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05-27-2015 Board Meeting Agenda Packet
Orange County Sanitation District Wednesday, May 27, 2015 Regular Meeting of the 6:00 P.M. Board of Directors Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Greg Sebourn, City of Fullerton) DECLARATION OF QUORUM: ROLL CALL: PUBLIC COMMENTS: 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. Speakers are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: • OC Science & Engineering Fair Winners REPORTS: The Chair and the General Manager may 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. ELECTIONS: 1. A. Open nominations for Chair of the Board of Directors (Election to be held at the regular June Board Meeting, unless only one candidate is nominated). B. Open nominations for Vice Chair of the Board of Directors (Election to be held at the regular June Board Meeting, unless only one candidate is nominated). 05/27/15 OCSD Board of Directors Agenda Page 1 of 7 CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. Approve minutes for the Regular Board Meeting held on April 22, 2015. 3. A. Approve a sole source purchase order to Haaker Equipment Company for rental of a combination sewer cleaning truck, for a total amount not to exceed $145,000; and, B. Approve a contingency of$29,000 (20%). OPERATIONS COMMITTEE: 4. Approve minutes of the May 6, 2015 meeting of the Operations Committee. 5. A. Approve Amendment No. 2, for the Overhaul of Plant No. 2 Central Generation Engine No. 4, to the Contract with NRG Energy Services, LLC, P0105280-013, for period November 1, 2014 through October 31, 2015 for an additional amount of$399,375.66 and, B. Approve an Additional Contingency of$39,937.57 (10%). 6. A. Award a Service Contract to Denali Water Solutions for Grit and Screenings Removal, Specification No. S-2015-66813D, for a total amount not to exceed $387,905.00 for the period June 22, 2015 through July 31, 2016, with four one-year renewal options; and, B. Approve a contingency of$38,790.00 (10%). 7. Award a Sole Source contract to Performance Pipeline Technologies for a six- month period, effective July 1, 2015 through December 31, 2015, with (one) 6- month renewal option, for the cleaning services of approximately 90 miles of Area 7 sewer pipelines and manholes for an amount not-to-exceed $202,204. 8. Approve an Agreement with Inland Empire Regional Composting Authority (IERCA) to receive and compost up to 50 wet tons per day (Monday thru Friday) of the Orange County Sanitation District's biosolids at a tipping fee of$54 per wet ton of biosolids and an administrative fee of$2 per wet ton of biosolids exclusive of trucking costs for a contract term of one-year commencing on the date of execution of the Agreement, with three one-year renewal options in a total annual amount not to exceed $900,000/per year. 05/27/15 OCSD Board of Directors Agenda Page 2 of 9. A. Approve a project budget increase of$4,471,403 for a total project budget of$56,687,403 for Newport Force Main Rehabilitation, Project No. 5-60; B. Approve a contingency increase of $4,038,650 (11%) to the construction contract with Kiewit Infrastructure West Company for Newport Force Main Rehabilitation, Project No. 5-60, for a total contingency of $7,343,000 (20%); and, C. Approve Amendment No. 3 to the Professional Consultant Services Agreement with Brown & Caldwell to provide construction support services for Newport Force Main Rehabilitation, Project No. 5-60, for $432,753, increasing the total amount not to exceed $3,071,639. 10. Approve a contingency increase of$328,078 (27%)to the construction contract with W.M. Lyles for Oxygen Plant Demolition at Plant No. 2, Project No. SP-129, for a total contingency of$497,783 (41 a/%). 11. A. Approve an increase in the project budget for Headworks Rehabilitation at Plant 1, Project No. P1-105 from $76,476,000 to $235,273,000, and an increase in the construction budget from $44,181,000 to $155,000,000; B. Approve a Professional Design Services Agreement with Carollo Engineers, Inc. to provide engineering design services Project No. P1- 105, for an amount not to exceed $17,528,957; and C. Approve a contingency of$1,752,896 (10%); and D. Cancel Project No. P1-120, Headworks Expansion, as its scope of work is included in Project No. P1-105. ADMINISTRATION COMMITTEE: 12. Approve minutes of the May 13, 2015 meeting of the Administration Committee. 13. Receive and file District purchases made under the General Manager's authority for the period of January 1, 2015 - March 31, 2015. 14. Receive and file Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2015. OS 7/15 OCSD Board of Directors Agenda Page 3 of 7 15. Approve not-to-exceed numbers as follows, with the understanding that the Sanitation District's insurance broker will continue to negotiate with insurers to seek the lowest possible premiums prior to the expiration date of the current major insurance policies: A. Excess liability insurance - $403,662. B. Excess workers compensation insurance - a rate of $0.3805 per $100 of payroll (estimated premium at $240,000). C. Property and Boiler & Machinery combined - $705,186. D. Earthquake insurance - $88,587. STEERING COMMITTEE: 16. A. Approve minutes of the April 16, 2015 Special Steering Committee Meeting; and B. Approve minutes of the April 22, 2015 Regular Steering Committee Meeting. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 17. Approve minutes of the May 11, 2015 meeting of the Legislative and Public Affairs Committee. AUDIT AD HOC COMMITTEE: 18. Receive and file minutes of the April 22, 2015 meeting of the Audit Ad Hoc Committee. GWRS STEERING COMMITTEE: 19. Receive and file minutes of the January 12, 2015 meeting of the GWRS Steering Committee. NON-CONSENT: 20. A. Ratify the use of General Managers Purchasing Authority, Ordinance OCSD-44, Article 2, Section 2.03E (Critical Time-Sensitive Procurement) authorizing the General Manager sign a memorandum of understanding (contract) with the California State Association of Counties — Excess Insurance Authority (CSAC-EIA) for medical insurance, effective July 1, 2015; and OS 7/15 OCSD Board of Directors Agenda Page 4 of 7 B. Adopt Resolution No. OCSD 15-11, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Medical Insurance Changes Identified Through the 2015 Medical Reopener Negotiations." 21. A. Approve the following proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2015-16: 1) Reduce the approved future Single Family Residential (SFR)` and Multi-Family (MFR) rate increases as follows: SFR MFR SFR MFR Approved Approved Proposed Proposed July 1, 2015 $323.00 $226.10 $322.00 $225.40 July 1, 2016 $331.00 $231.70 $327.00 $228.90 July 1, 2017 $339.00 $237.30 $331.00 $231.70 'The SFR is the underlying rate for the Districfa primary rate stmcture and as such other components of the rate structure will be adjusted similarly. 2) Include a payment of $50 million to the Orange County Retirement System (OCERS) to be credited against the District's Unfunded Actuarial Accrued Liability (UAAL). 3) Approve the FY 2015-16 Operating Budget of $149.3 million, a decrease of $5.7 million (3.7%). 4) Approve the FY 2015-16 Capital Improvement Program (CIP) total outlay budget of $181.0 million, an increase of $1.6 million (0.9%), bringing the total CIP budget to $2.4 billion consisting of 126 projects. 5) Approve the 2015-16 Outlays as follows: Originally Proposed Adopted Budget Budget Revision Category FY 2015-16 FY 2015-16 Operations and Maintenance 155,004,500 149,306,940 Capital Improvement Program 180,338,000 181,912,000 Less CIP Savings and Deferrals - (6,891,000) Rehab, Replacement, Refurbishment 25,749,000 - Debt Service 86,714,000 91,777,000 Reduction of Long-term Liabilities - 50,000,000 Re-Purchase of Excess Capacity 1,115,000 1,000,000 General Liability& Property Insurance 1,611,200 1,657,700 Workers' Compensation 790,000 955,000 Insurance Total 451.321.700 469.717.840 05/27/15 OCSD Board of Directors Agenda Page 5 of 7 B. Adopt Resolution No. OCSD 15-12 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Directing the County Tax Collector to include Sanitary Sewer Service Charges on Fiscal Years 2015-16 through 2017-18 property tax bills and Repealing Resolution No. OCSD 13-05." AB 1234 REPORTS: INFORMATION ITEMS: None. 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. Convene in closed session. (1) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Potential Cases: 3 Klean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627-JVS-FFM Alex Shaaban v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2014-00714555 Kelly Ross v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2014-00714553 Reconvene in regular session. 05/27/15 OCSD Board of Directors Agenda Page 6 of 7 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Adjourn the Board meeting until the next Regular Board Meeting on June 24, 2015, at 6:00 p.m. Accommodations for the Disabled: Meeting Rooms are 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) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California,and on the Sanitation District's website at www.ocsd.com,not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714)593-7433 klore(o3ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbem( ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli0ocsd.com Director of Engineering Rob Thompson (714)593-7310 rthomosonaocsd.cem Director of Facility Support Services Nick Arhontes (714)593-7210 narhontes0ocsd.cem Director of Finance and Lorenzo Tyner (714)593-7550 ItvnentDocsd.com Administrative Services Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 05/27/15 OCSD Board of Directors Agenda Page 7 of 7 BOARD OF DIRECTORS Meeting Date To BA.of Dlr. os/v/ls AGENDA REPORT Item Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: NOMINATIONS FOR CHAIR AND VICE CHAIR OF BOARD OF DIRECTORS GENERAL MANAGER'S RECOMMENDATION A. Open nominations for Chair of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). B. Open nominations for Vice Chair of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). SUMMARY As provided in Resolution OCSD 15-01, Rules of Procedures for the Conduct of Business of the District, nominations for the Chair and Vice Chair are made at the regular May meeting, and the election will take place at the June meeting. The following is an excerpt from the current Rules of Procedures relative to the election of the Chair and Vice Chair for the Board of Directors of Orange County Sanitation District: "G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1st. The nominations for Chairperson and Vice Chairperson shall be made at the regular Board meeting in May of each year. Any person nominated for Chairperson shall be deemed to be nominated for Vice Chairperson in the event the person is not elected as Chairperson. Thereafter, the nominees shall prepare a statement setting forth their qualifications for the office sought. The statements shall be mailed to members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. If only one individual is nominated for Chairperson at the regular Board meeting in May, that individual shall be deemed elected as Chairperson, no election shall be held in June, and the individual shall assume office July 1st. If only one individual is nominated for Vice Chairperson at the regular Board meeting in May, that individual shall be deemed elected as Vice Chairperson, no election shall be held in June, and the individual shall assume office July 1s'. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to Page 1 of 2 resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regulady-scheduled term unless sooner removed as a result of action by a majority of the Directors. The Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. The Vice Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Vice Chairperson." PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A ATTACHMENTS N/A Page 2 of 2 ITEM NO. 2 Orange County Sanitation District MINUTES BOARD MEETING April 22, 2015 SANITgTjQy c ? z c+ o � 90r l� �J ��?• Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 412 212 01 5 Minutes of Board Meeting Page 1 of 13 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on April 22, 2015, at 6:03 p.m., in the Administration Building. Director Nagel delivered the invocation and led the Pledge of Allegiance. The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Tom Beamish, Chair Rose Espinoza A John Nielsen, Vice-Chair Allan Bernstein X Lisa Bartlett Michelle Steel X Sal Tinajero David Benavides X Steven Choi Lynn Schott A Keith Curry Scott Peotter X Ellery Deaton Sandra Massa-Lavitt A Tyler Diep Joy Neugebauer X James M. Ferryman Bob Ooten X Steven Jones Kris Beard X Jim Katapodis Erik Peterson X Robert Kiley Michael Beverage X Peter Kim Michele Steggell X Lucille Kring Jordan Brandman X Greg Mills Robert Collaoott X Richard Murphy Shelley Hasselbrink X Steve Nagel Michael Vo Glenn Parker X Cecilia Hupp X Gregory Sebourn Doug Chaffee X David Shawver Carol Warren X Fred Smith Steve Berry X Teresa Smith Mark Murphy Chad Wanke X Constance Underhill X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Rob Thompson, Director of Engineering; Lorenzo Tyner, Director of Finance & Administrative Services; Ed Torres, Director of Operations & Maintenance; Nick Arhontes, Director of Facility Support Services; Kelly Lore, Clerk of the Board; Jennifer Cabral; Ann Crafton; Norbert Gaia; Al Garcia; Stephanie Good; Lori Klinger; Andrew Nau; Rich Spencer and Paula Zeller. OTHERS PRESENT: Brad Hogin (General Counsel); Michael Beverage (Alternate Director, YLWD); Robert Collacott (Alternate Director, Villa Park); Doug Davert (EOCWD); Steve Filarsky (Filarsky & Watt); Robert Ooten (Alternate Director, CMSD). 04/22/2015 Minutes of Board Meeting Page 2 of 13 PUBLIC COMMENTS: None. SPECIAL PRESENTATION Director of Engineering, Rob Thompson presented a service award to Louie Eroles, Division 760, Engineering Assistant II for 25 years of service. Director of Operations and Maintenance, Ed Tones presented a service award to Ddaze Phuong, Division 830, Lead Plant Operator for 25 years of service. Principal Public Affairs Specialist, Jennifer Cabral showed the Board the winning video of the Public Service Announcement Video Contest; and then presented a certificate and a check to the winners of the contest, Christian Michaels and Emily Elder from El Dorado High School. Director Murphy departed the meeting at 6:12 p.m. REPORTS: Chair Beamish announced that the AB 1825 Mandatory Discrimination/Harassment Training will be held at OCSD, May 7g' at 2:00 p.m. He also announced that Board Chair and Vice-Chair nominations will take place at the next Board Meeting in May. General Counsel Brad Hogin, explained the nomination process. General Manager Jim Herberg announced that Kelly Lore had been appointed as Clerk of the Board. He also informed the Board of upcoming dignitary tours including: Congressman Alan Lowenthal's office and Assembly member Young Kim. Mr. Herberg announced that the Honor Walk celebration will be held on May 27th at 4:00 p.m. and the GWRS Expansion ribbon cutting ceremony will also take place at a later date to be determined. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes for the Regular Board Meeting held on March 25, 2015; and AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Withers; and Yarc NOES: None ABSTENTIONS: Hupp (Alternate) and Underhill (Alternate) ABSENT: Curry; Diep; R. Murphy and Nielsen 04=2015 Minutes of Board Meeting Page 3 of 13 2. MOVED, SECONDED, AND DULY CARRIED TO: Approve reallocation of FY 2014-15 insurance benefits budget funds by vendor rather than individual line item and as follows to align with actual costs. Total program costs will remain within the approved budget of$11,133,080. A. Employee Benefit Specialists (medical, dental, and vision plans; Employee Assistance Program) - Not to Exceed $10,492,580 B. Prudential (basic life, long-term disability, short-term disability) — Not to Exceed $610,000 C. The Standard (EMT & Manager disability) - Not to Exceed $30,500 AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 3. MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file bid tabulation and recommendation for Plant 1 Potable Water System Improvements, Project No. FE09-04; B. Award a construction contract to ODC Engineering and Technology, Project No. FE09-04, for a total amount not to exceed $168,500; and C. Approve a contingency of$25,275 (15%). AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver, F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 04=2015 Minutes of Board Meeting Page 4 of 13 4. MOVED, SECONDED, AND DULY CARRIED TO: Authorize the General Manager to negotiate a license agreement with Air Products and Chemicals, Inc. for the operation of a Hydrogen Dispensing Station at Plant 1 in a form recommended by General Counsel. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 5. MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file bid tabulation and recommendation; B. Award a construction contract to Environmental Construction, Inc. for Trunk Line Odor Control Improvements, Project No. P1-123, for a total amount not to exceed $5,344,626; and C. Approve a contingency of$534,463 (10%). AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen OPERATIONS COMMITTEE: 6. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the April 1, 2015 meeting of the Operations Committee. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc 04=2015 Minutes of Board Meeting Page 5 of 13 NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 7. MOVED, SECONDED, AND DULY CARRIED TO: Approve Change Order No. 4 to Purchase Order 104251-OB to US Peroxide, for the Purchase of hydrogen peroxide, Specification No. C-2011-480, authorizing a unit price increase from $1.867 per gallon to $1.923 per gallon delivered, plus applicable sales tax, for the period July 1, 2015 through June 30, 2016, at a cost not to exceed $1,100,000. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver, F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 8. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Site Access and License agreement with Pacific Quality Partners, to allow mobilization of a chemical dosing station and injection of chemicals at 1355 West Imperial Highway in the city of Brea, for a term of 36 months, at a total cost of $2,280 per month for the first 12 months, in a form approved by General Counsel; and B. Approve the General Manager, or his designee, to negotiate future monthly license fees, after one year, up to three percent price escalation per year, beginning July 1, 2016 and annually thereafter. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 04/W2015 Minutes of Board Meeting Page 6 of 13 Operations Chair Sebourn recused himself from Item 9 and left the meeting during the vote. 9. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement with Carollo Engineers, Inc. to provide construction support services for Trunk Line Odor Control Improvements, Project No. P1-123, for an amount not to exceed $529,970; and B. Approve a contingency of$52,997 (10%). AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy; Nielsen and Sebourn (recused) 10. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a budget increase of $450,000, increasing the total amount not to exceed $3,250,000; B. Approve a Professional Services Agreement with CDM Smith, Inc., to provide Engineering Services for Effluent Reuse Study, Project No. SP- 173, for an amount not to exceed $2,008,510; C. Approve a contingency of$200,850 (10%); and, D. Authorize staff to negotiate a cost-sharing agreement with the Orange County Water District for future Board approval. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver, F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 04=2015 Minutes of Board Meeting Page 7 of 13 11. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Design Services Agreement with AECOM to provide engineering design services for the South Perimeter Security & Storm Water Improvements at Plant No. 1, Project No. P1-125, for an amount not to exceed $567,003; and B. Approve a contingency of$56,700 (10%). AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen ADMINISTRATION COMMITTEE: 12. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the April 8, 2015 meeting of the Administration Committee. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: Katapodis ABSENT: Curry; Diep; R. Murphy and Nielsen STEERING COMMITTEE: 13. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve minutes of the Regular Steering Committee Meeting held on March 25, 2015. B. Approve minutes of the Special Steering Committee Meeting held on March 27, 2015. 04/22/2015 Minutes of Board Meeting Page 8 of 13 C. Approve minutes of the Special Steering Committee Meeting held on April 10, 2015. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver, F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 14. MOVED, SECONDED, AND DULY CARRIED TO: Approve and authorize the execution of the amended compensation agreement with the City of Garden Grove and other taxing entities within the meaning of Health and Safety Code Section 34180(f), as required by the California Department of Finance. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver, F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 15. MOVED, SECONDED, AND DULY CARRIED TO: Approve first amendment to Agreement with East Orange County Water District (EOCWD), relating to the proposed transfer of ownership of local sewers in Service Area 7, and the appropriate reserve balances. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen 04/W2015 Minutes of Board Meeting Page 9 of 13 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 16. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the April 13, 2015 meeting of the Legislative and Public Affairs Committee. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy and Nielsen Director Withers departed the meeting at 6:25 p.m. NON-CONSENT: 17. MOVED, SECONDED, AND DULY CARRIED TO: A. Motion to read Ordinance No. OCSD47 by title only and waive reading of said entire Ordinance. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Underhill (Alternate) and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy; Nielsen and Withers Clerk of the Board Kelly Lore read the title of Ordinance OCSD-47 aloud. MOVED, SECONDED, AND DULY CARRIED TO: B. Adopt Ordinance No. OCSD47, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District, Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects; and Repealing Ordinance No. OCSD-44," and C. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. 04/22/2015 Minutes of Board Meeting Page 10 of 13 AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kim; Kring; Mills; Nagel; Sebourn; Shawver, F. Smith; T. Smith; Tinajero; Underhill (Alternate)and Yarc NOES: None ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy; Nielsen and Withers Labor negotiator, Steve Filarsky introduced this item, stating that the proposed Resolution and MOU represents the directive received from the Board. 18. MOVED, SECONDED, AND DULY CARRIED TO: A. Adopt Resolution No. OCSD 15-10, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501 (Local 501), for Fiscal Years 2014/2015 & 2015/2016" and B. Direct staff to finalize and sign the Memorandum of Understanding (MOU) between Orange County Sanitation District and the Local 501 bargaining unit. AYES: Bartlett; Beamish; Choi; Deaton; Ferryman; Hupp (Alternate); Jones; Katapodis; Kiley; Kring; Nagel; Seboum; Shawver; F. Smith; Tinajero; Underhill (Alternate) and Yarc NOES: Kim; Mills and T. Smith ABSTENTIONS: None ABSENT: Curry; Diep; R. Murphy; Nielsen and Withers AB1234 REPORTS: Director Ferryman reported on the following from the respective committees he is a member of: NWRI - Met yesterday, continually working with five different committees regarding the water industry; Gary Brown, OC Coastkeepers, will be the Chair of the State Water Resources Control Board. GWRS - 2nd Phase Celebration should be held within the next month or two. He also reported that three underground pumps may have to be replaced. 04/22/2015 Minutes of Board Meeting Page 11 of 13 OCCOG - Voting tomorrow on whether to approve a 15K raise for current OCCOG Manager and possibly increase required work time. SARFCA - Director Ferryman reported that there remain five reaches of the project that are due to be completed in latest of April 2017. Director Sebourn stated that on April 8t1, he spoke with Cedar Hills Estates HOA who is upstream from the Placentia Trunk line regarding the upsizing of the trunk line along State College Blvd. and Yorba Linda Blvd. INFORMATION ITEMS: None. CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1); 54956.9(d)(2); 54956.9(d)(4) and 54957.6 The Board convened in closed session at 6:30 p.m. to discuss four items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. Chair Beamish recused himself from Closed Session Item No. 2 and Director Kim recused himself from Closed Session Item No. 3. They both left the meeting during discussion of those items. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 7:19 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Kring thanked Nick Arhontes, Director of Facility Support Services and OCSD for their fast response to a sewer spill in the City of Anaheim. Alternate Director Underhill announced that former Director Roy Moore was gravely ill. The Clerk of the Board will email Mr. Moore's address to the Board as requested. 04/22/2015 Minutes of Board Meeting Page 12 of 13 ADJOURNMENT: Chair Beamish adjourned the meeting at 7:23 p.m. until the SPECIAL Board Meeting on May 6, 2015 at 6:30 p.m. Kelly A. Lore Clerk of the Board 04/22/2015 Minutes of Board Meeting Page 13 of 13 BOARD OF DIRECTORS Meeting Date I TOBd.of Dir. o5/n/t5 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Nick Arhontes, P.E., Director of Facilities Support Services SUBJECT: RENTAL OF SEWER COMBO TRUCK FROM HAAKER EQUIPMENT COMPANY GENERAL MANAGER'S RECOMMENDATION Ratify and approve a sole source purchase order agreement to Haaker Equipment Company for rental of a sewer cleaning truck at a monthly rate of $12,000 for a total amount not to exceed $144,000. SUMMARY Staff performs planned and emergency sewer cleaning throughout our regional service area. The Sanitation District owns three combination type sewer cleaning trucks. During the past year, these trucks have experienced mechanical problems and been out of service for extended periods of time. With two and sometimes three OCSD combo trucks out of service at various times, OCSD began renting a combination type sewer cleaning truck from Haaker Equipment in July 2014 on a month to month basis at a competitive rental cost of $12,000 per month. Haaker was selected as a sole source as they carry this specialized equipment in rental inventory within the region. Another regional supplier had a hydroflusher type truck, but not the specific combination cleaning type truck we required. A one-time addition of funds is needed to cover the rental needs this fiscal year. The causes for these rental costs are not expected to recur in the future. A new truck was furnished by Haaker Equipment at no cost to OCSD to replace one of our newer trucks which was out of warranty. The cost to purchase one of these trucks is over $450,000. The eventual transfer of local sewers in the Tustin area this year will further reduce the need for this type of equipment. Staff does not recommend purchasing an additional truck at this time. PRIOR COMMITTEE/BOARD ACTION N/A ADDITIONAL INFORMATION N/A Page 1 of 2 BUDGET / PURCHASING ORDINANCE COMPLIANCE Rental fees incurred to date are $108,000. Board approval for exceeding the $100,000 General Manager's purchasing authority is required per the Sanitation District Purchasing Ordinance Article 7.01 B. Funds are available in the Department's operating budget. Date of ADDroval Purchase Amount Contingency 05/27/2015 $144,000 None ATTACHMENTS N/A JT:IH:NJA:pe Page 2 of 2 ITEM NO. 4 MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Facilities Support Services Orange County Sanitation District A regular meeting of the Operations Committee of the Orange County Sanitation District was held on May 6, 2015, at 5:00 p.m. at the District's Administrative Office. Committee Chair Seboum called the meeting to order and led the Flag Salute. A quorum was declared present, as follows: Operations Directors Present: Staff Present: Greg Sebourn, Chair Jim Herberg, General Manager David Shawver, Vice-Chair Bob Ghirelli, Assistant General Manager Lisa Bartlett Rob Thompson, Director of Engineering Ellery Deaton Ed Torres, Director of Operations & Maintenance Steve Jones Lorenzo Tyner, Director of Finance & Robert Kiley Administrative Services Lucille Kring Kelly Lore, Clerk of the Board Richard Murphy Cindi Ambrose Fred Smith Jennifer Cabral Michael Vo (Alternate) Michelle Chewning Chad Wanke Jim Colston Mariellen Yarc Carla Dillon John Nielsen, Board Vice-Chair Natasha Dubrovski Dean Fisher Operations Directors Absent: Norbert Gaia Tom Beamish, Board Chair Al Garcia Rebecca Long Kathy Millea Jeff Mohr Mike Puccio Robert Thiede Eros Yong Others Present: Brad Hogin, General Counsel Bob Ooten (Alternate Director) Mike Beverage (Alternate Director) Dave Dawson, W.M. Lyles PUBLIC COMMENTS: None. 05/06/2015 Opeations Committee Minutes Page 1 of 8 REPORT OF COMMITTEE CHAIR: Committee Chair Sebourn did not provide a report. REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, informed the Committee that the date for the GWRS Ribbon Cutting Dedication Ceremony has been set for June 26, 2015 from 9:00 a.m. - 10:30 a.m. and that invitations will be sent out in the very near future. CONSENT CALENDAR: 1. MOVED, SECONDED, and DULY CARRIED TO: Approve Minutes of April 1, 2015. AYES: Deaton, Kiley, Kring, Murphy, Nielsen, Sebourn, Shawver, Smith, F., Vo (Alternate)Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett; Beamish and Jones 2. MOVED, SECONDED, and DULY CARRIED TO: A. Approve a Professional Services Agreement with RBF Consulting, a Michael Baker International Company to provide environmental engineering services for the preparation of a CEQA document for the Santa Ana River Interceptor Rock Stabilizers Removal, Contract No. 241-8, for an amount not to exceed $172,917; and B. Approve a contingency of$17,292 (10%). AYES: Deaton, Kiley, Kring, Murphy, Nielsen, Sebourn, Shawver, Smith, F., Vo (Alternate)Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett; Beamish and Jones 05/062015 Operations Committee Minutes Page 2 of 8 4. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a Service Contract to Denali Water Solutions for Grit and Screenings Removal, Specification No. S-2015-6686D, for a total amount not to exceed $387,905.00 for the period June 22, 2015 through July 31, 2016, with four one-year renewal options; and, B. Approve a contingency of$38,790.00 (10%). AYES: Deaton, Kiley; Kring, Murphy, Nielsen, Sebourn, Shaviver, Smith, F., Vo (Alternate)Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett; Beamish and Jones 5. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: Award a Sole Source contract to Performance Pipeline Technologies for a six- month period, effective July 1, 2015 through December 31, 2015, with (one) 6- month renewal option, for the cleaning services of approximately 90 miles of Area 7 sewer pipelines and manholes for an amount not-to-exceed $202,204. AYES: Deaton, Kiley, Kring, Murphy, Nielsen, Sebourn, Shawver, Smith, F., Vo (Alternate)Wanks and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett; Beamish and Jones 05i062015 Operations Committee Minutes Page 3 of 8 Item pulled and heard separately. Director of Operations and Maintenance Ed Torres, provided a brief PowerPoint presentation on Item 3 and provided background on the damage that was found in the engine, which is the reason for the proposed change order. Mr. Torres answered questions regarding: life of engine; cost of total replacement; newer resistant materials and technologies; and types of gasket seals. 3. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve Amendment No. 2, for the Overhaul of Plant No. 2 Central Generation Engine No. 4, to the Contract with NRG Energy Services, LLC, P0105280-OB, for period November 1, 2014 through October 31, 2015 for an additional amount of$418,791. -2 $399,375.66 and, B. Approve an Additional Contingency of$41;878a7 $39,937.57 (10%) AYES: Deaton, Kiley, Kring, Murphy, Nielsen, Sebourn, Shawver, Smith, F., Vo (Alternate)Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett; Beamish and Jones NON-CONSENT CALENDAR: Director Bartlett arrived at 5:13 p.m. Director Jones arrived at 5:17 p.m. Environmental Compliance Regulatory Affairs Manager, Jim Colston provided a video and an informative PowerPoint presentation regarding Item 6, the Biosolids management program and the proposed agreement. Mr. Colston then answered questions from the Committee regarding: Alternate technologies available; AquaCritox; and a future ban of biosolids in landfills. 6. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: Approve an Agreement with Inland Empire Regional Composting Authority (IERCA) to receive and compost up to 50 wet tons per day (Monday thru Friday) of the Orange County Sanitation District's biosolids at a tipping fee of$54 per wet ton of biosolids and an administrative fee of$2 per wet ton of biosolids exclusive of trucking costs for a contract term of one-year commencing on the date of 05/06/2015 Operations Committee Minutes Page 4 of 8 execution of the Agreement, with three one-year renewal options in a total annual amount not to exceed $900,000/per year. AYES: Bartlett, Deaton, Jones, Kiley, Kring, Murphy, Nielsen, Seboum, Shawver, Smith, F., Vo (Alternate) Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Beamish Director of Engineering Rob Thompson introduced Engineering Manager Dean Fisher who updated the Committee on the Newport Force Main Rehabilitation. Mr. Fisher explained the challenges of the project, including the removal of underground concrete structures; traffic control; micro-tunneling; gas line relocation efforts, and raising the pipeline while trying to keep the project on schedule. Vice-Chair Nielsen thanked Director Thompson for the continued construction outreach efforts. 7. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a project budget increase of$4,471,403 for a total project budget of $56,687,403 for Newport Force Main Rehabilitation, Project No. 5-60; B. Approve a contingency increase of $4,038,650 (11%) to the construction contract with Kiewit Infrastructure West Company for Newport Force Main Rehabilitation, Project No. 5-60, for a total contingency of$7,343,000 (20%); and, C. Approve Amendment No. 3 to the Professional Consultant Services Agreement with Brown & Caldwell to provide construction support services for Newport Force Main Rehabilitation, Project No. 5-60, for $432,753, increasing the total amount not to exceed $3,071,639. AYES: Bartlett, Deaton, Jones, Kiley, Kring, Murphy, Nielsen, Sebourn, Shawver, Smith, F., Vo (Alternate) Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Beamish 05i062015 Operations Committee Minutes Page 5 of 8 Committee Chair Sebourn stated that the Committee would hear Pubic Comments on Item 8 at this time. Mr. Dave Dawson, President of W. M. Lyles, spoke in favor of the item. Mr. Thompson provided a history of the item and explained the bid process. He stated that the District and the contractor have negotiated an amicable split of the costs which will allow the project to move on without an additional bidding process. Mr. Thompson answered questions regarding: difference in bid vs. additional cost; fairness to other bidders; District's awareness of the RCI solution; contractual requirements and the clarity of the proposal. Mr. Thompson stated that the Committee directed staff to work with the contractor to find an alternative solution to this problem and that is what has been proposed. Mr. Herberg also clarified his logic for the decision he made for this particular recommendation. 8. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: Approve a contingency increase of $328,078 (27%) to the construction contract with W.M. Lyles for Oxygen Plant Demolition at Plant No. 2, Project No. SP-129, for a total contingency of$497,783 (41%). AYES: Bartlett, Deaton, Jones, Kiley, Kring, Nielsen, Sebourn, Shawver, Smith, F., Vo (Alternate)Wanks and Yarc NOES: Murphy ABSTENTIONS: None ABSENT: Beamish 9. Capital Improvement Program (CIP) Update for IY 2015/16. Engineering Manager Kathy Millea, provided an informative PowerPoint presentation regarding the CIP budget for FY 2015116 including: the budget process; drivers for new CIP projects; condition assessment program; the top budget increases and decreases; project cancellations; new projects at Plant Nos. 1 &2, the collections systems and the proposed 10-year CIP spending. Committee Chair Sebourn recused himself from Item 10 and left the meeting during discussion and voting. Committee Vice-Chair Shawver presided for this Item. 05/06/2015 Operations Committee Minutes Page 6 of 8 CIP Project Manager Jeff Mohr, provided a PowerPoint on the Headworks Rehabilitation project at Plant No. 1 (P1-105) including: the aging facilities; revised planning approach; rehabilitation of existing facilities; demolition of unused facilities; upgrades and replacements; key challenges; design and construction costs along with the consultant's qualifications. Mr. Mohr answered questions from the committee regarding odor control techniques and completion timelines. 10. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve an increase in the project budget for Headworks Rehabilitation at Plant 1, Project No. P1-105 from $76,476,000 to $235,273,000, and an increase in the construction budget from $44,181,000 to $155,000,000; B. Approve a Professional Design Services Agreement with Carollo Engineers, Inc. to provide engineering design services Project No. P1-105,for an amount not to exceed $17,528,957; and C. Approve a contingency of$1,752,896 (10%); and D. Cancel Project No. P1-120, Headworks Expansion, as its scope of work is included in Project No. P1-105. AYES: Bartlett, Deaton, Jones, Kiley, Kring, Murphy, Nielsen, Shawver, Smith, F., Vo (Alternate) Wanke and Yarc NOES: None ABSTENTIONS: None ABSENT: Beamish; and Sebourn (recused) Committee Chair Sebourn returned to the meeting and then presided. Committee Vice-Chair Shawver departed the meeting at 6:21 p.m. Director Wanke departed the meeting at 6:24 p.m. INFORMATION ITEMS: 11. Informational Presentation on the 2015-16 Budget Director of Finance and Administrative Services, Lorenzo Tyner provided a short PowerPoint presentation on the 2015-16 budget update including: revenues and outlays; CIP - four distinct areas, dropped rate increases and comparison SFR 05/06/2015 Operations Committee Minutes Page 7 of 8 rates. Mr. Tyner stated that the full budget will be presented next month for adoption. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT At 6:26 p.m., Committee Chair Sebourn declared the meeting adjourned to the next scheduled meeting of Wednesday, June 3, 2015 at 5:00 p.m. Submitted by, Kelly A. Lore Clerk of the Board 05/06/2015 Operations Committee Minutes Page 8 of 8 OPERATIONS COMMITTEE Needng pate TOBd.Of DIl. 0 1061 OS/27/16 AGENDA REPORT Item Number Item Number 3 5 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: CHANGE ORDER NO. 2, FOR THE OVERHAUL OF CENTRAL GENERATION ENGINE No. 4 GENERAL MANAGER'S RECOMMENDATION A. Approve Amendment No. 2, for the Overhaul of Plant No. 2 Central Generation Engine No. 4, to the Contract with NRG Energy Services, LLC, P0105280-013, for period November 1, 2014 through October 31, 2015 for an additional amount of$399,375.66; and, B. Approve an Additional Contingency of$39,937.57 (10%) SUMMARY Plant No. 2 engine No. 4 was undergoing a 40,000 hour major overhaul. During disassembly of the engine there were unforeseen damages found requiring additional parts and labor. Change Order No. 2, is recommended for the completion of No. 4 engine overhaul before peak power begins when we could incur additional electrical power costs associated with having one generator offline. PRIOR COMMITTEE / BOARD ACTIONS September 14, 2014, Original PO Amount, $743,524.44, plus Contingency $148,704.88 (20%) ADDITIONAL INFORMATION • During the overhaul inspection it was discovered that significant damage had occurred to several key components of the engine (e.g. CAMSHAFT, CYLINDER LINERS, V-BLOCK, HEAD) that were not known prior to disassembly. Repair of these components are necessary to ensure the reliable operation of the engine. • Staff recommends that the additional work be completed by the contractor (NRG Energy Services LLC) currently performing the engine overhaul. • An additional 10% contingency is requested because of unknowns that may exist with the removal and further inspection of the Camshaft and the 6 Piston Liners that require repair. Page 1 of 2 BUDGET/ PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the OCSD's Purchasing Ordinance No. OCSD44.The additional funds to cover the increased Contingency and Change Order No. 2 (Section: 6, Page: 104, Line Item 109) Date of Contract Contract Change Contingency Contingency Contingency Approval Amount Order Amount Amount Used Remaining 9/24/2014 $743,524.44 $148,704.88 2/18/2015 (Amendment#1) $10,516.00 $10,516.00 $138,189.00 5/27/2015 (Amendment#2) $399,375.66 5/27/2015 $1,153,416.10 $39,937.57 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package and attachments: • Amendment No. 2 • PowerPoint Presentation from Operations Committee Meeting 05/06/15 Page 2 of 2 AMENDMENT NO. 2 To Service Contract Central Generation Engine Overhauls Specification No.S-2014-601BD THIS AMENDMENT TO THE CONTRACT is made and entered into, to be effective on the date last signed below, by and between Orange County Sanitation District hereinafter referred to as "OCSD" with main offices located at 10844 Ellis Avenue, Fountain Valley, California 92708-7018 and NRG Energy Services LLC with a principal business at 990 Peiffers Lane, Harrisburg, PA 17109-5907 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". WHEREAS, OCSD and Contractor executed, delivered and entered into the Contract between OCSD and Contractor,the effective date of which is September 24, 2014 ("the Contract'); and WHEREAS, the Parties wish to amend the Contract to make certain modifications which shall be called Amendment No. 2 ("Amendment"); and WHEREAS, the Parties to the Contract desire that this Amendment be incorporated into the Contract and become a part thereof from the beginning; and WHEREAS, the Parties desire that the Contract as modified by Amendment No. 1 and this Amendment shall constitute the sole and entire Contract among the Parties; NOW, THEREFORE, in consideration of these premises and the mutual covenants contained herein, the Parties agree to amend the Contract to: 1. Add the work described in the proposal dated April 28, 2015 (attached hereto as part of Amendment No. 2; and 2. Revise Service Contract, Article 3 Payments, 3.1 and add the following milestone after"of invoices submitted for milestones completed as follows:" • 'Partial Payment for work that has been completed on Engine 4 at Plant 2. The total for this work is $200,000 for approximately 73% of the total scope of work for a lump sum bid."; and 3. Increase the total Contract amount by $399,375.66 for a new total amount not to exceed One Million, One Hundred Fifty Three Thousand, Four Hundred Sixteen and 10100 Dollars ($1,153,416.10). Except as expressly amended above, the Contract will remain unchanged and in full force and effect. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Amendment No. 2 to be signed by the duly authorized representatives as of the day and year last signed below. Orange County Sanitation District NRG Energy Services LLC By: Contracts/Purchasing Manager Date Dale Name: Chair, Board of Directors Date Title: Clerk of the Board Date 5114/15 :} lllr9, 990 Energy Service LLC EnergyServices 990 Pburg, Lane (717)Harrisburg, 53 17109 (717) 920-8530 April 28, 2015 Mr. Darius Ghazi Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 RE: Additional Work at Plant 2 Mr. Ghazi Thank you for the opportunity to explain the additional out of scope work that is required for Engine 4 at Plant 2. The majority of the work under Work Order 105280-000 OB is completed but during our inspections we noted many items that display out of tolerance / specification clearances that will affect the operation of the unit. Not rectifying some items may lead to catastrophic incidents costing hundreds of thousands of dollars to repair and lose the electrical generation capacity of the unit for months. The main item that has been noted as requiring major work is the two camshafts, Item 1. These 23 foot long shafts have individual lobes which control the injection of the air and fuel in to the engine for combustion and operate the exhaust valves to remove the by-products of combustion. The specific configuration of each lobe allows the valves to operate at the correct time to maintain an fuel efficient operation. As the lobes wear, the timing of the valve operation changes, reducing the efficiency and ultimately causes unburned fuel to be exhausted. This wastes money and thermal efficiency. NRG will remove and refurbish both camshafts to new condition restoring proper operation. Cylinder liners, Item 5, which are replaceable sleeves which hold the compression pistons, are chrome lined for extended operation in these units. With almost 100,000 hours of operation logged, the liners although still dimensionally within tolerance are showing signs of age and use. This is noticed in six (6) of them having chrome peel off of their interiors. These areas are now subject to quicker degradation of the surrounding chrome which can lead to cylinder failure. The effects of cylinder failure include contamination of the 1000 gallon oil sump with chrome, high carbon and sulfur content and if the wear is high enough, iron. These wear particles can work their way through the lubrication system to cause other essential components to wear prematurely and fail. The V-Block gaskets, Item 8, are leaking oil and water. Normally gaskets are easy to change. These gaskets are located under large blocks of iron each weighing 13,000 pounds. Their importance Is to keep the oil and water systems separate to prevent contamination of either system. Currently the leak is small in terms and does not pose an Immediate threat of contamination. If this is left unrepaired the leak will only get worse. The system that would be contaminated first is the 1000 gallon lubrication system. The repair is not a job for the untrained since it requires specialized tools and lifting equipment. Items that show a lot of normal wear for the age are showing up during the inspection. A hub bushing, similar to a bearing that provides support and alignment of an item, is Item 15. It along with Item 14, the air start distributor, is an assembly. The distributor which as its name suggests, sends sequenced air to the different cylinders to start the engine turning, is severely worn. Together they are worn and need to be refurbished so that the starting system is as efficient as possible. Other pats that are showing their age include the water jumpers, Item 11. These are cast iron components that move cooling water from one location of the engine to another, usually changing direction of the flow. These parts take not just the heat and vibration but the erosive effect of water flowing constantly through them. Our inspection has proved the dealing surfaces are pitted causing leaks and the wall thicknesses have been reduced by greater than 70%. To prevent further leaks and minimize down time, replacement of these parts is warranted. Rocker arms, Item 16, transmit the force from the camshaft to make the intake and exhaust valves open. The shafts and bushings in these assemblies are worn and have excessive clearances. These need to be replaced so as to not prevent loss of lubrication and seizing. The exhaust flanges, Item 17, transmit the exhaust gases from the cylinder head out to the main manifold that removes them to the exterior. The method of keeping the exhaust gases contained in the pipe and not being expelled in to the engine room is by closely fitted rings which expand under the gases pressure. This design though allows for vibration to be transmitted and ultimately causes a wear area that allows the gas to bypass and the rings to not seal properly. New rings will be used but since the sealing area of the flange is worn, without replacement the exhaust will leak out in to the personnel space. The Bicera Valve, Item 19, is a device to protect the engine from over pressurization in the crankcase. The crankcase holds the rotating parts (rods, pistons) and the lubricating oil. As previously discussed, if compression gas leak in to the crankcase and mix with oil fumes and vapors, a potential exists for an explosion in the crankcase. Should that occur, these automatic valves open under this pressure and relieve it down ward so that the entire unit is not severely damaged. I hope that this discussion adequately explains why the additional work is being requested. NRG's main concern is that the County's engines work efficiently and effectively for years to come. In the 26 years the engines have been operating they have been work horses, and there are not many engine types that can perform this many hours without major service. NRG has been and will hopefully continue to be a partner with Orange County in the maintenance of these units. Argfi f NRG Energy Services LLC EnergyServices " 990 Pelffers Lane Harrisburg,PA 17109 (717)920-8530 March 25, 2015 - - Mr. Michael Kobzoff Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 9270.8 RE: NRG Crew departing OCSD Plant 2 Site Mr. Kobzoff Due to unforeseen circumstances with the engine conditions uncovered during the overhaul and inspection of Engine 4 at Plant 2, NRG may be forced to depart the site due a lengthy approval process for work that has been quoted to the County. The work is for items that are outside of the Work Scope that has been identified in the NIB and approved by the County. The costs for the crew to depart and remobilize to the site are based on the best estimates available at this time and are based on booking all travel on short notice. These costs are 'Not-To-Exceed' values and are priced on one way travel. Because this is a demobilization and remobilization, the cost will be doubled to cover both legs of the trip. Four team members will depart and return to complete all tasks. The total price per person will include all travel labor, airline ticket price, and expense costs. Due to the work schedule, travel out of Orange County will be on a Saturday and the return to Orange County will be on a Monday for pricing purposes. OCSD will be invoiced actual costs on these trips. The price for the NRG Crew for one way travel is $9088.00. Round trip travel is $18,178.00. Please let me know if you have any questions about this letter. Sincerely -&� Thomas Gallager NRG Energy Services NRG Energy service LLC EnergyServices Harr 990 isburg, 0e Harrisburg, PA 17109 (717) 920-6530 April 15, 2015 Mr. Michael Kobzoff Orange County sanitation District 22212 Brookhurst Street Huntington Beach, CA 92646 RE: Return of Tool Boxes from Plant 2 Mr. Kobzoff Due to the delay in the approval of the contract amendment, NRG Energy Services (NRG) has requested and has been approved by OCSD, to have the primary tool box equipment returned to NRG while the approval is pending. NRG has been informed that the approval process will not be completed until at least the end of May for recommencement o work no earlier than June 1, 2015. During this period the tools that are in Plant 2 are needed for other work that NRG has commitments for. The cost for the round trip shipping of the tool boxes has been estimated to be $11,000.00. These are large and quite heavy boxes to transport across the country. We appreciate the courtesy of allowing this action to happen and look forward to having the tools and men return to OCSD to complete the maintenance on Engine #4. Regards, C N�-�-�((� - Thomas Gallager NRG Energy Services REMOVE ITEM DESCRIPTION CITY PARTS PARTS TOTAL LABOR PER EA LABOR TOTAL 1 Camshaft Camshaft 1 $ 129,842.42 $ 129,842.42 $ 37,931.94 $ 37,931.94 5 Liners LSVB-9-2A#1 Cylinder Liner 2 $ 7,682.81 $ 15,365.62 $ 8,322.00 $ 16,644.00 Liners G38-9-7G#1 Gasket 6 $ 24.78 $ 148.68 $ - $ - Liners G18-9-7G#2 Gasket 6 $ 24.78 $ 148.68 $ - $ - Liners SD-94-LSVB-6 Piston Rings 6 $ 1,258.34 $ 7,550.04 $ 375.00 $ 2,250.00 Liners LSVB-9-2A#1 Add'I Labor 4 $ - $ - $ 8,322.00 $ 33,288.00 7 Head Studs LS-9-WW#2 Head Studs 6 $ 171.62 $ 1,029.72 $ 375.00 $ 2,250.00 8 V-Block Leak LS-9-W W#2 Head Studs,R/R 16 $ 171.62 $ 2,745.92 $ - $ - V-Block Leak Sealant/Primer 16 $ 89.50 $ 1,432.00 $ - $ - V-Block Leak LSVB-9-11 Gasket 2 $ 465.00 $ 930.00 $ - $ - V-Block Leak Labor-Remv&Reinstall Block(3.5 Days) 2 $ - $ - $ 11,550.00 $ 23,100.00 9 Oil Pump Oil Pump 1 $ - $ - $ 1,500.00 $ 1,500.00 15 Hub Bushing Repair LSV-9-MM Bushing 1 $ 688.10 $ 688.10 $ 720.00 $ 720.00 Hub Bushing Repair LSVG-76-1F#1 Bushing 1 $ 101.92 $ 101.92 $ - $ - HubBushingRepair G18-9-68#1 Bushing 1 $ 537.50 $ 537.50 $ - $ - 16 Rocker Arms LS-25-1C Shaft 4 $ 555.78 $ 2,223.12 $ - $ - Rocker Arms LS-25-3A Bushing 10 $ 92.05 $ 920.50 $ - $ 770.00 18 Jacket Water Headers 0 $ - $ - $ - $ 750.00 11 Water Jumpers LSVB-59-3E Jumper 16 $ 225.16 $ 3,602.56 $ - $ - Water Jumpers LSV-11-F Jumper 2 $ 292.59 $ 585.18 $ - $Water Jumpers LSV-11-B Jumper 16 $ 218.67 $ 3,498.72 $ - $ - 14 Air Start Distributor Distributor 1 $ 9,983.00 $ 9,983.00 $ - $ - 17 Small Exhaust Flanges LSVB-24-6N Flange 16 $ 265.00 $ 4,240.00 $ - $ - 19 Bicera Valve 2-05V-297-002 Relief Valve Assy 1 $ 1,331.62 $ 1,331.62 $ - $ - $ 186,905.30 $ 119,203.94 PARTS TOTAL $ 186,905.30 SALES TAX @8% $ 14,952.42 LABOR TOTAL $ 119,203.94 MEALS&LODGING $ 28,864.00 TOTAL CONSUMABLES $ 1,766.00 TOTAL FREIGHT/SHIPPING(PARTS) $ 18,506.00 MOB&DEMOB CREW-ROUNDTRIP $ 18,178.00 MOB&DEMOB TOOLS-ROUNDTRIP $ 11,000.00 TOTAL CHANGE ORDER $ 399,375.66 Central Generation Overhaul of Plant No . 2 Engine Plant No . 2 Central Generation Engines POW 16 MegaWatts of Power Generation Capacity Cams Used to control the air/gas intake and hot gas exhaust. This image is showing the uneven wear pattern which will cause engine control issues. Cylinder liners r Replaceable sleeves which hold the compression pistons are chrome lined for extended operation in these units. V-Block Gaskets _ --_.f ��-,► .AO Ali- These gaskets are located under large blocks of iron each weighing 13,000 pounds. Their importance is to keep the oil and water systems separate. Overview of Plant No . 3 Engine Overhaul • Major service every 40, 000 hours • Additional repairs identified after tear down and inspection • NRG was low bidder under competitive procurement — Very satisfied with quality of work • Bidding additional work will : — Create warranty problems — Increase costs ( reliability and peak shavings) Questions ? OPERATIONS COMMITTEE Needng pate TOBd.Of DIl. 0 1061 5 OS/27/1S AGENDA REPORT Item Number Item Number 4 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: GRIT AND SCREENINGS REMOVAL, SPECIFICATION NO. S-2015-668BD GENERAL MANAGER'S RECOMMENDATION A. Award a Service Contract to Denali Water Solutions for Grit and Screenings Removal, Specification No. S-2015-66813D, for a total amount not to exceed $387,905.00 for the period June 22, 2015 through July 31, 2016, with four one-year renewal options; and, B. Approve a contingency of$38,790.00 (10%). SUMMARY This service provides bins for the collection of grit and screening materials, the subsequent removal of the full bins, and final disposal of the material at the Orange County Waste and Recycling's Prima Deshecha Landfill. Grit and screening materials are continually collected as part of the preliminary treatment process at both plants. OCSD shall pay for the disposal fee separately to Orange County Waste and Recycling (OCW R). Purchasing/Contracts conducted a bid process based on the specifications developed by 0&M staff. Bids closed April 15, 2015, and two firms responded. Results are shown in the Additional Information section. A new contract must be in place prior to the expiration of the existing contract ending on June 30, 2015. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION This contract was competitively bid with eight (8) prospective bidders with two (2) bid packages being received by OCSD. The companies that bid and their total bid amounts are listed below. Staff recommends Denali Water Solutions be awarded the contract as the lowest responsive and responsible bidder. Page 1 of 2 BIDDER TOTAL COST 1. American Integrated Services, Inc. $ 565,445.00 2. Denali Water Solutions $ 387,905.00 CEQA N/A BUDGET/ PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the OCSD Purchasing Ordinance. This item has been budgeted in Division 830 and 840, object 53020, line 79. Date of AWroval Contract Amount Contlnaency 05/06/15 $387,905.00 $38,790.00(10%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package and attachments: • Service Contract Page 2 of 2 SERVICE CONTRACT Grit&Screenings Removal Specification No. S-2015-668BD THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 9270E-7018 (hereinafter referred to as "OCSD") and Denali Water Solutions with a principal business at 12812 Valley View St. #9, Garden Grove, CA 92845 (hereinafter referred to as "Service Provider') collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to retain the services of Service Provider for Grit & Screenings Removal "Services"; and WHEREAS, OCSD has chosen Service Provider to conduct Services in accordance with Ordinance No. OCSD-47; and WHEREAS, on May 27, 2014, the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Service Provider; and WHEREAS, Service Provider is qualified by virtue of experience, training, and education and expertise to accomplish such Services, NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and Service Provider. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit"A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence: Exhibit "A" Scope of Work/Technical Specifications Exhibit"B" OCSD Safety and Human Resources Policies Exhibit"C" Bid from Service Provider Exhibit"D" Acknowledgement of Insurance Requirements 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. Orange County Sanitation District 1 of g Specification No. S-2015-668BD 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof. 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday, Veterans Day,Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit "A". 1.9 Service Provider shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Service Provider as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation for this project shall not exceed the total amount of Three Hundred Eighty Seven Thousand Nine Hundred Five and 00/00 Dollars ($387,905.00). 3. Payments Payments shall be made upon approval by OCSD Project Manager, or her designee, of invoices submitted for Services completed as described in Exhibit"A". OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 4. Invoices 4.1 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project Manager of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges thereon. Invoices shall include the Purchase Order Number. 4.2 Invoices shall be emailed by the Service Provider to OCSD Accounts Payable at APStaffpOCSD.com and reference the following in the subject line: "INVOICE", the Purchase Order number, the Project Manager, and S-2015-668BD, Grit and Screenings Removal. S. Audit Rights Service Provider agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Service Provider relating to the invoices submitted by Service Provider pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Service Provider shall perform the Services identified in Exhibit "A". Service Provider shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 8. Contract Term The Services provided under this Contract shall commence on July 1, 2015 and continue through June 30, 2016. The term of this Contract may be extended only by written instrument signed by both Parties. The Final Contract term will end on the date when Orange County Sanitation District 2 of 9 Specification No. S-2015�668BD the conversion to a future Service Provider has been completed as described in Section D of Exhibit "A". 9. Renewals 9.1 OCSD may exercise the option to renew the Contract for up to four (4) one-year periods based on the criteria set forth in the specifications Exhibit "A", if mutually acceptable Contract terms can be negotiated. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 9.2 Renewals may be made through the OCSD Purchase Order process. 10. Termination 10.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice, Service Provider shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Service Provider for work performed (cost and fee) to the date of termination. Service Provider expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Service Provider other than for work performed to the date of termination. 10.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Service Provider is not meeting specification requirements, if the level of service is inadequate, or any other default of this Contract. 10.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Service Provider: • if Service Provider becomes insolvent or files a petition under the Bankruptcy Act; or • if Service Provider sells its business; or • if Service Provider breaches any of the terms of this Contract; or • if total amount of compensation exceeds the amount authorized under this Contract. 10.4 All OCSD property in the possession or control of Service Provider shall be returned by Service Provider to OCSD upon demand, or at the termination of this Contract, whichever occurs first. 11. Insurance Service Provider and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "D"). Service Provider shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Service Provider allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 12. Indemnification and Hold Harmless Provision Service Provider shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Service Provider's services under this Contract, or by its subcontractor or by anyone directly or indirectly employed by Service Provider, and whether such damage or injury shall accrue or be discovered before or after the termination of the Orange County Sanitation District 3 of 9 Specification No. S-2015-666BD Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Service Provider shall indemnity, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Service Provider's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Service Provider of or anyone employed by or working under Service Provider. To the maximum extent permitted by law, Service Provider's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are mentless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Service Provider agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 13. Safety Standards and Human Resources(HR) Policies 13.1 OCSD requires all Contractors and Service Providers to follow and ensure their employees and all subcontractors follow all State and Federal regulations as well as OCSD requirements while working at OCSD locations. If during the course of a Contract it is discovered that OCSD policies, safety manuals, or contracts do not comply with State or Federal regulations then the Service Provider is required to follow the most stringent regulatory requirement at no cost to OCSD. Service Provider and all their employees and subcontractors, shall adhere to all applicable OCSD Safety Standards and Human Resources Policies found at: ocsewers.com, "Doc Central" (bottom of page), under "Safety". OCSD's Safety Standards and Human Resources Policies are hereby incorporated by reference as though fully set forth herein in Exhibit B. 13.2 In additional to the requirements stated in 13.1 above, the Service Provider shall adhere to the following OCSD Safety Requirements: SOP-102 PPE, SOP-106 Hearing Conservation Program, SOP-113 Bloodbome Pathogen and SOP-304 Mobile Equipment. 14. Warranties In addition to the Warranties stated in Exhibit "A", the following shall apply: 14.1 Manufacturer's standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract. 14.2 Service Provider's warranty: If, within the 12-month period following completion of its Services, OCSD informs Service Provider that any part of the Services fails to meet the standards required under this Contract, Service Provider shall, within the time agreed to by OCSD and Service Provider, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Service Provider's sole expense. 15. Performance Time is of the essence in the performance of this Contract and the provisions hereof. 16. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Orange County Sanitation District 4 of 9 Specification No. S-2015-668BD Contract. 17. Freight (F.C.B. Destination) Service Provider assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 18. Familiarity with Work By executing this Contract, Service Provider warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Service Provider discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Service Provider's risk, until written instructions are received from OCSD. 19. Regulatory Requirements Service Provider shall perform all work under this Contract in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 20. Licenses. Permits, Ordinances and Regulations Service Provider represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Service Provider. 21. Applicable Laws and Regulations Service Provider shall comply with all applicable federal, state, and local laws, rules, and regulations. Service Provider also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Service Provider's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 22. Contractor's Employees Compensation 22.1 Davis-Bacon Act - Service Provider will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only it the Contract is In excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. 22.2 General Prevailing Rate — OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of the same are on file in the office of the engineer of OCSD. The Service Provider agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site,which shall be made available to any interested party upon request. 22.3 Forfeiture For Violation -Service Provider shall, as a penalty to OCSD, forfeit fifty dollars Orange County Sanitation District 5 of 9 Specification No. S-2015-6689D ($50.00) for each calendar day or portion thereof for each worker paid (either by the Service Provider or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this contract, all in accordance with Section 1775 of the Labor Code of the State of California. 22.4 Apprentices — Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Service Provider shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days or more; or it contracts of specialty contractors not bidding for work through the general or prime Service Provider are two thousand dollars ($2,000.00) or more or five (5) working days or more. 22.5 Workday — In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and the Service Provider shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph 19.2 above. Service Provider shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et seq.) of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty five dollars ($25.00) for each worker employed in the execution of this Contract by Service Provider or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. Service Provider shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Service Provider in connection with the project. 22.6 Registration: Record of Wages: Inspection - Service Provider shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the California Department of Industrial Relations. Service Provider shall maintain accurate payroll records and shall comply with all of the provisions of Labor Code Section 1776, and shall submit records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776. Service Provider shall further comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations §16461(e). 23. South Coast Air Quality Management District's (SCAQMD) Requirements It is Service Provider's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 24. Goveming Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Contract or the performance thereof. 25. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Service Provider to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. Orange County Sanitation District 6 of 9 Specification No. S-2015-668BD 26. Remedies In addition to other remedies available in law or equity, if the Service Provider fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or 0 OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover" by purchasing, or contracting to purchase, substitute goods or Services for those due from Service Provider. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Service Provider as damages the difference between the cost of the substitute goods or Services and the contract price, together with any incidental or consequential damages. 27. Dispute Resolution 27.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an a@emate dispute resolution process. 27.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to Cal'rfomia Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 28. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Altemative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 29. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. 30. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 31. Damage to OCSD's Propertv Any of OCSD's property damaged by Service Provider, any subcontractors or by the personnel of either will be subject to repair or replacement by Service Provider at no cost to OCSD. 32. Disclosure Service Provider agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. Orange County Sanitation District 7 of 9 Specification No. S-2015.668BO 31 Independent Service Provider The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Service Provider an OCSD employee. During the performance of this Agreement, Service Provider and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Service Provider and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD's employees. 34. Limitations upon Subcontracting and Assignment Service Provider shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 35. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Service Provider. 36. Non-Liability of OCSD Officers and Emplovees No officer or employee of OCSD shall be personally liable to Service Provider, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Service Provider or to its successor, or for breach of any obligation for the terms of this Agreement. 37. Read and Understood By signing this Contract, Service Provider represents that he has read and understood the terms and conditions of the Contract. 38. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 39. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 8 of 9 Specification No. S-201"68BD 40. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address or which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Michelle Chewning Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Contractor: Company Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: Chair, Board of Directors Dated: By: Clerk of the Board Dated: By: Contracts/Purchasing Manager COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 9 of 9 Specification No. S-2015-668BD Orange County Sanitation District Grit 8 Screenings Removal Specification No. S-2015-668BD Exhibit"A" Scope of Work/technical Specifications Orange County Sanitation District Specification No. S-2015-668BD ATTACHMENTA SCOPE OF WORK GRIT AND SCREENINGS REMOVAL SPECIFICATION NO.5-2015-MBD A Introduction/General—The Orange County Sanitation District(OCSD) operates and maintains two wastewater treatment plants. Plant No. 1 looted in Fountain Valley, CA and Plant No.2 looted in Huntington Beach, CA. OCSD is committed to protect public health and the environment by operating the treatment plants in accordance with federal,state, and local laws and regulations as established by the Environmental Protection Agency (EPA), the State Water Resources Control Board, the California Regional Water Quality Control Board (CRWQCB), South Coast Air Quality Management OCSD (SCAQMD), the California Department of Health service (DHS), and the National Pollutant Discharge Elimination System (NPDES). Screenings and grit are two (2) types of residual solids from the wastewater treatment process. Screenings are the coarse solids removed by the mechanically cleaned bar screens at the beginning of the wastewater treatment process. These coarse solids on be paper, fecal matter, cloth, wood, or other material. Grit consists of sand and silt or other detritus that is separated from the raw wastewater In an aerated chamber or tank following the screening step. Grit and screenings removed from the Incoming wastewater at each plant are moved via conveyors to hoppers. Grit and screenings collected In the hoppers are deposited in portable bins or trailers which are used for transporting the material to a disposal site. Refer to Attachment K for a Grit and Screenings Analysis. Drying bed material may be from the collection system, plant activities, or outside source. The material in the drying beds may contain grit, grease, sawdust, wood chips, sludge, or other material. The residual solids are dried in the drying beds, loaded into bins by OCSD staff and transported by the Service Provider for disposal. On January 8, 2013, OCSD and Orange County Waste and Recycling (OCWR) entered into a Waste Disposal Agreement(WDA)for OCSD to dispose of biosolids to Prima Deshecha Landfill.The term of the agreement expires on July 31, 2020, which is subject to an additional 10-year renewal. OCSD's grit and screenings were also analyzed,profiled,and accepted by OCWR for disposal. B. Scope of Work—The scope of work required of the Service Provider("Services") is to provide bins to accept delivery of, transport and dispose of the grit and screenings generated from OCSD's Reclamation Plant No. 1 (10944 Ellis Avenue, Fountain Valley,CA)and trailers for Treatment Plant No.2 (22212 Brookhurst Street, Huntington Beach,CA) and drying bed material from Plant No.1. The Service Provider shall dispose of OCSD's residuals at the Orange County Waste and Recycling's Prima Deshecha Landfill(32250 W Pate Avenue,San Juan Capistrano,CA,92675). The service provider agrees to dispose of OCSD's residuals in conformance with applicable Federal,State, and local regulatory requirements.In accordance with Waste Disposal Agreement,OCSD shall pay for the tipping fee separately to OCWR. In an unforeseen event that the OCWR does not accept OCSD's residuals in the Prima Deshecha Landfill due to any reason not limited to the quality of residuals,weather conditions,or construction and emergency events,the Service Provider shall have an alternative landfill site for proper disposal. OCSD's grit and screenings were analyzed, profiled, and accepted by Simi Valley Landfill & Recycling Center (2801 Madera Road,Simi Valley, CA 93065) for disposal. Service provider shall pay all disposal fees at the alternate disposal site and invoice OCSD for those charges(per attachment B-Bid price form). ATTACHMENTA 1 of 6 Specfication No.S-2015-6688D The Service Provider shall furnish portable grit and screenings storage bins for Plant No.1, end dump trailers and one bin for Plant No. 2 and for the drying beds located at Plant No. 1 as described in this specification for the duration of the Contract period. C Management Services—Full management and supervisory Services, including but not limited to, contract administration, supervision, and scheduling of personnel and equipment shall be provided by the Service Provider and be included in the price. The service Provider shall be available 24 hours a day/365 days a year for resolution of any emergency or technical issues. D. Conversion Plan—Prior to the start of the Contract Period,Service Provider shall develop and submit a comprehensive mobilization plan and schedule for conversion of these Services from the current contract/service provider. The plan shall allow for no "down time" of Services as described in these specifications. The conversion shall take place in a timely manner (no more than nine calendar days(, while maintaining the current level of Service, throughout the change from the current contract/service provider. The Service Provider shall be prepared to provide the specified bins and trailers and begin hauling grit and screenings and drying bed material on the first day of the Contract Period,which Is July 1,2015. In the event there is a need for a future conversion to a new/replacement service provider,the Service Provider shall work with the new/replacement Service Provider to facilitate thetransition of hauling duties. E. Service Schedule and Material Quantities—The Service Provider shall be available to handle, store, move,and dispose of the residual solids on a 24 hour per day,7 day per week schedule, including holidays. Service on holidays, weekends, or after hours is Included in the contract price. When OCSD Requires additional Bins or Trailers due to additional Grit & Screening Volume or Drying Bed Material Volume, OCSD is not subject to overtime, addition or premium charges, waiting charges or extra fees. OCSSO will strive to schedule loads at least 24 hours in advance; However, OCSD reserves the right to expedite the schedule for Service within an 8-hour period from notification at no additional cost to OCSD. F. Grit and Screening and Drying Bed Material Quantities—Grit and screening and drying bed material quantities in the table below are based on projected data for Fy2015/16. The actual amounts of grit and screening and drying bed material may vary and are not Guaranteed Minimum Quantities. OCSD reserves the right to change the weekly schedule and the estimated number of truck loads based on solid volume at no additional cost to OCSD.OCSD will strive to provide a two-week notice of schedule change. ATTACHMENT A 2 of 6 Specification No.S-2015.868BD G. Service schedule The hauling schedule for grit and screenings, estimated truckloads and estimated tonnage per year Is shown in the table below., [Fountain CATION SCHEDULE NUMBER OF EST. EST. BINS/TRAILERS TRUCKLOADS TONNAGE PER YEAR PERYEAR ant 1, Monday,Tuesday, 2 bins 365 3,600 Valley Wednesday,Thursday, (l truck/day Tuesday Friday,and Saturday through Saturday) 4 bins(2 trucks on Mondays) Plant 1, Sunday Switching onsite bins 52 N/A Fountain Valley,bin only(No Disposal relocation service Transport) Plant As needed 1,200 Tons/year 60 trucks/year 1200 Drying Bed Material Plant 2, Monday, 1 trailer each haul day 104 900 Huntington Beach Thursday (1 truck/day) Grit Trailer Plant 2, Monday,Wednesday, 1 trailer each haul day 156 1200 Huntington Beach Saturday (1 truck/day) Screening Trailer Plant 2, Approximately every 6 1 bin when called out 12 96 Huntington Beach weeks as needed (1 truck/day) (bin outside dewatering) Currently, an estimated total of 465 wet tons of grit and screenings per month are being collected from bath plants. Drying bed loads are not continuous and may require a minimum of zero to a maximum of 20 loads in one month. The drying beds are only located at Plant 1; however, Plant 2 may have drying beds in the future. Bin Relocation service- The Service Provider shall provide a qualified driver to provide the bin relocation services every Sunday between 6:00 to 9:00 am. The driver shall exchange both loaded bins from the Plant 1 grit and screening building with the delivered empty bins and transfer the loaded bins to the drying bed area for transport on Monday. Deployment area is subject to change. H. Grit and Screening and Divine Bed Material Solids Quality - OCSD's grit and screenings and drying bed material is considered non-hazardous material according to the regulations contained in the Title 22 of the California Administrative Code (CAC), Division 4, Chapter 11. It is possible that the percent solids in the drying beds may change based on the material in the beds and inclement weather. OCSD will provide mulch/sawdust to the service provider in order to increase the solids content if required by the landfill. I. Portable Grit & Screenings Storage Bins and Trailers and Drying Red Hauling — Bins and trailers shall be designed so that liquid or solid materials do not leak or spill from the bins or trailers during loading and transport. The bins and trailers shall be designed to be safely accessible and ATTACHMENT 3of6 SpecificaSon No.S-2015-668BD moveable by OCSD's Staff,and shall conform to all applicable regulatory requirements Including,but not limited to the Occupational Safety and Health Act (OSHA) and United States Department of Transportation (USDOT). The bins and trailers shall be painted black,grey, white or blue and stenciled with a unique number for Identification. The bins and trailers shall be designed with at least 4 drainage holes to drain excess liquid while bins or trailers are stationed In the loading facility. The drainage holes shall be located at each corner or sides of the bin and trailer. The drainage holes shall be a minimum of 2-Inches in diameter and equipped with a full port plug valve. The plug valve must be accessible when the bin or trailer Is in place to clean any debris that may plug the opening. The plug valve or other device must seal the drain tightly during loading and transport so that no liquid orsolld material can leak or spill. The bin or trailers must be equipped with a solid cover to prevent the contents from escaping the bin or trailer during transport. - End Dumps:Must have either: 2 turnbuckles on bottom; • 2 tumbuckles on top(one on each side)and one on bottom; 2 turnbuckles on each side. - Tarp must completely cover and seal the truck with no major holes or rips(over 6 inches). - Trailers MUST be watertight. No holes or tears on body of trailer or seals through which light can be seen through or where there are signs of leakage. Bins and trailers shall be maintained and remain In good working condition throughout the entire term of the contract. Maintenance shall Include, but not limited to, fixing bent and warped doors, replacing seals and gaskets, repainting chipped and peeling paint, correcting door and cover alignment problems, replacing broken latches and valves,fixing or replacing bent cross members,and maintaining bins and trailers so they do not leak. Bins and trailers must be maintained In a condition that they remain safely accessible, in good working order, and moveable by OCSD's staff. Bins and trailers that are in poor condition and/or deemed to be unsafe by OCSD staff pose a safety concem and shall be repaired or replaced at no cost to OCSD prior to using the bins or trailers again at OCSD's facilities. Bins or trailers that are leaking shall be repaired or the contents moved to a properly working Bin or trailer by the Service Provider prior to leaving OCSD facilities at no cost to OCSD. Notification by OCSD to the Service Provider of Bins or trailers that require repair will be made In Writing(via Email or Fax) by OCSD Operations Staff.Due to odor compliance,the Service Provider shall make all necessary repairs and have the full bins ortrailers removed from OCSD within TWO business days. Plant 1 has two identical grit and screening loading bays located In the Bin Loading Building. Plant 2 has two screenings loading bays and two grit loading bays. The screenings bay Is located inside the Screenings Building. The grit loading bays are located Inside the Grit Building. Both the grit and screenings will require 1 trailer at each location. Plant 2 also has 1 grin bin in dewatering. The approximate dimensions of the loading bays are listed In the following table: Clearance from Bottom of Hopper to Width of Bay Length of Bay Bay Floor Plant 1(2 identical) 10 ft. 8 ft.6 in. 25 ft. Plant 2Screenings 11 ft.loin. 12 ft. 54 ft. Bay(Inside) ATTACHMENT 4 of 8 Specification No.S-2015-668BD Plant 2 Grit Bay(Inside) 14 ft.3 in. 12 ft. Plant 2 Grit Bay (dewatering) 7 ft. 10.5 h. 25 ft. Contingency—Upon OCSD request,the Service Provider will provide one(1) bin per plant for on- site storage to be used in an emergency situation. Plant 2 may require a bin that Is 10 ft.(width) by 25 ft.(length)and less than 3.5 ft.height. Drying bed haulers will be loaded by OCSD staff. The height of the trailers used for hauling the material can be no more than 8 feet high to allow for loading. The trailers shall be designed so that liquid or solid materials do not leak or spill from the trailer during loading and transport. The trucks and trailers shall mnform to all applicable regulatory requirements Including, but not limited to the Occupational Safety and Health Act (OSHA) and United States Department of Transportation (USDOT). Trailers must be covered before transporting material. End dump trailers shall have manual locking turnbuckles on their tailgate. J. Safety — The Service Provider and its employees shall comply with OCSD's safety policies, including, but not limited to,wearing protective gear while in the plant industrial areas. Protective gear includes protective footwear comprised of non-skid soles with leather uppers and toe protection, protective eye wear, heavy protection, and safety hard hats. OCSD safety policies are available from OCSD Safety Manager or his designated staff. Lack of safety equipment or failure to use safety equipment may be muse for termination of the contract. A meeting with personnel from OCSD's Safety and Emergency Response Department will be required before work can begin on this contract. OCSD Safety Manager can be contacted through OCSD Human Resources Department. Be advised that confined spaces and hazardous atmosphere exist in OCSD facilities. The Service Provider will designate an Individual to receive hazard awareness training from OCSD. This designated individual shall then train the Service Provider staff on the hazards that exist at OCSD. The Service Provider shall comply with OSHA,State,Federal and Local safety laws. The Service Provider shall provide a list of contacts and their duties for OCSD staff including emergency contact information. The Service Provider shall provide their spill response plan to OCSD prior to start of contract period. Regulatory Requirements—The Service Provider shall perform all work under this contract in strict compliance with applicable federal,state,and local regulatory requirements including, but not limited to 40 CFR 122, 123, 124,257, 258, 260,and 261,Title 22, 23,California Water Codes Division. K. Weieht Tickets The Service provider is required to provide separate weight tickets per bin for grit and screenings and drying bed residual solids at Plant 1, 10844 Ellis Avenue, Fountain Valley, and Plant 2,22212 Brookhurst Street, Huntington Beach, California. The weight tickets shall be provided to OCSD staff every two (2)weeks or upon OCSD's request. L. Tmnsoortabilhv—Include the Following: • Plan and profile views of the disposal bin. • Plan and profile views of the transfer unit. • Plan and profile for Plant 1 bin drainage system. ATTACHMENT A 5 of 6 Specification No.S-2015b68BD • Provide other documentation, If available,to support claims of disposal bin compatibility with applicable Federal, State, and Local regulatory requirements, including, but not limited to OSHA, USDOT, the Code of Federal Regulations (CFR) certification, California Code of Regulations (CCR) validation. Documentation may include video or photos of system as proposed being on-loaded and off-loaded to/from the District's facilities. • Provide drawing and describe the process of on-load and off-load of the system to/from the District's facilities. • Provide a list of items that must be added, disassembled or removed from the bin and/or the transporter for hauling,and • Provide description of design features and other measures taken to prevent liquid leakage and spillage during loading and transport • The Service Provider shall provide a list of contacts and their duties for OCSD staff including emergency contact information. The Service Provider shall provide their spill response plan to OCSD. • The Service Provider shall be prepared to provide the specified bins and trailers and begin hauling grit and screenings and drying bed material on the first day of the Contract period, which is July 1, 2015. The period of June 22, 2015 through June 30, 2015 will be used as a transition period. The Service Provider shall work with the next Service Provider to facilitate the transition of hauling duties. • The Service Provider shall describe the environmental evaluation or site assessment process undertaken in the permitting of each of the disposal sites to be used. Supply information to verify compliance with the requirements of the California Department of Health Services(DHS), the State Water Resources Control Board, the Integrated Waste Management Board, and the State Air Resources Board. M. Driver Wait Time—OCSD will reimburse the service provider for driver wait time that is a result of OCSD caused delays. The service provider must notify the OCSD project manager or designee at the time of delay so that it can be documented and approved by 0CSD. ATTACHMENT A 6 of 6 Specification NO.S-2015-666BD Orange County Sanitation District Grit&Screenings Removal Specification No.5-2015-GSSBD Exhibit"B" OCSD Safety and Human Resources Policies Orange County Sardfeamr DfSOd SpaeiSeadoa No. 5-20154MBD I ORANGE COUNTY SANITATION DISTRICT Risk Management Division Sd* SOP-102 Personal Protective Equipment Program /� APPROVALS Approved by: ?=:c !/ General Manager REVISION HISTORY Rev. Date Written by 0 01272002 Lisa Tomko 1 0322/06 Lisa Tomko 2 11/15/06 James Matte 3 1/5111 Pat Camahan This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Intranet to ensure that they have the latest version. Safety and Heafth POGcy&Pmoetlures 1 of 23 Remsed 1/5/11 Contents 1) Purpose............................................................................ 5 2) Policy................................................................................ 5 3) Definations ............................................................. 5 4) Responsibility.................................................................. 6 a) OCSD Risk Management Division................................. 6 b) Supervisors..................................................................... 7 c) Employees............................................................................ 7 5) Eye and Face Protection................................................. 6 a) Safety Glasses................................................................ 8 b) Plant Process Areas....................................................... 8 c) Maintenance and Automotive Shops............................ 8 d) Laboratory....................................................................... 8 e) Central Generation.......................................................... 9 f) Collections System........................................................ 9 g) Electrical Work................................................................ 9 h) Construction Sites........................................................... 9 i) Service Providers and Visitors........................................ 9 j) Prescription Safety Glasses............................................ 9 k) Safety Goggles................................................................ 10 I) Face Shields.................................................................... 11 6) Head Protection..................................................................... 11 a) Hard Hats........................................................................ 11 Safetysnd HuM Po9ry8 Procedures 20F23 Revised 1/5/11 7) Hand Protection ..................................................................... 12 a) Gloves............................................................................. 12 b) Chemical Handling.......................................................... 12 c) Material Handling............................................................ 13 d) Hot Work......................................................................... 13 e) Medical Response.......................................................... 14 8) Foot Protection.............................................................. 14 a) Safety Shoes and Boots................................................. 14 ) General Requirements............................................ 14 b) Electrical Work................................................................. 15 c) Metatarsal Guards 15 9) High Visibility Clothing......................................................... 15 a) Vest and Jackets............................................................. 15 10) Protective Clothing............................................................... 1s a) General Requirements.................................................... 15 i) Lab Coats................................................................ 15 ii) Aprons.................................................................... 15 iii) Coveralls................................................................. 15 iv) Uniforms ................................................................ 16 b) Blood Bom Pathogens.................................................... 16 c) Thermal Heat Protection................................................. 16 i) Welding Jackets..................................................... 16 ii) Uniforms and Coveralls.......................................... 16 d) Thermal Cold Protection.................................................. 16 e) Off Share ......................................................................... 16 S@W8nd Heats Pa6cy&Pmwdw 30F 23 Revised IM 1 i) Deck Suits............................................................... 16 ii) Personal Floatation Device..................................... 17 11) Hearing Protection ............................................................... 17 a) Reference: Safety SP-106 Hearing Conservation Program 17 12) Fall Protection ............................................................... 17 a) Reference: Safety SP-206.0 Fall Protection Program... 17 13) Respiratory Protection ......................................................... 17 a) Reference: Safety SP-000.0 Respiratory Protection Program 17 14) Energized Electrical Equipment......................................... 17 a) Risk Category 0 .............................................................. 17 b) Risk Category 1 ................................................................. 18 c) Risk Category 2................................................................... 19 d) Risk Category 2'.................................................................. 19 e) Risk Category 3................................................................... 19 f) Risk Category 4.................................................................... 20 15) Other Locations and Construction Sites........................... 21 16) References............................................................................. 21 17) Attachments.................................................................... 21 Safety and HeaM Potty B Procedures 40F23 RowNdI Mt Section Number. SAFETY SOP402 Orange County Sanitation Effective/Revised Date: 12=10 District Supersedes: 11115MG Subject: Personal Protective Equipment Approved by:General Manager 1) PURPOSE The purpose of Orange County Sanitation District (OCSD) Personal Protective Equipment (PPE) Program is to develop standard requirements that must be followed by Employees of the OCSD to safeguard everyone who performs work in or visits our facilities from process related and job task hazards. It is imperative that wherever feasible, engineering controls must be developed and implemented into the design of treatment process and collections systems to provide an extra measure of protection and safety. When engineering controls are not feasible, the OCSD Risk Management Division shall establish a means to analyze plant process and work tasks hazards through their elimination and to determine appropriate personal protection. It is important to note that Personal Protective Equipment is the last line of defense from being injured. The majority of this document contains interpretations and requirements of Title 8 California Code of Regulations, U.S. Coast Guard Federal Requirements for Personal Flotation Devices, ANSI and NIOSH standards. This program will apply to known plant process and work tasks hazards that cannot be eliminated by implementation of administrative or engineering controls. 2) POLICY a) When exposure to known plant process and work tasks hazards cannot be eliminated through such measures as administrative or engineering controls, it will be(OCSD) policy to establish a program that establishes procedures and guidelines to identify preferred standard methods for Personal Protective Equipment and to ensure that all staff, contractors and temporary workers at all sites comply with these standards. The procedures will also include the requirement for proper wearing, cleaning, and storage of PPE that is assigned to OCSD employees and contractors. 3) DEFINITIONS ANSI -American National Standards Institute. ASTM -American Society of Testing Materials. Construction Zone -An area delineated by the General Contractor and /or OCSD Construction site inspector for Construction sites that cannot be physically delineated. The Safety and Heats Polity 8 Procedums 5 OF 23 Revised 1!5111 construction zone shall be defined as the area within 25 feet of the actual construction work in progress. dbA- Noise level indicator, employees who are exposed to a noise level above 85 dbA will be required to wear hearing protection. EH Rated - Electrical Hazard Rated. Engineering Controls- Controls that are designed into a structure that helps mitigate associated hazards; Examples being ventilation, stair ways, handrails, and lighting. IDLH- Immediately Dangerous to Life and Health. An existing Atmospheric Hazard. Maintenance Zone-An area delineated by a Supervisor, Lead Worker or a Confined Space Entry Supervisor for protecting maintenance workers from automobile traffic, intervention from non-authorized persons or personnel and adjacent construction work. OPIM-Other Potentially Infectious Materials. PFD- Personal Flotation Device. Plant Process Area -An area, structure, or piping within OCSD facilities where wastewater, bio-solids, digester gas and grit are collected, treated stored, transported, or discharged. PPE - Personal Protective Equipment. 4) RESPONSIBILITIES When work environment and job task hazards have not been eliminated by the implementation of both engineering and administrative controls, it will be the responsibility of the Risk Management Division to complete a PPE Hazard Assessment Certification Form and work with the affected division(s) to determine what type of personal protective equipment provides the best protection from the remaining hazards. (Note) PPE Hazard Assessment Certification Forms can be obtained by logging on to the OCSD intranet Admin Services, Policy and Procedures, Safety Share Point. Once the PPE has been determined, it shall be the responsibility of the employee's management to insure that all necessary personal protective equipment is readily obtainable. It will also be the responsibility of the employee's management to provide initial training to their employees on the proper use and maintenance of required personal protective equipment. Maintenance of this policy to include revisions and additions will be the responsibility of the Risk Management Division. Once training on SAFETY SOP-102 has been provided to all OCSD employees, it will be the responsibility of management staff to ensure that their employees use and maintain all the PPE that is required under this policy. It will also be the responsibility of management to enforce the PPE Program in accordance with the established disciplinary process. a) OCSD Risk Management Division Safety and Health Policy&Procedures 6 OF 23 Revised 1011 i) The Risk Management Division in coordination with management shall identify areas, processes and specific job activities in which personal protective equipment is used or necessary due to physical or chemical hazards. ii) The Safety and Health Division shall assess identified hazards that may require PPE for a process and/or job task. Assessments shall include a review of the following: 1) The process area. 2) Electrical hazards of the process area and job task. 3) The physical hazards of the process area and job task. 4) The chemical hazards of the process area and job task. 5) The combined physical and chemical hazards of the process and job task. iii) The Risk Management Division shall designate appropriate personal protective equipment. iv) The Risk Management Division shall communicate PPE requirements to affected departments and personnel. Communication shall be in the form of: 1) A written meri o 2) SAFE Bulletin 3) Risk Management Division web-site 4) Safety Tailgate meeting 5) Safety training classes v) The Risk Management Division shall complete the appropriate paperwork to upgrade current and needed PPE to the warehouse stock. Substitution of OCSD Warehouse issued PPE is NOT allowed without the written permission of the Risk Management Division Supervisor. Request for PPE items and equipment shall include the following information : 1) The type and manufacturer of the requested equipment. 2) An estimate of the quantity of PPE to be stocked (monthly and annual usage). 3) What, if any, existing stocks of PPE will be affected by the new request... b) Supervisors i) Supervision/Management shall notify the Risk Management Division of new or changed operations and/or the addition of new chemicals. ii) Supervision shall attend training classes on the requirements of Safety SOP-102 Personal Protective Equipment Program. iii) Supervision shall insure that all their employees are equipped with the necessary Personal Protective Equipment and other safety equipment needed to perform their jobs in a safe manner. iv) Shall enforce the wearing of PPE. v) Shall provide training to their employees on the proper wearing, storing, and cleaning of personal protective equipment. c) Employees i) Shall wear and use PPE properly. Safety and Health Policy&Procedures 7 OF 23 Revised 115111 ii) Shall clean, maintain and properly store their PPE. ii!) Shall replace PPE when it has reached the end of usefulness or is damaged and unusable. iv) Shall report any deficiencies in PPE. v) Adhere to the PPE requirements on construction site even if they are more stringent than OCSD requirements. 5) EYE AND FACE PROTECTION a) Safety Glasses (i) Safety glasses shall meet the ANSI Z-87 standard, side shields shall be non removal. (ii) Damaged safety glasses shall be discarded and replaced promptly. (iii)Safety goggles meeting the impact requirements of ANSI Z-87.1 may be worn in lieu of safety glasses with side shields. (iv)Chemical splash goggles shall be worn in places or when performing a job task where a liquid splash hazard is present. b) Plant Process i) Plant process areas are defined as preliminary, primary, secondary and solids handling processes where the treatment of wastewater and the recovery of solids are being conducted. Safety glasses with fixed non removable side shields shall be worn at all times while in all process areas. Process areas do not include (unless there is an exposure to a hazard): (1) Parking lots (2) Office areas (3) Break areas (4) Control rooms. (5) In the cabs of vehicles. (6) Perimeter roads c) Maintenance and Automotive Shops i) Safety glasses with side shields shall be worn at all, times when a job has the potential to create dusts, flying partials and/or objects. It is important to note that the use of face shields in conjunction with safety glasses or goggles may also be required when performing job task that produce flying particulates. ii) Safety glasses shall be worn for any job task that poses a potential for an eye injury. d) Laboratory i) Safety glasses with side shields shall be worn at all times while working with waste water or any hazardous material in the laboratory. ii) Chemical Splash goggles shall be worn in conjunction with safety glasses when liquids such as acids or caustics are being handled. Safety glasses are also required during the following operations: (1) Working with contaminated glassware and the autoclave. Safety and Health Policy&Procedures 8 OF 73 Revised 1/5/11 e) Central Generation i) Safety glasses with side shields shall be worn at all times while in the Central Generation building except in the control room, maintenance office and office/break areas. f) Collections Systems i) Safety glasses with side shields shall be worn at all times while in District pump stations. Splash goggles shall be used when shoveling or vactoring grit from sewer lines. Both splash goggles and/or face shields will be required when working with chemical feed systems and when performing pump maintenance, line disconnections and replacement work. g) Construction Sites i) Safety glasses with side shields shall be worn at all times while on construction sites. h) Service Providers and Visitors i) Safety glasses with side shields shall be worn at all times in the following circumstances: (1)All visitors who participate in walking tours of district construction sites, plant processes and/or collection systems. (2) Contract employees whose job task requires them to perform work in the Plant Process area, Construction Sites, Collections Facilities and Maintenance Shops when they are working in close proximity to grinding work, degreasing/cleaning tanks, cylinders and air operated equipment. i) Prescription Safety Glasses i) This section applies to employees who require vision correction. Prescription eyewear may be obtained using the process described as following: (1) Prescription safety glasses shall be provided annually to District employees who require vision correction. Participating employees must obtain their prescription safety glasses through the Risk Management Division in accordance with this procedure. (2) Upon initial employment orjob transfer to a Division where their job responsibilities requires them to perform tasks that requires the use of safety glasses or work in an area that requires safety glasses. (3) The employee shall be entitled to one pair of clear lenses and one pair of either shaded (sunglasses) lenses or photo gray lenses per fiscal year. (4) Prescription safety glasses shall be equipped with permanent side shields. (5) In the event employee's prescription safety glasses are lost, stolen or damaged beyond repair, the employee shall fill out a lost property document. This document shall be signed by their supervisor and forwarded to the Risk Management Division along with their damaged safety glasses. The Risk Safety and Health Policy&Procedures 9 OF 23 Revised 1/5/11 Management Division shall make the determination to replace the employee's safety glasses or require the employee to replace them at their own cost. ii) Process (1) Employees shall provide a recent prescription for eye glasses, prescribed by their optometrist. Recent means less than 12 months old. (2) Employees must complete an "Authorization for Safety Glasses" form and attach a copy of their prescription to the form. The employee's supervisor must sign the completed form. (3) Payday Wednesdays are the scheduled days that the Vendor for safety glasses will be on site for both Plants One and Two. Plant One Safety Trailer conference room starting at 10:30 AM to 12:30 PM and Plant Two Operations Center HR office 1:00 PM to 3:00 PM, services rendered on a first come first served basis. (4) Return the completed form and prescription to the Plant# 1 Risk Management Office. (5) The employee will be noted of the receipt of their paperwork and if approved informed of the next onsite visit by the prescription safety glasses vendor. The onsite vendor will have the necessary paperwork to order the safety glasses. (6) Safety Glasses orders are usually completed and delivered to the Plant One Safety trailers within two weeks. Employees will be noted by the Risk Management Division when their safety glasses arrive. (7) It is the responsibility of the employee to retrieve their safety glasses no later than 14 days after they have been noted. (8) Unclaimed Safety Glasses will be sent back to the vendor. The employee who ordered them will have to retrieve them from the vendor during non-work hours. j) Safety Goggles i) Safety goggles may be obtained from the Warehouse. Warehouse provided safety goggles are both impact and chemical splash resistant and meet the ANSI Z-87.1 standard for impact. ii) Chemical Splash Safety goggles shall be worn: (1) In all bulk chemical containment areas. (2) Scrubber complexes. (3) During chemical handling and bulk deliveries. (4) During water, sludge, chemical and air line breaking activities. (5) During chemical, pump maintenance work. (6) When parts cleaning / Dip tank operations. (7) When parts cleaning using high pressure water or steam. (8) Consolidation of hazardous waste. (9) Chemical Handling areas. iii) Impact Resistant Safety goggles shall be worn (1) When grinding, chipping and drilling Sony end Heab Poricy&Prowdui 10 OF 23 Revieetl 1W 1 (2) During jobs that generate dust (3) In all areas posted as "Goggles Required" (4) When welding appropriate welding goggles shall be wom. k) Face Shields i) Face shields when used as PPE in a laboratory environment shall be wom to protect the users face and eyes from coming into contact with splashed liquids such as strong acids and other chemicals, sludge's and raw wastewater. Face shields shall always be used in conjunction with safety glasses and or goggles. Face shields when used without safety glasses or goggles do not provide adequate protection.. ii) Face shields shall be wom in all areas posted and while performing maintenance tasks where the user could be exposed to the following hazards: (1) Areas where liquid splashes are likely or when working with hazardous materials, waste water or sludge. (2) Grinding, welding, cutting and chipping activities. (3) Maintenance on hot water and steam lines. (4) Parts cleaning activities. (5) Maintenance on pressurized system that are over 2 pounds per square inch pressure. (6) When performing maintenance on solids handling equipment. (7) When performing plant wash down activities. 6) HEAD PROTECTION a) Hard Hats i) All hard hats purchased for District employees shall be stamped with the ANSI Z- 89.1 and be Type 1 Class E, which is rated for electrical shock. Hard hats shall not be modified, painted or coated with any material or wom backwards, they shall be kept sanitary and in good condition. Hard hats that are faded, cracked, chipped or deformed shall be disposed of and replaced with a new hard hat promptly. ii) Only manufacture approved head covering and sweat bands designed to be wom in conjunction with hard hats will be allowed to be wom under the hardhat. Wearing baseball caps, beanies or bandanna's under hardhats is prohibited. iii) Hard hats shall be wom in the following areas: (1) Plant Process areas. (2) Construction sites. (3) Construction site shall be delineated by the Contractor and /or Construction Management. (4) In areas where physical delineation is not feasible, the construction site shall be defined as the area within 25 feet of any construction work that is in progress. (5) Confined Space entries when designated in the job hazard analysis (JHA). (6) During electrical work when the hard hat is an integral part of electrical personal protective equipment. Safety and HeaBh Policy&Procedures 11 OF 23 Revised 1&11 (7) During welding operations if the hard hat is an integral part of the welding hood. (8) Pump station pump room. (9) When performing work around cranes, hoist or any other type of apparatus that can lift a suspended load more than 4 feet off the ground. (10)When performing work around elevated work platforms. Including walkways, catwalks, scissor, boom and forklifts. 7) HAND PROTECTION a) Gloves i) Gloves shall at a minimum meet the ASTM standards for which they were designed. The warehouse shall stock gloves recommended by the Risk Management Division. Gloves shall be worn by employees to reduce their risk of exposure to the hazards listed below. (1) Skin absorption of harmful substances such as chemicals, hazardous waste, un- treated and treated sewer sledges grit, rags, bio solids, wastewater and blood- bome pathogens. (2) Materials that have the potential for sharp edges, burs, splinters, nails or other hazards that can cut or puncture the skin. (3) Thermal bums due to welding, torch cutting, line steaming work and electrical work. (4) Electrical shock and burns from working with electrical voltages above 480 volts. b) Chemical Handling i) Neoprene rubber gloves are the only warehouse stocked gloves that are designed for chemical handling. No other warehouse stocked glove other than neoprene gloves shall be used for the following task: (1) Collecting chemical samples. (2) Assisting in bulk chemical deliveries. (3) Transferring chemicals into smaller containers. (4) Performing maintenance task on chemical storage vessels, pumps, filling, dispensing lines and mixing vessels. ii) Chemical handling gloves shall be inspected for holes, tears, worn and or discolored areas on the surface of the gloves, before they are used to handle chemicals. Defective chemical gloves shall be rendered un-usable and disposed of immediately iii) To prevent chemicals form coming into contact with the end users arms, the bottom of chemical gloves shall be cuffed or rolled in a manner that will capture any chemical that runs down the glove. iv) Chemical gloves shall be rinsed with clean water after each use, doing so will prevent residual chemical for coming into contact with unprotected skin, tools, and other materials. (Note) eyewash stations are not to be used to rinse chemical gloves. v) Chemical gloves have a longevity span of several years if they are properly maintained. Safety and Health Policy&Procedures 12 OF 23 Revised 115/11 vi) One pair of neoprene gloves shall be stocked inside the chemical handling boxes and are only for the use of District employees. Once an employee removes and uses these gloves he or she shall be responsible for replacing them with new ones, used gloves shall not be placed back inside the chemical handling boxes. vii)To reduce exposure to pathogens in wastewater, sludge's and biosolids, disposable latex gloves should be used when collecting sludge and biosolids samples. Latex gloves shall be disposed of after each use. viii)The OCSD Warehouse provided latex gloves shall be powder free. Documented cases provide proof that the powder used to preserve latex gloves can cause skin dermatitis to end users who frequently use powder preserved latex gloves. ix) End users may experience and allergic reaction (red skin rash)when using latex gloves. If a rash occurs, end user must discontinue using latex gloves. Gloves constructed of nitrile or neoprene rubber are warehouse stocked items and available for latex sensitive end users. x) Rubber Playtex gloves should be used when handling plant water hoses and working inside the rag and grit facilities. These gloves can be sanitized after use, however best practice is to dispose of these gloves after use. c) Material Handling i) Working in the plant processes will require employees to use several types of material handling gloves during the course of their work activities. The purpose of material handling gloves is to protect the user from cuts, abrasions and puncture wounds. ii) Leather and rubber coated cotton gloves function best when handling materials that have the potential to cause cuts, abrasions or puncture wounds to unprotected hands, they also provide minimal thermal protection, however they must not be used for welding or torch cutting operations. iii) Leather gloves shall not be used when collecting sludge and biosolids samples, or during cleanup activities using plant water. Saturated leather gloves will increase the contact time with pathogens in sludge and wastewater with the potential to increase the risk of infection through cuts or abrasions on the hands. Leather gloves cannot be disinfected without the risk of permanent damage to the gloves. iv) Leather and rubber coated cotton gloves shall be disposed of once they develop holes or stitching defects. v) Gloves designed for material handling and protection from wastewater and sludge's, shall never be used for chemical handling operations of any kind. d) Hot Work i) Performing hot work activities such as welding, brazing, torch cutting, metal grinding or heating metal parts will require the use of heat resistant and/or insolated gloves; suitable materials can he thick leather/cow hide or Nomex and heavy cotton gloves. Safety and Health Perky&Procedures 13 OF 23 Revised Wit Standard type leather gloves used primarily for material handling can also be used when performing grinding and light torch work. e) Medical Response i) Nitrile gloves purchased for Medical Team use shall only be distributed to and used by employees who are on the District Medical Team or employees who have received first aid training and are 8) Foot Protection a) Safety Shoes i) General Requirements (1) District will provide one pair of footwear per year to each eligible employee who belongs to the following divisions: (a) 230, 260, 330, 340, 760, 830, 840, 850, and 860 (2) Eligible employees who work for the Divisions listed below shall receive one pair of boots every two years: (a) 250, 750, 770, 790, and 890 (3) Administrative, clerical support and intern staff working for the Divisions noted above are not considered eligible staff unless their Supervisors forward a formal request to the Risk Management Division Supervisor justifying the employees need for safety boots, the final decision shall be made by the Risk Management Division Supervisor. (4) District employees who receive work boots shall be required to wear them when performing their work duties, failure to do so may result in disciplinary action. ii) OCSD supplied foot protection shall at the minimum met the following safety requirements: (1) Constructed of materials suitable for its intended exposure and shall provide protection, comfort and wear ability. (2) Completely enclose the foot. (3) Protective toe cap. (4) Slip resistant soles. (5) Heal height of one inch or less. iii) In addition to the minimum requirements noted above, Safety Shoes/Boots for Collections Division 340 staff shall meet the additional following requirements: (1) Puncture resistant soles (preferred) (2) EH electrically rated. iv) In addition to the minimum requirements noted above, Safety Shoes/Boots for Operations and Maintenance Divisions, 830, 840, 850 and 860 staff shall be EH electrically rated. v) Metatarsal guards shall be worn by OCSD employees, when operating overhead cranes, hoist or any other type of apparatus that can lift a suspended load more than 4 feet off the ground. Sa"end Heafth Poricy 8 Prowdums 14 OF 23 Revised 1011 vi) Visitors who will be participating in tours of the plant processes shall at a minimum meet the following requirements: (a) Completely enclose the foot. 9) HIGH VISIBILITY CLOTHING a) Vest and Jackets i) General Requirements (1) All high visibility vest and jackets purchased by the OCSD shall meet the requirements of the ANSI 107-1999 standard for Class Two and Three High Visibility Safety Apparel. (2) High visibility vests and jackets shall be worn by employees whose job task requires them to enter into and perform work inside plant process, and construction areas. Class Two and Three lime green/yellow high visibility vests shall be warehouse stocked items;jackets are supplied by individual division. Old faded and tom safety vest shall be disposed of and replaced with new vest. Safety vest shall not be modified by removing sleeves and reflective material or by adding pins, buttons or patches. ii) Process Areas (1) When working inside process areas that requires OCSD employees to interact with vehicle traffic and heavy equipment operations. OSCD employees shall wear Class Two lime green/yellow vests. iii) Maintenance Zones (1) OCSD employees shall wear Class Three high visibility lime greentyellow vests or jacket when working within maintenance zones located in public parking lots, on streets and roadways where traffic control has been implemented to protect OCSD employees from vehicle traffic. 10) PROTECTIVE CLOTHING a) General Requirements i) Lab coats shall be worn in conjunction with other protective equipment such as gloves and safety glasses by employees whose job task requires them to work with samples of biological material being waste water, raw and processed sludge's. ii) Aprons constructed of cotton, coated paper should be worn over district issued uniforms, or lab coats when collecting waste water and sludge samples from pumps or lines that are pressurized. iii) Coveralls constructed of cotton or coated paper should be worn in conjunction with other protective garments and equipment when working on waste water and sludge pumps and piping, entering into confined spaces. iv) Uniforms issued by OCSD are designed to provide a level of personal protection from biological hazards; however, uniforms should be considered as minimal protection and should be worn in conjunction with other protective clothing noted above. District employees who are eligible for issued uniforms shall wear them Safety and Health Policy&Procedures 15 OF 23 Revised 1/5/11 during the performance of their job duties. Uniforms are considered PPE so damaged uniforms parts shall be returned to the supplier. The Supplier must promptly replace damaged uniforms with undamaged uniforms. Uniform that are worn, tattered or have patched holes will not be acceptable as replacements. Soiled uniforms should not be laundered at home. b) Blood Bome Pathogens i) Appropriate protective clothing such as gowns, laboratory coats and coveralls, that does not permit blood or OPIM (other potentially infectious materials) to pass through to or reach employee's work clothes, undergarments, or skin shall be readily accessible and issued to employees who are recognized members of the Districts Medical Response Team. c) Thermal Heat Protection i) Jackets constructed of leather shall be worn in conjunction with other protective equipment such as gloves, boots, welding goggles, helmets and/or face shields, by employees whose job task requires them to weld, grind, or torch cut metals. ii) Uniforms, Coveralls and work jackets constructed of flame and heat resistant cotton material shall be worn by employees whose job task requires them to work on or operate working boilers, hot water tanks and piping, steam lines, dip vats or tanks containing hot water mixed with chemical cleaners, methane gas compressors, electrical equipment, methane gas, diesel and/or gasoline powered engines. Uniforms made of the following materials are not suitable for the above noted job task: (1) Acetate. (2) Nylon. (3) Polyester. (4) Rayon. d)Thermal Cold Protection i) District employees whose job task requires them to perform job task in both cold and wet environments shall be provided with insolated jackets and rain suits. e) Off-Shore i) Type V personal floatation device deck suits that provide protection from hypothermia shall be provided to district personnel who are assigned to work on the District owned or contracted sea going vessels, water-proof insolated gloves, hoods or hats shall also be provided. ii) Type I offshore life jacket/ (PFD) Personal Flotation Device a shall be provided for every District employee whose job task requires them to perform work on board boats, barges, lakes, rivers, or other bodies of water where there is a danger of falling into water. PFD's shall comply with the following requirements: (1) Coast Guard approved. (2) Kept in good serviceable condition. Safety and Health Policy&Procedures 16 OF 23 Revised 115111 (3) Must be the appropriate size for the attended user. (4) Must be readily accessible. (5) Shall not be stowed in plastic bags, locked compartments or have materials stowed on top of them. iii) Non swimmers shall be required to wear life jackets when the boat or barge is underway. All employees who perform job tasks that require them to work off the swim step reach, or step over the side of the boat will be required to wear life jackets. Rough seas will also require all onboard to wear life jackets. iv) OCSD employees who work where there is potential for them to fall into a body of water and drown are required to wear a life jacket as well. 11)HEARING PROTECTION a) Reference Safety SOP-106 Hearing Conservation Program Section 4) Procedure Sub Section i) Hearing Protection Selection. 12)FALL PROTECTION a) Reference: Safety SOP-206 Fall Protection Program Sections. i) FALL ARREST EQUIPMENT, Sub Section b) Personal Fall Protection Systems. ii) FALL ARREST EQUIPMENT Sub Section c) Full Body Harnesses. iii) FALL ARREST EQUIPMENT Sub Section d) Lanyards. iv) FALL ARREST EQUIPMENT Sub Section e) Snap Hooks. v) FALL ARREST EQUIPMENT Sub Section f) Life lines. vi) FALL ARREST EQUIPMENT Sub Section g) Anchor Points. 13)RESPIRATORY PROTECTION a) Reference: Safety SOP-109 Respiratory Protection Program Section 5) Hazard Assessment Sub sections a)-(4) through d). b) Section 6) Respiratory Selection Sub sections a) and b). 14)ENERGIZED ELECTRICAL EQUIPMENT a) General i) Employees working in areas where electrical hazards are present shall be provided with and shall use protective equipment that is designed and constructed for the for the work to be performed and the specific part of the body to be protected. (1) Personal Protective Equipment shall be required when employees are working on electrical equipment that is energized, and work is being conducted within the Flash Protection Boundary. (2) Required Personal Protective Equipment required to minimize the possibility of electric shock to OCSD employees shall be determined based on the voltage (hazard risk category) they will be exposed to. ii) Hazard Risk Category (0) Operating a 480 volt circuit breaker or fused switch with the electrical panel door closed (1) Protective Clothing Required Selety end HeeMh Policy B Pretedures 17 OF 23 Revised 115/11 (a) Long sleeve shirts and pants constructed of non-melting, non-flammable materials examples being untreated cotton, wool, rayon, silk or blends of these materials (ASTM F 1506-00). (2) Face and Eye Protection. (a) Safety glasses with side shields and or safety goggles that meet ANSI Z87.1 requirements. (3) Hand Protection. (a) No hand protection is required when conducting circuit breaker or fuse switch operation with the circuit breaker cover in place; however, when the circuit breaker covers are removed, an insulated rubber gloves rated for rated for a hazard risk category (1) shall be used. (4) Hearing Protection. (a) Ear plugs with an NRR of 32 disables. (5) Head Protection. (a) Class one H rated hard hat. (6) Foot Protection. (a) Leather work shoe/boot capable of providing protection against electrical circuits of 600 volts. iii) Hazard Risk Category (1) Operating a 480 volt circuit breaker or fused switch with the electrical panel door open and or voltage testing 120 volt controlled circuits. (1) Protective Clothing Required. (a) Insulated flame retardant Long sleeve shirt, pants or coveralls that have a minimum arc flash rating Arc Rating of 4. Coveralls shall be worn over cotton or other natural fiber uniforms. (2) Face and Eye Protection. (a) Face shield with minimum Arc Rating of 4 and Safety glasses with side shields that meet ANSI Z87.1 requirements. (3) Hand Protection. (a) Class 00 or 0 insolated rubber gloves with leather protectors rated for 500 and 1000 volts respectively. Rubber gloves shall be % inch longer than the leather protector glove. (4) Hearing Protection. (a) Ear plugs with an NRR of 32 disables. (5) Head Protection. (a) Class one H rated hard hat- (6) Foot Protection. (a) Leather work shoe / boot capable of providing protection against electrical circuits of 600 volts. iv) Hazard Risk Category (2) Operating a 13.8 KV switch with the electrical panel door closed. Safely and Hearth Policy&Procedures 18 OF 23 Revised 1/5/11 (1) Protective Clothing Required. (a)Arc flash suit with a minimum Arc Rating of 8 cal. (2) Face and Eye Protection. (a) Face shield with a minimum Arc Rating of 8, safety glasses with side shields that meet ANSI Z87.1 requirements. (3) Hand Protection. (a) Class 2 rubber insolated gloves rated for 17000 volts shall be 2 inches longer than the leather protector glove. (4) Hearing Protection. (a) Ear plugs with a NRR OF 32 disables. (5) Head Protection. (a) Class one H rated hard hat. (6) Foot Protection. (a) EH electrically rated leather work shoe / boot capable of providing protection against electrical circuits of 600 volts. v) Hazard Risk Category (2') Voltage testing of 240 to 600 volts. (1) Required Personal Peotectice Equipment is the same for Hazard Risk Category (2) with the exception of additional protection for the head and face being the use of an 8 cal arc rated flash suit hood. vi) Hazard Risk Category (3) Opened hinged door on electrical panel where an electrician will be exposed to energized parts or equipment between 1 KV and 38KV. (1) Protective Clothing Required. (a) Insulated flame retardant multi-layered coat, coveralls and gloves that have a minimum Protective arc rated flash protection of 25 Cal/Cm2 and meet both ASTM F 1506-02a and NFPA 70E standards. Arc flash coats and coveralls shall be wom over cotton or other natural fiber uniforms. (2) Face and Eye Protection. (a) Arc flash hoods shall be fitted with a protective face plate or shield, covered with insulated flame retardant multi-layered material and have a minimum are flash rating of 25 Cal/Cm2. Safety glasses with side shields that meet ANSI Z87.1 requirements. (3) Hand Protection. (a) Class 2 rubber insolated gloves rated for 17000 volts shall be 2 inches longer than the leather protector glove. (4) Hearing Protection. (a) Ear plugs with an NRR of 32 decibels (5) Head Protection (a) Arc flash hoods with a minimum arc flash rating of 25 Cal/Cm2. (b) Arc flash hoods shall be covered with insulated flame retardant multi-layered material that protects the users head face and neck. Safety and Hearth Policy B Piamdum 79OF23 Revised 1r5M1 (c) Arc flash hoods shall be worn in conjunction with a class one H rated hard hat. (6) Foot Protection. (a) Leather work shoe/boot capable of withstanding the application of 14,000 volts. vii) Hazard Risk Category (4) Inserting or removing circuit breakers on equipment 1 KV to 38 KV. (1) Protective Clothing Required. (a) Insulated flame retardant multi-layered coattsuit and gloves that have a minimum Protective arc rated flash of 40CaYCm2 and meet both ASTM F 1506-02a and NFPA 70E standards. Are flash suits and coveralls shall be worn over cotton or other natural fiber uniforms. (2) Face and Eye Protection. (a)Arc flash hoods shall be fitted with a protective face plate or shield, covered with an insulated flame retardant mufti-layered material and have a minimum arc flash rating of 40 Cal/Cm2. Safety glasses with side shields that meet ANSI Z87.1 requirements. (3) Hand Protection. (a) Class 2 rubber insolated gloves rated for 17000 volts shall be 2 inches longer than the leather protector glove. (4) Hearing Protection. (a) Ear plugs with an NRR of 32 decibels. (5) Head Protection. (a) Arc flash hoods with a minimum arc flash rating of 40 Cal/Cm2. (b) Arc flash hoods shall be covered with insulated flame retardant multi-layered material that protects the users head face and neck. (c) Arc flash hoods shall be worn in conjunction with a class one H rated hard hat. (6) Foot Protection. (a) Leather work shoe /boot capable of withstanding the application of 14,000 volts. viii)Electrical Personal Protective Equipment Maintenance. (a)All garments used to protect Division 860 from electrical voltages above 12000 volts shall be kept clean free from grease, oil, soils and flammable contaminates. (b) No garments used to protect Division 860 from electrical voltages above 12000 volts shall be used after being exposed to an arc flash. (c) Insolated rubber gloves shall be used in conjunction with leather protector gloves to keep soft rubber from being damaged. Safety and Health Policy B Procedures 20 OF 23 Revised 115/11 (d) Insolated rubber gloves shall be maintained in a safe reliable condition and inspected for tears and or holes before each use. (a) Insolated rubber gloves that are damaged shall be removed from service rendered un-usable and disposed of. (f) Voltage insulation test shall be conducted on insolated rubber gloves before they are issued and every six months after. Inspections shall be performed by laboratory that follows ASTM requirements for inspection of rubber insolated gloves. (g) Protective face plate attached to arc flash hoods shall be kept in good condition free from scratches. 15) OTHER LOCATIONS and CONSTRUCTION SITES a) During large Capital Improvement Projects (CIP) or Owner Controlled Insurance Projects (OCIP) sections of OCSD facilities will be given to contractors for them to control. When a section of OCSD facility or property is given to contractor for them to build or renovate they are also given the responsibility for ensure their employees and visitors are safe while on the project site. If a contractor set more stringent PPE requirements than the current OCSD requirements then all OCSD employees who enter the project work area are required to follow the contractor's requirements. b) At no time will OCSD employees be allowed to follow less stringent requirements than this policy for PPE either at another location or on a construction site. 16)REFERENCES a) Title 8 California Code of Regulations Article 105, Control of Noise Exposure. b) Title 8 California Code of Regulations Article 1598 Traffic Control for Public Streets and Highways. c) Title 8 California Code of Regulations Article 1519 Sanitation. d) Title 8 California Code of Regulations Article 5193 Blood bome Pathogens Section (4)(A)- (E) Personal Protective Equipment, Section (G) Gloves. Section (H) Mask, Eye Protection Face Shields and Respirators. e) U.S. Coast Guard Federal Requirements for Recreational boats, personal flotation devices (PFDs). f) American National Standards Institute. g) ANSI Z89.1 1997 Industrial Head protection. h) ANSI Z87.1 1986 Eye and face protection. i) ANSI Z41. 1991 Personal protection protective footwear. j) ANSI/ISEA 107.1999 High visibility safety apparel. k) ASTM F 1506-02a and NFPA 70E standards. 17)ATTACHMENTS d) Attachment A—Plant 1 PPE Map. a) Attachment B—Plant 2 PPE Map. Safety and Health Policy&Procedures 21 OF 23 Revised 1/5111 fi _'..5 10 R y, 8 35 17 1 _ N ...,.,,.a..,w,..- S .,...,.:...,o.... ,,,....: RECLAMATION PLANT 1 NON-PPE LOCATIONS ORANGE COUNTY SiAWITATION DISTR6�; i' Engineering - Geographic Information Systems Poaez c„a.mv� NoroPr•t w:nbons Pmposetl Sleuelvres ""' ^"'^'^" Tunnnelb ....•r.-.... Ra/aN and Hearth%Hl A Pmredume 99 of 9.S Revived 11911 0 P:an:3 Lunlwna Ware Peanv:PnhP.w(::u9 .IIi NOlmprnM. Fni -_ v![o-.yaea:ra:e.v aM{mWn9'.vts ru:Nf _ r 3 Cte'r'a Caen axmarM3ly �o� 4 L �P,r.•„wa L3 Z 1 ., e.a�„�.,ka.a.ss.oro F-m mrm�m: r d - Pi0 Uvo nU,Cei:3uskr5�nry wN:mm z � - � "=�N� SR iDane zfay.:m,twe mm"L ca:tnws 4 on - r�rn issr 5 / - r ! N i WE 3 a 3 , TREATMENT PLANT 2 NON-PPE LOCATIONS ORANGE COUNTY SrTAN"�'ATION DISTRICT Engineering - G-ographic Information Systems P.r. Safety and Health Policy&Procedures 23 OF 23 Revised 1/5111 ORANGE COUNTY SANITATION DISTRICT Safety and Health Division SaW SOP-106 Hearing Conservation Program APPROVALS Approved bye Date: I - Z7 -oy REVISION HISTORY Rev. Date Written By Approval 1 0127109 W. Bauer J. Ruth I This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Intranet to ensure that they have the latest version. Safety Policy and Procedures 1 of 11 Revised 0127109 Contents 1) Purpose.............................................................................3 2) Policy.................................................................................3 3) Definitions..........................................................................3 4) Procedure..........................................................................4 a) Requirements....................................................................4 b) Noise standard..................................................................4 c) Responsibilites..................................................................5 d) Exposure Monitoring and Assessments...........................6 e) Employee Training............................................................7 f)Audiometric Testng..........................................................7 g) Equipment Purchases.......................................................9 h) Program Administration....................................................9 ) Hearing Protection Selection..........................................10 j) Determining Hearing Protection Attenuation..................11 5) REFERENCES/RELATED LINKS.................................11 6) ATTACHMENTS.............................................................11 a) None................................................................................11 Sakry Pormy and Pmooduras 20F11 Revked 01R7= Section Number: SAFETY SOP-106 Orange County Sanitation Effective I Revised Date: 06118108 District Supersedes: New Subject: Hearing Conservation Program Approved by: 1) PURPOSE a) The purpose of this policy is to establish guidelines for use by OCSD staff in preventing employees from developing noise induced hearing loss on the job. This is done through equipment selection, exposure assessments,training, and annual hearing tests. 2) POLICY a) It is Orange County Sanitation District's (OCSD)policy to establish procedures and guidelines to identify preferred, standard methods for controlling employee noise exposures and to ensure that all staff and temporary workers at all sites comply with these standards. 3) DEFINITIONS Action Level., An 8-hour time weighted average of 85 decibels measured on the A-scale, slow response, or equivalently, a dose of 50 percent. Audiogram: A chart, graph, or table resulting from an audiometric test showing an individual's hearing threshold levels as a function of frequency. Audiologist., A professional specializing in the study and rehabilitation of hearing, who is certified by the American Speech, Hearing and Language Association or licensed by a state board of examiners. Baseline Auclogram:The audiogram against which future audiograms are compared. Continuous Noise. Noise with negligibly small fluctuations of level within the period of observation. Decibel(dB):The unit of measure of sound level. dBA (decibels-A-Weighted): A unit of measurement of sound level corrected to the A- weighted scale, as defined in ANSI S1.4-1971, using a reference level of 20 micropascals (0.00002 Newton per square meter.) Hertz(Hz):A unit of measurement of frequency, numerically equal to cycles per second. High Noise Area:An area where equipment operates in excess of 85 dBA. Impulsive Noise. Noise that is characterized by a sharp rise and rapid decay in sound levels and is less than 1 second in duration. Intermittent Noise: Noise levels that are interrupted by intervals of relatively low sound levels. Medical Pathology., A disorder or disease affecting the ear, which should be treated by a physician. Noise Dosimeter: An instrument used to measure sound level over the course of a work shift. Safety Policy and Procedures 3OF 11 PiMsed 0127109 Noise reduction rating(NNR): Measure of the estimated attenuation capacity of a hearing protector to represent the approximate noise reduction, in dBA Otolaryngologist A physician specializing in the diagnosis and treatment of disorders of the ears, nose and throat. Representative Exposure: Measurements of an employee's noise dose or 8-hour time weighted average sound level that Safety deems to be representative of exposures of other employees in the workplace. Similar Exposure Group., Group of workers having the same general exposure profile for the agent(s)being studied because of the similarity and frequency of the tasks performed,the materials and processes with which they work, and the similarity of the way they perform tasks. Sound Level., A measurement derived from the mathematical derivation of the measured A- weighted average sound level when compared to a standard reference pressure of 20 micropascals. Sound Level Meter. An instrument used for the measurement of sound level. Standard Threshold Shift(STS): A change in hearing threshold relative to the baseline audiogram of an average of 10 dB or more at 2000, 3000 and 4000 Hz in either ear. Time Weighted Average(TWA): The average time, over a given work period(e.g. 8-hour workday)of a person's exposure to a chemical or an agent. The average is determined by sampling for the contaminant throughout the time period. 4) PROCEDURE a) Requirements i) The district shall conduct noise monitoring and implement this Hearing Conservation Program when it is determined that employee exposure to noise meets or exceeds the action level of an 8- hour TWA of 85 dBA. The Hearing Conservation Program shall include the elements listed below. ii) Employees shall be required to wear hearing protection where noise monitoring results are over 90 dBA. b) NOISE STANDARDS i) The Cal OSHA Noise Standard, CCR Title 8 Article 105 Control of Noise Exposure established 90 dBA as the B-hour TWA permissible exposure limit(PEL)for continuous noise,with allowable increases of 5 dBA for each halving of exposure duration, up to a maximum of 115 dBA(Table 1). The standard specifies that feasible engineering or administrative controls shall be utilized to reduce sound levels within the PEL's shown, and, if such controls fail to accomplish that reduction, personal protective equipment(PPE) shall be provided and a continuing effective Hearing Conservation Program administered. The principal components are exposure monitoring, audiometric testing, hearing protection,employee training, and reoordkeeping. ii) The District has set the B-hour time-weighted average at 90 dBA As with the Cal-OSHA Noise Standard, audiometric testing and training is required. The District has also established a Sound Pressure Level not exceeding 140 dB Linear Peak Safety Policy and Procedures 4 OF 11 Revised 01/27MB TABLE 1 PERMISSIBLE EXPOSURE LIMITS Duration Per Day Sound Level (Hours) (dBA Slow Scale) 8 90 8 92 4 95 3 97 2 100 1.5 102 1 105 30 min 110 15 min or less 115 `NOTE: Exposure to impulse or impact noise should not exceed140dB peak sound pressure level. c) RESPONSIBILITIES i) The Occupational Clinic shall: (1) Provide guidance and consultation on matters pertaining to hearing conservation for the Sanitation District. (2) Conduct baseline audiometric testing in accordance with the pre-placement physical and provide results to the Safety&Health Division. ii) The Safety and Health Supervisor shall: (1) Receive and review employee reports of occupational noise hazards and coordinate a response with the Occupational Clinic and Safety Staff according to established procedures. (2) Coordinate with the Occupational Clinic and Safety Staff in evaluating the results of routine occupational noise surveys and speciaf¢ed noise hazards evaluations and help in determining the appropriate corrective action where needed. (3) Represent the District in liaison with Governmental and private organizations on matters related to occupational noise and hearing conservation. (4) Establish and maintain a hearing protection and audiometric testing program for all employees whose noise exposures equal or exceed an 8-hour TWA of 85 dBA per Cal/OSHA regulations. Safely Poky and Procedures 5OF 11 Revised 0127109 iii) Safety&Health Division shall: (1) Administer the Hearing Conservation Program including noise monitoring, coordination of audiometric testing, and employee training. (2) Receive and review employee reports of occupational noise hazards and coordinate a response (3) Post high noise areas based upon a TWA. (4) Perform specialized noise hazards evaluations, recommending corrective action where needed, and providing training for employees included in the Hearing Conservation Program. (5) Perform routine occupational noise surveys to identify and monitor hazardous noise areas and operations and assist in determining those occupations or employees to be included in the Hearing Conservation Program. (6) Provide training for employees included in the Hearing Conservation Program. (7) Coordinate with Engineering to ensure that appropriate noise controls are specified for new equipment. iv) Managers and Supervisors shall: (1) Ensure that all employees working in potentially hazardous noise areas(as defined herein) are familiar with the contents of this program. (2) Ensure that when employees are in the Hearing Conservation Program, the mandatory aspects of the hearing protection and employee training sections of this program are adhered to. (3) Request occupational noise evaluations when in their judgment they are needed.They may be guided by reports of noise that causes excessive interference in conversing(face to face, or via radio, or telephone)or by repeated complaints about loud and intrusive noise,ringing in the ears following noise exposure, etc. d) Exposure Monitoring and Assessments i) The Safety and Health Division shall conduct noise surveys and dosimetry to determine areas where hearing protection is required and determine which employees must be included in this hearing conservation program. (1) General Requirements (a) Exposure assessment equipment(sound level meters and noise dosimeters)shall be properly calibrated. (b) Only personnel properly trained in the evaluation of noise exposure data shall interpret the data. (2) Initial Exposure Assessments (a) A noise survey shall be conducted in all areas of the worksite and noisy tasks to determine if noise exposures may exceed 85dBA. (b) In areas where noise exposures exceed 85 dBA, a noise dosimeter shall be used to determine if employees noise exposure exceed an 8-hour TWA of 85 dBA. (r.) If employees move around frequently, Safety shall develop Similar Exposure Group (SEG)to accurately determine noise exposures. Safety Policy and Procedures 6 OF 11 Revised 01/27/09 (3) Periodic Exposure Assessments (a) If an employee's noise exposure exceeds an 8-hour TWA of 85 dBA, monitoring shall be repeated every 2 years. (b) Monitoring shall be repeated within 3 months when there is a change in equipment, production processes or maintenance routines. (c) Monitoring may be repeated at shorter frequencies if employees are developing significant threshold shifts. ii) Areas of Exposure (1) The following areas have been found to be 90 dBA or over. (a) Plant 1 -Central Generation excluding the control mom and break area. (b) Plant 1 —MSP motors (c) Plant 1 —Gas Compressor Building-inside (d) Plant 1 -Building 4—Welding/Cuting Area (e) Plant 2-Power Building D—Generator Room (f) Plant 2-Digester M-L—Pump Room (g) Plant 2—Primary Effluent Pump Station(PEPS)Air Compressor Room (h) Plant 2—Central Generation excluding the control room and break areas. (i) Plant 2-Headworks A&B—Generator Rooms 1 and 2 Q) Plant 2-Emergency Power Building excluding data room (k) Plant 2-Headworks B lower level at pump 9 (1) Plant 2-West Return Activated Sludge(RAS)lower level at pumps (m)Plant 2 -Lindstrom Dewatering Building-Basement e) Employee Training i) The success of this Hearing Conservation Program depends largely on effective employee education regarding all aspects of the program. The primary focus of the training must be on the workers and they must be informed about the reasons for and the requirements of the Hearing Conservation Program. ii) Annual training is provided to all employees who are in the Hearing Conservation Program. Employees in the Hearing Conservation Program are employees who are exposed to 85 dBA or greater on an 8-hour time weighted average for 12 or more days per year and/or exceed a peak noise level of 140 dB linear peak. iii) The training shall cover hazards and effects of noise; the purpose, advantages, and disadvantages `. various types of hearing protectors; the selection, fitting, and care of protectors, the purpose and procedures of audiometric testing and noise exposure data. f) Audiometric Testing i) All audiograms obtained shall meet the requirements of Cal-OSHA requirements found in 8 CCR 5097,Appendix B:Audiometric Measuring Instruments. Safety Policy and Procedures 7 OF 11 Revised 0127M9 ii) The audiometric testing program shall include baseline and annual audiometry for all employees in the Hearing Conservation Program. Testing shall be performed by a qualified audiometric technician or by a consultant who specializes in audiometric examinations. (1) The test shall be made available within one year of an employee's first exposure at or above the action level. III) Baseline audiogram (1) The reference against which future audiograms are compared, should be obtained prior to an employee's first exposure to noise that equals or exceeds the action level. It shall be obtained as soon as possible, but no longer than 6 months, after it becomes known that the employee will be or is exposed to noise that equals or exceeds the action level. Testing to establish a baseline audiogram for employees shall be preceded by at least 14 hours without exposure to workplace noise. (2) This requirement may be met by wearing hearing protectors which will reduce the employee's exposure to a sound level of 85 dBA or below. (3) The SAFETY AND HEALTH DIVISION shall notify employees of the need to avoid high levels of non-occupational noise exposure during the 14-hour period immediately preceding the audiometric examination. iv) Annual audiograms (1) They are given to all employees exposed to 85 dBA, as an 8-hour time-weighted average, for 12 or more days per year and/or exceed a noise level of 140 dB linear peak. The results are compared to the baseline audiogram to determine if an employee's audiogram is valid and if a standard threshold shift(STS) has occurred. The STS is either a change in hearing threshold relative to the baseline audiogram of an average of 10 dB or more at 2000, 3000, and 4,000 Hertz(Hz) in either ear, after applying the standard age correction methodology shift of 25 dB HL or more in the same ear and frequency on two consecutive tests at frequencies between 1000 and 6000 hertz. The Oftsite Occupational Clinic shall review problem audiograms to determine whether there is a need for further evaluation or referral. If an STS is identified,the employee shall be informed of this fact in writing within 21 days of the determination and shall be fitted or refitted with adequate hearing protectors and required to wear them. (a) If an STS is indicated as a result of the mobile van audiometric testing, the employee will have a follow-up test to confirm whether the STS is valid. This test shall be conducted at the Offslte Occupational Clinic. (2) At termination of work for the District, an employee who has been exposed to noise is required to have an audiometric test performed as well. (3) Audiometric tests shall be pure tone, air conduction, hearing threshold examinations, with test frequencies including, as a minimum, 500, 1000, 2000,3000,4000, and 6000 Hz. Tests of each frequency shall be run separately for each ear. v) Standard Threshold Shift (1) If a comparison of the annual audiogram to the baseline audiogram indicates a standard threshold shift, the employee shall be informed of this fact, in writing,within 21 days of the determination. (2) Unless a physician determines that the standard threshold shift is not work related or aggravated by occupational noise exposure, the Safety& Health Division shall ensure that the following steps are taken when a standard threshold shift occurs: Safety Policy and Procedures 8 OF 11 Revised 0127/09 (a) An employee not using hearing protectors shall be fitted with hearing protectors,trained in their use and pre, and required to use them; and (b) Ajob restriction stating"Must wear hearing protection if exposed to noise levels exceeding 85 dBA"shall be placed in the employee's medical file. (c) The STS will be recorded on the OSHA 300 log as an injury. (d) The new audiogram Will then become the baseline for future comparisons. (3) The employee and his/her supervisor shall be notified of this restriction in writing. (4) The supervisor shall be responsible to ensure the employee properly wears hearing protection. (5) An employee already using hearing protectors shall be refitted and retrained in the use of hearing protectors by the Safety and Health Division and provided with hearing protectors offering greater attenuation if necessary. (6) Refer the employee for a clinical audiological evaluation or an otological examination, as appropriate, if additional testing is necessary or if the district suspects that a medical pathology of the ear is caused or aggravated by the wearing of hearing protectors. (7) Inform the employee of the need for an otological examination if a medical pathology of the ear which is unrelated to the use of hearing protectors is suspected. (8) If subsequent audiometric testing of an employee whose exposure to noise is less than an 8- hour time-weighted average of 85 decibels indicates that a standard threshold shift is not persistent,the Safety and Health Division: (a) Shall inform the employee of the new audiometric interpretation; and (b) May discontinue the required use of hearing protectors for that employee. (9) As used in this section, a standard threshold shift is a change in hearing threshold relative to the baseline audiogram of an average of 10 dB or more at 2000,3000 and 4000 Hz in either ear. (10) In determining whether a standard threshold shift has occurred, allowance may be made for the contribution of aging(presbycusis)to the change in hearing level by correcting the annual audiogram according to the procedure described in 8 CCR Article 105, Appendix F: Determination and Application of Age Correction to Audiograms g) Equipment Purchases i) In an effort to reduce equipment-related noise, attempts shall be made to purchase equipment that meets the following requirements for noise: (1) Equipment shall produce a noise level of less than 85 dBA at the operator's workstation or a distance of 5 feet from the equipment. (2) Equipment that is not able to meet the above requirements shall be enclosed,dampened or some other form of control used to minimize the noise level to include posting a warning sign. h) Program Administration i) The Hearing Conservation Program shall be managed and administered by the Safety and Health Division. Sarery Policy and Pmcedure 9 OF 11 Revised 01271M ii) Noise exposure measurement records and audiometric test records shall be retained in the Safety Division office in accordance with District recordkeeping requirements. The audiometric record shall include: (1) Name and job classification of the employee. (2) Date of the audiogram. (3) Examiners name. (4) Date of the last acoustic or exhaustive calibration of the audiometer. (5) Employee's most recent noise exposure assessment. (6) Date of the last hearing conservation training and the name of the person conducting the training. iii) A confirmed work related average threshold shift in either ear of 10 dB HL at 2000, 3000 and 4000 Heitz after applying the standard age correction methodology must be recorded on the OSHA Log within 6 days of identification. iv) All acoustic and audiometric records shall be provided upon request to the employeetfonmer employee requesting the documentation, representatives designated by the employee, and OSHA. v) Audiogram Recordkeeping (1) The Safety&Health Division shall maintain audiometric test records for an employee's length of employment plus 30 years. vi) Program Review and Assessment (1) This Hearing Conservation Program shall be evaluated annually to ensure that it is effective in providing adequate protection against harmful noise. The following steps shall be followed to conduct this program review. (a) The Safety&Health Division shall determine'lf regulations or national consensus standards have changed since the last annual program review. (b) Review Federal OSHA Standards, interpretations and documents. (c) Review consensus standards. (d) The Safety &Health Division shall review the current Hearing Conservation Program, proposed changes to State and Federal Regulations and national consensus standards and recommend changes to the district's Hearing Conservation Program as required. (e) The Safety Division shall have 30 days to make minor program changes, and 60 days in the case of major program revisions. (f) Hearing Conservation Program reviews shall start by November 15 of each year. t) Hearing Protection Selection i) Prerequisites (1) Noise that cannot be attenuated from the workplace through process control or other engineering methods to reduce the noise. ii) Precautions (1) The improper selection of hearing protection an lead to permanent hearing loss. (2) Ear muffs and ear plugs Noise Reduction Rating(NRR) cannot be added together. So'if an ear muff has a 30 NRR and ear plugs have a 32 NRR you do not have a combined NRR of 62. Safety Policy and Procedures 100F11 Revised 0127= (a) If ear muffs and ear plugs are used together you only add an additional 5 dB to the earmuffs NRR. iii) Instructions (1) The District shall make hearing protectors available to all employees exposed to an 8-hour time-weighted average of 85 decibels or greater at no cost to the employees. (2) The District shall ensure that hearing protectors are wom by all employees: (a) Who are required to wear personal protective equipment;or (b) Who are exposed to an 8-hour time-weighted average of 85 decibels or greater, and who: (i) Are required to wear hearing protectors because baseline audiograms have not yet been established; or (ii) Have experienced a standard threshold shift. (3) Employees shall be given the opportunity to select their hearing protectors from a variety of suitable hearing protectors provided by the employer. j) Determining Hearing Protection Attenuation i) When using a sound level meter set to the A-weighting network (1) Obtain the employee's A-weighted TWA. (2) Take the Noise Reduction Rating (NRR)from the hearing protection and subtract 7 dB and this will give you the actual NRR on the hearing protector container, and subtract the remainder from the A-weighted TWA to obtain the estimated A-weighted TWA under the ear protector. (a) If the NRR for an ear plug is 32 you would subtract 7 from the 32 and get a true NRR of 25 dB. So if the noise level was105 dB in an area you would subtract 25 dS from 105 dB to get 80 dB exposure to the employee. 5) REFERENCES/RELATED LINKS a) SAFETY-SOP-102, Personal Protective Equipment b) SAFETY-POL403, Medical Examinations c) Title 8, California Code of Regulations Article 105, Control of Noise Exposure. d) Title 29, Code of Federal Regulations, Part 1910.95 Occupational Noise Exposure e) American National Standards Institute(ANSI)S1.4-1971 Weighting Networks for Acoustical Measurements, Design Response of 6) ATTACHMENTS a) None Safety Policy and Procedures 11 OF 11 Revised 01271M ORANGE COUNTY SANITATION DISTRICT Risk Management Division Safety SOP 113 Bloodbome Pathogens Exposure Control Plan 1/ APPROVALS Approved by{-- p Date: 41 General Manager REVISION HISTORY Rev. Date WrHten By 0 01/15102 James Matte 1 10111/11 Wesley Bauer This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Intranet to ensure that they have the latest version. SAFETY POLICY AND PROCEDURES IOf21 Revised 10/112011 Table of Cortteft 1) Purpose........................................................3 2) Policy............................................................3 3) Definitions....................................................4 4) Exposure Determination.............................. 7 5) Exposure Control Methods..........................8 i) Hand and Body Washing..................................................a ii) Other Work Practices........................................................9 iii) Personal Protective Equipment(PPE)..............................9 iv) HousekeepIN.................................................................10 6) Hepatitis B Vaccination.............................. 10 7) Post Exposure Evaluation ......................... 11 8) Communication and Training..................... 13 9) Exposure Control Plan Evaluation............. 15 10) Appendix... ... ... ......... ......... ... ............16 SAFETY POLICY AND PROCEDURES 2 OF 21 Revised 10/112011 Section Number: SAFETY SOP-113 Orange County Sanitation Effective/Revised Date: 10/11111 District Supersedes: 01115102 Subject Bloodbome Pathogens Exposure Approved by: General Manager Control Plan 1) Purpose a) The purpose of this Bloodbome Pathogens Exposure Control Plan (ECP) is to protect the health and safety of those employees who have the potential to be exposed to blood or other potentially infectious materials. 2) Policy a) OCSD is committed to providing a safe and healthful work environment for our entire staff. In pursuit of this endeavor, the ECP is provided to eliminate or minimize occupational exposure to Bloodbome Pathogens in accordance with the following regulatory standards; 1) OSHA standard 29 CFR 1910.1030, "Occupational Exposure to Bloodbome Pathogens." ii) CCR Title B, Subchapter 7, GISO Group 1 General Physical Conditions and Structures Orders§ 3204, Access to Employee Exposure and Medical Records iii) CCR Title 8, Subchapter 7. G(SO Group 16. Control of Hazardous Substances Article 109. Hazardous Substances and Processes§5193. Bloodbome Pathogens. b) The ECP is a key document to assist OCSD in implementing and ensuring compliance with the standard, thereby protecting our employees. This ECP includes: i) Determination of employee exposure 5) Implementation of exposure control methods, including: (1) Universal precautions (2) Engineering and work practice controls SAFETY POLICY AND PROCEDURES 30F21 Revised l0/112011 (3) Personal protective equipment (4) Housekeeping iii) Hepatitis B vaccination iv) Post-exposure evaluation v) Communication and training vi) Recordkeeping vii) Evaluation c) The methods to implement these elements are discussed in the subsequent pages of this ECP. 3) Definitions Antibody: a substance produced in the blood of an individual which is capable of producing a specific immunity to a specific germ or virus. Antigen: any substance which stimulates the formation of an antibody Biohazard Label: a label affixed to containers of regulated waste, refrigeratorsNreezers and other containers used to store, transport or ship blood and other potentially infectious materials. The label must be fluorescent orange-red in color with the biohazard symbol and the word biohazard on the lower part of the label. Blood: human blood, its components, and products made from human blood. Bloodbome Pathogens: pathogenic(disease producing) microorganisms that are present in human blood and can cause disease in humans. These pathogens include, but are not limited to, hepatitis B virus (HBV) and human immunodeficiency virus (HIV) Clinical Laboratory: a workplace where diagnostic or other screening procedures are performed on blood or other potentially infectious materials. Contaminated: the presence or the reasonably anticipated presence of blood or other potentially infectious materials on an item or surface. Contaminated Laundry: laundry which has been soiled with blood or other potentially infectious materials or may contain sharps. SAFETY POUCY AND PROCEDURES 4OF 21 Revmd 1011 M011 Contaminated Sharp: any contaminated object that can penetrate the skin including, but not limited to needles, scalpels, broken glass, capillary tubes, and the exposed ends of dental wires. Decontamination: the use of physical or chemical means to remove, inactivate, or destroy Bloodbome pathogens on a surface or item to the point where they are no longer capable of transmitting infectious particles and the surface or Item is rendered safe for handling, use or disposal. Engineering Controls: controls (i.e., sharps disposal containers, self-sheathing needles)that isolate or remove the bloodbome pathogens hazard from the workplace. Exposure Control Plan: a written program developed and implemented by the employer which sets forth procedures, engineering controls, personal protective equipment, work practices and other methods that are capable of protecting employees from exposures to bloodbome pathogens, and meets the requirements spelled out by the OSHA bloodbome Pathogens Standard. Exposure Determination: how and when occupational exposure occurs and which job classifications and/or individuals are at risk of exposure without regard to the use of personal protective equipment. Exposure Incident: a specific eye, mouth, other mucous membrane, non-intact skin, or parenteral contact with blood or other potentially infectious materials that results from the performance of an employee's duties. Hand washing Facilities: a facility providing an adequate supply of running potable water, soap and single use towels, medicated towelettes or hot air drying machines. HBIG: Hepatitis B Immune Globulin, which contains antibodies to hepatitis B virus and offers prompt but short lived protection. HBV: Hepatitis B Virus. HIV: Human Immunodeficiency Virus. Medical Consultation: a consultation which takes place between an employee and a licensed healthcare professional for the purpose of determining the employee's medical condition resulting from exposure to blood or other potentially infectious materials, as well as any further evaluation or treatment that is required. SAFETY POLICY AND PROCEDURES SOF21 RoWwd10I IMII Mucus: a thick liquid secreted by glands, such as those lining the nasal passages, the stomach and intestines, the vagina, etc. Mucous Membranes: a surface membrane composed of cells which secrete various forms of mucus, as in the lining of the respiratory tract and the gastrointestinal tract, etc. Occupational Exposure: a reasonably anticipated skin, eye, mucous membrane, or parenteral contact with blood or other potentially infectious materials that may result from the performance of an employee's duties. OSHA: the Occupational Risk Management Administration of the U.S. Department of Labor, the Federal agency with Risk Management regulatory and enforcement authorities for most U.S. industry and business. OPIM -Other Potentially Infectious Material (1) The following human body fluids: semen, vaginal menstrual blood, vomit, cerebrospinal fluid,synovial fluid,pleural fluid, pericardial fluid, peritoneal fluid, amniotic fluid, saliva in dental procedures, any body fluid that is visibly contaminated with blood, and all body fluids in situations where it is difficult or impossible to differentiate between body fluids; (2) Any unfixed tissue or organ (other than intact skin) from a human (Irving or dead); and (3) HIV-containing cell or tissue cultures, organ cultures, and HIV- or HBV-containing culture medium or other solutions; and blood, organs, or other tissues from experimental animals infected with HIV or HBV. Parenteral: piercing mucous membranes or the skin barrier through such events as needle sticks, human bites, cuts, and abrasions. Pathogen: a bacteria or virus capable of causing infection or disease. PPE: specialized clothing or equipment worn for protection against a hazard. Personal protective equipment may include, but is not limited to, gloves, gowns, laboratory coats, face shields or masks and eye protection equipment, and mouthpieces, resuscitation bags, pocket masks, or other ventilation devices. Prophylaxis: the measures carried out to prevent diseases. SAFETY POLICY AND PROCEDURES 6OF21 Revised 10/112011 Regulated Waste: liquid or semi-liquid blood or OPIM in a liquid or semi-liquid state if compressed; items that are raked with dried blood or other potentially infectious materials and are capable of releasing these materials during handling; contaminated sharps; and pathological and microbiological wastes containing blood or other potentially infectious materials. Research Laboratory: a laboratory producing or using research-laboratory-scale amounts of HIV or HBV. Research laboratories may produce high concentrations of HIV or HBV but not in the volume found in production facilities. Serous Fluids: liquids of the body, similar to blood serum, which are in part secreted by serous membranes. Source Individual: any individual, living or dead, whose blood or other potentially infectious materials may be a source of occupational exposure to the employee. Sterilize: the use of a physical or chemical procedure to destroy all microbial life including highly resistant bacterial endospores. Synovial Fluid: the clear amber fluid usually present in small quantities in a joint of the body(i.e., knee, elbow). Universal Precautions: an approach to infection control.According to the concept of Universal Precautions, all human blood and certain human body fluids are treated as if known to be infectious for HIV, HBV, and other bloodbome pathogens. Vascular: pertaining to or composed of blood vessels Work Practice Controls: controls that reduce the likelihood of exposure by altering the manner in which the task is performed. 4) Exposure Determination a) Cal-OSHA regulations (8 CCR 5193(f)) require that "employers make available the hepatitis B vaccine and vaccination series to all employees who have occupational exposure, and post-exposure evaluation and follow-up for bloodborne pathogens exposure to all employees who have had an exposure incident." Cal OSHA does exempt "Designated first aid providers who have occupational exposure if the following conditions exist: SAFETY POUCY AND PROCEDURES 70F21 Revised 10/11/2011 b) The primary job of such designated first aid providers is not the rendering to first aid. c) Any first aid rendered by such persons is rendered only as a collateral duty responding solely to injuries resulting from workplace incidents, generally at the location where the incident occurred." i) In light of this requirement and exemption, the District is designating the following group as having an occupational exposure to bloodborne pathogens, which requires training but not the hepatitis B vaccine. Group Exposure Methods of Exposure Control Persons Gained in Treating injuries—awaiting Universal Precautions, PPE, Basic First Medical Team response. access to Basic First Aid Kit Aid/CPR d) The list of persons in these groups may change. Risk Management maintains the list of recognized personnel. 5) Exposure Control Methods a) Universal precautions will be observed at the District in order to prevent contact with blood or other potentially infectious materials. b) This means that all blood or OPIM will be considered infectious regardless of the perceived status of the source individual. c) The Risk Management Division in coordination with the Medical Unit conducts ongoing evaluation of tasks and medical devices that carry a risk of exposure and implements safer medical devices whenever feasible. d) The following work rules apply where there is a potential for contact with blood or OPIM: i) Hand and Body Washing (1) Hand washing facilities are available to employees who are exposed to blood or other potentially infectious materials. SAFETY POLICY AND PROCEDURES 8OF21 Revised l0/112011 (2) Employees shall wash hands after removal of personal protective gloves and whenever there is a likelihood of contamination. In addition, any contaminated skin area will be washed as soon as possible. (3) When hand washing facilities are not readily available, the use of waterless hand washing products is permitted as an interim means of washing the hands or other parts of the body after contamination with blood or OPIM. (4) If blood or other potentially infectious material contacts mucous membranes, those areas shall be washed or flushed with water as appropriate as soon as possible following contact. ii) Other Work Practices (1) Eating, drinking, smoking, applying cosmetics or lip balm, and handling contact lenses are prohibited in work areas where there is a reasonable likelihood of occupational exposure. (2) Food and drink must not be kept in refrigerators, freezers, shelves, and cabinets or on countertops or bench tops where blood or other potentially infectious materials are present. (3) Mouth pipefting/suctioning of blood or other potentially infectious materials is prohibited. iii) Personal Protective Equipment (PPE) (1) All PPE used at this facility will be provided without cost to employees. (2) PPE will be chosen based on the anticipated exposure to blood or other potentially infectious materials. (3) The PPE will be considered appropriate only if it does not permit blood or other potentially infectious materials to pass through or reach the employees' clothing, skin, eyes, mouth, or other mucous membranes under normal conditions of use and for the duration of time, which the protective equipment will be used. SAFETY POLICY AND PROCEDURES 9OF 21 Revmd 10/11/2011 (4) Employees will receive training on the appropriate use of PPE provided for specific tasks. (5)The PPE listed in Appendix A is provided for workers. (a) If required PPE is not available, contact the Risk Management Division who will insure that supplies are replenished. iv) Housekeeping (1)The Medical Unit with an approved disinfectant must decontaminate contaminated surfaces as soon as possible after the surface becomes contaminated with blood or OPIM. 6) Hepatitis B Vaccination a) Hepatitis B vaccine shall be offered to all members of the Medical Unit, at no cost to the employee unless: i) the employee has previously received the series ii)antibody testing reveals that the employee is immune iii) medical reasons prevent taking the vaccination, or iv) the employee chooses not to participate b) Hepatitis B vaccine shall be offered to all employees at no cost who have had an exposure to blood or OPIM unless: i) The employee has previously received the series ii)Antibody testing reveals that the employee is immune iii) Medical reasons prevent taking the vaccination, or iv) The employee chooses not to participate c) Employees will be provided with information on Hepatitis B vaccinations addressing its safety, benefits, efficacy, methods of administration and availability. All occupationally exposed employees are strongly encouraged to receive the Hepatitis B vaccination series and post-vaccination antibody testing. SAFETY POLICY AND PROCEDURES 10 OF 21 Revised 10/112011 i) If an employee chooses to decline HB vaccination, the employee must sign a copy of the declination statement (Attachment B). (1) The copy will be kept in the employee's confidential medical record. (2) Employees who decline may request and obtain the vaccination at a later date at no cost. ii) The District shall notify all employees who receive hepatitis B vaccine of the location of the clinic providing the vaccine. iii) Employees shall receive vaccine during normal working hours or be compensated during non-working hours. 7) Post Exposure Evaluation a) Evaluation and Management of Exposure Incidents b) Post-Exposure Management c) Wounds and skin sites that have been in contact with blood or OPIM should be washed with soap and water, mucous membranes should be flushed with water. d) Immediately report all exposure incidents to the employee's supervisor or the Risk Management Division. e) The Risk Management Division will provide a doctor for a confidential medical evaluation to all exposed employees. i) It is important that employees receive a prompt medical evaluation because HBIG, hepatitis B vaccine, and HIV post exposure prophylaxis (PEP) are most likely to be effective if administered as soon after exposure as possible. f) If the employee does not give consent for HIV serologicel testing during collection of blood for baseline testing, preserve the baseline blood sample for at least 90 days. i) If the exposed employee elects to have the baseline sample tested during this waiting period, perform testing as soon as feasible g) The person (f known) whose blood or body fluid is the source of an exposure will be tested for HBV, HCV, and HiV infection as soon as feasible upon their consent. SAFETY POLICY AND PROCEDURES 11 OF21 Revised 10/112011 i) When the source is already known to be infected with HBV, HCV, or HIV then testing need not be repeated. ii) Information from the medical record at the time of the exposure (e.g., laboratory test results, admitting diagnosis, or previous medical history)or the source person will be collected to help confine or exclude bloodbome infection. iii) HBV, HCV, and/or HIV testing shall be performed if the infection status of the source person is unknown. iv) Results of source testing shall be provided to the employee, and the employee shall be informed of all applicable laws and regulations Concerning disclosure of the identity and infectious status of the source. v) The health department will be consulted in the event that consent for source testing cannot be obtained (Orange County Health Care Agency). h) Health Care Professional Follow-Up i) The Risk Management Division will ensure that health care professionals responsible for employee's hepatitis B vaccination and post-exposure evaluation and follow-up are given a copy of Cal-OSHA's bloodbome pathogens standard. ii)The Risk Management Division will ensure that the health care professional evaluating an employee after an exposure incident receives the following: iii) A description of the employee's job duties relevant to the exposure incident. iv) Route(s) of exposure. v) Circumstances of exposure. i) If possible, a result of the source individual's blood test relevant employee medical records, including vaccination status. j) The Risk Management Division will provide the employee with a copy of the evaluating health care professional's written opinion within 15 days after completion of the evaluation. SAFETY POLICY AND PROCEDURES 12 OF 21 ReWnd lO/112011 k) The written opinion for post-exposure evaluation and follow-up will be limited to whether or not the employee has been informed of the results of the health evaluation and of any health conditions which may require further evaluation and treatment. All other diagnoses must remain confidential and are not to be included in the written report to the district. 8) Communication and Training a) All employees who are trained in First Aid/CPR and have potential occupational exposure to bloodbome pathogens will receive training at the time of initial assignment and at least annually thereafter. The Risk Management Division shall be responsible for conducting training. b) Training will include: i) Information on the epidemiology, symptoms, and transmission of bloodborne pathogen diseases. if)A copy and explanation of the standard. iii) An explanation of the District's exposure control plan and how to obtain a copy. iv) An explanation of methods to recognize tasks and other activities that may involve exposure to blood and OPIM, including what constitutes an exposure incident. v)An explanation of the use and limitations of engineering controls, work practices, and PPE. vi) An explanation of the types, uses, location, removal, handling, decontamination, and disposal of PPE. vii)An explanation of the basis for PPE selection. viii)Information on the hepatitis B vaccine, including information on its efficacy, safety, method of administration, the benefits of being vaccinated, and that the vaccine will be offered free of charge. SAFETY POLICY AND PROCEDURES 13 OF 21 Revised 101112011 ix) Information on the appropriate actions to take and persons to contact in an emergency involving blood or OPIM. x)An explanation of the procedure to follow if an exposure incident occurs, including the method of reporting the incident and the medical follow-up that will be made available. A) Information on the post-exposure evaluation and follow-up that the employer is required to provide for the employee following an exposure incident. xii)An explanation of the signs and labels and/or color coding required by the standard and used at the District. xiii)An opportunity for interactive questions and answers with the person conducting the training session. c) Training records will be completed for each employee upon completion of training. These documents will be kept with the employee's records and will include: i) Dates of the training sessions. ii)Contents or a summary of the training sessions. iii) Names and qualifications of persons conducting the training sessions. iv) Names and job titles of all persons attending the training sessions. d) Training records will be maintained for a minimum of three (3) years from the date on which the training occurred. i) Employee training records will be provided upon request to the employee or the employee's authorized representative within 15 working days. e) Medical Records i) The Risk Management Division is responsible for maintenance of the required medical records. (1) Records are maintained in the Plant No. 1 Risk Management Division Office. SAFELY POLICY AND PROCEDURES 14 OF 21 Revised 10/112011 ii) Medical records are maintained for each employee with occupational exposure in compliance with 8 CCR 3204 and SAFETY-POL-405, "Access to Employee Exposure and Medical Records" and will include: iii) The name and social security number of the employee iv) A copy of the employee's hepatitis B vaccinations and any medical records relative to the employee's ability to receive vaccination v)A copy of all results of examinations, medical testing, and follow-up procedures as required by the bloodbome pathogens standard vi) A copy of all health care professional's written opinion(s) as required by the bloodbome pathogens standard f) All employee medical records will be kept confidential and will not be disclosed or reported without the employee's express written consent to any person within or outside the workplace except as required by the standard or other legal provisions. g) Employee medical records shall be maintained for at least the duration of employment plus 30 years. h) Employee medical records will be provided upon request of the employee or to anyone having written consent of the employee within 15 working days. 9) Exposure Control Plan Evaluation a) This Exposure Control Plan Program shall be evaluated annually to ensure that It is effective in providing adequate protection against blood and OPIM. The following steps shall be followed to conduct this program review: b) The Risk Management Division shall determine if regulations or national consensus standards have changed since the last annual program review. c) Review Federal OSHA Standards, interpretations and documents. d) Review consensus standards. SAFETY POLICY AND PROCEDURES 150E 21 Revised 101112011 e) The Risk Management Division shall convene a committee to review the current Exposure Control Plan, proposed changes to State and Federal Regulations and national consensus standards and recommend changes to the district's Exposure Control Plan as required. f) The Risk Management Division shall have 30 days to make minor grammatical program changes, without management or committee review. 10)Appendix a) Appendix A— PPE Hazard Assessment Certificate Form b) Appendix B—Hepatitis Vaccine Refusal Letter SAFETY POLICY AND PROCEDURES 16 OF 21 Revised 10/112011 Appendix A PPE Hazard Assessment Certification Form Name of work place: OCSD Assessment conducted by: Work place address: Plant's 1 &2 Collections Date of assessment: _ Work area(s): All OCSD Operational Areas Jobrl ask(s): First Aid Rt (Use a separate sheet for each job/task or work area) EYES Work activities such as: Work-related exposure to: Can hazard be elimin abrasive blasting ❑ sanding airborne dust Yes ❑ No ❑chopping ❑ sawing ❑dirt If no. use: ❑cutting ❑ grinding ❑ UV ® Safety glasses ❑drilling ❑ hammering ❑flying particles/objects ® Safety goggles ❑welding ❑ chipping ® blood splashes ❑soldering ❑ mixing ❑ hazardous liquid chemicals mists [I Dust-tight goggle: ❑torch brazing ❑ chemical splashes [I Impact goggles ❑working outdoors ❑ molten metal splashes ❑Welding l/sl ❑computer work ❑ glare/high intensity lights ® Chemicall goggles ❑punch press operations ❑ laser operations ® Chemical splash f ®other: Responding to reports of injury [I intense light ❑ Laser goggles Shading/Fitter(# El hot sparks _ ❑other. ❑ Welding shield ® Other. Depend FACE Work activities. such as: Work-related exposure to: Can hazard be elimin Meaning ❑foundry work ❑ hazardous liquid chemicals Yes ❑ No mixing ❑ welding ❑extreme heat If no. use: ❑ siphoning ❑ working outdoors ❑ extreme cold ❑ painting ❑ waste water ❑ potential irritants: ® Face shield ❑clip,tank operations treatment plant ® other: Blood or OPIM ❑ Shading/Fifter(# pouring operations ❑Welding shield other. Res ondin tore orts of injury ®Other. Depender EARSMEARING Work activities such as: Work-related exposure to: Can hplrd Melimin generator ❑grinding ❑ loud noises Yes U No ❑ventilation fans ❑machining ® bud work environment ❑ motors ❑ routers ❑noisy machines/tools If no use: ❑sanding ❑sawing ❑punch or brake presses ffZMflis pneumatic equipment sparks ED other. Blood or OPIM ear plugs Appendix A—PIPE Assessment 17 OF 21 Revised 04MM11 Punch or brake presses leather welding he ❑ use of conveyors N other Responding to reports of Injury HEAD Work activities, such as: Work-related exposure to: Can hazard be elimin ❑ building maintenance ❑ beams Yes ❑ No N ❑ confined space operations ❑ pipes ❑ construction ❑ exposed electrical wiring or If no. use: ❑electrical wiring components ❑ Protective Helmet ❑walkingtworking under catwalks El falling objects ❑Type A(low vo ❑walking/working on catwalks ❑fixed object ❑ Type B(high v� ❑walkingtworking under conveyor belts ❑ machine parts N Type C ❑ Bump cap (not ❑ working with/around conveyor belts ® other: Blood or OPIM ❑walking/working under crane loads Other: De❑ Hair net a soft er ❑ utility work N pander N other. Responding toreports of Injury HANDS/ARMS Work activities, such as: Work-related exposure to: Can hazard be elimin ❑sawing ❑ material handling N blood Yes ❑ No N ❑ hammering ❑ sanding ❑ irritating chemicals ❑grinding El using power tools ® tools or materials that could scrape, If no use: ❑welding ❑ working outdoors bruise, or cut Gloves ❑ Chemical resin ❑working with glass Elextreme heat ❑ using computers ❑ extreme cold ❑ Liquid/leak resi ❑computer work ❑ animal bites ❑ Temperature rc Abrasion/cut N other. Responding to reports of injury ❑ electric shock ❑❑ vibration ❑ Slip resistance ❑ musculoskeletal disorders N Latex or nitrite N sharps injury ❑Protective sleeve,- Anti-vibration N other: Blood or OPIM ® ❑ Ergonomic equipn N Other: Depender Appendix A—PPE Assessment 19 OF 21 Revised D4N512011 BODY/SKIN Work activties such as: Work-related exposure to: Can hazard be elimin ❑ battery charging ❑ chemical splashes Yes❑ No ❑waste water treatment operations ❑ extreme heat If no, use: ❑fiberglass installation ❑ extreme cold ❑Vest, Jacket ❑ sawing ® sharp or rough edges ❑Coveralls, Body si ®other: Responding to reports of injury ❑ irritating chemicals ❑Raingear ® other. Blood or OPIM ❑Apron ❑Welding leathers ❑Abrasionlcut resis ®Other Refer to of FEET/LEGS Work activities, such as: Work-related exposure to: Can hazard be elimin ❑ building maintenance ❑ explosive atmospheres Yes❑ No ❑ construction ❑ explosives If❑ demolition ❑ exposed electrical wiring or no use: ❑working outdoors components ®Safety shoes or bi ❑ plumbing ❑ heavy equipment ❑Toe protection ❑trenching ® slippery surfaces ❑ Electrical prole ❑ use of highly Flammable materials ❑ impact from objects ® Puncture resist ❑welding ❑pinch points Anti-slip soles ® ❑ Leggings or chap: other: Responding to reports of injury ❑ crushing ® slippery/wet surface ❑ Foot-Leg guards ® sharps injury ®Ofher. Depender ® blood ❑chemical splash ❑ chemical penetration ❑extreme heat/cold ❑fall ® other: OPIM BODY/WHOLE Work activities such as: Work-related exposure to: Can hazard be elimin ❑ building maintenance ❑working from heights of 10 feet or Yes ❑ No ❑ construction more ❑ computer work ❑ impact from Flying objects If no, use: ❑working outdoors ❑ impact from moving vehicles ❑ Fall Arrest/Restrai ❑ utility work ® sharps injury ❑Traffic vest ®other. Responding toreports of injury ® blood Static coats/overe AppendaA—PPE Asse ml 19 OF 21 Revised 0/1052011 electrical/static discharge EJ Flame resistant ja ❑hot metal ❑Insulated jacket ❑ musculoskeletal disorders ❑Out resistant slee% ❑ sparks ❑hoists/Ift ❑ chemicals ❑ergonomic equipn ❑ extreme heat/cold ® Other. Refer too ❑ elevated walking/working surface sections ❑working near water ® injury from slip/tripttall ®other. OPIM LUNGS/RESPIRATORY W2rk activities such as: Work-related exposure to: Can hazard be elimin ®cleaning ❑ pouring ❑ dust or particulate Yes❑ No ❑ mixing ❑ sawing ❑ toxic gas/vapor ❑painting ❑ chemical irritants (acids) If no, use: ❑fiberglass installation ❑ welding fume ® Dust mask ❑ compressed air or gas operations ❑ asbestos ® Disposable partict ❑ confined space work ❑ pesticides respirator ❑floor installation ❑ organic vapors ❑ Replaceable filter ❑ceiling repair ❑ oxygen deficient environment w/cartridge working outdoors ❑ paint spray ❑ PAPR(Air recycle other. Responding to reports of injury ❑ extreme heat/cold ❑ PPSA(Air supply) ® other: Blood or OPIM AppendaA-PPEAsseswnent 20OF21 Revised 0410502011 Appendix B HEPATITIS B VACCINATION REFUSAL I understand that due to my potential occupational exposure to blood or other potentially infectious materials I may be at risk of acquiring hepatitis B virus (HBO infection. I have been given the opportunity to be vaccinated with hepatitis B vaccine, at no charge to myself. However, I decline hepatitis B vaccination at this time. I understand that by declining this vaccine, I continue to be at risk of acquiring hepatitis B, a serious disease. If in the future I continue to have occupational exposure to blood or other potentially infectious materials and I want to be vaccinated with hepatitis B vaccine, I can receive the vaccination series at no charge to me. Employee Name (Printed) Date Employee Signature VWness Signature Appendbc B—HepB Vatic.Refusal 21 OF 21 Revised 04aWD11 ORANGE COUNTY SANITATION DISTRICT Risk Management Division Safely SOP304 AM*EquorwdPbkay APPROVALS Approved by: Date:z • 2 9 Y./ General Manager REVISION HISTORY Rev. Dale Written By 0 OWS/2011 Wes Bauer This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Intranet to ensure that they have the latest version. Safety and Health Policy&Procedure 1 of 10 New OriIM011 Table of Contents 1) PURPOSE 3 2) POLICY 3 3) DEFINITIONS 4 4) TRAINING AND AUTHORIZATION 5 5) PRINCIPLES OF SAFE OPERATION 6 6) FUELING AND RECHARGING,MAINTENANCE AND REPAIR 7 APPENDIXA MOBILE EQUIPMENT PRE-USE CHECKLIST 10 Safety and Health Pofiuy&PmCedure 2 of 10 New OG292011 Section Number. SAFETY SOP-304 orange County Sanitation Effective/ Revised Date: 06129/11 District Supersedes: New Subjftt Mobile Equipment Policy Approved by: General Manager 1) Purpose a) The Orange County Sanitation District(OCSD) is committed to providing a safe and healthy work environment. Employees of OCSD may be required use mobile equipment as part of their job duties. This program was created to establish procedures intended to reduce injuries and the risk of losses associated with operating and maintaining mobile equipment. b) This policy provides guidance for the use of Power Industrial Trucks(Forklifts), Aerial Work Platforms (AWP), Scissor Lifts, Backhoes, Loaders and industrial tow tractors. This list is not all inclusive. Some of these machines use gasoline, propane, diesel or natural gas, to power internal combustion engines. Others use rechargeable batteries to power electric motors and hydraulic pumps. c) Contractors who require mobile equipment shall adopt a plan that matches this policy. All Contractors and their Subcontractors must enforce this program while at any OCSD property. d) The intent is to ensure that any person who operates or maintains mobile equipment is trained, certified and authorized. 2) Policy It is the policy of OCSD; a) That any person who operates mobile equipment be trained, certified (ff required by any applicable standard), and authorized by their Supervisor to operate the particular piece of equipment in use, and be capable of offering proof by means of license, certification or authorization. Health and Safety will maintain employee training records. b) That any person who operates or performs maintenance or service on mobile equipment know, understand and follow manufacturer's specifications, recommendations and instructions. c) That all records relating to maintenance or repairs on equipment owned and operated by OCSD are maintained by the Manager of Fleet Services. Pre-use Checklists will remain with the equipment, and will be removed and restocked by Fleet Services personnel. d) That everyone who operates or maintains mobile equipment on OCSD property will follow all manufacturers' recommendations as well as every applicable regulation or standard. e) OCSD has developed this policy in accordance with: Safety and Health Policy&Procedure 3 of 10 NeW OerA011 i) CCR Title 8, subchapter 4, Article 10 Haulage&Earth Moving ii) CCR Title 8, Subchapter 4,Article 11 —Vehicles, etc. ii) CCR Title 8, Subchapter 7, Group 4- General Mobile Equipment and Auxiliaries iv) 29 CFR 1926A53, .602 and .952 v) 29 CFR 1910.67 and .178 vi) ANSI A92.2, .5 and .6 vii) ASME B.56.1-1975 and 1993, Safety Standards for Low Lift and High Lift Trucks viii)OSHA Letters of Interpretation ix) Equipment manufacturers' recommendations x) The Aerial Work Platform Statement of Best Practices published by the American Rental Association, the Association of Equipment Manufacturers, the Scaffold Industry Association, the Associated Equipment Distributors, and the International Powered Access Federation (collectively, the "Associations') f) Any OCSD employee who fails to comply with this program could face disciplinary action. g) Contractor and any subcontractor employees may be subject to removal from OCSD property for violating this policy. 3) Definitions a) Aerial Lift Platform (AWP): a vehicle-mounted device with telescoping or articulated arms used to position a platform to access work area at heights. Other types of elevating and rotating lifts: Extensible Boom Platforms,Aerial Ladders,Articulating Boom Platforms, Platform Lift, Vertical Towers and Ladder Trucks. Also known as a Man Lift. b) Attachments: The use of specialized removable equipment that may be required to extend the forks, lift drums, lift personnel, sling loads or any task approved by the manufacturer of the particular equipment c) Authorization: Authorized (in reference to an employee's assignment). Selected by the employer for that purpose. d) Backhoe: A tractor with an articulating hydraulically powered folding boom extending from the rear of the unit. The boom may accept attachments such as a bucket to remove materials such as earth, dirt, sand to create trenches or pits, or rollers to flatten and compact recently filled trenches or pits. e) Certification: Documentary proof of the successful completion of a course of training. Safety end Health Poky&Promdum 4 of 10 New OW92011 fl Forklift A mobile, power driven vehicle used for lifting, moving and stackingtt eeng materials. Also referred as a Powered Industrial Truck or PIT. g) Industrial Tow Tractor. A high power low speed industrial vehicle designed primarily to tow non-powered trucks, trailers or other mobile loads. The"mule" used at the rag and grit bins. h) Loader a self-propelled machine with a shovel or bucket at the end of articulated anus, used to raise earth or other material and load it into a dump truck. Also, called a front loader, front-end loader,track loader, bucket loader, or skip loader. i) ROPS: Structure which covers the machine operator in a manner that will minimize the possibility of injury from falling objects or equipment roll over. Roll Over Protective Structure. j) Scissor Lift:A self-propelled machine with an elevating platform which can be moved into place, then raised and lowered to various heights to access work; and be powered by electricity, gasoline, and diesel. 4) Training and Authorization a) OCSD shall require that operators of mobile equipment be trained on the various equipment used in their tasks, as well as the precautions, safe work practices, and personal protective equipment(PPE) needed to complete each task. b) Risk Management will maintain the records relating to operators and the equipment they are authorized to use. Operators should have proof of current authorization to operate equipment with them whenever they operate equipment. c) Training should be a combination of formal classroom and practical hands-on operation delivered by a qualified instructor and appropriately documented. Training may be completed in-house, or by using a training vendor per OCSD policy. d) Equipment operators shall qualify on each specific model of equipment they will operate, regardless of class similarities. e) Dependent on where the equipment is located (Plant 1 or 2 Warehouse, Rebuild Shop, O & M, pump stations or Fleet Services); a checkout log should be used to track equipment usage. f) Proof of an operator's certification/authorization and equipment pre-use inspections may be requested by a Supervisor or Safety personnel at any time while working at any OCSD properties. g) Re-evaluation of the operator will be required under any of the following circumstances: i) at least every three (3) years, ii) changes in the workplace or the type(s)of motile equipment being used, iii) when an operator is seen using equipment in an unsafe manner, Safety and Health Porky&Procedure 5 of 10 New 0awmi l iv) when an equipment operator is involved in an accident or near miss, and v) any other situation that arises in which retraining appears necessary h) All mobile equipment must have the manufacturers operating safety manuals stored on the equipment in a weather resistant storage compartment. Equipment operators shall be familiar with the operating manuals and refer to them as necessary. 5) Principles of Safe Operation It is the expectation of OCSD that anyone who operates mobile equipment will do so in a manner that does not increase the possibility of an accident. The commitment to safe operation takes place long before mobile equipment gets used. The following are considered leading indicators of safe operation. a) Appropriate training that leads to certification, licensing and authorization. b) Using pre-use checklists, setting minimal operational standards, and operators' commitment to using fully functional equipment. c) Knowing, understanding and following all applicable standards as well as manufacturers recommendations on every piece of equipment in operation. d) Recognition of site-specific conditions through use of Job Hazard Analysis (JHA) and Job Specific Safety Analysis (JSSA). e) OCSD Supervisions' ability to enforce safe work practices. By adhering to these practices every time mobile equipment is used the risk of loss is significantly reduced. Any operation inconsistent with these references is considered unsafe and subject to discipline that may lead to termination. The following are examples of safe operation: a) All operators must obey any posted speed limits signs, postings, audible, and visual warning devices under all travel conditions. b) Equipment operators must avoid running over loose materials, uneven or soft surfaces and slippery areas.All travelling surfaces shall be able to support the weight of the equipment and the load. c) Operators are responsible to keep equipment under control at all times and shall slow down for conditions of wet or slippery ground/floors, limited work access, high traffic areas of vehicles, and pedestrians and weather factors. d) While negotiating turns, ramps, inclines or change in grades, the operating speed must be reduced to a safe level. Equipment operators must know that most mobile equipment does not maneuver as an automobile and properly operate the equipment as needed. e) Stunt driving and horseplay are strictly forbidden. Safety and Health Porky 8 Pwoedure 6 of 10 New 06M2011 f) All mobile equipment rated capacities shall not be exceeded, the capacrty,shall be readily visible to the equipment operator. g) Riders are not permitted unless the equipment has additional seating. h) Operators shall keep all body parts inside the vehicle while traveling and wear seatbelts when installed on equipment. i) Operator shall not walk under or allow anyone to work under an elevated or suspended load. j) Equipment operators shall keep both hands free to operate the mobile equipment; eating, drinking, reading, texting, and talking on a phone are prohibited while operating any mobile equipment. k) Do not reach through the door, mast, or over railing to operate the equipment from the floor or ground unless the equipment is made for that type of operation. 1) There must be adequate overhead clearance maintained from lights, sprinklers, pipes or any other overhead obstructions. m) Employees should stay at least 10 feet away from energized or live overhead power lines and maintain safe distances from any other energy sources. n) Equipment operators should avoid sudden movements of any control levers; always maintain smooth control of the equipment. o) Equipment operators must have knowledge of controls and emergency procedures for manual lowering of any lift in case of power failure. p) Interlocks or other safety devices shall not be altered. q) Equipment operators shall maintain safe distances from edges, such as elevated ramps, platforms, docks and people. Never drive up to anyone standing in front of a fixed object r) When leaving free moving mobile equipment or power industrial trucks unattended (greater than 25 feet is abandoned),the equipment operator shall place the forks/basket(attachment on the ground/floor,, put the equipment in neutral; set the brakes; shut-off the equipment, remove the key; and block the wheels if on a ramp. s) A spotter for mobile equipment is required during transportation of oversized loads, traveling outside ant OCSD facility,when lifting personnel in OSHA approved safety cages. (Currently OCSD utilizes Aerial/Platform and Scissor lifts for personnel access to inaccessible work areas rather than using an OSHA approved safety cages. 6) Fueling and Recharging, Maintenance and Repair The equipment covered by this policy use either internal combustion engines or electric motors powered by batteries. The operations required to re-fuel in the field create exposures when SaWand Health Purry B Pnxed= 7of 10 New Oa292011 handling flammable and combustible fuels. The process of battery charging produces vapors and liquids that are explosive, acidic and hazardous. a) Gasoline or Diesel Fuels i) No equipment shall be refilled while the engine is running. i) Fueling shall be done in such a manner that likelihood of spillage is minimal. If a spill occurs it shall be completely evaporated or equivalent action taken to control vapors before restarting the engine. iii) A UL listed pump shall be provided to service the fuel tanks of all gasoline or diesel engine driven equipment, unless done in a safe manner by a gravity flow system with a metal-to-metal contact between the containers and the fuel tank. iv) Gravity flow systems shall be fitted with self-closing nozzles. When a hose is used it shall be of a type which is designed to handle gasoline. No gasoline shall be handled in open containers. v) Refueling with portable containers shall be done using Class 1 or Class 2 safety containers equipped with an automatic closing rap and flame arrester. vi) Fueling shall not take place near open flames, sparking or arc producing equipment. vii) Fuel tank caps shall be secured before starting the engine. viii)The storage and handling of liquid fuels such as gasoline and diesel shall be in accordance with NFPA Flammable and Combustible Liquids (NFPA No. 30). b) Liquid Propane When changing propane tanks on mobile equipment the operator shall: i) Follow manufacturers recommendations. ii) Make sure the equipment has stopped moving and forks or boom and platform are lowered to the ground or floor. iii) If forks are loaded, lower the load to the ground or floor. iv) Turn off engine and set emergency brake. v) If, the equipment is on an incline, set wheel chocks under tires. vi) Using gloves that resist cold temperatures, close tank supply valve, disconnect the flex hose connection, open holding straps and remove the propane tank. vii) Propane tanks can be heavy and difficult to access, ask for assistance to avoid injury. Safety and Heafih Policy&Procedure 8 of 10 New WWW11 viii)Place a verified full tank back into place, secure holding straps and conned the flex hose connection. ix) Open the propane tank supply valve and restart the mobile equipment. x) The storage and handling of liquefied petroleum gas fuel shall be in accordance with NFPA Storage and Handling of Liquefied Petroleum Gases (NFPA No. 58). c) Electric Motor with rechargeable Batteries Battery charging procedures must be followed to protect against eye and skin injuries and an explosion. Batteries contain corrosive chemical solutions, either acid or alkali, and while charging produce a chemical hazard. Following this procedure is required: i) Charging of batteries shall be in approved locations. ii) Turn off the engine and set parking brake and lower any attachments before handling any battery on a piece of mobile equipment. iii) Locate an Emergency Eyewash Station that is within ten seconds travel from the work area and accessible through a clear unobstructed path while charging, changing or servicing equipment batteries. iv) Prevent open flames, sparks or arc producing equipment in battery charging areas. v) Remove all jewelry, watches and any metal objects that may come in contact with battery terminals. vi) Wear appropriate Personal Protective Equipment(PPE) including safety glasses and a face shield, gloves and an apron for servicing or changing batteries. vii) Contain any battery spills around equipment using proper PPE and spill kits; place leaking batteries in proper acid proof containment. Notify Fleet Services immediately regarding leaking batteries or spills with an emergency service request. d) Maintenance or Repair i) It is the responsibility of Fleet Services to provide maintenance or repair to OCSD owned or operated mobile equipment. ii) All defective or damaged equipment parts shall be repaired to like new condition. iii) Operators are restricted from making any repairs or adjustments beyond the requirements of the pre-use checklist such as fuels and fluids replacement. safety and Health Policy&Procedure 9 of 10 New OW92011 Appendix A Mobile Equipment Pre-Use Checklist FaWift Am ❑ Scissor Lit ❑ Backhow xeder Tax MakeNodel# Location Asset# Every operator must inspect eauipment before use. + means no defects, damage or anything that would limit use, - means unit not serviceable Pre-start I Date _i t_ _i i i i _i i Operators manual, nameplate and + - + - + - + - +No Leaks—fuel, hydraulic, engine, + - + - + - + - + - Tires—condition and pressure + - + - + - + - + - Levels—fuel, hydraulic,engine, + - + - + - + - + - Battery—secure, no leaks or damage + - + - + - + - + - SeatBek, 'dequlPPed—serviceability + - + - + - + - +No visible damage—forks, masts, + - I + - + - + - + - Anv negative removes the unit from service-Complete FASTER Report! Notes Warm-up Gaugesllnstruments-functioning + - + - + - + - + - Lights, hom, back-up alarm- + - + - + - + - + - Aocelerator-smooth + - + - + - + - + - Drive control (Fwd &Rev)-smooth + - + - + - + - + - Braking-smooth + - + - + - + - + - Operator Controls—functional + - + - + - + - + - Auxiliary Controls, a equipped - + - + - + - + - +Any negative removes the unit from service-Complete FASTER Report! Notes OperetOrs Initials Salary and Health Poky B Procedure 10 or 10 NW08/282011 Orange County Sanitation District Grit&Screenings Removal Specification No. 5-2015-668BD Exhibit"C' Bid from Service Provider Orange County Sanitation District Specification No. 5-201&668BD Orange County Sanitation District Pages Grit6 screenings Removal IS.2015-66e0O),bidding an April 15.20152M PM(Pacific) PdM,,,J 4 Mrs Bid Results Bidder Details Vendor Name Denali Water Solutions Address 12B12Velley View St,09 Gdnen Grave,CA 92845 United States Respondee Chris Marks Respondee Title Manager Phone 76ON1.3175 Eat. Email ciais.metks®denaliwaler.com Vendor Type CADIR Bid Detail Bid Format Electronic Submitted April 15.20151:49:07 PM(Pedfic) Delivery Method Bid Responsive Bid Statue Submitted Conllm lon d 54420 Ranking 0 Respondee Comment Buyer Comment Attachments File Title File Name File Type 2015 Grit Bid Dos 2016 are bid tlxsD4152015 OOOO.pol Line Items Typ. tam code um Da/ uhtpdm Una Total Comment Total Wrap Bum Cost pl reslimated annual prandOn-All Llnaitems bid shall include all labor,material,disposal,misc.,cost 8 tees,W and begM(FOB Destination).Bidders must bid an all lino items.Not bidding on all line Items shall deem the bid submitted as Non4gespuns1ve.OCSD does not guarantee usage on this contract. 1 Plant l Truckload Tra sperl-Grit atdSrreening(2 Bhsyrmnspod) Ttwpnb 08s $526.W 5191,625.00 2 Plant 2 Trager Transport—Grit andSaeenktg Ttampans 260 $415.W $123,500.00 3 Plant 2 Tmaklead Transport-Dewatedng(I BIMwnspat) Trammertr 12 $525.GO 56.300.00 4 Plait 1 Trailer Transparls-Drying Bad Tranynb 60 V75.00 528,50O.G0 5 Plan l Sunday allocation service peocabn 52 $l Oaa $17.690.00 Sava Orange County Sanitation District Pe9va Od18 Sco aNng9 Removal(S-2015d58BD),bIMng om ApdH5,W15 2:00 PM(Paclflc) POW 04115 015 Bld Results Typo Item Coda OOM MY Unit Mo. Una Tmel comment 6 Woolen Tnnsparls to eltemalive lament Mles In case OCWR does NOT accept OCSO's residuals Tmmpona 12 SP5.00 $9.900M T Disposal fee for unferseen tomaporls W altemallve landfill Wet Tom to $5e.50 SI0.350.0o B Drum vrelt Ime-Houdy rate for OCSO caused delays News 10 $65.00 $650.00 Subtotal $387,905.00 Total S0117,9115.00 Plat0:6hla,iuc. This AffidavilTo Be Fully Executed Non-Cotiuslom Alfldavtt State Of )Ss' County Of// ae,sl opke,— / c rkC Bain First Duly Swom, Do And,�y�ThatHe Or he Is a � Of C141l WaV e+— 51 td 4alls, L-Z The Party Making The. Bid,That The:Bid Is Not Made In The Interest Of, Or On Behalf Of, Any Undisclosed Person, Partnership,Company,Association;Organization,Or Catporagon;That The Bid Is Genuine And Not Collusive Or.Sham;That The Bidder Has Not Dfrectly Or Indirectly Induced Or Soliched.Any Other Bidder Tc Put In A False Or Sham Biddei,.And Has,Not Directly Or Indirectly Colluded; Conspired,Connived,Or Agreed WWAny Bidder Or Anyone Else.To PuUn A Sham Bid,Or That Anyone Shelf Refrain From Submitting ABid;That The Bidder Has Not In Any Manner,.Dlrecdy Or Indirectly,Sought By Agreement Communication,Or Conference With Anyone To Fix The Bid Price Of The Bidder Or Any Other Bidder,Or To Fix Any Overhead,'Protll,Or Cost.Element Of The Bid Price, Or Of That Of Any Other Bid,Or To Seale Any Advantage Against The•Public Body Awarding.-The Contract Of.Anyone Interested In The proposed ContraU; Thal All Statements Contained In The Bid Are:True;And, Further,That The Bidder Has Not, Directly Or Indirectly,Submitted His Or Her Bid.Price Or Any.Breakdown Thereof,OrThe'Cordents Thereof, Or Divulged Information Or Data Relative Thereto,Or Paid.And Will Not Pay Any.Fee To Any Corporation, Partnership. Company Association, Organization, Bid,Depository; Or To Any . Member Or Agent Thereof To Effectuate A Collusive-Or Sham Bid I Declare Under Penalty Of Pedury Under The Laws The State Of California That The Foregoing Is True And Correll p" pp�ooa ra ;wlw'�m�Bdreaecma SI nawre Of President, ra¢9,yaAyao ldllw l "h0dr^ed 9 doommotfa fssfadred,olg rot Secretary,Manager, yy. Omer Or . 6.,...... .._,_....J Representative Subscribed And Swum ToSefore Me This C :Day Of201S'. �rmrgep" .I Signature Of�otN my Public In And For The Counfy Of.. M4C%4 I. State Of Ail Signatures Must Be Wltneseed By Notary ATTACHMENT F SpeciaceOaliNo.6•20ii:R BD� REFERENCE SHEET' ThefollovMg are the names,address@S.and telephone numbers forfto(5)municipal or IndusEdal.conlac s which bidder has provided dslm%ar seMceto wbhln the.pastMe.(5):years. Comoan¢ B. Telephone: Conta'ct� Fir . Address: A Empty: P-44agu :.00t•Oiis/da.B1 Company. �/rf Nq� ne !.&M _Jn'�fi(R�/M lAdJ'l6� ..Tdeohone: Rl),�'LK'W . Contact A Addresa; Iv A4 FMh .ING E �7 fl� lx D ,q a: Telephone: qq9 Zak-54'®Z Oontact •-T,. Boll I Faye . . 'Address: - 3H lSC Tk( QaVi� `y - £maiF. �6m4 Ssi+Jn .CO4% `D�, PoA,t cn• g26i9 4. Compaw r"4 dP - Re..nDn .,N Y eonona: -i6D 70- 2231) ' Contact .t/... /;..Jerson Aadrese:. lz5- �ad ri:f^ �. ,_ EmelF ,�jg7r)sr50 (4x Nd �.. _ Rbw.na , GA �I71lG 6; Company. Les 4/�. J.., ,.lta� Telephone 9120st at- Ub IJIA .� Email: Nfne��� �ac4J:D hoi _ ATTACHMENT " Speaillcedon'' a-S,2075,$BBBD CONTRACTOR'S LICENSE and REGISTRATION DECLARATION - (Business and Professions Code Sebtlon 7028.15) (labor CodaSIeIc0cn 1771/.nl4n) Iy � The �undersigned fdeclares that he or she is CI tj.' MOhrN pf UQngl, VpgrC� Sn'UNfNS (pany making foregoing bid) (hereinafter the'Biddei')' (� 'I 1. Bidder's Contractor's License Number Is as follows: 1 q 001 1 2. The expiration data of Bidders Contractor's License Is: I 51 ' 20_ 3. Bidder acknowledges that Section 7028.15(e).ofthe Business and Professions Code prevldes as follows: '[A)bid submitted to a public agency by a contractor who Is not licensed in accordance with this chapter shall be considered norwesponslve and shall be rejected by the public agency.... '[A]kcal agency shall,before awarding a bid,verify that the contractor was properly licensed when the contractor submldedthe bid.° 4. Bidder acknowledges that Semlon 1771.4(g)and Section 1771'A(c)(2)(B)of the Labor Code provide as follows:"Contractors entering irM any contract for public work must be registered." . 5. 'Awarding Body may not enter Into contract without proof of registration.* 6.Bidd sea DIR Registration Number is as follows: We")(gi2 7.The expiration dale of Bidder's DIR Registration is: I: I The undersigned declares,under penalty ofperlury,that the representations made by the undersigned in this bid proposal are We and correct �- r ,^1 ((�� p Executed on td �Sst So., UT j. IN ggqoL . Qnsert city and state where Dad We ). AAr.RS TypayylltrtaU.tT �+bemb .fir(JI✓r/�. Name of Bidder ATTACHMENT I Specification No.S-2015448BO BWSubmRfedBYe ./EYIGf� WNfiL/' �D/U Ong - (NNneorf$m) SVRCONTRACTOR OIR REGISTRATION (Note: If no subcontractor is used,state - D�YReQlebgN Subconnl torName as N/A)a- (Um+eP+reb sheet HOeeeeseryd - - - . ATTACHMENT J - SPedfi®tlbn No.8&20l BSBBD Public Workas Contractor Registration Search Page I of i r� JAL fE L:�^Ti Q• ltFrvi,�i•:;/gfl 'tl `I've'rfJ=S. Divaioo of Labor Srandar&Enrorrernem Public Works Contractor Registration Search rnb b a oalno Of w—O vnem O="=moomv lyunwnlu Mvi—].Pol],Cha;lwI(Oa—m=N MM xOoon 1130)of ma CWmmaleOV Cele. EnO,W wcume nmien3 me ysame noOs EM14O m®+bmbfal ma., 4 our,vJmmi Rupb[ralbn num0¢r: LoOOO1691] CvnI2Rm LLgal Wme: Cnnh.Matt[¢ roYun L�rtSp Xump r: I�SgaIA �0.t5CY 1 Publll W.IM C.M.Uor RugmVallon Wob S..rOh Xueulls One RaplslaroU CanVotlor IouM.t Ivgn xanw RphntlF�NumOar-tlimmarawMunMHYI'XaBYSWan Wm.6F0X11on 0.— oEI1KI wA1ER 5OLUlI0xS ;Ipppplfi9n NOHE:pOXE ;W26/I0lS 0W3O/NlE EyMu Emll MF (a,rlpbl t U14 Slala..M.Marnla https://efhng.dir.ca.gov/PWCR/Search.action 4/15/2015 BOL Announces Soled Terra Renewal's Wastewater Residuals Division - Brown Gibbs... Page I oft s Ovrem aueuziness eboalPmm na:n Esmin NewsE uvz°xrn Careen 1 y • ear.. t Nm M1.xxER[wum Grn11Rouua pGl<nn-anmx S".c,I ru"..—In WmrvrvaarxnNu-is an:eon Ne ws BGL Announces Sale of Research P ef;R.laaaef Terra Renewal 's Wastewater Residuals E.p.],Faxan�a ,IaJaLp.[m9, Division win Umrv.La,aa Cow.av(UGL) vLazwa—na Jw».w Of Uw ms:u cI:ma xecsa im l0.cw r.r+,.m: r.y°, ;Wurw Ecoav'.a ,aoab,ewvO Orman ar.x .al prrvp b]hv nr—nr nk:H�a„J p<Larn e..R�la>Yef oGLa Ea[rv.•.rJa Er—.�:ma.wsarmf mv.Nae,YYa as nra a,e:,:<r,r lmonaml aeriamwnm cw¢any nm a9nam wrrva.nr.J lmnrempn Paa.f rx nr,faarwala.xw.a,a.a.w iLvn Raretl'.n»a.sa Reaewla om.o,m k a.u[nau waH .v—,uaIo., [n.naraenral fnnnaf mmnaar UlayaA"On ,pnznc arcanla waa°mr mwm.l rcaao n p'm,s:Y;msfa rn.Aal,m.roaa,r.-uaa[,.af mm,.:v..,l r.e,oma[.x.: .mops ,ar..wrW p mer9 vaoe,aprmwa,c[:,,»Lrou P s..rm.za.sdan.[a ma rwema G.r.uf.,ssx-,.];ar maer.]'f onaapnm rs:,.ea.nm Ipx am.,e arL ra:,+pv.am nspre:l.r eoxnae e[-.mar.n.w .d+.+++la[.m�.y rr.,n>onaawq,maau.�y, EYan R:,p4p�E,AN Jvi¢re:q,n b]Ye 9GL YanNan lnrm Ya h':N6Ecs>u,eC az lepol .osuel Jm Cnnparry.ve Sm+,.411 C;+IaI Pnom 9rmvn G"In 1 ,,RLGryr�r Wrenn Qtnn Inry h C—,,a a Y:a61a mis rf[9un1 rrnHmr'nl Len"imvnp 0.niNlle On"", PGL:OJelvuanf b mmV^ra:lm acquze-1 I'll,anniees.P,M vd OgIII,pbuameob.1.w rvz wz ,m9 all ,., voUalrm an°lavn.zz op.m.n.wdn UlaEnl .ull aan+v In Loss.... lfM ll Re:ral Aa¢as,E,.Emrvemenq:G—, arU•Mn'a ELAeSar¢rz, —..I, .Is n,nermf P,ma pnv.p xY[a a a°[,Pp¢:.+I Rrml 1,100 PGL In 11.1 r"r 0— ,a,]La,[mmw........n<.nrnxrt.:;m N[ac, saax,.--e Inn,mpo In.m G. n run 1-0-1,a I'll pm[u,pumfa[apyfnp-1-11,.nm am,..[.lo.E—:..a1 ear.arfa,.a�x:r,,..zr,.,a[e-PaYw..w,[,y.:-s oF..raftlay cocry ra mq[,arp,malw,, doaaa a.r.p.,. ap wxea.r Prwree,.,apa,,.1 a . . -.. uc ,"-J,f ram[• emmm,.na anwre,m l m vmvm ar.oracrwen 5m ._n-. nn,ovprvaz,m.e,n M mmnvriu vm+wean.aq° am vvayuary,:nan ]axlAm Pq+itvl paMpn win zpnw:+oIDo...... u•lo mn,O anrml moi noun ,zrn.-ea lreolyvmmcO.1 ar, .arur Gnx..drniz[, wr rm m L X�U M „ 'gAtl n Q m.Jrc r. .loon rnmwmavo,na,manlwl pvlpnu pl PYx n nU e^uahwaliwry won%On Y,luam:Amp rnvoa1p a11axrva 4uma 9,Tq n,m}krnpy pc»pa4Atf nM pvurao Ukf':ImmLr."y ,p% :pnnom m,°mmlrml.plow.vmA wrvw owuuimpAn,[u" Nl9m_!44+!W.CnPiNI C;n l9e,.y 1.klmYLt'.Y„aNmf llhlarryPw"'niheDb 4':-al%- ':".' ,n rmasanmkn hapWwww.bgIco.com/bgl_announces_sale_of_terra_renewals_wastewater 4/15/2015 BGL Announces Sale of Terra Renewal's Wastewater Residuals Division - Brown Gibbo... Page 2 of 2 mmm+a. MvmY¢m.wmwe.a.moao,¢nar��.i,ln®wL,wlumxmm.nb a.w trapmbe:K m.ww oRarwmrmm exr. 'Fvn�ma u uncR nu..e.n ss n✓m b SSIm_'Im n aN¢NaueN,mapaox o+eS K^e¢Yea N.v,wc,ee mluam 9,Om� ntl lW m=u�vtl EBRW Wn,mdl.tilYnmN{9mtlim A11yM1 tan 6hez n WONiNdt. OL.IW Ywk Mravaa.ae WSena Fv ma¢NsmetiT ywm wl Other content R.ulm ma¢w€m.emmmnl R Een,,.sonma RebYJ xMeo Mertes^APan R¢labtl pgm.ENram E IG¢Nn LJI` 11¢IX o Vmn RebnvS Xuna bib NoO Pirv¢ryV¢LLy Lvm¢d GID C¢n409GL � IJE LMIfAGG - cLEOEw�G Ofils&sn GlOa®Lugo Lcmpmry.ltl Rg 1¢Rexml se.Gespn Ly xp'm WEa. alroTOME sw wo http://www.bglco.comtbgl_an nounces_sale_of tena_renewals_wastewater 4/15/2015 ORANGE COUNTY SANITATION DISTRICT(OCSD) 10844 Ellis Avenue Fountain Valley, CA 92708-7018 (714)962-2411 FAX(714)593-7784 TERMS AND CONDITIONS FOR PIPIPROPOSAL 1. BlddlnalPr000sina. Bid cost must be submitted online via our BidsOnline 8. Sales and Use Taxes, Unless otherwise specified in the NIB/RFP, system at vnvw.ocad.com. and excepting works of construction or works involving labor and materials which are tax inclusive, the prices quoted In the bid/proposal 2. Request for Interpretation. A prospective bidder/proposer who Is in doubt shall not Include sales and/or use taxes. However, applicable sales as to the meaning of any part of the plans, specifications or other contract and/or use taxes shall be Included in the Purchase Order,if awarded, documents,or finds errors in, or omissions from the plans or specifications, should request, in writing via our BtdsOnline OBA process at 9. Transportation Charles, Unless otherwise specified In the NIB/RFP, www.ocsd.com, an Interpretation or corection. prices quoted In the bid/proposal shall not include charges for transportation, packing, containers,or'in bound height", etc. 0. U ca. Unless otherwise specified in the NIB/RFP,the bidder/proposer shall state in figures the unit prices for which he proposes to supply and 10. Purchase Order Terms and CondMons. The successful deliver the goods, materials, equipment and services described in the bidder/proposer shall receive a Purchase Order, together with the bid/proposal and shall segregate the components at his bid/proposal as Purchase Order Terms and Conditions attached thereto, which shall shown on the bid/proposal online form. form a part of the agreement between the parties. In the event of conflict between the Purchase Order terms and terms of the Contract, 4. Discrepancies. If a discrepancy Occurs between the unit price and the the Contract shall prevall. total stated price for an Item, the unit price shall prevail and the total price shall be corrected accordingly. If a discrepancy occurs between the stated 11. Standard Provlalons/Speclficatlons. If so provided in the NIB/RFP, grand total price for all gems and the actual total for all items, the individual the services performed under the agreement era subject to, and must item prices shall prevail and the grand total price shall be corected conform with, the General Provislons, Standard Specifications and accordingly. If a discrepancy occurs between the terms of the bid/proposal Standard Drawings, as adopted and amended by OCSD from time to and of the NIB/RFP (including plans and specifications), the terms of the time. Refer to the NIB/RFP for determination. NIB/RFP (including plans and specifications)shall prevail. 12. Inspection. By submitting a bid/proposal, the bidder/proposer will be 6. Bid/Proposal Withdrawal. If a bidder/proposer wishes to withdraw his deemed to represent that he has examined: (a) the plans, bid/proposal he may do so without prejudice to himself at any time before specifications and contract documents, and (b) the site where the work the scheduled bid/proposal opening. The withdrawal of a bid/proposal does is to be performed and any surveys or reports concerning the she. not prejudice the right of a bidder/proposer to file a new bid/proposal before the deadline for delivery of bids/pmposals. All bids/proposals shall be 13. Bidder/Praponer OualiScatlons. The bidder/proposer must meet all Irrevocable for 120 days after bid/proposal opening or such other date as licensing and/or other qualifications described in the NIB/RFP. A specified in the NIB/RFP. statement of previous experience and/or financial condition may be required before contract award. 6. Bid/Proposal Delivery. E-bids/proposals will not be accepted after the s- bid submittal date and time. 14. Dlsauallficatlon. No bldder/pmposer may present more than one bid/proposal for the same work or be Interested in more than one 7. BId/Proposal Relaction. OCSD reserves the right to reject any and all bidlpmposel. Apparent collusion among biddem/proposem is cause for bids/proposals and to waive technical defects as the interests of OCSD rejection of their bids/proposals. require. In no event shall OCSD be liable for any costs Incurred In connection with the preparation and submittal of a bid/proposal. ATTACHMENT C(Rev.9/17/2012) 1 (BOND WAIVED) 15. Insurance Requirements. Before beginning work under the agreement, 17. Computer Oat. Suitabflity. Vendor warrants that all functionality the successful bidder/proposer shall provide OCSD with: described in product's user manual has been tested to work for usage A. such insurance and certificates of insurance as may be required by and data dates between January 1 1900 and January 1 2100. Should OCSD in the NIBl and/or any fully executed contract between the it be determined that the product would stop or otherwise fail for dates parties; or in this range, then Vendor shall provide at no additional cost to OCSD a repair or upgrade in a timely fashion. If such repair or upgrade is not B. certificates of commercial general liability, automobile liability, and acceptable to OCSD, then at the sole discretion of OCSD, product may worker's compensation insurance, satisfactory to OCSD. Such insurance shall remain in effect throughout the performance of the agreement. 16, Rdhd Regulremem_ "I A -BId/Proposal Boi c Each o uloroposal Tust be accorrpartled by al bediflod or cashiers check payable to. Orange Ool Sanitatlort: 'Dlstrlct or a bld/proposal bond for the benefit of OCS❑ In o forth satisfactory to OCSD-ane Issued by a quallfled corporate aufety licensed to do buslnc s In tic State of California and haying an agAnf� for. service of process In California; The person executing_ the bid/proposal hand Ipust. have on file with the County Clark County of orange a pc:•�er of a(ton.ey and authi,r p exeodfe the bond oh behalf of the :orparate surety ag�/ti he check or coed shall, Abe at least 1 G of�ikh�t61t ( dl it B. :Other :Bonds. II t rf��Q +I ing, work tender the agreement the! successful blddel ser shall provide OCSD wit (1) such bonds as may be required by OCSD In the NIBiRFP and/or'! any Wlly.executed contract between'.the cadlasi andlor (2) labor and material eonds, satisfactory to OOSD, for 100% of lhe�I agreen,e-'.t prlce: and .(3) afaithful perrormanee acrtr{ satl_sfacbro !a OCSD,'for 100% of that agreement price,- - - Such bonds shall remain In cfiecl tllmu5'-cut the perfomtance of:the: iagreeneh6 C. Carriers, All bonds -List be Issued by a surety authorized by !he State Insurance 7ommisslornr to do business In Cellfomle, ATTACHMENT C(Rev. 9/17/2012) 2 (BONE)WAIVED) Orange County Sanitation District Grit&Screenings Removal Specification No. 5-2015-668BD Exhibit"D" Acknowledgement of Insurance Requirements Orange Canty SaMadon DisW SpecMastlon No. S4015- Orange County Sanitation District(OCSD) 10844 Ellis Avenue, Fountain Valley,CA 92708-7018 Phone (714)962-2411 Fax (714)593-7784 ACKNOWLEDGMENT OF INSURANCE REQUIREMENTS* AND CERTIFICATION OF ABILITY TO PROVIDE AND MAINTAIN COVERAGES SPECIFIED. 1, c('M13 ml;"f,s .the /VI.AaaP-eY� . I•� Q I I((President, aetary,Manager,Ovmer ar Representative) of D&Ai) Vlr441, JrIWNB»S .certify that the Specifications and (Name of Company,Corporation or Owner) General Provisions regarding Insurance requirements ae stated below, for the Purchase Contract designated Specilloation Na. S-7e1S—GLBRD . have been read and understood and that our firm,as bidder an this pmject,Is able b provide end,malnteln Ne coverage as specified below. If the awarded bidder fells to provide said covers a lsa bar en pusafor contract termination. Failure to maintain said coverage shall result . In term tlsn of the gwarded blddels contract �AVIf«/ll Date: r rs (Signature of President,Omer or Authorized Company Representative) Return the signed Acknowledgement to the Buyer handling the bld/RFP. INSURANCE REQUIREMENTS -WE STRONGLY RECOMMEND THIS SHEET BE GIVEN TO YOUR INSURANCE AGENT/BROKER IMMEDIATELY TOENSURE YOUR IRRM CAN COMPL y/rrH OUR E U M Nr5 IN THE EVEWYOURIFIRM ISAWARDEDTHE CONTRACT Once you have been awarded the conuac4 please provide us with a cerdgcam of Insurance and supporting endorsamentsesdaschbedbelow. The actual endorsements(sea Proof of Coverage below far specinc ram numbers)must be provided-a statement on an Insurance certificate willnot be ecceptooklileubflhe actual endorsement We pmfer to receive original electronic doeurpents In PDF farmer via a•mall to rkle/nmerridownicom. Onlylfyou cannotsend electronic cerfsendendorsemehts will we accept hard. coplessentto RandalMolnman,Orange County Sanitation District,Div.260,10844 Ellis Avenue,Fountain Valley,CA 92709. Faxed copies-are not considered original documents;your Insurance Is not;mnsidered in compliance'until all originals are received. 1. . .WORKER'S COMPENSATION INSURANCE: The Vendor shall provide such Workers Compensation Insurance as requlmd-by the Labor Code of the Stale of California, - Including Employees Liabilitylnsumnce with a minimum limit of si3Ooo,c00.00: such Workers Compensation Insurance shall.: be endorsed rode fore wimyorof summation In fawrof OCSP. A statement an an Im uraoae-certificate will notbe accepted lRlieu'of.tha actual endorsements unless yourinsurance camerls State of California insurancefund,(SCIF)and the endorsement numbers 2570 and 2065 are referenced'endue certificate of Insurance. 2. GENERAL.LIABILITY INSURANCE: The Vendor shall maintain during the life of this contract,Including the podod of warranty,Commercial Gcnc:ai Liability Insurance"on on an occurrence basis providing the following minimum limits of liability coverage:S T.0 million per m=Amflce with$2.0 million aggregate separate for this contract, Said Insurance shall Include coverage for the follovArg hazards:Premises-Operallons,blanket contractual liability(for this Agreement),products lwaillty/completed operations (Including my product manufactured or assombed),broad farm property damage,hlanket contractual liability,independent contractors liability personal end advertising Iniury,mablie gquipmedt oviners yid con mums protective liability,cross liability and rabift of Interest clauses.A statement on an Insurance'cerligcats will not be.accepted In lieu of the actual` Rw.a2lalsrk lrml It w/otUlcl2id Auld WDA"semm,l OPERATIONS COMMITTEE Meeting Date TOBd.Of N'. 05/06/15 O5/2]/15 AGENDA REPORT ItemNumber Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Nick Arhontes, P.E., Director of Facilities Support Services SUBJECT: SEWER LINE CLEANING FOR CITY OF TUSTIN AND UNINCORPORATED COUNTY PROPERTY GENERAL MANAGER'S RECOMMENDATION Award a Sole Source contract to Performance Pipeline Technologies for a six-month period, effective July 1, 2015 through December 31, 2015, with (one) 6-month renewal option, for the cleaning services of approximately 90 miles of Area 7 sewer pipelines and manholes for an amount not-to-exceed $202,204. SUMMARY We use contractor services to clean the local sewers in Service Area 7. This area includes the City of Tustin and unincorporated county areas north of Tustin, including the El Modena Islands. Services include combination cleaning per our specifications to remove debris, roots, and grease from 6-inch to 18-inch diameter pipelines and their respective manholes. A quick visual inspection of the related manholes and their frames and covers is also included. Contractor work is monitored by staff. Performance Pipeline Technologies (PPT) is the current contractor and the current contract will expire on June 30, 2015. PPT was originally the lowest responsive bidder using a competitive process and has been performing this service for the past five years through annual renewals. The subject sewers are currently in the process of being transferred following LAFCO's process. We expect the transfer of ownership to be completed in the next six months or less. A month to month type service following our current cleaning plan and schedule best meets our needs. PPT has agreed to hold its current unit price schedule firm during the subject period. We do not need another long term agreement. This approach is recommended by staff as compared to a full new bid process that would only be needed for a short period of time. This approach also provides no lapse in services. This also avoids risks in start-up and learning the system as would be required for potentially a new contractor and their staff. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION In 2010, an annual service contract with four renewals was awarded for this which complied with authority levels of the OCSD's Delegation of Authority. In 2010 the services were budgeted items as part of OCSD's Operational Budget (2010/11 Page 1 of 2 BUDGET PAGE, SECTION 4, PAGE 11, ITEM "LOCAL SEWER LINE CLEANING", PO# 103937-OB / PR# 75791-OR). PPT was the lowest responsive bidder. The total agreement cost is not guaranteed nor is it paid to the Contractor should services not be utilized. CEQA N/A BUDGET / PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the OCSD's Purchasing Ordinance OCSD-44 (Article 1, Section 1.07A). This repair will be funded through the Facilities Engineering and Repair Services Operating Budget (2014-2015 & 2015-2016 Budget Section 6 — Page 56) Object number 54030. The budget is adequate to cover this contract. Date of Approval Contract Amount Continnencv 5/27/15 $ 202,204 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments: Sole Source Contract MAE:JF:eh Page 2 of 2 SOLE SOURCE SERVICE CONTRACT Performance Pipeline Technologies Sewer Line Cleaning for City of Tustin and Unincorporated County Property THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and Performance Pipeline Technologies with a principal business at 5305 Industrial Drive, Huntington Beach, CA 92649 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to retain the services of Contractor for Sewer Line Cleaning for City of Tustin and Unincorportade County Property"Services"; and WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-44; and WHEREAS, on May 27, 2015, the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and education and expertise to accomplish such Services, NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and Contractor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit"A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence: Exhibit"A" Scope of Work Exhibit"B" Not Used Exhibit"C" Acknowledgement of Insurance Requirements Exhibit"D" Not Used 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. Orange County Sanitation District 1 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof. 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The tens "hours", when used in this Contract, shall be as defined in Exhibit"A". 1.9 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation for this Contract shall not exceed the total amount of Two Hundred Two-Thousand Two Hundred Four Dollars ($202,204.00). 3. California Department of Industrial Relations IDIR) Registration: Record of Wages Contractor shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring by the California Department of Industrial Relations. Contractor shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from Contract payments per Section 1776. Contractor shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461 E. 4. Payments Payments shall be made upon approval by the OCSD Project Manager or designee, of invoices submitted for Services completed as described in Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 5. Invoices 5.1 OCSD shall pay within thirty (30) days of completion and receipt and approval by the OCSD Project Manager or designee of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges thereon. Invoices shall include the Purchase Order Number. 5.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaffOOCSD.com and reference the following in the subject line: "INVOICE", the Purchase Order number, the Project Manager, and Sewer Line Cleaning for City of Tustin and Unincorporated County Property. 6. Audit Rights Contractor agrees that, during the tens of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. Orange County Sanitation District 2 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 7. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit "K. Contractor shall perform said Services in accordance with generally accepted industry and professional standards. & Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 9. Contract Term The Services provided under this Contract are made and entered into, to be effective July 1, 2015, and terminate December 31, 2015. 9.1 OCSD may exercise the option to renew the Contract for up to one (1) six-month period based upon the criteria set forth in Exhibit "A", if mutually acceptable Contract terms can be negotiated. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 9.2 Renewals may be made through the OCSD Purchase Order Process. 10. Termination 10.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30)days, pay Contractor for work performed (cost and fee) to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 10.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not meeting specification requirements, if the level of service is inadequate, or any other default of this Contract. 10.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: • if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or • if Contractor sells its business; or • if Contractor breaches any of the terms of this Contract; or • if total amount of compensation exceeds the amount authorized under this Contract. 10.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. 11. Insurance Contractor and all of its subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. Orange County Sanitation District 3 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 12. Indemnification and Hold Harmless Provision Contractor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Contractor's services under this Contract, or by its subcontractor or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 13. Safety Standards and Human Resources (HR) Policies OCSD requires all contractors and service providers to follow and ensure their employees and all subcontractors follow all Federal and State regulations as well as the OCSD Safety Standards while working at OCSD locations. If during the course of the Contract it is discovered that OCSD Safety Standards do not comply with Federal or State regulations then the Contractor is required to follow the most stringent regulatory requirements at no additional cost to OCSD. Contractor and all their employees and subcontractors, shall adhere to all applicable OCSD Safety Standards and Human Resources Policies found at: OCSD.00m, "Doc Central" (bottom of page), under "Safety". 14. Warranties In addition to the Warranties stated in Exhibit"A", the following shall apply: 14.1 Manufacturer's standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract. 14.2 Contractor's warranty: If, within the 12-month period following completion of its Services, OCSD informs Contractor that any part of the Services fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. 15. Performance Time is of the essence in the performance of this Contract and the provisions hereof. 16. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. Orange County Sanitation District 4 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 17. Freight(F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 18. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 19. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 20. Licenses. Permits. Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Contractor. 21. Applicable Laws and Reaulations Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 22. Contractor's Employees Compensation 22.1 Davis-Bacon Act - Contractor will pay and will require all subcontractors to pay all employees on said Contract a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. 22.2 General Prevailing Rate — OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of the same are on file in the office of the engineer of OCSD. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code Section 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. 22.3 Forfeiture For Violation - Contractor shall, as a penalty to OCSD, forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid (either by the Contractor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Orange County Sanitation District 5 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 22.4 Apprentices — Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Contractor shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days or more; or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5)working days or more. 22.5 Workday — In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and the Contractor shall not require more than eight (8) hours of labor in a day from any person employed by it hereunder except as provided in paragraph 19.2 above. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty five dollars ($25.00) for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said Article. Contractor shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Contractor in connection with the project. 22.6 Record of Waaes: Insoection - Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Contract and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of California Labor Code Section 1776, in general. Penalties for non- compliance with the requirements of Section 1776 may be deducted from Contract payments per the requirements of Section 1776. 23. South Coast Air Quality Manaaement District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 24. Governina Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Contract or the performance thereof. 25. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. Orange County Sanitation District 6 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 26. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1)cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover' by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover' as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 27. Dispute Resolution 27.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 27.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrators decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 28. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 29. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. 30. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 31. Damage to OCSD's Propertv Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. Orange County Sanitation District 7 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 32. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this Contract without the prior written consent from OCSD. 33. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD's employees. 34. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 35. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 36. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Contract. 37. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 36. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 39. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 8 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property 40. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address or which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Larry Roberson Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Contractor: Gene Glassburner Performance Pipeline Technologies 5305 Industrial Drive Huntington Beach, CA 92649 Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: Tom Beamish Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Contracts/Purchasing Manager COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 9 of 9 Sewer Line Cleaning for City of Tustin and Unincorporated County Property OPERATIONS COMMITTEE Neeengoate TOBd of Di,. os/oe/rs os/n/is AGENDA REPORT em Number Item Number 6 a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY AGREEMENT GENERAL MANAGER'S RECOMMENDATION Approve an Agreement with Inland Empire Regional Composting Authority (IERCA) to receive and compost up to 50 wet tons per day (Monday thru Friday) of the Orange County Sanitation District's biosolids at a tipping fee of$54 per wet ton of biosolids and an administrative fee of $2 per wet ton of biosolids exclusive of trucking costs for a contract term of one-year commencing on the date of execution of the Agreement, with three one-year renewal options in a total annual amount not to exceed $900,000/per year. SUMMARY The Orange County Sanitation District (OCSD) continues to actively look for biosolids management options to maintain a long-term sustainable program promoting beneficial use. Through the principles of OCSD's biosolids management policy (Resolution OCSD 13-03), OCSD maintains diverse biosolids management options using multiple contractors, markets, and facilities while maintaining fail-safe back-up capacity and utilizing local facilities and markets. OCSD has been approached by the Sanitation Districts of Los Angeles County and Inland Empire Utilities Agency (together known as Inland Empire Regional Composting Authority) offering to provide an option to manage OCSD's biosolids at their Inland Empire Regional Composting Facility (IERCF) located in the City of Rancho Cucamonga. This option will reduce hauling mileage. The IERCA offers to receive and compost 50 wet tons of OCSD's biosolids per day (five days a week) at their composting facility, at a tipping fee of$54 per ton of biosolids and an administrative fee of $2 per ton of biosolids. The tipping fee is subject to increase during the term of the Agreement, but will not exceed the annual Consumer Price Index. The term of the Agreement is for a period of one year, with three one-year renewal options. With a hauling fee of $11 per ton (services provided by Sierra Transportation Inc. Contract effective November 22, 2013), the total cost is $67 per ton during the first year. Page 1 of 5 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The IERCA was formed on February 27, 2002 as a Joint Powers Authority (JPA) to divert organic solids from landfill disposal and to recycle organic products generated from within their respective service areas. The JPA was formed to implement the shared goal to develop a sustainable biosolids management option. IERCA is governed by a six-member Board, comprised of two governing board members from each agency and their respective General Managers. The Chief Financial Officer (CFO) of IEUA serves as the Treasurer. In March 2007, the joint powers agency completed construction of IERCF. Located at 12645 Sixth Street, Rancho Cucamonga, California, IERCF is considered the nation's largest indoor biosolids composting facility, consisting of 445,275 square feet, receiving and processing over 200,000 wet tons of biosolids and wood, producing approximately 90,000 tons of compost per year. On November 14, 2014, IERCA contacted OCSD offering to process biosolids at their regional composting facility and on March 3, 2015, sent a draft Agreement to OCSD with the following general terms: 1. Tipping Fee/Rate: • Tipping Fee: $54/WT. Does not include transportation cost. • Rate increases will not exceed the annual Consumer Price Index 2. Other Fees: • Administrative fee $2 per wet ton of biosolids (expenses related to record keeping and processing) 3. Amount of Biosolids: • 50 wet tons of biosolids per day five days/week) 4. Term/Renewals • One-year term with up to three one-year renewals. Consistent with OCSD biosolids management policy, this biosolids management option will provide: • Local Option: Using a local option reduces environmental impacts associated with hauling greater distances. IERCF is located in the City of Rancho Cucamonga with a distance of approximately 48 miles from OCSD compared to Synagro's composting facilities in Kern (153 miles) and Yuma (263 miles). • Additional Contingency to Process Sub-Class 8 Biosolids: Because of the multiple projects impacting OCSD's solids handling facilities, along with efforts associated with the GWRS expansion, it is anticipated that there will be uncertainties of OCSD's biosolids quality and quantity in the near-term. Having this option will provide OCSD a local contingency to process sub-Class B biosolids, if needed. Page 2 of 5 • Increased Diversification: IERCF option allows for biosolids management diversification to maintain sustainability. Estimated Proposed Cost Distribution Average TPD FY 2015.16 Assumption Tons Cost per ton Total cost per Vendor Location % Allocated per day w/fuel site S na ro South Kern 31.8% 251 $ 77.18 $ 7,071,242 S na ro AZ Soils 11.5% 91 $ 64.48 $ 2,137,578 IEUA IECRF 4.5% 36 $ 67.00 $ 871,000 Tule Ranch Yuma-Farm 43.9% 347 $ 54.80 $ 6,936,995 Tule Ranch Yuma-Lime stab. 0.22% 2 $ 67.30 $ 42,904 OCWR OC Landfill 8% 64 $ 53.70 $ 1,254,537 100% Total Cost: $18,314,256 Average Cost Per Ton: $ 63.51 CEQA OCSD, as lead agency, prepared a Program Environmental Impact Report entitled "Orange County Sanitation District 1999 Strategic Plan Program Environmental Impact Report," State Clearinghouse No. 97101065 (the 1999 PEIR). The Board certified the 1999 PEIR on October 27, 1999, and OCSD filed a Notice of Determination on October 29, 1999. The 1999 Strategic Plan analyzed the wastewater collection, treatment, and disposal facilities needed to accommodate the projected growth in OCSD's service area through the year 2020, and recommended expansion of OCSD's facilities. The 1999 Strategic Plan projected an increase in OCSD's biosolids production from the 1996/1997 baseline level of 180,000 wet tons per year (WTPY), and 7,200 annual haul truck trips, to 421,000 WTPY and 16,840 annual haul truck trips. (1999 PEIR, Table 8-1). The 1999 PEIR analyzed the environmental effects of the 1999 Strategic Plan. The 1999 PEIR assumed that an additional 38 haul truck trips per day would be required to accommodate the projected increase in biosolids production (from the baseline of 27 truck trips per day to 65 truck trips per day in 2020). (1999 PER, Table 8-3). The Inland Empire Utilities Agency (Agency), as lead agency, prepared a Facilities Master Plan Program Environmental Impact Report which was certified in 2002 (the 2002 PEIR). Among other things, the 2002 PEIR evaluated the programmatic impacts of the Organics Management Master Plan, including the development and operation of a composting facility. In 2003, site-specific details became available about the proposed Inland Empire Regional Composting Facility (Facility). The Agency prepared Page 3 of 5 an initial study and determined that the Composting Facility was within the scope of the 2002 PEIR (the "2003 Study"). The 2003 Study stated that the design capacity of the Composting Facility was 150,000 WTPY, and assumed that the Facility would receive 422 wet tons per day of biosolids for processing, or 17 trucks per day. (2003 Study, pp. 1-2; 36). The activities contemplated in the Agreement are subsequent activities within the scope of the 1999 PEIR, 2002 PEIR, and 2003 Study. OCSD's total biosolids production is currently 30 truck trips per day, which is within the scope of biosolids production analyzed in the 1999 PEIR of up to 65 truck trips per day. The Agreement does not call for an expansion of OCSD's biosolids production. Under the Agreement, OCSD will send 50 wet tons per day of biosolids to the Facility, or 2 trucks per day. The Facility is currently receiving 21 trucks per day. While existing conditions exceed the Facility's assumed operation in the 2003 Study by 4 trucks per day, this increase is de minimis. The Agreement will not result in any further increase in the number of biosolids trucks received at the Facility per day. OCSD's 2 trucks per day will replace 2 trucks per day that were previously received at the Facility, but that will now be sent to Westlake Farms. As a result, the Facility will continue to receive 21 trucks per day with implementation of the Agreement. In fact, OCSD's truck trips to the Facility may actually reduce impacts created by existing conditions. OCSD's 2 truck trips per day that will be sent to Facility will take the place of currently existing trips to the Tule Ranch land application site in Yuma, Arizona. The truck trips to the Tule Ranch facility in Arizona are approximately 263 miles each way. The truck trips to the Facility are approximately 48 miles each way. The truck trips to the Facility will accordingly result in a substantial reduction in the total vehicle miles traveled. OCSD has determined, therefore, that the Agreement is within the scope of the 1999 PEIR, the 2002 PEIR, and the 2003 Study, and that no additional documentation is required. (Public Resources Code § 21166; CEQA Guidelines §§ 15168, 15162). Even if the Agreement was not within the scope of these prior documents, the activities contemplated within the Agreement are exempt from CEQA pursuant to: (1) CEQA's Class 1 Exemption (CEQA Guidelines § 15301); and (2) CEQA's "Common Sense" Exemption (CEQA Guidelines § 15061(b)(3)). The Class 1 exemption applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private facilities involving negligible or no expansion of a use beyond the use existing at the time of the lead agency's CEQA determination. (Cal. Code Regs., Tit. 14, § 15301). Under existing conditions, the Facility is receiving 21 trucks per day of biosolids for processing. Under the Agreement, the Facility will continue to receive 21 trucks per day of biosolids for processing. OCSD's rate of operation and biosolids production will not change under the Agreement. As a result, the Agreement calls for the operation of existing public facilities involving a negligible or no expansion of the uses existing at the time that OCSD's Board considers the Agreement and makes its CEQA determination. The Agreement is therefore exempt from CEQA review pursuant to CEQA Guidelines Section 15301. Page 4 of 5 CEQA's "Common Sense" Exemption applies where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (CEQA Guidelines § 15061(b)(3)). In order to determine whether a project will have a significant environmental effect, a lead agency must first define the baseline environmental conditions. The "project" for CEQA purposes consists of changes in the baseline conditions, if any, that the lead agency's action will cause. The baseline usually consists of the physical conditions that exist when the lead agency commences CEQA review. (CEQA Guidelines § 15125(a)). As explained above, the number of trucks received for processing at the Facility will not change. OCSD's rate of operation and biosolids production will not change under the Agreement. And, the truck trips to the Facility will take the place of existing trips to the Tule Ranch facility in Arizona, which will result in a substantial reduction in the total vehicle miles traveled by OCSD trucks. It can be seen with certainty, therefore, that there is no possibility that the Agreement may have a significant effect on the environment and the Agreement is exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3). BUDGET/PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the OCSD's Purchasing Ordinance. This item has been budgeted. (Line item: Section 5, Page 6). Project contingency funds will not be used for this Agreement. Date of ADuroval Contract Amount Contingency 05/27/15 $900,000 N/A ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD webske (www.ocsd.corn with the complete agenda package and attachments: • Agreement for the Reuse of Biosolids • PowerPoint Presentation from Operations Committee Meeting 05/06/15 JC:jb:gc Page 5 of 5 INLAND EMPIRE REGIONAL COMPOSTING A U T H O R I T Y AGREEMENT NUMBER 4600001879 FOR THE REUSE OF BIOSOLIDS This Agreement, for the Reuse of Biosolids ("Agreement"), dated 2015 ("Effective Date"), and is between the Inland Empire Regional Composting Authority (IERCA, or "the Authority") and the Orange County Sanitation District ("the District"). The Authority and the District are referred to in this Agreement collectively as "the Parties." The Authority is a Joint Powers Authority formed by and between the Inland Empire Utilities Agency (IEUA), a Municipal Water District organized and operating pursuant to the California Water Code Sections 71000, et seq., and County Sanitation District No. 2 of Los Angeles County (LACSD), a special district organized and operating pursuant to the California Health and Safety Code Sections 4700, et seq. The Authority operates the hiland Empire Regional Composting Facility(IERCF) located at 12645 Sixth Street, Rancho Cucamonga, CA 91739 ("the Site"). The Authority has all permits and approvals necessary for operation of the Site and desires to reuse Biosolids produced at the District's facilities- 1. DEFINITIONS 1.1 Biosolids means municipal sewage sludge resulting from the treatment of wastewater at the District's facilities that is digested and meets Class B and Table 3 quality standards for land application under Part 503 of Title 40 of the Code of Federal Regulations, "Standards for the Use and Disposal of Sewage Sludge" ("Part 503 Rule"), and dewatered to an annual average of approximately 15%total solids or greater. 1.2 State Certified Weigh Station means any truck weigh station permitted by the State of California to certify weights for commerce. 1.3 Weighmaster's Certificates means certificates obtained in accordance with weighing procedures prescribed in Chapter 7 (commencing with Section 12700) of Division 5 of the California Business and Professions Code administered by the Division of Measurement Standards of the California Department of Food and Agriculture. 1 2. BIOSOLIDS TRANSPORTATION AND REUSE 2.1 The District shall transport up to approximately 250 wet tons per week, or 50 wet tons per day of Biosolids from its facilities to the Site for composting, Monday through Friday. This quantity is subject to change and may be adjusted by agreement of the Parties. 2.2 Site delivery hours are from 6:30AM to 2:30PM, Monday through Friday. Hours may change at the sole discretion of the Authority. 2.3 In event the District wishes to deliver to the Site sewage sludge that does not meet the Part 503 Rule Class B Biosolids Pathogen Reduction Requirements specific to mean cell residence time and temperature for anaerobic digestion, the District shall notify the Authority within reasonable time and request approval to deliver for compost such material in accordance with applicable legal requirements as detailed in Section 3 of this Agreement. The Authority reserves the right not to accept and process such sewage sludge material at the Site. 2.4 The District shall use end dump trailers or farm beds to transport Biosolids to the Site. End dumps may not have extended aprons on the rear of the trailers. Trailers delivering Biosolids to the Site must meet the following clearance specifications to off-load material into the biosolids hoppers: 2.4.1 All live bottom belt type trailers require a minimum clear distance of 15" between the ground surface and any trailer structure beyond or past the rear tires. This requirement does not apply to any flexible structure like a mud flap. Flexible structures may be removed or re-positioned to allow adequate clearance; 2.4.2 All end dump trailers must possess the required belt trailers clearance in addition to having a minimum clearance of 19" between the ground surface and any fixed trailer structure when the trailer is in the fully raised or in the dumping position. 2.5 The Authority shall compost all Biosolids in accordance with applicable legal requirements as detailed in Section 3 of this Agreement. The Authority may not use any other method of reuse for the Biosolids without the prior written agreement of the District. 2.6 The Authority shall determine and record the total tonnage delivered to the Site. The truck weigh station at the Site is certified by the State and will be used to issue a Weighmaster's Certificate for each load measured. The Authority shall use the Site's measured tonnage for its billing to the District. Weighmaster's Certificates submitted by the Authority will show the certified gross weight of each load in each billing and the certified tare weight of each vehicle. 3. PERMITS AND REGULATORY COMPLIANCE 3.1 The Authority shall obtain and maintain in effect all necessary licenses, Permits, and other approvals legally required in order to perform all activities and operations provided for in this Agreement. The Authority and all processes utilized at the Site shall comply with all applicable local, state, and federal laws, rules, regulations, and pronouncements, including but not limited to the following: 2 3.1.1 The Authority shall perform all activities and operations in accordance with the requirements, as applicable, of the California Regional Water Quality Control Board- Santa Ana Region, California State Water Resources Control Board, including the General Order (General Waste Discharge Requirements for the Discharge of Biosolids to Land for Use in Agricultural, Silvicultural, Horticultural, and Land Reclamation Activities), Parts 257 and 503 of Title 40 of the Code of Federal Regulations (Criteria for Classification of Solid Waste Disposal Facilities and Practices-Application to Land Used for the Production of Food Chain Crops and Standards for the Use and Disposal of Sewage Sludge, respectively), South Coast Air Quality Management District Rule 1133.2. The Authority shall also operate in compliance with all current waste discharge requirements contained in the NPDES permits for the District's facility(s)that serves as the source(s) of Biosolids delivered to the Authority. District shall make their NPDES permit available to the Authority upon request. 3.12 The Authority acknowledges that Part 503 of Title 40 of the Code of Federal Regulations is a self-implementing rule and that the Authority's activities and operations performed at the Site must comply with all applicable general requirements of the rule, including, but not limited to: pollutant limits, management practices, operational standards, monitoring,recordkeeping, and reporting. The Authority shall provide all information relevant to the activities and operations at the Sites that the District may need or request to complete NPDES or other permit applications or reports. 3.2 The District shall obtain and maintain in effect all necessary licenses, permits, and other approvals legally required in order to perform all activities and operations provided for in this Agreement. The District and Biosolids-generating processes at its facilities shall comply with all applicable local, state, and federal laws, rules, and regulations and orders, including but not limited to Part 503 of Title 40 of the Code of Federal Regulations. The District may transport to the Site only Biosolids that meet the Class B pathogen reduction requirements of 503.32(b), vector attraction reduction requirements of 503.33(b)(1), and metals concentration limits of 503.13(b)(3) Table 3,unless other arrangement are made per Section 2.3. 4. SITE INSPECTION, MONITORING,RECORDKEEPING,AND REPORTS 4.1 The Authority shall grant the District and its representatives access to the Site during normal business hours to conduct inspections of the composting activities. The District shall likewise grant the Authority and its representatives access to its treatment facilities during normal business hours. 4.2 The Authority shall keep complete and correct daily records of all composting activities, including: the date, the origin, and quantity of each load of Biosolids composted; site management practices; and any sampling and laboratory test results regarding the composting program. The Authority shall grant the District timely access to all such records. Likewise, the Authority shall have timely access to the District's Biosolids records and data demonstrating compliance with all federal, state, and local laws, regulations and orders. 3 4.3 The Authority shall submit monthly reports to the District that demonstrate compliance with all required permits and authorizations. The Authority shall submit the reports within 30 days after the close of each reporting period. The reports must include, at a minimum, a description of all activities and operations performed during the reporting period, the items described in Section 4.2, and a certification that all activities and operations were performed in compliance with all applicable regulations. The Authority shall forward to the District, within five days of receipt or transmission, copies of all correspondence with regulatory agencies in regards to the activities or operations performed at the Site. Similarly, the District shall famish monthly, annual, and other periodic reports to the Authority detailing and certifying compliance with permits and applicable regulations. The District shall provide all information relevant to its operations that the Authority may need or request to complete regulatory reports or permits. 4.4 The Parties agree to notify one another by no later than the next business day of its receipt of any notice, whether formal or informal, of a legal, governmental, judicial, administrative, or similar proceeding, action, or enforcement, pending or threatened, that may affect its ability to lawfully fulfill obligations of this Agreement. The District shall forward to the Authority, within 5 days of receipt or transmission by the District, copies of all correspondence with regulatory agencies in regards to its Biosolids operations. 4.5 The District shall perform all sampling for any monitoring and laboratory analyses of Biosolids required by any federal, state, or local laws, regulations or orders prior to transporting such Biosolids to the Authority. The Authority shall perform all other monitoring and laboratory analyses required by any federal, state, or local laws, regulations, or orders including, but not limited to, any monitoring or laboratory analysis of Biosolids after receipt by the Authority. 5. COMPOSITION OF BIOSOLIDS The District warrants that all Biosolids released to the Authority will be non-hazardous under Title 22, Division 4.5, Chapter 11, Article 3 of the California Code of Regulations. Neither the District nor the Authority shall add any material to the Biosolids that is classified as hazardous, or which creates by-products or residues classified as hazardous, under federal or state laws,regulations, or orders. 6. INCLEMENT WEATHER 6.1 The Parties shall each provide any facilities necessary to ensure their ability to remove,transport, and compost Biosolids during typical inclement weather. 6.2 The Parties acknowledge that severe weather conditions may reduce or suspend the Parties' abilities to deliver and/or compost Biosolids. If either Party reasonably determines that a reduction or suspension is necessary, the Party shall provide the other Party, to the extent reasonably possible: 1) a 24-hour minimum notice of reduction or cessation of operations; and 2) an estimate of when the operations will resume. See also Section 11,Force Majeure. 4 7. FEE FOR BIOSOLIDS REUSE 7.1 The District shall pay to the Authority for Biosolids received and processed at a base fee of$54.00 per wet ton, plus an administrative fee of$2.00 per wet ton, and any other adjustments provided for in this Agreement. The District shall pay all hauling and transportation-related costs. 7.2 The Authority shall submit invoices to the District on a monthly basis and the District shall make payment to the Authority within thirty(30) days of receipt. 7.3 If the term of this Agreement extends beyond the initial one-year term provided for in Section 12 below, either the District or the Authority may request an adjustment in the fee. 7.4 If during the term of this Agreement, the Authority incurs a new and unforeseen fee or other cost not previously paid by the Authority, the Authority may request an adjustment in the fee. The Authority shall provide written documentation to the District verifying the increased cost. Rate increases during the current term will not exceed the annual Consumer Price Index for the Los Angeles-Orange County Metropolitan Area for all urban consumers (CPI-U) available as of the date of the requested rate increase. The annual CPI-U will not be justification for any rate reduction. 8. OWNERSHIP OF BIOSOLIDS 8.1 The District shall retain ownership of all Biosolids during transport, up to and including off-loading of the Biosolids from the District's trucks. The District shall at all times manage, direct, oversee, and/or conduct operations during transport, and is responsible for leakage prevention and spill mitigation, and compliance with all applicable environmental regulations. 8.2 The Authority shall become the owner of all Biosolids delivered to the Site after off-loading and acceptance of the Biosolids from the District's trucks. The Authority shall compost all Biosolids in accordance with this Agreement. The Authority may not use or dispose of the Biosolids in any other manner without written consent from the District. The Authority shall comply with all applicable laws and regulations in connection with the marketing,use, and sale of the composted Biosolids. 9. INSURANCE The District shall require its contractors transporting Biosolids to the Site to obtain and keep in force during the term of this Agreement, at their sole expense, comprehensive general liability insurance with endorsements naming the Authority as an additional insured, covering the transportation of Biosolids in any vehicle whether owned or leased, whether liability is attributable to the District or the Authority. The policy or policies most insure the Authority, its directors, officers, employees, and agents against all claims arising out of or in connection with the activities and operations relating to the transportation and delivery of Biosolids to the 5 Facility. The coverage must provide the following minimum limits, which may be increased during the term of this Agreement as requested by the Authority in writing and agreed to in writing by the District: Automobile Liability: Bodily Injury $5,000,000 each person $5,000,000 each occurrence Property Damage $5,000,000 each occurrence $5,000,000 aggregate General Liability: Bodily Injury $5,000,000 each occurrence $5,000,000 aggregate products and completed operations Property Damage $5,000,000 each occurrence $5,000,000 aggregate Coverage must be provided by an insurer that has at least an "A" Policy Holder's Rating and"X" Financial Rating in accordance with the current Best's Key Rating Guide. 9.1 The Contractor shall provide the Authority with evidence of coverage by providing certificates of insurance and endorsements and, at the Authority's request, copies of all required policies plus all attached endorsements for the Authority's review. 9.2 The Contractor shall demonstrate to the Authority that it carries Workers Compensation Insurance in accordance with legal requirements and Waiver of Subrogation. 10. INDEMNITY In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Government Code, each Party, pursuant to the authorization contained in Sections 895.4 and 895.6 of the Government Code, hereby agrees to and shall indemnify and hold harmless the other Party, and its elected officials,officers, agents, and employees from and against any and all losses, liability, damages, claims, suits, actions, and administrative proceedings or demands (including reasonable attorneys fees) relating to acts or omissions of the indemnitor, its officers, agents, or employees arising out of or incidental to the performance of any of the provisions of this Agreement. Neither Party assumes liability for the acts or omissions of persons other than each Party's respective officers, agents, or employees. In the event judgment is entered against the Parties because of joint or concurrent negligence of the Parties, or their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a Court of competent jurisdiction. This section shall survive termination of the Agreement. 6 11. FORCE MAJEURE Neither the Authority nor the District shall be responsible or liable for failure to meet their respective obligations under this Agreement if such failure is due to causes beyond the Authority's or the District's control. Such causes include, but are not limited to: strikes, fire, flood,civil disorder, acts of God or of a public enemy, acts of the federal government,or any unit of state or local government in either its sovereign or contractual capacity, epidemics, freight embargoes or delays in transportation, and changes in federal, state, or local law that renders the District's Biosolids impermissible for transportation or composting. Each Party shall immediately notify the other Party via email to administrative staff and in writing, in accordance with Section 15, of the occurrence of any condition believed to constitute a force majeure under this section. If a condition of force majeure exists for 30 days or more, either Party may terminate this Agreement by giving notice in writing in accordance with Section 15. The notice will become effective 24 hours after receipt. 12. DURATION OF AGREEMENT This Agreement will be effective on the Effective Date and will continue in effect for a period of one year. The Parties may, upon mutual written agreement, extend the duration of the Agreement on a year to year basis with up to three annual extensions. 13. SUSPENSION, TERMINATION,AND EARLY TERMINATION 13.1 Suspension. The Authority may suspend its receipt of Biosolids if it determines that the District can no longer timely and legally perform the required obligations of this Agreement. Likewise, the District may suspend shipments of Biosolids if it determines that the Authority can no longer timely or legally perform the required services, or if unacceptable conditions exist at the Site. The suspending Party may lift the suspension and allow operations to resume if it determines that any unacceptable conditions have been corrected. 13.2 Termination. Either Party may terminate this Agreement by providing the other Party with a 90- day notice in writing in accordance with Section 15. 13.3 Early Termination. The Authority and the District, by written agreement, may terminate this Agreement at any time. 14. ADDITIONAL PROVISIONS 14.1 Entire Agreement This Agreement represents the entire agreement and understanding between the Authority and the District as to those matters stated in this Agreement. No prior oral or written understanding is of any force or effect in regard to any matter covered by this Agreement. 7 14.2 Assignment. Neither the Authority nor the District may sell, assign, or sub- contract its interest and/or obligations in this Agreement without the prior written and mutual agreement of the Parties. 14.3 Governing Law. The provisions of this Agreement will be interpreted and enforced in accordance with the laws of the State of California. 14.4 Counterparts. This Agreement may be executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15. NOTICE Except as otherwise required, any notice, payment, or instrument required or permitted to be given under this Agreement will be deemed received upon a signed receipt of personal delivery or 72 hours after deposit in any United States Post Office, registered or certified, postage prepaid and addressed to the Party for whom intended, as follows: TO THE AUTHORITY: Inland Empire Regional Composting Authority Attn: Jeff Ziegenbein 12645 Sixth Street Rancho Cucamonga,CA 91739 TO THE DISTRICT: Orange County Sanitation District Attn: General Manager Post Office Box 8127 Fountain Valley, Ca 92728-8127 [SIGNATURE PAGE FOLLOWS] S IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written. ORANGE COUNTY SANITATION DISTRICT By: Tom Beamish Chair of the Board of Directors By: Kelly Lore Acting Clerk of the Board of Directors APPROVED AS TO FORM: By: General Counsel INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY Jeff Ziegenbein Project Manager 9 OCSD' s Biosolids Program & Composting Contract Jim Colston, Environmental Compliance Manager Where Do OCSD's Biosolids Go ? JHjy SANI TqT We're here for you. Orange 2 � � 9 a n 4 9Q � Fp t� County1 R . o- OCSD Biosolids Compliance Team December 2013 2013 Updated Biosolids Policy ( Board Resolution — see handout) • Diversified portfolio of offsite biosolids management options : — Multiple contractors — Multiple markets (especially in-county and in-basin) — Multiple facilities — 100% of daily production in fail-safe back-up capacity • Decisions strive to balance financial, environmental, and societal considerations Total Biosolids (tons per day) 850 $17.8M, 780 tpd GWRS expansion 750 IRWD solids facilities online 650 - Secondary ramp-up (2002-2012) Plant 1 centrifuges online 2016-17 Projects Plant 2 centrifuges online 550 Synagro contract • New Biosolids Master Plan $11 .3M, 546 tpd • Onsite energy research 450 2003 2008 2013 2018 2023 2028 Fiscal Year Inland Empire Regional Composting Authority ( IERCA) Agreement Inland Empire Regional Composting Facility: Location rni Baldv ci r}2� - -50 miles w ' Muv ny ba.Duact — Glend a no ytlower Rancho ' illa9e San Dimas _. $a0 Btu Covina Claremont ._.CDCamOn(J ".■■■.. „12645 6th St Wes valindaind Pomona a� Ontario Cy1¢ u _ , Diam .d.?� nand a Puente Chino ier Jurupa Valley I a f Howland Chino Is Heights Eastv le �� t ittier ea Riverside Chhi N rco Fullerton La Habra Chin Hills Stete Par ao Yorba Linda • _ y '� of Woodcrest a EIerrito �♦� ahei ss \ V'la Park Lake Marrhe s Estelle,- ♦�== ♦'' Rq1 Mountain eserve`0 ran nh rush stminster Santa 261 silverado �, • %�'. \Fdun[ain `a .11ey Irvine NL.ke ❑tingto❑ a<t Trabuco 3each ake Forest nyon . 5¢hakelbmi s� Newport yinaye. Reach,,.., 73 . . ^ � J �� � �� �K, - __ r--� e� ��f ., �• _ b � • . �_ - � ' ���. 0 � � � i � �` IERCA Agreement General Terms 1. Tipping Fee / Rate: ■ Tipping Fee: $54 per ton Estimating $11 per ton transportation cost 2. Other Fees: ■ Administrative fee $2 per ton of biosolids 3. Not to Exceed: ■ $900,000 4. Amount of Biosolids: ■ 50 tons (2 trucks) of biosolids per day ■ 10 trucks per week 5. Term / Renewals: ■ One-year term with up to three one-year renewals blk\ Estimated Distribution & Cost Changes Before Inland Empire After Inland Empire FY 2015-16 Regional Composting Facility Regional Composting Facility Avg Tons Cost per ton Avg Tons Cost per ton Contractor Location 7_da w fuel Total cost per site 7_da w fuel Total cost per site IERCA IERCF compost - - $ 35 $ 67.00 $ 855,925 Tule Ranch Yuma - Farm 3" $ 54.80 $ 6,880,688 309 $ 54.80 $ 6,180,618 Synagro South Kern compost 251 $ 77.18 $ 7,070,846 251 $ 77.18 $ 7,070,846 Synagro AZ Soils compost 91 $ 64.48 $ 2,141,703 91 $ 64.48 $ 2,141,703 OCWR OC Landfill 64 $ 53.70 $ 1,254,432 64 $ 53.70 $ 1,254,432 Total Tons per day 750 Total Cost: $ 17,347,669 Total Cost: $ 17,503,524 Ave age Average Cost $ 63.51 C st $ 63.94 Per Ton: Per on: $158,600 additional cost or $0.44 average cost per ton Biosolids Contractor Facilities — June 2015 750 tons per day (7-day avg), 210 trucks per week $75 / ton $67 / ton 32% Compost PROPOSED 4% Compost Synagro — South Kern IERCA — Inland Empire Kern County San Bernardino County 250 tons/day; 70 trucks/wk 35 tons/day; 10 trucks/wk CA vV $61 / ton AZ 12% Compost 1 Synagro — AZ Soils La Paz County 70 tons/day; 20 trucks/wk $53 / ton 8% Landfill $54 / ton OCWR — Prima Deshecha 44% Fertilizing Farm Soil San Juan Capistrano, Orange County Tule Ranch — AgTech / Desert Ridge upto 70 tons/day; 20 trucks/wk Yuma County 400 to 110 trucks/wk rev 4/15/15 Questions? ' �IOSOLIDS OPERATIONS COMMITTEE Needng pate TOBd.Of DIl. 0 1061 OS/27/16 AGENDA REPORT Item Number Item Number 7 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: NEWPORT FORCE MAIN REHABILITATION, PROJECT NO. 5-60 GENERAL MANAGER'S RECOMMENDATION A. Approve a project budget increase of $4,471,403 for a total project budget of $56,687,403 for Newport Force Main Rehabilitation, Project No. 5-60; B. Approve a contingency increase of $4,038,650 (11%) to the construction contract with Kiewit Infrastructure West Company for Newport Force Main Rehabilitation, Project No. 5-60, for a total contingency of$7,343,000 (20%); and, C. Approve Amendment No. 3 to the Professional Consultant Services Agreement with Brown & Caldwell to provide construction support services for Newport Force Main Rehabilitation, Project No. 5-60, for $432,753, increasing the total amount not to exceed $3,071,639. SUMMARY The purpose of this project is to rehabilitate and upsize the Newport Force Main system located on Pacific Coast Highway in Newport Beach between the Bitter Point Pump Station and Dover Drive. Rehabilitation is necessary because the Newport Force Main system is more than 50 years old and has experienced multiple structural failures due to corrosion since 1984. The project will correct the wet weather hydraulic deficiency of the Newport Force Main system and extend the life another 50 years. More than half of the force main system will be rehabilitated rather than replaced to minimize impacts to the community, businesses, tourism, and the environment. The construction of this project includes various rehabilitation methods, including cured- in-place pipe for rehabilitation, open-cut method for replacement, and tunneling for replacement of pipe in difficult to access locations to minimize community impacts. In addition, the project is conducted in two phases to allow Pacific Coast Highway to have traffic lanes restored for the summer months. The project will enter phase two following Labor Day in September 2015. Numerous challenges have arisen during phase one of construction including debris and sixteen wood piles in the path of the micro tunnel equipment that needed to be removed through excavation, a break in the West Lido Force Main in November 2014, utility conflicts, and changes to traffic control constraints. Page 1 of 4 Although most utility conflicts were remedied, a medium gas pressure line was in a different location than shown on records and has caused the microtunneling operation to cease. The microtunneling equipment will require excavation to retrieve it, lane closures, restriping, and traffic control. PRIOR COMMITTEE/BOARD ACTIONS January 2015 — Approved Amendment No. 1 to the Professional Consultant Services Agreement with Brown & Caldwell for engineering services for Newport Force Main Rehabilitation, Project No. 5-60, in the amount of $251,610, increasing the total amount not to exceed $2,483,535. April 2014 — Approved a Professional Consultant Services Agreement with Brown & Caldwell for engineering services for Newport Force Main Rehabilitation, Project No. 5-60, for an amount not to exceed $2,231,925; and approved a contingency of $178,554 (8%). March 2014 - Awarded a Construction Contract to Kiewit Infrastructure West Company for a total amount not to exceed $36,715,000, and approved a contingency of $3,304,350 (9%). ADDITIONAL INFORMATION The construction contract was awarded for $36,715,000, and the approved contingency of 9% is insufficient to cover costs for the anticipated changes. Additional contingency is requested for changed or unknown conditions, modifications to sequencing and methods to reduce the impact on the surrounding community, and to repair a broken pipe connecting the Lido Pump Station to the South Force Main. These activities include the removal of obstructions (debris, Imhoff tank, 16 wood piles), and extraction of the microtunneling equipment, repairs to the West Lido Force Main prior to phase two, and modifications to some construction pit locations due to utility conflicts. The total additional work for the project is estimated at $4,038,650 and the approved contingency of 9% is insufficient to cover costs for the anticipated changes. Brown & Caldwell furnished engineering services for the design of Project No. 5-60, and is currently providing engineering support services during construction. Brown & Caldwell and its subconsultants have provided on-going support for the project. Due to the location of the work, limits related to traffic, and the unknown factors in underground rehabilitation projects, Brown & Caldwell's effort has been greater than expected. Unplanned work includes significant revisions to traffic control plans, review of a change of plans to open cut through Dover to reduce community impacts, additional geotechnical support when the microtunneling operation encountered obstacles, observation of well installations to reduce the number of wells proposed by the Contractor, design of structural bracing for recent field modifications at the Bay Bridge Valve Vault, and structural engineering for modifications to locate a new pump at Bay Bridge Pump Station. Page 2 of 4 This Amendment will authorize Brown & Caldwell to provide support during the remainder of phase one and through phase two of this project. Additional consultant services with Brown & Caldwell will provide the following: Description Cost Traffic Control: Traffic control plan revisions per City of Newport $139,492 Beach requests and schedule recovery efforts Dewatering: Additional Dewatering design, oversight, and $113,840 implementation Geotechnical: Additional geotechnical oversight and support during $ 59,489 microtunneling and obstruction removal efforts Design Changes and Schedule Recovery Efforts: $119,932 1) Dover Drive change from microtunneling to open cut 2) Bracing requirements for Bay Bridge Valve Vault tie in and modifications 3) Structural engineering design and support for 5th pump installation at Bay Bridge Pump Station 4) Coordinate Contractor value engineering request to shallow up dual trench alignment from approximately Ste 71+18 to 85+89 for time savings and impact mitigation 5) Additional meetings in support of schedule recovery efforts Total Amendment No. 3 $432,753 As of late March 2015, completed work includes 351 feet of microtunneling, 5,050 feet of cured-in-place, 163 feet of jack and bore piping, 1,766 feet of open trench work with a single pipe, and 1,795 feet of open trench work with dual pipes. It is anticipated that by Memorial Day 2015, the Orange County Sanitation District (Sanitation District) will complete the major elements planned for phase one including microtunneling for the new South Force Main, the new open trench piping, the cured-in-place piping for the south force main, and have traffic constraints removed from Pacific Coast Highway. CEQA The Newport Beach Force Main System including Newport Force Main Rehabilitation, Project No. 5-60, is within the scope of the Program Environmental Impact Report (PEIR) for the Collection System Improvement Plan, SCH# 2006101018, certified in June 2007. Pursuant to CEQA Guidelines section 15168(c)(4), the Sanitation District prepared an addendum to the PEIR to cover sections that needed further analysis; air quality and greenhouse gas emissions which was not included in the original PEIR. The Board adopted Addendum No. 2 to the Collections PEIR on March 26, 2014. After Page 3 of 4 reviewing the facts and analyzing the circumstances, staff has determined that these issue areas are not substantial changes since the certification of the Final PEIR for the Collection System Improvement Plan. BUDGET/PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (FY2014-15 & 2015-16, Section 8, Page 36) and this action increases the budget. Date of ADDroval Contract Amount Continaencv Kiewit 03/26/15 $36,715,000 $3,304,350 (9%) 05/27/15 $36,715,000 $7,343,000 (20%) Brown&Caldwell 04/23/14 $ 2,231,925 $ 178,554 (8%) 01/28/15(Amend 1 —Board) $ 2,483,535 $ 178,554 (7.2%) 05/27/15(Amend 3—Board) $ 3,071,639 $ 23,289 (0.8%) ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Professional Consultant Services Agreement Amendment No. 3 CD:dm:gc Page 4 of 4 AMENDMENT NO. 3 TO AGREEMENT THIS AMENDMENT NO. 3 TO AGREEMENT, is made and entered into to be effective the 27th day May, 2015, by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and Brown & Caldwell, of Los Angeles, for purposes of this Agreement hereinafter referred to as "CONSULTANT'. WITNESSETH: WHEREAS, the SANITATION DISTRICT and CONSULTANT have previously executed an Agreement dated April 23, 2014, together with Amendment No. 1 dated January 28, 2015, and Amendment No. 2 dated March 17, 2015, for professional consulting services for Project 5-60, Newport Force Main Rehabilitation; and, WHEREAS, the SANITATION DISTRICT and CONSULTANT has determined that additional engineering services of this project is to rehabilitate the Newport Force Main system located on Pacific Coast Highway in Newport Beach between the Bitter Point Pump Station and Dover Drive. Brown & Caldwell furnished engineering services for the design of Project No. 5-60, and is currently providing engineering support services during construction. Since construction began, Brown & Caldwell and its subconsultants have provided support for the project including review of submittals, design of the fix for the break in its West Lido Force Main, field support of well installations and dewatering, traffic control plans, geotechnical assessments in support of the microtunneling operation, and an engineering services for the addition of a pump at Bay Bridge Pump Station and piping stabilization at the Bay Bridge Valve Vault. Due to the location of the work, limits related to traffic, and the unknown factors in 1 underground rehabilitation projects, Brown & Caldwell's effort has been greater than expected. Unplanned work includes significant revisions to traffic controls plans, review of a change of plans to open cut through Dover to reduce community impacts, additional geotechnical support when the microtunneling operation encountered obstacles, observation of well installations to reduce the number of wells proposed by the Contractor, design of structural bracing for recent field modifications at the Bay Bridge Valve Vault, and structural engineering for modifications to locate a new pump at Bay Bridge Pump Station. This Amendment will authorize Brown & Caldwell to provide support during the remainder of phase one and through phase two of this project. WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these additional requirements based on its demonstrated competence and has agreed to provide the necessary engineering services, and has been selected in accordance with the SANITATION DISTRICT selection policy regarding professional consultant services; and, WHEREAS, the SANITATION DISTRICT acting through its Director of Engineering has negotiated with CONSULTANT, and has certified the final negotiated fee for said services as reasonable, and, WHEREAS, the General Manager has accepted the recommendation of the Director of Engineering, pursuant to the current Ordinance, has approved this Amendment No. 3 between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Amendment No. 3, it is mutually agreed as follows: 1. CONSULTANT agrees to provide engineering services as outlined in 2 Consultant's letter dated April 2, 2015, designated as Exhibit "A", attached hereto and by this reference made a part of this Amendment No. 3 to Agreement. 2. Article 2 of that certain Agreement dated April 23, 2014, between the SANITATION DISTRICT and CONSULTANT is hereby amended to increase the total compensation by $432,743 from $2,638,886 to an amount not to exceed $3,071,639, all in accordance with the same terms and conditions as otherwise specified in Article 3 and the other provisions of said Agreement. 3. The additional compensation authorized hereby and sums paid by the SANITATION DISTRICT to CONSULTANT pursuant hereto shall be based upon and allocated as follows: Change Amended Aore Current Contract Amount per Amendment ement (includes Amendments)* No. 3 Consultant- B&C Burdened labograwlabor♦(nnge@38.71%) $ 739,155 $ 52,144 $ 791,299 Overhead at 112.32% $ 830,220 $ 58,568 $ 888,788 Fixed Profit at 7.425% $ 116,526 $ 8,220 $ 124,746 Direct Cost, NTE $ 13,485 $ 1,000 $ 14,485 SUBTOTAL $ 1,699,386 $ 119,932 $ 1,819,318 Subconsultant A- Hatch Mott McDonald Burdened labor(rawlaborfnnge@W.1g%) $ 89,826 $ 15,358 $ 105,184 Overhead at 155% $ 139,230 $ 23,805 $ 163,035 Fixed Profit at 9.9595% $ 22,813 $ 3,900 $ 26,713 Direct Cost, NTE $ 65,300 $ - $ 65,300 SUBTOTAL $ 317,169 $ 43,063 $ 360,232 Subconsultant B -Traffic Control Eng. Burdened labograwlaborvfnnge@45%) $ 59,746 $ 50,123 $ 109,869 Overhead at 153% $ 91,411 $ 76,688 $ 168,099 Fixed Profit at 10% $ 15,115 $ 12,681 $ 27,796 Direct Cost, NTE $ 1,250 $ - $ 1,250 SUBTOTAL $ 167,522 $ 139,492 $ 307,014 Subconsultant C- Shannon &Wilson Burdened labor(rawlab r fringe@821%) $ 100,330 $ 43,002 $ 143,332 Overhead at 107.34% $ 107,694 $ 46,158 $ 153,852 Fixed Profit at 10% $ 20,802 $ 8,916 $ 29,718 3 Direct Cost, NTE $ 22,810 $ 15,764 $ 38,574 SUBTOTAL $ 251,636 $ 113,840 $ 365,476 Subconsultant C- Kleinfelder Burdened labor(rawiawwrrmge@60.34%) $ 54,225 $ 8,692 $ 62,917 Overhead at 71.80% $ 38,933 $ 6,241 $ 45,174 Fixed Profit at 10% $ 9,317 $ 1,493 $ 10,810 Direct Cost, NTE $ 16,183 $ - $ 16,183 SUBTOTAL $ 118,658 $ 16,426 $ 135,084 Subconsultant under 100K fees NTE Sub D - Jason Consultants $ 47,200 $ - $ 47,200 Sub F - KDMM $ 16,725 $ $ 16,725 Sub G - Cardno $ 15,590 $ $ 15,590 Sub H - Scheidegger& Assoc. $ 5,000 $ - $ 5,000 SUBTOTAL $ 84,515 $ $ 84,515 Total Not To Exceed $ 2,638,886 $ 432,753 $ 3,071,639 4. The SANITATION DISTRICT agrees to pay CONSULTANT on a monthly basis pursuant to invoices submitted to the SANITATION DISTRICT from CONSULTANT and as approved by the SANITATION DISTRICT's Director of Engineering. 5. This modifying Amendment is supplemental to the Agreement dated April 23, 2014, Amendment No. 1 dated January 28, 2015, and Amendment No. 2 dated March 17, 2015, and is by reference made a part of said Agreement. All of the terms, conditions, and provisions thereof, unless specifically modified herein, shall continue in full force and effect. 6. In the event of any conflict or inconsistency between the provisions of this Amendment and any of the provisions of the original Agreement shall in all respects govern and control. 4 IN WITNESS WHEREOF, this Amendment No. 3 to Agreement has been executed in the name of the SANITATION DISTRICT by its officers thereunto duly authorized and executed by CONSULTANT as of the day and year first above written. ORANGE COUNTY SANITATION DISTRICT By Tom Beamish Date Chairman of the Board By Kelly A. Lore Date Clerk of the Board BROWN & CALDWELL By Date By Date ORANGE COUNTY SANITATION DISTRICT By Marc Dubois Date Contracts/Purchasing Manager CD:dm 5 Professional Design Services Agreement Status Report Newport Force Main Rehabilitation Project Project No. 5-60 Consultant: Brown & Caldwell Requested Action: PCSA Approve Amendment No. 3 Date Amendment Approval Description Cost Accumulated Costs 4/23/14 Original Ops/Board Original PCSA 2,231,925 2,231,925 PCSA Additional engineering services will to design the 251,610 2,483,535 pipe repair/rehabilitation, hydraulic modeling to Amendment verify capacity with the proposed repair, oversee en 1/28/15 en 1 Ops/Board sub-contractors for land surveying, geotechnical assessment, traffic control design, and utility location for rehabilitation of both the East and West Lido FMs. Additional engineering services will collaboratively determine site-specific dewatering approaches and designs for each cured-in-place pipe (CIPP) and tunneling pit Amendment excavation (28 CIPP pits, and 4 tunneling pits). 3/17/15 No 2 GM It will also oversee the installation of dewatering 155,351 2,638,886 wells and sumps and observe and make field determinations on construction dewatering system installation, development, and operation, including excavation sump pumping. 4/6/15 Reallocation DOE Accommodate adjustments made to the 0 2,638,886 Consultant and subconultant fees. 5/27/15 Amendment Ops/Board Provide support during the remainder of phase 432,753 3,071,639 Pendin No. 3 one and through phase two of this project. Exhibit"A" 18200 Von Kerman Avenue,Suite 400 Irvine,CA 92612 T:714-689-4800 F:714-734-0940 April 2, 2015 Ms.Carla Dillon, PE Brown AND Orange County Sanitation District Caldwell 10844 Ellis Avenue Fountain Valley, California 92708 Subject: Newport Force Main Rehabilitation, Project No. 5-60 Amendment No.3 Dear Ms. Dillon: Brown and Caldwell (BC) is pleased to submit this letter fee proposal to provide additional Professional Consulting Services for the Orange County Sanitation District's (OCSD's)5-60 Project. This fee proposal includes additional construction support services required in support of ongoing changes requested by the City of Newport Beach and additional efforts to support ongoing microtunnel obstruction removal activities since the end of February 2015. We have reviewed our efforts(along with and our subconsultants efforts)to date in conjunction with the construction schedule and the work completed by the contractor. The basis for additional efforts in Amendment No. 3 include the following: Brown and Caldwell: Provide continued professional construction support services for the remainder of Phases 1 and Phase 2 construction seasons. The scope of work includes the following: • Due to greater than expected efforts in attendance of meetings during Phase 1, additional efforts for anticipated Phase 2 meetings. • Due to greater than expected as needed support during Phase 1 construction season including support during microtunnel obstruction removal and design changes and redesigns regeusted by the City of Newport Beach and Contractor for schedule recovery. Hatch Mott MacDonald: Provide support during tunneling activities. This amendment replaces funds reallocated in Reallocation Request No. 1. Traffic Control Englneering: Provide ongoing revisions to existing traffic control plans and preparation of new traffic control plans in support of City of Newport Beach requests for the remainder of the project. Attend coordination meetings with the City of Newport Beach and Caltrans, as required. Shannon&Wllson: Provide continued construction dewatering support services for Phase 2 construction season. The scope of work includes the following: • Work directly with the Contractor and OCSD/BC to collaboratively determine site- specific dewatering approaches and designs for remaining cured-in-place pipe (CIPP) pit and abandonment excavations. • Oversee the installation of dewatering wells and sumps. • Observe and make field recommendations on construction dewatering system installation, development,and operation, including excavation sump pumping. 5c0 pdsa tee letter emend3.doex Ms.Carla Dillon Orange County Sanitation District April 2, 2015 Page 2 Klelnfelder. Provide additional geotechnical support services for the remainder of Phase 1 and Phase 2 construction seasons. The scope of work includes the following: • Provide oversight, performance, and data interpretation of multichannel analysis of surface waves(MASW)survey for the Newport tunnel drive. • Provide on-site inspection and geotechnical monitoring during excavation to remove subsurface piles encountered under the Newport Boulevard Bridge. • Provide weekend and night shift inspector gap coverage for OCSD inspectors, as required. The proposed labor hour matrix, cost matrix, and Amendment No. 3 fee proposal forms are included as Exhibit A. A summary fee proposal table for the project is provided as Exhibit B. The breakdown of the total fees for this amendment are as follows: Amendment No.3 Breakdown Change perAmenniend No 3 Brown and Caldwell $119,932 Hatch Mott MacDonald E43,063 Traffic Control Engineering $139,492 Shannon&Wilmn $113,940 Klelnfelder $16,426 Total $432,753 It is our pleasure to continue providing support to OCSD on this important project. If you have any questions or comments, please feel free to contact me at(213)271-2239. Very truly yours, Brown A,(," �/a�ndd Caldwell A, v`*yK Melissa Ingalsbe, PE, PMP Project Manager Ml:re Attachments(1) 5co pdsa tee leoe�emenda.doc Newport Force Main Rehabilitation,Project No.5-60 Amendment No.3 Exhibit A: Labor Hour/Cost Matrix and Fee Proposal Forms Brown and Caldwell Hatch Mott MacDonald Traffic Control Engineering Shannon & Wilson Kleinfelder Brown>�=Caldwell Brown and Caldwell-Contract 5-60 Fee Proposal Form Amendment No.3 April 2,2015 Consultant Name: Brown and Caldwell Raw Labor $ 37,592 Fringe Rate 38.71% (%X Raw Labor) $ 14,552 Burdened Labor (Raw Labor+Fringe) $ 52,144 Overhead Rate 112.32% (%X Burden Labor) $ 58,568 Subtotal (Burdened Labor+ Overhead) $ 110,712 Profit at 7,425% (Overhead and Burdened Labor) $ 8,220 Total Direct Costs, not to exceed $ 1,000 TOTAL-Brown and Caldwell Consulting Services,not to exceed: $ 119,932 Brown and Caldwell-Contract 5-60 Labor Hour Matrix Argentines No.3 APr92,gals 8 n : g_ wegi ie is I S. m`aas BC Total Principal Prged Engineer Pnntipal Senior Labol Task Description in Chege Manager APecord Engineer Engineer pours Phase d-Construction and Installation Services Task 0.2-Workshops and Meetings 16 16 90 90 60 V2 Other Meetings 16 16 90 90 60 V2 Additional Meetings for Phase 2 16 16 90 90 60 272 Task 46 Contract Mods,Oacign Changes,Coe 0 0 eD 1T0 15a "a AaNeard Support 0 0 60 120 1a0 no Additional M-Needed Support for Phase 2 60 120 1W 330 Phase 4 SUMctals 16 16 IN 210 210 002 Brawn and Caldwell-Contract 5-0 Cast Matrix Amendment No.3 April 2,2015 OF 0V V Total BC Principal In Pooled Engineerof Principal Senior Labor Total BC Task Item Charge Manager Record Engineer Engineer Hours Labor Cost Burdened Rate(Raw Rate+Benefits),$Ilrr 12964 99.91 120.93 84.72 59.71 5-60 Newport FM Rehabilitation Project Phase 2-Preliminary Design Task 4.2-Workshops and Meetings It 2,074 $ 1,599 $ 10,883 $ 7,625 $ 3,583 272 $ 25,764 Other Meetings $ 2,074 $ 1,599 $ 10,883 $ 7,625 $ 3,583 272 $ 25,764 Additional Meetings for Phase 2 $ 2,074 $ 1,599 $ 10,883 $ 7,625 $ 3,583 272 $ 25,764 Task 4.6-Contract Mods,Design Changes,Cos $ - $ - $ 7,256 $ 10,167 $ 8,957 330 $ 26,380 As-Needed Support $ - $ - $ 7,256 $ 10,167 $ 8,957 330 $ 26,380 Additional AsNeeded Support for Phase 2 $ - $ - $ 7,256 $ 10,167 $ 8,957 330 $ 26,380 E Total Labor Hours for ALL Phases 5-60 is 16 16 150 210 210 602 Total Burdened Labor Cost 5-60= $ 2,074 $ 1,599 $ 18,139 $ 17,792 $ 12,540 1 1 $ 52,144 Overhead(as a percent of Total Burdened Labor Cost)l 112.32% $ 58,568 Profit(as a percent of Total Burdened Labor Cost+Overhead) 7.425% $ 8,220 Total Labor Cost $ 118,932 Item Total ODC 2 3 4 5 Cost Cost Travel Charges $ 1,000 E7,000 $ 1,000 Subtotal ODCs= is - I $ - I $ 1,000 $ $ 1,000 Total Cost(Amendment Hatch Mott MacDonald-Contract 5-60 Fee Proposal Form Amendment No.3 April 2,2015 Subconsultant"A"Name: Hatch Matt MacDonald Raw Labor $ 10,226 Fringe Rate 50.19% (%X Raw Labor) $ 5,132 Burdened Labor (Flaw Labor+Fringe) $ 15,358 Overhead Rate 155% (%X Burden Labor) $ 23,805 Subtotal (Burdened Labor+ Overhead) $ 39,163 Profit at 9.9595% (Overhead and Burdened Labor) $ 3,900 Total Direct Costs,not to exceed $ TOTAL-Subconsultant Consulting Services, not to exceed: $ 43,063 Page 1 of 1 Hatch Mott MacDonald-Contract 5-60 Labor Hour Matrix Amendment No.3 April 2,2015 Hatch Mon MacDonald Project Total Sub Task Item Manager Sr. Engineer Engineer Jr Engineer Support Support Labor Hours 540 Newport FM Rehabilitation Project Phase J-Construction Support Services 46 BQ Construction Support Services-Phase 2 as 80 53 1A Total Labor Hours far 560= 6C 80 53 0 0 0 1Tl Page 1 of 1 Hatch Mott MacDonald-Contract 5-60 Cost Matrix Amendment No.3 April 2,2015 Hatch MOD MacDonald Proacl Manager Task lbm 5[ Engineer EngineerW Engineer 3uppml Srµvl Tole Tole blsn e Burdened RaN Raw Rah rBaneflM,EMr. $1a1s 889.at $67.17 $ao.n stre.¢B Et6e.]9 L H-aMHours LaborCaCost d t D Nwer FMRehab lHNfl.n ro.PPnees a-Ca 56 a E i loate Consmxo W Bw I s 6.L] E a" 3 axes I S E $ P E tS]59 Total Labor Hours for ALL Phases 5ba- d4 M 53 0 0 D t]] Twal B,Memd Labor CostT% f= E 6,34] $ 5,4]9 f 9,539 f - E - $ E 15,35E 135.00% E 2.t.805 9.9595% $ $,900 E U.093 tern PHASE 4 3 4 Cost Total CDC Cost $0 $ $0 S Subtotal-ODCs= $ - $ $ $ $ Subtotal Cost for 54i0= $ 43,063 Traffic Control Engineering-Contract 5-60 Fee Proposal Form Amendment No.3 April 2,2015 Subconsultant'B"Name: Traffic Control En ineerin Raw Labor $ 34,568 Fringe Rate 45% (%X Raw Labor) $ 15,555 Burdened Labor (Flaw Labor+Fringe) $ 50,123 Overhead Rate 153% (%X Burden Labor) $ 76,688 Subtotal (Burdened Labor+ Overhead) $ 126,811 Profit at 10% (Overhead and Burdened Labor) $ 12,681 Total Direct Costs,not to exceed $ TOTAL Subconsultant Consulting Services, not to exceed: $ 139,492 Page 1 of 1 Traffic Control Engineering-Contract 5-60 Labor Hour Matrix Amendment No. 3 April 2, 2015 Traffic Control Engineering Total Sub Task Item David Kuan I Kay Hsu Frank Lu Labor Hours 5-60 Newport FM Rehabilitation Project Phase 4-Construction Support Services 600 Construction Support Services-Phase 1 1 240 1740 80 1 360 Constmction Support Services-Phase 2 1 360 35 80 1 475 Total Labor Hours for 5-60= 600 75 160 835 Page 1 of 1 Traffic Control Engineering-Contract 5-60 Cost Matrix Amendment No.3 April 2,2015 Traffic Control Engineering Task Item David Kuan Kay Hsu Frank Lu Total Sub Total Sub Burdened Burdened Rate(Raw Rate+Benefits),$/hr: $70.07 $44.92 $29.46 Labor Hours Labor Cost 5.60 Newport FM Rehabilitation Project Phase 4-Construction support Services i $ 42,0,H $ 3,369 $ 4,714 835 1 $ 50,123 Construction Support Services-Phasel 1 $ 16,816 1 $ 1,797 $ 2,357 1 360 1 $ 20,970 Construction Support Services-Phase 2 1 S 251 $ 1,5721 $ 2,357 1 475 1 $ 29,153 Total Labor Hours for ALL Phases S-60= 600 75 160 835 Total Burdened Labor cost 5.60,S= $ 42,041 $ 3,359 $ 4,714 1 $ 50,123 Overhead(as a percent of Total Burdened Labor Cost) 153.00% $ 76,688 Profit(as a percent of Total Burdened Labor Cost+Overhead) 10.0001 $ 12,681 Total Labor Cost $ 139,492 Item PHASE 4 Cast Total CDC Cost $0 $ $0 $ Subtotal-ODCs= $ - $ Subtotal Cost for 5-60 = $ 139,492 Shannon and Wilson-Contract 5-60 Fee Proposal Form Amendment No.3 April 2,2015 Subconsultant"C"Name: Shannon&Wilson Raw Labor $ 23,614 Fringe Rate 82.10% (%X Raw Labor) $ 19,388 Burdened Labor (Raw Labor+Fringe) $ 43,002 Overhead Rate 107.34 (%X Burden Labor) $ 46,158 Subtotal (Burdened Labor+ Overhead) $ 89,160 Profit at 10% (Overhead and Burdened Labor) $ 8,916 Total Direct Costs,not to exceed $ 15,764 TOTAL-Subconsultant Consulting Services, not to exceed: $ 113,840 Page 1 of 1 Shannon and Wilson -Contract 5-60 Labor Hour Matrix Amendment No. 3 April 2, 2015 Shannon&Wilson Dean Erik Stephen Total Sub Task Item Fmncuch Blumhagen Thomas Labor Hours 5-60 Newport FM Rehabilitation Project Phase 4-Construction Support Services 220 350 1 30 600 Construction Phase 2 -Dewatering Oversight and Support 16 weeks 220 350 30 600 Total Labor Hours for 5.60= 220 350 30 600 Page 1 of 1 Shannon and Wilson-Contract 5-60 Cost Matrix Amendment No.3 April 2,2015 Shannon 8 Wilson Total Sub Total Sub Burdened Task Item Dean Francuch Enk Blumhagen Stephen Thomas labor Hours Labor Cost Burdened Rate(Raw Rate+Benefits),Sint: $88.63 $5984 1 $85.32 5.60 Newport FM Rehabilitation Project Phase 4-Construction Support Services $ 19.499 $ 20,944 $ 2,559 600 E Construction Phase 2 -Dewalenn Oversight and Support 16 weeks) $ 19,499 $ 20,944 $ 2,559 Soo $ 43,002 Total Labor Hours for ALL Phases 5-00• 220 350 30 600 Total Burden!Labor Cost s_ $ $ 19,499 1 $ 20,9a4 1 $ 2,559 1 $ 43,002 Overhead(as a percent of Total Burdened Labor Cost) 107.34% $ 46,159 Profit(as a percent of Total Burdened Labor Cost+Overhead) 10.0000% $ 8,916 Total Labor Cost $ 98,076 Item PHASE 4 Cost Total ODC Cost Airfare(E.Blumhagen)[est.6 trips] $4,200 $ 4,200 Car Rental(E.Blumhagen) $2,400 $ 2,400 Mileage(D.Francuch) $2,880 $ 2,880 Lodging(E.Blumhagen) $3,600 $ 3,600 Meals $1,080 $ 11080 Other $1,604 $ 1,604 Subtotal-ODCs= $ 15,764 $ - $ 15,764 Subtotal Cost for 5.60 = $ 113,840 Kleinfelder-Contract 5-60 Fee Proposal Form Amendment No.3 April 2,2015 Subwnsultant"D"Name: Kleinfelder Raw Labor $ 5,421 Fringe Rate 60.34% (%X Raw Labor) $ 3,271 Burdened Labor (Raw Labor+Fringe) $ 8,692 Overhead Rate 71.80% (%X Burden Labor) $ 6,241 Subtotal (Burdened Labor+ Overhead) $ 14,933 Profit at 10% (Overhead and Burdened Labor) $ 1,493 Total Direct Costs, not to exceed $ TOTAL-Subconsultant Consulting Services, not to exceed: $ 16,426 Page 1 of 1 Kleinfelder-Contract 5-60 Labor Hour Matrix Amendment No.3 April 2,2015 Kleinfelder Senior Principal Pn,Pal Pealed CARD Sub Task Item Professional Professional Professional ProfStessiaff onal CZI r Administrative LaborTotal Hours 5.60 Newport FM Rehabilitation Project Phase 4-Conatructlon Support Services 40 40 60 0 0 12 152 Construction Su od Services-Phase 2 AO 40 60 12 152 Total Labor Hours for S6o= 40 <0 60 0 0 14 t53 Page 1 of 1 Kleinfelder-Contract 5-60 Cost Matrix Amendment No.3 April 2,2015 Kleireeltler Senior Principal Rlncipal PMs. SraM TOW Sub Tdal&bfLrtlaretl Teak Xem P.asl PMueianal Pro leaaional Frohnsorel CADD Operant MMnignal LeWrHwn Lab.,Wei Burdened Bab Maw Ra]e a BemAid,Mr. lxdbS Was Ea].]9 $%18 Ss0.1B f]7.01 SBo Nes a A FM RebabllKHlen Pro t PbPass.a-ConsMYtion su orI SMNWa $ LMa .%e i Construcllm 5u...n'rvices-Pr—s S 4203 1 S 2.563 13 ]..,1 $ S S .1 Iso Is IM, Total Labor Hour¢far ALLPMu¢Si0= 40 MI 60 B 0 12 152 Total BUMeneE Labar CaH sdO.b= $ 3.202 $ 2�562 $ 2,6D] $ - $ -le 524 I E E26B2 Overhead(as a percent wTonal Burdened labor Oo n TiSo% E &2N Prom(as a ement of Tonal Burdened Labor Cost•Overhead) t0.0000% E tAe3 Total LaWr Coll E 16A26 PECE.$11abor Hour $ 108 tem PHASE 1 2 3 4 6 Coat Total ODC Coat S E E Subtotal-OD6a- $ S E E E Subtotal Cost for 5-80• $ 16,426 Newport Force Main Rehabilitation,Project No.5-60 Amendment No.3 Exhibit B: Contract Summary Fee Proposal Form 560 ptlss fee IeMr_amend3 doex Fee Proposal Form OCSD S60 PCSA Amendment No.3 Brown and Calawen April 2,2015 andlandiflofflaraArmart Chang' par emandamMadan and Caldwell) Nam LaI, S 47"S $ 5415C0 E 3 S 37,592 S SiOp]0 Mnge new 3B]1% j 185,M 3 21,112 E 3 j 14,552 3 22 AS nmtlenM Ld.Vamamndm j 663,503 3 75,92 S f $ 52,1M 3 791929 OwaRmdal112.3le j 745,247 3 84,973 3 f f 581568 3 888,7BB S,own deardened Lmor.UrcTeel f 1A08,I50 S 1601625 $ It 110,712 E 1,680,087 ned.1a 7.QR% f 104,M f 111926 S It f 8,220 f 124,70 DIM CBsq mE f I21445 f 1,090 S f f 1,000 s 14ASS BubW1aL BCConsumagservleas'M f 1,525,B35 E 173,551 $ f f 118,932 $ 1,319,318 SrbcansuxamA-xYaM1Mgtl cBOnaq Raw labor f i0,W4 5 - E - 3 (20,2xIS f lax. 5 70,014 Fm&Rule 50.19% f 35 tan 5 - E - 3 IS.131) f RJAS 5 Set. nuNened laba,(Realabor+Nap) f 105,1M 5 - S - 3 P5,358) f 15,359 5 1.5,1. Pureed. % f ]63,N5 5 - S - 3 PASOR) f 23,805 5 ]83,N5 6ubmad(a mmed L.wr+ bond S 268$19 5 - S - 3 pilled) f 39,1. 5 28B¢19 Rand 1.or 9.9 .Raedsad and nuMenM Ubu0 f 26,I13 E S f 13,90% f 3,9W S 26,713 p rect h,NR f 65M E S f E SAM TOTAL-Submnsritent ',NIE: f MaM $ f f (43,063) f 43,053 $ 360,232 Subamsuxml[B-Treble Garber EaMering Rawlabor f SWA47 $ 4,957 S f f 34.5% $ 75,]]1 Far,naIR45% f 16,311 $ 2,231 E S f 15,555 $ 94,017 BUYxed lannRI-I.S.-Fdnp) f FAM $ 7,188 E S f 501W $ MASS awarded at 153% f BOA14 $ 10,997 E f f 76ARS $ 168,009 Smeralfueered Lal-OrcYeand f 13219. $ 18,185 E f f 126,811 $ 277,969 Feel Pant 91Mmanned and Brennen UM f 13.297 E 'Ala E f f 12,681 E 27,796 Ne mambo R f 1AW $ - E - $ S 5 tAW TOTAL Subednsultanl"B',NIE: $ 147,519 E 201003 S S $ 139A92 E 307,014 SubomsuflantC 9rannonaWIson R-Leber f 21,867 S E Wa29 S f 23,614 S 78,710 nand aak 82.10% f 17,953 E S 27,281 S f 19,38, E 84,622 Rename.1 lxaw law a Fralll f 39,820 5 - E RA . $ f 43,W2 5 143332 a flaard al10i 34% j 42,743 3 3 64,961 3 $ 46,158 3 iss= narrow(ad.."bar a Ow.wad) f 821563 S E 1251"1 S f 89,1W S 297,184 1.Pmin at l0%pPnbmd end Burdened lalpO f 8156 S E 12546 S f 81916 S 29,718 Dl.m.,ME f SAN E S 17,344 f f 15,764 E 38,574 MTAL-SubonnmlYM"C",NTB f 96,285 E E 155,351 f f 113,840 E 365,478 SubemsuNlrt 0-81YnMder amain $ 18,D26 3 GASS 3 3 8,948 $ 5,411 3 M?MI Mnge Red W.34% f 10,8]] S 4,130 $ f 5,399 f 3,271 $ 23,677 BuemM labngAaw Labe♦Mnge) f 28,903 $ 10,975 E f 14,347 f 8.02 S 81,917 am sedYn80x S 20,1. 5 land E - $ 20,301 f fi,Sal 5 4l174 9ubNallBunamdbbera OradlxY j 49,655 3 16AS E 3 24,648 $ 14,933 3 108,01 FM Plant at 16%pamrxd end Burdened Ural j 4,%6 3 1,986 E 3 2,465 $ 1.493 3 leave dreRCmdral. f 03 S E f 15,950 f S 11183 TOTAL-Submnsultda W,NIE: f 54,854 $ 20,741 3 f WAS f 16,628 $ 135,084 Subum $ $ Sub E E - m J Deer f 1008 kes NIE - Caunab n f 4TADD 5 - E - 3 S 5 4TAW Sb Calm 3 l6,]25 3 3 3 l6,725 Saba-0Ia Nno 3 15,590 3 f 3 15,590 srbx-xnne.ggnaAamlYm $ aW s s, s f $ $ s,aW MTA 9uacnsmteMa E x,Norte Swede: f 41,201 E ii,315 f f f M s 81.515 GRAND ALMr Design Seea e ,nebumd f 2,231,825 E 251,8f0 f 155,351 f f 432j53 E 3,W1,839 Page 1 OT I OPERATIONS COMMITTEE NeedagDate TOBd.O(Dlr. 0 16 O6/27/15 Item AGENDA REPORT N Number Item umber 8 Nu Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: OXYGEN PLANT DEMOLITION AT PLANT NO. 2, PROJECT NO. SP-129 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $328,078 (27%) to the construction contract with W.M. Lyles for Oxygen Plant Demolition at Plant No. 2, Project No. SP-129, for a total contingency of$497,783 (41%). SUMMARY Oxygen Plant Demolition at Plant No. 2, Project No. SP-129, will demolish abandoned cryogenic oxygen generation equipment that was originally constructed in 1983. The oxygen generation facilities had been used to supply high purity oxygen to the Activated Sludge Plant until late 2012. The Orange County Sanitation District (OCSD)then began purchasing liquid oxygen to avoid the higher cost of on-site generation. On September 23, 2014, bids for the demolition work were opened. W.M. Lyles (WML) was the lowest responsive and responsible bidder among four bidders and was awarded the construction contract for $1,214,105 on November 19, 2014. The construction notice to proceed has not yet been issued. WML's bid price was based on a particular subcontractor, Ranch Cryogenics, Inc. (RCI), providing approximately $500,000 worth of dismantling and oxygen delivery system modification services in return for possession of the oxygen generation equipment and no monetary compensation. RCI specializes in oxygen generation facilities and first reached out to OCSD during the bid period with an offer to buy the oxygen plant. RCI had a committed customer who had a larger project that had a particular use for the equipment, even though the equipment is old and obsolete. RCI's customer's project was unique in its nature and would not be expected to be repeated elsewhere. OCSD saw potential in RCI's proposal, but preferred that RCI work directly with contractors. To do this, OCSD issued a bid addendum to make the oxygen plant equipment the property of the contractor and suggested that RCI contact bidders on the plan holders list. RCI reached out to bidders late in the bid period with their proposal to dismantle and take possession of the oxygen generation equipment at no cost. Page 1 d 3 Shortly after award of the construction contract, however, RCI's customer cancelled their project due to a sudden change in energy markets. Following that development, WML and RCI unsuccessfully attempted to identify other potential buyers inside and outside the US. Based on this change in circumstances, WML requested the construction contract be cancelled for convenience at no cost to either party. The circumstances of the cancellation of RCI's customer's project could not have been foreseen by any of the parties. WML's bid of $570,406 lower than the next highest bid which also used RCI as a subcontractor. At the April 1, 2015 Operations Committee Meeting, the committee requested staff to negotiate a potential resolution with WML. Based on the direction offered by the committee, staff developed four alternatives for resolving this issue. After consideration of potential outcomes, staff believes that issuing a change order in the amount of $329,100 to the contractor will provide the overall best combination of schedule, cost, and allocated risk to completing the project work. PRIOR COMMITTEE/BOARD ACTIONS April, 2015—This same issue was discussed, but no action was taken. November, 2014 —Awarded a construction contract to W.M. Lyles Co. for Oxygen Plant Demolition at Plant No. 2, Project No. SP-129, for a total amount not to exceed $1,214,105. ADDITIONAL INFORMATION Based on the direction offered to Staff at the April 1, 2015 Operations Committee meeting, the following Alternatives to completing the work were considered. Below is a discussion on each of these alternatives. Alternative 1 — Issue Notice to Proceed with No Price Adjustment In this alternative, OCSD would issue a Notice to Proceed without any adjustment in price for the changed circumstance. This option would have the lowest immediate costs to OCSD for the project. WML would likely perform a portion of the work at a significant loss. WML has indicated that they may oppose this alternative and OCSD may incur additional administrative and legal costs in the event that WML files a claim seeking additional compensation based on the changed circumstances. (While the courts will allow price adjustments due to unforeseen circumstances in construction projects, this situation is unusual and is not similar to cases where adjustments are normally allowed. Such cases usually involve excavation projects where soil conditions turn out to be different than expected, or circumstances unknown to the parties prior to construction planning that require changes to the work after it has commenced. In this case, WML assumes the risk of RCI not complying with its portion of the work, which is not part of the project's contract documents). Page 2 d 3 Recommended Alternative — Negotiate an Adjustment for Changed Circumstances In this alternative, OCSD would approve a change order of not more than $329,100, which represents the direct cost, without overhead or profit, which WML will incur because RCI is no longer able to reuse the cryogenic equipment. This amount would cover only WML's direct expenses without overhead or profit, and would stipulate that OCSD would receive the savings realized in salvage value or in the unlikely event that a buyer is found to reuse the equipment prior to disposal. This alternative would require that the board increase the construction contract contingency by $328,078 (27%) to a total contingency of$497,783 (41%). With this change order, the construction cost would be no more than $1,543,205, which is still $241,306 less than the second low bid, which also used RCI. This alternative also would be the quickest way to complete the work and would require the least amount of OCSD staff time. In addition, OCSD's reputation as fair and reasonable with contractors would be maintained. Alternative 2—Authorize Staff to Negotiate Compensation for Bid Phase Costs In this alternative, OCSD staff would negotiate an agreement to cancel the construction contract in return for WML compensating OCSD for its costs incurred during the bid period. OCSD bid phase costs, which include staff and consultant costs, were approximately $30,000. WML has indicated a willingness to negotiate such an agreement. This alternative would require the project to be rebid, and the new bid price would likely be higher than the Recommended Alternative. CEQA This project was categorically exempt from CEQA based on CEQA Guidelines, Class 2. A notice of Exemption was filed on February 9, 2010. BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT N/A JM:dm:gc Page 3 d 3 OPERATIONS COMMITTEE Meeting Date TOBI0/1Dir. 05/06/15 05/2715 AGENDA REPORT Item1umber Item Number 0 1 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: HEADWORKS REHABILITATION AT PLANT 1, PROJECT NO. P1-105 GENERAL MANAGER'S RECOMMENDATION A. Approve an increase in the project budget for Headworks Rehabilitation at Plant 1, Project No. P1-105 from $76,476,000 to $235,273,000, and an increase in the construction budget from $44,181,000 to $155,000,000; B. Approve a Professional Design Services Agreement with Carollo Engineers, Inc. to provide engineering design services for Project No. P1-105, for an amount not to exceed $17,528,957; C. Approve a contingency of$1,752,896 (10%); and D. Cancel Project No. 131-120, Headworks Expansion, as its scope of work is included in Project No. P1-105. SUMMARY Previously, the planned approach for Plant No. 1 Headworks Facilities was to start Project No. P1-105 in 2015 to perform equipment and material rehabilitation, followed by the much larger Project No. P1-120 in 2024 to continue rehabilitation, upgrade facilities for improved levels of service, increase capacity, and demolish unused facilities, such as the old Headworks No. 1. Based on the conclusions of a recent planning study, the approach was revised to move the upgrades and demolition forward into P1-105 and cancel P1-120. The only remaining work in P1-120 would have been the capacity increase, which is not needed because flows are not increasing, as previously forecasted. This revised approach requires a major increase in the estimated P1-105 construction cost, along with a corresponding increase in the total project cost. This increase is offset by cancelling Project No. P1-120, which is budgeted for$222,804,000. The scope of work for Project No. P1-105 is a complete renovation of the existing headworks at Plant No. 1, including demolition of Headworks #1, replacement of the grit handling and odor treatment systems, replacement of Flow control gates, replacement of steel pipes, replacement of obsolete electrical and instrumentation equipment, coating replacement, and building refurbishment. Page 1 of 4 The Orange County Sanitation District (Sanitation District) advertised a Request for Proposal on December 1, 2014, and three proposals were received on January 20, 2015. Based on the overall qualifications and expertise, staff recommends awarding a Professional Design Services Agreement to Carollo Engineers, Inc. The evaluation and selection process is based on procedures pursuant to the California Government Code requiring the Sanitation District to select "the best qualified firm" for architectural and engineering services and to negotiate a "fair and reasonable" fee with that firm. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION General The P1-105 project will rehabilitate and upgrade the Plant 1 Headworks facilities and associated support systems including odor control and power distribution. The project will also demolish the original Headworks #1 structures and pumping capacity that has been partially out of service for years. The nature of the work is highly complex and poses many risks that require thorough mitigation. The project's greatest challenge will be maintaining operation of Headworks #2 during construction. In a number of cases, this will involve the design and construction of temporary facilities and bypass pumping. Worker safety and system reliability will require more engineering thought than normal projects. Clearly defining work restrictions and project sequencing are critical for risk mitigation and change order control. Request for Proposal: A Request for Proposal which describes the Consultant's Scope of Work required for this project was advertised on December 1, 2014. As a result, proposals were received from Carollo Engineers, CDM Smith, and Parsons on January 20, 2015. A Staff Evaluation Committee consisting of five representatives from Engineering, and Operations and Maintenance Departments reviewed and ranked each of the proposals in accordance with the evaluation process set forth in Sanitation District Board of Directors' Ordinance No. OCSD-44. A representative from the Contracts Administration Division participated in the evaluation process as a non-voting member. The proposals were evaluated according to the following criteria: (1) project approach, construction sequencing, and risk mitigation; (2) related project experience; and (3) project team and staff qualifications. After reviewing and scoring the proposals, the three Consultant firms were ranked according to the score achieved. The Evaluation Committee interviewed all three proposing firms to meet the proposed key team members and further evaluate the firms' proposals. Pursuant to the results of the interview, the Evaluation Committee selected Carollo Engineers as the top-ranked firm as shown in Table 1. Page 2 of 4 TABLE 1 PROPOSAL EVALUATION* Carollo CDM Parsons Consultant Evaluator Engineers Smith Reviewer A 1 2 3 Reviewer B 1 2 3 Reviewer C 1 2 3 Reviewer D 1 2 3 Reviewer E 1 2 3 Overall Ranking 1 2 3 Proposal Fee $15,736,320 NA NA Negotiated Fee Proposal $17,528,957 NA NA *Based on scores after interview Carollo Engineers was unanimously ranked highest by the Evaluation Committee based on all three criteria. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposal estimates. The fee proposal of the highest ranked firm was not opened until the proposals were evaluated and a top- ranked firm was selected in accordance with Sanitation District Ordinance No. OCSD-44. Staff conducted extensive negotiations with Carollo Engineers to clarify the requirements of the Scope of Work, the assumptions to be used for the estimated level of effort, and the level of design detail required for construction risk mitigation. These negotiations identified significant additional effort that would be needed as a result of the complexity and risks associated with the work. As a result of these negotiations, Carollo Engineers submitted a revised fee proposal. In evaluating whether the fee proposal was fair and reasonable, the following factors were considered: • The estimated level of effort was evaluated in detail for each phase, task, and subtask, and found to be justified by the needs or the project, the agreed-upon assumptions, and the Sanitation District's expectation for the quality of services. • The negotiated fee proposal is based on producing a set of bid documents with over 1,600 drawings. The total hours associated with producing the bid documents per drawing is reasonable and consistent with other Sanitation District projects of similar complexity. • The total fee expressed as a percentage of construction cost is 11%, which is reasonable and appropriate for a rehabilitation project involving complex and high risk sequencing requirements. Page 3 of 4 • The Consultant's fringe and overhead costs, which factor into the billing rate is consistent with other similar agreements. The contract profit is 5%, which is based on the Sanitation District's standard design agreements. Based on the above, staff determined the final cost proposal to be fair, reasonable, and appropriate for the Scope of Work and recommends awarding the Professional Design Services Agreement to Carollo Engineers. CEQA Notice of Exemption was filed on April 29, 2014. BUDGET/PURCHASING ORDINANCE COMPLIANCE This request complies with the authority levels in the Sanitation District's Purchasing Ordinance. This item has been budgeted (Line item: FY 2014-15 and 2015-16, Section 8, Page 51) and the project budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Professional Design Services Agreement • PowerPoint Presentation from Operations Committee Meeting 05/06/15 JM:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27' day of May, 2015 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and CARDLLO ENGINEERS, INC., for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for Headworks Rehabilitation and Expansion at Plant 1, Project No. P1-105; and to provide Design services for the headworks facilities at the SANITATION DISTRICT's Plant No. 1. The CONSULTANT will conduct Predesign Evaluation Studies, preparation of a Preliminary Design Report, and preparation of construction contract documents for construction of the proposed projects. The construction work will involve repairs, modifications, and rehabilitation of existing facilities that are actively in service. The plans and specifications must be prepared to ensure that the existing operations are not unduly impacted by construction of the proposed improvements. WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on May 27, 2015 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to SANITATION DISTRICT Board of Directors' Ordinance No. OCSD-44 to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. PDSA PROJECT NO.PI.105 Remed 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 1 of 19 B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the standards of best engineering practice for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of 30 calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 2 of 19 F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that (a)was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT, (b)subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. 2. ACCESS The SANITATION DISTRICT shall arrange for access to and make all privisions for CONSULTANT to enter upon pubic and private property as required for CONSULTANT to perform services hereunder. 3. COST ESTIMATES The CONSULTANT has no control over the cost of labor, materials, equipment or services furnished by others, or over the construction contractor's methods of determining prices, or other competitive bidding or market conditions, practices or bidding strategies. CONSULTANT shall use best engineering practices along with experience and judgment, utilizing current local costs of labor, materials, equipment or services to prepare cost estimates. CONSULTANT cannot and does not guarantee that proposals, bids, actual Project construction, operation and/or lifecycle costs wil not vary from cost estimates prepared by CONSULTANT. 4. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed Seventeen Million Five Hundred Twenty Eight Thousand Nine Hundred Fifty Seven Dollars (E17,528,957). Total compensation to CONSULTANT including burdened labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E" - Fee Proposal. B. Labor As a portion of the total Compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 3 of 19 C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment"E"- Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E"- Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 4 -COMPENSATION above. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 4 of 19 G. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of the above mentioned expenses will be based on an "accountable plan' as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at htto://www.asa.aov/portal/cateaorv/104711#. The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem' as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 5 of 19 H. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. 5. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 6. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 13-AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 4- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 6 of 19 i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 4 -COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 7 of 19 the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 7. PREVAILING WAGES To the extent CONSULTANT intends to employ employees who will perform work during the design and preconstruction phases of a construction contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. 8. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 9. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 8 of 19 herein specified. Said substitution shall occur within twenty (20)days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: Two Million Dollars ($2,000,000) per occurrence with Two Million Dollars ($2,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability(for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000) or alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of PDSA PROJECT NO.PI.105 Remed 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 9 of 19 One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Six Million Dollars ($6,000,000) with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5)years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The SANITATION DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, effecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 10 of 19 • Certificate of Insurance ACORD Form 25 (5/2010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (512010) shall state the required thirty (30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, Div. 260, and shall be received by the SANITATION DISTRICT not less than thirty (30)days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. I. Primary Insurance All liability policies, except for Worker's Compensation and Errors and Omissions/ Professional Liability Insurance, shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. J. Separation of Insured All liability policies, except for Worker's Compensation and Errors and Omissions/ Professional Liability Insurance, shall contain a "Separation of Insureds" clause. PDSA PROJECT NO.PI.105 Remed 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 11 of 19 K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. M. Defense Costs Liability policies, except for Errors and Omissions/Professional Liability Insurance, shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 10. SCOPE CHANGES In the event of a change in the Scope of Work, requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 12 of 19 11. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT's project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant on a per-project-element basis, broken down as indicated in Section 4- COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 12. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer. Such services hereunder will be performed under the direct supervision of registered engineers. 13. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 13 of 19 be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 14. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. 15. THIRD PARTIES This Agreement is entered into by and for the SANITATION DISTRICT and the CONSULTANT, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. 16. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Natasha Dubrovski, Principal Contracts Administrator Copy: Jeff Mohr, Project Manager Notices shall be mailed to CONSULTANT at: CARDLLO ENGINEERS, INC. 3150 Bristol Street, Suite 500 Costa Mesa, CA 92626 Attention: Douglas J. Lanning, Project Manager Copy: Walid Karam, Project Director All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT's staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 17. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty(30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. PDSA PROJECT NO.PI.105 Remed 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 14 of 19 CONSULTANT shall be permitted to terminate this Agreement upon thirty (30)days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 16- NOTICES. 18. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 19. COMPLIANCE CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 20. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 21. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS'), or similar organization or entity conducting alternate dispute resolution services. 22. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 15 of 19 23. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2)future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 24. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 25. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Suboonsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (13)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 16 of 19 Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 26. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 27. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. 28. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all SANITATION DISTRICT policies and procedures including the Safety Manual, as applicable, all of which may be amended from time to time. PDSA PROJECT NO.PI.105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 17 of 19 29. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30)days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 30. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.PI.105 Reme8100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: CARDLLO ENGINEERS, INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Clerk of the Board Date By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A" Scope of Work Attachment "B" Not Used (Labor Hour Matrix—included in Attachment E) Attachment "C' Not Used Attachment"D" Allowable Direct Costs Attachment "E" Fee Proposal Attachment "F" Not Used Attachment "G' Not Used Attachment "H" Not Used Attachment "I" Not Used (Cost Matrix and Summary—included in Attachment E) Attachment "J" Not Used Attachment "K" Not Used (Hourly Rate Schedule for Minor Subconsultants—included in Attachment E) Attachment"L" OCSD Safety Standards NKD:yp PDSA PROJECT NO.Pl-105 Revised 100814 HEADWORKS REHABILITATION AND EXPANSION AT PLANT 1 Page 19 of 19 Headworks Rehabilitation at Plant No. 1 ( P1-105) IV u Jeff Mohr, CIP Project Manager May 6, 2015 Headworks Facilities Are Aging r •: 1 � s _ y s - 16 years 23 years 28 years 43 years r EM 57 years its On RL Revised Headworks Planning Approach Previous Planm Revised Plan Starting Year I 2015 2024 I 2015 Cancel Equipment and Material Rehab X X I X Increase Capacity X I None** Level of Service Upgrades X I X Demolish Headworks 1 I X I X Construction Cost, $million I 44 155 I 155 0 ** Flows are decreasing - more capacity not needed in the foreseeable future Rehabilitation of Existing Facilities j M & D Structure Oil Bar Screens � i sl Bin Loading Z \ .Sid \__ ) ; i, Main Sewage PS '` �A Grit Basins I I Demolition of Unused Facilities o \, Headworks 1 Chlorine Building Grit Handling Upgrades and Replacements Replacement i pumping capacity Bin Loading Modifications Grit Pumping wr `� (new) -.tee •�;: �,� .�, Grit Handling O Building (replacement) *w �` Odor Control (upgrades) Power Building 3B t (new) Key Challenge : Metering & Diversion Box Rehab ®w.w.�-w..� aDrW ` t mi 35.0000 tom' W sot =54M MWEtlA0007A' '0 WPOW7 ® ®fvrP00tU170W 61'-RCP SAR0007 -O SANU010-0Of70 gy 1D34 SAN0007-p ® '� ryrSlrx101SikkJO � i • Needed repairs in box ©BKR"50 I requires taking each major sewer line out of service Requires complex bypass pumping Risk of upstream impacts during construction Key Challenge : Replacing Influent Meter Runs Only access to 2A replace spools is through an opening above a wi pipe. New 2E •: 2B monorail needed �' Walkway must for construction 2D ; be removed I and replaced to replace pipe 2C sections below Severe corrosion at top of pipes 2F Key te Challenge : • Replacements S • hydraulic gates •� , require replacement Some • .� • l require major shutdowns and flow diversions � �►yn � o preparationMhuium�nllM construction problems. ■� , 11 �n■n■n■rnI■on�r �1� rrM�IY��Y�.11f! - o- Key Challenge : Replacing 40 mgd Pumping Capacity ti tira ' +4 Increase capacity of existing pumps Add 2 new pumps to existing PS (potential hydraulic problems) (difficult construction) Build new, separate /- pump station cam ` (complex to operate, � < difficult to maintain) Key Challenge : Plant No . 1 Channel Replacement -a - MOWL d s i r 'ice♦ / '�gt High risk tie-in to existing channel i Key Challenge : Replacing Odor Control System - Scrubbers 1-4 Remai Chemical Facility During Construction v/ ^I i New odor control — �- 10-it Diameter Scrubbers system must be for 122,000 ctm on-line before Biotowers for Space Tor Integrated Headworks Foul Air NRW Odor Control in existing can be the Future demolished J Design and Construction Costs • Construction Cost = $ 155 million ( revised ) • Predesign and Design Costs — Previous Plant Rehab Projects = 11% to 25% construction cost — Negotiated fee = $17.5 million ( 11% construction cost) blk\ Carollo Engineers Most Qualified Firm • Outstanding experience, staff, and a clear approach to understanding and managing risks. • Level of effort increased during negotiations to mitigate future risks — Added design of temporary facilities during construction — Provisions included if more complex alternatives are selected — Design of shoring and dewatering added for protection of existing facilities • Hours are appropriate for complexity of project • Rates are fair and reasonable Recommendations • Cancel Headworks Expansion, Project No . P1- 120 • Increase P1-105 project budget Proposed Construction Cost $44,181,000 $155,000,000 Project $76,476,000 $235,273,000 • Approve a Professional Design Services Agreement with Carollo Engineers to provide engineering design services for an amount not to exceed $ 17,528,957 • Approve a PDSA contingency of $ 1,752,896 ( 10%) . ITEM NO. 12 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, May 13, 2015, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Vice-Chair Curry on May 13, 2015, at 5:30 p.m., in the Administration Building of the Orange County Sanitation District. Chair Beamish led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Tom Beamish, Board Chair Jim Herberg, General Manager John Withers, Chair Bob Ghirelli, Assistant General Manager Keith Curry, Vice-Chair Lorenzo Tyner, Director of Finance Steven Choi Rob Thompson, Director of Engineering Tyler Diep Kelly Lore, Clerk of the Board James Ferryman Jennifer Cabral Peter Kim Norbert Gaia Greg Mills Al Gard Glenn Parker Randy Kleinman Erik Peterson (Alternate) Kathy Millea Teresa Smith Richard Spencer Sal Tinajero Mike White John Nielsen, Board Vice-Chair Eros Yong COMMITTEE MEMBERS ABSENT: OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Vice-Chair Curry did not provide a report. W13/2015 Administration Committee Minutes Page 1 of 5 REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, reported that an invitation has been received from SAW PA to hold a joint meeting/tour on Tuesday, June 2, 2015. The Clerk of the Board will send out notification to the Directors. Committee Chair Withers arrived at 5:31 p.m. and presided. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED and DULY CARRIED TO: Approve Minutes of the April 8, 2015, Administration Committee Meeting. AYES: Beamish, Choi, Curry, Diep, Ferryman, Mills, Peterson (Alternate) and Withers NOES: None ABSTENTIONS: Kim ABSENT: Nielsen, Parker, Smith and Tinajero 2. MOVED, SECONDED and DULY CARRIED TO: Ratify change order#1 to P.O. 104652-OB, Specification S-2011-498, issued to Clean Harbors Environmental Service for hazardous waste services for an additional $70,000 for a contract amount not to exceed $195,000, for the remainder of the contract ending June 30, 2017. AYES: Beamish, Choi, Curry, Diep, Ferryman, Kim, Mills, Peterson (Alternate) and Withers NOES: None ABSTENTIONS: None ABSENT: Nielsen, Parker, Smith and Tinajero 0513/2015 Administration Committee Minutes Page 2 of 5 3. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file District purchases made under the General Manager's authority for the period of January 1, 2015 - March 31, 2015. AYES: Beamish, Choi, Curry, Diep, Ferryman, Kim, Mills, Peterson (Alternate) and Withers NOES: None ABSTENTIONS: None ABSENT: Nielsen, Parker, Smith and Tinajero 4. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2015. AYES: Beamish, Choi, Curry, Diep, Ferryman, Mills, Peterson (Alternate) and Withers NOES: None ABSTENTIONS: Kim ABSENT: Nielsen, Parker, Smith and Tinajero Director Parker arrived at 5:36 p.m. Vice-Chair Nielsen arrived at 5:37 p.m Director Smith arrived at 5:40 p.m. Director Tinajero arrived at 5:42 p.m. NON-CONSENT CALENDAR: Dennis Mulqueeney, Sr. Vice-President of Alliant, provided a PowerPoint presentation regarding the proposed insurance rates and answered questions regarding: rate increases; claims and earthquake insurance. 5. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Approve not-to-exceed numbers as follows, with the understanding that the Sanitation District's insurance broker will continue to negotiate with insurers to seek the lowest possible premiums prior to the expiration date of the current major insurance policies: A. Excess liability insurance - $4037662. 0513/2015 Administration Committee Minutes Page 3 of 5 B. Excess workers compensation insurance - a rate of $0.3805 per $100 of payroll (estimated premium at $240,000). C. Property and Boiler & Machinery combined - $705,186. D. Earthquake insurance - $88,587. AYES: Beamish, Choi, Curry, Diep, Ferryman, Kim, Mills, Nielsen, Parker, Peterson (Alternate), Smith, Tinajero and Withers NOES: None ABSTENTIONS: None ABSENT: None INFORMATION ITEMS: 6. Capital Improvement Program (CIP) Update for FY 2015-16 Director of Engineering, Rob Thompson provided an informative PowerPoint presentation regarding the CIP budget for FY 2015/16 including: the budget process; drivers for new CIP projects; condition assessment program; the top budget increases and decreases; project cancellations; new projects at Plant Nos. 1 & 2, the collections systems and the proposed 10-year CIP spending. Mr. Thompson answered questions regarding: odors; procedures and timeframes for replacement of pipes; bypass of flow; robot detection; and types and life expectancy of pipes. Director Diep departed the meeting at 6:10 p.m. 7. Informational Presentation on the 2015-16 Budget Director of Finance and Administrative Services, Lorenzo Tyner provided a short PowerPoint presentation on the 2015-16 budget update including: revenues and outlays; CIP - four distinct areas, dropped rate increases and comparison SFR rates. Mr. Tyner answered questions regarding: Outstanding UAL paydown; reduced rate increases; public outreach; debt payments and debt issuance. Beamish complimented the past and current Boards and Staff on the financial affairs of the District. Mr. Herberg answered further questions and received comments regarding: GWRS; influent totals; percentages recycled; recent grand jury report; strategic goal for 100% recycling; and current policy/agreement with OCWD for GWRS. Director Smith departed the meeting at 6:32 p.m. 0513/2015 Administration Committee Minutes Page 4 of 5 CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Committee Chair Withers declared the meeting adjourned at 6:55 p.m., to the next regularly scheduled meeting of June 10, 2015 at 5:30 p.m. Submitted by: Kelly A. Lore Clerk of the Board 0513/2015 Administration Committee Minutes Page 5 of 5 ADMINISTRATION COMMITTEE MeedngDate TOBd.orDir. 0 5 /13115 Os/27/ls AGENDA REPORT Item Number Item Number 3 13 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: GENERAL MANAGER APPROVED PURCHASES GENERAL MANAGER'S RECOMMENDATION Receive and file District purchases made under the General Manager's authority for the period of January 1, 2015 - March 31, 2015. SUMMARY In accordance with Board purchasing policies, Ordinance OCSD-44, the General Manager has authority to approve purchases between $50,000 and $100,000. Below is a summary of General Manager approved purchases exceeding $50,000 for the third quarter of fiscal year 2014-15. SUMMARY Vendor Name Amount Department Description/Discussion General Legal Services for Klean Waters Downey Brand, LLP $99,000.00 Manager's Office Hearing Sole Source# 1170 ENS Resources, Inc. $90,000.00 General Fed. Leg. Adv. Services Manager's Office Sec#CS-2014-633BD Gallager Benefit $gg,000.00 Human Resources Class &Comp Studies Services Sec#CS-2014-63OBD Graybar Electric Operations & Parts &Supplies for the I&E Dept. Com an Walnut $75,000.00 Maintenance Co-op - US Communities Onesource Operations & Parts&Supplies for the I&E Dept. Distributors, Inc. $75,000.00 Maintenance Convenience Blanket Rutan &Tucker General Emergency Third Party Legal Attorneys At Law $99,000.00 Manager's Office Services Sole Source# 1162 Townsend Public General State Leg. Adv. Services Affairs $60,000.00 Man a er's Office Sec#CS-2014-634BD Yale/Chase Materials Facilities Support Six (6)Cargo Carts, Taylor Dunn Handling andlin $67,902.30 Services Approved CORF FY 14/15 PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 d 2 ADDITIONAL INFORMATION N/A CEQA N/A ATTACHMENT N/A Page 2 of 2 ADMINISTRATION COMMITTEE Needng Dare TOBd.Of Dlr. 0113115 OS/27/15 AGENDA REPORT Item Number Item Number 4 14 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: CONSOLIDATED FINANCIAL REPORT FOR THE THIRD QUARTER ENDED MARCH 31, 2015 GENERAL MANAGER'S RECOMMENDATION Receive and file Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2015. SUMMARY Included in this consolidated report are the following quarterly financial reports for the period ended March 31, 2015: Third Quarter Budget Review The Budget Review Summary provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the third quarter ended March 31, 2015. • Quarterly Treasurer's Report This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the U.S. and global economic outlook from the Sanitation District's investment manager, Chandler Asset Management. • Certificates of Participation Quarterly Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 of 2 ADDITIONAL INFORMATION N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Consolidated Financial Reports for the Third Quarter Ended March 31, 2015. NOTE: The Executive Summary from the Comprehensive Quarterly Financial Report for the third quarter ended March 31, 2015 is included in hard copy;the entire report is available on-line at the OCSD website(www.ocsd.com) with the complete agenda package. Page 2 of 2 Executive Summary Consolidated Financial Reports For the Third Quarter Ended March 31, 2015 Included in this consolidated report are the following quarterly financial reports for the period ended March 31, 2015: • Third Quarter Budget Review: The Budget Review Summary provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the third quarter ended March 31, 2015. Contained within this Budget Review is the budget-to-actual status of the Collections, Treatment & Disposal Operations, the Capital Improvement Program, the Self-Insurance Program, and Debt Service Outlays. Also included is a Capital Assets Schedule as of March 31, 2015. Various detail information can be found in this report. In summary: a) Most major expense categories are anticipated to be at or below budget. b) Total revenues are at 152.4 percent mainly due to the receipts of $388.8 million from the issuance of Wastewater Refunding Revenue Obligations, Series 2014A and 2015A, and Revenue Refunding Certificate Anticipation Notes, Series 2014B, during the first three quarters of the fiscal year. The 2014A and 2015A Obligations were used to refund a portion of Certificate of Participation Series 2007E and the 2014E Notes were used to refund the Revenue Refunding Certificate Anticipation Notes, Series 2013A. Excluding debt financing proceeds, total revenues are at 60.5 percent of the budget. Except for Service Fees, Permit Fees, Capital Assessments, Property Taxes, and Interest Earnings, all other major revenue sources are currently tracking close to or exceeding revenue estimates. Overall, total revenues are projected to exceed budget at year-end. More detailed information on District revenues is provided within Section 1 — Pages 3 through 5. c) Collection, Treatment and Disposal Costs: As indicated within the Budget Review Summary of this report, the net operating requirements through the third quarter of $105.1 million is currently tracking at 68.9 percent of the $152.5 million budget. In addition, net operating expenses have increased $358,000 or 0.3 percent in comparison with the same period last year. Overall, staff expects the total operating costs to remain at or below budget throughout the remainder of the year. More detailed information on District operating expenses is provided within Section 1- Pages 1 through 3. Page 1 2014-15 Third Quarter Review The total cost per million gallons is approximately $2,024.8 based on flows of 189.4 million gallons per day. This is $64.2 per million gallons, or 3.1 percent lower than the budgeted cost per million gallon per day. A further description of these costs and benchmarking with other agencies is contained within Section 1 — Pages 6 through 8. d) The total projected capital outlay cash Flow of the Capital Improvement Program (CIP) for FY 2014-15 has been revised to $153.8 million, or 90.9 percent of the board approved cash outlay of$169.2 million. The actual cash outlay spending through the third quarter is $106.7 million, or 63.1 percent of the total budgeted outlay. More detailed information on the CIP budget review can be found in Section 3. • Quarterly Treasurer's Report; This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the national economic outlook from the Sanitation District's money manager, Chandler Asset Management (Chandler). Chandler reported that the Long-Term Portfolio returned 82 basis points over the quarter, underperforming the Bank of America Merrill Lynch 1-5 year AAA U.S. Corporate and Government Index by 14 basis points, while the Liquid Operating Monies Portfolio returned 7 basis over the quarter, outperforming its benchmark, the three-month Treasury Bill index return of 0 basis points. Chandler further notes that the Job growth was weaker than expected in March with nonfarm payrolls up 126,000, well below the consensus forecast of 245,000. The unemployment rate was unchanged at 5.5%, though the labor participation rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected). Unfavorable weather and the strong dollar were likely factors for weak job growth in March. Overall, there is still excess slack in the labor market. Growth in the manufacturing sector has also softened. Chandler believes the strong U.S. dollar and sluggish economic growth abroad has dampened U.S. manufacturing trends. U.S. consumer confidence remains strong, but consumer spending trends have underwhelmed. Housing data remains volatile but the overall trajectory seems positive. There have been pockets of weakness in recent economic data, but some of the factors for this weakness may be transitory (such as unfavorable weather and the West Coast port delays). The Federal Open Market Committee (FOMC) left policy rates unchanged at its March 17-18 meeting, without any dissenting votes. The Committee noted economic activity moderated and the inflation rate declined further. The word "patient" (with regard to the timing of a potential future rate hike) was removed from the policy statement but the Committee indicated a rate hike at the next Page 2 Executive Summary FOMC meeting in April is unlikely. The Fed left the door open for a possible rate hike in June, but we believe the first rate hike is likely to occur later in the second half of this year. Notably, the Fed expects to see further improvement in the labor market before it starts to raise rates, which implies the Fed remains dissatisfied with current employment conditions. The Committee also needs to be confident inflation will move back to its 2% target, before they raise rates. With inflation low, we believe the Fed faces no urgency to begin raising rates. Even though the Committee removed the word "patient" from its policy statement, Chandler believes the Fed's overall message was somewhat dovish, which makes a June rate hike unlikely in their view. Chandler believes ongoing uncertainty about the timing of the Federal Reserve's first interest rate hike will likely continue to fuel market volatility. The yield curve flattened in March. Domestic economic data has recently softened, and the timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank continues to execute its bond-buying program and other global central banks are pursuing highly accommodative monetary policies. Economic Outlook Chandler continues to expect GDP to grow between 2.5-3.0% in 2015, compared to growth of 2.4% in 2014. Inflation remains below Federal Reserve targets, and with the price of oil poised to stay in a relatively tight range through the summer months, it is unlikely inflation metrics will accelerate in the near term. Although the Federal Reserve modestly lowered their economic projections in March, the Fed's outlook still appears more constructive compared to the consensus market view. Chandler expects global central banks to continue to be a source of market volatility as unconventional policies are adopted abroad and the Federal Reserve attempts to normalize policy in the United States. The dollar index improved by close to 9% during the first quarter, and dollar strength should continue, although the rate of change is unlikely to be as significant in the coming quarter. The strong dollar is starting to negatively impact corporate earnings, which Chandler believes will be a contributing factor in causing the Federal Reserve to eventually lower their forecast closer to the market in the coming quarters. Chandler anticipates a range bound market, and given the overall strength in corporate balance sheets, still believes it makes sense to stay invested in the corporate market. • Quarterly Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. Page 3 f Orange County Sanitation District 4, -'. Third Quarter ' . Financial Report for the period ended March 31, 2015 r � L . Orange County, California Table of Contents ExecutiveSummary...................................................................................................1 Budget Review Section 1 — Budget Review Summary...................................................................................1 Section 2—Operating Budget Review Chart of the Cost per Million Gallons by Department—Budget and Actual..............1 Chart of the Net Expenses by Major Category— Budget and Actual........................1 Divisional Contributions to Cost Per Million Gallons ................................................2 Comparison of Expenses by Department.................................................................3 Summary of Collection, Treatment, and Disposal Expenses by Major Category.....4 Summary of District-Wide Revenues .......................................................................5 Summary of Collection, Treatment and Disposal Revenues....................................5 Summary of Collection, Treatment, and Disposal Expenses by Line Item...............6 Summary of Collection, Treatment, and Disposal Expenses by Process.................8 Chartof Staffing Trends...........................................................................................9 Section 3—Capital Improvement Program Budget Review Capital Improvement Program Graphs by Type and Funding Source......................1 Summary of Capital Improvement Construction Requirements - Current Year........2 Summary of Capital Improvement Construction Requirements - Project Life..........6 Section 4—Capital Assets Schedule & Debt Service Budget Review CapitalAssets Schedule ..........................................................................................1 Debt Service Budget Review....................................................................................1 Section 5—Self Insurance Budget Review General Liability and Property Fund Budget Review................................................1 Workers' Compensation Fund Budget Review.........................................................2 Quarterly Treasurer's Repo rt........................................................................................1 QuarterlyCOP Repo rt.................................................................................................1 FY 2014-15 Third Quarter Financial Report This Page Intentionally Left Blank Executive Summary Consolidated Financial Reports For the Third Quarter Ended March 31, 2015 Included in this consolidated report are the following quarterly financial reports for the period ended March 31, 2015: • Third Quarter Budget Review: The Budget Review Summary provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the third quarter ended March 31, 2015. Contained within this Budget Review is the budget-to-actual status of the Collections, Treatment & Disposal Operations, the Capital Improvement Program, the Self-Insurance Program, and Debt Service Outlays. Also included is a Capital Assets Schedule as of March 31, 2015. Various detail information can be found in this report. In summary: a) Most major expense categories are anticipated to be at or below budget. b) Total revenues are at 152.4 percent mainly due to the receipts of $388.8 million from the issuance of Wastewater Refunding Revenue Obligations, Series 2014A and 2015A, and Revenue Refunding Certificate Anticipation Notes, Series 2014B, during the first three quarters of the fiscal year. The 2014A and 2015A Obligations were used to refund a portion of Certificate of Participation Series 2007B and the 2014E Notes were used to refund the Revenue Refunding Certificate Anticipation Notes, Series 2013A. Excluding debt financing proceeds, total revenues are at 60.5 percent of the budget. Except for Service Fees, Permit Fees, Capital Assessments, Property Taxes, and Interest Earnings, all other major revenue sources are currently tracking close to or exceeding revenue estimates. Overall, total revenues are projected to exceed budget at year-end. More detailed information on District revenues is provided within Section 1 — Pages 3 through 5. c) Collection, Treatment and Disposal Costs: As indicated within the Budget Review Summary of this report, the net operating requirements through the third quarter of$105.1 million is currently tracking at 68.9 percent of the $152.5 million budget. In addition, net operating expenses have increased $358,000 or 0.3 percent in comparison with the same period last year. Overall, staff expects the total operating costs to remain at or below budget throughout the remainder of the year. More detailed information on District operating expenses is provided within Section 1- Pages 1 through 3. Page 1 2014-15 Third Quarter Review The total cost per million gallons is approximately $2,024.8 based on flows of 189.4 million gallons per day. This is $64.2 per million gallons, or 3.1 percent lower than the budgeted cost per million gallon per day. A further description of these costs and benchmarking with other agencies is contained within Section 1 — Pages 6 through 8. d) The total projected capital outlay cash flow of the Capital Improvement Program (CIP) for FY 2014-15 has been revised to $153.8 million, or 90.9 percent of the board approved cash outlay of$169.2 million. The actual cash outlay spending through the third quarter is $106.7 million, or 63.1 percent of the total budgeted outlay. More detailed information on the CIP budget review can be found in Section 3. • Quarterly Treasurer's Report; This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the national economic outlook from the Sanitation District's money manager, Chandler Asset Management (Chandler). Chandler reported that the Long-Term Portfolio returned 82 basis points over the quarter, underperforming the Bank of America Merrill Lynch 1-5 year AAA U.S. Corporate and Government Index by 14 basis points, while the Liquid Operating Monies Portfolio returned 7 basis over the quarter, outperforming its benchmark, the three-month Treasury Bill index return of 0 basis points. Chandler further notes that the Job growth was weaker than expected in March with nonfarm payrolls up 126,000, well below the consensus forecast of 245,000. The unemployment rate was unchanged at 5.5%, though the labor participation rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected). Unfavorable weather and the strong dollar were likely factors for weak job growth in March. Overall, there is still excess slack in the labor market. Growth in the manufacturing sector has also softened. Chandler believes the strong U.S. dollar and sluggish economic growth abroad has dampened U.S. manufacturing trends. U.S. consumer confidence remains strong, but consumer spending trends have underwhelmed. Housing data remains volatile but the overall trajectory seems positive. There have been pockets of weakness in recent economic data, but some of the factors for this weakness may be transitory (such as unfavorable weather and the West Coast port delays). The Federal Open Market Committee (FOMC) left policy rates unchanged at its March 17-18 meeting, without any dissenting votes. The Committee noted economic activity moderated and the inflation rate declined further. The word "patient" (with regard to the timing of a potential future rate hike) was removed from the policy statement but the Committee indicated a rate hike at the next Page 2 Executive Summary FOMC meeting in April is unlikely. The Fed left the door open for a possible rate hike in June, but we believe the first rate hike is likely to occur later in the second half of this year. Notably, the Fed expects to see further improvement in the labor market before it starts to raise rates, which implies the Fed remains dissatisfied with current employment conditions. The Committee also needs to be confident inflation will move back to its 2% target, before they raise rates. With inflation low, we believe the Fed faces no urgency to begin raising rates. Even though the Committee removed the word "patient" from its policy statement, Chandler believes the Fed's overall message was somewhat dovish, which makes a June rate hike unlikely in their view. Chandler believes ongoing uncertainty about the timing of the Federal Reserve's first interest rate hike will likely continue to fuel market volatility. The yield curve flattened in March. Domestic economic data has recently softened, and the timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank continues to execute its bond-buying program and other global central banks are pursuing highly accommodative monetary policies. Economic Outlook Chandler continues to expect GDP to grow between 2.5-3.0% in 2015, compared to growth of 2.4% in 2014. Inflation remains below Federal Reserve targets, and with the price of oil poised to stay in a relatively tight range through the summer months, it is unlikely inflation metrics will accelerate in the near term. Although the Federal Reserve modestly lowered their economic projections in March, the Fed's outlook still appears more constructive compared to the consensus market view. Chandler expects global central banks to continue to be a source of market volatility as unconventional policies are adopted abroad and the Federal Reserve attempts to normalize policy in the United States. The dollar index improved by close to 9% during the first quarter, and dollar strength should continue, although the rate of change is unlikely to be as significant in the coming quarter. The strong dollar is starting to negatively impact corporate earnings, which Chandler believes will be a contributing factor in causing the Federal Reserve to eventually lower their forecast closer to the market in the coming quarters. Chandler anticipates a range bound market, and given the overall strength in corporate balance sheets, still believes it makes sense to stay invested in the corporate market. • Quarterly Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. Page 3 2014-15 Third Quarter Review This Page Intentionally Left Blank Page 4 Budget Review Summary Third Quarter Financial Report March 31, 2015 Financial Management is pleased to present the FY 2014-15 third quarter financial report. This report provides a comprehensive overview of the financial condition of the Sanitation District and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. Operating Budget Review., This section reports on collection, treatment and disposal net operating requirements. At March 31, 2015, 68.9 percent, or $105.1 million of the FY 2014-15 net operating budget of $152.5 million has been expended. Net operating expenses increased from the same period last year by $358,000, or 0.3 percent, mainly due to an increase of $1.3 million in Salaries and Benefits, $274,000 in Administrative Expenses, $66,000 in Operating Materials and Supplies, $1.4 million in Repairs and Maintenance, and $528,000 in Utilities. These cost increases have been partially offset by decreases of $506,000 in Contractual Services, $232,000 in Professional Services, $254,000 in Other Operating Supplies, and an increase of $2.1 million in indirect costs allocated out to capital projects. These and other variances that factor into this net increase in expenses are discussed in more detail below. Overall, staff expects the total operating costs to remain below budget throughout the remainder of the year. Significant operating results as of March 31, 2015 include the following: • Salaries. Wages and Benefits — Personnel costs of $70.6 million are at target at 71.2 percent of budget through the third quarter of FY 2014-15. Although the budget is based on a 3 percent vacancy factor, staffing is 51 full-time equivalents (FTE's), or 8.1 percent below the total 626 FTE's approved in the FY 2014-15 budget. Salary and benefit costs are 1.8 percent, or $1.2 million higher than the $69.4 million incurred in the same period last year, mainly due to the increase of wages, medical insurance, and workers' compensation costs. Net operating personnel costs are expected to approximate budget throughout the remainder of the year. • Administrative Expenses — Administrative Expenses totaled $1.2 million, or 83.3 percent of the $1.4 million budget through March 31. These costs are $274,000 or 30.8 percent higher at March 31 in comparison with the prior year mainly due to an increase of $220,000 in purchases of small computer items. It is anticipated that the administrative costs will approximate budget at year-end. • Printing and Publication Expenses — Printing and Publication Expenses totaled $202,000, or 49.4 percent of the $409,000 budget through March 31. These costs are $16,000 or 7.5 percent lower at March 31 in comparison with the prior Section 1 - Page 1 FY 2014-15 Third Quarter Report year. It is anticipated that the printing and publication costs will be below budget at year-end • Training and Meetings — Training and meetings of $475,000 are below target at 45.6 percent of the $1.0 million budget. This account is lower than the proportionate budget due to the timing of training throughout the year. These costs have decreased over the same period last year by $68,000 or 12.6 percent. Total training and meeting costs are anticipated to be below budget at year-end. • Operating Materials and Supplies — Operating materials and supplies of $11.5 million is at target at 72.6 percent of budget through March 31. Operating Materials and Supplies have slightly increased from the prior year by $66,000 or 0.6 percent, primarily due to increases in Chemical Coagulants of $70,000 and Odor Control of $235,000, offset by decreases in Safety Equipment/Tools of $212,000. The increases are mainly brought about by timing of chemical deliveries, usage, annual testing, and rate increases. Based on current processes, operating materials and supplies are anticipated to approximate budget at year-end. • Contractual Services — Overall costs for contractual services are below target at approximately $15.9 million or 65.5 percent of budget through March 31. Solids Removal costs, budgeted at $18.3 million, comprise the majority of this expense category. With a decrease of $121,000, or 0.9 percent lower than the prior year, solids removal costs totaled $12.9 million, or 70.5 percent of budget at March 31. In addition, other contractual services decreased by $375,000 due to a decrease in manhole rehabilitation projects. Overall, Contractual Services is lower by $506,000 or 3.1 percent, over the same period last year. Total contractual services costs are anticipated to approximate or be below budget at year-end. • Professional Services — Professional services costs totaled $1.8 million or 55.3 percent of the $3.2 million budget through March 31. Many professional service costs, such as Audit and Accounting, Engineering, Software Program Consulting Services, Labor Negotiation, and Other Services, are proportionately low through March 31 due to a variety of factors such as services being in the planning or request for proposal stage, services not being needed until later in the fiscal year, the need for the service is being re-evaluated, or utilization of internal staffing for projects. These costs are $232,000 or 11.5 percent lower at March 31 in comparison with the prior year mainly due to timing of services performed. It is anticipated that the costs for this category will be below budget at year-end. • Research & Monitoring — Research and monitoring costs totaled $618,000, or 74.4 percent of the $830,000 budget through March 31. These costs are $39,000, or 6.7 percent higher at March 31 in comparison with the prior year, mainly due to an increase of $34,000 in environmental monitoring to install an electronic navigation/communication suite onboard the District's Nerissa vessel. Total Research & Monitoring costs are anticipated to approximate budget at year- end. Section 1 - Page 2 Budget Review Summary • Repairs and Maintenance — Repair and maintenance costs totaled $8.1 million, or 62.4 percent of the $13.1 million budget through March 31. These costs are $1.4 million, or 20.0 percent higher at March 31 in comparison with the prior year, mainly due to current period additional anticipated service repairs, such as Plant 1 Headworks repairs and carbon media installation in Plant 2 trickling filters. Additionally, several prepayments totaling $432,000 made in the prior year for computer maintenance agreements were recognized as expenses in the current year. It is anticipated that the costs for this category will approximate budget at year-end. • Utilities — Utilities costs totaled $5.5 million, or 73.9 percent of the $7.4 million budget through March 31. These costs are $528,000 or 10.6 percent higher at March 31 in comparison with the prior year, primarily due to an increase in electricity and gas charges totaling $665,000 as a result of increased rates and usage primarily related to increased activity, offset by a decrease of $220,000 in Green Acres Project (GAP) water usage due to completion of Project J-109, Cengen Cooling Water System Replacement. The overall operating philosophy of the Central Generation facilities is to purchase electricity for power production rather than to purchase natural gas as a supplement to the digester gas needed to run the Central Generation facilities. This operating philosophy allows the Central Generation facilities to meet air emission requirements. It is anticipated that the costs will approximate budget at year-end. • Other Operating Supplies — Other operating supplies costs totaled $1.3 million, or 84.8 percent of the $1.5 million budget through March 31. These costs are $254,000 or 16.3 percent lower at March 31 in comparison with the prior year, primarily due to a decrease of $307,000 in general liability in-lieu premium charges based on the estimated amount required to maintain recommended reserve balances. This cost decrease has been partially offset by an increase of$101,000 in equipment rental for an emergency rental of a vector truck while a District's vector truck was under troubleshooting and repair. It is anticipated that the costs will be above or approximate budget at year-end. • Revenues — Service Fees & Property Taxes — Through March 31, revenues from service fees are at $168.8 million, or 58.4 percent of budget and Property taxes are $48.4 million, or 62.2 percent of budget. These items comprise the majority of the Sanitation District's revenues and are mostly collected by the County through the property tax roll and distributed to the Sanitation District throughout the year based on a set distribution schedule that begins in November of each year. These revenues are expected to approximate budget at year-end. • Revenues — Permittee User Fees — Permittee User Fees are at $9.3 million, or 67.7 percent of the $13.7 million budget. The number of permittees fluctuates from year to year as businesses are established or close their operations. The revenues through the third quarter are $265,000 or 2.8 percent lower in comparison Section 1 - Page 3 FY 2014-15 Third Quarter Report with the same period last year due to a decrease in amount of discharge from the permittees. It is estimated that the permittee user charges will be at or below budget at year-end. • Revenues — Inter District Sewer Use - SAWPA — Inter District Sewer revenues- SAWPA are at $1.8 million, or 70.1 percent of the $2.5 million budget. This revenue is derived from charges to the Santa Ana Watershed Protection Agency (SAWPA) for treatment of flows. These revenues are expected to be at or below budget at year-end. • Revenues — Intra District Sewer Use — IRWD — Intra District Sewer revenues- IRWD are at $1.8 million, or 77.8 percent of the $2.3 million budget. This revenue is derived from charges to the Irvine Ranch Water District (IRWD) for treatment of flows. The revenues through the third quarter are higher than the same period last year by $267,000 or 17.6 percent mainly due to an increase in unit costs of various charges. These revenues are expected to approximate budget at year-end. • Revenues - Sludge Disposal- IRWD - Sludge Disposal fees-IRWD are at $5.8 million, or 69.2 percent of the $8.4 million budget. The revenue is derived and fluctuated from flows discharged from IRWD to Sanitation District for the handling, treatment and disposal of solids. The revenues through the third quarter are higher than the same period last year by $2.3 million or 63.9 percent mainly due to a decrease of $1.4 million in prior year adjustments due to IRWD and an increase of $856,000 of quarterly billing in the current year. These revenues are expected to approximate budget at year-end. • Revenues — Capital Assessments- IRWD — Capital Assessments-IRWD are at $280,000, or 8.1 percent of the $3.5 million budget. The revenues through the third quarter are lower than the same period last year by $8.1 million or 96.7 percent mainly due to the prior period recognition of a $7.5 million reduction in Irvine Ranch Water District's equity interest in the treatment plant as a result of the decrease in their sewage flows, and a current period reversal of $1.5 million from the prior year- end accrual for projects that have been placed in service during the year. Projects that are placed in service are accrued and depreciated at year-end and reversed in the beginning of the following year. It is estimated that the capital assessments will be below budget at year-end. • Revenues — Capital Facilities, Capacity Charges (CFCC) — CFCC are at $12.3 million, or 108.7 percent of the $11.4 million budget. The revenues through the third quarter are higher than the same period last year by $3.6 million or 40.7 percent due to an increase in construction activity in the current year. These revenues are expected to exceed the budget at year-end. • Revenues — Interest Earnings — Interest Earnings are at $5.4 million or 40.9 percent of the $13.1 million budget. The revenues through the third quarter are Section 1 - Page 4 Budget Review Summary lower than the proportionate budget due to the total return of the Sanitation District's liquid and long-term operating investments being less than what was anticipated. The revenues through the third quarter are higher than the same period last year by $2.3 million or 75.7 percent due to an increase in current year investment earnings. It is estimated that the interest earnings will be below the budget amount at year-end. • Revenues — Wastehauler — Wastehauler revenues are at $594,000 or 90.0 percent of the $660,000 budget. This revenue is derived from fees charged to wastehaulers allowing them to dump waste into the Sanitation District's system. These revenues are expected to exceed budget at year-end. • Revenues — CNG Sales — CNG Sales revenues are at $308,000 or 93.0 percent of the $331,000 budget. The revenues through the third quarter are higher than the same period last year by $66,000 or 27.3 percent due to the compressed natural gas (CNG) fueling station located at the front entrance of Plant No. 1 being shut down in the prior year for 3 months from mid-August to November 2013 while gas lines were rerouted for the Sludge Dewatering and Odor Control Project (Project No. P1-101). These revenues are expected to exceed budget at year-end. • Revenues - Other — Other non-operating revenues are at $1.2 million or 282.0 percent of the $410,000 budget. These revenues consist of charges to Sunset Beach Sanitary District for treatment of flows and other miscellaneous revenues. The revenues through the third quarter are higher than the same period last year by $428,000 or 58.9 percent due to sale of AQMD emission reduction credits for $690,000, compared to $345,000 in the prior period. These revenues are expected to exceed budget at year-end. Section 1 - Page 5 FY 2014-15 Third Quarter Report Comparison of Third Quarter Cost per Million Gallon Results with Budget Last Five Years I I 2,075 2,000 2081 1,925 eui zoos 1,850 y9W 1.�6 1926 1,775 1 ea1 1,700 1,625 1,550 1,475 1,400 1,325 ,250 1,175 1,100 1,025 950 875 800 725 650 575 10-11 11-12 12-13 13-14 14-15 3rd! Annual 3rd Annual 3rd Annual 3rd Annual 3rd Annual Qtr Budget Qtr Budget Qtr Budget Qtr Budget Qtr Budget As demonstrated in the preceding graph for each of the last four fiscal years, the cost per million gallons at the end of the third quarter has been 2.0 percent to 8.4 percent lower than the annual budget. The FY 2014-15 third quarter, although higher than previous years, continues with this trend with 3.1 percent lower when compared with this year's budget. Staff believes that overall operating costs will be below budget at year-end. The total cost per million gallons at March 31 is $2,024.8 based on flows of 189.4 million gallons per day. This is $64.2 per million gallons, or 3.1 percent, lower than the budgeted cost per million gallons of $2,089. There is an inverse relationship between the amount of flows and the cost per unit of collection, treatment, and disposal. Consequently, the lower cost per million gallons is due to net expenses being 8.1 percent less than the proportionate budget through March 31, which is partially offset by flows of 189.4 million gallons per day being 5.3 percent lower than the budgeted flow of 200 million gallons per day. More detailed information on operating revenues, costs, and related information is provided within Section 2. Section 1 - Page 6 Budget Review Summary Following are data tables showing the last five years of Single Family Residential User Fees (SFR) and the cost per MG to collect, treat, and dispose of wastewater for OCSD and for similar agencies. The agencies used in the table were determined to be those that most closely resembled OCSD in terms of services provided and treatment levels. The summaries demonstrate that OCSD's SFR and cost per million gallons are each one of the lowest in their respective group. Benchmark Study Five-Year Single Family Rate Rates as of July 2010 2011 2012 2013 2014 Agency SFR SFR SFR SFR SFR Notes San Francisco $613.44 $636.00 $667.92 $701.40 $ 744.83 City of San Diego $608.04 $608.04 $572.58 $572.58 $ 572.58 Vallejo Sanitation/Flood Control District $464.52 $483.12 $495.12 $507.48 $ 520.20 Central Contra Costa Sanitary District $311.00 $341.00 $371.00 $405.00 $ 439.00 City of Los Angeles $359.64 $358.66 $391.56 $409.20 $ 435.40 Note 1 Dublin San Ramon Services District $299.46 $345.06 $355.44 $355.44 $ 372.96 East Bay MUD $271.84 $287.98 $305.10 $331.10 $ 358.14 Union Sanitary District $289.84 $304.33 $319.55 $337.76 $ 357.02 Sacramento County $240.00 $264.00 $288.00 $312.00 $ 348.00 City of Hayward $308.40 $317.64 $327.24 $327.24 $ 337.08 Orange County Sanitation District $244.00 $267.00 $294.00 $308.00 $ 316.00 City of Fresno $299.76 $299.76 $309.00 $309.00 $ 309.00 Irvine Ranch Water District $199.80 $202.80 $206.40 $220.80 $ 246.00 Note 2 Los Angeles County $141.00 $143.00 $149.00 $230.00 $ 245.00 Oro Loma Sanitary District $178.00 $183.00 $189.00 $195.00 $ 200.00 Notes: (1)-Data is for the typical SFR customer rate and is not the average rate. (2)-Data represents the maximum SFR rate and is not the average rate. Section 1 - Page 7 FY 2014-15 Third Quarter Report Benchmark Study Five-Year Cost per MG FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 Agency Sw. Td. Cost/MG Cost/MG CostiMG Cost/MG Cost/MG Notes Vallejo Sanitation/Flood Control District B 3 $4,911.00 $4,536.00 $5,176.00 $5,435.00 $6,153.00 Central Contra Costa Sanitary District B 4 $4,136.89 $3,929.80 $4,203.43 54,621.84 $5,778.43 San Francisco B 3 $4.339.32 $3,857.80 $4,778.96 $5,006.74 $5,400.28 Note 3 Union Sanitary District B 3 $2,964.94 $3,206.10 $3,267.06 $3,805.40 $3,832.47 City of San Diego B 2 $3,583.70 $3,208.48 $3,242.30 $3,340.35 $3,156.43 Note 5 East Bay MUD T 4 $1,856.65 $2,000.31 $2,320.02 $2,359.40 $2,559.18 Dublin San Ramon Services District B 3 $1,905.99 $1,964.64 $2,009.57 $2,159.49 $2,506.60 Sacramento County T 3 $1,638.91 $1,591.75 $3,312.50 $2,143.16 $2,375.47 Note City of Los Angeles B 4 $1,880.00 $1,836.00 $1,935.00 $2,062.00 $2,163.00 Note 1 Orange County Sanitation District B 3 $1,588.72 $1,816.62 $1,871.47 $1,906.01 $1,935.05 City of Fresno B 3 $1,207.20 $1,263.50 $1,383.60 $1,411.89 $1,552.39 Inure Ranch Water District $1,962.02 WA N/A N/A WA Note 4 Los Angeles County $1,117.00 $1,078.00 $1,156.00 $1,008.00 N/A Note 2 Legend for Serdce Prouded and Treatment Lecel: B-Agency operates both collection and treatment facilities T-Agency promdes treatment services but not collection 2-Advanced primary or primary with some secondary treatment 3-Secondary treatment 4-Advanced secondary or secondary with some tertiary treatment Notes: (1)-In FY 2003-04 the City applied Engineers and Architects Association(EAA)COLA.which covered multiple years. (2)-Does not include source control or overhead costs. (3)-New dataset represents wastewater lows from finalized publicly available audited documents. (4)-Cost of Wastewater Treatment including Collectons,Treatment,and General/Administrative Costs minus reclaimed water a)Penses. (5)-Beginning in Fiscal Year 2008-09,cost per mg includes the Point Loma Wastewater Treatment Plant and South Bay Water Reclamation Plant. (6)-Miles of sewers number changed in 2012 0 include parallel force main pipes per the 2011 State of the District Report N/A-Not currently available. Section 1 - Page 8 Budget Review Summary Capital Outlay Review: $200,000,000 $150,000,000 $100.000,000 $50,000,000 $0 3/31115 Adual Projected 2014-15 2014-15 Capital Outlay CapMal Outlay Capital Outlay Cashflm Budget $106,748,725 $153.767,400 $169,223,000 As depicted by the preceding chart, Capital Outlays totaled $106.7 million or 63.1 percent of the capital outlay cash flow budget for FY 2014-15 as of March 31, 2015. Costs are proportionately low through the third quarter as some projects are still in the design phase or have experienced various delays. Examples as of March 31 are the Sludge Dewatering and Odor Control at Plant 1 which has a FY14-15 cash flow budget of $61.1 million but actual costs of only $40.6 million and the Title 24 Access Compliance and Building Rehabilitation Project, which has a budget of $4.8 million but actual costs of only $1.3 million. Overall, the capital outlay costs of the capital improvement program are expected to approximate $153.8 million, or 90.9 percent of the capital outlay cash flow budget at year-end. More detailed information on the capital improvement program is provided within Section 3. Capital Assets Schedule & Debt Service Budget Review: Section 4 is the Capital Assets Schedule and Debt Service Section. This section shows the cost value of the Sanitation District's capital facilities at March 31, 2015, as well as the debt service costs resulting from the need to provide funding for the construction of capital facilities. Except for the 2013A Certificate of Anticipation Notes (CANS) refunded in October 2014, the majority of principal payments on debt issues are due in August during the third quarter, and in February during the third quarter of each fiscal year. As of March 31, 2014, 100 percent of the principal payments have been made through the end of the third quarter. Total principal payments are expected to approximate budget at year-end. Interest costs are expensed ratably throughout the fiscal year. Interest expense is anticipated to approximate budget at year-end. Section 1 - Page 9 FY 2014-15 Third Quarter Report Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through March 31, the Self-Insurance Fund revenues totaled $955,000 or 74.6 percent of the budget, while expenses were $1.7 million or 77.7 percent of the budget. Separate fund accounting is used for recording the revenue and expenses incurred in managing these liability claims. The revenues to these funds represent charges to operating divisions. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. Section 1 - Page 10 Operating Budget Review Cost per Million Gallons by Department Budget and Actual March 31, 2015 $1 300 $uoo $1,100 $1,000 $eoo $eoo $700 $500 $500 $aoo $300 $200 $100 $0 E E — z — E w � �autlget �Adual Collection,Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) March 31, 2015 $65,000 $60,000 $56,000 $50,000 U5,000 $a0,000 $36,000 $30,000 $26,000 $20,000 $15,000 $10,000 $5.000 $Q ✓� E g' m C m �autlBet �Aclual O Section 2-Page 1 2014-15 Third Quarter Report Divisional Contributions to Cost Per Million Gallons For the Nine Months Ended March 31,2015 2014-15 3/31113 3/31114 Annual 3131115 Actual Actual Budget Actual Flow In Million Gallons 54,812.00 54,358.30 73,000.00 51,892.77 Flow in Million Gallons per Day 200.04 198.39 200.00 189.39 Executive Management Department General Management Administration $ 24.43 $ 31.88 $ 36.56 $ 23.51 Board Services 8.00 8.69 9.11 8.21 Public Affairs 12.47 7.65 10.93 8.59 Subtotal 44.90 48.22 56.60 40.31 Human Resources Department Human Resources 51.12 48.85 65.10 55.05 Subtotal 51.12 48.85 65.10 55.05 Administrative Services Department Administrative Services 8.79 9.09 9.28 9.64 Financial Management 43.54 39.17 51.09 44.46 Contracts, Purchasing,&Materials Mgmt. 55.50 58.29 61.96 62.09 Information Technology 126.60 127.01 142.35 150.99 Risk Management 50.82 49.86 53.90 48.81 Subtotal 285.25 283.42 318.58 315.99 Facilities Support Services Department Facilities Support Administration 8.23 8.95 9.71 10.56 Facilities Support 8.52 6.83 6.72 5.85 Equipment Rebuild 21.19 16.53 22.62 17.94 Fleet Services 24.59 25.19 27.37 29.35 Facilities Engineering&Repair Services 72.49 45.23 53.04 40.07 NPDES Source Inspection 34.56 36.86 36.17 31.94 Odor and Corrosion Control 90.63 90.22 98.28 100.52 Collection Facilities O&M 52.39 48.51 55.33 57.70 Subtotal 312.60 278.32 309.24 293.93 Engineering Department Engineering Administration 6.38 5.99 5.69 9.88 Planning 41.12 49.13 50.17 42.90 Project Management Office 46.78 46.81 49.03 51.81 Engineering and Construction 120.39 120.92 125.29 128.08 Environmental Compliance 93.40 92.99 92.97 103.89 Subtotal 308.07 315.84 323.15 336.56 Operations&Maintenance Department Operations&Maintenance Administration 15.76 11.43 12.55 10.48 Plant No.1 Operations 339.16 345.64 362.96 384.16 Plant No.2 Operations 287.24 289.94 310.58 294.17 Building,Grounds&Mechanical Maintenance 165.12 182.84 230.03 203.51 Instrumentation&Electrical Maintenance 191.64 201.11 216.73 209.72 Environmental Laboratory&Ocean Monitoring 109.37 106.72 112.82 116.00 Subtotal 1,108.29 1,137.68 1,245.67 1,218.04 Total Operating Expenses 2,110.23 2,112.33 2,318.34 2,259.88 Cost Allocation (205.61) (185.94) (229.34) (235.06) Net Operating Requirements $ 1,9 44.62 $ 1,926.39 $ 2,089.00 $ 2,024.82 Section 2-Page 2 Operating Budget Review Comparison of Expenses by Department For the Nine Months Ended March 31,2015 2014-15 3/31113 3131/14 Year to Date Budget% Department and Division Actual Actual Budget 3/31/15 Realized Executive Management Department General Management Administration $ 1,339,178 $ 1,732,860 $ 2,669,070 $ 1,220,179 45.72% Board Services 438,715 472,493 665,220 426,090 64.05% Public Affairs 683,562 415,675 798,200 445,732 55.84% Subtotal 2,461,455 2,621,028 4,132,490 2,092,001 50.62% Human Resources Department Human Resources 2,801,930 2,655,630 4,752,630 2,856,736 60.11% Subtotal 2,801,930 2,655,630 4,752,630 2,856,736 60.11% Administrative Services Department Administrative Services 481,647 494,345 677,510 500,062 73.81% Financial Management 2,386,501 2,129,032 3,729,300 2,307,149 61.87% Contracts, Purchasing,&Materials Mgmt. 3,042,051 3,168,754 4,523,100 3,222.169 71.24% Information Technology 6,939,438 6,903,862 10,391,490 7,835,083 75.40% Risk Management 2,785,721 2,710,300 3,934,910 2,532,910 64.37% Subtotal 15,635,358 15,406,293 23,256,310 16,397,373 70.51% Facilities Support Services Department Facilities Support Administration 451,360 486,761 709,130 547,868 77.26% Facilities Support 467,045 371,438 490,790 303,532 61.85% Equipment Rebuild 1,161,213 898,753 1,651,440 930,925 56.37% Fleet Services 1,348,071 1,369,540 1.997,800 1,523.297 76.25% Facilities Engineering&Repair Services 3,973,457 2,458,572 3,871,880 2,079,232 53.70% NPDES Source Inspection 1,894,369 2,003,911 2,640,360 1,657,580 62.78% Odor and Corrosion Control 4,967,610 4,904,150 7,174,480 5,216,353 72.71% Collection Facilities O&M 2,871,376 2,637,060 4.039,300 2,994.449 74.13% Subtotal 17,134,501 15,130,185 22,575,180 15,253.236 67.57% Engineering Department Engineering Administration 349,941 325,849 415,210 512,848 123.52% Planning 2,254,013 2,670,700 3,662,170 2,226,241 60.79% Project Management Office 2,563,997 2,544,325 3,579,510 2,688,734 75.11% Engineering and Construction 6,598,849 6,573.064 9,146,430 6,646,556 72.67% Environmental Compliance 5,119,190 5,054,855 6,787,090 5,391,390 79.44% Subtotal 16,885,990 17,168,793 23,590,410 17,465,769 74.04% Operations&Maintenance Department Operations&Maintenance Administration 863,744 621,267 916,210 543,765 59.35% Plant No.l Operations 18,590,072 18,788,343 26,496,250 19,934,989 75.24% Plant No.2 Operations 15,744,185 15,760,824 22,671,990 15,265,251 67.33% Building,Grounds&Mechanical Maintenance 9,050,430 9,938,616 16,792,130 10,560,783 62.89% Instrumentation&Electrical Maintenance 10,504.017 10,932.195 15,821,250 10,883,106 68.79% Environmental Laboratory&Ocean Monitoring 5,994,796 5,800,639 8,235,970 6,019,195 73.08% Subtotal 60,747,244 61,841,884 90,933,800 63,207,089 69.51% Total Operating Expenses 115,666,478 114,823,813 169,240,820 117,272,204 69.29% Cost Allocation (11,269,438) (10,108.348) (16,740,700) (12,198,701) 72.87% Net Operating Requirements $ 104,397,040 $ 104,715,465 $ 152,500,120 $ 105,073,503 68.90% Section 2-Page 3 2014-15 Third Quarter Report Summary of Collection, Treatment, &Disposal Expenses by Major Category For the Nine Months Ended March 31,2015 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2014-15 3131/15 3131114 $ % Realized Budget Salary&Wages $ 63,460,100 47,450,189 46.753,001 $ 697,188 1.49% 74.77% $ 16.009,911 Employee Benefits 35,708,700 23,161,716 22,604,281 557,435 2.47% 64.86% 12,546,984 Administrative Expenses 1,399,220 1,165.141 890,747 274,394 30.80% 83.27% 234,079 Printing&Publication 409,040 202,106 218,389 (16,283) -7.46% 49.41% 206,934 Training&Meetings 1,041,710 475.342 543,657 (68.315) -12.57% 45.63% 566,368 Operating Materials&Supplies 15,829,650 11,488,670 11,423,095 65,575 0.57% 72.58% 4,340,980 Contractual Services 24,335,170 15,933,325 16,439,190 (505,865) -3.08% 65.47% 8,401,845 Professional Services 3,225,370 1,782,916 2,015,285 (232,369) -11.53% 55.28% 1,442,454 Research&Monitoring 830,000 617,725 578,882 38,843 6.71% 74.42% 212,275 Repairs&Maintenance 13,063,210 8,144,843 6,786,056 1,358,787 20.02% 62.35% 4,918,367 Utilities 7,437,770 5,497,926 4,970,290 527,636 10.62% 73.92% 1,939,844 Other Materials,Supplies, and Services 2,500,880 1,352,305 1,600,940 (248,635) -15.53% 54.07% 1,148,575 Net Cost Allocation (16,740,700) (12,198,701) (10,108,348) (2,090,353) 20.68% 72.87% (4,541,999) Net Operating Requirements 152,500,120 105,073,503 104,715,465 358,038 0.34% 68.90% 47,426,617 Gallonage Flow(MG) 73,000.00 51,892.77 54,358.30 (2,465.53) -4.54 Gallonage Flow(MGD) 200.00 189.39 198.39 (9.00) -4.54 Gallonage Flow($'a/MG) $2,089.00 $2,024.82 $1,926.39 $98.43 5.11% Section 2-Page 4 Operating Budget Review Summary of Revenues For the Nine Months Ended March 31, 2015 Revenue Percent Revenue Increase Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 2014-15 3131/15 Realized Budget 3131114 $ % Service Fees $288,946,000 $168,811,060 58.42% $120,134,940 $170,565,648 $ (1,754,588) .1.03% Permit Fees 13,684,000 9,260,644 67.67% 4,423,356 9,525,964 (265,320) -2.79% Inter District Sewer UseSAWPA 2,529.000 1,772,265 70.08% 756.735 1,776,531 (4,266) .0.24% Intra District Sewer Use-IRWD 2,302,140 1,790,660 77.78% 511,480 1,523,183 267,477 17.56% Sludge Disposal-IRWD 8,394,000 5,805,375 69.16% 2.588,625 3,541,293 2,264,082 63.93% Capital Assessments-IRWD 3,469,000 279,516 8.06% 3,189,484 8,419,935 (8,140,419) -96.68% Capital Facilities Capacity Charges 11.355.000 12,348,274 108.75% (993,274) 8,777.897 3.570,377 40.67% Debt Proceeds - 388,839,964 N/A NIA 131,991,953 256,848,011 194.59% Property Tams 77.733.000 48,384,825 62.24% 29,348,175 44,697,515 3.687,310 8.25% Interest Earnings 13,143,000 5,374,154 40.89% 7,768,846 3,059,623 2,314,531 75.65% Wastehauler 660,000 593,723 89.96% 66,277 492.131 101,592 20.64% CNG Sales 331,000 307,972 93.04% 23,028 241,892 66,080 27.32% Rents B Leases 251,000 188,448 75.08% 62,552 184,798 3,650 1.98% Other 410,000 1,156,266 282.02% (746,266) 727,796 428,470 58.87% Power Sales 4,000 11,254 281.35% (7,254) 2,755 8,499 308.49% Other Sales 9,000 23,727 263.63% (14,727) 4,297 19,430 452.18% Total Revenues $423,220,140 $ 644,948,127 152.39% $ 167,111,977 $385,533,211 $ 259,414,916 67,29% Section 2-Page 5 2014-15 Third Quarter Report Summary of Collection,Treatment, &Disposal Expenses by Line Item For the Nine Months Ended March 31, 2015 Expense Percent Expense humesee Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 201415 3131115 Expensed Budget 3/31/14 $ % Salaries.Wanes&Benefits Salaries&Wages $ 63,460,100 $ 47,450,189 74.77% $ 16,009,911 $ 46,753,001 $ 697,188 1.49% Employee Benefits Retirement 25,398,200 15,587,735 61.37% 9,810,465 15,553,480 34,255 0.22% Group Insurances 8,965,000 6,587,651 73.48% 2,377,349 6,324,774 262,81T 4.16% Tuition&Certification Relmb 173,400 117,654 67.85% 55,746 122,649 (4,995) 4.07% Edu,degrees,Cad.&Lid. 295.800 224,628 75,94% 71.172 214,145 10,483 4.90% Uniform Rental 54,100 38,429 71.03% 15,671 40,232 (1,803) -0.48% Workers'Compensation 755,000 566,251 75.00% 188,749 303,332 262,919 86.68% UnemplovmentInsurance 60,100 9,783 16.28% 5Q317 40.220 (30,437) -75.68% EMT Supplemental Benefits 7,100 29,585 416,69% (22,485) 51449 24,136 442.94% Total Benefits 35,708,700 23,161,716 64.86% 12,546,984 22,604,281 557,435 2.47% Salaries,Wages&Benefits 99,168,800 70,611,905 71.20% 28,556,895 69,357,282 1,254,623 1.81% Matt,Supply.&Services Administrative Expenses Memberships 576,240 472,707 82.03% 103,533 447,416 25,291 5.65% Office Exp-Supplies 67,840 36,255 53.44% 31.585 40.176 (3,921) -9.76% Postage 38,570 27,281 70.73% 11,289 21,818 5,463 25.04% Books&Publications 40,600 18,979 46.75% 21,621 21,560 (2,581) -11.97% Fortes 690 1,216 136.63% (326) 615 601 9]]2% Small Computer Items 550,000 531,673 96,67% 18,327 311,394 220,279 70.74% Minor Furniture&Fixtures 125,080 77,030 61.58% 48,050 47,768 29,262 61.26% Subtotal 1.399,220 1,165,141 83.27% 234,079 890,747 274,394 30.80% Printing&Publication Repro-In-House 357,340 172,594 48.30% 184,746 174,147 (1,553) -0.89% Printing-Outside 26,330 17,547 66.64% 8,783 22,132 (4,685) -20.72% Notices&Ads 25,110 11,891 47.36% 13,219 21,976 (10,085) 45.89% Photo Processing 260 74 28,46% 186 134 (60) Subtotal 409,040 202,106 49.41% 206,934 218,389 (16,283) -].46% Training&Meetings Meetings 189,970 90,221 47,49% 99,749 100,948 (10,727) -10,63% Training 851,740 385,121 45.22% 466,619 442,709 (57,588) -13.01% Subtotal 1,041,710 475,342 45.63% 566,368 543,657 (68,315) -12.57% Operating Mat1s&Supplies Chemical Coagulants 5,785,000 4,388,520 75.87% 1,396,180 4,318,511 70,309 1.63% Odor Control 7,056,600 6,305,244 75.18% 1,751,356 5,O70,168 235,076 4.64% Disinfection 425,000 235,287 55.36% 189,713 229,894 5,393 2.35% Chemicals-Mies&Cogan 68.000 18,376 2T,02% 49,624 29,934 (11,558) -38.61% Gasoline,Diesel&Oil 665,800 395,276 59.37% 270,524 412,543 (17,267) -0.19% Tools 408,520 224,764 55.02% 183,756 247,022 (22,258) .9.01% Safety equipment/tools 461,440 331,865 71.92% 129,575 521,733 (189,888) -36.39% Soly.Paints&Jan.Supplies 90,610 64,821 71,54% 25,789 61,106 3,715 6.08% Lab Chemicals&Supplies 690,770 425,573 61.61% 265,197 439,637 (14,064) -3.20% Other Opedung Supplies 161,220 98,644 61.19% 62,576 106,090 (7,446) -7.02% Property Tax Fees 16,690 0.00% 16,690 (13,543) 13,543 -100.00% Subtotal 15.829,650 11,488,670 72,58% 4.340,980 11.423,095 65,575 0.57% Contractual Services Solids Removal 18,321,850 12,922,210 70.53% 5,399,"0 13,043,381 (121,171) -0.93% Other Waste Disposal 831,450 757,625 91,12% 73,825 609,941 147,684 24,21% Groundskeeping 170,000 115,173 67.75% 54,827 151,768 (36,695) -24.11% Janitorial 459,940 362,485 78.81% 97,455 345,214 17,271 5.00% Outside Lab Services 239,400 134232 56.07% 105,168 154,770 (20,538) -13.27% Oxygen Plant Oper 719.000 390,560 54.32% 328.440 499.077 (108,517) -21.74% County Service Fee 686,360 54,270 7.91% 632,090 57,494 (3,224) -5.61% Temporary Sennces t82,990 230,734 47.77% 252,256 226,668 4,066 1.79% Security Services 843,000 284264 33.72% 558,736 293,731 (9,467) -3.22% Other 1,581,180 681,772 43,12% 899,408 1,057,146 (375,374) Subtotal 24,335,170 15,933,325 65.47% 8,401,845 16,439,190 (505,865) (Continued) Section 2-Page 6 Operating Budget Review Summary of Expenses by Line Item For the Nine Months Ended March 31,2015 Expense Percent Expense Increase Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 201d-15 3/$1/15 Expensed Budget =1114 $ % Continued: Professional Services Legal 840,400 779,271 9273% 61,129 1,063,961 (284,690) -26.76% Audit&Accounting 224,650 127,427 56.72% 97,223 144,508 (17,081) -11.82% Engineering 595,000 77,339 13.00% 517,661 196,924 (119,585) 50.73% Erwin,Scientific Consulting 67,500 130,085 192.72% (62,585) 28,610 101,475 354.68% Software Prgm Consulting 420,000 216,885 51.64% 203,115 210,844 6,041 2.87% Advocacy Efforts 187,000 130,628 69.85% 56,372 113,883 16,745 1470% Industrial Hygiene Services 50,000 51,209 102.42% (1,209) 23,881 27,328 114.43% Labor Negotiation Services 119,080 30,303 25.45% 88,7]] 39,710 (9,407) -23.69% Other 721,740 239,769 33.22% 481,971 192,964 46,805 24.26% Subtotal 3,225.370 1,782,916 55.28% 1,462,454 2.015,285 (232,369) -11.53% Research&Monitoring Environmental Monitoring 340,000 237,606 69S8% 102,394 203,284 34,322 16.88% Air Quality Monitoring 85,000 80,119 94.26% 4,881 70,598 9,521 13.49% Research 405,000 3001000 74.07% 105,000 305,000 (5,0m) -1.64% Subtotal 830,000 617,725 74.42% 212,275 578,882 3SW 6.71% Repairs&Maintenance Materials&Services 11,111,070 6,557,654 59.02% 4,553,416 5.606,118 951,536 16.97% Svc.Mto Agreements 1,952,140 1,587,189 81.31% 364,951 1,179,938 407,251 34.51% Subtotal 13,063,210 8,144,843 62.35% 4,9lsH7 6,786,056 1,358,787 20.02% OSlities Telephone 320,000 232,454 72.64% 67,546 185,773 46,601 25.13% Diesel For Generators 23,230 14,435 62A4% 8,795 11,910 2,625 21.20% Natural Gas 4D0,500 469,668 117.27% (69,168) 339,428 130,240 38.37% Power 61003.200 4,382,833 73.01% 1,620,M7 3.847,593 535,240 13.91% Water 690,840 398,536 57.69% 292,304 585,586 (187,050) Subtotal 7,437,770 5,497,926 73.92% 1,939,844 4,970,290 527,636 10.62% Other Operating Supplies Outside Equip Rental 7,330 105,771 1442.99% (98,441) 4,847 100,924 2082.20% Insurance Premiums 32,000 31,884 99.64% 116 31,862 22 0.07% Prop&Gen Liab Insurance 500,000 375,003 75.00% 124,997 681,750 (306,747) 44.99% Freight 60,120 46,412 77.20% 13,708 47,713 (1,301) -2.73% Misc.Opeodng Expense 254,290 122,520 48.18% 131,770 130,197 (7,67]) 5.90% Regulatory Operating Fees 688,000 626,344 91.04% 61,656 665,722 (39,378) .5.92% Subtotal 1,541,740 1,307,934 84.83% 233,806 1,562,091 (254,157) -16.21% General Mgr Contingency &Reappropriations 885,000 0.00% 885,000 N/A Other Non-Oper Expense Others 74,140 44,371 59.85% 29,769 38,849 5,522 14.21% Subtotal 74,140 44,371 59.85% 29,769 38,849 5,522 14.21% Total Materials, Supplies&Services 70,072,020 46,660,299 66.59% 23,411,721 45,466,531 1,193,768 2.63% Total Expenditures 169,240,820 117,272,204 IN29% 51,968,616 114,823,813 2,448,391 2.13% Cost Allocation (16,740,700) (12,198,701) 72.87% (4,541,999) (10,108,348) (2,090,353) 20.68% Net Operating Requirements $ 152.500.120 $ 105,073,503 68.90% $ 47,426.617 $ 104715,465 $ 358,038 0,34% Section 2-Page 7 2014-15 Third Quarter Report Summary of Collection, Treatment,8 Disposal Expenses by Process For the Nine Months Ended March 31,2015 Increase Increase Actual Actual (Decrease) (Decrease) 3/31/15 3/31/14 $ % Process- Preliminary Treatment $ 6,316,429 $ 6,515,509 $ (199,080) -3.06% Primary Treatment 9,727,065 9,591,555 135,510 1,41% Secondary Treatment 5,976,942 6,573,923 (596,980) -9.08% Cryogenic Plant(Plant 2) 774,594 1,056,358 (281,764) -26.67% Ef0uent Disposal 591,287 537,063 54,225 10.10% Solids Handling 35,606,759 34,964,431 642,327 1,84% Cogeneration 10,026,823 10,166,746 (139,923) -1.38% Utilities 2,172,279 2,238,219 (65,940) -2,95% Electrical Distribution 1,489,979 1,793,184 (303,205) -16.91% Miscellaneous Buildings 5,703,947 5,328,420 375,527 7.05% External Location 51,936 1,722 50,214 2915.79% Nerissa Vessel 271,203 21,361 249,842 1169.62% North County Yard 1,983 11 1,972 17931.00% Laboratory 9,392,544 9,257,763 134,781 1.46% Collections 16,969,731 16,669,200 300,532 1.80% Net Operating Requirements $ 105,073,503 $ 104,715,465 $ 358,039 0.34% Section 2-Page 8 Operating Budget Review Staffing Trends Full Time Equivalents March 31, 2015 700 650 641 637 628 626 626 50 qy 600 550 500 450 6/30111 6/30/12 6/30/13 6130114 3/31/15 DActual DVa.a t At March 31, 2015, the total head count was 581 employees, or a full time equivalency of 575. Section 2-Page 9 2014-15 Third Quarter Report This Page Intentionally Left Blank Section 2- Page 10 CIP Budget Review Capital Improvement Program By Type and Funding Source For the Nine Months Ended March 31, 2015 1•Collectlons Facllides: 21.7% 1111HaaEwwks: 08% \ lillPflmary TreaOnent 1.2% oSecandary Treatment 0.6% 115olid.Handling 8 Digestion: 51 7% oodean outlall Systems'. 04% oD4lity Systems: 143% lillPaccess Related Special Projects: 1.0% illInfamlatlon Management Systems: 1.9% EnStrategic 8 Master Planning: 0.0% Water Management Projects: 0.1% liSupp it Facilities: 5.6% •Pdor Year Treatment Projects: 0.0% MCapilal Equipment Purchases: 0.7% Total Capital Improvement Outlays-$106,748,725 ReplacemenVRehabilitation: 45% Improved Treatment: 41% ❑Additional Capacity: 10% ■Support: 4% Total Capital Improvement Outlays-$106,748,725 Section 3- Page 1 FY 2014-15 Third Quarter Report Summary of Capital Improvement Construction Requirements-Current Year For the Nine Months Ended March 31,2015 2014-15 2014-15 2014-15 Clearing. Actual at Projected Budget 3/31/2015 Outlay Collection Svstem Improvement Pro Collections Facilities Santa Ana Trunk Sewer Rehab. $ 3,359,755 $ 410,432 $ 2,837,400 SARI Realignment 405,332 158,133 412,000 SARI Rock Stabilizers Removal 211,746 26,410 144,700 Newhope-Placentia Trunk Gretle Separation Replacement 3,396,918 1,261 4,237,500 Newhope-Placentia Trunk Replacement 385,216 792,539 1,517,300 Lakeview Gratle Separation Project 283,853 60,256 311,300 Tustin Rose DICTA Grade Separation Project 452,914 70,905 78,900 Orangethorpe DICTA Gretle Separation Project 719,552 14,214 14,300 Rehabilitation of Magnolia Trunk Sewer - (79,892) (79,900) Seal Beach Pumping Station Rehabilitation 663,829 128,347 652,600 Rehabilitation of Western Regional Sewers - 71,336 1,042,100 Rehabilitation of Balboa Trunk Sewer 2,551,550 60,155 101,700 Bitter Point Force Main Rehabilitation 410,577 136,993 217,000 Newport Force Main Rehabilitation 20,079,397 16,322,060 21,210,400 Dover Drive Trunk Sewer Relief 4,639,536 2,263,M4 2,348,600 District 6 Trunk Sewer Relief 720,854 223,W9 338,300 Southwest Costa Mesa Trunk 436,125 127,716 313,900 Gisler-Redhill Trunk Improvements,Reach B 216,393 435,168 747,600 Master Facilities Engineering Projects-Collections 864,029 184,406 326,100 Bay Bridge Pump Station and Force Mains Rehabilitation Study 381,646 41,198 148,100 Collection System Master Planning 1,W0,000 104,632 104,700 Additional Charges to CIP Closed at 6130114 (11,320) (11,400) Subtotal-Collections Facilities 41,179,222 22,805,801 37,013,200 Revenue Area 14 Bider Point Force Main Rehabilitation(1.65%) 6.888 2,298 3,700 Newport Force Main Rehabilitation(1.88%) 384,726 312,734 406.400 Subtotal-Revenue Area 14 391,614 315,032 410100 Total Collection System Improvement Projects 41,570,836 23,120,833 37,423,300 (Continued) Section 3-Page 2 CIP Budget Review Summary of Capital Improvement Construction Requirements-Current Year For the Nine Months Ended March 31,2015 2014-15 2014-15 2014-15 Cashflow Actual at Projected Budget 3/31/2015 Outlay Treatment a Disposal Protects Headwork, Headwoiks Rehabilitation and Expansion at Plant 1 429,107 261,488 460,700 Truck Line Odor Control Improvements Pi 669,312 483,357 608,600 Headwmlus Improvements at Plant 54.581 MAN Subtotal-Headworks 1,098,419 805,426 1,123,900 Primary Treatment Joint GWRS Microfiltration Backwash Redirection Project 5,219 2,958 3,0W Plant 1 Primary Treatment Upgrades 3,427.951 1,254,662 2,726,800 Plant 2 Primary Treatment System Rehabilitation - - 103,700 Primary Treatment Area Rehabilitation Study 578,376 4,600 Subtotal-Primary Treatment 4.011.546 1,257,620 2.838.100 Secondary Treatment New Secondary Treatment System at Plant No.1 139.159 523,517 570,800 Oxygen Plant Demolition at Plant No.2 1,829,561 68,395 84,000 Plant No.1 Secondary Treatment Asset Management Plan 365,015 - - Plant No.2 Secondary Oxygen Plant Asset Management Plan 93.587 Subtotal-Secondary Treatment 2,427.302 591,972 654,800 Solids Handling&Digestion Digester Rehabilitation at Plant 1 S,uI3,017 4,316,187 6,038,500 Sludge Dewatering and Odor Control at Plant 1 61,050,918 40,56SM2 54,140,900 Digester Fame Chloride System Rehabilitation 320,044 330,327 334,800 Solids Thickening and Processing Upgrades 6,315.445 6,609,324 8.183,900 Sludge Dewatering and Odor Control at Plant 2 1,402,322 3,164,995 4,183,500 Plant 2 DigesterslBoilers Plant Asset Management Plan 355.M3 171.922 235,200 Subtotal-Solids Handling S Digestion 74.887.689 56,161,697 73,116,800 Ocean OuUall Systems Final Effluent Sampler and Building Area Upgrades 488,290 334,328 528,100 Oudall Land Section and OOBS Piping Rehabilitation 52,619 18,960 19,000 Ocean Outiall System Rehabilitation 713.223 192,629 464.800 Subtotal-Ocean OuHall Systems 1,254,392 545.937 1,011,900 Utility Systems Cengen Cooling Water System Replacement 284.249 63,506 63,600 Cengen Emissions Control Project 6,988,246 9,208,653 11,229,000 Power Monitoring and Control Systems 286,319 283,744 391,300 Plant Water System Rehabilitation at Plant No.1 2,501,914 2,133.573 3,129,300 Plant Water System Rehabilitation at Plant No.2 2,323,394 1,970,398 2,664,700 Boiler System Rehab 8 Scrubbers H 8 I Demolition at Plant 2 1,744,766 1,W,M2 1,697,900 Consolidated Demolition&Utility Improvements at Plant 2 227,821 269,057 479,400 Digester Gas Facilities Study for Plants 152 314.397 257,041 257,100 Utility Water Systems Study 8001000 - - Plant Air System Master Plan 147,626 - - Electrical System Base Map 250.000 Subtotal-Utility Systems 1SH8.732 15.234.474 19.912.300 (Continued) Section 3-Page 3 FY 2014-15 Third Quarter Report Summary of Capital Improvement Construction Requirements-Current Year For the Nine Months Ended March 31,2015 201415 2014-15 2014-15 Cashfl. Actual at Projected Budget 3/31/2015 Outlay Process Related Special Projects Fall Protection Improvements at Plants Nos.I and 50,436 1,224 1,300 Corrosion Management 2,000,166 888,953 1,249,600 Odor Control Master Plan 741,412 160.678 182.400 Subtotal-Process Related Special Projects 2,792,614 1,050,855 1,433,300 Information Management Systems Programmable Control Panel Upgrades 1,689,364 321,445 870,300 Strategic Information Architecture(SIA) 750,222 189,002 275,000 Internglintranet Development 173,372 65,071 86,600 Geographic Information System 365,026 103,683 119,100 Information Technology Equipment Upgrade 600,856 318,456 375,900 EAM Software and Process Implementation 833,913 116,648 966,700 PD82D Software Replacement 126,655 35,400 61,200 Software and Computer Equipment Replacement Project 746,895 254,452 388,100 Information Technology Master Plan 232,042 Subtotal-Information Managemerd Systems 5,518,M5 2,010,157 3,149,500 Strategic&Master Planning Facilities-Wide Safety Assessment 241,481 19,904 20,000 Landscape&Security Master Plan 111.423 - - Stmmwater Master Plan 38,018 - - Treatment Plant Hydraulic Assessment 168,726 18,880 18,900 Asset Management Program 54,661 192 200 Subtotal-Strategic&Master Planning 614.289 38,976 39,100 Water Management Projects Effluent Reuse Study 575,919 153.860 340.400 Subtotal-Water Management Projects 575.919 153,860 340,400 Support Facilities Master Facilities Engineering Projects-Plant 3,T11,179 1,853,525 2,822,700 Master Small Capital ReplacemenURehabilitabon-Plant 4,220,002 382,029 883,500 Operations Canter Entrance/Building Repaire 35,247 - - Title 24 Access Compliance and Building Rehabilitation Project 4,M6,207 1,252,404 3,714,700 South Perimeter Security&Storm Water Improvements at Pi 40,938 65,753 154,800 Site and Security Improvements at Plant No.2 252.000 22,417 22,500 Public Address System Study 100,000 - - Tunnels Systems Asset Management Plan 118,842 -Plant No.2 Administrative Building Master Plan 192,545 - - Administrative Facilities Implementation Planning 662,962 525,042 723,600 Ongoing Small Capital Replacement/Rehabilitation 1,183,658 1,849776 2,078,100 Subtotal-Support Facilities 15,423,580 5,950,946 10,399.900 (Continued) Section 3-Page 4 CIP Budget Review Summary of Capital Improvement Construction Requirements-Current Year For the Nine Months Ended March 31,2015 2014-15 2014-15 2014-15 Cashfloer Actual at Projected Budget 3/31/2015 Outlay Others Future Research Line Item 1,000,381 45,134 139,6011 Capital Improvement Program Mgmt.Services 99,999 39.900 SuMotal-Others 1,100,380 45,134 179.500 Additional Charges to CUP Completed M6130114 5,140 86.000 Total Treatment and Disposal Projects 125,573,207 82,852,194 114.265.500 Capital Equipment Purchases 2.078.600 775,698 2,078,600 Total Collection,Treatment and Disposal Projects and Capital Equipment Purchases $169,222,643 $106,748,725 $ 153,767,400 Section 3-Page 5 FY 2014-15 Third Quarter Report Summary of Capital Improvement Construction Requirements- Project Life For the Nine Months Ended March 31,2015 Current Total Approved June 30,2014 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2015 Budget Collection System Improvement Projects Collections Facilities Santa Ana Trunk Sewer Rehab. 7.676,000 3,154,323 2,837,400 5,991,723 1,664,277 Raiff and Bristol Street Sewer Expansion 10722,000 259,075 - 259,075 10.462,925 SARI Realignment 11,41M,000 5,325711 412.000 5,737,711 5.666,289 SARI Rock Stablllzms Removal 3,092,000 26,666 144700 171,366 2,9201 Taft Branch Improvements 3.143,000 12,083 - 12,083 3,130,917 Newhope-Placentia Trunk Grade Separation Replacement 5,966,000 559,207 4,237.500 4,796707 1,169,293 Newhope-Placentia Trunk Replacement 104,890,000 51,792 1,517.300 1,569,092 103,320,908 Yoffie Linda Pumping Station Abandonment 4,694000 - - - 4,694,000 Coyote Hills Golf Course Odor Control Station 8,365,000 - - - 8.365,000 Lakeview Grade Separation Project 330,000 4,142 311.300 315,442 14,558 Tustin Rose OCTA Grade Separation Project 586,000 36,228 78.900 115,128 470,872 Orangetborpe COLA Grade Separation Project 31900,000 100,028 14.300 114,328 3785,672 Rehabilitation of Magnolia Trunk Sewer 19.812,000 19,647.646 (79.900) 19,567.746 244,254 Miller-Holder Trunk Sewer Relief 17.324,000 - - - 17.324,000 Beach Trunk/Knott Interceptor Sewer Relief 27.599,000 - - - 27,599,000 Seal Beach Pumping Station Rehabilitation 62.041,000 - 652.600 652,600 61,388,400 Rehabilitation of Western Regional Sewers 112.222,000 - 1,042,100 1,D42,100 111,179,900 Rehabilitation of Balboa Trunk Sewer 8,122,000 6,740,612 101700 6,842,312 1,279,688 Biker Point Force Main Rehabilitation 44,866,287 30,783,269 217,000 31,OW,269 13,866,018 Newport Force Main Rehabilitation 51,234,339 6,272,065 21,210,400 27,482.465 23751,874 Dover Drive Tmnk Sewer Relief 14,327,000 10,557.800 2,348,600 12,906,400 1,420,600 Crystal Cava Pumping Station Upgrade and Rehabilitation 7,817,000 - - - 7.817,000 Bay Bridge Pumping Station Rehabilitation 74.431,000 - - - 74.431,000 District 6 Trunk Sewer Relief 7,047,000 671,372 338.300 1,008,672 6.037,328 Southwest Costa Mesa Trunk 14,993,000 1,391745 313.900 1,705.645 13,287,355 Gisler-Redhill Trunk Improvements,Reach B 25,873,000 3,376.438 T4T,600 4,124.038 21,748,962 Browning Subtrunk Sewer Relief 13,439,000 - - - 13,439,000 Von Karman Trunk Sewer Relief 433,000 - - - 433,000 MacArthur Pump Station Rehabilitation 7,445,000 - - - 7.445,000 Main Street Pump Station Rehabilitation 40747,000 - - - 40747,000 EdingedBolsa Chime Trunk Improvements 6.030,000 - - - 6.030,000 Edinger Pumping Station Upgrade and Rehabilitation 13.629,000 - - - 13.629,000 Slater Avenue Pump Station Rehabilitation 13781,000 - - - 13781,000 Master Facilities Engineering Projects-Collections 12,192,000 273,440 326.100 599,540 11.592,460 Bay Bridge Pump Station and Force Mains Rehabilitation Study 522,838 - 148.100 148,100 374,738 Collection System Master Planning 1.000,000 - 104700 104,700 895,300 Collamion System Odor control Systems Study 700,000 - - - 700,000 Additional Charges to CIP Closed at 6130114 (11.400) (11,400) 11,400 Subtotal-Collections Facilities 762,395,464 89,243,642 37,013,200 126,256,842 636,131 Revenue Area 14: Bitter Point Force Main Rehabilitation(165%) 752,714 516,445 3,700 520,145 232,568 Newport Force Main Rehabilitation(1.88%) 981,661 120,174 406,400 526,574 455,087 Subtotal-Revenue Area 14 1,734.374 636,619 410,100 1,046719 687,655 Total Collection System Improvement Projects 764,129,838 89,880,261 37,423,300 127,303,561 636,826,277 (Continued) Section 3-Page 6 CIP Budget Review Summary of Capital Improvement Construction Requirements- Project Life For the Nine Months Ended March 31,2015 Current Total Approved June 30,2014 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2015 Budget Treatment&Disposal Projects Headworks Headworks Rehabilitation and Expansion at Plant 1 76,476,000 23,493 460,700 484,193 75,991,807 Headworks Expansion P1 222,804,000 - - - 222,804,000 Truck Line Odor Control Improvements P1 10.826,000 917.437 608,600 1.526,037 91 Headworks Improvements at Plant 2 258724,000 256,135,521 54,600 258,190,121 533.879 Subtotal-Headworks 568.830,000 259.076,451 1.123,900 260.200,351 308,629,649 Primary Treatment Joint GWRS Microfiltration Backwash Redirection Project 387,000 359.168 3,000 362,168 24,832 Primary Scrubber Rehabilitation at Plant l SQ708,000 - - - 50,708,000 Primary Effluent Pipeline Joint Repairs 3,246,000 - - - 3,246,000 Plant l Primary Treatment Upgrades 11,535,000 1,048737 2,726,800 3,775,537 7,769,463 Plant 2 Primary TreeMent System Rehabilitation 43,210,000 - 103,700 103.700 43,106,300 Primary Treatment Area Rehabilitation Study 848,000 157,161 4,600 161761 686,239 Subtotal-Primary Treatment 109,934,000 1.M5.066 2,838,100 4.403.166 105.530.834 Secontlary Treatment New Secondary Treatment System at Plant No.1 255,771,000 254,397,212 570,800 254,968,012 802,988 Oxygen Plant Demolition at Plant No.2 4,051,000 539,982 84,000 623,982 3,427,018 Plant No.l Secondary Treatment Asset Management Plan 400,000 - - - 400,000 Plant No.2 Secondary Oxygen Plant Asset Management Plan 400.000 400,000 Subtotal-Secondary Treatment 260,622,000 254.937.194 654.800 255.591.994 5,030,006 Solids Handling&Digestion Digester Rehabilitation at Plant l 64,902,000 45,702,099 6,038,500 51,740,599 13,161,401 Sludge Dewatenng and Odor Control at Plant l 171.978.000 48.624,141 54,140,900 102.765.041 69,212,959 Digester Ferric Chloride System Rehabilitation 4,449,000 4,069,536 334,800 4,404,336 44,664 Plant No.2 Solids Storage Addition 37,604,000 - - - 37,604,000 Solids Thickening and Processing Upgmdes d8,M6,000 32,517,589 8,183,900 40,701,489 7,Bd4,511 Plant No.2 Digester Facili4es Rehabilitation 47,600,000 152,343 - 152.343 47,447,657 Sludge Dewaterng and Odor Control at Plant 2 87,000,000 8,899,067 4,183,500 13,082,567 73,917,433 Plant 2 DigestemBoilers Plant Asset Management Plan 800,000 46.456 235,200 281,656 518344 Subtotal-Solitls Handling&Digestion 462S79,000 140.011,231 73,116,800 213J28,031 249,550.969 Ocean Outlall Systems Final Effluent Sampler and Building Area Upgrades 15,973,000 2,540,592 528,100 3,068,692 12,904,308 Oudall Land Section and OOBS Piping Rehabilitation 20,466,000 19,653,161 19,000 19,672.161 793,839 66-inch Interplant Effluent Pipeline Rehabilitation 72,517,000 - - - 72,517,000 Ocean Oufall System Rehabilitation 48,194,000 37,154 464.800 501,954 47.692.046 Subtotal-Ocean Outfall Systems 157J50,000 22.230,907 1,011,900 23.242,807 133,907J93 Utility Systems Cengen Cooling Water System Replacement 11,337,000 11,215,149 63,600 11,278,749 58,251 Conger Emissions Control Project 24,950,000 3,730.169 11.229,000 14,959,169 9,990,831 UPS System Upgrades 3,817,000 - - - 3,817,000 Digester Gas Facilities Rehabilitation 58,755,000 - - - 58,755,000 Electrical Power Disbibution System Improvements 12,791,000 - - - 12791,000 Power Monitoring and Control Systems 10,918,000 10,246,090 391,300 10,637,390 280,610 Plant Water System Rehabilitation at Plant No.1 8,000,000 3,763,229 3,129,300 6,892,529 1,107,471 (Continued) Section 3-Page 7 FY 2014-15 Third Quarter Report Summary of Capital Improvement Construction Requirements- Project Life For the Nine Months Ended March 31,2015 Current Total Approved June 30,2014 Year Projected Remaining Project Accumulated Projected Costal Future Budget Cost Cost Jun.30,2015 Budget Utility Systems Plant Water System Rehabilitation at Plant No.2 5,070,000 1,537,043 2,664.700 4,201.743 868,257 Boiler System Rehab&Scrubbers H&I Demolition at Plant 2 3,095,000 1,023,404 1,697,900 2,721,304 373,696 Consolidated Demolition&Utility Improvements at Plant 43,974,000 136,595 4T9,400 615,995 43,358,005 SCE Feed Reliability Improvements 22,490,000 - - - 22,490,000 Secondary Area Cable Tray Upgrades 2,154,000 - - - 2,154,000 Headworks Cable Trey Upgrades 3,015,000 - - - 3,015,000 Digester Gas Fadlities Study for Plants 1&2 750,000 420,565 257,100 677,665 72,335 Utility Water Systems Study 800,000 - - - 800,000 Plant Air System Master Plan 340,000 - - - 340,000 Electrical System Base Map 250,000 - - - 250,000 Sldestream Pumping System and Water Charactermation Study 250,000 250,000 Subtotal-Utility Systems 212,756,000 32,072,244 19,912,300 51,984,544 160,771,450 Process Related Special Projects Fall Protection Improvements at Plants Nos.1 and 2 2,687,000 2,597,677 1,300 2,598,9]] 88,023 Corrosion Management 28,500,000 8,979,211 1,249.600 10,228.811 18,271,189 Odor Control Master Plan 1,600,000 772,885 182."0 955,285 644715 Subtotal-Process Related Spacial Projects 32.787,000 12,349,713 1,433,300 13,783,073 19.003,927 Information Management Systems Process SCADA Replacement 24,680,000 - - - 24.680,000 Programmable Control Panel Upgrades 3,477,000 12,393 870,NO 882,693 2,594,307 SCADA System and Network Upgrades 27,839,000 - - - 27.839,000 Strategic Information Architecture(SIA) 1,995,000 1,158,338 275,000 1,433,338 561,662 InlerneVintranst Development 650,000 42,062 86,600 128,662 521,338 Geographic Information System 4,047000 1,387p91 119,700 1,507,191 2,539,809 Information Technology Equipment Upgrade 4,148,000 2,862,842 375,900 3,238,742 909,258 EAM Software and Process Implementation 6,500,000 3785,651 966700 4,752,351 1,747,649 PDS2D Software Replacement 525,000 284,988 67,200 352,188 172,812 Software and Computer Equipment Replacement Project 5,050,000 1,290,717 388,100 1,678,817 3.371,183 Process SCADA Link to Pump Stations 271,000 19,083 - 19,083 251,917 Information Technology Master Plan 500,000 5001000 Subtotal-Information Management Systems 79,682,000 10,843565 3,149,500 13,993,065 65,688,935 Strategic&Master Planning Facilities-Wide Safety Assessment 930,000 843,928 20,000 863,928 66,022 Landscape&Seventy Master Plan 150,000 - - - 150,000 Climate Change Impact Study 100,000 - - - 100,000 Stormwater Master Plan 300,000 - - - 300,000 Treatment Plant Hydraulic Assessment 300,000 - 18,900 18,900 281,100 Settlement&Liquefaction Study 700,000 - - - 700,000 Asset Management Program 4,800,000 2,728,183 200 2,778,383 2,021,617 Subtotal-Strategic&Master Planning 7,280,000 3,622,111 39,100 3,661,211 3,618,789 Water Management Projects Effluent Reuse Study 2,800,000 340,400 340,400 2.459,600 Subtotal-Water Management Projects 2,800,000 - 340,400 340,400 2,459,600 (Continued) Section 3-Page 8 CIP Budget Review Summary of Capital Improvement Construction Requirements- Project Life For the Nine Months Ended March 31,2015 Current Total Approved June 30,2014 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2015 Budget Support Facing.. Master Facilities Engineering Projects-Plant 35,228,000 21,111,389 2,822,700 23,934,089 11,293.911 Master Small Capital Replacement Rehabllitation-Plant 18,295.000 - BB3,500 BB3,500 17,411,500 Operations Center Entrance/Building Repairs 2,648,000 526,383 - 526,383 2,121,617 Title 24 Access Compliance and Building Rehabilitation Project 17,437,000 3,459,3M 3,714,700 7,174,055 10,262,945 South Perimeter Security 8 Storm Water Improvements at P1 3,005.000 - 154,800 154,800 2,BM,200 Site and Security Improvements at Plant No.2 252.000 199,349 22,500 221,849 30,151 Public Address System Study 100.000 - - - 100,000 Tunnels Systems Asset Management Plan 200,000 - - - 200,000 Plant No.2 Administrative Building Master Plan 300,000 - - - 300,000 Administrative Facilities Implementation Planning 80g000 31,927 723,600 755,527 44473 Ongoing Small Capital Replacement/Rehabilitation 22,088,000 16758,367 2,078,100 18,836467 3,251,533 Subtotal-Support Facilities 100,353,000 42,086,770 10,399,900 52486,670 47,866,330 others Future Research Line Item 10,440,000 1,527,795 139,600 1,667,395 8,772.605 Capital Improvement Program Mgmt.Services 300,000 39,900 39,900 260,100 Subtotal-Others 10,740.000 1,527,795 179,500 1,707,295 9,032.705 Additional Charges to CIP Completed at 6/30114 66,000 66,000 (66000) Total Treatment and Disposal Projects 2,005,613,000 780,323,107 114,265,500 894.588.607 1,111,024,393 Capital Equipment Purchases 16,OW,000 4,171413 2,078,600 6,250,013 9,749,987 Total Collection,Treatment and Disposal Projects and Capital Equipment Purchases $ 2,785,742,838 $874,374,781 $153,767,400 $1,028,142,181 $1,757,600,657 Section 3-Page 9 FY 2014-15 Third Quarter Report This Page Intentionally Left Blank Section 3- Page 10 Capital Assets Schedule & Debt Service Budget Review Capital Assets Schedule For the Nine Months Ended March 31,2015 Capital Facilities Budget Review Balance Year-to-Date Balance 07/01114 Additions $/31/15 CONSTRUCTION IN PROGRESS: Treatment Plant $ 218,812,639 $ 83,607,650 $ 302,420,069 Collection System 39,206,400 23,141,175 62,W,515 Subtotal 258,018,939 106,748,725 364,767,664 PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 15,959,659 - 15,969,559 Collection Lines and Pump Stations 753,136,534 - 753,136,534 Treatment Facilities 2,220,814,179 - 2,220,814.179 Effluent disposal facilities 97,014,820 - 97,014,820 Solids disposal facilities 3,463,236 - 3,463,236 General and administrative facilities 224717,092 - 224,717,092 Excess purchase price over book value on acquired assets 19,979,000 19,979,000 Subtotal 3,335,084,420 3,335,084,420 Total Property,Plant&Equipment B CIP S 3,593,103,359 $ 106,748,725 $ 3,699,852,084 Debt Service Budget Review 2014-15 Yeanto-Date Remaining Budget Payments %of Budget Budget Principal Payments by Debt Issue: 2007A COP 245,000 245,000 100.00% - 2007BCOP 6.450,000 6,450,000 100.00% - 2008BCOP 8,270,000 8,270,000 100.00% - 2008ACOP 3,855,000 3,855,000 100.00% - 201CABABa - - N/A - 2010C BABs - - N/A - 2011ACOP 9,055,000 9,055,000 100.00% - 2012ACOP - - WA - 2012B COP - - WA - 2013A LANs 129.625,000 129,625,000 100.00% - 2014A COP - - WA - 2014B CANS WA Subtotal Principal Payments 15T,500,000 157500,000 100.00% Interest Expense by Debt Issue: 2007A COP 4,124,194 3,096,178 TS.OT% 1,028,016 2007B COP 13,162,962 5,568,163 42.30% ],594,]99 2008E COP 630,980 405,680 64.29% 225,300 2009A COP 8,999,175 6.749,375 75A0% 2,249,800 2010A BABs 2,897,639 2,500,541 86.30% 397,098 2010C BAB. 6,523,780 5,627,659 86.26% 896,121 2011ACOP 5,825,450 4,263,450 73.19% 1,562,000 2012ACOP 3,735,900 2,802,000 75.00% 933,900 2012E COP 3,187,400 2,390,500 75.00% 796,900 2013ACAN. 2,592,500 760,000 29.32% 1,832,500 2014A COP - 3,275,422 N/A (3,275,422) 2014E CAN. - 2,056,548 N/A (2,056,548) 2015ACOP 1,226,495 N/A (1,226,495) Subtotal Interest Expense 51.679,980 40722,011 78.80% 12,184,464 Total Debt Service $ 20 .179,980 $ 198,222,011 94.76% $ 12,184,464 Section 4-Page 1 2014-15 Third Quarter Report This Page Intentionally Left Blank Section 4- Page 2 Self Insurance Budget Review General Liability and Property Fund Budget Review For the Nine Months Ended March 31,2015 Percent Actual of Budget Remaining Actual 2014-15 Through Through 2014-15 Through Increase Budget 3/31/15 3131115 Budget 3/31/14 (Decrease) Revenues: In-Lieu Premiums $ 500,000 $ 375,003 75.00% $ 124,997 $ 681,750 $ (306,747) Miscellaneous Other Revenue - 274 N/A - 129,808 (129,534) Service Department Allocations 24,100 4,122 17.10% 19,978 13,122 (9,000) Total Revenues 524,100 379,399 72.39% 144,975 824,680 (445,281) Expenses: Benefits/Claims 120,000 23,567 19.64% 96,433 60,285 (36,718) Contractual Services 1,200 - 0.00% 1,200 - - Legal Services 75,000 39,856 53.14% 35,144 5,016 34,840 Professional Services 51000 0.00% 5,000 Subtotal 201.200 63,423 31.52% 137,777 65,301 (1,878) Policy Premium Expense 1,300,000 826,404 63.57% 473,596 817,044 9,360 Total Expenses 1,501,200 889,827 59.27% 611,373 882,345 7,482 Excess Revenue (Expense) (977,100) (510,428) $ (466,398) (57,665) (452,763) Beginning Reserves 56B74,500 56,802,224 56,904,863 (102,639) Ending Reserves $55, 997,400 $ 56, 991,796 $ 56, 447,198 $ (555,402) Section 5-Page 1 FY 2014-15 Third Quarter Report Workers' Compensation Fund Budget Review For the Nine Months Ended March 31,2015 Percent Actual of Budget Remaining Actual 2014-15 Through Through 2014-15 Through Increase Budget 3/31/15 3/31/15 Budget 3131114 (Decrease) Revenues: In-Lieu Premiums $ 755,000 $ 566,250 75.00% $ 188,750 $ 303,333 $ 262,917 Miscellaneous Other Revenue - 9,117 N/A (9,117) 3,648 5,469 Service Department Allocations - - N/A - - - Total Revenues 755,000 575,367 76.21% 179,633 306,981 268,386 Expenses: Benefits/Claims 400,000 505,866 126.47% (105,866) 428,827 77,039 Contractual Services - - N/A - - - Legal Services 100,000 98,521 98.52% 1,479 61,820 36,701 Professional Services 50,000 50,074 100.15% (74) 33,167 16,907 Subtotal 550,000 654,461 118.99% (104,461) 523,814 130,647 Policy Premium Expense 150,000 166,895 111,26% (16,895) 148,400 18,495 Total Expenses 700,000 821,356 117,34% (121,356) 672,214 149,142 Excess Revenue(Expense) 55,000 (245,989) $ 300,989 (365,233) 119,244 Beginning Reserves 1,940,900 1,771,820 2,238,580 (466,760) Ending Reserves $ 1,995,900 $ 1,525,831 $ 1,873,347 $ (347,516) Section 5-Page 2 a C�p April 30, 2015 STAFF REPORT Quarterly Treasurers Report For the Three Months Ended March 31, 2015 SUMMARY Section 15.0 of the District's Investment Policy includes quarterly reporting requirements for the District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by Chandler Asset Management, the District's external money manager. The ongoing monitoring of the District's investment program by staff and Callan Associates, the District's independent investment advisor, indicates that the District's investments are in compliance with the District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the District to meet budgeted expenditures for the next six months. The District's portfolios do not include any reverse repurchase agreements or derivative securities. ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by Chandler Asset Management, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, is attached for reference. Also attached are Long-Term and Liquid Operating Monies Summary of Performance Data and Portfolio Statistics charts that depict the performance results, estimated yield and duration, credit quality, and sector diversification of the District's portfolios, as of March 31, 2015. The Liquid Operating Monies portfolio, with an average maturity of 128 days, consists entirely of high quality fixed income investments consistent with the District's investment policy. Portfolio Performance Summary The following table presents a performance summary of the District's portfolios as compared to their benchmarks for the period January 1 through March 31, 2015. ODSD ♦ P.O.Box812] ♦ Fountain Valley,LA 92728-8127 • (714)%2-2411 Quarterly Treasurer's Report For the Three Months Ended March 31, 2015 Page 2 of 3 Portfolio Performance Summary Quarter Ended March 31,2015 Liquid Operating Monies %) Long-Tenn Operating Monies % Total Rate Total Rate of of Return Benchmarks' Return Benchmarks' 3 Months 0.07 0.00 0.82 0.96 6 Months 0.08 0.01 1.38 1.44 9 Months 0.13 0.02 1.32 1.38 12 Months 0.15 0.03 2.11 2.02 Since inception 30 Sept.95 2.91 2.68 4.81 4.50 Market Value 9.5M 386.8M Average Quality "AA-7Aa1" Current Yield(%) 0.6 1.3 Estimated Yield to Maturity(%) 0.2 0.9 Quarterly Deposits(Wilhdrawals) - 7.5M - 50.5M Estimated Annual Income $0.1M $4.4M (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Teml Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Liquid Long-Term Quarter Operating Operating Ending Monies($M) Monies($M) 30 Jun.14 85.9 506.2 30 Sep.14 58.9 461.6 31 Dec.14 56.9 433.5 31 Mar.15 49.5 Wits District's Investment Account Balances as of March 31,2015 Book Balances Estimated Investment Accounts March 31,2015 Yield(%) Slate of Calif.LAIF $ 44,182.882 028 Union Bank Checking Account 278,706 0.01 Union Bank Overnight Sweep Account 554,000 0.00 Union Bank W/C Checking 162,594 0.00 Chandler-Short-term Portfolio 49,461,228 0.19 Chandler-Long-term Portfolio 386,837,796 0.91 Petty Cash 3,000 N/A BNY Mellon OCIP Reserve 3,606,594 0.37 TOTAL $4A5 OA5 A00 0.78 Debt Service Reserves w/Trustees R 32 9fiefi92 1.65 Quarterly Treasurer's Report For the Three Months Ended March 31, 2015 Page 3 of 3 District's Cost of Funds on Debt Issues as of March 31, 2015 Annual Costof Funds Outstanding Interest Issue Description COP Balance Rate(%) 2007A Fixed $92,140,000 4.50 2007B Fixed 13,885,000 4.71 2008B Fixed 17,315,000 2.96 2009A Fixed 180,235,000 4.72 2010A Fixed 80,000,000 3.68 2010C Fixed 157,000,000 4.11 2011A Fixed 121,290,000 2.61 2012A Fixed 100,645,000 3.54 2012B Fixed 66,395,000 1.50 2014A Fixed 85,090,000 2.34 2014B Fixed 120,850,000 0.35 2015A Fixed 127.510.000 3.30 TOTAL FI.Ifi }f5.01111 Weighted Avg.Cost of Funds 3.23 ATTACHMENTS 1. Chandler Quarterly Report 2. Summary of Performance Data and Portfolio Statistics— Liquid Operating Monies 3. Summary of Performance Data and Portfolio Statistics — L-T Operating Monies 4. Investment Transactions and Balances in LAW 5. Asset Summary by Asset Type— Liquid Operating Portfolio 6. Asset Summary by Asset Type — Long Term Portfolio 7. Asset Summary by Asset Type — Owner Controlled Insurance Program Escrow Account 8. Investment Listing (Yield Analysis Report). 9. Asset Detail — Consolidated 10. Custody Transaction History -- Consolidated 11. Callan Quarterly Review 12. Chandler Quarterly Review 13. Rating Agency Comparisons C/" CHANDLER AWE MANAGEMENT March 31, 2015 Mr. Mike White, CPA Controller Orange County Sanitation District 10844 Ellis Avenue Fountain Valley CA 92708-7018 Dear Mike, Bond Market Recap Job growth was weaker than expected in March with nonfarm payrolls up 126,000, well below the consensus forecast of 245,000. The unemployment rate was unchanged at 5.5%, though the labor participation rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected). Unfavorable weather and the strong dollar were likely factors for weak job growth in March. Overall, there is still excess slack in the labor market. Growth in the manufacturing sector has also softened. We believe the strong U.S. dollar and sluggish economic growth abroad has dampened U.S. manufacturing trends. U.S. consumer confidence remains strong, but consumer spending trends have underwhelmed. Housing data remains volatile but the overall trajectory seems positive. There have been pockets of weakness in recent economic data, but some of the factors for this weakness may be transitory (such as unfavorable weather and the West Coast port delays). The Federal Open Market Committee (FOMC) left policy rates unchanged at its March 17-18 meeting, without any dissenting votes. The Committee noted economic activity moderated and the inflation rate declined further. The word "patient" (with regard to the timing of a potential future rate hike)was removed from the policy statement but the Committee indicated a rate hike at the next FOMC meeting in April is unlikely. The Fed left the door open for a possible rate hike in June, but we believe the first rate hike is likely to occur later in the second half of this year. Notably, the Fed expects to see further improvement in the labor market before it starts to raise rates, which implies the Fed remains dissatisfied with current employment conditions. The Committee also needs to be confident inflation will move back to its 2% target, before they raise rates. With inflation low, we believe the Fed faces no urgency to begin raising rates. Even though the Committee removed the word "patient" from its policy statement, we believe the Fed's overall message was somewhat dovish, which makes a June rate hike unlikely, in our view. We believe ongoing uncertainty about the timing of the Federal Reserve's first interest rate hike will likely continue to fuel market volatility. The yield curve flattened in March. Domestic economic data has recently softened, and the timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank continues to execute its bond-buying program and other global central banks are pursuing highly accommodative monetary policies. C/" CHANDLER AWE MANAGEMENT Consumer Prices In February, overall Consumer Price Index (CPI) inflation was flat on a year-over-year basis after being down 0.1% in January. Headline inflation has fallen sharply in recent months due to a precipitous decline in energy prices. The year-over-year Core CPI (CPI less food and energy) increased slightly to 1.7% in February from 1.6% in January. Retail Sales In February, retail sales rose 1.7% on a year-over-year basis, following a 3.6% gain in January. On a month-over-month basis, retail sales declined 0.6% in February (below the consensus forecast for a 0.3% increase) after declining 0.8% in January. Gasoline sales actually rebounded in February after plunging in the prior month. However, auto sales declined 2.5% in February after a 0.5% increase in January. Retail sales have disappointed over the past few months, which is surprising since consumer confidence remains strong. Unfavorable weather may have contributed to the weak February retail sales report. Labor Market Nonfarm payrolls rose by 126,000 in March, well below the consensus forecast of 245,000. February and January payrolls were also revised down a net 69,000. Private payrolls rose by 129,000 in March, while government jobs declined by 3,000. The unemployment rate was unchanged at 5.5%. The labor participation rate edged down to 62.7% in February from 62.8%. Wages rose 0.3% (higher than expected), following a 0.1% increase in February. On a year- over-year basis, wages rose 2.1% in March versus 2.0% in February. Job growth in weather- sensitive sectors such as construction, and leisure & hospitality, were much weaker in March than in previous months, which suggests unfavorable weather had a significant impact on the overall March nonfarm payroll figure. There was also a sharp decline in manufacturing payrolls in March which may be attributable to the strong U.S. dollar. Housing Starts Single-family housing starts fell 14.9% in February after declining 3.9% in January. Overall housing starts (including single- and multi-family) dropped 17.0% in February, well below expectations. Unfavorable weather may have contributed to the sharp drop in housing starts in February. 3 Month 0.02 0.04 (0.02) 2 Year 0.56 0.67 (0.11) 3 Year 0.88 1.07 (0.19) 5 Year 1.37 1.65 (0.28) 7 Year 1.71 1.97 (0.26) 10 Year 1.92 2.17 (0.25) 30 Year 2.54 2.75 (0.21) 2 C/" CHANDLER ASSET MANAGEMENT ECONOMIC INDICATOR CURRENT RELEASE PRIOR RELEASE ONE • Trade Balance (35.4) $Bin FEB 15 (42.7) $Bin JAN 15 (41.9) $Bin FEB 14 GDP 2.2% DEC 14 5.0%SEP 14 3.5% DEC 13 Unemployment Rate 5.5% MAR 15 5.5%FEB 15 6.6%MAR 14 Prime Rate 3.25%MAR 15 3.25% FEB 15 3.25% MAR 14 CRB Index 211.9 MAR 15 224.1 FEB 15 304.67 MAR 14 Oil (West Texas Int.) $47.60 MAR 15 $49.76 FEB 15 $101.58 MAR 14 Consumer Price Index 0.0% FEB 15 (0.1)%JAN 15 1.1% FEB 14 (y/o/y) Producer Price Index (y/o/y) (3.4)% FEB 15 (3.1)%JAN 15 1.3%FEB 14 Dollar/EURO 1.07 MAR 15 1.12 FEB 15 1.38 MAR 14 Performance Attribution Long-Term Portfolio The Long-Term portfolio underperformed the benchmark during the quarter, generating a return of 0.82% versus a return of 0.96% for the Bank of America Merrill Lynch 1-5 Year AAA-A US Corporate and Government Index. Corporate spreads were close to unchanged during the quarter while Agency spread tightened a small amount, modestly benefiting the portfolio. The overall maturity term structure of the portfolio detracted from results as the Chandler team is working to methodically reposition the portfolio to be more consistent with the 1-5 year benchmark. In particular, the portfolio has light exposure at the three year maturity point and outsized exposure in bonds with maturities greater than five years, relative to the benchmark, which detracted from the relative performance of the portfolio during the quarter. The portfolio also experienced a large liquidity needs at the end of January when the District withdrew $50.5 million from the portfolio. Liquid Portfolio The Liquid portfolio outperformed the benchmark during the quarter, generating a positive return of 0.07% versus the three month Treasury Bill index returning 0.00%. Similar to the prior quarter, the inclusion of securities with higher yields than the benchmark aided the performance of the portfolio during the period. The portfolio experienced a $7.5 million liquidity need at the end of January. 3 C/" CHANDLER ASSET MANAGEMENT Economic Outlook We continue to expect GDP to grow between 2.5-3.0% in 2015, compared to growth of 2.4% in 2014. Inflation remains below Federal Reserve targets, and with the price of oil poised to stay in a relatively tight range through the summer months, it is unlikely inflation metrics will accelerate in the near term. Although the Federal Reserve modestly lowered their economic projections in March, the Fed's outlook still appears more constructive compared to the consensus market view. We expect global central banks to continue to be a source of market volatility as unconventional policies are adopted abroad and the Federal Reserve attempts to normalize policy in the United States. The dollar index improved by close to 9% during the first quarter, and dollar strength should continue, although the rate of change is unlikely to be as significant in the coming quarter. The strong dollar is starting to negatively impact corporate earnings, which we think will be a contributing factor in causing the Federal Reserve to eventually lower their forecast closer to the market in the coming quarters. We are anticipating a range bound market, and given the overall strength in corporate balance sheets, we still think it makes sense to stay invested in the corporate market. Strategy Strategy highlights for the Long-Term Portfolio in the coming months: • Continue the process of reducing exposure to securities with maturities in excess of five years to reposition the portfolio to be more consistent with the 1-5 year strategy. • Continue to tactically add to the Corporate allocation to increase overall exposure closer to 25.0% of the portfolio. • Improve the Agency term structure allocation via building out exposure between the two to five year maturity points. • Continue to build out the ABS allocation to between 7.0— 10.0% of the portfolio. Strategy highlights for the Short-Term portfolio in coming months: • Increase the duration of the portfolio to improve the total return opportunity for the portfolio. • Ladder the Agency Discount Note exposure to coincide with upcoming liquidity needs. • Maintain a dedicated allocation to the US Treasury sector of at least 20.0% of the portfolio on an ongoing basis. 4 ORCHANDLER AWE MANAGEMENT Compliance Issues �/" Orange County Sanitation District Long Term March 31,2015 COMPLIANCE WITH INVESTMENT POLICY Assefsm mgedbyChandlerAss tManagementam in/Nilcon"ance with State["and w1h/he nvesientpolcy Category Standard Comment Treasurylaues 5 years nomination maturity Does notmmpIr Spia alonel 'AA*or better by of3 NRSR(r 30%maximum; 5%out; 5 Comples years maluntyr, Includes only ADD. li and FC perCGC US.Agonies 2096maxissner, 5yewsmadmmmadkrily Complies US.Corporal(MM) 'A'err better long teen rating by 1 cf3 NRSROs; 30%modmm; Does not comW 5%mu issuer 5 years mw maturity Municipal Secuddes 'A'err higher by l of3 PRSR0S;10%madmrn; 5%max issai Does not comW 5 yearsmaximan makinty Asset Backed/CMOs/ 'AA'or better by l of3 NRSR0s; 'A'or higher issuer rating by l Does no[touristy" Mortgage-backed of3 NRSR0s; 20%mammam; 5%max issuer(exitling M ad agenceik 5 yea rs max maturity NegaBede CDs 'A'err beaeron as long term debt by l of3 NR5R0s; 'A1N7'ar Complies highest shod tam refings by 1 of 3 NRSROs; 30%maldmta[5% max isser 5vaersmumationty CDs/7DS 5%max issuer, 5 years max maturity Complies BaNcersAcceptances A-1,or equvaled highest shod term rating by l of3 NRSR0S; Conpfes 40%maximum; 5%max issuer.180 days max mahrity Conlreaiaf paper A-1,or equvalea by 1 of 3 NRSROS; 'A'or better by 1 of 3 Complies pRSRCs.iflag term debt issued; 25%maximurn; 5%max isser, 270 days max masrity, MoneyMarketFuld Highest rating by2 of3 NR5R0s; 20%madman;10%max issuer Conplas Rep rc ass Agreemstts 102%oofeleralastlaa Couples Restarts Repatlrse 5116matdmnn,90 days max massity Couples Agreements lAF Not used byimeshrert achm Couples Avg Duatlm NDUGeweed BOmails - (8O%00120%aftalwadnmrk) Complies Mashoun Maerity, 5yeasmmimimmaturity Dos not runW 'as sense has th"y lTa(M)mulaes site m•Naam gross Mari 5Y erwngtxm(2)AM.0a®(3)Mos.danYdren(23)MBS,he (Sl nxrarlpeb.lama(3)eeiPaas eve bra Rl aeeuaes. Al Mlhex ssanes Mae meaeo svnlN pWasmsaly. •sail•sehra(2)A65,ar®(3)papby dbenly-Mrea(Zi)M65 pun y wh AAll assyra AtlJnmaj.SVHE(LYLSIP a9611Mait)b rraea ANA reSpsVd/b/SEP am Fech warns line pofcY requres AA apses bydYmtae Nf6m0. Teva ssuam Maa Mlelllra fan Prbas m•ggs. 5 ORCHANDLER AWE MANAGEMENT C/" Orange County Sanitation District Liquid Yamh 31,2015 COMPLIANCE WITH INVESTMENT POLICY Asaetsmanaged byCha dlerAasetManagementam in full compirmoe wlh Slate Iawand riff,be invesanentpoliicy Category St indard Comment Teasurylssues l yeermapmum makrity, Mnman abcationofl0% Canples 3rpo eUmal 'AA'or better by l a3 NRSROs; 30%maxirarq 5%max; 1 Comples year mffkffitf, twisters . IADB,BRD,and FC por CGC IAS.Agencies 20%max issuer 1 maximum maturity Ctimples us.Caparae(MM) 'A'or better log term rang by 1 of 3 NRSROs;30%owed xim; Compiles 5%mmbearer, t Warmax maturity Asset Backed/CMOs "War better by 1 a3 NRSROs; 'A'orhigher iarerrallg by l Compiles of3 NRSROs; 20%madrmm; 5%moor isser, Iym max maturity Ne)Wabe CDs 'A'ar better an its keg tarn debt by l a3 NR5R03; 'ALPt'a Compiles highest shod term ratings by 1 of 3 NRSROs: 30%maxmum:5% max is9nert year max makeity CDs/7DS 5%max issuer, Iyou max malwily Canples Bankers Aeceplances A4,or epivaert highest shod tern rating by l a3 NR5ROS; Complies 40%max mum; 5%max issuer,180 days max maturity Commercial Paper A-1,or ectovaert by t of 3 NRSROS; 'A'or better by t 013 Complies NRSROs,iFlag term debt issued; 25%maximurq 5%mar: issuer, 270 days max makady Money MarketFurel Fkghest rating by2 of3 NRSROs; 20%maxmum;10%max iswa Compiles RepadYse Agreenvts 102%coleteraiatim Canples Reverse Repsc ese 5%matimnn.g0 doys oem makxily Comples Agreements LAF Not used by investment adviser Complies Prohibited WSYcipal Secaifies Complies Prahibitetl a e Sec rities Can Avg Daabut NatDemeed180tl ; Madurabcooflil2year Comples Minimum hid rity 1 year maximum rrakrily Complies 6 ORCHANDLER ASSET MANAGEMENT C/" OCSD Lehman Exposure March 31.2015 COMPLIANCE WITH INVESTMENT POUCY Assetsmanaged by Chand/erAssetManagementare in full compearce wth State lawand wth Ore mmsbnentpolicy Category standard Comment Ttessurylss. 5 years maximum malrity Complies supratetiaul 'M'a better by l of3 NR5RCs; 30%maximaq 5%max; 5 Complies years mahzitf, YrJtdes anly MDB,BRD.and FC perC.GC U.S.Agercles 20%max issuer 5 years madmm maturity Can ies U.S.Corporate(MM) 'A'a bederlmg term rating by 1 a3 NRSROs; 30%maximrn; Does not compM 5%max issuer, 5 years max maturity Muimpal Searities 'A'a higher by l of3 NiSROS;10%maximum; 5%max inner, Canplies 5 years maximan maturity Asset Backed/CMDs/ 'AA'a better by l of3 N2SRCs; 'A'or higher issuer rating by l Canples Morigegebecked of3 NRSROs; 20%maximm; 5%max isser(exduding MBSfgokt agencyY,S years max mabrnty NsgpOeble CDs 'A'or better on Is long lerm debt by l of 3 NxSROs; 'AIIP1'a Canples highest short term ratings by 1 of 3 NRSROs; 30%mrcdnluq 5% mn issuer. 5 years max maturity CDa/TDS 5%max issuer. 5 years max ffWwft Contples BarirofsAaeptimoss A-1.or egdvaleal highest shed term rWrg by l of3 N7SRM Canples 40%maximm; 5%max issuer.180 days mex maturity Commercial Paper A-1,or equvaLd by l of3 NRSROS; 'A'or better by 1093 Canples NiSROs.iflalg term debt issued; 25%minimum; 5%max issuer. 270 days max mawnty MoneyMaaet Fuld Highest rating by2 of3 NiSROs; 20%maximum;10%max issuer Complex Repurchase Agreements 102%caaatetatintiat Cam es Reverse ideptadiase 5%maximm,90daysmurmehxity Canpties Agreements LAF 1 Nalused by investment adAsar compBes Avg Dumb INDUDeweecI60munits - to l20%aae betc mart) contplies Madman Malsity 5yeersmaximummatift Does neteollply' 'Around ems R mYm ice Wa(cap Ss Srm6)and$050 D ice atue tcusip 5 CUFF)•f4aar4dl awn Bran Jn,,s that was p li®m by hie pm rn,er ORCHANDLER AWE MANAGEMENT Defaulted Bonds MSD Leh.xn lxpwurn Holdings Report A=UM#1011H 0.v of f31n. 9HOMiM .—n&o6em lmOlm CmNm 1a,1110 llmrzov NRINR 0. uxq Egoue Dwx lw,elzw o.wx o.w N,aB zl xR ow D�b9n1ran6 NO$ a1.0B3;e 0 NRINR Ionl3ommon 3m[L 1046II.60 WI. 1360 0.00% 0.00 38 331 HR 0.00 ua wwowrz 52SESCI ) OdauM empalm O .l. se.6mm 1191x NRINR 46z �112.asm 0 (.kl.n) 691H. I manb mN Db,W 3QU(WW WIN9ptl 1319,1106 7,11 199.W.N 16.18% NRINR 9668 Dinttl3]Lg8 1891 % Q1 .21B 96J NR 1I)912L)B "IA0000 16.00% NRINR 9Bdt lobl 13 Cwponb I.00.000.00 WA Ln9,9311. 0.00% 000 M,639.R9.19) NR 0.00 1.OBd98.3B :306.28N 100.00% NRINR 93H tt1i4LPOR1i CU0 1]048¢60 WA 1.6)Bd963B 0.00% 00 p.6 0 .669.011 NR 000 i UL NARNE(VALUE PLM A001UED 916R8921 8 C/" CHANDLER ASSET MANAGEMENT Ratings Orange County Sanitation District Long Term March 31,2015 vs. December 31,2014 �Wox Wox q0% LO% xo9x m9% LN M ♦ M M � Nm5 �Nmr M M A N MR smn. 107% 764% 91% 09% ]m% IM1116 MA% 714% 19% OB% 08% Selo.SaV Rv¢ Orange County Sanitation District Liquid March 31,2015 vs. December 31,2014 WOY mA% WA% WAt WAY D01 t00Y OAY PM M A �A NR � NV15 1N1/11 AAA M A A MR mills 170% lab% 122% 00% 00% IM1116 9.5% 75.6% 14.9% 0.0% 00% So�w:56PRyvg 9 OILCHANDLER ASSET MANAGEMENT $600,000,000 LigeiE Operz6ng Monies $500,000,000 •Long-Tenn Operating Monies $400,000,000 $300,000,000 $200,000,000 $100,000,000 So 4 ?�� ✓t% 0. Q A 0 1Y I9 �Y 19 -11 HISTORICAL YIELD CURVE 4.00% �MAR15 DEC 14 3.00% —n MAR 14 2.54% 2.00% 1.92% 1.71% 1 37% 0.14% 0.88% 0.02% � 0.56% 0.00% 0 0 ^ h h 10 C/" Orange County Sanitation District Liquid Portfolio Summary Account#10282 As of 3/31/2015 PORTFOLIO CHARACTERISTICS I ACCOUNT • • Average Duration 0.34 Beg.Values End Values Issuer %Portfolio as of 2/281 as of 3/31/15 Government of United States 26.3% Average Coupon 0.56% Market Value 49,345,809 49,401,774 Federal National Mortgage Assoc 12.2% Average Purchase YTM 0.21 % Accrued Interest 107,892 59,258 Federal Home Loan Mortgage Corp 11.9% Average Market YTM 0.19% Total Market Value 49,453,702 49,461,032 Federal Home Loan Bank 11.2% Average S&P/Moody Rating AA,,/Aal Income Earned 9,650 8,262 Drefus Treasury MMKT FD 521 8.9% Average Final Maturity 0.35 yrs Cort/WD 0 Federal Farm Credit Bank 8.1 % Average Life 0.30 yrs Par 49,259,603 49,332.184 Caterpillar Inc 4.1 % Book Value 49,342,710 49,399605 Deere&Company 2.0% Cost Value 49,412,805 49,440:650 84.8% 40% 39.1% AA US (70 8%) (16.3 Corporate 16.3%) US 314% Treasury 30% 294°% Money (26.3%) Me ket un Fo FI 20% a9%) Commercial Paper 10% (5.0%) Agency % (43,4%) 0-.25 15-.5 .5-1 1-1.6 1.6-2 2-25 26-3 AAA A Maturity(YM) (17.0%) (12.2%) Chandler Asaet Management-CONFIDENTIAL Page 1 Estauggn Time 41W201512'.58:59 PM C/" Orange County Sanitation District Long Term Portfolio Summary Account#10266 As of 3/31/2015 PORTFOLIO CHARACTERISTICS ACCOUNT • • Average Duration 2.56 Beg.Values End Values Issuer %Portfolio as of 2/28/15 as of 3/31115 Government of United States 47.7% Average Coupon 1.32% Market Value 384,104,965 385,381,101 Federal National Mortgage Assoc 7.3% Average Purchase YTM 1.20% Accrued Interest 1,071,662 1,046,212 Federal Home Loan Mortgage Corp 7.1 % Average Market YTM 0.91 % Total Market Value 385,176,627 386,427,313 Federal Home Loan Bank 4.6% Average S&P/Moody Rating AA,,/Aal Income Earned 355,815 377,700 Bank of America Corp 2.1 % Average Final Maturity 3.13 yrs COntfWD -30,461 Toyota ABS 2.0% Average Life 2.73 yrs Par 378,348,597 379,357,827 Bank of Tokyo-Mit UFJ 1.9% Book Value 380,117,340 381,068,350 Toyota Motor Corp 1.9% Cost Value 381,085,550 382,055,370 74.6% • - • • MATURITY DISTRIBUTION CREDIT US 30% AA Corporate CS 27.0% (76.4%)- Supranational Treasury 26% (13%) (477%) BBB (0.9%) Municipal 20% rn% Bonds 151% NR 5 Money ABS % (3.0%) Market (5.9%) 10% 8.0% 85% BB% A MBS 7.0% 8.0% (9.1%) L4%) 5% Commercial Paper Agency CMO % (17.5%) 0-.25 25-s .5-1 1-2 2-3 3-4 4-5 fi� AAA Chandler Asset Management-CONFIDENTIAL Pagel Ex ugan Time:41W201512'.26:52 PM Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund March 31, 2015 Par Value Book Value Market Value Rate Yield Balance March 1,2015 $42,182,882 $42,182,882 $42,182,882 0.28 0.28 Deposits: 3/12/2015 11,800,000 11,800,000 11,800,000 0.28 0.28 Total Deposits 11,800,000 11,800,000 11,800,000 0.28 0.28 Withdrawals: 3/4/2015 (4,600,000) (4,600,000) (4,600,000) 0.28 0.28 3/18/2015 (2,700,000) (2,700,000) (2,700,000) 0.28 0.28 3/26/2015 (2,500,000) (2,500,000) (2,500,000) 0.28 0.28 Total Withdrawals (9,800,000) (9,800,000) (9,800,000) 0.28 0.28 Balance March 31,2015 $",182,882 $44,182,882 $44,182,882 0.28 0.28 Asset Summary Report ID: GL8251 Base Cumeve, USD BNY MELLON by Asset Type with Sectors Alt...te Base Cu eRate: OCS UQ OP CHANDLER-OCSF07511302 3 31 2015 Status: FINAL Net UnreaBzed Cost Market Value % of Gain/Loss Description Shares Par Base Base Total B CASH&CASH EQUIVALENTS U.S.DOLLAR COMMERCIAL PAPER-DISCOUNT 2,500,000.000 2,496,248.89 2,496,248.99 5.05% 0.00 FEDERAL HOME LOAN BANK- 1 YR OR LESS 2,000,000.000 1,999,783.34 1,999,783.34 4.04% 0.00 FEDERAL HOME LOAN MORTGAGES- 1 YR OR LESS 3,900,000.000 3,898,255.81 3,898,255.81 7.88% GOO SHORT TERM INVESTMENT FUNDS(US REGULATED) 4,424,183.840 4,424,183.84 4,424,183.84 8.94% 0.00 INTEREST 61,325.74 61,325.74 0.12% 0.00 U.S.DOLLAR 12,924,183.940 12,879,797.62 12,879,797.62 26.04% 0.00 CASH&CASH EQUIVALENTS 12,824,183.840 12,879,797.62 12,879,797.62 26.04% 0.00 F=D DICOME SECURITIES U.S.DOLLAR BANKING&FINANCE 5,008,000.000 5,023,580.64 5,018,530.48 10.15% -5,050.16 INDUSTRIAL 1,000,000.000 1,003,280.00 1,001,630.00 2.03% -1,650.00 RETAIL 1,000,000.000 1,001,340.00 1,001,320.00 2.02% -20.00 TECHNOLOGY 1,000,000.000 1,001,880.00 1,000,400.00 2.02% -1,480.00 US AGENCIES 15,500,000.000 15,577,132.00 15,550,920.00 31.44% -26,212.00 US GOVERNMENTS 13,000,000.000 13,014,965.43 13,008,630M 26.30% -6,335.43 U.B.DOLLAR 36,508,000.000 36,622,178.07 36,581,430.48 73.96% -40,747.59 FIXED INCOME SECURITIES 36,508,000.000 36,622,178.07 36,581,430.48 73.96% -4Q747.59 TOTAL ASSETS-EASE: 49,332,183.840 49,501,975.69 49,451,228.10 100.00% -40,747.59 411612015 4:45:25PM EDT 1 Work6ewh Asset Summary Report ID: G1,8251 Base Type lte Cum , USD BNY MELLON by Asset Te with Sectors Arnate Base Currency: ExcKavge Rate: OCS LONG CHANDLER-OCSF07522202 3 31 2015 Status: FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S.DOLLAR CASH EQUIVALENTS 104,812.500 104,812.50 44,283.28 0.01% -60,529.22 COMMERCIAL PAPER-DISCOUNT 16,500,000.000 16,468,612.53 16,468,612.53 4.26% 0.00 FEDERAL HOME LOAN BANK- 1 YR OR LESS 10,000,000.000 9,998,053.60 9,998,053.60 2.58% 0.00 FEDERAL HOME LOAN MORTGAGES- 1 YR OR LESS 10,000,000.000 9,993,194.40 9,993,194.40 2.58% 0.00 FNMA ISSUES- 1 YR OR LESS 19,800,000.000 19,790,379.99 19,790,379.99 5.12% 0.00 SHORT TERM INVESTMENT FUNDS(US REGULATED) 6,752,991.400 6,752,991.40 6,752,991.40 1.75% 0.00 CASH -1,449.16 -1,449.16 0.00% 0.00 PENDING TRADES 2,264.66 2,264.66 0.00% 0.00 INTEREST 1,063,350.59 1,063,350.59 0.27% 0.00 U.B.DOLLAR 63,157,803.900 64,172,210.51 64,111,681.29 16.57% -W,529.22 CASH&CASH EQUIVALENTS 63,157,803.900 64,172,210.51 64,111,681.29 16.57% -60,529.22 FLYED INCOME SECURITIES U.S.DOLLAR ABS-CAR LOANS 11,595,000.000 11,573,987.69 11,599,148.05 3.00% 25,160.36 ASS-CREDIT CARDS 4,000,000.000 4,001,406.25 4,001,960.00 1.03% 553.75 ADS-EQUIPMENT 6,955,000.000 6,956,439.14 6,966,686.55 1.80% 10,247.41 ABS-HOME EQUITY 314,475.640 261,002.58 303,045.14 0.08% 42,042.56 ASS-SMALL BUSINESS ADMINISTRATION 155,329.590 155,329.59 167,476.36 0.04% 12,146.77 ADS-STUDENT LOANS 48,439.320 48,242.79 49,668.71 0.01% 1,425.92 BANKING&FINANCE 47,400,000.000 48,985,753.58 47,395,908.00 12.25% -1,589,845.58 COLLATERALIZED MORTGAGE OBLIGATION COMM/( 237,007.680 237,618.72 237,266.02 0.06% -352.70 FHLMC MULTICLASS 2,163,646.400 2,370,788.79 2,450,334.12 0.63% 79,545.33 FHLMC POOLS 2,798.140 2,729.95 2,901.59 0.00% 171.64 FNMA POOLS 2,446,221.290 2,571,718.20 2,693,371.76 0.70% 121,653.56 FNMA REMIC 774,613.570 764,738.29 779,619.98 0.20% 14,881.69 FOOD BEVERAGE&TOBACCO 1,600,000.000 1,854,144.00 1,807,648.00 0.47% -46,496.00 GNMA MULTI FAMILY POOLS 310,166.330 310,162.19 321,487.21 0.08% 11,325.02 GNMA REMIC 58,506.920 58,506.92 58,935.78 0.02% 428.86 HEALTH CARE 5,300,000.000 5,327,727.00 5,439,379.00 1.41% 111,652.00 INSURANCE 500,000.000 499,630.00 505,080.00 0.13% 5,450.00 411612015 4:48:07PM EDT 1 Worklamh Asset Summary Report ID: G1,8251 Base Type ern Cum , USD BNY MELLON by Asset Te with Sectors Alt Base Currency: ExcEavBe Rate: OCS LONG CHANDLER-OCSF07522202 3 31 2015 Status: FINAL Net Unrealised Cost Market Value % of Gain/Loss Description Shares Par Base Base Total 8 OIL&GAS 6,000,000.000 5,963,540.00 6,001,120.00 1.55% 37,580.00 REITS 1,000,000.000 996,050.00 1,106,890.00 0,29% 110,840.00 SUPRANATIONAL ISSUES 5,000,000.000 5,020,700.00 5,019,000.00 1.30% -1,700.00 TAXABLE MUNICIPALS 9,240,000.000 9,272,383.89 10,490,107.60 2.71% 1,217,723.71 TECHNOLOGY 2,000,000,000 2,008,280.00 2,010,080.00 0,52% 1,800.00 U.S.TIPS 13,490,368.000 13,380,526.71 13,519,909.66 3.49% 139,382.95 US AGENCIES 27,500,000.000 27,499,000.00 27,646,500.00 7.15% 147,500.00 US GOVERNMENTS 169,200,000,000 169,089,992.36 170,529,798.00 44,08% 1,439,805.64 UTILITY-ELECTRIC 1,000,000.000 999,810.00 1,007,930.00 0.26% 8,120.00 WHOLE LOAN-CMO-COLLATERALIZED MTG OBLIG 613,262.910 613,260.12 614,863.53 0.16% 1,603.41 U.S.DOLLAR 318,904,835.790 320,923,469.76 322,726,115.06 83.43% 1,902,646.30 FIXED INCOME SECURITIES 318,904,835.790 320,823,468.76 322,726,115.06 83.43% 1,902,646.30 TOTAL ASSETS-BASE: 382,062,639.690 384,995,679.27 386,837,796.35 100.00% 1,842,117.08 411612015 4:48:07PM EDT 2 Worklswh Asset Summary Report ID: OL8251 Base Cumeve, USD BNY MELLON by Asset Type with Sectors Alt...te B eas Cu Rate: ESCROWACCOUMT-OCSF045555e2 3 31 2015 Status: FINAL Net Unrealized Coat Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH a CASH EQUNALENTS U.S.DOLLAR INTEREST 6,738.63 6,938.63 0.19% 0.00 FDCED VHXMIE SECURITIES U.S.DOLLAR US GOVERNMENTS 3,594,000.000 3,603,596.33 3,594,000.00 99.81% -9,596.33 TOTAL ASSETS-BASE: 3,594,000.000 3,610,334.96 3,600,738.63 100.00% .9,596.33 411612015 4:49:50PM EDT 1 Workbench Yield Analysis Report ID: RAM234 i Saw Currency: BNY MELLON OCSF07611102 3/31/2015 Liquid Oper•Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration CASH Is TEMPORARY Sum of Account Receivables - 0.00 SUMRECV 61,326 AGENCY 2,000,000.00 FEDERAL HOME LN UK CONS DISC 0.02 Ass 100.00 1,999,783 15.60 0.04 313384Ei4 MAT 04/15/2015 1,999,783 4.04 2,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.12 Aaa 99.95 1,998,833 15.59 0.42 313396EZ5 0.000%08/28/2015 DD 08/28/14 1,998,833 4.04 1,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.19 Asa 99.95 999,704 7.80 0.31 313396JM6 MAT 07/23/2015 999,704 2.02 COMMERCW PAPER 1,000,000.00 TOYOTA MTR CR CP DISC 0.27 P-1 99.90 998,626 7.09 0.37 89233HVB7 08/11/2015 998,629 2.02 1,000,000.00 BANK TOKYO-MITSUB DISC 0.27 0.27 P-1 99.90 999,020 7.99 0.36 06538CTV3 06/29/2015 999,020 2.02 500,000.00 PNC BANK N A DISC 0.39 P-1 99.84 498,601 3.89 0.43 69349KW22 09/02/2015 498,601 1.01 OTHER 4,424,183.94 DREYFUS TREAS&AGY CSH CSH MG - A. 4,424,184 34.51 0.08 996085247 VAR RT 12/31/2049 DD 04/09/97 4,424,184 8.94 TREASURIES AND AGENCIES O 900,000.00 FEDERAL HOME LN MTG CORP DISC 0.00 Aaa 100.00 899,718 7.02 0.00 313396DU4 MAT04/01/2015 899,718 1.82 411612015 4:58:36PM EDT 1 Source:The Bmik of New York Mellan Corpomfion Yield Analysis Report ID: RAM234 Ease Currency: USD BNY MELLON 0CSFO7511102 3/31/2015 Liquid Oper•Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration TOTAL:CASH&TEMPORARY 0.14 0.06 12,818,472 100.00 0.20 12,879,798 FIXED INCOME AGENCIES&OTHER GOVT GEL 2,000,000.00 FEDERAL HOME LN MTG CORP 0.07 0.50 Ace. 100.02 2,002,184 5.46 0.04 3137EADDS 0.500%04/17/2015 DO 02/21/12 2,000,380 4.04 2,000,000.00 FEDERAL NATL MTG ASSN 0.11 0.50 A. 100.06 2,002,740 5.46 0.16 3135GOKM4 0.500%05/27/2015 DD 04/19/12 2,001,220 4.05 2,000,000.00 FEDERAL FARM CR BK CONS BD 0.14 0.50 Aso. 100.08 2,003,400 5.46 0.23 3133EARQ3 0.500%06/23/2015 DD 05/23/12 2,001,620 4.05 2,000,000.00 FEDERAL NATL MTG ASSN 0.15 0.50 Aaa 100.09 2,003,408 5.46 0.25 3135GOLNI 0.500%07/02/2015 DO 05/21/12 2,001,760 4.05 2,000,000.00 FEDERAL NATL MTG ASSN 0.20 1.98 Aaa 100.85 2,025,660 5.50 0.47 31398A3T7 2.000%09/21/2015 DD 09/21/10 2,016,940 COS 2,000,000.00 FEDERAL HOME LN BE CONS BD 0.23 0.50 Ace 100.17 2,003,320 5.47 0.63 313380L96 0.500% 11/20/2015 DD O8/23/12 2,003,480 4.05 1,500,000.00 FEDERAL HOME LN BK CONS BD 0.24 1.94 A. 100.67 1,515,240 4.12 0.44 31337OJB5 1.750%09/11/2015 DD 08/04/10 11510,080 3.05 2,000,000.00 FEDERAL FARM CR BK CONS BD 9.26 1.49 Aaa 100.77 2,021,190 5.50 0.62 31331,1281 1.500% 11/16/2015 DO 11/15/10 2,015,440 4.07 RANKS&FINANCE 1,000,000AO CATERPILLAR FINANCIAL SERVICES 0.18 1.10 A2 100.15 1,003,340 2.73 0.16 14912LSD9 1.100%05/29/2015 DO 05/30/12 1,001,480 2.02 411612015 4:58:36PM EDT 2 Source:The Bur c of New York Melton Corpomtku Yield Analysis Report ID: RAM234 Base Currency: USD BNY MELLON OCS1707511102 3/31/2015 Liquid Oper•Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 1,008,000.00 JOHN DEERE CAPITAL CORP 0.39 0.70 A2 100.13 1,009,341 2.75 OA2 24422ERV3 0.700%09/04/2015 DO 09/07/12 1,009,320 2.04 1.000,000.00 GENERAL ELECTRIC CAPITAL CORP 0.42 1.62 Al 100.30 1,005,920 2.74 0.25 36962G5Z3 1.625%07/02/2015 DD 07/02/12 1,003,030 2.03 1,000,000.00 CHARLES SCHWAB CORD/THE 0.51 0.85 A2 100.23 1,002,700 2.74 0.67 808513AH8 0.850% 12/04/2015 DO 12/06/12 1,002,280 2.03 1,000,000.00 JPMORGAN CHASE&CO 0.86 1.12 A3 100.24 1,002,380 2.74 0.90 46623EJU4 1.125%02/26/2016 DD 02/26/13 1,002,420 2.03 INDUSTRIALS 1,000,000.00 CATERPILLAR INC 0.26 0.95 A2 100.16 1,003,280 2.73 0.24 149123BY6 0.950%06/26/2015 DD 06/26/12 1,001,630 2.03 1,000,000.00 INTERNATIONAL BUSINESS MACHINE 0A9 0.75 Aa3 100.04 11001,880 2.73 0.11 45920OHD6 0350%05/11/2015 DD 05/11/12 1,000,400 2A2 1,000,000.00 COSTCO WHOLESALE CORP 0.46 0.65 Al 100.13 1,001,340 2.73 0.68 22160KAD7 0.650%12/07/2015 DD 12/07/12 1,001,320 2.02 TREASURIES 2,000,000.00 U S TREASURY NOTE 0.07 0.37 Asa 100.06 2,002,507 5.46 0.21 912828STA 0.375%06/15/2015 DD 06/15/12 2,001,260 4.05 3,500,000.00 U S TREASURY NOTE 0.13 0.25 Aea 100.05 3,502,883 9.56 0.38 912828TK6 0.250%08/15/2015 DD 08/15/12 3,501,645 7.08 3,500,000.00 USTREASURY NOTE 0.16 0.25 Aea 100.05 3,503,156 9.56 0.50 912828VY3 0.250%09/30/2015 DD 09/30/13 3,501,645 7.08 4,000,000.00 U S TREASURY NOTE 0.21 0.37 Are. 100.10 4,006,420 10.93 0.62 912828TX8 0.3759% 11/15/2015 DD 11/15/12 4,004,090 8.10 411612015 4:58:36PM EDT 3 Source:The Bauk of New York Mellon Corpomtku Yield Analysis Report ID: RAM234 Ease Currency: USD BNY MELLON OCSFo7511102 3/31/2015 Liquid Oper•Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration TOTAL:F=D INCOME 0.22 0.72 36,622,178 100.00 0.41 36,581,430 TOTAL: Liquid Oper-Pimco 0.21 0.64 49,440,650 100.00 0.35 49,461,228 411612015 4:58:36PM EDT 4 Source:The Bur c of New York Melton Corpomdoo Yield Analysis Report ID: RAM234 i Saw Currency: BNY MELLON OCSM7522202 3/31/2015 Long Term OPer-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration CASH &TEMPORARY Sum of Account Receivables - 0.00 SUMRECV 1,065,615 AGENCY 10,000,000.00 FEDERAL NATL MTG ASSN DISC 0.13 Aaa 99.94 9,994,233 15.85 0.43 313588LDS 0.000%09/01/2015 DD 9/08/2014 9,994,233 2.58 COMMERCLV.PAPER 10,000,000.00 FEDERAL HOME LN BE CONS DISC 0.05 Aaa 100.00 9,998,054 15.85 0.08 313384FA2 MAT05/01/2015 9,998,054 2.58 10,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.13 Aaa 99.94 9,993,194 15.85 0.46 313396LP6 0.0001A 09/11/2015 DD 09/11/201 9,993,194 2.58 2.000,000.00 TOYOTA MTR CR CP DISC 9.26 P-1 99.89 1,997,256 3.10 0.44 89233HW42 09/04/2015 1,997,256 0.52 7,500,000.00 BANK TOKYO-MITSUB DISC 0.27 0.27 P-1 99.90 7,490,938 11.88 0.36 06538=3 06/29/2015 7,490,938 1.94 7,000,000.00 PNC BANK N A DISC 0.38 P-1 99.84 6,980,419 11.09 0.43 69349KW22 09/02/2015 6,980,419 1.80 OTHER 104,812.50 SLH PROXY LONG EXPOSURE - - 104,813 0.09 - 99WAEU30 SLHOPNTA4 44,283 0.01 6,752,991.40 DREYFUS TREAS 8:AGY CSH CSH MG - A. 6,752,991 10.01 0.08 996085247 VAR RT 12/31/2049 DD 04/09/97 6,752,991 1.75 TREASURIES AND AGENCIES O 411612015 4:58:36PM EDT 5 Source:The Bmik of New York Meltan Corporation Yield Analysis Report ID: RAM234 Ease Currency: USD BNY MELLON OCSF07522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 9,800,000.00 FEDERAL NATL MTG ASSN DISC 0,03 Aaa 100.00 9,796,147 15.53 0.04 31358SEK7 0.000%04/16/2015 DD 04/21/201 9,796,147 2.53 US CAM 1.00 USD(UNITED STATES DOL ) - - 0 0.00 - NA9123459 GL PAYABLES RECEIVABLES 0 0.00 1.00 US CASH - - 0 0.00 - 999999USD GL PURE CASH -1,449 0.00 TOTAL:CASH&TEMPORARY 0.15 0.09 63,108,044 100.00 0.27 64,111,681 FIXED INCOME AGENCIES A,OTHER GOUT OHL 5,000,000.00 FEDERAL HOME LN MTG CORD 0.59 0.50 Aaa 99.83 4,991,050 1.54 1A1 3137EADUO 0.500%01/27/2017 DO 01/16/15 4,991,400 1.29 5,000,000.00 FEDERAL HOME LN MTG CORP 0.81 0.75 Aaa 99.82 4,967,500 1.54 2.75 3137EADN6 0.750%01/12/2018 DD 11/21/12 4,991,150 1.29 5,000,000.00 FEDERAL HOME LN MTG CORP 0.93 0.88 Aaa 99.84 4,974,I00 1.54 2.90 3137EADP1 0.875%03/07/2018 DD 01/17/13 4,991,950 1.29 7,500,000.00 FEDERAL HOME LN BE CONS BD 0.95 1.36 Aaa 101.22 7,544,850 2.34 2.89 313378A43 1.375%03/09/2018 DO 02/13/12 7,591,800 1.96 5,000,000.00 FEDERAL NATL MTG ASSN 1.38 1.72 Aaa 101.60 5,021,500 1.57 4.30 3135GOZG1 1.750%09/12/2019 DD 07/28/14 5,080,200 1.31 BANKS Is FINANCE 6,300,000.00 WELLS FARGO BANK NA 0.25 0.75 Aaa 100.15 6,297,795 1.95 0.30 94985115F7 0.750%07/20/2015 DO 07/29/13 6,309,513 1.63 411612015 4:58:36PM EDT 6 Source:The Ba of New York Mellon Ccrpom600 Yield Analysis Report ID: RAM234 Base Currency: USD BNY MELLON 00SF07522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 5,200,000.00 TOYOTA MOTOR CREDIT CORP 0,32 0.55 Aa3 100.25 5,200,000 1.61 1.13 89236TAK1 VAR RT 05/17/2016 DD 05/17/13 5,213,208 1.35 500,000.00 WELLS FARGO BANK NA 0.57 0.53 Ae3 99.91 500,000 0.15 - 94988J2L0 VAR RT 06/15/2017 DO 06/12/14 499,525 0.13 500,000.00 AFLAC INC 0.71 3.42 A3 101.02 499,630 0.16 0.37 001055AE2 3.450%08/15/2015 DO 08/09/10 505,080 0.13 2,000,000.00 GOLDMAN SACHS GROUP INC/THE 0.74 0.71 Baal 99.97 1,895,068 0.62 0.22 381410EG5 VAR RT 03/22/2016 DD 03/22/06 1,999,460 0.52 600,000.00 BANK OF"ERICA NA 0.76 G68 A2 99.83 600,000 0.19 0.11 06050TLX8 VAR RT 05/08/2017DD05/08/14 598,980 0.15 200,000.00 CITIGROUP INC 0.90 1.25 Baal 100.28 198,352 0.06 0.78 172967GGO 1.250%01/15/2016 DD 01/10/13 200,554 0.05 700,000.00 MORGAN STANLEY 1.56 5.98 Bea2 100.33 737,361 0.22 G07 61747YCE3 6.000%04/28/2015 DD 04/28/08 702,310 0.18 3,000,000.00 HSBC USA INC L62 1.62 A2 100.00 3,003,290 0.93 272 40428HPH9 L625%01/16/2018 DD 12/20/12 3,000,090 0.78 2,900,000.00 AMERICAN EXPRESS CO 1.63 6.06 A3 115.53 3,377,386 1.03 2.73 025816AY5 7.000%03/19/2018 DO 03/19/08 3,350,428 0.87 600,000.00 GOLDMAN SACHS GROUP INC/THE 1.77 5.34 Baal 111.35 692,806 0.21 2.59 38141GFG4 5.950%01/18/2018 DD 01/18/08 668,082 0.17 1,200,000.00 JOHN DEERE CAPITAL CORP 1.81 2.25 A2 102.10 1,204,956 0.38 4.26 24422ESS9 2.300%09/16/2019 DD 09/15/14 1,225,224 0.32 3,200,000.00 BEAR STEARNS COS LLC/THE 1.81 4.27 A3 108.91 3,523,520 1.08 3.02 073902CDB 4.650%07/02/2018 DO 06/25/03 3,485,216 0.90 411612015 4:58:36PM EDT 7 Source:The Bur c of New York Mellon Corpomtku Yield Analysis Report ID: RAM234 Base Currency: USD BNY MELLON OCSM7522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 3,800,000.00 BANK OF AMERICA CORP L87 5.23 Baal 110.04 4,334,014 1.29 2A6 060505DP6 5.750% 12/01/2017 DD 12/04/07 4,181,330 LOS 5.000,000.00 GENERAL ELECTRIC CAPITAL COST 1.96 2.18 Al 101.10 5,014,950 1.56 4.54 36962G7M0 2.200%01/09/2020 DO 01/09/15 5,055,150 1.31 2,000,000.00 JPMORGAN CHASE&CO 2.20 2.25 A3 100.21 1,994,880 0.62 4.56 46625HKA7 2.250%01/23/2020 DD 01/23/15 2,004,280 0.52 2,800,000.00 BANK OF AMERICA COST 2.24 5.92 Beat 116.04 3,417,664 1.00 3.21 59018MN9 6.875% 11/15/2018 DD 11/24/98 3,249,092 0.84 1,000,000.00 SIMON PROPERTY GROUP LP 2.42 &95 A2 110.69 996,050 0.34 5.30 828807CF2 4.375%03/01/2021 DD 08/16/10 11106,890 0.29 2,800,000.00 MORGAN STANLEY 233 4.74 Beat 116.01 3,200,848 1.00 5.45 61747WAL3 5.500%07/28/2021 DD 07/28/11 3,248,196 OR4 2,000,000.00 LEHMAN FIRTH HLD ESC 148.98 - 14.25 1,366,719 0.09 - 525ESCOY6 0.000%12/30/2016 DO 10/24/05 285,000 0.07 600,000.00 ESC LEHMAN BETH HLD ESCROW - - 14.38 406,605 0.03 - 525ESCIB7 0.000%01/24/2013 DD 01/22/08 86,250 0.02 CARDS 4,000,000.00 CHASE ISSUANCE TRUST AS AS 0.46 0.59 NR 100.05 4,001,406 1.24 0A7 161571FL3 0.590%08/15/2017 DO 09/13/12 4,001,960 1.03 CARS 3,595,000.00 TOYOTA AUTO RECEIVABLES 2 A A3 0.00 1.12 Aaa 100.32 3,594,456 1.11 - 89236WAC2 1.120%02/15/2019 DO 03/04/15 3,606,468 0.93 4,000,000.00 TOYOTA AUTO RECEIVABLES 2 AA3 B71 0.67 Ace. 99.94 3,991,719 1.23 1.23 89231MAC9 0.670% 12/15/2017 DO 03/19/14 3,997,690 1.03 411612015 4:58:36PM EDT 8 Source:The BaNc.of New York Mellon Corpomtku Yield Analysis Report ID: RAM234 Ease Currency: USD BNY MELLON OCSF07522202 3/31/2015 Long Term Oper-Menco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description Call(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 4,000,000.00 HONDA AUTO RECEIVABLES 20 1 A3 0.78 0.67 Aaa 99.88 3,987,813 1.23 1.10 43813JAC9 0.670% 11/21/2017 DD 02/27/14 3,995,000 1.03 COMMERCIAL MORTGAGES 237,007.68 NCUA GUARANTEED NOTES TR C1 Al 0.99 1.60 - 100.11 237,619 0.07 0.18 62888XAA2 1N00% 10/29/2020 DO 11/10/10 237,266 0.06 EQUIPMENT LOANS 2,955,000.00 HE EQUIPMENT TRANSPORTAn I A3 0.00 1.28 A. 100.14 2,954,564 0.91 - 36164EAC9 1.280%02/25/2019 DD 03/04/15 2,959,167 0.77 4,000,000.00 JOHN DEERE OWNER TRUST 20 B A3 0.89 1.07 Asa 100.19 4,001,875 1.24 1.04 477877AD6 1.070% 11/15/2018 DD 09/03/14 4,007,520 1.04 FANNIE MAE REMIC 198,879A0 FNMA GTD REMIC P/T 07-114 A6 0.00 OAS A. 98.73 189,184 0.06 - 31396X3Q5 VAR RT 10/27/2037 DD 11/30/07 196,344 0.05 575,734.17 FNMA GTD REMIC P/T 11-3 FA 0.49 0.84 Aea 101.31 575,554 0.18 0.25 31397QRE0 VAR RT 02/25/2041 DD 01/25/11 583,276 0.15 FHLMC 2,798.14 FHLMC POOL#78-6064 1.05 2.22 Asa 103.70 2,730 0.00 0.80 313488WZ3 VAR RT 01/01/2028 DD 12/01/97 2,902 0.00 FNMA 237,564.34 FNMA POOL 00823358 030 2.15 A. 106.80 235,708 0.08 0.86 31406X 5 VAR RT 02/01/2035 DD 04/01/05 253,712 0.07 50,500.16 FNMA POOL#0826080 1.60 4.49 Asa 111.29 54,288 0.02 L83 31407BXH7 5.000%07/01/2035 DD 06/01/05 56,203 0.01 288,675.23 FNMA POOL#0357969 L81 4.50 A. 111.21 310,326 0.10 1.86 31376ET22 5.000%09/01/2035 DD 09/01/05 321,021 0.09 411612015 4:58:36PM EDT 9 Source:The Ba of New York Mellon Corpomfioo Yield Analysis Report ID: RAM234 Face Currency: USD BNY MELLON OCSF07522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 272,698.86 FNMA POOL#0745580 1,84 4.50 Aaa 111.23 293,151 0.09 2.04 31403DJZ3 5.000%06/01/2036 DD 05/01/06 303,323 0.08 372,547.84 FNMA POOL#0466397 1.88 3.16 Are 107.44 364,486 0.12 4.89 31381PDA3 3.400% 11/01/2020 DO 11/01/10 400,262 0.10 551,845.38 FNMA POOL#0888336 1.90 4.50 Aaa 111.20 593,234 0.19 2.20 31410F4V4 5.000%07/01/2036 DD 04/01/07 613,658 0.16 533,541.45 FNMA POOL#0815971 1.91 4.49 Aaa 111.28 573,557 0.18 2.06 31406PQY8 5.000%03/01/2035 DD 03/01/05 593,720 0.15 7,075.56 FNMA POOL#0748678 2.00 4.50 Aaa 111.07 7,606 0.00 2.37 31403GXF4 5.000% 10/01/2033 DD 10/01/03 7,859 0.00 31,508.45 FNMA POOL A0AL0869 2.04 4A3 Aaa 108.97 33,323 0.01 2.83 3138EG6F6 4.500%06/01/2029 DD 09/01/11 34,336 0.01 50,075.59 FNMA POOL#0257179 2.06 4.13 Aaa 109.03 52,960 0.02 3A6 31371NUC7 4.500%04/01/2028 DD 03/01/08 54,599 0.01 50,188.43 FNMA POOL80MA0022 2.08 4.13 Aaa 108.95 53,079 0.02 2.94 31417YAY3 4.500%04/01/2029 DD 03/01/09 54,681 0.01 FREDDIE MAC MOLTICLASS 86,247.75 FHLMC MULTICLASS MTG E3 A 0.82 2.89 Aea 103.76 86,338 0.03 0.69 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 89,492 0.02 900,000.00 FNLMC MULTICLASS MTG X006 A2 1.80 3.84 NR 110.73 951,047 0.31 4.27 31398VJ98 4.251%01/25/2020 DD 04/01/10 996,579 0.26 1,177,398.65 FHLMC MULTICLASS MTG 58 2A 2.66 5.61 Aaa 115.87 1,333,404 0.42 0.33 31394J 35 6.500%09/25/2043 DO 09/01/03 1,364,264 0.35 GNMA 411612015 4:58:36PM EDT 10 Source:The Bur c of New York Melton Corpomtku Yield Analysis Report ID: RAM234 Rase Currency: USD BNY MELLON 0CSF07522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(EOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 114,762.54 GNMA It POOL 00080965 0.53 1.68 Aaa 103.48 114,691 0.04 OA6 36225DCBS VAR RT 07/20/2034 DD 07/01/04 118,752 0.03 37,469.40 GNMA II POOL#080088M 0.76 1.67 Ara 103.98 38,289 0.01 0.43 36225CC20 VAR RT 06/20/2027DD06/01/97 38,959 0.01 13,674.32 GNMA II POOL#0080395 0.83 1.67 Aaa 103.81 13,550 0.00 1.34 36225CNM4 VAR RT 04/20/203ODD04/01/00 14,195 0.00 112,934.48 GNMA II POOL#080408X 0.84 1.67 Aaa 103.79 111,788 0.04 0.46 36225CN28 VAR RT 05/20/203ODD05/01/00 117,219 0.03 31,325.39 GNMA E POOL#0080023 0.91 L68 Aaa 103.31 31,844 0.01 0.84 36225CA 9 VAR RP 12/20/2026 DD 12/01/96 32,362 0.01 GNMA REMIC 58,506.92 GNMA GTD REMIC P/T 00-9 FH 0.04 0.67 Aaa 100.73 58,507 0.02 0.16 3837H4NX9 VAR RT 02/16/2030 58,936 0.02 HOME EQUITY 9,27L38 WELLS FARGO HOME EQUITY 2 M6 -0.93 4.96 Aaa 100.26 9,202 0.00 0.03 94980GAG6 VAR RT 10/25/2034 DD 09/01/04 9,296 0.00 171,460.97 SOUNDWEW HOME LOAN TR OFf3 A4 L 16 0.47 - 99.36 151,368 0.05 0.00 83611MGS1 VAR RT 11/25/2035DD09/30/05 170,355 0.04 133,743.29 AMRESCO RESIDENTIAL SWUM 1 A 1.75 1.02 - 92.26 100,433 0.04 0.00 03215PFN4 VAR RT 06/25/2029 DO 10/20/99 123,394 0.03 DIDUSTR 1,000,000.00 SOUTHERN CO/THE 0.63 2.36 Baal 100.79 999,810 0.31 0.45 842597CGO 2.375%09/15/2015 DD 09/17/10 1,007,930 0.26 411612015 4:58:36PM EDT 11 Source:The Bur c of New York Melton Corpomtku Yield Analysis Report ID: RAM234 Base Currency: USD BNY MELLON OCSM7522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 4,000,000.00 CHEVRON CORP L07 1.10 Aal 100.09 3,977,200 1.24 2.63 166764AA8 1.104% 12/05/2017 DO 12/05/12 4,003,560 1.03 2,000,000.00 INTEL CORP 1.16 1.34 Al 100.50 2,008,290 0.62 2.65 458140AL4 1.350% 12/15/2017 DO 12/11/12 2,010,090 0.52 1,600,000.00 PHILIP MORRIS INTERNATIONAL IN 1.39 5.00 A2 112.98 1,854,144 0.56 2.86 718172AA7 5.650%05/16/2018 DD 05/16/08 1,807,648 0.47 4,000,000.00 ELI LILLY&CO 1.50 1.92 A2 101.71 4,009,675 1.26 3.83 532457BF4 1.950%03/15/2019 DD 02/25/14 4,068,360 1.05 2,000,000.00 OCCIDENTAL PETROLEUM CORD 1.54 L50 A2 99.88 1,986,340 0.62 2.81 674599CD5 1.500%02/15/2018 DD 06/22/12 1,997,560 0.52 2,000,000.00 AMERICAN HONDA FINANCE CORP L84 2.21 Al 101.70 2,019,540 0.63 4.18 02665WAH4 2.250%08/15/2019 DD 09/09/14 2,034,020 0.53 1,300,000.00 AMGEN INC 2.38 3.27 Beal 105.46 1,318,052 0.42 4.99 031162BDI 3.450%10/01/2020 DO 09/16/10 1,371,019 0.35 OTHER CMO GOVT AGENCIES 613,262.91 NCUA GUARANTEED NOTES TR R2 1A G20 0.76 Aaa 100.26 613,260 0.19 0.02 62888UAA8 VARRT 11/06/2017 DD 11/17/10 614,864 0.16 155,329.59 SBA GM PARTN CTFS 2001-20C 1 2.37 5.88 Aea 107.82 155,330 0.05 L94 83162CWO 6.340%03/01/2021 167,476 0.04 STUDENT 48,439.32 SLM STUDENT LOAN TRUST 200 9 A 1.33 1.71 Aaa 102.54 48,243 0.02 0.01 78445JAA5 VAR RT 04/25/2023 DD 08/28/08 49,669 0.01 SUPRANATIONALS 411612015 4:58:36PM EDT 12 Source:The Bur c of New York Melton Corpomtku Yield Analysis Report ID: RAM234 Base Currency: USD BNY MELLON OCSP07522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 5,000,000.00 INTERNATIONAL FINANCE CORP 0,81 1.cc Aaa 100.38 5,020,700 1.55 2.04 45950KBS8 1.000%04/24/2017 DO 04/24/12 5,019,000 1.30 TIPS 0.00 US TREAS-CPI WFLAT 1.56 1.05 Aaa 107.34 0 0.00 4.54 912828PP9 1.125%01/15/2021 DO 01/15/11 0 0.00 3,252,608.00 US TREAS-CPI INFLAT 1.76 0.12 Aaa 101.03 3,260,051 1.02 5.88 912828=0 0.125%07/15/2022 DD 07/15/12 3,286,142 0.85 TRBASURIM 7,500,000.00 U S TREASURY NOTE 0.21 0.37 Asa 100.10 7,510,572 2.32 0.62 912828TX8 0.375% 11/15/2015 DO 11/15/12 7,507,650 1.94 10,000,000.00 U S TREASURY NOTE 0.22 0.25 Aaa 100.02 9,997,299 3.09 0.71 912828UC2 0.250% 12/15/2015 DD 12/15/12 10,002,300 2.59 7,500,000.00 U S TREASURY NOTE 0.23 0.37 Asa 100.13 7,512,916 2.32 0.84 912828B41 0.375%01/31/2016 DD 01/31/14 7,509,375 1.94 3,500,000.00 U S TREASURY NOTE 0.33 0.34 Aaa 100.01 3,500,340 1.08 0.00 912828D31 VAR IT 04/30/2016DD04/30/14 3,500,280 0.90 19,600,000.00 US TREASURY NOTE 0Al 0.50 Aaa 100.13 19,596,172 6.06 1.41 912828D64 0.500%08/31/2016 DD 08/31/14 19,624,500 5.07 15,000,000.00 U S TREASURY NOTE 0.47 0.50 Are, 100.05 14,965,871 4.64 1.66 912828G46 0.500%11/30/2016 DD 11/30/14 15,007,050 3.88 10,000,000.00 U S TREASURY NOTES 0.53 0.50 Aaa 99.94 9,987,924 3.09 1.91 912828,135 0.500%02/28/2017 DD 02/28/15 91993,800 2.58 12,500,000.00 U S TREASURY NOTE 0.77 0.87 Aaa 100.27 12,435,979 3.87 2.59 912828G20 0.875% 11/15/2017 DO 11/15/14 12,533,250 3.24 411612015 4:58:36PM EDT 13 Source:The Bur c of New York Mellon Corpomtku Yield Analysis Report ID: RAm234 Base Currency: USD BNY MELLON OCSFo7522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration 52,900,000.00 U S TREASURY NOTE 1,25 1.60 Aaa 101.56 52,816,985 16.59 4.12 912828WS5 1.625%06/30/2019 DD 06/30/14 53,722,595 13.89 17,400,000.00 U S TREASURY NOTE 1.27 1.60 Aaa 101.50 17,443,113 5.45 4.21 912828WW6 1.625%07/31/2019 DD 07/31/14 17,661,000 4.57 5,800,000.00 U S TREASURY NOTE 1.31 1.72 Aaa 101.91 5,873,187 1.83 4.36 912828F39 1.750%09/30/2019 DD 09/30/14 5,910,548 1.53 7,500,000.00 U S TREASURY NOTE 1.33 1.49 Asa 100.77 7,449,635 2.33 4.52 912828G61 1.500%11/30/2019 DD 11/30/14 7,557,450 1.95 10,237,760.00 US TEEAS-CPI INFLATION INDEXED 1.95 0.13 Aaa 99.96 10,120,476 3.16 7.50 912828WUO 0.125%07/15/2024 DD 07/15/14 10,233,767 2.65 US TAXABLE MUNI BONDS 2,440,000.00 PORT AUTH OF NEW YORK&NEW JE 2.03 4.64 Aa3 114.51 2,507,634 0.86 4.15 73358WAG9 SA09%12/01/2019 DD 07/01/09 2,794,020 0.72 1,400,000.00 NEW YORK CITY NY TRANSITIONAL 2.37 3.74 Aal 108.87 1,400,000 0.47 4.99 64971M5E8 4.075%11/01/2020 DD 11/03/10 1,524,124 0.39 400,000.00 UNIV OF CALIFORNIA CA RUTS MED 2.53 4.41 Aaa 114.10 400,000 0.14 5.31 9133661WS 5.035%05/15/2021 DD 11/18/10 456,400 0.12 1,200,000.00 TEXAS ST TRANSPRTN COMMISSION 2.84 4.26 Aaa 118.16 1,200,000 0.44 T73 88283LHT6 5.028%04/01/2026 DD 08/05/10 1,417,872 0.37 2,500,000.00 ILUNOIS ST TOLL HIGHWAY A= 3.58 4.85 Aaa 109.05 2,464,750 0.84 3.73 452252FJ3 5.293%01/01/2024 DD 05/21/09 2,726,200 0.70 1,300,000.00 MASSACHUSETTS ST PORT AUTH FAC 4.01 5.13 A3 120.88 1,300,000 0.49 8.93 575898CS8 6.202%07/01/2031 DD 06/15/11 1,571,492 0.41 411612015 4:58:36PM EDT 14 Source:The Bauk of New York Melton Corpomtku Yield Analysis Report ID: RAM234 Ease Currency: USD BNY MELLON OCSF07522202 3/31/2015 Long Term Oper-Pimco Units Held YTM/ Current Moody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration TOTAL:F=D INCOME 1.21 1.50 320,823,469 100.00 2.93 322,726,115 TOTAL: Long Term Oper-Pimco 1.05 1.39 383,931,513 100.00 2.49 386,837,T96 411612015 4:58:36PM EDT 15 Source:The BuN of New York Melton Corpom6on Yield Analysis Report 1D: RAM234 i Saw Currency: BNY MELLON OCSF07555502 3/31/2015 O.C.S.Escrow Account Units Held YTM/ Current Mcody's Market Total Cost %Type Option Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj Rating Value Duration CASH &TEMPORARY Sum of Account Receivables - 0.00 SUMRECV 6,739 TOTAL:CASH&TEMPORARY 0.00 0.00 100.00 6,739 FIXED INCOME TREASURIES 3,594,000.00 U S TREASURY NOTE - 0.38 Aua 100.00 3,603,596 99.81 - 912828SK7 0.375%03/15/2015 DD 03/15/12 3,594,000 99.81 TOTAL:F=D INCOME 0.00 0.37 3,603,596 100.00 3,594,000 TOTAL:O.C.S.Escrow Account 0.00 0.37 3,603,596 100.00 3,600,739 411612015 4:58:36PM EDT 16 Source:The Banc of New York Malian Corpomfion ft GLSO i01 Asset Detail Ease c�Reom: USD 13 BNY MELLON by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Coat Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base U.S.DOLLAR CASH 6 CASH EQUIVALENTS CASH -1,449.16 -1,449.16 0.00% 0.00 INTEREST RECEIVABLE 1,131,414.96 1,131,414.96 0.26% 0.00 RECEIVABLE FOR INVESTMENTS 2,264.66 2,264.66 0.00% 0.00 SOLD BANK TOKYO-MITSUB DISC 99.9020 8,500,000.000 8,489,957.53 8,489,957.53 1.93% 0.00 06/29/2015 SEC ID:06538CTV3 FEDERAL HOME LN BK CONS DISC 99.9892 2,000,000.000 1,999,783.34 1,999,783.34 0.45% 0.00 MAT 04/15/2015 SEC ID:313384E34 FEDERAL HOME LN UK CONS DISC 99,9805 10,000,000.000 9,998,053.60 9,998,053.60 2.27% 0.00 MAT 05/0 1120 1 5 SEC ID:313384FA2 FEDERAL HOME LN MM CORP DISC 99.9687 900,000.000 999,718.25 899,718.25 0.20% 0.00 MAT 04/01/2015 SEC ID:313396DU4 FEDERAL HOME LN MTG CORP DISC 99.9704 1,000,000.000 999,704.44 999,704.44 0.23% 0.00 MAT 07/23/2015 SEC ID 313396JM6 FEDERAL HOME LN MTG CORP DISC 99,9417 2,000,000.000 1,998,833.12 1,998,833.12 0.45% 0.00 0.000%09/28/2015 DD 08/28/14 SEC ID:313396KZ5 FEDERAL HOME LN MM CORP DISC 99.9319 10,000,000,000 9,993,194.40 9,993,194.40 2.27/6 0.00 0.000%09/11/2015 DD 09/11/201 SEC ID:313396LP6 FEDERAL NATL MTG ASSN DISC 99.9607 9,800,000.000 9,796,146.69 9,796,146.69 2.23% 0.00 0.000%G4/16/2015 DD 04/21/201 SEC M:313588EK7 FEDERAL NATL MTG ASSN DISC 99.9423 10,000,000.000 9,994,233.30 9,994,233.30 2.27% 0.00 0.000%09/01/2015 DD 9/08/2014 SEC ID:313588LD5 PNC BANK N A DISC 99.7203 7,50g000.000 7,479,020.83 7,479,020.83 1.70% 0.00 09/02/2015 SEC ID:69349KW22 TOYOTA MTR CR CP DISC 99.8628 1,000,000.000 998,627.50 998,627.50 0.23% 0.00 08/11/2015 SEC ID:89233HVB7 TOYOTA MTR CR CP DISC 99.8628 2,000,000.000 1,997,255.56 1,997,255.56 0.45% 0.00 09/04/2015 SEC ID:892331HW42 411612015 4:51:09PM EDT 1 Workbench i� Asset Detail Base c�R om: BAD 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base DREYFUS TREAS&AGY CSH CSH MG 100.0000 11177175240 11,199,175.24 11,199,175.24 2.54% 0.00 VAR RT 12/31/2049 DD 04/09/97 SEC ID:996085247 SLH PROXY LONG EXPOSURE 0,4225 1M,812.500 104,812.50 44,283.28 0.01% -60,529.22 SLHOPNTA4 SEC ID:99WAEU30 TOTAL CASH&CASH EQUIVALENTS 75,991,987940 77,OSS,746.76 76,998,217.64 17.50% -60,529.22 FIXED INCOME SECURITIES AFLAC INC 101.0160 500,000.000 499,630.00 505,080.00 0AI% 5,450.00 3.450%08/15/2015 DO 08/09/10 SEC ID:001055AE2 AMERICAN EXPRESS CO 115.5320 2,900,000.000 3,377,385.79 3,350,428.00 0.96% -26,957.79 7.000%03/19/2018 DO 03/19/08 SEC ID:025816AYS AMERICAN HONDA FINANCE CORP 101.7010 2,000,000.000 2,019,540.00 2,034,020.00 0.46% 14,480.00 2.250%08/15/2019 DO 09/09/14 SEC ID:02665WAH4 AMGEN INC 105.4630 1,300,000.000 1,318,052.00 1,371,019.00 0.31% 52,967.00 3.450% 10/01/2020 DO 09/16/10 SEC ID:03116213131 AMRESCO RESIDENTIAI,SECURI 1 A 92.2620 133,743.290 100,432.85 123,394.23 0.03% 22,961.38 VAR RT 06/25/2029 DD 10/20/99 SEC ID:03215PFN4 BANK OF AMERICA CORP 110.0350 3,800,000.000 4,334,014.00 4,181,330.00 0.95% -152,684.00 5.750% 12/01/2017 DO 12/04/07 SEC Ul:060505DM BANK OF AMERICA NA 99.8300 wL000.000 600,000.00 598,980.00 0.140A -1,020.00 VAR RT 05/08/2017 DO 05/08/14 SEC M:06050TLX8 BEAR STEARNS COS LLC/THE 108.9130 3,200,000.000 3,523,520.00 3,485,216.00 0.79% -38,3(lCOO 4.650%07/02/2018 DO 06/25/03 SEC ID:093902CD8 CATERPILLAR INC 100.1630 1,000,000.000 1,003,280.00 1,001,630.00 0.23% -1,650.00 0.950%06/26/2015 DD 06/26/12 SEC ID: 149123BY6 CATERPILLAR FINANCU,L SERVICES 100.1480 1,000,000.000 1,003,340.00 1,001,480.00 0.23% -1,860.00 1.100%05/29/2015 DO 05/30/12 SEC ID: 14912L5D9 CHASE ISSUANCE TRUST AS A5 100.0490 4,000,000.000 4,001,406.25 4,001,960.00 0.91% 553.75 0.590%OS/15/201Y DO 09/13/12 SEC ID: 16157IFL3 411612015 4:51:09PM EDT 2 Workbench i� Asset Detail Base c�R om: osn 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Cost market Value % of Gain/Lou Description Base Shares Par Be" Base Total Base CHEVRON CORP 100,0890 4,000,000.000 3,977,200,00 4,003,560.00 0.91% 26,360.00 1.104% 12/05/2017 DD 12/05/12 SEC ID: 166764AA8 CHIGROUP INC 100.2770 200,000.000 198,352.00 200,554.00 0.05% 2,202.00 1.250%01/15/2016 DD 01/10/13 SEC ID: 172967GGO COSTCO WHOLESALE CORP 100.1320 1,000,000.000 1,001,340.00 1,001,320.00 0.23% -20.00 0.650% 12/07/2015 DD 12/07/12 SEC ID:22160KAD7 JOHN DEERE CAPITAL CORP 100.1310 1,008,000.000 1,009,340.64 1,009,320.48 0.23% -20.16 0.700%09/04/2015 DO 09/07/12 SEC ID:24422ERV3 JOHN DEERE CAPITAL CORP 102.1020 1,200,000.000 1,204,956.00 1,225,224.00 0.28% 20,268.00 2.300%09/16/2019 DD 09/15/14 SEC ID:24422ESS9 FEDERAL FARM CR BE CONS BD 100.7720 2,000,000.000 2,021,180.00 2,015,440.00 0.46% -5,740.00 1.500% 11/16/2015 DD 1 t/15/10 SEC ID:31331J2S1 FEDERAL HOME LN BE CONS BD 100.6720 1,500,000.000 1,515,240.00 1,510,080.00 0.34% -5,160.00 1.750%09/11/2015 DO 09/04/10 SEC ID:313370JB5 FEDERAL HOME LN BE CONS BD 101.2240 7,500,000,000 7,544,850.00 7,591,800.00 1.73% 46,950.00 1.375%03/09/2018 DD 02/13/12 SEC ID:313378A43 FEDERAL HOME LN BE CONS BD 100.1740 2,000,000.000 2,003,320.00 2,003,480.00 0.460/6 160.00 0.500% 11/20/2015 DD 08/23/12 SEC m:31338OL96 FEDERAL FARM CR BK CONS BD 100.0810 2,000,000.000 2,003,400.00 2,001,620.00 0.46% -1,780.00 0.500%06/23/2015 DD 05/23/12 SEC M:3133EARQ3 FHLMC MULTICLASS MTG E3 A 103.7610 86,247.750 86,337.96 89,49L53 0.02% 3,153.57 VAR RT 08/15/2032 DD 12/01/97 SEC M 3133ME95 FHLMC POOL#78-6064 103.6970 2798140 2,729.95 2,901.59 0.00% 17L64 VAR RT 01/01/2028 DD 12/01/97 SEC m:313488W23 FEDERAL NATL MTG ASSN 100.0610 2,000,000.000 2,002,740.00 2,001,220.00 0.45% -1,520.00 0.500%05/27/2015 DD 04/19/12 SEC M:3135G0KM4 FEDERAL NATL MTG ASSN 100.0880 2,000,000,000 2,003,408.00 2,001,760.00 0.46% -1,648.00 0.500%07/02/2015 DD 05/21/12 SEC 3135GOLN1 411612015 4:51:09PM EDT 3 Workbench ft GLS0 i01 Asset Detail Base c�Rencmy: USD 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Coat Market Value % of Gain/Lou Description Base Shares Par Base Base Total Base FEDERAL NATL MTG ASSN 101,6040 5,000,000.000 5,021,500.00 5,080,200.00 1.15% 58,700.00 1.750%09/12/2019 DO 07/28/14 SEC ID:3135GOZG1 FNMA POOLN0257179 109.0330 50,075.590 52,959.83 54,598.92 0.01% 1,639.09 4.500%04/01/2028 DD 03/01/08 SEC ID:31371NUC7 FNMA POOL#0357969 111.2050 298,675.230 310,325.88 321,021.29 0.07% 10,695.41 5.000%09/01/2035 DO 09/01/05 SEC ID:31376ET22 FEDERAL HOME LN MTG CORP 100,0190 2,000,000.000 2,002,184.00 2,000,380.00 0.45% -1,804.00 0.500%04/17/2015 DO 02/21/12 SEC ID:3137EADD8 FEDERAL HOME LN MTG CORP 99.8230 5,000,000.000 4,967,500.00 4,991,150.00 1.13% 23,650.00 0.750%01/12/2018 DD 11/21/12 SEC ID:3137EADN6 FEDERAL HOME LN MTG CORP 99.8390 5,000,000.000 4,974,100.00 4,991,950.00 1.13% 17,850.00 0.875%03/07/2018 DO 01/17/13 SEC ID:3137EADP1 FEDERAL HOME LN MTG CORP 99,8280 5,000,000.000 4,991,050.00 4,991,400.00 1.13% 350.00 0.500%01/27/2017 DO 01/16/15 SEC M:3137EADU0 FNMA POOL#0466397 107.4390 372,547,840 364,485.68 400,26L67 0.09% 35,775.99 3.400% 11/01/2020 DD 11/01/10 SEC ID:31381PDM FNMA POOL A0AL0869 108.9730 31,508.450 33,323.28 34,335.70 0.01% 1,012.42 4.500%06/01/2029 DO 09/01/11 SEC m:3138EG6F6 FHLMC MULTICLASS MTG 58 2A 115.8710 1,177,399.650 1,333,403.95 1,364,263.59 0.31% 30,859.64 6.500%09/25/2043 DO 09/01/03 SEC M:31399 35 FNMA GTD REMIC P/T 07-114 A6 98.7250 198,879,400 189,184.03 196,343.69 0.04% 7,159.66 VAR RT 10/27/2037 DD 11/30/07 SEC M:31396X3Q5 FNMA GTD REMIC P/T t t-3 FA 101.3100 575,734A70 575,554.26 583,276.29 0.13% 7,722.03 VAR RT 02/25/2041 DD 01/25/11 SEC M:31397QRE0 FEDERAL NATL MTG ASSN 100.8470 2,000,000.000 2,025,660.00 2,016,940.00 0.46% -8,720.00 2.000%09/21/2015 DD 09/21/10 SEC M:31398A3r7 FHLMC MULTICLASS MTG X006 A2 110.7310 900,000.000 951,046.88 996,579.00 0,23% 45,532.12 4.251%01/25/2020 DD 04/01/10 SEC M 31398VJ98 411612015 4:51:09PM EDT 4 Workbench ft GLS0 i01 Asset Detail Base c�Rencmy: USD 13 BNY MELLON by Currency Mtemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0745580 111,2300 272,698.860 293,151,26 303,322.94 0.07% 10,171.68 5.000%06/01/2036 DD 05/0I/06 SEC ID:31403Wn FNMA POOL#0748678 111.0660 7,075.560 7,606.23 7,858.54 0.00% 252.31 5.000% 10/01/2033 DD 10/01/03 SEC ID:31403GXF4 FNMA POOL#0815971 111.2790 533,541.450 573,557.06 593,719.59 0.13% 20,162.53 5.000%03/01/2035 DO 03/01/05 SEC ID:31406PQY8 FNMA POOL#0823358 106,7970 237,564.340 235,708.37 253,711.59 0.06% 18,003.22 VAR RT 02/01/2035 DD M/01/05 SEC ID:31406 5 FNMA POOL 00826080 111.2930 50,500.160 54,287.67 56,203A4 0.01% 1,915.47 5.000%07/01/2035 DD 06/01/05 SEC ID:31407BXH7 FNMA POOL#0888336 111.2010 551,845.380 593,233.79 613,657.58 0.14% 20,423.79 5.000%07/01/2036 DO 04/01/07 SEC ID:31410F4V4 FNMA POOL#0MA0022 108,9510 50,188.430 53,079.15 54,680.80 0.01% 1,601.65 4.500%04/0 112029 DD 03/01/09 SEC ID:31417YAY3 GE EQUIPMENT TRANSPORTATI I A3 100.1410 2,955,000,000 2,954,564.14 2,959,166.55 0.67% 4,602.41 1.280%02/25/2019 DO 03/04/15 SEC ID:36164EAC9 GNMA II POOL#0080023 103.3100 31,325.390 31,844.22 32,362.26 0.01% 518.04 VAR RT 12/20/2026 DO 12/01/96 SEC ID:36225CA 9 GNMA 11 POOL#080088M 103.9750 37,469.400 38,289.06 38,958.81 0.01% 669.75 VAR RT 06/20/2027 DD 06/01/97 SEC ID:36225CC20 GNMA II POOL#080408X 103.7940 112,934,480 111,787.50 117,219.21 0,03% 5,431.71 VAR RT 05/20/2030 DO 05/01/00 SEC M 36225CN28 GNMA II POOL#0080395 103.8080 13,674.320 13,550.38 14,195.04 0.00% 644.66 VAR RT 04/20/2030 DD 04/01/00 SEC M:36225CNM4 GNMA II POOL#0080965 103.4760 114,762.740 114,691.03 118,751.89 0.03% 4,060.86 VAR RT 07/20/2034 DD 07/01/04 SEC M:36225DCB8 GENERAL ELECTRIC CAPITAL CORP 100.3030 1,000,000.000 1,005,820.00 1,003,030.00 0,23% -2,790.00 1.625%07/02/2015 DO 07/02/12 SEC ID:36962GSM 411612015 4:51:09PM EDT $ Workbench i� Asset Detail Base c�R om: osn 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Lou Description Base Shares Par Base Base Total Base GENERAL ELECTRIC CAPITAL CORP 101,1030 5,000,000.000 5,014,950,00 5,055,150.00 1.15% 40,200.00 2.200%01/09/2020 DO 01/09/15 SEC ID:36962G7MO GOLDMAN SACHS GROUP INC/THE 99.9730 2,000,000.000 1,895,068.00 1,999,460.00 0.45% 1Og392.00 VAR RT 03/22/2016 DO 03/22/06 SEC ID:38141GEG5 GOLDMAN SACHS GROUP INC/THE 111.3470 600,000.000 692,806.00 668,082.00 0.15% -24,724.00 5.950%01/18/2018 DO 01/18/08 SEC ID:38141GFG4 GNMA GTD REMIC P/T 00-9 PH 100.7330 58,506.920 58,506.92 58,935.78 0.01% 429.86 VAR RT 02/16/2030 SEC ID:3837H4NX9 HSBC USA INC 100.0030 3,000,000.000 3,003,290.00 3,000,090.00 0.68% -3,200.00 1.625%01/16/2018 DD 12/20/12 SEC ID:40428HPH9 HONDA AUTO RECEIVABLES 20 1 A3 99.8750 4,000,000.000 3,987,812.50 3,995,000.00 0.91% 7,187.50 0.670% 11/21/2017 DD 02/27/14 SEC ID:43813JAC9 ILLINOIS ST TOLL HIGHWAY AUTH 109,0480 2,500,000.000 2,464,750.00 2,726,200.00 0.62% 261,450.00 5.293%01/01/2024 DO 05/21/09 SEC ID:452252FJ3 INTEL CORP 100.5040 2,000,000,000 2,009,280.00 2,010,090.00 0.46% 1,800.00 1.350% 12/15/2017 DD 12/11/12 SEC ID:458140AL4 INTERNATIONAL BUSINESS MACHINE 100.0400 1,000,000.000 1,001,880.00 1,000,400.00 0.23% -1,480.00 0.750%05/11/2015 DD OS/I1/12 SEC HI:45920OHD6 INTERNATIONAL FINANCE CORP 100.3800 5,000,000.000 5,020,700.00 5,019,000.00 1.14% -1,700.00 1.000%04/24/2017 DO M/24/12 SEC ID:4595OKBS8 JPMORGAN CHASE&CO 100.2420 1,000,000,000 1,002,380.00 1,002,420.00 0.23% 40.00 1.125%02/26/2016 DD 02/26/13 SEC ID:46623EJU4 JPMORGAN CHASE&CO 100.2140 2,000,000.000 1,994,880.00 2,004,280.00 0.460/6 9,400.00 2.250%01/23/2020 DD 01/23/15 SEC HI:46625HKA7 JOHN DEERS OWNER TRUST 20 B A3 100.1880 4,000,000.000 4,001,875.00 4,007,520.00 0.91% 5,645.00 1.070% 11/15/2018 DD 09/03/14 SEC ID:477877AD6 LEHMAN BRTH MD ESC 14.2500 2,000,000,000 1,366,718.96 285,000.00 0.06% -1,081,718.96 0.000% 12/30/2016 DD 10/24/05 SEC ID:525ESCOY6 411612015 4:51:09PM EDT 6 Workbench ft i01 Asset Detail Base c�Rencmy: USD 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ESC LEHMAN BRTH HLD ESCROW 14,3750 600,000.000 406,604,83 86,250.00 0.02% -320,354.83 0.000%01/24/2013 DO 01/22/08 SEC ID: 525ESCIB7 ELI LILLY&CO 101.7090 4,000,000.000 4,009,675.00 4,068,360.00 0.92% 58,685.00 1.950%03/15/2019 DO 02/25/14 SEC ID:532457BF4 MASSACHUSETTS ST PORT AUTH FAC 120.8840 1,300,000.000 1,300,000.00 1,571,492.00 0.36% 271,492.00 6.202%07/01/2031 DO 06/15/11 SEC ID:575898CSS BANK OF"ERICA CORP 116.0390 2,800,000.000 3,417,664.00 3,249,092.00 0.74% -168,572.00 6.875% 11/15/2018 DO 11/24/98 SEC ID:590188JN9 MORGAN STANLEY 116.0070 2,800,000.000 3,200,848.00 3,248,196.00 0.94% 47,348.00 5.500%07/28/2021 DO 07/28/11 SEC ID:61747WAL3 MORGAN STANLEY 100.3300 700,000.000 737,361.00 702,310.00 0.16% -35,051.00 6.000%04/28/2015 DD 04/28/08 SEC ID:61747YCE3 NCUA GUARANTEED NOTES TR R2 IA 100.2610 613,262.910 613,260.12 614,863.53 0.14% 1,603.41 VARRT 11/06/2017DDll/17/10 SEC IT:62888UAA8 NCUA GUARANTEED NOTES TR C I Al 100.1090 237,007,680 237,618.72 237,26&02 0.05% -352.70 1.600% 10/29/2020 DO 11/10/10 SEC ID:62888KAA2 NEW YORK CITY NY TRANSITIONAL 108.8660 1,400,000.000 1,400,000.00 1,524,124.00 0.35% 124,124.00 4.075% 11/01/2020 DD 11/03/10 SEC M:64971M5E8 OCCIDENTAL PETROLEUM CORP 99.8780 2,000,000.000 1,986,340.00 1,997,560.00 0.45% 11,220.00 1.500%02/15/2018 DD 06/22/12 SEC ID:674599CD5 PHILIP MORRIS INTERNATIONAL IN 112.9780 1,600,000,000 1,854,144.00 1,807,&1&00 0.41% -46,496.00 5.650%05/16/2018 DO 05/16/08 SEC ID:718172AA7 PORT AUTH OF NEW YORK Is NEW JE 114.5090 2,440,000.000 2,507,633.89 2,794,019.60 0b4% 286,385.71 5.309% 12/01/2019 DO 07/01/09 SEC m:73358WAG9 SLM STUDENT LOAN TRUST 200 9 A 102.5380 48,439.320 48,242.79 49,668.71 0.01% 1,425.92 VAR RT 04/25/2023 DO 08/28/08 SEC ID:78445JAA5 CHARLES SCHWAB CORP/THE 100.2280 1,000,000,000 1,002,700.00 1,002,280.00 0.23% -420.00 0.850%12/04/2015 DO 12/06/12 SEC ID:808513AH8 411612015 4:51:09PM EDT 7 Workbench i� Asset Detail Base c�R om: osn 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Coat Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base SIMON PROPERTY GROUP LP 110,6890 1,000,000.000 996,050-00 1,106,890-00 0.25% 110,840.00 4.375%03/01/2021 DD 08/l6/10 SEC ID:828807CF2 SBA GM PARTN CTFS 2001-20C 1 107.8200 155,329.590 155,329.59 167,476.36 0.04% 12,146.77 6.340%03/01/2021 SEC ID:83162CWO SOUNDWEW HOME LOAN TR OPTS A4 99.3550 171,460.970 151,367.89 170,355.05 OA4% 18,987.16 VARRT 11/25/2035DD09/30/05 SEC ID:83611MGS1 SOUTHERN CO/THE 100.7930 1,000,000.000 999,810.00 1,007,930.00 0.23% 8,120.00 2.375%09115/2015 DD 09/17/10 SEC ID:842587CGO TEXAS ST TRANSPRTN COMMISSION 118.1560 1,200,000.000 1,200,000.00 1,417,872.00 0.32% 217,872.00 5.028%04/01/2026 DD 08/05/10 SEC ID:88283LHT6 TOYOTA AUTO RECEIVABLES 2 AA3 99.9420 4,000,000.000 3,991,718.75 3,997,680.00 0.91% 5,961.25 0.670% 12/15/2017 DD 03/19/14 SEC ID:89231MAC9 TOYOTA MOTOR CREDIT CORP 100,2540 5,200,000.000 5,200,000.00 5,213,208.00 1.19% 13,208.00 VAR RT 05/17/2016 DD OS/19/13 SEC ID:89236TAK1 TOYOTA AUTO RECEIVABLES 2 A A3 100.3190 3,595,000,000 3,594,456.44 3,606,469.05 0.82% 12,011.61 1.120%02/15/2019 DD 03/04/15 SEC ID:89236WAC2 U S TREASURY NOTE 100.1250 7,500,000.000 7,512,915.75 7,509,375.00 1.91% -3,540.75 0.375%01/31/2016 DD 01/31/14 SEC m:912828B41 U STREASURY NOTE 100.0080 3,500,000.000 3,500,340.41 3,500,280.00 0.80% -60.41 VAR RT 04/30/2016 DD 04/30/14 SEC M:912828D31 U STREASURY NOTE 100.1250 19,600,000,000 19,596,171.88 19,624,500.00 4.46% 28,328.12 0.500%08/31/2016 DD 08/31/14 SEC ID:912828D64 U STREASURY NOTE 101.9060 5,800,000.000 5,873,186.87 5,910,548.00 1.340A 37,361.13 1.750%09/30/2019 DD 09/30/14 SEC m:912828F39 U S TREASURY NOTE 100.2660 12,500,000.000 12,435,979.37 12,533,250.00 2.85% 97,270.63 0.875% 11/15/2017 DD 11/15/14 SEC M:912828G20 U STREASURY NOTE 100.0470 15,000,000,000 14,965,870.56 15,007,050.00 3.41% 41,179.44 0.500% 11/30/2016 DD 11/30/14 SEC M 912828G46 411612015 4:51:09PM EDT $ Workbench i� Asset Detail Base c�R om: osn 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base U S TREASURY NOTE 100,7660 9,500,000.000 7,449,634,50 ],55],450.00 172% 107,815.50 1.500% 11/30/2019 DO 11/30/14 SEC ID:912828G61 U S TREASURY NOTES 99.9380 10,000,000.000 9,987,924.13 9,993,800.00 2.27% 5,875.87 0.500%02/28/2017 DO 02/28/15 SEC ID:912828J35 U S TREASURY NOTE 100.0000 3,594,000.000 3,603,596.33 3,594,000.00 0.82% -9,596.33 0.375%03/15/2015 DO 03/15/12 SEC ID:912828SK9 U STREASURY NOTE 100.0630 2,000,000.000 2,002,506.70 2,001,260.00 0.45% -1,246.70 0.375%06115/2015 DD 06/15/12 SEC ID:912828SM US TREAS-CPI INFLAT 101.0310 3,252,608.000 3,260,050.82 3,286,142.39 0.95% 26,091.57 0.125%07/15/2022 DD 07/15/12 SEC ID:912828MO U S TREASURY NOTE 100.0470 3,500,000.000 3,502,882.82 3,501,645.00 0.80% -1,237.82 0.250%08/15/2015 DD 08/15/12 SEC ID:912828TK6 U STREASURY NOTE 100.1020 11,500,000.000 11,516,991.65 11,511,730.00 2.62% -5,261.65 0.375% 11/15/2015 DD 11/15/12 SEC ID:912828TX8 U S TREASURY NOTE 100.0230 10,000,000,000 9,997,299.13 10,002,300.00 2.27% 5,000.87 0.250% 12/15/2015 DD 12/15/12 SEC ID:912828UC2 U STREASURY NOTE 100.0470 3,500,000.000 3,503,156.26 3,501,645.00 0.80% -1,511.26 0.250%09/30/2015 DD 09/30/13 SEC m:912828VY3 U STREASURY NOTE 101.5550 52,900,000.000 52,816,985.09 53,722,595.00 12.21% 905,609.91 1.625%06/30/2019 DD 06/30/14 SEC M:912828WS5 US TREAS-CPI INFLATION INDEXED 99.9610 10,237,760,000 10,120,475.89 10,233,767.27 2.33% 113,291.38 0.125%07/15/2024 DD 07/15/14 SEC 912828WUO U STREASURY NOTE 101.5000 17,400,000.000 17,443,112.67 17,661,000.00 4.01% 217,887.33 1.625%07/31/2019 DO 07/31/14 SEC m:912828W W6 UNW OF CAMFORNIA CA RUTS MED 114,1000 400,000.000 400,000.00 456,400.00 0.10% 56,400.00 5.035%05/15/2021 DD 11/18/10 SEC M:913366EJ5 WELLS FARGO HOME EQUITY 2 Ale 100.2640 9,271,380 9,201.84 9,295.96 0.00% 94.02 VAR RT 10/25/2034 DD 09/01/04 SEC ID:94980GAG6 411612015 4:51:09PM EDT 9 Workbench ft GLS0 i01 Asset Detail Base c�Reom: Ban 13 BNY MELLON by Currency Altemate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL Bet Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base WELLS FARGO BANK NA 100,1510 6,3G0,000.000 6,297,795,00 6,309,513.00 1.43'6, 11,718.00 0.050%07/20/2015 DD 07/29/13 SEC ID:94985H5F7 WELLS FARGO BANK NA 99.9050 500,000.000 500,000.00 499,525.00 0.11% -415.00 VAR RT 06/15/2017 DO 06/12/14 SEC ID:94988J2L0 TOTAL FIXED INCOME SECUR ITS 359,006,835.790 361,049,243.16 362,901,545.54 82.50% 1,852,302.38 TOTAL ASSETS U.S.DOLLAR 434,989,823.530 438,107,989.92 439,899,763.09 100.00-A 1,791,773.16 TOTAL ASSETS-BASE: 434,988,823.530 438,107,989.92 439,899,763.08 100.00% 1,791,773.16 411612015 4:51:09PM EDT 10 Workbench Transaction Report Report ID: TEB355 BNY MELLON Base Currency: Dan OCSD CONSOLIDATED -OCS000010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base RECEIPTS AND DISBURSEMENT TRANSACTIONS MISCELLANEOUS INCOME U.B.DOLLAR ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT SEC 1D:912828MG SW 3/6/2015 -1,504.000 0.00 -1,504.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/9/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/10/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/11/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/12/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/13/2015 -1,472.000 0.00 -1,472.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/16/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/17/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/18/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/19/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/20/2015 -1,504.000 0.00 -1,504.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/23/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/24/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/25/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/26/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/27/2015 -1,472.000 0.00 -1,472.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/30/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/31/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER 0.00 -12,896.00 0.00 0.00 0.00 0.00 0.001 0.00 T 0.00 C 0.00 8 411612015 5:01:42PM EDT 1 'Pending Settlement Workbench Transaction Report Report ID: TS8355 BNY MELLON Base Currency: USD OCSD CONSOMDATED -OC8G00010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLATION INDEXED SEC ID:912828WUO SW 3/6/2015 -4,680.000 0.00 -4,680.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/9/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/10/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/11/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/12/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/13/2015 -4,680.000 0.00 -4,680.00 0.00 0.00 0.00 0.00 OCSFW522202 OCS LONG CHANDLER SW 3/16/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/17/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/18/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/19/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/20/2015 -4,784,000 0.00 -4,784.00 0.00 0.00 0.00 0.00 OCSF7522202 OCS LONG CHANDLER SW 3/23/2015 -1,560.000 0.00 -1,560.00 0.00 0.09 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/24/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/25/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/26/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/27/2015 -4,680.000 0.00 -4,680.00 0.00 0.00 0.00 0.00 OCSM7522202 OCS LONG CHANDLER SW 3/30/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF7522202 OCS LONG CHANDLER SW 3/31/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER SW 3/31/2015 -8,320.000 0.00 -8,320.00 0.00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER 0.00 -48,984.00 0.00 0.00 0.00 0.00 0.001 0.00 T 0.00 C 0.00 8 TO BRING ACCOUNT INTO BALANCE WITH 03/31/15 SEC HL 912828TEO 411612015 5:01:42PM EDT 2 'Pending Settlement Workbench Transaction Report Report ID: TE8355 BNY MELLON Base Cunene, Dan OCSD CONSOLIDATED -OCSG00030000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base SW 3/31/2015 -2,624.000 0,00 -2,624,00 0,00 0.00 0.00 0.00 OCSF07522202 OCS LONG CHANDLER TOTAL U.B.DOLLAR: 0.00 -64,504.00 0.00 0.00 0.00 0.00 0.001 0.00 T 0.00 C 0.008 TOTAL MISCELLANEOUS INCOME: 0.00 -64,504.00 0.00 0.00 0.00 0.00 0.001 0.00 T 0.00 c 0.00 S TOTAL RECEIPTS AND DISBURSEMENT 0.00 -64,5041.00 0.00 0.00 0.00 0.00 TRANSACTIONS: 0.001 0.00 T 0.00 C 0.00 S PURCHASES CASH Is CASH EQUIVALENTS V.B.DOLLAR BANK OF NEW YORK CASH RESERVE 0.063% 12/31/2049 DD 10/30/08 SEC ID:99WAH408 B 3/2/2015 35,505.110 -35,505.11 35,505.11 0.00 -35,505.11 0.00 0.00 3/2/2015 OCSF07522202 OCS LONG CHANDLER BNY MELLON CASH RESERVE 0.010% 12/31/2049 DD 06/26/97 SEC ID:996087094 B 3/16/2015 2,826.220 -2,826.22 2,826.22 0.00 -2,826.22 0.00 0.00 3/16/2015 OCSF07522202 OCS LONG CHANDLER DREYFUS TREAS&AGY CSH CSH MG VAR RT 12/31/2M9 DD 04/09/97 SEC ID:996085247 B 3/2/2015 136,959.200 -136,959.20 136,959.20 0.00 -136,959.20 0.00 0.00 3/2/2015 OCSM7522202 OCS LONG CHANDLER B 3/3/2015 35,640.660 -35,640.66 35,640.66 0.00 -35,640.66 0.00 0.00 3/3/2015 OCSF07522202 OCS LONG CHANDLER B 3/4/2015 3,528.000 -3,528.00 3,528.00 0.00 -3,528.00 0.00 0.00 3/4/2015 OCSM7511102 OCS LIQ OP CHANDLER B 3/6/2015 3.360 -3.36 3.36 0.00 -3.36 0.00 0.00 3/6/2015 OCSF07522202 OCS LONG CHANDLER B 3/9/2015 2,000,000.000 -2,000,000.00 2,000,000.00 0.00 -2,000,000.00 0.00 0.00 3/9/2015 OCSF07511102 OCS LIQ OP CHANDLER 411612015 5:01:42PM EDT 3 'Pending Settlement Workbench Transaction Report Report ID: T48355 BNY MELLON Base Currency: USD OCSD CONSOLIDATED -OCS000010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base S 3/9/2015 82,589.990 -82,589.99 82,589.99 0,00 -82,589.99 0.00 0.00 3/9/2015 OCSF07522202 OCS LONG CHANDLER H 3/11/2015 13,125,000 -13,125.00 13,125.00 0.00 -13,125.00 0.00 0.00 3/11/2015 OCSM7511102 OCS LIQ OP CHANDLER B 3/11/2015 23,800,000.000 -23,800,000.00 23,800,000.00 0.00 -23,800,000.00 0.00 0.00 3/11/2015 OCSF07522202 OCS LONG CHANDLER B 3/12/2015 43,750.000 -43,750.00 43,750.00 0.00 -43,750.00 0.00 0.00 3/12/2015 OCSM7522202 OCS LONG CHANDLER D 3/16/2015 2,622,472.500 -2,622,472.50 2,622,472.50 0.00 -2,622,472.50 0.00 0.00 3/16/2015 OCSF07511102 OCS UQ OP CHANDLER B 3/16/2015 3,543,056.270 -3,543,056.27 3,543,056.27 0.00 -3,543,056.27 0.00 0.00 3/16/2015 OCSM7522202 OCS LONG CHANDLER H 3/19/2015 101,500,000 -101,500.00 101,500.00 0.00 -101,500.00 0.00 0.00 3/19/2015 OCSF07522202 OCS LONG CHANDLER B 3/20/2015 638,934.380 -638,934.38 638,934.38 0.00 -638,934.38 0.00 0.00 3/20/2015 OCSF07511102 OCS LIQ OP CHANDLER H 3/23/2015 20,000.000 -20,000.00 20,000.00 0.00 -20,000.00 0.00 0.00 3/23/2015 OCSF07511102 OCS LIQ OP CHANDLER B 3/23/2015 5,757.560 -5,757.56 5,757.56 0.00 -5,757.56 0.00 0.00 3/23/2015 OCSF07522202 OCS LONG CHANDLER B 3/24/2015 3,278,956.890 -3,278,956.89 3,278,956.89 0.00 -3,278,956.89 0.00 0.00 3/24/2015 OCSM7522202 OCS LONG CHANDLER B 3/25/2015 120,114.230 -120,114.23 120,114.23 0.00 -120,114.23 0.00 0.00 3/25/2015 OCSF07522202 OCS LONG CHANDLER S 3/27/2015 1,179.310 -1,178.31 1,178.31 0.00 -1,178.31 0.00 0.00 3/27/2015 OCSF07522202 OCS LONG CHANDLER H 3/30/2015 395,949.380 -395,949.38 395,949.38 0.00 -395,949.38 0.00 0.00 3/30/2015 OCSF07511102 OCS LIQ OP CHANDLER B 3/30/2015 41,631.010 -41,631.01 41,631.01 0.00 -41,631.01 0.00 0.00 3/30/2015 OCSF7522202 OCS LONG CHANDLER 411612015 5:01:42PM EDT 4 'Pending Settlement Workbench Transaction Report Report ID: TXS355 BNY MELLON Base Currency: Can OCSD CONSOMDATED -OC8G00010000 3/1/2015 - 3/31/2015 Smtus: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base B 3/31/2015 4,375.000 -4,375,00 4,375,00 0.00 -4,375.00 0.00 0.00 3/31/2015 OCSF00511102 OCS LIQ OP CHANDLER -36,889,521.74 36,869,521.74 0.00 -36,889,521.74 0.00 0.00 0.00I 0.00 T 0.00 C 0.00 8 FEDERAL HOME LN MTG CORP DISC 0,000%08/28/2015 DD 08/28/14 SEC ID:313396E B 3/3/2015 2,000,000.000 -1,998,833A2 1,998,833.12 0.00 -1,998,833.12 0.00 0.00 3/3/2015 OCSF07511102 OCS LIQ OP CHANDLER FEDERAL HOME LN MTG CORP DISC 0.000%09/11/2015 DD 09/11/201 SEC ID:313396LP6 B 3/20/2015 10,000,000.000 -9,993,194.40 9,993,194.40 0.00 -9,993,194.40 0.00 0.00 3/20/2015 OCSFO7522202 OCS LONG CHANDLER FEDERAL HOME LN MTG CORP DISC MAT 07/23/2015 SEC ID:31339WM6 B 3/12/2015 1,000,000.000 -999,904.44 999,904.44 OAO -999,904.44 0.00 0.00 3/12/2015 OCSFO7511102 OCS LIQ OP CHANDLER FEDERAL NATL MTG ASSN DISC 0.000A 09/01/2015 DD 9/08/2014 SEC ID:313588LDS B 3/11/2015 10,000,000.000 -9,994,233.30 9,994,233.30 0.00 -9,994,233.30 0.00 0,00 3/12/2015 OCSF7522202 OCS LONG CHANDLER TOTAL SETTLED U.S.DOLLAR: -59,913,818.33 59,913,818.33 0.00 -59,913,818.33 0.00 0.00 0.001 0.00 T 0.00 C 0.00 S TOTAL SETTLED CASH Is CASH -59,913,818.33 59,913,818.33 0.00 -59,913,818.33 0.00 0.00 EQUIVALENTS: 0.001 0.00 T 0.00 C 0.00 8 FIXED INCOME SECURMIES U.S.DOLLAR AMERICAN HONDA FINANCE CORP 2.250%08/15/2019 DO 09/09/14 SEC ID:02665WAH4 B 3/13/2015 2,000,000.000 -2,019,540.00 2,019,540.00 0.00 -2,019,540.00 0.00 0.00 3/18/2015 OCSF07522202 OCS LONG CHANDLER GE EQUIPMENT TRANSPORTATI 1 A3 1.280%02/25/2019 DD 03/04/15 SEC ID:36164EAC9 411612015 5:01:42PM EDT 5 'Pending Settlement Workbench Transaction Report Report ID: TES355 BNY MELLON Base Currency: USD OCSD CONSOLIDATED -OCSQOOOI0000 3/1/2015 - 3/31/2015 Blame: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base FC 2/24/2015 2,955,000.000 -2,954,564.14 0.00 0.00 -2,954,564.14 0.00 0,00 3/4/2015 OCSF07522202 OCS LONG CHANDLER GENERAL ELECTRIC CAPITAL CORP 2.200%01/09/2020 DD 01/09/15 SEC ID:36962G7MO B 3/11/2015 4,000,000.000 -4,015,560.00 4,015,560.00 0.00 -4,015,560.00 0.00 0.00 3/16/2015 OCSF07522202 OCS LONG CHANDLER INTERNATIONAL FINANCE CORP 1.000%04/2412017 DD 04/24/12 SEC ID:45950EBS8 B 3/16/2015 5,000,000.000 -5,020,700.00 5,020,700.00 0.00 -5,020,700.00 0.00 0.00 3/17/2015 OCSM7522202 OCS LONG CHANDLER JPMORGAN CHASE&CO 1.125%02/26/2016 DD 02/26/13 SEC ID:46623EJU4 B 3/20/2015 1,000,000.000 -1,002,380.00 1,002,380.00 0.00 -1,002,380.00 0.00 0.00 3/25/2015 OCSF00511102 OCS LIQ OP CHANDLER TOYOTA AUTO RECENABLES 2 A A3 1.120%02/15/2019 DD 03/04/15 SEC ID:89236WAC2 PC 2/24/2015 3,595,000.000 -3,594,456.44 0.00 0.00 -3,594,456.44 0.00 0.00 3/4/2015 OCSF07522202 OCS LONG CHANDLER U S TREASURY NOTES 0.500%02/28/2017 DD 02/28/15 SEC ID:912828J35 B 3/30/2015 10,000,000.000 -9,987,924A3 9,987,924A3 0.00 -9,987,924A3 0.00 0.00 3/31/2015 OCSM7522202 OCS LONG CHANDLER TOTAL SETTLED U.B.DOLLAR: .28,595,124.71 22,046,104.13 0.00 -28,595,124.71 0.00 0.00 0.001 0.00 T 0.00 C O.00 S TOTAL SETTLED FIEED INCOME -28,595,124.71 22,046,IG4.13 0.00 -28,595,124.71 0.00 0.00 SECURITIES: 0.001 0.00 T 0.00 C 0.00 S TOTAL SETTLED PURCHASES: -88,508,943.04 81,959,922.46 0.00 -88,508,943.04 0.00 0.00 0.001 0.00 T 0.00 C 0.00 S SALES CASH 3 CASH EQUIVALENTS U.S. DOLLAR 411612015 5:01:42PM EDT 6 'Pending Settlement Workbench Transaction Report Report ID: TE8355 BNY MELLON Base Cunene, USD OCSD CONSOMDATED -OCS000010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base BANK OF NEW YORK CASH RESERVE 0.063% 12/31/2049 DD 10/30/08 SEC ID:99WAH408 S 3/3/2015 -35,505.110 35,505.11 -35,505.11 0,00 35,505,11 0.00 0,00 3/3/2015 OCSM7522202 OCS LONG CHANDLER BNY MELLON CASH RESERVE 0.010% 12/31/2049 DD 06/26/97 SEC ID:996087094 S 3/17/2015 -2,826.220 2,826.22 -2,826.22 0.00 2,826.22 0.00 0.00 3/17/2015 OCSM7522202 OCS LONG CHMIDLER DREYFUS TREAS&AGY CSH CSH MG VAR RT 12/31/2049 DD 04/09/97 SEC ID:996085247 S 3/3/2015 -1,998,813.100 1,998,813.10 -1,998,813.10 0.00 1,998,813.10 0.00 0.00 3/3/2015 OCSM511102 OCS UQ OP CHANDLER S 3/4/2015 -6,549,020.580 6,549,020.59 -6,549,020.58 0.00 6,549,020.59 0.00 0.00 3/4/2015 OCSF07522202 OCS LONG CHANDLER S 3/12/2015 -999,704.440 999,704.44 -999,704.44 0.00 999,704.44 0.00 0.00 3/12/2015 OCSFi 7511102 OCS LIQ OF CHANDLER S 3/13/2015 -9,994,233.300 9,994,233.30 -%994,233.30 0.00 9,994,233.30 0.00 0.00 3/13/2015 OCSF07522202 OCS LONG CHANDLER S 3/17/2015 -5,037,734.890 5,037,734.89 -5,037,734.89 0.00 5,037,734.89 0.00 0.00 3/17/2015 OCSM7522202 OCS LONG CHANDLER S 3/18/2015 -2,023,665.000 2,023,665.00 -2,023,665.00 0.00 2,023,665.00 0.00 0.00 3/18/2015 OCSF07522202 OCS LONG CHANDLER S 3/20/2015 -9,989,677.690 9,989,677.69 -9,989,677.69 0.00 9,989,677.69 0.00 0.00 3/20/2015 OCSF07522202 OCS LONG CHANDLER S 3/25/2015 -1,003,286,250 1,003,286.25 -1,003,286.25 0.00 1,003,286.25 0.00 0.00 3/25/2015 OCSF07511102 OCS LIQ OF CHANDLER S 3/31/2015 -9,941,386.090 9,941,386.09 -9,941,386.09 0.00 9,941,386.09 0.00 0.00 3/31/2015 OCSF07522202 OCS LONG CHANDLER 47,537,521.34 -47,537,521.34 0.00 47,537,521.34 0.00 0.00 nG01 0.00 T 0.00 C 0.00 8 TOTAL SETTLED U.S.DOLLAR: 47,575,852.67 -47,575,852.67 0.00 47,575,852.67 0.00 0.00 0.001 0.00 T 0.00 C 0.00 8 411612015 5:01:42PM EDT 7 'Pending Settlement Workbench Transaction Report Report ID: TXS355 BNY MELLON Base Currency: USD OCSD CONSOLIDATED -OCSG00030000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Coat Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base TOTAL SETTLED CASH&CASH 47,575,852.67 -47,575,852.67 0.00 47,575,852.67 0.00 0.00 EQUIVALENTS: 0.001 0.00 T 0.00 C 0.00 S FIXED INCOME SECURITIES U.S.DOLLAR BAY AREA CA TOLL AUTH TOLL BRI 6.093%04/01/2030 DD 09/Ol/10 SEC ID:072024WS S 3/19/2015 -1,300,000.000 1,665,44300 -1,300,000.00 365,443.00 1,665,443.00 0.00 0.00 3/24/2015 365,443.001 0.00 T OCSM7522202 OCS LONG CHANDLER OAO C 0.00 S NEW YORK NY 5.698%03/01/2029 DD 03/30/10 SEC ID:64966HYK0 S 3/19/2015 -1,300,000.000 1,566,344.00 -1,373,502.00 192,842.00 1,566,344.00 0.00 0.00 3/24/2015 192,842.001 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S TOTAL SETTLED U.S.DOLLAR: 3,231,787.00 .2,673,502.00 558,285.00 3,231,787.00 0.00 0.00 558,285.00 I GOO T 0.00 C 0.00 S TOTAL SETTLED FIXED INCOME 3,231,787.00 -2,673,50a00 558,285.00 3,231,787.00 0.00 0.00 SECURITIES: 558,285.00 I 0.00 T 0.00 C 0.00 8 TOTAL SETTLED SALES: 50,807,639.67 -50,249,354.67 558,285.00 50,807,639.67 0.00 0.00 558,285.00 I 0.00 T OOG c 0.00 S PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S.DOLLAR FHLMC POOL#98-6064 VAR RT 01/01/2028 DD 12/01/97 SEC ID:31348SWZ3 PC 2/1/2015 -15.490 15.49 0.00 0.00 15.49 0.00 0.00 3/16/2015 OCSM7522202 OCS LONG CHANDLER PD 3/1/2015 -15.510 15.51 -15.13 0.38 0.00 0.00 0.00 3/1/2015 0.381 0.00 T OCSF00522202 OCS LONG CHANDLER 0.00 C 0.00 S 15.47 0.00 0.00 15.47 0.00 0.00 O.00 I 0.00 T 0.00 C 0.00 8 411612015 5:01:42PM EDT 8 'Pending Settlement Workbench Transaction Report Report ID: TS8355 BNY MELLON Base Currency: USD OCSD CONSOLIDATED -OCSG00010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base FHLMC MULTICLASS MTG 582A 6,500%09/25/2043 DO 09/01/03 SEC ID:31394JY35 PD 3/1/2015 -5,910.240 5,910.24 -6,693,35 -783.11 5,910,24 0.00 0.00 3/25/2015 -783.111 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FHLMC MULTICLASS MTG E3 A VAR RT 08/15/2032 DO 12/01/97 SEC ID:3133ME95 PD 2/1/2015 -2,610.450 2,610.45 -2,613A8 -2.73 2,610.45 0.00 0.00 3/16/2015 -2.731 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C O.00 S FNMA POOL#0257179 4.500%04/01/2028 DO 03/01/08 SEC ID:31371NUC7 PD 3/1/2015 -252.320 252.32 -266.85 -14.53 252.32 0.00 0.00 3/25/2015 -14.531 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0357969 5.000%09/01/2035 DO 09/01/05 SEC ID:31376=2 PD 3/1/2015 -8,509.510 8,509.51 -9,147.72 -638.21 8,509.51 0.00 0.00 3/25/2015 -638.211 0.00 T OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0466397 3.400%11/01/2020 DO 11/01/10 SEC ID:31381PDM PD 3/1/2015 -7M.220 704.22 -688.98 15.24 704.22 0.00 0.00 3/25/2015 15.241 0.00 T OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0745580 5.000%06/01/2036 DO 05/01/06 SEC ID:31403WM PD 3/1/2015 -6,246.080 6,246.08 -6,714.54 -468.46 6,246.08 0.00 0.00 3/25/2015 -468.461 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C OAO S FNMA POOL#0748678 5.000%10/01/2033 DO 10/01/03 SEC ID:31403GXF4 PD 3/1/2015 -22.030 22.03 -23.68 -1.65 22.03 0.00 0.00 3/25/2015 -1.651 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0815971 5.000%03/01/2035 DO 03/01/05 SEC ID:31406PQYB PD 3/l/2015 -15,312.030 15,312.03 -16,460.43 -1,148.40 15,312.03 0.00 0.00 3/25/2015 -1,148.401 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0823358 VAR RT 02/01/2035 DO 04/01/05 SEC HL 31406 5 PD 3/1/2015 -792.040 792.04 -785B5 6.19 792.04 0.00 0.00 3/25/2015 6.191 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0826080 5.000%07/01/2035 DO 06/01/05 SEC ID:31407BXH7 411612015 5:01:42PM EDT 9 'Pending Settlement Workbench Transaction Report Report ID: TS8355 PINY MELLON Base Currency: can OCSD CONSOLIDATED -OCS000010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base PD 3/l/2015 -710.850 710.85 -764.16 -53,31 710.85 0.00 0.00 3/25/2015 -53.31 I 0.00 T OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0888336 5.000%07/01/2036 DD 04/01/07 SEC ID:31410F4V4 PD 3/1/2015 -16,530.680 16,530.68 -17,770.48 -1,239.80 16,530.68 0.00 0.00 3/25/2015 -1,239.801 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0AL0869 4.500%06/01/2029DD09/01/II SEC ID:3138EG6F6 PD 3/1/2015 -646.210 646.21 -683.43 -37.22 646.21 0.00 0.00 3/25/2015 -37.221 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA POOL#0MA0022 4.500%04/01/2029 DD 03/01/09 SEC ID:31417YAY3 PD 3/1/2015 -1,557.290 1,557.29 -1,646.99 -89.70 1,557.29 0.00 0.00 3/25/2015 -89.701 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA GM REMIC P/T 07-114 A6 VAR RT 10/27/2037 DD 11/30/07 SEC ID:31396X3Q5 PD 2/28/2015 -1,120,600 1,120.60 -1,065.97 54.63 1,120.60 0.00 0.00 3/27/2015 54.631 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S FNMA GTD REMIC P/T 11-3 FA VAR RT 02/25/2041 DD 01/25/11 SEC ID:31397QREO PD 3/25/2015 -14,046.120 14,046.12 -14,041.73 4.39 14,046.12 0.00 0.00 3/25/2015 4.391 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S GNMA GTD REMIC P/T 00-9 FH VAR RT 02/16/2030 SEC ID:3837H4NX9 PD 3/16/2015 -1,788.440 1,788.44 -1,788A4 0.00 1,788.44 0.00 0.00 3/16/2015 OCSF07522202 OCS LONG CHANDLER GNMA H POOL#0080023 VAR RT 12/20/2026 DO 12/01/96 SEC ID:36225CAZ9 PD 3/1/2015 -195.750 195.75 -198.99 -3.24 195.75 0.00 0.00 3/20/2015 -3.241 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S GNMA lI POOL#0080395 VAR RT 04/20/2030 DO 04/01/00 SEC ID:36225CNM4 PD 3/1/2015 -65.180 65.18 -64.59 0.59 65.18 0.00 0.00 3/20/2015 0.591 0,00 T OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S GNMA R POOL#0080965 VAR RT 07/20/2034 DO 07/01/04 SEC ID:36225DCB8 411612015 5:01:42PM EDT 10 'Pending Settlement Workbench Transaction Report Report ID: TS8355 BNY MELLON Base Currency: USD OCSD CONSOLIDATED -OC8G00010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base PD 3/l/2015 -1,161.410 1,16141 -1,160,68 0,73 1,16141 0.00 0.00 3/20/2015 0.731 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S GNMA lI POOL#080088M VAR RT 06/20/2027 DD 06/01/97 SEC ID:36225CC20 PD 3/1/2015 -298.930 298.83 -305.37 -6.54 298.83 0.00 0.00 3/20/2015 -6.541 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S GNMA lI POOL#080408X VAR RT 05/20/2030 DO 05/01/00 SEC ID:36225CN28 PD 3/1/2015 -1,359.540 1,359.54 -1,345.73 13.81 1,359.54 0.00 0.00 3/20/2015 13.811 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S NCUA GUARANTEED NOTES TR Cl Al 1.600% 10/29/2020 DD 11/10/10 SEC ID:62888XAA2 FC 2/27/2015 -35,087,300 35,087.30 0.00 0.00 35,087.30 0.00 0.00 3/2/2015 OCSF07522202 OCS LONG CHANDLER PD 3/27/2015 -41,259.990 41,259.99 -41,366.36 -106.37 41,259.99 0.00 0.00 3/27/2015 -106.371 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S 76,347.29 -41,366.36 -106.37 76,347.29 0.00 0.00 -106.371 0.00 T 0.00 C 0.00 8 NCUA GUARANTEED NOTES TR R2 IA VAR RT 11/06/2017 DD 11/17/10 SEC ID:62888UAA8 PDC 1/5/2015 10,901.190 -10,901.19 10,901.14 -0.05 -10,901.19 0.00 0.00 1/8/2015 -0.05 1 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S PO 1/5/2015 -10,904.550 10,904.55 -10,904.50 0.05 10,904.55 0.00 OAO 1/8/2015 0.051 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S PD 3/5/2015 -8,853.320 8,853.32 -8,853.28 0.04 8,853.32 0.00 0.00 3/9/2015 0.041 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S 8,856.68 -8,856.64 0.04 8,856.68 0.00 0.00 0.041 0.00 T 0.00 C 0.00 S SBA GTO PARTN CTFS 2001-20C 1 6.340%03/01/2021 SEC ID:83162CWO PD 3/1/2015 -23,382.060 23,382.06 -23,382.06 0.00 23,382.06 0.00 0.00 3/2/2015 OCSF07522202 OCS LONG CHANDLER SOUNDVIEW HOME LOAN TR OPT3 A4 VAR RT 11/25/2035 DD 09/30/05 SEC ID:83611MGS1 411612015 5:01:42PM EDT l i 'Pending Settlement Workbench Transaction Report Report ID: TX8355 PINY MELLON Base Cunene, USD OCSD CONSOLIDATED -OCS000010000 3/1/2015 - 3/31/2015 Status: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base PD 3/25/2015 -13,407.960 13,40796 -11,836.72 1,571.24 13,40796 0.00 0.00 3/25/2015 1,571.241 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S WELLS FARGO HOME EQUITY 2 AI6 VAR RT 10/25/2034 DD 09/01/04 SEC ID:94980GAG6 PD 3/1/2015 -15,927.050 15,927.05 -15,807.60 119.45 15,927.05 0.00 0.00 3/25/2015 119.451 0.00 T OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S TOTAL SETTLED U.S.DOLLAR: 217,776.33 -185,480.52 -2,806.96 217,776.33 0.00 0.00 -2,SO6.96 1 0.00 T 0.00 C 0.00 S TOTAL SETTLED FIXED INCOME 217,776.33 -185,480.52 -2,806.96 217,776.33 0.00 0.00 SECURITIES: -2,906.96 I 0.00 T 0.00 C 0.00 S TOTAL SETTLED PRINCIPAL PAYMENTS: 217,776.33 .185,480.52 -2,806.96 217,776.33 0.00 0.00 .2,806.96 I 0.00 T 0.00 C 0.00 S MATURITIES CASH a CASH EQUNALENTS U.B.DOLLAR EXXON CORP DISC 03/16/2015 SEC ID:30229BQG5 MT 3/16/2015 -7,500,000.000 7,499,062.50 -7,499,062.50 OAO 7,499,062.50 0.00 0.00 OCSF07522202 OCS LONG CHANDLER FEDERAL HOME LN MM CORP DISC 0.000%03/11/2015 DO 03/I1/14 SEC ID:313396CX9 MT 3/11/2015 -23,800,000.000 23,794,727.64 -23,794,727.6,1 0.M 23,794,727.6,1 0.00 0.00 OCSF07522202 OCS LONG CHANDLER FEDERAL HOME LN MM CORP DISC MAT 03/09/2015 SEC ID:313396CV3 MT 3/9/2015 -2,000,000.000 1,999,813.34 -1,999,813.34 0.00 1,999,813.34 0.00 0.00 OCSM7511102 OCS UQ OP CHANDLER TOTAL U.S.DOLLAR: 33,293,603.48 -33,293,603.48 0.00 33,293,603.48 0.00 0.0 , 0.001 0.00 T 0.00 c 0.00 S TOTAL CASH Is CASH EQUIVALENTS: 33,293,603.48 -33,293,603.49 0.00 33,293,603.48 0.00 0.00 0.001 0.00 T 0.00 C 0.00 S 411612015 5:01:42PM EDT 12 'Pending Settlement Workbench Transaction Report Report ID: TX8355 BNY MELLON Base Cunene, USD OCSD CONSOLIDATED -OCSG00010000 3/1/2015 - 3/31/2015 Starts: FINAL Trade Date Investment Investment Settle Date Currency Currency Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss Code Settle Date Shares/Par Base Base Base Base Base Base FIXED INCOME SECURITIES U.S.DOLLAR FEDERAL NATL MTG ASSN 0.375%03/16/2015 DD 02/06/12 SEC ID:3135GOHG1 MT 3/16/2015 -2,000,000.000 2,000,000.00 -2,001,040.00 -1,040.00 2,000,000.00 0.00 0.00 OCSF07511102 OCS UQ OP CHANDLER -1,040.001 0.00 T 0.00 C 0.00 S JPMORGAN CHASE&CO 1.875%03/20/2015 DO 03/21/12 SEC ID:46623EJP5 MT 3/20/2015 -633,000.000 633,000.00 -640,292.16 -7,292.16 633,000.00 0.00 0.00 OCSF07511102 OCS UQ OP CHANDLER -7,292.161 0.00 T O.00 C 0.00 S PRAXAIR INC 4.625%03/30/2015 DD 03/07/08 SEC ID:74005PAR5 MT 3/30/2015 -387,000.000 387,000.00 -401,539.59 -14,539.59 387,000.00 0.00 0.00 OCSF07511102 OCS LIQ OP CHANDLER -14,539.59 1 0.00 T 0.00 C 0.00 S UNITEDHEALTH GROUP INC 4.875%03/15/2015 DD 03/07/05 SEC ID:91324PAM4 MT 3/15/2015 -604,000.000 604,000.00 -626,967.92 -22,967.92 604,000.00 0.00 0.00 OCSF07511102 OCS UQ OP CHANDLER -22,967.92 1 0.00 T 0.00 C 0.00 S TOTAL U.S.DOLLAR: 3,624,000W -3,669,839.67 -45,839.67 3,624,000.00 0.00 0.00 -45,839.67 I 0.00 T OOG c O.00 S TOTAL FIXED INCOME SECURITIES: 3,624,000.00 -3,669,839.67 -45,839.67 3,624,000.00 0.00 0.00 -45,839.67 I 0.00 T 0.00 c 0.00 8 TOTAL MATURITIES: 36,917,603.48 -36,963,443.15 4 ,839.67 36,917,603.48 0.00 0.00 -45,939.671 0.00 T 0.00 c 0.00 S GRAND TOTAL ACTIVITY: -565,923.56 -5,502,859.88 509,638.37 -565,923.56 0.00 0.00 509,638.37 I 0.00 T 0.00 c 0.00 8 411612015 5:01:42PM EDT 13 'Pending Settlement Workbench Callan March 31,2015 Orange County Sanitation District Investment Measurement Service Quarterly Review The following report was prepared by Callan Associates Inc. ('CAI") using 'information from sources that include the following: fund truetee(s); fund custodian(s);investment humeri CAI computer software;CAI Investment manager and fund sponsor database;third party data vendors;and other outside sources as directed by the client.CAI assumes no responsibility for the accuracy or completeness of the Iformadon provided,or methodologies employed by any information providers external to CAI.Reasonable care has been taken to assure the accuracy of the CAI database and computer activists.Callan does not provide advice regarding, nor shall Callan be responsible for, the purchase, sale, hedge or holding of individual secum es, including, without limitation securities of the client(i.e.,company stock)or derivadves In the client's accounts.In preparing the follh ing report,CAI has not reviewed the naks of individual security holdings m the conformity of individual security holdings with the client's Investinent policies and guidelines,nor has it assumed any responsibility to do so.Advice pertaining to the merits of individual securities and derivatives should be discussed with a third party secunties expert Copyright 2015 by Callan ASBoaates Inc. Table of Contents March 31, 2015 Capital Market Review 1 Active Management Overview Market Overview 9 Domestic Fixed Income 10 Asset Allocation Investment Manager Asset Allocation 12 Investment Manager Returns 13 Asset Class Risk and Return 17 Manager Analysis Chandler-Long Term Operating Fund 19 Chandler-Liquid Operating Money 23 Callan Research/Education 25 Definitions 30 Disclosures 35 Callan Orange County Sanitation District Executive Summary for Period Ending March 31, 2015 Asset Allocation March 31, 2015 Market Value Weight Domestic Fixed Income Long Tenn Operating Fund' 386,837,796 88.66% Total Fund $436,299,024 100.0% Performance Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^ 0.75% 2.02% 1.22% 2.33% 2.98% Chandler 0.75% - - - - Barclays Govt/Cred 1-5 Year ldx 0.96% 1.99% 1.45% 2.18% 2.69% ML1-5 Govt/Corp 1.00% 2.08% 1.56% 2.25% 2.74% Liquid Operating Monies^ 0.06% 0.14% 0.14% 0.17% 0.43% Chandler 0.06% - - - - Citicrouo3-Month Treasury Bill 0.01% 0.03% 0.05% 0.07% 0.23% Total Fund 0.67% 1.79% 1.09% 1.97% 2.54% Target' 0.80% 1.66% 1.25% 1.81% 2.23% Current Quarter Target=80.0%ML 1.5 QovOCoip and 20.0%3mo T-Bills. AAssets were transfemn!in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO. Recent Developments During the quarter, $58.0 million was withdrawn from the total portfolio. $50.5 million came from the Long Term Operating Fund and $7.5 million from the Liquid Operating Monies. Chandler Asset Management started managing the Long Term Operating Fund and Liquid Operating Monies on 12/1/14. Orga n izati onal Issues N/A Manager Performance Interest rate volatility increased during the first quarter as investors speculated over the timing of the Fed's widely expected interest rate hike while the ECB announced its asset purchase program, which is intended to stimulate growth and combat deflation. The 10-year U.S. Treasury note began the calendar year at 2.17%, hit an intra-quarter low of 1.68% on Callan o,a�9e�umvsaniWfionNsMd Ppn128,2015 January 30', and then a peak of 2.24% on March 6th before closing the quarter at 1.94%, which is 23 bps lower than at year-end. The 30-year Treasury bond hit an all-time low in January of 2.35% and closed the quarter at 2.54%. The yield curve shifted downward and the Barclays Aggregate index returned 1.6%. Investment grade credit performed well during the quarter(Barclays Credit Index: +2.2%)as investors absorbed record issuance. The Long Tenn Operating Portfolio returned 0.75% in the 1" quarter, underperforming the ML 1-5 Govt/Corp Index (+1.00%) and ranking 26' percentile versus peers. Securities were transferred in-kind from PIMCO to Chandler in December of 2014. Chandler is tasked with re-positioning the portfolio in a manner they believe to be consistent with OCSD's objectives. This has resulted in some legacy securities being sold, making a decision to allow some legacy securities to mature, and in some cases consider legacy securities as core holdings of the portfolio. The portfolio is still transitioning making it difficult to assess their relative performance. The Portfolio had less than 30% invested in credit and less than the permitted 20% invested in the combination of asset-backed securities, mortgages, and CMOs as of March 31, 2015 (see page 22). The Liquid Operating Portfolio returned 0.02% (after fees) in the quarter, which was ahead of the return of the 3-Month Treasury Bill (+0.01%). Interest rates remain very low on the short end of the yield curve. The Portfolio returned -0.01% (after fees)for the trailing year. Gordon M. Weightman, CFA Vice President 2 Capital Market Review CALL AN Callan INSTITUTE INVIES MNTS CMR Preview First Quarter 2015 This "Preview" contains excerpts from the upcoming Capital Broad Market Quarterly Returns Market Review (CMR) newsletter, which will be published at the end of the month. U.S.Equity(Russell 3000) —+1.80% Non-U.S.Equily(MSCI ACWI ex USA) — +3.59% Subdued Returns U.S.Fixed(Barclays Aggregate) +1.61% 4,M% — Non-U.S.Fixed(CM Non-U.S.) U.S. EQUITY I Lauren Mathias, CFA Cash(90-Day T-BIIIs) o.00% Sources:6amlays,Cirigroup,Merrill Lynch,MSCI,%sselllm dnom Group The first quarter's ups and downs resulted in only a slight net increase for U.S. equities as represented by the S&P 500 Index (+0.95%). The U.S. economy made some progress—a New Year's Rally drop in gasoline prices fueled consumer spending,an increase in jobs decreased unemployment (5.5%), and fourth-quarter U.S. FIXED INCOME I Nathan Wong, CFA GDP growth was confirmed at a modest 2.2%, albeit down The yield On the 10-year U.S. Treasury note declined for the from a 5.0% pace in the third quarter. Despite this, Fed Chair fifth straight quarter as divergent central bank policies around Janet Yellen remained conservative in her plan to raise interest the globe began to take hold. Long Treasuries again outper- Continued on pg.z formed intermediate Treasuries as rates dropped. High yield The Waiting Game Continued on pg.4 NON-U.S. EQUITY I Matt Lai How Low Can You Go? Markets across the globe shook off a historic oil slump to kick NON.U.S. FIXED INCOME I Kyle Fekete off the year in the black. Individual countries largely advanced in local terms, though pockets of economic unrest left a sharp Currency effects and declining yield curves defined the world's sting in isolated markets. Foreign investors await the arrival bond markets. U.S. dollar-denominated and dollar-hedged of the elusive "recovery" that only the U.S. enjoys for now. securities outperformed their local currency-denominated Market volatility in January and March could not stop a largely counterparts. The Citi Non-U.S. World Government Bond ascendant February forthe MSCIACWI ex USA Index,which Index (Hedged) increased 2.25%, beating its unhedged advanced 3.59% in the first quarter.A shuffle in Health Care equivalent (Citi Non-U.S. World Government Bond Index: sent stocks soaring(+10.63%);Utilities(-4.53%)and commod- -4.36%) by 6.61%. European bonds rallied in the wake of ities-burdened Energy(-4.04%)were the only drag on non-U.S. the ECB's quantitative easing announcement. However, the sectors. Crude oil stayed low,ending March under$50/barel. auro's 11% decline against the U.S. dollar offset gains in Continued on pg.3 Continued on pg.5 Knowledge. Experience. Integrity. U.S. Equity: Subdued Returns Quarterly Performance of Select Sectors Continued from pg. 1 •Russell 1000 •Russell 2000 rates, indicating it will be a slow process. The strengthening 15%: U.S. dollar challenged large multinationals while quantitative 12%, easing in Europe helped bolster economic growth abroad. s%: 7.9% 6%' Though the broad U.S. equity market delivered subdued 3%' z.o% 1a% 0.9% returns, areas of strength persisted. Growth did much better o% IIIIIIIIIN than value with the outperformance of momentum and quality factors and the underperformance of dividend yields.In the first -6%' ' ' ' 4.1% quarter,investors preferred high beta,high growth,and smaller Health care Telecomm Financials utili9es market capitalization companies. Volatility declined and as a Source:Russell Investment Soup result market participants took on more risk. Growth sectors such as Health Care and Technology trumped Large cap stocks trailed this quarter (Russell 1000 Index: value sectors including Financials, Telecommunications, and +1.59%) and growth trounced value (Russell 1000 Growth Utilities. Energy stocks were weak again on the heels of vola- Index: +3.84%; Russell 1000 Value Index: -0.72%). Small tile oil prices. For active investment managers,sector position- (Russell 2000 Index: +4,32%)and mid cap(Russell Mid Cap ing away from defensive areas and into cyclicals paid off. A Index: +3.95%)stocks reclaimed their performance advantage preference for smaller, higher-growth and higher-beta stocks and small cap growth retained its lead on value. Small cap provided an additional tailwind. growth now beats small cap value in all annualized time periods of less than 10 years; beyond that value is on top. Micro cap Rolling One-Year Relative Returns (vs. Russell 1000) could not maintain its strong fourth-quarter performance but still posted a positive return(Russell Microcap Index: +3.14%). •Russell 1000 Gro.Nh •Russell 1000 Value •Russell 1000 30% Small and large cap sectors exhibited much different quarterly results. Large cap Utilities declined substantially while Health 2096 Care—which was a positive contributor to both market ceps— was much stronger in small cap.Utilities companies were pun- ished as the expectations for rising interest rates continued. 0% Atil Merger and acquisition activity was prevalent in the Health Care sector and smaller cap companies benefitted. Energy -1n%----- - ------------------- was the only sector in which both small and large cap declined; -20%________ __________________ _ _ _ _ weakening oil prices hurt oil services and exploration and pro- duction companies.Though large cap trailed small cap overall -30%1,1"I"'I"'I""•"i•• I" „I , 1. ,I.. I" ^ "'I, I•..I 'I"9"'1^9I for the quarter, longer-term returns (one, three, and five years 9596 97 98 99 00 0102I "�0304 05 06 07 08 09 10 11 12 13 1415 Source:Russell lnvestmenlGroup annualized)show large cap outpacing small. 2 I Callan Non-U.S. Equity: The Waiting Game Rolling One-Year Relative Returns(vs.MSCI EAFE U.S. Dollar) Continued from pg. 1 •MSCI Pacific •MSCI Europe a MSCI EAFE The developed MSCI World ex USA Index (+3.83%) beat 40% the MSCI Emerging Markets Index (+2.28%)for the second 30% _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ consecutive quarter. MSCI ACWI ex USA Growth (+4.89%) 20% - - - - - - - - - - - - - - - - - - - - - - - - - _ _ _ _ _ _ _ _ stocks far outpaced MSCI ACWI ex USA Value (+2.24%) 10% _ _ _ _ _ _ _ _ _ _ _ counterparts once again. Small cap stocks provided a healthy o% boost (MSCI ACWI ex USA Small Cap: +4.01%). Canada -10% (-6.04%) continued to smart from the oil slump and ended up -20% as the largest drag on the developed world outside the U.S. -30% _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 969697 Gup 00010203 p ul 060607 ui put 10 /11213 pull 9598 W 95 99 00 O1 02 03 04 OS OB 0] OS OB 10 11 12 13 1415 Europe supplied one of 2015's earliest economic headlines Source:MSCI after a€1.1 trillion stimulus plan was unveiled to thwart defla- tion and reignite growth in the region (MSCI Europe Index: bucking two quarters of contraction. Only Japan's Energy +3.45%). E.U. unemployment continued its marginal slide to names slid into the red (-0.66%), while consumer stocks 9.8% in February (from 9.9% at 2014's end), and the sum's soared (Consumer Discretionary: +10.52%; Consumer 11% fall against the U.S. dollar saw retail soar (Consumer Staples: +16.43%). However, inflation continued to notch Discretionary: +821%). Advances in Health Care research downward and unemployment rates remained volatile. boosted Denmarkto the fore of the developed world (+15.82%). Singapore dipped 1.91%. The U.K. (-0.96%) and Spain (-0.57%) were the only drags on the region, hampered mostly by a strong dollar and weak EM Asia (+5.26%) carried the broad emerging category. Utilities (European Utilities: -8.51%). The focus shifts to the Accelerating infrastructure projects and a raised GDP growth U.K.'s parliamentary elections in May and to ongoing E.U.talks forecast(+6.7% in 2015)sent the Philippines(+10.18%)to first with emerging Greece(more below). place. China advanced 8.12% on solid Information Technology performance (+32.32%) and robust factory activity in March. Keeping with the previous quarter, the MSCI Pacific Index China's picture was slightly marred by ever-increasing hous- trumped Europewith a strong gain of 7.61%.Japan(+10.21%) ing vacancies as well as an anticipated GDP growth rate of 7% led the region, as fourth-quarter 2014 GDP grew 1.5% this year, continuing a worrisome decline. Russia (+18.61%) rebounded from a crushing fourth quarter as oil prices stabilized. Regional Quarterly Performance (U.S.Dollar) At the other end, Greece fell furthest (-29.32%) as Alexis MSCI Japan 10.21% Tsipras's anti-austerity Syriza party swept the nation's January MSCI Mild ex USA 3.93% elections. Soaring debt coupled with troubled talks with E.U. - leadership cast further doubt on its future with the euro zone. MSCI ACWI ex USA -3,59% Significant unrest over President Dims Rousseffs involvement MSCI Europe - 3,45% in the Petrobas scandal hurt Brazil (-14.57%), mirroring a res- MSCI Pacific ex Japan -3.13% five EM Latin America(-9.49%).The MSCI Frontier Markets MSCI Emerging Markets _2.29% Index(-2.93%)echoed the burden of the strong dollar. Source:MSCI Knowledge. Experience. Integrity. I 3 U.S. Fixed Income: New Year's Rally Continued from pg. 1 credit spreads compressed more than investment grade credit an all-time record,as companies took advantage of the low rate spreads, which were largely unchanged during the quarter. environment. On a duration-adjusted basis, Financials outper- The Barclays Aggregate Index climbed 1.61%. formed Industrials and Utilities. Although MBS gained 1.06%, volatility in the 10-year U.S. Treasury led to MBS underpertor- At the end of March, more dovish comments from the Fed on mance of 50 bps against like-duration U.S. Treasuries. High raising the federal funds rate drove yields lower across the yield bonds performed well as investors continued to search for curve.The 2-to 30-year spread tightened from 2.08%at year- yield.The Barclays Corporate High Yield Index rose 2.52%. end to 1.98%. The short end of the curve declined the least with the two-year yield ending 11 bps lower. Returns increased moving farther out along the curve.The 30-year Treasury yield Fixed Income Index Quarterly Returns dropped 22 bps over the quarter and gained 5.05%. Absolute Return Inflation-protected securities gained 1.4% as measured by Send.,Aggregate I— _ Barclays Treasury the Barclays TIPS Index. The 10-year break-even inflation Barclays Agencies ttrA rate ended the quarter at 1.76%, a marginal increase from Barclays cMas the end of 2014. Barclaiii Barclays MBS Corporate credit returns were strong across the rating spectrum. Bardays credit ilex Barclays Gory.High Yield 2.52% The Barclays Corporate Index returned 2.32%. Corporate 0% 1% 2% 3% issuance came at a blistering pace in the first quarter, setting Source:Barclays Historical 10-Year Yields U.S.Treasury Yield Curves •USAO-Year Treasury Yield 010-Year TIPS YIeld *Sreakeyan Inflation Rate • March 31,2015 GDooduber31,2014 •MaIeh31,2014 5% 6% 5% 4% 4% ——————— --———— --------------- 3%__________ 3% _______________ ___________. _ __ _ _ ______ ___ 2%�__ _ _ _ _ _ _ // 2% _ _ _ _ __ _ _ _______________- 1%---------- ____ ------------ 0% 1% OS Ofi 07 OB 09 15 10 11 12 13 16 15 0% Scurce:Bloomberg 0 5 10 15 20 25 30 Maturity(Yours) Scurce:Bloomberg 4 I Callan Non-U.S. Fixed Income: How Low...? Emerging Spreads Over Developed (By Region) Continued from pg. 1 •Emeging Amence, •Emerging EMEA(indse,Middle Eaµii OEm Ming Asla unhedged portfolios. The ECB announced on March 9th that 600 aps it would purchase€l.1 trillion over the next 18 months,includ- ing sovereign and corporate bonds, in order to avert deflation and encourage lending. Rates around the globe continued 400 bps ___ _ _ their descent in spite of record low yields in many countries. German 10-year bunds, the euro zone's proxy for sovereign 200 bpe debt, declined 36 bps to end the quarter at 0.18%-1.76% below comparable U.S. Treasuries. The bond-buying pro- gram also spurred demand for peripheral bonds; Italian 0b, ' ' ' ' ' ' 10 it 12 13 14 15 and Spanish 10-year bond yields declined 68 and 71 bps, Spume:Bamiaya respectively.The threat of a 'Grexit"weighed on investor risk sentiment, but a last-minute agreement on a bridging loan provided a short-term resolution. Greek debt finished the 10-Year Global Government Bond Yields quarter yielding 11.6%. •U.S.Treasury •Germmry ill •Cenaas •Japan The Commonwealth provided investors with attractive spreads 6% relative to other developed markets. The U.K. 10-year yield 5% - - - - - - - - - - - - - - - - - - - - - - - - - - ended the quarter at 1.58% and the Bank of England held 4% _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ rates at a record low for the sixth consecutive year.Australia's a% - -------- - benchmark 10-year yield ended at 2.32%; the yield spread 2%_ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - above Treasuries has declined from 100 bps in the middle of last year to only 40 bps as of quarter end. With the goal of 1% - - - - - - - - - - - - - - - - - - - - - - - - - - spurring growth, Australia out its lending rate to a record low OKI I . . . I . . . i i . . . 11 in February as the country's currency slid 7% against the U.S. 05 06 07 03 09 m 11 12 13 14 15 dollar.The Canadian 10-year yield finished at 1.36%. Change In 10-Year Ylelda from 4Q74 to1Q15 - The Bank of Japan maintained the status quo with near-zero -25 bps U S.Treasury - interest rates and continued debt purchases as revised fourth- IS bps Germany - quarter economic growth figures were too low to avoid contreo- -13 bps U.K. Lion.The Japanese 10-year yield increased 8 bps to 0.41%. 43 bps - Canada Japan _a bps -5011 -0Obps -30bps -20bps -10bps Obps 10bps Within the emerging markets, the dollar-denominated JPM Soama.Bippmbe,y EMBI Global Diversified Index gained 2.01%, while the local currency JPM GBI-EM Global Diversified Index plum- meted3.96%due to overall weakness against the greenback. down more than 40% year-over-year. Fellow BRIC country Russian bonds recovered despite downgrades from Moody's Brazil experienced a deteriorating credit outlook. The coun- and Standard & Poor's at the beginning of the year. Russia's try's local currency bonds fell 15%, hurt by a potential down- local currency-denominated bonds gained 15% but are still grade and a currency that slid 17%versus the U.S.dollar. Knowledge. Experience. Integrity. 5 This"Preview"contains excerpts from the upcoming Capital Market Review(CMR)newsletter,which will be published at the end of the month.The CMR is a quarterly macroeconomic indicator newsletter that provides thoughtful insights on the economy and recent performance in the equity,fixed income,alterna- tives, international, real estate,and other capital markets. If you have any questions or comments,please email institute@callan.com. Editor-in-Chief—Karen Witham Performance Data—Alpay Soyoguz, CFA;Adam Mills Publication Layout—Nicole Silva About Callan Callan was founded as an employee-owned investment consulting farm in 1973. Ever since, we have empowered institutional clients with creative, customized investment solutions that are uniquely backed by proprietary research,exclusive data,ongoing education,and decision support.Today,Callan advises on more than$1.8 trillion in total assets,which makes us among the largest independently owned invest- ment consulting firms in the U.S. We use a client-focused consulting model to serve public and private pension plan sponsors,endowments,foundations,operating funds,smaller investment consulting firms, investment managers,and financial intermediaries. For more information,please visit www.callan.com. About the Callan Investments Institute The Callan Investments Institute, established in 1980, is a source of continuing education for those in the institutional investment community.The Institute conducts conferences and workshops and provides published research,surveys,and newsletters.The Institute strives to present the most timely and relevant research and education available so our clients and our associates stay abreast of important trends in the investments industry. ®2015 Callan Associates Inc. Certain information herein has been compiled by Callan and is based on information provided by a variety of sources believed to he reliable for which Callan has not necessarily verified the accuracy or completeness of or updated.This report Is for Informational purposes only and should not be cons Wed as legal or tax ativlce on any matter.Any Investment decision you make on the basis of this report is your sole responsibility You should consult with legal and tax wall before applying any of this Information to your particular situation.Reference in this report to any product,service or entity should not be construed as a recommendation,approval, of illation or endorsement of such product,service or entity by Callan.Past performance is no guarantee of future results.This report may consist of statements of opinion,which are made as of the date they are expressed and are not statements of fed.The Callan Investments Institute(the"Institute")Is,and will be,the sole owner and copyright holder of all material prepared or developed by the Institute.No parry has the right to reproduce,revise,resell,disseminate extil ly disseminate to subsidiaries or parents,or post on 'internal said sites any part of any materal prepared or developed by the Institute,without the Institule's permission.Institute clients only have nine right to utilize such material internally in their business. 6 Callan Active Management Overview Market Overview Active Management vs Index Returns Market Overview The charts below illustrate the range of returns across managers in Callan's Separate Account database over the most recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in returns across those asset classes.An appropriate index is also shown for each asset class for comparison purposes.As an example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter. The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the domestic equity manager database. Range of Separate Account Manager Returns by Asset Class One Quarter Ended March 31,2015 8% 6% Ps) 58) 4% � (33) E 2% (57) o o% (2%) (4%) (]3) (6%) Domestic Non-US Domestic Non-US Real Cash Equity Equity Fixed Income Fixed Income Estate Equivalents S&P Soo MSCI EAFE Barclays Aggr Bit Citi Non-US Gov NCREIF Index 3 Mon T-Bills 10th Percentile 661 6.54 3.10 �143) 3.86 0.48 25th Percentile 501 5.96 2.28 3.201))' 3.23 0.35 Median 301 5.05 1.69 3.89 2.54 0.20 75th Percentile 1.14 4.11 1.35 4.43 1.58 0.06 90th Percentile (025) 3.28 0]2 4.58 0.84 0.03 Index ♦ 095 4.88 1.61 (4.36) 3.04 0.00 Range of Separate Account Manager Returns by Asset Class One Year Ended March 31, 2015 30% 25% 20% m 150% (3 5)A (53) 1 5% (341� 0% (5%) (10%) (8,) (15%) Domestic Non-US Domesgc Non-US Real Cash Equity Equity Fixed Income Fixed Income Estate Equivalents vs vs vs vs S&P 500 MSCI EAFE Barclays Aggr ed CiU Non-US Gov NCREIF Index 3 Mon T-Bills 10th Percentile 16.55 3.74 9.17 (148) 2240 1.11 25th Percentile 13.87 1.74 6.00 (5.36 1]88 0.81 Median 11.08 0.13 4.29 (896 1305 0.55 75th Percentile 7.81 ((1.75) 2.61 is 43 950 0.23 90th Percentile 3]9 (4.01) 1.26 (9.92 892 0.09 Intlex ♦ 12.73 (0.92) 5.72 (9.82) 12,14 0.03 Callan Orange County Sanitation District B Domestic Fixed Income Active Management Overview Interest rate volatility increased in the list quarter of 2015 as investors speculated over the timing of the Fed's widely expected interest rate hike while the European Central Bank announced a massive asset purchase program to stimulate growth and combat deflation. In the U.S., data suggested that the recovery was losing momentum given headwinds from a harsh winter, a strong dollar and weak global demand. The Barclays U.S. Aggregate Index returned 1.61% for the quarter. Within the Aggregate Index, corporates outperformed like-duration U.S. Treasuries by a modest 27 bps as investors easily absorbed record new issuance. The Mortgage sector returned 1.06%, underperforming US Treasuries, and was the worst performing sector in the Barclays Aggregate. High yield rebounded from a poor 4th quarter with many of the higher quality energy names bouncing back.The Barclays High Yield Index was up 2.52%for the quarter. Longer duration managers outperformed intermediate and short duration strategies in the list quarter as interest rates dropped.The yield curve continued to flatten with long bond yields falling more than short-term yields. The median Extended Maturity manager returned 3.25% while the median Intermediate manager posted a 1.43% return and the median Defensive manager returned 0.66%. Barclays Universal: 1.73% Barclays Aggregate: 1.51% Separate Account Style Group Median Returns Barclays Mortgage t. 1.06% for Quarter Ended March 31, 2015 Barclays High Yield: 2.52% Barclays US TIPS: 1.42% 5% 4% 3.25% 3% ——————————————————————— —————————————— E 2.62% 0 d ofz% 1.43% 1.53% 1.18% 1% ---------- — 0.85% 0.35% 0% Active Defensive Interred Cora Core Extended Active Mortgage High Cash Bond Plus Maturity Duration Backed Yield Barclays Universal: 5.32% Barclays Aggregate: 5.72% Barclays GoSeparate Account Style Group Median Returns Barclays Mortgage'It 5.53% for One Year Ended March 31,2015 Birds,High Yield: 2.00% Barclays US TIPS: 3.11% 20% 15% ----------------------- 15.22% -------------- E 3 10% ----------------------- ______________ f 5.al 5.70% 5.84% 5% —————————————— 3.73% 3.g3% 2.48% 1.40% 0.7Sir 0% Active Defensive Interred Core Core Extended Active Mortgage High Cash Bond Plus Maturity Duration Backed Yield Callan Orange County Sanitation District t0 Asset Allocation Investment Manager Asset Allocation The table below contrasts the distribution of assets across the Fund's investment managers as of March 31, 2015, with the distribution as of December 31,2014.The change in asset distribution is broken down into the dollar change due to Net New Investment and the dollar change due to Investment Return. Asset Distribution Across Investment Managers March 31,2015 December 31,2014 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Long Tema Operating Fund' W6.83],]96 88.66% (50,500,000) 3.297,853 434,039,944 88.40% Licuid OperainkiMonies' 49,461,228 11. 4 ] 1 56929628 11,60% Total Fund $438,299,024 100.0% $(58,000,000) $3,329,452 $490,969,572 1000% 'Chandler replaced PIMCO during the 4U Quarter of 2014,Assets were transferred in-kind as of 12MIM014. Callan Orange County Sanitation District 12 Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods ended March 31, 2015. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. Returns for Periods Ended March 31,2015 Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^ 0.75% 2.02% 1.22% 2.33% 2.98% Chandler 0.75% - - - - Barclays Govt/Cred 1-5 Year Idx 0.96% 1.99% 1.45% 2.18% 2.69% ML 1-5 Govt/Corp 1.00% 2.08% 1.56% 2.25% 2.74% Liquid Operating MoniesA 0.06% 0.14% 0.14% 0.17% 0.43% Chandler 0.06% - - - - CitiarouD 3-Month Treasury Bill 0.01% 0.03% 0.05% 0.07% 0.23% Total Fund 0.67% 1.79% 1.09% 1.97% 2.54% Target* 0.80% 1.66% 1.25% 1.81% 2.23% "Current Quarter Target=80.0% ML 1-5 Govt/Corp and 20.0%3mo T-Bills. AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan orange County 5annation Distract is Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods ended March 31, 2015. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. Returns for Periods Ended March 31,2015 Last Last Last 10 15 19.1/2 Years Years Years Domestic Fixed Income Long Term Operating Fund^ 3.81% 4.41% 4.79% Barclays Govt/Cred 1-5 Year Idx 3.53% 4.28% 4.58% ML 1-5 Govt/Corp 3.56% 4.27% 4.61% Liquid Operating Monies^ 1.66% 2.13% 2.91% CitiarouD 3-Month Treasury Bill 1.41% 1.82% 2.57% Total Fund 3.42% 4.05% 4.51% Target' 3.13% 3.78% 4.21% "Current Quarter Target=80.0% ML 1-5 Govt/Corp and 20.0%3mo T-Bills. AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan orange County sanitation Disvid 14 Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. 12/2014- 3/2015 2014 2013 2012 2011 Domestic Fixed Income Long Term Operating FundA 0.75% 1.98% (1.77%) 3.06% 4.59% Chandler 0.75% - - - - Barclays Govt/Cred 1-5 Year Idx 0.96% 1.42% 0.28% 2.24% 3.14% MIL 1-5 Govt/Corp 1.00% 1.51% 0.32% 2.47% 3.10% Liquid Operating Monie0 0.06% 0.09% 0.13% 0.17% 0.24% Chandler 0.06% - - - - Citigroup3-Month Treasury Bill 0.01% 0.03% 0.05% 0.07% 0.08% Total Fund 0.67% 1.73% (1.49%) 2.70% 3.70% Target* 0.80% 1.21% 0.26% 1.99% 2.49% "Current Quarter Target=80.0% MIL 1-5 Govt/Corp and 20.0%3mo T-Bills. AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan orange County 5annation pistnot is Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. 2010 2009 2008 2007 2006 Domestic Fixed Income Long Term Operating FundA 4.42% 5.52% 5.37% 7.21% 4.41% Barclays Govt/Cred 1-5 Year Idx 4.08% 4.62% 5.12% 7.27% 4.22% MIL 1-5 Govt/Corp 4.17% 4.88% 4.65% 7.27% 4.26% Liquid Operating MoniesA 0.25% 0.58% 2.40% 5.25% 5.05% Citigroup 3-Month Treasury Bill 0.13% 0.16% 1.80% 4.74% 4.76% Total Fund 3.68% 4.65% 4.61% 6.94% 4.60% Target* 3.36% 3.93% 4.08% 6.76% 4.36% "Current Quarter Target=80.0% MIL 1-5 Govt/Corp and 20.0%3mo T-Bills. AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan orange County 5annation oistnot to Asset Class Risk and Return The charts below show the seven year annualized risk and return for each asset class component of the Total Fund.The first graph contrasts these values with those of the appropriate index for each asset class.The second chart contrasts them with the risk and return of the median portfolio in each of the appropriate CAI comparative databases. In each case, the crosshairs on the chart represent the return and risk of the Total Fund. Seven Year Annualized Risk vs Return Asset Classes vs Benchmark Indices 3.0% 2.5% • 2.0% E E N K 0.5% e>ss!w� 0.0% 0.0% 02% 0.4% 0.a% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.6% 2.2% Standard Deviation Seven Year Annualized Risk vs Return Asset Classes vs Asset Class Median 3.0% 2.5% �:Mt 2.0% E E 0 1.5% N K 0.5% 0.0% 0.0% 0.2% 0.4% oe% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.6% 2.2% Standard Deviation Callan orange County sanitation DiWd 1 Manager Analysis Long Term Operating Fund Period Ended March 31, 2015 Investment Philosophy Chandler Asset Management's Short Term Bond strategy is driven by quantitative models and focuses on active duration management, sector selection and term structure. The strategy seeks to achieve consistent above-benchmark returns with low volatility relative to the style's performance benchmark. The firm has a unique focus on high quality fixed income management, and places risk control as a higher objective than return. Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Quarterly Summary and Highlights Quarterly Asset Growth • Long Term Operating Fund's portfolio posted a 0.75%return Beginning Market Value $434,039,944 for the quarter placing it in the 25 percentile of the CAI Net New Investment $-50,500,000 Defensive Fixed-Inc Style group for the quarter and in the 6 percentile for the last year. Investment Gains/(Losses) $3,297,853 • Long Term Operating Fund's portfolio underperformed the Ending Market Value $386,837,796 ML 1-5 GovUCorp by 0.26% for the quarter and underperformed the ML 1-5 Govt/Corp for the year by 0.05%. Performance vs CAI Defensive Fixed-Inc Style(Gross( 6% 5% A((4 AB(6 2 3) B(2 1 4% 1 ( )25)"812 ) 3% 7$9)®813 3 2% (5) BI6 15)�8�11 ( �2)®1% P)I n(8 AR 0% Last Quarter Las[ Last 3 Yean Last 5 Years Last 7 Years Last 10 Years Last 15 Years Last 19-1Q Year Years 101h Percentile 0.93 1.99 2.01 2.68 3.46 3.73 4.38 4,68 25th Percentile 0.75 1.60 1.50 2.04 2.85 3.55 4,17 4,56 Median 0.66 1.40 1.28 1.84 2.36 3.24 3.86 4,28 75th Percentile 0.58 1.23 0.96 1.41 2.01 2.90 3.62 4.05 901h Percentile 0.53 1.03 0.83 1.22 1.72 2.71 3.38 3.95 Long Term Operating Fund •A 0.75 2.02 1.22 2.33 2.98 3.81 4.41 4.79 Barclays G.W(tre5 1-5 Year Mx •B 0.96 1.99 1.45 2.18 2.69 3.53 4.28 4,58 ML 1-5 Gov0Corp ♦ 1.00 2.08 1.56 2.25 2.74 3.56 4.27 4,61 CAI Defensive Fixed-Inc Style(Gross( Relative Return vs ML 1-5 Govt/Corp Annualized Seven Year Risk vs Return 2.0% 4.0% 1.5% _ __ ____________ 3.5% •• m 1.0% � 3.0% 0.5% _ cis . . N 2.5% 0.0% % m 2.0% K (0.5%) __ __________ (1.0%) _ __ __________ _ __ 1.5% (1.5%) 1.0% M08 2009 2010 2011 2012 2013 2014 15 0 1 2 3 4 5 6 Long Term cleating Fund Standard Deviation Callan Orange County sanitation District 19 Long Term Operating Fund Return Analysis Summary Return Analysis The graphs below analyze the managers return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager's ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the managers ranking relative to their style using various risk-adjusted return measures. Assets were transferred in kind to Chandler on 12/112014. Previous performance reflects PIMCO. Performance vs CAI Defensive Fixed-Inc Style(Gross) 20% 15% B A ]®A 1 4+LB ifi�8( ®B( 2)' g! p)50A( 0% 0 ) (5%) (10%) 1W14 W15 2014 2013 M12 2011 2010 2009 2008 2007 2006 101M1 Percentile 0.93 1.58 1.20 4.46 2.]2 4.69 13.]4 6.63 ].03 5.11 25th Pementile 0.]5 1.28 0.80 2.60 2.28 4.01 8.60 5.64 6.88 4.84 Metlian 0.66 1.11 0.65 1.81 1.8] 3.18 5.91 3.75 6.39 4.61 75tM1 Percentile 0.58 0.88 0.41 1.46 1.65 2.73 2.53 (0.1]) 5.66 4.46 80th Percentile 0.53 0.]0 0.31 0.82 1.44 2.42 1.82 (34] 3.75 4.32 Long Term Operating Fund •A 0.75 1.98 (1.77) 3.06 4.59 4.42 5.52 5.37 T21 4.41 Barcays GOWCred 15 Year ldx ■B 0.96 1.42 0.28 2.24 3.14 4.08 4.62 5.12 T27 4.22 ML 1-5 GOWCOT ♦ 1.00 1.51 0.32 2.47 3.10 4.17 4.88 4.65 T27 4.26 Cumulative and Quarterly Relative Return vs ML 1.5 GoWCorp 6% 4% N C J 2% N K gr 0% (2%) K (6%) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15 10 Long Tenn Operating Fund ■Bamlays G Cned 1a Year Idx 0 CAI Defensive F-1 style Risk Adjusted Return Measures vs ML 1.5 GoWCorp Rankings Against CAI Defensive Fixed-Inc Style(Gross) Seven Years Ended March 31,2015 ® ( 1 22.0 .5 3 fA(95) 10 �A(]] ( A16 6] BRO (2) Alpha A98 Tzynor (1 M .5 Inform,ion Sharpe Excess Return io Ratio Ratio Ratio 10tM1 Perwntile 1.1] 4.93 101h Percentile 1.1] 1]3 0.28 25t1,Perwntile 0.86 3.]4 251M1 Percentile 0.81 1.59 0.04 Metlian 0.45 3.19 Median 0.55 1.37 75th Perwntile 0.17 2.]4 751h Percentle 0.20 1.14 to 90tM1 Perwntile 0.00 2.48 901M1 Percentile 0.01 0.99 (0.89 Long Term Long Term Operating Fund •A (0.39) 2.16 Opemtmg Fund eA (0.43) 1.12 0.23 Barclays GOWCreo Barclays GOWCred 1-5 Year Idx e8 (0.15) 2.33 1-5 Year lox eB (0.62) 1.29 (0.17) Callan Orange County sanitation Distiot 20 Long Term Operating Fund Bond Characteristics Analysis Summary Portfolio Characteristics This graph Compares the managers portfolio characteristics with the range of characteristics for the portfolios which make up the manager's style group. This analysis illustrates whether the manager's current holdings are consistent with other managers employing the same style. Fixed Income Portfolio Characteristics Rankings Against CAI Defensive Fixed-Inc Style as of March 31,2015 4.9 3.s 3.o a(4) 2.5 (2) A •(3) (7) 8) 2.0 1.5 (85) 1.0 (48) pe 0.5 0.0 (0.5) (1.0) Avem9e Effective Coupon CA Dundlon Life Yield Rab Convexlty loth Percentile 2.27 2.48 3.20 3.45 0.12 25th Percentile 1.89 2.17 1.63 2.76 0.05 Median 1.78 1.93 1.07 1.91 0.02 75[h Percentile 1.51 1.75 0.91 1.69 0.00 90th Percentile 0.92 1.57 0]7 1.03 (0.22) Long Term Operating Fund • 2.56 3.13 - 1.32 - BamlaysGoWCredl-5Ye ♦ 2.67 2.79 1.08 2.26 0.06 Sector Allocation and Quality Ratings The first graph compares the managers sector allocation with the average allocation across all the members of the manager's style.The second graph compares the managers weighted average quality rating with the range of quality ratings for the style. Sector Allocation Quality Ratings March 31,2015 vs CAI Defensive Fixed-Inc Style > Tray US Thu, '�oE AAq sr.e% -------------- � US RMBS % E AAt (38) is Corp(US$tlenam) z% (38) ♦ AA US ABS % AA- Other A, US Muni A Cash l>% A- welgeled Ave rage US CMBS exa% Quality Raring tie% tOth Percentile AAA US CMOs 250h Percentile AAA Median AA 750h Percentile AA- GovRel(U6$tlenom) ra<% 801h Percentile A 0% 10% 20% 30% 40% 50% 60% 70% 80% Long Term OperLong Fund • AAa 0 Long Term Opemting Furl 0 Barclays 0 Barcays GOWCred 15 CAI Dehnslve Fixed-Inc Style Ye GOWCrsd 1-5 Ye ♦ M+ Callan Orange County Sanitation D'suld 21 Long Term Operating Fund Portfolio Characteristics Summary As of March 31, 2015 Portfolio Structure Comparison The charts below compare the structure of the portfolio to that of the index from the three perspectives that have the greatest influence on return. The first chart compares the two portfolios across sectors. The second chart Compares the duration distribution.The last chart compares the distribution across quality ratings. Sector Allocation US Tray US Trsy 48% 60% US CMOs OmerP44W % 8%US Muni3% USRMBS us6Ae517%% GRel U $tlenom) Cash Cars(US$ %2% Cam Us5denom) USCMBS 25% 17% 1% Long Term Operating Fund Barclays Govt/Credit 1-5 Year Duration Distribution weighted Average: Duration 50% Long Tenn Operveng Fund: 2.58 O Barclays GoWCmdit 1-5 Year: 2.BT p40% ---- ----- ---- ---- ----- ---- -------- 4% 35.9% 0 34.4% d 30% ____ 29.8% ___ __2g. `o 20% ———— ---tn -- ---- ---- ————— 15.4 d 5.8% % 0% o.a% o.a% 0.9% 0.0% 0.0% 0.0% 0.0% 0.0% < 0-1 1-2 2-3 15 5-7 7-10 >10 Years Duration Quality Distribution weghold Average: Quality 100% Long Tenn Operafing Fund: AA+ O Barclays GOWCredlt 1-5 Year: AA+ p80% .eft--------- ——— --- ——— --- --- --- mex `o � 4g% `ry 20% JL O% 0.0% 00% P OY% O.OM 0 0.0% AAA As A Osgas o.o as Box avCCC CCox C o.oxD.ox WR Quality Rating Callan Orange County Sanitation Diauhs 22 Liquid Operating Money Net Period Ended March 31, 2015 Investment Philosophy Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Quarterly Summary and Highlights Quarterly Asset Growth • Liquid Operating Money Net's portfolio posted a 0.02% Beginning Market Value $56,929,628 return for the quarter placing it in the 13 percentile of the MF Net New Investment $-7,500,000 - Money Markel Funds Database group for the quarter and in the 98 percentile for the last year. Investment Gains/(Losses) $31,600 • Liquid Operating Money Net's portfolio outperformed the Ending Market Value $49,461,228 Citigroup 3-Month Treasury Bill by 0.02%for the quarter and underperformed the Citigroup 3-Month Treasury Bill for the year by 0.04%. Performance vs MF-Money Market Funds Database(Net) 3.5% 3.0% (12 2.5% 3y)® 1.5% 43)®(25 30) 1.0% 0.5% 6)®128 0.0% (0.5%) Last Quarter Last Last 3 Yean Last 5 Years Last 7 Years Last 10 Years Laat 15 Years Last 19d1g Year Years 101h Percentile orm 0.08 0.10 0.11 0.42 1.64 2.00 2.78 25th Percentile 0.01 0.02 0.02 0.03 0.30 1.51 1.85 2.63 Median 0.00 0.01 0.01 0.01 0.22 1.38 1.70 2.48 75th Percentile 0.00 0.00 0.01 0.01 0.15 1.26 1.55 2.35 90th Pecentile 0.00 0.00 0.00 0.00 0.10 1.14 1.39 2.18 Liquid Operating Money Net • 0.02 (0.01) nion 0.02 0.28 1.51 1.98 2.75 Citigroup 3-Month Treasury Bill ♦ 0.01 0.03 0.05 0.07 0.23 1.41 1.82 2.57 Relative Returns vs Cumulative Returns vs Citigroup 3-Month Treasury Bill Citigroup 3-Month Treasury Bill 0.14% 0.701 L, d Operating Money Net 0. 2 c 0.601 - Money Market Ftls DB 0.10% - ------------ -- 0.50% - - -- -- --- -- x 0.08% K 0.401 E 0.06% K N 0.201 .� 0.02% ------------ -- 0.10% -- -- to 0: 0.0010.01 - - -- -- ---- -- (0.06%) (0.30%) 7- 2008 2009 2010 2011 2012 2013 2014 15 2008 2009 2010 2011 2012 2013 2014 15 Liquid Operating Money Net Callan Orange County sanitation DistriQ 23 Liquid Operating Money Net Return Analysis Summary Return Analysis The graphs below analyze the managers return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager's ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the managers ranking relative to their style using various risk-adjusted return measures. Assets were transferred in kind to Chandler on 12/112014. Previous performance reflects PIMCO. Performance vs MF-Money Market Funds Database(Net) 6% 5% 50®18 27p�15 4% 3% 2% 60®38 1% 11 14 0% (1%) lwl&W15 2014 2013 M12 2011 2010 2009 "as 2007 2006 101h Percentile 0.04 0.07 0.09 0.19 0.08 0.15 0.53 2.78 5.22 4.95 25th Percentile 0.01 0.02 0.02 0.03 0.03 0.05 0.29 2.46 5.01 4.79 Median 0.00 0.01 0.01 0.01 Oct 0.01 0.12 2.03 4.73 4.53 75th Percentile 0.00 0.00 0.00 0.00 0.00 0.01 0.03 1.46 4.39 4.23 901h Percentile 0.00 0.00 0.00 0.00 0.00 0.00 0.01 1.08 IN 3.87 Liquid Operating Money Net • 0.02 (0.06) (0.02) 0.02 0.09 0.10 0.43 2.25 5.09 4.89 Citigroup 3-Month Treasuryaill ♦ 0.01 0.03 0.05 0.07 0.08 0.13 0.16 1.80 434 4.76 Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill 2.0% 1.6% N E 1.0% 0.5% N > 0.0% (1.0%)- --- ---- ---------- ---- ----- ---- ---- --7 t (1.5%) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15 10 Liquid Opem9ng Money Net Money Market Fde Da Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill Rankings Against MF-Money Market Funds Database(Net) Seven Years Ended March 31,2015 0.25 1.5 0.20 1.0 0.15 0.50i.010 0.05 (30) 2] 0.0 0.00 0.5) (0.05) (i.o) (0.10) 0.5) (0.20) Alpha Traynor (20) Information Sharpe Eaeass Return Ratio Ratio Rage Ratio 10b Percentile 0.19 0.14 101h Percentile 0.66 0.37 OsIr 25th Percentile 0.m 0.03 25th Percentile 0.45 0.10 0.43 Median 0.0011 (((0.N) Median (0.05 0.13) (0.10 75ih Percentlle 0.081 (0.10) ]5th Percen4le (1.19 0.53) (L2] 90th Percentle 0.12 1 901h Percentile (1.56 0.95) (1.53 Liquid Operating Liquid Operating Mon.y .51 0.08 o Cana'l Net a 0.05 0.03 Money Net a 0 1 .56 Orange County 3anilation Deaict 21 Callen Research/Education CALLAN INVE Callan INSTTUMENTS FIRST DTR 2015 Education Research and Educational Programs The Callan Investments Institute provides research that keeps clients updated on the latest industry trends while helping them loam through carefully structured educational programs. Below are the Institute's recent publica- tions—all of which can be found at www.callan.com/research. White Papers ®® 2015 Capital Market Projections Charticle Callan's latest charticle offers a high-level view into how we generate our cap market projection ddff numbers. These projections incorporate advanced quantitative modeling as well as qualitative feedback and the economic expertise of Callan's consulting professionals. Our 2015 numbers - reflect our optimism for the economy,for inflation,and for the capital markets. Global Equity Benchmark Review:Year-end 9/3 012 01 4 This report compares the coverage, characteristics, and risk and return data of more than 40 global equity indices from FTSE, MSCI, and Russell alongside Callan's active manager style groups.Statistics include:portfolio characteristics,sector and country weights,style analysis and --- Z-scores,risk and retum,etc. Countdown to a Better DC Plan Citing results from Callan's annual DC Trends Survey,we explore plan sponsor adoption of PPA =- provisions to see how they have benefited, where they have met challenges, and where they could do more. We also offer seven takeaways to help sponsors better position their plans in 2015 as we approach the decade mark for this legislation. ■® Emerging Managers:Small Firms with Big Ideas In this interview, Callan's Uvan Tsang and Lauren Mathias discuss trends and issues in the emerging manager arena.(Also see our related video:"Manager Trends:Emerging Managers and Minority,Women,and Disabled-owned Firms.") Quarterly Publications DC Observer&Callan DC IndexTM:A quarterly newsletter that offers Callan's observations on a variety of topics per- taining to the defined contribution industry. Each issue is updated with the latest Callan DC IndW- returns. Capital Market Review: A quarterly macroeconomic indicator newsletter that provides thoughtful insights on the economy as well as recent performance in the equity,fixed income, alternatives, international, real estate,and other capital markets. Hedge Fund Monitor.Aquarterly newsletter that provides a current view of hedge fund industry trends and detailed quartedy performance commentary. Private Markets Trends:A seasonal newsletter that discusses the market environment,recent events,performance, and other issues involving private equity. Quarterly Data:The Market Pulse reference guide covers the U.S.economy and investment trends in domestic and international equities and fixed income, and altema0ves. Our Inside Callan's Database report provides performance information gathered from Callan's proprietary database,allowing you to compare your funds with your peers. RealAssets Reporter:Arecurring newsletter that offers Callan's data and insights on real estate and other real asset investment topics. Surveys 2015 Defined contribution Survey This annual survey presents findings from the past year, such as:Around 10% of DC plan i sponsors replaced their target date fund/balanced manager in 2014;Plans that offer potentially lower-cost investment vehicles, such as a collective trust, notably increased in 2014; In 2015 the high priorities for sponsors include participant communication,fund/manager due diligence, compliance,and plan fees. ESG Interest and Implementation Survey _ -— Callan conducted a brief survey to assess the status of ESG, including responsible and - _ sustainable investment strategies and SRI, in the U.S. institutional market. We col- lected responses from 211 U.S. funds representing approximately $1.4 trillion in assets. 2014 Investment Management Fee Survey This survey captures institutional investment management fee payment practices and trends. _ We supplemented survey data(from 72 fund sponsors,$859 billion in assets and 211 invest- - -- ment managers, $15 trillion in AUM)with information from Callan's proprietary databases to establish the trends observed in this report. Callan conducted similar surveys in 2004, 2006, 2009,and 2011. Callan Callan Investments Institute Events Did you miss out on a Callan conference or workshop? If so, you can catch up on what you missed by reading our "Event Summaries"and downloading the actual presentation slides from our website.Our most recent programs: �, ■_ The 2015 National Conference Summary features a synopsis of our speakers: Bowles & Simpson, Maddy Dychtwald,Gary Locke,Daniel Pink,and the 2015 Capital Markets Panel, The Summary also reviews our four workshops:retirement in America,active share,DC plan _ fee landscape, and endowments/foundations. Slide-decks of the conference workshops are also available on our website. _ Our October 2014 Regional Workshop, The Education of Beta, discussed the growing popularity of alternative index strategies.We covered the origins and theories behind these indices, investor implementation choices, and an overview of the smart beta industry fo- cusing on the range of products and future trends. This workshop summary write-up will give you a great synopsis of what our three presenters(Andy Iseri,Jay Kloepfer,and Mike Swinney)covered. Upcoming Educational Programs Please join us at our June 2015 Regional Workshops where we will discuss how recent and pending regulatory and legislative developments are shaping the DC landscape,and how plan sponsors approach their plans.We will show the current environment's impact on usage and implementation of everything from target date funds, alternative investments,company stock,etc.Learn what the future may hold for participants as well as the industry,as sponsor position their plans in light of these fiduciary challenges. Fiduciary Tidal Wave: Navigating DC's Uncharted Waters Facilitators: Rod Bare, Chicago Fund Sponsor Consulting Lori Lucas, CFA, Defined Contribution Consulting Uvan Tsang, CFA, San Francisco Fund Sponsor Consulting Joined by Callan's Chicago/Denver/San Francisco Office Consultants June 17,2015 in Chicago June 18,2015 in San Francisco Workshop is from 9am to 1lam Our research can be found at www.callan.com/research or feel free to contact us for hard copies. For more information about research or educational events, please contact Ray Combs or Gina Falsetto at institute@callan.com or 415-974-5060. Callan Callan Investments Institute Callan COLLEGE" l FIRST OTR 2015 Education The Center for Investment Training Educational Sessions This educational forum offers basic-to-intermediate level instruction on all components of the investment manage- ment process.The"Callan College"courses cover topics that are key to understanding your responsibilities,the roles of everyone involved in this process,how the process works, and how to incorporate these strategies and concepts into an investment program. Listed below are the 2015 dales. An Introduction to Investments July 21-22,2015 In San Francisco October 27-28,2015 in Chicago This one-and-one-half-day session is designed for individuals who have less than two years'experience with institu- tional asset management oversight and/or support responsibilities.The session will familiarize fund sponsor trustees, staff,and asset management advisors with basic investment theory,terminology, and practices. Participants in the introductory session will gain a basic understanding of the different types of institutional fords, including a description of their objectives and investment session structures.The session includes: • A description of the different parties involved in the investment management process, including their roles and responsibilities • A brief outline of the types and characteristics of different plans(e.g.,defined benefit,defined contribution, endowments,foundations,operating fords) • An introduction to fiduciary issues as they pertain to fund management and oversight • An overview of capital market theory,characteristics of various asset classes,and the processes by which fiduciaries implement their investment sessions Tuition for the Introductory"Callan College"session is$2,350 per person.Tuition includes instruction, all materials, breakfast and lunch on each day,and dinner on the first evening with the instructors. Customized Sessions A unique feature of the"Callan College"is its ability to educate on a specialized level through its customized sessions. These sessions are tailored to meet the training and educational needs of the participants,whether you are a plan spon- sor or you provide services to institutional tax-exempt plans. Past customized"Callan College"sessions have covered topics such as:custody,industry trends,sales and marketing,client service,international,fixed income,and managing the RFP process. Instruction can be tailored to be basic or advanced. For more information please contact Kathleen Coal at 415.274.3029 or cunnie@callan.com. Definitions Risk/Reward Statistics The risk statistics used in this report examine performance characteristics of a manager or a portfolio relative to a benchmark (market indicator) which assumes to represent overall movements in the asset class being considered. The main unit of analysis is the excess return, which is the portfolio return minus the return on a risk free asset (3 month T-Bill). Alpha measures a portfolio's return in excess of the market return adjusted for risk. It is a measure of the manager's contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk which was taken for that level of market exposure. Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio's beta measures the expected change in return per 1% change in the return on the market. If a beta of a portfolio is 1.5, a 1 percent increase in the return on the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would also be true. Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency and magnitude of underperformance affect the amount of downside risk. Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is calculated by dividing the manager's annualized cumulative excess return relative to the index by the standard deviation of the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager's active risk/reward tradeoff for diverging from the index when the index is mandated to be the"riskless"market position. Information Ratio measures the manager's market risk-adjusted excess return per unit of residual risk relative to a benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information ratios will add value relative to the benchmark more reliably and consistently. R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of.75 indicates that 75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio's returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no relationship exists between the portfolio's return and the market. Relative Standard Deviation is a simple measure of a managers risk(volatility)relative to a benchmark. It is calculated by dividing the manager's standard deviation of returns by the benchmark's standard deviation of returns. A relative standard deviation of 1,20, for example, means the manager has exhibited 20% more risk than the benchmark over that time period. A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade fixed-income products where actual historical durations are not available. By using this relative risk measure over rolling time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark. Residual Portfolio Risk is the unsystematic risk of a fund,the portion of the total risk unique to the fund(manager)itself and not related to the overall market. This reflects the "bets"which the manager places in that particular asset market. These bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that portfolio. Callan 31 Risk/Reward Statistics Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the 'risk-free" return (usually 3 Month Treasury Bill)from the portfolio return and dividing the resulting "excess return" by the portfolio's risk level (standard deviation).The result is a measure of return gained per unit of risk taken. Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation, however, lies in these two areas: (1)the statistical significance of the denominator,and (2) its reliance on the persistence of skewness in return distributions. Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns,the higher the standard deviation of returns,and the higher the portfolio risk. If returns are normally distributed (is. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within plus or minus one standard deviation from the sample mean. Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two measures of risk: market(non-diversifable or systematic)risk and residual (diversifiable or unsystematic)risk. The purpose of portfolio diversification is to reduce the residual risk of the portfolio. Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a portfolio's individual quarterly or monthly returns from the index's returns. Typically, the lower the Tracking Error, the more "index-like"the portfolio. Traynor Ratio represents the portfolio's average excess return over a specified period divided by the beta relative to its benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk assumed. Note:Alpha,Total Risk,and Residual Risk are annualized. Callan 32 Fixed Income Portfolio Characteristics All Portfolio Characteristics are derived by first calculating the characteristics for each security, and then calculating the market value weighted average of these values for the portfolio. Allocation by Sector- Sector allocation is one of the tools which managers often use to add value without impacting the duration of the portfolio. The sector weights exhibit can be used to contrast a portfolio's weights with those of the index to identify any significant sector bets. Average Coupon-The average coupon is the market value weighted average coupon of all securities in the portfolio. The total portfolio coupon payments per year are divided by the total portfolio par value. Average Moody's Rating for Total Portfolio- A measure of the credit quality as determined by the individual security ratings. The ratings for each security, from Moody's Investor Service, are compiled into a composite rating for the whole portfolio. Quality symbols range from Aaa+ (highest investment quality-lowest credit risk)to C(lowest investment quality- highesl credit risk). Average Option Adjusted(Effective)Convexity-Convexity is a measure of the portfolio's exposure to interest rate risk. It is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally,securities with negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in duration. When a security's duration changes it indicates that the stream of expected future cash-flows has changed, generally having a significant impact on the value of the security. The option adjusted convexity for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Option Adjusted(Effective)Duration- Duration is one measure of the portfolio's exposure to interest rate risk. Generally, the higher a portfolio's duration, the more that its value will change in response to interest rate changes. The option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Price-The average price is equal to the portfolio market value divided by the number of securities in the portfolio. Portfolios with an average price above par will tend to generate more current income than those with an average price below par. Average Years to Expected Maturity- This is a measure of the market-value-weighted average of the years to expected maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Years to Stated Maturity- The average years to stated maturity is the market value weighted average time to stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund paydowns,or prepayments. Current Yield-The current yield is the current annual income generated by the total portfolio market value. It is equal to the total portfolio coupon payments per year divided by the current total portfolio market value. Callan 33 Fixed Income Portfolio Characteristics Duration Dispersion- Duration dispersion is the market-value weighted standard deviation of the portfolio's individual security durations around the total portfolio duration. The higher the dispersion, the more variable the security durations relative to the total portfolio duration ("barbellness"), and the smaller the dispersion, the more concentrated the holdings' durations around the overall portfolio's ("bulletness"). The purpose of this statistic is to gauge the "bulletness" or "barbellness"of a portfolio relative to its total duration and to that of its benchmark index. Effective Yield-The effective yield is the actual total annualized return that would be realized if all securities in the portfolio were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns, expected mortgage principal prepayments,and the exercise of any"in-the-money"imbedded put or call options. Weighted Average Life-The weighted average life of a security is the weighted average time to payment of all remaining principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This amount is then divided by the total amount of principal remaining. Weighted average life is commonly used as a measure of the investment life for pass-through security types for comparison to non-pass-through securities. Callan 34 Disclosures Callan Quarterly List as of March 31, 2015 List of Managers That Do Business with Callan Associates Inc. Confidential—For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe our fund sponsor clients should have a clear understanding of the investment management organizations that do business with our firm. As of 03/31115. Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of the following business units, Institutional Consulting Group, Independent Adviser Group and Fund Sponsor Consulting. Given the complex corporate and organizational ownership structures of investment management firms,parent and affiliate firm relationships are not listed here. The client list below may Include names of parent companies who allow their affiliates to use some of the services included in their client contract leg,educational services including published research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted. Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to Callan by the managers employed by their fund.Per company policy,information requests regarding fees are handled exclusively by Callan's Compliance Department. Clients should also be aware that Callan maintains an asset management division,the Trust Advisory Group(TAG).TAG specializes in the design, implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's AGV Part ZA for a complete listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it oversees. Per company policy these requests are handled by TAG's senior management. Manager Name Educational Services Consulting Services 1607 Capital Partners,LLC Y Aberdeen Asset Management Y Y Acadian Asset Management,Inc. Y Advisory Research Y Affiliated Managers Group Y AllianceBernstein Y Aliens Global Investors U.S.LLC Y Y Allianz Life Insurance Company of North America Y Altrinsic Global Advisors,LLC Y American Century Investment Management Y Analytic Investors Y Apollo Global Management Y AQR Capital Management Y Area Management Y Adel Investments Y Aristotle Capital Management Y Aronson+Johnsen+Ortiz Y Artisan Holdings Atlanta Capital Management Co.,L.L.C. Y Y Aviva Investors Y MA Rosenberg Investment Management Y Babson Capital Management LLC Y Bullies Gifford International LLC Y Y Baits Advisors Y — Bank of America Y Baring Asset Management Y — Baron Capital Management Y BlackRock Y — BMO Asset Management Y BNP Paribas Investment Partners Y BNY Mellon Asset Management Y Y Boston Company Asset Management,LLC(The) Y — Tan I Knowledge.Experience. Integrity. 3/31/15 List of Managers That Do Business with Callan Associates Inc.(continued) Confidential—For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03/31/15, Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of Me following business units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consuting. Given the complex corporate and organizational ownership structures of investment management firths,parent and affiliate firm relationships are not listed here. The client list below may include names of parent companies who allow their affiliates to use some of the services included in their client contract leg,educational services including published research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately centred with Callan. Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted. Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to Callan by the managers employed by their fund.Per company policy,information requests regarding fees are handled exclusively by Callan's Compliance Department. Clients should also be aware that Callan maintains an asset management division,the Trost Advisory Group(TAG).TAG specializes in me design, Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Part 2A for a complete listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it oversees. Per company Policy these requests are handled by TAG's senior management. Manager Name Educational Services Consulting Services Boston Partners Y Y Branded Investment Partners,L.P. Y Y Brandywine Global Investment Management,LLC Y Brown Brothers Harriman&Company Y Cadence Capital Management Y Capital Group Y CastleArk Management,LLC Y Causeway Capital Management Y Central Plains Advisers,Inc. Y Cherwell Investment Partners Y ClearBridge Investments,LLC(&e ClearBddge Advisors) Y Cohen&Steers Y Y Columbia Management Investment Advisers,LLC Y Y Columbus Circle Investors V Y Corbin Capital Partners Y Cornerstone Investment Partners,LLC Y Cramer Rosenthal McGlynn,LLC Y Crawford Investment Council Y Credit Suisse Asset Management Y Centre Investors Y Y Culwater Asset Management Y DS Advisers Y Y DE Shaw Investment Management LLC Y Delaware Investments Y Y DePrince,Race&Zollo,Inc. Y Y Deutsche Asset &Wealth Management Y Y Diamond Hill Investments Y Donald Smith&Co.,Inc. Y DSM Capital Partners Y Duff&Phelps Investment Mgmt. Y Y Eagle Asset Management,Inc. Y EARNEST Partners,LLC V Eaton Vance Management Y Y Epoch Investment Partners Y Fayez Sandi&Company Y Federated Investors Fir Tree Partners Y First Eagle Investment Management Y First State Investments Y Fisher Investments Y Franklin Templeton Y Y Fred Alger Management Co.,Inc. Y Callan I Knowledge.Experience. Integrity. 3131/15 List of Managers That Do Business with Callan Associates Inc.(continued) Confidential—For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03/31/15, Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of Me following business units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consuting. Given the complex corporate and organizational ownership structures of investment management firths,parent and affiliate firm relationships are not listed here. The client list below may include names of parent companies who allow their affiliates to use some of the services included in their client contract leg,educational services including published research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted. Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to Callan by the managers employed by their fund.Per company policy,information requests regarding fees are handled exclusively by Callan's Compliance Department. Clients should also be aware that Callan maintains an asset management division,the Trust Advisory Group(TAG).TAG specializes in me design, Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Part 2A for a complete listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it oversees. Per company Policy these requests are handled by TAG's senior management. Manager Name Educational Services Consulting Services Fuller&Thaler Asset Management Y GAM(USA)Inc. Y Garcia Hamilton &Associates Y GE Asset Management Y Y Geneva Capital Management Y Goldman Sachs Asset Management Y Y Grand-Jean Capital Management Y Y ONO(fka Grantham,Mayo,Van Olterloo&Co.,LLC) Y Great Lakes Advisors, Inc. Y The Guardian Life Insurance Company of America Y Guggenheim Investments Asset Management(&a Security Global) Y The Hampshire Companies Y Harbor Capital Y Hartford Funds Y Hartford Investment Management Co. Y Y Heighbnan Capital Management Corporation Y Henderson Global Investors Y Y Hotchkls&Wiley Y HSBC Global Asset Management Y Income Research&Management Y Insight Investment Management Y Institutional Capital LLC Y INTECH Investment Management Y Invesco Y Y Investec Asset Management Y Jacobs Levy Equity Management Y Janus Capital Group film Janus Capital Management,LLC) Y Y Jensen Investment Management Y J.M.Hartwell Y J.P.Morgan Asset Management Y Y KeyCorp Y Lazard Asset Management Y Y Lee Murder Capital Group Y Legal&General Investment Management Added. Y i Lincoln National Corporation Y Logan Circle Partners,L.P. Y The London Company Y Longview Partners Y Loomis,Sayles&Company,L.P. Y Y Lord Abided&Company Y Los Angeles Capital Management Y LSV Asset Management Y Callan I Knowledge.Experience. Integrity. 3131/15 List of Managers That Do Business with Callan Associates Inc.(continued) Confidential—For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03/31/15, Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of Me following business units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consuting. Given the complex corporate and organizational ownership structures of investment management firths,parent and affiliate firm relationships are not listed here. The client list below may include names of parent companies who allow their affiliates to use some of the services included in their client contract leg,educational services including published research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted. Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to Callan by the managers employed by their fund.Per company policy,information requests regarding fees are handled exclusively by Callan's Compliance Department. Clients should also be aware that Callan maintains an asset management division,the Trost Advisory Group(TAG).TAG specializes in me design, Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Part 2A for a complete listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it oversees. Per company Policy these requests are handled by TAG's senior management. Manager Name Educational Services Consulting Services Lyrical Partners Y MacKay Shields LLC Y Y Man Investments Y Manulfe Asset Management Y Martin Curtis Y Marvin&Palmer Associates, Inc. Y MFS Investment Management Y Y MIdFlrst Bank Y Mondrian Investment Partners Limited Y Y Montag&Caldwell,Inc. Y Y Morgan Stanley Alternative Investment Partners Y Morgan Stanley Investment Management Y Y Mount Lucas Management LP Y Mountain Lake Investment Management LLC Y MUFG Union Bank,N.A. Y Neuberger Berman,LLC(fka,Lehman Brothers) Y Y Newton Capital Management Y Northam Lights Caphal Group Y Northern Trust Global Investment Services Y Y Nuveen Investments Institutional Services Group LLC Y Old Mutual Asset Management Y Y OppenheimerFunds,Inc. Y Pacific Investment Management Company Y Palisade Capital Management LLC Y Paradigm Asset Management Y Parametric Portfolio Associates Y Peregrine Capital Management,Inc. Y Y Philadelphia International Advisors,LP Y PineBridge Investments(formerly AIG) Y Pinnacle Asset Management Y Pioneer Investment Management, Inc. Y PNC Capital Advisors(&a Allegiant Asset Mgmt) Y Poland Capital Management Y Principal Financial Group Principal Global Investors Y Y Private Advisors (♦ Y — Prudential Fixed Income Management Y Prudential Investment Management,Inc. Y Putnam Investments,LLC Y Y Pyramis Global Advisors Y Rainier Investment Management Y RISC Global Asset Management(U.S.)Inc. i(♦ Callan I Knowledge.Experience. Integrity. 3131/15 List of Managers That Do Business with Callan Associates Inc.(continued) Confidential—For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03/31/15, Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of Me following business units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consuting. Given the complex corporate and organizational ownership structures of investment management firths,parent and affiliate firm relationships are not listed here. The client list below may include names of parent companies who allow their affiliates to use some of the services included in their client contract leg,educational services including published research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted. Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to Callan by the managers employed by their fund.Per company policy,information requests regarding fees are handled exclusively by Callan's Compliance Department. Clients should also be aware that Callan maintains an asset management division,the Trost Advisory Group(TAG).TAG specializes in me design, Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Part 2A for a complete listing of TAG's portfolios.We are happy to provide clients with more specifc information regarding TAG,including detail on the portfolios it oversees. Per company Policy these requests are handled by TAG's senior management. Manager Name Educational Services Consulting Services Research Affiliates Y Regions Financial Corporation Y RCM Y Rothschild Asset Management,Inc Y Y RS Investments Y Russell Investment Management Y Sankaty Advisors,LLC Y Santander Global Facilities Y Schroder Investment Management North America Inc. Y Y Scout Investments Y SEI Investments Y SEI%Investment Advisors,Inc. Y Select Equity Group Y Smith Affiliated Capital Corporation Y Smith Graham and Company Y Smith Group Asset Management Y Standard Life Investments Y Standish(ika,Standish Mellon Asset Management) Y State Street Global Advisors Y Stone Harbor Investment Partners,L.P. Y Y Systematic Financial Management Y T.Rowe Price Associates,Inc. Y Y Tapir,Camps&Habacht Y TCW Asset Management Company Y Thompson,Siegel&Walmsley LLC Y UBS Y Y USAA Real Estate Company Y Van Eck Y Victory Capital Management Inc. Y Vontobel Asset Management Y Voya Investment Management Y Y Vulcan Value Partners,LLC Waddell&Reed Asset Management Group Y Y WCM Investment Management Y WEDGE Capital Management Y Wellington Management Company,LLP Y Wells Capital Management Y Western Asset Management Company Y William Blair&Co.,Inc. Y Y Callan I Knowledge.Experience. Integrity. 3131/15 Investment Report Orange County Sanitation District Period Ending March 31 , 2015 6225 Lusk Boulevard I San Diego, CA 92121 1 Phone :00 Table of Contents SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Consolidated Information SECTION 4 Portfolio Holdings a. SECTION 1 Economic Update CAI Economic Update ■ Job growth was weaker than expected in March with nonfarm payrolls up 126,000, well below the consensus forecast of 245,000. The unemployment rate was unchanged at 5.5%, though the labor participation rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected). Unfavorable weather and the strong dollar were likely factors for weak job growth in March. Overall, there is still excess slack in the labor market. Growth in the manufacturing sector has also softened. We believe the strong U.S. dollar and sluggish economic growth abroad has dampened U.S. manufacturing trends. U.S. consumer confidence remains strong, but consumer spending trends have underwhelmed. Housing data remains volatile but the overall trajectory seems positive. There have been pockets of weakness in recent economic data, but some of the factors for this weakness may be transitory(such as unfavorable weather and the West Coast port delays). ■ The Federal Open Market Committee (FOMC) left policy rates unchanged at its March 17-18 meeting, without any dissenting votes. The Committee noted economic activity moderated and the inflation rate declined further. The word "patient' (with regard to the timing of a potential future rate hike) was removed from the policy statement but the Committee indicated a rate hike at the next FOMC meeting in April is unlikely. The Fed left the door open for a possible rate hike in June, but we believe the first rate hike is likely to occur later in the second half of this year. Notably,the Fed expects to see further improvement in the labor market before it starts to raise rates, which implies the Fed remains dissatisfied with current employment conditions. The Committee also needs to be confident inflation will move back to its 2% target, before they raise rates. With inflation low, we believe the Fed faces no urgencyto begin raising rates. Even though the Committee removed the word "patient"from its policy statement, we believe the Fed's overall message was somewhat dovish, which makes a June rate hike unlikely, in our view. We believe ongoing uncertainty about the timing of the Federal Reserve's first interest rate hike will likely continue to fuel market volatility. • The yield curve flattened in March. Domestic economic data has recently softened, and the timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank continues to execute its bond-buying program and other global central banks are pursuing highly accommodative monetary policies. CAI Employment Nonfarm Payroll (000's) Unemployment Rate 450 8.0% 400 7.5% 350 300 7 0% m 250 6.5% bIV 14 0 2 15000 6.0% 100 5.5% 50 5.0% Source:U.S.N da tof Labor Nonfarm payrolls rose by 126,000 in March, well below the consensus forecast of 245,000. February and January payrolls were also revised down a net 69,000. Private payrolls rose by 129,000 in March, while government jobs declined by 3,000. The unemployment rate was unchanged at 5.5%. The labor participation edged down to 62.7% in February from 62.8%. Wages rose 0.3% (higher than expected), following a 0.1% increase in February. On a year-over-year basis, wages rose 2.1% in March versus 2.0% in February. Job growth in weather-sensitive sectors such as construction, and leisure & hospitality, were much weaker in March than in previous months, which suggests unfavorable weather had a significant impact on the overall March nonfarm payroll figure. There was also a sharp decline in manufacturing payrolls in March which may be attributable to the strong U.S. dollar. CAI Consumer Retail Sales Y-O-Y % Change Consumer Credit 6.0% 30 5.0% 25 e 4.0% o_ 20 m 3.0% w 15 2.0% O 0 f G 0% 5 2ij� 9J� Q.j� ¢.j� )p 1�A 2A9 FijF GijF �4F )p' J2' Zjs �F3 ''✓j3 `f'j3 ij3 `p'ju' )mil ij4 y'j4 $'jA i�4 `8'jA 4�1 �j5 3 J 4 A 3 F Source:U 5�Bpartn,ent a/GWnmerce SW2e'Fetlerel Reserve In February, retail sales rose 1.7% on a year-over-year basis, following a 3.6% gain in January. On a month- over-month basis, retail sales declined 0.6% in February (below the consensus forecast for a 0.3% increase) after declining 0.8% in January. Gasoline sales actually rebounded in February after plunging in the prior month. However, auto sales declined 2.5% in February after a 0.5% increase in January. Retail sales have been weaker than expected over the past few months,which is surprising since consumer confidence remains strong. Unfavorable weather may have contributed to the disappointing February retail sales report. Consumer credit rose by $11.6 billion in January (below expectations of $15.0 billion) versus a gain of $17.9 billion in December. Revolving credit(credit cards)expanded by$1.1 billion in January,following a $6.2 billion increase in December. Nonrevolving credit(student and auto loans)increased by$12.7 billion in January. CAI Broad Measures Single-Family Housing Starts Leading Economic Indicators 800 1.2% 700 1.0% 600 0.8% 500 0.6% M e 400 0.6% e 300 0.2% 200 0.0% 100 -0.2% Source.US Dep 'R of C. Sourte:The Canhn;nw BoaN Housing data remains volatile. Single-family housing starts fell 14.9% in February after declining 3.9% in January. Overall housing starts (including single- and multi-family) dropped 17.0% in February, well below expectations. Unfavorable weather may have contributed to the sharp drop in housing starts in February. The index of Leading Economic Indicators (LEI) rose 0.2% in February following a gain of 0.2% in January. Growth of the LEI index has moderated in recent months, but the index remains indicative of modest economic growth. CAI Manufacturing Institute of Supply Management Capacity Utilization Purchasing Manager Index 50.0 80.0% Expanding A 57.5 79.5% 55.0 79.0% 52.5 79.5% 50.0 78,0% 47.5 C.nt.ding 77.5% 45.0 77.0% Sources:lnedWe hr Sup*Management Sov F E &Reserve During March, the ISM manufacturing index declined to 51.5 from 52.9 in February. The March reading continued to signal ongoing expansion (albeit less robust expansion) in the manufacturing sector. A reading above 50.0 is viewed as expansionary in the manufacturing sector,while a reading below 50.0 suggests contraction. Capacity utilization, which is production divided by capacity, declined to 78.9% in February from 79.1% in January. The capacity utilization rate is lower than the long-run average of 80.1% (1972-2014). CAI Inflation CPI Y-O-Y % Change Core CPI Y-O-Y % Change 2.5% 2.5% 2.0% 2.0% 0% 1.5% 0.5% 0.0% -0.5% 0.5% ?i� Rid 4i� a" u' Source:US Oepa nfolLsbo In February, overall Consumer Price Index (CPI) inflation was flat on a year-over-year basis after being down 0.1% in January. Headline inflation has fallen sharpy in recent months due to a precipitous decline in energy prices. The year-over-year Core CPI (CPI less food and energy) increased slightly to 1.7% in February from 1.6% in January. CAI Gross Domestic Product GDP Quarterly % Change 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% Sourte: U.S Oepa nt&Co me Real annualized GDP growth for the fourth quarter of 2014 was 2.2% (unchanged from the second estimate) compared to 5.0% in the third quarter. CAI Interest Rates Yield on the Two-Year Note March 2013 through March 2015 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% W7 Sij �-' 0ij u' 3 u' 3 Sauice:Bbombery The yield on the two-year Treasury note decreased in March. Domestic economic data has recently softened, and the timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank continues to execute its bond-buying program and other global central banks are pursuing highly accommodative monetary policies. CAI Yield Curves December 31, 2014 and March 31, 2015 —1W31114 �3/31I15 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% d o 70 1?0 Sourm:BlaorriGeig During the past three months, the yield curve flattened. Concerns about weak global economic growth kept downward pressure on longer US Treasury yields, even as the Fed signaled the possibility of a fed funds rate hike this year. SEA ?` ) d Account Profile sip � CAI Objectives Investment Objectives The investment objectives of the Orange County Sanitation District are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. Chandler Asset Management Performance Objective Liquid Operating Monies—will be compared to the 3-month T-Bill rate and operate with a maximum maturity of one year. Long-Term Operating Monies—will be compared to the Bank of America Merrill Lynch 1-5 Year Corporate Government Rated AAA—A Index. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. CAI Compliance C.N Orange County Sanitation District Long Term March 31,2015 COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance a th Slate la nand with the invesenentpolicy Category Standard Comment Treasurylssues 5yeam maximum maturity Does net comply' Supranational "AA"or better by of 3 NRSROx 30%mammum; 5%max; 5 Complies are maWri Includes oN . ADS.IBRD and IFC per CGC U.S.Agendas 20%max issuer, 5 years maximum maturity Complies U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs; 30%maximun; Does rot comply' 5%max issuer; 5 We.max maturity Muriel pal Securities "A"orhigherbylof3NRSROS;10%maximum; 5%maxissuer; Doesnotcompy 5yearismaiddrundinatunly Asset Backed/CMOs/ "AA"or better by of 3 NRSROs; "A"or higher issuer rating by l Doesnotcomply` Mortgage-backed of3NRSROs; 20%maximum; 5%maxissuer(excludioe MBS/ oNagency);5 are max maturity Negotiable CDs "A"or better on its long term debt by l of 3 NRSROs; "Al/P1"or Complies highest short learn ratings by 1 of 3 NRSROs; 30%maximum;5% max issuers were max maturi CDs/MS 5%max issuer; 5we.max maurity Complies Bankers Acceptances A-1,or equivalent highest start term rating by l of 3 NRSROS; Complies 40%maximum' S%max issuer,130 days max maturity Commercial Paper A-1.or equivalent by l of 3 NRSROS; "A"or better by l of 3 Complies NRSROs,if long term debt issued; 25%maximum; 5%max issuer, 270 days max maturity Money Market Fund Highestratingby2of3NRS110s; 20%maximvm10%maxissuer Complies Repurchase Agreements 102%vollateralimtion Compliea Reverse Repurchase 5%maximum,90 days max maturity Cowlies A reement LAIF Not used by investment adviser Complies JAW Duration Nolto exceed 60 months - (80%to 120%of the bencinadc) Complies Maximum Maturity 5 years maximum maturity Does not comply' —the p stage has thin igM(30)securities wtlh dsaWnties grainer than 5 years including oco(2)ABS,Nres(3)CMOs,MenlyAhnes(23)MBS,five (5)municipals,three(3)conceal and two(2)t easunce, All of three securities were inhented foods the preaous manager. "Thee are ha,O)ABS,IMee C)CMO and all bearyahree(23)PASS positions with matudtlea stairs years. Additionally,SVHE(CUSIP SM11MGS1)is raved A+/A respectively by S&P eM Ftich whereas tM palicy requires AA or lduer by an least one NRSRO, lh¢e securities xere InMnted frcm pridaws deal CAI Account Profile Portfolio Characteristics Orange County Sanitation District Long Term 03/31/2015 12/31/2014 Benchmark* Portfolio Portfolio Average Maturity(yrs) 2.72 3.13 2.67 Modified Duration 2.58 2.56 2.12 Average Purchase Yield n/a 1.20 % 0.95 % Average Market Yield 0.93 % 0.91 % 0 82 % Average Quality** AAA AA+/Aa1 AA+/Aa1 Total Market Value 386,427,669 433,591,892 BAML 1-5 Yr US Coiponde/Gov Rated AAA-A Index Benchmad,is a blendetl rating of S&P,Moody's,and Fach.Portfolio is S&P and Moodys respediwly. Many securities were purchased across the Treasury, Agency, Asset Backed, Commercial Paper, and Corporate sectors of the market to continue the process of repositioning the portfolio to be more consistent with the 1-5 year benchmark. Eight securities were sold and fifteen matured to facilitate the additions to the portfolio. In late January$50.5 million was withdrawn from the portfolio. CAI Sector Distribution Orange County Sanitation District Long Term March 31, 2015 December 31, 2014 us Municipal Corpaaa± Bonds 16.9% 3.8% us suprona1.3% \ Money / 110 8%� 3% Markel Municipal Fund Bonds FI 2.8% Money MBS Market 1.3% Fund S - Commercial MB 4 Paper 8.2% Commercial us us Paper Treasury cM0 -Trwury 4.3% 47.7% 0.6% 38.1% cM0 0.6% Agency boy 27l% 17.6% ASS ABS 6.9% 0.1 The sector allocation evolved as the Chandler team worked to reposition the portfolio. The Treasury, Asset Backed, and Corporate allocations all increased by 9.6%, 5.1%, and 5.8% to 47.7%, 16.9%, and 5.9% of the portfolio, respectively. The Agency allocation declined by 10.2% to 17.5% of the portfolio, primarily due to the large number of maturing discount notes. CAI Issuers C/" Orange County Sanitation District Long Term Issuer Report Account#10268 As M W3112015 Govemmeni of United!States US Tmasury 47.74% Federal Hnme I. .Mnngage Corp Agency 6.4796 Federal Notional Mor pal Asseeladon Agency 6.44% Federal Home Loan Bank Agency 4.55% Bsnk of Amedca Corp US Corporate 2.12% f.y ns ABS ABS 1.97% Bank of Tokyo-MIt UFJ Commercial Paper 1.94% PNC Financial SeMem Group Commercial Paper 1.81% Wells Fargo Corp US Corporate 1.76% Drefus Treasury MMKT FU 521 Money Market Fund FI 1.75% JP Morgan Chase&Co US Corporate 1.43% Toyda Motor Corp US Corporate 1.35% General Electric Co US Corporate 1.31% International Finance Corp Supranad.rial 1.30% Eli Lilly&Co US Corporate 1.05% Chevmn'rexaco Corp US Corporate L04% John Been,ABS ABS 1.04% JP Morgan ABS ABS L04% Hord.ABS ABS 1.03% Morgan Stanley US Corpoam 1.03% Areerinn Express Credit US Corporate 0.87% Federal National Modguge Assoclanon MBS 0.85% HSBC USA Corp US Corporate 0.78% General Eleculc ABS ABS 0.77% Pod Authority of New York and New Jersey Mudriod Bond 0.73% Illinois St Toll Highway Audionty Municipal Bond 0.71% Goldman Sachs I., US Corporate 0.69% Honda Maur Curperation US Corporate 0.53% Intel Corp US Corporate 0.52% Occidental Pewleum Corporation US Corporate 0.52% Toyym Moron Corp Commercial Paper 0.52% Philip Morris US Corporate 0.48% Massachusem St Pon Authority Municipal Bond 0.42% Quality Distribution Orange County Sanitation District Long Term March 31, 2015 vs. December 31, 2014 100.0% 90.o x eo.o x 70.o x ao.o x 50.o X r0.o x 30.0% 20.0 z m.o x o.o% F:.4 A4 4 to NR 3131/15 12/31114 AAA AA A <A NR 3131115 10.7 % 76.4 % 9.1 % 0.9 % 3.0% 12/31/14 20.1 % 71.4 % 6.9 % 0.8 % 0.8% Source:S&P Ratings C& Duration Distribution Orange County Sanitation District Long Term Portfolio Compared to the Benchmark as of March 31, 2015 35.0•r, 30.0% 25.0% 20.0 15.0 10.0 5.0 0.0%—d[ 1 0-0,25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 5• Portfolio Benchmark' 0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+ Portfolio 12.4% 10.6% 6.6% 17.0% 15.4% 4.1 % 28.3% 5.6% Benchmark' 0.7% 0.2% 4.2% 31.2% 27.3% 21.9% 14.5% 0.0% BAML 1-5 Yr US Comomte/Gov Rated AAA-A Index The duration of the portfolio extended to 2.56 compared to 2.12 at the end of the prior quarter. The Chandler team anticipates interest rate volatility will remain elevated in 2015 somewhat offset by the stronger dollar and global flight to US based assets, mitigating the overall rise in interest rates. The Federal Reserve is unlikely to raise rates in the first half of 2015. CAI Issuers Continued C/" Orange County Sanitation District Long Term Issuer Report Account k10268 As of 31312015 New York City Tmnsilional Finance Authority Mmdcipal Bonds 0.40% Texas State Transportation Commision Municipal Bonds 0.37% Amgen Inc US Corporate 0.36% Federal Horne Lwo Mortgage Corp MBS 0.35% Deere&Company US Corporate 0.32% Simon Property Gmup Inc US Corporate 0.28% Federal I lome Loan Mortgage Corp CMU 0.28% Southern Company US Corporate 0.26% NCUA Guemnto I Nuts CMO 0.22% AFLAC Inc US Corporate 0.13% University ofCallfofnla Municipal Bonds 0.12% GNMA MBS 0.10% Clilgmup Inc US Cnrporme 0.05% Federal National Mortgage Association CMO 0.05% Soundvlew Home Equity Loan Trust MBS 0.04% Small Business Administration ABS 0.04% AMRESCO Reeldenlal Securities Corp MBS 0.03% SLM Carp ABS 0.01% Wells Fargo home Equity Trust MBS 0.00% Total 100.00% CAI Compliance C/" Orange County Sanitation District Liquid March 31,2015 COMPLIANCE • Assets managed by Chandler Asset Management are in full compliance with State lawand with the investmentpolicy Category Standard Comment Treasury Issues l year maximum maturity; Minimum allocation of 10% Complies Supranational "AA"or better by of NRSROs; 30%maximum; 5%max; 1 Complies year maturity; .Includes on IADB BIRD,and IFC per CGC U.S.Agencies 20%max issuer, 1 year maximum maturity Cam lies U.S.Corporate(MTNs) "A"or better long tern rating by l of 3 NRSROs;30%maximum; Complies 5%max issuer; 1 year max maturity Asset Backed/CMOs "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l Complies of NRSROs; 20%maximum; 5%max issuer, 1year max maturity Negotiable CDs "A"or better on its long term debt by 1 of 3 NRSROs; "AI/P1"or Complies highest short term ratings by 1 of 3 NRSROs; 30%maximum;5% max issuerl year max maturity CDs/TDS 5%max issuer; 1 year max maturity Complies Bankers Acceptances A-1,or equivalent highest short tens rating by l of 3 NRSROS; Complies 40%maximum; 5%max issuer,180 daysmax maturity Commercial Paper A-1,or equivalent by 1 of 3 NRSROS; "A"or better by l of 3 Complies NRSROs,if long term debt issued; 25%maximum; 5%max issuer, 270 days max maturity Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum; 10%max issuer Complies Repurchase A reements 102%collateralization Co. lies Reverse Repurchase 5%maximum,90 days max maturity Complies Agreements LAIF Not wed by investment adviser Complies Prohibited Murici al Securities Complies Prohibited Mortgage Securities Complies Aw Duration Not to exceed 180 days; Max duration of 1/2 year Complies Maximum Maturity 1 year maximum maturity Complies CAI Account Profile Portfolio Characteristics Orange County Sanitation District Liquid 03/31/2015 12/31/2014 Benchmark* Portfolio Portfolio Average Maturity (yrs) 0.14 0.35 0.27 Modified Duration 0.14 0.34 0.27 Average Purchase Yield n/a 0.21 % 0.17 % Average Market Yield 0.02 % 0.19 % 0.24 % Average Quality*" AAA AA+/Aal AA+/Aal Total Market Value 49,461,032 56,923,342 BAML 3-Month US Treasury Bill Index Benchmaik is a blended rating of S&P,Moody's,and Fach.Portfolio is S&P and Moodys respediwly. Multiple securities were purchased across the Treasury,Agency, Commercial Paper, and Corporate sectors of the market to keep the portfolio structure and duration in line with Chandler objectives for the strategy. No securities were sold and twenty three matured to facilitate the additions to the portfolio. In late January$7.5 million was withdrawn from the portfolio. CAI Sector Distribution Orange County Sanitation District Liquid March 31, 2015 December 31, 2014 Money Commercial Market Commercial Paper —Fund Paper 5.9% FI 4.4% 89% Money us Market caponne Agency Fund 18.3% �'0% FI 7.9% Agency �Carpmate /3.4% All 18.5% us us Treasury Treasury 26.3% 11.3% The two largest changes to the sector allocation were the 15.0% increase to the Treasury sector, to 26.3%of the portfolio, offset by the 14.6% decline in the Agency sector, to 43.4% of the portfolio. The sector allocation will continue to evolve based on the short- term cash flow needs of the District. CAI Investment Performance Orange County Sanitation District Long Term Period Ending March 31, 2015 Total Rate of Return Since Inception November 30,2014 1.00 0.80 0.60 0.40 0.20% 0,00% 3 months Since Inception Orange County Sanitation District Lag Term BAML 1-5 Yr US Corpaate/Govt Rated AAA-A index Latest 3 months Since Inception Orange County Sanitation District Long Term 0.82% 0.59% BAIL 1-5 Yr US Corporate/Gov:Rated AAA-A Index 0.96% 0.63% Total rate of return:A measure of a portfolio's performance over time. It is the internal rate of return,which equates the beginning value of the portfolio with the ending value; it includes interest earnings,realized and unrealized gains and losses in the portfolio. CIAI Issuers C/" Orange County Sanitation District Liquid Issuer Report Account#10282 As of 3/3112015 Gevemment of United Slates UST......y 26.32% Federal National Mortgage Association Agency 12.10% Federal I lome Loan Mortgage Corp Agency 11.04% Federal Home I.uan Bank Agency 11.16% Drefus Treasury MMKT FD 521 Money Market Fwul FI 8.04% Federal Fann Credit Bank Agency 8,15% Caterpillar Inc US Corporate 4.06% Dario&Company US Corporate 2.04% General F.lecldc Co US Corporate 2.04% Charles Schwab Corpfrhe US Corporate 2.03% IF Morgan Chase&Co US Corporate 2.03% Coatcc Whclrsalr Corporation US Corporate 2.03% IBM Corp US Corporate 2.03% Bank of Tokyo-Mit UP] Commercial Paper 2.02% Toyota Motor Corp Commercial Paper 2.02% PNC Financial Services Group Commercial Paper 1.01% Total 1100.001 Quality Distribution Orange County Sanitation District Liquid March 31, 2015 vs. December 31, 2014 100.0% g0.o x eo.o x 70.o x ao.o x 50.o X r0.o x 30.0 x 20.0 z m.o x o.o x F:.4 A4 4 to NR 3131/15 12/31114 AAA AA A <A NR 3131115 17.0 % 70.8 % 12.2 % 0.0 % 0.0% 12/31/14 9.5% 75.6 % 14.9 % 0.0 % 0.0% Source:S&P Ratings C�" I Duration Distribution Orange County Sanitation District Liquid March 31, 2015 vs. December 31, 2014 30.0 x 70.0 7. 60.0 z 500 400z 30.07. 20.07. 10.07. 0.0 0-025 0.25-0.50 0.50-1 1-1.5 1.5-2 2-2.5 25-3 3. 351M 12J31114 0-0.25 0.25.0.50 0.50.1 1 .1.5 1.5.2 2.2.5 2.5.3 3+ 3131115 39.1 % 38.5 % 22.4% 0.0% 0.0% 0.0 % 0.0% 0.0% 12/31114 62.9% 17.6 % 19.5% 0.0% 0.0% 0.0 % 0.0% 0.0% The duration of the portfolio extended to 0.34 versus 0.27 at the end of the prior quarter. The Chandler team will look to continue to extend the duration of the portfolio in the coming quarter to improve the total return opportunity for the strategy. CAI Investment Performance Orange County Sanitation District Liquid Period Ending March 31, 2015 Total Rate of Return Since Inception November 30,2014 0.08% 0.06 0.04 0.02 0.00 3 months Since Inception Orange County Sanitation District Liquid BAML 3-Month US Treasury Bill Index Latest 3 months Since Inception Orange County Sanitation District Liquid 0.07% 0,07% BAML 3-Month US Treasury Bill Index 0.00% 0.00% Total rate of return:A measure of a portfolio's performance over time. It is the internal rate of return,which equates the beginning value of the portfolio with the ending value; it includes interest earnings,realized and unrealized gains and losses in the portfolio. CAI Compliance CAS OCSD Lehman Exposure March 31,2015 COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with State lawand with the investmentpolicy Category Standard Comment Treasury Issues 5 years maximum maturity Complies Supranstional "AA"or better by of NRSROs; 30%maximum; 5%max: 5 Complies years maturity; Includes only: IADB,IBRD,and IFC per CGC U.S.Agencies 20%max issuer, 5 years maximum maturity Complies U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs; 30%maximum; Does not comply` 5%max issuer 5 years max maturity Municipal Securities "A"or higher by l of 3 NRSROS; 10%maximum; 5%max Issuer; Complies 5 were maximum maturity Asset Backed/CMOs/ "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l Complies Mortgage-backed of 3 NRSROs; 20%maximum; 5%max issuer(excluding MBS/ ovtagency);5 ars max maturity Negotiable CDs War befteron its long term debt by l of 3 NRSROs; "A1/P7"or Complies highest short term ratings by 1 of 3 NRSROs; 30%maximum;5% max issuer, 5 were max maturity CDs/TDS 5%max issuer; 5 were max maturity Complies Banker's Acceptances A-1,or equivalent highest short term rating by l of 3 NRSROS; Complies 40%maximum; 5%max issuer;180 days max maturity Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by l of 3 Complies NRSROs,if long tern debt issued; 25%maximum; 5%max issuer; 270 days max maturity Money Market Fund Highest rating by2 of 3 NRSROs; 20%maximum;10%max issuer Complies Repurchase A reements 102%collatemlization Complies Reverse Repurchase 5%maximum,90 days max maturity Complies Agreements LAIF Not used bv Investment adviser !Complies fivig Duration I Not to exceed 60 months - 80%to 120%of the benchmark Complies Maximum Maturity 5 years maximum maturity Does not comply `Account horde$2 million face value(cualp 525ESCAy6)and$600.000 face value(chair,525ESC167)of defaulted Lehman ems Holdkga that were purchased by the previous manager. CAI Account Profile Portfolio Characteristics OCSD Lehman Exposure 03/3112015 12/31/2014 Portfolio Portfolio Average Maturity(yrs) 22.71 23.63 Modified Duration 0.00 0.00 Average Purchase Yield 0.00 % 0.00% Average Market Yield 0.00 % 0.00% Average Quality" NR/NR NR/NR Total Market Value 295,283 368,283 ItSECTION 3 Consolidated Information CAI Account Profile Portfolio Characteristics Orange County Sanitation District Consolidated 03/3112015 12/31/2014 Portfolio Portfolio Average Maturity(yrs) 2.83 2.41 Modified Duration 2.30 1.90 Average Purchase Yield 1.08 % 0.85 % Average Market Yield 0.83 % 0.76% Average Quality" AA+/Aal AA+/Aal Total Market Value 436,183,984 490,883,518 CI Sector Distribution Orange County Sanitation District Consolidated March 31, 2015 December 31, 2014 US Money Corporate Market log% Furl�-- _ Municipal Supranational FI Bows 2% 3.4% Municipal MBS Bones % 2.4% Morley Common US Market Stock Fund 0.0% Corporate 12.6% MBS 1.2% Commercial Common Paper Stock 1.8% 0.0% UB US Corrine al Treasury CMOs Treasury Paper 45.3% 0.5% ' 36.0% 4A% cM0 0.5% Agency 31.2% Agency 20A% ABS——------__ ABS ABS % 52% SECTION 4 Portfolio Holdings 400, - .� C," Orange County Sanitation District Long Term Holdings Report Account#10268 As of 3/31115 Rumbas.Da:. Cost Va!ue Mld Price Market Value %of Pod. Mai Maturity CUSIP Security Description Par Value/Units Book Yi.If Book V.us Mkt YTM Accrued Int. GainfLoss, Fifth Duration ABS 161571FL3 Chase CHAFF Pool M2012-A5 4,000,000.00 01/07/2015 4,001,406.25 100.05 4,001,972.00 1o4% NEI 2.38 0,59%Due 8115/2017 0.57% 4,001,288.81 0.45% 1,048S9 683.19 AAA 0.35 43813JAC9 Honda Auto Receivables 2014-1 A3 4,000,000.00 01/22/2015 3,987,812.50 99.87 3,994,988.00 1.03% Aaa I NR 2.65 0.67%Due 11121/2017 0.90% 3,988,936.42 0.78% 744.44 6.051.58 AAA 1.20 89231MAC9 Toyota Auto Receivables Owner 2014-A 4,000,000.00 01212015 3,991,718.75 99.94 3,997,672.00 1.03% Aaa/AAA 2.71 0.67%Due 12/15/2017 0.90% 3,992,464.29 0.72% 1,191.11 5,207.71 NR 1.17 477877AD6 John Deere Owner Trust 2014-B A3 4,000,000.00 02/042015 4,001,875.00 100.19 4,007.524.00 1.04% Aaa I NR 3.0 1.07%Due 11115/2018 1.05% 4,001,780.32 0.96% 1,902.22 5,743.68 AAA 1.71 89236WAC2 Toyota Auto Receivables Owner 2015-A 3,595,000.00 02/2412015 3,594,456.44 100.32 3,606,464.46 0.93% Aaa/AAA 3.88 1.12%Due 2/15/2019 1.13% 3,594,470.55 0.9fi% 3.019.80 11.993.91 NR 1.94 36164EAC9 GE Equipment Transportation 2015-1 A3 2,955,000.00 0224/2015 2,954,564.14 100.14 2,959,178.37 0.77% Aaa/AAA 3.91 1.28%Due 21252019 1.29% 2,954,575.35 1.22% 2,836.80 4.603.02 NR 2.13 83162CUO Small Business Administration 2001-20C 155,329.59 03/062001 155,329.59 106.58 165,544.06 0.04% Asia/AA- 5.92 6.34%Due 3112021 6.34% 155,329.59 4.19% a20.66 10,214.47 AAA 2.97 78445JAA5 SLMA 2008-9A 48,439.32 08/222008 48,242.79 102.54 49,668.81 0.01 % Asa/AA+ 8.07 1.756%Due 41252023 1.85% 48,384.21 1.07% 155.95 1,284.60 AAA 0.15 22,735,405.46 22,783,011.70 5.90% Aaa/AAA 3.18 Total ABS 22,753,70+91 0.99% 22,737,229.54 0.85% 11,719.87 45,782.16 Aaa 1.38 313588EK7 FNMA Discount Note 9,800,000.00 111172014 9,796,146.69 100.00 9,799,612.08 2.54% Aaa I AA+ 0.04 Dm4/16/2015 0.10% 9,799,612.08 0.10% 0.00 0.00 AAA 0.04 313384FA2 FHLB Discount Note 10,000,000.00 01/302015 9,998,053.60 99.99 9,999,358.33 2.59% Aaa/AA+ 0.08 0.08%Due 5112015 0.08% 9,999,358+33 0.08% 0.00 0.00 AAA 0.08 31358BLD5 FNMA Discount Note 10,000,000.00 03/112015 9,994,233.30 99.95 9,994,899.97 2.59% Aaa/AA+ 0.42 CA2%Due 9112015 D12% 9,994,899.97 D12% 0.00 0.00 AAA 0.42 313396LP6 FHLMC Discount Note 10,000,000.00 03202015 9,993,194+40 99.94 9,993,661+07 2.59% P-1/A-1+ 0.45 0.14%Due 911 WO15 0.14% 9,993,661.07 0.14% 0.00 0.00 F-1+ 0.45 3137EADU0 FHLMC Note 5.000,000.00 01/162015 4,991,050.00 99.83 4,991,395.00 1.29% Asia/AA+ 1.83 0.5%Due 11272017 0.59% 4,991,911.04 0.60% 5,208.33 (516.04) AAA 1.81 3137EADN6 FHLMC Note 5,000,000.00 0112MO15 4,967,500.00 99.82 4,991.150.00 1.29% Aaa/AA+ 2.79 0.75%Due 111MOIB 0.97% 4,969,452.40 0.81 % 8,229.17 21,697.60 AAA 2.74 3137EADP1 FHLMC Note 5,000,000.00 01/132015 4,974,100.00 99.84 4,991,965.00 1.29% Aaa I AA+ 2.94 0.875%Due 3172018 1.04% 4,975,837.20 0.93% 2.916.67 16.127.80 AAA 2.89 313378A43 FHLB Note 7,500,000.00 021112015 7,544,850.00 101.22 7,591,830.00 1.97% Aaa I AA+ 2.94 1.375%Due 319/2018 1.18% 7,542,929.57 0.95% 6,302.08 48.900.43 AAA 2.87 Chandler Asset Management-CONFIDENTIAL Execution rime:4113140151:53:00 PM 35 CAOrange County Sanitation District Long Term Holdings Report Account#10268 As of 3/31115 Purchase Da:. Cost Va!ue MId Price Market Value %of Pod. MoodyISSP Maturity CUSIP Security Description Par Value/Units Book Yi.d Book V.us Mkt YTM Accrued Int. GainfLoss Fitch Duration AGENCY 3135GOZG1 FNMA Note 5,000,000.00 12/15/2014 5,021,500.00 101.60 5,080,195.00 1.32% AAA/AA+ 445 1.75%Due 911 2/201 9 1.66% 5,020,181,12 1.38% 4,618D6 60,011.58 AAA 4.27 67,280,627.99 67,430.066.45 17.46% Aaa/AA- 1.37 Total Agency 67,300,000.00 0.51% 67,287,845.08 0.45% 27,274.31 146,221.37 As. 1.34 CMO 6288BUAA8 NOVA Guaranteed Note CMO 2010-R2 613,262.91 11/10/2010 613,260,12 100.26 614,864,75 0,16% Aaa I AA+ 2.61 0.549%Due 1116/2017 0.00% 613,260A2 0.41 % 231.36 1,604A3 NR 0.08 31398VJN FHLMC FHMS K006 A2 900,000.00 11/23/2010 951,046.88 110.73 996.580.80 0.26% Aaa/AA+ 4.82 4.251%Due 1/25/2020 3.02% 926,866+78 1.79% 637.65 69,714.02 AAA 4.23 6288SXAA2 NCUA Guaranteed Notes CMO 201 D-Cl 237,007.68 11/09/2010 237,618.72 100.11 237.266.26 0.06% NR/AA+ 5.59 1.6%Due 10/29/2020 1AS% 237,007.68 1.51 % 21.07 258.58 AAA 1.09 3133TCE95 FHLMC FSPC E3A 86,124.40 03/11/1998 86,214+48 104.61 90,098+18 0.02% Aaa/AA- 17.39 2.918%Due 8/15/2032 2.89% 86,170.01 0.50% 209.43 3.928.17 AAA 2.28 31396X305 FNMA FNR 2007-114 As 198,879.40 01/10/2008 189184.03 98.72 196,343.29 0.05% Anne/AA+ 22.59 0.378%Due 10127/2037 0,72% 191,530.78 0,49% 8.35 4,812.51 AAA 1.25 2,077,324.23 2,135,153.28 0.55% Aaa/AA+ 6.43 Total CMO 2,035,274.39 1.72% 2,054,835.37 1.19% 1,107.86 80,317.91 Aaa 2.33 COMMERCIAL PAPER 06538CTV3 Bank of Tokyo Mitsubishi NY Discount 7,500,000.00 01/3012015 7,490,937.53 99.93 7,494,622.93 1.94% P-1/A-1 0.25 CP 0.29% 7,494,622.93 0.29% 0.00 0.00 F-1 0.25 0.29%Due 6129/2015 69349KW22 PNC Bank Discount CP 7,000,000.00 12/10/2014 6,980,419.44 99.84 6,988.621.11 1.81 % P-1/A-1 0.42 0.38%Due 9IM015 0.39% 6,988,621.11 0.39% 0.00 0.00 F-1 0.42 89233HW42 Toyota Motor Credit Discount CP 2,000,000.00 02/2512015 1,997,255.56 99.89 1,997,746.67 0.52% P-1/A-1+ 0.43 0.26%Due 9/4/2015 0.26% 1,997,746.67 0.26% 0.00 0.00 F-1 0.43 16,468,612.53 16,480,990.71 4.26% P-1/A-1 0.34 Total Commercial Paper 16,500,000.00 0.33% 16,480,990.71 0.33% 0.00 0.00 F-1 0.34 MBS 31381PDA3 FNMA FN 466397 372,547.84 12/01/2010 364,48568 107,44 400,260,18 0,10% Aaa I AA+ 5.59 3%Due 11/1/2020 3A0% 367,99978 194% 246,30 32.260,40 AAA 4.84 36225CAZ9 GNMA P.I#G280023 31,325.39 08/08/1997 31,844.22 103.31 32,362.17 0.01 % Ann/AA+ 11.73 1.625%Due 12/20/2026 1.52% 31,532.80 1.15% 42.42 829.37 AAA 4.49 36225CC20 GNMA Pooh G280088 37,469.40 08/11/1997 38,289.06 103.97 38,958.62 0.01 % Aaa/AA+ 12.23 2%Due 6/20/2027 1.86% 37,805.29 1.23% 62.45 1.153.33 AAA 4.85 31348SWZ3 FHLMC PH 786064 2,798.37 0211WOOO 2,730.22 103.70 2,901.83 0.00% Aaa I AA+ 12.76 2.262%Due 1/1/2028 2.45% 2,767.17 1.70% 5.27 134.66 AAA 0.78 Chandler Asset Management-CONFIDENTIAL E...Won Time:4M3sW151:53:00 PM 36 CAOrange County Sanitation District Long Tenn Holdings Report Account#10268 As of 3/31115 Purchase Da:. Cost Va!ue Mld Price Market Value %of Pod. MoodyISSP Maturity CUSIP Security Description Par Value/Units Book Yi.d Book V.us Mkt YTM Accrued Int. GainfLoss Fitch Duration MISS 31371NUC7 FNMA FN 257179 50,075.59 12/05/2011 52,959S3 109.03 54,599.17 got % Asa 1 AA+ 13.01 4.5%Due 411/2028 3.72% 52,375.72 1.33% 187.78 2,223.45 AAA 3.01 31417YAY3 FNMA Pool#FN MA0022 50,188.43 12/05/2011 53,079.15 108.95 54,680.75 0.01 % Asa/AA- 14.01 4.5%Due 411/2029 3.76% 52,527.53 1.43% 188.21 2.153.22 AAA 2.97 313BEG6F6 FNMA FN AL0869 31,508.45 12/05/2011 33,323.28 108.97 34.335.73 0.01 % Asa/AA+ 14.18 4.5%Due 611/2029 3.77% 32,980.28 1.80% 27.57 1,355,45 AAA 3.36 03215PFN4 AMRESCO Residential Securities 1999-1 133,743.20 05/2W2011 100,432.78 92.77 124.072.23 0.03% NR/AA+ 14.25 A 4.58% 107,531.47 2.19% 29.01 16,540.76 BBB 6.98 1A 16%Due 6/25/2029 3837H4NX9 GNMAP.1#2000,9 58,506.92 01/24/2000 58,506.92 100.64 58.881.95 0.02% Asa/AA+ 14.89 0.677%Due 2116/2030 0.68% 58,506.92 0.34% 32.91 375.03 AAA 0.03 36225CNM4 GNMA Pooh G280395 13,674.32 03/15/2000 13,550.38 103.81 14,195.09 0.00% Ass/AA+ 15.07 1.625%Due 4120/2030 1AS% 13,611.94 1.22% 18.52 583.15 AAA 5.96 36225CN28 GNMA P.I#G280408 112,934.48 03/15/2000 111,787.50 103.79 117,219+55 0.03% Aaa/AA- 15.15 1.625%Due 51 1.69% 112,355.60 1.17% 152.93 4.863.95 AAA 5.41 31403GXF4 FNMA Pool#FN 748678 7,075.56 06/10/2013 7,606.23 111.07 7,858.53 0.00% Asa/AA+ 18.52 5%Due 10/112033 4.16% 7,561.31 1.30% 29.48 297.22 AAA 3.23 36225DCBB GNMA PooW G280965 114,762.74 07/19/2004 114,691.03 103.48 118,751.89 0.03% Asa/AA+ 19.32 1.625%Due 7120=4 1.63% 114.716.45 1.18% 155.41 4,035.44 AAA 6.02 94980GAG6 Wells Fargo Home Equity Trust 9,271.38 09/13/2011 9,201.84 100.45 9,312.64 0.00% Asa/AAA 19.58 5%Due 10/2512034 5.13% 9,212.50 3.13% 7.73 100.14 AAA 0.40 31406XWT5 FNMA Pool#FN 823358 237,564.34 01/11/2006 235,708.37 106.80 253,712.78 0.07% Asa I AA+ 19.85 2.247%Due 211/2035 2.30% 236,295.63 1.70% 444.84 17.417.15 AAA 0.83 31406POY8 FNMA Pool#FN 815971 533,541.45 IM/10/2013 573,557.06 111.28 593.720.12 0.15% Asa/AA+ 19.93 5%Due 3/112035 4.21 % 570,390+87 1.54% 2,223+09 23,329.25 AAA 3.33 31407BXH7 FNMA Pool#FN 826080 50,500.16 06/10/2013 54,287.67 111.29 56,203.09 0.01 % Aaa/AA+ 20.27 5%Due 7/112035 4.22% 53,992.55 1.56% 210.42 2,210.54 AAA 3.35 31376KT22 FNMA FN 357969 288,675.23 06/10/2013 310,325+88 111.21 321,022+16 0.08% Asa I AA+ 20.44 5%Due 9/112035 4.22% 308,651.79 1.51 % 280.66 12.370.37 AAA 3.27 83611MGSt Soundview Home Equity Loan Tr.2005- 171,460.97 09/13/2011 151,367A9 99A3 169,960.69 0.04% NR/A+ 20.67 OPT3 A4 1,54% 154,310.12 2,28% 15.86 15,650.57 A 0.47 0.476%Due 11I25/2035 31403DJZ3 FNMA Pool#745580 272,698.86 06/10/2013 293,151.26 111.23 303,322.67 D08% Puts/AA+ 21.19 5%Due W112036 4.26% 291,621.67 1.57% 1,136.25 11.701.00 AAA 3.36 31410F4V4 FNMA Pool#FN 888336 551,845.38 06/10/2013 593,233.79 111.20 613,654.82 0.16% Asa/AA+ 21.27 5%Due 7/112036 4.25% 590,149+52 1.56% 2,299+36 23,505.30 AAA 3.35 31397QREO FNMA FNR 2011-3 FA 575,734.17 12/20/2010 575,554.26 101.43 583,967.17 0.15% Ass/AA+ 25.93 0.854%Due 2125/2041 0.85% 575,579.22 0.46% 81.92 8,387.95 AAA 0.09 Chandler Asset Management-CONFIDENTIAL E...Won Time:4M=0151:53:00 PM 37 CAR, Orange County Sanitation District Long Term Holdings Report Account#10268 As of 3/31115 Purchase Data Cost Va!ue Mkt Price Market Value %of Pod. MoodylS&P Maturity CUSIP Security Description Par Value/Units Book Yield Book V.us Mkt YTM Accrued Ind. Gainti-ores Fitch Duration MBS 313MJY35 FHLMC FSPC T-582A 1,177,398.65 06/09/2011 1,333,403A5 114A3 1,353,184.27 0.35% Aaa/AA+ 28.51 6.5%Due 9125/2043 5.40% 1,315,05232 3.35% 1,275.52 38,131.55 AAA 4.73 5,113,078.25 5,317,138.10 1.38% Aaa/AA- 21.37 Total MBS 4,885,301.28 3.75% 5,097,528.85 1.93% 9,153.91 219,609.25 Ass, 3.40 MONEY MARKET FUND FI 261908107 Dreyfus Short-Intermediate Gov Treasury 6,753,476.96 Various 6,753,47696 1.00 6,753,476,96 1,75% Ape/AAA 0.00 Cash Management Fd521 0.01 % 6,753,476S6 0.01 % 0.00 0.00 AAA 0.00 6,70,476.96 6,753,476.96 1.75% Pas/AAA 0.00 Total Money Market Fund FI 6,753,476.96 0.01% 6,753,476.96 0.01 % 0.00 0.00 Aaa 0.00 MUNICIPAL BONDS 73358WAG9 Port Authority of NY B NJ TE-REV 2,440,000.00 Various 2,507,633.89 114.08 2,783,649.60 0.73% Ads/AA- 4.67 5.309%Due 1211/2019 4,97% 2,470,31868 2,12% 43,179,87 313,330,92 AA- 4.12 549711,15E8 New Yodc NY TE-REV 1,400,000.00 10127/2010 1,400,000.00 109.40 1,531,628.00 0.40% Act/AAA 5.59 4.075%Due 1111/2020 4.08% 1,400,000.00 2.27% 23.770.83 131.628.00 AAA 4.95 913366E,15 Univ of California Rgts Med TE-REV 400,000.00 11109/2010 400,000.00 114.63 458,508.00 0.12% Aa31 AA- 6.13 5.035%Due 5/15/2021 5.04% 400,000.00 2.45% 7,608.44 58.508.00 NR 5.25 452252FJ3 Illinois ST Toll Hwy Authority TE-REV 2,500,000.00 06/290009 2,464,750.00 108.90 2,722.575.00 0.71 % Aa3/AA. 8.76 5.293%Due 1/1/2024 5.43% 2,478,720.87 4.07% 33,081.25 243,854.13 AA- 3.41 88283LHT6 Texas Transportation Comm.TE-REV 1,200,000.00 07/27/2010 1,200,000.00 118.16 1,417.872.00 0.37% Me/AAA 11.01 5.028%Due 411/2026 5.03% 1,200,000.00 3.W% 30,16B.00 217,872.00 NR 7.85 575898GS8 Mass ST Pod Auth Rev TE-REV 1,300,000.00 06/09/2011 1,300,000.00 122.48 1,592,188.00 0.42% A3/A 16.26 6.202%Due 711/2031 6.20% 1,300,000.00 4.27% 20,156.50 292.188.00 A- 8.93 9,272,383.89 10,506,420.60 2.76% Aaa/AA 8.54 Total Municipal Bonds 9,2A0,000.00 5.14% 9,249,039.55 3.12% 157,964.89 1,257,381.05 AA- 5.34 SUPRANATIONAL 45950KBS8 International Finance Corp Note 5,000,000.00 03/16/2015 5,020,70000 100,38 5,018,985,00 1,30% Ads/AAA 2.07 1%Due 4/24/2017 0-80% 5,020,29623 0-81 % 21,80556 (1,31123) NR 2-03 5,020,700.00 5,018,985.00 1.30% Aaa/AAA, 2.07 Total Suprenational 5,000,000.00 0.80% 5,020,296.23 0.81 % 21,805.56 (1,311.23) NR 2.03 US CORPORATE _ 61747YCE3 Morgan Stanley Note 700,000.00 Various 737,361 00 10033 702,307,20 0.19% Baa21 A- 0.08 6%Due 4/28/2015 3.79% 701,085.32 1.56% 17,850.00 1,221.88 A 0.07 949851-151`7 Wells Fargo Bank Note 6,300,000.00 07122/2013 6,297,795.00 100.15 6,309,513.00 1.64% Aa31 AA- 0.30 0.75%Due 7/20/2015 0.T/% 6,299,663.59 0.25% 9,318.75 9,849A1 AA- 0.30 Chandler Asset Management-CONFIDENTIAL Execution rime:4M3C0151:53:00 PM 38 CAOrange County Sanitation District Long Term Holdings Report Account#10268 As of 3/31115 Pur.h.s.Da:. Cost Va!ue Mkt Price Market Value %of Pod. MoodyIS&P Maturity CUSIP Security Description Par Value/Units Book Yi.d Book V.us Mkt YTM Accrued Int. GainfLoss Fitch Duration US CORPORATE 001055AE2 Aflac Inc Note 500,000.00 08/04/2010 499,630.00 101.02 505,078.50 0.13% A3/A 0.38 3.45%Due 81152015 3.47% 499,972S3 0.71 % 2,20,tA7 5,105A7 A. 0.37 842587CGO Southern CO Note 1,000,000.00 09/13/2010 999,810.00 100.79 1,007,934.00 0.26% Baal IA- 0.46 2.375%Due 9115/2015 2.38% W9,982.60 0.63% 1,055.56 7.951 AD A 0.45 1729670GO Citigroup Ino Note 200,000.00 0820/2013 198,352.00 100.28 200,554.20 0.05% Baa2I A. 0.79 1.25%Due 1115/2016 1.60% 199,455.69 0.90% 527.78 1,098.51 A 0.78 38141GEG5 Goldman Sachs Group Inc Note 2,000,000.00 01/042011 1,895,068.00 99.97 1,999.468.00 0.52% Baal IA- 0.98 0.715%Due 3/22/2016 1.76% 1,980,349.39 0.74% 396.97 19,118.61 A 0.23 89236TAK1 Toyota Motor Credit Corp Note 5,200,000.00 05/142013 5,200,000.00 100.25 5,213,223.60 1.35% Aa3/AA- 1.13 0.547%Due 5/17/2016 0.55% 5,200,000.00 0.32% 3.316.65 13,223.60 A 0.13 06050TIX8 Bank of America Note 600,000.00 05/012014 600,000.00 99.83 598,977.60 0.16% A2/A 2.11 0.676%Due 518/2017 0.68% 600,000.00 0.76% 596.78 (1,022.40) NR 0.10 94988J2L0 Wells Fargo Bank Callable Note ably 500,000.00 06/052014 500,000.00 99.90 499.524.50 0.13% Aa3/AA. 2.21 6/1512016 0."% W0,000.00 0.57% 117.92 (475.50) AA- 0.21 0.531%Due 61152017 060505DP6 Bank of America Corp Note 3,800,000.00 01/152014 4,334,014.00 110.04 4,181,330.00 lA0% Baa2I A. 2.67 5.75%Due 12/1/2017 1.95% 4,169,265.00 1.87% 72,833.33 12,065.00 A 2.45 166784AA8 Chevron Corp.Callable Note Cont 4,000,000.00 12/042014 3,977,200.00 100.09 4,003,540.00 1.04% Aai/AA 2.68 11/5117 1.30% 3,979,559.34 1.07% 14,229.33 23,980.65 NR 2.% 1.104%Due 1215/2017 458140AL4 Intel Corp Note 2,000,000.00 01/262015 2,008,280.00 100.50 2,010.082.00 0.52% At I A+ 2.71 1.35%Due 121152017 1.20% 2,007,791+55 1.16% 7,950+00 2,290.45 A. 2.64 40428HPH9 HSBC USA Inc Note 3,000,000.00 Various 3.003,290.00 100.00 3,000.075.00 0.78% A2/A 2.80 1.625%Due 11162018 1.59% 3,003,081.84 1.62% 10.156.25 (3,006.84) AA. 2.71 38141GFG4 Goldman Sachs Group Inc Note 600,000.00 Varous 692,806+00 111.35 668,083+80 0.17% Baal IA- 2.81 5.95%Due 1118/2018 2.72% 650,237.38 1.77% 7,239.17 17.846.42 A 2.58 674599CD5 Occidental Petroleum Callable Note Cant 2,000,000.00 01/062015 1,986,340.00 99.88 1,997,550.00 0.52% A2/A 2.88 1/15I18 1,73% 1,987,328.63 1,54% 3,833.33 10,221.37 A 2.72 1.5%Due 21152018 02581MYS American Express Credit Note 2.900,000.00 Various 3,377,385.79 115.53 3,350,428.00 0.87% A3/BBB- 2.97 7%Due 3/19/2018 4.28% 3,099,572.58 1.62% 6,766.66 250,855.42 A. 2.72 718172AA7 Philip Morris Intl Inc Note 1,600,000.00 08/232010 1,854,144.00 112.98 1,807.652.80 0.48% A2/A 3.13 5.65%Due 51162018 3.30% 1,702,829.19 1.39% 33,900.00 104,a23.61 A 2.85 073902CD8 Bear Steams Note 3,200,000.00 01/152014 3,523,520.00 108.91 3,485.212.80 0.91 % A3/NR 3.26 4.65%Due 71M018 2.25% 3,436,809.46 1.81 % 36,7B6.67 48,403.34 A+ 3.01 590189JN9 Merrill Lynch&Cc Inc Debenture 2,800,000.00 Various 3,417,664+00 116.04 3,249,083+60 0.86% Baa2I A- 3.63 6.875%Due 111152018 2.87% 3,171,181.73 2.24% 72,722.23 77.901.87 A 3.19 532457BF4 Eli Lilly&Co Note 4,000,000.00 Various 4,009,675.00 101.71 4,068,360.00 1.05% A2/AA- 3.96 1.95%Due 3115/2019 1.89% 4,008,977+40 1.50% 3,466+67 59,382.60 A 3.80 02665WAH4 American Honda Finance Nate 2,000,000.00 03/132015 2,019,540.00 101.70 2,034.024.00 0.53% At I A+ 4.38 2.25%Due 81152019 2.02% 2,019,370A9 1.84% 5,750.00 14,653.81 NR 4.14 Chandler Asset Management-CONFIDENTIAL Execution Time:4/13a0161:53:00 PM 39 CAOrange County Sanitation District Long Term Holdings Report Account#10268 As of 3/31115 Purchase Data Cost Va!ue Mld Price Market Value %of Pod. MoodyISSP Maturity CUSIP Security Description Par Value/Units Book Yield Book V.us Mkt YTM Accrued Int. Gainfl-ores Fifth Duration US CORPORATE 24422ESS9 John Deere Capital Corp Note 1,200,000.00 12/04/2014 1,204,956.00 102A0 1,225,218.00 0.32% A2/A 4.47 2.3%Due 9116/2019 2.21 % 1,204,634S1 1.81 % 1,150.00 20,583.49 NR 4.22 36962G7M0 General Electric Capital Corp Callable 5,000,000.00 Various 5,014,950.00 101.10 5,055,170.00 1.31 % Al/AA+ 4.78 Note Cant 1219/2019 2.13% 5,014,833.40 1.95% 25,055.55 40.336.60 NR 4.42 2.2%Due 119/2020 46625HKA7 JP Morgan Chase Callable Note Cant 2,000,000.00 02/06/2015 1,994,880.00 100.21 2,004,284.00 0.52% A3/A 4.82 12r2312019 2.30% 1,995,018.84 2.20% 8.500.00 9.265.16 A+ 4.45 2.25%Due 1/23/2020 031162BD1 Amgen Inc Note 1,300,000.00 Various 1,318,052.00 105.46 1,371,020.30 0.36% Baal/A 5.51 3.45%Due 1011/2020 3.23% 1,313,500.23 2.38% 22.425.00 57,520.07 BBB 4.93 828807CF2 Simon Property Group Callable Note 1,000,000.00 08109/2010 996,050.00 110.69 1,106,889.00 0.29% A2/A 5.92 Cant 12/1/2020 4.42% 997,782.87 2.35% 3,645.83 109,106.13 A 5.04 4.375%Due 3/1/2021 61747WAL3 Morgan Stanley Note 2,800,000.00 0610612014 3,200,848.00 116.01 3,248,184.80 0.85% Baa2/A- 6.33 5.5%Due 7128/2021 3.24% 3,155,590.97 2.73% 26,950.00 92,593.83 A 5.39 64,861,610.79 64,902,768.70 16.90% A21A+ 2.99 Total US Corporate 62,200,000.00 2.02% 63,897,874.23 1.45% 398,744.60 1,004,894.47 A 2.63 US TREASURY 912828TX8 US Treasury Note 7,500,000.00 12/15/2014 7,510,572.00 100.10 7,507,620.00 1.95% Asa I AA+ 0.63 0.375%Due 11/15/2015 0,22% 7,507,216+81 0.21 % 10,643+99 403.19 AAA 0.62 912828UC2 US Treasury Note 10,000,000.00 12/19Q014 9,997,299.13 100.02 10,002,360.00 2.59% Asa/AA+ 0.71 0.25%Due 12/15/2015 028% 9,998,053.56 D22% 7,348.90 4,286.44 AAA 0]1 9128281341 US Treasury Note 7,500,000.00 01/1312015 7,512,915.75 100.13 7,509,375.00 1.94% Asa/AA+ 0.84 0.375%Due 1131/2016 0.21 % 7,510,312.31 0.23% 4,661.60 (937.31) AAA 0.84 91282BD31 US Treasury Note 3,500,000.00 0528/2014 3,50Q340.41 100.01 3,50Q294.00 0.91 % Asa I AA+ 1.08 2.069%Due 4130/2016 2.07% 3.500,191.81 2.07% 11,903.84 102.19 AAA 0.08 91282BD64 US Treasury Note 19,600,000.00 09/08/2014 19,596,171.88 100.13 19,624.500.00 5.08% Aaa/AA+ 1.42 0.5%Due 8/31/2016 0.51 % 19,597,253+51 0.41 % 8,521+74 27,246.49 AAA 1.41 912828G46 US Treasury Note 15,000,000.00 Various 14,965,870.56 100.05 15,007.035.00 3.89% Asa/AA+ 1.67 0.5%Due 11130/2016 0.62% 14,970,911.71 0.47% 25,137.36 36,123.29 AAA 1.66 91282BJ35 US Treasury Note 10,000,000.00 03130/2015 9,987,924+13 99.94 9,993,750+00 2.59% Asa I AA+ 1.92 0.5%Due 2128/2017 0.56% 9,987,941.38 0.53% 4,367.83 5.808.62 AAA 1.90 912828020 US Treasury Note 12,500,000.00 Various 12,435,979.37 100.27 12,533,200.00 3.25% Asa/AA+ 2.63 0.875%Due 11115/2017 1.05% 12,442,322.70 0,77% 41,393.30 90,877.30 AAA 2.58 912828WS5 US Treasury Note 52,900,000.00 Various 52,816,985.09 101.55 53,722,436.30 13.96% Asa/AA+ 4.25 1.625%Due 6/30/2019 1J66% 52,828,531.04 1.25% 216,093.58 893,905.26 AAA 4.08 912828WW6 US Treasury Note 17,400,000.00 Various 17,443,112.67 101.50 17,661,000.00 4.58% Asa I AA- 4.34 1.625%Due 7131/2019 1.57% 17,437,653.76 1.27% 46,864.64 223,346.24 AAA 4.17 91282BF39 US Treasury Note 5,800,000.00 10127/2014 5,873,186+87 101.91 5,910,559+60 1.53% Asa I AA+ 4.50 135%Due 9/30/2019 1.48% 5,866,877A6 1.31 % 27T33 43,681.94 AAA 4.32 Chandler Aseet Management-CONFIDENTIAL Execution rime:4M3C0151:53:00 PM 40 CAOrange County Sanitation District Long Term Holdings Report Account#10268 As of 3/31115 Purchase Data Cost Va!ue Mld Price Market Value %of Pod. MoodyISSP Maturity CUSIP Security Description Par Value/Units Book Yield Book V.us Mkt YTM Accrued Int. GainfLoss Fitch Duration US TREASURY AL 91282BG61 US Treasury Note 7,500,000.00 12/19/2014 7,449,634S0 10077 7,557,420.00 1.97% Aaa/AA+ 4.67 1.5%Due 11/30/2019 1.64% 7,452,426.38 1.33% 37,706D4 104,993.62 AAA 4.47 912828TEO US Treasury Inflation Index Note 3,252,608.00 Various 3,259,934.55 101.03 3,286,148.90 0.85% Aaa/AA. 7.30 0.125%Due 7/15/2022 0.10% 3,259,590.91 -0.02% 853.59 26.557.99 AAA 7.26 912828MO US Treasury Inflation Index Note 10,237,760.00 Various 10,122,585A1 99.96 10,233,767.27 2e5% Ate/AA- 9.30 0.125%Due 7/15/2024 0,24% 10,130,311.99 0,13% 2,686.71 103,455.28 AAA 9.57 182,472,512.02 184,049,448.07 47.74% Ann/AA+ 3.33 Total US Treasury 182,690,368.00 1.04% 182,489,595.53 0.82% 418,440.45 1,559,850.54 Also 3.24 382,055,732.12 385,381,457.57 100.00% Adel/AA+ 3.13 TOTAL PORTFOLIO 379,359,189.54 1.20% 381,068,712.05 0.91 % 1,066,211.45 4,312,745.52 Asa 2.56 TOTAL MARKET VALUE PLUS ACCRUED 386,427,669.02 Chandler Asset Management-CONFIDENTIAL Execution rime:4M3Y20151:53:00 PM 41 C/" Orange County Sanitation District Liquid Holdings Report Account#10282 As of 3/31115 Purchase Data Cost Va!ue MUd Price Market Value %of Pod. MoodyIS&P Maturity CUSIP Security Description Par Value/Units Book Yield Book V.us Mkt YTM Accrued Int. GainfLoss Fitern Duration AGENCY 313396DU4 FHLMC Discount Note 900,000.00 10/21/2014 899,718.25 100.00 900,00(.00 IS2% Aaa I AA+ 0.00 Due 4/1/2015 0.07% 900,000DO 0.07% )DO Dee AAA 0.00 313384EJ4 FHLB Discount Note 2,000,000.00 02/09/2015 1,999,783.34 100.00 1,999,953.33 4.04% Aaa I AA+ 0.04 0.06%Due 4/152015 Dw% 1,999,953.33 Dw% 0.00 0.00 AAA 0.04 3137EADDB FHLMC Note 2,000,000.00 12/19/2014 2,002,184.00 100.02 2,000.376.00 4.05% Aaa/AA- 0.05 0.5%Due 41172015 0.16% 2,000,301.24 0.08% 4,555.56 74.76 AAA 0.04 3135GOKM4 FNMA Note 2,000,000.00 12/192014 2,002,740.00 100.06 2,001.218.00 4.05% Ann/AA+ 0.16 0.5%Due 5127/2015 0.18% 2,000,983.59 0.11 % 3,444.44 23Al AAA 0.16 3133EAR03 FFCB Note 2,000,000.00 12/1912014 2,003,400.00 100.08 2,001,614.00 4.05% Aaa I AA+ 0.23 0.5%Due 612MO15 0.16% 2,001,542.08 0.15% 2,722.22 71.92 AAA 0.23 3135GOLN1 FNMA Note 2,000,000.00 12/19/2014 2,003,408.00 100.09 2,001,752.00 4.05% Asia/AA+ 0.25 0.5%Due 7/2/2015 0.18% 2,001,633.00 0.15% 2,472.22 119.00 AAA 0.25 313396JM6 FHLMC Discount Note 1,000,000.00 03/122015 999,704.44 99.97 999.749.89 2.02% P-1/A-1+ 0.31 0.06%Due 7123/2015 0.08% 999,748+89 0.08% 0.00 0.00 NR 0.31 313396K25 FHLMC Discount Note 2,000,000.00 03/03/2015 1,998,833.12 99.95 1,999.023.23 4.04% P-1/A-1+ 0.41 0.11%Due 81282015 0.12% 1,999,023.23 D12% 0.00 0.00 F-1+ 0.41 313370J135 FHLB Note 1,500,000.00 12/26/2014 1,515,240+00 100.67 1,510,080+00 3.06% Aaa I AA+ 0.45 1.75%Due 9/112015 Dw% 1,509,703.59 0.24% 1,458.33 376.41 AAA 0.44 3139BA3T7 FNMA Callable Note 1X 3212011 2,000,000.00 1224/2014 2,025,660.00 100.85 2,016,934.00 4.08% Aaa/AA+ 0.48 2%Due 92112015 0.25% 2,016,502.53 0.21 % 1,111.11 431,17 AAA 0.47 31331J2S1 FFCB Note 2,000,000.00 1212MO14 2,021,180.00 100.77 2,015.432.00 4.10% Ann/AA+ 0.0 1.5%Due 111162015 0.29% 2,015,062.80 0.26% 11,250.00 369.20 AAA 0.62 31338OL96 FHLB Note 2,000,000.00 121242014 2,003,320.00 100.17 2,003,474.00 4.06% Aaa I AA- 0.64 0.5%Due 11/202015 0.32% 2,002,351.25 0.23% 3,638.89 1,122.75 AAA 0.63 21,475,171.15 21,449,605.45 43.43% Aaa/AA+ 0.32 Total Agency 21,400,000.00 0.19% 21,448,805.53 0.15% 30,652.77 2,799.92 Aaa 0.31 COMMERCIAL PAPER 06538CTV3 Bank of Tokyo Mitsubishi NY Discount 1,000,000.00 02202015 999,020.00 99.93 999,307.78 2.02% P-1/A-1 0.25 CP 0,28% 999,307.78 0,28% 0.00 0.00 F-1 0.25 0.28%Due 6I292015 89233HVB7 Toyota Motor Credit Discount CP 1,000,000.00 02/092015 998,627.50 99.90 999,010.00 2.02% P-1/A-1+ Dw 0.27%Due 8/11/2015 0.27% 999,010.00 0.27% 0.00 0.00 F-1 0.36 69349M22 PNC Bank Discount CP 500,000.00 12/102014 498,601.39 99A4 499,187.22 1.01 % P-1/A-1 0.42 0.38%Due 9/2/2015 0.39% 499,187+22 0.39% 0.00 0.00 F-1 0.42 2,496,2A8.89 2,497,505.00 5.05% P-1/A-1 0.33 Total Commercial Paper 2,500,000.00 0.30% 2,497,505.00 0.30% 0.00 0.00 F-1 0.33 Chandler Aseel Management-CONFIDENTIAL Execution rime:4M=0151:53:34 PM 42 CAROrangeCounty Sanitation District Liquid Holdings Report Account#10282 As of 3/31115 Purchase Data Cost Va!ue Md Price Market Value %of Pod. MI Maturity CUSIP Security Description Par Value/Units Book Yield Book V.us Mkt YTM Accrued Int. Gaiall-oas Fitch Duration MONEY MARKET FUND FI 261908107 Dreyfus Short-Intermediate Gov Treasury 4,424,183.84 Various 4,424,183S4 1.00 4,424,183,84 894% Ads/AAA D00 Cash Management Fd521 0.01 % 4,424,183.84 0.01 % 0.00 0.00 AAA 0.00 4,424,183.84 4,424,183.84 6.94% Aaa/AAA 0.00 Total Money Market Fund FI 4,424,183.84 0.01% 4,424,183.84 0.01% 0.00 0.00 As. 0.00 US CORPORATE 459200HD6 IBM Corp Note 1,000,000.00 12122/2014 1,001,88000 10004 1,000,400,00 203% Aa3/AA- 0.11 035%Due 5/11/2015 0.25% 1,000,552S4 0.39% 2,916A7 (152.94) A. 0.11 149121509 Caterpillar Finance Sery Corp Note 1,000,000.00 12I22/2014 1,003,340.00 100.15 1,001.482.00 2.03% A2/A 0.16 1.1%Due 5129/2015 0.31 % 1,001,257.92 0.18% 3,727.78 224.08 A 0.16 149123BY6 Caterpillar Inc.Note 1,000,000.00 12/22/2014 1,003,280.00 100.16 1,001,630.00 2.03% A2/A 0.24 0.95%Due 6126/2015 D29% 1,001,549.89 D26% 2,506.94 BO.11 A 0.24 36962G5Z3 General Electric Capital Corp Notes 1,000,000.00 12/22/2014 1,005,820.00 100.30 1,003,034.00 2.04% At/AA+ 0.25 1.625%Due 71M015 0.50% 1,002,84B.09 0.42% 4,017.36 185.91 NR 0.25 24422ERV3 John Deere Capital Carp Note 1.008,000.00 12/22/2014 1,009,340.64 100A3 1,009,321.49 2.04% A2/A 0.43 0.7%Due 91412015 0.51 % 1,008,829.92 0.39% 529.20 491.57 NR 0.42 808513AH8 Charles Schwab Corp Note 1,000,000.00 12/29/2014 1,002,700.00 100.23 1,002.276.00 2.03% A2/A 0.68 0.85%Due 1214/2015 0.56% 1,001,984.82 0.51 % 2,762.50 291.18 A 0.67 22160KAD7 Costco Wholesale Corp Note 1,000,000.00 12/29/2014 1,001,340.00 100.13 1,001,324.00 2.03% Al IA+ 0.69 0.65%Due 12/7/2015 D51 % 1,000,988.20 0.46% 2,05B.33 335.80 A+ 0.68 46623FJU4 JP Morgan Chase Note 1,000,000.00 03120/2015 1,002,380.00 100.24 1,002,415.00 2.03% A3/A 0.91 1.125%Due 2/26/2016 0.86% 1,002,330.71 0.86% 1,093.75 84.29 A+ 0.90 8,030,080.64 8,021,882.49 16.26% A21A+ 0.43 Total US Corporate 8,008,000.00 0.47% 8,020,342.49 0.43% 19,612.53 1,540.00 A 0.43 US TREASURY 912828SZ4 US Treasury Note 2,000,000.00 12/31/2014 2,002,506.70 100.06 2,001,250.00 4.05% Add/AA+ 0.21 0.375%Due 6/15/2015 0,10% 2,001,146+36 008% 2,204.67 103,64 AAA 0.21 912828TK6 US Treasury Note 3,500,000.00 01/23/2015 3,502,882+82 100.05 3,501,641.50 7.08% Asia/AA+ 0.38 0.25%Due 8/15/2015 0.10% 3,501,950.56 0.13% 1.087.71 (309.06) AAA 0.38 912828VY3 US Treasury Note 3,500,000.00 01116/2015 3,503,156.26 100.05 3,501,tut1.50 7.08% Add I AA+ 0.50 0.25%Due 9130/2015 0.12% 3,502,270.51 0.16% 23.91 (629.01) AAA 0.50 912828TX8 US Treasury Note 4,000,000.00 02/13/2015 4,006,419.65 100.10 4,004,06,tD0 8.11 % Aaa/AA+ 0.63 0375%Due 11/15/2015 016% 4,00540103 021 % 5,676.80 (1,337.03) AAA 0.62 13,014,965.43 13,008,597.00 26.32% Ads/AA+ 0." Total US Treasury 13,000,000.00 0.12% 13,010,768.46 0.15% 8,993.09 (2,171.46) Aaa 0." 49,440,649.95 49,401,773.78 100.00% Art IAA+ 0.35 TOTAL PORTFOLIO 49,332,183.84 0.21 % 49,399,605+32 0.19% 59,258.39 2,168.46 Aaa 0.34 Chandler Asset Managemenl-CONFIDENTIAL Execution rime:4M=0151:53:34 PM 43 TOTAL MARKET VALUE PLUS ACCRUED 49,461,032.17 Chandler Asset Management-CONFIDENTIAL Execution rime:4M=0151:53 30 PM 44 C/" OCSD Lehman Exposure Holdings Report Account#1021114 As of 3/31115 Purchase Data Cost Va!ue MId Price Market Value %of Pod. MI Maturity CUSIP Security Description Par Value/Units Book Yield Book V.us Mkt YTM Accrued Int. Guall-oas Fiteh Duration COMMON STOCK SLIFOPNTA4 Lehman Brothers,Inc Open Position 104,812.50 11/21/2014 104,812SO 042 44,283,28 1500% NRINR 0.00 Long Exposure 000% 104,812.50 000% ODO (60,529.22) NR 0.00 Due 3/3112015 104,812.50 44,283.28 15.00% NR/NR 0.00 Total Common Stock 104,812.50 NIA 104,812.50 0.00% 0.00 (60,wen) NR 0.00 US CORPORATE L ME- 525ESCIB7 Lehman Brothers Note-Defaultetl 600,000.00 09/1912008 406,606.83 9.75 58,500.00 19.81 % NR/NR 0.82 Due 1/24/2016 0.00% 406,604A3 0.00% 0.00 (348,104.83) NR Dw 525ESCOV6 Lehman Brothere Note-Defaulted 2,000,000.00 09118/2008 1,366,718.96 9.63 192,500.00 65.19% NR/NR 34.59 Due 10/2212049 0.00% 1,366,718.96 0.00% 0.00 (1,174,218.96) NR 0.00 1,773,323.79 251,000.00 85.00% NR/NR 26.72 Total US Corporate 2,600,000.00 NIA 1,773,323.79 0.00% 0.00 (1,522,323.79) NR 0.00 1,878,136.29 295,283.28 100.00% NR/NR 22.71 TOTAL PORTFOLIO 2,704,812.50 NIA 1,878,136.29 0.00% 0.00 (1,582,853.01) NR 0.00 TOTAL MARKET VALUE PLUS ACCRUED 295,283.28 Chandler Aaea Management-CONFIDENTIAL Exe.Won Time:4M=0151:35:29 PM 45 Rating Agency Comparisons A summary of investment grade ratings are listed below. More complete descriptions of Moody's and Standard & Poor's ratings are included in the following pages. Quality/Grade Moody's Standard & Poor's Fitch Best Quality Aaa AAA AAA High Quality Aal AA+ AA+ Aa2 AA AA Aa3 AA- AA- Upper Medium Grade Al A+ A+ A2 A A A3 A- A- Medium Grade Baal BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB1 Moody's - Investment Grade "Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. "Aa" - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. "A" - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future. Mae" - Bonds which are rated Baa are considered as medium grade obligations; i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Bonds in the As, A, and Bee are also assigned "1", "2", or "S' based on the strength of the issue within each category. Accordingly, "At" would be the strongest group of A securities and "AY would be the weakest A securities. Be, B, Caa, Ca, and C - Bonds that possess one of these ratings provide questionable protection of interest and principal ("Be" indicates some speculative elements; "B" indicates a general lack of characteristics of desirable investment; "Caa" represents a poor standing; "Ca" represents obligations which are speculative in a high degree; and "C" represents the lowest rated class of bonds). "Caa", "Ca" and "C" bonds may be in default. Standard and Poor's-Investment Grade AAA - Debt rated "AAA" has the highest rating assigned by S&P. Capacity to pay interest and repay principal Is extremely strong. AA - Debt rated "AA" has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in small degree. A - Debt rated "A" has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. BBB - Debt rated "BBB" is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories. Standard and Poor's - Speculative Grade Ratina Debt rated "BB", "B", "CCC", "CC" and "C" is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. "BB" indicates the least degree of speculation and "C" the highest. While such debt will likely have some quality and protective characteristics these are outweighed by major uncertainties or major exposures to adverse conditions. BB - Debt rated "BB" has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments. The "BB" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "BBB" rating. B - Debt rated "B" has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal. The "B" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "BB" or"BB" rating. CCC - Debt rated "CCC" has a currently identifiable vulnerability to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The "CCC" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "B" or"B" rating. CC - The rating "CC" typically is applied to debt subordinated to senior debt that is assigned an actual or implied "CCC" debt rating. C - The rating "C" typically is applied to debt subordinated to senior debt which is assigned an actual or implied "CCC" debt rating. The "C" rating may be used to cover a situation where a bankruptcy petition has been filed, but debt service payments are continued. Cl -The rating "Cl" is reserved for income bonds on which no interest is being paid. D - Debt rated "D" is in payment default. The "D" rating category is used when interest payments or principal payments are not made on the date due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The "D" rating also will be used upon the filing of a bankruptcy petition if debt service payments are jeopardized. Plus (+) or Minus (-) - The ratings from "AA" to "CCC" may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. NR - Indicates no rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular type of obligation as a matter of policy. b a e �- April 30, 2015 STAFF REPORT Certificates of Participation (COP) Quarterly Report for the Period Ended March 31, 2015 Summary The District began issuing Certificates of Participation (COPS) in 1990. These COPS were a part of our long-term financing plan that included both variable interest rate and traditional fixed rate borrowing. Following are the current outstanding debt issues of the District: In May 2007, the District issued $95.18 million of fixed rate COPs, Series 2007A refunding a portion of the Series 2003 fixed rate debt. The true interest cost for the issue is 4.5 percent. In December 2007, the District issued $300 million of fixed rate COPs, Series 2007B at a true interest cost of 4.71 percent for the issue. In September 200B, the District issued $27.8 million of fixed rate COPs. Series 2008B refunding the Series 1993 variable rate debt. The true interest cost for the issue is 2.96 percent. In May 2009, the District issued $200 million of fixed rate COPS, Series 2009A at a true interest cost of 4.72 percent for the issue. In May 2010, the District issued $80.0 million of fixed rate BABs, Series 2010A at a true interest cost of 3.68 percent for the issue. In December 2010, the District issued $157.0 million of fixed rate BABs, Series 2010C at a true interest cost of 4.11 percent for the issue. In October 2011, the District issued $147.595 million of fixed rate COPS, Series 2011A refunding a portion of the Series 2000 variable rate debt and a portion of the Series 2003 fixed rate debt. The true interest cost for the Issue is 2.61 percent. OCSD ♦ P.O.Sox 8127 , Founlaln Valley,CA 92 72 8-0127 4 (714)982 2411 Quarterly COP Report For the Three Months Ended March 31, 2015 Page 2 of 2 In March 2012, the District issued $100.645 million of fixed rate COPs, Series 2012A refunding the Series 2003 fixed rate debt. The true interest cost for the issue is 3.54 percent. In August 2012, the District issued $66.395 million of fixed rate COPs. Series 2012B refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50 percent. With the issuance of Series 2012B, there remains no variable interest rate COPs at the District. In August 2014, the District issued $85.090 million of fixed rate COPS, Series 2014A, refunding a portion of Series 2007B debt. The true interest cost for the issue is 2.34 percent. In October 2014, the District issued $120.850 million of fired rate CANs, Series 2014B, refunding the Series 2013A CANS. The true interest cost for the issue is 0.41 percent. In February 2015, the District issued $127.510 million of fixed rate COPS, Series 2015A, refunding $152,990,000 of the Series 2007B debt. The true interest cost for the issue is 3.30 percent. Additional Information The graph entitled, "OCSD COP Rate History Report," shows the various fixed interest rates of the District's eleven debt issues. Attachments 1. Graph - OCSD COP Rate History Report Prepared by Finance,42312015,10:26 AM OCSD COP RATE HISTORY REPORT MARCH 2O15 6.00 6A0 4.00 e w � 9.00 2.00 1.00 0.00 GATE —7r 5Mes F� �e 2at21FlVE �SWa T01]B Fdee ROItA Flsse —Se-...SAF. —Bviea2 BMW .B -.Flx —4.s201MFl-d �Sm sM10C FPS 2alae%0 �SWl 201C FizeE 9x G:1exml dt ffln17220kgeggifinanme ATEHIST.97 FY 2014-15 Third Quarter Financial Report This Page Intentionally Left Blank ORANGE COUNTY SANITATION DISTRICT FINANCIAL MANAGEMENT DIVISION 10844 Ellis Avenue Fountain Valley, California 92708-7018 714.962.2411 www.oGsewers.com 03/31/15 ADMINISTRATION COMMITTEE MeedngDate TOBa.orDir. 0 5 /13115 Os/27/ls Item AGENDA REPORT N Number Item umber s Nu Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: 2015-16 OPERATIONAL INSURANCE RENEWALS GENERAL MANAGER'S RECOMMENDATION Approve not-to-exceed numbers as follows, with the understanding that the Sanitation District's insurance broker will continue to negotiate with insurers to seek the lowest possible premiums prior to the expiration date of the current major insurance policies: A. Excess liability insurance - $403,662. B. Excess workers compensation insurance - a rate of $0.3805 per $100 of payroll (estimated premium at$240,000). C. Property and Boiler & Machinery combined - $705,186. D. Earthquake insurance - $88,587. SUMMARY The Sanitation District budget provides funds for the renewal of the following four major insurances for District operations: 1) Excess General Liability Insurance 2) Excess Workers' Compensation 3) All-Risk Property and Flood insurance 4) Boiler& Machinery insurance These insurance policies expire each June 30, and the Sanitation District's insurance broker works with staff to procure renewals at the best rates available. The Committee in the past has asked that the insurance broker present not-to-exceed numbers in May rather than in June, so that the Committee is not presented with numbers at the very last minute. This year an affordable earthquake insurance quote is also presented, and money was included in the budget. The insurance broker's letter and not-to-exceed rates are attached, along with the informational Agenda Report presented to the Committee in March 2015. PRIOR COMMITTEE/BOARD ACTIONS June 2014 - The Board approved renewal of the above policies (other than earthquake insurance, for which no quote was presented) for the period July 1, 2014 through June 30, 2015. Page 1 of 2 ADDITIONAL INFORMATION N/A ATTACHMENT The following attachment(a) maybe viewed on-line at the OCSD website (mm w.ocsd.com) with the complete agenda package: • Alliant's letter dated April 30, 2015 with not-to-exceed rates • Administration Committee Agenda report March 11, 2015 • PowerPoint Presentation provided to Administration Committee 05-13-15 Page 2 of 2 44/liant DRIVER SPECIALTY GROUP April 30, 2015 Mr. Randall Kleinman Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 2015-2016 Insurance Pricing—"Not to Exceed" Indications Dear Randy: Attached please find the requested "not to exceed" 2015-16 premium estimates worksheet for OCSD's major property Rod casualty July 1 insurance renewals. As in prior years, it is too early in the marketing process to provide firm renewal proposals, but we do expect to have finalized numbers by the end of May. In addition to the estimates at the same retention and limit options, we are also providing estimates with higher retention/deductible options which have been requested. Brief commentary is provided here on each line of coverage Rod then other questions that have arisen over the course of our discussion are discussed. This year we are budgeting no change to the property insurance rate as although the property market is improving, we want to be conservative in providing a "not to exceed" number. Given that reported values are up 2%, this translates to a 2% premium change over last year. The current program consists of over 15 insurance carriers participating in a layered and quota share arrangement. All markets,plus others, we being asked to provide their best terms. The Liability program is expected to renew, conservatively, with nothing more than a 5% premium increase, so we are using this as a "not to exceed" number over last year's cost. The liability program currently consists of three carriers providing a $40MM limit with $500,000 retention. You will recall that last year OCSD opted to increase its retention from $250,000 to $500,000 and use the savings realized to increase the limit from $30MM to $40MM. This year the program is being shopped to three lead carriers and over fifteen excess carriers to gamer the best coverage and pricing terms. We are confident that the final cost will be within this figure. As mentioned at the March Administration Committee meeting, we continue to feel price pressure in the Excess Workers' Compensation arena as there has been little improvement in the expectations of the costs of caring for injured workers in the coming years. This year, the CSAC-EIA Excess Worker's Compensation program rates are increasing some 12% overall for the public utility class based on their actuarial projections of ultimate losses incurred in the forthcoming year. While this seems dramatic, we believe that the final quote from the EIA will remain competitive with the open market. Coupled with the reported decrease in payroll, we are expecting an 8%dollar change in premium over the prior year. As we have previously discussed, we are in the market obtaining alternative quotations for the workers compensation program, and expect to receive a response from five other providers. Alliant Insurance Services,Inc. • 100 Pine Sheet, 10 Floor•San Francisco,CA 94111 PEoeE(415)403-1400•w .allian6ns asrrae corn•License No.OC36861 A4/liant DRIVER SPECIALTY GROUP This year the District has asked us to obtain quotations for earthquake coverage for seven key buildings located at both Plants 1 and 2. You will recall that we have had multiple discussions regarding the cost and possible ways to structure earthquake coverage over the years. The District has also looked at different ways to insure the exposure, including options with different limits, deductibles and trigger points. The latest quote, based on the desired structure of coverage of fewer structures at a higher minimum deductible is a reasonable approach, and has proved to reduce the initial quotes that were in excess of$1,000,000 to $88,587. This quote is for the selected structures using a$25MM policy limit at a 5n/a/$5MM min. deductible level. As respects premium estimates with higher retention options, the attachment details our cost estimates for each major line of coverage at various retention/deductible levels. The key benefit of a higher retention (deductible) is a lower premium, and a secondary benefit is usually greater claims control. The detriment is the assumption of increased financial risk. Most entities attempt to set their retentions at a level which optimizes their risk taking ability. For the District, we believe that it has the financial capacity to absorb its current risk taking level, and probably could afford to take more risk. It should be noted that the District historically has taken significant risk in that no earthquake insurance was purchased on its physical plants, which would be considered meaningful in the context of an overall"insurable risk"discussion. To set an ideal retention level for each line of cover, an entity will usually engage an actuary, its broker, or rely on internal resources to perform an analysis of historical loss levels at various insurance attachment points. This analysis would naturally compare expected premium savings at various attachment levels with ultimately a judgment being made as to whether the savings for taking a higher retention are enough to offset the expected losses that will occur. The attached document provides the needed premium estimates to perform the analysis. In the past, the District has adjusted its retention levels by line of coverages when it was advantageous to do so. Finally, the District has asked us to pursue multi-yew policies. In the public entity space, the availability of such policies has been few and far between. In our marketing process, while obtaining the most competitive rates, we do attempt to build carrier stability into the program, and thereby try to obtain the benefits of longer term relationships. However, as the market is dynamic, it is unknown exactly year to year which market will be the most advantageous for any particular client. For this renewal, we are asking all of the markets approached if there is any premium benefit to lock-in a multi-year deal. We look forward to discussing the programs with you in more detail at your convenience. Ve ly Dennis Mul eeney Senior Vice President (415)403-1421 direct dmulaueenevnalliant.com Alliant Insurance Services,Inc. • 100 Pine Sheet, 10 Floor•San Francisco,CA 94111 Panne(415)403-1400•w .allian6nsurancexotn•License No.OC36861 OCSD 2015 Premium Estimates Dollar Percent Excess Liability 2014 2015 Change Change 1 st Excess- Security National Limit 10,000,000 10,000,000 - - SIR 500k/500k 500k/500k - - Premium 234,000 245,700 11,700 5% 2nd Excess- Starr Limit 20,000,000 20,000,000 Premium 115,090 120,845 5,755 5% 3rd Excess- Great American Limit 10,000,000 10,000,000 - - Premium 35,350 37,117.50 1,768 5% Self Insured Retention 500,000 500,000.00 0% 0% Total Limit 40,000,000 40,000,000 0% 0% Total Premium 384,440 403,662 19,222 5% Dollar Percent Excess Workers'Comp 2014 2015 Change Change Payroll 65,431,701 63,083,100 (2,348,601) 4% Limit Statutory Statutory Rate Per$100 0.3401 0.3805 0.04 12% SIR 750,000 750,000 - 0% Premium 222,527 240,000 17,473 8% Dollar Percent Property- Boiler&Machinery 2014 2015 Change Change Values 1,864,845,724 1,904,048,692 39,202,968 20/ Rate Per$100 0.038 0.038 - 0% Premium 705,186 720,010 1 14,824 2% Subtotal Premium-Major Lines Overall 1,312,153 1,363,672 51,519 4% Dollar Percent Property- Earthquake Option 2014 2015 Change Change Values - 61,216,088 n/a n/a Rate Per$100 - 0.145 n/a n/a Premium(Incl T&F) - 88,587 n/a n/a Total Premium-Major Lines, Including Earthquake Overall 1,312,153 1,452,259 140,106 11% OCSD 2015 Premium Estimates-Higher Retention Options Excess Workers'Comp Option 1 - Exp. Option 2 Option 3 Self Insured Retention 750,000 1,000,000 1,506,000 Payroll 63,083,100 63,083,100 63,093,100 Limit Statutory Statutory Statutory Rate Per$100 0.3805 0.3091 0.2235 Premium 240,000 195,000 141,000 Premium Change From Option 1: (45,000) (99,000) Rate Change From Option 1: -19% -41% SIR Change From Option 1: 33% 100% Property 2015 Option 1 - Exp. Option 2 Option 3 Deductible 250,000 500,000 1,000,000 TN 1,864,845,724 1,864,845,724 1,864,845,724 Rate Per$100 0.0378 0.0359 0.0343 Premium 705,186 670,186 640,186 Premium Change From Option 1: (35,000) (65,000) Rate Change From Option 1: -5% -9% Deductible Change From Option 1: 100% 300% General, Auto,EPLI Liability Option 1 - Exp. Option 2 Option 3 Self Insured Retention 500k/500k 750k/750k 1M/1M Limit 40,000,000 40,000,000 40,000,000 Retention 500,000 750,000 1,000,000 Premium 403,662 376,100 362,975 Premium Change From Option 1: (27,563) (40,688) SIR Change From Option 1: 50% 100% ATTACHMENT ADMINISTRATION COMMITTEE Needng Date To ad.of Dir. 03/11/15 -- AGENDA REPORT Item Number Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: STATUS OF 2015-16 INSURANCE RENEWALS GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Historically, the Administration Committee has asked for status updates regarding the renewals of major insurance policies each year. The Risk Management Division and the Sanitation District's operational insurance broker begin the process of renewal each January, and final quotes are typically received in June shortly before the beginning of the new fiscal year. The Sanitation District budget provides funds for the renewal of the following four major insurances for District operations: 1) Excess General Liability Insurance 2) Excess Workers' Compensation 3) All-Risk Property and Flood insurance 4) Boiler& Machinery insurance PRIOR COMMITTEE/BOARD ACTIONS June 2014 - The Board approved renewal of the above four policies for the period July 1, 2014 through June 30, 2015. ADDITIONAL INFORMATION 1) Excess General Liability Insurance Program The Sanitation District's Excess General Liability Insurance Program is currently provided through the California Municipal Excess Liability Program (CAMEL) and its sister program, the Alliant National Municipal Liability Program (ANML). The Sanitation District has participated in the CAMEL program since FY 1996-97. Page 1 of 3 ATTACHMENT ADDITIONAL INFORMATION (cont'd) This program currently provides the Sanitation District with a $40 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices, and Public Officials Errors & Omissions coverage. The $40 million coverage has a self-insured deductible of $500,000. Since 1997, the Employment Practices portion of coverage has been enhanced from a $2 million sub-limit to the full policy limit. The actual insurance coverage currently consists of three separate layers. The first layer is the "Basic" $10 million program with self-insured retention of $500,000. The second layer consists of $20 million of coverage in excess of the first layer of $10 million. The third layer is $10 million of coverage in excess of the second layer. The premium for 2014-15 for the three layers was $384,440. 2) Excess Workers' Compensation Insurance The Excess Workers' Compensation insurance coverage is with the California State Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation District has participated in this program or its predecessor since 2003. Excess Workers' Compensation Program currently provides so-called "Statutory" (unlimited) coverage with a self-insured retention (SIR), or deductible, of$750,000. The use of Excess Workers' Compensation Insurance dates back to the late 1980's. At that time, the Fiscal Policy Committee approved an SIR, or deductible, of $250,OOO, for such coverage. Due to the hardening of the workers' compensation market, this deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERC) that provided coverage at the time of $25 million with a self-insured retention (SIR), or deductible of$500,000. Some additional risk may be associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members if an unusually large number of losses were to occur outside of the actuarial evaluation estimates. However, historically the CSAC EIA premiums for excess workers compensation have been so much less than competing quotes available to the Sanitation District that even if there were a surcharge, the cost might still continue to be cheaper. The renewal of the Excess Workers' Compensation Insurance for the period July 1, 2014 through June 30, 2015 was at an estimated premium of$222,527 based on the estimated 2014-15 payroll. Since the premium itself is based on final payroll, the Sanitation District will not know the exact final premium until the year is over. Page 2 of 3 ATTACHMENT ADDITIONAL INFORMATION (cont'd) 3) All-Risk Property and Flood Insurance The All-Risk Property and Flood Insurance Program (Property Insurance) provides for comprehensive coverage for much of the Sanitation District's real and personal property regarding virtually all perils including fire, flood, and business interruption. The Sanitation District previously carried earthquake insurance as part of its Property Insurance, but in the last few years earthquake insurance has been impossible to obtain or not cost-effective. The Sanitation District asks its insurance broker each year to survey the market to see if rates have changed. Current Property Insurance limits are $1 billion for most perils other than flood and earthquakes, and $300 million for flood, with many sub-limits for various situations. In order to reach $1 billion in limits, the broker had to arrange for more than a dozen different insurers. The SIR is $250,000 per occurrence for most types of losses. Since the late 1990's, the Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the world's largest property programs. It is important to note that this joint purchase property insurance program offers the purchasing power of numerous large public entities without the pooling or sharing of coverage or losses. The renewal of All-Risk Property and Flood Insurance for the period July 1, 2014 through June 30, 2015 was at a premium of$682,006. 4) Boiler& Machinery Insurance The Boiler & Machinery insurance program provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. The current Boiler & Machinery insurance program provides coverage ($100 million per occurrence with deductibles ranging from $25,000 to $350,000) for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the boiler& machinery insurance. This program augments the Sanitation District's all-risk property insurance that covers perils such as fire and flood. The renewal of the Boiler & Machinery Insurance Program for the period July 1, 2014 through June 30, 2015 was at $23,180. Page 3 of 3 Orange County Sanitation District SANi "', MF .- Administration Committee Meeting May 1311 2015 Agenda Item No. 5 2015-16 Operational Insurance Renewals ©2015 Alliant Insure reserved. Presentation Outline Major Program Renewals Public Entity Liability Excess Workers' Compensation Property and Boiler & Machinery New Coverage Proposal Earthquake Questions ©2015 Alliant Insunance Services,Inn AIL..W.MgllllllllM Public Entity Liability Coverage for damages to third parties arising District negligence . Includes : General Liability Automobile Liability Public Entity Errors and Omissions Professional Liability Directors and Officers Liability - Employment Practices Liability All cover provided on an "Occurrence" Basis ©2015 Alliant Insurence Services,Ind reserved. MM Public Entity Liability — Limits and Retentions Policy Limits — Per Occurrence/Annual Aggregate General : $ 40MM/$40MM Automobile : $ 40MM/$40MM E&O/D&O/EPL: $ 40MM/$40MM Policy Retentions • General : $ 500,000 • Auto : $ 500,000 Ei E&O/D&O/EPL: $ 500,000 Expiring Premium : $ 384,440 ©2015 Alliant Insure reserved. Excess Liability — Structure Chart PJ Jsy i} c,'� - G52�3J CompanyBerkley National Insurance Policy # CEX09600351-01 ��s!>1ri?yJ`J�ri�iJ�l liliJi'J7ls� J_3 r.�irJp�rJy D�Js`/ i J JJJ .'mid}f JLSJf.�,J i3d5�➢S1JL �DD,DD9 ©2015 Alliant Insumnce Services,In 2015 Liability Marketing LEAD MARKETS RESPONSE Security National Ins. Co. (ANML) $10M x $500,000 SIR—Not to Exceed $245,000 Berkley Incumbent— Quote Pending Great American Incumbent— Quote Pending ACE Public Entity Res once Pendin — Anticipated Response 5115115 AIG Response Pending— Follow up 5/13/15 Allied Public Risk(AWAC) Response Pending— Follow up 5/13/15 Alteris Public Risk Solutions (Argo) Declined - cannot compete Brit Res onse Pendin — Follow up 5113115 Catlin Declined—public entity in CA is not within carrier's appetite Civic Risk Response Pending— Follow up 5/13/15 Genesis Response Pending— Follow up 5113115 HCC Response Pending— Follow up 5/13/15 Markel Declined—cannot compete Munich Reinsurance American Risk Declined— cannot compete, pricing would be at least 35% higher One Beacon Declined—public entity in CA is not within carrier's appetite Old Republic Specialty Insurance Declined— cannot compete Travelers Declined— cannot corTete 1 ©2015 Alliant Insumnce Services,Inc 2015 Liability Marketing EXCESS MARKETS RESPONSE General Star Declined—not willing to provide excess coverage when ANML form is underlying Berkley Incumbent—Quote Pending Great American Incumbent—QuotePendi ACE Westchester Specialty Group Response Pending—Follow up 5113115 AIG Response:Pending—Follow up 5/13/15 Alteris Public Risk Solutions (Argo) Declined-cannot coinpete Arch Response:Pending—Follow up 5/13/15 Aspen Response Pending—Follow up 5/13/15 AWAC Response:Pending—Follow up 5/13/15 AXIS Response Pending—Follow up 5/13/15 Berkshire Hathaway Specialty Ins. Response:Pending—Follow up 5/13/15 Civic Risk(Scottsdale Paper) Response Pending—Follow up 5/13/15 Colony Response Pending—Follow up 5/13/15,carrier would only consider the highest/top highest/top layer of limits Cover Response Pending—Follow up 5/13/15 Houston Casualty Company Response Pending—Follow up 5/13/15 honshore Res once Pending—Follow up 5/13/15 Markel Response Pending—Follow up 5/13/15 Munich Reinsurance American Response:Pending—Follow up 5/13/15 Navigators Res once Pending—Follow 5/13/15 RLI Response Pending—Follow up 5/13/15 Torus Response Pending—Follow up 5/13/15 ©2015 Alliant Insura Inc Liability Marketing Summary OCSD Package of Insurance Marketed to : 17 Lead Carriers 21 Excess Carriers 29 Separate Insurance Companies 7 Excess markets have for various reasons (Operations/Pricing) 6 Excess markets have maximum capacity of $10 mil 3 Excess markets prefer to attach at $25 mil Results "Not to Exceed" Cost $403,662 ©2015 Alliant Insure emd. Excess Workers' Compensation Coverage for injuries to employees while in the course and scope of employment o Limits Statutory Ei Retention $750,000 • Payroll $65,431,701 • Expiring Premium $222,527 ©2015 Alliant Insunance Services,Inn AIL..W.MgllllllllM Excess Workers' Comp — Structure Chart flj:uAwnaj1 Jnirin (AJ r) CompanyACE American Insurance t5AE--�JA PJJJ E)Ji1�i�i1r� as��a�n lYlarn�)Ei S1f3 1nJ _j�l`lllYl t�y -E)P ?fJJJj8j, Jy W8555,u from of ?) Sell Jfh UT&j R1 rwm1vn »75U,DUJ ©2015 Alliant Insurance Services,Inc Excess Workers Comp - Marketing Markets Status Notes Arch Awaiting Quote In the past, could not compete with EIA Midwest Employers Declined Can't attach at $750k, or provide stat limits. Tower Declined Will only do short buffer layers - did not approach Safety National Declined "Have had no success competing with EIA - only succesful on 1 account in 20 ears." US Specialty Reviewing Will only quote on a cash flow basis Midlands Magic) Awaiting to Maximum limits are $50 million- Need to build to Star. XL Declined Can't write monoline coverage Liberty Declined Not actively pursuing stand alone coverage ACE Incumbent Excess Carrier for EIA AIG Incumbent Excess Carrier for EIA 1 ©2015 Alliant Insurance Sew ices,Inc A mod Excess Workers' Compensation Incumbent CSAC EIA — Seeking an increase of 8% Competition Submitted to 8 Other Insurance Companies Declinations 5 Declinations for various reasons from "not competitive" to not willing to offer Statutory limits or desired attachment Pending 3 Carriers are working to offer quotes Not to Exceed : $240,000 ©2015 Alliant Insurance Services,Inc Property Insurance - Overview Coverage for damage to real and personal property of District, or others where required . • Total Insurable Value: $1,904,048,692 • Policy Limit: $1,000,000,000 • Key Sublimits • Boiler & Machinery: $100,000,000 • Business Interruption: $100,000,000 • Flood Zones A&V: $150,000,000 • Flood All Other Zones: $300,000,000 • Course of Construction: $50,000,000 • Terrorism $500,000,000 ■ Deductible: $250,000 ©2015 Alliant Insurenee Services,Inc Property Structure Chart 318 $ROOM%6 SBOOM EROOM Xfi E000M SWISS RE ONE 6EACON-HOMELAND IBOOM 300MXS SOOM %L AMERICA EfOOM S100M%S$$OOM LEXINGTON SWOM 81RSM%3 WINK $125M%5$275M $1 RSM X5 Ex]SM OYO' SWISS RE A RE PARTNER I RE ALE EURO PEAN GROUP $75M X5$200M $75M XS$ROOM $T5M%3$200M LEXINGTON IRONSI LANCASHIRE $17SM%6 Wm $75M X6 NR5M $TOM X6 N05M $75M%5$125M ACE E IS.. LE%INGT ON ENOMRIWCE SWISS RE GEP LANCA6HIRE LLOYDI E1xfM $T5M%S SEOM $25M X8$100M $37.5%S NI $75M X8$SOM S100M XS$25M AXI$UN ENDURANCE ARCH Loom — LLOYD'S f50M%8 S60M IRONSXORE USA MIS SPECIALTY 0 MA NMSPECIALTY ESSE% LLOYD'8 IRON.tH RE {SOM $RSM%$ RSM SRU-NAP XILA AWAC SCOTTSDALE LLOYD'8 NIL 8R3.SMX5$R.SM 777 LEXINGTON 10.00% D'3 $11M M LE%INGTONILLOYd6 I ©2015 Alliant Insulance Services,Inc Property Marketing ■ Incumbent — Public Entity Property Insurance Program A consortium of 19 carriers led by AIG & Lloyd's of London in a layered and quota share program. Expecting flat rate renewal as worst case scenario. ■ Competition Travelers Zurich Hartford Munich Re SwissRe Affiliated FM ■ PENDING 6 Awaiting feedback from carriers I ©2015 AIIiant Insumnce Services,Inc Major Programs - Rate History am am asoB aaoB —Property&Boiler Liability Excess WC Q300 0.200 am t10 01 02 03 03 05 08 01 08 09 10 11 12 13 14 ©2015 Alliant Insurance Services,Inc Earthquake Discussion ■ Current Quote • Coverage for seven key buildings located at both Plants 1 and 2 valued at $61MM • $25,000,000 Limit • Carriers: - Princeton : 10,000,000 (40%) part of $25,000,000 - Everest: 8,750,000 (35%) part of $25,000,000 - Gen. Security: 6,250,000 (25%) part of $25,000,000 • Premium : $88,587 • Deductible 5% ©2015 Alliant Insurenee Services,Inc Questions ? • Optional Retentions • Carrier Strength • Carrier Regulations • Multi -Year Policies ©2015 Alliant Insurence Services,In ITEM NO. 16A MINUTES OF THE STEERING COMMITTEE SPECIAL MEETING Orange County Sanitation District A Special Meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Beamish on Thursday, April 16, 2015 at 3:30 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT Tom Beamish, Chair Bob Ghirelli, Assistant General Greg Sebourn, Operations Committee Manager Chair Kelly A. Lore, Acting Clerk of the Board Keith Curry, Member-At-Large Jim Colston, Environmental Affairs Steve Jones, Member-At-Large Manager David Shawver, Member-At-Large Norbert Gaia Al Garcia Roya Sohanaki COMMITTEE MEMBERS ABSENT: John Nielsen, Vice-Chair John Withers, Administration OTHERS PRESENT: Committee Chair Kathy Jenson, Rutan and Tucker, Independent Counsel to Steering Committee Melissa Thorme, Downey Brand Special Prosecutor for OCSD (via Teleconference) Matthew Kaplan, Tucker Ellis LLP, Counsel for Klean Waters, Tim Miller and Shaun Miller (via Teleconference) Deborah Blanchet, Court Reporter, Golkow T&C PUBLIC COMMENT: None. Ms. Jenson, Rutan and Tucker, Independent Counsel to Steering Committee, stated corrections to the Written Determination and Order of Steering Committee that was delivered to the parties, were submitted by Ms. Thorme and Ms. Jenson. A copy of the corrected brief was delivered to the Committee. Minutes of the SPECIAL Steering Committee Meeting April 16, 2015 Page 2 of 2 Mr. Kaplan, Tucker Ellis LLP, Counsel for Klean Waters, Tim Miller and Shaun Miller, noted for the record, that he had objected to the corrections being introduced in an email delivered to Ms. Jenson. The consensus of the Committee was to allow the suggested changes as introduced by Ms. Thorme and Ms. Jenson. NON-CONSENT ITEMS: 1. KLEAN WATERS APPEAL HEARING MOVED, SECONDED AND DULY CARRIED TO: Adopt the Written Determination and Order of Steering Committee, as presented, pursuant to Subpart D of Section 618 of Ordinance OCSD-39, on the appeal of the December 11, 2014 decision of the Sanitation District's General Manager James D. Herberg, imposing: 1) a revocation of Industrial Wastewater Discharge Permit No. 52-1-841, and 2) an administrative civil penalty in the amount of$1,190,000. The original order was fully executed and filed with the Clerk of the Board. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: The Chair declared the meeting adjourned at 3:45 p.m. to a regular Steering Committee meeting to be held, April 22, 2015 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board ITEM NO. 16B MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, April 22, 2015 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Beamish on Wednesday, April 22, 2015 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Tom Beamish, Chair Jim Herberg, General Manager John Nielsen, Vice-Chair Bob Ghirelli, Assistant General Greg Sebourn, Operations Committee Manager Chair Rob Thompson, Director of John Withers, Administration Engineering Committee Chair Lorenzo Tyner, Director of Finance & David Shawver, Member-At-Large Administrative Services Ed Torres, Director of Operations & COMMITTEE MEMBERS ABSENT: Maintenance Keith Curry, Member-At-Large Nick Arhontes, Director of Facility Steve Jones, Member-At-Large Support Services Kelly A. Lore, Clerk of the Board Jennifer Cabral Ann Crafton Norbert Gaia Al Garcia Stephanie Good Andrew Nau Rich Spencer OTHERS PRESENT: Brad Hogin, General Counsel Steve Filarsky, Consultant Doug Daver, EOCWD PUBLIC COMMENTS: None. REPORTS: Chair Beamish reported on the following: April 13th Legislative and Public Affairs meeting, Public Affairs and lobbyists updates; GWRS meeting expansion 04/22/2015 Steering Committee Minutes Page 1 of 6 celebration/ribbon cutting; and Audit Ad Hoc committee meeting, draft audit review, final report will be presented to the Administration Committee in July. General Manager Herberg reported briefly on the Klean Waters matter which has been referred to Federal Court. He stated that staff is carefully monitoring the situation. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve Minutes of the March 25, 2015 Regular Steering Committee Meeting; and B. Approve Minutes of the March 27, 2015 Special Steering Committee Meeting; and C. Approve Minutes of the April 10, 2015 Special Steering Committee Meeting. AYES: Beamish; Nielsen; Seboum; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Curry and Jones 2. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve and authorize the execution of the amended compensation agreement with the City of Garden Grove and other taxing entities within the meaning of Health and Safety Code Section 34180(f), as required by the California Department of Finance. AYES: Beamish; Nielsen; Seboum; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Curry and Jones 04/22/2015 Steering Committee Minutes Page 2 d 6 NON-CONSENT CALENDAR: Director of Facility Support Services Nick Arhontes provided an update as to the transfer process and the reason for the Amendment. Chair Beamish stated that the transfer of local sewers is part of the OCSD Strategic Plan, including this transfer, which was offered to the City of Tustin, and when they declined, the East Orange County Water District (EOCWD) accepted and began the application. Director Withers supported extending the agreement with EOCWD, but stated that approximately 5 weeks ago, IRWD submitted a competing proposal application for the transfer as well. It was his understanding that EOCWD withdrew their first application, made several revisions and recently submitted a new application a few days ago. He requested that OCSD enter into a similar agreement with IRWD. Chair Beamish also supports extending the agreement with EOCWD, and stated that this agreement should be the template terms and conditions for whomever would be taking over local sewer systems. Vice-Chair Nielsen, supports the amendment to the agreement. He stated that OCSD Board of Directors voted and entered into an agreement with EOCWD, they have spent a great deal of time and money to bring forward to LAFCO, and feels we should continue to support our original decision and not enter into an agreement with any other agency. Doug Davert, Vice President, EOCWD clarified that the original application has been filed for over a year, never withdrawn, and just recently amended their plan of service, based upon refined financials with new information received from OCSD. Discussion ensued. 3. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve first amendment to Agreement with East Orange County Water District (EOCWD), relating to the proposed transfer of ownership of local sewers in Service Area 7, and the appropriate reserve balances. AYES: Beamish; Nielsen; Seboum; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Curry and Jones 04/22/2015 Steering Committee Minutes Page 3 d 6 Assistant General Manager, Bob Ghirelli provided a short presentation on the policy and selection process of the Honor Walk. 4. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve nominated retired employees, Jim Ruth and Bill Wallin, as Honor Walk brick recipients for the year 2015. B. Consideration of past Board Member Shirley McCracken and former Board of Director's Legal Counsel, Tom Woodruff as Honor Walk brick recipients for the year 2015. AYES: Beamish, Nielsen, Seboum, Shawver and Withers NOES: None None ABSENT: Curry and Jones Director of Engineering, Rob Thompson provided a short PowerPoint presentation on this item. 5. MOVED, SECONDED, AND DULY CARRIED TO: Direct the General Manager to work through the Operations Committee for the decisions necessary to implement the replacement or retrofit of the Administrative Facilities including the Administration Building, Human Resources Building, Laboratory, Fleet Services Buildings, Purchasing Building, and multiple office trailers at Plant No. 1. AYES: Beamish, Nielsen, Seboum, Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Curry and Jones Labor negotiator, Steve Filarksy stated that this item represents the Board directive and mirrors the MOU's previously approved for the other bargaining units. 6. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 15-10, entitled, "A Resolution of the 04/22/2015 Steering Committee Minutes Page 4 of 6 Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation District and the International Union of Operating Engineers, Local 501 (Local 501), for Fiscal Years 2014/2015 & 2015/2016" and B. Direct staff to finalize and sign the Memorandum of Understanding (MOU) between Orange County Sanitation District and the Local 501 bargaining unit. AYES: Beamish, Nielsen, Seboum, Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Curry and Jones INFORMATION ITEMS None. CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1); 54956.9(d)(2); 54956.9(d)(4); and 54957.6 The Committee convened in closed session at 5:25 p.m. to discuss four items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:58 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION None. 04/22/2015 Steering Committee Minutes Page 5 of 6 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: The Chair declared the meeting adjourned at 5:58 p.m. to the next Steering Committee meeting to be held on Wednesday, May 27, 2015 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 04/22/2015 Steering Committee Minutes Page 6 d 6 ITEM NO. 17 MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Monday, May 11, 2015, at 8:00 a.m. A regular meeting of the Legislative and Public Affairs Committee was called to order by Chair Beamish on Monday, May 11, 2015, at 8:00 a.m. in the Administration Building of the Orange County Sanitation District. Director Diep led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS STAFF PRESENT PRESENT: Jim Herberg, General Manager Tom Beamish, Board Chair Bob Ghirelli, Assistant General John Nielsen, Board Vice-Chair Manager Tyler Diep, Director Nick Arhontes, Director of Facilities Robert Kiley, Director Support Services Greg Sebourn, Director Rob Thompson, Director of Engineering John Withers, Director Ed Torres, Director of Operations & Maintenance COMMITTEE MEMBERS ABSENT: Lorenzo Tyner, Director of Finance & Lucille Kring, Director Administrative Services Kelly Lore, Clerk of the Board Jennifer Cabral Norbert Gaia Al Garcia Rebecca Long Kelly Newell OTHERS PRESENT: Brad Hogin, General Counsel Eric Sapirstein, ENS (via Teleconference) Ian Delzer, Townsend Public Affairs Heather Stratman, Townsend Public Affairs 05/11/2015 Legislative and Public Affairs Committee Minutes Page 1 of PUBLIC COMMENTS: None. REPORTS: General Manager, Jim Herberg, reported on the recent California Water Environment Association Conference in San Diego which the District actively participated in. Mr. Herberg stated that the District presented at the Opening General session, along with SAWPA, Silicon Valley Water Project and the City of San Diego based on the concept of water recovery/recycling. He also stated that OCSD won the large plant safety award at the conference. Chair Beamish reported that he was in Portland, OR recently where he even heard complaints on their drought. CONSENT ITEMS: 1. MOVED, SECONDED and DULY CARRIED TO: Approve minutes for the Committee meeting held on April 13, 2015. AYES: Beamish; Diep; Kiley, Sebourn and Withers NOES: None ABSTENTIONS: None ABSENT: Kring and Nielsen INFORMATIONAL ITEMS: 2. Public Affairs Update Principal Public Affairs Specialist, Jennifer Cabral provided an update on recent public affairs activities including: micromania handout; children's water festival; 11 groups for plant tours in April; Legislative tours with Congressman Alan Lowenthal and Senator Barbara Boxer's offices; Community outreach efforts; volunteers as judges at the OC Engineering & Science Fair; OC Public Works Day on May 16; Korean Festival on May 16; upcoming Career days; Sustain-A-Palooza Event; Inside the Outdoors with OCSD; speaking engagements; Public Works Week May 17; Honor Walk update; Save the Date Expansion Ceremony for GWRS at OCWD and construction outreach efforts. 05/11/2015 Legislative and Public Attains Committee Minutes Page 2of4 Director Rob Thompson also provided a short update on the Newport Force Main construction project. Vice-Chair Nielsen arrived at 8:10 p.m. 3. Legislative Updates Public Affairs Specialist, Rebecca Long introduced Eric Sapirstein, ENS Resources, who provided an update on the pending request submitted to the U.S. Bureau of Reclamation for WaterSmart program assistance. The District has received a joint letter of support from the Orange County house delegation, and are awaiting a response back regarding additional letters of support from Senator Feinstein and Senator Boxer. Mr. Sapirstein stated that in regards to the 2016 FY budget, the Energy and Waters Development Appropriation bill includes language in the report that directs the U.S. Bureau of Reclamation to redouble its efforts in water recycling, noting the huge benefits and encourages them to submit to Congress projects that reaffirms funding WaterSmart projects. Mr. Sapirstein further reported on: Water funding projects; tax reform; tax exempt bond financing; Waters of the U.S. Rulemaking; Regulatory Integrity Protection Act (RIP); personnel changes in Senator Feinstein's office; water supply and drought relief legislation; possible loan and grant assistance for water recycling projects; and the recent ACWA meeting. Ms. Long updated the Committee on: AB 327 (Gordon) Public Works Volunteers, AB 1387 (Chu) Change Orders; SB 355 (Lara) San Gabriel and Lower LA Rivers and Mountains Conservancy; and Proposition 84. Ms. Long provided a Grant funding tracker to the Committee and explained the grants applied for and the benefited projects. She also distributed a Legislative Priorities Key Message Card. She thanked Director Kiley for representing the District at the recent dignitary tours; noted the upcoming tours and provided clarification on SB 119 (Hill). Chair Beamish requested that staff organize a joint policy committee meeting with SAWPA. Director Diep departed the meeting at 8:30 a.m. Heather Stratman, Townsend Associates reported on the following: legislative deadlines; Governor's budget update, which is expected to have nearly $1 billion in additional funding with the excess going towards education and possibly some remaining funds to Cap-and-Trade Program; Governor's drought focus; grant funding, including Proposition 84 IRWM 05/11/2015 Legislative and Public Attains Committee Minutes Page 3of4 program and Proposition 1 Water Recycling program; SB 355 (Lara) update; and possible funding for a study of available alternate water sources. Director Withers departed the meeting at 8:37 p.m. NON-CONSENT ITEMS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Chair Beamish declared the meeting adjourned at 8:45 a.m. to the next Legislative and Public Affairs Committee Meeting, June 8, 2015 at 8:00 a.m. Submitted by: Kelly A. Lore Clerk of the Board 05/11/2015 Legislative and Public Affairs Committee Minutes Page 4 of ITEM NO. 18 MINUTES OF THE MEETING OF THE AUDIT AD HOC COMMITTEE Orange County Sanitation District Wednesday, April 22, 2015, at 4:30 P.M. A special meeting of the Audit Ad Hoc Committee of the Orange County Sanitation District was called to order by Chair Beamish on April 22, 2015, at 4:30 p.m., in the Sanitation District's Administration Building. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Tom Beamish, Board Chair Lorenzo Tyner, Director of Finance John Nielsen, Board Vice-Chair &Administrative Services Richard Murphy Kelly Lore, Clerk of the Board John Withers Mike White Angela Brandt COMMITTEE MEMBERS ABSENT: None. OTHERS PRESENT: Bill Morgan, White Nielsen Diehl Evans Cassie Radermacher, White Nielsen Diehl Evans PUBLIC COMMENTS: None. NON-CONSENT CALENDAR: 1. Review Draft of the Capital Facilities Capacity Charges Audit. The committee was provided a draft copy of the Independent Accountants' report on Applied Agreed-Upon Procedures, which was reviewed in detail. The committee requested further data, will complete a final audit and will present their findings to the Administration Committee at an upcoming meeting. ADJOURNMENT: Chair Beamish declared the meeting adjourned at 4:59 p.m. Submitted by: Kelly A. Lore Clerk of the Board 04/22/2015 Audit Ad Hoc Committee Minutes Page 1 of 1 ITEM NO. 19 MINUTES OF MEETING GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE ORANGE COUNTY WATER DISTRICT& ORANGE COUNTY SANITATION DISTRICT January 12, 2015 @ 5:00 p.m. Chairman Yoh called the Groundwater Replenishment System Steering Committee meeting to order in the Boardroom at the District office. Following the Pledge of Allegiance to the Flag, the Secretary called the roll and reported a quorum as follows. 2015 Committee Members Roger Yoh OCWD Director(No. 1) Philip Anthony OCWD Director(No. 2) Cathy Green OCWD Director(No. 3) Tom Beamish OCSD Director (No. 1) Jim Ferryman OCSD Director (No. 2) (arrived at 5:05 p.m.) John Nielsen OCSD Director (No. 3) Alternates Denis Bilodeau OCWD Director(No.1) (arrived at 5:27 p.m.) Jan Flory OCWD Director(No. 2) (not present) Dina Nguyen OCWD Director(No. 3) (not present) Lucille Kring OCSD Director (No. 1) (arrived at 5:20 p.m.) Greg Sebourn OCSD Director (No. 2) Steve Jones OCSD Director (No. 3) (arrived at 5:10 p.m.) Others Mike Markus, OCWD Jim Herberg, OCSD Mehul Patel, OCWD Kathy Millea OCSD Bill Hunt, OCWD Cindy Murra, OCSD Judy-Rae Karlsen, OCWD Rich Ten Bosch, James Clark- Black &Veatch John Kennedy, OCWD Luke Wendel - Parsons Bill Dunivin, OCWD Curt Horner, Damon Yates- McCarthy Building Co. Gina Ayala, OCWD Debra Burris - DDB Engineering Sandy Scott-Roberts, OCWD • Annual Reorganization of GWRS Steering Committee Officers Chairman Yoh reported the Committee reorganizes on an annual basis. It was a consensus of the Committee members present to approve OCSD Director Tom Beamish as Chairman and OCWD Director Roger Yoh as Vice Chairman of the 2015 GWRS Steering Committee. Chairman Beamish then announced the new Alternate Directors: • Lucille Kring -OCSD Alternate No. 1 • Dina Nguyen - OCWD Alternate No. 3 CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Green, seconded by Director Nielsen and carried [6-01 as follows. (Yes-Beamish, Yoh, Anthony, Green, Nielson, Seboum/No-01 1. Minutes of Previous Meeting The Minutes of the GWRS Steering Committee meeting held October 13, 2014 are approved as presented. 1/12/2015 INFORMATIONAL ITEMS OCSD Director Ferryman arrived at 5:05 p.m. and OCSD Director Jones arrived at 5:10 p.m. during the following discussion. 2. GWRS Initial Expansion Construction Update GWRS Project Manager Mehul Patel reported the GWRS construction contract was awarded to McCarthy Building Companies, Inc. on October 20, 2011 with a construction completion date of October 18, 2014. He noted that due to authorized time extensions, the completion date has been extended to April 24, 2015 and the contractor is focusing on the completion of construction in the lime area and beginning start-up of the microfiltration (MF), reverse osmosis (RO), and Flow Equalization process areas. Mr. Patel indicated the final completion of the project would not likely occur until the end of June 2015 with substantial completion by the end of April. He advised the Construction Management Monthly Progress Report for November 2014 compiled by Parsons and the Change Order Reports are in today's packet. 3. GWRS Operations Update Director of Operations Bill Dunivin reported OCWD and OCSD staff continue to work together to develop a strategy to bring more water into OCSD's Plant 1 for the pending commissioning and startup of the GWRS Initial Expansion Project. He advised the GWRS plant is currently behind on production rates however OCSD will start increasing flow into Plant 1 during January 2015 in an effort to stabilize the treatment process prior to commissioning the new MF and RO process. OCSD Director Lucille Kring arrived at 5:20 p.m. and OCWD Director Bilodeau arrived at 5:27 p.m. during the following discussion. 4. Update on OCWD P1-101 Sludge Dewatering and Odor Control Pro act OCSD Planning Manager Kathy Millea presented an update on the OCSD P1-101 Sludge Dewalering and Odor Control Project that commenced construction in January 2013. She reported the project is no longer expected to have an impact on the amount of flow available to the GWRS Initial Expansion project. However, OCSD has observed a significant decrease in sewer flows to both OCSD plants that will limit flow availability to the GWRS Initial Expansion project. 5. Quarterly Outreach Report rOclober— Decemberl Principal Communications Specialist Gina Ayala reported on OCWD outreach projects and advised the Committee that the focus of public outreach is to build and maintain support for the project as well as encourage media interest and increase media coverage. She briefly reviewed the hallway project, Speaker's Bureau, tours, media coverage, and the new OCWD website. Ms. Ayala stated the detailed report is in today's packet. Ms. Ayala responded to questions and reported on the demographics for visitors and the upcoming dedication of the GWRS Initial Expansion project. DIRECTORS'ANNOUNCEMENTS/REPORTS Chairman Beamish reported the following schedule for 2015 GWRS Steering Committee meetings: • Monday, April 13, 2015 @ 5:00 p.m. • Monday, July 13, 2015 @ 5:00 p.m. • Monday, October 12, 2015 @ 5:00 p.m. - 2 - 111 212 01 5 ADJOURNMENT There being no further business, the meeting was adjourned at 5:55 p.m. Tom Beamish, Chair - 3 - BOARD OF DIRECTORS Needng Date I TOBd.Of Dir. os/n/is AGENDA REPORT em Number Item Number zo Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: OCSD MEDICAL INSURANCE REOPENER GENERAL MANAGER'S RECOMMENDATION A. Ratify the use of General Manager's Purchasing Authority, Ordinance OCSD-44, Article 2, Section 2.03E (Critical Time-Sensitive Procurement) authorizing the General Manager sign a memorandum of understanding (contract) with the California State Association of Counties — Excess Insurance Authority (CSAC- EIA)for medical insurance, effective July 1, 2015; and B. Adopt Resolution No. OCSD 15-11, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Medical Insurance Changes Identified Through the 2015 Medical Reopener Negotiations." SUMMARY On February 26, 2015, OCSD began a medical reopener with representatives of each exclusively recognized employee organization and each of OCSD's unrepresented employee groups. The purpose of the reopener was to explore the possibility of joining an insurance risk sharing pool, consider potential changes to OCSD's insurance carriers, and explore plan design changes to mitigate excise taxation in 2018. Throughout the reopener, all stakeholders demonstrated an awareness of the rising costs of healthcare and the potential for excise taxation in 2018, and showed an openness toward making changes to control costs and improve OCSD's healthcare options. The stakeholder groups worked collaboratively with OCSD throughout the course of the discussions to evaluate various options. After eight (8) meetings, the representatives developed a consensus on items to present to their membership, and each of the bargaining units held voting sessions for members to evaluate the potential options. The voting sessions yielded one (1) mutually agreed upon change, which was to join an insurance risk sharing pool under California State Association of Counties — Excess Insurance Authority (CSAC-EIA). This change will yield $980K in annual cost savings. The District will save approximately $794K annually, and employees will save approximately $186K annually. Final insurance renewal costs and purchase order approval are brought to the Board annually in June. Page 1 of 3 PRIOR COMMITTEE/BOARD ACTIONS April 22, 2015 — The Board of Directors authorized the General Manager to negotiate with the represented employee groups to discuss changes to District medical plans per the agreed upon medical reopener. ADDITIONAL INFORMATION OCSD's total insurance premium for the 2014-2015 plan year was $9.49M. The initial renewal quotes provided by OCSD's current carriers for the 2015-2016 plan year constituted a 19.7% or$1.87M increase, for a total of$11.35M. OCSD and its insurance broker, Alliant Employee Benefits, work collaboratively each year to control costs and minimize renewal increases, and are typically successful in reducing the renewal quotes to a lower percentage. For the 2015-2016 plan year, the negotiated rates reduced OCSD's renewals to a 12.9% or $1.22M increase, for a total annual premium of $10.71 M. During the course of the reopener, the group considered a number of potential changes to OCSD's medical insurance offerings to further reduce OCSD's healthcare costs. Key items of discussion included the option of joining a pooled environment, considering possible carrier changes, providing additional plan choices, and considering possible plan design changes to reduce and/or more precisely distribute insurance premiums. Each of the bargaining units conducted voting sessions for their members to evaluate potential changes identified in the reopener. The specific change approved by the bargaining units was to join an insurance risk sharing pool under California State Association of Counties— Excess Insurance Authority (CSAC-EIA). Joining CSAC-EIA for OCSD's Anthem Blue Cross HMO and PPO plans will reduce OCSD's total premium for the 2015-2016 plan year by $331 K to $10.37M, compared to contracting directly with Anthem Blue Cross. Additionally, these rates will remain in place for 18 months without an increase, compared to 12 months under Anthem direct. After the initial 18 months, annual renewals will be based on the CSAC-EIA combined risk pool of 18,000 employees, making the rates much less volatile. CSAC-EIA's annual renewals have trended below OCSD's HMO and PPO renewals, as well as the California trend for PPO plans. In addition to the benefits listed above, this change will help to mitigate OCSD's exposure to the Affordable Care Act (ACA) excise tax in 2018. By joining a risk sharing pool, OCSD's medical insurance plans will be subject to the higher of the two excise tax thresholds (i.e., the threshold otherwise reserved for family plans). Additionally, the reduction in premiums from joining CSAC-EIA will further mitigate excise tax exposure. CEQA N/A Page 2 of 3 BUDGET /PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT The following attachment(s) are included in hard copy and may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • OCSD Medical Reopener Overview Table • Resolution OCSD 15-11 Page 3 of 3 MD Medical Reopener Overview Cost Scenario Total Premium $Over Current %Over Current Premium Premium Current Premium $ 9,500,000 $ - - Initial Renewal Quotes $ 11,400,000 $ 1,900,000 19.7% Negotiated Renewals $ 10,700,000 $ 1,200,000 12.9% CSAC-EIA $ 10,400,000 $ 890,000 9.4% Savings Scenario Savings from Initial Renewal Negotiated Renewals $ 650,000 CSAC-EIA $ 1,000,000 Note:All dollar values rounded for simplicity of discussion RESOLUTION NO. OCSD 15-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING MEDICAL INSURANCE CHANGES IDENTIFIED THROUGH THE 2015 MEDICAL REOPENER NEGOTIATIONS. WHEREAS, on April 22, 2015, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to negotiate with the represented employee organizations to discuss changes to District medical plans per the agreed upon medical reopener. WHEREAS, pursuant to Government Code Section 3500, et seq., representatives of the represented employee groups have met and conferred, in good faith, with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, during commencement of negotiations the parties agreed that any changes would take effect on July 1, 2015; and WHEREAS, the parties have modified the District's medical insurance plan offerings to reflect the parties' understanding regarding certain terms and conditions as set forth in the OCSD Medical Insurance Reopener agenda report, which include: • CSAC-EIA — Moving to the California State Association of Counties — Excess Insurance Authority (CSAC-EIA), which is a member-directed risk sharing pool of counties and public entities providing risk coverage programs and risk management services, to reduce OCSD's annual health insurance premiums. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned medical insurance change as outlined herein is hereby approved. Section 2. The General Manager is authorized to sign a memorandum of understanding (contract)with CSAC-EIA for the approved change. OCSD 15-11-1 PASSED AND ADOPTED at a regular meeting of the Board of Directors held May 27, 2015. Tom Beamish, Board Chair ATTEST: Kelly A. Lore, Clerk of the Board OCSD 15-11-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 15-11 was passed and adopted at a regular meeting of said Board on the 27'h day of May 2015, 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 this 271h day of May 2015. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 15-11-3 BOARD OF DIRECTORS Meeting Date I Toed.Of Dlr. os/n/is AGENDA REPORT em Number Item Number u Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED REVISIONS TO FY 2015-16 BUDGET GENERAL MANAGER'S RECOMMENDATION A. Approve the following proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2015-16: 1) Reduce the approved future Single Family Residential (SFR)* and Multi-Family (MFR) rate increases as follows: SFR MFR SFR MFR Approved Approved Proposed Proposed July 1, 2015 $323.00 $226.10 $322.00 $225.40 July 1, 2016 $331.00 $231.70 $327.00 $228.90 July 1, 2017 $339.00 $237.30 $331.00 $231.70 She SFR is the underlying rate for the District's primary rate structure and as such other components of the rate structure will be adjusted similarly. 2) Include a payment of $50 million to the Orange County Retirement System (OCERS) to be credited against the District's Unfunded Actuarial Accrued Liability (UAAL). 3) Approve the FY 2015-16 Operating Budget of $149.3 million, a decrease of $5.7 million (3.7%). 4) Approve the FY 2015-16 Capital Improvement Program (CIP) total outlay budget of$181.0 million, an increase of$1.6 million (0.9%), bringing the total CIP budget to $2.4 billion consisting of 126 projects. Page 1 of 3 5) Approve the 2015-16 Outlays as follows: Originally Proposed Adopted Budget Budget Revision Category FY 201&16 FY 201&16 Operations and Maintenance 155,004,500 149,306,940 Capital Improvement Program 180,338,000 181,912,000 Less CIP Savings and Deferrals - (6,891,000) Rehab, Replacement, Refurbishment 25,749,000 - Debt Service 86,714,000 91,777,000 Reduction of Long-term Liabilities - 50,000,000 Re-Purchase of Excess Capacity 1,115,000 1,000,000 General Liability&Property Insurance 1,611,200 1,657,700 Workers' Compensation Insurance 790,000 955,000 Total 451.321.700 469.717.640 B. Adopt Resolution No. OCSD 15-12 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Directing the County Tax Collector to include Sanitary Sewer Service Charges on Fiscal Years 2015-16 through 2017-18 property tax bills and Repealing Resolution No. OCSD 13-05:' SUMMARY Developing a two-year budget increases efficiencies and provides a longer planning horizon. This update represents known revisions to the second year of the two-year budget. Summaries of these revisions are included in this document. Over the previous few years, the District has implemented several efficiencies that have increased its financial position (refinancing outstanding debt, reducing long-term liabilities through advanced payments, reducing operating expenditures, and revisions to the Capital Improvement Program). As a result, the staff is recommending a reduction to the approved rate increases for the next three fiscal years, a reduction in the rate increases of 2.5 percent at the end of the third year. Additionally, staff is recommending a further reduction in its Unfunded Actuarial Accrued Liability (UAAL). The additional payment proposed in the budget revisions will yield nearly $2 million per in annual savings and reduce the payoff period from 20 years to approximately 10 years. The FY 2015-16 Proposed Revised Budget is being presented for the Board's consideration. The Proposed Revised Budget was presented to the Operations and Administration Committee at their regular May meeting as an information item, allowing each Committee an opportunity to review the proposal prior to the May Board meeting. Staff is recommending that the Board of Directors approve this budget. Page 2 of 3 PRIOR COMMITTEE/BOARD ACTIONS May 2015 — The FY 2015-16 Proposed Revised Budget was presented to the Operations Committee Meeting and Administration Committee Meeting as an information item. June 2014 — The Board approved the FY 2014-15 and FY 2015-16 Two-Year Budget for the period July 1, 2014 through June 30, 2016. ADDITIONAL INFORMATION None. ATTACHMENTS The following attachment(s) are provided in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: 2015-16 Budget Update Summary 2015-16 Budget Update Development— Expense Summary 2015-16 Budget Update— Proposed CIP Project Listing Resolution No. OCSD 15-12 JH:LT:MW:te Page 3 of 3 2015-16 Budget Update Summary Originally Proposed Adopted Budget Budget Revisions FY 2015-16 FY 2015.16 Beginning Accumulated Funds $599,841,230 $626,917,530 Revenues: General User Fees 296,252,000 $294,182,000 Permitted User Fees 13,988,000 13,555,000 - Assessments 16,168,950 16,433,570 Property Taxes 81,620,000 88,527,000 Interest Revenue 14,657,000 6,064,000 Capital Facility Capacity Charges 11,877,000 11,000,000 Other 4,317,900 5,058,700 Total Revenues 438,880,850 434,820,270 Outlays: Operations& Malntenace 155,004,500 149,306,940 Capital Improvement Program (CIP) 180,338,000 181,912,000 Less:CIP Savings and Deferrals - (6,891,000) Rehabilitation, Replacement, &Refurbishment 25,749,000 - Debt Service 86,714,000 91,777,000 Reduction of Long-Term Liabilities - 50,000,000 Re-Purchase of Excess Capacity 1,115,000 1,000,000 General Liability and Property Insurance 1,611,200 1,657,700 Workers'Compensation Insurance 790,000 955,000 Total Outlays 451,321,700 469,717,640 Ending Accumulated Funds $587,400,380 $592,020,160 2015-16 Budget Update Development-Expense Summary 2015.16 2015.16 Proposed Increase/ Percent Description Adopted Revision (Decrease) Change 1 Salaries &Wages $ 64.2 $ 66.3 $2.1 3% 2 Benefits $ 36.4 $ 28.5 ($7.9) - 22% 3 Operating Materials & Supplies $ 16.3 $ 17.2 $0.9 6% 4 Contractual Services $ 24.5 $ 23.9 ($0.6) -2% 5 Repairs& Maintenance $ 12.9 $ 12.3 ($0.6) - 5% 6 Utilities $ 7.8 $ 7.8 $0.0 0% 7 Professional Services $ 3.1 $ 3.5 $0.4 13% 8 Other Operating Supplies $ 2.7 $ 2.7 $0.0 0°% 9 Administrative Expenses $ 1.6 $ 1.6 $0.0 0% 10 Research & Monitoring $ 0.8 $ 0.8 $0.0 0% 11 Other Non-Operating Expenses $ 0.1 $ 0.1 $0.0 N/A 12 Training & Meetings $ 1.0 $ 1.1 $0.1 10% 13 Printing & Publication $ 0.4 $ 0.4 $0.0 0% 14 Cost Allocation ($ 16.8) ($ 16.9) ($0.1) 1% 15 Net Operating Requirements $155.0 $149.3 ($5.7) - 49/6 Proposed Adjustments to the Approved 2015-16 Operating Budget 1) Salaries/Wages: $65.2M to$66.3M $2.1 Million Increase (3%) 2) Benefits: $36.4M to$28.5M $7.9 Million Decrease(-22%) - Decrease a result of the$125 M pay down against the Orange County Employees'Retirement System Unfunded Actuarial Accrued Liability of$200 M. 3) Materials/Supplies: $16.3M to$17.2M $0.9 Million Increase (6%) 4) Contractual Services: $24.5M to$23.9M $0.6 Million Decrease (-2%) 5) Repairs& Maintenance: $12.9M to$12.3M $0.6 Million Decrease(-5%) 6) Utilities: $7.8M to$7.8M No Change from Adopted 7) Professional Services: $3.1M to$3.SM $0.4 Million Increase (13%) 8) Operating Supplies: $2.7M to$2.7M No Change from Adopted 9) Administrative Expenses: $1.6M to$1.6M No Change from Adopted 10)Research & Monitoring: $O.BM to$0.8M No Change from Adopted 11)Other Non-Operating: $O.1M to$O.1M No Change from Adopted 12)Training& Meetings: $S.OM to$1.1M $0.1 Million Increase (10%) 13)Printing& Publication: $0.4M to$0.4M No Change from Adopted 14)Cost Allocation: ($16.8M)to ($16.9M) $41 million increase (1%) 15)Net Operating Budget $155.OM to$149.3M $5.7 Million Decrease (-4%) The Proposed Operating Budget decreases by$5.7 million or 4% from originally approved Summary of Capital Improvement Project Requirements Qigmal Revised oigvul Trial Trial 201516 P,*" Protect Protect C iihBow Protect Tbmber Budget Badger Budget S Collections FwAdmas Rai&Brad Street Sewer adensian 1-101 S 10,722,000 S 5,319,oW Fulve Santa Me Trunk Severer Rehab 1-12 I676,000 7,626000 89&123 100,918 Cordlnuing Edinger Boise China Trunk Imps. 1125 6,0301000 5.1591000 Firm. Edinger Pumping Station Upgrade&Rehab 1133 13,629,000 8,aul F. Slater Avenue Pomp Station Rehab 1134 13,701.000 9.729,000 FuWe SARI Re-Algnment 241 1114040W 11,401,000 488.924 538,848 Cordmiing SARI Rook Stedltrare Removal 241-8 3,092,000 3,092,000 140,143 98,323 Continuing Tett Branch Imp, 249 3,143,000 1,938,OW Future Neybope-PMcentia Think Grade Separal Rep, 2-65 5,966.000 5.956000 470.076 653,226 Continuing Newfiope-Placeada Think Rep. 2-72 104,Bg1 104,890,000 2,140,3n 6,339,297 Cash., Vorm Linda Pump Station Abandonment 2-73 6,fi94WO 4,1530W F. Coyote Hills Golf Course Odor Control Station 2-74 8,365,000 Canceled Lakeview Grade Separation Project 2-76 330,000 3W,000 4.021 15.836 Cordlnuing Tustin Rose OCTA Grade Sepaation 2-36 5861000 566000 9,252 109,420 Codhhling OrangeNorpe OCTA Grad.S"antlon 2-12 3,WO,WO Competed Rehab of Magnolia Think Sewer 358 19,812,000 Competed Milkktolcer Trunk Sayer Relief 3-59 17,324,000 Unrelled Beach Thinki Interceptor Severer Relief 360 27,599,000 118,670,000 448,420 F. Seal Beach Pump Station Rehab 362 62,041,000 62.041,ODD 227,215 1,278,051 Continuing Rehab of Weslem Regional Sewers 354 112222,000 112,2220W 440.644 542,71 Cordlmiing Rehab of Balboa Think Sewer 547 8,122,000 Competed Bier Point Force Mein Rehab 550 45,619,000 Uri Nei Force Main Rehab 560 52,216,OW 6&OB],000 19,592,241 17,990,289 Revised Dover Dine Trunk Smear Relief 553 14.327.000 14,327000 141.812 716,918 Cordlmiing Crydlal Cove Pumping Station Upgrade&Rehab 586 2,812,000 10,614,000 Firm. Bay Bridge Pump Station Rerunstmckon 502 74A31,000 51,010,000 634,041 F. District O Think Seyer Relief 6-17 I,W2,000 7,I95,000 4,546,145 4,049,927 Revised Souguest Costa Mesa Think Severer 6-19 14.993.000 14,993000 1,133.4W 479,304 Cordlmiing Gisler-Red Hill Think Imps.-ReachB 232 23,013,OW 20,143,000 5,811,623 9202,269 Revised Browning Subtrunk Sneer Relief 740 13,439,000 16.952,COD 8I,303 Fulve Van handed Trunk Sayer Relief 1E2 433.000 Gwllsd MacArthur Pump Sound Rehab 7E3 T"bOOO 8.262,000 631082 Firm. Man$I l Pump Station Rehab 744 0,242,000 37,892,000 F. Master Facllitles Engineering Pmgds-Cogedlons MFEt W 12,192,000 12,192,COD 2,255,285 754,631 Revised Bay Brilge Pumpsbtion&Force Mains Rehab Study SP 178 400,000 726000 489,725 Revised Coliseum System Master Planning SIP-080 1,WO1000 Competed Collection System Odor Control Systems Study SP 189 200,WO Cancelled Culbdions Facili ies Trust Budget 761,M,000 923,450,000 4Q033.680 43.BO,303 Summary of Capital Improvement Project Requirements Qigmal Revised t]rigvm] Total Total 201516 P,*" Project Project Caiurd w Project Nanber Budget Budget Budges 8 Fkadxvrks Headworks Rehab B Expansion at Pl P1-105 16.416,000 231 1,641,471 5,907,19 Revised Headsoope Expansion Pi-120 22280g000 Canceled Trunk line Clor Contra!Imp, P1-123 10.026,000 11,170,000 6,520,128 5,401,072 Revised Haademals at P2 P2.66 258,I24,000 Competed Ikadrwr6 Total S6A,MCOW 246,443,000 81 113081 6rfommdon Aknagencnt Systems Process SCAOA Repl. J-120 24,663,000 24,663,000 Fulure Programmable Cmmml Panel Upgrades J-125 3,4n,OW 3,1T],000 1,218,526 1,635,571 Revised SCAOA System S Network Upgrades P2-107 27,839,000 27,839,000 159718 390,034 Continuing Strategic Impartation Anchdec]ure SM3 1,995000 2,800,000 491,921 Revised IntameNntranet Oevebpmant SP419 650,000 650,000 114,NO 147,884 Continuing EAM Software B Process lmplemenlalion SP-100 6.500,000 7,500,000 1,033,263 991 Revised P0820 Sotlwere Real. SP-103 525,000 525,000 134,187 19,309 Continuing Software B Canpmer Equipment Rep.Purled SP-135 Soyi 6.516,000 112635 049,814 Raised Land Rei hill System Project SP-136 6000o0 90,049 Revived Geographic lnfamation System SP-15 4,047,000 4,460,000 499,612 WON Passed Proteins SCAGA Link m Pump Sta6aos SP-152 271,000 5,240 Canceled Comaunication Fagg System Rep. SP-165 753,000 119,532 Continuing Information Technoiagy,Master Plan SP-192 WOOD 267,958 Canceled Information Technoiagy,Equipment Lippman SPd9 4,140,000 4,140,000 603,155 439,179 Continuing Infmaatioa Nim,erceut Systems Tom] 79MOco 83,7041 4,869,029 5,963,360 Ocean Cutfig S3sle. Final EM1luent Saapler B Balding Area UWmdes J-110 14,064,000 16,973,000 7,814652 8.399,791 Continuing Oldfall Land Section 800BS Piping Rehab J-112 20,466,000 79206 Completed 66inch lmarplant Effluent Pipeline Rehab J-116 12159,000 Canceled Ocean Oullall System Rehab J-117 45194,COD 16,000000 1,610,909 3.546,419 Revised On.Once Systare'Iurn[ 155,M1,000 911923,000 10338,OP1 11,94 210 PtimeryTreatiment Joint GWRS Worthington Backwash Redirection Jd l 381,000 Competed Primary Snubber Rehab Patel at PI Pt-114 50,708,000 94,220000 Future Primary Effluent Pipeline Joint Repairs P1-118 3,246,000 17,752 Canceled P1 Primary Treatment Upgrades Pt-124 11,635,000 10,317000 5,058356 4,535,914 RevlceG Primary GmiBets Rapid B Impr at P1 Pt-126 122,649,000 New P2 primary Treatment System Rehab P2-90 43,210,000 156,029,000 269,303 257,678 Roland Primary Treatment Area Rehab SMdy SP-137 WOOD 1.000,000 120,117 Revised Prim'Tritemeat Total 109 MOOO 384,223,000 5,143,410 4,932369 Process Related Special Projects Fell Protestant hand,at P18 P2 J-123 2,687,000 Cars" Safety Improvement at P18 P2 J-126 lJOSO0 51,5W New Summary of Capital Improvement Project Requirements O'lawl Revised Qiguul Tau[ Tom[ 201516 P,*" Proled Proled C iihllnw Prnlecl Honbar Budget Budi EodHet a. Odor Control Master Plan SP-166 1.600,000 1.900,000 177,524 4o3,121 Redsed Commoslon Mgml. SP-68-1 20,500,coo 24,518000 2,00842 1,431,191 Ranged Process Rebted S,cul Projects TOW 32,]8],000 28,126,000 2,185,956 pw,a54 Secondarydteatmeet New Secondary Treatment System at P1 P1-102 255,771,000 Cattail Activaled Sludge Aeration Basin Deck Re al P2 P2-118 6,679,000 174,861 Saw Oxygen Plant Demolition at P2 SPIN 4,051,000 4,051,000 1,230617 ZCNA73 Continuing PI Secondary Pit Most MgmL Plan SP-183 40DgOo 29.966 Cancelled P2 Secondary Oxygen Plant Mgml.Plan SP-195 40CgOD 308,433 Canceled Secondar,Taeament ToW 260,622,000 10,730,000 1,567,018 2,799,334 Solids Handling&Digestion Digester Rehabat Pl P1-IDO 60,547,000 MOOD coo 5,174,055 5.242,131 Continuing Sludge Cawatenng&Odor Control at Pl P1-101 171,91 171,976,000 DO 865,919 50.905,349 Continuing Digester Panic Chloride System Rehab P2-105 4,449,000 a449,000 amDol 54,634 Continuing P2 Solids Sterege fici P2-114 37.604,COD Canceled Solids Ncisming&Pmceseing Upgrades P2-99 4$3d6coo 51,1W,000 6,430821 4,644,432 Reviced P2 Dil Facilities Rehab P2-91.1 4I,600000 47,600,000 91.565 Future Sludge Oewatedng&Odor Control at P2 P&92 8I,000,000 B6,So,coo 9,625,o6 6,440,708 Reviced P2 Digesearm dlere Plant Asset MgmL Flan SP-186 8W,000 392,765 CompetM Solids Marathon,&[agestmn Tom[ 453,324,000 426,SN,0CW 61,884,212 6-/A72M Slmkgic'&A,Nr Hamming Master Planning Special Projects MSTUDIES 11,803,000 900,533 New Faollity-WMe Safety Assessment Si 9W,000 ComMrW Landscape&Security Master Plan SP-1454 WOOD 38,577 Cancelletl Climate Change Impact Study SP-152 to,00a 40Cg0a lo,WO Future Stemmvater Master Plan SP-167 WOOD TWgOD 222,W2 131,110 Rsi Treatment Plant Hydraulic Assessment SP-166 Dogma 131,274 Canceled Settlement&Liquefaction Study SPAR 7W,000 TOO WO Cancelletl Asset MgmL Si 4,80,00 54,649 Como d Suatrgk&M16stae Pluming Total 7700,030 12,900.000 1,2 6,m 1,039,643 Support Pastures Consensus Center EntrammuMuilding Permits J-122 2,640,000 893,484 Canceled Master Facilities Engineering Projects-Plant M-FE-%ant 35,228,000 4,325000 10896.4% SOW,745 Re+ised Master Small Capital Repl.IRehab MSMG P-NR 18,295,000 15,622,000 5,5%H8 2,800,792 Reviced Title 24 Access Compliance&BuiMing Rehab Project Pi-115 17,437,000 17,161,000 515M705 5.196,624 Revlced SOON PenmeNr Secunty&Stoml Water lmpr at Pl P1-125 3,Oo,0o 5,2TI,Oo 434,361 675,161 Rrviwd Sue&Senuriq lmpr.at P2 P2-W 1,455,000 252,000 690,993 Continuing Public Address System Study SP-180 10DOOo Cancelletl Tunnels Systems Asset MAml.Plan SP-191 20000a 81,158 Canceled P2 AEministri Bustling Master Plan SP-193 WOOD 75.802 Cancelletl Summary of Capital Improvement Project Requirements 0,imit Ra.;aea oiguml Tout Tout 201516 P,*" P'. Frolenl Ceshllow Fmlem Tlunber Budget Budget Budges S Adminiebave FadlNes Implementation Planning SP-194 80)(D000 80DA00 5,083 Continuing Ongoing Small Capital Repl.Rlehab SP44 2$O6a,coo 21,672,000 2,209,911 966,303 Revised SuPpon Pucitilies Total 101,556,000 104,109,OW 26,416,851 14.691,90t UAIYSysfems Cengan Cooling Water System Real.Pi J-109 11,333,000 11,333,000 W 69 Continuing Cengan Emissions CorNol Prot J-111 24,950,000 24.950,000 10736,677 7,209,612 Continuing UPS Syalam Upgratlas J-121 318171000 1,Bi 76,622 Future Digester Gas Facilities Rehab J-124 58,755000 BOOM 000 Future Natural Gas Pipelines Real.at Pt&P2 J-127 1,310,000 39,509 New Power Monitoring&Carol Systems AM 10,918000 9488 Completed Electrical Power Distribution System lmp. AS 12,791,000 35,081,coo Future Plant Water System Rehab at Pt Pt-112 810W,OW 810W,OW Dual 1,112,536 Continuing Central Genemtan Rehab at Pt Pt-127 35.647,OOD Nan Plant Water Syesin Rehab at P2 Pi 5,070,000 5,070,000 634,510 870,583 Continuing Bdler System Rehab&Scmbbers H&I Demolition at P2 P2-106 3.095,000 3.095,000 342592 333,046 Continuing Conmlldaled Demaktan&Utlllty imp.M P2 PDIIO t3,974,000 tD,981,0oo 1,101 1,990,801 Continuing SCE Feed Reliability Imp, P2-111 22,,pp 000 Cancelletl Secondary Area Cable Tray Upgrades P2-116 2,154,000 Cancelled Haedwnds Cable Tray Upgrades P2-111 31015,000 11,832 Cancelletl Central Genemtan Rehab at P2 P2-119 41,909,000 New D'gaster Gas PeCIIIti65 Study for P1&P2 SP-141 750,000 Competed Why Water Systems Study SP-14 BW,000 Canceled Plant Mir System Master Ran SP-I" adDOOo W,OIlo 162,627 120,681 Continuing Electrical System Base Map SP-149 250000 Cancelletl Solent Pumpaing System&Water Characterization Study SP-19 25COOo 20WO Canceled uulry 3,amnm Toml 21Z7*000 30414841000 15,969,452 u717i Water Mana6emcnt Projects Effluent Reuse Study SP-173 2,80DpW 3,25DOW 622,MO 1,20O269 Revised wmcr tWnagcmcm Pojecb Total 2,800,000 3=00i QZDO 1,206,269 anem operational Research Phoi Line Item SP-125 1044QWo 10440000 1COg215 102,160 Continuing Capital Improvement Program Mgmt.Sawkes SP-195 ",OW ",OW 99999 183,501 Continuing 0them Total 10,740,000 10,740,000 1,104,214 285,667 Total Trenhrent and Dsposal Phi 3,000,553,pp I,M,26$pp 139,107,I00 135,01 16 Total Colkcdnns Fasililice 761,2 OOO M,450,00) 40,033,680 43,830,303 Capital Equipment Pnmbuses 16,000,000 13.329,000 1,196,60D 3,M,W Total Capital Imp—mend Pw,ww Boni SZM,759,M 52,444,01 $180,337,383 $181,912,479 RESOLUTION NO. OCSD 15-12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT DIRECTING THE COUNTY TAX COLLECTOR TO INCLUDE SANITARY SEWER SERVICE CHARGES ON FISCAL YEARS 2015-16 THROUGH 2017-18 PROPERTY TAX BILLS AND REPEALING RESOLUTION NO. OCSD 13-05 The Board of Directors of the Orange County Sanitation District does hereby find: A. By adoption of Ordinance No. OCSD-41, the Board of Directors elected to adopt, impose, and collect rates and charges for sanitary sewer services and facilities provided by the District and established procedures related thereto. The sanitary sewer service charges were set by Ordinance No OCSD-41. B. California Health & Safety Code Section 5473 provides that such charges, as adopted by District Ordinance, may be collected on the County tax roll in the same manner, by the same persons, and at the same time as, together with, and not separate from, its general taxes. C. As part of the budget preparation process, the District's Management has prepared financial and engineering reports, setting forth financial projections for providing the wastewater collection, treatment, and disposal services and facilities to the District's service areas for Fiscal Year 2015-16 through 2017-18. The charges established by Ordinance No. OCSD-41 reflect an allocation of the costs of operation and maintenance, such that the charges do not exceed the estimated reasonable costs to provide the wastewater collection, treatment, and disposal services and facilities, and the revenues received are not used for any other purpose. D. Pursuant to California Constitution Article XIIID (Proposition 218), as of July 1, 1997, sanitary sewer service charges may be deemed to be charges for property-related services. The sanitary sewer service charges set by Ordinance No. OCSD-41 comply with the provisions of Article XIIID, in that they do not exceed the cost to the District to provide the service and facilities. The charges are imposed exclusively to finance the capital costs, maintenance, and operating expenses of the District's sewer facilities. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: That the rates and charges set forth in Ordinance No. OCSD-41 are affirmed herein by the Board of Directors, as consistent with the findings OCSD 15-12-1 hereinabove stated, for Fiscal Years 2015-16 through 2017-18, in the following amounts: Annual Sanitary Sewer Service User Fees Residential Users FISCAL YEAR 2015-16 2016-17 2017-18 SFR $322.00 $327.00 $331.00 MFR $225.40 $228.90 $231.70 SFR = Single Family Residential MFR = Multi-Family Residential All properties located within Revenue Area 14 pay no annual service fees. District costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. Section 2: That pursuant to California Health & Safety Code Section 5473, the County Tax Collector is hereby ordered and directed to include sanitary sewer service charges, as adopted by Ordinance No. OCSD-41, in the same manner, by the same persons and at the same time as, together with, and not separately from, the general taxes; and that such sanitary sewer service charges be included in the annual property tax bills for Fiscal Years 2015-16 through 2017-18. Section 3: That pursuant to California Health & Safety Code Section 5473, this Resolution shall remain in full force and effect until amended or repealed, or until such time as the rates of sanitary sewer service charges, as established by Ordinance No. OCSD-41, are changed by increasing the annual rate. Section 4: That the General Manager, or his designee, be, and is hereby authorized and directed, to execute any necessary documents or agreements to effect the order set forth in Section 2 herein. Section 5: That Resolution No. OCSD 13-05 is hereby repealed. OCSD 15-12-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held May 27, 2015. Tom Beamish Chair, Orange County Sanitation District ATTEST: Kelly A. Lore Clerk of the Board OCSD 15-12-3 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 15-12 was passed and adopted at a regular meeting of said Board on the 271h day of May 2015, 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 this 271h day of May 2015. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 15-12-4 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency Glossary of Terms and Abbreviations SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos— The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) —A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Glossary of Terms and Abbreviations Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!f) — the dilution at which the majority of the people detect the odor becomes the DrT for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Glossary of Terms and Abbreviations Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.