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HomeMy WebLinkAbout05262010 Board Agenda Package AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ADMINISTRATIVE OFFICE REGULAR MEETING May 26, 2010 — 6:30 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE - (Charles Antos — Seal Beach) ROLL CALL PUBLIC COMMENTS REPORTS: The Chair, General Manager and General Counsel 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. 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). 2. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 04/15/10 04/30/10 Totals $16,737,865.80 $9,443,362.63 DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. 05/26/10 Page 2 CONSENT CALENDAR Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 3. Approve the minutes for the regular meeting held on April 28, 2010. 4. Approve an Out of Service Area Service Agreement with the Cities of La Habra and Whittier to accept sewage flow from 10905 Valley Home Avenue, Whittier, in a form approved by General Counsel. 5. Approve Amendment No. 2 to Cooperative Projects Grants Program Contract No. 0502 with the City of Newport Beach, providing for reallocation of grant funds to other tasks within said contract with no additional funding, in a form approved by General Counsel. 6. a) Approve an Agreement with Irvine Ranch Water District (IRWD) to transfer the Orange Park Acres area from the Consolidated Revenue Area to Revenue Area 14; and, b) Authorize a $274,681.24 credit to IRWD for past capacity and annexation fees collected by the Orange County Sanitation District in the area transferred to Revenue Area 14, in a form approved by General Counsel. 7. Approve Flow Accommodation Agreement with County Sanitation District No. 18 of Los Angeles County from June 8, 2010 to June 7, 2011, incorporating by reference the terms of an existing 50-year Agreement scheduled to expire, in a form approved by General Counsel. 8. Approve Flow Accommodation Agreement with County Sanitation District No. 19 of Los Angeles County from July 13, 2010 to July 12, 2011 , incorporating by reference the terms of an existing 50-year Agreement scheduled to expire, in a form approved by General Counsel. 9. Approve the District's policy on Continuing Compliance with Tax Law: Orange County Sanitation District Wastewater Revenue Obligations, Series 2010A (Federally Taxable Build America Bonds) STEERING COMMITTEE 10. Order Steering Committee Minutes for the regular meeting held on April 28, 2010 to be filed. 05/26/10 Page 3 11. Approve Santa Ana River Interceptor (SARI) Line Loan and Repayment Agreement No. D07-042 with the Orange County Flood Control District (OCFCD), providing for: a. A loan of up to 60% of the successful bid amount for improvements to the SARI Line not to exceed $72,000,000; b) No interest accruing until June 2018; c) 3% interest on any unpaid balance through July 2022 and the complete repayment by July 2022; and, d) Authorize the release of $36,000,000 to OCFCD immediately after the award of the contract, and to allow the remaining balance to be released 12 months later. OPERATIONS COMMITTEE 12. Approve the minutes of the May 5, 2010 Operations Committee meeting. 13. a) Approve Professional Services Agreements with Ninyo & Moore and Converse Consultants providing for on-call Materials Testing, Inspection, and Other Geotechnical Testing Services for Collection System and Treatment Plant Projects, PSA2010-001, for a three-year period with an amount not to exceed $300,000 for each agreement ($600,000 total); and, b) Approve a contingency for each agreement of $30,000 (10%). 14. a) Approve Professional Services Agreements with Stantec Consulting and Bush and Associates providing for on-call Surveying Services for Collections System and Treatment Plant Projects, PSA2010-002, for a three-year period with an amount not to exceed $200,000 for each agreement ($400,000 total); and, b) Approve a contingency for each agreement of $20,000 (10%). 15. a) Approve Professional Services Agreements with V&A Consulting Engineers, Inc. and CSI Services, Inc. providing for on-call Coatings Inspection, Corrosion Testing, and Confined-Space Entry Services for Collections System and Treatment Plant Projects, PSA2010-003, for a three-year period for each agreement for a total amount not to exceed $400,000 for each agreement, ($800,000 total); and, b) Approve a contingency for each agreement of $40,000 (10%) 05/26/10 Page 4 16. a) Approve request for transfer of $30,500 from the Generator Truck item to the Jet Rodder item as shown in the Proposed Capital Equipment Budget Detail on FY 2009-10 Budget Update Section A, page 20; and, b) Approve the purchase of one three-axle Combination Sewer Cleaning Truck with Positive Displacement Blower, for an amount not to exceed $414,400. 17. Approve Amendment No. 10 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH2M Hill, Inc., authorizing: a) Establish an amount not to exceed $13,770,000 for year nine (Fiscal Year 2010-11) of the ten-year contract; and, b) Increase the amount of the ten-year contract to a total amount not to exceed $122,724,978. ADMINISTRATION COMMITTEE 18. Approve minutes of the May 12, 2010, meeting of the Administration Committee. GWRS SYSTEM STEERING COMMITTEE 19. Receive and file minutes of the Joint Groundwater Replenishment System Steering Committee meeting held on April 12, 2010. NON-CONSENT CALENDAR 20. Ordinance No. OCSD-40, An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-36: a. Open public hearing 1. Receive and file written comments, if any 2. Verbal reports of staff 3. Directors' questions 4. Public comments 05/26/10 Page 5 b. Close public hearing c. Discussion by Board of Directors d. Recommended actions: 1. Motion to read Ordinance No. OCSD-40 by title only and waive reading of said entire ordinance. 2. Motion to adopt Ordinance No. OCSD-40, An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-36 CLOSED SESSION CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session, if necessary a) Convene in closed session. CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54954.5 (f)) 1. Agency Designated Representatives: James D. Ruth, General Manager; Robert Ghirelli, Assistant General Manager; Lorenzo Tyner, Director of Finance and Administrative Services; Jeff Reed, Human Resources and Employee Relations Manager; and Paul Loehr, Human Resources Supervisor. 05/26/10 Page 6 2. Employee Organizations: a) Orange County Employees Association representing employees in the Technical Services, Engineering, and Administrative and Clerical Units; b) International Union of Operating Engineers - Local 501 representing employees in the operations and maintenance unit; and c) Peace Officers Council of California representing employees in the Professional Group and Supervisor Group. b) Reconvene in regular session c) Consideration of action, if any, on matters considered in closed session OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY ADJOURNMENT - The next Board of Directors regular meeting is scheduled for June 23, 2010, at 6:30 p.m. 05/26/10 Page 7 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All 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 all, of the members of District's Board, are available for public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board for discussion and/or action, it will be done in compliance with Section 54954.2(b)as an emergency item or because there is a need to take immediate action,which need came to the attention of the Board subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Board of Directors on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Board of Directors except as authorized by Section 54954.2(b). If you wish to speak, please complete a Speaker's Form (located at the table outside of the Board Room)and give it to the Clerk of the Board. Consent Calendar:All matters placed on the Consent Calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair, state their name, address and designate by number the item to be removed from the Consent Calendar. The Chair will determine if any items are to be deleted from the Consent Calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. ........................................................................................................................................................................................................................................................................................... NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of Directors, items shall be submitted to the Clerk of the Board no later than the close of business 14 days preceding the Board meeting. The Clerk of the Board shall include on the agenda all items submitted by € Directors, the General Manager and General Counsel and all formal communications. General Manager James D. Ruth (714)593-7110 jruth a(�ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli(a)ocsd.com Clerk of the Board Penny Kyle (714)593-7130 pkyle0)ocsd.com Director of Engineering Jim Herberg (714)593-7300 iherberg0)ocsd.com Director of Fin. &Admin Services Lorenzo Tyner (714)593-7550 ItynerC@ocsd.com Director of Operations& Nick Arhontes (714)593-7210 narhontes(@ocsd.com Maintenance Director of Technical Services Ed Torres (714)593-7080 etorres(@ocsd.com ;...General Counsel..............................................Brad Hod!n......................................(714)..415-1006......bhogin(a�wss-law:com.................................. H:\dept\agenda\Board Agendas\2010 Board Agendas\20100526 agenda.docx BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 1 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Penny Kyle, 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 the Board's Rules of Procedures, 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 1st The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to 1 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 regularly-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 2 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION See attached listing. ATTACHMENTS 1. Copies of Claims Paid reports from 04/01/10 - 04/15/10 and 04/16/10 - 04/30/10 Page 1 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Accounts Payable Warrants ABEL Pumps Corp 29792 $ 856.36 Repair&Maintenance Services and/or Supplies ABEL Pumps,Inc. 29640 178.13 Repair&Maintenance Services and/or Supplies AccuStandard 29793 245.95 Laboratory Services&Supplies Advanced Infrastructure Technologies 29794 3,440.85 Mechanical Parts&Supplies AECOM Technical Services,Inc. 29629 37,121.48 Professional Services/Engineering Design Services Aerotek 29795 5,444.16 Professional Services/Temporary Services Agilent Technologies,Inc. 29641 218.34 Laboratory Services&Supplies Agilent Technologies,Inc. 29796 577.85 Laboratory Services&Supplies Air Liquid America Specialty Gases 29797 35.40 Laboratory Services&Supplies Air Products&Chemicals,Inc. 29769 27,166.23 Chemicals,Water/Wastewater Treatment Airgas Safety 29642 1,109.77 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety 29798 11,217.71 Safety,Security,Health Equipment,Supplies,and Services Airgas West 29643 2,333.79 Laboratory Services&Supplies Airgas West 29799 617.86 Laboratory Services&Supplies American Airlines 29644 607.60 Transportation American Electric Components,Inc. 29645 3,271.13 Electrical/Electronic Equipment,Parts&Repairs American Express 29770 36,628.64 Purchasing Card Program for Miscellaneous Parts and Supplies American Payroll Association 29800 195.00 Professional Organization AppleOne Employment Service 29801 1,739.52 Professional Services/Temporary Services Applied Industrial Technology 29802 158.32 Repair&Maintenance Services and/or Supplies Archie Ivy,Inc. 29803 4,473.00 Facilities,Maintenance,Services&Supplies ARS Enterprises,Inc. 29804 592.62 Laboratory Services&Supplies Ashbrook Simon Hartley Operations,L.P. 29646 18,507.70 Repair&Maintenance Services and/or Supplies Ashbrook Simon Hartley Operations,L.P. 29805 12,142.12 Repair&Maintenance Services and/or Supplies Aspen Publishers,Inc. 29647 351.00 Books and Publications AT&T Mobility II,L.L.C. 29649 8,752.97 Telecommunications AT&T Universal Biller 29648 6,002.82 Telecommunications Awards&Trophies Company 29806 819.28 Awards and Framing Services AWSI 29807 35.00 Professional Services-DOT Program Administration Basic Chemical Solutions,L.L.C. 155 14,365.68 Chemicals,Water/Wastewater Treatment Battery Specialties 29650 371.93 Batteries,Various Battery Specialties 29808 400.65 Batteries,Various Beach Wire and Cable 29809 141.38 Computers,Software/Hardware Bell Pipe&Supply Co. 29810 4,008.53 Repair&Maintenance Services and/or Supplies Belzona Systems of California,Inc. 29811 4,987.13 Repair&Maintenance Services and/or Supplies Ben Meadows Company,Inc. 29812 797.37 Laboratory Services&Supplies Bently Nevada,L.L.C. 29651 4,873.50 Professional Organization&Meeting/Training Registration BioMerieux Vitek,Inc. 29813 1,054.79 Laboratory Services&Supplies Black&Veatch Corporation 29630 267,999.47 Professional Services/Engineering Design Services Blue Cross of California 29771 554,184.34 Employee Benefits Bluethread Technologies,Inc. 29814 7,068.20 Computers,Software/Hardware&Managed Services BNI Building News 29652 104.40 Books&Publications Bondlogistix L.L.C. 29653 2,250.00 Professional Financial Services Bush&Associates,Inc. 29654 2,334.00 Professional Services/Surveying Services Butier Engineering,Inc. 29772 109,772.06 Professional Services/Engineering Design Services California Barricade Rentals 29815 770.00 Miscellaneous Services California Contract Commercial Designs 29656 2,585.81 Safety,Security,Health Equipment,Supplies,and Services EXHIBIT A fin/210/Ic Page 1 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description California Dept.of Child Support 29657 1,919.51 Judgments Payable Caltrol,Inc. 29816 460.93 Electrical/Electronic Equipment,Parts&Repairs Camali Corp. 29658 8,873.57 Repair&Maintenance Services and/or Supplies Cambridge Isotope Labs 29659 339.44 Laboratory Services&Supplies Cameron Compression Systems 29817 12,109.24 Repair&Maintenance Services and/or Supplies Cameron Welding Supply 29818 39.15 Repair&Maintenance Services and/or Supplies Carl Warren&Co. 29819 1,442.35 Professional Services-Workers'Compensation Carollo Engineers 29631 77,188.72 Professional Services/Engineering Design Services Carrier Sales&Distribution,L.L.C. 29820 96.73 Repair&Maintenance Services and/or Supplies CASA 29821 105.00 Professional Organizations Meeting/Training/Membership Dues CEPA Company 29660 1,797.50 Laboratory Services&Supplies Certified Truck Bodies 29661 1,359.38 Autos,Trucks&Marine Equipment,Parts,Accessories&Services City National Bank 29784 43,174.50 Construction,Retention City of Huntington Beach 29865 13.25 Water Use City of Tustin 29662 250.00 Professional Organization&Meeting/Training Registration Colich&Sons 29783 926,100.00 Construction Colligo Networks,Inc. 29663 20,000.00 Computer Applications&Services Columbia Analytical Services 29822 440.00 Laboratory Services&Supplies Consiliant Technologies 29664 13,090.00 Computer Applications&Services Consolidated Electrical Dist.,Inc. 29665 237.46 Electrical/Electronic Equipment,Parts&Repairs Consumers Pipe&Supply Co. 29666 117.12 Freight on Invoice Consumers Pipe&Supply Co. 29824 1,682.92 Repair&Maintenance Services and/or Supplies Con-Way Western Express 29823 243.27 Freight Corporate Image Maintenance,Inc. 29632 36,532.50 Janitor&Household Service&Supplies Cortech Engineering 29825 17,206.11 Repair&Maintenance Services and/or Supplies County of Orange Auditor Controller 29765 1,230.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 29826 264.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 29827 176.00 Repair&Maintenance Services and/or Supplies County of Orange Auditor Controller 29956 780.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 29957 585.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 29958 705.00 Governmental Agency Fees&Charges County Wholesale Electric Co. 29828 541.64 Electrical/Electronic Equipment,Parts&Repairs Court Order 29698 1,828.61 Judgments Payable Court Order 29702 150.00 Judgments Payable Court Order 29708 225.00 Judgments Payable Court Order 29728 108.00 Judgments Payable Court Order 29760 912.50 Judgments Payable CR&R,Inc. 29829 758.75 Waste Disposal Crane Veyor Corp. 29830 2,436.00 Repair&Maintenance Services and/or Supplies CS-AMSCO 29831 3,457.03 Repair&Maintenance Services and/or Supplies CSMFO 29832 66.00 Seminar Registration Culligan of Orange County 29833 169.00 Miscellaneous Services Cummins Allison Corp. 29834 397.77 Computer Hardware&Software CWEA 29835 396.00 Professional Organizations Meeting/Training/Memberships Dapper Tire Co. 29836 5,332.37 Autos,Trucks&Marine Equipment,Parts,Accessories&Services David Wheeler Pest Control,Inc. 29837 4,250.00 Pest Control Services David's Tree Service 29667 6,000.00 Groundskeeping David's Tree Service 29838 650.00 Groundskeeping EXHIBIT A fin/210/Ic Page 2 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Delta Dental 29773 67,545.76 Employee Benefits Dion Deas 29953 1,107.41 Meeting/Training Expense Reimbursement DLT&V Systems Engineering,Inc. 29839 345.00 Professional Services/Engineering Design Services Double D Painting 29668 4,745.00 Painting Services Dudek&Associates,Inc. 29840 275.00 Professional Services/Engineering Design Services Dunn-Edwards Corporation 29841 34.59 Painting Services and Supplies EA Services,Inc. 29669 878.76 Repair&Maintenance Services and/or Supplies Eagle Protection of California 29842 275.00 Safety,Security,Health Equipment,Supplies,and Services Eimco Water Technologies 29843 4,480.50 Repair&Maintenance Services and/or Supplies Employee Benefits Specialists,Inc. 29670 14,461.48 Reimbursed Prepaid Employee Medical&Dependent Care Enchanter,Inc. 29844 760.00 Vessel Services-Monitoring Vessel Nerissa Environmental Resource Associates 29671 145.43 Laboratory Services&Supplies Environmental Resource Associates 29845 2,457.77 Laboratory Services&Supplies Environmental Water Solutions,Inc. 29846 5,030.11 Repair&Maintenance Services and/or Supplies Equipment Specialties Co. 29672 1,078.31 Repair&Maintenance Services and/or Supplies Ewing Irrigation 29847 221.24 Irrigation Repair&Maintenance Services and/or Supplies Fedex Corporation 29673 844.56 Freight Services Fedex Corporation 29848 96.79 Freight Services Fisher Scientific 29674 4,686.47 Laboratory Services&Supplies Fisher Scientific 29849 1,342.02 Laboratory Services&Supplies FLW,Inc. 29675 325.19 Electrical/Electronic Equipment,Parts&Repairs Flynn Signs&Graphics,Inc. 29676 598.13 Signs Forkert Engineering&Surveying,Inc. 29677 8,000.50 Professional Services-Surveying Forkert Engineering&Surveying,Inc. 29850 2,300.50 Professional Services-Surveying Franchise Tax Board 29678 1,642.42 Governmental Agency Fees&Charges Franklin Covey 29851 40.81 Office Supplies Frasco Profiles 29852 238.50 Professional Services/Human Resources Full Spectrum Analytics,lnc. 29853 870.69 Lab Instrument Service Geomatrix Consultants,Inc. 29679 1,920.00 Professional Services/Geotech&Material Testing Geomatrix Consultants,Inc. 29854 23,838.86 Professional Services/Geotech&Material Testing Gerard Daniel Worldwide 29855 71.12 Repair&Maintenance Services and/or Supplies Glens Alignment&Brake Service 29680 331.30 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Global Awards,Inc. 29681 22.99 Repair&Maintenance Services and/or Supplies Golden State Overnight Delivery Service 29682 23.29 Courier Services Golden Sun Marketing 29856 320.00 Repair&Maintenance Services and/or Supplies Golden West Window Service 29683 5,200.00 Facilities,Maintenance,Services&Supplies Golden West Window Service 29857 715.00 Facilities,Maintenance,Services&Supplies Grainger,Inc. 29684 2,470.13 Repair&Maintenance Services and/or Supplies Grainger,Inc. 29858 5,883.81 Repair&Maintenance Services and/or Supplies Graybar Electric Company 29859 8,846.70 Electrical/Electronic Equipment,Parts&Repairs Great Western Sanitary Supplies 29860 94.61 Janitor&Household Service&Supplies Guarantee Records Management 29685 809.78 Professional Services-Document Storage&Shredding Hach Company 29686 679.02 Laboratory Services&Supplies Harrington Industrial Plastics,Inc. 29687 114.64 Repair&Maintenance Services and/or Supplies Harrington Industrial Plastics,Inc. 29861 2,302.18 Repair&Maintenance Services and/or Supplies HDR Engineering,Inc. 29774 166,814.63 Professional Services/Engineering Design Services Hill Brothers 147 77,410.88 Chemicals,Water/Wastewater Treatment Hilti,Inc. 29862 2,710.96 Repair&Maintenance Services and/or Supplies EXHIBIT A fin/210/Ic Page 3 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Home Depot 29688 295.51 Miscellaneous Parts and Supplies Hope Health/IHAC 29863 570.95 Benefits Horizon Technology 29689 192.68 Laboratory Services&Supplies Hoshizaki Western DC,Inc. 29864 105.78 Electrical/Electronic Equipment,Parts&Repairs Hub Auto Supply 29690 2,040.87 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Hydrotex 29691 3,061.27 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Indiana Child Support Bureau 29692 290.00 Judgments Payable Industrial Threaded Products,Inc. 29866 1,644.19 Repair&Maintenance Services and/or Supplies Innerline Engineering 29693 12,422.73 Professional Services-Sewer Line Video Inspections Inplant Sales,L.L.C. 29867 930.88 Repair&Maintenance Services and/or Supplies Internal Revenue Service 29694 125.00 Judgments Payable International Business Machines 29869 5,947.26 Computer Applications&Services International Facility Management/OC Chapter 29898 100.00 Professional Organizations Meeting/Training/Membership International Institute of Bus.Analysis 29868 95.00 Professional Organizations Meeting/Training/Memberships Intl.Union of Oper.Eng.AFL CIO Local 501 29695 4,766.87 Dues Deductions IPMC c/o Parsons 29775 1,090,018.00 Professional Services/Temporary Services Irvine Ranch Water District 29870 8.90 Water Use J I Solutions,Inc. 29871 1,148.04 Laboratory Services&Supplies J R Filanc Construction 29696 16,975.00 Repair&Maintenance Services and/or Supplies James D.Herberg 29762 380.63 Meeting/Training Expense Reimbursement Jamison Engineering Contractors,Inc. 29776 27,385.45 Professional Services/Engineering Design Services Jays Catering 29872 576.54 Catering Services JCI Jones Chemicals,Inc. 148 121,951.06 Chemicals,Water/Wastewater Treatment JCI Jones Chemicals,Inc. 152 86,332.19 Chemicals,Water/Wastewater Treatment John L.Hunter&Associates,Inc. 29873 1,900.00 Professional Services/FOG Inspections Johnstone Supply 29697 382.09 Repair&Maintenance Services and/or Supplies Johnstone Supply 29874 314.72 Repair&Maintenance Services and/or Supplies Kaiser Foundation Health Plan 29777 97,406.88 Employee Benefits Kelly Paper 29875 411.09 Office Supplies Kemira Water Solutions 149 159,399.78 Chemicals,Water/Wastewater Treatment Kemira Water Solutions 153 48,312.46 Chemicals,Water/Wastewater Treatment Kings County Tax Collector 29699 14,960.76 Property Taxes L.Johnson Painting 29700 6,325.00 Painting Services and Supplies League of California Cities 29701 1.08 Professional Organization LH Engineering Co. 29787 81,607.50 Construction Liberty Mutual Claims 29633 75,322.42 Insurance Liebert Cassidy 29876 174.00 Professional Services/Employee Relations Los Angeles Times 29877 273.55 Books and Publications Louis Allen Worldwide 29703 8,000.00 Professional Organizations Meeting/Training/Membership Dues Lubrication Engineers,Inc. 29878 5,232.18 Repair&Maintenance Services and/or Supplies Lucci's Gourmet Foods,Inc. 29879 83.90 Catering Services Maintenance Superintendents-MSA 29880 25.00 Professional Organizations Meeting/Training/Memberships Malcolm Pirnie,Inc. 29634 90,406.53 Professional Services/Engineering Design Services Marinus Scientific 29881 93.53 Laboratory Services&Supplies Marvac Electronics 29882 39.30 Electrical/Electronic Equipment,Parts&Repairs Maxim Security Systems 29704 472.40 Safety,Security,Health Equipment,Supplies,and Services McMaster-Carr Supply Co. 29705 3,322.70 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 29883 1,788.92 Repair&Maintenance Services and/or Supplies EXHIBIT A fin/210/Ic Page 4 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Media Resurfacing Systems,Inc. 29706 1,000.00 Repair&Maintenance Services and/or Supplies Medlin Controls Co. 29884 928.33 Repair&Maintenance Services and/or Supplies Mesa Laboratories,Inc. 29885 190.58 Lab Instruments&Supplies Metal Art of CA DBA Sign Mart 29707 416.50 Repair&Maintenance Services and/or Supplies Metal Art of CA DBA Sign Mart 29886 416.50 Repair&Maintenance Services and/or Supplies Mid-West Associates,Inc. 29635 59,069.10 Repair&Maintenance Services and/or Supplies Mine Safety Appliance 29887 2,461.60 Electrical/Electronic Equipment,Parts&Repairs Mladen Buntich Construction Company 29788 388,570.50 Construction Morrow Meadows Corp. 29639 97,048.80 Construction N Glantz&Son,Inc. 29888 1,265.86 Repair&Maintenance Services and/or Supplies National Bond&Trust 29709 1,990.59 U.S.Savings Bonds Payroll Deductions National Notary Association 29889 112.50 Professional Organizations Meeting/Training/Membership Neal Supply Co. 29890 675.54 Repair&Maintenance Services and/or Supplies Neutron Products,Inc. 29710 6,012.14 Chemicals,Water/Wastewater Treatment Neutron Products,Inc. 29891 3,022.38 Chemicals,Water/Wastewater Treatment Nickell Metal Spray 29711 1,050.00 Repair&Maintenance Services and/or Supplies NRG Engine Services,L.L.C. 29712 1,798.00 Repair&Maintenance Services and/or Supplies NRG Engine Services,L.L.C. 29892 918.57 Repair&Maintenance Services and/or Supplies OCB Reporgraphics 29893 972.86 Printing/Reprographics Services OCEA 29714 643.00 Dues Deductible O'Connell Engineering&Construction,Inc. 29713 8,510.00 Repair&Maintenance Services and/or Supplies Office Depot 29715 4,007.94 Office Supplies Office Depot 29894 6,728.77 Office Supplies Olin Corporation 29716 3,885.79 Chemicals,Water/Wastewater Treatment Olin Corporation 29895 4,081.83 Chemicals,Water/Wastewater Treatment OMI Industries 29896 1,115.00 Chemicals,Water/Wastewater Treatment OneSource Distributors,Inc. 29717 166.78 Electrical/Electronic Equipment,Parts&Repairs OneSource Distributors,Inc. 29897 5,790.68 Electrical/Electronic Equipment,Parts&Repairs Oracle USA,Inc. 29718 19,870.71 Computer Applications&Services Orange County Sanitation District 29766 1,118.49 Petty Cash Expense Orange County United Way 29719 40.00 Employee Contributions Orange County Water District 29778 242,998.05 GAP Water Oxygen Service Company 29899 1,554.63 Laboratory Services&Supplies Pacific Mechanical Supply 29720 3,303.83 Repair&Maintenance Services and/or Supplies Pacific Mechanical Supply 29900 4,193.11 Repair&Maintenance Services and/or Supplies Pamela A.Koester 29763 119.00 Meeting/Training Expense Reimbursement Parkhouse Tire,Inc. 29901 963.63 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Patrick McCallum 29655 450.00 Meeting/Training Expense Reimbursement PBS&J 29636 45,126.41 Professional Services/Engineering Design Services Peace Officers Council of CA 29721 2,357.50 Dues Deductions,Supervisors&Professionals Peerless Wiping Materials Co. 29902 799.53 Janitor&Household Service&Supplies Performance Pipeline Technologies 29903 7,550.00 Professional Services/CCTV Inspection PerkinElmer Labs 29722 197.66 Laboratory Services&Supplies PL Hawn Company,Inc. 29723 167.30 Repair&Maintenance Services and/or Supplies PL Hawn Company,Inc. 29904 2,859.09 Repair&Maintenance Services and/or Supplies Polydyne,Inc. 150 31,781.46 Chemicals,Water/Wastewater Treatment Polydyne,Inc. 154 31,712.35 Chemicals,Water/Wastewater Treatment Praxair Distribution,Inc. 29905 69.89 Laboratory Services&Supplies EXHIBIT A fin/210/Ic Page 5 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Primrose Ice Co.,Inc. 29724 100.00 Water&Ice Services Projectline Technical Services,Inc. 29725 5,075.00 Professional Services/Engineering Design Services Propipe Professional Pipe Services 156 19,150.82 Professional Services/Sewerline Cleaning Prudential Overall Supply 29726 5,249.00 Uniforms Pumping Solutions,Inc. 29727 10,937.88 Repair&Maintenance Services and/or Supplies Rainbow Disposal Co. 29906 3,376.48 Waste Disposal RBF Consulting 29907 3,406.91 Professional Services/Engineering Design Services Ready to Manage,Inc. 29908 99.00 Books&Publications Restek Corp. 29909 490.64 Laboratory Services&Supplies Retrofit Parts&Components,Inc. 29729 1,544.98 Repair&Maintenance Services and/or Supplies Rory Rea&Dell 29767 1,822.64 Employee Computer Loan Program Royale Cleaners 29730 217.10 Miscellaneous Services RPM Electric Motors 29731 4,665.00 Repair&Maintenance Services and/or Supplies RPM Electric Motors 29910 11,189.04 Repair&Maintenance Services and/or Supplies San Diego/Orange Fluid System Technologies,Inc. 29911 1,139.00 Repair&Maintenance Services and/or Supplies Sancon Engineering,Inc. 29779 57,095.00 Repair&Maintenance Services and/or Supplies Schenck Trebel 29733 600.00 Repair&Maintenance Services and/or Supplies Schwing Bioset 151 5,281.20 Repair&Maintenance Services and/or Supplies Schwing Bioset 157 9,174.46 Repair&Maintenance Services and/or Supplies SCP Science 29913 555.00 Laboratory Services&Supplies SETAC 29914 100.00 Professional Organizations Meeting/Training/Membership Sewer Equipment Company of America 29734 396.34 Repair&Maintenance Services and/or Supplies Shamrock Supply Co.,Inc. 29735 57.22 Repair&Maintenance Services and/or Supplies Shamrock Supply Co.,Inc. 29915 2,127.56 Repair&Maintenance Services and/or Supplies Shimmick Construction Co.,Inc. 29768 2,765.90 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 29736 3,236.73 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 29916 6,148.84 Repair&Maintenance Services and/or Supplies Siemens c/o Jensen Instrument Co. 29917 1,894.50 Electrical/Electronic Equipment,Parts&Repairs Sigma-Aldrich,Inc. 29918 132.92 Laboratory Services&Supplies SKC West,Inc. 29919 346.30 Laboratory Services&Supplies Smardan Supply Company 29920 110.93 Repair&Maintenance Services and/or Supplies Smith-Emery Company 29921 6,239.53 Professional Services/Geotech&Material Testing So.Cal Gas Company 29780 31,296.95 Utilities South Coast Environmental Co. 29732 1,718.84 Professional Services-Air Quality Monitoring South Coast Environmental Co. 29912 684.08 Professional Services-Air Quality Monitoring Southern California Edison 29922 1,474.00 Utilities Southland Restorations,Inc. 29923 4,100.00 Repair&Maintenance Services and/or Supplies Sparkletts 29924 928.80 Miscellaneous Services Sparling Instruments,Inc. 29737 1,848.37 Electrical/Electronic Equipment,Parts&Repairs SPEX Certiprep,Inc. 29738 438.49 Laboratory Services&Supplies St.Croix Sensory,Inc. 29739 1,320.00 Outside Laboratory Services St.Croix Sensory,Inc. 29925 1,775.00 Outside Laboratory Services Staples 29926 1,395.64 Office Supplies Stephen Patrick Myers 29935 310.00 Miscellaneous Pool Services Stratus Environmental,Inc. 29740 3,375.00 Professional Services/Engineering Design Services Summit Steel 29927 4,811.89 Repair&Maintenance Services and/or Supplies Sunset Ford 29741 39.66 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Sunset Industrial Parts 29742 677.94 Repair&Maintenance Services and/or Supplies EXHIBIT A fin/210/Ic Page 6 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Sunset Industrial Parts 29928 95.00 Repair&Maintenance Services and/or Supplies Super Chem Corporation 29929 1,363.73 Repair&Maintenance Services and/or Supplies Superior Sales Co. 29743 9,670.92 Repair&Maintenance Services and/or Supplies Synagro West,Inc. 29744 21,843.22 Biosolids Management Teldata Enterprise Networks 29745 3,924.95 Computers,Software/Hardware Teledyne Electronic 29746 201.30 Electrical/Electronic Equipment,Parts&Repairs TestAmerica 29747 167.00 Laboratory Services&Supplies TestAmerica Ontario 29930 906.00 Laboratory Services&Supplies The Wackenhut Corporation 29638 32,643.47 Safety,Security,Health Equipment,Supplies,and Services The Walking Man,Inc. 29931 575.00 Miscellaneous Services Thompson Industrial Supply,Inc. 29932 5,825.57 Repair&Maintenance Services and/or Supplies Tiano Construction 29933 8,400.00 Facilities,Maintenance,Services&Supplies Tim H.Hopkins 29960 917.98 Employee Computer Loan Program T-Mobile 29748 108.26 Telecommunications Tony's Lock&Safe Service&Sales 29934 1,210.69 Repair&Maintenance Services and/or Supplies Total Resource Management,Inc. 29749 15,000.00 Professional Organizations Meeting/Training/Memberships Townsend Public Affairs 29936 7,500.00 Professional Services-State Advocacy Tran Consulting Engineers 29750 4,722.30 Professional Services/Engineering Design Services Tremco Incorporated 29751 2,864.38 Repair&Maintenance Services and/or Supplies Tropical Plaza Nursery,Inc. 29752 13,016.50 Landscape Maintenance Services Truck&Auto Supply,Inc. 29937 58.09 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Trung T.Nguyen 29955 802.45 Meeting/Training Expense Reimbursement Tule Ranch/Magan Farms 29781 118,407.99 Biosolids Management Turblex,Inc. 29938 3,910.50 Repair&Maintenance Services and Supplies Tyler T.Hoang 29959 1,797.60 Employee Computer Loan Program United Parcel Service 29753 74.16 Freight Services United Parcel Service 29939 30.35 Freight Services US Peroxide,L.L.C. 29637 59,243.26 Chemicals,Water/WastewaterTreatment US Peroxide,L.L.C. 29940 15,048.35 Chemicals,Water/WastewaterTreatment USA Mobility Wireless,Inc. 29941 648.94 Telecommunications Vapex Products,Inc. 29942 10,453.35 Electrical/Electronic Equipment,Parts&Repairs Varian,Inc. 29943 343.46 Laboratory Services&Supplies Verizon California 29754 1,678.28 Telecommunications Verizon OnLine(Gte.net LLC) 29944 99.99 Telecommunications Verne's Plumbing 29945 455.00 Plumbing Services&Supplies Vision Service Plan CA 29946 9,555.90 Employee Benefits Vladimir A.Kogan 29954 1,490.60 Meeting/Training Expense Reimbursement Voided Check 29785 - Voided Check 29786 Voided Check 29790 - Voyager Fleet Systems,Inc. 29947 16,869.54 Fuel Card Program VWR Scientific Products 29755 65.44 Laboratory Services&Supplies VWR Scientific Products 29948 4,964.63 Laboratory Services&Supplies Waldron,Kathy L. 29764 104.42 Meeting/Training Expense Reimbursement Water Environment Federation 29756 217.00 Professional Organizations Meeting/Training/Memberships Weck Laboratories,Inc. 29949 192.00 Laboratory Services&Supplies Wells Fargo Bank Escrow 23518600 29789 146,206.60 Construction Wells Fargo Bank Escrow 23861100 Kiewit 29791 154,932.70 Construction,Retention EXHIBIT A fin/210/Ic Page 7 of 8 4/22/2010 Claims Paid From 04/01/10 to 04/15/10 Vendor Warrant No. Amount Description Weltec Welding Alloys 29950 432.09 Repair&Maintenance Services and/or Supplies West Lite Supply Company,Inc. 29757 95.29 Electrical/Electronic Equipment,Parts&Repairs Weston Solutions,Inc. 29782 56,056.00 Laboratory Services&Supplies Xerox Corporation 29758 168.34 Computers,Software/Hardware&Managed Services Xerox Corporation 29951 1,235.15 Computers,Software/Hardware&Managed Services Yale/Chase Materials Handling,Inc. 29759 180.47 Electrical/Electronic Equipment,&Electric Cart Parts&Repairs Yale/Chase Materials Handling,Inc. 29952 4,893.75 Electrical/Electronic Equipment,&Electric Cart Parts&Repairs 4X Diagnostics,L.L.C. 29761 6,023.39 Repair&Maintenance Services and/or Supplies Total Accounts Payable-Warrants $ 6,726,870.30 Payroll Disbursements Employee Paychecks 44386 - 44411 $ 6,365.50 Interim Payroll-ARBA(04/01/10) Employee Paychecks 44412 - 44475 110,543.05 Biweekly Payroll(04/07/10) Employee Paychecks 44476 - 44477 2,173.49 Interim Payroll-Void/Reissue(04/13/10) Direct Deposit Statements 186007 -186109 17,349.00 Interim Payroll-ARBA(04/01/10) Direct Deposit Statements 186110 -186685 1,397,283.52 Biweekly Payroll(04/08/10) Total Payroll Disbursements $ 1,533,714.56 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 813,608.96 Biweekly Payroll(04/07/10) Intercare Holdings Insurance Svcs.,Inc. 34,112.36 Workers'Compensation Service(04/13/10) Kiewit/Mass,A Joint Venture 1,315,859.40 Construction Progress Payment Re 5-49(04/15/10) Kiewit/Mass,A Joint Venture 749,994.30 Construction Progress Payment Re 5-50(04/15/10) J.F.Shea Construction,Inc. 5,563,705.92 Construction Progress Payment P2-90(04/15/10) Total Wire Transfer Payments $ 8,477,280.94 Total Claims Paid 04/01/10-04/15/10 $ 16,737,865.80 EXHIBIT A fin/210/Ic Page 8 of 8 4/22/2010 Claims Paid From 04/16/10 to 04/30/1C Vendor Warrant No. Amount Description Accounts Payable Warrants A&J Sheet Metal,Inc. 29972 $ 195.75 Repair&Maintenance Services and/or Supplies A W Chesterton 30114 931.56 Repair&Maintenance Services and/or Supplies Absolute Standards,Inc. 30115 361.00 Laboratory Services&Supplies AECOM Technical Services,Inc. 29973 17,140.46 Professional Services/Engineering Design Services Agilent Technologies,Inc. 30116 1,438.74 Laboratory Services&Supplies Airgas Safety 29974 1,428.66 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety 30118 17,765.81 Safety,Security,Health Equipment,Supplies,and Services AKM Consulting Engineers 29975 17,400.00 Professional Services/Dig Alert Associate Engineer Alan Plummer Associates 30119 6,450.00 Professional Services/Engineering Design Services Alhambra Foundry Co.,Ltd. 30120 19,651.14 Repair&Maintenance Services and/or Supplies Allied Packing&Rubber,Inc. 30121 101.94 Repair&Maintenance Services and/or Supplies American Public Works Association 30122 2,900.00 Professional Organizations Meeting/Training/Memberships American Training Resources,Inc. 30123 934.33 Safety,Security,Health Equipment,Supplies,and Services Amtech Elevator Services 29976 1,639.25 Miscellaneous Services Applied Industrial Technology 30124 164.65 Repair&Maintenance Services and/or Supplies Aquatic Biosystems,Inc. 30125 300.50 Laboratory Services&Supplies Arizona Instrument 29977 1,496.68 Instrument Repairs&Calibration Services and/or Supplies Ashbrook Simon Hartley Operations,L.P. 30126 93.91 Repair&Maintenance Services and/or Supplies AT&T 30113 218.20 Telecommunications AT&T Long Distance. 29979 51.38 Telecommunications AT&T Mobility II,L.L.C. 29980 148.99 Telecommunications AT&T Universal Biller 29978 1,021.10 Telecommunications Atom Engineering Construction 29961 104,049.00 Repair&Maintenance Services and/or Supplies Aurora Pictures,Inc. 30127 199.00 Safety,Security,Health Equipment,Supplies,and Services Austin Building and Design dba The Austin Company 30128 4,549.49 Professional Services/Engineering Design Services AWSI 30129 133.00 Professional Services-DOT Program Administration AWWA 29981 198.00 Professional Organizations Meeting/Training/Membership Bank of New York Mellon 30130 1,763.34 Professional Services-Financial Basic Chemical Solutions,L.L.C. 163 9,886.10 Chemicals,Water/Wastewater Treatment Battery Specialties 30131 1,000.50 Batteries,Various BC Wire Rope&Rigging 30132 1,200.00 Tools&Supplies Beach Wire and Cable 29982 28.28 Telecommunications Beaver Packaging&Crating of California 29983 125.00 Freight Charges Biospherical Instruments,Inc. 30133 577.40 Repair&Maintenance Services and/or Supplies Black&Veatch Corporation 29962 129,033.97 Professional Services/Engineering Design Services Black&Veatch Corporation 30100 96,332.98 Professional Services/Engineering Design Services Blue Diamond Car Wash,Inc. 29984 1,042.99 Facilities,Maintenance,Services&Supplies Bongarde Holdings,Ltd. 30134 4,799.00 Professional Organizations Meeting/Training/Memberships BP Energy Company 30135 23,889.30 Natural Gas Brown&Caldwell 29963 137,480.91 Professional Services/Engineering Design Services Brown&Caldwell 30101 26,459.71 Professional Services/Engineering Design Services Bush&Associates,Inc. 30136 3,104.00 Professional Services/Surveying Services CALGAZ,Div.of Air Liquide Adv.Tech.,U.S.L.L.C. 30117 1,157.24 Laboratory Services&Supplies California Dept.of Child Support 29985 1,919.51 Judgments Payable California Relocation Services,Inc. 29986 765.00 Miscellaneous Services-Moving/Relocation Campbell Window Tinting 30137 520.00 Miscellaneous Services CAPPO,Inc. 30138 49.00 Professional Organizations Meeting/Training/Memberships EXHIBIT B fin/210/Ic Page 1 of 7 5/12/2010 Claims Paid From 04/16/10 to 04/30/1U Vendor Warrant No. Amount Description Career Track 30139 149.00 Professional Organizations Meeting/Training/Memberships Carl Warren&Co. 30140 300.00 Professional Services-Workers'Compensation CASA 29987 640.00 Professional Organizations Meeting/Training/Membership Dues City of Garden Grove 29988 208.92 Water Use City of Huntington Beach 30172 14,484.34 Water Use City of Newport Beach 30197 495.61 Water Use City of Westminster 30141 1,328.69 Water Use Clean Harbors Environmental Services 29989 15,306.60 Grit&Screenings;Hazard Waste Disposal Clean Harbors Environmental Services 30142 3,718.86 Grit&Screenings;Hazard Waste Disposal CMAA 29990 750.00 Professional Organizations Meeting/Training/Memberships Coastal Training Technologies 30143 5,400.00 Web-based Safety Training Cole-Parmer Instrument Co. 29991 294.49 Laboratory Services&Supplies Consiliant Technologies 29992 9,930.00 Computer Applications&Services Consolidated Electrical Dist.,Inc. 30144 1,244.10 Electrical/Electronic Equipment,Parts&Repairs Corporate Image Maintenance,Inc. 29993 380.00 Janitor&Household Service&Supplies CORRPRO Companies,Inc. 30102 34,903.50 Professional Services/Temporary Services Cortech Engineering 30145 861.30 Repair&Maintenance Services and/or Supplies Council on Education in Management 29994 3,140.00 Professional Organizations Meeting/Training/Membership County of Orange Auditor Controller 30258 645.00 Governmental Agency Fees&Charges Court Order 30025 1,828.61 Judgments Payable Court Order 30028 150.00 Judgments Payable Court Order 30033 225.00 Judgments Payable Court Order 30057 108.00 Judgments Payable Court Order 30092 912.50 Judgments Payable CR&R,Inc. 29995 846.30 Waste Disposal CS-AMSCO 30146 2,136.41 Repair&Maintenance Services and/or Supplies CSI Services,Inc. 30147 740.00 Professional Services/Engineering Design Services Culligan of Orange County 29996 56.70 Miscellaneous Services CWEA 29997 530.00 Professional Organizations Meeting/Training/Memberships David Wheeler Pest Control,Inc. 29998 4,250.00 Pest Control Services David's Tree Service 30148 8,025.00 Groundskeeping Duc M.Pham 30257 375.00 Meeting/Training Expense Reimbursement Dunn-Edwards Corporation 30149 132.26 Painting Services and Supplies E.Sam Jones Distributors,Inc. 30150 156.60 Electrical/Electronic Equipment,Parts&Repairs Eimco Water Technologies 29999 228.38 Repair&Maintenance Services and/or Supplies Electro Numerics 30151 2,892.97 Electrical/Electronic Equipment,Parts&Repairs Employee Benefits Specialists,Inc. 30000 14,058.48 Reimbursed Prepaid Employee Medical&Dependent Care Enchanter,Inc. 30001 1,520.00 Vessel Services-Monitoring Vessel Nerissa ENS Resources,Inc. 30002 7,500.00 Professional Services-Federal Advocacy Environmental Resource Associates 30003 80.26 Laboratory Services&Supplies Envirosim Associates,Ltd. 30152 5,656.00 Computer Applications&Services Fedex Corporation 30153 102.54 Freight Services Ferguson Waterworks 30154 133.28 Repair&Maintenance Services and/or Supplies First American Corelogic 30004 1,077.57 Computer Applications&Services Fisher Scientific 30155 1,148.03 Laboratory Services&Supplies Fleetmatics USA,Inc. 30005 152.08 Professional Services-Human Resources Fleetmatics USA,Inc. 30156 304.16 Professional Services-Human Resources Fleming Environmental,Inc. 30006 1,882.84 Repair&Maintenance Services and/or Supplies EXHIBIT B fin/210/Ic Page 2 of 7 5/12/2010 Claims Paid From 04/16/10 to 04/30/1U Vendor Warrant No. Amount Description Flow Sciences,Inc. 30157 632.22 Laboratory Services&Supplies FLW,Inc. 30158 1,783.33 Electrical/Electronic Equipment,Parts&Repairs Franchise Tax Board 30007 1,519.41 Governmental Agency Fees&Charges Frys Electronics 30159 205.47 Computers,Software/Hardware Gardner-Denver c/o Misco 30008 570.15 Repair&Maintenance Services and/or Supplies Garratt Callahan Company 30160 561.84 Chemicals,Water/Wastewater Treatment Gates Fiberglass Installers 30009 4,981.88 Repair&Maintenance Services and/or Supplies Geomatrix Consultants,Inc. 30010 13,180.00 Professional Services/Geotech&Material Testing Geomatrix Consultants,Inc. 30161 9,272.50 Professional Services/Geotech&Material Testing Gierlich-Mitchell,Inc. 30162 17,378.07 Repair&Maintenance Services and/or Supplies GMR Transcription 30163 1,756.70 Professional Services-Transcription Golden State Overnight Delivery Service 30011 258.79 Courier Services Golden State Overnight Delivery Service 30164 82.22 Courier Services Golden West Machine,Inc. 30012 4,976.40 Repair&Maintenance Services and/or Supplies Golden West Window Service 30013 9,652.00 Facilities,Maintenance,Services&Supplies Grainger,Inc. 30014 53.76 Repair&Maintenance Services and/or Supplies Grainger,Inc. 30165 194.28 Repair&Maintenance Services and/or Supplies Graybar Electric Company 30166 18.94 Electrical/Electronic Equipment,Parts&Repairs Guarantee Records Management 30015 360.46 Professional Services-Document Storage&Shredding Hach Company 30167 784.87 Laboratory Services&Supplies Hai-Thao T.Huynh 30256 807.15 Meeting/Training Expense Reimbursement Haldeman,Inc. 30168 3,782.33 Repair&Maintenance Services and/or Supplies Hampton Tedder Technical Services 30169 2,806.00 Professional Services/Electrical Acceptance Testing-Various Harrington Industrial Plastics,Inc. 30016 973.86 Repair&Maintenance Services and/or Supplies Harrington Industrial Plastics,Inc. 30170 5,190.43 Repair&Maintenance Services and/or Supplies Hasler,Inc. 30017 94.61 Postage Meter Rental HDR Engineering,Inc. 29964 53,991.15 Professional Services/Engineering Design Services Hertz Equipment Rental Corporation 30171 13,648.13 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Hill Brothers 160 72,509.75 Chemicals,Water/Wastewater Treatment Home Depot 30018 4,857.12 Miscellaneous Parts and Supplies Hyatt Legal Plans,Inc. 30173 1,062.00 Voluntary Employee Benefit Program ICC International Code Council 30174 100.00 Professional Organization Indiana Child Support Bureau 30019 290.00 Judgments Payable Industrial Distribution Group 30176 39.15 Repair&Maintenance Services and/or Supplies Industrial Fabrics Corp. 30177 6,619.50 Repair&Maintenance Services and/or Supplies Information Handling Services 30175 78.60 Computer Applications&Services Inland Chevrolet 30103 37,861.16 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Intercare Holdings Insurance Svcs., Inc. 30020 3,216.67 Workers'Compensation Service Internal Revenue Service 30021 125.00 Judgments Payable Intl.Union of Oper.Eng.AFL CIO Local 501 30022 4,813.53 Dues Deductions Intratek Computer,Inc. 30178 3,677.64 Network&Server Maintenance Invensys Systems,Inc. 30179 1,890.81 Electrical/Electronic Equipment,Parts&Repairs Irvine Ranch Water District 30180 49.30 Water Use Jamison Engineering Contractors,Inc. 30023 830.74 Professional Services/Engineering Design Services Jays Catering 30181 1,156.74 Catering Services JCI Jones Chemicals,Inc. 158 87,950.42 Chemicals,Water/Wastewater Treatment JCI Jones Chemicals,Inc. 161 97,418.14 Chemicals,Water/Wastewater Treatment Jensen Instrument Co. 30182 728.93 Electrical/Electronic Equipment,Parts&Repairs EXHIBIT B fin/210/Ic Page 3 of 7 5/12/2010 Claims Paid From 04/16/10 to 04/30/1U Vendor Warrant No. Amount Description Johnstone Supply 30024 151.86 Repair&Maintenance Services and/or Supplies Johnstone Supply 30183 175.46 Repair&Maintenance Services and/or Supplies Joseph W.Park,Jr. 30096 125.00 Meeting/Training Expense Reimbursement Kemira Water Solutions 159 154,307.02 Chemicals,Water/Wastewater Treatment Kemira Water Solutions 162 27,736.40 Chemicals,Water/Wastewater Treatment Ken Thompson,Inc. 30112 52,393.00 Construction L.Johnson Painting 30026 5,500.00 Painting Services and Supplies Lee&Ro,Inc. 29965 36,394.51 Professional Services/Engineering Design Services Lee&Ro,Inc. 30184 1,627.83 Professional Services/Engineering Design Services Liberty Mutual Claims 30027 5,496.89 Insurance Lucci's Gourmet Foods,Inc. 30185 174.90 Catering Services Ludeca,Inc. 30186 1,520.45 Repair&Maintenance Services and/or Supplies M.J.Schiff and Associates,Inc. 30187 18,448.80 Professional Services Mainline Information Systems 30029 865.65 Computer Applications&Services Malcolm Pirnie,Inc. 29966 26,399.00 Professional Services/Engineering Design Services Malcolm Pirnie,Inc. 30104 460,233.43 Professional Services/Engineering Design Services Mandrick S.Taylor 30098 742.00 Meeting/Training Expense Reimbursement Marvac Electronics 30188 25.05 Electrical/Electronic Equipment,Parts&Repairs Matt Chlor,Inc. 30189 3,632.30 Repair&Maintenance Services and/or Supplies Mayer Hoffman McCann,PC 30190 255.00 Professional Services-Auditing McMaster-Carr Supply Co. 30030 906.28 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 30191 1,007.85 Repair&Maintenance Services and/or Supplies McMurray-Stern 30192 1,310.88 Repair&Maintenance Services and Supplies Medland&Associates,Inc. 30031 157.42 Electrical/Electronic Equipment,Parts&Repairs Medlin Controls Co. 30193 3,257.58 Repair&Maintenance Services and/or Supplies Mine Safety Appliance 30194 2,473.21 Electrical/Electronic Equipment,Parts&Repairs Mission Abrasive&Janitorial Supplies 30032 511.01 Janitorial&Household Services&Supplies MWH Americas,Inc. 29967 47,724.15 Professional Services/Engineering Design Services National Bond&Trust 30034 1,990.59 U.S.Savings Bonds Payroll Deductions Ncompliance Services 30035 89.00 On-Line Webinar Training-1099 Seminar Neal Supply Co. 30195 1,631.09 Repair&Maintenance Services and/or Supplies Neutron Products,Inc. 30196 3,011.94 Chemicals,Water/Wastewater Treatment Nickell Metal Spray 30036 850.00 Repair&Maintenance Services and/or Supplies Norco Delivery 30198 453.56 Delivery Services Norman A.Olsson Construction,Inc. 30111 215,098.20 Construction NRG Engine Services,L.L.C. 30037 6,636.23 Repair&Maintenance Services and/or Supplies O C Tanner Recognition Company 30038 11,844.29 Service Awards OCB Reprographics 30199 18,790.19 Printing/Reprographics Service OCEA 30039 633.25 Dues Deductible Office Depot 30040 870.05 Office Supplies Office Depot 30200 1,161.05 Office Supplies Olin Corporation 30201 3,752.75 Chemicals,Water/Wastewater Treatment Omega Industrial Supply,Inc. 30202 2,010.29 Janitor&Household Service&Supplies OneSource Distributors,Inc. 30041 129.89 Electrical/Electronic Equipment,Parts&Repairs OneSource Distributors,Inc. 30203 11,223.57 Electrical/Electronic Equipment,Parts&Repairs Oracle Corporation 30042 2,015.98 Computer Applications&Services Orange Community Bank 30255 23,899.80 Construction,Retention Orange County United Way 30044 40.00 Employee Contributions EXHIBIT B fin/210/Ic Page 4 of 7 5/12/2010 Claims Paid From 04/16/10 to 04/30/1U Vendor Warrant No. Amount Description Orange County Water District 30105 49,180.95 GAP Water ORE Offshore 30045 1,209.31 Laboratory Services&Supplies Oxygen Service Company 30046 755.44 Laboratory Services&Supplies Oxygen Service Company 30204 524.69 Laboratory Services&Supplies Pacific Mechanical Supply 30047 1,015.69 Repair&Maintenance Services and/or Supplies Pacific Mechanical Supply 30205 1,183.40 Repair&Maintenance Services and/or Supplies Pacific Services,Inc. 30206 24,977.62 Computers,Software/Hardware Packet Fusion,Inc. 30106 42,567.00 Computer Applications&Services Patriot Video Productions 30207 733.10 Miscellaneous Services Paulus Engineering,Inc. 30048 21,730.72 Repair&Maintenance Services-Sink Hole PC Mall Gov,Inc. 30208 2,000.00 Computer Applications&Services Peace Officers Council of CA 30049 2,334.50 Dues Deductions,Supervisors&Professionals Performance Pipeline Technologies 30050 6,890.00 Repair&Maintenance Services-Grit/Grease Removal PL Hawn Company,Inc. 30051 17.68 Repair&Maintenance Services and/or Supplies PL Hawn Company,Inc. 30209 402.20 Repair&Maintenance Services and/or Supplies Planet Associates 30210 10,000.00 Computer Applications&Services Polydyne,Inc. 164 24,383.69 Chemicals,Water/WastewaterTreatment Powerflo Products,Inc. 30052 5,259.82 Repair&Maintenance Services and/or Supplies PR Electronics,Inc. 30053 1,375.42 Instrument Parts&Supplies Precision Wallcovering 30211 4,510.00 Facilities,Maintenance,Services and/or Supplies Procare Work Injury Center 30054 395.00 Medical Services Projectline Technical Services,Inc. 30055 17,440.00 Professional Services/Engineering Other Propipe Professional Pipe Services 165 14,466.33 Professional Services/Sewerline Cleaning Prudential Insurance Company of America 30107 41,347.66 Benefits Prudential Overall Supply 30056 2,081.94 Uniforms Prudential Overall Supply 30212 1,539.31 Uniforms Pump Engineering 30213 2,030.22 Repair&Maintenance Services and/or Supplies R L Abbott&Associates 30214 1,000.00 Professional Services/Advocacy Efforts Rainin Instrument,L.L.C. 30215 244.69 Laboratory Services&Supplies RBF Consulting 30058 14,591.00 Professional Services/Engineering Design Services Red Wing Shoes 30216 392.72 Safety,Security,Health Equipment,Supplies,and Services Reliastar 30217 4,931.56 Voluntary Employee Life&Cancer Insurance RM Automation c/o RM Controls 30218 43.81 Paper&Office Supplies RMB Engineering&Sales,Inc. 30059 3,535.41 Electrical/Electronic Equipment,Parts&Repairs RMC Project Management,Inc. 30060 412.95 Professional Organizations Meeting/Training/Memberships Rockhurst College Continuing Education 30219 199.00 Professional Organizations Meeting/Training/Membership Roto Rooter NOC#11 30061 510.00 Repair&Maintenance Services and/or Supplies Royale Cleaners 30062 213.80 Miscellaneous Services RPM Electric Motors 30063 845.06 Repair&Maintenance Services and/or Supplies RPM Electric Motors 30220 2,321.63 Repair&Maintenance Services and/or Supplies RSA Soil Products 30064 2,270.63 Miscellaneous Parts and Supplies Russelectric,Inc. 30221 967.07 Electrical Parts&Supplies S.S.Mechnical Corporation 29968 90,475.00 Professional Services/Engineering Design Services Sachs Electric Company 29971 409,133.90 Professional Services/Central Generation Automation Safety Environmental Consulting 30222 995.00 Safety,Security,Health Equipment,Supplies,and Services Safetycare,Inc. 30223 271.87 Safety,Security,Health Equipment,Supplies,and Services San Diego/Orange Fluid System Technologies,Inc. 30224 930.45 Repair&Maintenance Services and/or Supplies Sancon Engineering,Inc. 29969 35,320.00 Repair&Maintenance Services and/or Supplies EXHIBIT B fin/210/Ic Page 5 of 7 5/12/2010 Claims Paid From 04/16/10 to 04/30/1U Vendor Warrant No. Amount Description SARBS 30099 125.00 Professional Organizations&Meeting/Training Registration SARBS 30259 1,000.00 Professional Organizations&Meeting/Training Registration Schwing Bioset 166 91.99 Repair&Maintenance Services and/or Supplies Shamrock Supply Co.,Inc. 30225 137.81 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 30226 432.50 Repair&Maintenance Services and/or Supplies Siemens c/o Jensen Instrument Co. 30227 902.98 Electrical/Electronic Equipment,Parts&Repairs Siemens Water Technologies Corp. 30065 1,297.22 Repair&Maintenance Services and/or Supplies Siemens Water Technologies Corp. 30228 565.54 Repair&Maintenance Services and/or Supplies Skalar,Inc. 30229 995.00 Laboratory Services&Supplies Soil&Plant Laboratory Inc 30066 798.00 Outside Laboratory Services Southern California Edison 29970 233,125.62 Utilities Southland Restorations,Inc. 30067 6,015.00 Repair&Maintenance Services and/or Supplies Southwest Scientific,Inc. 30230 487.40 Laboratory Services&Supplies Stanley Steamer International,Inc. 30068 1,200.00 Janitor&Household Service&Supplies Stanley Steamer International,Inc. 30231 2,000.00 Janitor&Household Service&Supplies Staples 30069 2,086.69 Office Supplies Stephen Patrick Myers 30076 310.00 Miscellaneous Pool Services Summit Steel 30070 1,073.36 Repair&Maintenance Services and/or Supplies Summit Steel 30232 1,132.86 Repair&Maintenance Services and/or Supplies Super Chem Corporation 30233 1,444.74 Repair&Maintenance Services and/or Supplies Teledyne ISCO c/o MRC Technologies 30234 2,674.50 Repair&Maintenance Services and/or Supplies Terra Renewal,L.L.C. 30108 29,044.00 Grit&Screenings Disposal TestAmerica Ontario 30071 474.00 Laboratory Services&Supplies TestAmerica Ontario 30235 108.00 Laboratory Services&Supplies The Light Brigade,Inc. 30072 4,500.00 Professional Organizations Meeting/Training/Memberships The Orange County Register 30043 2,240.00 Notices&Ads The Wackenhut Corporation 30248 14,149.48 Safety,Security,Health Equipment,Supplies,and Services The Walking Man,Inc. 30236 375.00 Miscellaneous Services Think Services,Inc.DBA HDI 30237 1,495.00 Professional Organizations Meeting/Training/Membership Thompson Industrial Supply,Inc. 30073 4,105.00 Repair&Maintenance Services and/or Supplies Thompson Industrial Supply,Inc. 30238 3,544.77 Repair&Maintenance Services and/or Supplies Tiano Construction 30074 11,852.00 Facilities,Maintenance,Services&Supplies Time Warner Communications 30239 51.98 Telecommunications Tina D.Seybert 30097 277.72 Meeting/Training Expense Reimbursement Tom B.Meregillano 30095 379.40 Meeting/Training Expense Reimbursement Tony's Lock&Safe Service&Sales 30075 210.82 Repair&Maintenance Services and/or Supplies Total-Western,Inc. 30077 13,075.00 Repair&Maintenance Services and/or Supplies Transcat 30078 215.55 Electrical/Electronic Equipment,Parts&Repairs Truck&Auto Supply,Inc. 30079 59.95 Autos,Trucks&Marine Equipment,Parts,Accessories&Services TW Telecom Holdings,Inc. 30240 3,803.12 Telecommunications Ultra Scientific 30080 40.95 Laboratory Services&Supplies Union Bank of California 30081 2,952.28 Banking Services United Parcel Service 30082 1,406.90 Freight Services United Parcel Service 30241 96.27 Freight Services United States Postal Service 30242 5,000.00 Postage US Equipment Co.,Inc. 30243 959.00 Repair&Maintenance Services and/or Supplies US Peroxide,L.L.C. 30083 22,553.29 Chemicals,Water/WastewaterTreatment US Peroxide,L.L.C. 30109 45,006.60 Chemicals,Water/WastewaterTreatment EXHIBIT B fin/210/Ic Page 6 of 7 5/12/2010 Claims Paid From 04/16/10 to 04/30/10 Vendor Warrant No. Amount Description Vapex Products,Inc. 30084 928.50 Electrical/Electronic Equipment,Parts&Repairs Vapex Products,Inc. 30244 15,051.30 Electrical/Electronic Equipment,Parts&Repairs Verizon California 30085 50.15 Telecommunications Verne's Plumbing 30086 2,952.50 Plumbing Services&Supplies Verne's Plumbing 30245 1,177.50 Plumbing Services&Supplies Vision Financial Corporation 30246 2,191.56 Employee Voluntary Benefits Vladimir A.Kogan 30094 125.00 Meeting/Training Expense Reimbursement Voided Check 30110 - - Vortex Corp. 30087 3,958.00 Repair&Maintenance Services and/or Supplies VWR Scientific Products 30088 1,013.12 Laboratory Services&Supplies VWR Scientific Products 30247 3,243.78 Laboratory Services&Supplies Water Environment Federation 30089 217.00 Professional Organizations Meeting/Training/Memberships Water Environment Federation 30249 910.00 Professional Organizations Meeting/Training/Memberships Waxie Sanitary Supply 30250 1,560.83 Janitor&Household Service&Supplies Western Analytical Laboratories,Inc. 30090 2,025.00 Outside Laboratory Services Western Society of Malacologists 30251 20.00 Professional Organizations Meeting/Training/Memberships Weston Solutions,Inc. 30252 1,050.00 Laboratory Services&Supplies Workforce Software,Inc. 30253 21,300.00 Computer Applications and Services WorldatWork 30091 235.00 Professional Organization&Meeting/Training Registration Xerox Corporation 30254 20,045.34 Computers,Software/Hardware&Managed Services 4X Diagnostics,L.L.C. 30093 13,200.00 Professional Services Total Accounts Payable-Warrants $ 3,795,047.06 Payroll Disbursements Employee Paychecks 44478 - 44527 $ 105,039.56 Biweekly Payroll(04/21/10) Employee Paychecks 44528 - 44530 49,364.74 Interim Payroll-Emerg.Leave Payout&Retiremt./Leave Payout(04/16/10&04/22/10) Employee Paychecks 44531 - 44558 4,648.00 Interim Payroll-ARBA(04/30/10) Employee Paycheck 44559 - 44559 1,609.70 Interim Payroll-Emergency Leave Payout(04/28/10) Direct Deposit Statements 186686-187253 1,396,970.83 Biweekly Payroll(04/21/10) Direct Deposit Statements 187254 -187360 17,359.00 Interim Payroll-ARBA(04/30/10) Total Payroll Disbursements $ 1,574,991.83 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 791,154.74 Biweekly Payroll(04/21/10) Kiewit Finance Group 3,282,169.00 Construction Progress Payment Re Job P1-102(04/29/10) Total Wire Transfer Payments $ 4,073,323.74 Total Claims Paid 04/16/10-04/30/10 $ 9,443,362.63 EXHIBIT B fini210nc Page 7 of 7 5n2/2010 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Jim Burror, Supervisor GENERAL MANAGER'S RECOMMENDATION Approve an Out of Service Area Service Agreement with the Cities of La Habra and Whittier to accept sewage flow from 10905 Valley Home Avenue in Whittier, in a form approved by General Counsel. SUMMARY The cities of La Habra and Whittier have requested that the Orange County Sanitation District (Sanitation District) allow the property located at 10905 Valley Home Avenue in the City of Whittier to connect to a City of La Habra sewer, in Valley Home Avenue, that is tributary to the Sanitation District. The property is in receivership due to health and safety issues including a failed septic tank. The Valley Home sewer is the only sewer in the vicinity that can provide sewer service to the property. Acting as the local sewer service provider, the City of La Habra will allow the property to connect to its local sewer. The Sanitation District would bill the City of Whittier for the Sanitation District's annexation, connection, and user fees. In turn, the City of Whittier would bill the property owner. The property is also located within the County Sanitation District of Los Angeles No. 18 (LACSD No.18). The agreement will allow LACSD No. 18 to assume the role of the City of Whittier, if it chooses in the future. PRIOR COMMITTEE/BOARD ACTIONS None Form No.DW-102 Agenda Report—Board Revised: 12/06/06 Page 1 ADDITIONAL INFORMATION The area included in this Agreement is included within an area eligible for the Sanitation District's regional sewer service via Resolution 99-05. The area meets the requirements in Resolution 99-05 and all conditions of the resolution have been met. Resolution 99-05 identifies four conditions that this development needed to meet: 1. Surface water from the territory would naturally drain into Orange County. 2. The Sanitation District's member agency affected by a proposed service agreement, or the development related thereto, must be consulted and its input considered, prior to the proposed Agreement being finalized and presented to the Board. 3. A local government agency executes the Agreement providing for sewerage services and for payment of, as established by the Board at the time of approval, or as amended from time-to-time, for said service. 4. The local land use, sewer, or water authority agrees to require connections to the Sanitation District or other sewage treatment systems, and discourage on-site disposal systems. From discussions with the County Sanitation District of Los Angeles staff, it is believed that several other properties along Valley Home Avenue in Los Angeles County are connected illegally to the sewer. The agreement also requires the City of La Habra to inspect the sewer and report their findings to the Sanitation District within two years of executing the agreement. This Agreement complies with authority levels of the Sanitation District's Delegation of Authority. Date of Approval Contract Amount Continaencv N/A N/A N/A JB:sa:gc H:\dept\agenda\Board Agenda Reports\2010 Board Agenda Reports\05\Valley Home OASA.docx Form No.DW-102 Agenda Report—Board Revised: 12/06/06 Page 2 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Jim Herberg, Director of Engineering GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to Cooperative Projects Grants Program Contract No. 0502 with the City of Newport Beach, providing for reallocation of grant funds to other tasks within Contract No. 502, with no additional funding, in a form approved by General Counsel. SUMMARY The Cooperative Project Grants Program (Program) provides funds to local agencies for projects that reduce or eliminate inflow and infiltration (1/1) to the sewer collection system. The City of Newport Beach (City) requests Amendment No. 2 to Cooperative Projects Grants Program Contract No. 0502 (Contract No. 502) to reallocate project costs to flow monitoring and City's direct costs, as identified in "Revised Exhibit B" of Contract No. 502, without an increase in total project grant funds. This is the final outstanding grant remaining in the Cooperative Projects Grants Program. PRIOR COMMITTEE/BOARD ACTIONS April 2008 —Approve Amendment No. 1 to Cooperative Projects Grants Program Contract No. 0502 with the City of Newport Beach, providing for an 18-month time extension with no expanded scope of work, and no increase of grant funding. May 2006 —Approved grant funds for Cooperative Projects Grants Program Contract No. 0502 with the City of Newport Beach, for a total amount not to exceed $322,710. ADDITIONAL INFORMATION Cooperative Projects Grants are paid to local agencies on a reimbursement basis after project completion. The total amount of grant reimbursements provided to member agencies since 1999 through the Program is approximately $23.1 million. Form No.DW-102.2 Revised: 01/11/2010 Page 1 City of Newport Beach The City has been identified as having a significant inflow and infiltration (1/1) problem by the Sanitation District's long-term flow monitoring efforts. Contract No. 502 consisted of updating the City Sewer Master Plan, and providing for a capital improvement and 1/1 reduction plan to minimize flow into the City's sewer system. As part of this effort, wet-weather flow monitoring, closed-circuit television and condition assessment of City sewers were conducted. The project is now completed. An amendment to the contract is required to account for actual costs incurred. Total grant funds paid by the Sanitation District will remain unchanged. To redistribute the actual costs, the City is requesting that $76,463 originally allocated to closed-circuit television, surveying, manhole plugging, administrative costs, and consultant's direct labor be reallocated to flow monitoring and City's direct labor costs. The flow monitoring was originally estimated at $69,000, but actual expenditures were $128,857. The Assistant City Engineer was originally estimated at $5,774, but actual expenditures were $22,380. Sanitation District staff is recommending that grant funds under Contract No. 502 be reallocated to increase consultant's flow monitoring expenses and City's direct labor costs to account for the actual expended costs. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted under the Joint Operating Budget (Division 740) for FY 09/10. Date of Approval Contract Amount Contingency N/A N/A N/A AA:sa H:\dept\agenda\Board Agenda Reports\2010 Board Agenda Reports\05\Item 5.CoOp Newport Beach.docx Form No.DW-102.2 Revised: 01/11/2010 Page 2 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering GENERAL MANAGER'S RECOMMENDATION 1. Approve an Agreement with Irvine Ranch Water District to transfer the Orange Park Acres area from the Consolidated Revenue Area to Revenue Area 14; and, 2. Authorize a $274,681.24 credit to Irvine Ranch Water District for past capacity and annexation fees collected by the Orange County Sanitation District in the area transferred to Revenue Area 14, in a form approved by General Counsel. SUMMARY Irvine Ranch Water District (IRWD) requests that the area known as Orange Park Acres (OPA) within the City of Orange's Sphere of Influence be moved into the Revenue Area 14 (RA14). The area is residential, located within unincorporated County of Orange and the City of Orange, and is encompassed by Santiago Creek to the north, Jamboree Road to the east, Chapman Avenue to the south, and Rancho Santiago Boulevard to the west. See attached Exhibit A. IRWD wishes to provide local sewer service in this area. They have provided water service in the area since purchasing the OPA Mutual Water Company in 2008. There are approximately 300 parcels in the area to be transferred. The wastewater from the area ultimately flows into Orange County Sanitation District (Sanitation District) trunk facilities. The Agreement includes provisions for the Sanitation District to bill IRWD for current and future flows as properties are connected to the sewer. Annexation and connection fees previously collected by the Sanitation District will be transferred to IRWD within 90 days of the effective date of the Agreement. The total fee amount is approximately $274,681.24. PRIOR COMMITTEE/BOARD ACTIONS May 2009 - Approved resolution initiating the annexation of the remaining areas located in the City of Orange into the Sanitation District's Consolidated Revenue Area (CRA). Form No.DW-102 Revised:01/11/10 Page 1 ADDITIONAL INFORMATION This transfer is the final action necessary to allow for sewer services to be brought to the area as requested by the residents. The process has taken several years and included negotiations with staff from the County of Orange, City of Orange, Orange County Local Agency Formation Commission (LAFCO), IRWD, and the Sanitation District. The Sanitation District annexed the area in 2008 after the City of Orange and IRWD developed a plan to provide sewerage services to the area through IRWD. Until that plan was developed, the City of Orange was providing local sewer services. Under that plan, the City of Orange would request that individual properties be annexed to the Sanitation District for sewer service. The plan to allow IRWD to provide sewer services in the area allowed for the entire area to be annexed into the Sanitation District. It also avoided individual property annexation processing that can cost as much as $10,000 per annexation. A small portion of the area is still in the annexation process. The Sanitation District has applied for and is processing the Rancho Santiago Annexation through LAFCO. The public hearing was held on May 12, 2010. The annexation was not contested. The Sanitation District and LAFCO staffs have been working with the residents in this area for about a year to complete the annexation and do not anticipate any challenges. Wastewater flows from the OPA Service Area shall be included in RA14 flows to the Sanitation District for purposes of determining IRWD's funding obligations for the RA14 share of the Sanitation District's CORF and operation and maintenance costs in accordance with the RA14 Agreements. This is provided that the area is not subject to the RA14 Agreement's highest four months adjustment. In order to calculate the OPA Service Area flow to be added to RA14 flow, the Sanitation District shall multiply the acreage for the lots connected to the OPA Service Area sewer system by a factor of 350 gallons per day per dwelling unit (Stantec 2009 OPA Sub-Area Master Plan, Low & Estate Density Residential). CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. ATTACHMENT Exhibit A WA:sa:gc H:\dept\agenda\Board Agenda Reports\2010 Board Agenda Reports\05\Item 6.IRWD OPA.docx Form No.DW-102 Revised:01/11/10 Page 2 Exhibit A PARKE JOSHUATREE LEwIS C TAFT R MABURY �u ww GROVEWOOD-"l Q t! V v i OAK -— N O v HIGHPOINTco SANTIAGO SYCAMORE GLEN Z � �„+ i.•�•�•I N �- _ 5 \PC'OGPN N A� 9 .5 ,N NC\P RPy CLARK m z �D ?p�t-�� ��1 NV SPN suPN � �#. G o z O 10 P VILLA PARK 0tjC\N I N At4DPLL�,��•,•, �I R �• �'� �"-A_�G VPLE ORE E- - ..•l�` w eVs\ CRE N a ,I Z ! aQ ' w G N ALBYN ~ O R.Cn U � z Ecio TRIAN _ P O I O r o ebIHTI'l� �� ♦ Z U� , � 1641�y'j'SS,T BOND <1Q• r� J �t Q Q7p p0� i• z c=.> CAMBRIA OP GPMQVS WRANGLER �9.c PI PINE' 0APp4E O _ C yvMgAl a • D w 2�� BR\ARCREST PALMAR cl, Q �<< D . �� CEDAR CREEK LLLLLi Q E` -p P r RYALS dJP J� 00 2F D CENTER = G\NG�O W/ 0 p P �� 10 N� O < R OfI v YPO/NT CANYON VIEW S O TI O 0 PHEASANT E \ ?F MBERLAND O Legend N —•—•—� Revenue Area 14 Service Boundary W E 7r 0 1,800 3,600 Feet S BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 7 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering GENERAL MANAGER'S RECOMMENDATION Approve Flow Accommodation Agreement with County Sanitation District No. 18 of Los Angeles County from June 8, 2010 to June 7, 2011, incorporating by reference the terms of an existing 50-year Agreement scheduled to expire, in a form approved by General Counsel. SUMMARY In 1960, the Orange County Sanitation District (Sanitation District) entered into a Flow Accommodation Agreement with County Sanitation District No. 18 of Los Angeles County (LACSD No. 18), governing the circumstances by which flow from one District could be discharged into the sewers of the adjacent District. The Flow Accommodation Agreement expires June 8, 2010, and governs the procedures by which fees for these isolated areas along the border are exchanged. The Sanitation District staff is continuing the process of negotiating a new long term Agreement. This new Agreement will update the areas included in the Agreement and incorporate current Ordinances, fees, and accounting procedures. There are issues slowing down the completion of a new long-term Agreement. The first is that LACSD No. 18 must convert to a parcel-based billing system for the area. The second is developing a method that allows each agency to be more active in planned developments that could impact sewer capacity. PRIOR COMMITTEE/BOARD ACTIONS June 1960 - Approved Resolution No. 845-3 approving the execution of the Agreement with LACSD No. 18 for exchange of sewer services. Form No.DW-102 Revised:01/11/10 Page 1 ADDITIONAL INFORMATION The boundary between Los Angeles and Orange Counties follows a stair step pattern. This results in areas on the east side of Coyote Creek in Los Angeles County having wastewater flowing to sewers in the Sanitation District service area. This also results in areas on the west side of Coyote Creek in Orange County having wastewater flowing to sewers in the LACSD No.18 service area. Today there is more wastewater flow entering the Sanitation District's system than exiting the Sanitation District's system. The amount of money collected from LACSD was $26,490.08 in Fiscal Year 2009-10. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. ATTACHMENT Exhibit WA:sa H:\dept\agenda\Board Agenda Reports\2010 Board Agenda Reports\05\LACSD 18 Extension.docx Form No.DW-102 Revised:01/11/10 Page 2 Exhibit , N i W E Rosecrans Ave. s Los Angeles County i� County of Orange _ Malvern Ave. =� Artesia Blvd. Legend - - - Coyote Creek ® Wastewater Flows to Los Angeles County County Boundary ® Wastewater Flows to County of Orange Buena Park 0 County of Orange 0 2,900 5,800 0 Fullerton 0 La Habra Feet BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 8 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering GENERAL MANAGER'S RECOMMENDATION Approve Flow Accommodation Agreement with County Sanitation District No. 19 of Los Angeles County from July 13, 2010 to July 12, 2011, incorporating by reference the terms of an existing 50-year Agreement scheduled to expire, in a form approved by General Counsel. SUMMARY In 1960, the Orange County Sanitation District (Sanitation District) entered into a Flow Accommodation Agreement with County Sanitation District No. 19 of Los Angeles County (LACSD No. 19), governing the circumstances by which flow from one District could be discharged into the sewers of the adjacent District. The Flow Accommodation Agreement expires July 13, 2010, and governs the procedures by which fees for these isolated areas along the border are exchanged. The Sanitation District staff is continuing the process of negotiating a new Agreement. This new Agreement will update the areas included in the Agreement and incorporate current Ordinances, fees, and accounting procedures. There are issues slowing down the completion of a new long-term Agreement. The first is that LACSD No. 19 must convert to a parcel-based billing system for the area. The second is developing a method that allows each agency to be more active in planned developments that could impact sewer capacity. PRIOR COMMITTEE/BOARD ACTIONS July 1960 - Approved Resolution No. 866-3 approving the execution of the Agreement with LACSD No. 19 for exchange of sewer services. Form No.DW-102 Revised:01/11/10 Page 1 ADDITIONAL INFORMATION The boundary between Los Angeles and Orange Counties follows a stair step pattern. This results in areas on the east side of Coyote Creek in Los Angeles County having wastewater flowing to sewers in the Sanitation District service area. This also results in areas on the west side of Coyote Creek in Orange County having wastewater flowing to sewers in the LACSD No. 19 service area. Today there is more wastewater flow entering the Sanitation District's system than exiting the Sanitation District's system. The amount of money collected from LACSD No. 19 was $21,290.85 in Fiscal Year 2009-10. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. ATTACHMENT Exhibit WA:sa H:\dept\agenda\Board Agenda Reports\2010 Board Agenda Reports\05\LACSD 19 Extension.docx Form No.DW-102 Revised:01/11/10 Page 2 Exhibit ® Wastewater Flows to Los Angeles County Artesia Blcl. ® Wastewater Flows to Orange County i Los Angeles County Legend Orz ngethorpe Ave. — — - Coyote Creek — — - Los Alamitos Channel I County Boundary 0 Buena Park La Palma Ave. County of Orange Cypress Garden Grove ! Q La Palma °o i c Los Alamitos Lincoln Ave. Y --� __ Seal Beach N � 3 m 0 5,250 10,500 I Feet I Ball Rd. N �' I . Cerritos Ave._J_ > --�. W E � m N I s ° Katella Ave. Q o County of Orange m s � m c BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 05/26/10 AGENDA REPORT Item Number Item Number 9 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Approve the Sanitation District's policy on Continuing Compliance with Tax Law: Orange County Sanitation District Wastewater Revenue Obligations, Series 2010A (Federally Taxable Build America Bonds). SUMMARY The attached management policy is intended to ensure compliance with tax law, and to ensure full and timely payment of the interest rate subsidy from the Federal government. This written policy specifies who is responsible for creating and maintaining records and what process will be followed if there is an interruption in receipt of the interest rate subsidy. This is intended to serve as a summary of policies and procedures for the Orange County Sanitation District Wastewater Revenue Obligations, Series 2010A (Federally Taxable Build America Bonds) (the "Revenue Obligations"). Due to the strict compliance guidelines and the potential financial impact on the District if the subsidy is not received, the Revenue Obligations should be treated as an issue separate from any other bonds of the District. Pursuant to this policy, each requirement outlined will be satisfied with respect to the Revenue Obligations and the portion of the property financed with such obligations on a stand-alone basis. PRIOR COMMITTEE/BOARD ACTIONS April 28, 2010 - Adopted Resolution No. OCSD 10-05, a Resolution of the Board of Directors of the Orange County Sanitation District authorizing the execution and delivery by the District of an Installment Purchase Agreement, Trust Agreement, and Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Certificates of Participation to be referred to as Wastewater Revenue Obligations — Series 2010A, and authorized the execution and delivery of such Revenue Obligations in an aggregate amount of not to exceed $80,000,000. ADDITIONAL INFORMATION N/A Form No.DW-102 Revised:01/11/10 Page 1 CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENT 1. Management Policy JDR:LT:MW Form No.DW-102 Revised:01/11/10 Page 2 t R T T 7 O FINANCE DEPARTMENT POLICY AND PROCEDURE �w i F � � Tq iX NV Subject: Continuing Compliance Index: Finance Administration with Tax Law: OCSD Number: 201-3-3 Wastewater Revenue Obligations, Series 2010A (Federally Taxable Build America Bonds) Effective Date: May 26, 2010 Prepared by: Financial Management Supersedes: N/A Approved By: Doug Davert Board Chair 1.0 PURPOSE: The following management policy is intended to ensure compliance with tax law, and to ensure full and timely payment of the interest rate subsidy from the Federal government. This written policy specifies who is responsible for creating and maintaining records and what process will be followed if there is an interruption in receipt of the interest rate subsidy. This is intended to serve as a summary of policies and procedures for the Orange County Sanitation District Wastewater Revenue Obligations, Series 2010A (Federally Taxable Build America Bonds) (the "Revenue Obligations"). This policy does not supersede, limit or contravene any representations, statements or covenants of the District contained in the bond documents, including the tax certificate, related to any issuance of Revenue Obligations. Due to the strict compliance guidelines and the potential financial impact on the District if the subsidy is not received, the Revenue Obligations should be treated as an issue separate from any other bonds of the District. Pursuant to this policy, each requirement outlined below will be satisfied with respect to the Revenue Obligations and the portion of the property financed with such obligations on a stand-alone basis. Page 1 of 6 2.0 ORGANIZATIONS AFFECTED: Financial Management, the Internal Revenue Service, General Counsel, Bond Counsel; U.S. Bank- bond trustee, bond rating agencies, financial advisors, and external independent auditors. 3.0 REFERENCES: 3.1 Memorandum from Fulbright & Jaworski L.L.P. for further information and requirements in connection with the Revenue Obligations (attached as Exhibit A). 4.0 POLICY: 4.1 Initial Filing - The District will file a Form 8038-B with the IRS at least 30 days before the first Form 8038-CP is filed, and it will be filed by the 15th day of the second month after the calendar quarter in which the Revenue Obligations are executed and delivered. 4.1.1 The initial Form 8038-B will be prepared on behalf of the District by Bond Counsel, Fulbright&Jaworski L.L.P, for the District's review and execution prior to its submission to the Internal Revenue Service. 4.1.2 The execution and filling of the initial Form 8038-CP with the Internal Revenue Service will be completed by the Director of Finance and Administrative Services or Controller of the District. 4.2 Subsequent Filings-To receive the subsidy payments from the United States government, the District will file a Form 8038-CP for each interest payment date (twice a year). 4.2.1 The Form 8038-CP for any interest payment date will be filed no earlier than 90 days prior to that interest payment date and no later than 45 days prior to that interest payment date. 4.2.2 The filings will be prepared on behalf of the District by U.S. Bank National Association, as the District's initial agent for the purpose of preparing each Form 8038-CP for execution and delivery by the Director of Finance and Administrative Services of the District in accordance with the Tax Reporting Agent Agreement between U.S. Bank National Association and the District, and of filing of the executed form with the Internal Revenue Service. Page 2 of 6 4.2.3 The filing of the executed Forms 8038-CP with the Internal Revenue Service will be completed by the Director of Finance and Administrative Services or Controller of the District. 4.3 Spending Requirements- For the Revenue Obligations to produce the desired tax credit, it is necessary that all of the sale proceeds any amount (not be in excess of 2% of the sale proceeds) allocated to the payment of costs of issuance of the Revenue Obligations, as well as any investment proceeds of the Revenue Obligations (collectively, the "available project proceeds of the Revenue Obligations") be allocated to capital expenditures under an adopted allocation methodology. 4.3.1 The District has a capital plan that identifies its expected capital projects and estimated capital expenditures in each year. Capital expenditures under general federal income tax principles include costs to acquire, construct, or improve land, buildings, and equipment. Capital expenditures do not include current operating, repair or maintenance costs. In order for the Revenue Obligations to produce the desired tax credit, it also is necessary that certain restrictions on private business use of the available project proceeds or of the property financed thereby are not violated. 4.3.2 The District will maintain detailed records of the capital expenditures to which it intends to allocate available project proceeds of the Revenue Obligations, and will retain all necessary documents evidencing the fact and purpose of such expenditures, to demonstrate that the available project proceeds of the Revenue Obligations meet these requirements. 4.3.3 The District also will maintain records, including any relevant contracts or other documents, to show that any use of the facilities to which such available project proceeds of the Revenue Obligations are allocated by any person other than the District does not violate the private business use test. 4.4 Allocation Requirements- The allocation of available project proceeds to capital expenditures will be made under a reasonable, consistently applied allocation methodology. 4.4.1 The final allocation will be made in writing and retained with the books and records of the District. Page 3 of 6 4.4.2 Such allocation will be made no later than the first to occur of (i) eighteen months following the completion of construction or acquisition of the projects financed with available project proceeds of the Revenue Obligations or(ii)the first Computation Date for arbitrage rebate (not later than the fifth anniversary of the issuance of the Revenue Obligations). 4.4.3 As funds from different sources may be allocated to capital expenditures for the same project, the District will expressly adopt and utilize on a consistent basis a reasonable method for the allocation of capital expenditures among the available project proceeds of the Revenue Obligations and each of the other such sources, which may include: a specific tracing method; a gross proceeds spent first method; a first-in, first-out method; or a ratable allocation method. 4.4.4 The District will retain records that evidence in detail the interim investments pending allocation to capital expenditures, and the allocation to capital expenditures, of the available project proceeds of the Revenue Obligations to enable it to make the final allocation. 4.4.5 The District will adopt its allocation methodology in sufficient time to enable it to make the final allocation as of the required date set forth above. 4.5 Capitalized Interest- Available project proceeds of the Revenue Obligations may be allocated to the payment of interest expense on obligations of the District allocated to capital expenditures for property, but only to the extent that such interest is chargeable to the capital account for that property. 4.5.1 Available project proceeds may be allocated to a portion of the interest on an obligation of the District if: 4.5.1.1 proceeds of that obligation have been allocated to a capital expenditure for a unit of property; 4.5.1.2 the interest is allocable (on a ratable basis) to the cost of carrying the proceeds allocated to that capital expenditure; and, 4.5.1.3 that interest accrued during the period commencing with the date of such capital expenditure (or with such earlier date as may be sanctioned under Revenue Ruling 81-23 of the Internal Revenue Service) and concluding with the readiness for service of that unit of property. Page 4 of 6 4.5.2 To the extent that the District expects to allocate available project proceeds of the 2010 Bonds to capitalized interest for a project, the District will maintain detailed records that identify each such project and the interest on obligations delivered for that project to which available project proceeds are to be allocated, and for each such project will track the date and amount of each capital expenditure financed by such obligation, so that the portion of the interest on that obligation that is capitalized and so is eligible for payment out of available project proceeds of the Revenue Obligations may be determined and such eligibility may be demonstrated. 4.6 Investment Earnings- Any amounts earned on the investment or reinvestment of proceeds of the Revenue Obligations, will be retained and used for capital expenditures, and will not be transferred to the debt service fund to be used for debt service on the Revenue Obligations (this is different from the normal use of investment proceeds of a tax-exempt financing and will be carefully monitored). 4.7 Post-Sale Secondary Market Transaction Tracking Requirements- The District's contracted financial advisory will track secondary market trades of the Series Revenue Obligations from and after the date of sale of the Revenue Obligations to the extent the District determines, or is advised by its bond counsel, is appropriate. 4.8 Regulatory Efforts- The interest rate subsidy is subject to offset and withholding due to counterclaims by the federal government. Thus, in addition to meeting the requirements described above, the District will take all action to maintain compliance with all federal regulatory requirements to minimize the risk that non-compliance could result in delayed or suspended payment of the interest rate subsidy. 4.9 Ongoing Compliance- The District designates Director of Finance and Administrative Services and Controller of the District as the appointed officers to create and maintain all records necessary to evidence compliance with all requirements for continued receipt of the interest rate subsidy and all tax requirements (including limitations on private use) for the Revenue Obligations. 4.9.1 The Director of Finance and Administrative Services and Controller of the District are also each designated to monitor such ongoing compliance and to take all corrective actions necessary should a potential violation of any of the requirements be detected. Page 5 of 6 4.9.2 Upon detection of a potential violation of any of the requirements, such officers will consult with bond counsel having a national reputation in the field of municipal finance with respect to the appropriate corrective action to be taken. 4.9.3 If the District determines that a violation has occurred, the District will take appropriate actions related to such noncompliance, including, if appropriate, any remedial action described under applicable Treasury Regulations. 4.10 Rebates- The District will perform or cause to be performed all arbitrage rebate and yield compliance calculations that may be required to be made from time to time with respect to the Revenue Obligations. 4.10.1 To the extent deemed necessary and advisable by any of the Director of Finance and Administrative Services or Controller of the District, the District will retain independent arbitrage rebate consultants to assist in perform rebate and yield reduction payment calculations that may be required to be made from time to time with respect to the Revenue Obligations. Page 6 of 6 Exhibit A Fulbright & Jaworski I.I.p. A Registered Limited Liability Partnership 555 South Flower Street Forty-First Floor Los Angeles, California 90071 www.fulbright.com MEMORANDUM TO: Lorenzo Tyner, Director of Finance and Administrative Services CC: Victor Hsu Russell C. Trice FROM: Richard L. Kornblith DATE: May 13, 2010 RE: Certain U.S. federal income tax requirements with respect to Build America Bonds The Orange County Sanitation District (the "District") intends to cause the execution and delivery of that certain Installment Purchase Agreement, dated as of May 1, 2010 (the "Installment Purchase Agreement"), by and between the District and the Orange County Sanitation District Financing Corporation (the "Corporation"); and further intends to execute and deliver that certain Trust Agreement, also dated May 1, 2010 (the "Trust Agreement"), by and among U.S. Bank National Association, as trustee (the "Trustee"), the Corporation and the District. Under the Installment Purchase Agreement, the District has sold to the Corporation the Project (as described therein) for a purchase price of$80,000,000 (the "Sale Price"), payable in a single payment on the date of execution and delivery of the Installment Purchase Agreement, and the District has purchased back the Project for an equal price (the "Installment Purchase Price") payable in periodic Installment Payments, each of which is characterized therein as comprising a Principal Component and an Interest Component: that sale/purchase-back transaction will be treated for federal income tax purposes as a secured amortizing borrowing. Pursuant to the Trust Agreement, subject to certain reserved rights, the Corporation will assign over to the Trustee the Installment Purchase Agreement; further pursuant to the Trust Agreement, the Corporation will syndicate the Installment Purchase Agreement through the execution and delivery of certain Wastewater Revenue Obligations, Series 2010A (Taxable Build America Bonds) (each, a "Revenue Obligation"), which are certificates of participation; the Corporation will apply the proceeds of that syndication to satisfy the obligation to pay the Sale Price of the Project. The assignment over of the Installment Purchase Agreement and its syndication through the initial offering of the Revenue Obligations in exchange for the payment over of the proceeds of that syndication as the payment of the Sale Price, all pursuant to the Installment Sale Agreement and the Trust Agreement, will be treated for federal income tax purposes as the issuance of the debt represented by the Installment Purchase Agreement. The sale of the Revenue Obligations of a stated redemption date by the Trustee will be treated for 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 2 federal income tax purposes as the sale of an undivided interest in that portion of the principal of the Installment Purchase Agreement maturing on that date, and of a ratable portion of the interest accruing from time to time on the Installment Purchase Agreement and allocable to such principal. In connection with the execution and delivery of the Installment Purchase Agreement, the District will elect to treat the Installment Purchase Agreement as a "build America bond" that is a"qualified bond," all as provided under sections 54AA(d) and 54AA(g) of the Internal Revenue Code of 1986 (the "Code"). As a result of these elections, the Interest Component of each Installment Purchase Agreement distributed to the respective holders of Revenue Obligations to which such payment is allocable will be includible in the gross income of those holders for federal income tax purposes, and, further, the District expects to receive direct subsidy payments from the U.S. Department of Treasury (the "U.S. Treasury") in the amount of 35% of each such Interest Component paid or becoming payable under the Installment Purchase Agreement. This memorandum provides an outline of certain U.S. federal income tax requirements with respect to the continued qualification of the Installment Purchase Agreement as a "build America bond" that is a"qualified bond." Note that for purposes of the following requirements, the execution, delivery and syndication of the Installment Purchase Agreement will be treated as an issuance separate from any other issuance of debt of the District. Thus, each requirement set forth below must be satisfied with respect to the Installment Purchase Agreement and the portion of the property financed with such certificate of participations on a stand-alone basis. 1 I. Requirements with respect to "Build America Bonds" Generally • Election: The District will elect to treat the Revenue Obligations as BABs. o When such election is made,by statute, that election is irrevocable. o As a result of such election, interest with respect to the Revenue Obligations will be included in the gross income of the certificateholders for federal income tax purposes. See Part II, below for a discussion of the additional election for "qualified bonds". ' Because of the identity of the Installment Purchase Agreement,or of particular payment obligations thereunder,to the Revenue Obligations, and of the similarity(from the point of view of the holder) of each Revenue Obligation to a municipal bond,and the convenience of customary terminology used in the municipal bond industry,we will adopt similar terminology. Henceforth, unless the context clearly indicates to the contrary, in this memorandum a reference to either of the Installment Purchase Agreement or the Revenue Obligations is intended to refer to or to the corresponding interest in the Installment Purchase Agreement. Thus, for example, a reference to "available project proceeds of the Revenue Obligations", to the investment or use of"gross proceeds of the Revenue Obligations', to the use of the property financed with"proceeds of the Revenue Obligations",to "interest on a Revenue Obligation" or to "principal of[or "maturity of] a Revenue Obligation", is intended rather to be a reference to the available project proceeds of, investment or use of gross proceeds of, use of property financed by, interest on or principal of the Installment Purchase Agreement,respectively. 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 3 • Tax-Exempt Bond Requirements: To be BABs, the Revenue Obligations must meet all of the requirements of tax-exempt bonds, as if they had been issued as tax-exempt bonds.2 They must not be private activity bonds and they must not be arbitrage bonds; they must also satisfy the other requirements applicable to tax-exempt bonds generally. • Net Premium: To be BABs, no maturity of the Revenue Obligations may have been issued with bond premium that exceeds 0.25% of the stated redemption price at maturity multiplied by the number of complete years to maturity. o If the exercise of an optional call of one or more maturities would reduce the yield on the Revenue Obligations, the net premium limitation would be calculated assuming the Revenue Obligations of each maturity will be called on the date that produces the lowest yield on the issue as a whole. o If each maturity of Revenue Obligations has been initially offered in a bona fide public offering, then the issue price of each Revenue Obligation of that maturity is determined as first price at which at least 10% of the Revenue Obligations of that maturity were actually sold. For this purpose, sales to bond houses, brokers or similar persons acting in the capacity of underwriters or wholesalers of the Revenue Obligations are disregarded. If the District determines that a maturity of the Revenue Obligations has been offered in a bona fide public offering, but that not 10% of that maturity was sold pursuant to that offering, then the issue price of that maturity may be determined based upon the reasonable expectations of the District on the sale date of the Revenue Obligations to the underwriter: in making that determination, the District may rely to the extent reasonable upon a written certification by the underwriter. If not all of a maturity of Revenue Obligations has been offered in a bona fide public offering, then the issue price of each Revenue Obligation of that maturity is determined based upon the aggregate amount paid by the initial purchaser(s) (other than banking firms, brokerage firms and similar persons) of Revenue Obligations of that maturity. o At the execution and delivery of the Revenue Obligations, the District will represent that the foregoing requirements were met. This representation will be based upon representations made to it by the initial purchasers of the Revenue Obligations; however, if the Internal Revenue Service (the "Service") were to successfully demonstrate that those representations were not truthful, and that in fact one or more of the Revenue Obligations was issued with bond premium in excess of the permitted amount, then that or those Revenue Obligations would not be BABs. For that reason, it is important that the District retain all records relating to the sale of the Revenue Obligations. See Part IV, below, regarding compliance monitoring. 2 These requirements are discussed in Part III of this memorandum. 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 4 II. Special Requirements with respect to Build America Bonds that are "Qualified Bonds" • Election: In addition to the election to treat the Revenue Obligations as BABs, the District will elected to treat the Revenue Obligations as BABs that are "qualified bonds". o In a certificate that it delivers at closing, the District will make the election to treat each of the Revenue Obligations not only as BABs but as "qualified bonds". Similar to the BABs election, the "qualified bond" election is irrevocable. o As a result of this election, the District will be allowed a refundable tax credit in the form of a "direct payment" from the U.S. Treasury in the amount of 35% of the interest payable on each Revenue Obligation on each interest payment date. The receipt of the direct payment by the District is lieu of a tax credit that would otherwise be available to the holder of the BAB. o Each direct payment is subject to reduction by offset against any other payment obligation of the District to the U.S. Treasury that may exist on the payment date. • Required Filings: To receive the subsidy payments from the U.S. government, the District must file a Form 8038-CP (Return for Credit Payments to Issuers of Qualified Bonds) for each interest payment date (i.e., twice a year). o The Forms 8038-CP must be filed no earlier than 90 days prior to each interest payment date and no later than 45 days prior to such interest payment date. o Special Counsel will not be making these filings for the District. Accordingly, it is critical that the District establish a system to assure that it makes timely filings with the U.S. Treasury in order to receive the subsidy payments. • Available Project Proceeds and Capital Expenditures; Allocations of Available Project Proceeds: In addition to the requirements for BABs discussed in Part I above, BABs that are "qualified bonds" must also satisfy certain additional special requirements. Most importantly, all of the proceeds from the sale of the Revenue Obligations (less proceeds allocated to the payment of costs of issuance), as well as any investment proceeds (collectively referred to as the "available project proceeds") must either be used to fund a "reasonably required reserve fund"or be allocated to capital expenditures under the allocation methodology adopted by the District in the manner described below. o General: Capital expenditures are costs of a type properly chargeable to a capital account under general federal income tax principles, including costs to acquire, construct or improve land, buildings, and equipment. Until further guidance is issued, available project proceeds of BABs should be allocated only to those expenditures that are chargeable to capital accounts for real or tangible personal property unless the District first has obtained the advice of Special Counsel that 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 5 an allocation of available project proceeds to expenditures chargeable to a capital account for intangible property will comply with the requirement. o Capital expenditures do not include maintenance, repair or operating expenses (such as payroll, supplies or other inventories) or any other expenditures not chargeable to capital account. Available project proceeds of the Revenue Obligations may not be allocated even to those special working capital expenditures (e.g., interest that is not chargeable to the capital account of an asset, start-up expenses and so on) to which proceeds of tax-exempt bonds of the District generally could generally be allocated. o Throughout the term of the Revenue Obligations any amounts earned on the investment or reinvestment of proceeds of the Revenue Obligations must be retained and used for capital expenditures, rather than used for debt service on the Revenue Obligations (as might be the typical use of such earnings in a tax-exempt bond financing). o Capitalized Interest: Available project proceeds of the Revenue Obligations may be allocated to the payment of interest on debt only if that interest is (or were the District to make a permitted election, would be) chargeable to a capital account. Before the District may allocate any available project proceeds of the Revenue Obligations to fund interest with respect to the Revenue Obligations or any other debt of the District (e.g., to fund "capitalized interest"), the District must determine whether, and to what extent, such interest is or may be properly charged to a capital account for a unit of real or tangible personal property. The rules for such allocations (which are established under sections 263A and 266 of the Internal Revenue Code, with a special rule under Revenue Ruling 81-23 for interest on certain municipal debt issued for specific projects) are complex and must be applied with great care; where there is any doubt, the District is advised to err on the side of not treating such interest as capitalizable. a. Generally, interest accruing on debt is chargeable to the capital account in respect of a unit of property (and therefore can be funded from proceeds of such debt as capitalized interest) only to the extent that proceeds of that debt have been expended during the production period of that unit. The production period of a unit of property concludes with the date on which that property is placed in service (i.e., is in a state of readiness for use for its intended purpose). Where proceeds of debt are held in an account (such as a project account) pending expenditure, the interest allocable to those proceeds generally is not capitalizable and so would not be able to be funded from available project proceeds of the Revenue Obligations. However, under the special rule established in Revenue Ruling 81-23, all interest with respect to the Revenue Obligations (or on other municipal debt) issued under bond documents that restrict the use of proceeds of such debt to the acquisition, construction or improvement of particular 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 6 projects may be treated as capitalizable from and after the date of execution and delivery to the extent that such interest is allocable to proceeds that have been or are to be allocated to the construction, etc., of units of property comprised by those projects, even though the proceeds of the debt may have not yet been expended. Therefore, such interest may be treated as capitalizable from the date of execution and delivery of the debt but (as noted above) only to the date on which that property is placed into service. b. For the purpose of determining the amount of interest that may be charged to a capital account with respect to any project financed with proceeds of the Revenue Obligations, the District may find the interest accounting methodology used by it for more general purposes (e.g., financial reporting)to be suitable; however, in any event the District should confirm with its accountants that the chosen method is appropriate, and then the District should apply that method consistently for all federal purposes. c. Ultimately, in order that the Revenue Obligations be "qualified bonds", the District must not allocate any proceeds of the Revenue Obligations to interest on debt unless it has determined under the foregoing principles that such interest is properly chargeable to a capital account for real or tangible personal property. o Allocation Methodology: The allocation of available project proceeds to expenditures (as well as to investment pending expenditure) must be made in accordance with a reasonable allocation methodology that is consistently applied for all purposes of federal income taxation. The final allocation must be made in writing, must be retained with the books and records of the District, and must be made not later than the first to occur of (i) eighteen months following the completion of construction or acquisition of the projects financed with proceeds of the Revenue Obligations or (ii) the first Computation Date for arbitrage rebate (not later than the fifth anniversary of the execution and delivery of the Revenue Obligations). a. If funds from different sources (including proceeds of the Revenue Obligations) are to be allocated to capital expenditures for the same project, then reasonable methodologies for such allocations include: (i) a specific tracing method (under which an expenditure is allocated specifically to the source against which the payment of such expenditure was drawn); (ii) a gross proceeds spent first method (under which proceeds of the Revenue Obligations (or any other bonds of the District) are allocated to the capital expenditures for that project before funds from any other source are allocated to capital expenditures for that project); (iii) a first-in, first-out method(under which the first funds available to the District for such purpose are allocated to capital expenditures for the 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 7 project, regardless of the source of such funds); or (iv) a ratable allocation method (under which each capital expenditure for a project is allocated among the funds from each source ratably in accordance with the aggregate amount of funds from each source applied to that project). b. The District may adopt its allocation methodology at any time prior to making the final allocation but, if it fails to adopt a different methodology then the specific tracing method will be deemed to have been adopted. Accordingly, we recommend that the District take care to apply (in a specific tracing sense) all of the available project proceeds of the Revenue Obligations to the payment or reimbursement of payments of capital expenditures, so that a failure or inability to adopt an allocation methodology other than specific tracing will not result in a deemed allocation of such available project proceeds to working capital or other impermissible expenditures; this will protect the District, while preserving the right of the District to adopt a different allocation methodology for its final allocations. o Reimbursement: Proceeds of the Revenue Obligations may be allocated to the reimbursement of capital expenditures paid in respect of a project before the execution and delivery of the Revenue Obligations without regard to the general allocation methodology adopted by the District for the available project proceeds of the Revenue Obligation proceeds (see above), but only if certain requirements are met. These requirements are similar to those for tax-exempt bonds generally. a. The District must adopt or have adopted an "official intent" to reimburse capital expenditures for that project not later than 60 days after the original expenditure was actually paid. b. An "official intent" may be made in any reasonable form (including a board resolution) and must include a general description of the project and the maximum principal amount of bonds expected to be issued. c. The reimbursement allocation must be made within 18 months of the later of the date the expenditure was paid or the date the project is placed in service (but in any event not later than 3 years from the date of expenditure). d. Generally, once a reimbursement allocation conforming to the rules has been made, the proceeds of the Revenue Obligations to which that allocation pertains are no longer treated as proceeds of the Revenue Obligations (or as available project proceeds). 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 8 • 2% Limitation on Proceeds Allocated Costs of Issuance: No more than 2% of the proceeds of the Revenue Obligations may be allocated to the payment of costs of execution and delivery of the Revenue Obligations (including initial purchasers' discount). As indicated above, proceeds of the Revenue Obligations that are so allocated to issuance costs are not included in"available project proceeds". • No Allocation of Available Project Proceeds to Prepay: No available project proceeds of"qualified bonds" may be allocated to the payment of interest on or principal of any other governmental obligation: that is, the allocation of available project proceeds of the Revenue Obligations to prepay other certificates of participation will disqualify the Revenue Obligations from being "qualified bonds". However, in limited instances an economic effect similar to a prepayment may be achieved through the allocation of available project proceeds of the Revenue Obligations to the reimbursement of certain capital expenditures initially financed with short-term debt.3 • Record-Keeping: The District will be required to maintain careful records evidencing compliance with these requirements. To satisfy these requirements, the District should also adopt and abide by a written policy that specifies by whom these records are to be created and maintained, by whom continuing compliance by the District with these requirements is to be monitored, and by whom and through what process action is to be taken should a potential violation of any of the requirements be detected. III. Requirements typically associated with Tax-Exempt Bonds As noted in Part I of this memorandum, the Revenue Obligations must satisfy certain requirements typically associated with tax-exempt bonds, such that interest with respect to the Revenue Obligations would be excludable from the income of the certificateholders if the District had not elected to treat the Revenue Obligations as taxable BABs. • Private Activity Bond Tests: Generally, interest on municipal obligations that are "private activity bonds" is not tax-exempt. "Private activity bonds" are bonds of an issue that satisfies both (1) the "private business use" test and (2) either the "private security test" or the "private payment test". In the case of the Revenue Obligations: o The "private business use" test is satisfied if more than 10%4 of the proceeds of the Revenue Obligations (or of the facilities financed with proceeds of the 3 Proceeds of"qualified bonds" may be used to reimburse certain capital expenditures paid or incurred on or after February 17, 2009, and to which proceeds of taxable or tax-exempt temporary short-term financing (e.g., bond anticipation notes, short-term bank loans, commercial paper) incurred on or after February 17, 2009,was allocated in anticipation of permanent financing. Such reimbursement may then be applied to retire the initial, anticipatory, financing. The District must not allocate any available project proceeds of the Revenue Obligations to the refinancing or reimbursement of any capital expenditures without first discussing this with Bond Counsel. 4 Note that the 10%limitations throughout the private business tests are decreased to 5%for certain private business uses that are unrelated or disproportionate to the governmental uses of the financed property. Also,to the extent that more than 5% of the proceeds of the Series 2010 Bonds are allocated to an output facility (other than a facility for 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 9 Revenue Obligations) are used in a trade or business of a nongovernmental person. a. Any activity by a person other than a natural person (e.g., use by a corporation) is treated as a trade or business. b. Use of financed property as a member of the general public is not considered private business use. c. The 10% limitation is cumulative and average: for each annual period, all private business use of property financed by the Revenue Obligations must be aggregated to determine the percentage private business use for that year; then, the annual percentages will be averaged over the "measurement period" for the issue, which extends from the date of execution and delivery of the Revenue Obligations until the final scheduled maturity of the issue (regardless of intervening redemptions). d. Private business use includes (but is not limited to) the following activities with respect to financed property: ownership, leasing, management under a nonqualifying management contract, certain sponsored research agreements, and other special legal entitlements. Further, in the case of electric or other"output facilities", private business use may be created by reason of contracts for the sale of output to nongovernmental persons. The District is an active issuer of tax-exempt debt that is governed by these principles; however, to the extent that the District has any question whether a particular arrangement or output contract might result in private business use, it should consult with its advisors to resolve such question. o The "private security"test is met if the payment of debt service on more than 10% of the issue is secured (directly or indirectly) by property used for a private business use or payments in respect of such property. The property need not be property financed with proceeds of the Revenue Obligations. o The "private payment" test is met if the payment of debt service on more than 10% of the issue is to be derived from payments in respect of property used for private business use. The property need not be property financed with proceeds of the Revenue Obligations. o The private activity bond tests are based on the reasonable expectations of the District at the time of execution and delivery; however, subsequent deliberate actions that result in satisfaction of the private business use test or the private loan test may also trigger treatment of the Revenue Obligations as private activity bonds that, for that reason, cannot be BABs. Unless remediated (if possible), the furnishing of water), the aggregate for each such outstanding tax-exempt bond issue of the lesser of its private business use amount or its private security or payment amount must not exceed$15 million. 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 10 such treatment may be made retroactive to the execution and delivery of the Revenue Obligations,with uncertain consequences. o Subsequent private business use (but not private security or payments, and not an allocation of available project proceeds other than to qualifying capital expenditures) that was not reasonably expected at the time of execution and delivery of the Revenue Obligations may sometimes be cured through certain remedial actions (including redemption or defeasance of a corresponding portion of the certificate of participations). It is not yet clear whether other violations of the tax requirements in respect of"qualified bonds" can or will be permitted to be remediated and, if so, what form such remedial action might take. • Non-Governmental Output Property Limitation: No more than the lesser of $5 million or 5% of the proceeds of the Revenue Obligations may be used for the acquisition of property that is "nongovernmental output property" (i.e., property that before the acquisition was used or held for use by any nongovernmental person in connection with an output facility other than a facility for the furnishing of water).5 • Private Loan Limitation: The District may not use more than 5% of the proceeds of the Revenue Obligations (with a cap of $5,000,000) to make or finance loans to nongovernmental persons. • Investment Arbitrage Restriction: "Gross proceeds" of the Revenue Obligations must not be invested at a yield that is materially higher than the yield of the Revenue Obligations, unless a"temporary period" exception applies. o Gross Proceeds include both sale and investment proceeds and also "replacement proceeds," which include amounts in the Debt Service Fund (including the sinking accounts)6 set aside for payment of debt service. o The yield of the Revenue Obligations is reduced by the expected direct subsidy payments. o Proceeds in the Series 2010A Electric System Fund may qualify for a three-year temporary period (i.e., such proceeds may be invested without restriction as to yield). To qualify, the District must expect to (1) spend at least 85% of net sale proceeds by the end of the three year period, (2) incur binding obligations to spend 5% of the net sale proceeds within six months, and (3) proceed with due diligence toward completion of the projects. "Net sale proceeds" refers to the gross proceeds from the sale of the Revenue Obligations (including the amount applied to the initial purchaser's discount or fees), net of the amount, if any, deposited into a reasonably required reserve or replacement fund. 5 Exceptions from this rule are provided under the statute. Prior to the allocation of proceeds of the Revenue Obligations to nongovernmental output property,such proposed allocation should be discussed with Bond Counsel. 6 Rules relating to the Debt Service Fund(including the sinking accounts)are discussed in more detail below. 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 11 o Although "replacement proceeds" are generally subject to yield restriction and rebate just as are sale or investment proceeds, amounts in a "bona fide debt service fund" generally qualify for a thirteen month temporary period for yield restriction and an exception to rebate. To qualify for such temporary period and rebate exception, amounts in the "bona fide debt service fund" must match annual debt service, and other than a reasonable carryover amount must be depleted each year. • Rebate Requirement: To the extent the District earns any arbitrage with respect to the Revenue Obligations (i.e., earnings on investment of gross proceeds that are in excess of the yield on the Revenue Obligations), the District must pay monies in an amount equal to such arbitrage amount to the federal government generally every five years, unless a "spending exception" applies. o Note that investment earnings in the Series 2010A Electric System Fund (i.e., the project fund) in excess of the yield on the Revenue Obligations during the temporary period described above will be included in the computation of rebate (i.e., the exception to yield restriction is not an exception to rebate). o Likewise, although the yield restriction rules allow investments not "materially higher" than the yield on the Revenue Obligations, any such earnings in excess of the yield on the Revenue Obligations are nevertheless included in the computation of rebate. o Although investment earnings as described above are included in the computation of rebate liability, in order that the Revenue Obligations may be "qualified bonds", those proceeds themselves are included in available project proceeds and so must be allocated to capital expenditures as described above. Thus, the rebate payment itself must be sourced from other than the investment proceeds or other available project proceeds of the Revenue Obligations. o As noted above, amounts in a "bona fide debt service fund" generally qualify for an exception to rebate. • Reasonably Required Reserve Fund: Any bond reserve fund for the Revenue Obligations cannot exceed the least of(1) 10% of the principal amount of the Revenue Obligations, (2) the maximum annual debt service on the Revenue Obligations, and (3) 125% of the average annual debt service on the Revenue Obligations; moreover, the fund must be required in order to market the Revenue Obligations at lower interest rates or a more favorable rating. o Amounts in a reasonably required reserve fund may be invested without restriction as to yield; however, earnings on the reasonably required reserve fund 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 12 that exceed the yield on such Revenue Obligations will be included in the computation of rebate, as described above. o As noted above, to the extent that investment earnings on the reasonably required reserve fund are available project proceeds, they must be allocated to capital expenditures. • No Hedge Bonds: If the Revenue Obligations are "hedge bonds" they must meet certain requirements. The Revenue Obligations will not be "hedge bonds" if (1) the District reasonably expects that at least 85% of the net sale proceeds of the Revenue Obligations will be used for governmental purposes within the 3-year period commencing on the date of execution and delivery, and(2) not more than 50% of the proceeds of the bonds are not invested in investments with a guaranteed yield for 4 years or more. • No Abusive Arbitrage Device: The District may not use the Revenue Obligations to exploit the difference between rates on subsidized and taxable bonds, and cannot overburden the bond market. o The market is considered overburdened if more bonds are issued than necessary or bonds remain outstanding longer than necessary. o As a general safe harbor, the weighted average maturity of the Revenue Obligations should not exceed 120% of the reasonably expected average life of the projects to be financed with the bonds. o The proceeds of the Revenue Obligations, plus any expected investment earnings on such amounts, should not exceed the amount expected to be needed for the projects. In making this determination, any gifts and donations pledged to the same projects must be taken into account. • Federal Guarantee: With certain exceptions, the payment of debt service on the Revenue Obligations may not be guaranteed (directly or indirectly) by the federal government, and no more than 5% of the proceeds may be (1)used to make federally guaranteed loans or(2) invested in federally insured deposits or accounts. o The receipt of the direct subsidy payments by the District from the U.S. Treasury will not cause the Revenue Obligations to be considered federally guaranteed. o The direct subsidy payments will not be pledged to the payment of debt service on the Revenue Obligations. • Information Reporting: The District must file a Form 8038-B with the IRS. o The Form 8038-B must be filed with the IRS at least 30 days before the first Form 8038-CP is filed, and must be filed by the 15th day of the second month after the calendar quarter in which the Revenue Obligations are issued. Since, as indicated 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 13 above, each Form 8038-CP must be filed at least 45 days before the desired direct subsidy payment, this means that to obtain a subsidy payment contemporaneous to the first payment of interest with respect to the Revenue Obligation the District must file the Form 8038-B at least 75 days before the first interest payment date. o The Form 8038-B will be completed based upon the representations made by the District and its financial advisors, signed by the District at closing, and filed immediately thereafter. o The Form 8038-B must include a complete debt service schedule for the Revenue Obligations, the expected subsidy payments, the earliest date the Revenue Obligations may be called, the CUSIPs for the Revenue Obligations and other information described on the form and in the instructions therefor. • Tax Certificate: The District will execute a Tax Certificate in which it has set forth certain expectations, covenants, representations, certifications and elections that were relied upon by Special Counsel in giving a legal opinion to the District that the Revenue Obligations qualified as BABs and as "qualified bonds". IV. Compliance Policy • Adoption of Compliance Policy: Although not required under the statute, the Service has indicated that it expects each issuer of BABs (or other governmental obligations) to establish procedures for the monitoring of compliance and correction of noncompliance with the applicable rules (including those described above). o Most recently, the Service has released Form 14127, the "Direct Pay Bonds Compliance Check Questionnaire", which it has indicated will be sent to each issuer of"qualified bonds", which inquires into whether the issuer has adopted a compliance policy; in addition, that same inquiry is made on the Form 8038-B that must be filed in respect of the "qualified bonds". A copy of Form 14127 is attached and should be reviewed carefully by the District in connection with the execution and delivery of the Revenue Obligations. o The compliance policy should be adopted by formal action of the appropriate governing body. • Contents of Compliance Policy: While there are no specific requirements that must be satisfied by the District's compliance policy,we suggest that at a minimum: o The policy specifically identify, by job title, the person or persons who are primarily responsible for assuring that each compliance function is performed. o The policy specifically require that detailed and complete records be created and, together with all relevant supporting documents, be maintained in accordance 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 14 with the requirements set forth in the Tax Certificate, and that the records be maintained until at least three years after the later of(i)the final retirement of the Revenue Obligations or (ii) final retirement of any bond issued to prepay (or re- prepay) any portion of the Revenue Obligations, in order to demonstrate at any time during that period: a. That the issue price of the Revenue Obligations did not include any impermissible bond premium; b. That no more than 2% of the sale proceeds of the Revenue Obligations have been allocated to issuance costs; c. That 100% of the available project proceeds have been either deposited into and held in a reasonably required debt service reserve fund, or allocated to capital expenditures for real or tangible personal property, or allocated to investments, and that no portion of the available project proceeds has been allocated to the refunding of any municipal debt; d. That the Revenue Obligations are not private activity bonds; and e. That the arbitrage yield restriction and arbitrage rebate requirements are being satisfied. o The policy specify procedures to be followed by the employee or officer with designated responsibility in the instance in which he or she believes that any failure to comply with any requirement necessary to maintain the Revenue Obligations as "qualified bonds" has occurred or is likely to occur, including in any such instance notification of appropriate persons, engagement of professional advisors and such other steps as might be necessary in order to address and remedy the failure. • Enforcement: It is emphasized that the enforcement procedures of the Service as to verification of compliance are new and are evolving. The compliance policy adopted by the District should be reviewed and modified to conform to the evolving expectations of the Service as to the best practices of issuers of"qualified bonds". 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges May 13, 2010 Page 15 IRS CIRCULAR 230 DISCLOSURE: TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, WE INFORM YOU THAT ANY U.S. FEDERAL TAX ADVICE CONTAINED IN THIS COMMUNICATION(INCLUDING ANY ATTACHMENTS) IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (I) AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE OR (II) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY TRANSACTION OR TAX-RELATED MATTER[S]. 90035963.3 Privileged and Confidential Subject to Attorney/Client and Work Product Privileges STEERING COMMITTEE Meeting Date To Bd. of Dir. 05/26/10 05/26/10 AGENDA REPORT Item Number Item Number 2 11 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Approve Santa Ana River Interceptor Line Loan (SARI) and Repayment Agreement No. D07-042 with the Orange County Flood Control District (OCFCD), providing for: 1. A loan of up to 60% of the successful bid amount for improvements to the SARI Line not to exceed $72,000,000; 2. No interest accruing until June 2018; 3. 3% interest on any unpaid balance through June 30, 2022 and the complete repayment by July 1 , 2022; and, 4. Authorize the release of $36,000,000 to OCFCD immediately after the award of the contract, and to allow the remaining balance to be released 12 months later. SUMMARY The County of Orange (County) is in the process of constructing a significant improvement to the Prado Dam; specifically, raising the height of the dam. This improvement will result in a negative impact to the Santa Ana River Interceptor (SARI) Line. As the Prado Dam Improvement Project sponsor, the County is responsible for mitigating any negative impacts of the project. Initial mitigation costs were estimated to be as much as $100 million. OCSD previously agreed to loan 60% of that cost ($60 million) to the OCFCD. However, based on more recent information, the total cost has been revised to $120 million. OCSD proposes to loan 60% of the total cost ($72 million) under the terms agreed upon in the prior agreement. Page 1 Participating agencies will contribute as follows: 1. The County would cash-flow $36 million. 2. SAWPA would advance the project $12 million over a two-year period. 3. OCSD would advance the project $72 million over a two-year period. a) OCSD would be reimbursed by the County. b) The County would be primarily relying on State Subvention Funds. c) The Subvention Fund reimbursement process has been improved. d) This loan would be from our reserves and would not impact OCSD rates. PRIOR COMMITTEE/BOARD ACTIONS June 2007: Board approved Santa Ana River Interceptor Line Loan and Repayment Agreement No. D07-42 with the Orange County Flood Control District (OCFCD) to provide a no-interest loan until 2018 (revised from 2016), of 60% of the total bid amount. April 2007: Board approved Santa Ana River Interceptor Line Loan and Repayment Agreement No. D07-42 with the Orange County Flood Control District (OCFCD) to provide a no interest loan until 2016, of 60% of the total bid amount. ADDITIONAL INFORMATION The Orange County Flood Control District (OCFCD) is a department of the County of Orange (County) responsible for providing control of flood and storm waters within the boundary of the County of Orange, and of streams flowing into the County such as the Santa Ana River or San Juan Creek; to mitigate the effects of tides and waves; and to protect the harbors, waterways, public highways and property in the district from such waters. The County is a member agency of Orange County Sanitation District (OCSD). OCSD owns and operates the Santa Ana Regional Interceptor (SARI); a regional sewer pipeline from the Orange County line to the OCSD sewage treatment plant in Huntington Beach. The SARI was constructed as a joint project of OCSD and the Santa Ana Watershed Project Authority. OCFCD and OCSD wish to advance the protection and/or relocation of the SARI (the SARI Project) in response to existing conditions and the raising of the Prado Dam by the U.S. Army Corps of Engineers (the Corps) and OCFCD. The SARI Project shall, to the extent required by law, be publicly bid. The total amount of construction, design, environmental and project administration costs is not expected to exceed one-hundred million dollars ($120,000,000). OCSD will benefit from the continued, uninterrupted use of the SARI and would, therefore, benefit from OCFCD accelerating the protection and/or relocation of Page 2 the SARI Project as part of the Santa Ana River Mainstem Project. OCFCD plans to reimburse OCSD from the State Flood Control Subventions Program. OCSD would loan to the OCFCD 60% of the winning bid amount, plus design, environmental and project administration (total project costs), for purposes of SARI Project design and construction, up to the amount of seventy-two million dollars ($72,000,000), thirty-six million dollars ($36,000,000) after the award of the construction contract, and the remainder one year after initial deposit. If the SARI Project is publicly bid and the total project cost exceeds one-hundred twenty million dollars ($120,000,000), OCFCD and OCSD shall meet and confer to determine if an increase in the Project loan amount is warranted and feasible prior to award of the construction contract, recognizing that, if such an increase is not warranted or feasible, the construction contract may not be awarded. The OCFCD agrees to pay OCSD all funds loaned by OCSD in a maximum amount of seventy-two million dollars ($72,000,000) to the OCFCD as soon as subvention funding is received with the total balance repaid by no later than July 1, 2022, regardless of whether OCFCD received any subvention funds. Interest shall accrue on the unpaid balance from July 1, 2018, at an annual interest rate of three percent (3%) until the unpaid balance has been repaid. Repayment installments will be made within 30 days of the OCFCD's receipt of subvention funding in an amount equivalent to sixty percent (60%) of the funds received with the balance repaid by no later than July 1, 2022 regardless of whether OCFCD received any subvention funds. JDR:LT:Ic Page 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 05/05/10 05/26/10 AGENDA REPORT Item Number Item Number 2 13 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Terry Krie GENERAL MANAGER'S RECOMMENDATION 1. Approve Professional Services Agreements with Ninyo & Moore and Converse Consultants providing for on-call Materials Testing, Inspection, and Other Geotechnical Testing Services for Collection System and Treatment Plant Projects, PSA2010-001, for a three-year period with an amount not to exceed $300,000 for each agreement ($600,000 total); and, 2. Approve a contingency for each agreement of $30,000 (10%). SUMMARY The Orange County Sanitation District (Sanitation District) utilizes outside consultants for material testing and geotechnical investigation services in support of Capital Improvement Projects during the planning, design, and construction of facilities both inside the plants and for the collection systems. These laboratories are responsible for taking samples, material testing, geotechnical testing, and analysis. Requests for Proposal (RFP) were sent to twelve area testing and analysis firms and nine proposals were received. Proposals from Fugro West, Inc. and Kleinfelder were both deemed unresponsive. As a result, there were seven responsive proposals that were evaluated in accordance with defined Sanitation District procedures as required by the Delegation of Authority (Resolution No. 07-04). The proposed Services Agreements shall cover a three-year period (FY 2010-2013). The agreement amount for this period was determined by staff considering average testing and analysis hours of past years and those anticipated in support of the Capital Improvement Program. Sanitation District staff will use these consultants on an as- needed basis only. The total agreement cost is not guaranteed, nor is it paid to the consultant if their services are not used. PRIOR COMMITTEE/BOARD ACTIONS None Form No.DW-102.2 Revised: 01/11/2010 Page 1 ADDITIONAL INFORMATION Staff Evaluations of Proposals: The seven proposals were evaluated and they were ranked according to the scores from the evaluation team as follows: Firm Ninyo & Converse Smith Amec Koury CTE Geodesign Moore Emery Reviewer A 170 Pts. 110 Pts. 120 Pts. 100 Pts. 110 Pts. 110 Pts. 60 Pts. Reviewer B 170 Pts. 120 Pts. 130 Pts. 110 Pts. 120 Pts. 120 Pts. 70 Pts. Reviewer C 175 Pts. 170 Pts. 170 Pts. 170 Pts. 150 Pts. 150 Pts. 130 Pts. Reviewer D 120 Pts. 170 Pts. 140 Pts. 170 Pts. 140 Pts. 140 Pts. 100 Pts. Average Total Score 159 Pts. 143 Pts. 140 Pts. 138 Pts. 130 Pts. 130 Pts. 90 Pts. Ranking 1 2 3 4 5Tie 5Tie 6 Cost proposals were opened on April 19, 2010 and contracts are recommended to be awarded to Ninyo & Moore and Converse Consultants each for an amount not to exceed $300,000. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This Professional Services Agreement complies with the authority levels of the Sanitation District's Delegation of Authority. These funds are included in the individual project budgets that require these services. Date of Approval Contract Amount Contingency 05/26/10 $300,000 $30,000 (10%) JH:TK:eh:cb:gc H:\ntglobal\Agenda Draft Reports\Operations\PSA2010-001 Geotechnical and Material Testing Services PSA Award 050510.docx Form No.DW-102.2 Revised: 01/11/2010 Page 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 05/05/10 05/26/10 AGENDA REPORT Item Number Item Number 3 14 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Terry Krie GENERAL MANAGER'S RECOMMENDATION 1. Approve Professional Services Agreements with Stantec Consulting and Bush and Associates providing for on-call Surveying Services for Collections System and Treatment Plant Projects, PSA2010-002, for a three-year period with an amount not to exceed $200,000 for each agreement ($400,000 total); and, 2. Approve a contingency for each agreement of $20,000 (10%). SUMMARY The Orange County Sanitation District (Sanitation District) utilizes outside consultants for surveying services in support of Capital Improvement Projects during the planning, design, and construction of facilities both inside the plants and for the collection systems. These licensed surveying companies are responsible for locating the position of new facilities, checking placement of underground facilities, and performing other varied tasks as directed by staff. Requests for Proposal (RFP) were sent to 12 local surveying firms and nine proposals were received. Cal Surveying, Construction Testing & Engineering, Inc., and Towill, Inc. declined to submit a proposal. Hunsaker and Associates and RBF Consulting took exception to certain contract provisions and were deemed non-responsive. As a result, there were seven responsive proposals received. The proposals were evaluated in accordance with defined Sanitation District procedures as required by the Delegation of Authority (Resolution No. 07-04). The proposed Professional Services Agreements are for a three-year period (FY 2010- 2013). The estimated contract amount for this period was derived by staff considering average survey hours of past years and those anticipated in support of the Capital Improvement Program. District staff will use these consultants on an as-needed basis only. The total agreement cost is not guaranteed nor is it paid to the consultant if their services are not used. PRIOR COMMITTEE/BOARD ACTIONS None Form No.DW-102.2 Revised: 01/11/2010 Page 1 ADDITIONAL INFORMATION Staff Evaluations of Proposals: The seven proposals were evaluated and they were ranked according to the scores achieved. The following summarizes the attached ranking results for the nine firms: 1. Stantec Consulting 120 Points 2. Psomas 115 Points 3. Bush and Associates 113 Points 4. MDS Consultants 108 Points 5. Walden & Associates 108 Points 6. Forkert Engineering 105 Points 7. Proactive Engineering Consultants, Inc. 93 Points Attached is a summary of how the evaluation team collectively viewed the firms: Firm Stantec Psomas Bush & MDS Walden Forkert Proactive Assoc & Assoc Reviewer A 60 Pts. 90 Pts. 100 Pts. 100 Pts. 80 Pts. 90 Pts. 60 Pts. Reviewer B 80 Pts. 100 Pts. 120 Pts. 100 Pts. 90 Pts. 110 Pts. 80 Pts. Reviewer C 170 Pts. 140 Pts. 130 Pts. 130 Pts. 160 Pts. 120 Pts. 120 Pts. Reviewer D 170 Pts. 130 Pts. 100 Pts. 100 Pts. 100 Pts. 100 Pts. 110 Pts. Average Score 120 Pts. 115 Pts. 113 Pts. 108 Pts. 108 Pts. 105 Pts. 93 Pts. Ranking 1 2 3 4 Tie 4 Tie 5 6 2 Person Crew $/hr $215 $235 $172 $240 $195 $205 $185 Cost proposals were opened on April 19, 2010. Staff attempted to negotiate the hourly fee with the top two ranked firms in accordance with the Sanitation District Delegation of Authority Resolution. After negotiations, staff recommends awarding PSA to Stantec Consulting and Bush and Associates, each for an amount not to exceed $200,000. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This Professional Services Agreement complies with the authority levels of the Sanitation District's Delegation of Authority. These funds are included in the individual project budgets that require these services. Date of Approval Contract Amount Contingency 05/26/10 $200,000 $20,000 (10%) JH:TK:eh:cb:gc H:\dept\agenda\Operations Committee\Operations 2010\0510\06.PSA2010-002 Surveying.docx Form No.DW-102.2 Revised: 01/11/2010 Page 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 05/05/10 05/26/10 AGENDA REPORT Item Number Item Number 4 15 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Terry Krie GENERAL MANAGER'S RECOMMENDATION 1. Approve Professional Services Agreements with V&A Consulting Engineers, Inc. and CSI Services, Inc. providing for on-call Coatings Inspection, Corrosion Testing, and Confined-Space Entry Services for Collections System and Treatment Plant Projects, PSA2010-003, for a three-year period for each agreement for a total amount not to exceed $400,000 for each agreement, ($800,000 total); and, 2. Approve a contingency of $40,000 (10%) for each agreement ($80,000 total) SUMMARY The Orange County Sanitation District (Sanitation District) utilizes outside consultants for coatings inspection, corrosion testing, and confined space entry services in support of Capital Improvement Projects during the planning, design, and construction of facilities both inside the plants and for the collection systems. These consultants will be utilized in inspection and root cause analysis for areas showing corrosion, inspection of newly coated structures and mechanical systems, and provide their own access to confined space areas. The corrosion consultants are also responsible for taking samples, performing material testing/analysis, and performing other related tasks as directed by staff. Requests for Proposal (RFP) were sent to nine corrosion investigation firms and three proposals were received. The proposals were evaluated in accordance with defined Sanitation District procedures as required by the Delegation of Authority (Resolution No. 07-04). The proposed Professional Services Agreements are for a three-year period (FY 2010-2013). The estimated contract amount for this period was determined by staff considering industry experience, as well as testing and analysis workload anticipated in support of our project volume. Sanitation District staff will use these consultants on an as-needed basis only, and will be billed at an hourly rate based on actual work performed. The total agreement cost is not guaranteed, nor is it paid to the consultant if their services are not used. Form No.DW-102.2 Revised: 01/11/2010 Page 1 PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION Staff Evaluations of Proposals: The three proposals were evaluated and ranked according to the total scores from the evaluation team as follows: Firm V&A CSI Schiff& Associates Reviewer A 380 Points 410 Points 330 Points Reviewer B 358 Points 356 Points 322 Points Reviewer C 500 Points 450 Points 435 Points Reviewer D 410 Points 310 Points 220 Points Average Score 412 Points 382 Points 327 Points Ranking 1 2 3 :_] Cost proposals including hourly rates were opened on April 19, 2010, and contracts are recommended to be awarded to V&A Consulting Engineers, Inc and CSI Services, Inc., each for an amount not to exceed $400,000. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This Professional Services Agreement complies with the authority levels of the Sanitation District's Delegation of Authority. These funds are included in the individual project budgets that require these services. Date of Approval Contract Amount Contingency 05/26/10 V&A Consulting Engineers $400,000 $40,000 (10%) 05/26/10 CSI Services, Inc. $400,000 $40,000 (10%) JH:TK:cb:gc:cb H:\dept\agenda\Operations Committee\Operations 201 0\051 0\07.PSA2010-003 Corrosion.docx Form No.DW-102.2 Revised: 01/11/2010 Page 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 05/05/10 05/26/10 AGENDA REPORT Item Number Item Number 5 16 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance GENERAL MANAGER'S RECOMMENDATION 1. Approve request for transfer of $30,500 from the Generator Truck item to the Jet Rodder item as shown in the Proposed Capital Equipment Budget Detail on FY 2009-10 Budget Update Section A, page 20; and, 2. Approve the purchase of one three-axle Combination Sewer Cleaning Truck with Positive Displacement Blower, for an amount not to exceed $414,400. SUMMARY Due to the current Delegation of Authority (DOA), the General Manager is not authorized to make a funds transfer of this type without Board approval. Fleet Services is requesting the transfer of funds in the amount of $30,500 from the Generator Truck to the new truck with a Positive Displacement (PD) Blower for a total of $414,400. In accordance with DOA section 3.08, subsection C., Orange County Sanitation District Contracts / Purchasing Division will procure the truck from the General Services Agency program. Staff recommends the transfer of funds and the procurement. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION The Fleet Services Division has replacement criteria of 10 years or 100,000 miles whichever comes first. The 1995 hydro flusher was beyond its useful life and in addition is no longer cost effective to maintain. Fleet Services Division budgeted funds in the FY 2009-10 Capital Equipment budget for the replacement of a 1986 Generator Truck. Based on the current fleet inventory of generator trucks and portable trailer mounted generator units, the existing generator truck will not be replaced after it is removed from service. The budgeted funds for the generator truck will be transferred to various business needs including assisting with the procurement of the three-axle Combination Sewer Cleaning Truck with Positive Displacement (PD) Blower. The originally budgeted amount in FY 2009-10 Capital Equipment funds for the replacement of an older and obsolete 1995 hydro flusher truck were to be used to purchase a new two two-axle hydro flusher a.k.a. Jet Rodder for the Collections Facilities Division of the Operations and Maintenance Department. The original amount budgeted for the Jet Rodder was $ 383,900. Since the winter of 2007 and the FY 2008-09 and FY 2009-10 budget cycle the Division's business needs have changed regarding equipment type. Replacing the existing Jet Rodder with a more capable three-axle Combination Sewer Cleaning Truck with PD Blower will perform multiple functions while increasing the use and efficiency of staff and equipment. The PD air blower is more advantageous over the centrifugal fan air mover that has been used in the past. This includes minimizing staff entry into high-risk confined spaces to remove debris. CEQA None BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted, but funds are insufficient. (Line item: Section A, Page 20). Transfer $30,500 from the Generator Truck line item to the $383,900 Jet Rodder line item for a new total line item budget of $414,400. Date of Approval Contract Amount Contingency 05/26/10 $414,400 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 05/05/10 05/26/10 AGENDA REPORT Item Number Item Number 7 17 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Dean Fisher, Engineering Manager GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 10 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH2M Hill, Inc., authorizing: 1. Establish an amount not to exceed $13,770,000 for year nine (Fiscal Year 2010-11) of the ten-year contract; and, 2. Increase the amount of the ten-year contract to a total amount not to exceed $122,724,978. SUMMARY We are currently in the eighth year of a ten-year contract with Integrated Program Management Consultants (IPMC). It is anticipated that the current Capital Improvement Program (CIP) will require the use of IPMC through Fiscal Year (FY) 2011-12 to coincide with the completion of the secondary treatment expansion projects. Staff will be working on 76 active projects during FY 2010-11 with estimated CIP expenditures of approximately $179,000,000. A detailed planning effort, along with resource forecasting, has identified the need for 54 IPMC staff to augment the Orange County Sanitation District (Sanitation District) staff to complete FY 2010-11 work. This total is eight less staff than the FY 2009-10 authorization of 62 staff. IPMC will augment Sanitation District staff in Division 750 (Project Management), Division 760 (Engineering and Construction), Division 770 (Facilities Engineering) and Division 780 (Asset Management). The functions these people will perform are described in more detail below. The benefits provided by IPMC include the rapid mobilization of highly skilled/technical staff, flexibility to change the mix of staff positions on an immediate and as-needed basis, the ability to reduce staff as workloads decrease, expertise in project controls, single point responsibility for contracted work, training and development of Sanitation District staff, access to technical expert to support special efforts, and many years of experience working on similar programs throughout the United States and the world. Staff believes that using a Program Management Consultant approach is a practical, cost-effective, and efficient way to augment Sanitation District staff to deliver the CIP during the next two years of peak CIP work. Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 1 The Sanitation District is also pleased with the professionalism, expertise, and overall level of service that we have received from IPMC to date. PRIOR COMMITTEE/BOARD ACTIONS May 2009 - Approved Amendment No. 9 to the Professional Services Agreement with Integrated Program Management Consultants for $15,877,732, increasing the total amount not to exceed $108,954,978. May 2008 - Approved Amendment No. 8 to the Professional Services Agreement with Integrated Program Management Consultants for $16,987,271, increasing the total amount not to exceed $93,077,246. May 2007 - Approved Amendment No. 7 to the Professional Services Agreement with Integrated Program Management Consultants for $15,997,936, increasing the total amount not to exceed $76,089,975, and extending the PDSA for an additional five-year period through FY 2011-12. May 2006 - Approved Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants for $14,999,656, increasing the total amount not to exceed $60,092,039. June 2005 - Approved Amendment No. 5 to the Professional Services Agreement with Integrated Program Management Consultants for $15,585,558, increasing the total amount not to exceed $45,092,383. June 2004 - Approved Amendment No. 4 to the Professional Services Agreement with Integrated Program Management Consultants for $12,836,801, increasing the total amount not to exceed $29,506,825. June 2003 - Approved Amendment No. 3 to the Professional Services Agreement with Integrated Program Management Consultants for $150,000, and an additional $12,484,750 for year two of the contract, FY 2003-04, increasing the total amount not to exceed $16,670,024. June 2003 - Approved Amendment No. 2 to the Professional Services Agreement with Integrated Program Management Consultants for $50,000, increasing the total amount not to exceed $4,035,274. June 2003 - Approved Amendment No. 1 to the Professional Services Agreement with Integrated Program Management Consultants for $50,000, increasing the total amount not to exceed $3,985,274. August 2002 - Approved Professional Services Agreement with Integrated Program Management Consultants for an amount not to exceed $3,935,274. Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 2 ADDITIONAL INFORMATION Based on the current schedule and project workload, staff has estimated the level of effort that will be required from IPMC through FY 2011-2012. It is currently anticipated that no IPMC Staff will be required after FY 2011-2012; however, we will continually estimate the need for staff, both permanent and temporary, to support the CIP. The Sanitation District is continually evaluating whether to hire permanent staff and reduce the number of IPMC staff. For the anticipated ten-year duration of the IPMC contract, the overall staff cost associated with the CIP is approximately $312 million (currently estimated at $190 million for Sanitation District staff, and $122 million for IPMC staff). During this period of time, the Sanitation District will be expending approximately $2.3 billion for engineering, design, and construction of capital facilities. The $122 million planned to be expended for IPMC support equates to 6.0% of the total CIP expenditures. The average hourly billing rate for IPMC staff during FY 2009-10 was approximately $133/hr. IPMC billing rates include salaries, benefits, fixed costs which are sometimes referred to as overhead (buildings, administration, utilities, insurance, etc.), and a 5% profit. The "overhead" rate which is applied to an employee's raw salary is approximately 145% for IPMC. As a comparison, the engineering consultants who conduct studies and develop designs for the Sanitation District typically have an overhead rate range of about 190 to 200%. The IPMC overhead rate is less than typical consultant contracts because the Sanitation District is providing office space and equipment for IPMC field staff. The costs for IPMC will be charged to the individual CIP projects. Funding for IPMC costs are included in individual project budgets. Each fiscal year, as projects are planned, scheduled, budgeted, and resource needs identified, a projected cost will be presented to the Operations Committee for approval. Semi-annual updates for the entire program will also be provided. Project Management Office (Division 750): The Project Management Office (PMO) is home to the project management and project controls staff. Project Management Staff: In FY 2010-11, the PMO will be managing 76 active projects with a total budget of $1,813,000,000. The individual project budgets range in size from $1,000,000 to approximately $250,000,000. The Sanitation District has completed a staffing analysis, and believes a workload of three to six projects per Project Manager (PM) (based on size and complexity) is appropriate. IPMC will provide personnel to augment the Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 3 Sanitation District's Project Management Personnel in the PMO. The positions are described below: One Program Manager (Rapagna) to provide general management and supervision of all IPMC staff. The Program Manager will work with the Director of Engineering and Engineering Managers to ensure compliance with contracts, policies, and procedures. The Program Manager will provide technical oversight and direction in all aspects of the program and help ensure successful delivery of the CIP. The Program Manager manages technical work executed by the home office staff. Four Project Managers (Acevedo, MacDonald, MacLeod, Schock) to supplement Sanitation District PMs. The PMs provide day-to-day management and technical knowledge to deliver the assigned projects. One Business Manager (Billhardt) to provide assistance in the areas of time keeping, resources, accounting, and contracts management. One Administrative Assistant (Noya) to provide clerical and general administrative support, e.g., preparing agenda reports, general correspondence. Project Controls Staff: Including new FY 2010-11 projects, there are 274 projects being tracked by the Project Controls Group. Of these, 76 are active engineering projects, 75 are scheduled for the future, and 123 are cancelled or completed. These projects require a variety of monthly updates including cost reporting, development of performance measures, reports, and other presentation materials. Each staff function is described below: One Project Controls Manager/Project Scheduler (Michael) to provide scheduling and cost reporting support, QA/QC, technical oversight, and direction to controls staff. One Project Scheduler (GrosJean) to prepare project cost and schedule updates and milestone tracking in support of PMO Project Managers. Other duties performed by the schedulers include assisting in the CIP budgeting process, cash flow updates, preparation and updating of resource and workload planning information, providing input to the preparation of the Engineering CIP Semi-Annual Report, and provide training and support to Sanitation District staff on the use of the various computer software tools including P5, Access, and Business Object. One Project Controls Analyst (Reichenbach) to assist in time reporting, charge numbers, and general quality assurance of data used in the system. Other duties include preparation of the semi-annual reports and maintaining portions of the automated weekly timesheet in PCS to support project resource tracking. She will also serve as part-time scheduler on a number of Engineering CIP projects. Five Construction Cost Estimators (Baig, Collett, Davison, Villanueva, Zimmerman) assigned to prepare estimates for change orders, help negotiate changes during Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 4 construction, review design consultant estimates, and provide cost estimate input during the annual CIP validation process. One Construction Scheduling Lead (Alexander) to provide oversight on all matters related to the construction scheduling. Other duties include review and guidance in the preparation of monthly construction schedule analysis reports prepared by IPMC and the Sanitation District field schedule personnel. Will also participate in the preparation of time impact analysis and review of contractor submitted claims. Four Construction Schedulers (Bustillos, Dedhia, Lim, Rodriguez) assigned to ensure that contractors provide quality baseline schedules and keep them current (a vital element in our claims avoidance program). Field Schedulers review the contractor's initial schedule submittal and the schedule of values as well as monthly updates of contractor progress. Progress claimed by the contractors must be reviewed against the schedule plan each month for payment, and any request for additional time through change orders must be analyzed. One Document Control Lead (Cazares) to provide document control expertise and support for all aspects of CIP-related document management. Engineering & Construction Management (Division 760) IPMC is providing personnel to augment the Sanitation District's Engineering and Construction Management (E&CM) staff. E&CM is responsible for providing all the technical resources to the Project Managers. General assignments and duties are as follows: Seven Resident Engineers/Construction Managers (Barth, Bissonnette, Bryan, Fuller, Tovar, Waite, Vohra) to support construction management of CIP projects within the boundaries of the Sanitation District's two operating treatment facilities and outside of the plant boundaries, i.e., for pipeline and pump station contracts. They will utilize existing Sanitation District CM policies and procedures to represent the Sanitation District, coordinate construction activities, manage the construction contract, and document contractor compliance with the contract requirements. Two Electrical and Instrumentation & Control (I&C) Engineers (Etemadi, Olson). These Engineers are assigned to the CIP projects to provide specialized technical support to the project teams during both the design and construction phases. They ensure consultant and construction contractor compliance with Sanitation District requirements, guidelines, and polices. One Project Engineer (Aghanian). Project Engineers serve as the technical leads within the Sanitation District's project teams, and assist the PMs with verification of the project elements, coordinating project requirements with the O&M Department, developing the design consultant SOW, selecting the design consultant, and ensuring the construction documents are prepared using the Sanitation District standards. During the construction phase, they resolve design questions and issues for the Resident Engineers. Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 5 Three Civil/Mechanical Inspectors (Chemotti, Gilbert, Hartmann), seven Electrical, Instrumentation & Control Inspectors (Beck, Hozu, Johnson, Leak, Makela, Romo, Whitney), to support Quality Assurance (QA) of CIP projects within the two Treatment Facilities. They will utilize existing Sanitation District QA policies and procedures to represent the Sanitation District, coordinate construction and O&M activities, monitor construction site safety, and document contractor compliance with the contract requirements. One Civil Inspector (Martin) to support QA of pipeline and pump station projects. He will utilize existing Sanitation District QA policies and procedures to represent the Sanitation District, coordinate construction and traffic control activities, monitor construction site safety, and document contractor compliance with the contract requirements. One Commissioning Specialist (Shreve) to support commissioning and start-up of CIP projects within the two Treatment Facilities. Six Administrative Assistants (Chamberlain, Corona, Hays, Inman, Moore, Yousef) to provide a variety of administrative support including Submittals/Document Clerks (Corona, Hays, Yousef) for processing and tracking of construction contractor submittals; Project Administrative Assistant (Moore) for processing project correspondence and filing; general administrative support (Chamberlain, Inman) for processing project correspondence, Agenda Reports, and preparing CIP policy and procedures manual updates. Facilities Engineering (Division 770) IPMC is providing personnel to augment the Sanitation District's Facilities Engineering staff. Facilities Engineering is responsible for providing Project Managers and technical resources to implement miscellaneous small capital improvement projects to enhance safety, reliability and efficiency of facility operations. General assignments and duties are as follows: One Project Manager (Davis) to provide day-to-day management and technical knowledge to deliver the projects. One Civil Designer/Computer Assisted Design & Drafting (CADD) Technician (Tran) to provide technical support and assistance to PMs for project implementation. Asset Management (Division 780) IPMC is providing personnel to augment the Sanitation District's Planning staff. General assignments and duties are as follows: Two Electrical and Instrumentation & Control (I&C) Engineers (Woods, Lai) and one Civil Designer/Computer Assisted Design & Drafting (CADD) Technician (Beltran) to provide technical support for facility records and database management. Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 6 Home Office Support: "Home Office Support" is supplementary services from the offices of the Joint Venture Parties, Parsons and CH2M Hill, made readily available to support the needs of the Engineering Department. Technical study (task orders) work is based on providing engineering and other technical support for specific assignments using a pre-agreed upon scope of work, fee, and schedule. These tasks will be as authorized by the Director of Engineering when required, and may include assistance in the following areas: General Administration and Home Office Technical Support — general administration support includes accounting, contract administration, invoices, reproduction, and safety reports and reviews. Routine home office technical support includes urgent technical support (usually task less than 40 hours) in all areas of waste water engineering, construction, and project controls. CEQA and NEPA Assistance — support to the Planning Division on a variety of treatment, collections and pump station projects in preparing environmental documentation. CIP Related O&M Studies — Support O&M with studies on various issues related to the CIP. Community Outreach Support — assist the Communications Department as needed on all collections projects in preparing outreach plans, conducting meetings, crisis management plans, etc. IT and PCS systems programming support, including support for troubleshooting and system upgrades. General technical support— throughout the year issues come up which need technical support and/or immediate attention. For example, in FY 2009-2010, IPMC provided support related to CADD drafting, software configuration and technical support, master plan preparation, process performance testing and value engineering. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This item has been budgeted and the budget is sufficient for the recommended action. Funding for IPMC costs are included in individual project budgets. Date of Approval Contract Amount Contingency 05/26/10 $13,770,000 for FY 2010-11 N/A JH:eh:cb:gc:cb H:\dept\agenda\Board Agenda Reports\2010 Board Agenda Reports\05\Item 17.IPMC Amend 10.docx Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 7 ADMINISTRATION COMMITTEE Meeting Date To Bd. of Dir. 04/14/10 05/26/10 AGENDA REPORT Item Number Item Number 2 20 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Adopt Ordinance No. OCSD-40, An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and wastehaulers; and Repealing Ordinance No. OCSD-36: Adopting Revised Table A Re Capital Facilities Capacity Charges and Revised Table C Re Supplemental Capital Facilities Capacity Charges a. Motion to Read Ordinance No. OCSD-40 by title only and waive reading of said entire ordinance. b. Motion to adopt Ordinance No. OCSD-40, An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and wastehaulers; and Repealing Ordinance No. OCSD-36. SUMMARY The Capital Facilities Capacity Charge (CFCC) and Supplemental Capital Facilities Capital Charges (SCFCC) are based upon the most recently completed capital strategic plan. In December of 2009, the 2009 Facilities Master Plan was adopted and staff was directed to perform a rate study on CFCCs. CFCC is a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the OCSD's system, or an existing structure is expanded or increased. This charge is to pay for the expansion of OCSD facilities to accommodate the new property being charged. Based upon the new Master Plan, the residential CFCC is proposed to decrease by approximately 35 percent. However, the non-residential CFCC is proposed to increase by approximately 13 percent. SCFCC are fees to Industrial Permittees that exceed their annual baselines for Flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS). As a result of the rate study, Flow and TSS are recommended to be increased 6 percent and 79 percent, respectively, while BOD is recommended to decrease 59 percent. Page 1 PRIOR COMMITTEE/BOARD ACTIONS 1. December 2009: Approved adoption of 2009 Facilities Master Plan. 2. December 2009: Directed staff to perform a rate study on CFCCs. 3. May 2008: Approved Ordinance No. OCSD-36. ADDITIONAL INFORMATION Staff received direction from the Board of Directors to perform a rate study on CFCCs when the 2009 Facilities Master Plan was adopted in December of 2009. The FCS Group was contracted to perform a review and update of the CFCCs based upon the revised assumptions contained within the new Master Plan. One of the outcomes of the new Master Plan is that future build out is less than what was anticipated in the previous master plan. In addition, the District has experienced a shift in its customer base resulting in an increase in residential versus non-residential. Staff believes the shift has occurred due to recent annexations that were primarily residential and new residential construction that was completed in recent years. The shift towards residential has resulted in a decrease to the residential CFCCs and an increase to the non-residential CFCCs. The last rate study to support the CFCC and SCFCC was in 2006 when the majority of the CIP program concentrated on increased BOD treatment due to the move to full secondary treatment. At that time a shift occurred in the SCFCCs increasing the costs for BOD and reducing the costs for TSS. The new Facilities Master Plan now concentrates on total treatment plant processes as opposed to concentrating mostly on secondary treatment. As such, BOD requirements are not as predominant as in the prior rate study, and now are more closely aligned with the new increased percentage requirements of TSS. Staff believes that the allocations for Flow, BOD and TSS accurately reflect the long term allocations of these constituents in the CIP program. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS 1. Proposed CFCCs and SCFCCs 2. 2010 CFCC Benchmarking 3. Proposed Ordinance No. OCSD —40 Page 2 Proposed CFCCs and SCFCCs ProposedUse Category Rate Basis Current Commercial / Industrial: CFCC CFCC Low Demand [1] Per 1,000 Square Feet $ 241 $ 272 Average Demand [3] Per 1,000 Square Feet $ 1,501 $ 1,692 High Demand [2] Per 1,000 Square Feet $ 3,565 $4,019 Single-Family Residential (SFR) [4] CFCC CFCC 5+ Bedrooms Per Unit (139% of Base) $ 6,946 $4,532 4 Bedrooms Per Unit (119% of Base) $ 5,949 $ 3,881 3 Bedrooms Per Unit (100% of Base) $4,998 $ 3,261 2 Bedrooms Per Unit (81% of Base) $4,046 $ 2,640 1 Bedroom Per Unit (62% of Base) $ 3,094 $ 2,019 Multi-Family Residential (MFR) [5] CFCC CFCC 4+ Bedrooms Per Unit (108% of Base) $ 5,399 $ 3,523 3 Bedrooms Per Unit (89% of Base) $4,448 $ 2,902 2 Bedrooms Per Unit (70% of Base) $ 3,496 $ 2,281 1 Bedroom Per Unit (50% of Base) $ 2,498 $ 1,630 Studio [6] Per Unit (32% of Base) $ 1,604 $ 1,047 Supplemental CFCC for Permit Users: SCFCC SCFCC Flow Per Gallon Per Day $ 0.001541 $ 0.001638 BOD Per Pound Per Day $ 0.865080 $ 0.351200 SS Per Pound Per Da $ 0.105130 $ 0.188340 Notes• [1] Includes nurseries, warehouses, churches, truck terminals, RV parks/storage yards, lumber/ construction yards, public storage buildings, and other facilities with similar volumes. [2] Includes restaurants, supermarkets, car washes, coin laundries, amusement parks, shopping centers with one or more restaurants or food court, food processing facilities, textile manufacturers, and other dischargers with similar volumes. [3] Includes all users not classified as low-demand or high-demand customers. [4] Bedroom additions are considered a change of use and a CFCC must be paid. Detached buildings will be considered separate residences. [5] MFR units consist of multiple units that receive one secured property tax bill. Includes senior housing with individual living units that include a kitchen. [6] A studio is considered to be a single room with no separating doors or openings leading to another part of the room (except for a bathroom). 2010 CFCC Benchmarking Residential Non-residential per 1,000 sq ft Agency 1 EDU* LOW AVG HIGH Notes City of Modesto $21,670 $3,215 $11,365 $19,745 Dublin San Ramon Services District $13,393 $1,830 $3,040 $35,210 Sacramento County $7,450 $745 $1,490 $14,900 City of Hayward $6,702 $816 $3,265 $31,344 Note 1 Oro Loma Sanitary District $6,555 N/A N/A N/A Note 7 Central Contra Costa Sanitary District $6,124 $842 $1,826 $23,505 Note 4,6 Orange County Sanitation District $4,998 $241 $1,501 $3,565 City of San Diego $4,124 N/A N/A N/A Note 7 Los Angeles County $4,055 $380 $2,798 $24,962 Note 5,6 Irvine Ranch Water District $3,928 $692 $692 $692 Note 2, 3 Union Sanitary District $3,813 $700 $1,800 $8,270 San Francisco $3,124 $160 $2,140 $6,500 Note 6 Vallejo Sanitation $2,415 $270 $1,865 $6,800 City of Fresno $2,119 $208 $601 $7,540 Note 1 East Bay MUD $1,235 $188 $752 $15,224 Note i City of Los Angeles $747 $52 $449 $1,513 Equivalent Dwelling Unit Low=Warehouse Avg= Office/Commercial High = Restaurant Notes: (1)- Non-residential data represents OCSD flow, bod, and/or tss assumptions (2)- Residential average rate for Improvement District 1 (3)- Non-residential data has no distinction between low, avg, high (4) - Data represents average of gravity and gravity& pumping zones (5)- Data represents average of all districts (6)-Currently conducting rate study or increases are being scheduled (7)- Information could not be obtained from agency ORDINANCE NO. OCSD-40 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING CAPITAL FACILITIES CAPACITY CHARGES; ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL CHARGES, SOURCE CONTROL PERMITTEES AND WASTEHAULERS; AND REPEALING ORDINANCE NO. OCSD-36. ADOPTING REVISED TABLE A RE CAPITAL FACILITIES CAPACITY CHARGES, REVISED TABLE C RE SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES REVISED TABLE E RE INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES, AND REAFFIRMING ALL OTHER CHARGES WHEREAS, the Board of Directors of the Orange County Sanitation District ("OCSD") has previously adopted Ordinance No. OCSD-36, establishing Capital Facilities Capacity Charges to be imposed when properties either newly-connect to the OCSD's system, or expand the use of the property previously connected to the OCSD; establishing miscellaneous industrial discharger fees, source control/non-compliance sampling fees, and wastehauler charges, which Ordinance is presently in full force and effect; and WHEREAS, for purposes of improved efficiency and effectiveness of the OCSD's operations, it is the intent, by the adoption of this Ordinance, to establish Class I, Class II, Special Purpose Discharge and Wastehauler permit charges for use and capital facilities fees, and to provide for increases in certain miscellaneous charges and fees. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Fees and Charges Ordinance — Adopted 172010.1 1 TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS Section 1.01, Findings — Declaration of Intent ARTICLE II: CAPITAL FACILITIES CAPACITY CHARGES Section 2.01, Purpose and Scope Section 2.02, Definitions Section 2.03, Connection Permits: Required Section 2.04, Capital Facilities Capacity Charge: Payment Section 2.05, Capital Facilities Capacity Charge: Time of Payment Section 2.06, Capital Facilities Capacity Charge: Schedule of Amounts Table A Capital Facilities Capacity Charges Table B Plan Check and Inspection Fee Schedule Section 2.07, Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users — Special Purpose Dischargers — Definitions Section 2.08, Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users Section 2.09, Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers Section 2.10, Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users — Special Purpose Dischargers Table C Supplemental Capital Facilities Capacity Charges Section 2.11 , Capital Facilities Capacity Charge: Replacement Section 2.12, Capital Facilities Capacity Charge: Remodeled Section 2.13, Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements Section 2.14, No Refund or Transfer Section 2.15, Baseline Transferability Section 2.16, Annual Updates Section 2.17, Affordable Housing Projects 172010.1 2 ARTICLE III: MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 3.01, Purpose and Scope Section 3.02, Administrative Fees and Charges Relating to Permittees Section 3.03, Industrial Discharger, Source Control, and Non-Compliance Sampling Fees Section 3.04, Special Purpose Discharge Permittees; Charges for Use Section 3.05, Class I and Class II Permittees — Charges for Use Section 3.06, Wastehauler Charges for Use Section 3.07, Administrative Appeals Table D Administrative Fees and Charges Relating To Permittees Table E Industrial Discharger, Source Control and Non-Compliance Sampling Fees Table F Class I and Class II Permittees and Special Purpose Discharge Permittees Charges For Use Table G Wastehauler Charges for Use ARTICLE IV: MISCELLANEOUS Section 4.01, Application of Ordinance Section 4.02, Exceptions Section 4.03, Severability Section 4.04, Effective Date Section 4.05, Repeal Section 4.06, Certification and Publication 172010.1 3 ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings — Declaration of Intent. The Board of Directors of OCSD has previously adopted Master Plans, as more particularly described in Findings B, C, D, and E below, setting forth the financial and engineering needs of the OCSD, and hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. A. As of July 1, 1998, OCSD was consolidated into one single County Sanitation District to carry on the functions of the predecessor Districts. B. That a comprehensive 20-year Master Plan of Capital Facilities, entitled "2009 Facilities Master Plan", hereinafter referred to as the "Master Plan", which includes detailed financial and engineering reports, was prepared, approved, and adopted by the Boards of Directors in 2009 setting forth and identifying the required future development of OCSD Facilities, including the financial projections for providing sewer service to all properties within the service area. C. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of the California Constitution and Government Code Section 66016, and other provisions of law. D. That the OCSD performed a detailed assessment of all types and categories of users; the demand on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternative methodologies for establishing fair and equitable charges to connect to and gain access to the system. The current methodology was approved and adopted by OCSD Resolution No. 99-21 of the Board of Directors on October 27, 1999. E. That in support of this Ordinance and the revised charges for Capital Facilities Capacity Charges as provided for on Tables A, B, and C herein, the Board of Directors finds that the Capital Improvement Program is consistent with the goals and policies of the Board of Directors, the member agencies, and the public and accommodates projected increased flows and the rehabilitation and refurbishment of existing facilities. The Board further finds that programming annual adjustments in sewer service charges over a period of years is appropriate and ensures adequate revenues to finance the improvements and programs necessary to incorporate secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. The 572010.1 4 Board of Directors also finds that such Sanitary Sewer Service Charges and Capital Facilities Capacity Charges are reasonably related to, and do not exceed the cost of providing sewer services. F. That the financial requirements of the OCSD, as shown in reports prepared by Staff and Consultants relating to the Master Plan and the CIP validation studies, are based on current, reliable information and data relating to population projections, wastewater flow, and capital facilities' needs, and are expected to be realized in each year as described in the reports. G. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the OCSD; to repay principal and interest on debt instruments; to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves; and to assist in the payment of costs to the OCSD to provide all regulatory administration and laboratory services related to the industrial dischargers, source control permittees, and wastehauler users of the OCSD's systems. H. That the owners or occupants of properties upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the OCSD's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. I. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. J. That the Sanitary Sewer Service Charge For Use established and levied by this Ordinance is to allow the OCSD to recover the reasonable costs to provide a service to individual properties which have been improved for any of numerous types of uses. The basis for the respective charge is the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service based upon actual use, consumption, and disposal of water to the OCSD's system in lieu of disposal by other means. K. That the Sanitary Sewer Service Charge For Use established by this Ordinance is not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and does not exceed the estimated reasonable cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. 572010.1 5 L. That the Sanitary Sewer Service Charge For Use adopted herein will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The adoption of this Sanitary Sewer Service Charge For Use will not result in any specific project, nor result in a direct physical change in the environment. M. That the Sanitary Sewer Service Charge For Use adopted herein is established upon a rational basis between the fees charged each customer and the service and facilities provided to each customer of the OCSD, a portion of which is necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. N. That the Board of Directors has previously, by duly adopted Ordinances, commencing in 1969, and most recently by Ordinance No. OCSD-36, established Capital Facilities Capacity Charges, formerly known commonly as "connection charges" or "fees", to be paid by all persons obtaining a permit to connect to the OCSD's system. Said Charges are required as a financial payment to have access to and use of the OCSD's wastewater collection, treatment and disposal facilities in existence at the time of connecting to the system, and for future facilities to be constructed. O. That the Sanitary Sewer Service Charge For Use and Capital Facilities Capacity Charges established here are an incident but not a condition of development, payable only on request to receive service by the property owner for the benefit of those persons on the property that use the service. The charges are not an incident of property ownership, nor are they a property-related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. P. That the OCSD's previous and present Capital Facilities Capacity Charges Ordinances, include[d] authority for the OCSD to levy an excess or supplemental capacity charge upon commercial and industrial users who discharge quantities or high strength wastewater greater than the established base line of authorized discharge. Q. That the Capital Facilities Capacity Charges re-enacted by this Ordinance are non-discriminatory, as applied to all users of the system, and are established upon a rational basis between the fees charged each category of property that is connecting, and the service and facilities provided to each connected property or structure, by the OCSD, within a given category. R. That the miscellaneous charges and fees re-enacted by this Ordinance without change are established upon a rational basis between the fees charged to each industrial discharger, source control permittee, or wastehauler and the service and facilities provided to each. 572010.1 6 S. That the OCSD is required by federal and state law, including the Federal Water Pollution Control Act, also known as the Federal Clean Water Act (33 U.S.C. 1251, et seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (California Water Code Sections 13000 et seq.) to implement and enforce a program for the regulation of wastewater discharges to the OCSD's sewers. T. That the OCSD is required by federal, state and local law, to meet applicable standards of treatment plant effluent quality. U. That pursuant to these requirements, the Board of Directors has adopted an ordinance establishing Wastewater Discharge Regulations. V. That the OCSD incurs additional costs in conducting non- compliance sampling of those industrial wastewater dischargers who violate the OCSD's Wastewater Discharge Regulations and in administering the industrial, wastehauler, and special discharge permit programs. W. That the ordinance establishing Wastewater Discharge Regulations provides that the Board of Directors is to establish various fees and charges to recover those costs to the OCSD which are made necessary by industrial dischargers and wastehaulers who violate the OCSD's Wastewater Discharge Regulations. X. That the industrial discharger, source control, and wastehauler fees and charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the OCSD of industrial discharger, source control, or wastehauler use of the OCSD's facilities and for the administration and implementation of permit and fee processing, non-compliance sampling, and related services associated with the OCSD's Source Control Program. Y. That all fees and charges established herein have been approved by the OCSD's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. Z. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). AA. That each of the Findings set forth in previous Ordinances Nos. OCSD-05, OCSD-06, OCSD-11, OCSD-13, OCSD-15, OCSD-18, OCSD-19, OCSD-20, OCSD-22, OCSD-24, OCSD-26, OCSD-30B, OCSD-32, OCSD-36 are reaffirmed and readopted hereat, except to the extent that they have been specifically superseded or otherwise amended by specific Findings herein. 172010.1 7 ARTICLE II CAPITAL FACILITIES CAPACITY CHARGES Section 2.01. Purpose and Scope. The purpose of this Ordinance is to impose Capital Facilities Capacity Charges when properties, either newly-connect to the OCSD's system, or expand the use of the property previously connected to the OCSD. Revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, and reconstruction of the wastewater collection, treatment and disposal facilities of the OCSD; to repay principal and interest on debt instruments; or to repay federal or state loans for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2.02. Definitions. A. "Actual construction costs" include the cost of all activities necessary or incidental to the construction of a OCSD facility, such as financing, planning, designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. "Capital Facilities Capacity Charge" means a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the OCSD's system, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for OCSD facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose Discharge Permit. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the OCSD, and in the Building Department of each City within the OCSD. C. "Connection fee" means a fee equal to the cost necessary to physically connect a property to the OCSD's system, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection and which fee does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities. D. "Non-discriminatory" means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non-public users, and is not in excess of the proportionate share of the cost of the OCSD's facilities of benefit to the person or property being charged, based upon the proportionate share of use of those facilities. 572010.1 8 E. "Public agency" means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of California, a county, city, district, school district, local or regional public authority, or any other political entity, subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 2.07, 2.08, 2.09, and 2.10 of this Ordinance, is an annual charge payable to the OCSD on a quarterly or annual basis, as determined by the OCSD. Said charge is required to be paid by dischargers that exceed the maximum quantity of flow or constituents (BOD or SS) allowed as a base use for which the CFCC is paid. Section 2.03. Connection Permits: Required. A. Connection permits are required of each and every dwelling unit, and each commercial or industrial building, and structure connecting directly or indirectly to the OCSD's sewerage system facilities. Included are the connections of laterals to local municipal sewerage facilities, and the connection of local municipal sewerage facilities and laterals to the OCSD's facilities. Multiple detached structures on a single parcel of property shall each be required to obtain a connection permit. B. Except as authorized by the issuance of a Special Purpose Discharge Permit under Sections 305 — 305.6 of the OCSD's Wastewater Discharge Regulations, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, no permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the OCSD and within the boundaries of a local sewering agency authorized to maintain public sewering facilities. However, a permit, as authorized above, may be issued for property to be served outside the boundaries of a local sewering agency if a local sewering agency makes application for the issuance of such permit. There will be a non-discriminatory Capital Facilities Capacity Charge assessed to public agencies for connecting directly or indirectly to the OCSD's sewerage system facilities and a connection permit must be obtained. Section 2.04. Capital Facilities Capacity Charge: Payment Required. No application for a permit for a connection of a structure to an OCSD sewerage facility, or to any sewerage facility which discharges into an OCSD sewerage facility, shall be approved, nor a permit issued, until an OCSD Capital Facilities Capacity Charge is paid by the applicant, except as provided for discharges under a Special Purpose Discharge Permit. No connection permit shall be issued unless there is an established category of use of the property to be served or a valid building permit issued which establishes the category of use of said property. 172010.1 9 Section 2.05. Capital Facilities Capacity Charge: Time of Payment. A. Payment of the Capital Facilities Capacity Charge established by this Ordinance for connection to the OCSD's sewerage system facilities shall be required at the time of issuance of the building permit for all construction within the OCSD, excepting in the case of a building legally exempt from the requirement of obtaining a permit. The payment of the Capital Facilities Capacity Charge for such exempt buildings will be required at the time of and prior to the issuing of a plumbing connection permit for any construction within the territorial limits of the OCSD, or if none, prior to the issuance of a Certificate of Occupancy. B. Upon application of any property owner seeking to connect to the OCSD's system, the Board of Directors of OCSD, in its sole and absolute discretion and upon a finding of compelling need, may, pursuant to the authority of California Health & Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge and/or annexation fees in installment payments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the property. Section 2.06. Capital Facilities Capacity Charge and Plan Check and Inspection Fees: Schedule of Amounts. A. Every person or entity connecting any new or expanded building or structure to the OCSD's system facilities shall pay a Capital Facilities Capacity Charge in the amount for the applicable category of use set forth on Table A, below. B. Every person or entity connecting any new or expanded building or structure directly to the OCSD's local or regional system facilities shall pay Plan Check and Inspection Fees in the amount set forth on Table B, below. 572010.1 10 TABLE A CAPITAL FACILITIES CAPACITY CHARGES (CFCC) Use Category Rate Basis Base Charge Commercial— Industrial Per 1,000 square feet' Low Demand Per 1,000 square feet $ 272.00' Average Demand4 Per 1,000 square feet $1,692.00' High Demand Per 1,000 square feet $4,019.00' Single Family Residential (SFR)5 Base Charge 5+ Bedrooms $4,532.00 4 Bedrooms $3,881.00 3 Bedrooms $3,261.00 2 Bedrooms $2,640.00 1 Bedroom $2,019.00 Multi-Family Residential (MFR)6 Base Charge 4+ Bedrooms $3,523.00 3 Bedrooms $2,902.00 2 Bedrooms $2,281.00 1 Bedroom $1,630.00 Studio' $1,047.00 Supplemental CFCC for Permit Users, includes 5% cost of funds. Flow, gallons per day $0.001638 BOD, pounds per day $0.351200 SS, pounds per day $0.188340 Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $3,261; and all calculations shall be on a 1,000 square foot, or portion thereof, basis. 2Low Demand connections are the following categories of users: Nurseries; Warehouses; Churches; Truck Terminals; RV Parks, RV Storage Yards, Lumber/Construction Yards, Public Storage Buildings; and other facilities with restrooms, offices, lobbies and/or areas whose flows are similar in volume to these listed categories Parking Structures not connected to the sewer will not be charged. 3High Demand connections are the following categories of users: Restaurants (including patios used for additional seating capacity), Supermarkets; Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more Restaurants, or Food Court; Food Processing Facilities; Textile Manufacturers; and other dischargers whose flow is similar in volume to these listed categories. 4All other connections are Average Demand users including: Hotels, Strip Malls without restaurants, Music Halls without food facilities, Office buildings, Senior Housing with individual living units without kitchens but with a common kitchen,and wash pads 5 Bedroom additions are considered a change of use and a CFCC must be paid. Bedrooms include enclosed loft additions„ bonus rooms that may be used as offices, workout rooms, media rooms, or libraries, or any other additions, which could potentially be used as a bedroom. The classification of these additions will be reviewed and determined by staff Any detached building such as an addition over an existing garage or a new building with the same designation as mentioned above will be considered a separate living residence (SFR). 6MFR units consist of multiple units that receive one secured property tax bill such as apartments. Senior housing with individual living units that include a kitchen are considered MFR units. Studio — one single room with no separating doors or openings leading to another part of the room (except for a bathroom). 572010.1 1 1 TABLE B PLAN CHECK AND INSPECTION FEE TABLE INSPECTION FEES FOR SINGLE CONNECTIONS FEE Normal lateral installation to property line with clean out $500.00 Lateral Installation to existing manhole stub with clean out $500.00 Core drilling in to an existing manhole base - add $300.00 Installation of new manhole with stub over existing line $1,000.00 INSPECTION FEES FOR MULTIPLE CONNECTIONS Plan check and inspection fees of 20 percent of the sewer construction cost for new tract sewers, sewer extensions or special facilities are required when plans are submitted for plan check. If additional funds are needed, they must be deposited as soon as they are requested to complete the inspection on the project. If funds are required after the work is completed, they must be paid before OCSD finals the sewer project. Section2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users and Significant Special Purpose Dischargers — Definitions. A. A Significant Commercial — Industrial User ("SCIU") is any person or entity who discharges commercial or industrial process flow, but excluding domestic sewage flow, in an amount greater than 25,000 gallons per day ("gpd"), or Biochemical Oxygen Demand ("BOD") greater than 150 pounds per day, or Suspended Solids ("SS") greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Article 3 of the OCSD's Wastewater Regulations, due to having federally or OCSD regulated or significant discharges. B. A Significant Special Purpose Discharger ("SSPD") is any person or entity who discharges to the sewer system wastewater or process flow in an amount greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of the OCSD's Wastewater Regulations. A Special Purpose Discharger (SPD) discharges 25,000 gpd or less. C. An Existing SCIU or SSPD is any SCIU or SSPD connected and discharging to the OCSD's system prior to January 1, 2000. 572010.1 12 D. A New SCIU or SSPD is any user who connects and discharges to the OCSD's system pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraphs2.07A and B above, but, subsequent to January 1 , 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU or SSPD. E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table A, above, is 25,000 gallons per day ("gpd"), or 150 pounds each of BOD and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subsection2.07E shall be subject to the provisions of Sections 2.08 and 2.09 hereof. F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the OCSD as of January 1 , 2000. The baseline shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge data which the OCSD determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU's solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section 2.07A above, shall have a minimum baseline established as follows: Flow— 25,000 gallons per day; BOD — 150 pounds per day; and SS — 150 pounds per day. The SCIU shall be authorized to discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. G. Each Existing SPD shall have a baseline of 25,000 gpd. The Existing SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a Supplemental Capital Facilities Capacity Charge. H. The Supplemental Capital Facilities Capacity Charge, as prescribed by Sections 2.08, 2.09, and 2.10 below, shall be payable commencing with the effective date of this Ordinance. Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table A, for commercial — industrial use category properties, all New SCIU's shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge maximums, in the amount shown in Table C. Section 2.09. Supplemental Capital Facilities Capacity Charge: Significant Special Purpose Dischargers. All SSPDs shall pay a Supplemental Capital Facilities Capacity Charge of $.001638 per gallon per day for each gallon of flow exceeding 25,000 gallons per day. 172010.1 13 Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users and Special Purpose Dischargers. A. All Existing Significant Commercial — Industrial Users connected to and discharging to the OCSD's system shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd"), or 25% per day over its established baseline authorization, whichever is lesser; or (ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the discharger or OCSD. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section2.10A above. TABLE C SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge Flow Gallons Per Day $0.001638 BOD Pounds Per Day $0.351200 SS Pounds Per Day $0.188340 C. All Existing SPDs connected and discharging to the sewer shall be required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity Charge shall be $ 0.001638 per gallon per day of discharge for each gallon above 25,000 gpd. D. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User's baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the OCSD. Section 2.11. Capital Facilities Capacity Charge: Replacement Structures. For new construction replacing former structures, the Capital Facilities Capacity Charge shall be calculated and paid to the OCSD on the rate basis of the category of the new use and the amounts as set forth in Table A, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table A that would be for the prior category of use which was terminated and removed. 172010.1 14 Section 2.12. Capital Facilities Capacity Charge: Remodeled Structures. In the case of existing structures connected to the OCSD's system facilities, to which new construction or alteration is made to change or increase the category of use or number of bedrooms, a Capital Facilities Capacity Charge shall be calculated and paid to the OCSD on the rate basis of the category of the new use and the amounts as set forth in Table A, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table A for the prior category of use. Section 2.13. Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for connection to off-site sewers which are not included as part of the OCSD Master Plan and for which a Non-Master Plan Reimbursement Agreement has been entered into between the OCSD and the property owner, shall be paid in the amount provided for in said Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in said Agreement shall be the amount due, provided the original Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall be in addition to the other Capital Facilities Capacity Charges provided for in Sections 2.06 through 2.10 hereinabove, established for property connecting to said facilities. Section 2.14. No Refund or Transfer. A Capital Facilities Capacity Charge is paid for the connection of a specific building or structure on a parcel of property. No refund of any charge shall be made because of non-use or change of use, or any other reason once the connection has been made. If the connection is not made and the request for connection is withdrawn within 12 months of the payment date, the charges paid will be refunded upon establishing proof from the City or County of a canceled permit. The connection permit is non-transferable to any other parcel of property. Section 2.15. Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable, nor shall a credit for such previously existing baseline be provided to another SCIU concurrently or subsequently occupying the same property. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 2.08 above. Section 2.16 Capital Facilities Capacity Charge Annual Updates. The Capital Facilities Capacity Charge is based upon the most recently completed Master Plan. This charge is updated annually based upon the increase in the Engineering News-Record construction cost index for Los Angeles as of December of the prior year until the completion of the next Master Plan or Master Plan Update. Section 2.17 Affordable Housing Projects. Per Resolution 06-18, development projects that include lower income housing units shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for, unless the OCSD makes specific written 572010.1 15 findings that the denial, condition, or reduction is necessary due to the existence of one or more of the following: (a) insufficient water supply or insufficient water treatment or distribution capacity; (b) a State Department of Health Services order prohibiting new water connections; (c) insufficient sewer treatment or collection capacity; (d) a Regional Water Quality Control Board order prohibiting new sewer connections; (e) the applicant has failed to agree to reasonable terms and conditions. 172010.1 16 ARTICLE III MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 3.01. Purpose and Scope. The purpose of this Ordinance is to recover those costs incurred by the OCSD (i) on account of industrial dischargers' and wastehaulers' use of the OCSD's facilities; (ii) when administering the OCSD's Source Control Program; and (iii) when performing non-compliance sampling of industrial wastewater dischargers who have violated the OCSD's Wastewater Discharge Regulations or the terms and conditions of the discharger's permit. Revenues derived under the provisions of this Ordinance shall be used to defray the costs incurred by the OCSD (i) on account of such use of the OCSD's facilities; and (ii) in performing these tasks. Section 3.02. Administrative Fees and Charges Relating to Permittees. Administrative fees and charges relating to permittees are hereby established in the sum or sums as set forth in Table D, E, F, G, H, and I, below. Section 3.03. Source Control Non-Compliance Fees. Source control non- compliance fees are hereby established for dischargers' non-compliance sampling and for self-monitoring and data reporting non-compliance, in the sum or sums as set forth in Table E, below. Section 3.04. Special Purpose Discharge Permittees; Charges for Use. As authorized by Sections 305.5 and 305.6 of the OCSD's Wastewater Discharge Regulations, charges for use are hereby established for Special Purpose Discharge Permittees, as set forth in Table F, below. Section 3.05. Class I and Class II Permittees — Charges for Use. As authorized by Sections 302.3, 302.6, 303.3 and 303.6 of the OCSD's Wastewater Discharge Regulations, the charges for use are hereby established for Class I and Class II Permittees as set forth in Table F, below. Section 3.06. Wastehauler Charges for Use. As authorized by Sections 306.3 and 306.7 of the OCSD's Wastewater Discharge Regulations, the charges for use are hereby established for wastehaulers as set forth in Table G, below. Section 3.07. Administrative Appeals. A. Any user, permit applicant, or permittee affected by any decision, action, or determination by the OCSD may, within forty-five (45) days of the date of mailing by the OCSD of the initial invoice for fees imposed pursuant to this Ordinance, request that the OCSD reconsider imposition of such fees. Following review of such a 172010.1 17 request, the OCSD shall notify the user, permit applicant, or permittee by certified mail of the OCSD's decision on the reconsideration request. B. Any user, permit applicant, or permittee adversely affected by the OCSD's decision on the reconsideration request, may file an appeal in accordance with Sections 617 and 619 of the OCSD's Wastewater Discharge Regulations. TABLE D ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES Permit Fees Charges A. Class I Wastewater Discharge Permit $785.00/year B. Class II Wastewater Discharge Permit $170.00/year C. Special Purpose Discharge Initial Permit Issue $1,050.00/year Nonrefundable Deposit for First 1 Million As Defined in Gallons — New Permit Only Table F Special Purpose Discharge Permit Renewal $750.00/year D. Wastehauler Discharge Permit $190.00/year Wastehauler Fees Charges F. Permit Decal Initial Issue $25.00 G. Permit Decal Replacement $50.00 H. Entry Card Initial Issue $50.00 I. Entry Card Replacement $100.00 J. After Hours Discharge — Prearranged $102.00/event K. After Hours Discharge — Emergency $165.00.00/event Administrative/Processing Fees Charges L. OCSD's Collection of Tax Data $100.00/permit M. OCSD's Collection of Water Consumption Data $100.00/permit N. Appeal Hearing Filing Fee $400/appeal 172010.1 18 TABLE E INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES Charge Cost of Processing and Sampling Following a Minor Violation $225.00/event Cost of Processing and Sampling Following a Major Violation $500.00/event Cost of Analysis Charge Heavy Metals: $35.00/each - Aluminum - Antimony - Arsenic - Cadmium - Chromium - Copper - Gold - Lead - Molybdenum - Nickel - Palladrum - Platinum - Selenium - Silver - Thallium - Zinc Mercury $78.00 601/602 $152.00 604 $223.00 606 $254.00 608 $523.00 610 $73.00 612 $200.00 624 $355.00 625 $661 .00 172010.1 19 TABLE E (CONTINUED) INDUSTRIAL DISCHARGER, SOURCE CONTROLAND NON-COMPLIANCE SAMPLING FEES Charge Ammonia Analysis as Nitrogen $ 21.00 Biochemical Oxygen Demand (BOD) $ 44.00 BOD and Suspended Solids (SS) Analysis $ 67.00 Chemical Oxygen Demand $ 44.00 Conductivity $ 15.00 Cyanide (Amenable) $ 70.00 Dissolved Mineral Solids $ 15.00 Gamma Radiation Determination $115.00 Gross Alpha and Beta Determination $ 50.00 Tritium Determination $ 50.00 Oil & Grease (Hexane Soluble Matter) $ 74.00 Oil & Grease (Mineral Partition) $ 74.00 Total Organic Nitrogen $ 48.00 pH $ 8.00 Fluoride $ 51 .00 Suspended Solids (Total) $ 23.00 Suspended Solids (Total and Volatile) $ 44.00 Total Dissolved Solids $ 14.00 Total Sulfides $ 29.00 SELF-MONITORING AND DATA REPORTING NON-COMPLIANCE Cost of Processing and Issuing Significant Non-Compliance Notification $165.00 Cost of Processing Annual SNC and Publication $260.00 172010.1 20 TABLE F CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 Flow (*) $ 840.30 $ 924.40 $1,016.80 $1,116.50 $1,225.90 B.O.D. (**) $ 399.50 $ 439.40 $ 483.30 $ 530.70 $ 582.70 S.S. (***) $ 424.90 $ 467.30 $ 514.10 $ 564.50 $ 619.80 Special Purpose Discharge Permit FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 Flow (*) $ 840.30 $ 924.40 $1,016.80 $1,116.50 $1,225.90 (*) Flow Per million gallons of Flow (**) B.O.D. Per thousand pounds of Biochemical Oxygen Demand (***) S.S. Per thousand pounds of Suspended Solids All properties located within Revenue Area No. 14 pay no annual service fees. OCSD 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. 172010.1 21 TABLE G WASTEHAULER CHARGES FOR USE Wastehauler Fees Charges Charge for Use —Waste originating $0.05/gallon of truck capacity -within Orange County; -within service area; and -within OCSD Boundaries Charge for Use —Waste originating $0.12/gallon of truck capacity -within Orange County; -within service area and outside OCSD Boundaries Charge for Use — Waste originating $0.12/gallon of truck capacity -Outside Orange County; and within service area Waste hauled from a source that is not within the OCSD's service area is prohibited unless authorized by the General Manager. Service area is defined as any area the OCSD has an agreement to serve. 172010.1 22 ARTICLE IV MISCELLANEOUS Section 4.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the OCSD's Wastewater Discharge Regulations for use of OCSD's sewage facilities, including provisions for payment of charges or fees related thereto; OCSD's ordinance establishing Fees Concerning Annexations of Territory to the OCSD; and any other OCSD Ordinances and Resolutions not in conflict herewith. Section 4.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the OCSD, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. Section 4.03 Out of Area Sewer Service Agreements. The OCSD is empowered to contract for the transport, treatment and disposal of wastewaters originating within areas outside of the OCSD if it is in the best interest of the OCSD to do so. These Out of Area Sewer Service Agreements will establish fees and charges relative to the services provided by the OCSD for each individual agreement. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: Section II. Severability. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section III. Effective Date. This Ordinance shall take effect July 1, 2010. Section IV. Repeal. Ordinance No. OCSD-36 is hereby repealed. Section V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law. 572o 10.1 23 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held May 26, 2010. Chair, Board of Directors Orange County Sanitation District ATTEST: Clerk of the Board Bradley R. Hogin, General Counsel 172010.1 24