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
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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 ,
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Los Angeles County
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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
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County Boundary
0 Buena Park La Palma Ave.
County of Orange
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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
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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
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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
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• 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
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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
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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
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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
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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).
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• 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
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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.
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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.
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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
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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
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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
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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".
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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].
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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
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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%)
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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%)
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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%)
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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
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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