The URL can be used to link to this page

Home My WebLink About11-18-2009 Board Agenda Packet AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ADMINISTRATIVE OFFICE REGULAR MEETING November 18, 2009 — 6:30 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE (John Withers — Irvine Ranch Water District) 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. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 10/15/09 10/31/09 Totals $14,350,500.64 $17,477,950.52 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. CONSENT CALENDAR (2) Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 2. Approve the minutes for the special meeting held on October 21, 2009, and the regular meeting held on October 28, 2009. 11/18/09 Page 2 STEERING COMMITTEE (3 - 5) 3. Order Steering Committee Minutes for the regular meeting held on September 23, 2009 to be filed. 4. a) Approve the Five-Year Strategic Plan dated November 2009; and, b) Direct staff to implement goals and strategies contained in the Plan. 5. Approve Amendment No. 2 to Agreement Acquiring Ownership Interests, Assigning Rights and Establishing Obligations with Irvine Ranch Water District, in a form approved by General Counsel. OPERATIONS COMMITTEE (6 — 8) 6. Order Operations Committee minutes for the meeting held on November 4, 2009 to be filed. 7. Approve a Reimbursement Agreement with the City of Newport Beach for construction of Bayside Drive Improvement, Contract No. 5-61, in a form approved by General Counsel. 8. Authorize staff to enter into negotiations with RBF Consulting for construction support services for the Temporary Upgrades to Plant Security Barriers, Project No. J-108. ADMINISTRATION COMMITTEE (10 - 11) 9. Order Administration Committee minutes for the regular meeting held on November 4, 2009 to be filed. 10. Receive and file: a) Comprehensive Annual Financial Report for the year ended June 30, 2009, prepared by staff and audited by Mayer Hoffman McCann, Certified Public Accountants; b) Report on Compliance and Internal Control for the year ended June 30, 2009; and; c) Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. GWR SYSTEM STEERING COMMITTEE (11) 11. Approve Joint Groundwater Replenishment System Steering Committee minutes for the meeting held on October 12, 2009, to be filed. 11/18/09 Page 3 NON-CONSENT CALENDAR (13) 12. a) Approve a budget increase of $250,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of$11,275,000; and, b) Approve a contingency increase of$117,700 (2%) to the construction contract with Norm A. Olsson Construction, Inc., for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total contingency of $588,500 (10%). 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 Reconvene in regular session 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 December 16, 2009, at 6:30 p.m. 11/18/09 Page 4 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 ocsd.com Clerk of the Board Penny Kyle (714)593-7130 pkyle(a-)ocsd.com Director of Engineering Jim Herberg (714)593-7300 jherberg(@ocsd.com Director of Fin. &Admin Services Lorenzo Tyner (714)593-7550 Ityner ocsd.com Director of Operations& Nick Arhontes (714)593-7210 narhontes(LDocsd.com Maintenance Director of Technical Services Ed Torres (714)593-7080 etorres(o)ocsd.com :...General Counsel.............................................Brad ... ...................................... ......bhoc in.. wss-law.com.................................. H:\dept\agenda\Board Agendas\2009 Board Agendas\1 1 1809.agenda.docx BOARD OF DIRECTORS Meeting Date To B 11/18/09 AGENDA REPORT Item Number Item Number 1 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 10/01/09 - 10/15/09 and 10/16/09 - 10/31/09 Form No.DW-102-4 Agenda Report—Board Revised: 12/06/06 Pagel Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 24918 $ 4,130.32 Mechanical Parts&Supplies ABG Acquisition Corporation 24919 259.17 Office Supplies&Stationary Adamson Industries 24920 741.89 Safety,Security,Health Equipment,Supplies,and Services ADS Environmental Services, Inc. 25098 4,900.00 Professional Services/Influent Flow Monitoring Advance Contractor&Inspector Training 24921 2,211.20 Professional Organizations Meeting/Training/Memberships Aerotek 25099 1,797.25 Professional Services/Temporary Services Airgas Safety, Inc. 24922 11,881.02 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety, Inc. 25100 9,278.22 Safety,Security,Health Equipment,Supplies,and Services Alhambra Foundry Co., Ltd. 24923 16,622.44 Repair&Maintenance Services and/or Supplies Allied Packing&Rubber, Inc. 24924 1,226.70 Repair&Maintenance Services and/or Supplies Allied Packing&Rubber, Inc. 25101 46.99 Repair&Maintenance Services and/or Supplies American Express 25080 29,103.85 Purchasing Card Program for Miscellaneous Parts and Supplies American Machinery&Blade, Inc. 24925 90.34 Repair&Maintenance Services and/or Supplies American Payroll Association 25102 890.00 Professional Organizations Meeting/Training/Memberships American Society of Civil Engineers 25103 250.00 Professional Organizations Meeting/Training/Memberships American Training Resources, Inc. 24926 548.26 Safety,Security,Health Equipment,Supplies,and Services Ann H.Brandvoid 25244 158.83 Meeting/Training Expense Reimbursement AppleOne Employment Service 25104 758.64 Professional Services/Temporary Services ARK Technologies 25105 24,392.16 Computer Applications&Services ARS Enterprises, Inc. 25106 675.00 Laboratory Services&Supplies Ashbrook Simon Hartley Operations 25107 10,593.20 Repair&Maintenance Services and/or Supplies AT&T 25097 216.85 Telecommunications AT&T Mobility II, L.L.C. 25109 9,955.65 Telecommunications AT&T Universal Biller 25108 7,056.99 Telecommunications Atlas Underground, Inc. 24927 3,500.00 Repair&Maintenance Services and/or Supplies Aurora Pictures, Inc. 24928 1,748.00 Safety,Security,Health Equipment,Supplies,and Services Austin Building and Design dba The Austin Co. 24929 1,427.22 Professional Services/Engineering Design Services Avi-Con Inc.,dba CA Construction 25092 61,505.10 Construction Bainbridge Tech Associates 25110 613.00 Computer Applications&Services Basic Chemical Solutions, L.L.C. 24930 17,187.02 Chemicals,Water/Wastewater Treatment Bear Communications Inc 25111 98.39 Computer Hardware&Software Best Contracting Services, Inc. 24931 1,313.89 Repair&Maintenance Services and/or Supplies Biospherical Instruments, Inc. 25112 552.00 Repair&Maintenance Services and/or Supplies Black&Veatch Corporation 25081 67,817.88 Professional Services/Engineering Design Services Blue Cross of California 24908 553,671.32 Employee Benefits Blue Diamond Car Wash, Inc. 25113 1,414.00 Facilities, Maintenance,Services&Supplies BP Energy Company 25114 15,705.31 Natural Gas Brown&Caldwell 17 112,920.86 Professional Services/Engineering Design Services Buck Sales, Inc.dba BSI Controls 24932 5,248.57 Repair&Maintenance Services and/or Supplies Bush&Associates, Inc. 24933 2,636.00 Professional Services/Surveying Services CALAFCO 25259 4,600.00 Governmental Agency Fees&Charges California Auto Collision 25115 1,608.11 Autos,Trucks&Marine Equipment,Parts,Accessories&Services California Contract Commercial Designs 24934 2,209.43 Safety,Security,Health Equipment,Supplies,and Services California Department of Public Health 24935 25.00 Professional Organizations Meeting/Training/Memberships California Dept.of Child Support 24936 1,688.75 Judgments Payable California Municipal Revenue&Tax Assoc. 25116 60.00 Professional Organizations Meeting/Training/Memberships California Recreation Company 24937 2,991.23 Boat Slip Rental-Nerissa Ocean Monitoring Vessel California Relocation Services, Inc. 24938 135.00 Miscellaneous Services-Moving/Relocation Caltrol, Inc. 24939 594.13 Electrical/Electronic Equipment,Parts&Repairs EXHIBIT A fin/210/Ic Page 1 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Camali Corp. 25117 4,230.60 Repair&Maintenance Services and/or Supplies Cambridge Isotope Labs 25118 898.96 Laboratory Services&Supplies Camfil Farr Sales 24940 487.69 Repair&Maintenance Services and/or Supplies Camp Dresser&McKee, Inc. 24941 2,499.44 Professional Services/Engineering Design Services CAPPO Conference Registration 25119 45.00 Professional Organizations Meeting/Training/Memberships Carollo Engineers 24942 1,611.00 Professional Services/Engineering Design Services Cavcom, Inc. 25120 1,029.59 Telecommunications Equipment/Supplies Circle, Inc. 24943 1,809.37 Copier Toner/Ink Supplies Circle, Inc. 25121 489.38 Copier Toner/Ink Supplies City of Cypress 25251 475.00 Reconciliation User Fee Refund Program City of Fountain Valley 25077 840.00 Water Use City of Huntington Beach 25154 13.30 Water Use Clean Harbors Environmental Services 24944 9,663.66 Grit&Screenings; Hazard Waste Disposal Coast Rubber Stamp, Mfg. 25122 199.12 Stationery&Office Supplies Columbia Analytical Services 24945 3,450.00 Laboratory Services&Supplies Columbia Analytical Services 25123 588.00 Laboratory Services&Supplies Comm Vault Systems, Inc. 24946 5,000.00 Computer Hardware/Software Compsych Corporation 24947 2,831.40 Employee Benefits Connell Chevrolet\GEO 24948 718.06 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Consumers Pipe&Supply Co. 24949 2,223.86 Repair&Maintenance Services and/or Supplies Consumers Pipe&Supply Co. 25124 1,189.95 Repair&Maintenance Services and/or Supplies Corina M.Chaudhry 25070 179.55 Meeting/Training Expense Reimbursement Corporate Business Interiors 24950 7,533.11 Furniture/Fixtures Corporate Express 25125 72.90 Office Supplies Corporate Image Maintenance, Inc. 24909 35,995.00 Janitor&Household Service&Supplies CORRPRO Companies, Inc. 24910 25,012.50 Professional Services/Temporary Services CORRPRO Companies, Inc. 25082 30,339.00 Professional Services/Temporary Services County of Orange 24951 100.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25252 645.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25253 675.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25254 1,050.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25255 1,890.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25256 585.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25257 765.00 Governmental Agency Fees&Charges Court Order 24991 150.00 Judgments Payable Court Order 24998 225.00 Judgments Payable Court Order 25027 108.00 Judgments Payable Court Order 25067 912.50 Judgments Payable Crane Veyor Corp. 24952 2,436.00 Repair&Maintenance Services and/or Supplies CSAC Excess Insurance Authority 25126 1,157.00 Insurance CS-AMSCO 25083 64,053.90 Repair&Maintenance Services and/or Supplies CWEA Annual Conference 25127 480.00 Professional Organizations Meeting/Training/Membership Darrell S. Ennis 25078 2,000.00 Employee Computer Loan Program David Gutoff 24953 225.00 Laboratory Services&Supplies David's Tree Service 24954 4,950.00 Groundskeeping David's Tree Service 25128 9,100.00 Groundskeeping Delta Dental 24911 67,803.98 Employee Benefits DLT&V Systems Engineering, Inc. 25084 86,133.58 Professional Services/Engineering Design Services Double D Painting 24955 3,635.00 Painting Services Double D Painting 25129 9,595.00 Painting Services EXHIBIT A fin/210/Ic Page 2 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Douglass S. Davert 25258 1,480.49 Meeting/Training Expense Reimbursement Drake Controls-West, L.L.C. 25130 6,351.68 Repair&Maintenance Services and/or Supplies Dudek&Associates, Inc. 25131 7,602.00 Professional Services/Engineering Design Services Dunn-Edwards Corporation 24956 126.71 Painting Services and Supplies EMEDCO 24957 411.30 Safety,Security,Health Equipment,Supplies,and Services Employee Benefits Specialists, Inc. 24958 12,343.80 Reimbursed Prepaid Employee Medical&Dependent Care Employers Group 25132 295.00 Professional Organizations Meeting/Training/Memberships Enchanter, Inc. 25133 3,040.00 Vessel Services-Monitoring Vessel Nerissa Entech Design, Inc. 24959 2,623.96 Electrical/Electronic Equipment,Parts&Repairs Environmental Engineering&Contracting 25134 10,000.00 Professional Services/Specialty Course Audits Environmental Network Corp. 24960 14,980.00 Industrial Hygiene Services Environmental Resource Center 24961 795.00 Safety,Security,Health Equipment,Supplies,and Services Ewing Irrigation 24962 1,720.82 Irrigation Repair&Maintenance Services and/or Supplies Ewing Irrigation 25135 2,865.61 Irrigation Repair&Maintenance Services and/or Supplies Express Lens Lab 24963 2,009.62 Safety,Security,Health Equipment,Supplies,and Services Fedex Corporation 24964 19.04 Freight Services Fedex Corporation 25136 35.91 Freight Services Fisher Scientific 24965 333.16 Laboratory Services&Supplies Fisher Scientific 25137 826.95 Laboratory Services&Supplies Flat&Vertical, Inc. 25138 360.00 Repair&Maintenance Services and/or Supplies FLW, Inc. 24966 1,543.90 Electrical/Electronic Equipment,Parts&Repairs Forkert Engineering&Surveying, Inc. 25139 4,938.75 Professional Services-Surveying Franchise Tax Board 24967 50.00 Governmental Agency Fees&Charges Frasco Profiles 25140 158.80 Professional Services/Human Resources Frys Electronics 24968 417.52 Computers,Software/Hardware Frys Electronics 25141 52.18 Computers,Software/Hardware Future Computing Solutions, Inc. 25142 868.91 Computers,Software/Hardware Garland Associates, Inc. 24969 900.00 Professional Services-Parking Lot Study Garland Manufacturing Co. 24970 897.40 Repair&Maintenance Services and/or Supplies Gary Lynn Aguirre,Jr. 24971 8,062.66 Final Payment Gates Fiberglass Installers 24972 4,915.63 Repair&Maintenance Services and/or Supplies Getinge Castle 25143 246.03 Laboratory Services&Supplies GHD, L.L.C. 25144 10,510.00 Professional Services/Engineering Design Services Gierlich-Mitchell, Inc. 25145 3,358.44 Repair&Maintenance Services and/or Supplies Golden State Overnight Delivery Service 25146 293.14 Courier Services Golden West Window Service 24973 750.00 Facilities, Maintenance,Services&Supplies Golden West Window Service 25147 8,917.00 Facilities, Maintenance,Services&Supplies Government Finance Officers Association 24905 670.00 Professional Organizations Meeting/Training/Memberships Government Finance Officers Association 25148 55.00 Professional Organizations Meeting/Training/Membership Grainger, Inc. 24974 1,364.74 Repair&Maintenance Services and/or Supplies Grainger, Inc. 25149 744.13 Repair&Maintenance Services and/or Supplies Graybar Electric Company 24975 4.68 Electrical/Electronic Equipment,Parts&Repairs Graybar Electric Company 25150 8,842.01 Electrical/Electronic Equipment,Parts&Repairs GrayD-A Metal Fabricators 24976 3,451.73 Facilities, Maintenance,Services&Supplies GTE.NET,L.L.C. (Verizon Online) 25231 100.98 Telecommunications Hach c/o Ponton Industries 24977 2,414.82 Laboratory Services&Supplies Hach c/o Ponton Industries 25151 1,223.58 Laboratory Services&Supplies Harrington Industrial Plastics, Inc. 25152 2,934.48 Repair&Maintenance Services and/or Supplies Health Science Associates 24978 3,252.50 Safety,Security,Health Equipment,Supplies,and Services Helix Electric, Inc. 25093 55,145.98 Construction EXHIBIT A fin/210/Ic Page 3 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Hill Brothers 22 79,402.65 Chemicals,Water/Wastewater Treatment Home Depot 24979 485.04 Miscellaneous Parts and Supplies Home Depot 25153 64.14 Miscellaneous Parts and Supplies Hub Auto Supply 24980 312.94 Autos,Trucks&Marine Equipment,Parts,Accessories&Services IECOC 25155 50.00 Professional Organizations Meeting/Training/Membership IEEE Institute of Electrical&Electron 25156 196.00 Professional Organizations Meeting/Training/Membership Indiana Child Support Bureau 24981 290.00 Judgments Payable Industrial Distribution Group 24982 547.75 Repair&Maintenance Services and/or Supplies Industrial Distribution Group 25157 484.56 Repair&Maintenance Services and/or Supplies Industrial Fabrics Corp. 24983 14,668.20 Repair&Maintenance Services and/or Supplies Industrial Fabrics Corp. 25158 293.10 Repair&Maintenance Services and/or Supplies Industrial Threaded Products, Inc. 25159 56.96 Repair&Maintenance Services and/or Supplies Ingrid G.Hellebrand 25248 385.27 Meeting/Training Expense Reimbursement Inorganic Ventures, Inc. 25160 101.64 Laboratory Services&Supplies Inplant Sales, L.L.C. 24984 2,315.70 Repair&Maintenance Services and/or Supplies Intercare Holdings Insurance Svcs., Inc. 25161 2,916.67 Workers'Compensation Service Internal Revenue Service 24985 125.00 Governmental Agency Fees&Charges International Business Machines 25085 111,531.74 Computer Applications&Services Intl. Union of Oper. Eng.AFL CIO Local 501 24986 4,815.37 Dues Deductions Invensys Systems, Inc. 25162 2,869.02 Electrical/Electronic Equipment,Parts&Repairs Irvine Pipe&Supply 24987 15.79 Repair&Maintenance Services and/or Supplies J F Shea Construction, Inc. 25094 351,774.03 Construction James D.Herberg 25249 800.00 Meeting/Training Expense Reimbursement James L. Burror 25068 198.00 Meeting/Training Expense Reimbursement Jamison Engineering Contractors, Inc. 25163 8,416.00 Professional Services/Engineering Design Services Jays Catering 25164 566.92 Catering Services JCI Jones Chemicals, Inc. 18 50,794.19 Chemicals,Water/Wastewater Treatment JCI Jones Chemicals, Inc. 23 77,291.00 Chemicals,Water/Wastewater Treatment John Wiley&Sons, Inc. 24988 91.00 Books and Publications JWC Environmental 24989 2,863.04 Electrical/Electronic Equipment,Parts&Repairs Kaiser Foundation Health Plan 24912 99,059.51 Employee Benefits Kelly J.Christensen 25071 223.00 Meeting/Training Expense Reimbursement Kemira Water Solutions, Inc. 19 199,346.97 Chemicals,Water/Wastewater Treatment Kemira Water Solutions, Inc. 24 51,261.16 Chemicals,Water/Wastewater Treatment Kiewit Pacific Co. 25095 6,327,856.00 Construction L.Johnson Painting 24990 450.00 Painting Services and Supplies Labelmaster 25165 195.86 Office Supplies Lance Soll and Lunghard 25166 801.25 Professional Services-Auditing Laura L. Hass 25072 144.46 Meeting/Training Expense Reimbursement Layne T.Baroldi 25243 346.93 Meeting/Training Expense Reimbursement Liberty Mutual Claims 24906 11,367.17 Insurance Liberty Mutual Claims 24907 8,236.32 Insurance Liberty Mutual Claims 25086 75,322.42 Insurance Linda Losurdo 25073 105.00 Meeting/Training Expense Reimbursement Los Angeles County 25167 2,177.50 Governmental Agency Fees&Charges Lucci's Gourmet Foods, Inc. 24992 73.86 Catering Services Malcolm Pirnie, Inc. 24993 8,212.64 Professional Services/Engineering Design Services Malcolm Pirnie, Inc. 25087 79,612.98 Professional Services/Engineering Design Services Mandic Motors 25168 125.00 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Materials and Contract Services 25169 4,464.00 Professional Services/Temporary Services EXHIBIT A fin/210/Ic Page 4 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Mayer Hoffman McCann, PC 25170 21,012.00 Professional Services-Auditing McMaster-Carr Supply Co. 24994 3,937.75 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 25171 30.69 Repair&Maintenance Services and/or Supplies Michael I.Gold 25246 807.58 Meeting/Training Expense Reimbursement Micro Motion, Inc. 24995 2,988.38 Electrical/Electronic Equipment,Parts&Repairs Midway Mfg.&Machining Co. 24996 10,070.25 Repair&Maintenance Services and/or Supplie Mine Safety Appliance 24997 41.58 Electrical/Electronic Equipment,Parts&Repairs Miron Electric Construction Corp. 25240 7,515.00 Construction Mountain View Tire&Service 25172 3,826.80 Autos,Trucks&Marine Equipment,Parts,Accessories&Services MRC Technologies, Inc. 24999 2,184.39 Flow Meter MVA Architects 25000 9,080.59 Professional Services/Engineering Design Services MWH Americas, Inc. 24913 205,532.87 Professional Services/Engineering Design Services National Bond&Trust 25001 2,064.94 U.S.Savings Bonds Payroll Deductions Navigant Consulting, Inc. 25002 11,095.66 Professional Services/Engineering Design Services Neal Supply Co. 25173 1,869.26 Repair&Maintenance Services and/or Supplies Neutron Products, Inc. 25003 6,294.02 Chemicals,Water/Wastewater Treatment Newark Electronics 25004 323.51 Electrical/Electronic Equipment,Parts&Repairs NHRA-National Human Resources Assoc. 25174 597.00 Professional Organizations Meeting/Training/Membership Niagra Plumbing 25175 564.37 Repair&Maintenance Services and/or Supplies Nickell Metal Spray 25005 1,630.00 Repair&Maintenance Services and/or Supplies Nickell Metal Spray 25176 2,076.00 Repair&Maintenance Services and/or Supplies Norman A.Olsson Construction, Inc. 24915 255,555.00 Construction Norman A.Olsson Construction, Inc. 24917 61,680.60 Construction NRG Engine Services, L.L.C. 25006 4,286.37 Repair&Maintenance Services and/or Supplies O C Tanner Recognition Company 25177 1,645.85 Service Awards OCEA 25007 624.93 Dues Deductible Ocean Test Equipment, Inc. 25178 1,146.75 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Office Depot 25008 81.35 Office Supplies Office Depot 25179 2,062.73 Office Supplies OfficeMax Contract, Inc./OM Workspace 25009 999.84 Purchase and Installation of Systems/Modular Furniture Olin Corporation 25010 12,805.59 Chemicals,Water/Wastewater Treatment OMI Industries 25180 1,115.00 Chemicals,Water/Wastewater Treatment OneSource Distributors, Inc. 25011 4,144.71 Electrical/Electronic Equipment,Parts&Repairs Orange Community Bank 24916 28,395.00 Construction, Retention Orange Community Bank 25076 6,853.40 Construction, Retention Orange County Sanitation District 25079 1,470.26 Petty Cash Expense Orange County United Way 25012 60.00 Employee Contributions Oxygen Service Company 25013 466.44 Laboratory Services&Supplies Oxygen Service Company 25181 1,482.34 Laboratory Services&Supplies Pace Precision Products, Inc. 25014 4,359.72 Repair&Maintenance Services and/or Suppliess Pagentry World, Inc. 25015 91.41 Sales Tax on Invoices 2597&4057 Parker Supply Company 25016 2,438.65 Miscellaneous Parts and Supplies Parkhouse Tire, Inc. 25182 1,182.46 Autos,Trucks&Marine Equipment,Parts,Accessories&Services PBS&J 25088 30,173.91 Professional Services/Engineering Design Services PCS Express, Inc. 25017 126.34 Courier Services Peace Officers Council of CA 25018 2,219.50 Dues Deductions,Supervisors&Professionals Peter Cheffs 25245 137.00 Meeting/Training Expense Reimbursement PL Hawn Company, Inc. 25183 786.27 Repair&Maintenance Services and/or Supplies Plumbers Depot, Inc. 25184 114.19 Repair&Maintenance Services and/or Supplies Polydyne, Inc. 20 34,004.81 Chemicals,Water/Wastewater Treatment EXHIBIT A fin/210/Ic Page 5 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Praxair, Inc. 25019 72.02 Laboratory Services&Supplies Primrose Ice Co., Inc. 25020 110.00 Water&Ice Services Procare Work Injury Center 25021 120.00 Medical Services Propipe Professional Pipe Services 25022 5,891.27 Professional Services/Sewerline Cleaning Prudential Overall Supply 25023 1,360.04 Uniforms Prudential Overall Supply 25185 1,349.34 Uniforms Putzmeister America, Inc. 25186 480.09 Repair&Maintenance Services and/or Supplies Q Air-Calif.Div.Pump Engineering 25024 4,815.45 Repair&Maintenance Services and Supplies Q Air-Calif.Div.Pump Engineering 25187 65.00 Repair&Maintenance Services and Supplies Quickstart Intelligence 25025 2,995.00 Professional Organizations Meeting/Training/Memberships Quinn Power System Assoc. 25026 398.11 Repair&Maintenance Services and/or Supplies Rainbow Disposal Co. 25188 3,779.48 Waste Disposal Rainin Instrument, L.L.C. 25189 354.69 Laboratory Services&Supplies RBF Consulting 25028 20,654.72 Professional Services/Engineering Design Services RBF Consulting 25190 7,821.62 Professional Services/Engineering Design Services Recruiting.Com, Inc. 25191 395.00 Notices&Ads Red Wing Shoes 25029 170.00 Safety,Security,Health Equipment,Supplies,and Services Richard A.Castillon 25069 50.00 Meeting/Training Expense Reimbursement Richard L.Spencer 25075 100.36 Meeting/Training Expense Reimbursement RMS Engineering&Design, Inc. 25030 3,197.50 Professional Services/Engineering Design Services Rockhurst College Continuing Education 25192 50.00 Professional Organizations Meeting/Training/Membership Rockwell Engineering&Equipment Co. 25031 7,492.11 Repair&Maintenance Services and/or Supplies Rockwell Engineering&Equipment Co. 25193 7,242.75 Repair&Maintenance Services and/or Supplies RPM Electric Motors 25194 897.00 Repair&Maintenance Services and/or Supplies Ryan Herco Products Corp. 25195 536.18 Repair&Maintenance Services and/or Supplies Safety Max 25032 645.88 Safety,Security,Health Equipment,Supplies,and Services Safetycare, Inc. 25033 271.87 Safety,Security,Health Equipment,Supplies,and Services San Diego/Orange Fluid System Technologies, Inc. 25196 1,009.58 Repair&Maintenance Services and/or Supplies SAWPA(Santa Ana Water Protection Agency) 25089 68,610.81 Governmental Agency Fees&Charges Saybolt, L.P. 25197 1,220.00 Lab Analyses Sea Bird Electronics, Inc. 25034 3,185.00 Laboratory Services&Supplies Seton Name Plate 25198 424.45 Signage Supplies Shamrock Supply Co., Inc. 25035 857.22 Repair&Maintenance Services and/or Tools and Supplies Shamrock Supply Co., Inc. 25199 3,757.18 Repair&Maintenance Services and/or Tools and Supplies Shimmick Construction Co., Inc. 25096 1,151,903.84 Construction Shureluck Sales&Engineering 25036 1,649.07 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 25200 1,206.71 Repair&Maintenance Services and/or Supplies Simon L.Watson 25250 254.05 Meeting/Training Expense Reimbursement Smith-Emery Company 25037 39.27 Professional Services/Geotech&Material Testing Smith-Emery Company 25201 10,973.11 Professional Services/Geotech&Material Testing Snap On Tools 25202 162.04 Repair&Maintenance Services and/or Supplies So Cal Gas Company 25203 8,204.75 Utilities South Coast Construction Services 25038 4,800.00 Repair&Maintenance Services and/or Supplies Southern California Edison 25039 26.77 Utilities Southern California Edison 25204 2,015.61 Utilities Southern Counties Lubricants 25040 9,846.38 Fuel and Lubricants Southwest Scientific, Inc. 25041 400.00 Laboratory Services&Supplies Sparkletts 25205 464.40 Miscellaneous Supplies Sparling Instruments, Inc. 25042 10,766.25 Electrical/Electronic Equipment,Parts&Repairs Stanley Steamer International, Inc. 25043 1,137.80 Janitor&Household Service&Supplies EXHIBIT A fin/210/Ic Page 6 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Staples 25206 841.40 Office Supplies Staples Direct 25044 1,149.04 Office Supplies Stephen Patrick Myers 25050 310.00 Miscellaneous Pool Services Steve Grande 25247 130.00 Meeting/Training Expense Reimbursement Summit Steel 25045 1,189.08 Repair&Maintenance Services and/or Supplies Sunset Ford 25046 43.97 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Sunset Industrial Parts 24914 27,621.28 Repair&Maintenance Services and/or Supplies Sunset Industrial Parts 25207 2,464.99 Repair&Maintenance Services and/or Supplies Synagro West, Inc. 25 316,956.83 Biosolids Management TekSystems 25208 1,248.00 Professional Services/Temporary Services Teledyne Instruments/Impulse, Inc. 25209 255.27 Laboratory Services&Supplies Terminix International Pest Control 25210 400.00 Pest Control Services Terminix International Pest Control 25211 495.00 Pest Control Services Terra Renewal, L.L.C. 25212 1,686.81 Grit&Screenings Disposal Terry H.Ahn 25242 326.20 Meeting/Training Expense Reimbursement TestAmerica 25213 498.00 Laboratory Services&Supplies TestAmerica Ontario 25047 634.00 Laboratory Services&Supplies The Integration Works, L.L.C. 25048 1,598.00 Repair&Maintenance Services and/or Supplies The Integration Works, L.L.C. 25214 1,602.00 Repair&Maintenance Services and/or Supplies The Training Clinic 25220 3,336.30 On-Site Training Classes The Unisource Corporation 25054 9,918.00 Paper&Office Supplies The Wackenhut Corporation 25061 20,745.02 Safety,Security,Health Equipment,Supplies,and Services The Wackenhut Corporation 25237 13,841.10 Safety,Security,Health Equipment,Supplies,and Services Thompson Industrial Supply, Inc. 25049 880.23 Repair&Maintenance Services and/or Supplies Thompson Industrial Supply, Inc. 25215 1,578.32 Repair&Maintenance Services and/or Supplies T-Mobile 25216 108.18 Telecommunications Todd Painting, Inc. 25217 1,877.00 Painting Services and Supplies Townsend Public Affairs 25218 7,500.00 Professional Services-State Advocacy Traffic Control Service, Inc. 25219 118.17 Safety,Security,Health Equipment,Supplies,and Services Tran Consulting Engineers 25051 4,262.04 Professional Services Triad Pacific 25052 550.00 Freight Truck&Auto Supply, Inc. 25221 849.30 Autos,Trucks&Marine Equipment,Parts,Accessories&Services TSI, Inc. 25053 17,814.08 Safety,Security,Health Equipment,Supplies,and Services Tule Ranch/Magan Farms 25090 98,227.67 Biosolids Management TW Telecom Holdings, Inc. 25222 4,929.68 Telecommunications U Line 25223 317.32 Miscellaneous Parts and Supplies Union Bank of California Escrow 25241 18,514.42 Construction, Retention United Pacific Services, Inc. 25055 17,067.51 Groundskeeping United Pacific Services, Inc. 25224 16,467.51 Groundskeeping United Parcel Service 25056 115.30 Parcel Services United Parcel Service 25225 35.30 Freight Services United Power Service, Inc. 25226 294.00 Repair&Maintenance Services and/or Supplies Univar USA 25057 924.25 Repair&Maintenance Services and/or Supplies US Peroxide, L.L.C. 25091 54,226.31 Chemicals,Water/Wastewater Treatment Vapex, Inc. 25227 3,637.69 Electrical/Electronic Equipment,Parts&Repairs Varian, Inc. 25228 832.42 Laboratory Services&Supplies Verizon California 25229 818.64 Telecommunications Verizon California 25230 1,660.64 Telecommunications Verizon Wireless 25232 720.16 Telecommunications Verne's Plumbing 25058 1,200.00 Plumbing Services&Supplies EXHIBIT A fin/210/Ic Page 7 of 8 11/9/2009 Claims Paid From 10/01/09 to 10/15/09 Vendor Warrant No. Amount Description Verne's Plumbing 25233 175.00 Plumbing Services&Supplies Victor A.Salinas 25074 632.74 Meeting/Training Expense Reimbursement Vision Service Plan CA 25234 9,699.00 Employee Benefits Voided Check 21 - - Vortex Corp. 25059 2,239.10 Repair&Maintenance Services and/or Supplies Vortex Corp. 25235 1,873.77 Repair&Maintenance Services and/or Supplies VWR Scientific Products 25060 222.52 Laboratory Services&Supplies VWR Scientific Products 25236 599.70 Laboratory Services&Supplies Waxie Sanitary Supply 25062 79.26 Janitor&Household Service&Supplies WEF 25063 571.00 Professional Organizations Meeting/Training/Memberships West Lite Supply Company, Inc. 25064 35.56 Electrical/Electronic Equipment,Parts&Repairs Wild Rivers Waterpark 25260 1,273.00 Reimbursed Employee Activities Xerox Corporation 25065 1,180.06 Computers,Software/Hardware&Managed Services Xerox Corporation 25238 554.04 Computers,Software/Hardware&Managed Services Yale/Chase Materials Handling, Inc. 25066 462.46 Electrical/Electronic Equipment,Parts&Repairs Yale/Chase Materials Handling, Inc. 25239 350.19 Electrical/Electronic Equipment,&Electric Cart Parts&Repairs Total Accounts Payable-Warrants $ 11,967,612.03 Payroll Disbursements Employee Paychecks 43043 - 43073 $ 5,508.00 Interim Payroll-ARBA(10/01/09) Employee Paychecks 43074 - 43135 115,850.98 Biweekly Payroll(10/07/09) Employee Paychecks 43136 43138 2,299.90 Interim Payroll-Retro(10/06/09) Employee Paychecks 43139 43142 11,143.43 Interim Payroll-EE&Terminations(10/07/09, 10/09/09,&10/13/09) Direct Deposit Statements 177839 -177938 23,986.62 Interim Payroll-ARBA(10/01/09) Direct Deposit Statements 177939 -178526 1,430,837.22 Biweekly Payroll(10/07/09) Total Payroll Disbursements $ 1,589,626.15 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 793,262.46 Biweekly Payroll(10/07/09) Total Wire Transfer Payments $ 793,262.46 Total Claims Paid 10/01/09-10/15/09 $ 14,350,500.64 EXHIBIT A fin/210/Ic Page 8 of 8 11/9/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 25503 $ 2,645.18 Mechanical Parts&Supplies Absolute Standards,Inc. 25276 75.00 Laboratory Services&Supplies Absolute Standards,Inc. 25513 700.00 Laboratory Services&Supplies Advance Tech Plating#2 25504 38.65 Reconciliation User Fee Refund Program AECOM Technical Services,Inc. 25261 36,468.80 Professional Services/Engineering Design Services Aecom USA,Inc. 25262 90,000.00 Professional Services/Engineering Design Services Aerotek 25514 4,108.00 Professional Services/Temporary Services Agilent Technologies,Inc. 25277 2,893.14 Laboratory Services&Supplies AICHE 25515 226.00 Professional Organizations Meeting/Training/Memberships Air Liquide America Corp. 25278 1,146.15 Laboratory Services&Supplies Air Products&Chemicals,Inc. 25263 26,813.90 Chemicals,Water/Wastewater Treatment Airgas Safety,Inc. 25279 701.96 Safety Supplies Airgas Safety,Inc. 25516 4,672.98 Safety,Security,Health Equipment,Supplies,and Services AKM Consulting Engineers 25280 16,704.00 Professional Services/Dig Alert Associate Engineer Alhambra Foundry Co.,Ltd. 25517 3,240.75 Repair&Maintenance Services and/or Supplies All Metals Processing 25505 4,885.12 Reconciliation User Fee Refund Program Allied Electronic Services,Inc. 25810 306.94 Reconciliation User Fee Refund Program Allied Pacific Metal Stamping 25506 3,233.18 Reconciliation User Fee Refund Program Almatron Electronics 25507 880.95 Reconciliation User Fee Refund Program Almega Environmental&Technical Services 25518 1,327.13 Professional Services/Air Quality Aluminum Forge 25508 2,049.32 Reconciliation User Fee Refund Program Amcor-Sunclipse,Inc. 25509 9,534.42 Reconciliation User Fee Refund Program American Airlines 25281 3,557.67 Transportation American Machinery&Blade,Inc. 25282 182.70 Repair&Maintenance Services and/or Supplies American Management Association,Inc. 25519 2,195.00 Professional Organizations Meeting/Training/Memberships American Society for Microbiology 25520 182.00 Professional Organizations Meeting/Training/Memberships American Society of Civil Engineers 25283 250.00 Professional Organizations Meeting/Training/Memberships American Society of Civil Engineers 25521 250.00 Professional Organizations Meeting/Training/Memberships Anaheim Corporate Office Plaza 25444 8,485.06 Reconciliation User Fee Refund Program Anne H.Paulus Trust 25445 9,981.53 Reconciliation User Fee Refund Program Antoine Huy Bui 25446 947.41 Reconciliation User Fee Refund Program AppleOne Employment Service 25522 3,800.72 Professional Services/Temporary Services Applied Industrial Technology 25284 472.66 Repair&Maintenance Services and/or Supplies Applied Industrial Technology 25523 145.34 Repair&Maintenance Services and/or Supplies Aro Services 25524 312.81 Reconciliation User Fee Refund Program Arrowhead Products 25510 7,610.66 Reconciliation User Fee Refund Program ARS Enterprises,Inc. 25525 908.36 Laboratory Services&Supplies Artisan Nameplate and Awards Corp. 25511 132.44 Reconciliation User Fee Refund Program Aspen Publishers,Inc. 25285 250.00 Books and Publications AT&T 25502 212.29 Telecommunications AT&T Long Distance. 25526 40.47 Telecommunications Atlas Underground,Inc. 25286 12,192.60 Repair&Maintenance Services and/or Supplies Austin Building and Design dba The Austin Company 25527 1,760.77 Professional Services/Engineering Design Services Auto Chlor System of Washington,Inc. 25528 2,894.68 Reconciliation User Fee Refund Program Aviation Equipment,Inc. 25512 4,806.59 Reconciliation User Fee Refund Program Awards&Trophies Company 25529 14.85 Awards and Framing AWWA 25530 198.00 Professional Organizations Meeting/Training/Membership EXHIBIT B fin/210/Ic Page 1 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Baker Tanks 25538 2,252.95 Repair&Maintenance Services and/or Supplies Battery Specialties 25539 159.86 Batteries,Various Bazz Houston Co. 25531 3,299.82 Reconciliation User Fee Refund Program BC Wire Rope&Rigging 25540 2,003.72 Tools&Supplies BEC-Building Electronic Controls,Inc. 25287 14,865.00 Electrical/Electronic Equipment,Parts&Repairs Beckman Coulter,Inc. 25532 1,881.97 Reconciliation User Fee Refund Program Bernardo DeAnda 25816 932.24 Meeting/Training Expense Reimbursement Best Western Summit,Inc. 25447 565.72 Reconciliation User Fee Refund Program BI Technologies 25541 3,477.46 Reconciliation User Fee Refund Program BioMerieux Vitek,Inc. 25288 2,701.40 Laboratory Services&Supplies Bioquip Products 25542 185.07 Laboratory Services&Supplies Black&Veatch Corporation 25264 237,276.17 Professional Services/Engineering Design Services Black&Veatch Corporation 25543 13,133.38 Professional Services/Engineering Design Services Black Oxide Industries,Inc. 25533 137.21 Reconciliation User Fee Refund Program Bodycote Lindberg Corp. 25534 189.40 Reconciliation User Fee Refund Program Boing-Anaheim 25480 30,454.62 Reconciliation User Fee Refund Program Bonadonna,David&Diana 25448 2,978.02 Reconciliation User Fee Refund Program Bondlogistix,L.L.C. 25289 3,000.00 Professional Financial Services Bonterra Consulting,L.L.C. 25544 3,551.25 Professional Services/Engineering Design Services Bootworld 25290 2,385.30 Safety,Security,Health Equipment,Supplies,and Services Brasstech,Inc. 25535 8,731.35 Reconciliation User Fee Refund Program Brea Corporate Park II,L.L.C. 25449 6,228.96 Reconciliation User Fee Refund Program Bristol Group/BGI Holdings I,L.L.C. 25450 8,799.00 Reconciliation User Fee Refund Program Bristol Industries 25536 343.35 Reconciliation User Fee Refund Program Brown&Caldwell 26 31,730.64 Professional Services/Engineering Design Services Browning,Cheryle 25451 2,551.64 User Fee Refund Regarding Septic Tanks Bryan Industrial Properties,Inc. 25452 2,991.92 Reconciliation User Fee Refund Program Burlington Engineering,Inc. 25537 1,202.77 Reconciliation User Fee Refund Program Busby Family,L.L.C. 25453 4,654.92 Reconciliation User Fee Refund Program Bush&Associates,Inc. 25545 9,828.00 Professional Services/Surveying Services Butier Engineering,Inc. 25482 113,186.37 Professional Services/Engineering Design Services CAL/AZ Portfolio No.1,L.L.C. 25458 2,782.97 Reconciliation User Fee Refund Program CALAFCO 25822 4,600.00 Governmental Agency Fees&Charges Cal-Aurum Industries 25546 631.94 Reconciliation User Fee Refund Program Calif.Consolidated Water Purification 25547 1,936.57 Reconciliation User Fee Refund Program California Auto Collision 25292 865.59 Autos,Trucks&Marine Equipment,Parts,Accessories&Services California Barricade Rentals 25565 280.00 Miscellaneous Services California Dept.of Child Support 25293 1,919.51 Judgments Payable Caltrol,Inc. 25294 699.18 Electrical/Electronic Equipment,Parts&Repairs Cambridge Isotope Labs 25566 622.28 Laboratory Services&Supplies Cambro Manufacturing 25548 2,356.84 Reconciliation User Fee Refund Program Cameron Welding Supply 25567 1,313.50 Repair&Maintenance Services and/or Supplies Camp Dresser&McKee,Inc. 25295 5,192.85 Professional Services/Engineering Design Services Caran Precision Engineering 25549 2,113.14 Reconciliation User Fee Refund Program Cardlock Fuel Systems,Inc. 25296 20,796.71 Fuel Card Professional Services Cargill,Inc. 25550 3,478.36 Reconciliation User Fee Refund Program Carl Warren&Co. 25297 381.00 Professional Services-Workers'Compensation Carl Warren&Co. 25568 300.00 Professional Services-Workers'Compensation EXHIBIT B fin/210/Ic Page 2 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Carollo Engineers 25265 111,452.37 Professional Services/Engineering Design Services Carollo Engineers 25569 15,142.43 Professional Services/Engineering Design Services Carrier Sales&Distribution,L.L.C. 25570 11,962.50 Repair&Maintenance Services and/or Supplies Catalina Cylinders 25551 2,391.26 Reconciliation User Fee Refund Program Cavanaugh Machine Works 25571 770.00 Repair&Maintenance Services and/or Supplies CAVCOM,Inc. 25298 4,054.03 Safety,Security,Health Equipment,Supplies,and Services CCDA Waters,L.L.C. 25572 898.99 Reconciliation User Fee Refund Program CDW Government,Inc. 25299 2,580.31 Computers,Software/Hardware Cedarbrook Garden Grove,L.L.C. 25454 3,070.49 Reconciliation User Fee Refund Program Central Powder Coating 25552 1,852.66 Reconciliation User Fee Refund Program Charles Robert Tyler Trust 25455 1,382.92 Reconciliation User Fee Refund Program Chroma Systems Partners 25483 73,464.48 Reconciliation User Fee Refund Program Circle,Inc. 25573 6,318.25 Copier Toner/Ink Supplies Circuit Access,Inc. 25553 55.36 Reconciliation User Fee Refund Program Circuit Technology,Inc. 25574 222.94 Reconciliation User Fee Refund Program Cirtech,Inc. 25554 2,985.75 Reconciliation User Fee Refund Program Citibank 25456 2,515.23 Reconciliation User Fee Refund Program City National Bank 25498 27,882.50 Construction,Retention City of Garden Grove 25300 316.38 Water Use City of Huntington Beach 25643 14,735.89 Water Use City of Newport Beach 25695 178.04 Water Use City of Tustin 25291 3,908.75 Governmental Agency Fees&Charges City of Tustin-Maintenance Yard 25555 379.54 Reconciliation User Fee Refund Program Classic Plating,Inc. 25575 412.88 Reconciliation User Fee Refund Program Clean Harbors Environmental Services 25576 883.52 Grit&Screenings;Hazard Waste Disposal CMAA 25301 60.00 Professional Organizations Meeting/Training/Memberships CMAA 25459 360.00 Professional Organizations Meeting/Training/Memberships Cole-Parmer Instrument Co. 25302 247.93 Instrument Parts&Supplies Columbia West Anaheim Medical Center 25557 4,555.11 Reconciliation User Fee Refund Program Columbine Associates 25558 97.00 Reconciliation User Fee Refund Program Communications Supply Corp. 25303 93.45 Computers,Software/Hardware Compressor Components of California 25304 24,525.25 Repair&Maintenance Services and/or Supplies Connell Chevrolet\GEO 25577 601.22 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Consolidated Electrical Dist.,Inc. 25305 200.64 Electrical/Electronic Equipment,Parts&Repairs Consumers Pipe&Supply Co. 25306 2,112.42 Repair&Maintenance Services and/or Supplies Consumers Pipe&Supply Co. 25578 2,295.77 Repair&Maintenance Services and/or Supplies Continuous Coating Corp. 25559 9.56 Reconciliation User Fee Refund Program Controlled Motion Solutions 25579 207.08 Repair&Maintenance Services and/or Supplies Corporate Image Maintenance,Inc. 25580 175.00 Janitor&Household Service&Supplies Cortech Engineering 25307 72.16 Repair&Maintenance Services and/or Supplies Cortech Engineering 25581 4,271.11 Repair&Maintenance Services and/or Supplies Costa Mesa Sanitary District 25266 1,300,252.50 Water Use County of Orange Auditor Controller 25308 156.50 Governmental Agency Fees&Charges County of Orange Auditor Controller 25309 70.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25460 420.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25461 675.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25582 35.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 25821 975.00 Governmental Agency Fees&Charges EXHIBIT B fin/210/Ic Page 3 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Court Order 25363 150.00 Judgments Payable Court Order 25368 225.00 Judgments Payable Court Order 25392 108.00 Judgments Payable Court Order 25433 912.50 Judgments Payable CR&R,Inc. 25310 945.00 Waste Disposal CR&R,Inc. 25583 315.00 Waste Disposal Crest Coatings#2 25560 992.63 Reconciliation User Fee Refund Program Criterion Machine Works 25561 2,143.56 Reconciliation User Fee Refund Program Crockett Container Corp. 25562 7,478.49 Reconciliation User Fee Refund Program Culligan of Orange County 25311 55.20 Repair&Maintenance Services and/or Supplies Culligan Water Conditioning 25563 754.24 Reconciliation User Fee Refund Program Curley Wholesale Electric,Inc. 25312 97.37 Electrical/Electronic Equipment,Parts&Repairs Curley Wholesale Electric,Inc. 25584 6,580.77 Electrical/Electronic Equipment,Parts&Repairs Custom Enamelers,Inc. 25564 58.13 Reconciliation User Fee Refund Program CWEA Membership 25585 396.00 Professional Organizations Meeting/Training/Membership CWEA Specialty Conference 25586 310.00 Professional Organizations Meeting/Training/Memberships Data Aire,Inc. 25587 823.09 Reconciliation User Fee Refund Program Data Electronics Service 25588 891.27 Reconciliation User Fee Refund Program Data Solder,Inc. 25589 341.89 Reconciliation User Fee Refund Program David Jenkins&Assoc.,Inc. 25313 250.00 Lab Analysis Service David Wheeler Pest Control,Inc. 25315 600.00 Pest Control Services David's Tree Service 25314 4,330.00 Groundskeeping Dean M.Fisher 25817 1,197.33 Meeting/Training Expense Reimbursement Dennis Greenberger,Ph.D. 25316 1,500.00 Employee Medical Evaluations Department of Motor Vehicles 25317 20.00 Boat License Renewal-Ocean Monitoring Program Derm Cosmetic Labs,Inc. 25590 6,918.69 Reconciliation User Fee Refund Program Detection Instruments Corporation 25318 2,784.95 Electrical/Electronic Equipment,Parts&Repairs DLT&V Systems Engineering,Inc. 25594 335.00 Computer Applications&Services Dos Cuadras Offshore Resources,L.L.C. 25591 1,931.81 Reconciliation User Fee Refund Program Dr.Smoothie Enterprises 25592 1,027.87 Reconciliation User Fee Refund Program DRS Sensors&Targeting Systems,Inc. 25595 1,607.51 Reconciliation User Fee Refund Program Ducommun Aerostructures,Inc. 25593 2,119.73 Reconciliation User Fee Refund Program Dunn-Edwards Corporation 25319 139.63 Painting Services and Supplies Dwyer Instruments,Inc. 25596 775.08 Repair&Maintenance Services and/or Supplies Eagle Protection of California 25320 275.00 Safety,Security,Health Equipment,Supplies,and Services EFT Fast Quality Service,Inc. 25600 708.58 Reconciliation User Fee Refund Program El Toro Meat Shop 25597 16,540.34 Reconciliation User Fee Refund Program Electronic Balancing Co. 25321 165.00 Repair&Maintenance Services and/or Supplies EI-Metate Foods,Inc. 25598 365.41 Reconciliation User Fee Refund Program EMEDCO 25322 1,236.90 Safety,Security,Health Equipment,Supplies,and Services EMEDCO,Inc. 25601 1,534.10 Safety,Security,Health Equipment,Supplies,and Services Employee Benefits Specialists,Inc. 25323 11,524.30 Reimbursed Prepaid Employee Medical&Dependent Care Employee Benefits Specialists,Inc. 25602 1,672.00 Reimbursed Prepaid Employee Medical&Dependent Care Employment Development Dept. 25603 5,279.00 Unemployment Insurance Enertech Environmental 25484 516,642.90 Biosolids Management ENS Resources,Inc. 25324 7,500.00 Professional Services-Federal Advocacy Entech Instruments,Inc. 25325 9,134.00 Laboratory Services&Supplies Environmental Resource Associates 25326 1,482.84 Laboratory Services&Supplies EXHIBIT B fin/210/Ic Page 4 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Environmental Sampling Supply,Inc. 25327 76.18 Laboratory Services&Supplies Environmental Sampling Supply,Inc. 25604 276.28 Laboratory Services&Supplies Eric S.Hsieh 25436 134.79 Meeting/Training Expense Reimbursement Ess Prisa II,L.L.C. 25462 4,152.36 Reconciliation User Fee Refund Program Expedia Media,L.L.C. 25599 3,664.92 Reconciliation User Fee Refund Program Express Lens Lab 25605 1,434.18 Safety,Security,Health Equipment,Supplies,and Services Fabrication Concepts Corporation 25606 3,669.84 Reconciliation User Fee Refund Program Fairview State Hospital 25607 7,937.43 Reconciliation User Fee Refund Program Far East National Bank 25812 11,306.93 Construction,Retention Fedex Corporation 25329 52.79 Freight Services Filterline Corporation 25612 281.12 Repair&Maintenance Services and/or Supplies Fineline Circuits&Tech. 25608 276.51 Reconciliation User Fee Refund Program First American Corelogic 25613 767.00 Annual On-Line Subscription Fisher Scientific 25330 783.21 Laboratory Services&Supplies Fisher Scientific 25614 4,701.30 Laboratory Services&Supplies Fitch,Inc. 25615 3,000.00 Professional Services/COP Annual Surveillance Fees Series 2000 A&B Flomax Products,Inc. 25267 30,702.30 Repair&Maintenance Services and/or Supplies Fox Scientific Inc 25616 62.42 Laboratory Services&Supplies Franchise Tax Board 25331 50.00 Judgments Payable Franchise Tax Board 25332 217.00 Judgments Payable Frank M.Doyle Foundation 25463 20,679.69 Reconciliation User Fee Refund Program Fresh Food Concepts,Inc. 25609 13,271.29 Reconciliation User Fee Refund Program Frozun Foods 25610 543.26 Reconciliation User Fee Refund Program Full Spectrum Analytics 25328 1,238.16 Laboratory Services&Supplies Fullerton Plating 25611 2,232.37 Reconciliation User Fee Refund Program Future Computing Solutions,Inc. 25333 598.13 Computers,Software/Hardware G&L Tustin,L.L.C.III 25464 3,339.07 Reconciliation User Fee Refund Program Gallade Chemical,Inc. 25617 1,437.46 Reconciliation User Fee Refund Program Garratt Callahan Company 25334 5,436.96 Chemicals,Water/Wastewater Treatment Garratt Callahan Company 25622 4,199.60 Chemicals,Water/Wastewater Treatment Gates Fiberglass Installers 25623 2,521.88 Repair&Maintenance Services and/or Supplies GBC(General Binding Corp) 25336 56.71 Office Supplies GBC(General Binding Corp) 25624 37.84 Office Supplies GE Aviation 25625 19,501.33 Reconciliation User Fee Refund Program General Container Corp. 25618 318.46 Reconciliation User Fee Refund Program Geomatrix Consultants,Inc. 25337 2,390.00 Professional Services/Geotech&Material Testing George L.Robertson 25441 322.00 Meeting/Training Expense Reimbursement George Rivera 25440 103.57 Meeting/Training Expense Reimbursement George Yardley Co. 25338 111.60 Repair&Maintenance Services and/or Supplies Georgia-Pacific Corrugated,L.L.C. 25619 1,412.66 Reconciliation User Fee Refund Program GKN Aerospace Transparency Systems,Inc. 25628 6,040.47 Reconciliation User Fee Refund Program Glens Alignment&Brake Service 25629 625.05 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Golden State Overnight Delivery Service 25630 395.13 Courier Services Golden West&Edinger LTD Partnership 25465 16,031.55 Reconciliation User Fee Refund Program Golden West Window Service 25339 5,325.00 Facilities,Maintenance,Services&Supplies Golden West Window Service 25631 1,470.00 Facilities,Maintenance,Services&Supplies Gomtech Electronics 25621 331.79 Reconciliation User Fee Refund Program Government Finance Officers Association 25627 3,609.00 Professional Organizations Meeting/Training/Memberships EXHIBIT B fin/210/Ic Page 5 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Governmental Accounting Standards Board 25335 240.54 Books and Publications Grainger,Inc. 25340 298.39 Repair&Maintenance Services and/or Supplies Grainger,Inc. 25632 1,553.93 Repair&Maintenance Services and/or Supplies Graybar Electric Company 25341 1,090.60 Electrical/Electronic Equipment,Parts&Repairs Great Western Sanitary Supplies 25633 232.81 Janitor&Household Service&Supplies Greatland Corporation 25634 469.37 Office Supplies GT Hall Company 25626 556.21 Mechanical Parts&Supplies Guy L.Warden&Sons 25635 1,211.51 Repair&Maintenance Services and/or Supplies Hach c/o Ponton Industries 25342 313.17 Laboratory Services&Supplies Hai-Thao T.Huynh 25437 656.01 Meeting/Training Expense Reimbursement Hampton Tedder Technical Services 25485 25,254.00 Electrical/Electronic Equipment,Parts&Repairs Harbor Truck Bodies,Inc. 25636 49.13 Reconciliation User Fee Refund Program Hardy Diagnostics 25343 880.02 Laboratory Services&Supplies Harrington Industrial Plastics,Inc. 25344 796.87 Repair&Maintenance Services and/or Supplies Harrington Industrial Plastics,Inc. 25639 2,771.76 Repair&Maintenance Services and/or Supplies Harte-Hanks Shoppers 25637 5,316.41 Reconciliation User Fee Refund Program Hasco Oil Co.,Inc. 25345 243.82 Fuel and Lubricants Hasco Oil Co.,Inc. 25640 412.64 Fuel and Lubricants Hasler,Inc. 25346 94.61 Postage Meter Rental Hilti,Inc. 25347 177.41 Repair&Maintenance Services and/or Supplies Hilti,Inc. 25641 2,668.35 Repair&Maintenance Services and/or Supplies Hing Bong Properties,L.L.C. 25466 2,969.43 Reconciliation User Fee Refund Program Home Depot 25642 1,376.76 Miscellaneous Parts and Supplies Hopkins Technical Products,Inc. 25348 1,344.15 Repair&Maintenance Services and/or Supplies Huntington Beach Medical Center 25556 3,287.68 Reconciliation User Fee Refund Program Ideal Anodizing 25644 94.49 Reconciliation User Fee Refund Program Idexx 25349 9,439.50 Laboratory Services&Supplies Idexx 25647 5,872.50 Laboratory Services&Supplies Imada,Inc. 25648 2,260.00 Safety,Security,Health Equipment,Supplies,and Services Independent Forge Co. 25645 890.29 Reconciliation User Fee Refund Program Indiana Child Support Bureau 25350 290.00 Judgments Payable Industrial Distribution Group 25649 219.56 Repair&Maintenance Services and/or Supplies Industrial Filter Manufacturers,Inc. 25351 1,154.78 Repair&Maintenance Services and/or Supplies Industrial Safety Shoe Co. 25352 9,907.39 Safety,Security,Health Equipment,Supplies,and Services Inorganic Ventures,Inc. 25353 440.15 Laboratory Services&Supplies Inorganic Ventures,Inc. 25650 100.77 Laboratory Services&Supplies Integrated Healthcare Holdings 25486 29,926.84 Reconciliation User Fee Refund Program Intermountain Scientific 25651 50.96 Laboratory Services&Supplies Internal Revenue Service 25354 125.00 Judgments Payable International Business Machines 25652 5,947.26 Computer Applications&Services International Institute of Municipal Clerks 25653 300.00 Memberships and/or Meeting/Training Registration International Paper 25654 8,042.12 Reconciliation User Fee Refund Program International Paper#2 25487 60,562.93 Reconciliation User Fee Refund Program Intl.Union of Oper.Eng.AFL CIO Local 501 25355 4,888.12 Dues Deductions Invensys Systems,Inc. 25356 1,077.37 Electrical/Electronic Equipment,Parts&Repairs Invensys Systems,Inc. 25356 4,004.46 Electrical/Electronic Equipment,Parts&Repairs Invensys Systems,Inc. 25655 1,599.33 Electrical/Electronic Equipment,Parts&Repairs lodynamix,Inc. 25357 7,443.00 Computer Applications&Services EXHIBIT B fin/210/Ic Page 6 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description IPC Cal Flex,Inc. 25656 780.00 Reconciliation User Fee Refund Program IPMC c/o Parsons 25268 1,213,157.00 Professional Services/Temporary Services Irvine Ranch Water District 25358 50.45 Water Use Irvine Ranch Water District 25657 7.75 Water Use Irvine Sensors Corp. 25646 14,671.33 Reconciliation User Fee Refund Program ITT Cannon Electric 25488 56,458.22 Reconciliation User Fee Refund Program J.F.Shea Construction,Inc. 25499 6,188,798.84 Construction James D.Niswonger 25439 931.76 Meeting/Training Expense Reimbursement James E.Colston 25435 425.42 Meeting/Training Expense Reimbursement Jamison Engineering Contractors,Inc. 25359 10,712.80 Professional Services/Engineering Design Services Jays Catering 25659 171.46 Catering Services Jazz Semiconductor 25489 479,956.62 Reconciliation User Fee Refund Program JCI Jones Chemicals,Inc. 27 74,121.09 Chemicals,Water/Wastewater Treatment JCI Jones Chemicals,Inc. 30 62,473.49 Chemicals,Water/Wastewater Treatment Jellco Container,Inc. 25658 1,227.01 Reconciliation User Fee Refund Program Johnstone Supply 25360 1,378.06 Repair&Maintenance Services and/or Supplies Jurjis,Faruq F.&Ledia 25467 2,739.58 Reconciliation User Fee Refund Program Kelly Paper 25663 713.40 Office Supplies Kemira Water Solutions 28 67,887.54 Chemicals,Water/Wastewater Treatment Kemira Water Solutions 31 129,501.51 Chemicals,Water/Wastewater Treatment Kenlen Specialties,Inc. 25660 522.69 Reconciliation User Fee Refund Program Kirby,Joshua D 25438 152.24 Meeting/Training Expense Reimbursement Kirkhill Rubber 25661 8,034.43 Reconciliation User Fee Refund Program Kodak Processing Labs 25662 3,081.93 Reconciliation User Fee Refund Program Koff&Associates,Inc. 25664 2,805.00 Professional Services/Comp&Class Study Koros,Angelo 25468 1,581.79 Reconciliation User Fee Refund Program Krohne,Inc. 25665 2,052.94 Mechanical Parts&Supplies L.Johnson Painting 25361 4,860.00 Painting Services and Supplies L.Johnson Painting 25666 3,620.00 Painting Services and Supplies La Palma Intercommunity Hospital 25667 12,949.27 Reconciliation User Fee Refund Program Labor Arbitration Institute,Inc. 25362 500.00 Professional Organizations Meeting/Training/Memberships Lacey Custom Linens 25668 254.59 Reconciliation User Fee Refund Program Lam Lighting,Inc. 25669 5,003.34 Reconciliation User Fee Refund Program Lam-Plate Tech,Inc. 25670 33.72 Reconciliation User Fee Refund Program Lance Soll and Lunghard 25673 757.75 Professional Services-Auditing Larry R.Crandall 25457 1,347.70 Meeting/Training Expense Reimbursement Layne T.Baroldi 25813 1,731.08 Meeting/Training Expense Reimbursement Lee&Ro,Inc. 25269 43,000.62 Professional Services/Engineering Design Services Logi Graphics 25671 326.42 Reconciliation User Fee Refund Program Los Alamitos General Hospital 25672 4,122.98 Reconciliation User Fee Refund Program LRP Publications 25674 444.50 Books and Publications M.R.S.Foods,Inc. 25675 8,177.84 Reconciliation User Fee Refund Program Magnetic Metals Corporation 25676 3,855.29 Reconciliation User Fee Refund Program Malcolm Pirnie,Inc. 25270 31,014.84 Professional Services/Engineering Design Services Malcolm Pirnie,Inc. 25683 19,353.09 Professional Services/Engineering Design Services Marc A.Brown 25814 986.52 Meeting/Training Expense Reimbursement Marcel Electronics,Inc. 25677 148.70 Reconciliation User Fee Refund Program Markall,Inc. 25469 1,175.77 Reconciliation User Fee Refund Program EXHIBIT B fin/210/Ic Page 7 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Markland Industries 25678 666.82 Reconciliation User Fee Refund Program Marquerite Parkway Properties 25470 3,042.41 Reconciliation User Fee Refund Program Mask Technology,Inc. 25679 83.36 Reconciliation User Fee Refund Program Material and Contract Services 25684 4,960.00 Temporary Employment Services Maxim Security Systems 25364 427.50 Safety,Security,Health Equipment,Supplies,and Services McBain Instruments 25685 286.31 Repair&Maintenance Services-Microscope MCl/Verizon 25365 1,532.63 Telecommunications McMaster-Carr Supply Co. 25366 1,814.90 Repair&Maintenance Services and/or Supplies McMaster-Carr Supply Co. 25686 351.84 Repair&Maintenance Services and/or Supplies Medtronic Heartvalve Division,Inc. 25680 2,315.66 Reconciliation User Fee Refund Program Metals USA Building Products 25620 2,992.92 Reconciliation User Fee Refund Program Micrometals,Inc.#2 25681 1,970.59 Reconciliation User Fee Refund Program Microsemi Corp. 25682 700.58 Reconciliation User Fee Refund Program Mine Safety Appliance 25687 2,671.05 Electrical/Electronic Equipment,Parts&Repairs Mission Abrasive&Janitorial Supplies 25367 286.57 Janitorial&Household Services&Supplies Mladen Buntich Construction Company 25500 245,942.50 Construction Morales,Robert 25471 1,045.58 Reconciliation User Fee Refund Program Motion Industries,Inc. 25688 475.97 Electrical Parts&Supplies National Bond&Trust 25369 2,064.94 U.S.Savings Bonds Payroll Deductions National Plant Service 25370 1,980.00 Repair&Maintenance Services and/or Supplies Navigant Consulting,Inc. 25691 1,870.00 Professional Services/Engineering Design Services Neal Supply Co. 25371 327.34 Repair&Maintenance Services and/or Supplies Neal Supply Co. 25692 27.69 Repair&Maintenance Services and/or Supplies Neutron Products,Inc. 25372 3,164.63 Chemicals,Water/WastewaterTreatment Neutron Products,Inc. 25693 9,228.97 Chemicals,Water/Wastewater Treatment Neutronic Stamping&Plating 25689 277.74 Reconciliation User Fee Refund Program New Horizons Computer Learning Center 25373 150.00 Professional Organizations Meeting/Training/Memberships New Pig 25374 445.40 Repair&Maintenance Services and/or Supplies Newark Electronics 25694 4,725.19 Electrical/Electronic Equipment,Parts&Repairs Nguyen,Trong Van 25472 672.68 Reconciliation User Fee Refund Program Ninyo&Moore 25271 46,990.75 Professional Services/Geotech&Material Testing Norco Delivery 25696 436.16 Delivery Services NRG Engine Services,L.L.C. 25375 11,236.29 Repair&Maintenance Services and/or Supplies Nu-Tec Powder Coating 25690 289.75 Reconciliation User Fee Refund Program OCEA 25376 624.93 Dues Deductible Olin Corporation 25377 3,857.78 Chemicals,Water/Wastewater Treatment Olin Corporation 25697 4,319.87 Chemicals,Water/Wastewater Treatment OM Office Supply,Inc. 25698 7,125.00 Computers,Software/Hardware OneSource Distributors,Inc. 25378 1,393.87 Electrical/Electronic Equipment,Parts&Repairs OneSource Distributors,Inc. 25699 7,501.58 Electrical/Electronic Equipment,Parts&Repairs Orange County Hose Company 25379 81.86 Miscellaneous Parts and Supplies Orange County Sanitation District 25823 1,101.77 Petty Cash Expense Orange County Tax Collector 25700 1,210.82 Governmental Agency Fees&Charges Orange County Tax Collector 25701 103.72 Governmental Agency Fees&Charges Orange County United Way 25380 60.00 Employee Contributions Orange County Vector Control District 25702 140.80 Pest Control Orange Fluid System Technologies,Inc. 25397 324.31 Repair&Maintenance Services and/or Supplies Orange Fluid System Technologies,Inc. 25756 63.30 Repair&Maintenance Services and/or Supplies EXHIBIT B fin/210/Ic Page 8 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Oxygen Service Company 25381 946.64 Laboratory Services&Supplies Oxygen Service Company 25703 1,035.51 Laboratory Services&Supplies Pacific Mechanical Supply 25714 16,279.12 Repair&Maintenance Services and/or Supplies Pacific Publishers 25715 138.04 Laboratory Services&Supplies Packet Fusion,Inc. 25382 1,590.32 Computers,Software/Hardware Padgett-Thompson 25383 199.00 Training Registration PAPA 25716 40.00 Professional Organizations Meeting/Training/Memberships Paramount Disc Manufacturing,Inc. 25704 26.04 Reconciliation User Fee Refund Program Parker Supply Company 25384 143.41 Miscellaneous Parts and Supplies Patio&Door Outlet,Inc. 25705 422.43 Reconciliation User Fee Refund Program PBS&J 25272 36,668.70 Professional Services/Engineering Design Services Peace Officers Council of CA 25385 2,219.50 Dues Deductions,Supervisors&Professionals Pepsi Bottling Group 25706 12,809.99 Reconciliation User Fee Refund Program Performance Pipeline Technologies 25717 19,013.25 Professional Services/CCTV Inspection PerkinElmer Labs 25386 346.92 Professional Organizations Meeting/Training/Memberships Pico Farad,Inc. 25707 2,376.17 Reconciliation User Fee Refund Program PL Hawn Company,Inc. 25387 2,510.84 Repair&Maintenance Services and/or Supplies PL Hawn Company,Inc. 25718 1,057.99 Repair&Maintenance Services and/or Supplies Platinum Circuits,Inc. 25708 2,315.37 Reconciliation User Fee Refund Program Polydyne,Inc. 29 76,234.80 Chemicals,Water/Wastewater Treatment Polydyne,Inc. 33 10,291.46 Chemicals,Water/Wastewater Treatment Powdercoat Services 25709 286.90 Reconciliation User Fee Refund Program Precision Anodizing&Plating,Inc. 25719 24,322.14 Reconciliation User Fee Refund Program Precon,Inc. 25710 1,013.98 Reconciliation User Fee Refund Program Primary Source Office Furnishings,Inc. 25720 2,054.84 Minor Equipment/Furniture&Fixtures Primrose Ice Co.,Inc. 25388 110.00 Water&Ice Services Private Label Laboratories 25711 7,045.71 Reconciliation User Fee Refund Program Progress Marketing 25712 2,962.81 Reconciliation User Fee Refund Program Propipe Professional Pipe Services 25721 5,855.29 Professional Services/Sewerline Cleaning Prudential Insurance Company of America 25273 43,881.96 Benefits Prudential Overall Supply 25389 1,409.09 Uniforms Pure Chem Products Co. 25713 182.30 Reconciliation User Fee Refund Program Purvi R.Patel 25820 142.58 Meeting/Training Expense Reimbursement Putzmeister America,Inc. 25390 67.69 Repair&Maintenance Services and/or Supplies Pyramid Fence Company,Inc. 25391 4,875.00 Facilities,Maintenance,Services&Supplies Quality Aluminum Forge,Div of GEL Ind. 25722 889.45 Reconciliation User Fee Refund Program R L Abbott&Associates 25723 1,000.00 Professional Services/Advocacy Efforts R.A.Industries,L.L.C. 25473 1,302.82 Reconciliation User Fee Refund Program Railmakers,Inc. 25724 31.13 Reconciliation User Fee Refund Program RBC Transport Dynamics 25728 794.55 Reconciliation User Fee Refund Program Red Wing Shoes 25393 18,376.73 Safety,Security,Health Equipment,Supplies,and Services Remedy Environmental Services 25725 5,118.74 Reconciliation User Fee Refund Program Restek Corp. 25394 2,527.08 Laboratory Services&Supplies Restek Corp. 25729 927.19 Laboratory Services&Supplies Richard A.Castillon 25815 686.13 Meeting/Training Expense Reimbursement Rigiflex Technology,Inc. 25726 240.33 Reconciliation User Fee Refund Program Robert P.Ghirelli 25819 1,048.13 Meeting/Training Expense Reimbursement Roberto's Auto Trim Shop 25730 1,449.44 Autos,Trucks&Marine Equipment,Parts,Accessories&Services EXHIBIT B fin/210/Ic Page 9 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Robyn A.Wilcox 25443 125.00 Meeting/Training Expense Reimbursement Rock Industries 25727 164.74 Reconciliation User Fee Refund Program Rockwell Engineering&Equipment Co. 25395 246.32 Repair&Maintenance Services and/or Supplies Rockwell Engineering&Equipment Co. 25731 13,466.52 Repair&Maintenance Services and/or Supplies Roto Rooter NOC#11 25396 274.00 Repair&Maintenance Services and/or Supplies Roto Rooter NOC#11 25732 525.00 Repair&Maintenance Services and/or Supplies Royale Cleaners 25733 98.50 Miscellaneous Services RS Hughes Co.,Inc. 25734 442.67 Repair&Maintenance Services and/or Supplies RTI Electronics,Inc. 25735 871.24 Reconciliation User Fee Refund Program Ryan Herco Products Corp. 25736 704.70 Repair&Maintenance Services and/or Supplies Sachs Electric Company 25275 72,975.43 Professional Services/Central Generation Automation Saddleback Materials Co.,Inc. 25754 481.31 Miscellaneous Parts and Supplies Sancon Engineering,Inc. 25493 247,541.00 Repair&Maintenance Services and/or Supplies Sanmina Corporation(Airway) 25737 18,565.15 Reconciliation User Fee Refund Program Sanmina Corporation(Redhill) 25738 7,301.93 Reconciliation User Fee Refund Program Santana Services 25739 234.53 Reconciliation User Fee Refund Program Scientific Spray Finishes 25740 421.07 Reconciliation User Fee Refund Program Scoff Specialty Gases,Inc. 25398 38.83 Laboratory Services&Supplies SCP Science 25399 555.00 Laboratory Services&Supplies Sea Life Supply 25757 357.74 Laboratory Services&Supplies Sechrist Industries,Inc. 25741 3,086.36 Reconciliation User Fee Refund Program Sekisui TA Industries,Inc. 25742 15,928.80 Reconciliation User Fee Refund Program Serrano Water District 25743 16,629.15 Reconciliation User Fee Refund Program SETAC 25400 320.00 Professional Organizations Meeting/Training/Membership SGS Testcom,Inc. 25758 100.00 Telecommunications Shamrock Supply Co.,Inc. 25759 3,914.64 Repair&Maintenance Services and/or Tools and Supplies Shepard Brothers,Inc. 25744 315.41 Reconciliation User Fee Refund Program Shureluck Sales&Engineering 25401 2,607.70 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 25760 489.47 Repair&Maintenance Services and/or Supplies Siemens Water Technologies Corp. 25761 1,271.78 Repair&Maintenance Services and/or Supplies Sigma-Aldrich,Inc. 25402 4,761.33 Laboratory Services&Supplies Simon L.Watson 25442 827.71 Meeting/Training Expense Reimbursement Sioux Honey Assoc.Co-op 25490 54,177.15 Reconciliation User Fee Refund Program SkillPath Seminars 25403 199.00 Professional Organization&Meeting/Training Registration Smith Pipe&Supply,Inc. 25763 128.90 Facilities,Maintenance,Services&Supplies Smith-Emery Company 25762 8,825.38 Professional Services/Geotech&Material Testing Snap-On-Tools DBA Jesse P.Gomez 25764 418.63 Repair&Maintenance Services and/or Supplies South Bay Chrome Sales 25765 361.25 Reconciliation User Fee Refund Program South Coast Construction Services 25766 6,800.00 Repair&Maintenance Services and/or Supplies Southern California Edison 25274 439,485.80 Utilities Southern California Trane Service 25404 91.68 Electrical/Electronic Equipment,Parts&Repairs Southern Counties Lubricants 25405 2,664.18 Fuel and Lubricants Southern Counties Lubricants 25767 538.24 Fuel and Lubricants Sparling Instruments,Inc. 25768 7,750.01 Electrical/Electronic Equipment,Parts&Repairs Spec Services,Inc. 25406 5,435.48 Professional Services/Engineering Design Services Spehar Canyon Village,L.L.C. 25474 4,482.78 Reconciliation User Fee Refund Program SPEX Certiprep,Inc. 25407 339.85 Laboratory Services&Supplies SPEX Certiprep,Inc. 25769 360.31 Laboratory Services&Supplies EXHIBIT B fin/210/Ic Page 10 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description SPS Technologies 25770 14,609.90 Reconciliation User Fee Refund Program Square D Co.dba Schneider Electric 25408 4,721.37 Electrical/Electronic Equipment,Parts&Repairs St.Croix Sensory,Inc. 25409 610.00 Outside Laboratory Services St.Jude Medical Center 25491 54,220.12 Reconciliation User Fee Refund Program Stainless Micro-Polish 25745 4,011.65 Reconciliation User Fee Refund Program Stanley Steamer International,Inc. 25410 645.20 Janitor&Household Service&Supplies Stanton Radiator 25771 15,421.06 Repair&Maintenance Services and/or Supplies Staples Direct 25411 169.20 Office Supplies Star Painting&Refinishing 25746 101.00 Reconciliation User Fee Refund Program Statek Corporation 25747 3,448.31 Reconciliation User Fee Refund Program Statek Corporation 25748 4,689.06 Reconciliation User Fee Refund Program Stepan Company 25749 14,981.57 Reconciliation User Fee Refund Program Steve Bubalo Construction Co. 25501 214,831.67 Construction Summit Steel 25772 1,024.38 Repair&Maintenance Services and/or Supplies Sunclipse,Inc. 25750 11,044.35 Reconciliation User Fee Refund Program Sunclipse,Inc./Corru Kraft 25751 8,944.18 Reconciliation User Fee Refund Program Sunny Delight Beverages Company 25492 26,172.05 Reconciliation User Fee Refund Program Sunny's Cleaners Inc 25752 1,891.69 Reconciliation User Fee Refund Program Sunopta Fruit Group,Inc.Berry Operation 25494 111,399.28 Reconciliation User Fee Refund Program Sunset Ford 25773 14.77 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Sunset Industrial Parts 25412 3,150.19 Repair&Maintenance Services and/or Supplies Sunset Industrial Parts 25774 1,121.84 Repair&Maintenance Services and/or Supplies Super Chem Corporation 25413 1,363.73 Repair&Maintenance Services and/or Supplies Superior Plating 25753 114.31 Reconciliation User Fee Refund Program Synagro West,Inc. 32 621,207.33 Biosolids Taormina Industries,Inc. 25775 438.31 Reconciliation User Fee Refund Program Taylor-Dunn 25780 10,337.07 Reconciliation User Fee Refund Program TekSystems 25781 3,149.25 Professional Services/Temporary Services Terminix International Pest Control 25414 539.00 Pest Control Services TestAmerica Ontario 25782 105.00 Laboratory Services&Supplies The Boeing Company 25481 39,204.05 Reconciliation User Fee Refund Program The Hartwell Corporation 25638 1,050.51 Reconciliation User Fee Refund Program The Trane Company 25788 2,697.61 Mechanical Parts&Supplies The Unisource Corporation 25418 1,455.47 Paper&Office Supplies The Wackenhut Corporation 25428 6,483.36 Safety,Security,Health Equipment,Supplies,and Services The Wackenhut Corporation 25805 7,792.40 Safety,Security,Health Equipment,Supplies,and Services Thermo Electron North America,L.L.C. 25783 2,140.48 Laboratory Services&Supplies Thompson Industrial Supply,Inc. 25415 2,702.87 Repair&Maintenance Services and/or Supplies Thompson Industrial Supply,Inc. 25784 6,719.03 Repair&Maintenance Services and/or Supplies Tiano Construction 25416 4,100.00 Facilities,Maintenance,Services&Supplies Time Warner Communications 25785 51.99 Telecommunications Timken Bearing Inspection,Inc. 25776 201.02 Reconciliation User Fee Refund Program Tony's Lock&Safe Service&Sales 25786 388.94 Repair&Maintenance Services and/or Supplies Toyota Racing Development 25777 1,561.36 Reconciliation User Fee Refund Program Traffic Control Service,Inc. 25787 86.46 Safety,Security,Health Equipment,Supplies,and Services Tran,Nhan 25475 844.55 Reconciliation User Fee Refund Program Transline Technology,Inc. 25778 339.12 Reconciliation User Fee Refund Program Truck&Auto Supply,Inc. 25789 57.36 Autos,Trucks&Marine Equipment,Parts,Accessories&Services EXHIBIT B fin/210/Ic Page 11 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Tsai,Carol 25476 1,400.22 Reconciliation User Fee Refund Program Tule Ranch/Magan Farms 25495 123,417.68 Biosolids Management Tustin Hospital and Medical Center 25779 5,127.70 Reconciliation User Fee Refund Program U Line 25790 446.55 Miscellaneous Parts and Supplies UCI Medical Center 25496 52,924.98 Reconciliation User Fee Refund Program Ultra Pure Metal Finishing,Inc. 25791 1,169.83 Reconciliation User Fee Refund Program Ultra Scientific 25417 985.50 Laboratory Services&Supplies Underground Service Alert of So.Calif 25793 1,362.00 Professional Services-Dig Alert Notification Service Union Bank of California 25794 5,921.13 Banking Services United Circuit Technology 25792 3,151.80 Reconciliation User Fee Refund Program United Parcel Service 25419 1,939.99 Freight Services United Parcel Service 25795 59.88 Freight Services Universal Flooring Systems,Inc. 25796 355.00 Repair&Maintenance Services and/or Supplies USA Mobility Wireless,Inc. 25420 2,140.58 Telecommunications VALCO Instruments Co.,Inc. 25798 589.35 Laboratory Services&Supplies Vapex,Inc. 25421 1,918.35 Electrical/Electronic Equipment,Parts&Repairs Varian,Inc. 25422 1,936.87 Laboratory Services&Supplies Varian,Inc. 25799 146.82 Laboratory Services&Supplies Veg Fresh Farms,L.L.C. 25797 4,984.98 Reconciliation User Fee Refund Program Verizon California 25423 49.65 Telecommunications Verne's Plumbing 25424 3,905.99 Plumbing Services&Supplies Victoria L.Francis 25818 1,066.24 Meeting/Training Expense Reimbursement Villa Prep&Paint 25425 4,295.00 Painting Services and Supplies VIP Family Partners,L.L.C. 25477 1,574.42 Reconciliation User Fee Refund Program Vistamation,Inc. 25800 3,811.06 Repair&Maintenance Services and/or Supplies Voided Check 25755 - - Vortex Corp. 25426 2,090.21 Repair&Maintenance Services and/or Supplies Vortex Corp. 25801 3,310.38 Repair&Maintenance Services and/or Supplies VWR Scientific Products 25427 5,217.93 Laboratory Services&Supplies VWR Scientific Products 25802 6,026.52 Laboratory Services&Supplies&Chemicals Waste Management of Orange Transfer Stn. 25803 1,548.67 Reconciliation User Fee Refund Program Waxie Sanitary Supply 25429 1,894.64 Janitor&Household Service&Supplies Waxie Sanitary Supply 25806 416.58 Janitor&Household Service&Supplies Weather and Wind Instrument Co. 25430 414.55 Miscellaneous Parts and Supplies WebNewAnchor,Inc. 25807 1,500.00 Professional Services-Video Narration WEF 25808 217.00 Professional Organizations Meeting/Training/Memberships Weinberg,Martin 25478 3,884.60 Reconciliation User Fee Refund Program West Coast Soccer League,Inc. 25479 2,471.37 Reconciliation User Fee Refund Program West Lite Supply Company,Inc. 25431 862.43 Electrical/Electronic Equipment,Parts&Repairs Western States Controls 25432 1,912.12 Electrical/Electronic Equipment,Parts&Repairs Winonics,Inc. 25804 4,631.74 Reconciliation User Fee Refund Program Woodruff Spradlin&Smart 25497 47,513.11 Professional Services-Legal Xerox Corporation 25809 20,887.57 Computers,Software/Hardware&Managed Services Yale/Chase Materials Handling,Inc. 25811 421.96 Electrical/Electronic Equipment,&Electric Cart Parts&Repairs Yokogawa Ind Automation C/O Rm Controls 25434 367.43 Electrical/Electronic Equipment,Parts&Repairs Total Accounts Payable-Warrants $ 15,148,892.05 EXHIBIT B fin/210/Ic Page 12 of 13 11/5/2009 Claims Paid From 10/16/09 to 10/31/09 Vendor Warrant No. Amount Description Payroll Disbursements Employee Paychecks 43143 - 43190 $ 102,982.83 Biweekly Payroll(10/21/09) Employee Paychecks 43191 - 43192 1,613.00 Biweekly Payroll-Adjustment&IDEA(10/20/09) Employee Paychecks 43270 - 43270 617.53 Interim Payroll-Correction(10/30/09)` Direct Deposit Statements 178527 -179102 1,431,223.98 Biweekly Payroll(10/21/09) Total Payroll Disbursements $ 1,536,437.34 `Checks 43193 to 43269 were printed out of numerical order to be issued in November. Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 792,621.13 Biweekly Payroll(10/21/09) Total Wire Transfer Payments $ 792,621.13 Total Claims Paid 10/16/09-10/31/09 $ 17,477,950.52 EXHIBIT B fin/210/lc Page 13 of 13 11/5/2009 Orange County Sanitation District MINUTES SPECIAL MEETING 2009 STRATEGIC PLAN WORKSHOP October 21 , 2009 y s A err Q � r�NG r E��° HE ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes of Board Workshop 10/21/09 Page 2 ROLL CALL A special meeting of the Board of Directors of the Orange County Sanitation District was held on October 15, 2008 at 5:00 p.m., in the District's Administrative Offices. Active and alternate Directors present were as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Doug Davert, Chair John Nielson X Larry Crandall, Vice Chair X Steve Nagel X John Anderson Jim Winder X Charles Antos Gordon Shanks X Tom Beamish X Rose Espinoza X Keith Bohr X Don Hansen X Bill Dalton Andrew Do X Jon Dumitru X Denis Bilodeau X Troy Edgar Ken Stephens X James M. Ferryman X Bob Ooten X Phil Luebben X Prakash Narain X Patsy Marshall X Fred Smith X Roy Moore X Ron Garcia X Joy Neugebauer X Al Krippner X Chris Norby Janet Nguyen X Sharon Quirk-Silva X Pam Keller X Brad Reese Bill Mac Aloney X David Shawver X Carol Warren X Christina Shea X Steven Choi X Harry Sidhu Lucille Kring A Sal Tinajero X David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Henry Charoen A Don Webb X Leslie Daigle X John Withers Douglas Reinhart STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Penny Kyle, Clerk of the Board; Bob Ghirelli; Nick Arhontes; Jim Herberg; Ed Torres; Lorenzo Tyner; Michael Gold; Jeff Reed; Barbara Collins; Juanita Skillman; Ryal Wheeler; Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS There were no public comments. Minutes of Board Workshop 10/21/09 Page 3 Update on Last Year's Goals Chairman Doug Davert and General Manager Jim Ruth provided opening remarks. Bob Ghirelli, Assistant General Manager, briefly reviewed the Strategic Plan, created in 2007, and noted that staff was able to complete 21 of 37 of the five-year goals contained in the plan. Proposed New Goals Proposed new goals for the Strategic Plan update were presented by members of the Executive Management Team on Leadership Development; Branding Initiative; Chemical Supplies; and Full Cost Recovery. Staff responded to Directors' questions on the proposed goals. The Board directed staff to refocus the branding initiative as a communications strategy. After much discussion, all were in agreement that staff should move forward updating the Strategic Plan to include the recommendations, as follows, and submit the plan to be considered by the Board of Directors at the November 1811 board meeting: • Leadership Development • Communications Strategy • Chemical Supplies • Full Cost Recovery ADJOURNMENT: The Chair declared the meeting adjourned at 6:58 p.m. Penny M. Kyle Clerk of the Board Orange County Sanitation District Orange County Sanitation District MINUTES BOARD MEETING October 28, 2009 sANrrAT�o N� THE 'E ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes of Board Meeting 10/28/09 Page 2 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on October 28, 2009 at 6:30 p.m., in the Administrative Offices. Following the Pledge of Allegiance and invocation, the roll was called and the Associate Clerk of the Board reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Doug Davert, Chair John Nielson X Larry Crandall, Vice Chair Steve Nagel X John Anderson Jim Winder X Charles Antos Gordon Shanks X Tom Beamish Rose Espinoza X Keith Bohr Don Hansen X Bill Dalton Andrew Do A Jon Dumitru Denis Bilodeau X Troy Edgar Ken Stephens X James M. Ferryman Bob Ooten X Phil Luebben Prakash Narain X Patsy Marshall Fred Smith X Roy Moore Ron Garcia X Joy Neugebauer Al Krippner Chris Norby X Janet Nguyen X Sharon Quirk-Silva Pam Keller X Brad Reese Bill Mac Aloney A David Shawver Carol Warren X Christina Shea Steven Choi X Harry Sidhu Lucille Kring Sal Tinajero X David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Henry Charoen A Don Webb Leslie Daigle A John Withers Douglas Reinhart STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Lilia Kovac, Associate Clerk of the Board, Nick Arhontes; Bob Ghirelli; Jim Herberg; Ed Torres; Lorenzo Tyner; Rich Castillon; Marty England; Dean Fisher; Norbert Gaia; Michael Gold; Mike McCarthy; Ryal Wheeler; Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel; Al Krippner; Drew Kolosky; Mitch Cochran Minutes of Board Meeting 10/28/09 Page 3 PUBLIC COMMENTS There were no comments. REPORT OF THE CHAIR Board Chair, Doug Davert, announced a 30-year service award to Mike McCarthy; reviewed the meeting schedule for the month of November; and referred to the letter of appreciation from Assemblyman Chuck DeVore for the Sanitation District's year-end review brochure. REPORT OF THE GENERAL MANAGER General Manager, Jim Ruth, provided a brief overview of the status of the GWRS System expansion; progress on IRWD agreement; and SAWPA negotiations. Michael Gold, Public Affairs Manager, reported on the recent trip to Washington, D.C. in efforts to secure federal funding for the SARI relocation, clean energy projects, secondary treatment and infrastructure upgrades. REPORT OF THE GENERAL COUNSEL General Counsel, Brad Hogin, did not give a report. RATIFICATION OF PAYMENT OF CLAIMS 1. MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims, as set forth on Exhibits "A" and "B", attached hereto and made a part of these minutes. ALL DISTRICTS 09/15/09 09/30/09 Totals $16,611,878.16 $30,915,786.47 Director Crandall abstained from discussion and voting on Warrant No. 24470. Directors Nguyen, Shea, Sidhu and Benavides abstained from discussion and voting on all warrants. Abstentions were pursuant to California Government Code Section 84308. CONSENT CALENDAR (2 - 3) 2. MOVED, SECONDED AND DULY CARRIED: Approve and file the minutes for the regular meeting held on September 23, 2009. Directors Neugebauer and Nguyen abstained from voting on approval of minutes. Minutes of Board Meeting 10/28/09 Page 4 3. MOVED, SECONDED AND DULY CARRIED: Approve the Access Agreement for Operation of a Hydrogen Fueling Station and Fuel Cell Related Research Activities, with the University of California, Irvine, in connection with Fuel Cell Hydrogen Gas Generation, Project No. SP-134, in a form approved by General Counsel. STEERING COMMITTEE (4) Chair Davert briefly reported that the Steering Committee toured the North County Yard facility to look at options how it will fit into the District's program and needs. 4. MOVED, SECONDED AND DULY CARRIED: Order Steering Committee Minutes for the regular meeting held on September 23, 2009 to be filed. OPERATIONS COMMITTEE (5 — 9) 5. MOVED, SECONDED AND DULY CARRIED: Order Operations Committee minutes for the meeting held on October 7, 2009 to be filed. Director Nguyen abstained from voting on approval of minutes. 6. MOVED, SECONDED AND DULY CARRIED: a) Establish a budget for Chemical Scrubber Conversions and Piping System Improvements, Project No. P2-106, in an amount of$3,261,000; and, b) Authorize the General Manager to negotiate a Professional Design Services Agreement with Dudek, Inc. for design and construction support services for Chemical Scrubber Conversions and Piping System Improvements, Project No. P2- 106. 7. MOVED, SECONDED AND DULY CARRIED: Approve a contingency increase of $277,172 (1%) to the Construction Contract with J. F. Shea Inc., for Ellis Avenue Pump Station Construction, Contract No. 1-10B, for a total contingency of$1,663,034 (6%). 8. MOVED, SECONDED AND DULY CARRIED: Approve the Memorandum of Understanding with South Orange County Wastewater Authority (SOCWA) to accept hauled waste from the SOCWA service area, in a form approved by General Counsel. 9. MOVED, SECONDED AND DULY CARRIED: Approve Change Order No. 8 to Purchase Order No. 102354 OB for Purchase of Ferric Chloride, Specification No. C- 2005-247, issued to Kemira Water at a unit price of$673.02 per dry ton delivered, plus applicable tax, indexed to Iron Age Black Foundry Busheling benchmark of $635/ton and a pricing correction factor of 34% of the difference of the benchmark and index on a quarterly basis, for an estimated annual contract amount of $5,050,000 for the period December 1, 2009 through November 30, 2010. Minutes of Board Meeting 10/28/09 Page 5 ADMINISTRATION COMMITTEE (10 - 12) 10. MOVED, SECONDED AND DULY CARRIED: Order Administration Committee minutes for the regular meeting held on October 14, 2009 to be filed. Director Nguyen abstained from voting on approval of minutes. 11. MOVED, SECONDED AND DULY CARRIED: a) Authorize the General Manager to enroll the Orange County Sanitation District in the Proposition 1A Securitization Program, managed by the California Statewide Communities Development Authority, for the immediate collection of the 8 Percent State Budget Reduction of Local Property Tax Revenues estimated to be $5 million, in a form approved by General Counsel; and, b) Adopt Resolution No. OCSD No. 09-15, Approving the Form of and Authorizing the Execution and Delivery of a Purchase and Sale Agreement and related documents with respect to the sale of the Seller's Proposition 1A Receivable from the State; and, Directing and Authorizing certain actions in connection therewith. 12. MOVED, SECONDED AND DULY CARRIED: a) Adopt Resolution No. OCSD 09- 16, Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Revenue Refunding Certificate Anticipation Notes, Series 2009B, such Notes Evidencing Principal in an Aggregate Amount of Not to Exceed $181,000,000, Approving an Official Statement in Connection with the Offering and Sale of such Notes and Authorizing the Execution of Other Necessary Documents and Related Actions; and, b) That the Orange County Sanitation District Financing Corporation approve the documents supporting and authorizing the Revenue Refunding Certificate Anticipation Notes, Series 2009B in an amount not to exceed $181,000,000. GWR SYSTEM STEERING COMMITTEE (13) 13. MOVED, SECONDED AND DULY CARRIED: Approve Joint Groundwater Replenishment System Steering Committee minutes for the meeting held on September 14, 2009, to be filed. Director Nguyen abstained from voting on approval of minutes. NON-CONSENT CALENDAR (14) 14. MOVED, SECONDED AND DULY CARRIED: a) Authorize the General Manager to competitively bid and subsequently award a facility repair contract to the lowest responsive and responsible bidder for the Plant No. 2 Primary Clarifier Sweep Mechanism Repairs, Project No. FE09-03-R, for an amount not to exceed $1,400,000, and, Minutes of Board Meeting 10/28/09 Page 6 b) Approve a contingency of$280,000 (20%). Chair Davert declared a recess of the Board of Directors of the Orange County Sanitation District at 6:55 p.m. * * * * * * * * * * * FINANCING CORPORATION (15) Roll Call A regular meeting of the Board of Directors of the Orange County Sanitation District Financing Corporation was held on October 28, 2009 at 6:55 p.m. in the Administrative Offices. The roll was called and the Associate Clerk of the Board reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Doug Davert, Chair John Nielson X Larry Crandall, Vice Chair Steve Nagel X John Anderson Jim Winder X Charles Antos Gordon Shanks X Tom Beamish Rose Espinoza X Keith Bohr Don Hansen X Bill Dalton Andrew Do A Jon Dumitru Denis Bilodeau X Troy Edgar Ken Stephens X James M. Ferryman Bob Ooten X Phil Luebben Prakash Narain X Patsy Marshall Fred Smith X Roy Moore Ron Garcia X Joy Neugebauer Al Krippner Chris Norby X Janet Nguyen X Sharon Quirk-Silva Pam Keller X Brad Reese Bill MacAloney A David Shawver Carol Warren X Christina Shea Steven Choi X Harry Sidhu Lucille Kring Sal Tinajero X David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Henry Charoen A Don Webb Leslie Daigle A John Withers Douglas Reinhart Minutes of Board Meeting 10/28/09 Page 7 STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Lilia Kovac, Associate Clerk of the Board; Nick Arhontes; Bob Ghirelli; Jim Herberg; Ed Torres; Lorenzo Tyner; Marty England; Dean Fisher; Norbert Gaia; Michael Gold; Ryal Wheeler; Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel b. MOVED, SECONDED AND DULY CARRIED: Approve the minutes for the meeting held on November 19, 2008. C. Lorenzo Tyner, Director of Finance, reported that the Financing Corporation would need to adopt Resolution No. FC-10 in order to proceed with the issuance of Certificates of Participation, Series 2009B, for an amount not to exceed $181,000,000. d. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. FC-10, Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Revenue Refunding Certificate Anticipation Notes, Series 2009B, such Notes Evidencing Principal in an Aggregate Amount of Not to Exceed $181,000,000, Approving an Official Statement in Connection with the Offering and Sale of such Notes and Authorizing the Execution of Other Necessary Documents and Related Actions. ADJOURNMENT: The Chair declared the meeting of the Orange County Sanitation District Financing Corporation adjourned at 6:58 p.m. RECONVENE IN REGULAR SESSION: The Board of Directors of the Orange County Sanitation District reconvened in regular session at 6:58 p.m. CLOSED SESSION There was no closed session. ADJOURNMENT: The Chair declared the meeting adjourned at 7:00 p.m. Lilia Kovac Associate Clerk of the Board Orange County Sanitation District STEERING COMMITTEE Meeting Date To 11/18/09 11/1/18/09 AGENDA REPORT Item Number Item Number 2 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Robert P. Ghirelli, Assistant General Manager Project Managers: Barbara Collins and Michael Gold GENERAL MANAGER'S RECOMMENDATION 1) Approve the Five-Year Strategic Plan dated November 2009; and, 2) Direct staff to implement goals and strategies contained in the Plan. SUMMARY The strategic plan has been updated for 2010 and contains a summary of accomplishments over the past year as well as levels of service and new goals. The plan includes OCSD's mission, vision and core values and does not carry any additional costs associated with the new goals. PRIOR COMMITTEE/BOARD ACTIONS November 19, 2008: Five-Year Strategic Plan update approved November 28, 2007: Five-Year Strategic Plan adopted. ADDITIONAL INFORMATION Strategic Plan Update Process In 2007, the Board of Directors held a series of workshops to develop a Five-Year Strategic Plan containing not only goals and levels of service, but also updated statements of mission, vision and core values. The three month process culminated in adoption of a new plan in November 2007. The plan was updated with new goals in November 2008 following a strategic planning workshop. To update the plan for 2010, the executive management team met in July 2009 to discuss preliminary ideas and suggestions for updates to the plan. These suggested goals were discussed at a joint meeting of department heads and managers in August. Following this meeting, the issues were distilled into four new goals proposed for the next five years. Staff drafted one-page issue papers for each goal that were presented to the Board of Directors. Form No.DW-102.1 Agenda Report—Board Revised: 09/01/2009 Page 1 Board Input On October 21, the Board of Directors participated in a workshop to discuss the four new goals. The well-attended meeting generated some comments and questions. While the discussion did not yield any new goals or significant modification of existing plans, several board members had comments and questions. A summary of the comments (and staff responses) is presented below: Goal 1—Leadership Development. There was board consensus on this item with the suggestion that if the program is successful, consideration be given to opening the program to participation by other Orange County agencies. Goal 2—Communications. After much discussion about the need for and scope of a branding initiative proposed by staff, the Board reached consensus support for recasting this goal as a communications initiative that would refresh and refocus existing outreach materials, explore emerging social media technology, and upgrade the website. Goal 3—Chemical Sustainability. There was board consensus for moving forward on this goal with a request to include measurable goals and benchmarks in the chemical sustainability plan. Goal 4—Cost Recovery. There was board consensus on this goal. Board Members requested that the GAP water project be included in the review and that OCSD continue to maintain its leadership role in regional issues such as the FOG (fats, oil, grease) control program and regional organizations such as the Southern California Coastal Water Research Project. Finally, the Board asked staff to continue with implementation of the Cooperative Projects Program to help local agencies correct sewer infiltration problems. Staff noted that while the program will end this year, we will consider worthwhile projects on a case- by-case basis as they are brought to our attention by local agency sponsors. Continual Improvement In addition to the new goals (marked "new" in the plan) there are some other minor changes from last year's plan. One outdated level of service target for the collection system was deleted and the level of service lost work day rate target value was made more stringent. Overall, the updated Strategic Plan continues OCSD's goal of moving from good to great through annual assessments and incremental changes. Each year, the Board will be asked to provide strategic leadership and guidance to District staff for setting goals and levels of service. The Steering Committee and Board are asked to adopt the new Five-Year strategic plan, which contains no new costs and will help guide the strategic direction of the organization and staff. Form No.DW-102.1 Agenda Report—Board Revised: 09/01/2009 Page 2 CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Form No.DW-102.1 Agenda Report—Board Revised: 09/01/2009 Page 3 Preparing for the future -gal Orange County Sanitation District Five-Year Strategic Plan November 2009 Orange County Sanitation District FivemYear Strategic Plan S A N 1 Tq Q � cc c� o -� cT�NG r ENv��o HE November 2009 November 2009 TABLE OF CONTENTS OCSD BOARD OF DIRECTORS STRATEGIC PLAN PROJECT TEAM MESSAGE FROM THE GENERAL MANAGER iv EXECUTIVE SUMMARY 5 A UNIFIED STRATEGIC PLAN 6 OVERVIEW 7 MISSION STATEMENT 8 VISION STATEMENT 9 CORE VALUES 10 RISK REGISTER 11 STRATEGIC GOALS & LEVELS OF SERVICE 12 Goals Completed Since 2007 13 Environmental Stewardship 15 Business Principles 17 Wastewater Management 19 Workplace Environment 21 APPENDIX A: NEW ISSUE PAPERS 23 APPENDIX B: PREVIOUS ISSUES PAPERS 28 APPENDIX C: GLOSSARY 39 November 2009 OCSD BOARD OF DIRECTORS Chair Doug Davert Vice Chair Larry Crandall City Active Director Anaheim Harry Sidhu Brea Roy Moore Buena Park Patsy Marshall Cypress Phil Luebben Fountain Valley Larry Crandall Fullerton Sharon Quirk-Silva Garden Grove Bill Dalton Huntington Beach Keith Bohr Irvine Christina Shea La Habra Tom Beamish La Palma Mark Waldman Los Alamitos Troy Edgar Newport Beach Don Webb Orange Jon Dumitru Placentia Constance Underhill Santa Ana Sal Tinajero Seal Beach Charles Antos Stanton David Shawver Tustin Doug Davert Villa Park Brad Reese Yorba Linda John Anderson Sanitary/Water Districts Costa Mesa Sanitary District James M. Ferryman Midway City Sanitary District Joy L. Neugebauer Irvine Ranch Water District John Withers Orange County Board of Supervisors Chris Norby STRATEGIC PLAN PROJECT TEAM James D. Ruth General Manager Robert P. Ghirelli Assistant General Manager Nick Arhontes Director of Operations and Maintenance James Herberg Director of Engineering Edward Torres Director of Technical Services Lorenzo Tyner Director of Administrative Services Barbara Collins Principal Analyst Michael Gold Public Affairs Manager November 2009 MESSAGE FROM THE GENERAL MANAGER The past year has indeed been a challenge not only for the Orange County Sanitation District, but our entire state and the country.The economic times we continue to face, including the State of California borrowing$5 million in OCSD - ratepayer dollars have made 2009 quite a year.Yet,throughout it all, we remain as committed as ever to our core mission of providing the highest levels of service to our customers while protecting our quality of life, public health and the environment. OCSD's success is due to the strength of the people serving this fine organization, particularly our Board of Directors providing strategic leadership and our staff who keep things running smoothly to make every day possible. When I joined this organization is 2006, one of my top priorities was charting a course of success with a dynamic strategic plan. In November 2007, our staff presented a new five-year plan to the Board of Directors, built around our new Mission,Vision and a set of Core Values that define what we do, who we are and whom we serve. We are in the third year of the original plan and I am proud to report that we continue to refine existing goals, add new ones and set levels of service that support our overall Mission. We are constantly monitoring our progress, striving to do better and being ever mindful that we serve the public and must maintain their trust. Given the backdrop of our challenging times,the 2010 Strategic Plan update focuses on being prepared for the future. Since 2007,we have completed over 50 percent of our goals. Last year, we added five new goals and this year, we are adding four. As I step back and look over our accomplishments of the past year, passing a sound financial plan for five years; continuing our aggressive capital improvement program injecting $1 million per day into Orange County's economy; and the successful dedication of the Steve Anderson Lift Station to support the Groundwater Replenishment System; I am confident that our Board and staff will continue to strive for excellence and maintain an eye towards future challenges. Our new goals add no new costs to our budget and I know our staff, at the Direction of our Board, will continue to push for greater efficiencies. I look forward to a thoughtful discussion with Board of Directors and staff on these important issues. Respectfully submitted, James D. Ruth General Manager iv November 2009 EXECUTIVE SUMMARY In November 2007,the Board of Directors adopted a new comprehensive strategic plan to steer OCSD's efforts and engage the organization to envision service levels and operational needs for the next five years. This year,the Strategic Plan is being updated to continue looking at a five-year horizon. Following a similar process to last year's update,the General Manager's Office initiated the planning effort with the Executive Management Team,then solicited input and ideas from managers and supervisors. In October 2009,the staff-generated ideas were presented to the Board of Directors during a workshop, where Board Members discussed and deliberated changes and additions to the plan. Driven by our Mission,Vision and Core Values,this Strategic Plan, updated for 2010, continues our aggressive efforts to meet the sanitation, health, and safety needs of the more than 2.5 million people we serve while protecting the environment where we live. In the past year, over 50 percent of the goals were completed. For 2010, this Strategic Plan presents four new goals and maintains the high standards set in the previous plans. These new goals were discussed at the October 21 Board of Directors workshop and include the following: • Providing Ongoing Leadership Development • Updating OCSD's Current Communications Program • Assessing and Mitigating the Risks of Chemical Supply Shortages • Full-Cost Recovery This Strategic Plan continues to chart a focused roadmap of success for the future of the Orange County Sanitation District. It addresses critical issues and challenges and communicates clear and concise future direction to OCSD staff. 5 November 2009 A UNIFIED STRATEGIC PLAN In creating this document, a considerable amount of thought was given to how a variety of existing planning resources would be used to create a unified Strategic Plan.The graphic below shows the relationship of these resources and how they relate to the overall structure and execution of the plan. The planning efforts start with the Board of Directors setting overall policy for the District. Board of Directors Mission Vision Core Values Five-Year Strategic Plan Goals Levels of Service Assessment of Risks Annual Business Plans Business Accountability Charters Staffing Plan Financial Plan Facilities Master Plan Asset Management Plan 6 November 2009 OVERVIEW Since 1954, the Orange County Sanitation District has provided wastewater treatment to the residents and businesses of northern and central Orange County and is the third largest wastewater treatment agency west of the Mississippi River. During fiscal year 2008-2009, OCSD collected,treated and disposed over 200 million gallons of wastewater every day. OCSD also recycled 100 percent of its biosolids and reclaimed over 80 million gallons per day. In July 2002, the Board approved disinfecting the effluent _ and proceeding with the planning, design, and construction i p g p g, g of facilities that will ultimately allow OCSD effluent to meet - - r— Federal Clean Water Act secondary treatment standards. r The current disinfection program includes over$5 million ' ° annually for chemicals, while the estimated capital construction cost to meet secondary treatment standards is $649 million. OCSD is currently in the midst of a $2.6 billion, ``'`;'.. = 20-year capital improvement program with an annual capital budget of nearly$300 million. Reclamation Plant No. I in Fountain Valley In addition to OCSD's partnership in the Groundwater Replenishment System and secondary treatment expansion, our capital improvement program includes critical rehabilitation of aging collection systems and treatment plant facilities, and upgrades to provide enhanced odor control and reduced air emissions. Against this backdrop of challenging issues, and to meet the large and complex needs of providing services to over 2.5 million people in the most effective and efficient way _ possible,the strategic planning process began in 2007 to continually map a five-year strategy. Treatment Plant No.2 in Huntington Beach Beginning with gathering input from the staff,with the leadership of the Board of Directors, OCSD developed its mission, vision, and values to allow all levels of the organization to take ownership in the strategic planning process. The original plan, along with OCSD's mission,vision and values was adopted in November 2007. For this update, the Executive Management Team once again developed ideas seeking input from managers and supervisors and presented four new goals for discussion by the Board of Directors. In the past year, several goals were completed by staff in the areas of climate change, engine emissions, information technology, biosolids, and leadership development. 7 November 2009 OCSD MISSION STATEMENT The Mission Statement is the basic foundation that defines why we exist. "We protect public health and the environment by providing effective wastewater collection, treatment, and recycling." i 8 November 2009 OCSD VISION STATEMENT The Vision Statement supports the Mission Statement by expressing a broad philosophy of what the Orange County Sanitation District strives to achieve now and in the future in the delivery of services to our customers,vendors, other agencies,the general public, and each other. The Orange County Sanitation District is committed to: r Making decisions in an open and honest way to produce optimum financial, environmental and societal results. 1 Cooperating with other stakeholders to protect the ocean and regional water resources for the people we serve. 1 Beneficially recycling wastewater, biosolids and _ = Y=R other resources using safe and effective processes and systems. l/ r- - Developing the best possible workforce by providing employees with opportunities to �i advance their careers through enhanced growth, responsibility, and professional development. 9 November 2009 CORE VALUES The Core Values support the Mission and Vision Statements by expressing the values, beliefs, and philosophy that guides our daily actions.They help form the framework of our organization and reinforce our professional work ethic. Honesty, Trust and Respect We aspire to the highest degree of integrity, honesty,trust, and respect in our interaction with each other, our suppliers, our customers, and our community. Teamwork and Problem Solving We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective and safe manner, and we acknowledge team and individual efforts. Leadership and Commitment We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve our objectives and goals. We are committed to act in the best interest of our employees, our organization, and our community. Learning and Teaching — Talents, Skills and Abilities We continuously develop ourselves, enhancing our talents, skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals. Recognition/Rewards We seek to recognize, acknowledge, and reward contributions to OCSD by our many talented employees. 10 November 2009 RISK REGISTER The Risk Register is a compilation of the various risks facing the Orange County Sanitation District, as seen by the District's management team. The 2009 Risk Register update came at a time of global turmoil, with a worldwide financial crisis starting in late 2008, a pandemic flu spreading, and deep cuts being made in state government, and other challenging events. Not surprisingly, management came up with a variety of risks that they perceived. In addition, in this update, management was asked to also identify opportunities—items that had an "upside"—where the risk was that the opportunity might be missed. The 2009 Risk Register Update identified these as the top risks: • Financial stability given stresses—refers to the risk of reduction of the Sanitation District's financial strength during a time of financial turmoil. • Disaster and aftermath—refers to natural disasters and their consequences, such as the need for business continuity,with earthquakes being the most-frequently mentioned natural disaster. • Staffing shortages—refers to the need to attract qualified and trained operators, mechanics and engineers to the Sanitation District at a time of constrained budgets and fiscal uncertainty. • California state bankruptcy—refers to the potential insolvency of the state and its impact upon the Sanitation District. • Construction challenges—refers to the challenges facing the Sanitation District as it manages a $2.6 billion capital improvement program and strives to meet the 2012 consent decree deadline for secondary treatment. The top opportunities for the 2009 Update are: • Better focus on mission—the opportunity to define more clearly the role of the Sanitation District • Chance to hire good people—the opportunity to find and hire competent and experienced people during a time when many are available. • Favorable project bidding environment—refers to the opportunity to get good bids on projects during a time when very competitive bids are coming in • Develop disinfection plan—opportunity to optimize and possibly reduce the usage of chemicals as the Sanitation District engages in capital improvements. Staff is in the process of developing plans to mitigate the identified risks and exploit the opportunities. For example, this strategic plan puts forth a strategy to better communicate the role of the Sanitation District, and proposes a plan to achieve long-term sustainability for the supply of chemicals used in the collection and treatment process. November 2009 STRATEGIC GOALS & LEVELS OF SERVICE On the following pages are the strategic goals and levels of service for the next five years. New goals for this report are noted and all goals include a projected completion time.The levels of service standards are measures of service that are seen by our customers as high priorities. Goals and levels of service are divided into four areas: • Environmental Stewardship—OCSD participates collaboratively in the protection of regional water resources for the benefit of the people we serve. • Business Principles—OCSD makes every decision based on short and long-term environmental, societal, and financial impacts (the triple bottom line). • Wastewater Management—OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. • Workplace Environment—OCSD provides an environment of partnership, growth, opportunity, responsibility and accountability. FU I - &Aga G T MR� t 12 November 2009 Goals Completed Since 2007 Since the adoption of the five-year plan in 2007, the following goals have been completed: Environmental Stewardship 1. Contaminants of Potential Concern (CPC)—Complete three phase testing and analysis of 550+CPC, prepare report on findings and recommendations, develop initial source control strategy if there are CPCs identified that require control. Completed FY07-08 2. Management System for Environmental Compliance—Implement a management control system for environmental compliance information that incorporates a dashboard-style report. Completed FY 07-08 3. Engine Emission Compliance—Complete study to evaluate alternatives for complying with lower emission limits in the South Coast Air Quality Management's Rule 1110.2. Initiate planning and design of demonstration testing of the most promising technology(s) identified in the study. Completed FY 07-08 4. Climate Change/Environmental Footprint Initiative—Develop an overall strategy for responding to climate change regulations and proactively adapting to the affects of climate change including identification and mitigation of greenhouse gases and adapting to any impacts to our facilities and operations. Completed FY08-09 5. Reclaiming Santa Ana River Interceptor Line(SARI) Flows—Meet with stakeholders, develop a list of obstacles that need to be overcome to reclaim the SARI Line and develop a strategy to obtain regulatory approval of reclaiming SARI Line flows. This goal was cancelled in FY08-09 due to inability to obtain regulatory approval Business Principles 1. Sewer Rate for Green Development—Submit for board approval an amendment to sewer rate ordinance with incentives for green developments. Completed FY07-08 2. Complete Facilities Master Plan Update—Complete a comprehensive update of the Facilities Master Plan and obtain Board approval. Completed FY07-08 3. Enterprise Information Technology Strategic Plan—Complete a District-wide information technology strategic plan. Completed FY09-10 4. Updating OCSD's Risk Register—Review and update OCSD's risk register to include an assessment of technical, regulatory,financial, and political risks (among others) and possible mitigation strategies. Completed FY07-08 13 November 2009 Goals Completed Since 2007 (continued) Since the adoption of the five-year plan in 2007, the following goals have been completed: Wastewater Management 1. Groundwater Replenishment System—Maximize the production of GWR System product water to augment and protect the Orange County groundwater basin with a goal of 70 mgd. Completed FY 08-09 Sustainable Biosolids Program— 2. Complete new in-county Compost Take-Back Program Plan strategy. Completed FY07-08 3. Evaluate the feasibility of deep injection/methane recovery including commissioning a study of the geological formations below Plants 1 and 2, and availability and acceptability of any existing wells. Completed FY 08-09 4. Evaluate option of processing some biosolids at the City of Los Angeles Terminal Island demonstration well. Completed FY08-09 Workplace Environment 1. Space Planning Study Recommendations—Complete relocation of staff housed in Information Technology Trailers, Administration Building, Control Center and Building 6. Completed FY07-08 2. Safety and Health Strategic Plan—Develop and implement a Safety and Health Strategic Plan for all OCSD activities. Completed FY 08-09 3. Human Resources Strategic Plan—Design, develop and implement human resources policies, practices systems and tools to ensure OCSD has a workforce that meets future needs of OCSD and the public it serves. Completed FY08-09 4. Succession Plan—Implement the succession management plan including management training and the creation of a Leadership Academy. Completed FY08-09 14 November 2009 Environmental Stewardship Goals OCSD participates collaboratively in the protection of regional water resources for the benefit of the people we serve. 1. Santa Ana River Interceptor Line Relocation—Work in conjunction with the County of Orange and the Federal Government to relocate the Santa Ana River Interceptor Line by March 2012. Targeted for completion in FY 11-12 Engine Emission Compliance— 2. Complete demonstration testing and negotiate engine emission limits and schedule with SCAQMD. Targeted for completion in FY 10-11 3. Implement capital improvements or operations modifications in order to achieve compliance. Targeted for completion in FY 13-14 Climate Change/Environmental Footprint Initiative— 4. Greenhouse Gas Compliance Activities Targeted for completion in FY 14-15 5. Adaptive Responses to Climate Change Targeted for completion in FY 14-15 f i I II II I I llll I •I I Demonstration testing of a catalytic converter on Plant No.2 Central Generation System Fnain— 15 November 2009 Environmental Stewardship Levels of Service FY 08-09 FY 09-10 OCSD will protect public health and the environment Results Target Provide capacity to collect and treat dry weather urban runoff 1.25 mgd Up to 4 mgd Maximum 10 mgd by 2020 Maximum off-site odor impact • Reclamation Plant No. 1 42 D/T 42 D/T 14 D/T by 2016 • Treatment Plant No. 2 48 D/T 48 D/T 17D/Tby2016 Air emissions health risk to community and employees, < 10 < 10 per one million people (for each treatment plant) Permit compliance (air, land, and water) 99% 100% FY 08-09 FY 09-10 OCSD will be a good neighbor Results Target Odor complaint response: • Treatment Plants within 1 hour 100% 100% • Collection System within 1 working day 100% 100% Number of odor complaints: • Reclamation Plant No. 1 36 32 • Treatment Plant No. 2 18 4 • Collection System 52 34 Respond to collection system spills within 1 hour 100% 100% 16 November 2009 Business Principles Goals OCSD makes every decision based on short and long-term environmental, societal, and financial impacts (the triple bottom line). 1. Strategic Business Plan—With Board concurrence, annually update and implement the Strategic Plan and Business Plan. Ongoing goal to be completed annually 2. Business Accountability Charters —Create Business Accountability Charters for each department consistent with those developed by managers and supervisors. Ongoing goal to be completed annually Review Interagency Agreements— 3. Conduct a comprehensive review of agreements with the Santa Ana Watershed Project Authority, and, if appropriate, reopen for discussion. Targeted for completion in FY 10-11 4. Conduct a comprehensive review of agreements with the Irvine Ranch Water District and, if appropriate, reopen for discussion. Targeted for completion in FY 10-11 5. Chemical Supplies(new)—Develop a Chemical Sustainability Plan that provides OCSD with options for obtaining wastewater treatment chemicals during chemical shortages, emergencies or complete stoppages. Targeted for completion in FY 10-11 6. Communications Initiative(new)—To create a more refreshed, refocused, redesigned and consistent communication program enabling OCSD to more effectively educate visitors, students, ratepayers, stakeholders and employees. Targeted for completion in FY 10-11 7. Full-Cost Recovery(new)—Finalize agreements that are comprehensive and agreeable to all agencies that utilize OCSD facilities and ensure a fair share recovery of costs for services. Targeted for completion in FY 10-11 8. Local Sewer Services—Implement the Board's four recommendations based on findings of staff's revenue adequacy report. Continue to seek an asset transfer to other agencies.Also transfer other local assets back to cities that are not serving a true regional purpose. Ongoing goal to be completed in FY 11-12 through FY 12-13 17 November 2009 Business Principles Levels of Service FY 08-09 FY 09-10 OCSD will exercise sound financial management Results Target COP service principle and interest < O&M expenses < O&M expenses Annual user fees Sufficient Sufficient to cover all O&M requirements Actual collection,treatment, and disposal costs per 4.73% under budget < 10% million gallons in comparison with the budget Annual variance from adopted reserve policy 14.35% > 95% FY 08-09 FY 09-10 OCSD will be responsive to our customers Results Target Respond to public complaints or inquires regarding 100% > 90% construction projects within 1 working day New connection permits processed within 92.4% >90% one working day 18 November 2009 Wastewater Management Goals OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. 1. Implement Energy Master Plan—After the completion of the plan, assess final recommendations to ensure adequate power resources and energy management. Ongoing goal to be completed annually Sustainable Biosolids Program— 2. Monitor City of Los Angeles' deep injection project and evaluate the regulatory and public relations components of undertaking the project. Ongoing goal to be completed annually 3. Conduct research to reduce the amount of biosolids produced. Ongoing goal to be completed annually 4. Prepare proposal for selecting a technology to sustainably manage the remaining one-third of our biosolids capacity. Targeted for completion in FY 10-11 5. Develop agreement Targeted for completion in FY 10-11 6. Disinfection of Final Effluent—Develop a cost effective program to sustain protection of public health associated with bacteria in the effluent and gain acceptance of any changes in the program by the public, regulators and other stakeholders. Targeted for completion in FY 10-11 7. Odor Control—Implement Odor Control Projects at Plant 1 (trickling filters) and Plant 2 (solids loading facility) by 2016. Targeted for completion in FY 15-16 19 November 2009 Wastewater Management Levels of Service FY 08-09 FY 09-10 OCSD will provide a safe reliable effluent for recycling Results Target Concentration of emerging chemical constituents 41 NDMA< 150 ppt of concern in Plant No. 1 secondary effluent 1.6 1,4-Dioxane< 5 ppb Thirty-day geometric mean of total coliform bacteria in effluent 62 < 1,000 mpn after initial dilution of 180:1 Industry compliance with permits to discharge into OCSD sewers 100% 100% permit compliance Meet secondary treatment standards BOD 36 mg/L BOD 100 mg/L BOD 30 mg1L by 2012 TSS 33 mg/L TSS 55 mg/L T55 30 mg1L by 2012 FY 08-09 FY 09-10 OCSD will manage flows reliably Results Target Frequency of use of emergency one-mile (78-inch diameter) 0 0 per year during outfall dry weather less than once per 3 years in peak wet weather Sanitary sewer spills per 100 miles 0.63 < 2.1 Contain sanitary sewer spills within 5 hours 100% 100% FY 08-09 FY 09-10 OCSD's effluent will be recycled Results Target Provide up to 104 mgd specification effluent to the 82 mgd 104 mgd Groundwater Replenishment System OCSD will implement a sustainable biosolids management FY 08-09 FY 09-10 program Results Target National Biosolids Partnership Certification for Biosolids 5 Year Maintain Environmental Management System Recertification July certification 2008 Percent of biosolids recycled 100% recycled > 95% recycled 0% landfill < 5% landfill 20 November 2009 Workplace Environment Goals OCSD provides an environment of partnership, growth, opportunity, responsibility and accountability. 1. North County Yard—Open the North County Yard and training facility and complete the relocation of selected staff and equipment to the facility. Implement flex space for added agency-wide needs as appropriate. Targeted for completion in FY 10-11 2. Providing Ongoing Leadership Development(new)—Maximize the development of a pool of dedicated and talented employees ready to lead OCSD into the future. Targeted for completion in FY 10-11 1 3 t North County Yard facility in Garden Grove. 21 November 2009 Workplace Environment Levels of Service FY 08-09 FY 09-10 OCSD will take care of its people Results Target Training hours per employee 58 45 per year Employee injury incident rate District 3.6 Industry O&M 3.6 average 4.6 Mandatory OSHA training requirements 94% 100% Hours worked since last lost work day 150,000 1,000,000 Reduce by 20%the number of work hours lost as a result of 2.65 2.5 employee injuries and accidents 22 November 2009 APPENDIX A: NEW ISSUE PAPERS In preparation for the October 15, 2008 Board Workshop to discuss the proposed goals for 2009, staff prepared five issue papers related to the new goals.These papers are attached for your reference.The appendix includes issue papers on the following topics: • Providing Ongoing Leadership Development • Updating OCSD's Communications Program • Assessing and Mitigating the Risks of Chemical Supply Shortages • Full-Cost Recovery Dedication of the Steve Anderson Lift Station on April 17,2009 23 November 2009 Providing Ongoing Leadership Development Why is this issue important to the District? As baby boomers begin to retire in significant numbers over the next five years, the nation's workforce will begin to experience a shortage in qualified leaders. OCSD will be impacted by this trend as well. For example, by 2015 around half the current managers and supervisors will be eligible for retirement. While the District has pursued an aggressive strategy to strengthen and grow future leaders through its Profession of Management and Leadership Academy programs, this clearly will not be enough. By next year all management staff will have completed these programs and the Succession Management program will be fully established. However,these tools are only a foundation and in order to maintain a world-class organization,the District needs to take its leadership development to the next level. A broader leadership development program needs to be implemented to identify and train future leaders. Goals • Identify key employees that will lead OCSD into the future. • Define and build upon the essential qualities needed to develop successful leaders for OCSD's future.These qualities will focus on dealing with change, motivating others, enhancing morale and promoting productivity and job satisfaction, among others. • Identify what other organizations are doing and what incentives and training might be needed to build a talented and stable leadership team. • Develop a new model for addressing OCSD's operational, environmental regulatory and leadership priorities in an era of limited resources and greater public scrutiny. Desired outcome • Maximize the development of a pool of dedicated and talented employees ready to lead OCSD into the future. 24 November 2009 Updating OCSD's Current Communications Program Why is this issue important to the District? The District is involved in many important activities and programs that directly affect the lives of millions of people and the environment.Yet,the logo and tools the District is using to communicate with our ratepayers, including its current fact sheets, and other important informational resources are out-of-date. As OCSD receives more press attention and reaches more students and constituents through tours, speaking engagements and classroom lectures, it is critical that the materials we use are consistent and current.This communications initiative will refresh, refocus and redesign the tools and programs used on a daily basis. In addition to the need to refresh our logo and communications program,this initiative will help OCSD when competing for grant and appropriation funding for future programs and projects and in our recruiting efforts as we attempt to attract and retain a talented workforce. Goals • Refresh or update logo • Update core communications materials such as letterhead, and information sheets. • Refocus and redesign all electronic and printed materials to be consistent with one another and consistent with OCSD's mission,vision and values. • Create a new policy and standards manual to ensure compliance and a consistent use throughout the agency. Desired outcome • To create a more refreshed, refocused, redesigned and consistent logo and communications program enabling OCSD to more effectively inform and educate visitors, students, ratepayers, stakeholders and employees. 25 November 2009 Assessing and Mitigating the Risks of Chemical Supply Shortages Why is this issue important to the District? OCSD uses large volumes of several chemicals to mitigate odors, enhance primary settling of solids, reduce bacteria formation in the activated sludge plants, flocculate solids to enhance dewatering, and disinfect and then dechlorinate the effluent prior to discharge into the receiving waters.These wastewater treatment chemicals play a critical role in protecting public health and the environment. OCSD and other large wastewater treatment agencies require large volumes of chemicals that can only be provided by one supplier or a very limited number of suppliers.All of these large agencies have also experienced price increases and chemical shortages in recent years. Goals • Investigate the domestic and global chemical markets for typical wastewater and odor chemicals. • Identify possible causes of disruptions in the chemical supply chain. • Identify potential temporary suppliers capable and willing to provide chemicals during shortages. • Identify viable alternative chemicals that can be substituted for current OCSD chemicals during shortages. • Identify not only the procurement costs, but the transportations costs, of possible temporary or alternative chemical procurements. • Identify quality control assurances of chemicals procured outside the country. Desired outcome • Develop a Chemical Sustainability Plan that provides OCSD with options for obtaining wastewater treatment chemicals during chemical shortages, emergencies or complete stoppages. 26 November 2009 Full-Cost Recovery Why is this issue important to the District? The District has several existing agreements with external agencies including the Santa Ana Watershed Project Authority(SAWPA) and the Irvine Ranch Water District (IRWD) which were originally signed in the 1970's and 1980's.There are other existing agreements signed between these agencies in the last 20 years. When many of these agreements were signed,the District often provided funds and resources to assist other agencies in improving the water quality and health of the citizens of the watershed. In this pursuit, OCSD allowed benefits to agencies without fully developing an equitable cost-sharing model. While this was well-intended and generated results,the District's mission was overly broad. Now,through a series of more focused efforts, OCSD has developed a mission-specific Strategic Plan with detailed goals and objectives. The combination of the District's new enhanced strategic focus, more stringent regulatory requirements (Federal Clean Water Act secondary treatment standards) and new economic realities (economic environment in general and requirements of Proposition 218), OCSD must review its external agreements and ensure that these agreements provide full cost recovery from the agencies with which it does business. District staff has already began working with these agencies to ensure the District is recovering the full costs of services provided. Goals • Continue to meet with SAWPA and IRWD staff for consensus or agreement on major issue resolution. • Continue to include future planning issues that may impact new agreements. • When possible, consolidate small agreements into more comprehensive future agreements. • Negotiate new agreements that ensure all agencies are paying a fair share for services provided by the District. Desired outcome • Finalize agreements that are comprehensive and agreeable to all agencies and ensure a fair share for District services. 27 November 2009 APPENDIX B: PREVIOUS ISSUE PAPERS Due to the complex nature of many of the challenges that went into the preparation of this Strategic Plan, a series of issue papers were created to assist in better understanding the issues currently facing the Orange County Sanitation District. Included in appendix are position papers on the following subjects: • Groundwater Replenishment System • Disinfection of Final Effluent • Environmental Footprint Initiative • Updating OCSD's Risk Register • Human Resources Strategic Plan • Biosolids Management • Groundwater Replenishment System • Air Quality • Odor Control • Proposition 218 Notification 1 l - rte�h. Initial mechanical start-up of EnerTech's Regional Biosolids Processing Facility in Rialto on October 16,2008. 28 November 2009 Groundwater Replenishment System November 2008 Why is this issue important to OCSD? The Orange County Sanitation District(OCSD) has shared in construction costs for Phase 1 of the Groundwater Replenishment (GWR) System with the Orange County Water District (OCWD), each agency paying equal shares of 50 percent.The first phase has been constructed to reclaim up to 70 million gallons per day(mgd) of water, and will defer the need for OCSD to construct a new ocean outfall. Ultimate planning for the GWR System allows for reclaiming up to 130 mgd.The major GWR System pipelines and other components have been sized to accommodate this expansion; however, the advanced water purification facilities are sized for 70 mgd. OCSD has not committed additional funding for expanding the GWR System beyond the present phase. The GWR System began operation in January 2008, and is presently producing about 45 mgd of product water, reducing OCSD's ocean discharge flow from 225 mgd to 180 mgd. Completion of the Steven Anderson Lift Station (formerly Ellis Avenue Pump Station) will increase the amount of treated secondary effluent(specification water) available to the OCWD, allowing GWR System production to increase to near 70 mgd. Goals • Continue to strive for 104 mgd supply of specification water for reclamation with no planned OCSD capital cost contribution for expansion of the GWR System; • Complete construction of Steven Anderson Lift Station in the fourth quarter of FY 2008-09 and • Continue to study the potential for treating flow from the Santa Ana River Interceptor at Reclamation Plant No. 1 to increase the supply of specification water for reclamation. Desired Outcome • Maximizing the production of GWR System product water to augment and protect the Orange County groundwater basin with a goal of 70 mgd of product water by the end of FY 2008-09. 29 November 2009 Disinfection of Final Effluent November 2008 Why is this issue important to OCSD? OCSD began disinfection of our treated effluent in 2002 in response to two factors: • concern from the public that our effluent might be the cause or contributing to elevated bacteria levels in Huntington State Beach and • ocean monitoring data suggesting that on at least one occasion our effluent plume had come to within % mile of the Newport Pier. Since 2002 evidence has shown that OCSD's effluent was not the source of shoreline bacteria in Huntington Beach and that our plume is not coming to shore and creating a public health concern. The annual budget for adding chlorine to the effluent for disinfection and sodium bisulfite to remove most of the chlorine before discharging to the ocean is approximately$7.0 million. Since OCSD's facilities were not originally designed with disinfection in mind, there are physical constraints to operating in an efficient manner. In 2006, staff believed that it was prudent to have an independent review of our disinfection program to determine if it is meeting the intended purpose of protecting public health in a cost-effective manner and not increasing risks to the marine environment.The independent review panel was composed of nine members including a medical doctor, a wastewater engineer, a marine ecologist, a regulator, and a chemist among others. Goals • Through the National Water Research Institute (NWRI), commission a panel of experts to review OCSD's disinfection program and provide feedback and recommendations; • Obtain final recommendations from the NWRI Panel on the appropriateness of our current disinfection program and alternatives that should be considered and • Develop and implement strategies for responding to the recommendations including demonstration testing, regulatory approval and outreach to stakeholders. Desired Outcome • Cost effective program to sustain protection of public health associated with bacteria in our effluent. • Acceptance of any changes to our disinfection program by regulators, public and stakeholders. 30 November 2009 Environmental Footprint Initiative November 2008 Why is this issue important to OCSD? The issue of global climate change is gaining considerable interest from both the public and policy makers. As a public agency chartered with the mission to protect public health and the environment, OCSD should demonstrate leadership in this area. Moreover, wastewater operations consume large amounts of energy and produce green house gases (GHG). Despite the scientific disagreements about climate change, policy makers are addressing the issue.There are many opportunities for OCSD to also address these issues and shrink our environmental footprint. Goals • Calculation of the environmental footprint of OCSD's facilities; • Develop outreach materials describing green initiatives undertaken by OCSD; • Evaluate additional initiatives that the OCSD Board should consider; • Evaluate information from OCSD's research program on emerging green technologies and • Maximize the use of renewable fuels (digester gas). Desired Outcomes • Greater awareness of OCSD's sustainable initiatives; • Reduction in OCSD's environmental footprint through immediate greenhouse gas reduction measures and • A plan for implementing future sustainable initiatives. 31 November 2009 Updating OCSD's Risk Register November 2008 Why is this issue important to OCSD? Many leading organizations are formally applying risk management processes to identify and manage risks across many aspects of their business.The formalization of risk management processes is a logical step towards increased accountability and transparency placed on the Board and District management. In February 2006, strategic level risk assessment and mitigation workshops were completed by OCSD's Executive Management Team and District Managers. In May 2008,the register was updated to include additional information and to ensure alignment with current strategic plan. Assessment of these risks and their potential impacts must be identified, reviewed and mitigated in alignment with OCSD's Strategic Plan. Goals • Identify and assess strategic and organization-wide risks facing OCSD (including technical, regulatory, financial, and political) and to develop a high level risk register; • Identify mitigation measures that OCSD currently has in place; • Propose additional mitigation measures that OCSD considers appropriate to manage; • Review of risk register to ensure it represents a balanced portfolio of the risks and that the mitigation strategies are appropriate; • Develop a plan to monitor the effect of mitigation strategies to ensure that controls are in place and effective; • Develop a formal reporting process to the Board that includes possible revisions to the overall risk profile; • Develop protocols to provide assurance to stakeholders that in the annual strategic business plan processes are in place to manage risks organization wide and • Develop an action plan of responsibilities and timeframes for follow-up. Desired Outcome • An update of the Risk Register including mitigation strategies (current and proposed) responsibilities, and timeframes. 32 November 2009 Human Resources Strategic Plan November 2008 Why is this issue important to OCSD? Human Resources (HR) management has become more complex, evolving from primarily processing employee transactions to serving as a business partner, change agent and leader. OCSD's most important asset is its workforce. As a generation of this workforce retires, OCSD must be prepared to fill vacancies and prepare the next generation for opportunities, including leadership continuity. The HR strategic plan provides the focus for HR,the outcomes to be achieved and the associated roles and competencies needed. It creates clarity for planning and allocating resources.A long-range HR strategy will assure that actions are aligned with OCSD's overall vision, mission,values, and strategies. Goals • Improve HR processes, systems and infrastructure to provide high levels of efficiency, quality, customer service and cost-effectiveness. • Develop leading practices in the recruitment, retention and development of our workforce. • Support and promote the health and well-being of the workforce. • Foster and maintain a working and learning environment that is inclusive, supportive and free from discrimination. • Provide for organizational change initiatives through labor relations program that have been identified by management to grow a performance-based culture. • Focus the HR community on the needs of its customers through programs such as recognition and succession management. Desired Outcome • Design, develop, fund and implement HR policies, strategies, practices, systems, and tools to ensure OCSD has a workforce that meets the future needs of OCSD and the public it serves. 33 November 2009 Setting OCSD's Level of Service for Biosolids Management November 2007 Policy Issue for LOS Determination: Recognizing the Board's Resolution (OCSD 06-10)that supports biosolids reuse and encourages its member agencies to use compost made from biosolids,should OCSD continue to pursue our beneficial reuse policy or include disposal options for the remaining 1/3 of its non-contractually committed biosolids production? Staff Recommendation: OCSD should continue to pursue beneficial reuse of the remaining 1/3 of its biosolids production.Staff will continue to utilize cost-effective land application reuse options in Kern County and Arizona for as long as possible(anticipated to be less than five years)while pursuing a biosolids-to-energy alternative for the balance of its biosolids production. Analysis: OCSD currently produces 650 tons of biosolids per day, by 2012 when the new secondary treatment processes are fully operational, biosolids production is projected to increase by approximately 30%to 840 tons per day. OCSD currently manages its biosolids as follows via two contracts using five options: • 24 percent is land applied as Class A biosolids in Kern County($43.07/ton) 26 percent is land applied as Class B biosolids in Yuma County,Arizona ($45.44) 38 percent is composted to Class A in Kern County($63.09) 12 percent is composted to Class A La Paz County,Arizona ($49.74) 3 percent is land filled in Yuma County,Arizona ($45.44) • In 2003, OCSD adopted the Long-Range Biosolids Master Plan (Plan).The main policy recommendations from the Plan were: • Obtain at least three diverse biosolids management options • Limit participation in any market to one-half of the biosolids produced Limit contracts to one-third of total biosolids production Strive for increased biosolids-based compost use in Orange County Since the completion of the Plan, OCSD has entered into two long-term contracts that will service approximately two-thirds of OCSD's biosolids production. • EnerTech: 225 tons/day of biosolids-to-fuel in Rialto ($72.40) (on line 12/08) • Synagro:250 tons/day of biosolids composting in Kern County($63.09) Staff is primarily investigating biosolids-to-energy technologies and markets for the remaining one-third of OCSD's biosolids production because of our concern that biosolids composting markets are being saturated which could result in de-valuing of the product, making it non-sustainable.The private sector has already significantly invested in developing biosolids-to-energy technologies which enables wastewater agencies to participate in proven and sustainable markets.Staff will also be investigating biosolids management via deep-well injection and methane production which is currently being evaluated by the City of Los Angeles. Alternatives: OCSD will pursue long term contracts if possible for non-beneficial reuse landfill disposal. Cost Implications for the remaining 1/3 of OCSD's biosolids (2007 dollars): Energy Production: $85/ton—Annual cost=$7.8M Deep Well Injection: $40/ton—Annual cost=$3.7M Landfill Disposal: $60/ton—Annual cost=$5.5M 34 November 2009 Setting OCSD's Level of Service for the GWR System November 2007 Policy Issue for LOS Determination: The Orange County Sanitation District(OCSD) has shared in construction costs for Phase 1 of the Groundwater Replenishment(GWR)System with the Orange County Water District (OCWD),with each agency paying equal shares of 50%. Phase 1 will reclaim up to 70 million gallons per day(mgd) of water,and will defer the need for OCSD to construct a new ocean outfall estimated at$200 million. Ultimate planning for the GWR System allows for reclamation up to 130 mgd.The major GWR System pipelines and other components have been sized to accommodate this expansion; however,the advanced water purification facilities are sized for 70 mgd.OCSD has not committed additional funding for expanding the GWR System beyond the present phase. Staff Recommendation: OCSD will maintain its commitment for Phase 1 of the GWR System.This commitment for Phase 1 of GWR System includes the following: • Providing OCWD with secondary effluent to produce 70 mgd of reclaimed water • Providing 50 percent of capital costs($250 million)for Phase 1 • Providing 50 percent of 0&M costs($500,000 per year)to remove 1,4-Dioxane and NDMA • In addition to the commitment for Phase 1, staff recommends exploring"low cost"or"no cost"options to expand water availability for the GWR System, including: • Revisiting the potential use of the SARI with the Department of Health Services • Considering grant funding of future sewer diversion projects Analysis: In 1999,the OCSD Board of Directors(Board)approved Phase 1 of the GWR System,a joint funded project of OCSD and OCWD.The objective of Phase 1 is to maximize the use of treated effluent for water recycling and to manage OCSD's peak flow, deferring the construction of a second ocean outfall beyond 2020. The GWR System is anticipated to be fully operational in November 2007. Currently, OCSD Reclamation Plant No. 1 has sufficient wastewater to allow the GWR System to produce about 55 mgd of reclaimed water for the first year of operations.When the new Ellis Pump Station is completed in 2009,there will be sufficient flow to operate the GWR System at its full 70 mgd capacity. Even though sufficient flows will be available for Phase 1 of the GWR System,the daily low flow period (1:00 am to 8:00 am)will limit water availability for expansion of the System beyond Phase 1. Camp Dresser and McKee (CDM) has analyzed options to pump additional flows to Plant No.1, segregating reclaimable and non-reclaimable(SAWPA flows)wastewater streams,and constructing separate treatment plants. In light of the benefits of the current level of service versus the high costs of making future flow available for the GWR System, staff recommends that OCSD continue to work with OCWD to study lower cost options to maximize the amount of water that can be reclaimed. Alternatives: OCSD will be directing all available reclaimable flows to Plant No. 1 to maximize reclamation. In the future,as OCSD flows increase substantially,staff will recommend implementation of the most feasible and cost- effective options for increasing the quantity of flow available for reclamation. Estimated Cost Implications for Future Phases: • OCSD Diversions and Infrastructure—up to$700 million • Expansion of OCWD Advanced Water Purification Facilities—about$150 million • Every$1 million in OCSD expenditures increases single family user rates by$1.13 per year. 35 November 2009 Setting OCSD's Level of Service for Air Quality November 2007 Policy Issue: OCSD expects the South Coast Air Quality Management District to amend existing regulations to require significant reductions in common pollutants (smog,visibility impairment) in December 2007. A secondary public health benefit of this regulation is the reduction in air toxic emissions.The estimated capital improvement cost to meet the new requirements is$31 million. • If the new regulations are not approved then OCSD will be required by 2012, under the existing regulations,to notify all affected residents and business surrounding our facilities of health risks associated with our emissions. • OCSD can avoid issuing notifications by proactively installing air pollution control equipment to reduce the air toxic emissions below the notification level. Analysis: Currently, State law and the South Coast Air Quality Management District require facilities to inventory their air toxic emissions and conduct a Health Risk Assessment of the health risk impact of their emissions to surrounding residents and businesses. Public notification is required if the cancer risk exceeds 10 in one million and non-cancer risk exceeds 1. This means that 10 out of 1 million residents exposed to District air emissions, over a 70-year period, can contract cancer. It is anticipated that after completion of full secondary facilities in 2012, OCSD will exceed the threshold established by South Coast Air Quality Management District and OCSD will be required to notify affected communities. New regulations proposed by the South Coast Air Quality Management District would require OCSD to make significant reductions in common pollutants.The most technically feasible and lowest cost solution will be to add air pollution controls to the existing engines, which would provide the added benefit of reducing air toxic emissions below levels that require public notification. Alternatives(if the new regulations are not enacted): • Notify the affected public of the potential health risk from OCSD's toxic air emissions. OCSD would notify the public via direct mailings to the residents, businesses, and schools followed by public meetings.The corresponding materials will also be listed on the SCAQMD Web site and, possibly, printed in local newspapers. • Add air pollution controls to reduce risk to community below public notification level. Staff Recommendation: OCSD should apply feasible and cost-effective controls in order to reduce the air toxic emissions below the health risk notification level to the surrounding community and OCSD employees. 36 November 2009 Setting OCSD's Level of Service for Odor Control November 2007 Policy Issue: Thousands of homes surround OCSD's two treatment plants. Under current operating procedures, OCSD's goal is to contain odor nuisances within our property boundary. Historically, OCSD based our Level of Service on meeting hydrogen sulfide levels at the exhaust of odor control equipment within the treatment plant and at the fenceline of our property.Through significant study, staff has determined that hydrogen sulfide is not the best indicator of odor due to the presence of other odorous compounds.To gauge accurately odor nuisances, OCSD is changing to a scientifically based method of odor detection to determine accurately the Level of Service it wishes to achieve for communities surrounding our treatment plants.The Board must then choose the desired LOS. Analysis: In 2002, OCSD completed the Odor Control Master Plan, which provided specific recommendations and measures to control and reduce odors. Staff conducted an extensive evaluation of OCSD facilities by collecting and analyzing odor samples from the plant processing equipment. OCSD used a panel of 6-8 people, with average olfactory sensitivity, to determine the odor detection thresholds scientifically based on the number of times the sample needed to be diluted before the panelist detected odor. Staff then assigned an odor unit to the sample-the higher the number of dilutions needed to achieve the threshold,the stronger the odor. Staff then fed the data into a computer model to predict the impact to the community. With the modeling analyses completed, staff concluded that under normal operation conditions, by using a guideline of 10 D/T(dilutions to threshold) OCSD would eliminate odor to the surrounding community. OCSD currently meets a 40-50 D/T, which is 4 to 5 times greater than 10 D/T. After the currently approved CIP projects are constructed, OCSD is estimated to reach a level of 25-30 D/T(2.5 to 3 times greater than 10 D/T). Alternatives: • Adopt a treatment plant LOS of 25-30 dilutions/threshold. LOS will be achieved when the projects approved in the current CIP are constructed. Design and construct all future projects to a service level that will keep odors from that project on District property. Staff believes this level is 10 D/T but case-by-case modeling for the projects will be required.The result is no cost impact to the current approved CIP. • Adopt a treatment plant and future project design and construction LOS for odor control of 10 dilutions/threshold (within the fence line of OCSD) and incorporate four additional odor control projects into the CIP.The result is an increase of$69.6 million to the CIP and $648,000 for O&M. Staff Recommendation: Establish OCSD odor standard based on total odor(D/T). Design all new processes, structures and equipment at the wastewater treatment plants so that odors remain within treatment plant boundaries. Add two additional odor control projects (Plant 1 trickling filters and Plant 2 biosolids truck loading)to the CIP.The result is an increase of$17.6 million to the CIP and $300,000 annually for O&M. Conduct research on cost-effective alternatives to control odors from the primary treatment facilities at both plants and report back to the Board on future staff recommendations for any further odor control. 37 November 2009 Proposition 218 Notices for Annual Sewer Service User Fees November 2007 Proposition 218 was a constitutional initiative governing the establishment of any new taxes, property- related fees or assessments.This initiative was approved by the state's voters in November 1996 and applies to each of California's nearly 7,000 cities, counties, special districts, schools, community college districts, redevelopment agencies, and regional organizations. In order to raise a new tax, assessment, or property-related fee, or to increase an existing one, local governments must comply with Proposition 218 regulations. In general,these requirements are that local governments may use assessments and property-related fees only to finance projects and services that directly benefit property and that most revenue-raising measures be approved in an election. Sewer service user fees are specifically exempted from some of the requirements of Proposition 218. Most notably,they are exempt from the election requirements, but not the requirement that fees cannot exceed the reasonable cost of service. The Board has agreed with staff, however,that we will comply with all of the rest of the requirements, in a spirit of good governance.A notice of rate changes is mailed to every property owner whenever the rates are proposed to increase. Based on the approval to charge for local sewer services, a second (separate) Proposition 218 notice would be included.The rates are adopted through the ordinance process, and that requires a public hearing,two Board meetings and a 2/3 majority approval of the Board. Proposition 218 Notices notify the property owners of the public hearing that coincides with the second reading of the ordinance. Notices must be mailed to property owners 45 days before the public hearing. Mailing of Proposition 218 notices requires significant Sanitation District resources and staff time as staff works with all stakeholders to ensure that notices are printed correctly and mailed to over 550,000 property owners.Additional temporary staff is needed to answer phone calls from customers. Historically, three OCSD staff and two temporary staff answer phone calls for a minimum of four weeks. In addition to written responses (including email), phone calls are also noted and tallied by city of residence.This information is made available to the Directors prior to the public hearing. 38 November 2009 APPENDIX C: GLOSSARY Activated-sludge process—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. Biosolids—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process.This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Business Accountability Charters—A business unit strategic plan. Capital Improvement Program (CIP)—Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system— In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC)—Pharmaceuticals, hormones, and other organic wastewater contaminants. Dashboard—A computer based business tool used to visually track performance. Dilution to Threshold (D/T)—the dilution at which the majority of the people detect the odor becomes the D/T for that air sample. 1,4-Dioxane—A chemical used in solvents for manufacturing,fumigants and automotive coolant. Like NDMA, it occurs in the Groundwater Replenishment System water and is eliminated with hydrogen peroxide and additional ultra-violet treatment. Greenhouse gases—In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming("greenhouse effect"). 39 November 2009 GLOSSARY continued Groundwater Replenishment(GWR) System—A joint water reclamation project that proactively responds to Southern California's current and future water needs.This joint project between the Orange County Water District and the Orange County Sanitation District will provide 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. Million gallons per day(mgd)—A measure of flow used in the water industry. Most Probable Number(MPN)—Number of organisms per 100 ml that would yield a test result or the observed test result with the greatest frequency. Commonly used for coliform bacteria. NDMA—N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP)—An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency(EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. O&M—Operations and maintenance of the treatment plants facilities and collections system. Publicly-owned Treatment Works (POTW)—Municipal wastewater treatment plant. Recycling—The conversion of solid and liquid waste into usable materials or energy. Risk Register—An internal document that describes vulnerabilities of the Sanitation District. Santa Ana River Interceptor(SARI) Line—A regional brine line designed to convey 30 million gallons per day(MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer—Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District(SCAQMD)—Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment—Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. 40 November 2009 GLOSSARY continued Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids(TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter—A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban run-off—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed—A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed. 41 ,( S A N i f P/0cc s� Q G THE ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley,CA 92708-7018 (714) 962-241 1 www.ocsd.com STEERING COMMITTEE Meeting Date To 11/18/09 11/1/18/09 AGENDA REPORT Item Number Item Number 3 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Agreement with Irvine Ranch Water District (As Successor to County Sanitation District No. 14) Acquiring Ownership Interests, Assigning Rights and Establishing Obligations, in a form approved by General Counsel. SUMMARY Section 5 of Amendment No. 2 to the January 1986 Agreement, dated November 15, 1995 provided that District 14's contribution to the Orange County Sanitation District's (OCSD) reserves shall be calculated in a manner that is consistent with the method by which OCSD calculates the reserve share of the areas within the other OCSD predecessor districts. District 14 is funded by the Irvine Ranch Water District (IRWD). Per the agreement, IRWD is required to contribute its share of reserves based on the OCSD Reserve Policy. OCSD and IRWD have met to determine the amount required and the calculation that will be used going forward. District staff believes that the following reserves are related to and should be funded by District 14 for FY 2008-09, as follows: OPERATING AND CAPITAL RESERVES: Next Year's Dry Period (Cash Flow Reserve) $ 4.0 million Operating Contingency 0.8 million Operating & Capital Catastrophe Funds 1.7 million Capital Replacement and Refurbishment 1.7 million CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement Program Reserve 2.8 million TOTAL DISTRICT 14 RESERVE REQUIREMENT $11.0 million The attached Amendment No. 2 to the February 1986 Agreement is intended to set forth the method for calculating IRWD's contribution to the Target Reserves. Form No.DW-102 Agenda Report—Board Revised: 09/01/2009 Page 1 In determining the correct District 14 cash reserve balance of June 30, 2008, both agencies agreed to retain the accounting firm Mayer Hoffman MacCann P.C. (MHM). In their report dated April 20, 2009, MHM documented their findings, including the flume meter adjustment, change in depreciation methodology and the resulting accumulated interest in a letter report. OCSD and IRWD are in agreement with the findings of set forth in the MHM report, included as Exhibit B within this Amendment No 2. This Report concluded that OCSD held cash balances of$24,151,766 for District 14's account as of June 30, 2008. OCSD and IRWD have agreed to apply $11.0 million of this cash balance to meet IRWD's funding of the District 14 share of the Target Reserves funding, and agreed to apply the remaining cash balance of$13,151,766 to other invoices issued by OCSD to IRWD for District 14 expense shares as of June 30, 2009. ATTACHMENT Proposed Amendment No. 2 with IRWD Form No.DW-102 Agenda Report—Board Revised: 09/01/2009 Page 2 AMENDMENT NO. 2 TO AGREEMENT BETWEEN IRVINE RANCH WATER DISTRICT AND THE ORANGE COUNTY SANITATION DISTRICT (AS SUCCESSOR TO COUNTY SANITATION DISTRICT NO. 14) ACQUIRING OWNERSHIP INTERESTS, ASSIGNING RIGHTS AND ESTABLISHING OBLIGATIONS Th' Amendment No. 2 is made and entered into, to be effective the �� day of 2009, by and between the ORANGE COUNTY SANITATION DISTRICT, ("OCSD") and the IRVINE RANCH WATER DISTRICT, ("IRWD"). OCSD and IRWD are sometimes individually referred to herein as each"Party" and collectively as the "Parties." RECITALS This Amendment is entered into with reference to the following facts: WHEREAS, OCSD is a duly organized County Sanitation District, existing pursuant to the County Sanitation District Act, California Health& Safety Code Sections 4700 et seq., providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities; and WHEREAS, IRWD is organized and exists pursuant to the California Water District Law, California Water Code Section 34000 et seq., and also owns, operates, and maintains wastewater collection, treatment, and disposal facilities pursuant to powers granted by such Law; and WHEREAS, a group of OCSD's predecessor districts, County Sanitation District Nos. 1, 2, 3, 5, 6, 7, 11 and 13, and IRWD entered into an agreement entitled "Formation Agreement" dated March 13, 1985. Through the Formation Agreement, IRWD and the predecessor districts agreed to cooperate in the formation of County Sanitation District No. 14 of Orange County ("District 14") in order to assist IRWD in treating and disposing of wastewater from IRWD's service area. District 14 was subsequently formed as of January 1, 1986. District 14 lay entirely within IRWD's service area; and WHEREAS, District 14 on the one hand and OCSD's other predecessor districts, County Sanitation District Nos. 1, 2, 3, 5, 6, 7, 11 and 13 on the other hand, entered into that certain Agreement "For Purchase and Sale of Capacity Rights In Treatment, Disposal and Sewer Facilities," dated as of January 1, 1986 ("January 1986 Agreement"). Pursuant to the January 1986 Agreement, the other predecessor districts sold to District 14 (1) an equity ownership interest in joint facilities for the collection, treatment, and disposal of wastewater, and (2) an equity ownership interest in certain real properties. Before the predecessor districts were consolidated into OCSD in 1998, the joint facilities were known as the "Joint Works Treatment Facilities" or "JWTF." Since consolidation, OCSD has owned and operated the former JWTF. The former JWTF shall be collectively referred to herein as the "OCSD Wastewater System." The January 1986 Agreement also provided for District 14's equity interest in the OCSD Wastewater System to be adjusted annually based on a methodology set forth therein. and WHEREAS, District 14 and IRWD entered into that certain Agreement"Acquiring Ownership Interests, Assigning Rights and Establishing Obligations,"_dated as of February 13, 1986 (the "February 1986 Agreement"). In the February 1986 Agreement, IRWD agreed, inter alia, to fund District 14's 657201.1 share of the operations and maintenance costs of the OCSD Wastewater System and capital expenditures as determined pursuant to the January 1986 Agreement; and WHEREAS, pursuant to the terms and conditions established by the Local Agency Formation Commission for the 1998 consolidation, all contracts between IRWD and one or more of OCSD's predecessor districts, and all contracts between District 14 and one or more of OCSD's predecessor districts were assigned to OCSD and were to remain in full force and effect as necessary to carry out the original intent of those agreements, to the extent not inconsistent with the terms of the consolidation. In order to separately account for the costs that IRWD is contractually obligated to fund with respect to the former District 14, OCSD has since 1998 maintained a separate Revenue Area known as Revenue Area 14 ("RA 14"); and WHEREAS, OCSD's ongoing costs for the construction, operation, and maintenance of the OCSD Wastewater System include, among other costs, the costs of funding monetary reserves. As part of the budget process, OCSD's Board of Directors establishes target amounts of reserve funding for particular expenditure categories ("Target Reserves"). The Target Reserves for the period 2008-2010 are set forth in Exhibit "A" attached hereto and incorporated herein by reference; and WHEREAS, District 14 on the one hand and OCSD's other predecessor districts, County Sanitation District Nos. 1, 2, 3, 5, 6, 7, 11 and 13 on the other hand, entered into that certain "Amendment No 2"to the January 1986 Agreement, dated November 15, 1995. Amendment No. 2 provided in Section 5 thereof that District 14's contribution to OCSD's reserves shall be calculated in a manner that is consistent with the method by which OCSD calculates the reserve shares of the areas within the other OCSD predecessor districts; and WHEREAS, OCSD maintains that the amount of IRWD's contribution to the Target Reserves should be based on the former District 14's equity interest in OCSD's wastewater system. As of the fiscal year 2007-2008, the former District 14 held a 6% equity interest in the OCSD Wastewater System. Under OCSD's methodology, IRWD would be responsible for funding approximately$27.7 million in Target Reserves for fiscal year 2008-09, based on the total Target Reserves of$460.9 million multiplied by 6%; and WHEREAS, IRWD maintains that IRWD's funding of all categories of the Target Reserves in an amount equivalent to the former District 14's equity interest in the OCSD Wastewater System would result in IRWD's funding of certain categories of the Target Reserves that are not necessary for, and are not related to, RA 14's funding obligations borne by IRWD; and WHEREAS, the Parties desire to reach an agreement on the method for calculating IRWD's required contribution to the Target Reserves; and WHEREAS, this Amendment No. 2 to the February 1986 Agreement is intended to set forth the method for calculating IRWD's contribution to the Target Reserves,; and WHEREAS, the Parties jointly retained the accounting firm of Mayer Hoffman MacCami P.C. ("Mayer Hoffman") to assist them in determining the correct cash reserve balance for RA 14 as of June 30, 2008. On April 20, 2009, Mayer Hoffman documented their findings in a letter report. A copy of Mayer Hoffman's letter report is attached hereto as Exhibit"B" and incorporated herein by reference. 657201.1 AGREEMENT NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows: Section 1. Target Reserve Expenditure Categories. IRWD shall fund RA 14's contribution to OCSD's Target Reserves in the following expenditure categories: OPERATING AND CAPITAL RESERVES Next Year's Dry Period (Cash Flow Reserve) Operating Contingency Operating & Capital Catastrophe Funds Capital Replacement and Refurbishment CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement Program Reserve IRWD need not fund an RA 14 contribution to Target Reserves for any other expenditure category for which the OCSD Board of Directors has currently established a Target Reserve. In the event that the OCSD Board establishes a Target Reserve in the future for an expenditure category for which OCSD does not currently maintain a Target Reserve, IRWD shall fund the RA 14 contribution to such Target Reserve in an amount determined as set forth in Section 2. Section 2. Amount of IRWD Contribution. IRWD's funding of the RA 14 contribution to the Target Reserves shall be calculated annually according to the following formulas: Expenditure Category Formula OPERATING AND CAPITAL RESERVES Next Year's Dry Period IRWD Contribution= RA 14 Operation& Maintenance Budget x 50% (Cash Flow Reserve) Operating Contingency IRWD Contribution=RA 14 Operation& Maintenance Budget x 10% 657201.1 Operating & Capital IRWD Contribution= Target Reserve for Operating & Capital Catastrophe Funds Catastrophe Funds x 49.8% x District 14's Percentage of Equity Interest in the OCSD Wastewater System Capital Replacement and IRWD Contribution= Target Reserve for Capital Replacement and Refurbishment Refurbishment x 49.8% x District 14's % of Equity Interest in the OCSD Wastewater System CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement IRWD Contribution= Target Reserve for Capital Improvement Program Reserve Program Treatment and Disposal Projects Only x 50% x District 14's Percentage of Equity Interest in the OCSD Wastewater System "In the event that the OCSD Board establishes a Target Reserve in the future for an expenditure category for which OCSD does not currently maintain a Target Reserve and such expenditure category is a sub-category of the existing reserves listed above, the reserve amount will be determined using the corresponding above-listed calculation. If the new Target Reserve is a sub-category of the Environmental Requirement, Rate Stabilization, Short-Term Specific CIP Reserves or Debt Service Reserves, IRWD will not contribute to the new Target Reserve. If the new Target Reserve is not a sub- category of any of the categories listed above, IRWD shall contribute to such Target Reserve in an amount that is proportional to the contributions of the similarly situated areas served of OCSD. The parties agree to confer in good faith to reach an agreement on a formula for IRWD's funding of the RA 14 contribution to such Target Reserve in an amount that is consistent with the methodology reflected in the table above and that is proportional to the contributions of the other similarly situated areas served by OCSD. In the event that the OCSD Board reduces or discontinues an existing expenditure category of the Target Reserves, a consistent reduction or discontinuation shall apply to the RA 14 contribution." Section 3. Existing; Reserve Balances. Based on the methodology set forth in Section 2, the existing amount of Target Reserves and RA 14's existing equity interest in the OCSD Wastewater System, IRWD is currently obligated to fund the RA 14 contribution to the Target Reserves in the following amounts: Expenditure Category Current Amount OPERATING AND CAPITAL RESERVES Next Year's Dry Period (Cash Flow Reserve) $4 Million Operating Contingency $.8 Million Operating& Capital Catastrophe Funds $1.7 Million Capital Replacement and Refurbishment $1.7 Million 657201.1 CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement Program Reserve $2.8 Million Total Reserve Obligation $11 Million The Parties agree with the findings of set forth in the Mayer Hoffman report at Exhibit B. This Report concluded that OCSD held cash balances of$24,151,766 for RA 14's account as of June 30, 2008. OCSD agrees to apply $11.0 million of this cash balance to meet IRWD's funding of the RA 14 share of the Target Reserves funding, and agrees to apply the remaining cash balance of$13,151,766 to other invoices issued by OCSD to IRWD for RA 14 expense shares as of June 30, 2009. Section 4. Independent Review of Future Reserve Balances. IRWD may, at its own expense, engage an independent accounting firm on an annual basis to perform procedures similar to those employed by Mayer Hoffman. In the event IRWD elects to do so, OCSD will provide such accountants with access to its records and information as is needed to perform such review. Any such annual review must be completed within three years following the end of the fiscal year under review. Section 5. Interest on Reserve Balances. RA 14's share of the reserve and other funds held on behalf of IRWD for RA 14's account shall bear interest at the prevailing annual rate of return of OCSD. Section 6. Annual Adjustment of Reserve Funding. Within one hundred eighty (180) days after the close of each fiscal year on June 30 of each year, OCSD shall calculate IRWD's share of the Target Reserves according to the formulas set forth in Section 2, and return any excess to the extent that the reserve funds held on behalf of IRWD for the account of RA 14 exceed IRWD's share of the Target Reserves To the extent that the reserve funds held on behalf of IRWD for the account of RA 14 are less than IRWD's share of the Target Reserves, IRWD shall pay the amount of the deficiency to OCSD within thirty(30) days after OCSD notifies IRWD of IRWD's share of target reserves. The policy, set forth in Exhibit A, that excess accumulated funds be transferred to rate stabilization, shall not apply to RA 14. Section 7. Assignment._ This Amendment may not be assigned, in whole or in part, by either party without the prior written consent of the other Party. Section 8. Applicable Law. This Amendment shall be governed by the laws of the State of California. Section 9. Complete Agreement. 657201.1 This Amendment contains the full and complete agreement between the two Parties. All modifications must be in writing and approved by OCSD's and IRWD's Board of Directors. No oral agreements or representations or statements by any officer or employee of either Party shall affect or modify any of the terms and conditions of this Amendment. Section 10. Prior Agreements. This Amendment is intended to implement Section 5 of Amendment No. 2 to the January 1986 Agreement. Except as expressly amended by this Amendment, all terms and conditions of prior Agreements between the Parties, and all attachments and exhibits thereto, shall remain in full force and effect. IN WITNESS WHEREOF, this Amendment has been executed in duplicate in the names of the respective Parties by their duly authorized officers, effective as of the day and year first above written. [Signatures on the following page.] ORANGE COUNTY SANITATION DISTRICT By �CO Chair, Board rectors BY eral Manager By A? (T Clerk of the 4bard APPROVED AS TO FORM: BRADLEY R. HOGIN, GENERAL COUNSEL By r 114" , IRVINE RANCH WATER DISTRICT 657201.1 IRVINE RANCH WATER DISTRICT By 7�>4 I President, o ToDire-ctors By .1L General Ir anager ~1 i By Secretary APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE By 657201.1 AMENDMENT NO. 2 TO AGREEMENT BETWEEN IRVINE RANCH WATER DISTRICT AND THE ORANGE COUNTY SANITATION DISTRICT (AS SUCCESSOR TO COUNTY SANITATION DISTRICT NO. 14) ACQUIRING OWNERSHIP INTERESTS,ASSIGNING RIGHTS AND ESTABLISHING OBLIGATIONS This Amendment No. 2 is made and entered into, to be effective the day of , 2009, by and between the ORANGE COUNTY SANITATION DISTRICT, ("OCSD") and the IRVINE RANCH WATER DISTRICT, ("IRWD"). OCSD and IRWD are sometimes individually referred to herein as each "Parry" and collectively as the "Parties." RECITALS This Amendment is entered into with reference to the following facts: WHEREAS, OCSD is a duly organized County Sanitation District, existing pursuant to the County Sanitation District Act, California Health & Safety Code Sections 4700 et seq.,providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities; and WHEREAS, IRWD is organized and exists pursuant to the California Water District Law, California Water Code Section 34000 et seq., and also owns, operates, and maintains wastewater collection, treatment, and disposal facilities pursuant to powers granted by such Law; and WHEREAS, a group of OCSD's predecessor districts, County Sanitation District Nos. 1, 2, 3, 5, 6, 7, 11 and 13, and IRWD entered into an agreement entitled"Formation Agreement" dated March 13, 1985. Through the Formation Agreement, IRWD and the predecessor districts agreed to cooperate in the formation of County Sanitation District No. 14 of Orange County ("District 14") in order to assist IRWD in treating and disposing of wastewater from IRWD's service area. District 14 was subsequently formed as of January 1, 1986. District 14 lay entirely within IRWD's service area; and WHEREAS, District 14 on the one hand and OCSD's other predecessor districts, County Sanitation District Nos. 1, 2, 3, 5, 6, 7, 11 and 13 on the other hand, entered into that certain Agreement "For Purchase and Sale of Capacity Rights In Treatment, Disposal and Sewer Facilities," dated as of January 1, 1986 ("January 1986 Agreement"). Pursuant to the January 1986 Agreement, the other predecessor districts sold to District 14 (1) an equity ownership interest in joint facilities for the collection, treatment, and disposal of wastewater, and(2) an equity ownership interest in certain real properties. Before the predecessor districts were consolidated into OCSD in 1998, the joint facilities were known as the"Joint Works Treatment Facilities"or"JWTF." Since consolidation, OCSD has owned and operated the former JWTF. The former JWTF shall be collectively referred to herein as the "OCSD Wastewater System." The January 1986 Agreement also provided for District 14's equity interest in the OCSD Wastewater System to be adjusted annually based on a methodology set forth therein. and WHEREAS, District 14 and IRWD entered into that certain Agreement"Acquiring Ownership Interests, Assigning Rights and Establishing Obligations,"-dated as of February 13, 1986 (the "February 1986 Agreement"). In the February 1986 Agreement, IRWD agreed, inter alia, to fund District 14's 657201.1 share of the operations and maintenance costs of the OCSD Wastewater System and capital expenditures as determined pursuant to the January 1986 Agreement; and WHEREAS, pursuant to the terms and conditions established by the Local Agency Formation Commission for the 1998 consolidation, all contracts between IRWD and one or more of OCSD's predecessor districts, and all contracts between District 14 and one or more of OCSD's predecessor districts were assigned to OCSD and were to remain in full force and effect as necessary to carry out the original intent of those agreements, to the extent not inconsistent with the terms of the consolidation. In order to separately account for the costs that IRWD is contractually obligated to fund with respect to the former District 14, OCSD has since 1998 maintained a separate Revenue Area known as Revenue Area 14 ("RA 14"); and WHEREAS, OCSD's ongoing costs for the construction, operation, and maintenance of the OCSD Wastewater System include, among other costs, the costs of funding monetary reserves. As part of the budget process, OCSD's Board of Directors establishes target amounts of reserve funding for particular expenditure categories ("Target Reserves"). The Target Reserves for the period 2008-2010 are set forth in Exhibit"A" attached hereto and incorporated herein by reference; and WHEREAS, District 14 on the one hand and OCSD's other predecessor districts, County Sanitation District Nos. 1, 2, 3, 5, 6, 7, 11 and 13 on the other hand, entered into that certain "Amendment No 2"to the January 1986 Agreement, dated November 15, 1995. Amendment No. 2 provided in Section 5 thereof that District 14's contribution to OCSD's reserves shall be calculated in a manner that is consistent with the method by which OCSD calculates the reserve shares of the areas within the other OCSD predecessor districts; and WHEREAS, OCSD maintains that the amount of IRWD's contribution to the Target Reserves should be based on the former District 14's equity interest in OCSD's wastewater system. As of the fiscal year 2007-2008, the former District 14 held a 6% equity interest in the OCSD Wastewater System. Under OCSD's methodology, IRWD would be responsible for funding approximately $27.7 million in Target Reserves for fiscal year 2008-09,based on the total Target Reserves of$460.9 million multiplied by 6%; and WHEREAS, IRWD maintains that IRWD's funding of all categories of the Target Reserves in an amount equivalent to the former District 14's equity interest in the OCSD Wastewater System would result in IRWD's funding of certain categories of the Target Reserves that are not necessary for, and are not related to, RA 14's funding obligations borne by IRWD; and WHEREAS, the Parties desire to reach an agreement on the method for calculating IRWD's required contribution to the Target Reserves; and WHEREAS, this Amendment No. 2 to the February 1986 Agreement is intended to set forth the method for calculating IRWD's contribution to the Target Reserves,; and WHEREAS, the Parties jointly retained the accounting firm of Mayer Hoffman MacCann P.C. ("Mayer Hoffman") to assist them in determining the correct cash reserve balance for RA 14 as of June 30, 2008. On April 20, 2009, Mayer Hoffman documented their findings in a letter report. A copy of Mayer Hoffman's letter report is attached hereto as Exhibit`B" and incorporated herein by reference. 657201.1 AGREEMENT NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows: Section 1. Target Reserve Expenditure Categories. IRWD shall fund RA 14's contribution to OCSD's Target Reserves in the following expenditure categories: OPERATING AND CAPITAL RESERVES Next Year's Dry Period(Cash Flow Reserve) Operating Contingency Operating & Capital Catastrophe Funds Capital Replacement and Refurbishment CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement Program Reserve IRWD need not fund an RA 14 contribution to Target Reserves for any other expenditure category for which the OCSD Board of Directors has currently established a Target Reserve. In the event that the OCSD Board establishes a Target Reserve in the future for an expenditure category for which OCSD does not currently maintain a Target Reserve, IRWD shall fund the RA 14 contribution to such Target Reserve in an amount determined as set forth in Section 2. Section 2. Amount of IRWD Contribution. IRWD's funding of the RA 14 contribution to the Target Reserves shall be calculated annually according to the following formulas: Expenditure Category Formula OPERATING AND CAPITAL RESERVES Next Year's Dry Period IRWD Contribution=RA 14 Operation& Maintenance Budget x 50% (Cash Flow Reserve) Operating Contingency IRWD Contribution=RA 14 Operation& Maintenance Budget x 10% 657201.1 Operating & Capital IRWD Contribution=Target Reserve for Operating & Capital Catastrophe Funds Catastrophe Funds x 49.8% x District 14's Percentage of Equity Interest in the OCSD Wastewater System Capital Replacement and IRWD Contribution=Target Reserve for Capital Replacement and Refurbishment Refurbishment x 49.8% x District 14's % of Equity Interest in the OCSD Wastewater System CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement IRWD Contribution=Target Reserve for Capital Improvement Program Reserve Program Treatment and Disposal Projects Only x 50%x District 14's Percentage of Equity Interest in the OCSD Wastewater System "In the event that the OCSD Board establishes a Target Reserve in the future for an expenditure category for which OCSD does not currently maintain a Target Reserve and such expenditure category is a sub-category of the existing reserves listed above, the reserve amount will be determined using the corresponding above-listed calculation. If the new Target Reserve is a sub-category of the Environmental Requirement, Rate Stabilization, Short-Term Specific CIP Reserves or Debt Service Reserves, IRWD will not contribute to the new Target Reserve. If the new Target Reserve is not a sub- category of any of the categories listed above, IRWD shall contribute to such Target Reserve in an amount that is proportional to the contributions of the similarly situated areas served of OCSD. The parties agree to confer in good faith to reach an agreement on a formula for IRWD's funding of the RA 14 contribution to such Target Reserve in an amount that is consistent with the methodology reflected in the table above and that is proportional to the contributions of the other similarly situated areas served by OCSD. In the event that the OCSD Board reduces or discontinues an existing expenditure category of the Target Reserves, a consistent reduction or discontinuation shall apply to the RA 14 contribution." Section 3. Existing Reserve Balances. Based on the methodology set forth in Section 2, the existing amount of Target Reserves and RA 14's existing equity interest in the OCSD Wastewater System, IRWD is currently obligated to fund the RA 14 contribution to the Target Reserves in the following amounts: Expenditure Category Current Amount OPERATING AND CAPITAL RESERVES Next Year's Dry Period(Cash Flow Reserve) $4 Million Operating Contingency $.8 Million Operating & Capital Catastrophe Funds $1.7 Million Capital Replacement and Refurbishment $1.7 Million 657201.1 CAPITAL IMPROVEMENT PROGRAM RESERVE Capital Improvement Program Reserve $2.8 Million Total Reserve Obligation $11 Million The Parties agree with the findings of set forth in the Mayer Hoffman report at Exhibit B. This Report concluded that OCSD held cash balances of$24,151,766 for RA 14's account as of June 30, 2008. OCSD agrees to apply $11.0 million of this cash balance to meet IRWD's funding of the RA 14 share of the Target Reserves funding, and agrees to apply the remaining cash balance of$13,151,766 to other invoices issued by OCSD to IRWD for RA 14 expense shares as of June 30, 2009. Section 4. Independent Review of Future Reserve Balances. IRWD may, at its own expense, engage an independent accounting firm on an annual basis to perform procedures similar to those employed by Mayer Hoffinan. In the event IRWD elects to do so, OCSD will provide such accountants with access to its records and information as is needed to perform such review. Any such annual review must be completed within three years following the end of the fiscal year under review. Section 5. Interest on Reserve Balances. RA 14's share of the reserve and other funds held on behalf of IRWD for RA 14's account shall bear interest at the prevailing annual rate of return of OCSD. Section 6. Annual Adjustment of Reserve Funding. Within one hundred eighty (180) days after the close of each fiscal year on June 30 of each year, OCSD shall calculate IRWD's share of the Target Reserves according to the formulas set forth in Section 2, and return any excess to the extent that the reserve funds held on behalf of IRWD for the account of RA 14 exceed IRWD's share of the Target Reserves To the extent that the reserve funds held on behalf of IRWD for the account of RA 14 are less than IRWD's share of the Target Reserves, IRWD shall pay the amount of the deficiency to OCSD within thirty(30) days after OCSD notifies IRWD of IRWD's share of target reserves. The policy, set forth in Exhibit A, that excess accumulated funds be transferred to rate stabilization, shall not apply to RA 14. Section 7. Assignment. This Amendment may not be assigned, in whole or in part,by either party without the prior written consent of the other Party. Section 8. Applicable Law. This Amendment shall be governed by the laws of the State of California. Section 9. Complete Agreement. 657201.1 This Amendment contains the full and complete agreement between the two Parties. All modifications must be in writing and approved by OCSD's and IRWD's Board of Directors. No oral agreements or representations or statements by any officer or employee of either Party shall affect or modify any of the terms and conditions of this Amendment. Section 10. Prior Agreements. This Amendment is intended to implement Section 5 of Amendment No. 2 to the January 1986 Agreement. Except as expressly amended by this Amendment, all terms and conditions of prior Agreements between the Parties, and all attachments and exhibits thereto, shall remain in full force and effect. IN WITNESS WHEREOF, this Amendment has been executed in duplicate in the names of the respective Parties by their duly authorized officers, effective as of the day and year first above written. [Signatures on the following page.] ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors By General Manager By Clerk of the Board APPROVED AS TO FORM: BRADLEY R. HOGIN, GENERAL COUNSEL By IRVINE RANCH WATER DISTRICT 657201.1 By President, Board of Directors By General Manager By Secretary APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE By 657201.1 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 11/04/09 11/18/09 AGENDA REPORT Item Number Item Number z 7 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Martin Dix SUBJECT: BAYSIDE DRIVE IMPROVEMENT, CONTRACT NO. 5-61 GENERAL MANAGER'S RECOMMENDATION Approve a Reimbursement Agreement with the City of Newport Beach for construction of Bayside Drive Improvement, Contract No. 5-61, in a form approved by General Counsel. SUMMARY • The Orange County Sanitation District's (Sanitation District) Bayside Drive Improvement Project will rehabilitate a portion of the Bayside Drive Trunk Sewer by installing a structural cured in place lining and relining existing manholes as necessary. • The City of Newport Beach (City) has planned a sewer improvement project near 2137 Bayside Drive to repair and replace City sewers connecting to the Bayside Drive Trunk Sewer. • The proposed Reimbursement Agreement provides that the Sanitation District's contractor for the Bayside Drive Improvement Project will perform the City Sewer Project simultaneously with the Bayside Drive Trunk Sewer Project. Performing the work in this manner will minimize public impact. • The City will reimburse the Sanitation District $50,700 for design and construction costs, with a $10,000 contingency for change orders associated with the City Sewer Project. PRIOR COMMITTEE/BOARD ACTIONS August 2009 — Approved Plans and Specifications; approved Addendum Nos. 1, 2 and 3 to the plans and specifications; received and filed bid tabulation and recommendation; awarded a construction contract with Colich & Sons, L.P., for a total amount not to exceed $1,400,000; and approved a contingency of$84,000 (6%). August 2009 — Approved a Professional Consultant Services Agreement with Dudek, Inc. to provide construction support services, for an amount not to exceed $185,472; and, approved a contingency of $18,547 (10%). Page 1 May 2009 —Authorized staff to enter into negotiations with Dudek, Inc. for construction support services. October 2007 - Approved a Professional Services Agreement with Dudek, Inc. providing engineering services, for an amount not to exceed $349,561; and approved a 10% contingency ($34,956). CEQA FINDINGS The recommended action is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resource Code Section 21080.21 and categorically exempt pursuant to CEQA Guidelines 15282(k) because it consists of actions less than one mile in length within a public street or highway and other public rights-of-way for the installation of a new pipeline and/or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, and/or demolition of an existing pipeline. The recommended action is also within the scope of the Program Environmental Impact Report (EIR) for the Collection System Improvement Plan, SCH# 2006101018, dated March, 2007. Pursuant to CEQA Guidelines Section 15168(c)(4), the Sanitation District has used a written checklist to document its evaluation of the recommended action and has determined that the recommended action is within the scope of the program EIR. ADDITIONAL INFORMATION This Capital Improvement Project complies with the authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Page A-7, Item Number 22). Award Date: N/A Contract Amount: N/A Contingency: N/A JH:MD:eh HAdept\agenda\Operations Committee\Operations 2009\1109\05.5-61 Reimb Agmnt with NB.docx Page 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 11/04/09 11/18/09 AGENDA REPORT Item Number Item Number 3 8 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg, Director of Engineering Project Manager: Victoria Pilko SUBJECT: TEMPORARY UPGRADES TO PLANT SECURITY BARRIERS, PROJECT NO. J-108 GENERAL MANAGER'S RECOMMENDATION Authorize staff to enter into negotiations with RBF Consulting for construction support services for the Temporary Upgrades to Plant Security Barriers, Project No. J-108. SUMMARY • This project provides approximately 1,300 feet of security barrier along the north perimeter of Reclamation Plant No. 1 . • RBF Consulting satisfactorily prepared the design for Project No. J-108 and is uniquely qualified to provide support services during construction, commissioning, and closeout phases of this project. Staff is requesting permission to negotiate with RBF Consulting for construction support services. PRIOR COMMITTEE/BOARD ACTIONS September 2008 - Approved a Professional Design Services Agreement with RBF Consulting providing for engineering services for the Temporary Upgrades to Plant Security Barriers, Project No. J-108, for an amount not to exceed $321,415, and establish a 10% ($32,142) design contingency. ADDITIONAL INFORMATION N/A CEQA Project is determined to be exempt in accordance with Section 15301 (b). Notice of Exemption was certified on August 23, 2007 and filed on August 24, 2007. Form No.DW-102 Agenda Report—Board Revised: 09/01/2009 Page 1 DELEGATION OF AUTHORITY LEVEL This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: 101, Page A-11). Date of Approval Contract Amount Contingency N/A N/A N/A JH:VP:eh H:\dept\agenda\Operations Committee\Operations 2009\1 109\06.J-1 08 PCSA w RBF.docx Form No.DW-102 Agenda Report—Board Revised: 09/01/2009 Page 2 ADMINISTRATION COMMITTEE Meeting Date To Bd. of Dir. 11/04/09 11/18/09 AGENDA REPORT Item Number Item Number 2 10 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Receive and file the: 1) Sanitation District's Comprehensive Annual Financial Report for the year ended June 30, 2009, prepared by staff and audited by Mayer Hoffman McCann, Certified Public Accountants; 2) Report on Compliance and Internal Control for the year ended June 30,2009; and 3) Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets SUMMARY The Sanitation District's independent auditors, Mayer Hoffman McCann P.C. (MHM), have completed their examination of the Sanitation District's financial statements for the year ended June 30, 2009, and have issued an unqualified opinion. Each year, the Administration Committee reviews the results of the audit and the corresponding Auditor's report to the Committee. During the audit performed by MHM, no matters involving the internal control over financial reporting and its operations that the auditors consider to be material weakness were noted. Jennifer Farr, Partner, will attend the meeting to respond to any questions of Directors. This year, staff has again prepared the Comprehensive Annual Financial Report that includes the audited financial statements. For the last fourteen years, the Sanitation District has earned the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). This year's report will again be submitted to GFOA for their review in anticipation of another award. Form No.DW-102.3 Revised,09/01/2009 Page 1 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION None. ATTACHMENTS 1. Comprehensive Annual Financial Report for the year ended June 30, 2009. 2. Report on Compliance and Internal Control Over Financial Reporting. 3. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. 4. Report on Required Communication with Those in Governance. JDR:LT:MW:lc Form No.DW-102.3 Revised,09/01/2009 Page 2 Mayer Hoff man McCann PC. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Board of Directors Orange County Sanitation District Fountain Valley, CA In planning and performing our audit of the financial statements of the Orange County Sanitation District ("District") as of and for the year ended June 30, 2009, in accordance with auditing standards generally accepted in the United States of America, we considered Orange County Sanitation District's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and. would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the District's financial statements that is more than inconsequential will not be prevented or detected by the District's internal control. Matters conforming to this definition are as follows: (1) Capital Asset Deletions The District has good controls to identify and write off old furniture and equipment that has been disposed of. For disposal of larger capital assets (pipelines, facilities), the Project Manager informs the Finance Department of replacement projects when the capital project is established in the accounting system. During our testing of capital asset additions, we noted certain projects that involved the removal or replacement of fully- depreciated assets. Since the Finance Department was not made aware of the disposal of these removed assets, the assets were not deleted from the accounting system. The financial statements are not misstated as a result of this issue because the assets involved. have been fully depreciated. However, it is important that the District's subsidiary listing of capital assets only include assets currently in use. Recommendation We recommend that the District review the capital asset detail for fully depreciated assets that may no longer be in use. These assets should be removed from the District's accounting records. Orange County Sanitation District Page 2 This communication is intended solely for the information and use of management, Board of Directors and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. Irvine, California October 22, 2009 Mayer Hoffman [WcCan , An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine,California 92612 949-474-2020 ph i` 949-263-5520 fx I www.mhm-pe.com Board of Directors Orange County Sanitation District Fountain Valley, California Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets We have applied the procedures enumerated below to the appropriations limit worksheets prepared by the Orange County Sanitation District for the year ended June 30, 2009. These procedures, which were agreed to by the Orange County Sanitation District and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the Orange County Sanitation District in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and the results of those procedures were as follows: 1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote. Results: No exceptions were noted as a result of our procedures. 2. We recalculated the mathematical computations reflected in the District worksheets. Results: No exceptions were noted as a result of our procedures. Board of Directors Orange County Sanitation District Page Two 3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the District and to information provided by the State Department of Finance. Results: No exceptions were noted as a result of our procedures. 4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the Board of Directors for the prior year. Results: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the worksheets referred to above. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. Irvine, California October 22, 2009 Mayer Noffiman McCann RC. An Independent CPA Firm 2301 Dupont Drive,Suite 200 Irvine,California 92612 949-474.2020 ph 949-263-5520 fx www.mhrr,pc.com Administration Committee Orange County Sanitation District Fountain Valley, California SUMMARY OF AUDIT RESULTS We have audited the financial statements of the Orange County Sanitation District for the year ended June 30, 2009 and have issued our report thereon dated October 22, 2009. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under U.S. Generally Accepted Auditing Standards Our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we considered the District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. As part of obtaining reasonable assurance about whether District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Scope and Tinging of the Audit The scope and timing of the audit was communicated to the Chair of the Administration Committee in a separate letter. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. We advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the District's are described in note one to the financial statements. We noted no transactions entered into by the District during the year for which there is a lack of authoritative guidance or consensus. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. An example of the significant subjective judgments inherent in the financial reporting process is management's judgment Administration Committee Orange County Sanitation District Page 2 concerning which projects should be expensed as ordinary maintenance activities necessary to keep an asset operational for its originally established useful life versus those significant improvement, replacement, and life extending projects that should be capitalized as additions to capital assets. Significant Difficulties in Performing the Audit We encountered no difficulties in perforrning our audit. Material and Immaterial Misstatements Professional standards require us to accumulate all known and likely misstatements identified. during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No material misstatements were determined by the audit process. The accompanying financial statements do not reflect the effect of adjustments determined to be immaterial including the capitalization of interest costs associated with. capital projects that did not have bond funding and recording as prior period adjustments the results of certain contractual audits. Accordingly, these items were recognized by the District as expenses of the audit period. The aggregate effect of these immaterial items represented less than. 1% of the District's total assets. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have obtained certain representations from management that are included in the management representation letter dated October 22, 2009. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the District's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other•Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each. year prior to retention as the District's auditors. Administration Committee Orange County Sanitation District Page 3 However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of the Administration Committee and management of the District and is not intended to be and should not be used by anyone other than these specified parties. g A C. v: October 22, 2009 Irvine, California BOARD OF DIRECTORS Meeting Date To B 11/18/09 AGENDA REPORT Item Number Item Number 12 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Alberto Acevedo SUBJECT: REHABILITATION OF WESTSIDE PUMP STATION, CONTRACT NO. 3-52 GENERAL MANAGER'S RECOMMENDATION 1. Approve a contingency increase of $117,700 (2%) to the construction contract with Norm A. Olsson Construction, Inc., for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total contingency of $588,500 (10%); and, 2. Approve a Budget increase of $250,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of $11,275,000. SUMMARY • This project includes the design and construction of mechanical, electrical, instrumentation and controls, structural, landscape, and architectural improvements to bring the Westside Pump Station into compliance with Orange County Sanitation District (Sanitation District) Standards. • The project was awarded on June 25, 2008 and a Notice to Proceed was issued to the contractor on August 26, 2008. • There have been significant additional costs incurred on this project from a variety of issues, but most significantly from extensive damage to concrete in the existing pump station structure requiring much more extensive rehabilitation of the existing concrete than was originally known. • The project is 45% complete and in order to be able to cover any further unexpected field conditions or interferences, staff has determined that the contingency budget of 8% is inadequate and requests an additional contingency of$117,700 (2%) for a total project contingency of $588,500 (10%). • The existing project budget is not sufficient to cover the requested additional contingency and additional time for inspection and technical support staff during the construction phase. Therefore, we are requesting a budget increase of$250,000 for a total budget of $11 ,275,000. Form No.DW-102 Agenda Report—Board Revised: 09/01/2009 Page 1 PRIOR COMMITTEE/BOARD ACTIONS September, 2009 —Approved a budget increase of$516,000 for a total budget amount of $11,025,000; and approved a contingency increase of $176,550 (3%) for a total contingency of$470,800 (8%). June, 2009 —Approved budget revision in CIP Budget or FY 2009-10, for a total budget amount of$10,509,000. June, 2008 — Awarded a contract to Norm A. Olsson Construction, Inc., for an amount not to exceed $5,885,000. ADDITIONAL INFORMATION None. CEQA A Negative Declaration was filed for this project on March 9, 2005 and certified on May 25, 2005. BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (2009-10 Budget Update: Line item 11, Page A-7), but the budget is insufficient. The budget increases will be funded from unspent funds on other CIP projects. Date of Approval Contract Amount Contingency 06/25/08 $5,885,000 $294,250 (5%) 09/23/09 $176,550 (3%) 11/18/09 - Pending $117,700 (2%) $588,500 (10%) JH:AA:eh:sa H:\dept\agenda\Board Agenda Reports\2009 Board Agenda Reports\1109\Item 12.3-52 AR.docx Form No.DW-102 Agenda Report—Board Revised: 09/01/2009 Page 2