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Home My WebLink About09-28-2011 Board Agenda Packet 09/28/11 OCSD Board of Directors’ Agenda Page 1 of 4 Orange County Sanitation District Regular Meeting of the Board of Directors Wednesday, September 28, 2011 6:30 P.M. Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7130 AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Troy Edgar – Los Alamitos) DECLARATION OF QUORUM PUBLIC COMMENTS: If you wish to speak, please complete a Speaker’s Form (located at the table outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CLAIMS: 1. Ratify payment of claims of the District, by roll call vote, as follows: Claims Paid for the Period Ending: 08/15/11 08/31/11 Totals $8,240,799.61 $11,663,473.74 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: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. Approve minutes for the Regular Board Meeting held on August 24, 2011. 09/28/11 OCSD Board of Directors’ Agenda Page 2 of 4 STEERING COMMITTEE: 3. Approve minutes of the August 24, 2011, Steering Committee Meeting. OPERATIONS COMMITTEE: 4. Approve minutes of the September 7, 2011, Operations Committee Meeting. 5. Authorize the General Manager to enter into negotiations with Malcolm Pirnie, The Water Division of ARCADIS, Inc., for construction support services for the CenGen Cooling Water System Replacement, Job No. J-109. 6. Approve a budget increase of $30,000 for Coast Trunk Sewer Rehabilitation, Contract No. 11-26R, for a total budget amount of $9,151,000. ADMINISTRATION COMMITTEE: 7. Approve minutes of the September 14, 2011, Administration Committee Meeting. 8. Approve Amendment No. 2 to the Real Property Lease Agreement, Specification No. L-018, with Village Nurseries Wholesale, LLC, providing for a lease extension effective December 1, 2011 through November 30, 2016, with option to renew for two additional 5-year periods, at an annual rate of $7,150 plus the seasonally-adjusted change in the Consumer Price Index for all Urban Consumers. 9. Authorize the General Manager to issue Revenue Refunding Certificate Anticipation Notes, Series 2011B, as one-year fixed-rate obligations, in an amount not to exceed $155.0 million to replace the $154.665 million Revenue Refunding Certificate Anticipation Notes, Series 2010B maturing on November 23, 2011. 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 09/28/11 OCSD Board of Directors’ Agenda Page 3 of 4 (1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(a)) Case: Mladen Buntich Construction Company v. Orange County Sanitation District; OCSD v. Buntich Cross-Claim, Orange County Superior Court Case No. 00491934 (2) CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION (Government Code Section 54956.9(b)) Significant Exposure to Litigation Number of Potential Cases: 2 a) Claim of Kiewit Infrastructure West re. Secondary Activated Sludge Facility b) Claim of Shea Construction re. Trickling Filters at Plant No. 2, Job No. P2-90 (3) CONFERENCE WITH LEGAL COUNSEL RE. INITIATION OF LITIGATION (Government Code Section 54956.9(c)) Number of Potential Cases: 1 Potential litigation against the Santa Ana Watershed Project Authority to collect unpaid invoice amounts. (4) CONFER WITH DISTRICT NEGOTIATORS (Government Code Section 54954.5(f)) · Agency Designated Representative: James D. Ruth, General Manager · Employees: OCSD Executive Management Team (5) CONFER WITH DISTRICT NEGOTIATORS (Government Code Section 54954.5(f)) · Agency Designated Representatives: James D. Ruth, General Manager; Robert Ghirelli, Assistant General Manager; Jim Herberg, Assistant General Manager; and, Jeff Reed, Director of Human Resources. · Employees: OCSD Managers’ Group and Confidential Employees (6) PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957(b)(1)) Title: General Manager 09/28/11 OCSD Board of Directors’ Agenda Page 4 of 4 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: The Board of Directors will hold their annual Strategic Planning Workshop on Wednesday, October 19, 2011 at 5 p.m. ADJOURNMENT: Adjourn the Board meeting until the next regular Meeting on October 26, 2011, at 6:30 p.m. 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. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of Directors, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E. Ayala Clerk of the Board (714) 593-7130 mayala@ocsd.com Page 1 of 1 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 09/28/11 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director’s Handbook or call the office of General Counsel. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION See attached listing. ATTACHMENTS 1. Copies of Claims Paid reports from 08/01/11 – 08/15/11 and 08/16/11 – 08/31/11 fin/210/mm Page 1 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Accounts Payable Warrants A W Chesterton 41439 1,227.61 Repair & Maintenance Services and/or SuppliesAbsolute Standards, Inc.41440 385.00 Laboratory Services & SuppliesAce Glass, Inc.41441 166.04 Laboratory Services & Supplies ADS LLC 41584 1,980.00 Professional Services/Engineering Design Services AECOM USA, Inc.41442 24,175.03 Professional Services/Engineering Design ServicesAerotek415852,424.75 Professional Services/Temporary Services Air Liquide America Corp.41586 1,254.44 Laboratory Services & Supplies Airgas Safety, Inc.41443 2,673.78 Safety, Security, Health Equipment, Supplies, and Services Airgas Safety, Inc.41587 1,842.33 Safety, Security, Health Equipment, Supplies, and ServicesAirgas West 41444 782.26 Repair & Maintenance Services and/or SuppliesAirgas West 41588 281.18 Repair & Maintenance Services and/or Supplies All American Asphalt 41424 39,013.25 Repair & Maintenance Services and/or Supplies American Society of Mechanical Engineers 41445 140.00 Professional Organizations Meeting/Training/MembershipAnn H. Brandvoid 41743 121.06 Meeting/Training Expense ReimbursementApplied Filter Technology, Inc.41579 33,002.35 Repair & Maintenance Services and/or Supplies Aquatic Biosystems, Inc.41589 401.50 Laboratory Services & Supplies Arizona Instruments, L.L.C.41591 463.92 Electrical/Electronic Equipment, Parts & RepairsArturo Diaz 41745 132.00 Meeting/Training Expense ReimbursementASCE 41446 240.00 Professional Organization & Meeting/Training Registration AT & T Mobility II, L.L.C.41448 8,264.72 Telecommunications AT & T Universal Biller 41447 36.07 TelecommunicationsAT & T Universal Biller 41592 3,363.02 TelecommunicationsATM AA, Inc.41594 280.00 Lab Services AWSI 41449 322.00 Professional Services - DOT Program Administration B & K Electric Wholesale 41450 108.14 Electrical/Electronic Equipment, Parts & Repairs Ball Euclid Plaza, LLC 41451 10,362.38 Reconciliation User Fee Refund ProgramBattery Specialties 41452 100.85 Batteries, Various Battery Systems, Inc.41595 1,930.23 Repair & Maintenance Services and/or Supplies Bee Man Pest Control, Inc.41453 165.00 Pest Control Services BP Energy Company 41580 40,360.76 Natural GasBrenner-Fiedler & Assoc., Inc.41596 22.86 Laboratory Services & Supplies Brithinee Electric 41454 7,788.09 Electrical/Electronic Equipment, Parts & Repairs Brithinee Electric 41597 9,538.79 Electrical/Electronic Equipment, Parts & Repairs Bryan Willis 41576 89.25 Meeting/Training Expense ReimbursementBurke Engineering Co.41598 1,160.75 Electrical/Electronic Equipment, Parts & RepairsBurlington Safety Laboratory of CA, Inc.41599 1,486.09 Safety, Security, Health Equipment, Supplies, and Services Bush & Associates, Inc.41455 3,374.00 Professional Services/Surveying Services California Dept. of Child Support 41600 2,021.51 Judgments PayableCalifornia Relocation Services, Inc.41456 157.50 Miscellaneous Services - Moving/RelocationCarl Warren & Co.41457 300.00 Professional Services - Workers' Compensation Carol Wafer 41601 542.77 Judgments Payable Carollo Engineers 41458 5,084.99 Professional Services/Engineering Design ServicesCASA416022,125.00 Professional Organizations Meeting/Training/MembershipCDW Government, Inc.41581 126,239.16 Computers, Software/Hardware Charles P. Crowley Co.41603 4,186.40 Repair & Maintenance Services and/or Supplies City of Fountain Valley 41604 4,050.38 Water UseCity of Huntington Beach 41489 15,273.65 Water UseCity of Huntington Beach 41642 23.25 Water Use Claims Paid From 08/01/11 to 08/15/11 fin/210/mm Page 2 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 City of Seal Beach 41541 205.18 Water Use Cole-Parmer Instrument Co.41605 153.17 Laboratory Services & SuppliesCompressor Components of California 41459 8,582.29 Repair & Maintenance Services and/or Supplies Connell Chevrolet\GEO 41460 264.00 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Consolidated Electrical Distributors 41606 40.24 Electrical/Electronic Equipment, Parts & Repairs Consumers Pipe & Supply Co.41607 1,355.02 Repair & Maintenance Services and/or SuppliesConverse Consultants 41461 11,055.00 Professional Services/Professional Services/Materials & Geotechnical Testing Corporate Image Maintenance, Inc.41425 48,245.00 Janitor & Household Service & Supplies County of Orange - Health Care Agency 41609 325.00 Governmental Agency Fees & Charges County of Orange - Health Care Agency 41610 325.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 41462 705.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 41608 20,441.25 Governmental Agency Fees & Charges County of Riverside 41611 198.00 Notice of Exemption Filing Fee - FE05-46 County Wholesale Electric Co.41612 131.44 Electrical/Electronic Equipment, Parts & RepairsCourt Order 41653 2,179.38 Judgments PayableCourt Order 41655 150.00 Judgments Payable Court Order 41664 225.00 Judgments Payable Court Order 41692 108.00 Judgments PayableCourt Order 41742 912.50 Judgments PayableCR&R, Inc.41463 315.00 Waste Disposal CR&R, Inc.41613 315.00 Waste Disposal CS-AMSCO 41614 185.37 Repair & Maintenance Services and/or SuppliesCWEA Membership 41464 132.00 Professional Organizations Meeting/Training/MembershipCxtec41615290.88 Computers, Software/Hardware Dapper Tire Co.41616 773.77 Autos, Trucks & Marine Equipment, Parts, Accessories & Services David Wheeler Pest Control, Inc.41465 1,638.00 Pest Control Services David Wheeler Pest Control, Inc.41617 630.00 Pest Control ServicesDavid's Tree Service 41618 500.00 Groundskeeping Desert Pumps & Parts, Inc.41466 111.61 Repair & Maintenance Services and/or Supplies Desert Pumps & Parts, Inc.41619 549.97 Repair & Maintenance Services and/or Supplies Detection Instruments Corporation 41467 431.27 Electrical/Electronic Equipment, Parts & RepairsDig-Smart, L.L.C.41468 3,840.00 Computer Applications & Services Dindo A. Carrillo 41744 969.31 Meeting/Training Expense Reimbursement Dunn-Edwards Corporation 41620 53.76 Facilities, Maintenance, Services & Supplies Eagle Protection of California 41621 375.00 Safety, Security, Health Equipment, Supplies, and ServicesEeye Digital Security 41469 945.00 Computer Applications & ServicesEmployee Benefits Specialists, Inc.41622 13,056.99 Reimbursed Prepaid Employee Medical & Dependent Care Enchanter, Inc.41470 5,700.00 Vessel Services - Monitoring Vessel Nerissa Entech Instruments, Inc.41623 1,830.60 Laboratory Services & SuppliesEnvironmental Express, Inc.41624 1,801.33 Laboratory Services & SuppliesEnvironmental Sampling Supply 41625 283.46 Laboratory Services & Supplies Environmental Water Solutions, Inc.41471 2,395.28 Repair & Maintenance Services and/or Supplies EPC Electrical Power & Controls, Inc.41626 1,425.83 Instrument Parts & SuppliesErika Diaz 41753 462.96 Meeting/Training Expense ReimbursementFarhawk Marketing Services 41627 1,342.00 Repair & Maintenance Services and/or Supplies Fedex Corporation 41472 85.75 Freight Services Fedex Corporation 41628 106.24 Freight ServicesFisher Scientific 41629 8,300.24 Laboratory Services & SuppliesFitch, Inc.41473 3,000.00 Professional Services - Financial fin/210/mm Page 3 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 Flo Systems, Inc.41630 2,897.40 Repair & Maintenance Services and/or Supplies FLW, Inc.41631 736.82 Electrical/Electronic Equipment, Parts & RepairsFranchise Tax Board 41632 50.00 Judgments Payable Frys Electronics 41474 118.51 Computers, Software/Hardware GA Industries, L.L.C. c/o CS-AMSCO 41633 1,609.69 Repair & Maintenance Services and/or Supplies Ganahl Lumber Company 41475 28.89 Facilities, Maintenance, Services & SuppliesGardner-Denver, Inc.41634 325.84 Repair & Maintenance Services and/or Supplies Garratt Callahan Company 41635 5,081.07 Chemicals, Water/Wastewater Treatment Glens Alignment & Brake Service 41476 528.97 Autos, Trucks & Marine Equipment, Parts, Accessories & Services Golden State Overnight Delivery Service 41477 102.61 Courier ServicesGolden State Paving Co., Inc.41478 2,800.00 Repair & Maintenance Services and/or SuppliesGolden West Window Service 41479 380.00 Facilities, Maintenance, Services & Supplies Government Finance Officers Association 41480 55.00 Professional Organizations Meeting/Training/Membership Grainger, Inc.41481 844.25 Repair & Maintenance Services and/or SuppliesGraybar Electric Company 41637 4,248.69 Electrical/Electronic Equipment, Parts & RepairsGreat Western Sanitary Supplies 41638 184.03 Janitor & Household Service & Supplies GT Hall Company 41636 1,479.62 Mechanical Parts & Supplies Hach Company 41483 821.18 Laboratory Services & SuppliesHampton Tedder Technical Services 41484 3,685.00 Professional Services/Electrical Acceptance Testing - VariousHarrington Industrial Plastics, Inc.41639 152.64 Repair & Maintenance Services and/or Supplies Harvard Business Review 41485 119.00 Subscription HD Supply 41486 835.07 Mechanical Parts & SuppliesHewlett Packard Company 41640 6,980.34 Computers, Software/HardwareHill Brothers 465 95,960.06 Chemicals, Water/Wastewater Treatment Home Depot 41487 1,790.05 Miscellaneous Parts and Supplies Home Depot 41641 283.89 Miscellaneous Parts and Supplies Hub Auto Supply 41488 495.79 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesIndiana Child Support Bureau 41643 290.00 Judgments Payable Industrial Electric Machinery LLC 41644 676.38 Repair & Maintenance Services and/or Supplies Industrial Threaded Products, Inc.41490 5,605.85 Repair & Maintenance Services and/or Supplies Industrial Threaded Products, Inc.41645 31.76 Repair & Maintenance Services and/or SuppliesIndustry Packing & Seal, Inc.41646 1,522.05 Repair & Maintenance Services and/or Supplies Inorganic Ventures, Inc.41647 895.76 Laboratory Services & Supplies Integrated Process Technologies, Inc.41648 4,005.90 Repair & Maintenance Services and/or Supplies Intl. Union of Oper. Eng. AFL CIO Local 501 41649 4,723.56 Dues DeductionsIntratek Computer, Inc.41491 1,301.31 Network/Server/Printer Maintenance ServicesInvensys Systems, Inc.41650 5,183.71 Electrical/Electronic Equipment, Parts & Repairs J. F. Shea Construction, Inc.41432 308,032.17 Construction J. F. Shea Construction, Inc.41435 261,820.23 ConstructionJays Catering 41492 1,252.60 Catering ServicesJCI Jones Chemicals, Inc.461 79,053.58 Chemicals, Water/Wastewater Treatment JCI Jones Chemicals, Inc.466 60,088.54 Chemicals, Water/Wastewater Treatment Johnson Matthey Inc 41651 1,231.63 Repair & Maintenance Services and/or SuppliesJohnstone Supply 41652 936.79 Repair & Maintenance Services and/or SuppliesKasai Consulting 41493 375.00 Professional Organizations Meeting/Training/Membership Kemira Water Solutions 462 150,367.40 Chemicals, Water/Wastewater Treatment Kemira Water Solutions 467 121,679.39 Chemicals, Water/Wastewater TreatmentKraft Industrial Supply Service Corp 41654 142.68 Repair & Maintenance Services and/or SuppliesL. Johnson Painting 41494 325.00 Facilities, Maintenance, Services & Supplies fin/210/mm Page 4 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 Lawson Products, Inc.41495 535.01 Repair & Maintenance Services and/or Supplies Lowe's HIW, Inc.41656 1,634.44 Repair & Maintenance Services and/or SuppliesLynde-Ordway Company, Inc.41496 895.00 Computer Applications & Services Lytle Screen Printing 41497 401.83 Miscellaneous Services Malcolm Pirnie, Inc.41498 5,647.19 Professional Services/Engineering Design Services Mandic Motors 41499 110.00 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesMarine Technology Network Association 41657 75.00 Professional Organizations Meeting/Training/Membership Mark A. Esquer 41746 122.45 Meeting/Training Expense Reimbursement Marvac Electronics 41658 82.75 Electrical/Electronic Equipment, Parts & Repairs McGladrey & Pullen LLP 41659 18,000.00 Professional Services - Financial AuditingMcJunkin Red Man Corporation 41500 12,920.31 Repair & Maintenance Services and/or SuppliesMcMaster-Carr Supply Co.41501 1,170.21 Repair & Maintenance Services and/or Supplies McMaster-Carr Supply Co.41660 533.88 Repair & Maintenance Services and/or Supplies MCR Technologies, Inc.41502 371.00 Repair & Maintenance Services and/or SuppliesMCR Technologies, Inc.41661 2,414.30 Repair & Maintenance Services and/or SuppliesMichael I. Zedek 41752 190.41 Meeting/Training Expense Reimbursement Michael Puccio 41749 485.18 Meeting/Training Expense Reimbursement Miele, Inc.41503 579.07 Laboratory Services & SuppliesMiele, Inc.41662 997.78 Laboratory Services & SuppliesMine Safety Appliance 41504 6,251.27 Electrical/Electronic Equipment, Parts & Repairs Mine Safety Appliance 41663 1,003.39 Electrical/Electronic Equipment, Parts & Repairs Mission Abrasive & Janitorial Supplies 41505 85.43 Janitorial & Household Services & SuppliesMotion Industries, Inc.41665 46.66 Electrical/Electronic Equipment, Parts & RepairsMTM Recognition Corporation 41666 307.25 Service Awards National Seminars Group 41667 298.00 Training Registration Neal Supply Co.41506 4,031.67 Repair & Maintenance Services and/or Supplies Neutron Products, Inc.41507 6,043.46 Chemicals, Water/Wastewater TreatmentNeutron Products, Inc.41668 9,011.03 Chemicals, Water/Wastewater Treatment Newark Electronics 41508 1,076.60 Electrical/Electronic Equipment, Parts & Repairs Nextteq, L.L.C.41509 588.30 Pumps NIGP: Nat'l. Inst. Of Govrnmntl. Purchasing 41510 505.00 Professional Organizations Meeting/Training/MembershipNinyo & Moore 41511 4,749.00 Professional Services/Geotech & Material Testing Norcal Controls Incorporated 41512 1,627.03 Repair & Maintenance Services and/or Supplies OCB Reprographics 41590 875.00 Printing/Reprographics Services OCEA 41670 711.75 Dues DeductibleOffice Depot 41513 9,493.88 Office SuppliesOfficemax Incorporated 41671 780.47 Furniture/Fixtures Olin Corporation 41514 4,155.14 Chemicals, Water/Wastewater Treatment Olin Corporation 41672 3,952.10 Chemicals, Water/Wastewater TreatmentOneSource Distributors, Inc.41515 427.00 Electrical/Electronic Equipment, Parts & RepairsOneSource Distributors, Inc.41673 562.49 Electrical/Electronic Equipment, Parts & Repairs Orange County Auto Parts 41516 311.74 Truck Supplies Orange County Auto Parts 41674 40.77 Truck SuppliesOrange County Business Council 41669 1,000.00 Professional OrganizationOrange County Council of Governments 41675 5,000.00 Professional Organizations Meeting/Training/Membership Orange County Sheriff 41676 596.85 Judgments Payable Orange County Tax Collector 41517 62.93 Governmental Agency Fees & ChargesOrange County United Way 41677 40.00 Employee ContributionsOsts, INC.41518 810.00 Professional Organizations Meeting/Training/Membership fin/210/mm Page 5 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 Oxygen Service Company 41519 604.75 Laboratory Services & Supplies Oxygen Service Company 41678 573.72 Laboratory Services & SuppliesPace Precision Products, Inc.41520 3,952.07 Repair & Maintenance Services and/or Supplies Pace Precision Products, Inc.41679 5,929.57 Repair & Maintenance Services and/or Supplies Pacific Mechanical Supply 41521 4,867.00 Repair & Maintenance Services and/or Supplies Pacific Mechanical Supply 41680 309.73 Repair & Maintenance Services and/or SuppliesParker Supply Company 41522 543.06 Miscellaneous Parts and Supplies Parker Supply Company 41681 1,146.00 Miscellaneous Parts and Supplies PBS & J 41593 15,204.26 Professional Services/Engineering Design Services Peace Officers Council of CA 41682 2,265.50 Dues Deductions, Supervisors & ProfessionalsPerformance Pipeline Technologies 41523 24,076.28 Professional Services/CCTV Inspection/Sewerline CleaningPerformance Pipeline Technologies 41683 4,250.00 Professional Services/CCTV Inspection/Sewerline Cleaning PL Hawn Company, Inc.41524 340.45 Repair & Maintenance Services and/or Supplies PL Hawn Company, Inc.41684 106.28 Repair & Maintenance Services and/or SuppliesPlanetbids, Inc.41426 31,670.00 Computer Applications & ServicesPolydyne, Inc.463 15,540.23 Chemicals, Water/Wastewater Treatment Polydyne, Inc.468 49,236.26 Chemicals, Water/Wastewater Treatment Powercom 41685 4,967.64 Safety, Security, Health Equipment, Supplies, and ServicesPraxair Distribution, Inc.41686 93.75 Laboratory Services & SuppliesPrimary Source Office Furnishings, Inc.41687 4,658.85 Minor Equipment/Furniture & Fixtures Primrose Ice Co., Inc.41525 210.00 Water & Ice Services Primrose Ice Co., Inc.41688 105.00 Water & Ice ServicesProcess Equipment Company 41689 2,215.75 Repair & Maintenance Services and/or SuppliesPrudential Overall Supply 41526 4,233.04 Uniforms Prudential Overall Supply 41690 1,348.96 Uniforms Public Resources Advisory Group 41527 6,150.00 Professional Services/Engineering Design Services Rachel J. Van Exel 41751 341.32 Meeting/Training Expense ReimbursementRainin Instrument, L.L.C.41693 113.25 Laboratory Services & Supplies Rebecca Callahan, A.P.L.C.41528 1,200.00 Professional Services Legal - Employee Relations Rentacrate, L.L.C.41529 232.63 Facilities, Maintenance, Services & Supplies Restek Corp.41530 139.34 Laboratory Services & SuppliesRestek Corp.41694 1,878.15 Laboratory Services & Supplies Retrofit Parts & Components, Inc.41531 846.44 Repair & Maintenance Services and/or Supplies Rexel Electrical & Datacom Supplies 41695 3,578.39 Electrical/Electronic Equipment, Parts & Repairs RM Automation c/o RM Controls 41696 80.32 Paper & Office SuppliesRoto Rooter NOC#11 41532 475.00 Repair & Maintenance Services and/or SuppliesRotork Controls, Inc.41697 114.75 Electrical/Electronic Equipment, Parts & Repairs Royale Cleaners 41533 157.60 Miscellaneous Services Royale Cleaners 41698 85.70 Miscellaneous ServicesRS Hughes Co., Inc.41534 57.83 Repair & Maintenance Services and/or SuppliesRyan Herco Products Corp.41699 1,588.38 Repair & Maintenance Services and/or Supplies S. W. Investigations 41700 6,017.00 Professional Services Legal - Employee Relations Sager Electronics 41535 4,771.23 Tools & SuppliesSan Diego/Orange Fluid System Technologies, Inc.41701 400.38 Repair & Maintenance Services and/or SuppliesSARBS-CWEA 41536 35.00 Professional Organizations Meeting/Training/Membership SARBS-CWEA 41754 660.00 Professional Organizations Meeting/Training/Membership Sartorius 41537 5,113.75 Repair & Maintenance Services and/or SuppliesSCAQMD 41538 2,123.92 Governmental Agency Fees & ChargesSCESA41540625.00 Professional Organizations Meeting/Training/Membership fin/210/mm Page 6 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 Schwing Bioset 464 58.51 Repair & Maintenance Services and/or Supplies Scientific Instrument Services, Inc.41702 991.15 Laboratory Services & SuppliesSCPLRC (Southern California Public Rels. Council)41703 200.00 Professional Organizations Meeting/Training/Membership Securance LLC 41704 21,208.00 Professional Services/Information Technology Shamrock Supply Co., Inc.41542 7,583.23 Repair & Maintenance Services and/or Supplies Shamrock Supply Co., Inc.41705 820.43 Repair & Maintenance Services and/or SuppliesShepard Brothers, Inc.41706 6,727.57 Chemicals, Water/Wastewater Treatment Shureluck Sales & Engineering 41543 924.20 Repair & Maintenance Services and/or Supplies Siemens Energy, Inc.41544 4,998.52 Repair & Maintenance Services and/or Supplies Sigma-Aldrich, Inc.41545 53.23 Laboratory Services & SuppliesSkalar, Inc.41707 1,134.06 Laboratory Services & SuppliesSkillPath Seminars 41546 199.00 Professional Organization & Meeting/Training Registration So. Cal Gas Company 41708 16,350.37 Utilities South Coast Environmental Co.41539 12,374.49 Professional Services - Air Quality MonitoringSouthern California Edison 41427 95,093.41 UtilitiesSouthern California Edison 41709 2,380.39 Utilities Southern Counties Lubricants 41547 3,032.32 Fuel and Lubricants Sparklett-Dallas 41548 676.80 Miscellaneous ServicesSparklett-Dallas 41710 676.80 Miscellaneous ServicesSparling Instruments, Inc.41549 3,790.21 Instrument Parts & Supplies Stanley Steamer International, Inc.41711 453.00 Janitor & Household Service & Supplies Staples 41712 999.26 Office SuppliesState Board of Equalization 41550 197.00 Governmental Agency Fees & ChargesSteele, Krista L.41750 1,019.76 Meeting/Training Expense Reimbursement Stewart Handling Systems Inc.41713 7,438.50 Utilities Stratus Environmental, Inc.41551 6,750.00 Professional Services/Groundwater Removal Sumitomo Electric Lightwave Corp.41552 3,200.00 Professional Organizations Meeting/Training/MembershipSummit Steel 41553 1,573.04 Repair & Maintenance Services and/or Supplies Sunset Industrial Parts 41714 848.98 Repair & Maintenance Services and/or Supplies Suzanne's Catering 41715 1,166.75 Miscellaneous Expenses Synagro West, Inc.41554 221.77 Biosolids ManagementT & D Communications 41555 3,457.76 Computers, Software/Hardware T. Paine, L.L.C. (SPDP)41716 1,500.00 Permit Refund Taormina Industries, Inc.41691 510.00 Reconciliation User Fee Refund Program TCH Associates, Inc.41717 5,417.94 Laboratory Services & SuppliesTekSystems417181,458.00 Professional Services/Temporary ServicesTeledyne Instruments/Impulse, Inc.41719 61.00 Laboratory Services & Supplies Terra Renewal, L.L.C.41428 49,839.78 Grit & Screenings Disposal TestAmerica Ontario 41556 1,617.00 Laboratory Services & SuppliesTetra Tech, Inc.41582 64,112.55 Professional Services/Engineering Design ServicesSThe Cei Group, Inc.41720 5,259.66 Repair & Maintenance Services and/or Supplies The Trane Company 41722 311.09 Repair & Maintenance Services and/or Supplies The Wackenhut Corporation 41482 11,253.86 Safety, Security, Health Equipment, Supplies, and ServicesThe Walking Man, Inc.41557 375.00 Miscellaneous ServicesThompson Industrial Supply, Inc.41721 4,389.20 Repair & Maintenance Services and/or Supplies Tom B. Meregillano 41748 357.40 Meeting/Training Expense Reimbursement Tony's Lock & Safe Service & Sales 41558 42.02 Repair & Maintenance Services and/or SuppliesTortuga Pool Service 41559 930.00 Repair & Maintenance Services and/or SuppliesTri-State Seminar On-the-River 41723 380.00 Professional Organizations Meeting/Training/Membership fin/210/mm Page 7 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 Tropical Plaza Nursery, Inc.41429 32,087.50 Landscape Maintenance Services Truck & Auto Supply, Inc.41560 319.85 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesTule Ranch/Magan Farms 41430 169,430.51 Biosolids Management UCI Regents 41561 1,250.00 Professional Services Union Bank of California 41574 3,881.40 Construction, Retention Union Bank of California 41577 13,780.01 Construction, RetentionUnited Parcel Service 41562 41.99 Freight Services United Parcel Service 41724 60.28 Freight Services Universal Flooring Systems, Inc.41563 363.00 Facilities, Maintenance, Services & Supplies US Equipment Co., Inc.41564 1,376.17 Repair & Maintenance Services and/or SuppliesUS Peroxide, L.L.C.41431 104,437.78 Chemicals, Water/Wastewater TreatmentUS Peroxide, L.L.C.41583 55,312.66 Chemicals, Water/Wastewater Treatment USA Bluebook 41565 21,923.94 Repair & Maintenance Services and/or Supplies Valley Power Systems, Inc.41566 3,277.24 Repair & Maintenance Services and/or SuppliesVapex Products, Inc.41567 7,184.17 Electrical/Electronic Equipment, Parts & RepairsVerizon California 41568 42.19 Telecommunications Verizon California 41726 688.90 Telecommunications Verizon California 41725 1,704.16 TelecommunicationsVerne's Plumbing 41569 8,560.58 Plumbing Services & SuppliesVerne's Plumbing 41575 23,907.37 Plumbing Services & Supplies Verne's Plumbing 41727 3,141.00 Plumbing Services & Supplies Vladimir A. Kogan 41747 595.07 Meeting/Training Expense ReimbursementVortex Corp.41728 424.95 Repair & Maintenance Services and/or SuppliesVoyager Fleet Systems, Inc.41729 24,429.74 Autos, Trucks & Marine Equipment, Parts, Accessories & Services VWR Scientific Products 41570 2,314.58 Laboratory Services & Supplies VWR Scientific Products 41730 2,790.15 Laboratory Services & Supplies Waco Filter 41731 2,307.75 Repair & Maintenance Services and/or SuppliesWater Environment Federation 41732 895.00 Professional Organizations Meeting/Training/Membership Waters Corporation 41571 135.12 Laboratory Services & Supplies Waters Corporation 41733 1,246.58 Laboratory Services & Supplies Waxie Sanitary Supply 41572 504.27 Janitor & Household Service & SuppliesWells Fargo Bank Esc 80556300 Kiewit 41434 112,119.82 Construction, Retention Wells Fargo Bank Escrow 23518600 41437 39,756.92 Construction, Retention Wells Fargo Bank Escrow 23861100 Kiewit 41578 6,030.00 Construction, Retention Wells Supply Co.41734 966.52 Repair & Maintenance Services and/or SuppliesWest Coast Switchgear, Inc.41735 3,232.50 Electrical/Electronic Equipment, Parts & RepairsWest Lite Supply Company, Inc.41573 233.78 Electrical/Electronic Equipment, Parts & Repairs West Lite Supply Company, Inc.41736 275.43 Electrical/Electronic Equipment, Parts & Repairs Western Blue/Insight/Hewlett Packard 41737 7,018.86 Computers, Software/HardwareWestern States Controls 41738 2,655.06 Electrical/Electronic Equipment, Parts & RepairsWoodruff Spradlin & Smart 41739 548.90 Professional Services - Legal Xpedex Paper & Graphics (formerly Kirk)41740 40.16 Office Supplies Yale/Chase Materials Handling, Inc.41741 202.36 Electrical/Electronic Equipment, & Electric Cart Parts & RepairsTotal Accounts Payable - Warrants $ 2,991,797.68 Payroll Disbursements Employee Paychecks 47437 - 47461 4,155.50$ Interim Payroll - ARBA (08/01/11)* Employee Paychecks 47463 - 47518 97,245.17 Biweekly Payroll (08/10/11) Employee Paychecks 47519 - 47520 212.39 Interim Payroll - Retro (08/11/11) fin/210/mm Page 8 of 8 EXHIBIT A 8/22/2011 Vendor Warrant No.Amount Description Claims Paid From 08/01/11 to 08/15/11 Employee Paychecks 47521 - 47522 7,863.81 Interim Payroll - Retirements (08/11/11) Employee Paychecks 47523 - 47524 71,185.59 Interim Payroll - Retirement Payouts (08/11/11)Employee Paychecks 47525 - 47526 136,800.00 Interim Payroll - Retirements (08/11/11)Employee Paychecks 47527 1,624.32 Interim Payroll - Retirements (08/15/11)Employee Paychecks 47528 4,865.61 Interim Payroll - Retirement Payouts (08/15/11)Direct Deposit Statements 207709 - 207842 33,508.17 Interim Payroll - ARBA (08/01/11) Direct Deposit Statements 207843 - 208413 1,396,786.65 Biweekly Payroll (08/10/11) Total Payroll Disbursements $ 1,754,247.21 *Check number 47462 printed out of order,reissued voided pymt in prior period Wire Transfer Payments OCSD Payroll Taxes & Contributions 896,679.15$ Biweekly Payroll (08/10/11) Intercare Insurance Services 60,716.71 Workers' Compensation Services (08/02/11) Kiewit Infrastructure West Co.2,125,276.58 Construction Progress Payment Re 3-58 (08/04/11) Kiewit/Mass, A Joint Venture 357,812.28 Construction Progress Payment Re 5-49 (08/04/11) Kiewit/Mass, A Joint Venture 54,270.00 Construction Progress Payment Re 5/50 (08/04/11) Total Wire Transfer Payments $ 3,494,754.72 Total Claims Paid 08/01/11 - 08/15/11 8,240,799.61$ fin/210/mm Page 1 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Accounts Payable WarrantsA W Chesterton 41918 3,326.46 Repair & Maintenance Services and/or SuppliesABG Acquisition Corporation 41919 1,389.98 Repair & Maintenance Services and/or SuppliesAbsolute Standards, Inc.42062 85.00 Laboratory Services & SuppliesAccurate Air Engineering Inc 41770 300.98 Repair & Maintenance Services and/or SuppliesAccuStandard41771264.07 Laboratory Services & SuppliesAdvanced Infrastructure Technologies 41772 435.53 Mechanical Parts & SuppliesAECOM Technical Services, Inc.41906 31,191.71 Professional Services/Engineering Design ServicesAECOM Technical Services, Inc.42063 17,688.21 Professional Services/Engineering Design ServicesAerotek419201,561.68 Professional Services/Temporary ServicesAerotek420642,616.00 Professional Services/Temporary ServicesAgilent Technologies, Inc.41773 1,734.78 Laboratory Services & SuppliesAir Liquide America Specialty Gases LLC 41774 122.85 Laboratory Services & SuppliesAirgas Safety, Inc.41775 3,186.27 Safety, Security, Health Equipment, Supplies, and ServicesAirgas Safety, Inc.41921 6,721.11 Safety, Security, Health Equipment, Supplies, and ServicesAirgas Safety, Inc.42065 3,074.95 Safety, Security, Health Equipment, Supplies, and ServicesAirgas West 41776 1,889.98 Repair & Maintenance Services and/or SuppliesAirgas West 41922 268.41 Repair & Maintenance Services and/or SuppliesAirgas West 42066 17.02 Repair & Maintenance Services and/or SuppliesAlhambra Foundry Co., Ltd.42067 18,619.20 Repair & Maintenance Services and/or SuppliesAmazing Tents & Events 41777 71.10 GWRS/OCSD Joint Event - Canopy American Chemical Society 41778 161.00 Professional Organizations Meeting/Training/MembershipAmerican Express 41755 32,726.25 Purchasing Card Program for Miscellaneous Parts and SuppliesAmerican Express TVL Related Svcs Co., Inc.41779 2,384.03 Purchasing Card Program for Miscellaneous Travel ExpensesAmerican Water Works Assoc./Water Quality 42068 970.00 Professional Organizations Meeting/Training/Professional Organizations Meeting/Training/Amtech Elevator Services 41780 1,035.00 Miscellaneous ServicesAnn H. Brandvoid 42195 538.06 Meeting/Training Expense ReimbursementApplied Industrial Technology 42069 6,450.00 Repair & Maintenance Services and/or SuppliesAquatic Biosystems, Inc.42070 401.50 Laboratory Services & SuppliesArchie Ivy, Inc.41782 4,863.00 Repair & Maintenance Services and/or SuppliesArizona Instruments, L.L.C.41923 1,624.89 Electrical/Electronic Equipment, Parts & RepairsArizona Instruments, L.L.C.42072 1,160.19 Electrical/Electronic Equipment, Parts & RepairsARS Enterprises, Inc.41924 1,136.19 Laboratory Services & SuppliesASSE American Society of Safety Engineers 42073 180.00 Professional Organizations Meeting/Training/MembershipAT & T 41917 222.88 TelecommunicationsAT & T Long Distance.41784 39.70 TelecommunicationsAT & T Mobility II, L.L.C.41925 198.97 TelecommunicationsAT & T Mobility II, L.L.C.42075 49.99 TelecommunicationsAT & T Mobility II, L.L.C.42076 8,119.63 TelecommunicationsAT & T Universal Biller 41783 118.12 TelecommunicationsAT & T Universal Biller 42074 3,361.89 TelecommunicationsAtkinson, Andelson, Loya, Rudd & Ruud 41926 11,249.26 Professional Services - LegalAwards & Trophies Company 41785 47.42 Awards and Framing ServicesAwards & Trophies Company 42078 340.50 Awards and Framing ServicesAWSI41927134.00 Professional Services - DOT Program AdministrationBattery Specialties 42079 517.87 Batteries, VariousBattery Systems, Inc.42080 234.73 Repair & Maintenance Services and/or SuppliesBennett Bowen Lighthouse 42081 727.34 Electrical/Electronic Equipment, Parts & RepairsBioMerieux Vitek, Inc.41786 904.52 Laboratory Services & Supplies Claims Paid From 08/16/11 to 08/31/11 fin/210/mm Page 2 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Black & Veatch Corporation 41787 3,321.10 Professional Services/Engineering Design ServicesBlack & Veatch Corporation 41907 71,870.60 Professional Services/Engineering Design ServicesBlack Box Corporation 42082 480.08 Computers, Software/HardwareBlue Cross of California 41908 602,224.46 Employee BenefitsBondlogistix L.L.C.42083 2,250.00 Professional Financial ServicesBornemann Pumps, Inc.41756 27,245.73 Pump SuppliesBornemann Pumps, Inc.42042 28,337.43 Pump SuppliesBP Energy Company 41909 27,428.06 Natural GasBrea Imperial, Inc. 42084 2,500.00 Miscellaneous ServicesBrown & Caldwell 41910 216,494.43 Professional Services/Engineering Design ServicesBuchalter Nemer 41928 1,280.00 Professional Legal ServicesBurlington Safety Laboratory of CA, Inc.41788 1,065.95 Safety, Security, Health Equipment, Supplies, and ServicesButier Engineering, Inc.42085 7,424.96 Professional Services/Engineering Design ServicesC.A. Short Company 41929 32.13 Safety, Security, Health Equipment, Supplies, and ServicesC.S.M.F.O 42099 150.00 Professional Organizations Meeting/Training/MembershipCalifornia Dept. of Child Support 41930 2,021.51 Judgments PayableCalifornia Municipal Statistics, Inc.41790 500.00 Governmental Agency Fees & ChargesCalifornia Municipal Treasurers Assoc.41931 600.00 Professional Organizations Meeting/Training/MembershipCalifornia Recreation Company 41791 3,216.24 Boat Slip Rental - Nerissa Ocean Monitoring VesselCalifornia Recreation Company 42086 3,232.77 Boat Slip Rental - Nerissa Ocean Monitoring VesselCalifornia Relocation Services, Inc.41792 585.00 Miscellaneous Services - Moving/RelocationCalifornia Relocation Services, Inc.41932 742.50 Miscellaneous Services - Moving/RelocationCallan Associates, Inc.42087 4,108.50 Investment Advisory ServicesCamali Corp.41793 1,148.67 Repair & Maintenance Services and/or SuppliesCarol Wafer 41933 542.77 Judgments PayableCheryl Schiefelbein 42040 200.00 Meeting/Training Expense ReimbursementCity of Fountain Valley 41955 457.91 Water UseCity of Fountain Valley 42108 222.25 Water UseCity of Garden Grove 41794 297.86 Water UseCity of Garden Grove 41903 10.00 Water UseCity of Huntington Beach 41819 11.11 Water UseCity of Huntington Beach 41967 73.50 Water UseCity of Huntington Beach 42120 17,530.71 Water UseCity of Newport Beach 42136 640.47 Water UseCity of Tustin oob'd 7/1/11 41934 2,066.81 Permit Fees RefundClaudia J. Thair 42088 1,462.00 Professional Organizations Meeting/Training/MembershipClean Harbors Environmental Services 41795 24,658.87 Grit & Screenings; Hazard Waste DisposalClean Harbors Environmental Services 42089 1,448.89 Grit & Screenings; Hazard Waste DisposalCoastal Traffic Systems, Inc.41935 550.00 Safety, Security, Health Equipment, Supplies, and ServicesColumbia Analytical Services 41936 2,400.00 Laboratory Services & SuppliesCompliance Services, Inc.42090 13,200.00 Professional ServicesConnell Chevrolet\GEO 41796 607.48 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesConnell Chevrolet\GEO 42091 453.41 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesConsumers Pipe & Supply Co.42092 317.86 Repair & Maintenance Services and/or SuppliesControl Factors Seattle, Inc.41937 1,115.23 Repair & Maintenance Services and/or SuppliesCornerstone Ondemand, Inc. 41757 29,771.25 Professional Services/I.T. CORRPRO Companies, Inc.42043 51,636.00 Professional Services/Temporary ServicesCoss, Ronald J. 41789 386.52 Meeting/Training Expense ReimbursementCounterpart Enterprises, Inc.41938 3,357.42 Repair & Maintenance Services and/or Supplies fin/210/mm Page 3 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 County of Orange - Health Care Agency 41797 220.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 41939 7,528.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 42044 43,861.40 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 42093 3,140.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 42094 540.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 42095 660.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 42096 675.00 Governmental Agency Fees & ChargesCounty of Orange Auditor Controller 42097 600.00 Governmental Agency Fees & ChargesCourt Order 41977 2,179.38 Judgments PayableCourt Order 41980 150.00 Judgments PayableCourt Order 41982 225.00 Judgments PayableCourt Order 42002 108.00 Judgments PayableCourt Order 42033 912.50 Judgments PayableCR&R, Inc.41798 324.45 Waste DisposalCR&R, Inc.41940 1,278.90 Waste DisposalCrane Veyor Corp.41941 432.00 Repair & Maintenance Services and/or SuppliesCrane Veyor Corp.42098 5,243.43 Repair & Maintenance Services and/or SuppliesCryogenic Plastics Inc 41942 590.87 Miscellaneous Parts and SuppliesCS-AMSCO 41943 2,723.52 Repair & Maintenance Services and/or SuppliesCSI Services, Inc.41799 15,071.85 Professional ServicesCSU Dominguez Hills 42100 725.00 Professional Organizations Meeting/Training/MembershipCulligan of Orange County 41800 57.35 Repair & Maintenance Services and/or SuppliesCWEA Membership 41944 132.00 Professional Organizations Meeting/Training/MembershipCWEA Membership 42101 132.00 Professional Organizations Meeting/Training/MembershipDale O. Henderson 42199 568.56 Meeting/Training Expense ReimbursementDapper Tire Co.41801 675.84 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesDavid Wheeler Pest Control, Inc.41945 350.00 Pest Control ServicesDavid Wheeler Pest Control, Inc.42102 1,432.00 Pest Control ServicesDavid's Tree Service 42103 350.00 GroundskeepingDeirdre E. Bingman 42035 204.00 Meeting/Training Expense ReimbursementDetector Technology, Inc. 41802 602.00 Laboratory Services & SuppliesDoug Rulison 42202 672.76 Meeting/Training Expense ReimbursementEagle Aerial Imaging 41803 8,250.00 Computer Applications & ServicesEagle Protection of California 41946 275.00 Safety, Security, Health Equipment, Supplies, and ServicesEHS International, Inc.42104 2,250.00 Professional Organizations Meeting/Training/MembershipEllis, Mike 41804 2,508.00 Permit Fees RefundEmployee Benefits Specialists, Inc.41947 13,056.99 Reimbursed Prepaid Employee Medical & Dependent CareEnchanter, Inc.41805 2,660.00 Vessel Services - Monitoring Vessel NerissaEnertech Environmental 41758 203,702.23 Biosolids ManagementENS Resources, Inc.41806 7,500.00 Professional Services - Federal AdvocacyEntech Instruments, Inc.42105 229.78 Laboratory Services & SuppliesEnvironmental Resource Associates 41948 1,062.32 Laboratory Services & SuppliesEnvironmental Sampling Supply 41949 344.80 Laboratory Services & SuppliesEnvironmental Water Solutions, Inc.41950 3,959.81 Repair & Maintenance Services and/or SuppliesEwing Irrigation 42106 541.58 Irrigation Repair & Maintenance Services and/or SuppliesExecutive Portraits 42167 12.50 Photograph ServicesExpress Lens Lab 41807 2,517.70 Safety, Security, Health Equipment, Supplies, and ServicesFedex Corporation 42107 239.70 Freight ServicesFirst American Corelogic 41951 1,304.67 Software Maintenance Agreement fin/210/mm Page 4 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Fisher Scientific 41952 3,214.63 Laboratory Services & SuppliesFleetmatics USA, LLC 41953 151.84 Professional Services - Legal/Employee RelationsFOPCO INCORPORATED 41954 4,290.00 Repair & Maintenance Services and/or SuppliesFountain Valley AAA Auto Spa 41808 901.15 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesFountain Valley Paints, Inc.41956 679.90 Facilities, Maintenance, Services & SuppliesFranchise Tax Board 41957 50.00 Judgments PayableFranklin Covey 41809 110.16 Office SuppliesFrys Electronics 42109 10.75 Computers, Software/HardwareGanahl Lumber Company 41958 183.03 Facilities, Maintenance, Services & SuppliesGarratt Callahan Company 41959 947.13 Chemicals, Water/Wastewater TreatmentGeorge Yardley Co.41960 4,216.66 Repair & Maintenance Services and/or SuppliesGolden State Overnight Delivery Service 41810 30.53 Courier ServicesGolden State Overnight Delivery Service 42110 200.64 Courier ServicesGolden West Window Service 41811 2,517.00 Facilities, Maintenance, Services & SuppliesGolden West Window Service 41961 4,365.00 Facilities, Maintenance, Services & SuppliesGolden West Window Service 42111 4,350.00 Facilities, Maintenance, Services & SuppliesGrainger, Inc.41812 2,205.55 Repair & Maintenance Services and/or SuppliesGrainger, Inc.41962 763.08 Repair & Maintenance Services and/or SuppliesGrainger, Inc.42112 903.58 Repair & Maintenance Services and/or SuppliesGraybar Electric Company 41813 63.21 Electrical/Electronic Equipment, Parts & RepairsGraybar Electric Company 41963 1,680.50 Electrical/Electronic Equipment, Parts & RepairsGuarantee Records Management 41814 779.63 Professional Services - Document Storage & ShreddingHaaker Equipment Company 42113 135.99 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesHach c/o Ponton Industries 41964 80.01 Laboratory Services & SuppliesHach c/o Ponton Industries 42114 208.77 Laboratory Services & SuppliesHach Company 41815 4,055.62 Laboratory Services & SuppliesHach Company 41965 346.89 Laboratory Services & SuppliesHach Company 42115 34.12 Laboratory Services & SuppliesHarrington Industrial Plastics, Inc.41816 262.51 Repair & Maintenance Services and/or SuppliesHarrington Industrial Plastics, Inc.42116 5,063.03 Repair & Maintenance Services and/or SuppliesHewlett Packard Company 42117 24,568.90 Computers, Software/HardwareHill Brothers 472 47,459.03 Chemicals, Water/Wastewater TreatmentHill Brothers 476 51,098.06 Chemicals, Water/Wastewater TreatmentHome Depot 41817 121.80 Miscellaneous Parts and SuppliesHome Depot 41966 673.11 Miscellaneous Parts and SuppliesHome Depot 42118 438.19 Miscellaneous Parts and SuppliesHub Auto Supply 41818 231.27 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesHub Auto Supply 42119 492.68 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesHuls, Michael R 41900 130.00 Meeting/Training Expense ReimbursementHyatt Legal Plans 41820 1,824.00 Professional Services - LegalIndiana Child Support Bureau 41968 290.00 Judgments PayableIndustrial Distribution Group 41969 107.33 Repair & Maintenance Services and/or SuppliesIndustrial Electric Machinery LLC 41970 1,486.95 Repair & Maintenance Services and/or SuppliesIndustrial Electric Machinery LLC 42121 1,569.00 Repair & Maintenance Services and/or SuppliesIndustrial Metal Supply 41971 914.80 Repair & Maintenance Services and/or SuppliesIndustrial Threaded Products, Inc.41821 9,185.66 Repair & Maintenance Services and/or SuppliesIndustrial Threaded Products, Inc.41972 173.11 Repair & Maintenance Services and/or SuppliesInsight Public Sector, Inc.42045 33,863.10 Computers, Software/HardwareIntercare Holdings Insurance Svcs., Inc.41822 5,166.67 Workers' Compensation Service fin/210/mm Page 5 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Interstate Batteries of Cal Coast 41823 294.95 Repair & Maintenance Services and/or SuppliesIntl. Union of Oper. Eng. AFL CIO Local 501 41973 5,003.52 Dues DeductionsIntratek Computer, Inc.42122 1,213.00 Network/Server/Printer Maintenance ServicesInvensys Systems, Inc.41974 778.73 Electrical/Electronic Equipment, Parts & RepairsIrvine Ranch Water District 41824 9.97 Water UseIrvine Ranch Water District 42123 55.17 Water UseJ F Shea Construction, Inc.41916 43,377.00 ConstructionJ I Solutions, Inc.41825 91.31 Laboratory Services & SuppliesJ I Solutions, Inc.41975 334.21 Laboratory Services & SuppliesJ R Filanc Construction 41767 380,405.46 Construction James D. Ruth 42203 1,060.58 Meeting/Training Expense ReimbursementJames E. Colston 42196 838.42 Meeting/Training Expense ReimbursementJays Catering 41826 707.11 Catering ServicesJCI Jones Chemicals, Inc.469 88,904.52 Chemicals, Water/Wastewater TreatmentJCI Jones Chemicals, Inc.473 26,884.07 Chemicals, Water/Wastewater TreatmentJCI Jones Chemicals, Inc.477 58,334.30 Chemicals, Water/Wastewater TreatmentJensen Instrument Co.41976 3,069.36 Electrical/Electronic Equipment, Parts & RepairsKaiser Foundation Health Plan 42046 130,225.16 Employee BenefitsKanawha Insurance Company 41827 3,284.33 Voluntary Benefits - SSTD InsuranceKemira Water Solutions 470 54,283.72 Chemicals, Water/Wastewater TreatmentKemira Water Solutions 474 80,318.34 Chemicals, Water/Wastewater TreatmentKemira Water Solutions 478 128,039.44 Chemicals, Water/Wastewater TreatmentKiewit Infrastructure West Co.41768 698,187.30 ConstructionKiewit Infrastructure West Co.42056 728,682.45 ConstructionKiewit/Mass, A Joint Venture 42059 655,692.30 ConstructionKiewit/Mass, A Joint Venture 42061 82,372.50 ConstructionKoff & Associates, Inc.41978 1,300.00 Professional Services/Comp & Class StudyL. Johnson Painting 41828 8,485.00 Facilities, Maintenance, Services & SuppliesL. Johnson Painting 41979 3,985.00 Facilities, Maintenance, Services & SuppliesLance Soll and Lunghard 41759 29,595.57 Professional Services - AuditingLarry R. Crandall 42036 1,111.79 Meeting/Training Expense ReimbursementLee & Ro, Inc.41911 30,689.56 Professional Services/Engineering Design ServicesLiberty Mutual Claims 41829 3,858.57 InsuranceLisa K. Haney 41898 455.00 Meeting/Training Expense ReimbursementLopez Consulting Group, L.L.C.41830 12,250.00 Professional Services/I.T. Lorman Education Services 42124 116.31 Professional Organizations Meeting/Training/MembershipMalcolm Pirnie, Inc.41831 21,428.43 Professional Services/Engineering Design ServicesMalcolm Pirnie, Inc.41912 27,102.75 Professional Services/Engineering Design ServicesMalcolm Pirnie, Inc.42125 10,400.51 Professional Services/Engineering Design ServicesManley's Boiler, Inc.42126 382.52 Repair & Maintenance Services and SuppliesMass Electric Construction CO 41897 11,007.00 ConstructionMass Electric Construction CO 41902 5,850.00 ConstructionMcBain Instruments 41832 1,220.00 Repair & Maintenance Services - MicroscopeMcMaster-Carr Supply Co.41833 1,033.67 Repair & Maintenance Services and/or SuppliesMcMaster-Carr Supply Co.42127 2,455.62 Repair & Maintenance Services and/or SuppliesMCR Technologies, Inc.42128 128.15 Repair & Maintenance Services and/or SuppliesMesa Muffler 41834 427.12 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesMichael I. Gold 42198 1,102.19 Meeting/Training Expense ReimbursementMichael T. Haworth 41899 190.00 Meeting/Training Expense Reimbursement fin/210/mm Page 6 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Midway Mfg. & Machining Co.41835 10,070.25 Repair & Maintenance Services and/or SuppliesMine Safety Appliance 41836 3,773.90 Electrical/Electronic Equipment, Parts & RepairsMission Abrasive & Janitorial Supplies 42129 224.31 Janitorial & Household Services & SuppliesMonica A. Sanchez 42209 2,000.00 Meeting/Training Expense ReimbursementMorgan Company (WRM, Inc)41981 540.12 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesMotion Industries, Inc.41837 193.73 Electrical/Electronic Equipment, Parts & RepairsMTM Recognition Corporation 41983 328.62 Service AwardsMTM Recognition Corporation 42130 589.46 Service AwardsMunicipal Water District of O.C.41984 16,543.00 Governmental Agency Fees & ChargesMWH Americas, Inc.42131 6,250.00 Professional Services/Engineering Design ServicesNAGDCA418381,300.00 Professional Organizations Meeting/Training/MembershipNational Fire Protection Association 42132 150.00 Professional Organizations Meeting/Training/MembershipNational Safety Council 41985 895.00 Professional Organizations Meeting/Training/MembershipNeal Supply Co.42133 1,036.51 Repair & Maintenance Services and/or SuppliesNetworkFleet, Inc.41839 331.50 Software Maintenance AgreementNeutron Products, Inc.41840 14,936.28 Chemicals, Water/Wastewater TreatmentNeutron Products, Inc.42134 8,595.36 Chemicals, Water/Wastewater TreatmentNewark Electronics 42135 1,436.07 Electrical/Electronic Equipment, Parts & RepairsNickell Metal Spray 41841 1,275.00 Repair & Maintenance Services and/or SuppliesNickell Metal Spray 41986 3,506.00 Repair & Maintenance Services and/or SuppliesO C Tanner Recognition Company 41842 75.30 Service AwardsOCB Reprographics 41781 4,229.22 Printing/Reprographics ServicesOCB Reprographics 42071 2,269.16 Printing/Reprographics ServicesOCEA41987711.75 Dues DeductibleOffice Depot 41843 834.91 Office SuppliesOffice Depot 41988 626.53 Office SuppliesOffice Depot 42137 3,036.75 Office SuppliesOlin Corporation 41989 16,519.03 Chemicals, Water/Wastewater TreatmentOlin Corporation 42138 8,187.00 Chemicals, Water/Wastewater TreatmentOneSource Distributors, Inc.41844 3,306.76 Electrical/Electronic Equipment, Parts & RepairsOneSource Distributors, Inc.42139 8,814.26 Electrical/Electronic Equipment, Parts & RepairsOrange County Auto Parts 41845 69.27 Truck SuppliesOrange County Auto Parts 41990 384.31 Truck SuppliesOrange County Hose Company 42140 94.37 Miscellaneous Parts and SuppliesOrange County Sanitation District 41904 1,668.37 Petty Cash ExpenseOrange County Sheriff 41991 596.85 Judgments PayableOrange County United Way 41992 40.00 Employee ContributionsOrange County Vector Control District 41993 145.38 Pest ControlOxygen Service Company 41847 1,057.85 Laboratory Services & SuppliesOxygen Service Company 41994 109.69 Laboratory Services & SuppliesOxygen Service Company 42141 1,143.77 Laboratory Services & SuppliesPacific Mechanical Supply 41848 3,028.35 Repair & Maintenance Services and/or SuppliesPacific Mechanical Supply 42142 2,617.56 Repair & Maintenance Services and/or SuppliesPacific Parts and Controls, Inc.41995 3,893.52 Repair & Maintenance Services and/or SuppliesParker Supply Company 42143 958.53 Miscellaneous Parts and SuppliesPartsmaster421441,123.26 Repair & Maintenance Services and/or SuppliesPatriot Video Productions 41849 1,525.08 Miscellaneous ServicesPBS & J 42077 17,119.52 Professional Services/Engineering Design ServicesPCS Express, Inc.41996 156.22 Courier Services fin/210/mm Page 7 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Peace Officers Council of CA 41997 2,242.50 Dues Deductions, Supervisors & ProfessionalsPerformance Pipeline Technologies 41998 7,957.28 Professional Services/CCTV Inspection/Sewerline CleaningPerformance Pipeline Technologies 42145 4,250.00 Professional Services/CCTV Inspection/Sewerline CleaningPerkinelmer Labs 42146 400.96 Laboratory Services & SuppliesPolydyne, Inc.471 45,643.09 Chemicals, Water/Wastewater TreatmentPolydyne, Inc.479 59,631.59 Chemicals, Water/Wastewater TreatmentPonton Industries, Inc.42147 4,702.03 Laboratory Services & SuppliesPowercom421484,967.64 Safety, Security, Health Equipment, Supplies, and ServicesPowertrain Industries 41850 297.92 Repair & Maintenance Services and/or SuppliesPrecon Products 42149 888.94 Repair & Maintenance Services and/or SuppliesPreferred Benefit Insurance Administrators, Inc.41913 86,548.96 Employee BenefitsPrimrose Ice Co., Inc.41851 105.00 Water & Ice ServicesPrimrose Ice Co., Inc.41999 105.00 Water & Ice ServicesProcare Work Injury Center 41852 1,965.60 Medical ServicesProject Management Institute 42150 154.00 Professional Organizations Meeting/Training/MembershipProjects Partners 41760 31,414.00 Professional Services/Temporary Employment ServicesProjects Partners 42151 21,638.00 Professional Services/Temporary Employment ServicesPropipe Professional Pipe Services 475 14,210.53 Professional Services/CCTV Sewerline InspectionsProvidence Publications, L.L.C.42000 427.00 Safety, Security, Health Equipment, Supplies, and ServicesPrudential Insurance Company of America 41761 41,700.59 BenefitsPrudential Overall Supply 41853 1,304.33 UniformsPrudential Overall Supply 42152 1,380.83 UniformsPSOMAS421538,360.00 Computer Applications & ServicesPump Action 42154 2,006.79 Oil FiltersQ Air - Calif. Div. Pump Engineering 41854 4,337.90 Repair & Maintenance Services and SuppliesQuickstart Intelligence 42001 4,067.00 Professional Organizations Meeting/Training/MembershipRainbow Disposal Co.42003 3,493.81 Waste DisposalRed Wing Shoes 41855 170.00 Safety, Security, Health Equipment, Supplies, and ServicesRed Wing Shoes 42156 116.37 Safety, Security, Health Equipment, Supplies, and ServicesReliastar418563,932.79 Voluntary Employee Life & Cancer InsuranceRentacrate, L.L.C.42004 100.00 Facilities, Maintenance, Services & SuppliesRestek Corp.41857 2,177.56 Laboratory Services & SuppliesRetrofit Parts & Components, Inc.41858 1,712.06 Repair & Maintenance Services and/or SuppliesReynolds Buick Inc.42047 35,373.65 Vehicles- Carpool VanRF MacDonald Co.42155 1,790.00 Repair & Maintenance Services and/or SuppliesRichard S. Birdsell 42194 523.18 Meeting/Training Expense ReimbursementRMS Engineering & Design, Inc.42157 3,837.50 Professional Services/Engineering Design ServicesRobert D. Michaels 42038 382.17 Meeting/Training Expense ReimbursementRobert J. Thiede 42206 154.00 Meeting/Training Expense ReimbursementRobert P. Ghirelli 42197 1,064.51 Meeting/Training Expense ReimbursementRobyn A. Wilcox 42207 405.00 Meeting/Training Expense ReimbursementRosemount Analytical Inc. - Remit 41859 81.76 Electrical/Electronic Equipment, Parts & RepairsRoss Associates, A Psychological Corp 41860 1,250.00 Medical ServicesRoto Rooter NOC#11 42005 331.62 Repair & Maintenance Services and/or SuppliesRoyale Cleaners 41861 99.40 Miscellaneous ServicesRoyale Cleaners 42006 62.90 Miscellaneous ServicesRPM Electric Motors 42007 1,228.21 Repair & Maintenance Services and/or SuppliesRPM Electric Motors 42158 11,520.74 Repair & Maintenance Services and/or SuppliesRSA Soil Products 42159 2,270.63 Miscellaneous Parts and Supplies fin/210/mm Page 8 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Russell Sigler, Inc. dba Sigler Wholesale 42160 2,486.87 Electrical/Electronic Equipment, Parts & RepairsSachs Electric Company 42057 128,997.45 Professional Services/Central Generation AutomationSafety Max 42161 530.58 Safety, Security, Health Equipment, Supplies, and ServicesSafety-Kleen 41862 105.45 Repair & Maintenance Services and/or SuppliesSARBS41905330.00 Professional Organizations Meeting/Training/MembershipSARBS42041220.00 Professional Organizations Meeting/Training/MembershipSchwing Bioset 480 4,795.80 Repair & Maintenance Services and/or SuppliesScientific Services Plus, LLC 42163 58.49 Laboratory Services & SuppliesSeals Compressed Gases 42008 16.25 Miscellaneous Parts and SuppliesShamrock Supply Co., Inc.41863 1,380.78 Repair & Maintenance Services and/or SuppliesShamrock Supply Co., Inc.42009 1,164.35 Repair & Maintenance Services and/or SuppliesShureluck Sales & Engineering 41864 67.42 Repair & Maintenance Services and/or SuppliesShureluck Sales & Engineering 42164 1,570.78 Repair & Maintenance Services and/or SuppliesSiemens Technology 41866 884.38 Air Conditioner Automation SystemSiemens Water Technologies Corp.41865 67.51 Repair & Maintenance Services and/or SuppliesSiemens Water Technologies Corp.42010 1,336.15 Repair & Maintenance Services and/or SuppliesSonja Wassgren Morgan 42039 132.75 Meeting/Training Expense ReimbursementSouth Coast Air Quality Management District 41867 717.63 Governmental Agency Fees & ChargesSouth Coast Environmental Co.42162 2,756.34 Professional Services - Air Quality MonitoringSouthern California Edison 41762 617,770.26 UtilitiesSouthern California Edison 42048 106,061.98 UtilitiesSPX Flow Tech Lighntnin 41914 44,303.25 Repair & Maintenance Services and/or SuppliesSST Benefits Consutling & Insurance Services 42165 9,500.00 Professional ServicesStahl, Keith C. 42205 130.00 Meeting/Training Expense ReimbursementStantec Consulting Services, Inc.42166 1,718.00 Professional Services/SurveyingStaples418681,786.20 Office SuppliesStaples420112,684.74 Office SuppliesSummit Steel 41869 469.36 Repair & Maintenance Services and/or SuppliesSunset Industrial Parts 41870 13.24 Repair & Maintenance Services and/or SuppliesSunset Industrial Parts 42012 9,096.60 Repair & Maintenance Services and/or SuppliesSunset Industrial Parts 42168 126.37 Repair & Maintenance Services and/or SuppliesSynagro West, Inc.41763 501,056.16 Biosolids ManagementSynagro West, Inc.42049 625,575.86 Biosolids ManagementTekSystems420132,624.40 Professional Services/Temporary ServicesTekSystems421692,916.00 Professional Services/Temporary ServicesTerra Renewal, L.L.C.42050 45,557.27 Grit & Screenings DisposalTestAmerica Ontario 41871 6,342.00 Laboratory Services & SuppliesTetra Tech, Inc.41764 32,503.30 Professional Services/Engineering Design ServicesSTetra Tech, Inc.42170 19,365.85 Professional Services/Engineering Design ServicesSThe Bank of New York Mellon 41872 1,762.07 Quarterly Service Fee - Asset AdministrationThe Integration Works, L.L.C.41873 1,602.00 Repair & Maintenance Services and/or SuppliesThe Orange County Register 41846 3,000.00 Notices & AdsThe Standard Insurance Company 41874 2,702.08 Disability InsuranceThe Standard Insurance Company 42171 2,702.08 Disability InsuranceThe Trane Company 42175 5,090.00 Repair & Maintenance Services and/or SuppliesTheodore Robins Ford 42172 311.74 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesThermo Electron Corp.41875 12,390.00 Laboratory Services & SuppliesThompson Industrial Supply, Inc.41876 1,343.20 Repair & Maintenance Services and/or SuppliesThompson Industrial Supply, Inc.42014 3,713.31 Repair & Maintenance Services and/or Supplies fin/210/mm Page 9 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 Thompson Industrial Supply, Inc.42173 7,686.51 Repair & Maintenance Services and/or SuppliesTiano Construction 41877 2,900.00 Facilities, Maintenance, Services & SuppliesTime Warner Communications 42174 59.20 TelecommunicationsT-Mobile 42015 109.47 TelecommunicationsTony's Lock & Safe Service & Sales 42016 394.50 Repair & Maintenance Services and/or SuppliesTownsend Public Affairs 41878 7,500.00 Professional Services - State Legislative AdvocacyTraffic Control Service, Inc.42017 151.84 Safety, Security, Health Equipment, Supplies, and ServicesTran Consulting Engineers 42051 35,854.50 Professional Services/Engineering Design ServicesTranscat41879185.84 Repair & Maintenance Services and/or SuppliesTri-State Seminar On-the-River 41880 95.00 Professional Organizations Meeting/Training/MembershipTri-State Seminar On-the-River 42018 95.00 Professional Organizations Meeting/Training/MembershipTri-State Seminar On-the-River 42176 95.00 Professional Organizations Meeting/Training/MembershipTropical Plaza Nursery, Inc.42177 1,601.60 Landscape Maintenance ServicesTroy D. Edgar 42037 825.78 Meeting/Training Expense ReimbursementTruck & Auto Supply, Inc.42019 1,489.90 Autos, Trucks & Marine Equipment, Parts, Accessories & ServicesTSG Enterprises, Inc.42178 2,261.00 Professional Services/Construction Support ServicesTule Ranch/Magan Farms 41765 237,913.22 Biosolids ManagementTule Ranch/Magan Farms 42052 171,309.52 Biosolids ManagementTW Telecom Holdings, Inc.42020 3,216.68 TelecommunicationsUC Regents 42179 725.00 Professional Organizations Meeting/Training/MembershipUmesh N. Murthy 42200 150.00 Meeting/Training Expense ReimbursementUnderground Service Alert of So. Calif 42021 1,233.00 Professional Services - Dig Alert Notification ServiceUnion Bank of California 41881 944.42 Banking ServicesUnion Bank of California Escrow 42034 2,283.00 Construction, RetentionUnited Parcel Service 41882 15.85 Freight ServicesUnited Parcel Service 42022 280.81 Freight ServicesUnited Parcel Service 42180 52.02 Freight ServicesUnited Rentals, Inc.42181 508.37 Pallet Jack RentalUnivar USA 42023 1,241.55 Miscellaneous SuppliesUS Equipment Co., Inc.42182 1,136.04 Repair & Maintenance Services and/or SuppliesUS Peroxide, L.L.C.41766 146,718.48 Chemicals, Water/Wastewater TreatmentUS Peroxide, L.L.C.41915 90,490.51 Chemicals, Water/Wastewater TreatmentUS Peroxide, L.L.C.42053 214,191.05 Chemicals, Water/Wastewater TreatmentUSA Bluebook 41883 3,644.89 Repair & Maintenance Services and/or SuppliesUSA Mobility Wireless, Inc.41884 482.38 TelecommunicationsValin Corporation 42183 4,285.52 Repair & Maintenance Services and/or SuppliesValley Power Systems, Inc.42024 4,191.44 Repair & Maintenance Services and/or SuppliesVanh Phonsiri 42201 1,317.90 Meeting/Training Expense ReimbursementVerizon California 41885 99.99 TelecommunicationsVerizon California 42025 49.17 TelecommunicationsVerizon California 42184 631.08 TelecommunicationsVerizon Wireless 42185 1,098.06 TelecommunicationsVerne's Plumbing 41886 1,431.85 Plumbing Services & SuppliesVerne's Plumbing 42026 2,844.25 Plumbing Services & SuppliesVerne's Plumbing 42186 2,046.96 Plumbing Services & SuppliesVictor A. Salinas 42204 568.56 Meeting/Training Expense ReimbursementVillage Nurseries 42027 168.04 Repair & Maintenance Services and/or SuppliesVision Financial Corporation 41887 856.72 Employee Voluntary BenefitsVortex Corp.42028 1,428.00 Repair & Maintenance Services and/or Supplies fin/210/mm Page 10 of 10 EXHIBIT B 9/8/2011 Vendor Warrant No.Amount Description Claims Paid From 08/16/11 to 08/31/11 VWR Scientific Products 41888 683.92 Laboratory Services & SuppliesVWR Scientific Products 42029 1,433.27 Laboratory Services & SuppliesVWR Scientific Products 42187 703.06 Laboratory Services & SuppliesWater Environment Federation 41889 757.00 Professional Organizations Meeting/Training/MembershipWater Environment Federation 42030 179.00 Professional Organizations Meeting/Training/MembershipWater Environment Federation 42188 936.00 Professional Organizations Meeting/Training/MembershipWaters Corporation 41890 2,101.00 Laboratory Services & SuppliesWaxie Sanitary Supply 42189 1,289.04 Janitor & Household Service & SuppliesWells Fargo Bank 41769 36,746.70 Construction, RetentionWells Fargo Bank Esc 80556300 Kiewit 42058 38,088.55 Construction, RetentionWells Fargo Bank Escrow 23518600 42060 72,854.70 Construction, RetentionWells Fargo Bank Escrow 23861100 Kiewit 42208 9,152.50 Construction, RetentionWest Coast Switchgear, Inc.42031 2,155.00 Electrical/Electronic Equipment, Parts & RepairsWest Lite Supply Company, Inc.41891 168.91 Electrical/Electronic Equipment, Parts & RepairsWestern Blue/Insight/Hewlett Packard 41892 7,788.19 Computers, Software/HardwareWestern Blue/Insight/Hewlett Packard 42190 20,053.88 Computers, Software/HardwareWestport Apparatus dba Breaker Supply 42191 74.35 Electrical/Electronic Equipment, Parts & RepairsWilliam S. Malik 41901 148.59 Meeting/Training Expense ReimbursementWoodruff Spradlin & Smart 42054 59,442.90 Professional Services - LegalXerox Corporation 41893 106.98 Computers, Software/Hardware & Managed ServicesXpedx, An International Paper Company 42192 8,821.25 Miscellaneous SuppliesYale/Chase Materials Handling, Inc.41894 3,753.57 Electrical/Electronic Equipment, & Electric Cart Parts & RepairsYale/Chase Materials Handling, Inc.42032 851.95 Electrical/Electronic Equipment, & Electric Cart Parts & RepairsYale/Chase Materials Handling, Inc.42193 40.75 Electrical/Electronic Equipment, & Electric Cart Parts & Repairs1-800-Conference(R)41895 314.86 Telecommunications24 Hour Fire Protection, Inc.41896 3,404.25 Repair & Maintenance Services and/or Supplies4X Diagnostics, L.L.C.42055 26,627.73 Computers, Software/Hardware Total Accounts Payable - Warrants $ 9,299,014.79 Payroll Disbursements Employee Paychecks 47529 - 47570 90,261.26$ Biweekly Payroll (08/24/11)*Employee Paychecks 47572 - 47580 4,605.34 Interim Payroll - IDEA Payments (8/23/11)**Employee Paychecks 47583 - 47584 10,141.55 Interim Payroll - Retirement Payouts (08/25/11) Direct Deposit Statements 208414 - 208971 1,364,179.54 Biweekly Payroll (08/24/11) Total Payroll Disbursements $ 1,469,187.69 *No check issued-number 47571 needed for history only **Retirement checks 47581 & 47582 voidedWire Transfer Payments OCSD Payroll Taxes & Contributions 895,271.26$ Biweekly Payroll (08/24/11) Total Wire Transfer Payments $ 895,271.26 Total Claims Paid 08/16/11 - 08/31/11 11,663,473.74$ Page 1 of 2 OPERATIONS COMMITTEE Meeting Date 09/07/11 To Bd. of Dir. 09/28/11 AGENDA REPORT Item Number 3 Item Number 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager CIP Project Manager: Victoria Pilko SUBJECT: CENGEN COOLING WATER SYSTEM REPLACEMENT, JOB NO. J-109 GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to enter into negotiations with Malcolm Pirnie, The Water Division of ARCADIS, Inc., for construction support services for the Cengen Cooling Water System Replacement, Job No. J-109. SUMMARY The design for Job No. J-109 is completed and was issued for public bid in July 2011. Bids were opened on August 23, 2011. Malcolm Pirnie, The Water Division of ARCADIS, Inc. has satisfactorily furnished engineering services for the design and is in the best position to provide engineering support services during construction, commissioning, and closeout phases of this project. The Scope of Services during construction includes the review of submittals, responses to Requests for Information, review of change orders, and assistance with the startup and commissioning of the new equipment. A new Professional Consultant Services Agreement for these construction support services will be recommended to the Board of Directors for award at a future meeting. PRIOR COMMITTEE/BOARD ACTIONS March, 2010 - Approved Amendment No. 1 to the Professional Services Agreement (PSA) with Malcolm Pirnie for $5,563, increasing the contract total amount not to exceed $1,495,440. February, 2009 - Approved Professional Services Agreement with Malcolm Pirnie for an amount not to exceed $1,489,877. Page 2 of 2 ADDITIONAL INFORMATION This project includes many Plant Water (PW) and Cooling Water system improvements at both plants including additional PW and Cooling Water pumps, 1,600 feet of replacement piping in the plant tunnels, new PW and Cooling Water strainers along with the valves and instrumentation improvements to support these improved systems. Project also includes temporary bypass piping systems to support the rehabilitation of the existing facilities. CEQA Notice of Exemption was filed on August 24, 2007. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This recommendation complies with authority levels of the Sanitation District’s Delegation of Authority. This item has been budgeted (FY 2011-12, Page A-10), and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency N/A N/A N/A JH:DF:VP:el:gc Page 1 of 2 OPERATIONS COMMITTEE Meeting Date 09/07/11 To Bd. of Dir. 09/28/11 AGENDA REPORT Item Number 4 Item Number 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager CIP Project Manager: Dean Fisher SUBJECT: COAST TRUNK SEWER REHABILITATION, CONTRACT NO. 11-26R GENERAL MANAGER'S RECOMMENDATION Approve a budget increase of $30,000 for Coast Trunk Sewer Rehabilitation, Contract No. 11-26R, for a total budget amount of $9,151,000. SUMMARY This project rehabilitated the Coast Trunk Sewer in Huntington Beach between First Street and Brookhurst Street. Construction work is complete. The requested project budget increase was intended to be included in the Fiscal Year 2011-12 Budget Update, however it was inadvertently omitted. The additional project budget is needed for staff to complete the project closeout phase. This project was previously budgeted at $21 million and was significantly reduced over time as the scope was better defined and cost savings were realized through completion. PRIOR COMMITTEE/BOARD ACTIONS February 2010 – Approved a budget increase of $180,000 for Coast Trunk Sewer Rehabilitation, Contract No. 11-26R, for a total project budget of $9,121,000. ADDITIONAL INFORMATION N/A CEQA A Notice of Exemption was filed for this project on August 4, 2004. Page 2 of 2 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This recommendation complies with authority levels of the Sanitation District’s Delegation of Authority. This item has not been budgeted; the requested budget increase will be funded from offsets within the CIP Budget. Date of Approval Contract Amount Contingency N/A N/A N/A JH:DF:AA:aln:gc Page 1 ADMINISTRATION COMMITTEE Meeting Date 09/14/11 To Bd. of Dir. 09/28/11 AGENDA REPORT Item Number 2 Item Number 8 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 Real Property Lease Agreement, specification No. L-018, with Village Nurseries Wholesale, LLC, providing for a lease extension effective December 1, 2011 through November 30, 2016, with option to renew for two additional 5-year periods, at an annual rate of $7,150 plus the seasonally-adjusted change in the Consumer Price Index for all Urban Consumers. SUMMARY The Orange County Sanitation District (Sanitation District) entered into a 10-year lease agreement with Village Nurseries effective December 1, 1996 in connection with real property located across Garfield Street from Plant No. 1 that was effective through and including November 30, 2006. The terms of the lease provides for lease extensions in four, five-year, mutually negotiable increments, or up to 20 additional years. Amendment No. 1, approved in 2006, extended the lease for an additional 5 years through and including November 30, 2011. This proposed Amendment No. 2 would be for the second five-year lease extension with Village Nurseries that would run through and include November 30, 2016. This property is being held by the Sanitation District for potential expansion of Plant No. 1 should new governmental treatment regulations be adopted that would require the Sanitation District to build additional facilities. Commencing Year 16 through Year 20, the base rent is subject to upward adjustment on December 1, 2011, and every year thereafter, (Adjustment Date) based on the seasonally adjusted change in the Consumer Price Index for all Urban Consumers (CPI-U) in the Los Angeles-Riverside-Orange County area for the month of October preceding the Adjustment Date. PRIOR COMMITTEE/BOARD ACTIONS November 15, 2006 – Approved Amendment No. 1 to the commercial lease agreement with Village Nurseries extending the lease period for an additional 5 years. December 18, 1996 – Approved a 10-year lease agreement with Village Nurseries in connection with real property, including buildings and other improvements located thereon. Page 2 ADDITIONAL INFORMATION A Provision is contained within the original lease that would allow the Sanitation District to terminate the lease upon six months written notice should an event occur that would require the use of the premises. At the request of Village Nurseries, a provision that would allow them to terminate the lease upon six months written notice has been included within the proposed Amendment No. 2. This request was made by Village Nurseries due to the possibility that Southern California Edison may, at some point, terminate their lease on an adjacent property. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Date of Approval Contract Amount Contingency N/A N/A N/A JDR:LT:MW:AB/jmf 1 776620.1 AMENDMENT NO. 2 TO REAL PROPERTY LEASE BY AND BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND VILLAGE NURSERIES WHOLESALE, LLC. SPECIFICATION NO. L-018 This Amendment No. 2 to the Real Property Lease dated December 18, 1996, as amended pursuant to the Amendment to Real Property Lease dated November 15, 2006, shall become effective this 1st day of December, 2011, by and between the Orange County Sanitation District (Landlord), and Village Nurseries Wholesale, LLC (Tenant). OCSD and Tenant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as “Parties.” RECITALS WHEREAS, County Sanitation District No. 2, 3, 4, 6, 7, 11, 13, and 14 of Orange County, predecessor to Landlord, and Village Nurseries, LP, predecessor to Tenant, entered into a Real Property Lease Agreement effective December 1, 1996 (the Lease Agreement), for the lease of certain real property described in Section 15 of the Lease Agreement as "a strip of land, approximately four acres of land located west of the west bank of the Santa Ana River south of Garfield Avenue to south Yorktown Avenue in the City of Huntington Beach", hereinafter referred to as "Leasehold"; and WHEREAS, the Lease Agreement was effective through and including November 30, 2006; and WHEREAS, the Parties entered into an amendment of the Lease Agreement entitled "Amendment to Real Property Lease" effective December 1, 2006, which extended the Lease Agreement for an additional five (5) year period, through and including November 30, 2011, and amended other provisions of the Lease Agreement (Amendment No. 1); and WHEREAS, Landlord and Tenant desire to extend the Lease Agreement beyond November 30, 2011 for an additional five (5) years; and WHEREAS, Landlord and Tenant desire to amend Paragraph 2 entitled "LEASE PAYMENTS" to reflect a new payment schedule, and WHEREAS, except as modified and/or amended expressly herein, Landlord and Tenant intend that all terms and conditions of the Lease Agreement, as modified by Amendment No. 1, shall remain in full force and effect. NOW, THEREFORE, in consideration of the mutual covenants specified herein, the Parties agree as follows: 2 776620.1 1. The Lease Agreement entered into by and between the Parties shall be extended for an additional five (5) years and shall run through and including November 30, 2016. Section 1 of the Lease Agreement, as modified by Amendment No. 1, shall be deleted in its entirety and restated as follows: "1. TERM: That the term of said lease shall be for a period of twenty years beginning December 1, 1996, and ending November 30, 2011, and that the terms of this lease may be terminated upon 30-days written notice by Landlord in the event of a determination by Landlord of a need for the use of said Leasehold property. Additionally, the lease may be extended by written agreement of the Parties in four or five year increments." 2. Section 2 of the Lease Agreement, as modified by Amendment No. 1, shall be deleted in its entirety and restated as follows: “Commencing Year 16 through Year 20, the base rent of $7,150.00 is subject to upward adjustment on December 1, 2011, and every year thereafter, (Adjustment Date) based on the seasonally adjusted change in the Consumer Price Index for all Urban Consumers (CPI-U) in the Los Angeles-Riverside-Orange County area for the month of October preceding the Adjustment Date. Said sum shall be payable on the date the term commences, to wit, December 1, 2011, and on December 1st of each succeeding year during the term of this lease." 4. This Amendment No. 2 is supplemental to the Lease Agreement, as modified by Amendment No. 1, and is by reference made part of said Lease Agreement. All of the terms, conditions, and provisions, thereof, unless specifically modified herein, shall continue in full force and effect. In the event of any conflict or inconsistency between the provisions of this Amendment No. 2 and any provisions of the Lease Agreement, the provisions of this Amendment No. 2 shall in all respects govern and control. 5. The persons executing this Amendment No. 2 on behalf of the Parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said Party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of this Amendment No. 2, and (iv) the entering into this Amendment No. 2 does not violate any provisions of any other agreement to which said party is bound. 3 776620.1 IN WITNESS WHEREOF, this Amendment No. 2 has been executed in the name of Landlord by its officers, thereunto duly authorized, and executed by Tenant as of this _____ day of ______________, 2011. ORANGE COUNTY SANITATION DISTRICT By_________________________________ Larry R. Crandall Chair, Board of Directors By_________________________________ Maria E. Ayala Clerk of the Board APPROVED AS TO FORM: _________________________________ Bradley R. Hogin General Counsel VILLAGE NURSERIES WHOLESALE, LLC By _________________________________ David R. House, President & CEO By _________________________________ Wayne Johnson, CFO and Secretary Page 1 ADMINISTRATION COMMITTEE Meeting Date 09/14/11 To Bd. of Dir. 09/28/11 AGENDA REPORT Item Number 3 Item Number 9 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to issue Revenue Refunding Certificate Anticipation Notes, Series 2011B, as one-year fixed-rate obligations, in an amount not to exceed $155.0 million to replace the $154.665 million Revenue Refunding Certificate Anticipation Notes, Series 2010B maturing on November 23, 2011. SUMMARY In March 2006, the Sanitation District issued $200 million of variable rate Certificates of Participation (COP), Series 2006 (2006 COPs). Alternatively, the Sanitation District could have issued debt at an estimated 4.54% on a fixed rate basis in 2006. From inception through August 2008, the average variable rate on the 2006 COPs was 2.95% or 0.22% less than the SIFMA index (weekly market index of tax-exempt variable rate obligations). As the global financial crisis took hold in the late summer of 2008, there was a significant increase in the variable rate borrowing cost of the Sanitation District, including all municipal borrowers, as the 2006 COPs averaged 4.29% (or 1.56% above the SIFMA index) for the period between September 2008 and December 2008. A good deal of the increase in variable rate cost can be attributed to the weakened financial strength of the bank, DEPFA Bank plc, providing liquidity support on the 2006 COPs. In December 2008, the Sanitation District proactively refunded the 2006 COPs with the Refunding COP Series 2008C Certificate Anticipation Notes (2008C CANs) to reduce its exposure to the then higher and more volatile variable rate costs. The yield on the 2008C CANs was 0.98% for a one-year period. The issuance of the 2008C CANs allowed the Sanitation District to redeem the 2006 COPs at an all-in cost of less than 1.25% and avoid paying a bank rate of 4.75% which would have been effective starting in January 2009. Since the 2008C CANs issuance, the Sanitation District completed two additional one-year refinancings as summarized below: Series Principal Amount Yield All-In Cost 2009B $ 165,865,000 0.37% 0.559% 2010B 154,665,000 0.36% 0.525% The interest rate on the Revenue Refunding Certificate Anticipation Notes Series 2010B (2010B CANs) was fixed for only one year and the entire $154.665 million plus interest becomes due and payable on November 23, 2011. The Sanitation District is responsible for the total repayment of $157.76 million (includes interest) or the District could choose to refinance the 2010B CANs. Staff Page 2 does not recommend the use of $157.76 million of cash to repay the 2010B CANs; therefore, there are a number of refinancing options available to the District. PRIOR COMMITTEE/BOARD ACTIONS October 2010: Board adopted Resolution No. OCSD 10-18, 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 2010B, such Notes Evidencing Principal in an Aggregate Amount of Not to Exceed $167,000,000, Approving A Notice of Intention to Sell, Authorization the Distribution of a Notice Inviting Bids and an Official Statement in Connection with the Offering and Sale of such Notes and Authorizing the Execution of Other Necessary Documents and Related Actions. October 2009: Board adopted 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 A Notice of Intention to Sell, Authorization the Distribution of a Notice Inviting Bids and an Official Statement in Connection with the Offering and Sale of such Notes and Authorizing the Execution of Other Necessary Documents and Related Actions. November 2008: Board adopted Resolution No. OCSD 08-22, Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement, a Note Purchase Agreement, and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2008C (Certificate Anticipation Notes), such Notes Evidencing Principal in an Aggregate Amount of Not to Exceed $198,000,000, 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. ADDITIONAL INFORMATION Options Available to the Sanitation District 1. Refund the Maturing 2010B CANs with Fixed Rate Debt The issuance of long-term fixed rate refunding debt will eliminate market access risks (ability to issue debt to refinance maturing debt) and interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing). After the issuance of fixed rate debt, the Sanitation District will not be exposed to changing market conditions. The issuance of long-term fixed rate debt in the current market would result in an average borrowing yield of approximately 4.00%. Fixed rate debt would also remove Page 3 the interest rate hedge originally desired by the Sanitation District (in 2006) which was intended to insulate the District from changes in short-term interest rates as the variable rates on the 2006 COPs was expected to move in tandem with the District’s fluctuating investment portfolio earnings. The following is a current market cost summary (subject to changing market conditions) of Option 1 (Fixed Rate Debt) over the next year: 4.000% Assumed Average Fixed Rate 0.018 Costs of Issuance ($300,000 amortized over life of COPs) 0.043 Underwriter Costs ($723,775 amortized over life of COPs) 4.061% Fixed Rate Cost 2. Refund the Maturing 2010B CANs with Variable Rate Debt Current variable rates on highly-rated California municipal debt are extremely low and attractive at approximately 0.17%. However, the availability of bank support continues to be relatively expensive at three to four times the cost of current variable rates. In addition, the terms and conditions currently demanded by banks are more onerous than during the period prior to the global financial crisis. The following is a current market cost comparison (subject to changing market conditions) versus Option 1 (Fixed Rate Debt) over the next year: Variable% Average Variable Rate 0.600 Bank Liquidity Fee 0.100 Remarketing Fee 0.021 Costs of Issuance ($350,000 amortized over life of COPs) 0.009 Underwriter Costs ($150,000 amortized over life of COPs) 0.730% + Variable% Or if compared to Option 1, break-even average variable rate of 3.331% 3. Refund the Maturing 2010B CANs with a New CANs issue Since the issuance of the 2010B CANs, short-term interest rates have continued to stay low as the current market yield for CANs is approximately 0.27%. The issuance of refunding CANs will continue to allow the Sanitation District to accrue savings at a low fixed rate over the next year while further insulating the District from higher interest rates. The CANs structure will avoid the payment of high fees to liquidity banks and eliminate the risk of interest rates increasing from historic low levels over the next year. Although current variable rates are low (see Option 2 above), there is little room for rates to trend much lower. The following is a current market cost summary (subject to changing market conditions) of Option 3 (CANs) over the next year: 0.270% Assumed One-Year Rate 0.1714 Costs of Issuance ($265,000 amortized over one year) Page 4 0.032 Underwriter Costs ($50,000 amortized over one year) 0.473% or 3.588% less than Option 1 (equal to $5.5 million of savings) A comparison of the CANs refinancing structure to Option 2 above (Variable Rate Debt) shows that future unknown variable rates must be less than zero for variable rate debt to generate a better economic result. The major risk with a CANs structure occurs if the Sanitation District does not have market access to remarket the CANs at maturity (in 2012). However, the Sanitation District (1) has successfully issued one-year CANs in each of the last three years and (2) holds a substantial amount of reserves that could (if the Board chooses) be used to redeem CANs if market access is not available. Staff intends to build in safeguards to avoid the use of Sanitation District reserves unless absolutely necessary: for example, beginning the process of refinancing well in advance of the maturity date of the CANs. To further reduce interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing) the Sanitation District could continue the Accelerated Rate Management (ARM) program with the one-year CAN refinancing debt issuance. Since 2006, the ARM program has used accrued savings (i.e., 0.525% cost on 2010B CANs) compared to a fixed rate assumption (i.e., 2006 fixed rate of 4.54%) to reducing the outstanding amount of debt on a yearly basis. As less debt is outstanding, the Sanitation District significantly reduces its interest rate risk (if higher interest rates occur, the negative effect is mitigated as the higher interest cost is calculated on a smaller principal amount). The implementation of the ARM program since the issuance of the 2006 COPs has decreased the interest rate risk to the Sanitation District as the break-even rate (the average future interest rate for the remaining debt from the 2006 COPs issuance) is now over 7.5%. If the Sanitation District refinances the 2010B CANs with one-year CANs and current market conditions do not change, the break-even rate will increase to over 8.2%. In addition, the original variable rate structure of the 2006 COPs and the three past CANs refinancing issuances have saved the Sanitation District over $19.5 million compared to the alternative of issuing fixed rate debt in 2006. Staff is recommending Option 3, the refunding of the 2010B CANs with a new one- year CAN that will again enable the Sanitation District to lock-in a low rate for approximately one year without (a) encumbering cash reserves; (b) exposing the Sanitation District to relatively high bank liquidity costs associated with variable rate debt; and, (c) allowing for flexibility to continue to accrue savings while insulating the Sanitation District from higher interest rates. If the Sanitation District pursues Option 3, the refunding CANs can be sold on a competitive basis in order to obtain the lowest financing cost possible. Page 5 Staff and consultants will be available to make a brief presentation and provide an overview of the financing schedule at the Administration Committee meeting. Following is a chart listing the remaining steps to be completed for the issuance of the Revenue Refunding Certificate Anticipation Notes, Series 2011B debt issuance: October Ø Board approval of legal and disclosure documents Ø Financing Corporation approval of legal and disclosure documents Ø Receive Ratings from Bond Rating Agencies November Ø Receive competitive bids Ø Closing CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A