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HomeMy WebLinkAbout12-14-2022 Administration Committee Meeting Complete Agenda PacketC)C6SAN ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS Governor Newsom signed Assembly Bill (AB) 361 on September 16, 2021, which, in part, addresses the conduct of public meetings in light of the continued State of Emergency order. Effective October 1, 2021, AB 361 suspends the requirements located in California Government Code, Section 54953, Subdivision (b), Paragraph (3) specifically pertaining to the conduct of public meetings. As such, the Orange County Sanitation District (OC San) Board of Directors has determined that due to the size of OC San's Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and via Internet accessibility. PUBLIC PARTICIPATION Your participation is always welcome. OC San offers several ways in which to interact during meetings. You will find information as to these opportunities below. ONLINE MEETING PARTICIPATION You may join the meeting live via Teams on your computer or similar device or web browser by using the link below: Click here to join the meeting We suggest testing joining a Teams meeting on your device prior to the commencement of the meeting. For recommendations, general guidance on using Teams, and instructions on joining a Teams meeting, please click here. Please mute yourself upon entry to the meeting. Please raise your hand if you wish to speak during the public comment section of the meeting. The Clerk of the Board will call upon you by using the name you joined with. Meeting attendees are not provided the ability to make a presentation during the meeting. Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to present any items. Additionally, camera feeds may be controlled by the meeting moderator to avoid inappropriate content. HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE To join the meeting from your phone: Dial (213) 279-1455 When prompted, enter the Phone Conference ID: 731 390 350# All meeting participants may be muted during the meeting to alleviate background noise. If you are muted, please use *6 to unmute. You may also mute yourself on your device. Please raise your hand to speak by using *5 during the public comment section of the meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone number as identification. NOTE: All attendees will be disconnected from the meeting at the beginning of Closed Session. If you would like to return to the Open Session portion of the meeting, please login or dial -in to the Teams meeting again and wait in the Lobby for admittance. VIEW THE MEETING ONLINE ONLY The meeting will be available for online viewing only at: https://ocsd.legistar.com/Calendar.aspx HOW TO SUBMIT A COMMENT You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please raise your hand as described above or alert the Clerk of the Board before or during the public comment period. You may also submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk(o)_ocsan.gov with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)" or "PUBLIC COMMENT NON -AGENDA ITEM". You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. TECHNICAL SUPPORT PRIOR TO AND DURING MEETINGS For technical assistance before and during the meeting, please call 714-593-7431. For any other questions and/or concerns, please contact the Clerk of the Board's office at 714-593-7433. Thank you, in advance, for your patience in working with these technologies. We appreciate your interest in OC San! 10844 Avenue Fountainn Valley, CA 92708 OC6SAN714...2.241, ORANGE COUNTY SANITATION DISTRICT www.ocsan_gov December 7, 2022 NOTICE OF REGULAR MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, December 14, 2022 — 5:00 P.M. ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. Specific information as to how to participate in this meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. The Regular Meeting of the Administration Committee of the Orange County Sanitation District will be held at the above location and in the manner indicated on Wednesday, December 14, 2022 at 5:00 p.m. Serving: Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alam itos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park County of Orange Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District Our Mission. To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 12/14/22 12115122 JANUARY DARK 01/25/23 02/08/23 02/22/23 03/08/23 03/22/23 04/12/23 04/26/23 05/10/23 05/24/23 06/14/23 06/28/23 07/12/23 07/26/23 AUGUST DARK 08/23/23 09/13/23 09/27/23 10/11 /23 10/25/23 11 /08/23 11115123 ** * Meeting will be held on the third Thursday of the month ** Meeting will be held on the third Wednesday of the month ROLL CALL ADMINISTRATION COMMITTEE Finance, Information Technology, Environmental Services and Human Resources Meeting Date: December 14, 2022 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (13) Brea VACANT Anthony Kuo, Vice -Chair Brad Aver Art Brown Beach VACANT -Huntington Rose Espinoza Patrick Harper Jordan Nefulda Andrew Nguyen David Shawver John Withers Chad Wanke Board Chair Ryan Gallagher (Board Vice -Chair) OTHERS Brad Hogin, General Counsel STAFF Jim Herberg, General Manager Rob Thompson, Assistant General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Director of Engineering -KathyMillea, Riaz Moinuddin, Director of Operations & Maintenance Lan Wibor , Director of Environmental Services Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 12/07/2022 BOARD OF DIRECTORS Complete Roster ALTERNATE AGENCY/CITIES ACTIVE DIRECTOR DIRECTOR Anaheim Stephen Faessel VACANT Brea VACANT Cecilia Hupp Buena Park Art Brown Connor Traut Cypress Paulo Morales Anne Hertz-Mallari Fountain Valley Patrick Harper Ted Bui Fullerton Jesus J. Silva Nick Dunlap Garden Grove Steve Jones John O'Neill Huntington Beach VACANT Dan Kalmick Irvine Anthony Kuo Farrah N. Khan La Habra Rose Espinoza Steve Simonian La Palma Marshall Goodman Nitesh Patel Los Alamitos VACANT Jordan Nefulda Newport Beach Brad Avery Joy Brenner Orange Kim Nichols Chip Monaco Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Nelida Mendoza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Ryan Gallagher Austin Lumbard Villa Park VACANT VACANT Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Mark Nguyen Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Tom Lindsey County Areas Board of Supervisors Donald P. Wagner Doug Chaffee OC6SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 - 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 ACCOMMODATIONS FOR THE DISABLED: If you require any special disability related accommodations, please contact the Orange County Sanitation District (OC San) Clerk of the Board's office at (714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the OC San's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the OC San's website at www.ocsan.gov 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. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board at (714) 593-7433. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsan.gov at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg, jherberg@ocsan.gov / (714) 593-7300 Asst. General Manager: Lorenzo Tyner, Ityner@ocsan.gov / (714) 593-7550 Asst. General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsan.gov / (714) 593-7202 Director of Engineering: Kathy Millea, kmillea@ocsan.gov / (714) 593-7365 Director of Environmental Services: Lan Wiborg, Iwiborg@ocsan.gov / (714) 593-7450 Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please raise your hand (directions provided in the Special Notice attached to this agenda) or alert the Clerk of the Board before or during the public comment period. You may submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk@ocsan.gov with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)"or "PUBLIC COMMENT NON -AGENDA ITEM". You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Ca/endar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. REPORTS: The Chairperson 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. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. APPROVAL OF MINUTES RECOMMENDATION: 2022-2645 Approve Minutes of the Regular Meeting of the Administration Committee held November 9, 2022. Originator: Kelly Lore Page 1 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 2 93 Attachments: Agenda Report 11-09-2022 Administration Committee Minutes INVEST AND/OR REINVEST ORANGE COUNTY SANITATION 2022-2389 DISTRICT'S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 22-36, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest the Orange County Sanitation District's Funds, Adopting the Orange County Sanitation District's Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OC SAN 21-22". Originator: Lorenzo Tyner Attachments: Agenda Report OC San Calendar Year 2022 Investment Policy Statement Redline OC San Calendar Year 2023 Investment Policv Statement Clean Proposed Resolution No. OC SAN 22-36 MOVE MANAGEMENT CONSULTING SERVICES RECOMMENDATION: 2022-2585 A. Approve a Professional Consultant Services Agreement to CBRE, Inc. to provide Move Management Consulting Services, Specification No. CS-2022-1336, for a total amount not to exceed $108,390; and B. Approve a contingency of $10,839 (10%). Originator: Kathy Millea Attachments: Agenda Report CS-2022-1336 PCSA 4. MANAGED COPY CENTER SERVICES CHANGE ORDER 2022-2651 RECOMMENDATION: A. Approve a Change Order to add $25,000 to Purchase Order 107521-OB for ARC Document Solutions to provide copy center services in accordance with the scope of work and terms and conditions of Specification No. S-2020-1177BD, for a new total amount not to exceed $115,000 for the current contract year (January 1, 2022-December 31, 2022); and Page 2 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 B. Approve three optional one-year renewals for a total amount not to exceed $115,000 per year. Originator: Lorenzo Tyner Attachments: Agenda Report 5. CONTRACTING AQUATIC BIOASSAY & CONSULTING 2022-2655 LABORATORIES, INC. FOR TAXONOMIC SERVICES RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a General Services Contract to Aquatic Bioassay & Consulting Laboratories, Inc. to provide services for sample processing and taxonomic identification of ocean bottom -dwelling animals as required by Orange County Sanitation District's NPDES ocean discharge permit, Specification No. S-2022-1366BD, for a total amount not to exceed $200,000 for the period beginning March 1, 2023, through February 29, 2024, with four (4) one-year renewal options; and B. Approve an annual contingency of $20,000 (10%). Originator: Lan Wiborg Attachments: Agenda Report S-2022-1366BD General Services Contract NON -CONSENT: 6. INTERNET FIREWALL UPGRADE 2022-2648 RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file bid tabulation for Fortigate Firewall Upgrade, Specification No. E-2022-1363BD; B. Receive and file first Notice of Intent to Award dated October 13, 2022; C. Receive and file protest letter received from NH&A, LLC dated October 13, 2022 concerning the award to Xpert Solutions, Inc.; D. Receive and file second Notice of Intent to Award dated October 14, 2022; E. Receive and file second protest letter received from Xpert Solutions, Inc. dated October 18, 2022 concerning the award to NH&A, LLC; F. Receive and file Orange County Sanitation District's Protest Response Letter dated October 31, 2022; Page 3 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 7 G. Approve a Purchase Order Contract to NH&A, LLC for the purchase of Fortigate Firewall Upgrade, Specification No. E-2022-1363BD, for a total amount not to exceed $226,698 plus applicable sales tax; H. Approve four (4) optional one-year renewals for maintenance and support for an annual amount not to exceed $80,458 plus applicable sales tax; and Approve a contingency of $22,670 (10%) for the purchase upgrades and subsequent renewals. Originator: Attachments: Lorenzo Tyner Agenda Report Bid Tabulation Notice of Intent to Award 10-13-2022 Award Protest Request - NH&A 10-13-2022 Revised Notice of Intent to Award 10-14-2022 Opposition and Protest to Bid Award 10-18-2022 OC San Protest Response - E-2022-1363BD 10-31-2022 NEW HEADQUARTERS AND INDUSTRIAL CONTROL SYSTEM 2022-2637 NETWORK EQUIPMENT RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Purchase Order to ePlus Technology, Inc. for the purchase of information technology hardware (New Headquarters & Industrial Control System Network Equipment), Specification No. E-2022-136013D, for a total amount not to exceed $428,865, plus applicable sales tax and shipping; and B. Approve a contingency in the amount of $42,886 (10%). Originator: Lorenzo Tyner Attachments: Agenda Report ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUE 2022-2411 PROGRAM RATE STUDY RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District's 2022 Wastewater Rates, Fees, and Charges Study completed by HDR Engineering, Inc. Originator: Lorenzo Tyner Attachments: Agenda Report 2022 OC San Rate Studv (Draft Presentation - Rate Proaram Summa Page 4 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 0 10. PROPOSITION 218 NOTIFICATIONS RECOMMENDATION: Recommend to the Board of Directors to: 2022-2412 A. Direct staff to prepare and mail Proposition 218 compliant notifications to affected property owners outlining a five-year regional sewer service fee schedule with annual increases of approximately 3.5 percent for fiscal years 2023-24 through 2027-28; and B. Authorize the General Manager to select a service provider for preparing, printing, and mailing the Proposition 218 compliant notifications and execute a Purchase Order for an amount not to exceed $370,000. Originator: Lorenzo Tyner Attachments: Agenda Report DENALI WATER SOLUTIONS, LLC BIOSOLIDS HAULING SERVICES - 2022-2657 SPECIFICATION NO. S-2020-1208BD - CONTINGENCY INCREASE RECOMMENDATION: Recommend to the Board of Directors to: Approve an additional 10% unit price per ton contingency (for a total of 20% unit price per ton contingency) for Denali Water Solutions, LLC Biosolids Hauling Services Specification No. S-2020-1208BD contract renewal to collect and haul Orange County Sanitation District's biosolids to the Inland Empire Regional Composting Facility and alternative sites for the period between January 1, 2023 through December 31, 2023. Originator: Attachments INFORMATION ITEMS: None. Lan Wiborg Agenda Report Presentation - Denali Contingency Increase DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Page 5 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Administration Committee on February 8, 2023 at 5:00 p.m. Page 6 of 6 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2645 Agenda Date: 12/14/2022 Agenda Item No: 1. FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held November 9, 2022. BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. 1:74AA%1LI11&3IF_1z117_1:713� :Z .7[17Me , 015SX9ZOy_1,0i►49iZ! ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Minutes of the Administration Committee meeting held November 9, 2022 Orange County Sanitation District Page 1 of 1 Printed on 12/5/2022 powered by LegistarTIM Orange County Sanitation District Wednesday, November 9, 2022 Minutes for the 5:00 PM ADMINISTRATION COMMITTEE Board Room OC6SAN Administration Building ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chair Glenn Parker on Wednesday, November 9, 2022 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Chair Parker stated that the meeting was being held telephonically and via Internet accessibility. Chair Parker led the flag salute. ROLL CALL AND DECLARATION OF QUORUM: The Clerk of the Board declared a quorum present as follows: PRESENT: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers ABSENT: Brad Avery and Rose Espinoza STAFF PRESENT: Kelly Lore, Clerk of the Board, and Brian Engeln were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Riaz Moinuddin, Director of Operations and Maintenance; Lan Wiborg, Director of Environmental Services; Mo Abiodun; Randa Abu Shaban; Janine Aguilar; Jennifer Cabral; Kim Cardenas; Tina Knapp; Laura Maravilla; Tom Meregillano; Rob Michaels; Wally Ritchie; Thomas Vu; and Ruth Zintzun were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel, and Jennifer Farr, Partner at Davis Farr LLP, were in attendance virtually. PUBLIC COMMENTS: rem REPORTS: Chair Parker did not provide a report. General Manager Jim Herberg reminded the Committee of the upcoming Special Board Meeting - State of OC San on November 15, 2022 at 9:00 a.m.; Regular meeting of the Board on November 16, 2022; and the upcoming administrative offices holiday closures on November 11, 24, 25 and December 23 and 26. Page 1 of 7 ADMINISTRATION Minutes November 9, 2022 COMMITTEE Assistant General Manager Lorenzo Tyner reported that information regarding the upcoming rate study would be presented as an informational item at the Steering Committee meeting in November; and the final rate study would be presented to the Administration Committee and the Board of Directors meetings in December for approval. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2022-2584 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held October 12, 2022. AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None 2. CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER 2022-2386 ENDED SEPTEMBER 30, 2022 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District First Quarter Financial Report for the period ended September 30, 2022. AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None Page 2 of 7 ADMINISTRATION Minutes November 9, 2022 COMMITTEE 3. SERVICENOW IT SERVICE MANAGEMENT LICENSE RENEWAL 2022-2590 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Purchase Order to Insight Public Sector for the purchase of ServiceNow License Renewal using the OMNIA Partners Public Sector (formerly U.S. Communities) cooperative contract #4400006644 for a one-year contract for the period of December 30, 2022 through December 29, 2023 for a total amount not to exceed $112,408, plus tax and delivery (if applicable); and B. Approve a contingency of $11,241 (10%). AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None 4. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS 2022-2595 TO THE PRE -APPROVED OEM SOLE SOURCE LIST Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of July 1, 2022 to September 30, 2022; and B. Approve the following additions to the pre -approved OEM Sole Source List: • BEAMEX - Maintenance and Support for CMX Calibration Software and CMX Business Bridge Software • FORD HALL COMPANY INC. - Weir Wolf/Algae Sweep Automation Cleaning Equipment Parts and Service • MIDWAY MANUFACTURING & MACHINE - Custom Brackets & Fittings for Vehicles / Electric Carts and Portable Equipment • VAPEX ENVIRONMENTAL TECHNOLOGIES - SENTINEL Scrubber Monitor/Controller Products AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers Page 3 of 7 ADMINISTRATION Minutes COMMITTEE NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None NON -CONSENT: 5. COOPERATIVE PROCUREMENT AGREEMENTS Originator: Lorenzo Tyner November 9, 2022 2022-2582 Mr. Tyner provided a verbal presentation of the item and responded to questions from the Committee regarding the cooperative procurement process including the competitive bidding and approval at the State level; and no obligation to purchase through the process. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Authorize the purchasing of information technology products, services, and solutions utilizing Cooperative Procurement Agreements (CPA) such as, but not limited to, OMNIA Partners Public Sector (formerly U.S. Communities), NASPO ValuePoint, and U.S. General Services Administration GSA Schedule 70/ GSA Multiple Award Schedule (MAS) for the period January 1, 2023 through December 31, 2023 for a total amount not to exceed $2,000,000, in accordance with Ordinance No. OCSD-56, Section 2.03(B) Cooperative Purchases, with two (2) one-year renewal options. AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None 6. EMISSION REDUCTION CREDITS BROKER SOLICITATION 2022-2587 Originator: Lan Wiborg Director of Environmental Services Lan Wiborg provided a PowerPoint presentation including a brief overview of emission reduction credits, priority reserve bank, and reactive organic gases surplus. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 4 of 7 ADMINISTRATION Minutes November 9, 2022 COMMITTEE Approve the solicitation for an Emission Reduction Credits (ERCs) brokerage firm to identify and secure a buyer(s) for the sale of surplus Reactive Organic Gases (ROG) ERCs at the best available value and to handle all market evaluations of ERCs, negotiations, and financial transactions with all appropriate parties. AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None 7. ORANGE COUNTY SANITATION DISTRICT ANNUAL 2022-2387 COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR END JUNE 30, 2022 Originator: Lorenzo Tyner OC San Accounting Supervisor Kim Cardenas provided a PowerPoint presentation including an overview of the Annual Comprehensive Financial report (ACFR), OC San's financial net position including increases and historical position, financial performance, capital improvement outlays, and available resources. Jennifer Farr, of Davis Farr, provided a PowerPoint presentation of the OC San audit including: the positive audit results of the ACFR, noting the approach taken and upcoming changes in audit standards. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District's (OC San) Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2022, prepared by staff and audited by Davis Farr, Certified Public Accountants, along with the following reports prepared by Davis Farr: 1. Report to the Board of Directors; 2. Independent Accountants' Report on Agreed -Upon Procedures Applied to Appropriations Limit Worksheets; and 3. Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards. AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher, Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew Nguyen, Chad Wanke and John Withers NOES: None ABSENT: Brad Avery and Rose Espinoza ABSTENTIONS: None Page 5 of 7 ADMINISTRATION Minutes November 9, 2022 COMMITTEE INFORMATION ITEMS: 8. HUMAN RESOURCES DEPARTMENT OVERVIEW Originator: Celia Chandler 2022-2606 Director of Human Resources Celia Chandler introduced HR and Risk Manager Laura Maravilla who provided a PowerPoint presentation that gave an overview of the Human Resources Department including Employee and Labor Relations, HR Operations, and Risk Management. ITEM RECEIVED AS AN: Information Item. DEPARTMENT HEAD REPORTS: Director of Operations and Maintenance Riaz Moinuddin provided an update on the recent Newport Beach spill near the Lido Pump Station. He stated that an additional update would be provided at the December Operations Committee meeting. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Prior to adjournment, Chair Parker stated this would be his last meeting serving as Administration Committee Chairman as he did not seek reelection. He thanked everyone for their support. Chair Parker declared the meeting adjourned at 6:08 p.m. to the next Regular Administration Committee meeting to be held on Wednesday, December 14, 2022 at 5:00 p.m. Page 6 of 7 ADMINISTRATION Minutes November 9, 2022 COMMITTEE Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 7 of 7 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAN Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2389 Agenda Date: 12/14/2022 Agenda Item No: 2. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INVEST AND/OR REINVEST ORANGE COUNTY SANITATION DISTRICT'S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT GENERAL MANAGER'S RECOMMENDATION IV:tole] 1TAIf•1a101�7_,11[61,01M - • i 0FIrmi3.10 i1 ona91 Rag re= on Adopt Resolution No. OC SAN 22-36, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest the Orange County Sanitation District's Funds, Adopting the Orange County Sanitation District's Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OC SAN 21-22". 1 :(r]:19111ZI III] As there were no significant changes in State law governing the Orange County Sanitation District's (OC San) investments, this agenda item presents updates to the OC San Investment Policy Statement for consideration by the Administration Committee as it is the oversight committee for the Investment Policy (Section 18.2). The Investment Policy reflects minor changes which include minor formatting and grammatical corrections. With adoption of the Resolution, the Board of Directors would readopt OC San's Investment Policy Statement, portfolio performance benchmarks, and monitoring and reporting requirements for calendar year 2023. RELEVANT STANDARDS • Comply with OC San Policy: OC San Investment Policy • Comply with Government Code Sections 53607 & 53646 PROBLEM Government Code §53607 allows for the Board of Directors to delegate authority to invest and/or reinvest OC San's funds to the Treasurer for a one-year period. Government Code §53646 requires OC San to review its Investment Policy annually and readopt its Policy at a public meeting, which will establish specific performance benchmarks and objectives, and specific monitoring and reports. Pursuant to Government Code §53646, OC San's Investment Policy must be reviewed and readopted prior to December 31, 2022. Orange County Sanitation District Page 1 of 3 Printed on 12/5/2022 powered by LegistarTIM File #: 2022-2389 Agenda Date: 12/14/2022 Agenda Item No: 2. PROPOSED SOLUTION With adoption of the proposed Resolution, the Board of Directors would renew its delegation of investment authority to the Assistant General Manager & Director of Finance and Administrative Services/Treasurer for a one-year period, January 1, 2023 to December 31, 2023, in compliance with the requirements of Government Code §53607. Each year, the Board of Directors will consider similar actions, along with the annual reconsideration of OC San's Investment Policy. TIMING CONCERNS The Board of Directors delegation of authority to the Assistant General Manager & Director of Finance and Administrative Services/Treasurer to invest and/or reinvest OC San's funds will expire on December 31, 2022. RAMIFICATIONS OF NOT TAKING ACTION OC San's Assistant General Manager & Director of Finance and Administrative Services/Treasurer will not have the authority to invest and/or reinvest OC San's funds and OC San will not be in compliance with Government Code §53646. PRIOR COMMITTEE/BOARD ACTIONS December 2021 - Board adopted Resolution No. OC SAN 21-22, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest the Orange County Sanitation District's Funds, Adopting the Orange County Sanitation District's Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OCSD 20-13". ADDITIONAL INFORMATION OC San's Investment Policy Statement is a comprehensive document describing the policy, authorizations, benchmarks, delegations, and investment limitations. The Investment Policy will govern the investment activities of Chandler Asset Management, OC San's external money manager, on behalf of OC San. Annual Review of Investment Policy The Investment Policy includes the requirement that OC San shall review its Investment Policy annually (Sections 1.2 and 18.1). Chandler Asset Management reviewed the existing policy to ensure that the language remains current with the Government Code. The proposed Investment Policy is attached with redlined changes from the most recent approved policy in December 2021. Annual Deleaation of Investment Autho Effective January 1, 1997, Government Code §53607 states that governing boards of local agencies may only delegate authority to invest and/or reinvest agency funds to the agency's Treasurer for a one-year period. Orange County Sanitation District Page 2 of 3 Printed on 12/5/2022 powered by LegistarTM File #: 2022-2389 Agenda Date: 12/14/2022 Agenda Item No: 2. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Orange County Sanitation District Calendar Year 2022 Investment Policy Statement (Redline) • Orange County Sanitation District Calendar Year 2023 Investment Policy Statement (Clean) Proposed Resolution No. OC SAN 22-36 Orange County Sanitation District Page 3 of 3 Printed on 12/5/2022 powered by LegistarT" ORANGE COUNTY SANITATION DISTRICT INVESTMENT POLICY STATEMENT 1.0 Policy: It is the policy of the Orange County Sanitation District (OC San) to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds. 1.1. This Investment Policy is set forth by OC San for the following purposes: 1.1.1. To establish a clear understanding for the Board of Directors, OC San management, responsible employees and third parties of the objectives, policies and guidelines for the investment of OC San's idle and surplus funds. 1.1.2. To offer guidance to investment staff and any external investment advisors on the investment of OC San funds. 1.1.3. To establish a basis for evaluating investment results. 1.2. OC San establishes investment policies which meet its current investment goals. OC San shall review this policy annually and may change its policies as its investment objectives change. 2.0 Scope: This Investment Policy applies to all financial assets of OC San; except for the proceeds of OC San's capital projects financing program, which are invested in accordance with provisions of their specific bond indentures; and such other funds excluded by law or other Board -approved covenant or agreement. These funds are accounted for by OC San as Enterprise Funds as represented in OC San's Annual Comprehensive Financial Report. 3.0 Standard of Prudence: The standard of prudence to be used by OC San internal staff, and any authorized investment advisor(s), shall be as described in Section 53600.3 of the California Government Code as follows: Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and Page 1 familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. 4.0 Investment Objectives: The primary objectives of OC San's investment activities, in priority order, and as described in Section 53600.5 of the California Government Code, shall be: 4.1 Safety: The safety and preservation of principal is the foremost objective of the investment program of OC San. Investments shall be selected in a manner that seeks to ensure the preservation of capital in OC San's overall portfolio. This will be accomplished through a program of diversification, more fully described in Section 13.0, and maturity limitations, more fully described in Section 14.0, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 Liquidity: The investment program will be administered in a manner that will ensure that sufficient funds are available for OC San to meet its reasonably anticipated operating expenditure needs. 4.3 Return on Investments: The OC San investment portfolio will be structured and managed with the objective of achieving a market rate of return throughout budgetary and economic cycles, commensurate with legal, safety and liquidity considerations. 5.0 Delegation of Authority: 5.1 Authority to manage OC San's investment program is derived from the California Government Code Sections 53600 et seq. and Sections 53635 et seq. The Board of Directors hereby delegates management responsibility for OC San's investment program to its Assistant General Manager & Director of Finance and Administrative Services/Treasurer, who shall establish written procedures for the operation of the investment program, consistent with this pPolicy. The Controller/Assistant Treasurer shall be responsible for day-to-day administration, monitoring; and the development of written administrative procedures for the operation of the investment program, consistent with this pPolicy. No person may engage in an investment transaction except as provided under the terms of this pPolicy and the procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken by OC San internal staff and shall establish a system of controls to regulate the activities of internal staff and external investment advisors engaged in accordance with Section 5.3. 5.2 The administrative procedures for the operation of OC San's investment program will provide for, but not be limited to, the following: Page 2 5.2.1 Formats for monthly and quarterly reports to the Administration Committee and the Board of Directors. 5.2.2 Compliance with generally accepted accounting principles of the Government Accounting Standards Board. 5.2.3 Establishment of benchmarks for performance measurement. 5.2.4 Establishment of a system of written internal controls. 5.2.5 Establishment of written procedures for competitive bids and offerings of securities that may be purchased or sold by internal OC San staff. 5.2.6 Establishment of a Desk Procedures Manual for treasury operations and management. 5.3 The Board of Directors may, in its discretion, engage the services of one or more registered investment advisors to assist in the management of OC San's investment portfolio in a manner consistent with OC San's objectives. Such external investment advisors, which shall be selected through a competitive process, shall be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such advisors must be registered under the Investment Advisers Act of 1940 or be exempt from such registration. 6.0 Ethics and Conflicts of Interest: Officers and employees of OC San involved in the investment process shall refrain from personal business activities that could conflict with proper execution of OC San's investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions that conduct business within OC San's boundaries, and they shall further disclose any large personal financial/investment positions, the performance of which could be related to the performance of positions in OC San's portfolio. 7.0 Authorized Financial Dealers and Institutions: 7.1 For investment transactions conducted by OC San internal staff, the Treasurer will maintain a list of financial institutions authorized to provide investment services to OC San, including "primary" or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital rule) and Federal or State of California chartered banks. No public deposit shall be made except in a qualified public depository as established by State law. Page 3 All financial institutions which desire to become qualified bidders for investment transactions with OC San must supply the following for evaluation by the Treasurer: 7.1.1. Audited financial statements for the institution's threes most recent fiscal years. 7.1.2. A statement, in the format prescribed by the Government Finance Officers Association (GFOA), certifying that the institution has reviewed OC San's Investment Policy and that all securities offered to OC San shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. The current statement is presented in Appendix "A." 7.1.3. A statement describing the regulatory status of the dealer, and the background and expertise of the dealer's representatives. Selection of financial institutions, broker/dealers and banks authorized to engage in transactions with OC San shall be made through a competitive process. An annual review of the financial condition of qualified institutions will be conducted by the Treasurer. 7.2 Selection of broker/dealers used by external investment advisors retained by OC San, shall be in compliance with contract provisions between OC San and any external investment advisors and shall be in substantially the following form: Use of Securities Brokers: Neither the Investment Advisor nor any parent, subsidiary or related firm shall act as a securities broker with respect to any purchases or sales of securities which may be made on behalf of OC San, provided that this limitation shall not prevent the Investment Advisor from utilizing the services of a securities broker which is a parent, subsidiary or related firm, provided such broker effects transactions on a "cost only" or "nonprofit" basis to itself and provides competitive execution. The Investment Advisor shall provide OC San with a list of suitable independent brokerage firms (including names and addresses) meeting the requirements of Government Code Section 53601.5, and, unless otherwise directed by OC San, the Investment Advisor may utilize the service of any of such independent securities brokerage firms it deems appropriate to the extent that such firms are competitive with respect to price of services and execution. 8.0 Authorized and Suitable Investments: All investments shall be made in accordance with the California Government Code including Sections 16429.1 et seq., 53600 et seq.; and 53684, and as described within this Investment Policy. Permitted investments under this pPolicy shall include: Page 4 8.1 Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government, a federal agency, or a US Government -sponsored enterprise pursuant to Section 53601 (f) of the California Government Code. US Treasury securities must make up at least 10% of the portfolio. 8.2 Supranational Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank. Securities must be eligible for purchase in the United States and be U S dollar denominated senior unsecured unsubordinated obligations, with a maximum maturity of five years. Securities eligible for purchase under this section must be rated "AX or better by a Nationally Recognized Statistical Rating Organization (NRSRO) and shall not exceed 30% of the total portfolio. 8.3 Mortgage pass -through security, collateralized mortgage obligation, mortgage -backed or other pay -through bond, equipment lease -backed certificate, consumer receivable pass -through certificate, or consumer receivable -backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision may not exceed 20% peFGent of the agency's surplus moneys that may be invested pursuant to this section. Purchase of mortgage derivatives, which include interest -only payments (IOs) and principal -only payments (POs); inverse floaters, and RE-REMICs (Real Estate Mortgage Investment Conduits), is hereby prohibited. 8.4 Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided by an NRSRO and issued by a domestic corporation organized and operating in the United States with assets in excess of $500 million and having a rating of "A" or better on its long-term debt as provided by an NRSRO. Purchases of eligible commercial paper may not exceed 270 days to maturity from the date of purchase. Purchases of commercial paper shall not exceed 40% of the market value of the portfolio. No more than 5% of the market value of the portfolio, or 10% of the issuer's outstanding paper, may be invested in commercial paper issued by any one eligible corporation. 8.5 Banker's acceptances issued by institutions, the short-term obligations of which are rated of the highest ranking or the highest letter and number rating as provided by an NRSRO provided that: (a) the acceptance is eligible for purchase by the Federal Reserve System; (b) the maturity does not exceed 180 days; (c) no more than 40% of the total portfolio may be invested in banker's acceptances; and (d) no more than 5% of the total portfolio may be invested in the banker's acceptances of any one commercial bank. Page 5 8.6 Medium term (or corporate) notes of a maximum of five {-}years maturity issued by corporations organized and operating within the United States, or issued by depository institutions licensed by the United States, or any state, and operating within the United States with assets in excess of $500 million, and which is rated in a rating category of "A" or better on its long-term debt as provided by an NRSRO. If, after purchase, the rating of an eligible note falls below the minimum rating category stipulated above, the external investment advisor shall notify OC San of the downgrade and shall present an analysis and recommendations as to the disposition of the note consistent with the investment objectives of this Investment Policy. No more than 30% of the portfolio may be invested in medium term notes. 8.7 Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by California Government Code Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. 8.8 Shares of mutual funds investing in securities permitted under this policy and under Section 53601 (1) of the California Government Code. Such funds must either: (1) attain the highest ranking, or the highest letter and numerical rating, provided by not less than two of the three largest nationally recognized rating services; or (2) have an Investment Advisor registered with the Securities and Exchange Commission with not less than five) years of experience investing in the securities and obligations authorized under this pP-olicy and under California Government Code Section 53601 and with assets under management in excess of $500 million. The purchase price of shares of beneficial interest purchased pursuant to this policy and the California Government Code may not include any commission that the companies may charge and shall not exceed 20% of OC San's surplus money that may be invested pursuant to this section. No more than 10% of OC San's surplus funds may be invested in shares of beneficial interest of any ones mutual fund pursuant to this section. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation. 8.9 Certificates of deposit: 8.9.1 Secured (collateralized) time deposits issued by a nationally or state -chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code, and having a net operating profit in the twos most recently completed fiscal years. Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500 Page 6 et seq., and Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law, Section 16600 et seq., of the California Government Code. 8.9.2 Negotiable certificates of deposit (NCDs) issued by a nationally or state -chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code; and which shall have a rating of "A" or better on its long-term debt as provided by a NRSRO; or which shall have the highest letter and number rating for deposits as provided by a NRSRO; or as otherwise approved by the Board of Directors. No more than 30% of the portfolio may be invested in securities pursuant to this section. 8.9.3 To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured individual loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisorial agency of its record of meeting the credit needs of California's communities, including low and moderate income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. 8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United States. Such securities must be rated "A" or higher by a NRSRO; or as otherwise approved by the Board of Directors. 8.11 The State of California Local Agency Investment Fund (LAIF). LAIF is an investment alternative for California's local governments and special districts managed by the State Treasurer's Office. LAIF is more fully described in the Glossary (See Appendix "C"). OC San shall use LAIF as a short-term cash management facility. Investment of OC San funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this olicy. 8.12 The Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP). The OCCIP is a money market investment pool managed by the Orange County Treasurer's Office. OCCIP is more fully described in the Glossary (See Appendix "C"). OC San has no funds invested in OCCIP at this time. Investment of OC San funds in OCCIP would be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this olicy. 8.13 Repurchase agreements provided that: 8.13.1 All repurchase agreements shall be collateralized with securities eligible for purchase under this olicy. In order to anticipate market changes and to provide a level of security for all repurchase agreement Page 7 transactions, collateral ization shall be maintained at a level of at least 102% of the market value of the repurchase agreements and shall be adjusted no less than weekly. 8.13.2 All repurchase agreements must be the subject of a Master Repurchase Agreement between OC San and the provider of the repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by the Securities Industry and Financial Markets Association. 8.14 Reverse repurchase agreements provided that: 8.14.1 No more than five n�P 5% of OC San's portfolio shall be invested in reverse repurchase agreements, and there shall be no long-term reverse repurchase agreements unless otherwise authorized by the Board of Directors. 8.14.2 The maximum maturity of reverse repurchase agreements shall be Ret090 days. 8.14.3 Reverse repurchase agreements shall mature on the exact date of a known cash flow which will be unconditionally available to repay the maturing reverse repurchase agreement. 8.14.4 Proceeds of reverse repurchase agreements shall be used solely to supplement portfolio income or to provide portfolio liquidity and shall not be used to speculate on market movements. 8.14.5 All reverse repurchase agreements must be the subject of a Master Repurchase Agreement between OC San and the provider of the reverse repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by the Securities Industry and Financial Markets Association. 8.15 Public Bank Obligations of a maximum of five} years maturity which includes commercial paper, debt securities, or other obligations of a public bank, a public bank as defined in California Government Code Section 57600-57607. 8.16 Sales of OC San -owned securities in the secondary market may incur losses in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal, or when trading for securities that result in an expected net economic gain to OC San. 8.17 If securities owned by OC San are downgraded below the quality required by this Investment Policy, it shall be OC San's policy to review the credit 'm situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported quarterly to the OC San General Manager, the Administration Committee and Board of Directors. 8.18 OC San is authorized to invest in securities issued by or backed by the United States Government that could result in zero or negative interest accrual if held to maturity. 9.0 Review of Investment Portfolio: The securities held by OC San must be in compliance with Section 8.0 "Authorized and Suitable Investments" at time of purchase. If at a later date, a security is no longer in compliance with Section 8.0, the Treasurer shall report the non -compliant security to the Administration Committee and the Board of Directors and shall include a disclosure in the quarterly Treasurer's Report if the security is held at the date the report is prepared. 10.0 Investment Pools/Mutual Funds: A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. A questionnaire shall be developed that will provide the following information: 10.1 A description of eligible investment securities, and a written statement of investment policy and objectives. 10.2 A description of interest calculations and how they are distributed, and how gains and losses are treated. 10.3 A description of how the securities are safeguarded (including the settlement processes) and how often the securities are priced and the program audited. 10.4 A description of who may invest in the program, how often and what size deposits and withdrawals are allowed. 10.5 A schedule for receiving statements and portfolio listings. 10.6 A description of the utilization and level of reserves, retained earnings or other collateral and how they are used by the fund. 10.7 A fee schedule, and when and how is it assessed. 10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will accept such proceeds. 11.0 Collateralization: Page 9 Generally, the value to secure deposits under this pP-olicy shall comply with Section 53652 of the California Government Code. Collateral ization will be required for secured time deposits, as more fully described in Section 8.9.1; and repurchase agreements, as more fully described in Section 8.13.1. Collateral will always be held by an independent third -party, as more fully described in Section 12.0. The right of collateral substitution is granted. Under provisions of the California Government Code, California banks and savings and loans associations are required to secure OC San's deposits by pledging government securities with a value of 110% of principal and accrued interest. State law also allows financial institutions to secure OC San's deposits by pledging first trust deed mortgage notes having a value of 150% of OC San's total deposits. 12.0 Safekeeping and Custody: All securities transactions, including collateral for repurchase agreements, entered into by, or on behalf of OC San, shall be conducted on a delivery -versus -payment (DVP) basis. Securities will be held by OC San's third -party custodian bank, which shall be selected through a competitive process, or that agent's representative, or in the agent's account at the Federal Reserve Bank, or within clearing corporations in the U.S.; and evidenced by book entry statements. Third -party safekeeping arrangements will be approved by the Treasurer and will be corroborated by a written custodial agreement. 13.0 Diversification: OC San will diversify its investments by security type, issuer and financial institution in accordance with the following: 13.1 There is no limit on investment in securities issued by or guaranteed by the full faith and credit of the U.S. government. 13.2 No more than 20% of the portfolio may be invested in securities of a single agency of the U.S. government, which does not provide the full faith and credit of the U.S. government. 13.3 No more than 5% of the portfolio may be invested in securities of any one issuer, other than Supranationals, the U.S. government or its agencies. Investment in mutual funds is not governed by this Section 13.3. See Section 13.8 for conditions of purchase of mutual funds. 13.4 No individual holding shall constitute more than 5% of the total debt outstanding of any issuer. 13.5 No more than 40% of the portfolio may be invested in banker's acceptances. 13.6 No more than 40% of the portfolio may be invested in commercial paper. 13.7 No more than 30% of the portfolio may be invested in medium -term (corporate) notes. 13.8 No more than 20% of the portfolio may be invested in mutual funds. No Page 10 more than 10% of OC San's portfolio may be invested in shares of beneficial interest of any one mutual fund. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation. 13.9 No more than 30% of the portfolio may be invested in negotiable certificates of deposit. 13.10 No more than 10% of the portfolio may be invested in eligible municipal bonds. 13.11 No more than 20% of the Long Term Operating Monies portfolio may be invested in a combination of mortgage -backed securities, CMOs and asset - backed securities. 13.12 No more than the statutory maximum may be invested in LAIF. 13.13 No more than 15% of the portfolio may be invested in the Orange County Investment Pool. 13.14 No more than 20% of the portfolio may be invested in repurchase agreements. 13.15 No more than 5% of the portfolio may be invested in reverse repurchase agreements. 14.0 Maximum Maturities: To the extent possible, OC San will attempt to match its investments with reasonably anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall designate, from time -to -time, the amounts to be allocated to the investment portfolio. OC San monies invested in accordance with this olicy are divided into two categories: 14.1 Liquid Operating Monies. Funds needed for current operating and capital expenditures are known as Liquid Operating Monies. 14.1.1 The maximum final stated maturity of individual securities in the Liquid Operating Monies account portfolio shall be one year from the date of settlement. 14.1.2 The average duration of the Liquid Operating Monies account portfolio shall be recommended by the Treasurer based on OC San's cash flow requirements but may never exceed 180 days. 14.2 Long Term Operating Monies. Funds needed for longer term purposes are known as the Long Term Operating Monies. 14.2.1 The maximum final stated maturity of individual securities in the Long Term Operating Monies account portfolio shall be five years from Page 11 the date of settlement. 14.2.2 The duration of the Long Term Operating Monies account portfolio shall be recommended by the Treasurer based on OC San's five- year cash flow forecast but may never exceed 60 months. 14.2.3 The duration of the Long Term Operating Monies account portfolio shall never exceed 120% of the duration as established in accordance with Section 14.2.2. 14.2.4 The duration of the Long Term Operating Monies account portfolio shall never be less than 80% of the duration as established in accordance with Section 14.2.2. 15.0 Internal Control: The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 16.0 Performance Objectives and Benchmarks: 16.1 Overall objective. The investment portfolio of OC San shall be designed with the overall objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and reasonably anticipated cash flow needs. 16.2 The Liquid Operating Monies. The investment performance objective for the Liquid Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index approved by the Administration Committee and by the Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OC SAN 2 -XX (see Appendix "B"). 16.3 The Long Term Operating Monies. The investment performance objective for the Long Term Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index selected by the Administration Committee and approved by the Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OC SAN 224-XX (See Appendix "B" 17.0 Reporting: 17.1 Monthly transaction reports in accordance with California Government Code Section 53607 shall be submitted by the Treasurer to the Board of Page 12 Directors. 17.2 Quarterly investment reports will be submitted by the Treasurer to the Administration Committee which shall forward the reports to the Board of Directors. The quarterly reports shall provide clear and concise status information on OC San's portfolios at the end of each reporting period, including performance measures using the benchmarks described in Section 16.0 of this Investment Policy. These reports shall contain listings of individual securities held at the end of each reporting period, and shall disclose, at a minimum, the following information about the risk characteristics of OC San's portfolio: 17.2.1 Cost and accurate and complete market value of the portfolio. 17.2.2 Modified duration of the portfolio compared to Benchmark. 17.2.3 Dollar change in value of the portfolio for a one ^�-�t_(1 %4 change in interest rates. 17.2.4 Percent of portfolio invested in reverse repurchase agreements, and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which are available to repay them at maturity. 17.2.5 For the Liquid Operating Monies account only, the percent of portfolio maturing within 90 days. 17.2.6 Average portfolio credit quality. 17.2.7 Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities. 17.2.8 State that all investments are in compliance with this policy and the California Government Code or provide a listing of any transactions or holdings which do not comply with this policy or with the California Government Code. 17.2.9 Time -weighted total rate of return for the portfolio for the prior three months, six months, nine months, twelve months, year to dand since inception compared to the Benchmark returns for the same periods. 17.2.10 State that sufficient funds are available for OC San to meet its operating expenditure requirements for the next six months, or if not, state the reasons for the shortfall. 17.3 OC San's Treasurer shall meet quarterly with the Administration Committee to review investment performance, proposed strategies, and compliance with this Investment Policy. External investment advisors may be required to attend said meetings at the discretion of the Chair ep rsona of the Page 13 Administration Committee. 18.0 Investment Policy Adoption and Revision: 18.1 The Investment Policy of OC San shall be adopted by resolution of the Board of Directors. The Investment Policy shall be reviewed on an annual basis in accordance with California Government Code Section 53646, by the Administration Committee, which shall recommend revisions, as appropriate, to the Board of Directors. Any modifications made thereto shall be approved by the Board of Directors. 18.2 The Administration Committee shall serve as the oversight committee for OC San's Investment program and shall adopt guidelines for the ongoing review of duration, quality and liquidity of OC San's portfolio. Page 14 ORANGE COUNTY SANITATION DISTRICT INVESTMENT POLICY STATEMENT 1.0 Policy: It is the policy of the Orange County Sanitation District (OC San) to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds. 1.1. This Investment Policy is set forth by OC San for the following purposes: 1.1.1. To establish a clear understanding for the Board of Directors, OC San management, responsible employees and third parties of the objectives, policies and guidelines for the investment of OC San's idle and surplus funds. 1.1.2. To offer guidance to investment staff and any external investment advisors on the investment of OC San funds. 1.1.3. To establish a basis for evaluating investment results. 1.2. OC San establishes investment policies which meet its current investment goals. OC San shall review this policy annually and may change its policies as its investment objectives change. 2.0 Scope: This Investment Policy applies to all financial assets of OC San; except for the proceeds of OC San's capital projects financing program, which are invested in accordance with provisions of their specific bond indentures; and such other funds excluded by law or other Board -approved covenant or agreement. These funds are accounted for by OC San as Enterprise Funds as represented in OC San's Annual Comprehensive Financial Report. 3.0 Standard of Prudence: The standard of prudence to be used by OC San internal staff, and any authorized investment advisor(s), shall be as described in Section 53600.3 of the California Government Code as follows: Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and Page 1 familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. 4.0 Investment Objectives: The primary objectives of OC San's investment activities, in priority order, and as described in Section 53600.5 of the California Government Code, shall be: 4.1 Safety: The safety and preservation of principal is the foremost objective of the investment program of OC San. Investments shall be selected in a manner that seeks to ensure the preservation of capital in OC San's overall portfolio. This will be accomplished through a program of diversification, more fully described in Section 13.0, and maturity limitations, more fully described in Section 14.0, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 Liquidity: The investment program will be administered in a manner that will ensure that sufficient funds are available for OC San to meet its reasonably anticipated operating expenditure needs. 4.3 Return on Investments: The OC San investment portfolio will be structured and managed with the objective of achieving a market rate of return throughout budgetary and economic cycles, commensurate with legal, safety and liquidity considerations. 5.0 Delegation of Authority: 5.1 Authority to manage OC San's investment program is derived from the California Government Code Sections 53600 et seq. and Sections 53635 et seq. The Board of Directors hereby delegates management responsibility for OC San's investment program to its Assistant General Manager & Director of Finance and Administrative Services/Treasurer, who shall establish written procedures for the operation of the investment program, consistent with this policy. The Controller/Assistant Treasurer shall be responsible for day-to-day administration, monitoring and the development of written administrative procedures for the operation of the investment program, consistent with this policy. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken by OC San internal staff and shall establish a system of controls to regulate the activities of internal staff and external investment advisors engaged in accordance with Section 5.3. 5.2 The administrative procedures for the operation of OC San's investment program will provide for, but not be limited to, the following: Page 2 5.2.1 Formats for monthly and quarterly reports to the Administration Committee and the Board of Directors. 5.2.2 Compliance with generally accepted accounting principles of the Government Accounting Standards Board. 5.2.3 Establishment of benchmarks for performance measurement. 5.2.4 Establishment of a system of written internal controls. 5.2.5 Establishment of written procedures for competitive bids and offerings of securities that may be purchased or sold by internal OC San staff. 5.2.6 Establishment of a Desk Procedures Manual for treasury operations and management. 5.3 The Board of Directors may, in its discretion, engage the services of one or more registered investment advisors to assist in the management of OC San's investment portfolio in a manner consistent with OC San's objectives. Such external investment advisors, which shall be selected through a competitive process, shall be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such advisors must be registered under the Investment Advisers Act of 1940 or be exempt from such registration. 6.0 Ethics and Conflicts of Interest: Officers and employees of OC San involved in the investment process shall refrain from personal business activities that could conflict with proper execution of OC San's investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions that conduct business within OC San's boundaries and they shall further disclose any large personal financial/investment positions, the performance of which could be related to the performance of positions in OC San's portfolio. 7.0 Authorized Financial Dealers and Institutions: 7.1 For investment transactions conducted by OC San internal staff, the Treasurer will maintain a list of financial institutions authorized to provide investment services to OC San, including "primary" or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital rule) and Federal or State of California chartered banks. No public deposit shall be made except in a qualified public depository as established by State law. Page 3 All financial institutions which desire to become qualified bidders for investment transactions with OC San must supply the following for evaluation by the Treasurer: 7.1.1. Audited financial statements for the institution's three most recent fiscal years. 7.1.2. A statement, in the format prescribed by the Government Finance Officers Association (GFOA), certifying that the institution has reviewed OC San's Investment Policy and that all securities offered to OC San shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. The current statement is presented in Appendix "A." 7.1.3. A statement describing the regulatory status of the dealer and the background and expertise of the dealer's representatives. Selection of financial institutions, broker/dealers and banks authorized to engage in transactions with OC San shall be made through a competitive process. An annual review of the financial condition of qualified institutions will be conducted by the Treasurer. 7.2 Selection of broker/dealers used by external investment advisors retained by OC San, shall be in compliance with contract provisions between OC San and any external investment advisors and shall be in substantially the following form: Use of Securities Brokers: Neither the Investment Advisor nor any parent, subsidiary or related firm shall act as a securities broker with respect to any purchases or sales of securities which may be made on behalf of OC San, provided that this limitation shall not prevent the Investment Advisor from utilizing the services of a securities broker which is a parent, subsidiary or related firm, provided such broker effects transactions on a "cost only" or "nonprofit" basis to itself and provides competitive execution. The Investment Advisor shall provide OC San with a list of suitable independent brokerage firms (including names and addresses) meeting the requirements of Government Code Section 53601.5, and, unless otherwise directed by OC San, the Investment Advisor may utilize the service of any of such independent securities brokerage firms it deems appropriate to the extent that such firms are competitive with respect to price of services and execution. 8.0 Authorized and Suitable Investments: All investments shall be made in accordance with the California Government Code including Sections 16429.1 et seq., 53600 et seq. and 53684, and as described within this Investment Policy. Permitted investments under this policy shall include: Page 4 8.1 Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government, a federal agency, or a US Government -sponsored enterprise pursuant to Section 53601 (f) of the California Government Code. US Treasury securities must make up at least 10% of the portfolio. 8.2 Supranational Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank. Securities must be eligible for purchase in the United States and be U.S. dollar denominated senior unsecured unsubordinated obligations, with a maximum maturity of five years. Securities eligible for purchase under this section must be rated "AX or better by a Nationally Recognized Statistical Rating Organization (NRSRO) and shall not exceed 30% of the total portfolio. 8.3 Mortgage pass -through security, collateralized mortgage obligation, mortgage -backed or other pay -through bond, equipment lease -backed certificate, consumer receivable pass -through certificate, or consumer receivable -backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision may not exceed 20% of the agency's surplus moneys that may be invested pursuant to this section. Purchase of mortgage derivatives, which include interest -only payments (IOs) and principal -only payments (POs); inverse floaters, and RE-REMICs (Real Estate Mortgage Investment Conduits), is hereby prohibited. 8.4 Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided by an NRSRO and issued by a domestic corporation organized and operating in the United States with assets in excess of $500 million and having a rating of "A" or better on its long-term debt as provided by an NRSRO. Purchases of eligible commercial paper may not exceed 270 days to maturity from the date of purchase. Purchases of commercial paper shall not exceed 40% of the market value of the portfolio. No more than 5% of the market value of the portfolio, or 10% of the issuer's outstanding paper, may be invested in commercial paper issued by any one eligible corporation. 8.5 Banker's acceptances issued by institutions, the short-term obligations of which are rated of the highest ranking or the highest letter and number rating as provided by an NRSRO provided that: (a) the acceptance is eligible for purchase by the Federal Reserve System; (b) the maturity does not exceed 180 days; (c) no more than 40% of the total portfolio may be invested in banker's acceptances; and (d) no more than 5% of the total portfolio may be invested in the banker's acceptances of any one commercial bank. Page 5 8.6 Medium term (or corporate) notes of a maximum of five years maturity issued by corporations organized and operating within the United States, or issued by depository institutions licensed by the United States, or any state, and operating within the United States with assets in excess of $500 million, and which is rated in a rating category of "A" or better on its long-term debt as provided by an NRSRO. If, after purchase, the rating of an eligible note falls below the minimum rating category stipulated above, the external investment advisor shall notify OC San of the downgrade and shall present an analysis and recommendations as to the disposition of the note consistent with the investment objectives of this Investment Policy. No more than 30% of the portfolio may be invested in medium term notes. 8.7 Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by California Government Code Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. 8.8 Shares of mutual funds investing in securities permitted under this policy and under Section 53601 (1) of the California Government Code. Such funds must either: (1) attain the highest ranking, or the highest letter and numerical rating, provided by not less than two of the three largest nationally recognized rating services; or (2) have an Investment Advisor registered with the Securities and Exchange Commission with not less than five years of experience investing in the securities and obligations authorized under this policy and under California Government Code Section 53601 and with assets under management in excess of $500 million. The purchase price of shares of beneficial interest purchased pursuant to this policy and the California Government Code may not include any commission that the companies may charge and shall not exceed 20% of OC San's surplus money that may be invested pursuant to this section. No more than 10% of OC San's surplus funds may be invested in shares of beneficial interest of any one mutual fund pursuant to this section. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation. 8.9 Certificates of deposit: 8.9.1 Secured (collateralized) time deposits issued by a nationally or state -chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code, and having a net operating profit in the two most recently completed fiscal years. Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500 et seq., and Page 6 Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law, Section 16600 et seq., of the California Government Code. 8.9.2 Negotiable certificates of deposit (NCDs) issued by a nationally or state -chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code; and which shall have a rating of "A" or better on its long-term debt as provided by a NRSRO; or which shall have the highest letter and number rating for deposits as provided by a NRSRO; or as otherwise approved by the Board of Directors. No more than 30% of the portfolio may be invested in securities pursuant to this section. 8.9.3 To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured individual loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisorial agency of its record of meeting the credit needs of California's communities, including low and moderate income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. 8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United States. Such securities must be rated "A" or higher by a NRSRO; or as otherwise approved by the Board of Directors. 8.11 The State of California Local Agency Investment Fund (LAIF). LAIF is an investment alternative for California's local governments and special districts managed by the State Treasurer's Office. LAIF is more fully described in the Glossary (See Appendix "C"). OC San shall use LAIF as a short-term cash management facility. Investment of OC San funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this policy. 8.12 The Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP). The OCCIP is a money market investment pool managed by the Orange County Treasurer's Office. OCCIP is more fully described in the Glossary (See Appendix "C"). OC San has no funds invested in OCCIP at this time. Investment of OC San funds in OCCIP would be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this policy. 8.13 Repurchase agreements provided that: 8.13.1 All repurchase agreements shall be collateralized with securities eligible for purchase under this policy. In order to anticipate market changes and to provide a level of security for all repurchase agreement transactions, collateralization shall be maintained at a level of at least 102% of the market Page 7 value of the repurchase agreements and shall be adjusted no less than weekly. 8.13.2 All repurchase agreements must be the subject of a Master Repurchase Agreement between OC San and the provider of the repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by the Securities Industry and Financial Markets Association. 8.14 Reverse repurchase agreements provided that: 8.14.1 No more than 5% of OC San's portfolio shall be invested in reverse repurchase agreements, and there shall be no long-term reverse repurchase agreements unless otherwise authorized by the Board of D i recto rs. 8.14.2 The maximum maturity of reverse repurchase agreements shall be 90 days. 8.14.3 Reverse repurchase agreements shall mature on the exact date of a known cash flow which will be unconditionally available to repay the maturing reverse repurchase agreement. 8.14.4 Proceeds of reverse repurchase agreements shall be used solely to supplement portfolio income or to provide portfolio liquidity and shall not be used to speculate on market movements. 8.14.5 All reverse repurchase agreements must be the subject of a Master Repurchase Agreement between OC San and the provider of the reverse repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by the Securities Industry and Financial Markets Association. 8.15 Public Bank Obligations of a maximum of five years maturity which includes commercial paper, debt securities, or other obligations of a public bank, a public bank as defined in California Government Code Section 57600-57607. 8.16 Sales of OC San -owned securities in the secondary market may incur losses in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal, or when trading for securities that result in an expected net economic gain to OC San. 8.17 If securities owned by OC San are downgraded below the quality required by this Investment Policy, it shall be OC San's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored 'm and reported quarterly to the OC San General Manager, the Administration Committee and Board of Directors. 8.18 OC San is authorized to invest in securities issued by or backed by the United States Government that could result in zero or negative interest accrual if held to maturity. 9.0 Review of Investment Portfolio: The securities held by OC San must be in compliance with Section 8.0 "Authorized and Suitable Investments" at time of purchase. If at a later date, a security is no longer in compliance with Section 8.0, the Treasurer shall report the non -compliant security to the Administration Committee and the Board of Directors and shall include a disclosure in the quarterly Treasurer's Report if the security is held at the date the report is prepared. 10.0 Investment Pools/Mutual Funds: A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. A questionnaire shall be developed that will provide the following information: 10.1 A description of eligible investment securities, and a written statement of investment policy and objectives. 10.2 A description of interest calculations and how they are distributed, and how gains and losses are treated. 10.3 A description of how the securities are safeguarded (including the settlement processes) and how often the securities are priced and the program audited. 10.4 A description of who may invest in the program, how often and what size deposits and withdrawals are allowed. 10.5 A schedule for receiving statements and portfolio listings. 10.6 A description of the utilization and level of reserves, retained earnings or other collateral and how they are used by the fund. 10.7 A fee schedule, and when and how is it assessed. 10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will accept such proceeds. 11.0 Collateralization: Generally, the value to secure deposits under this policy shall comply with Section 53652 of the California Government Code. Collateral ization will be required for secured time deposits, as more fully described in Section 8.9.1; and repurchase agreements, as more fully described in Section 8.13.1. Collateral will always be held by an independent third - Page 9 party, as more fully described in Section 12.0. The right of collateral substitution is granted. Under provisions of the California Government Code, California banks and savings and loans associations are required to secure OC San's deposits by pledging government securities with a value of 110% of principal and accrued interest. State law also allows financial institutions to secure OC San's deposits by pledging first trust deed mortgage notes having a value of 150% of OC San's total deposits. 12.0 Safekeeping and Custody: All securities transactions, including collateral for repurchase agreements, entered into by, or on behalf of OC San, shall be conducted on a delivery -versus -payment (DVP) basis. Securities will be held by OC San's third -party custodian bank, which shall be selected through a competitive process, or that agent's representative, or in the agent's account at the Federal Reserve Bank, or within clearing corporations in the U.S, and evidenced by book entry statements. Third -party safekeeping arrangements will be approved by the Treasurer and will be corroborated by a written custodial agreement. 13.0 Diversification: OC San will diversify its investments by security type, issuer and financial institution in accordance with the following: 13.1 There is no limit on investment in securities issued by or guaranteed by the full faith and credit of the U.S. government. 13.2 No more than 20% of the portfolio may be invested in securities of a single agency of the U.S. government, which does not provide the full faith and credit of the U.S. government. 13.3 No more than 5% of the portfolio may be invested in securities of any one issuer, other than Supranationals, the U.S. government or its agencies. Investment in mutual funds is not governed by this Section 13.3. See Section 13.8 for conditions of purchase of mutual funds. 13.4 No individual holding shall constitute more than 5% of the total debt outstanding of any issuer. 13.5 No more than 40% of the portfolio may be invested in banker's acceptances. 13.6 No more than 40% of the portfolio may be invested in commercial paper. 13.7 No more than 30% of the portfolio may be invested in medium -term (corporate) notes. 13.8 No more than 20% of the portfolio may be invested in mutual funds. No more than 10% of OC San's portfolio may be invested in shares of beneficial interest of any one mutual fund. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation. Page 10 13.9 No more than 30% of the portfolio may be invested in negotiable certificates of deposit. 13.10 No more than 10% of the portfolio may be invested in eligible municipal bonds. 13.11 No more than 20% of the Long Term Operating Monies portfolio may be invested in a combination of mortgage -backed securities, CMOs and asset - backed securities. 13.12 No more than the statutory maximum may be invested in LAIF. 13.13 No more than 15% of the portfolio may be invested in the Orange County Investment Pool. 13.14 No more than 20% of the portfolio may be invested in repurchase agreements. 13.15 No more than 5% of the portfolio may be invested in reverse repurchase agreements. 14.0 Maximum Maturities: To the extent possible, OC San will attempt to match its investments with reasonably anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall designate, from time -to -time, the amounts to be allocated to the investment portfolio. OC San monies invested in accordance with this policy are divided into two categories: 14.1 Liquid Operating Monies. Funds needed for current operating and capital expenditures are known as Liquid Operating Monies. 14.1.1 The maximum final stated maturity of individual securities in the Liquid Operating Monies account portfolio shall be one year from the date of settlement. 14.1.2 The average duration of the Liquid Operating Monies account portfolio shall be recommended by the Treasurer based on OC San's cash flow requirements but may never exceed 180 days. 14.2 Long Term Operating Monies. Funds needed for longer term purposes are known as the Long Term Operating Monies. 14.2.1 The maximum final stated maturity of individual securities in the Long Term Operating Monies account portfolio shall be five years from the date of settlement. Page 11 14.2.2 The duration of the Long Term Operating Monies account portfolio shall be recommended by the Treasurer based on OC San's five- year cash flow forecast but may never exceed 60 months. 14.2.3 The duration of the Long Term Operating Monies account portfolio shall never exceed 120% of the duration as established in accordance with Section 14.2.2. 14.2.4 The duration of the Long Term Operating Monies account portfolio shall never be less than 80% of the duration as established in accordance with Section 14.2.2. 15.0 Internal Control: The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 16.0 Performance Objectives and Benchmarks: 16.1 Overall objective. The investment portfolio of OC San shall be designed with the overall objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and reasonably anticipated cash flow needs. 16.2 The Liquid Operating Monies. The investment performance objective for the Liquid Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index approved by the Administration Committee and by the Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OC SAN 22-XX (see Appendix "B"). 16.3 The Long Term Operating Monies. The investment performance objective for the Long Term Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index selected by the Administration Committee and approved by the Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OC SAN 22-XX (See Appendix "B"). 17.0 Reporting: 17.1 Monthly transaction reports in accordance with California Government Code Section 53607 shall be submitted by the Treasurer to the Board of Directors. 17.2 Quarterly investment reports will be submitted by the Treasurer to the Administration Committee which shall forward the reports to the Board of Directors. The quarterly reports shall provide clear and concise status information on OC San's portfolios at the end of each reporting period, Page 12 including performance measures using the benchmarks described in Section 16.0 of this Investment Policy. These reports shall contain listings of individual securities held at the end of each reporting period, and shall disclose, at a minimum, the following information about the risk characteristics of OC San's portfolio: 17.2.1 Cost and accurate and complete market value of the portfolio. 17.2.2 Modified duration of the portfolio compared to Benchmark. 17.2.3 Dollar change in value of the portfolio for a 1 % change in interest rates. 17.2.4 Percent of portfolio invested in reverse repurchase agreements, and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which are available to repay them at maturity. 17.2.5 For the Liquid Operating Monies account only, the percent of portfolio maturing within 90 days. 17.2.6 Average portfolio credit quality. 17.2.7 Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities. 17.2.8 State that all investments are in compliance with this policy and the California Government Code or provide a listing of any transactions or holdings which do not comply with this policy or with the California Government Code. 17.2.9 Time -weighted total rate of return for the portfolio for the prior three months, six months, nine months, twelve months and since inception compared to the Benchmark returns for the same periods. 17.2.10 State that sufficient funds are available for OC San to meet its operating expenditure requirements for the next six months, or if not, state the reasons for the shortfall. 17.3 OC San's Treasurer shall meet quarterly with the Administration Committee to review investment performance, proposed strategies and compliance with this Investment Policy. External investment advisors may be required to attend said meetings at the discretion of the Chairperson of the Administration Committee. 18.0 Investment Policy Adoption and Revision: 18.1 The Investment Policy of OC San shall be adopted by resolution of the Board of Directors. The Investment Policy shall be reviewed on an annual Page 13 basis in accordance with California Government Code Section 53646, by the Administration Committee, which shall recommend revisions, as appropriate, to the Board of Directors. Any modifications made thereto shall be approved by the Board of Directors. 18.2 The Administration Committee shall serve as the oversight committee for OC San's Investment program and shall adopt guidelines for the ongoing review of duration, quality and liquidity of OC San's portfolio. Page 14 RESOLUTION NO. OC SAN 22-36 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT, AUTHORIZING THE ORANGE COUNTY SANITATION DISTRICT'S TREASURER TO INVEST AND/OR REINVEST THE ORANGE COUNTY SANITATION DISTRICT'S FUNDS, ADOPTING THE ORANGE COUNTY SANITATION DISTRICT'S INVESTMENT POLICY STATEMENT AND PERFORMANCE BENCHMARKS, AND REPEALING RESOLUTION NO. OC SAN 21-22 WHEREAS, on December 15, 2021, the Board of Directors adopted Resolution No. OC SAN 21-22, readopting the Orange County Sanitation District's Investment Policy Statement, and establishing specific performance benchmarks and objectives, together with a schedule of frequency of investment performance reports; and WHEREAS, pursuant to California Government Code Section 53607, the Board of Directors may delegate authority to invest and/or reinvest the Orange County Sanitation District's funds to the Treasurer for a one-year period; and WHEREAS, pursuant to California Government Code Section 53646, the Orange County Sanitation District is required to review its Investment Policy annually and readopt its Policy at a public meeting, which Policy will establish specific performance benchmarks and objectives, and specific monitoring and reports. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That the authority of the Board of Directors to invest or reinvest surplus funds, or to sell or exchange securities so purchased, or to deposit for safekeeping the funds and investments of the Orange County Sanitation District with depositories, as provided for in California Government Code Sections 53608 and 53630, is hereby delegated to the Orange County Sanitation District's Treasurer for a one-year period, January 1, 2023 through December 31, 2023, as authorized by California Government Code Section 53607. OC SAN 22-36-1 Section 2: That the Board of Directors hereby adopts the Investment Policy Statement of the Orange County Sanitation District. Section 3: That the Board of Directors hereby adopts the following specific performance benchmarks for their two investment funds in accordance with Section 16.0 of the Orange County Sanitation District's Investment Policy: LIQUID OPERATING MONIES: The Short -Term Operating Fund will be compared to the three-month Bank of America Merrill Lynch T-Bill Index and the Callan Money Market Funds. LONG-TERM OPERATING MONIES: The Long -Term Operating Fund will be compared to the Bank of America Merrill Lynch Corporate and Government One - to -Five Year Maturity Index and to the Callan Short Term Fixed Income Group. Section 4: That the Board of Directors hereby adopts a performance monitoring and reporting schedule, as required by Section 17.0 of the Orange County Sanitation District's Investment Policy. Section 5: That Resolution No. OC SAN 21-22 is hereby repealed. OC SAN 22-36-2 PASSED AND ADOPTED at regular meeting of the Board of Directors, Orange County Sanitation District held December 15, 2022. Chad P. Wanke Board Chairman /_raIM9 Kelly A. Lore, MMC Clerk of the Board OC SAN 22-36-3 STATE OF CALIFORNIA ss COUNTY OF ORANGE I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 22-36 was passed and adopted at a regular meeting of said Board on the 15th day of December 2022, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 15th day of December 2022. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN 22-36-4 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2585 Agenda Date: 12/14/2022 Agenda Item No: 3. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: MOVE MANAGEMENT CONSULTING SERVICES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Professional Consultant Services Agreement to CBRE, Inc. to provide Move Management Consulting Services, Specification No. CS-2022-1336, for a total amount not to exceed $108,390-1 and B. Approve a contingency of $10,839 (10%). BACKGROUND Orange County Sanitation District's (OC San) Headquarters Complex at Plant No. 1, Project No. P1- 128A, will construct a new Headquarters Building on the north side of Ellis Avenue to house administrative, technical, and engineering staff. The Headquarters Building will also include surface parking and a pedestrian/utility bridge over Ellis Avenue to Plant No. 1. OC San will need to relocate staff to the new Headquarters Building upon completion. The move will include relocating approximately 300 employees from seven different locations to the new Headquarters Building. 0=111A%1L11&3IF_1z117_10IR • Provide a safe and collegial workplace • Ensure the public's money is wisely spent • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM OC San staff has limited experience moving staff of this magnitude. An experienced move management company is needed to develop a comprehensive relocation plan to undertake this transition in a cost-effective and efficient fashion. In addition, if this move management were to be done in-house with existing staff, it will cause a significant strain and limit resources on other projects and efforts currently underway. Orange County Sanitation District Page 1 of 4 Printed on 12/6/2022 powered by LegistarTIM File #: 2022-2585 Agenda Date: 12/14/2022 Agenda Item No: 3. PROPOSED SOLUTION Approve the Professional Consultant Services Agreement with CBRE, Inc. to provide move management consultant services. A professional move management company will create a more seamless relocation plan to limit downtime and cost. TIMING CONCERNS In order to relocate 300 employees into the new Headquarters Building, move management services should begin no later than the beginning of 2023. This time frame will allow OC San to initiate the contract, create the plan, procure movers, and prepare staff administratively and physically to relocate employees starting December 2023, when the new Headquarters Building is complete. RAMIFICATIONS OF NOT TAKING ACTION If a move management consultant is not selected, it will affect the implementation of staff relocation and be less efficient and more disruptive to on -going initiatives. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The goal of the agreement is for the Consultant to provide the planning and move management which will result in a seamless and smooth transition for OC San staff. The Consultant will be responsible for assisting with all elements of the move into the new Headquarters Building, including the following: • Pre -move coordination • Development and maintenance of a moving schedule • Development of the moving vendor scope of work • Assistance reviewing moving service bids • Oversight of all move logistics Consultant Selection OC San requested and advertised for proposals for Move Management Consultant Services on July 26, 2022. The following evaluation criteria were described in the Request for Proposed (RFP) and used to determine the most qualified Consultant. Orange County Sanitation District Page 2 of 4 Printed on 12/6/2022 powered by LegistarTM File #: 2022-2585 Agenda Date: 12/14/2022 Agenda Item No: 3. CRITERION WEIGHT Qualifications & Experience of Firm 25% Proposed Staffing & Project Organization 25% Work Plan 30% Cost 20% Three proposals were received on August 9, 2022 and evaluated in accordance with the evaluation process set forth in OC San's Purchasing Ordinance by a pre -selected Evaluation Team consisting of the following OC San staff: Administration Manager, Principal Staff Analyst, Senior Engineer, Safety and Health Supervisor, and Information Technology Supervisor. The Evaluation Team also including one non -voting representative from the Purchasing Division. The Evaluation Team scored the proposals on the established criterion as summarized below: Rank Proposer Qualifications Proposed Work Plan Subtotal of Firm (Max Staffing and (Max 30%) Score (Max 25%) Project 80%) Organization (Max 25%) 1 CBRE, Inc. 24% 21 % 29% 74% 2 CBSI 19% 18% 18% 55% 3 E-Logic, Inc. 3% 3% 3% 9% All proposals were accompanied by a sealed cost proposal. Only the cost proposals for the two highest ranked firms were opened. Only the cost proposal of the top highest ranked firm was negotiated. Rank Proposer ORIGINAL COST BAFO (if applicable) 1 CBRE, Inc. $110,750 $108,390 2 CBSI $114,840 N/A Based on the scoring shown below, CBRE, Inc. was selected as the most qualified Consultant. Rank Proposer Subtotal w/o Cost (Max Total Weighted Presentation 20%) Score (Max (Max 80%) 100%) 1 CBRE, Inc. 74% 20% 94% 2 ICBSI 55% ji9% 74% CEQA N/A Orange County Sanitation District Page 3 of 4 Printed on 12/6/2022 powered by LegistarTM File #: 2022-2585 FINANCIAL CONSIDERATIONS Agenda Date: 12/14/2022 Agenda Item No: 3. This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted in the FY 2022-23 Budget - General Manager's Department. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Professional Consultant Services Agreement Orange County Sanitation District Page 4 of 4 Printed on 12/6/2022 powered by LegistarTM PROFESSIONAL CONSULTANT SERVICES AGREEMENT MOVE MANAGEMENT CONSULTING SERVICES Specification No. CS-2022-1336 This PROFESSIONAL CONSULTANT SERVICES AGREEMENT (hereinafter referred to as "Agreement") is made and entered into as of the date fully executed below, by and between Orange County Sanitation District (hereinafter referred to as "OC San") and CBRE, Inc. (hereinafter referred to as "Consultant"), and collectively referred to herein as the "Parties." RECITALS WHEREAS, OC San desires to obtain move management consulting services as described in Exhibit "A" attached hereto and incorporated herein by this reference ("Services"); and WHEREAS, Consultant is qualified to provide the Services by virtue of experience, training, and expertise; and WHEREAS, OC San desires to engage Consultant to render the Services as provided herein; and WHEREAS, OC San selected Consultant to provide the Services in accordance with Ordinance No. OC SAN-56; and WHEREAS, on December 14, 2022, OC San's Administration Committee, by minute order, authorized execution of this Agreement. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits specified below, the Parties agree as follows: General. 1.1 This Agreement and all exhibits hereto are made by OC San and the Consultant. 1.2 The following exhibits, in order of precedence, are incorporated by reference and made part of this Agreement. Exhibit "A" — Scope of Work Exhibit "B" — Proposal and Cost Proposal Exhibit "C" — Determined Insurance Requirement Form Exhibit "D" — Contractor Safety Standards Exhibit "E" — Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions in the Agreement shall control and thereafter the provisions in the document highest in precedence shall be controlling. 1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses, or actions incurred or undertaken by Consultant as a result of work performed in anticipation of purchases of the Services by OC San. 1.5 Work Hours: The work required under the Agreement may include normal business hours, evenings, and weekends. Professional Consultant Services Agreement 1 of 14 Specification No. CS-2022-1336 Revision 022822 1.6 Meetings with OC San staff: Meetings shall be scheduled Monday through Thursday, between the hours of 7:00 a.m. and 5:00 p.m., and Friday, between the hours of 7:00 a.m. and 3:30 p.m. OC San will not pay for travel time. 1.7 Days: Shall mean calendar days, unless otherwise noted. 1.8 OC San holidays (non -working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.9 The provisions of this Agreement may be amended or waived only by an amendment executed by authorized representatives of both Parties. 1.10 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any paragraph or provision hereof. 2. Scope of Work. 2.1 Consultant shall provide the Services identified in Exhibit "A" in a competent, professional, and satisfactory manner in accordance with generally accepted industry and professional standards, including fiduciary standards, ethical practices, and standards of care and competence for its trade/profession. 2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of Work at any time. All modifications must be made by an amendment signed by both Parties. In the event that OC San materially modifies the Scope of Work, resulting in a material increase to the cost of performance of the Services and/or the Project Schedule, then the Parties shall enter into an amendment to the Agreement to provide for additional Consultant compensation and/or an extension of the Project Schedule for performance of the Services. 2.3 Familiarity with Work. By executing this Agreement, Consultant warrants that: (a) it has investigated the work to be performed; and (b) it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown condition materially differing from those inherent in the work or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Consultant's risk, until written instructions are received from OC San. 2.4 Performance. Time is of the essence in the performance of the provisions hereof. 3. Agreement Term. 3.1 The Services shall be completed within five hundred sixty (560) calendar days from the effective date of the Notice to Proceed. 3.2 Extensions. The term of this Agreement may be extended only by an amendment signed by both Parties. 4. Compensation. 4.1 As compensation for the Services provided under this Agreement, OC San shall pay Consultant a total amount not to exceed One Hundred Eight Thousand, Three Hundred Ninety Dollars ($108,390.00). Professional Consultant Services Agreement 2 of 14 Specification No. CS-2022-1336 Revision 022822 4.2 Consultant shall provide OC San with all required premiums and/or overtime work at no charge beyond the amount specified above. Such included premiums and/or overtime work do not apply to any increased Scope of Work or extended Project Schedule pursuant to Section 2.2. 5. Payments and Invoicing. 5.1 OC San shall pay itemized invoices for Milestones completed in accordance with Exhibit "A" at the prices identified in Exhibit "B" thirty (30) days from receipt of the invoice and after approval by OC San's Project Manager or designee. OC San shall be the determining party, in its sole discretion, as to whether the Services have been satisfactorily completed. 5.2 Consultant shall submit its invoices to OC San Accounts Payable by electronic mail to APStaff(a-),OCSan.gov. In the subject line include "INVOICE" and the Purchase Order Number. 6. California Department of Industrial Relations Registration and Record of Wages. 6.1 To the extent Consultant's employees and/or its subconsultants perform work related to this Agreement for which Prevailing Wage Determinations have been issued by the California Department of Industrial Relations (DIR) as more specifically defined under Labor Code section 1720 et seq., prevailing wages are required to be paid for applicable work under this Agreement. It is Consultant's responsibility to interpret and implement any prevailing wage requirements and Consultant agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws. 6.2 Consultant and its subconsultants shall comply with the registration requirements of Labor Code section 1725.5. Pursuant to Labor Code section 1771.4(a)(1), the work is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). 6.3 Pursuant to Labor Code section 1773.2, a copy of the prevailing rate of per diem wages is available upon request at OC San's principal office. The prevailing rate of per diem wages may also be found at the DIR website for prevailing wage determinations at http://www.dir.ca.gov/DLSR/PWD. 6.4 Consultant and its subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations section 16461(e). Pursuant to Labor Code sections 1773.2 and 1771.4(a)(2), Consultant shall post a copy of the prevailing rate of per diem wages at the job site. 6.5 Consultant and its subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code section 1776. Consultant and its subconsultants shall submit payroll records to the Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). Pursuant to Labor Code section 1776, the Consultant and its subconsultants shall furnish a copy of all certified payroll records to OC San and/or the general public upon request, provided the public request is made through OC San, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations. Pursuant to Labor Code section 1776(h), penalties for non-compliance with a request for payroll records may be deducted from progress payments. Professional Consultant Services Agreement 3 of 14 Specification No. CS-2022-1336 Revision 022822 6.5.1 As a condition to receiving payments, Consultant agrees to present to OC San, along with any request for payment, all applicable and necessary certified payrolls and other required documents for the period covering such payment request. Pursuant to Title 8, California Code of Regulations section 16463, OC San shall withhold any portion of a payment, up to and including the entire payment amount, until certified payroll forms and any other required documents are properly submitted. In the event certified payroll forms do not comply with the requirements of Labor Code section 1776, OC San may continue to withhold sufficient funds to cover estimated wages and penalties under the Agreement. 6.6 The Consultant and its subconsultants shall comply with Labor Code section 1774 and section 1775. Pursuant to Labor Code section 1775, the Consultant and any of its subconsultants shall forfeit to OC San a penalty of not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any work. 6.6.1 In addition to the penalty and pursuant to Labor Code section 1775, the difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the Consultant or its subconsultant. 6.7 Consultant and its subconsultants shall comply with Labor Code sections 1810 through 1815. Consultant and its subconsultants shall restrict working hours to eight (8) hours per day and forty (40) hours per week, except that work performed in excess of those limits shall be permitted upon compensation for all excess hours worked at not less than one and one-half (1.5) times the basic rate of pay, as provided in Labor Code section 1815. The Consultant shall forfeit, as a penalty to OC San, twenty-five dollars ($25) per worker per calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of Labor Code sections 1810 through 1815. 6.8 Consultant and its subconsultants shall comply with Labor Code sections 1777.5, 1777.6, and 1777.7 concerning the employment of apprentices by Consultant or any subconsultant. 6.9 Consultant shall include, at a minimum, a copy of the following provisions in any contract it enters into with any subconsultant: Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860, and 1861. 6.10 Pursuant to Labor Code sections 1860 and 3700, the Consultant and its subconsultants will be required to secure the payment of compensation to employees. Pursuant to Labor Code section 1861, Consultant, by accepting this Agreement, certifies that: "I am aware of the provisions of section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." Professional Consultant Services Agreement 4 of 14 Specification No. CS-2022-1336 Revision 022822 Consultant shall ensure that all its contracts with its subconsultants provide the provision above. 7. Key Personnel. Personnel, as provided in Exhibit "B," are considered "key" to the work under this Agreement and will be available for the term of the Agreement. No person designated as key under this Agreement shall be removed or replaced without prior written consent of OC San. If OC San asks Consultant to remove a person designated as key under this Agreement, Consultant agrees to do so immediately regardless of the reason, or the lack of reason, for OC San's request. Consultant shall assign only competent personnel to perform Services under this Agreement. 8. Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement specifically and uniquely for OC San, but expressly excluding any Consultant Intellectual Capital (hereinafter defined), shall be the property of OC San and shall be promptly delivered to OC San upon request of OC San's Project Manager or designee or upon the termination of this Agreement and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by OC San of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at OC San's sole risk and without liability to Consultant. Consultant shall ensure that all its contracts with its subconsultants provide for assignment to OC San of any documents or materials prepared by them. 9. Ownership of Intellectual Property. 9.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics, prototypes, models, inventions, and all other information and items made specifically and uniquely for OC San during the course of this Agreement and arising from the Services (hereinafter referred to as "New Developments") shall be and are assigned to OC San as its sole and exclusive property. 9.2 Consultant agrees to promptly disclose to OC San all such New Developments. Upon OC San's request, Consultant agrees to assist OC San, at OC San's expense, to obtain patents or copyrights for such New Developments, including the disclosure of all pertinent information and data with respect thereto, the execution of all applications, specifications, assignments, and all other instruments and papers which OC San shall deem necessary to apply for and to assign or convey to OC San, its successors and assigns, the sole and exclusive right, title, and interest in such New Developments. Consultant agrees to obtain or has obtained written assurances from its employees and contract personnel of their agreement to the terms hereof regarding New Developments and confidential information. 9.3 Consultant warrants that Consultant will have good title to any New Developments and the right to assign New Developments to OC San free of any proprietary rights of any other party or any other encumbrance whatever. 9.4 The originals of all computations, drawings, designs, graphics, studies, reports, manuals, photographs, videotapes, data, computer files, and other documents prepared or caused to be prepared specifically and uniquely for OC San by Consultant or its subconsultants in connection with the Services hereunder shall be delivered to Professional Consultant Services Agreement 5 of 14 Specification No. CS-2022-1336 Revision 022822 and shall become the exclusive property of OC San. OC San may utilize such documents, at its own risk, for OC San's applications on other projects or extensions of this project. 9.5 Consultant shall not receive any right, claim, title or interest in or to any proprietary products or intellectual property of OC San. Notwithstanding any provision hereof to the contrary, all methodologies, systems, procedures, management tools, software, ideas, inventions, know-how and other intellectual capital that Consultant has developed, created or acquired prior to performing Services under this Agreement, or develops, creates or acquires during the Agreement Term or thereafter ("Consultant Intellectual Capital") are and shall remain the sole and exclusive proprietary property of Consultant, and OC San shall not have any right, claim, title or interest in or to any of Consultant Intellectual Capital. 10. Right to Review Services, Facilities, and Records. 10.1 OC San reserves the right to review any portion of the Services performed by Consultant under this Agreement and Consultant agrees to cooperate to the fullest extent possible in such endeavor. 10.2 Consultant shall furnish to OC San such reports, statistical data, and other information pertaining to Consultant's Services as shall be reasonably required by OC San to carry out its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bonds and other obligations. 10.3 The right of OC San to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant shall not relieve Consultant of any obligation set forth herein. 11. Conflict of Interest and Reporting. 11.1 Consultant shall, at all times, avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement. 11.2 Consultant affirms that, to the best of its knowledge, there exists no actual or potential conflict between Consultant's families, business, or financial interest and the Services under this Agreement and in the event of change in either its private interests or Services under this Agreement, it shall raise with OC San any question regarding possible conflict of interest which may arise as a result of such change. 12. Damage to OC San's Property. Any of OC San's property damaged by Consultant, any subconsultant, subcontractor, or by the personnel of either will be subject to repair or replacement by Consultant at no cost to OC San. 13. Freight (F.O.B. Destination). Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement. 14. Audit Rights. Consultant agrees that, during the term of this Agreement and for a period of three (3) years after its expiration or termination, OC San shall have access to and the right to examine any directly pertinent books, documents, and records of Consultant relating to the invoices submitted by Consultant pursuant to this Agreement. Professional Consultant Services Agreement 6 of 14 Specification No. CS-2022-1336 Revision 022822 15. Contractor Safety Standards and Human Resources Policies. OC San requires Consultant, its subconsultants, and its subcontractors to follow and ensure their employees follow all Federal, State, and local regulations as well as Contractor Safety Standards while working at OC San locations. If, during the course of the Agreement, it is discovered that Contractor Safety Standards do not comply with Federal, State, or local regulations, the Consultant is required to follow the most stringent regulatory requirement at no additional cost to OC San. Consultant, its subconsultants, and all of their employees shall adhere to all applicable Contractor Safety Standards in Exhibit "D" and the Human Resources Policies in Exhibit "E." 16. Insurance. Consultant and all its subconsultants shall purchase and maintain, throughout the term of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Exhibit "C" — Determined Insurance Requirement Form. Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OC San, nor shall Consultant allow any subconsultant to commence service pursuant to a subcontract until all insurance required of the subconsultant has been obtained. Failure to obtain and maintain the required insurance coverage shall result in termination of this Agreement. 17. Indemnification and Hold Harmless Provision. 17.1 To the extent of Consultant's fault, Consultant shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or may be caused by Consultant's Services under this Agreement, or by its subconsultant(s), or by anyone directly or indirectly employed by Consultant, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the negligence of or willful misconduct of the other Party, each Party (as the case may be, the "Indemnifying Party") shall indemnify, protect, defend, and hold harmless the other Party, and its officials, officers, agents, and employees from and against any and all third party claims, liabilities, damages, or expenses of any nature, including attorneys' fees: (a) on account of any goods and services provided under this Agreement that result in injury to or death of any person, or damage to property, or interference with the use of property to the extent arising out of or in connection with the negligence or willful misconduct of the Indemnifying Party. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Consultant or anyone employed by or working under Consultant. To the maximum extent permitted by law, Consultant's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Consultant agrees to provide this defense immediately upon written notice from OC San, and with well qualified, adequately insured, and experienced legal counsel acceptable to OC San. This section shall survive the expiration or early termination of the Agreement. 17.2 Notwithstanding any provision herein to the contrary: 17.2.1 Neither Party shall be liable for any lost or prospective profits or any other indirect, consequential, special, incidental, punitive, or other exemplary losses or damages, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, regardless of the foreseeability or the cause thereof. Professional Consultant Services Agreement 7 of 14 Specification No. CS-2022-1336 Revision 022822 17.2.2 Consultant's maximum aggregate liability under or in connection with this Agreement, regardless of the form of action, shall in no event exceed three (3) times the total compensation (excluding any reimbursed amounts) received by Consultant under this Agreement. Consultant shall not be liable for any claim based upon or resulting from any erroneous or incomplete data provided by OC San or any third party or otherwise contained in OC San's databases. 18. Independent Contractor. 18.1 The relationship between the Parties hereto is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 18.2 During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act as OC San's officers, employees, or agents. OC San assumes no liability for Consultant's action and performance nor assumes responsibility for taxes, funds, payments, or other commitments, expressed or implied, by or for Consultant. 18.3 Consultant shall not be considered an agent of OC San for any purpose whatsoever nor shall Consultant have the right to, and shall not, commit OC San to any agreement, contract, or undertaking. Consultant shall not use OC San's name in its promotional material or for any advertising or publicity purposes without prior expressed written consent. 18.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on OC San's payroll as regular employees including, without limitation, worker's compensation, disability insurance, vacation, or holiday or sick pay. Consultant shall be responsible for providing, at Consultant's expense, disability, worker's compensation, and other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder. 18.5 Consultant shall be obligated to pay any and all applicable Federal, State, and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OC San for any claims, losses, costs, fees, liabilities, damages, or penalties suffered by OC San arising out of Consultant's breach of this provision. 18.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OC San's payroll as regular employees. Consultant shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OC San misclassified Consultant for tax purposes. 19. Subcontracting and Assignment. Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OC San. Any such attempted delegation or assignment shall be void. 20. No Solicitation of Employees. 20.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one (1) year immediately following expiration or termination of this Agreement or any extension hereof, call on, solicit, or take away any of the employees whom Consultant became aware of as a result of Consultant's Services to OC San. Professional Consultant Services Agreement 8 of 14 Specification No. CS-2022-1336 Revision 022822 20.2 Consultant acknowledges that OC San's employees are critical to its business and OC San expends significant resources to hire, employ, and train employees. Should Consultant employ or otherwise engage OC San's employees during the term of this Agreement and for a period of one (1) year following expiration or termination of this Agreement, Consultant shall pay OC San fifty percent (50%) of the former employee's most recent annual salary earned at OC San to accurately reflect the reasonable value of OC San's time and costs. This payment is in addition to any other rights and remedies OC San may have at law. 21. Confidentiality and Non -Disclosure. 21.1 Each Party acknowledges that, in performing the Services hereunder, the other Party may have to disclose to the other, orally and in writing, certain confidential information that it considers proprietary and has developed at great expense and effort. 21.2 Except where disclosure is required by law, both Parties agree to maintain in confidence and not disclose to any person, firm, or corporation, without the other Party's prior written consent, any trade secret, confidential information, knowledge, or data relating to the products, process, or operation the other Party. 21.3 Except where disclosure is required by law, both Parties further agree to maintain in confidence and not to disclose to any person, firm, or corporation any data, information, technology, or material developed or obtained by the other Party during the term of this Agreement. 21.4 Both Parties agree as follows: 21.4.1 To use the confidential information only for the purposes described herein; to not reproduce the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others. 21.4.2 To restrict access to the confidential information to its subconsultant or personnel of either Party who (1) have a need to have such access and (2) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement. 21.4.3 To return all confidential information upon termination of this Agreement or upon the other Party's request, whichever occurs first. 21.4.4 To hold in confidence information and materials, if any, developed pursuant to the Services hereunder. 21.4.5 The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential. 22. Non -Liability of OC San Officers and Employees. No officer or employee of OC San shall be personally liable to Consultant, or any successor -in -interest, in the event of any default or breach by OC San or for any amount which may become due to Consultant or to its successor, or for breach of any obligation under the terms of this Agreement. 23. Third -Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC San and Consultant. Professional Consultant Services Agreement 9 of 14 Specification No. CS-2022-1336 Revision 022822 24. Applicable Laws and Regulations. Consultant shall comply with all applicable Federal, State, and local laws, rules, and regulations. Consultant also agrees to indemnify and hold OC San harmless from any and all damages and liabilities assessed against OC San as a result of Consultant's noncompliance therewith. Any provision required by law to be included herein shall be deemed included as a part of this Agreement whether or not specifically included or referenced. 25. Licenses, Permits, Ordinances, and Regulations. Consultant represents and warrants to OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to provide the Services. Any and all fees required by Federal, State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work performed under this Agreement will be paid by Consultant. 26. Regulatory Requirements. Consultant shall perform all work under this Agreement in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and Water Codes Division 2. 27. Environmental Compliance. Consultant shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Consultant, its subconsultants, subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. OC San acknowledges that Consultant is not an environmental expert or consultant in the field of Hazardous Materials (as hereinafter defined). With respect to any Hazardous Materials that may be present below, on, about or otherwise affecting the real property or any property of OC San, Consultant shall not be responsible for detecting, handling, removing, remediating or disposing of such Hazardous Materials, except to the extent of any Hazardous Materials brought onto the property by Consultant ("Consultant Hazardous Materials"). Consultant shall not use Hazardous Materials except in the ordinary course of providing the Services and in compliance with applicable laws. "Hazardous Materials" shall mean any hazardous material or substance which is or becomes defined as a "hazardous waste," "hazardous substance," "hazardous material," pollutant, or contaminant under any applicable law. Consultant shall not be responsible for detecting or remediating (i) any pre-existing conditions at the project site or other property of OC San or (ii) any structural or latent defects or other defects in design or construction of a facility or manufacturing defects in equipment at the property, whether pre-existing or arising during the Agreement Term. 28. Dispute Resolution. 28.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 28.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to Code of Civil Procedure, Part 3, Title 9, sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in Professional Consultant Services Agreement 10 of 14 Specification No. CS-2022-1336 Revision 022822 connection with the arbitration proceeding pursuant to Code of Civil Procedure section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 29. Remedies. In addition to other remedies available in law or equity, if the Consultant fails to make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OC San rejects the goods or Services or revokes acceptance of the goods or Services, OC San may (a) cancel the Agreement; (b) recover whatever amount of the purchase price OC San has paid, and/or (c) "cover" by purchasing, or contracting to purchase, substitute goods or services for those due from Consultant. In the event OC San elects to "cover" as described in (c), OC San shall be entitled to recover from Consultant as damages the difference between the cost of the substitute goods or services and the Agreement price, together with any incidental damages. 30. Force Majeure. Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government, or any other cause beyond its control, but the affected party shall use reasonable efforts to minimize the extent of the delay. Work affected by a force majeure condition may be rescheduled by mutual consent of the Parties. 31. Termination. 31.1 OC San reserves the right to terminate this Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice from OC San. Upon receipt of a termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay Consultant for work performed (cost and fee) through the date of termination. Consultant expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this Agreement and release OC San from any further fee, cost, or claim hereunder by Consultant other than for work performed through the date of termination. 31.2 OC San reserves the right to terminate this Agreement immediately upon OC San's determination that Consultant is not complying with the Scope of Work requirements, if the level of service is inadequate, or for any other default of this Agreement. 31.3 OC San may also immediately terminate this Agreement for default, in whole or in part, by written notice to Consultant: • if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or • if Consultant sells its business; or • if Consultant breaches any of the terms of this Agreement; or • if the total amount of compensation exceeds the amount authorized under this Agreement. 31.4 All OC San's property in the possession or control of Consultant shall be returned by Consultant to OC San on demand or at the expiration or termination of this Agreement, whichever occurs first. Professional Consultant Services Agreement 11 of 14 Specification No. CS-2022-1336 Revision 022822 32. Attorney's Fees. If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which the prevailing party may be entitled. 33. Waiver. The waiver by either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Consultant to which OC San does not object shall not operate as a waiver of OC San's rights to seek remedies available to it for any subsequent breach. 34. Severability. If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection, or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 35. Survival. The provisions of this Agreement dealing with payment, warranty, indemnity, and forum for enforcement shall survive expiration or early termination of this Agreement. 36. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange in the event any action is brought in connection with this Agreement or the performance thereof. 37. Notices. 37.1 All notices under this Agreement must be in writing. Written notice shall be delivered by personal service, by electronic telecommunication, or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand, or request sent. All notices shall be effective when first received at the following addresses: OC San: Jessica Vu Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 JVu(a ocsan.gov Consultant: Eric H. Stang Senior Managing Director CBRE, Inc. 2000 Town Center, Suite 2200 Southfield, MI 48075 Eric. Stanq(a)-CBRE.com 37.2 Each party shall provide the other party written notice of any change in address as soon as practicable. Professional Consultant Services Agreement 12 of 14 Specification No. CS-2022-1336 Revision 022822 38. Read and Understood. By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement. 39. Authority to Execute. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound. 40. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral communications and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. [Intentionally left blank. Signatures follow on the next page.] Professional Consultant Services Agreement 13 of 14 Specification No. CS-2022-1336 Revision 022822 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by their duly authorized representatives. Dated: Dated: Dated: Dated: CMM ORANGE COUNTY SANITATION DISTRICT By: Chad P. Wanke Board Chairman By: Kelly A. Lore Clerk of the Board By: Ruth Zintzun Purchasing & Contracts Manager CBRE, INC. By: Print Name and Title of Officer Professional Consultant Services Agreement 14 of 14 Specification No. CS-2022-1336 Revision 022822 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2651 Agenda Date: 12/14/2022 Agenda Item No: 4. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: MANAGED COPY CENTER SERVICES CHANGE ORDER GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Change Order to add $25,000 to Purchase Order 107521-OB for ARC Document Solutions to provide copy center services in accordance with the scope of work and terms and conditions of Specification No. S-2020-1177BD, for a new total amount not to exceed $115,000 for the current contract year (January 1, 2022-December 31, 2022); and B. Approve three optional one-year renewals for a total amount not to exceed $115,000 per year. 1 :(r1:19111 Z I III] Orange County Sanitation District (OC San) uses an in-house Copy Center that provides a variety of printing services to all OC San departments. The location of the Copy Center is in the Administration Building at Plant No. 1 and measures approximately 20 feet by 20 feet. ARC Document Solutions covers all labor, tools, equipment, and materials necessary to provide quality, complete, and reliable printing, copying, distribution, and related services to OC San. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM The original PO amount issued for $90,000 was sufficient to cover copy center services for the first year of the contract, however, since staff has returned to office, usage of the copy center has increased. It is estimated that the costs for subsequent renewal years of this contract will increase to slightly over $100,000, which will require the approval of the Administration Committee. Orange County Sanitation District Page 1 of 2 Printed on 12/7/2022 powered by LegistarTIM File #: 2022-2651 PROPOSED SOLUTION Agenda Date: 12/14/2022 Agenda Item No: 4. Increase the PO amount by $25,000 for a new total amount not to exceed $115,000 to cover the current year and approve the same amount for all subsequent renewal periods. TIMING CONCERNS Prompt action is required to pay the final invoice of the current contract term. RAMIFICATIONS OF NOT TAKING ACTION A final invoice for this contract term will become delinquent and services for 2023 will need to be reduced. PRIOR COMMITTEE/BOARD ACTIONS N/A CEQA [HE FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital Program (M-MC-IT)). ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A Orange County Sanitation District Page 2 of 2 Printed on 12/7/2022 powered by LegistarTM Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2655 Agenda Date: 12/14/2022 Agenda Item No: 5. FROM: James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: CONTRACTING AQUATIC BIOASSAY & CONSULTING LABORATORIES, INC. FOR TAXONOMIC SERVICES GENERAL MANAGER'S RECOMMENDATION IV:tole] 1TAIf•1a101�7_,11[61,01M - • i 0FIrmi3.1: 1 01 o a 91 Ragre= on A. Approve a General Services Contract to Aquatic Bioassay & Consulting Laboratories, Inc. to provide services for sample processing and taxonomic identification of ocean bottom -dwelling animals as required by Orange County Sanitation District's NPDES ocean discharge permit, Specification No. S-2022-136613D, for a total amount not to exceed $200,000 for the period beginning March 1, 2023, through February 29, 2024, with four (4) one-year renewal options; and B. Approve an annual contingency of $20,000 (10%). BACKGROUND In accordance with Orange County Sanitation District's (OC San) ocean discharge permit (Order No. R8-2021-0010, NPDES Permit No. CA0110604), OC San is required to assess the health of ocean bottom -dwelling animal communities in the monitoring area. To achieve this, these animals are collected from the ocean floor (i.e., from sediment samples), screened from the sediment, sorted into broad taxonomic groups, and then further identified to species. The number and types of species present are used as indicators for determining the health of the ocean environment. In a typical program year, this assessment will include approximately 30,000 animals. Ocean -bottom samples are typically collected on a quarterly basis across 11 sites and annually from 11 additional sites, for a total of 55 samples. The collection area covers approximately 90 square miles surrounding OC San's ocean outfall. Additionally, during the first quarter of fiscal year 2023- 2024, OC San will be participating in a permit -required Southern California Bight Regional Monitoring Survey (Bight 2023) that occurs on a 5-year cycle. The Bight 2023 effort will require analyzing specimens from as many as 44 new regional sites. It is anticipated that the Bight 2023 assessment will add approximately 25,000 more animals to the sorting effort and as -needed taxonomic identification. Orange County Sanitation District Page 1 of 3 Printed on 12/6/2022 powered by LegistarTIM File #: 2022-2655 Agenda Date: 12/14/2022 Agenda Item No: 5. The sorting of ocean -bottom animals is laborious. The first step of the laboratory process involves removing the animals from the rocks and other debris in each sample. The animals are then sorted into five major taxonomic groups (i.e., worms, snails, sea stars, shrimp, and miscellaneous species) and prepared for further identification by OC San staff and a specialized marine taxonomic identification service. Due to the labor-intensive and episodic nature of the sorting process, OC San has utilized outside contractors to perform this function for decades in order to maximize cost-effectiveness and manage staff workload. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Sustain 1, 5, 20-year planning horizons • Comply with environmental permit requirements PROBLEM OC San is mandated by its ocean discharge permit to monitor and report annually on animal community health in the ocean environment that receives the treated wastewater effluent. The Ocean Monitoring Program is not sufficiently staffed to completely perform all ocean animal assessments in-house, including the sorting and identification of all species, and required quality assurance program elements. Therefore, additional outside contractor support continues to be necessary to allow our program to meet this extensive environmental monitoring requirement. PROPOSED SOLUTION A contract with Aquatic Bioassay & Consulting Laboratories, Inc. will provide the skill set necessary to meet OC San's permit requirements. TIMING CONCERNS The current sorting and taxonomy contract is set to expire February 28, 2023. Samples must be collected in January -March 2023 and April -June 2023 per OC San's ocean discharge permit requirements and will need to be promptly sorted and analyzed to meet taxonomic, data analysis, and reporting requirements for the 2022-23 Marine Monitoring Annual Report submittal to regulators. RAMIFICATIONS OF NOT TAKING ACTION If ocean discharge permit compliance is not met for receiving waters monitoring, OC San could be subject to enforcement action and daily penalties not to exceed $25,000 for each violation in addition to other actions deemed appropriate by the EPA and Regional Water Quality Control Board (RWQCB). �:7[�]:Zd�]►�ilJil i1441-167_1:7�7_T� [�7►6'? N/A Orange County Sanitation District Page 2 of 3 Printed on 12/6/2022 powered by LegistarTM File #: 2022-2655 Agenda Date: 12/14/2022 Agenda Item No: 5. ADDITIONAL INFORMATION On October 4, 2022, OC San issued a Notice Inviting Bids for taxonomic sorting and as -needed identification services. OC San received only one responsive bid from Aquatic Bioassay & Consulting Laboratories, Inc. for a total amount of $371,470 for the maximum possible sorting and taxonomic identification services that could be required under this contract during any given year. However, not all identification services will be required in one contract term because of the work performed in-house. Therefore, staff is recommending award of the Contract to Aquatic Bioassay & Consulting Laboratories, Inc. for a total amount not to exceed $200,000 for the first contract term in FY2023-2024, which will encompass both core monitoring and Bight 2023 regional sample requirements. During the subsequent years, sorting and as needed identification will be required only for permit -required core monitoring and is estimated to average $76,000 annually, ranging from $60,000 to $110,000 depending on the permit requirements for each contract year. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted FY 2022-23 Budget, Line item: Page 48, Operating Expense, Research & Monitoring). Date of Approval Contract Amount Contingency 12/15/2022 $200,000 $20,000 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • General Services Contract Orange County Sanitation District Page 3 of 3 Printed on 12/6/2022 powered by LegistarT" GENERAL SERVICES CONTRACT Benthic Infauna Sorting and Taxonomic Services Specification No. S-2022-1366BD This GENERAL SERVICES CONTRACT (hereinafter referred to as "Contract"), is made and entered into as of the date fully executed below, by and between Orange County Sanitation District (hereinafter referred to as "OC San") and Aquatic Bioassay & Consulting Laboratories, Inc. (hereinafter referred to as "Contractor"), and collectively referred to herein as the "Parties." RECITALS WHEREAS, OC San desires to retain the services of Contractor for benthic infauna sorting and taxonomic services ("Services") as described in Exhibit "A" attached hereto and incorporated herein by this reference; and WHEREAS, Contractor is qualified to perform the Services by virtue of experience, training, education, and expertise; and WHEREAS, OC San desires to engage Contractor to provide the Services; and WHEREAS, OC San selected Contractor to provide the Services in accordance with Ordinance No. OC SAN-56; and WHEREAS, on December 15, 2022, OC San's Board of Directors, by minute order, authorized execution of this Contract. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits specified below, the Parties agree as follows: 1. General. 1.1 This Contract and all exhibits hereto are made by OC San and the Contractor. 1.2 The following exhibits, in order of precedence, are incorporated by reference and made part of this Contract. Exhibit "A" — Scope of Work Exhibit "B" — Bid Price Form Exhibit "C" — Determined Insurance Requirement Form Exhibit "D" — Contractor Safety Standards Exhibit "E" — Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions in the Contract shall control and thereafter the provisions in the document highest in precedence shall be controlling. 1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses, or actions incurred or undertaken by Contractor as a result of work performed in anticipation of acquisition of the Services by OC San. General Services Contract 1 of 10 Specification No. S-2022-1366BD Revision 032422 1.5 Work Hours: All work or meetings with OC San staff shall be scheduled Monday through Friday, between the hours of 7:30 a.m. and 3:30 p.m. 1.6 Days: Shall mean calendar days, unless otherwise noted. 1.7 OC San holidays (non -working days) are as follows: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 Work: Shall mean all work, labor, and materials necessary to provide the Services. 1.9 The provisions of this Contract may be amended or waived only by an amendment executed by authorized representatives of both Parties. 1.10 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. 2. Scope of Work. 2.1 Contractor shall perform the Services identified in Exhibit "A" in accordance with generally accepted industry and professional standards. 2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of Work at any time. All modifications must be made by an amendment signed by both Parties. 2.3 Familiarity with Work. By executing this Contract, Contractor warrants that: (a) it has investigated the work to be performed; and (b) it understands the facilities, difficulties, and restrictions of the work under this Contract. Should Contractor discover any latent or unknown condition materially differing from those inherent in the work or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Contractor's risk, until written instructions are received from OC San. 2.4 Performance. Time is of the essence in the performance of the provisions hereof. 3. Contract Term. 3.1 The term of this Contract shall be for one (1) year commencing on March 1, 2023, and continuing through February 29, 2024. 3.2 Renewals. At its sole discretion, OC San may exercise the option to renew this Contract for up to four (4) one-year periods. This Contract may be renewed by an OC San Purchase Order. OC San shall have no obligation to renew the Contract nor to give a reason if it elects not to renew it. 3.3 Extensions. The term of this Contract may be extended only by an amendment signed by both Parties. 4. Compensation. 4.1 As compensation for the Services provided under this Contract, OC San shall pay Contractor a total amount not to exceed Two Hundred Thousand Dollars ($200,000.00). 4.2 Contractor shall provide OC San with all required premiums and/or overtime work at no charge beyond the amount specified above. General Services Contract 2 of 10 Specification No. S-2022-1366BD Revision 032422 5. Payments and Invoicing. 5.1 OC San shall pay itemized invoices for work completed in accordance with Exhibit "A" at the prices identified in Exhibit "B" thirty (30) days from receipt of the invoice and after approval by OC San's Project Manager or designee. OC San shall be the determining party, in its sole discretion, as to whether the Services have been satisfactorily completed. 5.2 Contractor shall submit its invoices to OC San Accounts Payable by electronic mail to APStaff(cD_OCSan.gov. In the subject line include "INVOICE" and the Purchase Order Number. 6. California Department of Industrial Relations Registration and Record of Wages. 6.1 To the extent Contractor's employees and/or its subcontractors perform work related to this Contract for which Prevailing Wage Determinations have been issued by the California Department of Industrial Relations (DIR) as more specifically defined under Labor Code section 1720 et seq., prevailing wages are required to be paid for applicable work under this Contract. It is Contractor's responsibility to interpret and implement any prevailing wage requirements and Contractor agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws. 6.2 Contractor and its subcontractors shall comply with the registration requirements of Labor Code section 1725.5. Pursuant to Labor Code section 1771.4(a)(1), the work is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). 6.3 Pursuant to Labor Code section 1773.2, a copy of the prevailing rate of per diem wages is available upon request at OC San's principal office. The prevailing rate of per diem wages may also be found at the DIR website for prevailing wage determinations at http://www.dir.ca.gov/DLSR/PWD. 6.4 Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations section 16461(e). Pursuant to Labor Code sections 1773.2 and 1771.4(a)(2), Contractor shall post a copy of the prevailing rate of per diem wages at the job site. 6.5 Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code section 1776. Contractor and its subcontractors shall submit payroll records to the Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). Pursuant to Labor Code section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OC San and/or the general public upon request, provided the public request is made through OC San, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations. Pursuant to Labor Code section 1776(h), penalties for non-compliance with a request for payroll records may be deducted from progress payments. 6.5.1 As a condition to receiving payments, Contractor agrees to present to OC San, along with any request for payment, all applicable and necessary certified payrolls General Services Contract 3 of 10 Specification No. S-2022-1366BD Revision 032422 and other required documents for the period covering such payment request. Pursuant to Title 8, California Code of Regulations section 16463, OC San shall withhold any portion of a payment, up to and including the entire payment amount, until certified payroll forms and any other required documents are properly submitted. In the event certified payroll forms do not comply with the requirements of Labor Code section 1776, OC San may continue to withhold sufficient funds to cover estimated wages and penalties under the Contract. 6.6 The Contractor and its subcontractors shall comply with Labor Code section 1774 and section 1775. Pursuant to Labor Code section 1775, the Contractor and any of its subcontractors shall forfeit to OC San a penalty of not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any work. 6.6.1 In addition to the penalty and pursuant to Labor Code section 1775, the difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the Contractor or its subcontractor. 6.7 Contractor and its subcontractors shall comply with Labor Code sections 1810 through 1815. Contractor and its subcontractors shall restrict working hours to eight (8) hours per day and forty (40) hours per week, except that work performed in excess of those limits shall be permitted upon compensation for all excess hours worked at not less than one and one-half (1.5) times the basic rate of pay, as provided in Labor Code section 1815. The Contractor shall forfeit, as a penalty to OC San, twenty-five dollars ($25) per worker per calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of Labor Code sections 1810 through 1815. 6.8 Contractor and its subcontractors shall comply with Labor Code sections 1777.5, 1777.6, and 1777.7 concerning the employment of apprentices by Contractor or any subcontractor. 6.9 Contractor shall include, at a minimum, a copy of the following provisions in any contract it enters into with any subcontractor: Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860, and 1861. 6.10 Pursuant to Labor Code sections 1860 and 3700, the Contractor and its subcontractors will be required to secure the payment of compensation to employees. Pursuant to Labor Code section 1861, Contractor, by accepting this contract, certifies that: "I am aware of the provisions of section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." Contractor shall ensure that all its contracts with its subcontractors provide the provision above. General Services Contract 4 of 10 Specification No. S-2022-1366BD Revision 032422 7. Damage to OC San's Property. Any of OC San's property damaged by Contractor, any subcontractor, or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OC San. 8. Freight (F.O.B. Destination). Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 9. Audit Rights. Contractor agrees that, during the term of this Contract and for a period of three (3) years after its expiration or termination, OC San shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 10. Contractor Safety Standards and Human Resources Policies. OC San requires Contractor and its subcontractor(s) to follow and ensure their employees follow all Federal, State, and local regulations as well as the Contractor Safety Standards while working at OC San locations. If, during the course of the Contract, it is discovered that the Contractor Safety Standards do not comply with Federal, State, or local regulations, the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OC San. Contractor, its subcontractors, and all of their employees shall adhere to the safety requirements in Exhibit "A," all applicable Contractor Safety Standards in Exhibit "D," and the Human Resources Policies in Exhibit "E." 11. Insurance. Contractor and all its subcontractors shall purchase and maintain, throughout the term of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Exhibit "C" — Determined Insurance Requirement Form. Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OC San, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to obtain and maintain the required insurance coverage shall result in termination of this Contract. 12. Indemnification and Hold Harmless Provision. Contractor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or may be caused by Contractor's Services under this Contract, or by its subcontractor(s), or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OC San, Contractor shall indemnify, protect, defend, and hold harmless OC San, its elected and appointed officials, officers, agents, and employees from and against any and all claims, liabilities, damages, or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person, or damage to property, or interference with the use of property arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process; or any patented or unpatented invention, article, or appliance furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless; or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently General Services Contract 5 of 10 Specification No. S-2022-1366BD Revision 032422 negligent; or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OC San, and with well qualified, adequately insured, and experienced legal counsel acceptable to OC San. This section shall survive the expiration or early termination of the Contract. 13. Independent Contractor. The relationship between the Parties hereto is that of an independent contractor and nothing herein shall be deemed to make Contractor an OC San employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OC San's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OC San's employees. 14. Subcontracting and Assignment. Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OC San. Any such attempted delegation or assignment shall be void. 15. Disclosure. Contractor agrees not to disclose, to any third party, data or information generated from this Contract without the prior written consent from OC San. 16. Non -Liability of OC San Officers and Employees. No officer or employee of OC San shall be personally liable to Contractor, or any successor -in -interest, in the event of any default or breach by OC San, or for any amount which may become due to Contractor or to its successor, or for breach of any obligation under the terms of this Contract. 17. Third -Party Rights. Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OC San and Contractor. 18. Applicable Laws and Regulations. Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold OC San harmless from any and all damages and liabilities assessed against OC San as a result of Contractor's noncompliance therewith. Any provision required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically included or referenced. 19. Licenses, Permits, Ordinances, and Regulations. Contractor represents and warrants to OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to provide the Services. Any and all fees required by Federal, State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work performed under this Contract will be paid by Contractor. 20. Regulatory Requirements. Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and Water Codes Division 2. 21. Environmental Compliance. Contractor shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Contractor, its subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. General Services Contract 6 of 10 Specification No. S-2022-1366BD Revision 032422 22. South Coast Air Quality Management District's Requirements. It is Contractor's responsibility to ensure that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open field spray painting, or demolition of asbestos containing components or structures shall comply with the appropriate rules and regulations of SCAQMD. 23. Warranties. Contractor's Warranty (Guarantee): If within a one (1) year period of completion of all work specified in Exhibit "A," OC San informs Contractor that any portion of the Services provided fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OC San and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. 24. Dispute Resolution. 24.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 24.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to Code of Civil Procedure, Part 3, Title 9, sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to Code of Civil Procedure section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 25. Remedies. In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods and Services or repudiates its obligations under this Contract, or if OC San rejects the goods or Services or revokes acceptance of the goods and Services, OC San may (a) cancel the Contract; (b) recover whatever amount of the purchase price OC San has paid, and/or (c) "cover" by purchasing, or contracting to purchase, substitute goods and Services for those due from Contractor. In the event OC San elects to "cover" as described in (c), OC San shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods and Services and the Contract price, together with any incidental or consequential damages. 26. Force Maieure. Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government, or any other cause beyond its control, but the affected party shall use reasonable efforts to minimize the extent of the delay. Work affected by a force majeure condition may be rescheduled by mutual consent of the Parties. General Services Contract 7 of 10 Specification No. S-2022-1366BD Revision 032422 27. Termination. 27.1 OC San reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OC San. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee) through the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OC San from any further fee, cost, or claim hereunder by Contractor other than for work performed through the date of termination. 27.2 OC San reserves the right to terminate this Contract immediately upon OC San's determination that Contractor is not complying with the Scope of Work requirements, if the level of service is inadequate, or for any other default of this Contract. 27.3 OC San may also immediately terminate this Contract for default, in whole or in part, by written notice to Contractor: ■ if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or ■ if Contractor sells its business; or ■ if Contractor breaches any of the terms of this Contract; or ■ if the total amount of compensation exceeds the amount authorized under this Contract. 27.4 All OC San's property in the possession or control of Contractor shall be returned by Contractor to OC San on demand or at the expiration or early termination of this Contract, whichever occurs first. 28. Attorney's Fees. If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which the prevailing party may be entitled. 29. Waiver. The waiver by either party of any breach or violation of, or default under, any provision of this Contract shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OC San does not object shall not operate as a waiver of OC San's rights to seek remedies available to it for any subsequent breach. 30. Severability. If any section, subsection, or provision of this Contract; or any agreement or instrument contemplated hereby; or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection, or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 31. Survival. The provisions of this Contract dealing with payment, warranty, indemnity, and forum for enforcement shall survive expiration or early termination of this Contract. General Services Contract 8 of 10 Specification No. S-2022-1366BD Revision 032422 32. Governing Law. This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange in the event any action is brought in connection with this Contract or the performance thereof. 33. Notices. 33.1 All notices under this Contract must be in writing. Written notice shall be delivered by personal service, by electronic telecommunication, or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand, or request sent. All notices shall be effective when first received at the following addresses: OC San: Donald Herrera Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 DHerrera(a).ocsan.gov Contractor: Joe Freas President Aquatic Bioassay & Consulting Laboratories, Inc. 29 N. Olive Street Ventura, CA 93001 Joe(aDAguaticBioassay.com 33.2 Each party shall provide the other party written notice of any change in address as soon as practicable. 34. Read and Understood. By signing this Contract, Contractor represents that it has read and understood the terms and conditions of the Contract. 35. Authority to Execute. The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 36. Entire Agreement. This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral communications and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. [Intentionally left blank. Signatures follow on the next page.] General Services Contract 9 of 10 Specification No. S-2022-1366BD Revision 032422 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by their duly authorized representatives. Dated: Dated: Dated: Dated: CMM ORANGE COUNTY SANITATION DISTRICT By: Chad P. Wanke Chair, Board of Directors By: Kelly A. Lore Clerk of the Board By: Ruth Zintzun Purchasing & Contracts Manager AQUATIC BIOASSAY & CONSULTING LABORATORIES, INC. By: Print Name and Title of Officer General Services Contract 10 of 10 Specification No. S-2022-1366BD Revision 032422 EXHIBIT A SCOPE OF WORK For Benthic Infauna Sorting and Taxonomic Services EXHIBIT A Specification No. S-2022-1366BD SCOPE OF WORK Benthic Infauna Sorting and Taxonomic Services SPECIFICATION NO. S-2022-1366BD EXECUTIVE SUMMARY / OVERVIEW The Orange County Sanitation District (OC San) operates the third largest wastewater agency west of the Mississippi River. Since 1954, we have safely collected, treated, and disposed of and/or reclaimed the wastewater generated by 2.6 million people living and working in central and northwestern Orange County, California. Each day we treat approximately 185 million gallons of wastewater, enough water to fill Anaheim stadium over two and a quarter times. About 80 percent (80%) of the wastewater comes from homes — sinks, toilets, showers, laundry, and dishwashers. The remaining come from businesses — retail stores, restaurants, manufacturers, hotels, offices, and other industries. A professional staff of more than 600 employees manages the day-to-day activities of OC San. Our facilities include 396 miles of sewer pipes, located throughout the county, and two (2) treatment plants — one (1) in Fountain Valley, CA and the other in Huntington Beach, CA — where wastewater is treated in accordance with strict state and federal standards. Our employees are on duty protecting health and the environment by ensuring the sewer system efficiently operates 24 hours a day, 7 days a week and 365 days a year. We are very proud of the job we do and take pride in providing our customers with quality service. Purpose OC San requires the services of a Service Provider for the sorting and taxonomic identification of benthic infauna samples. In addition, identification of trawl -caught macroinvertebrates is required on an ad -hoc, as -needed basis. 2 Description Samples are collected as a requirement of OC San's Ocean Monitoring Program as specified in its National Pollutant Discharge Elimination System (NPDES) ocean discharge permit. Specifically, sediment samples for infauna community analysis are collected four (4) times a year from stations located on the southern portion of the San Pedro Shelf, California. Community analysis requires that the organisms be separated (sorted) from the sediments. The Core infauna samples are collected from three (3) distinct sets of stations based on monitoring frequency required by the NPDES permit: Quarterly, Annual, and Quinquennial. The Quarterly samples are collected as single samples from eleven (11) stations ranging from 52 — 65 meters in depth, four (4) times a year. These four (4) periods are summer (July -September), fall (October -December), winter (January -March) and spring (April -June). The Annual samples are collected during the summer only and consist of eleven (11) additional stations ranging from 52 — 65 meters with one (sample per station). The Quinquennial samples are collected once in every 5-year permit cycle, in the summer, and consist of thirty-five (35) stations ranging from 40-300 meters (Table 1). Quinquennial, Annual and Quarterly station data, e.g., maps, abundances, sediment characterizations, etc., can be requested from OC San Ocean Monitoring. While most stations consist of fine sand and silt, some stations may have significant shell hash. Trawl samples for macroinvertebrate community analysis are collected twice yearly from fourteen (14) stations which are also located on the southern portion of the San Pedro Shelf, California. Community analysis is conducted from one (1) trawl at each EXHIBIT A Page 1 of 11 Specification No. S-2022-1366BD station and the analysis requires that the organisms be identified to the lowest taxon possible. The Core trawl monitoring samples are collected from two (2) sets of stations: Semi-annual and Annual. The Semi-annual trawls consist of six (6) stations ranging from 52 — 65 meters depth collected twice a year. These two (2) periods are summer (July -September) and winter (January -March). The Annual samples are collected during the summer only and consist of eight (8) stations ranging from 35- 300 meters (Table 2). Semi-annual and Annual station data, e.g., maps, abundances, etc., can be requested from OC San Ocean Monitoring. In addition, OC San will be participating in Southern California Bight Regional Marine Monitoring Surveys (Regional Surveys), every 5 years beginning in 2023 with up to forty-four (44) benthic samples and a maximum of 21 trawl sites that are to be collected, sorted and identified. The sampling locations for these samples are yet to be determined and may come from a wider variety of habitats including, but not limited to, deep basins, bays, and estuaries as well wider geographical range within the Southern California Bight including the Channel Islands (Table 1). 3 Project/Work Elements OC San requests sorting and taxonomic services outlined in Table 1. Sorting and taxonomic specifications are outlined in Section 5 and Section 6 respectively. OC San also requests taxonomic services to perform quality assurance on a limited number of infauna samples identified by OC San staff (see Section 8.2 Taxonomic QA/QC). OC San also requests ad hoc taxonomic services for trawl macro invertebrates outlined in Table 2. Taxonomic specifications for ad -hoc samples are outlined in Sections 6. NOTE: The estimated sample number and sample frequency per Exhibit B — Online Bid Price Form, are based on actual usage from the past twelve (12) months and projected for Regional Surveys (Table 1). These estimates are for bidding purposes only. OC San does not guarantee the use of the total quantity of services for all projects listed in Exhibit B — Online Bid Price Form. EXHIBIT A Page 2 of 11 Specification No. S-2022-1366BD Table 1. Survey matrix for regular Core monitoring benthic infauna sampling indicating estimated services needed Number of Survey Samples Depth range for Total per Sorting/ Survey Type Frequency period(s) collected samples (m) year Taxonomy per survey Core Four times Summer, Fall 11 52-65 44 S/T Quarterly yearly Winter & Spring Core Annual Once yearly Summer 11 52-65 11 S/T Once every Quinquennial permit cycle Summer 35 40-300 35 S/T (5 years)' Regional Survey Once every Summer 44 3 1-1000 44 S/T 5 years2 Total per year (maximum) 134 1 Next Quinquennial survey slated no earlier than the 2026-27 survey year z Next Regional Survey scheduled for 2023 'Actual depths and habitat ranges for regional stations are to be determined Table 2. Survey matrix for regular Core monitoring trawl macroinvertebrate sampling indicating estimated services needed Survey Number of Depth range for Total per Sorting/ Survey Type Frequency trawls rawls persamples (m) year Taxonomy Survey Core Twice Summer & Semi-annual yearly Winter 6 52-65 12 T Core Annual Once Summer 8 35-140 8 T yearly Regional Survey Once every Summer 21 TBD z 21 T 5 years' total 41 1 Next Regional Survey scheduled for 2023 2Actual depths and habitat ranges for regional stations are to be determined Benthic samples are collected by OC San with a 0.1 m2 modified Van Veen grab sampler. Sediment samples are screened through a 1.0 mm mesh screen and the retained organisms are gently washed into appropriate sized containers (typically into one (1) or more 1 liter wide -mouth plastic jars). Trawl samples are collected using a standard semi -balloon otter trawl towed for at least 10 minutes along the ocean floor. Those animals not identified and enumerated in the field are fixed and preserved in a similar manner as benthic samples for further identification (FID), enumeration and weight determination. In the field, an isotonic with seawater solution of Epsom Salts (MgSO4.7H2O) is used to relax the organism prior to preserving in 10% formalin. After 3 — 10 days in EXHIBIT A Page 3 of 11 Specification No. S-2022-1366BD formalin the samples are rinsed by OC San staff with tap water and stored in 70% ethyl alcohol. OC San packs samples according to Department of Transportation (DOT) regulations for pickup by Service Provider. Sorted samples (grunge) shall be returned by the Service Provider in these same containers and packaging. Trawl animals can be returned in the same containers as they were shipped in. 4 Special Provisions The Service Provider shall have facilities where contracted work will be performed within a 150-mile radius of OC San 's offices located at 10844 Ellis Avenue, Fountain Valley, California, 92708. This will provide better access to sorting and taxonomy laboratories for possible, announced, inspections by OC San staff and limit possible damage as well as cost of shipping samples and specimens. The Service Provider's taxonomists will be required to maintain consistency with OC San staff taxonomists for quality assurance purposes. In addition, they may be required participate in regional monitoring programs as representatives of, and in conjunction with, OC San taxonomists. Therefore, each of the consulting taxonomists must have previously provided macrofaunal sample invertebrate species identifications for the taxa for which they will be providing services during two (2) or more of the following Regional Surveys: SCBPP'941, Bight'98, Bight'03, Bight'08, Bight'13, or Bight'18 and be a member of the Southern California Association of Marine Invertebrate Taxonomists (SCAMIT). Attendance at regular monthly meetings is encouraged for all taxonomists. Upon request, Service Provider must provide a list of qualifying taxonomists and written verification of their participation in a minimum of two (2) Bight surveys and current membership in SCAMIT. 5 Sorting Specifications All samples shall be sorted into five (5) major taxa groups (aliquots): Polychaeta, Mollusca, Arthropoda, Echinodermata, and Miscellaneous Phyla. For the purposes of this document Miscellaneous Phyla shall include the Subclass Echiura. They shall be vialed or jarred together in the following manor: • Polychaeta (1 vial minimum) • Arthropoda (1 vial minimum) • Mollusca (1 vial minimum) • Echinodermata (1 vials minimum) • Miscellaneous Phyla (1 vial minimum) For general labeling, sample handling, and container specifications see Section 7. Sorted animal vials and jars shall be packaged and hand delivered by station and replicate in individual clear plastic Ziploc® bags, or equivalent. Each bag shall be marked on the outside with the station and replicate as well as the sampling month and year. Along with a printed chain of custody (COC) detailing the number of vials and jars for each set of sorted samples delivered, an electronic inventory of number of vials and individuals removed for each sample is to be compiled and submitted in the form of a Microsoft Excel spreadsheet (version 2010 or higher; template to be provided). This spreadsheet shall contain the following fields: • Sample Number • Sample Fixation • Sample Date • Total Number of animals (all taxa, as defined section 6) 1 Southern California Bight Pilot Project conducted in 1994 EXHIBIT A Page 4 of 11 Specification No. S-2022-1366BD 6 • Sorter Name • Date Sorting Completed • Overall Preservation Quality (Good, Fair, or Poor) • Single Major Component of non -marine animal constituent(s) wood, algae, seeds, fly larvae, fibers, coarse sand, fine sand, material, sewage debris, micro -detritus, or other(specify)) • Number of vials for each aliquot • Number of jars for each aliquot (shell -hash, tubes, pea gravel organic The Service Provider shall deliver sorted animals in a timely manner as outlined in Table 3. Table 3 Benthic aliquots and ad hoc trawl macroinvertebrate identifications delivery schedules. Survey Type (surveys per year) Delivery milestones Core Quarterly (4) 30 days after first receipt of samples per survey Core Annual (1) 30 days after first receipt of samples per survey Quinquennial (1) 1st half 30 days/2"d half 45 days after first receipt of samples per survey Regional Survey (1) 15t half 30 days/2"d half 45 days after first receipt of samples per survey Taxonomy Reporting Specifications a. General Identification and Data Recording Guidelines: The number of organisms reported must account for all organisms in a sample alive at the time of collection. A corollary goal is to not count any individual more than once. Inevitably, samples contain fragments of organisms. Fragments of bilaterally symmetrical organisms will be identified and counted only if the fragment includes the anterior end of the organism. For radially symmetrical organisms (e.g., ophiuroids, anthozoans, etc.) only fragments bearing the majority of the oral disk will be identified and counted; while organisms such as sipunculids require the trunk (body) to be counted — not the introvert. Care must be taken to avoid reporting empty mollusk shells or crustacean molts. Only soft bottom species are to be recorded. Hard -bottom epifaunal and pelagic organisms may occur incidentally in samples and are not included in data analyses. Their presence and number may be noted on the data sheets and a qualifier code should accompany the record. In addition, a brief explanatory comment is preferred. Sorters are not required to differentiate these organisms. Records of animals unable to be identified to species due to condition, life stage, etc. shall be reported to the lowest level practical with explanation noted in the comments field. Example comments include: fragment, juvenile, crushed shell, regenerating head, missing appendages, etc. The record shall also include the appropriate qualifiers: Juvenile, Damaged, Mutation, Colonial Epibenthic, Pelagic Organisms, and Fouling Organisms. See Section 10 Data Submittal Guidelines. EXHIBIT A Page 5 of 11 Specification No. S-2022-1366BD If specimens are removed (e.g., for voucher or for further identification (FID)), the number of individuals shall be recorded and reason for the removal noted in the comments field. The taxon recorded shall follow the exact orthography and phylogeny as that listed in the OC San's Master Species List (MSL) maintained and provided by OC San. For those taxa not on the MSL, the Southern California Association of Marine Invertebrate Taxonomists (SCAMIT) species list should be consulted, when possible. The version of the list in effect will be determined by OC San at the time of sample distribution. For those taxa not found on either list the World Registry of Marine Species (WoRMS; www.marinespecies.org) may be used as the authority. If the Service Provider's taxonomists find it necessary to designate a provisional species, the exact orthography and format shall conform to protocols outlined in SCCWRP (2008)2 for in-house provisional taxa, e.g., Polycirrus sp OC1 indicates the first provisional in the genus Polycirrus from OC San. The taxonomist shall provide documentation of said species which shall conform with SCAMIT (2022)3 specifications for form and content. Documentation shall be submitted with the final data set in PDF or Word 2010 or higher format. All abundance records shall also include an exclude from Diversity notation (yes or no) as defined by SCCWRP (2008)4. Additionally, biomass per species shall also be recorded to the nearest gram in the comments section of the data recording sheet for all ad hoc trawl macroinvertebrate samples. Each taxonomist will be responsible for identification and data entry for assigned samples and taxa. Electronic data sheets (in the form of Excel spreadsheets) will be provided by OC San to each taxonomist. The final form will be supplied prior to a request for taxonomic services. This form will be used to report all data to the OC San (Figure 1). The Service Provide shall deliver the entire survey of identified animals and data within 120 days of receiving the samples. Provisions for an extension may be made with 30 days' written notice. b. Voucher Guidelines At a minimum, all contracting taxonomists are required to voucher one (1) or more specimens of all species that are new to the OC San MSL, a newly erected provisional, or not listed on the most current SCAMIT species list. Labeling: Pre-cut form voucher labels along with instructions for completing them will be supplied prior to a request for taxonomic services. z SCCWRP 2008. 3.Taxonomic Analysis. Southern California Bight 2008 Regional Marine Monitoring Survey (Bight'08) Macrobenthic (Infaunal) Sample Analysis Laboratory Manual. Southern California Coastal Water Research Project. (www.SCCWRP.org) 3 SCAMIT 2022. SCAMIT Voucher Sheet Guidelines. (www.SCAMIT.org) 4 SCCWRP 2008. ibid. EXHIBIT A Page 6 of 11 Specification No. S-2022-1366BD Vialing: All specimens shall be placed into smallest vial/jar (minimum 4 dram screw cap) into which they will fit without being damaged or distorted. All containers shall be filled completely with 70% ethanol. If needed, smaller specimens shall be placed in an unlabeled '/o dram shell vial with cotton stopper (no bubbles) and then place into larger screw cap vial. See Section 7 for more details. 7 Material and General Sample Handling Specifications a. Preservation The container shall be of the appropriate size so that specimens are not crowded in the jar or vial and allow for sufficient volume of preservative, i.e., no less than 50% of the total container volume, and filled to the brim with 70% ethanol by volume. Full strength ethanol (95% ethanol and 5% water) shall be diluted to the prescribed strength with distilled or de -ionized water. Denatured ethanol, in any form, shall not be used. b. Containers All screw cap vials will be 4 drams or larger and shall be made of glass and have Polyseal®-Lined Plastic Caps. Jars shall be round wide mouth jars made of glass in 32, 16, 8, & 4 oz. sizes with lids composed of Green Thermoset ® screw caps with foam -backed Fluoropolymer resin liner, made by Qorpak®. Caps with paper liners are prohibited. c. Labels Labels inserted into the container with the animals shall be positioned so that the specimen is not pinned between the vial or jar and the label or impede it in anyway. Pre-printed voucher labels will be provided by OC San. All internal labels shall be composed of 100% linen paper. Sorting labels shall too be precut into roughly: 5 cm x 2 cm for use with 4 dram vials or larger. At a minimum, all labels shall include the acronym "OCSD" the survey type (Semi- annual, Annual, Bight'23), complete collection data (station and replicate, collection date, depth in meters), aliquot name, and initials of the sorter on out facing side. The back shall include the 7 digit sample number printed on the external and internal label of each sample. Soft to medium pencil (e.g., 2H) or indelible black ink (e.g., 0.5 mm Uni-ball Deluxe Micro® pen or 0.5 mm Micron Archival Ink® pen) shall be used for recording these data onto specimen labels. Preprinted blank labels can be used when printed on the specified paper with laser printer for sorted samples only. OC San can provide a template. 8 Quality Assurance/Quality Control (QA/QC) Infaunal QA/QC are divided into two (2) parts: Sorting QA/QC, and Taxonomic QA/QC. a. Sorting QA/QC Prior to delivery of aliquots, every sample is assessed in house by the Service Provider for sorting efficacy using a statistically based sorting QA/QC procedure. This procedure requires that the QA analyst tally the total number of organisms removed from each sample (F). This F value is compared to Table 4 providing 95% confidence limits for F values. The QA analyst must identify the table F value that comes closest to the sample F value without exceeding it. For each F value in the table there is a corresponding C value. EXHIBIT A Page 7 of 11 Specification No. S-2022-1366BD These (C) values provide the basis for evaluating how effectively the sorter has processed each sample, as they represent the maximum number of animals that can be found in the remaining portion (RP) during the resort process before exceeding the sorting efficiency criteria. After the QA analyst has identified the appropriate C value for this sample, 10% of the RP (volumetrically defined) is re-examined and, if the number of animals removed from the 10% volume was less than or equal to the table C value, then the sample passes the designated sorting criteria, and no further resort is necessary. However, if the number of animals found in the first 10% RP volume is greater than the table value, the QA/QC procedure continues. The first 10% volume of RP is kept separate and another 10% fraction is removed for resorting. This stepped procedure continues until the sample passes or a total of 30% of the RP has been resorted for QA/QC. If the sample still fails at the 30% level, the entire sample is resorted by the Service Provider and processed through another QA/QC check. This process repeats until all samples pass. The Service Provider shall report the results of these at the same time as the aliquots delivery. The report (as an Excel spreadsheet) shall include for each sample the sample number, the sorters name, total volume percentage resorted needed to pass QA, the number of total resorts completed (if any) and the F value. Annually, 10% of each sorters allotment for a given survey will be randomly selected (with a minimum of one) for complete resort by OC San staff. Sorting efficiency shall not exceed 10% of the total animals reported. For those sorters who exceed 10% a second sample will be randomly selected for resort. If that samples also fails, then the contactor will be required to resort all samples sorted by identified sorter. b. Taxonomic QA/QC The District's Infauna Taxonomic QA/QC Procedures are outlined in Appendix B. As part of the Core monitoring program the contract taxonomist may be required to participate at all levels including attending possible face to face meetings with staff at the OC San facilities in Fountain Valley, CA. Regional Survey QA/QC procedures are expected to be similar to Bight'185. Participation will be mandatory for all Service Providers for those specialties needed by OC San. 9 Storage and Return of Aliquots All samples will be returned to OC San by 90 days after the completion of QA/QC and reconciliation. Each survey type shall be kept together and separate from other survey types and ship as one (1) and should include a printed COC. 10 Data Submittal Guidelines For Core work data shall be submitted to OC San by Service Provider using the formatted Excel 2010 spreadsheets provided by OC San (Figure 1). Regional Survey 5 SCCWRP 2018. 5. Quality Control. Southern California Bight 2018 Regional Marine Monitoring Survey (Bight'18) Macrobenthic (Infaunal) Sample Analysis Laboratory Manual. Southern California Coastal Water Research Project. EXHIBIT A Page 8 of 11 Specification No. S-2022-1366BD data shall be submitted directly to the relevant Bight Committee. See SCCWRP (2018)6 data submittal guidelines. 11 Staff Assistance The Contractor will be assigned a single point of contact on this project. Any meetings and/or correspondence related to this project shall be scheduled and approved by the Project Manager. 6 SCCWRP 2018. 4. Data Submission and the Form of Taxonomic Names Southern California Bight 2018 Regional Marine Monitoring Survey (Bight'18) Macrobenthic (Infaunal) Sample Analysis Laboratory Manual. Southern California Coastal Water Research Project. EXHIBIT A Page 9 of 11 Specification No. S-2022-1366BD Figure 1 Data sheet example; actual template may vary Infauna Data Entry Cmise_ NA Sample 4 1843772 Station _73 SampleaxNate_ 777Y2015 Depth: 57 Nr�p#: NA Major Taxa Arthropods Tono st J_Taxonoml Num Class Order Family Species Name V _ Q — E E Z Comments 1 Eu hilomedes carcharodonta 1002DD 18 No 2 Ampellsca'gass77500 4 No 3 Am lisca care 111900 1 No 4 Ampelisca b—simulata_117DD No 5 m sca AIld br—ii—data 1175' 6 No 6 Ampelisca cristata cristata_12DDD 1 No 7 Am tsca hancocki 114DO 1 I IN. 8 Ampetscapac4ica_131DD 1 No 9 Listriella oleta 1444DD 1 No 10 Byblls millsi 46000 2 No 11 Rhe o n us bicus idatus 239900 1 No 12 Rhepoxybius menziesi_24D4OO 4 No 13 Rhe o nusstenodes 2407DD 3 No 14 RhepoxynWs daboius_24DDDD 1 No 15 Munno ovum tillerae 169300 2 No 16 Mayerella banksi a_1577DD 1 No 17 Ara hura bI—iaria 29400 1 No 18 Rutiderma lomae_243400 1 No 19 Eusarsiellathominx 102400 2 No 20 Mesolampropsbispinosus_161900 11 1 IN. EXHIBIT A Page 10 of 11 Specification No. S-2022-1366BD Table 4 F and C values for 10 - 30% fractions (95% QC Limits, 5% Missed, 100 Split; FRAC = The total fraction subsampled; F = The number originally found in the core; C = Cumulative total of this and all previous samples.) Quality Control Limits for Benthic Infauna FRAC F C FRAC F C FRAC F C FRAC F C 0.1 550 1 0.2 2058 17 0.3 834 10 0.3 2588 41 0.1 877 2 0.2 2156 18 0.3 897 11 0.3 2641 42 0.1 1168 3 0.2 2253 19 0.3 959 12 0.3 2694 43 0.1 1440 4 0.2 2350 20 0.3 1020 13 0.3 2747 44 0.1 1700 5 0.2 2446 21 0.3 1081 14 0.3 2800 45 0.1 1951 6 0.2 2541 22 0.3 1141 15 0.3 2852 46 0.1 2195 7 0.2 2636 23 0.3 1200 16 0.3 2905 47 0.1 2435 8 0.2 2731 24 0.3 1259 17 0.3 2958 48 0.1 2670 9 0.2 2825 25 0.3 1317 18 0.3 3010 49 0.1 2902 10 0.2 2919 26 0.3 1375 19 0.3 3062 50 0.1 3130 11 0.2 3012 27 0.3 1433 20 0.3 3115 51 0.1 3356 12 0.2 3105 28 0.3 1490 21 0.3 3167 52 0.1 3580 13 0.2 3198 29 0.3 1547 22 0.3 3219 53 0.1 3802 14 0.2 3291 30 0.3 1604 23 0.3 3271 54 - - - 0.2 3383 31 0.3 1661 24 0.3 3323 55 0.2 265 1 0.2 3475 32 0.3 1717 25 0.3 3375 56 0.2 419 2 0.2 3566 33 0.3 1773 26 0.3 3426 57 0.2 554 3 0.2 3658 34 0.3 1828 27 0.3 3478 58 0.2 680 4 0.2 3749 35 0.3 1884 28 0.3 3530 59 0.2 800 5 0.2 3840 36 0.3 1939 29 0.3 3581 60 0.2 915 6 0.2 3931 37 0.3 1994 30 0.3 3633 61 0.2 1028 7 - - - 0.3 2049 31 0.3 3684 62 0.2 1137 8 0.3 170 1 0.3 2103 32 0.3 3735 63 0.2 1245 9 0.3 266 2 0.3 2158 33 0.3 3787 64 0.2 1351 10 0.3 349 3 0.3 2212 34 0.3 3838 65 0.2 1455 11 0.3 427 4 0.3 2266 35 0.3 3889 66 0.2 1558 12 0.3 500 5 0.3 2320 36 0.3 3940 67 0.2 1660 13 0.3 570 6 0.3 2374 37 0.3 3991 68 0.2 1761 14 0.3 638 7 0.3 2427 38 - - 0.2 1861 15 0.3 705 8 0.3 2481 39 - - 0.2 1960 16 0.3 770 9 0.3 2534 40 - - Estimate the number sorted the first time, call it F*. Under the fraction subsampled, find the largest F that does not exceed F*. The corresponding C is the largest number you can find in the quality control subsample and not have to count further. EXHIBIT A Page 11 of 11 Specification No. S-2022-1366BD Exhibit "B" BID PRICE FORM 5-2022-1366BD Project Benthic Infauna Sorting and Taxonomic Services Exhibit B Item No. Section Description Unit of Measure Unit Price 1 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) Sorting/sample- removing animals from sediments into taxa groups listed in SOW Each $420.00 2 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species Each $535.00 3 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) Taxonomy/sample- Arthropod a- specific identifications of taxa to species and counts of abundance/species Each $125.00 4 Regular Monitoring Sampling- Quarterly Benthic Surveys(n=11 stations/survey) Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species Each $110.00 5 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species Each $75.00 6 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species Each $100.00 7 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) QA Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species Each $535.00 8 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) QA Taxonomy/sample Arthropoda- specific identifications of taxa to species and counts of abundance/species Each $125.00 9 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) QA Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species Each $110.00 10 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) QA Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species Each $75.00 11 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) QA Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species Each $100.00 12 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) QA Reconciliation - Polychaeta- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 13 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) QA Reconciliation - Arthropoda- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 14 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) QA Reconciliation - Mollusca- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 15 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) QA Reconciliation - Echinodermata - Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 16 Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey) QA Reconciliation- Miscellaneous Phyla- Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 17 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 18 Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey) Project Management/Survey Each $2,800.00 19 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) Sorting/sample- removing animals from sediments into taxa groups listed in SOW Each $420.00 20 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) Taxonomy/sample-Polychaeta- specific identifications of taxa to species and counts of abundance/species Each $535.00 21 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) Taxonomy/sample- Arthropoda - specific identifications of taxa to species and counts of abundance/species Each $125.00 22 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species Each $110.00 23 Regular Monitoring Sampling -Annual Benthic Surveys (n =11 stations/survey) Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species Each $75.00 24 Regular Monitoring Sampling - Annual Benthic Surveys (n =11 stations/survey) Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species Each $100.00 25 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) QA Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species Each $535.00 26 Regular Monitoring Sampling -Annual Benthic5urveys(n=11 stations/survey) QA Taxonomy/sample Arthropoda- specific identifications of taxa to species and counts of abundance/species Each $125.00 27 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) QA Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species Each $110.00 28 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) QA Taxonomy/sample - Echinodermata - specific identifications of taxa to species and counts of abundance/species Each $75.00 29 Regular Monitoring Sampling -Annual Benthic Surveys (n =11 stations/survey) QA Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species Each $100.00 30 Regular Monitoring Sampling - Annual Benthic Surveys (n =11 stations/survey) QA Reconciliation - Polychaeta- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 31 Regular Monitoring Sampling -Annual Benthic Surveys (n =11 stations/survey) QA Reconciliation - Arthropoda- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 32 Regular Monitoring Sampling - Annual Benthic Surveys (n =11 stations/survey) QA Reconciliation - Mollusca- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 33 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) QA Reconciliation - Echinodermata - Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 34 1 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) QA Reconciliation- Miscellaneous Phyla- Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 35 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 36 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey) Project Management/Survey Each $2,800.00 37 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) Sorting/sample- removing animals from sediments into taxa groups listed in SOW Each $420.00 38 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) Taxonomy/sample-Polychaeta- specific identifications of taxa to species and counts of abundance/species Each $535.00 39 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) Taxonomy/sample- Arthropoda - specific identifications of taxa to species and counts of abundance/species Each $170.00 40 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species Each $110.00 41 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species Each $75.00 42 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species Each $125.00 43 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) QA Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species Each $535.00 44 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) QA Taxonomy/sample Arthropoda- specific identifications of taxa to species and counts of abundance/species Each $170.00 45 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) QA Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species Each $110.00 46 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) QA Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species Each $75.00 47 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) QA Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species Each $125.00 48 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) QA Reconciliation - Polychaeta- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 49 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) QA Reconciliation - Arthropoda- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 50 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) QA Reconciliation - Mollusca- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 51 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) QA Reconciliation - Echinodermata - Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 52 Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey) QA Reconciliation- Miscellaneous Phyla- Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 53 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 54 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) Project Management/Survey Each $2,800.00 55 Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey) (Blank) N/A 56 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n=6stations/survey) Ad hoc Taxonomy/sample-Polychaeta- specific identifications of taxa to species, counts of abundance/species, biomass/species Each $105.00 57 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n =6stations/survey) Ad hoc Taxonomy/sample- Arthropoda - specific identifications of taxa to species, counts of abundance/species, biomass/species Each $205.00 58 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n=6stations/survey) Ad hoc Taxonomy/sample- Mollusca - specific identifications of taxa to species, counts of abundance/species, biomass/species Each $105.00 59 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n = 6 stations/survey) Ad hoc Taxonomy/sample- Echinodermata - specific identifications of taxa to species, counts of abundance/species, biomass/species Each $205.00 60 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n = 6 stations/survey) Ad hoc Taxonomy/sample- Miscellaneous Phyla - specific identifications of taxa to species, counts of abundance/species, biomass/species Each $205.00 61 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n =6stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 62 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n=6stations/survey) Project Management/Survey Each $1,800.00 63 Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n =6stations/survey) (Blank) N/A 64 Regular Monitoring Sampling- Annual Trawls Surveys (n=8 stations/survey) Ad hoc Taxonomy/sample-Polychaeta- specific identifications of taxa to species, counts of abundance/species, biomass/species Each $155.00 65 Regular Monitoring Sampling- Annual Trawls Surveys (n=8 stations/survey) I Ad hoc Taxonomy/sample- Arthropoda - specific identifications of taxa to species, counts of abundance/species, biomass/species Each $255.00 66 Regular Monitoring Sampling- Annual Trawls Surveys (n=8 stations/survey) Ad hoc Taxonomy/sample- Mollusca — specific identifications of taxa to species, counts of abundance/species, biomass/species Each $155.00 67 Regular Monitoring Sampling -Annual Trawls Surveys (n =8 stations/survey) Ad hoc Taxonomy/sample- Echinodermata — specific identifications of taxa to species, counts of abundance/species, biomass/species Each $310.00 68 Regular Monitoring Sampling - Annual Trawls Surveys (n =8 stations/survey) Ad hoc Taxonomy/sample- Miscellaneous Phyla — specific identifications of taxa to species, counts of abundance/species, biomass/species Each $205.00 69 Regular Monitoring Sampling - Annual Trawls Surveys (n=8 stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 70 Regular Monitoring Sampling - Annual Trawls Surveys (n=8 stations/survey) Project Management/survey Each $1,800.00 71 Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey) Sorting/sample— removing animals from sediments into taxa groups listed in SOW Each $420.00 72 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) Taxonomy/sample-Polychaeta— specific identifications of taxa to species and counts of abundance/species Each $535.00 73 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) Taxonomy/sample- Arthropod a— specific identifications of taxa to species and counts of abundance/species Each $250.00 74 1 Regional Monitoring Sampling- Bight Benthic Surveys(n=44 stations/survey) Taxonomy/sample- Mollusca — specific identifications of taxa to species and counts of abundance/species Each $110.00 75 Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey) Taxonomy/sample- Echinodermata— specific identifications of taxa to species and counts of abundance/species Each $75.00 76 Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey) Taxonomy/sample- Miscellaneous Phyla— specific identifications of taxa to species and counts of abundance/species Each $210.00 77 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Taxonomy/sample - Polychaeta — specific identifications of taxa to species and counts of abundance/species Each $535.00 78 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Taxonomy/sample Arthropoda— specific identifications of taxa to species and counts of abundance/species Each $250.00 79 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Taxonomy/sample- Mollusca — specific identifications of taxa to species and counts of abundance/species Each $110.00 80 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Taxonomy/sample - Echinodermata — specific identifications of taxa to species and counts of abundance/species Each $75.00 81 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Taxonomy/sample- Miscellaneous Phyla— specific identifications of taxa to species and counts of abundance/species Each $210.00 82 Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey) QA Reconciliation - Polychaeta— Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 83 1 Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey) QA Reconciliation - Arthropoda— Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 84 Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey) QA Reconciliation - Mollusca— Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist) Hour $102.00 85 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Reconciliation - Echinodermata — Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 86 Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey) QA Reconciliation— Miscellaneous Phyla— Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist) Hour $102.00 87 Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 88 Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey) Regional Bight Taxonomy ad hoc QA/QC meetings, including SCAMI7", (costs per 4-hr (half -day) meeting/taxonomist, including travel) — participation in required Regional Bight taxonomy and taxonomy QA meetings. Each $615.00 89 Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey) Project Management/Survey Each $2,800.00 90 Regional Monitoring Sampling- Bight Trawls Surveys (n=21 stations/survey) Ad hoc Taxonomy/sample-Polychaeta— specific identifications of taxa to species, counts of abundance/species, biomass/species Each $360.00 91 1 Regional Monitoring Sampling- Bight Trawls Surveys (n=21 stations/survey) lAd hoc Taxonomy/sample- Arthropoda — specific identifications of taxa to species, counts of abundance/species, biomass/species Each $360.00 92 1 Regional Monitoring Sampling- Bight Trawls Surveys (n =21 stations/survey) IAcI hoc Taxonomy/sample- Mollusca— specific identifications of taxa to species, counts of abundance/species, biomass/species Each $205.00 93 Regional Monitoring Sampling -Bight Trawls Surveys (n =21 stations/survey) Ad hoc Taxonomy/sample- Echinodermata — specific identifications of taxa to species, counts of abundance/species, biomass/species Each $310.00 94 Regional Monitoring Sampling- Bight Trawls Surveys (n =21 stations/survey) lAd hoc Taxonomy/sample- Miscellaneous Phyla — specific identifications of taxa to species, counts of abundance/species, biomass/species Each $410.00 95 Regional Monitoring Sampling - Bight Trawls Surveys (n=21 stations/survey) Voucher specimen and voucher sheet preparations per taxa Each $615.00 96 Regional Monitoring Sampling - Bight Trawls Surveys (n=21 stations/survey) I Project Management/SurveyManagement/Survey Each $1,800.00 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2648 Agenda Date: 12/14/2022 Agenda Item No: 6. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INTERNET FIREWALL UPGRADE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file bid tabulation for Fortigate Firewall Upgrade, Specification No. E-2022- 1363BD; B. Receive and file first Notice of Intent to Award dated October 13, 2022; C. Receive and file protest letter received from NH&A, LLC dated October 13, 2022 concerning the award to Xpert Solutions, Inc.; D. Receive and file second Notice of Intent to Award dated October 14, 2022; E. Receive and file second protest letter received from Xpert Solutions, Inc. dated October 18, 2022 concerning the award to NH&A, LLC; F. Receive and file Orange County Sanitation District's Protest Response Letter dated October 31, 2022; G. Approve a Purchase Order Contract to NH&A, LLC for the purchase of Fortigate Firewall Upgrade, Specification No. E-2022-1363BD, for a total amount not to exceed $226,698 plus applicable sales tax; H. Approve four (4) optional one-year renewals for maintenance and support for an annual amount not to exceed $80,458 plus applicable sales tax; and Approve a contingency of $22,670 (10%) for the purchase upgrades and subsequent renewals. BACKGROUND The current internet firewalls at Orange County Sanitation District (OC San) Plant Nos.1 and 2 can only operate at 1 Gbps. The firewalls are the gateway for internal networks to communicate with the internet and they also route and inspect traffic among OC San's internal networks. Orange County Sanitation District Page 1 of 4 Printed on 12/7/2022 powered by LegistarTIM File #: 2022-2648 Agenda Date: 12/14/2022 Agenda Item No: 6. Other IT projects are upgrading the data center, office network, and internet network equipment to meet today's high bandwidth and speed requirements, which allows the network to operate at a minimum 10Gbps. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Ensure the public's money is wisely spent • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard • Protect OC San assets PROBLEM Due to hardware limitations, the current internet firewalls cannot support the increased capacity requirements of the new data center, office network, and internet network equipment. Therefore, the firewalls will become a congestion point of the network if not upgraded. The ability to scan and analyze security threats will also be limited. PROPOSED SOLUTION The Fortigate 180OF firewalls were chosen to meet the bandwidth and security requirements of the new network equipment. In addition to the bandwidth increase, the proposed firewalls deliver high- performance threat protection to keep OC San's networks secure. TIMING CONCERNS Proper maintenance and performance of the internet firewalls at both Plant Nos. 1 and 2 are imperative for the continued support and security of OC San's networks. RAMIFICATIONS OF NOT TAKING ACTION Not upgrading the firewalls at Plant Nos. 1 and 2 would result in network congestion or slowness and increase security risks. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION A Notice Inviting Bids was issued on September 14, 2022 via PlanetBids. Bids were due on October 12, 2022. OC San received nine (9) bids valid for 180 calendar days from the bid opening date. Two (2) bids received were considered as non -responsive as one bidder (Charity IT) did not bid on all line items and the other bidder (vCloud Tech, Inc.) did not submit the required bid submittals. Orange County Sanitation District Page 2 of 4 Printed on 12/7/2022 powered by LegistarTM File #: 2022-2648 Agenda Date: 12/14/2022 Agenda Item No: 6. BID RESULTS The following is a list of the firms that submitted a bid. Project Manager's Estimate: $250,000 Company Name Bid (pricing below does not include the applicable sales tax) Determination NH&A, LLC $226,697.76 Responsive Xpert Solutions, Inc. $231,074.00 Responsive Hypertec USA Inc. $252,133.97 Responsive vCloud Tech, Inc. $274,302.35 Non -responsive vPrime Tech, Inc. $285766.95 Responsive Sterling Computers Corp $285,827.81 Responsive D1 Networks, Inc. $337,499.20 Responsive Granite Telecommunications $351,628.40 lResponsive Charity IT $0.00 Non -responsive The proposed award was originally recommended to Xpert Solutions, Inc. and, immediately after, a protest from NH&A, LLC was received. Upon review, it was determined the original award should be rescinded due to an administrative error and a revised Notice of Intent to Award was issued to NH&A, LLC. A second protest was received from Xpert Solutions, Inc. expressing concern over the validity of the bid provided by NH&A, LLC. OC San thoroughly researched the claim and found no discrepancies with NH&A's bid and confirmed it met all the requirements. Therefore, staff recommends approving the Purchase Order Contract to NH&A, LLC. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital Program (M-MC-IT)). ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Bid Tabulation • Notice of Intent to Award dated October 13, 2022 • Protest letter received from NH&A, LLC dated October 13, 2022 • Notice of Intent to Award dated October 14, 2022 Orange County Sanitation District Page 3 of 4 Printed on 12/7/2022 powered by LegistarTM File #: 2022-2648 Agenda Date: 12/14/2022 Agenda Item No: 6. Protest letter received from Xpert Solutions, Inc. dated October 18, 2022 OC San's Protest Response Letter dated October 31, 2022 Orange County Sanitation District Page 4 of 4 Printed on 12/7/2022 powered by LegistarT" FORTIGATE FIREWALL UPGRADE TITLE: E-2022-1363BD LOWEST BIDDER DATE: 10/13/2022 BIDDER #1 BIDDER #2 BIDDER #3 BIDDER #4 BIDDER #5 BIDDER #6 BIDDER #7 BIDDER #8 BIDDER #9 vCloud Tech, Inc Charity IT Granite Hypertec USA, Inc. NH&A, LLC Xpert Solutions, Inc. Sterling Computers Corp vPrime Tech, Inc. D1 Networks, Inc. Telecommunications (non -responsive) (non -responsive) UNIT ITEM # ITEM DESCRIPTION UOM QTY UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL PRICE TOTAL 1 FortiGate-1800F EA 4 $30,617.20 $122,468.80 $ 46,186.00 $184,744.00 $ 54,427.85 $217,711.40 $ 30,021.00 $120,084.00 $ 37,362.02 $149,448.08 $ 36,209.97 $144,839.88 $ 45,724.14 $182,896.56 $ 34,757.27 $139,029.08 No Bid No Bid FortiGate-1800 F, 1-Year Included in Included in 2 Enterprise Protection EA 4 $30,061.44 $120,245.76 $39,258.10 $157,032.40 line item# 1 line item# 1 $25,517.00 $102,068.00 $31,763.72 $127,054.88 $32,830.37 $131,321.48 $36,117.45 $144,469.80 $31,513.26 $126,053.04 No Bid No Bid REQUIRED Fortinet Professional Service (BASIS FOR Resource Service (SOW) REWARD) 3 Consultant EA 3 $2,922.47 $8,767.41 $3,000.00 $9,000.00 $2,784.40 $8,353.20 $2,790.00 $8,370.00 $2,878.79 $8,636.37 $2,979.21 $8,937.63 $3,100.00 $9,300.00 $2,859.69 $8,579.07 No Bid No Bid Fortinet FortiGate Rack Slide 4 Rail Kit EA 4 $163.00 $652.00 $213.00 $852.00 $158.29 $633.16 $138.00 $552.00 $172.12 $688.48 $166.99 $667.96 $208.21 $832.84 $160.29 $641.16 No Bid No Bid (Basis for Award) SUBTOTAL: $252,133.97 $351,628.40 $226,697.76 $231,074.00 $285,827.81 $285,766.95 $337,499.20 $274,302.35 $0.00 Year 2 Renewal: FortiGate- 1800F 1-Year Enterprise 5 Protection EA 4 No bid No bid No bid No bid $ 20,114.60 $ 80,458.40 $ 33,369.00 $ 133,476.00 $ 31,763.72 $ 127,054.88 $ 32,830.37 $ 131,321.48 $ 36,117.45 $ 144,469.80 No bid $0.00 No Bid No Bid Year 3 Renewal: FortiGate- OPTIONAL 1800F 1-Year Enterprise (NOT A 6 Protection EA 4 No bid No bid No bid No bid $ 20,114.60 $ 80,458.40 $ 33,369.00 $ 133,476.00 $ 31,763.72 $ 127,054.88 $ 32,830.37 $ 131,321.48 $ 36,117.45 $ 144,469.80 $ 94,539.79 $ 378,159.16 No Bid No Bid BASIS FOR Year 4 Renewal: FortiGate- REWARD) 1800F 1-Year Enterprise 7 Protection EA 4 No bid No bid No bid No bid $ 20,114.60 $ 80,458.40 $ 33,369.00 $ 133,476.00 $ 31,763.72 $ 127,054.88 $ 32,830.37 $ 131,321.48 $ 36,117.45 $ 144,469.80 No bid $0.00 No Bid No Bid Year 5 Renewal: FortiGate- 1800F 1-Year Enterprise g 113rotection EA 1 4 1 No bid I No bid I No bid No bid $ 20,114.60 $ 80,458.40 $ 33,369.00 $ 133,476.00 $ 31,763.72 $ 127,054.88 $ 32,830.37 $ 131,321.48 $ 36,117.45 $ 144,469.80 $ 157,566.31 $ 630,265.24 No Bid No Bid (Not A Basis for Award) SUBTOTAL:1 $0.00 1 $0.00 1 $321,833.60 $533,904.00 $508,219.52 $525,285.92 $577,879.20 $1,008,424.40 $0.00 10844 Ellis Avenue Fountain Valley, CA 92708 OC6SAN714...2.24.1 ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov October 13, 2022 SUBJECT: Notice of Intent to Award for Specification No. E-2022-1363BD FortiGate Firewall Upgrade Serving. Anaheim Brea Buena Park Cypress Fountain valley Fullerton Garden Grove In conformance with Orange County Sanitation District's (OC San's) Huntington Beach Purchasing Ordinance No. OC San-56, the contract for Specification No. Irvine E-2022-1363BD FortiGate Firewall Upgrade, is being awarded to Xpert Solutions, Inc., subject to approval by the Administration Committee. La Habra La Palma Thank you for your participation in the procurement process. OC San regards your firm as an important and valuable goods/services provider. If I can answer Los Alamitos any further questions, please feel free to contact me during normal business Newport Beach hours. Orange Placentia Jessica Vu Contracts, Purchasing & Materials Management Santa Ana Seal Beach c: Procurement File Stanton Tustin Villa Park County of Orange Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. NH&A. L L Canti-virus, firewalls & security solutions Award Protest Request October, 13, 2022 To: Purchasing Department Jessica Vu Orange County Sanitation District Reference: Invitation #E-2022-1363BD Project Title: FortiGate Firewall Upgrade Attached: Bid Confirmation #306103; E-2022-1363BD BID RECAP.xlsx; 20221013125934013 E-2022 1363BD NOIA 10 13 2022; E-2022-1363BD We, NH&A LLC, are protesting the awardee of the referenced bid. As understood, the award criteria was based solely on the lowest priced bidder. As seen on the results document — NH&A's subtotal was the lowest out of all bidders at $226,697.76. The document states this as the basis for award. NH&A explicitly stated in our submission #306103, that line item #1 was inclusive of the Enterprise Protection subscription (line item #2). If NH&A were to have slit the pricing into line #2, the subtotal cost would remain the same regardless. NH&A should not have been classified as non -responsive as we provided reason for the item. Please feel free to reach out with any questions or comments. We're looking forward to hearing back at your earliest convenience. Best Regards, Nancy Ramos NH&A LLC 790 Juno Ocean Walk, Ste 502-C Phone: (561) 622-2283 North Palm Beach, FL 33408-1121 USA Fax: (888) 602-1196 E-Mail: salesCcDnha.com Web: http://www.nha.com 10844 Ellis Avenue Fountain Valley, CA 92708 OC6SAN714.,,2.241, ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov October 14, 2022 SUBJECT: Revised Notice to Award for Specification No. E-2022-1363BD Fortigate Firewall Upgrade Serving: Anaheim Brea Buena Park This notice supersedes the Notice of Intent to Award issued by the Orange County Sanitation District (OC San) on October 13, for the above -referenced Project. After further Cypress evaluation of the bids, OC San has determined that there was an error in the initial evaluation of the bid submittals. OC San hereby revises its previous recommendation and Fountain Valley will recommend awarding the bid to NH&A LLC, subject to approval by the OC San Board of Directors. Fullerton Garden Grove i Huntington Beach Irvine Ruth Zintzun La Habra Purchasing and Contracts Manager La Palma C: Procurement File Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park County of Orange Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. Page 1 of 2 (Irper th' Opposition to Bid Award 18 October 2022 Orange County Sanitation District Attn: Purchasing Department (Jessica Vu) 10844 Ellis Avenue Fountain Valley, CA 92708 Reference: Bid Invitation #E-2022-1363BD FortiGate Firewall Upgrade Dear OCSan Procurement, Xpert Solutions Inc. (Xpert) is respectfully submitting this statement of opposition to the protest submitted by the reseller from Florida (NH&A LLC) and we are submitting our protest to the award to NH&A LLC. Xpert has the following concerns: 1. The pricing from the reseller from Florida (NH&A LLC) may not be in accordance with all applicable laws and current applicable policies of the manufacturer (Fortinet). This can be verified by NH&A LLC providing a valid Fortinet FTQ# which is dated before the bid closing, 2. The pricing from the reseller from Florida (NH&A LLC) is very likely invalid and may not be able to be honored by NH&A LLC. This concern has been confirmed by the equipment Manufacturer (Fortinet). 3. The proposed equipment from the reseller from Florida (NH&A LLC) may be from the Gray Market or may be used equipment despite the reseller (NH&A LLC) being an authorized reseller. This is also the concern of the Manufacturer (Fortinet). The terms of the invitation to bid state in section 2.12 Price Confirmation — "Prior to the award of the Contract, the apparent low Bidder will need to confirm that each line item is at the correct pricing." And in section 3.132. "The Vendor confirms to have sourced all products submitted in this offer from the listed manufacturer in Exhibit A through Authorized Channels only, in accordance with all applicable laws and current applicable policies of the manufacturer at the time of purchase." Xpert believes the pricing submitted by NH&A LLC is not in accordance with all applicable laws and current applicable policies of the manufacturer. Xpert and Fortinet are asking OCSan to have the reseller (NH&A LLC) provide to OCSan and to Fortinet the valid FTQ quote number from Fortinet to prove that a. the equipment is not from the gray market and not used equipment and b. it will prove whether or not NH&A LLC has authorized pricing from Fortinet. Page 2 of 2 The terms of the invitation to bid also state in section 2.2 Bid Pricing — "All pricing and evaluative material contained in submitted bids must be valid through the Contract term. At no time shall the bids be altered." Xpert and Fortinet have reason to believe that the pricing submitted by NH&A LLC is invalid. Even though the reseller (NH&A LLC) is an authorized Fortinet reseller, the believes the equipment that NH&A LLC may be attempting to sell to OCSan equipment from the gray market or possibly used equipment. Xpert is requesting that OCSan ask NH&A LLC to provide to OCSan and to Fortinet a valid FTQ quote number which is authorized by Fortinet. If NH&A LLC cannot provide to OCSan and to Fortinet the valid FTQ quote number from Fortinet, then OCSan is a grave risk of sourcing gray market and/or used equipment. Finally, Xpert believes we have submitted the lowest authorized pricing to OCSan and that the bid should be awarded to Xpert. Sincerely, thon nes President Xpert Solutions, Inc. Xpert Solutions, Inc. 65 Enterprise p: (949) 218-2100 Aliso Viejo, CA f: (949) 218-2177 92656 w: www.xpert.com OC6SAN ORANGE COUNTY SANITATION DISTRICT October 31, 2022 Anthony L. Jones Xpert Solutions, Inc. 65 Enterprise Aliso Viejo, CA ton y.jon es(axpert.com SUBJECT: E-2022-1363BD Fortigate Firewall Upgrade Award Recommendation Protest The Orange County Sanitation District (OC San) received an official protest from Xpert Solutions, Inc. on October 18, 2022. OC San reviewed the protest documentand conducted its evaluation into the claim that the low bidder, NH&A LLC provided potentially invalid pricing that may not be honored, pricing that may not be in accordance with applicable laws and current practices of the manufacturerand is proposing equipment that may be used or from a Gray Market. OC San has concluded that none of these claims have merit. Therefore, OC San shall proceed with the intentto award NH&A LLC. as the vendorfor the subject contract. All affected parties shall be notified in writing of OC San's determination of the protest. Ruth Zintzun Purchasing Manager Attachments: Award Recommendation Protest Letter — Xpert Solutions, Inc. October 18, 2022 Page 1 of 2 (Irper th' Opposition to Bid Award 18 October 2022 Orange County Sanitation District Attn: Purchasing Department (Jessica Vu) 10844 Ellis Avenue Fountain Valley, CA 92708 Reference: Bid Invitation #E-2022-1363BD FortiGate Firewall Upgrade Dear OCSan Procurement, Xpert Solutions Inc. (Xpert) is respectfully submitting this statement of opposition to the protest submitted by the reseller from Florida (NH&A LLC) and we are submitting our protest to the award to NH&A LLC. Xpert has the following concerns: 1. The pricing from the reseller from Florida (NH&A LLC) may not be in accordance with all applicable laws and current applicable policies of the manufacturer (Fortinet). This can be verified by NH&A LLC providing a valid Fortinet FTQ# which is dated before the bid closing, 2. The pricing from the reseller from Florida (NH&A LLC) is very likely invalid and may not be able to be honored by NH&A LLC. This concern has been confirmed by the equipment Manufacturer (Fortinet). 3. The proposed equipment from the reseller from Florida (NH&A LLC) may be from the Gray Market or may be used equipment despite the reseller (NH&A LLC) being an authorized reseller. This is also the concern of the Manufacturer (Fortinet). The terms of the invitation to bid state in section 2.12 Price Confirmation — "Prior to the award of the Contract, the apparent low Bidder will need to confirm that each line item is at the correct pricing." And in section 3.132. "The Vendor confirms to have sourced all products submitted in this offer from the listed manufacturer in Exhibit A through Authorized Channels only, in accordance with all applicable laws and current applicable policies of the manufacturer at the time of purchase." Xpert believes the pricing submitted by NH&A LLC is not in accordance with all applicable laws and current applicable policies of the manufacturer. Xpert and Fortinet are asking OCSan to have the reseller (NH&A LLC) provide to OCSan and to Fortinet the valid FTQ quote number from Fortinet to prove that a. the equipment is not from the gray market and not used equipment and b. it will prove whether or not NH&A LLC has authorized pricing from Fortinet. Page 2 of 2 The terms of the invitation to bid also state in section 2.2 Bid Pricing — "All pricing and evaluative material contained in submitted bids must be valid through the Contract term. At no time shall the bids be altered." Xpert and Fortinet have reason to believe that the pricing submitted by NH&A LLC is invalid. Even though the reseller (NH&A LLC) is an authorized Fortinet reseller, the believes the equipment that NH&A LLC may be attempting to sell to OCSan equipment from the gray market or possibly used equipment. Xpert is requesting that OCSan ask NH&A LLC to provide to OCSan and to Fortinet a valid FTQ quote number which is authorized by Fortinet. If NH&A LLC cannot provide to OCSan and to Fortinet the valid FTQ quote number from Fortinet, then OCSan is a grave risk of sourcing gray market and/or used equipment. Finally, Xpert believes we have submitted the lowest authorized pricing to OCSan and that the bid should be awarded to Xpert. Sincerely, thon nes President Xpert Solutions, Inc. Xpert Solutions, Inc. 65 Enterprise p: (949) 218-2100 Aliso Viejo, CA f: (949) 218-2177 92656 w: www.xpert.com Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2637 Agenda Date: 12/14/2022 Agenda Item No: 7. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: NEW HEADQUARTERS AND INDUSTRIAL CONTROL SYSTEM NETWORK EQUIPMENT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Purchase Order to ePlus Technology, Inc. for the purchase of information technology hardware (New Headquarters & Industrial Control System Network Equipment), Specification No. E-2022-136013D, for a total amount not to exceed $428,865, plus applicable sales tax and shipping; and B. Approve a contingency in the amount of $42,886 (10%). 1 :(r1:19111 Z I III] Orange County Sanitation District (OC San) has commissioned, and is in the process of executing, Project No. P1-128 to build a new Headquarters Building (HQ) across Ellis Avenue from Plant No. 1 in Fountain Valley. New data networking equipment is required to connect the computers, telephones, printers, and other network devices to the campus network, industrial control system (ICS) network, and the internet. 1:7=111A%1L11&3IF_1Z117_1:1I&I • 24/7/365 treatment plant reliability • Ensure the public's money is wisely spent • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard • Protect OC San assets PROBLEM Network connectivity is required for OC San's network devices such as computers, telephones, printers, and other network devices for all the office, cubicles, conference rooms, and other facilities in the new HQ Building. Orange County Sanitation District Page 1 of 3 Printed on 12/6/2022 powered by LegistarTIM File #: 2022-2637 Agenda Date: 12/14/2022 Agenda Item No: 7. PROPOSED SOLUTION Cisco Catalyst 9000 series network switches were chosen for their next -generation connectivity and seamless compatibility with the OC San HQ Building and ICS networks. This platform provides the latest networking technology with scalability, availability, and security. The proposed switch selections will expand the existing networks to the new HQ Building. TIMING CONCERNS Prompt procurement execution is critical with the target HQ Building completion date of December 2023. All equipment vendors are currently affected by supply -chain delays. Proper implementation and maintenance of the new network devices and segments is imperative for the continued support and safety of Plant operations. RAMIFICATIONS OF NOT TAKING ACTION New and old buildings require network connectivity. Any computers and network devices will not be allowed to access networks for the staff to perform job duties should this new network infrastructure in the HQ Building not be acquired and implemented. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION A Notice Inviting Bids was issued on October 3, 2022 via PlanetBids. Bids were due on November 1, 2022. OC San received seven (7) bids valid for 180 calendar days from the bid opening date. Two bids are non -responsive due to not returning required documentation and one bid is considered non- responsive by responding they are not currently an authorized distributor, per the Specification. Notice of Intent to Award was issued on November 8, 2022. The following is a list of the firms that submitted a bid. Company Name Bid Determination ePlus Technology $428,864.85 Responsive Saitech Inc $437,204.00 Responsive Axelliant LLC $443,459.85 Responsive Sterling Computers Corporation $518,172.21 Responsive D1 Networks, Inc $584,382.97 Non -Responsive Kambrian Corporation $602,357.86 Non -Responsive Agility Software Solutions LLC $617,569.61 Non -Responsive Based on these results, staff recommends approving the Purchase Order to ePlus Technology. The term of this Purchase Order will begin upon the effective date of the Notice to Proceed. Orange County Sanitation District Page 2 of 3 Printed on 12/6/2022 powered by LegistarTM File #: 2022-2637 CEQA N/A FINANCIAL CONSIDERATIONS Agenda Date: 12/14/2022 Agenda Item No: 7. This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital Program (M-MC-IT)). ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A Orange County Sanitation District Page 3 of 3 Printed on 12/6/2022 powered by LegistarT" Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2411 Agenda Date: 12/14/2022 Agenda Item No: 8. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUE PROGRAM RATE STUDY GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District's 2022 Wastewater Rates, Fees, and Charges Study completed by HDR Engineering, Inc. BACKGROUND To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (OC San) engaged an engineering consulting firm, HDR Engineering, Inc., to provide an independent analysis of OC San's cash flow modeling and a comprehensive cost of service study. The study demonstrates that OC San's proposed fees are appropriate and reasonable and will support its projected capital and operating requirements. RELEVANT STANDARDS • Stable rates based on a validated cost structure which minimizes unforeseen rate increases PROBLEM OC San's Board of Directors approved a five-year rate schedule which expires at the end of the current fiscal year. PROPOSED SOLUTION Develop a new proposed five-year rate schedule based on the 2022 rate study completed by HDR Engineering, Inc. TIMING CONCERNS Based on the 2022 rate study, staff will be developing a proposed five-year rate schedule, beginning in July 2023, for Administration and Board consideration in February 2023. Orange County Sanitation District Page 1 of 2 Printed on 12/6/2022 powered by LegistarTIM File #: 2022-2411 Agenda Date: 12/14/2022 Agenda Item No: 8. RAMIFICATIONS OF NOT TAKING ACTION Sewer service fees will be insufficient to support capital and operating requirements. 1;jNIf] :Zd6]►YilJil11i9441*e7_1VI7_T"IIf] ►&' December 2017 - Received and filed the OC San 2017 Wastewater Revenue Program Rate Study completed by Carollo Engineers. ADDITIONAL INFORMATION Based on the results of the rate study completed by HDR Engineering, Inc., OC San staff is in the process of recommending a five-year revenue program which includes an increase on average of 3.5 percent annually for the next five years. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Orange County Sanitation District Wastewater Rates, Fees, and Charges Study • Presentation Orange County Sanitation District Page 2 of 2 Printed on 12/6/2022 powered by LegistarTM DRAFT REPORT Wastewater Rates, Fees, and Charges Study Orange County Sanitation District Orange County, CA November 2022 DU 15a FN November 21, 2022 Ms. Angela Brandt Financial Management Division and Revenue/Payroll Supervisor Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708 Subject: Wastewater Rates, Fees, and Charges Study - Draft Dear Ms. Brandt: HDR Engineering Inc. (HDR) was engaged to conduct a comprehensive cost of service wastewater rate, fees, and charges study (Study) by the Orange County Sanitation District (OC San). The Study includes development of cost based Regional Wastewater Service rates, Capital Facility Capacity Charge, Supplemental Capital Facility Charge, and ancillary charges provided to OC San customers over a 5-year period beginning July 1, 2023. OC San outlined several goals to accomplish with this Study. This included the establishment of proposed rates at sufficient levels to fund annual operations and maintenance expense and necessary capital infrastructure that are cost -based and proportional to customers. The Study also reviewed and updated the capital facility charges to cost -based levels. The study also updated miscellaneous fees and charges to cost -based levels that reflect the costs associated with providing the specific service. Finally, this report provides the basis for developing and implementing rates that are cost -based, defensible, and equitable to OC San's customers. This report details the steps and methodology used in the development of the rates and charges for the next five years. The Study and analysis were done using generally accepted rate setting principles as described in the Water Environmental Federation Manual of Practice 27. We appreciate the opportunity to work with OC San management and staff in the development of the Study. Sincerely yours, HDR Engineering, Inc. Shawn Koorn Associate Vice President hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 FN Orange County Sanitation District Comprehensive Wastewater Rate Study Executive Summary HDR completed a comprehensive cost of service wastewater rate, fee, and charges study (Study) for Orange County Sanitation District (OC San). The Study was completed using generally accepted rate and fee setting principles consistent with the methods outlined in the Water Environmental Federation Manual of Practice number 27. The goal of a comprehensive rate and fee study is to establish proportional rates that reflect the cost to the utility to serve its customers. The first step in the study was to conduct a revenue requirement analysis. A revenue requirement analysis compares the utilities revenue to the utility's operating expenses and capital funding approach and determines if current rate levels are sufficient or if a rate adjustment is necessary to responsibly operate and maintain the utility. An important part of a revenue requirement is to set rates that maintain the utilities financial policies and legal requirements. The focus of the study is on the five-year rate setting period of 2023-24 through 2027-28. The revenue requirement extends beyond the rate setting period matching the same time frame of OC San's capital plan which extends to FY 2031-32. The extended view of the revenue requirement helps to provide an advanced look at what OC San can expect beyond the near term. The chart below represents the revenue requirement, with the bars representing OC San's costs and the lines representing OC San's revenue. The red line represents the revenue with an annual increase of 3.5% and the black line is the projected revenue with no rate adjustments. $700 $600 $500 o $400 $300 $200 $100 Revenue Requirement $0 �� 2023 ZF� 202� 2�� 202� Z 20T 20 201-� ti �02� 2�� 2029?,0� 203�?, �03132 Total O&M Expenses Debt Service (P+I) Transfers to Reserves Total Rate Funded Capital Total Revenues Revenue Before Rate Adjustment The chart above shows, in all but the last year, OC San's expenses exceed the estimated revenue OC San is expected to collect each year. The shortfall in annual revenue is expected to be covered by OC San's available available reserve balances. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 ES-1 FN Orange County Sanitation District Comprehensive Wastewater Rate Study OC San has two policies that are Reserve Fund particularly relevant to the revenue $1,000 requirement, a target ending reserve $900 Fund Balance $soo balance and debt service coverage (DSC). $700 c $600 OC San currently has approximately $964 $500 Target Reserve Balance million in reserve funds. One of OC San's $400 $300 objectives for the revenue requirement $200 00 analysis was to set rates at a level that $1$0 would facilitate a controlled drawdown of the available reserve balance over the extended revenue requirement period. The chart to the right shows the projected ending fund balance reaching OC San's target fund balance. DSC is a measure of financial health and their ability to make debt service payments and is often expressed as a ratio of funds available after paying for operations and maintenance compared to their annual debt service payment. A typical minimum DSC ratio 1.25, which means after operations and maintenance there are 1.25 times their debt service payment. OC San has an exceptionally strong DSC ratio which exceeds 4.0 over the extended analysis period with the assumed 3.5% annual rate adjustments. The next step in the comprehensive rate study is the cost of service analysis. HDR used generally accepted cost allocation methods in the allocation of OC San's costs to Volume, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS). The results of the analysis were the unit costs by volume and by pound. The chart below shows the current unit cost compared to the results of the cost of service. These unit charges are the basis for the Industrial/Permit user The cost of service analysis also determines OC San's Equivalent Dwelling Unit (EDU) charge for the General User customers. > yo yA y00 ye yo 3ti Q,vo�y Q,vo�� Q,vo�1 00 Debt Service Coverage Ratio 6 5 After Rate Adjustment 4 3 Before Rate Adjustment 2 1 0 Average Unit Costs $/1,000 gal I $/Ibs BOD/TSS ■ Current Rates ■ Proposed Rates BOD TSS Volume Strength hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 ES-2 FN Orange County Sanitation District Comprehensive Wastewater Rate Study General User Rate- EDU Current Rate FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Single Residence Multifamily Another task in the study was to update the Capital Facility Capacity Charge (CFCC). CFCC Base Charge This analysis is different from development $7,000 of user rates in that it is not based on OC San's cost to continue operating but rather a $6,000 means of maintaining equity among new and $5,000 existing OC San customers. OC San's ability to serve new customers requires them $4,000 to already have excess capacity or for them $3,000 to build new capacity to serve new customers. The CFCC is calculated based $2,000 on OC San's existing and future $1,000 infrastructure costs expresses as a unit of capacity or EDU. The CFCC analysis $0 determined that the CFCC was $5,568 which Current FY 2023-24 is only slightly less than the existing charge Proposed of $5,719. Given the closeness of the calculated rate and the current rate it was decided that the charge would remain the same for FY 2023- 24, forgoing the annual adjustment for inflation. This concludes the executive summary portion of the Study. The executive summary provides an overview of the study as a whole. The next sections of the report provide a more detailed explanation of the Study and the methods used in the development of the analysis. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 ES-3 FN Orange County Sanitation District Comprehensive Wastewater Rate Study Contents 1 Comprehensive Wastewater Rate Study 1.1 Introduction............................................................................................................ 1.2 Key Objectives of the Study.................................................................................... 1.3 Overview of the Rate Study Process....................................................................... 1.4 Development of the Revenue Requirement Analysis ............................................... 1.4.1 Determination of Time Period and Method of Accumulating Costs .............. 1.4.2 Projection of Revenues.............................................................................. 1.4.3 Projection of Operation and Maintenance Costs ......................................... 1.4.4 Projection of Debt Service Payments.......................................................... 1.4.5 Projection of Wastewater Capital Improvement Projects Funded from Rate Revenues.................................................................................................. 1.4.6 Transfers to Reserves................................................................................ 1.4.7 Summary of the Wastewater Revenue Requirements ................................. 1.4.8 Review of Debt Service Coverage Ratios ................................................... 1.4.9 Summary of Reserve Levels...................................................................... 1.4.10 Revenue Requirement Summary and Recommendations ........................... 1.5 Development of the Cost of Service Analysis.......................................................... 1.5.1 Objectives of a Cost of Service Analysis ..................................................... 1.5.2 Overview of the Cost of Service Analysis .................................................... 1.5.3 Major Assumptions of the Cost of Service Analysis .................................... 1.5.4 Cost of Service Results.............................................................................. 1.5.5 Cost of Service Conclusions and Recommendations .................................. 1.5.6 Summary of the Cost of Service Analysis ................................................... 1.6 Development of the Wastewater Rate Designs....................................................... 1.6.1 Review of the Overall Rate Adjustments..................................................... 1.6.2 General User Rates................................................................................... 1.6.3 Industrial/Permit User Rates....................................................................... 1.6.4 Wastehauler Rates..................................................................................... 1.7 Summary of Wastewater Rate Study...................................................................... 1.8 Rate Survey........................................................................................................... 2 Capital Facility Charges 2.1 Capital Facility Capacity Charge Study ...................... 2.1.1 Introduction................................................... 2.1.2 CFCC Study Overview .................................. 2.1.3 CFCC Calculation ......................................... 2.1.4 CFCC Summary of Net Allowable Calculation 2.1.5 CFCC Implementation ................................... 2.2 Supplemental Capital Facility Capacity Charge Study 2.3 Annexation Charge Study .......................................... 3 Rebate Program 3.1 Introduction............................................................... 4 Miscellaneous Fees and Charges 4.1 Introduction............................................................................................... 4.2 Administrative Fees and Charges.............................................................. 4.3 Industrial Discharger, Source Control and Non-compliance Sampling Fees hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 1 1 2 2 2 3 3 4 .4 .5 .5 .5 .6 .7 .7 .7 .8 12 13 13 13 14 14 15 15 16 17 17 18 18 18 20 24 24 27 28 30 32 32 33 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 4.4 Inspection Fees ......................... 4.5 Non -Compliance Sampling Fees Tables Table 1-1. Summary of the Capital Improvement Plan ($000,000)............ Table 1-2. Summary of the Revenue Requirement Analysis ($000,000)... Table 1-3. Debt Service Coverage Ratio .................................................. Table 1-4. Allocation of Functional Categories ......................................... Table 1-5. Summary of the Allocations..................................................... Table 1-6. Summary of the Revenue Requirement Allocation ($000,000s) Table 1-7. Summary of the Unit Costs............................................................................ Table 1-8. Summary of the Proposed Revenues and Adjustments to Rates ($1,000,000) Table 1-9. Single Family and Multi -family Rates.............................................................. Table 1-10. Industrial/Permit User................................................................................... Table 1-11. Wastehauler Rates...................................................................................... Table 1-12. Wastehauler Rates per Gallon...................................................................... Table 1-13. Survey of Other Wastewater Utilities............................................................ Table 2-1. Present Capital Facilities Capacity Charge'),(2) ............................................... Table 2-2. CFCC - Planning Data Table 2-3. CFCC - Equivalent Dwelling Units.................................................................. Table 2-4. Summary of CFCC per EDU........................................................................... Table 2-5. CFCC per EDU Converted to 1,000 Square Feet ............................................ Table 2-6. Present and Calculated Capital Facilities Capacity Charge .............................. Table 2-7. Proposed Capital Facilities Capacity Charge'),(2)............................................. Table 2-8. Calculated Supplemental Capital Facilities Capacity Charge0),(2) ..................... Table 2-9. Present and Calculated Supplemental Capital Facilities Capacity Charge0),(2) . Table 2-10. Present and Calculated Supplemental Capital Facilities Capacity ChargeM,(2) Table 2-11. Present Annexation Charge0)........................................................................ Table 2-12. Present and Calculated Annexation Charge ) ................................................ Table 4-1. Administrative Fees and Charges Related to Permittees per Year ................... Table 4-2. Industrial Discharger, Source Control and Non-compliance Sampling Fees..... Table 4-3. Inspection Fees for Single Connection............................................................ Table 4-4. Non -Compliance Sampling Fees..................................................................... hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 34 34 .4 .5 ,.6 10 10 11 13 14 15 15 16 16 17 19 21 22 24 25 26 26 27 28 28 28 29 33 34 34 35 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1 Comprehensive Wastewater Rate Study 1.1 Introduction HDR Engineering Inc. (HDR) was retained by the Orange County Sanitation District (OC San) to conduct a comprehensive cost of service wastewater rate, fee, and charges study (Study). The purpose of the Study is to develop cost -based rates and fees for the next five year period. The purpose of conducting a cost of service study such as this, is to establish cost -based and proportional rates for OC San's customers and adhere to the requirements for setting rates according to State law under Proposition 218 (Prop 218). The objective of this Study was to collaborate with OC San staff to develop a wastewater financial plan and cost -based rates necessary to meet the operation and maintenance (O&M) expenses and the capital improvement plan for OC San. This Study determined the adequacy of the existing wastewater rates and provides the framework for future revenue (rate) adjustments. 1.2 Key Objectives of the Study OC San had a number of key objectives in developing the Study. These key objectives were as follows: • Set rates in a manner that is consistent with the principles and methodologies established by the Water Environment Federation Manual of Practice number 27. • Develop OC San's revenue requirement analysis to provide prudent and adequate funding levels for O&M and capital infrastructure. • Develop a ten-year financial planning model (revenue requirement) that provides prudent funding levels for O&M activities along with the capital infrastructure identified in OC San's capital improvement planning documents. • Develop a cost allocation methodology that proportionally distributes the cost of providing wastewater service to OC San's customers. • Develop proposed wastewater rates for a five-year period which are cost -based, proportional, and legally defendable. • Update OC San's Capital Facility Capacity Charges (CFCC) and Supplemental Capital Facility Capacity Charges (SCFCC) to conform to legal requirements • Update other miscellaneous charges including permit and sampling charges. These key objectives provided guidance as the Study was developed and progressed. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.3 Overview of the Rate Study Process Wastewater rates must be set at a level where a utility's annual operating and capital expenses are met with the revenues received from customers. This is an important point, as failure to achieve this objective may lead to insufficient funds to maintain system integrity. To evaluate the adequacy of the existing rates, comprehensive rate studies are often performed. A comprehensive wastewater rate study consists of three interrelated analyses. Figure 1 provides an overview of these analyses. Revenue Requirement I Analysis Cost of Service Analysis Rate Design Analysis Compares the revenues of the utility to its expenses to determine the overall level of rate adjustment Proportionally distributes the revenue requirement between the identified customer classes of service Design rates for each class of service to meet the revenue needs of the utility and the cost of service results The above framework was utilized in the development of the OC Sans Study. Provided below is a summary of the analyses undertaken and our findings, conclusions, and recommendations. 1.4 Development of the Revenue Requirement Analysis The development of revenue requirement analysis is the first step in the comprehensive wastewater rate study process. A revenue requirement analysis determines the adequacy of the overall level of OC San's wastewater rates. From this analysis, a determination can be made as to the level of the revenue (rate) adjustments needed to provide adequate and prudent funding for projected operating and capital needs. 1.4.1 Determination of Time Period and Method of Accumulating Costs The initial step in calculating the revenue requirement for OC San was to establish a "test period", or time frame of reference for the revenue requirement analysis. For this particular study, the focus of the revenue requirement was for the 5-year projected time period of FY 2023-24 through FY 2027-28. However, the model developed by HDR projects rates over a 10-year period to take into consideration future revenue needs and plan for future capital improvements. By reviewing costs over an extended time period, OC San can anticipate and plan around any significant changes or needs in operating and capital requirements. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 FN Orange County Sanitation District Comprehensive Wastewater Rate Study The second step in determining the revenue requirements for OC San was to determine the basis of accumulating costs. In this case, a "cash basis" revenue requirement methodology was utilized. This methodology includes both operating and capital costs within the total revenue requirements and was the methodology used in previous rate studies completed for OC San. 1.4.2 Projection of Revenues The first step in developing the revenue requirement was to Rate Revenue develop a projection of rate FY 2023-24 ($000,000s) revenues, at present rate levels. In General developing this portion of the users, analysis, the customer billing units $321.50 for the historical FY 2020-21 were reviewed and then escalated to reflect OC San's estimated billing Industrial/Permit, units for the projected time period of $14.20 FY 2023-24 through FY 2031-32. OC San charges its primary Wastehaulers, customer type, General Users, a $0.75 rate based on an Equivalent Dwelling Unit (EDU) basis. Industrial/Permit user are charge based on their actual volume of wastewater and calculated pounds of Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS). Wastehaulers, the final customer class, are a much smaller customer group and are charged by the gallon of wastewater discharged into the system. The billing units for each customer group were multiplied by the applicable current (present) rates, which included the most recent rate adjustment implemented for the fiscal year 2022-23, to develop the projection of annual rate revenues over the 5-year period. This calculation resulted in annual rate revenues of approximately $336 million in FY 2023-24. OC San also has several other revenue streams in addition to the annual rate revenue received. The other, or miscellaneous revenue, for FY 2023-24 includes property tax of $112 million, Irving Ranch Water District (IRWD) of $16 million, and Santa Ana Water Project Authority (SAWPA) $3 million. IRWD and SAWPA are customers of OC San, however, their wastewater rates are established by contracts rather than through this Study. 1.4.3 Projection of Operation and Maintenance Costs The revenue requirement projected the operation and maintenance (O&M) expenses by utilizing OC San's most recent preliminary budgeted expenses and escalating them over the ten-year period. The annual rate of inflation was estimated on average to be 3% per year. Total current (FY 2023/24) O&M expenses for OC San are approximately $210 million. With escalation, O&M expenses are projected to increase to approximately $236 million in FY 2027/28. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 3 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.4.4 Projection of Debt Service Payments OC San's cash basis revenue requirement includes a component for annual debt service payments. Debt service payments relates to annual debt service obligations (principal and interest) when capital projects are financed through long-term debt. OC San has several outstanding debt issues used to fund prior capital expenditures. For the fiscal year 2023-24 principal and interest payments are approximately $68.6 million according to debt schedules provided by OC San. In the development of the capital funding analysis, no additional debt issuances assumed or were there any refunding of existing outstanding debt. 1.4.5 Projection of Wastewater Capital Improvement Projects Funded from Rate Revenues The focus of this portion of the analysis is on the funding of capital improvement projects. During the projected five-year period OC San has capital improvement projects for their collection system and treatment plant which total approximately $1.663 billion. These capital projects were provided by OC San staff as outlined in the current capital improvement plan. The funding of OC San's capital program has been historically funded through a combination of current revenues, reserve funds, capital facility charges, and long-term debt. The revenue requirement assumes the $1.663 billion in capital expenditures will be funded using $1.388 billion of current revenue, $98 million of capital facility charge revenue, and the remaining from reserves, assumed savings, and deferrals. A summary of the funding plan is shown below in Table 1-1. Table 1-1. Summary of the Capital Improvement Plan ($000,000) Capital Improvement Projects Capital Expenditures $329 $312 $322 $323 $325 $1,611 Future Renewal and Replacement 10 2 6 19 16 52 Total Capital Improvement Projects $339 $314 $328 $342 $340 $1,663 Capital Funding CIP Savings & Deferrals $24 $32 $27 $49 $45 $177 CFCC & SCFCC Revenue 19 20 20 20 20 98 Rate Revenue and Reserve Funds 297 262 281 273 275 1,388 Total Capital Funding $339 $314 $328 $342 $340 $1,663 As noted previously, no additional long-term debt is being issued over the Study time period to fund planned capital improvement projects. OC San has specifically developed a capital funding analysis that utilizes available reserves to draw reserve balances to target levels and not issue additional long- term debt. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 4 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.4.6 Transfers to Reserves OC San is self -insured and contributes $3.85 million to their insurance reserve fund annually. Additionally OC San also has a transfer for equity purchases of $3.50 million in FY 2023-24. 1.4.7 Summary of the Wastewater Revenue Requirements The above components of the revenue requirement are summed to develop the overall wastewater revenue requirements for OC San. Provided below in Table 1-2 is a summary of OC San's revenue requirement analysis for FY 2023-24 - FY 2027-28. Table 1-2. Summary of the Revenue Requirement Analysis ($000,000) Revenues - Rate Revenues Other Revenue $336.4 $337.4 $338.4 $339.4 $340.3 149.2 138.0 142.7 146.6 150.9 Total Revenues $485.7 $475.4 $481.1 $485.9 $491.3 Expenses - Total O&M Expenses Total Rate Funded Capital I'] Debt Service (P+I) Transfers to Reserves Total Rev. Requirement Draw Down of Fund Balance Deficiency of Funds Bal./Defic. As a % of Rates Assumed Rate Adjustment Additional Revenue from Rate Adjust. $209.9 $216.2 $222.7 $229.4 $236.2 296.8 262.3 $280.9 273.0 274.9 $68.6 68.6 $68.6 68.5 72.7 7.4 3.9 3.9 3.9 3.9 $582.6 $550.9 $576.1 $574.7 $587.6 ($85.2) ($51.4) ($58.2) ($38.7) ($32.5) ($11.8) ($24.0) ($36.8) ($50.1) ($63.9) 3.5% 7.1 % 10.9% 14.8% 18.8% 3.50% 3.50% 3.50% 3.50% 3.50% $11.8 $24.0 $36.8 $50.1 $63.9 The results shown in Table 1-2 indicate a deficiency of nearly 18.8% over next five years. It should be noted that these deficiencies are cumulative and any rate adjustments in the initial years will reduce the overall deficiency in the remaining years. This deficiency also reflects the use of $266 million of reserve funds over the time period to reduce the impact to customers while also drawing down fund balance to minimum target levels. 1.4.8 Review of Debt Service Coverage Ratios As noted, OC San has debt financed significant portion of past capital improvements using Certificates of Participation (COP). COPS are repayment obligations, rather than a traditional bonds or loans. Though COPS are technically different than a bond, they do function in the same way where OC San hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 F)l Orange County Sanitation District Comprehensive Wastewater Rate Study pays the holder of the COP annual payments for principal and interest on the outstanding balance. The COP agreements require OC San to maintain a minimum Debt Service Coverage Ratio of 1.25. Table 1-3. Debt Service Coverage Ratio Debt Service Coverage Minimum Debt Service Coverage Before Rate Adjustment Debt Service Coverage After Rate Adjustment 1.25 4.02 3.78 3.77 3.75 3.51 4.19 4.13 4.30 4.48 4.39 The calculation of debt service coverage ratios in the Study projects OC San to be significantly higher than the 1.25 minimum requirement throughout the analysis period and reflect the strong financial health of OC San. As a point of reference, HDR is not acting in the capacity of a financial advisor. The calculation of the debt service coverage ratio is for illustrative purposes only. OC San should work with their financial advisor or bond counsel to calculate the debt service coverage for financial purposes. 1.4.9 Summary of Reserve Levels Reserve funds are critical to a utility's operations and adequate levels of reserve reflect prudent financial management. Over the years OC San has refined the target reserve balance to best reflect their financial needs. The target balance is a combination of calculations that represent the considerations when establishing minimum target fund balances. These considerations include, cashflow to pay the utilities expenses, funding for capital $l,000 Reserve Fund „ projects, annual debt service Repl&Refurb $900 payments, self-insurance, $800 - - . _ _ _ " _ " Self Funded Insurance @ $100M and other unforeseen situations or emergencies. $700 M Debt Svc@10% Outstanding COP For the 2023-24 fiscal year, $600 -"" _"-"_ ____" �50%average ten-year ClP Balance the target fund balance is $506 . � 100% N ex[ Yea r AVG COP Svc. $555 million, while the 2023- $406 24 fiscal year beginning fund $300 �10% Next Year Operating Expense balance Is approximately $zoo �50% Next Year Operating Expense $964 million. $100 - -- Fund Balance One of OC San's objectives $0 ■ ■ ■ ■ ■ - -- Target Reserve Balance for the Study was to draw FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 down existing fund balance to the target minimum levels over a 10-year period. The chart above shows the projected ending fund balance sloping down over the five years of the analysis with the goal of reaching the target balance in the next ten years. As noted, approximately $266 million of reserves are being used to fund capital improvements as well as transition rates to cost -based levels over the projected time period. After adding back projected accumulated interest earnings, in 2027-28 fiscal year the fund balance is projected to reduce by approximately $200 million. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 C FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.4.10 Revenue Requirement Summary and Recommendations The revenue requirement analysis undertaken herein was developed using generally accepted rate making principles. In establishing the revenue requirement analysis consideration was given the proper and adequate funding of OC San's operating and capital costs. The revenue requirements as developed herein are reflective of the OC San's current financial policies and rate philosophies. Based on the results of the revenue requirement analysis, it is recommended that OC San adjust the overall level of rate revenues by 3.5% annually in FY 2023-24 through FY 2027-28. As noted, this assumes the use of available reserves to fund the annual differences between total annual expenses and revenues. In total, approximately $266 million is projected to be needed to prudently fund the O&M and capital needs over this projected five year period. 1.5 Development of the Cost of Service Analysis A cost of service analysis is concerned with the proportional distribution of the total revenue requirement between the customer classes of service. For this Study, the classes of service were identified as general user, industrial/permit user, and wastehaulers. The previously developed revenue requirement analysis was utilized in the development of the cost of service analysis. 1.5.1 Objectives of a Cost of Service Analysis There are two primary objectives in conducting a cost of service analysis: • Proportionally distribute the revenue requirement between the customer classes of service • Derive average unit costs for subsequent rate designs The objectives of the wastewater cost of service analysis are different from determining the revenue requirement. As noted above, the revenue requirement analysis determines the utility's overall financial needs, while the cost of service study determines the proportional manner to collect the financial needs from the identified customer classes of service. The second rationale for conducting a cost of service analysis is to provide the basis for designing the proposed rates that reasonably reflect the costs incurred by OC San to provide service. Wastewater utility incurs costs to convey and treat the wastewater to the degree required by government regulation. Treatment plants are designed around the overall volume of the wastewater and the amount of pollutants , or strength, of the wastewater. Different treatment plant components are designed to address the volume and/or the removal of the pollutants. For this Study, the two types of pollutants the treatment plants are designed to treat are biochemical oxygen demand (BOD) and total suspended solids (TSS). Wastewater coming from different customer types often have different levels of concentration of BOD and TSS. Customers with higher than average concentration of either, or both, BOD and TSS utilize the treatment plant to a greater extent than an average user. Because these customers with higher than average concentration of pollutants utilize treatment plant components designed to treat the pollutants they should then be responsible for a higher proportionate share of the cost to treat the pollutant. Each of these types of costs may be collected in a slightly different manner as to allow for the development of rates that attempt to collect costs in the same manner as they are incurred. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 7 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.5.2 Overview of the Cost of Service Analysis A cost of service study utilizes a three -step approach to review costs; functionalization, allocation, and distribution of costs. The graphic shown below provides a simple overview of the three -step process of functionalizing costs, allocating them to the various cost components (e.g., volume, BOD or TSS) and then proportionally distributing costs to the identified customer classes of service (i.e., General User, Industrial/Permit user, Wastehauler). Functionalization Allocation Distribution al Use rial hauler al Use rial hauler al Use Jal hauler The above illustration is greatly simplified for purposes of explaining the cost of service process. These basic concepts are adapted and tailored to OC San's specific wastewater system. In this case, OC San's cost of service study uses the basic approach illustrated above, but it has been tailored to reflect the specific and unique characteristics and customers of OC San's wastewater system. Provided below is a more detailed discussion of the general procedures, or steps, illustrated above and used within OC San's wastewater cost of service analysis. Functionalization — Functionalization is the arrangement of expenses and asset (plant) data by major operating functions within the utility (e.g., treatment, conveyance). For OC San's Study, the functionalization of the cost data was accomplished through OC San's system of asset and expense accounts. More specifically for expenses, OC San has a detailed account level that breaks the expense into areas that are easily functionalized. Functional categories used in this Study were: • Headworks • Sludge Thickening • Primary Sedimentation • Digestion • Secondary Sedimentation • Solids Handling • Trickling Filters • Solids Disposal • Activated Sludge Process • Effluent Disposal hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 8 FN Orange County Sanitation District Comprehensive Wastewater Rate Study • Oxygen Activated Sludge Process 0 Interplant • Aeration Equipment and Structures • Collection • Blower Equipment and Structures These are the same functional categories as used in prior cost of service studies for OC San. Allocation — The next step of the cost of service is the allocation of the functionalized assets and costs. Allocation determines what purpose assets serve and why expenses were incurred or what type of need is being met. OC San's plant accounts and revenue requirement were reviewed and allocated based on two types of allocators: • Volume -Related Asset or Costs: Volume assets are those assets that are put into place to treat the overall volume of wastewater. Volume costs are costs that tend to vary with the total quantity of wastewater produced by a customer. Chemicals or electricity used in the treatment of water is an example of a volume -related allocation since these costs tend to vary based upon the total flow of wastewater. • Strength Related Assets and Costs: For this Study, and as noted, two primary types of pollutants were identified, BOD and TSS. Strength of wastewater is the concentration of the BOD and TSS of the wastewater, typically expressed as milligram per liters. Strength of wastewater is important because the higher the strength of the wastewater, either BOD or TSS, the higher the costs to treat that wastewater. Assets and costs of the wastewater treatment process are necessary to specifically treat either, or both, BOD and TSS. The allocation of assets, capital and expenditures, used in OC San prior studies were reviewed by HDR to determine if they remain appropriate. Based on the review, HDR found the allocations used in past studies were appropriate and used to allocate costs in the development of this Study. Table 1-4 summarizes the functional categories descried above and the allocation. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 9 FN Orange County Sanitation District Comprehensive Wastewater Rate Study Table 1-4. Allocation of Functional Categories Description Headworks 75% 5% 20% 75% 5% 20% Primary Sedimentation 30% 70% 15% 25% 60% Secondary Sedimentation 70% 30% 100% Trickling Filters 100% 100% Activated Sludge Process 100% 100% Oxygen Activated Sludge Process 100% 100% Aeration Equipment and Structures 100% 100% Blower Equipment and Structures 100% 100% Sludge Thickening 25% 75% 25% 75% Digestion 25% 75% 25% 75% Solids Handling 25% 75% 25% 75% Solids Disposal 45% 55% 45% 55% Effluent Disposal 100% 100% Collection 90% 10% 90% 5% 5% Interplant 70% 30% 70% 30% The results of the individual asset and expense allocation can be summed up by combining the total asset, capital and operations and maintenance expense and arriving at an overall allocation. Table 1- 5 shows the summary level allocation. Table 1-5. Summary of the Allocations D- :•� Allocation of Plant Assets 54% 25% 21 % Allocation of Operations & Maintenance Expenses 23% 30% 47% Allocation of Capital Expenses 47% 27% 27% Table 1-5 provides the results of the allocation process which determined that 54% of plant in service is necessary to serve the total volume of wastewater, 25% necessary to treat BOD, and 21 % TSS. The allocation of plant assets in Table 1-5 is a composite of individual asset groups that best reflect their function within the overall system. The asset allocations were used as a means of allocating debt service and policy driven assumptions within the revenue requirement. Similarly, the O&M expense allocation is a composite of several lines of individual types of expenses specifically allocated based on their function which are combined to equal 23% volume, 30% BOD and 47% TSS. The allocation of capital expenses is also a combined value based on each individual capital project, when combined hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 F)l Orange County Sanitation District Comprehensive Wastewater Rate Study they result in 47% volume, 27% BOD, and 27% TSS related. The capital allocation was used to allocate capital funded from rates which is the annual amount of funding from current rate revenues. Each of these allocations along with specific cost allocations are used in the process of allocating the total revenue requirement. Table 1-6 below provides the summary of the revenue requirement allocation. Table 1-6. Summary of the Revenue Requirement Allocation ($000,000s) Description:•� Allocation of Revenue Requirement Expense Allocation Capital Funded Through Rates Net Transfers Debt Service Total Revenue Requirement Percent Allocation of Revenue Requirement $209.89 r$49.07 $63.16 $97.66 296.77 127.52 80.72 88.54 (77.85) (44.28) (19.34) (14.23) 68.61 36.85 18.30 13.46 $497.43 $169.16 $142.85 $185.43 100% 34% 29% 37% Distribution of Costs — The first step in the distribution of the revenue requirement is to establish, or identify, customer classes or groups of customers. OC San has three basic customer groups that this Study is designing rates, General Users, Industrial/Permit Users, and Wastehaulers. The General User group is the largest customer group, and it can be further broken down into various user types. All Single family homes are charged a fixed rate which represents one EDU. All other customers within the General User group are charged a fixed percentage of the EDU per 1,000 square feet. The percentage per 1,000 square feet charge is based on the assumed flow and strength for each non single family customer as compared to a single family customer/EDU. Permit/Industrial Users are customers who's wastewater exceeds strength and flow limits requiring a special permit and are charged by volume and rate per pound for BOD and TSS. Wastehaulers are charged a per gallon rate reflecting the cost of treatment and administrative charges. Once the allocation of the revenue requirement process is complete, and the customer groups have been defined, the allocated costs are distributed to each customer group. OC San's allocated costs were distributed to the various customer groups using the following distribution methods and factors. Volume Distribution Factor: As noted above, volume -related assets and costs vary with the total flow of wastewater to the treatment plant. Therefore, the volume distribution Wastewater Volume factor is based the projected volume of Distribution Factor FY 2023-24 wastewater for each customer class of General Users 94.9% service for FY 2023-34. The determination of flow by customer type was determined based on available customer and system &I Industrial/Permit information. General User flow is not .1% specifically known by OC San, given wastewater is not metered, and the WasNo) tehaulers o.oi / customers are not direct OC San customers. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 I[B FN Orange County Sanitation District Comprehensive Wastewater Rate Study However, other customer types such as, Industrial/Permit users, wastehauler, SAWPA and IRWD flows are known or reasonably able to be estimated. General user flows were determined by subtracting the know flow of other customer types from the known flow received at the treatment plants. The volume distribution factor is used to distribute allocated volume related costs and to establish the volume unit cost that are ultimately used in the rate design step in this analysis. A more detailed discussion of the specific costs which are applied to these base distribution factors is contained in the following subsection of this report. • Strength Distribution Factors: Strength is the level of pollutants in the wastewater. As noted, for OC Sans Study the main pollutants of concern are BOD and TSS. BOD is essentially the measurement of organic pollutants in the wastewater, while TSS is the amount of undissolved matter suspended in the wastewater. Both pollutants are typically measured in as the amount of dry weight, in milligrams, contained within in a volume of water, such as a liter. Different types of OC San's customers have different concentrations of BOD and TSS. The goal of any wastewater rate is to design it in a way that recovers the proportionate share of volume and strength costs. Biochemical Oxygen Demand Distribution Factor FY 2023-24 General User 91.s9 /Permit General Use rs 98.2% Total Suspended Solids Distribution Factor FY 2023-24 i stri a I/Permit 1.6% According to the 1998 State Water Resource Control Board (SWRCB) in California, Revenue Program Guidelines Appendix G a single family residence has a BOD or TSS concentration between 175 to 250 milligram per liter and 100 to 200 gallons per day. Since the 1998 SWRCB Revenue Program Guidelines OC San's wastewater customer characteristics have changed. Specifically, water usage per capita has decreased as a result of water conservation efforts, water efficient appliances, and other changes in customer behavior. The result in reduction in per capita water use for a wastewater utility is less water being received at OC San's treatment plants. However, generally speaking, the amount of BOD and TSS remains the same even as the flow is reduced. The result in lower volume but same amount of pollutants is higher concentration of BOD and TSS. Based on the total pounds removed at the plants, the known pounds from industrial and wastehauler customers, the projected pounds for the general user class was calculated. 1.5.3 Major Assumptions of the Cost of Service Analysis A number of key assumptions were used within OC San's cost of service analysis. Below is a brief discussion of the major assumptions used. • The test period used for the cost of service analysis was FY 2023/24. The revenue and expense data for this time period was previously developed within the revenue requirement analysis. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 WA FN Orange County Sanitation District Comprehensive Wastewater Rate Study • The allocation of plant was based on the prior studies and information developed by OC San. HDR wastewater engineering staff reviewed the allocation of plant in service from these prior studies and confirmed that it is an appropriate and valid means of allocating individual plant assets. • The prior study and information also formed the basis for allocating expense and was also reviewed by HDR and deemed a valid method of allocating expense and was used for this study. • Capital funded from rates was allocated based on the overall allocation of capital projects. 1.5.4 Cost of Service Results In summary form, the cost of service analysis began by functionalizing OC San's asset and expenses. The functionalized assets and expense were then allocated to volume, BOD, and TSS. The distribution of costs reflects the facilities and costs allocated to each customer class based on their respective benefit. Based on the allocated costs, the next step in the cost of service is to develop average unit costs for rate design purposes. Average unit costs are simply the allocated volume cost divided by total volume, or total allocated strength cost divided by pounds of BOD or TSS. Table 1-7 is the system average unit cost for volume and strength. Table 1-7. Summary of the Unit Costs LEM A6 Allocated Revenue Requirement ($1,000,000s) $97.08 $109.18 $141.96 Unit, (MG 11,000 Pounds BOD/TSS) 55,375 143 165 Unit Cost ($/1,000 Gallon I $/Pound BOD/ TSS) $1.75 $0.76 $0.86 The unit cost in Table 1-7 is a system average unit cost as a whole. The exception is Wastehaulers that have a lower volume unit cost because they do not use the conveyance system facilities which are a substantial portion of the volume costs. Wastehauler BOD and TSS unit cost are the same as the overall system costs. 1.5.5 Cost of Service Conclusions and Recommendations HDR has closely examined the results of the cost of service and is of the professional opinion that the results are reflective of an proportional distribution of costs. HDR is of the opinion that OC San should follow the results of the cost of service in making the final rate adjustments. 1.5.6 Summary of the Cost of Service Analysis This section of the report has provided an analysis of the cost of service developed for OC San. This analysis was prepared using generally accepted cost of service techniques. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 13 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.6 Development of the Wastewater Rate Designs The final step of the comprehensive wastewater rate study process is the design of proposed rates to collect the desired levels of revenues, based upon the results of the revenue requirement and cost of service analyses. Each of the three customer groups in the cost of service have different rates. General users are charged a rate per EDU, which is a rate based on an average single family home. There are over one hundred other general user rates charged a percentage of the EDU on a per 1,000 square feet basis. The percentages used for other General Users rates is a percent that reflects the customer types usage compared to a single EDU. For example a multifamily housing unit is 70% of an EDU while a bowling alley is 112% of an EDU. In both cases, the percentage reflects the flows and strength of each customer type as compared to a single family home/EDU. Industrial/Permit customers are customers who wastewater volume or concentrations are outside the parameters of the general user rates. These customers are charged individual rate for volume, BOD, and TSS. Wastehaulers are charged a rate per gallon for treatment and an administrative charge. 1.6.1 Review of the Overall Rate Adjustments As indicated in the revenue requirement analysis, it is projected that OC San will need to adjust the overall level of revenues to meet the projected O&M and capital improvement needs. There are considerations that should be evaluated during the rate design step of the cost of service analysis. A few of these considerations are continuity of rate philosophy, impact to customers, and sufficient revenue generation. The rate design has followed the cost of service for General Use customers. It was determined through discussions with OC San staff to phase in the adjustments to the Industrial/Permit User rate over the 5 year rate adjustment period. The phase in was done to reduce the impact to the Industrial/Permit user while still getting the rate to the appropriate level by the end of the 5 year period. Provided below in Table 1-8 is a summary of the proposed rates by customer group. Table 1-8. Summary of the Proposed Revenues and Adjustments to Rates ($1,000,000) General User $321.50 $331.69 $10.19 3.2% Industrial/Permit User ' 14.20 14.94 I 0.74 5.2% Wastehaulers 0.75 0.75 0.00 0.0% Total $336.45 $347.38 $10.93 3.2% hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 14 FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.6.2 General User Rates The General User group is the largest of OC San's customer groups with single family customers comprising nearly 50% of all of general user revenue. Multifamily customers are several different types of users including duplex, triplex, and customers with more than three units. The Non-residential customers includes a wide range of customer types covering specific types of establishments. For General Users as single family is used as the basis for the definition of an EDU, or the billing unit for all other customer types. Table 1-9 contains the current and proposed rates for Single family and Multi- family customers. Table 1-9. Single Family and Multi -family Rates General Users Single Residence $347.00 $358.00 $371.00 $384.00 $397.00 $411.00 Multifamily per 1,000 square feet 242.90 250.60 259.70 268.80 277.90 287.70 All other customer types are measured as and equivalent to a single family as a percent per one thousand square feet. 1.6.3 Industrial/Permit User Rates OC San has approximately 300 customers who are charged rates for their actual volume of wastewater and the pounds of BOD and TSS treated. These customers are charged individual rates as the flows and pounds vary between customers and they generally have higher average volume and strength of wastewater. Table 1-10 show the current and projected rates for the Industrial/Permit users. Table 1-10. Industrial/Permit User Volume ($/Million Gallons) $1,601.28 $1,676.09 $1,754.41 $1,836.37 $1,922.17 $2,011.98 Biochemical Oxygen Demand 667.99 705.08 744.23 785.55 829.17 875.21 ($/1,000 Ibs) Total Suspended Solids 777.00 815.51 855.92 898.34 942.86 989.58 ($/1,000 Ibs) hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 `ll F)l Orange County Sanitation District Comprehensive Wastewater Rate Study The results of the cost of service analysis showed that Industrial/Permit user rates should be increased substantially. Given the impact this would have on individual customer bills, it was determined that the rates would be phased in over the five year rate setting period is proposed. The rate transition results in an approximately 5% average annual rate increase for Industrial/Permit users. 1.6.4 Wastehauler Rates Wastehaulers are unique among OC San's customer in that they are not served by the conveyance system but rather bring their waste to OC San for treatment. The concentration of Wastehauler wastewater is generally much higher than a typical residential customer. OC San has set the rate for Wastehaulers on a per gallon basis. there are two main components that make up the Wastehauler rate, the treatment costs and the cost to administratively process the manifests generated per truckload. Table 1-11 shows the calculation of the Wastehauler Rates. Table 1-11. Wastehauler Rates Allocated Treatment Cost BOD $270,336 TSS 305,665 Volume 6,557 Total Allocated Cost $582,558 13,360,000 $0.04 Wastehauler Administrative Charges Administrative Cost per Manifest $101 Number of Manifests X 6,832 Total Administrative Costs $690,032 13,360,000 $0.05 Total Wastehauler Charge per Gallon $0.09 The Wastehauler rate was kept flat for the five year rate setting period. Table 1-12 provides the Wastehauler rates. Table 1-12. Wastehauler Rates per Gallon Current Rate Treatment Charge $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 Administrative Charge 0.05 0.05 0.05 0.05 0.05 0.05 Total Wastehauler Rate $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Wastehaulers outside OC San's service area are charged a capital charge that is based on the annexation fee and the CFCC amortized over 50 years which equals $0.23 per gallon in addition to the rates in Table 1-12. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 fi[ FN Orange County Sanitation District Comprehensive Wastewater Rate Study 1.7 Summary of Wastewater Rate Study The wastewater rates, as proposed herein, are cost -based and were developed using generally accepted rate making methods and principles. The proposed rates have been developed based on the results of the revenue requirement and cost of service analysis. The implementation of proposed rates should generate the additional revenue needed to meet the projected O&M and capital needs. 1.8 Rate Survey There are many factors that go into a utility's cost to serve its customers and their resulting rates. A few of those factors include the relative size of the utility, density of customers, if it is primarily a regional system, age of the system, type treatment process, availability of other revenue such as property tax and cost of borrowing. OC San is unique in many ways, it largely is a regional wastewater that does not directly serve many of its customers with the exception of a small subset of customers. Table 1-13 provides annual rates for wastewater collection and/or treatment utilities and a few key characteristics for comparison purposes. Table 1-13. Survey of Other Wastewater Utilities Napa Sanitation $739 10 86,250 Regional Eastern MWD 408 43 870,000 East Bay MUD 475 63 740,000 Regional San Francisco PUD 1,270 80 1,840,000 Sacramento Regional County Sanitation District 444 124 1,600,000 Regional Orange County Sanitation District 358 181 2,600,000 Regional City of San Diego 687 180 2,500,000 Los Angeles Sanitation (City) 636 400 4,000,000 Los Angeles County Sanitation District 226 510 5,000,000 Regional hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 17 FN Orange County Sanitation District Capital Facility Capacity Charges 2 Capital Facility Capacity Charges 2.1 Capital Facility Capacity Charge Study 2.1.1 Introduction The purpose of wastewater Capital Facility Capacity Charges (CFCCs) is to provide for payment of an equitable share of capital costs attributable to new customers connecting to, or existing customers requesting additional capacity on, OC San's wastewater system. By establishing cost based CFCCs, OC San attempts to have growth pay for growth by having new customers pay their equitable share of the infrastructure already in place, which has been funded by existing customers, and which provides the available capacity to serve new customers (growth), and future infrastructure necessary to serve new customers. The wastewater CFCC was last reviewed in 2017. Industry best practice recommends CFCCs should be adjusted annually to reflect changes in construction costs (i.e., inflation), and to update the CFCCs whenever comprehensive planning documents for the system have been updated, or significant infrastructure projects have been completed. OC San most recently updated the wastewater CFCCs based on an inflationary index as of July 1, 2022. 2.1.2 CFCC Study Overview The wastewater CFCCs are calculated in conformance with California legal requirements, generally accepted industry standard practices, and are based on OC San's specific wastewater system planning and design criteria. CFCCs are based on the existing infrastructure, and if applicable future capital improvements needed to serve growth, divided by the number of equivalent dwelling units (EDUs) that will be served by the system capacity. A component buy -in (existing) and expansion (future) approach is often taken in developing the CFCCs because each component can have different planning and design criteria. OC San has previously used the combined methodology for calculating the wastewater CFCCs which adds both components (buy -in and expansion) approach together. The Water Environment Federation (WEF) Manual of Practice No. 271 discusses that the combined methodology is used when the wastewater system has available capacity in the existing wastewater system and future capital improvements are needed to serve new customers. Given this is the case for OC San, this Study and analysis will focus on a "combined" approach (existing + future). The calculations must also take into account the financing mechanisms of capital improvements. CFCCs must be implemented according to the new connections proportionate share of the wastewater system. This way, the CFCCs are related to the new customer's share of the wastewater system and infrastructure in place was well as their proportionate share of the future infrastructure required to serve them. OC San, as a matter of policy, may charge any amount up to the calculated and cost -based CFCC but not over that amount. Charging an amount greater than the net allowable CFCC would not meet the 1 Water Environment Federation Manual of Practice No. 27, 4t" Edition, p. 206-211. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 `E F)l Orange County Sanitation District Capital Facility Capacity Charges practical basis of charging cost -based charges that are an equitable share related to the benefit derived by the customer. OC San currently implements and assesses the wastewater CFCC based on the number of bedrooms for residential customers, and on a per 1,000 square feet basis for non-residential, residential accessory structures, and accessory dwelling units. One EDU equals the base charge of a single- family, 3+ Bedrooms. Customers with more bedroom units are charged by the number of additional bedroom units to determine the number of EDUs. Table 2-1, below, provides the present wastewater CFCC for OC San. Table 2-1. Present Capital Facilities Capacity Charge(l)°(Z) Single Family Residential (SFR), per unit 5+ Bedrooms 1.39 $7,949 4+ Bedrooms 1.19 6,806 3+ Bedrooms, *Base Charge 1.00 5,719 2+ Bedrooms 0.81 4,633 1+ Bedrooms 0.62 3,545 Multi -Family Residential (MFR) 4+ Bedrooms 1.08 $6,177 3+ Bedrooms 0.89 5,090 2+ Bedrooms 0.70 4,004 1+ Bedrooms 0.50 2,859 Studio 0.32 1,829 Non -Residential, Residential Accessory Structures, and Accessory Dwelling Units, Per 1,000 square feet Low Demand $360 Average Demand 2,234 High Demand 5,309 (1) Equivalent dwelling unit for residential is 3+ bedroom units as the base charge. (2) Present CFCC as of July 1, 2022. It should be noted that IRWD is not required to pay CFCCs based on a contractual agreement. IRWD provides funding to OC San for construction of costs of certain wastewater collection, transmission, treatment, and disposal facilities to be used by IRWD. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 19 FN Orange County Sanitation District Capital Facility Capacity Charges 2.1.3 CFCC Calculation There are various approaches that can be used to establish CFCCs which ultimately depend on the available capacity in the utility (i.e., ability to meet future customer demands). The Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems, Fourth Edition discusses three generally accepted tap fees methods: The buy -in method is based on the value of the existing system's capacity. This method is typically used when the existing system has sufficient capacity to serve new development now and into the future. • The incremental cost method is based on the value or cost to needed to add to the existing system to serve additional customers. This method is typically used when the existing system has limited or no capacity to serve new development now and into the future. The combined approach is based on a blended value of both the existing and future costs needed to serve a new customers. This method is typically used where some capacity is available in the existing system, but future projects are needed in other parts (e.g., wastewater lift station) to serve new development at some point in the future. The combined approach was used for OC San's wastewater CFCC calculation. The wastewater system has specific expansion needs to serve new customers. Therefore, the combined approach is the approach that best fits OC San's expansion of facilities given the impacts of growth outlined in the Master Plan. Therefore, the existing and future component cost per EDU is determined, and the cost per EDU for each existing and future component is added together for a combined total. Within the generally accepted CFCC methodologies,z there are a number of different steps used to establish cost -based and equitable CFCCs. These steps are as follows: • Step 1 — Determination of system planning criteria • Step 2 — Determination of equivalent dwelling units (EDUs) • Step 3 — Valuation of system component costs • Step 4 — Determination of any credits Step 1 — Determination of System Planning Criteria The first step in establishing the CFCC is the determination of the system planning criteria. This implies calculating the amount of capacity required by a single-family residential customer, or one EDU. The use of an adopted facility plan or master plan for the utility provides the basis for the CFCC system planning criteria. These planning documents provide the rational planning basis and criteria for the facilities and investment needed to operate and maintain the system properly and adequately. Generally, for a wastewater system the planning criterion is the average flow per EDU. The OC San standard specifications in the National Pollutant Discharge Elimination System (NPDES) permit, Master Plan, and Capital Improvement Plan are the documents and information that are referenced 2 Methodologies established in industry documents referenced as System Development Charges for Water, Wastewater, and Stormwater Facilities, by Arthur C. Nelson; AWWA M-1 Manual, 7t" Edition and WEF Manual of Practice No. 27, Financing and Charges for Wastewater Systems, Fourth Edition. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 20 FN Orange County Sanitation District Capital Facility Capacity Charges for the determination of the system planning criteria. Table 2-2, below, provides the planning data for OC San based on their NPDES permit. Table 2-2. CFCC — Planning Data Plant 1 Fountain Valley 182.00 Plant 2 Huntington Beach 150.00 Total Permit Dry Weather Flow') 332.00 SAWPA Rights (2) (30.00) RA 14(2) (10.00) Urban Dry Weather Runoff(2) (10.00) Total 282.00 (1) NPDES Order no. R8-202, NPDES No. CA01, dry weather flow of 332 MGD. (2) 2017 Master Plan, Chapter 7, page 7-5, Table 7-1; Maximum SAWPA, RA14 (IRWD), Urban Runoff. SAWPA has the rights to purchase up to 30 MGD, SAWPA has currently only purchased 17 MGD. Step 2 — Determination of Equivalent Dwelling Unit (EDU) The next step is the determination of the EDUs. An EDU provides a "common denominator" for assessing impact on a utility system. The determination of the total system EDUs is an important calculation in that it provides the linkage between the amounts of infrastructure necessary to provide service to a set number of customers. This implies that if the system is designed to provide service for demands up to the year 2035, then the infrastructure costs are divided by the total EDUs projected to be connected by 2035 to determine the equitable and proportionate cost per EDU. System planning criteria are used to establish the capacity needs of an equivalent dwelling unit. The average day flow in gallons per EDU is 230 gallons per EDU based on the Master Plan planning assumption for 2035. This is based on Master Plan of 75 gallons per person per day and the number of persons per household of 3.1 based on current Census information (75 X 3.1 = 230 gallons per EDU). The system capacity in MGD is divided by the average day flow per EDU to estimate the total EDUs. The current system average day flow is 221 MGD reflecting existing EDUs of 962,963 (221.00 = 230 = 962,963 EDUs). The future EDUs based on total system capacity of 282 MGD is 61 MGD (282 MGD — 221 MGD existing = 61 MGD) or 265,795 future EDUs (61.00 = 230 — 265,795 EDUs). A summary of the existing, future and total EDUs is presented in Table 2-3. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 21 F)l Orange County Sanitation District Capital Facility Capacity Charges Table 2-3. CFCC — Equivalent Dwelling Units Equivalent Dwelling Units — Existing Residential I 630,912 Commercial 292,199 Industrial 39,854 Equivalent Dwelling Units Existing 221.00 230 962,963 Equivalent Dwelling Units — Future Residential 174,143 Commercial 80,652 Industrial 11,000 Equivalent Dwelling Units Future 61.00 230 265,795 Total 282.00 230 1,228,758 Summary Residential 805,055 65.5% Non -Residential 423,706 34.5% Total 1,228,758 100.0% (1) Total permit capacity from previous table and the existing capacity of 2022 average flow at plant from 2022 wastewater rate study. (2) 2017 Master Plan, Chapter 7, page 7-3, average daily flow of 230 for 2035. It is important to note the percentage of EDU split between Residential and Non -Residential of 65.5% and 34.5% respectively, will be used later to convert EDUs to a square footage basis for Non - Residential. Given the development of the wastewater system EDUs the focus shifts to the calculation of the CFCC for each component. This aspect of the analysis is discussed in the next steps below. Step 3 — Valuation of System Component Costs The next step of the analysis is to review the major functional system infrastructure to determine the CFCC for the wastewater system. In calculating the CFCC for OC San, existing components, debt service for existing facilities net of capital fund reserves, and future capital improvements relating to expansion were included. The methodology used to calculate each of these components is described below. Existing or Buy -in Component To calculate the value of the existing assets for the CFCC, OC San's methodology considered the original cost of each asset. OC San provided an asset listing for the various existing components and their installation dates. This data was reviewed in this analysis by OC San staff and HDR for elimination of non -backbone infrastructure such as equipment and vehicles, and finally elimination of assets that were not OC San paid and were instead funded by grants or developer contributions. A replacement cost new less depreciation method was used. To accomplish this, the original cost of each asset was hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 22 FN Orange County Sanitation District Capital Facility Capacity Charges escalated to current, September 2022 dollars, based on the Construction Cost Index (CCI) for the Los Angeles area published in the Engineering News -Record (ENR). Based on the installation date and an estimated useful life, provided by OC San for each asset, the replacement cost for each asset was depreciated. The total net, CFCC eligible asset value as of June 2022, totaled $2.64 billion. Further detail can be seen on Exhibit 7 of the Technical Appendix. In addition, construction work in progress as of June 2021 was added in the amount of $407 million. This added to the existing assets at RCNLD totals $3.0 billion ($2.64 billion assets + $407 million CWIP = $3.0 billion total). Further detail on CWIP can be seen on Exhibit 4 of the Technical Appendix. Reserves The capital fund reserves are considered to be asset valuation adjustments to the overall wastewater system since they are infrastructure costs that relate to the wastewater system as a whole. This approach assumes that OC San could retire any outstanding debt with their reserves on hand. The total capital fund reserve, as of June 2021 is $961 million. Further detail can be seen on Exhibit 6 of the Technical Appendix. Future Component An important requirement for a CFCC study is the connection between the anticipated future growth on the system and the required facilities needed to accommodate that growth. For purposes of this study, OC San's most current Capital Improvement Plan (CIP) for the ten-year planning period of 2023 to 2032 was provided by OC San. This included construction work in progress projects that were not included as booked assets in 2021 and are shown in the CIP plan under years 2021 and 2022. It should be noted that the future components are in today's dollars (2022). Exhibit 8 of the Technical Appendix contains the details of this portion of the CFCC. The total future capital projects totaled $3.6 billion. The total future component of $3.6 billion divided by total EDUs of 1,228,758 results in $2,944 per EDU for the future component ($3.6 billion + 1,228,758 EDUs = $2,944 per EDU). The capital improvement listing can be seen on Exhibit 8 of the Technical Appendix. Step 4 — Determination of Any Credits The last step in the calculation of the CFCC is the determination of any credits. The credit considers the method used to finance infrastructure on the system so that customers are not paying twice for infrastructure. The double payment can come in through the imposition of a CFCC and then the requirement to pay debt service within a customer's wastewater rates. This component accounts for the outstanding debt principal on existing assets. By segregating the debt service out, the cost can be clearly identified and calculated appropriately. To avoid double - counting of the assets financed with debt, the future principal associated with those assets is deducted from the existing infrastructure value. OC San has several outstanding debt issues from 2010 to the recent 2022 Refunding issue. The total outstanding debt principal is $789 million or $643 per EDU debt credit ($789 million + 1,228,758 EDUs = $643 per EDU debt service credit). Further detail can be seen on Exhibit 5 of the Technical Appendix. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 23 FN Orange County Sanitation District Capital Facility Capacity Charges 2.1.4 CFCC Summary of Net Allowable Calculation Based on the sum of the component costs calculated above, the allowable wastewater CFCC was determined. "Allowable" refers to the concept that the calculated CFCC is OC San's cost -based CFCC. OC San, as a matter of policy, may charge any amount up to the allowable CFCC, but not over that amount. Charging an amount greater than the allowable CFCC would not meet the practical basis of a cost -based CFCC. Table 2-4 shows a summary of the allowable CFCC. Details are provided in Exhibit 3 of the Technical Appendix. Table 2-4. Summary of CFCC per EDU Existing Wastewater System (Replacement Cost Less Depreciation) $2,644,655,192 Construction Work in Progress 407,684,294 Less: Outstanding Debt Principal (789,750,000) Plus: Reserves 961,618,916 Future Wastewater Infrastructure 3,617,505,992 Net Existing and Future Infrastructure $6,841,714,393 Total Existing and Future EDUs 1,228,758 Total Capital Facilities Capacity Charge per EDUM $5,568 (1) One EDU equals 3+ Bedrooms. This calculated wastewater CFCC of $5,568 compares to OC San's current CFCC of $5,719 per EDU, or a decrease of $151. The $5,568 per EDU reflects one (1) equivalent dwelling unit which is a 3+ bedroom unit. The small decrease should not be compared to exact cost since this analysis is based on the value of the current system in today's dollars. OC San adjusts the CFCC annually based on an ENR index as of July each year. It is our recommendation that OC San hold the CFCC at the current level until next year's ENR update. 2.1.5 CFCC Implementation OC San implements the Non -Residential CFCC based on 1,000 square feet basis. This is based on one EDU equaling 1,581.52 square feet. Table 2-5 develops the CFCC per EDU converted to 1,000 square feet for non-residential. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 24 F)l Orange County Sanitation District Capital Facility Capacity Charges Table 2-5. CFCC per EDU Converted to 1,000 Square Feet Net Existing and Future Infrastructure Residential Percentage of EDUs $ Percentage Share Total Residential EDUs Dollars per EDU CFCC Non -Residential Percentage of EDUs $ Percentage Share Total Non -Residential EDUs(1) 423,706 Assumption of Square Foot per EDU(z) X 1,581.52 Non -Residential Square Footage (1,000 sq. ft.) = 670,099 Dollars per 1,000 square feet CFCC (1) Non -Residential EDUs calculated in planning data. See Table 2-3 of this report. (2) OC San One EDU equals 1,581.52 square feet. $6,841,714,393 65.5% $4,482, 539, 528 805,055 $5, 568 34.5% $2,359,19,075 670,099 $3, 521 Table 2-6 below summarizes the CFCC for present and calculated for Residential and Non - Residential. As shown in the table the overall adjustment for Residential is a slight decrease which has been recommended to hold at the current level until next year's annual ENR adjustment. However the Non -Residential shows an increase. This is due to the implementation of the CFCC in the past. This study updates the CFCC for Non -Residential customers that reflects cost based levels. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 f•�.1 F)l Orange County Sanitation District Capital Facility Capacity Charges Table 2-6. Present and Calculated Capital Facilities Capacity Charge Use CategoryPresent Calculated Single Family Residential (SFR), per unit 5+ Bedrooms 1.39 T $7,949 T $7,739 (2.6%) 4+ Bedrooms 1.19 6,806 6,626 (2.6%) 3+ Bedrooms, *Base Charge 1.00 5,719 ■ 5,568 (2.6%) 2+ Bedrooms 0.81 4,633 4,511 (2.6%) 1+ Bedrooms 0.62 3,545 3,452 (2.6%) Multi -Family Residential (MFR) 4+ Bedrooms 1.08 $6,177 $6,014 (2.6%) 3+ Bedrooms 0.89 5,090 4,956 (2.6%) 2+ Bedrooms 0.70 4,004 3,898 (2.6%) 1+ Bedrooms 0.50 2,859 2,783 (2.6%) Studio 0.32 1,829 1,781 (2.6%) Non -Residential, Residential Accessory Structures, and Accessory Dwelling Units, Per 1,000 square feet Low Demand 1.08 $360 $242 (32.8%) Average Demand 0.89 2,234 1,485 (33.5%) High Demand 0.70 5,309 3,521 (33.7%) (1) 1 equivalent dwelling unit for residential is 3+ bedroom units as the base charge. (2) Present CFCC as of July 1, 2022. (3) Combined methodology established in Water Environment Federation (WEF) Manual of Practice No. 27, 4th Edition, p. 206-211. Based on the recommendation to hold the Residential at current level until next year's ENR analysis, Table 2-7 shows the proposed 5-year adjustments for the CFCC. ProposedTable 2-7. .- CFCC 2022-23 1 2023-24 1 2024-25 1 2025-26 2026-27 1 20274 Residential 3+ $5,719 $5,719 ENR ENR ENR ENR Non -Residential 11 IN ' m Low Demand $360 $242 ENR ENR ENR ENR Average Demand $2,234 $1,485 ENR ENR ENR ENR High Demand $5,309 $3,521 ENR ENR ENR ENR The wastewater CFCC developed and presented in this section of the report are based on the planning and engineering design criteria of OC San's wastewater system, the value of the existing assets, future projects and generally accepted ratemaking principles. Consistently updating the charge annually based on the Engineering New Record Construction Cost Index 20-City Average and updating the hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 K FN Orange County Sanitation District Capital Facility Capacity Charges CFCC on a routine basis will continue to create equitable and cost -based charges for new customers connecting to OC San's wastewater system. 2.2 Supplemental Capital Facility Capacity Charge Study OC San's current industrial use ordinance, determines if additional CFCCs, or Supplemental Capital Facility Capacity Charge (SCFCC) can be imposed on industrial users who place larger than average demands on the wastewater system. The SFCC is calculated on the same methodology as the CFCC. OC San's total existing and future asset value is divided by the total number of EDUs served. The existing and future asset values allocated between Flow, BOD, and TSS in the CFCC analysis are used to develop the SCFCC. The details of the total existing and future value of $6.8 billion allocated between Flow, BOD, and TSS can be found in Exhibit 3 of the Technical Appendix. The allocated value of Flow, BOD, and TSS are amortized over a thirty-year period at an interest rate equal to the current Bond Buyer 20-Bond Index interest rate. The SCFCC calculation is shown in Table 2-8. The SCFCC details can be seen on Exhibit 2 of the Technical Appendix. Table 2-8. Calculated Supplemental Capital Facilities Capacity Charge(' ),(2) A Value of Existing/Future Assets $6,841,714,393 $3,319,186,756 $1,880,886,372 $1,641,641,266 B Total EDUs I 1,228,758 1,228,758 1,228,758 1,228,758 C SCFCC per EDU (A= B) $5,568 2,701 1,531 1,336 D 30 Year Amortized SCFCC(2) ■I $144 $82 $71 E EDU Basis 185 288 290 0.4481 0.4503 gpd Ibs/day Ibs/day F SCFCC (D _ E =365 Days) $0.002140 $0.500628 $0.434827 per gallon per lb. per lb. (1) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual of Practice No. 27, 4t" Edition, p. 206-211. (2) Bond Buyer's 20 Bond Index as of July 2022 at a rate of 3.4% for 30 years. OC San will continue to review the SCFC on a regular basis to review potential capital cost shifts and to maintain SCFCC rate payer equity. Table 2-9 shows the comparison of the present SCFCC and the calculated SCFCC. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 27 FN Orange County Sanitation District Capital Facility Capacity Charges Table 2-9. Present and Calculated Supplemental Capital Facilities Capacity Charge(' ),(2) Daily Charge (2) Flow $0.001996 $0.002140 $0.00014471 7.2% BOD $0.481210 $0.500628 $0.019418 4.0% TSS $0.270840 $0.434827 $0.163987 60.5% (1) Present SCFCC Ordinance No. OCSD-57, Table D, for July 1, 2022. (2) 2.10 (i) an increase of discharge flow of 25,000 gallons per day (gpd), or 25% per day over its established baseline whichever is less; or (ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day , whichever is lesser, over its established baseline authorization. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the discharge or the District. The large change to TSS was reviewed and is a result of several factors, first the addition of the Ground Water Replenishment asset shifted costs between flow and BOD and TSS, secondly previous studies did not adopt, or transition to, the calculated level for TSS. Given the large change, Table 2- 10 shows the recommended transition of the TSS SFCC over the upcoming five year period. Table 2-10. Present and Calculated Supplemental Capital Facilities Capacity Charge')°(Z) Flow $0.001996 $0.002140 BOD $0.481210 $0.500628 ENR ENR ENR ENR ENR ENR ENR ENR TSSM $0.270840 $0.303640 $0.336440 $0.369240 $0.402040 $0.434830 (1) All 2022-23 rates are as of July 1, 2022; 2023-24 Flow and BOD are the calculated rate. (2) For TSS, the difference between 2027-28 and 2022-23 was spread over 5 year period. 2.3 Annexation Charge Study OC San does not receive any tax exchange from annexed properties because of an agreement with the County of Orange. The annexation charge is established through Ordinance No. OCSD-33, beginning January 1, 2004 to be paid for annexation to OC San for wastewater services. Table 2-11 shows the present Annexation Charge. Table 2-11. Present Annexation Charge') Consolidated Revenue Area Nos. 1-13 $4,235 per Acre Revenue Area No. 14 Not Applicable (1) Present Annexation Charge Ordinance No. OCSD-33. The collection of the annexation fee will not result in any specific project and will not result in a direct physical change in the environment. The annexation fees were established based on a rational basis between the fees charged each property that is annexing, and the service and facilities provided to each annexed property by OC San. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 28 F)l Orange County Sanitation District Capital Facility Capacity Charges In order to keep up with inflation of costs since the implementation of the charge in 2004, the proposed annexation charge has been updated to reflect annual Consumer Price Index (CPI) changes from 2004 to present day of 2022. The LA CPI was used for the calculation resulting in an increase of the Annexation Charge from $4,235 per acre to $6,767 per acre. Table 2-12 details the calculation. Table 2-12. Present and Calculated Annexation Charge Revenue Area M Jan. 2004 LA Consumer Price Index Jan. 2022 LA Consumer Price Index LA CPI Factor 2004 to 2022 (301.21 = 188.50 = 1.60) 2004 Consolidated Revenue Area Nos. 1-13 Multiplied by LA CPI Factor 2022 Revenue Area No. 14 hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 188.50 301.21 1.60 $4,235 per Acre 1.60 $6,767 per Acre 29 FN Orange County Sanitation District Rebate Program 3 Rebate Program 3.1 Introduction OC San provides its non-residential general user customers the opportunity to apply for a water efficiency rebate or reduced charge. The water efficiency rebate, or reduced charge, is a reduced rate that represents the difference between the calculated charge and the actual flow for the customer based on past water consumption. Customers may request a rebate from prior billing periods and or request a reduced rate going forward. Verifiable proof, such as water bills of the reduced water usage must be provided to the OC San General Manager or his/her designee. The bill charged to any customer seeking a rebate or reduced future rate cannot be less than that of the single family rate. The current ordinance also allows for a reduction in the BOD and TSS component of the rate if it is significant and with verifiable proof to the satisfaction of the OC San General Manager. Once the reduction in billed volume or BOD or TSS is established the customer can lock that reduction in for three years. 3.2 Analysis OC San's customers benefit from the rebate program to achieve equitable rates for customers who do not conform to the flow and concentration of pollutants per 1,000 square feet per EDU of their user group. An alternative rate design often used is a volume -based rate such as the City of Los Angles Sanitation department's rates. This type of rate design avoids the flow -based differences among customer groups by utilizing the City's water meters as a surrogate for measuring wastewater flow. This type of rate design is not feasible for OC San because they do not have access to their customer's water meters. OC San has been evaluating if the current rebate program is working as intended and has asked HDR to analyze the program for possible changes. There are a few complicating factors that have risen over the years. One issue is if the BOD and TSS levels should be adjusted at the same rate as the volume. Conservation programs generally reduce water consumption but not necessarily the amount of pollutants that go into the wastewater. As water is reduced the concentration of the pollutants generally increases, in other words the actual weight of the pollutants stay the same at the reduced consumption level. It is possible for a customer within a specific usage type to have less BOD and TSS than another like customer due to different physical process or if they have installed facilities that reduce the amount of pollutants from entering the wastewater. The problem a customer may face when seeking a reduced rate based on lower BOD and or TSS concentrations is they might not be able to find a company that will test their wastewater thus providing verifiable proof. The goal of this program is to adjust rates equitably to reflect the actual customer characteristics and reduce the administrative burden on OC San Staff. 3.3 Alternative Rebate Calculation Rebate programs for sewer utilities with EDU based charges are not unique to OC San. Los Angeles County Sanitation District (LACSD) also has an EDU based rate and has a rebate program for their customers. LACSD's Low -Water Rebate Program provides rebate to customers based on the percent hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 Kit FN Orange County Sanitation District Rebate Program of flow reduction within structured tiers. Unlike OC San's current rebate program that individually calculates the rebate based on the customer's actual flow, LACSD's tiered structure is based on the ratio of the average daily flow to the assumed flow for the customer's parcel. Customer's flow must be below 90% of the assumed flow to qualify for the rebate. Table 3-1 shows LACSD's rebate tiers. Table 3-1. Los Angeles County Sanitation District Tiered Rebate program 90% or Greater 0% 70% to 89% 20% 50% to 69% 40% 30% to 39% 60% 29% or Less 80% The benefit for a tiered rebate program like LACSD is the simplicity. If a customer falls within the tier they receive a set reduction in their rate. However, the LACSD program does not account for changes in the actual weight of the pollutants like BOD or TSS. As discussed in the Cost of Service section 1.5 of this report, the cost to treat wastewater typically has three cost components, the volume of the wastewater, the weight of BOD and weight of TSS. Reduced water is likely to be a result of water conservation efforts like low water use appliances or a reduction is irrigation which do not impact the weight of BOD or TSS. 3.4 Recommendations HDR recommends OC San closely consider the benefits and drawbacks when considering making changes to their rebate program. The intent of the program is to adjust the customer rates that more closely match the customers cost of service and in doing so results in a more equitable rate. The administrative burden of their current system requires a calculation for each customer requesting a rebate resulting in more time and thus higher costs to run the program. Stability and transparency are also important aspects to any rate related program. Having a program like the LACSD tiered rebate program would be easily explained by OC Staff and more easily understood by customers. The current rebate program also has some issues that are not easily addressed. The main issue being that the basis of the flow and concentration of the pollutants are based on the 1998 State Water Resource Control Board (SWRCB) in California, Revenue Program Guidelines Appendix G which is 24 years old and cannot be accurately verified. OC San should also consider extending the lock -in program from 3 years to 5 years. Extending the lock -in period to 5 years would reduce amount of staff time spent on matters dealing with customer rebates and also provide stability in the funds returned to customers from the rebate from year to year. The 5 year lock -in program is also beneficial to the customers who would have to submit paperwork less frequently. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 FN Orange County Sanitation District Miscellaneous Fees and Charges 4 Miscellaneous Fees and Charges 4.1 Introduction OC San has requested several other fees be updated along with this study. These fees include, permit fees, sampling fees, and inspection fees. It is in the interest of OC San and its customers to charge fees to customers for tasks that require significant expense or labor. Charging these fees at the cost to provide them prevents other customers from subsidizing customers requiring the activities involved with these other services. These fees should be updated at regular intervals to verify the charges reflect current and future assumed costs of materials, labor, and overhead costs. Whenever possible specific hourly rates, and times associates with the fee were used to more closely approximate the true cost of the permit or other activity. 4.2 Administrative Fees and Charges Administrative Fees and Charges Related to Permittees for Class 1 and 2 dischargers were calculated using estimated time to process the permit and current average hourly staff rates, plus 33% for overhead. The results of this calculation were as much as 36% increase. To reduce the impact of this large increase those fees were phased in over the five year period. Wastehauler and Administrative processing fees were not change over the five year period. Table 4-1 shows the class 1 and 2 administrative, Wastehauler and administrative processing fees. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 BY: FN Orange County Sanitation District Miscellaneous Fees and Charges Table 4-1. Administrative Fees and Charges Related to Permittees per Year Description I Administrative Fees and Charges Related to Permittees per Year A. Class I/Certified Discharger $1,685.00 $1,791.00 $1,904.00 $2,024.00 $2,152.00 B. Class 11 554.00 591.00 630.00 672.00 717.00 C. SPDP1 1,192.00 1,225.00 1,259.00 1,293.00 1,328.00 SPDP Renewal 860.00 913.00 969.00 1,029.00 1,092.00 D. Wastehauler 207.00 225.00 245.00 267.00 291.00 E. Certified Zero/No Discharge 126.00 133.00 140.00 147.00 155.00 Wastehauler F. Permit Decal Initial Issue $25.00 $25.00 $25.00 $25.00 $25.00 G. Permit Decal Replacement 50.00 50.00 50.00 50.00 50.00 H. Entry Card Initial Issue 50.00 50.00 50.00 50.00 50.00 I. Entry Card Replacement 100.00 100.00 100.00 100.00 100.00 J. After Hours Discharge - Prearranged 102.00 102.00 102.00 102.00 102.00 K. After Hours Discharge - Emergency 165.00 165.00 165.00 165.00 165.00 Administrative/Processing Fees L. OCSD's Collection of Water Consumption $500.00 $500.00 $500.00 $500.00 $500.00 Data M. Appeal Hearing Filing Fee $800.00 $800.00 $800.00 $800.00 $800.00 N. Late Application (30 days or less from $500.00 $500.00 $500.00 $500.00 $500.00 expiration date) O. Late Application (15 days or less from $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 expiration date) 4.3 Industrial Discharger, Source Control and Non- compliance Sampling Fees Industrial Discharger, Source Control and Non-compliance Sampling Fees were not adjusted for the five year adjustment period. Table 4-2 shows the Industrial discharger, source control and non- compliance sampling fees. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 33 F)l Orange County Sanitation District Miscellaneous Fees and Charges Table 4-2. Industrial Discharger, Source Control and Non-compliance Sampling Fees Description Cost of Processing and Sampling Following a Minor $200.00 $200.00 $200.00 $200.00 $200.00 Violation Cost of Processing and Sampling Following a Major 400.00 400.00 400.00 400.00 400.00 Violation Non -Compliance Resampling Fee 275.00 275.00 275.00 275.00 275.00 4.4 Inspection Fees Inspection fees were adjusted by the Los Angeles Consumer Price Index for the 2023-24 fees and then 3% thereafter to account for expected inflation. Table 4-3 provides the inspection fees for the next five years. Table 4-3. Inspection Fees for Single Connection FY FY FY FY FY Description 2023-24 1 2024-25 1 2025-26 1 2026-27 1 2027-28 Lateral installation to property line: $950.00 $980.00 $1,010.00 $1,040.00 $1,070.00 Lateral installation to property line with optional 1,250.00 1,290.00 1,330.00 1,370.00 1,410.00 cleanout to existing manhole: Core drilling into existing manhole base - add 1,630.00 1,680.00 1,730.00 1,780.00 1,835.00 Installation of new manhole over existing wastewater: 2,065.00 2,125.00 2,190.00 2,255.00 2,325.00 Gas Flap Installation - add: 510.00 525.00 540.00 555.00 570.00 4.5 Non -Compliance Sampling Fees Non -Compliance Sampling Fees were calculated from estimates of time to conduct the sample multiplied by the average hourly rate, plus a 30% overhead adjustment and lab fees when applicable. Table 4-4 provides the sampling fees for the next 5 years. hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 34 FN Orange County Sanitation District Miscellaneous Fees and Charges Table 4-4. Non -Compliance Sampling Fees Description Ammonia Analysis as Nitrogen $38.00 Biochemical Oxygen Demand (BOD) 57.00 BOD and Suspended Solids (SS) Analysis 114.00 Chemical Oxygen Demand 38.00 Conductivity 76.00 Cyanide (Amenable) 171.00 Cyanide (Total) 99.00 Total Radium Determination 207.00 Gross Alpha and Beta Determination 111.00 Tritium Determination 102.00 Strontium Determination 134.00 Uranium Determination 45.00 Oil & Grease (Hexane Soluble Matter) 95.00 Total Organic Nitrogen 76.00 pH 38.00 Fluoride 38.00 Suspended Solids (Total) 57.00 Suspended Solids (Total and Volatile) 171.00 Total Dissolved Solids 57.00 Mercury (EPA 245.1) 76.00 Heavy Metals 52.00 Pharmaceutical Industry (EPA 1666) 342.00 Chlorinated Pesticides and Aroclors (EPA 608) 128.00 Volatile Organics (EPA 624) 304.00 Semi -Volatile Organics (EPA 625) 683.00 Total Sulfides 83.00 P FAS 413.00 Dissolved Sulfides 58.00 $39.00 $40.00 $41.00 $43.00 59.00 60.00 62.00 64.00 117.00 121.00 124.00 128.00 39.00 40.00 41.00 43.00 78.00 81.00 83.00 85.00 176.00 181.00 187.00 192.00 102.00 105.00 108.00 111.00 213.00 219.00 226.00 232.00 114.00 117.00 121.00 124.00 105.00 108.00 112.00 115.00 138.00 142.00 146.00 150.00 46.00 48.00 49.00 50.00 98.00 101.00 104.00 107.00 78.00 81.00 83.00 85.00 39.00 40.00 41.00 43.00 39.00 40.00 41.00 43.00 59.00 60.00 62.00 64.00 176.00 181.00 187.00 192.00 59.00 60.00 62.00 64.00 78.00 81.00 83.00 86.00 54.00 56.00 58.00 60.00 352.00 363.00 374.00 385.00 132.00 136.00 140.00 144.00 313.00 322.00 332.00 342.00 704.00 725.00 747.00 769.00 87.00 89.00 92.00 95.00 431.00 444.00 457.00 471.00 60.00 62.00 64.00 66.00 hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714)730-2300 35 FN Orange County Sanitation District Miscellaneous Fees and Charges Technical Appendix hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377 (714) 730-2300 BI:: Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Summary Revenue Rate Revenue at Current Rates Miscellaneous Revenue Total Revenue Expenditures Management & Administrative Services Environmental Services Department Engineering Department Operation & Maintenance Administration Collection Facilities Fleet Services Plant 1&2 Operations & Maintenance Total Expenditures Rate Funded Capital Estimated I Preliminary I Preliminaryl Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 $327,459 $335,487 $336,448 $337,413 $338,380 $339,350 $340,324 $341,300 $342,279 $343,261 $344,246 140,135 149,963 149,207 138,033 142,720 146,594 150,934 157,241 161,582 166,317 168,820 $467,594 $485,449 $485,655 $475,446 $481,100 $485,945 $491,257 $498,541 $503,861 $509,578 $513,066 $40,592 $44,433 $45,648 $47,018 $48,428 $49,881 $51,377 $52,919 $54,506 $56,141 $57,826 19,064 22,665 23,842 24,557 25,293 26,052 26,834 27,639 28,468 29,322 30,202 6,381 8,889 9,040 9,311 9,590 9,878 10,175 10,480 10,794 11,118 11,452 270 667 703 724 746 769 792 815 840 865 891 18,173 19,048 18,638 19,197 19,773 20,367 20,978 21,607 22,255 22,923 23,610 2,011 2,085 2,150 2,214 2,281 2,349 2,420 2,492 2,567 2,644 2,723 96,087 103,358 109,871 113,167 116,562 120,059 123,660 127,370 131,191 135,127 139,181 $182,579 $201,145 $209,892 $216,189 $222,674 $229,354 $236,235 $243,322 $250,622 $258,140 $265,885 $186,115 $250,244 $296,775 $262,290 $280,905 $273,021 $274,888 $329,087 $323,690 $325,733 $260,463 Debt Service $67,846 $68,568 $68,611 $68,572 $68,626 $68,500 $72,653 $72,652 $72,650 $71,141 $74,731 Transfers $3,270 $7,190 $7,350 $3,850 $3,850 $3,850 $3,850 $3,850 $3,850 $3,850 $3,850 Total Revenue Requirement $439,811 $527,147 $582,628 $550,901 $576,055 $574,725 $587,626 $648,910 $650,812 $658,865 $604,929 Balance/Deficiency of Funds $27,784 ($41,697) ($96,972) ($75,455) ($94,955) ($88,780) ($96,368) ($150,370) ($146,951) ($149,287) ($91,863) Rate Adj. as a % of Rate Rev -8.5% 12.4% 28.8% 22.4% 28.1 % 26.2% 28.3% 44.1 % 42.9% 43.5% 26.7% Proposed Rate Adjustment 0.00% 0.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Rate Revenue After Adjustment $327,459 $335,487 $348,224 $361,445 $375,168 $389,412 $404,198 $419,545 $435,474 $452,009 $469,172 Debt Service Coverage Ratio Before Rate Adjustment 4.20 4.15 4.02 3.78 3.77 3.75 3.51 3.51 3.49 3.53 3.31 After Rate Adjustment 4.20 4.15 4.19 4.13 4.30 4.48 4.39 4.59 4.77 5.06 4.98 Residential Bill (1 EDU) $343.00 $347.00 $359.15 $371.72 $384.73 $398.19 $412.13 $426.55 $441.48 $456.93 $472.93 $ Change Per Month 0.00 4.00 12.15 12.57 13.01 13.47 13.94 14.42 14.93 15.45 15.99 Cumulative $ Change per Month 0.00 4.00 16.15 28.72 41.73 55.19 69.13 83.55 98.48 113.93 129.93 10/29/2022 Draft OC San 1 of 57 Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 1- Escalation Factors Scenario 1 Page 1 of 1 Estimated Preliminary Projected Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Revenues General Users 0.0% 0.1% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% Industrial 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% Wastehaulers 0.3% -28.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% IRWD 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% SAWPA 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% Property Tax 2.0% 2.0% 2.1% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Misc. Revenue 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Flat 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Expenses Salaries, Labor & Benefits Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Training & Meetings Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Chemicals Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Fuel Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Tools and Small Equipment Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Janitorial Supplies Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Janitorial Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Misc. Operating Supplies Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Property Tax Fees Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Solids Removal Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Other Waste Disposal Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Grounds Keeping Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Misc. Services Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Professional Services Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Research & Monitoring Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Repairs & Maintenance Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Telephone Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Diesel Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Natural Gas Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Power Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Water Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Other Operating Supplies Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Other Non -Operating Costs Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Miscellaneous Expense Actual 9.3% 4.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Flat 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% One-time -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% 0.0% Investment Interest 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% New Long -Term Debt Assumptions Certificate of Participation (COP) Rate 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Term 20 20 20 20 20 20 20 20 20 20 COP Issuance Costs 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% Low Interest Loan Rate 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Term 10 10 10 10 10 10 10 10 10 10 10/29/2022 2 DOraft OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Revenues Rate Revenues General Users Permitted Users Wastehaulers Total Rate Revenues Other Revenues Property Taxes IRWD O&M Assessment IRWD Capital Assessment IRWD Solids Assessment IRWD SAWPA New COP Issues Interest Revenues Capital Facilities Capacity Charges General User Rebates Equity Sale to 7 or 14 Share of SFI Revenue Share ofJO Revenue CIP Reimbursements Total Other Revenues Page 1 of 17 Estimated Preliminary Preliminary Projected CV 7n7l_77 N 7n77_72 CV 7M2_7d N 7n7d_7S CV 7n7S_7G N 7n7G_77 CV 7n77_7f N 7n7f_7G CV 7n7G_2n N 7n2n_2i CV 7n2i_21 $312,128,000 $320,534,310 $321,495,913 $322,460,401 $323,427,782 $324,398,065 $325,371,259 $326,347,373 $327,326,415 $328,308,395 $329,293,320 Exhibit 4 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 Exhibit 4 1,129,021 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 Exhibit 4 $327,459,387 $335,486,676 $336,448,278 $337,412,766 $338,380,147 $339,350,431 $340,323,625 $341,299,739 $342,278,781 $343,260,760 $344,245,685 Notes $107,623,549 $109,776,020 $112,081,316 $115,443,756 $118,907,069 $122,474,281 $126,148,509 $129,932,964 $133,830,953 $137,845,882 $141,981,258 As Property Tax 0 0 0 0 0 0 0 0 0 0 0 As IRWD 0 0 0 0 0 0 0 0 0 0 0 As IRWD 0 0 0 0 0 0 0 0 0 0 0 As IRWD 8,444,816 14,502,872 16,358,057 15,147,000 15,965,000 15,855,000 16,093,000 18,177,000 18,170,000 18,429,000 16,324,000 Cash Flow File 3,080,817 3,018,000 3,138,000 3,232,000 3,329,000 3,429,000 3,532,000 3,638,000 3,747,000 3,859,000 3,974,000 Cash Flow File 0 0 0 0 0 0 0 0 0 0 0 As Flat 5,751,000 Interest Accumulated in Fund Applied Directly to Capital (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) Exhibit 3,500,000 3,500,000 Cash Flow File 3,016,800 3,877,700 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 Cash Flow File 13,918,000 15,505,010 12,058,809 12,360,000 12,669,000 12,986,000 13,310,000 13,643,000 13,984,000 14,333,000 14,691,000 Cash Flow File 10.300.000 11,782,925 10.220.909 0 0 0 0 0 0 0 0 Cash Flow File Total Revenues 1 $467,594,369 $485,449,203 $485,655,370 $475,445,522 $481,100,216 $485,944,711 $491,257,134 $498,540,703 $503,860,734 $509,577,642 $513,065,944 10/29/2022 3 DOrpft OC San Orange County Sanitation District Cost of Service Rate Study Page 2 of 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Expenses Management & Administrative Services Salaries, Waees,& Benefits $25,176,434 $26,213,293 $27,626,025 $28,454,806 $29,308,450 $30,187,703 $31,093,335 $32,026,135 $32,986,919 $33,976,526 $34,995,822 As Salaries, Labor & Benefits Materials. Supplies. & Services Total Administrative Exp 1,688,297 $1,638,389 $1,655,648 $1,705,317 $1,756,477 $1,809,171 $1,863,446 $1,919,350 $1,976,930 $2,036,238 $2,097,325 As Miscellaneous Expense Total Printing & Publication 287,630 767,382 343,837 354,152 364,777 375,720 386,992 398,601 410,559 422,876 435,562 As Misc. Services Training & Meetings Meetings - Total 11,250 73,671 79,517 81,903 84,360 86,890 89,497 92,182 94,947 97,796 100,730 As Training & Meetings Training - Total 316,840 625,370 592,833 610,618 628,937 647,805 667,239 687,256 707,874 729,110 750,983 As Training & Meetings $2,304,017 $3,104,812 $2,671,835 $2,751,990 $2,834,550 $2,919,586 $3,007,174 $3,097,389 $3,190,311 $3,286,020 $3,384,601 Total Training & Meetings Operating Materials & Supplies Chem. Coagulants - Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Chemicals Odor Control - Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Disinfection -Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Chemicals - Cogen Op. 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Miscellaneous Chemicals 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Odor & Corrosion Control 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Gas, Diesel, & Oil -Total 970 1,500 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 As Fuel Tools 2,890 96,800 94,800 97,644 100,573 103,591 106,698 109,899 113,196 116,592 120,090 As Tools and Small Equipment Safety Equipment/Tools 412,430 211,932 211,934 218,292 224,841 231,586 238,534 245,690 253,060 260,652 268,472 As Tools and Small Equipment Solv,Paint,JanitorSupplies 2,140 2,606 11,612 11,960 12,319 12,689 13,069 13,461 13,865 14,281 14,710 As Janitorial Supplies Lab Chemicals & Supplies 80 75 75 77 80 82 84 87 90 92 95 As Chemicals Misc. Operating Supplies 18,340 16,603 24,106 24,829 25,574 26,341 27,132 27,945 28,784 29,647 30,537 As Misc. Operating Supplies Property Tax Fees 76,500 76,500 76,500 78,795 81,159 83,594 86,101 88,684 91,345 94,085 96,908 As Property Tax Fees $513,350 $406,016 $421,027 $433,658 $446,668 $460,068 $473,870 $488,086 $502,728 $517,810 $533,344 Total Op Materials & Supplies Contractual Services Solids Removal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Solids Removal Other Waste Disposal Grit & Screenings Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 192,500 376,200 376,200 387,486 399,111 411,084 423,416 436,119 449,202 462,679 476,559 As Other Waste Disposal Groundskeeping 177,040 200,000 200,000 206,000 212,180 218,545 225,102 231,855 238,810 245,975 253,354 As Grounds Keeping Janitorial 650,000 659,488 679,273 699,651 720,641 742,260 764,528 787,464 811,087 835,420 860,483 As Janitorial Outside Lab Services 500 2,000 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 As Misc. Services Oxygen - O& M contract 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies County Service Fee 503,672 518,782 534,345 550,375 566,887 583,893 601,410 619,452 638,036 657,177 676,892 As Miscellaneous Expense Temporary Services 162,480 210,000 210,000 216,300 222,789 229,473 236,357 243,448 250,751 258,274 266,022 As Misc. Services Security Services 1,716,007 1,716,007 1,716,007 1,767,487 1,820,512 1,875,127 1,931,381 1,989,322 2,049,002 2,110,472 2,173,786 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 78,125 83,125 78,125 80,469 82,883 85,369 87,930 90,568 93,285 96,084 98,966 As Misc. Services 3,4324 80, 3,765,602 53,795,950 $3,909,829 $4,027,123 $4,147,937 $4,272,375 $4,400,546 $4,532,563 $4,668,540 $4,808,596 Total Contractual Services 10/29/2022 4 DOrafjL OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Management & Administrative Services Page 3 of 17 Estimated Preliminary Preliminary Projected CV 7n71_77 CV 1.17_72 cv 7n72_7A cv 7n7A_7C uv 7n7C_7G cv in a-77 cv 7n77_74 ry in-7o uv 7n70_2n cv 7n2n_21 uv 7n21_27 Notes 2,757,615 3,983,925 3,600,700 3,708,721 3,819,983 3,934,582 4,052,620 4,174,198 4,299,424 4,428,407 4,561,259 As Professional Services 0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring 4,963,600 4,418,183 4,624,215 4,762,941 4,905,830 5,053,005 5,204,595 5,360,733 5,521,555 5,687,201 5,857,817 As Repairs & Maintenance 502,500 521,267 536,905 553,012 569,603 586,691 604,291 622,420 641,093 660,325 680,135 As Telephone 0 0 0 0 0 0 0 0 0 0 0 As Fuel 161,580 130,000 140,000 144,200 148,526 152,982 157,571 162,298 167,167 172,182 177,348 As Natural Gas 790,000 725,000 755,000 777,650 800,980 825,009 849,759 875,252 901,509 928,555 956,411 As Power 9,930 0 0 0 0 0 0 0 0 0 0 As Water 1,464,010 1,376,267 1,431,905 1,474,862 1,519,108 1,564,681 1,611,622 1,659,970 1,709,769 1,761,063 1,813,894 2,454,140 2,854,714 3,112,978 3,206,367 3,302,558 3,401,635 3,503,684 3,608,795 3,717,059 3,828,570 3,943,427 As Misc. Operating Supplies 0 1,469,747 1,523,397 1,569,099 1,616,172 1,664,657 1,714,597 1,766,035 1,819,016 1,873,586 1,929,794 As Miscellaneous Expense 65,030 121,670 121,670 125,320 129,080 132,952 136,941 141,049 145,280 149,639 154,128 As Other Non -Operating Costs $18,002,086 $21,500,936 $21,303,677 $21,942,787 $22,601,071 $23,279,103 $23,977,476 $24,696,800 $25,437,704 $26,200,836 $26,986,861 $43,178,520 $47,714,229 $48,929,702 $50,397,593 $51,909,521 $53,466,806 $55,070,811 $56,722,935 $58,424,623 $60,177,362 $61,982,683 (2,604,700) (3,299,900) (3,299,900) (3,398,897) (3,500,864) (3,605,890) (3,714,067) (3,825,489) (3,940,253) (4,058,461) (4,180,215) As Miscellaneous Expense 18,420 18,370 18,370 18,921 19,489 20,073 20,676 21,296 21,935 22,593 23,271 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense ( 2,586,280) (3,281,530) (3,281,530) (3,379,976) (3,481,375) (3,585,816) (3,693,391) (3,804,193) (3,918,318) (4,035,868) (4,156,944) $40,592,240 $44,432,699 $45,648,172 $47,017,617 $48,428,146 $49,880,990 $51,377,420 $52,918,742 $54,506,305 $56,141,494 $57,825,739 10/29/2022 5 DOrafjL OC San Orange County Sanitation District Cost of Service Rate Study Page 4 cf 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Environmental Services Department Salaries, Wages,& Benefits $14,694,900 $16,016,900 $16,904,000 $17,411,120 $17,933,454 $18,471,457 $19,025,601 $19,596,369 $20,184,260 $20,789,788 $21,413,481 As Salaries, Labor & Benefits Materials, Supplies, & Services Total Administrative Exp $133,360 $139,750 $136,300 $140,389 $144,601 $148,939 $153,407 $158,009 $162,749 $167,632 $172,661 As Miscellaneous Expense Total Printing & Publication 12,580 11,500 14,000 14,420 14,853 15,298 15,757 16,230 16,717 17,218 17,735 As Misc. Services Training & Meetings 0 0 0 Meetings- Total 4,450 31,815 31,815 32,769 33,753 34,765 35,808 36,882 37,989 39,128 40,302 As Training & Meetings Training - Total 11,035 121,030 135,840 139,915 144,113 148,436 152,889 157,476 162,200 167,066 172,078 As Training & Meetings Total Training & Meetings $161,425 $304,095 $317,955 $327,494 $337,318 $347,438 $357,861 $368,597 $379,655 $391,045 $402,776 Operating Materials & Supplies Chem. Coagulants - Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Chemicals Odor Control - Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Disinfection -Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Chemicals - CogenOp. 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Miscellaneous Chemicals 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Odor & Corrosion Control 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Gas, Diesel, & Oil - Total 14,960 22,000 24,000 24,720 25,462 26,225 27,012 27,823 28,657 29,517 30,402 As Fuel Tools 24,200 151,700 126,700 130,501 134,416 138,449 142,602 146,880 151,286 155,825 160,500 As Tools and Small Equipment Safety Equipment/Tools 57,800 85,800 70,800 72,924 75,112 77,365 79,686 82,077 84,539 87,075 89,687 As Tools and Small Equipment Solv,Paint,JanitorSupplies 17,250 17,500 17,500 18,025 18,566 19,123 19,696 20,287 20,896 21,523 22,168 As Janitorial Supplies Lab Chemicals & Supplies 619,560 655,000 667,500 687,525 708,151 729,395 751,277 773,815 797,030 820,941 845,569 As Chemicals Misc. Operating Supplies 6,160 7,160 7,160 7,375 7,596 7,824 8,059 8,300 8,549 8,806 9,070 As Misc. Operating Supplies Property Tax Fees 0 0 0 0 0 0 0 0 0 0 0 As Property Tax Fees $739,930 $939,160 $913,660 $941,070 $969,302 $998,381 $1,028,332 $1,059,182 $1,090,958 $1,123,687 $1,157,397 Total Op Materials & Supplies Contractual Services Solids Removal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Solids Removal Other Waste Disposal 0 0 0 Grit & Screenings Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Groundskeeping 0 0 0 0 0 0 0 0 0 0 0 As Grounds Keeping Janitorial 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Outside Lab Services 201,000 325,000 325,000 334,750 344,793 355,136 365,790 376,764 388,067 399,709 411,700 As Misc. Services Oxygen - O& M contract 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies County Service Fee 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense Temporary services 185,000 286,400 286,400 294,992 303,842 312,957 322,346 332,016 341,977 352,236 362,803 As Misc. Services Security Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Total Contractual Services $386,000 $611,400 5611,400 $629,742 $648,634 $668,093 $688,136 $708,780 $730,044 $751,945 $774,503 10/29/2022 6 DOraft7 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Environmental Services Department Page 5 of 17 Estimated Preliminary Preliminary Projected CV 7n71_77 CV 1.17_72 uv 7n72_7A ry 7n7A_7C uv 7n7C_7G cv in aG cv 7n77_7Y cv in14_70 N 7n70_2n cv 7n2n_21 N 7n21_27 Notes 336,795 1,271,221 1,397,000 1,438,910 1,482,077 1,526,540 1,572,336 1,619,506 1,668,091 1,718,134 1,769,678 As Professional Services 1,087,170 1,675,450 1,751,363 1,803,904 1,858,021 1,913,762 1,971,174 2,030,310 2,091,219 2,153,956 2,218,574 As Research & Monitoring 366,480 432,000 432,000 444,960 458,309 472,058 486,220 500,806 515,831 531,306 547,245 As Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 As Telephone 0 0 0 0 0 0 0 0 0 0 0 As Fuel 0 0 0 0 0 0 0 0 0 0 0 As Natural Gas 0 0 0 0 0 0 0 0 0 0 0 As Power 0 0 0 0 0 0 0 0 0 0 0 As Water 0 0 0 0 0 0 0 0 0 0 0 1,296,457 1,427,200 1,529,000 1,574,870 1,622,116 1,670,780 1,720,903 1,772,530 1,825,706 1,880,477 1,936,891 As Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 1,880 2,140 2,140 2,204 2,270 2,338 2,409 2,481 2,555 2,632 2,711 As Other Non -Operating Costs $4,376,137 $6,662,666 $6,954,518 $7,163,154 $7,378,048 $7,599,390 $7,827,371 $8,062,192 $8,304,058 $8,553,180 $8,809,775 $19,071,037 $22,679,566 $23,858,518 $24,574,274 $25,311,502 $26,070,847 $26,852,972 $27,658,561 $28,488,318 $29,342,968 $30,223,257 (2,800) (6,400) (6,400) (6,592) (6,790) (6,993) (7,203) (7,419) (7,642) (7,871) (8,107) As Miscellaneous Expense 43,750 43,750 43,750 45,063 46,414 47,807 49,241 50,718 52,240 53,807 55,421 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense (21,400) (23,200) (24,200) (24,926) (25,674) (26,444) (27,237) (28,054) (28,896) (29,763) (30,656) As Miscellaneous Expense (26,400) (28,900) (30,140) (31,044) (31,976) (32,935) (33,923) (34,941) (35,989) (37,068) (38,180) As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense ( 6,850) (14,750) (16,990) (17,500) (18,025) (18,565) (19,122) (19,696) (20,287) (20,896) (21,522) $19,064,187 $22,664,816 $23,841,528 $24,556,774 $25,293,477 $26,052,281 $26,833,850 $27,638,865 $28,468,031 $29,322,072 $30,201,734 10/29/2022 7 DOrafjL OC San Orange County Sanitation District Cost of Service Rate Study Page 6 of 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Engineering Department Salaries, Wages,& Benefits $22,127,000 $24,241,135 $25,276,435 $26,034,728 $26,815,770 $27,620,243 $28,448,850 $29,302,316 $30,181,385 $31,086,827 $32,019,432 As Salaries, Labor & Benefits Materials, Supplies, & Services Total Administrative Exp $172,091 $185,830 $189,540 $195,226 $201,083 $207,115 $213,329 $219,729 $226,321 $233,110 $240,104 As Miscellaneous Expense Total Printing & Publication 8,700 3,300 3,150 3,245 3,342 3,442 3,545 3,652 3,761 3,874 3,990 As Misc. Services Training & Meetings Meetings - Total 916 9,380 6,870 7,076 7,288 7,507 7,732 7,964 8,203 8,449 8,703 As Training & Meetings Training - Total 29,200 111,430 80,660 83,080 85,572 88,139 90,784 93,507 96,312 99,202 102,178 As Training & Meetings Total Training & Meetings $210,907 $309,940 $280,220 $288,627 $297,285 $306,204 $315,390 $324,852 $334,597 $344,635 $354,974 Operating Materials & Supplies Chem. Coagulants - Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Chemicals Odor Control - Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Disinfection -Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Chemicals - CogenOp. 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Miscellaneous Chemicals 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Odor & Corrosion Control 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Gas, Diesel, & Oil -Total 2,380 2,500 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 As Fuel Tools 4,200 4,000 4,000 4,120 4,244 4,371 4,502 4,637 4,776 4,919 5,067 As Tools and Small Equipment Safety Equipment/Tools 13,120 12,600 11,600 11,948 12,306 12,676 13,056 13,448 13,851 14,267 14,695 As Tools and Small Equipment Solv,Paint,JanitorSupplies 950 1,300 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 As Janitorial Supplies Lab Chemicals & Supplies 20 20 20 21 21 22 23 23 24 25 25 As Chemicals Misc. Operating Supplies 500 900 950 979 1,008 1,038 1,069 1,101 1,134 1,168 1,203 As Misc. Operating Supplies Property Tax Fees 0 0 0 0 0 0 0 0 0 0 0 As Property Tax Fees $21,170 $21,320 $20,470 $21,084 $21,717 $22,368 $23,039 $23,730 $24,442 $25,176 $25,931 Total Op Materials & Supplies Contractual Services Solids Removal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Solids Removal Other Waste Disposal Grit & Screenings Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Groundskeeping 0 0 0 0 0 0 0 0 0 0 0 As Grounds Keeping Janitorial 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Outside Lab Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Oxygen - O& M contract 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies County Service Fee 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense Temporary Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Security Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 400,002 600,000 600,000 618,000 636,540 655,636 675,305 695,564 716,431 737,924 760,062 As Misc. Services 400,000 600,000 5600,000 $618,000 $636,540 $655,636 $675,305 $695,564 $716,431 $737,924 $760,062 Total Contractual Services 10/29/2022 8 DOraft7 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Engineering Department Page 7 cf 17 Estimated Preliminary Preliminary Projected cv v I I- cv -2- cv ­n_x cv ­. cv I-- cv ­,, cv cv Imo_an cv ­n­ cv inai­ Notes 660,550 804,000 810,000 834,300 859,329 885,109 911,662 939,012 967,182 996,198 1,026,084 As Professional Services 0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring 300 1,400 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 As Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 As Telephone 0 0 0 0 0 0 0 0 0 0 0 As Fuel 0 0 0 0 0 0 0 0 0 0 0 As Natural Gas 0 0 0 0 0 0 0 0 0 0 0 As Power 0 0 0 0 0 0 0 0 0 0 0 As Water $0 0 0 0 0 0 0 0 0 0 0 41,330 3,450 3,450 3,554 3,660 3,770 3,883 3,999 4,119 4,243 4,370 As Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 1,500 1,880 1,900 1,957 2,016 2,076 2,138 2,203 2,269 2,337 2,407 As Other Non -Operating Costs $1,335,757 $1,741,990 $1,717,440 $1,768,963 $1,822,032 $1,876,693 $1,932,994 $1,990,984 $2,050,713 $2,112,235 $2,175,602 $23,462,757 $25,983,125 $26,993,875 $27,803,691 $28,637,802 $29,496,936 $30,381,844 $31,293,299 $32,232,098 $33,199,061 $34,195,033 2,653,800 3,253,500 3,253,500 3,351,105 3,451,638 3,555,187 3,661,843 3,771,698 3,884,849 4,001,395 4,121,436 As Miscellaneous Expense 41,780 41,780 41,780 43,033 44,324 45,654 47,024 48,434 49,888 51,384 52,926 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense (6,790,390) (7,422,300) (7,735,100) (7,967,153) (8,206,168) (8,452,353) (8,705,923) (8,967,101) (9,236,114) (9,513,197) (9,798,593) As Miscellaneous Expense (12,986,930) (12,967,050) (13,514,110) (13,919,533) (14,337,119) (14,767,233) (15,210,250) (15,666,557) (16,136,554) (16,620,651) (17,119,270) As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense ($17,081,740) ($17,094,070) ($17,953,930) ($18,492,548) ($19,047,324) ($19,618,744) ($20,207,306) ($20,813,526) ($21,437,931) ($22,081,069) ($22,743,501) $6,381,017 $8,889,055 $9,039,945 $9,311,143 $9,590,478 $9,878,192 $10,174,538 $10,479,774 $10,794,167 $11,117,992 $11,451,532 10/29/2022 9 DOraft7 OC San Orange County Sanitation District Cost of Service Rate Study Page 8 cf 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Operations & Maintenance Administration Salaries, Wages,& Benefits $279,500 $586,900 $619,400 $637,982 $657,121 $676,835 $697,140 $718,054 $739,596 $761,784 $784,637 As Salaries, Labor & Benefits Materials, Supplies, & Services Total Administrative Exp $0 $1,530 $1,530 $1,576 $1,623 $1,672 $1,722 $1,774 $1,827 $1,882 $1,938 As Miscellaneous Expense Total Printing & Publication 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Training & Meetings Meetings - Total 0 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Training & Meetings Training - Total 0 0 0 0 0 0 0 0 0 0 0 As Training & Meetings Total Training & Meetings $0 $2,530 $2,530 $2,606 $2,684 $2,765 $2,848 $2,933 $3,021 $3,112 $3,205 Operating Materials & Supplies Chem. Coagulants - Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Chemicals Odor Control - Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Disinfection -Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Chemicals - CogenOp. 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Miscellaneous Chemicals 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Odor & Corrosion Control 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Gas, Diesel, & Oil - Total 0 0 0 0 0 0 0 0 0 0 0 As Fuel Tools 0 0 0 0 0 0 0 0 0 0 0 As Tools and Small Equipment Safety Equipment/Tools 0 0 0 0 0 0 0 0 0 0 0 As Tools and Small Equipment Solv,Paint,JanitorSupplies 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Supplies Lab Chemicals & Supplies 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies Property Tax Fees 0 0 0 0 0 0 0 0 0 0 0 As Property Tax Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Op Materials & Supplies Contractual Services Solids Removal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Solids Removal Other Waste Disposal Grit & Screenings Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Groundskeeping 0 0 0 0 0 0 0 0 0 0 0 As Grounds Keeping Janitorial 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Outside Lab Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Oxygen - O& M contract 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies County Service Fee 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense Temporary Services 0 78,000 82,000 84,460 86,994 89,604 92,292 95,060 97,912 100,850 103,875 As Misc. Services Security Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Total Contractual Services $0 $78,000 $82,000 $84,460 $86,994 $89,604 $92,292 $95,060 $97,912 $100,850 $103,875 10/29/2022 1 ODrOaft57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Operations & Maintenance Administration Page 9 cf 17 Estimated Preliminary Preliminary Projected cv I I- cv -2- cv ­n_x cv ­. cv I-- cv ­,, cv v Imo_an cv ­n­ cv inai­ Notes 1,000 5,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 As Professional Services 0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring 0 0 0 0 0 0 0 0 0 0 0 As Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 As Telephone 0 0 0 0 0 0 0 0 0 0 0 As Fuel 0 0 0 0 0 0 0 0 0 0 0 As Natural Gas 0 0 0 0 0 0 0 0 0 0 0 As Power 0 0 0 0 0 0 0 0 0 0 0 As Water $0 0 0 0 0 0 0 0 0 0 0 90 100 100 103 106 109 113 116 119 123 127 As Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 40 40 41 42 44 45 46 48 49 51 As Other Non -Operating Costs $0 $0 $0 $92,360 $95,131 $97,985 $100,924 $103,952 $107,071 $110,283 $113,591 $0 $0 $0 $730,342 $752,252 $774,820 $798,065 $822,006 $846,667 $872,067 $898,229 (10,300) (5,700) (5,700) (5,871) (6,047) (6,229) (6,415) (6,608) (6,806) (7,010) (7,221) As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense ($10,300) ($5,700) ($5,700) ($5,871) ($6,047) ($6,229) ($6,415) ($6,608) ($6,806) ($7,010) ($7,221) $270,290 $666,870 $703,370 $724,471 $746,205 $768,591 $791,649 $815,399 $839,861 $865,056 $891,008 10/29/2022 1Drajt57 OC San Orange County Sanitation District Cost of Service Rate Study Page 10 cf 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Collection Facilities Salaries, Wages,& Benefits $4,406,800 $4,616,300 $4,833,800 $4,978,814 $5,128,178 $5,282,024 $5,440,484 $5,603,699 $5,771,810 $5,944,964 $6,123,313 As Salaries, Labor & Benefits Materials, Supplies, & Services Total Administrative Exp $58,929 $14,290 $14,730 $15,172 $15,627 $16,096 $16,579 $17,076 $17,588 $18,116 $18,660 As Miscellaneous Expense Total Printing & Publication 1,250 1,300 1,300 1,339 1,379 1,421 1,463 1,507 1,552 1,599 1,647 As Misc. Services Training & Meetings Meetings - Total 1,000 5,660 5,660 5,830 6,005 6,185 6,370 6,561 6,758 6,961 7,170 As Training & Meetings Training - Total 10,000 34,870 28,070 28,912 29,779 30,673 31,593 32,541 33,517 34,523 35,558 As Training & Meetings Total Training & Meetings $71,179 $56,120 $49,760 $51,253 $52,790 $54,374 $56,005 $57,685 $59,416 $61,199 $63,034 Operating Materials & Supplies Chem. Coagulants - Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Chemicals Odor Control - Total 5,807,789 7,025,286 8,229,078 8,475,950 8,730,229 8,992,136 9,261,900 9,539,757 9,825,949 10,120,728 10,424,350 As Chemicals Disinfection -Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Chemicals - CogenOp. 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Miscellaneous Chemicals 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Odor & Corrosion Control 20,000 50,000 50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339 As Chemicals Gas, Diesel, & Oil - Total 18,960 26,500 36,500 37,595 38,723 39,885 41,081 42,314 43,583 44,890 46,237 As Fuel Tools 63,000 90,000 90,000 92,700 95,481 98,345 101,296 104,335 107,465 110,689 114,009 As Tools and Small Equipment Safety Equipment/Tools 44,690 95,000 66,880 68,886 70,953 73,082 75,274 77,532 79,858 82,254 84,722 As Tools and Small Equipment Solv,Paint,JanitorSupplies 18,216 18,580 18,952 19,521 20,106 20,709 21,331 21,971 22,630 23,309 24,008 As Janitorial Supplies Lab Chemicals & Supplies 416 424 432 445 458 472 486 501 516 531 547 As Chemicals Misc. Operating Supplies 10,000 13,000 14,000 14,420 14,853 15,298 15,757 16,230 16,717 17,218 17,735 As Misc. Operating Supplies Property Tax Fees 0 0 0 0 0 0 0 0 0 0 0 As Property Tax Fees $5,983,071 $7,318,790 $8,505,842 $8,761,017 $9,023,848 $9,294,563 $9,573,400 $9,860,602 $10,156,420 $10,461,113 $10,774,946 Total Op Materials & Supplies Contractual Services Solids Removal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Solids Removal Other Waste Disposal Grit & Screenings Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Groundskeeping 0 0 0 0 0 0 0 0 0 0 0 As Grounds Keeping Janitorial 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Outside Lab Services 15,000 20,000 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 As Misc. Services Oxygen - O& M contract 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies County Service Fee 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense Temporary Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Security Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Total Contractual Services $15,000 $20,000 $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 10/29/2022 1-2Drraft57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Collection Facilities Page 11 of 17 Estimated Preliminary Preliminary Projected CV 7n71_77 CV 1.17_72 uv 7n72_7A ry 7n7A_7C Cv 7n7C_7c ry 7n-77 cv 7n77_7o cv in14_70 uv 7n70_2n cv 7n2n_21 uv 7n21_27 Notes 181,560 165,000 110,000 113,300 116,699 120,200 123,806 127,520 131,346 135,286 139,345 As Professional Services 0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring 6,575,792 5,922,271 4,161,460 4,286,304 4,414,893 4,547,340 4,683,760 4,824,273 4,969,001 5,118,071 5,271,613 As Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 As Telephone 0 0 0 0 0 0 0 0 0 0 0 As Fuel 0 0 0 0 0 0 0 0 0 0 0 As Natural Gas 695,140 709,042 723,223 744,920 767,267 790,285 813,994 838,414 863,566 889,473 916,157 As Power 23,490 23,959 24,438 25,171 25,926 26,704 27,505 28,330 29,180 30,056 30,957 As Water 718,630 733,001 747,661 770,091 793,194 816,989 841,499 866,744 892,746 919,529 947,115 66,360 66,360 68,076 70,118 72,222 74,388 76,620 78,919 81,286 83,725 86,237 As Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 370 600 600 618 637 656 675 696 716 738 760 As Other Non -Operating Costs $13,611,962 $14,282,142 $13,658,399 $14,068,151 $14,490,195 $14,924,901 $15,372,648 $15,833,828 $16,308,843 $16,798,108 $17,302,051 $18,018,762 $18,898,442 $18,492,199 $19,046,965 $19,618,374 $20,206,925 $20,813,133 $21,437,527 $22,080,653 $22,743,072 $23,425,364 (17,400) (21,500) (21,500) (22,145) (22,809) (23,494) (24,198) (24,924) (25,672) (26,442) (27,236) As Miscellaneous Expense 222,740 222,740 222,740 229,422 236,305 243,394 250,696 258,217 265,963 273,942 282,160 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense (19,780) (21,300) (22,900) (23,587) (24,295) (25,023) (25,774) (26,547) (27,344) (28,164) (29,009) As Miscellaneous Expense (31,230) (29,980) (32,230) (33,197) (34,193) (35,219) (36,275) (37,363) (38,484) (39,639) (40,828) As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 154,330 $149,960 $146,110 $150,493 $155,008 $159,658 $164,448 $169,382 $174,463 $179,697 $185,088 $18,173,092 $19,048,402 $18,638,309 $19,197,458 $19,773,382 $20,366,583 $20,977,581 $21,606,908 $22,255,116 $22,922,769 $23,610,452 10/29/2022 13Do�57 Oc San Orange County Sanitation District Cost of Service Rate Study Page 12 of 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Fleet Services Salaries, Wages,& Benefits $1,271,300 $1,246,600 $1,311,300 $1,350,639 $1,391,158 $1,432,893 $1,475,880 $1,520,156 $1,565,761 $1,612,734 $1,661,116 As Salaries, Labor & Benefits Materials, Supplies, & Services Total Administrative Exp $3,200 $4,630 $4,710 $4,851 $4,997 $5,147 $5,301 $5,460 $5,624 $5,793 $5,966 As Miscellaneous Expense Total Printing & Publication 150 150 150 155 159 164 169 174 179 184 190 As Misc. Services Training & Meetings Meetings- Total 0 500 500 515 530 546 563 580 597 615 633 As Training & Meetings Training - Total 0 22,150 6,700 6,901 7,108 7,321 7,541 7,767 8,000 8,240 8,487 As Training & Meetings Total Training & Meetings $3,350 $27,430 $12,060 $12,422 $12,794 $13,178 $13,574 $13,981 $14,400 $14,832 $15,277 Operating Materials & Supplies Chem. Coagulants - Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Chemicals Odor Control - Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Disinfection -Total 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Chemicals - CogenOp. 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Miscellaneous Chemicals 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Odor & Corrosion Control 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Gas, Diesel, & Oil - Total 408,500 346,485 355,110 365,763 376,736 388,038 399,679 411,670 424,020 436,741 449,843 As Fuel Tools 60,000 69,000 71,000 73,130 75,324 77,584 79,911 82,308 84,778 87,321 89,941 As Tools and Small Equipment Safety Equipment/Tools 6,000 6,000 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 As Tools and Small Equipment Solv,Paint,JanitorSupplies 1,470 1,500 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 As Janitorial Supplies Lab Chemicals & Supplies 30 50 50 52 53 55 56 58 60 61 63 As Chemicals Misc. Operating Supplies 450 500 500 515 530 546 563 580 597 615 633 As Misc. Operating Supplies Property Tax Fees 0 0 0 0 0 0 0 0 0 0 0 As Property Tax Fees $476,450 $423,535 $434,160 $447,185 $460,600 $474,418 $488,651 $503,310 $518,410 $533,962 $549,981 Total Op Materials & Supplies Contractual Services Solids Removal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Solids Removal Other Waste Disposal Grit & Screenings Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Groundskeeping 0 0 0 0 0 0 0 0 0 0 0 As Grounds Keeping Janitorial 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Outside Lab Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Oxygen - O& M contract 0 0 0 0 0 0 0 0 0 0 0 As Misc. Operating Supplies County Service Fee 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense Temporary Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Security Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Total Contractual Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 10/29/2022 4Draft57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Fleet Services Page 13 of 17 Estimated Preliminary Preliminary Projected CV 7l17'I_77 Cv ini7_72 uv 7n72_7A ry 7n7A_7C Cv 7n7C_7c ry 7n-77 cv 7n77_7Y cv in a4 uv 7n70_2n cv 7n2n_21 uv 7n21_27 Notes 7,000 12,025 12,025 12,386 12,757 13,140 13,534 13,940 14,358 14,789 15,233 As Professional Services 0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring 567,332 648,669 648,669 668,129 688,173 708,818 730,083 751,985 774,545 797,781 821,714 As Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 As Telephone 75,000 55,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 As Fuel 0 0 0 0 0 0 0 0 0 0 0 As Natural Gas 0 0 0 0 0 0 0 0 0 0 0 As Power 0 0 0 0 0 0 0 0 0 0 0 As Water 75,000 55,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 10,240 50,500 50,500 52,015 53,575 55,183 56,838 58,543 60,300 62,109 63,972 As Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 150 200 200 206 212 219 225 232 239 246 253 As Other Non -Operating Costs $1,139,522 $1,217,359 $1,217,614 $1,254,142 $1,291,767 $1,330,520 $1,370,435 $1,411,548 $1,453,895 $1,497,512 $1,542,437 $2,410,822 $2,463,959 $2,528,914 $2,604,781 $2,682,925 $2,763,413 $2,846,315 $2,931,704 $3,019,656 $3,110,245 $3,203,553 53,000 73,300 73,300 75,499 77,764 80,097 82,500 84,975 87,524 90,150 92,854 As Miscellaneous Expense (452,350) (452,350) (452,350) (465,921) (479,898) (494,295) (509,124) (524,398) (540,130) (556,333) (573,023) As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense ( 399,350) (379,050) (379,050) (390,422) (402,134) (414,198) (426,624) (439,423) (452,606) (466,184) (480,169) $2,011,472 $2,084,909 $2,149,864 $2,214,360 $2,280,791 $2,349,214 $2,419,691 $2,492,282 $2,567,050 $2,644,062 $2,723,383 10/29/2022 15 -Draft 57 Oc San Orange County Sanitation District Cost of Service Rate Study Page 14 of 17 Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes Plant No. 1 & 2 Operations & Maintenance Salaries, Wages,& Benefits $37,172,700 $39,850,454 $41,804,054 $43,058,176 $44,349,921 $45,680,419 $47,050,831 $48,462,356 $49,916,227 $51,413,713 $52,956,125 As Salaries, Labor & Benefits Materials, Supplies, & Services Total Administrative Exp $199,220 $268,760 $202,250 $208,318 $214,567 $221,004 $227,634 $234,463 $241,497 $248,742 $256,204 As Miscellaneous Expense Total Printing & Publication 14,821 25,700 25,700 26,471 27,265 28,083 28,926 29,793 30,687 31,608 32,556 As Misc. Services Training & Meetings Meetings - Total 1,850 5,420 5,420 5,583 5,750 5,923 6,100 6,283 6,472 6,666 6,866 As Training & Meetings Training - Total 34,010 118,800 157,780 162,513 167,389 172,410 177,583 182,910 188,398 194,049 199,871 As Training & Meetings $249,901 $418,680 $391,150 $402,885 $414,971 $427,420 $440,243 $453,450 $467,054 $481,065 $495,497 Total Training & Meetings Operating Materials & Supplies Chem. Coagulants - Total $11,204,746 $12,103,086 $12,585,600 $12,963,168 $13,352,063 $13,752,625 $14,165,204 $14,590,160 $15,027,865 $15,478,701 $15,943,062 As Chemicals Odor Control - Total 741,194 818,000 830,500 855,415 881,077 907,510 934,735 962,777 991,660 1,021,410 1,052,053 As Chemicals Disinfection -Total 163,080 198,500 162,500 167,375 172,396 177,568 182,895 188,382 194,033 199,855 205,850 As Chemicals Chemicals - CogenOp. 305,000 350,000 384,000 395,520 407,386 419,607 432,195 445,161 458,516 472,272 486,440 As Chemicals Miscellaneous Chemicals 42,000 85,000 96,000 98,880 101,846 104,902 108,049 111,290 114,629 118,068 121,610 As Chemicals Odor & Corrosion Control 0 0 0 0 0 0 0 0 0 0 0 As Chemicals Gas, Diesel, & Oil -Total 349,630 406,400 406,400 418,592 431,150 444,084 457,407 471,129 485,263 499,821 514,815 As Fuel Tools 444,400 454,000 454,000 467,620 481,649 496,098 510,981 526,310 542,100 558,363 575,114 As Tools and Small Equipment Safety Equipment/Tools 491,950 522,000 524,000 539,720 555,912 572,589 589,767 607,460 625,683 644,454 663,788 As Tools and Small Equipment Solv,Paint,JanitorSupplies 86,100 93,500 93,500 96,305 99,194 102,170 105,235 108,392 111,644 114,993 118,443 As Janitorial Supplies Lab Chemicals & Supplies 22,020 24,750 24,750 25,493 26,257 27,045 27,856 28,692 29,553 30,439 31,353 As Chemicals Misc. Operating Supplies 134,680 146,000 146,000 150,380 154,891 159,538 164,324 169,254 174,332 179,562 184,948 As Misc. Operating Supplies Property Tax Fees 0 0 0 0 0 0 0 0 0 0 0 As Property Tax Fees $13,984,800 $15,201,236 $15,707,250 $16,178,468 $16,663,822 $17,163,736 $17,678,648 $18,209,008 $18,755,278 $19,317,936 $19,897,474 Total Op Materials & Supplies Contractual Services Solids Removal $12,030,000 $13,740,000 $14,790,000 $15,233,700 $15,690,711 $16,161,432 $16,646,275 $17,145,664 $17,660,033 $18,189,834 $18,735,530 As Solids Removal Other Waste Disposal Grit & Screenings Disposal 650,000 715,000 746,000 768,380 791,431 815,174 839,630 864,818 890,763 917,486 945,010 As Other Waste Disposal Other Residual Solids 0 0 0 0 0 0 0 0 0 0 0 As Other Waste Disposal Other Waste Disposal 126,000 126,000 126,000 129,780 133,673 137,684 141,814 146,069 150,451 154,964 159,613 As Other Waste Disposal Groundskeeping 0 0 0 0 0 0 0 0 0 0 0 As Grounds Keeping Janitorial 0 0 0 0 0 0 0 0 0 0 0 As Janitorial Outside Lab Services 5,000 10,000 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 As Misc. Services Oxygen - O & M contract 415,000 476,000 561,000 577,830 595,165 613,020 631,410 650,353 669,863 689,959 710,658 As Misc. Operating Supplies County Service Fee 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense Temporary Services 85,990 0 0 0 0 0 0 0 0 0 0 As Misc. Services Security Services 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services In -Plant Line Cleaning 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Other 0 0 0 0 0 0 0 0 0 0 0 As Misc. Services Total Contractual Services 13,311,990 15,067,000 16,233,000 $16,719,990 $17,221,590 $17,738,237 $18,270,385 $18,818,496 $19,383,051 $19,964,542 $20,563,479 10/29/2022 16Do�57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Total Professional Services Total Research & Monitoring Total Repairs & Maintenance Utilities Telephone Diesel For Generators Natural Gas - Total Power - Total Water -Total Total Utilities Total Other Operat. Supplies Total General Manager Total Other Non -Operating Total Matls, Supply, & Svc. Oper Requirement Before Cost Allocation Cost Allocation: In/(Out) Svc Div to Line Div In/(Out) OCSD Equip Rental In/(Out) Lab Charges (Out) to CIP for Salary (Out) to CIP for OH In/<Out> to RA for Salary In/<Out> to RA for OH In/<Out> to RA for Non -Sal Cost Allocation - Total Total Plant No. 1 & 2 Operations & Maintenance Page 15 of 17 Estimated Preliminary Preliminary Projected CV 7n71_77 CV 1.17_72 uv 7n72_7A ry 7n7A_7C uv 7n7C_7G cv in aG cv 7n77_7Y cv in14_70 N 7n70_2n cv 7n2n_21 N 7n21_27 Notes 1,285,790 1,584,000 1,632,000 1,680,960 1,731,389 1,783,330 1,836,830 1,891,935 1,948,693 2,007,154 2,067,369 As Professional Services 0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring 22,281,730 20,712,851 23,917,195 24,634,711 25,373,752 26,134,965 26,919,014 27,726,584 28,558,382 29,415,133 30,297,587 As Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 As Telephone 31,410 0 0 0 0 0 0 0 0 0 0 As Fuel 1,050,695 1,447,000 1,395,000 1,436,850 1,479,956 1,524,354 1,570,085 1,617,187 1,665,703 1,715,674 1,767,144 As Natural Gas 6,574,619 8,340,000 8,048,000 8,289,440 8,538,123 8,794,267 9,058,095 9,329,838 9,609,733 9,898,025 10,194,966 As Power 995.200 852,000 876,400 902,692 929,773 957,666 986,396 1,015,988 1,046,467 1,077,861 1,110,197 As Water 9,710 14,300 14,300 14,729 15,171 15,626 16,095 16,578 17,075 17,587 18,115 As Misc. Operating Supplies 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 15,766 7,520 7,520 7,746 7,978 8,217 8,464 8,718 8,979 9,249 9,526 As Other Non -Operating Costs $59,791,611 $63,644,587 $68,221,815 $70,268,469 $72,376,524 $74,547,819 $76,784,254 $79,087,781 $81,460,415 $83,904,227 $86,421,354 $96,964,311 $103,495,041 $110,025,869 $113,326,645 $116,726,444 $120,228,238 $123,835,085 $127,550,137 $131,376,642 $135,317,941 $139,377,479 (646,820) 114,800 114,800 118,244 121,791 125,445 129,208 133,085 137,077 141,190 145,425 As Miscellaneous Expense 125,640 125,640 125,640 129,409 133,291 137,290 141,409 145,651 150,021 154,521 159,157 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense (159,160) (172,400) (180,700) (186,121) (191,705) (197,456) (203,379) (209,481) (215,765) (222,238) (228,905) As Miscellaneous Expense (197,000) (205,130) (215,020) (221,471) (228,115) (234,958) (242,007) (249,267) (256,745) (264,447) (272,381) As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense 0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense $96,086,971 $103,357,951 $109,870,589 $113,166,707 $116,561,708 $120,058,559 $123,660,316 $127,370,125 $131,191,229 $135,126,966 $139,180,775 10/29/2022 1 / ra - Oc San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Additional Expenditures (Input on Dashboard) Total Operations & Maintenance Expense Annual %Change in O&M Expense Capital Funding Analysis Capital Expenditures Plus: Future Renewal and Replacement Additional Capital Expenditures Capital Expenditures Transfer in from Other Funds to Pay for Capital Less: CIP Savings & Deferrals CFCC & SCFCC Revenue Grant Funding Revenue Bonds Low Interest Loans Capital Funded Through Rates (Capital Exp less Transfers Out Equity Purchases (Joint Operations) Self Insurance Fund Requirements Total Transfers Out Transfers In Blank Total Transfers In Debt Service 2010A Build America Bonds 2010C Build America Bonds 2011A 2012A 2012B 2014A Refunding 2015A Refunding 2016A Refunding 2017A Refunding 2018A 2021A Refunding 2022A Refunding New Low Interest Loan New COP Debt Issuance Costs Total Page 16 of 17 Estimated Preliminary Preliminary Projected — 7a71_17 CV1 17_72 uv --A CV 7n7A_7c Cv 7n7C_7G CV 7n-77 cv 7n77_7Y CV 7n74_7a CV 7n7a_2n — 7n2n_21 uv 7n21_27 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Notes $182,579,269 $201,144,702 $209,891,777 $216,188,530 $222,674,186 $229,354,412 $236,235,044 $243,322,095 $250,621,758 $258,140,411 $265,884,623 0% $203,320,511 $284,617,363 $329,320,433 $311,961,390 $321,793,493 $322,826,459 $324,753,539 $353,913,646 $308,176,430 $251,753,302 $249,061,975 $3,058,178,030 0 0 10,000,000 2,157,930 5,876,342 18,770,190 15,621,645 40,551,097 64,524,757 92,799,943 105,705,540 $356,007,444 0 0 0 0 0 0 0 0 0 0 0 $203,320,511 $284,617,363 $339,320,433 $314,119,320 $327,669,835 $341,596,649 $340,375,184 $394,464,743 $372,701,187 $344,553,245 $354,767,515 $0 ($16,449,864) ($24,012,792) ($32,206,601) ($26,986,247) ($48,638,749) ($45,384,259) ($45,113,230) ($28,580,844) $1,779,946 ($73,536,991) ($339,129,631) Input from CashfloA (17,205,244) (17,923,752) (18,533,000) (19,623,000) (19,779,000) (19,937,000) (20,103,000) (20,265,000) (20,430,000) (20,600,000) (20,768,000) Cashflow file 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $186,115,267 $250,243,747 $296,774,641 $262,289,719 $280,904,588 $273,020,900 $274,887,925 $329,086,513 $323,690,343 $325,733,191 $260,462,524 $2,877,094,091 $287,709,409.08 $0 $3,500,000 $3,500,000 $0 $0 $0 $0 $0 $0 $0 $0 3,269,700 3,690,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 $3,269,700 $7,190,000 $7,350,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 50 $0 50 $0 50 $0 50 $0 50 $0 50 $2,984,334 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 Debt Schedule 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 12,459,010 23,382,068 Debt Schedule 2,019,050 0 0 0 0 0 0 0 0 0 0 Debt Schedule 3,735,900 0 0 0 0 0 0 0 0 0 0 Debt Schedule 8,446,150 0 0 0 0 0 0 0 0 0 0 Debt Schedule 11,049,000 11,046,750 11,044,000 11,049,750 11,052,500 11,051,250 0 0 0 0 0 Debt Schedule 6,375,500 6,375,500 6,375,500 6,375,500 6,375,500 6,375,500 21,615,500 21,658,500 20,776,250 10,228,000 3,702,250 Debt Schedule 11,389,800 11,391,550 11,396,050 11,392,550 11,390,800 11,390,050 11,394,550 11,388,300 11,391,050 11,411,550 11,413,050 Debt Schedule 3,290,750 3,290,750 3,290,750 3,290,750 3,290,750 18,405,750 18,365,000 18,323,500 19,204,500 0 0 Debt Schedule 2,356,278 0 0 0 0 0 0 0 0 0 0 Debt Schedule 8,844,836 22,672,000 22,713,500 22,672,250 22,725,250 7,485,750 7,486,000 7,489,750 7,486,250 7,490,250 7,485,750 Debt Schedule 0 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 26,566,000 25,761,750 Debt Schedule 0 0 0 0 0 0 0 0 0 0 0 Calculated @ 4.5%for 20 yrs 0 0 0 0 0 0 0 0 0 0 0 Calculated @ 3% for 10 yrs 630,847 0 0 0 0 0 0 0 0 0 0 $67,846,455 $68,568,134 $68,611,384 $68,572,384 $68,626,384 $68,499,884 $72,652,634 $72,651,634 $72,649,634 $71,141,384 $74,731,442 10/29/2022 18 Draft- OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 2 - Sources & Application of Funds Estimated Preliminary Preliminary Projected CV 7a7�_77 Cv ini7_72 uv 7n72_7A ry 7n7A_7C Cv 7n7C_7c ry 7n-77 cv 7n77_7a cv inla_70 uv 7n70_2n cv 7n2n_21 uv 7n21_27 Total Revenue Requirements $439,810,691 $527,146,583 $582,627,802 $550,900,633 $576,055,158 $574,725,196 $587,625,603 $648,910,242 $650,811,735 $658,864,986 $604,928,589 Annual %Change in Revenue Requirement 10.5% -5.4% 4.6% -0.2% 2.2% 10.4% 0.3% 1.2% -8.2% Balance / (Deficiency) of Funds $27,783,678 ($41,697,380) ($96,972,432) ($75,455,111) ($94,954,942) ($88,780,484) ($96,368,469) ($150,369,539) ($146,951,001) ($149,287,344) ($91,862,646) Rate Adiust. as a % of Rate Rev 12.4% 28.8% 22.4% 28.1% 26.2% 28.3% 44.1% 42.9% 43.5% 26.7% Addt'I Rev from Proposed Adj. $0 $0 $11,775,690 $24,032,224 $36,787,971 $50,061,994 $63,874,084 $78,244,783 $93,195,414 $108,748,111 $124,925,848 Net Bal/(Def) of Funds After Rate Adj. $27,783,678 ($41,697,380) ($85,196,742) ($51,422,887) ($58,166,972) ($38,718,491) ($32,494,385) ($72,124,756) ($53,755,587) ($40,539,233) $33,063,202 Additional Rate Increase Needed 12.4% 25.3% 15.2% 17.2% 11.4% 9.5% 21.1% 15.7% 11.8% -9.6% Residential Bill (1 EDU) $343.00 $347.00 $359.15 $371.72 $384.73 $398.19 $412.13 $426.55 $441.48 $456.93 $472.93 $ Change Per Year 4.00 12.15 12.57 13.01 13.47 13.94 14.42 14.93 15.45 15.99 Cumulative $ Change per Year 4.00 16.15 28.72 41.73 55.19 69.13 83.55 98.48 113.93 129.93 Debt Service Coverage Ratio w/o CFCC Before Rate Adjustment 4.20 4.15 4.02 3.78 3.77 3.75 3.51 3.51 3.49 3.53 3.31 After Rate Adjustment 4.20 4.15 4.19 4.13 4.30 4.48 4.39 4.59 4.77 5.06 4.98 Target Coverage 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 Required Coverage 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Cash Reserves Wastewater Fund Working Cash Beginning Balance $964,225,022 $992,008,699 $964,903,926 $893,542,767 $855,236,335 $809,360,256 $782,492,679 $762,490,962 $700,247,633 $656,592,594 $625,598,205 Plus: Revenue 327,459,387 335,486,676 336,448,278 337,412,766 338,380,147 339,350,431 340,323,625 341,299,739 342,278,781 343,260,760 344,245,685 Plus: Additional Revenue with Rate Adjustment 0 0 11,775,690 24,032,224 36,787,971 50,061,994 63,874,084 78,244,783 93,195,414 108,748,111 124,925,848 Plus Misc Revenue 134,383,982 149,962,527 149,207,091 138,032,756 142,720,069 146,594,281 150,933,509 157,240,964 161,581,953 166,316,882 168,820,258 Plus: Debt Proceeds 0 0 0 0 0 0 0 0 0 0 0 Less: Expense (182,579,269) (201,144,702) (209,891,777) (216,188,530) (222,674,186) (229,354,412) (236,235,044) (243,322,095) (250,621,758) (258,140,411) (265,884,623) Less: Capital Funded Through Rates (186,115,267) (250,243,747) (296,774,641) (262,289,719) (280,904,588) (273,020,900) (274,887,925) (329,086,513) (323,690,343) (325,733,191) (260,462,524) Less: Equity Purchase/Self Insurance Fund (3,269,700) (7,190,000) (7,350,000) (3,850,000) (3,850,000) (3,850,000) (3,850,000) (3,850,000) (3,850,000) (3,850,000) (3,850,000) Less: Debt Service (67,846,455) (68,568,134) (68,611,384) (68,572,384) (68,626,384) (68,499,884) (72,652,634) (72,651,634) (72,649,634) (71,141,384) (74,731,442) Interest Earnings 5,751,000 14,592,608 13,834,583 13,017,455 12,390,793 11,850,014 11,493,667 10,881,429 10,100,548 9,544,845 9,631,947 Ending Balance $992,008,699 $964,903,926 $893,541,767 $855,136,335 $809,360,256 $782,491,679 $762,490,962 $700,247,633 $656,592,594 $625,598,205 $668,293,354 Target Balance 530,575,102 547,681,180 555,145,550 561,161,477 567,303,124 573,586,906 579,590,739 585,603,049 591,722,035 598,097,312 604,172,824 Page17cf17 Target Balance Calculation 50% Next Year Operating Expense 91,289,635 100,572,351 104,945,889 108,094,265 111,337,093 114,677,206 118,117,522 121,661,048 125,310,879 129,070,206 132,942,312 10% Next Year Operating Expense 18,257,927 20,114,470 20,989,178 21,618,853 22,267,419 22,935,441 23,623,504 24,332,210 25,062,176 25,814,041 26,588,462 100% Next Year AVG COP Svc. 22,781,248 19,266,567 18,515,692 17,726,192 16,898,192 16,027,442 15,116,317 14,055,817 12,942,317 11,773,192 10,508,221 50% average ten-year CIP Balance 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 153,752,792 Debt Svc @ 10% Outstanding COP 81,978,500 78,975,000 75,817,000 72,505,000 69,022,000 65,377,500 61,135,500 56,681,500 52,005,000 47,245,500 41,874,000 Self Funded Insurance @ $100M 100,000,000 100,000,000 103,500,000 107,122,500 110,871,788 114,752,300 118,768,631 122,925,533 127,227,926 131,680,904 136,289,735 Repl & Refurb 62,515,000 75,000,000 77,625,000 80,341,875 83,153,841 86,064,225 89,076,473 92,194,149 95,420,945 98,760,678 102,217,301 *Reserve Reduction (in accordance with Board action allowing a $40M reduction to total reserves) 0 0 Removed Target Reserve Balance 530,575,102 547,681,180 555,145,550 561,161,477 567,303,124 573,586,906 579,590,739 585,603,049 591,722,035 598,097,312 604,172,824 *Reserve Reduction (in accordance with Board action allowing a $40M reduction to total reserves) Notes 10/29/2022 19Do�57 oC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 3 - Capital Plan Page 1 of 7 vrojecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i o[al 11-33 Edinger Pump Station Replacement 11-34 Slater Pump Station Rehabilitation 1-23 Santa Ana Trunk Sewer Rehabilitation 1-24 Greenville Trunk Improvements 2-49 Taft Branch Improvements 2-72B Newhope-Placentia Trunk Replacement, Segment B 2-73 Yorba Linda Pump Station Removal and Dosing Station Installation 2-78 Santa Ana Canyon South River Trunk Rehabilitation 3-60 Knott - Miller Holder -Artesia Branch Rehabilitation 3-62 Westminster Blvd Force Main Replacement 3-64B Los Alamitos Trunk Sewer Rehabilitation 3-64C Los Alamitos Sub -Trunk and Westside Relief Interceptor Rehabilitation 3-66 Interstate 405 Widening Project Impacts on OCSD Sewers 3-67 Seal Beach Pump Station Replacement 3-68 Los Alamitos Sub -Trunk Extension 5-66 Crystal Cove Pump Station Rehabilitation 5-67 Bay Bridge Pump Station Replacement 5-68 Newport Beach Pump Station Pressurization Improvements 6-20 Fairview Trunk Rehabilitation 7-63 MacArthur Pump Station Rehabilitation 7-64 Main Street Pump Station Rehabilitation 7-65 Gisler -Red Hill Interceptor and Baker Force Main Rehabilitation 7-66 Sunflower and Red Hill Interceptor Repairs 7-68 MacArthur Force Main Improvements 7-69 North Trunk -Yorba Street Sub -Trunk Improvements Equipment Equipment Purchases FE10-21 Area 02 Craig Regional Park Manhole Improvements FE17-03 Battery Storage System at Plant No. 1 FE17-05 Plant 1 ICS Network Extension FE18-06 CenGen Instrument Air Compressors Replacement at Plant No. 1 FE18-08 West Trunk Bypass Sewer Realignment FE18-11 Headworks Explosive Gas Monitoring Systems at Plant No. 1 and No. 2 $653,065 $1,215,193 $932,542 $1,852,613 $7,634,876 $3,453,562 $1,456,768 $17,198,619 1,606,374 1,458,981 7,458,939 12,931,486 3,880,275 27,336,055 2,200,761 1,545,729 1,274,915 15,283,398 18,833,312 11,675,617 3,665,465 54,479,197 543,619 2,425,601 1,088,843 1,100,575 10,674,040 12,244,802 11,658,673 6,998,798 1,822,313 48,557,264 908,635 1,630,432 8,469,720 8,682,681 2,914,405 281,031 22,886,904 1,605,022 1,605,022 65,408 238,718 407,599 407,599 3,646,246 4,580,429 1,920,000 11,265,999 99,337 360,193 503,976 503,976 505,907 1,951,957 3,797,881 3,812,488 2,579,968 14,115,683 186,776 697,296 708,453 3,925,008 10,913,605 6,575,862 5,310,000 28,317,000 5,482,851 2,043,590 428,374 7,954,815 14,213,386 839,496 129,366 15,182,248 2,930,426 15,876,397 18,493,912 18,592,885 522,080 56,415,700 71,348 71,348 1,199,571 11,577,544 25,564,010 23,848,046 13,291,693 4,403,044 79,883,908 176,219 1,175,487 2,099,842 2,083,813 2,083,813 15,961,806 28,764,604 52,345,584 100,943 369,259 450,188 451,913 3,083,315 4,990,871 2,086,511 2,370,000 13,903,000 2,500,810 5,275,140 12,934,273 23,080,645 23,624,408 14,101,299 9,843,724 2,934,970 94,295,269 1,148,196 1,101,915 259,162 2,509,273 604,157 859,273 1,636,246 7,311,129 6,806,200 1,959,346 19,176,351 50,828 203,387 293,967 302,069 947,694 3,385,234 2,555,821 1,590,000 9,329,000 134,639 710,670 1,130,083 1,130,083 1,678,885 26,458,639 31,242,999 9,688,401 18,268,938 12,465,155 2,029,322 42,451,816 3,325,654 307,066 3,632,720 312,173 5,024,553 754,452 472,280 6,563,458 101,207 328,649 437,910 437,910 3,519,473 4,168,853 1,860,000 10,854,002 6,949,700 7,851,002 14,800,702 150,404 11,556 161,960 1,486 1,486 91,844 91,844 388,316 351,021 147,200 886,537 0 15,818 15,818 10/29/2022 20 oaft- OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 3 -Capital Plan Page 2 of 7 rrolecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i o[ai FE18-12 Erosion Control at Santa Ana River and Hamilton Ave 51,425 FE18-13 Redhill Relief Sewer Relocation at State Route 55 2,535,656 279,204 174,476 FE18-14 Plant Water Pipeline Replacement in Kinnison, Lindstrom, and Scott Tunnels at Plant No. 2 707,753 199,631 FE18-15 Plant Boiler System Relief at Plant No. 2 49,219 21,607 FE18-16 Truck Loading Basement Drain Modifications at Plant No. 1 119,493 19,983 FE18-19 12KV Distribution B and East RAS Pump Station Roofing Replacement 82,085 FE18-20 DAFT Air Compressors Replacement at Plant No. 1 543,146 428,211 126,230 FE19-01 Pump Station Portable Generator Connectors 1,470,229 362,585 328,050 FE19-02 Cengen Plant Water Pipe Replacement at Plant No. 1 197,983 2,850,342 550,351 FE19-03 Trickling Filter Sludge and Scum Pumps Replacement at Plant No. 1 593,722 921,145 1,170,277 FE19-04 Sunflower Pump Replacement at Plant No. 1 1,732,102 1,369,851 332,305 FE19-06 EPSA Motor Cooling Improvements at Plant No. 2 1,036,119 38,046 FE19-08 Secondary Treatment VFD Replacements at Plant No. 2 469,550 1,287,126 840,262 FE19-10 Digesters C, D, F, G and I Gas Balance Lines Replacement at Plant No. 2 1,754,988 163,823 156,706 FE19-11 Primary Clarifiers Nos. 6-31 Lighting and Alarm Improvements at Plant No. 1 12,079 17,940 80,918 FE19-12 Rebuild Shop Fume Extractor Installation at Plant No 1 399,458 36,383 FE19-13 VFD Replacements at Seal Beach Pump Station 208,296 65,577 FE20-01 Wastehauler Station Safety and Security Improvements 176,706 885,754 243,878 FE20-02 Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2 364,793 2,172,081 1,104,456 FE20-03 Return Activated Sludge Discharge Piping Replacement at Activated Sludge Plant No. 1 516630 3,151,866 855,593 FE20-04 Cengen Cooling Water Pipe Replacement at Plant No. 2 253:719 998,739 2,681,158 FE20-05 Plant Water Piping Replacement at Secondary Clarifiers 1-26 at Plant No.1 911,695 268,380 268,159 FE20-06 Thickening and Dewatering Building Pipe Support Improvements at Plant No. 1 870,461 309,245 FE20-07 Santa Ana Trunk Rehabilitation at Plant No. 1 597,011 50,672 FE20-08 Olive Sub -Trunk Siphon Rehabilitation at Santa Ana River 211911 2,266,894 162,102 FE20-09 CenGen Smoke Detection Improvements at Plant No. 1 and No. 2 117:904 405,360 64,964 FE20-10 Adolfo Lopez Chemical Dosing Station Installation 164,119 685,089 86,269 FE21-01 Plasma Cutting Fume Extractor installation at Plant No. 1 Rebuild Shop 222,842 36,915 FE21-02 Lighting Improvements Boiler and Sludge Dewatering Areas at Plant No.1 232,764 38,026 FE21-04 Thickening and Dewatering Facility Handrail Installation at Plant No. 1 145,722 37,444 3,036 FE21-05 Warehouse Stations and Demolition at Plant No. 2 291,508 1,652,322 219,191 FE21-06 Chemical Dosing Station Installation at Westside Pump Station 187,356 264,827 56,258 IT16-09 iPACS Enhancements 664 IT18-09 Records Management Information System IT19-01 IT Safety VPP Systems (IT19-01) 149,696 65,871 48,651 1,019,096 2,530 6,276 42,780 12,831 51,425 2,989,336 907,384 70,826 139,476 82,085 1,097,587 2,160,864 3,748,372 2,685,144 3,434,258 1,074,165 2,662,809 2,075,517 159,588 435,841 273,873 1,306,338 3,641,330 4,524,089 4,955,242 1,448,234 1,179,706 647,683 2,640,907 588,228 941,753 259,757 270,790 186,202 2,163,021 508,441 56,275 0 0 10/29/2022 2,)Drr4t57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 3 -Capital Plan Page 3 of 7 vrojecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i 01al IT19-05 IT PI & P2 Data Refresh (IT19-05) IT20-05 Client Management Modernization (ICE-69_IT20-05) 6520005 IT20-06 Nintex Workflow Cloud Implementation (ICE-75_IT20-06) 6520006 IT20-07 Professional Services for Valo/SharePoint (ICE-74_IT20-07) 6520007 IT20-08 Field Computer for Nerissa and Interface with LIMS(ICE-68_IT20-07) 6520008 IT20-09 ITSM Migration (ICE-70_IT20-09) 6520009 IT20-10 Digitize Quality Assurance Tracking Processes /TNI/ELAP StandardslCE-76_IT20-10)6520010 IT20-12 Web -based Cloud Proxy Security with an Isolation Platform (ICE- 78 6520012) IT21-01 Access Network Equipment Obsolescence Replacement (ICE-79_IT21- 01)6521001 IT21-02 Hyper Converged Infrastructure for Plant 1 ICS network (ICE-80 IT21- 02)6521002 IT21-03 Door Access Control System for P2 Construction Management Trailers (ICE-83_IT21-036521003 IT21-04 Databridge Scale Management Software (ICE - 84_IT21-04) IT21-051D Edwards Server Migration and Upgrade (ICE - 86_IT21-05) IT21-06 Dig -Smart Fusion (ICE -89_16521006_T21-06) IT21-07 Advanced Email Security (ICE - 90_16521007_T21-07) 1-117B Outfall Low Flow Pump Station 1-120 Process Control Systems Upgrades 1-120A Control Room Reconfiguration at Plant No. 1 and Plant No. 2 1-124 Digester Gas Facilities Replacement 1-127 Natural Gas Pipelines Replacement at Plant Nos. 1 and 2 1-128 Project Management Information System 1-133 Laboratory Rehabilitation/Replacement at Plant No 1 1-135 Central Generation Engine Overhauls at Plant No. 1 and 2 1-135A Central Generation Engine Overhaul at Plant No. 1 1-135B Engine and Generator Overhauls at Plant No. 1 and 2 1-136 Power Building Structural Seismic Improvements at Plant No. 1 and 2 1-137 120-inch Ocean Outfall Rehabilitation 1-36-2 GWRS Final Expansion Coordination 1-98 Electrical Power Distribution System Improvements M-FE Small Construction Projects Program M-MC-IT Information Technology Capital Program M-RESEARCH Research Program M-SM-CAP Operations & Maintenance Capital Program M-STUDIES Planning Studies Program P1-101 Sludge Dewatering and Odor Control at Plant 1 1,070,000 1,070,000 71,603 71,603 0 27,835 27,835 77,822 77,822 0 89,317 89,317 0 1,009,193 1,009,193 139,321 139,321 0 35,946 35,946 68,628 68,628 0 0 19,862,966 15,084,374 14,757,711 1,459,625 51,164,676 7,399,012 6,560,418 5,520,288 4,781,569 6,528,988 30,790,275 302,051 679,900 2,414,697 368,945 3,765,593 146,143 902,218 25,642,216 28,641,424 28,855,782 29,017,652 28,071,955 15,317,316 353,603 156,948,309 78,826 78,826 670,937 670,937 923,219 2,672,251 2,745,896 2,745,896 6,865,716 21,479,548 21,586,207 20,900,267 20,081,000 100,000,000 71,165 71,165 72,304 1,028,970 5,955,937 5,976,457 1,698,637 14,874,635 0 1,423,029 8,281,455 6,213,391 6,925,238 1,156,887 24,000,000 215,186 523,480 960,224 2,079,332 1,438,535 147,523 5,364,280 38,022 686,862 2,314,826 2,378,620 2,378,620 4,866,988 8,399,741 10,183,630 13,634,227 20,086,463 64,967,999 272,061 272,061 2,119,310 5,283,711 5,550,105 5,792,820 3,883,910 1,661,830 24,291,686 3,040,666 3,029,015 3,040,666 3,040,666 3,040,666 3,052,316 3,029,015 3,017,365 24,290,375 418,281 418,281 424,973 436,685 436,685 438,358 435,012 435,012 436,685 438,358 4,318,330 253,856 253,856 257,918 265,026 265,026 266,042 264,011 264,011 2,089,746 998,441 998,441 1,014,416 1,042, 372 1,042, 372 1,046, 366 1,038, 379 1,038, 379 1,042, 372 1,042, 372 10, 303, 910 1,803,657 1,803,659 1,832,517 1,883,020 1,883,020 1,890,235 1,875,805 1,875,805 14,847,718 0 10/29/2022 22 rraft57 OO San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 3 - Capital Plan Page 4 of 7 vrolecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i o[ai P1-105 Headworks Rehabilitation at Plant 1 P1-126 Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1 P1-127 Central Generation Rehabilitation at Plant No. 1 P1-128A Headquarters Complex at Plant No. 1 P1-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1 P1-132 Uninterruptable Power Supply Improvements at Plant 1 P1-133 Primary Sedimentation Basins No. 6-31 Reliability Improvements at Plant No. 1 P1-134 South Perimeter Security and Utility Improvements at Plant No.1 P1-135 Digester Ferric Chloride Piping Replacement at Plant No. 1 P1-136 12.47 kV Switchgear Replacement at Central Generation at Plant No. 1 P1-137 Supports Buildings Seismic Improvements at Plant No. 1 P1-138 Industrial Control System and IT Data Center Relocation at Plant No. 1 P1-140 Activated Sludge-1 and Secondary Clarifier Rehabilitation P1-141 Administrative Facilities and Power Building 3A Demolition P2-119 Central Generation Rehabilitation at Plant No. 2 P2-122 Headworks Modifications at Plant No. 2 for GWRS Final Expansion P2-123 Return Activated Sludge Piping Replacement at Plant 2 P2-124Interim Food Waste Receiving Facility P2-127 Collections Yard Relocation P2-128 TPAD Digester Facility at Plant No.2 P2-128ATPAD Perimeter Wall P2-129 Digester P, 0, R, and S Replacement P2-133 B/C-Side Primary Sedimentation Basins Rehabilitation at Plant No. 2 P2-135 Sodium Bisulfite Station Rehabilitation at Plant No. 2 P2-136 Activated Sludge Aeration Basin Rehabilitation at Plant No. 2 P2-137 Digesters Rehabilitation at Plant No. 2 P2-138 Operations and Maintenance Complex at Plant No. 2 P2-139 Emergency Overflow Wingwalls Rehabilitation at Plant No. 2 P2-140 Truck Loading Bay Odor Control Improvements at Plant No. 2 P2-98A A -Side Primary Clarifiers Replacement at Plant 2 P2-988 B/C-Side Primary Clarifiers Interim Repair at Plant 2 PS17-03 Active Fault Location Study at Plant No. 2 PS18-06 Go/No-Go Lights and Signage PS18-09 Ocean Outfall Condition Assessment and Scoping Study PS19-03 Laboratory Rehabilitation Feasibility Study 34,978,473 77,053,946 38,199,385 35,716,381 25,793,517 20,396,147 28,689,509 260,827,358 2,729,469 3,209,282 5,426,802 5,778,971 4,657,459 17,353,718 50,373,386 50,307,339 17,573,189 11,218,474 168,628,089 316,114 1,555,021 1,664,845 6,645,842 11,702,420 21,884,242 61,197,824 20,767,264 3,160,783 85,125,871 0 1,931,268 3,016,195 658,489 5,605,952 2,629,590 5,359,565 2,164,631 1,325,470 11,479,256 3,738,937 395,278 4,134,215 89,718 125,953 215,671 116,610 620,407 917,016 1,725,909 2,718,663 2,718,663 2,729,119 1,411,613 12,958,000 769,029 1,604,316 2,392,194 4,936,630 4,968,870 4,872,965 2,840,724 1,258,507 23,643,235 219,007 348,263 1,118,009 2,696,326 911,655 406,741 5,700,001 1,096,587 3,480,928 5,021,352 6,081,208 8,740,959 23,171,695 46,932,491 69,684,749 52,561,716 44,380,768 261,152,453 62,055 202,542 541,015 3,213,458 3,270,930 1,620,000 8,910,000 83,594 1,488,701 2,814,117 2,814,117 14,471,620 15,018,247 36,690,396 4,930,161 965,602 5,895,763 1,233,062 97,580 1,330,642 10,140 16,899 2,741,215 2,009,722 170,558 4,948,534 168,067 1,296,029 378,996 1,843,092 10,444,998 9,502,649 12,986,772 27,365,504 57,515,733 63,336,895 62,705,249 62,290,170 43,092,505 27,041,661 376,282,136 10,598,838 21,393,098 19,071,238 2,136,826 53,200,000 297,610 1,811,097 2,716,091 2,695,357 2,695,357 22,754,201 26,430,316 59,400,029 330,662 3,219,097 6,133,298 6,156,797 15,839,854 167,537 431,386 581,128 2,752,130 738,913 288,713 4,959,807 297,355 2,392,285 1,704,046 3,010,558 14,536,946 23,615,192 7,773,508 12,208,734 65,538,624 1,843,646 1,486,783 8,989,585 11,258,867 10,731,550 6,063,725 40,374,156 832,402 2,370,340 2,560,121 2,589,540 8,651,512 23,309,476 22,722,610 9,631,772 11,131,169 83,798,942 117,241 224,545 234,118 1,523,041 2,271,054 4,369,999 95,012 287,368 372,342 416,596 2,706,318 2,522,364 1,200,000 7,600,000 30,540,734 35,935,487 29,809,992 16,726,884 15,237,784 5,515,434 133,766,315 0 0 99,262 99,262 55,300 55,300 12,593 12,593 10/29/2022 23 oaft- OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 3 - Capital Plan Page 5 of 7 vrotecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i 01ai PS20-01 Collections Yard Relocation Feasibility Study 69,513 69,513 PS20-02 Collection System Flow Level Monitoring Study 197,168 302,937 113,391 6,751 620,247 PS20-03 Truck Loading Bay Odor Control Improvements Study at Plant No. 2 160,469 160,469 PS20-04 Power Generation Overhaul Feasibility Study 0 PS20-05 Cen Gen Pressure Vessel Integrity Assessment at Plant Nos. land 2 233,863 233,863 PS20-07 College Pump Station Wet Well Condition Assessment Study 67,425 67,425 PS20-08 Euclid Trunk Sewer Hydraulic Modeling and Odor Control Analyses 205,952 205,952 PS20-09 Thickening & Dewatering Plant Water Study at Plant No. 1 258,320 70,192 328,512 PS21-01 Exterior Lighting Study at Plant Nos. 1 and 2 301,867 221,877 523,744 PS21-02 Public Announcement and Fire System at Plant Nos. 1 and 2 307,605 151,009 458,614 PS21-03 Process Model for Denitrification Alternatives at Activated Sludge 1 9,698 9,698 PS21-04 Energy and Digester Gas Master Plan 782,721 285,741 1,068,462 PS21-05 CAD Design Manual Update for 3D Design 468,372 210,392 678,764 PS21-06 Regional Urban Runoff Optimization Study 117,587 673,604 177,140 968,331 RE19-01 Primary Scum Equipment Evaluation at Plant No. 1 15,405 15,405 RE20-01 Co -Thickened Sludge Density Meter Trial atl Plant No. 1 1,931 1,931 RE20-02 Chemical Resilience Study at Plant No.l and 2 22,396 22,396 RE20-04 Holding Digester 6 Solids Shredder Study at Plant No. 1 17,649 17,649 RE20-06 Co -Thickened Sludge Pump Trial at Plant No. 1 15,000 15,000 RE21-01 Supercritical Water Oxidation Demonstration at Plant No. 1 5,690,537 1,182,571 6,873,108 SC18-05 Pl Laboratory HVAC Boiler Burner Replacement At Plant No.l 0 SC19-03 Return Activated Sludge Pump Station Elevator Rehabilitation at Plant No. 2 189,949 173,044 362,993 SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2 141,326 440,448 2,007,955 474,025 364,093 3,427,847 SC20-02 Ocean Outfall Booster Station Elevator Rehabilitation 299,953 77,076 4,790 381,819 SP-100 EAM Software and Process Implementation 383,372 383,372 389,506 1,388,238 2,544,488 SP-195 Capital Improvement Program Management Services 324,865 324,865 X-006 Waste Si estream Pump Station Rehabilitation at Plant No. 1 1,010,181 1,877,528 11,669,291 2,730,000 17,287,000 X-007 Waste Sidestream Pump Station 2A Upgrade at Plant No. 2 202,213 479,790 522,463 3,328,711 3,626,823 1,530,000 9,690,000 X-014 Trickling Filter Solids Contact Basins Odor Control at Plant No. 2 117,817 117,817 X-015 Trickling Filters Rehabilitation at Plant No. 1 326,129 1,311,545 4,179,121 5,816,795 X-017 Primary Sedimentation Basins No. 6-31 Rehabilitation at Plant No. 1 0 X-018 Activated Sludge - 2 Rehabilitation at Plant No. 1 0 X-022 15th Street Pump Station and Force Main Rehabilitation 0 X-023 Lido Pump Station Rehabilitation 228,325 557,934 557,934 795,655 7,707,443 9,847,291 X-024 Rocky Point Pump Station Rehabilitation 82,553 82,553 10/29/2022 24Drraft57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 3 -Capital Plan Page 6 of 7 vrolecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i 01ai X-025 Bitter Point Pump Station Rehabilitation X-030 Headworks Rehabilitation at Plant 2 X-031 Trickling Filter Solids Contact Facility Rehabilitation at Plant No. 2 X-036 City Water Pump Station Rehabilitation at Plant No. 2 X-037 Plant Water Pump Station and 12 KV Distribution Center A Demolition at Plant No. 2 X-038 City Water Pump Station Rehabilitation at Plant No. 1 X-039 Plant Water Pump Station Rehabilitation at Plant No. 1 X-040 College Pump Station Replacement and Force Main Rehabilitation X-041 A Street Pump Station and Force Main Rehabilitation X-044 Steve Anderson Lift Station Rehabilitation X-052 Activated Sludge RAS/WAS/PEPS/Vaporizers Rehabilitation at Plant No. 2 X-059 Plantwide Miscellaneous Tunnels Rehabilitation X-061 Imperial Relief Interceptor/ Miller Holder Trunk Rehabilitation X-065 Tustin -Orange Interceptor Rehabilitation X-066 Tustin -Orange Interceptor/ Orange Park Acres Trunk Rehabilitation X-068 North Trunk - Panorama Heights -Tustin-Orange Rehabilitation X-071 Bolsa Chica / Edinger/ Springdale Trunk Sewer Rehabilitation X-078 AirJumpers Additions/Rehabilitations X-084 Tustin Avenue Sewer Improvements X-085 Hoover -Western Sub -Trunk and Lampson Branch Improvements X-086 Santa Ana River Interceptor Improvements X-095 Southern California Edison Substation and Service Center Replacement at Plant 2 X-096 Bushard Diversion Structure Improvements X-098 Effluent Pump Station Annex Rehabilitation X-100 Flood Wall along Brookhurst Street X-102 Wastehauler Facility Improvements X-104 Central Generation Facilities and Power Bldg. 2 Seismic Upgrades X-105 OOBS Seismic Improvements at Plant No. 2 X-107 DAFTs Seismic Improvements at Plant No. 2 X-108 Lateral Spreading Mitigation at Plant No. 2 X-109 Lateral Spreading Mitigation at Plant No. 1 X-110 Solids Processing Facilities Seismic Improvements at Plant No. 1 X-112 Southwest Corner Stormwater Drainage Modifications at Plant No. 1 X-114 Activated Sludge Facility Replacement at Plant No. 2 X-115 Short Outfall Rehabilitation at Plant No. 2 365,469 365,469 898,266 4,377,482 5,275,748 0 403,977 702,489 697,126 1,848,279 5,662,081 4,126,047 13,439,999 55,825 193,680 228,430 764,786 1,590,796 675,483 3,509,000 63,354 330,948 472,981 472,981 2,094,588 3,856,884 7,291,736 455,209 690,935 771,202 5,666,957 2,976,696 10,560,999 48,532 303,036 535,298 537,349 1,424,215 0 0 187,007 1,352,431 2,053,294 2,037,620 5,283,956 11,388,788 11,432,424 33,735,520 18,047 214,102 660,967 889,501 889,501 10,334,552 16,344,044 29,350,714 0 0 110,431 265,180 279,392 280,462 935,465 60,432 267,526 383,911 385,382 1,403,775 3,317,707 2,155,267 1,650,000 9,624,000 256,263 587,505 590,399 592,661 2,393,659 4,699,126 4,655,664 3,197,723 16,973,000 63,413 541,957 1,110,332 1,164,330 10,935,620 13,815,652 16,791 54,833 70,082 70,350 212,056 140,679 792,474 1,050,816 3,427,407 9,199,982 9,235,231 23,846,589 0 459,116 1,383,695 1,695,230 1,903,759 5,441,800 111,185 269,484 271,572 1,560,959 1,626,852 803,535 78,412 4,721,999 105,558 909,288 1,732,098 1,738,734 4,485,678 489,621 1,743,266 1,754,664 1,761,386 5,748,937 12,600 70,594 85,657 1,135,511 1,304,362 291,087 953,319 1,025,700 1,152,150 6,663,256 6,663,256 6,335,233 5,130,000 28,214,001 257,186 841,445 905,302 1,093,830 8,825,891 8,459,345 4,530,000 24,912,999 389,911 389,911 0 0 34,832 141,349 240,022 240,941 657,144 27,873 93,658 99,521 634,779 855,831 0 125,076 919,360 1,550,002 1,555,963 1,561,925 5,712,326 10/29/2022 255 Draft57 OO San Orange County Sanitation District Page 7 of 7 Cost of Service Rate Study Revenue Requirement Exhibit 3 - Capital Plan Project and Name FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Total X-116 Outfall Land Section Rehabilitation at Plant No. 2 0 X-118 84-inch Interplant Pipeline Rehabilitation at Plant 1 0 X-119 Thickening, Dewatering and Truck Loadout Rehabilitation at Plant 1 0 X-120 Digester Rehabiliation/Replacement at Plant 1 0 X-121 Lido Pump Station Replacement 0 X-122 MacArthur Pump Station Replacement Project 0 X-124 Electric Vehicle Fleet Services Building 242,986 511,167 534,362 530,283 2,826,877 5,197,000 2,638,324 12,480,999 X-125 66-inch Interplant Pipeline Rehabilitation at Plant 1 83,905 359,560 514,587 4,793,650 449,916 639,382 6,841,000 X-126 Lake Ave and Atlanta Int Rehabilitation 24,772 339,881 564,047 564,047 4,943,684 2,522,570 8,959,001 X2-72 Continegncy Reserve for 2-72 10,000,000 10,000,000 X2-79 Fullerton -Brea Int and Rollings Hills or Subtrunk Rehabilitation 282,781 587,581 596,101 1,756,180 4,177,468 3,799,889 1,856,017 243,983 13,300,000 XP2-130 Food Waste Receiving Facility at Plant No. 2 0 XP2-131 Digester I,1, and K Replacement at Plant No. 2 277,729 1,196,447 2,179,777 2,188,160 2,937,725 8,779,838 XP2-132 Digester Demolition at Plant No. 2 0 Actual 203,320,511 203,320,511 0 Total 1$203,320,511 $284,617,363 $339,320,433 $314,119,320 $327,669,835 $341,596,649 $340,375,184 $394,464,743 $372,701,187 $344,553,245 $354,767,515 $3,617,505,985 Capital Projects $0 $284,617,363 $329,320,433 $311,961,390 $321,793,493 $322,826,459 $324,753,539 $353,913,646 $308,176,430 $251,753,302 $249,061,975 $3,058,178,030 Renewal and Replacement Projects 203,320,511 0 10,000,000 2,157,930 5,876,342 18,770,190 15,621,645 40,551,097 64,524,757 92,799,943 105,705,540 559,327,955 $203,320,511 $284,617,363 $339,320,433 $314,119,320 $327,669,835 $341,596,649 $340,375,184 $394,464,743 $372,701,187 $344,553,245 $354,767,515 $3,617,505,985 10/29/2022 26Drraft57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 4 - Existing Debt Page 1 of 4 Total Principal and Interest 2010A Build 2010C Build 2011A 2012A 2012E 2014A 2015A 2016A 2017A 2018A 2021A 2022A America America Refunding Refunding Refunding Refunding Refunding Refunding Fiscal Year Bonds Bonds of (Partial (Partial (Remain (Partial 2011A (2012A and Total Interest Acq./Const. Acq./Const. (Partial 2009A) Payments 20076) 20076) 2007A) and 2018A) Partial 2012B) per Fiscal Year FY 2021-22 $2,984,334 $6,724,010 $2,019,050 $3,735,900 $8,446,150 $11,049,000 $6,375,500 $11,389,800 $3,290,750 $2,356,278 $8,844,836 $0 $67,215,608 FY 2022-23 2,986,574 6,724,010 0 0 0 11,046,750 6,375,500 11,391,550 3,290,750 0 22,672,000 4,081,000 68,568,134 FY 2023-24 2,986,574 6,724,010 0 0 0 11,044,000 6,375,500 11,396,050 3,290,750 0 22,713,500 4,081,000 68,611,384 FY 2024-25 2,986,574 6,724,010 0 0 0 11,049,750 6,375,500 11,392,550 3,290,750 0 22,672,250 4,081,000 68,572,384 FY 2025-26 2,986,574 6,724,010 0 0 0 11,052,500 6,375,500 11,390,800 3,290,750 0 22,725,250 4,081,000 68,626,384 FY 2026-27 2,986,574 6,724,010 0 0 0 11,051,250 6,375,500 11,390,050 18,405,750 0 7,485,750 4,081,000 68,499,884 FY 2027-28 2,986,574 6,724,010 0 0 0 0 21,615,500 11,394,550 18,365,000 0 7,486,000 4,081,000 72,652,634 FY 2028-29 2,986,574 6,724,010 0 0 0 0 21,658,500 11,388,300 18,323,500 0 7,489,750 4,081,000 72,651,634 FY 2029-30 2,986,574 6,724,010 0 0 0 0 20,776,250 11,391,050 19,204,500 0 7,486,250 4,081,000 72,649,634 FY 2030-31 2,986,574 12,459,010 0 0 0 0 10,228,000 11,411,550 0 0 7,490,250 26,566,000 71,141,384 FY 2031-32 2,986,574 23,382,068 0 0 0 0 3,702,250 11,413,050 0 0 7,485,750 25,761,750 74,731,442 FY 2032-33 2,986,574 23,476,472 0 0 0 0 3,702,250 11,415,550 0 0 7,487,500 38,146,500 87,214,846 FY 2033-34 12,576,574 13,967,040 0 0 0 0 20,882,250 11,408,050 0 0 7,489,500 0 66,323,414 FY2034-35 12,696,056 13,897,232 0 0 0 0 20,883,250 11,415,050 0 0 7,486,000 0 66,377,588 FY 2035-36 12,919,416 13,834,528 0 0 0 0 20,881,250 11,409,800 0 0 7,486,500 0 66,531,494 FY2036-37 13,151,453 13,758,096 0 0 0 0 20,879,250 11,411,800 0 0 0 0 59,200,599 FY 2037-38 13,399,607 13,667,936 0 0 0 0 0 11,411,000 0 0 0 0 38,478,543 FY2038-39 13,658,823 13,574,048 0 0 0 0 0 11,414,000 0 0 0 0 38,646,871 FY 2039-40 13,937,832 13,481,016 0 0 0 0 0 0 0 0 0 0 27,418,848 FY 2040-41 0 22,698,216 0 0 0 0 0 0 0 0 0 0 22,698,216 FY 2041-42 0 13,457,728 0 0 0 0 0 0 0 0 0 0 13,457,728 FY 2042-43 0 10,305,640 0 0 0 0 0 0 0 0 0 0 10,305,640 FY 2043-44 0 2,583,168 0 0 0 0 0 0 0 0 0 0 2,583,168 Totals $128,176,409 $265,058,288 $2,019,050 $3,735,900 $8,446,150 $66,293,250 $203,461,750 $205,234,550 $90,752,500 $2,356,278 $174,501,086 $123,122,250 1 $1,273,157,461 10/29/2022 Draft OC San 27 of 57 Orange County Sanitation District Page 2 of 4 Cost of Service Rate Study Revenue Requirement Exhibit 4 - Existing Debt Interest 2010A Build 2010C Build 2011A 2012A 2012E 2014A 2015A 2016A 2017A 2018A 2021A 2022A America America Refunding Refunding Refunding Refunding Refunding Refunding Fiscal Year Bonds Bonds of (Partial (Partial (Remain (Partial 2011A (2012A and Total Interest Payments Acq./Const. Acq./Const. 2007B) 2007B) (Partial 2009A) 2007A) and 2018A) Partial 2012B) per Fiscal Year FY 2021-22 $2,984,334 $6,724,010 $2,019,050 $3,735,900 $276,150 $2,804,000 $6,375,500 $6,524,800 $3,290,750 $2,356,278 $3,374,836 $0 $40,465,608 FY2022-23 2,986,574 6,724,010 2,391,750 6,375,500 6,281,550 3,290,750 6,402,000 4,081,000 38,533,134 FY 2023-24 2,986,574 6,724,010 1,959,000 6,375,500 6,026,050 3,290,750 5,588,500 4,081,000 37,031,384 FY 2024-25 2,986,574 6,724,010 1,504,750 6,375,500 5,757,550 3,290,750 4,732,250 4,081,000 35,452,384 FY 2025-26 2,986,574 6,724,010 1,027,500 6,375,500 5,475,800 3,290,750 3,835,250 4,081,000 33,796,384 FY 2026-27 2,986,574 6,724,010 526,250 6,375,500 5,180,050 3,290,750 2,890,750 4,081,000 32,054,884 FY2027-28 2,986,574 6,724,010 0 6,375,500 4,869,550 2,535,000 2,661,000 4,081,000 30,232,634 FY2028-29 2,986,574 6,724,010 0 5,613,500 4,543,300 1,743,500 2,419,750 4,081,000 28,111,634 FY2029-30 2,986,574 6,724,010 0 4,811,250 4,201,050 914,500 2,166,250 4,081,000 25,884,634 FY 2030-31 2,986,574 6,724,010 0 4,013,000 3,841,550 0 1,900,250 4,081,000 23,546,384 FY 2031-32 2,986,574 6,287,068 0 3,702,250 3,463,050 0 1,620,750 2,956,750 21,016,442 FY2032-33 2,986,574 5,581,472 0 3,702,250 3,065,550 0 1,327,500 1,816,500 18,479,846 FY 2033-34 2,986,574 4,837,040 0 3,702,250 2,648,050 0 1,019,500 0 15,193,414 FY2034-35 2,551,056 4,457,232 0 2,843,250 2,210,050 0 696,000 0 12,757,588 FY2035-36 2,184,416 4,064,528 0 1,941,250 1,749,800 0 356,500 0 10,296,494 FY2036-37 1,796,453 3,658,096 0 994,250 1,266,800 0 0 0 7,715,599 FY2037-38 1,384,607 3,237,936 0 0 861,000 0 0 0 5,483,543 FY2038-39 948,823 2,804,048 0 0 439,000 0 0 0 4,191,871 FY 2039-40 487,832 2,356,016 0 0 0 0 0 0 2,843,848 FY 2040-41 0 1,893,216 0 0 0 0 0 0 1,893,216 FY 2041-42 0 1,027,728 0 0 0 0 0 0 1,027,728 FY 2042-43 0 510,640 0 0 0 0 0 0 510,640 FY 2043-44 0 103,168 0 0 0 0 0 0 103,168 Totals $48,176,409 $108,058,288 $2,019,050 $3,735,900 $276,150 $10,213,250 $75,951,750 $68,404,550 $24,937,500 $2,356,278 $40,991,086 $41,502,250 1 $426,622,461 10/29/2022 Draft OC San 28 of 57 Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 4 - Existing Debt Principal Page 3 of 4 2010A Build 2010C Build 2011A 2012A 2012E 2014A 2015A 2016A 2017A 2018A 2021A 2022A America America Refunding Refunding Refunding Refunding Refunding Refunding Fiscal Year Bonds Bonds of (Partial (Partial (Remain (Partial 2011A (2012A and Total Interest Acq./Const. Acq./Const. (Partial 2009A) Payments 20076) 20076) 2007A) and 2018A) Partial 2012B) per Fiscal Year FY 2021-22 $0 $0 $8,170,000 $8,245,000 $0 $4,865,000 $0 $5,470,000 $0 $26,750,000 FY 2022-23 0 0 8,655,000 0 5,110,000 0 16,270,000 0 $30,035,000 FY 2023-24 0 0 9,085,000 0 5,370,000 0 17,125,000 0 31,580,000 FY 2024-25 0 0 9,545,000 0 5,635,000 0 17,940,000 0 33,120,000 FY 2025-26 0 0 10,025,000 0 5,915,000 0 18,890,000 0 34,830,000 FY 2026-27 0 0 10,525,000 0 6,210,000 15,115,000 4,595,000 0 36,445,000 FY 2027-28 0 0 0 15,240,000 6,525,000 15,830,000 4,825,000 0 42,420,000 FY 2028-29 0 0 0 16,045,000 6,845,000 16,580,000 5,070,000 0 44,540,000 FY 2029-30 0 0 0 15,965,000 7,190,000 18,290,000 5,320,000 0 46,765,000 FY 2030-31 0 5,735,000 0 6,215,000 7,570,000 0 5,590,000 22,485,000 47,595,000 FY 2031-32 0 17,095,000 0 0 7,950,000 0 5,865,000 22,805,000 53,715,000 FY2032-33 0 17,895,000 0 0 8,350,000 0 6,160,000 36,330,000 68,735,000 FY 2033-34 9,590,000 9,130,000 0 17,180,000 8,760,000 0 6,470,000 0 51,130,000 FY2034-35 10,145,000 9,440,000 0 18,040,000 9,205,000 0 6,790,000 0 53,620,000 FY 2035-36 10,735,000 9,770,000 0 18,940,000 9,660,000 0 7,130,000 0 56,235,000 FY2036-37 11,355,000 10,100,000 0 19,885,000 10,145,000 0 0 0 51,485,000 FY 2037-38 12,015,000 10,430,000 0 0 10,550,000 0 0 0 32,995,000 FY 2038-39 12,710,000 10,770,000 0 0 10,975,000 0 0 0 34,455,000 FY 2039-40 13,450,000 11,125,000 0 0 0 0 0 0 24,575,000 FY 2040-41 0 20,805,000 0 0 0 0 0 0 20,805,000 FY 2041-42 0 12,430,000 0 0 0 0 0 0 12,430,000 FY 2042-43 0 9,795,000 0 0 0 0 0 0 9,795,000 FY 2043-44 0 2,480,000 0 0 0 0 0 0 2,480,000 Totals $80,000,000 $157,000,000 $56,080,000 $127,510,000 $136,830,000 $65,815,000 $133,510,000 $81,620,000 $846,535,000 10/29/2022 Draft OC San 29 of 57 Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 4 - Existing Debt Page 4 of 4 Principal Balance 2010A Build 2010C Build 2011A 2012A 2012E 2014A 2015A 2016A 2017A 2018A 2021A 2022A America America Refunding Refunding Refunding Refunding Refunding Refunding Fiscal Year Bonds Bonds of (Partial (Partial (Remain (Partial 2011A (2012A and Total Interest Payments Acq./Const. Acq./Const. 2007B) 2007B) (Partial 2009A) 2007A) and 2018A) Partial 2012B) per Fiscal Year FY2021-22 80,000,000 157,000,000 0 0 8,170,000 56,080,000 127,510,000 136,830,000 65,815,000 0 133,510,000 81,620,000 846,535,000 FY 2022-23 80,000,000 157,000,000 0 0 0 47,835,000 127,510,000 131,965,000 65,815,000 0 128,040,000 81,620,000 819,785,000 FY 2023-24 80,000,000 157,000,000 0 0 0 39,180,000 127,510,000 126,855,000 65,815,000 0 111,770,000 81,620,000 789,750,000 FY 2024-25 80,000,000 157,000,000 0 0 0 30,095,000 127,510,000 121,485,000 65,815,000 0 94,645,000 81,620,000 758,170,000 FY 2025-26 80,000,000 157,000,000 0 0 0 20,550,000 127,510,000 115,850,000 65,815,000 0 76,705,000 81,620,000 725,050,000 FY 2026-27 80,000,000 157,000,000 0 0 0 10,525,000 127,510,000 109,935,000 65,815,000 0 57,815,000 81,620,000 690,220,000 FY 2027-28 80,000,000 157,000,000 0 0 0 0 127,510,000 103,725,000 50,700,000 0 53,220,000 81,620,000 653,775,000 FY 2028-29 80,000,000 157,000,000 0 0 0 0 112,270,000 97,200,000 34,870,000 0 48,395,000 81,620,000 611,355,000 FY 2029-30 80,000,000 157,000,000 0 0 0 0 96,225,000 90,355,000 18,290,000 0 43,325,000 81,620,000 566,815,000 FY 2030-31 80,000,000 157,000,000 0 0 0 0 80,260,000 83,165,000 0 0 38,005,000 81,620,000 520,050,000 FY 2031-32 80,000,000 151,265,000 0 0 0 0 74,045,000 75,595,000 0 0 32,415,000 59,135,000 472,455,000 FY 2032-33 80,000,000 134,170,000 0 0 0 0 74,045,000 67,645,000 0 0 26,550,000 36,330,000 418,740,000 FY 2033-34 80,000,000 116,275,000 0 0 0 0 74,045,000 59,295,000 0 0 20,390,000 0 350,005,000 FY 2034-35 70,410,000 107,145,000 0 0 0 0 56,865,000 50,535,000 0 0 13,920,000 0 298,875,000 FY 2035-36 60,265,000 97,705,000 0 0 0 0 38,825,000 41,330,000 0 0 7,130,000 0 245,255,000 FY 2036-37 49,530,000 87,935,000 0 0 0 0 19,885,000 31,670,000 0 0 0 0 189,020,000 FY 2037-38 38,175,000 77,835,000 0 0 0 0 0 21,525,000 0 0 0 0 137,535,000 FY 2038-39 26,160,000 67,405,000 0 0 0 0 0 10,975,000 0 0 0 0 104,540,000 FY 2039-40 13,450,000 56,635,000 0 0 0 0 0 0 0 0 0 0 70,085,000 FY 2040-41 0 45,510,000 0 0 0 0 0 0 0 0 0 0 45,510,000 FY 2041-42 0 24,705,000 0 0 0 0 0 0 0 0 0 0 24,705,000 FY 2042-43 0 12,275,000 0 0 0 0 0 0 0 0 0 0 12,275,000 FY 2043-44 0 2,480,000 0 0 0 0 0 0 0 0 0 0 2,480,000 10/29/2022 Draft OC San 30 of 57 Orange County Sanitation District Page 1 of 4 Cost of Service Rate Study Revenue Requirement Exhibit 5 - EDU Definitions factor per sgft Concentrations Ibs/Year APNs (Parcels) EDUs % Rate Revenue BOD, mgl SS, mgl Flow, gpd BOD I TSS Gal per Year 000-CONVERSION-C/I, RURAL PC LIEN DATE 12 9 100.00% 3,144 238 327 175 1,163 1,598 585,479 001- VACANT LAND PARCEL 6,275 0 0.00% 0 0 0 0 0 0 0 002-ONE RESIDENCE 451,281 451,297 100.00% 154,794,891 238 327 175 57,255,572.55 78,666,270 28,826,599,599 003 - TWO OR MORE RESIDENCES 8,615 13,257 70.00% 4,547,185 238 327 122 1,172,534.35 1,611,003 590,338,663 004- MISCELLANEOUS IMPROVEMENTSONLY 1,508 239 100.00% 82,088 238 327 122 21,167.28 29,083 10,657,142 005 - COMMON AREA PARCEL 865 0 0.00% 0 0 0 0 - 0 0 006 - "HOLD" PARCEL 254 0 0.00% 0 0 0 0 - 0 0 007-MOBILEHOME 19,552 126 50.00% 43,218 238 327 88 8,038.42 11,044 4,047,120 008 - EQUIVALENT TO VACANT 91 0 0.00% 0 0 0 0 - 0 0 010-DUPLEX ONLY 5,851 8,219 70.00% 2,819,117 238 327 122 726,935.74 998,773 365,992,070 011-TRIPLEX ONLY 2,333 4,881 70.00% 1,674,269 238 327 122 431,725.89 593,170 217,362,063 012-04-UNITS ONLY 6,987 19,502 70.00% 6,689,203 238 327 122 1,724,873.73 2,369,890 868,426,287 013-APARTMENTS ONLY 4,436 26,317 70.00% 9,026,794 238 327 122 2,327,643.40 3,198,065 1,171,904,171 014- 17-25 UNITS ONLY 604 8,664 70.00% 2,971,786 238 327 122 766,302.95 1,052,862 385,812,373 015 - 26-40 UNITS ONLY 386 8,632 70.00% 2,960,776 238 327 122 763,463.84 1,048,961 384,382,960 016 - 41-99 UNITS ONLY 628 26,889 70.00% 9,222,824 238 327 122 2,378,191.63 3,267,515 1,197,353,811 017 - 100 OR MORE UNITS 502 63,024 70.00% 21,617,232 238 327 122 5,574,205.88 7,658,678 2,806,458,720 018 - DEVELOPED WITH A MIX OF FORM TYPES 647 5,080 70.00% 1,742,457 238 327 122 449,308.85 617,328 226,214,597 019 -SF WITH 1 OR 2 RENTAL UNITS 50 95 85.00% 32,465 238 327 122 8,371.39 11,502 4,214,765 020-AMUSEMENT PARKS 35 5,345 144.00% 1,833,229 247 358 239 961,075.71 1,392,976 466,244,004 021-AUTOMOBILE DEALERSHIP 187 1,467 41.00% 503,054 248 366 68 75,339.21 111,186 36,401,725 022-AUTO REPAIR SHOP 594 1,245 41.00% 427,114 248 366 68 63,966.19 94,402 30,906,614 023 - AUTOMOTIVE SERVICE 442 1,074 41.00% 368,514 248 366 68 55,190.03 81,450 26,666,227 024 - USED CAR LOT 130 130 41.00% 44,555 248 366 68 6,672.66 9,848 3,224,034 026-AIRPORT AND RELATED BUILDINGS 145 456 53.00% 156,358 265 314 97 35,693.01 42,293 16,139,495 028 - BOWLING ALLEYS 7 227 112.00% 77,750 676 582 103 48,076.09 41,391 8,521,873 029 - CONVENTIONAL CAR WASH 76 1,054 796.00% 361,617 20 199 2712 174,186.76 1,733,158 1,043,608,868 030 - COIN OPERATED CAR WASH 54 162 151.00% 55,414 20 199 479 4,714.46 46,909 28,245,853 032-CEMETERY AND RELATED BUILDINGS 63 205 101.00% 70,343 766 1063 68 32,539.05 45,155 5,090,128 033-CHURCH BUILDINGS 835 2,816 20.00% 965,915 242 349 35 72,655.49 104,780 35,975,403 034-DORMITORY 16 617 97.00% 211,702 254 328 173 82,613.63 106,682 38,973,608 035 - ENTERTAINMENT CENTER 23 474 144.00% 162,668 247 358 239 85,278.99 123,603 41,371,163 10/29/2022 3 Drraft� OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 5 - EDU Definitions 036- FINANCIAL BUILDINGS 037- FRATERNAL BUILDINGS 038- FUNERAL HOME 039 - GOLF COURSE 040 - HEALTH CLUB 042 - HOSPITAL 043 - HIGH DEMAND HOTEL/MOTEL 044- LUMBER/CONST. MATERIALSYARD 045 - MARINAS 047 - SUPERMARKET 048 -CONVENIENCE MARKET 050 - SINGLE MEDICAL BLDGS TO 3 STORIES 051- SMALL MEDICAL CENTER 052 - MEDICAL CENTER COMPLEX 053 - HIGH RISE MEDICAL 054 - CONVERTED RESIDENCE TO IVIED OFFICE 055-MOBILEHOME PARK 056- LOW DEMAND HOTEL/MOTEL 057 - MOTORCYCLE/SMALL VEHICLEBLDGS 058 - NURSERIES 060 - NURSING HOME 061- CONVALESCENT HOSPITALS 062 -CONVERTED RES USED ASNURSING HOME 063 - LOW RISE RETIREMENT BUILDING(S) 064- HIGH RISE RETIREMENT BUILDING(S) 065 - SINGLE OFFICE BLDGS TO 3STORIES 066 - SMALL OFFICE CENTER 067-OFFICE COMPLEX 068 - HIGH RISE OFFICE 069 - CONVERTED RESIDENCE TOOFFICE 071 - PARKING GARAGE 072 - PAVED PARKING LOT 073 - RECREATION Page 2 of 4 factor per sgft APNs (Parcels) EDUs % Rate Revenue Concentrations BOD, mgl SS, mgl Flow, gpd Ibs/Year BOD I TSS Gal per Year 237 564 27.00% 193,396 248 366 68 28,963.76 42,745 13,994,453 73 368 51.00% 126,342 249 349 86 24,026.53 33,676 11,562,304 16 119 101.00% 40,937 766 1063 68 18,936.48 26,279 2,962,260 234 349 41.00% 119,620 248 366 68 17,914.68 26,439 8,655,857 51 306 29.00% 104,913 174 273 59 9,564.78 15,007 6,586,859 45 3,826 97.00% 1,312,215 238 327 175 485,362.37 666,863 244,366,550 77 8,305 97.00% 2,848,710 174 273 195 858,377.20 1,346,764 591,128,009 29 54 17.00% 18,677 238 327 31 1,223.74 1,681 616,118 101 34 53.00% 11,586 265 314 97 2,644.79 3,134 1,195,908 116 4,467 151.00% 1,532,293 768 1057 103 1,076,431.78 1,481,495 167,949,185 140 581 151.00% 199,444 248 366 68 29,869.49 44,082 14,432,075 961 5,504 124.00% 1,888,028 248 360 205 852,432.61 1,237,402 411,870,781 28 429 124.00% 147,155 248 360 205 66,439.64 96,445 32,101,714 29 1,413 124.00% 484,707 248 360 205 218,842.34 317,674 105,738,288 58 2,284 124.00% 783,384 248 360 205 353,693.12 513,426 170,894,288 32 72 124.00% 24,589 248 360 205 11,101.79 16,116 5,364,065 328 12,200 50.00% 4,184,429 254 328 90 849,490.47 1,096,980 400,753,575 354 12,184 70.00% 4,179,073 174 273 195 1,259,244.30 1,975,711 867,188,194 11 23 41.00% 7,954 248 366 68 1,191.23 1,758 575,567 31 26 10.00% 8,918 256 390 16 324.39 494 151,840 48 1,488 102.00% 510,434 249 355 179 202,040.15 288,049 97,227,909 65 1,916 102.00% 657,289 249 355 171 248,540.95 354,346 119,605,519 19 81 102.00% 27,658 249 355 179 10,947.68 15,608 5,268,359 41 1,544 70.00% 529,610 174 273 195 159,582.88 250,380 109,897,970 29 766 70.00% 262,681 174 273 195 79,151.30 124,186 54,508,149 3,507 16,473 41.00% 5,650,085 248 357 69 858,621.71 1,236,000 414,861,175 152 1,522 41.00% 522,199 248 357 69 79,356.59 114,235 38,342,807 70 937 41.00% 321,378 248 357 69 48,838.55 70,304 23,597,377 191 6,226 30.00% 2,135,504 248 357 69 324,524.37 467,158 156,800,789 309 327 41.00% 112,275 248 357 69 17,061.96 24,561 8,243,846 66 56 17.00% 19,208 254 328 31 1,343.14 1,734 633,639 876 5 17.00% 1,784 254 328 31 124.73 161 58,840 44 552 143.00% 189,492 247 358 239 99,341.56 143,985 48,193,296 10/29/2022 3Drraft7 OC San Orange County Sanitation District Page 3 of 4 Cost of Service Rate Study Revenue Requirement Exhibit 5 - EDU Definitions factor per sgft Concentrations Ibs/Year APNs (Parcels) EDUs % Rate Revenue BOD, mgl SS, mgl Flow, gpd BOD I TSS Gal per Year 074 - RECREATION VEHICLE PARK 8 1 27.00% 343 356 403 38 41.21 47 13,870 076- RESTAURANT -LOW DEMAND 543 5,341 300.00% 1,831,846 553 402 331 2,977,749.48 2,164,657 645,231,612 077- RESTAURANT -COFFEE SHOP 397 6,557 600.00% 2,249,163 553 402 662 7,312,237.31 5,315,587 1,584,447,148 078- RESTAURANT -DINNER HOUSE 206 6,078 600.00% 2,084,639 553 402 662 6,777,352.77 4,926,756 1,468,546,057 079 - RESTAURANT - CONVERSION FROM SFR 5 47 600.00% 16,188 553 402 662 52,629.42 38,259 11,403,971 081 - PRE-SCHOOLS, NURSERY ORCHILDCARE 148 642 82.00% 220,151 254 328 138 68,529.77 88,495 32,329,440 082 - PRIVATE SCHOOLS 145 4,486 82.00% 1,538,764 254 328 138 478,995.11 618,545 225,969,580 083 - AUTOMOTIVE SERVICE STATION 244 257 41.00% 88,218 248 366 68 13,211.84 19,498 6,383,580 084 - MARINE SERVICE STATION 1 1 41.00% 343 248 366 68 51.37 76 24,820 085-COMBIN:SERVICESTATION/RESTAURANT 4 44 100.00% 15,009 248 366 68 2,247.80 3,317 1,086,073 086-COMBIN:SERVICESTATION/CONVENIENCE 229 231 41.00% 79,225 248 366 68 11,865.07 17,511 5,732,856 088 - LOW DEMAND CENTER 770 7,834 53.00% 2,686,982 577 529 55 757,267.72 694,271 157,262,887 089- AVERAGE DEMAND CENTER 677 21,669 139.00% 7,432,460 577 529 138 5,255,736.81 4,818,518 1,091,466,490 090-HIGH FLOW CENTER 1,063 32,423 226.00% 11,121,253 577 529 224 12,765,083.87 11,703,170 2,650,943,491 092-SKATING RINKS 5 212 112.00% 72,754 676 582 103 44,986.84 38,731 7,974,279 094- DEPARTMENT STORE 41 1,048 23.00% 359,378 248 366 38 30,076.85 44,388 14,532,263 095 - DISCOUNT STORE 72 1,019 23.00% 349,570 248 366 38 29,256.07 43,176 14,135,686 096- UNATTACHED SINGLE STORE 1,144 2,344 23.00% 803,959 248 366 38 67,284.53 99,299 32,509,938 097-STRIP STORE 243 494 23.00% 169,460 248 366 38 14,182.39 20,930 6,852,520 098-STORE WITH OFFICES OR LIVING UNITS 750 2,316 82.00% 794,391 254 328 138 247,282.34 319,325 116,657,322 099 - STORE WITH OFFICES UPSTAIRS 44 305 82.00% 104,533 254 328 138 32,539.73 42,020 15,350,863 100- DRIVE-IN THEATER 10.00% 256 390 16 - 0 0 101- UNATTACHED THEATER 27 278 51.00% 95,367 249 349 86 18,135.94 25,419 8,727,568 103- CHEMICAL TANK AND BULKSTORAGE 1 1 100.00% 494 238 327 175 182.69 251 91,980 104 - FOOD PROCESSING PLANT 26 1,630 100.00% 559,226 238 327 175 206,846.60 284,197 104,141,549 105 - COLD STORAGE PLANT 7 259 100.00% 88,989 238 327 175 32,915.39 45,224 16,571,989 106 - FACTORY 31 760 100.00% 260,631 238 327 175 96,402.24 132,452 48,535,866 107- LIGHT INDUSTRIAL -SINGLETENANT 1,664 16,676 50.00% 5,719,715 238 327 52 628,638.28 863,717 316,502,012 108- LIGHT INDUSTRIAL- MULTI TENANT 690 6,475 50.00% 2,220,801 238 327 52 244,082.13 335,357 122,888,614 109 - RESEARCH AND DEVELOPMENT 28 552 50.00% 189,399 238 327 52 20,816.28 28,601 10,480,424 110 - WAREHOUSE - SINGLE TENANT 3,574 14,164 17.00% 4,858,336 530 572 17 388,739.33 419,545 87,889,142 111- WAREHOUSE - MULTI TENANT 1,804 5,380 17.00% 1,845,493 530 572 17 147,666.94 159,369 33,385,664 112-STEEL BUILDING 116 179 7.00% 61,507 530 572 7 2,026.48 2,187 458,162 10/29/2022 3Dr0aft7 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 5 - EDU Definitions 113 - MINI -WAREHOUSE 114 - INDUSTRIAL PARK 115 - RECREATIONAL VEHICLE STORAGE YARD 116-TRUCK TERMINAL 118 - GOVERNMENTAL USEVACANT/DEVELOPED 119 - PUBLIC UTILITY 120 - WATER MUTUAL OR COMPANY 121 - PARCEL OF MINIMAL OR NO VALUE 122 - SUBSURFACE PARCELS 124 - OIL/MINERAL RIGHTS 125 - MINERAL RIGHTS EQUIPMENT 126 - VACANT COMMON AREA-IMPSALLOCATED 127 - 128 - 222 - OFFICE CONDO W/OUT INDIVIDUAL BATHROOMS 223 - LAUNDROMAT 224 - NIGHTCLUB 225 - UNITED STATES POST OFFICE 333 - IRVINE RANCH WATER DISTRICT 555 - OPEN AIR FACILITIES 666 - UNASSIGNED VACANT 777 - SEPTIC TANK 888 -CONVERSION -COMPOSITE PROPERTY 999 - Manually Calculated Fee Total Total per Day Ibs and Gallons Total per mg and liter Total per EDU ( mg/L, GPD) Page 4 of 4 factor persgft APNs (Parcels) EDUs % Rate Revenue Concentrations BOD, mgl SS, mgl Flow, gpd Ibs/Year BOD TSS Gal per Year 167 707 7.00% 242,358 530 572 7 7,985.06 8,618 1,805,323 703 7,295 50.00% 2,502,070 238 327 52 274,995.73 377,830 138,452,758 12 16 17.00% 5,322 530 572 17 425.85 460 96,280 20 280 17.00% 96,053 530 572 17 7,685.66 8,295 1,737,633 7,512 5,577 82.00% 1,913,026 248 357 137 577,217.14 830,913 278,894,626 50 53 100.00% 18,247 238 327 175 6,749.05 9,273 3,397,960 22 139 100.00% 47,525 238 327 175 17,578.45 24,152 8,850,265 1,251 0 0.00% 0 0 - 0 0 18 0 0.00% 0 0 0 0 9 0 0.00% 0 0 0 0 0 0 0 20 0 0.00% 0 0 0 0 0 0 0 260 270 3825 0 0 6 0 21.00% 0 - 0 0 1800.00% 59 667 200.00% 228,937 288 274 350 204,938.40 194,976 85,267,486 39 363 35.00% 124,572 405 354 - 0 0 6,489 0 0.00% 0 0 0 1 0 1133.00% 0 0 0 317 0 0.00% 0 0 0 0 1,832 0 0.00% 0 - 0 0 13 1 100.00% 343 206 219 253 158.76 169 92,345 1,514 31,803 100.00% 10,908,514 0 0 0 556,613 923,111 $316,627,199 123,424,683 151,870,431 52,333,583,290 338,150 416,083 143,379,680 55,984,494,456,898 68,887,268,582,863 198,104,162,676 283 348 143 10/29/2022 3 Drraft7 OC San Orange County Sanitation District Page 1 of 5 Cost of Service Rate Study Revenue Requirement Exhibit 6 - Revenue at Present Rates EDU Forecast FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 000 - CONVERSION-C/I, RURAL PC LIEN DATE 9 9 9 9 9 9 9 9 9 9 9 9 As General Users 001- VACANT LAND PARCEL 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 002 - ONE RESIDENCE 451,297 451,297 451,599 452,954 454,313 455,676 457,043 458,414 459,790 461,169 462,552 463,940 As General Users 003 -TWO OR MORE RESIDENCES 13,257 13,257 13,266 13,306 13,346 13,386 13,426 13,466 13,507 13,547 13,588 13,628 As General Users 004- MISCELLANEOUS IMPROVEMENTSONLY 239 239 239 240 241 242 242 243 244 245 245 246 As General Users 005 - COMMON AREA PARCEL 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 006 - "HOLD" PARCEL 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 007-MOBILEHOME 126 126 126 126 127 127 128 128 128 129 129 130 As General Users 008 - EQUIVALENT TO VACANT 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 010 - DUPLEX ONLY 8,219 8,219 8,225 8,249 8,274 8,299 8,324 8,349 8,374 8,399 8,424 8,449 As General Users 011 -TRIPLEX ONLY 4,881 4,881 4,885 4,899 4,914 4,929 4,943 4,958 4,973 4,988 5,003 5,018 As General Users 012 - 04-UNITS ONLY 19,502 19,502 19,515 19,574 19,632 19,691 19,750 19,810 19,869 19,929 19,988 20,048 As General Users 013-APARTMENTS ONLY 26,317 26,317 26,335 26,414 26,493 26,573 26,652 26,732 26,812 26,893 26,974 27,054 As General Users 014 - 17-25 UNITS ONLY 8,664 8,664 8,670 8,696 8,722 8,748 8,774 8,801 8,827 8,854 8,880 8,907 As General Users 015 - 26-40 UNITS ONLY 8,632 8,632 8,638 8,664 8,690 8,716 8,742 8,768 8,794 8,821 8,847 8,874 As General Users 016-41-99 UNITS ONLY 26,889 26,889 26,907 26,987 27,068 27,150 27,231 27,313 27,395 27,477 27,559 27,642 As General Users 017-100 OR MORE UNITS 63,024 63,024 63,066 63,255 63,445 63,636 63,826 64,018 64,210 64,403 64,596 64,790 As General Users 018 - DEVELOPED WITH A MIX OF FORM TYPES 5,080 5,080 5,083 5,099 5,114 5,129 5,145 5,160 5,176 5,191 5,207 5,222 As General Users 019 - SF WITH 1 OR 2 RENTAL UNITS 95 95 95 95 95 96 96 96 96 97 97 97 As General Users 020-AMUSEMENT PARKS 5,345 5,345 5,348 5,364 5,380 5,397 5,413 5,429 5,445 5,462 5,478 5,494 As General Users 021 - AUTOMOBILE DEALERSHIP 1,467 1,467 1,468 1,472 1,476 1,481 1,485 1,490 1,494 1,499 1,503 1,508 As General Users 022 - AUTO REPAIR SHOP 1,245 1,245 1,246 1,250 1,254 1,257 1,261 1,265 1,269 1,272 1,276 1,280 As General Users 023 - AUTOMOTIVE SERVICE 1,074 1,074 1,075 1,078 1,082 1,085 1,088 1,091 1,095 1,098 1,101 1,104 As General Users 024 - USED CAR LOT 130 130 130 130 131 131 132 132 132 133 133 134 As General Users 026- AIRPORT AND RELATED BUILDINGS 456 456 456 458 459 460 462 463 464 466 467 469 As General Users 028-BOWLING ALLEYS 227 227 227 228 228 229 230 230 231 232 232 233 As General Users 029 - CONVENTIONAL CAR WASH 1,054 1,054 1,055 1,058 1,061 1,065 1,068 1,071 1,074 1,077 1,081 1,084 As General Users 030 - COIN OPERATED CAR WASH 162 162 162 162 163 163 164 164 165 165 166 166 As General Users 032 - CEMETERY AND RELATED BUILDINGS 205 205 205 206 206 207 208 208 209 210 210 211 As General Users 033-CHURCH BUILDINGS 2,816 2,816 2,818 2,826 2,835 2,843 2,852 2,860 2,869 2,878 2,886 2,895 As General Users 034 - DORMITORY 617 617 618 619 621 623 625 627 629 631 633 634 As General Users 035 - ENTERTAINMENT CENTER 474 474 475 476 477 479 480 482 483 485 486 488 As General Users 036 - FINANCIAL BUILDINGS 564 564 564 566 568 569 571 573 574 576 578 580 As General Users 037 - FRATERNAL BUILDINGS 368 368 369 370 371 372 373 374 375 376 378 379 As General Users 038 - FUNERAL HOME 119 119 119 120 120 121 121 121 122 122 122 123 As General Users 10/29/2022 35Dra 57 OC San Orange County Sanitation District Page 2 of 5 Cost of Service Rate Study Revenue Requirement Exhibit 6 - Revenue at Present Rates EDU Forecast FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 039 - GOLF COURSE 349 349 349 350 351 352 353 354 355 356 357 359 As General Users 040-HEALTH CLUB 306 306 306 307 308 309 310 311 312 313 313 314 As General Users 042 - HOSPITAL 3,826 3,826 3,828 3,840 3,851 3,863 3,874 3,886 3,898 3,909 3,921 3,933 As General Users 043 - HIGH DEMAND HOTEL/MOTEL 8,305 8,305 8,311 8,336 8,361 8,386 8,411 8,436 8,462 8,487 8,512 8,538 As General Users 044 - LUMBER/CONST. MATERIALSYARD 54 54 54 55 55 55 55 55 55 56 56 56 As General Users 045 - MARINAS 34 34 34 34 34 34 34 34 34 35 35 35 As General Users 047-SUPERMARKET 4,467 4,467 4,470 4,484 4,497 4,511 4,524 4,538 4,551 4,565 4,579 4,592 As General Users 048-CONVENIENCE MARKET 581 581 582 584 585 587 589 591 592 594 596 598 As General Users 050- SINGLE MEDICAL BLDGS TO 3 STORIES 5,504 5,504 5,508 5,525 5,541 5,558 5,575 5,591 5,608 5,625 5,642 5,659 As General Users 051 - SMALL MEDICAL CENTER 429 429 429 431 432 433 434 436 437 438 440 441 As General Users 052 - MEDICAL CENTER COMPLEX 1,413 1,413 1,414 1,418 1,423 1,427 1,431 1,435 1,440 1,444 1,448 1,453 As General Users 053 - HIGH RISE MEDICAL 2,284 2,284 2,285 2,292 2,299 2,306 2,313 2,320 2,327 2,334 2,341 2,348 As General Users 054 - CONVERTED RESIDENCE TO MED OFFICE 72 72 72 72 72 72 73 73 73 73 73 74 As General Users 055 - MOBILEHOME PARK 12,200 12,200 12,208 12,244 12,281 12,318 12,355 12,392 12,429 12,466 12,504 12,541 As General Users 056 - LOW DEMAND HOTEL/MOTEL 12,184 12,184 12,192 12,229 12,265 12,302 12,339 12,376 12,413 12,450 12,488 12,525 As General Users 057-MOTORCYCLE/SMALLVEHICLEBLDGS 23 23 23 23 23 23 23 24 24 24 24 24 As General Users 058-NURSERIES 26 26 26 26 26 26 26 26 26 27 27 27 As General Users 060 - NURSING HOME 1,488 1,488 1,489 1,494 1,498 1,503 1,507 1,512 1,516 1,521 1,525 1,530 As General Users 061 - CONVALESCENT HOSPITALS 1,916 1,916 1,918 1,923 1,929 1,935 1,941 1,947 1,952 1,958 1,964 1,970 As General Users 062 - CONVERTED RES USED ASNURSING HOME 81 81 81 81 81 81 82 82 82 82 83 83 As General Users 063 - LOW RISE RETIREMENT BUILDING(S) 1,544 1,544 1,545 1,550 1,554 1,559 1,564 1,568 1,573 1,578 1,583 1,587 As General Users 064- HIGH RISE RETIREMENT BUILDING(S) 766 766 766 769 771 773 776 778 780 783 785 787 As General Users 065 - SINGLE OFFICE BLDGS TO 3STORIES 16,473 16,473 16,484 16,533 16,583 16,632 16,682 16,732 16,783 16,833 16,883 16,934 As General Users 066 - SMALL OFFICE CENTER 1,522 1,522 1,523 1,528 1,533 1,537 1,542 1,546 1,551 1,556 1,560 1,565 As General Users 067 - OFFICE COMPLEX 937 937 938 940 943 946 949 952 955 957 960 963 As General Users 068 - HIGH RISE OFFICE 6,226 6,226 6,230 6,249 6,268 6,286 6,305 6,324 6,343 6,362 6,381 6,400 As General Users 069 - CONVERTED RESIDENCE TOOFFICE 327 327 328 329 330 331 331 332 333 334 335 337 As General Users 071- PARKING GARAGE 56 56 56 56 56 57 57 57 57 57 57 58 As General Users 072 - PAVED PARKING LOT 5 5 5 5 5 5 5 5 5 5 5 5 As General Users 073 - RECREATION 552 552 553 554 556 558 559 561 563 565 566 568 As General Users 074 - RECREATION VEHICLE PARK 1 1 1 1 1 1 1 1 1 1 1 1 As General Users 076- RESTAURANT -LOW DEMAND 5,341 5,341 5,344 5,360 5,376 5,392 5,409 5,425 5,441 5,457 5,474 5,490 As General Users 077 - RESTAURANT- COFFEE SHOP 6,557 6,557 6,562 6,581 6,601 6,621 6,641 6,661 6,681 6,701 6,721 6,741 As General Users 078- RESTAURANT -DINNER HOUSE 6,078 6,078 6,082 6,100 6,118 6,137 6,155 6,174 6,192 6,211 6,229 6,248 As General Users 079 - RESTAURANT- CONVERSION FROM SFR 47 47 47 47 48 48 48 48 48 48 48 49 As General Users 081 - PRE-SCHOOLS, NURSERY ORCHILDCARE 642 642 642 644 646 648 650 652 654 656 658 660 As General Users 10/29/2022 36Dra 57 OC San Orange County Sanitation District Page 3 of 5 Cost of Service Rate Study Revenue Requirement Exhibit 6 - Revenue at Present Rates EDU Forecast FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 082 - PRIVATE SCHOOLS 4,486 4,486 4,489 4,503 4,516 4,530 4,543 4,557 4,571 4,584 4,598 4,612 As General Users 083 - AUTOMOTIVE SERVICE STATION 257 257 257 258 259 260 260 261 262 263 264 264 As General Users 084 - MARINE SERVICE STATION 1 1 1 1 1 1 1 1 1 1 1 1 As General Users 085- COM BI N:SERVICESTATION/RESTAURANT 44 44 44 44 44 44 44 44 45 45 45 45 As General Users 086- COMBIN:SERVICESTATION/CONVENIENCE 231 231 231 232 233 233 234 235 235 236 237 237 As General Users 088 - LOW DEMAND CENTER 7,834 7,834 7,839 7,863 7,886 7,910 7,934 7,957 7,981 8,005 8,029 8,053 As General Users 089 - AVERAGE DEMAND CENTER 21,669 21,669 21,684 21,749 21,814 21,879 21,945 22,011 22,077 22,143 22,209 22,276 As General Users 090-HIGH FLOW CENTER 32,423 32,423 32,445 32,543 32,640 32,738 32,836 32,935 33,034 33,133 33,232 33,332 As General Users 092-SKATING RINKS 212 212 212 213 214 214 215 215 216 217 217 218 As General Users 094- DEPARTMENT STORE 1,048 1,048 1,048 1,052 1,055 1,058 1,061 1,064 1,067 1,071 1,074 1,077 As General Users 095 - DISCOUNT STORE 1,019 1,019 1,020 1,023 1,026 1,029 1,032 1,035 1,038 1,041 1,045 1,048 As General Users 096 - UNATTACHED SINGLE STORE 2,344 2,344 2,345 2,353 2,360 2,367 2,374 2,381 2,388 2,395 2,402 2,410 As General Users 097-STRIP STORE 494 494 494 496 497 499 500 502 503 505 506 508 As General Users 098 - STORE WITH OFFICES OR LIVING UNITS 2,316 2,316 2,318 2,325 2,331 2,338 2,345 2,353 2,360 2,367 2,374 2,381 As General Users 099 - STORE WITH OFFICES UPSTAIRS 305 305 305 306 307 308 309 310 310 311 312 313 As General Users 101-UNATTACHED THEATER 278 278 278 279 280 281 282 282 283 284 285 286 As General Users 103- CHEMICALTANK AND BULKSTORAGE 1 1 1 1 1 1 1 1 1 1 1 1 As General Users 104 - FOOD PROCESSING PLANT 1,630 1,630 1,631 1,636 1,641 1,646 1,651 1,656 1,661 1,666 1,671 1,676 As General Users 105-COLD STORAGE PLANT 259 259 260 260 261 262 263 264 264 265 266 267 As General Users 106-FACTORY 760 760 760 763 765 767 770 772 774 776 779 781 As General Users 107- LIGHT INDUSTRIAL - SINGLETENANT 16,676 16,676 16,687 16,737 16,787 16,837 16,888 16,939 16,989 17,040 17,091 17,143 As General Users 108 - LIGHT INDUSTRIAL - MULTI TENANT 6,475 6,475 6,479 6,498 6,518 6,537 6,557 6,577 6,596 6,616 6,636 6,656 As General Users 109 - RESEARCH AND DEVELOPMENT 552 552 553 554 556 558 559 561 563 564 566 568 As General Users 110 - WAREHOUSE - SINGLE TENANT 14,164 14,164 14,174 14,216 14,259 14,302 14,345 14,388 14,431 14,474 14,518 14,561 As General Users 111- WAREHOUSE - MULTI TENANT 5,380 5,380 5,384 5,400 5,416 5,433 5,449 5,465 5,482 5,498 5,515 5,531 As General Users 112-STEEL BUILDING 179 179 179 180 181 181 182 182 183 183 184 184 As General Users 113 - MINI -WAREHOUSE 707 707 707 709 711 713 716 718 720 722 724 726 As General Users 114 - INDUSTRIAL PARK 7,295 7,295 7,300 7,321 7,343 7,365 7,388 7,410 7,432 7,454 7,477 7,499 As General Users 115 - RECREATIONAL VEHICLE STORAGE YARD 16 16 16 16 16 16 16 16 16 16 16 16 As General Users 116-TRUCK TERMINAL 280 280 280 281 282 283 284 284 285 286 287 288 As General Users 118 - GOVERNMENTAL USEVACANT/DEVELOPED 5,577 5,577 5,581 5,598 5,615 5,631 5,648 5,665 5,682 5,699 5,716 5,734 As General Users 119 - PUBLIC UTILITY 53 53 53 53 54 54 54 54 54 54 55 55 As General Users 120 - WATER MUTUAL OR COMPANY 139 139 139 139 139 140 140 141 141 142 142 142 As General Users 121- PARCEL OF MINIMAL OR NO VALUE 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 122 - SUBSURFACE PARCELS 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 10/29/2022 3�OT 57 oC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 6 - Revenue at Present Rates 124 - OIL/MINERAL RIGHTS 126 - VACANT COMMON AREA-IMPSALLOCATED 222 - OFFICE CONDO W/OUT INDIVIDUAL BATHROOMS 223-LAUNDROMAT 224-NIGHTCLUB 225 - UNITED STATES POST OFFICE 333 - IRVINE RANCH WATER DISTRICT 555 - OPEN AIR FACILITIES 666 - UNASSIGNED VACANT 777-SEPTIC TANK 888 - CONVERSION -COMPOSITE PROPERTY 999 - Manually Calculated Fee Total EDUs APN and Permitee Summary General Users Permitted Users Total APN and Permitees General Users General User Rate $/EDU General User Revenue Less Assumed Rebates Net General User Revenue Page 4 of 5 EDU Forecast FY 2020-21 1 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 667 667 668 670 672 674 676 678 680 682 684 686 As General Users 363 363 363 365 366 367 368 369 370 371 372 373 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 0 0 0 0 0 0 0 0 0 0 0 0 As General Users 1 1 1 1 1 1 1 1 1 1 1 1 As General Users 31,803 31,803 31,825 31,920 32,016 32,112 32,208 32,305 32,402 32,499 32,596 32,694 As General Users 923,111 923,111 923,730 926,501 929,281 932,069 934,865 937,669 940,482 943,304 946,134 948,972 924944 920967 923730 926501 929281 932069 934865 937670 556,619 556,619 556,992 558,663 560,339 562,020 563,706 565,397 567,093 568,795 570,501 572,213 As General Users 308 308 308 309 310 311 312 313 314 315 316 317 As General Users 556,927 556,927 557,300 558,972 560,649 562,331 564,018 565,710 567,407 569,109 570,817 572,529 2020-211 2022-22 $343 $347 347 $316,627,199 $320,319,644 $320,534,310 $321,495,913 $322,460,401 $323,427,782 $324,398,065 $325,371,259 $326,347,373 $327,326,415 $328,308,395 $329,293,320 (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) As Flat 10/29/2022 38Dra 57 OC San Orange County Sanitation District Cost of Service Rate Study Revenue Requirement Exhibit 6 - Revenue at Present Rates EDU Forecast FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Permit User Flow - $/1,000,000 Gallons $1,545.35 $1,601.28 BOD-$/1,000 Ibs $664.69 $667.99 SS-$/1,000 Ibs $756.86 $777.00 Million Gallons of Flow 2,806.05 2,806 2,806 2,806 2,806 2,806 2,806 2,806 2,806 2,806 2,806 2,806 Thousand Ibs of BOD 11,450.13 11,450 11,450 11,450 11,450 11,450 11,450 11,450 11,450 11,450 11,450 11,450 Thousand Ibs of SS 2,651.91 2,652 2,652 2,652 2,652 2,652 2,652 2,652 2,652 2,652 2,652 2,652 13,954,229 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 14, 202,366 Property Tax Credit 0 0 0 0 0 0 0 0 0 0 0 0 Net Permit User Revenue $13,954,229 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 $14,202,366 Wastehauler Inside OCSAN Boundries # of Discharges 7150 7,171 5,145 5,145 5,145 5,145 5,145 5,145 5,145 5,145 5,145 5,145 Inside OCSAN - $/Gallon $0.08 $0.09 Gallons 10,823,720 10,856,191 7,788,238 7,788,238 7,788,238 7,788,238 7,788,238 7,788,238 7,788,238 7,788,238 7,788,238 7,788,238 977,057 700,941 700,941 700,941 700,941 700,941 700,941 700,941 700,941 700,941 700,941 Inside OCSAN Wastehauler Revenue 865,898 Outside OCSAN Boundries # of Discharges 790 792 568 568 568 568 568 568 568 568 568 568 Outside OCSAN - $/Gallon $0.18 $0.20 Gallons 757,547 759,820 545,095 545,095 545,095 545,095 545,095 545,095 545,095 545,095 545,095 545,095 151,964 109,019 109,019 109,019 109,019 109,019 109,019 109,019 109,019 109,019 109,019 Outside OCSAN Wastehauler Revenue 136,358 Total Wastehauler Revenue $1,002,256 $1,129,021 $809,960 $809,960 $809,960 $809,960 $809,960 $809,960 $809,960 $809,960 $809,960 $809,960 Page 5 of 5 As Flat As Flat As Flat As Property Tax As Wastehaulers As Wastehaulers As Wastehaulers As Wastehaulers 10/29/2022 39Dra 57 oc San Orange County Sanitation District Cost of Service Rate Study Development of Distribution Factors Exhibit 7 - Volume Distribution Factor Page 1 of 2 Customer Class FY 2023-24 Annual Flow (1,000 Gal) 4.0% Inflow and Infiltration M Total Annual Flow at Plant (1,000 Gal) Avg. Daily Flow At Plant (MGD) Volume All % of Total Volume -WH % of Total General Users 52,560,962 3,153,658 55,714,620 152.64 94.92% 94.93% Permitted Users 2,806,046 168,363 2,974,409 8.15 5.07% 5.07% Wastehaulers 8,333 167 8,500 0.02 0.01% Total Billed Volume 55,375,341 3,322,187 58,697,528 160.82 100.00% 100.00% IRWD 2,075,755 41,515 2,117,270 5.80 SAWPA 5,110,000 102,200 5,212,200 14.28 Total Including IRWD and SAWPA 62,561,096 3,465,902 66,026,998 180.90 Inflow Volume At Treatment Plants [2] 65,948,000 180.68 Distribution Factor (VOL-1) (VOL-2) [1] Inflow and Infiltration assigned to General and Permitted Users. All customers attributed 2% for Urban Dry Weather Runoff [2] 2021 data from P1-P2 Influent.xlsx File Provided by OC San [3] 2021 Avg Daily Flow in MGD, contract capacity = 17 MGD Urban Dry Weather Run Off 1,350,500 0 1,350,500 3.70 2.1 % 10/29/2022 REA7 OC San Orange County Sanitation District Page 2 of 2 Cost of Service Rate Study Development of Distribution Factors Exhibit 8 - Strength Distribution Factors Biological Oxygen Demand Total Suspended Solids Daily Flow Avg. Factor Calculated %of Avg. Factor Calculated %of Customer Class (MGD) (mg/1) Pounds l� Total (mg/1) Pounds l Total General Users 152.64 283 131,313,501 91.8% 348 161,577,388 98.2% Permitted Users 8.15 461 11,450,126 8.0% 107 2,651,906 1.6% Wastehaulers 0.02 5,000 354,450 0.2% 5,000 354,450 0.2% Totals 160.82 292 143,118,077 1.00 336 164,583,744 100.00% IRWD 5.80 138 2,436,809 1.7% 170 3,001,866 1.8% SAWPA 14.28 39 1,709,665 1.2% 93 4,027,037 2.4% 180.90 267 147,264,551 311 171,612,647 Concentration At Treatment Plant [2] 180.68 262 144,216,821 318 174,710,659 Distribution Factor (BOD) (TSS) [1] [2] 2021 data from PI-P2 Influent.xlsx File Provided by OC San 10/29/2022 4'Pb"7 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 9 - Allocation of Plant In Service 6/30/2020 Original Cost Treatment Plant Structures and Improvement Structures and Improvements $345,477,114 Electrical 47,006,877 Land 35,317,555 Ground Water Replenishment System 208,568,242 Total - Treatment Plant Structures and Improvement Wastewater Treatment Pretreatment Headworks Influent Metering and Diversion Bar Screen Blower Boiler Foul Air Scrubber Air Quality Wet Well Grit Removal Primary Basin Secondary Basin Digester Primary Clarifiers Secondary Clarifiers Trickling Filter Aeration Basin Chemical Feed System Polymer Feed Chlorination Sludge Handling Belt Press Solids Handling Effluent Distribution Dissolved Air Flotation Secondary Treatment Activated Sludge Clarifier Return Activated Sludge Pump SCADA Instrumentation and Telemetry Monitoring/Sampling Equipment Control Equipment Instrument & Testing Equipment Water Supply Methane Collection Gas Compressor Chopper Pump Centrifuge Pumps Valves $636,369,788 $5,434,618 35,943,851 34,714,461 115,103,066 45,588,757 8,967,007 117,949,630 14,136,779 144,717 62,903,321 72,138,907 2,425,324 206,792,971 150,783,220 182,700,680 136,815,816 124,727,870 14,469,082 2,017,438 5,093,783 56,844,197 7,187,547 19,565,030 103,072,258 45,582,781 35,045,994 17,305,256 3,614,786 1,608,549 10,951,109 9,113,895 38,876,860 8,784,876 14,368,367 13,197,089 2,800,759 592,132 576,672 10,324,045 1,308,439 Wastewater Concentration Biological Total Volume All Volume-WH Oxygen Suspended Demand Solids Basis Page 1 of 5 $121,173,840 $0 $116,809,403 $107,493,871 As Treatment Less Interplant Collection 16,487,355 0 15,893,514 14,626,008 As Treatment Less Interplant Collection 12,387,402 0 11,941,233 10,988,921 As Treatment Less Interplant Collection 208,568,242 0 0 0 100%(VOL-1) $358,616,839 $0 $144,644,149 $133,108,801 $4,075,963 $0 $271,731 $1,086,924 Headworks 26,957,888 0 1,797,193 7,188,770 Headworks 26,035,846 0 1,735,723 6,942,892 Headworks 86,327,299 0 5,755,153 23,020,613 Headworks 34,191,568 0 2,279,438 9,117,751 Headworks 8,070,306 0 896,701 0 Interplant 88,462,223 0 5,897,482 23,589,926 Headworks 10,602,584 0 706,839 2,827,356 Headworks 108,538 0 7,236 28,943 Headworks 47,177,491 0 3,145,166 12,580,664 Headworks 0 0 21,641,672 50,497,235 Primary Sedimentation 0 0 1,697,726 727,597 Secondary Sedimentation 0 0 51,698,243 155,094,728 Digestion 0 0 45,234,966 105,548,254 Primary Sedimentation 0 0 127,890,476 54,810,204 Secondary Sedimentation 0 0 136,815,816 0 Trickling Filters 0 0 124,727,870 0 Aeration Equipment and Structures 0 0 3,617,270 10,851,811 Sludge Thickening 0 0 504,360 1,513,079 Sludge Thickening 0 0 1,273,446 3,820,337 Sludge Thickening 0 0 14,211,049 42,633,148 Sludge Thickening 0 0 1,796,887 5,390,660 Sludge Thickening 0 0 4,891,257 14,673,772 Solids Handling 103,072,258 0 0 0 Effluent Disposal 0 0 13,674,834 31,907,946 Primary Sedimentation 0 0 24,532,196 10,513,798 Secondary Sedimentation 0 0 17,305,256 0 Activated Sludge Process 0 0 3,614,786 0 Activated Sludge Process 1,447,694 0 160,855 0 Interplant 9,855,998 0 1,095,111 0 Interplant 8,202,506 0 911,390 0 Interplant 34,989,174 0 3,887,686 0 Interplant 7,906,389 0 878,488 0 Interplant 12,931,530 0 1,436,837 0 Interplant 0 0 3,299,272 9,897,817 Digestion 2,520,683 0 280,076 0 Interplant 532,919 0 59,213 0 Interplant 519,005 0 57,667 0 Interplant 9,291,640 0 1,032,404 0 Interplant 1,177,595 0 130,844 0 Interplant 10/29/2022 42DW57 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 9 - Allocation of Plant In Service ascription 6/30/2020 Sluice gate 78,327 Knife Gate Valve 58,240 High Strength BOD 9,405 Ocean Outfall Booster Station 25,516,205 Outfall 72,134,035 Surge Sturcture 53,010 Wastehauler Facilities 2,224,344 Air Compressor 2,457,295 Interplant Interceptor 5,762,020 Tunnel & Piping 29,548,004 Bypass 390,568 Lift Station 83,004,862 Pump Stations 42,746,807 Collection Line 70,798,481 Flow Meter 1,415,253 Force Main 929,394 Total - Wastewater Treatment $2,076,698,187 Revenue Area 14 Trunkline $26,162,942 Pump Station 7,186,481 Telemetry 19,644 Misc. Equipment 6,139 Total - Revenue Area 14 $33,375,206 Revenue Area 15 Land $3,974,869 Trunk 366,775,089 Pump Station 118,421,602 Diversion Sewer 3,425,917 Siphon 11,291,496 Interceptor 94,171,908 Force Main 48,138,759 Wet Well 52,030 Manhole 12,382,651 Gates and Valves 60,327,214 Telemetry 287,646 Flowmeter 1,172,378 Misc. Equipment 43,686 Generator 116,167 Odor Control 19,164 JOS Outfall 98,475 Total - Revenue Area 15 $720,699,050 Original Cost Plant Before General Plant $3,467,142,232 Volume All I Volume -WH (VOL-1) 70,494 52,416 0 25,516,205 72,134,035 53,010 2,001,910 2,211,566 5,185,818 26,593,204 351,512 74,704,376 38,472,127 63,718,633 1,273,727 (VOL-2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Wastewater Concentration Biological Total Oxygen Suspended Demand Solids (BOD) (TSS) Basis of Classificai 7,833 0 Interplant 5,824 0 Interplant 2,351 7,054 Sludge Thickening 0 0 Effluent Disposal 0 0 Effluent Disposal 0 0 Effluent Disposal 222,434 0 Interplant 245,730 0 Interplant 576,202 0 Interplant 2,954,800 0 Interplant 39,057 0 Interplant 8,300,486 0 Interplant 4,274,681 0 Interplant 7,079,848 0 Interplant 141,525 0 Interplant 92,939 0 Interplant $0 $23,546,647 $2,616,294 $0 Collection 0 6,467,833 718,648 0 Collection 5,823 4,688 5,072 4,061 As All Others 1,820 1,465 1,585 1,269 As All Others $7,643 $30,020,634 $3,341,599 $5,330 $1,178,238 $948,614 $1,026,292 $821,724 As All Others 0 330,097,580 36,677,509 0 Collection 0 106,579,442 11,842,160 0 Collection 0 3,083,325 342,592 0 Collection 0 10,162,346 1,129,150 0 Collection 0 84,754,717 9,417,191 0 Collection 0 43,324,883 4,813,876 0 Collection 39,022 0 2,601 10,406 Headworks 0 11,144,386 1,238,265 0 Collection 0 54,294,492 6,032,721 0 Collection 85,265 68,648 74,269 59,465 As All Others 0 1,055,141 117,238 0 Collection 12,949 10,426 11,279 9,031 As All Others 34,434 27,724 29,994 24,015 As All Others 14,373 0 958 3,833 Headworks 98,475 0 0 0 Effluent Disposal $1,197,719,822 $675,572,358 $875,536,267 $718,313,886 Page 2 of 5 10/29/2022 457 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 9 - Allocation of Plant In Service Description 6/30/2020 General Plant Lab Equipment $6,325,142 Portable Office Space 7,580,302 Portable Equipment 3,354,812 Ocean Monitoring Vesse 1,300,000 Vactor Truck 1,156,316 Underground Storage Tank 1,084,429 Plans 238,542 Misc. Equipment 132,268,127 Office Equipment 154,852 Office Furnishings 1,618,021 Security Equipment 357,610 IT Equipment 44,193,843 Vehicles 12,054,324 HVAC 6,860,455 Software 4,235,131 Generators 30,472,891 Total General Plant $253,254,799 Wastewater Concentration Biological Total Volume All Volume-WH Oxygen Suspended Demand Solids Basis $1,874,911 $1,509,514 $1,633,122 $1,307,596 As All Others 2,246,968 1,809,062 1,957,198 1,567,075 As All Others 994,440 800,636 866,197 693,540 As All Others 385,348 310,249 335,654 268,749 As All Others 342,757 275,958 298,555 239,045 As All Others 321,449 258,802 279,994 224,184 As All Others 70,709 56,929 61,590 49,314 As All Others 39,207,171 31,566,186 34,151,003 27,343,766 As All Others 45,901 36,956 39,982 32,012 As All Others 479,617 386,146 417,765 334,493 As All Others 106,004 85,345 92,333 73,929 As All Others 13,100,024 10,546,994 11,410,641 9,136,185 As All Others 3,573,166 2,876,801 3,112,369 2,491,988 As All Others 2,033,589 1,637,268 1,771,337 1,418,261 As All Others 1,255,386 1,010,727 1,093,491 875,528 As All Others 9,032,833 7,272,447 7,867,956 6,299,655 As All Others Page 3 of 5 Total Original Cost Plant in Service $3,720,397,032 $1,272,790,093 $736,022,378 $940,925,355 $770,669,205 Accumulated Depreciation Depreciation of Structures and Improvement Structures and Improvements $239,669,264 $84,062,428 $0 $81,034,669 $74,572,167 As Treatment Less Interplant Collection Electrical 28,325,492 9,934,981 0 9,577,143 8,813,368 As Treatment Less Interplant Collection Land 0 0 0 0 0 As Treatment Less Interplant Collection Ground Water Replenishment System 69,522,747 69,522,747 0 0 0 100% (VOL-1) Total- Depreciation of Structures and Improvement $337,517,504 $163,520,157 $0 $90,611,812 $83,385,534 Depreciation of Wastewater Treatment Pretreatment $2,219,260 $1,664,445 $0 $110,963 $443,852 Headworks Headworks 27,433,246 20,574,935 0 1,371,662 5,486,649 Headworks Influent Metering and Diversion 12,201,596 9,151,197 0 610,080 2,440,319 Headworks Bar Screen 27,949,705 20,962,279 0 1,397,485 5,589,941 Headworks Blower 13,261,665 9,946,249 0 663,083 2,652,333 Headworks Boiler 2,709,752 2,438,777 0 270,975 0 Interplant Foul Air Scrubber 49,045,554 36,784,165 0 2,452,278 9,809,111 Headworks Air Quality 12,976,046 9,732,035 0 648,802 2,595,209 Headworks Wet Well 144,555 108,416 0 7,228 28,911 Headworks Grit Removal 18,837,416 14,128,062 0 941,871 3,767,483 Headworks Primary Basin 46,657,814 0 0 13,997,344 32,660,470 Primary Sedimentation Secondary Basin 2,421,693 0 0 1,695,185 726,508 Secondary Sedimentation Digester 104,567,175 0 0 26,141,794 78,425,381 Digestion Primary Clarifiers 59,360,420 0 0 17,808,126 41,552,294 Primary Sedimentation Secondary Clarifiers 57,495,919 0 0 40,247,143 17,248,776 Secondary Sedimentation Trickling Filter 36,118,744 0 0 36,118,744 0 Trickling Filters Aeration Basin 42,305,724 0 0 42,305,724 0 Aeration Equipment and Structures Chemical Feed System 6,382,079 0 0 1,595,520 4,786,560 Sludge Thickening Polymer Feed 1,852,014 0 0 463,004 1,389,011 Sludge Thickening Chlorination 5,014,990 0 0 1,253,748 3,761,243 Sludge Thickening Sludge Handling 25,754,640 0 0 6,438,660 19,315,980 Sludge Thickening Belt Press 6,728,134 0 0 1,682,033 5,046,100 Sludge Thickening Solids Handling 7,737,501 0 0 1,934,375 5,803,125 Solids Handling Effluent Distribution 44,325,301 44,325,301 0 0 0 Effluent Disposal 10/29/2022 44cor57 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 9 - Allocation of Plant In Service Dissolved Air Flotation Secondary Treatment Activated Sludge Clarifier Return Activated Sludge Pump SCADA Instrumentation and Telemetry Monitoring/Sampling Equipment Control Equipment Instrument & Testing Equipment Water Supply Methane Collection Gas Compressor Chopper Pump Centrifuge Pumps Valves Sluice gate Knife Gate Valve High Strength BOD Ocean Outfall Booster Station Outfal I Surge Sturcture Wastehauler Facilities Air Compressor Interplant Interceptor Tunnel & Piping Bypass Lift Station Pump Stations Collection Line Flow Meter Force Main Total - Depreciation of Wastewater Treatment Depreciation of Revenue Area 14 Trunkline Pump Station Telemetry Misc. Equipment Total - Depreciation of Revenue Area 14 6/30/2020 14,480,801 24,186,694 5,354,771 2,146,077 1,608,549 9,403,677 7,399,264 31,292,150 6,749,708 7,316,095 9,400,643 2,800,759 431,156 569,353 9,208,732 881,220 37,526 35,056 9,405 20,413,774 32,148,089 27,830 1,982,951 1,474,200 5,601,560 23,093,660 390,568 23,893,442 15,464,926 17,128,150 1,401,957 842.186 $14,952,281 $5,055,360 $19, 644 56.139 .]G V,VJJ,YGJ Volume All I Volume -WH (VOL-1) 0 0 0 0 1,447,694 8,463,310 6,659,337 28,162,935 6,074,737 6,584,485 0 2,520,683 388,041 512,417 8,287,859 793,098 33,774 31,551 0 20,413,774 32,148,089 27,830 1,784,656 1,326,780 5,041,404 20,784,294 351,512 21,504,097 13,918,433 15,415,335 1,261,762 757.967 (VOL-2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 yV Wastewater Concentration Biological Total Oxygen Suspended Demand Solids (BOD) (TSS) 4,344,240 10,136,560 16,930,686 7,256,008 5,354,771 0 2,146,077 0 160,855 0 940,368 0 739,926 0 3,129,215 0 674,971 0 731,609 0 2,350,161 7,050,482 280,076 0 43,116 0 56,935 0 920,873 0 88,122 0 3,753 0 3,506 0 2,351 7,054 0 0 0 0 0 0 198,295 0 147,420 0 560,156 0 2,309,366 0 39,057 0 2,389,344 0 1,546,493 0 1,712,815 0 140,196 0 84.219 0 $248,184,797 5267,979,361 Basis of Classification Primary Sedimentation Secondary Sedimentation Activated Sludge Process Activated Sludge Process Interplant Interplant Interplant Interplant Interplant Interplant Digestion Interplant Interplant Interplant Interplant Interplant Interplant Interplant Sludge Thickening Effluent Disposal Effluent Disposal Effluent Disposal Interplant Interplant Interplant Interplant Interplant Interplant Interplant Interplant Interplant Interplant $0 $13,457,053 $1,495,228 $0 Collection 0 4,549,824 505,536 0 Collection 5,823 4,688 5,072 4,061 As All Others 1,820 1,465 1,585 1,269 As All Others $7,643 $18,013,031 $2,007,421 $5,330 Page 4 of 5 10/29/2022 46)b"#ft7 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 9 - Allocation of Plant In Service Description 6/30/2020 Depreciation of Revenue Area 15 Land $33,913 Trunk 180,474,791 Pump Station 54,354,242 Diversion Sewer 1,953,231 Siphon 3,697,139 Interceptor 70,093,970 Force Main 12,411,864 Wet Well 52,030 Manhole 6,057,388 Gates and Valves 14,961,770 Telemetry 287,646 Flowmeter 1,168,785 Misc. Equipment 23,535 Generator 7,744 Odor Control 19,164 JOS Outfall 98,475 Total - Depreciation of Revenue Area 15 $345,695,689 Depreciation of Plant Before General Plant $1,593,922,487 Depreciation of General Plant Lab Equipment 6,317,055 Portable Office Space 4,845,157 Portable Equipment 2,606,521 Ocean Monitoring Vesse 1,300,000 Vactor Truck 798,555 Underground Storage Tank 797,821 Plans 238,542 Misc. Equipment 90,315,500 Office Equipment 154,852 Office Furnishings 1,547,592 Security Equipment 163,153 IT Equipment 41,203,069 Vehicles 8,310,451 HVAC 5,497,336 Software 3,852,718 Generators 30,472,891 Total General Plant $198,421,213 Total Depreciation of Capital Plant in Service $1,792,343,701 Plus: Work In Process $0 Original Cost Less Depreciation $2,928,053,330 Page 5 of 5 Volume All I Volume -WH (VOL-1) I (VOL-2) Wastewater Concentration Biological Total Oxygen Suspended Demand Solids (BOD) (TSS) Basis $10,053 $8,094 $8,756 $7,011 As All Others 0 162,427,312 18,047,479 0 Collection 0 48,918,818 5,435,424 0 Collection 0 1,757,908 195,323 0 Collection 0 3,327,425 369,714 0 Collection 0 63,084,573 7,009,397 0 Collection 0 11,170,678 1,241,186 0 Collection 39,022 0 2,601 10,406 Headworks 0 5,451,649 605,739 0 Collection 0 13,465,593 1,496,177 0 Collection 85,265 68,648 74,269 59,465 As All Others 0 1,051,907 116,879 0 Collection 6,976 5,617 6,077 4,865 As All Others 2,296 1,848 2,000 1,601 As All Others 14,373 0 958 3,833 Headworks 98,475 0 0 0 Effluent Disposal $538,295,971 $328,753,100 $375,416,010 $351,457,407 $1,872,514 $1,507,584 $1,631,034 $1,305,924 As All Others 1,436,211 1,156,311 1,250,996 1,001,638 As All Others 772,630 622,054 672,991 538,846 As All Others 385,348 310,249 335,654 268,749 As All Others 236,709 190,578 206,183 165,085 As All Others 236,492 190,402 205,994 164,933 As All Others 70,709 56,929 61,590 49,314 As All Others 26,771,493 21,554,066 23,319,034 18,670,907 As All Others 45,901 36,956 39,982 32,012 As All Others 458,740 369,338 399,581 319,933 As All Others 48,362 38,937 42,125 33,728 As All Others 12,213,493 9,833,236 10,638,437 8,517,903 As All Others 2,463,400 1,983,314 2,145,719 1,718,018 As All Others 1,629,531 1,311,956 1,419,386 1,136,463 As All Others 1,142,030 919,463 994,754 796,472 As All Others 9,032,833 7,272,447 7,867,956 6,299,655 As All Others 58,816,396 $47,353,819 $51,231,416 $41,019,582 97,112,367 $376,106,919 $426,647,426 $392,476,989 $0 $0 $0 $0 As Original Cost Plant Before General 10/29/2022 46)57f$7 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 10 - Allocation of Expenses Total Expenses FY 2023-24 Biological Total Volume All Volume-WH Oxygen Suspended Demand Solids Basis of Classification Expenses Total Operations & Maintenance Expense $209,891,777 Preliminary Treatment - Plant #1 3.1% $6,439,560 $4,829,670 $0 $321,978 $1,287,912 Headworks Primary Treatment - Plant #1 6.4% 13,444,703 2,016,705 0 3,361,176 8,066,822 Primary Sedimentation O&M Secondary Treatment - Plant #1 2.6% 5,413,501 0 0 5,413,501 0 Secondary Sedimentation O&M Effluent Disposal - Plant #1 0.0% 41,555 41,555 0 0 0 Effluent Disposal Solids Handling - Plant #1 Solids Handling 10.8% $22,636,221 $0 $0 $5,659,055 $16,977,166 Solids Handling Solids Disposals 8.1% 17,093,598 0 0 7,692,119 9,401,479 Solids Disposal Co -Generation Facilities - Plant #1 8.2% 17,187,959 0 0 4,296,990 12,890,969 Digestion Utility Units - Plant #1 1.3% 2,743,651 246,831 394,583 825,599 1,276,638 As All Others O&M Electrical Distribution - Plant #1 0.8% 1,692,893 152,300 243,466 509,413 787,714 As All Others O&M Miscellaneous Buildings - Plant #1 5.0% 10,528,011 947,147 1,514,103 3,168,011 4,898,750 As All Others O&M Preliminary Treatment - Plant #2 2.5% 5,194,118 3,895,589 0 259,706 1,038,824 Headworks Primary Treatment - Plant #2 3.4% 7,181,356 1,077,203 0 1,795,339 4,308,813 Primary Sedimentation O&M Secondary Treatment - Plant #2 3.3% 6,881,627 0 0 6,881,627 0 Secondary Sedimentation O&M Oxygen Generation Facility (Air Product) 0.5% 1,094,468 0 0 1,094,468 0 100%(BOD) Effluent Disposal - Plant #2 0.7% 1,504,016 1,504,016 0 0 0 Effluent Disposal Solids - Plant #2 Solids Handling 6.1% $12,887,915 $0 $0 $3,221,979 $9,665,936 Solids Handling Solids Disposals 3.7% 7,816,481 0 0 3,517,416 4,299,064 Solids Disposal Central Generation Facility - Plant #2 3.1% 6,596,431 593,444 948,677 1,984,949 3,069,361 As All Others O&M Utility Units - Plant #2 0.8% 1,659,356 149,283 238,643 499,321 772,109 As All Others O&M Electrical Distribution - Plant #2 0.6% 1,311,431 117,982 188,606 394,626 610,217 As All Others O&M Miscellaneous Buildings - Plant #2 1.7% 3,495,583 314,478 502,723 1,051,865 1,626,517 As All Others O&M External Location 0.3% 650,543 58,526 93,559 195,757 302,702 As All Others O&M Nerissa 0.1% 299,978 26,987 43,142 90,267 139,581 As All Others O&M Revenue Area 13 0.0% 9,634 0 8,671 482 482 Collection O&M Revenue Area 1 0.2% 404,290 0 363,861 20,214 20,214 Collection O&M Revenue Area 2 2.6% 5,551,050 0 4,995,945 277,553 277,553 Collection O&M Revenue Area 3 3.6% 7,487,637 0 6,738,874 374,382 374,382 Collection O&M Revenue Area 14 0.0% 98,878 0 88,990 4,944 4,944 Collection O&M Revenue Area 5 2.8% 5,827,290 0 5,244,561 291,364 291,364 Collection O&M Revenue Area 6 0.3% 600,369 0 540,332 30,018 30,018 Collection O&M Revenue Area 7 0.6% 1,354,052 0 1,218,647 67,703 67,703 Collection O&M Revenue Area 11 1.1% 2,405,454 0 2,164,908 120,273 120,273 Collection O&M Joint Revenue Areas 0.7% 1,462,451 131,569 210,325 440,070 680,488 As All Others O&M Non Area Specific 14.7% 30,895,718 2,779,517 4,443,319 9,296,910 14,375,972 As All Others O&M Additional Expenditures (Input on Dashboard) $0 $0 $0 $0 $0 As All Others O&M Total Operations & Maintenance Expense $209,891,777 1 $18,882,803 $30,185,933 $63,159,074 $97,663,967 Page 1 of 2 10/29/2022 47 of57 OC San Orange County Sanitation District Page 2 of 2 Cost of Service Rate Study Functionalization and Allocation Exhibit 10 - Allocation of Expenses Total Strength Biological Total Volume All Volume-WH Oxygen Suspended Expenses Demand Solids Description FY 2023-24 (VOL-1) (VOL-2) (BOD) (TSS) Basis of Classification $86,561,706 $40,955,955 $80,720,561 $88,536,419 Capital Capital Funded Through Rates (Capital Exp less Transfer In) $296,774,641 Transfers Out Equity Purchases (joint Operations) $3,500,000 $314,876 $503,358 $1,053,194 $1,628,572 As Total Operations & Maintenance Self Insurance Fund Requirements 3,850,000 346,363 553,694 1,158,513 1,791,429 As Total Operations & Maintenance Total Transfers Out $7,350,000 $661,239 $1,057,052 $2,211,707 $3,420,001 Transfers In Use of Fund Balance (Policy Driven Adjustment) ($85,196,742) ($29,146,774) ($16,854,614) ($21,547,102) ($17,648,252) As Original Cost Plant In Service Total Transfers In ($85,196,742) ($29,146,774) ($16,854,614) ($21,547,102) ($17,648,252) Debt Service 2010A Build America Bonds $2,986,574 $1,046,632 $557,497 $796,622 $585,824 Original Cost Less Depreciation 2010C Build America Bonds 6,724,010 2,356,399 1,255,156 1,793,524 1,318,930 Original Cost Less Depreciation 2014A Refunding 11,044,000 3,870,321 2,061,559 2,945,813 2,166,307 Original Cost Less Depreciation 2015A Refunding 6,375,500 2,234,266 1,190,101 1,700,564 1,250,569 Original Cost Less Depreciation 2016A Refunding 11,396,050 3,993,695 2,127,275 3,039,717 2,235,362 Original Cost Less Depreciation 2017A Refunding 3,290,750 1,153,229 614,277 877,756 645,488 Original Cost Less Depreciation 2021A Refunding 22,713,500 7,959,845 4,239,879 6,058,469 4,455,307 Original Cost Less Depreciation 2022A Refunding 4,081,000 1,430,168 761,791 1,088,543 800,498 Original Cost Less Depreciation New Low Interest Loan 0 0 0 0 0 Total Capital New COP 0 0 0 0 0 Total Capital Debt Issuance Costs 0 0 0 0 0 Total Capital Total Debt Service $68,611,384 $24,044,555 $101,003,529 $12,807,536 $68,151,862 $18,301,009 $142,845,249 $13,458,285 $185,430,420 Total Revenue Requirements $497,431,060 Less: Miscellaneous Revenues Property Taxes $112,081,316 $22,758,146 $15,355,998 $32,185,935 $41,781,238 As Total Revenue Requirement Less Direct! IRWD 0&M Assessment 0 0 0 0 0 As Total Revenue Requirement Less Direct / IRWD Capital Assessment 0 0 0 0 0 As Total Revenue Requirement Less Direct / IRWD Solids Assessment 0 0 0 0 0 As Total Revenue Requirement Less Direct / IRWD 16,358,057 16,358,057 0 0 0 100%(VOL-1) SAWPA 3,138,000 3,138,000 0 0 0 100%(VOL-1) New COP Issues 0 0 0 0 0 As Total Revenue Requirement Less Direct / Interest Revenues 0 0 0 0 0 As Total Revenue Requirement Less Direct / Capital Facilities Capacity Charges 0 0 0 0 0 As Total Revenue Requirement Less Direct / General User Rebates (12,000,000) (2,436,604) (1,644,092) (3,445,991) (4,473,313) As Total Revenue Requirement Less Direct / Equity Sale to 7 or 14 3,500,000 314,876 503,358 1,053,194 1,628,572 As Total Operations & Maintenance Share of SFI Revenue 3,850,000 346,363 553,694 1,158,513 1,791,429 As Total Operations & Maintenance Share ofJORevenue 12,058,809 12,058,809 0 0 0 100%(VOL-1) CIP Reimbursements 10,220,909 3,187,879 1,577,973 2,711,361 2,743,696 Total Capital Total Miscellaneous Revenues $149,207,091 $55,725,526 $45,278,003 $16,346,932 $51,804,930 $33,663,012 $109,182,237 $43,471,622 $141,958,798 Net Revenue Requirements $348,223,968 10/29/2022 4AT t57 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 11 - Summary of Basis of Allocation Description Plontj Revenue Requirement 100% (VOL-1) 213 100% (VOL-2) Oj0 100%(BOD) Oj1 100% (TSS) Oj0 Allocation of Plant Assets Types Oj0 Collection 2210 Primary Sedimentation 610 Secondary Sedimentation 610 Interplant 4810 Headworks 2212 As All Others 4410 Effluent Disposal 1012 Activated Sludge Process 410 Oxygen Activated Sludge Process Oj0 Blower Equipment and Structures Oj0 Aeration Equipment and Structures 210 Trickling Filters 210 Sludge Thickening 1210 Digestion 411 Solids Handling 212 Solids Disposal O12 Allocations Based on Plant In Service Oj0 As Treatment Plant Oj0 As Treatment Plant Structures and Improvements Oj0 As Treatment Less Interplant Collection 610 As Revenue Area 14 0/0 As Revenue Area 15 0/0 As Collection (Rev. 14 & 15) Oj0 As Original Cost Plant Before General 1j0 As Original Cost Plant In Service 0/1 As Orginal Cost Plant Before General Less Direct Assignment Oj0 Original Cost Less Depreciation O112 As Original Cost General Plant Oj0 As Orginal Cost of Vehicles Oj0 Allocation of Expense Types Oj0 Secondary Sedimentation O&M O12 Collection O&M Oj9 Primary Sedimentation O&M O12 As All Others O&M O112 Allocation Based on Revenue Requirements Oj0 As Total Operations & Maintenance Oj10 As Total Revenue Requirement Oj0 As Total Revenue Requirement Less Direct Assignment O18 Allocation Based on Capital Projects Oj0 Capital 0/1 Rehabilitation Oj0 Total Capital O14 Strength Biological Total Volume All Volume -WH Oxygen Suspended Demand Solids Totals (VOL-1) (VOL-2) (BOD) (TSS) 100.0 % 100.00% 100.0 % 100.00% 100.0 % 100.00% 100.0 % 100.00% 0.0% 90.0% 10.0% 100.00% 30.0% 70.0% 100.00% 70.0% 30.0% 100.00% 90.0% 10.0% 100.00% 75.0% 5.0% 20.0% 100.00% 29.6% 23.9% 25.8% 20.7% 100.00% 100.0 % 100.00% 100.0 % 100.00% 100.0 % 100.00% 100.0 % 100.00% 100.0 % 100.00% 100.0 % 100.00% 25.0% 75.0% 100.00% 25.0% 75.0% 100.00% 25.0% 75.0% 100.00% 45.0% 55.0% 100.00% 40.3% 0.0% 31.5% 28.1% 100.00% 56.4% 0.0% 22.7% 20.9% 100.00% 35.1% 0.0% 33.8% 31.1% 100.00% 0.0% 89.9% 10.0% 0.0% 100.00% 0.2% 89.6% 10.1% 0.1% 100.00% 0.2% 89.6% 10.1% 0.1% 100.00% 34.5% 19.5% 25.3% 20.7% 100.00% 34.2% 19.8% 25.3% 20.7% 100.00% 34.5% 19.5% 25.3% 20.7% 100.00% 35.0% 18.7% 26.7% 19.6% 100.00% 29.6% 23.9% 25.8% 20.7% 100.00% 29.6% 23.9% 25.8% 20.7% 100.00% 100.0 % 100.00% 0.0% 90.0% 5.0% 5.0% 100.00% 15.0% 25.0% 60.0% 100.00% 9.0% 14.4% 30.1% 46.5% 100.00% 9.0% 14.4% 30.1% 46.5% 100.00% 20.3% 13.7% 28.7% 37.3% 100.00% 20.3% 13.7% 28.7% 37.3% 100.00% 29.2% 13.8% 27.2% 29.8% 100.00% 47.4% 28.6% 21.1% 2.8% 100.00% 31.2% 15.4% 26.5% 26.8% 100.00% 10/29/2022 49"1'67 OC San Orange County Sanitation District Cost of Service Rate Study Functionalization and Allocation Exhibit 12 - Allocation by Component Classification Components Volume Volume All Volume Less Collection Total Volume Strength Distibution Biochemical Oxygen Demand Total Suspended Solids Total Strength Distibution Net Revenue Requirement General Users Permitted Users Wastehaulers Allocation Factor Checks $45,278,003 I $42,977,052 $2,294,394 51,804,930 49,179,414 2,625,517 $97,082,934 $92,156,466 $4,919,911 $109,182,237 $100,176,735 $8,735,098 141,958,798 139,365,719 2,287,354 $160,987,167I $149,356,149 $11,360,615 $6,557 (VOL-1) 0 (VOL-2) $6,557 $270,404 (BOD) 305,725 (TSS) $ 270,404 Net Revenue Requirement $348,223,968 I $331,698,920 $15,942,363 $582,685 10/29/2022 59[0 t7 OC San Orange County Sanitation District Cost of Service Rate Study Cost of Service Summary Exhibit 13 - Summary of Cost Allocation Description eneral Users Permitted Users Wastehaulers Revenues at Present Rates $336,448,278 $321,495,913 $14,202,366 $750,000 Less: Allocated O&M Expenses $348,223,968 $331,698,920 $15,942,363 $582,685 Balance/(Deficency) of Rates ($11,775,690) ($10,203,007) ($1,739,998) $167,315 Required % Change in Rates 3.5%1 3.2% 12.3% -22.3% Page 2 of 3 10/29/2022 5YR47 OC San Orange County Sanitation District Cost of Service Rate Study Cost of Service Summary Exhibit 14 - Average Unit Cost Description Volume (kgal) Strength Related BOD $/Lbs TSS $/Lbs Rate per EDU (doesn't account for Strength) Volume Rate (Simple) BOD Rate (Simple) TSS Rate (Simple) Total Basic Data: Annual Water Consumption(/Kgal) BOD (Lbs) TSS (Lbs) Number of Accounts Equivelant Residential Unit Weighted Customer Wastehauler Trips Revenue Requirement Percent Allocation of Revenue Requirement Per unit Cost ($/MG 1 $/1,000 Ibs) Total I General Users Permitted Users Wastehaulers $1.75 $0.76 $0.86 $1.75 $1.75 $0.79 $0.76 $0.76 $0.76 $0.86 $0.86 $0.86 $1.63 $1.63 $1.63 $1.63 $359.08 $358.01 $389.51 $249.63 $100.11 $99.47 $120.21 $2.81 112.59 108.12 213.42 115.85 146.38 150.42 55.89 130.98 $359.08 $358.01 $389.51 $249.63 55,375,341 52,560,962 2,806,046 8,333 143,118,077 131,313,501 11,450,126 354,450 164,583,744 161,577,388 2,651,906 354,450 558,973 558,663 309 1 969,764 926,501 40,929 2,334 558,973 558,663 309 1 7,940 Total Flow BOD TSS $348,223,968 $97,082,934 $109,182,237 $141,958,798 100.0% 27.9% 31.4% 40.8% $1,753.18 $ 762.88 $ 862.53 $1.75 $0.76 $0.86 44.88% 10/29/2022 59R47 OC San Orange County Sanitation District Cost of Service Rate Study Rate Design Exhibit 15 - Use Code Rate Calculation General Users % _oT EDU Current Rate FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Proposed Rates FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Page 1 of 5 FY 2031-32 000 - CONVERSION-C/I, RURAL PC LIEN DATE 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 001 - VACANT LAND PARCEL 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 002 - ONE RESIDENCE 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 003 - TWO OR MORE RESIDENCES 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 004 - MISCELLANEOUS IMPROVEMENTSONLY 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 005 - COMMON AREA PARCEL 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 006 - "HOLD" PARCEL 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 007-MOBILEHOME 50% 173.50 179.00 185.50 192.00 198.50 205.50 212.50 220.00 227.50 235.50 008 - EQUIVALENT TO VACANT 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 010 - DUPLEX ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 011- TRIPLEX ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 012-04-UNITS ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 013 - APARTMENTS ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 014 - 17-25 UNITS ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 015 - 26-40 UNITS ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 016 - 41-99 UNITS ONLY 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 017 - 100 OR MORE UNITS 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 018 - DEVELOPED WITH A MIX OF FORM TYPES 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 019 -SF WITH 1 OR 2 RENTAL UNITS 85% 294.95 304.30 315.35 326.40 337.45 349.35 361.25 374.00 386.75 400.35 020 - AMUSEMENT PARKS 144% 499.68 515.52 534.24 552.96 571.68 591.84 612.00 633.60 655.20 678.24 021 - AUTOMOBILE DEALERSHIP 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 022-AUTO REPAIR SHOP 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 023 -AUTOMOTIVE SERVICE 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 024 - USED CAR LOT 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 026-AIRPORT AND RELATED BUILDINGS 53% 183.91 189.74 196.63 203.52 210.41 217.83 225.25 233.20 241.15 249.63 028 - BOWLING ALLEYS 112% 388.64 400.96 415.52 430.08 444.64 460.32 476.00 492.80 509.60 527.52 029- CONVENTIONAL CAR WASH 796% 2,762.12 2,849.68 2,953.16 3,056.64 3,160.12 3,271.56 3,383.00 3,502.40 3,621.80 3,749.16 030 - COIN OPERATED CAR WASH 151% 523.97 540.58 560.21 579.84 599.47 620.61 641.75 664.40 687.05 711.21 032 - CEMETERY AND RELATED BUILDINGS 101% 350.47 361.58 374.71 387.84 400.97 415.11 429.25 444.40 459.55 475.71 10/29/2022 53 0aft 7 OC San Orange County Sanitation District Cost of Service Rate Study Rate Design Exhibit 15 - Use Code Rate Calculation Page 2 of 5 Current Rate Proposed Rates General Users % o EDU FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 033- CHURCH BUILDINGS 20% 69.40 71.60 74.20 76.80 79.40 82.20 85.00 88.00 91.00 94.20 034 - DORMITORY 97% 336.59 347.26 359.87 372.48 385.09 398.67 412.25 426.80 441.35 456.87 035 - ENTERTAINMENT CENTER 144% 499.68 515.52 534.24 552.96 571.68 591.84 612.00 633.60 655.20 678.24 036- FINANCIAL BUILDINGS 27% 93.69 96.66 100.17 103.68 107.19 110.97 114.75 118.80 122.85 127.17 037 - FRATERNAL BUILDINGS 51% 176.97 182.58 189.21 195.84 202.47 209.61 216.75 224.40 232.05 240.21 038 - FUNERAL HOME 101% 350.47 361.58 374.71 387.84 400.97 415.11 429.25 444.40 459.55 475.71 039 - GOLF COURSE 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 040- HEALTH CLUB 29% 100.63 103.82 107.59 111.36 115.13 119.19 123.25 127.60 131.95 136.59 042 - HOSPITAL 97% 336.59 347.26 359.87 372.48 385.09 398.67 412.25 426.80 441.35 456.87 043 - HIGH DEMAND HOTEL/MOTEL 97% 336.59 347.26 359.87 372.48 385.09 398.67 412.25 426.80 441.35 456.87 044 - LUMBER/CONST. MATERIALSYARD 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 045 - MARINAS 53% 183.91 189.74 196.63 203.52 210.41 217.83 225.25 233.20 241.15 249.63 047 - SUPERMARKET 151% 523.97 540.58 560.21 579.84 599.47 620.61 641.75 664.40 687.05 711.21 048 - CONVENIENCE MARKET 151% 523.97 540.58 560.21 579.84 599.47 620.61 641.75 664.40 687.05 711.21 050 - SINGLE MEDICAL BLDGS TO 3 STORIES 124% 430.28 443.92 460.04 476.16 492.28 509.64 527.00 545.60 564.20 584.04 051 - SMALL MEDICAL CENTER 124% 430.28 443.92 460.04 476.16 492.28 509.64 527.00 545.60 564.20 584.04 052 - MEDICAL CENTER COMPLEX 124% 430.28 443.92 460.04 476.16 492.28 509.64 527.00 545.60 564.20 584.04 053 - HIGH RISE MEDICAL 124% 430.28 443.92 460.04 476.16 492.28 509.64 527.00 545.60 564.20 584.04 054 - CONVERTED RESIDENCE TO MED OFFICE 124% 430.28 443.92 460.04 476.16 492.28 509.64 527.00 545.60 564.20 584.04 055 - MOBILEHOME PARK 50% 173.50 179.00 185.50 192.00 198.50 205.50 212.50 220.00 227.50 235.50 056 - LOW DEMAND HOTEL/MOTEL 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 057-MOTORCYCLE/SMALL VEHICLEBLDGS 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 058-NURSERIES 10% 34.70 35.80 37.10 38.40 39.70 41.10 42.50 44.00 45.50 47.10 060- NURSING HOME 102% 353.94 365.16 378.42 391.68 404.94 419.22 433.50 448.80 464.10 480.42 061 - CONVALESCENT HOSPITALS 102% 353.94 365.16 378.42 391.68 404.94 419.22 433.50 448.80 464.10 480.42 062 - CONVERTED RES USED ASNURSING HOME 102% 353.94 365.16 378.42 391.68 404.94 419.22 433.50 448.80 464.10 480.42 063 - LOW RISE RETIREMENT BUILDING(S) 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 064 - HIGH RISE RETIREMENT BUILDING(S) 70% 242.90 250.60 259.70 268.80 277.90 287.70 297.50 308.00 318.50 329.70 065 - SINGLE OFFICE BLDGS TO 3STORIES 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 066 - SMALL OFFICE CENTER 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 10/29/2022 54 DrrgfL OC San Orange County Sanitation District Page 3 of 5 Cost of Service Rate Study Rate Design Exhibit 15 - Use Code Rate Calculation Current Rate Proposed Rates General Users I % of EDU FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 067 - OFFICE COMPLEX 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 068 - HIGH RISE OFFICE 30% 104.10 107.40 111.30 115.20 119.10 123.30 127.50 132.00 136.50 141.30 069 - CONVERTED RESIDENCE TOOFFICE 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 071- PARKING GARAGE 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 072 - PAVED PARKING LOT 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 073 - RECREATION 143% 496.21 511.94 530.53 549.12 567.71 587.73 607.75 629.20 650.65 673.53 074 - RECREATION VEHICLE PARK 27% 93.69 96.66 100.17 103.68 107.19 110.97 114.75 118.80 122.85 127.17 076- RESTAURANT -LOW DEMAND 300% 1,041.00 1,074.00 1,113.00 1,152.00 1,191.00 1,233.00 1,275.00 1,320.00 1,365.00 1,413.00 077 - RESTAURANT - COFFEE SHOP 600% 2,082.00 2,148.00 2,226.00 2,304.00 2,382.00 2,466.00 2,550.00 2,640.00 2,730.00 2,826.00 078 - RESTAURANT - DINNER HOUSE 600% 2,082.00 2,148.00 2,226.00 2,304.00 2,382.00 2,466.00 2,550.00 2,640.00 2,730.00 2,826.00 079 - RESTAURANT - CONVERSION FROM SFR 600% 2,082.00 2,148.00 2,226.00 2,304.00 2,382.00 2,466.00 2,550.00 2,640.00 2,730.00 2,826.00 081- PRE-SCHOOLS, NURSERY ORCHILDCARE 82% 284.54 293.56 304.22 314.88 325.54 337.02 348.50 360.80 373.10 386.22 082 - PRIVATE SCHOOLS 82% 284.54 293.56 304.22 314.88 325.54 337.02 348.50 360.80 373.10 386.22 083 - AUTOMOTIVE SERVICE STATION 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 084 - MARINE SERVICE STATION 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 085 - COMBIN:SERVICESTATION/RESTAURANT 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 086-COMBIN:SERVICESTATION/CONVENIENCE 41% 142.27 146.78 152.11 157.44 162.77 168.51 174.25 180.40 186.55 193.11 088 - LOW DEMAND CENTER 53% 183.91 189.74 196.63 203.52 210.41 217.83 225.25 233.20 241.15 249.63 089 - AVERAGE DEMAND CENTER 139% 482.33 497.62 515.69 533.76 551.83 571.29 590.75 611.60 632.45 654.69 090- HIGH FLOW CENTER 226% 784.22 809.08 838.46 867.84 897.22 928.86 960.50 994.40 1,028.30 1,064.46 092-SKATING RINKS 112% 388.64 400.96 415.52 430.08 444.64 460.32 476.00 492.80 509.60 527.52 094 - DEPARTMENT STORE 23% 79.81 82.34 85.33 88.32 91.31 94.53 97.75 101.20 104.65 108.33 095-DISCOUNT STORE 23% 79.81 82.34 85.33 88.32 91.31 94.53 97.75 101.20 104.65 108.33 096 - UNATTACHED SINGLE STORE 23% 79.81 82.34 85.33 88.32 91.31 94.53 97.75 101.20 104.65 108.33 097 - STRIP STORE 23% 79.81 82.34 85.33 88.32 91.31 94.53 97.75 101.20 104.65 108.33 098 - STORE WITH OFFICES OR LIVING UNITS 82% 284.54 293.56 304.22 314.88 325.54 337.02 348.50 360.80 373.10 386.22 099 - STORE WITH OFFICES UPSTAIRS 82% 284.54 293.56 304.22 314.88 325.54 337.02 348.50 360.80 373.10 386.22 100 - DRIVE-IN THEATER 10% 34.70 35.80 37.10 38.40 39.70 41.10 42.50 44.00 45.50 47.10 101 - UNATTACHED THEATER 51% 176.97 182.58 189.21 195.84 202.47 209.61 216.75 224.40 232.05 240.21 103- CHEMICAL TANK AND BULKSTORAGE 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 10/29/2022 D 5rrift� OC San Orange County Sanitation District Cost of Service Rate Study Rate Design Exhibit 15 - Use Code Rate Calculation General Users % o EDU Current Rate FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Proposed Rates FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Page 4 of 5 FY 2031-32 104 - FOOD PROCESSING PLANT 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 105 - COLD STORAGE PLANT 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 106 - FACTORY 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 107 - LIGHT INDUSTRIAL - SINGLETENANT 50% 173.50 179.00 185.50 192.00 198.50 205.50 212.50 220.00 227.50 235.50 108 - LIGHT INDUSTRIAL - MULTI TENANT 50% 173.50 179.00 185.50 192.00 198.50 205.50 212.50 220.00 227.50 235.50 109 - RESEARCH AND DEVELOPMENT 50% 173.50 179.00 185.50 192.00 198.50 205.50 212.50 220.00 227.50 235.50 110 - WAREHOUSE - SINGLE TENANT 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 111 - WAREHOUSE - MULTI TENANT 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 112 - STEEL BUILDING 7% 24.29 25.06 25.97 26.88 27.79 28.77 29.75 30.80 31.85 32.97 113-MINI-WAREHOUSE 7% 24.29 25.06 25.97 26.88 27.79 28.77 29.75 30.80 31.85 32.97 114 - INDUSTRIAL PARK 50% 173.50 179.00 185.50 192.00 198.50 205.50 212.50 220.00 227.50 235.50 115 - RECREATIONAL VEHICLE STORAGE YARD 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 116-TRUCK TERMINAL 17% 58.99 60.86 63.07 65.28 67.49 69.87 72.25 74.80 77.35 80.07 118 - GOVERNMENTAL USEVACANT/DEVELOPED 82% 284.54 293.56 304.22 314.88 325.54 337.02 348.50 360.80 373.10 386.22 119 - PUBLIC UTILITY 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 120 - WATER MUTUAL OR COMPANY 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 121 - PARCEL OF MINIMAL OR NO VALUE 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 122 - SUBSURFACE PARCELS 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 124-OIL/MINERAL RIGHTS 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 125 - MINERAL RIGHTS EQUIPMENT 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 126 - VACANT COMMON AREA-IMPSALLOCATED 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 127 - 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 128 - 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 222 - OFFICE CONDO W/OUT INDIVIDUAL BATHROOMS 21% 72.87 75.18 77.91 80.64 83.37 86.31 89.25 92.40 95.55 98.91 223 - LAUNDROMAT 1800% 6,246.00 6,444.00 6,678.00 6,912.00 7,146.00 7,398.00 7,650.00 7,920.00 8,190.00 8,478.00 224-NIGHTCLUB 200% 694.00 716.00 742.00 768.00 794.00 822.00 850.00 880.00 910.00 942.00 225 - UNITED STATES POST OFFICE 35% 121.45 125.30 129.85 134.40 138.95 143.85 148.75 154.00 159.25 164.85 333 - IRVINE RANCH WATER DISTRICT 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 555 - OPEN AIR FACILITIES 1133% 3,931.51 4,056.14 4,203.43 4,350.72 4,498.01 4,656.63 4,815.25 4,985.20 5,155.15 5,336.43 666 - UNASSIGNED VACANT 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 777 - SEPTIC TANK 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 888 - CONVERSION -COMPOSITE PROPERTY 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 999 - Manually Calculated Fee 100% 347.00 358.00 371.00 384.00 397.00 411.00 425.00 440.00 455.00 471.00 10/29/2022 5 Drraft7 OC San Orange County Sanitation District Page 5 of 5 Cost of Service Rate Study Rate Design Exhibit 15 - Use Code Rate Calculation Current Rate Proposed Rates General Users % o EDU FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 1.753199412 $0.000020 0.001% Permit User (industrial) Allocated Costs Property Tax Adj Net Costs Units Biochemical Oxygen Demand (1,000lbs) $8,735,098 $0 $8,735,098 11,450 Total Suspended Solids (1,000lbs) 2,287,354 0 2,287,354 2,652 Volume (Million Gallons) 4,919,911 0 4,919,911 2,806 Total $15,942,363 $0 $15,942,363 Proposed Rate Current Rate FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 COSA Results 5 Year Rate Transition Biochemical Oxygen Demand (1,000lbs) $667.99 $705.11 $744.28 $785.64 $829.29 $875.37 $906.06 $937.78 $970.60 $1,004.57 Total Suspended Solids (1,000lbs) 777.00 815.53 855.98 898.42 942.98 989.74 1,024.42 1,060.27 1,097.38 1,135.79 Volume (Million Gallons) 1,601.28 1,676.10 1,754.41 1,836.38 1,922.18 2,011.99 2,082.40 2,155.28 2,230.72 2,308.79 Biochemical Oxygen Demand %Change 5.6% 5.6% 5.6% 5.6% 5.6% 3.5% 3.5% 3.5% 3.5% Total Suspended Solids %Change 5.0% 5.0% 5.0% 5.0% 5.0% 3.5% 3.5% 3.5% 3.5% Volume (Million Gallons) % Change 4.7% 4.7% 4.7% 4.7% 4.7% 3.5% 3.5% 3.5% 3.5% Wastehaulers Treatment Charge Proposed Rate Current Rate FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 In -County Treatment $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 Adminstrative 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 Capital Charge NA NA NA NA NA NA NA NA NA Total Wastehauler Charge $0.09 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 Out of County Treatment $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 $0.040 Adminstrative 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 Capital Charge 0.230 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 Total Wastehauler Charge $0.20 $0.320 $0.330 $0.330 $0.330 $0.330 $0.330 $0.330 $0.330 $0.330 10/29/2022 5 J)rrgft� OC San Orange County Sanitation District - 2022 Exhibit 1 Present and Calculated Capital Facilities Capacity Charge Present Calculated $ Use Category Ratio CFCC"' CFCC,2, Difference Change 2023 Single Family Residential (SFR), Per Unit* 5+ Bedrooms 1.39 $7,949 $7,739 ($210) -2.6% 4+ Bedrooms 1.19 6,806 6,626 (180) -2.6% 3+ Bedrooms, *Base Charge 1.00 5,719 5,568 (151) -2.6% 2+ Bedrooms 0.81 4,633 4,511 (122) -2.6% 1+ Bedrooms 0.62 3,545 3,452 (94) -2.6% Multi -Family Residential (MFR) 4+ Bedrooms 1.08 $6,177 $6,014 ($163) -2.6% 3+ Bedrooms 0.89 5,090 4,956 (134) -2.6% 2+ Bedrooms 0.70 4,004 3,898 (106) -2.6% 1+ Bedrooms 0.50 2,859 2,783 (76) -2.7% Studio 0.32 1,829 1,781 (48) -2.6% Non -Residential, Residential Accessory Structures, and Accessory Dwelling Units, Per 1,000 square feet (3) Low Demand $360 $242 ($118) -32.8% Average Demand 2,234 1,485 (749) -33.5% High Demand 5,309 3,521 ($1,788) -33.7% NOTES: (1) Present CFCC effective July 1, 2022. (2) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual of Practice No. 27, 4th Edition, p. 206-211. (3) Average demand is Commercial per 1,000 sq. ft. See Exhibit 3. Page 1 of 11 Orange County Sanitation District - 2022 Exhibit 2 Supplemental Capital Facilities Capacity Charge Calculated Supplemental Capital Facilities Capacity Charge Rate Years Total "' Flow (gpd) BOD (mg/L) TSS (mg/L) A Value of Existing and Future Assets, $ Per Million $6,842 $3,319 $1,881 $1,642 B Total EDUs 1,228,758 1,228,758 1,228,758 1,228,758 C SCFCC per EDU (A - B) $5,568 $2,701 $1,531 $1,336 D 30-Year Amortized SCFCC (2) 3.4% 30 $144 $82 $71 E EDU Basis 185 288 290 0.4481 0.4503 gpd Ibs/day (3) Ibs/day (3) F SCFCC (D - E _ 365 Days) $0.002140 $0.500628 $0.434827 per gallon per lb. per lb. Present and Calculated Supplemental Capital Facilities Capacity Charge Use Category Present SCFCC(4) Calculated SCFCC $ % Difference Change 2022 Daily Charge (5) FLOW $0.001996 $0.002140 $0.000144 7.2% BOD $0.481210 $0.500628 $0.019418 4.0% TSS $0.270840 $0.434827 $0.163987 60.5% NOTES: (1) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual of Practice No. 27, 4th Edition, p. 206-211. (2) Bond Buyer's 20 Bond Index as of July 2022. (3) Calculated pounds equals (annual flow (x) 748 (x) strength factor mg/I (x) 8.34) / 1,000,000 (4) Present SCFCC Ordinance No. OCSD-57, Table D, for July 1, 2022. (5) 2.10 (i) an increase of discharge flow of 25,000 gallons per day (gpd), or 25% per day over its established baseline whichever is less; or (ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the discharge or the District. Page 2 of 11 Orange County Sanitation District - 2022 Exhibit 3 Development of Calculated Capital Facilities Capacity Charge Description FLOW BOD TSS TOTAL BUY -IN (Existing) Assets "' (RCNLD) Sewage Collection Facilities $503,494,522 + $55,943,836 + $0 = $559,438,358 Sewage Treatment Facilities $747,036,211 + $675,868,426 + $535,137,514 = $1,958,042,151 Effluent Disposal 85,569,158 + 0 + 0 = 85,569,158 Solids Disposal Facility 0 + 3,974,804 + 11,924,411 = 15,899,214 Total Treatment $832,605,368 $679,843,229 $547,061,925 $2,059,510,523 Managed by IRWD 23,135,681 + 2,570,631 + 0 = 25,706,312 Total Assets ")(RCNLD) $1,359,235,570 $738,357,696 $547,061,925 $2,644,655,192 Plus: Construction Work In Progress (2) 190,381,235 + 110,980,326 + 106,322,733 = 407,684,294 Total Assets $1,549,616,806 $849,338,022 $653,384,658 $3,052,339,486 Less: Outstanding Debt Principal (3) ($368,799,051) + ($214,986,727) + ($205,964,222) = ($789,750,000) Plus: Reserves (4) $449,058,744 + $261,773,097 + $250,787,075 = $961,618,916 TOTAL BUY -IN (Existing) $1,629,876,499 + $896,124,392 + $698,207,511 = $3,224,208,402 INCREMENTAL (FUTURE) 6 $1,689,310,256 + $984,761,980 + $943,433,755 = $3,617,505,992 TOTAL BUY -IN AND INCREMENTAL $3,319,186,756 $1,880,886,372 $1,641,641,266 $6,841,714,393 Divided (+) by Total EDUs (6) 1,228,758 1,228,758 1,228,758 1,228,758 TOTAL CAPITAL FACILITIES CAPACITY CHARGE (7) $2,701 $1,336 $5,568 Present Capital Facilities Capacity Charge 2023 8 $2,065 $1,990 $1,665 $5,719 $ Change ($151) Residential Percentage EDUs (9) 65.5% 65.5% 65.5% 65.5% $ percentage share $2,174,657,546 $1,232,315,035 $1,075,566,947 $4,482,539,528 Total Residential EDUs 805,055 805,055 805,055 805,055 $ per EDU CFCC $2,701 $1,531 $1,336 $5,568 Present Capital Facilities Capacity Charge 2023 (8) $2,065 $1,990 $1,665 $5,719 $ Change $636 ($459) ($328) ($151) Commercial/Industrial Percentage EDUs i10i 34.5% 34.5% 34.5% 34.5% $ percentage share $1,144,536,103 $648,575,244 $566,077,728 $2,359,189,075 Total Commercial -Industrial Square Footage (1,000 sq ft) 670,099 670,099 670,099 670,099 $ per 1,000 sq. ft. CFCC $1,708 $968 $845 $3,521 Present Capital Facilities Capacity Charge 2023 (8) $1,314 $1,265 $1,059 $3,638 $ Change $394 ($297) ($214) ($117) NOTES: (1) Asset listing as of June, 2021, service date of asset and Sept 2022 ENR, CCI for 20-City Average, See Exhibit 7. (2) Construction work in progress as of June 2021. See Exhibit 3. (3) Outstanding debt service principal as of June 2022. See Exhibit 5. Flow, BOD, TSS split based on % of CIP see Exhibit 8. (4) Cash reserve levels as of June 2022. See Exhibit 6. Flow, BOD, TSS split based on % of CIP see Exhibit 8. (5) Future projects based on Ten -Year CIP from 2021/22 to 2031/32. See Exhibit 8. (6) Existing and future EDUs based on capacity. See Exhibit 7. (7) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual of Practice No. 27, 4th Edition, p. 206-211. (8) Present CFCC as of July 1, 2022 Residential, 3+ Bedrooms, *Base Charge (9) Percentage of residential EDUs see Exhibit 7. (10) Percentage of commercial/industrial EDUs and total square footage per EDU see Exhibit 7. Page 3 of 11 Orange County Sanitation District - 2022 Exhibit 4 Development of Construction Work in Progress LA ENR-CCI 13,120 September 2022 June 30, 2021 ENR 2022 (2) $ CATEGORYM DATE COST FACTOR COST FLOW BOD TSS FLOW BOD TSS Construction Work in Progress 06/01/2021 $401,200,044 1.02 $407,684,294 47% 27% 26% $190,381,235 $110,980,326 $106,322,733 TOTAL $401,200,044 $407,684,294 NOTES: (1) Construction work in progress as of June 30, 2021 CAFR, page 29. (2) CWIP allocated based on overall allocation for CIP. See Exhibit 8. $190,381,235 $110,980,326 $106,322,733 Page 4 of 11 Orange County Sanitation District - 2022 Exhibit 5 Development of Debt Credit (Outstanding debt principal only) 2010A Build 2010C Build 2014A 2015A 2016A 2017A 2021A 2022A (TOTAL PRINCIPAL Year America Bonds America Bonds Refunding Refunding Refunding Refunding Refunding Refunding (1) FY 2022-23 0 0 0 0 0 0 0 0 0 FY 2023-24 0 0 9,085,000 0 5,370,000 0 17,125,000 0 31,580,000 FY 2024-25 0 0 9,545,000 0 5,635,000 0 17,940,000 0 33,120,000 FY 2025-26 0 0 10,025,000 0 5,915,000 0 18,890,000 0 34,830,000 FY 2026-27 0 0 10,525,000 0 6,210,000 15,115,000 4,595,000 0 36,445,000 FY 2027-28 0 0 0 15,240,000 6,525,000 15,830,000 4,825,000 0 42,420,000 FY 2028-29 0 0 0 16,045,000 6,845,000 16,580,000 5,070,000 0 44,540,000 FY 2029-30 0 0 0 15,965,000 7,190,000 18,290,000 5,320,000 0 46,765,000 FY 2030-31 0 5,735,000 0 6,215,000 7,570,000 0 5,590,000 22,485,000 47,595,000 FY 2031-32 0 17,095,000 0 0 7,950,000 0 5,865,000 22,805,000 53,715,000 FY 2032-33 0 17,895,000 0 0 8,350,000 0 6,160,000 36,330,000 68,735,000 FY 2033-34 9,590,000 9,130,000 0 17,180,000 8,760,000 0 6,470,000 0 51,130,000 FY 2034-35 10,145,000 9,440,000 0 18,040,000 9,205,000 0 6,790,000 0 53,620,000 FY 2035-36 10,735,000 9,770,000 0 18,940,000 9,660,000 0 7,130,000 0 56,235,000 FY 2036-37 11,355,000 10,100,000 0 19,885,000 10,145,000 0 0 0 51,485,000 FY 2037-38 12,015,000 10,430,000 0 0 10,550,000 0 0 0 32,995,000 FY 2038-39 12,710,000 10,770,000 0 0 10,975,000 0 0 0 34,455,000 FY 2039-40 13,450,000 11,125,000 0 0 0 0 0 0 24,575,000 FY 2040-41 0 20,805,000 0 0 0 0 0 0 20,805,000 FY 2041-42 0 12,430,000 0 0 0 0 0 0 12,430,000 FY 2042-43 0 9,795,000 0 0 0 0 0 0 9,795,000 FY 2043-44 0 2,480,000 0 0 0 0 0 0 2,480,000 TOTAL $80,000,000 $157,000,000 $39,180,000 $127,510,000 $126,855,000 $65,815,000 $111,770,000 $81,620,000 $789,750,000 NOTES: (1) Outstanding principal balance as of 2022 provided by OCSD. Payment date for Bonds is Feb 1st. 2010A acquisition, construction, and installation of additional improvements made to the wastewater system. 2010C acquisition, construction, and installation of additional improvements made to the wastewater system. 2014A refund $93,930,000, 2007 Series B 2015A refund $152,990,000, 2007 Series B 2016A refund $162,780,000, 2009 Series A 2017A refund $91,620,000, 2007 Series A 2021A 2022A Page 5 of 11 Orange County Sanitation District - 2022 Exhibit 6 Summary of Reserve Funds For the Year Ended June 30, 2022 Account # CFCC Total Eligible (1) CFCC CASH RESERVES $961,618,916 TARGET RESERVES 50% Next Year Operating Expense $100,572,351 10% Next Year Operating Expense 20,114,470 100% Next Year AUG COP Svc. 19,266,567 50% average ten-year CIP Balance 153,752,792 Debt Svc @ 10% Outstanding COP 78,975,000 Self Funded Insurance @ $100M 100,000,000 Repl & Refurb 75,000,000 TOTAL TARGET RESERVES $547,681,180 100% $961,618,916 0% $0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 0 $0 BALANCE $413,937,736 $961,618,916 NOTES: (1) Reserves that are not debt or CIP related levels. Page 6 of 11 Orange County Sanitation District - 2022 Exhibit 7 Development of Equivalent Dwelling Units Permit Rated Capacity Dry Weather Flow Treatment Plant - Permit Capacity (MGD) MGD Plant 1 Fountain Valley Ill 182.00 Plant 2 Huntington Beach (2) 150.00 Net (3) 332.00 332.00 SAWPA") Rights (17 mgd purchased) (30.00) RA 14 (4) (10.00) Urban Dry Weather Runoffi4l 10.00 Total 282.00 EDU Average Household Gallons per Person Per Day (GPCD) I51 75 Number of Persons per Household (6) 3.1 Total Gallons per EDU (6) 230 EQUIVALENT DWELLING UNITS Total Capacity Average Daily Flow EDU Calculation (MGD) gallons Per EDU I6i Total EDUs % of % Growth Equivalent Dwelling Units - Existing Residential 630,912 65.52% Commercial 292,199 30.34% Industrial 39,854 4.14% Equivalent Dwelling Units - Existing 221.00 230 962,963 100.00% 78.37% Equivalent Dwelling Units - Future Residential 174,143 65.52% Commercial 80,652 30.34% Industrial 11,000 4.14% Equivalent Dwelling Units - Future 61.00 230 265,795 100.00% 21.63% Buildout EDU's 282.00 230 1,228,758 100.00% Total Square Feet for Commercial and Industrial Assumption of Square Foot per EDU 1,581.52 square feet per EDU Total Commercial and Indusrial EDUs 423,706 EDUs Total Square Feet (Comm/Ind EDUs X Sq. Ft. per EDU) =1,000 670,099 total square feet per 1,000 NOTES: (1) 2017 Master Plan, Plant 1 Chapter 3, page 3-2,Table 3-2; PWWF Rated Capacity of 310 MGD, net of Sludge Recycle to PCs (7.8 MGD) and GWRS Return to PCs (17.0 MGD). Page 8-21, combined capacity of both plants 660 mgd. (2) 2017 Master Plan, Plant 2 Chapter 4, page 4-7,PWWF Rated Capacity of 317 MGD, (3) 2017 Master Plan, Interplant Facilities Chapter 5, page 5-4,lnterplant Design Criteria 375 MGD Page 8-22, Rated PWWF is Plant 1 at 320 MGD and Plant 2 at 340 MGD. Limited by conveyance by two 90" influent pipes. (4) 2017 Master Plan, Planning Assumptions Chapter 7, page 7-5,Table 7-3; Maximum SAWPA, RA 14, Urban Runoff. SAWPA has the rights to purchase up to 30 mgd, they currently have only purchased 17 mgd. See page 7-16. IRWD, called Revenue Area 14, See page 7-16. (5) 2017 Master Plan, Planning Assumptions Chapter 7, page 7-4, Table 7-2. (6) 2020 https://www.census.gov/quickfacts/orangecountycalifornia is 3.0 pph; Table 7-3 average daily flow of 230 for 2035. (7) 2022 average flow at plant from 2022 rate study data. Page 7 of 11 Orange County Sanitation District - 2022 Exhibit 8 Development of Capital Improvement Plan # Project Type Function Ten Year CIP Total Eligible FLOW BOD TSS FLOW TSS 1 11-33 Edinger Pump Station Replacement Collection $17,198,620 100.0% $17,198,620 90% 10% 0% $15,478,758 $1,719,862 $0 2 11-34 Slater Pump Station Rehabilitation Collection 27,336,055 100.0% 27,336,055 90% 10% 0% 24,602,449 2,733,605 0 3 1-23 Santa Ana Trunk Sewer Rehabilitation Collection 54,479,198 100.0% 54,479,198 90% 10% 0% 49,031,278 5,447,920 0 4 1-24 Greenville Trunk Improvements Collection 48,557,264 100.0% 48,557,264 90% 10% 0% 43,701,538 4,855,726 0 5 2-49 Taft Branch Improvements Collection 22,886,903 100.0% 22,886,903 90% 10% 0% 20,598,213 2,288,690 0 6 2-72B Newhope-Placentia Trunk Replacement, Segment B Collection 1,605,022 100.0% 1,605,022 90% 10% 0% 1,444,520 160,502 0 7 2-73 Yorba Linda Pump Station Removal and Dosing Station Installation Collection 11,266,000 100.0% 11,266,000 90% 10% 0% 10,139,400 1,126,600 0 8 2-78 Santa Ana Canyon South River Trunk Rehabilitation Collection 14,115,683 100.0% 14,115,683 90% 10% 0% 12,704,115 1,411,568 0 9 3-60 Knott- Miller Holder - Artesia Branch Rehabilitation Collection 28,317,000 100.0% 28,317,000 90% 10% 0% 25,485,300 2,831,700 0 10 3-62 Westminster Blvd Force Main Replacement Collection 7,954,815 100.0% 7,954,815 90% 10% 0% 7,159,333 795,481 0 11 3-64B Los Alamitos Trunk Sewer Rehabilitation Collection 15,182,248 100.0% 15,182,248 90% 10% 0% 13,664,023 1,518,225 0 12 3-64C Los Alamitos Sub -Trunk and Westside Relief Interceptor Rehabilitation Collection 56,415,700 100.0% 56,415,700 90% 10% 0% 50,774,130 5,641,570 0 13 3-66 Interstate 405 Widening Project Impacts on OCSD Sewers Collection 71,348 100.0% 71,348 90% 10% 0% 64,213 7,135 0 14 3-67 Seal Beach Pump Station Replacement Collection 79,883,908 100.0% 79,883,908 90% 10% 0% 71,895,517 7,988,391 0 15 3-68 Los Alamitos Sub -Trunk Extension Collection 52,345,584 100.0% 52,345,584 90% 10% 0% 47,111,025 5,234,558 0 16 5-66 Crystal Cove Pump Station Rehabilitation Collection 13,903,000 100.0% 13,903,000 90% 10% 0% 12,512,700 1,390,300 0 17 5-67 Bay Bridge Pump Station Replacement Collection 94,295,270 100.0% 94,295,270 90% 10% 0% 84,865,743 9,429,527 0 18 5-68 Newport Beach Pump Station Pressurization Improvements Collection 2,509,273 100.0% 2,509,273 90% 10% 0% 2,258,346 250,927 0 19 6-20 Fairview Trunk Rehabilitation Collection 19,176,350 100.0% 19,176,350 90% 10% 0% 17,258,715 1,917,635 0 20 7-63 MacArthur Pump Station Rehabilitation Collection 9,329,000 100.0% 9,329,000 90% 10% 0% 8,396,100 932,900 0 21 7-64 Main Street Pump Station Rehabilitation Collection 31,243,000 100.0% 31,243,000 90% 10% 0% 28,118,700 3,124,300 0 22 7-65 Gisler -Red Hill Interceptor and Baker Force Main Rehabilitation Collection 42,451,815 100.0% 42,451,815 90% 10% 0% 38,206,634 4,245,182 0 23 7-66 Sunflower and Red Hill Interceptor Repairs Collection 3,632,720 100.0% 3,632,720 90% 10% 0% 3,269,448 363,272 0 24 7-68 MacArthur Force Main Improvements Collection 6,563,458 100.0% 6,563,458 90% 10% 0% 5,907,112 656,346 0 25 7-69 North Trunk - Yorba Street Sub -Trunk Improvements Collection 10,854,000 100.0% 10,854,000 90% 10% 0% 9,768,600 1,085,400 0 26 Equipment Equipment Purchases Collection 14,800,702 100.0% 14,800,702 90% 10% 0% 13,320,632 1,480,070 0 27 FE10-21 Area 02 Craig Regional Park Manhole Improvements Collection 161,960 100.0% 161,960 90% 10% 0% 145,764 16,196 0 28 FE17-03 Battery Storage System at Plant No. 1 Interplant 1,486 100.0% 1,486 40% 33% 27% 601 491 395 29 FE17-05 Plant 1 ICS Network Extension Interplant 91,844 100.0% 91,844 40% 33% 27% 37,130 30,318 24,396 30 FE18-06 CenGen Instrument Air Compressors Replacement at Plant No. 1 Interplant 886,537 100.0% 886,537 40% 33% 27% 358,403 292,645 235,488 31 FE18-08 West Trunk Bypass Sewer Realignment Collection 0 100.0% 0 90% 10% 0% 0 0 0 32 FE18-11 Headworks Explosive Gas Monitoring Systems at Plant No. 1 and No. 2 Headworks 15,818 100.0% 15,818 75% 5% 20% 11,864 791 3,164 33 FE18-12 Erosion Control at Santa Ana River and Hamilton Ave Collection 51,425 100.0% 51,425 90% 10% 0% 46,283 5,143 0 34 FE18-13 Redhill Relief Sewer Relocation at State Route 55 Collection 2,989,336 100.0% 2,989,336 90% 10% 0% 2,690,402 298,934 0 35 FE18-14 Plant Water Pipeline Replacement in Kinnison, Lindstrom, and Scott Tunnels at Plant No. 2 Interplant 907,384 100.0% 907,384 40% 33% 27% 366,831 299,527 241,026 36 FE18-15 Plant Boiler System Relief at Plant No. 2 Interplant 70,826 100.0% 70,826 40% 33% 27% 28,633 23,380 18,813 37 FE18-16 Truck Loading Basement Drain Modifications at Plant No. 1 Interplant 139,476 100.0% 139,476 40% 33% 27% 56,386 46,041 37,049 38 FE18-19 12KV Distribution B and East RAS Pump Station Roofing Replacement Interplant 82,085 100.0% 82,085 40% 33% 27% 33,185 27,096 21,804 39 FE18-20 DAFT Air Compressors Replacement at Plant No. 1 Interplant 1,097,587 100.0% 1,097,587 40% 33% 27% 443,725 362,313 291,549 40 FE19-01 Pump Station Portable Generator Connectors Collection 2,160,864 100.0% 2,160,864 90% 10% 0% 1,944,778 216,086 0 41 FE19-02 Cengen Plant Water Pipe Replacement at Plant No. 1 Interplant 3,748,373 100.0% 3,748,373 40% 33% 27% 1,515,368 1,237,336 995,670 42 FE19-03 Trickling Filter Sludge and Scum Pumps Replacement at Plant No. 1 Trickling Filters 2,685,144 100.0% 2,685,144 0% 100% 0% 0 2,685,144 0 43 FE19-04 Sunflower Pump Replacement at Plant No. 1 Interplant 3,434,259 100.0% 3,434,259 40% 33% 27% 1,388,379 1,133,647 912,232 44 FE19-06 EPSA Motor Cooling Improvements at Plant No. 2 Interplant 1,074,165 100.0% 1,074,165 40% 33% 27% 434,256 354,581 285,327 45 FE19-08 Secondary Treatment VFD Replacements at Plant No. 2 Secondary Sedimentation 2,662,809 100.0% 2,662,809 0% 70% 30% 0 1,863,966 798,843 46 FE19-10 Digesters C, D, F, G and I Gas Balance Lines Replacement at Plant No. 2 Digestion 2,075,516 100.0% 2,075,516 0% 25% 75% 0 518,879 1,556,637 47 FE19-11 Primary Clarifiers Nos. 6-31 Lighting and Alarm Improvements at Plant No. 1 Secondary Sedimentation 159,588 100.0% 159,588 0% 70% 30% 0 111,711 47,876 48 FE19-12 Rebuild Shop Fume Extractor Installation at Plant No 1 Interplant 435,841 100.0% 435,841 40% 33% 27% 176,199 143,871 115,771 49 FE19-13 VFD Replacements at Seal Beach Pump Station Collection 273,873 100.0% 273,873 90% 10% 0% 246,486 27,387 0 50 FE20-01 Wastehauler Station Safety and Security Improvements Interplant 1,306,337 100.0% 1,306,337 40% 33% 27% 528,118 431,221 346,999 51 FE20-02 Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2 Digestion 3,641,330 100.0% 3,641,330 0% 25% 75% 0 910,332 2,730,997 52 FE20-03 Return Activated Sludge Discharge Piping Replacement at Activated Sludge Plant No. 1 Activated Sludge Process 4,524,089 100.0% 4,524,089 0% 100% 0% 0 4,524,089 0 53 FE20-04 Cengen Cooling Water Pipe Replacement at Plant No. 2 Interplant 4,955,241 100.0% 4,955,241 40% 33% 27% 2,003,272 1,635,722 1,316,246 54 FE20-05 Plant Water Piping Replacement at Secondary Clarifiers 1-26 at Plant No. 1 Secondary Sedimentation 1,448,234 100.0% 1,448,234 0% 70% 30% 0 1,013,764 434,470 55 FE20-06 Thickening and Dewatering Building Pipe Support Improvements at Plant No. 1 Sludge Thickening 1,179,706 100.0% 1,179,706 0% 25% 75% 0 294,927 884,780 56 FE20-07 Santa Ana Trunk Rehabilitation at Plant No. 1 Collection 647,683 100.0% 647,683 90% 10% 0% 582,914 64,768 0 57 FE20-08 Olive Sub -Trunk Siphon Rehabilitation at Santa Ana River Collection 2,640,907 100.0% 2,640,907 90% 10% 0% 2,376,816 264,091 0 58 FE20-09 CenGen Smoke Detection Improvements at Plant No. 1 and No. 2 Interplant 588,228 100.0% 588,228 40% 33% 27% 237,805 194,174 156,249 59 FE20-10 Adolfo Lopez Chemical Dosing Station Installation Interplant 941,753 100.0% 941,753 40% 33% 27% 380,726 310,872 250,155 60 FE21-01 Plasma Cutting Fume Extractor installation at Plant No. 1 Rebuild Shop Interplant 259,757 100.0% 259,757 40% 33% 27% 105,013 85,746 68,999 61 FE21-02 Lighting Improvements Boiler and Sludge Dewatering Areas at Plant No. 1 Sludge Thickening 270,790 100.0% 270,790 0% 25% 75% 0 67,697 203,092 62 FE21-04 Thickening and Dewatering Facility Handrail Installation at Plant No. 1 Sludge Thickening 186,202 100.0% 186,202 0% 25% 75% 0 46,550 139,651 63 FE21-05 Warehouse Stations and Demolition at Plant No. 2 Interplant 2,163,021 100.0% 2,163,021 40% 33% 27% 874,452 714,012 574,557 Page 8 of 11 Orange County Sanitation District - 2022 Exhibit 8 Development of Capital Improvement Plan # Project Type Function Ten Year CIP Total Eligible $ Eligible FLOW BOD TSS FLOW 64 FE21-06 Chemical Dosing Station Installation at Westside Pump Station Interplant 508,441 100.0% 508,441 40% 33% 27% 205,549 167,836 135,056 65 IT16-09 iPACS Enhancements Collection 56,275 100.0% 56,275 90% 10% 0% 50,648 5,628 0 66 IT18-09 Records Management Information System Collection 0 100.0% 0 90% 10% 0% 0 0 0 67 IT19-01 IT Safety VPP Systems (IT19-01) Collection 0 100.0% 0 90% 10% 0% 0 0 0 68 IT19-05 IT PI & P2 Data Refresh (IT19-05) Collection 1,070,000 100.0% 1,070,000 90% 10% 0% 963,000 107,000 0 69 IT20-05 Client Management Modernization (ICE-69_IT20-05) 6520005 Collection 71,603 100.0% 71,603 90% 10% 0% 64,443 7,160 0 70 IT20-06 Nintex Workflow Cloud Implementation (ICE-75_IT20-06) 6520006 Collection 0 100.0% 0 90% 10% 0% 0 0 0 71 IT20-07 Professional Services for Valo/SharePoint (ICE-74_IT20-07) 6520007 Collection 27,835 100.0% 27,835 90% 10% 0% 25,052 2,784 0 72 IT20-08 Field Computer for Nerissa and Interface with LIMS(ICE-68_IT20-07) 6520008 Collection 77,822 100.0% 77,822 90% 10% 0% 70,040 7,782 0 73 IT20-09 ITSM Migration (ICE-70_IT20-09) 6520009 Collection 0 100.0% 0 90% 10% 0% 0 0 0 74 IT20-10 Digitize Quality Assurance Tracking Processes /TNI/ELAP StandardslCE-76_IT20-10) 6520010 Collection 89,317 100.0% 89,317 90% 10% 0% 80,385 8,932 0 75 IT20-12 Web -based Cloud Proxy Security with an Isolation Platform (ICE-78_6520012) Collection 0 100.0% 0 90% 10% 0% 0 0 0 76 IT21-01 Access Network Equipment Obsolescence Replacement (ICE-79_IT21-01) 6521001 Collection 1,009,193 100.0% 1,009,193 90% 10% 0% 908,274 100,919 0 77 IT21-02 Hyper Converged Infrastructure for Plant 1 ICS network (ICE-80 1T21-02) 6521002 Collection 139,321 100.0% 139,321 90% 10% 0% 125,389 13,932 0 78 IT21-03 Door Access Control System for P2 Construction Management Trailers (ICE-83_IT21-036521003 Collection 0 100.0% 0 90% 10% 0% 0 0 0 79 IT21-04 Databridge Scale Management Software (ICE - 84_IT21-04) Collection 35,946 100.0% 35,946 90% 10% 0% 32,351 3,595 0 80 IT21-05 JD Edwards Server Migration and Upgrade (ICE - 86_IT21-05) Collection 68,628 100.0% 68,628 90% 10% 0% 61,765 6,863 0 81 IT21-06 Dig -Smart Fusion (ICE - 89_I6521006_T21-06) Collection 0 100.0% 0 90% 10% 0% 0 0 0 82 IT21-07 Advanced Email Security (ICE - 90_I6521007_T21-07) Collection 0 100.0% 0 90% 10% 0% 0 0 0 83 J-117B Outfall Low Flow Pump Station Effluent Disposal 51,164,677 100.0% 51,164,677 100% 0% 0% 51,164,677 0 0 84 J-120 Process Control Systems Upgrades Interplant 30,790,276 100.0% 30,790,276 40% 33% 27% 12,447,690 10,163,852 8,178,733 85 J-120A Control Room Reconfiguration at Plant No. 1 and Plant No. 2 Interplant 3,765,593 100.0% 3,765,593 40% 33% 27% 1,522,329 1,243,020 1,000,244 86 J-124 Digester Gas Facilities Replacement Digestion 156,948,308 100.0% 156,948,308 0% 25% 75% 0 39,237,077 117,711,231 87 J-127 Natural Gas Pipelines Replacement at Plant Nos. 1 and 2 Interplant 78,826 100.0% 78,826 40% 33% 27% 31,867 26,021 20,938 88 J-128 Project Management Information System Collection 670,937 100.0% 670,937 90% 10% 0% 603,843 67,094 0 89 J-133 Laboratory Rehabilitation/Replacement at Plant No 1 Interplant 100,000,000 100.0% 100,000,000 40% 33% 27% 40,427,342 33,009,942 26,562,716 90 J-135 Central Generation Engine Overhauls at Plant No. 1 and 2 Interplant 14,874,635 100.0% 14,874,635 40% 33% 27% 6,013,420 4,910,109 3,951,107 91 J-135A Central Generation Engine Overhaul at Plant No. 1 Interplant 0 100.0% 0 40% 33% 27% 0 0 0 92 J-135B Engine and Generator Overhauls at Plant No. 1 and 2 Interplant 24,000,000 100.0% 24,000,000 40% 33% 27% 9,702,562 7,922,386 6,375,052 93 J-136 Power Building Structural Seismic Improvements at Plant No. 1 and 2 Interplant 5,364,280 100.0% 5,364,280 40% 33% 27% 2,168,636 1,770,746 1,424,898 94 J-137120-inch Ocean Outfall Rehabilitation Effluent Disposal 64,968,000 100.0% 64,968,000 100% 0% 0% 64,968,000 0 0 95 J-36-2 GWRS Final Expansion Coordination Interplant 272,061 100.0% 272,061 40% 33% 27% 109,987 89,807 72,267 96 J-98 Electrical Power Distribution System Improvements Collection 24,291,686 100.0% 24,291,686 90% 10% 0% 21,862,518 2,429,169 0 97 M-FE Small Construction Projects Program Collection 24,290,374 100.0% 24,290,374 90% 10% 0% 21,861,337 2,429,037 0 98 M-MC-IT Information Technology Capital Program Collection 4,318,329 100.0% 4,318,329 90% 10% 0% 3,886,496 431,833 0 99 M-RESEARCH Research Program Collection 2,089,746 100.0% 2,089,746 90% 10% 0% 1,880,772 208,975 0 100 M-SM-CAP Operations & Maintenance Capital Program Collection 10,303,912 100.0% 10,303,912 90% 10% 0% 9,273,520 1,030,391 0 101 M-STUDIES Planning Studies Program Collection 14,847,718 100.0% 14,847,718 90% 10% 0% 13,362,946 1,484,772 0 102 P1-101 Sludge Dewatering and Odor Control at Plant 1 Sludge Thickening 0 100.0% 0 0% 25% 75% 0 0 0 103 P1-105 Headworks Rehabilitation at Plant 1 Headworks 260,827,359 100.0% 260,827,359 75% 5% 20% 195,620,519 13,041,368 52,165,472 104 P1-126 Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1 Primary Sedimentation 168,628,090 100.0% 168,628,090 0% 30% 70% 0 50,588,427 118,039,663 105 P1-127 Central Generation Rehabilitation at Plant No. 1 Interplant 21,884,242 100.0% 21,884,242 40% 33% 27% 8,847,217 7,223,976 5,813,049 106 P1-128A Headquarters Complex at Plant No. 1 Interplant 85,125,871 100.0% 85,125,871 40% 33% 27% 34,414,127 28,100,001 22,611,743 107 P1-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1 Activated Sludge Process 0 100.0% 0 0% 100% 0% 0 0 0 108 P1-132 Uninterruptable Power Supply Improvements at Plant 1 Interplant 5,605,952 100.0% 5,605,952 40% 33% 27% 2,266,337 1,850,521 1,489,093 109 P1-133 Primary Sedimentation Basins No.6-31 Reliability Improvements at Plant No. 1 Primary Sedimentation 11,479,256 100.0% 11,479,256 0% 30% 70% 0 3,443,777 8,035,479 110 P1-134 South Perimeter Security and Utility Improvements at Plant No.1 Interplant 4,134,215 100.0% 4,134,215 40% 33% 27% 1,671,353 1,364,702 1,098,160 111 P1-135 Digester Ferric Chloride Piping Replacement at Plant No. 1 Digestion 215,671 100.0% 215,671 0% 25% 75% 0 53,918 161,753 112 P1-136 12.47 kV Switchgear Replacement at Central Generation at Plant No. 1 Interplant 12,958,000 100.0% 12,958,000 40% 33% 27% 5,238,575 4,277,428 3,441,997 113 P1-137 Supports Buildings Seismic Improvements at Plant No. 1 Interplant 23,643,235 100.0% 23,643,235 40% 33% 27% 9,558,331 7,804,618 6,280,285 114 P1-138 Industrial Control System and IT Data Center Relocation at Plant No. 1 Interplant 5,700,000 100.0% 5,700,000 40% 33% 27% 2,304,358 1,881,567 1,514,075 115 P1-140 Activated Sludge-1 and Secondary Clarifier Rehabilitation Activated Sludge Process 261,152,452 100.0% 261,152,452 0% 100% 0% 0 261,152,452 0 116 P1-141 Administrative Facilities and Power Building 3A Demolition Collection 8,910,000 100.0% 8,910,000 90% 10% 0% 8,019,000 891,000 0 117 P2-119 Central Generation Rehabilitation at Plant No. 2 Interplant 36,690,396 100.0% 36,690,396 40% 33% 27% 14,832,952 12,111,479 9,745,966 118 P2-122 Headworks Modifications at Plant No. 2 for GWRS Final Expansion Headworks 5,895,763 100.0% 5,895,763 75% 5% 20% 4,421,822 294,788 1,179,153 119 P2-123 Return Activated Sludge Piping Replacement at Plant 2 Activated Sludge Process 1,330,642 100.0% 1,330,642 0% 100% 0% 0 1,330,642 0 120 P2-124 Interim Food Waste Receiving Facility Collection 4,948,534 100.0% 4,948,534 90% 10% 0% 4,453,681 494,853 0 121 P2-127 Collections Yard Relocation Collection 1,843,092 100.0% 1,843,092 90% 10% 0% 1,658,782 184,309 0 122 P2-128 TPAD Digester Facility at Plant No.2 Digestion 376,282,135 100.0% 376,282,135 0% 25% 75% 0 94,070,534 282,211,601 123 P2-128ATPAD Perimeter Wall Interplant 53,200,000 100.0% 53,200,000 40% 33% 27% 21,507,346 17,561,289 14,131,365 124 P2-129 Digester P, Q, R, and S Replacement Digestion 59,400,030 100.0% 59,400,030 0% 25% 75% 0 14,850,007 44,550,022 125 P2-133 B/C-Side Primary Sedimentation Basins Rehabilitation at Plant No. 2 Primary Sedimentation 15,839,853 100.0% 15,839,853 0% 30% 70% 0 4,751,956 11,087,897 126 P2-135 Sodium Bisulfite Station Rehabilitation at Plant No. 2 Interplant 4,959,808 100.0% 4,959,808 40% 33% 27% 2,005,118 1,637,230 1,317,460 Page 9 of 11 Orange County Sanitation District - 2022 Exhibit 8 Development of Capital Improvement Plan Project Type Function Ten Year CIP Total Eligible M FLOW BOD TSS FLOW 127 P2-136 Activated Sludge Aeration Basin Rehabilitation at Plant No. 2 Activated Sludge Process 65,538,625 100.0% 65,538,625 0% 100% 0% 0 65,538,625 0 128 P2-137 Digesters Rehabilitation at Plant No. 2 Digestion 40,374,156 100.0% 40,374,156 0% 25% 75% 0 10,093,539 30,280,617 129 P2-138 Operations and Maintenance Complex at Plant No. 2 Collection 83,798,943 100.0% 83,798,943 90% 10% 0% 75,419,049 8,379,894 0 130 P2-139 Emergency Overflow Wingwalls Rehabilitation at Plant No. 2 Interplant 4,370,000 100.0% 4,370,000 40% 33% 27% 1,766,675 1,442,534 1,160,791 131 P2-140 Truck Loading Bay Odor Control Improvements at Plant No. 2 Interplant 7,600,000 100.0% 7,600,000 40% 33% 27% 3,072,478 2,508,756 2,018,766 132 P2-98A A -Side Primary Clarifiers Replacement at Plant 2 Primary Sedimentation 133,766,315 100.0% 133,766,315 0% 30% 70% 0 40,129,895 93,636,421 133 P2-988 B/C-Side Primary Clarifiers Interim Repair at Plant 2 Primary Sedimentation 0 100.0% 0 0% 30% 70% 0 0 0 134 PS17-03 Active Fault Location Study at Plant No. 2 Interplant 0 100.0% 0 40% 33% 27% 0 0 0 135 PS18-06 Go/No-Go Lights and Signage Collection 99,262 100.0% 99,262 90% 10% 0% 89,336 9,926 0 136 PS18-09 Ocean Outfall Condition Assessment and Scoping Study Effluent Disposal 55,300 100.0% 55,300 100% 0% 0% 55,300 0 0 137 PS19-03 Laboratory Rehabilitation Feasibility Study Collection 12,593 100.0% 12,593 90% 10% 0% 11,333 1,259 0 138 PS20-01 Collections Yard Relocation Feasibility Study Collection 69,513 100.0% 69,513 90% 10% 0% 62,562 6,951 0 139 PS20-02 Collection System Flow Level Monitoring Study Collection 620,246 100.0% 620,246 90% 10% 0% 558,222 62,025 0 140 PS20-03 Truck Loading Bay Odor Control Improvements Study at Plant No. 2 Interplant 160,469 100.0% 160,469 40% 33% 27% 64,873 52,971 42,625 141 PS20-04 Power Generation Overhaul Feasibility Study Interplant 0 100.0% 0 40% 33% 27% 0 0 0 142 PS20-05 Can Gen Pressure Vessel Integrity Assessment at Plant Nos. land 2 Interplant 233,863 100.0% 233,863 40% 33% 27% 94,545 77,198 62,120 143 PS20-07 College Pump Station Wet Well Condition Assessment Study Collection 67,425 100.0% 67,425 90% 10% 0% 60,682 6,742 0 144 PS20-08 Euclid Trunk Sewer Hydraulic Modeling and Odor Control Analyses Collection 205,952 100.0% 205,952 90% 10% 0% 185,357 20,595 0 145 PS20-09 Thickening & Dewatering Plant Water Study at Plant No. 1 Sludge Thickening 328,511 100.0% 328,511 0% 25% 75% 0 82,128 246,383 146 PS21-01 Exterior Lighting Study at Plant Nos. 1 and 2 Interplant 523,744 100.0% 523,744 40% 33% 27% 211,736 172,887 139,121 147 PS21-02 Public Announcement and Fire System at Plant Nos. 1 and 2 Interplant 458,614 100.0% 458,614 40% 33% 27% 185,405 151,388 121,820 148 PS21-03 Process Model for Denitrification Alternatives at Activated Sludge 1 Activated Sludge Process 9,698 100.0% 9,698 0% 100% 0% 0 9,698 0 149 PS21-04 Energy and Digester Gas Master Plan Interplant 1,068,462 100.0% 1,068,462 40% 33% 27% 431,951 352,699 283,812 150 PS21-05 CAD Design Manual Update for 3D Design Collection 678,763 100.0% 678,763 90% 10% 0% 610,887 67,876 0 151 PS21-06 Regional Urban Runoff Optimization Study Collection 968,330 100.0% 968,330 90% 10% 0% 871,497 96,833 0 152 RE19-01 Primary Scum Equipment Evaluation at Plant No. 1 Sludge Thickening 15,405 100.0% 15,405 0% 25% 75% 0 3,851 11,553 153 RE20-01 Co -Thickened Sludge Density Meter Trial atl Plant No. 1 Sludge Thickening 1,931 100.0% 1,931 0% 25% 75% 0 483 1,449 154 RE20-02 Chemical Resilience Study at Plant No.l and 2 Interplant 22,396 100.0% 22,396 40% 33% 27% 9,054 7,393 5,949 155 RE20-04 Holding Digester 6 Solids Shredder Study at Plant No. 1 Digestion 17,649 100.0% 17,649 0% 25% 75% 0 4,412 13,237 156 RE20-06 Co -Thickened Sludge Pump Trial at Plant No. 1 Sludge Thickening 15,000 100.0% 15,000 0% 25% 75% 0 3,750 11,250 157 RE21-01 Supercritical Water Oxidation Demonstration at Plant No. 1 Interplant 6,873,109 100.0% 6,873,109 40% 33% 27% 2,778,615 2,268,809 1,825,684 158 SC18-05 P1 Laboratory HVAC Boiler Burner Replacement At Plant No.l Interplant 0 100.0% 0 40% 33% 27% 0 0 0 159 SC19-03 Return Activated Sludge Pump Station Elevator Rehabilitation at Plant No. 2 Activated Sludge Process 362,992 100.0% 362,992 0% 100% 0% 0 362,992 0 160 SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2 Interplant 3,427,847 100.0% 3,427,847 40% 33% 27% 1,385,787 1,131,530 910,529 161 SC20-02 Ocean Outfall Booster Station Elevator Rehabilitation Effluent Disposal 381,819 100.0% 381,819 100% 0% 0% 381,819 0 0 162 SP-100 EAM Software and Process Implementation Collection 2,544,488 100.0% 2,544,488 90% 10% 0% 2,290,039 254,449 0 163 SP-195 Capital Improvement Program Management Services Collection 324,865 100.0% 324,865 90% 10% 0% 292,379 32,487 0 164 X-006 Waste Sidestream Pump Station Rehabilitation at Plant No. 1 Interplant 17,287,000 100.0% 17,287,000 40% 33% 27% 6,988,675 5,706,429 4,591,897 165 X-007 Waste Sidestream Pump Station 2A Upgrade at Plant No. 2 Interplant 9,690,000 100.0% 9,690,000 40% 33% 27% 3,917,409 3,198,663 2,573,927 166 X-014 Trickling Filter Solids Contact Basins Odor Control at Plant No. 2 Trickling Filters 117,817 100.0% 117,817 0% 100% 0% 0 117,817 0 167 X-015 Trickling Filters Rehabilitation at Plant No. 1 Trickling Filters 5,816,795 100.0% 5,816,795 0% 100% 0% 0 5,816,795 0 168 X-017 Primary Sedimentation Basins No.6-31 Rehabilitation at Plant No. 1 Primary Sedimentation 0 100.0% 0 0% 30% 70% 0 0 0 169 X-018 Activated Sludge- 2 Rehabilitation at Plant No. 1 Activated Sludge Process 0 100.0% 0 0% 100% 0% 0 0 0 170 X-022 15th Street Pump Station and Force Main Rehabilitation Collection 0 100.0% 0 90% 10% 0% 0 0 0 171 X-023 Lido Pump Station Rehabilitation Collection 9,847,291 100.0% 9,847,291 90% 10% 0% 8,862,562 984,729 0 172 X-024 Rocky Point Pump Station Rehabilitation Collection 82,553 100.0% 82,553 90% 10% 0% 74,298 8,255 0 173 X-025 Bitter Point Pump Station Rehabilitation Collection 365,469 100.0% 365,469 90% 10% 0% 328,922 36,547 0 174 X-030 Headworks Rehabilitation at Plant 2 Headworks 5,275,748 100.0% 5,275,748 75% 5% 20% 3,956,811 263,787 1,055,150 175 X-031 Trickling Filter Solids Contact Facility Rehabilitation at Plant No. 2 Trickling Filters 0 100.0% 0 0% 100% 0% 0 0 0 176 X-036 City Water Pump Station Rehabilitation at Plant No. 2 Interplant 13,440,000 100.0% 13,440,000 40% 33% 27% 5,433,435 4,436,536 3,570,029 177 X-037 Plant Water Pump Station and 12 KV Distribution Center A Demolition at Plant No. 2 Interplant 3,509,000 100.0% 3,509,000 40% 33% 27% 1,418,595 1,158,319 932,086 178 X-038 City Water Pump Station Rehabilitation at Plant No. 1 Interplant 7,291,736 100.0% 7,291,736 40% 33% 27% 2,947,855 2,406,998 1,936,883 179 X-039 Plant Water Pump Station Rehabilitation at Plant No. 1 Interplant 10,561,000 100.0% 10,561,000 40% 33% 27% 4,269,532 3,486,180 2,805,288 180 X-040 College Pump Station Replacement and Force Main Rehabilitation Collection 1,424,214 100.0% 1,424,214 90% 10% 0% 1,281,792 142,421 0 181 X-041 A Street Pump Station and Force Main Rehabilitation Collection 0 100.0% 0 90% 10% 0% 0 0 0 182 X-044 Steve Anderson Lift Station Rehabilitation Collection 0 100.0% 0 90% 10% 0% 0 0 0 183 X-052 Activated Sludge RAS/WAS/PEPS/Vaporizers Rehabilitation at Plant No. 2 Activated Sludge Process 33,735,521 100.0% 33,735,521 0% 100% 0% 0 33,735,521 0 184 X-059 Plantwide Miscellaneous Tunnels Rehabilitation Interplant 29,350,713 100.0% 29,350,713 40% 33% 27% 11,865,713 9,688,653 7,796,347 185 X-061 Imperial Relief Interceptor / Miller Holder Trunk Rehabilitation Collection 0 100.0% 0 90% 10% 0% 0 0 0 186 X-065 Tustin -Orange Interceptor Rehabilitation Collection 0 100.0% 0 90% 10% 0% 0 0 0 187 X-066 Tustin -Orange Interceptor / Orange Park Acres Trunk Rehabilitation Collection 935,465 100.0% 935,465 90% 10% 0% 841,918 93,546 0 188 X-068 North Trunk - Panorama Heights -Tustin-Orange Rehabilitation Collection 9,624,000 100.0% 9,624,000 90% 10% 0% 8,661,600 962,400 0 189 X-071 Bolsa Chica / Edinger / Springdale Trunk Sewer Rehabilitation Collection 16,973,000 100.0% 16,973,000 90% 10% 0% 15,275,700 1,697,300 0 Page 10 of 11 Orange County Sanitation District - 2022 Exhibit 8 Development of Capital Improvement Plan # Project Type Function Ten Year CIP Total Eligible $ Eligible FLOW % BOD TSS FLOW IN ROD TSS 190 X-078 Air Jumpers Additions/Rehabilitations Collection 13,815,651 100.0% 13,815,651 90% 10% 0% 12,434,086 1,381,565 0 191 X-084 Tustin Avenue Sewer Improvements Collection 212,056 100.0% 212,056 90% 10% 0% 190,850 21,206 0 192 X-085 Hoover -Western Sub -Trunk and Lampson Branch Improvements Collection 23,846,588 100.0% 23,846,588 90% 10% 0% 21,461,929 2,384,659 0 193 X-086 Santa Ana River Interceptor Improvements Collection 0 100.0% 0 90% 10% 0% 0 0 0 194 X-095 Southern California Edison Substation and Service Center Replacement at Plant 2 Collection 5,441,800 100.0% 5,441,800 90% 10% 0% 4,897,620 544,180 0 195 X-096 Bushard Diversion Structure Improvements Headworks 4,722,000 100.0% 4,722,000 75% 5% 20% 3,541,500 236,100 944,400 196 X-098 Effluent Pump Station Annex Rehabilitation Effluent Disposal 4,485,679 100.0% 4,485,679 100% 0% 0% 4,485,679 0 0 197 X-100 Flood Wall along Brookhurst Street Collection 5,748,938 100.0% 5,748,938 90% 10% 0% 5,174,044 574,894 0 198 X-102 Wastehauler Facility Improvements Interplant 1,304,362 100.0% 1,304,362 40% 33% 27% 527,319 430,569 346,474 199 X-104 Central Generation Facilities and Power Bldg. 2 Seismic Upgrades Interplant 28,214,000 100.0% 28,214,000 40% 33% 27% 11,406,170 9,313,425 7,494,405 200 X-105 COBS Seismic Improvements at Plant No. 2 Interplant 24,913,000 100.0% 24,913,000 40% 33% 27% 10,071,664 8,223,767 6,617,569 201 X-107 DAFfs Seismic Improvements at Plant No. 2 Interplant 389,911 100.0% 389,911 40% 33% 27% 157,631 128,709 103,571 202 X-108 Lateral Spreading Mitigation at Plant No. 2 Interplant 0 100.0% 0 40% 33% 27% 0 0 0 203 X-109 Lateral Spreading Mitigation at Plant No. 1 Interplant 0 100.0% 0 40% 33% 27% 0 0 0 204 X-110 Solids Processing Facilities Seismic Improvements at Plant No. 1 Solids Handling 657,144 100.0% 657,144 0% 25% 75% 0 164,286 492,858 205 X-112 Southwest Corner Stormwater Drainage Modifications at Plant No. 1 Collection 855,832 100.0% 855,832 90% 10% 0% 770,249 85,583 0 206 X-114 Activated Sludge Facility Replacement at Plant No. 2 Activated Sludge Process 0 100.0% 0 0% 100% 0% 0 0 0 207 X-115 Short Outfall Rehabilitation at Plant No. 2 Effluent Disposal 5,712,326 100.0% 5,712,326 100% 0% 0% 5,712,326 0 0 208 X-116 Outfall Land Section Rehabilitation at Plant No. 2 Effluent Disposal 0 100.0% 0 100% 0% 0% 0 0 0 209 X-118 84-inch Interplant Pipeline Rehabilitation at Plant 1 Interplant 0 100.0% 0 40% 33% 27% 0 0 0 210 X-119 Thickening, Dewatering and Truck Loadout Rehabilitation at Plant 1 Sludge Thickening 0 100.0% 0 0% 25% 75% 0 0 0 211 X-120 Digester Rehabiliation/Replacement at Plant 1 Digestion 0 100.0% 0 0% 25% 75% 0 0 0 212 X-121 Lido Pump Station Replacement Collection 0 100.0% 0 90% 10% 0% 0 0 0 213 X-122 MacArthur Pump Station Replacement Project Collection 0 100.0% 0 90% 10% 0% 0 0 0 214 X-124 Electric Vehicle Fleet Services Building Collection 12,481,000 100.0% 12,481,000 90% 10% 0% 11,232,900 1,248,100 0 215 X-125 66-inch Interplant Pipeline Rehabilitation at Plant 1 Interplant 6,841,000 100.0% 6,841,000 40% 33% 27% 2,765,635 2,258,210 1,817,155 216 X-126 Lake Ave and Atlanta Int Rehabilitation Collection 8,959,000 100.0% 8,959,000 90% 10% 0% 8,063,100 895,900 0 217 X2-72 Continegncy Reserve for 2-72 Collection 10,000,000 100.0% 10,000,000 90% 10% 0% 9,000,000 1,000,000 0 218 X2-79 Fullerton -Brea Int and Rollings Hills Or Subtrunk Rehabilitation Collection 13,300,000 100.0% 13,300,000 90% 10% 0% 11,970,000 1,330,000 0 219 XP2-130 Food Waste Receiving Facility at Plant No. 2 Interplant 0 100.0% 0 40% 33% 27% 0 0 0 220 XP2-131 Digester I, J, and K Replacement at Plant No. 2 Digestion 8,779,838 100.0% 8,779,838 0% 25% 75% 0 2,194,959 6,584,878 221 XP2-132 Digester Demolition at Plant No. 2 Digestion 0 100.0% 0 0% 25% 75% 0 0 0 Actual Collection 203,320,511 100.0% 203,320,511 $3,617,505,992 90% 10% 0% 182,988,460 $1,689,310,256 20,332,051 $984,761,980 0 $943,433,755 Total $3,617,505,992 CATEGORY Ten Year CIP Total $ Eligible Collection $1,221,084,006 $1,221,084,006 Interplant 633,270,255 633,270,255 Headworks 276,736,688 276,736,688 Primary Sedimentation 329,713,515 329,713,515 Activated Sludge Process 366,654,019 366,654,019 Oxygen Activated Sludge Process 0 0 Blower Equipment and Structures 0 0 Aeration Equipment and Structures 0 0 Trickling Filters 8,619,756 8,619,756 Secondary Sedimentation 4,270,630 4,270,630 Sludge Thickening 1,997,545 1,997,545 Digestion 647,734,632 647,734,632 Solids Handling 657,144 657,144 Solids Disposal 0 0 Effluent Disposal 126,767,802 126,767,802 Unallocated 0 0 As All Others 0 0 TOTAL $3,617,505,992 $3,617,505,992 FLOW BOD TSS $1,098,975,606 $122,108,401 $0 256,014,334 209,042,144 168,213,778 207,552,516 13,836,834 55,347,338 0 98,914,054 230,799,460 0 366,654,019 0 0 0 0 0 0 0 0 0 0 0 8,619,756 0 0 2,989,441 1,281,189 0 499,386 1,498,159 0 161,933,658 485,800,974 0 164,286 492,858 0 0 0 126,767,802 0 0 0 0 0 0 0 0 $1,689,310,256 $984,761,980 $943,433,755 Page 11 of 11 12/6/2022 ■ • Rate assumptions are included annually with each adopted budget • Each budget includes a ten-year cashflow estimate • Capital Improvement Program (CIP) Master Plan was last completed in 2017 12/6/2022 1 • Staff engaged a qualified independent consulting firm, HDR Engineering, to conduct a comprehensive cost of service rate study to validate financial assumptions. • HDR performed the revenue analysis to develop cost based Regional Sewer Service Fees, Capacity Charges and ancillary charges as well as cost allocation amongst customer classes. • HDR also evaluated the current rebate program and recommended changes for better efficiency and to simplify the process for both the customer and OC San. 3 Majority of OC San Revenue comes from the General User Fees 1) General User Fees $ 356.5 M 69.2% 2) Property Taxes $ 109.8 M 21.3% 3) Interest/Assessments $ 18.0 M 3.5% 4) Other Fees/Charges $ 31.1 M 6.0% Total Fees & Charges $ 515.4 M 100.0% M 2 12/6/2022 Los Angeles County $226 Fresno $309 Oro Loma $342 OC San $347 IRWD $357 Sacramento $444 Hayward $463 East Bay MUD $475 Dublin San Ramon $496 Union Sanitary $530 City of Los Angeles $636 City of San Diego $687 Central Contra Costa $690 Vallejo $769 San Francixo $1,270 200 400 600 800 1,000 1,200 1,400 5 5 General User Fees 9', of total revenue) Staff recommends on average 3.5% annual increases 2022 (Current) $351 $347 $347 2023 $359 $358 $358 2024 $367 $370 $371 2025 $373 $382 $384 2026 $379 $395 $397 2027 $385 $408 $411 6 3 12/6/2022 Industrial User O&M Fee High Strength Dischargers Represents $12.5M (2.4% of total revenue) • Staff recommends annual increases of 4.7%-5.6% over a five-year period for high strength dischargers. CFCC One -Time Connection Charge Represents $12.9M (2.5% of total revenue) Residential Capacity Charges will remain flat for 2023-24 and increase annually by the Engineering News Record (ENR) Construction Cost Index. Non-residential Capacity Charges will decrease by approximately 33% in 2023-24 and then increase annually by the ENR Construction Cost Index. M 12/6/2022 SCFCC Annual charge for exceeding established baselines Represents $4.3M (.8% of total revenue) • The SCFCC is charged to high strength industrial users who exceed standard discharge amounts. • Currently, there are 45 industrial dischargers who are charged the SCFCC for one or more constituents. • These users would see increases on average of 6.3%. 0] • OC San processes over 2000 rebate/refund requests annually with an additional 1200 customers locked into a reduced charge. • Staff and our consultant evaluated our current rebate program • Staff recommends redesigning the program and modeling it after LA County Sanitation Districts tiered rebate program and moving from a 3-year lock -in to a 5-year lock -in to better serve our customers: Average Flow divided Customer by Assumed Discharge Reduction 90% or Greater 0% 70% - 89% 20% 50% - 69% 30% 30% - 49% 60% 29% or less 80% 10 5 12/6/2022 1) November Steering Committee — Rate Plan Overview 2) December Operations Committee — Rate Plan Overview 3) December Admin Committee — Rate Study and Prop. 218 Notices 4) December Board — Rate Study and Prop. 218 Notices 5) February 2023 — Mail Prop. 218 Notices 6) February Board — First Reading of the Ordinances 7) March Board — Public Hearing, Second Reading and Adoption 8) July 1, 2023 — New rate schedules go into effect 11 12 0 Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2412 Agenda Date: 12/14/2022 Agenda Item No: 9. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSITION 218 NOTIFICATIONS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Direct staff to prepare and mail Proposition 218 compliant notifications to affected property owners outlining a five-year regional sewer service fee schedule with annual increases of approximately 3.5 percent for fiscal years 2023-24 through 2027-28; and B. Authorize the General Manager to select a service provider for preparing, printing, and mailing the Proposition 218 compliant notifications and execute a Purchase Order for an amount not to exceed $370,000. BACKGROUND The Orange County Sanitation District's (OC San) current five-year sewer fee rate schedule expires at the end of the current fiscal year. OC San engaged HDR Engineering, Inc, an engineering consulting firm, to provide an independent analysis of OC San's cash flow modeling and a comprehensive cost of service study to ensure the appropriate allocation of costs and fees. This study has been completed and presented to the Administration Committee at this meeting as a separate agenda item. Based on this information, the Facilities Master Plan, forecasted operating expenses, and cash flow modeling, staff recommends annual increases on average of 3.5%. It is anticipated that this increase will be less than average inflation rates and will support OC San's programs while maintaining appropriate reserves levels. RELEVANT STANDARDS • Stable rates based on a validated cost structure which minimizes unforeseen rate increases. PROBLEM Proposition 218 requires that OC San notify the affected property owners within OC San's service area of proposed rate increases and to conduct a public hearing that coincides with the second reading of the ordinance. Notices must be mailed to property owners 45 days prior to the public hearing. Orange County Sanitation District Page 1 of 3 Printed on 12/6/2022 powered by LegistarTIM File #: 2022-2412 PROPOSED SOLUTION Agenda Date: 12/14/2022 Agenda Item No: 9. With Board approval, a notice of rate changes will be mailed to every affected property owner within OC San's service area. These rates will be scheduled for adoption through the ordinance process that requires a public hearing, two Board meetings, and a 2/3 majority approval of the Board. The estimated cost of mailing will not exceed $370,000 for approximately 500,000 notifications. TIMING CONCERNS Rate approval schedule: • December 2022: Administration & Operations Committees - Rate Structure presentation • December 2022: Board Meeting - Approval of Proposition 218 Notices • February 2023: Proposition 218 45-day notices mailed for Sanitary Sewer Fees • February 2023: Board Meeting - 1 st Reading of the Ordinance • March 2023: Board Meeting - 2nd Reading of the Ordinance, Public Hearing & Adoption • July 1, 2023: New rates go into effect Due to the critical, time -sensitive nature of this procurement, staff recommends proceeding with procurement per Section 1.07.B of OC San's Purchasing Ordinance, and that the Board of Directors delegate to the General Manager the authority to execute a Purchase Order with a service provider to prepare, print, and mail the notices. RAMIFICATIONS OF NOT TAKING ACTION Existing sewer service fees will be insufficient to support OC San's operating expenses and new facilities included in the Facilities Master Plan. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Proposed Annual Single Family Residential Fee Schedule: Current $347 FY 2023-24 $358 FY 2024-25 $371 FY 2025-26 $384 FY 2026-27 $397 FY 2027-28 $411 CEQA N/A Orange County Sanitation District Page 2 of 3 Printed on 12/6/2022 powered by LegistarTM File #: 2022-2412 FINANCIAL CONSIDERATIONS Agenda Date: 12/14/2022 Agenda Item No: 9. This request complies with authority levels of OC San's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A Orange County Sanitation District Page 3 of 3 Printed on 12/6/2022 powered by LegistarT" Administration Building ADMINISTRATION COMMITTEE 10844 Ellis Avenue SAIV Fountain Valley, CA 92708 (714) 593 7433 ORANGE COUNTY SANITATION DISTRICT Agenda Report File #: 2022-2657 Agenda Date: 12/14/2022 Agenda Item No: 10. FROM: James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: DENALI WATER SOLUTIONS, LLC BIOSOLIDS HAULING SERVICES - SPECIFICATION NO. S- 2020-1208BD - CONTINGENCY INCREASE GENERAL MANAGER'S RECOMMENDATION IV:1ito] 1TAIf•1a101�7_r1[67,1■: - • i 0USX1i3.10 01 ona9 - re= on Approve an additional 10% unit price per ton contingency (for a total of 20% unit price per ton contingency) for Denali Water Solutions, LLC Biosolids Hauling Services Specification No. S-2020- 1208BD contract renewal to collect and haul Orange County Sanitation District's biosolids to the Inland Empire Regional Composting Facility and alternative sites for the period between January 1, 2023 through December 31, 2023. 1 :(r]:19111ZI III] In early November, Denali Water Solutions, LLC submitted a request for a unit price increase above the originally approved 10% unit price per ton contingency for the Biosolids Hauling Services Specification No. S-2020-1208BD contract renewal to Orange County Sanitation District's (OC San) purchasing division via email communication. OC San staff responded with multiple requests for justification and a reduction in the proposed unit price. As of 11/29/2022, Denali proffered a best and final 20% unit price per ton contingency, which will result in an additional cost of $3.09 per ton of biosolids. Denali's justification for increasing the unit price per hauling each ton of biosolids from $15.45 to $18.54 includes: increases in labor/driver costs (18.5% since September 2021), increases in vehicle maintenance costs (parts and labor), and fuel costs above the original fuel surcharge. In combination with the tipping fee at IERCF, the overall cost will change from $76.45 to $79.54 per wet ton of biosolids, plus fuel surcharge. The Inland Empire Regional Composting Facility (IERCF) is one of two local options utilized by OC San. At this time, Denali is the sole hauler under contract for transporting biosolids from OC San to IERCF. OC San is actively developing additional hauling options to IERCF and will continue to review and adjust its biosolids allocations to contractor facilities to optimize cost-effectiveness, diversification of biosolids disposal/reuse portfolio, resiliency, and price stability. Orange County Sanitation District Page 1 of 3 Printed on 12/6/2022 powered by LegistarTIM File #: 2022-2657 Agenda Date: 12/14/2022 Agenda Item No: 10. RELEVANT STANDARDS • Maintain and adhere to appropriate internal planning documents (Biosolids Master Plan) • Safe, beneficial reuse of Biosolids • Comply with environmental permit requirements PROBLEM The Denali contract is up for its first one-year renewal, and a unit price that is above the approved annual contingency amount due has been requested. Denali is currently the only hauler under contract with OC San to transport biosolids to IERCF. PROPOSED SOLUTION Staff recommends the Board of Directors approve the one-year renewal with Denali with the contingency increase to maintain biosolids management diversity and sustainability. TIMING CONCERNS The current contract expires on December 31, 2022. Board approval is needed prior to expiration due to the significant cost increase above the Board's previously approved 10% contingency. RAMIFICATIONS OF NOT TAKING ACTION If the contingency increase is not approved, OC San will not be able to deliver biosolids to IERCF until a new hauler is obtained. OC San would temporarily lose one of its two local biosolids management options. aNIf] :V191iyiI►yi111i944l 0110I7_TOIIf] z&i March 2021 - Approved a Service Contract to Denali Water Solutions, LLC to collect and haul Orange County Sanitation District's biosolids from Reclamation Plant No. 1 and/or Treatment Plant No. 2 to the Inland Empire Regional Composting Facility and alternative sites if needed for the period beginning May 12, 2021 through December 21, 2022, for the unit price of $15.45 per ton of biosolids, plus fuel surcharges, for a total amount not to exceed $600,000 per contract term, with four (4) one- year renewal options; and approved a 10% unit price per ton contingency. ADDITIONAL INFORMATION N/A CEQA N/A Orange County Sanitation District Page 2 of 3 Printed on 12/6/2022 powered by LegistarTM File #: 2022-2657 FINANCIAL CONSIDERATIONS Agenda Date: 12/14/2022 Agenda Item No: 10. This request complies with the authority levels of OC San's Purchasing Ordinance. This item has been budgeted and the additional contingency is available in: (Line item: Section 5, Page 5). ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Presentation Orange County Sanitation District Page 3 of 3 Printed on 12/6/2022 powered by LegistarT" 12/6/2022 Biosolids Portfolio Orange County Sanitation District — Biosolids Management Biosolids Allocations by Destination $61.291 Allocation: 41 % (Compost) Liberty Compost t ----!7 215 tons/day, 60 trucksPweek - "-�_._._._._. .__._.__ _.__.__._.—._._._.—._.__—_._._.—._.__.. CA Prior. 79 tonwday, 19 trucks/week M $61.21 Allocation: Suspended (Compost) AZ Synagro - Nursery Products Kem County 0 tons/day, 0 truckslweek Prior: 138 tons/day, 33 trucks/week $6o.27/WT 1 Allocation:9% (Compost) Synagro -- South Kem Los Angeles Current $76.45 47 tons/day, 13 trucks/week County ees Proposed: $79.54ANf $71.57/WT Allocation: 6 % (Compost) Allocation: 3% (Compost) IERCA--Inland Empire Counry Synagro - AZ Soils 30 tons/day, 8 trucka/week 17 tons/day, 5 trucks/week OC San Fail-safe Back-up ;an Diego Landfill County Yuma $57NVT OCWR - Prima Deshecha County Allocation: 35%(Feed and Seed Crops) Tule Ranch - AgTech 189 tons/day, 53 trucks/week $94Mff Allocation: 6%(Pellets and Biochar) Anaergia --Rialto B'oenergy Facility 30 tons/day, 8 trucks/week Fail safe Backup awoat: �_ Allocation: As -needed (Landfill and Lime stabilization) 526 Toro cer day I.I. Ranch - AgTech 148Truckaper week SClredrM FFeclive 1TH621 Revised' 2 e/302022 1 12/6/2022 Recommend to the Board of Directors to: Approve an additional 10% unit price per ton contingency (for a total of 20% unit price per ton contingency) for Denali Water Solutions, LLC Biosolids Hauling Services Specification No. S-2020- 1208BD contract renewal to collect and haul Orange County Sanitation District's biosolids to the Inland Empire Regional Composting Facility and alternative sites for the period between January 1, 2023 through December 31, 2023. 3 2 ACWA APWA AQMD ASCE BOD CARB CASA ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS Association of California LOS Water Agencies American Public Works MGD Association Air Quality Management District MOU American Society of Civil NACWA Engineers Biochemical Oxygen Demand NEPA California Air Resources Board NGOs California Association of Sanitation Agencies NPDES CCTV Closed Circuit Television I NWRI California Environmental CEQA Quality Act O & M Capital Improvement CIP Program OCCOG California Regional Water CRWQCB Quality Control Board OCHCA CWA Clean Water Act OCSD California Water Environment CWEA Association OCWD EIR Environmental Impact Report OOBS EMT Executive Management Team I OSHA EPA US Environmental Protection I PCSA Agency FOG Fats, Oils, and Grease I PDSA gpd gallons per day PFAS GWRS Groundwater Replenishment PFOA System ICS Incident Command System PFOS IERP Integrated Emergency POTW Response Plan JPA Joint Powers Authority Ippm LAFCO Local Agency Formation I PSA Commission Level Of Service RFP Request For Proposal Million Gallons Per Day RWQC Re Tonal Water Qualit Memorandum of SARFP Understanding National Association of Clean SARI Water Agencies National Environmental Policy SARW Act Non -Governmental SAWP Organizations National Pollutant Discharge SCADA Elimination System B g y Control Board A Santa Ana River Flood Protection Agency Santa Ana River Interceptor Santa Ana Regional Water QCB Quality Control Board A Santa Ana Watershed Project Authority Supervisory Control And Data Acquisition National Water Research Southern California Institute SCAP Alliance of Publicly Owned Treatment Works Operations & Maintenance SCA South Coast Air Qualit Orange County Council of SOC Governments Orange County Health Care SRF Agency Orange County Sanitation SSM District Orange County Water District ISSO QMD y Management District WA South Orange County Wastewater Authority Clean Water State Revolving Fund P Sewer System Management Plan Sanitary Sewer Overflow Ocean Outfall Booster Station 1SWRCState Water Resources B Occupational Safety and TDS Health Administration Professional Consultant/Construction TMDL Services Agreement Professional Design Services TSS Agreement Per- and Polyfluoroalkyl Substances WDR Perfluorooctanoic Acid IWEF Perfluorooctanesulfonic Acid WERF Publicly Owned Treatment WIFIA Works parts per million 1WIIN Professional Services I WRDA Agreement Control Board Total Dissolved Solids Total Maximum Daily Load Total Suspended Solids Waste Discharge Requirements Water Environment Federation Water Environment & Reuse Foundation Water Infrastructure Finance and Innovation Act Water Infrastructure Improvements for the Nation Act Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS — The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) — The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS — A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high -quality product can be recycled as a soil amendment on farmland or further processed as an earth -like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA — A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) — The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) — Ajoint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and OCSD provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) — Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer -causing agent. It has been found in the GWRS process and is eliminated using hydrogen peroxide with extra ultra -violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) —An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) — A large group (over 6,000) of human -made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) — An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS) — A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. PLUME — A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW) — A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE — A regional brine line designed to convey 30 million gallons per day of non - reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT — Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE — Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS (TSS) — The amount of solids floating and in suspension in wastewater. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS TRICKLING FILTER — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER — Any water that enters the sanitary sewer. WATERSHED — A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.