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Home My WebLink About11-12-2025 Administration Committee Complete Agenda Packet SPECIAL NOTICE PUBLIC ATTENDANCE & PARTICIPATION AT PUBLIC MEETINGS Administration Committee Meeting Wednesday, November 12, 2025 5:00 p.m. 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. IN-PERSON MEETING ATTENDANCE You may attend the meeting in-person at the following location: Orange County Sanitation District Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 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. ~SAN ORANGE COUNTY SANITATION DISTRICT 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: 886 385 948# 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. WATCH THE MEETING ONLINE The meeting will be available for online viewing at: https://ocsd.legistar.com/Calendar.aspx SUBMIT A COMMENT 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/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. For any questions and/or concerns, please contact the Clerk of the Board’s office at 714-593-7433. Thank you for your interest in OC San! November 4, 2025 NOTICE OF REGULAR MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, November 12, 2025 – 5:00 P.M. Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. Specific information as to how to participate in this meeting is detailed on the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during this meeting: you may participate in person, 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, November 12, 2025 at 5:00 p.m. OC 6 SAN ORANGE COUNTY SANITATION DISTRICT 18480 Bandi:lier Circle fountain Valley, CA 92708 714.962.2411 www.ocsan.gov our Mission: To protect public health and the environment by providing effective wastewater collection, treatmen~ and recyding. Serving: Anaheim Brea Buena Park Cypress Fountain Valle)' Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park County of Orange Costa Mesa Sanitary District Midway City Sanrtary District Irvine Ranch Water District Yorba Linda Water District ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 11/12/25 12/10/25 01/28/26 02/11/26 02/25/26 03/11/26 03/25/26 04/08/26 04/22/26 05/13/26 05/27/26 06/10/26 06/24/26 07/08/26 07/22/26 08/26/26 09/09/26 09/23/26 10/14/26 10/28/26 * 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: November 12, 2025 Time: 5:00 p.m. COMMITTEE MEMBERS (13) OTHERS STAFF ORANGE COUNTY SANITATION DISTRICT Effective 10/1/2025 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR DIRECTOR Anaheim Carlos A. Leon Ryan Balius Brea Christine Marick Cecilia Hupp Buena Park Joyce Ahn Lamiya Hoque Cypress VACANT Bonnie Peat Fountain Valley Glenn Grandis Ted Bui Fullerton Jamie Valencia Shana Charles Garden Grove Stephanie Klopfenstein Cindy Ngoc Tran Huntington Beach Pat Burns Gracey Van Der Mark Irvine Melinda Liu Kathleen Treseder La Habra Jose Medrano Rose Espinoza La Palma Debbie Baker Vikesh Patel Los Alamitos Jordan Nefulda Tanya Doby Newport Beach Erik Weigand Michelle Barto Orange Jon Dumitru John Gyllenhammer Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Jessie Lopez Seal Beach Lisa Landau Ben Wong Stanton David Shawver John D. Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Jordan Wu Kelly McBride Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Tyler Diep Irvine Ranch Water District John Withers Dan Ferons County Areas Board of Supervisors Doug Chaffee Janet Nguyen ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 - 5:00 PM Board Room Headquarters 18480 Bandilier Circle 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 OC San's Headquarters located at 18480 Bandilier Circle, 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 those distributed less than 72 hours prior to the meeting to a majority of the Board of Directors, are available for public inspection with 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 RECORDING: A 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. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted 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: Rob Thompson, rthompson@ocsan.gov / (714) 593-7110 Asst. General Manager: Lorenzo Tyner, ltyner@ocsan.gov / (714) 593-7550 Director of Communications: Jennifer Cabral, jcabral@ocsan.gov / (714) 593-7581 Director of Engineering: Mike Dorman, mdorman@ocsan.gov / (714) 593-7014 Director of Environmental Services: Lan Wiborg, lwiborg@ocsan.gov / (714) 593-7450 Director of Finance: Wally Ritchie, writchie@ocsan.gov / (714) 593-7570 Director of Human Resources: Laura Maravilla, lmaravilla@ocsan.gov / (714) 593-7007 Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 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 participate in person, 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. REPORTS: The Board 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. 1.2025-4568APPROVAL OF MINUTES RECOMMENDATION: Approve minutes of the Regular meeting of the Administration Committee held October 8, 2025. Originator:Kelly Lore Attachments: 2.2025-4527PUBLIC AFFAIRS UPDATE FOR THE MONTH OF OCTOBER 2025 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Public Affairs Update for the month of October 2025. Originator:Jennifer Cabral Attachments: Page 1 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 3.2025-4571ORANGE COUNTY SANITATION DISTRICT 2026 LEGISLATIVE AND REGULATORY PLAN RECOMMENDATION: Recommend to the Board of Directors to: Adopt the Orange County Sanitation District 2026 Legislative and Regulatory Plan. Originator:Jennifer Cabral Attachments: 4.2025-4560CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025 RECOMMENDATION: 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, 2025. Originator:Wally Ritchie Attachments: 5.2025-4444TREASURER’S REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District First Quarter Treasurer’s Report for the period ended September 30, 2025. Originator:Wally Ritchie Attachments: 6.2025-4582INDUSTRIAL CONTROL SYSTEM PENETRATION TEST AND VULNERABILITY ASSESSMENT RECOMMENDATION: A. Approve a Purchase Order Contract to Carahsoft Technology Corp for the purchase of an Industrial Control System Network Penetration Test and Vulnerability Assessment utilizing the cooperative OMNIA Software Solutions and Services Contract No. R240303, for a total amount not to exceed $210,750 Page 2 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 (Includes Sales Tax); and B. Approve a contingency in the amount of $21,075 (10%). Originator:Wally Ritchie Attachments: 7.2025-4584GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST RECOMMENDATION: 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, 2025 to September 30, 2025; and B. Approve the following additions to the pre-approved Original Equipment Manufacturers (OEM) Sole Source List: ·BENTLY NEVADA, LLC - System 1 Software Maintenance & Support ·FARO TECHNOLOGIES, INC. - Laser Equipment, Hardware Service, Software, Maintenance and Training ·EMERSON PROCESS MANAGEMENT - Technical Support for Software and Equipment ·STO ADVISORS - Professional Services to Manage Pipeline and Hazardous Materials Safety Administration (PHMSA) Federal Regulations Originator:Wally Ritchie Attachments: NON-CONSENT: 8.2025-4581LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF OCTOBER 2025 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Legislative Affairs Update for the month of October 2025. Originator:Jennifer Cabral Page 3 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 Agenda Report Federal Legislative Update Federal Matrix State Legislative Update State Matrix Local Legislative Update Presentation Attachments: 9.2025-4562ORANGE COUNTY SANITATION DISTRICT ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2025 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District’s (OC San) Annual Comprehensive Financial Report for the year ended June 30, 2025, 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. Originator:Wally Ritchie Attachments: 10.2025-4561ORANGE COUNTY SANITATION DISTRICT POPULAR ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2025 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Popular Annual Financial Report for the year ended June 30, 2025. Originator:Wally Ritchie Page 4 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 Agenda Report Popular Annual Financial Report for the Year Ended June 30, 2025 Attachments: 11.2025-4353JOINT POWERS AGREEMENT, SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT AUTHORITY (SCCWRP) RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-XX titled, “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Eleventh Amended Joint Powers Agreement confirming the creation of an agency known as Southern California Coastal Water Research Project Authority (SCCWRP), providing for continuation of SCCWRP for five years from July 1, 2026 through June 30, 2031”; and B. Approve annual funding in the amount of $600,000 for FY 2026/27; $618,000 for FY 2027/28; $636,000 for FY 2028/29; $656,000 for FY 2029/30; and $675,000 for FY 2030/31. Originator:Lan Wiborg Attachments: INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. Page 5 of 6 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 12, 2025 ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Administration Committee on December 10, 2025 at 5:00 p.m. AFFIDAVIT OF PUBLICATION: I hereby certify under penalty of perjury and as required by the State of California, Government Code § 54954.2(a), that the foregoing Agenda was posted online at www.ocsan.gov, in the lobby, and outside the main door of Orange County Sanitation District Headquarters at 18480 Bandilier Cir. Fountain Valley, CA 92708 not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including those distributed less than 72 hours prior to the meeting to a majority of the Board of Directors, are available for public inspection with the Clerk of the Board. /s/ Kelly A. Lore, MMC Clerk of the Board November 4, 2025 Page 6 of 6 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4568 Agenda Date:11/12/2025 Agenda Item No:1. FROM:Robert Thompson, 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 October 8, 2025. 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. RELEVANT STANDARDS ·Resolution No. OC SAN 24-09 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·October 8, 2025 Administration Committee meeting minutes Orange County Sanitation District Printed on 10/30/2025Page 1 of 1 OC6SAN ORANGE COUNTY SANITATION DISTRICT Orange County Sanitation District Minutes for the ADMINISTRATION COMMITTEE Wednesday, October 8, 2025 5:00 PM Board Room Headquarters 18480 Bandilier Circle 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 Board Chairman Ryan Gallagher on Wednesday, October 8, 2025 at 5:02 p.m. in the Orange County Sanitation District Headquarters. Chair Gallagher led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM: Assistant Clerk of the Board Jackie Castro declared a quorum present as follows: PRESENT:Jon Dumitru, Ryan Gallagher, Melinda Liu, Christine Marick, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu, Ted Bui (Alternate) and Tanya Doby (Alternate) ABSENT:Jose Medrano and Chad Wanke STAFF PRESENT: Rob Thompson, General Manager; Lorenzo Tyner, Assistant General Manager; Jennifer Cabral, Director of Communications; Mike Dorman, Director of Engineering; Laura Maravilla, Director of Human Resources; Riaz Moinuddin, Director of Operations and Maintenance; Wally Ritchie, Director of Finance; Lan Wiborg, Director of Environmental Services; Jackie Castro, Assistant Clerk of the Board; Mo Abiodun; Morty Caparas; Belen Carrillo; Daisy Covarrubias; Thys DeVries; John Frattali; Al Garcia; Rebecca Long; Joe Manzella; Tom Meregillano; Rob Michaels; Tania Moore; Thomas Vu; Kevin Work; Sammady Yi; and Ruth Zintzun were present in the Board Room. OTHERS PRESENT: Scott Smith, General Counsel, and Peter Whittingham, Whittingham Public Affairs Advisors, were present in the Board Room. Eric O’Donnell, Townsend Public Affairs, and Eric Sapirstein, ENS Resources, were present virtually. PUBLIC COMMENTS: None. REPORTS: Chair Gallagher did not have a report. General Manager Rob Thompson announced that a Special Meeting of the Board of Directors will be held on Friday, October 17, 2025 at 11:00 a.m. for the State of OC San. Mr. Thompson then introduced Director of Finance Wally Ritchie for a brief announcement. Page 1 of 6 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Minutes October 8, 2025 Mr. Ritchie reported that OC San's debt refinancing was priced earlier today. There were 15 bidders, and all three rating agencies reaffirmed OC San’s AAA ratings. The refinancing resulted in a true interest cost of 2.66%. While initial estimates projected $9 million in savings, the actual savings totaled $14.1 million. The transaction is expected to close on November 4. CONSENT CALENDAR: 1.APPROVAL OF MINUTES 2025-4516 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the Regular meeting of the Administration Committee held September 10, 2025. AYES:Jon Dumitru, Ryan Gallagher, Melinda Liu, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu and Tanya Doby (Alternate) NOES:None ABSENT:Christine Marick, Jose Medrano, Chad Wanke and Ted Bui (Alternate) ABSTENTIONS:None 2.NETWORK TAPS FOR INDUSTRIAL CONTROL SYSTEM (ICS) NETWORK AND OFFICE NETWORK 2025-4513 Originator: Wally Ritchie AYES:Jon Dumitru, Ryan Gallagher, Melinda Liu, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu and Tanya Doby (Alternate) NOES:None ABSENT:Christine Marick, Jose Medrano, Chad Wanke and Ted Bui (Alternate) ABSTENTIONS:None Page 2 of 6 ADMINISTRATION COMMITTEE Minutes October 8, 2025 NON-CONSENT: Committee Chair Christine Marick arrived at the meeting at 5:08 p.m. 3.2025-4514 Originator: Jennifer Cabral Receive and file the Legislative Affairs Update for the month of September 2025. AYES:Jon Dumitru, Ryan Gallagher, Melinda Liu, Christine Marick, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu and Tanya Doby (Alternate) NOES:None ABSENT:Jose Medrano, Chad Wanke and Ted Bui (Alternate) ABSTENTIONS:None 4.PUBLIC AFFAIRS UPDATE FOR THE MONTH OF SEPTEMBER 2025 2025-4526 Originator: Jennifer Cabral Receive and file the Public Affairs Update for the month of September 2025. AYES:Jon Dumitru, Ryan Gallagher, Melinda Liu, Christine Marick, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu and Tanya Doby (Alternate) NOES:None ABSENT:Jose Medrano, Chad Wanke and Ted Bui (Alternate) ABSTENTIONS:None Page 3 of 6 ADMINISTRATION COMMITTEE Minutes October 8, 2025 5.SECURITY SERVICES BID EVALUATION CRITERIA 2025-4528 Originator: Laura Maravilla PROPOSED EVALUATION CRITERIA PROPOSED WEIGHT 1. Firm Background, Qualifications, Experience and References 30% 2. Security Officer Qualifications, Screening, Training 25% 3. Work Plan 30% 4. Completeness of Response/Degree of Compliance 5% 5. Cost 10% AYES:Jon Dumitru, Ryan Gallagher, Melinda Liu, Christine Marick, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu and Tanya Doby (Alternate) NOES:None ABSENT:Jose Medrano, Chad Wanke and Ted Bui (Alternate) ABSTENTIONS:None 6.INTERNAL AUDIT UPDATE 2025-4532 Originator: Wally Ritchie Receive and file the IT Governance Internal Audit Report. AYES:Jon Dumitru, Ryan Gallagher, Melinda Liu, Christine Marick, Andrew Nguyen, David Shawver, Erik Weigand, John Withers, Jordan Wu and Tanya Doby (Alternate) NOES:None ABSENT:Jose Medrano, Chad Wanke and Ted Bui (Alternate) ABSTENTIONS:None Page 4 of 6 ADMINISTRATION COMMITTEE Minutes October 8, 2025 INFORMATION ITEMS: 7.ORANGE COUNTY SANITATION DISTRICT HUMAN RESOURCES DEPARTMENT OVERVIEW 2025-4529 Originator: Laura Maravilla Information Item. Alternate Director Ted Bui arrived at the meeting at 5:47 p.m. 8.ENGINEERING DEPARTMENT STAFFING PLAN 2025-4533 Originator: Mike Dorman Information item. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. Page 5 of 6 ADMINISTRATION COMMITTEE Minutes October 8, 2025 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: Director John Withers expressed appreciation and commended staff for his recent experience aboard the Nerissa. He also recommended inviting the Huntington Beach and Newport Beach City Councils, along with key executives, aboard the Nerissa, as they are most impacted by the work that is done there. ADJOURNMENT: Chair Marick declared the meeting adjourned at 5:59 p.m. to the next Regular Administration Committee meeting to be held on Wednesday, November 12, 2025 at 5:00 p.m. Submitted by: _____________________ Jackie Castro, CMC Assistant Clerk of the Board Page 6 of 6 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4527 Agenda Date:11/12/2025 Agenda Item No:2. FROM:Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF OCTOBER 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Public Affairs Update for the month of October 2025. BACKGROUND Included in this report are recent activities of interest managed by the Public Affairs Office for the month of October 2025. RELEVANT STANDARDS ·Maintain influential legislative advocacy and a public outreach program ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities ·Listen to and seriously consider community input on environmental concerns PROBLEM The Orange County Sanitation District (OC San) is a distinguished entity in the water/wastewater industry. Despite our industry recognition, there may be limited awareness among our customers regarding the pivotal role we play in protecting public health and the environment. The absence of direct communication through a billing method may contribute to this gap in knowledge. It is our responsibility to ensure that our ratepayers understand the vital services we provide. Many customers may not realize that improper waste disposal into the sanitation system can adversely impact our sewer lines, reclamation plants, and the quality of water supplied through GWRS. By enhancing communication channels and fostering understanding, we aim to bridge the gap and empower our ratepayers with the knowledge needed to support and appreciate the essential work we undertake for the well-being of our community and the environment. Orange County Sanitation District Printed on 11/4/2025Page 1 of 4 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4527 Agenda Date:11/12/2025 Agenda Item No:2. PROPOSED SOLUTION By providing tours,community outreach,education,and general communication via OC San’s website,social media,and direct mailings,we can share information with the community,local agencies,and businesses on our messaging such as the What2Flush program,energy production, water recycling,biosolids,and our source control program.This,in turn,helps improve the quality of wastewater that is recycled or released to the ocean and the knowledge and understanding of wastewater treatment. RAMIFICATIONS OF NOT TAKING ACTION Failing to inform the community,local agencies,and businesses about OC San might result in insufficient support for our mission and hinder our effectiveness. PRIOR COMMITTEE/BOARD ACTIONS July 2025 -Receive and file the Year-End Update to the Public Affairs Strategic Plan for Fiscal Years 2024-2026. December 2024 -Receive and file the Public Affairs Strategic Plan for Fiscal Years 2024-2026 Mid- Year Update June 2024 - Receive and file the Public Affairs Strategic Plan for Fiscal Years 2024-2026. ADDITIONAL INFORMATION Activities in October: Outreach Report An outreach report that includes tours,website updates,social media posts,construction notifications, speaking engagements, and more is attached to this Agenda Report. Social Media OC San messaging,announcements,and program updates are shared across OC San’s social media platforms.Of special note,a video reel created for Water Professionals Appreciation Week that garnered over 1.5K impressions. OC San’s social media handle is @OCSanDistrict. ·Facebook: 14 posts reaching 3.3K people ·X: 11 posts reaching 374 people ·Instagram: 18 posts reaching 5.7K people ·LinkedIn: 6 posts reaching 4.5K people ·Nextdoor: 1 post reaching 12.5K people Presentations and Outreach Events In October, OC San participated in the Costa Mesa Sanitary District’s Eco Expo and the Yorba Linda Water District’s Open House. Staff hosted 11 tours,welcoming a variety of groups including Cal State Long Beach,Rancho Santiago High School,the California Association of Sanitation Agencies,Orange County Water Orange County Sanitation District Printed on 11/4/2025Page 2 of 4 powered by Legistar™ File #:2025-4527 Agenda Date:11/12/2025 Agenda Item No:2. Santiago High School,the California Association of Sanitation Agencies,Orange County Water District,Costa Mesa Sanitary District,Huntington Beach Chamber of Commerce,iLead Exploration Charter School,State of OC San guests,and Wastewater 101 graduates.Staff also participated in speaking engagements at Golden West College and Cal State Fullerton STEM Internship and Expo. Wastewater 101 - Tour and Graduation The Fall Cohort of the OC San Wastewater 101 Citizens Academy concluded with 41 graduates who successfully completed all four sessions.Participants also had the opportunity to attend an in-person tour on Saturday,October 18,led by Operations Manager,Jon Bradley.Thirty participants toured Reclamation Plant Nos. 1 and 2, and the Steve Anderson Lift Station. State of OC San The 12th annual State of OC San took place on Friday,October 17,hosted at Headquarters for the first time.The event featured Joaquin Esquivel,Chair of the State Water Resources Control Board, as the distinguished guest speaker.The event provided an update on OC San’s accomplishments and future direction.This year,approximately 150 local,state,and federal dignitaries,and community members attended. Educational Display After months of development,Phase Two of the Educational Display was successfully installed in front of Headquarters.This hands-on display,part of the General Manager’s Work Plan,supports our educational efforts by showcasing the magnitude of the pipe system managed and operated by OC San. Annual Report OC San’s 2024-2025 Annual Report was published highlighting the year’s accomplishments, including the Pretreatment Honor Roll Program,the RISE program,our financial standing,and outreach efforts. The report and a year-end video are available at https://www.ocsan.gov/newsletter. OC San Connection Newsletter The fall issue of the community newsletter was published and distributed to more than 3,000 subscribers.The issue includes information on current construction projects,the new Educational Display,FOG focused content for the upcoming holidays,and a schedule of upcoming OC San public tours. The issue can be found at https://www.ocsan.gov/newsletter. Internal Communication Over the course of the month,there were 50 posts on the employee intranet -The San Box,and four all-staff emails were distributed through the Three Things to Know weekly update.We also published our bimonthly Pipeline newsletter covering September and October,featuring articles on the employee picnic, health fairs, and Halloween luncheon. Construction Outreach Update Outreach efforts for OC San construction activities are ongoing throughout the service area.Updates were shared for projects in the cities of Orange,Cypress and La Palma through the website,email alerts and text notifications reaching more than 4,000 members of the public.OC San also collaborates with the respective cities to share construction updates via city publications.For project details, visit https://www.ocsan.gov/construction. Orange County Sanitation District Printed on 11/4/2025Page 3 of 4 powered by Legistar™ File #:2025-4527 Agenda Date:11/12/2025 Agenda Item No:2. Awards OC San received three notable recognitions:a Silver Davey Award for its 70th Branding project,the Excellence in IT Practices Award from the Municipal Information Systems Association of California (MISAC)for the 18th consecutive year-an honor earned by only 5%of member agencies statewide- and ENR’s Best Government/Public Building Award for the new Headquarters facility,recognized for its innovative hybrid mass timber and steel design and environmentally responsible construction. Activities in November: Social Media November content will feature fall-themed messaging on FOG and What2Flush. Posts will also highlight America Recycles Day, World Toilet Day, and Veterans Day, among other observances that provide opportunities to share OC San’s messaging and recognize staff contributions. Presentations & Outreach Five tours are scheduled for November, welcoming groups from Masuda Elementary, Foundation Christian School, Fullerton Fire Department CERT Team, OCWD staff, and the general public. Staff will host a booth at the Girl Scouts of Orange County STEM Expo to promote STEM careers and will also present to the Asian American Architects and Engineers Association. Construction Outreach OC San will continue to share construction project updates through its various communication channels to keep the community informed. CEQA N/A FINANCIAL CONSIDERATIONS All items mentioned are included in OC San’s FY 2024-25 and FY 2025-26 Budget. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Outreach and Media Report for October 2025 Orange County Sanitation District Printed on 11/4/2025Page 4 of 4 powered by Legistar™ Outreach and Media Summary October 2025 OC San Public Affair s Of f ice ~SAN ORANGE COUNTY SANITATION DISTRICT Table of Contents OUTREACH REPORT…………………………………………………………PAGE 1 FACEBOOK POSTINGS ……………………………………………...............PAGE 3 TWITTER POSTINGS …………………………………………………………PAGE 4 INSTAGRAM POSTINGS………………………………………………………PAGE 5 LINKEDIN POSTINGS………………………………………………………....PAGE 6 NEXTDOOR POSTINGS……………………………………………………………………..PAGE 7 NEWS ARTICLES……………………………………………………………………………. PAGE 8 Outreach Report October 2025 Date Tours Attendees 10/3/25 Costa Mesa Sanitary District 4 Dickie Fernandez 10/11/25 Bassett Adult School 9 10/15/25 Cal State Long Beach Nursing 15 10/15/25 16 10/18/25 Wastewater 101 Tour 30 Jon Bradley 10/21/25 Cal State Long Beach Nursing 10 10/24/25 Rancho Santiago High School 12 10/27/25 iLead Exploration Charter School 30 10/27/25 Orange County Water District 8 10/28/25 30 Date Speaking Engagements/Events Attendees 10/1/25 Costa Mesa Sanitary District Eco Expo 176 Cortney Light/ Donald Herrera/ 10/4/25 Yorba Linda Water District Open House 500 Suzanne Crider/ 10/7/25 Class 30 10/14/25 Wastewater 101 Session 4 43 Raul Cuellar/ Thys DeVries/ 10/16/25 750 Aleks Glinka 10/17/25 State of OC San 150 Project Area Outreach Notifications Orange Taft Ave. Sewer Improvement Project 202 page views 513 email subscribers 1 printed notice 1 website post 1 email alert 1,250 homes and businesses 1 Cypress Cypress Trunk Sewer Project 312 email subscribers 74 text alert subscribers 4 website posts 2 email alerts 1,500 homes and businesses External Communications Distribution # of People Reached 5 Minutes Per Month 2024/2025 Annual Report Showcasing 126 One 50 Website Posts 5 posts 294 views Facebook 14 posts 3.3k reached Twitter 11 tweets 374reached Instagram 18 posts 5.7k reached LinkedIn 6 posts 4.5k reached Nextdoor 1 post 12.5k impressions 2 Post performance - Facebook Pages Data from 01 Oct, 2025 to 24 Oct, 2025 Sources Orange County Sanitation DistrictOD Orange County Sanitation District Oct 22, 21:31OD That 10-foot pipe outside HQ? Yeah, it’s real. And it’s kind of a big deal. It shows how we release highly treated water into the ocean—safely, responsibly, and now, very visibly. Come check it out—it's way cooler (and bigger) than you'd… 341 331 Orange County Sanitation District Oct 21, 17:10OD Last week, we welcomed about 150 guests at the State of OC San, where we celebrated our achievements over the past year and shared a glimpse of what's ahead. A special thanks to Joaquin Esquivel, Chair of the California Water… 281 263 Orange County Sanitation District Oct 20, 23:19OD Big things are happening at OC San 💡 Our 2024/2025 Annual Report is here, and it's all about innovation, impact, and what's next for us. See how we're continuously improving operations while keeping our mission at the heart of… 💧 37 35 Orange County Sanitation District Oct 20, 19:27OD The OC San Steering Committee Meeting (5 PM) and Board of Director's Meeting(6 PM) will be happening on Wednesday, October 22. You can view the agendahere:33 31 Orange County Sanitation District Oct 17, 16:05OD See the magic behind the flush 🚽 Our next public tour is November 4! Gobehind the scenes to see how we collect, treat, and recycle wastewater for ourcommunity. Reserve your spot today at www.ocsan.gov/tours 249 234 Orange County Sanitation District Oct 16, 16:01OD 💧 Clean water doesn’t happen by itself. Today, we're grateful for the GWRSand our partnership with Orange County Water District, which allows us torecycle 100% of reclaimable flows, creating a reliable supply of clean water …236 223 Orange County Sanitation District Oct 14, 22:34OD OC San will be hosting a Special Board of Directors Meeting on Friday, October 17 (11 am). You can view the agenda here:52 45 Orange County Sanitation District Oct 13, 16:10OD Abracadabra! And....poof! Ta Ave. is getting a serious sewer glow-up. 🪄Construction crews have been working their magic in the City of Orange byrelocating and upsizing certain portions of the regional sewer line. No tricks, ju…382 362 Orange County Sanitation District Oct 09, 17:35OD Looking for a career with impact? Make a dierence in Orange County by joiningthe OC San team. Explore open positions and apply today at ocsan.gov/careers 💧 407 335 Orange County SanitationDistrict Oct 07, 17:00OD Board Members on Board 🛥 Members from our Board of Directors got afirsthand look at the work of our Ocean Monitoring Team! From core rig fishing totrawl sampling, they witnessed our team's dedication to protecting the ocean… 🌊 467 429 Orange County SanitationDistrict Oct 06, 15:55OD untitled5 Water Pros. 5 Careers 💧 This Water Professionals Appreciation Week, we’recelebrating every role that keeps our communities flowing!583 526 Orange County SanitationDistrict Oct 06, 14:12OD The OC San Administration Committee Meeting (5 PM) will be happening on Wednesday, October 8. You can view the agenda here:53 45 Orange County SanitationDistrict Oct 03, 16:01OD Our Electrical Group brings the energy—literally! From our reclamation plants to 15 pump stations, they keep the energy flowing. That’s a lot of power… and a lot of teamwork! 343 320 Orange County SanitationDistrict Oct 01, 15:55OD 💡Big projects. Bold upgrades. Better infrastructure. OC San’s newest CIP Annual Report is out! 🚧 Check out the latest on collections system projects, plant upgrades, and more ways we’re investing in our community. Explore the… 149 132 DATE POST IMPRESSIONS REACH 3 Q Hootsuite® fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ fl __ Post performance - Twitter Data from 01 Oct, 2025 to 24 Oct, 2025 Sources @OCSanDistrict@ @OCSanDistrict Oct 22, 21:31@ That 10-foot pipe outside HQ? Yeah, it’s real. It’s kind of a big deal. It shows how we release highly treated water into the ocean—safely, responsibly, and now, very visibly. Check it out—it's way cooler (and bigger) than you'd think. Sign u… 15.38%4 26 @OCSanDistrict Oct 21, 17:10@ Last week, we welcomed about 150 guests at the State of OC San, where we celebrated our achievements over the past year and shared what's ahead. Thank you to Joaquin Esquivel, Chair of the @cawaterboards, for joining us an… 0%0 35 @OCSanDistrict Oct 20, 23:19@ Big things are happening at OC San 💡 Our 2024/25 Annual Report is here— highlighting innovation, impact, and what’s next. See how we’re improving operations while staying true to our mission 💧 http://ocsan.gov/reports https:… 3.33%1 30 @OCSanDistrict Oct 17, 16:05@ See the magic behind the flush 🚽 Our next public tour is November 4! Gobehind the scenes to see how we collect, treat, and recycle wastewater for ourcommunity. Reserve your spot today at http://www.ocsan.gov/tours https://t…7.69%3 39 @OCSanDistrict Oct 16, 16:01@ 💧 Clean water doesn’t happen by itself. Today, we're grateful for the GWRSand our partnership with @OCWaterDistrict, which allows us to recycle 100% ofreclaimable flows, creating a reliable supply of clean water for 1 million…14%7 50 @OCSanDistrict Oct 13, 16:10@ Abracadabra! And....poof! Ta Ave. is getting a serious sewer glow-up. 🪄Construction crews have been working their magic in the City of Orange byrelocating and upsizing certain portions of the regional sewer line. Stay updat…10%3 30 @OCSanDistrict Oct 09, 17:35@ Looking for a career with impact? Make a dierence in Orange County by joiningthe OC San team. Explore open positions and apply today at http://ocsan.gov/careers💧 https://twitter.com/OCSanDistrict/status/1976340681065955794/p…13.64%6 44 @OCSanDistrict Oct 07, 17:00@ Board Members on Board 🛥 Members from our Board of Directors got afirsthand look at the work of our Ocean Monitoring Team! From core rig fishing totrawl sampling, they witnessed our team's dedication to protecting the ocean… 🌊 3.33%1 30 @OCSanDistrict Oct 06, 15:55@ 5 Water Pros. 5 Careers 💧 This Water Professionals Appreciation Week, we’recelebrating every role that keeps our communities flowing! https://twitter.com/OCSanDistrict/status/1975228315100209364/video/1 3.23%1 31 @OCSanDistrict Oct 03, 16:01@ Our Electrical Group brings the energy—literally! From our reclamation plantsto 15 pump stations, they keep the energy flowing. That’s a lot of power… and alot of teamwork! https://twitter.com/OCSanDistrict/status/197414268637113…0%0 31 @OCSanDistrict Oct 01, 15:55@ 💡Big projects. Bold upgrades. Better infrastructure. OC San’s newest CIPAnnual Report is out! 🚧 Check out the latest on collections system projects,plant upgrades, and more ways we’re investing in our community. Explore the…0%0 28 DATE POST ENGAGEMENT RATE ENGAGEMENTS IMPRESSIONS 4 Q Hootsuite® 0 0 -- 0 -- 0 -- 0 --------- 0 -- 0 -- 0 ----------------- 0 -- 0 -- 0 -- 0 -- Post performance - Instagram Business Data from 01 Oct, 2025 to 24 Oct, 2025 Sources ocsandistrictO ocsandistrict Oct 22, 21:32O That 10-foot pipe outside HQ? Yeah, it’s real. And it’s kind of a big deal. It shows how we release highly treated water into the ocean—safely, responsibly, and now, very visibly. Come check it out—it's way cooler (and bigger) than you'd… 9.8%0 48 643 ocsandistrict Oct 21, 17:10O Last week, we welcomed about 150 guests at the State of OC San, where we celebrated our achievements over the past year and shared a glimpse of what's ahead. A special thanks to Joaquin Esquivel, Chair of the @ca.water.boards, fo… 8.43%0 15 249 ocsandistrict Oct 21, 16:19O (No description)0%0 0 146 ocsandistrict Oct 20, 23:19O Big things are happening at OC San 💡 Our 2024/2025 Annual Report is here,and it's all about innovation, impact, and what's next for us. See how we'recontinuously improving operations while keeping our mission at the heart of… 💧 4.79%0 6 167 ocsandistrict Oct 18, 19:07O Ending the tour at Plant No. 2 in Huntington Beach and a sneak peak at our new clarifiers 👀0%0 0 206 ocsandistrict Oct 18, 17:48O Up we go to the top of a trickling filter!0%0 0 220 ocsandistrict Oct 18, 17:12O Wastewater 101 Tour! First stop: Steve Anderson Li Station 0%0 0 244 ocsandistrict Oct 17, 21:44O what a wonderful State of OC San! thank you to Joaquin Esquivel, chair of @ca.water.boards , for being our distinguished speaker!0%0 0 457 ocsandistrict Oct 17, 16:05O See the magic behind the flush 🚽 Our next public tour is November 4! Gobehind the scenes to see how we collect, treat, and recycle wastewater for ourcommunity. Reserve your spot today at www.ocsan.gov/tours 6.55%0 15 229 ocsandistrict Oct 16, 16:01O 💧 Clean water doesn’t happen by itself. Today, we're grateful for the GWRSand our partnership with @OCWaterDistrict, which allows us to recycle 100% ofreclaimable flows, creating a reliable supply of clean water for 1 million…8.58%0 25 338 ocsandistrict Oct 15, 19:15O (No description)0%0 0 200 ocsandistrict Oct 13, 16:10O Abracadabra! And....poof! Ta Ave. is getting a serious sewer glow-up. 🪄Construction crews have been working their magic in the City of Orange byrelocating and upsizing certain portions of the regional sewer line. No tricks, ju…8.36%0 21 287 ocsandistrict Oct 09, 17:35O Looking for a career with impact? Make a dierence in Orange County by joining the OC San team. Explore open positions and apply today at ocsan.gov/careers 💧 5.31%0 9 245 ocsandistrict Oct 07, 17:01O Board Members on Board 🛥 Members from our Board of Directors got a firsthand look at the work of our Ocean Monitoring Team! From core rig fishing to trawl sampling, they witnessed our team's dedication to protecting the ocean… 🌊 15.28%0 42 360 ocsandistrict Oct 06, 15:55O 5 Water Pros. 5 Careers 💧 This Water Professionals Appreciation Week, we’re celebrating every role that keeps our communities flowing!11.7%0 99 1,043 ocsandistrict Oct 03, 16:01O Our Electrical Group brings the energy—literally! From our reclamation plants to 15 pump stations, they keep the energy flowing. That’s a lot of power… and a lot of teamwork! 9.94%0 30 322 ocsandistrict Oct 02, 15:15O Had a blast at the Eco Expo!0%0 0 187 ocsandistrict Oct 01, 15:55O 💡Big projects. Bold upgrades. Better infrastructure. OC San’s newest CIP Annual Report is out! 🚧 Check out the latest on collections system projects, plant upgrades, and more ways we’re investing in our community. Explore the… 9.09%0 14 176 DATE POST ENGAGEMENT RATE IMPRESSIONS LIKES REACH 5 Q Hootsuite® • @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- @ ---- Post performance - LinkedIn Pages Data from 01 Oct, 2025 to 24 Oct, 2025 Sources Orange County Sanitation DistrictOD Orange County Sanitation District Oct 21, 17:10OD Last week, we welcomed about 150 guests at the State of OC San, where we celebrated our achievements over the past year and shared a glimpse of what's ahead. A special thanks to Joaquin Esquivel, Chair of the State Water Resourc… 11.59%1,268 35 0 Orange County Sanitation District Oct 20, 23:19OD Big things are happening at OC San 💡 Our 2024/2025 Annual Report is here, and it's all about innovation, impact, and what's next for us. See how we're continuously improving operations while keeping our mission at the heart of… 💧 2.75%690 16 0 Orange County Sanitation District Oct 09, 17:35OD Looking for a career with impact? Make a dierence in Orange County by joining the OC San team. Explore open positions and apply today at ocsan.gov/careers 💧 5.85%598 12 1 Orange County Sanitation District Oct 07, 19:07OD Happy Water Professionals Appreciation Week to our dedicated team whokeep our system clean, reliable, and flowing! No matter their role, our sta workhard to uphold our mission of protecting public health and the environment. 💧 19.73%902 30 1 Orange County Sanitation District Oct 01, 19:40OD Another huge win for our Headquarters! We're proud to be part of a project that blends sustainability, innovation, and productivity for our sta.4.59%763 14 0 Orange County Sanitation District Oct 01, 15:55OD OC San’s newest Capital Improvement Program Annual Report is out! 🚧 Checkout the latest on collections system projects, plant upgrades, and more wayswe’re investing in our community. Explore the report at www.ocsan.gov!3.62%359 3 0 DATE POST ENGAGEMENT RATE IMPRESSIONS REACTIONS SHARES 6 Q Hootsuite® 7 •Nextdoor J!!! Home Q, Messages Cl Metrics Q; Invite Residents ffi E"'"ts Agency 0 Neighborhoods gg Directory c!i; Add Staff Members Help @ ResOU"Ce Hub $ Settings (v HelpCe<lter Holp • G!,;del;nos • Legal • Pdvacy Abovt ·Jobs · Prass· 010g Privacy PJ8feroocos © 2025 Nextdoo, Q Search Nextdoor Orange County Sanitation District Edit page description Q Share II Post g'Poll &Alert liiil Event ( My a9E1ncy ) Agencies in my juri&diction All nearby agencies All nearby new&publ ◄ " Orange County Sanitation District 0 ~~-~ Government Organization Orange County Sanitation Distr ... • 2 days ago m Cypress Trunk Sewer Project Update ~ .. see more Postod to Subscribers of Orange County Sanitation District Q O · 12,557 Impressions as Angeles ~ Orange County Sanitation District 895,845 members 510.458 claimed households 1,285 neighbomoods Details + • 0 Edrt Article Date Source Link UCANR: Water resilience, climate change, and water systems in California 9/24/2025 Maven's Notebook https://mavensnotebook.com/2025/09/24/uca nr-water-resilience-climate-change-and-water- systems-in-california/ Fitch Rates Orange County Sanitation District, CA Rev Obligations 'AAA'; Outlook Stable 9/25/2025 Fitch Ratings https://www.fitchratings.com/research/us- public-finance/fitch-rates-orange-county- sanitation-district-ca-rev-obligations-aaa- outlook-stable-25-09-2025 374Water Provides Waste Destruction as a Service and Deployment Updates for AirSCWO Technology 9/29/2025 Fox8 https://fox8.com/business/press- releases/globenewswire/9536665/374water- provides-waste-destruction-as-a-service-and- deployment-updates-for-airscwo-technology/ 374Water Advances Waste Destruction Services with AS6 System Installation at Orange County Sanitation District.9/30/2025 374Water https://www.ainvest.com/news/374water- advances-waste-destruction-services-as6- system-installation-orange-county-sanitation- district-2510/ Competitive Bond Sales Orange County Sanitation District, California 10/1/2025 Bond Buyer https://www.bondbuyer.com/legal-notices/96- 360-000-orange-county-sanitation-district- wastewater-ref-rev-obligations-srs-2025a Orange County Sanitation District has been rated 'AAA 10/9/2025 Fitch Ratings Orange County Sanitation District (CA) 374Water CEO talks AirSCWO rollout and new contracts 10/10/2025 374Water https://www.proactiveinvestors.com/compani es/news/1080140/374water-ceo-talks-airscwo- rollout-and-new-contracts-icymi-1080140.html OC San’s Credit Rating Saves Taxpayers Millions 10/15/2025 OC San Press Release https://ocsdgov.sharepoint.com/:b:/s/External /Eb6SfZ9- QoZHnltdGTt628MB93NzscfqiOzGpL7MMmHA cg?e=QQHB77 Media Articles for October 2025 8 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4571 Agenda Date:11/12/2025 Agenda Item No:3. FROM:Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: ORANGE COUNTY SANITATION DISTRICT 2026 LEGISLATIVE AND REGULATORY PLAN GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Adopt the Orange County Sanitation District 2026 Legislative and Regulatory Plan. BACKGROUND Each year, the Board of Directors adopts a legislative and regulatory plan that summarizes the Orange County Sanitation District’s (OC San) goals, key issues, and policy positions. The policies in this document are developed with consideration of agency priorities, the wastewater industry, OC San’s member agencies, and broader policy needs. These Board-adopted policies serve as OC San’s official positions of support or opposition on issues of importance to the agency. The Legislative and Regulatory Plan is a dynamic document, adopted annually, and may be modified throughout the year to align with changing Local, State, and Federal policymaking agendas. RELEVANT STANDARDS ·Maintain influential legislative advocacy and a public outreach program ·Build brand, trust, and support with policy makers and community leaders ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Without a strong advocacy program, elected officials may not fully understand OC San’s mission, programs, and projects, or how proposed legislation could impact them. PROPOSED SOLUTION Adopt the 2026 Legislative and Regulatory Plan directing staff to work with Local, State, and Federal officials to advocate for OC San’s legislative interests and to identify, create, and monitor legislation and grants that benefit OC San, the wastewater industry, and the community. To strengthen OC Orange County Sanitation District Printed on 11/4/2025Page 1 of 2 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4571 Agenda Date:11/12/2025 Agenda Item No:3. and grants that benefit OC San,the wastewater industry,and the community.To strengthen OC San’s relationships with elected officials,staff will continue to coordinate facility tours,one-on-one meetings, and lobby trips with representatives in Sacramento and Washington, D.C. PRIOR COMMITTEE/BOARD ACTIONS October 2025 - Received and filed the Legislative Affairs Update for the month of September 2025. ADDITIONAL INFORMATION N/A 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 2026 Legislative and Regulatory Plan Orange County Sanitation District Printed on 11/4/2025Page 2 of 2 powered by Legistar™ F 2026 Legislative and Regulatory Plan ORANGE COUNTY SANITATION DISTRICT 2 Table of Contents Legislative & Regulatory Advocacy Teams ............................................................................................................................. 3 Introduction ........................................................................................................................................................................... 4 Procedures for Establishing an OC San Position .................................................................................................................... 4 Guiding Priorities .................................................................................................................................................................... 5 Federal Priorities .................................................................................................................................................................... 5 State Priorities ........................................................................................................................................................................ 7 Local Priorities ........................................................................................................................................................................ 9 Appendix .............................................................................................................................................................................. 10 Federal Tactics.................................................................................................................................................................. 11 State Tactics ..................................................................................................................................................................... 13 Local Tactics ..................................................................................................................................................................... 16 Legislative and Regulatory Policies .................................................................................................................................. 17 Legislative and Regulatory Process Flow Chart ................................................................................................................ 27 3 Legislative & Regulatory Advocacy Teams OC San Legislative Advocacy Team Rebecca Long Principal Public Affairs Specialist (714) 593-7444 rlong@ocsan.gov Kelly Newell Public Affairs Specialist (714) 593-7102 knewell@ocsan.gov Jennifer Cabral Director of Communications (714) 593-7581 jcabral@ocsan.gov Daisy Covarrubias Public Affairs Supervisor (714) 593-7119 dcovarrubias@ocsan.gov Rob Thompson General Manager (714) 593-7110 rthompson@ocsan.gov Federal Advocacy Team Eric Sapirstein ENS Resources (202) 466-3755 esap@ensresources.com Sarah Sapirstein ENS Resources (202) 466-3755 ssap@ensresources.com David French ENS Resources (202) 466-3755 dfrench@ensresources.com State Advocacy Team Cori Takkinen Townsend Public Affairs (949) 399-9050 ctakkinen@TownsendPA.com Eric O’Donnell Townsend Public Affairs (949) 399-9050 eodonnell@TownsendPA.com Local Advocacy Team Peter Whittingham Whittingham Public Affairs Advisors (949) 280-9181 peter@whittinghampaa.com OC San Regulatory Advocacy Team Lan Wiborg, Director of Environmental Services (714) 593-7450 lwiborg@ocsan.gov Mark Kawamoto, Environmental Protection Manager (714) 593-7424 kawamoto@ocsan.gov Tom Meregillano, Environmental Protection Manager (714) 593-7457 tmeregillano@ocsan.gov Sam Choi, Environmental Protection Manager (714) 596-7497 schoi@ocsan.gov 4 Administration Committee Christine Marick Chair City of Brea Glenn Grandis Vice-Chair City of Fountain Valley Melinda Liu Member-At-Large City of Irvine Jose Medrano Member-At-Large City of La Habra Jordan Nefulda Member-At-Large City of Los Alamitos Andrew Nguyen Member-At-Large Midway City Sanitary District David Shawver Member-At-Large City of Stanton Chad Wanke Member-At-Large City of Placentia Erik Weigand Member-At-Large City of Newport Beach John Withers Member-At-Large Irvine Ranch Water District Jordan Wu Member-At-Large City of Villa Park Ryan Gallagher Board Chair City of Tustin Jon Dumitru Board Vice-Chair City of Orange Introduction The Orange County Sanitation District (OC San) recognizes the need for an active legislative and regulatory advocacy program at the Local, State, and Federal levels. This program ensures that the interests of the ratepayers and the Board of Directors (Board) are effectively represented and supported. The legislative and regulatory team actively engages, pursues, and monitors activities in California and Washington, D.C. and takes appropriate action to align these with OC San’s goals. Annually, the Board adopts a Legislative and Regulatory Plan that is a summary of OC San’s goals, key issues, and policy positions. The legislative and regulatory policies in this document were developed to take into consideration OC San’s priorities, specifically for the wastewater industry and policy needs. These Board-approved policies serve as OC San’s official positions of support or opposition on issues of importance to the agency. The Legislative and Regulatory Plan is an evolving document, which is adopted and revised each year to ensure its alignment with the continuously changing local, state, and federal policy changes. Consistent with the Legislative and Regulatory Plan and in alignment with the legislative strategy, the legislative and regulatory team may prepare position letters, advocate for OC San, and/or provide commentary on proposed legislation and regulations. Procedures for Establishing an OC San Position 1. The Legislative and Regulatory team will track bills and proposed regulations of greatest interest to OC San, particularly those that align with the goals and objectives identified by the Board and referenced in this plan. Staff will monitor bills and proposed regulations being watched by similar agencies within our region (Los Angeles County Sanitation Districts, South Orange County Water Authority, Orange County Water District, Irvine Ranch Water District, Municipal Water District of Orange County, etc.) as well as state, federal, and national associations such as California Association of Sanitation Agencies (CASA), Clean Water SoCal (CWSC), California Special Districts Association (CSDA), Association of California Water Agencies (ACWA), Association of California Cities Orange County (ACC-OC), League of California Cities (LOCC), and National Association of Clean Water Agencies (NACWA). 5 2. For those bills and proposed regulations that are being tracked and where there is clear policy direction stated in the current Legislative and Regulatory Plan, the Public Affairs and Regulatory team may send comment letters to legislators and regulators and give direction to the lobbyists to advocate that position. 3. As a first step, when the Regulatory Affairs team as part of Environmental Services is considering issuing a comment letter on proposed regulations, the team will first review the Board-approved criteria established in the current Legislative and Regulatory Plan. If the proposed position meets the established criteria, the team will work with the member associations to ensure a unified voice. When appropriate, the member association(s) will take the lead and advocate on our behalf. Otherwise, a comment letter will be submitted from OC San directly. This will be decided by both the Regulatory Affairs team with input from the Public Affairs Office. Additionally, the Regulatory Affairs team will work directly with OC San’s Director of Communications and other managers as appropriate when crafting an official comment letter. 4. When a legislative issue is not time-sensitive, the legislative letter will be hand-signed by the Board Chair or Vice-Chair. If a legislative or regulatory matter is urgent, Legislative and Regulatory team may use the electronic signature, so long as a clear policy direction exists, and approval is secured from the General Manager, or Designee. 5. When a bill does not fall within the scope of the Legislative and Regulatory Plan or is a controversial issue, staff will seek direction from the Administration Committee. 6. If a bill does not fall within the scope of the Legislative and Regulatory Plan, but the ACC-OC, CASA, CWSC, CSDA, and/ or NACWA has adopted a unified position, staff may follow the adopted position and inform the Administration Committee of such action at the next regularly scheduled meeting. Guiding Priorities • Oppose redundant regulatory and legislative requirements that impose excessive limitations on effective operations; • Support legislative and regulatory measures that enhance affordability, safeguard public health, and ensure environmental protection; • Maintain local control over governance of special districts and other local entities; • Pursue financial assistance opportunities for OC San projects through grants, loans, and legislative-directed funding. Federal Priorities • Funding/Finance o Advocate for national infrastructure program that includes wastewater infrastructure needs. o Advocate for fully authorized federal water infrastructure funding of existing programs in addition to national infrastructure initiatives including, but not limited to, Clean Water Act State Revolving Fund (SRF), Water Infrastructure Finance and Innovation Act (WIFIA), Smart Water Infrastructure Grants, and Water Recycling. Additionally, advocate for federal support assistance for workforce training. o Secure competitive and direct federal grant assistance in support of resilient infrastructure, renewable energy, biosolids management, and water and organic management recycling projects assistance. 6 o Monitor and obtain federal grants for funding of traditional wastewater treatment needs, alternative renewable energy, bioenergy, water recycling, biosolids beneficial use, and environmental protection. o Support development of infrastructure policies and legislation that will close funding gaps and encourage direct grant assistance in support of projects and programs addressing resiliency needs that protect OC San infrastructure investments from natural disasters. o Work in support of CERCLA as Per- and polyfluoroalkyl substances (PFAS) liability exemption for water sector. Support legislation, policies, and regulations that offer to provide below-market bonding rate assistance to construct treatment facilities including credit assistance including Municipal Facility Assistance, and infrastructure banks. Focus should include modernizing wastewater treatment facilities. This should include energy and water use efficiency as well as sustainable energy recovery technologies. o Secure federal support of OC San’s capital project needs to aid in the budget decision making process for the coming fiscal year. o Promote restoration of federal deductibility of state and local tax payments and oppose elimination or restriction on the use or availability of tax-exempt financing for public infrastructure. o Support legislation to revise the SRF allocation formula to allow for appropriate and fair share of funding to California that is consistent with the EPA’s Review of the Allotment of the Clean Water State Revolving Fund (CWSRF) study (20 percent increase in share). o Support removal of private activity Bond State Volume Cap as part of the national infrastructure initiative on water and wastewater facilities to allow for innovative financing approaches. • Innovative Technology o Work with Congress and the EPA to enhance the WaterSense Program to increase the use of energy and water use efficiency technologies at OC San while protecting against potential increasing treatment costs related to the program’s rulemaking. o Work with Congress to authorize and fund direct assistance to support innovative technology adoption. • Contaminants of Emerging Concern o Support the reduction/elimination of Contaminants of Emerging Concern (CEC) such as Per- and polyfluoroalkyl substances (PFAS), microplastics, pharmaceuticals and personal care products (PPCPs), pesticides and endocrine disrupting chemicals (EDCs) within consumer and commercial products. o Recognition of a PFAS/CEC baseload that originates from non-industrial sources that are immune from local, state, and federal source control/ pretreatment regulations. o Work with Congress to advance federal assistance to support the treatment of forever chemicals and to protect public agencies from liability for per- and polyfluoroalkyl substances (PFAS) presence in biosolids, wastewater, and air. o Request that manufacturers of PFAS chemicals provide a funding stream for federal grants and low-interest loans to agencies that are impacted. o Support regulations or legislation that limit or ban the creation, formulation, and general use of PFAS constituents. o Oppose regulations or legislation that would place responsibility for addressing PFAS as a class of constituents on water sector. o Secure liability exemption for wastewater agencies from liability under CERCLA as a result of hazardous substance designation. o Preserve land application of biosolids based upon science justified standards under Section 503. CECs. 7 o Work with the EPA on emerging regulatory issues of concern including integrated planning, method development, monitoring effluent limitations and guidelines, and Contaminants of Emerging Concern including, but not limited to, PFAS, microplastics, and methylene chloride. o Support legislation that will eliminate non-essential PFAS uses to reduce and mitigate PFAS in everyday consumer goods. • NPDES/Permitting o Advocate to authorize EPA to provide National Pollutant Discharge Elimination System (NPDES) permits terms for a period of up to 10 years and to retain a five-year administrative extension authority. o Support streamlining of the Clean Water Act permitting processes. • Environment/Climate Mitigation o Work with OC San’s congressional delegation and administration officials to advance funding of resiliency needs, including impacts associated with sea level rise, climate change, and natural disasters, such as wildfires and tsunamis, which could affect our utility grid and cause power outages. o Also, seismic events, drought, and general resiliency planning that would support OC San’s water recycling, conservation, and other resiliency projects. • Source Control o Support implementation of policies to label wipes as non-flushable/non-dispersible and support product substitution. o Advocate for federal policies that minimize regulatory burdens imposed upon communities and public agencies that seek to adopt programs for the giveback of pharmaceuticals that will result in the reduction of disposal of pharmaceuticals through wastewater treatment facilities. Additionally, OC San will advocate for federal funding of programs currently authorized that support the development of pharmaceutical management programs including education. o Monitor legislation and regulations that limit PFAS in industrial wastewater. State Priorities • Funding/Finance o Secure funding through grants and legislation for infrastructure, collection improvements, and alternative renewable energy at the Headquarters, Fountain Valley, Plant No. 1 and Huntington Beach, Plant No. 2. o Promote a regional distribution/statewide equity approach to the disbursement of State Revolving Fund (SRF) monies. o Oppose legislation or any regulations that would mandate volumetric pricing of wastewater. o Actively protect the allocation of local property taxes to special districts in the state budget process. o Monitor legislation that affects capacity and connection fees for accessory dwelling units or single- family residences. o Support legislation that would encourage or develop bulk energy storage facilities as well as legislation that would provide funding for long-term energy storage. o Obtain funding for projects that meet the State’s goals of expanded water supply, energy reduction, and renewable energy implementation. o Where appropriate, obtain State funding for critical aging infrastructure, through funding sources made available through any agency including, but not limited to, the State Water Resources Control Board (SWRCB), California Air Resources Board (CARB), and the Department of Water Resources (DWR). 8 o Support funding through grants and legislation for a Food Waste/Organic Co-Digestion facility. o Monitor pension reform legislation for clean-up bills and relevant proposed regulations. o Support legislation that would supersede the Kaanana decision by limiting prevailing wage requirements for utilities to construction contracts. o Support targeted funding through grants and legislation for zero and near zero emission vehicles and the supporting infrastructure required for zero emission vehicles. o Monitor and support funding for PFAS prevention, cleanup, collection, and disposal programs. • Contaminants of Emerging Concern o Support regulations and legislations that abide by the ‘producer pays’ principle when allocating clean up responsibility and enable cost recovery. o Oppose regulations or legislation that puts responsibility of addressing PFAS as a class of constituents on public treatment plants. o Monitor state legislation as well as the SWRCB and CARB on regulatory activity related to PFAS. o Work with legislators to address concerns stemming from Mobile Persistent Bioaccumulative Toxic substances (MPBTs) such as PFAS. o Support legislation that will eliminate non-essential PFAS uses to reduce and mitigate PFAS in everyday consumer goods. • Environment/Climate Mitigation o Support and participate in Integrated Regional Water Management planning efforts in the Santa Ana River watershed. o Oppose restrictive and redundant regulatory requirements for biosolids. o Support the creation of a Statewide Organics Management Plan that includes the beneficial reuse of biosolids, education, market expansion activities, and mandates to buy-back compost and other organics diverted from landfills. o Support efforts to reform the California Environmental Quality Act (CEQA) to streamline current procedures and regulations for projects to refurbish or replace existing infrastructure facilities. o Actively monitor the Little Hoover Commission hearings and reports related to climate change adaptation, special districts, and other topics as it relates to OC San. • Water Reuse o Oppose legislation that would directly or indirectly impair GWRS’s ability to effectively recycle all reclaimable flows. o Support the inclusion of recycled water credits during the continued development and implementation of long-term water conservation legislation and regulations. o Monitor legislation and regulations on direct potable water reuse such as GWRS and/or other potential DPR-related issues (e.g., Direct Potable Reuse Regulations (SBDDW-23-001)). • Source Control o Support legislation and/or regulations that restrict the non-essential use of microplastics and contaminants of emerging concern in any product that is disposed of or has the potential to be introduced into the sanitary sewer system. o Support the reduction/elimination of Contaminants of Emerging Concern (CEC) such as Per- and polyfluoroalkyl substances (PFAS), microplastics, pharmaceuticals and personal care products (PPCPs), pesticides and endocrine disrupting chemicals (EDCs) within consumer and commercial products. o Support legislation or regulations that discourage the flushing of wipes through the sewer system, unless they meet certain performance standards. o Monitor legislation and regulations that limit PFAS in industrial wastewater. • Local Government 9 o Support the State’s efforts to increase the effectiveness and efficiencies of Local Agency Formation Commissions. o Oppose state mandates, regulations, or legislation that set, alter, or otherwise modify the governance structure of special districts, joint powers authorities, or other local government entities. Local Priorities • Funding/Finance o Explore opportunities for collaborative partnerships with other agencies that can realize cost savings/economies of scale. • Local Government o Continue the General Manager’s outreach to leadership at each OC San member agency and explore opportunities to work collaboratively with other agencies, including South Orange County Wastewater Authority (SOCWA). 10 Appendix A. Federal Tactics B. State Tactics C. Local Tactics D. Legislative and Regulatory Policies E. State, Federal and Regulatory Processes Appendices 11 Federal Tactics Initiative Action 1. Identify and advise on federal funding opportunities for OC San infrastructure projects • Schedule meetings with federal agency stakeholders and senior officials in Washington, D.C. and district offices to build support for OC San priority projects. • Work with congressional delegation to update priority needs. • Develop white papers to justify requested assistance through direct grants. 2. Seek funding assistance to advance recovery of energy and other resources from biosolids and other organics such as food waste • Meet with federal agency officials to review OC San’s needs and to discuss funding opportunities and options related to the energy water nexus. • Work with EPA and other agencies to advance energy and water efficient technologies related to smart water technologies and WaterSense grant program. 3. Seek Infrastructure assistance A. Robust funding of SRF and revise SRF Allocation Formula B. Innovative Financing C. Regulatory Streamlining • Meet with congressional delegation and key congressional committees. • Develop priorities and disseminate to OC San’s congressional delegation. • Advocate before congressional infrastructure committees and applicable Executive Branch officials to secure adoption of alternative water infrastructure financing including credit, loans, public-private partnerships and grants in addition to direct grants assistance. • Work to ensure expedited National Environmental Policy Act and related reviews and approvals. • Work with Congress and U.S. Bureau of Reclamation on proposals to provide enhanced alternative water infrastructure financing tools and seek opportunities to testify before Congress. 4. Support tax reform that protects public agencies • Work with NACWA and CASA in support of unrestricted use of tax-exempt financing and feasible innovative financing approaches such as infrastructure banks to supplement traditional funding approaches. • Work with state and local government stakeholders to restore state and local tax deductibility and advocate before congressional delegation. • Present or submit testimony. • Transmit communications on tax-exempt financing. Appendix A 12 5. Support resiliency legislation, regulations, and policies that support protection of OC San’s investments and promote water and biosolids recycling assistance • Work with delegation and regulators to ensure incorporation of new programs for water and biosolids recycling assistance. • Work with NACWA, CASA, and ACWA to support resiliency water and biosolids recycling legislation and regulations. • Work with congressional infrastructure committees to secure assistance for resiliency projects. 6. Work with federal agencies on permitting issues • Work with U.S. Fish and Wildlife Service on environmental site assessment issues such as incidental take permits under Endangered Species Act (ESA) • Advocate current Administration and Congress to advance commonsense permitting processes and programmatic permits issued by the EPA and the U.S. Army Corps of Engineers to reduce ratepayer costs. • Advocate to authorize EPA to provide NPDES permits terms for a period of up to 10 years and to retain a five-year administrative extension authority. • Continue to work with EPA advocating opposition of restrictive air quality requirements in Title V permits such as Affirmative Defense Provisions. 13 State Tactics Initiative Action 1. Develop a proactive legislative and regulatory advocacy agenda • Identify legislation that has the potential to benefit or impact OC San, as legislation is introduced and amended. • Identify proposed state and local regulations that are introduced that have the potential to benefit or impact OC San. • Recommend positions on identified legislation and proposed regulation to align with OC San’s Legislative and Regulatory Plan. • Create and continually update a legislative and regulatory matrix to track identified pieces of priority legislation and proposed regulations. • Schedule advocacy days in Sacramento as needed with legislators and committee staff and regulators. • Continue an active comment letter writing campaign to support or oppose priority legislation and proposed regulations. • Schedule meetings with legislators, regulators, stakeholders, and senior officials in Sacramento and district offices as needed to build support for OC San priority projects. • Participate in CASA’s legislative committees and Regulatory Workgroup and CWSC’s air quality, water issues, collection systems, biosolids, and wastewater pretreatment committees. 2. Compile a comprehensive list of Capital Improvement Projects to reference for soliciting future funding opportunities • Meet with management to discuss future capital projects and priorities. • Match capital improvements with funding opportunities based on project eligibility. 3. Monitor and advise on possible funding opportunities, including, but not limited to, funding through Statewide bonds • Proactively engage in the drafting of grant funding guidelines and provide input to drafting agency or committee to ensure eligibility and competitiveness of OC San’s projects and priorities. • Proactively engage on proposed legislation and regulations that would have an impact on the implementation of funding programs. • Identify funding opportunities and provide recommendations for eligible projects. Create an advocacy and outreach schedule on the planning and execution of efforts to seek funds. Appendix B 14 4. Monitor and advise on funding available through Cap and Trade • Monitor the rollout of the Cap-and-Trade Expenditure Plan for waste diversion projects. Continue to advocate for additional funding in future Cap-and-Trade Expenditure Plans that OC San is eligible for. • Identify eligible and competitive projects and programs. • Create a schedule on planning and execution of efforts to seek funds, including outreach and advocacy strategy. 5. Monitor and advise on energy or other resource recovery related funding opportunities • Track energy related grant opportunities. • Identify potential projects for funding, including, but not limited to, alternative renewable energy, biogas, biosolids to energy conversion, organic waste (high strength food waste and fats, oils, and grease) to energy conversion, and greenhouse gas (GHG) reduction projects. • Ensure wastewater interests are protected as significant decisions are made related to renewable energy production financing, mandates, climate change goals, programs, and continued efforts to extend the state’s emissions reduction target. • Schedule meetings with local delegation as well as key members to discuss project benefits and funding opportunity. • Support initiatives that help OC San strive for energy independence by minimizing energy utilization and maximizing useful energy recovery from the sewage it receives. • Support fair and reasonable regulations for the pipeline injection of biomethane produced from anaerobic digestion • Support renewable energy initiatives that are reasonable and fair. 6. Schedule and attend advocacy and outreach meetings to provide OC San project updates • Educate current administration, key staff, and agencies as needed on priority projects and advocate for funding allocations that align with OC San’s priorities. • Schedule stakeholder meetings to build support for projects • Hold advocacy meetings in coordination with funding opportunities and project timelines. • Work with relevant budget committees, budget sub-committees, policy committees and their staff to advocate for funding allocations that align with OC San’s priorities. • Provide full briefings and updates to Orange County’s legislative delegation and relevant members as needed on OC San’s priority projects. 7. Advocate for legislative and regulatory support to allow for non-reclaimable discharge such as brine • Outreach with the California Environmental Protection Agency, Department of Toxic Substances, State Water Resources Control Board, Regional Water Quality Control Board, the governor's office, legislative leadership, and other appropriate stakeholders. 15 8. Advocate for the development and implementation of a statewide biosolids land application management policy • Work in conjunction with CASA, CWSC, etc. to reach to and educate legislators and regulators to develop an advocacy strategy for regulatory framework that will support statewide objectives to manage biosolids land application. 9. Advocate for legislation to relieve OC San of cumbersome and outdated bid advertising costs • Work with relevant legislators and committees to draft legislation that will lessen the cost burden on OC San rate payers of complying with outdated bid advertising requirements. • Conduct outreach with various other sanitation districts/publicly owned treatment works (POTW’s) across the State to form a coalition to support any efforts. 10. Advocate for legislation to raise the contracting and bid threshold for OC San • Meet with local labor groups to initially present the issue. • Brainstorm proposed solutions that will give OC San and other sanitation district’s/POTW’s more flexibility to complete small scale public works projects in house. • Work in conjunction with CASA to outreach, educate, and develop an advocacy strategy that will target all sanitation districts/ POTW’s affected by the current threshold limitations. • Develop and advocate for legislation that will raise the threshold for work that can be performed in-house as well as work that is required to be bid. 16 Local Tactics Initiative Action 1. Continue to develop local government outreach and awareness of OC San • Monitor meetings of relevant agencies and jurisdictions, including the Orange County Board of Supervisors, various City Councils and special districts, and prepare talking points and messaging for public hearings and special events as needed. • Review local activity within Orange County for the purpose of advising OC San of those items that may affect OC San policy, programs, or budget. • Facilitate and participate in meetings with members of other relevant public agencies, and their management staff. • Facilitate and participate in meetings with key water industry stakeholders in Orange County and regionally. 17 Legislative and Regulatory Policies A. Air Quality: OC San is committed to complying with federal, state, and local air quality laws, rules, regulations, and policies. a. Advocate for air quality legislation, regulations, rules, and policies that reduce permitting obstacles and promote the adoption of advanced air pollution control technologies by providing increased permitting flexibility and financial incentives. b. Advocate for air quality measures that maintain and enhance local decision-making authority, where appropriate, in the development and implementation of air quality attainment strategies. c. Advocate for air quality legislation and regulations to ensure greater consistency between the California and Federal Clean Air Acts. d. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals. e. Advocate for air quality regulatory and legislative changes that allow exemptions from CARB's medium and heavy-duty clean air requirements for critical wastewater response vehicles, such as Assembly Bill 1594. f. With respect to CARB’s Advanced Clean Fleets Regulation and the restrictions imposed on the vehicles subject to these purchase requirements, support legislation that will include emergency response vehicles owned/operated by essential public services in the definition of “Emergency Vehicles” in CVC section 165. g. Oppose air quality regulations that mandate specific fuel types or neglect the significant benefits of renewable fuels. h. Oppose air quality policies, rules, and regulations at Title V facilities that disregard the role wastewater treatment as an essential public service. i. Oppose redundant and unreasonable air quality requirements, such as double reporting requirements, with respect to emissions reporting associated with AB 617 (2017), the Community Air Protection Program. j. Oppose South Coast Air Quality Management District (SCAQMD) policies, rules, and/or regulations on Cumulative Impacts from Air Toxics for CEQA Projects. Monitor SCAQMD for proposed changes to risk mitigation procedures, public notification threshold requirements, R1401 limits, analysis to criteria pollutants, and GHG impacts. Appendix C 18 k. Oppose federal, CARB, and SCAQMD policies, rules, and/or regulations that promote the use of technologies that are unvetted, have scalability issues, or can’t be manufacturer guaranteed such as certified, backup emergency power equipment with automatic shutoff inducement. l. Adhere to OC San’s odor policy and level of service to assure OC San is a good neighbor to the surrounding communities. m. Monitor, participate, and engage in the development of any updates to the federal National Emission Standards for Hazardous Air Pollutants (NESHAP) and New Source Performance Standards (NSPS) applicable to POTW’s, process Boilers, and Reciprocating Internal Combustion Engines (RICE) located at an area source. n. Monitor SCAQMD’s Priority Reserve Bank for impacts transcending from the sunsetting of the Regional Clean Air Incentives Market (RECLAIM) program. Oppose any rules proposing to cease or limit future emission reduction credit deposits into the Priority Reserve bank. o. Monitor and oppose any air quality legislation or SCAQMD regulations requiring fence-line monitoring for pollutants of concern, including hydrogen sulfide, at POTW’s having a design capacity ≤ 425 MGD. p. Monitor air quality legislative and regulatory developments in response to State’s goal of achieving Carbon Neutrality including the Advanced Clean Fleets and the Zero-Emission Forklift Fleets regulations pertaining to the electrification of engine- driven equipment and fleets. Oppose measures that require special districts and local governments to be early adopters of this unproven technology. q. Monitor SCAQMD’s development of regulations and guidelines associated with AB 617 in the following areas: (1) implementation of best available retrofit control technology (BARCT) requirements for existing stationary sources; (2) deployment of air monitoring systems in selected communities; (3) implementation of emissions reduction plans in selected communities. r. Monitor SCAQMD’s development of rules and policies, such as Rule 317.1, that will require major stationary sources such as OC San and other publicly owned wastewater facilities to pay for the region’s inability to achieve attainment with the federal 8-hour ozone standards pursuant to Section 185 of the CAA. s. Monitor SCAQMD’s development of rules and policies associated with the electrification of combustion-fired equipment. t. Monitor SCAQMD’s development of rules and policies associated with the potential elimination or imposed limitation on emergency standby internal combustion engines under proposed Rule 1110.4. 19 u. Obtain grant funding through programs such as the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) and the VW Mitigation Trust, as deemed eligible, for zero-emitting vehicles and equipment and any necessary infrastructure to support those emerging technologies. v. Participate and engage in associations efforts to work with CARB and the local air districts in the implementation of the updated AB 617 (2017), the Community Air Protection Program, the Regulation for the Reporting of Criteria Air Pollutants & Toxic Air Contaminants (CTR), AB 2588 Air Toxics “Hot Spots” Programs, and the SCAQMD’s 2022 AQMP. w. Participate and engage in SCAQMD’s implementation of the provisions adopted in the 2022 AQMP. Oppose potential measures in future AQMP’s that place additional burdens to resource recovery operations generating renewable energy. x. Monitor and support any legislative development which would provide a relief on the use of diesel emergency power generators during State of Emergency events and Public Safety Power Shutoff (PSPS) events impacting the local electrical utility. B. Biosolids, Organics and Biogas: OC San strives for the beneficial reuse of biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment. a. Support legislation, regulations, and policies that support the beneficial reuse of biosolids on agricultural lands, landscape, horticulture, California Healthy Soils Initiatives, mine reclamation, fire ravaged lands, superfund sites, brownfields, overgrazed lands, carbon sequestration, and wetland restoration. b. Support the promotion and funding of local pilot programs, studies, and research for the beneficial use of biosolids. c. Oppose legislation, regulations, and policies that impose unreasonable new rules, guidance or bans that restrict the use of biosolids for land application in any region, county, or state. d. Support alternative renewable energy legislation, regulation, and policies that encourage use of biosolids as a renewable energy resource. e. Support responsible local reuse of community-generated organics, not limited to biosolids compost and biogas. f. Support streamlined legislation, regulations, and policies that encourage the procurement of biogas, biosolids, and compost. g. Support CalRecycle, CARB, California Public Utilities Commission, (CPUC), California Energy Commission (CEC), California Department of Food and Agriculture (CDFA), and SWRCB in adopting quality standards that permit wastewater treatment plants to inject biogas production into current pipelines for renewable utilization. 20 h. Support compost associations and local cities and agencies in education, market expansion activities, and meeting mandates to buy-back compost and other organics diverted from landfills. i. Limit redundant reporting requirements on organics, recyclable material, and solid waste. j. Support development and funding for organic co-digestion and recycling projects in accordance with SB 1383 or other associated rules and regulations. k. Support efforts to provide alternative management and/or funding options for biosolids, such as supercritical water oxidation, deep well injection, pyrolysis, and/or future biosolids/biogas projects. C. Source Control: OC San supports legislation that reduces pollutants and harmful materials that could enter the sewer system. a. Support statewide or targeted public education programs and initiatives that teach appropriate “What To Flush” practices and fats, oils, and grease management. b. Support federal policies and legislation that regulates the disposal of flushable wipes to ensure clarity on the definition of “flushable.” c. Support legislation, regulations, and funding assistance that would lead to decreased introduction of microplastics, and other contaminants of concern discharged into the sewer system. d. Support legislation and funding mechanisms that reduce the amount of trash, waste, chemicals, and harmful organic material that enter the sewer system. e. Support legislation that would create forever homes for forever chemicals. f. Oppose regulations or legislation that would place the responsibility of addressing PFAS as a class of constituents on the public treatment plants. g. Support funding opportunities for clean-up costs from the manufacturers of PFAS and through state grants and low-interest loans. h. Support the reduction/elimination of Contaminants of Emerging Concern (e.g., PFAS) within consumer and commercial products. D. Grant Funding: OC San is committed to advancing the state of knowledge in the treatment and management of wastewater through the application of innovative and alternative technologies. To this end, OC San supports grants assistance to offset its research, special projects, and capital improvement projects. a. Support legislation, bonds, programs, and projects that provide funding for: infrastructure construction and rehabilitation, special studies and research or projects relating to security, environmental education, water quality, wastewater processing, urban runoff, wastewater recycling, biosolids and organics management, water quality improvement, resource recovery, or alternative energy. 21 b. Support projects that provide for public benefit over projects that are primarily intended for private benefit or gain. c. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. d. Support regional collaboration and funding for public agencies for food waste co-digestion and recycling projects. E. Innovative Funding: OC San is committed to supporting programs that provide the highest quality services to its ratepayers. a. Support programs to leverage federal assistance such as credit assistance and highly subsidized loan assistance. b. Support Public-Private Partnerships, Public-to-Public, and other financing approaches that can reduce costs only if such projects do not impose costs on OC San ratepayers. c. Support the full funding of the Clean Water Act- SRF Program. d. Seek federal assistance to support water conservation projects such as water recycling, green infrastructure through the Water Infrastructure Finance and Innovation Act (WIFIA), and direct grants to reduce project costs. e. Seek state and/or regional incentive funding opportunities available to offset the regulatory mandates to transition combustion-fired vehicles and equipment to zero emission technologies (e.g. battery electric, heat pumps, and hydrogen fuel cells). F. Labor Relations/Human Resources: OC San is committed to employer-employee relations including, but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. As Congress considers reforming the federal tax code, many of the provisions subject to reform may impact labor relations. a. Support measures to reform current workers compensation formulas that rely on a proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. 22 e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. f. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting essential public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. i. Oppose overreaching and costly mandates that require non-necessary disclosures to employees. j. Oppose legislation and regulations that force OC San to adjust paid and unpaid leave time parameters. G. Security: OC San is committed to the safety of all personnel, facilities, and the entire sewer system. a. Support legislation that would create efficiencies around the retention policy of surveillance video recordings. b. Support policies that address cybersecurity needs of wastewater agencies, including Supervisory Control and Data Acquisition. c. Support funding assistance to ensure employees remain safe and secure during global pandemics. d. Support funding for the hardening of essential regional facilities such as water recycling and sewer collection and recycling sites. e. Support legislation and funding for regional emergency management collaboration to protect critical infrastructure. H. Planning: OC San ensures the long-range planning of capital improvement programs in order to deliver the highest quality facilities. a. Support reform of existing state, regional, and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional, sub-regional, or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. 23 e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments’ sub-regional process. I. Public Health: Protection of public health is OC San’s core mission. OC San will work cooperatively with county and state health officers to assure local health protection. a. Support hazard mitigation, emergency response, planning, and recovery through direct legislation, policy directives, and funding toward floodplain security within the Santa Ana River watershed. b. Support funding assistance to ensure employees remain safe and secure during global pandemics. c. Support (generally) measures that provide for improved public health through regulation. d. Support the protection of public health and environment through the construction and implementation of advanced wastewater treatment technology. e. Support sharing critical information and data from state and county agencies in the interest of protecting the public health and saving taxpayer dollars. f. Monitor legislation that provides additional occupational safety and health standard requirements for employees, contractors, or subcontractors. J. Public Works: OC San is committed to the successful completion of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers. a. Support measures that provide funding and support to POTWs and sewage collection systems. b. Support legislation and regulation that allow public agencies to procure goods and services in manners similar to private industry, thereby reducing overall costs of delivery. c. Support legislation and regulation that improve the Utility Underground Service Alert Program to improve coordination, identification, minimize damage, minimize environmental risks, and minimize cost exposure to publicly owned facilities when contractors are performing sub- surface work. d. Support a comprehensive response to the state’s electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure (i.e. emergency and standby generators) exists that could be employed temporarily during periods with minimal air quality impact and protects ratepayers against dramatic rate increases and statewide power outages. e. Support legislation and regulation that allows OC San to utilize the Best Value Design Build, Progressive Design Build and Construction Manager at Risk Design Build option for the construction of public works projects. f. Oppose Buy American mandates legislation that would increase project costs or prevent the use of the most innovative technologies. 24 g. Monitor legislation that would require the inspection and possible repair of sewer laterals at the time of sale in residential, commercial, and industrial areas. h. Monitor legislation connected with government claims against special districts regarding risk and wrap-up insurance. i. Support legislation that increases the thresholds for bid work and force account work. K. Tax Reform/Revenue and Taxation: Track pending legislation to ensure OC San remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. a. Support measures leading to a greater financial independence from the state that would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that shift existing local revenue sources back to the state, including the special district share of property tax, sales tax, vehicle license fees, and ratepayer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible, particularly the courts, health, and welfare programs. f. Preserve state and local tax deduction from federal tax liability of local taxpayers. g. Oppose elimination or restriction on the availability of municipal tax-exempt financing for public infrastructure projects. h. Monitor legislation regarding changes in law that influence the fees and charges that OC San facilitates. i. Support legislation that would exempt vital treatment chemicals for water and wastewater agencies for the sole purpose of water recycling from sales and use tax. L. Special Districts: OC San supports the maintenance of special districts to provide specific services, in response to citizen’s demands, in a cost-effective manner. a. Support efforts to provide equitable treatment of special districts in emergency funding assistance. b. Support outreach to local, regional, and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long- term operation of water and wastewater agencies. 25 c. Support the work of the ACWA, CASA, and CSDA etc. in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members’ reserves. d. Oppose further state regulations that adversely impact special district financing, operations, and administration. e. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. f. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. g. Oppose the imposition of unfunded, mandated programs on local governments. h. Oppose efforts that diminish OC San’s ability to govern efficiently and effectivelyOppose efforts that remove the flexibility of the Board to determine its own size and operating structure i. Support alternate methods of public meetings notices that maintain transparency but are more cost efficient and technologically advanced. j. Support maximum flexibility for special districts to conduct Board business virtually while providing for public transparency. k. Support legislation that gives local control on video retention guidelines to special districts to maintain maximum flexibility and cost control. M. Water Quality and Supply: OC San is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. a. Support (generally) measures to increase water supply and improve water quality in the region, including drought relief legislation and regulations. b. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and the OC San to create new water supplies through wastewater recycling. c. Support measures that promote and provide for the use of reclaimed water. d. Support measures that promote legislation similar to AB 2022 (Gordon), allowing the bottling of GWRS water for educational outreach. e. Support policy development, funding, and research for addressing urban runoff, stormwater, and beach closures, including funding for studies that identify the sources of nutrients (e.g., ammonia, nitrates, etc.) and bacterial, viral, and other microbial contaminants and human pathogens. f. Support measures to evaluate water quality standards, as needed, to ensure the objectives are appropriately protecting the designated use. 26 g. Support legislation and regulation that would direct EPA levied fines to remain in the region. h. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects, including integrated permitting approaches that can reduce costs and achieve water quality improvements while allowing permits to be tailored to the needs of Orange County and its watershed. i. Support national infrastructure policies that contain aspirational goals which promote improved water use efficiency in construction of water efficient buildings and communities. j. Support legislation and regulation that promote improved water use efficiency through state assistance in evaluating and implementing new programs and technologies and increasing public awareness of water use efficiency. k. Support legislation and regulation that provide for the development of the watershed approach, including watershed management plans and watershed-based permitting. l. Support legislation and regulation that necessitate the responsible use of water in residential, commercial, and industrial areas. m. Support streamlined environmental guidelines and regulations which would safeguard the region, providing increased protection and lesser costs to ratepayers. n. Oppose the imposition of statewide fees for environmental cleanup that is caused through private sector actions or are regional in nature (e.g., when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). o. Support approaches to reduce compliance costs associated with stormwater controls including the use of integrated plans. p. Monitor state and federal legislation and regulations related to Contaminants of Emerging Concern (e.g., PFAS, etc.). 27 Legislative and Regulatory Process Flow Chart Appendix D State Bill is introduced FLOOR ACTION Committee Hearings COMMITTEE HEARING If passed without amendments If passed with amendments If original house concurs Returned to original house Floor Action If passed (Sent to other house) BILL GOES TO GOVERNOR If not vetoed MOST BILLS BECOME LAW JANUARY I OF THE NEXT YEAR 28 Federal HOW A BILL BECOMES A LAW .. ••• --- t If either house does not approve the Bill, they can either send it back to the Committee or reject it. l Once both houses of Congress receives the vetoed bill, they have three options: I They can change the Bill mo re to the President's liking. They can agree the Bill will never be passed and reject it They can vote to override the President's veto. The vetoed Bill goes back to Congress. BILL IS VETOED The Bill is referred to the Committee. If approved it goes to Congress for review . CONGRESS ... If one house of Congress approves the Bill, it goes to the other house and vise-versa If both houses approve the Bill, it goes the President of the United States who decides to either sign the Bill or veto the Bill BILL J L / ' ti l !i BECO~! '- 29 Regulatory LEGISLATURE GRANTS AUTHORITY TO ADOPT REGULATIONS TO STATE AGENCY INFORMAL j ROC Stakeholder Engagement Prior to Formal Rulemaking J A-STATE JlLL.AGENCY FORMAL -4 __ J CRO~ ss 7 Fact Finding through series of multiple meetings • Address Concerns Initial Stage of Shaping Proposed Language PUBLICATION AND ISSUANCE OF NOTICE OPENS RULEMAKING RECORD No Changes or Nonsubstantial and Sufficiently Related Rulemaking agency transmit a rulemaking action to the Office of Admin. Law for review within one year from the date the notice was published in the California Regulatory Notice Register OAL AppFOYH Disapproves the rulemaking action ~ Major Changes: 8 Agency Receives and Considers Comments New 45-Days Updated Informative Digest Final Statement of Reasons (with summary and response to comments) Final Text of Regulations l l ] Relevant State Agency Interactions with OC San CalEPA Department of Toxic Substance Control AGENCY ADOPTS REGULATION Department of Pesticides CalRecycle (Department of Resources Recycling and Recovery) Office of Environmental Health Hazard Assessment State Water Resources Control Board including Regional Boards 1-9 Rulemaklng Record Closed ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4560 Agenda Date:11/12/2025 Agenda Item No:4. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: 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, 2025. BACKGROUND Included in this consolidated report are the following quarterly financial reports for the period ended September 30, 2025: ·First Quarter Budget Review The Budget Review Summary provides the Directors, staff, and general public with a comprehensive overview of the financial results of the Orange County Sanitation District (OC San) through the first quarter ended September 30, 2025. ·First Quarter Certificates of Participation Report The report includes a summary of each outstanding debt issuance. RELEVANT STANDARDS ·Quarterly financial reporting ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·First Quarter Financial Report for period ended September 30, 2025 Orange County Sanitation District Printed on 10/31/2025Page 1 of 1 OC6SAN ORANGE COUNTY SANITATION DISTRICT Orange County, California for the period ended September 30, 2025 FIRST QUARTER FINANCIAL REPORT Orange County Sanitation District oc~s Table of Contents Executive Summary ...................................................................................................................... 1 Budget Review Section 1 – Consolidated Financial Reports .......................................................................... 1 Section 2 – Operating Budget Review Chart of Cost per Million Gallons by Department ..................................................... 1 Chart of Collection, Treatment, & Disposal Expenses by Major Category ............... 1 Divisional Contributions to Cost Per Million Gallons ................................................ 2 Comparison of Expenses by Department ................................................................. 3 Summary of Collection, Treatment, & Disposal Expenses by Major Category ......... 4 Summary of Revenues ............................................................................................. 5 Summary of Collection, Treatment, & Disposal Expenses by Line Item .................. 6 Summary of Collection, Treatment, & Disposal Expenses by Process .................... 8 Chart of Staffing Trends ........................................................................................... 9 Section 3 – Capital Improvement Program Budget Review Chart of Capital Improvement Program By Process Area and Project Driver .......... 1 Summary of Capital Improvement Construction Requirements – Current Year ....... 2 Summary of Capital Improvement Construction Requirements – Project Life ......... 6 Section 4 – Capital Assets Schedule & Debt Service Budget Review Capital Assets Schedule .......................................................................................... 1 Debt Service Budget Review .................................................................................... 1 Section 5 – Self Insurance Budget Review General Liability and Property Fund Budget Review ................................................ 1 Workers’ Compensation Fund Budget Review ......................................................... 2 Certificates of Participation (COP) Report .................................................................................... 1 FY 2025-26 First Quarter Financial Report This Page Intentionally Left Blank Executive Summary Page 1 Consolidated Financial Reports For the First Quarter Ended September 30, 2025 Included in this consolidated report are the following quarterly financial reports for the period ended September 30, 2025:  Budget Review: The Consolidated Financial Reports Section 1 provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Orange County Sanitation District (OC San) through the first quarter ended September 30, 2025. Contained within the Budget Review Sections 2 through 5 is the budget-to-actual status of the Collection, Treatment and Disposal Operations, Capital Improvement Program, Debt Service, and Self-Insurance Program. Also included is a Capital Assets Schedule as of September 30, 2025. The chart below provides for a summary of these activities. Various detail information can be found in this report. Below is a descriptive summary of these activities through September 30, 2025: a) Most major expense categories are anticipated to approximate budget. b) Total revenues are at 5.2 percent of the $578.6 million budget, mainly due to the timing of property tax and sewer fee distribution from the County that occurs mostly after the first quarter. These two revenue sources make up 100% 75% 50% 25% 0% First Quarter Results as a Percentage of Budget $30.0M $61.7M • Operating Operating Revenue Expense $52.3M Capital Outlays I $7.1M I Debt Service $1.4M Self Insurance FY 2025-26 First Quarter Financial Report Page 2 83.7 percent of OC San’s total budgeted revenue. Other, less material revenue sources in comparison that are tracking significantly lower than the proportionate budget through September 30 include Intra District Sewer Use-IRWD, and Other Revenues. Overall, total revenues are projected to approximate budget at year-end. More detailed information on revenues is provided within Section 1 – Pages 3 through 5. c) Collection, Treatment and Disposal Costs: As indicated within the Consolidated Financial Reports Section of this report, the net operating requirements through the first quarter of $61.7 million is currently tracking at 25.0 percent of the $246.4 million budget. In addition, net operating expenses have increased $6.2 million or 11.2 percent in comparison with the same period last year. Overall, staff expects the total operating costs to approximate budget throughout the remainder of the year. More detailed information on operating expenses is provided within Section 1 – Pages 1 through 3. The total cost per million gallons is $3,599 based on flows of 186 million gallons per day. This is $50 per million gallons, or 1.4 percent less than the budgeted cost per million gallons per day. A further description of these costs and benchmarking with other agencies is contained within Section 1 – Pages 6 through 8. d) The total projected capital outlay cash flow of the Capital Improvement Program (CIP) for FY 2025-26 has been revised to $271.2 million, or 106.6 percent of the board approved cash outlay of $254.3 million. The actual cash outlay spending through the first quarter is $52.3 million, or 20.6 percent of the total budgeted outlay. More detailed information on the CIP budget review can be found in Section 1 – Page 9 and Section 3.  Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance. Consolidated Financial Reports Section 1 - Page 1 First Quarter Financial Report September 30, 2025 The Financial Management Division is pleased to present the FY 2025-26 first quarter financial report. This report provides a comprehensive overview of the financial activities of the Orange County Sanitation District (OC San) and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. Operating Budget Review: This section reports on collection, treatment, and disposal net operating requirements. At September 31, 2025, 25.0 percent, or $61.7 million of the FY 2025-26 net operating budget of $246.4 million has been expended. Net operating expenses increased from the same period last year by $6.2 million, or 11.2 percent, mainly due to an increase of $3.2 million in Salaries and Benefits, $2.1 million in Repairs and Maintenance, $383,000 in Operating Materials and Supplies, $346,000 in Professional Services, $313,000 in Other Operating Supplies, $188,000 in Utilities, $186,000 in Research and Monitoring, $107,000 in Administrative Expenses, and $94,000 in Contractual Services, partially offset by an increase of $574,000 in indirect costs allocated out to capital projects and a decrease of $72,000 in Training & Meetings. These and other variances that factor into this net increase in expenses are discussed in more detail below. Overall, staff expects the total operating costs to approximate budget through the remainder of the year. At September 30, 2025, 5.2 percent, or $30.0 million of the FY 2025-26 budgeted total revenues of $578.6 million has been recognized. Revenues decreased from the same period last year by $5.8 million, or 16.3 percent, mainly due to a decrease of $14.0 million in Interest Earnings, partially offset by an increase of $2.6 million in CIP Reimbursements, $2.2 million in Capital Facilities Capacity Charges, $2.1 million in Permit Fees, $748,000 in Capital Assessments-IRWD, $179,000 in Intra District Sewer Use-IRWD, $115,000 in Other Revenues, $52,000 in Property Taxes, $47,000 in Other Sales, and $39,000 in Service Fees. These and other variances that factor into this net decrease in revenues are discussed in more detail below. Overall, staff expects the total revenues to approximate budget at the end of the fiscal year. Significant operating results as of September 30, 2025, include the following:  Salaries, Wages and Benefits – Personnel costs of $32.1 million are on target at 24.5 percent of the budget through the first quarter of FY 2025-26. The budget is based on a five percent vacancy factor, and staffing is 28 full-time equivalents (FTEs), or 4.2 percent below the total 664 FTEs approved in the FY 2025-26 budget. Salary and benefit costs are $3.2 million, or 11.0 percent higher than the $28.9 million incurred in the same period last year, mainly due to an increase of $2.5 million in Salaries and Wages, $280,000 in Retirement, $211,000 in Employee Supplemental Benefits, $185,000 in Group Insurances, and $33,000 in Workers’ Compensation, partially offset by a decrease of $59,000 in Uniform Rental. Net FY 2025-26 First Quarter Financial Report Section 1 - Page 2 operating personnel costs are expected to approximate budget throughout the remainder of the year.  Administrative Expenses – Administrative Expenses totaled $760,000, or 27.4 percent of the $2.8 million budget through September 30. These costs are $107,000, or 16.3 percent higher at September 30 in comparison with the prior year, mainly due to an increase of $106,000 in Memberships, and $30,000 in Small Computer Items, partially offset by a decrease of $30,000 in Minor Furniture & Fixtures. It is anticipated that administrative costs will approximate budget at year-end.  Printing and Publication Expenses – Printing and Publication Expenses totaled $65,000 or 16.6 percent of the $391,000 budget through September 30. These costs are $14,000, or 28.5 percent higher at September 30 in comparison with the prior year, primarily due to an increase of $7,000 in Notices & Ads and $5,000 in Repro-In-House. Printing and publication costs are expected to approximate or be below budget at year-end.  Training and Meetings – Training and meetings of $284,000 is below target at 13.2 percent of the $2.2 million budget through September 30. This account is lower than the proportionate budget due to the timing and need for training throughout the year. Compared to the same period last year, costs have decreased by $72,000, or 20.3 percent. Total training and meeting costs are anticipated to approximate or be below budget at year-end.  Operating Materials and Supplies – Operating materials and supplies of $7.8 million is on target at 24.1 percent of the $32.4 million budget through September 30. Operating Materials and Supplies is higher than the prior year by $383,000, or 5.2 percent, mostly due to an increase of $462,000 in Odor & Corrosion Control, $60,000 Safety Equipment/Tools, $22,000 in Gasoline, Diesel & Oil, and $16,000 in Tools, partially offset by a decrease of $132,000 in Chemical Coagulants, $34,000 in Lab Chemicals & Supplies, and $14,000 in Chemicals - Miscellaneous. Based on current processes, operating materials and supplies are anticipated to approximate budget at year-end.  Contractual Services – Contractual services is on target at $5.4 million, or 22.8 percent of the $23.8 million budget through September 30. Solids Removal costs, budgeted at $14.2 million, comprise the majority of this expense category at $3.4 million, or 24.2 percent of its budget at September 30. Contractual Services is higher by $94,000, or 1.8 percent over the same period last year, mainly due to an increase of $256,000 in Oxygen, $59,000 in Solids Removal, $31,000 in Other Waste Disposal, and $25,000 in Groundskeeping, partially offset by a decrease of $150,000 in Other Services, $77,000 in Janitorial, and $40,000 in Outside Lab Services. County Service Fees totaled only $2,000, or 0.4 percent of the $619,000 budget through the first quarter, as the preponderance of these fees are billed by the County in the fourth quarter. Total contractual services costs are anticipated to approximate budget at year-end. Consolidated Financial Reports Section 1 - Page 3  Professional Services – Professional services costs totaled $1.9 million, or 16.8 percent of the $11.3 million budget through September 30. Professional services costs, such as Legal, Environmental Scientific Consulting, Advocacy Efforts, and Other are proportionately low through September 30 due to a variety of factors such as timing of services and re-evaluation of need for services. These costs are $346,000, or 22.2 percent higher at September 30 in comparison with the prior year, mainly due to an increase of $204,000 in Other Professional Services, $132,000 in Engineering, $123,000 in Software Program Consulting, and $26,000 in Labor Negotiation Services, partially offset by a decrease of $89,000 in Legal, $41,000 in Environmental Scientific Consulting, and $29,000 in Audit & Accounting. It is anticipated that the costs for this category will approximate or be below budget at year-end.  Research and Monitoring – Research and monitoring costs totaled $900,000, or 41.4 percent of the $2.2 million budget through September 30. These costs are $186,000, or 26.1 percent higher at September 30 in comparison with the prior year, due to an increase of $214,000 in Air Quality Monitoring, and $17,000 in Research, partially offset by a decrease of $45,000 in Environmental Monitoring. Total research and monitoring costs are anticipated to be above budget at year-end.  Repairs and Maintenance – Repairs and maintenance costs totaled $13.3 million, or 35.3 percent of the $37.6 million budget through September 30. These costs are $2.1 million, or 18.3 percent higher at September 30 in comparison with the prior year, due to an increase of $1.6 million in Materials and Services and $461,000 in Service Maintenance Agreements. It is anticipated that the costs for this category will approximate or be slightly above budget at year-end.  Utilities – Utilities costs totaled $4.1 million, or 24.4 percent of the $17.0 million budget through September 30. These costs are $188,000, or 4.8 percent higher at September 30 in comparison with the prior year, primarily due to an increase of $79,000 in Power, $65,000 in Natural Gas, $20,000 in Telephone, and $17,000 in Water. It is anticipated that the costs will approximate budget at year-end.  Other Operating Supplies – Other operating supplies costs totaled $1.5 million, or 21.9 percent of the $6.7 million budget through September 30. Property and General Liability Insurance, budgeted at $3.9 million, comprise the majority of this expense category at $1.2 million. Overall, Other Operating Supplies is $313,000, or 27.1 percent higher at September 30 in comparison with the prior year, primarily due to an increase of $432,000 in Property and General Liability Insurance, and $8,000 in Miscellaneous Operating Expense, partially offset by a decrease of $134,000 in Regulatory Operating Fees. It is anticipated that other operating supplies costs will approximate budget at year-end.  Revenues – Service Fees and Property Taxes – Through September 30, revenues from Service Fees are at $64,000, or 0.0 percent of the $360.8 million budget and Property Taxes are at $2.0 million, or 1.6 percent of the $123.7 million budget. These items comprise the majority of OC San’s revenues and are mostly collected by the County through the property tax roll and distributed to OC San throughout the year based on a set distribution schedule that begins in November of FY 2025-26 First Quarter Financial Report Section 1 - Page 4 each year. The increase of $39,000, or 157.7 percent in service fee revenue over the prior year is primarily due to the timing of receipts. The property tax revenue increase of $52,000, or 2.7 percent over the prior year is mainly a result of the timing of supplemental tax receipts. These revenues are expected to approximate budget at year-end.  Revenues – Permit Fees – Permit Fees are at $6.2 million, or 37.1 percent of the $16.6 million budget. The revenues through the first quarter are higher than the same period last year by $2.1 million, or 51.9 percent, due to the fluctuation in the number of permittees from year to year as businesses establish or cease their operations and an increase in operation and maintenance charges based on flows received from these customers. Permit Fees revenues are expected to approximate or be slightly above budget at year-end.  Revenues – Inter District Sewer Use – SAWPA and SBSD – Inter District Sewer Use-SAWPA and SBSD are at $849,000, or 910.4 percent of the $93,000 budget. The budgeted amount was inadvertently reduced from $3.0 million in the prior year. This revenue is derived from charges to the Santa Ana Watershed Protection Agency (SAWPA) and Sunset Beach Sanitary District (SBSD) for treatment of flows. The revenues through the first quarter are lower than the same period last year by $651, or 0.1 percent, due to a decrease in operation and maintenance charges based on flows received from these agencies. These revenues are expected to be above budget at year-end.  Revenues – Intra District Sewer Use – IRWD – Intra District Sewer Use-IRWD are at $1.2 million, or 10.4 percent of the $11.2 million budget. This revenue is derived from charges to the Irvine Ranch Water District (IRWD) for treatment of flows. The revenues through the first quarter are higher than the same period last year by $179,000, or 18.2 percent, due to a decrease of $186,000 in interest income allocated to IRWD, partially offset by a decrease of $7,000 in operating and maintenance charges to IRWD. These revenues are expected to be below budget at year-end.  Revenues – Capital Assessments – IRWD – Capital Assessments-IRWD are at $1.6 million, or 16.5 percent of the $9.5 million budget. The revenues through the first quarter are higher than the same period last year by $748,000, or 91.0 percent, due to an increase in joint capital costs allocable to IRWD. These revenues are expected to approximate or be below budget at year-end.  Revenues – Capital Facilities Capacity Charges (CFCC) – CFCC are at $3.9 million, or 17.9 percent of the $21.7 million budget. The revenues through the first quarter are higher than the same period last year by $2.2 million, or 136.1 percent, due to an increase in supplemental capacity charges based on an increase in baseline overages and an increase in capacity charges collected from local agencies. These revenues are expected to be below budget at year-end.  Revenues – Interest Earnings – Interest Earnings are at $11.1 million, or 42.0 percent of the $26.5 million budget. The revenues through the first quarter are lower than the same period last year by $14.0 million, or 55.6 percent, due to the Consolidated Financial Reports Section 1 - Page 5 lower rate of return experienced in the current year. It is estimated that interest earnings will approximate or be approve budget at year-end.  Revenues – CIP Reimbursements – CIP Reimbursements are at $2.6 million and does not have a budget. This revenue is $2.6 million or 100.0 percent higher than the same period last year due to current year reimbursement of $2.6 million from Orange County Transportation Authority for FE18-13 Redhill Relief Sewer Protection at State Route 55.  Revenues – Wastehauler – Wastehauler revenues are at $162,000 and does not have a budget. This revenue is derived from fees charged to wastehaulers, allowing them to dump waste into OC San’s system. The revenues through the first quarter mirror those of the same period last year, with an increase of $4,000, or 2.6 percent.  Revenues – CNG Sales – CNG Sales revenues are at $35,000 and does not have a budget. This revenue is derived from public sales at OC San’s Compressed Natural Gas (CNG) fueling station. The revenues through the first quarter are lower than the same period last year by $10,000, or 22.0 percent, due to a decrease in compressed natural gas sales.  Revenues – Rents & Leases – Rents & Leases revenues are at $112,000 and does not have a budget. The revenues through the first quarter are higher than the same period last year by $13,000, or 13.2 percent.  Revenues – Other – Other revenues are at $195,000, or 2.3 percent of the $8.6 million budget. These revenues are $115,000, or 145.8 percent higher than the same period last year, primarily due to current year receipt of $109,000 from a battery storage energy management agreement. These revenues are expected to be below budget at year-end.  Revenues – Power Sales – Power Sales revenues are at $12,000 and does not have a budget. The revenues through the first quarter are lower than the same period last year by $9,000, or 42.8 percent, due to a decrease in the buyback of surplus generated energy exported to Southern California Edison. FY 2025-26 First Quarter Financial Report Section 1 - Page 6 Comparison of First Quarter Cost per Million Gallon Results with Budget Last Five Years As demonstrated in the preceding graph for the current and each of the last four fiscal years, the cost per million gallons at the end of the first quarter has been between 7.3 percent lower and 1.4 percent lower than the annual budget. The FY 2025-26 first quarter cost per million gallons of $3,599 is 1.4 percent lower when compared with this year’s budget. The increase in cost per million gallons of $404 from the previous year is primarily due to an increase in operating expenses, which are 11.2 percent higher than the same period last year, and by a decrease in flows, which are 1.3 percent lower than the same period last year. Staff believes that overall operating costs will be at or slightly below budget at year-end. The total cost per million gallons at September 30 is $3,599 based on flows of 186 million gallons per day. This is $50 per million gallons, or 1.4 percent less than the budgeted cost per million gallons of $3,649. The lower cost per million gallons is due to flows of 186 million gallons per day being 0.7 percent higher than the budgeted flow of 185 million gallons per day, which has an inverse relationship to the cost per unit of collection, treatment, and disposal, partially offset by net expenses being 0.1 percent higher than the proportionate budget through September 30. More detailed information on operating revenues, costs, and related information is provided within Section 2. $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 $3,400 $3,600 $3,800 21-22 22-23 23-24 24-25 25-26 $2 , 6 8 1 $2 , 9 7 9 $3 , 1 9 0 $3 , 4 4 6 $3 , 6 4 9 $2 , 5 4 2 $2 , 8 9 1 $3 , 0 4 1 $3 , 1 9 5 $3 , 5 9 9 Fiscal Year Budget First Quarter□ □ Consolidated Financial Reports Section 1 - Page 7 Following are data tables showing the last five years of Single Family Residential User Fees (SFR) and the cost per million gallons (MG) to collect, treat, and dispose of wastewater for the Orange County Sanitation District and similar agencies. The agencies used in the tables were determined to be those that most closely resembled OC San in terms of services provided and treatment levels. The summaries demonstrate that OC San’s SFR and cost per MG are each one of the lowest in their respective groups. 2021 2022 2023 2024 2025 Agency SFR SFR SFR SFR SFR Notes San Francisco 1,270$ 1,270 1,337 1,409 1,484 Vallejo Sanitation/Flood Control District 747$ 769 885 1,018 1,223 City of Los Angeles 636$ 636 636 736 959 (1) City of San Diego 573$ 687 714 742 765 (2) Central Contra Costa Sanitary District 660$ 690 697 725 754 Union Sanitary District 524$ 530 570 612 636 East Bay MUD 457$ 475 515 559 606 City of Hayward 446$ 463 495 530 574 Dublin San Ramon Services District 486$ 496 495 516 530 Sacramento County 444$ 444 444 486 528 Irvine Ranch Water District 313$ 357 399 441 521 (3) Oro Loma Sanitary District 318$ 342 368 423 487 Orange County Sanitation District 343$ 347 358 371 384 City of Fresno 309$ 309 309 309 309 (4) Los Angeles County 226$ 226 217 234 234 (5) Notes: (1) - Data represents the average SFR rate using approximately 9 hundred cubic feet per month. (2) - Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month. (3) - Data represents the usage of 10 hundred cubic feet per unit. (4) - Data represents the minimum SFR rate not including flow. (5) - Data represents the average service charge rates for the current fiscal year Benchmark Study Five-Year Single Family Residential Rate Rates as of July FY 2025-26 First Quarter Financial Report Section 1 - Page 8 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Agency Svc.Trt. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes San Francisco B 2 7,573$ 9,456 7,152 5,895 12,958 Vallejo Sanitation/Flood Control District B 2 8,682$ 9,108 9,595 6,280 9,154 (1) Union Sanitary District B 2 5,655$ 5,569 5,623 6,822 7,871 Central Contra Costa Sanitary District B 3 5,284$ 6,513 6,353 7,043 5,854 Sacramento County T 3 3,407$ 3,470 2,819 2,953 5,504 (2) City of San Diego B 3 3,977$ 4,219 4,263 4,450 5,213 East Bay MUD T 2 3,122$ 4,052 3,674 3,959 5,043 (3) City of Los Angeles B 3 3,021$ 2,763 3,120 3,625 3,718 Dublin San Ramon Services District B 3 3,441$ 3,570 3,406 3,889 3,528 Los Angeles County B 3 2,343$ 2,338 2,786 3,081 3,152 Orange County Sanitation District B 2 2,422$ 2,428 2,255 2,961 3,054 City of Fresno B 3 1,993$ 2,100 2,235 2,454 2,725 Legend for Service Provided and Treatment Level: B - Agency operates both collection and treatment facilities T - Agency provides treatment services but not collection 2 - Secondary treatment 3 - Advanced secondary or secondary with some tertiary treatment Notes: (2) - FY23-24 operating expense increased $160 million due to the merger of Sacramento Regional County Sanitation District and Sacramento Area Sewer District. (3) - FY23-24 operating expense increased $6.9 million. Benchmark Study Five-Year Cost per MG (1) - In FY22-23, a decrease in treatment cost is reported in Agency's Annual Comprehensive Financial Report (ACFR). Consolidated Financial Reports Section 1 - Page 9 Capital Outlay Review: As depicted by the preceding chart, Capital Outlays totaled $52.3 million, or 20.6 percent of the capital outlay cash flow budget for FY 2025-26 as of September 30, 2025. While the overall expenditures for the Capital Improvement Program are tracking with the proportionate budget through the first quarter, individual projects may experience significant fluctuations due to the various stages they are in throughout the year. The most significant deviations from the 25.0 percent target at September 30 include P2-128 TPAD Digester Facility at Plant No. 2 and 7-65 Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation, which are over the proportionate budget by $3.0 million and $2.7 million, respectively, and J-135 Central Generation Engine Overhauls at Plants No. 1 and 2, which is under the proportionate budget by $2.4 million. Overall, the capital outlay costs of the capital improvement program are expected to approximate $271.2 million, or 106.6 percent of the capital outlay cash flow budget at year-end. This will be monitored in the second quarter and any necessary budget adjustment will be presented for consideration with the presentation of the mid-year financial report. More detailed information on the capital improvement program is provided within Section 3. Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital Assets Schedule and Debt Service Section. This section shows the cost value of OC San’s capital facilities at September 30, 2025, as well as the debt service costs resulting from the need to provide funding for the construction of capital facilities. Principal payments on debt issues are due in February, during the third quarter of each fiscal year. As of September 30, 2025, no principal payments have been made. Interest $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 09/30/25 Actual Capital Outlay $52,347,088 Projected 2025-26 Capital Outlay $271,165,752 2025-26 Capital Outlay Cashflow Budget $254,276,633 FY 2025-26 First Quarter Financial Report Section 1 - Page 10 costs are expensed ratably throughout the fiscal year and are expected to approximate budget at year-end. Self-Insurance Budget Review: Section 5 is the Self-Insurance Section. Through September 30, the Self-Insurance Fund revenues totaled $1.3 million, or 23.7 percent of the budget, while expenses are at $1.4 million, or 21.4 percent of the budget. Separate fund accounting is used for recording the revenue and expenses incurred in managing these liability claims. The revenues to these funds represent charges to operating divisions. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. Operating Budget Review $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 Ge n e r a l M a n a g e r ' s Ad m i n i s t r a t i v e S e r v i c e s Co m m u n i c a t i o n s Hu m a n R e s o u r c e s En v i o r n m e n t a l S e r v i c e s En g i n e e r i n g Op e r a t i o n s & M a i n t e n a n c e Cost per Million Gallons by Department Budget and Actual September 30, 2025 Budget Actual $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 Sa l a r y & W a g e s Em p l o y e e B e n e f i t s Ad m i n i s t r a t i v e E x p e n s e s Pr i n t i n g & P u b l i c a t i o n Tr a i n i n g & M e e t i n g s Op e r a t i n g M a t e r i a l s & S u p p l i e s Co n t r a c t u a l S e r v i c e s Pr o f e s s i o n a l S e r v i c e s Re s e a r c h & M o n i t o r i n g Re p a i r s & M a i n t e n a n c e Ut i l i t i e s Ot h e r M a t e r i a l s , S u p p l i e s , & S v c s Collection, Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) September 30, 2025 Budget Actual Section 2 - Page 1 ,, --- -., -- - --.......-.:::;a -,, -------,, E - >----~ ~ I I LJ----... ...---,, D D ~ ~ ~ ~ .. --.. ,---,--ru ~ ,--rrl ~ --it I -- D D Divisional Contributions to Cost Per Million Gallons For the Three Months Ended September 30, 2025 2025-2 09/30/23 09/30/2 Annual 09/30/2 Actual Actual Budge Actual Flow in Million Gallons 17,078.51 17,363.47 67,525.00 17,136.54 Flow in Million Gallons per Da 185.64 188.73 185.00 186.27 General Manager's Department General Management Administratio 43.06$ 41.09$ 39.83$ 47.94$ Subtotal 43.06 41.09 39.83 47.94 Administrative Services Department Administrative Services 6.80 4.89 18.88 7.99 Consolidated Services 129.11 167.49 209.49 168.02 Financial Managemen 66.94 77.81 71.53 72.27 Contracts, Purchasing, & Materials Mgmt. 66.09 73.43 83.16 84.90 Information Technolog 297.67 324.86 265.45 357.39 Civil Facilities Maintenance - 0.13 124.86 144.84 Fleet Services 33.78 31.44 39.97 32.09 Subtotal 600.39 680.05 813.34 867.50 Communications Departmen Communications Administration - 4.81 5.74 6.42 Board Services 14.82 16.52 20.43 17.09 Public Affairs 19.25 21.99 33.18 26.43 Subtotal 34.07 43.32 59.35 49.94 Human Resources Department Human Resources Administration - 5.36 19.01 6.28 Human Resources 50.30 44.82 54.94 66.01 Risk Managemen 54.65 44.16 54.67 49.23 Subtotal 104.95 94.34 128.62 121.52 Environmental Services Department Environmental Services Administration 83.72 51.43 26.58 51.55 Resource Protection 90.15 94.36 113.65 96.02 Environmental Laboratory & Ocean Monitorin 134.20 152.44 181.97 167.73 Environmental Complianc - 41.09 71.88 48.93 Subtotal 308.07 339.32 394.08 364.23 Engineering Department Engineering Administration 9.85 8.51 10.10 9.51 Planning 51.42 59.93 76.30 65.38 Project Management Offic 63.47 66.03 73.87 71.87 Design 84.04 109.27 126.95 114.38 Construction Managemen 114.58 128.04 147.35 152.18 Subtotal 323.36 371.78 434.57 413.32 Operations & Maintenance Departmen Operations & Maintenance Administration 5.05 5.44 13.77 6.28 Collections Facilities O & M 248.27 211.72 292.15 244.87 Maintenance Support Service - - 109.64 104.90 Plant No. 1 Operations 583.77 560.77 658.62 640.01 Plant No. 2 Operations 290.19 353.05 351.75 321.79 Plant No. 1 Maintenanc 393.76 576.92 359.77 453.62 Plant No. 2 Maintenanc 378.54 258.39 324.08 342.50 Subtotal 1,899.58 1,966.29 2,109.78 2,113.97 Total Operating Expense 3,313.48 3,536.19 3,979.57 3,978.42 Cost Allocation (272.04) (341.50) (330.57) (379.52) Net Operating Requirement 3,041.44$ 3,194.69$ 3,649.00$ 3,598.90$ FY 2025-26 First Quarter Financial Report Section 2 - Page 2 Comparison of Expenses by Department For the Three Months Ended September 30, 2025 2025-2 09/30/23 09/30/2 ear to Date Budget Department and Division Actual Actual Budge 09/30/2 Realized General Manager's Departmen General Management Administration 735,343$ 713,520$ 2,689,236$ 821,538$ 30.55% Subtotal 735,343 713,520 2,689,236 821,538 30.55% Administrative Services Department Administrative Services 116,066 84,826 1,275,202 136,921 10.74% Consolidated Services 2,204,941 2,908,226 14,145,939 2,879,328 20.35% Financial Management 1,143,260 1,351,035 4,830,289 1,238,408 25.64% Contracts, Purchasing, & Materials Mgmt. 1,128,740 1,275,036 5,615,571 1,454,818 25.91% Information Technology 5,083,827 5,640,761 17,924,562 6,124,389 34.17% Civil Facilities Maintenance - 2,219 8,431,328 2,481,989 29.44% Fleet Services 576,991 545,849 2,699,104 549,985 20.38% Subtotal 10,253,825 11,807,952 54,921,995 14,865,838 27.07% Communications Departmen Communications Administration - 83,542 387,671 109,971 28.37% Board Services 253,135 286,761 1,379,231 292,902 21.24% Public Affairs 328,831 381,870 2,240,654 452,840 20.21% Subtotal 581,966 752,173 4,007,556 855,713 21.35% Human Resources Departmen Human Resources Administration - 92,994 1,283,536 107,698 8.39% Human Resources 859,089 778,285 3,710,053 1,131,234 30.49% Risk Management 933,408 766,799 3,691,274 843,664 22.86% Subtotal 1,792,497 1,638,078 8,684,863 2,082,596 23.98% Environmental Services Departmen Environmental Services Administration 1,429,823 892,932 1,794,897 883,433 49.22% Resource Protection 1,539,549 1,638,461 7,674,199 1,645,385 21.44% Environmental Laboratory & Ocean Monitoring 2,291,934 2,646,836 12,287,567 2,874,387 23.39% Environmental Compliance - 713,415 4,853,940 838,463 17.27% Subtotal 5,261,306 5,891,644 26,610,603 6,241,668 23.46% Engineering Department Engineering Administration 168,194 147,762 681,790 162,886 23.89% Planning 878,142 1,040,532 5,152,196 1,120,306 21.74% Project Management Office 1,083,931 1,146,559 4,988,108 1,231,652 24.69% Design 1,435,321 1,897,232 8,572,337 1,960,083 22.87% Construction Management 1,956,899 2,223,261 9,949,717 2,607,841 26.21% Subtotal 5,522,487 6,455,346 29,344,148 7,082,768 24.14% Operations & Maintenance Department Operations & Maintenance Administration 86,197 94,465 929,687 107,648 11.58% Collections Facilities O & M 4,240,162 3,676,276 19,727,503 4,196,244 21.27% Maintenance Support Services - - 7,403,500 1,797,664 24.28% Plant No. 1 Operations 9,969,923 9,736,981 44,473,199 10,967,483 24.66% Plant No. 2 Operations 4,955,982 6,130,252 23,752,048 5,514,362 23.22% Plant No. 1 Maintenance 6,724,916 10,017,358 24,293,470 7,773,512 32.00% Plant No. 2 Maintenance 6,464,889 4,486,590 21,883,593 5,869,184 26.82% Subtotal 32,442,069 34,141,922 142,463,000 36,226,097 25.43% Total Operating Expenses 56,589,493 61,400,635 268,721,401 68,176,218 25.37% Cost Allocation (4,646,267) (5,929,698) (22,355,980) (6,503,484) 29.09% Net Operating Requirements 51,943,226$ 55,470,937$ 246,365,421$ 61,672,734$ 25.03% Operating Budget Review Section 2 - Page 3 Summary of Collection, Treatment, & Disposal Expenses by Major Categor For the Three Months Ended September 30, 2025 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease)Budget Remaining 2025-26 09/30/2 09/30/2 $ % Realized Budget Salary & Wages 100,995,374$ 24,831,662 22,338,079 2,493,583$ 11.16% 24.59% 76,163,712$ Employee Benefits 29,903,247 7,249,601 6,577,115 672,486 10.22% 24.24% 22,653,646 Administrative Expenses 2,773,176 759,993 653,447 106,546 16.31% 27.41% 2,013,183 Printing & Publication 391,353 64,769 50,418 14,351 28.46% 16.55% 326,584 Training & Meetings 2,156,685 284,449 356,855 (72,406) -20.29% 13.19% 1,872,236 Operating Materials & Supplies 32,398,557 7,819,366 7,436,449 382,917 5.15% 24.13% 24,579,191 Contractual Services 23,848,656 5,447,978 5,353,625 94,353 1.76% 22.84% 18,400,678 Professional Services 11,302,938 1,903,143 1,557,603 345,540 22.18% 16.84% 9,399,795 Research & Monitoring 2,174,637 900,439 714,278 186,161 26.06% 41.41% 1,274,198 Repairs & Maintenance 37,649,113 13,290,686 11,236,485 2,054,201 18.28% 35.30% 24,358,427 Utilities 16,972,772 4,132,369 3,944,184 188,185 4.77% 24.35% 12,840,403 Other Materials, Supplies, and Services 8,154,893 1,491,763 1,182,097 309,666 26.20% 18.29% 6,663,130 Net Cost Allocation (22,355,980) (6,503,484) (5,929,698) (573,786) 9.68% 29.09% (15,852,496) Net Operating Requirements 246,365,421 61,672,734 55,470,937 6,201,797 11.18% 25.03% 184,692,687 Gallonage Flow (MG 67,525.00 17,136.54 17,363.47 (226.93) -1.31% Gallonage Flow (MGD 185.00 186.27 188.73 (2.46) -1.30% Gallonage Flow ($'s /MG $3,649.00 $3,598.90 $3,194.69 $404.21 12.65% Description FY 2025-26 First Quarter Financial Report Section 2 - Page 4 Revenue Percent Revenue Increase Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 2025-26 09/30/25 Realized Budget 09/30/24 $ % Service Fees 360,777,442$ 63,902$ 0.02% 360,713,540$ 24,802$ 39,100$ 157.65% Permit Fees 16,593,000 6,154,466 37.09% 10,438,534 4,051,625 2,102,841 51.90% Inter District Sewer Use-SAWPA & SBSD 93,250 848,907 910.36% (755,657) 849,558 (651) -0.08% Intra District Sewer Use-IRWD 11,185,390 1,161,407 10.38% 10,023,983 982,433 178,974 18.22% Capital Assessments-IRWD 9,514,000 1,570,355 16.51% 7,943,645 822,056 748,299 91.03% Capital Facilities Capacity Charges 21,671,000 3,886,633 17.93% 17,784,367 1,646,118 2,240,515 136.11% Property Taxes 123,698,000 1,995,511 1.61% 121,702,489 1,943,297 52,214 2.69% Interest Earnings 26,474,000 11,121,854 42.01% 15,352,146 25,072,596 (13,950,742) -55.64% CIP Reimbursements - 2,593,058 N/A (2,593,058) - 2,593,058 100.00% Wastehauler - 161,560 N/A (161,560) 157,517 4,043 2.57% CNG Sales - 34,601 N/A (34,601) 44,335 (9,734) -21.96% Rents & Leases - 112,214 N/A (112,214) 99,095 13,119 13.24% Other Revenues 8,624,500 194,695 2.26% 8,429,805 79,221 115,474 145.76% Power Sales - 12,213 N/A (12,213) 21,343 (9,130) -42.78% Other Sales - 59,354 N/A (59,354) 12,573 46,781 372.08% Total Revenues 578,630,582$ 29,970,730$ 5.18% 548,659,852$ 35,806,569$ (5,835,839)$ -16.30% Summary of Revenues For the Three Months Ended September 30, 2025 Operating Budget Review Section 2 - Page 5 FY 2025-26 First Quarter Financial Report Summary of Collection, Treatment, & Disposal Expenses by Line Ite For the Three Months Ended September 30, 202 Expense Percent Expense Increase Budget Through Budget Remaining Through (Decrease) Description 2025-26 09/30/25 Expensed Budget 09/30/24 $ Salaries, Wages & Benefits Salaries & Wages 100,995,374$ 24,831,662$ 24.59% 76,163,712$ 22,338,079$ 2,493,583$ 11.16% Employee Benefits Retirement 13,562,118 3,113,853 22.96% 10,448,265 2,833,746 280,107 9.88% Group Insurances 13,127,996 3,208,250 24.44% 9,919,746 3,023,160 185,090 6.12% Tuition & Certification Reimb 86,076 30,853 35.84% 55,223 19,589 11,264 57.50% Edu. degrees, Cert. & Lic. 654,927 164,268 25.08% 490,659 155,774 8,494 5.45% Uniform Rental 455,365 53,536 11.76% 401,829 112,497 (58,961) -52.41% Workers' Compensation 955,263 197,865 20.71% 757,398 164,889 32,976 20.00% Unemployment Insurance 14,320 3,139 21.92% 11,181 390 2,749 704.87% Employee Supplemental Benefits 1,047,182 477,837 45.63% 569,345 267,070 210,767 78.92% Total Benefits 29,903,247 7,249,601 24.24% 22,653,646 6,577,115 672,486 10.22% Salaries, Wages & Benefits 130,898,621 32,081,263 24.51% 98,817,358 28,915,194 3,166,069 10.95% Matl, Supplies, & Services Administrative Expense Memberships 746,825 437,914 58.64% 308,911 332,238 105,676 31.81% Office Exp - Supplies 73,688 10,064 13.66% 63,624 11,252 (1,188) -10.56% Postage 63,750 11,590 18.18% 52,160 13,228 (1,638) -12.38% Books & Publications 33,471 9,838 29.39% 23,633 6,268 3,570 56.96% Forms 1,000 - 0.00% 1,000 102 (102) -100.00% Small Computer Items 1,336,891 266,680 19.95% 1,070,211 236,898 29,782 12.57% Minor Furniture & Fixtures 517,551 23,907 4.62% 493,644 53,461 (29,554) -55.28% Subtotal 2,773,176 759,993 27.41% 2,013,183 653,447 106,546 16.31% Printing & Publication Repro-In-House 205,191 43,112 21.01% 162,079 38,218 4,894 12.81% Printing-Outside 40,562 4,611 11.37% 35,951 1,928 2,683 139.16% Notices & Ads 145,600 17,046 11.71% 128,554 10,272 6,774 65.95% Subtotal 391,353 64,769 16.55% 326,584 50,418 14,351 28.46% Training & Meetings Meetings 175,760 10,637 6.05% 165,123 19,394 (8,757) -45.15% Training 1,980,925 273,812 13.82% 1,707,113 337,461 (63,649) -18.86% Subtotal 2,156,685 284,449 13.19% 1,872,236 356,855 (72,406) -20.29% Operating Mat'ls & Supplies Chemical Coagulants 16,458,365 4,018,735 24.42% 12,439,630 4,150,308 (131,573) -3.17% Odor & Corrosion Control 10,538,161 2,652,061 25.17% 7,886,100 2,190,361 461,700 21.08% Disinfection 641,000 134,801 21.03% 506,199 138,141 (3,340) -2.42% Chemicals - Misc & Cogen 506,000 87,802 17.35% 418,198 102,027 (14,225) -13.94% Gasoline, Diesel & Oil 909,395 211,312 23.24% 698,083 189,426 21,886 11.55% Tools 767,750 180,291 23.48% 587,459 164,492 15,799 9.60% Safety equipment/tools 1,030,432 238,765 23.17% 791,667 178,652 60,113 33.65% Solv, Paints & Jan. Supplies 136,768 39,062 28.56% 97,706 34,164 4,898 14.34% Lab Chemicals & Supplies 928,435 205,143 22.10% 723,292 239,287 (34,144) -14.27% Misc. Operating Supplies 465,151 50,797 10.92% 414,354 49,591 1,206 2.43% Property Tax Fees 17,100 597 3.49% 16,503 - 597 N/A Subtotal 32,398,557 7,819,366 24.13% 24,579,191 7,436,449 382,917 5.15% Contractual Services Solids Removal 14,240,000 3,441,996 24.17% 10,798,004 3,382,614 59,382 1.76% Other Waste Disposal 1,405,989 330,100 23.48% 1,075,889 299,490 30,610 10.22% Groundskeeping 239,589 63,840 26.65% 175,749 39,185 24,655 62.92% Janitorial 1,401,623 362,805 25.88% 1,038,818 439,656 (76,851) -17.48% Outside Lab Services 534,000 65,406 12.25% 468,594 105,594 (40,188) -38.06% Oxygen 1,370,000 451,901 32.99% 918,099 195,614 256,287 131.02% County Service Fee 618,500 2,295 0.37% 616,205 8,462 (6,167) -72.88% Temporary Services 505,000 40,938 8.11% 464,062 50,320 (9,382) -18.64% Security Services 2,611,455 578,208 22.14% 2,033,247 572,056 6,152 1.08% Othe 922,500 110,489 11.98% 812,011 260,634 (150,145) -57.61% Subtotal 23,848,656 5,447,978 22.84% 18,400,678 5,353,625 94,353 1.76% Increase (Decrease) % Section 2 - Page 6 (Continued) Operating Budget Review Summary of Collection, Treatment, & Disposal Expenses by Line Item For the Three Months Ended September 30, 2025 Expense Expense Increase Increase Budget Through Remaining Through (Decrease)(Decrease) Description 2025-26 09/30/25 Expensed Budget 09/30/24 $ % Continued: Professional Services Legal 2,532,500 417,452 16.48% 2,115,048 506,291 (88,839) -17.55% Audit & Accounting 232,000 72,380 31.20% 159,620 101,000 (28,620) -28.34% Engineering 1,968,838 527,251 26.78% 1,441,587 395,059 132,192 33.46% Enviro Scientific Consulting 1,035,000 29,521 2.85% 1,005,479 70,844 (41,323) -58.33% Software Prgm Consulting 1,057,700 384,274 36.33% 673,426 261,463 122,811 46.97% Energy Consulting 22,000 5,250 23.86% 16,750 3,500 1,750 50.00% Advocacy Efforts 345,600 56,500 16.35% 289,100 53,500 3,000 5.61% Industrial Hygiene Services 100,000 19,198 19.20% 80,802 4,391 14,807 337.21% Labor Negotiation Services 40,000 26,043 65.11% 13,957 - 26,043 N/A Other 3,969,300 365,274 9.20% 3,604,026 161,555 203,719 126.10% Subtotal 11,302,938 1,903,143 16.84% 9,399,795 1,557,603 345,540 22.18% Research & Monitoring Environmental Monitoring 1,270,000 59,799 4.71% 1,210,201 104,826 (45,027) -42.95% Air Quality Monitoring 300,000 261,003 87.00% 38,997 46,698 214,305 458.92% Research 604,637 579,637 95.87% 25,000 562,754 16,883 3.00% Subtotal 2,174,637 900,439 41.41% 1,274,198 714,278 186,161 26.06% Repairs & Maintenance Materials & Services 26,687,410 9,226,593 34.57% 17,460,817 7,633,545 1,593,048 20.87% Svc. Mtc. Agreements 10,961,703 4,064,093 37.08% 6,897,610 3,602,940 461,153 12.80% Subtotal 37,649,113 13,290,686 35.30% 24,358,427 11,236,485 2,054,201 18.28% Utilities Telephone 531,400 141,967 26.72% 389,433 122,091 19,876 16.28% Diesel For Generators 65,000 11,134 17.13% 53,866 4,191 6,943 165.66% Natural Gas 3,267,000 823,448 25.21% 2,443,552 758,314 65,134 8.59% Power 11,822,446 2,778,209 23.50% 9,044,237 2,699,085 79,124 2.93% Water 1,286,926 377,611 29.34% 909,315 360,503 17,108 4.75% Subtotal 16,972,772 4,132,369 24.35% 12,840,403 3,944,184 188,185 4.77% Other Operating Supplies Outside Equip Rental 95,000 16,984 17.88% 78,016 14,734 2,250 15.27% Insurance Premiums 53,000 54,010 101.91% (1,010) 51,415 2,595 5.05% Prop & Gen Liab Insurance 3,924,030 1,162,467 29.62% 2,761,563 730,323 432,144 59.17% Freight 214,200 45,409 21.20% 168,791 44,040 1,369 3.11% Misc. Operating Expense 494,787 108,475 21.92% 386,312 100,263 8,212 8.19% Regulatory Operating Fees 1,926,373 78,482 4.07% 1,847,891 212,117 (133,635) -63.00% Subtotal 6,707,390 1,465,827 21.85% 5,241,563 1,152,892 312,935 27.14% General Mgr Contingency & Reappropriations 1,309,753 - 0.00% 1,309,753 - - N/A Other Non-Oper Expense 137,750 25,936 18.83% 111,814 29,205 (3,269) -11.19% Total Materials, Supplies & Services 137,822,780 36,094,955 26.19% 101,727,825 32,485,441 3,609,514 11.11% Total Expenditures 268,721,401 68,176,218 25.37% 200,545,183 61,400,635 6,775,583 11.04% Cost Allocation (22,355,980) (6,503,484) 29.09% (15,852,496) (5,929,698) (573,786) 9.68% Net Operating Requirements 246,365,421$ 61,672,734$ 25.03% 184,692,687$ 55,470,937$ 6,201,797$ 11.18% Percent Budget Section 2 - Page 7 FY 2025-26 First Quarter Financial Report Summary of Collection, Treatment, & Disposal Expenses by Process For the Three Months Ended September 30, 2025 Increase Increase Actual Actual (Decrease) (Decrease) 09/30/25 09/30/24 $ % Process: Preliminary Treatment 3,994,629$ 3,645,104$ 349,525$ 9.59% Primary Treatment 7,004,855 6,952,202 52,653 0.76% Secondary Treatment 3,762,238 3,406,001 356,237 10.46% Oxygen Generation Facility (Plant 2)870,908 393,371 477,537 121.40% Effluent Disposal 340,155 276,030 64,125 23.23% Solids Handling 17,719,958 16,747,983 971,975 5.80% Cogeneration 7,900,569 7,193,190 707,379 9.83% Utilities 1,591,915 1,248,742 343,173 27.48% Electrical Distribution 1,246,665 682,348 564,317 82.70% Miscellaneous Buildings 4,488,783 3,389,669 1,099,114 32.43% External Location 19,845 3,962 15,883 400.88% Nerissa Vessel 93,660 87,236 6,424 7.36% Laboratory 4,749,468 4,305,114 444,354 10.32% Collections 7,889,086 7,139,985 749,101 10.49% Net Operating Requirements 61,672,734$ 55,470,937$ 6,201,797$ 11.18% Section 2 - Page 8 Staffing Trends Full Time Equivalents (FTE) September 30, 2025 At September 30, 2025, the total head count was 657 employees, or a full time equivalency of 636. Operating Budget Review 450 500 550 600 650 700 750 6/30/22 6/30/23 6/30/24 6/30/25 9/30/25 595 583 623 634 636 44 64 32 30 28 Actual Vacant BudgetedFTE 639 647 655 664 664 Section 2 - Page 9 □ □ FY 2025-26 First Quarter Financial Report This Page Intentionally Left Blank Section 2 - Page 10 Capital Improvement Program By Process Area and Project Drive For the Three Months Ended September 30, 2025 Capital Improvement Program Budget Review Total Capital Improvement Outlays by Project Driver - $52,347,088 Rehabilitation and Replacement: 81.7% Strategic Initiatives: 8.0% Additional Capacity: 8.0% Regulatory: 2.3% Total Capital Improvement Outlays by Process Area - $52,347,088 Collections Facilities: 37.5% Liquid Treatment: 29.6% Solids Handling & Digestion: 13.9% Utility Systems: 2.6% Support Facilities: 8.9% Other: 7.5% Section 3 - Page 1 □ □ □ □ □ □ □ □ □ □ FY 2025-26 First Quarter Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Three Months Ended September 30, 2025 2025-26 2025-26 2025-26 Cashflow Actual at Projected Budget 9/30/2025 Outlay Collection System Improvement Projects Collections Facilities Santa Ana Trunk Sewer Rehabilitation 4,555,304$ 125,694$ 4,277,600$ Greenville-Sullivan Trunk Improvements 58 - - Taft Branch Capacity Improvements 7,584,218 2,757,132 11,633,300 Yorba Linda Dosing Station Installation 219,002 42,419 107,600 Knott - Miller Holder - Artesia Branch Rehabilitation 406,090 36,993 707,000 Rehabilitation of Western Regional Sewers 5,750,397 864,846 8,219,000 Interstate 405 Widening Project Impacts on OC San Sewers 59,313 - 9,000 Seal Beach Pump Station Replacement 17,302,710 5,430,514 21,903,200 Bay Bridge Pump Station Replacement 6,574,488 2,925,393 11,580,200 Newport Beach Pump Station Pressurization Improvements 262,957 11,191 353,000 East Coast Highway Sewer Rehabilitation 445,720 - - Fairview Trunk Sewer Rehabilitation 661,935 169,699 551,300 MacArthur Pump Station Rehabilitation 147,342 43,589 168,900 Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 16,115,339 6,698,412 16,328,300 MacArthur Force Main Improvement 533,299 34,148 446,200 North Trunk Improvements 347,079 31,080 144,400 Edinger Pumping Station Replacement 1,261,043 (71,628) 1,086,200 Small Construction Projects Program - Collections 4,214,513 104,929 2,617,400 Planning Studies Program - Collections 58,256 - 155,200 Additional Charges to CIP Closed at 6/30/25 - 331,588 331,600 Subtotal - Collections Facilities 66,499,063 19,535,999 80,619,400 Revenue Area 14 Bay Bridge Pumping Station Rehabilitation (3.62%) 246,936 109,877 435,000 Newport Beach Pump Station Pressurization Improve (0.27%) 712 30 1,000 Subtotal - Revenue Area 14 247,648 109,907 436,000 Total Collection System Improvement Projects 66,746,711 19,645,906 81,055,400 Section 3 - Page 2 (Continued) Summary of Capital Improvement Construction Requirements - Current Year For the Three Months Ended September 30, 2025 2025-26 2025-26 2025-26 Cashflow Actual a Projected Budget 9/30/2025 Outla Treatment & Disposal Projects Headworks Headworks Rehabilitation at Plant 1 24,184,260 5,851,212 24,020,100 Subtotal - Headworks 24,184,260 5,851,212 24,020,100 Primary Treatment Primary Sedimentation Basins 3-5 Replacement at Plant 1 4,199,476 913,527 4,281,000 Primary Sedimentation Basins 6-31 Reliability Improv at P1 356,049 (62,922) 339,300 Primary Treatment Rehabilitation at Plant 2 22,604,521 6,627,841 21,773,600 Subtotal - Primary Treatment 27,160,046 7,478,446 26,393,900 Secondary Treatment Activated Sludge-1 Aeration Basin & Blower Rehab at P1 5,580,737 579,804 3,688,300 Trickling Filter Rehab at P1 2,506,135 76,106 1,492,400 Activated Sludge Aeration Basin Rehabilitation at Plant 2 2,097,276 102,020 2,483,600 Subtotal - Secondary Treatment 10,184,148 757,930 7,664,300 Solids Handling & Digestion Deep Wll Biosolids Management Facility 310,315 - 427,800 Interim Food Waste Receiving Facility 129,531 70 171,300 TPAD Digester Facility at Plant 2 14,094,930 6,552,188 17,433,400 Digesters Rehabilitation at Plant No. 2 2,739,421 681,242 2,084,100 Truck Loading Bay Odor Control Improvements at Plant 2 616,144 17,483 584,100 Subtotal - Solids Handling & Digestion 17,890,341 7,250,983 20,700,700 Ocean Outfall Systems Ocean Outfall System Rehabilitation 6,751,099 1,176,303 7,009,900 120-inch Ocean Outfall Rehabilitation 1,474,008 157,673 2,322,900 Sodium Bisulfite Station Rehabilitation at Plant 2 966,681 43,423 983,200 Emergency Overflow Pipes & Windwall Rehabilitation at P2 74,570 4,093 81,500 Subtotal - Ocean Outfall Systems 9,266,358 1,381,492 10,397,500 Capital Improvement Program Budget Review Section 3 - Page 3 (Continued) FY 2025-26 First Quarter Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Three Months Ended September 30, 2025 2025-26 2025-26 2025-26 Cashflow Actual at Projected Budget 9/30/2025 Outlay Treatment & Disposal Projects (Continued) Utility Systems Electrical Power Distribution System Improvements 3,515,299 79,677 3,915,300 Digester Gas Facilities Rehabilitation 5,683,443 767,656 6,071,800 Central Generation Engine Overhauls at Plants 1 and 2 10,065,452 73,998 7,429,500 Central Generation Facilities & OOBS Seismic Upgrades 86,185 12,641 12,700 Public Address System Replacement 175,010 - 149,900 Power Dist. Sys. & Bldg C Repl. At Plants 1 and 2 793,770 - 362,300 Uninterruptable Power Supply Improvements at Plant 1 1,578,239 386,408 1,482,900 Industrial Control System & IT Data Center Relocation at P1 795,665 13,376 1,305,400 Headworks Electrical Distribution Improvements at P2 575,150 37,422 870,200 Subtotal - Utility Systems 23,268,213 1,371,178 21,600,000 Information Management Systems Process Control Systems Upgrades 5,832,634 484,307 5,244,400 Project Management Information System 50,729 35,050 60,800 Process Control System Alarm Optimization 354,537 4,123 159,100 Information Technology Capital Program 1,491,743 176,214 1,009,600 Subtotal - Information Management Systems 7,729,643 699,694 6,473,900 Strategic & Master Planning Planning Studies Program 4,379,568 339,527 5,887,400 Subtotal - Strategic & Master Planning 4,379,568 339,527 5,887,400 Water Management Projects GWRS Final Expansion Coordination - - 600 Subtotal - Water Management Projects - - 600 Research Research Program 2,108,754 53,057 3,566,700 Subtotal - Research 2,108,754 53,057 3,566,700 Section 3 - Page 4 (Continued) Summary of Capital Improvement Construction Requirements - Current Year For the Three Months Ended September 30, 2025 2025-26 2025-26 2025-26 Cashflow Actual at Projected Budget 9/30/2025 Outla Treatment & Disposal Projects (Continued) Support Facilities Small Construction Projects Program 30,821,031 3,647,222 25,879,600 Operations & Maintenance Capital Program - 756,547 4,844,400 Laboratory Rehabilitation at Plant 1 1,325,327 142,746 769,400 CenGen Monitoring Sys. Improvements at Plants 1 & 2 186,276 - 122,000 Headquarters Complex 179,707 30,041 695,700 Support Buildings Seismic Improvements at Plant 1 1,187,363 22,080 722,000 Administrative Facilities & Power Building 3A Demolition 415,812 164,649 384,300 Collections Yard Relocation 794,279 15,607 467,600 Operations and Maintenance Complex at Plant 2 1,246,216 (111,552) 6,639,800 Oxygen Gas Generation Facility at Plant No. 2 44,970 - 45,000 Waste Sidestream Pump Station A Improvements at Plant 2 261,611 - 261,700 Subtotal - Support Facilities 36,462,592 4,667,340 40,831,500 Others Capital Improvement Program Management Services 421,569 50,104 401,000 Subtotal - Others 421,569 50,104 401,000 Additional Charges to CIP Completed at 6/30/25 - 1,202 1,300 Total Treatment and Disposal Projects 163,055,492 29,902,165 167,938,900 Capital Equipment Purchases 59,148,516 2,799,017 59,148,600 Total Collection, Treatment and Disposal Projects and Capital Equipment Purchases 288,950,719 52,347,088 308,142,900 Less: Savings and Deferrals (34,674,086) - (36,977,148) Net Collection, Treatment and Disposal Projects and Capital Equipment Purchases 254,276,633$ 52,347,088$ 271,165,752$ Capital Improvement Program Budget Review Section 3 - Page 5 FY 2025-26 First Quarter Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Three Months Ended September 30, 2025 Current Total Approved June 30, 2025 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2026 Budget Collection System Improvement Projects Collections Facilities Santa Ana Trunk Sewer Rehabilitation 55,800,000$ 4,862,799$ 4,277,600$ 9,140,399$ 46,659,601$ Greenville-Sullivan Trunk Improvements 2,161,000 2,146,879 - 2,146,879 14,121 Taft Branch Capacity Improvements 30,200,000 7,643,574 11,633,300 19,276,874 10,923,126 Yorba Linda Dosing Station Installation 21,700,000 96,973 107,600 204,573 21,495,427 Santa Ana Canyon South River Trunk Rehabilitation 23,802,000 - - - 23,802,000 Knott - Miller Holder - Artesia Branch Rehabilitation 19,700,000 906,009 707,000 1,613,009 18,086,991 Westminster Blvd Force Main Replacement 43,900,000 43,495,590 - 43,495,590 404,410 Rehabilitation of Western Regional Sewers 96,300,000 44,797,862 8,219,000 53,016,862 43,283,138 Interstate 405 Widening Project Impacts on OC San Sewers 500,000 301,861 9,000 310,861 189,139 Seal Beach Pump Station Replacement 132,500,000 27,794,006 21,903,200 49,697,206 82,802,794 Los Alamitos Sub-Trunk Extension 115,198,000 - - - 115,198,000 Crystal Cove Pump Station Rehabilitation 17,774,000 - - - 17,774,000 Bay Bridge Pump Station Replacement 165,773,600 40,795,030 11,580,200 52,375,230 113,398,370 Newport Beach Pump Station Pressurization Improvements 2,692,710 2,339,791 353,000 2,692,791 (81) East Coast Highway Sewer Rehabilitation 19,422,000 - - - 19,422,000 Fairview Trunk Sewer Rehabilitation 25,000,000 1,486,074 551,300 2,037,374 22,962,626 MacArthur Pump Station Rehabilitation 16,200,000 66,762 168,900 235,662 15,964,338 Main Street Pump Station Rehabilitation 45,234,000 - - - 45,234,000 Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 55,500,000 35,709,523 16,328,300 52,037,823 3,462,177 MacArthur Force Main Improvement 6,400,000 5,943,957 446,200 6,390,157 9,843 North Trunk Improvements 33,800,000 219,460 144,400 363,860 33,436,140 Edinger Pumping Station Replacement 36,500,000 3,211,805 1,086,200 4,298,005 32,201,995 Slater Pump Station Rehabilitation 45,600,000 16,480 - 16,480 45,583,520 Bolsa Chica/Edinger/Springdale Trunk Sewer Rehab 9,274,000 - - - 9,274,000 Small Construction Projects Program - Collections 7,454,706 6,072,877 2,617,400 8,690,277 (1,235,571) Planning Studies Program - Collections - - 155,200 155,200 (155,200) Additional Charges to CIP Closed at 6/30/25 - 4,830,564 331,600 5,162,164 (5,162,164) Subtotal - Collections Facilities 1,028,386,016 232,737,876 80,619,400 313,357,276 715,028,740 Revenue Area 14: Bay Bridge Pumping Station Rehabilitation (3.62%) 6,226,400 1,532,247 435,000 1,967,247 4,259,153 Newport Beach Pump Station Pressurization Improve (0.27%) 7,290 6,335 1,000 7,335 (45) Subtotal - Revenue Area 14 6,233,690 1,538,582 436,000 1,974,582 4,259,108 Total Collection System Improvement Projects 1,034,619,706 234,276,458 81,055,400 315,331,858 719,287,848 Section 3 - Page 6 (Continued) Summary of Capital Improvement Construction Requirements - Project Life For the Three Months Ended September 30, 2025 Current Total Approved June 30, 2025 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2026 Budget Treatment & Disposal Projects Headworks Headworks Rehabilitation at Plant 1 340,000,000 214,467,909 24,020,100 238,488,009 101,511,991 Headworks Modifications at P2 for GWRS Final Expansion - - - - - Subtotal - Headworks 340,000,000 214,467,909 24,020,100 238,488,009 101,511,991 Primary Treatment Primary Sedimentation Basins 3-5 Replacement at Plant 1 201,000,000 12,337,790 4,281,000 16,618,790 184,381,210 Primary Sedimentation Basins 6-31 Reliability Improv at P1 12,100,000 11,211,284 339,300 11,550,584 549,416 Primary Treatment Rehabilitation at Plant 2 188,000,000 123,522,561 21,773,600 145,296,161 42,703,839 B/C-Side Primary Clarifiers Rehabilitation at Plant 2 305,928,000 - - - 305,928,000 Subtotal - Primary Treatment 707,028,000 147,071,635 26,393,900 173,465,535 533,562,465 Secondary Treatment Activated Sludge-1 Aeration Basin & Blower Rehab at P1 470,000,000 13,447,067 3,688,300 17,135,367 452,864,633 Trickling Filter Rehab at P1 42,000,000 652,831 1,492,400 2,145,231 39,854,769 Return Activated Sludge Piping Replacement at Plant 2 - - - - - Activated Sludge Aeration Basin Rehabilitation at Plant 2 65,600,000 2,207,788 2,483,600 4,691,388 60,908,612 Subtotal - Secondary Treatment 577,600,000 16,307,686 7,664,300 23,971,986 553,628,014 Solids Handling & Digestion Deep Wll Biosolids Management Facility 78,563,000 - 427,800 427,800 78,135,200 Interim Food Waste Receiving Facility 10,000,000 1,360,468 171,300 1,531,768 8,468,232 TPAD Digester Facility at Plant 2 588,000,000 42,548,299 17,433,400 59,981,699 528,018,301 Digesters Rehabilitation at Plant No. 2 51,200,000 6,667,319 2,084,100 8,751,419 42,448,581 Truck Loading Bay Odor Control Improvements at Plant 2 9,700,000 200,369 584,100 784,469 8,915,531 Subtotal - Solids Handling & Digestion 737,463,000 50,776,455 20,700,700 71,477,155 665,985,845 Ocean Outfall Systems Ocean Outfall System Rehabilitation 176,600,000 140,385,940 7,009,900 147,395,840 29,204,160 120-inch Ocean Outfall Rehabilitation 100,000,000 1,072,036 2,322,900 3,394,936 96,605,064 Sodium Bisulfite Station Rehabilitation at Plant 2 9,860,000 1,869,324 983,200 2,852,524 7,007,476 Emergency Overflow Pipes & Windwall Rehabilitation at P2 7,500,000 116,246 81,500 197,746 7,302,254 Subtotal - Ocean Outfall Systems 293,960,000 143,443,546 10,397,500 153,841,046 140,118,954 Capital Improvement Program Budget Review Section 3 - Page 7 (Continued) FY 2025-26 First Quarter Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Three Months Ended September 30, 2025 Current Total Approved June 30, 2025 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2026 Budget Treatment & Disposal Projects (Continued) Utility Systems Electrical Power Distribution System Improvements 43,000,000 4,447,259 3,915,300 8,362,559 34,637,441 Digester Gas Facilities Rehabilitation 190,000,000 20,570,339 6,071,800 26,642,139 163,357,861 Central Generation Engine Overhauls at Plants 1 and 2 74,700,000 31,193,972 7,429,500 38,623,472 36,076,528 Central Generation Facilities & OOBS Seismic Upgrades 17,500,000 13,294 12,700 25,994 17,474,006 Public Address System Replacement 12,208,000 - 149,900 149,900 12,058,100 Power Dist. Sys. & Bldg C Repl. At Plants 1 and 2 54,934,000 - 362,300 362,300 54,571,700 Uninterruptable Power Supply Improvements at Plant 1 9,600,000 7,521,005 1,482,900 9,003,905 596,095 Industrial Control System & IT Data Center Relocation at P1 16,500,000 144,638 1,305,400 1,450,038 15,049,962 Headworks Electrical Distribution Improvements at P2 34,652,000 62,338 870,200 932,538 33,719,462 Subtotal - Utility Systems 453,094,000 63,952,845 21,600,000 85,552,845 367,541,155 Information Management Systems Process Control Systems Upgrades 32,500,000 15,293,826 5,244,400 20,538,226 11,961,774 Project Management Information System 2,280,000 1,750,149 60,800 1,810,949 469,051 Process Control System Alarm Optimization 6,439,000 14,741 159,100 173,841 6,265,159 Information Technology Capital Program 10,000,000 1,568,901 1,009,600 2,578,501 7,421,499 EAM Software and Process Implementation - - - - - Subtotal - Information Management Systems 51,219,000 18,627,617 6,473,900 25,101,517 26,117,483 Strategic & Master Planning Planning Studies Program 25,000,000 2,932,147 5,887,400 8,819,547 16,180,453 Subtotal - Strategic & Master Planning 25,000,000 2,932,147 5,887,400 8,819,547 16,180,453 Water Management Projects GWRS Final Expansion Coordination 1,400,000 1,399,403 600 1,400,003 (3) Subtotal - Water Management Projects 1,400,000 1,399,403 600 1,400,003 (3) Research Research Program 10,000,000 4,406,131 3,566,700 7,972,831 2,027,169 Subtotal - Research 10,000,000 4,406,131 3,566,700 7,972,831 2,027,169 Section 3 - Page 8 (Continued) Summary of Capital Improvement Construction Requirements - Project Life For the Three Months Ended September 30, 2025 Current Total Approved June 30, 2025 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2026 Budget Treatment & Disposal Projects (Continued) Support Facilities Small Construction Projects Program 117,545,294 32,399,337 25,879,600 58,278,937 59,266,357 Operations & Maintenance Capital Program - 1,848,876 4,844,400 6,693,276 (6,693,276) Laboratory Rehabilitation at Plant 1 129,300,000 128,038 769,400 897,438 128,402,562 CenGen Monitoring Sys. Improvements at Plants 1 & 2 17,121,000 - 122,000 122,000 16,999,000 Headquarters Complex 171,000,000 169,559,456 695,700 170,255,156 744,844 South Perimeter Security & Utility Improvements at Plant 1 8,150,000 7,926,328 - 7,926,328 223,672 Support Buildings Seismic Improvements at Plant 1 30,500,000 2,478,436 722,000 3,200,436 27,299,564 Administrative Facilities & Power Building 3A Demolition 4,286,000 256,316 384,300 640,616 3,645,384 Collections Yard Relocation 9,400,000 8,214,743 467,600 8,682,343 717,657 Operations and Maintenance Complex at Plant 2 178,000,000 5,918,104 6,639,800 12,557,904 165,442,096 Oxygen Gas Generation Facility at Plant No. 2 20,319,000 - 45,000 45,000 20,274,000 Waste Sidestream Pump Station A Improvements at Plant 2 12,352,000 - 261,700 261,700 12,090,300 Subtotal - Support Facilities 697,973,294 228,729,634 40,831,500 269,561,134 428,412,160 Others Capital Improvement Program Management Services 2,000,000 1,198,915 401,000 1,599,915 400,085 Subtotal - Others 2,000,000 1,198,915 401,000 1,599,915 400,085 Total Treatment and Disposal Projects 3,896,737,294 893,313,923 167,938,900 1,061,252,823 2,835,484,471 Capital Equipment Purchases 59,148,516 - 59,148,600 59,148,600 (84) Less: Savings and Deferrals (34,674,086) - (36,977,148) (36,977,148) 2,303,062 Total Collection, Treatment and Disposal Projects and Capital Equipment Purchases 4,955,831,430$ 1,127,590,381$ 271,165,752$ 1,398,756,133$ 3,557,075,297$ Capital Improvement Program Budget Review Section 3 - Page 9 FY 2025-26 First Quarter Financial Report This Page Intentionally Left Blank Section 3 - Page 10 Capital Assets Schedule & Debt Service Budget Review For the Three Months Ended September 30, 2025 Balance Year-to-Date Balance 07/01/25 Activit 09/30/25 CONSTRUCTION IN PROGRESS (CIP): Collection System 138,387,585$ 19,645,906$ 158,033,491$ Treatment Plant 691,274,999 - 691,274,999 Subtotal 829,662,584 19,645,906 849,308,490 PROPERTY, PLANT & EQUIPMENT (at cost): Land and Property Rights 85,653,170 - 85,653,170 Collection Lines and Pump Stations 1,044,394,341 - 1,044,394,341 Treatment Facilities 2,870,522,393 - 2,870,522,393 Effluent disposal facilities 96,161,634 - 96,161,634 Solids disposal facilities 3,329,893 - 3,329,893 General and administrative facilities 406,519,911 - 406,519,911 Lease right-to-use asset 109,897 - 109,897 Subscription right-to-use assets 4,589,111 - 4,589,111 Excess purchase price over book value on acquired assets 19,979,000 - 19,979,000 Subtotal 4,531,259,350 - 4,531,259,350 Total Property, Plant & Equipment & CIP 5,360,921,934$ 19,645,906$ 5,380,567,840$ 2025-26 Year-to-Date Remaining Budget Payments % of Budget Budget Principal Payments by Debt Issue: 2010A BABs -$ -$ - -$ 2010C BABs - - - - 2016A COP 5,915,000 - 0.00% 5,915,000 2017A COP - - - - 2021A COP 18,890,000 - 0.00% 18,890,000 2022A COP - - - - 2024A COP 8,525,000 - 0.00% 8,525,000 Subtotal Principal Payments 33,330,000 - 0.00% 24,805,000 Interest Expense by Debt Issue: 2010A BABs 2,986,574 991,837 33.21% 1,994,737 2010C BABs 971,230 322,565 33.21% 648,665 2016A COP 5,475,800 1,368,900 25.00% 4,106,900 2017A COP 3,290,750 822,775 25.00% 2,467,975 2021A COP 3,835,250 958,825 25.00% 2,876,425 2022A COP 4,081,000 1,020,300 25.00% 3,060,700 2024A COP 6,460,500 1,615,150 25.00% 4,845,350 Subtotal Interest Expense 27,101,104 7,100,352 26.20% 20,000,752 Total Debt Service 60,431,104$ 7,100,352$ 11.75% 44,805,752$ Capital Assets Schedule & Debt Service Budget Review Capital Assets Schedule Debt Service Budget Review Section 4 - Page 1 FY 2025-26 First Quarter Financial Report This Page Intentionally Left Blank Section 4 - Page 2 General Liabilit and Propert Fund Bud et Review For the Three Months Ended September 30, 2025 Actual Actual 2025-26 Through Through Budget 09/30/25 09/30/24 Revenues: In-Lieu Premiums 4,649,886$ 1,162,467$ 25.00% 3,487,419$ 730,323$ 432,144$ Service Department Allocations 25,000 (54,966) -219.86% 79,966 810 55,776 Total Revenues 4,674,886 1,107,501 23.69%3,567,385 731,133 376,368 Expenses: Benefits/Claims 400,000 - 0.00% 400,000 1,116 1,116 Professional Services 20,000 2,700 13.50% 17,300 - 2,700 Subtotal 420,000 2,700 0.64%417,300 1,116 1,584 Policy Premium Expense 4,899,565 1,135,812 23.18% 3,763,753 1,159,329 23,517 Total Ex enses 5,319,565 1,138,512 21.40%4,181,053 1,160,445 21,933 Excess Revenue (Expense)(644,679) (31,011) (613,668)$ (429,312) 398,301 Beginning Reserves 98,644,679 98,644,679 97,635,517 1,009,162 Ending Reserves 98,000,000$ 98,613,668$ 97,206,205$ 1,407,463$ 09/30/25 Budget (Decrease) Self Insurance Budget Review Percent of Budget Remaining Through 2025-26 Increase Section 5 - Page 1 FY 2025-26 First Quarter Financial Report Workers' Compensation Fund Bud et Review For the Three Months Ended September 30, 2025 Actual Actual 2025-26 Through Through Budget 09/30/25 09/30/25 09/30/24 Revenues: In-Lieu Premiums 791,455$ 197,864$ 25.00% 593,591$ 164,886$ 32,978$ Service Department Allocations 100,000 13,425 13.43% 86,575 15,876 (2,451) Total Revenues 891,455 211,289 23.70%680,166 180,762 30,527 Expenses: Benefits/Claims 600,000 56,441 9.41% 543,559 218,180 (161,739) Legal Services 250,000 123,005 49.20% 126,995 153,058 (30,053) Professional Services 100,000 19,854 19.85% 80,146 14,457 5,397 Subtotal 950,000 199,300 20.98%750,700 385,695 186,395 Policy Premium Expense 476,000 102,776 21.59% 373,224 91,995 10,781 Total Ex enses 1,426,000 302,076 21.18%1,123,924 477,690 175,614 Excess Revenue (Expense)(534,545) (90,787) (443,758)$ (296,928) 206,141 Beginning Reserves 2,534,545 2,534,545 2,364,483 170,062 Ending Reserves 2,000,000$ 2,443,758$ 2,067,555$ 376,203$ Budget (Decrease) Percent of Budget Remaining Through 2025-26 Increase Section 5 - Page 2 October 31, 2025 STAFF REPORT Certificates of Participation (COP) Report For the Period Ended September 30, 2025 Summary The Orange County Sanitation District (OC San) began issuing Certificates of Participation (COPs) in 1990. These COPs were a part of our long-term financing plan that included both variable interest rate and traditional fixed rate borrowing. There remains no variable interest rate COPs at OC San. Following are the current outstanding debt issues of OC San: In May 2010, OC San issued $80 million of fixed rate Build America Bonds (BABs), Series 2010A at a true interest cost of 3.68 percent for the issue. In December 2010, OC San issued $157 million of fixed rate BABs, Series 2010C at a true interest cost of 4.11 percent for the issue. In March 2016, OC San issued $145.88 million of fixed rate COPs, Series 2016A, refunding $162.78 million of the Series 2009A fixed rate debt. The true interest cost for the issue is 3.02 percent. In November 2025, OC San will issue $95.07 million of fixed rate COPs, Series 2025A, refunding $109.935 million of the Series 2016A fixed rate debt. The true interest cost for the issue is 2.66 percent. In February 2017, OC San issued $66.37 million of fixed rate COPs, Series 2017A, refunding $91.885 million of the Series 2007A debt. The true interest cost for the issue is 2.55 percent. In July 2021, OC San issued $133.51 million of fixed rate COPs, Series 2021A, refunding $61.575 million of the Series 2011A fixed rate debt and $102.2 million of the Series 2018A fixed rate debt. The true interest cost for the issue is 1.06 percent. In February 2022, OC San issued $81.62 million of fixed rate COPs, Series 2022A, refunding $100.645 million of the Series 2012A fixed rate debt and $6.67 million of the Series 2012B fixed rate debt. The true interest cost for the issue is 1.59 percent. In May 2024, OC San issued $139.72 million of fixed rate COPs, Series 2024A, refunding $30.095 million of the Series 2014A fixed rate debt and $127.51 million of the Series 2015A fixed rate debt. The true interest cost for the issue is 2.72 percent. COP Report For the Period Ended September 30, 2025 Page 2 of 2 Issue Description Outstanding COP Balance Annual Interest Rate Approx Annual Interest Original Principal Issue Date Final Maturity 2010A Fixed 80,000,000.00 3.68% 2,944,000.00 80,000,000.00 5/18/2010 2/1/2040 2010C Fixed 22,830,000.00 4.11% 938,313.00 157,000,000.00 12/8/2010 2/1/2032 2016A Fixed 115,850,000.00 3.02% 3,498,670.00 145,880,000.00 3/30/2016 2/1/2039 2017A Fixed 65,815,000.00 2.55% 1,678,282.50 66,370,000.00 2/1/2017 2/1/2030 2021A Fixed 76,705,000.00 1.06% 813,073.00 133,510,000.00 7/29/2021 2/1/2036 2022A Fixed 81,620,000.00 1.59% 1,297,758.00 81,620,000.00 2/1/2022 2/1/2033 2024A Fixed 129,210,000.00 2.72% 3,514,512.00 139,720,000.00 5/7/2024 2/1/2037 572,030,000.00 14,684,608.50 804,100,000.00 Weighted Avg Cost of Funds 2.57% Orange County Sanitation District FINANCIAL MANAGEMENT DIVISION 18480 Bandilier CircleFountain Valley, California 92708-7018714.962.2411 | www.ocsan.gov 09/30/25 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4444 Agenda Date:11/12/2025 Agenda Item No:5. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: TREASURER’S REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District First Quarter Treasurer’s Report for the period ended September 30, 2025. BACKGROUND The First Quarter Treasurer’s Report contains financial portfolio performance with respect to the Orange County Sanitation District’s (OC San) funds. The report alsocontains information onthe U.S. and global economic outlook from OC San’s investment manager, Insight Investment and Section 115 Trust performance indicators. The Section 115 trust is administered by Public Agency Retirement Services, managed by PFM Asset Management and was established to prefund pension obligations. RELEVANT STANDARDS ·Quarterly financial reporting ADDITIONAL INFORMATION The First Quarter Treasurer’s Report is being submitted in accordance with OC San’s Investment Policy that requires the report be submitted to the governing body following the end of each quarter. None of the portfolios are currently invested in reverse repurchase agreements. All investments are in compliance with the Investment Policy and the California Government Code. Sufficient funds are available for OC San to meet its operating expenditure requirements for the next six months. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·First Quarter Treasurer’s Report for the period ended September 30, 2025 Orange County Sanitation District Printed on 11/4/2025Page 1 of 1 OC6SAN ORANGE COUNTY SANITATION DISTRICT October 31, 2025 STAFF REPORT Treasurer’s Report For the Period Ended September 30, 2025 SUMMARY Section 18.0 of the Orange County Sanitation District's (OC San) Investment Policy includes quarterly reporting requirements for OC San's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by Insight Investment (Insight), OC San’s external money manager. The ongoing monitoring of OC San's investment program by staff and Callan LLC (Callan), OC San's independent investment advisor, indicates that OC San’s investments are in compliance with OC San's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for OC San to meet budgeted expenditures for the next six months. OC San’s portfolios do not include any reverse repurchase agreements or derivative securities. ADDITIONAL INFORMATION Performance Reports The Quarterly Investment Report, prepared by Insight, and the Investment Measurement Service Quarterly Review, prepared by Callan, as of September 30, 2025, are attached for reference. The Liquid Operating portfolio, with an average maturity of 116 days, consists entirely of high quality fixed income investments consistent with OC San’s investment policy. Also included within the attachments are: • Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond index for the long-term portfolio as identified in the investment policy. • A listing of individual securities held at the end of each reporting period. Treasurer’s Report For the Period Ended September 30, 2025 Page 2 of 4 • Cost and market values of the portfolios: Liquid Operating Long-Term Cost $65.2 M $625.5 M Market Value $65.4 M $635.1 M • Modified duration of the portfolio compared to the Benchmark. Liquid Operating Long-Term OC San Policy < 0.50 < 5.00 Benchmark 0.16 2.50 Portfolio 0.23 2.66 • The percent of the Liquid Operating Monies portfolio maturing within 90 days: 43.5% • Average portfolio credit quality: Liquid Operating – AA Long-Term – AA • Percent of portfolio with credit ratings below “A” by any rating agency and a description of such securities: Liquid Operating – Percent of portfolio – 0.00% Long-Term – Percent of portfolio – 0.00% • All investments are in compliance with the investment policy and the California Government Code, except for the following Lehman Brother holdings that OC San is pursuing collection through the bankruptcy court: Lehman Brothers Note-Defaulted $600,000 par value purchased 9/19/2008 Lehman Brothers Note-Defaulted $2,000,000 par value purchased 9/18/2008 Treasurer’s Report For the Period Ended September 30, 2025 Page 3 of 4 Portfolio Market Values 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Long-Term ($) 685,660,419.69 632,610,453.12 640,894,886.64 635,116,746.23 Liquid Operating ($) 40,346,159.38 115,617,964.36 192,925,191.11 65,023,641.82 Total $726,006,579.07 $748,228,417.48 $833,820,077.75 $700,140,388.05 Orange County Sanitation District Account Balances as of September 30, 2025 Investment Accounts Balances September 30, 2025 Insight/U.S. Bank – Long-Term Portfolio Insight/U.S. Bank – Liquid Operating Portfolio State of California LAIF PARS Section 115 Trust - Moderate PARS Section 115 Trust - Balanced Banc of California – General Banc of California – Workers’ Compensation Banc of California – Property, Liability Claim, Exp U.S. Bank – Mount Langley BNY Mellon OCIP Reserve Petty Cash TOTAL Debt Service Reserves w/Trustees $635,116,746 65,023,642 56,712,599 11,948,248 6,154,192 20,850,610 100,000 50,000 317,531 250,000 1,500 $796,525,068 $30,197 900,000,000.00 800,000,000.00 700,000,000.00 600,000,000.00 500,000,000.00 400,000,000.00 300,000,000.00 200,000,000.00 100,000,000.00 Portfolio Market Values 12/31/24 03/31/25 6/30/25 ■ Liquid Operating ($M) ■Long-Term ($M) 9/30/25 Treasurer’s Report For the Period Ended September 30, 2025 Page 4 of 4 ATTACHMENTS 1. Insight Quarterly Review 2. Insight Quarterly Investment Report 3. Insight - U.S. Bank Investment Detail 4. Callan Investment Measurement Service Quarterly Review Report 5. Investment Transactions and Balances in LAIF 6. BNY Mellon Owner Controlled Insurance Program Escrow Account 7. PARS Section 115 Trust Account Report 8. PARS - U.S. Bank Investment Detail /ŶƐŝŐŚƚYƵĂƌƚĞƌůǇZĞǀŝĞǁ K=HL=E:=J*(*- GJ9F?=;GMFLQK9FAL9LAGF<AKLJA;L G;K9F! 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DISCLOSURES AT THE BACK OF THIS DOCUMENT This document has been prepared by Insight North America LLC (INA), a registered investment adviser under the Investment Advisers Act of 1940 and regulated by the US Securities and Exchange Commission. INA is part of ‘Insight’ or ‘Insight Investment’, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited and Insight Investment International Limited. The performance of Insight is being presented to show the historical performance of the portfolio management team responsible for managing the strategy. The track records presented include all accounts managed by Insight with substantially similar investment objectives, policies and strategies for which the strategy management teams were responsible. Advisory services referenced herein are available in the US only through INA. INA and its Insight affiliates are part of the GIPS® firm Insight Investment, which claims compliance with GIPS. Please refer to the important disclosures at the back of this document. 3P0000 •Economic review and outlook •Portfolio update •Compliance summary •Important disclosures Agenda Insight INVESTMENT ►BNY I INVESTMENTS Economic review and outlook Insight INVESTMENT ►BNY I INVESTMENTS 5L0513US Source: Insight, as of September 30, 2025. Any projections or forecasts contained herein are based upon certain assumptions considered reasonable. Projections are speculative in nature and some or all of the assumptions underlying the projections may not materialize or vary significantly from the actual results. Accordingly, the projections are only an estimate. Opinions expressed herein are as of the date stated and are subject to change without notice. Insight assumes no responsibility to update such information or to notify a client of any changes. •The US economy is increasingly vulnerable to downside risks as the effects of tight policy via tariffs and immigration crackdowns continue to reverberate across the economy •While the Fed may still be concerned with the full inflationary effects of tariffs, the rising labor market stress should be the overriding factor in the upcoming rate decisions and may potentially open the door for more aggressive easing •We expect the Fed easing will help stabilize conditions, and as the drag from policy uncertainty and trade tensions fades, the economy should start reaccelerating in the first half of 2026 •Due to the ongoing government shutdown, updates to certain macroeconomic data used in this report will be delayed until federal government operations resume. Key takeaways 1.6 1.5 2.8 3.25 3.75 2.8 3.0 4.50 2.7Real GDP Consumer Price Index Policy rate (year-end) Insight INVESTMENT ►BNY I INVESTMENTS 6L0513US Source: Bureau of Labor Statistics, as of September 5, 2025. Revisions to nonfarm payrolls, thousands Job creation has flatlined A combination of dwindling labor supply and weak labor demand has curbed job creation -50 0 Latest estimate Initial estimate • • Insight INVESTMENT ►BNY I INVESTMENTS 7L0513US Source: Bureau of Labor Statistics, as of September 30, 2025. Job openings and unemployment level, millions of people Signs of softening labor market are in abundance For the first time in four years, there are now more unemployed people than the number of job openings 0 5 Job openings Unemployed More unemployed than job openings More job openings than unemployed Insight INVESTMENT ►BNY I INVESTMENTS 8L0513US Source: Business Roundtable, as of September 18, 2025. CEO economic outlook survey Business leaders are cautious about the economy The recently enacted tax bill buoyed capex plans, but the hiring outlook remains weak 20 40 60 80 100 120 140 160 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CEO Economic Outlook Survey Index Expected US employment, next six months Expected sales, next six months Insight INVESTMENT ►BNY I INVESTMENTS 9L0513US Source: Census Bureau, as of September 2, 2025. Value of construction put in place, $bn (annualized) The AI boom spurred a data center arms race The rise of AI has sparked a surge in data centers investments that cushioned the blow of trade and policy uncertainty $0 Computer/electronic/electrical manufacturing Data center General office CHIPS and Science Act Launch of ChatGPT Insight INVESTMENT ►BNY I INVESTMENTS 10L0513US Source: Macrobond, Insight Investment, as of September 11, 2025. Core goods versus services, % year-over-year Inflation is picking up steam Prices of tariff-exposed categories of goods are drifting higher -4 -2 0 2 4 6 8 10 12 14 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Core goods Core services Insight INVESTMENT ►BNY I INVESTMENTS 11L0513US Source: US Customs and Border Protection, Insight Investment, as of September 23, 2025 Tariff duties assessed on imported goods, FY2025, $bn Trump tariffs have brought in well over $100 billion so far this year Markets increasingly look at tariff revenue as a remedy for the deteriorating fiscal outlook $4.8 $3.0 $18.3 $7.6 $0.5 $28.9 $5.7 $2.0 $51.6 $0.3 $0.3 $0.2 Steel Aluminum Automobiles Automobile parts Copper China and Hong Kong Mexico Canada Reciprocal all countries Brazil India Japan Se c t i o n 2 3 2 IE E P A Insight INVESTMENT -- I -- ►BNY I INVESTMENTS 12L0513US Source: Federal Reserve Bank of St. Louis, Federal Reserve, as of September 17, 2025. Fed Funds target rate Policy is likely only modestly restrictive While most members of the FOMC believe that more cuts are warranted, opinions vary on how restrictive the current policy is 0 1 2 3 4 5 6 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 FOMC range of longer-run federal funds rate estimates Median longer-run federal funds rate Federal funds target rate Insight INVESTMENT - ►BNY I INVESTMENTS 13L0513US Source: The American Bankruptcy Institute, as of October 6, 2025 Chapter 11 bankruptcies, 3-month moving average There has been an uptick in chapter 11 filings Policy uncertainty, still elevated interest rates and higher tariffs are pushing more companies to the brink 200 400 600 800 Insight INVESTMENT ►BNY I INVESTMENTS Portfolio update Insight INVESTMENT ►BNY I INVESTMENTS Orange County Liquid Operating Insight INVESTMENT ►BNY I INVESTMENTS 16P0000 Portfolio summary ● Value: $65,371,907 ● Benchmark: ICE BofA US 3-Month Treasury Bill Performance – Gross of Fees blank 3 months Year to date 1 year Since inception % % % % p.a. Portfolio 1.14 3.38 4.60 4.99 Benchmark 1.08 3.17 4.38 4.79 Relative 0.06 0.20 0.22 0.20 Performance – Net of Fees blank 3 months Year to date 1 year Since inception % % % % p.a. Portfolio 1.13 3.36 4.58 4.96 Benchmark 1.08 3.17 4.38 4.79 Relative 0.05 0.18 0.20 0.17 Insight INVESTMENT ►BNY I INVESTMENTS 17P0000 Summary Portfolio Benchmark Relative Top issuers* (%)Holding Issuer overweight*Contribution to duration (years) Portfolio Benchmark Relative Total 0.18 -0.18 Rating (%) Visa In e a R l 4.4 70.8 24.7 0.1 100.0 0 50 AAA AA A BBB BIG Cash NR Portfolio Benchmark Duration (%) F r r p a n 11.3 12.4 17.3 13.2 31.5 14.3 100.0 0 40 80 1 day 2-7 days 8-30 days 31-90 91-180 181+Portfolio Benchmark Insight INVESTMENT ■ ■ ■ ■ ►BNY I INVESTMENTS 18P0000 Sector (%) Market Value Portfolio Benchmark Relative Total 100.0 100.0 -I I I I Insight INVESTMENT ►BNY I INVESTMENTS 19P0000 Ratings AAA 0.00 -0.00 AA 0.15 0.16 -0.01 A 0.08 -0.08 BBB --- BIG --- NR ---0.0 0.2 0.1 0.2 0 AAA AA A BBB BIG NR Portfolio Benchmark Duration 1 day --- 2-7 days --- 8-30 days 0.01 -0.01 31-90 0.02 0.16 -0.14 91-180 0.11 -0.11 181+0.09 -0.09 0.0 0.0 0.1 0.10.2 0 1 day 2-7 days 8-30 days 31-90 91-180 181+ Portfolio Benchmark Insight INVESTMENT ■ ■ ■ ■ ►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range County Long Term Insight INVESTMENT ►BNY I INVESTMENTS 29P0000 Portfolio summary ● ● Performance – Gross of Fees blank 3 months Year to date 1 year Since inception % % % % p.a. Portfolio 1.33 5.09 4.40 5.75 Benchmark 1.23 4.74 3.99 5.55 Relative 0.11 0.36 0.41 0.20 Source: Insight/Northern Trust. Inception date for performance purposes: February 29, 2024. Benchmark history provided in Important Disclosures section. blank 3 months Year to date 1 year Since inception % % % % p.a. Portfolio 1.33 5.07 4.37 5.72 Benchmark 1.23 4.74 3.99 5.55 Relative 0.10 0.34 0.38 0.17 Performance – Net of Fees Insight INVESTMENT ►BNY I INVESTMENTS 30P0000 Summary Portfolio Benchmark Relative Top issuers* (%)Holding Issuer overweight*Contribution to duration (years) Portfolio Benchmark Relative Total 0.77 0.02 0.75 Rating (%) Verizo c a u F i 15.7 61.2 23.1 3.8 80.3 15.9 0 50 AAA AA A BBB BIG Cash NR Portfolio Benchmark Duration (%) n u o C R 8.7 19.7 29.4 24.7 17.5 5.1 33.3 27.1 23.4 11.1 0 0-1 1-2 2-3 3-4 4-5 5+Portfolio Benchmark Insight INVESTMENT ■ ■ ■ ■ ►BNY I INVESTMENTS 31P0000 Sector (%) Market Value Portfolio Benchmark Relative Total 100.0 100.0 I I I I --■ I I I I Insight INVESTMENT ►BNY I INVESTMENTS 32P0000 Sector Contribution to duration (years) Portfolio Benchmark Relative (CTD) Total 2.7 2.5 I I I I ■ I I I Insight INVESTMENT ►BNY I INVESTMENTS 33P0000 Ratings AAA 0.23 0.10 0.13 AA 1.94 1.99 -0.05 A 0.49 0.41 0.08 BBB --- BIG --- NR ---0.2 1.9 0.5 0.1 2.0 0.4 0 1 2 AAA AA A BBB BIG NR Portfolio Benchmark Duration 0-1 0.05 0.05 0.00 1-2 0.30 0.50 -0.20 2-3 0.73 0.67 0.06 3-4 0.84 0.81 0.03 4-5 0.74 0.47 0.27 5+--- 0.1 0.3 0.7 0.8 0.7 0.0 0.5 0.7 0.8 0.5 0 0-1 1-2 2-3 3-4 4-5 5+ Portfolio Benchmark Insight INVESTMENT ■ ■ ■ ■ ►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ompliance summary Insight INVESTMENT ►BNY I INVESTMENTS 46P0000 1 & 2 – Please see Appendix 1 Reference:Orange County Sanitation District - Administrative Policy Directives and Procedures Manual - Investment Objectives and •10% minimum; 1-year max maturity Yes Federal Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 1-year max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal an the US Government , a federal agency, or a US Government-sponsored enterprise Yes Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 5-year max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Yes Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max issuer; 1-year max maturity Yes Corporate Medium-Term Notes •"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5-year max maturity; Issued by corporations organized and operating within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S. 1 with AUM >$500 million Yes Non- Agency Asset- -Backed Securities, CMOs •"AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5-year max maturity; 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 bo Yes Negotiable Certificates of Deposit (NCD) "A" rating or better long-term debt by a NRSRO; or highest short-term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 1-year max maturity; Negotiable certificates of deposit 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 Yes Certificates of Deposit 5% max issuer; 1-year max maturity; 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 pro the two most recently completed fiscal years; Collateral must comply with California Government Code Yes Banker’s Acceptances A-1 rated or highest short-term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Yes Portfolio compliance report As of September 30, 2025 Insight INVESTMENT ►BNY I INVESTMENTS 47P0000 Reference:Orange County Sanitation District - Administrative Policy Directives and Procedures Manual - Investment Objectives and •A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million; 40% max; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Yes Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Yes Local Agency Investment Fund (LAIF)No more than the statutory maximum may be invested in LAIF; Not used by investment adviser; Investment of OCSD 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 the policy Yes Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP) 15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Yes Repurchase Agreements 20% max; 102% collateralization, 1-year max maturity Yes Reverse Repurchase Agreements 5% max, 90 days max maturity Yes Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE- REMICS (Real Estate Mortgage Investment Conduits) Yes Securities Downgrade If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’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 and reported quarte OCSD General Manager, the Administration Committee and Board of Directors Yes Avg Duration •Not to exceed 180 days in Liquid Operating account Yes Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Yes Portfolio compliance report (continued) As of September 30, 2025 Insight INVESTMENT ►BNY I INVESTMENTS 48P0000 2 – Please see Appendix 1 Portfolio compliance report (continued) As of September 30, 2025 Reference:Orange County Sanitation District - Administrative Policy Directives and Procedures Manual - Investment Objectives and •5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual Funds) Yes Maximum Maturity 1-year max maturity per security in Liquid Operating account Yes Maximum Maturity 5-year max maturity per security in Long Term account Yes Maximum Duration 5-year max portfolio effective duration in Long Term account Yes Maximum Duration Duration of portfolio should be between 80% to 120% in Long Term account Yes Insight INVESTMENT ►BNY I INVESTMENTS Important disclosures Insight INVESTMENT ►BNY I INVESTMENTS 50P0000 Benchmark history Insight INVESTMENT ►BNY I INVESTMENTS 51P0000 Benchmark history Insight INVESTMENT ►BNY I INVESTMENTS 52P0000 Past performance is not indicative of future results. Investment in any strategy involves a risk of loss which may partly be due to exchange rate fluctuations. The performance results shown, whether net or gross of investment management fees, reflect the reinvestment of dividends and/or income and other earnings. Any gross of fees performance does not include fees and charges and these can have a material detrimental effect on the performance of an investment. The performance shown is for the stated time period(s) only. Any target performance aims are not a guarantee, may not be achieved and a capital loss may occur. Funds which have a higher performance aim generally take more risk to achieve this and so have a greater potential for the returns to be significantly different than expected. Investments are subject to risks, including loss of principal. There can be no guarantee that any investment strategy will meet the liability funding needs of a particular client. Performance information for certain accounts may reflect performance achieved while the account was managed at a prior firm. In addition, the performance and customized benchmark information for these periods are based on Information from 3rd parties that Insight believes to be accurate, but Insight has not independently verified such information and no representation is made regarding its accuracy or completeness. The quoted benchmarks do not reflect deductions for fees, expenses or taxes. These benchmarks are unmanaged and cannot be purchased directly by investors. Benchmark performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be material factors relevant to any such comparison such as differences in volatility, and regulatory and legal restrictions between the indices shown and the strategy. Any currency conversions performed for this presentation, use FX rates as per WM Reuters 4pm spot rates, unless noted otherwise. Funds and portfolios with an ESG objective follow a sustainable or ESG related investment approach, which may cause them to perform differently than funds that are not required to integrate sustainable investment criteria when selecting securities. Funds and portfolios with no ESG objective are not required to integrate sustainable investment criteria when selecting securities so any ESG approach shown is only indicative and there is no guarantee that the specific approach will be applied across the whole portfolio. This is a client report intended for professional clients only. This material is for professional clients only and is not intended for distribution to retail clients. This document must not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted. This document is intended only for the parties to whom it was delivered or its authorised agents and should not be copied or passed to any other person. Please contact the Client Services Team if there has been any change in your financial circumstances or risk tolerance since the previous valuation that could affect the investment objective of your portfolio. Insight obtains market data and prices from an independent pricing source for all of our currency positions on a daily basis. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker. Some information contained in this client report comes from external sources which Insight believes to be reliable. A list of sources is available on request. All statistics represent month end figures unless otherwise noted. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Insight does not provide tax or legal advice to its clients and all investors are strongly urged to seek professional advice regarding any potential strategy or investment. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security. Insight Investment is the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL) and Insight North America LLC (INA), each of which provides asset management services. This group of companies may be referred to as 'Insight' or 'Insight Investment'. Please compare the information provided in this statement to the information provided in the statement received from your Custodian. This report is not intended to replace your custodial statement which is your official record for all pertinent account information. Please notify us promptly if you do not receive from your custodian on at least a quarterly basis account statements that contain the amount of funds and each security in the account at the end of the period and all transactions in the account during that period. Disclosures Insight INVESTMENT ►BNY I INVESTMENTS 53P0000 For clients based in North America: This material is for professional clients only and is not intended for distribution to retail clients.Investment advisory services in North America are provided through two different investment advisers registered with the Securities and Exchange Commission (SEC), using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with other global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as 'Insight' or 'Insight Investment'. INA is registered with the CFTC as a Commodity Trading Advisor and a Commodity Pool Operator and are members of the NFA. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategy’s holdings may differ substantially from the securities that comprise the indices shown. The ICE BofA 3 Month US T-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The ICE BofA 6 Month US T-Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. The ICE BofA 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 5-Year US Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The ICE BofA 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. © 2025 Insight Investment. All rights reserved. Disclosures (continued) Insight INVESTMENT ►BNY I INVESTMENTS /ŶƐŝŐŚƚͲh͘^͘ĂŶŬ/ŶǀĞƐƚŵĞŶƚĞƚĂŝů Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio USD-U.S._DOLLAR Cash & Cash Equivalents CASH - INCOME CUSIP: Ticker: 38.56% 25,074,644.4100 1.0000 30-Sep-25 25,074,644.41 - - - - Income Cash & Cash Equivalents CASH - PRINCIPAL CUSIP: Ticker: -38.56% -25,074,644.4100 1.0000 30-Sep-25 -25,074,644.41 - - - - Principal Cash & Cash Equivalents FIRST AM GOVT OB FD CL Z CUSIP: 31846V567 Ticker: FGZXX 0.09% 59,599.8800 1.0000 30-Sep-25 59,599.88 59,599.88 - 2,382.60 4.00% Principal Cash & Cash Equivalents U S TREASURY BILL 1/13/26 CUSIP: 912797SF5 Ticker: 3.88% 2,550,000.0000 0.9890 30-Sep-25 2,521,848.00 2,518,624.64 3,223.36 97,880.40 3.88% Principal Cash & Cash Equivalents WALMART INC C P 10/20/25 CUSIP: 93114EXL6 Ticker: 5.37% 3,500,000.0000 0.9978 30-Sep-25 3,492,440.00 3,490,034.72 2,405.28 145,493.09 4.17% Principal Fixed Income BRISTOL MYERS 0.750% 11/13/25 CUSIP: 110122DN5 Ticker: 1.87% 1,221,000.0000 0.9959 30-Sep-25 1,216,018.32 1,210,816.86 5,201.46 9,157.50 0.75% Principal Fixed Income CATERPILLAR MTN 5.74486% 2/27/26 CUSIP: 14913UAK6 Ticker: CM55726 1.54% 1,000,000.0000 1.0010 30-Sep-25 1,001,010.00 1,001,550.00 -540.00 57,448.58 5.74% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 1 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income DEERE JOHN MTN 4.800% 1/09/26 CUSIP: 24422EWP0 Ticker: 0.94% 613,000.0000 1.0019 30-Sep-25 614,183.09 614,152.44 30.65 29,424.00 4.79% Principal Fixed Income ENTERPRISE PRODS LLC 5.050% 1/10/26 CUSIP: 29379VCC5 Ticker: 3.08% 2,000,000.0000 1.0020 30-Sep-25 2,004,000.00 2,011,880.00 -7,880.00 101,000.00 5.04% Principal Fixed Income EQUITABLE MTN 1.000% 1/09/26 CUSIP: 29449WAE7 Ticker: EF11026 1.52% 1,000,000.0000 0.9906 30-Sep-25 990,610.00 974,670.00 15,940.00 10,000.00 1.01% Principal Fixed Income F F C B DEB 3.320% 2/25/26 CUSIP: 3133ENJ35 Ticker: 2.30% 1,500,000.0000 0.9972 30-Sep-25 1,495,725.00 1,491,789.29 3,935.71 49,800.00 3.33% Principal Fixed Income F F C B DEB 3.875% 2/02/26 CUSIP: 3133EN7J3 Ticker: 0.38% 250,000.0000 0.9995 30-Sep-25 249,880.00 249,342.50 537.50 9,687.50 3.88% Principal Fixed Income F F C B DEB 4.125% 2/03/26 CUSIP: 3133ER2H3 Ticker: 1.35% 880,000.0000 1.0006 30-Sep-25 880,545.60 879,076.00 1,469.60 36,300.00 4.12% Principal Fixed Income F F C B DEB 4.375% 6/23/26 CUSIP: 3133EPNG6 Ticker: 0.55% 357,000.0000 1.0039 30-Sep-25 358,406.58 357,449.46 957.12 15,618.75 4.36% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 2 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F F C B DEB 4.500% 3/02/26 CUSIP: 3133EPCF0 Ticker: 2.93% 1,900,000.0000 1.0022 30-Sep-25 1,904,123.00 1,902,527.00 1,596.00 85,500.00 4.49% Principal Fixed Income F F C B DEB 4.4237% 3/24/26 CUSIP: 3133ERHS3 Ticker: FFC5426L 1.24% 805,000.0000 1.0002 30-Sep-25 805,144.90 805,185.01 -40.11 35,610.75 4.42% Principal Fixed Income F F C B DEB 4.33989% 10/30/25 CUSIP: 3133ERZL8 Ticker: FFC4525 6.38% 4,150,000.0000 1.0000 30-Sep-25 4,150,124.50 4,151,132.12 -1,007.62 183,515.31 4.42% Principal Fixed Income F F C B DEB 4.42739% 6/03/26 CUSIP: 3133ERGC9 Ticker: FFC4926 1.08% 700,000.0000 1.0002 30-Sep-25 700,168.00 700,198.80 -30.80 30,991.74 4.43% Principal Fixed Income F F C B DEB 4.46522% 9/14/26 CUSIP: 3133ERHG9 Ticker: FFC4426V 3.09% 2,010,000.0000 1.0008 30-Sep-25 2,011,547.70 2,011,668.30 -120.60 89,750.87 4.46% Principal Fixed Income F F C B DEB 8.55978% 2/23/26 CUSIP: 3133EPBJ3 Ticker: FFC8526 0.31% 200,000.0000 1.0014 30-Sep-25 200,282.00 200,084.00 198.00 17,119.57 8.55% Principal Fixed Income F H L B DEB CUSIP: 3130AL7E8 Ticker: 1.52% 1,000,000.0000 0.9869 30-Sep-25 986,880.00 979,050.00 7,830.00 6,000.00 0.61% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 3 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F H L B DEB 0.520% 1/29/26 CUSIP: 3130AKVY9 Ticker: 0.63% 415,000.0000 0.9890 30-Sep-25 410,414.25 407,376.45 3,037.80 2,158.00 0.53% Principal Fixed Income F H L B DEB 0.800% 2/25/26 CUSIP: 3130AL7B4 Ticker: FHL0826AB 0.76% 500,000.0000 0.9878 30-Sep-25 493,905.00 490,070.00 3,835.00 4,000.00 0.81% Principal Fixed Income F H L B DEB 0.850% 2/26/26 CUSIP: 3130ALGR9 Ticker: 0.76% 500,000.0000 0.9877 30-Sep-25 493,830.00 491,397.50 2,432.50 4,250.00 0.86% Principal Fixed Income F H L B DEB 0.900% 3/03/26 CUSIP: 3130ALJ39 Ticker: 1.52% 1,000,000.0000 0.9877 30-Sep-25 987,670.00 980,810.00 6,860.00 9,000.00 0.91% Principal Fixed Income F H L B DEB 1.000% 5/26/26 CUSIP: 3130AMH62 Ticker: 0.63% 415,000.0000 0.9817 30-Sep-25 407,393.05 405,372.00 2,021.05 4,150.00 1.02% Principal Fixed Income F H L B DEB 2.625% 12/12/25 CUSIP: 3130A6ZQ3 Ticker: 0.31% 205,000.0000 0.9972 30-Sep-25 204,417.80 203,935.85 481.95 5,381.25 2.63% Principal Fixed Income F H L B DEB 4.125% 3/13/26 CUSIP: 3130AUU36 Ticker: 0.77% 500,000.0000 1.0012 30-Sep-25 500,600.00 499,675.00 925.00 20,625.00 4.12% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 4 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F H L B DEB 4.380% 2/24/26 CUSIP: 3130B6US3 Ticker: 0.77% 500,000.0000 1.0000 30-Sep-25 499,990.00 499,999.20 -9.20 21,900.00 4.38% Principal Fixed Income F H L B DEB 4.425% 2/23/26 CUSIP: 3130B07B9 Ticker: 0.31% 200,000.0000 1.0005 30-Sep-25 200,090.00 200,141.48 -51.48 8,850.00 4.42% Principal Fixed Income F H L B DEB 4.500% 3/13/26 CUSIP: 3130AV6J6 Ticker: 2.79% 1,810,000.0000 1.0029 30-Sep-25 1,815,285.20 1,812,896.00 2,389.20 81,450.00 4.49% Principal Fixed Income F H L M C M T N 6.930% 6/01/26 CUSIP: 3134A1Z60 Ticker: 2.08% 1,325,000.0000 1.0203 30-Sep-25 1,351,871.00 1,354,412.35 -2,541.35 91,822.50 6.79% Principal Fixed Income F N M A 0.540% 10/27/25 CUSIP: 3136G45C3 Ticker: 4.76% 3,100,000.0000 0.9974 30-Sep-25 3,091,878.00 3,089,739.00 2,139.00 16,740.00 0.54% Principal Fixed Income F N M A 5.430% 6/18/26 CUSIP: 3135G07G2 Ticker: 2.55% 1,660,000.0000 1.0007 30-Sep-25 1,661,162.00 1,660,493.02 668.98 90,138.00 5.43% Principal Fixed Income FEDERAL HOME LOAN 0.00001% 11/03/25 CUSIP: 3130B5RZ3 Ticker: 1.54% 1,000,000.0000 1.0000 30-Sep-25 999,990.00 999,811.00 179.00 0.10 0.00% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 5 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income FEDERAL HOME LOAN 0.00001% 11/04/25 CUSIP: 3130B5Q68 Ticker: 3.08% 2,000,000.0000 1.0000 30-Sep-25 1,999,980.00 1,999,623.80 356.20 0.20 0.00% Principal Fixed Income FEDERAL HOME LOAN 0.00001% 12/08/25 CUSIP: 3130AXZ50 Ticker: 0.15% 100,000.0000 1.0003 30-Sep-25 100,028.00 100,106.48 -78.48 0.01 0.00% Principal Fixed Income GENERAL DYNAMICS 1.150% 6/01/26 CUSIP: 369550BN7 Ticker: 1.68% 1,113,000.0000 0.9819 30-Sep-25 1,092,832.44 1,087,478.91 5,353.53 12,799.50 1.17% Principal Fixed Income INTERCONTINENTAL 3.750% 12/01/25 CUSIP: 45866FAD6 Ticker: 0.78% 505,000.0000 0.9990 30-Sep-25 504,484.90 501,364.00 3,120.90 18,937.50 3.75% Principal Fixed Income INTL BK M T N 3.126% 11/20/25 CUSIP: 45905U6L3 Ticker: IBM3125 1.15% 750,000.0000 0.9985 30-Sep-25 748,837.50 742,575.00 6,262.50 23,445.00 3.13% Principal Fixed Income JPMORGAN CHASE CO 3.200% 6/15/26 CUSIP: 46625HRS1 Ticker: 2.20% 1,439,000.0000 0.9942 30-Sep-25 1,430,711.36 1,425,012.92 5,698.44 46,048.00 3.22% Principal Fixed Income MICROSOFT CORP 3.125% 11/03/25 CUSIP: 594918BJ2 Ticker: 3.23% 2,100,000.0000 0.9990 30-Sep-25 2,097,795.00 2,077,635.00 20,160.00 65,625.00 3.13% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 6 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income MORGAN STANLEY MTN 3.875% 1/27/26 CUSIP: 61746BDZ6 Ticker: 2.30% 1,500,000.0000 0.9983 30-Sep-25 1,497,465.00 1,491,645.00 5,820.00 58,125.00 3.88% Principal Fixed Income ONCOR ELEC DELIVERY 0.550% 10/01/25 CUSIP: 68233JBZ6 Ticker: 3.08% 2,000,000.0000 1.0000 30-Sep-25 2,000,000.00 1,940,440.00 59,560.00 11,000.00 0.55% Principal Fixed Income PECO ENERGY CO 3.150% 10/15/25 CUSIP: 693304AT4 Ticker: 1.48% 965,000.0000 0.9995 30-Sep-25 964,536.80 956,797.50 7,739.30 30,397.50 3.15% Principal Fixed Income PNC FINANCIAL 1.150% 8/13/26 CUSIP: 693475BB0 Ticker: 1.85% 1,229,000.0000 0.9765 30-Sep-25 1,200,057.05 1,193,912.05 6,145.00 14,133.50 1.18% Principal Fixed Income PROCTER GAMBLE CO 0.550% 10/29/25 CUSIP: 742718FL8 Ticker: 2.62% 1,706,000.0000 0.9972 30-Sep-25 1,701,189.08 1,693,699.74 7,489.34 9,383.00 0.55% Principal Fixed Income PROLOGIS L P 3.250% 6/30/26 CUSIP: 74340XBU4 Ticker: 0.79% 519,000.0000 0.9939 30-Sep-25 515,823.72 513,763.29 2,060.43 16,867.50 3.27% Principal Fixed Income RESOLUTION FDG STRIP 4/15/26 CUSIP: 76116EHF0 Ticker: 4.52% 3,000,000.0000 0.9792 30-Sep-25 2,937,480.00 2,933,704.40 3,775.60 0.30 0.00% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 7 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046600 OCSD LIQUID OPERATING PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income TOYOTA MTR CR MTN 5.400% 11/10/25 CUSIP: 89236TKK0 Ticker: 1.54% 1,000,000.0000 1.0010 30-Sep-25 1,001,030.00 1,001,760.00 -730.00 54,000.00 5.39% Principal Fixed Income U S TREASURY NT 3.875% 1/15/26 CUSIP: 91282CGE5 Ticker: 3.81% 2,475,000.0000 0.9997 30-Sep-25 2,474,257.50 2,471,044.42 3,213.08 95,906.25 3.88% Principal Fixed Income U S TREASURY NT 5.549% 10/31/25 CUSIP: 91282CJD4 Ticker: 3.08% 2,000,000.0000 0.9998 30-Sep-25 1,999,660.00 2,001,530.15 -1,870.15 110,980.00 5.55% Principal Fixed Income VISA INC 3.150% 12/14/25 CUSIP: 92826CAD4 Ticker: 3.07% 2,000,000.0000 0.9982 30-Sep-25 1,996,380.00 1,990,560.00 5,820.00 63,000.00 3.16% Principal USD-U.S._DOLLAR Cash & Cash Equivalents 9.34%6,073,887.88 6,068,259.24 5,628.64 245,756.09 4.05% Fixed Income 90.66%58,949,693.34 58,759,353.29 190,340.05 1,758,037.67 2.98% Total USD-U.S._DOLLAR 100.00% 65,023,581.22 64,827,612.53 195,968.69 2,003,793.76 3.08% Total (U.S. DOLLAR) 100.00% 65,023,641.82 64,827,612.53 196,029.29 2,003,793.77 3.08% Grand Total (U.S. DOLLAR) 100.00% 65,023,641.82 64,827,612.53 196,029.29 2,003,793.77 3.08% INVESTMENT - DETAIL Run Date : 10/30/2025 Page 8 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio USD-U.S._DOLLAR Cash & Cash Equivalents CASH - INCOME CUSIP: Ticker: 16.91% 107,389,358.6500 1.0000 30-Sep-25 107,389,358.65 - - - - Income Cash & Cash Equivalents CASH - PRINCIPAL CUSIP: Ticker: -16.91% -107,389,358.6500 1.0000 30-Sep-25 -107,389,358.65 - - - - Principal Cash & Cash Equivalents FIRST AM GOVT OB FD CL Z CUSIP: 31846V567 Ticker: FGZXX 0.24% 1,540,539.1700 1.0000 30-Sep-25 1,540,539.17 1,540,539.17 - 61,585.56 4.00% Principal Fixed Income AIG GLOBAL FDG MTN 4.900% 1/07/28 CUSIP: 00138CBD9 Ticker: 0.82% 5,091,000.0000 1.0170 30-Sep-25 5,177,292.45 5,091,000.00 86,292.45 249,459.00 4.82% Principal Fixed Income AMERICAN EXP 4.560% 12/17/29 CUSIP: 02582JKM1 Ticker: AE44529 1.70% 10,636,000.0000 1.0147 30-Sep-25 10,792,242.84 10,633,637.74 158,605.10 485,001.60 4.49% Principal Fixed Income AMERICAN HONDA MTN 5.125% 7/07/28 CUSIP: 02665WEM9 Ticker: 0.16% 1,000,000.0000 1.0254 30-Sep-25 1,025,430.00 988,260.00 37,170.00 51,250.00 5.00% Principal Fixed Income BANK NEW YORK MTN 3.992% 6/13/28 CUSIP: 06406RBG1 Ticker: 0.39% 2,500,000.0000 0.9996 30-Sep-25 2,499,050.00 2,403,150.00 95,900.00 99,800.00 3.99% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 9 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income BANK OF AMERICA 4.979% 1/24/29 CUSIP: 06051GMK2 Ticker: 0.52% 3,250,000.0000 1.0185 30-Sep-25 3,310,060.00 3,250,000.00 60,060.00 161,817.50 4.89% Principal Fixed Income BANK OF AMERICA MTN 3.824% 1/20/28 CUSIP: 06051GGF0 Ticker: 0.98% 6,275,000.0000 0.9954 30-Sep-25 6,245,821.25 5,907,613.65 338,207.60 239,956.00 3.84% Principal Fixed Income BANK OF AMERICA MTN 3.970% 3/05/29 CUSIP: 06051GHG7 Ticker: 0.71% 4,500,000.0000 0.9951 30-Sep-25 4,478,130.00 4,305,375.00 172,755.00 178,650.00 3.99% Principal Fixed Income BANK OF NEW YORK MTN 3.950% 11/18/25 CUSIP: 06406HCQ0 Ticker: 0.24% 1,500,000.0000 0.9996 30-Sep-25 1,499,385.00 1,537,365.00 -37,980.00 59,250.00 3.95% Principal Fixed Income BMW VEH OWNER TR 5.470% 2/25/28 CUSIP: 05592XAD2 Ticker: BVO5428 0.13% 819,158.0700 1.0071 30-Sep-25 824,941.33 819,012.92 5,928.41 44,807.95 5.43% Principal Fixed Income CAPITAL ONE PRIME 4.760% 8/15/28 CUSIP: 14043KAK1 Ticker: 0.83% 5,240,000.0000 1.0086 30-Sep-25 5,285,064.00 5,252,690.60 32,373.40 249,424.00 4.72% Principal Fixed Income CATERPILLAR FINL MTN 3.600% 8/12/27 CUSIP: 14913R3A3 Ticker: 0.51% 3,250,000.0000 0.9958 30-Sep-25 3,236,285.00 3,213,062.50 23,222.50 117,000.00 3.62% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 10 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income CHASE ISSUE TR 4.600% 1/16/29 CUSIP: 161571HV9 Ticker: 1.28% 8,040,000.0000 1.0095 30-Sep-25 8,116,138.80 8,038,775.51 77,363.29 369,840.00 4.56% Principal Fixed Income CITIBANK N A 4.838% 8/06/29 CUSIP: 17325FBK3 Ticker: 1.21% 7,500,000.0000 1.0242 30-Sep-25 7,681,200.00 7,501,725.00 179,475.00 362,850.00 4.72% Principal Fixed Income CNH EQUIPMENT 4.300% 8/15/28 CUSIP: 12674BAB1 Ticker: CE44328 0.64% 4,053,913.0000 1.0019 30-Sep-25 4,061,493.82 4,053,821.38 7,672.44 174,318.26 4.29% Principal Fixed Income COMCAST CORP 3.550% 5/01/28 CUSIP: 20030NCH2 Ticker: 0.78% 5,000,000.0000 0.9899 30-Sep-25 4,949,500.00 4,785,920.00 163,580.00 177,500.00 3.59% Principal Fixed Income CONSUMERS ENERGY CO 4.700% 1/15/30 CUSIP: 210518DX1 Ticker: 1.05% 6,500,000.0000 1.0212 30-Sep-25 6,637,865.00 6,427,980.00 209,885.00 305,500.00 4.60% Principal Fixed Income DEERE JOHN MTN 4.150% 9/15/27 CUSIP: 24422EWK1 Ticker: 0.32% 2,000,000.0000 1.0047 30-Sep-25 2,009,420.00 1,972,620.00 36,800.00 83,000.00 4.13% Principal Fixed Income DEERE JOHN MTN 4.750% 1/20/28 CUSIP: 24422EWR6 Ticker: 1.04% 6,500,000.0000 1.0192 30-Sep-25 6,624,605.00 6,580,745.00 43,860.00 308,750.00 4.66% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 11 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income DTE ELEC CO 4.250% 5/14/27 CUSIP: 23338VAW6 Ticker: 0.78% 4,956,000.0000 1.0050 30-Sep-25 4,980,730.44 4,962,368.16 18,362.28 210,630.00 4.23% Principal Fixed Income ERAC USA FINANCE 5.000% 2/15/29 CUSIP: 26884TAY8 Ticker: 1.17% 7,250,000.0000 1.0256 30-Sep-25 7,435,745.00 7,272,330.00 163,415.00 362,500.00 4.88% Principal Fixed Income F F C B DEB 1.125% 6/01/29 CUSIP: 3133EMHZ8 Ticker: 0.36% 2,500,000.0000 0.9087 30-Sep-25 2,271,700.00 2,238,215.00 33,485.00 28,125.00 1.24% Principal Fixed Income F F C B DEB 4.490% 3/05/29 CUSIP: 3133ER5D9 Ticker: 2.06% 12,975,000.0000 1.0104 30-Sep-25 13,109,421.00 13,043,789.50 65,631.50 582,577.50 4.44% Principal Fixed Income F H L M C 5.125% 2/13/30 CUSIP: 3134HA7E7 Ticker: 0.79% 5,000,000.0000 0.9981 30-Sep-25 4,990,650.00 5,019,150.00 -28,500.00 256,250.00 5.13% Principal Fixed Income F H L M C M T N 4.030% 10/10/29 CUSIP: 3134HAPK3 Ticker: 0.79% 5,000,000.0000 0.9973 30-Sep-25 4,986,250.00 4,939,200.00 47,050.00 201,500.00 4.04% Principal Fixed Income F H L M C M T N 4.500% 5/23/30 CUSIP: 3134HBSX0 Ticker: 0.99% 6,250,000.0000 1.0060 30-Sep-25 6,287,500.00 6,250,000.00 37,500.00 281,250.00 4.47% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 12 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F H L M C M T N 4.750% 12/18/29 CUSIP: 3134HAW33 Ticker: 1.58% 10,000,000.0000 1.0055 30-Sep-25 10,055,300.00 9,973,870.08 81,429.92 475,000.00 4.72% Principal Fixed Income F H L M C #786064 6.262% 1/01/28 CUSIP: 31348SWZ3 Ticker: 786064F 0.00% 212.1700 0.9994 30-Sep-25 212.05 207.01 5.04 13.29 6.27% Principal Fixed Income F H L M C MLTCL 5.069% 10/25/28 CUSIP: 3137HB3D4 Ticker: FHL5028 1.73% 10,716,000.0000 1.0270 30-Sep-25 11,005,653.48 10,850,787.19 154,866.29 543,194.08 4.94% Principal Fixed Income F H L M C MLTCL MT 3.350% 1/25/28 CUSIP: 3137FETN0 Ticker: FHL0428B 1.31% 8,440,000.0000 0.9878 30-Sep-25 8,336,863.20 8,126,748.44 210,114.76 282,740.03 3.39% Principal Fixed Income F H L M C MLTCL MT 3.850% 5/25/28 CUSIP: 3137FG6X8 Ticker: FHL3828B 1.14% 7,250,000.0000 0.9980 30-Sep-25 7,235,717.50 7,116,894.53 118,822.97 279,124.97 3.86% Principal Fixed Income F H L M C MLTCL MT 4.552% 8/15/32 CUSIP: 3133TCE95 Ticker: FHL3032 0.00% 1,278.4000 0.9813 30-Sep-25 1,254.48 1,279.75 -25.27 58.22 4.64% Principal Fixed Income F H L M C MLTCL MT 6.49999% 9/25/43 CUSIP: 31394JY35 Ticker: FHL9543 0.05% 279,914.1500 1.0218 30-Sep-25 286,016.28 317,002.75 -30,986.47 18,194.38 6.36% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 13 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F H L M C MLTCL MTG 3.120% 9/25/26 CUSIP: 3137BSRE5 Ticker: 0.89% 5,718,343.3400 0.9915 30-Sep-25 5,669,737.42 5,916,808.77 -247,071.35 178,412.31 3.15% Principal Fixed Income F H L M C MLTCL MTG 4.803% 5/25/29 CUSIP: 3137HDJJ0 Ticker: 1.41% 8,769,188.7000 1.0235 30-Sep-25 8,975,615.40 8,804,813.54 170,801.86 421,184.13 4.69% Principal Fixed Income F H L M C MLTCL MTG 5.180% 3/25/29 CUSIP: 3137HCKV3 Ticker: 1.03% 6,320,000.0000 1.0344 30-Sep-25 6,537,660.80 6,480,309.38 57,351.42 327,376.03 5.01% Principal Fixed Income F H L M C MLTCL MTG 5.400% 1/25/29 CUSIP: 3137HBPD0 Ticker: FHL5429 1.63% 10,000,000.0000 1.0373 30-Sep-25 10,372,700.00 10,244,140.63 128,559.37 540,000.00 5.21% Principal Fixed Income F H L M C STRIP 9/15/29 CUSIP: 3134A3U53 Ticker: FHL91529 0.34% 2,500,000.0000 0.8605 30-Sep-25 2,151,250.00 2,057,500.00 93,750.00 0.25 0.00% Principal Fixed Income F N M A STRIP 1/15/30 CUSIP: 31358DDG6 Ticker: 0.67% 5,000,000.0000 0.8485 30-Sep-25 4,242,500.00 4,144,100.00 98,400.00 0.50 0.00% Principal Fixed Income F N M A STRIP 5/15/30 CUSIP: 31358DDR2 Ticker: 1.32% 10,000,000.0000 0.8370 30-Sep-25 8,369,900.00 8,273,581.73 96,318.27 1.00 0.00% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 14 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F N M A #257179 4.500% 4/01/28 CUSIP: 31371NUC7 Ticker: 257179A 0.00% 1,470.2600 0.9988 30-Sep-25 1,468.44 1,554.94 -86.50 66.16 4.51% Principal Fixed Income F N M A #357969 5.000% 9/01/35 CUSIP: 31376KT22 Ticker: 357969A 0.00% 29,102.6200 1.0238 30-Sep-25 29,796.14 31,285.33 -1,489.19 1,455.13 4.88% Principal Fixed Income F N M A #745580 5.000% 6/01/36 CUSIP: 31403DJZ3 Ticker: 745580A 0.00% 28,137.2900 1.0238 30-Sep-25 28,807.80 30,247.60 -1,439.80 1,406.86 4.88% Principal Fixed Income F N M A #748678 5.000% 10/01/33 CUSIP: 31403GXF4 Ticker: 748678A 0.00% 390.6800 0.9979 30-Sep-25 389.88 419.97 -30.09 19.53 5.01% Principal Fixed Income F N M A #815971 5.000% 3/01/35 CUSIP: 31406PQY8 Ticker: 815971A 0.01% 35,531.6400 1.0228 30-Sep-25 36,341.41 38,196.51 -1,855.10 1,776.58 4.89% Principal Fixed Income F N M A #823358 6.503% 2/01/35 CUSIP: 31406XWT5 Ticker: 823358A 0.00% 11,059.8800 1.0185 30-Sep-25 11,263.93 10,973.47 290.46 719.22 6.39% Principal Fixed Income F N M A #826080 5.000% 7/01/35 CUSIP: 31407BXH7 Ticker: 826080A 0.00% 5,459.1900 1.0228 30-Sep-25 5,583.60 5,868.61 -285.01 272.96 4.89% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 15 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income F N M A #888336 5.000% 7/01/36 CUSIP: 31410F4V4 Ticker: 888336A 0.01% 46,260.0400 1.0234 30-Sep-25 47,343.45 49,729.57 -2,386.12 2,313.00 4.89% Principal Fixed Income F N M A #AL0869 4.500% 6/01/29 CUSIP: 3138EG6F6 Ticker: AL0869A 0.00% 1,464.2200 1.0011 30-Sep-25 1,465.77 1,548.56 -82.79 65.89 4.50% Principal Fixed Income F N M A #MA0022 4.500% 4/01/29 CUSIP: 31417YAY3 Ticker: MA0022A 0.00% 2,456.7200 1.0040 30-Sep-25 2,466.52 2,598.23 -131.71 110.55 4.48% Principal Fixed Income F N M A GTD REMIC 1.500% 4/25/29 CUSIP: 3136AJZP4 Ticker: 0.11% 694,852.0800 0.9688 30-Sep-25 673,151.85 634,775.70 38,376.15 10,422.78 1.55% Principal Fixed Income F N M A GTD REMIC 2.472% 2/25/41 CUSIP: 31397QRE0 Ticker: FNM2841 0.01% 54,437.5600 0.9990 30-Sep-25 54,381.49 54,420.56 -39.07 2,799.65 5.15% Principal Fixed Income FEDERAL HOME LOAN BA 2.060% 9/27/29 CUSIP: 3130AH6Y4 Ticker: 0.19% 1,300,000.0000 0.9360 30-Sep-25 1,216,839.00 1,189,630.00 27,209.00 26,780.00 2.20% Principal Fixed Income FORD CR FLP MASTER 0.00001% 5/15/28 CUSIP: 34528QHV9 Ticker: 1.42% 9,000,000.0000 1.0047 30-Sep-25 9,042,120.00 9,033,398.44 8,721.56 0.90 0.00% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 16 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income FORD CREDIT AT 4.940% 6/15/28 CUSIP: 345282AD9 Ticker: 0.76% 4,802,000.0000 1.0100 30-Sep-25 4,849,779.90 4,809,503.13 40,276.77 237,218.80 4.89% Principal Fixed Income G N M A I I #080023 4.750% 12/20/26 CUSIP: 36225CAZ9 Ticker: 080023M 0.00% 1,192.4700 1.0065 30-Sep-25 1,200.16 1,212.17 -12.01 56.64 4.72% Principal Fixed Income G N M A I I #080088 5.625% 6/20/27 CUSIP: 36225CC20 Ticker: 080088M 0.00% 1,799.1200 0.9998 30-Sep-25 1,798.71 1,838.48 -39.77 101.20 5.63% Principal Fixed Income G N M A I I #080395 5.625% 4/20/30 CUSIP: 36225CNM4 Ticker: 080395M 0.00% 1,413.7900 1.0015 30-Sep-25 1,415.88 1,400.95 14.93 79.53 5.62% Principal Fixed Income G N M A I I #080408 5.625% 5/20/30 CUSIP: 36225CN28 Ticker: 080408M 0.00% 13,092.3700 1.0006 30-Sep-25 13,100.62 12,959.37 141.25 736.45 5.62% Principal Fixed Income G N M A I I #080965 4.625% 7/20/34 CUSIP: 36225DCB8 Ticker: 080965M 0.00% 12,013.5800 1.0140 30-Sep-25 12,181.29 12,006.07 175.22 555.63 4.56% Principal Fixed Income GE AEROSPACE 4.300% 7/29/30 CUSIP: 369604BZ5 Ticker: 0.41% 2,600,000.0000 1.0059 30-Sep-25 2,615,444.00 2,594,474.50 20,969.50 111,800.00 4.27% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 17 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income GMF FLOORPL OWNE 4.680% 11/15/28 CUSIP: 361886DK7 Ticker: 1.22% 7,710,000.0000 1.0077 30-Sep-25 7,769,135.70 7,712,108.20 57,027.50 360,828.00 4.64% Principal Fixed Income GOLDMAN SACHS BK 5.414% 5/21/27 CUSIP: 38151LAG5 Ticker: 1.19% 7,500,000.0000 1.0077 30-Sep-25 7,557,600.00 7,546,875.00 10,725.00 406,050.00 5.37% Principal Fixed Income HONDA AUTO 4.330% 3/15/29 CUSIP: 43816DAC9 Ticker: 0.31% 1,973,000.0000 1.0054 30-Sep-25 1,983,733.12 1,972,720.82 11,012.30 85,430.89 4.31% Principal Fixed Income HYUNDAI AUTO LEASE 4.620% 4/17/28 CUSIP: 448984AD6 Ticker: 0.79% 5,000,000.0000 1.0066 30-Sep-25 5,033,050.00 5,003,906.25 29,143.75 231,000.00 4.59% Principal Fixed Income HYUNDAI AUTO RECV TR 4.790% 10/15/29 CUSIP: 44935CAD3 Ticker: 0.67% 4,231,000.0000 1.0076 30-Sep-25 4,263,324.84 4,230,375.93 32,948.91 202,664.90 4.75% Principal Fixed Income INTER AMER BK M T N 3.900% 8/15/29 CUSIP: 45818WFV3 Ticker: 0.24% 1,500,000.0000 1.0093 30-Sep-25 1,513,920.00 1,497,877.50 16,042.50 58,500.00 3.86% Principal Fixed Income INTL BK MTN 4.750% 7/30/29 CUSIP: 45906M5K3 Ticker: 0.96% 6,050,000.0000 1.0039 30-Sep-25 6,073,413.50 6,084,115.95 -10,702.45 287,375.00 4.73% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 18 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income JOHN DEERE OWNER 5.090% 6/15/27 CUSIP: 47800BAC2 Ticker: JDO5027 0.20% 1,290,091.1400 1.0033 30-Sep-25 1,294,374.24 1,289,991.02 4,383.22 65,665.64 5.07% Principal Fixed Income JOHN DEERE OWNER TR 4.830% 9/17/29 CUSIP: 47800DAD6 Ticker: 0.48% 3,046,000.0000 1.0055 30-Sep-25 3,062,722.54 3,045,808.41 16,914.13 147,121.80 4.80% Principal Fixed Income JOHN DEERE OWNR TR 3.740% 2/16/27 CUSIP: 47800AAC4 Ticker: JDO6827 0.10% 662,655.1300 0.9986 30-Sep-25 661,753.92 662,591.85 -837.93 24,783.30 3.75% Principal Fixed Income JPMORGAN CHASE CO 3.509% 1/23/29 CUSIP: 46647PAM8 Ticker: 1.13% 7,250,000.0000 0.9868 30-Sep-25 7,154,517.50 6,868,505.00 286,012.50 254,402.50 3.56% Principal Fixed Income JPMORGAN CHASE CO 4.915% 1/24/29 CUSIP: 46647PEU6 Ticker: 1.02% 6,375,000.0000 1.0180 30-Sep-25 6,489,941.25 6,375,604.20 114,337.05 313,331.25 4.83% Principal Fixed Income LEHMAN BRTH MTN ES 0.00001% 1/24/13 CUSIP: 525ESCIB7 Ticker: 0.00% 600,000.0000 0.0009 29-Sep-25 540.00 314,363.98 -313,823.98 0.06 0.01% Principal Fixed Income MERCEDES BENZ 4.780% 12/17/29 CUSIP: 58773DAD6 Ticker: 0.76% 4,760,000.0000 1.0133 30-Sep-25 4,823,403.20 4,758,987.55 64,415.65 227,528.00 4.72% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 19 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income MET TOWER MTN 1.250% 9/14/26 CUSIP: 58989V2D5 Ticker: 0.57% 3,745,000.0000 0.9750 30-Sep-25 3,651,300.10 3,741,554.60 -90,254.50 46,812.50 1.28% Principal Fixed Income MORGAN STANLEY MTN 3.772% 1/24/29 CUSIP: 61744YAP3 Ticker: 0.51% 3,250,000.0000 0.9913 30-Sep-25 3,221,822.50 3,170,440.00 51,382.50 122,590.00 3.80% Principal Fixed Income MORGAN STANLEY MTN 5.652% 4/13/28 CUSIP: 61747YFP5 Ticker: MSM5428 1.57% 9,750,000.0000 1.0224 30-Sep-25 9,968,302.50 9,753,225.60 215,076.90 551,070.00 5.53% Principal Fixed Income OREGON ST TAXABLE GO 4.368% 5/01/28 CUSIP: 68609UNF8 Ticker: 0.16% 1,000,000.0000 1.0151 30-Sep-25 1,015,080.00 1,000,000.00 15,080.00 43,680.00 4.30% Principal Fixed Income OREGON ST TAXABLE GO 4.494% 5/01/29 CUSIP: 68609UNG6 Ticker: 0.16% 1,000,000.0000 1.0226 30-Sep-25 1,022,550.00 1,000,000.00 22,550.00 44,940.00 4.39% Principal Fixed Income PENFED AUTO REC 4.650% 7/15/30 CUSIP: 706916AC7 Ticker: 0.35% 2,204,000.0000 0.9986 30-Sep-25 2,200,980.52 2,203,900.16 -2,919.64 102,486.00 4.66% Principal Fixed Income PNC FINL SVCS GROUP 5.582% 6/12/29 CUSIP: 693475BR5 Ticker: 1.31% 8,000,000.0000 1.0362 30-Sep-25 8,289,840.00 8,198,160.00 91,680.00 446,560.00 5.39% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 20 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income REALTY INCOME CORP 4.700% 12/15/28 CUSIP: 756109BS2 Ticker: 0.88% 5,500,000.0000 1.0180 30-Sep-25 5,598,890.00 5,462,290.00 136,600.00 258,500.00 4.62% Principal Fixed Income RESOLUTION FDG STRIP 10/15/28 CUSIP: 76116EHL7 Ticker: 1.06% 7,500,000.0000 0.8950 30-Sep-25 6,712,800.00 6,377,175.00 335,625.00 0.75 0.00% Principal Fixed Income RFCP STRIPS 1/15/29 CUSIP: 76116EGP9 Ticker: 1.40% 10,000,000.0000 0.8862 30-Sep-25 8,861,500.00 8,052,300.00 809,200.00 1.00 0.00% Principal Fixed Income RFCP STRIPS 1/15/30 CUSIP: 76116EGR5 Ticker: RS111530 0.67% 5,000,000.0000 0.8457 30-Sep-25 4,228,700.00 4,178,700.00 50,000.00 - - Principal Fixed Income TOYOTA LEASE OWNER 4.750% 2/22/28 CUSIP: 89239NAD7 Ticker: 0.70% 4,378,000.0000 1.0109 30-Sep-25 4,425,632.64 4,377,942.65 47,689.99 207,955.00 4.70% Principal Fixed Income TOYOTA MOTOR MTN 3.050% 3/22/27 CUSIP: 89236TJZ9 Ticker: 0.31% 2,000,000.0000 0.9876 30-Sep-25 1,975,280.00 1,945,900.00 29,380.00 61,000.00 3.09% Principal Fixed Income TOYOTA MTR CR MTN 1.125% 6/18/26 CUSIP: 89236TJK2 Ticker: 1.12% 7,285,000.0000 0.9799 30-Sep-25 7,138,352.95 7,281,794.60 -143,441.65 81,956.25 1.15% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 21 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income U S TREAS BD STRIP 8/15/29 CUSIP: 912833XP0 Ticker: 3.17% 23,250,000.0000 0.8654 30-Sep-25 20,120,782.50 19,002,612.50 1,118,170.00 2.33 0.00% Principal Fixed Income U S TREASURY BD STRIP 11/15/29 CUSIP: 912833XT2 Ticker: 3.10% 23,000,000.0000 0.8562 30-Sep-25 19,691,910.00 18,415,180.00 1,276,730.00 2.30 0.00% Principal Fixed Income U S TREASURY NT 0.625% 8/15/30 CUSIP: 91282CAE1 Ticker: 1.83% 13,500,000.0000 0.8622 30-Sep-25 11,639,025.00 11,635,312.50 3,712.50 84,375.00 0.72% Principal Fixed Income U S TREASURY NT 0.750% 1/31/28 CUSIP: 91282CBJ9 Ticker: 2.98% 20,200,000.0000 0.9364 30-Sep-25 18,915,482.00 18,622,664.06 292,817.94 151,500.00 0.80% Principal Fixed Income U S TREASURY NT 1.000% 7/31/28 CUSIP: 91282CCR0 Ticker: 1.68% 11,500,000.0000 0.9297 30-Sep-25 10,691,895.00 10,292,949.22 398,945.78 115,000.00 1.08% Principal Fixed Income U S TREASURY NT 1.500% 2/15/30 CUSIP: 912828Z94 Ticker: 2.15% 15,000,000.0000 0.9119 30-Sep-25 13,678,650.00 13,491,764.51 186,885.49 225,000.00 1.64% Principal Fixed Income U S TREASURY NT 1.750% 1/31/29 CUSIP: 91282CDW8 Ticker: 1.24% 8,350,000.0000 0.9408 30-Sep-25 7,855,847.00 7,326,798.83 529,048.17 146,125.00 1.86% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 22 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income U S TREASURY NT 2.375% 3/31/29 CUSIP: 91282CEE7 Ticker: 2.72% 18,000,000.0000 0.9582 30-Sep-25 17,247,600.00 16,953,944.21 293,655.79 427,500.00 2.48% Principal Fixed Income U S TREASURY NT 2.750% 4/30/27 CUSIP: 91282CEN7 Ticker: UST2727A 1.44% 9,250,000.0000 0.9862 30-Sep-25 9,122,442.50 8,831,845.70 290,596.80 254,375.00 2.79% Principal Fixed Income U S TREASURY NT 3.125% 8/31/29 CUSIP: 91282CFJ5 Ticker: 4.24% 27,475,000.0000 0.9795 30-Sep-25 26,912,586.75 26,520,807.78 391,778.97 858,593.75 3.19% Principal Fixed Income U S TREASURY NT 3.500% 1/31/30 CUSIP: 91282CGJ4 Ticker: 0.85% 5,425,000.0000 0.9915 30-Sep-25 5,378,996.00 5,375,006.46 3,989.54 189,875.00 3.53% Principal Fixed Income U S TREASURY NT 3.500% 4/30/30 CUSIP: 91282CGZ8 Ticker: 1.50% 9,600,000.0000 0.9904 30-Sep-25 9,507,744.00 9,382,875.00 124,869.00 336,000.00 3.53% Principal Fixed Income U S TREASURY NT 3.625% 3/31/30 CUSIP: 91282CGS4 Ticker: UST0030 2.67% 17,000,000.0000 0.9959 30-Sep-25 16,930,300.00 16,812,252.27 118,047.73 616,250.00 3.64% Principal Fixed Income U S TREASURY NT 3.750% 12/31/28 CUSIP: 91282CJR3 Ticker: 2.84% 18,000,000.0000 1.0032 30-Sep-25 18,056,880.00 17,688,691.40 368,188.60 675,000.00 3.74% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 23 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income U S TREASURY NT 4.000% 7/31/30 CUSIP: 91282CHR5 Ticker: 1.33% 8,325,000.0000 1.0113 30-Sep-25 8,418,989.25 8,435,891.60 -16,902.35 333,000.00 3.96% Principal Fixed Income U S TREASURY NT 4.125% 8/31/30 CUSIP: 91282CHW4 Ticker: 0.48% 3,000,000.0000 1.0168 30-Sep-25 3,050,280.00 3,072,666.30 -22,386.30 123,750.00 4.06% Principal Fixed Income U S TREASURY NT 4.250% 2/28/29 CUSIP: 91282CKD2 Ticker: 0.53% 3,300,000.0000 1.0190 30-Sep-25 3,362,766.00 3,329,272.77 33,493.23 140,250.00 4.17% Principal Fixed Income U S TREASURY NT 4.375% 11/30/28 CUSIP: 91282CJN2 Ticker: 2.81% 17,500,000.0000 1.0216 30-Sep-25 17,878,000.00 17,832,089.84 45,910.16 765,625.00 4.28% Principal Fixed Income U S TREASURY NT 4.625% 9/30/28 CUSIP: 91282CJA0 Ticker: 1.06% 6,575,000.0000 1.0281 30-Sep-25 6,759,954.75 6,778,414.06 -18,459.31 304,093.75 4.50% Principal Fixed Income UNITEDHEALTH 1.150% 5/15/26 CUSIP: 91324PEC2 Ticker: 0.62% 4,000,000.0000 0.9820 30-Sep-25 3,928,040.00 3,904,703.05 23,336.95 46,000.00 1.17% Principal Fixed Income UNITEDHEALTH 5.250% 2/15/28 CUSIP: 91324PEP3 Ticker: 0.81% 5,000,000.0000 1.0268 30-Sep-25 5,134,050.00 5,114,225.00 19,825.00 262,500.00 5.11% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 24 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Fixed Income VERIZON MASTER TR 4.490% 1/22/29 CUSIP: 92348KBG7 Ticker: 0.70% 4,455,000.0000 1.0011 30-Sep-25 4,459,811.40 4,448,387.11 11,424.29 200,029.50 4.49% Principal Fixed Income VERIZON MASTER TRUST 4.510% 3/20/30 CUSIP: 92348KDY6 Ticker: 1.23% 7,731,000.0000 1.0083 30-Sep-25 7,795,244.61 7,730,667.57 64,577.04 348,668.10 4.47% Principal Fixed Income VOLVO FINANCIAL 4.460% 5/15/29 CUSIP: 92887TAC5 Ticker: 0.27% 1,700,000.0000 1.0072 30-Sep-25 1,712,223.00 1,699,796.00 12,427.00 75,820.01 4.43% Principal Fixed Income WELLTOWER INC 4.125% 3/15/29 CUSIP: 95040QAH7 Ticker: 0.60% 3,845,000.0000 0.9986 30-Sep-25 3,839,732.35 3,808,280.25 31,452.10 158,606.25 4.13% Principal Fixed Income WELLTOWER INC 4.250% 4/15/28 CUSIP: 95040QAD6 Ticker: 0.80% 5,061,000.0000 1.0061 30-Sep-25 5,091,872.10 5,068,692.72 23,179.38 215,092.50 4.22% Principal Real Estate And Other LEHMAN BRTH HLD ESC CUSIP: 525ESC0Y6 Ticker: 0.00% 2,000,000.0000 - 14-Oct-23 - 1,012,523.50 -1,012,523.50 - - Principal USD-U.S._DOLLAR INVESTMENT - DETAIL Run Date : 10/30/2025 Page 25 of 26 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6745046601 OCSD LONG-TERM PORTFOLIO Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Cash & Cash Equivalents 0.24%1,540,539.17 1,540,539.17 - 61,585.56 4.00% Fixed Income 99.76%633,576,206.60 622,996,897.90 10,579,308.70 20,790,329.81 3.28% Real Estate And Other 0.00%- 1,012,523.50 -1,012,523.50 - - Total USD-U.S._DOLLAR 100.00% 635,116,745.77 625,549,960.57 9,566,785.20 20,851,915.38 3.28% Total (U.S. DOLLAR) 100.00% 635,116,746.22 625,549,960.57 9,566,785.66 20,851,915.30 3.28% Grand Total (U.S. DOLLAR) 100.00% 635,116,746.22 625,549,960.57 9,566,785.66 20,851,915.30 3.28% INVESTMENT - DETAIL Run Date : 10/30/2025 Page 26 of 26 [!libank. ĂůůĂŶ/ŶǀĞƐƚŵĞŶƚDĞĂƐƵƌĞŵĞŶƚ^ĞƌǀŝĐĞYƵĂƌƚĞƌůǇZĞǀŝĞǁZĞƉŽƌƚ September 30, 2025 Orange County Sanitation District Investment Measurement Service Quarterly Review Important Disclosures regarding the use of this document are included at the end of this document. These disclosures are an integral part of this document and should be considered by the user. Callan Orange County Sanitation District Executive Summary for Period Ending September 30, 2025 Asset Allocation Performance * Current Quarter Target = 80.0% ML 1-5 Govt/Corp and 20.0% FTSE 3mo T-Bills. Recent Developments Effective March 1, 2024 Insight Investment Management became the investment manager for the District’s Long-Term Operating Fund and the Liquid Operating Monies, replacing Chandler Asset Management. During the quarter, $15 million was distributed from the Long-Term Operating Fund and $150 million was distributed from the Liquid Operating Monies. Organizational Issues N/A Fixed Income Market Snapshot — Fixed income markets posted broad-based gains in 3Q25. The U.S. Treasury yield curve steepened modestly as the front end fell more sharply in anticipation of Fed cuts, while the long end shifted marginally lower but remained elevated. The Bloomberg US Aggregate Bond Index advanced 2.0% (+6.1% YTD) as yields declined. September 30, 2025 June 30, 2025 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Insight Long Term 638,402,999 90.71%(15,000,000)7,976,750 645,426,249 76.93% Insight Liquid 65,363,001 9.29%(130,000,000)1,826,077 193,536,924 23.07% Total Fund 703766 000 100.00%145000000 9 802827 838 963173 100.00% Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^ 1.27% 4.44% 4.97% 1.64% 2.63% Blmbg Govt/Cred 1-5 Year Idx 1.27% 4.12% 4.92% 1.39% 2.53% ML 1-5 Govt/Corp 1.29% 4.17% 4.98% 1.44% 2.56% Liquid Operating Monies^ 1.24% 4.63% 4.94% 3.05% 2.72% Citigroup 3-Month Treasury Bill 1.11% 4.61% 4.98% 3.10% 2.70% Total Fund 1.28% 4.27% 4.97% 1.89% 2.64% Tar et* 1.26% 4.26% 4.98% 1.78% 2.59% 2 — Investment grade corporate bonds outperformed securitized (MBS, CMBS, ABS) on a like-duration basis as corporate option-adjusted spreads continued tightening and reached levels last seen in the pre-GFC period. Within leveraged finance, spreads also continued to grind tighter as the Bloomberg US High Yield Index rose 2.5% and the Morningstar LSTA Leveraged Loan Index advanced 1.8%, supported by strong CLO demand. The Bloomberg TIPS Index gained 2.1% (+6.9% YTD) as the 10-year breakeven increased and implied 10-year real yield declined. Municipals generated solid returns (Bloomberg Muni: +3.0%), aided by favorable technicals and strong demand. Investment Manager Performance — The Long-Term Operating Fund returned 1.3% in the third quarter, narrowly trailing the ICE Corporate/Government 1–5 Year Index by 2 bps, and in line with the Bloomberg Government/Credit 1–5 Year Index. The Fund ranked 86th percentile in the Callan Short Term Fixed Income peer group. Over the last year, the portfolio returned 4.4%, outperforming the ICE benchmark by 27 bps and the Bloomberg benchmark by 32 bps. The Fund ranked 85th percentile. — The Liquid Operating Money rose 1.2% (net) over the quarter, outperforming the Citigroup 3-Month Treasury Bill Index return by 13 bps, and ranking 29th percentile in the Callan Money Market Funds peer group. Over the last year, the portfolio returned 4.6% (net), marginally ahead of the benchmark by 2 bps, and ranking in the 35th percentile. Please reach out to me should you have any questions or need any additional information. Cordially, Alexander Ford Senior Vice President, Investment Consulting Callan LLC Callan Table of Contents September 30, 2025 Capital Market Review 1 Active Management Overview Market Overview 7 Domestic Fixed Income 8 Asset Allocation Investment Manager Asset Allocation 10 Investment Manager Returns 11 Asset Class Risk and Return 15 Manager Analysis Long Term Operating Fund 17 Liquid Operating Money 21 Definitions 23 Disclosures 2828 Callan Ca p i t a l M a r k e t R e v i e w Capital Market Review 5XVVHOO 5XVVHOO 5XVVHOO*URZWK 5XVVHOO9DOXH 6 3 5XVVHOO0LGFDS 5XVVHOO 5XVVHOO 86(TXLW\4XDUWHUO\5HWXUQV 5XVVHOO 5XVVHOO 5XVVHOO*URZWK 5XVVHOO9DOXH 6 3 5XVVHOO0LGFDS 5XVVHOO 5XVVHOO 86(TXLW\2QH<HDU5HWXUQV 6RXUFH6 3'RZ-RQHV,QGLFHV 6 36HFWRU5HWXUQV4XDUWHU(QGHG /DVW4XDUWHU 6HUYLFHV &RPPXQLFDWLRQ 'LVFUHWLRQDU\ &RQVXPHU 6WDSOHV &RQVXPHU (QHUJ\ )LQDQFLDOV +HDOWK&DUH ,QGXVWULDOV 7HFKQRORJ\ ,QIRUPDWLRQ 0DWHULDOV 5HDO(VWDWH 8WLOLWLHV 86(48,7,(6 $QRWKHUVWURQJTXDUWHUIRU86VWRFNV ±7KH6 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&DSLWDO0DUNHWV2YHUYLHZFRQWLQXHG4 6RXUFHV%ORRPEHUJ-30RUJDQ Callan ■ I I I I ■ I ■ I • -■ - Ac t i v e Ma n a g e m e n t Active Management Ov e r v i e w Overview Market Overview Active Management vs Index Returns Market Overview The charts below illustrate the range of returns across managers in Callan’s Separate Account database over the most recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter. The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the Large Cap Equity manager database. Range of Separate Account Manager Returns by Asset Class One Quarter Ended September 30, 2025 Re t u r n s (4%) (2%) 0% 2% 4% 6% 8% 10% 12% 14% 16% Large Cap Small Cap Non-US Domestic Non-US Real Equity Equity Equity Fixed Income Fixed Income Estate vs vs vs vs vs vs S&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index (22) (14) (60) (90) (97) (38) 10th Percentile 9.03 12.72 7.96 2.38 (0.11)1.79 25th Percentile 7.98 10.70 6.74 2.26 (0.33)1.45 Median 6.83 7.84 5.18 2.19 (0.33)1.01 75th Percentile 5.32 5.82 3.05 2.08 (0.37)0.66 90th Percentile 3.49 4.21 1.11 2.02 (0.48)0.10 Index 8.12 12.39 4.77 2.03 (0.80)1.19 Range of Separate Account Manager Returns by Asset Class One Year Ended September 30, 2025 Re t u r n s (10%) (5%) 0% 5% 10% 15% 20% 25% 30% 35% Large Cap Small Cap Non-US Domestic Non-US Real Equity Equity Equity Fixed Income Fixed Income Estate vs vs vs vs vs vs S&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index (40) (26) (65) (93)(70) (37) 10th Percentile 24.49 15.74 26.86 3.73 7.76 7.45 25th Percentile 21.25 10.90 21.14 3.48 5.31 5.25 Median 14.99 6.91 16.43 3.30 2.63 4.05 75th Percentile 10.92 2.47 11.50 3.15 1.08 1.67 90th Percentile 7.74 (1.40)6.54 2.95 0.64 (3.07) Index 17.60 10.76 14.99 2.88 1.26 4.65 7Orange County Sanitation DistrictCallan Domestic Fixed Income Active Management Overview Fixed income markets posted broad-based gains in 3Q25. The U.S. Treasury yield curve steepened modestly as the front end fell more sharply in anticipation of Fed cuts, while the long end shifted marginally lower but remained elevated. The Bloomberg US Aggregate Bond Index advanced 2.0% (+6.1% YTD) as yields declined. Investment grade corporate bonds outperformed securitized (MBS, CMBS, ABS) on a like-duration basis as corporate option-adjusted spreads continued tightening and reached levels last seen in the pre-GFC period. Within leveraged finance, spreads also continued to grind tighter as the Bloomberg US High Yield Index rose 2.5% and the Morningstar LSTA Leveraged Loan Index advanced 1.8%, supported by strong CLO demand. The Bloomberg TIPS Index gained 2.1% (+6.9% YTD) as the 10-year breakeven increased and implied 10-year real yield declined. Separate Account Style Group Median Returns for Quarter Ended September 30, 2025 0% 1% 2% 3% 4% 5% 1.37 Defensive 1.70 Intermed 2.19 Core Bond 2.30 Core Plus 3.23 Extended Maturity 1.75 Bank Loans 2.45 High Yield Re t u r n s Blmbg Aggregate:2.03% Blmbg High Yield:2.54% Blmbg Long Gov/Cred: 3.16% Separate Account Style Group Median Returns for One Year Ended September 30, 2025 (4%) (2%) 0% 2% 4% 6% 8% 10% 12% 4.75 Defensive 4.34 Intermed 3.30 Core Bond 3.88 Core Plus (0.85 ) Extended Maturity 7.26 Bank Loans 7.50 High Yield Re t u r n s Blmbg Aggregate:2.88% Blmbg High Yield:7.41% Blmbg Long Gov/Cred:(1.28%) 8Orange County Sanitation DistrictCallan As s e t All o c a t i o n Asset Allocation Investment Manager Asset Allocation The table below contrasts the distribution of assets across the Fund’s investment managers as of September 30, 2025, with the distribution as of June 30, 2025. The change in asset distribution is broken down into the dollar change due to Net New Investment and the dollar change due to Investment Return. Asset Distribution Across Investment Managers September 30, 2025 June 30, 2025 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Insight Long Term 638,402,999 90.71%(15,000,000)7,976,750 645,426,249 76.93% Insight Liquid 65,363,001 9.29%(130,000,000)1,826,077 193,536,924 23.07% Total Fund $703,766,000 100.00%$(145,000,000)$9,802,827 $838,963,173 100.00% *Insight replaced Chandler during the 1st quarter of 2024. Assets were transferred in-kind as of 03/01/2024. 10Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods ended September 30, 2025. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. Returns for Periods Ended September 30, 2025 Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^1.27% 4.44% 4.97% 1.64% 2.63% Blmbg Govt/Cred 1-5 Year Idx 1.27% 4.12% 4.92% 1.39% 2.53% ML 1-5 Govt/Corp 1.29% 4.17% 4.98% 1.44% 2.56% Liquid Operating Monies^1.24% 4.63% 4.94% 3.05% 2.72% Citigroup 3-Month Treasury Bill 1.11% 4.61% 4.98% 3.10% 2.70% Total Fund 1.28% 4.27% 4.97% 1.89% 2.64% Target*1.26% 4.26% 4.98% 1.78% 2.59% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. 11Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods ended September 30, 2025. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. Returns for Periods Ended September 30, 2025 Last Last Last 10 15 30 Years Years Years Domestic Fixed Income Long Term Operating Fund^2.10%1.94%3.82% Blmbg Govt/Cred 1-5 Year Idx 1.99%1.86%3.66% ML 1-5 Govt/Corp 2.02%1.91%3.69% Liquid Operating Monies^2.17%1.50%2.62% Citigroup 3-Month Treasury Bill 2.12%1.43%2.38% Total Fund 2.08%1.86%3.63% Target*2.05%1.81%3.43% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. 12Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. 12/2024- 9/2025 2024 2023 2022 2021 Domestic Fixed Income Long Term Operating Fund^5.06% 3.89% 4.95%(4.75%) (0.79%) Blmbg Govt/Cred 1-5 Year Idx 4.87% 3.76% 4.89%(5.50%) (0.97%) ML 1-5 Govt/Corp 4.87% 3.91% 4.89%(5.54%) (0.87%) Liquid Operating Monies^3.32% 5.41% 5.16% 1.29% 0.15% Citigroup 3-Month Treasury Bill 3.34% 5.45% 5.26% 1.50% 0.05% Total Fund 4.77% 4.09% 5.02%(3.70%) (0.61%) Target*4.56% 4.22% 4.97%(4.16%) (0.68%) * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. 13Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. 2020 2019 2018 2017 2016 Domestic Fixed Income Long Term Operating Fund^4.42% 4.70% 1.60% 1.18% 1.58% Blmbg Govt/Cred 1-5 Year Idx 4.71% 5.01% 1.38% 1.27% 1.56% ML 1-5 Govt/Corp 4.65% 5.08% 1.40% 1.28% 1.62% Liquid Operating Monies^0.84% 2.39% 1.90% 0.91% 0.47% Citigroup 3-Month Treasury Bill 0.58% 2.25% 1.86% 0.84% 0.27% Total Fund 3.73% 4.26% 1.72% 1.02% 1.15% Target*3.82% 4.51% 1.49% 1.19% 1.35% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. 14Orange County Sanitation DistrictCallan Asset Class Risk and Return The charts below show the seven year annualized risk and return for each asset class component of the Total Fund. The first graph contrasts these values with those of the appropriate index for each asset class. The second chart contrasts them with the risk and return of the median portfolio in each of the appropriate CAI comparative databases. In each case, the crosshairs on the chart represent the return and risk of the Total Fund. Seven Year Annualized Risk vs Return Asset Classes vs Benchmark Indices 0.5%1.0%1.5%2.0%2.5%3.0%3.5% 2.52% 2.54% 2.56% 2.58% 2.60% 2.62% 2.64% 2.66% 2.68% 2.70% 2.72% Total Fund Blmbg Gov/Cred 1-5 Yr ICE Corp/Gov 1-5 Yr FTSE 3 Mo T-Bill Total Fund Target Standard Deviation Re t u r n s Seven Year Annualized Risk vs Return Asset Classes vs Asset Class Median 0.8%1.0%1.2%1.4%1.6%1.8%2.0%2.2%2.4%2.6%2.8% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% Total Fund Callan Money Market Funds Callan Short Fixed Inc Standard Deviation Re t u r n s 15Orange County Sanitation DistrictCallan Ma n a g e r An a l y s i s Manager Analysis Long Term Operating Fund Period Ended September 30, 2025 Investment Philosophy Insight 1-5 Year strategy seeks to capitalize on market inefficiencies, use multiple sources of alpha and make diverse bets in an effort to achieve superior total return versus the Barclays Capital Aggregate Index over a full market cycle on an absolute and risk-adjusted basis. We employ a disciplined team structure that relies on fundamental proprietary analysis and research to identify individual securities with the greatest capital appreciation potential. We customize every portfolio to meet each client’s return objectives, liquidity needs, and risk tolerance. We emphasize diversification across sectors, industries, issuers and credit quality. Under most circumstances, we limit our duration exposure to within a range of +/- 15% versus the benchmark. We add value for our clients’ portfolios by using a disciplined team structure that relies on fundamental, proprietary research analysis to identify individual securities with the greatest capital appreciation potential. Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. Quarterly Summary and Highlights Long Term Operating Fund’s portfolio posted a 1.27% return for the quarter placing it in the 86 percentile of the Callan Short Term Fixed Income group for the quarter and in the 85 percentile for the last year. Long Term Operating Fund’s portfolio underperformed the ICE Corp/Gov 1-5 Yr by 0.02% for the quarter and outperformed the ICE Corp/Gov 1-5 Yr for the year by 0.27%. Quarterly Asset Growth Beginning Market Value $645,426,249 Net New Investment $-15,000,000 Investment Gains/(Losses) $7,976,750 Ending Market Value $638,402,999 Performance vs Callan Short Term Fixed Income (Gross) 0% 1% 2% 3% 4% 5% 6% 7% Last Quarter Last Last 3 Years Last 5 Years Last 7 Years Last 10 Years Last 10-3/4 Last 30 Years Year Years A(86)B(87)(78) A(85)B(94)(93) A(87) B(90)(87) A(97)B(99)(99) A(90)B(93)(92)A(89) B(96)(96)A(89)B(94)(89) A(35)B(59)(53) 10th Percentile 1.57 5.42 6.26 3.13 3.48 3.05 2.93 4.21 25th Percentile 1.47 5.03 5.76 2.63 3.14 2.73 2.67 3.90 Median 1.37 4.75 5.43 2.39 2.96 2.45 2.38 3.72 75th Percentile 1.30 4.59 5.15 2.08 2.80 2.29 2.24 3.52 90th Percentile 1.25 4.28 4.90 1.75 2.63 2.06 2.02 3.25 Long Term Operating Fund A 1.27 4.44 4.97 1.64 2.63 2.10 2.07 3.82 Blmbg Govt/Cred 1-5 Year Idx B 1.27 4.12 4.92 1.39 2.53 1.99 1.99 3.66 ICE Corp/Gov 1-5 Yr 1.29 4.17 4.98 1.44 2.56 2.02 2.03 3.69 Relative Return vs ICE Corp/Gov 1-5 Yr Re l a t i v e Re t u r n s (0.8%) (0.6%) (0.4%) (0.2%) 0.0% 0.2% 0.4% 0.6% 0.8% 18 2019 2020 2021 2022 2023 2024 2025 Long Term Operating Fund Callan Short Term Fixed Income (Gross) Annualized Seven Year Risk vs Return 1 2 3 4 5 6 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Long Term Operating Fund ICE Corp/Gov 1-5 Yr Blmbg Govt/Cred 1-5 Year Idx Standard Deviation Re t u r n s 17Orange County Sanitation District • • Callan • • ... Long Term Operating Fund Return Analysis Summary Return Analysis The graphs below analyze the manager’s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager’s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager’s ranking relative to their style using various risk-adjusted return measures. Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. Performance vs Callan Short Term Fixed Income (Gross) (8%) (6%) (4%) (2%) 0% 2% 4% 6% 8% 12/24- 9/25 2024 2023 2022 2021 2020 2019 2018 2017 2016 A(17)B(29)29 A(97)B(98)97 A(81) B(86)86 A(81) B(95)95 A(89)B(99)94 B(23)A(33)24 B(22) A(35)20 A(67)B(87)86 B(59)A(65)58 A(48) B(49)46 10th Percentile 5.24 6.20 6.38 (1.86)0.75 5.12 5.48 2.02 2.30 2.81 25th Percentile 4.94 5.40 5.79 (2.87)0.12 4.53 4.96 1.83 1.76 2.19 Median 4.63 5.04 5.39 (3.33) (0.22)3.98 4.52 1.70 1.35 1.55 75th Percentile 4.50 4.69 5.05 (4.49) (0.45)3.55 4.06 1.54 0.97 1.16 90th Percentile 4.03 4.27 4.82 (4.93) (0.82)2.41 3.56 1.33 0.66 1.04 Long Term Operating Fund A 5.06 3.89 4.95 (4.75) (0.79)4.42 4.70 1.60 1.18 1.58 Blmbg Govt/Cred 1-5 Year Idx B 4.87 3.76 4.89 (5.50) (0.97)4.71 5.01 1.38 1.27 1.56 ICE Corp/Gov 1-5 Yr 4.87 3.91 4.89 (5.54) (0.87)4.65 5.08 1.40 1.28 1.62 Cumulative and Quarterly Relative Returns vs ICE Corp/Gov 1-5 Yr Qu a r t e r l y Re l a t i v e Re t u r n s Cu m u l a t i v e Re l a t i v e Re t u r n s (0.6%) (0.4%) (0.2%) 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% (6%) (4%) (2%) 0% 2% 4% 6% 8% 10% 15 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Long Term Operating Fund Blmbg Govt/Cred 1-5 Year Idx Callan Short Fixed Inc Risk Adjusted Return Measures vs ICE Corp/Gov 1-5 Yr Rankings Against Callan Short Term Fixed Income (Gross) Seven Years Ended September 30, 2025 (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Alpha Sharpe Excess Return Ratio Ratio A(90)B(92)A(90)B(92) A(86) B(98) 10th Percentile 0.91 0.30 0.57 25th Percentile 0.57 0.21 0.44 Median 0.37 0.13 0.30 75th Percentile 0.21 0.07 0.20 90th Percentile 0.04 0.00 0.07 Long Term Operating Fund A 0.06 0.00 0.15 Blmbg Govt/Cred 1-5 Year Idx B (0.03) (0.03) (0.23) 18Orange County Sanitation DistrictCallan • • ... I ■ ■ - - • • -.. ■ I ~ I ~ • Long Term Operating Fund Bond Characteristics Analysis Summary Portfolio Characteristics This graph compares the manager’s portfolio characteristics with the range of characteristics for the portfolios which make up the manager’s style group. This analysis illustrates whether the manager’s current holdings are consistent with other managers employing the same style. Fixed Income Portfolio Characteristics Rankings Against Callan Short Term Fixed Income as of September 30, 2025 (1) 0 1 2 3 4 5 6 Average Effective Coupon OA Duration Life Yield Rate Convexity (9)(15)(23)(30) (94) (96)(95) (33)(5) 10th Percentile 2.65 3.17 4.74 4.87 0.07 25th Percentile 2.09 2.85 4.44 4.56 0.05 Median 1.92 2.32 4.16 4.28 0.02 75th Percentile 1.84 2.03 4.04 4.05 (0.10) 90th Percentile 1.69 1.80 3.90 3.69 (0.23) Long Term Operating Fund 2.66 2.86 -3.37 0.04 ICE Corp/Gov 1-5 Yr 2.59 2.82 3.85 3.46 0.08 Sector Allocation and Quality Ratings The first graph compares the manager’s sector allocation with the average allocation across all the members of the manager’s style. The second graph compares the manager’s weighted average quality rating with the range of quality ratings for the style. Sector Allocation September 30, 2025 0%10%20%30%40%50%60%70%80% US Trsy 38.8 29.8 65.3 Corp (incl 144A) 23.6 50 % Mg r MV 50 % Mg r MV 44.5 27.3 ABS 14.5 17.9 Gov Related 12.2 7.4 CMBS 9.1 4.8 Other 1.2 Tax-Exempt US Muni 0.3 CMOs 0.2 0.3 RMBS 1.7 Cash 0.9 Long Term Operating Fund Callan Short Term Fixed Income ICE Corp/Gov 1-5 Yr Quality Ratings vs Callan Short Term Fixed Income A- A A+ AA- AA AA+ AAA Trsy Weighted Average Quality Rating (48)(48) 10th Percentile AA 25th Percentile AA Median AA- 75th Percentile A 90th Percentile A Long Term Operating Fund AA ICE Corp/Gov 1-5 Yr AA 19Orange County Sanitation District • ■ • ... Callan Long Term Operating Fund Portfolio Characteristics Summary As of September 30, 2025 Portfolio Structure Comparison The charts below compare the structure of the portfolio to that of the index from the three perspectives that have the greatest influence on return. The first chart compares the two portfolios across sectors. The second chart compares the duration distribution. The last chart compares the distribution across quality ratings. Sector Allocation Long Term Operating Fund US Trsy 39% Cash 0% Corp (incl 144A) 24% RMBS 0% ABS 14% CMOs 0% Gov Related 12% Tax-Exempt US Muni 0% CMBS 9% Other 1% ML:Corp/Gov 1-5 Yr US Trsy 65% Gov Related 7% Corp (incl 144A) 27% Duration Distribution 0% 10% 20% 30% 40% 50% 60% 70% 80% <1 8.7 2.5 1-3 49.1 60.7 3-5 42.2 36.7 5-7 0.0 0.0 7-10 0.0 0.0 >10 0.0 0.0 Years Duration Pe r c e n t of Po r t f o l i o Weighted Average:Duration Long Term Operating Fund: ML:Corp/Gov 1-5 Yr: 2.66 2.59 Quality Distribution 0% 20% 40% 60% 80% 100% AAA 15.7 3.3 AA 61.2 70.4 A 23.1 13.6 BBB 0.0 12.7 BB 0.0 0.0 B 0.0 0.0 CCC 0.0 0.0 CC 0.0 0.0 C 0.0 0.0 N/R 0.1 0.0 Quality Rating Pe r c e n t of Po r t f o l i o Weighted Average:Quality Long Term Operating Fund: ML:Corp/Gov 1-5 Yr: AA AA 20Orange County Sanitation DistrictCallan ■ ■ ■ ■ Liquid Operating Money Period Ended September 30, 2025 Investment Philosophy Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. Quarterly Summary and Highlights Liquid Operating Money Net’s portfolio posted a 1.24% return for the quarter placing it in the 29 percentile of the Callan Money Market Funds group for the quarter and in the 35 percentile for the last year. Liquid Operating Money Net’s portfolio outperformed the Citigroup 3-Month Treasury Bill by 0.13% for the quarter and outperformed the Citigroup 3-Month Treasury Bill for the year by 0.03%. Quarterly Asset Growth Beginning Market Value $193,536,924 Net New Investment $-130,000,000 Investment Gains/(Losses) $1,826,077 Ending Market Value $65,363,001 Performance vs Callan Money Market Funds (Net) 0% 1% 2% 3% 4% 5% 6% 7% Last Quarter Last Last 3 Years Last 5 Years Last 7 Years Last 10 Years Last 10-3/4 Last 30 Years Year Years (29)(44) (35)(35) (37)(36) (22)(20) (28)(30) (25)(26)(25)(25) (9)(16) 10th Percentile 1.38 5.20 5.72 3.29 3.04 2.55 2.42 2.48 25th Percentile 1.26 4.84 5.30 3.03 2.78 2.22 1.98 2.27 Median 1.06 4.39 4.73 2.86 2.44 1.87 1.73 2.18 75th Percentile 1.00 4.15 4.49 2.75 2.32 1.76 1.64 2.09 90th Percentile 0.96 3.96 4.26 2.55 2.15 1.62 1.51 1.97 Liquid Operating Money Net 1.24 4.63 4.94 3.05 2.72 2.17 2.04 2.62 Citigroup 3-Month Treasury Bill 1.11 4.61 4.98 3.10 2.70 2.12 1.98 2.38 Relative Returns vs Citigroup 3-Month Treasury Bill Re l a t i v e Re t u r n s (0.20%) (0.10%) 0.00% 0.10% 0.20% 0.30% 0.40% 18 2019 2020 2021 2022 2023 2024 2025 Liquid Operating Money Net Callan Money Market Funds (Net) Annualized Seven Year Risk vs Return 0 1 2 3 4 5 6 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Citigroup 3-Month Treasury Bill Liquid Operating Money Net Standard Deviation Re t u r n s 21Orange County Sanitation District • • § g • ~ ~ ~ ~ 8 - - ~ ~ ~ ~ ~ ~ ~ a • Callan Liquid Operating Money Net Return Analysis Summary Return Analysis The graphs below analyze the manager’s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager’s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager’s ranking relative to their style using various risk-adjusted return measures. Assets were transferred in kind to Insight on 3/1/2024. Performance from 12/1/2014 to 3/1/2024 represents Chandler. Previous performance reflects PIMCO. Performance vs Callan Money Market Funds (Net) (2%) (1%) 0% 1% 2% 3% 4% 5% 6% 7% 8% 12/24- 9/25 2024 2023 2022 2021 2020 2019 2018 2017 2016 4342 2928 3630 4817 1122 2126 2327 812 2530 2032 10th Percentile 4.03 6.18 6.22 1.57 0.19 1.70 3.20 1.89 1.42 1.32 25th Percentile 3.71 5.58 5.49 1.43 0.03 0.62 2.32 1.72 0.91 0.39 Median 3.21 5.15 4.98 1.27 0.01 0.34 1.96 1.53 0.61 0.14 75th Percentile 3.01 4.92 4.75 0.38 0.01 0.27 1.76 1.31 0.42 0.05 90th Percentile 2.89 4.65 4.57 (0.95) (0.03)0.19 1.50 1.05 0.23 0.01 Liquid Operating Money Net 3.32 5.41 5.16 1.29 0.15 0.84 2.39 1.90 0.91 0.47 Citigroup 3-Month Treasury Bill 3.34 5.45 5.26 1.50 0.05 0.58 2.25 1.86 0.84 0.27 Cumulative and Quarterly Relative Returns vs Citigroup 3-Month Treasury Bill Qu a r t e r l y Re l a t i v e Re t u r n s Cu m u l a t i v e Re l a t i v e Re t u r n s (0.30%) (0.20%) (0.10%) 0.00% 0.10% 0.20% 0.30% 0.40% (3%) (2%) (1%) 0% 1% 2% 3% 4% 15 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Liquid Operating Money Net Callan Money Market Funds Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill Rankings Against Callan Money Market Funds (Net) Seven Years Ended September 30, 2025 (5) (4) (3) (2) (1) 0 1 Alpha Sharpe Excess Return Ratio Ratio (2)(22)(17) 10th Percentile (0.08)0.22 0.25 25th Percentile (0.18)0.05 0.02 Median (0.30) (0.17) (2.67) 75th Percentile (0.45) (0.31) (3.39) 90th Percentile (0.78) (0.48) (3.65) Liquid Operating Money Net 0.11 0.09 0.14 22Orange County Sanitation District • I ■ ■ • Callan De f i n i t i o n s Definitions Risk/Reward Statistics The risk statistics used in this report examine performance characteristics of a manager or a portfolio relative to a benchmark (market indicator) which assumes to represent overall movements in the asset class being considered. The main unit of analysis is the excess return, which is the portfolio return minus the return on a risk free asset (3 month T-Bill). Alpha measures a portfolio’s return in excess of the market return adjusted for risk. It is a measure of the manager’s contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk which was taken for that level of market exposure. Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio’s beta measures the expected change in return per 1% change in the return on the market. If a beta of a portfolio is 1.5, a 1 percent increase in the return on the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would also be true. Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency and magnitude of underperformance affect the amount of downside risk. Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is calculated by dividing the manager’s annualized cumulative excess return relative to the index by the standard deviation of the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager’s active risk/reward tradeoff for diverging from the index when the index is mandated to be the "riskless" market position. Information Ratio measures the manager’s market risk-adjusted excess return per unit of residual risk relative to a benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information ratios will add value relative to the benchmark more reliably and consistently. R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of .75 indicates that 75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio’s returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no relationship exists between the portfolio’s return and the market. Relative Standard Deviation is a simple measure of a manager’s risk (volatility) relative to a benchmark. It is calculated by dividing the manager’s standard deviation of returns by the benchmark’s standard deviation of returns. A relative standard deviation of 1.20, for example, means the manager has exhibited 20% more risk than the benchmark over that time period. A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade fixed-income products where actual historical durations are not available. By using this relative risk measure over rolling time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark. Residual Portfolio Risk is the unsystematic risk of a fund, the portion of the total risk unique to the fund (manager) itself and not related to the overall market. This reflects the "bets" which the manager places in that particular asset market. These bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that portfolio. 24Callan Risk/Reward Statistics Rising Declining Periods refer to the sub-asset class cycles vis-a-vis the broader asset class. This is determined by evaluating the cumulative relative sub-asset class index performance to that of the broader asset class index. For example, to determine the Growth Style cycle, the S&P 500 Growth Index (sub-asset class) performance is compared to that of the S&P 500 Index (broader asset class). Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the "risk-free" return (usually 3 Month Treasury Bill) from the portfolio return and dividing the resulting "excess return" by the portfolio’s risk level (standard deviation). The result is a measure of return gained per unit of risk taken. Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation, however, lies in these two areas: (1) the statistical significance of the denominator, and (2) its reliance on the persistence of skewness in return distributions. Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher the standard deviation of returns, and the higher the portfolio risk. If returns are normally distributed (ie. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within plus or minus one standard deviation from the sample mean. Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two measures of risk: market (non-diversifiable or systematic) risk and residual (diversifiable or unsystematic) risk. The purpose of portfolio diversification is to reduce the residual risk of the portfolio. Tracking Error is a statistical measure of a portfolio’s risk relative to an index. It reflects the standard deviation of a portfolio’s individual quarterly or monthly returns from the index’s returns. Typically, the lower the Tracking Error, the more "index-like" the portfolio. Treynor Ratio represents the portfolio’s average excess return over a specified period divided by the beta relative to its benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk assumed. Note: Alpha, Total Risk, and Residual Risk are annualized. 25Callan Fixed Income Portfolio Characteristics All Portfolio Characteristics are derived by first calculating the characteristics for each security, and then calculating the market value weighted average of these values for the portfolio. Allocation by Sector - Sector allocation is one of the tools which managers often use to add value without impacting the duration of the portfolio. The sector weights exhibit can be used to contrast a portfolio’s weights with those of the index to identify any significant sector bets. Average Coupon - The average coupon is the market value weighted average coupon of all securities in the portfolio. The total portfolio coupon payments per year are divided by the total portfolio par value. Average Moody’s Rating for Total Portfolio - A measure of the credit quality as determined by the individual security ratings. The ratings for each security, from Moody’s Investor Service, are compiled into a composite rating for the whole portfolio. Quality symbols range from Aaa+ (highest investment quality - lowest credit risk) to C (lowest investment quality - highest credit risk). Average Option Adjusted (Effective) Convexity - Convexity is a measure of the portfolio’s exposure to interest rate risk. It is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally, securities with negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in duration. When a security’s duration changes it indicates that the stream of expected future cash-flows has changed, generally having a significant impact on the value of the security. The option adjusted convexity for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Option Adjusted (Effective) Duration - Duration is one measure of the portfolio’s exposure to interest rate risk. Generally, the higher a portfolio’s duration, the more that its value will change in response to interest rate changes. The option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Price - The average price is equal to the portfolio market value divided by the number of securities in the portfolio. Portfolios with an average price above par will tend to generate more current income than those with an average price below par. Average Years to Expected Maturity - This is a measure of the market-value-weighted average of the years to expected maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Years to Stated Maturity - The average years to stated maturity is the market value weighted average time to stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund paydowns, or prepayments. Current Yield - The current yield is the current annual income generated by the total portfolio market value. It is equal to the total portfolio coupon payments per year divided by the current total portfolio market value. 26Callan Fixed Income Portfolio Characteristics Duration Dispersion - Duration dispersion is the market-value weighted standard deviation of the portfolio’s individual security durations around the total portfolio duration. The higher the dispersion, the more variable the security durations relative to the total portfolio duration ("barbellness"), and the smaller the dispersion, the more concentrated the holdings’ durations around the overall portfolio’s ("bulletness"). The purpose of this statistic is to gauge the "bulletness" or "barbellness" of a portfolio relative to its total duration and to that of its benchmark index. Effective Yield - The effective yield is the actual total annualized return that would be realized if all securities in the portfolio were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns, expected mortgage principal prepayments, and the exercise of any "in-the-money" imbedded put or call options. Weighted Average Life - The weighted average life of a security is the weighted average time to payment of all remaining principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This amount is then divided by the total amount of principal remaining. 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7'*OREDO,QYHVWPHQW6ROXWLRQV±7'(SRFK 7KH&DUO\OH*URXS 7KH'(6KDZ*URXS 7KH7&:*URXS,QF 7KRPSVRQ6LHJHO :DOPVOH\//& 73*$QJHOR*RUGRQ 8//,&2,QYHVWPHQW$GYLVRUV,QF 9DQ(FN 9LFWRU\&DSLWDO0DQDJHPHQW,QF 9LUWXV,QYHVWPHQW3DUWQHUV,QF 9RQWREHO$VVHW0DQDJHPHQW,QF 9R\D :DOWHU6FRWW 3DUWQHUV/LPLWHG :DVDWFK*OREDO,QYHVWRUV :&0,QYHVWPHQW0DQDJHPHQW :HOOLQJWRQ0DQDJHPHQW&RPSDQ\//3 :HVWHUQ$VVHW0DQDJHPHQW&RPSDQ\//& :HVWILHOG&DSLWDO0DQDJHPHQW&RPSDQ\/3 :LOOLDP%ODLU &RPSDQ\//& ;SRQDQFH,QF Callan I Important Disclosures Information contained in this document may include confidential, trade secret and/or proprietary information of Callan and the client. It is incumbent upon the user to maintain such information in strict confidence. Neither this document nor any specific information contained herein is to be used other than by the intended recipient for its intended purpose. The content of this document is particular to the client and should not be relied upon by any other individual or entity. There can be no assurance that the performance of any account or investment will be comparable to the performance information presented in this document. Certain information herein has been compiled by Callan from a variety of sources believed to be reliable but for which Callan has not necessarily verified for accuracy or completeness. Information contained herein may not be current. Callan has no obligation to bring current the information contained herein. Callan’s performance, market value, and, if applicable, liability calculations are inherently estimates based on data available at the time each calculation is performed and may later be determined to be incorrect or require subsequent material adjustment due to many variables including, but not limited to, reliance on third party data, differences in calculation methodology, presence of illiquid assets, the timing and magnitude of unrecognized cash flows, and other data/assumptions needed to prepare such estimated calculations. In no event should the performance measurement and reporting services provided by Callan be used in the calculation, deliberation, policy determination, or any other action of the client as it pertains to determining amounts, timing or activity of contribution levels or funding amounts, rebalancing activity, benefit payments, distribution amounts, and/or performance-based fee amounts, unless the client understands and accepts the inherent limitations of Callan’s estimated performance, market value, and liability calculations. Callan’s performance measurement service reports estimated returns for a portfolio and compares them against relevant benchmarks and peer groups, as appropriate; such service may also report on historical portfolio holdings, comparing them to holdings of relevant benchmarks and peer groups, as appropriate ("portfolio holdings analysis"). To the extent that Callan’s reports include a portfolio holdings analysis, Callan relies entirely on holdings, pricing, characteristics, and risk data provided by third parties including custodian banks, record keepers, pricing services, index providers, and investment managers. Callan reports the performance and holdings data as received and does not attempt to audit or verify the holdings data. Callan is not responsible for the accuracy or completeness of the performance or holdings data received from third parties and such data may not have been verified for accuracy or completeness. Callan’s performance measurement service may report on illiquid asset classes, including, but not limited to, private real estate, private equity, private credit, hedge funds and infrastructure. The final valuation reports, which Callan receives from third parties, for of these types of asset classes may not be available at the time a Callan performance report is issued. As a result, the estimated returns and market values reported for these illiquid asset classes, as well as for any composites including these illiquid asset classes, including any total fund composite prepared, may not reflect final data, and therefore may be subject to revision in future quarters. The content of this document may consist of statements of opinion, which are made as of the date they are expressed and are not statements of fact. The opinions expressed herein may change based upon changes in economic, market, financial and political conditions and other factors. Callan has no obligation to bring current the opinions expressed herein. The information contained herein may include forward-looking statements regarding future results. The forward-looking statements herein: (i) are best estimations consistent with the information available as of the date hereof and (ii) involve known and unknown risks and uncertainties. Actual results may vary, perhaps materially, from the future results projected in this document. Undue reliance should not be placed on forward-looking statements. Callan is not responsible for reviewing the risks of individual securities or the compliance/non-compliance of individual security holdings with a client’s investment policy guidelines. This document should not be construed as legal or tax advice on any matter. You should consult with legal and tax advisers before applying any of this information to your particular situation. Reference to, or inclusion in this document of, any product, service or entity should not necessarily be construed as recommendation, approval, or endorsement or such product, service or entity by Callan. This document is provided in connection with Callan’s consulting services and should not be viewed as an advertisement of Callan, or of the strategies or products discussed or referenced herein. The issues considered and risks highlighted herein are not comprehensive and other risks may exist that the user of this document may deem material regarding the enclosed information. Please see any applicable full performance report or annual communication for other important disclosures. Unless Callan has been specifically engaged to do so, Callan does not conduct background checks or in-depth due diligence of the operations of any investment manager search candidate or investment vehicle, as may be typically performed in an operational due diligence evaluation assignment and in no event does Callan conduct due diligence beyond what is described in its report to the client. Any decision made on the basis of this document is sole responsibility of the client, as the intended recipient, and it is incumbent upon the client to make an independent determination of the suitability and consequences of such a decision. Callan undertakes no obligation to update the information contained herein except as specifically requested by the client. Past performance is no guarantee of future results. /ŶǀĞƐƚŵĞŶƚdƌĂŶƐĂĐƚŝŽŶƐĂŶĚĂůĂŶĐĞƐŝŶ>/& Par Value Book Value Market Value Rate Yield Balance 9/1/2025 $22,812,599 $22,812,599 $22,812,599 4.21 4.21 Deposits: 9/2/2025 33,100,000 33,100,000 33,100,000 4.21 4.21 9/30/2025 28,100,000 28,100,000 28,100,000 4.21 4.21 Total Deposits 61,200,000 61,200,000 61,200,000 4.21 4.21 Quarterly Interest Distribution - - - 4.21 4.21 Withdrawals: 9/9/2025 (2,300,000) (2,300,000) (2,300,000) 4.21 4.21 9/16/2025 (7,900,000) (7,900,000) (7,900,000) 4.21 4.21 9/22/2025 (7,800,000) (7,800,000) (7,800,000) 4.21 4.21 9/23/2025 (9,300,000) (9,300,000) (9,300,000) 4.21 4.21 - - 4.21 4.21 Total Withdrawals (27,300,000) (27,300,000) (27,300,000) 4.21 4.21 Balance 9/30/2025 $56,712,599 $56,712,599 $56,712,599 4.21 4.21 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2025 EzDĞůůŽŶKǁŶĞƌŽŶƚƌŽůůĞĚ/ŶƐƵƌĂŶĐĞWƌŽŐƌĂŵƐĐƌŽǁĐĐŽƵŶƚ Current Period Year-to-Date Go Paperless. Securely access your accounts online to view your statements. Ask your BNY contact how we can help you access your account balances and activity in real time, receive your reports, enter your own transactions or submit an audit confirmation online. Also be sure to ask how NEXEN(SM) Gateway, our cloud-based ecosystem, can help you. Visit us at www.bny.com CLIENT SERVICE MANAGER: ROSS KEGLER Percent of all Investments Asset Classification Market Value 100% TOTAL OF ALL INVESTMENTS 250,000.00 Estimated Market Asset Classification Market Value Cost Accrued Income Annual Income Yield ACCOUNT TOTALS 250,000.00 250,000.00 0.00 0.00 0.00 % Realized Transaction Category Income Principal Gains/Losses Income Principal OPENING BALANCE 2,403.62- 252,403.62 2,403.62- 252,403.62 CLOSING BALANCE 2,403.62- 252,403.62 0.00 2,403.62- 252,403.62 Account Statement Account Overview Summary of Assets Held by Asset Classification Summary of Cash Transactions by Transaction Category Statement Period 06/01/2025 Through 06/30/2025 Account 00300282 Base Currency = USD OCSD LIBERTY MUTUAL 240 GREENWICH ST NEW YORK, NY 10286 +12128152716 ROSS.B.KEGLER@BNYMELLON.COM 100% CASH AND SHORT TERM 250,000.00 CASH AND SHORT TERM 250,000.00 250,000.00 0.00 0.00 0.00 % The above cash transactions summary is provided for information purposes only and may not reflect actual taxable income or deductible expenses as reportable under the Internal Revenue Code. Page 1 of 2 e 1 2 5 1 6 2 n 1 1 1 3 9 0 a 0 1 t D O M i W I s 5 5 6 , 8 2 4 ►BNY 0 The Bank of New York Mellon may utilize subsidiaries and affiliates to provide services and certain products to the Account. Subsidiaries and affiliates may be compensated for their services and products. The value of securities set forth on this Account Statement are determined by The Bank of New York Mellon for Corporate Trust on the basis of market prices and information obtained by The Bank of New York Mellon from unaffiliated third parties (including independent pricing vendors) ("third party pricing services"). The Bank of New York Mellon has not verified such market values or information and makes no assurances as to the accuracy or correctness of such market values or information or that the market values set forth on this Account Statement reflect the value of the securities that can be realized upon the sale of such securities. In addition, the market values for securities set forth in this Account Statement may differ from the market prices and information for the same securities used by other business units of The Bank of New York Mellon or its subsidiaries or affiliates based upon market prices and information received from other third party pricing services utilized by such other business units. Corporate Trust does not compare its market values with those used by, or reconcile different market values used by, other business units of The Bank of New York Mellon or its subsidiaries or its affiliates. The Bank of New York Mellon shall not be liable for any loss, damage or expense incurred as a result of or arising from or related to the market values or information provided by third party pricing services or the differences in market prices or information provided by other third party pricing services. No Transactions This Period Accrued Estimated Market Shares/Par Value Asset Description Market Price Market Value Cost Average Cost Income Income Yield Realized Transaction Date Transaction Description Income Principal Cost Gains/Losses Statement Period 06/01/2025 Through 06/30/2025 Statement of Assets Held by Asset Classification Statement of Transactions by Transaction Date Account 00300282 Base Currency = USD OCSD LIBERTY MUTUAL CASH BALANCE 250,000.00 250,000.00 0.00000 0.00 0.00 0.00% Total Market Value Plus Total Accrued Income 250,000.00 Cumulative realized capital gain and loss position from 12/31/2024 for securities held in principal of account: Short Term: 0.00 * Long Term: 0.00 * * The above gain and loss position does not include transactions where tax cost information is incomplete or unavailable. CASH AND SHORT TERM Total CASH AND SHORT TERM 250,000.00 250,000.00 0.00 0.00 0.00% ACCOUNT TOTALS 250,000.00 250,000.00 0.00 0.00 0.00% Page 2 of 2 e 1 2 5 1 6 2 n 1 1 1 3 9 0 a 0 1 t D O M i W I s 5 5 6 , 8 2 5 ►BNY Current Period Year-to-Date Go Paperless. Securely access your accounts online to view your statements. Ask your BNY contact how we can help you access your account balances and activity in real time, receive your reports, enter your own transactions or submit an audit confirmation online. Also be sure to ask how NEXEN(SM) Gateway, our cloud-based ecosystem, can help you. Visit us at www.bny.com CLIENT SERVICE MANAGER: ROSS KEGLER Percent of all Investments Asset Classification Market Value 100% TOTAL OF ALL INVESTMENTS 250,000.00 Estimated Market Asset Classification Market Value Cost Accrued Income Annual Income Yield ACCOUNT TOTALS 250,000.00 250,000.00 0.00 0.00 0.00 % Realized Transaction Category Income Principal Gains/Losses Income Principal OPENING BALANCE 2,403.62- 252,403.62 2,403.62- 252,403.62 CLOSING BALANCE 2,403.62- 252,403.62 0.00 2,403.62- 252,403.62 Account Statement Account Overview Summary of Assets Held by Asset Classification Summary of Cash Transactions by Transaction Category Statement Period 09/01/2025 Through 09/30/2025 Account 00300282 Base Currency = USD OCSD LIBERTY MUTUAL 240 GREENWICH ST NEW YORK, NY 10286 +12128152716 ROSS.B.KEGLER@BNYMELLON.COM 100% CASH AND SHORT TERM 250,000.00 CASH AND SHORT TERM 250,000.00 250,000.00 0.00 0.00 0.00 % The above cash transactions summary is provided for information purposes only and may not reflect actual taxable income or deductible expenses as reportable under the Internal Revenue Code. Page 1 of 2 e 1 0 4 7 1 5 n 0 9 1 2 4 1 a 0 1 t D O M i W I s 3 8 4 , 0 7 0 ►BNY 0 The Bank of New York Mellon may utilize subsidiaries and affiliates to provide services and certain products to the Account. Subsidiaries and affiliates may be compensated for their services and products. The value of securities set forth on this Account Statement are determined by The Bank of New York Mellon for Corporate Trust on the basis of market prices and information obtained by The Bank of New York Mellon from unaffiliated third parties (including independent pricing vendors) ("third party pricing services"). The Bank of New York Mellon has not verified such market values or information and makes no assurances as to the accuracy or correctness of such market values or information or that the market values set forth on this Account Statement reflect the value of the securities that can be realized upon the sale of such securities. In addition, the market values for securities set forth in this Account Statement may differ from the market prices and information for the same securities used by other business units of The Bank of New York Mellon or its subsidiaries or affiliates based upon market prices and information received from other third party pricing services utilized by such other business units. Corporate Trust does not compare its market values with those used by, or reconcile different market values used by, other business units of The Bank of New York Mellon or its subsidiaries or its affiliates. The Bank of New York Mellon shall not be liable for any loss, damage or expense incurred as a result of or arising from or related to the market values or information provided by third party pricing services or the differences in market prices or information provided by other third party pricing services. No Transactions This Period Accrued Estimated Market Shares/Par Value Asset Description Market Price Market Value Cost Average Cost Income Income Yield Realized Transaction Date Transaction Description Income Principal Cost Gains/Losses Statement Period 09/01/2025 Through 09/30/2025 Statement of Assets Held by Asset Classification Statement of Transactions by Transaction Date Account 00300282 Base Currency = USD OCSD LIBERTY MUTUAL CASH BALANCE 250,000.00 250,000.00 0.00000 0.00 0.00 0.00% Total Market Value Plus Total Accrued Income 250,000.00 Cumulative realized capital gain and loss position from 12/31/2024 for securities held in principal of account: Short Term: 0.00 * Long Term: 0.00 * * The above gain and loss position does not include transactions where tax cost information is incomplete or unavailable. CASH AND SHORT TERM Total CASH AND SHORT TERM 250,000.00 250,000.00 0.00 0.00 0.00% ACCOUNT TOTALS 250,000.00 250,000.00 0.00 0.00 0.00% Page 2 of 2 e 1 0 4 7 1 5 n 0 9 1 2 4 1 a 0 1 t D O M i W I s 3 8 4 , 0 7 1 ►BNY WZ^^ĞĐƚŝŽŶϭϭϱdƌƵƐƚĐĐŽƵŶƚZĞƉŽƌƚ ORANGE COUNTY SANITATION DISTRICT PARS Post-Employment Benefits Trust 6/1/2025 to 6/30/2025 Robert Thompson General Manager Orange County Sanitation District 10844 Ellis Ave. Fountain Valley, CA 92708 Account Summary Source 6/1/2025 Contributions Earnings Expenses Distributions Transfers 6/30/2025 OC SAN A1 1128 $11,100,080.56 $0.00 $337,637.97 $4,033.05 $0.00 $0.00 $11,433,685.48 OC SAN B1 1129 $5,673,769.85 $0.00 $189,299.90 $2,063.97 $0.00 $0.00 $5,861,005.78 Totals $16,773,850.41 $0.00 $526,937.87 $6,097.02 $0.00 $0.00 $17,294,691.26 Investment Selection Source OC SAN A1 OC SAN B1 Investment Objective Source OC SAN A1 OC SAN B1 Investment Return Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years OC SAN A1 3.04%5.63%10.05%9.86%--1/14/2022 OC SAN B1 3.34%6.51%10.80%11.10%--1/14/2022 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Individual account based on Balanced - Strategic Blend. The dual goals of the Balanced Strategy are growth of principal and income. While dividend and interest income are an important component of the objective's total return, it is expected that capital appreciation will comprise a larger portion of the total return. The portfolio will be allocated between equity and fixed income investments. Account Report for the Period Balance as of Orange County SD - PEN A1 Balance as of Individual account based on Moderate - Strategic Blend. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Orange County SD - PEN B1 Plan's Inception Date PUBLIC AGENCY RETIREMENT SERVICES ORANGE COUNTY SANITATION DISTRICT PARS Post-Employment Benefits Trust 9/1/2025 to 9/30/2025 Robert Thompson General Manager Orange County Sanitation District 10844 Ellis Ave. Fountain Valley, CA 92708 Account Summary Source 9/1/2025 Contributions Earnings Expenses Distributions Transfers 9/30/2025 OC SAN A1 1128 $11,714,172.80 $0.00 $239,296.25 $4,125.86 $0.00 $0.00 $11,949,343.19 OC SAN B1 1129 $6,021,538.84 $0.00 $135,274.48 $2,124.63 $0.00 $0.00 $6,154,688.69 Totals $17,735,711.64 $0.00 $374,570.73 $6,250.49 $0.00 $0.00 $18,104,031.88 Investment Selection Source OC SAN A1 OC SAN B1 Investment Objective Source OC SAN A1 OC SAN B1 Investment Return Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years OC SAN A1 2.04%4.62%9.12%13.23%--1/14/2022 OC SAN B1 2.25%5.13%10.32%14.75%--1/14/2022 Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change. Individual account based on Balanced - Strategic Blend. The dual goals of the Balanced Strategy are growth of principal and income. While dividend and interest income are an important component of the objective's total return, it is expected that capital appreciation will comprise a larger portion of the total return. The portfolio will be allocated between equity and fixed income investments. Account Report for the Period Balance as of Orange County SD - PEN A1 Balance as of Individual account based on Moderate - Strategic Blend. The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments. Orange County SD - PEN B1 Plan's Inception Date PUBLIC AGENCY RETIREMENT SERVICES WZ^Ͳh͘^͘ĂŶŬ/ŶǀĞƐƚŵĞŶƚĞƚĂŝů Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio USD-U.S._DOLLAR Cash & Cash Equivalents FIRST AM GOVT OB FD CL X CUSIP: 31846V336 Ticker: FGXXX 2.42% 276,703.5600 1.0000 30-Jun-25 276,703.56 276,703.56 - 11,788.75 4.26% Principal Mutual/Collective Funds BAIRD AGGREGATE BOND FD INSTL CUSIP: 057071854 Ticker: BAGIX 13.02% 150,970.4950 9.8500 30-Jun-25 1,487,059.38 1,457,902.53 29,156.85 60,388.20 4.06% Principal Mutual/Collective Funds COHEN & STEERS INSTL REALTY SHARES CUSIP: 19247U106 Ticker: CSRIX 2.32% 5,372.1740 49.2700 30-Jun-25 264,687.01 274,141.43 -9,454.42 8,036.77 3.04% Principal Mutual/Collective Funds COLUMBIA CONTRARIAN CORE FUND CUSIP: 19766M709 Ticker: COFYX 7.79% 22,930.1620 38.8000 30-Jun-25 889,690.29 788,177.24 101,513.05 5,801.33 0.65% Principal Mutual/Collective Funds COLUMBIA SMALL CAP GROWTH INST3 CUSIP: 19765Y340 Ticker: CSGYX 0.37% 1,408.8900 30.2800 30-Jun-25 42,661.19 38,772.65 3,888.54 - - Principal Mutual/Collective Funds DODGE COX INCOME CUSIP: 256210105 Ticker: DODIX 8.00% 72,278.4450 12.6400 30-Jun-25 913,599.54 904,901.94 8,697.60 38,596.69 4.22% Principal Mutual/Collective Funds EMERALD GROWTH INSTITUTIONAL CUSIP: 317609253 Ticker: FGROX 0.35% 1,479.9720 27.1600 30-Jun-25 40,196.04 32,092.08 8,103.96 1,000.46 2.49% Principal INVESTMENT - DETAIL Run Date : 08/07/2025 Page 1 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds FIDELITY INTERNATIONAL INDEX FUND CUSIP: 315911727 Ticker: FSPSX 3.28% 6,537.2120 57.3300 30-Jun-25 374,778.36 325,982.40 48,795.96 10,171.90 2.71% Principal Mutual/Collective Funds GOLDMAN SACHS GQG PTNRS INTL OPPS R6 CUSIP: 38147N269 Ticker: GSIYX 1.24% 6,266.5160 22.6500 30-Jun-25 141,936.59 141,878.85 57.74 2,832.47 2.00% Principal Mutual/Collective Funds HARTFORD SCHRODERS EMERGING MARKETS CUSIP: 41665X859 Ticker: HHHFX 2.53% 15,214.7020 19.0100 30-Jun-25 289,231.49 248,715.36 40,516.13 3,377.66 1.17% Principal Mutual/Collective Funds ISHARES CORE U.S. AGGREGATE BOND ETF CUSIP: 464287226 Ticker: AGG 11.00% 12,666.0000 99.2000 30-Jun-25 1,256,467.20 1,234,256.11 22,211.09 47,598.83 3.79% Principal Mutual/Collective Funds LAZARD CL LIST INFRASTR INST CUSIP: 52106N459 Ticker: GLIFX 1.37% 8,743.4900 17.9600 30-Jun-25 157,033.08 145,466.59 11,566.49 4,328.03 2.76% Principal Mutual/Collective Funds MFS INTERNATIONAL GROWTH R6 CUSIP: 552746356 Ticker: MGRDX 1.27% 3,039.1450 47.7900 30-Jun-25 145,240.74 123,202.81 22,037.93 2,133.48 1.47% Principal Mutual/Collective Funds NYLI CBRE GLOBAL INFRASTRUCTURE CUSIP: 56064L280 Ticker: VCRQX 1.25% 10,026.5660 14.2700 30-Jun-25 143,079.10 131,036.83 12,042.27 3,058.10 2.14% Principal INVESTMENT - DETAIL Run Date : 08/07/2025 Page 2 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds NYLI MACKAY HIGH YIELD CORP BD FD R6 CUSIP: 56063N881 Ticker: MHYSX 2.22% 48,657.9390 5.2100 30-Jun-25 253,507.86 250,220.85 3,287.01 15,813.83 6.24% Principal Mutual/Collective Funds PGIM TOTAL RETURN BOND CL R6 CUSIP: 74440B884 Ticker: PTRQX 8.90% 84,386.1380 12.0400 30-Jun-25 1,016,009.10 1,076,425.91 -60,416.81 48,100.10 4.73% Principal Mutual/Collective Funds PUTNAM CORE EQUITY FUND Y CUSIP: 74676P839 Ticker: PMYYX 3.35% 8,480.3750 45.1800 30-Jun-25 383,143.34 368,012.63 15,130.71 2,671.32 0.70% Principal Mutual/Collective Funds SCHWAB U S LARGE CAP ETF CUSIP: 808524201 Ticker: SCHX 23.84% 111,426.0000 24.4400 30-Jun-25 2,723,251.44 2,546,060.71 177,190.73 31,979.26 1.17% Principal Mutual/Collective Funds UNDISCOVERED MGRS BEHAVIORAL VALUE CUSIP: 904504479 Ticker: UBVFX 1.05% 1,456.4640 82.1100 30-Jun-25 119,590.26 111,004.57 8,585.69 2,417.73 2.02% Principal Mutual/Collective Funds VOYA INTERMEDIATE BOND FUND CLASS R6 CUSIP: 92913L569 Ticker: IIBZX 4.41% 57,312.4180 8.7900 30-Jun-25 503,776.15 503,742.62 33.53 24,185.84 4.80% Principal USD-U.S._DOLLAR Cash & Cash Equivalents 2.42%276,703.56 276,703.56 - 11,788.75 4.26% Mutual/Collective Funds 97.58%11,144,938.16 10,701,994.11 442,944.05 312,492.00 2.80% INVESTMENT - DETAIL Run Date : 08/07/2025 Page 3 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Total USD-U.S._DOLLAR 100.00% 11,421,641.72 10,978,697.67 442,944.05 324,280.75 2.84% Total (U.S. DOLLAR) 100.00% 11,421,641.72 10,978,697.67 442,944.05 324,280.75 2.84% Grand Total (U.S. DOLLAR) 100.00% 11,421,641.72 10,978,697.67 442,944.05 324,280.75 2.84% INVESTMENT - DETAIL Run Date : 08/07/2025 Page 4 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio USD-U.S._DOLLAR Cash & Cash Equivalents FIRST AM GOVT OB FD CL X CUSIP: 31846V336 Ticker: FGXXX 2.20% 128,697.2600 1.0000 30-Jun-25 128,697.26 128,697.26 - 5,483.05 4.26% Principal Mutual/Collective Funds BAIRD AGGREGATE BOND FD INSTL CUSIP: 057071854 Ticker: BAGIX 10.14% 60,290.0990 9.8500 30-Jun-25 593,857.48 582,194.78 11,662.70 24,116.04 4.06% Principal Mutual/Collective Funds COHEN & STEERS INSTL REALTY SHARES CUSIP: 19247U106 Ticker: CSRIX 2.78% 3,305.6730 49.2700 30-Jun-25 162,870.51 169,518.90 -6,648.39 4,945.29 3.04% Principal Mutual/Collective Funds COLUMBIA CONTRARIAN CORE FUND CUSIP: 19766M709 Ticker: COFYX 9.47% 14,284.0100 38.8000 30-Jun-25 554,219.59 491,448.40 62,771.19 3,613.85 0.65% Principal Mutual/Collective Funds COLUMBIA SMALL CAP GROWTH INST3 CUSIP: 19765Y340 Ticker: CSGYX 0.45% 866.4360 30.2800 30-Jun-25 26,235.68 23,844.32 2,391.36 - - Principal Mutual/Collective Funds DODGE COX INCOME CUSIP: 256210105 Ticker: DODIX 6.26% 28,984.4140 12.6400 30-Jun-25 366,362.99 363,119.64 3,243.35 15,477.68 4.22% Principal Mutual/Collective Funds EMERALD GROWTH INSTITUTIONAL CUSIP: 317609253 Ticker: FGROX 0.42% 910.1320 27.1600 30-Jun-25 24,719.19 19,741.67 4,977.52 615.25 2.49% Principal INVESTMENT - DETAIL Run Date : 08/07/2025 Page 5 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds FIDELITY INTERNATIONAL INDEX FUND CUSIP: 315911727 Ticker: FSPSX 3.97% 4,052.6740 57.3300 30-Jun-25 232,339.80 202,186.97 30,152.83 6,305.96 2.71% Principal Mutual/Collective Funds GOLDMAN SACHS GQG PTNRS INTL OPPS R6 CUSIP: 38147N269 Ticker: GSIYX 1.50% 3,872.0180 22.6500 30-Jun-25 87,701.21 87,572.44 128.77 1,750.15 2.00% Principal Mutual/Collective Funds HARTFORD SCHRODERS EMERGING MARKETS CUSIP: 41665X859 Ticker: HHHFX 3.02% 9,302.5570 19.0100 30-Jun-25 176,841.61 152,357.07 24,484.54 2,065.17 1.17% Principal Mutual/Collective Funds ISHARES CORE U.S. AGGREGATE BOND ETF CUSIP: 464287226 Ticker: AGG 9.35% 5,518.0000 99.2000 30-Jun-25 547,385.60 537,876.20 9,509.40 20,736.64 3.79% Principal Mutual/Collective Funds LAZARD CL LIST INFRASTR INST CUSIP: 52106N459 Ticker: GLIFX 1.59% 5,183.6430 17.9600 30-Jun-25 93,098.23 86,240.91 6,857.32 2,565.90 2.76% Principal Mutual/Collective Funds MFS INTERNATIONAL GROWTH R6 CUSIP: 552746356 Ticker: MGRDX 1.45% 1,779.6260 47.7900 30-Jun-25 85,048.33 72,064.01 12,984.32 1,249.30 1.47% Principal Mutual/Collective Funds NYLI CBRE GLOBAL INFRASTRUCTURE CUSIP: 56064L280 Ticker: VCRQX 1.50% 6,140.5450 14.2700 30-Jun-25 87,625.58 80,268.57 7,357.01 1,872.87 2.14% Principal INVESTMENT - DETAIL Run Date : 08/07/2025 Page 6 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds NYLI MACKAY HIGH YIELD CORP BD FD R6 CUSIP: 56063N881 Ticker: MHYSX 1.72% 19,361.2840 5.2100 30-Jun-25 100,872.29 99,564.37 1,307.92 6,292.42 6.24% Principal Mutual/Collective Funds PGIM TOTAL RETURN BOND CL R6 CUSIP: 74440B884 Ticker: PTRQX 7.04% 34,245.0180 12.0400 30-Jun-25 412,310.02 436,079.12 -23,769.10 19,519.66 4.73% Principal Mutual/Collective Funds PUTNAM CORE EQUITY FUND Y CUSIP: 74676P839 Ticker: PMYYX 4.02% 5,215.3080 45.1800 30-Jun-25 235,627.62 226,444.59 9,183.03 1,642.82 0.70% Principal Mutual/Collective Funds SCHWAB U S LARGE CAP ETF CUSIP: 808524201 Ticker: SCHX 28.53% 68,354.0000 24.4400 30-Jun-25 1,670,571.76 1,561,957.22 108,614.54 19,617.60 1.17% Principal Mutual/Collective Funds UNDISCOVERED MGRS BEHAVIORAL VALUE CUSIP: 904504479 Ticker: UBVFX 1.15% 820.8650 82.1100 30-Jun-25 67,401.23 62,203.33 5,197.90 1,362.64 2.02% Principal Mutual/Collective Funds VOYA INTERMEDIATE BOND FUND CLASS R6 CUSIP: 92913L569 Ticker: IIBZX 3.44% 22,924.9670 8.7900 30-Jun-25 201,510.46 201,497.05 13.41 9,674.34 4.80% Principal USD-U.S._DOLLAR Cash & Cash Equivalents 2.20%128,697.26 128,697.26 - 5,483.05 4.26% Mutual/Collective Funds 97.80%5,726,599.15 5,456,179.56 270,419.59 143,423.57 2.50% INVESTMENT - DETAIL Run Date : 08/07/2025 Page 7 of 8 [!libank. Multiple Accounts As Of Date : 06/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Total USD-U.S._DOLLAR 100.00% 5,855,296.41 5,584,876.82 270,419.59 148,906.62 2.54% Total (U.S. DOLLAR) 100.00% 5,855,296.41 5,584,876.82 270,419.62 148,906.62 2.54% Grand Total (U.S. DOLLAR) 100.00% 5,855,296.41 5,584,876.82 270,419.62 148,906.62 2.54% INVESTMENT - DETAIL Run Date : 08/07/2025 Page 8 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio USD-U.S._DOLLAR Cash & Cash Equivalents FIRST AM GOVT OB FD CL X CUSIP: 31846V336 Ticker: FGXXX 2.81% 334,988.6000 1.0000 30-Sep-25 334,988.60 334,988.60 - 13,525.72 4.04% Principal Mutual/Collective Funds BAIRD AGGREGATE BOND FD INSTL CUSIP: 057071854 Ticker: BAGIX 12.72% 152,504.8660 9.9600 30-Sep-25 1,518,948.47 1,473,027.06 45,921.41 61,764.47 4.07% Principal Mutual/Collective Funds COHEN & STEERS INSTL REALTY SHARES CUSIP: 19247U106 Ticker: CSRIX 2.25% 5,422.8750 49.5300 30-Sep-25 268,595.00 276,639.49 -8,044.49 8,112.62 3.02% Principal Mutual/Collective Funds COLUMBIA CONTRARIAN CORE FUND CUSIP: 19766M709 Ticker: COFYX 7.77% 22,187.7720 41.7900 30-Sep-25 927,226.99 763,574.44 163,652.55 5,613.51 0.61% Principal Mutual/Collective Funds COLUMBIA SMALL CAP GROWTH INST3 CUSIP: 19765Y340 Ticker: CSGYX 0.41% 1,408.8900 34.5800 30-Sep-25 48,719.42 38,772.65 9,946.77 - - Principal Mutual/Collective Funds DODGE COX INCOME CUSIP: 256210105 Ticker: DODIX 7.76% 72,278.4450 12.8200 30-Sep-25 926,609.66 904,901.94 21,707.72 38,958.08 4.20% Principal Mutual/Collective Funds EMERALD GROWTH INSTITUTIONAL CUSIP: 317609253 Ticker: FGROX 0.37% 1,479.9720 29.5100 30-Sep-25 43,673.97 32,092.08 11,581.89 1,000.46 2.29% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 1 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds FIDELITY EMERGING MARKETS INDEX FUND CUSIP: 316146331 Ticker: FPADX 2.81% 25,059.7710 13.4000 30-Sep-25 335,800.93 305,000.00 30,800.93 7,066.86 2.10% Principal Mutual/Collective Funds FIDELITY INTERNATIONAL INDEX FUND CUSIP: 315911727 Ticker: FSPSX 3.64% 7,237.0020 59.9800 30-Sep-25 434,075.38 365,982.40 68,092.98 11,260.78 2.59% Principal Mutual/Collective Funds GOLDMAN SACHS GQG PTNRS INTL OPPS R6 CUSIP: 38147N269 Ticker: GSIYX 1.19% 6,266.5160 22.7300 30-Sep-25 142,437.91 141,878.85 559.06 2,832.47 1.99% Principal Mutual/Collective Funds ISHARES CORE U.S. AGGREGATE BOND ETF CUSIP: 464287226 Ticker: AGG 10.64% 12,666.0000 100.2500 30-Sep-25 1,269,766.50 1,234,256.11 35,510.39 48,358.79 3.81% Principal Mutual/Collective Funds LAZARD CL LIST INFRASTR INST CUSIP: 52106N459 Ticker: GLIFX 1.34% 9,145.2460 17.4800 30-Sep-25 159,858.90 152,533.02 7,325.88 4,526.90 2.83% Principal Mutual/Collective Funds MFS INTERNATIONAL GROWTH R6 CUSIP: 552746356 Ticker: MGRDX 1.26% 3,039.1450 49.4600 30-Sep-25 150,316.11 123,202.81 27,113.30 2,133.48 1.42% Principal Mutual/Collective Funds NYLI CBRE GLOBAL INFRASTRUCTURE CUSIP: 56064L280 Ticker: VCRQX 1.26% 10,117.3460 14.8300 30-Sep-25 150,040.24 132,332.26 17,707.98 3,116.14 2.08% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 2 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds NYLI MACKAY HIGH YIELD CORP BD FD R6 CUSIP: 56063N881 Ticker: MHYSX 2.16% 49,459.9140 5.2200 30-Sep-25 258,180.75 254,398.99 3,781.76 16,420.69 6.36% Principal Mutual/Collective Funds PGIM TOTAL RETURN BOND CL R6 CUSIP: 74440B884 Ticker: PTRQX 8.61% 84,386.1380 12.1800 30-Sep-25 1,027,823.16 1,076,425.91 -48,602.75 48,100.10 4.68% Principal Mutual/Collective Funds PUTNAM CORE EQUITY FUND Y CUSIP: 74676P839 Ticker: PMYYX 3.47% 8,480.3750 48.9100 30-Sep-25 414,775.14 368,012.63 46,762.51 2,671.32 0.64% Principal Mutual/Collective Funds SCHWAB U S LARGE CAP ETF CUSIP: 808524201 Ticker: SCHX 24.18% 109,576.0000 26.3400 30-Sep-25 2,886,231.84 2,505,144.88 381,086.96 31,886.62 1.10% Principal Mutual/Collective Funds UNDISCOVERED MGRS BEHAVIORAL VALUE CUSIP: 904504479 Ticker: UBVFX 1.05% 1,456.4640 86.4700 30-Sep-25 125,940.44 111,004.57 14,935.87 2,417.73 1.92% Principal Mutual/Collective Funds VOYA INTERMEDIATE BOND FUND CLASS R6 CUSIP: 92913L569 Ticker: IIBZX 4.31% 57,991.7710 8.8700 30-Sep-25 514,387.01 509,704.91 4,682.10 24,124.58 4.69% Principal USD-U.S._DOLLAR Cash & Cash Equivalents 2.81%334,988.60 334,988.60 - 13,525.72 4.04% Mutual/Collective Funds 97.19%11,603,407.83 10,768,885.00 834,522.83 320,365.58 2.76% INVESTMENT - DETAIL Run Date : 10/30/2025 Page 3 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065800 PARS/OC SANITATION 115P-A1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Total USD-U.S._DOLLAR 100.00% 11,938,396.43 11,103,873.60 834,522.83 333,891.30 2.80% Total (U.S. DOLLAR) 100.00% 11,938,396.43 11,103,873.60 834,522.82 333,891.30 2.80% Grand Total (U.S. DOLLAR) 100.00% 11,938,396.43 11,103,873.60 834,522.82 333,891.30 2.80% INVESTMENT - DETAIL Run Date : 10/30/2025 Page 4 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio USD-U.S._DOLLAR Cash & Cash Equivalents FIRST AM GOVT OB FD CL X CUSIP: 31846V336 Ticker: FGXXX 2.48% 152,358.6300 1.0000 30-Sep-25 152,358.63 152,358.63 - 6,151.73 4.04% Principal Mutual/Collective Funds BAIRD AGGREGATE BOND FD INSTL CUSIP: 057071854 Ticker: BAGIX 9.86% 60,902.8510 9.9600 30-Sep-25 606,592.40 588,234.76 18,357.64 24,665.65 4.07% Principal Mutual/Collective Funds COHEN & STEERS INSTL REALTY SHARES CUSIP: 19247U106 Ticker: CSRIX 2.69% 3,336.8710 49.5300 30-Sep-25 165,275.22 171,056.04 -5,780.82 4,991.96 3.02% Principal Mutual/Collective Funds COLUMBIA CONTRARIAN CORE FUND CUSIP: 19766M709 Ticker: COFYX 9.37% 13,789.0830 41.7900 30-Sep-25 576,245.78 475,046.52 101,199.26 3,488.64 0.61% Principal Mutual/Collective Funds COLUMBIA SMALL CAP GROWTH INST3 CUSIP: 19765Y340 Ticker: CSGYX 0.49% 866.4360 34.5800 30-Sep-25 29,961.36 23,844.32 6,117.04 - - Principal Mutual/Collective Funds DODGE COX INCOME CUSIP: 256210105 Ticker: DODIX 6.04% 28,984.4140 12.8200 30-Sep-25 371,580.19 363,119.64 8,460.55 15,622.60 4.20% Principal Mutual/Collective Funds EMERALD GROWTH INSTITUTIONAL CUSIP: 317609253 Ticker: FGROX 0.44% 910.1320 29.5100 30-Sep-25 26,858.00 19,741.67 7,116.33 615.25 2.29% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 5 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds FIDELITY EMERGING MARKETS INDEX FUND CUSIP: 316146331 Ticker: FPADX 3.40% 15,603.3740 13.4000 30-Sep-25 209,085.21 190,000.00 19,085.21 4,400.15 2.10% Principal Mutual/Collective Funds FIDELITY INTERNATIONAL INDEX FUND CUSIP: 315911727 Ticker: FSPSX 4.29% 4,402.5690 59.9800 30-Sep-25 264,066.09 222,186.97 41,879.12 6,850.40 2.59% Principal Mutual/Collective Funds GOLDMAN SACHS GQG PTNRS INTL OPPS R6 CUSIP: 38147N269 Ticker: GSIYX 1.60% 4,324.9170 22.7300 30-Sep-25 98,305.36 97,572.44 732.92 1,954.86 1.99% Principal Mutual/Collective Funds ISHARES CORE U.S. AGGREGATE BOND ETF CUSIP: 464287226 Ticker: AGG 9.00% 5,518.0000 100.2500 30-Sep-25 553,179.50 537,876.20 15,303.30 21,067.72 3.81% Principal Mutual/Collective Funds LAZARD CL LIST INFRASTR INST CUSIP: 52106N459 Ticker: GLIFX 1.54% 5,421.8270 17.4800 30-Sep-25 94,773.54 90,430.30 4,343.24 2,683.80 2.83% Principal Mutual/Collective Funds MFS INTERNATIONAL GROWTH R6 CUSIP: 552746356 Ticker: MGRDX 1.60% 1,988.5690 49.4600 30-Sep-25 98,354.62 82,064.01 16,290.61 1,395.98 1.42% Principal Mutual/Collective Funds NYLI CBRE GLOBAL INFRASTRUCTURE CUSIP: 56064L280 Ticker: VCRQX 1.49% 6,196.1410 14.8300 30-Sep-25 91,888.77 81,061.93 10,826.84 1,908.41 2.08% Principal INVESTMENT - DETAIL Run Date : 10/30/2025 Page 6 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Mutual/Collective Funds NYLI MACKAY HIGH YIELD CORP BD FD R6 CUSIP: 56063N881 Ticker: MHYSX 1.67% 19,680.3940 5.2200 30-Sep-25 102,731.66 101,226.88 1,504.78 6,533.89 6.36% Principal Mutual/Collective Funds PGIM TOTAL RETURN BOND CL R6 CUSIP: 74440B884 Ticker: PTRQX 6.12% 30,897.7380 12.1800 30-Sep-25 376,334.45 388,915.94 -12,581.49 17,611.71 4.68% Principal Mutual/Collective Funds PUTNAM CORE EQUITY FUND Y CUSIP: 74676P839 Ticker: PMYYX 4.15% 5,215.3080 48.9100 30-Sep-25 255,080.71 226,444.59 28,636.12 1,642.82 0.64% Principal Mutual/Collective Funds SCHWAB U S LARGE CAP ETF CUSIP: 808524201 Ticker: SCHX 29.28% 68,354.0000 26.3400 30-Sep-25 1,800,444.36 1,561,957.22 238,487.14 19,891.01 1.10% Principal Mutual/Collective Funds UNDISCOVERED MGRS BEHAVIORAL VALUE CUSIP: 904504479 Ticker: UBVFX 1.15% 820.8650 86.4700 30-Sep-25 70,980.20 62,203.33 8,776.87 1,362.64 1.92% Principal Mutual/Collective Funds VOYA INTERMEDIATE BOND FUND CLASS R6 CUSIP: 92913L569 Ticker: IIBZX 3.35% 23,196.7030 8.8700 30-Sep-25 205,754.76 203,881.92 1,872.84 9,649.83 4.69% Principal USD-U.S._DOLLAR Cash & Cash Equivalents 2.48%152,358.63 152,358.63 - 6,151.73 4.04% Mutual/Collective Funds 97.52%5,997,492.16 5,486,864.68 510,627.48 146,337.33 2.44% INVESTMENT - DETAIL Run Date : 10/30/2025 Page 7 of 8 [!libank. Multiple Accounts As Of Date : 09/30/2025 Account Information Account Number Account Name 6746065801 PARS/OC SANITATION 115P-B1 Investment Detail Asset Type Asset Name Current Allocation Shares/Par Price Date Priced Market Value Fed Cost Unrealized Gain/Loss Est. Annual Income Yield Portfolio Total USD-U.S._DOLLAR 100.00% 6,149,850.79 5,639,223.31 510,627.48 152,489.06 2.48% Total (U.S. DOLLAR) 100.00% 6,149,850.79 5,639,223.31 510,627.50 152,489.06 2.48% Grand Total (U.S. DOLLAR) 100.00% 6,149,850.79 5,639,223.31 510,627.50 152,489.06 2.48% INVESTMENT - DETAIL Run Date : 10/30/2025 Page 8 of 8 [!libank. ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4582 Agenda Date:11/12/2025 Agenda Item No:6. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: INDUSTRIAL CONTROL SYSTEM PENETRATION TEST AND VULNERABILITY ASSESSMENT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Purchase Order Contract to Carahsoft Technology Corp for the purchase of an Industrial Control System Network Penetration Test and Vulnerability Assessment utilizing the cooperative OMNIA Software Solutions and Services Contract No. R240303, for a total amount not to exceed $210,750 (Includes Sales Tax); and B. Approve a contingency in the amount of $21,075 (10%). BACKGROUND Orange County Sanitation District (OC San) is upgrading the existing Supervisory Control and Data Acquisition (SCADA) Systems for the treatment plants and pump stations as part of Project J-120 Process Control Systems Upgrades. The project will replace existing obsolete human-machine- interface systems, databases and software programs including trending, diagnostic data, monitoring, control, alarming and reporting. RELEVANT STANDARDS ·Protect OC San assets ·Ensure the public’s money is wisely spent ·24/7/365 treatment plant reliability ·Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM When new systems and applications are introduced, they can bring about various vulnerabilities and risks. This is primarily because these new technologies may not have been thoroughly tested in all possible scenarios, leading to unforeseen security gaps. They may also include unpatched or vulnerable third-party components, suffer from configuration errors or weak access controls, and create new integration points that expose data or systems to attack. Orange County Sanitation District Printed on 11/4/2025Page 1 of 3 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4582 Agenda Date:11/12/2025 Agenda Item No:6. PROPOSED SOLUTION An Industrial Control System (ICS)Network Penetration Test and Vulnerability Assessment can identify system and application vulnerabilities and weaknesses. An ICS Network Penetration Test is designed to determine susceptibility to an actual attack by trying to infiltrate the target environment using current,real-world tactics,techniques and procedures. Findings and recommendations are identified and are prioritized based on the potential for process or system disruption. An ICS Network Vulnerability Assessment is designed to identify vulnerabilities in industrial networks and prioritize recommendations based on potential system impact.These include known software vulnerabilities, weak security controls, misconfigurations, and other system weaknesses. TIMING CONCERNS It is crucial to identify vulnerabilities and weaknesses and mitigate them as soon as possible.If the adversaries were to find and exploit them,they could possibly gain access and perform malicious activities. RAMIFICATIONS OF NOT TAKING ACTION Not finding and identifying vulnerabilities or weaknesses can increase risk to these vulnerabilities being exploited by those with malintent which can result in malware infections,system failures,and system outages halting operations. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Based on security review,staff recommends approving the Purchase Order Contract to Carahsoft Technology Corp utilizing the cooperative OMNIA Software Solutions and Services Contract,Contract No. R240303. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Budget FY 2025-26 Section 8,Page 10,Treatment System Improvement Project No.J- 120) and the budget is sufficient for the recommended action. Orange County Sanitation District Printed on 11/4/2025Page 2 of 3 powered by Legistar™ File #:2025-4582 Agenda Date:11/12/2025 Agenda Item No:6. 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 Printed on 11/4/2025Page 3 of 3 powered by Legistar™ ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4584 Agenda Date:11/12/2025 Agenda Item No:7. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: 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, 2025 to September 30, 2025; and B. Approve the following additions to the pre-approved Original Equipment Manufacturers (OEM) Sole Source List: ·BENTLY NEVADA, LLC - System 1 Software Maintenance & Support ·FARO TECHNOLOGIES, INC. - Laser Equipment, Hardware Service, Software, Maintenance and Training ·EMERSON PROCESS MANAGEMENT - Technical Support for Software and Equipment ·STO ADVISORS - Professional Services to Manage Pipeline and Hazardous Materials Safety Administration (PHMSA) Federal Regulations BACKGROUND Staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved and executed purchases between $50,000 and $150,000; maintenance and repairServices TaskOrdersbetween $50,000 and$500,000; andadditions tothepre-approved OEM Sole Source List. This list of additions to the pre-approved OEM Sole Source List displays the OEM added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at Orange County Sanitation District (OC San) facilities because the parts and/or service can only be provided by the OEM or their designated representative. RELEVANT STANDARDS ·Quarterly financial reporting Orange County Sanitation District Printed on 11/4/2025Page 1 of 6 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4584 Agenda Date:11/12/2025 Agenda Item No:7. ·Ensure the public’s money is wisely spent PRIOR COMMITTEE/BOARD ACTIONS December 2016 -Minute Order 12(b)authorize the General Manager to ratify additions or deletions to the OEM list on the General Manager’s quarterly approved purchases agenda report. ADDITIONAL INFORMATION In accordance with Board purchasing policies,Ordinance No.OC SAN-61,the General Manager has authority to approve and execute purchases between $50,000 and $150,000.Below is a summary of General Manager approved purchases,in amounts exceeding $50,000,for the first quarter of fiscal year 2025-26: Vendor Name Amount Department Description/Discussion A GOOD SIGN & GRAPHICS, CO. $75,000.00 Administrative Services Convenience Blanket PO for Modifications and Updating of Signage 9/1/25 - 8/31/26 GM Article 2, Section 2.2 (b) (1) AIRGAS USA, LLC $140,000.00 Operations & Maintenance Convenience Blanket PO for Miscellaneous Signs, Welding Supplies, and the Repair and Inspection of Welding Equipment 7/1/25 - 6/30/27 GM Article 2, Section 2.2 (b) (1) ALCOA TRAFFIC CONTROL, INC. $140,000.00 Operations & Maintenance Convenience Blanket PO for On-Call Traffic Setup and Support to Outside Divisions Within OC San 9/22/25 - 9/21/26 GM Article 2, Section 2.2 (b) (1) AWARDCO, INC.$57,700.00 Human Resources Blanket PO for Safety Incentives, Service Awards, and Core Awards Sole Source Justification 2867 Reason: Unique Product/Service BAY CITY INDUSTRIAL SUPPLY $59,544.21 Operations & Maintenance Purchase of One (1) Duall Club-4450 Impeller Informal Bid 140797-OR BRAND SCAFFOLD SERVICES INC $51,063.22 Operations & Maintenance Service PO for Engine 5 Catalyst Insulation Removal and Installation and Scaffolding Services at Plant 2 Informal Bid 140764-OR CALLAN LLC $75,000.00 Administrative Services Blanket PO for Investment Advisory Services, Including On-Going Investment Performance Monitoring 10/1/25 - 9/30/28 w/ Two Optional Two-Year Renewal Periods Informal Bid 139736-OR CARAHSOFT TECHNOLOGY CORPORATION $149,666.80 Administrative Services ServiceNow Software Implementation for Easement Disposition NASPO Master Contract # AR2472, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases CENTRE FOR ORGANIZATION EFFECTIVENESS $74,415.00 Human Resources Blanket PO for One (1) On-Site Seven-Day Leadership Academy training Program for EMT and Managers Sole Source Justification 2892 Reason: Human Resources - Training CORE & MAIN LP $98,852.45 Environmental Services Purchase of One (1) Hach AS950 Portable Sampler w/ Compact Base and One (1) Hach AS950 All Weather Refrigerated Sampler Specification No. E-2025-691 CORITY SOFTWARE, INC. $83,122.56 Administrative Services Annual Renewal for Cority Software Subscription 9/24/25 - 9/23/26 GSA Contract # GS-35F-0032U in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases CREATIVE AIR MECHANICAL SERVICES, LLC $96,264.00 Administrative Services Service PO to Correct Ductwork Plenum to Proper Clearance at Plant 2 CenGen TIPS- USA Cooperative Contract # 25010501, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases CS-AMSCO $53,132.00 Administrative Services Stock Item Purchase of Six (6) DeZURIK Eccentric Plug Valves Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) DEMARIA ELECTRIC MOTOR SERVICES, INC. $142,733.34 Operations & Maintenance Service PO for the Repair of the 1500hp Motor that Drives Blower #4 Sole Source Justification 2886 Reason: Unique Product/Service DIVERSIFIED THERMAL SERVICES, INC. $60,000.00 Administrative Services Convenience Blanket PO for HVAC System Repairs on an As-Needed Basis at Plant 1, Plant 2 and HQ 10/21/25 - 10/21/26 GM Article 2, Section 2.2 (b) (1) DXP ENTERPRISES, INC. $81,204.86 Administrative Services Stock Item Purchase of Two (2) Seepex Rotors and Two (2) Seepex Stators Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) EGROUP ENABLING TECHNOLOGIES, LLC $54,000.00 Administrative Services Blanket PO for Enabling Teams Voice MSPA 1/1/26 - 12/31/26 OMNIA Contract # R200803, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases EPLUS TECHNOLOGY, INC. $58,978.84 Administrative Services Veeam Data Platform Advanced Universal Subscription and License 8/10/25 - 8/9/26 Informal Bid 140980-OR FLO-SERVICES, INC. $147,187.31 Operations & Maintenance Evaluation and Teardown of Hidrostal Pump MSP # 1 at BitterPoint Pump Station Sole Source Justification 2887 Reason: Unique Product/Service FLUKE ELECTRONICS CORPORATION $84,078.50 Operations & Maintenance Purchase of Two (2) Fluke Rotalign Touch Expert Kits and All Bracket Sets Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/2021, Item 20 (B) GARDNER DENVER NASH LLC $55,452.74 Administrative Services Stock Item Purchase of one (1) ADOO Bare Blower Board Approved OEM Sole Source List M.O. 9/23/20, Item 12 (B) INNOVATIVE ENGINEERING AND MAINTENANCE $140,000.00 Operations & Maintenance Convenience Blanket PO for Urgent Operational Support at Plant 1 and 2 9/1/25 - 8/31/27 GM Article 2, Section 2.2 (b) (1) JAMISON ENGINEERING CONTRACTORS, INC. $85,000.00 Operations & Maintenance Service PO for Major Repairs at Primary Clarifiers P & Q at Plant 2 Informal Bid 141296-OR JAMISON ENGINEERING CONTRACTORS, INC. $140,000.00 Operations & Maintenance Convenience Blanket for Urgent Operational Support at all OC San Facilities 9/1/25 - 8/31/27 GM Article 2, Section 2.2 (b) (1) MH3 CORPORATION $60,000.00 Operations & Maintenance Blanket PO for Collecting and Analyzing Odor Samples Board Approved OEM Sole Source List M.O. 10/25/23, Item 9 (B) MOUSE GRAPHICS $98,000.00 Administrative Services Blanket PO for Graphic Services and Signage for HQ, Plant 1, Plant 2 and Pump Stations 10/1/25 - 9/30/26 GM Article 2, Section 2.2 (b) (1) OVIVO USA, LLC $74,400.00 Operations & Maintenance Service PO for Replacement J and A Jeta Drive Head and Rebuild Kit for Refurbishment of Existing Jeta Drive Head Sole Source Justification 2832 Reason: OEM Equipment/Part/Service OVIVO USA, LLC $147,933.00 Operations & Maintenance Purchase of One (1) Spare Drive Unit for Primary Clarifiers F and G at Plant 2 Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 2/26/2025, Item 12 (B) POWERFLO PRODUCTS INC $53,733.84 Operations & Maintenance Service PO to disassemble, clean, Inspect, and RebuildWSSP Pump Informal Bid 140803-OR PUTZMEISTER AMERICA INC $90,000.00 Operations & Maintenance Blanket PO to Conduct Annual Services on the Putzmeister HPUs, Augers, and Support Equipment at Plant 2 6/1/25 - 5/31/26 Board Approved OEM Sole Source List M.O. 5/27/20, Item 14 (B) QUINN POWER SYSTEMS $57,223.50 Operations & Maintenance Service PO for PB-C Generator 1 Radiator Overhaul Sourcewell Contract 092222-CAT, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases REAL TIME NETWORKS INC. $59,061.00 Administrative Services Purchase of one (1) KTA-8 System with 112 Positions and One (1) KTA-4 System with 56 Key Positions Sourcewell Contract 110923- DM, in Accordance with Ordinance OC SAN- 61 Section 2.03 (B) Cooperative Purchases REPUBLIC SERVICES, INC. $90,000.00 Administrative Services Blanket PO for Trash and Recycling Services at Plant 1, Plant 2, and Headquarters Sole Source Justification 2878 Reason: Unique Product/Service SDT NORTH AMERICA INC $100,908.75 Operations & Maintenance Purchase of One (1) SDT 340 System w/ UAS3 Including all Accessories Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/21, Item 20 (B) SGS US WEST COAST LLC $128,800.00 Operations & Maintenance Service PO for Inspection of 78-Inch and 120-Inch Ocean Outfall Pipelines Specification No. CS-2025-686BD TOSHIBA BUSINESS SOLUTIONS (USA) INC $70,000.00 Administrative Services Blanket PO for Toshiba Parts, Labor and Toner 8/1/25 - 7/31/26 NASPO Master Contract # 188037, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases VWR SCIENTIFIC $75,927.89 Environmental Services Purchase of (1) SeNSe2 Hardware and Accessories NASPO Master Agreement MA2024005, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases WATERLINE TECHNOLOGIES INC $90,000.00 Engineering Blanket PO for the Purchase of Sodium Hypochlorite Solution-Bleach (NaOCI) (Tote Deliveries) for Plant 1 and Plant 2 10/1/25 - 9/30/26 Informal Bid 140366-OR WESTERN EPG PRODUCTS, INC. $128,816.00 Administrative Services Stock Item Purchase of Forty-Eight (48) SCR Catalyst Replacement and Sixteen (16) Oxidation Catalyst Replacements Board Approved OEM Sole Source List M.O. 8/28/19, Item 3(B) and M.O. 5/23/18, Item 12 (B) WINDSONG PRODUCTIONS, LLC $148,863.00 Communications Blanket PO for Video Production Services Specification No. CS-2025-664BD Orange County Sanitation District Printed on 11/4/2025Page 2 of 6 powered by Legistar™ File #:2025-4584 Agenda Date:11/12/2025 Agenda Item No:7. Vendor Name Amount Department Description/DiscussionA GOOD SIGN &GRAPHICS, CO.$75,000.00 AdministrativeServices Convenience Blanket PO for Modificationsand Updating of Signage 9/1/25 - 8/31/26GM Article 2, Section 2.2 (b) (1) AIRGAS USA, LLC $140,000.00 Operations &Maintenance Convenience Blanket PO for MiscellaneousSigns, Welding Supplies, and the Repair andInspection of Welding Equipment 7/1/25 -6/30/27 GM Article 2, Section 2.2 (b) (1)ALCOA TRAFFICCONTROL, INC.$140,000.00 Operations &Maintenance Convenience Blanket PO for On-Call TrafficSetup and Support to Outside DivisionsWithin OC San 9/22/25 - 9/21/26 GM Article2, Section 2.2 (b) (1)AWARDCO, INC.$57,700.00 Human Resources Blanket PO for Safety Incentives, ServiceAwards, and Core Awards Sole SourceJustification 2867 Reason: UniqueProduct/ServiceBAY CITYINDUSTRIALSUPPLY $59,544.21 Operations &Maintenance Purchase of One (1) Duall Club-4450Impeller Informal Bid 140797-ORBRAND SCAFFOLDSERVICES INC $51,063.22 Operations &Maintenance Service PO for Engine 5 Catalyst InsulationRemoval and Installation and ScaffoldingServices at Plant 2 Informal Bid 140764-ORCALLAN LLC $75,000.00 AdministrativeServices Blanket PO for Investment AdvisoryServices, Including On-Going InvestmentPerformance Monitoring 10/1/25 - 9/30/28 w/Two Optional Two-Year Renewal PeriodsInformal Bid 139736-ORCARAHSOFT TECHNOLOGY CORPORATION $149,666.80 Administrative Services ServiceNow Software Implementation for Easement Disposition NASPO Master Contract # AR2472, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases CENTRE FOR ORGANIZATION EFFECTIVENESS $74,415.00 Human Resources Blanket PO for One (1) On-Site Seven-Day Leadership Academy training Program for EMT and Managers Sole Source Justification 2892 Reason: Human Resources - Training CORE & MAIN LP $98,852.45 Environmental Services Purchase of One (1) Hach AS950 Portable Sampler w/ Compact Base and One (1) Hach AS950 All Weather Refrigerated Sampler Specification No. E-2025-691 CORITY SOFTWARE, INC. $83,122.56 Administrative Services Annual Renewal for Cority Software Subscription 9/24/25 - 9/23/26 GSA Contract # GS-35F-0032U in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases CREATIVE AIR MECHANICAL SERVICES, LLC $96,264.00 Administrative Services Service PO to Correct Ductwork Plenum to Proper Clearance at Plant 2 CenGen TIPS- USA Cooperative Contract # 25010501, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases CS-AMSCO $53,132.00 Administrative Services Stock Item Purchase of Six (6) DeZURIK Eccentric Plug Valves Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) DEMARIA ELECTRIC MOTOR SERVICES, INC. $142,733.34 Operations & Maintenance Service PO for the Repair of the 1500hp Motor that Drives Blower #4 Sole Source Justification 2886 Reason: Unique Product/Service DIVERSIFIED THERMAL SERVICES, INC. $60,000.00 Administrative Services Convenience Blanket PO for HVAC System Repairs on an As-Needed Basis at Plant 1, Plant 2 and HQ 10/21/25 - 10/21/26 GM Article 2, Section 2.2 (b) (1) DXP ENTERPRISES, INC. $81,204.86 Administrative Services Stock Item Purchase of Two (2) Seepex Rotors and Two (2) Seepex Stators Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) EGROUP ENABLING TECHNOLOGIES, LLC $54,000.00 Administrative Services Blanket PO for Enabling Teams Voice MSPA 1/1/26 - 12/31/26 OMNIA Contract # R200803, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases EPLUS TECHNOLOGY, INC. $58,978.84 Administrative Services Veeam Data Platform Advanced Universal Subscription and License 8/10/25 - 8/9/26 Informal Bid 140980-OR FLO-SERVICES, INC. $147,187.31 Operations & Maintenance Evaluation and Teardown of Hidrostal Pump MSP # 1 at BitterPoint Pump Station Sole Source Justification 2887 Reason: Unique Product/Service FLUKE ELECTRONICS CORPORATION $84,078.50 Operations & Maintenance Purchase of Two (2) Fluke Rotalign Touch Expert Kits and All Bracket Sets Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/2021, Item 20 (B) GARDNER DENVER NASH LLC $55,452.74 Administrative Services Stock Item Purchase of one (1) ADOO Bare Blower Board Approved OEM Sole Source List M.O. 9/23/20, Item 12 (B) INNOVATIVE ENGINEERING AND MAINTENANCE $140,000.00 Operations & Maintenance Convenience Blanket PO for Urgent Operational Support at Plant 1 and 2 9/1/25 - 8/31/27 GM Article 2, Section 2.2 (b) (1) JAMISON ENGINEERING CONTRACTORS, INC. $85,000.00 Operations & Maintenance Service PO for Major Repairs at Primary Clarifiers P & Q at Plant 2 Informal Bid 141296-OR JAMISON ENGINEERING CONTRACTORS, INC. $140,000.00 Operations & Maintenance Convenience Blanket for Urgent Operational Support at all OC San Facilities 9/1/25 - 8/31/27 GM Article 2, Section 2.2 (b) (1) MH3 CORPORATION $60,000.00 Operations & Maintenance Blanket PO for Collecting and Analyzing Odor Samples Board Approved OEM Sole Source List M.O. 10/25/23, Item 9 (B) MOUSE GRAPHICS $98,000.00 Administrative Services Blanket PO for Graphic Services and Signage for HQ, Plant 1, Plant 2 and Pump Stations 10/1/25 - 9/30/26 GM Article 2, Section 2.2 (b) (1) OVIVO USA, LLC $74,400.00 Operations & Maintenance Service PO for Replacement J and A Jeta Drive Head and Rebuild Kit for Refurbishment of Existing Jeta Drive Head Sole Source Justification 2832 Reason: OEM Equipment/Part/Service OVIVO USA, LLC $147,933.00 Operations & Maintenance Purchase of One (1) Spare Drive Unit for Primary Clarifiers F and G at Plant 2 Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 2/26/2025, Item 12 (B) POWERFLO PRODUCTS INC $53,733.84 Operations & Maintenance Service PO to disassemble, clean, Inspect, and RebuildWSSP Pump Informal Bid 140803-OR PUTZMEISTER AMERICA INC $90,000.00 Operations & Maintenance Blanket PO to Conduct Annual Services on the Putzmeister HPUs, Augers, and Support Equipment at Plant 2 6/1/25 - 5/31/26 Board Approved OEM Sole Source List M.O. 5/27/20, Item 14 (B) QUINN POWER SYSTEMS $57,223.50 Operations & Maintenance Service PO for PB-C Generator 1 Radiator Overhaul Sourcewell Contract 092222-CAT, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases REAL TIME NETWORKS INC. $59,061.00 Administrative Services Purchase of one (1) KTA-8 System with 112 Positions and One (1) KTA-4 System with 56 Key Positions Sourcewell Contract 110923- DM, in Accordance with Ordinance OC SAN- 61 Section 2.03 (B) Cooperative Purchases REPUBLIC SERVICES, INC. $90,000.00 Administrative Services Blanket PO for Trash and Recycling Services at Plant 1, Plant 2, and Headquarters Sole Source Justification 2878 Reason: Unique Product/Service SDT NORTH AMERICA INC $100,908.75 Operations & Maintenance Purchase of One (1) SDT 340 System w/ UAS3 Including all Accessories Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/21, Item 20 (B) SGS US WEST COAST LLC $128,800.00 Operations & Maintenance Service PO for Inspection of 78-Inch and 120-Inch Ocean Outfall Pipelines Specification No. CS-2025-686BD TOSHIBA BUSINESS SOLUTIONS (USA) INC $70,000.00 Administrative Services Blanket PO for Toshiba Parts, Labor and Toner 8/1/25 - 7/31/26 NASPO Master Contract # 188037, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases VWR SCIENTIFIC $75,927.89 Environmental Services Purchase of (1) SeNSe2 Hardware and Accessories NASPO Master Agreement MA2024005, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases WATERLINE TECHNOLOGIES INC $90,000.00 Engineering Blanket PO for the Purchase of Sodium Hypochlorite Solution-Bleach (NaOCI) (Tote Deliveries) for Plant 1 and Plant 2 10/1/25 - 9/30/26 Informal Bid 140366-OR WESTERN EPG PRODUCTS, INC. $128,816.00 Administrative Services Stock Item Purchase of Forty-Eight (48) SCR Catalyst Replacement and Sixteen (16) Oxidation Catalyst Replacements Board Approved OEM Sole Source List M.O. 8/28/19, Item 3(B) and M.O. 5/23/18, Item 12 (B) WINDSONG PRODUCTIONS, LLC $148,863.00 Communications Blanket PO for Video Production Services Specification No. CS-2025-664BD Orange County Sanitation District Printed on 11/4/2025Page 3 of 6 powered by Legistar™ File #:2025-4584 Agenda Date:11/12/2025 Agenda Item No:7. Vendor Name Amount Department Description/DiscussionA GOOD SIGN &GRAPHICS, CO.$75,000.00 AdministrativeServices Convenience Blanket PO for Modificationsand Updating of Signage 9/1/25 - 8/31/26GM Article 2, Section 2.2 (b) (1) AIRGAS USA, LLC $140,000.00 Operations &Maintenance Convenience Blanket PO for MiscellaneousSigns, Welding Supplies, and the Repair andInspection of Welding Equipment 7/1/25 -6/30/27 GM Article 2, Section 2.2 (b) (1)ALCOA TRAFFICCONTROL, INC.$140,000.00 Operations &Maintenance Convenience Blanket PO for On-Call TrafficSetup and Support to Outside DivisionsWithin OC San 9/22/25 - 9/21/26 GM Article2, Section 2.2 (b) (1)AWARDCO, INC.$57,700.00 Human Resources Blanket PO for Safety Incentives, ServiceAwards, and Core Awards Sole SourceJustification 2867 Reason: UniqueProduct/ServiceBAY CITYINDUSTRIALSUPPLY $59,544.21 Operations &Maintenance Purchase of One (1) Duall Club-4450Impeller Informal Bid 140797-ORBRAND SCAFFOLDSERVICES INC $51,063.22 Operations &Maintenance Service PO for Engine 5 Catalyst InsulationRemoval and Installation and ScaffoldingServices at Plant 2 Informal Bid 140764-ORCALLAN LLC $75,000.00 AdministrativeServices Blanket PO for Investment AdvisoryServices, Including On-Going InvestmentPerformance Monitoring 10/1/25 - 9/30/28 w/Two Optional Two-Year Renewal PeriodsInformal Bid 139736-ORCARAHSOFTTECHNOLOGYCORPORATION$149,666.80 AdministrativeServices ServiceNow Software Implementation forEasement Disposition NASPO MasterContract # AR2472, in Accordance withOrdinance OC SAN-61 Section 2.03 (B)Cooperative PurchasesCENTRE FORORGANIZATIONEFFECTIVENESS $74,415.00 Human Resources Blanket PO for One (1) On-Site Seven-DayLeadership Academy training Program forEMT and Managers Sole SourceJustification 2892 Reason: HumanResources - TrainingCORE & MAIN LP $98,852.45 EnvironmentalServices Purchase of One (1) Hach AS950 PortableSampler w/ Compact Base and One (1)Hach AS950 All Weather RefrigeratedSampler Specification No. E-2025-691CORITYSOFTWARE, INC.$83,122.56 AdministrativeServices Annual Renewal for Cority SoftwareSubscription 9/24/25 - 9/23/26 GSA Contract# GS-35F-0032U in Accordance withOrdinance OC SAN-61 Section 2.03 (B)Cooperative PurchasesCREATIVE AIRMECHANICALSERVICES, LLC $96,264.00 AdministrativeServices Service PO to Correct Ductwork Plenum toProper Clearance at Plant 2 CenGen TIPS-USA Cooperative Contract # 25010501, inAccordance with Ordinance OC SAN-61Section 2.03 (B) Cooperative PurchasesCS-AMSCO $53,132.00 AdministrativeServices Stock Item Purchase of Six (6) DeZURIKEccentric Plug Valves Board Approved OEMSole Source List M.O. 12/14/16, Item 12 (B)DEMARIAELECTRIC MOTORSERVICES, INC.$142,733.34 Operations &Maintenance Service PO for the Repair of the 1500hpMotor that Drives Blower #4 Sole SourceJustification 2886 Reason: UniqueProduct/ServiceDIVERSIFIEDTHERMALSERVICES, INC.$60,000.00 AdministrativeServices Convenience Blanket PO for HVAC SystemRepairs on an As-Needed Basis at Plant 1,Plant 2 and HQ 10/21/25 - 10/21/26 GMArticle 2, Section 2.2 (b) (1)DXPENTERPRISES,INC.$81,204.86 AdministrativeServices Stock Item Purchase of Two (2) SeepexRotors and Two (2) Seepex Stators BoardApproved OEM Sole Source List M.O.12/14/16, Item 12 (B)EGROUPENABLINGTECHNOLOGIES,LLC $54,000.00 AdministrativeServices Blanket PO for Enabling Teams Voice MSPA1/1/26 - 12/31/26 OMNIA Contract #R200803, in Accordance with Ordinance OCSAN-61 Section 2.03 (B) CooperativePurchasesEPLUSTECHNOLOGY,INC.$58,978.84 AdministrativeServices Veeam Data Platform Advanced UniversalSubscription and License 8/10/25 - 8/9/26Informal Bid 140980-ORFLO-SERVICES,INC.$147,187.31 Operations &Maintenance Evaluation and Teardown of Hidrostal PumpMSP # 1 at BitterPoint Pump Station SoleSource Justification 2887 Reason: UniqueProduct/ServiceFLUKE ELECTRONICS CORPORATION $84,078.50 Operations & Maintenance Purchase of Two (2) Fluke Rotalign Touch Expert Kits and All Bracket Sets Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/2021, Item 20 (B) GARDNER DENVER NASH LLC $55,452.74 Administrative Services Stock Item Purchase of one (1) ADOO Bare Blower Board Approved OEM Sole Source List M.O. 9/23/20, Item 12 (B) INNOVATIVE ENGINEERING AND MAINTENANCE $140,000.00 Operations & Maintenance Convenience Blanket PO for Urgent Operational Support at Plant 1 and 2 9/1/25 - 8/31/27 GM Article 2, Section 2.2 (b) (1) JAMISON ENGINEERING CONTRACTORS, INC. $85,000.00 Operations & Maintenance Service PO for Major Repairs at Primary Clarifiers P & Q at Plant 2 Informal Bid 141296-OR JAMISON ENGINEERING CONTRACTORS, INC. $140,000.00 Operations & Maintenance Convenience Blanket for Urgent Operational Support at all OC San Facilities 9/1/25 - 8/31/27 GM Article 2, Section 2.2 (b) (1) MH3 CORPORATION $60,000.00 Operations & Maintenance Blanket PO for Collecting and Analyzing Odor Samples Board Approved OEM Sole Source List M.O. 10/25/23, Item 9 (B) MOUSE GRAPHICS $98,000.00 Administrative Services Blanket PO for Graphic Services and Signage for HQ, Plant 1, Plant 2 and Pump Stations 10/1/25 - 9/30/26 GM Article 2, Section 2.2 (b) (1) OVIVO USA, LLC $74,400.00 Operations & Maintenance Service PO for Replacement J and A Jeta Drive Head and Rebuild Kit for Refurbishment of Existing Jeta Drive Head Sole Source Justification 2832 Reason: OEM Equipment/Part/Service OVIVO USA, LLC $147,933.00 Operations & Maintenance Purchase of One (1) Spare Drive Unit for Primary Clarifiers F and G at Plant 2 Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 2/26/2025, Item 12 (B) POWERFLO PRODUCTS INC $53,733.84 Operations & Maintenance Service PO to disassemble, clean, Inspect, and RebuildWSSP Pump Informal Bid 140803-OR PUTZMEISTER AMERICA INC $90,000.00 Operations & Maintenance Blanket PO to Conduct Annual Services on the Putzmeister HPUs, Augers, and Support Equipment at Plant 2 6/1/25 - 5/31/26 Board Approved OEM Sole Source List M.O. 5/27/20, Item 14 (B) QUINN POWER SYSTEMS $57,223.50 Operations & Maintenance Service PO for PB-C Generator 1 Radiator Overhaul Sourcewell Contract 092222-CAT, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases REAL TIME NETWORKS INC. $59,061.00 Administrative Services Purchase of one (1) KTA-8 System with 112 Positions and One (1) KTA-4 System with 56 Key Positions Sourcewell Contract 110923- DM, in Accordance with Ordinance OC SAN- 61 Section 2.03 (B) Cooperative Purchases REPUBLIC SERVICES, INC. $90,000.00 Administrative Services Blanket PO for Trash and Recycling Services at Plant 1, Plant 2, and Headquarters Sole Source Justification 2878 Reason: Unique Product/Service SDT NORTH AMERICA INC $100,908.75 Operations & Maintenance Purchase of One (1) SDT 340 System w/ UAS3 Including all Accessories Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/21, Item 20 (B) SGS US WEST COAST LLC $128,800.00 Operations & Maintenance Service PO for Inspection of 78-Inch and 120-Inch Ocean Outfall Pipelines Specification No. CS-2025-686BD TOSHIBA BUSINESS SOLUTIONS (USA) INC $70,000.00 Administrative Services Blanket PO for Toshiba Parts, Labor and Toner 8/1/25 - 7/31/26 NASPO Master Contract # 188037, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases VWR SCIENTIFIC $75,927.89 Environmental Services Purchase of (1) SeNSe2 Hardware and Accessories NASPO Master Agreement MA2024005, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases WATERLINE TECHNOLOGIES INC $90,000.00 Engineering Blanket PO for the Purchase of Sodium Hypochlorite Solution-Bleach (NaOCI) (Tote Deliveries) for Plant 1 and Plant 2 10/1/25 - 9/30/26 Informal Bid 140366-OR WESTERN EPG PRODUCTS, INC. $128,816.00 Administrative Services Stock Item Purchase of Forty-Eight (48) SCR Catalyst Replacement and Sixteen (16) Oxidation Catalyst Replacements Board Approved OEM Sole Source List M.O. 8/28/19, Item 3(B) and M.O. 5/23/18, Item 12 (B) WINDSONG PRODUCTIONS, LLC $148,863.00 Communications Blanket PO for Video Production Services Specification No. CS-2025-664BD Orange County Sanitation District Printed on 11/4/2025Page 4 of 6 powered by Legistar™ File #:2025-4584 Agenda Date:11/12/2025 Agenda Item No:7. Vendor Name Amount Department Description/DiscussionA GOOD SIGN &GRAPHICS, CO.$75,000.00 AdministrativeServices Convenience Blanket PO for Modificationsand Updating of Signage 9/1/25 - 8/31/26GM Article 2, Section 2.2 (b) (1) AIRGAS USA, LLC $140,000.00 Operations &Maintenance Convenience Blanket PO for MiscellaneousSigns, Welding Supplies, and the Repair andInspection of Welding Equipment 7/1/25 -6/30/27 GM Article 2, Section 2.2 (b) (1)ALCOA TRAFFICCONTROL, INC.$140,000.00 Operations &Maintenance Convenience Blanket PO for On-Call TrafficSetup and Support to Outside DivisionsWithin OC San 9/22/25 - 9/21/26 GM Article2, Section 2.2 (b) (1)AWARDCO, INC.$57,700.00 Human Resources Blanket PO for Safety Incentives, ServiceAwards, and Core Awards Sole SourceJustification 2867 Reason: UniqueProduct/ServiceBAY CITYINDUSTRIALSUPPLY $59,544.21 Operations &Maintenance Purchase of One (1) Duall Club-4450Impeller Informal Bid 140797-ORBRAND SCAFFOLDSERVICES INC $51,063.22 Operations &Maintenance Service PO for Engine 5 Catalyst InsulationRemoval and Installation and ScaffoldingServices at Plant 2 Informal Bid 140764-ORCALLAN LLC $75,000.00 AdministrativeServices Blanket PO for Investment AdvisoryServices, Including On-Going InvestmentPerformance Monitoring 10/1/25 - 9/30/28 w/Two Optional Two-Year Renewal PeriodsInformal Bid 139736-ORCARAHSOFTTECHNOLOGYCORPORATION$149,666.80 AdministrativeServices ServiceNow Software Implementation forEasement Disposition NASPO MasterContract # AR2472, in Accordance withOrdinance OC SAN-61 Section 2.03 (B)Cooperative PurchasesCENTRE FORORGANIZATIONEFFECTIVENESS $74,415.00 Human Resources Blanket PO for One (1) On-Site Seven-DayLeadership Academy training Program forEMT and Managers Sole SourceJustification 2892 Reason: HumanResources - TrainingCORE & MAIN LP $98,852.45 EnvironmentalServices Purchase of One (1) Hach AS950 PortableSampler w/ Compact Base and One (1)Hach AS950 All Weather RefrigeratedSampler Specification No. E-2025-691CORITYSOFTWARE, INC.$83,122.56 AdministrativeServices Annual Renewal for Cority SoftwareSubscription 9/24/25 - 9/23/26 GSA Contract# GS-35F-0032U in Accordance withOrdinance OC SAN-61 Section 2.03 (B)Cooperative PurchasesCREATIVE AIRMECHANICALSERVICES, LLC $96,264.00 AdministrativeServices Service PO to Correct Ductwork Plenum toProper Clearance at Plant 2 CenGen TIPS-USA Cooperative Contract # 25010501, inAccordance with Ordinance OC SAN-61Section 2.03 (B) Cooperative PurchasesCS-AMSCO $53,132.00 AdministrativeServices Stock Item Purchase of Six (6) DeZURIKEccentric Plug Valves Board Approved OEMSole Source List M.O. 12/14/16, Item 12 (B)DEMARIAELECTRIC MOTORSERVICES, INC.$142,733.34 Operations &Maintenance Service PO for the Repair of the 1500hpMotor that Drives Blower #4 Sole SourceJustification 2886 Reason: UniqueProduct/ServiceDIVERSIFIEDTHERMALSERVICES, INC.$60,000.00 AdministrativeServices Convenience Blanket PO for HVAC SystemRepairs on an As-Needed Basis at Plant 1,Plant 2 and HQ 10/21/25 - 10/21/26 GMArticle 2, Section 2.2 (b) (1)DXPENTERPRISES,INC.$81,204.86 AdministrativeServices Stock Item Purchase of Two (2) SeepexRotors and Two (2) Seepex Stators BoardApproved OEM Sole Source List M.O.12/14/16, Item 12 (B)EGROUPENABLINGTECHNOLOGIES,LLC $54,000.00 AdministrativeServices Blanket PO for Enabling Teams Voice MSPA1/1/26 - 12/31/26 OMNIA Contract #R200803, in Accordance with Ordinance OCSAN-61 Section 2.03 (B) CooperativePurchasesEPLUSTECHNOLOGY,INC.$58,978.84 AdministrativeServices Veeam Data Platform Advanced UniversalSubscription and License 8/10/25 - 8/9/26Informal Bid 140980-ORFLO-SERVICES,INC.$147,187.31 Operations &Maintenance Evaluation and Teardown of Hidrostal PumpMSP # 1 at BitterPoint Pump Station SoleSource Justification 2887 Reason: UniqueProduct/ServiceFLUKEELECTRONICSCORPORATION$84,078.50 Operations &Maintenance Purchase of Two (2) Fluke Rotalign TouchExpert Kits and All Bracket Sets ApprovedCORF Budget FY 25/26 Board ApprovedOEM Sole Source List M.O. 5/26/2021, Item20 (B)GARDNERDENVER NASHLLC $55,452.74 AdministrativeServices Stock Item Purchase of one (1) ADOO BareBlowerBoard Approved OEM Sole SourceList M.O. 9/23/20, Item 12 (B)INNOVATIVEENGINEERINGANDMAINTENANCE $140,000.00 Operations &Maintenance Convenience Blanket PO for UrgentOperational Support at Plant 1 and 2 9/1/25 -8/31/27 GM Article 2, Section 2.2 (b) (1)JAMISONENGINEERINGCONTRACTORS,INC.$85,000.00 Operations &Maintenance Service PO for Major Repairs at PrimaryClarifiers P & Q at Plant 2 Informal Bid141296-ORJAMISONENGINEERINGCONTRACTORS,INC.$140,000.00 Operations &Maintenance Convenience Blanket for Urgent OperationalSupport at all OC San Facilities 9/1/25 -8/31/27 GM Article 2, Section 2.2 (b) (1)MH3CORPORATION $60,000.00 Operations &Maintenance Blanket PO for Collecting and AnalyzingOdor Samples Board Approved OEM SoleSource List M.O. 10/25/23, Item 9 (B)MOUSEGRAPHICS $98,000.00 AdministrativeServices Blanket PO for Graphic Services andSignage for HQ, Plant 1, Plant 2 and PumpStations 10/1/25 - 9/30/26 GM Article 2,Section 2.2 (b) (1)OVIVO USA, LLC $74,400.00 Operations &Maintenance Service PO for Replacement J and A JetaDrive Head and Rebuild Kit forRefurbishment of Existing Jeta Drive HeadSole Source Justification 2832 Reason:OEM Equipment/Part/ServiceOVIVO USA, LLC $147,933.00 Operations &Maintenance Purchase of One (1) Spare Drive Unit forPrimary Clarifiers F and G at Plant 2Approved CORF Budget FY 25/26 BoardApproved OEM Sole Source List M.O.2/26/2025, Item 12 (B)POWERFLOPRODUCTS INC $53,733.84 Operations &Maintenance Service PO to disassemble, clean, Inspect,and RebuildWSSP Pump Informal Bid140803-ORPUTZMEISTERAMERICA INC $90,000.00 Operations &Maintenance Blanket PO to Conduct Annual Services onthe Putzmeister HPUs, Augers, and SupportEquipment at Plant 2 6/1/25 - 5/31/26 BoardApproved OEM Sole Source List M.O.5/27/20, Item 14 (B)QUINN POWERSYSTEMS $57,223.50 Operations &Maintenance Service PO for PB-C Generator 1 RadiatorOverhaul Sourcewell Contract 092222-CAT,in Accordance with Ordinance OC SAN-61Section 2.03 (B) Cooperative PurchasesREAL TIME NETWORKS INC. $59,061.00 Administrative Services Purchase of one (1) KTA-8 System with 112 Positions and One (1) KTA-4 System with 56 Key Positions Sourcewell Contract 110923- DM, in Accordance with Ordinance OC SAN- 61 Section 2.03 (B) Cooperative Purchases REPUBLIC SERVICES, INC. $90,000.00 Administrative Services Blanket PO for Trash and Recycling Services at Plant 1, Plant 2, and Headquarters Sole Source Justification 2878 Reason: Unique Product/Service SDT NORTH AMERICA INC $100,908.75 Operations & Maintenance Purchase of One (1) SDT 340 System w/ UAS3 Including all Accessories Approved CORF Budget FY 25/26 Board Approved OEM Sole Source List M.O. 5/26/21, Item 20 (B) SGS US WEST COAST LLC $128,800.00 Operations & Maintenance Service PO for Inspection of 78-Inch and 120-Inch Ocean Outfall Pipelines Specification No. CS-2025-686BD TOSHIBA BUSINESS SOLUTIONS (USA) INC $70,000.00 Administrative Services Blanket PO for Toshiba Parts, Labor and Toner 8/1/25 - 7/31/26 NASPO Master Contract # 188037, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases VWR SCIENTIFIC $75,927.89 Environmental Services Purchase of (1) SeNSe2 Hardware and Accessories NASPO Master Agreement MA2024005, in Accordance with Ordinance OC SAN-61 Section 2.03 (B) Cooperative Purchases WATERLINE TECHNOLOGIES INC $90,000.00 Engineering Blanket PO for the Purchase of Sodium Hypochlorite Solution-Bleach (NaOCI) (Tote Deliveries) for Plant 1 and Plant 2 10/1/25 - 9/30/26 Informal Bid 140366-OR WESTERN EPG PRODUCTS, INC. $128,816.00 Administrative Services Stock Item Purchase of Forty-Eight (48) SCR Catalyst Replacement and Sixteen (16) Oxidation Catalyst Replacements Board Approved OEM Sole Source List M.O. 8/28/19, Item 3(B) and M.O. 5/23/18, Item 12 (B) WINDSONG PRODUCTIONS, LLC $148,863.00 Communications Blanket PO for Video Production Services Specification No. CS-2025-664BD Additionally,in accordance with Board purchasing policies,Ordinance No.OC SAN-61,the General Manager has authority to approve and execute maintenance and repair Services Task Orders between $50,000 and $500,000.Below is a summary of General Manager approved maintenance and repair Services Task Orders,in amounts exceeding $50,000,for the first quarter of fiscal year 2025-26: Vendor Name Amount Department Description/Discussion BAKER ELECTRIC & RENEWABLES LLC $51,714.20 Operations & Maintenance Turbine Generator Battery Charger Replacement at Plant 1 Specification No. TOB- 2025-696 of Master Service Contract S-2024- 1447BD-9 BIG SKY ELECTRIC, INC. $299,750.00 Operations & Maintenance Steve Anderson Lift Station Variable Frequency Drive Replacement Specification No. TOB-2025- 688 of Master Service Contract S-2024-1447BD- 10 JAMISON ENGINEERING CONTRACTORS, INC. $285,000.00 Operations & Maintenance Primary Clarifier N Drive Replacement at Plant No. 2 Specification No. TOB-2025-694 of Master Service Contract S-2024-1447BD-3 LEED ELECTRIC, INC. $266,210.00 Operations & Maintenance Power Building D Automatic Transfer Switch Replacement at Plant 2 Specification No. TOB- 2025-697 of Master Service Contract S-2025- 1447BD-11 VICON ENTERPRISE INC $200,000.00 Operations & Maintenance Trickling Filter Clarifier B Repair at Plant No. 2 Specification No. TOB-2025-699 of Master Service Contract S-2024-1447BD-7 Orange County Sanitation District Printed on 11/4/2025Page 5 of 6 powered by Legistar™ File #:2025-4584 Agenda Date:11/12/2025 Agenda Item No:7. Vendor Name Amount Department Description/Discussion BAKER ELECTRIC & RENEWABLES LLC $51,714.20 Operations & Maintenance Turbine Generator Battery Charger Replacement at Plant 1 Specification No. TOB- 2025-696 of Master Service Contract S-2024- 1447BD-9 BIG SKY ELECTRIC, INC. $299,750.00 Operations & Maintenance Steve Anderson Lift Station Variable Frequency Drive Replacement Specification No. TOB-2025- 688 of Master Service Contract S-2024-1447BD- 10 JAMISON ENGINEERING CONTRACTORS, INC. $285,000.00 Operations & Maintenance Primary Clarifier N Drive Replacement at Plant No. 2 Specification No. TOB-2025-694 of Master Service Contract S-2024-1447BD-3 LEED ELECTRIC, INC. $266,210.00 Operations & Maintenance Power Building D Automatic Transfer Switch Replacement at Plant 2 Specification No. TOB- 2025-697 of Master Service Contract S-2025- 1447BD-11 VICON ENTERPRISE INC $200,000.00 Operations & Maintenance Trickling Filter Clarifier B Repair at Plant No. 2 Specification No. TOB-2025-699 of Master Service Contract S-2024-1447BD-7 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 Printed on 11/4/2025Page 6 of 6 powered by Legistar™ ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4581 Agenda Date:11/12/2025 Agenda Item No:8. FROM:Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF OCTOBER 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Legislative Affairs Update for the month of October 2025. BACKGROUND The Orange County Sanitation District’s (OC San) legislative affairs program includes advocating for OC San’s legislative interests, sponsoring legislation (where appropriate), and seeking local, state, and federal funding for projects and programs. RELEVANT STANDARDS ·Maintain influential legislative advocacy and a public outreach program ·Build brand, trust, and support with policy makers and community leaders ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Without a strong advocacy program, elected officials may not be aware of OC San’s mission, programs, and projects or how they could be impacted by proposed legislation. PROPOSED SOLUTION Continue to work with Local, State, and Federal officials to advocate for OC San’s interests and help identify, create and monitor legislation and grants opportunities that would benefit OC San, the wastewater industry, and the community. To strengthen relationship building efforts, OC San will continue to engage elected officials through facility tours, one-on-one meetings, and outreach trips to Washington D.C. and Sacramento. Orange County Sanitation District Printed on 11/4/2025Page 1 of 2 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4581 Agenda Date:11/12/2025 Agenda Item No:8. RAMIFICATIONS OF NOT TAKING ACTION If OC San does not actively engage with Local,State,and Federal elected officials,legislation could be enacted that negatively impacts OC San and the wastewater industry.Additionally,lack of engagement may result in missed funding opportunities. ADDITIONAL INFORMATION Activities for October: ·The State of OC San was held on Friday,October 17 at OC San Headquarters.The in-person and virtual event welcomed local,state,and federal dignitaries and provided updates on OC San’s accomplishments and future direction.The event featured guest speaker Joaquin Esquivel, Chair of the State Water Resources Control Board, and drew nearly 150 attendees. ·Staff is working with the Orange County Water District to develop supporting language for a potential bill to allow bottling of Groundwater Replenishment System water,similar to Assembly Bill 2022 (Gordon).In mid-November the WateReuse Committee is expected to discuss sponsoring this bill.Following WateReuse’s decision,OC San will report back to the Administration Committee and outline the next steps. Activities in November: ·The final Legislative and Regulatory plan has been developed based on feedback received from our resident experts,industry partners,and the Board of Directors over the last several months.The plan will go before the November Administration Committee and then the Board of Directors for adoption. CEQA N/A FINANCIAL CONSIDERATIONS All items mentioned are included in OC San’s FY 2025-26 adopted Budget. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Federal Legislative Update ·Federal Matrix ·State Legislative Update ·State Matrix ·Local Legislative Update ·Presentation Orange County Sanitation District Printed on 11/4/2025Page 2 of 2 powered by Legistar™ TO: Orange County Sanitation District FROM: Eric Sapirstein Sarah Sapirstein DATE: October 24, 2025 SUBJECT: Washington Update The federal government has been shut down since October 1 due to a Senate impasse over expiring health insurance premiums. Federal agencies are operating under contingency plans, non-essential employees have been furloughed, and Congress has postponed formal legislative activities. With no resolution in sight, the shutdown may surpass the 34-day record set in 2019.The following summarizes the status of these and other policy issues of interest to OC San. Government Shutdown Closes Out Third Week The government shutdown resulted from Congress failing to pass a Continuing Resolution (CR) by the October 1 deadline, due to a dispute over extending certain Affordable Care Act tax credits. Democrats insist the extension be included to support the CR, while Republicans favor a “clean CR” and addressing tax credits later. With narrow Senate margins, Republicans would need at least seven Democratic votes to overcome a filibuster. Importance of the Government Shutdown The government shutdown has disrupted operations across federal agencies, with mass furloughs as the most visible impact. At the U.S. Environmental Protection Agency, 89 percent of staff are furloughed under its contingency plan. This shutdown is also marked by the White House’s announcement of additional reductions in force, which were temporarily blocked by a California federal judge following legal challenges from employee unions. The shutdown has delayed House action on key policy priorities, including Floor debate and votes on H.R. 3898 (PERMIT Act) and the planned mark-up of the State Revolving Loan Fund/Clean Water Act Reauthorization. -=-=---=--= -----. -.. --~ • -..... ~ --------------I ' 1,1 ....... --------------.a..J.L ,...., ~ OC San Federal Legislative Update October 2025 FEDERAL - 119TH CONGRESS S.1092 WIPPES Act High Priority Support Summary: S.1092 would direct the Federal Trade Commission to estabilsh federal "Do Not Flush" labeling requirements for nonflushable wet wipes packaging. The labeling requirements would be enacted one year after the bill's enactment. The bill mirrors California's state labeling law and is supported by clean water, industry, environmental advocates, and civil engineer stakeholders. House companion legislation is HR 2269. 03/24/2025Introduced: Sen. Jeff Merkley ORSponsor: Latest Actions: 09/19/2025 - Placed on Senate Legislative Calendar under General Orders. Calendar No. 166. 09/19/2025 - Committee on Commerce, Science, and Transportation. Reported by Senator Cruz with an amendment in the n... 05/21/2025 - Committee on Commerce, Science, and Transportation. Ordered to be reported with an amendment in the nat... Senate Commerce, Science and Transportation Committees: Committee S. 1092 provides a source control solution to the problem of the flushing of Why it matters: nonflushable wipes that will reduce costs associated with fixing damaged treatment infrastructure for wastewater utilities. The labeling requirements compliment existing "Do Not Flush" labeling state law. Senator Alex Padilla is an original co-sponsor. OC San continues to publicly support the effort and has sent support letters to the delegation this Congress. Outlook: S. 1092 has high potential to be passed by the Senate this Congress based on the Committee on Commerce, Science and Transportation's bipartisan markup of the bill earlier this Spring. The committee's action raises the possibility for S. 1092 will be considered on the Floor under Unanimous Consent FEDERAL - 119TH CONGRESS 1 ~SAN ORANGE COUNTY SANITATION DISTRICT • • H.R. 2269 WIPPES Act High Priority Support Summary: H.R. 2269 would direct the Federal Trade Commission to estabilsh federal "Do Not Flush" labeling requirements for nonflushable wet wipes packaging. The labeling requirements would be enacted one year after the bill's enactment. The bill mirrors California's state labeling law and is supported by clean water, industry, environmental advocates, and civil engineer stakeholders. Senate companion legislation is S. 1092. 03/21/2025Introduced: Rep. Lisa McClain MI-09Sponsor: Latest Actions: 06/24/2025 - Received in the Senate. 06/23/2025 - Motion to reconsider laid on the table Agreed to without objection. 06/23/2025 - On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H2852-2853) House Energy and Commerce CommitteeCommittees: H.R. 2269 provides a source control solution to the problem of the flushing Why it matters: of nonflushable wipes that will reduce costs associated with fixing damaged treatment infrastructure for wastewater utilities. The labeling requirements compliment existing "Do Not Flush" labeling state law. Rep. Lou Correa is a co-sponsor. OC San continues to publicly support the effort and has sent support letters to the delegation this Congress. Outlook: H.R. 2269 has high chances of passing the House this session. The legislation has been scheduled to be voted on under suspension on the House Floor the week of June 23. The Committee on Energy and Commerce's bipartisan markup of the bill also infer a bipartisan vote on the Floor. 2 • • H.R. 3898 represents a comprehensive Clean Water Act permitting reform Why It Matters: bill. Key provisions: Outlook. The House is expected to consider H.R. 3898 this Fall. Passage is highly likely as many of the bill's provisions passed the House during the last Congress. This included ten year permits. FEDERAL - 119TH CONGRESS H.R. 2093 To amend the Federal Water Pollution Control Act with respect to permitting terms, and for other purposes. High Priority Support Summary: H.R. 2093 would amend the Clean Water Act's permitting provisions to allow for delegated states or USEPA to issue ten year National Permit Discharge Eliminate System (NPDES) permits. The bill, if enacted, would extend current terms from five years. 03/14/2025Introduced: Rep. Ken Calvert CA-41Sponsor: Latest Actions: 03/14/2025 - Referred to the Subcommittee on Water Resources and Environment. FEDERAL - 119TH CONGRESS H.R. 3898 PERMIT Act No Priority No Stance The PERMIT Act amends the Federal Water AI Summary: Pollution Control Act to streamline water quality standards, reduce regulatory burdens, clarify permitting terms, and improve federalism and efficiency in clean water permitting. 06/11/2025Introduced: Rep. Mike Collins GA-10Sponsor: Latest Actions: 07/02/2025 - Placed on the Union Calendar, Calendar No. 145. 07/02/2025 - Reported (Amended) by the Committee on Transportation and Infrastructure. H. Rept. 119-180. 07/02/2025 - POLITICO Pro - Republicans on the House Transportation and Infrastructure Committee Wednesday advanced a sweeping pack... House Transportation and Infrastructure Committee, Committees: House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee mandated 10 year NPDES permits codification of exemption from WOTUS definition for wastewater and water storage facilities expedited review and approval of section 404 permit applications ten year general permits for dredge and fill activities with requirement for 2 year advanced notification if permit not to be renewed water quality certification reviews limited to project impacts on water quality 3 0 • • • • • • 0 • 03/14/2025 - Referred to the House Committee on Transportation and Infrastructure. 03/14/2025 - Introduced in House House Transportation and Infrastructure Committee, Committees: House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee H.R. 2093 amends the NPDES permit term to align with the current project Why it matters: construction timeline realities for water utilities and help reduce costs associated with permit renewals for both utilities and state regulators. H.R. 2093 provides this while preserving existing permit reopener provisions to ensure environmental protections are upheld. Outlook: H.R. 2093 has the potential to advance this Congress. Committee majority staff support the bill's policy intent and has expressed the desire to pursue last year's Creating Confidence Clean Water Permitting Act (HR 7023)again this Congress, which included H. R. 2093's permit extension language. H.R. 7023 passed the House in the 118th Congress. The legislation would provide important protection to water and wastewater Why It Matters: agencies against third party litigation seeking to secure cost contributions for cleanups that involve PFAS contamination. Absent an explicit liability protection provision such agencies would be exposed to liability simply because an agency treated water and wastewater that contained PFAS chemicals and disposed of residuals and biosolids. FEDERAL - 119TH CONGRESS H.R. 1267 Water Systems PFAS Liability Protection Act High Priority Support The Water Systems PFAS Liability Protection Act AI Summary: exempts water and wastewater treatment facilities from CERCLA liability for releases of certain perfluoroalkyl and polyfluoroalkyl substances, provided they comply with applicable laws and regulations. 02/12/2025Introduced: Rep. Marie Gluesenkamp Perez WA-03Sponsor: Latest Actions: 02/12/2025 - Referred to the Subcommittee on Water Resources and Environment. 02/12/2025 - Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation an... 02/12/2025 - Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation an... House Energy and Commerce Committee, House Committees: Transportation and Infrastructure Committee, House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee 4 • • Outlook: H.R. 1267 represents a placeholder bill to address the water sector's concerns over the potential liability created by USEPA's designation of PFAS as a hazardous substance under CERCLA. Both the House and Senate committees with jurisdiction over CERCLA have expressed interest in addressing PFAS liability. However, any significant legislative activity is expected to await USEPA's recommendations on how to address passive receivers liability created by the PFAS designation. FEDERAL - 119TH CONGRESS H.R. 1265 To amend the Save Our Seas 2.0 Act to expand eligibility for certain wastewater infrastructure grants, and for other purposes. No Priority No Stance Summary: H.R. 1265 aims to expand eligibility for certain wastewater infrastructure grants under the Save Our Seas 2.0 Act12. This expansion would allow communities and projects to qualify for federal funding, which can be used to improve and modernize wastewater treatment facilities. By increasing access to these grants, the bill seeks to enhance the capacity of wastewater management systems to handle pollutants, reduce environmental impacts, and support public health. This could lead to more efficient and effective wastewater treatment processes, ultimately contributing to cleaner waterways and a healthier environment. 02/12/2025Introduced: Del. Eleanor Holmes Norton DC-At LargeSponsor: Latest Actions: 04/01/2025 - Referred to the Subcommittee on Water Resources and Environment. 02/12/2025 - Referred to the House Committee on Transportation and Infrastructure. 02/12/2025 - Sponsor introductory remarks on measure. (CR E120) House Transportation and Infrastructure Committee, Committees: House Transportation and Infrastructure Committee Coast Guard and Maritime Transportation Subcommittee, House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee FEDERAL - 119TH CONGRESS H.R. 1285 Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025 No Priority No Stance Summary: H.R. 1285 would amend the Water Infrastructure Finance and Innovation Act of 2014. The key points: Payment and Performance Security Requirements: The bill establishes new requirements for payment and performance security for projects funded under the act. Project Funding: Ensure that projects financed through the Water Infrastructure Finance and Innovation Act have adequate financial safeguards.H.R. 2093 would amend the Clean Water Act's permitting provisions to allow for delegated states or USEPA to issue ten year National Permit Discharge Eliminate System (NPDES) permits. The bill, if enacted, would extend current terms from five years 02/13/2025Introduced: Rep. Mike Bost IL-12Sponsor: 5 0 0 0 0 Latest Actions: 02/13/2025 - Referred to the Subcommittee on Water Resources and Environment. 02/13/2025 - Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ene... 02/13/2025 - Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ene... House Energy and Commerce Committee, House Committees: Transportation and Infrastructure Committee, House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee FEDERAL - 119TH CONGRESS H.R. 2344 Water ISAC Threat Protection Act No Priority No Stance Summary: Would establish a program to enhance the preparedness and resilience of drinking water and wastewater systems against various threats. The bill's primary focus is on safeguarding these critical utilities from risks such as natural disasters, cyberattacks, and other vulnerabilities that could disrupt essential water services. 03/25/2025Introduced: Rep. Jan Schakowsky IL-09Sponsor: Latest Actions: 03/25/2025 - Referred to the Subcommittee on Water Resources and Environment. 03/25/2025 - Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ene... 03/25/2025 - Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ene... House Energy and Commerce Committee, House Committees: Transportation and Infrastructure Committee, House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee FEDERAL - 119TH CONGRESS S.857 Water Conservation Rebate Tax Parity Act No Priority No Stance Summary: Amends federal tax law so that homeowners would not need to pay income tax when they receive rebates from water utilities for water conservation and water runoff management improvements. S. 857. 03/05/2025Introduced: Sen. John Curtis UTSponsor: Latest Actions: 03/05/2025 - Read twice and referred to the Committee on Finance. 03/05/2025 - Introduced in Senate 6 0 0 0 0 Senate Finance CommitteeCommittees: FEDERAL - 119TH CONGRESS S.1118 Water Intelligence, Security, and Cyber Threat Protection Act of 2025 No Priority No Stance Summary: S. 1118 would provide funding and additional access for clean water and wastewater utilities to become members of the Water Information Sharing and Analysis Center (WaterISAC). The WaterISAC is a critical source of information and best practices for water systems to protect against, mitigate, and respond to threats. House Companion bill H.R. 2344. Endorsed by American Water Works Association, Association of Metropolitan Water Agencies, National Association of Clean Water Agencies, National Association of Water Companies, and Water Environment Federation. 03/25/2025Introduced: Sen. Ed Markey MASponsor: Latest Actions: 03/25/2025 - Read twice and referred to the Committee on Environment and Public Works. 03/25/2025 - Introduced in Senate Senate Environment and Public Works CommitteeCommittees: FEDERAL - 119TH CONGRESS H.R. 3184 PFAS Alternatives Act No Priority No Stance The bill establishes a research and training AI Summary: program to develop and promote PFAS-free turnout gear for firefighters, supporting innovation in firefighter safety through grants and partnerships. 05/05/2025Introduced: Rep. Debbie Dingell MI-06Sponsor: Latest Actions: 05/06/2025 - Referred to the Subcommittee on Water Resources and Environment. 05/05/2025 - Referred to the Committee on Science, Space, and Technology, and in addition to the Committee on Transp... 05/05/2025 - Referred to the Committee on Science, Space, and Technology, and in addition to the Committee on Transp... House Science, Space and Technology Committee, Committees: House Transportation and Infrastructure Committee, House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee 7 0 0 0 0 8 1 M E M O R A N D U M To: Orange County Sanitation District From: Townsend Public Affairs Date: October 24, 2025 Subject: October Legislative Monthly Report STATE UPDATES With the Legislature on Interim Study Recess, activity has shifted back to lawmakers’ districts. Members are meeting with constituents, hosting local events, and preparing for the next legislative session, which begins January 5, 2026. Over the past month, the Governor Newsom took action on a wide range of legislation, signing numerous bills into law while vetoing others. Overall, during the 2025 legislative session, 917 measures reached the Governor’s Desk; with 794 measures signed into law, and 123 measures vetoed, for a veto rate of 13.4 percent. Newly enacted legislation spans a broad set of priorities, including elections, public transparency, housing, energy efficiency, water planning, and tax policy. Collectively, these measures underscore the Administration’s emphasis on climate resilience, infrastructure investment, and government accountability. At the same time, the Governor’s vetoes signal fiscal caution and areas of policy divergence with the Legislature, as well as a significant focus on affordability for Californians. Priority Legislation – Results SB 682 (Allen) – Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances (OC San Supports) SB 682 would prohibit a person from distributing, selling, or offering for sale cookware, a cleaning product, dental floss, juvenile product, food packaging, or ski wax, as provided, that contains intentionally added perfluoroalkyl and polyfluoroalkyl substances. SB 682 was vetoed by the Governor. In his veto message, the Governor cited drastic changes to the cookware industry and the bills impact to cookware affordability. T -WNSEND PUBLIC AFFAIRS EST TPA 1998 2 SB 317 (Hurtado) – Wastewater surveillance (OC San Supports) SB 317 would permanently codify the Wastewater Surveillance program in California. The bill mandates the State Department of Public Health to manage the Cal-SuWers network, allowing voluntary participation from local health departments and wastewater facilities, to test wastewater for public health indicators. Although no funding has been provided for the Wastewater Surveillance program, codification was a necessary first step toward bringing the program back eventually. SB 317 was vetoed by the Governor. In his veto message, the Governor cited ongoing general fund costs associated with keeping the program alive despite a balanced budget signed into law. AB 370 (Carrillo) – California Public Records Act Requests: cyberattacks (OC San Supports) AB 370 adds “cyberattack” to a list of unusual circumstances that contribute to a state of emergency that impacts a public agencies ability to respond to public records requests. Specifically, this bill would give local officials additional time to respond to public records requests if they are currently experiencing a cyberattack that affects staffing or facilities issues. AB 370 was signed into law by the Governor and will take effect on January 1, 2026. AB 339 (Ortega) – Local public employee organizations: notice requirements (OC San Opposes) AB 339 would require the governing body of a public agency like OC San to give recognized employee organizations no less than 45 days’ written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract to perform services that are within the scope of work of the job classifications represented by the recognized employee organization. AB 339 was signed into law by the Governor and will take effect on January 1, 2026. SB 707 (Durazo) – Open meetings: meeting and teleconference requirements (OC San Watch) SB 707 would make various changes to the Brown Act and recasts several provisions granting flexibility to local public agencies. Specifically, SB 707 would require OC San to provide two-way telephonic or video conferencing opportunities for the public to participate and provide public comment. This bill would also extend the flexibility provisions provided to board members of local public agencies to participate remotely in meetings with certain conditions. SB 707 would also require OC San to translate its public agendas into all languages spoken by at least 20 percent of the population who also speak English less than well. Finally, SB 707 would require OC San to provide a location close to the standard board meeting location for the public to post their own translated agendas. Most updates to the Brown Act under SB 707 will become effective on January 1, 2026, while those specifically applying to eligible legislative bodies will take effect on July 1, 2026. OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 60 Papan [D]Current law, commencing January 1, 2027, prohibits a person or entity from manufacturing, selling, delivering, holding, or offering for sale in commerce any cosmetic product that contains any of several specified intentionally added ingredients except under specified circumstances. This bill, the Musk Reduction Act, would expand that prohibition by adding musk ambrette, musk tibetene, musk moskene, and musk xylene to the list of banned ingredients. The bill would also, beginning January 1, 2027, prohibit the use of musk ketone in cosmetic products in excess of specified amounts, including 1.4% in fine fragrance products, and oral products, as defined. Signed into law Watch State Priorities: Source Control - Support legislation and/or regulations that restrict the non-essential use of microplastics and contaminants of emerging concern in any product that is disposed or has the potential to be introduced into the sanitary sewer system. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 70 Aguiar-Curry The California Integrated Waste Management Act of 1989 requires each city, county, and regional agency to develop a source reduction and recycling element of an integrated waste management plan. The act requires that element to include a 50% solid waste diversion requirement, as specified, and provides that up to 10% may be achieved through biomass conversion under certain conditions, with biomass conversion defined as the production of heat, fuels, or electricity by certain means from specified materials. One of the conditions for using biomass conversion to satisfy a portion of the solid waste diversion requirement is that pyrolysis not be included in the source reduction and recycling element. Pyrolysis is not defined for that purpose or for other purposes in the act. This bill would define pyrolysis as the thermal decomposition of material at elevated temperatures in the absence or near absence of oxygen. Signed into law Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC Proposed Legislation 2025 High Priority OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 259 Rubio [D]The Ralph M. Brown Act, requires, with specified exceptions, that all meetings of a legislative body, as defined, of a local agency be open and public and that all persons be permitted to attend and participate. Current law, until January 1, 2026, authorizes the legislative body of a local agency to use alternative teleconferencing if, during the teleconference meeting, at least a quorum of the members of the legislative body participates in person from a singular physical location clearly identified on the agenda that is open to the public and situated within the boundaries of the territory over which the local agency exercises jurisdiction, and the legislative body complies with prescribed requirements. Current law requires a member to satisfy specified requirements to participate in a meeting remotely pursuant to these alternative teleconferencing provisions, including that specified circumstances apply. Current law establishes limits on the number of meetings a member may participate in solely by teleconference from a remote location pursuant to these alternative teleconferencing provisions, including prohibiting such participation for more than 2 meetings per year if the legislative body regularly meets once per month or less. This bill would extend the alternative teleconferencing procedures until January 1, 2030. Two-Year Bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Support CASA - Support CSDA - Sponsor ACWA - Support AB 339 Ortega [D]The Meyers-Milias-Brown Act contains various provisions that govern collective bargaining of local represented employees and delegates jurisdiction to the Public Employment Relations Board to resolve disputes and enforce the statutory duties and rights of local public agency employers and employees. Current law requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations. Current law requires the governing body of a public agency, and boards and commissions designated by law or by the governing body, to give reasonable written notice, except in cases of emergency, as specified, to each recognized employee organization affected of any ordinance, rule, resolution, or regulation directly relating to matters within the scope of representation proposed to be adopted by the governing body or the designated boards and commissions. This bill would require the governing body of a public agency, and boards and commissions designated by law or by the governing body of a public agency, to give the recognized employee organization no less than 45 days’ written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract to perform services that are within the scope of work of the job classifications represented by the recognized employee organization, subject to certain exceptions. The bill would require the notice to include specified information, including the anticipated duration of the contract. Signed into law Oppose Legislative and Regulatory Policies: Labor Relations/Human Resources: Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. ACC-OC - NYC LOCC - Oppose CASA - Oppose CSDA - Oppose ACWA - Not Favor OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 340 Ahrens [D]Existing laws governing labor relations for public employees and employers, such as the Meyers-Milias-Brown Act and the Ralph C. Dills Act, prohibit employers from actions like imposing reprisals, discriminating, or interfering with employees' rights related to employee organizations. These laws also ensure that employee organizations are granted their legal rights. This bill would further restrict public employers by prohibiting them from questioning employees or their representatives about confidential communications related to organizational representation. It also prevents employers from forcing the disclosure of these communications to a third party. However, this prohibition does not apply during criminal investigations or when a public safety officer is being investigated under certain conditions. Two-year bill Watch Legislative and Regulatory Policies: Labor Relations/Human Resources: Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. ACC-OC - NYC LOCC - Oppose CASA - NYC CSDA - Oppose ACWA - NYC AB 370 Carrillo [D]This bill would revise the definition of unusual circumstances as it applies to a state of emergency to require the state of emergency, in addition to currently affecting the agency’s ability to timely respond to requests as described above, to also require the state of emergency to directly affect the agency’s ability to timely respond to requests as described above. By restricting the time period in which a local agency may respond to requests, thus increasing the duties of local officials, this bill would create a state- mandated local program. Current law requires each agency, within 10 days of a request for a copy of records, to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person of the determination and the reasons therefor. Current law authorizes that time limit to be extended by no more than 14 days under unusual circumstances, and defines “unusual circumstances” to include, among other things, the need to search for, collect, and appropriately examine records during a state of emergency when the state of emergency currently affects the agency’s ability to timely respond to requests due to staffing shortages or closure of facilities, as provided. Signed into law Support Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Support CASA - Support CSDA - Support ACWA - NYC AB 405 Addis [D]The State Air Resources Board must establish regulations by July 1, 2025, for major businesses (annual revenue above $1 billion) operating in California to disclose their greenhouse gas emissions. By 2026, they must report Scope 1 and 2 emissions, and by 2027, Scope 3 emissions as well. This bill, the Fashion Environmental Accountability Act of 2025, focuses on fashion sellers, requiring them to adhere to environmental due diligence by eliminating regulated chemicals in their products and setting greenhouse gas reduction targets. Beginning July 1, 2027, fashion sellers must annually submit an Environmental Due Diligence Report. By 2028, they can’t sell products with regulated chemicals above permitted levels. Non-compliance could lead to penalties or legal actions. Lastly, penalties collected will support environmental projects through a newly established fund, the Fashion Environmental Remediation Fund. Two-year bill Watch State Priorities: Source Control - Support legislation and/or regulations that restrict the non-essential use of microplastics and contaminants of emerging concern in any product that is disposed or has the potential to be introduced into the sanitary sewer system. ACC-OC - NYC LOCC - NYC CASA - Work with Author CSDA - NYC ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 430 Alanis [R]Current law provides that an emergency regulation adopted by the State Water Resources Control Board following a Governor’s proclamation of a state of emergency based on drought conditions, for which the board makes specified findings, may remain in effect for up to one year, as provided, and may be renewed if the board determines that specified conditions relating to precipitation are still in effect. This bill would require the board, within 180 days following a finding by the board that a nonfee emergency regulation is no longer necessary, as provided, to conduct a comprehensive economic study assessing the impacts of the regulation, as specified. Two-year bill Watch Legislative and Regulatory Policies: Water Quality and Supply: Support (generally) measures to increase water supply and improve water quality in the region, including drought relief legislations and regulations. ACC-OC - NYC LOCC - Watch CASA - Watch CSDA - Watch ACWA - NYC AB 538 Berman [D]Existing law mandates that the Labor Commissioner investigates violations by contractors or subcontractors related to public works projects, including adherence to prevailing wage laws. Contractors and subcontractors must maintain accurate payroll records, including personal details and wage information for each employee, and provide certified copies upon public request. Non-compliance is considered a misdemeanor. The bill requires that if an awarding body receives a records request but lacks the records, it must obtain them from the contractor and provide them to the requester. The Division of Labor Standards Enforcement can impose penalties if a contractor does not comply within 10 days. Signed into law Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Oppose CASA - Watch CSDA - Oppose ACWA - NYC AB 638 C. Rodriguez [D]Current law, the Stormwater Resource Planning Act, authorizes one or more public agencies to develop a stormwater resource plan that meets certain standards to address the capture of stormwater, as defined, and dry weather runoff, as defined. This bill would require the State Water Resources Control Board, by December 1, 2026, to develop recommendations for stormwater capture and use for the irrigation of urban public lands, as defined. The bill would require the recommendations to address, but not be limited to, opportunities for the use of captured stormwater for irrigation to offset the use of potable water, as specified, and recommendations for, among other things, pathogens and pathogen indicators and total suspended solids. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Watch CASA - NYC CSDA - Watch ACWA - NYC AB 643 Wilson [D]This bill would authorize a local jurisdiction to include organic material used as a beneficial agricultural amendment towards its recovered organic waste procurement target if the material is processed at a facility authorized by the department using specified approved technologies, and if the material is licensed for end use as an agricultural fertilizer by the Department of Food and Agriculture. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Watch CASA - Support in concept CSDA - Watch ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 647 M. Gonzalez [D]This bill would require a proposed housing development containing no more than 8 residential units that is located on a lot with an existing single-family home or is zoned for 8 or fewer residential units to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, among other requirements, that the proposed housing development dedicates at least one residential unit to deed-restricted affordable housing to households making at or below 80% of the area median income, as specified. The bill would prohibit a local agency from applying any development standard that will have the effect of physically precluding the construction of a housing development that meets those requirements, as specified, and from imposing on a housing development subject to these provisions any objective zoning standard or objective design standard that meets certain criteria, including imposing any requirement that applies to a project solely or partially on the basis that the housing development receives approval pursuant to these provisions. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Oppose CASA - NYC CSDA - NYC ACWA - NYC AB 794 Gabriel [D]The California Safe Drinking Water Act requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health. The state board’s duties include, but are not limited to, enforcing the federal Safe Drinking Water Act (federal act) and adopting and enforcing regulations. Current law authorizes the state board to adopt as an emergency regulation, a regulation that is not more stringent than, and is not materially different in substance and effect than, the requirements of a regulation promulgated under the federal act, with a specified exception. This bill would provide that the authority of the state board to adopt an emergency regulation pursuant to these provisions includes the authority to adopt requirements of a specified federal regulation that was in effect on January 19, 2025, regardless of whether the requirements were repealed or amended to be less stringent. The bill would prohibit an emergency regulation adopted pursuant to these provisions from implementing less stringent drinking water standards, as provided, and would authorize the regulation to include requirements that are more stringent than the requirements of the federal regulation. Currently in the Assembly Inactive File Watch State Priorities: Contaminants of Emerging Concern - Support legislation that will eliminate non- essential PFAS uses to reduce and mitigate PFAS in everyday consumer goods. ACC-OC - NYC LOCC - Oppose Unless Amended CASA - Oppose CSDA - Watch ACWA - Oppose Unless Amended AB 810 Irwin [D]Current law requires that a local agency that maintains an internet website for use by the public to ensure that the internet website uses a “.gov” top- level domain or a “.ca.gov” second-level domain no later than January 1, 2029. Current law requires that a local agency that maintains public email addresses to ensure that each email address provided to its employees uses a “.gov” domain name or a “.ca.gov” domain name no later than January 1, 2029. Current law defines “local agency” for these purposes as a city, county, or city and county. This bill would recast these provisions by instead requiring a city, county, or city and county to comply with the above- described domain requirements and by deleting the term “local agency” from the above-described provisions. The bill would also require a special district, joint powers authority, or other political subdivision to comply with similar domain requirements no later than January 1, 2031. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Watch CASA - Watch CSDA - Oppose ACWA - Not Favor OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 818 Avila-Farias [D]The Permit Streamlining Act requires a public agency to determine whether an application for a development project is complete within specified time periods, as specified. The act requires a public agency that is the lead agency for a development project to approve or disapprove that project within specified time periods. Current law, the California Emergency Services Act, among other things, authorizes the governing body of a city, county, or city and county to proclaim a local emergency under certain circumstances, as specified, and grants political subdivisions various powers and authorities in periods of local emergency. This bill would require a city, county, or city and county to approve or deny a complete application, within 10 business days of receipt of the application, for a building permit or an equivalent permit for any of the specified structures intended to be used by a person until the rebuilding or repair of an affected property is complete. Signed into law Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - NYC CASA - Oppose Unless Amended CSDA - Watch ACWA - NYC AB 823 Boerner [D]This bill would, on and after January 1, 2029, prohibit a person from selling, offering for sale, distributing, or offering for promotional purposes in this state a personal care product containing plastic glitter, or a personal care product in a non-rinse-off product or a cleaning product containing one ppm or more by weight of plastic microbeads that are used as an abrasive, as specified. The bill would authorize, until January 1, 2030, a person to continue to sell, offer for sale, distribute, or offer for promotional purposes in this state an existing stock of personal care products containing plastic glitter, as specified. By adding these prohibitions to the Plastic Microbeads Nuisance Prevention Law, the bill would impose the civil penalty for violations of these prohibitions. Vetoed Watch State Priorities: Source Control - Support legislation and/or regulations that restrict the non-essential use of microplastics and contaminants of emerging concern in any product that is disposed or has the potential to be introduced into the sanitary sewer system. ACC-OC - NYC LOCC - Watch CASA - Support CSDA - NYC ACWA - NYC AB 872 Rubio [D]Current law, known as the Green Chemistry program, requires the Department of Toxic Substances Control to adopt regulations to establish a process to identify and prioritize chemicals or chemical ingredients in consumer products that may be considered as being chemicals of concern. Current law requires the regulations to include criteria by which chemicals and their alternatives may be evaluated by the department, as provided. Current law requires the department, following the completion of an alternatives analysis, to provide a regulatory response that may include, but is not limited to, not requiring any action and restricting or prohibiting the use of the chemical of concern in the consumer product. This bill would, beginning January 1, 2028, prohibit a person from distributing, selling, or offering for sale a covered product, as defined, that contains intentionally added PFAS, as defined, unless the department has issued a regulatory response for the covered product pursuant to the Green Chemistry program or the prohibition is preempted by federal law. Two-year bill Watch State Priorities: Source Control - Support legislation and/or regulations that restrict the non-essential use of microplastics and contaminants of emerging concern in any product that is disposed or has the potential to be introduced into the sanitary sewer system. ACC-OC - NYC LOCC - Watch CASA - Oppose CSDA - NYC ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 874 Avila Farias This bill would require a local agency to waive fees or charges that are collected by a local agency to fund the construction of public improvements or facilities for residential developments subject to a regulatory agreement with a public entity, as provided, that includes certain income and affordability requirements. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - NYC CASA - Oppose Unless Amended CSDA - Oppose ACWA - Oppose Unless Amended AB 1206 Harabedian [D]This bill requires each local agency to develop a program for the preapproval of single-family and multifamily residential housing plans for public use. The bill would require a large jurisdiction, as defined, to develop this program by July 1, 2026, and a small jurisdiction, as defined, to develop a program by January 1, 2028. The bill would authorize a local agency to charge a fee to an applicant for the preapproval of a single-family or multifamily residential housing plan, as specified. The bill would require the local agency to post preapproved single-family or multifamily residential housing plans and the contact information of the applicant on the local agency’s internet website. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - NYC CASA - Seek Amendments CSDA - NYC ACWA - Seek Amendments SB 31 McNerney [D]The Water Recycling Law generally provides for the use of recycled water. Current law requires any person who, without regard to intent or negligence, causes or permits an unauthorized discharge of 50,000 gallons or more of recycled water in or on any waters of the state to immediately notify the appropriate regional water board. This bill would, for the purposes of the above provision, redefine “recycled water” and provide that water discharged from a decorative body of water during storm events is not to be considered an unauthorized discharge if recycled water was used to restore levels due to evaporation. Signed into law Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Support CASA - Support CSDA - Support ACWA - Favor SB 72 Caballero [D]This bill would revise and recast certain provisions regarding The California Water Plan to, among other things, require the department to expand the membership of the advisory committee to include, among others, tribes, labor, and environmental justice interests. The bill would require the department, as part of the 2033 update to the plan, to update the interim planning target for 2050, as provided. The bill would require the target to consider the identified and future water needs for all beneficial uses, including, but not limited to, urban uses, agricultural uses, tribal uses, and the environment, and ensure safe drinking water for all Californians, among other things. The bill would require the plan to include specified components, including a discussion of the estimated costs, benefits, and impacts of any project type or action that is recommended by the department within the plan that could help achieve the water supply targets. Signed into law Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Support CASA - Support CSDA - Support ACWA - Support OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 239 Arreguin [D]Current law, until January 1, 2026, authorizes specified neighborhood city councils to use alternate teleconferencing provisions related to notice, agenda, and public participation, as prescribed, if, among other requirements, the city council has adopted an authorizing resolution and 2/3 of the neighborhood city council votes to use alternate teleconference provisions, as specified. This bill would authorize a subsidiary body, as defined, to use alternative teleconferencing provisions and would impose requirements for notice, agenda, and public participation, as prescribed. The bill would require the subsidiary body to post the agenda at the primary physical meeting location. The bill would require the members of the subsidiary body to visibly appear on camera during the open portion of a meeting that is publicly accessible via the internet or other online platform, as specified. Two-year bill (Provisions amended into SB 707) Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Sponsor CASA - NYC CSDA - Support ACWA - Favor SB 317 Hurtado [D]Current law establishes the State Department of Public Health to implement various programs throughout the state relating to public health. The department administers the California Wastewater Surveillance Dashboard that provides an overview of data from testing wastewater for SARS-CoV-2 virus in California. The data in the dashboard is generated by those participating in the department’s California Surveillance of Wastewaters (Cal- SuWers) network, including the Cal-SuWers program, WastewaterSCAN, the federal Centers for Disease Control and Prevention National Wastewater Surveillance System, wastewater utilities, and academic, laboratory, and other state and federal partners. This bill would require the department, in consultation with participating wastewater treatment facilities, local health departments, and other subject matter experts, to maintain the Cal-SuWers network to test, as appropriate for public health use, for pathogens, toxins, or other public health indicators in wastewater. The bill would require participation in the Cal-SuWers network from local health departments and wastewater treatment facilities to be voluntary. The bill would authorize the department to coordinate with health care providers, local health departments, and emergency response agencies to ensure wastewater surveillance data is used for early intervention, outbreak response, epidemiological investigations, and public health planning. Vetoed Support Legislative and Regulatory Policies: Public Health - Support (generally) measures that provide for improved public health through regulation. ACC-OC - NYC LOCC - Watch CASA - Support in Concept CSDA - Watch ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 318 Becker [D]Existing law designates the State Air Resources Board as responsible for controlling vehicular air pollution, while air pollution from non-vehicular sources is managed by air pollution control districts. Air districts can require permits to construct or operate equipment emitting air contaminants, with certain exceptions. Under the Clean Air Act, new or modified major sources must use best available control technology for emissions. This bill defines "best available control technology" for these purposes and establishes a process for evaluating permits. It requires the executive officer of the state board to review permits for Title V sources and object if they do not comply with the Clean Air Act. The bill also requires a technical feasibility analysis for certain renewal permits and allows for more stringent measures than those proposed by applicants. The bill revises the precertification program by updating criteria every eight years and expanding it to include various types of equipment and processes. It allows for temporary employee assignments to leverage expertise and invites other regulatory agencies to join the expansion of the precertification program. Two-year bill Watch Legislative and Regulatory Policies: Air Quality - Monitor legislative and regulatory developments in response to State’s goal of achieving Carbon Neutrality including the Advanced Clean Fleets and the Zero-Emission Forklift Fleets regulations pertaining to the electrification of engine- driven equipment and fleets. ACC-OC - NYC LOCC - NYC CASA - Watch CSDA - Watch ACWA - NYC SB 445 Wiener [D]Current law creates the High-Speed Rail Authority Office of the Inspector General (office) and authorizes the High-Speed Rail Authority Inspector General (inspector general) to initiate an audit or review regarding oversight related to delivery of the high-speed rail project undertaken by the authority and the selection and oversight of contractors related to that project. Current law requires the inspector general to submit annual reports to the Legislature and Governor regarding its findings. This bill would require the authority, on or before July 1, 2026, to develop and adopt internal rules, as defined, setting forth standards and timelines for the authority to engage utilities to ensure coordination and cooperation in relocating utility infrastructure or otherwise resolving utility conflicts affecting the delivery of the high-speed rail project. The bill would require the authority to ensure that the internal rules, among other things, identify the circumstances under which the authority would be required seek to enter into a cooperative agreement with a utility that, where relevant, identifies who is responsible for specific utility relocations, as specified. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Oppose CASA - Oppose CSDA - Oppose ACWA - Oppose OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 454 McNerney [D]This bill, which would become operative upon an appropriation by the Legislature, would enact a PFAS mitigation program. As part of that program, the bill would create the PFAS Mitigation Fund in the State Treasury and would authorize certain moneys in the fund to be expended by the state board, upon appropriation by the Legislature, for specified purposes. The bill would authorize the state board to seek out and deposit nonstate, federal, and private funds, require those funds to be deposited into the PFAS Mitigation Fund, and continuously appropriate the nonstate, federal, and private funds in the fund to the state board for specified purposes. The bill would authorize the state board to establish accounts within the PFAS Mitigation Fund. The bill would authorize the state board to expend moneys from the fund in the form of a grant, loan, or contract, or to provide assistance services to water suppliers and sewer system providers, as those terms are defined, for multiple purposes, including, among other things, to cover or reduce the costs for water suppliers associated with treating drinking water to meet the applicable state and federal maximum perfluoroalkyl and polyfluoroalkyl substances (PFAS) contaminant levels. The bill would require a water supplier or sewer system provider to include a clear and definite purpose for how the funds will be used to provide public benefits to their community related to safe drinking water, recycled water, or treated wastewater in order to be eligible to receive funds. The bill would require the state board to adopt guidelines to implement these provisions, as provided. Vetoed Watch State Priorities: Contaminants of Emerging Concern - Support legislation that will eliminate non- essential PFAS uses to reduce and mitigate PFAS in everyday consumer goods. ACC-OC - NYC LOCC - Sponsor CASA - Support CSDA - Support ACWA - Sponsor SB 496 Hurtado [D]Current law requires the State Air Resources Board to manage vehicle emissions and fuel standards to control air pollution effectively, ensuring they are feasible and cost-effective. The California Global Warming Solutions Act of 2006 designates this board to regulate greenhouse gas emissions. Under this authority, the board implemented the Advanced Clean Fleets Regulation, mandating that government and high-priority fleets transition to zero-emission vehicles, with some exemptions permitted. This bill proposes the establishment of an Appeals Advisory Committee to review denied exemption requests. This committee, comprising specified government and non-government representatives, must meet monthly, with meetings recorded and accessible online. They must review appeals and provide recommendations within 60 days, which the board must consider publicly within another 60 days. Certain vehicles involved in emergency responses would be exempt from the regulations, and fleet owners will not be pressured to produce zero-emissions vehicle purchase agreements to delay transitioning mandates. Two-year bill Support Legislative and Regulatory Policies: Air Quality - Monitor legislative and regulatory developments in response to State’s goal of achieving Carbon Neutrality including the Advanced Clean Fleets and the Zero-Emission Forklift Fleets regulations pertaining to the electrification of engine- driven equipment and fleets. ACC-OC - NYC LOCC - Sponsor CASA - Watch CSDA - Sponsor ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 595 Choi [R]Current law regulates the investment of public funds by local agencies, as defined. Current law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for the immediate needs of the local agency to invest the money as it deems wise or expedient in certain securities and financial instruments, subject to various requirements. These permissible investments include commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization that is issued by entities meeting certain criteria, if the eligible commercial paper has a maximum maturity of 270 days or less. This bill would revise the maximum maturity periods for the investments in prime quality commercial paper to 397 days. Passed the Legislature. Currently on the Governor's Desk Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - Watch ACWA - NYC SB 601 Allen [D]The State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the Porter-Cologne Water Quality Control Act (act) and the National Pollutant Discharge Elimination System (NPDES) permit program. Under the act, the State Water Resources Control Board is authorized to adopt water quality control plans for waters for which quality standards are required by the federal Clean Water Act, as specified, and that in the event of a conflict, those plans supersede regional water quality control plans for the same waters. This bill would authorize the state board to adopt water quality control plans for nexus waters, which the bill would define as all waters of the state that are not also navigable, except as specified. The bill would require any water quality standard that was submitted to, and approved by, or is awaiting approval by, the United States Environmental Protection Agency or the state board that applied to nexus waters as of May 24, 2023, to remain in effect, as provided. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Oppose CASA - Oppose CSDA - Oppose ACWA - Oppose OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 682 Allen [D]This bill would, on and after January 1, 2028, prohibit a person from distributing, selling, or offering for sale a cleaning product, dental floss, juvenile product, food packaging, or ski wax, as provided, that contains intentionally added PFAS, as defined, except for previously used products and as otherwise preempted by federal law. The bill would, on and after January 1, 2030, prohibit a person from distributing, selling, or offering for sale cookware that contains intentionally added PFAS, except for previously used products and as otherwise preempted by federal law. The bill would authorize the department, on or before January 1, 2029, to adopt regulations to carry out these provisions. Vetoed Support State Priorities: Contaminants of Emerging Concern - Support legislation that will eliminate non- essential PFAS uses to reduce and mitigate PFAS in everyday consumer goods. ACC-OC - NYC LOCC - Support CASA - Sponsor CSDA - Support ACWA - Favor SB 707 Durazo [D](1)Existing law, the Ralph M. Brown Act, requires, with specified exceptions, that all meetings of a legislative body, as defined, of a local agency be open and public and that all persons be permitted to attend and participate. This bill would, until January 1, 2030, require an eligible legislative body, as defined, to comply with additional meeting requirements, including that, except as specified, all open and public meetings include an opportunity for members of the public to attend via a 2-way telephonic service or a 2-way audiovisual platform, as defined, and that the eligible legislative body take specified actions to encourage residents to participate in public meetings, as specified. Signed into law Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Concerns CASA - Watch CSDA - Oppose Unless Amended ACWA - NYC SB 740 Rubio [D]Current law authorizes a municipal wastewater agency to enter into agreements with entities responsible for stormwater management, including, but not limited to, municipal, industrial, and commercial stormwater dischargers, for the purpose of managing stormwater and dry weather runoff. Current law requires a municipal wastewater agency, if the agency enters into a new agreement or amends an agreement pursuant to those provisions, to file a copy of the agreement or amendment with the local agency formation commission in each county where any part of the municipal wastewater agency’s territory is located within 30 days after the effective date of the new agreement or amendment. This bill would extend that filing requirement timeline to 40 days. Two-year bill Watch Legislative and Regulatory Policies: Special Districts - Oppose further state regulations that adversely impact special district financing, operations, and administration. ACC-OC - NYC LOCC - Watch CASA - NYC CSDA - Watch ACWA - NYC Legend: ACC-OC - Association of California Cities, Orange County LOCC - League of California Cities NYC - Not Yet Considered CASA - California Association of Sanitation Agencies ACWA - Association of California Water Agencies OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS CSDA - California Special Districts Association 1 | P age TO: Orange County Sanitation District FROM: Whittingham Public Affairs Advisors DATE: October 24, 2025 SUBJECT: Local Legislative Report Following are a few of the more notable developments and issues that have transpired in Orange County over the last several weeks: • Cypress City Councilmember Scott Minikus, who was appointed to the City Council in 2021, announced his resignation effective October 1. Former Councilmember Minikus, who had recently retired from his position with the U.S. Department of Homeland Security, announced his departure at a recent Council meeting. City Clerk Alisha Farnell and Assistant City Clerk Christina Dizol also announced their resignations from their respective positions. • The Orange County Supervisors voted unanimously to retain an outside team of auditors to review billions of dollars in contracts nearly a year after former Supervisor Andrew Do plead guilty to accepting bribes and rerouting over $10 million worth of contracts. Supervisors are paying more than $1.3 million to auditing firm Weaver & Tidwell, asking them to review more than 2,000 contracts worth over $4 billion, including spending from the county general fund, pandemic relief funds and the state’s Mental Health Services Act. Do recently began serving a five-year prison term. • The CalOptima Board of Directors also voted unanimously to release on October 30 the results of an investigation by an outside law firm into contracts and other protocols & procedures at the agency, with a specific emphasis on the period when former Supervisor Do served on the health care provider’s board. • Negotiations continue between the County of Orange and a coalition of cities and sanitation districts on the Waste Infrastructure System Enhancements (WISE) agreements, regarding long-term landfill tipping fees to fund essential capital improvement projects. It is currently anticipated that the recommendations will come to the Board of Supervisors in November, after which each city and sanitary district will notice and conduct their respective Proposition 218 hearings. PUBLIC AFFAIRS ADVISORS 2 | P age • Phase II of Orange County’s Climate Action Plan (CAP), a comprehensive roadmap detailing potential projects and programs to reduce greenhouse gas and other emissions from various sources, is on track to come to the Board of Supervisors on November 4. Key initiatives within the CAP included increasing stormwater capture and infiltration, reducing the amount of organic waste going to landfills by 75 percent and improving edible food recovery by 20 percent, and exploring the feasibility of regional anaerobic digestion and conversion technology facilities. The County is required to have a completed CAP in order to apply for and secure Proposition 4 grants for these targeted programs. • Crews worked overnight to repair a large sinkhole that opened up in the middle of a major street in Orange on Saturday, October 4. The sinkhole, estimated at up to 15 feet deep, appeared on Meats Avenue at Santiago Boulevard, and the street was blocked off and traffic was redirected around the area. The sinkhole is believed to have been caused by a water main break. The water at several nearby homes was shut off as repairs were underway. • An unusual mid-October storm in the region necessitated mandatory evacuation orders for several hours in canyon communities impacted by the Airport Fire, which burned 23,000 acres last September. As part of our scope of work, Whittingham Public Affairs Advisors has continued to monitor the various City Council agendas and highlighted issues and items of relevance to OC San. We also continue to monitor activities at the South Coast Air Quality Management District, Orange County Water District, and South Orange County Wastewater Authority. It is a pleasure to work with you and to represent the Orange County Sanitation District. Sincerely, Peter Whittingham 11/4/2025 1 WWW.TOWNSENDPA.COM SACRAMENTO • WASHINGTON, DC NORTHERN CALIFORNIA • CENTRAL CALIFORNIA • SOUTHERN CALIFORNIA Administration Committee Update November 12, 2025 2 2025 Legislative Session: Bill Overview Orange County Sanitation District: State Legislative Update 2,397 Total Bills Introduced 917 Bills Passed Legislature 794 Chaptered and 123 Vetoed Sign/Veto Deadline –October 13 1 2 T -$WNSEND PUBLIC AFFAIRS EST TPA 1998 OC 6 SAN ORANGE COUNTY SANITATION DISTRICT 11/4/2025 2 3 2025 Legislative Session: State Budget $12B Budget Deficit: Borrowing, Reserves, and Cost Shifts $12B Budget Deficit: Borrowing, Reserves, and Cost Shifts Last Minute Trailer Bills & Budget Bill Juniors Prop 4 Climate Bond: $3.3B Appropriated Prop 4 Climate Bond: $3.3B Appropriated Concerns Remain: Multi-year Deficits, CA/DC Dynamics Concerns Remain: Multi-year Deficits, CA/DC Dynamics Orange County Sanitation District: State Legislative Update 4 2025 Legislative Session: Significant Subjects Cap and Invest Reauthorization CEQA Implementation Immigration Response Congressional Redistricting New Senate Leadership Orange County Sanitation District: State Legislative Update 3 4 11/4/2025 3 Page 5 Current program expires in 2045Current program expires in 2045 Opportunities to advocate for funding via Legislature’s discretionary fundsOpportunities to advocate for funding via Legislature’s discretionary funds Meetings with relevant budget committee and leadership staffMeetings with relevant budget committee and leadership staff Innovative Biosolids Management Program Advocacy Innovative Biosolids Management Program Advocacy Cap and Invest Advocacy Update Orange County Sanitation District: State Legislative Update 6 2025 Legislative Session: Notable Legislation AB 339 (Ortega): Local public employee organizations: notice requirements Details Status • AB 339 would require the governing body of a public agency like OC San to give recognized employee organizations no less than 45 days’ written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract to perform services that are within the scope of work of the job classifications represented by the recognized employee organization. • OC San opposed • Signed into law by the Governor Orange County Sanitation District: State Legislative Update 5 6 11/4/2025 4 7 2025 Legislative Session: Notable Legislation SB 682 (Allen): Non-Essential PFAS Use Ban Details Status • Prohibits a person from distributing, selling, or offering for sale in the state a cleaning product, cookware, dental floss, juvenile product, food packaging, or ski wax that contains intentionally added perfluoroalkyl and polyfluoroalkyl substances (PFAS) and requires the Department of Toxic Substances Control (DTSC) to enforce these prohibitions using its existing authority. CASA sponsored. • OC San supported • Vetoed by the Governor Orange County Sanitation District: State Legislative Update 8 2025 Legislative Session: Notable Legislation AB 823 (Boerner): Plastic Microbeads/Plastic Glitter Details Status • This bill prohibits a person from selling or offering for promotional purposes in the state any of the following: o A personal care product containing plastic microbeads used as an abrasive to clean, exfoliate, or polish, in a non-rinse-off product. o A cleaning product, as defined, containing plastic microbeads used as an abrasive to clean, exfoliate, or polish. o A personal care product containing plastic glitter. • Vetoed by the Governor Orange County Sanitation District: State Legislative Update 7 8 11/4/2025 5 9 2025 Legislative Session: Notable Legislation SB 454 (McNerney): PFAS Mitigation Fund Details Status • Creates the per- and polyfluoroalkyl substances (PFAS) Mitigation Fund to expend for the treatment of PFAS in drinking water, wastewater, and recycled water. • The bill authorizes the State Water Board to seek out and deposit nonstate, federal, and private funds into the Fund, and to establish accounts within the Fund. • Vetoed by the Governor Orange County Sanitation District: State Legislative Update 10 2025 Legislative Session: Notable Legislation SB 707 (Durazo): Brown Act: Teleconferencing Details Status • Extends and modifies flexibility provisions to participate in meetings remotely. • Requires real-time two-way communication with the public for cities and special districts of a certain size threshold (includes OC San) for all meetings of the board of directors/city council. • Requires agenda translation into languages spoken by 20 percent of the local population, with exceptions. • Signed into law by the Governor Orange County Sanitation District: State Legislative Update 9 10 11/4/2025 6 Page 11 Video Retention Reform Details • Existing law requires special districts to retain video monitoring recordings for one year after creation. • Costs associated with routine video monitoring data storage have increased significantly as technology and video quality increases. • AB 510 (Cooley) in 2019 would have helped ease the burden. CASA and OC San supported, but AB 510 failed to get a hearing in the Assembly and died. • CSDA not sponsoring legislation in 2026 Orange County Sanitation District: State Legislative Update Page 12 Contact Information Christopher Townsend President CTownsend@TownsendPA.com Cori Takkinen Vice President & Chief Executive Officer CTakkinen@TownsendPA.com Eric O’Donnell Director EODonnell@TownsendPA.com OC San: Legislative Update 11 12 T -WNSEND PUBLIC AFFAIRS EST TPA 1998 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4562 Agenda Date:11/12/2025 Agenda Item No:9. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: ORANGE COUNTY SANITATION DISTRICT ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District’s (OC San) Annual Comprehensive Financial Report for the year ended June 30, 2025, 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. BACKGROUND The Annual Comprehensive Financial Report for the year ended June 30, 2025 is attached for the Administration Committee’s consideration. Included within the report are OC San’s financial statements for the year ended June 30, 2025, along with the Independent Auditor’s Report that includes the unmodified opinion. RELEVANT STANDARDS ·Produce appropriate financial reporting - annual financial report & audit letter and Ops & CIP budgets every two years, with annual update Orange County Sanitation District Printed on 11/3/2025Page 1 of 2 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4562 Agenda Date:11/12/2025 Agenda Item No:9. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Report to the Board of Directors ·Independent Accountant's Report on Applying Agreed-Upon Procedures Related to Appropriations Limit Calculation ·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 ·Annual Comprehensive Financial Report for the Year Ended June 30, 2025 ·Presentation Orange County Sanitation District Printed on 11/3/2025Page 2 of 2 powered by Legistar™ eidebailly.com 25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 October 28, 2025 To the Board of Directors Orange County Sanitation District Fountain Valley, California We have audited the financial statements of the Orange County Sanitation District (OC San) as of and for the year ended June 30, 2025, and have issued our report thereon dated October 28, 2025. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our letter dated August 22, 2025, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s system of internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of OC San solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We have provided our comments regarding internal controls during our audit in our Independent Auditor’s 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 dated October 28, 2025. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence. ..-..Eide ~Badly 2 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by OC San is included in Note 1 to the financial statements. As discussed in Note 11 to the financial statements, OC San has changed accounting policies related to accounting for compensated absences to adopt the provisions of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Accordingly, the accounting change has been retrospectively applied to the financial statements beginning July 1, 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are amounts related to the net pension liability, total pension liability, other post-employment benefits (OPEB) liability and related deferred inflows of resources and deferred outflows of resources. Management’s estimates of the net pension liability, total pension liability, total OPEB liability, related deferred inflows of resources and deferred outflows of resources, and disclosures are based on actuarial valuations and a proportionate share of the collective net pension of the Orange County Retirement System (OCERS) cost-sharing plan. We evaluated the key factors and assumptions used to develop management’s estimates and determined that it is reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting OC San’s financial statements relate to:  As disclosed in Note 6 of the financial statements, the valuation of OC San’s net pension liability and total pension liability and related deferred outflows/inflows of resources are sensitive to the underlying actuarial assumptions used including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 6, a one percent increase or decrease in the discount rate has a material effect on OC San’s pension liabilities.  As disclosed in Note 7 of the financial statements, the valuation of OC San’s total OPEB liability and related deferred outflows/inflows of resources are sensitive to the underlying actuarial assumptions used including, but not limited to, the discount rate and healthcare cost trend rate. As disclosed in Note 7, a one percent increase or decrease in the discount rate or healthcare cost trend rate has a material effect on OC San’s OPEB liability. 3 Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. The following misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management: Number Account/Description Debit Credit 1 Construction in Progress 3,400,756$ Accounts Payable 3,400,756$ To accrue a portion of an invoice paid after year end to 6/30/25 pertaining to FYE 2025 The following summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit. Number Account/Description Debit Credit 1 Prepaid Retirement 9,186,104$ Deferred Outflows - Pension 9,186,104$ To reclass pension prepayment as prepaid retirement for financial statement presentation. 2 Interest Expense 3,426,004 Miscellaneous Income 3,426,004 To record interest expense at gross rather than net of the BAB interest subsidy. During our audit, we noted that OC San’s financial statements did not include a disclosure for the condensed financial information for the Orange County Sanitation District Financing Corporation, a blended component unit of OC San. Management evaluated the item and determined that the omission was immaterial to the financial statements as a whole. Accordingly, the disclosure was passed on for the current year. 4 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to OC San’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. As described in Note 11 to the financial statements, due to the adoption of GASB Statement No. 101, Compensated Absences, OC San restated opening balances as of July 1, 2024. The purpose of the paragraph is to draw attention to the disclosures for the adoption of the standards update. We have included an emphasis of matter in our report regarding this restatement. We did not modify our opinion related to this matter. Representations Requested from Management We have requested certain written representations from management which are included in the management representation letter dated October 28, 2025. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with OC San, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as OC San’s auditors. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in OC San’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we reviewed the other information and considered whether such information, or the manner of its presentation, is materially consistent with the financial statements. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. 5 Group Audits The consolidated financial statements include the financial statements of the Orange County Sanitation District Financing Corporation (Corporation), a blended component unit of OC San. For the purposes of our audit, we do not consider the Corporation to be a significant component of the consolidated financial statements. Consistent with the audit of the consolidated financial statements as a whole, our audit included obtaining an understanding of the Corporation and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of the Corporation and completion of further audit procedures. This report is intended solely for the information and use of the Board of Directors and management of OC San and is not intended to be, and should not be, used by anyone other than these specified parties. Laguna Hills, California eidebailly.com 25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Accountant’s Report On the Article XIII-B Appropriations Limit Calculation To the Board of Directors Orange County Sanitation District Fountain Valley, California We have performed the procedures enumerated below, on the Appropriations Limit Calculation of the Orange County Sanitation District (OC San) prepared in accordance with Article XIII-B of the California Constitution for the fiscal year ended June 30, 2025. OC San’s management is responsible for the Appropriations Limit Calculation for the year ended June 30, 2025. OC San has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the Appropriations Limit Calculation and we will report on findings based on the procedures performed. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures performed and associated findings are as follows: 1.We obtained the completed worksheets setting forth the calculations necessary to establish OC San's appropriations limit and compared the 2024-25 limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of OC San’s Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of OC San’s Board of Directors. Finding: No exceptions were found as a result of applying the procedure. 2.We added last year's limit to the annual adjustment amount and compared the resulting amount to the 2024-2025 appropriations limit. Finding: No exceptions were found as a result of applying the procedure. 3.We compared the current year information to the worksheets described in Procedure 1 above and to information provided by the California State Department of Finance. Finding: No exceptions were found as a result of applying the procedure. 4.We agreed the prior year appropriations limit to the prior year appropriations limit adopted by OC San’s Board of Directors. Finding: No exceptions were found as a result of applying the procedure. ..-..Eide ~Badly 2 We were engaged by OC San to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on OC San’s appropriations limit calculation for the year ended June 30, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of OC San and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution. This report is intended solely for the information and use of OC San’s Board of Directors and management of OC San and is not intended to be and should not be used by anyone other than those specified parties. Laguna Hills, California October 28, 2025 eidebailly.com 25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Auditor’s 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 To the Board of Directors Orange County Sanitation District Fountain Valley, California We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the Orange County Sanitation District (OC San) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise OC San’s basic financial statements and have issued our report thereon dated October 28, 2025. Our report included an emphasis of matter paragraph regarding OC San’s adoption of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, effective July 1, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered OC San’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of OC San’s internal control. Accordingly, we do not express an opinion on the effectiveness of OC San’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of OC San’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ..-..Eide ~Badly 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether OC San’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of OC San’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering OC San’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Laguna Hills, California October 28, 2025 Orange County, California Orange County Sanitation District for the year ended June 30, 2025 AnnualComprehensiveFinancial Report ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2025 Prepared By: Administrative Services Department Financial Management Division Ruth Zintzun Finance Manager (THIS PAGE INTENTIONALLY LEFT BLANK) ORANGE COUNTY SANITATION DISTRICT Annual Comprehensive Financial Report Table of Contents For the Year Ended June 30, 2025 Page INTRODUCTORY SECTION (Unaudited): Letter of Transmittal ..................................................................................................................... i-viii GFOA Certificate of Achievement ............................................................................................... ix Board of Directors ........................................................................................................................ x Organizational Chart .................................................................................................................... xi Map of Service Area .................................................................................................................... xii FINANCIAL SECTION: Independent Auditor’s Report ...................................................................................................... 1-4 Management Discussion and Analysis – Required Supplementary Information (Unaudited) .... 5-11 Basic Financial Statements: Statement of Net Position ................................................................................................... 14 Statement of Revenues, Expenses, and Change in Net Position ...................................... 15 Statement of Cash Flows .................................................................................................... 16 Notes to Basic Financial Statements .................................................................................. 17-50 Required Supplementary Information (Unaudited): Proportionate Share of the Net Pension Liability (Asset) – OCERS Pension Plan ............ 52 Schedule of District Contributions – OCERS Pension Plan ............................................... 53 Total Pension Liability – Additional Retiree Benefit Account .............................................. 54 Changes in Total Pension Liability – Additional Retiree Benefit Account ........................... 55 Total OPEB Liability – Post-Employment Medical Benefits Plan........................................ 56 Changes in Total OPEB Liability – Post-Employment Medical Benefits Plan .................... 57 Supplementary Information: Combining Area Schedule of Net Position .......................................................................... 60 Combining Area Schedule of Revenues, Expenses, and Change in Net Position ............ 61 Combining Area Schedule of Cash Flows .......................................................................... 62 STATISTICAL SECTION (Unaudited): Net Position by Component – Last Ten Fiscal Years .................................................................. 64 Revenues and Gross Capital Contributions by Source – Last Ten Fiscal Years ........................ 65 Expenses by Type – Last Ten Fiscal Years ................................................................................ 66 Change in Net Position – Last Ten Fiscal Years ......................................................................... 67 Cash and Investment Reserve Balances – Last Ten Fiscal Years ............................................. 68 Sewer Service Fees – Last Nine Fiscal Years and Next Fiscal Year .......................................... 69 Number of Accounts and Revenues by Customer Class – Last Ten Fiscal Years ..................... 70 Principal Sewer Service Customers – Current Fiscal Year and Nine Years Ago ....................... 71 Ratio of Annual Debt Service to Total Expenses – Last Ten Fiscal Years ................................. 72 Debt Coverage Ratios – Last Ten Fiscal Years .......................................................................... 73 Ratios of Outstanding Debt – Last Ten Fiscal Years .................................................................. 74 Comparison of the Volume of Wastewater Treated – Last Ten Fiscal Years ............................. 75 Authorized Full-time Equivalents by Function – Last Ten Fiscal Years ...................................... 76 Biosolids Produced – Last Ten Fiscal Years ............................................................................... 77 Capital Asset Statistics – Last Ten Fiscal Years ......................................................................... 78 Demographic Statistics – Last Ten Fiscal Years ......................................................................... 79 Estimated Population Served by the Orange County Sanitation District .................................... 80 Principal Orange County Employers – Current Fiscal Year and Nine Years Ago ....................... 81 Operating Indicators .................................................................................................................... 82 OTHER DATA & TRENDS (Unaudited): Cash and Investment Portfolio ................................................................................................... 84 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years ............... 85 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................ 86 Property Tax and User Fee Levies and Collections – Last Ten Fiscal Years ............................. 87 Property Value and Construction – Last Ten Fiscal Years ......................................................... 88 Insurance in Force ....................................................................................................................... 89 --- (THIS PAGE INTENTIONALLY LEFT BLANK) i October 28, 2025 Board of Directors and Citizens of the Orange County Sanitation District Orange County, California Subject: Letter of Transmittal Submitted herewith is the Annual Comprehensive Financial Report of the Orange County Sanitation District (OC San), Orange County, California for the fiscal year ended June 30, 2025. This report includes the financial position and activity of individual revenue areas, as described within the Governmental Structure below, as of June 30, 2025, and was prepared by the Financial Management Division of OC San’s Administrative Services Department. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with OC San. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and changes in the financial position of OC San. All disclosures necessary to enable the reader to gain an understanding of the agency’s financial activities have been included. Included within the accompanying financial statements are all of the organizations, activities, and functions controlled by OC San’s Board of Directors in accordance with the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting. For the purpose of this evaluation, control was determined by the Board’s responsibility for: (1) adoption of the budget and user charges, (2) taxing authority, and (3) establishment of policies. The reporting entity and its services are described in further detail in Note 1 of the financial statements. An audit of the books, financial records, and transactions of OC San is conducted annually by independent certified public accountants. OC San selected the accounting firm of Eide Bailly LLP to perform the audit for the year ended June 30, 2025. The auditor’s report on OC San’s basic financial statements and supplementary information is located on page 1 within the financial section of this report. This report renders an unmodified opinion on OC San’s basic financial statements for the year ended June 30, 2025. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. GOVERNMENTAL STRUCTURE The Orange County Sanitation District encompasses the central and northwest section of Orange County. OC San provides wastewater treatment for an area of the County covering 479 square miles and serving a population of approximately 2.6 million, or 80 percent of the County’s population. OC San was originally incorporated in 1954 as seven separate public corporations, or districts, with two additional districts added in 1985 and 1986. In April of 1998, at OC San’s request, the Board of Supervisors of the County of Orange passed Resolution No. 98-140 ordering the consolidation of these nine County Sanitation Districts into a new, single sanitation district, to be known as the Orange County Sanitation District, effective July 1, 1998. This action was recommended to the Board by the Local Agency Formation Commission in OC ~SAN ORANGE COUNTY SANITATION DISTRICT 18480 Bandilier Circle Fountain Valley, CA 92708 714.962.2411 www.ocsan.gov Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. Serving: Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma 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 ii order to simplify governance structures, reduce the size of the Board, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. The boundaries of the nine previous districts had remained intact for the purpose of collecting sewer user fees at the previously established rate schedules and were referred to as nine individual revenue areas through June 30, 2000. Effective July 1, 2003, eight of the revenue areas consolidated user fee rates and all enterprise fund accounting and budgeting activities and are now known as the Consolidated Revenue Area. The boundaries of one of the previous districts, now known as Revenue Area No. 14, have been maintained separately because their use of OC San’s collection, treatment, and disposal system is funded by the Irvine Ranch Water District (IRWD). OC San is managed by an administrative organization composed of directors appointed by the agencies or cities which are serviced by OC San. Each of the two remaining revenue areas, the Consolidated Revenue Area and Revenue Area 14, has its own budget and is responsible for the construction and maintenance of its own collection system. All revenue areas, except Revenue Area 14 and the portion of the Consolidated Revenue Area previously known as Revenue Area 13, receive their own share of the one-percent ad valorem property tax levy. In addition, all revenue areas, except Revenue Area 14, receive user fees from property owners. Revenue Area 14 receives all of its revenues from service charges to IRWD. The purpose of OC San’s wastewater collection, treatment, and recycling program is to protect the public’s health and the environment, preserving the beneficial uses of coastal waters and maintaining air quality. The objectives of operating the reclamation plants are to process and pass on for purification or dispose of the treated wastewater and the separated solids in accordance with federal, state, and local laws including the Environmental Protection Agency. OC San’s sewerage system includes more than 380 miles of sewers that convey wastewater generated within OC San’s boundaries to OC San’s two reclamation plants; Plant No. 1 located in the City of Fountain Valley and Plant No. 2 located in the City of Huntington Beach. Plant No. 1 has a primary treatment capacity of 208 million gallons per day (mgd) and a secondary treatment capacity of 182 mgd, while Plant No. 2 has a primary capacity of 168 mgd and a secondary capacity of 150 mgd. In fiscal year 2025-26, both plants are projected to receive a combined average daily wastewater flow of 185 million gallons per day from residential, commercial, and industrial sources. After wastewater receives secondary treatment, it flows to the Groundwater Water Replenishment System (GWRS) at the Orange County Water District, located adjacent to OC San, where it undergoes a state-of- the-art purification process consisting of microfiltration, reverse osmosis, and ultraviolet light with hydrogen peroxide. The product water is near-distilled quality. Approximately 30 million gallons (113,500 cubic meters) per day of GWRS water are pumped into injection wells to create a seawater intrusion barrier. Approximately 10 million gallons (37,900 cubic meters) are piped to Mid-Basin injection wells in Santa Ana, and 90 million gallons (340,700 cubic meters) are pumped daily to Orange County Water District's percolation basins in Anaheim where the GWRS water naturally filters through sand and gravel to the deep aquifers of the groundwater basin. Remaining outflows of treated wastewater from Plants No. 1 and No. 2 are combined and discharged to the ocean off the Huntington Beach coast through an outfall pipe that is 120 inches in diameter and approximately five miles long. The last mile of the outfall pipe is a diffuser with over 500 ports through which treated wastewater is slowly released at a depth of 200 feet. ECONOMIC CONDITIONS AND OUTLOOK In December 2024, Chapman University forecasted Orange County’s job growth at 0.8 percent for 2025, matching the U.S. outlook but trailing California’s 1.0 percent projection. For the overall 2020 to 2025 period, the county’s growth of 12.1 percent is nearly aligned with California’s 12.6 percent. However, cumulative growth over 2018 to 2023 amounted to only 1.7 percent. Orange County has also seen relatively weak gains in Advanced Industries compared to San Diego and Silicon Valley during the 2019 to 2023 period. OC ~SAN ORANGE COUNTY SANITATION DISTRICT iii The California Employment Development Department (EDD) reports that Orange County saw an increase of approximately 0.3 percent in payroll jobs from August 2024 to August 2025. During this same time period, unemployment in Orange County increased from 4.5 percent to 4.6 percent while the unemployment in California as a whole decreased from 5.9 percent to 5.8 percent. California’s economy is strongly supported by advanced industries including technology, aerospace, software, and medical products, which continue to grow faster than in other regions. These high-value jobs are vital to the state’s long-term economic health, especially amid ongoing population outflows. Chapman University projects that residential permits will rise by 12.9 percent in 2025, despite persistently high mortgage rates. Those elevated rates may actually be indirectly supporting new construction, as many homeowners are reluctant to sell and give up their locked-in “sweetheart” mortgages. This has resulted in a sharp decline in resale home sales, creating a shortage of existing homes on the market and boosting demand for new homes, which are often offered with subsidized financing. At the same time, countervailing forces are keeping home prices relatively steady. Chapman University forecasts a modest 1.1 percent decline in the median home price for 2025. While demand remains weak due to historically low housing affordability, supply is also constrained by the financial “penalty” homeowners would incur by giving up their low-rate mortgages. MAJOR INITIATIVES Following are the Orange County Sanitation District’s current major initiatives as outlined in the General Manager’s work plan for fiscal year (FY) 2025-26: 1. Business Principles  CIP Staffing Plan – Create a Capital Improvement Program (CIP) staffing plan by December 31, 2025, to minimize Supplemental Engineering Services, improve succession planning, and streamline the project delivery process.  Customer Service Portal – Complete the project Scope of Work, conduct a Request for Proposal, and award a contract to create a customer service portal by June 30, 2026. The portal will allow external stakeholders to access information, manage accounts, and interact with OC San’s services to improve convenience and service efficiency.  Small and Replacement Projects Funding Process Improvement – Develop a new process for funding small replacement and repair projects to create more transparency, efficiency, and budget control by December 31, 2025.  Operational AI Opportunities – Identify and prioritize opportunities to optimize OC San administrative, operational and treatment processes through the application of Artificial Intelligence (AI). This may include leveraging historical SCADA data, CMMS data, LIMs data, and potentially visual information for an AI system that can prompt operators by June 30, 2026.  Cybersecurity – Conduct a cyber penetration test and red team assessment of the process control systems by June 30, 2026.  Delinquent Fee Policies for Discharge Permits – Update OC San ordinances and policies regarding delinquent fees and penalties for discharge permits by March 31, 2026.  Digital Asset Management – Receive final technical memos for proposed asset database improvements and risk framework for major, critical assets by June 30, 2026.  Debt Financing – Identify and pursue debt refunding opportunities that reduce costs for OC San and its ratepayers. If refunding criteria are met, complete the transaction by March 31, 2026. 2. Environmental Stewardship  Vehicle Mobility Study – Conduct a study to right-size OC San’s transportation fleet and support OC ~SAN ORANGE COUNTY SANITATION DISTRICT iv compliance with clean air standards by June 30, 2026.  Fats, Oil, and Grease (FOG) Outreach – Develop updated Fats, Oils and Grease outreach and compliance materials for food service establishments within OC San service area by June 30, 2026.  Pretreatment Information Management System – Develop a Scope for Work for a Pretreatment Information Management System to replace the existing system by June 30, 2026.  Industrial Waste Survey – Update the Industrial Waste Survey program to utilize information management tools to gather business licensing information to more effectively identify sewer users that are required to have discharge permits by June 30, 2026. 3. Wastewater Management  Plant No. 1 Distributed Control System Human Machine Interface – (Carried over from FY 24/25) Transition Plant No. 1 to the ABB Distributed Control System under project J-120 by March 31, 2026.  Property Management – Conduct surveys of properties with identified encroachments or access limitations to OC San’s property rights by June 30, 2026.  Supercritical Water Oxidization – (Carried over from FY 24/25) Complete the six-month vendor demonstration of the six-ton Supercritical Water Oxidation unit by March 31, 2026.  Biosolids Deep Well Injection – (1) Initiate Phase 1 biosolids deep well injection permitting process by October 31, 2025, and (2) develop the outreach Scope of Work for Phase 1 of the biosolids deep well injection program by June 30, 2026.  High Flow Exercise – Develop and conduct a comprehensive high flow exercise by June 30, 2026, to evaluate Emergency Operation Center performance, processes, and operational efficiency. This exercise will simulate high influent wastewater emergencies and ruptures affecting the Santa Ana River Interceptor (SARI) trunkline to ensure preparedness and coordination among all relevant departments and agencies. 4. Workplace Environment  Physical Security Master Plan – Develop a physical security master plan based on findings from past audits and surveys with a focus on mitigating risk, compliance with applicable regulations and standards, and enhancing security measures in OC San facilities and operations by June 30, 2026.  Operator Certification Support – Develop and implement a wastewater laboratory and data science training curriculum to support wastewater operator certification by June 30, 2026.  Vocational Training – Investigate partnership opportunities with vocational training institutions to enhance workforce sourcing efforts, with a focus on addressing hard-to-fill positions by June 30, 2026. Strategic Planning In November 2023, the Board of Directors adopted a new comprehensive strategic plan to steer OC San’s efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to be pursued by OC San and provides a basis for long-term financial, capital, and operational planning. In addition, it provides for long-term continuity of vision as Board and staff members change over the many years it takes to deliver public works infrastructure. The Strategic Plan is updated every two years to align policy and execution expectations with OC San’s two-year budget cycle, and an updated Strategic Plan will be adopted in November 2025. OC ~SAN ORANGE COUNTY SANITATION DISTRICT v Driven by our Mission, Vision and Core Values, this Strategic Plan continues OC San’s efforts to protect the public health of the 2.6 million people we serve while protecting the environment where we live. The Strategic Plan is broken down into four broad categories with fifteen policy areas that define our responsibilities and the services we provide. These areas are:  Business Principles  Budget Control and Fiscal Discipline  Asset Management  Cybersecurity  Property Management  Organizational Advocacy and Outreach  Environmental Stewardship  Energy Independence  Climate and Catastrophic Event Resiliency  Food Waste Treatment  Water Reuse  Environmental Water Quality, Stormwater Management and Urban Runoff  Wastewater Management  Chemical Sustainability  Biosolids Management  Constituents of Emerging Concern  Workplace Environment  Resilient Staffing  Safety and Physical Security The Strategic Plan is not a radical departure from the current direction, but rather the well-defined iterative update to the direction of OC San. With the adoption of the Strategic Plan, staff also update the Asset Management Plan, Capital Improvement Plan, and Financial Plan that are the basis of the two-year budget adopted by the Board of Directors. The budget goals and the General Manager’s work plan are the accountability steps that measure achievable progress toward the strategic initiatives listed in the Strategic Plan. SERVICE EFFORTS AND ACCOMPLISHMENTS The following service efforts and accomplishments were achieved by OC San during the year ended June 30, 2025: • Award for Excellence for Outreach and Education - Heritage Museum Partnership - 2025- WateReuse Association • Certificate of Achievement for Excellence in Financial Reporting - 2025- Government Finance Officers Association • Platinum Peak Performance Awards for Plant Nos 1 and 2 - 2025- National Clean Waters Association • Achievement of Excellence in Procurement Award - 2025- National Procurement Institute OC ~SAN ORANGE COUNTY SANITATION DISTRICT vi • 2025- Santa Ana River Basin Section (SARBS) of the California Water Environment Association: o Community Engagement & Outreach Photography Award – Gold o Community Engagement & Outreach: Project of the Year – Silver – Los Alamitos Construction Project o Operator of the Year – Shaun Siddiqui o Safety Plant of the Year for Plant No. 1 • Golden Hub Award in Environmental Sustainability & Energy for OC San Headquarters - 2025 - Association of California Cities - Orange County • 2025- California Water Environment Association: o Community Engagement & Outreach Photography Award – First Place for Wastewater 101 2023 Photo o Community Engagement & Outreach Photography Award – Third Place for Wastewater 101 2024 Photo o Safety Plant of the Year for Plant No. 1 • Organizational Excellence Award for Employee Development Program - 2025- California Association of Sanitation Agencies • Outstanding Achievement in Popular Financial Reporting - 2025- Government Finance Officers Association • District Transparency Certificate of Excellence - 2024- Special District Leadership Foundation • Excellence in Information Technology Practices Award - 2024- Municipal Information Systems Association of California • Design & Print Silver Award for the CIP Annual Report - 2024- Davey Award • American Inhouse Design Award for CIP Annual Report, Community Newsletter and Keep It Flowing Brochure - 2024- Graphic Design USA • Corporate Organization Transformation Award - 2024- Institute of Asset Management North America • National Environmental Achievement Award for OC San Connection Newsletter and Employee Development Program - 2024- National Association of Clean Water Agencies • American Graphic Design Award for Open House Count Down and 70th Anniversary Campaign -2024- Graphic Design USA • Certificate of Excellence for 20 years of reporting municipal bonds - 2024- DAC Board • Distinguished Budget Presentation Award - 2024- Government Finance Officers Association OC ~SAN ORANGE COUNTY SANITATION DISTRICT vii ACCOUNTING AND BUDGETARY CONTROLS OC San’s accounting records are maintained on the accrual basis. In developing and evaluating OC San’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. We believe that OC San’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Each year, OC San’s Board of Directors adopts an annual operating plan. A joint works budget is first prepared that identifies the specific capital projects and operating activities to be undertaken by OC San during the year. The budgetary level of control, the level at which expenses cannot exceed budget, is exercised at the individual department level. OC San has adopted a Purchasing Ordinance that establishes requirements and procedures for the purchase of goods, services, and public work projects. ACCUMULATED FUNDS AND RESERVES POLICY The Board of Directors of the Orange County Sanitation District has established the following Accumulated Funds and Reserves Policy: Cash Flow Reserve: A cash flow criterion has been established at a level to fund operations, maintenance, and certificates of participation expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and the sewer service user fees which are collected as a separate line item on the property tax bill. The level of this criterion will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt certificate of participation (COP) service payments due in August each year. Operating Contingency Reserve: An operating contingency criterion has been established to provide for non-recurring operating expenditures that were not anticipated when the annual budget was considered and adopted. The level of this criterion has been established at an amount equal to ten percent of the current fiscal year’s annual operating budget. Capital Improvement Reserve: A capital improvement criterion has been maintained to fund annual increments of the capital improvement program (CIP). The target level of this criterion has been established at one half of the average annual cash outlay of the capital improvement program over the next ten years. Levels higher and lower than the target can be expected while the long-term financing and capital improvement programs are being finalized. Catastrophic Loss or Self-Insurance Reserves: A catastrophic loss or self-insurance criterion has been maintained for property damage including fire, flood, and earthquake, for general liability and for workers' compensation. This reserve criterion is intended to work with purchased insurance policies, FEMA, and state disaster reimbursements. Based on the plant infrastructure replacement value, the level of this criterion has been set to fund OC San’s non-reimbursed costs, estimated to be $100 million. Capital Replacement/Renewal Reserve Policy: A capital replacement/renewal criterion policy has been established to provide funding to replace or refurbish the current collection, treatment, and recycling facilities at the end of their useful economic lives. The current replacement value of these facilities is estimated to be $16 billion. The reserve criterion level had been established at $75 million. Debt Service Reserves: A debt service criterion policy has been established at ten percent of the outstanding COP and revenue obligations. Other debt service reserves are required to be under the control OC ~SAN ORANGE COUNTY SANITATION DISTRICT viii of a trustee by the provisions of the COP or revenue obligations. These funds are not available for the general needs of OC San and must be maintained at specified levels. Accumulated Funds exceeding the targets specified by OC San policy will be maintained for Capital Improvements and Rate Stabilization. These funds will be applied to future years' CIP needs due to the timing of the actual CIP outlays, in order to maintain rates or to moderate annual fluctuations. As of June 30, 2025, OC San was in compliance with the Accumulated Funds and Reserves Policy with designated cash and investments totaling $918 million, and have been earmarked for the following specific purposes in accordance with OC San’s reserve policy: Designated Cash and Investments Cash Flow Contingency $ 156 million Self-Insurance 100 million Capital Improvements 601 million Debt Service Requirements 61 million Total Designated Cash and Investments $ 918 million CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District for OC San’s Annual Comprehensive Financial Report for the year ended June 30, 2024. This was the thirty-first consecutive year that OC San has received this award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS This report could not have been completed without the dedicated services of the Financial Management Division staff, and I would like to especially express my appreciation to the staff who assisted in its preparation. I would also like to thank OC San’s Board of Directors and the General Manager for their interest and support in conducting the financial operations of OC San in a responsible and progressive manner. Respectfully submitted, Ruth Zintzun Finance Manager 0 ~SAN ORANGE COUNTY SANITATION DISTRICT ix Govenunent Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Orange County Sanitation District California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30 2024 ~P-~ Executive Director/CEO x ORANGE COUNTY SANITATION DISTRICT Board of Directors As of June 30, 2025 enc ctive Director lternate Director Cities: Anaheim Carlos A. Leon Ryan Balius Brea Christine Marick Cecilia Hupp Buena Park Joyce Ahn Lamiya Hoque Cypress Scott Minikus Bonnie Peat Fountain Valley Glenn Grandis Ted Bui Fullerton Jaimie Valencia Shana Charles Garden Grove Stephanie Klopfenstein Cindy Ngoc Tran Huntington Beach Pat Burns Gracey Van Der Mark Irvine Melinda Liu Kathleen Treseder La Habra Jose Medrano Rose Espinoza La Palma Debbie Baker Vikesh Patel Los Alamitos Jordan Nefulda Tanya Doby Newport Beach Erik Weigand Michelle Barto Orange Jon Dumitru John Gyllenhammer Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Jessie Lopez Seal Beach Lisa Landau Ben Wong Stanton David Shawver John D. Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Jordan Wu Kell McBride Sanitar Water Districts: Costa Mesa Sanitary District Robert Ooten rt Perry Midway City Sanitary District Andrew Nguyen Tyler Diep Irvine Ranch Water District John Withers Dan Ferons Yorba Linda Water District Tom Lindsey Gene Hernandez Count Areas: Member of the Board of Supervisors Doug Chaffee Janet Nguyen xi ORANGE COUNTY SANITATION DISTRICT Organizational Chart As of June 30, 2025 Communications Department Communications Administration Board Services Public Affairs Human Resources Department Human Resources Administration Human Resources Risk Management Administrative Services Department Administrative Services Financial Management Contracts, Purchasing & Materials Management Information Technology Facilities Maintenance General Counsel Office Environmental Services Department Environmental Services Administration Resource Protection Laboratory & Ocean Monitoring Environmental Compliance Engineering Department Engineering Administration Planning Project Management Office Design Construction Management Operations & Maintenance Department O&M Administration Collection Facilities Maintenance Support Services Plant No. 1 Operations Plant No. 2 Operations Plant No. 1 Maintenance Plant No. 2 Maintenance xii ORANGE COUNTY SANITATION DISTRICT Map of Service Area As of June 30, 2025 LA HABRA BREA BYENA-----R RK S.T-ANTON -Service Area Boundary Sewer Pipelines Reclamation Plant No. 1 (P1) Reclamation Plant No. 2 (P2) ■ Pump Stations D Unincorporated Orange County (white areas) /RV/NE N A 0 2 4 1111111-==---M&les Appr011lmatel)' -Map Not to 5cale DCSaAJMER: Map p,l!j)O(ed Ill' the Orafl:e COUnly S8nlt8tl0n DiSlr1CI. Ti.s map ts lrcended for 8f8l)hlcal rep,eseniauon only. No le\'81 OI acancylsclalmed. Ponlot!sOl lltlSdefMd p,oduct contain geos,a~ lnfO<mlltlon ~ l>)'TomTom.e IR;glltsReseM!d. Re.tsecl December 202A eidebailly.com 25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Auditor’s Report To the Board of Directors Orange County Sanitation District Fountain Valley, California Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Orange County Sanitation District (OC San), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise OC San’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of OC San as of June 30, 2025, and the changes in financial position, and its cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of OC San, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 11 to the financial statements, OC San has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences for the year ended June 30, 2025. Accordingly, a restatement has been made as of July 1, 2024 to restate beginning net position. Our opinion is not modified with respect to this matter. ..-..Eide ~Badly Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about OC San’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of OC San’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about OC San’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 2 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Proportionate Share of the Net Pension Liability (Asset) – OCERS Pension Plan, Schedule of District Contributions – OCERS Pension Plan, Total Pension Liability – Additional Retiree Benefit Account, Changes in Total Pension Liability – Additional Retiree Benefit Account, Total OPEB Liability – Post-Employment Medical Benefits Plan, and Changes in Total OPEB Liability – Post- Employment Medical Benefits Plan be presented to supplement the basic financial statements. Such information is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise OC San’s basic financial statements. The Combining Area Schedule of Net Position, Combining Area Schedule of Revenues, Expenses, and Change in Net Position, and Combining Area Schedule of Cash Flows are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining Area Schedule of Net Position, Combining Area Schedule of Revenues, Expenses, and Change in Net Position, and Combining Area Schedule of Cash Flows are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section, Statistical Section, and Other Data and Trends but does not include the basic financial statements and our auditor’s report thereon. Our opinion on the basic financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 28, 2025, on our consideration of OC San’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of OC San’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering OC San’s internal control over financial reporting and compliance. Laguna Hills, California October 28, 2025 4 ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 5 This section of the financial statements of the Orange County Sanitation District (OC San) is management’s narrative overview and analysis of the financial activities of OC San for the fiscal year ended June 30, 2025. The information presented here is to be considered in conjunction with additional information provided within the letter of transmittal located in the Introductory Section of this report. Financial Highlights As of June 30, 2025, OC San’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $3.4 billion (net position). Of this amount, $899.5 million represents unrestricted net position, which may be used to meet OC San’s ongoing obligations to citizens and creditors. Total net position increased $195.8 million, or 6.2 percent over the prior year. Net capital assets, consisting of non-depreciable capital assets and depreciable capital assets net of accumulated depreciation, increased $111.5 million, or 3.7 percent over the prior year. Net investment in capital assets increased $148.8 million, or 6.6 percent over the prior year. Restricted net position increased $19.6 million, or 57.2 percent over the prior year. Unrestricted net position increased $27.3 million, or 3.1 percent over the prior year. Total outstanding bonded debt decreased by $34.1 million, or 5.6 percent from the prior year, to $572.0 million. Overview of the Basic Financial Statements OC San operates as a utility enterprise and presents its financial statements using the economic resources measurement focus and the full accrual basis of accounting. As an enterprise fund, OC San’s basic financial statements are comprised of two components: financial statements and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. In accordance with the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards, OC San’s financial statements include a Statement of Net Position; Statement of Revenues, Expenses, and Change in Net Position; and a Statement of Cash Flows. The Statement of Net Position includes OC San’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources; and provides information about the nature and amounts of investments in resources (assets) and the obligations to OC San’s creditors (liabilities). It also provides the basis for computing the rate of return, evaluating the capital structure of OC San, and assessing the liquidity and financial flexibility of OC San. The Statement of Revenues, Expenses, and Change in Net Position accounts for the current year’s revenues and expenses. This statement measures the success of OC San’s operations over the past year and can be used to determine OC San’s creditworthiness. It also highlights OC San’s dependency on property tax revenues in supplementing user fees and other charges for recovering total cost. The final required financial statement, the Statement of Cash Flows, reports cash receipts, cash payments, and net changes in cash resulting from operations, investments, and financial activities of the reporting period. ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 6 Net Position As previously noted, net position increased $195.8 million, or 6.2 percent over the net position at June 30, 2024, to $3.4 billion at June 30, 2025. Effective July 1, 2024, OC San implemented GASB Statement No. 101, Compensated Absences. As a result of this change in accounting principle, it was not appropriate for OC San to restate prior-period information for earlier periods than those presented in the basic financial statements. Therefore, information for the year ended June 30, 2024, was not restated. See Note 11 to the financial statements for further information on the change in accounting principle. (Dollars in thousands) Assets Current and other assets 1,009,817$ 919,344$ 90,473$ 9.8% Net capital assets 3,104,846 2,993,396 111,450 3.7% Total assets 4,114,663 3,912,740 201,923 5.2% Deferred outflows of resources 71,537 97,104 (25,567) -26.3% Total assets and deferred outflows of resources 4,186,200 4,009,844 176,356 4.4 Liabilities Current liabilities 172,480 146,735 25,745 17.5% Noncurrent liabilities 619,370 664,213 (44,843) -6.8% Total liabilities 791,850 810,948 (19,098) -2.4% Deferred inflows of resources 21,104 21,449 (345) -1.6% Total liabilities and deferred inflows of resources 812,954 832,397 (19,443) -2.3% Net position Net investment in capital assets 2,419,796 2,270,960 148,836 6.6% Restricted for OCERS pension benefits 53,901 34,278 19,623 57.2% Unrestricted 899,549 872,209 27,340 3.1% Total net position 3,373,246$ 3,177,447$ 195,799$ 6.2% Increase (Decrease) Percentage Increase (Decrease) June 30, 2024 June 30, 2025 ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 7 Current and other assets increased $90.5 million, or 9.8 percent, due primarily to net cash provided by operations of $135.9 million, proceeds from property taxes of $138.3 million, unrealized investment gains of $29.7 million, interest received of $23.7 million, an increase in net pension asset of $18.1 million, receipt of capital facilities capacity charges of $14.9 million, contributions from other governments of $13.9 million, and an increase in due from other governmental agency of $1.5 million, offset by capital outlays of $228.3 million, bonded debt retirements of $34.1 million, and interest paid of $24.9 million. Net capital assets increased $111.5 million, or 3.7 percent, due mostly to the ongoing capital improvement program construction in progress additions of $232.1 million, land addition of $27.5 million, capital equipment of $8.9 million, and subscription right-to-use assets of $2.6 million, offset by depreciation of $129.2 million, and loss on asset disposals of $0.9 million. Included in total capital outlay additions is the Headworks Rehabilitation at Plant 1 with incurred project costs of $37.8 million in FY 2024-25 and a total project budget of $340.0 million. The Primary Treatment Rehabilitation at Plant No. 2 incurred project costs of $26.0 million in FY 2024-25 with a total project budget of $188.0 million. See page 9 for the Schedule of Capital Assets and listing of other major capital additions for FY 2024-25. Deferred outflows of resources decreased $25.6 million, or 26.3 percent from the prior year, primarily due to a $23.8 million or 28.2 percent decrease in pension deferred outflows attributable to the change in projected and actual earnings on pension plan investments and changes of actuarial assumptions and other inputs, and a $1.3 million or 14.6 percent decrease in the difference between carrying amount of the retired debt and the acquisition price of COP Series. Current liabilities increased $25.7 million, or 17.5 percent, due to an increase of $14.0 million in accounts payable, $12.1 million in the amount due to other governmental agency Irvine Ranch Water District (IRWD), $2.2 million in interest payable, and $1.5 million in other current liabilities, offset by a decrease of $4.1 million in retentions payable. Noncurrent liabilities decreased $44.8 million, or 6.8 percent, primarily due to bonded debt repayments of $34.1 million and premium amortization of $12.1 million. Deferred inflows of resources decreased $0.3 million, or 1.6 percent over the prior year, primarily due to a $1.3 million or 19.8 percent decrease in the difference between carrying amount of the retired debt and the acquisition price of COP Series, and a $0.3 million decrease in deferred inflows related to leases, offset by a $1.3 million or 9.1 percent increase in pension deferred inflows attributable to the change in projected and actual earnings on pension plan investments and differences between expected and actual experiences. Net investment in capital assets increased $148.8 million, or 6.6 percent over the prior year, primarily as a result of the net increase in capital assets of $111.5 million coupled with a $37.4 million decrease in related debt. Restricted net position increased $19.6 million, or 57.2 percent, due to the increase in amounts restricted for Orange County Employees Retirement System (OCERS) pension benefits. Unrestricted net position increased $27.3 million, or 3.1 percent, due to the overall increase in net position of $195.8 million, offset by the increase in net investment in capital assets of $148.8 million and restricted net position of $19.6 million. ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 8 Change in Net Position The change in net position increased $2.4 million in FY 2024-25, or 1.2 percent over the prior year’s increase in net position. Effective July 1, 2024, OC San implemented GASB Statement No. 101, Compensated Absences. As a result of this change in accounting principle, it was not appropriate for OC San to restate prior-period information for earlier periods than those presented in the basic financial statements. Therefore, information for the year ended June 30, 2024, was not restated. See Note 11 to the financial statements for further information on the change in accounting principle. (Dollars in thousands) Revenues: Operating revenues Service charges 353,233$ 338,713$ 14,520$ 4.3% Permit and inspection fees 1,178 941 237 25.2% Total operating revenues 354,411 339,654 14,757 4.3% Non-operating revenues Property taxes 138,312 131,608 6,704 5.1% Investment and interest income (loss) 53,006 46,640 6,366 13.6% Contrib. from other governments 19,543 29,395 (9,852) -33.5% Other non-operating revenues 1,748 6,548 (4,800) -73.3% Total non-operating revenues 212,609 214,191 (1,582) -0.7% Total revenues 567,020 553,845 13,175 2.4% Expenses: Operating expenses other than depreciation and amortization 237,926 222,673 15,253 6.8% Depreciation and amortization 130,246 116,205 14,041 12.1% Non-operating expenses 16,598 35,454 (18,856) -53.2% Total expenses 384,770 374,332 10,438 2.8% Income before capital contributions 182,250 179,513 2,737 1.5% Capital contributions 17,918 18,242 (324) -1.8% Increase in net position 200,168 197,755 2,413 1.2% Beginning net position, restated 3,173,078 2,979,692 193,386 6.5% Ending net position 3,373,246$ 3,177,447$ 195,799$ 6.2% June 30, 2025 June 30, 2024 Increase (Decrease) Percentage Increase (Decrease) ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 9 As previously stated, an enterprise fund is used to account for the operations of OC San, which is financed and operated in a manner similar to private business enterprises. This allows OC San to determine that the costs (expenses, including depreciation and amortization) of providing wastewater management services on a continuing basis are financed or recovered primarily through user charges. Sewer service user fees are evaluated annually based primarily on budget requirements for total operation and maintenance expenses and capital outlays for providing wastewater management services. Property tax revenues are dedicated for the payment of debt service. Operating revenues increased $14.8 million, or 4.3 percent in FY 2024-25 from the prior year, primarily due to a 3.6 percent increase in the average sewer user fee rate and a slight increase in other operating revenues as compared to the prior year. Non-operating revenues decreased $1.6 million, or 0.7 percent, primarily due to a $9.9 million or 33.5 percent decrease in contributions from other governments due to the integration adjustment of Revenue Area 14’s equity share in OC San’s Joint Works Treatment Facilities based on the flows discharged to OC San, and a $4.8 million or 73.3 percent decrease in other revenues mainly as a result of insurance recoveries in the prior year, offset by an increase of $6.7 million or 5.1 percent increase in property taxes revenue attributable to increased home sales and a rise in total assessed valuation of 5.1 percent over the prior year, and a $6.4 million or 13.6 percent growth in investment and interest income as a result of higher yields on balances held in the investment portfolios. Operating expenses other than depreciation and amortization increased $15.3 million, or 6.8 percent, primarily due to increases of $8.6 million or 9.0 percent in salaries and benefits, $4.6 million or 15.0 percent in contractual services, and $2.7 million in feasibility studies over the prior year, offset by decreases of $0.4 million in other operating expenses and $0.3 million in supplies, repairs and maintenance. Non-operating expenses decreased $18.9 million, or 53.2 percent, primarily from a decrease of $15.4 million or 49.6 percent in interest expense, and a decrease of $3.5 million or 80.8 percent in loss from disposal of assets. Capital contributions decreased $0.3 million, or 1.8 percent from the prior year, primarily due to a decrease of $0.3 million in capital contributions from other governments. 63% 24% 9%4% Sources of Revenue June 30, 2025 User Fees Taxes Levied Interest Income Other 12% 50% 34% 4% Functional Expenses June 30, 2025 Collection System Treatment & Disposal Depreciation & Amortization Interest Expense • • • • • • • ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 10 Capital Assets At June 30, 2025, OC San had a net investment of $3.1 billion in capital assets. This represents a net increase (including additions and deletions) of $111.5 million, or 3.7 percent over the prior year. Major capital asset additions for the current fiscal year included the following: $37.8 million Headworks Rehabilitation at Plant No. 1 (P1-105) $26.0 million Primary Treatment Rehabilitation at Plant No. 2 (P2-98) $19.0 million Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation (7-65) $18.2 million Bay Bridge Pumping Station Replacement (5-67) $15.4 million Seal Beach Pump Station Replacement (3-67) $9.6 million Central Generation Engine Overhauls at Plants 1 and 2 (J-135) $9.4 million Ocean Outfall System Rehabilitation (J-117) $7.9 million TPAD Digester Facility at Plant 2 (P2-128) $7.4 million Activated Sludge-1 Aeration Basin & Blower Rehabilitation at Plant No. 1 (P1-140) $6.4 million Primary Sediment Basins No. 3-5 Replacement at Plant No. 1 (P1-126) More detailed information about OC San’s capital assets is provided in Notes 1 and 3 of the Notes to Basic Financial Statements. (Dollars in thousands) Land 85,653$ 58,153$ 27,500$ 47.3% Construction in progress 829,663 677,082 152,581 22.5% Sewage collection facilities 539,002 531,090 7,912 1.5% Sewage treatment facilities 1,435,615 1,500,387 (64,772) -4.3% Effluent disposal facilities 23,239 24,611 (1,372) -5.6% Solids disposal facilities 219 229 (10) -4.4% General and administrative facilities 188,195 199,883 (11,688) -5.8% Lease right-to-use asset 67 104 (37) -35.6% Subscription right-to-use assets 3,193 1,857 1,336 71.9% Capital assets, net 3,104,846$ 2,993,396$ 111,450$ 3.7% Schedule of Capital Assets (Net of Depreciation and Amortization) June 30, 2025 June 30, 2024 Increase (Decrease) Percentage Increase (Decrease) ORANGE COUNTY SANITATION DISTRICT Management Discussion and Analysis (Unaudited) June 30, 2025 11 Debt Administration At June 30, 2025, OC San had $572.0 million outstanding in bonded debt, a net decrease of $34.1 million, or 5.6 percent from the prior year. This reduction consisted of the accumulation of principal payments made in accordance with the schedule of debt service payments. During OC San’s most recent debt refunding, Moody’s, Standard and Poor’s, and Fitch Ratings all reaffirmed their AAA rating of the Orange County Sanitation District. OC San’s long-range financing plan is designed to maintain this high rating. Over the next ten years, OC San is projecting over $3.5 billion in capital improvements. In accordance with OC San’s long-term debt fiscal policy, OC San will restrict long- term borrowing to capital improvements that cannot be financed from current revenue. No new debt issuances are being proposed to assist with the funding of the system improvements scheduled over this time period. For more information on long-term debt activities, see Note 5 of the Notes to Basic Financial Statements. Economic Factors and Next Year’s Budgets and Rates The unemployment rate within the County of Orange is at 4.5 percent in June 2025, an increase from the rate of 4.0 percent in June 2024. Inflation for the Los Angeles-Long Beach-Anaheim area increased 3.2 percent in June 2025 over the prior year June 2024 based on the actual percentage change in the consumer price index according to the U.S. Department of Labor, Bureau of Labor Statistics. The yield on investments decreased from the 4.8 percent earnings rate in FY 2023-24 to 2.8 percent for FY 2024-25. All of these factors are considered in preparing OC San’s biennium budget. OC San’s user fee schedule was increased by 3.6 percent for FY 2024-25 over the prior year. The Single Family Residential (SFR) fee, which is the underlying rate for all other user rates, is applicable to OC San’s largest customer base and increased by $13.00, from $358.00 to $371.00. The revenue from sewer fees is necessary to support OC San’s cash flow needs for operating costs, debt service, and capital improvement outlays. Capital improvement costs are projected to total $3.5 billion over the next ten years in order to rehabilitate and upgrade existing facilities and maintain full secondary treatment standards. Requests for Information The financial report is designed to provide a general overview of OC San’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Financial Management Division, Orange County Sanitation District, 18480 Bandilier Circle, Fountain Valley, CA 92708. (THIS PAGE INTENTIONALLY LEFT BLANK) 12 ORANGE COUNTY SANITATION DISTRICT BASIC FINANCIAL STATEMENTS 13 ORANGE COUNTY SANITATION DISTRICT Statement of Net Position June 30, 2025 Current assets: Cash and cash equivalents 129,984,551$ Investments 770,902,021 Accounts receivable, net of allowance for uncollectibles 9,544,419 Accrued interest receivable 5,795,182 Connection fees receivable 3,371,695 Property tax receivable 2,149,756 Lease receivable, current portion 396,114 Inventories 12,620,950 Prepaid expenses 2,693,612 Total current assets 937,458,300 Noncurrent assets: Restricted: Cash and cash equivalents 701,418 Investments 16,882,220 Accrued interest receivable 1,332 Net pension asset - OCERS 36,606,252 Unrestricted: Non-depreciable capital assets 915,315,754 Depreciable capital assets, net of accumulated depreciation 2,189,530,195 Due from other governmental agency 18,067,430 Lease receivable, noncurrent portion 89,605 Other noncurrent assets, net 10,344 Total noncurrent assets 3,177,204,550 Total assets 4,114,662,850 Deferred outflows of resources: Deferred outflows related to refundings 7,519,718 Deferred outflows related to pensions 60,347,568 Deferred outflows related to OPEB 3,670,306 Total deferred outflows of resources 71,537,592 Total assets and deferred outflows of resources 4,186,200,442 Current liabilities: Accounts payable and accrued expenses 59,502,862 Retentions payable 10,991,447 Interest payable 11,292,100 Due to other governmental agency 30,307,007 Long-term obligations, current portion 58,408,438 Total pension liability - ARBA, current portion 1,233,691 Total OPEB liability, current portion 744,627 Total current liabilities 172,480,172 Noncurrent liabilities: Long-term obligations, noncurrent portion 598,572,064 Total pension liability - ARBA, noncurrent portion 17,132,806 Total OPEB liability, noncurrent portion 3,664,701 Total noncurrent liabilities 619,369,571 Total liabilities 791,849,743 Deferred inflows of resources: Deferred inflows related to leases 435,610 Deferred inflows related to refundings 5,438,617 Deferred inflows related to pensions 14,996,877 Deferred inflows related to OPEB 233,331 Total deferred inflows of resources 21,104,435 Total liabilities and deferred inflows of resources 812,954,178 Net position: Net investment in capital assets 2,419,795,860 Restricted for OCERS pension benefits 53,900,943 Unrestricted 899,549,461 Total net position 3,373,246,264$ See Accompanying Notes to Basic Financial Statements. 14 ORANGE COUNTY SANITATION DISTRICT Statement of Revenues, Expenses, and Change in Net Position For the Year Ended June 30, 2025 Operating revenues: Service charges 353,232,695$ Permit and inspection fees 1,178,008 Total operating revenues 354,410,703 Operating expenses other than depreciation and amortization: Salaries and benefits 104,583,096 Utilities 15,018,906 Supplies, repairs and maintenance 64,662,231 Contractual services 34,887,066 Feasibility studies 7,160,444 Other operating expenses 11,614,175 Total operating expenses other than depreciation and amortization 237,925,918 Operating income before depreciation and amortization 116,484,785 Depreciation and amortization 130,246,378 Operating income (13,761,593) Non-operating revenues: Property taxes 138,312,275 Investment and interest income 53,005,890 Contributions from other governments 19,543,277 Other non-operating revenues 1,747,821 Total non-operating revenues 212,609,263 Non-operating expenses: Interest 15,662,820 Loss on disposal of assets 830,244 Other non-operating expenses 104,905 Total non-operating expenses 16,597,969 Income before capital contributions 182,249,701 Capital contributions: Capital facilities capacity charges 16,265,667 Capital contributions from other governments 1,652,443 Total capital contributions 17,918,110 Change in net position 200,167,811 Net position - beginning, as previously reported 3,177,447,066 Adjustments (Note 11)(4,368,613) Total net position - beginning, as restated 3,173,078,453 Total net position - ending 3,373,246,264$ See Accompanying Notes to Basic Financial Statements. 15 ORANGE COUNTY SANITATION DISTRICT Statement of Cash Flows For the Year Ended June 30, 2025 Cash flows from operating activities: Receipts from customers and users 367,091,990$ Payments to employees (97,652,500) Payments to suppliers (134,862,878) Receipts for other activities 1,312,345 Net cash provided by operating activities 135,888,957 Cash flows from noncapital financing activities: Proceeds from property taxes 138,281,437 Net cash provided by noncapital financing activities 138,281,437 Cash flows from capital and related financing activities: Capital facilities capacity charges 14,893,451 Contributions from other governments 13,900,874 Receipts from lease agreements 472,607 Additions to capital assets (228,295,795) Principal payments on debt obligations (34,085,000) Interest paid (24,922,546) Net cash used in capital and related financing activities (258,036,409) Cash flows from investing activities: Proceeds from sale of investments 759,603,700 Purchases of investments (792,757,084) Interest received 23,720,307 Net cash used in investing activities (9,433,077) Net increase in cash and cash equivalents 6,700,908 Cash and cash equivalents, beginning of year 123,985,061 Cash and cash equivalents, end of year 130,685,969$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)(13,761,593)$ djustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 130,246,378 Other non-operating revenues 1,207,440 (Increase)/decrease in operating assets and deferred outflows: ccounts receivable 603,794 Inventories (1,099,297) Prepaid expenses (273,292) Net pension asset - OCERS (18,074,715) Deferred outflows related to pensions 23,751,355 Deferred outflows related to OPEB 531,928 Increase/(decrease) in operating liabilities and deferred inflows: ccounts payable and accrued expenses 2,411,455 Due to other governmental agency 12,077,493 Compensated absences 687,232 Claims and judgments (266,854) Total pension liability - ARBA (2,647,182) Total OPEB liabilit (773,160) Deferred inflows related to pensions 1,034,644 Deferred inflows related to OPEB 233,331 Net cash provided by operating activities 135,888,957 Noncash activities: Unrealized gain (loss) on the fair value of investments 29,667,855$ Capital assets acquired through accounts payable 6,882,913 Capital facilities capacity charges acquired 1,372,216 See Accompanying Notes to Basic Financial Statements. 16 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements For the Year Ended June 30, 2025 17 (1) Summary of Significant Accounting Policies Reporting Entity The Orange County Sanitation District (OC San) is a public agency which owns and operates certain wastewater facilities in order to provide regional wastewater collection, treatment, and disposal services to approximately 2.6 million people in the central and northwest portion of the County of Orange, California. OC San is overseen by a Board comprised of directors appointed by the agencies and cities which are serviced by OC San. OC San’s service area was originally formed in 1954 pursuant to the County Sanitation District Act and consisted of seven independent special districts. Two additional districts were formed and additional service areas were added in 1985 and 1986. These special districts were jointly responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the existing nine special districts into a new, single sanitation district. This action was taken in order to simplify the governance structures, reduce the size of OC San’s Board of Directors, ease administrative processes, streamline decision-making, and consolidate accounting and auditing processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor special districts transferred and assigned all of their powers, rights, duties, obligations, functions, and properties to OC San, including all assets, liabilities, and equity. Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of one of the previous districts, now known as Revenue Area No. 14, have been maintained separately because their use of OC San’s collection, treatment, and disposal system is funded by the Irvine Ranch Water District (IRWD). The boundaries of the other eight districts have been consolidated and are collectively referred to as the Consolidated Revenue Area. OC San utilizes joint operating and capital outlay accounts to pay joint treatment, disposal, and construction costs. These joint costs are allocated to each revenue area based on gallons of sewage flow. The supplemental schedules and statements show internal segregations and are not intended to represent separate funds for presentation as major or non-major funds in the basic financial statements. The accompanying financial statements present OC San and its blended component unit, the Orange County Sanitation District Financing Corporation (Corporation). The Corporation is a legally separate entity although in substance it is considered to be part of OC San’s operations. OC San is considered to be financially accountable for the Corporation which is governed by a board comprised entirely of OC San’s board members. There is no requirement for separate financial statements of the Corporation; consequently, separate financial statements for the Corporation are not prepared. The Corporation had no financial activity during the fiscal year ended June 30, 2025, other than principal and interest payments on outstanding certificates of participation and revenue obligations (see Note 5). OC San is independent of and overlaps other formal political jurisdictions. There are many governmental entities, including the County of Orange, that operate within OC San’s jurisdiction; however, financial information for these entities is not included in the accompanying financial statements in accordance with the Governmental Accounting Standards Board (GASB). ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 18 Measurement Focus and Basis of Accounting OC San operates as an enterprise activity. Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the Board of Directors is that the costs (expenses, including depreciation and amortization) of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Enterprise funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows. The accounting policies of OC San conform to the Generally Accepted Accounting Principles (GAAP) in the United States of America as applicable to governments. The GASB is the accepted standard- setting body for establishing governmental accounting and financial reporting principles in the United States. Operating Plans Each year, OC San staff prepares an annual operating plan which is adopted by the Board of Directors. The annual operating plan is used to serve as a basis for monitoring financial progress, estimating the levy and collection of taxes, and determining future service charge rates. During the year, these plans may be amended as circumstances or levels of operation dictate. Cash and Cash Equivalents Investments with original maturities of three months or less when purchased, money market mutual funds, and external investment pools that can be withdrawn on demand are considered to be cash equivalents. Investments Investments are stated at fair value (the price that would be received to sell an asset in an orderly transaction between market participants acting in their economic best interest at the measurement date). Changes in fair value that occur during the fiscal year are reported as part of investment and interest income. Investment and interest income include interest earnings and realized and unrealized gains or losses in fair value. Investment and interest income are recorded as revenues and receivables when declared and realized gains or losses are recorded when the investment is sold. Accounts Receivable Accounts receivable is reported net of the allowance for uncollectible receivables. There were no uncollectible receivables at June 30, 2025. Unbilled sewer services through June 30, 2025, are recorded as revenue and receivables. Management determines the allowance for uncollectible receivables by evaluating individual accounts receivable at least one year past due and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivables are written off when deemed uncollectible. Recoveries of accounts receivables previously written off are recorded when received. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 19 Inventories Inventories, which are held for consumption and not resale, are stated at cost on a weighted-average basis and are expensed when used. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses. Prepaid expenses are recorded as expenses when consumed rather than when purchased. Capital Assets Outlays for property, plant, equipment, and construction in progress are recorded in the revenue area which will use the asset. Such outlays may be for individual revenue area assets or for a revenue area’s share of joint assets. Capital assets of property, plant, and equipment are defined as assets with an initial, individual cost of $15,000 or more and an estimated useful life of at least three years. Such assets are recorded at cost, except for donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement, which are recorded at acquisition value at the time received. Cost includes labor, materials, outside services, vehicle and equipment usage, and other ancillary costs consisting of direct charges such as engineering, purchasing, supervision, or fringe benefits. Depreciation of plant and equipment is provided for over the estimated useful lives of the assets using the straight-line method in accordance with generally accepted accounting principles. OC San also considers the guidelines of estimated useful lives as recommended in the State of California Controller’s Uniform System of Accounts for Waste Disposal Districts, which range from 3 to 75 years. The following are estimated useful lives for major classes of depreciable assets: Sewage collection facilities – 50 years, Sewage treatment facilities – 40 years, Sewage disposal facilities – 40 years, General plant and administrative structures – 40 years, and other General plant and administrative facilities and equipment – 4 to 25 years. Lease and subscription right-to-use assets are defined as assets with an initial, individual cost of more than $50,000 and an estimated useful life of at least one year. Such assets are recorded at the present value of the lease or subscription liability and are amortized using the straight-line method over the term, which range from 1 to 5 years. Restricted Assets Certain assets are classified as restricted because their use is limited by applicable debt covenants or other legal agreements. Restricted cash and investments are maintained in separate trustee bank accounts. When both restricted and unrestricted resources are available for use, it is OC San’s policy to use restricted resources first, then unrestricted resources as they are needed, except in the case of restricted amounts in the Section 115 pension trust, for which OC San will specifically identify amounts to be utilized to fund OCERS pension benefits. Amortization Premiums on wastewater refunding revenue obligations are amortized to interest expense over the respective terms of the installment obligations based on the effective interest method (Note 5). ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 20 Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. OC San has four items that qualify for reporting in these categories; related to refundings, pensions, Other Post-Employment Benefits (OPEB), and leases. For refundings resulting in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a deferred inflow of resources and amortized to interest expense based on the effective interest method over the remaining life of the old debt or the life of the new debt, whichever is shorter. Deferred outflows and inflows related to pensions and OPEB represent differences between estimated and actual investment earnings, changes in actuarial assumptions, and other related changes. Deferred inflows related to leases is associated with the lease receivable from building lease agreements, which is recognized as revenue over the life of the lease terms. Net Position Net position represents the total of assets and deferred outflows of resources less liabilities and deferred inflows of resources, and is classified into three categories: Net Investment in Capital Assets – This amount consists of capital assets, net of accumulated depreciation/amortization and reduced by the outstanding balances of borrowings or other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Restricted – This amount consists of restricted assets for which constraints are placed on asset use either by external parties or by laws or regulations of other governments. OC San’s restricted net position reflects restricted cash and investments and accrued interest in the pension trust and the OCERS net pension asset. Unrestricted – This amount represents the residual of amounts not classified in the other category and represents the net position available for OC San. Compensated Absences OC San’s employees, other than operations and maintenance personnel, are granted vacation and sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation and sick days earned but unused, respectively. Operations and maintenance personnel accrue between 80 and 250 personal leave hours per year depending on years of service, which can be accumulated up to a maximum of 440 hours. All accrued and unused vacation or personal leave is paid to the employee upon termination or retirement of the employee. Accrued and unused sick leave is paid to the employee at a percentage rate based on years of service, as stated in the Memorandum of Understanding for each bargaining group. Vacation and sick leave benefits and personal days are recorded as an expense and liability when earned by eligible employees. The distribution between current and long-term portions of the liability is based on historical trends. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 21 Claims and Judgments OC San records estimated losses when it is probable that a claim liability has been incurred and when the amount of the loss can be reasonably estimated. Claims payable includes an estimate for incurred but unreported claims. The distribution between current and long-term portions of the liability is based on historical trends. Pensions OC San has two defined benefit pension plans for retirees: the plan maintained through and by the Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account (ARBA) administered directly by OC San. For purposes of measuring the net pension asset/liability, deferred outflows of resources related to pensions, deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of OC San’s cost sharing multiple-employer plan with the OCERS plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by OCERS. Benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Deferred outflow and inflow of resources related to pensions result from changes in the components of the net pension asset/liability and are applicable to a future reporting period (Note 6). Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at one percent of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. OC San receives a share of this basic levy, proportionate to what was received in the 1976 to 1978 period. Property taxes are determined annually and attached as enforceable liens on real property as of January 1 and are payable in two installments which become delinquent after December 10 and April 10. The County bills and collects the property taxes and remits them to OC San in installments during the year. Property tax revenues are recognized when levied. The Board of Directors has designated property tax revenue to be used for the annual debt service requirements prior to being used as funding for current operations. Capital Facilities Capacity Charges Capital facilities capacity charges represent fees imposed at the time a structure is newly connected to OC San’s system, directly or indirectly, or an existing structure or category of use is increased. This charge is to pay for OC San facilities in existence at the time the charge is imposed or to pay for new facilities to be constructed that are of benefit to the property being charged. Operating and Non-operating Revenues and Expenses Operating revenues and expenses result from collecting, treating, and disposing of wastewater and inspection and permitting services. OC San’s operating revenues consist of charges to customers for the services provided. Operating expenses include the cost of providing these services, administrative expenses, and depreciation and amortization expenses. All revenues and expenses not meeting these definitions, and which are not capital in nature, are reported as non-operating revenues and expenses. Self-Insurance Plans For the year ended June 30, 2025, OC San was self-insured for portions of workers’ compensation, property damage, and general liability. The self-insurance portion of the workers’ compensation exposure is the $1 million deductible per occurrence under the outside excess insurance coverage ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 22 to statutory levels. The self-insurance portion of the property damage exposure covering fire and other perils is the $500,000 per occurrence deductible (for most perils) under the outside excess property insurance coverage to $1 billion. The self-insurance portion of the property damage exposure covering flood is the $1 million per occurrence deductible with outside excess property insurance coverage to $25 million. The self-insurance portion of the property damage exposure covering earthquake is the 5% per structure, minimum $5 million deductible with outside excess insurance coverage to $25 million on covered structures. OC San has insured several key structures against the peril of earthquake; all other structures are completely self-insured. The self-insurance portion of the boiler & machinery exposure is the deductible ranging from $25,000 to $350,000 under the outside excess boiler & machinery insurance coverage to $100 million per occurrence combined limit. The self-insurance portion of the general liability exposure is the $1,000,000 per occurrence deductible under the outside excess liability coverage to $40 million per occurrence and aggregate. The self-insurance portion of the pollution liability exposure is the $250,000 per loss deductible under the outside pollution liability insurance coverage to $10 million. There were no substantive changes to insurance coverage during the fiscal year ended June 30, 2025. During the past three fiscal years there have been no settlements in excess of covered amounts. Claims against OC San are processed by General Counsel or an outside claim administrator. These claims are charged to claims expense based on estimated or known amounts which will ultimately be paid. Claims incurred but not yet reported have been considered in determining the accrual for loss contingencies. Workers’ compensation reserves and general liability estimated loss accruals are actuarially determined. The estimate of the claims liability also includes any amounts for allocated and non-allocated claim adjustment expenses. OC San management believes that there are no unrecorded claims as of June 30, 2025, that would materially affect the financial position of OC San. Deferred Compensation Plan OC San offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The plan permits all employees of OC San to defer a portion of their salary until future years. The amount deferred is not available to employees until termination, retirement, death, or for unforeseeable emergency. The assets of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. The plan assets are administered by an outside party and are not subject to the claims of OC San’s general creditors. In accordance with GASB Statement No. 97, the plan’s assets and liabilities are not included within OC San’s financial statements. New Accounting Pronouncements OC San implemented the following GASB Statements for the year ended June 30, 2025: GASB Statement No. 101, Compensated Absences The provisions of this standard modernize the types of leave that are considered a compensated absence and provide guidance for a consistent recognition and measurement of the compensated absence liability. The effect of the implementation of this standard on beginning net position is disclosed in Note 11. GASB Statement No. 102, Certain Risk Disclosures The provisions of this standard require management to evaluate whether there are risks related to a government’s vulnerabilities due to certain concentrations or constraints that require disclosure. OC San has determined that there was no material impact on the financial statements. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 23 The following GASB Statements have been issued but are not yet effective for the year ended June 30, 2025. OC San is assessing what financial statement impact, if any, these Statements will have: GASB Statement No. 103, Financial Reporting Model Improvements, effective for the fiscal year ending June 30, 2026. GASB Statement No. 104, Disclosure of Certain Capital Assets, effective for the fiscal year ending June 30, 2026. (2) Cash and Investments Cash and investments as of June 30, 2025, are classified within the accompanying Statement of Net Position as follows: Cash and investments consist of the following as of June 30, 2025: Statement of Net Position: Current assets, unrestricted: Cash and cash equivalents 129,984,551$ Investments 770,902,021 Subtotal - current, unrestricted 900,886,572 Noncurrent assets, restricted: Cash and cash equivalents 701,418 Investments 16,882,220 Subtotal - restricted 17,583,638 Total cash and investments 918,470,210$ Cash on hand 1,500$ Deposits with financial institutions 4,729,875 Managed portfolio - cash and investments 896,155,197 Subtotal - unrestricted cash and investments 900,886,572 Monies held by trustees: Fiscal agent - cash and cash equivalents 290,279 Pension trust - cash and investments 17,293,359 Subtotal - restricted cash and investments 17,583,638 Total cash and investments 918,470,210$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 24 Investments Authorized by the California Government Code and OC San’s Investment Policy The following table identifies the investment types that are authorized by the California Government Code and OC San’s investment policy. This table and the subsequent tables identify certain provisions of either the California Government Code or OC San’s investment policy (whichever is more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Investment Investment Type - Authorized by Maximum Percentage in a Single the California Government Code Maturity (1 ) (3)of Portfolio (1 )Issuer (1 ) Local Agency Bonds 5 years 10% (2)5% (2) U.S. Treasury Obligations 5 years No limit No limit California State Treasury Obligations 5 years No limit No limit U.S. Agency Securities 5 years No limit 20% (2) Banker's Acceptances 180 days 40%5% (2) Commercial Paper 270 days 40%5% (2) Negotiable Certificates of Deposit 5 years 30%5% (2) Certificates of Deposit 5 years No limit 5% (2) Repurchase Agreements 1 year 20% (2)5% (2) Reverse Repurchase Agreements 90 days (2)5% (2)5% (2) Corporate Medium-Term Notes 5 years 30%5% (2) Mutual Funds N/A 20%10% Money Market Mutual Funds N/A 20%20% Mortgage Pass-Through Securities/ CMO/Asset-Backed Securities 5 years 20%5% (2) County Investment Pools N/A 15% (2)15% (2) Local Agency Investment Fund (LAIF) N/A No limit No limit Supranational Obligations 5 years 30%30% Public Bank Obligations 5 years No limit 5% (2) Notes (1 ) Restrictions are in accordance with the California Government Code unless indicated otherwise. (2) The restriction is in accordance with OC San's Investment Policy which is more restrictive than the California Government Code. (3) As allowed by California Government Code Section 53601, the Board of Directors has adopted a policy of a maximum maturity of 5 years for investments purchased by OC San's external money manager for the long-term investment portfolio. The duration of the long-term investment portfolio can never exceed 60 months. Investments purchased for the short-term portfolio are subject to the maturity restrictions noted in this table. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 25 Investments Authorized by Debt Agreements The investment of debt proceeds held by trustees is governed by provisions of the debt covenant agreements, rather than the general provisions of the California Government Code or OC San’s investment policy. The following table identifies the investment types that are authorized for investments held by OC San’s debt trustees. This table and the subsequent tables identify certain provisions of the debt covenant agreements that address interest rate risk, credit risk, and concentration of credit risk. Investments in Pension Trust OC San has established an Internal Revenue Service (IRS) Section 115 trust to fund OCERS pension benefits. The tax-exempt irrevocable trust assets are to be used exclusively for payment of OCERS pension liabilities. OC San has restricted cash and investments held in the trust administered by Public Agency Retirement Services (PARS), with US Bank as the trustee, and managed by PFM Asset Management under guidelines approved by OC San. OC San has two pension trust portfolios: Moderate and Balanced. Both portfolios are constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers, and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. The primary goal of the Moderate objective is to provide current income and moderate capital appreciation. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The strategic ranges are as follows: Equity (40% - 60%), Fixed Income (40% – 60 %), and Cash (0% – 20%). The primary goal of the Balanced objective is to provide growth of principal and income. While dividend and interest income are important components of the objective’s total return, it is expected that capital appreciation will comprise a larger portion of the total return. The strategic ranges are as follows: Equity (50% - 70%), Fixed Income (30% – 50 %), and Cash (0% – 20%). Maximum Maximum Investment Type - Authorized by Maximum Percentage Investment in a the Debt Covenant Agreement Maturity of Portfolio Single Issuer U.S. Treasury Obligations No Limit No limit No limit U.S. Agency Securities No Limit No limit No limit State and Local Agency Bonds No Limit No limit No limit Certificates of Deposit No Limit No limit No limit Banker's Acceptances 180 days No limit No limit Repurchase Agreements 1 year No limit No limit Investment Agreements No Limit No limit No limit Forward Purchase Agreements No Limit No limit No limit Reserve Fund Put Agreements No Limit No limit No limit Guaranteed Investment Contracts No Limit No limit No limit Commercial Paper 270 days No limit No limit Money Market Mutual Funds N/A No limit No limit Local Agency Investment Fund (LAIF) N/A No limit No limit ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 26 Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer an investment has before maturity, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that OC San manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary to provide the cash flow and liquidity needed for operations. OC San monitors the interest rate risk inherent in its managed portfolio by measuring the duration of its portfolio. The duration of monies held for shorter term purposes is recommended by OC San’s Treasurer and is based on OC San’s cash flow requirements in meeting current operating and capital needs. The average duration of monies invested for shorter term purposes may never exceed 180 days. The duration of monies held for longer term purposes is recommended annually by OC San’s Treasurer and is based on OC San’s five-year cash flow forecast. The average duration may not exceed 120 percent nor be less than 80 percent of the recommended duration. The average duration of monies invested for longer term purposes may never exceed 60 months. There is no stated maximum maturity for the money market mutual funds. The money market mutual funds for First American Government Obligations Fund is daily liquid funds available on demand. Following is a table which summarizes OC San’s managed portfolio investments by purpose and type with the duration as of June 30, 2025: Duration Duration Investment Type Fair Value (in years)(in months) Short-Term Portfolio: Local Agency Investment Fund 62,335,119$ 0.679 8.15 U.S. Agency Securities* 48,795,315 0.031 0.38 U.S. Treasury Bills 38,590,823 0.123 1.48 Corporate Medium-Term Notes 32,062,243 0.180 2.16 Commercial Paper 30,241,720 0.083 0.99 U.S. Treasury Notes 24,470,579 0.059 0.71 Supranationals 18,724,656 0.076 0.91 Money Market Mutual Funds 39,855 - - Short-term portfolio subtotal 255,260,310 0.234 2.81 Long-Term Portfolio: U.S. Treasury Notes 242,378,707 3.281 39.37 Corporate Medium-Term Notes 166,418,070 2.112 25.34 Asset Backed Securities/CMO/Mortgage Pass-Through* 152,887,464 2.058 24.70 U.S. Agency Securities*66,948,249 2.577 30.92 Supranationals 11,798,687 2.339 28.07 Money Market Mutual Funds 463,710 - - Long-term portfolio subtotal 640,894,887 2.592 31.10 Total managed investment portfolio 896,155,197$ * Includes highly sensitive securities. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 27 OC San monitors the interest rate risk inherent in its other investments using maturity of the investments. Following is a table of these investments, all held by trustees, as of June 30, 2025: Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations OC San’s investments (including investments held by trustees) include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above): Mortgage-backed securities: These securities are subject to early payment in a period of declining interest rates. The resulting reduction in expected total cash flows affects the fair value of these securities, making them highly sensitive to change in interest rates. At fiscal year end, the fair value of investments in mortgage-backed securities totaled $59,558,694 including $59,354,527 of mortgage pass-through securities, $172,367 of U.S. agency securities, and $31,800 of U.S. government backed mortgage pools. Fair Value of Investments OC San measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and Level 3: Unobservable inputs. 12 Months or ess Cash equivalents held by fiscal agents: Money Market Mutual Funds 290,279$ Cash equivalents held by fiscal agents subtotal 290,279 Cash equivalents and investments held by pension trust: Money Market Mutual Funds 411,140 Mutual Funds - Equity 9,224,943 Mutual Funds - Fixed Income 7,657,276 Cash equivalents and investments held by pension trust subtotal 17,293,359 Total held by trustees 17,583,638$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 28 At June 30, 2025, OC San had the following fair value measurements: US Bank is the custodial bank for all of OC San’s investments shown above in the managed portfolio, except for LAIF. Investments classified as Level 2 are valued using US Bank’s fair value hierarchy matrix based on the asset type classification. The fair value hierarchy level matrix is based on discussions with (1) pricing vendors, (2) broker/dealers, (3) investment managers, (4) industry groups, and (5) independent accounting firms. Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following table presents the minimum rating as required by the California Government Code, OC San’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type: Quoted Prices Significant in Active Other Markets for Observable Unobservable Identical Assets Inputs Inputs Investment Type Fair Value Level 1 Level 2 Level 3 Investments in Short-Term Portfolio: U.S. Agency Securities 48,795,315$ -$ 48,795,315$ -$ U.S. Treasury Bills 38,590,823 - 38,590,823 - Corporate Medium-term Notes 32,062,243 - 32,062,243 - Commercial Paper 30,241,720 - 30,241,720 - U.S. Treasury Notes 24,470,579 - 24,470,579 - Supranationals 18,724,656 - 18,724,656 - Investments in Long-Term Portfolio: U.S. Treasury Notes 242,378,707 - 242,378,707 - Corporate Medium-term Notes 166,418,070 - 166,418,070 - Asset Backed Securities/CMO/Mortgage Pass-Through 152,887,464 - 152,887,464 - U.S. Agency Securities 66,948,249 - 66,948,249 - Supranationals 11,798,687 - 11,798,687 - Investments Held By Pension Trust: Mutual Funds - Equity 9,224,943 9,224,943 - - Mutual Funds - Fixed Income 7,657,276 7,657,276 - - Fair Value Hierarchy Totals 16,882,219$ 833,316,513$ -$ Investments Not Subject To Fair Value Hierarchy: Local Agency Investment Fund (LAIF)62,335,119 Money Market Mutual Funds (Short-Term Portfolio)39,855 Money Market Mutual Funds (Long-Term Portfolio)463,710 Money Market Mutual Funds (Held by Fiscal Agent)290,279 Money Market Mutual Funds (Held by Pension Trust)411,140 Total Investment Portfolio 913,738,835$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 29 Investment Type and the Lowest Rating Reported at Year End Investments with no legal minimum rating & no required disclosure: U.S. Treasury Obligations 305,440,109 U.S. Agency Securities - GNMA 31,800 Subtotal 305,471,909 Investments with no legal minimum rating: U.S. Agency Securities (other than GNMA): Rating of AA+ (Standard & Poor's) 115,743,564 Local Agency Investment Fund (LAIF): Not rated 62,335,119 Invested with pension trust: Money Market Mutual Funds: Rating of AAAm (S&P)411,140 Mutual Funds - Equity: Not rated 9,224,943 Mutual Funds - Fixed Income: Not rated 7,657,276 Subtotal 195,372,042 Investments with a legal minimum rating (or its equivalent) of A: Corporate Medium-Term Notes: Rating of AAA (Standard & Poor's)2,090,886 Rating of Aa3 (Moody's)999,280 Rating of AA- (Standard & Poor's)26,637,382 Rating of A+ (Standard & Poor's)32,887,671 Rating of A2 (Moody's)16,168,128 Rating of A (Standard & Poor's)46,534,030 Rating of A- (Standard & Poor's)*67,469,619 Rating of BBB+ (Standard & Poor's)*5,693,077 Not rated 240 Subtotal 198,480,313 Investments with a legal minimum rating (or its equivalent) of AA: Asset Backed Securities/CMO/Mortgage Pass-Through: Rating of Aaa (Moody's)40,414,847 Rating of AAA (Standard & Poor's)52,913,923 Rating of AA+ (Standard & Poor's)59,526,894 Supranational Obligations: Rating of AAA (Standard & Poor's)30,523,343 Subtotal 183,379,007 Investments with a legal minimum rating (or its equivalent) of AAA: Money Market Mutual Funds: Rating of AAA (Standard & Poor's)290,279 Invested with fiscal agents: Money Market Mutual Funds: Rating of AAAm (S&P)503,565 Subtotal 793,844 Investments with a legal minimum rating (or its equivalent) of "Prime": Commercial Paper: Rating of AA+ (Standard & Poor's)7,572,488 Rating of AA (Standard & Poor's)9,483,225 Rating of A (Standard & Poor's)4,085,158 Rating of A (Fitch)4,280,850 Rating of P-1 (Moody's)4,819,999 Subtotal 30,241,720 Total 913,738,835$ *Investment was in compliance with legal requirements at the time it was purchased. Fair Value ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 30 Concentration of Credit Risk Limitations on the amount that OC San is allowed to invest in any one issuer have been identified previously in the section “Investments Authorized by the California Government Code and OC San’s Investment Policy” and in the section “Investments Authorized by Debt Agreements”. OC San follows whichever guideline is the most restrictive. As of June 30, 2025, OC San had the following investment representing five percent or more of total investments. Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and OC San’s investment policy contain legal requirements that limit the exposure to custodial credit risk for deposits as follows: a financial institution must secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and OC San’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. As of June 30, 2025, in accordance with OC San’s investment policy, none of OC San’s investments were held with a counterparty. All of OC San’s investments were held with an independent third-party custodian bank registered in the name of OC San. OC San uses US Bank as a third-party custody and safekeeping service for its investment securities. Investment in State Investment Pool OC San is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of OC San’s investment in this pool is reported in the accompanying financial statements at amounts based upon OC San’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are mortgage-backed securities, other asset-backed securities, loans to certain state funds, securities with interest rates that vary according to changes in rates greater than a one-for-one basis, and structured notes. The amounts invested in LAIF are recorded as cash and cash equivalents at June 30, 2025. Name of Issuer Fair Value % of Total Freddie Mac 58,263,549$ 6.38% ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 31 (3) Capital Assets Capital asset activity for the year ended June 30, 2025, is as follows: Beginning Ending Balance at Additions / Deletions / Balance at July 1, 2024 Transfers Transfers June 30, 2025 Capital assets not depreciated: Cost: Land 58,153,170$ 27,500,000$ -$ 85,653,170$ Construction in progress 677,082,169 232,115,846 (79,535,431) 829,662,584 Total nondepreciable assets 735,235,339 259,615,846 (79,535,431) 915,315,754 Depreciable capital assets: Cost: Sewage collection facilities 1,013,172,599 31,221,742 - 1,044,394,341 Sewage treatment facilities 2,850,633,361 20,605,802 (716,770) 2,870,522,393 Effluent disposal facilities 96,161,634 - - 96,161,634 Solids disposal facilities 3,329,893 - - 3,329,893 General and administrative facilities 401,983,964 7,003,913 (2,467,966) 406,519,911 Lease right-to-use asset 109,897 - - 109,897 Subscription right-to-use assets 3,474,003 2,616,953 (1,501,845) 4,589,111 Excess purchase price over book value on acquired assets 19,979,000 - - 19,979,000 Subtotal 4,388,844,351 61,448,410 (4,686,581) 4,445,606,180 Accumulated depreciation and amortization: Sewage collection facilities (482,083,056) (23,308,857) - (505,391,913) Sewage treatment facilities (1,350,246,327) (85,377,666) 716,770 (1,434,907,223) Effluent disposal facilities (71,550,543) (1,372,434) - (72,922,977) Solids disposal facilities (3,100,658) (9,719) - (3,110,377) General and administrative facilities (202,101,208) (17,821,578) 1,597,511 (218,325,275) Lease right-to-use asset (6,106) (36,632) -(42,738) Subscription right-to-use assets (1,617,243) (1,281,085) 1,501,846 (1,396,482) Excess purchase price over book value on acquired assets (19,979,000) - - (19,979,000) Subtotal (2,130,684,141) (129,207,971) 3,816,127 (2,256,075,985) Net depreciable assets 2,258,160,210 (67,759,561) (870,454) 2,189,530,195 Net capital assets 2,993,395,549$ 191,856,285$ (80,405,885)$ 3,104,845,949$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 32 (4) Lease Receivable As of June 30, 2025, OC San was engaged as a lessor in three noncancellable leases for building office space. The lessees are required to make fixed monthly payments ranging from $3,721 to $17,888 per month. OC San recognized $372,360 in lease revenue and $33,903 in interest revenue during the current fiscal year related to these agreements. As of June 30, 2025, the lease receivable is $485,719 and deferred inflows of resources is $435,610. The future principal and interest lease payments to be received as of June 30, 2025, are as follows: (5)Long-Term Liabilities The following is a summary of the changes in long-term liabilities for the year ended June 30, 2025: Compensated Absences OC San’s policies related to compensated absences are described in Note 1. The beginning balance reflects an increase of $4,368,613 from a restatement detailed in Note 11. OC San’s liability at June 30, 2025, is $15,448,598 with an estimated $11,738,839 to be paid or used within the next fiscal year. Year Ending June 30,Principal Interest Total 2026 396,114$ 14,917$ 411,031$ 2027 89,605 1,124 90,729 2028 - -- Total 485,719$ 16,041$ 501,760$ Beginning Balance, July 1, Ending Balance, Due within Long-term restated Additions Deletions June 30 one year amount Compensated absences 14,761,365$ 9,787,817$ (9,100,584)$ 15,448,598$ 11,738,839$ 3,709,759$ Claims and judgments 5,152,105 533,040 (799,894) 4,885,251 1,147,310 3,737,941 Lease liability 104,402 - (34,144) 70,258 37,075 33,183 Subscription liability 809,539 2,616,953 (1,122,154) 2,304,338 1,108,031 1,196,307 Certificates of participation / revenue obligations 606,115,000 - (34,085,000) 572,030,000 33,330,000 538,700,000 Unamortized premium 74,292,687 - (12,050,630) 62,242,057 11,047,183 51,194,874 Totals 701,235,098$ 12,937,810$ (57,192,406)$ 656,980,502$ 58,408,438$ 598,572,064$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 33 Claims and Judgments Payable OC San is self-insured in a number of areas as described in Note 1. The following is a summary of the change in claims and judgments payable for the years ended June 30, 2025, and 2024: Lease Liability As of June 30, 2025, OC San was engaged in one three-year lease agreement as lessee for property access used to operate a chemical dosing site as part of OC San’s sewer collection facilities. Required monthly payments range from $3,200 to $3,395 per month. OC San’s lease liability at June 30, 2025, is $70,258. The future principal and interest lease payments as of June 30, 2025, are as follows: Subscription Liability As of June 30, 2025, OC San was engaged in five subscription-based information technology arrangements for the right to use various vendor-provided software including geographic information systems, Microsoft Enterprise licenses, server virtualization licenses, workflow automation, and financial budget software applications. The future principal and interest subscription payments as of June 30, 2025, are as follows: 2024-25 2023-24 Claims and judgments payable at July 1 5,152,105$ 5,555,003$ Claims incurred during the fiscal year 533,040 2,530,384 Payments on claims during the fiscal year (799,894) (2,933,282) Claims and judgments payable at June 30 4,885,251 5,152,105 Less: current portion (1,147,310) (1,121,620) Total long-term claims and judgments payable 3,737,941$ 4,030,485$ Year Ending June 30,Principal Interest Total 2026 37,075$ 2,675$ 39,750$ 2027 33,183 765 33,948 2028 - -- Total 70,258$ 3,440$ 73,698$ Year Ending June 30,Principal Interest Total 2026 1,108,031$ 85,653$ 1,193,684$ 2027 1,041,795 34,755 1,076,550 2028 154,512 644 155,156 Total 2,304,338$ 121,052$ 2,425,390$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 34 Certificates of Participation / Revenue Obligations OC San issued certificates of participation and revenue obligations in order to finance construction of the treatment facilities. Each issuance represents a direct and proportionate interest in the semi- annual interest payments. Installment payments for the issues are payable from any source of lawfully available funds of OC San. Certificates of participation and revenue obligations at June 30, 2025, are summarized as follows: Outstanding Certificates of Participation and Revenue Obligations All of the outstanding debt of OC San is senior lien debt with rate covenants that require a minimum coverage ratio of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements. As of June 30, 2025, the coverage ratio for senior lien debt was 5.33. May 2010 Wastewater Revenue Obligations, Series 2010A On May 18, 2010, OC San completed the sale of $80,000,000 of wastewater revenue obligations under the federally taxable Build America Bonds program. The obligations were issued to finance and reimburse OC San for the acquisition, construction, and installation of additional improvements made to the wastewater system. The stated interest rate on the obligations is fixed and will range from 5.56 percent to 5.58 percent. However, in accordance with their designation as Build America Bonds, OC San expected to receive a cash subsidy from the United States Treasury equal to 35 percent of the interest payable with respect to these revenue obligations, resulting in lower net costs. On March 1, 2013, the federal government implemented certain automatic spending cuts known as the sequester. As a result of the sequester, federal subsidy payments on Build America Bonds have been reduced annually from a high of 8.7 percent for the federal fiscal year end September 30, 2013, to a low of 5.7 percent for the federal fiscal year end September 30, 2021, through 2030. Annual principal payments are due on February 1, beginning February 1, 2034, through February 1, 2040. The trust agreement for the revenue obligations does not require the establishment of a reserve. December 2010 Wastewater Revenue Obligations, Series 2010C On December 8, 2010, OC San completed the sale of $157,000,000 of wastewater revenue obligations under the federally taxable Build America Bonds program. The obligations were issued to finance and reimburse OC San for the acquisition, construction, and installation of additional improvements made to the wastewater system. The stated interest rate on the obligations is fixed and will range from 6.35 percent to 6.40 percent, however, in accordance Amount 2010A wastewater revenue obligations 80,000,000$ 2010C wastewater revenue obligations 22,830,000 2016A wastewater refunding revenue obligations 115,850,000 2017A wastewater refunding revenue obligations 65,815,000 2021A wastewater refunding revenue obligations 76,705,000 2022A wastewater refunding revenue obligations 81,620,000 2024A wastewater refunding revenue obligations 129,210,000 Total certificates of participation / revenue obligations 572,030,000$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 35 with their designation as Build America Bonds, OC San expected to receive a cash subsidy from the United States Treasury equal to 35 percent of the interest payable with respect to these revenue obligations, resulting in lower net costs. Similar to the 2010 Series A certificates of participation, the sequester also reduced the federal subsidy on these Build America Bonds from a high of 8.7 percent for the federal fiscal year end September 30, 2013, to a low of 5.7 percent for the federal fiscal year end September 30, 2021, through 2030. Annual principal payments are due on February 1, beginning February 1, 2031, through February 1, 2032. The trust agreement for the revenue obligations does not require the establishment of a reserve. March 2016 Wastewater Refunding Revenue Obligations, Series 2016A On March 30, 2016, OC San completed the sale of $145,880,000 of wastewater refunding revenue obligations. The obligations were issued to partially refund $162,780,000 of the outstanding principal balance of the 2009 Series A certificates of participation. The stated interest rate on the obligations is fixed and will range from 4 to 5 percent. Annual principal payments are due on February 1, beginning February 1, 2020, through February 1, 2039. The trust agreement for the revenue obligations does not require the establishment of a reserve. February 2017 Wastewater Refunding Revenue Obligations, Series 2017A On February 1, 2017, OC San completed the sale of $66,370,000 of wastewater refunding revenue obligations. The obligations were issued to refund the $91,620,000 outstanding principal balance of the 2007 Series A certificates of participation. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2021, through February 1, 2030. The trust agreement for the revenue obligations does not require the establishment of a reserve. 2021 Wastewater Refunding Revenue Obligations, Series 2021A On July 29, 2021, OC San completed the sale of $133,510,000 of wastewater refunding revenue obligations. The obligations were issued to refund the $61,575,000 outstanding principal balance of the 2011 Series A certificates of participation and to refund the $102,200,000 outstanding principal balance of the 2018 Series A revenue refunding certificate anticipation notes. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2022, through February 1, 2036. The trust agreement for the revenue obligations does not require the establishment of a reserve. 2022 Wastewater Refunding Revenue Obligations, Series 2022A On February 1, 2022, OC San completed the sale of $81,620,000 of wastewater refunding revenue obligations. The obligations were issued to refund the $100,645,000 outstanding principal balance of the 2012 Series A certificates of participation and to refund the $6,670,000 outstanding principal balance of the 2012 Series B certificates of participation. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2031, through February 1, 2033. The trust agreement for the revenue obligations does not require the establishment of a reserve. 2024 Wastewater Refunding Revenue Obligations, Series 2024A On May 7, 2024, OC San completed the sale of $139,720,000 of wastewater refunding revenue obligations. The obligations were issued to refund the $30,095,000 outstanding principal ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 36 balance of the 2014 Series A wastewater refunding revenue obligations and to refund the $127,510,000 outstanding principal balance of the 2015 Series A wastewater refunding revenue obligations. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning February 1, 2025, through February 1, 2037. The trust agreement for the revenue obligations does not require the establishment of a reserve. Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation and revenue obligations as of June 30, 2025, are as follows: (6) Pension Benefits OC San has two defined benefit pension plans for retirees: the plan maintained through and by the Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account (ARBA) administered directly by OC San. A summary of pension amounts for OC San’s plans at June 30, 2025, is presented below: A.Orange County Employees Retirement System (OCERS) Plan Description: All qualified permanent and probationary employees are eligible to participate in OC San’s Employee Pension Plan (Plan), which is a cost-sharing multiple employer defined benefit pension plan administered by the Orange County Employees Retirement System (OCERS). OCERS was established in 1945 under the provisions of the County Employees Retirement Law of 1937 (CERL). The Plan operates under the provisions of the CERL, the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by OCERS’ Board of Retirement. The Plan’s authority to establish and amend the benefit terms are set Year Ending June 30,Principal Interest Total 2026 33,330,000$ 27,087,784$ 60,417,784$ 2027 34,870,000 25,421,283 60,291,283 2028 40,770,000 23,677,783 64,447,783 2029 42,805,000 21,639,283 64,444,283 2030 44,945,000 19,499,033 64,444,033 2031 - 2035 232,300,000 62,670,350 294,970,350 2036 - 2040 143,010,000 14,276,254 157,286,254 Total 572,030,000$ 194,271,770$ 766,301,770$ OCERS ARBA Total Net pension asset - OCERS 36,606,252$ -$ 36,606,252$ Deferred outflows - pensions 57,974,355 2,373,213 60,347,568 Total pension liability - ARBA - 18,366,497 18,366,497 Deferred inflows - pensions 9,843,156 5,153,721 14,996,877 Pension expense 14,995,862 764,553 15,760,415 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 37 by the CERL and PEPRA and may be amended by the California State Legislature. The Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code. Benefits Provided: OCERS provides service retirement, disability, death, and survivor benefits to plan members who may be public employees or beneficiaries. The CERL and PEPRA establish benefit terms. Benefits are based on years of credited service equal to one year of full-time employment. Members of plans B and H with ten years of service credit are entitled to receive a retirement allowance beginning at age 50; members of plan U with 5 years of service are eligible to receive a retirement allowance at age 52. Members attaining age 70 are eligible to retire regardless of credited service. Benefits are determined by plan formula, age, years of service and final average salary (FAS) as follows: A cost-of-living adjustment is provided to benefit recipients based on changes in the Consumer Price Index (CPI) up to a maximum of 3% per year. Any increase greater than 3% is banked and may be used in years when the CPI is less than 3%. The increase is established and approved annually by the Board of Retirement. The Plan also provides disability and death benefits to eligible members and their beneficiaries, respectively. For retirees, the death benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to benefits based on the member’s years of service and whether or not the cause of death is service related. Plan H Plan B Plan U Hire Date After 9/21/79 Prof/Sup*: Before 10/1/10 OCEA*: Before 8/1/11 501*: Before 7/1/11 Prof/Sup: After 10/1/10 OCEA: After 8/1/11 501: After 7/1/11 All: Before 1/1/2013 On or after 1/1/2013 Final Average Compensation (FAS)Highest 36 months Highest 36 months Highest 36 months Normal Retirement Age Age 55 Age 57.5 Age 67 Age 70, any years Age 70, any years Age 70, any years Age 50, 10 years Age 50, 10 years Age 52, 5 years Benefit percent per year of service for normal retirement age 2.5% per year of FAS for every year of service credit 1.667% per year of FAS for every year of service credit 2.5% per year of FAS for every year of service credit Benefit Adjustments Reduced before age 55 Reduced before age 57.5 Reduced before age 67 FAS Limitation Internal Revenue Code Section 401(a)(17) Internal Revenue Code Section 401(a)(17) Public Employees Pension Reform Act (PEPRA): 120% of Social Security wage base per year * Prof/Sup: Professional and Supervisor employee groups, bargaining unit SPMG. * OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA. * 501: Operations and Maintenance employee groups, bargaining unit International Union of Operating Engineers Local 501. Service Requirement Eligibility ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 38 At the December 31, 2024, measurement date, the following employees were covered by the benefit terms: Contributions: Participating employers and active members are required by statute to contribute a percentage of covered salary to the Plan. CERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and be effective on the July 1 following notice of a change in rate. Funding contributions are determined annually on an actuarial basis as of December 31 by OCERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the Plan from OC San were $9,725,737 for the year ended June 30, 2025. Contribution rates in effect for the fiscal year ended June 30, 2025, are as follows: For the year ended June 30, 2025, the contributions and average employer’s contribution rate as a percentage of covered payroll were as follows: Pension Assets/Liabilities: As of June 30, 2025, OC San reported a net pension asset of $36,606,252 for its proportionate share of OCERS’ net pension liability. The net pension asset was measured as of December 31, 2024, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of that date. OC San’s proportion of the net pension asset was based on a projection of OC San’s long-term share of contributions to the pension plan relative to the projected contribution of all participating employers, actuarially determined. Inactive employees or beneficiaries currently receiving benefits 650 Inactive employees entitled to but not yet receiving benefits 171 Active employees 625 Total 1,446 Plan H Plan B Plan U Employer Contribution Rate, 7/1/24 - 6/30/25 13.36% 12.81% 9.97% Employee Contribution Rate, 7/1/24 - 6/30/25 (2)6.57-13.35% (1)7.56-13.81% 7.01-14.89% Paid by Employer for Employee 3.50% 0.00% 0.00% (1)Net of employer paid portion of 3.5%. (2)Employee rates are determined by the age of entry into the retirement system. Plans Employer Contributions Employee (Paid by Employer) Contributions Average Employer Contribution Rate (%) Plan H 3,619,131 946,730 5.28% Plan B 948,062 - 1.10% Plan U 5,158,544 - 5.96% Total 9,725,737$ 946,730$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 39 At December 31, 2024, OC San’s proportion of the net pension liability was negative (0.921%), which was a decrease of 0.539% from its proportion measured as of December 31, 2023. The change in OC San’s proportion of the net pension liability during the fiscal year ended June 30, 2025, was caused by contributions and projections noted above. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions: For the year ended June 30, 2025, OC San recognized pension expense of $14,995,862 for its proportionate share of the pension expense. At June 30, 2025, OC San reported its share of deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $13,940,239 reported as deferred outflows of resources related to pensions resulting from OC San’s contributions to OCERS subsequent to the measurement date includes a $9,829,132 prepayment in January 2025 and will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OCERS pensions will be recognized in pension expense as follows: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 36,769,832$ 5,860,974$ Net difference between projected and actual investment earnings on pension plan investments - 3,982,182 Changes of assumptions (1)7,264,284 - Employer contributions paid to OCERS subsequent to the measurement date 13,940,239 - Total 57,974,355$ 9,843,156$ • adjustments to the mortality tables, • retirement assumptions for deferred vested members (age at retirement 58, salary increase of 3.90% with reciprocity, and an increase in compensation increases), • % in the rate of marriage for male and female members at retirement or pre-retirement death, • an increase in the Consumer Price Index of 2.75% per year, maximum increase is 3%, • and a slight increase of .50% in salaries per year. Detail for these changes is available in the Segal Actuarial Valuation for December 31, 2024, Section 3. This report is available on the OCERS website at www.ocers.org. (1) The monetary effects of changes in actuarial assumptions and method totals $7,264,284 for deferred outflows and $0 for deferred inflows of resources. These changes include: Year Ending June 30, Amount 2026 12,166,692$ 2027 27,642,559 2028 (4,963,548) 2029 (1,638,405) 2030 983,662 Total 34,190,960$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 40 Actuarial Assumptions and Methods: The total pension liability in the December 31, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: OCERS Economic and Demographic Assumptions: On August 17, 2020, the OCERS Board adopted the following significant changes to the economic and demographic actuarial assumptions, used to establish retirement contribution rates effective July 1, 2021: Reduced the assumed rate of price inflation from 2.75% to 2.50%. Adopted the use of Public Retirement Plans Mortality tables (PUB-2010) published by the Society of Actuaries. Additionally, the OCERS Board adopted a three-year phase-in of the impact to the contribution rates associated with the Unfunded Actuarially Accrued Liability. The cumulative effect of these changes will have the impact of increasing contribution rates for members and plan sponsors. The mortality assumptions used in the total pension liability at December 31, 2024, were based on the Amount-Weighted Above-Median Mortality Tables (adjusted for OCERS experience), projected generationally with the two-dimensional mortality improvement scale MP-2021, and adjusted separately for healthy and disabled members. The basis for determining the mortality assumptions used were based on the results of the actuarial experience study for the period January 1, 2020, through December 31, 2022. Further details of the experience study can be found in the OCERS Annual Comprehensive Financial Report, available on their website at www.ocers.org. Long-Term Expected Real Rate of Return: The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of inflation) are developed for each major asset class. These returns are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation and deducting expected investment expenses. Investment rate of return 7.00% of net pension plan investment expenses, including inflation Discount rate 7.00% Inflation rate 2.50% Projected salary increases 3.90% to 10.25% Cost of living adjustment 2.75% of retirement income ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 41 The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation, but before investment expenses, used in the derivation of the long-term expected investment rate of return assumption are summarized in the following table for the calendar year ended December 31, 2024: Discount Rate: The discount rate used to measure the total pension liability was 7.00% for the year ended December 31, 2024. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability as of December 31, 2024. Sensitivity of the Proportionate Share of Net Pension Liability to Changes in the Discount Rate: The following table represents OC San’s proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what OC San’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the current rate: Asset Class Target Allocation Long-Term Expected Real Rate of Return (Arithmetic) Global Equity 45.00% 7.05% Investment Grade Bonds 9.00% 1.97% High Yield Bond 0.50% 4.63% TIPS 2.00% 1.77% Emerging Market Debt 0.50% 4.72% Long-Term Government Bonds 3.30% 2.82% Real Estate 3.00% 3.86% Private Equity 15.00% 9.84% Private Credit 3.50% 6.47% Value Added Real Estate 3.00% 7.38% Opportunistic Real Estate 1.00% 9.74% Energy 2.00% 10.89% Infrastructure (Core Private) 1.00% 5.98% Infrastructure (Non-Core Private) 3.00% 8.88% Global Macro 1.70% 3.17% CTA (Trend Following) 3.30% 3.15% Alternative Risk Premia 1.70% 3.24% Special Situations Lending 1.50% 8.96% Total 100.00% Net Pension Asset (Liability) December 31, 2024 $ (97,711,095) $ 36,606,252 $ 146,448,800 (6.00%) (7.00%) (8.00%) 1% Decrease Current Discount Rate 1% Increase ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 42 Pension Plan Fiduciary Net Position: Detailed information about OCERS’ fiduciary net position is available in a separately issued OCERS Annual Comprehensive Financial Report. That report may be obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92708 or at their web site (www.ocers.org). B.Additional Retiree Benefit Account (ARBA) Plan Description: The OC San ARBA plan is a single-employer defined benefit plan which was administered by OCERS until February 29, 2008, when OC San began direct administration. This benefit was established by the OC San Board of Directors on October 25, 1992. It provides a monthly payment to retirees towards the premium costs of health insurance for the retiree and eligible dependents. The retiree is not required to use this amount for health insurance premium or to remain on the OC San medical plan. The plan is a funded on a pay-as-you-go plan from general funds and is administered by OC San. Stand-alone financial statements are not issued for the plan. Benefits Provided: Employees who retire receive $10 per month for every year of service up to a maximum of 25 years, or $250 per month. This amount is independent of salary and is fixed at retirement. Because OC San cannot ensure the use of the benefit for payment of eligible health insurance expenses, the benefit is taxable to the retiree. Survivor benefits are provided in the event that a retiree pre-deceases his/her spouse. For retirees hired prior to July 1, 1988, OC San provides health insurance coverage for 2½ months per year of service (see Note 7 – Other Post-Employment Benefits). ARBA benefits begin immediately after this benefit ends. For those hired on or after July 1, 1988, ARBA benefits begin immediately upon retirement and continue for life. Employees hired into the OCEA bargaining group after August 1, 2011, are ineligible for this benefit. Benefits are determined by hire date, bargaining unit and years of service as follows: No cost-of-living adjustment is provided to benefit recipients. Hire date All: Prior to 7/1/88 All: After 7/1/88 OCEA*: Before 8/1/11 Benefit amount per year of service for normal retirement age $10 per month x years of service up to a maximum of 25 years $10 per month x years of service up to a maximum of 25 years Service requirement eligibility Age 50 or over with 10 or more years Any age with 30 or more years Age 70 or over, any years Age 50 or over with 10 or more years Any age with 30 or more years Age 70 or over, any years Benefit payments Monthly for life Monthly for life Benefit schedule Immediately after retiree health insurance coverage ends Immediately upon retirement * OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 43 At the July 1, 2023, actuarial valuation date, the following employees were covered by the benefit terms: Contributions: There are no employee contributions for this plan; OC San covers 100% of the cost. OC San utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OC San were $1,268,650 for the year ended June 30, 2025. Pension Liabilities: As of June 30, 2025, OC San reported a total pension liability of $18,366,497 for its ARBA plan with an estimated $1,233,691 to be paid within the next fiscal year. The total pension liability was determined by an actuarial valuation as of July 1, 2023. OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its pension obligation. As a result, there are no plan assets and the total pension liability is equal to the net pension liability. Standard actuarial update procedures were used to project/discount from July 1, 2023, to the measurement date of June 30, 2025. The actuarial valuation performed as of July 1, 2023, used the entry age, level percent of pay cost method. This method represents the present value of all benefits accrued through the valuation date assuming that each employee’s liability is expensed from hire date until retirement date as a level percentage of pay. The following table shows the changes in the total pension liability: Inactive employees or beneficiaries currently receiving benefits 494 Active employees 518 Total 1,012 Total Pension Liability Increase (Decrease) Beginning balance at July 1, 2024 21,013,679$ Changes in the year: Service cost 439,161 Interest on total pension liability 826,740 Difference between expected and actual experience - Changes of assumptions (2,644,433) Benefit payments (1,268,650) Net changes (2,647,182) Ending balance at June 30, 2025 18,366,497$ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 44 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension: For the year ended June 30, 2025, OC San recognized pension expense of $764,553 for its ARBA plan. At June 30, 2025, OC San reported its share of deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Amounts reported as deferred outflows of resources and deferred inflows of resources related to ARBA pensions will be recognized in pension expense as follows: Actuarial Assumptions and Methods: The total pension liability in the July 1, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: The mortality assumptions used in the total pension liability at July 1, 2023, were based on the Pub-2010 General Employee and Healthy Retiree Amount-Weighted Above-Median Mortality Tables for males or females, projected generationally with the two-dimensional mortality improvement scale MP-2021. Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 1,720,049$ 323,397$ Changes of assumptions (1) 653,164 4,830,324 Total 2,373,213$ 5,153,721$ (1) The monetary effects of changes in actuarial assumptions and method totals $653,164 for deferred outflows and ($4,830,324) for deferred inflows of resources. These changes include passage of time, a change in the discount rate from 3.97% to 5.20%, change in actuarial system, census and other losses. Year Ending June 30, Amount 2026 (640,019)$ 2027 (675,302) 2028 (626,732) 2029 (276,972) 2030 (262,961) Thereafter (298,522) Total (2,780,508)$ Investment rate of return 3.75% per annum Discount rate 3.86% per annum as of July 1, 2023 (valuation date) 5.20% per annum as of June 30, 2025 (measurement date) Inflation rate 2.50% per annum Projected salary increases 3.00% per annum (for service cost only; benefits not pay-related) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 45 Discount Rate: The discount rate used to measure the total pension liability was 3.86% as of the valuation date, July 1, 2023, and 5.20% as of the measurement date, June 30, 2025. Because there are no assets held in a trust, the discount rate is based on the 20-year, tax exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Sensitivity of the Total Pension Liability to Changes in the Discount Rate: The following table represents the total pension liability calculated using the discount rate of 5.20% as of the measurement date, as well as what total pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (4.20%) or 1 percentage point higher (6.20%) than the current rate: (7)Other Post-Employment Benefits (OPEB) Plan Description: The post-employment medical benefits plan is a single-employer defined benefit plan administered by OC San. This plan was established and may be modified only by action of the OC San Board of Directors. Stand-alone financial statements are not issued. Benefits Provided: OC San offers medical insurance to active and retired employees, as well as their qualified dependents. All retirees may choose coverage in an OC San medical plan, with retirees paying the full premium. However, for employees hired prior to July 1, 1988, medical benefits begin immediately at retirement with OC San paying 2.5 months of premium for each year of continuous service toward the cost of coverage under OC San medical plans. At the termination of this period the retiree may elect to continue coverage at his/her own expense. For the fiscal year ended June 30, 2025, premiums ranged between $222 and $4,468 per month, depending on the plan and number of dependents covered. At the July 1, 2023, actuarial valuation date, the following employees were covered by the benefit terms: Contributions: There are no employee contributions to this plan; OC San covers 100% of the cost for qualifying employees as stated above. Retirees opting to remain with the plan after employment pay 100% of the premium cost, except for those for whom OC San pays for a period (see above). OC San utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OC San were $148,592 and the estimated implicit subsidy was $711,495, resulting in total payments of $860,087 for the year ended June 30, 2025. Total Pension Liability June 30, 2025 $ 20,471,351 $ 18,366,497 $ 16,595,581 (4.20%) (5.20%) (6.20%) 1% Decrease Current Discount Rate 1% Increase Inactive employees or beneficiaries currently receiving benefits (includes 16 with premiums paid by OC San and 89 under age 65 paying premiums) 105 Active employees 579 Total 684 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 46 OPEB Liabilities: As of June 30, 2025, OC San reported total OPEB liability of $4,409,328 for its post-employment retiree medical benefits plan with an estimated $774,627 to be paid within the next fiscal year. The total OPEB liability was determined by an actuarial valuation as of July 1, 2023. OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability is equal to the net OPEB liability. Standard actuarial update procedures were used to project/discount from July 1, 2023, to the measurement date of June 30, 2025. The actuarial valuation performed as of July 1, 2023, used the entry age, level percent of pay cost method. This method represents the present value of benefits accrued through the valuation date, assuming that each employee’s liability is expensed from hire date until retirement date as a level percentage of pay. The following table shows the changes in the total OPEB liability: OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB: For the year ended June 30, 2025, OC San recognized OPEB expense of $852,186 for its post-employment retiree medical benefits plan. At June 30, 2025, OC San reported its share of deferred outflows and deferred inflows of resources related to OPEB from the following sources: Total OPEB Liability Increase (Decrease) 5,182,488$ Changes in the year: Service cost 155,173 Interest on total OPEB liability 194,999 Difference between expected and actual experience - Changes of assumptions (263,245) Benefit payments (1)(860,087) Net changes (773,160) 4,409,328$ (1)As part of the July 1, 2023 actuarial valuation report, Foster & Foster prepared a projection of the expected annual cost to the District to pay OPEB benefits. Ending balance at June 30, 2025 Beginning balance at July 1, 2024 Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 2,680,387$ -$ Changes of assumptions (1)989,919 233,331 Total 3,670,306$ 233,331$ (1)The monetary effects of changes in actuarial assumptions and method totals $989,919 for deferred outflows. and (233,331) for deferred inflows. These changes include passage of time, a change in the discount rate from 3.97% to 5.20%, change in actuarial system, census and other losses. ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 47 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in pension expense as follows: Actuarial Assumptions and Methods: The total OPEB liability in the July 1, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: The mortality assumptions used in the total OPEB liability at July 1, 2023, were based on the Pub- 2010 General Employee and Healthy Retiree Amount-Weighted Above-Median Mortality Tables for males or females, projected generationally with the two-dimensional mortality improvement scale MP-2021. Actuarial assumptions used in the July 1, 2023, valuation were based on a review of plan experience during the period July 1, 2021, through June 30, 2023. Discount Rate: The discount rate used to measure the total OPEB liability was 3.86% as of the valuation date, July 1, 2023, and 5.20% as of the measurement date, June 30, 2025. Because there are no assets held in a trust, for GASB 75 reporting purposes, the discount rate is based on a yield or index rate for 20-year, tax exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Year Ending June 30, Amount 2026 502,014$ 2027 502,014 2028 502,014 2029 502,014 2030 502,014 Thereafter 926,905 Total 3,436,975$ Investment rate of return 3.75% per annum Discount rate 3.86% per annum as of July 1, 2023 (valuation date) 5.20% per annum as of June 30, 2005 (measurement date) Inflation rate 2.50% per annum Healthcare cost trend rate 5.25% for 2025-2029, 5.00% for 2030-2039, 4.75% for 2040- 2049, 4.50% for 2050-2069, and 4.00% for 2070 and later; Medicare ages: 4.50% for 2025-2029 and 4.00% for 2030 and later years Projected salary increases 3.00% per annum ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 48 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate: The following table represents the total OPEB liability calculated using the discount rate of 5.20% as of the measurement date, as well as what total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (4.20%) or 1 percentage point higher (6.20%) than the current rate: Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following table represents the total OPEB liability, as well as what total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rate: (8)Transactions with Irvine Ranch Water District – Revenue Area No. 14 Formation of Revenue Area No. 14 & Excess Purchase Price Over Book Value of Acquired Assets On July 1, 1985, Revenue Area No. 14 was formed as an independent special district as a result of a negotiated agreement between OC San and IRWD. At the time of Revenue Area 14’s creation, OC San consisted of eight independent special districts (see Note 1 – Reporting Entity). The eight existing districts sold a portion of the joint treatment facilities and land to the newly created district and recorded capacity rights revenue at the time of the sale. In accordance with the negotiated agreement between OC San and IRWD, IRWD paid OC San $34,532,000 for an initial 15 million gallons per day capacity in OC San’s joint treatment facilities (with an ultimate collection capacity of 32 million gallons per day) and for a pro-rata interest in real property (based on flow of 32 million gallons per day). The book value of the assets acquired was determined to be $14,553,000 as of June 30, 1986; these assets were recorded at book value in Revenue Area 14. The excess of the purchase price over the assets' book value was $19,979,000 and was recorded as an intangible asset in Revenue Area 14. The excess of the purchase price over the assets’ book value was amortized over useful lives of the original assets acquired. The excess of purchase price over the assets' book value was fully amortized as of June 30, 2017. Annual Transactions IRWD entered into a separate agreement with Revenue Area 14 on January 1, 1986, whereby IRWD agreed to fund quarterly payments of Revenue Area 14's proportionate share of OC San's joint capital outlay revolving fund budget requirements and certain capital improvements during the term of the agreement, for which contributions of $7,303,317 were recorded as contributions from other governments during the fiscal year ended June 30, 2025. IRWD also agreed to fund the annual integration adjustment of Revenue Area 14’s equity share in OC San’s Joint Works Treatment Facilities based on the flows discharged to OC San. Integration contributions charged to IRWD of $12,204,264 from Revenue Area 14 were recognized and reported as contributions from other governments during the fiscal year ended June 30, 2025. These contributions received from or Total OPEB Liability June 30, 2025 $ 4,621,894 $ 4,409,328 $ 4,209,691 (4.20%) (5.20%) (6.20%) 1% Decrease Current Discount Rate 1% Increase Total OPEB Liability June 30, 2025 $ 4,067,814 $ 4,409,328 $ 4,798,130 (1) 4.25% for 2025-2029; Medicare ages: 3.50% for 2025-2029 (2) 5.25% for 2025-2029; Medicare ages: 4.50% for 2025-2029 (3) 6.25% for 2025-2029; Medicare ages: 5.50% for 2025-2029 1% Decrease (1) Current Trend Rate (2) 1% Increase (3) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 49 credited to IRWD for their agreed-upon share of capital assets and equity share in OC San’s Joint Works Treatment Facilities are calculated as prescribed in the agreements. Any amounts credited to IRWD are not refunded in cash but are held as a credit to satisfy future contributions required of IRWD. Amounts owed from IRWD are invoiced on a quarterly or annual basis. As a result, a balance of $30,307,007 was reported in due to other governmental agency as of June 30, 2025. Annual Cash Reserve Requirement The cash reserve contribution requirement from IRWD is $16.0 million at June 30, 2025, in accordance with Amendment No. 2 to the Agreement between IRWD and OC San Acquiring Ownership Interests, Assigning Rights, and Establishing Obligations. This cash reserve requirement is recognized as a liability to IRWD. (9)Due From Other Governmental Agency On July 5, 2023, an amendment to the Groundwater Replenishment System agreement between OC San and the Orange County Water District (OCWD) revised the repayment plan for reimbursements from OCWD to OC San. The amended terms included returning the amount previously reimbursed by OCWD for the Plant 2 Plant Water Pump Station Relocation Project (J-117B) and payment of all J-117B reimbursements, with an accrual of 2% interest, no later than six months after notice of completion for the project, currently anticipated to be in 2027. The previously reimbursed amount of $10,273,177 was returned to OCWD on August 1, 2023, and revised payment terms were applied to subsequent quarterly invoice amounts. The amount owed from OCWD of $18,067,430 was reported in due from other governmental agency at June 30, 2025, consisting of $17,364,822 in outstanding invoices and $702,608 in accrued interest. (10)Commitments and Contingencies Construction Commitments OC San has active construction projects to add additional capacity, improve treatment, or replace/rehabilitate existing assets. At June 30, 2025, the outstanding commitments with contractors totaled $460,875,710. Litigation Certain claims involving disputed construction costs have arisen in the ordinary course of business. Additionally, OC San is a defendant in lawsuits. Although the outcome of these matters is not presently determinable, management does not expect that the resolution of these matters will have a material adverse impact on the financial condition of OC San. (11)Restatement – Adoption of New Accounting Standard During the year ended June 30, 2025, OC San implemented GASB Statement No. 101, Compensated Absences. The provisions of this standard modernize the types of leave that are considered a compensated absence and provide guidance for a consistent recognition and measurement of the compensated absence liability. Therefore, compensated absences current portion and compensated absences noncurrent portion were increased by $2,601,822 and ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements (Continued) For the Year Ended June 30, 2025 50 $1,766,791, respectively, as of July 1, 2024. The effect of this change in accounting principle is described in the table below: (12) Subsequent Events Debt Refunding On September 24, 2025, the Board of Directors of the Orange County Sanitation District and the Orange County Sanitation District Financing Corporation adopted resolutions authorizing the issuance and sale of Wastewater Refunding Revenue Obligations, Series 2025A, in an aggregate principal amount not to exceed $120,000,000. The obligations will be issued to refund the Series 2016A wastewater refunding revenue obligations (Series 2016A). The resolutions also authorize the execution and delivery of related agreements, including an Installment Purchase Agreement, Trust Agreement, Purchase Agreement, Continuing Disclosure Agreement, and Escrow Agreement, as well as the distribution of an official statement in connection with the offering. Property Acquisition On October 22, 2025, OC San’s Board of Directors approved a Purchase Agreement for the acquisition of property located at 18250 Euclid Street, Fountain Valley, for a total purchase price of $26,710,000. The property consists of an approximately 62,838 square foot building situated on about 3.54 acres of land. As of the date of these financial statements, the Purchase Agreement has not yet been executed. However, OC San expects to sign the agreement and place an Initial Deposit of $800,000 in late October 2025. The transaction is contingent upon a 45-day due diligence period, during which OC San has the right to terminate the Purchase Agreement for any reason, with the Initial Deposit being fully refundable. If the due diligence period is completed successfully and all conditions are met, the purchase shall close 15 days after the due diligence period ends. Net Position $3,177,447,066 $(4,368,613) $3,173,078,453 Change in Accounting Principles As of July 1, 2024, as previously stated As of July 1, 2024, as restated ORANGE COUNTY SANITATION DISTRICT REQUIRED SUPPLEMENTARY INFORMATION 51 ORANGE COUNTY SANITATION DISTRICT Schedule of District's Proportionate Share of the Net Pension Liability (Asset) Orange County Employees Retirement System (OCERS) Pension Plan Last 10 Fiscal Years (1) 2016 2017 2018 2019 2020 0.74% (0.20%) (0.80%) 0.47% (0.97%) 42,439,759$ (10,384,508)$ (39,571,100)$ 29,029,147$ (49,446,615)$ 59,789,927$ 60,000,017$ 62,341,796$ 66,475,479$ 71,395,906$ 70.98% (17.31%) (63.47%) 43.67% (69.26%) 92.74% 101.70% 105.96% 95.86% 106.64% 2021 2022 2023 2024 2025 (1.63%) (8.72%) (0.20%) (0.38%) (0.92%) (68,643,378)$ (178,731,245)$ (10,604,801)$ (18,531,537)$ (36,606,252)$ 73,290,519$ 73,539,248$ 74,669,376$ 77,104,645$ 83,217,902$ (93.66%) (243.04%) (14.20%) (24.03%) (43.99%) 108.50% 121.74% 101.22% 101.98% 103.71% Notes to Schedule: (1) Change in Assumptions: Proportionate share of the net pension liability (asset) Proportion of the net pension liability (asset) Fiscal Year Ended June 30, For the fiscal year ended June 30, 2025, the inflation rate remained unchanged at 2.50% (retiree cost-of-living assumption maintained at 2.75%). Projected salary increases changed to 3.90% - 10.25%. Mortality assumptions were based on the Pub- 2010 General Employee Amount-Weighted Above-Median Mortality Table (separate tables for males and females), projected generationally with the two-dimensional mortality improvement scale MP-2021. Covered payroll Proportionate share of the net pension liability (asset) as a percentage of covered payroll OCERS' fiduciary net position as a percentage of the total pension liability Proportion of the net pension liability (asset) Proportionate share of the net pension liability (asset) Fiscal Year Ended June 30, Covered payroll Proportionate share of the net pension liability (asset) as a percentage of covered payroll OCERS' fiduciary net position as a percentage of the total pension liability The amounts presented for each fiscal year were determined as of December 31. 52 ORANGE COUNTY SANITATION DISTRICT Schedule of District Contributions Orange County Employees Retirement System (OCERS) Pension Plan Last 10 Fiscal Years 2016 2017 2018 2019 2020 12,222,849$ 7,709,734$ 7,525,655$ 7,769,431$ 8,739,661$ (12,222,849) (7,709,734) (7,525,655) (7,769,431) (8,739,661) -$ -$ -$ -$ -$ 60,595,474$ 62,266,907$ 65,390,144$ 69,101,109$ 69,688,759$ 20.17% 12.38% 11.51% 11.24% 12.54% 2021 2022 2023 2024 2025 (2) 8,479,429$ 8,537,920$ 8,816,866$ 9,172,411$ 9,725,737$ (8,479,429) (8,537,920) (8,816,866) (9,172,411) (9,725,737) -$ -$ -$ -$ -$ 72,191,190$ 74,053,285$ 75,739,101$ 80,489,089$ 86,501,557$ 11.75% 11.53% 11.64% 11.40% 11.24% Notes to Schedule: (1) (2) Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method. Amortization method Level Percent of Payoll (3.00% payroll growth assumed in the valuation). Asset valuation method Market value of assets. Inflation 2.50% Salary increases Varies by service and include inflation and "across-the-board" salary increases. Investment rate of return 7%, net of pension plan administrative and investment expense, including inflation. Mortality Rates Contributions in relation to the contractually required contribution Contractually required contribution Fiscal Year Ended June 30, Pub-2010 General Healthy Retiree Amount-Weighted Above-Median Mortality Table (separate tables for males and females) increased by 5% for females, projected 30 years (from 2010) with the two-dimensional mortality improvement scale MP-2021, weighted 40% male and 60% female. Contribution deficiency (excess) Covered payroll (1) Contributions as a percentage of covered payroll Fiscal Year Ended June 30, Contractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) Covered payroll (1) Contributions as a percentage of covered payroll Covered payroll is based on the fiscal year ended June 30. Valuation dates were December 31, 2021, and December 31, 2022. 53 ORANGE COUNTY SANITATION DISTRICT Schedule of District's Total Pension Liability Additional Retiree Benefit Account (ARBA) Last 10 Fiscal Years 2016 2017 2018 2019 2020 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$ 62,977,577$ 65,120,945$ 68,126,103$ 71,948,599$ 74,602,862$ 29.08% 28.36% 30.58% 29.99% 28.73% 2021 2022 2023 2024 2025 23,320,422$ 20,382,770$ 20,098,783$ 21,013,679$ 18,366,497$ 78,413,423$ 79,472,505$ 82,806,556$ 86,671,018$ 93,022,084$ 29.74% 25.65% 24.27% 24.25% 19.74% Notes to Schedule: (1) Change in Assumptions: For the fiscal year ended June 30, 2025, the discount rate used to measure the total pension liability was 5.20%, an increase from the discount rate of 3.97% for the year ended June 30, 2024. Total pension liability Fiscal Year Ended June 30, Covered employee payroll (1) Total pension liability as a percentage of covered-employee payroll Fiscal Year Ended June 30, Total pension liability Covered employee payroll (1) Total pension liability as a percentage of covered-employee payroll This plan is not administered through a trust or equivalent arrangement, thus covered employee payroll is used. Covered employee payroll represents total payroll of employees that are provided benefits through the pension plan for the fiscal year ended June 30. 54 ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in District's Total Pension Liability (1) Additional Retiree Benefit Account (ARBA) Last 10 Fiscal Years 2016 2017 2018 2019 2020 16,680,614$ 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ Changes in the year: Service cost 270,223 278,330 553,795 570,409 576,661 Interest on total pension liability 626,386 593,711 649,192 663,852 608,775 - - - - (2,263,797) Changes of assumptions 1,230,327 (70,952) 1,889,274 328,481 1,823,672 Benefit payments (494,428) (646,850) (728,450) (816,450) (888,120) Net changes 1,632,508 154,239 2,363,811 746,292 (142,809) Ending balance at June 30 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$ 2021 2022 2023 2024 2025 (2) 21,434,655$ 23,320,422$ 20,382,770$ 20,098,783$ 21,013,679$ Changes in the year: Service cost 703,496 835,711 545,116 438,173 439,161 Interest on total pension liability 530,599 496,575 751,286 813,972 826,740 - 898,171 - 1,902,002 - Changes of assumptions 1,619,642 (4,129,069) (434,329) (1,007,931) (2,644,433) Benefit payments (967,970) (1,039,040) (1,146,060) (1,231,320) (1,268,650) Net changes 1,885,767 (2,937,652) (283,987) 914,896 (2,647,182) Ending balance at June 30 23,320,422$ 20,382,770$ 20,098,783$ 21,013,679$ 18,366,497$ Notes to Schedule: (1) (2) Methods and assumptions used to determine total pension liability: Actuarial cost method Entry Age, Level Percent of Pay. Recognition of deferred inflows and outflows of resources Salary increases 3.00% Inflation Rate 2.50% Preretirement Mortality Postretirement Mortality Fiscal Year Ended June 30, Beginning balance at July 1 Difference between expected and actual experience Difference between expected and actual experience Beginning balance at July 1 Fiscal Year Ended June 30, OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its pension obligation. As a result, there are no plan assets and the total pension liability is equal to the net pension liability. Valuation date was July 1, 2023. Closed period equal to the average of the expected remaining service lives of all employees provided with Pension. Pub-2010 General Employee Amount-Weighted Above-Median Mortality Table (separate tables for males and females), projected generationally with the two-dimensional mortality improvement scale MP-2021. Pub-2010 General Healthy Retiree Amount-Weighted Above-Median Mortality Table (separate tables for males and females), with rates increased by 5%, projected generationally with the two-dimensional mortality improvement scale MP-2021. 55 ORANGE COUNTY SANITATION DISTRICT Schedule of District's Total OPEB Liability (3) Post-Employment Medical Benefits Plan Last 10 Fiscal Years (1) 2017 2018 2019 2020 2021 6,398,694$ 5,025,395$ 4,013,291$ 2,483,644$ 1,332,528$ 65,120,945$ 68,126,103$ 71,948,599$ 74,602,862$ 78,413,423$ 9.83% 7.38% 5.58% 3.33% 1.70% 2022 2023 2024 2025 2,077,772$ 1,034,882$ 5,182,488$ 4,409,328$ 79,472,505$ 82,806,556$ 86,671,018$ 93,022,084$ 2.61% 1.25% 5.98% 4.74% Notes to Schedule: (1) (2) (3) Change in Assumptions: Fiscal Year Ended June 30, The amounts presented for each fiscal year were determined as of June 30. Data for fiscal year ended June 30, 2016 is not available in a comparable format. For the fiscal year ended June 30, 2025, the discount rate used to measure the total pension liability was 5.20%, an increase from the discount rate of 3.97% for the year ended June 30, 2024. This plan is not administered through a trust or equivalent arrangement, thus covered employee payroll is used. Covered employee payroll represents total payroll of employees that are provided benefits through the OPEB plan for the fiscal year ended June 30. There are no assets in a trust compliant with GASB codification P52.101. OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability is equal to the net OPEB liability. Total OPEB liability Covered employee payroll (2) Total OPEB liability as a percentage of covered-employee payroll Fiscal Year Ended June 30, Total OPEB liability Covered employee payroll (2) Total OPEB liability as a percentage of covered-employee payroll 56 ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in District's Total OPEB Liability (3) Post-Employment Medical Benefits Plan Last 10 Fiscal Years (1) 2018 2019 2020 2021 2022 Beginning balance at July 1 6,398,694$ 5,025,395$ 4,013,291$ 2,483,644$ 1,332,528$ Changes in the year: Service cost 18,182 16,489 4,334 5,238 8,426 Interest on total OPEB liability 177,395 159,195 98,047 45,840 57,237 - - (115,924) - 2,477,916 Changes of assumptions (95,279) 78,935 88,289 41,063 (285,984) Benefit payments (2)(1,473,597) (1,266,723) (1,604,393) (1,243,257) (1,512,351) Net changes (1,373,299) (1,012,104) (1,529,647) (1,151,116) 745,244 Ending balance at June 30 5,025,395$ 4,013,291$ 2,483,644$ 1,332,528$ 2,077,772$ 2023 2024 2025 (4) Beginning balance at July 1 2,077,772$ 1,034,882$ 5,182,488$ Changes in the year: Service cost 3,803 153,009 155,173 Interest on total OPEB liability 55,501 211,428 194,999 (77,497) 3,457,311 - Changes of assumptions (15,594) 1,276,851 (263,245) Benefit payments (2)(1,009,103) (950,993) (860,087) Net changes (1,042,890) 4,147,606 (773,160) Ending balance at June 30 1,034,882$ 5,182,488$ 4,409,328$ Notes to Schedule: (1) (2) (3) (4) Methods and assumptions used to determine total OPEB liability: Actuarial cost method Entry Age, Level Percent of Pay. Valuation of fiduciary net position Recognition of deferred inflows and outflows of resources Salary increases 3.00% Inflation Rate Health cost trend rate Preretirement Mortality Postretirement Mortality Fiscal Year Ended June 30, Difference between expected and actual experience Difference between expected and actual experience Fiscal Year Ended June 30, Pub-2010 General Employee Amount-Weighted Above-Median Mortality Table (separate tables for males and females), projected generationally with the two-dimensional mortality improvement scale MP-2021. Pub-2010 General Healthy Retiree Amount-Weighted Above-Median Mortality Table (separate tables for males and females), with rates increased by 5%, projected generationally with the two-dimensional mortality improvement scale MP-2021. The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2016 through 2017 is not available in a comparable format. Benefit payments include implicit subsidy associated with benefits paid. No assets held in an irrevocable trust as of the measurement date. 2.50% 5.25% for 2025-2029, 5.00% for 2030-2039, 4.75% for 2040-2049, 4.50% for 2050-2069, and 4.00% for 2070 and later years: Medicare ages: 4.50% for 2025-2029 and 4.00% for 2030 and later years. OC San funds benefits on a pay-as-you-go basis and elected not to pre-fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability is equal to the net OPEB liability. Valuation date was July 1, 2023. Closed period equal to the average of the expected remaining service lives of all employees provided with OPEB. 57 (THIS PAGE INTENTIONALLY LEFT BLANK) 58 ORANGE COUNTY SANITATION DISTRICT SUPPLEMENTARY INFORMATION 59 ORANGE COUNTY SANITATION DISTRICT Combining Area Schedule of Net Position June 30, 2025 Revenue Consolidated Area No. 14 Revenue Area Totals Current assets: Cash and cash equivalents 4,372,851$ 125,611,700$ 129,984,551$ Investments 25,934,156 744,967,865 770,902,021 Accounts receivable, net of allowance for uncollectibles - 9,544,419 9,544,419 Accrued interest receivable - 5,795,182 5,795,182 Connection fees receivable - 3,371,695 3,371,695 Property tax receivable - 2,149,756 2,149,756 Lease receivable, current portion - 396,114 396,114 Inventories - 12,620,950 12,620,950 Prepaid expenses - 2,693,612 2,693,612 Total current assets 30,307,007 907,151,293 937,458,300 Noncurrent assets: Restricted: Cash and cash equivalents - 701,418 701,418 Investments - 16,882,220 16,882,220 Accrued interest receivable - 1,332 1,332 Net pension asset - OCERS - 36,606,252 36,606,252 Unrestricted: Non-depreciable capital assets 35,639,948 879,675,806 915,315,754 Depreciable capital assets, net of accumulated depreciation 87,951,372 2,101,578,823 2,189,530,195 Due from other governmental agency - 18,067,430 18,067,430 Lease receivable, noncurrent portion - 89,605 89,605 Other noncurrent assets, net - 10,344 10,344 Total noncurrent assets 123,591,320 3,053,613,230 3,177,204,550 Total assets 153,898,327 3,960,764,523 4,114,662,850 Deferred outflows of resources: Deferred outflows related to refundings - 7,519,718 7,519,718 Deferred outflows related to pensions - 60,347,568 60,347,568 Deferred outflows related to OPEB - 3,670,306 3,670,306 Total deferred outflows of resources - 71,537,592 71,537,592 Total assets and deferred outflows of resources 153,898,327 4,032,302,115 4,186,200,442 Current liabilities: Accounts payable and accrued expenses - 59,502,862 59,502,862 Retentions payable - 10,991,447 10,991,447 Interest payable - 11,292,100 11,292,100 Due to other governmental agency 30,307,007 - 30,307,007 Long-term obligations, current portion - 58,408,438 58,408,438 Total pension liability - ARBA, current portion - 1,233,691 1,233,691 Total OPEB liability, current portion - 744,627 744,627 Total current liabilities 30,307,007 142,173,165 172,480,172 Noncurrent liabilities: Long-term obligations, noncurrent portion - 598,572,064 598,572,064 Total pension liability - ARBA, noncurrent portion - 17,132,806 17,132,806 Total OPEB liability, noncurrent portion - 3,664,701 3,664,701 Total noncurrent liabilities - 619,369,571 619,369,571 Total liabilities 30,307,007 761,542,736 791,849,743 Deferred inflows of resources: Deferred inflows related to leases - 435,610 435,610 Deferred inflows related to refundings - 5,438,617 5,438,617 Deferred inflows related to pensions - 14,996,877 14,996,877 Deferred inflows related to OPEB - 233,331 233,331 Total deferred inflows of resources - 21,104,435 21,104,435 Total liabilities and deferred inflows of resources 30,307,007 782,647,171 812,954,178 Net position: Net investment in capital assets: Collection system 12,125,674 647,391,770 659,517,444 Treatment and disposal land 2,648,354 51,091,313 53,739,667 Treatment and disposal system 108,817,292 2,282,771,547 2,391,588,839 Capital-related liabilities - (685,050,090) (685,050,090) Subtotal 123,591,320 2,296,204,540 2,419,795,860 Restricted for OCERS pension benefits - 53,900,943 53,900,943 Unrestricted - 899,549,461 899,549,461 Total net position 123,591,320$ 3,249,654,944$ 3,373,246,264$ 60 ORANGE COUNTY SANITATION DISTRICT Combining Area Schedule of Revenues, Expenses, and Change in Net Position For the Year Ended June 30, 2025 Revenue Consolidated Area No. 14 Revenue Area Totals Operating revenues: Service charges 2,237,410$ 350,995,285$ 353,232,695$ Permit and inspection fees 8,513 1,169,495 1,178,008 Total operating revenues 2,245,923 352,164,780 354,410,703 Operating expenses other than depreciation and amortization: Salaries and benefits 3,936,228 100,646,868 104,583,096 Utilities 574,803 14,444,103 15,018,906 Supplies, repairs and maintenance 2,158,510 62,503,721 64,662,231 Contractual services 1,249,805 33,637,261 34,887,066 Feasibility studies 85,766 7,074,678 7,160,444 Other operating expenses 337,784 11,276,391 11,614,175 Total operating expenses other than depreciation and amortization 8,342,896 229,583,022 237,925,918 Operating income (loss) before depreciation and amortization (6,096,973) 122,581,758 116,484,785 Depreciation and amortization 5,069,340 125,177,038 130,246,378 Operating income (loss)(11,166,313) (2,595,280) (13,761,593) Non-operating revenues: Property taxes 4,300,693 134,011,582 138,312,275 Investment and interest income 1,711,008 51,294,882 53,005,890 Contributions from other governments 19,508,567 34,710 19,543,277 Other non-operating revenues 51,139 1,696,682 1,747,821 Total non-operating revenues 25,571,407 187,037,856 212,609,263 Non-operating expenses: Interest 2,602 15,660,218 15,662,820 Loss on disposal of assets 32,076 798,168 830,244 Other non-operating expenses 3,074 101,831 104,905 Total non-operating expenses 37,752 16,560,217 16,597,969 Income (loss) before capital contributions 14,367,342 167,882,359 182,249,701 Capital contributions: Capital facilities capacity charges - 16,265,667 16,265,667 Capital contributions from other governments 32,136 1,620,307 1,652,443 Total capital contributions 32,136 17,885,974 17,918,110 Change in net position 14,399,478 185,768,333 200,167,811 Net position - beginning, as previously reported 109,191,842 3,068,255,224 3,177,447,066 Adjustments (Note 11)- (4,368,613) (4,368,613) Total net position - beginning, as restated 109,191,842 3,063,886,611 3,173,078,453 Total net position - ending 123,591,320$ 3,249,654,944$ 3,373,246,264$ 61 ORANGE COUNTY SANITATION DISTRICT Combining Area Schedule of Cash Flows For the Year Ended June 30, 2025 Revenue Consolidated Area No. 14 Revenue Area Eliminations Totals Cash flows from operating activities: Receipts from customers and users 14,323,416$ 352,768,574$ -$ 367,091,990$ Payments to employees (3,936,228) (93,716,272) - (97,652,500) Payments to suppliers (4,409,742) (130,453,136) - (134,862,878) Receipts for other activities 36,648 1,275,697 - 1,312,34 Net cash provided by (used in) operating activities 6,014,094 129,874,863 - 135,888,957 Cash flows from noncapital financing activities: Proceeds from property taxe 4,300,693 133,980,74 - 138,281,43 Net cash provided by (used in) noncapital financing activitie 4,300,693 133,980,74 - 138,281,43 Cash flows from capital and related financing activities Capital facilities capacity charge - 14,893,451 - 14,893,451 Contributions from other government 19,540,70 1,655,017 (7,294,846 13,900,87 Receipts from lease agreement 13,700 458,907 - 472,607 Additions to capital asset (19,499,110 (228,295,795 19,499,11 (228,295,795 Disposal of capital assets - 12,204,26 (12,204,264 - Principal payments on debt obligation - (34,085,000 - (34,085,000 Interest paid (2,602) (24,919,944 - (24,922,546 Net cash provided by (used in) capital and related financing activitie 52,691 (258,089,100 - (258,036,409 Cash flows from investing activities: Proceeds from sale of investments 12,906,72 746,696,97 - 759,603,70 Purchases of investments (22,319,636 (770,437,448 - (792,757,084 Interest received 724,158 22,996,14 - 23,720,30 Net cash provided by (used in) investing activitie (8,688,755 (744,322) - (9,433,077 Net increase (decrease) in cash and cash equivalent 1,678,723 5,022,18 - 6,700,908 Cash and cash equivalents, beginning of yea 2,694,128 121,290,93 - 123,985,061 Cash and cash equivalents, end of yea 4,372,851$ 126,313,11$ -$ 130,685,96$ Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) (11,166,313)$ (2,595,280)$ -$ (13,761,593)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 5,069,340 125,177,038 - 130,246,378 Other non-operating revenues 33,574 1,173,866 - 1,207,440 (Increase)/decrease in operating assets and deferred outflows: Accounts receivable - 603,794 - 603,794 Inventories - (1,099,297) - (1,099,297) Prepaid expenses - (273,292) - (273,292) Net pension asset - OCERS - (18,074,715) - (18,074,715) Deferred outflows related to pensions - 23,751,355 - 23,751,355 Deferred outflows related to OPEB - 531,928 - 531,928 Increase/(decrease) in operating liabilities and deferred inflows: Accounts payable and accrued expenses - 2,411,455 - 2,411,455 Due to other governmental agency 12,077,493 - - 12,077,493 Compensated absences - 687,232 - 687,232 Claims and judgments - (266,854) - (266,854) Total pension liability - ARBA - (2,647,182) - (2,647,182) Total OPEB liability - (773,160) - (773,160) Deferred inflows related to pensions - 1,034,644 - 1,034,644 Deferred inflows related to OPEB - 233,331 - 233,331 Net cash provided by (used in) operating activitie 6,014,094$ 129,874,86$ -$ 135,888,95$ Noncash activities: Unrealized gain (loss) on the fair value of investments 985,857$ 28,681,998$ 29,667,855$ Capital assets acquired through accounts payable - 6,882,913 6,882,913 Capital facilities capacity charges acquired - 1,372,216 1,372,216 62 ORANGE COUNTY SANITATION DISTRICT STATISTICAL SECTION Contents Pages Financial Position and Trends 65 - 69 Revenue Capacity 70 - 72 Debt Capacity 73 - 75 Operating Information 76 - 79 Demographic and Economic Factors 80 - 83 This part of the Annual Comprehensive Financial Report of the Orange County Sanitation District (OC San) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about OC San's overall financial health. These schedules contain information to help the reader assess OC San's most significant revenue source of sewer service fees. These schedules offer demographic information to help the reader understand the environment within which OC San's financial activities take place. These schedules contain current and trend information to help the reader understand OC San's financial position and how OC San's financial performance and well-being have changed over time. These schedules contain data to help the reader understand how the information in OC San's financial report relates to the services it provides and the activities it performs. These schedules present information to help the reader assess the affordability of OC San's current levels of outstanding debt and OC San's ability to issue additional debt in the future. All of OC San's debt is recorded in a proprietaryfund; consequently, manyof the schedules which are applicable to governmental funds are not presented. 63 ORANGE COUNTY SANITATION DISTRICT Net Position by Component (Dollars in Thousands) Last Ten Fiscal Years Fiscal Year 2015-16 1,429,269$ -$ 489,303$ 1,918,572$ (1) 2016-17 1,504,898 10,385 525,942 2,041,225 2017-18 1,568,118 39,571 587,100 2,194,789 (2) 2018-19 1,647,723 - 712,779 2,360,502 2019-20 1,678,041 49,447 811,522 2,539,010 2020-21 1,740,102 68,643 901,637 2,710,382 2021-22 1,825,490 191,802 797,895 2,815,187 2022-23 1,954,939 24,678 1,000,075 2,979,692 2023-24 2,270,960 34,278 872,209 3,177,447 2024-25 2,419,796 53,901 899,549 3,373,246 (3) Notes (1)Beginning net position restated due to implementation of GASB 73. (2)Beginning net position restated due to implementation of GASB 75. (3)Beginning net position restated due to implementation of GASB 101. (4)FY 2016-17 to 2022-23 net position restated to reflect amounts restricted for OCERS pension benefits. Source: Orange County Sanitation District's Financial Management Division. Total Net Position Net Investment in Capital Assets Unrestricted (4) Restricted for Pension Benefits (4) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Net Investment in Capital Assets Restricted for Pension Benefits Unrestricted 64 D D D ORANGE COUNTY SANITATION DISTRICT Revenues and Gross Capital Contributions by Source (Dollars in Thousands) Last Ten Fiscal Years Permit &Investment Fiscal Service Total Property & Interest Total Non- Capital Year Charges Fees Operating Taxes Income (Loss Other (1)Operating Contributions (1) 2015-16 314,477$ 951$ 315,428$ 84,407$ 9,183$ 14,658$ 108,248$ 17,974$ 2016-17 312,237 1,045 313,282 88,284 3,081 27,146 118,511 16,351 2017-18 316,329 1,170 317,499 94,188 3,230 4,055 101,473 21,633 2018-19 317,291 1,199 318,490 99,534 29,102 27,197 155,833 23,797 2019-20 339,895 1,169 341,064 104,492 33,669 6,731 144,892 29,034 2020-21 335,569 1,131 336,700 110,245 1,694 11,176 123,115 33,936 2021-22 327,824 1,271 329,095 119,186 (35,335) 7,840 91,691 26,083 2022-23 331,382 1,399 332,781 125,467 12,027 20,671 158,165 32,264 2023-24 338,713 941 339,654 131,608 46,640 35,943 214,191 18,242 2024-25 353,233 1,178 354,411 138,312 53,006 21,291 212,609 17,918 Notes Source: Orange County Sanitation District's Financial Management Division. Non-Operating RevenueOperating Revenue Inspection (1)FY 2017-18 to 2020-21 restated to reflect capital contributions from other governments. Fluctuations in other non-operating revenue are primarily due to integration contributions charged or credited to the Irvine Ranch Water District, refer to Basic Financial Statements Note 8 for details. $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000 $300,000 $325,000 $350,000 $375,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Operating Revenue Non-Operating Revenue Capital Contributions 65 D D D ORANGE COUNTY SANITATION DISTRICT Expenses by Type (Dollars in Thousands) Last Ten Fiscal Years Operating Expense Non-Operating Expense Fiscal Year Salaries & Benefits Utilities Maint & Other Depr & Amort Total Operating Interest Expense Other (1) Total Non Operating 2015-16 75,576$ 7,246$ 70,679$ 90,502$ 244,003$ 27,597$ 6,482$ 34,079$ 2016-17 74,291 6,119 69,843 96,320 246,573 25,648 53,270 78,918 2017-18 67,418 7,298 70,840 97,399 242,955 35,011 1,483 36,494 2018-19 85,506 7,733 73,347 102,239 268,825 34,466 29,116 63,582 2019-20 82,917 8,622 76,794 113,888 282,221 33,833 20,428 54,261 2020-21 74,772 9,789 83,457 116,452 284,470 34,837 3,072 37,909 2021-22 57,004 11,046 88,065 130,465 286,580 30,027 25,457 55,484 2022-23 96,883 15,924 94,405 123,611 330,823 25,893 1,989 27,882 2023-24 95,983 14,893 111,797 116,205 338,878 31,067 4,387 35,454 2024-25 104,583 15,019 118,324 130,246 368,172 15,663 935 16,598 Notes Source: Orange County Sanitation District's Financial Management Division. (1)Fluctuations in other non-operating expense are primarily due to integration contributions charged or credited to the Irvine Ranch Water District, refer to Note 8 of the Notes to Basic Financial Statements for details. $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000 $300,000 $325,000 $350,000 $375,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Operating Expense Non-Operating Expense 66 □ □ ORANGE COUNTY SANITATION DISTRICT Change in Net Position (Dollars in Thousands) Last Ten Fiscal Years Fiscal Total Total Year 2015-16 441,650$ 278,082$ 163,568$ 1,755,004$ (1)1,918,572$ 2016-17 448,144 325,491 122,653 1,918,572 2,041,225 2017-18 440,605 279,449 161,156 2,033,633 (2)2,194,789 2018-19 498,120 332,407 165,713 2,194,789 2,360,502 2019-20 514,990 336,482 178,508 2,360,502 2,539,010 2020-21 493,751 322,379 171,372 2,539,010 2,710,382 2021-22 446,869 342,064 104,805 2,710,382 2,815,187 2022-23 523,210 358,705 164,505 2,815,187 2,979,692 2023-24 572,087 374,332 197,755 2,979,692 3,177,447 2024-25 584,938 384,770 200,168 3,173,078 (3)3,373,246 Notes (1)Beginning net position restated due to implementation of GASB 73. (2)Beginning net position restated due to implementation of GASB 75. (3)Beginning net position restated due to implementation of GASB 101. Source: Orange County Sanitation District's Financial Management Division. Change in Beginning Ending Net PositionRevenues Expenses Net Position Net Position $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Ending Net Position by Fiscal Year 67 ORANGE COUNTY SANITATION DISTRICT Cash and Investment Reserve Balances (Dollars in Millions) Last Ten Fiscal Years Fiscal Year Total 2015-16 181$ 57$ 190$ 117$ 545$ 2016-17 174 57 173 107 511 2017-18 173 57 350 100 680 2018-19 177 57 429 97 760 2019-20 178 57 552 94 881 2020-21 128 100 639 94 961 2021-22 134 100 659 91 984 2022-23 140 100 685 79 1,004 2023-24 148 100 525 76 849 2024-25 156 100 601 61 918 Notes Source: Orange County Sanitation District's Financial Management Division. The Debt Service Requirements Reserve is held pursuant to the provisions of certificates of participation issues, and the monies are not available for the general needs of the Orange County Sanitation District. Debt Service Requirements Self- Insurance Capital Improvement Program Cash Flow Contingency The Cash Flow Contingency Reserve is to fund operations, maintenance, and certificates of participation debt service expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and sewer service user fees. The Self-Insurance Reserve is to provide requirements for property damage including fire, flood and earthquake, general liability and workers' compensation. The Capital Improvement Program Reserve is to fund annual increments of the capital improvement program with a target level at one half of the average annual capital improvement program over the next 10 years. The Board of Directors of the Orange County Sanitation District has established the criteria below to determine the total funds required as listed in the Accumulated Funds and Reserves Policy: 68 ORANGE COUNTY SANITATION DISTRICT Sewer Service Fees Single Family Residence Rate Last Nine Fiscal Years and Next Fiscal Year 2016-17 327.00$ 2017-18 331.00 2018-19 335.00 2019-20 339.00 2020-21 339.00 2021-22 343.00 2022-23 347.00 2023-24 358.00 2024-25 371.00 2025-26 384.00 Source: Orange County Sanitation District's Financial Management Division. Sewer service fees are comprised of three categories: residential customers, commercial customers, and industrial customers. Although the majority of sewer service fee revenues are from residential and commercial customers (see the schedule of Number of Accounts and Revenues by Customer Class), the fee paid by each residential and commercial customer is less than the individual fees paid by industrial customers. The rates for commercial and industrial customers are derived from the base sewer service fee charged for a single-family residence and are based on the type of business and the strength and volume of waste that is discharged into the sewer system. Due to the complexity of the rate structure for commercial and industrial customers and since the rates are derivatives of the single-familyresidence rate, only the single-family residence rate is presented within the statistical section. Fiscal Year Sewer Service Charge 250 300 350 400 450 500 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 SF R A n n u a l F e e Fiscal Year Annual Sewer Service Fees Single Family Residence 69 ----- ORANGE COUNTY SANITATION DISTRICT Number of Accounts and Revenues by Customer Class (Dollars in Millions) Last Ten Fiscal Years Number o Total Percentage Total Percentage Equivalent Sewer Svc. of Sewe Number o Sewer Svc. of Sewe Fiscal Single-Family Charge Service Charge Custome Charge Service Charge ea Dwellings (1)Revenue Revenues Accounts Revenue Revenues 2015-16 863,317 278.0$ 96%450 12.6$ 4% 2016-17 859,869 281.2 95%466 13.8 5% 2017-18 871,338 288.4 94%473 17.9 6% 2018-19 871,312 291.9 97%476 9.4 3% 2019-20 904,886 306.8 96%473 12.8 4% 2020-21 908,219 307.9 96%467 12.6 4% 2021-22 900,327 308.8 96%462 12.6 4% 2022-23 893,270 310.0 95%446 14.8 5% 2023-24 886,879 317.5 96%447 14.6 4% 2024-25 894,546 331.9 96%452 14.8 4% Notes Source: Orange County Sanitation District's Financial Management Division. Residential/Commercial Industrial (1)- Number of equivalent single-family dwellings is an estimate, calculated by dividing residential/commercial revenue by the sewer service fee for each fiscal year. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Residential/Commercial Users Industrial Users 70 D ■ ORANGE COUNTY SANITATION DISTRICT Principal Sewer Service Customers For the Current Fiscal Year and Nine Years Ago Fiscal Year Ended 6/30/25 Fiscal Year Ended 6/30/16 Industrial % to Total Industrial % to Total Permittee Service Permittee Service Service Charge Service Charge Customer Charges Rank Revenue Charges Rank Revenue House Foods America Corp. (East)1,903,963$ 1 0.54% House Foods America Corp. (West)1,596,915 2 0.45%1,137,028$ 1 0.36% Stremicks Heritage Foods, LLC 1,186,415 3 0.34%735,840 3 0.23% Van Law Food Products, Inc 1,146,176 4 0.32%446,942 9 0.14% MBV-CA, LLC 957,543 5 0.27% Newport Fab, LLC (Tower Semiconductor, Inc) 861,417 6 0.24%541,379 6 0.17% Pulmuone Foods USA, Inc. (East)726,274 7 0.21%667,744 4 0.21% Ameripec, Inc 533,989 8 0.15%494,287 7 0.16% MCP Foods, Inc (DSM-Firmenich)416,590 9 0.12%649,886 5 0.21% Beverage Visions LLC 374,437 10 0.11% Kimberly-Clark Worldwide, Inc.1,123,748 2 0.36% Nor-Cal Beverage Company (Main)453,737 8 0.14% Nor-Cal Beverage Company (NBC)409,575 10 0.13% 9,703,719$ 2.75%6,660,166$ 2.11% Source: Orange County Sanitation District's Financial Management Division. Although the majority of sewer service fee revenues are from residential and commercial customers (see the schedule of Number of Accounts and Revenues by Customer Class), the fee paid by each residential and commercial customer is customarily less than the individual fees paid by industrial customers. Consequently, this schedule shows the largest industrial sewer service fee customers. 71 ORANGE COUNTY SANITATION DISTRICT Ratio of Annual Debt Service to Total Expenses (Dollars in Thousands) Last Ten Fiscal Years Total Fiscal Total Debt Operating Year Principal (1) Interest (2) Service (3) Expenses (4) 2015-16 29,405$ 50,301$ 79,706$ 153,501$ 51.93% 2016-17 35,575 47,143 82,718 150,253 55.05 2017-18 32,140 43,466 75,606 145,556 51.94 2018-19 31,655 44,481 76,136 166,586 45.70 2019-20 32,730 43,664 76,394 168,333 45.38 2020-21 30,430 42,061 72,491 168,018 43.14 2021-22 33,875 40,564 74,439 156,115 47.68 2022-23 30,035 37,880 67,915 207,212 32.78 2023-24 (5)165,750 34,483 200,233 222,673 89.92 2024-25 34,085 27,701 61,786 237,926 25.97 Notes Source: Orange County Sanitation District's Financial Management Division. (5) - OC San made an early repayment of $134.2 million of Series 2010C Revenue Obligations. (2) - Excludes amortization of premium/discount and deferred amount. (3) - Debt consists of certificates of participation / revenue obligations. (4) - Excludes depreciation and amortization expense. Ratio of Debt Service to Total Operating Expenses (1) - Excludes principal reductions due to debt refundings. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 72 ORANGE COUNTY SANITATION DISTRICT Debt Coverage Ratios (Dollars in Millions) Last Ten Fiscal Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 (6)2025 Operating & Non-Operating Revenues: Service Charges, Net of Refunds-Regional 278.0$ 281.2$ 288.4$ 291.9$ 306.8$ 307.9$ 308.8$ 310.0$ 317.5$ 331.9$ Service Charges, Net of Refunds-Local (1) 5.7 1.3 (0.1) - - - - - - - Industrial Sewer Service Charges 12.6 13.8 17.9 9.4 12.8 12.6 12.6 14.8 14.6 14.8 SAWPA Assessment 3.2 3.3 2.7 2.9 2.6 2.8 2.8 2.9 3.4 3.4 IRWD Assessment 26.6 36.0 9.9 36.3 20.8 16.0 8.6 18.6 31.8 21.8 Ad Valorem Taxes 84.4 88.3 94.2 99.5 104.5 110.2 119.2 125.5 131.6 138.3 Interest Earnings (2)9.2 3.1 3.2 29.1 33.7 1.7 (35.3) 12.0 46.6 53.0 Other Revenues (3)4.0 4.8 2.8 5.2 4.8 8.6 4.1 7.1 8.3 3.8 Total Revenues 423.7 431.8 419.0 474.3 486.0 459.8 420.8 490.9 553.8 567.0 Operating Expenses (4)153.5 150.3 145.6 166.6 168.3 168.0 156.1 207.2 222.7 237.9 Net Revenues 270.2$ 281.5$ 273.4$ 307.7$ 317.7$ 291.8$ 264.7$ 283.7$ 331.1$ 329.1$ Debt Service Requirements Principal Payments 29.4$ 35.6$ 32.1$ 31.7$ 32.7$ 30.4$ 33.9$ 30.0$ 165.8$ 34.1$ Interest Payments 50.3 47.1 43.5 44.4 43.7 42.1 40.5 37.9 34.4 27.7 Total Debt Service Requirements 79.7$ 82.7$ 75.6$ 76.1$ 76.4$ 72.5$ 74.4$ 67.9$ 200.2$ 61.8$ Coverage Ratios 3.39 3.40 3.62 4.04 4.16 4.02 3.56 4.18 1.65 5.33 Ending Reserves (5)428.0$ 404.0$ 580.0$ 663.0$ 787.0$ 867.0$ 893.0$ 925.0$ 773.0$ 857.0$ Notes (1)- Local Sewer transferred to East Orange County Water District in FY2016-17. (2)- Interest earnings include unrealized gains and losses from investments adjusted to market value. (3)- FY 2017-18 to 2020-21 other revenues restated to remove capital contributions from other governments. (4)- Operating expenses exclude depreciation and amortization expenses. (5)- Excludes debt service reserves in accordance with the Orange County Sanitation District's reserve policy. (6)- OC San made an early repayment of $134.2 million of Series 2010C Revenue Obligations. Source: Orange County Sanitation District's Financial Management Division. Fiscal Year Ending June 30, The Orange County Sanitation District has no legal debt limits as imposed bystate legislation. OC San does have contractual covenants within the existing certificates of participation indenture agreements which require minimum coverage ratios of 1.25. The coverage ratio is calculated as the ratio of net annual revenues available for debt service payments to total annual debt service requirements. - 1.00 2.00 3.00 4.00 5.00 6.00 2011-12 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 73 ORANGE COUNTY SANITATION DISTRICT Ratios of Outstanding Debt Last Ten Fiscal Years Debt as a (1) (4) Percentage COP / Total Median of Median (6) Debt Fiscal Revenue (2) (3) Outstanding Family Family Population per Year Obligations Leases SBITAs Debt Income (5) Income Estimate (7) Capita 2015-16 1,206,722,347$ -$ -$ 1,206,722,347$ 85,000$ 0.007% 2,548,745 473.46 2016-17 1,140,679,773 - - 1,140,679,773 88,000 0.008% 2,578,681 442.35 2017-18 1,095,737,610 - - 1,095,737,610 92,700 0.008% 2,609,419 419.92 2018-19 1,050,502,373 - - 1,050,502,373 97,900 0.009% 2,607,092 402.94 2019-20 1,004,215,901 - - 1,004,215,901 103,000 0.010% 2,589,011 387.88 2020-21 963,115,533 - - 963,115,533 106,700 0.011% 2,550,763 377.58 2021-22 913,102,847 58,158 913,161,005 119,100 0.013% 2,557,216 357.09 2022-23 869,562,663 27,369 613,454 870,203,486 127,800 0.015% 2,532,334 343.64 2023-24 680,407,687 104,402 809,539 681,321,628 129,000 0.019% 2,550,105 267.17 2024-25 634,272,056 70,258 2,304,338 636,646,652 136,600 0.022% 2,568,977 247.82 Notes & Data Sources (4)- Data Source: U.S. Department of Housing and Urban Development. (5)- Data is for the entire county of Orange. (6)- Data Source: Demographic Research Unit, California Department of Finance. (7)- Data is for the estimated population served by the Orange County Sanitation District. (1)- Data Source: Orange County Sanitation District. Debt includes certificates of participation / revenue obligations and is presented net of original issuance premiums. (2)- FY 2021-22 and 2022-23 restated to reflect implementation of GASB Statement No. 87, Leases . Beginning fiscal year ended June 30, 2022, lease contracts previously considered operating are treated as financings of the right to use an asset and, thus, included on this schedule. (3)- FY 2022-23 restated to reflect implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). Beginning fiscal year ended June 30, 2023, contracts for SBITAs are treated as financings of the right to use an asset and, thus, included on this schedule. 74 ORANGE COUNTY SANITATION DISTRICT Comparison of the Volume of Wastewater Treated With Revenues and Expenses Last Ten Fiscal Years Millions of Gallons of Wastewater Fiscal Treated Year Per Day 2015-16 183 2,110.43$ 244,003$ 34,079$ 315,428$ 108,248$ 2016-17 188 2,054.56 246,573 78,918 313,282 118,511 2017-18 185 2,069.30 242,955 36,494 317,499 101,473 2018-19 191 2,274.73 268,825 63,582 318,490 155,833 2019-20 188 2,421.83 282,221 54,261 341,064 144,892 2020-21 182 2,428.28 284,470 37,909 336,700 123,115 2021-22 179 2,254.66 286,580 55,484 329,095 91,691 2022-23 186 2,961.49 330,823 27,882 332,781 158,165 2023-24 193 3,054.47 338,878 35,454 339,654 214,191 2024-25 184 3,415.84 368,172 16,598 354,411 212,609 Notes (1)FY 2017-18 to 2020-21 restated to remove capital contributions from other governments. Source: Orange County Sanitation District's Financial Management Division. Gallons Collection, Treatment & Disposal Cost per Million Non-Operating (In Thousands) Operating (In Thousands) TotalTotal CostsCosts Total Non-Operating Revenues (1) (In Thousands) Total Operating (In Thousands) Revenues 75 ORANGE COUNTY SANITATION DISTRICT Authorized Full-time Equivalents (FTE) by Function Last Ten Fiscal Years Fiscal Year Ending June 30, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Management (1)15 15 15 14 15 18 15 16 19 4 Administrative Services 98 99 99 100 101 101 102 103 106 109 Communications (2)-- - - - - - - -16 Human Resources 27 27 27 27 27 26 26 26 28 28 Environmental Services (3)-91 91 91 92 93 93 93 94 98 Facilities Support Services (3)63 - - - - -- -- - Engineering 127 116 116 116 121 117 116 123 123 124 Operations and Maintenance 294 279 287 288 284 284 287 286 285 285 Total FTEs 624 627 635 636 640 639 639 647 655 664 Notes (1)- Management Discretion positions used on a temporary basis have been excluded from FTE count. (2)- In 2025, Divisional reorganization created Communications Department. (3)- In 2017, Divisional reorganization created Environmental Services and eliminated Facilities Support Services. Source: Orange County Sanitation District's Financial Management Division. 0 100 200 300 400 500 600 700 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Management Administrative Services Communications Human Resources Environmental Services Facilities Support Services Engineering Operations and Maintenance 76 ■ □ □ □ □ □ □ □ ORANGE COUNTY SANITATION DISTRICT Biosolids Produced Last Ten Fiscal Years Fiscal Year Wet Tonnage 2015-16 283,052 2016-17 288,771 2017-18 284,039 2018-19 254,616 (1) 2019-20 209,000 2020-21 198,306 2021-22 186,128 2022-23 191,098 2023-24 187,156 2024-25 183,731 Notes Source: Orange County Sanitation District's Environmental Compliance Division. (1)Beginning in Fiscal Year 2018-19, biosolids produced were reduced due to the commissioning of dewatering centrifuges at both reclamation plants. 100,000 150,000 200,000 250,000 300,000 350,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Wet Tonnage by Fiscal Year 77 ., ., ~ ..::::::::: ..::::::::::;;j / - --,.::::::::::;jj ._ ._ ._ ._,.:::::::::;jj / ,£... ,..::::::::::;; ,..::::::::::;; ,..::::::::::;; ,.:::::::::;jj / ._ ._ ._ ._ ._ ----- / --- - -----? ORANGE COUNTY SANITATION DISTRICT Capital Asset Statistics Last Ten Fiscal Years Numbe Primary Secondary Fiscal of Pump Treatment Treatment ea Stations Capacity (1) Capacity (1) 2015-16 570 17 376 332 2016-17 396 (2)17 376 332 2017-18 396 17 376 332 2018-19 389 17 376 332 2019-20 388 17 376 332 2020-21 388 17 376 332 2021-22 388 17 376 332 2022-23 388 17 376 332 2023-24 388 17 376 332 2024-25 388 17 376 332 Notes (1) - Capacity is presented as million gallons treated per day. (2) - In FY 2016-17, local sewers were transferred to East Orange County Water District. Source: Orange County Sanitation District Miles o Trunk & Subtrunk Sewers 78 ORANGE COUNTY SANITATION DISTRICT Demographic Statistics Covering The Entire County of Orange (1) Last Ten Fiscal Years Total (5) (2)Personal Per Capita Public (6) Fiscal Population Income Personal School Unemployment ear Estimates (In Thousands) Income Enrollment Rate 2015-16 3,183,000 200,783,000$ (3)63,080$ 85,000$ 493,030 4.4% 2016-17 3,194,000 205,052,000 (3)64,199 88,000 490,430 3.8% 2017-18 3,221,000 212,807,000 (3)66,098 92,700 485,835 3.3% 2018-19 3,222,000 221,692,000 (3)68,840 97,900 478,823 3.0% 2019-20 3,194,000 239,165,000 (3)73,983 103,000 473,612 13.6% 2020-21 3,153,764 257,606,000 (3)81,117 106,700 456,572 6.5% 2021-22 3,162,245 264,973,000 (3)84,479 119,100 448,729 2.9% 2022-23 3,137,164 278,761,000 (3)84,804 127,800 441,249 3.7% 2023-24 3,150,835 289,119,000 (3),(7)90,925 129,000 437,276 4.0% 2024-25 3,175,427 301,049,000 (3),(8)94,806 136,600 429,869 4.5% Notes and Data Sources (2) - Data Source: Demographic Research Unit, California Department of Finance. (3) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University. (4) - Data Source: U.S. Department of Housing and Urban Development. (5) - Data Source: California Department of Education, Educational Demographics Unit. (6) - Data Source: State of California, Employment Development Department as of June 30 of each fiscal year. (7) - Estimate (8) - Forecast Median (4) (1) -The Orange County Sanitation District services 479 square miles or 60% of the total 799.8 square miles that make up the boundaries of Orange County. Income Family 79 ORANGE COUNTY SANITATION DISTRICT Estimated Population Served by the Orange County Sanitation District June 30, 2025 Anaheim 341,773 Brea 47,900 Buena Park 82,667 Costa Mesa 110,321 Cypress 49,499 Fountain Valley 56,560 Fullerton 141,469 Garden Grove 171,492 Huntington Beach 193,134 Irvine 318,629 La Habra 61,202 La Palma 15,110 Los Alamitos 12,006 Newport Beach 82,654 Orange 139,724 Placentia 53,982 Santa Ana 315,325 Seal Beach 24,400 Stanton 40,552 Tustin 79,326 Villa Park 5,738 Westminster 90,295 Yorba Linda 66,267 Subtotal Cities (1)2,500,025 Estimated Population Served in Unincorporated Areas (2)68,952 2,568,977 Data Sources (1) Demographic Research Unit, State of California Department of Finance. (2) Center for Demographic Research, California State University, Fullerton. Population as of January 1, 2025 80 ORANGE COUNTY SANITATION DISTRICT Principal Orange County Employers (1) For the Current Fiscal Year and Ten Years Ago Fiscal Year Ended 6/30/25 Fiscal Year Ended 6/30/15 Percentage of Percentage of Number of Total County Number of Total County Employers Employees (2) Rank Employment (3) Employees (4) Rank Employment (5) Disneyland Resort 36,000 1 2.30%27,000 1 1.76% University of California, Irvine 34,085 2 2.18%22,385 2 1.46% Providence South Division 25,155 3 1.61%12,227 4 0.80% County of Orange 18,000 4 1.15%18,135 3 1.18% Kaiser Permanente 10,293 5 0.66%7,000 5 0.46% Hoag Memorial Hospital 8,081 6 0.52% Allied Universal 7,214 7 0.46% Albertsons Southern California 7,152 8 0.46% MemorialCare 6,326 9 0.40%5,650 8 0.37% CHOC Hospital 5,555 10 0.36% The Boeing Company 6,890 6 0.45% Walmart 6,000 7 0.39% Bank of America Corp.5,500 9 0.36% Target Corp.5,400 10 0.35% Total 157,861 10.10%116,187 7.58% Notes & Data Sources (1)- Data is for the entire county of Orange. (2)- Data Source: Orange County Business Journal Book of Lists published November 2024. (3)- Data Source: State of California, Employment Development Department. - Percentage is calculated by dividing employees by total employment of 1,564,300 as of June 2025. (4)- Data Sources: Orange County Business Journal Book of Lists published November 2014; County of Orange. (5)- Data Source: State of California, Employment Development Department. - Percentage is calculated by dividing employees by total employment of 1,530,800 as of June 2015. 81 ORANGE COUNTY SANITATION DISTRICT Operating Indicators June 30, 2025 Consolidated Revenue Area Orange County (unincorporated areas) Cities: naheim Huntington Beach Santa Ana Brea Irvine Seal Beach Buena Park La Habra Stanton Costa Mesa La Palma Tustin Cypress Los Alamitos Villa Park Fountain Valle Newport Beach Westminster Fullerton Orange Yorba Linda Garden Grove Placentia Special Districts: Costa Mesa Sanitary District Midway City Sanitary District Yorba Linda Water District Revenue Area No. 14 Orange County (unincorporated areas) Cities: Irvine Orange Tustin Special District: Irvine Ranch Water District Governing Body:25-member Board of Directors Authorized Full-Time Equivalent Employees:664 Operational Date:July 1, 1954 Authority:California Health & Safety Code Section 4700 et. seq. Services:Wastewater collection, treatment, and disposal Service Area:479 square miles Population Served:2.6 million Total Miles of Sewers (including force mains):388 miles Reclamation Plants:2 Outlying Pump Stations:15 Wastewater System Treatment Capacities (Million Gallons per Day) Actual Flows Existing Secondary FY23-24 Treatment Capacit Plant 1 117 182 Plant 2 67 150 Total 184 332 Source: Orange County Sanitation District's Financial Management Division. District Organization:The Orange CountySanitation District is one consolidated district made up of two revenue areas which service unincorporated county areas and twenty-three cities and related special districts, as follows: Existing Primary 376 168 208 Treatment Capacit 82 ORANGE COUNTY SANITATION DISTRICT OTHER DATA & TRENDS Information within this section consists of other data and trends including additional annual disclosures as required by the Orange County Sanitation District's debt covenants beyond what is allowed to be reported in the Statistical Section. 83 ORANGE COUNTY SANITATION DISTRICT Cash and Investment Portfolio As of June 30, 2025 Net Unrealized Cost Market Value Gain/(Loss) Shares Par Base Base % of Total Base INVESTMENT PORTFOLIO: CASH & CASH EQUIVALENTS (U.S. DOLLAR): COMMERCIAL PAPER 27,550,000 $ 27,414,362 $ 27,463,280 $ 3.29% 48,918 $ ENERGY 2,432,000 2,433,500 2,433,921 0.29%421 FINANCE 503,566 503,566 503,565 0.06%(1) FIRST AMERICAN SHORT TERM FDS 5,720,000 5,686,176 5,712,328 0.69% 26,152 U.S. AGENCY 19,025,000 18,956,583 19,001,779 2.28% 45,196 U.S. GOVERNMENT 7,850,000 7,794,892 7,803,184 0.94% 8,292 SUBTOTAL - CASH & CASH EQUIVALENTS 63,080,566 62,789,079 62,918,057 7.55% 128,978 FIXED INCOME SECURITIES (U.S. DOLLAR): COMMERCIAL PAPER 2,800,000 2,755,312 2,778,440 0.33% 23,128 CONSUMER DISCRETIONARY 2,000,000 1,945,900 1,962,760 0.24% 16,860 CONSUMER STAPLES 2,000,000 1,995,040 1,997,920 0.24% 2,880 CONVERTIBLE BONDS 124,474,000 123,334,416 124,467,395 14.93% 1,132,979 FINANCE 9,000,000 9,018,928 9,020,390 1.08% 1,462 HEALTH CARE 2,000,000 2,011,880 2,004,500 0.24% (7,380) INFORMATION TECHNOLOGY 2,100,000 2,077,635 2,090,886 0.25% 13,251 MTG RELATED SECURITY 2,000,000 2,000,000 2,032,240 0.24% 32,240 PRIVATE PLACEMENTS 151,549,647 151,841,462 152,885,948 18.34% 1,044,486 SUPRANATIONAL 29,406,000 29,222,417 29,187,382 3.50% (35,035) TELECOMMUNICATION SERVICES 30,446,000 30,200,747 30,523,343 3.66% 322,596 U.S. AGENCY 5,779,000 5,561,313 5,694,235 0.68% 132,922 U.S. GOVERNMENT 140,248,000 126,754,275 129,719,670 15.56% 2,965,395 U.S. GOVERNMENT TIPS 265,926,513 255,725,146 258,324,573 30.98% 2,599,427 UTILITY 18,156,000 18,083,669 18,212,339 2.18% 128,670 SUBTOTAL - FIXED INCOME SECURITIES 787,885,160 762,528,140 770,902,021 92.45% 8,373,881 TOTAL INVESTMENT PORTFOLIO 850,965,726$ 825,317,219 833,820,078 100.00% 8,502,859$ DEMAND DEPOSITS AND CASH ON HAND 4,731,375 4,731,375 MONIES HELD WITH FISCAL AGENTS 290,279 290,279 MONIES WITH THE LOCAL AGENCY INVESTMENT FUND 62,260,512 62,335,119 MONIES WITH THE SECTION 115 TRUST 16,665,517 17,293,359 TOTAL CASH AND INVESTMENTS 909,264,902$ 918,470,210$ 84 ORANGE COUNTY SANITATION DISTRICT Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years Tax Rate OC San 1958 OC San's General Average Fiscal Basic Obligation Total Share o Year Levy Bonds Tax Rate Basic Levy 2015-16 1.00% 0.00% 1.00% 1.62% 2016-17 1.00% 0.00% 1.00% 1.61% 2017-18 1.00% 0.00% 1.00% 1.59% 2018-19 1.00% 0.00% 1.00% 1.59% 2019-20 1.00% 0.00% 1.00% 1.58% 2020-21 1.00% 0.00% 1.00% 1.59% 2021-22 1.00% 0.00% 1.00% 1.61% 2022-23 1.00% 0.00% 1.00% 1.59% 2023-24 1.00% 0.00% 1.00% 1.59% 2024-25 1.00% 0.00% 1.00% 1.59% Notes Source: Orange County Auditor-Controller's Office. In1978,Californiavoters passedProposition 13which setthe propertytax rateat a1.00% fixed amount of assessed value. This 1.00% is shared byall taxing agencies within which the subject propertyresides. In addition to the 1.00% fixed amount, propertyowners were charged taxes as a percentage of assessed property values for the payment of OC San general obligation bonds (which were paid in full in fiscal year 1998-99). 85 ORANGE COUNTY SANITATION DISTRICT Assessed and Estimated Actual Value of Taxable Property (Dollars In Thousands) Last Ten Fiscal Years Percent Change in Fiscal Assessed ear Secured Unsecured Total alue 2015-16 365,267,850 $ 6,936,768 $ 372,204,618 $ 6.20% 2016-17 385,137,024 6,642,312 391,779,336 5.26% 2017-18 409,310,248 6,990,609 416,300,857 6.26% 2018-19 435,911,818 7,213,037 443,124,855 6.44% 2019-20 461,217,033 7,489,937 468,706,970 5.77% 2020-21 486,958,908 7,289,732 494,248,640 5.45% 2021-22 506,709,716 9,445,337 516,155,053 4.43% 2022-23 539,539,856 8,340,728 547,880,584 6.15% 2023-24 574,442,193 9,531,540 583,973,733 6.59% 2024-25 602,926,128 10,853,950 613,780,078 5.10% Source: Orange County Auditor-Controller's Office. In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an inflation factor which is limited to a maximum increase of 2%. With a few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Consequently, the assessed and estimated values are the same. $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Secured Unsecured 86 □ □ ORANGE COUNTY SANITATION DISTRICT Property Tax and User Fee Levies and Collections (Dollars in Thousands) Last Ten Fiscal Years (1) Total Tax Current Tax Percent Total Tax % of Total % of Pass- Fiscal and User and User Fee of Levy Delinquent and User Fee Collection Outstanding Delinquencies Through Year Fee Levy Collection Collected Collection Collection to Levy Delinquencies to Levy Payments 2015-16 371,502$ 370,170$ 99.64 637$ 370,807$ 99.81 1,332$ 0.36 9,199$ (2) 2016-17 381,226 380,078 99.70 608 380,686 99.86 1,148 0.30 9,751 2017-18 386,538 385,673 99.78 741 386,414 99.97 865 0.22 11,353 2018-19 394,641 393,809 99.79 786 394,595 99.99 832 0.21 12,524 2019-20 401,604 400,865 99.82 931 401,796 100.05 739 0.18 13,469 2020-21 405,878 405,053 99.80 1,035 406,088 100.05 825 0.20 15,034 2021-22 418,400 416,869 99.63 1,177 418,046 99.92 1,531 0.37 18,433 2022-23 430,603 428,681 99.55 143 428,824 99.59 1,922 0.45 18,903 2023-24 445,733 444,560 99.74 242 444,802 99.79 1,173 0.26 20,460 2024-25 464,170 462,740 99.69 184 462,924 99.73 1,430 0.31 21,962 Notes Source: Orange County Auditor-Controller's Office. (1)Upon dissolution of California redevelopment agencies during fiscal year 2011-12, propertytax increment formerly remitted to OC San by its member city redevelopment agencies was instead deposited into the newly formed Redevelopment Property Tax Trust Fund (RPTTF) from which the Auditor-Controller makes disbursements on behalf of the successor agencies. There is no tax levy associated with these collections; thus, they have been excluded from the "% of Total Collection to Levy" calculation. (2)In fiscal year 2015-16, the County did not bill user fees for wholly exempt agencies not subject to property taxes. In fiscal year 2015-16, OC San internallybilled user fees of $4.5 million to whollyexempt agencies. These amounts have been excluded from the levy and collection amounts above, as only tax and user fees included on County property tax billings are shown in this schedule. $300,000 $325,000 $350,000 $375,000 $400,000 $425,000 $450,000 $475,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Total Tax and User Fee Levy Total Tax and User Fee Collection 87 .::;iii!:, ..._ ~ ..::::::iilll----..._ ~ -.:::;z:::::, -..... ----..::::z:::;;; .:::z:;;; ,,,t::.if!:;ijji --,-------..._ ~ .... ,----,--- ----..._ .... ,----,--- ----..._ ~ --~ - ----........, □ □ ORANGE COUNTY SANITATION DISTRICT Property Value and Construction Covering The Entire County of Orange (1) (Dollars In Thousands) Last Ten Fiscal Years Non- Residential Construction (3)Total Fiscal Calenda No. o Construction ea alue ea alue Units alue alue (3) 2015-16 504,650,360$ 2016 2,487,000 $ 12,134 3,160,000 $ 5,647,000 $ 2016-17 531,052,158 2017 2,062,000 10,294 3,217,000 5,279,000 2017-18 563,662,044 2018 3,507,000 8,105 2,776,000 6,283,000 2018-19 598,901,016 2019 3,144,000 10,294 2,650,000 5,794,000 2019-20 632,758,256 2020 1,958,000 5,895 1,899,000 3,857,000 2020-21 663,241,179 2021 1,813,000 7,671 2,417,000 4,230,000 2021-22 689,088,931 2022 1,908,000 6,334 2,235,000 4,143,000 2022-23 733,634,516 2023 2,018,000 10,533 2,561,000 4,579,000 2023-24 778,720,416 2024 1,517,000 8,398 2,886,000 4,403,000 (4) 2024-25 820,060,964 2025 1,386,000 9,480 3,142,000 4,528,000 (5) Notes and Data Sources (2) - Data Source: Orange County Auditor-Controller's Office. (3) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University. (4) - Estimate (5) - Forecast (1) -The Orange CountySanitation District services 479 square miles or 60% of the total 799.8 square miles that make up the boundaries of Orange County. Residential Construction (3) Assessed Property Value (2) 88 ORANGE COUNTY SANITATION DISTRICT Insurance in Force As of June 30, 2025 Type Insurer Deductible All-Risk Property Fire and Other Perils Alliant Property $500,000 per $1 billion / occurrence Insurance Program occurrence (multiple insurers) Flood Alliant Property $1 million per $25 million / occurrence Insurance Program occurrence Boiler & Machinery Alliant Property $25,000 to $100 million / occurrence Insurance Program $350,000 (multiple insurers) Earthquake Multiple insurers 5% per structure, $25 million (certain structures only)min. $5 million Crime Insurance Alliant Crime Insurance Program $25,000 $5 million Excess Great American Insurance Co. and $1,000,000 $40 million / occurrence General Liability StarStone Specialty Insurance Co. and annual aggregate (first $10 million layer); Gemini Insurance Co. ($15 million layer, excess $10 million) Arch Insurance Company ($5 million layer, excess $25 million) Great American Insurance Co. ($10 million layer, excess $30 million) Travel & Accident Federal Insurance Co.None Accidental Death & Dismembermen Class 1: Elected Officials $500,000 per occurrence Class 2: Employees 10X annual 10X annual salary, up to $500,000 per occurrence Class 3: Biz Travel Family $25,000 per occurrence Class 4: Biz Travel Family $10,000 per occurrence Excess Workers'Public Risk Innovation, Solutions, $1 million Unlimited statutory coverage Compensation and Management (PRISM)each accident each accident, each employee $4 million employer's liability Pollution Liability Ironshore Specialty Insurance Co. $250,000 $10 million per loss Watercraft Liability Atlantic Specialty Insurance Co. and $2,500 bodily injury $10 million Stratford Insurance Co.$10,000 all other Hull & Machinery Atlantic Specialty Insurance Co. and $10,000 Stratford Insurance Co. Pollution Liability Great American Insurance Co. and n/a $5 million Accredited Surety and Caualty Ins. Co and Starr Indemnity and liability Ins. Co and Ascot Insurance Co. Source: Orange County Sanitation District's Financial Management Division. Limit $600,000 89 (THIS PAGE INTENTIONALLY LEFT BLANK) 90 ORANGE COUNTY SANITATION DISTRICT FINANCIAL MANAGEMENT DIVISION 18480 Bandilier Circle Fountain Valley, California 92708-7018 714.962.2411 | www.ocsan.gov 06/30/25 11/4/2025 SLIDE 1 1 Annual Comprehensive Financial Report (ACFR) For the Year Ended June 30, 2025 Presented by Ruth Zintzun, Finance Manager Bryce Hockensmith, Accoun ng Supervisor Administra on Commi ee November 12, 2025 2 Annual Reports 2 1 2 E ---~~====-= .... ... ..... .. -..... --........... ... -..... ..... -.... Popular Annual Financial Report Q) :=J (I) C Q) Q) () > L Q) :=J 0::: Positic o ~ (J) 0 11/4/2025 SLIDE 2 3 Financial Cycle 3 July Fiscal Year Budget effective November Board consideration of ACFR and PAFR April Auditor interim field work September Auditor final field work Ongoing Monthly operating budget review Ongoing Monthly operating budget review June End of Fiscal Year Quarterly Financial reporting 3 4 FY 24/25 Budget vs Actuals 4 $532M $567M Ad o p t e d Bu d g e t Ac t u a l s $545M $538M Ad o p t e d Bu d g e t Ac t u a l s RevenuesRevenues ExpensesExpenses 4 3 4 - - 11/4/2025 SLIDE 3 5 CIP Expenditures 5 Non-Engineering $14.2 6% Collection System $82.9 million 33% Plant No. 1 $66.9 million 27% Plant No. 2 $56.3 million 23% Joint Facilities $28.1 million 11% $248.4 Million$248.4 Million 5 6 Available Resources 6 $848.9 $918.5 FY 23/24 FY 24/25 Mi l l i o n s $69.6 million increase$69.6 million increase Cash on hand $1,500 Deposits with financial institutions$4,729,875 Managed portfolio$896,155,797 Monies held by trustees $17,583,638 6 5 6 t 11/4/2025 SLIDE 4 7 Debt Profile 7 $0 $100 $200 $300 $400 $500 $600 $700 2 0 2 4 - 2 5 2 0 2 5 - 2 6 2 0 2 6 - 2 7 2 0 2 7 - 2 8 2 0 2 8 - 2 9 2 0 2 9 - 3 0 2 0 3 0 - 3 1 2 0 3 1 - 3 2 2 0 3 2 - 3 3 2 0 3 3 - 3 4 2 0 3 4 - 3 5 2 0 3 5 - 3 6 2 0 3 6 - 3 7 2 0 3 7 - 3 8 2 0 3 8 - 3 9 2 0 3 9 - 4 0 Mi l l i o n s 7 8 Auditors 8 8 7 8 1111 •. _ Eide Ballly 11/4/2025 SLIDE 5 9 Orange County Sanitation District (OC SAN) Communica on with Those Charged with Governance November 12, 2025 1010 Audit Services •Audit of the Annual Comprehensive Financial Report (Annual Report) •Report on internal control over ﬁnancial repor ng and on compliance and other ma ers in accordance with Government Audi ng Standards •Perform Agreed Upon Procedures (AUP) on the following: •Appropria ons Limit Calcula on •Tangible Net Worth •Report on compliance with aspects of contractual agreements 9 10 .-..Eide ~Ballly .._Eide ,._.Bailly 11/4/2025 SLIDE 6 11 •Form and express an opinion about whether the ﬁnancial statements which are the responsibility of management, with your oversight, are presented fairly, in all material respects, in accordance with U.S. GAAP. •Our responsibility is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the ﬁnancial statements are free of material misstatement. Our Responsibility in Accordance with Professional Standards 12 Summary of Audit Results •Unmodiﬁed opinion on OC San’s Annual Report Financial Statements •No material weaknesses or signiﬁcant deﬁciencies were reported Government Audi ng Standards 11 12 .._Eide ,._.Bailly 11/4/2025 SLIDE 7 13 Ethics and Independence •We have complied with all relevant ethical requirements regarding independence. Significant Accounting Policies •Summary of signiﬁcant accoun ng polices – Note 1 •Adopted GASB 101, Compensated Absences, as of July 1, 2024- Note 11 Significant Risks Identified Sensitive Estimate/Disclosure •Pension Liabili es (Note 6) •OPEB Liability (Note 7) Auditor Communications Uncorrected Misstatements/Disclosures •Passed adjustment to reclass pension prepayment as prepaid re rement for ﬁnancial statement presenta on. •Passed adjustment to record interest expense at gross rather than net of the BAB interest subsidy. •Passed disclosure of condensed ﬁnancial informa on for the Orange County Sanita on District Financing Corpora on. Significant Difficulties •We encountered no signiﬁcant diﬃcul es in dealing with management. Disagreements with Management •No disagreements arose during the course of the audit. •Management override •Revenue recogni on •Pension liabili es •OPEB liability 14 eidebailly.com Thank you 14 Roger Alfaro | Partner 909.466.4410 | ralfaro@eidebailly.com 13 14 ..._E,de -...Bailly 11/4/2025 SLIDE 8 This presentation is presented with the understanding that the information contained does not constitute legal, accounting or other professional advice. It is not intended to be responsive to any individual situation or concerns, as the contents of this presentation are intended for general information purposes only. Viewers are urged not to act upon the information contained in this presentation without first consulting competent legal, accounting or other professional advice regarding implications of a particular factual situation. Questions and additional information can be submitted to your Eide Bailly representative, or to the presenter of this session. 15 15 . . . . . . . . ................................................................................ ' • o I • I • I • • • • • o • • • • • • • • • • • • • o • • • • • • • • • • • • • • • • • • • • • • • I • • • • • • • e ••••••••• e • • • • • • • • • e ............................................................................... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . ' ......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' ....................... . .._Eide ~Ballly ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4561 Agenda Date:11/12/2025 Agenda Item No:10. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: ORANGE COUNTY SANITATION DISTRICT POPULAR ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Popular Annual Financial Report for the year ended June 30, 2025. BACKGROUND A Popular Annual Financial Report (PAFR) is a way to communicate selected financial data to a broad audience. Information is extracted from the Annual Comprehensive Financial Report and compiled into a separate report specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance. RELEVANT STANDARDS ·Produce appropriate financial reporting - annual financial report & audit letter and Ops & CIP budgets every two years, with annual update ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A Orange County Sanitation District Printed on 11/4/2025Page 1 of 2 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4561 Agenda Date:11/12/2025 Agenda Item No:10. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Popular Annual Financial Report for the Year Ended June 30, 2025 Orange County Sanitation District Printed on 11/4/2025Page 2 of 2 powered by Legistar™ Popular AnnualFinancial Report Orange County Sanitation District JUNE 30,2025 For The Year Ended oc Our Mission To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. 2 Orange County Sanitation District Orange County Sanitation District Will Be A Leader In: Providing reliable, responsive, and affordable services in line with customer needs and expectations. Protecting public health and the environment utilizing all practical and effective means for wastewater, energy, and solids resource recovery. Continually seeking efficiencies to ensure that the public’s money is wisely spent. Communicating our mission and strategies with those we serve and all other stakeholders. Partnering with others to benefit our customers, this region, and our industry. Creating the best possible workforce in terms of safety, productivity, customer service, and training. Our Vision 3Popular Annual Financial Report | For the year ended June 30, 2025 Introduction Letter Ruth Zintzun Finance Manager We are proud to present Orange County Sanitation District’s (OC San) Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2025. The PAFR provides an easily accessible overview of the financial details contained in our 100-page Annual Comprehensive Financial Report (ACFR). The PAFR draws directly from the ACFR, which provides a more detailed breakdown of our financial data and undergoes a rigorous audit process conducted by Eide Bailly LLP. The ACFR is prepared in conformity with generally accepted accounting principles. You can find the complete 2025 ACFR available for review on OC San’s official website at www.ocsan.gov. This report, along with the ACFR, could not have been accomplished without the dedicated services of the Financial Management Division staff who assisted in its preparation. I would also like to thank OC San’s Board of Directors and the General Manager for their interest and support in conducting the financial operations of OC San in a responsible and progressive manner. I hope this new report will continue to demonstrate OC San’s commitment to transparency and fiduciary responsibility as we continue to provide wastewater collection, treatment, and disposal services for approximately 2.6 million people in central and northwest Orange County. Please do not hesitate to contact OC San if you have any questions, comments or feedback at 714.962.2411 or via e-mail ForInformation@ocsan.gov. 4 Orange County Sanitation District Board of Directors CITIES AGENCIES ACTIVE DIRECTOR Anaheim Carlos A. Leon Brea Christine Marick Buena Park Joyce Ahn Cypress Scott Minikus Fountain Valley Glenn Grandis Fullerton Jamie Valencia Garden Grove Stephanie Klopfenstein Huntington Beach Pat Burns Irvine Melinda Liu La Habra Jose Medrano La Palma Debbie Baker Los Alamitos Jordan Nefulda Newport Beach Erik Weigand Orange Jon Dumitru (Vice Chair) Placentia Chad Wanke Santa Ana Johnathan Ryan Hernandez Seal Beach Lisa Landau Stanton David Shawver Tustin Ryan Gallagher (Chair) Villa Park Jordan Wu Costa Mesa Sanitary District Robert Ooten Midway City Sanitary District Andrew Nguyen Irvine Ranch Water District John Withers Yorba Linda Water District Tom Lindsey Member of the Board of Supervisors Doug Chaffee 5Popular Annual Financial Report | For the year ended June 30, 2025 o o •• eoe o o e o e ••oo eo e o ••oo o o •• oe oe Communications Department Human Resources Department Human Resources Operation & Maintenance Administration Maintenance Support Facilities Environmental ServicesAdministration Risk Management Human ResourcesAdministration Laboratory & Ocean Monitoring Contracts, Purchasing & Materials Management Collection Facilities Plant No. 2 Operations Plant No. 1 Operations Plant No. 1 Maintenance Plant No. 2 Maintenance Administrative Service Department AssistantGeneral Manager General Manager Board of Directors General Counsel Office Environmental Services Department Engineering Department Operations & Maintenance Department Public Affairs Board Services Communications Administration Information Technology Financial Management Civil Facilities Maintenance Fleet Services Administrative Services Resources Protection Environmental Compliance Construction Management Design Project Management Office Planning Engineering Administration Organizational Chart 6 Orange County Sanitation District I j I I o o •• eoe o o •o • ••oo eo e o ••oo o o •• o•o• I I I ..______I-I.._________, ----' I I j I I I I I I I I I I OC San by the Numbers • 479 square-mile service area • 2.6 Million People Served • 100% of Reclaimable Flow Recycled • Over 380 Miles of Regional Sewers • 2 Reclamation Plants • 15 Pump Stations • 185 Million Gallons Per Day Processed 7Popular Annual Financial Report | For the year ended June 30, 2025 Pacific Ocean Orange County Sanitation District -Service Area Boundary Sewer Pipelines en) OC San Headquarters ~ Reclamation Plants Nos. 1 and 2 (Pl & P2) D Pump Stations La Habra Offshore Plpel!ne Smites long D Unincorporated Orange County (White Areas) Brea Strategic Plan Preparing and planning for the future of OC San and the community we serve is the essence of who we are. As part of the planning process, OC San has created a guiding document—the OC San Strategic Plan. Strategic planning is the first step in defining OC San’s ability to have people and assets in the right place at the right time to meet its agreed upon mission and levels of service. Key policies are focused on four broad categories: BusinessPrinciples Environmental Stewardship Workplace EnvironmentWastewater Management 8 Orange County Sanitation District Integrity, Inclusion, Honesty, and Respect We aspire to the highest degree of integrity, inclusion, honesty, and respect in our interaction with each other, our suppliers, our customers, and our community. We strive to demonstrate these values in our actions, commitments, and service. Leadership, Teamwork, and Problem Solving We lead by example, acknowledging the value of our resources and using them wisely to achieve our mission. We strive to reach OC San goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective, and safe manner, and we acknowledge team and individual efforts. Customer Service, Transparency, and Accountability We are committed to acting in a timely, accurate, accessible, and transparent manner through excellent customer service. We are committed to act in the best interest of our internal and external stakeholders. Resiliency, Innovation, and Learning We continuously develop ourselves, enhancing our talents, skills, and abilities. We recognize that only through personal growth and development will we progress as an agency and as individuals. Safety We are committed to providing a safe work environment. We will demonstrate leadership, promote individual accountability, and participate actively in the advancement of our health and safety practices. Co r e V a l u e s 9Popular Annual Financial Report | For the year ended June 30, 2025 o o •• eoe o o e o e ••oo eo e o ••oo o o •• oe oe OC San’s Asset Management Plan drives our 20-year Capital Improvement Program (CIP) and determines the proper timing of our projects to maximize the life of our assets. The Asset Management Group works continuously with our Operations and Maintenance Department to properly define the timing of large CIP projects and the execution of many small projects essential to the day-to- day operations of the collections system and plants to maintain reliable and resilient facilities. A few project highlights from the fiscal year ended June 30, 2025 include: Co n s t r u c t i o n Pr o g r a m Project No. 3-67 Seal Beach Pump Station Replacement Replacing the Seal Beach Pump Station will modernize aging infrastructure, improve efficiency, and support future system upgrades. The new Seal Beach Pump Station will include a 50-foot-deep wet well, new odor control facilities, and a standby generator. The existing pump station will then be demolished. A pump station is a facility that helps move wastewater to our reclamation plants. While most of our sewers rely on gravity, a pump station “lifts” water and pushes it forward when the land is flat or uphill, moving it through the collection system. The operations and maintenance of a pump station is more costly than gravity pipes—gravity moves wastewater for free—but are critical to ensuring uninterrupted sewer service. Construction 2024-2028 Construction Contract $97.1 million 10 Orange County Sanitation District (9 Construction 2021-2030 Construction Contract $229.7 million Project No. P1-105 Headworks Rehabilitation at Plant No. 1 OC San is currently modernizing the headworks at Plant No. 1. The headworks is where wastewater first enters the treatment process. It is the first line of defense, screening out large debris and grit to protect equipment as wastewater moves through the treatment process. The existing headworks at Plant No. 1 have been in service for over 30 years without a major rehabilitation effort—until now. The project will rehabilitate four existing structures and construct seven new ones, while keeping plant operations, utilities, and odor control fully functional throughout construction. Improvements will be made to the metering and diversion structure, bar screen building, bin loading building, main sewage pump station, grit basins, primary influent channels, odor control scrubbers, and electrical power distribution and control systems. Once finished, the upgraded headworks will ensure reliable service and improved protection for OC San’s treatment systems well into the future. 11Popular Annual Financial Report | For the year ended June 30, 2025 Project No. P2-98A A-Side Primary Clarifiers at Plant No. 2 Construction of four new ones is currently underway at Plant No. 2. The four oldest primary clarifiers originally built in the 1960s have surpassed their useful life and are being replaced to maintain reclamation capacity. This project includes new primary clarifiers, an upgraded odor control system, more resilient power distribution systems, updated utilities, and demolition of existing structures. Once finished, the upgraded primary clarifiers will ensure reliable operations for many years. Construction 2021-2027 Construction Contract $115.1 million 12 Orange County Sanitation District Project No. J-117B Outfall Low Flow Pump Station Improvements of the ocean outfall system are nearing completion. A new pump station with appropriately sized smaller pumps to handle reduced non-reclaimable flows will provide a properly sized outfall pumping system. With the final expansion of the Groundwater Replenishment System and the ability to recycle all reclaimable flow from both plants to produce enough water for 1 million people, the amount of flow pumped through the ocean outfall is reduced. This project includes a new low flow pump station, new plant water pump station, improved fiber optic network for a more robust industrial control system, and new server rooms. Construction 2019-2027 Construction Contract $96.1 million 13Popular Annual Financial Report | For the year ended June 30, 2025 (9 5% $11.8 millionNon-Engineering 1% $2.4 millionStudy 32% $79.5 millionCollection System 27% $66.9 millionPlant No. 1 23% $56.3 millionPlant No. 2 12% $28.1 millionJoint Facilities CIP Expenditures Fiscal Year 2024/25 Total $245 Million 14 Orange County Sanitation District 19% $660.8 millionCollection System 20% $715.1 millionPlant No. 1 26% $930.1 millionPlant No. 2 20% $699.0 millionJoint Facilities 14% $498.0 millionFuture Rehabilitation and Replacement 10-Year Net CIP Outlay Fiscal Years 2025/26 through 2034/35 Total $3.6 Billion 1% $52.1 millionNon-Engineering 15Popular Annual Financial Report | For the year ended June 30, 2025 The CIP is validated as part of the budget process each year. The CIP projected net outlay, or spending forecast, is refined as project budgets are reevaluated, looking at active and future CIP projects and ensuring the project scope, schedule, and cost estimates are up to date. The Annual Net CIP Outlay chart shows the historical expenditures over the past five years and the projected CIP spending for the next ten years. The rise in spending is contributed to the increase of projects that will be transitioning in construction. Annual Net CIP Outlay ■ Actuals■ Projected FISCAL YEARS $50 M $0 $100 M $150 M $200 M $250 M $300 M $350 M $400 M $450 M 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 $161 $195 $226 $262 $245 $254 $261 $332 $364 $412 $409 $369 $436 $381 $336 Program Cash Flow 16 Orange County Sanitation District Project Development Preliminary Design Design Bid and Award Construction Commissioning Closed Close Out The project life cycle consists of various phases that make up the path a project takes from start to finish. The active studies and projects during the FY 2024-25 reporting period are from various phases of the project. The project budget includes costs for construction services, design costs, and administrative costs throughout the life cycle of the project. 102 Active CIP Projects 40 Projects in Construction $555MLargest Project Budget 17Popular Annual Financial Report | For the year ended June 30, 2025 Financial Reporting 18 Orange County Sanitation District Report can be found at www.ocsan.gov. OC San operates as a utility enterprise and the financial information is presented accordingly. All financial information and data are based on OC San’s Annual Comprehensive Financial Report for the year ended June 30, 2025. 19Popular Annual Financial Report | For the year ended June 30, 2025 User Fees $354,411,000 Total $567,020,000 Taxes Levied $138,312,000 Interest Income $53,006,000 Other $21,291,000 So u r c e s of R e v e n u e 20 Orange County Sanitation District Expenses Collection System $42,943,000 Treatment and Disposal $194,983,000 Depreciation and Amortization $130,246,000 Interest Expense $15,663,000 Other $935,000 Total $384,770,000 21Popular Annual Financial Report | For the year ended June 30, 2025 AAA OC San strives to maintain financial stability while keeping our sewer rates affordable. OC San consistently has its AAA rating affirmed on all obligations by Fitch Ratings, S&P Global Ratings, and Moody’s Ratings. These ratings are based on our management practices and financial strength. The AAA rating is the highest possible credit rating an agency can receive, which means that we have access to low interest rates on financing our infrastructure improvements, resulting in cost savings for our customers. OC San remains the only California utility with a AAA rating from all three major rating agencies. Wastewater Revenue Obligations Wastewater Refunding Revenue Obligations Total Certificates of Participation/Revenue Obligations 2010A 2010C $80,000,000 $22,830,000 2016A 2017A 2021A 2022A 2024A $115,850,000 $65,815,000 $76,705,000 $81,620,000 $129,210,000 Long Term Debt $572,030,000 22 Orange County Sanitation District FitchRatings S&PGlobal Ratings MOODY'S RATINGS Net Position Assets a resource with economic value that OC San owns or controls with the expectation that it will provide a future benefit. Liabilities debts or obligations that arise during business operations. Deferred Outflow/Inflow of Resources consumption or acquisition of assets that are applicable to a future reporting period. $4,114,662,850 $791,849,743 $50,433,157 Net Position $3,373,246,264 23Popular Annual Financial Report | For the year ended June 30, 2025 Orange County Sanitation District Financial Management Division 18480 Bandilier Circle Fountain Valley, CA 92708-7011 714.962.2411 ForInformation@ocsan.gov www.ocsan.gov Stay Informed. Follow us @OCSanDistrict N ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2025-4353 Agenda Date:11/12/2025 Agenda Item No:11. FROM:Robert Thompson, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: JOINT POWERS AGREEMENT, SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT AUTHORITY (SCCWRP) GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OC SAN 25-XX titled, “A Resolution of the Board of Directors of the Orange County Sanitation District approving the Eleventh Amended Joint Powers Agreement confirming the creation of an agency known as Southern California Coastal Water Research Project Authority (SCCWRP), providing for continuation of SCCWRP for five years from July 1, 2026 through June 30, 2031”; and B. Approve annual funding in the amount of $600,000 for FY 2026/27; $618,000 for FY 2027/28; $636,000 for FY 2028/29; $656,000 for FY 2029/30; and $675,000 for FY 2030/31. BACKGROUND The Southern California Coastal Water Research Project Authority is a research institute established in 1969 as a Joint Powers Agency (JPA). The JPA agreement results from the collaboration of the signatory agencies - Orange County Sanitation District (OC San), the City of Los Angeles, the City of San Diego, and the Los Angeles County Sanitation Districts - pooling resources to enhance scientific understanding of the connections among human activities, natural events, and the health of the Southern California coastal environment. This Agreement ensures the continuation of SCCWRP, a public entity separate from and independent of the Signatories. The item is being presented now due to the required approvals and signature collections from each agency. RELEVANT STANDARDS ·Listen to and seriously consider community input on environmental concerns ·Comply with environmental permit requirements ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities ·Ensure the public’s money is wisely spent Orange County Sanitation District Printed on 11/4/2025Page 1 of 3 OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2025-4353 Agenda Date:11/12/2025 Agenda Item No:11. PROBLEM N/A PROPOSED SOLUTION N/A TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION OC San would no longer be a member of SCCWRP Commission,and therefore unable to provide oversight on SCWRP’s objectives,priorities,policies,guidelines,and research priorities.This can have long-term negative operational and financial ramifications to OC San. PRIOR COMMITTEE/BOARD ACTIONS July 2020 -Adopted Resolution No.OCSD 20-04 entitled,“A Resolution of the Board of Directors of the Orange County Sanitation District approving the Tenth Amended Joint Powers Agreement confirming the creation of the agency known as Southern California Coastal Water Research Project Authority (SCCWRP),providing for continuation of SCCWRP for five years from July 1,2021 through June 30,2026”;and approved annual funding in the amount of $515,000 for FY 2021/22;$530,450 for FY 2022/23; $546,363 for FY 2023/24; $562,754 for FY 2024/25; and $579,637 for FY 2025/26. ADDITIONAL INFORMATION OC San is a founding member of SCCWRP and has maintained continuous membership since its inception. Membership in SCCWRP offers three primary advantages to OC San: 1.SCCWRP serves as a regional research provider focused on issues important to its member agencies and the wider environmental community, 2.SCCWRP coordinates regional studies and inter-agency collaborations for its members,such as the quinquennial Bight projects, and 3.SCCWRP offers a forum where regulators and the regulated community can engage in transparent and constructive dialogue aimed at addressing areas of concern or compliance issues. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been budgeted. Orange County Sanitation District Printed on 11/4/2025Page 2 of 3 powered by Legistar™ File #:2025-4353 Agenda Date:11/12/2025 Agenda Item No:11. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Resolution No. OC SAN 25-XX ·SCCWRP Eleventh Amended Joint Powers Agreement Orange County Sanitation District Printed on 11/4/2025Page 3 of 3 powered by Legistar™ OC SAN 25-XX-1 RESOLUTION NO. OC SAN 25-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE ELEVENTH AMENDED JOINT POWERS AGREEMENT CONFIRMING THE CREATION OF AN AGENCY KNOWN AS SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT AUTHORITY (SCCWRP), PROVIDING FOR CONTINUATION OF SCCWRP FOR FIVE YEARS FROM JULY 1, 2026 THROUGH JUNE 30, 2031 The Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1: That certain Eleventh Amended Joint Powers Agreement Confirming the Creation of an Agency Known as Southern California Coastal Water Research Project Authority (SCCWRP), dated July 1, 2026, by and between Orange County Sanitation District and the City of Los Angeles, County Sanitation District No. 2 of Los Angeles County, and the City of San Diego, providing for continuation of SCCWRP for a five-year period from July 1, 2026, through June 30, 2031, is hereby approved and accepted. Section 2: That payment of Orange County Sanitation District's proportional share of the contribution by the signatory agencies, in a total amount not to exceed $3,185,000, is hereby approved, as follows: FY 2026-2027 $ 600,000 FY 2027-2028 $ 618,000 FY 2028-2029 $ 636,000 FY 2029-2030 $ 656,000 FY 2030-2031 $ 675,000 Section 3: That the Chairman and Clerk of the Board of the Orange County Sanitation District are hereby authorized and directed to execute said Agreement in a form approved by the General Counsel. OC SAN 25-XX-2 PASSED AND ADOPTED at a regular meeting of the Orange County Sanitation District Board of Directors held November 19, 2025. _______________________________ Ryan P. Gallagher Board Chairman ATTEST: __________________________ Kelly A. Lore, MMC Clerk of the Board OC SAN 25-XX-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 25-XX was passed and adopted at a regular meeting of said Board on the 19th day of November 2025, 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 19th day of November 2025. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District 1 ELEVENTH AMENDED JOINT POWERS AGREEMENT CONFIRMING THE CREATION OF AN AGENCY KNOWN AS SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT AUTHORITY This Amended Joint Powers Agreement which confirms the creation of an agency known as SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT AUTHORITY , commonly known as SCCWRP, is made and entered into effective the first day of July, 2026, by and between the City of Los Angeles, a municipal corporation ("Los Angeles"), the Orange County Sanitation District, a special district ("Orange County District"), the City of San Diego, a municipal corporation ("San Diego") and County Sanitation District No. 2 of Los Angeles County, a special district ("Los Angeles County District"), hereinafter "Signatories" (collectively) or "Signatory" (individually). WHEREAS, the Signatories entered into a Tenth Amended Joint Powers Agreement confirming the creation of an agency known as Southern California Coastal Water Research Project Authority, effective July 1, 2021; WHEREAS, it is the desire of the Signatories to provide for the continuation of SCCWRP pursuant to this Eleventh Amended Joint Powers Agreement ("Agreement"): NOW, THEREFORE, the Signatories hereto do agree as follows: 1.PURPOSE This Agreement provides for the continuation of a public entity separate and apart from the Signatories to this Agreement for the purpose of enhancing the scientific foundation for management of Southern California’s ocean and associated coastal watershed resources. 2.CREATION OF SCCWRP Pursuant to Article 1, Chapter 5, Division 7, Title 1 Government Code (Sections 6500 et seq.), the parties hereby confirm the existence of an agency as a public entity, separate and apart from the Signatories to this Agreement to be known as SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT AUTHORITY (hereinafter "SCCWRP"). Such agency shall, through the Commission referred to below, administer and implement this Agreement. 3.ORGANIZATION SCCWRP shall be governed by a fourteen-member Commission composed of representatives of public bodies with accountability for water quality management and aquatic protection in the Southern California Bight as follows: --- 2 (a)Associate Director, Water Division, U.S. Environmental Protection Agency, Region IX; (b)Deputy Director, Division of Water Quality, California State Water Resources Control Board; (c)Executive Officer, Regional Water Quality Control Board - Los Angeles Region; (d)Executive Officer, Regional Water Quality Control Board - Santa Ana Region; (e)Executive Officer, Regional Water Quality Control Board - San Diego Region; (f)Director and General Manager, LA Sanitation & Environment, City of Los Angeles; (g)Chief Engineer and General Manager, County Sanitation District No. 2 of Los Angeles County; (h)General Manager, Orange County Sanitation District; (i)Deputy Chief Operating Officer, or their designee, of Public Utilities Department, City of San Diego; (j)Ocean Protection Council Executive Director/Deputy Secretary for Ocean and Coastal Policy, California Natural Resources Agency; (k)Director, Ventura County Watershed Protection District; (l)Director of Public Works, Los Angeles County Flood Control District; (m)Deputy Director, Public Works, County of Orange; and (n)Director of Public Works, County of San Diego. The Commission shall meet at least four times each calendar year and at such other appropriate intervals as are necessary to conduct the business of SCCWRP. All such meetings shall be subject to the Ralph M. Brown Act, commencing with Section 54950 of the Government Code of the State of California. Members with voting power equivalent to at least six votes, subject to the provisions of Section 5 below, shall constitute a quorum and a simple majority vote of that quorum shall be required for action to be taken. A staff designee may be appointed as an alternate by the person holding the offices set forth above and shall act as a member of the Commission in place of such officer during his or her absence, inability or refusal to act and shall serve indefinitely at the pleasure of the appointing officer and until a successor is appointed, or until such designee dies, becomes incapacitated or 3 resigns. Such designation shall be in writing and shall be delivered to the Executive Director at the offices of SCCWRP. Upon the concurrence of two-thirds vote of the members of the Commission, public bodies of the Commission may designate a new permanent representative. The Commission shall, at its first meeting and thereafter at its first meeting following July 1 of each succeeding year, elect a Chair and Vice-Chair from among its members. The Vice -Chair shall assume the responsibilities of the Chair in the absence of the Chair and the Chair’s alternate. The Commission members shall serve for a term identical to the term of this Agreement, and such term shall be extended automatically as the Agreement is extended. The Commission members shall not be entitled to compensation for attendance or expenses. Administrative and purchasing policies and procedures shall be established by the Commission and shall comply with the law of the State of California. The debts, liabilities and obligations of SCCWRP shall not constitute the debts, liabilities or obligations of any of the Commission members or members of any Advisory Board of SCCWRP. Such debts, liabilities or obligations shall only be those of SCCWRP. 4.COMMISSION RESPONSIBILITIES The responsibilities of the Commission shall include, but not be limited to, the following: (a)Establishing and appointing members of advisory boards, committees, other like groups and consultants as it deems appropriate to further the purposes of this Agreement; (b)Hiring an Executive Director and establishing his or her responsibilities in addition to those detailed herein. Two-thirds vote of the members of the Commission shall be required for hiring the Executive Director; (c)Work with the Commission Technical Advisory Group todevelop and subsequently approve SCCWRP’s Research Plan; (d)Approving the SCCWRP’s Annual Operating Budget, recognizing that the contributions of the Signatories shall be as provided in Section 10 hereof and taking into account other projected sources of income; (e)Reviewing and approving, on an annual basis, the salaries and benefits for the Executive Director and other staff. Two-thirds vote of the members of the Commission including two-thirds of the signatories shall be required for adoption; 4 (f) Conducting a performance review of the Executive Director on an annual basis; (g) Reviewing the financial status of SCCWRP; (h) Establishing objectives, priorities, policies, guidelines, and other such responsibilities as may be appropriate from time to time; and (i) Taking such further action as it deems appropriate to carry out the purposes of this Agreement. 5. ASSOCIATE COMMISSION MEMBERS Associate Commission members attend and participate fully in Commission meetings, and are entitled to one-quarter vote for all Commission business including development of the Research Priorities. Associate Commission members shall have responsibilities identical to those of the Signatories as set forth in Section 4 above proportional to the voting percentage. Upon execution of the attached Associate Commission Member Agreement, SCCWRP’s Associate Commission members shall be composed of representatives of public bodies with accountability for water quality management and aquatic protection as follows: a) Ventura County Watershed Protection District; b) Los Angeles County Flood Control District; c) County of Orange; and d) County of San Diego. Upon concurrence of two-thirds vote of the members of the Commission, other public agencies having a power common to the Signatories may be invited to become Associate Commission Members of the agency. Each party shall acknowledge its agreement to the terms set forth in an associate Commission member agreement. Thereupon the Chief Executive Officer thereof, or substitute representative pursuant to Section 3, or his or her designee as an alternate, shall serve as Asssociate Commission Members of the Commission. 6. Participating Members Participating Members are public entities that have a power common to signatories or Regulatory Agencies having State or Federal authority over water quality in Southern California’s ocean and/or associated coastal watershed resources. (a) U.S. Environmental Protection Agency, Region IX; (b) Division of Water Quality, California State Water Resources Control Board; 5 (c) Regional Water Quality Control Board - Los Angeles Region; (d) Regional Water Quality Control Board - Santa Ana Region; (e) Regional Water Quality Control Board - San Diego Region; (f) California Ocean Protection Council. Other public agencies having a power common to the Signatories may be added as Participating Members to this Agreement. Additional public agencies wishing to become a Participating Member may be invited to join SCCWRP by a 2/3 vote of the commission. The financial contribution required of such additional agency or agencies shall be determined by a majority of the Commission members representing the Signatories. Invited Participating Members shall acknowledge its agreement to the terms hereof by executing this Agreement upon authorization of its Governing Board. Such additional agency or agencies shall have responsibilities identical to those of the Signatories as set forth in paragraph 4 hereof; and the Chief Executive Officer thereof, together with his or her designee, shall be a member and alternate member of the Commission with those powers conferred upon the Signatories. 7. ADVISORY BOARDS The Commission may from time to time appoint one or more advisory boards to assist in carrying out the objectives of SCCWRP. The Commission shall determine the purpose and need for such board(s) and the necessary qualifications for individuals appointed to the board(s). Each member of the advisory board(s) shall be entitled to compensation for his or her consulting services as established by the Commission from time to time. In addition, each member of the advisory board(s) shall be entitled to reimbursement for actual expenses reasonably and necessarily incurred, as well as travel and per diem expenses in an amount or at a rate established from time to time by the Commission. 8. EXECUTIVE DIRECTOR The Commission shall appoint an Executive Director under whose general supervision and control SCCWRP shall be conducted. In accordance with paragraph 4(b) the Executive Director shall be appointed by the Commission and shall serve at the pleasure of the Commission. The Executive Director's compensation shall be set at a level that adequately takes into consideration factors including, but not limited to, the proficiency with which the agency is directed, the degree of satisfactory progress in completing the approved research plan, success in obtaining outside funding and success in managing SCCWRP's budget. 9. EXECUTIVE DIRECTOR'S RESPONSIBILITIES The Executive Director's responsibilities shall include, but not be limited to: 6 (a) Directing research programs and developing recommended research priorities and objectives in coordination with the Commission and Commission Technical Advisory Group; (b) Preparing a triannual Strategic Plan and an Annual Workplan to implement the ongoing, multiyear Research Plan for approval by the Commission at the June Meeting of each year that shall include the priority projects, key questions to be investigated, and funding needs of planned work in each of the Research Areas. (c) Reviewing and editing reports and manuscripts produced by SCCWRP's scientific staff; (d) Managing day-to-day operations; (e) Managing the personnel activities of SCCWRP as is necessary to fulfill the purposes of this Agreement, subject to such periodic review and approval as the Commission deems appropriate; (f) Delegating such authority as is necessary to staff to insure the smooth operation of the organization: (g) Securing outside grants and other funding in support of SCCWRPs research objectives identified in the Annual Workplan in accordance with the provisions of Section 10 regarding grants and contracts; (h) Entering into agreements on behalf of SCCWRP in accordance with the policies and procedures governing purchases of supplies, equipment and services adopted from time to time by the Commission; (i) Providing reports to the Commission on the status of research in progress, Annual Operating Budgets (actual versus budgeted) and cash flow analysis; (j) Having charge of handling and having access to any property of SCCWRP upon the filing of a fidelity bond in the amount of Fifty Thousand Dollars ($50,000); and (k) Acting as Secretary to SCCWRP until such time as the Commission appoints another person to this office. 10. FUNDING Each Signatory shall provide annual funding on July 1 of each year for SCCWRP during the term of this agreement according to the following schedule: FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 $600,000 $618,000 $636,000 $656,000 $675,000 7 Each Associate Commission member of the agency will be required to provide annual funding on July 1 of each year according to the following schedule: FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 $150,000 $154,500 $159,000 $164,000 $168,750 The Participating Commission members as a group are anticipated to provide total annual funding through contract and grants each year according to the following schedule: FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 The fiscal year (FY) is defined as being from July 1 to and including June 30 of the following calendar year. As a condition to the addition of any public agency as party to this Agreement pursuant to Section 3 hereof, the public agencies which are then signatories to this Agreement may, by a vote of their Commission representatives, modify the funding set forth above in a manner which takes into account the financial needs of SCCWRP, provided that funding of any existing Signatory or Associate Commission Members shall not exceed that set forth above. In such event, all new and existing Signatories, through their Commission representatives, shall execute a supplement to this Agreement entitled Supplement to Funding Pursuant to Section 10 and shall attach it to this Agreement. It is further agreed that SCCWRP, through its Executive Director, shall use its best efforts in procuring sources of income other than contributions from the Signatories for approved research projects. Such sources include, but are not limited to, income from grants or contracts from federal and state agencies. Grants and contracts may be entered into by the Executive Director, or Deputy Director in his/her absence, to the limit of One Hundred Thousand Dollars ($100,000) per individual agreement Any grant or contract in excess of One Hundred Thousand Dollars ($100,000) shall require the prior express approval of the Commission, or by the Chair of the Commission should an emergency action be required prior to the next Commission meeting. Any Contract approved by emergency action shall be brought to the next Commission Meeting for ratification. Contracts or task order contracts may not be split to avoid Commission approval. The Commission shall yearly, on or before June 30, adopt and issue an estimated Annual Operating Budget consistent with and supporting the Annual Workplan that projects the funds necessary to maintain and operate SCCWRP for the forthcoming fiscal year being from July 1 of the current calendar year to and including June 30 of the following calendar year. The Budget shall, among other things, contain a statement of anticipated outside sources of revenue and shall not exceed the sum of the total contributions by the Signatories or Associate Commission Members, as hereinabove provided, plus the outside revenue. 8 In the event that any Signatory or Associate Commission Members is unable or unwilling to pay to SCCWRP the funding attributable to it for the upcoming fiscal year as set forth above, then such Signatory or Associate Commission Members shall notify in writing each of the other Signatories and SCCWRP of its inability no later than February 1. Such Signatory or Associate Commission Members shall thereupon be deemed to have withdrawn from this Agreement and SCCWRP created hereby, effective as of July 1 of such year. SCCWRP shall continue in effect and all provisions hereof shall be binding except that the maximum net funds which may be requested of the Signatories or Associate Commission Members shall not be increased above the individual agency contributions set forth above, unless otherwise agreed to by all of the remaining Signatories. In the absence of such notification, each Signatory or Associate Commission Members shall be deemed to have consented to such expenditure and the amount thereof shall, on July 1, become an enforceable obligation of each Signatory or Associate Commission Members to the extent permitted by law. Nothing in this Agreement shall preclude a Signatory or Associate Commission Members from advancing all or a portion of its contribution to SCCWRP. None of the Signatories or Associate Commission Members to this Agreement shall be entitled by virtue of withdrawal to receive any payment of money or share of assets of SCCWRP except as may be agreed upon by the remaining Signatories. 11. TERM AND TERMINATION This Amended Joint Powers Agreement shall remain in full force and effect from July 1, 2026 through June 30, 2031 inclusive. In the event that any Signatory chooses to withdraw from SCCWRP, then such Signatory shall notify in writing each of the other Signatories and SCCWRP of its decision, no later than February 1. Such Signatory shall thereupon be deemed to have withdrawn from this Agreement and SCCWRP created hereby effective as of June 30 of such year. SCCWRP shall continue in effect and all provisions hereof shall be binding upon and inure to the benefit of the remaining Signatories. In the event that any non-Signatory agency of the Commission chooses to withdraw from SCCWRP, then such Commission agency shall notify SCCWRP of its decision in writing at least thirty (30) days prior to the date of anticipated withdrawal. Such Commission agency shall be thereupon deemed withdrawn from participation on the date specified in this notice provided such notice is given at least 30 days prior to the anticipated withdrawal and SCCWRP. SCCWRP shall continue in effect and be governed by the remaining Commission members. 9 12. SCOPE AND CONDUCT OF SCCWRP As defined by the purpose in section 1, SCCWRP exists to enhance the scientific foundation for management of Southern California’s ocean and associated coastal watershed resources. The scope of SCCWRP's research work shall be developed and approved annually by the Commission, which shall seek the advice of the Commission Technical Advisory Group and facilitation of the Executive Director and any other outside advisors deemed necessary or appropriate. The mechanism for review shall be a working research plan, revised annually or as otherwise necessary as determined by the Commission, stating the overall goals and objectives and including an outline of the known current and anticipated future year's research, staffing and funding necessary to successfully achieve the research objectives of this Agreement. Fully developed Research Project contracts shall be reviewed by the Commission Technical Advisory Group and approved by the Commission per the delegation in Section 10. The Commission shall, from time to time, but not less than once each year, submit a report to the governing bodies of each of the Signatories of this Agreement that shall include, but not be limited to, a summary of research accomplishments during the past year, discussion of research in progress and a financial statement. 13. AGENCIES OF SCCWRP The Executive Director is hereby appointed the Treasurer of SCCWRP and shall be responsible for the disposition of the funds of SCCWRP. The Executive Director is also appointed Auditor of SCCWRP. The Treasurer and Auditor shall make such reports and cause such audits of the accounts and records of SCCWRP to be made as are required by law. The Commission shall employ such legal counsel as it determines shall best serve the interests of SCCWRP. SCCWRP shall be strictly accountable for all funds and shall report all receipts and disbursements. The manner of exercising the common power provided for herein shall be subject to the restrictions on the manner of exercising such power of the Los Angeles County District. 14. ACCOUNTING SCCWRP shall establish and maintain such funds and accounts as may be required by good accounting practice. The Treasurer of SCCWRP shall have custody of the funds of SCCWRP and disbursement shall be made by the Treasurer in accordance with applicable procedures. Any earnings on the funds of SCCWRP shall be credited to and be a part of the funds of SCCWRP. 10 The fiscal year of SCCWRP shall begin on the first day of July of each year and shall end on the thirtieth day of June of the following. The Auditor shall contract with an independent certified public accountant to make an annual audit of the account and records of SCCWRP. A report thereof shall be filed as a public record with each of the Signatories and also with the County Auditor of the Counties of Los Angeles, Orange and San Diego. Such report shall also be filed with the Secretary of the State of California and shall be filed within twelve (12) months of the end of the fiscal year under such examination. The cost of the audit shall be a debt of SCCWRP. 15. POWERS AND DUTIES OF SCCWRP SCCWRP shall and is hereby authorized in its own name to do all things necessary and desirable (subject to the limitations provided in this Agreement) to carry out the purposes of this Agreement, including, but not limited to, the following: (a) To make and enter into contracts; (b) To employ agents and employees; (c) To acquire, construct, manage, maintain or operate any buildings, works or improvements; (d) To acquire, hold or dispose of property; (e) To incur debts, liabilities and obligations which shall not constitute the debts, liabilities or obligations of any of the Signatories or any of the Commission members; and (f) To sue and be sued in its own name. 16. DISPOSITION OF PROPERTY AND SURPLUS FUND At the termination of this Agreement, any and all property, funds, assets and interests therein of SCCWRP shall become the property of and be distributed to such of the Signatories as are then members of SCCWRP, or their successors, in the same proportion as the then Signatories, or their successors, have contributed to the total cost of the agency. 17. PRIVILEGES AND IMMUNITIES All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workers compensation and other benefits which apply to the activities of officers, agents or employees of any of the public agencies which are signatory to this Agreement when performing their respective functions within the territorial limits of their 11 respective public agencies, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties extra-territorially under the provisions of this Agreement. 18.MISCELLANEOUS The section headings herein are for convenience only and are not to be construed as modifying or governing the language in the section referred to. 19.SUCCESSORS This agreement shall be binding upon and shall inure to the benefit of the successors of the parties. 20.INDEMNIFICATION AND LIABILITY INSURANCE SCCWRP shall carry during the entire term of this Agreement, liability insurance coverage, naming all Signatories and others including Commission members as additional insured parties, in such kind and amounts as the Commission may from time to time determine to be appropriate. Such cost shall be a debt of SCCWRP. SCCWRP shall indemnify and hold harmless each Commission agency, its officers, agents, and employees, including each agency representative from and against all claims, demands or liability, including legal costs, arising out of or encountered in connection with this Agreement and the activities conducted hereunder and shall defend them and each of them against any claim, cause of action, liability, or damage resulting therefrom. 21.DISCLAIMER Approval of research work by the Commission is not intended in any way to bind, commit or unduly influence decisions of the Signatory or non-Signatory members of the Commission. The findings, conclusions and recommendations of SCCWRP shall not be construed necessarily as the position of any Signatory or non-Signatory member of the Commission. 22.COUNTERPART This Agreement may be signed in several counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same agreement. IN WITNESS THEREOF, the parties have executed this Eleventh Amended Agreement on the dates hereafter set forth. 12 CITY OF LOS ANGELES, a municipal corporation By: _______________________________ DATED: __________________________ ATTEST: _________________________ APPROVED AS TO FORM: By: _______________________________ 13 ORANGE COUNTY SANITATION DISTRICT, a special district By: _______________________________ DATED: __________________________ ATTEST: _________________________ APPROVED AS TO FORM: By: _______________________________ [Signatures Continue] Ryan P. Gallagher Board Chairman Kelly A. Lore Clerk of the Board Scott C. Smith General Counsel 14 CITY OF SAN DIEGO, a municipal corporation By: _______________________________ DATED: __________________________ ATTEST: _________________________ APPROVED AS TO FORM: By: _______________________________ 15 COUNTY SANITATION DISTRICT No. 2 OF LOS ANGELES COUNTY, a special district By: _______________________________ DATED: __________________________ ATTEST: _________________________ APPROVED AS TO FORM: By: _______________________________ (End of Signatures) ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LOS Level Of Service RFP Request For Proposal APWA American Public Works Association MGD Million Gallons Per Day RWQCB Regional Water Quality Control Board AQMD Air Quality Management District MOU Memorandum of Understanding SARFPA Santa Ana River Flood Protection Agency ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor BOD Biochemical Oxygen Demand NEPA National Environmental Policy Act SARWQCB Santa Ana Regional Water Quality Control Board CARB California Air Resources Board NGOs Non-Governmental Organizations SAWPA Santa Ana Watershed Project Authority CASA California Association of Sanitation Agencies NPDES National Pollutant Discharge Elimination System SCADA Supervisory Control And Data Acquisition CCTV Closed Circuit Television NWRI National Water Research Institute SCAP Southern California Alliance of Publicly Owned CEQA California Environmental Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality Management District CIP Capital Improvement Program OCCOG Orange County Council of Governments SOCWA South Orange County Wastewater Authority CRWQCB California Regional Water Quality Control Board OCHCA Orange County Health Care Agency SRF Clean Water State Revolving Fund CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources Control Board EMT Executive Management Team OSHA Occupational Safety and Health Administration TDS Total Dissolved Solids EPA US Environmental Protection Agency PCSA Professional Consultant/Construction TMDL Total Maximum Daily Load FOG Fats, Oils, and Grease PDSA Professional Design Services Agreement TSS Total Suspended Solids gpd gallons per day PFAS Per- and Polyfluoroalkyl Substances WDR Waste Discharge Requirements GWRS Groundwater Replenishment System PFOA Perfluorooctanoic Acid WEF Water Environment Federation ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation IERP Integrated Emergency Response Plan POTW Publicly Owned Treatment Works WIFIA Water Infrastructure Finance and Innovation Act JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the LAFCO Local Agency Formation Commission PSA Professional Services Agreement WRDA 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) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and 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.