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Home My WebLink About10-28-2026 Board Meeting Complete Agenda PacketNOTICE OF REGULAR MEETING AGENDA PUBLIC PARTICIPATION NOTICE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS OCTOBER 28, 2026 - 6:00 PM ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. OC San offers several ways in which to interact during this meeting. MEETING PARTICIPATION INSTRUCTIONS www.ocsan.gov IN-PERSON MEETING ATTENDANCE OC San Headquarters: 18480 Bandilier Circle, Fountain Valley, CA 92708 ONLINE MEETING PARTICIPATION Join the meeting now PARTICIPATE BY TELEPHONE Dial: (213) 279-1455 Phone Conference ID: 881 395 579# WATCH THE MEETING ONLINE https://ocsd.legistar.com/Calendar.aspx Details on how to participate can be found on our website at Join the live meeting on Teams: The meeting will be available for online viewing at: 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! SUBMIT A COMMENT Online at: https://ocsd.legistar.com/Calendar.aspx or by emailing: OCSanClerk@ocsan.gov BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 - 6:00 PM Headquarters - Board Room 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 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. SUBMIT A COMMENT: You may submit your comments and questions in writing in advance of, or during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or by sending them to OCSanClerk@ocsan.gov with the subject line "PUBLIC COMMENT ITEM # [insert relevant item number]" or "PUBLIC COMMENT NON-AGENDA ITEM". 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. 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 View Current Board of Directors BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 CALL TO ORDER Board Chairman Jon Dumitru INVOCATION AND PLEDGE OF ALLEGIANCE Director Bonnie Peat, City of Cypress ROLL CALL AND DECLARATION OF QUORUM Clerk of the Board A-1 2026-5145APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS RECOMMENDATION: Receive and file member-agency appointments to the Orange County Sanitation District Board of Directors: Agency Director Alternate Director Irvine Ranch Water District Dan Ferons Steve LaMar Originator:Kelly Lore 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. SPECIAL PRESENTATIONS: 1.2026-5053EMPLOYEE SERVICE AWARDS 20-year Service Award Santiago Escobar, Associate Engineer - Division 821 Steve Grande, Lead Mechanic - Division 820 Kwen Tjen, Plant Operator - Division 840 Originator:Kelly Lore Page 2 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 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 Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2.2026-4713APPROVAL OF MINUTES RECOMMENDATION: Approve minutes of the Special meeting of the Board of Directors held September 18, 2026; and the Regular meeting of the Board of Directors held September 23, 2026. Originator:Kelly Lore Attachments: RECEIVE AND FILE: 3.2026-4689COMMITTEE MEETING MINUTES RECOMMENDATION: Receive and file the following: A. Minutes of the Steering Committee Meeting held August 26, 2026 B. Minutes of the Operations Committee Meeting held September 2, 2026 C. Minutes of the Administration Committee Meeting held September 9, 2026 Originator:Kelly Lore Attachments: 4.2026-4824REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF SEPTEMBER 2026 RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of September 2026. Originator:Wally Ritchie Page 3 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 Agenda Report Report of the Investment Transactions - September 2026 Attachments: OPERATIONS COMMITTEE: 5.2026-5123PLANT NO. 2 ALFA LAVAL INC. MAINTENANCE SERVICE AGREEMENT FOR CENTRIFUGES RECOMMENDATION: A. Approve a sole source purchase order to Alfa Laval Inc., for major service overhauls of six centrifuges at Plant No. 2 over a two-year period, for a total amount not to exceed $268,718; and B. Approve an allowance of $120,000. Originator:Riaz Moinuddin Attachments: 6.2026-5124REPLACEMENT MOBILE TELESCOPIC BOOM CRANE (9-TON) RECOMMENDATION: A. Approve a purchase order to Western Pacific Crane & Equipment for the purchase of one Mobile Telescopic Boom Crane (9-Ton) using the Equalis Cooperative Contract No. COG-2149B for an amount not to exceed $267,007; and B. Approve a contingency of $26,700 (10%). Originator:Riaz Moinuddin Attachments: 7.2026-5125 ..end GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve the execution of an Encroachment Agreement with the City of Newport Beach for the installation of electrical improvements located at 4141 MacArthur Boulevard, Newport Beach, California, in a form approved by General Counsel; and B. The Clerk of the Board is hereby authorized and directed to record said Agreement in the official records of the Orange County Clerk-Recorder’s Office. Page 4 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 Originator:Mike Dorman Attachments: 8.2026-5127PRIMARY SEDIMENTATION BASINS NO. 3-5 REPLACEMENT AT PLANT NO. 1, PROJECT NO. P1-126 RECOMMENDATION: Approve a contingency increase of $849,780 (6%) to the existing Professional Design Services Agreement with Black & Veatch Corporation to provide design services for Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1, Project No. P1-126, for a total contingency not to exceed $2,266,080 (16%). Originator:Mike Dorman Attachments: 9.2026-5128RIGHT-OF-WAY SERVICES RECOMMENDATION: A. Approve a Professional Consultant Services Agreement with Paragon Partners Consultants, Inc. for Right of Way Services, Specification No. CS-2026-725BD, for a total amount not to exceed $300,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $30,000 (10%). Originator:Mike Dorman Attachments: ADMINISTRATION COMMITTEE: 10.2026-5140PUBLIC AFFAIRS UPDATE FOR THE MONTH OF SEPTEMBER 2026 RECOMMENDATION: Receive and file the Public Affairs Update for the month of September 2026. Originator:Jennifer Cabral Attachments: Page 5 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 11.2026-5141LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF SEPTEMBER 2026 RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of September 2026. Originator:Jennifer Cabral Attachments: 12.2026-5142SERVER HARDWARE REFRESH FOR INDUSTRIAL CONTROL SYSTEM AND ENTERPRISE OFFICE NETWORKS RECOMMENDATION: A. Approve an Equipment Contract to Nth Generation Computing, Inc. for the procurement of HPE vSAN Ready Nodes for the Enterprise and SCADA Environment, Specification No. E-2026-743BD for a total amount not to exceed $7,557,229 plus applicable sales tax; and B. Approve a contingency in the amount of $755,723 (10%). Originator:Wally Ritchie Attachments: 13.2026-5143PROPOSED POSITION CHANGES FOR FISCAL YEAR 2026-27 RECOMMENDATION: Approve the addition of one (1) new position, the upgrade of one (1) position, and the downgrade of one (1) position for FY 2026-2027 as follows: Page 6 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 A. Add one (1) Safety Inspector (Salary Grade OCE78); B. Upgrade one (1) Staff Analyst (Salary Grade PRO70) to Senior Staff Analyst (Salary Grade PRO76); and C. Downgrade one (1) Maintenance Manager (Salary Grade EM16) to Maintenance Superintendent (Salary Grade SUP90). Originator:Laura Maravilla Attachments: STEERING COMMITTEE: 14.2026-5149CLASSIFICATION & COMPENSATION STUDIES, SPECIFICATION NO. CS-2026-734BD RECOMMENDATION: A. Approve a Professional Consultant Services Agreement with Gallagher Benefit Services, Inc., to conduct Classification and Compensation Studies, Specification No. CS-2026-734BD, for a total amount not to exceed $285,000; and B. Approve a contingency of $28,500 (10%). Originator:Laura Maravilla Attachments: NON-CONSENT: None. INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency’s expense, per Government Code §53232.3(d). • Report from Board Delegate - ISDOC • Report from Board Delegate - NWRI • Report from Board Delegate - OCCOG • Report from Board Delegate - SARFPA • Report from GWRS Steering Committee Member(s) • Other Page 7 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. CS-1 2026-5147CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(2) RECOMMENDATION: Convene in Closed Session: Number of Potential Cases: 4 Significant exposure to litigation. Attachments: CS-2 2026-5154CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 1 PCL Construction, Inc. v. Orange County Sanitation District Orange County Superior Court Case No.: 30-2025-0142899-CU-BC-WJC. Agenda Report Board CS Memo re Existing Litigation Attachments: RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Page 8 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, October 28, 2026 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT Adjourn the Board meeting until the next meeting of the Board of Directors on November 18, 2026 at 6:00 p.m. AFFIDAVIT OF POSTING: 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 October 21, 2026 Page 9 of 9 BOARD OF DIRECTORS Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-4713 Agenda Date:10/28/2026 Agenda Item No:2. 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 Special meeting of the Board of Directors held September 18,2026;and the Regular meeting of the Board of Directors held September 23, 2026. 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 26-02 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·September 18, 2026 Board of Directors Special meeting minutes ·September 23, 2026 Board of Directors Regular meeting minutes Orange County Sanitation District Printed on 10/19/2026Page 1 of 1 powered by Legistar™ ORANGE COUNTY SANITATION DISTRICT MINUTES BOARD OF DIRECTORS SPECIAL MEETING - STATE OF OC SAN SEPTEMBER 18, 2026 Headquarters - Board Room 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Minutes September 18, 2026 CALL TO ORDER A special meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman Jon Dumitru on Wednesday, September 18, 2026 at 12:01 p.m. in the Orange County Sanitation District Headquarters. PRESENT: ABSENT: Debbie Baker, Ted Bui, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Tom Lindsey, Melinda Liu, Christine Marick, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jamie Valencia, Chad Wanke, Erik Weigand, Ryan Balius (Alternate), Michelle Barto (Alternate), Shana Charles (Alternate), Tyler Diep (Alternate), Dan Ferons (Alternate), Gene Hernandez (Alternate), Kelly McBride (Alternate), Leo Medrano (Alternate), Janet Nguyen (Alternate), Art Perry (Alternate), and Cindy Tran (Alternate) Joyce Ahn, Jose Medrano and Jordan Nefulda PLEDGE OF ALLEGIANCE AND WELCOME Chair Dumitru introduced Board Vice Chairwoman Christine Marick who led the Pledge of Allegiance. PUBLIC COMMENTS: None. SPECIAL PRESENTATIONS: 1. STATE OF OC SAN PRESENTATION 2026-5021 Originator: Kelly Lore Chair Dumitru recognized past and present Board members, special guests and attendees. General Manager Rob Thompson welcomed the group and introduced distinguished guest speaker Deputy Secretary Troy Edgar of the U.S. Department of Homeland Security who provided an overview of security threats and issues facing agencies across the country. Mr. Thompson then provided a presentation highlighting the organization’s accomplishments over the past year and an update on planned projects and upcoming initiatives. ADJOURNMENT At 12:58 p.m. Chair Dumitru adjourned the Special Board meeting until the next Regular Meeting of the Board of Directors to be held on Wednesday, September 23, 2026 at 6:00 p.m. Page 1 of 2 BOARD OF DIRECTORS Minutes September 18, 2026 Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS AND ORANGE COUNTY SANITATION DISTRICTFINANCING CORPORATIONBOARD OF DIRECTORS MINUTES SEPTEMBER 23, 2026 Headquarters - Board Room 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Minutes September 23, 2026 CALL TO ORDER A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman Jon Dumitru on Wednesday, September 23, 2026 at 6:00 p.m. in the Orange County Sanitation District Headquarters. Director Joyce Ahn delivered the invocation and led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM The Clerk of the Board declared a quorum present as follows: PRESENT:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand : 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; Kelly Lore, Clerk of the Board;Mo Abiodun; Jackie Castro; Sam Choi; Ronald Cortez; Daisy Covarrubias; Raul Cuellar; Don Cutler; Thys DeVries; Martin Dix; Justin Fenton; Al Garcia; Shawn Grant; Mark Kawamoto; Tom Meregillano; Rob Michaels; Kelly Newell; Andrew Nguyen; Nick Oswald; Eric Rivas; Loc Trang; Thomas Vu; Kevin Work; and Sammady Yi were present in the Board Room. OTHERS PRESENT: Scott Smith, General Counsel; Christopher Deal, Associate Counsel; Curtis Chmilar, Dragos; Jim Herberg, former General Manager; and John Withers, former Board Member and Chairman were present in the Board Room. Darren Hodge and Michael Miller were present virtually. PUBLIC COMMENTS: None. Ms. Lore announced that correspondence from EEC Environmental was received and was distributed to the Board and made available to the public that day. SPECIAL PRESENTATIONS: 1.EMPLOYEE SERVICE AWARDS 2026-5052 Originator: Kelly Lore Page 1 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 35-year Service Award Ronald C. Cortez, Operations Supervisor - Division 830 20-year Service Award Eric S. Rivas, Senior Mechanic - Division 880 2.RECOGNITION OF FORMER BOARD CHAIRMAN JOHN WITHERS 2026-5071 Originator: Kelly Lore The Board of Directors and Staff will recognize former Board Chairman John Withers for his 17 years of service on Orange County Sanitation District’s Board of Directors. REPORTS: Chair Dumitru thanked attendees of the 13th Annual State of OC San luncheon which hosted about 150 dignitaries and community members. Troy Edgar, Deputy Secretary of the United States Department of Homeland Security, and former OC San Board Chair, served as guest speaker. He also recognized staff for organizing the great event. Chair Dumitru stated that the Directors and Alternate Directors would receive talking points highlighting recent OC San activities tomorrow to support outreach efforts and ensure consistent messaging. Chair Dumitru stated that an updated emergency card for OC San’s team, the Vice Chairwoman and I was distributed to the Board of Directors. Mr. Thompson reported that correspondence from EEC Environmental was received and provided to the Board of Directors. He reported that staff would continue to work through the dispute resolution process established in the contract. Mr. Thompson reported that since the last Board meeting, I have attended several meetings and events, including Southern California Coastal Water Research Project (SCCWRP) Commission Meeting; National Water Research Institute (NWRI) Board of Directors Meeting; rating review meetings regarding OC San’s financial position and credit; a Grand Jury Tour and a New Employee Tour. Mr. Thompson reported that OC San had one additional seat available for the OC Water Summit at the Westin South Coast Plaza, which was offered to Board Members on a Page 2 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 first-come, first-served basis. Mr. Thompson reported that OC San received the Distinguished Budget Presentation Award for the Fiscal Years 2026-27 and 2027-28 budget from the Government Finance Officers Association. Mr. Thompson recognized OC San employee Eric Rakutt, who passed away earlier this month. Eric dedicated nearly 21 years of service to OC San. He began his career with the organization in October 2005 as a Facilities Worker/Builder and most recently served as a Facilities Worker. He also recognized long-term Board Member and former Board Chairman Jim Ferryman, who passed away earlier this month. Jim served on Costa Mesa Sanitary District’s Board of Directors for more than 30 years and on OC San’s Board of Directors for 24 years, including as OC San Board Chairperson from 2006 to 2008. He was instrumental in the success of several OC San efforts, including the development and commissioning of the Groundwater Replenishment System, supporting OC San’s transition to secondary treatment, and helping OC San transfer more than 150 miles of local sewer pipes in unincorporated areas of Orange County to the East Orange County Water District. In recognition of these achievements, Jim received an Honor Walk Brick in 2023. Mr. Thompson extended condolences to their families and requested the meeting be adjourned in their memory. CONSENT CALENDAR: 3.APPROVAL OF MINUTES 2026-4712 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the Regular meeting of the Board of Directors held August 26, 2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:Rose Espinoza (Alternate) 4.ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT 2026-5072 Originator: Mike Dorman Page 3 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Orange County Sanitation District Annual Report for Fiscal Year 2025-2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:Rose Espinoza (Alternate) 5.PAYMENT OF COASTAL DEVELOPMENT PERMIT APPLICATION FEE FOR OCEAN OUTFALLS REHABILITATION, PROJECT NO. J-137 2026-5091 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: A.Find that the recommended action is exempt from the California Environmental Quality Act (CEQA) under the Class 1 and 6 categorical exemptions set forth in CEQA Guidelines Section 15301, Existing Facilities, and CEQA Guidelines Section 15306, Information Collection; B.Approve payment to the California Coastal Commission in an amount not to exceed $195,120, which includes a contingency of $32,520 (20%), for the Coastal Development Permit Application fee for the Ocean Outfalls Rehabilitation, Project No. J-137. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:Rose Espinoza (Alternate) RECEIVE AND FILE: 6.COMMITTEE MEETING MINUTES 2026-4688 Originator: Kelly Lore Page 4 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 WITHOUT OBJECTION ACTION TAKEN TO RECEIVE AND FILE THE FOLLOWING: A. Minutes of the Operations Committee Meeting held July 1, 2026 B. Minutes of the Administration Committee Meeting held July 8, 2026 C. Minutes of the Steering Committee Meeting held July 22, 2026 7.REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF AUGUST 2026 2026-4823 Originator: Wally Ritchie WITHOUT OBJECTION ACTION TAKEN TO RECEIVE AND FILE THE FOLLOWING: Report of the Investment Transactions for the month of August 2026. OPERATIONS COMMITTEE: 8.COOPERATIVE PROCUREMENT WITH STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES FOR FUEL PURCHASE PROGRAM 2026-5080 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Change Order amount of $135,000 to Blanket Purchase Order 109745-OB for the Fleet Fuel Program under the State of California Department of General Services Master Agreement No. 5-19-99-19 with WEX Bank, for a total amount not to exceed $275,000 for the term July 1, 2026, through June 30, 2027; B. Approve a one (1) year renewal option at an amount not to exceed $275,000; and C. Approve an annual contingency of $55,000 (20%). AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None Page 5 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 9.FLEET VEHICLE REPLACEMENT PURCHASES 2026-5081 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: A. Approve the purchase of replacement vehicles and electric utility carts for Orange County Sanitation District’s fleet as initially approved in the adopted Fiscal Year 2026-27 Budget in the not to exceed amount of $1,844,000; and B. Authorize the General Manager and Purchasing Manager to purchase replacement vehicles and carts during the fiscal year in the not to exceed amount listed above, utilizing the method of procurement determined by the Purchasing Manager to be in the best interest of the Orange County Sanitation District. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 10.PLANT NO. 2 TRICKLING FILTER A, B, & C FILAMENT-WOUND BUSHINGS 2026-5082 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Sole Source Purchase Order to Ovivo USA, LLC for four filament-wound bushing conversions for Plant No. 2, for an amount not to exceed $370,940, plus applicable sales tax; and B. Approve a contingency of $37,094 (10%). AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None Page 6 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 11.ENGINEERING PROGRAM CONTRACT PERFORMANCE REPORT 2026-5083 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Engineering Program Contract Performance Report for the period ending June 30, 2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 12.PARTIAL QUITCLAIM DEED, EASEMENT RELINQUISHMENT AGREEMENT, GRANT OF EASEMENT, AND ENCROACHMENT AGREEMENT AT 3150 BEAR STREET, COSTA MESA 2026-5084 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: A. Approve the execution of a Partial Quitclaim Deed and the Easement Relinquishment Agreement for an easement at 3150 Bear Street, Costa Mesa, California, with MTHCALV-I BEAR STREET, LLC, and accept $165,000 as consideration for the relinquished easement rights, together with a Grant of Easement and an Encroachment Agreement, in forms approved by General Counsel; and B. Direct the Clerk of the Board to record documents with the Orange County Clerk-Recorder’s Office. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None Page 7 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 13.LEASE AGREEMENT WITH FOUNDERS RSG LP, PROVIDING ORANGE COUNTY SANITATION DISTRICT PARCEL FOR PARKING AND/OR RELATED ACTIVITIES 2026-5085 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: Approve the execution of a Lease Agreement with Founders RSG LP, a California limited partnership, to allow paving, striping, parking, and related improvements over a 4-foot wide portion of the Orange County Sanitation District's 50-foot wide utility corridor which abuts 21532 South Brookhurst Street in Huntington Beach, for an initial term of five (5) years beginning on the date the Agreement is executed; and an option to extend for up to two (2) additional five-year periods, at an annual rent of $500, and the collection of $442.50 in back rent, for the interim occupancy period, in a form approved by General Counsel. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 14.SIPHON ASSESSMENTS IN ANAHEIM, NEWPORT BEACH, AND ORANGE, PROJECT NO. PS25-01 2026-5086 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: Page 8 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 15.MANHOLE FRAME AND COVER REPLACEMENT SERVICES, SPECIFICATION NO. S-2026-729BD 2026-5087 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a General Services Contract to Ayala Engineering, Inc. to provide Manhole Frame and Cover Replacement Services, Specification No. S-2026-729BD, for a total amount not to exceed $1,260,350 for the period beginning November 1, 2026, through October 31, 2027, with four (4) one-year renewal options; and B. Approve an annual contingency of $126,035 (10%). AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 16.CHEMICAL SUPPLIER AGREEMENT FOR THE PURCHASE OF LIQUID ANIONIC POLYMER, SPECIFICATION NO. SSJ 2945 2026-5088 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Page 9 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 A. Approve a Sole Source Chemical Supplier Agreement with Polydyne, Inc. for the purchase of Liquid Anionic Polymer, Specification No. SSJ 2945, for a five-year term beginning November 1, 2026, through October 31, 2031, for a total unit price of $5.18 per active pound delivered plus applicable sales tax for a total estimated first-year cost of $600,880; and B. Approve an annual unit price contingency increase of up to 5%, estimated at $30,044 for the first year. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None ADMINISTRATION COMMITTEE: 17.PUBLIC AFFAIRS UPDATE FOR THE MONTHS OF JULY AND AUGUST 2026 2026-5094 Originator: Jennifer Cabral MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Public Affairs Update for the months of July and August 2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 18.REIMBURSEMENTS TO BOARD MEMBERS AND STAFF 2026-5095 Originator: Wally Ritchie MOVED, SECONDED, AND DULY CARRIED TO: Page 10 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 Receive and file report of reimbursements to Board Members and Staff per Government Code Section 53065.5 for the period July 1, 2025 through June 30, 2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 19.TERMINATION OF CONFIDENTIALITY AND COMMON INTEREST AGREEMENT 2026-5096 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 20.ENVIRONMENTAL REGULATORY REPORTS 2026-5097 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Page 11 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 Receive and file the following environmental regulatory reports: Annual Biosolids Management Compliance Report CY 2025, Annual Pretreatment Program Report FY 2025 (July 2024-June 2025), Semi-Annual Pretreatment Program Report (July-December 2025), Annual Mandatory Reporting of Greenhouse Gas Emissions Reports CY 2025, Annual Air Quality Emissions Reports CY 2025, and the Annual Marine Monitoring Report FY 2025 (July 2024-June 2025). AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 21.NETWORK TEST ACCESS POINTS FOR INDUSTRIAL CONTROL SYSTEM NETWORK AND OFFICE NETWORK 2026-5098 Originator: Wally Ritchie MOVED, SECONDED, AND DULY CARRIED TO: AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 22.INDUSTRIAL CONTROL SYSTEMS FIREWALL UPGRADE 2026-5099 Originator: Wally Ritchie MOVED, SECONDED, AND DULY CARRIED TO: Page 12 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 A. Approve a Purchase Order Contract to ePlus Technology, Inc. for the purchase of four Industrial Control System firewalls and professional services utilizing the OMNIA Cooperative Purchasing Agreement, Contract No. R250307, for a total amount not to exceed $476,442 (includes sales tax); and B. Approve a contingency of $47,644 (10%). AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 23.LEGISLATIVE AFFAIRS UPDATE FOR THE MONTHS OF JULY AND AUGUST 2026 2026-5100 Originator: Jennifer Cabral MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Legislative Affairs Update for the months of July and August 2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 24.SALE OF ENERGY CREDITS 2026-5102 Originator: Wally Ritchie MOVED, SECONDED, AND DULY CARRIED TO: Page 13 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 Authorize the General Manager, or designee, on an ongoing basis to sell, transfer, or otherwise monetize renewable energy credits derived from Orange County Sanitation District’s generation facilities that are determined to be in excess of Orange County Sanitation District’s operational or regulatory requirements, through solicitation methods determined to be in Orange County Sanitation District’s best interest, provided that such transactions comply with applicable laws and regulations and are sold at market value. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver and Jordan Wu NOES:None ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None 25.WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2026A 2026-5101 Originator: Wally Ritchie MOVED, SECONDED, AND DULY CARRIED TO: AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None Page 14 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None STEERING COMMITTEE: None. Recess the Orange County Sanitation District Board of Directors Meeting. Chair Dumitru recessed the OC San Board of Directors Meeting at 6:48 p.m. ************************************************************************************************ Page 15 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION CALL TO ORDER Chair Dumitru called the Board of Directors, Orange County Financing Corporation meeting to order at 6:48 p.m. ROLL CALL AND DECLARATION OF QUORUM Kelly Lore, Secretary of the Financing Corporation, declared a quorum present as follows: PRESENT:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver and Jordan Wu ABSENT:Pat Burns, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand Director Hernandez stepped out of the meeting at approximately 6:49 p.m.prior to FC-1 and returned prior to Closed Session. APPROVAL OF MINUTES FC-1 APPROVAL OF MINUTES - ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION 2026-5073 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular meeting of the Orange County Sanitation District Financing Corporation held June 24, 2026. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Stephanie Klopfenstein, Lisa Landau, Carlos Leon, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu and Dan Ferons NOES:None ABSENT:Pat Burns, Johnathan Ryan Hernandez, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:Rose Espinoza (Alternate) Director Carlos Leon departed the meeting after the vote on Item No. FC-1. Page 16 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 NON-CONSENT: FC-2 WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2026A 2026-5074 Originator: Wally Ritchie Director of Finance Wally Richie provided an update on the item. MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. FC-32 titled: “A Resolution of the Board of Directors of the Orange County Sanitation District Financing Corporation authorizing the execution and delivery by the Corporation of an Installment Purchase Agreement, a Trust Agreement and a Purchase Agreement in connection with the Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2026A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $60,000,000 and authorizing the execution of necessary documents and related actions”. AYES:Joyce Ahn, Debbie Baker, Ted Bui, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Stephanie Klopfenstein, Lisa Landau, Tom Lindsey, Christine Marick, Jordan Nefulda, Andrew Nguyen, Robert Ooten, Bonnie Peat, David Shawver, Jordan Wu, Rose Espinoza (Alternate) and Dan Ferons NOES:None ABSENT:Pat Burns, Johnathan Ryan Hernandez, Carlos Leon, Melinda Liu, Jamie Valencia, Chad Wanke and Erik Weigand ABSTENTIONS:None Adjourn, Board of Directors, Orange County Sanitation District Financing Corporation. ************************************************************************************************ Page 17 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 Reconvene, Board of Directors, Orange County Sanitation District. NON-CONSENT: None. INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: Directors Andrew Nguyen and Bob Ooten provided reports on their recent attendance at various Regional Board Meetings. Chair Dumitru announced that the GWRS meeting for October would be cancelled. Director Doug Chaffee departed the meeting at approximately 6:54 p.m. prior to Closed Session. CLOSED SESSION: The Board convened in closed session at 6:54 p.m. Confidential minutes of the Closed Sessions have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session meetings. CS-1 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(1) 2026-5109 DID NOT CONVENE IN CLOSED SESSION: Number of Cases: 1 Julia Ha v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01484899-CU-WT-CJC. CS-2 THREAT TO PUBLIC SERVICES OR FACILITIES - GOVERNMENT CODE SECTION 54957(a)(1) 2026-5110 CONVENED IN CLOSED SESSION: Conference with Information Technology Systems & Operations Manager regarding cyber security. Page 18 of 19 BOARD OF DIRECTORS Minutes September 23, 2026 CS-3 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) 2026-5111 CONVENED IN CLOSED SESSION: Number of Potential Cases: 2 Initiation of litigation. RECONVENED IN REGULAR SESSION. The Board reconvened in regular session at 7:22 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Scott Smith stated there was no reportable action. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT At 7:23 p.m., Chair Dumitru adjourned the meeting until the next Regular Meeting of the Board of Directors to be held on Wednesday, October 28, 2026 at 6:00 p.m. in memory of former OC San Board Chairman James M. Ferryman and OC San Employee Eric Rakutt. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 19 of 19 BOARD OF DIRECTORS Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-4689 Agenda Date:10/28/2026 Agenda Item No:3. FROM:Robert Thompson, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: COMMITTEE MEETING MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: A. Minutes of the Steering Committee Meeting held August 26, 2026 B. Minutes of the Operations Committee Meeting held September 2, 2026 C. Minutes of the Administration Committee Meeting held September 9, 2026 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 26-02 ADDITIONAL INFORMATION The minutes of the Committee meetings are approved at their respective Committees and brought forth to the Board of Directors for receive and file only. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Minutes of the Monthly Committee Meetings Orange County Sanitation District Printed on 10/15/2026Page 1 of 1 powered by Legistar™ Orange County Sanitation District Minutes for the STEERING COMMITTEE Wednesday, August 26, 2026 5:00 PM Huntington Beach Room 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman Jon Dumitru on Wednesday, August 26, 2026 at 5:00 p.m. in the Orange County Sanitation District Headquarters. ROLL CALL AND DECLARATION OF QUORUM: The Clerk of the Board declared a quorum present as follows: PRESENT:Jon Dumitru, Christine Marick, Pat Burns, Ryan Gallagher, Carlos Leon, Jamie Valencia and Chad Wanke ABSENT:None 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; Kelly Lore, Clerk of the Board; Mo Abiodun; Jackie Castro; Raul Cuellar; Don Cutler; Martin Dix; Justin Fenton; David Haug; Cindy Murra; Andrew Nguyen; Thomas Vu; Kevin Work; Sammady Yi; and Ruth Zintzun were present in the Huntington Beach Room. OTHERS PRESENT: Scott Smith, General Counsel and Danielle Dychter, Special Counsel, Michael Sullivan & Associates LLP were present in the Huntington Beach Room. PUBLIC COMMENTS: None. REPORTS: Chair Dumitru and General Manager Rob Thompson did not provide reports. CONSENT CALENDAR: 1.APPROVAL OF MINUTES 2026-4699 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 4 STEERING COMMITTEE Minutes August 26, 2026 Approve minutes of the Regular meeting of the Steering Committee held July 22, 2026. AYES:Jon Dumitru, Christine Marick, Pat Burns, Ryan Gallagher, Carlos Leon and Jamie Valencia NOES:None ABSENT:Chad Wanke ABSTENTIONS:None NON-CONSENT: 2.FY 2025-26 BUDGET AMENDMENT 2026-5003 Originator: Wally Ritchie Approve a budget increase of $27,900,000 for FY 2025-26, for a total budget as follows: $FY 2025-26 Net Operating $260,365,399 Self-Insurance $6,745,565 Net Capital Improvement Program $345,859,620 Debt/COP Service $60,431,104 Intra-District Joint Equity Purchase/Sale (1)$3,500,000 Total $676,901,688 (1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15) AYES:Jon Dumitru, Christine Marick, Pat Burns, Ryan Gallagher, Carlos Leon and Jamie Valencia NOES:None ABSENT:Chad Wanke ABSTENTIONS:None INFORMATION ITEMS: None. Page 2 of 4 STEERING COMMITTEE Minutes August 26, 2026 DEPARTMENT HEAD REPORTS: None. Director Wanke arrived at the meeting at 5:12 p.m. during Closed Session. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS, 54956.9(d)(1) & 54956.9(D)(2) The Committee convened in closed session at 5:04 p.m. Confidential minutes of the Closed Sessions have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session meetings. CS-1 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(1) 2026-5044 CONVENED IN CLOSED SESSION: Number of Cases: 2 1 A. Emmanuel Rios v. Orange County Sanitation District, Workers’ Compensation Claim, Workers’ Compensation Appeals Board, Case No. ADJ20936106; and. B. Julia Ha v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-01484899-CU-WT-CJC. CS-2 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(2) 2026-5061 CONVENED IN CLOSED SESSION: Number of Potential Cases: 1 Significant exposure to litigation. RECONVENED IN REGULAR SESSION. The Committee reconvened in regular session at 5:27 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Scott Smith did not provide a report. Page 3 of 4 STEERING COMMITTEE Minutes August 26, 2026 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Dumitru declared the meeting adjourned at 5:29 p.m. to the next Regular Steering Committee meeting to be held on Wednesday, September 23, 2026 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 4 of 4 Orange County Sanitation District Minutes for the OPERATIONS COMMITTEE Wednesday, September 2, 2026 5:00 PM Headquarters - Board Room 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Operations Committee of the Orange County Sanitation District was called to order by Committee Chairman Pat Burns on Wednesday, September 2, 2026 at 5:00 p.m. in the Orange County Sanitation District Headquarters. Board Vice Chairwoman Christine Marick 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:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat, Gene Hernandez (Alternate) and Cindy Tran (Alternate) ABSENT:Johnathan Ryan Hernandez and Dan Ferons (Alternate) 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; Jon Bradley; Andrew Brown; Cheri Calisang; Sam Choi; Raul Cuellar; Thys DeVries; Martin Dix; Carena Duarte; Justin Fenton; Al Garcia; David Haug; Tom Meregillano; Nick Oswald; Aldwin Ramirez; Valerie Ratto; Natalie Shamma; Thomas Vu; Kevin Work; and Ruth Zintzun were present in the Board Room. OTHERS PRESENT: Mal Richardson, General Counsel, was present in the Board Room. Robert Bell was present virtually. PUBLIC COMMENTS: None. REPORTS: Chair Burns did not provide a report. General Manager Rob Thompson announced that OC San Administrative Offices would be closed on Monday, September 7, in observance of the Labor Day holiday. He also reminded the Board of Directors that a Special Board Meeting for the annual State of OC San would be held on Friday, September 18, 2026, at 11:30 a.m. at OC San Headquarters. Page 1 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2026-4725 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the Regular meeting of the Operations Committee held July 1, 2026. AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 2. COOPERATIVE PROCUREMENT WITH STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES FOR FUEL PURCHASE PROGRAM 2026-5031 Originator: Riaz Moinuddin A. Approve a Change Order amount of $135,000 to Blanket Purchase Order 109745-OB for the Fleet Fuel Program under the State of California Department of General Services Master Agreement No. 5-19-99-19 with WEX Bank, for a total amount not to exceed $275,000 for the term July 1, 2026, through June 30, 2027; B. Approve a one (1) year renewal option at an amount not to exceed $275,000; and C. Approve an annual contingency of $55,000 (20%). AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None Page 2 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 3. QUARTERLY ODOR COMPLAINT REPORT 2026-5041 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Review and file the Fiscal Year 2025-26 Fourth Quarter Odor Complaint Report. AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 4. FLEET VEHICLE REPLACEMENT PURCHASES 2026-5048 Originator: Riaz Moinuddin A. Approve the purchase of replacement vehicles and electric utility carts for Orange County Sanitation District’s fleet as initially approved in the adopted Fiscal Year 2026-27 Budget in the not to exceed amount of $1,844,000; and B. Authorize the General Manager and Purchasing Manager to purchase replacement vehicles and carts during the fiscal year in the not to exceed amount listed above, utilizing the method of procurement determined by the Purchasing Manager to be in the best interest of the Orange County Sanitation District. AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 5.2026-5059 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Page 3 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 A. Approve a Sole Source Purchase Order to Cooper Machinery Services, LLS for the procurement of two spare air intake manifolds for three engines in Central Generation at Plant No. 1 for a total amount not to exceed $242,431, including applicable sales tax & freight; and B. Approve a contingency of $24,243 (10%). AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 6. PLANT NO. 2 TRICKLING FILTER A, B, & C FILAMENT-WOUND BUSHINGS 2026-5058 Originator: Riaz Moinuddin A. Approve a Sole Source Purchase Order to Ovivo USA, LLC for four filament-wound bushing conversions for Plant No. 2, for an amount not to exceed $370,940, plus applicable sales tax; and B. Approve a contingency of $37,094 (10%). AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 7. BITTER POINT PUMP STATION MAIN SEWAGE PUMP OVERHAUL 2026-5063 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Page 4 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 8. ENGINEERING PROGRAM CONTRACT PERFORMANCE REPORT 2026-4913 Originator: Mike Dorman Receive and file the Engineering Program Contract Performance Report for the period ending June 30, 2026. AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 9. PARTIAL QUITCLAIM DEED, EASEMENT RELINQUISHMENT AGREEMENT, GRANT OF EASEMENT, AND ENCROACHMENT AGREEMENT AT 3150 BEAR STREET, COSTA MESA 2026-4800 Originator: Mike Dorman Recommend to the Board of Director to: A. Approve the execution of a Partial Quitclaim Deed and the Easement Relinquishment Agreement for an easement at 3150 Bear Street, Costa Mesa, California, with MTHCALV-I BEAR STREET, LLC, and accept $165,000 as consideration for the relinquished easement rights, together with a Grant of Easement and an Encroachment Agreement, in forms approved by General Counsel; and B. Direct the Clerk of the Board to record documents with the Orange County Clerk-Recorder’s Office. AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None Page 5 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None 10. LEASE AGREEMENT WITH FOUNDERS RSG LP, PROVIDING ORANGE COUNTY SANITATION DISTRICT PARCEL FOR PARKING AND/OR RELATED ACTIVITIES 2026-5035 Originator: Mike Dorman Approve the execution of a Lease Agreement with Founders RSG LP, a California limited partnership, to allow paving, striping, parking, and related improvements over a 4-foot wide portion of the Orange County Sanitation District's 50-foot wide utility corridor which abuts 21532 South Brookhurst Street in Huntington Beach, for an initial term of five (5) years beginning on the date the Agreement is executed; and an option to extend for up to two (2) additional five-year periods, at an annual rent of $500, and the collection of $442.50 in back rent, for the interim occupancy period, in a form approved by General Counsel. AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None NON-CONSENT: 11. SIPHON ASSESSMENTS IN ANAHEIM, NEWPORT BEACH, AND ORANGE, PROJECT NO. PS25-01 2026-4837 Originator: Mike Dorman Page 6 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 A. Find that the recommended action is exempt from the California Environmental Quality Act (CEQA) under the Class 6 categorical exemption set forth in CEQA Guidelines Section 15306, Information Collection, and the statutory exemption set forth in CEQA Guidelines Section 15262, Feasibility and Planning Studies; B. Approve a Professional Services Agreement with HDR Engineering, Inc., to provide engineering services for the Siphon Assessments in Anaheim, Newport Beach, and Orange, Project No. PS25-01, for an amount not to exceed $2,781,000; and C. Approve a contingency of $278,100 (10%). AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat and Gene Hernandez (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez, Dan Ferons (Alternate) and Cindy Tran (Alternate) ABSTENTIONS:None Alternate Director Cindy Tran arrived at the meeting at 5:13 p.m. 12. MANHOLE FRAME AND COVER REPLACEMENT SERVICES, SPECIFICATION NO. S-2026-729BD 2026-5060 Originator: Riaz Moinuddin A. Approve a General Services Contract to Ayala Engineering, Inc. to provide Manhole Frame and Cover Replacement Services, Specification No. S-2026-729BD, for a total amount not to exceed $1,260,350 for the period beginning November 1, 2026, through October 31, 2027, with four (4) one-year renewal options; and B. Approve an annual contingency of $126,035 (10%). AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat, Gene Hernandez (Alternate) and Cindy Tran (Alternate) Page 7 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 NOES:None ABSENT:Johnathan Ryan Hernandez and Dan Ferons (Alternate) ABSTENTIONS:None 13. CHEMICAL SUPPLIER AGREEMENT FOR THE PURCHASE OF LIQUID ANIONIC POLYMER, SPECIFICATION NO. SSJ 2945 2026-5043 Originator: Riaz Moinuddin AYES:Joyce Ahn, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Christine Marick, Robert Ooten, Bonnie Peat, Gene Hernandez (Alternate) and Cindy Tran (Alternate) NOES:None ABSENT:Johnathan Ryan Hernandez and Dan Ferons (Alternate) ABSTENTIONS:None INFORMATION ITEMS: 14. SALE OF ENERGY CREDITS 2026-5027 Originator: Wally Ritchie Information Item. Page 8 of 9 OPERATIONS COMMITTEE Minutes September 2, 2026 DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Burns declared the meeting adjourned at 5:28 p.m. to the next Regular Operations Committee meeting to be held on Wednesday, October 7, 2026 at 5:00 p.m. Submitted by: _____________________ Jackie Castro, CMC Assistant Clerk of the Board Page 9 of 9 Orange County Sanitation District Minutes for the ADMINISTRATION COMMITTEE Wednesday, September 9, 2026 5:00 PM Headquarters - Board Room 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 Committee Vice Chairman Jose Medrano on Wednesday, September 9, 2026 at 5:00 p.m. in the Orange County Sanitation District Headquarters. Board Chairman Jon Dumitru led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM: Assistant Clerk of the Board Tania Moore declared a quorum present as follows: PRESENT:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Jamie Valencia, Chad Wanke and Jordan Wu ABSENT:David Shawver and Erik Weigand 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; Tania Moore, Assistant Clerk of the Board; Mo Abiodun; Cheri Calisang; Sam Choi; Daisy Covarrubias; Thys DeVries; Al Garcia; David Haug; Rebecca Long; Joe Manzella; Tom Meregillano; Rob Michaels; Andrew Nguyen; Sammady Yi; and Ruth Zintzun were present in the Board Room. OTHERS PRESENT: Scott Smith, General Counsel and Cori Takkinen, Townsend Public Affairs were present in the Board Room. Bob Bell; Frederick Dilly and Darren Hodge, were present virtually. PUBLIC COMMENTS: There were no public comments. Ms. Moore announced that Late Communication had been received, after the publication of the agenda, from the Director of Finance, regarding changes to the recommendation for Item No. 10. REPORTS: Vice Chair Medrano did not provide a report. General Manager Rob Thompson reminded the Committee that a Special Board Meeting for the annual State of OC San would be held on Page 1 of 7 ADMINISTRATION COMMITTEE Minutes September 9, 2026 Friday, September 18, 2026, at 11:30 a.m. at OC San Headquarters. CONSENT CALENDAR: 1.APPROVAL OF MINUTES 2026-4735 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the Regular meeting of the Administration Committee held July 8, 2026. AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand ABSTENTIONS:None 2.PUBLIC AFFAIRS UPDATE FOR THE MONTHS OF JULY AND AUGUST 2026 2026-4951 Originator: Jennifer Cabral Receive and file the Public Affairs Update for the months of July and August 2026. AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand ABSTENTIONS:None 3.REIMBURSEMENTS TO BOARD MEMBERS AND STAFF 2026-5036 Originator: Wally Ritchie Receive and file report of reimbursements to Board Members and Staff per Government Code Section 53065.5 for the period July 1, 2025 through June 30, 2026. Page 2 of 7 ADMINISTRATION COMMITTEE Minutes September 9, 2026 AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand ABSTENTIONS:None 4.TERMINATION OF CONFIDENTIALITY AND COMMON INTEREST AGREEMENT 2026-5042 Originator: Lan Wiborg AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand ABSTENTIONS:None 5.ENVIRONMENTAL REGULATORY REPORTS 2026-5040 Originator: Lan Wiborg Receive and file the following environmental regulatory reports: Annual Biosolids Management Compliance Report CY 2025, Annual Pretreatment Program Report FY 2025 (July 2024-June 2025), Semi-Annual Pretreatment Program Report (July-December 2025), Annual Mandatory Reporting of Greenhouse Gas Emissions Reports CY 2025, Annual Air Quality Emissions Reports CY 2025, and the Annual Marine Monitoring Report FY 2025 (July 2024-June 2025). AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand Page 3 of 7 ADMINISTRATION COMMITTEE Minutes September 9, 2026 ABSTENTIONS:None 6.NETWORK TEST ACCESS POINTS FOR INDUSTRIAL CONTROL SYSTEM NETWORK AND OFFICE NETWORK 2026-5068 Originator: Wally Ritchie AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand ABSTENTIONS:None 7.INDUSTRIAL CONTROL SYSTEMS FIREWALL UPGRADE 2026-5070 Originator: Wally Ritchie A. Approve a Purchase Order Contract to ePlus Technology, Inc. for the purchase of four Industrial Control System firewalls and professional services utilizing the OMNIA Cooperative Purchasing Agreement, Contract No. R250307, for a total amount not to exceed $476,442 (includes sales tax); and B. Approve a contingency of $47,644 (10%). AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver, Jamie Valencia and Erik Weigand ABSTENTIONS:None Page 4 of 7 ADMINISTRATION COMMITTEE Minutes September 9, 2026 NON-CONSENT: Committee Chairwoman Jamie Valencia arrived at the meeting at 5:07 p.m. during the presentation for Item No. 8. 8.LEGISLATIVE AFFAIRS UPDATE FOR THE MONTHS OF JULY AND AUGUST 2026 2026-5045 Originator: Jennifer Cabral Receive and file the Legislative Affairs Update for the months of July and August 2026. 9.WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2026A 2026-4976 Originator: Wally Ritchie Page 5 of 7 ADMINISTRATION COMMITTEE Minutes September 9, 2026 A. Adopt Resolution No. OC SAN 26-XX titled: “A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the execution and delivery by the District of an Installment Purchase Agreement, a Trust Agreement, a Purchase Agreement, a Continuing Disclosure Agreement and an Escrow Agreement in connection with the Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2026A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $60,000,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Revenue Obligations and authorizing the execution of necessary documents and related actions”; and B. That the Orange County Sanitation District Financing Corporation approve the documents supporting and authorizing the Revenue Obligations in an aggregate amount not to exceed $60,000,000. AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Jamie Valencia, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver and Erik Weigand ABSTENTIONS:None 10.SALE OF ENERGY CREDITS 2026-5029 Originator: Wally Ritchie AYES:Debbie Baker, Ted Bui, Jon Dumitru, Melinda Liu, Christine Marick, Jose Medrano, Jordan Nefulda, Andrew Nguyen, Jamie Valencia, Chad Wanke and Jordan Wu NOES:None ABSENT:David Shawver and Erik Weigand Page 6 of 7 ADMINISTRATION COMMITTEE Minutes September 9, 2026 ABSTENTIONS:None INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Valencia declared the meeting adjourned at 5:21 p.m. to the next Regular Administration Committee meeting to be held on Wednesday, October 14, 2026 at 5:00 p.m. Submitted by: _____________________ Tania Moore, CMC Assistant Clerk of the Board Page 7 of 7 BOARD OF DIRECTORS Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-4824 Agenda Date:10/28/2026 Agenda Item No:4. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF SEPTEMBER 2026 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of September 2026. BACKGROUND The California Government Code requires that a monthly report of investment transactions be provided to the legislative body.Attached is the monthly report of investment transactions for the month ended September 30, 2026. RELEVANT STANDARDS ·Comply with California Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS 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: ·Report of the Investment Transactions - September 2026 Orange County Sanitation District Printed on 10/15/2026Page 1 of 1 powered by Legistar™ Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System Account Beginning Cash Principal Cash: - 27,997,121.94 Income Cash: 27,997,121.94 Total Cash: - 01-Sep- 26 01-Sep-26 58989V2G 8 I 300 PAID ACCRUED INTEREST ON PURCHASE OF MET TOWER GLOBAL MTN 4.850% 1/16/27 ------2,576.56 ---SEI 01-Sep- 26 01-Sep-26 756109AS 3 I 300 PAID ACCRUED INTEREST ON PURCHASE OF REALTY INCOME CORP 3.000% 1/15/27 ------586.50 ---SEI 01-Sep- 26 01-Sep-26 756109AS 3 I 300 PAID ACCRUED INTEREST ON PURCHASE OF REALTY INCOME CORP 3.000% 1/15/27 ------1,042.67 ---SEI 01-Sep- 26 01-Sep-26 14912EJ16 I 310 INTEREST EARNED ON CATERPILLAR FINL SVCS C P 9/01/26 $1 PV ON 1500000.0000 SHARES DUE 9/1/2026 1,500,000 PAR VALUE AT 100 % -----150.83 ---SEI 01-Sep- 26 01-Sep-26 31846V567 FGZXX I 310 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 8/31/2026 INTEREST FROM 8/1/26 TO 8/31/26 -----1,956.90 ---SEI 01-Sep- 26 31-Aug- 26 01-Sep-26 58989V2G 8 P 10 PURCHASED PAR VALUE OF MET TOWER GLOBAL MTN 4.850% 1/16/27 /SMBC NIKKO SECURITIES AMERICA/425,000 PAR VALUE AT 100.202 % 425,000.0000 100.2 020 ----425,858.50 425,858.50 --SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 1 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 01-Sep- 26 31-Aug- 26 01-Sep-26 756109AS 3 P 10 PURCHASED PAR VALUE OF REALTY INCOME CORP 3.000% 1/15/27 /USBCUS31 US BANCORP INVEST US/153,000 PAR VALUE AT 99.562 % 153,000.0000 99.56 20 ----152,329.86 152,329.86 --SEI 01-Sep- 26 31-Aug- 26 01-Sep-26 756109AS 3 P 10 PURCHASED PAR VALUE OF REALTY INCOME CORP 3.000% 1/15/27 /BARCLAYS CAPITAL INC. FIXED IN/272,000 PAR VALUE AT 99.562 % 272,000.0000 99.56 20 ----270,808.64 270,808.64 --SEI 01-Sep- 26 01-Sep- 26 01-Sep-26 14912EJ16 P 20 MATURED PAR VALUE OF CATERPILLAR FINL SVCS C P 9/01/26 1,500,000 PAR VALUE AT 100 % - 1,500,000.000 0 100.0 000 ---1,499,849.17 - 1,499,849.17 --SEI 01-Sep- 26 01-Sep- 26 01-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 646,797.2700 -----646,797.27 646,797.27 --SEI 01-Sep- 26 01-Sep- 26 01-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -649,537.4200 ----649,537.42 -649,537.42 --SEI 01-Sep- 26 01-Sep- 26 01-Sep-26 14912EJ81 P 10 PURCHASED PAR VALUE OF CATERPLR FIN SRV CO C P 9/08/26 /WELLS FARGO SECURITIES, LLC/XOTC 650,000 PAR VALUE AT 99.92883385 % 650,000.0000 99.92 88 ----649,537.42 649,537.42 --SEI Post Date 01-Sep-26 Total ---1,956.90 -4,054.90 --SEI 02-Sep- 26 02-Sep- 26 02-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,956.9000 -----1,956.90 1,956.90 --SEI Post Date 02-Sep-26 Total ----1,956.90 1,956.90 --SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 2 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 04-Sep- 26 04-Sep-26 92868CAA 9 I 310 INTEREST EARNED ON VOLKSWAGEN AUTO 3.828% 3/22/27 $1 PV ON 74456.3900 SHARES DUE 9/4/2026 -----3.58 ---SEI Post Date 04-Sep-26 Total ---3.58 ---SEI 08-Sep- 26 08-Sep-26 14912EJ81 I 310 INTEREST EARNED ON CATERPLR FIN SRV CO C P 9/08/26 $1 PV ON 650000.0000 SHARES DUE 9/8/2026 650,000 PAR VALUE AT 100 % -----462.58 ---SEI 08-Sep- 26 08-Sep- 26 08-Sep-26 14912EJ81 P 20 MATURED PAR VALUE OF CATERPLR FIN SRV CO C P 9/08/26 650,000 PAR VALUE AT 100 % -650,000.0000 100.0 000 ---649,537.42 -649,537.42 --SEI 08-Sep- 26 08-Sep- 26 08-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 650,003.5800 -----650,003.58 650,003.58 --SEI 08-Sep- 26 08-Sep- 26 08-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -217,213.2800 ----217,213.28 -217,213.28 --SEI 08-Sep- 26 08-Sep- 26 08-Sep-26 912797WN 3 P 10 PURCHASED PAR VALUE OF U S TREASURY BILL 1/05/27 /J.P. MORGAN SECURITIES LLC/220,000 PAR VALUE AT 98.73330909 % 220,000.0000 98.73 33 ----217,213.28 217,213.28 --SEI Post Date 08-Sep-26 Total ----3.58 466.16 --SEI 09-Sep- 26 09-Sep-26 880591EU 2 I 300 PAID ACCRUED INTEREST ON PURCHASE OF T V A 2.875% 2/01/27 ------1,441.49 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 3 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 09-Sep- 26 25-Jul-26 25-Jul-26 3137BRQJ 7 FHL2526E P 20 MATURED -REV PAR VALUE OF F H L M C MLTCL MTG 2.570% 7/25/26 281,446.0800 100.0 000 ----281,446.08 279,919.14 -1,526.94 -SEI 09-Sep- 26 25-Jul-26 25-Jul-26 3137BRQJ 7 FHL2526E P 20 MATURED PAR VALUE OF F H L M C MLTCL MTG 2.570% 7/25/26 /DIRECT FROM ISSUER/ -281,446.0800 ----281,446.08 -279,919.14 1,526.94 -SEI 09-Sep- 26 08-Sep- 26 09-Sep-26 880591EU 2 P 10 PURCHASED PAR VALUE OF T V A 2.875% 2/01/27 /WELLS FARGO SECURITIES, LLC/475,000 PAR VALUE AT 99.534 % 475,000.0000 99.53 40 ----472,786.50 472,786.50 --SEI 09-Sep- 26 09-Sep- 26 09-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -474,227.9900 ----474,227.99 -474,227.99 --SEI 09-Sep- 26 09-Sep- 26 09-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,220.0100 ----3,220.01 -3,220.01 --SEI Post Date 09-Sep-26 Total ---3,220.01 -4,661.50 --SEI 10-Sep- 26 10-Sep- 26 10-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,220.0100 -----3,220.01 3,220.01 --SEI Post Date 10-Sep-26 Total ----3,220.01 3,220.01 --SEI 14-Sep- 26 14-Sep-26 3133ERHG 9 FFC4426V I 310 INTEREST EARNED ON F F C B DEB 3.75185% 9/14/26 $1 PV ON 2010000.0000 SHARES DUE 9/14/2026 -----19,271.99 ---SEI 14-Sep- 26 14-Sep-26 3130AYPN 0 I 300 PAID ACCRUED INTEREST ON PURCHASE OF F H L B DEB 4.125% 1/15/27 ------6,760.42 ---SEI 14-Sep- 26 14-Sep- 26 14-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,029,271.990 0 -----2,029,271.99 2,029,271.99 --SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 4 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 14-Sep- 26 14-Sep- 26 14-Sep-26 3133ERHG 9 FFC4426V P 20 MATURED PAR VALUE OF F F C B DEB 3.75185% 9/14/26 2,010,000 PAR VALUE AT 100 % - 2,010,000.000 0 100.0 000 ---2,010,000.00 - 2,011,668.30 -1,668.30 -SEI 14-Sep- 26 14-Sep- 26 14-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z - 1,997,958.200 0 ----1,997,958.20 - 1,997,958.20 --SEI 14-Sep- 26 14-Sep- 26 14-Sep-26 3130AYPN 0 P 10 PURCHASED PAR VALUE OF F H L B DEB 4.125% 1/15/27 /BOFA SECURITIES, INC./FXD INC/1,000,000 PAR VALUE AT 99.98 % 1,000,000.000 0 99.98 00 ----999,800.00 999,800.00 --SEI 14-Sep- 26 14-Sep- 26 14-Sep-26 93114FM 27 P 10 PURCHASED PAR VALUE OF WALMART INC C P 12/02/26 /BARCLAYS CAPITAL INC. FIXED IN/XOTC 1,000,000 PAR VALUE AT 99.139778 % 1,000,000.000 0 99.13 98 ----991,397.78 991,397.78 --SEI Post Date 14-Sep-26 Total ----10,843.27 -1,668.30 -SEI 15-Sep- 26 15-Sep-26 10807VAA 3 I 310 INTEREST EARNED ON BRIDGECRE LDG AT 4.383% 4/15/27 $1 PV ON 137.0000 SHARES DUE 9/15/2026 $0.00320/PV ON 42,828.66 PV DUE 9/15/26 -----137.00 ---SEI 15-Sep- 26 15-Sep-26 00287YDR 7 I 310 INTEREST EARNED ON ABBVIE INC 4.800% 3/15/27 $1 PV ON 1266000.0000 SHARES DUE 9/15/2026 -----30,384.00 ---SEI 15-Sep- 26 15-Sep-26 59523UAT 4 I 310 INTEREST EARNED ON MID AMERICA APTS LP 1.100% 9/15/26 $1 PV ON 375000.0000 SHARES DUE 9/15/2026 -----2,062.50 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 5 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 17-Sep- 26 17-Sep- 26 17-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -653,395.0700 ----653,395.07 -653,395.07 --SEI Post Date 17-Sep-26 Total -------SEI 18-Sep- 26 18-Sep-26 64953BBF 4 I 310 INTEREST EARNED ON NEW YORK LIFE 5.450% 9/18/26 $1 PV ON 1000000.0000 SHARES DUE 9/18/2026 -----27,250.00 ---SEI 18-Sep- 26 18-Sep-26 03066CAA 6 I 310 INTEREST EARNED ON AMERICREDIT AM 3.986% 3/18/27 $1 PV ON 5502.8600 SHARES DUE 9/18/2026 -----18.89 ---SEI 18-Sep- 26 17-Sep- 26 18-Sep-26 74271UM 72 P 10 PURCHASED PAR VALUE OF PROCTER GAMBLE CO C P 12/07/26 /GOLDMAN SACHS & CO. LLC/XOTC 1,000,000 PAR VALUE AT 99.1 % 1,000,000.000 0 99.10 00 ----991,000.00 991,000.00 --SEI 18-Sep- 26 18-Sep- 26 18-Sep-26 64953BBF 4 P 20 MATURED PAR VALUE OF NEW YORK LIFE 5.450% 9/18/26 1,000,000 PAR VALUE AT 100 % - 1,000,000.000 0 100.0 000 ---1,000,000.00 - 1,009,660.00 -9,660.00 -SEI 18-Sep- 26 18-Sep- 26 18-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,027,250.000 0 -----1,027,250.00 1,027,250.00 --SEI 18-Sep- 26 18-Sep- 26 18-Sep-26 03066CAA 6 P 20 PAID DOWN PAR VALUE OF AMERICREDIT AM 3.986% 3/18/27 CMO FINAL PAYDOWN -5,502.8600 ----5,502.86 -5,502.86 --SEI 18-Sep- 26 18-Sep- 26 18-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -985,478.2500 ----985,478.25 -985,478.25 --SEI Post Date 18-Sep-26 Total ----17,608.89 -9,660.00 -SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 7 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 21-Sep- 26 21-Sep-26 92868CAA 9 I 310 INTEREST EARNED ON VOLKSWAGEN AUTO 3.828% 3/22/27 $1 PV ON 253.3500 SHARES DUE 9/20/2026 $0.00130/PV ON 74,456.39 PV DUE 9/20/26 -----253.35 ---SEI 21-Sep- 26 21-Sep- 26 21-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 253.3500 -----253.35 253.35 --SEI 21-Sep- 26 21-Sep- 26 21-Sep-26 92868CAA 9 P 20 PAID DOWN PAR VALUE OF VOLKSWAGEN AUTO 3.828% 3/22/27 CMO FINAL PAYDOWN -74,456.3900 ----74,456.39 -74,456.39 --SEI 21-Sep- 26 21-Sep- 26 21-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 74,456.3900 -----74,456.39 74,456.39 --SEI Post Date 21-Sep-26 Total ----253.35 --SEI 23-Sep- 26 23-Sep-26 4581X0CY 2 I 300 PAID ACCRUED INTEREST ON PURCHASE OF INTER AMERICAN DEV 2.375% 7/07/27 ------10,027.78 ---SEI 23-Sep- 26 23-Sep-26 59157UJP 6 I 310 INTEREST EARNED ON METLIFE SHORT TERM FDG C P 9/23/26 $1 PV ON 1866000.0000 SHARES DUE 9/23/2026 1,866,000 PAR VALUE AT 100 % -----25,734.73 ---SEI 23-Sep- 26 22-Sep- 26 23-Sep-26 4581X0CY 2 P 10 PURCHASED PAR VALUE OF INTER AMERICAN DEV 2.375% 7/07/27 /WELLS FARGO SECURITIES, LLC/2,000,000 PAR VALUE AT 98.4 % 2,000,000.000 0 98.40 00 ----1,968,000.00 1,968,000.00 --SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 8 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 23-Sep- 26 23-Sep- 26 23-Sep-26 59157UJP 6 P 20 MATURED PAR VALUE OF METLIFE SHORT TERM FDG C P 9/23/26 1,866,000 PAR VALUE AT 100 % - 1,866,000.000 0 100.0 000 ---1,840,265.27 - 1,840,265.27 --SEI 23-Sep- 26 23-Sep- 26 23-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -112,027.7800 ----112,027.78 -112,027.78 --SEI Post Date 23-Sep-26 Total ----15,706.95 --SEI 25-Sep- 26 25-Sep-26 3137BVZ 82 FHL3450 I 310 INTEREST EARNED ON F H L M C MLTCL MT 3.85138% 1/25/27 $1 PV ON 2743.3800 SHARES DUE 9/25/2026 $0.00321/PV ON 854,774.24 PV DUE 9/25/26 -----2,743.38 ---SEI 25-Sep- 26 25-Sep-26 3137BTUM 1 FHL3326 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 3.347% 11/25/26 $1 PV ON 1594.9700 SHARES DUE 9/25/2026 $0.00279/PV ON 571,845.84 PV DUE 9/25/26 -----1,594.97 ---SEI 25-Sep- 26 25-Sep-26 3137BTAC 5 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 3.300% 10/25/26 $1 PV ON 2546.6200 SHARES DUE 9/25/2026 $0.00275/PV ON 926,044.72 PV DUE 9/25/26 -----2,546.62 ---SEI 25-Sep- 26 25-Sep-26 3137FQXJ 7 FHL2526C I 310 INTEREST EARNED ON F H L M C MLTCL MT 2.525% 10/25/26 $1 PV ON 1089.1200 SHARES DUE 9/25/2026 $0.00210/PV ON 517,602.19 PV DUE 9/25/26 -----1,089.12 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 9 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep-26 3137BUX 60 FHL3426 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 3.413% 12/25/26 $1 PV ON 2987.4900 SHARES DUE 9/25/2026 $0.00284/PV ON 1,050,393.12 PV DUE 9/25/26 -----2,987.49 ---SEI 25-Sep- 26 25-Sep-26 3137BXQY 1 FHL3227A I 310 INTEREST EARNED ON F H L M C MLTCL MT 3.224% 3/25/27 $1 PV ON 2528.9900 SHARES DUE 9/25/2026 $0.00269/PV ON 941,310.23 PV DUE 9/25/26 -----2,528.99 ---SEI 25-Sep- 26 25-Sep-26 4581X0ED 6 IB55527 I 300 PAID ACCRUED INTEREST ON PURCHASE OF INTER AMER M T N 5.55652% 4/12/27 ------7,263.10 ---SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137BTUM 1 FHL3326 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.347% 11/25/26 -176,483.1300 ----176,483.13 -175,913.15 569.98 -SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137BUX 60 FHL3426 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.413% 12/25/26 -201,436.2200 ----201,436.22 -200,569.25 866.97 -SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137BVZ 82 FHL3450 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 3.85138% 1/25/27 -79,334.8700 ----79,334.87 -78,913.40 421.47 -SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137BTAC 5 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.300% 10/25/26 -192,187.0300 ----192,187.03 -191,248.62 938.41 -SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 10 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep- 26 25-Sep-26 3137FQXJ 7 FHL2526C P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 2.525% 10/25/26 -289,898.2000 ----289,898.20 -287,119.84 2,778.36 -SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 950,301.0300 -----950,301.03 950,301.03 --SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137BXQY 1 FHL3227A P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 3.224% 3/25/27 -2,057.8000 ----2,057.80 -2,044.13 13.67 -SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -903,486.3100 ----903,486.31 -903,486.31 --SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 4581X0ED 6 IB55527 P 10 PURCHASED PAR VALUE OF INTER AMER M T N 5.55652% 4/12/27 /DEUTGB2LGLO DEUTSCHE BK LONDON/900,000 PAR VALUE AT 100.09 % 900,000.0000 100.0 900 ----900,810.00 900,810.00 --SEI Post Date 25-Sep-26 Total ----11,816.33 5,588.86 -SEI 28-Sep- 26 28-Sep- 26 28-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -104,057.1000 ----104,057.10 -104,057.10 --SEI 28-Sep- 26 28-Sep- 26 28-Sep-26 912797VH 7 P 10 PURCHASED PAR VALUE OF U S TREASURY BILL 12/17/26 /J.P. MORGAN SECURITIES LLC/105,000 PAR VALUE AT 99.102 % 105,000.0000 99.10 20 ----104,057.10 104,057.10 --SEI Post Date 28-Sep-26 Total -------SEI 30-Sep- 26 30-Sep-26 3130APJ 55 I 301 RECEIVED ACCRUED INTEREST ON SALE OF F H L B DEB 1.250% 10/26/26 -----8,502.08 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 11 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LIQUID OPERATING PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 30-Sep-26 3136GCY 66 I 310 INTEREST EARNED ON F N M A M T N 4.000% 3/30/27 $1 PV ON 1000000.0000 SHARES DUE 9/30/2026 -----20,000.00 ---SEI 30-Sep- 26 30-Sep-26 P 210 CASH DISBURSEMENT PAID TO ORANGE COUNTY SANITATION DISTRICT OUTGOING DOMESTIC WIRE TRANSFER FROM LIQUID OPERATING PORTFOLIO ------1,000,000.00 ---SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 3130APJ 55 P 20 SOLD PAR VALUE OF F H L B DEB 1.250% 10/26/26 /WELLS FARGO SECURITIES, LLC/1,590,000 PAR VALUE AT 99.7896 % - 1,590,000.000 0 99.78 96 ---1,586,654.64 - 1,571,410.70 15,243.94 -SEI 30-Sep- 26 30-Sep- 26 30-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,615,156.720 0 -----1,615,156.72 1,615,156.72 --SEI 30-Sep- 26 30-Sep- 26 30-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z - 1,592,472.350 0 ----1,592,472.35 - 1,592,472.35 --SEI 30-Sep- 26 30-Sep- 26 30-Sep-26 912797WQ 6 P 10 PURCHASED PAR VALUE OF U S TREASURY BILL 1/19/27 /J.P. MORGAN SECURITIES LLC/600,000 PAR VALUE AT 98.74539167 % 600,000.0000 98.74 54 ----592,472.35 592,472.35 --SEI Post Date 30-Sep-26 Total -----956,253.98 15,243.94 -SEI Account 6745046600 Total -----868,226.58 10,239.50 -SEI Account Ending Cash Principal Cash: - 28,118,655.86 Income Cash: 28,118,655.86 Total Cash: - TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 12 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 10-Sep- 26 10-Sep- 26 10-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 100,800.0000 -----100,800.00 100,800.00 --SEI Post Date 10-Sep-26 Total ----100,800.00 --SEI 14-Sep- 26 14-Sep-26 023135DD 5 I 310 INTEREST EARNED ON AMAZON COM INC 4.250% 3/13/31 $1 PV ON 4900000.0000 SHARES DUE 9/13/2026 -----104,125.00 ---SEI 14-Sep- 26 14-Sep- 26 14-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 104,125.0000 -----104,125.00 104,125.00 --SEI Post Date 14-Sep-26 Total ----104,125.00 --SEI 15-Sep- 26 15-Sep-26 345282AD 9 I 310 INTEREST EARNED ON FORD CREDIT AT 4.940% 6/15/28 $1 PV ON 17813.0200 SHARES DUE 9/15/2026 $0.00393/PV ON 4,528,733.50 PV DUE 9/15/26 -----17,813.02 ---SEI 15-Sep- 26 15-Sep-26 14043KAK 1 I 310 INTEREST EARNED ON CAPITAL ONE PRIME 4.760% 8/15/28 $1 PV ON 20785.3400 SHARES DUE 9/15/2026 $0.00397/PV ON 5,240,000.00 PV DUE 9/15/26 -----20,785.34 ---SEI 15-Sep- 26 15-Sep-26 05522RDL 9 I 310 INTEREST EARNED ON BANK OF AMERICA 4.220% 4/15/31 $1 PV ON 17207.0500 SHARES DUE 9/15/2026 $0.00352/PV ON 4,893,000.00 PV DUE 9/15/26 -----17,207.05 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 14 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 15-Sep- 26 15-Sep-26 02582JKM 1 AE44529 I 310 INTEREST EARNED ON AMERICAN EXP 4.560% 12/17/29 $1 PV ON 40416.8000 SHARES DUE 9/15/2026 $0.00380/PV ON 10,636,000.00 PV DUE 9/15/26 -----40,416.80 ---SEI 15-Sep- 26 15-Sep-26 47800DAD 6 I 310 INTEREST EARNED ON JOHN DEERE OWNER TR 4.830% 9/17/29 $1 PV ON 10737.1500 SHARES DUE 9/15/2026 $0.00353/PV ON 3,046,000.00 PV DUE 9/15/26 -----10,737.15 ---SEI 15-Sep- 26 15-Sep-26 58773DAD 6 I 310 INTEREST EARNED ON MERCEDES BENZ 4.780% 12/17/29 $1 PV ON 18102.6200 SHARES DUE 9/15/2026 $0.00398/PV ON 4,544,591.29 PV DUE 9/15/26 -----18,102.62 ---SEI 15-Sep- 26 15-Sep-26 50118HAC 0 KCO2530 I 310 INTEREST EARNED ON KUBOTA CR OWNER TR 3.870% 5/15/30 $1 PV ON 4992.3000 SHARES DUE 9/15/2026 $0.00323/PV ON 1,548,000.00 PV DUE 9/15/26 -----4,992.30 ---SEI 15-Sep- 26 15-Sep-26 43816DAC 9 I 310 INTEREST EARNED ON HONDA AUTO 4.330% 3/15/29 $1 PV ON 5207.6400 SHARES DUE 9/15/2026 $0.00361/PV ON 1,443,224.26 PV DUE 9/15/26 -----5,207.64 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 15 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 15-Sep- 26 15-Sep-26 92887TAC 5 I 310 INTEREST EARNED ON VOLVO FINANCIAL 4.460% 5/15/29 $1 PV ON 7619.1600 SHARES DUE 9/15/2026 $0.00372/PV ON 2,050,000.00 PV DUE 9/15/26 -----7,619.16 ---SEI 15-Sep- 26 15-Sep-26 47787DAD 3 I 310 INTEREST EARNED ON JOHN DEERE OWNER 3.870% 8/15/30 $1 PV ON 3563.6300 SHARES DUE 9/15/2026 $0.00323/PV ON 1,105,000.00 PV DUE 9/15/26 -----3,563.63 ---SEI 15-Sep- 26 15-Sep-26 706916AC 7 I 310 INTEREST EARNED ON PENFED AUTO REC 4.650% 7/15/30 $1 PV ON 7401.7700 SHARES DUE 9/15/2026 $0.00336/PV ON 2,204,000.00 PV DUE 9/15/26 -----7,401.77 ---SEI 15-Sep- 26 15-Sep-26 448984AD 6 I 310 INTEREST EARNED ON HYUNDAI AUTO LEASE 4.620% 4/17/28 $1 PV ON 14858.5700 SHARES DUE 9/15/2026 $0.00385/PV ON 3,859,369.80 PV DUE 9/15/26 -----14,858.57 ---SEI 15-Sep- 26 15-Sep-26 31348SWZ 3 786064F I 310 INTEREST EARNED ON F H L M C #786064 5.762% 1/01/28 $1 PV ON 0.6300 SHARES DUE 9/15/2026 JULY FHLMC DUE 9/15/26 -----0.63 ---SEI 15-Sep- 26 15-Sep-26 95040QAH 7 I 310 INTEREST EARNED ON WELLTOWER INC 4.125% 3/15/29 $1 PV ON 3845000.0000 SHARES DUE 9/15/2026 -----79,303.13 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 16 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 15-Sep- 26 15-Sep-26 3137HPM 75 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 4.250% 1/15/31 $1 PV ON 21244.8600 SHARES DUE 9/15/2026 $0.00354/PV ON 5,998,549.10 PV DUE 9/15/26 -----21,244.86 ---SEI 15-Sep- 26 15-Sep-26 3133TCE 95 FHL3032 I 310 INTEREST EARNED ON F H L M C MLTCL MT 4.497% 8/15/32 $1 PV ON 3.3500 SHARES DUE 9/15/2026 $0.00375/PV ON 863.55 PV DUE 9/15/26 -----3.35 ---SEI 15-Sep- 26 15-Sep-26 12674BAB 1 CE44328 I 310 INTEREST EARNED ON CNH EQUIPMENT 4.300% 8/15/28 $1 PV ON 4035.6600 SHARES DUE 9/15/2026 $0.00358/PV ON 1,126,231.57 PV DUE 9/15/26 -----4,035.66 ---SEI 15-Sep- 26 15-Sep-26 44935CAD 3 I 310 INTEREST EARNED ON HYUNDAI AUTO RECV TR 4.790% 10/15/29 $1 PV ON 15231.6000 SHARES DUE 9/15/2026 $0.00360/PV ON 4,231,000.00 PV DUE 9/15/26 -----15,231.60 ---SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 345282AD 9 P 20 PAID DOWN PAR VALUE OF FORD CREDIT AT 4.940% 6/15/28 -406,127.7600 ----406,127.76 -406,762.33 --634.57 SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 58773DAD 6 P 20 PAID DOWN PAR VALUE OF MERCEDES BENZ 4.780% 12/17/29 -281,273.7300 ----281,273.73 -281,213.90 -59.83 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 17 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 15-Sep- 26 15-Sep- 26 15-Sep-26 43816DAC 9 P 20 PAID DOWN PAR VALUE OF HONDA AUTO 4.330% 3/15/29 -106,169.9700 ----106,169.97 -106,154.95 -15.02 SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 448984AD 6 P 20 PAID DOWN PAR VALUE OF HYUNDAI AUTO LEASE 4.620% 4/17/28 -606,660.4500 ----606,660.45 -607,134.40 --473.95 SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 31348SWZ 3 786064F P 20 PAID DOWN PAR VALUE OF F H L M C #786064 5.762% 1/01/28 AUGUST FHLMC DUE 9/15/26 -7.5000 ----7.50 -7.32 -0.18 SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,648,248.220 0 -----1,648,248.22 1,648,248.22 --SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 3137HPM 75 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.250% 1/15/31 -62,725.2900 ----62,725.29 -62,882.10 -156.81 -SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 3133TCE 95 FHL3032 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 4.497% 8/15/32 -27.8500 ----27.85 -27.88 --0.03 SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 12674BAB 1 CE44328 P 20 PAID DOWN PAR VALUE OF CNH EQUIPMENT 4.300% 8/15/28 -164,409.3600 ----164,409.36 -164,405.64 -3.72 SEI 15-Sep- 26 15-Sep- 26 15-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 267,677.9700 -----267,677.97 267,677.97 --SEI Post Date 15-Sep-26 Total ----287,337.67 -156.81 - 1,029.80 SEI 18-Sep- 26 18-Sep- 26 18-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z - 2,539,185.080 0 ----2,539,185.08 - 2,539,185.08 --SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 18 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 18-Sep- 26 18-Sep- 26 18-Sep-26 313385G 67 P 10 PURCHASED PAR VALUE OF F H L B DISC NTS 9/21/26 /BOFA SECURITIES, INC./FXD INC/2,540,000 PAR VALUE AT 99.96791654 % 2,540,000.000 0 99.96 79 ----2,539,185.08 2,539,185.08 --SEI Post Date 18-Sep-26 Total -------SEI 21-Sep- 26 21-Sep-26 36273VAD 7 I 310 INTEREST EARNED ON GM FINL AM LS TR 3.880% 1/22/29 $1 PV ON 4468.4700 SHARES DUE 9/20/2026 $0.00323/PV ON 1,382,000.00 PV DUE 9/20/26 -----4,468.47 ---SEI 21-Sep- 26 21-Sep-26 87269AAA 8 I 310 INTEREST EARNED ON T MOBILE US 4.250% 10/21/30 $1 PV ON 23948.7500 SHARES DUE 9/20/2026 $0.00354/PV ON 6,762,000.00 PV DUE 9/20/26 -----23,948.75 ---SEI 21-Sep- 26 21-Sep-26 92348KDY 6 I 310 INTEREST EARNED ON VERIZON MASTER TRUST 4.510% 3/20/30 $1 PV ON 29055.6700 SHARES DUE 9/20/2026 $0.00376/PV ON 7,731,000.00 PV DUE 9/20/26 -----29,055.67 ---SEI 21-Sep- 26 21-Sep-26 89239NAD 7 TLO4728 I 310 INTEREST EARNED ON TOYOTA LEASE OWNER 4.750% 2/22/28 $1 PV ON 13974.6300 SHARES DUE 9/20/2026 $0.00396/PV ON 3,530,432.43 PV DUE 9/20/26 -----13,974.63 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 19 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 21-Sep- 26 21-Sep-26 36225CC 20 080088M I 310 INTEREST EARNED ON G N M A I I #080088 5.250% 6/20/27 $1 PV ON 2.8700 SHARES DUE 9/20/2026 AUGUST GNMA DUE 9/20/26 -----2.87 ---SEI 21-Sep- 26 21-Sep-26 36225CNM 4 080395M I 310 INTEREST EARNED ON G N M A I I #080395 5.250% 4/20/30 $1 PV ON 4.7000 SHARES DUE 9/20/2026 AUGUST GNMA DUE 9/20/26 -----4.70 ---SEI 21-Sep- 26 21-Sep-26 36225CAZ 9 080023M I 310 INTEREST EARNED ON G N M A I I #080023 5.125% 12/20/26 $1 PV ON 0.7700 SHARES DUE 9/20/2026 AUGUST GNMA DUE 9/20/26 -----0.77 ---SEI 21-Sep- 26 21-Sep-26 36225DCB 8 080965M I 310 INTEREST EARNED ON G N M A I I #080965 5.375% 7/20/34 $1 PV ON 46.1400 SHARES DUE 9/20/2026 AUGUST GNMA DUE 9/20/26 -----46.14 ---SEI 21-Sep- 26 21-Sep-26 36225CN 28 080408M I 310 INTEREST EARNED ON G N M A I I #080408 5.250% 5/20/30 $1 PV ON 44.0300 SHARES DUE 9/20/2026 AUGUST GNMA DUE 9/20/26 -----44.03 ---SEI 21-Sep- 26 21-Sep-26 313385G 67 I 310 INTEREST EARNED ON F H L B DISC NTS 9/21/26 $1 PV ON 2540000.0000 SHARES DUE 9/21/2026 2,540,000 PAR VALUE AT 100 % -----814.92 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 20 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 21-Sep- 26 20-Sep- 26 21-Sep-26 89239NAD 7 TLO4728 P 20 PAID DOWN PAR VALUE OF TOYOTA LEASE OWNER 4.750% 2/22/28 -451,076.8500 ----451,076.85 -451,070.94 -5.91 SEI 21-Sep- 26 20-Sep- 26 21-Sep-26 36225CN 28 080408M P 20 PAID DOWN PAR VALUE OF G N M A I I #080408 5.250% 5/20/30 AUGUST GNMA DUE 9/20/26 -202.9200 ----202.92 -200.86 -2.06 SEI 21-Sep- 26 20-Sep- 26 21-Sep-26 36225CAZ 9 080023M P 20 PAID DOWN PAR VALUE OF G N M A I I #080023 5.125% 12/20/26 AUGUST GNMA DUE 9/20/26 -84.1000 ----84.10 -85.49 --1.39 SEI 21-Sep- 26 20-Sep- 26 21-Sep-26 36225CC 20 080088M P 20 PAID DOWN PAR VALUE OF G N M A I I #080088 5.250% 6/20/27 AUGUST GNMA DUE 9/20/26 -71.8400 ----71.84 -73.41 --1.57 SEI 21-Sep- 26 20-Sep- 26 21-Sep-26 36225CNM 4 080395M P 20 PAID DOWN PAR VALUE OF G N M A I I #080395 5.250% 4/20/30 AUGUST GNMA DUE 9/20/26 -26.5000 ----26.50 -26.26 -0.24 SEI 21-Sep- 26 20-Sep- 26 21-Sep-26 36225DCB 8 080965M P 20 PAID DOWN PAR VALUE OF G N M A I I #080965 5.375% 7/20/34 AUGUST GNMA DUE 9/20/26 -93.6000 ----93.60 -93.54 -0.06 SEI 21-Sep- 26 21-Sep- 26 21-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,063,101.840 0 -----3,063,101.84 3,063,101.84 --SEI 21-Sep- 26 21-Sep- 26 21-Sep-26 313385G 67 P 20 MATURED PAR VALUE OF F H L B DISC NTS 9/21/26 2,540,000 PAR VALUE AT 100 % - 2,540,000.000 0 100.0 000 ---2,539,185.08 - 2,539,185.08 --SEI Post Date 21-Sep-26 Total ----72,366.26 -5.31 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 21 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep-26 05592XAD 2 BVO5428 I 310 INTEREST EARNED ON BMW VEH OWNER TR 5.46999% 2/25/28 $1 PV ON 670.3500 SHARES DUE 9/25/2026 $0.00456/PV ON 147,060.91 PV DUE 9/25/26 -----670.35 ---SEI 25-Sep- 26 25-Sep-26 3137HDJJ 0 FHL4829B I 310 INTEREST EARNED ON F H L M C MLTCL MTG 4.803% 5/25/29 $1 PV ON 34995.7000 SHARES DUE 9/25/2026 $0.00400/PV ON 8,743,459.95 PV DUE 9/25/26 -----34,995.70 ---SEI 25-Sep- 26 25-Sep-26 3137HQ4U 2 I 310 INTEREST EARNED ON F H L M C MLTCL 4.050% 1/25/31 $1 PV ON 25322.6300 SHARES DUE 9/25/2026 $0.00338/PV ON 7,503,000.00 PV DUE 9/25/26 -----25,322.63 ---SEI 25-Sep- 26 25-Sep-26 31397QRE 0 FNM2841 I 310 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 176.8400 SHARES DUE 9/25/2026 $0.00370/PV ON 47,818.30 PV DUE 9/25/26 -----176.84 ---SEI 25-Sep- 26 25-Sep-26 3137BSRE 5 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 3.120% 9/25/26 $1 PV ON 8379.2200 SHARES DUE 9/25/2026 $0.00260/PV ON 3,222,775.89 PV DUE 9/25/26 -----8,379.22 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 22 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep-26 31394JY35 FHL9543 I 310 INTEREST EARNED ON F H L M C MLTCL MT 6.49999% 9/25/43 $1 PV ON 1305.3500 SHARES DUE 9/25/2026 $0.00542/PV ON 240,987.79 PV DUE 9/25/26 -----1,305.35 ---SEI 25-Sep- 26 25-Sep-26 3137HA4L 7 FHL4631A I 310 INTEREST EARNED ON F H L M C MLTCL MT 4.660% 1/25/31 $1 PV ON 29047.3300 SHARES DUE 9/25/2026 $0.00388/PV ON 7,480,000.00 PV DUE 9/25/26 -----29,047.33 ---SEI 25-Sep- 26 25-Sep-26 3137FG6X 8 FHL3828B I 310 INTEREST EARNED ON F H L M C MLTCL MT 3.850% 5/25/28 $1 PV ON 23260.4100 SHARES DUE 9/25/2026 $0.00321/PV ON 7,250,000.00 PV DUE 9/25/26 -----23,260.41 ---SEI 25-Sep- 26 25-Sep-26 3137HB3D 4 FHL5028 I 310 INTEREST EARNED ON F H L M C MLTCL 5.069% 10/25/28 $1 PV ON 45266.1700 SHARES DUE 9/25/2026 $0.00422/PV ON 10,716,000.00 PV DUE 9/25/26 -----45,266.17 ---SEI 25-Sep- 26 25-Sep-26 3136AJZP 4 I 310 INTEREST EARNED ON F N M A GTD REMIC 1.500% 4/25/29 $1 PV ON 479.0600 SHARES DUE 9/25/2026 $0.00125/PV ON 383,248.32 PV DUE 9/25/26 -----479.06 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 23 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep-26 3137HBPD 0 FHL5429 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 5.400% 1/25/29 $1 PV ON 45000.0000 SHARES DUE 9/25/2026 $0.00450/PV ON 10,000,000.00 PV DUE 9/25/26 -----45,000.00 ---SEI 25-Sep- 26 25-Sep-26 3137HCKV 3 I 310 INTEREST EARNED ON F H L M C MLTCL MTG 5.180% 3/25/29 $1 PV ON 27281.3300 SHARES DUE 9/25/2026 $0.00432/PV ON 6,320,000.00 PV DUE 9/25/26 -----27,281.33 ---SEI 25-Sep- 26 25-Sep-26 3140XQTZ 0 FS8667A I 310 INTEREST EARNED ON F N M A #FS8667 3.000% 10/01/30 $1 PV ON 7379.3700 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----7,379.37 ---SEI 25-Sep- 26 25-Sep-26 31371NUC 7 257179A I 310 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 2.1300 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----2.13 ---SEI 25-Sep- 26 25-Sep-26 31403DJZ 3 745580A I 310 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 99.5300 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----99.53 ---SEI 25-Sep- 26 25-Sep-26 31417YAY 3 MA0022A I 310 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 5.7400 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----5.74 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 24 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep-26 31410F4V 4 888336A I 310 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 167.0000 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----167.00 ---SEI 25-Sep- 26 25-Sep-26 31406XWT 5 823358A I 310 INTEREST EARNED ON F N M A #823358 5.989% 2/01/35 $1 PV ON 27.4700 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----27.47 ---SEI 25-Sep- 26 25-Sep-26 31406PQY 8 815971A I 310 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 130.2800 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----130.28 ---SEI 25-Sep- 26 25-Sep-26 31376KT 22 357969A I 310 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 110.1800 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----110.18 ---SEI 25-Sep- 26 25-Sep-26 3138EG6F 6 AL0869A I 310 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 3.4400 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----3.44 ---SEI 25-Sep- 26 25-Sep-26 31407BXH 7 826080A I 310 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 18.9900 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----18.99 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 25 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep-26 31403GXF 4 748678A I 310 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 1.4600 SHARES DUE 9/25/2026 AUGUST FNMA DUE 9/25/26 -----1.46 ---SEI 25-Sep- 26 25-Sep-26 3137FETN 0 FHL0428B I 310 INTEREST EARNED ON F H L M C MLTCL MT 3.350% 1/25/28 $1 PV ON 23557.7000 SHARES DUE 9/25/2026 $0.00279/PV ON 8,438,579.46 PV DUE 9/25/26 -----23,557.70 ---SEI 25-Sep- 26 25-Sep-26 91282CKW 0 I 300 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 4.250% 6/30/31 ------41,194.97 ---SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 05592XAD 2 BVO5428 P 20 PAID DOWN PAR VALUE OF BMW VEH OWNER TR 5.46999% 2/25/28 -41,878.5400 ----41,878.54 -41,871.12 -7.42 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31394JY35 FHL9543 P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 6.49999% 9/25/43 -2,055.9800 ----2,055.98 -2,328.40 --272.42 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3136AJZP 4 P 20 PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.500% 4/25/29 -18,100.6800 ----18,100.68 -16,535.71 -1,564.97 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137HDJJ 0 FHL4829B P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.803% 5/25/29 -3,792.5100 ----3,792.51 -3,807.92 --15.41 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31397QRE 0 FNM2841 P 20 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -461.9800 ----461.98 -461.84 -0.14 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 26 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep- 26 25-Sep-26 31376KT 22 357969A P 20 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 AUGUST FNMA DUE 9/25/26 -233.4600 ----233.46 -250.97 --17.51 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31406XWT 5 823358A P 20 PAID DOWN PAR VALUE OF F N M A #823358 5.989% 2/01/35 AUGUST FNMA DUE 9/25/26 -45.7600 ----45.76 -45.40 -0.36 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137BSRE 5 P 20 MATURED PAR VALUE OF F H L M C MLTCL MTG 3.120% 9/25/26 3,222,775.89 PAR VALUE AT 100 % - 3,222,775.890 0 100.0 000 ---3,222,775.89 - 3,334,628.16 -- 111,852. 27 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31417YAY 3 MA0022A P 20 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 AUGUST FNMA DUE 9/25/26 -63.7000 ----63.70 -67.37 --3.67 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31406PQY 8 815971A P 20 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 AUGUST FNMA DUE 9/25/26 -1,607.1700 ----1,607.17 -1,727.71 --120.54 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31410F4V 4 888336A P 20 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 AUGUST FNMA DUE 9/25/26 -963.6000 ----963.60 -1,035.87 --72.27 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31403DJZ 3 745580A P 20 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 AUGUST FNMA DUE 9/25/26 -360.3700 ----360.37 -387.40 --27.03 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31371NUC 7 257179A P 20 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 AUGUST FNMA DUE 9/25/26 -34.9300 ----34.93 -36.94 --2.01 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3138EG6F 6 AL0869A P 20 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 AUGUST FNMA DUE 9/25/26 -50.8900 ----50.89 -53.82 --2.93 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 27 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 25-Sep- 26 25-Sep- 26 25-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,654,759.450 0 -----3,654,759.45 3,654,759.45 --SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3140XQTZ 0 FS8667A P 20 PAID DOWN PAR VALUE OF F N M A #FS8667 3.000% 10/01/30 AUGUST FNMA DUE 9/25/26 -113,156.5000 ----113,156.50 -111,529.88 1,626.62 -SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31403GXF 4 748678A P 20 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 AUGUST FNMA DUE 9/25/26 -3.6700 ----3.67 -3.95 --0.28 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31407BXH 7 826080A P 20 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 AUGUST FNMA DUE 9/25/26 -43.8400 ----43.84 -47.13 --3.29 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 3137FETN 0 FHL0428B P 20 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 3.350% 1/25/28 -14,885.9700 ----14,885.97 -14,333.47 -552.50 SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z - 6,314,606.690 0 ----6,314,606.69 - 6,314,606.69 --SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 91282CKW 0 P 10 PURCHASED PAR VALUE OF U S TREASURY NT 4.250% 6/30/31 /BMO- CHICAGO BRANCH/BTEC 4,100,000 PAR VALUE AT 96.65267878 % 4,100,000.000 0 96.65 27 ----3,962,759.83 3,962,759.83 --SEI 25-Sep- 26 25-Sep- 26 25-Sep-26 912797WL 7 P 10 PURCHASED PAR VALUE OF U S TREASURY BILL 3/25/27 /MIZUHO SECURITIES USA INC./2,400,000 PAR VALUE AT 97.87898167 % 2,400,000.000 0 97.87 90 ----2,349,095.56 2,349,095.56 --SEI Post Date 25-Sep-26 Total ----122,855.09 1,626.62 - 110,264. 24 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 28 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 28-Sep- 26 28-Sep- 26 28-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -401,416.7400 ----401,416.74 -401,416.74 --SEI 28-Sep- 26 28-Sep- 26 28-Sep-26 912797WL 7 P 10 PURCHASED PAR VALUE OF U S TREASURY BILL 3/25/27 /WELLS FARGO SECURITIES, LLC/410,000 PAR VALUE AT 97.90652195 % 410,000.0000 97.90 65 ----401,416.74 401,416.74 --SEI Post Date 28-Sep-26 Total -------SEI 30-Sep- 26 30-Sep-26 06051GHG 7 I 301 RECEIVED ACCRUED INTEREST ON SALE OF BANK OF AMERICA MTN 3.970% 3/05/29 -----1,378.47 ---SEI 30-Sep- 26 30-Sep-26 46647PEU 6 I 301 RECEIVED ACCRUED INTEREST ON SALE OF JPMORGAN CHASE CO 4.915% 1/24/29 -----6,532.85 ---SEI 30-Sep- 26 30-Sep-26 24422EYL 7 I 301 RECEIVED ACCRUED INTEREST ON SALE OF JOHN DEERE MTN 4.200% 3/10/31 -----1,283.33 ---SEI 30-Sep- 26 30-Sep-26 53359KAE 1 I 301 RECEIVED ACCRUED INTEREST ON SALE OF LINCOLN FINL MTN 4.950% 5/21/31 -----10,199.06 ---SEI 30-Sep- 26 30-Sep-26 61744YAP 3 I 301 RECEIVED ACCRUED INTEREST ON SALE OF MORGAN STANLEY MTN 3.772% 1/24/29 -----2,524.10 ---SEI 30-Sep- 26 30-Sep-26 61747YFP 5 MSM5428 I 301 RECEIVED ACCRUED INTEREST ON SALE OF MORGAN STANLEY MTN 5.652% 4/13/28 -----28,840.90 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 29 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 30-Sep-26 00138CBD 9 I 301 RECEIVED ACCRUED INTEREST ON SALE OF AIG GLOBAL FDG MTN 4.900% 1/07/28 -----6,495.90 ---SEI 30-Sep- 26 30-Sep-26 45865VAD 2 I 301 RECEIVED ACCRUED INTEREST ON SALE OF INTERCONTINENTAL 4.700% 8/20/29 -----3,525.00 ---SEI 30-Sep- 26 30-Sep-26 637639AT 2 I 301 RECEIVED ACCRUED INTEREST ON SALE OF NATIONAL SECS 4.700% 6/09/31 -----10,506.46 ---SEI 30-Sep- 26 30-Sep-26 06051GJB 6 I 301 RECEIVED ACCRUED INTEREST ON SALE OF BANK AMER CORP MTN 2.592% 4/29/31 -----2,174.40 ---SEI 30-Sep- 26 30-Sep-26 89788JAJ8 I 301 RECEIVED ACCRUED INTEREST ON SALE OF TRUIST BK SR MTN 4.800% 1/27/29 -----5,076.40 ---SEI 30-Sep- 26 30-Sep-26 025816EN 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF AMERICAN EXPRESS 4.009% 2/09/29 -----4,117.58 ---SEI 30-Sep- 26 30-Sep-26 023135DD 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF AMAZON COM INC 4.250% 3/13/31 -----1,103.82 ---SEI 30-Sep- 26 30-Sep-26 06051GMK 2 I 301 RECEIVED ACCRUED INTEREST ON SALE OF BANK OF AMERICA 4.979% 1/24/29 -----3,194.86 ---SEI 30-Sep- 26 30-Sep-26 66989HAY 4 I 301 RECEIVED ACCRUED INTEREST ON SALE OF NOVARTIS CAPITAL 4.100% 11/05/30 -----7,431.25 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 30 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 30-Sep-26 693475CG 8 I 301 RECEIVED ACCRUED INTEREST ON SALE OF PNC FINL SVCS GROUP 4.075% 1/26/29 -----7,787.78 ---SEI 30-Sep- 26 30-Sep-26 02079KCN 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF ALPHABET INC SR 4.625% 8/10/29 -----3,532.99 ---SEI 30-Sep- 26 30-Sep-26 369604BZ 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF GE AEROSPACE 4.300% 7/29/30 -----2,185.83 ---SEI 30-Sep- 26 30-Sep-26 91282CPR 6 I 301 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 3.625% 12/31/30 -----117,812.50 ---SEI 30-Sep- 26 30-Sep-26 26884TAY 8 I 301 RECEIVED ACCRUED INTEREST ON SALE OF ERAC USA FINANCE 5.000% 2/15/29 -----5,000.00 ---SEI 30-Sep- 26 30-Sep-26 46647PAM 8 I 301 RECEIVED ACCRUED INTEREST ON SALE OF JPMORGAN CHASE CO 3.509% 1/23/29 -----5,224.51 ---SEI 30-Sep- 26 30-Sep-26 210518DX 1 I 301 RECEIVED ACCRUED INTEREST ON SALE OF CONSUMERS ENERGY CO 4.700% 1/15/30 -----7,098.96 ---SEI 30-Sep- 26 30-Sep-26 95040QAH 7 I 301 RECEIVED ACCRUED INTEREST ON SALE OF WELLTOWER INC 4.125% 3/15/29 -----730.47 ---SEI 30-Sep- 26 30-Sep-26 46647PFL 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF JPMORGAN CHASE CO 4.408% 4/23/30 -----16,340.21 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 31 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 30-Sep-26 756109BS 2 I 301 RECEIVED ACCRUED INTEREST ON SALE OF REALTY INCOME CORP 4.700% 12/15/28 -----8,567.71 ---SEI 30-Sep- 26 30-Sep-26 883556DG 4 I 301 RECEIVED ACCRUED INTEREST ON SALE OF THERMO FISHER 4.215% 2/12/31 -----3,091.00 ---SEI 30-Sep- 26 30-Sep-26 17325FBK 3 I 301 RECEIVED ACCRUED INTEREST ON SALE OF CITIBANK N A 4.838% 8/06/29 -----6,168.45 ---SEI 30-Sep- 26 30-Sep-26 91282CJQ 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 3.750% 12/31/30 -----39,609.38 ---SEI 30-Sep- 26 30-Sep-26 023135EC 6 I 301 RECEIVED ACCRUED INTEREST ON SALE OF AMAZON COM INC 4.800% 7/09/31 -----5,670.00 ---SEI 30-Sep- 26 30-Sep-26 06051GMY 2 I 301 RECEIVED ACCRUED INTEREST ON SALE OF BANK OF AMER MTN 4.477% 4/23/30 -----15,619.76 ---SEI 30-Sep- 26 30-Sep-26 693475BR 5 I 301 RECEIVED ACCRUED INTEREST ON SALE OF PNC FINL SVCS GROUP 5.582% 6/12/29 -----15,071.40 ---SEI 30-Sep- 26 30-Sep-26 91282CPA 3 I 310 INTEREST EARNED ON U S TREASURY NT 3.625% 9/30/30 $1 PV ON 4875000.0000 SHARES DUE 9/30/2026 -----88,359.38 ---SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 32 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 30-Sep-26 91282CKF 7 I 310 INTEREST EARNED ON U S TREASURY NT 4.125% 3/31/31 $1 PV ON 8425000.0000 SHARES DUE 9/30/2026 -----173,765.63 ---SEI 30-Sep- 26 30-Sep-26 91282CGS 4 UST0030 I 310 INTEREST EARNED ON U S TREASURY NT 3.625% 3/31/30 $1 PV ON 5200000.0000 SHARES DUE 9/30/2026 -----94,250.00 ---SEI 30-Sep- 26 30-Sep-26 P 210 CASH DISBURSEMENT PAID TO ORANGE COUNTY SANITATION DISTRICT OUTGOING DOMESTIC WIRE TRANSFER FROM LONG TERM PORTFOLIO ------ 42,000,000.00 ---SEI 30-Sep- 26 30-Sep-26 3137FETN 0 FHL0428B I 301 RECEIVED ACCRUED INTEREST ON SALE OF F H L M C MLTCL MT 3.350% 1/25/28 -----22,732.27 ---SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 91282CJQ 5 P 20 SOLD PAR VALUE OF U S TREASURY NT 3.750% 12/31/30 /WELLS FARGO SECURITIES, LLC/BTEC 4,225,000 PAR VALUE AT 95.08950864 % - 4,225,000.000 0 95.08 95 ---4,017,531.74 - 4,267,580.08 - 250,048.3 4 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 17325FBK 3 P 20 SOLD PAR VALUE OF CITIBANK N A 4.838% 8/06/29 /GOLDMAN SACHS & CO. LLC/XOTC 850,000 PAR VALUE AT 98.633 % -850,000.0000 98.63 30 ---838,380.50 -850,195.50 -- 11,815.0 0 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 33 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 29-Sep- 26 30-Sep-26 693475BR 5 P 20 SOLD PAR VALUE OF PNC FINL SVCS GROUP 5.582% 6/12/29 /GOLDMAN SACHS & CO. LLC/900,000 PAR VALUE AT 100.351 % -900,000.0000 100.3 510 ---903,159.00 -922,293.00 -- 19,134.0 0 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 00138CBD 9 P 20 SOLD PAR VALUE OF AIG GLOBAL FDG MTN 4.900% 1/07/28 /GOLDMAN SACHS & CO. LLC/575,000 PAR VALUE AT 99.54 % -575,000.0000 99.54 00 ---572,355.00 -575,000.00 -- 2,645.00 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 693475CG 8 P 20 SOLD PAR VALUE OF PNC FINL SVCS GROUP 4.075% 1/26/29 /GOLDMAN SACHS & CO. LLC/1,075,000 PAR VALUE AT 98.601 % - 1,075,000.000 0 98.60 10 ---1,059,960.75 - 1,075,903.00 -15,942.25 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 02079KCN 5 P 20 SOLD PAR VALUE OF ALPHABET INC SR 4.625% 8/10/29 /GOLDMAN SACHS & CO. LLC/550,000 PAR VALUE AT 98.317 % -550,000.0000 98.31 70 ---540,743.50 -548,339.00 -7,595.50 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 46647PEU 6 P 20 SOLD PAR VALUE OF JPMORGAN CHASE CO 4.915% 1/24/29 /GOLDMAN SACHS & CO. LLC/725,000 PAR VALUE AT 99.646 % -725,000.0000 99.64 60 ---722,433.50 -725,000.00 -- 2,566.50 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 53359KAE 1 P 20 SOLD PAR VALUE OF LINCOLN FINL MTN 4.950% 5/21/31 /GOLDMAN SACHS & CO. LLC/575,000 PAR VALUE AT 95.598 % -575,000.0000 95.59 80 ---549,688.50 -573,568.25 -23,879.75 -SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 34 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 29-Sep- 26 30-Sep-26 06051GMY 2 P 20 SOLD PAR VALUE OF BANK OF AMER MTN 4.477% 4/23/30 /GOLDMAN SACHS & CO. LLC/800,000 PAR VALUE AT 97.291 % -800,000.0000 97.29 10 ---778,328.00 -800,000.00 -21,672.00 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 66989HAY 4 P 20 SOLD PAR VALUE OF NOVARTIS CAPITAL 4.100% 11/05/30 /GOLDMAN SACHS & CO. LLC/450,000 PAR VALUE AT 95.02 % -450,000.0000 95.02 00 ---427,590.00 -448,650.00 -21,060.00 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 883556DG 4 P 20 SOLD PAR VALUE OF THERMO FISHER 4.215% 2/12/31 /GOLDMAN SACHS & CO. LLC/550,000 PAR VALUE AT 94.872 % -550,000.0000 94.87 20 ---521,796.00 -550,000.00 -28,204.00 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 45865VAD 2 P 20 SOLD PAR VALUE OF INTERCONTINENTAL 4.700% 8/20/29 /GOLDMAN SACHS & CO. LLC/675,000 PAR VALUE AT 98.033 % -675,000.0000 98.03 30 ---661,722.75 -673,211.25 -11,488.50 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 46647PAM 8 P 20 SOLD PAR VALUE OF JPMORGAN CHASE CO 3.509% 1/23/29 /GOLDMAN SACHS & CO. LLC/800,000 PAR VALUE AT 97.762 % -800,000.0000 97.76 20 ---782,096.00 -757,904.00 -24,192.0 0 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 89788JAJ8 P 20 SOLD PAR VALUE OF TRUIST BK SR MTN 4.800% 1/27/29 /GOLDMAN SACHS & CO. LLC/700,000 PAR VALUE AT 98.506 % -700,000.0000 98.50 60 ---689,542.00 -700,161.00 -10,619.00 -SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 35 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 29-Sep- 26 30-Sep-26 26884TAY 8 P 20 SOLD PAR VALUE OF ERAC USA FINANCE 5.000% 2/15/29 /GOLDMAN SACHS & CO. LLC/800,000 PAR VALUE AT 99.063 % -800,000.0000 99.06 30 ---792,504.00 -802,464.00 -- 9,960.00 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 61744YAP 3 P 20 SOLD PAR VALUE OF MORGAN STANLEY MTN 3.772% 1/24/29 /GOLDMAN SACHS & CO. LLC/365,000 PAR VALUE AT 98.085 % -365,000.0000 98.08 50 ---358,010.25 -356,064.80 -1,945.45 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 24422EYL 7 P 20 SOLD PAR VALUE OF JOHN DEERE MTN 4.200% 3/10/31 /GOLDMAN SACHS & CO. LLC/550,000 PAR VALUE AT 94.868 % -550,000.0000 94.86 80 ---521,774.00 -550,517.00 -28,743.00 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 023135EC 6 P 20 SOLD PAR VALUE OF AMAZON COM INC 4.800% 7/09/31 /GOLDMAN SACHS & CO. LLC/525,000 PAR VALUE AT 96.688 % -525,000.0000 96.68 80 ---507,612.00 -524,333.25 -16,721.25 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 369604BZ 5 P 20 SOLD PAR VALUE OF GE AEROSPACE 4.300% 7/29/30 /GOLDMAN SACHS & CO. LLC/300,000 PAR VALUE AT 95.982 % -300,000.0000 95.98 20 ---287,946.00 -299,400.00 -- 11,454.0 0 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 756109BS 2 P 20 SOLD PAR VALUE OF REALTY INCOME CORP 4.700% 12/15/28 /GOLDMAN SACHS & CO. LLC/625,000 PAR VALUE AT 98.723 % -625,000.0000 98.72 30 ---617,018.75 -621,412.50 -- 4,393.75 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 36 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 29-Sep- 26 30-Sep-26 46647PFL 5 P 20 SOLD PAR VALUE OF JPMORGAN CHASE CO 4.408% 4/23/30 /GOLDMAN SACHS & CO. LLC/850,000 PAR VALUE AT 97.198 % -850,000.0000 97.19 80 ---826,183.00 -850,000.00 -23,817.00 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 61747YFP 5 MSM5428 P 20 SOLD PAR VALUE OF MORGAN STANLEY MTN 5.652% 4/13/28 /GOLDMAN SACHS & CO. LLC/1,100,000 PAR VALUE AT 100.317 % - 1,100,000.000 0 100.3 170 ---1,103,487.00 - 1,100,396.00 -3,091.00 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 91282CPR 6 P 20 SOLD PAR VALUE OF U S TREASURY NT 3.625% 12/31/30 /GOLDMAN SACHS & CO. LLC/13,000,000 PAR VALUE AT 94.60156254 % - 13,000,000.00 00 94.60 16 ---12,298,203.13 - 12,921,811.1 0 - 623,607.9 7 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 025816EN 5 P 20 SOLD PAR VALUE OF AMERICAN EXPRESS 4.009% 2/09/29 /GOLDMAN SACHS & CO. LLC/725,000 PAR VALUE AT 98.417 % -725,000.0000 98.41 70 ---713,523.25 -725,000.00 -11,476.75 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 06051GJB 6 P 20 SOLD PAR VALUE OF BANK AMER CORP MTN 2.592% 4/29/31 /GOLDMAN SACHS & CO. LLC/200,000 PAR VALUE AT 89.839 % -200,000.0000 89.83 90 ---179,678.00 -184,196.00 -4,518.00 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 210518DX 1 P 20 SOLD PAR VALUE OF CONSUMERS ENERGY CO 4.700% 1/15/30 /GOLDMAN SACHS & CO. LLC/XOTC 725,000 PAR VALUE AT 97.713 % -725,000.0000 97.71 30 ---708,419.25 -716,967.00 -- 8,547.75 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 37 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 29-Sep- 26 30-Sep-26 95040QAH 7 P 20 SOLD PAR VALUE OF WELLTOWER INC 4.125% 3/15/29 /GOLDMAN SACHS & CO. LLC/425,000 PAR VALUE AT 97.106 % -425,000.0000 97.10 60 ---412,700.50 -420,941.25 -- 8,240.75 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 06051GMK 2 P 20 SOLD PAR VALUE OF BANK OF AMERICA 4.979% 1/24/29 /GOLDMAN SACHS & CO. LLC/350,000 PAR VALUE AT 99.66 % -350,000.0000 99.66 00 ---348,810.00 -350,000.00 -- 1,190.00 SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 023135DD 5 P 20 SOLD PAR VALUE OF AMAZON COM INC 4.250% 3/13/31 /GOLDMAN SACHS & CO. LLC/550,000 PAR VALUE AT 94.753 % -550,000.0000 94.75 30 ---521,141.50 -549,120.00 -27,978.50 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 637639AT 2 P 20 SOLD PAR VALUE OF NATIONAL SECS 4.700% 6/09/31 /GOLDMAN SACHS & CO. LLC/725,000 PAR VALUE AT 96.647 % -725,000.0000 96.64 70 ---700,690.75 -724,775.25 -24,084.50 -SEI 30-Sep- 26 29-Sep- 26 30-Sep-26 06051GHG 7 P 20 SOLD PAR VALUE OF BANK OF AMERICA MTN 3.970% 3/05/29 /GOLDMAN SACHS & CO. LLC/500,000 PAR VALUE AT 98.197 % -500,000.0000 98.19 70 ---490,985.00 -478,375.00 -12,610.0 0 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 38 of 39 Multiple Accounts Begin Date : 09/01/2026 End Date : 09/30/2026 Account Information Account Number Account Name OCSD LONG-TERM PORTFOLIO Transactions Post Date Trade Date Settlement Date CUSIP Ticker SEDOL Port P/I Tran Type Explanation Units Price Comm SEC Fee Misc Fee Net Cash Amount Cost Short Term Gain/Loss Long Term Gain Loss Source System 30-Sep- 26 29-Sep- 26 30-Sep-26 3137FETN 0 FHL0428B P 20 SOLD PAR VALUE OF F H L M C MLTCL MT 3.350% 1/25/28 /TD SECURITIES (USA) LLC/8,423,693.49 PAR VALUE AT 98.06640638 % - 8,423,693.490 0 98.06 64 ---8,260,813.49 - 8,111,047.15 -149,766. 34 SEI 30-Sep- 26 30-Sep- 26 30-Sep-26 31846V567 FGZXX P 10 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 35,164,283.96 00 ----- 35,164,283.96 35,164,283.9 6 --SEI 30-Sep- 26 30-Sep- 26 30-Sep-26 31846V567 FGZXX P 20 SOLD UNITS OF FIRST AM GOVT OB FD CL Z - 35,166,379.65 00 ----35,166,379.65 - 35,166,379.6 5 --SEI 30-Sep- 26 30-Sep- 26 30-Sep-26 912797WL 7 P 10 PURCHASED PAR VALUE OF U S TREASURY BILL 3/25/27 /BOFA SECURITIES, INC./FXD INC/1,480,000 PAR VALUE AT 97.96793311 % 1,480,000.000 0 97.96 79 ----1,449,925.41 1,449,925.41 --SEI Post Date 30-Sep-26 Total ----- 42,306,795.6 6 - 1,151,456. 31 111,658. 04 SEI Account 6745046601 Total ----- 41,230,217.5 6 - 1,149,986. 50 369.31 SEI Account Ending Cash Principal Cash: - 130,217,652.97 Income Cash: 130,217,652.97 Total Cash: - Grand Total ----- 42,098,444.1 4 - 1,139,747. 00 369.31 SEI TRANSACTIONS - SUMMARY Run Date : 10/01/2026 Page 39 of 39 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5123 Agenda Date:10/28/2026 Agenda Item No:5. FROM:Robert Thompson, General Manager Originator: Riaz Moinuddin, Director of Operations & Maintenance SUBJECT: PLANT NO. 2 ALFA LAVAL INC. MAINTENANCE SERVICE AGREEMENT FOR CENTRIFUGES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a sole source purchase order to Alfa Laval Inc., for major service overhauls of six centrifuges at Plant No. 2 over a two-year period, for a total amount not to exceed $268,718; and B. Approve an allowance of $120,000. BACKGROUND The Orange County Sanitation District’s (OC San’s)Plant No.2 Five Alfa Laval Model ALDEC G3- 125 dewatering centrifuge trains were installed and commissioned under project P2-92 to improve sludge dewatering and odor control.A spare sixth unit was also provided.The centrifuges replaced the previous belt filter press system,resulting in higher cake solids,reduced biosolids hauling volumes, improved odor control, and lower operating costs. RELEVANT STANDARDS ·24/7/365 Treatment plant reliability ·Comply with environmental permit requirements ·Maintain a proactive asset management program ·Safe, beneficial reuse of biosolids PROBLEM The centrifuges have been in operation since 2019 and have exceeded the Original Equipment Manufacturer (OEM)recommended interval for a major overhaul.To maintain equipment reliability and ensure continued high-speed operation,each centrifuge requires a major overhaul,including a thorough inspection, replacement of worn components, and rebalancing. Orange County Sanitation District Printed on 10/15/2026Page 1 of 2 powered by Legistar™ File #:2026-5123 Agenda Date:10/28/2026 Agenda Item No:5. PROPOSED SOLUTION The recommendation is to establish a service agreement with the OEM service provider Alafa Laval Inc., for major overhauls and field services for six centrifuges. TIMING CONCERNS OC San does not currently have an active service agreement.The centrifuges are past the manufacturer’s recommended major overhaul interval.Further delaying these major overhauls will potentially increase the risk of catastrophic equipment failure,extended process interruptions,or costly emergency repairs. RAMIFICATIONS OF NOT TAKING ACTION If the critical equipment continues to operate without the OEM-recommended major overhauls,the centrifuges may experience reduced reliability and efficiency,as well as unplanned failures.These conditions could result in process interruptions and increase the risk of noncompliance with permit and regulatory requirements. PRIOR COMMITTEE/BOARD ACTIONS February 2020 -The Board of Directors approved Alfa Laval Inc.services to the established OEM Sole Source Board Approval List for parts and repairs of the Centrifuge rotating assembly. ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS The request complies with authority levels of OC San’s Purchasing Ordinance.This item is budgeted for the (Budget Fiscal Year 2026-27 and 2027-28,Section 6,Operations &Maintenance,Line item: Repairs & Maintenance, Page 128) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Allowance 10/28/2026 $268,718 $120,000 ATTACHMENT The following attachment(s)may be viewed online at the OC San website (www.ocsan.gov)with the complete agenda package: N/A AT:mm Orange County Sanitation District Printed on 10/15/2026Page 2 of 2 powered by Legistar™ OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5124 Agenda Date:10/28/2026 Agenda Item No:6. FROM:Robert Thompson, General Manager Originator: Riaz Moinuddin, Director of Operations & Maintenance SUBJECT: REPLACEMENT MOBILE TELESCOPIC BOOM CRANE (9-TON) GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a purchase order to Western Pacific Crane & Equipment for the purchase of one Mobile Telescopic Boom Crane (9-Ton) using the Equalis Cooperative Contract No. COG- 2149B for an amount not to exceed $267,007; and, B. Approve a contingency of $26,700 (10%). BACKGROUND Orange County Sanitation District (OC San)utilizes an off-road mobile telescopic boom crane (9-Ton) within the treatment plants to support the hoisting and lifting needs of equipment maintenance in all types of terrain.Certified crane operators operate this off-road specialty equipment to move equipment and parts around the treatment plants where access is required.The crane is used to lift and position pumps,motors,valves,gates,and other heavy equipment associated with maintenance activities.It also provides critical emergency-response capability,including the installation and removal of flow-management gates.The unit can be transported between OC San facilities as operational and maintenance needs arise. RELEVANT STANDARDS ·Participate in local, state, and national cooperative purchasing programs ·Ensure the public’s money is wisely spent ·Commitment to safety & reducing risk in all operations PROBLEM OC San has one off-road mobile telescopic boom crane (9-ton)available to support equipment maintenance and emergency response at both treatment plants and pump stations.The existing crane is 26 years old and has reached an age where replacement is necessary to maintain reliable equipment availability.The crane is specifically designed to operate within OC San facilities where short headroom,narrow access areas,challenging terrain,and ongoing construction limit the use of conventional lifting equipment.Continued reliance on the aging crane increases the risk ofOrange County Sanitation District Printed on 10/15/2026Page 1 of 3 powered by Legistar™ File #:2026-5124 Agenda Date:10/28/2026 Agenda Item No:6. conventional lifting equipment.Continued reliance on the aging crane increases the risk of equipment unavailability,which could delay critical maintenance work and emergency response activities. PROPOSED SOLUTION Replace the existing 26-year-old mobile telescopic boom crane (9-ton)with a new unit to maintain reliable lifting capability for planned and corrective maintenance activities,project support,and emergency response at OC San treatment plants and pump stations. TIMING CONCERNS Timely replacement of the existing crane will ensure reliable crane availability,which supports the efficient completion of maintenance work orders.Delaying replacement could result in reduced equipment availability and interruptions to maintenance activities. RAMIFICATIONS OF NOT TAKING ACTION If the existing crane is unavailable,OC San may need to delay maintenance work or hire a contractor, which is subject to availability, site access, and response time. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION OC San utilizes a cooperative agreement through,Equalis Cooperative Contract No.COG-2149B,in accordance with Ordinance No. OCSD-61, Section 2.03 (B), Cooperative Purchases. A 10% contingency is requested to adjust for market volatility price changes. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Approved Budget FY 2026-27 and FY 2027-28,Section 8,Page 86,Fleet Services - Mobile Crane 9-ton Replacement,along with a transfer from the Front-End Loader,Articulating Replacement,which will not be purchased this year)and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency 10/28/2026 $267,007 $26,700 (10%) Orange County Sanitation District Printed on 10/15/2026Page 2 of 3 powered by Legistar™ File #:2026-5124 Agenda Date:10/28/2026 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 10/15/2026Page 3 of 3 powered by Legistar™ OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5125 Agenda Date:10/28/2026 Agenda Item No:7. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: CITY OF NEWPORT BEACH ENCROACHMENT AGREEMENT AT 4147 MACARTHUR BOULEVARD..end GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve the execution of an Encroachment Agreement with the City of Newport Beach for the installation of electrical improvements located at 4141 MacArthur Boulevard, Newport Beach, California, in a form approved by General Counsel; and B. The Clerk of the Board is hereby authorized and directed to record said Agreement in the official records of the Orange County Clerk-Recorder’s Office. BACKGROUND The City of Newport Beach is implementing its FY 2024-25 Streetlight Improvement Project,which includes removing and replacing 22 streetlight electrical service cabinets throughout the city.The project also includes installing new electrical wiring,pull boxes,concrete pads,pavement and sidewalk restoration,and coordinating with Southern California Edison for associated electrical improvements. Some of the proposed work is located within an existing Orange County Sanitation District (OC San) easement,including the installation of a new service cabinet,pull box,conduit and conductors,and the abandonment of an existing service cabinet and conduit. RELEVANT STANDARDS ·Protect OC San assets ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities ·Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting Orange County Sanitation District Printed on 10/15/2026Page 1 of 2 powered by Legistar™ File #:2026-5125 Agenda Date:10/28/2026 Agenda Item No:7. PROBLEM Without an Encroachment Agreement,OC San does not have a formal mechanism to document or control the installation of the proposed electrical facilities within the affected area.Installing improvements without established terms and conditions could interfere with OC San’s existing infrastructure, access, maintenance activities, or future operational needs. PROPOSED SOLUTION Approve the execution of an Encroachment Agreement with the City of Newport Beach. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION OC San will not formally approve the installation of the proposed electrical facilities within the affected area or establish the conditions under which those facilities may remain.This could result in improvements being installed without OC San’s documented approval and without provisions to protect OC San’s existing infrastructure, access, and future operational needs. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The improvements associated with this Encroachment Agreement have been coordinated between the City of Newport Beach and OC San to ensure that OC San’s existing facilities are not impacted and electrical service to the MacArthur Pump Station is not affected by this work. CEQA 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: ·Encroachment Agreement Orange County Sanitation District Printed on 10/15/2026Page 2 of 2 powered by Legistar™ 55880.00700\45189603.2 Page 1 of 10 0BRECORDING REQUESTED BY AND WHEN RECORDED, MAIL TO: Orange County Sanitation District Attn: Kelly Lore, Clerk of the Board 18480 Bandilier Circle Fountain Valley, CA 92708 1BSPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY Documentary Transfer Tax Exempt Under Revenue and Taxation Code Section 11922 Recording Fee Exempt Under Government Code Section 27383 ENCROACHMENT AGREEMENT Date:_______ Easement and Right-of-Way Owner (as Permittor or “OC San”): ORANGE COUNTY SANITATION DISTRICT, A CALIFORNIA SPECIAL DISTRICT Name of Property Owner(s) (“Permittee”): City of Newport Beach OC SAN and Permittee enter into this Encroachment Agreement as of the date indicated above for the property described below and pursuant to the terms and conditions provided as follows: Assessor’s Parcel Number(s) of Property: 427-181-12 Street Address of Property (“Property”): 4141 MacArthur Boulevard, Newport Beach, CA 92662 Description of Encroachment(s) (“Encroachment”): Construction and installation of a new service cabinet, pull box, conduit and conductors, and abandonment of an existing conduit. Connection will be established to an existing Edison transformer # UG-5107935/ UG-5107936. Location of Encroachment(s) (“Affected Property”): Across OC San’s easement as granted to OC San under that certain Grant of Easement. See depiction attached in Exhibit A. Deposit Amount (“Deposit”) (if required): N/A Form of Financial Responsibility (if required): Provide a copy of commercial general liability insurance policy with this Agreement. Minimum Limits of Liability Insurance required: Permittee shall obtain and maintain insurance in forms and amounts required herein. A minimum of not less than One Million dollars ($1,000,000) bodily injury and property damage must be maintained at all times. 1. Agreement Terms and Conditions: The Orange County Sanitation District (“OC San”) Agreement (Permittee to construct, maintain, use, repair, replace and operate the 55880.00700\45189603.2 Page 2 of 10 Encroachment on the Affected Property as expressly described in this Encroachment Agreement (“Agreement”) and subject to all terms and conditions contained herein. 2. OC San’s Interest in the Property: Permittee desires to maintain, use, and operate the Encroachment on the Affected Property. The Affected Property is owned in fee or easement by OC San for, among other purposes, the operation and maintenance of its sewer line. OC San is willing to allow the Encroachment to remain on the Affected Property subject to all the terms of this Agreement and to the Grant of Easement. 3. Maintenance of Encroachment: The Encroachment shall remain the personal property of the Permittee and OC San shall have no obligation to monitor the use of, or to maintain, the Encroachment. The Permittee specifically acknowledges and agrees that the rights granted to the Permittee under this Agreement impose a duty on the Permittee to OC San and the general public to maintain the Encroachment and the Affected Property in a safe condition. The Permittee, therefore, agrees to keep and maintain the Encroachment and the Affected Property in good order and repair at the Permittee’s sole cost and expense and subject the obligations of OC San under the Grant of Easement and to the following conditions: a. No Notice Required – Permittee’s duty to keep, maintain, and repair the Encroachment and the Affected Property shall be exercised and performed without regard to whether OC San has notified the Permittee of the need for such repairs or maintenance or whether OC San has performed repairs or maintenance of the Encroachment or the Affected Property in the past. b. Failure to Maintain – Permittee’s failure to comply with the requirements and obligations of this Paragraph, or the performance of such obligations in a negligent manner, shall constitute a material breach of this Agreement and shall further constitute negligence and shall make the Permittee fully liable to the general public, any private party, or OC San if the Permittee’s negligence under this paragraph is a proximate cause of any injury or damage. c. Breach - Permittee’s failure to comply with the requirements and obligations of this Paragraph within fourteen (14) days after receiving written notice from OC San shall constitute a material breach of this Agreement. In the event of such a breach, OC San may, but is not obligated to, pursue either of the following courses of action: i. Enter the Affected Property to conduct reasonable maintenance, the costs of which shall be Permittee’s sole responsibility. Permittee hereby authorizes OC San to record a lien against the Affected Property if Permittee fails to deliver payment within fourteen (14) days after receiving a request for repayment from OC San. ii. Terminate this Agreement subject to the provisions of Paragraph 6 below. This may include, but is not limited to, removal of all Encroachments on the Affected Property at Permittee’s sole cost and expense. 4. Other Approvals: Permittee shall obtain all necessary authorizations and permits from appropriate municipalities and agencies before installing, constructing, or modifying the Encroachment. Permittee shall maintain the Encroachment in strict compliance with the 55880.00700\45189603.2 Page 3 of 10 terms and conditions of (i) this Agreement, and (ii) all other permits or authorizations necessary to construct, maintain, or operate the Encroachment. 5. No Expansion or Relocation: Permittee shall not expand, intensify, increase, or in any way modify the Encroachment without first securing a new or amended encroachment permit, an amendment to this Agreement, or a new encroachment agreement from OC San. Except as expressly permitted by this Agreement, Permittee shall immediately remove, and refrain from subsequently reinstalling or reconstructing, all improvements, structures, or equipment located on the Affected Property. 6. Termination: The rights granted under the Agreement may be terminated by the OC San at any time for any reason or no reason by giving thirty (30) days written notice to Permittee at Permittee’s last known address, specifying in said notice the date of termination. In the event OC San determines that the Encroachment is an immediate risk to the public health or safety, or that the Encroachment interferes with a need by the OC San for emergency access which is required to maintain or repair OC San’s facilities within the Affected Property, the rights granted under this Agreement may be terminated immediately and without prior notice. In such an event, OC San shall provide Permittee with written notice of the basis for the termination within ten (10) business days after the termination. Nothing in this Paragraph shall be construed as limiting the ability of OC San to maintain, remove, repair, renew, replace, or enlarge public improvements in the Affected Property, as provided in Paragraph 7 of this Agreement. Upon termination of the rights provided under this Agreement, OC San shall refund any unused portion of the Deposit, if required. 7. OC San Access: In the event OC San should be required to enter the Affected Property to exercise its primary rights associated with the Affected Property, including but not limited to the maintenance, removal, repair, renewal, replacement, or enlargement of existing or future sewer facilities, OC San may remove all or portions of the Encroachments as required. Under such circumstances, OC San shall provide written notice to the Permittee of OC San’s intent to accomplish such work. Upon receiving at least 24-hour notice from OC San, the Permittee shall remove the Encroachment by the deadline specified in the notice and refrain from replacing or reinstalling the Encroachment until OC San’s work is complete, and OC San shall notify Permittee upon completion of such work. Advance notice of any work OC San reasonably believes is necessary to resolve an emergency situation is not required under this Agreement. The Permittee shall be responsible for and pay all costs necessary to arrange for the removal of the Encroachment, if required, and for the costs of the renewal, replacement, or restoration of the Affected Property upon the Permittee’s removal of the Encroachment. In the event of an emergency situation or if the Permittee refuses or fails to remove the Encroachment or otherwise perform any of the Permittee’s obligations under this Agreement, then the Permittee shall reimburse OC San for any actual, out-of-pocket, reasonable, documented costs OC San incurs in removing the Encroachment and/or renewing, replacing, or restoring the Affected Property, and in partial satisfaction of the Permittee’s obligation, OC San may withdraw funds from the Deposit, if any, and apply the same to amounts owed by the Permittee hereunder. 8. Breach: In the event Permittee breaches any material provision of this Agreement, OC San may terminate this Agreement as provided in Paragraph 6 of this Agreement. If OC San elects to terminate this Agreement due to Permittee’s breach, Permittee shall, at Permittee’s sole cost and expense, immediately cause the Encroachment to be removed and the 55880.00700\45189603.2 Page 4 of 10 Affected Property appropriately renewed, replaced, or restored. In the event Permittee refuses or fails to remove the Encroachment or otherwise perform any of Permittee’s obligations under this Paragraph, then the Permittee shall promptly reimburse OC San for any costs may incur in removing the Encroachment, or any portion thereof, and/or renewing, replacing, or restoring the Affected Property. OC San may withdraw funds from the Deposit, if any, in partial satisfaction of Permittee’s obligation under this Paragraph. The rights of OC San under this Paragraph are in addition to any and all rights OC San may have under Paragraphs 9 and 10 of this Agreement. OC San shall not be responsible for any damages to the Permittee as a result of OC San performing any work under the provisions off this Agreement, including, but not limited, to, damages. 9. Default: In the event of a default by either party to this Agreement, the non-defaulting party shall have available all remedies at law or equity. Such remedies shall be cumulative and not exclusive of one another, and the exercise of any one or more of said remedies shall not constitute a waiver or election with respect to any other available remedy. 10. OC San Indemnification: Permittee agrees to and shall indemnify, defend, and hold OC San, and OC San’s officers, agents, employees, and representatives, harmless from and against any and all loss, damage, liability, claims, suits, costs, and expenses whatsoever, including reasonable attorneys’ fees, regardless of the merit or outcome of any such claim or suit arising from or in any manner connected with installation, construction, maintenance, use, or operation of the Encroachment or the Affected Property, regardless of whether OC San reviewed and approved any plans or inspected any work or improvement, including the Encroachment. Permittee also agrees to post and maintain Liability Insurance in the form and amounts specified above, if any, while the Encroachment is located on the Affected Property. 11. Financial Security: If a form and amount of Financial Security are indicated above, then Permittee shall provide evidence of such Financial Security in the form and in the amount as specified above. Such evidence of Financial Security shall be in a form and content approved by OC San’s General Counsel, and in the event such evidence of Financial Security is in the form of insurance, OC San and its officers, agents, employees, and representatives shall be named, by written endorsement, as an additional insured. Note: an ACORD form alone is not adequate evidence that the insurance policy has been endorsed. An endorsement must be issued and approved by the insurance company. If required, Financial Security shall be provided for the duration of the Agreement and one form of Financial Security may be substituted for another provided the replacement is first approved by OC San's General Counsel. Notwithstanding the foregoing, Permittee shall not allow any lapse in any Financial Security to occur without a new or approved substitute Financial Security to be in full force and effect. 12. Notices: All notices required or provided for under this Agreement shall be delivered in person or in writing by first class mail, postage prepaid, addressed to the parties as indicated below or such other address as a party may request by giving the other party ten (10) days written notice. In the event of an emergency situation, any written notice required or provided for shall be deemed fully satisfied if made in person to an occupant of the Property or by leaving a written notice in a conspicuous location on the Property. Any notice so delivered shall be effective upon the date of personal delivery or, in the case of mailing, on the date of mailing. 55880.00700\45189603.2 Page 5 of 10 Permittee: City of Newport Beach Attn.: Peter Tauscher 100 Civic Center Drive Newport Beach, CA 92660 OC San as Permittor: ORANGE COUNTY SANITATION DISTRICT Attn.: General Manager 18480 Bandilier Circle, Fountain Valley, CA 92708-7018 13. Successors and Assigns: Each of the obligations of the Permittee pursuant to this Agreement shall run with the Property and shall be binding on each successive owner of the Property and its heirs, administrators, successors, and assigns during the ownership thereof. 14. Grant of Easement Controls: If there is any conflict between the provisions of this Agreement and the provisions of the Grant of Easement, the provisions of the Grant of Easement shall control 15. Authority to Execute and Bind. OC San and Permittee each represent and warrant that the person(s) executing this Agreement has full and complete legal authority to do so and thereby binds the party to this Agreement. 16. Entire Agreement. Except for those documents referenced or incorporated herein, this Agreement reflects the entire agreement between OC San and Permittee and shall supersede all prior or contemporaneous oral or written understandings, statements, representations or promises between the OC San and Permittee concerning the matters contained herein. 17. Governing Law. This Agreement shall be construed, enforced and interpreted in accordance with the laws of the State of California. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this Agreement shall be in a court of competent jurisdiction in the County of Orange. 18. Fees and Costs. OC San and Permittee shall each bear their own attorneys' fees and costs incurred in connection with negotiating the matters described in this Agreement. 19. Severability. In case any part, term, portion or provision of this Agreement is determined to be illegal, invalid or unenforceable, the remaining parts, terms, portions and provisions shall remain valid, enforceable, and in full force and effect. 20. Amendment to Agreement. This Agreement may only be amended by a written agreement executed by OC San and Permittee. 21. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. 55880.00700\45189603.2 Page 6 of 10 22. Recording. It is understood and agreed that the fully executed Agreement may be recorded in the Recorder’s Office for the County of Orange. [Signatures on the following page.] 55880.00700\45189603.2 Page 7 of 10 IN WITNESS WHEREOF, OC San and Permittee have caused this Agreement to be executed and sealed, all on the day and year first written above. PERMITTEE(S) CITY OF NEWPORT BEACH Address: 100 Civic Center Drive, Newport Beach, CA 92660 By: Seimone Jurjis, City Manager RECOMMENDED FOR ACCEPTANCE: By: David A. Webb, Public Works Director ATTEST: By: Lena Shumay, City Clerk APPROVED AS TO FORM: By: Aaron C. Harp, City Attorney Note: Signatures of Permittee(s) must be acknowledged before a notary public. 55880.00700\45189603.2 Page 8 of 10 ORANGE COUNTY SANITATION DISTRICT By: Jon Dumitru, Board Chairman ATTEST: By: Kelly Lore, Clerk of the Board APPROVED AS TO FORM: By: Scott Smith, General Counsel 55880.00700\45189603.2 Page 9 of 10 (City of Newport Beach Encroachment Agreement) ACKNOWLEDGMENT A Notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of the document. State of California County of Orange On __________________, before me, ________________________, Notary Public, personally appeared ________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. (Seal) Signature: _____________________________ Date: __________________________ 55880.00700\45189603.2 Page 10 of 10 EXHIBIT A Depiction of Encroachment OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5127 Agenda Date:10/28/2026 Agenda Item No:8. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: PRIMARY SEDIMENTATION BASINS NO.3-5 REPLACEMENT AT PLANT NO.1,PROJECT NO. P1-126 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve a contingency increase of $849,780 (6%) to the existing Professional Design Services Agreement with Black & Veatch Corporation to provide design services for Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1, Project No. P1-126, for a total contingency not to exceed $2,266,080 (16%). BACKGROUND Primary treatment is the second of three liquid treatment steps at Orange County Sanitation District (OC San)Plant No.1 which removes suspended solids using large concrete primary sedimentation basins.Plant No.1 has 26 rectangular clarifiers constructed in the 1980s and 1990s and three circular clarifiers constructed in the late 1950s and early 1960s.Due to the current degraded condition of the circular clarifiers,they currently provide additional capacity during peak wet weather flows and when rectangular clarifiers are unavailable for maintenance or condition assessments.The project will replace the three circular clarifiers and related primary treatment facilities to restore reliable treatment capacity. RELEVANT STANDARDS ·Ensure the public’s money is wisely spent ·24/7/365 treatment plant reliability PROBLEM The original Professional Design Services Agreement included a 10%contingency to address changes to the original Scope of Work.A significant portion of the contingency has been used to reevaluate the rehabilitation versus replacement concept,perform system-wide electrical power system studies,review updated structural code requirements,and design a new primary effluent junction box.The new junction box reduces the need for bypass pumping during construction and provides a long-term hydraulic benefit by allowing the upstream junction box to operate at a higher water level.This improves peak wet weather flow handling and reduces the risk of an unanticipated Orange County Sanitation District Printed on 10/15/2026Page 1 of 3 powered by Legistar™ File #:2026-5127 Agenda Date:10/28/2026 Agenda Item No:8. water level.This improves peak wet weather flow handling and reduces the risk of an unanticipated primary overflow. The remaining contingency is insufficient to complete additional design changes,including a temporary motor control center for the existing odor control facility during construction,pipe material revisions and design changes to address liquefaction settlement risks,and design modifications around existing piles to reduce construction risks and delays. PROPOSED SOLUTION Approve the contingency increase to complete the remaining design changes needed to address temporary electrical equipment for support construction sequencing,liquefaction settlement,and existing site conditions. TIMING CONCERNS Delaying approval could postpone authorization of the remaining design changes and delay design completion. RAMIFICATIONS OF NOT TAKING ACTION Without the additional contingency,OC San would need to remove or reduce portions of the design scope to remain within the existing agreement budget.This could require future projects to complete omitted work or increase construction risks. PRIOR COMMITTEE/BOARD ACTIONS April 2022 -Approved a Professional Design Services Agreement with Black &Veatch Corporation to provide engineering services for Primary Sedimentation Basins No.3-5 Replacement at Plant No.1, Project No.P1-126,for an amount not to exceed $14,163,000;and approved a contingency of $1,416,300 (10%). ADDITIONAL INFORMATION N/A CEQA The project is exempt from CEQA under the Class 2 categorical exemptions set forth in California Code of Regulations sections 15302 Replacement or Reconstruction of Existing Structures and Facilities. A Notice of Exemption was filed with the OC Clerk-Recorder on April 29, 2022. FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Budget FY 2026-27 and FY 2027-28,Section 8,Page 50,Primary Sedimentation Basins No.3-5 Replacement at Plant No.1,Project No.P1-126.This item will be funded from the CIP budget. Orange County Sanitation District Printed on 10/15/2026Page 2 of 3 powered by Legistar™ File #:2026-5127 Agenda Date:10/28/2026 Agenda Item No:8. Date of Approval Contract Amount Contingency 04/22/2022 10/28/2026 $ 14,163.000 $ 1,416,300 (10%) $ 849,780 (6%) ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Presentation RL:lb Orange County Sanitation District Printed on 10/15/2026Page 3 of 3 powered by Legistar™ 9/29/2026 1 Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1, Project No. P1-126 Presented by: Daniel Berokoff Engineering Supervisor Operations Committee October 7, 2026 What is Primary Sedimentation? 2 Primary Sedimentation 1 2 9/29/2026 2 Project Overview 3 Existing Primary Rectangular Basins Project No. P1-126 Replace Primary Circular Basins Existing Secondary Treatment (AS-1) Demo Primary Rectangular Basins 1 and 2 Replace Primary Treatment Odor Control •Demolish the old control center and primary basins •Replace 3 circular Primary Clarifiers (Sedimentation Basins) •Replace Primary Treatment Odor Control •Gravity flow from Primary Circular Basins to Activated Sludge-1 (AS-1) Project Timeline 4 Design Bid & AwardPreliminary Design Construction DS3 FinalDS1DS2 May 2022 June 2024 Feb 2027 Feb 2028 Mar 2035// October Committee & Board 3 4 9/29/2026 3 Use of Existing Contingency 5 • Replaces temporary bypass pumping during construction • Captures small PEDB-2 overflows • Improves peak wet-weather protection New Primary Effluent Diversion Box New Primary Effluent Diversion Box Concept—“Overflow Catcher" Original 10% Contingency $1.416M Used Amount $1.115M Remaining $0.3M * • Reevaluate the rehabilitation versus replacement concept • Design a new primary effluent diversion box AmountItem $300,000Remaining contingency ($1,079,000)Projected remaining design changes ($779,000)Funding gap $849,780Requested 6% contingency increase $71,000Projected contingency balance Additional Contingency Needed 6 5 6 9/29/2026 4 Design Changes 7 Temporary Motor Control Center Pipe Liquefaction Structure Piles Recommend to the Board of Directors to: Approve a contingency increase of $849,780 (6%) to the existing Professional Design Services Agreement with Black and Veatch Corporation to provide design services for Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1, Project No. P1-126, for a total contingency not to exceed $2,266,080 (16%). Recommendation 8 7 8 OPERATIONS COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5128 Agenda Date:10/28/2026 Agenda Item No:9. FROM:Robert Thompson, General Manager Originator: Mike Dorman, Director of Engineering SUBJECT: RIGHT-OF-WAY SERVICES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Professional Consultant Services Agreement with Paragon Partners Consultants, Inc. for Right of Way Services, Specification No. CS-2026-725BD, for a total amount not to exceed $300,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $30,000 (10%). BACKGROUND The Orange County Sanitation District (OC San)owns and manages real property interests including easements,rights-of-way,and other property rights necessary to support its facilities and operations. These property interests require ongoing real estate and right-of-way services to support capital improvement projects, property transactions, easement management, and other operational needs. OC San requires specialized right-of-way expertise to supplement staff resources and assist with these activities as needed.Professional consultant services provide OC San with access to qualified resources to support right-of-way activities,including property research,acquisition and disposition support,negotiations,easement-related services,and other real property matters.Engaging,a qualified consultant will provide additional resources and expertise to support OC San’s ongoing right -of-way needs. RELEVANT STANDARDS ·Protect OC San assets ·Ensure the public’s money is wisely spent ·Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting Orange County Sanitation District Printed on 10/15/2026Page 1 of 3 powered by Legistar™ File #:2026-5128 Agenda Date:10/28/2026 Agenda Item No:9. PROBLEM OC San’s capital improvement projects,operational needs,and real property activities including rights-of-way,easements,and acquisitions require professional right-of-way services that cannot be fully supported with existing staff resources. PROPOSED SOLUTION Approve an agreement with Paragon Partners Consultants,Inc.to provide professional right-of-way services to supplement staff resources and support OC San’s ongoing real property and right-of-way activities. TIMING CONCERNS OC San will not have the appropriate resources to address ongoing right-of-way activities,including the identification and resolution of unapproved encroachments within OC San easements,if the contract is delayed.Unresolved encroachments may interfere with OC San’s property rights,access, and infrastructure and may increase the potential for property disputes or litigation. RAMIFICATIONS OF NOT TAKING ACTION OC San may be exposed to potential litigation resulting from inadequate easement management and outdated property records and information. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Consultant Selection OC San requested and advertised for proposals on April 27,2026.The following evaluation criteria were described in the Request for Proposals and used to determine the most qualified Consultant. Criterion Weight 1. Qualifications of the Firm 30% 2. Staffing & Project Organization 25% 3. Work Plan 25% 4. Cost 20% Two proposals were received on May 27,2026,and evaluated in accordance with the evaluation process set forth in OC San’s Purchasing Ordinance,OC SAN-61,by a pre-selected Evaluation Team consisting of the following OC San staff:Principal Staff Analyst,Engineering Supervisor,and Engineer.The Evaluation Team also included one non-voting representative from the Purchasing Division. The Evaluation Team first reviewed and scored the proposals based on the criteria listed above. Orange County Sanitation District Printed on 10/15/2026Page 2 of 3 powered by Legistar™ File #:2026-5128 Agenda Date:10/28/2026 Agenda Item No:9. The Evaluation Team first reviewed and scored the proposals based on the criteria listed above. Costs were sealed from reviewers and were evaluated by comparing submitted costs for a defined common task expected under this contract. Rank Proposer Criterion 1 (Max 30%) Criterion 2 (Max 25%) Criterion 3 (Max 25%) Criterion 4 (Max 20%) Total Weighted Score 1 Paragon Partners Consultants, Inc. 26%23%21%20%90% 2 Monument 25%19%16%20%80% Based on the above,staff recommends approval of a Professional Consultant Services Agreement to Paragon Partners Consultants,Inc.The selected firm demonstrated an excellent understanding of the scope of work,a robust and well-structured team,and a complete work plan showing how they would approach the different types of tasks. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been budgeted (Budget FY 2026-27 and 2027-28,Section 6,Page 80,Professional &Contractual Services) and the budget is sufficient for this action. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Professional Consultant Services Agreement ·Presentation Orange County Sanitation District Printed on 10/15/2026Page 3 of 3 powered by Legistar™ Professional Consultant Services Agreement 1 of 14 Specification No. CS-2026-725BD Revision 121924 PROFESSIONAL CONSULTANT SERVICES AGREEMENT RIGHT OF WAY SERVICES Specification No. CS-2026-725BD This PROFESSIONAL CONSULTANT SERVICES AGREEMENT (hereinafter referred to as “Agreement”) is made and entered into as of the date fully executed below, by and between Orange County Sanitation District (hereinafter referred to as “OC San”) and Paragon Partners Consultants, Inc. (hereinafter referred to as “Consultant”), and collectively referred to herein as the “Parties.” R E C I T A L S WHEREAS, OC San desires to obtain Right of Way Services as described in Exhibit “A” attached hereto and incorporated herein by this reference (“Services”); and WHEREAS, Consultant is qualified to provide the Services by virtue of experience, training, and expertise; and WHEREAS, OC San desires to engage Consultant to render the Services as provided herein; and WHEREAS, OC San selected Consultant to provide the Services in accordance with OC San’s current Purchasing Ordinance; and WHEREAS, on October 28, 2026, OC San’s Board of Directors, by minute order, authorized execution of this Agreement. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits specified below, the Parties agree as follows: 1. General. 1.1 This Agreement and all exhibits hereto are made by OC San and the Consultant. 1.2 The following exhibits, in order of precedence, are incorporated by reference and made part of this Agreement. Exhibit “A” – Scope of Work Exhibit “B” – Proposal and BAFO Exhibit “C” – Determined Insurance Requirement Form Exhibit “D” – Contractor Safety Standards Exhibit “E” – Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions in the Agreement shall control and thereafter the provisions in the document highest in precedence shall be controlling. 1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses, or actions incurred or undertaken by Consultant as a result of work performed in anticipation of purchases of the Services by OC San. 1.5 Work Hours: All [work or meetings with OC San staff] shall be scheduled Monday Professional Consultant Services Agreement 2 of 14 Specification No. CS-2026-725BD Revision 121924 through Friday, between the hours of 7:30 a.m. and 5:30 p.m. OC San will not pay for travel time. 1.6 Days: Shall mean calendar days, unless otherwise noted. 1.7 OC San holidays (non-working days) are as follows: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The provisions of this Agreement may be amended or waived only by an amendment executed by authorized representatives of both Parties. 1.9 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any paragraph or provision hereof. 2. Scope of Work. 2.1 Consultant shall provide the Services identified in Exhibit “A” in a competent, professional, and satisfactory manner in accordance with generally accepted industry and professional standards, including fiduciary standards, ethical practices, and standards of care and competence for its trade/profession. 2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of Work at any time. All modifications must be made by an amendment signed by both Parties. 2.3 Familiarity with Work. By executing this Agreement, Consultant warrants that: (a) it has investigated the work to be performed; (b) it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown condition materially differing from those inherent in the work or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Consultant’s risk, until written instructions are received from OC San. 2.4 Performance. Time is of the essence in the performance of the provisions hereof as they apply to specifically identified milestones, deliverables, or deadlines set forth in the Agreement and any other schedules or deadlines as directed by OC San over the term of the Agreement. Notwithstanding the foregoing, Consultant shall not be liable for any delays in performance or failure to meet project milestones or deadlines to the extent such delays are caused by: (i) OC San’s failure to provide timely access, direction, approvals, or information necessary for Consultant’s performance; (ii) changes in scope or schedule initiated by the OC San, Owner, or other project stakeholders; (iii) force majeure events or circumstances beyond Consultant’s control; or (iv) delays by other contractors/consultants or third parties not under the direct control of Consultant. In such cases, Consultant shall be entitled to a reasonable extension of time, and if such delay materially impacts Consultant’s costs, the parties shall negotiate in good faith an equitable adjustment to the Work Order price. 3. Agreement Term. 3.1 The term of this Agreement shall be for [one (1)] year[s] from the effective date of the Notice to Proceed. Professional Consultant Services Agreement 3 of 14 Specification No. CS-2026-725BD Revision 121924 3.2 Renewals. At its sole discretion, OC San may exercise the option to renew this Agreement for up to [four (4) one-year periods]. This Agreement may be renewed by an OC San Purchase Order. OC San shall have no obligation to renew the Agreement nor to give a reason if it elects not to renew it. 3.3 Extensions. The term of this Agreement may be extended only by an amendment signed by both Parties. 4. Compensation. 4.1 As compensation for the Services provided under this Agreement, OC San shall pay Consultant a total amount not to exceed Three Hundred Thousand Dollars ($300,00.00). 4.2 Consultant shall provide OC San with all required premiums and/or overtime work at no charge beyond the amount specified above. 5. Payments and Invoicing. 5.1 OC San shall pay itemized invoices submitted monthly for work completed in accordance with Exhibit “A” and consistent with Exhibit “B” thirty (30) days from receipt of the invoice and after approval by OC San’s Project Manager or designee. OC San shall be the determining party, in its sole discretion, as to whether the Services have been satisfactorily completed. 5.2 All services provided shall be billed in fifteen (15) minute increments (0.25 hours), with time rounded up to the nearest fifteen (15) minute interval. 5.3 Depending on the complexity and nature of the request, fees for various reports, including but not limited to Appraisals, Quit Claim Deeds, Surveys, and Title Services, will be mutually agreed upon by both parties prior to proceeding with any services. 5.4 Consultant shall submit its invoices to OC San Accounts Payable by electronic mail to APStaff@OCSan.gov. In the subject line include “INVOICE” and the Purchase Order Number. 6. California Department of Industrial Relations Registration and Record of Wages. 6.1 To the extent Consultant’s employees and/or its subconsultants perform work related to this Agreement for which Prevailing Wage Determinations have been issued by the California Department of Industrial Relations (DIR) as more specifically defined under Labor Code section 1720 et seq., prevailing wages are required to be paid for applicable work under this Agreement. It is Consultant’s responsibility to interpret and implement any prevailing wage requirements and Consultant agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws. 6.2 Consultant and its subconsultants shall comply with the registration requirements of Labor Code section 1725.5. Pursuant to Labor Code section 1771.4(a)(1), the work is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (DIR). 6.3 Pursuant to Labor Code section 1773.2, a copy of the prevailing rate of per diem wages is available upon request at OC San’s principal office. The prevailing rate of per diem wages may also be found at the DIR website for prevailing wage determinations at http://www.dir.ca.gov/DLSR/PWD. 6.4 Consultant and its subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Professional Consultant Services Agreement 4 of 14 Specification No. CS-2026-725BD Revision 121924 Regulations section 16461(e). Pursuant to Labor Code sections 1773.2 and 1771.4(a)(2), Consultant shall post a copy of the prevailing rate of per diem wages at the job site. 6.5 Consultant and its subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code section 1776. Consultant and its subconsultants shall submit payroll records to the Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). Pursuant to Labor Code section 1776, the Consultant and its subconsultants shall furnish a copy of all certified payroll records to OC San and/or the general public upon request, provided the public request is made through OC San, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations. Pursuant to Labor Code section 1776(h), penalties for non-compliance with a request for payroll records may be deducted from progress payments. 6.5.1 As a condition to receiving payments, Consultant agrees to present to OC San, along with any request for payment, all applicable and necessary certified payrolls and other required documents for the period covering such payment request. Pursuant to Title 8, California Code of Regulations section 16463, OC San shall withhold any portion of a payment, up to and including the entire payment amount, until certified payroll forms and any other required documents are properly submitted. In the event certified payroll forms do not comply with the requirements of Labor Code section 1776, OC San may continue to withhold sufficient funds to cover estimated wages and penalties under the Agreement. 6.6 The Consultant and its subconsultants shall comply with Labor Code section 1774 and section 1775. Pursuant to Labor Code section 1775, the Consultant and any of its subconsultants shall forfeit to OC San a penalty of not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any work. 6.6.1 In addition to the penalty and pursuant to Labor Code section 1775, the difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the Consultant or its subconsultant. 6.7 Consultant and its subconsultants shall comply with Labor Code sections 1810 through 1815. Consultant and its subconsultants shall restrict working hours to eight (8) hours per day and forty (40) hours per week, except that work performed in excess of those limits shall be permitted upon compensation for all excess hours worked at not less than one and one-half (1.5) times the basic rate of pay, as provided in Labor Code section 1815. The Consultant shall forfeit, as a penalty to OC San, twenty-five dollars ($25) per worker per calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of Labor Code sections 1810 through 1815. 6.8 Consultant and its subconsultants shall comply with Labor Code sections 1777.5, 1777.6, and 1777.7 concerning the employment of apprentices by Consultant or any subconsultant. Professional Consultant Services Agreement 5 of 14 Specification No. CS-2026-725BD Revision 121924 6.9 Consultant shall include, at a minimum, a copy of the following provisions in any contract it enters into with any subconsultant: Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860, and 1861. 6.10 Pursuant to Labor Code sections 1860 and 3700, the Consultant and its subconsultants will be required to secure the payment of compensation to employees. Pursuant to Labor Code section 1861, Consultant, by accepting this Agreement, certifies that: “I am aware of the provisions of section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” Consultant shall ensure that all its contracts with its subconsultants provide the provision above. 7. Key Personnel. Personnel, as provided in Exhibit “B,” are considered “key” to the work under this Agreement and will be available for the term of the Agreement. No person designated as key under this Agreement shall be removed or replaced without prior written consent of OC San. If OC San asks Consultant to remove a person designated as key under this Agreement, Consultant agrees to do so immediately regardless of the reason, or the lack of reason, for OC San’s request. Consultant shall assign only competent personnel to perform Services under this Agreement. 8. Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of OC San and shall be promptly delivered to OC San upon request of OC San’s Project Manager or designee or upon the termination of this Agreement and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by OC San of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at OC San’s sole risk and without liability to Consultant. Consultant shall ensure that all its contracts with its subconsultants provide for assignment to OC San of any documents or materials prepared by them. 9. Ownership of Intellectual Property. 9.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics, prototypes, models, inventions, and all other information and items made during the course of this Agreement and arising from the Services (hereinafter referred to as “New Developments”) shall be and are assigned to OC San as its sole and exclusive property. 9.2 Consultant agrees to promptly disclose to OC San all such New Developments. Upon OC San’s request, Consultant agrees to assist OC San, at OC San’s expense, to obtain patents or copyrights for such New Developments, including the disclosure of all pertinent information and data with respect thereto, the execution of all applications, specifications, assignments, and all other instruments and papers which OC San shall Professional Consultant Services Agreement 6 of 14 Specification No. CS-2026-725BD Revision 121924 deem necessary to apply for and to assign or convey to OC San, its successors and assigns, the sole and exclusive right, title, and interest in such New Developments. Consultant agrees to obtain or has obtained written assurances from its employees and contract personnel of their agreement to the terms hereof regarding New Developments and confidential information. 9.3 Consultant warrants that Consultant will have good title to any New Developments and the right to assign New Developments to OC San free of any proprietary rights of any other party or any other encumbrance whatever. 9.4 The originals of all computations, drawings, designs, graphics, studies, reports, manuals, photographs, videotapes, data, computer files, and other documents prepared or caused to be prepared by Consultant or its subconsultants in connection with the Services hereunder shall be delivered to and shall become the exclusive property of OC San. OC San may utilize such documents, at its own risk, for OC San’s applications on other projects or extensions of this project. 10. Right to Review Services, Facilities, and Records. 10.1 OC San reserves the right to review any portion of the Services performed by Consultant under this Agreement and Consultant agrees to cooperate to the fullest extent possible in such endeavor. 10.2 Consultant shall furnish to OC San such reports, statistical data, and other information pertaining to Consultant’s Services as shall be reasonably required by OC San to carry out its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bonds and other obligations. 10.3 The right of OC San to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant shall not relieve Consultant of any obligation set forth herein. 11. Conflict of Interest and Reporting. 11.1 Consultant shall, at all times, avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement. 11.2 Consultant affirms that, to the best of its knowledge, there exists no actual or potential conflict between Consultant’s families, business, or financial interest and the Services under this Agreement and in the event of change in either its private interests or Services under this Agreement, it shall raise with OC San any question regarding possible conflict of interest which may arise as a result of such change. 12. Damage to OC San’s Property. Any of OC San’s property damaged by Consultant, any subconsultant, subcontractor, or by the personnel of either will be subject to repair or replacement by Consultant at no cost to OC San. 13. Freight (F.O.B. Destination). Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement. 14. Audit Rights. Consultant agrees that, during the term of this Agreement and for a period of three (3) years after its expiration or termination, OC San shall have access to and the Professional Consultant Services Agreement 7 of 14 Specification No. CS-2026-725BD Revision 121924 right to examine any directly pertinent books, documents, and records of Consultant relating to the invoices submitted by Consultant pursuant to this Agreement. 15. Contractor Safety Standards and Human Resources Policies. OC San requires Consultant, its subconsultants, and its subcontractors to follow and ensure their employees follow all Federal, State, and local regulations as well as Contractor Safety Standards while working at OC San locations. If, during the course of the Agreement, it is discovered that Contractor Safety Standards do not comply with Federal, State, or local regulations, the Consultant is required to follow the most stringent regulatory requirement at no additional cost to OC San. Consultant, its subconsultants, and all of their employees shall adhere to all applicable Contractor Safety Standards in Exhibit “D” and the Human Resources Policies in Exhibit “E.” 16. Insurance. Consultant and all its subconsultants shall purchase and maintain, throughout the term of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Exhibit “C” – Determined Insurance Requirement Form. Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OC San, nor shall Consultant allow any subconsultant to commence service pursuant to a subcontract until all insurance required of the subconsultant has been obtained. Failure to obtain and maintain the required insurance coverage shall result in termination of this Agreement. 17. Indemnification and Hold Harmless Provision. Consultant shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or may be caused by Consultant’s Services under this Agreement, or by its subconsultant(s), or by anyone directly or indirectly employed by Consultant, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole negligence of or willful misconduct of OC San, Consultant shall indemnify, protect, defend, and hold harmless OC San, its elected and appointed officials, officers, agents, and employees from and against any and all third-party claims, liabilities, damages, or expenses of any nature, including attorneys’ fees: (a) for injury to or death of any person, or damage to property, or interference with the use of property arising out of or in connection with Consultant’s performance under the Agreement, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process; or any patented or unpatented invention, article, or appliance furnished or used under the Agreement, and/or (c) on account of any goods and services provided under this Agreement. This indemnification provision shall apply to any alleged negligent acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Consultant or anyone employed by or working under Consultant. To the maximum extent permitted by law, Consultant’s duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Consultant agrees to provide this defense immediately upon written notice from OC San, and with well qualified, adequately insured, and experienced legal counsel acceptable to OC San. This section shall survive the expiration or early termination of the Agreement. Notwithstanding the foregoing, if Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, Professional Consultant Services Agreement 8 of 14 Specification No. CS-2026-725BD Revision 121924 recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 18. Independent Contractor. 18.1 The relationship between the Parties hereto is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 18.2 During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act as OC San’s officers, employees, or agents. OC San assumes no liability for Consultant’s action and performance nor assumes responsibility for taxes, funds, payments, or other commitments, expressed or implied, by or for Consultant. 18.3 Consultant shall not be considered an agent of OC San for any purpose whatsoever nor shall Consultant have the right to, and shall not, commit OC San to any agreement, contract, or undertaking. Consultant shall not use OC San’s name in its promotional material or for any advertising or publicity purposes without prior expressed written consent. 18.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on OC San’s payroll as regular employees including, without limitation, worker’s compensation, disability insurance, vacation, or holiday or sick pay. Consultant shall be responsible for providing, at Consultant’s expense, disability, worker’s compensation, and other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder. 18.5 Consultant shall be obligated to pay any and all applicable Federal, State, and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OC San for any claims, losses, costs, fees, liabilities, damages, or penalties suffered by OC San arising out of Consultant’s breach of this provision. 18.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OC San’s payroll as regular employees. Consultant shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OC San misclassified Consultant for tax purposes. 19. Subcontracting and Assignment. Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OC San. Any such attempted delegation or assignment shall be void. 20. No Solicitation of Employees. 20.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one (1) year immediately following expiration or termination of this Agreement or any extension hereof, call on, solicit, or take away any of the employees whom Consultant became aware of as a result of Consultant’s Services to OC San. 20.2 Consultant acknowledges that OC San’s employees are critical to its business and OC San expends significant resources to hire, employ, and train employees. Should Consultant employ or otherwise engage OC San’s employees during the term of this Agreement and for a period of six (6) months following expiration or termination of this Agreement, Consultant shall pay OC San thirty percent (30%) of the former Professional Consultant Services Agreement 9 of 14 Specification No. CS-2026-725BD Revision 121924 employee’s most recent annual salary earned at OC San to accurately reflect the reasonable value of OC San’s time and costs. This payment is in addition to any other rights and remedies OC San may have at law. 21. Confidentiality and Non-Disclosure. 21.1 Consultant acknowledges that, in performing the Services hereunder, OC San may have to disclose to Consultant, orally and in writing, certain confidential information that OC San considers proprietary and has developed at great expense and effort. 21.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or corporation, without OC San’s prior written consent, any trade secret, confidential information, knowledge, or data relating to the products, process, or operation of OC San. 21.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm, or corporation any data, information, technology, or material developed or obtained by Consultant during the term of this Agreement. 21.4 Consultant agrees as follows: 21.4.1 To use the confidential information only for the purposes described herein; to not reproduce the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others. 21.4.2 To restrict access to the confidential information to its subconsultant or personnel of Consultant who (1) have a need to have such access and (2) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement. 21.4.3 To return all confidential information in Consultant’s possession upon termination of this Agreement or upon OC San’s request, whichever occurs first. 21.4.4 To hold in confidence information and materials, if any, developed pursuant to the Services hereunder. 21.4.5 The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential. 22. Non-Liability of OC San Officers and Employees. No officer or employee of OC San shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or breach by OC San or for any amount which may become due to Consultant or to its successor, or for breach of any obligation under the terms of this Agreement. 23. Third-Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC San and Consultant. 24. Applicable Laws and Regulations. Consultant shall comply with all applicable Federal, State, and local laws, rules, and regulations. Consultant also agrees to indemnify and hold OC San harmless from any and all damages and liabilities assessed against OC San as a result of Consultant’s noncompliance therewith. Any provision required by law to be Professional Consultant Services Agreement 10 of 14 Specification No. CS-2026-725BD Revision 121924 included herein shall be deemed included as a part of this Agreement whether or not specifically included or referenced. 25. Licenses, Permits, Ordinances, and Regulations. Consultant represents and warrants to OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to provide the Services. Any and all fees required by Federal, State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work performed under this Agreement will be paid by Consultant. 26. Regulatory Requirements. Consultant shall perform all work under this Agreement in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and Water Codes Division 2. 27. Environmental Compliance. Consultant shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Consultant, its subconsultants, subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. 28. California Air Resources Board Mobile Source Regulations. Consultant and its applicable subconsultants and subcontractors shall comply with the following California Air Resources Board Mobile Source Regulations: • Advanced Clean Fleet (ACF): 13 CCR 2013-2013.4; 13 CCR 2015-2015.6 • Truck & Bus Regulation (T&B): 13 CCR 2025 • Clean Truck Check (CTC): 13 CCR 2195-2199.1 • Off-Road Diesel Amendments (ORD): 13 CCR 2449-2449.2 29. California Voluntary Protection Program Annual Reporting Requirement. If Consultant will potentially work 1,000 combined hours in a quarter, for the term of the Agreement, Consultant shall provide an annual report detailing its safety and health information, including, but not limited to, its total number of employees, work hours, number of injuries and illnesses, and number of injury and illness cases involving days away from work, restricted work activity and/or job transfer. Consultant shall furnish this report to OC San no later than January 20th each calendar year. Failure to provide this data by the required due date may result in suspension of Consultant’s services with OC San. Any delay arising out of or resulting from such suspension shall be Consultant’s sole responsibility and considered Consultant caused delay, which shall not be compensable by OC San. 30. Dispute Resolution. 30.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County (“JAMS”), or any similar organization or entity conducting an alternate dispute resolution process. Professional Consultant Services Agreement 11 of 14 Specification No. CS-2026-725BD Revision 121924 30.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to Code of Civil Procedure, Part 3, Title 9, sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to Code of Civil Procedure section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator’s decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 31. Remedies. In addition to other remedies available in law or equity, if the Consultant fails to make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OC San rejects the goods or Services or revokes acceptance of the goods or Services, OC San may (a) cancel the Agreement; (b) recover whatever amount of the purchase price OC San has paid, and/or (c) “cover” by purchasing, or contracting to purchase, substitute goods or services for those due from Consultant. In the event OC San elects to “cover” as described in (c), OC San shall be entitled to recover from Consultant as damages the difference between the cost of the substitute goods or services and the Agreement price, together with any incidental or consequential damages. 32. Force Majeure. Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government, or any other cause beyond its control, but the affected party shall use reasonable efforts to minimize the extent of the delay. Work affected by a force majeure condition may be rescheduled by mutual consent of the Parties. 33. Termination. 33.1 OC San reserves the right to terminate this Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice from OC San. Upon receipt of a termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay Consultant for work performed (cost and fee) through the date of termination. Consultant expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this Agreement and release OC San from any further fee, cost, or claim hereunder by Consultant other than for work performed through the date of termination. 33.2 OC San reserves the right to terminate this Agreement immediately upon OC San’s determination that Consultant is not complying with the Scope of Work requirements, or if the level of service is inadequate. . 33.3 OC San may also terminate this Agreement for default, in whole or in part, by written Notice of Default to Consultant: • if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or • if Consultant sells its business; or • if Consultant breaches any of the terms of this Agreement; or • if the total amount of compensation exceeds the amount authorized under this Agreement. Professional Consultant Services Agreement 12 of 14 Specification No. CS-2026-725BD Revision 121924 Consultant shall have fifteen (15) days from the receipt of the Notice of Default to cure the default (“Cure Period”). During the period of time that Consultant is in default, OC San shall hold all invoices and, if the default is cured, proceed with payment as applicable, without liability for interest. If Consultant does not cure the default at the conclusion of the Cure Period, OC San may immediately terminate this Agreement with notice to Consultant and may pursue, without prejudice, any other remedy to which OC San may be entitled at law, in equity or under this Agreement. 33.4 All OC San’s property in the possession or control of Consultant shall be returned by Consultant to OC San on demand or at the expiration or termination of this Agreement, whichever occurs first. 34. Attorney’s Fees. If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements in addition to any other relief to which the prevailing party may be entitled. 35. Waiver. The waiver by either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Consultant to which OC San does not object shall not operate as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach. 36. Severability. If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection, or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 37. Survival. The provisions of this Agreement dealing with payment, warranty, indemnity, and forum for enforcement shall survive expiration or early termination of this Agreement. 38. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange in the event any action is brought in connection with this Agreement or the performance thereof. 39. Notices. 39.1 All notices under this Agreement must be in writing. Written notice shall be delivered by personal service, by electronic telecommunication, or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand, or request sent. All notices shall be effective when first received at the following addresses: OC San: Natalia Bello Buyer Orange County Sanitation District 18480 Bandilier Circle Professional Consultant Services Agreement 13 of 14 Specification No. CS-2026-725BD Revision 121924 Fountain Valley, CA 92708 Nbello@ocsan.gov Consultant: William McCawley Vice President/CFO Paragon Partners Consultants, Inc. 5660 Katella Ave, Suite 100 Cypress, CA 90630 Bmccawley@paragon-partners.com 39.2 Each party shall provide the other party written notice of any change in address as soon as practicable. 40. Read and Understood. By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement. 41. Authority to Execute. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound. 42. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral communications and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. [Intentionally left blank. Signatures follow on the next page.] Professional Consultant Services Agreement 14 of 14 Specification No. CS-2026-725BD Revision 121924 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by their duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By: Jon Dumitru Chair, Board of Directors Dated: _________________ By: Kelly A. Lore Clerk of the Board Dated: _________________ By: Kevin Work Purchasing & Contracts Manager Paragon Partners Consultants, Inc. Dated: _________________ By: Print Name and Title of Officer NB EXHIBIT A Specification No. CS-2026-725BD EXHIBIT A SCOPE OF WORK For Right of Way Services EXHIBIT A Page 1 of 2 Specification No. CS-2026-725BD SCOPE OF WORK RIGHT OF WAY SERVICES SPECIFICATION NO. CS-2026-725BD EXECUTIVE SUMMARY/OVERVIEW The Orange County Sanitation District (OC San) is a public agency serving 2.6 million residents and businesses in central and northwestern Orange County, California. OC San operates 396 million miles of sewer infrastructure and two treatment plants, processing approximately 185 million gallons of wastewater daily. As a part of ongoing capital improvement and infrastructure maintenance programs, OC San requires professional right-of-way services to support project delivery and regulatory compliance. Purpose OC San is seeking comprehensive and strategic Right of Way (ROW) services necessary to secure all real property interests required for successful project delivery. Services shall be performed in full compliance with applicable federal, state, and local laws and regulations, including the Uniform Relocation Assistance and Real Property Acquisition Policies Act (Uniform Act), and in accordance with industry standards and best practices consistent with the International Right of Way Association. The Consultant shall implement acquisition strategies that minimize project risk, support schedule certainty, and promote fair and equitable treatment of property owners. 2 General Requirements 2.1 The Consultant shall provide all services in accordance with the specifications and performance standards set forth herein. 2.2 Unless otherwise agreed, the vendor shall furnish all material, labor, equipment, and supplies necessary to perform the services required herein. 3 Specific Requirements/Services 3.1 Property Research and Title Services 3.1.1 The Consultant shall conduct property research and title services to ensure accurate identification of ownership and all parties of interest. Services shall include the review and analysis of preliminary title reports, deeds, encumbrances, liens, and existing easements, as well as coordination of necessary title-curing actions. The Consultant shall proactively identify potential title risks and provide recommendations to mitigate their impact on project delivery. 3.2 Appraisal and Valuation Support 3.2.1 The Consultant shall provide appraisal coordination and valuation support services to establish defensible and well-documented determinations of just compensation determined by appraisal documentation. Services shall include coordination of appraisal assignments, technical review of appraisal reports for compliance with standard appraisal guidelines and accuracy, preparation of written offers of just compensation after OC San Project Manager’s approval, and support of administrative settlements, as appropriate. The Consultant shall ensure all valuation activities are consistent with applicable professional standards, licenses and agency requirements. EXHIBIT A Page 2 of 2 Specification No. CS-2026-725BD 3.3 Acquisition and Negotiation Services 3.3.1 The Consultant shall provide professional acquisition and negotiation services in a manner that complies with all applicable laws and OC San policies, with all negotiations documented and conducted within established timelines. Services shall include preparing acquisition documents (including fee title, permanent easements, and temporary construction easements), and coordinating document execution, escrow, and recordation. The Consultant shall employ proactive communication strategies to reduce disputes and support timely acquisition. 3.4 Eminent Domain Support (If required) 3.4.1 The Consultant shall provide eminent domain support services when voluntary acquisition efforts do not result in agreement. Services shall include preparing condemnation support documentation, coordinating with OC San’s Project Manager or Designee , when legal counsel is needed, and maintaining comprehensive acquisition files suitable for litigation support. The Consultant shall ensure all documentation is accurate, defensible, and aligned with statutory requirements. 3.5 Geographic Information Systems (GIS) 3.5.1 The Consultant shall provide spatial analysis and mapping services, including the preparation of parcel maps, exhibit maps, acquisition maps, strip maps, and easement overlays to clearly identify required property interest in a format compatible with OC San GIS System. The Consultant shall verify parcel boundaries, ownership dates, and right-of-way limits by coordinating with survey, engineering, and title documentation to ensure consistency and accuracy across project records. 3.6 Deliverables 3.6.1 The Consultant shall provide complete, organized, and audit-ready deliverables associated with the foregoing services. Deliverables include property data sheets, title summaries, written offers of just compensation, negotiation logs, executed and recorded conveyance documents, relocation case files (if applicable) and others as requested, and ROW certification documentation, as required for project close-out. 4 Staff Assistance 4.1 The Consultant shall be assigned an OC San Project Manager or Designee who shall serve as the primary point of contact for all project coordination. Any meetings and/or correspondence related to this project shall be scheduled through and approved by OC San’s Project Manager/Designee. 9/30/2026 1 Right-of-Way Services, Specification No. CS-2026-725BD Presented by: Justin Fenton Engineering Manager Operations Committee October 7, 2026 •Tangible: •Physical Land & Properties •Structures, Infrastructure, & Appurtenances •Intangible: •Easements—Permanent & Temporary (for construction) •Right-of-Way Permits What is Real Property? 2 1 2 9/30/2026 2 •OC San’s real property rights are essential to our operation •Rights are impacted by: •Capital Improvement Projects •Operational Needs •Others (ex: encroachments, development) Importance to OC San 3 Manhole Future Project Locations Easement •Property Research and Title Services •Appraisal and Valuation Support •Acquisition and Negotiation Services •Mapping Services and Parcel Verifications •Eminent Domain Support (if required) Services to be Provided 4 3 4 9/30/2026 3 Recommend to the Board of Directors to: A. Approve a Professional Consultant Services Agreement with Paragon Partners Consultants, Inc. for Right of Way Services, Specification No. CS-2026-725BD, for a total amount not to exceed $300,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $30,000 (10%). Recommendation 5 5 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5140 Agenda Date:10/28/2026 Agenda Item No:10. FROM:Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF SEPTEMBER 2026 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Public Affairs Update for the month of September 2026. BACKGROUND Included in this report are recent activities of interest,managed by the Public Affairs Office during the month of September 2026. 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 recognized leader in the water/wastewater industry.Despite industry recognition,awareness among OC San customers may be limited 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 OC San’s responsibility to ensure that ratepayers understand the vital services we provide. Many customers may not realize that improper waste disposal into the sanitation system can adversely impact OC San sewer lines,reclamation plants,and the quality of water supplied by the Groundwater Replenishment System (GWRS).By enhancing communication channels and fostering understanding,we aim to bridge this gap and increase public understanding of OC San’s essential services and the role the community plays in protecting public health and the environment. Orange County Sanitation District Printed on 10/15/2026Page 1 of 4 powered by Legistar™ File #:2026-5140 Agenda Date:10/28/2026 Agenda Item No:10. 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 key programs such as the What2Flush program,energy production, water recycling,biosolids,and the source control program.This,in turn,helps improve the quality of wastewater that is recycled or released to the ocean,as well as public knowledge and understanding of wastewater treatment. RAMIFICATIONS OF NOT TAKING ACTION Failing to inform the community,local agencies,and businesses about OC San may result in insufficient support for our mission and hinder our effectiveness. PRIOR COMMITTEE/BOARD ACTIONS May 2026 - Received and filed the Public Affairs Strategic Plan for Fiscal Years 2026-2028. ADDITIONAL INFORMATION Activities for this Reporting Period (August 21- September 20): 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. Internal Communication and Employee Engagement Internal Communication Over the course of the reporting month,there were 16 posts on the employee intranet -The San Box, and four emails were distributed to staff on relevant weekly topics through our Three Things to Know email. VPP Celebration On September 15,OC San held a Voluntary Protection Program (VPP)Celebration at Plant No.2 to recognize and acknowledge the collective efforts of all employees who contributed to this achievement.This recognition from Cal/OSHA reinforces OC San’s strong safety culture,employee engagement, and commitment to maintaining a safe workplace. Public Awareness and Education Tours and Presentations During this reporting period OC San staff hosted five tours welcoming various groups including Whittier Christian High School,Cypress High School,a public tour,members of the Grand Jury,and attendees from the State of OC San event.OC San staff joined Orange County Coastkeeper for Coastal Cleanup Day by hosting a booth and coordinating a group of volunteers for the beach cleanup. Orange County Sanitation District Printed on 10/15/2026Page 2 of 4 powered by Legistar™ File #:2026-5140 Agenda Date:10/28/2026 Agenda Item No:10. Library Program OC San’s library program continued with its goal of reaching a younger audience by partnering with local libraries to provide age-appropriate programs that promote environmental awareness and career exploration.During the reporting period,OC San brought the ‘Tools of Trade’Workshop to the City of Orange Public Library where attendees had the opportunity to learn directly from OC San staff about careers in wastewater. Media and Digital Communications Social Media OC San messaging,announcements,and program updates are posted across OC San’s social media platforms featuring a variety of topics such as introduction of our new mascot,career opportunities,and other OC San programs and initiatives.Our social media handle is @OCSanDistrict. ·Facebook: 17 posts reaching 8,527 people ·Instagram: 17 posts reaching 23,665 people ·LinkedIn: 4 posts reaching 2,223 people ·X: 13 posts reaching 509 people Brand Management and Creative Services Steven the Sewer Pipe OC San’s mascot continues to be incorporated into educational materials and social media making more appearances to draw interest and helping communicate OC San’s work in an engaging and accessible way. Government and Legislative Affairs State of OC San The annual State of OC San took place on Friday,September 18 at OC San Headquarters.The event featured Troy Edgar,Deputy Secretary of the Department of Homeland Security,as the distinguished guest speaker.It also hosted community members,and local,state,and federal dignitaries to learn about OC San’s recent accomplishments. Annual Report OC San’s 2025-2026 Annual Report,Connecting People,Projects,and Purpose highlights the year’s accomplishments including managing more than 80 active Capital Improvement Program projects, two innovative technologies that transform how biosolids are managed -Supercritical Water Oxidation (SCWO)and Deep Well Injection,the Pretreatment Honor Roll Program,our financial standing, outreach efforts, and much more. Capital Project and Construction Outreach Community Outreach Update Outreach efforts for OC San construction activities are ongoing in the cities of Orange,Tustin,Santa Ana,Costa Mesa,Cypress,Los Alamitos,La Palma,Seal Beach,Huntington Beach,and Newport Beach.Project updates were shared during this reporting period through our website,email alerts, text alerts,and direct notifications reaching over 9,000 members of the public.OC San also worked with the respective cities to share construction updates via city publications.For details on each project, visit www.ocsan.gov/construction. Orange County Sanitation District Printed on 10/15/2026Page 3 of 4 powered by Legistar™ File #:2026-5140 Agenda Date:10/28/2026 Agenda Item No:10. General Manager and Executive Support VIP Tours and Presentations OC San General Manager Rob Thompson provided a tour to the Grand Jury.A presentation was also given by Director Jamie Valenica and staff to a group in Fullerton highlighting all of OC San’s efforts to protect public health and the environment. Activities Planned for the Next Reporting Period: Presentations & Outreach During the next reporting period,OC San is scheduled to host seven tours and attend the Orange County Water Summit,the Cypress Community Festival,and the Healthy Living Expo in Irvine.Staff will also participate in a Women in Water Panel for the OC Water Association. Construction Outreach Outreach efforts will continue for various construction projects including:the Bay Bridge Pump Station and Force Mains project in Newport Beach,the Taft Avenue Sewer Improvement Project in Orange,the Cypress Trunk Sewer project in Cypress,Los Alamitos,and La Palma,and the Santa Ana Trunk Sewer project in Santa Ana. OC San Connection Newsletter The fall issue of the Community Newsletter will be published and distributed in late September.Past issues can be found at www.ocsan.gov/newsletter. Member Agency Outreach Toolkit This quarter’s toolkit will include our new video library with holiday specific material for the upcoming season.The toolkit will be shared with our member agencies to distribute on their communication channels. CEQA N/A FINANCIAL CONSIDERATIONS All items mentioned are included in OC San’s FY 2026-27 and FY 2027-28 Budget. ATTACHMENTS 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 - September 2026 Orange County Sanitation District Printed on 10/15/2026Page 4 of 4 powered by Legistar™ Outreach and Media Summary September 2026 (August 21- September 20) OC San Public Af fair s Offic e Table of Contents OUTREACH REPORT…………………………………………………………PAGES 1-2 FACEBOOK POSTINGS …………………………………………….............PAGE 3 X POSTINGS …………………………………………………………………..PAGE 4 INSTAGRAM POSTINGS……………………………………………………..PAGE 5 LINKEDIN POSTINGS…………………………………………………………PAGE 6 NEWS ARTICLES………………………………………………………………PAGE 7 Outreach Report: August 21 - September 20, 2026 Date Tours Attendees 9/08/26 Public Tour 9 Eric Halverson 9/09/26 Cypress High School 34 Andy DaSilva 9/12/26 Bassett Adult School 5 Shabbir Basrai 9/15/26 Grandy Jury 20 Rob Thompson 9/18/26 State of OC San Tour 25 Mike Dorman Date Speaking Engagements/Events Attendees 8/22/26 Morningside of Fullerton Presentation 17 Director Valencia Rebecca Long 9/08/26 Below and Beyond Library Program: Tools of the Trade Workshop in the City of Orange 5 Belen Carrillo/ Donald Herrera/ Valerie Ratto 9/15/26 Coastkeeper Coastal Cleanup Day 70 Becky Polcyn/Valerie Ratto/Carrie Robles 9/18/26 State of OC San 150 Rob Thompson Project Area Outreach Notifications # of People Reached Orange Taft Ave. Sewer Improvement Project paving work on Meats Ave. 57 page views 1,500 notices distributed 611 email subscribers 2 website posts 1 printed notice 1 email alert Cypress Cypress Trunk Sewer Project bypass installation and pipe bursting 169 page views 1,000 notices distributed 466 email subscribers 2 website posts 1 printed notice 2 email alerts Santa Ana Santa Ana Trunk Sewer Rehabilitation Project upcoming work on Alton Ave. 121 page views 308 email subscribers 2 website posts 2 email alerts External Communications Distribution # of People Reached Board Member Talking Points One 50 Website Posts 4 posts 107 views Facebook 17 posts 8.5k reached X 13 posts 509 reached Instagram 17 posts 23.6k reached LinkedIn 4 posts 2.2k reached Post performance - Facebook Pages Data from 21 Aug, 2026 to 20 Sep, 2026 Sources Orange County Sanitation DistrictOD Orange County Sanitation District Sep 18, 22:58OD (Post with no description)128 61.54%11 437 Orange County Sanitation District Sep 18, 20:30OD A year of projects, people, and purpose 💧 Our 2025-26 Annual Report takes a look at the work, ideas, and people behind OC San and how they all come together to make a difference for our community. See what’s been… 21 8.79%5 339 Orange County Sanitation District Sep 15, 17:10OD From cybersecurity to tech support and data management, we couldn’t do it without our IT pros! Happy National IT Appreciation Day! 🫡💻23 33.82%4 100 Orange County Sanitation District Sep 14, 16:10OD Steven the Sewer Pipe is on the move! Next stop: OC San’s construction sites 🚧 Our mascot decided to explore what our Capital Improvement Program is all about for Construction Appreciation Week! Check out som… 88 10.99%12 1,248 Orange County Sanitation District Sep 12, 17:01OD Traffic alert ⚠ As part of the Santa Ana Trunk Sewer Rehabilitation project, the westbound lane of Alton Avenue between Fairview and Susan Streets will be closed starting Monday, September 14, and last up to five months.… 8 1.79%3 712 Orange County Sanitation District Sep 09, 16:30OD Nights, weekends, holidays… no matter when, we’re here for you (and your wastewater)😎 OC San operates 24/7 to ensure your wastewater keeps flowing. 58 2.71%17 3,044 Orange County Sanitation District Sep 08, 16:15OD Just the 3 P's, please 🧻 Protect private, local, and regional sewer pipes by sticking to the 3 P's: pee, poop, and toilet paper! Your pipes (and the sewer system) will thank you. Learn more about what belongs down the drain a… 🚽 4 1.72%2 314 Orange County Sanitation District Sep 08, 14:10OD The OC San Administration Committee Meeting (5 PM) will be happening on Wednesday, September 9. You can view the agenda here:3 5.17%1 127 Orange County Sanitation District Sep 04, 16:30OD But for the record, we're OC San. You would know that if you came on a tour 😉 Sign up when you're ready at ocsan.gov/tours ✨116 9.44%21 1,634 Orange County Sanitation District Sep 01, 16:20OD Your next career opportunity awaits 🛠🔬⚙ Join the team that keeps things flowing at ocsan.gov/careers. *Open positions posted in August 2026 11 4.42%2 390 Orange County Sanitation District Aug 31, 14:26OD The OC San Operations Committee Meeting (5 PM) will be happening on Wednesday, September 2. You can view the agenda here:4 5.97%2 117 Orange County Sanitation District Aug 30, 16:10OD Beach ready, all the time 🏝⛱ 🌊 Our Ocean Monitoring Team collects weekly water samples along 21 miles of shoreline, keeping it safe, clean, and always ready for you to enjoy. #NationalBeachDay 8 4.44%5 301 Orange County Sanitation District Aug 28, 16:20OD Trickling Filter Media Replacement 🤝 Cool Crane Pics Our Plant No. 1 Trickling Filters are in the middle of an upgrade! We're replacing the media inside these structures, where wastewater trickles over materials that are… 61 12.84%8 750 Orange County Sanitation District Aug 26, 16:01OD Your TP called. It wants to work at OC San. 🧻 Happy National Toilet Paper Day to one of our favorite 3 P's!33 6.67%10 637 Orange County Sanitation District Aug 24, 16:01OD 1 foot. 90% accuracy 📏71 4.88%11 1,765 Orange County Sanitation District Aug 24, 14:08OD The OC San Steering Committee Meeting (5 PM) and Board of Directors Meeting (6 PM) will be happening on Wednesday, August 26. You can view the agenda here: 4 5%1 132 Orange County Sanitation District Aug 21, 16:01OD A quick break from your regularly scheduled programming ✈27 20.77%14 218 DATE POST ENGAGEMENT ENGAGEMENT RATE LIKES VIEWS 3 Post performance - X Data from 21 Aug, 2026 to 20 Sep, 2026 Sources @OCSanDistrict@ @OCSanDistrict Sep 18, 20:30@ A year of projects, people, and purpose 💧 Our 2025-26 Annual Report takes a look at the work, ideas, and people behind OC San and how they all come together to make a difference for our community. See what’s been… 0%0 31 @OCSanDistrict Sep 15, 17:10@ From cybersecurity to tech support and data management, we couldn’t do it without our IT pros! Happy National IT Appreciation Day! 🫡💻 https://t witter.com/OCSanDistrict/status/2099908613519081876/video/1 0%0 37 @OCSanDistrict Sep 14, 16:10@ Steven the Sewer Pipe is on the move! Next stop: OC San’s construction sites for Construction Appreciation Week 🚧 Check out some of the cool projects we’re working on and join Steven in the action at https://ocsan.g… 20%6 30 @OCSanDistrict Sep 12, 17:00@ Traffic alert ⚠ As part of the Santa Ana Trunk Sewer Rehabilitation project, the westbound lane of Alton Avenue between Fairview and Susan Streets will be closed starting Monday, September 14. Learn more about the… 4.76%3 63 @OCSanDistrict Sep 09, 16:30@ Nights, weekends, holidays… no matter when, we’re here for you (and your wastewater)😎 OC San operates 24/7 to ensure your wastewater keeps flowing. https://twitter.com/OCSanDistrict/status/2097724224001483055… 0%0 34 @OCSanDistrict Sep 08, 16:15@ Just the 3 P's, please 🧻 Protect private, local, and regional sewer pipes by sticking to the 3 P's: pee, poop, and toilet paper! Your pipes (and the sewer system) will thank you. Learn more about what belongs down the drain a… 🚽 2.17%1 46 @OCSanDistrict Sep 04, 16:30@ But for the record, we're OC San. You would know that if you came on a tour 😉 Sign up when you're ready at https://ocsan.gov/tours ✨ https://tw itter.com/OCSanDistrict/status/2095912280084922749/video/1 0%0 32 @OCSanDistrict Sep 01, 16:20@ Your next career opportunity awaits 🛠🔬⚙ Join the team that keeps things flowing at https://ocsan.gov/careers. *Open positions posted in August 2026 https://twitter.com/OCSanDistrict/status/209482265366415… 6.06%2 33 @OCSanDistrict Aug 30, 16:10@ Beach ready, all the time 🏝⛱ 🌊 Our Ocean Monitoring Team collects weekly water samples along 21 miles of shoreline, keeping it safe, clean, and always ready for you to enjoy. #NationalBeachDay https://twitter.co… 2.04%1 49 @OCSanDistrict Aug 28, 16:20@ Trickling Filter Media Replacement 🤝 Cool Crane Pics Our Plant No. 1 Trickling Filters are in the middle of an upgrade! We're replacing the media inside these structures, where wastewater trickles over materials that are… 8.82%3 34 @OCSanDistrict Aug 26, 16:00@ Your TP called. It wants to work at OC San. 🧻 Happy National Toilet PaperDay to one of our favorite 3 P's! https://twitter.com/OCSanDistrict/status/2092643341498233064/video/1 4.65%2 43 @OCSanDistrict Aug 24, 16:00@ 1 foot. 90% accuracy 📏 https://twitter.com/OCSanDistrict/status/2091918 471533597079/video/1 0%0 38 @OCSanDistrict Aug 21, 16:00@ A quick break from your regularly scheduled programming ✈ https://twitt er.com/OCSanDistrict/status/2090831318250578098/video/1 0%0 39 DATE POST ENGAGEMENT RATE ENGAGEMENTS IMPRESSIONS 4 Post performance - Instagram Business Data from 21 Aug, 2026 to 20 Sep, 2026 Sources ocsandistrictO ocsandistrict Sep 19, 16:23O These ladies mean business! Stop by our booth at Coastal Cleanup Day!0%0 190 ocsandistrict Sep 18, 20:30O A year of projects, people, and purpose 💧 Our 2025-26 Annual Report takes a look at the work, ideas, and people behind OC San and how they all come together to make a difference for our community. See what’s been… 8.45%18 213 ocsandistrict Sep 15, 17:10O From cybersecurity to tech support and data management, we couldn’t do it without our IT pros! Happy National IT Appreciation Day! 🫡💻2.61%32 1,840 ocsandistrict Sep 14, 16:12O Steven the Sewer Pipe is on the move! Next stop: OC San’s construction sites 🚧 Our mascot decided to explore what our Capital Improvement Program is all about for Construction Appreciation Week! Check out som… 10.09%40 436 ocsandistrict Sep 12, 17:02O Traffic alert ⚠ As part of the Santa Ana Trunk Sewer Rehabilitation project, the westbound lane of Alton Avenue between Fairview and Susan Streets will be closed starting Monday, September 14, and last up to five months.… 0.55%13 3,471 ocsandistrict Sep 12, 16:05O (No description)0%0 215 ocsandistrict Sep 12, 16:05O (No description)0%0 223 ocsandistrict Sep 09, 16:31O Nights, weekends, holidays… no matter when, we’re here for you (and your wastewater)😎 OC San operates 24/7 to ensure your wastewater keeps flowing. 4.36%113 2,730 ocsandistrict Sep 08, 16:17O Just the 3 P's, please 🧻 Protect private, local, and regional sewer pipes by sticking to the 3 P's: pee, poop, and toilet paper! Your pipes (and the sewer system) will thank you. Learn more about what belongs down the drain a… 🚽 3.45%6 174 ocsandistrict Sep 04, 16:30O But for the record, we're OC San. You would know that if you came on a tour 😉 Sign up when you're ready at ocsan.gov/tours ✨6.8%49 1,103 ocsandistrict Sep 01, 16:20O Your next career opportunity awaits 🛠🔬⚙ Join the team that keeps things flowing at ocsan.gov/careers. *Open positions posted in August 2026 3.16%14 474 ocsandistrict Aug 30, 16:10O Beach ready, all the time 🏝⛱ 🌊 Our Ocean Monitoring Team collects weekly water samples along 21 miles of shoreline, keeping it safe, clean, and always ready for you to enjoy. #NationalBeachDay 6.42%33 639 ocsandistrict Aug 28, 16:20O Trickling Filter Media Replacement 🤝 Cool Crane Pics Our Plant No. 1 Trickling Filters are in the middle of an upgrade! We're replacing the media inside these structures, where wastewater trickles over materials that are… 7.61%28 381 ocsandistrict Aug 26, 21:51O Dogs know no county lines! 🐶🐾 OC San and @sandistricts are putting the paw in pawrtnership by coming together for our four-legged friends and a communication brainstorming session. Happy National Dog Day! 5.73%171 3,789 ocsandistrict Aug 26, 16:01O Your TP called. It wants to work at OC San. 🧻 Happy National Toilet Paper Day to one of our favorite 3 P's!6.78%22 516 ocsandistrict Aug 24, 16:01O 1 foot. 90% accuracy 📏1.96%97 6,071 ocsandistrict Aug 21, 16:02O A quick break from your regularly scheduled programming ✈5.68%73 1,533 DATE POST ENGAGEMENT RATE LIKES REACH 5 Post performance - LinkedIn Pages Data from 21 Aug, 2026 to 20 Sep, 2026 Sources Orange County Sanitation DistrictOD Orange County Sanitation District Aug 24, 17:19OD OC San’s Reclamation Plant No. 2 has achieved Cal/VPP STAR status, the highest level of recognition for workplace safety and health management! With Plant No. 1 earning the designation in 2023, this achievement reflect… 7.64%1,545 71 2 Orange County Sanitation District Sep 01, 16:20OD Your next career opportunity awaits 🛠🔬⚙ Join the team that keeps things flowing at ocsan.gov/careers. *Open positions posted in August 2026 5.49%856 5 3 Orange County Sanitation District Sep 18, 20:30OD A year of projects, people, and purpose 💧 Our 2025-26 Annual Report takes a look at the work, ideas, and people behind OC San and how they all come together to make a difference for our community. See what’s been… 5.36%504 9 1 Orange County Sanitation District Sep 02, 21:43OD OC San has once again received the Distinguished Budget Presentation Award from the Government Finance Officers Association for the fiscal years 26-27 and 27-28 budget! This award is the highest form of… 3.4%617 16 1 DATE POST ENGAGEMENT RATE IMPRESSIONS REACTIONS SHARES 6 Article Date Source Link Arizona Yanks Yuma Land Leases From Firm Spreading California Sewage Sludge 9/12/2026 Hoodline https://hoodline.com/2026/09/arizona-yanks- yuma-land-leases-from-firm-spreading- california-sewage-sludge/ Costa Mesa Sanitary District mourns passing of former director Jim Ferryman, 78 9/15/2026 LA Times/Daily Pilot https://www.latimes.com/socal/daily- pilot/news/story/2026-09-15/costa-mesa- sanitary-district-mourns-former-director-jim- ferryman-78 Media Articles September 7 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5141 Agenda Date:10/28/2026 Agenda Item No:11. FROM:Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF SEPTEMBER 2026 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of September 2026. BACKGROUND The Orange County Sanitation District’s (OC San)legislative affairs program includes advocating for policy and legislative priorities,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 ongoing legislative engagement,elected officials may not be aware of OC San’s mission, programs,and projects,or how proposed legislation may impact OC San operations and infrastructure planning. PROPOSED SOLUTION Continue to work with Local,State,and Federal officials to advocate for OC San’s interests and help identify,monitor,and respond to legislation and grant opportunities that 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 10/15/2026Page 1 of 4 powered by Legistar™ File #:2026-5141 Agenda Date:10/28/2026 Agenda Item No:11. RAMIFICATIONS OF NOT TAKING ACTION If OC San does not actively engage with Local,State,and Federal elected officials,legislation could be enacted that adversely impacts OC San and the wastewater industry.Additionally,a lack of engagement may result in missed funding opportunities. ADDITIONAL INFORMATION Activities in September: State Bill Positions In line with our 2026 Legislative and Regulatory Plan, OC San submitted three position letters to the Governor: ·Assembly Bill (AB) 2180 (Ward): Proposition 218 Omnibus Implementation Act - Request for the Governor’s Signature The Proposition 218 Omnibus Implementation Act provides important clarification on how local governments may demonstrate compliance with constitutional requirements governing property related service charges.AB 2180 clarifies that agencies may use reasonable methods,supported by existing or reasonably estimated data,to allocate service costs among parcels.It also confirms that agencies are not required to calculate exact parcel-by-parcel costs and may use uniform or tiered fees for customer classes based on factors such as land use, parcel improvements, or peak demand. ·AB 2777 (House Environmental Safety and Toxic Materials Committee):Clean Water State Revolving Fund -Request for the Governor’s Signature AB 2777 makes important changes to California water quality law that will provide the State Water Resources Control Board with greater flexibility to administer the Clean Water State Revolving Fund (CWSRF),while clarifying the definition of incidental runoff for recycled water uses. This bill would authorize the State Water Board,when administering CWSRF loans,to assess a fee in lieu of interest for financial assistance services.The fee could not exceed the amount of interest that otherwise would have been charged.This approach would give the State Water Board greater flexibility in administering the program.It could also help stabilize and potentially increase CWSRF resources while maintaining attractive,below-market financing for critical water quality infrastructure. ·AB 1621 (Wilson):Planning and Zoning Law:Post entitlement Phase Permits:Housing Accountability Act - Request for the Governor to Veto The bill limits residential building permit applications to two rounds of plan review and restricts agencies’ability to require corrective action or issue stop-work orders when problems are identified during construction. The opportunity to review plans provides an important opportunity to evaluate utility capacity, system impacts,environmental compliance,and other project specific considerations before deficiencies become costly or difficult to correct.These reviews serve an important function in Orange County Sanitation District Printed on 10/15/2026Page 2 of 4 powered by Legistar™ File #:2026-5141 Agenda Date:10/28/2026 Agenda Item No:11. deficiencies become costly or difficult to correct.These reviews serve an important function in protecting public health,safety,and welfare,and evaluating project-specific utility capacity and environmental compliance. State of OC San ·The annual State of OC San took place on Friday,September 18,at OC San Headquarters, welcoming approximately 150 attendees.The event hosted local,state,and federal dignitaries and provided an update on OC San,its accomplishments,and the future direction of the agency.This year,OC San was honored to have former OC San Board Chair and current Deputy Secretary Troy Edgar of the United States Department of Homeland Security as a guest speaker.Deputy Secretary Edgar shared updates on national issues that may affect agencies with critical infrastructure, such as OC San. Upcoming Activities in October: 2027 Legislative and Regulatory Plan ·The Legislative and Regulatory Plan is updated on an annual basis to ensure it coincides with the best interest of OC San.The draft plan for 2027,which is attached to this agenda,is based on feedback received from resident experts,industry contacts,and the Board over the last several months.The final plan will be submitted to the Committee and Board of Directors in November for final adoption. PRIOR COMMITTEE/BOARD ACTIONS N/A CEQA N/A FINANCIAL CONSIDERATIONS All items mentioned are included in OC San’s FY 2026-27 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 ·2027 Draft Legislative & Regulatory Plan ·AB 2180 Sign Request ·AB 2180 Bill Text Orange County Sanitation District Printed on 10/15/2026Page 3 of 4 powered by Legistar™ File #:2026-5141 Agenda Date:10/28/2026 Agenda Item No:11. ·AB 2777 Sign Request ·AB 2777 Bill Text ·AB 1621 Veto Request ·AB 1621 Bill Text ·Presentation - 2027 Draft Legislative and Regulatory Plan ·Presentation - Federal Legislative Update Orange County Sanitation District Printed on 10/15/2026Page 4 of 4 powered by Legistar™ 1 | P a g e TO: Orange County Sanitation District FROM: Eric Sapirstein DATE: September 21, 2026 SUBJECT: Washington Update Following the summer recess, Congress returned on September 14 to advance remaining legislative priorities ahead of the midterm elections. However, this was cut short as Republican leadership announced the House would recess starting September 18. This means the House will be on recess for the next seven weeks. The Senate remains in session until the end of September. As a result, legislative actions were minimal. In general, the legislative activity centered on preparing for the Lame Duck Session when legislation that remains on hold will command congressional attention and House passage of the Water Resources Development Act (WRDA). The following summarizes the status of pending legislative matters of interest to OC San. WRDA of 2026 One of the final actions before recess, the House passed WRDA (H.R. 9497) on an overwhelming bipartisan basis of 415-9. The Senate has yet to schedule Floor action for its WRDA (S. 4949). Due to the differences between the two bills, the House and Senate committee staff are expected to start reviewing the respective bills to identify areas of agreement before a formal conference committee convenes in November. Central to the expected discussions are Senate provisions renewing the Clean Water and Safe Drinking Water Acts’ infrastructure funding programs, as well as cybersecurity provisions to enhance the Water Information Sharing Analysis Center (Water ISAC). Of special note is a provision in the S. 4949 that would make wastewater agencies explicitly eligible to participate in Water ISAC. In addition to these policy issues, it is possible Senator Adam Schiff could seek to amend S. 4949 with his recently introduced cybersecurity legislation that would impose a series of new mandates on the water sector through the Clean Water and Safe Drinking Water Acts. It is important to note that key water sector trade associations have not taken a position on the Schiff cybersecurity bill. 2 | P a g e The bill, S. 5368, would require new monitoring and reporting requirements as well as implementation of more robust resilience planning. Whether Schiff proceeds with an effort to amend WRDA remains an open question, but failing this action, reintroduction would occur next Congress. Fiscal Year 2027 Appropriations: EPA and U.S. Bureau of Reclamation Programs Before recessing for August, Congress gave final passage to a Continuing Resolution (CR), ending speculation on whether a government shutdown would occur on October 1. The action means that when Congress returns to work after the mid- term elections, it will have until December 11 to finalize Fiscal Year 2027 spending bills. As part of the CR, Congress included language prohibiting the implementation of an Office of Management and Budget rule that would place final decisions on agency grants awards in the hands of political appointees. The outcome the elections determining which party controls either chamber will have a significant influence on finding common ground to pass a compromise spending package. However, the pressure to pass an agreement to ensure the enactment of earmarks and ensure that general program priorities are identified are considered incentives to reach a compromise that would avoid the loss of directed project spending and ensure that federal agencies have clear directives on how to spend the funding. House Democrats Unveil Economic and Environmental Policy Menu House Democrats, working with the Sustainable Energy and Environment Coalition (SEEC) Institute, unveiled a comprehensive policy report entitled, the Thriving Economy Project. The report identifies over 800 policy options for Congress to consider to respond to economic and environmental policy challenges during the 120th Congress. The report represents the most comprehensive proposal from congressional Democrats as to how they would govern next Congress if they regain control. It is an aspirational document and not a guaranteed framework for what policies Congress would consider next year. The report spans nine chapters, each dedicated to a specific policy problem category. This includes addressing the backlog of water and wastewater infrastructure investment ranging from federal funding and planning, water supplies, affordability and cybersecurity. Additionally, recognizing wastewater and water infrastructure are critical infrastructure, the report also focuses on the need to increase federal investment to improve system resiliency to ensure continued operations during natural disasters. OC San Federal Legislative Update September 2026 FEDERAL - 119TH CONGRESS H.R. 2766 Special District Fairness and Accessibility Act No Priority No Stance The bill requires the Office of Management and Budget to AI Summary: issue guidance recognizing special districts as local governments for federal financial assistance eligibility, with agencies required to implement and report on compliance within specified timeframes. 04/09/2025Introduced: Rep. Pat Fallon TX-04Sponsor: Latest Actions: 03/18/2026 - Ordered to be Reported (Amended) by the Yeas and Nays: 32 - 8. 03/18/2026 - Committee Consideration and Mark-up Session Held 04/09/2025 - Referred to the House Committee on Oversight and Government Reform. House Oversight and Government Reform CommitteeCommittees: FEDERAL - 119TH CONGRESS H.R. 9497 Water Resources Development Act of 2026 Pro Title: WRDA Revisions No Priority No Stance The Water Resources Development Act of 2026 AI Summary: authorizes improvements to U.S. rivers and harbors, establishes new offices within the Corps of Engineers for inland navigation, water supply, technical assistance, and alternative delivery methods, and includes provisions for contaminated sediment remediation, categorical permissions, and electronic permit tracking. 06/29/2026Introduced: Rep. Sam Graves MO-06Sponsor: Latest Actions: 09/17/2026 - Received in the Senate. 09/16/2026 - Motion to reconsider laid on the table Agreed to without objection. 09/16/2026 - On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 req... House Transportation and Infrastructure Committee, Committees: House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee H.R. 9497 is the House counterpart to S. 4949. Unlike S. 4949, H.R. Why it matters: 9497 is a U.S. Army Corps of Engineers centric bill with no clean water provisions. :Outlook H.R. 9497 must be reconciled with S. 4949 later in the Lame Duck Session,. It is highly likely that the bill's lack of clean water infrastructure funding provisions will be a key focus of any conference committee negotiations on a final compromise bill. Senate support for water infrastructure needs funding is likely to prevail during any conference committee negotiations. S. 4949 includes renewal of key water infrastructure programs including Why it matters: the Clean Water State Revolving Loan Fund program at $3.5 billion annually. The bill also includes provisions to extend programs to fund alternative water supply projects including water recycling. The bill also provides for renewal of water cyber security provisions known as Water ISAC Program that promotes information sharing among water sector agencies, S. 4949 represents the vehicle to maintain a federal partnership with local clean water agencies. Outlook: S. 4949 is expected to receive Senate floor debate during the Lame Duck Session and serve as the bill to compromise with the House counterpart. It is expected that the infrastructure provisions will be agreed upon as part of any final agreement. FEDERAL - 119TH CONGRESS S. 4603 Summary: S. 4603 would create a pilot program to investigate the availability of control and eradication technologies to address the growing threats from the Golden Mussel. A task force would be created FEDERAL - 119TH CONGRESS S. 4949 Water Resources Development Act of 2026 No Priority No Stance The Water Resources Development Act of 2026 AI Summary: authorizes improvements to U.S. rivers and harbors, promotes water resource conservation, and includes provisions for studies, deauthorizations, and infrastructure development across multiple regions. 07/13/2026Introduced: Sen. Shelley Moore Capito WVSponsor: Latest Actions: 07/15/2026 - POLITICO Pro - The Senate Environment and Public Works Committee unanimously approved legislation Wednesday to authori... 07/15/2026 - Placed on Senate Legislative Calendar under General Orders. Calendar No. 457. 07/15/2026 - Committee on Environment and Public Works. Reported by Senator Capito with an amendment in the nature ... Senate Environment and Public Works CommitteeCommittees: Golden Mussel Eradication and Control Act of 2026 No Priority No Stance to develop the demonstration program that would conduct R&D into impacts upon fisheries, water quality, and ecosystems. The task force would also support development of control and eradication methods and plans to address impacts upon public infrastructure among other matters. The program would be targeted to Sacramento-San Joaquin Delta and other waters as determined by the task force. 05/20/2026Introduced: Sen. Adam Schiff CASponsor: Latest Actions: 05/20/2026 - Read twice and referred to the Committee on Environment and Public Works. 05/20/2026 - Introduced in Senate Senate Environment and Public Works CommitteeCommittees: Why it matters: S.4603 is the Senate approach to the investigation and mitigation efforts to address the invasive Golden Mussel that threatens wastewater and water agencies' infrastructure. S. 4603 is similar to H.R.3717 introduced by Harder (D-CA). Outlook: Senate action on the bill is considered highly likely either as a stand alone measure or incorporation into a broader Water Resources Development Act or Clean Water/Safe Drinking Water Acts reauthorization. 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 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 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. 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. We expect that congressional action could later this summer on H.R. 1267 or other initiatives that would address nuisance litigation. 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. 02/13/2025Introduced: Rep. Mike Bost IL-12Sponsor: 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. 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: Final passage of the WIPPES Act is anticipated with the House accepting the Senate passed version to avoid the need for a formal conference committee that would delay final enactment. (see S. 1092 below) 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: 03/24/2026 - Held at the desk. 03/24/2026 - Received in the House. 03/24/2026 - Message on Senate action sent to the House. 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 passed the Seante by unanimous consent. The bill was referred to the House. House action to accept the Senate version of the WIPPES Act is anticipated. House acceptance of the Senate-passed version could occur in June/July. (See above) 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. 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: H.R. 3898 represents a comprehensive Clean Water Act permitting reform Why it matters: bill. Key provisions: Outlook. H.R. 3898's provisions could be incorporated into a broader permitting reform bill that addresses both energy and environmental permit mandates. As of this writing, the Senate Committees on Environment and Public Works and Energy and Natural Resources are negotiating on a bipartisan measure that would enhance prospects of final passage of H.R. 3898's permit terms provisions. FEDERAL - 119TH CONGRESS H.R. 3898 PERMIT Act No Priority No Stance The PERMIT Act amends the Federal Water Pollution AI Summary: Control Act to streamline water quality standards, improve transparency in criteria development, reduce regulatory burdens, and enhance permitting efficiency for infrastructure and agricultural projects. 06/11/2025Introduced: Rep. Mike Collins GA-10Sponsor: Latest Actions: 12/15/2025 - Received in the Senate and Read twice and referred to the Committee on Environment and Public Works. 12/11/2025 - Motion to reconsider laid on the table Agreed to without objection. 12/11/2025 - On passage Passed by the Yeas and Nays: 221 - 205 (Roll no. 330). House Transportation and Infrastructure Committee, Committees: House Transportation and Infrastructure Committee Water Resources and Environment Subcommittee, Senate Environment and Public Works Committee mandates 10 year NPDES permits codifies exemption from WOTUS definition for wastewater and water storage facilities expedites review and approval of section 404 permit applications (dredge and fill) provides ten year general permits for dredge and fill activities with requirement for 2 year advanced notification if permit not to be renewed limits water quality certification reviews to project impacts on water quality (no down stream impacts or non-water quality related impacts) S. 3738 would extend the authorization of the expiring large water recycling projects Why it matters: ($500 million or greater) program. Authorized funding would be $450 million and the program would be extended until 2032. It would also modify the the Title XVI program increasing federal cost share to $50 million, providing $550 million funding authorization and extending program to 2032. A new program authorizing $250 million to support environmental and habitat restoration projects would be available to support the Great Salt Lake and other inland lakes (priority on Central Utah Project. Outlo0k: The legislation was favorably approved by the committee and sent to the Senate floor for debate and a vote. It is anticipated that the bill could become part of a larger western water supply legislative vehicle during the Lame Duck Session. FEDERAL - 119TH CONGRESS S.3738 MORE WATER Act No Priority Support The MORE WATER Act reauthorizes the large-scale AI Summary: water recycling and reuse program, establishes a Water Conveyance Improvement Program, and provides funding for projects that deliver water supply, safe drinking water for low-income communities, and environmental benefits. 01/29/2026Introduced: Sen. Alex Padilla CASponsor: Latest Actions: 09/17/2026 - Placed on Senate Legislative Calendar under General Orders. Calendar No. 652. 09/17/2026 - Committee on Energy and Natural Resources. Reported by Senator Lee with an amendment in the nature of ... 07/29/2026 - Committee on Energy and Natural Resources. Ordered to be reported with an amendment in the nature of a... Senate Energy and Natural Resources Committee, Committees: Senate Energy and Natural Resources Committee Water and Power Subcommittee CALIFORNIA ADVOCACY • FEDERAL ADVOCACY • GRANT WRITING Sacramento • Washington, D.C. Northern California • Central California • Southern California MONTHLY LEGISLATIVE UPDATE To: Orange County Sanitation District From: Townsend Public Affairs Cori Takkinen, CEO Kerri West, Senior Associate Date: September 21, 2026 Subject: September 2026 Monthly Legislative Report STATE UPDATES The 2025–26 Legislative Session concluded at the end of August following a busy final month of hearings, floor votes, and last-minute amendments. Lawmakers considered more than 1,000 measures addressing issues including housing, public safety, labor, environmental policy, infrastructure, and public agency operations. Several measures tracked by OC San advanced to the Governor, including bills with potential impacts on wastewater infrastructure, permitting, fees, and local agency operations. OC San continued advocating for legislation that supports reliable infrastructure, protects local authority, and considers the financial impacts on public agencies and ratepayers. With the legislative session concluded, attention now turns to Governor Newsom, who has until September 30 to sign or veto bills sent to his desk. OC San will continue monitoring final actions and evaluating the potential operational and fiscal impacts of newly enacted legislation. Senate Budget Subcommittee Considers Proposition 4 and Greenhouse Gas Reduction Fund Spending Plans On August 12, the Senate Budget Subcommittee No. 2 held an informational hearing on two issues left unresolved after the June budget agreement: the 2026–27 Proposition 4 expenditure plan and allocations from the Greenhouse Gas Reduction Fund (GGRF). The administration proposes spending $2.25 billion of the $10 billion Proposition 4 climate bond this year. The Legislative Analyst’s Office provided written and oral analyses that found the plan generally reasonable but emphasized the trade-off between quickly funding current projects and preserving resources for future needs. Members of the Committee highlighted Central Valley canal subsidence, Delta levees, coastal erosion, the Los Angeles-San Diego-San Luis Obispo (LOSSAN) rail corridor, Lake Hodges Dam, and wildfire prevention as priorities requiring additional investment, potentially from the two funding sources discussed at the hearing. The subcommittee reviewed a revised Greenhouse Gas Reduction Fund revenue estimate, which dropped from $3.4 billion to approximately $2.73 billion. The Legislative Analyst’s Office cautioned that revenues could decline further, potentially reducing funding available for housing, transit, wildfire resilience, water, and other climate-related programs. Page 2 Lawmakers also debated how projected interest earnings should be used and raised concerns about major funding commitments, including High-Speed Rail. The discussion highlighted growing pressure on available climate funding and the potential for reduced resources across state programs. Public testimony overwhelmingly called for the state to honor its SB 125 transit commitments, preserve the Tier 3 programs established under SB 840 (Limón), and develop a permanent replacement for declining GGRF revenue. Stakeholders also advocated for continued funding for wildfire resilience, safe drinking water, affordable housing, groundwater sustainability, and other climate-related priorities. Future decisions on these revenues could affect funding opportunities for public agencies like OC San, including potential support for innovative biosolids management projects. Wildfire Season & End of Session Escalate Liability Reform Negotiations The Newsom Administration briefed members of the Assembly in early August on a proposal that would limit how much insurers, hedge funds, and attorneys can collect from utility-caused wildfire claims, spurred by threats to the Wildfire Fund’s solvency. The current Wildfire Fund was created in 2019 to reimburse participating investor-owned utilities for eligible wildfire claims, and last year the Legislature approved an additional $18 billion in contributions from utility shareholders and ratepayers following payouts from the Eaton Fire. Earlier this year, the California Earthquake Authority released a study, required by SB 254 (Becker, 2025), that outlined recommended options for restructuring wildfire liability, mitigation, insurance, and recovery. Negotiations have taken on additional urgency after Los Angeles County investigators concluded that electrical arcing from a Southern California Edison transmission tower caused the Eaton Fire, potentially exposing the utility and the fund to billions of dollars in claims. A central issue was California's inverse-condemnation framework and the potential liability utilities face when their equipment causes a fire. The original Administration proposal generated major opposition from local governments because it would have shifted a portion of wildfire losses away from investor-owned utilities and onto cities, counties, special districts, insurers, and ultimately taxpayers/ratepayers. After weeks of opposition and negotiations between the Governor, Senate President pro Tem and Assembly Speaker, the parties announced a compromise on August 29 and amended it into SB 492 (Becker and Petrie-Norris). The most important development for local agencies like OC San was that the final SB 492 removed the major limitations on public-agency recovery. Cities, counties, and special districts would have retained their existing ability to pursue utilities for actual damages, emergency-response costs, and other recoverable losses. Ultimately, negotiations fell through, and the Assembly did not hear the compromised proposal, effectively eliminating the measure for the year. Legislators, utility companies, insurers, and other stakeholders will most likely relaunch negotiations with the incoming Governor and their Administration in the new year. Page 3 Budget Junior Makes Major Investments in California’s Water Resilience AB 113 (Budget Bill Jr.) appropriates a total of $2.66 billion from Proposition 4, the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. Of that amount, $1.05 billion is dedicated to Safe Drinking Water, Drought, Flood, and Water Resilience, including $100 million for the Safe and Affordable Funding for Equity and Resilience (SAFER) program, $12.4 million for Tribal Water Infrastructure, and $64 million for the Multi-benefit Land Repurposing Program to support groundwater sustainability projects. The bill also provides $68 million for regional conveyance projects and repairs, including $30 million to address subsidence affecting State Water Project canals, and $75 million for flood management projects in the Sacramento-San Joaquin Delta, including $30 million for Delta levee repairs. Additional investments include $146.1 million for State Plan of Flood Control projects, $23 million for wildlife refuges and wetland habitat areas, and $8 million in grants to help small farmers comply with the Sustainable Groundwater Management Act. KEY STATE LEGISLATION The following summarizes key legislation and the current status of bills that OC San has taken positions on: OC San staff and Townsend Public Affairs monitor current and upcoming legislation. Per the Board approved Legislative and Regulatory Plan, OC San has submitted five position letters: Assembly Bill 1621 (Wilson) – Planning and Zoning Law: Housing Accountability Act Summary: AB 1621 proposes changes to the post-entitlement permitting process for housing development projects. The bill would limit building permit plan check reviews to two rounds, modify review timelines and related provisions, and restrict agencies from requiring changes during inspections that deviate from previously approved plans unless specified findings are met. Status: On the Governor’s desk. OC San Position: Oppose Unless Amended. Page 24, section K (H) of Legislative and Regulatory Plan Assembly Bill 2180 (Ward) - Proposition 218 Omnibus Implementation Act Summary: AB 2180 clarifies how local governments may demonstrate compliance with the constitutional requirement that fees not exceed the proportional cost of service. The bill allows agencies to use any reasonable method to allocate service costs among parcels, supported by existing or reasonably estimated data. The bill is sponsored by ACWA. Status: On the Governor’s desk. OC San Position: Support. Page 24, section K (h) of the Legislative and Regulatory Plan Assembly Bill 2381 (Johnson) - Local Agency Public Construction Act: Municipal Water Districts: Sanitation Districts: Lowest Responsible Bidder Page 4 Summary: AB 2381 amends the Local Agency Public Construction Act to update competitive bidding requirements for municipal water districts and sanitation districts. Specifically, the measure increases the threshold for public works contracts that must be awarded to the lowest responsive and responsible bidder from $35,000 to $220,000. Status: AB 2381 died in the Assembly and is not moving forward. OC San Position: Support. Page 23 section J (e) of the Legislative and Regulatory Plan and is consistent with previous bill concepts that TPA has discussed with OC San staff and the Board. Assembly Bill 2777 (ESTM Committee) – State Water Pollution Control Revolving Fund program: loans: water reuse Summary: AB 2777, sponsored by CASA and WateReuse, this bill would provide additional flexibility for the State Water Resources Control Board to modernize the Clean Water State Revolving Fund (CWSRF) loan program. The bill would authorize the state board to assess fees in place of an annual charge for financial assistance and would authorize the fees or annual charge to be assessed at any rate as permitted by federal law. Status: On the Governor’s desk. OC San Position: Support an industry coalition letter. Page 23, section D (A) and section E (c) of the Legislative and Regulatory Plan. Senate Bill 1117 (Cervantes) - Accessory Dwelling Units and Junior Accessory Dwelling Units Summary: SB 1117 would restrict how local agencies calculate impact fees for accessory dwelling units (ADUs) by requiring that fees for units exceeding 750 square feet be based only on the portion of the unit above that threshold, rather than the entire unit. TPA was successful in securing amendments that would preserve the ability of local agencies, special districts, and water corporations to charge water and sewer connection fees or capacity charges for ADUs in circumstances where a new/separate connection is allowed, which was a significant win for OC San. Status: On the Governor’s desk. OC San Position: Oppose Unless Amended. Page 24, section K (H) of Legislative and Regulatory Plan OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 35 Alvarez [D]This legislation, would exempt the adoption of regulations needed to effectuate or implement programs of the act from the requirements of the Administrative Procedure Act (APA). The bill would require a state entity that receives funding through Proposition 4 to administer a competitive grant program established using the Administrative Procedure Act exemption to do certain things, including develop draft project solicitation and evaluation guidelines and to submit those guidelines to the Secretary of the Natural Resources Agency, except as provided. The bill would require the Secretary of the Natural Resources Agency to post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agency’s internet website. Signed into law Watch Legislative and Regulatory Policies: Grant Funding – Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. ACC-OC - NYC LOCC - Support CASA - Support CSDA - NYC ACWA - Support AB 634 Gonzalez [R]The legislation intends to add tianeptine to the Schedule I category of controlled substances, reflecting the highest level of legal restriction. This action is intended to limit the potential misuse and abuse of the substance by prohibiting its manufacture and sale unless explicitly allowed. The bill emphasizes the importance of this classification to curb the substance's availability and mitigate associated risks to public health. Dead Watch Legislative and Regulatory Policies Source Control – Support legislation, regulations, and funding assistance that would lead to decreased introduction of microplastics, and other contaminants of concern discharged into the sewer system. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 643 Wilson [D]AB 643 mandates a 75 percent reduction in organic waste disposal to landfills by 2025 to combat methane emissions. The bill tasks the Department of Resources Recycling and Recovery, along with the State Air Resources Board, with formulating associated regulations. Local jurisdictions are empowered to utilize organic materials as agricultural soil amendments to meet these goals, provided they follow specific guidelines. This approach aims to enhance California's climate resilience through sustainable waste management practices. 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 - Watch CASA - Support in concept CSDA - Watch ACWA - NYC AB 748 Harabedian [D]AB 748 authorizes the development and use of preapproved single‑family and multifamily housing plans that local agencies may adopt to expedite housing approvals and reduce duplicative design review. The bill adds Section 65852.29 to the Government Code, allowing a property owner to build housing consistent with a jurisdiction’s preapproved plan without undergoing additional design review, provided the housing meets the criteria of the adopted plan. This aims to accelerate production of housing units while maintaining local standards for design and land use, reducing processing time and cost for both agencies and developers. The bill is intended to support increased housing supply and consistency in planning approaches across jurisdictions. Dead Watch Legislative and Regulatory Policies: Housing & Infrastructure Planning – Support statewide efforts to improve housing production and planning efficiency while protecting local infrastructure planning authority and avoiding unfunded mandates. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 1198 Haney [D]Beginning July 1, 2027, changes in prevailing wages by the Director of Industrial Relations will affect contracts awarded or announced after this date. Affected parties can request a review within 20 days, with a final decision issued within 20 days thereafter. Certain housing projects are exempt from these updates. 09/09/2026 Enrolled and presented to the Governor 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 - NYC ACWA - NYC AB 1337 Ward [D]Gut and amended on June 1. AB 1337 would significantly revise the Information Practices Act of 1977 by removing the exemption for local agencies, expanding the definition of personal information, strengthening notice and conduct requirements, broadening limits on disclosure, and adding discipline and criminal penalties for certain violations. Dead Watch Local Government - 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. ACC-OC - NYC LOCC - Oppose CASA - Oppose CSDA - NYC ACWA - NYC AB 1383 McKinnor [D]AB 1383 revises the pensionable compensation limits for public retirement systems in accordance with federal guidelines starting January 1, 2027. It introduces new retirement formulas for safety members, allowing for collective bargaining agreements to adjust these formulas. This bill supports the alignment of state retirement benefits with federal standards and facilitates negotiation over pension terms. Vetoed Watch Legislative and Regulatory Policies: Labor Relations/Human Resources – Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table ACC-OC - NYC LOCC - Oppose CASA - NYC CSDA - NYC ACWA - NYC AB 1436 Avila Farias [D]AB 1436 would exempted private fleets from the state's clean fleet regulations.Dead Watch Legislative and Regulatory Policies: Air Quality - 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. ACWA-Support CASA-Support CSDA-Support LOCC-Support Proposed Legislation 2026 High Priority OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 1617 Alanis [R]AB 1617 requires public agencies and contractors handling household hazardous waste to submit the Form 303 Household Hazardous Waste Collection Report annually for the prior calendar year, aligning the reporting period with the calendar year. This shift aims to improve the consistency and accuracy of hazardous waste tracking. Signed into law Watch Legislative and Regulatory Policies: Biosolids, Organics, and Biogas – Limit redundant reporting requirements on organics, recyclable material, and solid waste. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 1621 Wilson [D]AB 1621 aims to streamline and speed up the post-approval (post entitlement) permitting process for housing projects by setting clearer rules, firm timelines, and limits on agency reviews. Recent amendments strengthen the bill by capping plan check rounds, shortening appeal timelines, restricting new or changing requirements, and tying violations of these rules to the Housing Accountability Act, making it easier to hold local agencies accountable for delays or noncompliance. 08/31/2026 Enrolled and presented to the Governor Oppose Unless Amended Legislative and Regulatory Policies: Housing & Local Agency Authority – Monitor and assess legislation that affects housing development processes and ensure local agency discretion is preserved in infrastructure planning and project implementation. ACC‑OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 1710 Carrilo [D]AB 1710 redefines the criteria for "ordinances, policies, and standards" within housing development, adding materials, requirements, and standards imposed by other public agencies. It mandates compliance with existing plans and standards at the time of a preliminary application. The bill aligns with the Permit Streamlining Act, requiring projects considered for housing developments or emergency shelters to meet consistency and compliance evaluations. This bill enforces a state-mandated local program impacting all cities, including charter cities, and affects provisions for mandated cost reimbursements to local agencies. Dead 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 - Not Favor Unless Amended AB 1729 Lee [D]AB 1729 revises existing telecommuting provisions by introducing the term "telework" and mandates the Department of General Services to create a dashboard documenting the benefits and savings of state telework programs. Each state agency must evaluate its telework program every 10 years to ensure alignment with operational needs and workforce goals. This bill is labeled an urgency statute for immediate effect and only impacts state agencies. Vetoed 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 AB 1772 Papan [D]AB 1772 aims to address and prevent the proliferation of aquatic invasive species, specifically the golden mussel, within California's water systems. This legislation intends to help safeguard the state's biodiversity and maintain ecological balance by implementing measures to monitor, report, and control the spread of these species in waterbodies and infrastructure systems. Dead Watch Legislative and Regulatory Policies: Water Quality & Ecosystem Protection – Support measures that control invasive species and protect California water systems. ACC-OC - NYC LOCC - NYC CASA - Support CSDA - NYC ACWA - SIA AB 1777 Garcia [D]AB 1777 would amend the Health and Safety Code to explicitly authorize the California Air Resources Board (CARB) to adopt regulations to reduce or mitigate emissions from indirect sources of air pollution, such as facilities, land uses, and activities that attract mobile emission sources like trucks, trains, and other vehicles. The bill clarifies that CARB can take this action when necessary to achieve ambient air quality standards required under federal law, expanding the agency’s authority beyond current direct vehicle emissions regulation. It aims to fill gaps where regional indirect source rules have been adopted locally but no consistent statewide mechanism exists to reduce pollution from high‑traffic indirect sources. Dead Watch Legislative and Regulatory Policies: Air Quality & Environmental Protection – Support measures that strengthen air quality protections while minimizing undue regulatory or operational impact on local agencies. ACC‑OC - NYC LOCC - Watch CASA - NYC CSDA - NYC ACWA - NYC AB 1821 Pacheco [D]AB 1821 allows agencies to charge fees for time spent searching for public records beyond certain thresholds and updates response timelines to business days. Recent amendments refine the fee structure, clarify exemptions, and adjust response and extension periods. 08/31/2026 Enrolled and presented to the Governor Watch Legislative and Regulatory Policies: Public Transparency and Governance – Support policies that promote transparency and accountability in public agency operations while ensuring administrative requirements remain reasonable for local agencies. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 1838 Berman [D]AB 1838 requires contractors bidding on public works projects to disclose any past wage-and-hour violations and demonstrate corrective actions. Recent amendments clarify disclosure requirements, documentation standards, and allow disqualification for noncompliance. 09/04/2026 Enrolled and presented to the Governor Watch Legislative and Regulatory Policies: Public Contracting Transparency – Support policies that enhance transparency and accountability in public contracting while ensuring competitive and equitable procurement processes. ACC‑OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 1898 Schultz [D]This legislation mandates that employers must inform employees about the use of AI tools in decisions affecting employment and worker surveillance activities.Notifications must specify the impacted employment decisions,and employers are required to maintain an updated list of AI tools used,which should be provided annually to employees.Enforcement includes penalties for non-compliance,reviewable through the Labor Commissioner or via civil action by affected workers. Dead Watch Guiding Priorities: Oppose redundant regulatory and legislative requirements that impose excessive limitations on effective operations; ACC‑OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 1997 Lee [D]AB 1997 requires a lead agency to approve or disapprove a housing development project where 90 percent of the units are affordable to very low or extremely low income households within 30 days of certifying an environmental impact report (EIR), and establishes a working group to make recommendations on the most effective ways to expedite the development of housing. 08/31/2026 Enrolled and presented to the Governor. Watch Legislative and Regulatory Policies: Local Agency Authority & Infrastructure – Support policies that affirm local control and clarity in agency operations affecting infrastructure development and system management. ACC‑OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Watch AB 2013 Bennett [D]AB 2013 requires specified community water systems located in high or very high fire risk areas to provide an annex to their disaster preparedness plans that includes specified information relating to system preparedness and resiliency during a wildfire. Dead Watch Legislative and Regulatory Policies: Disaster Preparedness – Support legislation that improves emergency preparedness and infrastructure resilience to protect critical water and wastewater services during disasters. ACC-OC - NYC LOCC - NYC CASA - Support CSDA - NYC ACWA - OUA AB 2026 Aguiar-Curry [D]AB 2026 expands and streamlines the process for diverting flood flows for groundwater recharge by broadening eligibility, expediting permitting, and exempting certain projects from CEQA. Recent amendments further expand the definition of flood flows, remove prior sunset limits, allow private entities to participate with groundwater agencies, and establish clearer permitting timelines and criteria. Dead Watch Legislative and Regulatory Policies: Water Supply and Resource Management – Support policies that improve water supply reliability and sustainable groundwater management across California. ACC-OC - NYC LOCC - NYC CASA - Support CSDA - NYC ACWA - Support AB 2125 Bennett [D]AB 2125 enhances the requirements imposed upon a plaintiff when filing a notice of completion of the mailing when conducting the specialized service of process provisions utilized in comprehensive groundwater adjudications. Signed into law Watch Legislative and Regulatory Policies: Water Resources Administration – Support policies that improve transparency and accountability in water rights and groundwater basin management. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Watch AB 2127 Johnson [D]AB 2127 prevents local governments from prohibiting the construction of new accessory dwelling units (ADUs) in an area solely because the lots are served by private sewage disposal systems. Dead Watch Legislative and Regulatory Policies: Regulatory Reporting & Transparency – Oppose proposals that create redundant reporting requirements that do not yield commensurate public benefit and impose unnecessary administrative burden on local agencies. ACC‑OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 2180 Ward [D]AB 2180 updates the Proposition 218 Omnibus Implementation Act by clarifying that local agencies can use any reasonable method to show that property-related fees reflect the cost of service, rather than needing exact calculations for each parcel. It also confirms that water and sewer agencies can use uniform or tiered rates based on customer characteristics, and gives agencies flexibility to allocate costs within those tiers using reasonable approaches, as long as rates do not exceed the cost of providing service. 08/25/2026 Enrolled and Presented to the Governor. Support Legislative and Regulatory Policies: Local Agency Authority – Support policies that protect local agencies’ ability to set rates and fees necessary to provide essential wastewater and water services. ACC-OC - NYC LOCC - Support CASA - NYC CSDA - NYC ACWA - Support/Sponsor AB 2381 Johnson [D]AB 2381, introduced by Assembly Member Natasha Johnson, aims to amend the Local Agency Public Construction Act to increase the threshold for contracts awarded by municipal water districts and sanitation districts to the lowest responsible bidder from $35,000 to $220,000. The bill mandates the Controller to adjust this amount annually to reflect the percentage change in the Engineering News-Record Construction Cost Index and publish the adjusted amount on its internet website. Dead Support Legislative and Regulatory Policies: Public Contracting – Procurement & Fair Practices – Support fair and effective public contracting standards that enhance local agency competitiveness while preserving transparency and accountability. ACC‑OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC AB 2447 Bauer-Kahan [D]AB 2447 creates the Nitrogen Pollution Reduction Act. Requires the State Water Resources Control Board (State Water Board) to require the Regional Water Quality Control Boards (Regional Water Boards) to update the Irrigated Lands Regulatory Program (ILRP) in order to reduce nitrogen waste discharges from commercial irrigated agricultural lands so that by January 1, 2030, those lands do not cause or contribute to exceedances of the maximum contaminant level (MCL) for nitrate, or exceedances of a water quality objective or total maximum daily load (TMDL) for nitrate. Dead Watch Legislative and Regulatory Policies: Water Quality & Ecosystem Protection – Support policies promoting nutrient management, water quality, and sustainable agriculture. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Oppose AB 2568 Johnson [D]AB 2568 reduces the maximum number of days water district board members may be compensated each month, from 20 days to 15 days. Recent amendments clarify this limit by revising prior proposed changes to board compensation caps. 08/28/2026 Enrolled and Presented to the Governor. Watch Legislative and Regulatory Policies: Governance & Compensation – Support policies aligning compensation with board responsibilities. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Favor AB 2630 Bennett [D]AB 2630 requires the State Water Resources Control Board to continue adopting water diversion measurement and reporting regulations as emergency regulations through January 1, 2032. Recent amendments extend this requirement and maintain CEQA exemptions for those regulations. Dead Watch Legislative and Regulatory Policies: Water Resources Administration – Support policies that streamline water regulation and protect water supply reliability. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Oppose OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS AB 2656 Petrie-Norris [D]AB 2656 requires a public employer shall provide a recognized employee organization no less than 45 days’ written notice before taking an action to develop, purchase, implement, or utilize any generative artificial intelligence to perform a service that is within the scope of work of the job classification represented by the recognized employee organization 08/31/2026 Enrolled and presented to the Governor. Watch Guiding Priorities: Oppose redundant regulatory and legislative requirements that impose excessive limitations on effective operations; ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - Oppose ACWA - NYC AB 2777 Environmental Safety and Toxic Materials [Committee] AB 2777 authorizes the State Water Resources Control Board (State Water Board), when administering loans under the Clean Water State Revolving Fund (CWSRF), to assess a fee instead of interest (also known as fee in lieu of interest) for financial assistance services rendered under the CWSRF, and makes a technical change to recently enacted legislation dealing with recycled water. 08/31/2026 Enrolled and presented to the Governor. Support Legislative and Regulatory Policies: Water Quality & Funding – Support policies promoting accountability in water quality financing. ACC-OC - NYC LOCC - NYC CASA - Sponsor CSDA - NYC ACWA -Favor SB 342 Umberg [D]SB 342 revises the Contractors State License Law, enabling contractors to claim compensation for work if properly licensed during contract execution, even if unlicensed at other times. It allows clients to recover payments made to unlicensed contractors based on the period the contractor was unlicensed. 09/08/2026 Enrolled and Presented to the Governor. Watch Legislative and Regulatory Policies: Public Contracting – Support legislation that protects local agency contracting integrity. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC SB 601 Allen [D]SB 601 seeks to restore California water-quality protections for certain streams, wetlands, and other “nexus waters” that lost federal protection following the U.S. Supreme Court’s Sackett v. EPA decision. The bill would expand the State Water Resources Control Board’s authority to regulate discharges into these waters under the Porter-Cologne Water Quality Control Act and establish applicable water-quality standards and permitting requirements. Dead Watch Legislative and Regulatory Policies: Water Quality and Supply - Support streamlined environmental guidelines and regulations which would safeguard the region, providing increased protection and lesser costs to ratepayers. LOCC-Oppose CASA-Oppose CSDA-Oppose ACWA-Oppose SB 899 Grove [D]SB 899 requires the Wildfire and Forest Resilience Task Force to coordinate with health agencies to evaluate the health impacts of severe wildfire smoke by July 1, 2028, utilizing existing data. The findings will guide the enhancement of health outcomes in the Wildfire Resilience Action Plan and allow for independent consultancy contracts as necessary. Dead Watch Legislative and Regulatory Policies: Disaster Preparedness – Support policies that improve wildfire resilience and public health outcomes. ACC-OC - NYC LOCC - Support CASA - NYC CSDA - NYC ACWA - Support/Sponsor SB 951 Reyes [D]SB 951 establishes the California Worker Technological Displacement Act, requiring employers to provide advance notice and protections for workers impacted by AI-related job loss. Recent amendments clarify notice requirements, expand worker protections during the notice period, and refine enforcement and penalty provisions. 09/09/2026 Enrolled and presented to the governor. Watch Legislative and Regulatory Policies: Labor Relations – Support policies ensuring worker notification and protections. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC SB 992 Niello [R]SB 992 addresses the auditing process for special districts, removing the January 1, 2027, repeal date for certain auditing exceptions. It increases the financial threshold from $150,000 to $250,000, allowing districts with annual revenues below this amount to replace an annual audit with a financial review, agreed-upon procedures, or a financial compilation. Signed into law Watch Legislative and Regulatory Policies: Governance & Finance – Support policies that streamline audits while maintaining accountability. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC SB 1001 Archuleta [D]SB 1001 requires the Office of Emergency Services to create a standardized identification card (PIV-I credential) program for water utility workers to help them access restricted areas during emergencies. Recent amendments clarify the program’s structure, align it with federal credentialing standards, allow agencies to request cards for qualified personnel, and ensure cardholders can enter closed disaster areas unless safety concerns prevent it. Dead Watch Legislative and Regulatory Policies: Disaster Preparedness – Support programs that improve water utility safety during emergencies. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Favor SB 1036 Grayson [D]SB 1036 modifies the Mitigation Fee Act to require that development impact fees be based on a project’s net impact. Recent amendments require local agencies to reduce or offset fees when a project replaces or demolishes an existing use so that fees reflect only the incremental impact on public facilities. Signed into law Watch Legislative and Regulatory Policies: Development & Land Use – Support policies that ensure fair fee assessment. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC SB 1081 Laird [D]SB 1081 expands an existing exception to mandatory water quality penalties by allowing more small, financially disadvantaged publicly owned treatment works to fund compliance projects instead of paying fines. Recent amendments broaden eligibility to include systems serving 3,000 or fewer people and clarify hardship criteria. Dead Watch Legislative and Regulatory Policies: Water Quality & Compliance Flexibility – Support policies that improve regulatory flexibility and compliance mechanisms for wastewater systems, particularly in ways that enable small systems to invest in infrastructure rather than non‑productive penalties. ACC‑OC - NYC LOCC - NYC CASA - Support CSDA - NYC ACWA - Favor OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 1085 Durazo [D]SB 1085 requires cities and counties to identify applicable public water systems earlier in the housing development process and to request water supply information shortly after an application is submitted. Recent amendments accelerate timelines by requiring water systems to provide water supply assessments within 45 days for certain housing projects, remove the need for public meeting approval, and allow cities or counties to take legal action if assessments are not provided on time. 09/03/2026 Enrolled and presented to the Governor. Watch Legislative and Regulatory Policies: Water Supply & Project Planning – Support policies that improve water system planning and assessments. ACC-OC - NYC LOCC - Track CASA - NYC CSDA - NYC ACWA - Favor SB 1117 Cervantes [D]SB 1117 focuses on accessory dwelling units (ADUs) and junior accessory dwelling units, refining the calculation of impact fees. It mandates that fees for ADUs over 750 square feet be based solely on the area exceeding this threshold, altering local agencies' responsibilities and overriding municipal affairs to ensure statewide applicability. The bill stipulates no state reimbursement for local costs incurred due to these changes. 08/30/2026 Enrolled and presented to the Governor. Oppose Unless Amended Legislative and Regulatory Policies: Housing – Support policies that improve equity in ADU fee structures. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC SB 1125 Menjivar [D]SB 1125 mandates the State Water Resources Control Board to devise an annual needs assessment for drinking water by May 1, 2027, and every year afterwards. This includes evaluating the funds required to maintain affordable water services for community systems with fewer than 3,000 connections, updating this analysis every three years. 08/31/2026 Enrolled and presented to the Governor. Watch Legislative and Regulatory Policies: Water Supply – Support policies ensuring safe, reliable drinking water. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Support SB 1139 Laird [D]SB 1139 gives the Monterey Peninsula Water Management District authority to enforce an existing prohibition against the use of potable water for the irrigation of nonfunctional turf located on commercial, industrial, and institutional properties, and on properties of homeowners’ associations, common interest developments, and community service organizations establishes the Water Rate Assistance Program, administered by the State Water Resources Control Board (State Water Board), to provide rate assistance for drinking water services to low-income residential ratepayers. Signed into law Watch Legislative and Regulatory Policies: Water Conservation – Support policies enforcing potable water conservation. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Favor SB 1153 Caballero [D]SB 1153 requires urban retail water suppliers in high fire risk areas to update their disaster preparedness plans to include specific wildfire response and mitigation strategies. Recent amendments clarify that these requirements are focused on planning (not guaranteeing water service during fires) and provide liability protections by stating that water systems are not responsible for wildfire damages due to loss of pressure or supply, and are not required to function as firefighting systems. 9/8/2026 Enrolled and presented to the Governor Watch Legislative and Regulatory Policies: Disaster Preparedness – Support policies enhancing water supplier wildfire response. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Support/Sponsor SB 1159 Cabaldon [D]SB 1159 specifies that nonhuman entities, including AI and robots, are excluded from definitions in key legislative acts concerning public access and participation, such as the California Public Records Act and the Political Reform Act. The goal of this legislation is to preserve human-centric interactions in California’s democratic institutions and not overwhelm public agencies by protecting public resources from being consumed by machine-generated requests. 08/26/2026 Enrolled and presented to the Governor. 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 - NYC CSDA - NYC ACWA - NYC OC San State Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OC SAN POSITION LEGISLATIVE PLAN OTHER POSITIONS SB 1187 Durazo [D]As amended, SB 1187 would repeal the language access requirements enacted through SB 707 before they take effect on July 1, 2026. Specifically, the bill removes requirements that certain cities, counties, and special districts translate meeting agendas into specified languages, translate public meeting webpages and related materials, provide assistance for public interpretation and translation at meetings, conduct outreach targeted toward non-English-speaking communities, and implement several other related language access and public participation requirements. Signed into law Watched Guiding Priorities: Oppose redundant regulatory and legislative requirements that impose excessive limitations on effective operations; ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - NYC SB 1313 McNerney [D]SB 1313 expands funding opportunities for projects that address PFAS contamination in drinking water by allowing grants and loans through existing state and federal funding sources. Recent amendments refine the measure to focus funding specifically on public water systems, clarify eligible activities (like treatment, testing, and planning), and allow implementation through a policy handbook rather than formal rulemaking, streamlining how the program is carried out. Dead Watch Legislative and Regulatory Policies: Water Quality & Contaminants – Support policies addressing PFAS in drinking water. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA - Support SB 1417 Pérez [D]SB 1417 prohibits mutual water companies from charging tenants for water service and requires charges to be directed to shareholders, while establishing notice and public meeting requirements before certain assessments or rate increases. Recent amendments also require disaster- impacted public water systems to complete a disaster impact assessment within six months of an emergency, including evaluating system damage, water supply reliability, affordability impacts, and whether consolidation with another system may be necessary, as a condition of receiving state funding. 08/30/2026 Enrolled and presented to the Governor. Watch Legislative and Regulatory Policies: Disaster Preparedness – Support policies improving post- disaster water system assessment and recovery. ACC-OC - NYC LOCC - NYC CASA - NYC CSDA - NYC ACWA -Favor 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 CSDA - California Special Districts Association 1 | P age TO: Orange County Sanitation District FROM: Whittingham Public Affairs Advisors DATE: September 21, 2026 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: • GKN Aerospace announced a compensation program of up to $100 million for the more than 50,000 residents and local businesses across six cities that were forced to evacuate over Memorial Day weekend after a failing chemical tank at the company’s Garden Grove plant released potentially toxic and volatile methyl methacrylate. GKN has been working with the District Attorney’s Office and expects to launch the compensation program in early October. Additional details will be announced about community events, phone banks, and a physical location where individuals can submit claims and obtain information. The program will allow businesses and residents to recover evacuation-related costs, including hotel stays, lost wages, meals, and transportation. • Lisa Kim, who has served as Garden Grove City Manager since March 2023, announced her retirement effective in early November. The Garden Grove City Council has selected Assistant City Manager Matt West to succeed her. West previously served as City Manager for the City of Tustin. • The cities of Anaheim and Placentia are in the midst of considering potential candidates for their respective leadership positions. Since February, Assistant City Manager Greg Garcia has served as Interim City Manager in Anaheim, and longtime Costa Mesa City Manager Tom Hatch is serving as Interim City Administrator in Placentia. • The County of Orange proclaimed a state of local emergency in the wake of Hurricane Marie, which brought high surf and rain to Southern California over Labor Day Weekend. The County’s proclamation, due to be ratified by the Board of Supervisors at a special meeting, followed declarations of local emergencies by the cities of San Clemente, Dana Point, and Laguna Beach. 2 | P age High tides caused by the hurricane created significant erosion to the beaches, putting waterfront houses in danger and damaging infrastructure in numerous coastal communities from San Clemente to Newport Beach. It is also anticipated that a Kelvin wave, a slow-moving, large-scale ocean wave driven by El Niño that is currently traveling up the Pacific coast toward Southern California, will raise local sea levels by 6 to 12 inches in early October, potentially causing additional damage. • The Costa Mesa City Council unanimously approved a plan for the former Fairview Developmental Center that includes 2,300 new homes, 920 of which would be affordable. The approval concludes a four-year planning process and will help Costa Mesa work toward its state-mandated goal of 11,760 new housing units by 2029. The city was one of five California cities sued by the State Attorney General over alleged noncompliance with Housing Element Law. The final plan reduced the amount of housing proposed in an earlier Planning Commission-approved draft, which allowed for up to 4,000 units on the 80-acre site. Council members cited concerns about traffic, public safety, and impacts on surrounding neighborhoods. • Irvine Ranch Water District’s (IRWD) Board of Directors interviewed four candidates to fill the vacant 1st District seat, which includes portions of Irvine, Lake Forest, Orange, and unincorporated Orange County. The Board ultimately voted to appoint Cindy Miller, a licensed civil engineer and Vice President at Hazen and Sawyer with extensive prior project experience working with IRWD on a variety of projects. Ms. Miller will serve as the Division 1 Director for the remainder of the term, which runs through November 2028. • The Santa Ana Regional Water Quality Control (SARWQC) Board approved comprehensive new regulations that are intended to reduce pollution in water from storm drains and flood control channels in the Santa Ana River Basin, which covers large parts of Orange and the Inland Empire counties. The agency’s new regulations, known as the Regional MS4 Permit, will impact Orange, Riverside and San Bernardino counties. When implemented, the new regulations will require local government agencies to implement systems to keep trash and other contaminants from polluting the waterway. The regulations are scheduled to take effect in March 2027. The SARWQC Board approved the permit on a 3-1 vote after hours of discussion about the cost and feasibility of compliance. San Bernardino County had commissioned an analysis estimating that the proposed stormwater requirements would cost the county and 16 of its cities $11 billion over the next 20 years. 3 | P age • Several Orange County cities are considering restrictions on herbicide use in public spaces amid concerns about potential health effects raised in Ladera Ranch. The City of Newport Beach has stopped using synthetic herbicides to control weeds on city- maintained athletic fields, relying instead on organic treatments, mechanical weed removal, and periodic replacement of the grass. The City’s new Athletic Field Sod Management Program calls for athletic fields to be stripped, leveled, and covered with new sod approximately every three to five years, depending on their condition and amount of use. • The Newport Beach City Council was ordered by an Orange County Superior Court judge to run a special election concurrent to the November 3 general election. Three resident-initiated ballot measures will appear on the special election ballot, which will be administered by the Newport Beach City Clerk rather than the Orange County Registrar of Voters. The general election ballot in Newport Beach will include the candidates seeking election to City Council, as well as The Responsible Housing Initiative, which if approved would implement a new housing plan that zones for fewer new homes, which could put the city at risk of a lawsuit from the State of California. 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 1 2 Table of Contents Legislative & Regulatory Advocacy Teams ................... 3 Introduction ................................................................. 4 Procedures for Establishing an OC San Position ………… 5 Guiding Priorities .......................................................... 6 Advocacy Initiatives and Tactics ................................... 6 Legislative and Regulatory Policies .............................. 8 3 Legislative & Regulatory Advocacy Teams OC San Legislative Advocacy Team Rob Thompson General Manager (714) 593-7110 rthompson@ocsan.gov Jennifer Cabral Director of Communications (714) 593-7581 jcabral@ocsan.gov Daisy Covarrubias Public Affairs Supervisor (714) 593-7119 dcovarrubias@ocsan.gov Rebecca Long Principal Public Affairs Specialist (714) 593-7444 rlong@ocsan.gov Kelly Newell Public Affairs Specialist (714) 593-7102 knewell@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 Kerri West Townsend Public Affairs (916) 447-4086 kwest@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 mkawamoto@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 Jamie Valencia Chair City of Fullerton Jose Medrano Vice Chair City of La Habra Debbie Baker Member-at-Large City of La Palma Ted Bui Member-at-Large City of Fountain Valley Melinda Liu Member-at-Large City of Irvine 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 Jordan Wu Member-at-Large City of Villa Park Jon Dumitru Board Chairman City of Orange Christine Marick Board Vice Chairwoman City of Brea 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 OC San and its ratepayers are effectively represented and supported. The legislative and regulatory teams actively engage, pursue, and monitor activities in California and Washington, D.C. to take appropriate action that aligns with OC San’s goals. Annually, the Board of Directors (Board) adopts a Legislative and Regulatory Plan (Plan) that summarizes 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 Plan is an evolving document, which is adopted and revised each year to ensure its alignment with changes in local, state, and federal policies. Consistent with the Plan and the legislative strategy, the Legislative and Regulatory teams may prepare position letters, advocate for OC San, and/or provide commentary on proposed legislation and regulations. 5 Procedures for Establishing an OC San Position 1.The Legislative and Regulatory teams 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). 2.For bills and proposed regulations that are under active review and for which explicit policy guidance is provided in the current Plan, the Legislative Advocacy teams and Regulatory Advocacy teams are authorized to submit comment letters consistent with the approved OC San position to legislators and regulators, as well as direct lobbyists to advocate for that position. 3.The Regulatory team within the Environmental Services Department will evaluate proposed regulations against the Board-approved criteria outlined in the current Plan. If the proposed position aligns with these criteria, the team will collaborate with relevant member associations to present a unified position. When appropriate, member association(s) may take the lead and advocate on behalf of OC San; otherwise, OC San will submit a comment letter directly. This will be decided by the Regulatory team with input from the Public Affairs Office. Additionally, the Regulatory team will work directly with OC San’s Director of Communications and other managers as appropriate when crafting an official comment letter. 4.For legislative issues that are not time-sensitive, the legislative letter will be personally signed by the Board Chair or Vice-Chair. In cases involving urgent legislative or regulatory matters, the Legislative and Regulatory teams may use an electronic signature, provided there is a clear policy direction, and approval has been obtained from the General Manager, or their designee. 5.If a bill does not fall within the scope of the Plan or is a controversial issue, staff will seek guidance and direction from the Administration Committee. 6.If a bill does not fall within the scope of the Plan, but organizations such as ACC-OC, CASA, CWSC, CSDA, and / or NACWA have adopted a unified position, staff may follow the adopted position and inform the Administration Committee of such action at the next regularly scheduled meeting. 6 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 congressionally or legislatively directed funding. The advocacy strategy focuses on a coordinated, proactive approach to securing funding, shaping policy, and advancing OC San’s infrastructure and sustainability priorities at both the federal and state levels. At the federal level, the emphasis is on building strong relationships with agency officials, Congress, and key committees through regular meetings in Washington, D.C. and district offices, while clearly communicating OC San’s priorities through updated project lists, white papers, and testimony. Key actions include advocating for expanded infrastructure funding (including State Revolving Funds (SRFs) and innovative financing tools), advancing energy recovery and water reuse initiatives, supporting favorable tax and resiliency policies, and streamlining permitting processes. Engagement with national associations and federal regulators is critical to influence legislation, secure funding opportunities, and reduce regulatory burdens. At the state level, the strategy centers on continuous legislative and regulatory monitoring, targeted advocacy, and strategic alignment of projects with funding opportunities. This includes maintaining an active presence in Sacramento through advocacy days, meetings with legislators, regulators, and stakeholders, and participation in key industry committees. Efforts prioritize identifying and influencing legislation, securing funding through bonds, Cap-and-Invest, and energy programs, and advancing policies that support biosolids management, renewable energy, and operational flexibility. Ongoing outreach and briefings to the local delegation, coalition-building with partner agencies, and coordinated advocacy aligned with funding cycles and project timelines ensure sustained visibility and competitiveness for OC San’s priorities. Advocacy Initiatives and Tactics The state and federal advocacy focuses on positioning OC San to secure flexible funding for critical infrastructure, while advancing innovation, regulatory efficiency, and long-term resiliency. OC San’s federal initiatives include: 1.Identify and seek federal funding assistance to support OC San infrastructure priorities. 2.Advocate and support cost effective policies that support resource recovery from biosolids and organic waste. 3.Advocate for increased infrastructure investment, including robust SRF funding, revised allocation formulas, and expanded innovative financing tools. 4.Promote regulatory streamlining to accelerate project delivery and reduce administrative burdens. 5.Support federal tax policies that protect public agencies and preserve tax-exempt and other financing mechanisms. 7 6.Advance resiliency policies and improve permitting processes to protect OC San’s assets and to support water recycling and biosolids management. 7.Conduct regular advocacy and outreach meetings to communicate OC San priorities and project updates to policymakers and stakeholders. OC San will advance these initiatives through a coordinated federal advocacy strategy centered on direct engagement, coalition-building, and targeted policy development. This includes maintaining a strong presence in Washington, D.C. and in district offices by regularly meeting with federal agencies, congressional offices, and key committees to communicate OC San’s priorities, refine funding requests, and build support for infrastructure, energy recovery, and resiliency projects. Supporting these efforts, OC San will develop and disseminate clear advocacy materials, such as priority lists, white papers, and formal testimony, to strengthen the case for federal investment and policy changes. Additionally, OC San will work collaboratively with national associations, regional partners, and federal agencies to advance innovative financing mechanisms, promote regulatory streamlining, and shape legislation and programs related to water quality, resilience, energy, and biosolids treatment and management. This includes advocating for expanded financing tools, tax policy protections, and expedited environmental review and permitting processes, while engaging in ongoing dialogue with regulators to address permitting challenges and improve program implementation. Through consistent outreach, strategic partnerships, and proactive advocacy, OC San will position its priorities for success in federal funding, policy, and regulatory decisions. OC San’s state initiatives include: 1.Develop and implement a proactive legislative and regulatory advocacy agenda aligned with OC San priorities. 2.Maintain a comprehensive, ready-to-deploy list of Capital Improvement Projects to support funding pursuits. 3.Monitor and pursue diverse funding opportunities, including statewide bonds, Cap-and-Invest programs, and resource recovery funding. 4.Conduct regular advocacy and outreach meetings to communicate OC San priorities and project updates to policymakers and stakeholders. 5.Advocate for cost effective regulations that allow continued responsible ocean discharge based on sound science. 6.Advocate for cost effective regulations based on sound science that protect OC San’s infrastructure investments. 7.Advance legislative and policy reforms to support biosolids management and improve operational efficiency, including streamlining bid requirements and increasing contracting thresholds. 8.Advocate for the establishment and implementation of a statewide biosolids land application management policy. 9.Support legislative changes to eliminate outdated and costly bid advertising requirements. 10.Support higher contracting and bid limits to make project delivery more efficient and flexible. 8 OC San will implement these initiatives through a comprehensive and proactive state advocacy program that integrates legislative tracking, strategic engagement, and targeted funding alignment. This includes continuously monitoring and analyzing legislation, regulations, and funding programs to identify opportunities and risks, while maintaining a dynamic tracking system to prioritize actions. OC San will align its capital improvement program with available funding sources by identifying eligible projects, shaping grant guidelines, and coordinating advocacy efforts around key funding opportunities, including energy, climate, and Cap-and-Invest programs. OC San will maintain visibility in Sacramento and the region by meeting regularly with legislators, regulators, and stakeholders, and participating in industry associations and policy committees. Coalition- building with agencies, industry groups, and labor stakeholders will strengthen advocacy, foster policy solutions, and build consensus. Ongoing outreach and formal communications will help the agency influence policy and funding decisions, keeping its projects competitive and interests well-represented. OC San’s local initiatives include: 1.Continue to develop local government outreach and awareness of OC San. OC San will maintain active engagement at the local level by monitoring meetings and actions of key agencies, including county, city, and special district bodies, to identify issues that may impact its policies, programs, or budget. It will support these efforts by preparing targeted messaging and talking points for public forums and decision-making venues, while also facilitating and participating in meetings with public agency representatives and regional water industry stakeholders to strengthen coordination, share information, and advance OC San’s priorities. A.Air Quality: ’s ’ Legislative and Regulatory Policies 9 f.Oppose air quality regulations that mandate specific fuel types or neglect the significant benefits of renewable fuels. g.Oppose air quality policies, rules, and regulations at Title V facilities that disregard the importance of wastewater treatment as an essential public service. h.Oppose South Coast Air Quality Management District (SCAQMD) policies, rules, and/or regulations on Cumulative Impacts from Air Toxics for the California Environmental Quality Act projects. i.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 requirements. j.Adhere to OC San’s odor policy and level of service to assure OC San is a good neighbor to the surrounding communities. k.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 Publicly Owned Treatment Works (POTWs), process Boilers, and Reciprocating Internal Combustion Engines (RICE) located at an area source. l.Monitor SCAQMD’s Priority Reserve Bank for impacts transcending from the sunsetting of the Regional Clean Air Incentives Market (RECLAIM) program. Oppose any SCAQMD rules proposing to cease or limit future emission reduction credit deposits into the Priority Reserve bank. m.Monitor and support enhancements to SCAQMD permitting procedures to ensure prompt review and approval of permit applications. n.Monitor SCAQMD for any proposed modifications to their risk mitigation procedures, requirements for public notification thresholds, limits set by Rule 1401, analyses related to criteria pollutants, and impacts on greenhouse gases. o.Monitor and oppose any air quality legislation or SCAQMD regulations requiring fenceline monitoring for pollutants of concern, including hydrogen sulfide, at POTWs having a design capacity of ≤425 MGD. p.Monitor air quality legislation 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. Oppose measures that require special districts and local governments to be early adopters of this unproven technology. q.Monitor and contribute feedback on SCAQMD’s Community Emissions Reduction Plans and the Community Air Monitoring Plans. 10 r. Monitor SCAQMD’s development of rules and policies, such as Rule 317.1, that will require major stationary sources 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 and support any legislative development that would provide relief from restrictions on the use of diesel emergency power generators during State of Emergency events and Public Safety Power Shutoff (PSPS) events affecting the local electrical utility. u. Monitor the development of state and local rules and regulations proposing to eliminate or limit the use of emergency standby internal combustion engines. v. Participate in association efforts to work with CARB and the local air district in the implementation of 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 Air Quality Management Plan (AQMP). w. Participate in SCAQMD’s implementation of the provisions in the 2022 AQMP. Oppose potential measures that place additional burdens on resource recovery operations generating renewable energy. B. Biosolids, Organics and Biogas: OC San supports legislation that provides continued biosolids management options that include, but are not limited to, beneficial reuse, carbon sequestration, and destruction technologies, that is implemented in a cost-effective manner while protecting public health and the environment. a. Support legislation, regulations, and policies, including guidance 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, and wetland restoration. b. Support legislation, regulations, and policies that recognize and promote carbon sequestration through land application of biosolids and deep well injection. c. Support legislation, regulations, and policies that allow local jurisdictions to count biosolids and other organics used as beneficial agricultural amendments toward their procurement targets to meet SB 1383 (2016), Short-Lived Pollutant Reduction Strategy. d. Support the promotion and funding of local pilot programs, studies, and research for the beneficial reuse of biosolids. e. Support alternative renewable energy legislation, regulation, and policies that encourage use of biosolids as a renewable energy resource. 11 f.Support legislation, regulations, and policies that encourage the procurement of biogas, biosolids, and compost to leverage economic benefits and environmental benefits. g.Support CalRecycle, CARB, California Public Utilities Commission (CPUC), California Energy Commission (CEC), California Department of Food and Agriculture (CDFA), and State Water Resources Control Board (SWRCB) in adopting quality standards that permit wastewater treatment plants to inject biogas production into current pipelines for renewable utilization. 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.Support development and funding for organic co-digestion and recycling projects in accordance with SB 1383 (2016), Short-Lived Pollutant Reduction Strategy or other associated rules and regulations. j.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. k.Oppose legislation, regulations, and policies that impose unreasonable or redundant requirements or hinder a streamlined permitting process. C.Source Reduction: 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 regulate 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 (e.g., Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS)) discharged into the sewer system. d.Support the reduction/elimination of Contaminants of Emerging Concern (e.g., PFAS) within consumer and commercial products to reduce CECs discharged to sewer. e.Advocate for PFAS source reduction or elimination measures to prevent PFAS from being discharged to the public wastewater treatment or reclamation plants. 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 grant funding to offset its research, special projects, and capital improvement projects. 12 a.Support legislation, bonds, programs, and projects that provide funding for: infrastructure construction and rehabilitation, special studies, 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, and provide a high value compared to the cost to administer the funding b.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 that leverage federal assistance such as credit assistance and highly subsidized loan assistance. b.Support public-private partnerships, public-to-public partnerships, and other financing approaches that can reduce costs only if such projects do not impose costs on OC San ratepayers and ensure long-term economic value to ratepayers. c.Support the full funding of the Clean Water Act - SRF Program. d.Support 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 and Employee Relations/Human Resources: OC San is committed to positive 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. 13 e.Oppose any measure that imposes employee benefit mandates on local governments that are more appropriately 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. k.Support employment litigation reforms that promote the early resolution of employment matters, protect employee rights, and safeguard public employers from meritless claims and unnecessary litigation costs. 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 (SCADA) systems. c.Support funding for the hardening of essential regional facilities such as water recycling and sewer collection sites. d.Support legislation and funding for regional emergency management collaboration to protect critical infrastructure. e.Artificial Intelligence (AI): Support legislation and policies that promote the responsible, ethical, and transparent use of artificial intelligence to improve public sector operations, enhance service delivery, protect privacy and security, and encourage innovation, while ensuring appropriate oversight, accountability, and workforce considerations. 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 14 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. 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 legislation, policy directives, and funding that support floodplain protection within the Santa Ana River watershed. b.Support funding assistance to ensure employees remain safe and secure during global pandemics. c.Support the protection of public health and environment through the construction and implementation of advanced wastewater treatment technology. d.Support sharing critical information and data from state and county agencies in the interest of protecting the public health and saving taxpayer dollars. e.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 federal policies and funding assistance to public agencies to support implementation of cybersecurity measures to protect infrastructure and water quality treatment activities, and ratepayer data. c.Support legislation and regulation that allows public agencies to procure goods and services in manners similar to private industry, thereby reducing overall costs of delivery. d.Support legislation and regulation that improves the Utility Underground Service Alert Program to improve coordination and identification, and minimize damage, minimize environmental risks, and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. 15 e.Support a comprehensive response to the state’s electricity and natural gas shortages that provides a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure (i.e., emergency and standby generators) may be employed temporarily during periods with minimal air quality impact, and protects ratepayers from dramatic rate increases and statewide power outages. f.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. g.Support legislation that increases the thresholds for bid work and force account work. h.Oppose Buy American mandates legislation that would increase project costs or prevent the use of the most innovative technologies. i.Monitor legislation that would require the inspection and possible repair of sewer laterals at the time of sale in residential, commercial, and industrial areas. j.Monitor legislation connected with government claims against special districts regarding risk and wrap-up insurance. 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, 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.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. c.Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. d.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. e.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. f.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. g.Preserve state and local tax deduction from federal tax liability of local taxpayers. 16 h.Oppose elimination or restriction on the availability of municipal tax-exempt financing for public infrastructure projects. i.Monitor legislation regarding changes in law that influence the fees and charges that OC San administers. 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. c.Support the work of the ACWA, CASA, and CSDA. in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members’ reserves. d.Support alternate methods of public meetings notices that maintain transparency but are more cost efficient and technologically advanced. e.Support maximum flexibility for special districts to conduct Board business virtually while providing for public transparency. f.Support legislation that gives local control on video retention guidelines to special districts to maintain maximum flexibility and cost control. g.Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. h.Oppose efforts that remove the flexibility of the Board to determine its own size and operating structure. M.Water Quality and Supply: OC San is committed to collaborating on efforts to protect regional water resources for the benefit of the people we serve. a.Support measures to increase water supply and improve water quality in the region, including beach protection and drought relief legislation and regulations. b.Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project operated by the Orange County Water District in partnership with OC San to create new water supplies through 17 wastewater recycling. c.Support measures that promote and provide for the use of reclaimed water, including United States Environmental Protection Agency (USEPA) Water Recycling Action Plan 2.0. d.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. e.Support legislation on coastal nutrient management that is based on sound science. f.Support measures to evaluate water quality standards, as needed, to ensure the objectives are appropriately protecting the designated use. 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 regulations 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.Support approaches to reduce compliance costs associated with stormwater controls including the use of integrated plans. o.Oppose any legislation or regulation that would combine or blur the requirements for Direct Potable Reuse and Indirect Potable Reuse. 18 p.Oppose statewide fees that require public agencies to pay for environmental cleanup caused by private parties or regional issues when there is no clear connection between those responsible for the pollution and those required to pay for the cleanup. q.Monitor state and federal legislation and regulations related to Contaminants of Emerging Concern (e.g., PFAS, microplastics, etc.). September 15, 2026 The Honorable Gavin Newsom Governor of California 1021 O Street, Suite 9000 Sacramento, CA 95814 RE: Assembly Bill (AB) 2180 (Ward): Proposition 218 Omnibus Implementation Act – REQUEST FOR SIGNATURE Dear Governor Newsom: On behalf of the Orange County Sanitation District (OC San), I respectfully request that you sign AB 2180, the Proposition 218 Omnibus Implementation Act, into law. The bill provides important clarification on how local governments may demonstrate compliance with constitutional requirements governing property-related service charges. AB 2180 clarifies that agencies may use reasonable methods, supported by existing or reasonably estimated data, to allocate service costs among parcels. It also confirms that agencies are not required to calculate exact parcel-by-parcel costs and may use uniform or tiered fees for customer classes based on factors such as land use, parcel improvements, or peak demand. These provisions are particularly important for sanitation districts operating complex regional wastewater systems. AB 2180 preserves Proposition 218 safeguards while providing agencies the flexibility to establish equitable, transparent, and financially sustainable rates that reflect the cost of providing service. For these reasons, OC San respectfully requests that you sign AB 2180 into law. If you have any questions, please contact Jennifer Cabral, Director of Communications, at (714) 593-7581 or via email at JCabral@ocsan.gov. Sincerely, Jon DumitruBoard Chairman Assembly Bill No. 2180 Passed the Assembly August 19, 2026 Chief Clerk of the Assembly Passed the Senate August 18, 2026 Secretary of the Senate This bill was received by the Governor this day of , 2026, at o’clock m. Private Secretary of the Governor CHAPTER An act to add Section 53751.5 to the Government Code, relating to local government finance. legislative counsel’s digest AB 2180, Ward. Local government: Proposition 218 Omnibus Implementation Act: proportional cost of service. The California Constitution specifies various requirements with respect to the levying of assessments and property-related fees and charges by a local agency. As part of those requirements, the California Constitution mandates that such fees or charges that are extended, imposed, or increased satisfy certain requirements, including, but not limited to, that the amount of the fee or charge imposed upon any parcel or person as an incident of property ownership not exceed the proportional cost of the service attributable to the parcel. Existing law, known as the Proposition 218 Omnibus Implementation Act (act), prescribes specific procedures and parameters for local jurisdictions to comply with these requirements and, among other things, authorizes an agency providing water, wastewater, sewer, or refuse collection services to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation under certain circumstances. This bill would authorize a local government to demonstrate the proportional cost of the service attributable to the parcel by any method that reasonably allocates the ascertainable cost of providing service to all parcels, if substantiated as provided. The bill would, however, provide that for water or sewer service fee or charge impositions, a local government is not required to provide an exact measure of the cost of the service at each parcel and may instead impose uniform or tiered rates to parcel or customer classes that are defined based on common characteristics indicative of likely water or sewer use. The bill would provide that the proportional cost of service within each tier of water service may be substantiated by using any reasonable basis for allocating costs 96 — 2 — AB 2180 attributed to the tier, as described, and would provide a local government discretion to determine the costs allocated to each tier as long as the rate for each tier does not exceed the proportional cost of service reasonably allocated to parcels subject to that tier. The bill would specify that its provisions do not apply to fees for water connections or sewer connections, or capacity charges, as specified. The people of the State of California do enact as follows: SECTION 1. Section 53751.5 is added to the Government Code, to read: 53751.5. (a) For any fee or charge adopted under Section 6 of Article XIII D of the California Constitution, “the proportional cost of the service attributable to the parcel” may be demonstrated by any method that reasonably allocates the ascertainable cost of providing service to all parcels. That allocation shall be substantiated by historic, existing, estimated, or projected data that reasonably captures the cost of the service to be provided. (b) Notwithstanding subdivision (a), when imposing a fee or charge for water or sewer service, an agency is not required to provide an exact measure of the cost of the service at each parcel and an agency may impose uniform or tiered rates to parcel or customer classes that are defined based on common characteristics indicative of likely water or sewer use, including, but not limited to, the nature and size of improvements to a parcel, land use, the nature or number of plumbing fixtures, meter size, or peak use characteristics. (c) (1) When imposing a tiered rate for water service, an agency may substantiate the proportional cost of the service within each tier by using any reasonable basis for allocating costs attributed to the tier, including, but not limited to, the following: (A) The cost of water from various sources. (B) Facilities operation, maintenance, or construction costs. (C) Contribution to systemwide peak demand projections. (D) Costs that an agency incurs as a result of the use of water at various tiers or to implement water conservation or demand management measures, or incremental costs, as that term is used in Chapter 3.4 (commencing with Section 370) of Division 1 of the Water Code. 96 AB 2180 — 3 — (2) An agency is not required to have a cost-based, or any other, justification for establishing any tier breakpoint. For purposes of this paragraph, “tier breakpoint” means the point where a customer leaves one tier and enters another tier. (3) An agency has discretion to determine the costs allocated to each tier, provided that the rate assigned to each tier does not exceed the proportional cost of service reasonably allocated to parcels subject to that tier. (d) This section shall not apply to fees for water connections or sewer connections, or capacity charges, subject to Section 66013. 96 — 4 — AB 2180 Approved , 2026 Governor September 15, 2026 The Honorable Gavin Newsom Governor of California 1021 O Street, Suite 9000 Sacramento, CA 95814 RE: Assembly Bill (AB) 2777 (House Environmental Safety and Toxic Materials Committee): Clean Water State Revolving Fund – REQUEST FOR SIGNATURE Dear Governor Newsom, The Orange County Sanitation District (OC San) respectfully requests that you sign AB 2777 into law. AB 2777 makes important changes to California water quality law that will provide the State Water Resources Control Board with greater flexibility to administer the Clean Water State Revolving Fund (CWSRF), while clarifying the definition of incidental runoff for recycled water uses. The CWSRF is a critical source of low-cost financing for wastewater and other water quality infrastructure projects throughout California. The program provides below-market-rate loans and, in appropriate circumstances, principal forgiveness for projects that protect and improve water quality. Since its inception, California’s CWSRF has executed more than $14.7 billion in financial assistance agreements with more than 500 unique recipients, supporting projects including wastewater treatment plants and sewer systems. AB 2777 would authorize the State Water Board, when administering CWSRF loans, to assess a fee in lieu of interest for financial assistance services. The fee could not exceed the amount of interest that otherwise would have been charged. This approach would give the State Water Board greater flexibility in administering the program. It could also help stabilize and potentially increase CWSRF resources while maintaining attractive, below-market financing for critical water quality infrastructure. Assembly Bill 2777 September 15, 2026 Page Two For sanitation districts and other public agencies responsible for essential wastewater infrastructure, maintaining a strong and sustainable CWSRF is particularly important. Greater flexibility in managing the fund will help preserve its capacity to finance water quality projects and protect California ratepayers by providing a low-cost alternative to commercial financing. AB 2777 also provides important technical clarification concerning recycled water. The bill defines “incidental runoff” as unintended, minimal amounts of runoff, such as overspray from sprinklers that escapes the intended area of use. The definition excludes runoff that is part of a facility or system design, results from excessive application, involves intentional overflow or application, or results from negligence. This clarification addresses an omission in SB 31 (2025) and provides needed certainty for agencies implementing recycled water projects. By providing greater flexibility in administering the CWSRF and clarifying recycled water requirements, AB 2777 will support continued investment in critical water quality infrastructure while promoting responsible and efficient use of state resources. For these reasons, the Orange County Sanitation District respectfully requests that you sign AB 2777 into law. If you have any questions, please contact Jennifer Cabral, Director of Communications, at (714) 593-7581 or via email at JCabral@ocsan.gov. Sincerely, Jon Dumitru Board Chairman Assembly Bill No. 2777 Passed the Assembly August 25, 2026 Chief Clerk of the Assembly Passed the Senate August 24, 2026 Secretary of the Senate This bill was received by the Governor this day of , 2026, at o’clock m. Private Secretary of the Governor CHAPTER An act to amend Sections 13477.5, 13480, and 13551 of the Water Code, relating to water quality. legislative counsel’s digest AB 2777, Committee on Environmental Safety and Toxic Materials. State Water Pollution Control Revolving Fund program: loans: outdoor eating areas: water reuse. (1) Existing law establishes the State Water Pollution Control Revolving Fund program, pursuant to which state and federal funds are continuously appropriated from the State Water Pollution Control Revolving Fund to the State Water Resources Control Board for loans and other financial assistance for purposes related to the federal Clean Water Act. Existing law establishes the State Water Pollution Control Revolving Fund Administration Fund (administration fund) to provide funds, upon appropriation by the Legislature, to be expended by the state board for payment of the reasonable costs of administering the State Water Pollution Control Revolving Fund. Existing law authorizes the state board to assess an annual charge for financial assistance services, not to exceed 1% of the financial assistance repayment amount and computed according to the true interest cost method, as provided, and requires those annual charges to be deposited into the administration fund. Existing law authorizes the financial service rate to be applied at any time during the term of the financial assistance and requires the rate to remain unchanged for the duration of the financial assistance. Existing law prohibits the financial assistance rate from increasing the financial assistance repayment amount after being applied. Existing law requires the state board to, at least once each fiscal year, adjust the financial assistance service rate. Existing law requires the state board to set the total amount of revenue collected each year through the annual charges at an amount that is equal as practicable to the appropriation amount set forth in the annual Budget Act. This bill would additionally authorize the state board to assess fees in place of an annual charge for financial assistance and would authorize the fees or annual charge to be assessed at any rate as 96 — 2 — AB 2777 permitted by federal law. The bill would delete the provision prohibiting the changing of the financial assistance rate during the financial assistance and the increasing of the financial assistance repayment amount. The bill would delete the requirement relating to the appropriation amount set forth in the annual Budget Act. (2) Existing law authorizes moneys in the State Water Pollution Control Revolving Fund to be used for loans that meet specified requirements, including that the loans be made at or below market interest rates and, to the extent permitted by federal law, requiring that the combined interest and loan service rate be set at a rate not to exceed 50% of the interest rate paid by the state on the most recent sale of state general obligation bonds, as provided. Existing law requires the combined interest and loan service rate to be 0% for certain applicants who provide matching funds. This bill would delete the provision requiring that the combined interest and loan service rate be set at a rate not to exceed 50% of the interest rate paid by the state on the most recent sale of state general obligation bonds. The bill would require the loans to be made at below market interest rates. (3) Existing law prohibits a person or public agency, including a state agency, city, county, city and county, district, or any other political subdivision of the state, from using water from any source of quality suitable for potable domestic use for nonpotable uses, including, among other locations, parks, if suitable recycled water is available, as provided. Existing law provides that incidental amounts of spray, mist, or runoff are to be permitted to enter outdoor eating areas of parks and open spaces when irrigated with disinfected tertiary treated recycled water that complies with a specified regulation regarding irrigation. This bill would instead provide that incidental runoff is allowed to enter outdoor eating areas of parks and open spaces when irrigated with disinfected tertiary treated recycled water that complies with a specified regulation regarding irrigation. The bill would define “incidental runoff” as unintended amounts of runoff, such as unintended, minimal overspray from sprinklers that escapes the area of intended use. 96 AB 2777 — 3 — The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) It is the intent of the Legislature to provide the State Water Resources Control Board with the authority to offer larger below-market rate loans that will help reinforce the long-term solvency of the fund and support affordable recycled water, wastewater, and water quality infrastructure in California. (b) It is the intent of the Legislature that when the State Water Resources Control Board adopts amendments to the Clean Water State Revolving Fund policy to implement this act, the board will collaborate with stakeholders and take steps to ensure projects receiving higher interest rates incur other benefits not offered to projects receiving the lowest offered rate. SEC. 2. Section 13477.5 of the Water Code is amended to read: 13477.5. (a) The State Water Pollution Control Revolving Fund Administration Fund is hereby created in the State Treasury. (b) The following moneys shall be deposited in the administration fund: (1) Moneys transferred to the administration fund to pay the costs incurred by the board in connection with the administration of this chapter. (2) The amounts collected for financial assistance services pursuant to subdivision (c). (3) Notwithstanding Section 16475 of the Government Code, any interest earned upon the moneys deposited in the administration fund. (c) (1) For any financial assistance made pursuant to Section 13480, the board may assess fees or an annual charge for financial assistance services with regard to the financial assistance, as permitted by federal law. (2) Any amounts collected under this subdivision shall be deposited in the administration fund. (3) The financial assistance service rate authorized by this subdivision may be applied at any time during the term of the financial assistance. (d) Moneys in the administration fund, upon appropriation by the Legislature to the board, may be expended for payment of the reasonable costs of administering the fund. 96 — 4 — AB 2777 (e) At least once each fiscal year, the board shall adjust the financial assistance service rate imposed pursuant to subdivision (c). SEC. 3. Section 13480 of the Water Code is amended to read: 13480. (a) Moneys in the fund shall be used only for the permissible purposes allowed by the federal act or a federal grant deposited in the fund, to the extent authorized and funded by that grant. (b) Consistent with expenditure for authorized purposes, moneys in the fund may be used for the following purposes: (1) Loans that meet all of the following requirements: (A) Are made at below market interest rates. (B) Require annual payments of principal and any interest, with repayment commencing not later than one year after completion of the project for which the loan is made and full amortization not later than 30 years after project completion unless otherwise authorized by a federal grant deposited in the fund to the extent authorized. (C) Require the loan recipient to establish an acceptable dedicated source of revenue for repayment of a loan. (D) (i) Contain other terms and conditions required by the board or the federal act or applicable rules, regulations, guidelines, and policies. A loan from the fund used to finance costs of facilities planning, or the preparation of plans, specifications, or estimates for construction of publicly owned treatment works shall comply with Section 603(e) of the federal act (33 U.S.C. Sec. 1383(e)). (ii) Notwithstanding clause (i), if the loan applicant is a municipality, an applicant for a loan for the implementation of a management program pursuant to Section 319 of the federal act (33 U.S.C. Sec. 1329), or an applicant for a loan for nonpoint source or estuary enhancement pursuant to Section 320 of the federal act (33 U.S.C. Sec. 1330), and the applicant provides matching funds, the combined interest and loan service rate on the loan shall be 0 percent. A loan recipient that returns to the fund an amount of money equal to 20 percent of the remaining unpaid federal balance of an existing loan shall have the remaining unpaid loan balance refinanced at a combined interest and loan service rate of 0 percent over the time remaining in the original loan contract. 96 AB 2777 — 5 — (2) To buy or refinance the debt obligations of municipalities within the state at or below market rates if those debt obligations were incurred after March 7, 1985. (3) To guarantee, or purchase insurance for, local obligations where that action would improve credit market access or reduce interest rates. (4) As a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state, if the proceeds of the sale of those bonds will be deposited in the fund. (5) To establish loan guarantees for similar revolving funds established by municipalities. (6) To earn interest. (7) For payment of the reasonable costs of administering the fund and conducting activities under Subchapter VI (commencing with Section 601) of the federal act (33 U.S.C. Sec. 1381 et seq.). Those costs shall not exceed 4 percent of all federal contributions to the fund, four hundred thousand dollars ($400,000) per year, or one-fifth of 1 percent per year of the current valuation of the fund, whichever amount is greatest, plus the amount of any fees collected by the state for this purpose regardless of the source. (8) For financial assistance toward the nonfederal share of the costs of grant-funded treatment works projects, to the extent permitted by the federal act. (9) Grants, principal forgiveness, negative interest rates, and any other type of, or variation on the above types of, assistance authorized by a federal grant deposited in the fund. SEC. 4. Section 13551 of the Water Code is amended to read: 13551. (a) A person or public agency, including a state agency, city, county, city and county, district, or any other political subdivision of the state, shall not use water from any source of quality suitable for potable domestic use for nonpotable uses, including cemeteries, golf courses, parks, highway landscaped areas, and industrial and irrigation uses if suitable recycled water is available as provided in Section 13550. (b) Notwithstanding subdivision (a), any use of recycled water in lieu of water suitable for potable domestic use shall, to the extent of the recycled water so used, be deemed to constitute a reasonable beneficial use of that water and the use of recycled water shall not cause any loss or diminution of any existing water right. 96 — 6 — AB 2777 (c) Incidental runoff shall be allowed to enter outdoor eating areas of parks and open spaces when irrigated with disinfected tertiary treated recycled water that complies with Section 493.4 of Title 23 of the California Code of Regulations. (d) For purposes of subdivision (c), “incidental runoff” means unintended amounts (volume) of runoff, such as unintended, minimal overspray from sprinklers that escapes the area of intended use. Water leaving an intended use area is not considered incidental if it is part of the facility or system design, if it is due to excessive application, if it is due to intentional overflow or application, or if it is due to negligence. 96 AB 2777 — 7 — Approved , 2026 Governor September 16, 2026 The Honorable Gavin Newsom Governor of California 1021 O Street, Suite 9000 Sacramento, CA 95814 RE: Assembly Bill (AB) 1621 (Wilson): Planning and Zoning Law: Post-entitlement Phase Permits: Housing Accountability Act — Request for Veto Dear Governor Newsom, The Orange County Sanitation District (OC San) respectfully requests that you veto AB 1621. The bill limits residential building permit applications to two rounds of plan review and restricts agencies’ ability to require corrective action or issue stop-work orders when problems are identified during construction. While recent amendments provide some flexibility, significant concerns remain, including the undefined standard allowing denial when a second submission is “not up to permit standards” and limitations on agencies’ ability to address conditions discovered in the field. These restrictions are particularly concerning for wastewater infrastructure, where construction can uncover previously unknown utilities, subsurface conditions, concealed piping, drainage issues, and other site-specific conditions that may not be identified during plan review. Limiting an agency’s ability to require corrective action when these issues are discovered could leave significant unresolved infrastructure deficiencies. The opportunity to review plans provides an important opportunity to evaluate utility capacity, system impacts, environmental compliance, and other project- specific considerations before deficiencies become costly or difficult to correct. These reviews serve an important function in protecting public health, safety, and welfare, and evaluating project-specific utility capacity and environmental compliance. AB 1621 also creates legal uncertainty by establishing a new “reasonable person” standard for determining when an agency may require corrective action that deviates from an approved plan. Assembly Bill 1621 September 15, 2026 Page Two Technical compliance is typically evaluated by trained professionals, including engineers, architects, inspectors, and building officials. Applying an undefined standard to these technical decisions could increase litigation and undermine agencies’ ability to enforce applicable requirements. AB 1621 also expands enforcement under the Housing Accountability Act to include post- entitlement permitting violations and, in certain circumstances, allows applicants to seek a writ of mandate. This could increase litigation and legal costs over technical permitting and inspection decisions, while requiring local agencies to revise procedures, meet shortened appeal deadlines, strengthen documentation, and potentially reallocate staff resources to comply with the bill’s expanded requirements. OC San supports responsible permit streamlining and efforts to advance housing production. However, those goals should not compromise public agencies’ ability to ensure development is supported by safe, reliable, and properly designed wastewater infrastructure. Unresolved deficiencies can ultimately result in added costs, system impacts, and corrective work borne by public agencies and their ratepayers. For these reasons, the Orange County Sanitation District respectfully requests that you veto AB 1621. If you have any questions, please contact Jennifer Cabral, Director of Communications, at (714) 593-7581 or via email at JCabral@ocsan.gov. Sincerely, Jon Dumitru Board Chairman Assembly Bill No. 1621 Passed the Assembly August 25, 2026 Chief Clerk of the Assembly Passed the Senate August 25, 2026 Secretary of the Senate This bill was received by the Governor this day of , 2026, at o’clock m. Private Secretary of the Governor CHAPTER An act to amend Sections 65589.5 and 65913.3 of the Government Code, relating to planning and zoning. legislative counsel’s digest AB 1621, Wilson. Planning and Zoning Law: postentitlement phase permits: Housing Accountability Act. (1) The Planning and Zoning Law requires a local agency or state agency to compile one or more lists that specify in detail the information required from any applicant for a postentitlement phase permit, as defined. Existing law also establishes time limits for completing reviews regarding whether an application for a postentitlement phase permit is complete and compliant, and whether to approve or deny an application. Existing law requires the time limits to be tolled, if the local agency or state agency requires review of the application by an outside entity, until the outside entity completes the review and returns the application, as specified. This bill would prohibit a local agency or state agency from requiring or requesting more than 2 plan check and specification reviews in connection with an application for a building permit, as part of its review. The bill would authorize a local agency or state agency to deny an application that is not compliant with the permit standards following 2 plan check and specification reviews. The bill would also authorize an applicant to request additional submittals of applications that are not compliant with the permit standards. The bill, if a local agency or state agency finds that a complete application is noncompliant, would prohibit a local agency or state agency from requesting or requiring any action or inaction as a result of a building inspection undertaken to assess compliance with the applicable building permit standards that would represent a deviation from a previously approved building plan or similar approval for the building permit, except as specified. This bill would remove the above-described tolling requirements relating to outside entity reviews and, instead, would require, if federal or state law requires review of the application by another public agency that is independent of the local agency or state 95 — 2 — AB 1621 agency before the local agency or state agency is authorized to act on the application, the time limits to be tolled for the application until the public agency completes the review and returns the application to the local agency or state agency. The bill would require the local agency or state agency to notify the applicant of the tolling, as specified. (2) Existing law, if a postentitlement phase permit is determined to be incomplete or noncompliant, requires a local agency or state agency to provide a process for an applicant to appeal that decision in writing to the governing body of the agency or, if there is no governing body, to the director of the agency, as provided by that agency. Existing law requires the city or county to provide that the right of appeal is to the governing body or, at their option, the planning commission, or both. Existing law requires a local agency or state agency to provide a final written determination on the appeal not later than 60 business days after receipt of the applicant’s written appeal, for housing development projects with 25 units or fewer, and not later than 90 business days for a housing development projects with 26 units or more. Existing law also specifies that the fact that an appeal is permitted to both the planning commission and to the governing body does not extend the specified time period. This bill would revise those timelines to not later than 30 business days for housing development projects with 25 units or fewer and 45 business days for housing development projects with 26 units or more. The bill would remove the specification that the fact that an appeal is permitted to both the planning commission and to the governing body does not extend the specified time period. The bill would remove the requirement that, if a postentitlement phase permit is determined to be incomplete or noncompliant, a local agency or state agency provide a process for an applicant to appeal that decision to the director of the agency if there is no governing body, as provided by that agency. The bill would remove the requirement that a city or county provide that the right of appeal is to the governing body or, at their option, the planning commission, or both. This bill would authorize the applicant to seek a writ of mandate to compel approval of the application, if the applicant’s appeal is denied, or a decision on the appeal is not made within the timelines provided, or an appeals process is not provided as required. 95 AB 1621 — 3 — By imposing additional duties on local agencies regarding postentitlement phase permits, the bill would impose a state-mandated local program. (3) Existing law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households unless the local agency makes written findings as to one of certain sets of conditions, as specified. The act also requires, when a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, that the local agency base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that 2 specified conditions exist. Existing law defines the term “disapprove the housing development project” for these purposes to include any instance in which a local agency takes certain actions or fails to comply with certain requirements, including the time limits described above. Existing law makes a local agency’s failure to meet the above-described time limits relating to postentitlement phase permits a violation of the Housing Accountability Act. This bill would, instead, make a violation of the above-described provisions relating to postentitlement phase permits, among others, a violation of the Housing Accountability Act. The bill would also revise the definition of “disapprove the housing development project” under the Housing Accountability Act to include any instance in which a local agency fails to comply with any of the provisions described above relating to postentitlement phase permits. By requiring local agencies to take certain actions, this bill would impose a state-mandated local program. (4) The bill would make other conforming changes and would provide that certain changes are declaratory of existing law. (5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. 95 — 4 — AB 1621 (6) This bill would incorporate additional changes to Section 65589.5 of the Government Code proposed by SB 1072 to be operative only if this bill and SB 1072 are enacted and this bill is enacted last. (7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. Section 65589.5 of the Government Code is amended to read: 65589.5. (a) (1) The Legislature finds and declares all of the following: (A) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (B) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (C) Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (D) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. (2) In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following: 95 AB 1621 — 5 — (A) California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives. (B) While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor. (C) The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability. (D) According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025. (E) California’s overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of California’s households are able to afford the cost of housing in their local regions. (F) Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians. (G) The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent. (H) When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees. (I) An additional consequence of the state’s cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and 95 — 6 — AB 1621 middle-class households. California’s cumulative housing shortfall therefore has not only national but international environmental consequences. (J) California’s housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section. (K) The Legislature’s intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled. (L) It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing. (3) It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently. (4) It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments. (b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d). (c) The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should 95 AB 1621 — 7 — be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (d) For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following: (1) The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards. (2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and 95 — 8 — AB 1621 unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety: (A) Inconsistency with the zoning ordinance or general plan land use designation. (B) The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code. (3) The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. (4) The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (5) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan. (A) This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete. (B) If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to 95 AB 1621 — 9 — demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583. (6) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builder’s remedy project. (e) Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (f) (1) Except as provided in paragraphs (6) and (8), and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a project’s eligibility for a density bonus, incentive, or concession, 95 — 10 — AB 1621 or waiver or reduction of development standards and parking ratios, pursuant to Section 65915. (2) Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdiction’s need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project. (3) Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter. (4) For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity. (5) For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter. (6) Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builder’s remedy project: (A) A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. If the local agency has no general plan designation or zoning classification that would have allowed the density and 95 AB 1621 — 11 — unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the project’s density and unit type, and those shall apply. (B) (i) Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following: (I) Render the project infeasible. (II) Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant. (ii) The local agency shall bear the burden of proof of complying with clause (i). (C) (i) A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915. (ii) For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builder’s remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h). (iii) A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h). (iv) A project that dedicates units to extremely low income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more 95 — 12 — AB 1621 units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915. (v) All units dedicated to extremely low income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915. (D) (i) The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval. (ii) The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant. (iii) Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose. (E) A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builder’s remedy project. (F) (i) A builder’s remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123. (ii) A builder’s remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4. (G) (i) (I) If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households 95 AB 1621 — 13 — to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement. (II) Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind. (III) Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code. (IV) A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement. (ii) Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units. (iii) Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law. (7) (A) For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builder’s remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025. 95 — 14 — AB 1621 (B) Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builder’s remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more. (8) A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9). (9) For purposes of this subdivision, “objective, quantifiable, written development standards, conditions, and policies” means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project. (g) This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem. (h) The following definitions apply for the purposes of this section: 95 AB 1621 — 15 — (1) “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors. (2) “Housing development project” means a use consisting of any of the following: (A) Residential units only. (B) Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions: (i) A mixed-use development that meets both of the following: (I) At least two-thirds of the new or converted square footage is designated for residential use. (II) (ia) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging. (ib) (Ia) Notwithstanding sub-subclause (ia), if a mixed-use project as defined in this paragraph includes a hotel, motel, bed and breakfast inn, or other transient lodging, the portion of the mixed-use project which does not include a hotel, motel, bed and breakfast inn, or other transient lodging shall be considered a housing development project. (Ib) The local agency may separately approve the portion of the project that includes a hotel, motel, bed and breakfast inn, or other transient lodging, which shall not be eligible for any benefits conferred on a housing development project by state law, including, but not limited to, those available to a development under Section 65913.4. (ic) For purposes of this subclause, the term “other transient lodging” does not include either of the following: (Ia) A residential hotel, as defined in Section 50519 of the Health and Safety Code. (Ib) After the issuance of a certificate of occupancy, a resident’s use or marketing of a unit as short-term lodging, as defined in Section 17568.8 of the Business and Professions Code, in a manner consistent with local law. (ii) At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following: (I) The project includes at least 500 net new residential units. (II) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a 95 — 16 — AB 1621 portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code. (iii) At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following: (I) The project includes at least 500 net new residential units. (II) The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use. (III) The project demolishes at least 50 percent of the existing nonresidential uses on the site. (IV) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code. (C) Transitional housing or supportive housing. (D) Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code. (3) (A) “Housing for very low, low-, or moderate-income households” means housing for lower income households, mixed-income households, or moderate-income households. (B) “Housing for lower income households” means a housing development project in which 100 percent of the units, excluding managers’ units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units. (C) (i) “Housing for mixed-income households” means any of the following: (I) A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code. (II) A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, are dedicated to very low 95 AB 1621 — 17 — income households, as defined in Section 50105 of the Health and Safety Code. (III) A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code. (IV) A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre. (ii) All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following: (I) The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. (II) The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years. (D) “Housing for moderate-income households” means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units. (4) “Area median income” means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (5) Notwithstanding any other law, “deemed complete” means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application 95 — 18 — AB 1621 pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete. (6) “Disapprove the housing development project” includes any instance in which a local agency does any of the following: (A) Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit. (B) Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) of Chapter 4.5 shall be deemed to be an extension of time pursuant to this paragraph. (C) Fails to comply with subdivisions (b) to (e), inclusive, of Section 65913.3. (D) Fails to meet the time limit specified in Section 17970.3 of the Health and Safety Code. (E) Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met: (i) The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100. (ii) Within five working days of receiving the applicant’s written notice described in clause (i), the local agency shall post the notice on the local agency’s internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code. (iii) The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicant’s written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i). 95 AB 1621 — 19 — (iv) Within 90 days of receipt of the applicant’s written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements: (I) The findings articulate an objective basis for why the challenged course of conduct is necessary. (II) The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing. (v) (I) If a local agency continues the challenged course of conduct described in the applicant’s written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant. (II) If an applicant challenges a local agency’s course of conduct as a disapproval under this subparagraph, the local agency’s written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agency’s course of conduct constitutes a disapproval of the housing development project under this subparagraph. (vi) A local agency’s action in furtherance of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph. (F) Fails to comply with Section 65905.5. For purposes of this subparagraph, a builder’s remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete. (G) (i) Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agency’s submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist. 95 — 20 — AB 1621 (ii) In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination. (iii) Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agency’s submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. (iv) If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section. (H) Violates subparagraph (D) or (E) of paragraph (6) of subdivision (f). (I) Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions (d) and (e) of Section 65941.1. (J) (i) Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied. (ii) This subparagraph shall become inoperative on January 1, 2031. (K) (i) Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act 95 AB 1621 — 21 — (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied. (ii) This subparagraph shall become inoperative on January 1, 2031. (7) (A) For purposes of this section and Sections 65589.5.1 and 65589.5.2, “lawful determination” means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2. (B) This paragraph shall become inoperative on January 1, 2031. (8) “Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing. (9) “Objective” means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official. (10) Notwithstanding any other law, “determined to be complete” means that the applicant has submitted a complete application pursuant to Section 65943. (11) “Builder’s remedy project” means a project that meets all of the following criteria: (A) The project is a housing development project that provides housing for very low, low-, or moderate-income households. (B) On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article. (C) The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions: (i) The density does not exceed the greatest of the following densities: (I) Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as 95 — 22 — AB 1621 specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2. (II) Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater. (III) The density that is consistent with the density specified in the housing element. (ii) Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following: (I) One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code. (II) A very low vehicle travel area, as defined in subdivision (b) of Section 65589.5.1. (III) A high or highest resource census tract, as identified by the latest edition of the “CTCAC/HCD Opportunity Map” published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development. (D) (i) On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site. (I) For purposes of this subparagraph, “commuter rail” means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares. (II) For purposes of this subparagraph, “heavy rail” means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading. (ii) On all other sites with a minimum density requirement, the density of the project shall not be less than the local agency’s minimum density or one-half of the minimum density deemed 95 AB 1621 — 23 — appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower. (E) The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16. (12) “Condition approval” includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies. (13) “Unit type” means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel. (14) “Proposed by the applicant” means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses. (i) If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development project’s application is complete, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o). (j) (1) When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency 95 — 24 — AB 1621 shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist: (A) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (B) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (2) (A) If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows: (i) Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units. (ii) Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units. (B) If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. (3) For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is 95 AB 1621 — 25 — inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision. (4) For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project. (k) (1) (A) (i) The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii): (I) The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section. (II) The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section. (III) The local agency, in violation of subdivision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted. (IV) The local agency violated a provision of this section applicable to a builder’s remedy project. 95 — 26 — AB 1621 (ii) If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorney’s fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorney’s fees in either of the following instances: (I) The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section. (II) (ia) In a case concerning a disapproval within the meaning of subparagraph (J) or (K) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a substantial ground for difference of opinion at the time of the disapproval. (ib) This subclause shall become inoperative on January 1, 2031. (B) Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local 95 AB 1621 — 27 — agency’s progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. (C) If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency. (D) Nothing in this section shall limit the court’s inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure. (2) For purposes of this subdivision, “housing organization” means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A 95 — 28 — AB 1621 housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorney’s fees and costs if it is the prevailing party in an action to enforce this section. (l) If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the court’s order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, “bad faith” includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit. (m) (1) Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (6) of subdivision (h). Upon entry of the trial court’s order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount 95 AB 1621 — 29 — to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant. (2) (A) A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicant’s timely written notice. (B) This paragraph shall become inoperative on January 1, 2031. (3) (A) A disapproval within the meaning of subparagraph (K) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicant’s timely written notice. (B) This paragraph shall become inoperative on January 1, 2031. (n) In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m), all or part of the record may be prepared (1) by the petitioner with the petition or petitioner’s points and authorities, (2) by the respondent with respondent’s points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs. (o) (1) Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted. (2) Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances: (A) In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction. 95 — 30 — AB 1621 (B) A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact. (C) Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (D) The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph: (i) “Affordable housing project” means a housing development that satisfies both of the following requirements: (I) Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915. (II) All of the units within the development, excluding managers’ units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code. (ii) “Final approval” means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met: (I) The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed. (II) If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project. 95 AB 1621 — 31 — (E) The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided. For purposes of this subdivision, “square footage of construction” means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations). (3) This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted. (4) For purposes of this subdivision, “ordinances, policies, and standards” includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions. (5) This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section. (6) This subdivision shall not restrict the authority of a public agency or local agency to require mitigation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (7) With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent 95 — 32 — AB 1621 stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing. (p) (1) Upon any motion for an award of attorney’s fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agency’s approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agency’s approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorney’s fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2. (2) This subdivision shall become inoperative on January 1, 2031. (q) This section shall be known, and may be cited, as the Housing Accountability Act. (r) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 1.5. Section 65589.5 of the Government Code is amended to read: 65589.5. (a) (1) The Legislature finds and declares all of the following: (A) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (B) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. 95 AB 1621 — 33 — (C) Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (D) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. (2) In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following: (A) California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives. (B) While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor. (C) The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability. (D) According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025. (E) California’s overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of California’s households are able to afford the cost of housing in their local regions. (F) Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians. 95 — 34 — AB 1621 (G) The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent. (H) When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees. (I) An additional consequence of the state’s cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. California’s cumulative housing shortfall therefore has not only national but international environmental consequences. (J) California’s housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section. (K) The Legislature’s intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled. (L) It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing. (3) It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently. (4) It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar 95 AB 1621 — 35 — as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments. (b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d). (c) The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (d) For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following: (1) The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department 95 — 36 — AB 1621 of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards. (2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety: (A) Inconsistency with the zoning ordinance or general plan land use designation. (B) The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code. (3) The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. (4) The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (5) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdiction’s 95 AB 1621 — 37 — zoning ordinance and general plan land use designation as specified in any element of the general plan. (A) This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete. (B) If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583. (6) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builder’s remedy project. (e) Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise 95 — 38 — AB 1621 complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (f) (1) Except as provided in paragraphs (6) and (8), and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a project’s eligibility for a density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915. (2) Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdiction’s need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project. (3) Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter. (4) For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity. 95 AB 1621 — 39 — (5) For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter. (6) Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builder’s remedy project: (A) A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. If the local agency has no general plan designation or zoning classification that would have allowed the density and unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the project’s density and unit type, and those shall apply. (B) (i) Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following: (I) Render the project infeasible. (II) Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant. (ii) The local agency shall bear the burden of proof of complying with clause (i). (C) (i) A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915. (ii) For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and 95 — 40 — AB 1621 notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builder’s remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h). (iii) A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h). (iv) A project that dedicates units to extremely low income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915. (v) All units dedicated to extremely low income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915. (D) (i) The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval. (ii) The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant. (iii) Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose. (E) A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builder’s remedy project. 95 AB 1621 — 41 — (F) (i) A builder’s remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123. (ii) A builder’s remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4. (G) (i) (I) If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement. (II) Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind. (III) Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code. (IV) A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement. 95 — 42 — AB 1621 (ii) Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units. (iii) Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law. (7) (A) For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builder’s remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025. (B) Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builder’s remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more. (8) A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9). (9) For purposes of this subdivision, “objective, quantifiable, written development standards, conditions, and policies” means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). 95 AB 1621 — 43 — Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project. (g) This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem. (h) The following definitions apply for the purposes of this section: (1) “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors. (2) “Housing development project” means a use consisting of any of the following: (A) Residential units only. (B) Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions: (i) A mixed-use development that meets both of the following: (I) At least two-thirds of the new or converted square footage is designated for residential use. (II) (ia) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging. (ib) (Ia) Notwithstanding sub-subclause (ia), if a mixed-use project as defined in this paragraph includes a hotel, motel, bed and breakfast inn, or other transient lodging, the portion of the mixed-use project which does not include a hotel, motel, bed and breakfast inn, or other transient lodging shall be considered a housing development project. (Ib) The local agency may separately approve the portion of the project that includes a hotel, motel, bed and breakfast inn, or other transient lodging, which shall not be eligible for any benefits conferred on a housing development project by state law, including, but not limited to, those available to a development under Section 65913.4. 95 — 44 — AB 1621 (ic) For purposes of this subclause, the term “other transient lodging” does not include either of the following: (Ia) A residential hotel, as defined in Section 50519 of the Health and Safety Code. (Ib) After the issuance of a certificate of occupancy, a resident’s use or marketing of a unit as short-term lodging, as defined in Section 17568.8 of the Business and Professions Code, in a manner consistent with local law. (ii) At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following: (I) The project includes at least 500 net new residential units. (II) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code. (iii) At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following: (I) The project includes at least 500 net new residential units. (II) The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use. (III) The project demolishes at least 50 percent of the existing nonresidential uses on the site. (IV) No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code. (C) Transitional housing or supportive housing. (D) Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code. (3) (A) “Housing for very low, low-, or moderate-income households” means housing for lower income households, mixed-income households, or moderate-income households. (B) “Housing for lower income households” means a housing development project in which 100 percent of the units, excluding managers’ units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with 95 AB 1621 — 45 — the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units. (C) (i) “Housing for mixed-income households” means any of the following: (I) A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code. (II) A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, are dedicated to very low income households, as defined in Section 50105 of the Health and Safety Code. (III) A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code. (IV) A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (9) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre. (ii) All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following: (I) The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. (II) The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years. (D) “Housing for moderate-income households” means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in 95 — 46 — AB 1621 Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units. (4) “Area median income” means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (5) Notwithstanding any other law, “deemed complete” means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete. (6) “Disapprove the housing development project” includes any instance in which a local agency does any of the following: (A) Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit. (B) Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) of Chapter 4.5 shall be deemed to be an extension of time pursuant to this paragraph. (C) Fails to comply with subdivisions (b) to (e), inclusive, of Section 65913.3. (D) Fails to meet the time limit specified in Section 17970.3 of the Health and Safety Code. (E) Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met: (i) The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100. 95 AB 1621 — 47 — (ii) Within five working days of receiving the applicant’s written notice described in clause (i), the local agency shall post the notice on the local agency’s internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code. (iii) The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicant’s written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i). (iv) Within 90 days of receipt of the applicant’s written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements: (I) The findings articulate an objective basis for why the challenged course of conduct is necessary. (II) The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing. (v) (I) If a local agency continues the challenged course of conduct described in the applicant’s written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant. (II) If an applicant challenges a local agency’s course of conduct as a disapproval under this subparagraph, the local agency’s written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agency’s course of conduct constitutes a disapproval of the housing development project under this subparagraph. (vi) A local agency’s action in furtherance of complying with the California Environmental Quality Act (Division 13 95 — 48 — AB 1621 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph. (F) Fails to comply with Section 65905.5. For purposes of this subparagraph, a builder’s remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete. (G) (i) Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agency’s submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist. (ii) In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination. (iii) Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agency’s submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. (iv) If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section. (H) Violates subparagraph (D) or (E) of paragraph (6) of subdivision (f). (I) Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions (d) and (e) of Section 65941.1. 95 AB 1621 — 49 — (J) (i) Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied. (ii) This subparagraph shall become inoperative on January 1, 2031. (K) (i) Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied. (ii) This subparagraph shall become inoperative on January 1, 2031. (7) (A) For purposes of this section and Sections 65589.5.1 and 65589.5.2, “lawful determination” means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2. (B) This paragraph shall become inoperative on January 1, 2031. (8) “Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing. (9) “Objective” means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official. (10) Notwithstanding any other law, “determined to be complete” means that the applicant has submitted a complete application pursuant to Section 65943. 95 — 50 — AB 1621 (11) “Builder’s remedy project” means a project that meets all of the following criteria: (A) The project is a housing development project that provides housing for very low, low-, or moderate-income households. (B) On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article. (C) The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions: (i) The density does not exceed the greatest of the following densities: (I) Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2. (II) Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater. (III) The density that is consistent with the density specified in the housing element. (ii) Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following: (I) One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code. (II) A very low vehicle travel area, as defined in subdivision (b) of Section 65589.5.1. (III) A high or highest resource census tract, as identified by the latest edition of the “CTCAC/HCD Opportunity Map” published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development. (D) (i) On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site. (I) For purposes of this subparagraph, “commuter rail” means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short 95 AB 1621 — 51 — distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares. (II) For purposes of this subparagraph, “heavy rail” means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading. (ii) On all other sites with a minimum density requirement, the density of the project shall not be less than the local agency’s minimum density or one-half of the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower. (E) The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16. (12) “Condition approval” includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies. (13) “Unit type” means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel. (14) “Proposed by the applicant” means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses. (i) If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development project’s application is complete, that have a substantial adverse effect on the viability or 95 — 52 — AB 1621 affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o). (j) (1) When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist: (A) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (B) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (2) (A) If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows: 95 AB 1621 — 53 — (i) Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units. (ii) Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units. (B) If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. (3) For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision. (4) For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project. (k) (1) (A) (i) The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii): (I) The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency 95 — 54 — AB 1621 shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section. (II) The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section. (III) The local agency, in violation of subdivision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted. (IV) The local agency violated a provision of this section applicable to a builder’s remedy project. (ii) If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorney’s fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorney’s fees in either of the following instances: (I) The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section. (II) (ia) In a case concerning a disapproval within the meaning of subparagraph (J) or (K) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a 95 AB 1621 — 55 — substantial ground for difference of opinion at the time of the disapproval. (ib) This subclause shall become inoperative on January 1, 2031. (B) Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agency’s progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. (C) If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by 95 — 56 — AB 1621 the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency. (D) Nothing in this section shall limit the court’s inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure. (2) For purposes of this subdivision, “housing organization” means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorney’s fees and costs if it is the prevailing party in an action to enforce this section. (l) If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the court’s order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, “bad faith” includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit. (m) (1) (A) Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless 95 AB 1621 — 57 — the petitioner elects to prepare the record as provided in subdivision (n) of this section. (B) A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of either of the following: (i) The effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development. (ii) The expiration of the time periods specified in subparagraphs (B) to (D), inclusive, of paragraph (6) of subdivision (h). (C) Upon entry of the trial court’s order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant. (2) (A) A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicant’s timely written notice. (B) This paragraph shall become inoperative on January 1, 2031. (3) (A) A disapproval within the meaning of subparagraph (K) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicant’s timely written notice. (B) This paragraph shall become inoperative on January 1, 2031. (n) In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m), all or part of the record may be prepared (1) by the petitioner with the petition or petitioner’s points and authorities, (2) by the respondent with respondent’s points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed 95 — 58 — AB 1621 by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs. (o) (1) Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted. (2) Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances: (A) In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction. (B) A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact. (C) Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (D) The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph: (i) “Affordable housing project” means a housing development that satisfies both of the following requirements: (I) Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 95 AB 1621 — 59 — 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915. (II) All of the units within the development, excluding managers’ units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code. (ii) “Final approval” means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met: (I) The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed. (II) If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project. (E) The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided. For purposes of this subdivision, “square footage of construction” means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations). (3) This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted. (4) For purposes of this subdivision, “ordinances, policies, and standards” includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including 95 — 60 — AB 1621 those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions. (5) This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section. (6) This subdivision shall not restrict the authority of a public agency or local agency to require mitigation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (7) With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing. (p) (1) Upon any motion for an award of attorney’s fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agency’s approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agency’s approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorney’s fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2. (2) This subdivision shall become inoperative on January 1, 2031. (q) This section shall be known, and may be cited, as the Housing Accountability Act. 95 AB 1621 — 61 — (r) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 2. Section 65913.3 of the Government Code is amended to read: 65913.3. (a) (1) A local agency or state agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a postentitlement phase permit. The local agency or state agency may revise the lists of information required from an applicant. Any revised list shall not apply to any permit pending review. (2) A local agency or state agency shall post an example of a complete, approved application and an example of a complete set of postentitlement phase permits. A local agency shall post examples for at least five types of housing development projects in the jurisdiction, including, but not limited to, accessory dwelling unit, duplex, multifamily, mixed use, and townhome. (3) (A) A local agency shall make the items required by paragraphs (1) and (2) available on the agency’s internet website no later than January 1, 2024. (B) A state agency shall make the items required by paragraphs (1) and (2) available on the agency’s internet website no later than January 1, 2026. (b) (1) (A) A local agency or state agency shall determine whether an application for a postentitlement phase permit is complete and provide written notice of this determination to the applicant not later than 15 business days after the local agency or state agency received the application. (B) If the local agency or state agency determines an application is incomplete, the local agency or state agency shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. The list shall be limited to incomplete items that are included on the lists required by paragraph (1) of subdivision (a). The list and description shall be provided with the written notice required by subparagraph (A). (2) (A) After receiving a notice that the application was incomplete, an applicant may cure and address the items that are deemed to be incomplete by the local agency or state agency. 95 — 62 — AB 1621 (B) In the review of an application submitted pursuant to subparagraph (A), the local agency or state agency shall not require the application to include an item that was not included in the list required by subparagraph (B) of paragraph (1). (C) If an applicant submits an application pursuant to subparagraph (A), the local agency or state agency shall determine whether the additional application has remedied all incomplete items listed in the determination issued pursuant to subparagraph (B) of paragraph (1). This additional application is subject to the timelines and requirements specified in subparagraph (A) of paragraph (1). (3) If a local agency or state agency does not make a timely determination as required by paragraph (1) or (2) and the application or resubmitted application states that it is for a postentitlement phase permit, the application or resubmitted application shall be deemed to be complete for the purposes of this chapter. (c) (1) (A) For housing development projects with 25 units or fewer, a local agency or state agency shall complete the review and do either of the following: (i) If the local agency or state agency determines that the complete application is not compliant with the permit standards, return in writing a full set of comments to the applicant with a comprehensive request for revisions. (ii) If the local agency or state agency determines that the complete application is compliant with the permit standards, return the approved permit application on each postentitlement phase permit requested. (B) The local agency or state agency shall immediately transmit that determination to the applicant by electronic mail and, if applicable, by posting the response on its internet website in the manner prescribed in subdivision (b) of Section 65913.3.5 not later than 30 business days after the local agency or state agency determines that an application for a postentitlement phase permit is complete pursuant to subdivision (b). (C) (i) As part of its review, the local agency or state agency shall not require or request more than two plan check and specification reviews in connection with an application for a building permit. 95 AB 1621 — 63 — (ii) Notwithstanding clause (i), a local agency or state agency may deny an application that is not compliant with the permit standards following two plan check and specification reviews. (iii) An applicant may request additional submittals of applications that are not compliant with the permit standards. (iv) This subparagraph shall not be construed to affect the number of submittals that a local agency or state agency may require or request for any postentitlement phase permit other than a building permit. (2) (A) For housing development projects with 26 units or more, a local agency or state agency shall complete the review and do either of the following: (i) If the local agency or state agency determines that the complete application is not compliant with the permit standards, return in writing a full set of comments to the applicant with a comprehensive request for revisions. (ii) If the local agency or state agency determines that the complete application is compliant with the permit standards, return the approved permit application on each postentitlement phase permit requested. (B) The local agency or state agency shall immediately transmit that determination to the applicant by electronic mail and, if applicable, by posting the response on its internet website in the manner prescribed in subdivision (b) of Section 65913.3.5 not later than 60 business days after the local agency or state agency determines that an application for a postentitlement phase permit is complete pursuant to subdivision (b). (C) (i) As part of its review, the local agency or state agency shall not require or request more than two plan check and specification reviews in connection with an application for a building permit. (ii) Notwithstanding clause (i), a local agency or state agency may deny an application that is not compliant with the permit standards following two plan check and specification reviews. (iii) An applicant may request additional submittals of applications that are not compliant with the permit standards. (iv) This subparagraph shall not be construed to affect the number of submittals that a local agency or state agency may require or request for any postentitlement phase permit other than a building permit. 95 — 64 — AB 1621 (3) Once a local agency or state agency determines that a postentitlement phase permit is compliant with applicable permit standards pursuant to paragraph (1) or (2), the local agency or state agency shall not subject the postentitlement phase permit to any appeals or additional hearing requirements. (4) The time limits in this subdivision shall not apply if the local agency or state agency makes written findings within the time limits specified in paragraph (1) or (2) based on substantial evidence in the record that the proposed postentitlement phase permit might have a specific, adverse impact on public health or safety and that additional time is necessary to process the application. (5) (A) If federal or state law requires review of the application by another public agency that is independent of the local agency or state agency before the local agency or state agency is authorized to act on the application, the time limits in this subdivision shall be tolled for the application until the public agency completes the review and returns the application to the local agency or state agency. (B) After the public agency returns the application to the local agency or state agency, the local agency or state agency shall complete the review within the time remaining under the time limit, subject to subparagraph (C). (C) Within three business days of the start of the tolling and within three business days of the resumption of the time limit, the local agency or state agency shall notify the applicant of the tolling and the resumption of the time limit, respectively, by electronic mail and, if applicable, by posting the notification on its internet website in the manner prescribed in subdivision (b) of Section 65913.3.5. (d) (1) If a local agency or state agency finds that a complete application is noncompliant, the local agency or state agency shall provide the applicant with a list of items that are noncompliant and a description of how the application can be remedied by the applicant within the time limits specified in subdivision (c). (2) The local agency or state agency shall provide the list and description authorized by paragraph (1) when it transmits its determination to the applicant as required by subdivision (c). (3) If a local agency or state agency denies a postentitlement phase permit application based on a determination that the 95 AB 1621 — 65 — application is noncompliant, the applicant may attempt to remedy the application. (4) If an applicant submits an application pursuant to paragraph (3), the additional application is subject to the timelines of a new application as specified in subdivision (c). (5) The local agency or state agency shall not request or require any action or inaction as a result of a building inspection undertaken to assess compliance with the applicable building permit standards that would represent a deviation from a previously approved building plan or similar approval for the building permit, unless the local agency’s or state agency’s requirement or request is accompanied by written findings based on substantial evidence in the record that either of the following apply: (A) A reasonable person could not interpret the building plan or similar approval that was approved by the local agency or state agency as being compliant with the applicable standards for the building permit. (B) The deviation is necessary to address a specific, adverse impact on public health or safety. (e) (1) If a postentitlement phase permit is determined to be incomplete under subdivision (b) or denied or determined to be noncompliant under subdivision (c) or (d), the local agency or state agency shall provide a process for the applicant to appeal that decision in writing to the governing body of the agency. (2) (A) With respect to a postentitlement phase permit concerning housing development projects with 25 units or fewer, a local agency or state agency on the appeal shall provide a final written determination by not later than 30 business days after receipt of the applicant’s written appeal. (B) With respect to a postentitlement phase permit concerning housing development projects with 26 units or more, a local agency or state agency on the appeal shall provide a final written determination by not later than 45 business days after receipt of the applicant’s written appeal. (3) If the applicant’s appeal pursuant to this subdivision is denied, or a decision on the appeal is not made within the timelines provided, or an appeals process is not provided as required, the applicant may seek a writ of mandate to compel approval of the application. 95 — 66 — AB 1621 (f) If a local agency violates subdivisions (b) to (e), inclusive, it shall be in violation of Section 65589.5. (g) If a state agency violates subdivisions (b) to (e), inclusive, the permit shall be deemed approved and any related reviews shall be deemed complete. (h) Except as provided in subparagraph (C) of paragraph (1) of, and subparagraph (C) of paragraph (2) of, subdivision (c), this section does not place limitations on the amount of feedback that a local agency or state agency may provide or revisions that a local agency or state agency may request of an applicant. (i) For residential or residential mixed-use developments that are subject to the requirements set forth in Section 65913.4, the provisions of paragraph (2) of subdivision (h) of Section 65913.4 shall apply. Permits for these developments that are subject to paragraph (2) of subdivision (h) of Section 65913.4 shall not be in conflict with the requirements of this section. The local agency or state agency shall comply with both sets of standards. (j) This section does not preclude an applicant and a local agency or state agency from mutually agreeing to an extension of any time limit provided by this section. However, a local agency or state agency shall not require an agreement as a condition of accepting the application for, or processing of, a postentitlement phase permit, unless the agreement is obtained for the purpose of permitting concurrent processing of related approvals or an environmental review on the same housing development project. (k) For purposes of this section, the following definitions apply: (1) “Housing development project” has the same meaning as in paragraph (3) of subdivision (b) of Section 65905.5. (2) “Local agency” means any county, city, or city and county. (3) (A) “Postentitlement phase permit” includes all of the following: (i) All nondiscretionary permits and reviews that are required or issued by the local agency after the entitlement process has been completed to begin construction of a development that is intended to be at least two-thirds residential, excluding discretionary and ministerial planning permits, entitlements, and other permits and reviews that are covered under Chapter 4.5 (commencing with Section 65920). A postentitlement phase permit includes, but is not limited to, all of the following: 95 AB 1621 — 67 — (I) Building permits, and all interdepartmental reviews required for the issuance of a building permit, including plan checking and building inspection. (II) Permits for minor or standard offsite improvements. (III) Permits for demolition. (IV) Permits for minor or standard excavation and grading. (ii) All building permits and other permits issued under the California Building Standards Code (Title 24 of the California Code of Regulations) or any applicable local building code for the construction, demolition, or alteration of buildings, whether discretionary or nondiscretionary. (iii) (I) Except as provided in subclause (II), any postentitlement review by a state agency that is necessary to begin construction of a development that is intended to be at least two-thirds residential, excluding discretionary and ministerial planning permits, entitlements, and other permits and reviews that are covered under Chapter 4.5 (commencing with Section 65920). (II) Notwithstanding subclause (I), a postentitlement phase permit does not include either of the following: (ia) A permit issued by a state agency acting pursuant to delegated federal permitting or enforcement authority under the federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.) or the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.). (ib) A permit authorizing discharges of waste to waters of the state. (B) A local agency or state agency may identify a threshold for determining whether a permit constitutes a “minor” or “standard” permit for the purposes of this paragraph, which shall be supported by written findings. A local agency that identifies a threshold pursuant to this subparagraph shall adopt the threshold by ordinance. (C) A postentitlement phase permit does not include a permit required and issued by the California Coastal Commission, a special district, or a utility that is not owned and operated by a local agency. (4) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. 95 — 68 — AB 1621 (5) “State agency” has the same meaning as that term is defined in Section 11000. SEC. 3. The amendments of subclause (I) of clause (i) of subparagraph (A) of paragraph (3) of subdivision (k) of Section 65913.3 of the Government Code made by this act do not constitute a change in, but are declaratory of, existing law. SEC. 4. The Legislature finds and declares that Section 2 of this act amending Section 65913.3 of the Government Code addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act applies to all cities, including charter cities. SEC. 5. Section 1.5 of this bill incorporates amendments to Section 65589.5 of the Government Code proposed by both this bill and Senate Bill 1072. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 65589.5 of the Government Code, and (3) this bill is enacted after Senate Bill 1072, in which case Section 1 of this bill shall not become operative. SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. 95 AB 1621 — 69 — Approved , 2026 Governor 10/5/2026 1 Administration Committee October 14, 2026 2027 Draft Legislative and Regulatory Plan Presented by: Rebecca Long Principal Public Affairs Specialist 2 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 congressionally or legislatively directed funding.. 1 2 10/5/2026 2 3 Legislative - Regulatory Team OC San: •Rob Thompson •Jennifer Cabral •Daisy Covarrubias •Rebecca Long •Lan Wiborg •Sam Choi •Mark Kawamoto •Tom Meregillano Consultants: •Cori Takkinen – Townsend Public Affairs •Eric O’Donnell– Townsend Public Affairs •Kerri West– Townsend Public Affairs •Eric Sapirstein – ENS Resources •Sarah Sapirstein – ENS Resources •David French– ENS Resources •Peter Whittingham – Whittingham Public Affairs 4 Procedures for Taking a Position 3 4 10/5/2026 3 5 How The Plan Is Developed •Committee Feedback Throughout the Year •Obtain Feedback From OC San Staff/Subject Matter Experts •Work with State and Federal Lobbyists •Share with Various Organizations: •California Association of Sanitation Agencies •California Special Districts Association •Orange County Water District •Municipal Water District of Orange County •Irvine Ranch Water District •Committee Review and Input •Board Adoption in November 6 What’s New? 5 6 10/5/2026 4 7 Additions to the Plan •Artificial Intelligence (AI): Support legislation and policies that promote the responsible, ethical, and transparent use of artificial intelligence to improve public sector operations, enhance service delivery, protect privacy and security, and encourage innovation, while ensuring appropriate oversight, accountability, and workforceconsiderations. •Support employment litigation reforms that promote the earlyresolution of employment matters, protect employee rights, andsafeguard public employers from meritless claims and unnecessarylitigation costs. 8 Provide comments and direction in preparation for the final document. Final Plan 7 8 10/5/2026 5 •Information Item. Recommendation 9 9 10/5/2026 1 Federal Update 1 Eric Sapirstein E N S Resources, Inc. October 14, 2026 Presented To: Administration Committee 2 Legislative Issues: Clean Water and Infrastructure, Per- and Polyfluoroalkyl Substances (PFAS) Liability, and Flushable Wipes Regulatory Issues: PFAS and Biosolids, Effluent Limitations Guidelines, Waters of the United States Mid-Term Elections and Lame Duck Session Issues Page 2 1 2 10/5/2026 2 U.S. Environmental Protection Agency Fiscal Year 2027 Appropriations—Continuing Resolution USEPA Funding : Current Year Funding for All Programs $1.6 Billion Clean Water State Revolving Loan Fund $ O Earmarks Continued Support of Water Infrastructure Finance and Innovation Act (WIFIA) Program Continued Funding of per- and polyfluoroalkyl substances (PFAS) Research PFAS Contamination Liability and Funding Senate and House Legislation Granting Water Sector Liability Exemption: Wastewater and Biosolids Representative Scott Peters (D-CA) 3 Legislative Issues Page Wastewater Infrastructure Pollution Prevention and Environmental Safety Act or the WIPPES Act House Final Passage of Senate Version Permitting Reform Senate Committees on Environment and Public Works/Energy and Natural Resources Finalizing Lame Duck Session Key Issue: Renewable Energy Approvals Ten-Year Permits and Streamlining National Environmental Policy Act Studies (NEPA) 4 Legislative Issues Page 3 4 10/5/2026 3 5 Biosolids and PFAS Land Application Guidance Under Final Review Rollback of National Pollutant Discharge Elimination System PFAS Monitoring Guidance Effluent Limitation Guidelines Delayed California Alternative Fleet Vehicles Waiver Regulatory Issues Page House Red Undertow,Blue Trickle or Status Quo?Growing Number of Competitive Seats Party Control Turns Focus to Infrastructure & Reverse Rule Rescissions Investigations Senate in Play Increase Contested Seats Change Creates New Chairmen and Policy Focus Lame Duck Session Productive or Not AI and Data Centers PFAS Liability ExemptionFiscal Year 2027 Appropriations Permit Reform Mid-Term Elections and Lame Duck Session Outlook Page 6 5 6 10/5/2026 4 Eric Sapirstein President Sarah Sapirstein Executive Vice President 1367 Connecticut Avenue, N.W. Suite 310 Washington, D.C. 20036 WWW.ENSRESOURCES.COM 7Page 7 ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5142 Agenda Date:10/28/2026 Agenda Item No:12. FROM:Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: SERVER HARDWARE REFRESH FOR INDUSTRIAL CONTROL SYSTEM AND ENTERPRISE OFFICE NETWORKS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve an Equipment Contract to Nth Generation Computing, Inc. for the procurement of HPE vSAN Ready Nodes for the Enterprise and SCADA Environment, Specification No. E- 2026-743BD for a total amount not to exceed $7,557,229 plus applicable sales tax; and B. Approve a contingency in the amount of $755,723 (10%). BACKGROUND Orange County Sanitation District (OC San)operates separate server infrastructure for its Industrial Control System (ICS)and Enterprise Office networks.The ICS server hardware is approaching the end of its useful service life in July 2027,while the Office server hardware,purchased in February 2024,remains serviceable.However,significant increases in licensing costs for both the virtualization and hyperconverged infrastructure platforms prompted IT to re-evaluate its infrastructure strategy.IT determined that consolidating onto the existing virtualization platform, which now includes integrated storage capabilities,offers a more practical and cost-effective long- term approach while maintaining compatibility with existing systems. 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 The ICS server hardware will reach end of life in July 2027 and must be replaced to maintain a reliable,supported environment for critical operational systems.Although the existing Office server hardware remains serviceable,it does not meet the requirements of the selected consolidatedOrange County Sanitation District Printed on 10/15/2026Page 1 of 3 powered by Legistar™ File #:2026-5142 Agenda Date:10/28/2026 Agenda Item No:12. hardware remains serviceable,it does not meet the requirements of the selected consolidated infrastructure platform.Maintaining the current configuration would require OC San to continue licensing and supporting two separate platforms,leading to higher ongoing costs and greater infrastructure complexity. PROPOSED SOLUTION Staff recommends purchasing new server hardware for the ICS and Office environments to establish a common infrastructure platform while maintaining the required separation between the two networks.This approach will replace aging ICS equipment,enable Office infrastructure consolidation,reduce ongoing licensing and support costs,and simplify future administration and maintenance. The existing Office server hardware remains serviceable for approximately two more years;however, it does not meet the requirements of the selected consolidated infrastructure platform.Maintaining the current configuration would require us to continue licensing and supporting two separate platforms,resulting in higher ongoing costs and additional infrastructure complexity.As part of the consolidation,we will evaluate the existing Office server hardware for reuse in other appropriate applications to maximize OC San’s existing investment and reduce unnecessary equipment purchases. TIMING CONCERNS Adequate time is needed for equipment procurement,installation,system migration,and testing before July 2027 ICS hardware end-of-life date.In addition,increased global demand for memory and other components,driven in part by growth in AI computing infrastructure,has extended server delivery lead times to three to six months.Proceeding with the purchase will reduce the risk of supply-chain delays that could affect the planned implementation schedule. RAMIFICATIONS OF NOT TAKING ACTION Not purchasing the new hardware will keep the ICS environment operating on aging hardware beyond its planned service life,increasing the risk of equipment failure,limited manufacturer support, and potential service disruptions.Additionally,OC San would need to maintain separate infrastructure platforms, resulting in higher ongoing licensing and support costs. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION An invitation for bid was issued on September 1,2026,via OpenGov.Bids were due on September 22, 2026, and OC San received three (3) bids. The bid submitted by vPrime Tech Inc.was disqualified due to the absence of pricing information in OpenGov.Although vPrime Tech Inc.provided a quote as an attachment,it did not include pricing for all required line items. Orange County Sanitation District Printed on 10/15/2026Page 2 of 3 powered by Legistar™ File #:2026-5142 Agenda Date:10/28/2026 Agenda Item No:12. The protest period ended on 9/30/2026 at 4:00 PM. Bid Results The following is a list of the firms who submitted a bid. Company Name Bid Determination Nth Generation Computing, Inc.$7,557,228.80 Responsive Blue Source Group, Inc.$15,114,526.64 Responsive vPrime Tech Inc.$0.00 Non-Responsive Recommendation Based on these results,staff recommends approving the Equipment Contract to Nth Generation Computing,Inc.The term of this Equipment Contract will begin upon effective date of the Notice to Proceed. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San's Purchasing Ordinance.This item has been budgeted (Budget FY 2026-27 and 2027-28,Section 8,Pages 4 and 6,Information Management Systems) and the budget is sufficient for the recommended action. ATTACHMENT ·Equipment Contract Orange County Sanitation District Printed on 10/15/2026Page 3 of 3 powered by Legistar™ Equipment Contract 1 of 7 Specification No. E-2026-743BD Revision 121624 EQUIPMENT CONTRACT HPE vSAN Ready Nodes for the Enterprise and SCADA Environment Specification No. E-2026-743BD This EQUIPMENT CONTRACT (hereinafter referred to as “Contract”), is made and entered into as of the date fully executed below, by and between Orange County Sanitation District (hereinafter referred to as “OC San”) and Nth Generation Computing, Inc. (hereinafter referred to as “Vendor”), and collectively referred to herein as the “Parties.” R E C I T A L S WHEREAS, OC San desires to acquire HPE vSAN Ready Nodes (“Equipment”) as described in Exhibit A attached hereto and incorporated herein by this reference (“Equipment); and WHEREAS, Vendor may provide the Equipment and is qualified as an Authorized Supplier; and WHEREAS, OC San desires to engage Vendor to provide the Equipment; and WHEREAS, OC San selected Vendor to provide the Equipment in accordance with OC San’s current Purchasing Ordinance; and WHEREAS, on October 28, 2026, OC San’s Board of Directors, by minute order, authorized execution of this Contract. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits specified below, the Parties agree as follows: 1. General. 1.1 This Contract and all exhibits hereto are made by OC San and the Vendor. 1.2 The following exhibits, in order of precedence, are incorporated by reference and made part of this Contract. Exhibit A – Technical Specifications Exhibit B – Bid Exhibit C – Determined Insurance Requirement Form 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions in the Contract shall control and thereafter the provisions in the document highest in precedence shall be controlling. 1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses, or actions incurred or undertaken by Vendor as a result of work performed in anticipation of acquisition of the Equipment by OC San. 1.5 Work: Shall mean all work, labor, and materials necessary to provide the Equipment. 1.6 The provisions of this Contract may be amended or waived only by an amendment executed by authorized representatives of both Parties. Equipment Contract 2 of 7 Specification No. E-2026-743BD Revision 121624 1.7 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. 2. Scope of Work. 2.1 Vendor shall provide the Equipment identified in Exhibit A in accordance with generally accepted industry and professional standards. 2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of Work at any time. All modifications must be made by an amendment signed by both Parties. 2.3 Familiarity with Equipment. By executing this Contract, Vendor warrants that: (a) it has investigated the Equipment.; Should Vendor discover any latent or unknown condition materially differing from those inherent in the Equipment or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Vendor’s risk, until written instructions are received from OC San. 3. Compensation. 3.1 As compensation for the Equipment provided under this Contract, OC San shall pay Vendor a total amount not to exceed Seven Million, Five Hundred Fifty-Seven Thousand, Two Hundred Twenty-Eight Dollars and Eighty Cents ($7,557,228.80). 4. Payments and Invoicing. 4.1 OC San shall pay itemized invoices for equipment delivered in Table 1A and Table 1B in accordance with Exhibit A thirty (30) days from receipt of the invoice and after approval by OC San’s Project Manager or designee. OC San shall be the determining party, in its sole discretion, as to whether the Equipment has been satisfactorily delivered. 4.2 OC San shall Pay itemized invoices for equipment delivered after July 1, 2027, in Table 2 in accordance with Exhibit A thirty (30) days from receipt of the invoice and after approval by OC San’s Project Manager or designee. OC San shall be the determining party, in its sole discretion, as to whether the Equipment has been satisfactorily delivered. 4.3 Vendor shall submit its invoices to OC San Accounts Payable by electronic mail to APStaff@OCSan.gov. In the subject line include “INVOICE” and the Purchase Order Number. 5. Freight (F.O.B. Destination). Vendor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 6. Insurance. Vendor shall purchase and maintain, throughout the term of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Exhibit C – Determined Insurance Requirement Form. Vendor shall not provide equipment under this Contract until all required insurance is obtained in a form acceptable to OC San. Failure to obtain and maintain the required insurance coverage shall result in termination of this Contract. Equipment Contract 3 of 7 Specification No. E-2026-743BD Revision 121624 7. Independent Contractor. The relationship between the Parties hereto is that of an independent contractor and nothing herein shall be deemed to make Vendor an OC San employee. During the performance of this Contract, Vendor and its officers, employees, and agents shall act in an independent capacity and shall not act as OC San’s officers, employees, or agents. Vendor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OC San’s employees. 8. Disclosure. Vendor agrees not to disclose, to any third party, data or information generated from this Contract without the prior written consent from OC San. 9. Non-Liability of OC San Officers and Employees. No officer or employee of OC San shall be personally liable to Vendor, or any successor-in-interest, in the event of any default or breach by OC San, or for any amount which may become due to Vendor or to its successor, or for breach of any obligation under the terms of this Contract. 10. Third-Party Rights. Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OC San and Vendor. 11. Applicable Laws and Regulations. Vendor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Vendor also agrees to indemnify and hold OC San harmless from any and all damages and liabilities assessed against OC San as a result of Vendor’s noncompliance therewith. Any provision required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically included or referenced. 12. Licenses, Permits, Ordinances, and Regulations. Vendor represents and warrants to OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to provide the Equipment. Any and all fees required by Federal, State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work performed under this Contract will be paid by Vendor. 13. Warranties. The following shall apply: 13.1 Manufacturer’s standard warranty shall apply. All manufacturer warranties shall commence on the date of acceptance of the equipment as complete by the OC San Project Manager or designee. 13.2 Vendor’s Warranty (Guarantee): If within a one (1) year period of acceptance of the equipment specified in Exhibit A, OC San informs Vendor that any portion of the Equipment provided fails to meet the standards required under this Contract, Vendor shall, within the time agreed to by OC San and Vendor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Vendor's sole expense. 14. Dispute Resolution. 14.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County Equipment Contract 4 of 7 Specification No. E-2026-743BD Revision 121624 (“JAMS”), or any similar organization or entity conducting an alternate dispute resolution process. 14.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to Code of Civil Procedure, Part 3, Title 9, sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to Code of Civil Procedure section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator’s decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 15. Remedies. In addition to other remedies available in law or equity, if the Vendor fails to make delivery of the Equipment or repudiates its obligations under this Contract, or if OC San rejects the goods or revokes acceptance of the Equipment, OC San may (a) cancel the Contract; (b) recover whatever amount of the purchase price OC San has paid, and/or (c) “cover” by purchasing, or contracting to purchase, substitute equipment for those due from Vendor. In the event OC San elects to “cover” as described in (c), OC San shall be entitled to recover from Vendor as damages the difference between the cost of the substitute equipment and the Contract price, together with any incidental or consequential damages. 16. Force Majeure. Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government, or any other cause beyond its control, but the affected party shall use reasonable efforts to minimize the extent of the delay. Equipment Delivery affected by a force majeure condition may be rescheduled by mutual consent of the Parties. 17. Termination. 17.1 OC San reserves the right to terminate this Contract immediately upon OC San’s determination that Vendor is not complying with the Scope of Work requirements, if the level of service is inadequate, or for any other default of this Contract. 17.2 OC San may also immediately terminate this Contract for default, in whole or in part, by written notice to Vendor:  if Vendor becomes insolvent or files a petition under the Bankruptcy Act; or  if Vendor sells its business; or  if Vendor breaches any of the terms of this Contract; or  if the total amount of compensation exceeds the amount authorized under this Contract. 18. Attorney’s Fees. If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and Equipment Contract 5 of 7 Specification No. E-2026-743BD Revision 121624 necessary disbursements in addition to any other relief to which the prevailing party may be entitled. 19. Waiver. The waiver by either party of any breach or violation of, or default under, any provision of this Contract shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Vendor to which OC San does not object shall not operate as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach. 20. Severability. If any section, subsection, or provision of this Contract; or any agreement or instrument contemplated hereby; or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection, or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 21. Survival. The provisions of this Contract dealing with payment, warranty, indemnity, and forum for enforcement shall survive expiration or early termination of this Contract. 22. Governing Law. This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange in the event any action is brought in connection with this Contract or the performance thereof. 23. Notices. 23.1 All notices under this Contract must be in writing. Written notice shall be delivered by personal service, by electronic telecommunication, or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand, or request sent. All notices shall be effective when first received at the following addresses: OC San: Jeremey Arbiso Sr. Buyer Orange County Sanitation District 18480 Bandilier Circle Fountain Valley, CA 92708 Jarbiso@ocsan.gov Vendor: Joyce Russell EVP/CFO Nth Generation Computing, Inc. 17055 Camino San Bernardo San Diego, CA 92127 Joyce.russell@nth.com 23.2 Each party shall provide the other party written notice of any change in address as soon as practicable. Equipment Contract 6 of 7 Specification No. E-2026-743BD Revision 121624 24. Read and Understood. By signing this Contract, Vendor represents that it has read and understood the terms and conditions of the Contract. 25. Authority to Execute. The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 26. Entire Agreement. This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral communications and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. [Intentionally left blank. Signatures follow on the next page.] Equipment Contract 7 of 7 Specification No. E-2026-743BD Revision 121624 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by their duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By: Jon Dumitru Chair, Board of Directors Dated: _________________ By: Kelly A. Lore Clerk of the Board Dated: _________________ By: Kevin Work Purchasing & Contracts Manager NTH GENERATION COMPUTING, INC. Dated: _________________ By: Print Name and Title of Officer JA EXHIBIT A Specification No. E-2026-743BD EXHIBIT A TECHNICAL SPECIFICATIONS For HPE vSAN Ready Nodes for the Enterprise and SCADA Environment EXHIBIT A Specification No. E-2026-743BD EXHIBIT A TECHNICAL SPECIFICATIONS For HPE vSAN Ready Nodes for the Enterprise and SCADA Environment E-2026-743BD 1.PURPOSE The Orange County Sanitation District (OC San) is seeking an Authorized Partner to provide HPE vSAN Ready Nodes. 2.SUMMARY OF GOODS TO BE PROVIDED OC San intends to procure HPE vSAN Ready Nodes in two separate batches. The first batch, as detailed in Table 1A and Table 1B, is scheduled for delivery as soon as product is available. The second batch, outlined in Table 2, shall be delivered no earlier than July 1, 2027, following the issuance of the Purchase Order. Partial shipments are permissible; however, the aggregate quantity delivered in the first batch must not exceed the quantities specified in Table 1A and Table 1B. The items and quantities listed in Table 2 must be retained by the Supplier until July 1, 2027. OC San guarantees the purchase of all items and quantities specified but cannot accept delivery or be invoiced for Table 2 prior to July 1, 2027. OC San operates on a two-year budget cycle and has allocated funds for the total quantities indicated in Table 1A, Table 1B and Table 2. Table 1A – Immediate Delivery VCF vSAN DMZ CLUSTER HARDWARE Part # Description Quantity HPE ProLiant Compute DL3XX Gen 12 Rear 2SFF U.3 HDD Stacking Drive HPE 32GB (1x32GB) Dual Rank x8 DDR5-6400 CAS-52-52-52 EC8 EXHIBIT A Specification No. E-2026-743BD HPE 7.68TB NVMe Gen4 Mainstream Performance Read Intensive SFF BC HPE ProLiant DL380 Gen11 2U x16/x16/x16 HPE 1600W Flex Slot Platinum Hot Plug HPE ProLiant Compute DL3XX/ML350 Gen12 CPU1 to Rear OCP SlotB x8 HPE ProLiant Compute DL380 Gen12 8SFF x4 Direct Attach Box 1 for 2 HPE ProLiant Compute DL380 Gen12 8SFF x4 Direct Attach Box 2/3 for 1P HPE ProLiant Compute DL380 Gen12 NS204i-u Rear Boot Device HPE ProLiant Compute DL380 Gen12 16SFF x4 Direct Attach Balanced FIO HPE ProLiant Compute 30C Maximum Recommended Ambient Temperature SFP-25G-SR- SOFTWARE 8 SUPPORT SUBSCRIPTION EXHIBIT A Specification No. E-2026-743BD Table 1B – Immediate Delivery VCF vSAN DARKSITE CLUSTER HARDWARE Part # Description Quantity HPE 32GB (1x32GB) Dual Rank x8 DDR5 -6400 CAS-52-52-52 EC8 HPE ProLiant Compute DL3XX Gen12 Rear 2SFF U.3 HDD Stacking Drive HPE 1.6TB NVMe Gen4 High Performance Mixed Use SFF BC U.3 PM 1735a HPE 7.68TB NVMe Gen4 Mainstream Performance Read Intensive SFF BC Broadcom BCM57414 Ethernet 10/25Gb 2- port SFP28 OCP3 Adapter for HPE C13 - C14 250V 10Amp 2m FIO PowerHPE C13 - C14 250V 10Amp 2m HPE ProLiant Compute DL3XX/ML350 Gen12 CPU1 to Rear OCP SlotB x8 HPE ProLiant Compute DL380 Gen12 8SFF x4 Direct Attach Box 1 for 2 HPE ProLiant Compute DL380 Gen12 8SFF x4 Direct Attach Box 2/3 for 1P EXHIBIT A Specification No. E-2026-743BD HPE ProLiant Compute DL380 Gen12 NS204i-u Rear Boot Device HPE ProLiant Compute DL380 Gen12 16SFF x4 Direct Attach Balanced FIO HPE NS204i-u v2 480GB NVMe Hot Plug Boot Optimized Storage HPE ProLiant Compute 30C Maximum Recommended Ambient Temperature SOFTWARE SUPPORT SUBSCRIPTION HPE 25G Optics Table 2 – Delivery and Invoice no earlier than July 1, 2027 VCF vSAN ENTERPRISE CLUSTER HARDWARE Part # Description Quantity VCF vSAN Office 768GB w NVMe DMR RC HPE 32GB (1x32GB) Dual Rank x8 DDR5 -6400 CAS-52-52-52 EC8 HPE ProLiant Compute DL3XX Gen12 Rear 2SFF U.3 HDD Stacking Drive HPE 1.6TB NVMe Gen4 High Performance Mixed Use SFF BC U.3 PM 1735a HPE 7.68TB NVMe Gen4 Mainstream Performance Read Intensive SFF BC Broadcom BCM57414 Ethernet 10/25Gb 2- port SFP28 OCP3 Adapter for EXHIBIT A Specification No. E-2026-743BD HPE ProLiant Compute DL3XX/ML350 Gen12 CPU1 to Rear OCP SlotB x8 HPE ProLiant Compute DL380 Gen12 8SFF x4 Direct Attach Box 1 for 2 HPE ProLiant Compute DL380 Gen12 8SFF x4 Direct Attach Box 2/3 for 1P HPE ProLiant Compute DL380 Gen12 NS204i-u Rear Boot Device HPE ProLiant Compute DL380 Gen12 16SFF x4 Direct Attach Balanced FIO BOOT OPTIMIZED STORAGE DEVICE HPE ProLiant Compute 30C Maximum Recommended Ambient Temperature SOFTWARE SUPPORT SUBSCRIPTION HPE 25G OPTICS NOTES: •All Bid items shall be FOB Destination. Exclude Applicable Sales Tax. OC Sanwill add Applicable Sales Tax to the Purchase Order. •Bidders must bid on all line items. Not Bidding on all line items deems the Bidsubmitted as Non-Responsive. •OC San guarantees buying all equipment. •Bidders MUST submit their quote with their bid which details each line item costand the specified quantities. •HARDWARE in Table 1A, Table 1B and Table 2 MUST BE DELIVERED FULLYASSEMBLED TO OC SAN. ADMINISTRATION COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5143 Agenda Date:10/28/2026 Agenda Item No:13. FROM:Robert Thompson, General Manager Originator: Laura Maravilla, Director of Human Resources SUBJECT: PROPOSED POSITION CHANGES FOR FISCAL YEAR 2026-27 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve the addition of one (1) new position, the upgrade of one (1) position, and the downgrade of one (1) position for FY 2026-2027 as follows: A. Add one (1) Safety Inspector (Salary Grade OCE78); B. Upgrade one (1) Staff Analyst (Salary Grade PRO70) to Senior Staff Analyst (Salary Grade PRO76); and C. Downgrade one (1) Maintenance Manager (Salary Grade EM16) to Maintenance Superintendent (Salary Grade SUP90). BACKGROUND Since adoption of the Fiscal Year 2026-27 budget,the Orange County Sanitation District (OC San) identified position changes that are needed to support operational requirements that include one additional position, one upgrade, and one downgrade. Specifically, staff recommends: ·The addition of one (1)Safety Inspector position to provide dedicated construction safety oversight,ensure contractor compliance,and align safety resources with current operational demands in support of the Capital Improvement Program (CIP)projects and maintenance construction activities. ·The upgrade of one (1)Staff Analyst position to Senior Staff Analyst.In accordance with OC San policy,employees may periodically request a classification study to evaluate whether their assigned duties and responsibilities are appropriately classified.A recent study determined that the current duties and responsibilities of this position are most appropriately assigned at the Senior Staff Analyst level as the scope and complexity of work assigned have evolved requiring increased capacity and higher-level analytical support. ·The downgrade of one (1)vacant Maintenance Manager position to Maintenance Orange County Sanitation District Printed on 10/15/2026Page 1 of 3 powered by Legistar™ File #:2026-5143 Agenda Date:10/28/2026 Agenda Item No:13. ·The downgrade of one (1)vacant Maintenance Manager position to Maintenance Superintendent.Following a recent reorganization and the incorporation of the Civil Facilities Maintenance and Fleet Services divisions into the Operations &Maintenance Department,the organization,structure,and oversight needs have changed.A dedicated Manager-level position is no longer warranted,and the functions can be appropriately overseen at the Maintenance Superintendent level. The proposed position requests would change the approved full-time equivalent (FTE)total from 699.5 to 700.5 for Fiscal Year 2026-27. RELEVANT STANDARDS ·Ensure the public’s money is wisely spent ·Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM Organizational and operational staffing needs have arisen that were not anticipated during preparation of the adopted FY 2026-27 budget. PROPOSED SOLUTION Approve the proposed FY 2026-27 position requests,including the addition of (1)position,the upgrade of one (1) position, and the downgrade of one (1) position, effective immediately. TIMING CONCERNS Staff recommend approval during the current fiscal year to timely address identified operational and organizational staffing needs. RAMIFICATIONS OF NOT TAKING ACTION Deferring action would limit OC San’s ability to provide appropriate resources to support operational and business needs. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A Orange County Sanitation District Printed on 10/15/2026Page 2 of 3 powered by Legistar™ File #:2026-5143 Agenda Date:10/28/2026 Agenda Item No:13. FINANCIAL CONSIDERATIONS The FY 2026-27 Budget provides sufficient funding for the recommended action,with the associated costs of $143,270.40 to be offset by savings generated from positions that may remain unfilled through normal attrition. 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 10/15/2026Page 3 of 3 powered by Legistar™ STEERING COMMITTEE Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5149 Agenda Date:10/28/2026 Agenda Item No:14. FROM:Robert Thompson, General Manager Originator: Laura Maravilla, Director of Human Resources SUBJECT: CLASSIFICATION & COMPENSATION STUDIES, SPECIFICATION NO. CS-2026-734BD GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Professional Consultant Services Agreement with Gallagher Benefit Services, Inc., to conduct Classification and Compensation Studies, Specification No. CS-2026-734BD, for a total amount not to exceed $285,000; and B. Approve a contingency of $28,500 (10%). BACKGROUND The Orange County Sanitation District (OC San)periodically conducts comprehensive Classification and Compensation (C&C)Studies to support effective operations,sound workforce management, fiscal stewardship and labor relations.These studies help ensure that classification specifications (job descriptions)accurately reflect assigned duties and responsibilities,and remain aligned with organizational needs as operations,service delivery,technology,regulatory requirements and workforce needs evolve.The studies also provide information to evaluate internal classification relationships and ensure OC San’s compensation practices remain internally equitable and competitive within the relevant labor market. A well-designed classification and compensation system provides a framework for informed administrative,fiscal,and human resources decisions.Accurate,current,and legally compliant job descriptions support key workforce functions including recruitment,performance management, compensation,training and development,and succession planning.Maintaining a competitive and equitable compensation program further supports OC San’s ability to attract and retain a qualified workforce necessary to meet current and future operational needs. RELEVANT STANDARDS ·Offer competitive compensation and benefits ·Negotiate fair and equitable labor agreements ·Maintain positive employer-employee relations ·Comply with Government Codes (Fair Labor Standards Act,Americans with Disabilities Act,Orange County Sanitation District Printed on 10/20/2026Page 1 of 4 powered by Legistar™ File #:2026-5149 Agenda Date:10/28/2026 Agenda Item No:14. ·Comply with Government Codes (Fair Labor Standards Act,Americans with Disabilities Act, Equal Pay Act) PROBLEM OC San’s last comprehensive C&C Studies were completed in June 2022.Since that time, organizational requirements and labor market conditions have evolved,warranting a comprehensive review to ensure OC San’s C&C structure remains current,equitable and competitive within the relevant labor market. PROPOSED SOLUTION Approve a professional consultant services agreement with Gallagher Benefit Services,Inc.,to conduct comprehensive C&C Studies. TIMING CONCERNS OC San’s current labor contracts will expire on June 30,2028.Timely completion of updated C&C Studies will provide current market and classification data to support upcoming labor negotiations. RAMIFICATIONS OF NOT TAKING ACTION Without updated data,OC San’s ability to prepare for upcoming labor negotiations and to assess market competitiveness, internal equity and classification alignment would be impacted. PRIOR COMMITTEE/BOARD ACTIONS June 2022 -Received and filed the June 2022 Classification Study Final Report and Total Compensation Study Final Report. ADDITIONAL INFORMATION Solicitation Information: A Request for Proposal was issued on July 6,2026,via OpenGov.Proposals were due on July 30, 2026.OC San received six (6)responsive proposals which are valid for 180 days from the bid opening date. Protest Information: None. Evaluation: Prior to receipt of proposals,an evaluation team was formed consisting of OC San staff.The team was chaired by a Purchasing representative as a non-voting member.On August 4,2026,the evaluation team met to discuss the policies and procedures for the evaluation process. Orange County Sanitation District Printed on 10/20/2026Page 2 of 4 powered by Legistar™ File #:2026-5149 Agenda Date:10/28/2026 Agenda Item No:14. Individual scoring was the chosen method of evaluation for this procurement.Members of the team performed an independent review of the proposals and later met as a group with the Buyer to discuss their preliminary scores and discuss any questions/concerns.Proposals were evaluated based on the following criteria: CRITERION POINTS Qualifications & Experience of Firm 300 Proposed Staffing & Project Organization 200 Work Plan 200 Presentation/Interview 200 Cost 100 The evaluation team first reviewed and scored all six (6)proposals based upon the criteria listed above,other than cost.In accordance with procedures,only the four (4)highest ranking firms, Gallagher Benefit Services,Inc.,Evergreen Solutions,MGT Impact Solutions,and Public Sector Personnel Consultants,were selected to move forward to the interview phase.The interviews were conducted on August 18 through August 20,2026.The evaluation team scored the interviews as reflected in the table below. Rank Proposer Criterion 1 (Max 300) Criterion 2 (Max 200) Criterion 3 (Max 200) Criterion 4 (Max 200) Subtotal Score (Max 900) 1 Gallagher Benefit Services, Inc. 286.25 186.25 187.5 195 855 2 Evergreen Solutions, LLC 203.75 128.75 111.25 163 606.75 3 MGT Impact Solutions, LLC 196.25 126.25 125 135 582.5 4 Public Sector Personnel Consultants, Inc. 186.25 130 120 111 547.25 All proposals were accompanied by a sealed cost proposal.Only the cost proposals for the two (2) highest-ranked firms were opened, and one was negotiated. Rank Proposer Subtotal Score (Max 900) Cost (Max 100) Total Score (Max 1,000) 1 Gallagher Benefit Services, Inc. 855 32.83 887.83 2 Evergreen Solutions 606.75 100 706.75 Orange County Sanitation District Printed on 10/20/2026Page 3 of 4 powered by Legistar™ File #:2026-5149 Agenda Date:10/28/2026 Agenda Item No:14. Cost Information for Opened Proposals: Rank Proposer ORIGINAL COST BAFO (if applicable) 1 Gallagher Benefit Services, Inc. $300,000 $285,000 2 Evergreen Solutions $98,500 N/A Recommendation: Based on these results,staff recommend approving the agreement with Gallagher Benefit Services, Inc. The term of this agreement will begin upon effective date of the Notice to Proceed. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with the authority levels of OC San’s Purchasing Ordinance.OC San’s FY 2026/2027 and FY 2027/28 total budget for professional services for Classification and Compensation Studies is $321,000, and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency 10/28/2026 $285,000 $28,500 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·Professional Consultant Services Agreement Orange County Sanitation District Printed on 10/20/2026Page 4 of 4 powered by Legistar™ Professional Consultant Services Agreement 1 of 12 Specification No. CS-2026-734BD Revision 121924 PROFESSIONAL CONSULTANT SERVICES AGREEMENT CLASSIFICATION & COMPENSATION STUDIES 2026 ALL EMPLOYEE GROUPS Specification No. CS-2026-734BD This PROFESSIONAL CONSULTANT SERVICES AGREEMENT (hereinafter referred to as “Agreement”) is made and entered into as of the date fully executed below, by and between Orange County Sanitation District (hereinafter referred to as “OC San”) and Gallagher Benefit Services, Inc. (hereinafter referred to as “Consultant”), and collectively referred to herein as the “Parties.” R E C I T A L S WHEREAS, OC San desires to obtain Classification and Compensation Studies for all employee groups as described in Exhibit A attached hereto and incorporated herein by this reference (“Services”); and WHEREAS, Consultant is qualified to provide the Services by virtue of experience, training, and expertise; and WHEREAS, OC San desires to engage Consultant to render the Services as provided herein; and WHEREAS, OC San selected Consultant to provide the Services in accordance with OC San’s current Purchasing Ordinance; and WHEREAS, on October 28, 2026, OC San’s Board of Directors, by minute order, authorized execution of this Agreement. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits specified below, the Parties agree as follows: 1. General. 1.1 This Agreement and all exhibits hereto are made by OC San and the Consultant. 1.2 The following exhibits, in order of precedence, are incorporated by reference and made part of this Agreement. Exhibit A – Scope of Work Exhibit B – Proposal Exhibit C – Determined Insurance Requirement Form Exhibit D – Contractor Safety Standards Exhibit E – Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions in the Agreement shall control and thereafter the provisions in the document highest in precedence shall be controlling. Exhibit B is incorporated solely with respect to Consultant’s technical approach, identified personnel, schedule, and pricing. No legal term, qualification, disclaimer, assumption, exception, or limitation contained in Exhibit B shall modify this Agreement or have any force or effect unless expressly incorporated into the body of this Agreement. Professional Consultant Services Agreement 2 of 12 Specification No. CS-2026-734BD Revision 121924 1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses, or actions incurred or undertaken by Consultant as a result of work performed in anticipation of purchases of the Services by OC San. 1.5 Work Hours: The work required under the Agreement may include normal business hours, evenings, and weekends. OC San will not pay for travel time. 1.6 Days: Shall mean calendar days, unless otherwise noted. 1.7 OC San holidays (non-working days) are as follows: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The provisions of this Agreement may be amended or waived only by an amendment executed by authorized representatives of both Parties. 1.9 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any paragraph or provision hereof. 2. Scope of Work. 2.1 Consultant shall provide the Services identified in Exhibit A in a competent, professional, and satisfactory manner in accordance with generally accepted industry and professional standards, including fiduciary standards, ethical practices, and standards of care and competence for its trade/profession. 2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of Work at any time. All modifications must be made by an amendment signed by both Parties. 2.3 Familiarity with Work. By executing this Agreement, Consultant warrants that: (a) it has investigated the work to be performed; (b) it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown condition materially differing from those inherent in the work or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Consultant’s risk, until written instructions are received from OC San. 2.4 Performance. Time is of the essence in the performance of the provisions hereof. 3. Agreement Term. 3.1 The term of this Agreement shall commence on the effective date of the Notice to Proceed and continuing through April 30, 2028. 3.2 Extensions. The term of this Agreement may be extended only by an amendment signed by both Parties. 4. Compensation. 4.1 As compensation for the Services provided under this Agreement, OC San shall pay Consultant a total amount not to exceed Two Hundred Eighty-Five Thousand Dollars ($ 285,000.00). Professional Consultant Services Agreement 3 of 12 Specification No. CS-2026-734BD Revision 121924 4.2 Consultant shall provide OC San with all required premiums and/or overtime work at no charge beyond the amount specified above. 4.3 Pricing for Classification & Compensation Studies 2026 All Employee Groups shall remain firm during the Contract period. 5. Payments and Invoicing. 5.1 OC San shall pay itemized invoices for [work, Milestones, Tasks] completed in accordance with Exhibit A and consistent with Exhibit B thirty (30) days from receipt of the invoice and after approval by OC San’s Project Manager or designee. OC San shall be the determining party, in its sole discretion reasonably exercised, as to whether the Services have been satisfactorily completed. 5.2 Consultant shall submit its invoices to OC San Accounts Payable by electronic mail to APStaff@OCSan.gov. In the subject line include “INVOICE” and the Purchase Order Number. 6. Not Used. 7. Key Personnel. Personnel identified in Exhibit B are considered key to the performance of the Services. Consultant shall not remove or replace key personnel without OC San’s prior written approval, which shall not be unreasonably withheld. If prior approval is impracticable because of resignation, illness, termination of employment, or another circumstance beyond Consultant’s reasonable control, Consultant shall notify OC San promptly, and in no event later than three (3) business days after learning of the substitution, and shall propose replacement personnel with qualifications and experience equal to or greater than those of the person being replaced. OC San may reject a proposed replacement that OC San reasonably determines is not qualified or suitable for the Services. Upon OC San’s request, Consultant shall promptly remove and replace any personnel assigned to the Services.” 8. Documents and Intellectual Property. 8.1 OC San shall own all final deliverables and all project-specific reports, classification specifications, spreadsheets, survey data, analyses, presentation materials, and other documents or materials created specifically for OC San in performing the Services, including all editable and native-format files. Consultant shall promptly deliver such materials to OC San upon request and upon expiration or termination of this Agreement. 8.2 Consultant shall retain ownership of its preexisting or independently developed methodologies, processes, know-how, templates, software, and other intellectual property that were developed without the use of OC San’s information or resources (‘Background Materials’). To the extent any Background Materials are incorporated into or necessary to use the deliverables, Consultant grants OC San a perpetual, irrevocable, worldwide, royalty-free, transferable, and sublicensable license to use, reproduce, modify, disclose, distribute, and create derivative works from those Background Materials in connection with the deliverables and OC San’s operations. 8.3 Consultant shall not incorporate third-party materials that restrict OC San’s use or disclosure of the deliverables without OC San’s prior written approval. Nothing in this section shall limit OC San’s obligations or rights under the California Public Records Act or other applicable law. Professional Consultant Services Agreement 4 of 12 Specification No. CS-2026-734BD Revision 121924 9. Not Used. 10. Right to Review Services, Facilities, and Records. 10.1 OC San reserves the right to review any portion of the Services performed by Consultant under this Agreement and Consultant agrees to cooperate to the fullest extent possible in such endeavor. 10.2 Consultant shall furnish to OC San such reports, statistical data, and other information pertaining to Consultant’s Services as shall be reasonably required by OC San to carry out its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bonds and other obligations. 10.3 The right of OC San to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant shall not relieve Consultant of any obligation set forth herein. 11. Conflict of Interest and Reporting. 11.1 Consultant shall, at all times, avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement. 11.2 Consultant affirms that, to the best of its knowledge, there exists no actual or potential conflict between Consultant’s families, business, or financial interest and the Services under this Agreement and in the event of change in either its private interests or Services under this Agreement, it shall raise with OC San any question regarding possible conflict of interest which may arise as a result of such change. 12. Damage to OC San’s Property. Any of OC San’s property damaged by Consultant, any subconsultant, subcontractor, or by the personnel of either will be subject to repair or replacement by Consultant at no cost to OC San. 13. Freight (F.O.B. Destination). Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement. 14. Audit Rights. 14.1 During the term of this Agreement and for three (3) years following final payment, Consultant shall maintain, and OC San shall have access to and the right to examine, all directly pertinent books, documents, and records relating to the Services and invoices submitted under this Agreement. If an audit, claim, or dispute is pending at the end of that period, Consultant shall retain the applicable records until the matter is finally resolved. 14.2 OC San and its auditors will conduct such audits in a manner that will result in a minimum of inconvenience and disruption to Consultant’s business operations. Audits may be conducted only during normal business hours. OC San and its auditors will not be entitled to audit (a) data or information of other customers or clients of Consultant; (b) any cost information unless such is the basis of a reimbursable or pass-through expense; or (c) any other confidential information of Consultant that is not directly relevant for the authorized purposes of the audit. Professional Consultant Services Agreement 5 of 12 Specification No. CS-2026-734BD Revision 121924 15. Contractor Safety Standards and Human Resources Policies. OC San requires Consultant, its subconsultants, and its subcontractors to follow and ensure their employees follow all Federal, State, and local regulations as well as Contractor Safety Standards while working at OC San locations. If, during the course of the Agreement, it is discovered that Contractor Safety Standards do not comply with Federal, State, or local regulations, the Consultant is required to follow the most stringent regulatory requirement at no additional cost to OC San. Consultant, its subconsultants, and all of their employees shall adhere to all applicable Contractor Safety Standards in Exhibit D and the Human Resources Policies in Exhibit E. 16. Insurance. Consultant and all its subconsultants shall purchase and maintain, throughout the term of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Exhibit C – Determined Insurance Requirement Form. Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OC San, nor shall Consultant allow any subconsultant to commence service pursuant to a subcontract until all insurance required of the subconsultant has been obtained. Failure to obtain and maintain the required insurance coverage shall result in termination of this Agreement. 17. Indemnification, Hold Harmless Provision, and Limitation of Liability. 17.1 Consultant shall indemnify and hold harmless OC San and its directors, officers, employees, and agents from and against third-party claims, demands, actions, liabilities, damages, judgments, costs, and expenses, including reasonable attorneys’ fees, to the extent arising out of or caused by: (a) the negligent, reckless, or willful misconduct of Consultant, its employees, subconsultants, or agents in performing the Services; (b) Consultant’s material violation of applicable law in performing the Services; (c) any allegation that the deliverables infringe or misappropriate a third party’s intellectual-property rights; or (d) Consultant’s material breach of its confidentiality, privacy, or information-security obligations. 17.2 Upon written tender of a claim potentially subject to Section 17.1, Consultant shall have the right and obligation to assume the defense using qualified counsel reasonably acceptable to OC San. OC San may participate in the defense with counsel of its choosing at its own expense. Consultant shall not settle a claim in a manner that admits wrongdoing by, imposes an obligation upon, or materially affects the rights of OC San without OC San’s prior written consent, which shall not be unreasonably withheld. If Consultant does not timely assume the defense, OC San may defend the claim and recover its reasonable defense costs to the extent the claim is subject to indemnification under Section 17.1. 17.3 Except for the claims identified in Section 17.4, the aggregate liability of Consultant and its affiliates arising out of or relating to this Agreement, whether in contract, tort, negligence, statute, or otherwise, shall not exceed One Million Dollars ($1,000,000). 17.4 The limitation in Section 17.3 shall not apply to liability arising from Consultant’s fraud, willful misconduct, or gross negligence. Liability arising from intellectual- property infringement or misappropriation, or from a breach of Consultant’s confidentiality, privacy, or information-security obligations, shall be subject to a separate aggregate limit of Two Million Dollars ($2,000,000). 17.5 Neither party shall be liable to the other for any consequential, incidental, indirect, special or punitive damages, loss or expenses (including, but not limited to, lost profits, lost business, loss of anticipated savings, business interruption, or Professional Consultant Services Agreement 6 of 12 Specification No. CS-2026-734BD Revision 121924 reputational damages) arising out of this Agreement. OC San’s reasonable costs of correcting or reperforming deficient Services or obtaining substitute services shall constitute direct damages and shall be subject to the aggregate limitation in Section 17.3. 17.6 This section shall survive expiration or termination of the Agreement.” 18. Independent Contractor. 18.1 The relationship between the Parties hereto is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 18.2 During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act as OC San’s officers, employees, or agents. OC San assumes no liability for Consultant’s action and performance nor assumes responsibility for taxes, funds, payments, or other commitments, expressed or implied, by or for Consultant. 18.3 Consultant shall not be considered an agent of OC San for any purpose whatsoever nor shall Consultant have the right to, and shall not, commit OC San to any agreement, contract, or undertaking. Consultant shall not use OC San’s name in its promotional material or for any advertising or publicity purposes without prior expressed written consent. 18.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on OC San’s payroll as regular employees including, without limitation, worker’s compensation, disability insurance, vacation, or holiday or sick pay. Consultant shall be responsible for providing, at Consultant’s expense, disability, worker’s compensation, and other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder. 18.5 Consultant shall be obligated to pay any and all applicable Federal, State, and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OC San for any claims, losses, costs, fees, liabilities, damages, or penalties suffered by OC San arising out of Consultant’s breach of this provision. 18.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OC San’s payroll as regular employees. Consultant shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OC San misclassified Consultant for tax purposes. 19. Subcontracting and Assignment. Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OC San. Any such attempted delegation or assignment shall be void. 20. Not Used. 21. Confidentiality and Non-Disclosure. 21.1 Consultant acknowledges that, in performing the Services hereunder, OC San may have to disclose to Consultant, orally and in writing, certain confidential information that OC San considers proprietary and has developed at great expense and effort. Professional Consultant Services Agreement 7 of 12 Specification No. CS-2026-734BD Revision 121924 21.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or corporation, without OC San’s prior written consent, any trade secret, confidential information, knowledge, or data relating to the products, process, or operation of OC San. 21.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm, or corporation any data, information, technology, or material developed or obtained by Consultant from OC San for purposes of this Agreement during the term of this Agreement. 21.4 Consultant agrees as follows: 21.4.1 To use the confidential information only for the purposes described herein; to not reproduce the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others. 21.4.2 To restrict access to the confidential information to its subconsultant or personnel of Consultant who (1) have a need to have such access and (2) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement. 21.4.3 Upon OC San’s request or expiration or termination of this Agreement, Consultant shall promptly return or securely destroy all Confidential Information in its active possession or control and, upon request, certify completion in writing. Consultant may retain copies only to the extent required by applicable law or established record-retention requirements, or where maintained in inaccessible disaster-recovery or archival backup systems and not reasonably capable of separate deletion. Any retained Confidential Information shall remain subject to this Agreement, shall not be accessed or used except as legally required or for bona fide disaster- recovery purposes, and shall be deleted in accordance with Consultant’s ordinary records-retention and backup-cycling procedures.”. 21.4.4 To hold in confidence information and materials, if any, developed pursuant to the Services hereunder. 21.4.5 The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential. 22. Non-Liability of OC San Officers and Employees. No officer or employee of OC San shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or breach by OC San or for any amount which may become due to Consultant or to its successor, or for breach of any obligation under the terms of this Agreement. 23. Third-Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OC San and Consultant. 24. Applicable Laws and Regulations. Consultant shall comply with Federal, State, and local laws, rules, and regulations applicable to Consultant in its performance of the Services. Consultant also agrees to indemnify and hold OC San harmless from any and Professional Consultant Services Agreement 8 of 12 Specification No. CS-2026-734BD Revision 121924 all damages and liabilities assessed against OC San as a result of Consultant’s noncompliance therewith. Any provision required by law to be included herein shall be deemed included as a part of this Agreement whether or not specifically included or referenced. 25. Licenses, Permits, Ordinances, and Regulations. Consultant represents and warrants to OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to provide the Services. Any and all fees required by Federal, State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work performed under this Agreement will be paid by Consultant. 26. Regulatory Requirements. Consultant shall perform all work under this Agreement in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and Water Codes Division 2. 27. Environmental Compliance. Consultant shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Consultant, its subconsultants, subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. 28. California Air Resources Board Mobile Source Regulations. Consultant and its applicable subconsultants and subcontractors shall comply with the following California Air Resources Board Mobile Source Regulations: • Advanced Clean Fleet (ACF): 13 CCR 2013-2013.4; 13 CCR 2015-2015.6 • Truck & Bus Regulation (T&B): 13 CCR 2025 • Clean Truck Check (CTC): 13 CCR 2195-2199.1 • Off-Road Diesel Amendments (ORD): 13 CCR 2449-2449.2 29. Dispute Resolution. 29.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County (“JAMS”), or any similar organization or entity conducting an alternate dispute resolution process. 29.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to Code of Civil Procedure, Part 3, Title 9, sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to Code of Civil Procedure section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator’s decision and award shall be subject to review for errors of fact or law in Professional Consultant Services Agreement 9 of 12 Specification No. CS-2026-734BD Revision 121924 the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 30. Remedies. Neither party shall be liable to the other for punitive damages or lost profits arising from this Agreement. This limitation shall not apply to indemnification obligations, third-party claims, confidentiality, privacy or information-security breaches, intellectual- property claims, fraud, gross negligence, recklessness, willful misconduct, violations of law, or OC San’s costs of correcting or reperforming deficient Services, obtaining substitute services, restoring data, or responding to claims or proceedings arising from Consultant’s Services. The damages identified in the preceding sentence shall be deemed direct damages and shall remain recoverable under this Agreement. 31. Force Majeure. Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government, or any other cause beyond its control, but the affected party shall use reasonable efforts to minimize the extent of the delay. Work affected by a force majeure condition may be rescheduled by mutual consent of the Parties. 32. Termination. 32.1 OC San reserves the right to terminate this Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice from OC San. Upon receipt of a termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay Consultant for work performed (cost and fee) through the date of termination. Consultant expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this Agreement and release OC San from any further fee, cost, or claim hereunder by Consultant other than for work performed through the date of termination. 32.2 OC San reserves the right to terminate this Agreement immediately upon OC San’s determination that Consultant is not complying with the Scope of Work requirements, if the level of service is inadequate, or for any other default of this Agreement. 32.3 OC San may also immediately terminate this Agreement for default, in whole or in part, by written notice to Consultant if: • Consultant becomes insolvent or files a petition under the Bankruptcy Act; or • Consultant sells its business; or • Consultant breaches any of the terms of this Agreement; or • The total amount of compensation exceeds the amount authorized under this Agreement. 32.4 All OC San’s property in the possession or control of Consultant shall be returned by Consultant to OC San on demand or at the expiration or termination of this Agreement, whichever occurs first. 33. Attorney’s Fees. If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements in addition to any other relief to which the prevailing party may be entitled. Professional Consultant Services Agreement 10 of 12 Specification No. CS-2026-734BD Revision 121924 34. Waiver. The waiver by either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Consultant to which OC San does not object shall not operate as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach. 35. Severability. If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection, or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 36. Survival. The provisions of this Agreement dealing with payment, warranty, indemnity, and forum for enforcement shall survive expiration or early termination of this Agreement. 37. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange in the event any action is brought in connection with this Agreement or the performance thereof. 38. Notices. 38.1 All notices under this Agreement must be in writing. Written notice shall be delivered by personal service, by electronic telecommunication, or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand, or request sent. All notices shall be effective when first received at the following addresses: OC San: Elsa Garcia Buyer Orange County Sanitation District 18480 Bandilier Circle Fountain Valley, CA 92708 egarcia@ocsan.gov Consultant: Georg S. Krammer Managing Director Gallagher Benefit Services, Inc. 2850 Golf Road Rolling Meadows, IL 60008 georg_krammer@ajg.com 38.2 Each party shall provide the other party written notice of any change in address as soon as practicable. 39. Read and Understood. By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement. 40. Authority to Execute. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound. Professional Consultant Services Agreement 11 of 12 Specification No. CS-2026-734BD Revision 121924 41. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral communications and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. [Intentionally left blank. Signatures follow on the next page.] Professional Consultant Services Agreement 12 of 12 Specification No. CS-2026-734BD Revision 121924 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by their duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By: Jon Dumitru Chair, Board of Directors Dated: _________________ By: Kelly A. Lore Clerk of the Board Dated: _________________ By: Kevin Work Purchasing & Contracts Manager GALLAGHER BENEFIT SERVICES, INC. Dated: _________________ By: Print Name and Title of Officer EXHIBIT A Specification No. CS-2026-734BD EXHIBIT A SCOPE OF WORK For Classification and Compensation Studies 2026 All Employee Groups EXHIBIT A Page 1 of 10 CS-2026-734BD EXHIBIT A SCOPE OF WORK CLASSIFICATION & COMPENSATION STUDIES 2026 ALL GROUPS SPECIFICATION NO. CS-2026-734BD 1.0 PURPOSE The Orange County Sanitation District Human Resources Department (HR) requires a qualified Consultant to conduct comprehensive Classification and Compensation Studies for all employee groups, including a thorough analysis of existing classification and compensation structures, evaluation of internal equity and external competitiveness, and assessment of organizational and workforce needs. The Consultant shall analyze large and complex datasets and provide actionable recommendations to address identified issues and enhance the effectiveness, consistency, and market competitiveness of OC San’s classification and compensation programs. OC San’s intent is to maintain a competitive position within the comparable labor market and has historically targeted an aggregate market position at approximately the 75th percentile. It is understood that the relative position to the market will vary for each job classification (“classification”) and job family and is a fluid measure that may vary at different points in time. The Consultant shall employ current industry best practices, methodologies, technologies, and analytical tools throughout all phases of the studies, including project management, data collection and validation, market survey, stakeholder engagement, communications, analysis, reporting, and presentation of findings and recommendations. The Consultant shall demonstrate the ability to conduct the study efficiently, accurately, and transparently while ensuring meaningful engagement with OC San staff and stakeholders. The primary goals of the Classification and Compensation Studies include: • Review, validate and update classification specifications to ensure they accurately reflect current job duties, responsibilities, reporting relationships, and organizational needs. • Evaluate OC San’s compensation structure to ensure internal equity and alignment across classifications, and identify and recommend solutions to address salary compression/compaction and other pay relationship issues. • Assess OC San’s competitive market position through a comprehensive compensation analysis and provide recommendations to support the recruitment and retention of a highly qualified workforce. • Develop reliable, data-driven findings and recommendations to support labor negotiations, organizational planning, and compensation-related decision-making. 2.0 BACKGROUND INFORMATION OC San employs approximately 640 employees (excluding interns) in executive, management, supervisory, professional, administrative, technical, and trade occupations, across approximately 130 classifications. Approximately 94% of employees are represented by one of the three recognized employee organizations encompassing six bargaining units, including: Supervisor and Professional Management Group (SPMG); Orange County Employees Association (OCEA); and the International Union of Operating Engineers Local 501 (Local 501). The balance consists of EXHIBIT A Page 2 of 10 CS-2026-734BD unrepresented confidential staff (human resources, board services), management, and executive management classifications. OC San most recently completed comprehensive classification and compensation studies for all represented and unrepresented classifications in 2022. Compensation market data was subsequently refreshed in September 2024 and June 2025 for executive and manager classifications, as OC San generally seeks annual market data for this level. OC San maintains an established list of 17 comparator agencies that was developed through negotiations with recognized employee organizations and adopted by the Board of Directors. The Consultant shall utilize this comparator agency framework for market data collection and analysis as part of this classification and compensation study. The following is an initial list of all OC San classifications. Note that classifications listed without incumbents may have positions currently under recruitment, and the actual number of allocated positions within a classification may be higher due to vacancies. A complete list of classifications, allocated positions, and current incumbents will be provided at project initiation. Any classification marked with an asterisk (*) is a legacy classification with incumbents and will sunset once vacated; the classification specification(s) require updating but these classifications are not benchmarks for compensation data. Student Intern (marked **) is the benchmark for intern positions (student and vocational); it is included for salary data collection only and should not be included in Position Description Questionnaires (PDQs), classification specification updates, or aggregate market position calculations. Vocational Intern (**) requires no action in the study. Accountant 3 Accounting Supervisor 3 Accounting Technician 5 Administrative Assistant 14 Assistant Boat Captain 1 Assistant Clerk of the Board 2 Assistant Engineer 2 Assistant General Manager 1 Associate Engineer 15 Automotive/Heavy Equip Tech 4 Boat Captain 1 Building Maintenance Tech 1 Buyer 3 Chief Plant Operator 2 CIP Project Manager* 1 Clerk of the Board 1 Construction Insp Supervisor 2 Construction Inspector 11 Contracts Administrator 3 Contract/Purchasing Technician 3 Contracts Supervisor 1 Cost Estimator 1 Data Mgmt Technician I 3 Data Mgmt Technician II 5 Director of Communications 1 Director of Engineering 1 Director of Environmental Svcs 1 Director of Finance 1 Director of Human Resources 1 Director Operations & Maint 1 Electrical Technician I 3 Electrical Technician II 14 Engineer 27 Engineering Manager 4 Engineering Supervisor 12 Engineering Technician 3 Environmental Prot Mgr 3 Environmental Specialist 6 Environmental Supervisor 4 Environmental Technician 10 Facilities Worker 5 Finance Manager 1 General Manager 1 Graphics Designer 2 Human Resources Analyst 3 Human Resources Manager 1 EXHIBIT A Page 3 of 10 CS-2026-734BD Human Resources Supervisor 2 Human Resources Technician I 0 Human Resources Technician II 3 Information Tech Analyst II 6 Information Tech Analyst III 11 Information Tech Manager 1 Information Tech Supervisor 5 Information Tech Technician 2 Instrumentation Technician I 3 Instrumentation Technician II 14 Lead Electrical Technician 7 Lead Instrumentation Tech 4 Lead Materials Mgmt Clerk 1 Lead Mechanic 12 Lead Plant Operator 6 Lead Power Plant Operator 2 Lead Source Control Inspector 1 Machinist 1 Maintenance Manager 3 Maintenance Superintendent 3 Maintenance Supervisor 17 Maintenance Worker 0 Materials Management Clerk 6 Materials Mgmt Supervisor 1 Materials Mgmt Technician 1 Mechanic 8 Mobile Crane Operator 2 Office Assistant 1 Operations Manager 1 Operations Supervisor 14 Operator In Training 1 Payroll Technician 2 Planner/Scheduler 0 Plant Operator 34 Power Plant Operator I 0 Power Plant Operator II 8 Principal Accountant 3 Principal Buyer 0 Principal Contracts Admin 3 Principal Environmtl Specialist 14 Principal Info Tech Analyst 10 Principal Public Affairs Spclst 1 Principal Safety & Health Spclst 2 Principal Staff Analyst 7 Program Assistant 7 Public Affairs Specialist 2 Public Affairs Supervisor 1 Purchasing & Contracts Mgr 1 Purchasing Supervisor 1 Records Mgmt Technician 1 Regulatory Specialist 3 Reliability Maint Technician 5 Safety & Health Manager 1 Safety & Health Specialist 2 Safety Inspector 2 Scientist 2 Secretary to General Manager 1 Security/Emerg Plng Specialist 1 Senior Accountant 1 Senior Buyer 2 Senior Construction Inspector 7 Senior Contracts Administrator 3 Senior Cost Estimator 1 Senior Engineer 29 Senior Environmental Spclst 21 Senior Human Resources Anlyst 4 Senior Info Tech Analyst 15 Senior Mechanic 36 Senior Planner/ Scheduler 1 Senior Plant Operator 27 Senior Public Affairs Specialist 1 Senior Regulatory Specialist 3 Senior Safety & Health Spclst 2 Senior Scientist 2 Senior Staff Analyst 4 Source Control Inspector I 4 Source Control Inspector II 5 Staff Analyst 3 Student Intern** 16 Vocational Intern** 4 Welder/Fabricator 2 EXHIBIT A - CONFORMED Page 4 of 10 CS-2026-734BD 3.0 SERVICES TO BE PROVIDED 3.1 The Scope of Work is organized into three (3) phases: Phase I - Project Initiation and Planning; Phase II – Classification Review and Recommendations; and Phase III – Compensation Analysis and Recommendations. Proposers shall describe their approach, methodology, deliverables, and estimated timeline for each phase. 3.2 During Phases I and II, the Consultant shall perform comprehensive classification studies to review, validate, and update OC San’s classifications in accordance with the requirements described in this document. The services provided shall include, but not be limited to, the following: 3.2.1 Consultant shall conduct orientation meetings with all OC San employees, including representatives from all recognized employee organizations, to explain the scope of the classification studies, methodology, and expected results, and to answer any questions. 3.2.2 Consultant orientation meetings will describe, explain the value from an employee perspective, and provide instruction to staff on how to complete Position Description Questionnaire (PDQ) documents, which will be provided to, completed by, and obtained from all employees. 3.2.3 Consultant shall review all completed PDQs to ensure content is sufficient for successful study completion and follow up directly with staff as needed to obtain necessary information and then document how that information was obtained for future reference. 3.2.4 Consultant shall interview employees to further analyze and gather additional information about classification duties, which may include: 3.2.4.1 All incumbents in single position classifications. 3.2.4.2 A sampling of incumbents in multiple position classifications. 3.2.4.3 Incumbents who request an interview, as approved by HR. 3.2.5 Consultant also shall evaluate requests, information, observations, and management suggestions gathered by Human Resources since the previous study pertaining to the classification and compensation systems. This includes such items as suggested revisions to classifications, employment standards including educational requirements and required regulatory certifications, desired updates to job series, career progression, minor revisions, and salary structures to address alignment and compaction issues, etc. The Consultant shall coordinate with HR for additional information on the identified items. 3.2.6 As part of the studies, Consultant shall assess the appropriateness of the following: 3.2.6.1 Work being completed for each position and the relationship of positions to each other within a job family, division, department, and throughout OC San. 3.2.6.2 Current classification structures, reporting relationships, differentiating duties/characteristics, and structures of duties and responsibilities. EXHIBIT A - CONFORMED Page 5 of 10 CS-2026-734BD 3.2.7 Upon gathering all PDQs and completing employee interviews, Consultant shall update existing classification specifications’ duties, responsibilities, and minimum qualifications and create revised classification specifications, providing rationale for the changes. This shall include, but not be limited to, the following considerations. 3.2.7.1 Update job families, classification series, benchmark classifications, number of classifications and classification levels, as necessary, providing rationale for the changes. 3.2.7.2 Follow established titling system for all class levels to ensure appropriate and consistent titling and provide rationale for any recommended changes. 3.2.7.3 Update physical demands and essential functions for each classification specification in accordance with the Americans with Disabilities Act. 3.2.7.4 Update essential functions for each classification specification relative to the Fair Labor Standards Act exemptions (29 C.F.R. Part 541). 3.2.7.5 Gather and maintain resource information for future reference consisting of all working documents such as PDQs, classification specifications, and related material. 3.3 During Phase III, the Consultant shall conduct comprehensive compensation surveys for all classifications in accordance with the requirements described in this Scope of Work. The services provided shall include, but not be limited to, the following: 3.3.1 Review and provide any recommendations, including rationale, to align OC San’s compensation structure for all positions in consideration of OC San’s current pay practices and policies, internal pay relationships, salary compaction, and the external labor market. Any recommended compensation updates must comply with the Equal Pay Act. 3.3.2 Prepare and submit to HR a compensation survey final report that summarizes and analyzes salary and total compensation labor market data for all benchmark classifications, to include the following: • Agencies surveyed • Comparable class title • Salary range maximum • Number of job matches • 50th percentile (market median) • 75th percentile (OC San’s historic target) • Market value relative to both 50th percentile (market median) and 75th percentile for benchmark positions • Percentile placement for each benchmark position for both salary and total compensation relative to market position • OC San salary range’s percent above/below the market median value • Explanation and outline of methodology used • Summary and assessment of OC San’s data relative to the market data points • Review of current pay structure relative to market data points • Identification of key issues that may need to be addressed • Recommendations that include rationale for each key issue identified and a proposal for implementation EXHIBIT A - CONFORMED Page 6 of 10 CS-2026-734BD 3.3.3 Make recommendations related to any issues identified, including a cost analysis and fiscal impacts of proposed solutions. 3.4 For the duration of the project, the Consultant shall work under the direction of HR and shall provide HR with ongoing and regular reports on the status and any issues encountered during the project. 3.5 During Phase I, the Consultant shall become familiar with and work within OC San’s policies and procedures throughout the project, particularly those relating to compensation and classification; and provide any recommendations for future policy and procedure changes, as applicable throughout the project, including the rationale for those changes. 3.6 During Phases II and III, the Consultant shall provide HR a recommended strategy for implementing identified changes, if any, within the context of OC San policies and procedures and a represented public sector work environment. 3.7 Consultant shall prepare draft and final Classification and Compensation reports, including methodology, analysis, and recommendations. 3.8 The following is a breakdown of examples of major tasks to be completed as part of this project and is not intended to represent a complete task plan. Consultant and HR may propose additional tasks as deemed necessary. Any additional research, calculations, market data, and/or reporting related to the study may be included within the Consultant’s contract with OC San. 3.8.1 PHASE I – PROJECT INITIATION AND PLANNING 3.8.1.1 Task 1 – Review and Finalize Work Plan The Consultant shall meet with HR to identify the tasks to be accomplished, specific end products, and a project timetable to satisfactorily complete the overall assignment. HR will provide background information on classification, salary, and the organization to assist the Consultant in gaining a general understanding of OC San operations. Deliverable: Finalized Project Work Plan 3.8.1.2 Task 2 – Understanding of Other Study Needs The Consultant shall meet with HR staff to understand and identify specific issues that require further classification study. Review the proposed PDQ and instructions with HR staff and customize as needed to meet the studies’ objectives prior to distribution in employee meetings. Deliverables: Meetings with HR for Information on Specific Issues for Study and Employee Meeting Preparations 3.8.1.3 Task 3 – Conduct Orientation Meetings The Consultant shall prepare orientation materials/slides and finalize with HR input and conduct meetings. The Consultant shall first meet with recognized employee organizations to provide an overview of the study and initiate the process. The Consultant then shall meet with all EXHIBIT A - CONFORMED Page 7 of 10 CS-2026-734BD employees to explain the purpose of the studies and the process involved. Key discussion items in these meetings include employees’ involvement in the studies, the importance of their PDQ form and its accuracy, their participation in the job analysis interviews, and submission instructions. A detailed PDQ form shall also be distributed and explained by the Consultant during these sessions. Deliverable: Conduct Orientation Meetings for Recognized Employee Organizations and Employees 3.8.2 PHASE II – CLASSIFICATION REVIEW AND RECOMMENDATIONS 3.8.2.1 Task 1 – Review PDQs and Conduct Employee Interviews and Follow-Up Meetings Consultant shall conduct a detailed analysis of all PDQs previously collected and reviewed by HR. PDQs are mandatory for all employees. Consultant shall schedule and conduct follow-up interviews directly with incumbents where issues or significant changes are identified in the PDQ analysis. Consultant must document any follow-ups. The interviews may be conducted virtually or by phone. Deliverables: PDQ Analysis, Employee Interviews, Follow-Up Meetings with Management 3.8.2.2 Task 2 – Prepare Draft Classification Recommendations Consultant shall analyze each position relative to information provided in questionnaires and other documentation. The Consultant shall update/revise classification specifications, which may include new classification specifications (if needed), and provide the drafted documents in editable Word format to HR. Draft recommendations shall be reviewed with HR staff and modifications made, as appropriate, prior to the employee review process. Deliverables: Position Allocation Recommendations, Draft Classification Specifications, Classification Specification Revisions Based on HR Input 3.8.2.3 Task 3 – Employee and Stakeholder Review Process Consultant shall work with OC San staff to provide the opportunity for stakeholders, including employees, management and recognized employee organizations, to review and provide comments about classification specification updates. Feedback shall be in the format of discussion meetings with division management and/or written comments. Consultant shall discuss any proposed classification specification changes with HR for decision, to ensure management and employee group feedback is considered. HR will make final decisions regarding the classification specification content. Deliverables: Discussion Meetings with Division Management and HR 3.8.2.4 Task 4 – Prepare and Submit Final Recommendations Following the review process, the classification specifications will be finalized by HR. Consultant shall develop and provide a standardized EXHIBIT A - CONFORMED Page 8 of 10 CS-2026-734BD classification manual for HR use, to include documentation regarding the studies’ goals and objectives, approach and process, all resulting recommendations, and differences between classification levels. Deliverable: Classification Manual for HR Use 3.8.3 PHASE III – COMPENSATION ANALYSIS AND RECOMMENDATIONS 3.8.3.1 Task 1 – Confirm Survey Methodology Prior to initiating the compensation survey, the Consultant shall confirm OC San’s survey benchmark classifications, survey scope and elements (such as supplemental pay or benefit data desired), and policy directives regarding labor market position. The Consultant shall consider related information provided by HR staff. The Consultant shall utilize OC San’s established list of 17 comparator agencies as part of this study. Deliverable: Finalize Benchmark Classifications, Survey Scope and Elements 3.8.3.2 Task 2 – Collect Survey Data Consultant shall determine with HR the timeframe to initiate market data collection to ensure timing that aligns with business needs. Discuss and consult with HR regarding the compensation survey methodology and specific survey items to include and report. Confirm with HR the list of benchmark positions based on OC San needs and discussion. Perform data collection and analysis utilizing OC San’s established list of 17 comparator agencies. Provide drafted data sheets in Excel format for HR initial review, followed by final Excel data sheets. Deliverables: Market Data Collection (Salary and Total Compensation), Draft and Final Market Data Spreadsheets 3.8.3.3 Task 3 – Conduct Internal Relationship/Alignment Analysis Using information gathered in the classification phase, the Consultant shall conduct a comprehensive review of internal salary relationships and salary compaction both within and across related job families. Provide related recommendations for OC San review and feedback, including related analysis documentation. This analysis shall be integrated with the results of the compensation surveys and include an analysis of benchmark classifications and discussion of any resulting recommendations and rationale. Deliverables: Internal Salary Structure Review, Compensation System Analysis/Recommendations and Discussion Meeting 3.8.3.4 Task 4 – Prepare and Review Draft Classification Report and Draft Compensation Report The draft classification report shall document the classification study process and provide recommendations for the classification plan and classification specifications. The draft compensation report shall document the survey process, all survey analyses, compensation data collected, and related observations/recommendations. The EXHIBIT A - CONFORMED Page 9 of 10 CS-2026-734BD Consultant shall provide HR with draft classification and compensation reports outlining their recommendations for HR staff review and approval. Deliverables: Draft Classification Report, Draft Compensation Report 3.8.3.5 Task 5 – Prepare Final Classification Report and Final Compensation Report The final reports shall incorporate any appropriate revisions identified and submitted during the review of the draft reports. Consultant also shall prepare related presentation materials for the final presentations as detailed below. Deliverables: Revisions to Classification Report and Compensation Report, Draft Presentation Materials 3.8.3.6 Task 6 – Present Final Reports The Consultant shall make presentations of the two finalized reports of the studies’ results and recommendations to OC San’s Board of Directors, Steering Committee, recognized employee organizations, and any other Committee or group as needed. Deliverable: Presentation of Final Classification and Compensation Reports to Various Groups 3.8.3.7 Task 7 – Market Position – Current Position and Future Projections The Consultant shall provide current market position (percentile) overall for the organization and by employee group for both salary and total compensation (salary plus benefits). Additionally, the Consultant shall provide future percentile projections to estimate where specific compensation increases would place OC San in market position over a specified period, as well as subsequent updates to projections based on a limited number of specific compensation increase scenarios to be provided by OC San. Deliverable: Current Market Position Findings (Salary and Total Compensation), Future Market Position Projections (Salary and Total Comp) for Scenarios 4.0 PROJECT MANAGEMENT Meetings will primarily be conducted virtually for efficiency, including a final presentation to HR. On-site meetings include the final presentations of reports to Bargaining Unit Representatives and Board of Directors. Virtual meetings shall be recorded and made available on-demand. 4.1 Meetings 4.1.1 Kick-Off Meeting Prior to commencement of work by the Consultant, a meeting with HR staff shall be held to establish appropriate contacts and review the Consultant’s plan to complete the work. EXHIBIT A - CONFORMED Page 10 of 10 CS-2026-734BD 4.1.2 Weekly Meetings Consultant shall meet weekly with HR staff to review work in progress and receive comments and feedback. Meeting dates will be established and modified upon agreement between Consultant and HR. Additionally, the Consultant shall prepare weekly progress meeting reports and review with HR staff and/or HR management. 4.1.3 Final Meeting The Consultant shall conduct a final meeting with HR staff to present the draft and final reports in accordance with the Work Plan. 4.1.4 Committee and Board Meetings Consultant shall attend OC San’s Committee and Board meetings as requested. 4.2 Progress Reports Status reports will be prepared by the Consultant and used as the basis of the Weekly Meetings between HR and Consultant. 5.0 SCHEDULE The project, to include phases I, II, and III, shall be completed by April 30, 2028, with project milestones to be mutually agreed upon by OC San and the Consultant. BOARD OF DIRECTORS Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5147 Agenda Date:10/28/2026 Agenda Item No:CS-1 FROM:Robert Thompson, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(2) RECOMMENDATION: Convene in Closed Session: Number of Potential Cases: 4 Significant exposure to litigation. BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board,the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a)purchase and sale of real property;(b)matters of pending or potential litigation;(c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act,may be reviewed by the Board during a permitted closed session and are not available for public inspection.At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS ·Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Memorandum from General Counsel Orange County Sanitation District Printed on 10/21/2026Page 1 of 1 powered by Legistar™ 55880.00001\45536835.1 Scott C. Smith (949) 263- Phone: (949) 263-2600 | Fax: (949) 260-0972 bbklaw.com Memorandum Honorable Chair and Members of the Orange County Sanitation District Board of Directors From: Date: Re: The Board will hold a closed session on October 28, 2026, for the purpose of conferring with its legal counsel regarding anticipated litigation to which the Orange County Sanitation District may be a party. The closed session will be held pursuant to the authority of California Government Code section 54956.9(d)(2). Respectfully submitted, SCOTT C. SMITH BOARD OF DIRECTORS Agenda Report Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 File #:2026-5154 Agenda Date:10/28/2026 Agenda Item No:CS-2 FROM:Robert Thompson, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: Number of Cases: 1 PCL Construction, Inc. v. Orange County Sanitation District, Orange County Superior Court Case No.: 30-2025-0142899-CU-BC-WJC. BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS ·Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·Memorandum from General Counsel Orange County Sanitation District Printed on 10/21/2026Page 1 of 1 Scott C. Smith (949) 263- Phone: (949) 263-2600 | Fax: (949) 260-0972 bbklaw.com Memorandum Honorable Chair and Members of the Orange County Sanitation District Board of Directors From: Date: Re: The Board will hold a closed session on October 28, 2026, for the purpose of conferring with its legal counsel regarding existing litigation to which the Orange County Sanitation District is a party. The title of the matter is PCL Construction, Inc. v. Orange County Sanitation District, Orange County Superior Court Case No. 30-2025-0142899-CU-BC-WJC. The closed session will be held pursuant to the authority of California Government Code section 54956.9(d)(1). Respectfully submitted, SCOTT C. SMITH 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.