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Agenda Packets - Board - 2005-07-11- Costa. Mesa Sanjt r strict .. an Independent. Special District Greg Woodside Vice President Arlene Schafer Director Jim Ferryman President Art berry Secretary Dan Worthington Director Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify, themselves to the Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non - agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non - agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. In compliance with ADA, contact Joan Revak, (949)645 -8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). Regular feeling - Monday, July 11, 2005 • RECOMMENDED ACTION I. CALL TO ORDER — 6:00 p.m. — 628 W. 19th Street, Costa Mesa II. PLEDGE OF ALLEGIANCE — Director Perry III. INVOCATION — Director Woodside IV. ROLL CALL V. , Costa Mesa Disposal CPI Adjustment Approve Increase VI. OR Transfer CPI Adjustment Approve Increase VII. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board request specific items to be removed from the Consent Calendar for discussion, in which event the item will be removed from the Consent Calendar and considered in its normal sequence on the agenda. Reports Minute Approval 1. Recycling Committee — June 3, 2005 2. Investment Oversight Committee Meeting — June 9, 2005 3. Regular Meeting — June 9, 2005 Protecting our community's health dy providing solid waste and sewer collection services. crosdcagov Costa Mesa Sanitar,,g District AGENDA July 11, 2005 Page 2 RECOMMENDED ACTION Manager's Reports 4. Refunds Approve 5. Occupancy Report and payment to Costa Mesa Disposal - June 2005 Approve 6. Monthly Spill Report to Regional Water Quality Control Board (RWQCB) Receive and File Engineer's Reports 7. Project Status Report Receive and File Treasurer's Reports 8. Financial Reports as of May 31, 2005 Accept Report 9. Treasurer's Reports as of June 30, 2005 Accept Report 10. Warrant Register in the amount of $522,322.17 Ratify Payments 11. Directors' Compensation and Reimbursement of Expenses for the Approve Compensation Month of June 2005 & Ratify Expenses • -------------------------------------- - - - - -- -END OF CONSENT CALENDAR VIII. WRITTEN COMMUNICATIONS IX. PUBLIC COMMENTS X. MANAGER'S REPORTS A. Standardized Trash Container Program Reports Consider B. CMSD Strategic Plan 1. Year 2005 Strategic Planning Action Items Receive & File lid n 2. New District Headquarters - �ai � E sum omw*s �1 a. Building and Grounds Ad Hoc Committee - %- 19-(S� Accept Report & v Set Meeting Date b. Visit from Home Gardens Sanitary District Accept Report 3. Response from CR &R on Trash Collection Rates Discussion 0 Protecting our community's health by providing solid waste and sewer collection sen&es. crosdcagov Costa Most Snitar Dist-rict AGENDA July 11, 2005 Page 3 RECOMMENDED ACTION C. Recycling Reports 1. Waste Diversion Report — June 2005 Receive and File D. Contract Payment to CR Transfer for recycling services and disposal 1. Payment for May 2005 Services Ratify 2. Payment for June 2005 Services Ratify Subject to Verification of Diversion Report by Staff E. Joint Meeting with Midway City Sanitary District (MCSD) at Consider CMSD Headquarters F. Recycling Committee — Monday, July 11, 2005 — 12:00 p.m., CMSD Board Room, 628 W. 19th Street, Costa Mesa (Directors Woodside and Ferryman) 1. Recycling Committee Goals for 2005/2006 Update on Activities a. Tour of CR Transfer and OC Landfill 7- 13-aL5 Accept Report b. Non - profit Group Recycling Projects �,� �-()�� a Accept Report 2. Large Item Collection 2005 Accept Report 3. Cooperative District/City of Costa Mesa HHW Advertisement Accept Report XI. ENGINEER'S REPORTS A. Waste Discharge Requirements (WDR) 1. General Update Verbal Report 2. Grease Control Program Development, Project No. 174 a. Program Implementation by EEC Update b. Use of OCHCA Inspectors Update c. Consideration of Charges to Food Service Establishments Update B. Development Agreement at 1901 Newport Blvd., Excess Sewer Flows Execute Agreement C. Project #175 - OCSD Cooperative Projects Grant — Televising Approve & Execute of CMSD Sewer Lines Agreement n Protecting our community's health by providing solid waste and sewer collection services. crosdca.Aov Costa Mesa Sanita-rr District AGENDA July 11, 2005 .gage 4 RECOMMENDED ACTION D. 2004 -2005 and 2005 -2006 Capital Improvement Program Approve Appropriation Subject to Board Approval of Independent Engineer's Review E. Compensation Adjustment for Manager /District Engineer Approve XII. TREASURER'S REPORTS A. Resolution No. 2005 -710 — 2005 -2006 Statement of Investment Policy Adopt Resolution B. CMSD Audited Financial Report for Fiscal Year Ended 2003 -04 Accept Report C. Property Tax Shift Update XIII. ATTORNEY'S REPORTS A. City /District Operating Agreement Update B. Costa Mesa Disposal and CR Transfer Consolidated Agreement Accept Report C. Prevailing Wage Ruling Accept Report OV. LOCAL MEETINGS A. Orange County Sanitation District (OCSD) 1. Regular Meeting — June 22, 2005 (President Ferryman) Accept Report B. Santa Ana River Flood Protection Agency 1. Full Agency Meeting — June 23, 2005 (Director Perry) Accept Report 2. Dues for Fiscal Year 2005 -2006 in the amount of $1,400 Approve Payment C. Independent Special Districts of Orange County (ISDOC) Accept Report 1. Quarterly Meeting — Thursday, June 30, 2005 Accept Report 2. Independent Special Districts LAFCO Cost Allocation - Adopt Resolution CMSD Resolution No. 2005 -711, Approving an Alternative Formula for Distributing LAFCO Fees Among the Independent Special Districts in Orange County D. California Association of Sanitation Agencies (CASA) Consider Attendance Annual Conference — August 17 -20, 2005 Mission Bay Hilton, San Diego, California E. Local Agency Formation Commission ( LAFCO) Accept Report F. California Special Districts Association (CSDA) Accept Report Protecting our community's health by providing solid waste and sewer collection services. ansdca -Aov Costa Mesta Sanitor,� District AGENDA Jtcly 11, 2005 Page 5 RECOMMENDED ACTION G. Meetings of: Costa Mesa City Council Report on Matters OCCOG Pertaining to CMSD WACO Chamber of Commerce XV. OLD BUSINESS XVI. NEW BUSINESS XVII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVIII. ADJOURNMENT 0 C7 Protecting our community's health by providing solid waste and sewer collection services. ansdca.Aov • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING JUNE 3, 2005 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Greg Woodside, Arlene Schafer Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Denise Gilbert Director Woodside called the meeting to order at 12:00 p.m. RECYCLING COMMITTEE GOALS FOR 2005/2006 HIGH SCHOOL TOUR OF CR TRANSFER AND OC LANDFILL TUESDAY, MAY 24, 2005 On May 24, 2005, Estancia High School students participated in a tour of the materials recovery facility (MRF) at CR Transfer in Stanton and the Frank R. Bowerman landfill in Irvine. Other tours for interested Costa Mesa residents are being planned and future dates are being coordinated with CRT. Staff is investigating prices for bus rental for the tours. Staff is coordinating a date with the Westside Boys and Girls Club, as well as a Girl Scout Troop from Adams School, for an educational presentation on . recycling plastics and a collection project for the Club's/Troop's participation with a monetary award of $100 at the completion of the project. CLASSROOM RECYCLING PROJECTS Mr. Fauth reported there are no classroom recycling projects scheduled at this time. LARGE ITEM COLLECTION 2005 Ms. Revak reported the Large Item Collection program will commence on June 1, 3, • 2005 and run until August 26, 2005. Protecting our community's Health by providing solid waste and sewer collection services. crnsdcagov PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 12:43 p.m. Secretary Costa Mesa Sanitary District Minutes of Recycling Committee Meeting June 3, 2005 • Page 2 President L� 0 Protecting our community.s health by providing solid waste and server codection services. crosdcaAov • COSTA MESA SANITARY DISTRICT MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING June 9, 2005 CALL TO ORDER The meeting was called to order at 5:30 p.m. by the District Manager, Mr. Rob Hamers. ROLL CALL Committee Members Present: President Jim Ferryman (rotating committee member) Director Arlene Schafer(rotating committee member) Mr. Rob Hamers, Manager /District Engineer Staff Members Present: Ms. Joan Revak, Board Secretary/Program Manager /Clerk of the District Wendy Davis, Treasurer Ms. Sherry Kallab, Accountant NEW BUSINESS Current Interest Rates Ms. Davis discussed the current interest rate environment as it relates to the District's budgeted revenue in the 04 -05 and 05 -06 fiscal years. Also discussed was the possible need for the liquidation of an investment prior to maturity to meet the District's cash flow needs during the next few months when no property tax revenues are distributed. The Committee reviewed the District's "Schedule of Investments by Type" and determined that most of the investments are currently underwater. Therefore, if an investment were sold, the District would sustain a loss. The Treasurer suggested that the 20% liquidity amount be increased in the Statement of Investment Policy to prevent having to sell a security to meet cash flow needs. Discussion followed. PUBLIC COMMENTS There were no items discussed under public comments ADJOURNMENT The meeting adjourned at 5:58 p.m. Approved by: 0 Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors L� • 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 99 2005 The Board of Directors of the Costa Mesa CALL TO ORDER Sanitary District met in regular session on June 9, 2005, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: President Ferryman called the meeting to order at 6:00 p.m. Director Worthington led the Pledge of Allegiance Director Woodside gave the invocation. James Ferryman, Greg Woodside, Art Perry, Arlene Schafer, Dan Worthington None STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Wendy Davis, Treasurer; Denise Gilbert, Permit Processing Specialist; Debbie Bjornson, Permit Processing Specialist; Ron Shef, District Ordinance Enforcement Officer OTHERS PRESENT: None . ............................... CONSENT CALENDAR . ............................... Director Schafer motioned to approve the Consent Calendar as presented. Director Perry seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 2 JUN E 9, 005 PAGE 2 • REPORTS MINUTE APPROVAL Minutes of Recycling The Minutes of the Recycling Committee Meeting Committee Meeting, of May 6, 2005, were approved as distributed. May 6, 2005 Minutes of Regular The Minutes of the Regular Meeting of May 12, Meeting, 2005, were approved as distributed. May 12, 2005 Minutes of Special The Minutes of the Special Meeting of May 24, Meeting, 2005, were approved as distributed. May 24, 2005 Minutes of Special The Minutes of the Special Meeting of June 1, Meeting, 2005, were approved as distributed. June 1, 2005 MANAGER'S REPORTS Refunds There were no refunds requested for the month of May 2005. Occupancy Report and The Trash Occupancy Count documented an Payment of $188,911.54 increase of 4 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of June 1, 2005. June 2005 Therefore, the total for June is 21,253. Board directed Staff to prepare a warrant for $188,911.54 to Costa Mesa Disposal on July 1, 2005, for payment for June trash collection based on the June count of 21,253. Monthly Spill Report to The Monthly Spill Report to the Regional Water Regional Water Quality Quality Control Board (RWQCB) for May 2005 was Control Board (RWQCB) accepted as submitted. ENGINEER'S REPORTS Project Status Report The Project Status Report dated June 2005 was accepted as submitted. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING .:: JUNE 9, 2005 PAGE 3 TREASURER'S REPORTS Financial Report as of The Financial Report as of April 30, 2005 was April 30, 2005 accepted as submitted. Treasurer's Reports as of The Treasurer's Reports as of May 31, 2005 was May 31, 2005 received and filed. Warrant 2005 -12 for June Warrant Resolution #CMSD 2005 -12 was 2005 in the amount of approved, authorizing the President and Secretary $532,791.05 to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $532,791.05. Directors Expenses for the Director Compensation and Expense Month of May 2005 Reimbursement for the Month of April 2005 were approved and ratified as follows: Director Ferryman: $340.00 Director Perry: $1020.00 Director Schafer: $1,226.65 Director Woodside: $510.00 Director Worthington: $1,050.67 ............ ...o —000 —o END OF CONSENT CALENDAR ..... 0000 o- oo- oo —.... WRITTEN COMMUNICATIONS There were no written communications. PUBLIC COMMENTS There was no public in attendance, no public comments made. MANAGER'S REPORTS STANDARDIZED TRASH CONTAINER PROGRAM REPORTS Mr. Hamers reported Staff Is addressing the list of concerns provided by Director Worthington. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING - ,JUNE 9, 200$ PAGE 4 • There has been communication with Costa Mesa Disposal regarding truck identification numbers. • The nonstandard colored containers are being removed and replaced. • Graffiti abatement was requested of the Costa Mesa Disposal supervisor. Director Worthington provided a report on the condition of the tags currently used on containers in multi - family areas. The current tags are breaking off the containers and delaminating. Director Worthington recommended providing pouches of at least 10 millimeter thickness to alleviate the problem. Mr. Shef provided a monthly report for the time period of May 2005. Due to the Memorial Day Holiday, collection was one day late for the entire week. Courtesy notices were suspended during that week. CIVISD STRATEGIC PLAN YEAR 2005 STRATEGIC PLANNING ACTION ITEMS 0 Mr. Harriers reported an updated Strategic Plan Action Items list was included in the Board packet. Ms. Bjornson reported she has been working with the Springbrook software and feels confident the District is on target to report the information for the tax bills. A sample of the notification postcard was distributed to the Board and is ready for distribution to residents. Director Worthington suggested bolding the last sentence of the postcard "The sewer program must conform to the Regional Water Quality Control Board Order that includes a comprehensive grease control program. The additional charges for the grease control program are identified below." to make it stand out and include asterisks by the $2.31 figure to identify the charges. Director Perry motioned to receive and file the Strategic Planning Action items. Director Schafer seconded. Motion carried 5 -0. • COSTA MESA SANITARY DISTRICT i MINUTES OF BOARD OF DIRECTORS REGULAR MEETING _.. JUNE 9, 2005 PAGE 5 NEW DISTRICT HEADQUARTERS BUILDING AND GROUNDS AD HOC COMMITTEE MEETINGS OF MAY 20, 2005 Mr. Harriers reported a meeting was held on May 20, 2005. The Building and Grounds Ad Hoc Committee is fine tuning the specifications for the flagpole and front and rear doors. Mr. Hamers reported holding a meeting with Donna Theriault, Bill Morris, and Ernesto Munoz to discuss vacation of right -of -way on 19th Street and installation of a flagpole. RETAIN LANDSCAPE ARCHITECT Mr. Harriers reported the Building and Grounds Ad Hoc Committee recommended hiring a landscape architect. A Professional Services Agreement for Landscape Architectural Services with Mr. Peter Weisbrod, ASLA, Landscape Architect was presented to the Board. Director Perry motioned to approve the Professional Services Agreement with Mr. Peter Weisbrod, ASLA, not to exceed $6,000, subject to Mr. Burn's review of the agreement_. Director Woodside seconded. Motion carried 5 -0. RECYCLING REPORTS WASTE DIVERSION REPORT - MAY 2005 Ms. Revak presented the Waste Diversion Reports for May 2005 showing a 50.91 % diversion rate. Director Schafer motioned to receive and file the Waste Diversion Report. Director Perry seconded. Motion carried 5 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR APRIL 2005 SERVICES Director Perry motioned to ratify contract payment in the amount of $179,752.16 to CR Transfer for recycling services and disposal for the month of April 2005. Director Worthington seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT i MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 2 JUNE 9, 005 PAGE 6 PAYMENT FOR MAY 2005 SERVICES Ms. Revak reported the contract payment for May is still being reconciled. COSTA MESA PUBLIC SAFETY EMERGENCY SERVICES EXPO SUNDAY, MAY 15, 2005,11:00 A.M. — 3:00 P.M. Ms. Gilbert reported the Expo was held on Sunday, May 15, 2005, 11:00 a.m. — 3:00 p.m. The District had a booth and provided promotionals and an active worm bin. Ms. Gilbert reported they were stationed outside the fence due to the large trucks. Director Schafer suggested obtaining a banner sign to be used at events with "Costa Mesa Sanitary District" on it. JOINT MEETING WITH MIDWAY CITY SANITARY DISTRICT (MCSD) AT CMSD HEADQUARTERS Mr. Hamers suggested providing two to three dates to present to Midway City as possible joint meeting dates. 0 The Board determined the following dates would be available: September 14, 2005 at 6:00 p.m. October 6, 2005 at 6:00 p.m. October 7, 2005 at Noon Ms. Revak will contact Midway City Sanitary District and propose the suggested meeting dates. RECYCLING COMMITTEE - FRIDAY, JUNE 3, 2005 - 12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA, DIRECTORS WOODSIDE AND SCHAFER RECYCLING COMMITTEE GOALS FOR 2005/2006 HIGH SCHOOL TOUR OF CR TRANSFER AND OC LANDFILL TUESDAY, MAY 24, 2005 Director Woodside reported tour for Estancia High School students was held on May 24, 2005. Director Perry suggested providing masks for participants of future events to mitigate the odors of the landfill. Director Woodside reported receiving a request from a church to attend a landfill tour. COSTA MESA SANITARY DISTRICT a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9 J 2005 , PAGE 7 Ms. Davis suggested setting a regular budget item for tours. 9g g 9 9 Ms. Gilbert is assembling information on bus rentals for future tours. CLASSROOM RECYCLING PROJECTS Director Woodside reported a Boy Scout troop and the Boys and Girls Club expressed interest in participating in a recycling project. The participants will receive a brief education on the types of recyclables before beginning their project. LARGE ITEM COLLECTION 2005 Ms. Revak reported the Large Item Collection program will commence on June 12, 2005 and run until August 26, 2005. ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS - (WDR) GENERAL UPDATE Mr. Burns provided an update memorandum of a federal lawsuit filed by Coast Keeper against the City of Garden Grove. Mr. Burns has been in contact with Attorneys Tom Woodruff and John Shaw who will make a presentation at the City Attorney's luncheon. Mr. Burns will speak with the attorney from CASA to exchange information. GREASE CONTROL PROGRAM DEVELOPMENT PROJECT NO. 174 PROGRAM IMPLEMENTATION EEC Mr. Hamers provided an example of the notebook distributed to the approximately 400 food service establishments. Mr. Hamers reported EEC is doing excellent work for the District. USE OF OCHCA INSPECTORS Mr. Hamers reported the Orange County Health Care Agency is working on the agreement with OCSD for the use of OCHCA Inspectors. Mr. Hamers reported there will then be an agreement between OCSD and the District. Mr. Hamers provided a copy of that agreement to Mr. Burns for his review. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9 J 2005 , PAGE 8 CONSIDERATION OF CHARGES TO FOOD SERVICE ESTABLISHMENTS Mr. Hamers reported the item has been approved in concept and charges will be made to food service establishments contributing grease to sewer lines. Mr. Hamers reported final charge amounts will be determined at the August meeting. PROPOSED DEVELOPMENT AT 1901 NEWPORT BOULEVARD, EXCESS SEWER FLOWS Mr. Hamers had no update to report to the Board. OCSD COOPERATIVE PROJECTS GRANT - TELEVISING OF CIVISD SEWER LINES Mr. Hamers reported the District is piggy- backing on the Fullerton RFP and award and he has assembled the documents to begin the televising. Mr. Hamers inquired as to the Board's desire regarding a comprehensive presentation for the televising of the sewer lines versus a Staff report and agreement. The Board determined a Staff report and agreement would satisfy their needs. 0 REPORT ON EMERGENCY AND NON -BID SEWER WORK Mr. Hamers provided a brief report to the Board. Mr. Hamers recommended receiving and filing the report. Director Schafer motioned to receive and file the report. Director Woodside seconded. Motion carried 5 -0. SEWER IMPROVEMENTS FOR TRACT 16416, SUSAN STREET STANDARD PACIFIC DEVELOPMENT Mr. Hamers reported the sewer lines in Tract No. 16416 Susan Street are being dedicated to the District. Mr. Hamers recommended acceptance of the sewer improvements, filing a Notice of Completion with the Orange County Recorder, and exoneration of bonds. Director Woodside motioned to accept the sewer improvements as constructed; filing a Notice of Completion with the Orange County Recorder; exonerate the Labor and Material Bond 35 days after the date of recording of the Notice of Completion; and exonerate the Faithful Performance Bond one year after the date of recording of the Notice of Completion. Director Perry seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT a" MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9, 2005 0 PAGE 9 TREASURER'S REPORTS 2005 -2006 BUDGET CALENDAR Ms. Davis reported the following dates regarding the 2005 -2006 Budget Calendar: Budget Adoption at regular meeting June 9, 2005 Notice of Public Hearing (Postcard Mailout Deadline) June 24, 2005 Public Hearing to Adopt Sewer and Trash Charges August 11, 2005 Transmit Charges to County August 17, 2005 Ms. Davis provided a brief update of the proposed 2005 -2006 Budget. Director Perry motioned to approve an amount not to exceed $5,000 for tours during the 2005 -2006 fiscal year. Director Woodside seconded. Motion carried 5 -0. CREATION OF TRASH COLLECTION RATE STABILIZATION FUND. SPECIAL MEETING HELD MAY 24, 2005 Ms. Davis reported the meeting was held on May 24, 2005 and no action was taken. INVESTMENT OVERSIGHT COMMITTEE MEETING — JUNE 9. 2005 (DIRECTORS WOODSIDE AND PERRY) Ms. Davis reported the Investment Oversight Committee meeting was held June 9, 2005. Minutes will be presented at the July regular meeting. RESOLUTION NO. 2005 -709 — ADOPTING A BUDGET FOR THE FISCAL YEAR 2005- 2006 Director Perry motioned to approve RESOLUTION NO. 2005 -709, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING A BUDGET FOR THE FISCAL YEAR 2005 -06. Director Schafer seconded. Motion carried 5 -0. APPROPRIATION CARRYOVER — CIP APPROPRIATION FOR FY 2005 -2006 Director Schafer motioned unspent 2003 -04 Capital Improvement Projects' appropriations be carried over or re- appropriated in the 2004 -05 fiscal year. Director Worthington seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9 J 2005 , PAGE 10 ATTORNEY'S REPORTS CITY /DISTRICT OPERATING AGREEMENT Mr. Burns reported consulting with the Costa Mesa City attorney but reported no agreement was reached. Discussion was held. Board directed Mr. Hamers to meet with the City Manager seeking resolution and report back at the July regular meeting. Ms. Davis left the meeting at 7.35 p.m. COSTA MESA DISPOSAL AND CR TRANSFER CONSOLIDATED AGREEMENT Mr. Burns reported the CR Transfer Consolidated Agreement has been prepared and will be reviewed by staff before sending to CR & R. SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY ( SDRMA) RENEWAL INVOICE FOR 2005 -2006 PROGRAM YEAR Mr. Burns presented the SDRMA renewal invoice. Discussion was held regarding coverage limits. Director Schafer motioned to approve coverage with a five million dollar limit for a fee of $54,511.22. Director Worthington seconded. Motion carried 5 -0. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) REGULAR MEETING - MAY 25, 2005 (DIRECTOR FERRYMAN Director Ferryman attended the OCSD meeting and reported the following: • Rates set with 31 % increase • Discussion held regarding Coast Keepers • Ellis pump station sited • COSTA MESA SANITARY DISTRICT " MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9, 2005 PAGE 11 SANTA ANA RIVER FLOOD PROTECTION AGENCY EXECUTIVE COMMITTEE MEETING - MAY 26, 3005 (DIRECTOR PERRY Director Perry attended the meeting and reported they were allocated $61,650,000 with $50 million going to the Prado Dam project. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) Director Schafer attended the meeting on June 7, 2005 and reported they discussed the following: ■ LAFCO funding formula QUARTERLY MEETING - THURSDAY, .TUNE 30. 2005, 11:30 A.M. AT ORANGE COUNTY SANITATION DISTRICT BOARD ROOM President Schafer reported there will be a Quarterly meeting on June 30, 2005. Directors Ferryman, Schafer, Worthington, and Perry will be attending the meeting. LOCAL AGENCY FORMATION COMMISSION ( LAFCO) Director Schafer attended the June 8, 2005, LAFCO meeting and reported the following: • Strategic Plan update • Review of Rancho Santa Margarita incorporation • South County /Rancho Mission Viejo MSR update • Tonner Hills update CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) Director Schafer attended the May 16 -17, 2005, CSDA meeting and reported they discussed the following: • Opportunity to go to Capitol and meet with legislators • Legislation day • Evaluation of CEO is COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9 2005 PAGE 12 • MEETINGS OF: COSTA MESA CITY COUNCIL, OCCOG, WACO, CHAMBER OF COMMERCE WACO Director Schafer attended the WACO meeting on June 3, 2005 and reported the following: Speaker Charley Wilson, Vice Chair of Southern California Water Committee Update on energy industry preparing to meet summer demands Speaker Steve Arakawa, Group Manager, Water Resource management, Metropolitan Water District of Southern California Chamber of Commerce Director Schafer attended the Chamber of Commerce meeting of June 7, 2005 and reported they discussed current bills. Director Schafer provided materials for the Board's perusal. OLD BUSINESS There was no old business discussed. NEW BUSINESS There was no new business discussed. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Ferryman thanked everyone who attended and worked at the fish fry. Mr. Hamers thanked the Board for their work and wisdom. Director Worthington announced the Civic Center Park will be the location of the new Costa Mesa Library. Director Worthington observed how plastic trash bags were handled during trash pickup. Director Worthington observed the driver get out of the truck and place the plastic bag on top of the trash can, which was then lifted and dumped. Director Worthington suggested considering residents place any extra trash into plastic bags and place them on top of the container instead of setting them to the side of the container on the ground. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 9, 2005 ® PAGE 13 Director Worthington requested a meeting be set to discuss reducing the cost of trash collection. Mr. Hamers suggested writing a letter to the Garden Grove Sanitary District to thank them and let them know the District has developed a grease container lid program based on their idea. ADJOURNMENT At 8:03 p.m., President Ferryman adjourned the meeting. SECRETARY PRESIDENT 0 TO: Costa Mesa Sanitary District Board of Directors FROM: Ron Shef, Ordinance Enforcement Officer DATE: July 5, 2005 SUBJECT: ORDINANCE ENFORCEMENT SUMMARY REPORT This report covers the monthly period of June 2005. During this month collections were standard with no holidays to upset the schedule. Over twenty courtesy flyers and regulations were left at various addresses due to containers in view or remaining at the curb. Nine containers were over sprayed due to graffiti markings observed. During this period the large item collection program began. Collections of these items were observed and nothing unusual was seen. Residents tend to place their items on the curb days before collection, some as soon as their door hangers are received. This just makes for an unsightly curb area until collection day arrives. A resident on Pierce in the North Costa Mesa area had complained about two houses on the street where the residents, a senior care facility and as assisted living home, have consistently placed their overfilled containers out for collections which attracted vermin and crows to spew the trash everywhere. Included for collection were bags of used adult diapers and other assorted trash. Ordinance Enforcement Officer contacted the residents and told them to desist in this practice or collection would cease for them with containers being removed. So far, things got better but situation will be monitored. This situation and others very similar required the interaction of the Ordinance Enforcement Officer and district residents in order to resolve any ongoing problems. Some also require a personal letter sent to the resident from district staff indicating the action that must occur in order to provide resolution. • Ordinance Enforcement Officer July 6, 2005 Date Street Index Address Street Name Description of Violation Action 5/10/05 3870 1397 Garlingford St In View Pink /Reg's. 5/10/05 2050 1618 Baker St. In view and At Curb Pink /Reg's. 5/10/05 3100 936 Coronado In View Pink /Reg's. 5/10/05 7350 2867 Velasco Ln In View Pink /Reg's. 5/20/05 3960 803 Governor St In View Pink /Reg's. 5/20/05 5887 1788 Pennisula PI In View Pink /Reg's. 5/20/05 2355 1829 Bowsprite Ln In View Pink /Reg's. 5/20/05 5317 1833 Nantucket PI In View Pink /Reg's. 5/20/05 3960 834 Governor St In View / Call in Ok/None 5/20/05 3690 823 Governor St In View / Call in Ok/None 5/20/05 3080 2355 Cornell Dr Customer called in 3 burned Containers informed staff 6/2/05 5317 1833 Nantucket PI In view Pink Flyer 6/10/05 2050 1578 Baker St. In view Pink Flyer 6/10/05 4460 1674 Labrador Dr. At Curb Pink Flyer 6/10/05 2210 3147 Bermuda Dr. At Curb Pink Flyer 6/10/05 4810 1686 Madagascar St. In view Pink Flyer 6/10/05 4810 1708 Mada ascar St. At Curb Pink Flyer 6/10/05 7050 1801 Tahiti Dr. At Curb Pink Flyer 6/10/05 5880 2904 Pemba Dr. At Curb Pink Flyer 6/10/05 5880 2903 Pemba Dr. In view Letter to be sent 7/1/05 4060 626 Hamilton St. At Curb / Too Heavy Pink /Reg's. 0 0 6/2005 6 • Costa Mesa Sanitary District Year 2® ®5 Strategic Planning Action Items The following Strategic Planning Action Items were discussed at the District's Strategic Planning Special Meeting on January 22, 2005 and adopted by the Board at a regular meeting held February 10, 2005. 1. Sewer Maintenance and Operations Crews 1.1 Proposed Agreement with City • Consider actions by City Development Services Department • Consider MCWD's inability to track new development • Consider indemnification provisions proposed by City • Consider cost savings available with contract crews • Consider MCWD statements regarding use of their Yard • Consider Yard requirements for vehicles, materials and equipment • Consider long -term potential for supervisor and one in -house crew and one contract crew • Consider City workers who have dedicated their careers to District's sewer system Action: • Assistant Manager to monitor available property • Manager /District Engineer to discuss use of MCWD Yard with MCWD General Manager • Manager /District Engineer to continue researching options • Await reply from City on indemnification provisions Status: Manager /District Engineer discussed joint CMSD /MCWD Yard with MCWD General Manager on February 8, 2005. At March 25, 2005 City /Districts Liaison Committee, City Manager stated he anticipates approval of Agreement with City. CMSD Attorney and CCM Attorney unable to resolve indemnification language. CMSD Board of Directors requested resolution by August 2005 regular meeting. .y ASsisvAof Ma,-' ei- i�(e„I-; vred 'owe avai'lab /e Pro�O�,�7'er,c +s 44 A..�.. ,* (,dvr 2. Financial Matters U l 2.1 Financial Master Plan Rev. 8/1/05 Board desires long -term financial plan New building changes historical budgets Treasurer and Accountant continuing to input past data Springbrook software installation and training cc, ��4ee� Information from City required to complete update Budget Study Session and adoption scheduled for May /June 2005 Master Plan, Rate Stabilization Plan and Long -term Projections require data from at least one -year term in new building Action: • Treasurer to either complete update with Accountant or obtain temporary help • Treasurer to prepare list of items needed from City for action by Manager /District Engineer 0 • Assistant Manager to insure Springbrook financial modules are completed in .,� timely manner .4 capfIffed g -Oros Status: Temporary accounting help obtained. Springbrook financial modules are installed. Budget Study Session and adoption of 2005 -2006 Budget occurred in June 2005 2.2 Yearly Trash Collection and Sewer Service Charges • Requires completed programming by Springbrook • Requires successful transfer of data into new system • Requires programming to add FOG charges to regular sewer charges • Requires Permit Processing Specialist to input past data Action: -� 45' Assistant Manager and Treasurer to insure completion of work by Springbrook • Assistant Manager to prepare timeline reflecting successful completion of tasks necessary to adopt 2005 -2006 charges Status: Assistant Manager prepared timeline insuring Springbrook financial modules will be operational meeting District needs. 2.3 Solid Waste Fund • Existing reserves inadequate to pay off trash containers • Consider whether prepayment penalty applies. • Trash tonnage continues to increase, causing higher charge�C.�� cast- ., • Current policy requires resident participation charge of �per container • Container costs rolled into following year's charges • Desire to limit future year increases • Administrative costs are divided according to demand Action: 8/1/05 • Assistant Manager to prepare chart showing hauling component, recycling component, landfill fee component and administrative component for solid waste charges to residents • Consider options for decreasing costs of two largest components • Consider options for variable trash collection rates • Assistant Manager to review simplified variable rate structure approved by Board on October 4, 2004 and report on implementation • Consider other agencies' ability to: 1. Subsidize residential rates through commercial program 2. Decrease rates due to property tax revenues 3. Quote Contractor rates without considering Agency costs • Continue public outreach 2 Status: Special Meeting held May 24, 2005 to consider rate stabilization fund Treasurer prepared pie -chart showing hauling and recycling component and discussed options regarding rates. Board discussion to Gon�inue. • Qco INS �--� Manager/ District Engineer-fa obtain comments nts from CR &R regarding CMSD trash collection rates. °—� U b i ' L ot4t -r a -ek r8s �m er kir7A std. ds stwv sc� ��j^� An,`ewlrl6s+.F Ia 3Q�¢e�e6 �,� j I wej t4/sq/M'wx p 2.4 Liquid Waste Fund a+ CA Mrtfe.-y CAo-A F R(kw4,►,a„ 1 ,Fr�c c�kdoe�� Action: • Manager /District Engineer aware of high current construction costs • Sewer rates are generally low • Emergency reserve in place • Long -term sewer replacement fund in place • Manager /District Engineer requests review of long -term sewer replacement fund by Treasurer • Provide updates to Board as appropriate y • Manager /District Engineer prepared memos with local sewer rates —T ° FOCr C/Wrik S 1 k ee rra ,,a tut 1 d►1 Ns-06 ltd »e 2/S /C�pcar7 v'1ncP PC��CJ 3. Personnel 3.1 9/80 Work Schedule with Headquarters Closed Every Other Friday • Insures core hours are covered by entire Staff • Insures Staff members can concentrate on their work • Lessens facility costs • Staff members can schedule medical appointments on Fridays off • Staff works better with 9/80 schedule • Safety concerns without 9/80 schedule Action: • Implement 9/80 schedule following February 10, 2005 regular meeting • 9/80 schedule to be reviewed by Board after one year • Staff to insure schedule works well with holidays • Safety concerns to be addressed by video camera, buzzer or door with window Status: 9/80 Schedule implemented February 10, 2005 Camera installed in District headquarters lobby area 3.2 Human Resources Management • Extensive Federal and State laws • District management desires training • Local consortium offers full range of services including training, manuals, on -call assistance and legal advice • Consider salary versus hourly for Management Action: • Agendize membership in Consortium • Assistant Manager to attend training session • Delay consideration of receptionist until 9/80 and financial master plan are complete 0 !.1 /AC n • Treasurer to propose Treasurer Succession Plan similar to Manager /District Engineer Succession Plan (tcW) Status: District joined Liebert Cassidy Whitmore,Consortium on February 10, 2005. • Assistant Manager attended training sessions on March 17, 2005 and April 21, 2005. Si4f+ crc4e,ftl -LC W Pa,V'i v 'W -17 -c1 3.3 Fats, Oils and Grease (FOG) Control Program Action: • State Order results in need for expanded work force • Additional staffing currently handled using consultants • District costs approach $250,000 per year • Sewer Inspector and Ordinance Enforcement Officer may be requested for follow up inspections • District may need additional employee when Consultant participation decreases • Board approved in concept increasing sewer rates to fund program • Staff to agendize action items for Board as needed • Provide regular updates to Board • Insure computer software is modified to allow for FOG charges Status: Consultant progressing in grease control program implementation. Third ear Consultant services included in 2005 -2006 CIP c•' j�1 ��I S'��v,ce £'s�'e�hl�'shnle�ts (of 3i�) 3.4 Staff Attendance at Conferences • • Board desires Staff stay abreast of knowledge and issues • Conferences provide `idea- sharing' forum • Manager /District Engineer current workload is heavy • CASA conferences are dedicated to sewer matters • Treasurer currently belongs to financial management organizations -� • Assistant Manager is available for conferences, Action: • Staff to attend conferences on a case -by -case basis • Treasurer to include Staff Development Plan in 2005 -06 Budget 4. New District Headquarters 4.1 Building Exterior Action: 8/11/05 • Parking is limited • Assistant Manager assembling list of improvements with estimated costs including lighting, roofing, etc. • Exterior improvements would delay Open House • Assistant Manager to prepare site plan noting improvements • • Maintain parking overflow plan with Church, Insurance Company and DMV • Schedule Open House for a Thursday in March • Monitor property for sale O •, Status: Open House held on March. 31, 2005 Building & Grounds Ad Hoc Committee formed and met on April 25, 2005, May 11, 2005, May 20, 2005 amITJuly 18, 2005 � AVStisd 3,Arr6 o.,,d /vu 30, "S- ® Board authorized new front and rear door and flag pole; PO ,uoM �,�doL� s �� Aky Board approved in concept at June 9, 2005 meeting Agreement for Landscape Architect Services; 3 "" seTo4 00p4oa-16,4yf "J, Manager /District Engineer allocated $75,000 in 2005 -06 CIP for Building and �-005- Grounds improvements 4.2 Public Use of Board Room Action: • Staff prepared potential rules • Night meetings require staff overtime • Limit to non - profit, local groups • Board Room can easily be damaged • Many groups meet early in the day or at night • Reconsider Board Room use at one -year date • Security deposit would be required • MCWD no longer allows non - profit groups to use Board Room due to damage 4.3 Sewer Operations Improvements • Project #101 will eliminate seven pumping stations • Pumping Stations require intensive maintenance • Pumping Station malfunctions are a cause of sewer spills Action: • Manager /District Engineer will prioritize project Status: Manager /District Engineer reaffirmed City of Newport Beach's cooperation. Site reviews underway by CMSD Inspector and Staff. Manager /District Engineer considering consultant for preparing Environmental Constraint Study. 5. Public Outreach 5.1 Review of Recycling Programs • Assistant Manager reintroduced cost/benefit analysis of all recycling programs • Previous Board action maintained all programs in place • Total cost budgeted in 2003 -04 was $81,420 excluding $25,500 in Contractor required monetary support • Recycling Committee prepared Draft 2005 -06 Goals Action: • Continue existing Recycling Programs • Bring Draft 2005 -2006 Goals to Board Meeting for adoption • Promote County HHW Drop Off facility in Huntington Beach • Promote waterless urinals a/1/05 r, Status: 2005 -2006 Recycling Committee Goals adopted on February 10, 2005. Activities arranged each month. stat,q 3 eesovihi ir.44eihra,'Fe Ott 0% OL:i =e iv"44 9DR:h!l v» 6'ek4;dc j4/41W CC,keCI4stx • 5.2 Outreach and Education Action: • State considering acquiring Special District reserves • CMSD has opportunity to educate residents through tours of landfills, CR Transfer MRF and OCSD treatment plants • Legislation Days provide forum for meetings with Legislators • Educate residents that State acquisition of CMSD funds represents a loss of their money • Establish goal of two tours per year at a cost approximating $1,000 per tour. Tours to include one or two of the above - mentioned sites • Board to consider involvement in Legislation Day and other conferences allowing interface with Legislators • Assistant Manager to revise `Working for You' video as appropriate and continue to distribute copies Status: Recycling Committee arranged for high school tour of CR Transfer and OC landfill on Tuesday, May 24, 2005. Adult tour took place on July 13, 2005. - Recycling Presentation given to Boys & Girls Club at Rea School to 20 students. Club to participate in cans /bottles activity in September 2005. • nn Recycling Presentation for Boy Scout Troup planned for September 2005. A a it -oo o 'nvir Otcurrm 6. Strategic Planning 6.1 Elements of a Strategic Plan Action: • Reconsider mission statement if appropriate • Develop long -term vision • Develop objectives and goals tied to long -term vision • Reference numbers from goals can be included in budget • Consider the above at 2006 and future Strategic Planning meetings • 8/1/05 6 o, f.. a COST A 911ESA 119UTART c0'ppORAtti�,� DISTRICT ... an Independent Specia[ District Memorandum To: Board of Directors From: Wendy H. Davis, District Treasurer �10 Date: July 11, 2005 Subject: Review of 2005 -2006 Statement of Investment Policy RECOMMENDED ACTION • Adopt Resolution approving the Statement of Investment Policy for the 2005 -06 fiscal year and delegating the investment activities to the District Treasurer. r� LJ BACKGROUND The Investment Policy presented for Board approval is the same policy adopted for the 04 -05 fiscal year. The District Treasurer is not recommending any changes at this time. This Investment Policy has been designed to meet the specific needs of the Costa Mesa Sanitary District and complies with both the California Government Code and the guidelines recommended by the California Municipal Treasurer's Association. The single most important statutory duty of the District Treasurer is set forth in California Government Code Section 41001 which provides that the "District Treasurer shall receive and safely keep all money coming into the Treasury." In light of this responsibility, the following investment strategy guidelines have been established: Legal Investment Authority: Temporary idle monies are to be invested in accordance with state and local statutes and in compliance with California Government Code Sections 53600 et. Seq. Protecting our community's health 6y providing sold waste and sewer collection services. costamesasanitarydzstrict. org • Safety: It is the primary duty and responsibility of the District Treasurer to protect, preserve and maintain, cash and investments placed in trust with the District is Treasurer on behalf of the Costa Mesa Sanitary District. • Liquidity: An adequate percentage of the portfolio should be maintained in liquid short-term securities, which can be readily converted to cash if necessary to meet disbursement requirements. • Diversification: The District's investment portfolio will be sufficiently diversified to avoid incurring unreasonable risks resulting from saturation of assets in specific security types, maturities or individual financial institutions. • Yield: The District Treasurer may obtain the highest possible yield within the parameters of the District's authorized investments, provided the criteria for safety, liquidity and diversification have been met. CONCLUSION It is recommended that the Board of Directors adopt the attached Resolution Number 2005 -710 approving the Investment Policy for the 2005 -06 fiscal year. Attachments: • Resolution Proposed 2005 -2006 Statement of Investment Policy Glossary r� RESOLUTION NO. 2005 -710 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING THE 2005 -2006 STATEMENT OF INVESTMENT POLICY, AND AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ACCORDANCE WITH THE 2005 -2006 STATEMENT OF INVESTMENT POLICY, AND AUTHORIZING THE SAID TREASURER TO DELEGATE TO A DEPUTY THE CARRYING OUT OF ANY SUCH TASKS. THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, Government Code Section 53601 sets forth the investments that the District may lawfully make; and WHEREAS, Government Code Section 53646 sets forth that the District's Treasurer shall annually render to the Board of Directors a Statement of Investment Policy at a public meeting for the Board to consider; and WHEREAS, The Board has reviewed the Statement of Investment Policy; and • WHEREAS, Government Code Section 53607 authorizes the Board to delegate the authority to make investments and to sell or exchange securities for a one year period to the Treasurer provided that monthly reports are thereafter made of the status of said transactions; NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby resolve as follows: 1. That the Statement of Investment Policy is approved. 2. That the Treasurer is authorized to make investments consistent with said Policy and is required to report to the Investment Oversight Committee and Board on a monthly basis on the status of those transactions. The Treasurer is hereby given all of the authority provided by Government Code Section 53607, including the power to invest and reinvest and the power to sell or exchange securities, consistent with the District's policy. 1 3. That the Treasurer may delegate some part of these duties to a deputy provided that the Treasurer remains responsible for such decisions and provides oversight. The Clerk of the District shall certify to the passage and adoption of this resolution, and it shall thereupon be in full force and effect. PASSED AND ADOPTED this 11th day of July 2005. ATTEST: Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss COSTA MESA SANITARY DISTRICT ) • I, JOAN REVAK, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2005 -710 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 11th day of July 2005. 0 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District this 11th day of July 2005. Clerk of the Costa Mesa Sanitary District COSTA MESA SANITARY DISTRICT • STATEMENT OF INVESTMENT POLICY I. PURPOSE This statement is intended to formalize the various policies and procedures for the prudent investment of temporarily idle cash for the Costa Mesa Sanitary District. It outlines the investment - related activities, which comprise good cash management. In concert with these activities there are many facets of an appropriate secure short-term investment program, which will enhance the economic condition of the District while safeguarding its assets. II. INVESTMENT SELECTION OBJECTIVE The District strives to maintain the level of investment of all idle funds as near 100% as possible. All temporarily pooled idle cash is invested under the "Prudent Man Rule" (Civil Code Sect. 2261, et seq.) which states, in essence: "in investing... property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs..." This affords the District a broad spectrum of investment opportunities as long as the investment is deemed ®prudent and is allowable under current legislation of the State of California Government Code Section 53600 et seq..and the Costa Mesa Sanitary District Statement of Investment Policy. The District Treasurer, after meeting the legality, safety, liquidity and diversification criteria, will attempt to obtain the highest yield possible. The criteria for selecting investments, in order of priority are: 1. Le aii - The District's investments must conform to federal laws, state statutes, District ordinances and internal policies and procedures. The District has established internal controls to ensure that investment activities comply with all applicable statutes, ordinances and policies. 2. Safe - The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The District only operates in those investments that are considered very safe. 3. Li uidi - This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. The District's investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements as well as unanticipated needs for funds. 4. Diversification - The District's investment portfolio will be sufficiently diversified to avoid incurring unreasonable risks resulting from saturation of assets in specific security types, maturities or individual financial institutions. 5. Yield - Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. The basic premise underlying the District's investment philosophy is to ensure that funds are always safe, and available when needed. The District does not buy stocks, speculate or deal in futures or options. Any investment extending beyond a five -year period requires prior District Board approval. 111. AUTHORIZED INVESTMENTS The District limits its investments to the following vehicles: US Treasury Bills US Treasury Notes Federal Agency Issues - Examples include: • Federal Intermediate Credit Bank Debentures (FICB) • Federal Farm Credit Bank (FFCB) • Federal Land Bank Bonds (FLB) • Federal Home Loan Bank Notes and Bonds (FHLB) • Federal National Mortgage Association (FNMA) • Federal Home Loan Mortgage Corporation (FHLMC) Banker's Acceptances Certificates of Deposit (CD) Negotiable Certificates of Deposit Commercial Paper Medium Term Corporate Notes Money Market Mutual Funds Passbook Savings Account Local Agency Investment Fund (LAIF) IV. DELEGATION OF AUTHORITY The District Board hereby delegates its authority to invest surplus District funds to the District Treasurer. Delegation of the investment function by the District Board is limited to a one -year period. Failure to delegate deems the District Board to be trustee and fiduciary, therefore subject to the prudent investor standard. INTERNAL CONTROLS A system of internal control shall be established and documented in writing. The controls shall be designed to prevent loss of public funds arising from irregularities, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the District. Controls deemed most important include: control of collusion, separation of duties, custodial safekeeping, clear delegation of authority, confirmation of transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethics standards. VI. REPORTING Under provisions of Section 53607 of the California Government Code, the District Treasurer shall submit a monthly investment report to the District Board. This report will list the type of investment, institution, date of maturity, amount of deposit, rate of interest, current market value of securities with maturities in excess of 12 months, source of market valuations, and statement of compliance. Also provided shall be a schedule of market values maturing by date and type, and such other data as required by the District Board. VII. LEGAL CONSTRAINTS Surplus funds must be deposited in state or national banks, state or federal savings associations or federal credit unions within the State of California. These deposits cannot exceed the amount of the institution's paid -up capital and surplus. The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits or first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is a 105% letter of credit drawn on the Federal Home Loan Bank. The Treasurer may waive security for that portion of a deposit, which is insured pursuant to Federal law. Currently, the first $100,000 of a deposit is federally insured. Deposits over $100,000 are collateralized as indicated above. r1 VIII. DERIVATIVES The term derivative is a commonly used name that describes a variety of securities whose values are "derived from" the value of another asset, a reference rate or an index. Investment in derivative instruments is limited to securities that have periodic increases, or step -up interest rate adjustments that provide a increased yield. Investment in callable securities are also allowed, but must comply with other restrictions as specified in this Investment Policy. Derivative securities known as "inverse floaters" and other such securities that produce higher yields when purchased but have the possibility of producing low or no return through the life of the security, are not allowable. IX. BOND PROCEEDS When investing bond proceeds, the Costa Mesa Sanitary District will adhere to this Investment Policy when determining appropriate instruments for placing monies. If the bond's trust agreement is more restrictive than the District's Policy, then the trust agreement supersedes the District's Policy. The District may delegate its responsibly to the fiscal agent to ensure compliance with the bond covenants when managing bond proceeds on behalf of the District. Borrowing money solely for the purpose of investing and earning arbitrage is specifically prohibited. X. GRANDFATHER PROVISIONS The Costa Mesa Sanitary District investment strategy is to buy and hold until maturity. As legislation and the District's Statement of Investment Policy change, certain investments may become prohibited. Under Section 53601.6 of the California Government Code, the District may hold prohibited investments until their maturity to avoid incurring a loss. This allows the District to "grandfather" in securities purchased prior to the effective date of new legislation. When selling securities prior to maturity, losses are only acceptable if the proposed swap /trade can clearly enhance yield (value) over the life of the new security on a total return basis, or to prevent the further loss of principal. Sufficient written documentation to facilitate the audit of the transaction must be maintained. In the event that an issuer's rating is downgraded from when the security was purchased, the District Treasurer's awareness is heightened and the security will be closely monitored to determine if credit risk has been significantly increased. The District Treasurer will evaluate the need to sell the security prior to maturity. XI. BANKS AND SECURITIES DEALERS The Costa Mesa Sanitary District shall transact business only with banks, savings and loans, and "primary" or "regional" registered investment securities broker /dealers with offices located in the State of California. Any broker /dealer or financial institution wishing to provide services must complete the District's questionnaire and be approved by the District Treasurer. The number of broker /dealers authorized to transact business with the District is one broker /dealer for every $3,000,000 of portfolio size. XII. SAFEKEEPING AND CUSTODY Securities should be held in a third party custodian /safekeeping account. Said securities shall be held in a manner that establishes the District's right of ownership pursuant to Government Code Sections 53601 and 53608 et seq. All securities owned by the District should be held by a third party except the collateral for time deposits in banks and savings and loans, which is held by the Federal Home Loan Bank or an approved Agent of Depository. The collateral for time deposits in banks should be held in the District's name by the bank's Trust Department, or alternately, by the Federal Reserve Bank pursuant to Government Code Sections 53656 and 53657 et seq. 0 XIII. INDEMNIFICATION Any authorized investment personnel acting with prudence and in accordance with the District Statement of Investment Policy, will not be held personally liable for any investment losses. Through surety bonds the District is indemnified against any investment personnel acting with malfeasance, misfeasance or nonfeasance. XIV. CONFLICT OF INTEREST Any firm proposing to provide any type of investment service to the District shall acknowledge their familiarity with and agree to abide by any Federal and State laws or regulations pertaining to contractual conflicts of interest or contributions by such firms, their employees, spouses or agents. Any persons, firms, dealers, brokers. and advisors providing investment services or bond issue assistance shall disclose to the District Treasurer all fee sharing and commission arrangements with other entities or persons prior to the District agreeing to buy an investment or issuing bonds. XV. POLICY REVIEW The District Treasurer shall be responsible for reviewing and modifying this Statement of Investment Policy annually for District Board approval to ensure its consistency with the overall objectives of safety, preservation of principal, and liquidity, and its relevance to current law and current financial and economic conditions. XVI. SUMMARY The basic premise underlying the District's investment philosophy is conservative, and will continue to be, to ensure that money is always safe and available when needed. District Tre s rer Date Accountarib Date Attachments: Prudent Man Rule Investment Guidelines and Strategy Investment Procedures Internal Control- Guidelines Cash Controls Segregation of Responsibilities of the Treasury Functions • INVESTMENT GUIDELINES AND STRATEGY GUIDELINES: Guidelines are established to direct and control activities in such a manner that previously established goals are achieved. 1. Investment Transaction: Every investment transaction must be authorized and reviewed by the District Treasurer. 2. Pooled Cash: Whenever practical, cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated quarterly to each fund according to fund actual month -end cash balances. 3. Competitive Bids: Purchases and sales of securities are made on the basis of competitive offers and bids when practical. 4. Cash Forecasting: The cash flow for the District is projected with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements. 5. Investment Limitations: Security purchases and holdings are maintained within statutory limits imposed by the California Government Code. The District's current limits are: Permitted Investments/ Deposits US Government Securities Certificates of Deposits Bankers' Acceptances (1) Commercial Paper (1) Negotiable CD's (1) Medium Term Notes (1) LAI F Time Deposits DISTRICT POLICY 40mm ** n/a Unlimited 5 years * Maximum term unless expressly authorized by Governing Body. ** Limit set by LAIF Governing Board (per individual entity account). (1) Individual issuer limit of 10 %. GOVERNMENT CODE Maximum Percent Maturi Unlimited 5 years 25% 1 year 25% 180 days 25% 270 days 25% 5 years 25% 5 years 40mm ** n/a Unlimited 5 years * Maximum term unless expressly authorized by Governing Body. ** Limit set by LAIF Governing Board (per individual entity account). (1) Individual issuer limit of 10 %. GOVERNMENT CODE 6. Liquidit : The marketability (salability) of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands. 7. Diversification: The portfolio should consist of various types of securities, issuers, and maturities. 8. Evaluate Certificates of Deposit: a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. The District does not purchase Certificates of Deposit in excess of $100,000. b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes. Maximum Percent Maturi Unlimited 5 years* Unlimited 5 years* 40% 180 days 30% 270 days 30% 5 years 30% 5 years 40mm ** n/a Unlimited 5 years 6. Liquidit : The marketability (salability) of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands. 7. Diversification: The portfolio should consist of various types of securities, issuers, and maturities. 8. Evaluate Certificates of Deposit: a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. The District does not purchase Certificates of Deposit in excess of $100,000. b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes. INVESTMENT GUIDELINES AND STRATEGY (cont) II. STRATEGY: Strategy refers to the ability to manage financial resources in the most advantageous manner. 1. Economic Forecasts: Economic forecasts are obtained periodically from economists and financial experts through bankers and brokers to assist with the formulation of an investment strategy for the local agency. 2. Implementing Investment Strategy: Investment transactions are executed which conform with anticipated interest rate trends and the current investment strategy plan. 3. Rapport: A close working relationship is maintained with large vendors of the District. The objective is to pinpoint when large disbursements will clear the District's bank account. It is essential for good cash control that such large expenditures be anticipated, estimated as to dollar amount, and communicated to the Treasurer for liquidity planning purposes. 4. Preserve Portfolio Value: Standards are developed in order to maintain earnings near the market and to preserve the value of the portfolio. III. AUDIT: Annually, the District's external auditors analyze the District's portfolio for purchase price, market value, maturity date and yield associated with each investment for financial statement purposes. INVESTMENT PROCEDURES INTERNAL CONTROL - GUIDELINES I. OBJECTIVES OF INTERNAL CONTROL: Internal control is the plan of organization and all the related systems established by management's objective of ensuring, as far as practicable: • The orderly and efficient conduct of its business, including adherence to management policies. • The safeguarding of assets. • The prevention or detection of errors and irregularities. • The accuracy and completeness of the accounting records. • The timely preparation of reliable financial information. 11. LIMITATIONS OF INTERNAL CONTROL: No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including: • Management's usual requirement that a control be cost - effective. • The direction of most controls at recurring, rather than unusual, types of transactions. • Human error due to misunderstanding, carelessness, fatigue or distraction of functions. -The potential for a person responsible for exercising control abusing that responsibility. Frequently, a member of management is in a position to override controls which management has set up. C] INVESTMENT PROCEDURES INTERNAL CONTROL - GUIDELINES (cont) 0 111. ELEMENTS OF INTERNAL CONTROL: Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are: 1. ORGANIZATION: Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood. 2. PERSONNEL: Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies, together with the quality and quantity of supervision, are thus important. 3. SEGREGATION OF FUNCTIONS: Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or irregularities in the normal course of duty. If different people handle two parts of a transaction, collusion is necessary to conceal errors or irregularities. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations. 4. AUTHORIZATION: An appropriate responsible individual should authorize all transactions. The responsibilities and limits of authorization should be clearly delineated. The authorization for a specific transaction or granting general authority for transactions should be to a position commensurate with the significance of the transactions. Delegation of authority to authorize transactions should be handled very carefully. 5. CONTROLS OVER AN ACCOUNTING SYSTEM: Controls over an accounting system include manual and computerized procedures carried out independently to ascertain that transactions are complete, valid, authorized and properly recorded. CASH CONTROLS I. PROCEDURES PERFORMED BY AUDITORS WITH RESPECT TO CASH RECEIPTS: 1.. District procedures and controls are reviewed. Some of the system strengths are: a. Receipts are controlled upon receipt by proper registration devices. b. Receipts are reconciled on a daily basis. c. Amounts are deposited intact. d. All bank accounts are authorized by the District Board. e. Cash counts are done by two or more individuals. f. Bank reconciliations are reviewed. g. The posting of cash receipt entries in books is prompt. h. Receipt forms are prenumbered, accounted for, and physically secured. i. Proper approval required for write -offs of customer accounts. j. Checks are restrictively endorsed upon receipt. k. Adequate physical security over cash. I. Individuals who handle cash do not post account records or process billing statements. m. Adequate supervision of financial operations. 2. Significant revenues are confirmed directly with payor and compared with District books to make sure amounts are recorded properly. 3. Cash balances are substantiated by confirming all account balances. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements. SEGREGATION OF RESPONSIBILITIES OF THE TREASURY FUNCTIONS Function Authorization of Investment Transactions: A) Formal Investment Policy should be: • Prepared by: • Approved by: • Adopted by: B) Investment Transactions should be approved by: C) Monthly Investment Report should be: • Prepared by: • Reviewed by: • Submitted to: 2. Execution of investment transactions: 3. Timely recording of investments in Treasurer's records: 4. Recording of investments in the accounting records: 5. Accounting records approved by: 6. Verification of investment, match broker confirmation of Treasurer's records: 7. Safeguarding of Assets and Records: A) Reconciliation of Treasurer's records to accounting records, bank statements and safekeeping records: B) Approved by: C) Review of financial institution's financial condition, safety, liquidity, and yield potentials of investments: 8. Wire Transfer Control Procedures: A) Written amount, account and authorization agreement: B) Call -back verification of District Treasurer phone transfers: 9. Annual review of investment portfolio prepared by Accountant/ District Treasurer including: Investment types, purchase price, market values, maturity dates, yields and Safekeeping reports. Resnonsibili District Treasurer District Board District Board District Treasurer District Treasurer Accountant District Board District Treasurer District Treasurer Accountant District Treasurer Accountant Accountant District Treasurer District Treasurer Bank District Treasurer Independent Auditors for Financial Statements GLOSSARY OF INVESTMENTS L_J US Treasury Bills - are direct obligations of the United States Government issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest calculated on a 360 -day basis and actual invested days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security. An unlimited amount may be invested in US Treasury Bills. US Treasury Notes - are direct obligations of the United States Government with original maturities of 1 to 10 years. They are generally available in minimum denominations of $5,000 for two and three -year maturities, and $1,000 denominations for all other maturities. Notes are actively traded in a large secondary market and are very liquid. An unlimited amount of funds may be invested in US Treasury Notes with maximum terms of five years. The term may be extended if authorized by the District Board. Federal Agency Issues - are guaranteed directly or indirectly by the United States Government. All agency obligations qualify as legal investments and are acceptable as security for public deposits. Agencies usually provide higher yields than direct Treasury issues with all of the same advantages. An unlimited amount of funds may be invested in Federal Agency issues with maximum maturities of less than five years. The District Board must expressly authorize any investment with a maturity greater than five years. Examples include: Federal Intermediate Credit Bank Debentures (FICB) - are loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360 -day, 30 -day month basis. Federal Farm Credit Bank (FFCB) - are debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three and six -month maturities. The FFCB issues larger issues (one to ten years) on a periodic basis. These issues are highly liquid. Federal Land Bank Bonds (FLB) - are long -term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi - annual coupons. Interest is calculated on a 360 -day, 30 -day month basis. Federal Home Loan Bank Notes and Bonds (FHLB) - are issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies and mortgage- lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at 'maturity. The bonds are issued with various maturities and carry semi - annual coupons. Interest is calculated on a 360 -day, 30 -day month basis. Federal National Mortgage Association (FNMA) - are used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued four times a year with maturities from a few months to eight years. The minimum amount is $10,000 and carry semi- annual coupons, with interest computed on a 360 -day, 30 -day month basis. Federal Home Loan Mortgage Corporation (FHLMC) - is a government- sponsored corporation established to develop the secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Interest is paid semi - annually and is calculated on a 360 -day, 30 -day month basis. GLOSSARY OF INVESTMENTS (cont) Government National Mortgage Association (GNMA) - is established to monitor compliance with requirements for the structuring of securities backed by pools of mortgages guaranteed by the Federal Housing Administration, the Farmers' Home Loan Administration and the Veterans' Administration. All mortgages in the pool must carry the same interest rate and, when possible, the same maturity. Interest and principal on the mortgage pools is "passed through" to investors monthly after the deduction of service and guarantee fees. Student Loan Marketing Association (SLMA) - is established by the Education Amendments Act of 1972 by the US Congress to increase funds into student loans. SLMA is a for - profit, stockholder -owned corporation with the specific purpose of providing a secondary market for the federally sponsored student loans. Discount notes are issued on a daily basis to mature in one year or less with a minimum denomination of $100,000. Six -month floating rate notes are issued monthly with a minimum denomination of $10,000. Longer term fixed rate and floating rate securities are issued as needed. All loans are guaranteed by either the federal government or by a state or private agency. Bankers' Acceptances - are short -term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a high -grade negotiable instrument. Acceptances are purchased in various denominations for 30, 60, or 90 days, but no longer than 180 days. The interest is calculated on a 360 -day discount basis similar to Treasury Bills. The District may not invest more than 25% of its surplus money in Bankers' Acceptances with each issuer limited to 10 %. Certificates of Deposit (CD) - are time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. The District does not purchase Certificates .of Deposit that are not FDIC insured. The interest is calculated on a 360 -day, actual day month basis and is *ayable monthly. The District may invest up to 25% of its surplus money in insured CD's with maturities of one ear of less. Negotiable Certificates of Deposit - are unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high - grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. The primary market issuance is in multiples of $1,000,000, the secondary market usually trades in denominations of $500,000, and smaller lots are occasionally available. As a matter of practice, only the ten largest US banks, where there is a secondary market established for continued liquidity, are considered for investment. Purchases of Negotiable Certificate of Deposit may not exceed 25% of the District's surplus funds and five years to maturity. The District may not buy more than 10% of any single issuer. Commercial Paper - are short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial Paper is issued by corporations such as General Motors, IBM, etc. Local agencies are permitted by State law to invest in Commercial Paper of the highest ranking or of the highest letter and numerical rating as provided by Moody's Investor's Service, Inc., or Standard and Poor's Corporation. Purchases of eligible Commercial Paper may not exceed 270 days maturity, nor exceed 25% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Medium Term Corporate Notes - are unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments and are traded in the secondary market. Medium Term Corporate Notes can be defined as extended maturity Commercial Paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by a. nationally- recognized rating service, five year maximum maturity and may not exceed 30% of surplus funds. The District's restrictions are a maximum term of five years to maturity and total investments in Medium Term Corporate Notes may not exceed 25% of the District's surplus funds. The District may not purchase more than 0 0% of any single issuer. 10 GLOSSARY OF INVESTMENTS (cont) W—assbook Savings Account Demand Deposit - are interest bearing active deposits placed at state or national banks, state or federal savings and loan associations, state or federal credit unions and federally insured industrial loan companies. Monies placed in a savings account earn short -term interest. Deposits are FDIC insured up to $100,000, and may be in any amount. Local Agency Investment Fund (LAIF) - a special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $40,000,000 for any agency. The District is restricted to 15 transactions per month for each LAIF account. LAIF offers high liquidity because deposits can be converted to cash in 24 hours with no interest lost. Interest is distributed to those agencies participating on a per share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains a portion for administrative costs, not to exceed one - quarter of one percent of the earnings. The pooling of the State's surplus cash with the participant's surplus cash creates a multi - billion dollar money pool and allows diversified investments. In a high interest rate market, the District does better than LAIF however, in times of low interest rates, LAIF's yields are, higher. The District invests in the Local Agency Investment Fund whose Investment Policy allows investments in securities not specifically authorized by the District's Investment Policy, but allowable under the California Government Code. • • 11 r �SpSAN1Tq *., V Costa Mesa S District 4 f .. an Inbepenbent Special District Board gfDirectors Arlene Schafer Greg 61'bodside James Fenlm7an 4 rt Pe»TV Dan Kbrihinglon Staff Robin B. Hamers Hanager Districl Engineer (949) 631 -1731 June 30, 2005 Mr. Bruce Mattern 9441 Harcourt Circle Huntington Beach, CA 92646 RE: CMSD 2004 -2005, 2005 -2006 CAPITAL IMPROVEMENT PROGRAM Dear Bruce: Enclosed please find the proposed capital improvement program reports for the District's 2004 -2005 and 2005 -2006 fiscal year. 7Pomas A. fauth Assisiant manager Similar to previous years, please prepare your independent review and analysis of the projects individually and collectively as to necessity, costs, appropriateness of the entire Phone program, program, and any other areas warranting comment. If you desire additional backup °a" Revak such as maps, cost estimates or previous reports, please call me at 949/631 - oar-d Secrelmy 1731. ogI Wanagei Thank you again for all your work on behalf of the District. Please call Joan Revak at Alan R- Burns 949/645 -8400 ext. 223 to obtain a purchase order for your work and call me if you have cgal G"1117sel any questions. ti4v�rlr /lor,per Darts Sincerely, I i-eas urer Rob B. Hamers Phone Manager/District Engineer (999) 695 -8400 Fay Encl. ( 949) 050-2253 cc. Board Staff Address 628 1V 191h Street Costa ,tiles, CA 92C)217-?718 i U Primed oil Protecting our comniumit-,�`s �ealtfj b- rlrovi(bing SOW waste anb Sewer cof fection services. Recycled Paper costa mesasanitarlgaistrict.org 0 0 • CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2004 -2005 Prepared by Robin B. Hamers Manager /District Engineer June 27, 2005 vorEss, B. Lu q N RCE31720 EXP 1/2006 WIL FOF CAL�F�� .1 AN /rqR � f °mss GOO 6 i ��r� Costa Mesa R i ct an In6epenbent Special District COSTA MESA SANITARY DISTRICT Board of Directors Arlene Sehi?0- Gre,i� Mooclside CAPITAL IMPROVEMENT PROGRAM James Fe rrtnnan Art Pert,, FISCAL YEAR 2004 -2005 1)on 11'orlhingron PROJECT #149 SINKING FUND FOR FUTURE SEWER REPLACEMENT $100,000 (CR) Staff Ruhia B. Harmers PROJECT #174 Man ,ger WDR FOG PROGRAM PHASE II 142,279 (CR) Engineer )19) 031 -1731 PROJECT #175 OCSD COOPERATIVE PROJECTS GRANT - TELEVISING 311,758 (CR) Ft " "1i SEWER LINES ,.i�tnnt A9nnoger Jtt „ Re,�,k TOTAL $554,037 �1(10lil secrelill ' 1 "r 6'ram .Wanager Alan R. Burns L r•gn1 Counsel (CR) Denotes Capital Replacement Project • (CI) Denotes Capital Improvement Project (D) Denotes Design Phase only at this time ' blooper Davis (0) Denotes Other 7rcas ► ►rer cc: Rob Hamers Phone Tom Fauth 0)4y) 64,5_8400 Joan Revak Fax Wendy Davis tY -;1)) 050 -2753 Sherry Kallab a n1rl►•ess '(,ma Alowi, CA 92027-2718 is Printed on Protecting our coYmmunit,91s bea[tb �,,q provibing so[ib waste an6 sewer co[[ectiou services. H,Vcled Paper costa rnesasanitarNbistrict.orq I PROJECT No. 149 SINKING FUND FOR FUTURE SEWER REPLACEMENT The project was initiated in the - 1995 -96 fiscal year to plan for the ultimate replacement or reconstruction of the 1.2 million feet of gravity sewer system when it reaches its life expectancy. Deposits are made into the fund on a yearly basis as part of the Capital Improvement Program and the current balance is $1,495,805. In accordance with generally accepted government accounting principles, interest earned on the fund is credited to the general reserve, not this particular fund, so the project balance consists of the capital deposits. The Manager /District Engineer prepared a report dated December 1998 that reviewed the life expectancy of the sewer system and different philosophies for funding replacement sewers. Since that time the Manager /District Engineer has been monitoring the advances in sewer system rehabilitation, particularly no -dig technologies, in order to stay abreast of new techniques. • Two events will occur in 2005 -2006 that will assist in determining the desired level of reserves for the project. At the 2005 strategic planning workshop, the District Treasurer was requested to review and comment on the Manager /District Engineer's December 1998 sinking fund report for future sewer replacement, and secondly, the District was awarded a cooperative projects grant from Orange County Sanitation District that will provide matching funding for televising the Sanitary District's sewer system. The Sanitary District's sewer system will be televised within a one year period beginning August 1, 2005, and the results will assist in determining the appropriate rehabilitation program. Shown below are the sinking fund deposits to date along with the proposed deposit of $100,000 for the 2004 -2005 fiscal year. K EXHIBIT'A' COSTA MESA SANITARY DISTRICT SRFWFR IUVFUTARV RF(`AP 1071.WW%d A'r. GRAVITY SEWER-V , Lf. 1PRESSURE MAIN U. MANHC LAMI PUM GRAVITY SEWER -DIP, 11. GRAVITY S 70TAL TOTAL TOTAL DATE 4' VCP 6' VCP 8' VCP I 10' VCP 12' VCP 15 VCP 18" VCP 21' VCI 24" VCP 30' V4 4' S' 6" 8" 10" 12' 14" 18" MW ea. LH PS. 4' 6' 8" 10" 12" 15" 16' 21" 24' 6' PV41r.DVC , GRAVITY, L PRESSOR MILES 06130171 06!30171 508 348 877,169 36.792 19,318 21,715 14,135 1,893 880 4,017 5,639 490 3,165 3,709 59 15 1,479,370 14,191 282.87 06130'72 9,195 12 974 2,669 1,340 0 0 0 851 0 0 0 75 1 2 06/30/72 517 890143 39461 20,656 21715 14,135 1893 1,731 4,017 5639 490 3165 3,784 60 17 1505,548 15,042 287.99 ,626 17,059 18 0 1,894 0 0 0 0 0 0 0 86 3 0 06,13pr73 527.169 907,202 39 479 20. 23,609 14,135 1893 1 731 4,017 5,639 490 3,165 3 870 63 17 '.53.4,145 15,042 293.41 06!3074 7,181 -Io'lw 0 2,539 0 0 0 0 0 0 0 0 58 5 0 06/3W4 534.350, 917,377 39,478 23197 23 6 09 14 135 1 883 1,731 4,017 5,639 490 3,165 3 928 681 17 1 554.0640 15,042 297.17 06!30(75 3,415 13,060 2,006 2,835 0 10 0 218 0 0 0 (1,035) 2,884 3,243 151 4 1 06/307 537 765 930 437 41,485 26.032 23 609 14,145 1.893 1 ,949 4,017 5 639 490 2,130 2,8B4 3,243 4,079 72 18 1575,368 20.352 302.22 0613476 1,068 8,112 1,432 853 1,505 0 0 0 0 1,965 0 0 0 0 52 1 0 06/30/78 538 833 838.549 42,917 26 885 25,114 14,145 1.8m 1.949 4,017 7,604 490 2,130 2,884 3,243 4131 73,118 588,338 22,317 305.05 06130177 271 5, VV 57 0 0 0 0 0 0 0 0 90 0 57 0 0 _7 Sow 271 544,275 948,508 42,817 26,885 25,114 14145 1,893 1 949 4,017 7 604 490 2,130 2,974 3,243 4,188 73 18 1604 006 22 407 308.03 0 1446 1 4,030 0 0 0 0 0 0 300 0 0 0 292 0 0 34 0 1 140 30 06/ip7g 271 646.721 1 952,5W 42,917 26.885 25114 14 145 1.893 1,949 300 4,017 7.6D4 490 2,422 2,974 3,243 4,222 73 19 140 30 1.610.6U 22 9% 308.40 0613079 758 6,1461 15,628 519 2,995 1,662 0 0 0 0 0 0 0 0 0 0 106 0 249 546 20 81 0 06130179 1, 029 552867 968 ,164 43.436 29.883 26,776 14,145 1.893 1,949 300 4.017 7604 490 2422 2,974 3,243 4,328 73 19 389 546 201 91 30 1,639,269 22,999 314.82 0613080 0 3,218 5,049 0 0 0 0 0 0 0 .0 0 0 41 0 0 44 0 1 410 774 0 0 0 06/30/80 1,029 556.065 873,213 43 436 29 883 26,776 14145 1 1,849 300 4 017 7 604 490 2,463 2,974 3,243 4 372 73 20 799 1320 20 1)1 30 1 648,720 23.040 316.62 06+3081 0 72 1,405 0 1,950 0 1,847 881 0 0 0 0 0 0 0 0 0 33 0 0 1,146 151 180 0 0 0 06/30/81 1,029 556.157 974 618 43 436 31.833 26.7761 15.992 2 861 1,893 1.9a 300 4,017 7.6D4 490 2,463 2,974 3,243 73 20 1 148 950 1,500 20 91 30 1458,3M 23,040 318.44 06/3Q82 0 900 8,621 0 29 0 0 0 0 0 0 0 0 0 0 0 D 0 0 0 5 30 0 0 0 06 30!82 1,028 557 057 983 239 431.436 31.882 26,776 15,992 2.861 1,883 1,949 300 4,017 7,604 490 2 463 2 974 3 243 73 20 1.146 955 1.530 20 91 3D 7667 917 23,040 320.26 buium 0. 105 (285) 0 (16) 98 0 0 0 0 0 0 0 49 0. 0 0 F4.403 (1) 0 0 0 0 0 0 O 8 0SWI13 1,029 557,162 982 944 43436 31 848 26.874 75,992 2,861 1 893 1,949 300 4 017 7604 539 2 463 2,974 3,243 72 20 1,146 955 1540 20 91 30 8 1.667,827 23 089. 320.25 0613084 0 1,785 (11,887) 417 (7,950) 0 0 0 50 0 0 0 0 0 0 0 0 0 1,081 10 0 O 0 06/30/84 1029 558947 971047 43,853 29896 26874 15,992 3183 1A93 1,999 300 4,017 7,604 SW 2,463 2974 3,243 72 20 1,148 955 2,621 30. 91 30 8 1657,595 23.139 318.32 06!3085 0 600 1,261 427 1,043 2,116 798 1,302 657 59 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 30 06/30185 1 029 5%547 972 308 44,280 30 939 28.980 16,790 4 485 2 59 1,999 300. 4 017 7 604 539 2,463 2,974 3,243 4,437 72 20 '1,146 855 2621 30 91 30 8 13 30 .1,665 901 23,139 319.89 06/30186 0 1,160 (836} 1,464 0 (41) 517 1,085 0 0 0 0 0 0 0 0 0 0 13 0 0 0 179 181 0 4 0 0 0 0 06190186 1.029 560,707 971,672 45.744 30,939 28 949 17,307 5.570 2 550 59 1 999 300 4,017 7.6D4 539 2,483 2,974 3 243 4,450 72 20 1,M 1;134 2,802 30 95 30 8 13 30 1,669,814 23139 320.64 06130787 0 555 (522) 9 46 0 1,610 653 0 0 0 0 40 0 0 0 0 0 11 0 1 0 (81) 459 0 0 0 0 0 0 06/30/87 1,029 561,262 971,150 45,753 30,985 28949 18,917 6,223 2,550 59 1.999 300 4,057 7604 539 2463 2,974 3,243 4467 72 21 1,148 1.063 3.261 30 85 30 8 13 30 1,672,543 23,179 321.16 06/30186 0 (20) (317) 0 (1,731) 82 14 3,159 0 0 0 0 0 0 0 0 0 0 7 0 0 0 (109) 580 0 0 20 0 0 0 O 06/30/88 1.029 561.242 970,M 45,753 29.254 29,031 18,831 9,382 2 59 1,M 300 4,057 7,604 539 2 463 2,974 3,243 4 468 72 21 1,146 944 3,841 30 95 20 30 8 13 30 1.674,221 23,179 321.48 06130/89 0 1,125 803 0 0 0 0 0 0 0 0 0 0 0 D 0. 0 0 2 0 0 0 0 0 0 0 0 0- 0 0 0 06/30189 1,029 562 367 871 638 45 753 292 54 29 031 18,931 9,382 2550 1,999 300 4057 7,604 539 2 463 2 974 3,243 4,470 72 21 1,146 944 3,841 30 95 20 30 8 13 30 .1678,149 23,178 321.84 063090 0 (4) (1,351) 1,65 0 2,508 0' 0 0 0 0 0 0 0 0 0 0 0 15 0 0 0 0 (66) 72 0 0 0 0 0 0 06/30(90 1,029 562,363 970 285 47 405 29 31 539 18.931 8,382 2,550 59 1,999 300 4 057 7 604 539 2 463 2,974 3,243 4.485 72 21 1,146 944 3,775 102 95 20 30 8 13 30 1,678,960 23179 322.37 06130/81 0 (154) (7,079) (568) 80 16 0 0 0 0 0 0 O 0 0 0 0 0 (9) (1) 1 0 0 0 420 0 0- 0 0 0 .0 06/30/91 1 029 562 209 969 208 46.837 29.344 31 555 18,931 9 382 2 SW 59 1 999 300 4 057 7,604 539 2,463 2,974 3,243 4,478 71 22 1,146 944 3 775 522 95 20 3D 8 13 ,90 .1,677,685 23,179 322.13 06130/92 0 Z00 2,117 0 3252 116 0 0 0 0 0 0 0 0 0 0 0 0 22 0 i) 0 0 0 0 0 0 0 0 0 0 06130192 1.020 562.409 971 323 46 837 32 596 31 671 18,931 9382 2S50 59 1.999 300 4.057 7,604 539 2,463 2,974 3,243 4,498 71 21 I.746 944 3,775 522 95 20 30 8 13 30 1,683 370 23,179 323.21 0613490 0 120 1,576) 0 0 876 0 0 0 0 0 0 0 0 0 0 0 0 (5) 0 0 0 0 0 0 0 0 0 0 0 0 06/30193 1,029 562.5291 969,747 46 837 32,596, 32.647 18,931 9.382 2.550 59 1,999 300 4,057 7,6D4 539 2.463. 2,974 3,243 4.493 71 21 1,146 944 3 775 522 95 20 30 8 13 30 1,682,790 23,179 323.10 0 .150 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,125 0 0 0 0 0 0 0 0 0 0 0 0 0 06/3Q194 1, 029 562.679 969,747 46 837 32 596 32.647 18.931 8 2,550 59 1 999 300 4.057 7.604 539 2,44 2,974 4.368 4A93 71 21 1,146 944 1 31n 522 85 20 3D 8 13 30 1,682 940 24,304 323.34 0 150 (818) 880 0 0 76 0 46 0 0 0 0 0 0 0 0 1,093 4 0 0 0 0 0 0 0 0 0 0 0 0 06!30/85 7 029 562 829 968 829 47 717 32 596 92 Sd7 19,007 9382 2596 59 1999 300 4057 7804 539 2.463 2 4 5 461 4 497 71 21 1 146 944 3,775 522 95 20 30 8 13 3D 1683,274 25,397 323.61 Dari0196 0 1,850 3, 0 0 1,813 0 0 0 (584) 0 0 0 0 0 0 0 24 0 (1) 0 200 0 0 0 0 0 D 0 0 1 564,679 871 972 47.717 32.5W 34.380 18 007 8,382 2.5W 1 415 300 4,057 7.604 539 2,463 2,974 5,461 4,521 71 20 1,146 1.144 3,775 522 95 20 30 8 13 30 1690,180 24,813 324.81 06!30/97 0 90 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 OSW97 1.029 564.769 971.972 47,717 32,596 34.360, 19 007 9.382 2. 596 59 1 415 300 4057 7604 2'453 2,974 5461. 4521 71 20 1 146 1,144 3 775 522 95 20 30 8 13 30 1,680,270 24.813 324.83 D6130198 0 0 R76) 216 8 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 O 06/30/98 1,029 564 769 871 758 47,831 604 34 360 19007 9 382 2 59 1,415 300 4,057 7 604 2,483 2 974 5 481 4 522 71 20 1 146 1 144 3 775 .522 85 20 30 8 13 0 30 1,680,278 .24,813 324.83 0613x99 0 164 723 240 0 0 0 0 0 0 0 0 0 0 0 13 0 0 0 200 20 0' 0 0 0 0 0 32 3218 06130!99 1029 564 9W 972 47 933 604 34 600 18007 9382 2 586 59 1 415 300 4,057 7,604 2463 2,874 5461 4 535 71 20 1,146 1344 9 795 522 95 20 . 30 8 13 32 3.248. 1 684,875 24,813 325.70 X79 OBJ30/00 1,029 564 867 972 452 46150 32 604 34 600 19,007 9 382 596 59 1,415 300 4 057 7 604 2 463 2,974 5 481 4,537 71 20 1 148 1,344 9 795 522 95 20 3D 8 13 32 3,248 1,694 999 24 813 325.72 0613((01 258 ]539 3 06130/01 1 029 564 887 972 710 48150 32,604 34 600 19 007 9 362 2 59 t 415 300 4,057 7,604 2 463 2,974 5 461 4,540 71 20 1 146 1 344 3 795 522 95 20 30 8 13 32 3,2.18 1 695,257 24 813 325.77 1,460 2,580 15 06/30/02 029 568,327 975 290 48150 32 604 34,600 19 007 9 382 2 596 59 1,415 300 4 057 7,604 2,463 2 974 546, . 4 SW 71 20 7 146 1,344 3,795 522 95 20 30 8 13 32 3248 1 699 297 24,813 326.54 q'029 029 568,327 975,290 48150 32,604 94 600 19 007 9 382 2,596 59 1,415 300 4 057 7,6D4 2 483 2,974 5,46-1 4 71 20 1146 1 344 3,795 522 95 20 30 8 13 32. 3,248 1,699,297 24 813 06(3=3 326.54 3,051 .706 26 569':378 978,998 48,150 32 604 Sd 600 19007 9 382 2,586 59 1,05 300 4,057 7,604 2463 2974 5 461 4 581 71 20 1,148 11344 3,795 522 95 20 30 8 13 32 1 3,248 1,706.0541 24,813 327.82 A'r. • oGiBff'n COSTA MESA SAWAW MSTMT I pwM alVCerrnov ee .. Tc f..m. Ra ii��• , „ �milm�i�iio�� ®�i�■��' i��i�' ��in� c��■ ��iri�i■ iii��i��iiii��i��oa��ii�ii■ ■i��o��o -- �miE�n��i��■ io�i��io�m� ■��u��nii��i�� o��m�m��m■ ioQi��■■ �n�i�i��i��oi��io�i ■©��i�i��s�om�� i■ ��. ��- z��■ m��m��o��io��i��in�i�� ©�i�os��o��i�i��i��Q ®�� o�■ i�a��iii��i��i■ ��iii�i�� ■r�ii�ii��e��i�� m��C ID��ii�i�iiiiii�� ]ii ® ®i�7��liiiii�� ©F�•` --]ice L' �J�® mE�➢ E�] E�lii�ii�7iiii�iiiii� 7��]�1�7iii��'3is �i��1� -r ��iEl��iII •l��7i�ii�]i��ii� ® ©��liiii ��Cli� ��IIII]CIl ISOM iE I sm® �� ®m��II7tLiCr7�.�T•7�- ��i�]�•�- i�Qili��ii ©cam- r3i ©��J��li�l��E�� ,.: F.,.l ��i��l iit l�]i��7iii�i��iii�•3i��iiiii�� ®Cliff ��m��• 3i�( ��miE�iiiiii��ii�ii� ]i ©��iiiii��il�7Cr�- �0® ��tr'%�I]�'i��'/• •<rtir �3�iY3�i�iiii��i��ii ©mi ©��Jiii�l��Om�l�� i®® �1�� [.- ri ©�7�]iL�i��J�lii�i��is ]iii ©�i�i ©��iii�l��?3�� •• �® F' �1�-` �1 ��l ri�] i��iiii�Qilii�ii ©��i ©�]��iiiii��70��'� -• 1 �M O RM =� or WIM 0 � 01= Nl =� �.._ ii�0��3�0�L�7 ��l �J �i�[ �ii�iiE�l i��3�7i ©��➢i��l�i��l�iii��ff.��➢ ©6;�7� �MMK JEC3��tI7�lDikJG�i]iiLiEl iii© 0� '! ©�7�Q�T3��l�i�l��7[I�'Jir�� -�-► i©[ �1® F�11© �7® iiiiii��mi�ii�iii��II ]iiiii�i�i� Ra 0 Sinking p Fund Deposits Fiscal Year Deposit 1995 -96 $ 100,805 96 -97 200,000 97 -98 200,000 98 -99 200,000 99 -00 320,000 2000 -01 125,000 01 -02 125,000 02 -03 125,000 03 -04 100,000 Proposed 04 -05 100,000 40 Total Deposits $1,595,805 0 3 �J 6_1 Project No. 174 WDR FOG Program Phase II The Santa Ana Region of the State Water Quality Control Board adopted the Waste Discharge Requirements (WDR) for all sewer system owners tributary to the Orange County Sanitation District treatment plants. The WDR places a prohibition on sewer spills and requires increased sewer system management to achieve this goal. One of the requirements of the WDR is the preparation and adoption of a grease control program by December 2004. The program must include the legal authority and other elements necessary to eliminate or control discharges of grease into the sewer system. Grease has been determined to be the number one cause of sewer line blockages and spills and associated contamination of ocean water. The Orange County Sanitation District and other agencies subject to the WDR commissioned a comprehensive fats, oils, and grease (FOG) multiphase study. Phase I was completed and determined the elements for a successful grease control program. Phase II includes the testing of various grease control technologies and is approximately 50% complete. Under CMSD Project No. 172, a consultant for the District performed a FOG Characterization study. Characterization refers to determining the source or cause of grease in the system and the impacts on the system. Every sewer system owner has "hot spots ", defined as segments of line requiring frequent cleaning, some as often as once a week. The main cause of hot spots is grease, however, pipe problems such as offset joints, roots, or sags can themselves cause problems or combine with grease to cause a frequent problem. The Characterization of the CMSD system included a survey of the 400 food service establishments (FSEs) in the District to ascertain which FSEs have grease control devices such as interceptors. The survey entailed sending a person to the FSEs and meeting with the owner or manager to complete a check list of items. The information was then compiled into a data base. Along with the FSE survey was an analysis of the hot spots. A District -wide map was prepared that shows the FSEs with grease control devices, those without grease control devices, the locations of the hot spots, and the location of the sewer spills for the last two years. Correlation between the FSEs, the hot spots, and the sewer spills discloses which FSEs need grease control to alleviate the hot spots and future sewer spills. 4 0 Ll The District also adopted a new grease control ordinance, Ordinance No. 51, which gave the District the legal authority to implement a comprehensive grease control program. The WDR required the legal authority to be in place by December 2004 in order to begin the grease control program in January 2005. The District complied with these deadlines and this project is the beginning of the grease control program implementation. This project report is being written retroactively due to delaying the allocation of 2004 -2005 CIP funds as a safety net for the District's recent purchase of its new headquarters. When the purchase was successful, the District authorized the consultant Environmental Engineering and Contracting (EEC) to begin the first year grease control program implementation To date, FOG permits have been sent to the majority of the FSEs within the District and the monitoring and inspection has resulted in reduced discharges of grease. The project also includes sewer televising work to provide FSEs proof that their restaurants are discharging FOG. The budget for the project is comprised of the following item: FOG Program Documents and First Year Implementation Services - $142,279 5 0 Proiect No. 175 0 OCSD Cooperative Proiect Grant — Televising Sewer Lines The Costa Mesa Sanitary District was awarded a cooperative projects grant from the Orange County Sanitation District in order to identify Inflow and Infiltration (1 /1) in the CMSD sewer system. Inflow is the occurrence of rainwater or surface water runoff entering the sewer system through the holes in manhole covers or through illegal connections while Infiltration is the occurrence of underground water entering the sewer system through cracks in the pipeline or through cracks in the manholes. The capacity of the two OCSD treatment plants is strained during heavy rains due to a significant amount of 1/1 entering the sewer system. OCSD adopted a proactive approach to decreasing 1/1 by offering 50% matching funds to local agencies for projects that decrease 1 /1. Included in the approved list of projects are investigative studies such as televising the sewer lines to identify sources and locations of 1 /1. The Costa Mesa Sanitary District submitted an application for televising the sewer mains and performing sewer manhole assessment to identify 1 /I. It is believed that Infiltration into the CMSD sewer system is minimal but Inflow is significant. The cooperative projects grant from OCSD will fund up to 50% of the cost of televising the approximately 1,129,420 linear feet of sewer main at a cost not to exceed $0.55 per foot. This equates to equal contributions from OCSD and the CMSD of approximately $310,590.50 In addition to the Sanitary District's share of approximately $310,590.50, there are additional costs that will be incurred on the project. These will be budgeted in the 2005 -2006 or subsequent Capital Improvement Program reports. These costs include design phase services, administrative work, inspection, and report preparation. The televising is scheduled to begin in August 2005. CMSD contribution towards televising - $311,758 0 9 F- COSTA MESA SANITARY DISTRICT BOUNDARY MAP Ll 'A !"Fl, nV- rA fvgr.. IV. V! 4 2.4 M. • IL x" N v pl. 1i ri t,.t. � e -n Eta '"A IWO man 1-aaa soq" — CITY 60UNDA! PUBLIC GRADE PUBLIC INTER] FROFOmM P.0 A PUEM0 PARR FIRE STATIC ------------- PROPRO-SED : '"A IWO man 1-aaa soq" — 0 CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2005 -2006 Prepared by: 9 Robin B. Harriers Manager /District Engineer June 27, 2005 oIR vES.Slz =Qw CIO ca a RCE31720 � EXP 112006 � �f9rF�F CAL��\� �$�sanlrgRr Costa Mesa SanitarN District r w pORaT ... an Inbepenbent Special District Board of Direefois Arlene. Schafer Greg I Yowhdde James Fcnwzrcm Art Perry lhni 41'orthington staff, 1?ohm B. Homers Manager i ?rrtricl Engineer l'la'l/ 031 -1731 `7r77AaS .'�. Faalll J.. llcrr, INI'd Scoctary ram R9anager Alan R. B111'12S Le "(11 Counsel Hooper Davis Treasurer Phone 049) 04s -8100 Far 7)41)) 050 -2253 Address 'r' It. 19111 Sine/ C'osia A,fcmi. CA 9211 17x718 F_ -I L-A COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2005 -2006 PROJECT #101 WESTSIDE PUMPING STATION ABANDONMENT $100,000 (CR) PROJECT #149 SINKING FUND FOR FUTURE SEWER REPLACEMENT 100,000 (CR) PROJECT #164 MISCELLANEOUS SEWER WORK 60,000 (CR) PROJECT #168 TUSTIN PUMP STATION RELOCATION — 1ST ADDITIONAL APPROPRIATION 150,000 (CR) PROJECT #175 OCSD COOPERATIVE PROJECTS GRANT - TELEVISING 125,000 (CR) SEWER LINES — 1ST ADDITIONAL APPROPRIATION PROJECT #176 WDR FOG PROGRAM PHASE III 150,000 (CR) PROJECT #177 CAPITAL FACILITIES ACQUISITION FUND 115,000 (CR) (0) PROJECT #178 REPLACEMENT OF SEWER BY -PASS PUMP 75,000 (CR) (0) PROJECT #179 BUILDING AND GROUNDS IMPROVEMENT FUND 75,000 (CR) (0) TOTAL $ 950,000 (CR) Denotes Capital Replacement Project (CI) Denotes Capital Improvement Project (D) Denotes Design Phase only at this time (0) Denotes Other cc: Rob Hamers Tom Fauth Joan Revak Wendy Davis Sherry Kallab `Prinrnvlon PrOteCtlYlCj OLtr COY11111L1n.tps �ealth tip provi6ing sol@ Waste anb sewer collection ser711Ces. Recycled Paper CostamesasaYlltar-,vb1strlCt.Ora } Project No. 101 — Westside Pumping Station Abandonment The project goal is to abandon six west side Costa Mesa Sanitary District pumping stations, one City of Newport Beach pumping station, one private pumping station at the west end of 18th Street, and one future Banning Ranch pumping station and replace them with either a gravity sewer leading to one of the Orange County Sanitation District (OCSD) treatment plants or a regional pumping station. The removal of pumping stations from the system reduces electricity costs, decreases operation and maintenance costs, and decreases the potential for sewer spills. The District has 20 pumping stations and the maintenance and operation of these labor - intensive facilities represents a significant cost to the District. Also, the incidence of sewer spills subjects the District to fines from the Regional Water Quality Control Board Two projects of the abandonment plan have already been completed; the Sanitary District constructed a dry sewer in Canyon Park during the park rehabilitation project, and Congress Pumping Station has been abandoned with the flow redirected to the Canyon Pumping Station. District Staff has met with Orange County Sanitation District (OCSD) Staff on a number of occasions and the OCSD Staff will not participate in the gravity system option and may or may not participate in the regional pumping station option. Therefore, CMSD Staff is proceeding with the assumption that OCSD will not be a participant in the project. The City of Newport Beach has reaffirmed its participation in the project and will allow the District to accept the flows from the W. 19th Street Newport Beach island into the regional pumping station and will also allow the Sanitary District to take over and utilize the existing CNB sewer force main and easement. The new regional pumping station will be located in the County of Orange Talbot Regional Park. Under the California Environmental Quality Act (CEQA), a finding is required as to whether the project is exempt, a negative declaration is determined, or whether the impacts need to be addressed in an environmental impact report (EIR). District Staff met with an environmental consultant and it was agreed that an "environmental constraint study" should be completed to determine the proper course of action under CEQA. Prior to the consultant performing the study, District Staff must prepare an accurate base map showing the location of the existing and proposed sewer facilities in relation to the Talbot Regional Park, Victoria Street bridge, and other utilities. Proposed budget CMSD Staff — preparation of Base Map, discussions with other agencies, preparation of project reports $ 15,000 Environmental Constraint Study 75,000 Reserve 10,000 0 Total 2 $100,000 el ....... ....... 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M I P. a . i w A p L— r—mm: E� A P R 2 COizTA R 3 R 4 P4 R4 MF A 77 ABA fjix>w ms=-m-T PROJECT No. 149 SINKING FUND FOR FUTURE SEWER REPLACEMENT The project was initiated in the 1995 -96 fiscal year to plan for the ultimate replacement or reconstruction of the 1.2 million feet of gravity sewer system when it reaches its life expectancy. Deposits are made into the fund on a yearly basis as part of the Capital Improvement Program and the current balance is $1,595,805. In accordance with generally accepted government accounting principles, interest earned on the fund is credited to the general reserve, not this particular fund, so the project balance consists of the capital deposits. The Manager /District Engineer prepared a report dated December 1998 that reviewed the life expectancy of the sewer system and different philosophies for funding replacement sewers. Since that time the Manager /District Engineer has been monitoring the advances in no -dig sewer rehabilitation to stay abreast of new technologies. Two events will occur in 2005 -2006 that will assist in determining the desired level of future funding for the project. At the 2005 strategic planning workshop, the District Treasurer was requested to review and comment on the Manager /District Engineer's December 1998 sinking fund report, and secondly, the District was awarded a cooperative projects grant from Orange County Sanitation District that will provide matching funds for televising the Sanitary District's sewer system. The Sanitary District's sewer system will be televised within a one year period beginning August 1, 2005, and the results will assist in determining the long term rehabilitation program. Shown below are the sinking fund deposits to date along with the proposed deposit of $100,000 for the 2005 -2006 fiscal year. • 0 Proposed • CJ Sinking Fund Deposits Fiscal Year 1995 -96 96 -97 97 -98 . 98 -99 99 -00 2000 -01 01 -02 02 -03 03 -04 04 -05 05 -06 Total Deposits EI Deposit $ 100,805 200,000 200,000 200,000 320,000 125,000 125,000 125,000 100,000 100,000 100,000 $ 1,695,805 Project #164 - Miscellaneous Sewer Work and Manhole Adjustment • This project provides funding for small emergency repairs as well as for the purchase and placement of sewer manhole frames and covers. Examples of emergency work funded by this project in the last fiscal year are the replacement of sections of leaking discharge piping in the Tustin Pumping Station, 23rd Pumping Station, and the Elden Pumping Station. This project assists in stabilizing the overall CMSD budget as it provides a funding source for the on -going small emergency repairs inherent in sewer agency operations. • • Appropriation for Miscellaneous Sewer Work - $ 60,000 5 Project No. 168 — Tustin Pumping Station Relocation This project is a recommendation for an additional appropriation to Project No. 168, Tustin Pumping Station Relocation. The project was approved for the 2001 -2002 fiscal year and entails relocating the sewer pumping station from the west side of Irvine Avenue to the east side, just south of Mesa Drive. At one point, remodeling the station in place was considered an option, however, the County of Orange Irvine Avenue reconstruction project will widen Irvine Avenue to the degree that there is no method to remodel the station in place. The best option is to relocate the station across Irvine Avenue where there is more land. The City of Newport Beach (CNB) and the Irvine Ranch Water District (IRWD) both desire to construct new water lines in the area of the road widening. Because the Sanitary District has multiple sewer lines in the intersection of Irvine Avenue and Mesa Drive, CNB and IRWD are unable to achieve a reasonable water line alignment through the intersection. Additionally, the Sanitary District had previously desired to consolidate the sewer lines, particularly with the pumping station relocation project. Therefore, the Sanitary District expanded the scope of the pumping station project to add the consolidation of the sewer lines. CNB and IRWD desired to complete the water line construction in the near term, rather than in mid 2007 when the road project will occur. CNB offered to absorb the design costs for the sewer line consolidation, which saved the Sanitary District approximately $30,000. CNB, IRWD, and CMSD agreed to a joint project that is currently under construction and includes the CMSD sewer line consolidation. The pumping station work will be Phase II of the project and will begin in early 2007. The sewer line consolidation cost is approximately $450,000 resulting in $50,000 remaining in the initial appropriation for the pumping station relocation. An additional appropriation of approximately $700,000 is required for the pumping station relocation costs. Sharply rising construction costs have increased the budget from $500,000 for the pumping station to $750,000. Because there are nine CIP projects in the 2005 -2006 fiscal year, only $150,000 is being recommended as an additional appropriation. The remaining $550,000 will be transferred from unused balances of other projects or be allocated in the 2006 -2007 fiscal year. First additional appropriation - $150,000 n T -. �rS`L kyWo. a CURB do GUTTER aosr. r nog svu ut� a - - -Q _ � -oesr. r nc as uc DUE r sbe uc =--I _ —- x! EXISTING FENCE 0 ��C No• t�8 TUO-118 (Wplua gTAtlaN fr-l- cr,^jiohl oo*� /f P.P. III I I � EXIS77NG PUMP STATION (TO BE ABANDON) AOff OR!( GJ �/ I I w Y�1y i- S s— f -� L I�r rar. s`ce uw 1� . NertirR" �I y � � � IRVINE TAI - �" - - -�- - - - --- �I , I I AVE. W. cut is' At wwwr ac. NEW MAV" SEWER LNE I'I I I I PROPOSED CURB do GUTTER co PROPOSED NEW I I I PUMP STATION I I I q ql I � Iq III I I I I q I I ql I I q j. ql I I I q I I ql I i I q GA e I " MAW P.P. III I I � EXIS77NG PUMP STATION (TO BE ABANDON) AOff OR!( GJ �/ I I w Y�1y i- S s— f -� L I�r rar. s`ce uw 1� . NertirR" �I y � � � IRVINE TAI - �" - - -�- - - - --- �I , I I AVE. W. cut is' At wwwr ac. NEW MAV" SEWER LNE I'I I I I PROPOSED CURB do GUTTER co PROPOSED NEW I I I PUMP STATION I I I q ql I � Iq III I I I I q I I ql I I q j. ql I I I q I I ql I i I q GA Project No. 175 — OCSD Cooperative Projects Grant — Televising Sewer Lines — 1St Additional Appropriation Project No. 175 The Costa Mesa Sanitary District was awarded a cooperative projects grant from the Orange County Sanitation District in order to identify Inflow and Infiltration (1 /1) in the CMSD sewer system. Inflow is the occurrence of rainwater or surface water runoff entering the sewer system through the holes in manhole covers or through illegal connections while Infiltration is the occurrence of underground water entering the sewer system through cracks in the pipeline or through cracks in the manholes. The capacity of the two OCSD treatment plants is strained during heavy rains due to a significant amount of 1/1 entering the sewer system. OCSD adopted a proactive approach to decreasing 1/1 by offering 50% matching funds to local agencies for projects that decrease 1 /I. Included in the approved list of projects are investigative studies such as televising the sewer lines to identify sources and locations of 1 /I. The Costa Mesa Sanitary District submitted an application for televising the sewer mains and performing sewer manhole assessment to identify 1 /I. It is believed that Infiltration into the CMSD sewer system is minimal but Inflow is significant. The cooperative projects grant from OCSD will fund up to 50% of the cost of televising the approximately 1,129,420 linear feet of sewer main at a cost not to exceed $0.55 per foot. This equates to equal contributions from OCSD and the CMSD of approximately $310,590.50 The 2004 -2005 fiscal year budget included $311,758 to cover the CMSD share of the televising costs. In addition to the Sanitary District's share of approximately $310,590.50 for televising, there are additional costs that will be incurred on the project. These costs include design phase services that include preparing the maps and manhole numbering for the 4,500 manholes, administrative work, inspection, manhole assessment by the CMSD inspector, and report preparation. The televising is scheduled to begin in August 2005. A 2nd Additional Appropriation may be required in the 2006 -2007 fiscal year. The proposed first additional appropriation is as follows: Design $ 12,000 Televising 0 M.H. Assessment and Data Compilation 25,000 Inspection, Contract Administration, Reports 80,000 Reserve 8,000 Total $ 125,000 7 0 Project No. 176 WDR FOG Program Phase III The project will fund the District's use of a consultant to continue the fats, oils, and grease (FOG) program implementation that is required under the Regional Water Quality Control Board's Waste Discharge Requirements (WDR). Previous projects were Project No. 172 and Project No. 174. This project will continue where Project No. 174 terminates, which is near the end of the first year of informing the 393 food service establishments of the new grease control regulations, issuing permits, and insuring compliance with the new requirements. Recommended appropriation - $150,000 to • Project No. 177 Capital Facilities Acquisition Fund The Sanitary District has historically shared field crew services with the City of Costa Mesa with the Sanitary District receiving sewer lining cleaning services and the City receiving storm drain cleaning services. Due to the pending retirement of field crew members coupled with contractual language differences between the District and the City, the agreement may be reaching the point of termination. The CMSD Manager /District Engineer and the Assistant Manager have been considering the various options for field crew services of utilizing 100% contract services, utilizing a combination of contract and in -house services, or utilizing 100% in -house services. One of the primary concerns of the ultimate arrangement is emergency response time. Four of the five existing crew members live in Costa Mesa, resulting in the current response time being less than 20 minutes. Lengthy emergency response times result in larger sewer spills. District Staff believes the best alternative is to have one contract cleaning crew and one in -house cleaning crew with an in -house supervisor. The contract cleaning crew can perform production cleaning while the in -house crew can perform hot spot cleaning, can respond to homeowner concerns and would be able to assist the supervisor during pumping station maintenance. District Staff understands that the transition to the ultimate staff configuration may involve a period of 100% contracting out while sufficient funds are acquired. The Sanitary District does not own the sewer cleaning trucks being used but does own two standby diesel generators, two by -pass pumps, a hoist, manhole frames and covers, sewer pumps, tools and other items. All three of the options for field crew services require the District to obtain a yard, or share a yard with another municipality. The recommended funding below is the first appropriation. First appropriation - $115,000 0 I • 0 Project No. 178 — Replacement of Sewer By -Pass Pump The District owns two sewer by -pass pumps and two standby diesel generators. The generators are relatively new and supply electricity to the pumping stations when there is a power outage. The by -pass pumps supply pumping capability when a station is shut down for pump repairs, line repairs, or valve repairs. Both existing by -pass pumps are old and have reached their life expectancy. The field crew supervisor and District staff have researched the industry to determine the best model for the District and are prepared to make a recommendation for the purchase on a new by -pass pump. Appropriation for new by -pass pump - $75,000 10 • • Project No. 179 — Building and Grounds Improvement Fund The District closed escrow on the new CMSD headquarters at 628 W. 19th Street, Costa Mesa, on March 8, 2004 and Staff began operations after interior improvements were completed. The building is in good condition, however, certain exterior building improvements and landscape improvements are required. In order to address these concerns, the Board established an ad -hoc building and grounds committee consisting of two Directors and Staff. The committee's charge is to consider various improvements and make recommendations to the full Board. The committee recommended retaining a Landscape Architect to provide professional advice and recommendations for the improvements and to prepare construction drawings as directed. The Landscape Architect has been retained and will soon be preparing preliminary and final plans for the landscape improvements. A few of the exterior building and landscape improvements being considered are a flag pole, refurbishing the columns, new roof, new building color, removing unneeded sidewalk to improve pedestrian circulation, installing new hedges and fencing, improving green areas, adding flowers, and other improvements. This project will provide funds for the design services and construction of various building exterior and landscape improvements. Due to the unknown scope of the improvements, additional appropriations may be required in the following fiscal years. Appropriation for building exterior and grounds improvements - $75,000. 11 1 I 1 1 Sim I I I I II \— PARKING AREA ' I I LI LT`JLJ t.1J LI a _ w. A a ha . .d nA W` C&M HO I I • O&W WI I � 4. PLANTER I Iomm I cm A 01111@! I _I_ _ _ _ _ _ _ W. 19TH STREET • • �T� MPC-^ OANIT ^FY Pit%TIGT "�F.AMuAJ;tTj�f� " 646 W. PDT# 5 Tf.-T 004OXA MVIO.-A • COSTA Mersa SAN, 7a�'DI,S2�ZC7 ... an Independent Specia(District Memorandum To: Board of Directors ` From: Wendy H. Davis, District Treasurer Date: July 11, 2005 Subject: Treasurer's Report for the Month of June 2005 Attached is the Treasurer's Report for the month of June 2005. As required by the District's Statement of Investment Policy, the Treasurer's report delineates all investment activity during the month. This report lists the types of securities held in the District's portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of June 30, 2005. The District's investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 14, 2004 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian; Bank of New York, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer's Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the Sanitary District's investment portfolio as of June 30, 2005, was 3.543 %. The yield to maturity of the portfolio was 3.525 %. The District's weighted average interest rate was 69 basis points (.687 %) above the daily effective yield of LAIF, which was 2.856% as of June 30, 2005. The weighted average number of days to maturity for the District's total portfolio was 839 days (2.30 years). The average duration of the underlying securities in LAIF as of June 30, 2005 was 151 days. Protecting our community's heafth by providing solid waste and sewer coffection services. costamesasanitarydfstrzct. org Compliance Reporting . The District's investment portfolio is in compliance with its liquidity limitations, which requires a minimum of 20% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of June 30, 2005 is 25.05 %. As of June 30, 2005, the District has adequate reserves necessary to meet its obligations for the next six months. is is COSTA MESA SANITARY DISTRICT Treasurer's Report of Pooled Cash and Investments as of June 30, 2005 Active Accounts Bank of America Reconciling Items Total Active Accounts Investments Local Agency Investment Fund Money Market/Sweep Account Medium Term Corporate Notes Federal Agency Securities Total Investments Total Pooled Cash & Investments BANK BALANCE $ 39,757.19 39,757.19 DEPOSITS IN TRANSIT 7,253.74 2,242.06 9,495.80 OUTSTANDING CHECKS 7,814.70 1,oi-+.IV Unaudited BOOK BALANCE $ 39,196.23 2,242.06 41,438.29 Market Value Market Value $ 1,900,000.00 - - $ 1,900,000.00 9,720.00 - - 9,720.00 682,350.75 - - 682,350.75 7,755,645.00 - - 7,755,645.00 10,347,715.75 - - 10,347,715.75 $ 10,387,472.94 9,495.80 7,814.70 $ 10,389,154.04 • Costa Mesa Sanitary District Pooled Cash and Investments by Fund as of June 30, 2005 CMSD Solid Waste Activities CMSD Liquid Waste Activities Total Pooled Cash & Investments ez2ga�,v 711110s endy H. Davis / Date District Treasurer • $ 1,845,419.89 8, 543, 734.15 $ 10,389,154.04 COSTA MESA SANITARY DISTRICT Investment Activity Summary for the Month of June 2005 Total investments outstanding as of May 31, 2005 Additions: Investment Purchases: Deductions: Investment Maturity /Sale Proceeds: Investments Called: Net increase (decrease) in Sweep Account Net increase (decrease) in LAW • Total investments outstanding as of June 30,2005 • $ 11,090,498.55 none none none (67,782.80) (675,000.00) $ 10,347,715.75 CUSIP Number Investment n/a n/a 882508AH7 3128X1AT4 31331 QV61 3128X1 AW7 31331 QS32 31339YD RO 31339YPE6 3136F34U7 3128X26Y6 3133X5ZK7 3133X63Y0 Local Agency Investment Fund Bank of New York -Sweep Acct Texas Instruments -Med Term Note Federal Home Loan Mortgage Corp. Federal Farm Credit Bank Federal Home Loan Mortgage Corp. Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal National Mortgage Assoc. Federal Home Loan Mortgage Corp. Federal Home Loan Bank Federal Home Loan Bank COSTA MESA S #ARY DISTRICT Investment and Investment Earnings as of June 30, 2005 Total * Standard & Poors = A, Moody's = A2 as of July 11, 2005 * *Represents the LAIF daily rate at 6/30/05. $ 10,440,346.50 85,025.21 Interest Purchase Maturity Coupon Investment Earned at Date Date Rate Amount 06/30/05 Comments n/a n/a 2.856% $ 1,900,000.00 n/a ** n/a n/a 2.490% 9,720.00 n/a 05/15/01 02/01/06 6.125% 681,095.25 17,226.56 Bullet;* 05/14/03 05/14/07 3.250% 1,000,000.00 4,243.05 06/24/03 09/24/07 2.625% 500,000.00 3,536.46 05/14/03 05/14/08 3.750% 1,000,000.00 4,895.83 06/18/03 06/18/08 3.240% 600,000.00 702.00 07/22/03 07/22/08 3.050% 1,499,531.25 20,206.25 07/30/03 07/30/08 3.400% 1,000,000.00 14,261.11 08/14/03 08/14/08 3.910% 500,000.00 7,439.86 04/27/04 04/27/09 4.125% 1,000,000.00 7,333.33 04/30/04 04/30/09 4.050% 500,000.00 3,431.25 04/30/04 04/30/09 4.130% 250,000.00 1,749.51 Total * Standard & Poors = A, Moody's = A2 as of July 11, 2005 * *Represents the LAIF daily rate at 6/30/05. $ 10,440,346.50 85,025.21 • Description U.S. Treasury Bills U.S. Treasury Notes Federal Agency Issues: FICB FFCB FLB FHLB FNMA FHLMC Other * COSTA MESA SANITARY DISTRICT Summary of Policy Limitations as of June 30, 2005 Banker's Acceptances Certificates of Deposit Negotiable Certificates of Deposits �mmercial Paper Medium Term Corporate Notes Repurchase Agreements Reverse Repurchase Agreements LAW (Local Agency Investment Fund) Orange County Treasurer's Pool Money Market/Mutual Funds (Sweep Acct) Asset- Backed/Mortgage- Backed Securities Total % of portfolio maturing under one year % of portfolio maturing over one year Current % of Market Value as of 6130/05 Maximum % 0.00% UNLIMITED 0.00% UNLIMITED 0.00% 40% 10.39% 40% 0.00% 40% 30.88% 40% 4.81% 40% 28.86% 40% 0.00% 40% 0.00% 40% 0.00% UNLIMITED 0.00% 30% 0.00% 15% or 30% (1) 6.59% 30% 0.00% UNLIMITED 0.00% 10% of base 18.36% 40,000,000.00 0.00% 35% 0.09% 10% per fund (2) 0.00% 20% 100.00% 25.05% no less than 20% 74.95% 100.00% Current dollar weighted average maturity as of 3/31/05 is 0 days. Also limited to 20% in total. *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE ® COSTA MESA SORY DISTRICT Schedule of Investments by Instrument Type as of June 30, 2005 Medium Term Note/Texas Instruments Purchase Maturity Coupon Morgan Stanley %of Market % Description Broker/Dealer Date Date Rate Cost Portfolio Value Portfolio Comments State Treasurer's Pool LAIF n/a Continuous 2.856% $ 1,900,000.00 Federal Home Loan Notes & Bonds $ 1,900,000.00 POOL FHLMC 4.130% 250,000.00 1,900,000.00 18.20% 1,900,000.00 18.36% Money Market Mutual Fund Bank of New York n/a Continuous 2.490% 9,720.00 3.910% 9,720.00 SWEEP 497,968.75 9,720.00 0.09% 9,720.00 0.09% Medium Term Note/Texas Instruments Morgan Keegan 05/15/01 Federal Home Loan Mortgage Corp. Morgan Stanley 05/14/03 Federal Home Loan Mortgage Corp. Banc of America 05/14/03 Federal Home Loan Mortgage Corp. Wells Fargo 04/27/04 Federal Home Loan Notes & Bonds Morgan Keegan 07/22/03 Federal Home Loan Notes & Bonds Morgan Keegan 07/30/03 Federal Home Loan Notes & Bonds Morgan Keegan 04/30/04 Federal Home Loan Notes & Bonds Morgan Stanley 04/30/04 Federal National Mortgage Assoc. Morgan Keegan Federal Farm Credit Bank Citigroup Global Federal Farm Credit Bank Morgan Stanley Total Investments Standard & Poors =A, Moody's = A2 as of July 11, 2005 "Represents the LAIF daily rate at 6/30/05. 08/14/03 06/24/03 06/18/03 02/01/06 6.125% 681,095.25 682,350.75 Bullet 28.86% 07/22/08 681,095.25 6.52% 682,350.75 6.59% S &P= A/Moody's =A2' 05/14/07 3.250% 1,000,000.00 989,980.00 FHLMC 05/14/08 3.750% 1,000,000.00 993,960.00 FHLMC 04/27/09 4.125% 1,000,000.00 1,002,830.00 FHLMC FHLB FHLB FHLB FHLB FNMA FFCB FFCB 3,000,000.00 28.73% 2,986,770.00 28.86% 07/22/08 3.050% 1,499,531.25 1,463,437.50 07/30/08 3.400% 1,000,000.00 984,687.50 04/30/09 4.050% 500,000.00 497,968.75 04/30/09 4.130% 250,000.00 249,375.00 3,249,531.25 31.12% 3,195,468.75 30.88% 08/14/08 3.910% 500,000.00 497,968.75 500,000.00 4.79% 497,968.75 4.81% 09/24/07 2.625% 500,000.00 486,875.00 06/18/08 3.240% 600,000.00 588,562.50 1,100,000.00 10.54% 1,075,437.50 10.39% $ 10,440,346.50 100.00% $ 10,347,715.75 100.00% FHLB FHLB FHLB FHLB FNMA FFCB FFCB Broker /Dealer Local Agency Investment Fund Bank of New York Morgan Keegan Morgan Stanley Citigroup Global Markets Inc. Banc of America Morgan Stanley Morgan Keegan Morgan Keegan Morgan Keegan Wells Fargo Morgan Keegan Morgan Stanley Total Investment Portfolio Total Portfolio Weighted Avg Interest Rate Weighted Avg Yield to Maturity Weighted Avg Days to Maturity COSTA MESA SARY DISTRICT Investment Portfolio as of June 30, 2005 Investment Purchase Maturity Days to Coupon Yield to Type Date Date Maturity Rate Maturity Pool 1 2.856% ** 2.856% Sweep 1 2.490% 2.490% MTCN (TI) 05/15/01 02/01/06 216 6.125% 5.870% FHLMC 05/14/03 05/14/07 683 3.250% 3240% FFCB 06/24/03 09/24/07 816 2.625% 2.670% FHLMC 05/14/03 05/14/08 1,049 3.750% 3.740% FFCB 06/18/03 06/18/08 1,084 3.240% 3.260% FHLB 07/22/03 07/22/08 1,118 3.050% 3.090% FHLB 07/30/03 07/30/08 1,126 3.400% 3.410% FNMA 08/14/03 08/14/08 1,141 3.910% 3.900% FHLMC 04/27/04 04/27/09 1,397 4.125% 4.040% FHLB 04/30/04 04/30/09 1,400 4.050% 4.040% FHLB 04/30/04 04/30/09 1,400 4.130% 4.120% "Represents the LAIF daily rate at 6/30/05. 3.543% 3.525% 839 Days 2.30 Years • Cost $ 1,900,000.00 9,720.00 681, 095.25 1, 000, 000.00 500,000.00 1,000,000.00 600, 000.00 1,499,531.25 1,000,000.00 500,000.00 1,000,000.00 500, 000.00 250, 000.00 $ 10,440,346.50 ® COSTA MESA SA &ARY DISTRICT Schedule of Investments for all Maturities with Market Values as of June 30, 2005 Total Investments "Represents the LAIF daily rate at 6/30/05. $ 10,434,720.00 10,440,346.50 10,347,715.75 85,025.21 (92,630.75) Net Purchase Maturity Intuition Investment Coupon Market Accrued Gain/(Loss) Date Date Broker /Dealer Type Par Rate Cost Value Interest If Sold n/a Continuous LAIF POOL $ 1,900,000.00 2.856% 1,900,000.00 1,900,000.00 - - n/a Continuous Bank of New York SWEEP 9,720.00 2.490% 9,720.00 9,720.00 - - 05/15/01 02/01/06 Morgan Keegan MTCN (TI) 675,000.00 6.125% 681,095.25 682,350.75 17,226.56 1,255.50 05/14/03 05/14/07 Morgan Stanley FHLMC 1,000,000.00 3.250% 1,000,000.00 989,980.00 4,243.05 (10,020.00) 06/24/03 09/24/07 Citigroup Global Mkts Inc. FFCB 500,000.00 2.625% 500,000.00 486,875.00 3,536.46 (13,125.00) 05/14/03 05/14/08 Banc of America FHLMC 1,000,000.00 3.750% 1,000,000.00 993,960.00 4,895.83 (6,040.00) 06/18/03 06/18/08 Morgan Stanley FFCB 600,000.00 3.240% 600,000.00 588,562.50 702.00 (11,437.50) 07/22/03 07/22/08 Morgan Keegan FHLB 1,500,000.00 3.050% 1,499,531.25 1,463,437.50 20,206.25 (36,093.75) 07/30/03 07/30/08 Morgan Keegan FHLB 1,000,000.00 3.400% 1,000,000.00 984,687.50 14,261.11 (15,312.50) 08/14/03 08/14/08 Morgan Keegan FNMA 500,000.00 3.910% 500,000.00 497,968.75 7,439.86 (2,031.25) 04/27/04 04/27/09 Wells Fargo FHLMC 1,000,000.00 4.125% 1,000,000.00 1,002,830.00 7,333.33 2,830.00 04/30/04 04/30/09 Morgan Keegan FHLB 500,000.00 4.050% 500,000.00 497,968.75 3,431.25 (2,031.25) 04/30/04 04/30/09 Morgan Stanley FHLB 250,000.00 4.130% 250,000.00 249,375.00 1,749.51 (625.00) Total Investments "Represents the LAIF daily rate at 6/30/05. $ 10,434,720.00 10,440,346.50 10,347,715.75 85,025.21 (92,630.75) 0 0 0 Type of Purchase Maturity Coupon Investment Date Date Rate FFCB 06/18/03 06/18/08 3.240% FFCB 06/24/03 09/24/07 2.625% FHLMC 04/27/04 04/27/09 4.125% FHLB 07/22/03 07/22/08 3.050% FHLB 04/30/04 04/30/09 4.050% FHLB 04/30/04 04/30/09 4.130% FHLB 07/30/03 07/30/08 3.400% FNMA 08/14/03 08/14/08 3.910% FHLMC 05/14/03 05/14/07 3.250% FHLMC 05/14/03 05/14/08 3.750% COSTA MESA SANITARY DISTRICT Call Schedule as of June 30, 2005 Par Cost Call Features $ 600,000.00 600,000.00 Continuous Call w/ 7 days notice. 500,000.00 500,000.00 Continuous Call w/ 7 days notice. 1,000,000.00 1,000,000.00 Continuous Call w/ 5 days notice. 1,500,000.00 1,499,531.25 Callable 7/22/05 w/ 5 days notice. 500,000.00 500,000.00 Callable 7/30/05 w/ 5 days notice. 250,000.00 250,000.00 Callable 7/30/05 w/ 5 days notice. 1,000,000.00 1,000,000.00 Callable 7/30/05 w/ 5 days notice. 500,000.00 500,000.00 Callable 8/14/05 w/ 10 days notice. 1,000,000.00 1,000,000.00 Callable 8/14/05 w/ 5 days notice. 1,000,000.00 1,000,000.00 Callable 8/14/05 w/ 5 days notice. $ 7,850,000.00 7,849,531.25 0 -- 0 0 70%-( COSTA MESA SANITARY DISTRICT - MATURITIES DISTRIBUTION as of June 30, 2005 ---------------------------------------- 50% ' --------- - - - - -- % - - - - - -- 45:419 - - - - - -- ------------------------------ .ems--------- 30% 20.11% 18.29% ---------- - - - - -- - - 20% 9.58% - - -- 6:52°/5-- - - - -- - -- --- - - - - -- 0.00% 0% ..,,. . _ ._ .— ..,_ 1 -180 181 -365 1 -2 2 -3 3 -4 4 -5 Days Days Years Years Years Years % Rounded 5/4 Cost In Thousands 1 - 180 Days $ 1,910 181 - 365 Days 681 1 - 2 Years 1,000 2 - 3 Years 2,100 3 - 4 Years 4,749 4 - 5 Years - TOTAL $ 10,440 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% Costa Mesa Sanitary District Yield Curve Data as of June 30, 2005 0.00% i i I \ ° ° ° E ° I oI �o! 01 � I o- I �o I �o I o O o 2o Op O O 0 p � 0 0 j q '� I O \ \ x2 ( \2 'N' ,\, 4 y, , ,o �O o ' \2�\ 5 year T -Note 3 year T -Note 2 year T -Note 6 month T -Bill 3 month T -Bill -CMSD- monthly -LAIF- monthly OC Pool- monthly . �S�5ANI1gRf C .0 ST,9,VES,4 Q09qTWRT yc�'PpDRA►E�1�p Di �I' I S RCT ... an Independent Speciaf 1District Memorandum To: Board of Directors -01 From: Wendy H. Davis, Treasurer Date: July 11, 2005 Subject: PROPOSED CPI ADJUSTMENT — CR TRANSFER, INC. Per the District's contract with CR Transfer, Inc., the basic rate to CR Transfer is adjusted annually by an amount equal to the percentage change in the Consumer Price Index (CPI) for the trailing 12 -month period ending in May of each year. The attached compensation calculation reflects the basic rate increase, which is scheduled to take effect retroactive to Is July 1, 2005 based on the contract formula for determining annual rate increases with CR Transfer, Inc. Staff has calculated the 12 -month CPI factor as of May 2005 to be 4.24 %. The contract maximum annual increase is capped at 3.00 %. Since the actual CPI factor is greater than the contract maximum, the rate of 3.00% will be used. The basic rate increase based upon the CPI factor is $1.20 per ton. The landfill rate of $11.00 per ton remains unchanged since the diversion rate remains at 50 %. The net result of the increase in the basic rate is summarized below. The estimated total contract cost is $ 2,219,863.99 based upon this new rate and the revised tonnage estimates for FY 2005 -06. If you have any questions or need additional information do not hesitate to contact me directly at your convenience. Attachments <Protecting our community's health by providing sofidutaste andse -wer coffection senlres. costarnesasanitarydstrict. org IncreaseADecrease) 2005 -06 2004 -05 Amount Percent Basic rate $41.22 $40.02 $1.20 3.00% Landfill fee $11.00 $11.00 0.00 0.00% Transfer rate .$52.22 $51.02 $1.20 3.00% The estimated total contract cost is $ 2,219,863.99 based upon this new rate and the revised tonnage estimates for FY 2005 -06. If you have any questions or need additional information do not hesitate to contact me directly at your convenience. Attachments <Protecting our community's health by providing sofidutaste andse -wer coffection senlres. costarnesasanitarydstrict. org r1 L J • 0 COSTA MESA SANITARY DISTRICT Adopted Rate Calculation for CR Transfer, Inc. Fiscal Year 2005 -2006 Base Rate Calculation FY 2004 -05 Base Rate 40.02 Max CPI increase Cap of 3% 1.03% FY 2005 -06 per ton Base Rate 41.22 Base Rate per ton Increase = (41.22- 40.02)= 1.20 Actual Tonnage Actual Tonnage Total City of Costa Mesa Santa Ana Heights Tonnage June, 2004 3,547.97 279.32 3,827.29 July 2004 3,430.19 229.40 3,659.59 August 2004 3,349.40 240.55 3,589.95 September 2004 3,230.17 258.97 3,489.14 October 2004 3,051.76 231.43 3,283.19 November 2004 3,297.58 222.62 3,520.20 December 2004 3,163.09 269.84 3,432.93 January 2005 3,200.28 214.90 3,415.18 February 2005 2,824.44 197.26 3,021.70 March 2005 3,677.66 267.41 3,945.07 April 2005 3,288.67 234.50 3,523.17 May Projection 3,300.00 235.00 3,535.00 Total 39,361.21 2,881.20 42,242.41 Base Rate Calculation FY 2004 -05 Base Rate 40.02 Max CPI increase Cap of 3% 1.03% FY 2005 -06 per ton Base Rate 41.22 Base Rate per ton Increase = (41.22- 40.02)= 1.20 This card is available on the Internet on the day of publication at http : / /www.bls.00v /ro9 /pachist.htm. This card is also available on our Fax -On- Demand service. To obtain a copy call 415 - 975 -4567. When asked for a document number, enter 9100. Eleven prior months are also on the Fax -On- Demand system, to receive a copy of April 2005, enter 9104, March 2005, enter 9103, February 2005, enter 9102 January 2005 enter 9101 December 2004 enter 9112 November 2004 enter 9111 etc CONSUMER PRICE INDEXES - PACIFIC CITIES AND U. S. CITY AVERAGE May 2005 ALL ITEMS INDEXES (1982 -84 =100 unless otherwise noted) n - 1,uw,uuv popwauon anu over -- tstu = less than 1,suu,u00 population Dash ( -) = Not Available. Release date June 15, 2005. The next monthly and bi- monthly releases are scheduled for July 14, 2005. The next semi - annual releases are scheduled for release on August 16, 2005. Anchorage (907) 271 -2770 Honolulu (808) 541 -2808 Los Angeles (310) 235 -6884 Phoenix (480) 503 -9075 Portland (503) 326 -2081 San Diego (619) 557 -6538 San Francisco (415) 975 -4350 Seattle (206) 553 -0645 i nis cara is avanaoie on the day of release by electronic distribution. Just go to www.bis.aov /bls /list.htm and sign up for the free on -line delivery service. (aa For l questions, please contact us at BLSinfoSFBLS.GOV or (415) 975 -4350. All Urban Consumers (CPI -U) Urban Wage Earners and Clerical Workers (CPI -W) Percent Change Percent Change Year 1 Month Year 1 Month MONTHLY DATA Indexes Indexes ending ending ending ending May Apr. May Apr. May May May Apr. May Apr. May May 2004 2005 2005 2005 2005 2005 2004 2005 2005 2005 2005 2005 189.1 194.6 194.4 3.5 2.8 -0.1 184.7 190.2 190.0 3.7 2.9 -0.1 U. S. City Average .. ............................... ( 1967 = 100) ....... ............................... 566.4 582.9 582.4 - - - 550.2 566.4 566.0 - - - Los Angeles- Riverside - Orange Co....... 193.3 201.1 201.5 4.8 4.2 0.2 186.8 194.2 194.6 4.9 4.2 0.2 ( 1967= 100) ....... ............................... 571.0 594.3 595.3 - - - 552.0 574.0 575.2 - - - West ...................... ............................... 193.4 198.6 198.8 3.3 2.8 0.1 188.6 193.7 193.9 3.4 2.8 0.1 (Dec. 1977 = 100) ........................... 312.6 321.0 321.4 - - - 303.5 311.6 312.0 - - - West - A" ................ ............................... 195.9 201.3 201.5 3.4 2.9 01 189.6 194.9 195.2 3.6 3.0 0.2 (Dec. 1977 = 100) ........................... 319.4 328.2 328.7 - - - 306.9 315.5 316.0 -1 - - West- B /C' "(Dec. 1996= 100) ............... 118.2 121.4 121.3 3.1 2.6 -0.1 117.8 120.8 120.8 3.1 2.51 0.0 All Urban Consumers (CPI -U) Urban Wage Earners and Clerical Workers (CPI -W) Percent Change Percent Chan e BI- MONTHLY DATA Indexes Indexes Year 2 Months Year 2 Months en din ending ending ending Apr. Feb. Apr. Feb. Apr. Apr. Apr. Feb. Apr. Feb. Apr. Apr. 2004 2005 2005 2005 2005 2005 2004 2005 2005 2005 2005 2005 San Francisco - Oakland -San Jose......... 198.3 201.2 202.5 1.6 2.1 0.6 194.7 197.3 199.3 1.6 2.4 1.0 ( 1967= 100) ....... ............................... 609.6 618.5 622.6 - - - 593.0 600.9 606.9 - - - Seattle- Tacoma - Bremerton ................... 194.3 197.6 201.3 2.1 3.6 1.9 189.1 192.4 196.2 2.4 3.8 2.0 ( 1967 = 100) ....... ............................... 592.3 602.3 613.7 - - I - 560.8 570.5 581.9 - - - n - 1,uw,uuv popwauon anu over -- tstu = less than 1,suu,u00 population Dash ( -) = Not Available. Release date June 15, 2005. The next monthly and bi- monthly releases are scheduled for July 14, 2005. The next semi - annual releases are scheduled for release on August 16, 2005. Anchorage (907) 271 -2770 Honolulu (808) 541 -2808 Los Angeles (310) 235 -6884 Phoenix (480) 503 -9075 Portland (503) 326 -2081 San Diego (619) 557 -6538 San Francisco (415) 975 -4350 Seattle (206) 553 -0645 i nis cara is avanaoie on the day of release by electronic distribution. Just go to www.bis.aov /bls /list.htm and sign up for the free on -line delivery service. (aa For l questions, please contact us at BLSinfoSFBLS.GOV or (415) 975 -4350. COSTA 9WESA SAN19ART (DISTRICT ... an Independent Speciaf Distfict Memorandum To: Board of Directors From: Wendy H. Davis, Treasurer op Date: July 11, 2005 Subject: CPI ADJUSTMENT — COSTA MESA DISPOSAL Per the District's contract with Costa Mesa Disposal, the basic rate paid to Costa Mesa Disposal is adjusted annually by an amount equal to the percentage change in the Consumer Price Index (CPI) for the 12 -month period ending in May of each year. The attached calculation includes the rate increase, which is scheduled to take effect retroactive to July 1, 2005, based upon the contract with Costa Mesa Disposal. Staff has determined that the trailing 12 -month CPI factor as of May 2005 was 4.24 %. The maximum annual increase is contractually capped at 3.;00 %. Since the actual CPI factor of 4.24% is greater than the contract maximum, the rate of 3.00% will be used. The actual increase is $.2667 per occupancy. The District's new monthly rate per occupancy payable to Costa Mesa Disposal is as follows: 2004 -05 Trash rate per occupancy $8.8887 2005 -06 Rate. increase based on May, 2005 CPI .2667 2005 -06 Trash rate per occupancy effective 7/1/05 $9.1554 The estimated total contract cost is $ 2,334,617. This estimate is based upon the new per occupancy rate of $ 9.16 and the projected increase in the number of occupants to 21,250. If you have any questions or need additional information do not hesitate to contact me directly at your convenience. 0 Attachments 4'Wecting our community's health 6y providing solidwaste and sewer coffection services costamesasanitarydistrirt. org COSTA MESA DISPOSAL Adopted Trash Rate Calculation Fiscal Year 2005 -06 CPI Calculation Consumer Price Index May 2005* 201.5 Consumer Price Index May 2004* 193.3 Total Change in CPI Increase /(Decrease) ** 4.24% Base Rate Calculation: FY 2004 -05 Base Rate per Occupancy 8.8887 Max CPI increase Cap of 3% 1.03% FY 2005 -06 per Resident per month Trash Cost $ 9.1554 Estimated Residential Occupancy Rate for June 2005 21,250 Annual Residual Trash Budget = 9.1554 x 21,250 x 12 $ 2,334,617.06 * Source = Consumer Price Index for Los Angeles /Riverside /Orange County, California • * *Formula = Total Change in CPI Increase /(Decrease) _ (201.5- 193.3)/193.3 =4.24% • • • • COSTA MESA SANITARY DISTRICT TRASH RATE BREAKDOWN Fiscal Year 2005 -2006 Admin /Container Lease Cost Landfill Charge Trash Hauler Charge Recycling Charge Monthly Annual Single /Multi - Family Residence Trash Hauler Charge 9.16 109.86 Recycling Charge 7.23 86.72 Landfill Charge 1.93 23.14 Administration /Container Lease Cost 1.34 16.06 Total 19.65 235.79 This card is available on the Internet on the day of publication at http : / /www.bls.aov /ro9 /pachist.htm. This card is also available on our Fax -On- Demand service. To obtain a copy call 415 - 975 -4567. When asked for a document number, enter 9100. Eleven prior months are also on the Fax -On- Demand system, to receive a copy of April 2005, enter 9104, March 2005, enter 9103, February 2005, enter 9102, January 2005, enter 9101, December 2004, enter 9112, November 2004, enter 9111, etc. CONSUMER PRICE INDEXES PACIFIC CITIES AND U. S. CITY AVERAGE May 2005 ALL ITEMS INDEXES (1982 -84 =100 unless otherwise noted) * A = 1,500,000 population and over ** B/C = less than 1,500,000 population Dash ( -) = Not Available. Release date June 15, 2005. The next monthly and bi- monthly releases are scheduled for July 14, 2005. The next semi - annual releases are scheduled for release on August 16, 2005. Anchorage (907) 271 -2770 Los Angeles (310) 235 -6884 Portland (503) 326 -2081 San Francisco (415) 975 -4350 Honolulu (808) 541 -2808 Phoenix (480) 503 -9075 San Diego (619) 557 -6538 Seattle (206) 553 -0645 This card is available on the day of release by electronic distribution. Just go to www.bis.aov /bls /list.htm and sign up for the free on -line delivery service. For questions, please contact us at BLSinfoSF BLS.GOV or (415) 975 -4350. All Urban Consumers (CPI -U) Urban Wage Earners and Clerical Workers (CPI -W) Percent Change Percent Change Year 1 Month Year 1 Month MONTHLY DATA Indexes Indexes ending ending ending ending May Apr. May Apr. May May May Apr. May Apr. May May 2004 2005 2005 2005 2005 2005 2004 2005 2005 2005 2005 2005 189.1 194.6 194.4 3.5 2.8 -0.1 184.7 190.2 190.0 3.7 2.9 -0.1 U. S. City Average .. ............................... ( 1967= 100) ....... ............................... 566.4 582.9 582.4 - - - 550.2 566.4 566.0 - Los Angeles- Riverside - Orange Co....... 193.3 201.1 201.5 4.8 4.2 0.2 186.8 194.2 194.6 4.9 4.2 0.2 ( 1967= 100) ....... ............................... 571.0 594.3 595.3 - - - 552.0 574.0 575.2 West ...................... ............................... 193.4 198.6 198.8 3.3 2.8 0.1 188.6 193.7 193.9 3.4 2.8 01 (Dec. 1977 = 100) ........................... 312.6 321.0 321.4 - - - 303.5 311.6 312.0 - - - West - A* ................ ............................... 195.9 201.3 201.5 3.4 2.9 0.1 189.6 194.9 195.2 3.6 3.0 0.2 (Dec. 1977 = 100) ........................... 319.4 328.2 328.7 - - - 306.9 315.5 316.0 West- B /C* *(Dec. 1996 = 100) ............... 118.2 121.4 121.3 3.1 2.6 -0.1 117.8 120.8 120.8 3.1 2.5 0.0 All. Urban Consumers (CPI -U) Urban Wage Earners and Clerical Workers (CPI -W) Percent Change Percent Change Year 2 Months Year 2 Months BI- MONTHLY DATA Indexes Indexes ending ending ending ending Apr. Feb. Apr. Feb. Apr. Apr. Apr. Feb. Apr. Feb. Apr. Apr. 2004 2005 2005 2005 2005 2005 2004 2005 2005 2005 2005 2005 San Francisco - Oakland -San Jose......... 198.3 201.2 202.5 1.6 2.1 0.6 194.7 197.3 199.3 1.6 2.4 1.0 (1967= 100) ....... ............................... 609.6 618.5 622.6 - - - 593.0 600.9 606.9 - - - Seattle- Tacoma - Bremerton ................... 194.3 197.6 201.3 2.1 3.6 1.9 189.1 192.4 196.2 2.4 3.8 2.0 ( 1967 = 100) ....... ............................... 592.3 602.3 613.7 - - - 560.8 570.5 581.9 * A = 1,500,000 population and over ** B/C = less than 1,500,000 population Dash ( -) = Not Available. Release date June 15, 2005. The next monthly and bi- monthly releases are scheduled for July 14, 2005. The next semi - annual releases are scheduled for release on August 16, 2005. Anchorage (907) 271 -2770 Los Angeles (310) 235 -6884 Portland (503) 326 -2081 San Francisco (415) 975 -4350 Honolulu (808) 541 -2808 Phoenix (480) 503 -9075 San Diego (619) 557 -6538 Seattle (206) 553 -0645 This card is available on the day of release by electronic distribution. Just go to www.bis.aov /bls /list.htm and sign up for the free on -line delivery service. For questions, please contact us at BLSinfoSF BLS.GOV or (415) 975 -4350.