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Agenda Packets - Board - 2006-07-12Costa Mesa Sanitaq Dist-yjct ... an Independent Special District Greg Woodside Vice President Arlene Schafer Director Jim Ferryman President Art Perry Secretary Dan Worthington Director Regular Meeting - Wednesday, July 12, 2006 1. CALL TO ORDER — 6:00 .m. — 628 W. 19th Street Costa Mesa p , II. PLEDGE OF ALLEGIANCE — Director Schafer III. INVOCATION — Director Woodside IV. ROLL CALL V. 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 Meeting — June 5, 2006 2. Investment Oversight Committee Minutes — June 8, 2006 3. Regular Meeting — June 8, 2006 4. City /Districts Liaison Committee Meeting — June 16, 2006 5. Special Meeting — June 19, 2006 RECOMMENDED ACTION Protecting our community's Health by providing solid waste and sewer collection services. crosdca. Costa .N1.e�a Sanitay� .District July 12, 2006 AGENDA Page 2 RECOMMENDED ACTION Manager's Reports 6. Refunds No Refunds 7. Occupancy Report and payment to Costa Mesa Disposal — July 2006 Approve 8. Monthly Spill Report to Regional Water Quality Control Board (RWQCB) Receive & File 9. Minutes of Office Staff Meeting on June 22, 2006 re Personnel Issues Receive & File 10. Minutes of Safety /Loss Control Meeting on June 28, 2006 Receive & File Engineer's Reports 11. Project Status Report Receive & File Treasurer's Reports 12. Financial Reports as of May 31, 2006 Receive & File 13. Treasurer's Reports as of May 31, 2006 Receive & File ® 14. Warrant Register for the month of June 2006 in the amount of Ratify Payments t651,770.15 15. Directors' Compensation and Reimbursement of Expenses for the Approve Compensation Month of June 2006 & Ratify Expenses END OF CONSENT CALENDAR----------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Update on Rate Guarantee Provision for Master Agreement with CR &R Consider FY- 2006 -2007 �� LuS i ' �rF N£WMV District Yard 0(— Update ^ Y C. CMSD Strategic Plan 1. Year 2005/2006 Strategic Planning Action Items Receive & File 2. New District Headquarters a. Building and Grounds Ad Hoc Committee i. Update on Column Improv ents, Painting & Landscaping Accept Report Apr (l up- 6) clN 7- o— X ®1000-A Protecting our community's health by providing solid waste and sewer coffection services. www.crosdcagov Costa Mesa Sanitaq ,District July 12, 2006 AGENDA Page 3 ® RECOMMENDED ACTION D. Recycling Reports j e`/-1. Waste Diversion Report — June 2006 Receive & File E. ontract Payment to CR Transfer for Recycling Services and Disposal 1. Payment for June 2006 Services Ratify Subject to Verification of Diversion Report by Staff t F. Ordinance Enforcement Officer's Report Accept Report City of Costa Mesa EXPO — May 7, 2006 Accept Report City Comments on CMSD Proposed Trash and Sewer Rates Accept Report I. West Santa Ana Here? Reorganization to the City of Newport Beach Accept Report Application[�� 1. Clarification of Plan for Services Consider 2. Request for Support from City of Costa Mesa Consider 0 ('vtnp Lmi_ fotzn, £' p . Agreement with Mesa Consolidated Water District for Support Services Consider K. Recycling Committee — Monday, July 10, 2006 — 12:00 p.m., CMSD Board Room, 628 W. 19th Street, Costa Mesa (Directors Woodside and Schafer) 1. Recycling Committee Goals for 2005/2006 2. Universal Waste — Requirements Effective February 9, 2006 a. E -Waste Recycling Event — Saturday, June 17, 2006 3. Large Item Collection — June 12 thru August 26, 2006 4. Source Reduction IX. ENGINEER'S REPORTS A. Waste Discharge Requirements (WDR) 1. General Update B. Completion of Emergency Work — President Pumping Station ® C. Anniversary Lane Water Line — IRWD Update on Activities Accept Report Accept Report Accept Report Accept Report Accept Report Accept Report Accept Report Protecting our community's health by providing solid waste and sewer collection services. www.crosdca, Costa Mew Sanitaq District July 12, 2006 AGENDA Page 4 • RECOMMENDED ACTION D. Project #181 Newport Blvd. Sewer at 19th Street 1. Proposal to Begin Design Phase Consider X. TREASURER'S REPORTS A. Resolution No. 2006 -724 Adopting 2006 -2007 Statement of Accept Report Investment Policy XI. ATTORNEY'S REPORTS /A. Costa Mesa Disposal and CR Transfer Master Agreement Consider /B. Sewer Lateral Compliance Ordinance Accept Report "/C. Sewer Lateral Insurance Accept Report ✓D. AB 1234 — Expense Reimbursements & Per Diem — Receipts Accept Report i, 1t:D4Vi)0,SE C(YV4.V-O)a4 Zk-W ,-"v arEA-V-y and6; E. Summons — 185 E. Wilson, Richard Charles Astin, Jr. IN �ypg p lcrvo lt'� ,.IX Update NaFa6UC£, 4411G =C 41_�� Curbside HH 2006 -07 & 2007 -08 HHW Collection Agreement Approve & Execute oil. LOCAL MEETINGS (Includes Reports by all Directors Representing the District) A. Orange County Sanitation District (OCSD) — June 21, 2006 (President Ferryman) B. Santa Ana River Flood Protection Agency (SARFPA) Thursday, June 22, 2006 (Director Perry) C. Independent Special Districts of Orange County ( ISDOC) (Director Schafer) 1. ISDOC Quarterly Meeting —Thursday, June 29, 2006 11:30 a.m., OCSD Boardroom D. Local Agency Formation Commission (LAFCO) (Director Schafer) E. California Special Districts Association (CSDA) (Director Schafer) F. California Association of Sanitation Agencies (CASA) is 1. Annual Conference — August 9 -12, 2006, Monterey, CA G. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Accept Report Accept Report Accept Report Accept Report Accept Report Accept Report Accept Report Consider Attendance Report on Matters Pertaining to CMSD Protecting our community's health by providing solid waste and sewer co(fection services. www.crosdcagov Costa .1Vi,e,sa Sanitary District AGENDA • XIII. OLD BUSINESS XIV. NEW BUSINESS XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT C] • July 12, 2006 Page 5 RECOMMENDED ACTION Protecting our community's health by providing solid waste and sewer collection services. wrvw.crosdcagov 0 • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING June 5, 2006 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Greg Woodside, Art Perry Staff Present: Rob Harriers, Tom Fauth, Joan Revak, Denise Gilbert Director Woodside called the meeting to order at 12:00 p.m. RECYCLING COMMITTEE GOALS FOR 2005/2006 The Committee reviewed the 2005/2006 recycling goals. PRESENTATION OF CHECK TO BOY SCOUT TROUP FOR PARTICIPATION IN A RECYCLING PROJECT Staff continues attempting to contact the Boy Scout Troup to set up a date for receipt of their award check. UNIVERSAL WASTE - REQUIREMENTS EFFECTIVE FEBRUARY 9, 2006 Battery Recycling Mr. Fauth provided information from Curbside Inc. on their Small Battery Recycling Program that is designed to recycle the collected batteries. The program includes a leak proof five and one -half gallon container with a hole in the top for collecting the batteries. The bucket can hold 80 -100 batteries. When the container is full, the agency contacts Curbside for collection and a replacement container. Agencies pay after the batteries are collected and the entire cost for the program is $175.00 per bucket. The Committee will recommend to the Board of Directors participation in the program with buckets placed at CMSD headquarters, Estancia and Costa Mesa high schools. Protecting our community's health by providing solid waste and sewer collection sewices< crosdcagov Costa Mesa Sanitary District J 8 Minutes of Recycling Committee Meeting June 5, 2006 Page 2 • Recycling Event — Saturday, June 17, 2006 A U -Waste Recycling event with the City of Costa Mesa (CCM) is scheduled for Saturday, June 17, 2006 at the City Corporation Yard. HMR USA, Inc. will provide all labor and equipment and will transport trailers to run the event including removal of all material from the collection site the date of the event Staff will place ads in the Daily Pilot to publicize the event. PHARMACEUTICAL DISPOSAL Staff provided information on disposing of unwanted medications. Traditionally, they were disposed of by flushing down the toilet or a drain and, although this method of disposal prevents immediate accidental ingestion, it can cause pollution in wastewater which has been demonstrated to cause adverse effects to fish and other aquatic wildlife. When the water is eventually reused, it can also cause unintentional human exposure to chemicals in medications. Scientists continue to study the long -term health effects on marine life and humans. The Orange County Sanitation District recommends that trashing unwanted medicine is better than flushing. However, precautions mush be taken to ensure the safety of children and animals. Other agencies recommend the unwanted /unused medications be disposed of in the trash, following precautions to prevent accidental or intentional ingestion. LARGE ITEM COLLECTION -.TUNE 12 THRU AUGUST 26, 2006 Ms. Revak reported on the upcoming Large Item Collection Program. The 2006 program commences on June 12 and runs until August 26. Ms. Revak provided a copy of the ad in the Costa Mesa Community News & Recreation Review publicizing the event and the door hanger that is distributed to all residences two weeks prior to the pickup date. Dates for the large item collection were provided for each of the Directors. Ms. Revak reported the white goods are taken to Ecology in Santa Fe Springs and they currently pay $90 for 240 lbs. PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 12:44 p.m. Protecting our community's health by providing solid-waste and sewer coClection services. gov 0 L� 0 • Secretary Costa Mesa Sanitary District Minutes of Recycling Committee Meeting June 5, 2006 Pag e 3 President Protecting our community's health by providing solid waste and ,sewer collection services. crosdcagov • COSTA MESA SANITARY DISTRICT MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING June 8, 2006 CALL TO ORDER The meeting was called to order at 5:30 p.m. by the District Manager, Mr. Rob Harriers. ROLL CALL Committee Members Present: Vice President Greg Woodside (rotating committee member) Director Arlene Schafer (rotating committee member) Mr. Rob Harriers, Manager/ District Engineer Committee Members Absent: None Staff Members Present: Ms. Wendy Davis, Treasurer • Ms. Joan Revak, Board Secretary/Clerk of the District Ms. Sherry Kallab, Accountant NEW BUSINESS PUBLIC COMMENTS ADJOURNMENT Approved by: Reserve Balances Ms. Davis discussed the District's current reserve balances and the need to budget additional monies to meet the required 25 percent operating reserves as the budget increases. Also discussed was possibility of increasing the District's operating reserve requirement from 25 percent to perhaps 50 percent. There were no items discussed under public comments. The meeting adjourned at 5:58 p.m. Secretary, Costa Mesa Sanitary District Board of Directors • President, Costa Mesa Sanitary District Board of Directors 0 • t •�('�L' �' j COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 89 2006 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on June 8, 2006, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: President Ferryman called the meeting to order at 6:00 p.m. Director Worthington led the Pledge of Allegiance after reading of the oath of citizenship taken by new citizens to the United States. Vice President Woodside gave the invocation. James Ferryman, Greg Woodside, Arlene Schafer, Dan Worthington, Art Perry DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Wendy Davis, Treasurer; Sherry Kallab, Accountant; Denise Gilbert, Permit Processing Specialist; Karl Dulake, Maintenance Supervisor; Ron Shef, Code Enforcement Officer OTHERS PRESENT: None COSTA MESA SANITARY DISTRICT y+ : MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 8 JUNE 8, 2006 PAGE 2 . ............................... CONSENT CALENDAR . ............................... Director Schafer requested the Project Status Report be pulled from the Consent Calendar. Director Schafer motioned to approve the Consent Calendar as presented with the exception of the Project Status Report. Director Woodside seconded. Motion carried 4 -0. REPORTS MINUTE APPROVAL Minutes of Special Meeting — May 4, 2006 Minutes of Recycling Committee Meeting — May 8, 2006 Minutes of Regular Meeting — May 11, 2006 Minutes of Special Meeting — May 25, 2006 MANAGER'S REPORTS Refunds The Minutes of the Special Meeting of May 4, 2006, were approved as distributed. The Minutes of the Recycling Committee Meeting of May 8, 2006, were approved as distributed. The Minutes of the Regular Meeting of May 11, 2006, were approved as distributed. The Minutes of the Special Meeting of May 25, 2006, were approved as distributed. There were no refunds for the month of May 2006. Occupancy Report and The Trash Occupancy Count documented an Payment of $194,982.55 increase of 6 units for the occupancy report for solid to Costa Mesa Disposal — waste collection as of June 1, 2006. Therefore, the June 2006 total for June is 21,297. Board directed Staff to prepare a warrant for $194,982.55 to Costa Mesa Disposal on July 1, 2006, for June 2006 collection count of 21,297. Monthly Spill Report to The Monthly Spill Report to the Regional Water Regional Water Quality Quality Control Board (RWQCB) for May 2006 was Control Board (RWQCB) accepted as submitted. • • • 0 • ENGINEER'S REPORTS Project Status Report TREASURER'S REPORTS Financial Report as of April 30, 2006 Treasurer's Report as of April 30, 2006 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 PAGE 3 The Project. Status Report dated June 2006 was pulled for discussion by Director Schafer. The Financial Report as of April 30, 2006 was accepted as submitted. The Treasurer's Report as of April 30, 2006 was accepted as submitted. Warrant 2006 -12 for April Warrant Resolution #CMSD 2006 -12 was 2006 in the amount of approved, authorizing the President and Secretary $355,254.77 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 $355,254.77. ` Directors Expenses for the Director Compensation and Expense Month of May 2006 Reimbursement for the Month of May 2006 were approved and ratified as follows: Director Ferryman: $680.00 Director Perry: $510.00 Director Schafer: $1,020.00 +$23.58 Vice President Woodside: $510.00 Director Worthington: $1020.00 .......................... END OF CONSENT CALENDAR .......................... Director Schafer inquired as to the approximate completion date for the Bristol Street Pumping Station project. Mr. Hamers reported the District is in the process of determining an approximate cost with a not -to- exceed cap and estimated it will take an additional two months to get the agreement approved. Director Schafer inquired on the connection between the O.C. Fairgrounds and the Elden Pumping Station. Mr. Hamers reported the State has not approved the easement and rights -of -way documents. Mr. Hamers reported the construction is complete and a reminder letter was sent to the O.C. Fairgrounds to continue consideration of the easements. . Director Schafer motioned to approve the Project Status Report dated June 2006 as presented. Director Woodside seconded. Motion carried 4 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 PAGE 4 WRITTEN COMMUNICATIONS Ms. Revak reported the District received letter from Mr. Blake P. Anderson, ATS Communications, dated May 22, 2006. Mr. Anderson's letter informs the District of an opportunity to place cellular antennas on District property to generate income for the District. Mr. Hamers reported he declined the offer since the District does not own property suitable to host a cellular antenna. Director Worthington inquired as to whether the District could take advantage of the revenue stream from a cellular antenna once the District Yard has been purchased. Mr. Hamers reported the District could consider an antenna if a permit was approved by the City. Director Perry arrived at 6:10 p.m. Ms. Revak reported receiving a letter from Mr. Peer A. Swan, President, Irvine Ranch Water District, dated June 2, 2006. Mr. Swan is requesting support for re- election of John Withers and Charley Wilson to LAFCO special district seats. The item is on the agenda to be discussed later in the meeting. PUBLIC COMMENTS • There were no public attendees at the meeting, therefore, no public comments. MANAGER'S REPORTS RESOLUTION NO. 2006 -723 ADOPTING A BUDGET FOR THE FISCAL YEAR 2006 -2007 Ms. Davis presented three different budget proposals for the solid waste budget - fiscal year 2006 -07 to the Board: 8% Rate Increase An 8% rate increase on the existing annual rate of $239.41 or 19.95 per month would become $258.56 per year or $21.55 per month. This budget proposal includes a 3%-CPI adjustment for both the hauler and the recycling /disposal contracts. This proposal does not assume the sale of the-containers; therefore, the debt service payment is included. This proposal projects a $40,703 increase of revenues over expenditures. 5% Rate Increase A 5% rate increase on the existing annual rate of $239.41 or 19.95 per month would become $251.38 per year or $20.95 per month. This budget proposal does not include a 3% CPI adjustment for both the hauler and the recycling /disposal contracts. This proposal also does not assume the V COSTA MESA SANITARY DISTRICT .' . MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 <k.._.., PAGE 5 sale of the containers, therefore, the debt service payment is included. This proposal projects a $15,309 increase of revenues over expenditures. Freeze Rate A 0% rate increase on the existing annual rate of $239.41 or $19.95 per month. This budget proposal does not include a 3% CPI adjustment for' both the hauler and the recycling /disposal contracts. This proposal also does not assume the sale of the containers; therefore, the debt service payment is included. This proposal projects $254,000 of expenditures over revenues which would be made -up by CR &R. Ms. Davis provided a brief overview of each option. A letter was sent to each Board member in preparation for the meeting with CR &R, on June 14th. An additional meeting will be held on June 19th. Discussion was held regarding the various options, including going out to bid in an effort to lower the rates. Mr. Harriers recommended adopting a budget based on a worst -case scenario. Director Perry motioned to approve a budget increase of 8 %. Director . Schafer seconded. Motion carried 5 -0. Ms. Davis presented the proposed Liquid Waste Budgets - Fiscal Year 2006- 07. The liquid waste fund proposed budget reflects a 20% increase in sewer rates for the upcoming 2006 -07 Fiscal Year. This increase provides only $800,000 for Capital Improvement Projects not including the Sewer Maintenance Program which is approximately $933,000. The Fixture Fees fund proposed budget reflects no increase in projected revenues over the prior fiscal year and no appropriations are requested at this time. Director Worthington inquired as to whether the fixture fees will be reviewed and possibly increased. Ms. Davis responded the fixture fees will be reviewed in November 2006. Director Woodside motioned to adopt Resolution No. 2006 -723, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING A BUDGET FOR THE FISCAL YEAR 2006 -07, approving an 8% budget increase for the Solid Waste Budget and a 20% budget increase for the Liquid Waste Budget. Director Perry ® seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT , MINUTES OF BOARD OF DIRECTORS REGULAR MEETING a JUNE 8, 2006 PAGE 6 OFFER BY CR&R TO GUARANTEE FY- 2005 -2006 TRASH COLLECTION RATE FOR FY- 2006 -2007 In an attempt to provide the residents of Costa Mesa with a competitive rate, the Costa Mesa Sanitary District is negotiating with CR &R to voluntarily reduce their costs. A review of the overall trash collection rate shows that the rate has climbed from mid level in year 2000 to the highest rate in Orange County in the 2005 -2006 year. Mr. Hamers opened discussion of the CR &R guarantee for the FY- 2006 -2007 collection rate and the options available to the Board. Director Perry requested explanation regarding the guarantee that the District rate will remain at or below the second highest trash collection rate of the cities collecting solid waste in Orange County. Ms. Davis expressed concern about the feasibility of the guarantee. Mr. Burns expressed concern about the lack of clarity of the language and suggested modification regarding the second highest rate and the 3% cap. Discussion was held regarding the transfer of container ownership. • Mr. Hamers suggested having two Directors attend the meeting with CR &R on June 14, 2006. President Ferryman and Director Schafer will be in attendance at the June 14 meeting. Ms. Davis suggested the proposed variable rate program be based on two 60 gallon containers. Mr. Hamers explained there is not enough time to perform the trash container survey to build it into the yearly billing at the present time. DISTRICT YARD UPDATE POTENTIAL PURCHASE OF PROPERTY AT WILSON AND FAIRVIEW Mr. Fauth reported he spoke with Mr. Don Gregg who verified the seller has no additional offers on the two vacant lots at Wilson and Fairview. Mr. Gregg offered to assist the seller in structuring the sales agreement to sell the developed property contingent upon the District purchasing the two vacant lots, an appraisal, and a CUP from the City. Mr. Fauth reported an appraisal would cost approximately $2,500 and take • about two weeks. COSTA MESA SANITARY DISTRICT -; ►+`':. MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 PAGE 7 Director Ferryman reported he was made aware of an offer on the vacant property made just last week. Mr. Burns suggested writing up an offer amount subject to an appraisal to justify the cost of the property for the District. Mr. Hamers envisioned obtaining the appraisal to assist. the Board in determining what the value of the property should be. Ms. Davis reminded Staff that at the May 25, 2006 Special Meeting the Board determined they were not comfortable with the purchase of the property. Staff was instructed to direct realtor Don Gregg to continue searching for appropriate property for the District yard. Board directed Staff to contact Mr. Gregg and let him know the Board .is not going to pursue the Wilson and Fairview property. CMSD STRATEGIC PLAN YEAR 2005/2006 STRATEGIC PLANNING ACTION ITEMS Director Schafer suggested adding the corporation yard for maintenance and storage to the Strategic Plan. NEW DISTRICT HEADQUARTERS BUILDING AND GROUNDS AD HOC COMMITTEE UPDATE ON ROOF, GUTTERS, AND COLUMN IMPROVEMENTS Mr. Fauth reported the roof and gutters have been completed and the current focus is on column improvements, painting, and landscape. Ms. Gilbert has engaged contractors to provide bids on the replacement of the columns. Mr. Fauth reported painting and landscaping will be next on the improvement agenda once the columns have been completed. RECYCLING REPORTS WASTE DIVERSION REPORT — APRIL 2006 Ms. Revak presented the Waste Diversion Reports for May 2006 showing a 50.44% diversion rate. Director Schafer motioned to approve the Waste Diversion Report. Director Perry seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT . MINUTES OF BOARD OF DIRECTORS REGULAR MEETING ' JUNE 8, 2006 PAGE 8 • CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR MAY 2006 SERVICES Ms. Revak presented the invoices for May 2006 recycling services and disposal. Director Perry motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of May 2006 in the amount of $196,452.68. Director Schafer seconded. Motion carried 5 -0. Director Perry motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of May 2006 in the amount of $12,871.19. Director Schafer seconded. Motion carried 5 -0. STANDARDIZED TRASH CONTAINER PROGRAM REPORTS Mr. Shef reported he is still seeing many containers that have not been put away after trash collection day. Director Schafer reported noticing numerous containers with their lids open after having been emptied and put back down. Mr. Shef reported the situation with the Santa Isabel residence that had been putting C & D materials into the containers has been resolved. Normal pickup has resumed and the site is checked weekly by the Ordinance Enforcement Officer. Mr. Fauth presented the Standardized Container Inventory/Status Update and reported no additional containers would be purchased in the immediate future. There are currently 47,472 containers in the District. The Board determined the Standardized Container Inventory/Status Update report could be placed on a freeze status at this time. AGREEMENT WITH MESA CONSOLIDATED WATER DISTRICT FOR SUPPORT SERVICES Mr. Hamers reported he and Mr. Fauth have been meeting with Mesa Consolidated Water District representatives regarding the District's hydrant water usage. In a previous arrangement, Mesa Consolidated provided hydrant water to the City of Costa Mesa and through that agreement, to the Costa Mesa Sanitary District. Now that the District is no longer a part of that arrangement with the City, Mr. Hamers has been COSTA MESA SANITARY DISTRICT �j MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 ® `>x,•':- "•. PAGE 9 working with MCWD on a cooperative agreement between Mesa Consolidated Water District and the Costa Mesa Sanitary District. Mr. Hamers estimated the District would use approximately 6,000 gallons of water a day in the Vactor trucks. This equates to $4,000 per year of water. Mesa Consolidated stated they would provide the $4,000 of water per year in exchange for services from the District to MCWD. Mr. Hamers proposed the following services to MCWD in exchange for the water usage: ❑ Provide no -fee sewer service to MCWD at all MCWD sites; ❑ Vactor MCWD wash rack monthly or as needed at the Placentia Avenue site; ❑ Hydrant Flush support as needed when vehicles are available; ❑ Emergency response and support as requested; ❑ Registered Civil Engineers on CMSD Staff to assist as needed; ❑ Other services that may become available. Mr. Burns explained the District would not be actually waiving the sewer service fees to MCWD, but changing the compensation received for them. Director Worthington. motioned to approve the agreement with Mesa Consolidated Water District. Director Perry seconded the motion. 'Motion carried 5 -0. RECYCLING COMMITTEE — MONDAY, JUNE 5, 2006 - 12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA, (DIRECTORS WOODSIDE AND PERRY) RECYCLING COMMITTEE GOALS FOR 2005/2006 Vice President Woodside presented a handout depicting a matrix for CMSD Public Outreach Expenditures from May 20, 2001 to May 24, 2006. The report shows approximately $1,952.79 has been spent on public outreach expenditures to date. Director Schafer requested a brief overview of what the District does for the Master Gardener Program at the OC Fairgrounds. Mr. Fauth explained the District presents a composting program for students in the Master Gardener program. Vice President Woodside reported the Committee is planning to distribute five battery buckets throughout the City for collection of used batteries. COSTA MESA SANITARY DISTRICT ee MINUTES OF BOARD OF DIRECTORS REGULAR MEETING v JUNE 8, 2006 PAGE 10 • Mr. Fauth spoke with Mr. Tim Marsh, Administrative Director of Facilities Support Services, Newport -Mesa Unified School District, who reported the schools currently have programs in place at the schools. Mr. Fauth will find out if the program currently in place at the schools is for public collection or just the used batteries generated by the school. Mr. Fauth reported speaking with Mr. Greg Stewart from the fire department who expressed an interest in hosting a battery collection site to coincide with their smoke detector battery replacement program. The battery bucket would be placed at the Fire Prevention Bureau on Royal Palm. Director Schafer requested Staff work with CR &R to have recycling containers placed at the next Lions Club Fish Fry event. UNIVERSAL WASTE - REQUIREMENTS EFFECTIVE FEBRUARY 9, 2006 E -WASTE RECYCLING EVENT -SATURDAY, JUNE 17, 2006 Vice President Woodside reminded Board members the E -Waste Recycling Event will be held on Saturday, June 17, 2006, in the Costa Mesa Corporation Yard from 8:00 a.m. to 1:00 p.m. HMR will be distributing the flyers by hand. Mr. Fauth distributed a sample of the ad to be placed in the Daily Pilot newspaper and advised a public service announcement will appear the day of the event. Director Perry inquired whether Mr. Fauth was able to notify Newport -Mesa Unified School District about the event. Mr. Fauth spoke with Mr. Marsh and provided information about the E -Waste Event. PHARMACEUTICAL DISPOSAL Vice President Woodside presented the pharmaceutical disposal information packet for the Board's perusal. LARGE ITEM COLLECTION - JUNE 12 THRU AUGUST 26, 2006 The Large Item Collection Program will commence on June 12, 2006 and run until August 26, 2006. 9 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 PAGE 11 ENGINEER'S REPORTS WASTE DISCHARGE REQUIREMENTS — (WDR) GENERAL UPDATE Mr. Hamers reported the State Water Discharge Requirements are in force and the Costa Mesa Sanitary District will be enrolling in the program. Mr. Hamers is attending Steering Committee meetings and meetings with regional board members. REPORT ON EMERGENCY WORK — PRESIDENT PUMPING STATION Mr. Hamers reported the President Pumping Station work is still ongoing. The new electrical control panel has been put in and the pumps have been delivered to the contractor who will begin working on installation.. The emergency will be over when the new pumps are installed and operational. ® Director Perry motioned approve the continued emergency work on the President Pumping Station repair. Director Schafer seconded. Motion carried 5 -0. • ANNIVERSARY LANE WATER LINE — IRWD Mr. Hamers provided a copy of a letter from Shu -Fang Orr, P.E., District Engineer, Santa Ana District, Department of Health Services, to Mr. Paul Jones II, General Manager, Irvine Ranch Water District dated May 9, 2006 stating the water line at Anniversary Lane does not comply with the departments Guidance Criteria for the Separation of Water Mains and Non - potable Pipelines (Guidance Criteria). Mr. Hamers also provided a copy of the letter to Ms. Shu -Fang Orr, P.E. from Mr. Hamers dated May 31, 2006 which referenced a. phone conversation of May 31, 2006 where he was advised of the IRWD's intentions not to relocate their water line at Anniversary Lane. In his response letter, Mr. Hamers requests the Department of Health Services reconsider allowing the water line to remain as planned. Mr. Hamers will contact the IRWD general manager to ensure future projects will avoid conflict as suggested by Vice President Woodside. COSTA MESA SANITARY DISTRICT a a. = MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 PAGE 12 TREASURER'S REPORTS INVESTMENT OVERSIGHT COMMITTEE MEETING —.TUNE 8, 2006 (DIRECTORS WOODSIDE AND SCHAFER) Ms. Davis reported the Investment Oversight Committee met on June 8, 2006, and reported they discussed operating reserve balances. SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) INVOICE FOR 2006-2007 PROPERTY AND LIABILITY PROGRAM RENEWAL Ms. Davis presented the SDRMA renewal contribution invoice for program year 2006 -2007. No modifications will be made in the District's coverage. The invoice for $65,048.70 is due before July 14, 2006. President Ferryman reported he another company. Discussion was derived from membership coverag e the policy renewal is due. would like to receive a quote from held regarding the additional benefits with SDRMA and the timing of when Director Perry motioned to approve payment of $65,048.70 to SDRMA, contingent upon Ms. Davis receiving an additional quote from another company and the discretion of Ms. Davis to determine which policy would be best for the District. Director Schafer seconded. Motion carried 5 -0. ATTORNEY'S REPORT COSTA MESA DISPOSAL AND CR TRANSFER MASTER AGREEMENT Mr. Burns will discuss the agreement with Costa Mesa Disposal and CR Transfer with Ms. Davis and Mr. Hamers. Mr. Hamers suggested Mr. Burns attend the next meeting on June 14, 2006. SEWER LATERAL COMPLIANCE ORDINANCE Mr. Burns reported he is gathering ordinances regarding sewer lateral inspection and provided an interim report on the ordinances evaluated to date. Mr. Burns will bring options to the Board for review. President Ferryman suggested the District consider pursuing a comprehensive sewer lateral insurance program. r • x'; r• y COSTA MESA SANITARY DISTRICT ,j MINUTES OF BOARD OF DIRECTORS REGULAR MEETING - `• 'an JUNE 8, 2006 - = PAGE 13 Mr. Burns reported the existing ordinances reviewed so far are triggered upon a sale of the property. Director Worthington suggested a backflow preventer be installed during any major repair to a lateral. Mr. Hamers will investigate insurance programs for laterals. SUMMONS — 185 E. WILSON, RICHARD CHARLES ASTIN, JR. Mr. Hamers reported the lawsuit was a, bit confusing so he sent inspectors to the location to assist in determining the cause of the lateral backup problems. Mr. Hamers reported a storm drain contractor installed a line underneath the existing lateral and did not remodel the lateral. The failure of the lateral took 40 years to occur. There was an additional problem with a storm water pipe. Mr. Burns recommended the lawsuit be referred to SDRMA for investigation. Director Perry motioned to refer the summons, Case No. 06CC05755, Richard Charles Astin, Jr., and Rosanna Locke vs. City of Costa Mesa, a governmental entity, Costa Mesa Sanitary District, a governmental entity, and DOES 1 through 10, inclusive to SDRMA. Vice President Woodside seconded. Motion carried 5 -0. AB 1234 — EXPENSE REIMBURSEMENTS & PER DIEM Mr. Burns provided a brief review of AB 1234 for the Board. Mr. Burns reported receipts must be produced whether you adopt the IRS rates or go with alternate rates. Ms. Davis will provide her report at the August 2006 meeting. RESOLUTION NO. 2006 -722 ENDORSING PROPOSITION 1 E AND URGING STATEWIDE SUPPORT FOR THE MEASURE ON THE NOVEMBER 7, 2006 GENERAL ELECTION BALLOT Mr. Burns presented Resolution No. 2006 -722, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ENDORSING PROPOSITION 1E AND URGING STATEWIDE SUPPORT FOR THE MEASURE ON THE NOVEMBER 7, 2006 GENERAL ELECTION BALLOT. Director Perry motioned to adopt Resolution No. 2006 -722. Director Schafer seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 6 JUNE 8, 2006 PAGE 14 LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT (OCSD) — MAY 24, 2006 (PRESIDENT FERRYMAN) President Ferryman attended the May 24, 2006, OCSD meeting and reported OCSD set their rate at 9.8 percent increase for residential. President Ferryman was nominated for Chairman of OCSD. SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) THURSDAY, MAY 25, 2006 (DIRECTOR PERRY) Director Perry attended the Santa Ana River Flood Protection Agency meeting on May 25, 2006 and reported the following: • The 2006 -2007 budget was $200 less than last year. • SARFPA may be dissolving within the next year. • Guy Carrozzo will be added to the executive committee in place of Richard Jones, due to attendance. A resolution in support of the state bond program was passed. • ■ The repair of Seven Oaks Dam will begin in July and is scheduled to be completed by November 1, 2006. ■ Conservation study - feasibility study at Seven Oaks ■ Water quality study on the impacts of the quality of water downstream from Seven Oaks • Status of Prado Dam - construction should be completed by June 2007 • Trips to Prado or Seven Oaks if any Board members are interested ■ SARI line conditions - County wants to borrow money to realign the line. A potential 300 million dollar project. ■ Flyers were distributed to the Board INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER) Director Schafer attended the June 6, 2006 ISDOC Executive Board and reported legislation bills were discussed: • Legislation S131 317, Edison bill (oppose) • AB2197, ability to hire outside contractors bill (oppose) • SB1206 and 1209, eminent domain bill (oppose) • AB2951 Goldberg bill (good for Special Districts, gives them the ability to raise fees) 0 COSTA MESA SANITARY DISTRICT a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING �ry JUNE 8, 2006 "i PAGE 15 ISDOC QUARTERLY MEETING —THURSDAY, JUNE 29,200611:30 A.M. OCSD BOARDROOM There will be a Quarterly Meeting for ISDOC on Thursday, June 29, 2006, 11:30, in the OCSD Boardroom. Directors attending the ISDOC Quarterly meeting will be Directors Ferryman, Schafer, Worthington, and Perry. LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER There was no LAFCO meeting held in June. Director Schafer reported Costa Mesa and Newport Beach will be on the agenda for the July 12, 2006 and anticipated a large attendance at the meeting. LETTER OF ENDORSEMENT AND SUPPORT FOR COMMISSIONERS JOHN WITHERS AND CHARLEY WILSON TO THE REGULAR AND ALTERNATE SPECIAL DISTRICT SEATS, RESPECTIVELY Director Schafer motioned to provide a letter of endorsement support for Commissioners John Withers and Charley Wilson to the Regular and Alternate Special District Seats for LAFCO, respectively. President Ferryman will be voting on behalf of the District at the ISDOC Quarterly Meeting on June 29, 2006, and Director Art Perry named as the authorized alternate. Director Perry seconded. Motion carried 5 -0. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER Director Schafer reported she participated in numerous conference calls for the CSDA. Neil Jeffrey was approved as CEO. CSDA CALL FOR NOMINATIONS Director Schafer motioned to nominate Jo MacKenzie, Region 6, for the available CSDA seat. Director Woodside seconded. Motion carried 5 -0. The deadline for nominations is Thursday, July 27, 2006. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) ANNUAL CONFERENCE — AUGUST 9-12,2006, MONTEREY, CA Ms. Revak distributed a handout for the Annual CASA Conference, August 9 -12, 2006, in Monterey, California. Directors Ferryman, Schafer, Worthington, and Perry plan on attending. COSTA MESA SANITARY DISTRICT .' MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 PAGE 16 • OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 WACO Director Schafer attended the WACO meeting of June 3, 2006, and reported there were two different presentations. The first presentation was on the Delta Levee Stability in Northern California and Strategies for Reducing the Risks. Denis Majors, Program Manager, Metropolitan Water District of Southern California was the speaker. The second program was a panel discussion on Delta Emergency Preparedness. The panel included Peer Swan, President of IRWD, Deven Upadhyay, Principal Analyst, MWD of OC and Dennis Majors. CHAMBER OF COMMERCE Director Schafer attended the May 2, 2006 Chamber of Commerce meeting and reported they discussed bills, new legislation, and representatives. There was a discussion on SB1542 as amended (Motor Vehicles). • OCCOG Director Schafer attended the May 25, 2006 meeting and reported they had a closed session on Special Districts. President Ferryman reported Michael Gold, formerly with OCCOG, has joined the Orange County Sanitation District as a legislative analyst. OTCA Director Schafer attended the May 16, 2006 meeting which featured a presentation on Measure M updates, South County MIS Strategy draft work plan, and work on City Council agendas all over Orange County to have representation for Measure M. OLD BUSINESS There was no old business discussed. NEW BUSINESS • There was no new business discussed. ,. COSTA MESA SANITARY DISTRICT " e+ MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 8, 2006 • PAGE 17 0 ORAL COMMUNICATIONS AND DIRECTOR COMMENTS President Ferryman reported the Lions Club Fish Fry was very successful. John Moorlach was elected as Orange County Supervisor. Mr. Fauth reported Mr. Dulake will be flying out to Chicago to pick up the vactor truck and drive it back. Vice President Woodside was recently in Georgia and commented the rate for one trash container is $31 per month. ADJOURNMENT At 8:17 p.m., President Ferryman adjourned the meeting. SECRETARY PRESIDENT • • • AKAjesa Consolidated mater District CITY /DISTRICTS LIAISON COMMITTEE MEETING MINUTES FRIDAY, June 16, 2006 7:30 a.m. COSTA MESA CITY HALL 5T" FLOOR CONFERENCE ROOM 77 Fair Drive Costa Mesa, California 92626 Mesa Committee Members: James F. Atkinson, 1 st Vice President Trudy Ohlig -Hall, Vice President Diana M. Leach, General Manager City Committee Members: Allan Mansoor, Mayor Allan Roeder, City Manager CMSD Committee Members: James Ferryman, President Arlene Schafer, Director Rob Harriers, Manager /District Engineer Tom Fauth, Assistant Manager Discussion was held on the following items: 1. Sewer Lateral Compliance Policy (CMSD) Mr. Harriers explained the Costa Mesa Sanitary District is reviewing the ordinances adopted by Stege Sanitary District and others that requires the seller of property to have the existing sewer lateral videotaped and found to be in compliance by the sewer agency prior to sale of the property. Under the policy, the seller is required to perform repairs such as removing tree roots and fixing broken pipe prior to the sale. CITY /DISTRICTS LIAISON COMMITTEE MEETING June 16, 2006 MINUTES Page 2 • 2. Recycling Update and Opportunities for Recycling Among the Three Agencies (CMSD) Director Schafer suggested there are opportunities for the three agencies to work together in recycling programs to better serve the residents and businesses in the City of Costa Mesa. Mr. Fauth described the forthcoming electronic waste recycling event on June 17, 2006 at the City Corporate Yard that is a combined effort by the City and the Sanitary District. Mr. Fauth also described the used battery drop off program being implemented by the Sanitary District. Mr. Roeder added that the City runs all the Sanitary District's outreach announcements on its cable television station. 3. Opportunities for Decreasing CMSD Trash Collection Rates (City) Mr. Roder had read the Sanitary District's minutes regarding this issue and requested an update. Mr. Harriers explained that the Sanitary District and its trash hauler have met and are devising plans to lower the trash collection rate. Director Ferryman and Mr. Hamers explained that comparing trash collection rates is extremely difficult due to various levels of service. Twenty two of the cities in Orange County do not recycle 50% of their trash as required, some agencies do not add in administrative charges into their quoted rate while others keep a low residential rate that is offset by a higher commercial • rate. Some agencies require the resident to sort the trash instead of having it sorted at a material recovery facility. 4. Use of Technology (MCWD) Director Ohlig -Hall requested an update from the City and Sanitary District as to their level of use of GIS or other computer technology. Mr. Roeder described the City's GIS system and how the new master plan of storm drains has been added to the system. Mr. Roeder volunteered to have a City staff member attend the next Liaison Committee meeting and give a demonstration of the City's GIS system. Mr. Roeder explained that the on -going data entry and program management costs are substantial. Director Atkinson stated Mesa Water has a portion of their water atlas maps scanned while Mr. Harriers mentioned that for the most part the Sanitary District has not converted to GIS due to the substantial upfront and on -going costs. 5. Santa Ana Heights and Banning Ranch Annexations (Mesa) At Mesa's request, Mr. Roeder provided a status update on the City's efforts to work through the Santa Ana Heights and Banning Ranch sphere of influence and annexation issues with the City of Newport Beach and the Orange County LAFCO. • CITY /DISTRICTS LIAISON COMMITTEE MEETING MINUTES • 6. Sidewalk on Fairview and South Coast Drive (Mesa) June 16, 2006 Page 3 Director Atkinson mentioned a section of City sidewalk near this intersection has never been constructed, thereby causing pedestrian circulation problems. Mr. Roeder explained the Missing Link program and how priorities are judged; proximity to a school, etc., and stated he would certainly review this area. The next meeting will be held on September 22, 2006 at 7:30 a.m. at the Costa Mesa Sanitary District. Public Comments There were no public comments. The meeting was adjourned at 9:30 a.m. CJ Arthur Perry, Secretary Costa Mesa Sanitary District 0 James Ferryman, President Costa Mesa Sanitary District 0 • COSTA MESA SANITARY DISTRICT MINUTES OF SPECIAL MEETING JUNE 199 2006 The Costa Mesa Sanitary District held a Special Meeting at 6:00 p. m. on June 19, 2006 at 628 W. 19th Street, Costa Mesa. Directors Present: James, Ferryman, Greg Woodside, Art Perry, Arlene Schafer, Dan Worthington Staff Present: Robin B. Hamers, Manager /District Engineer; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Sherry Kallab, Accountant; Wendy Davis, Treasurer; Alan Burns, General Counsel Others Present David Ronnenberg President, CR &R 11292 Western Avenue Stanton, CA 90680 Joyce Amato Chief Financial Officer CR &R George Lazaruk Vice President, CR &R Contract Administration Dean Rufffridge Senior Vice President, Solid Waste CR &R President Ferryman called the meeting to order at 6:00 p. m. Director Perry led the Pledge of Allegiance. Director Woodside gave the Invocation. TRASH COLLECTION PROGRAM PRELIMINARY 2006 -2007 TRASH COLLECTION PROGRAM BUDGET Discussion was held on finalizing the Agreement between the Costa Mesa Sanitary District and CR &R and the following negotiating points: 1 J Minutes of Special Meeting June 19, 2006 Page 2 • 1. CR Transfer and Costa Mesa Disposal agree to forgo their 3% increases this year in order to freeze their rates for the 2006 -2007 fiscal year. 2. In subsequent years, CR &R agrees not to ask for an increase unless the granting of such an increase will not increase the District's overall trash collection rate to its residents beyond the "second highest" of all Orange County cities with the goal to be the Orange County "average ". 3. The "rates" used for the calculations shall be those established in the CMSD spreadsheet survey, as the same may be modified from year to year, with calls made to those agencies to anticipate their increases for the forthcoming year. 4. CR &R's rates shall be the following: • Trash pickup for $9.1554 per resident per month • Recycling at the rate of $41.22 per ton, plus landfill charge of $11 /ton 5. Thereafter increases may be allowed in future years based on CPI increases subject to the further limitation that CPI increases shall be capped at 3% per • year with a cumulative cap of 16% over six years. 6. CR &R agrees to buy all of the existing trash containers from the District at the agreed upon price of $2.2 million, which was the initial purchase plus $210,000 for additional purchased containers less average depreciation based on years of service of the existing cans which the parties have agreed upon equals $615,000 for a total price of $1,795,000. 7. Said payment shall be made to District by July 17, 2006 and District will hold said funds in trust until the District can deliver ownership of the containers to CR &R. 8. District to transfer title to containers and all warranties to CR &R. 9. CR &R to provide District with a surety bond or other security (including lien rights) that it will provide the containers to District's customers for at least the next ten years. 10. CR &R shall take over all container management and shall provide replacement containers at a charge equal to the cost of the container. 11. District shall implement a variable container charge in addition to its basic service that provides two containers for a base rate to be collected on the • annual assessment roll. Each customer shall, therefore, be entitled to the • i Minutes of Special Meeting June 19, 2006 Page 3 collection of two containers as consideration for payment of their annual charge on the assessment roll. Over and above said amount, CR &R may charge, with District's consent, a rate of $8 per month for each additional container. Billing and collection for said additional containers shall be provided by CR &R. Revenue generated by said extra charge shall be the District's sole property and shall be used at the discretion of the District. The first year, CR &R is entitled to 90% of the revenue with the District retaining 10 %. The basic level of service will now be defined as two 60 gallon containers with a charge for third container. Anyone who currently has two 90 gallon containers will be "grandfathered" in and will not have a rate adjustment until their service is modified. Anyone starting new service will have two 60 gallon containers. An independent bonded third party billing service may be utilized for billing at District's discretion. 12. The Board agreed they would not give notice for the first four years (except for cause), in effect giving a 10 year initial term that would revert to a six year evergreen after four years passed. 13. In consideration of Contractor's purchase of the containers from District, District agrees that if District terminates the contract for any reason before the expiration of ten years from the effective date of this agreement, District guarantees that it will repay CR &R for the depreciated value of the containers in the same manner as described above. Upon payment, CR &R shall transfer title and all warranties back to District. The following is a timeline for the Contract: Deadline for signed Contract and $$ paid: July 17, 2006 Event Date Contract draft to CR &R Monday, June 26, 2006 Comments from CR &R Final Agreement & Signatures CMSD Signatures Payment to CMSD Monday, July 3, 2006 Monday, July 10,2006 Wednesday, July 12,2006 Regular Meeting Deadline — July 17, 2006 ® Rate Setting Meeting Monday; July 24, 2006 Personnel /Entity Alan /CMSD CR &R Alan /CR &R President Ferryman & Secretary Perry/CMSD CR &R Board of Directors & Staff Minutes of Special Meeting June 19, 2006 Page 4 The regular July Board of Directors meeting was rescheduled to Wednesday, July 12, 2006. X. PUBLIC COMMENTS There were no public comments. XI. ADJOURNMENT President Ferryman adjourned the meeting at 7:30 p.m. Secretary President n U • • • C7 C� Costa Mesa Sanitary District Minutes of Safety /Loss Control Committee Meeting June 28, 2006 Present Rob Hamers Manager /District Engineer Tom Fauth Assistant Manager Joan Revak Board Secretary/Program Manager /Clerk of the District Debbie Bjornson Permit Processing Specialist Karl Dulake Maintenance Supervisor Joe Limon CMSD Inspector Absent Paul Guzman Yefim Tsalyuk Discussion: I. Safety Publications CMSD Inspector Engineer Tom introduced various safety manuals, including the Operations and Maintenance of Wastewater Collection Systems Volume I and Keller's Official OSHA Safety Handbook. Tom will be assembling the District's safety manuals into a Safety Library for easy reference. At the bi- weekly Tailgate Meetings, Tom and Karl discuss worker safety and contractor safety. The Committee and Karl agree that Karl should participate in an OSHA certification class for permit required confined space entry. Both JIMNI Systems and National Plant Services workers are certified. Joe will review the Standard Specifications for Public Works Construction (Green Book) for pipeline construction safety measures to insure the contractors adhere to proper safety standards. II. Year -to -Date Sewer Spills Tom reviewed the SSO (sanitary sewer overflow) information from January 1, 2006 to June 28, 2006 and the total uncaptured public sewer line discharge was five (5) gallons. Rob thanked the Committee members for their efforts in managing and improving the sewer system. Safety /Loss Control Committee Minutes June 28, 2006 Page 2 III. Grit Disposal at OCSD Tom and Karl reviewed the procedure for taking grit to the Orange County Sanitation District for disposal. Grit is the debris that is vacuumed out of sewer manholes into the vactor trucks after a sewer line is cleaned. IV. Safety Meetings & Safety Equipment Karl meets with National Plant Services and JIMNI Systems workers every few days to review safety measures, traffic control, and safety equipment. Rob added that Project #177 Capital Facilities Acquisition Fund has sufficient money to purchase the safety equipment that Karl desires to have. V. President Pumping Station Emergency Repair Joe provided an update of the installation of the by -pass pump at the President Pumping Station. Schuler Engineering Corporation is performing an emergency installation of new pumps and valves. The emergency repair was necessary because the bolts were missing on one of the pumps and spare parts are unavailable. VI. Sewer Permits and Contractor Insurance Debbie insures that contractors who apply for sewer permits have the correct contractor's license and proof of insurance. Rob is currently reviewing the revised Sewer Permit language prepared by CMSD General Counsel Alan Burns. Debbie will verify that Denise Gilbert receives the proper insurance certificates for the contractors who have an emergency services agreement with the District. VII. Next Meeting The Safety Committee will reconvene on Wednesday, August 23, 2006 at 10 a.m. Distribution: CMSD Safety Committee Members CMSD Board of Directors at March 2006 regular meeting SDRMA 2 U • 0 COSTA MESA,St�a�77�'Disz�,lcz' • PROJECT STATUS REPORT July 2006 Project 1 1 1 21 00 -1 01 West Side Pumping Station Abandonment Study The Manager /District Engineer and engineering staff met with an environmental consultant to determine whether the project will be categorically exempt, require a Negative Declaration, or whether an Environmental Impact Report (EIR) will be required under the CEQA requirements. The consultant will prepare a proposal for an environmental constraint study after the District prepares a new map of the overall project. Protect 1112100-129 Bristol Street Pumping Station The County of Orange plans on widening Irvine Avenue from Bristol Street to University Drive, which will cause relocation of the CMSD Tustin Pumping Station. The District can upgrade the station to a level able to serve the redevelopment of the area. The upgrade alleviates the need for the Bristol Street Pump Station and the project can be reduced to construction of a new gravity sewer only. These • findings were submitted to the Orange County Development Agency and as requested the Sanitary District prepared a new three party agreement reflecting these findings. The agreement is being reviewed by the three agencies. Project 1112100-135 Reconstructing Force Main for Elden Pumping Station (Phase Ill Construction is complete. The District and City of Costa Mesa are awaiting comments from the State on the easement and rights -of -way documents submitted. A reminder letter was sent to the O.C. Fairgrounds to continue consideration of the easements. Project 1112100-159 Televisin Sewer Lines Program Years 98 -99 99 -2000 Areas are televised as needed. Proiect 1112100 -168 Tustin Pumping Station Remodel or Relocation The construction of the Phase I gravity sewers is complete and the District Engineering Staff is designing the new pumping station. Project 1112100-171 Tustin Pump Station Force Main Rehabilitation -Phase 0 The design phase is continuing. Project 1112100-173 South Coast Plaza Pump Station Force Main Replacement The design phase is continuing. Project 1112100 -174 FOG Program Development and Implementation The project report was prepared by EEC and approved by the Board of Directors at the January 2006 regular meeting. Project 1112100-175 OCSD Cooperative Project Grant - Televising CMSD Sewer Lines The televising is continuing. Project 1112100-176 WDR Grease Control Program Phase III The project was awarded to EEC at the January 2006 regular meeting. • Protecting our community's health by providing solid waste and sewer collection services. crosdeagov s • • LAW OFFICES OF HARPER & BUMS LLP A LIMRW LIABLLnti' PAB7nFtV41P INC=RM A FROFMIMAL CORPORATION "A KUMSMNAI. WnFORATWN To: Honorable President and Board of Directors From: District Counsel Date: July 5, 2006 Re: Sewer Lateral Maintenauce and Insurance policies Art �7Q C1IIf• ! caN fjF QNAAilf Ufl VA 1) 6744698 As directed by the Board, we have reviewed some sewer lateral maintenance ordinances, as well as an insurance prograrn provided to the District by the Oran.;-,,e County Sanitation District. As we mentioned to the Board, we have determined to provide you with some ideas and common provisions so that the Board can provide further direction to staff on what will be ordained. Summary of Major Provisions of Sewer- Lateral Maintenance Ordinances Reviewed We have prepared a matxix of the major common points of each ordinance. however, our furthd comments are as follows: - The trigger for the inspection is usually a sale, probate sale or remodel. - What is then required is some form of inspection (CCTV, water or air pressure testing) and, if needed, repairs. - A certification that the process was completed - Penalties and enforcement mechanisms As we mentioned before, you can expect that if you adopt such an ordinance, you will not be the darling of the Orange County Register, who has already lashed out at Stanton for requiring a code compliance inspection of a home upon resale. We suspect that this will be portrayed by their editor as another layer of government regulation that is turn cessary and that there are plenty of remedies already in existence so that buyer and seller and government enforcement agencies will, have recourse. That said, we understand that staff' does not set policy and that Board tolerance for such potential criticism is best left to the Board. Summary of American Water Insurance policy Provisions The "American. Water" Service Line Protection Program provides up to $5,000 in coverage in line repair costs from leaks or breaks and up to $8,000 for repair costs for clogs or blockages. 457 S. GLASSBU BrRECY ALANA BURN$ ORANM CALIFORNIA MOO JOHN IL LEWER, COLIN R. BURNB (7141771-7716 OF COUN65L FAX (714)744.9950 11'01 A. CLAW MICHALL MONTCOME&Y' "A KUMSMNAI. WnFORATWN To: Honorable President and Board of Directors From: District Counsel Date: July 5, 2006 Re: Sewer Lateral Maintenauce and Insurance policies Art �7Q C1IIf• ! caN fjF QNAAilf Ufl VA 1) 6744698 As directed by the Board, we have reviewed some sewer lateral maintenance ordinances, as well as an insurance prograrn provided to the District by the Oran.;-,,e County Sanitation District. As we mentioned to the Board, we have determined to provide you with some ideas and common provisions so that the Board can provide further direction to staff on what will be ordained. Summary of Major Provisions of Sewer- Lateral Maintenance Ordinances Reviewed We have prepared a matxix of the major common points of each ordinance. however, our furthd comments are as follows: - The trigger for the inspection is usually a sale, probate sale or remodel. - What is then required is some form of inspection (CCTV, water or air pressure testing) and, if needed, repairs. - A certification that the process was completed - Penalties and enforcement mechanisms As we mentioned before, you can expect that if you adopt such an ordinance, you will not be the darling of the Orange County Register, who has already lashed out at Stanton for requiring a code compliance inspection of a home upon resale. We suspect that this will be portrayed by their editor as another layer of government regulation that is turn cessary and that there are plenty of remedies already in existence so that buyer and seller and government enforcement agencies will, have recourse. That said, we understand that staff' does not set policy and that Board tolerance for such potential criticism is best left to the Board. Summary of American Water Insurance policy Provisions The "American. Water" Service Line Protection Program provides up to $5,000 in coverage in line repair costs from leaks or breaks and up to $8,000 for repair costs for clogs or blockages. Costa Mesa Sanitary District Sewer Lateral Maintenance and L1.surance Policies July 5, 2006 P Qe 2 (The coverage may vary by area.) Enrolimelit is optional and payment terms are "affordable" and payable monthly or annually. Qualified contractors are available 2417. American Water maintains lists of qualified contractors. I will try to obtain more infonraation on this before the Board meeting. American Water, which does both sewer and water lines, als« states that the government agency earns a portion of the revenue collected from the program. The costs are paid through the government agency's bills. It is provided in the informational flyer for the program that most homeowner insurance policies do not cover these types of repairs. If there is an interest in communicating directly with this company their phone number is (856) 309 -4854. Their E -mail is "LineSaver @amwater.com ". Other Government programs The following represent a summary of some other goverainCit programs that have been obtained by the OCSD: — will pay for lateral repairs for 100 homes after a smoke test on 2,000 homes identified these 100 as defective. Up to $1,000 is made available to the homeowner for the repair. A single contractor will be used. —The Castro Valley Sanitary District provides grants of 50% of the cost, up to $2,000 per lateral, for replacement or repair_ 3 competitive bids must be received and CCTV testing is required upon completion of the work. CVSD will perform CCTV testing if clean out is available. $50K has initially been appropriated for the program. Ci�nYrl;noan;iary nis — requires that sewage bacicllow prevention devices be installed to prevent sewage from flowing back to homes. 'Video inspections are required for new structure connections to make sure the lateral is in good working coni.lition. t aff„__ a Ruch — Video inspection is required upon sale or major remodeling and is required every 5 years for commonly held properties such as condos sand apartments. +y,�f R��rlinm= — requires the testing and repair of laterals prior to the sale of property if the structures were built 25 years or more before the date of sale:. Testing is also required if two or more fixtures are added. Clean outs are required in the public right: of way. The test required is either a water ex-filtration-test or an air test. Fj,llertr,n — will place a homeowner on the lateral clean out program if a clean out is available. 0 Costa Mesa Sanitary District Sewer Lateral Maintenance and Insurance policies • July 5, 2006 Page 3 Ll San i.nt,is CLbicnn — Voluntary Sewer Lateral Rehab program that offers up to 50% of the cost up to a maximum of $2,000 to .fix problems on a first come basis. Note It should be noted that some of the agencies in the OCSD survey hold the homeowner responsible for the upper lateral only (the portion from the house to the street), while other agencies like the City of Los Angeles hold the owner responsible all the way to the sewer main (including the portion of the lateral. in the street). CMSD has taken the same position as Los Angeles. The above is meant to give you an overview and options so that the Board can direct what it desires to see on an upcoming agenda. Respectfully submitted, zz Alan R. Burns District Counsel cc: District Engineer/Manager Assistant Manager Staff ALAN R. BURNS JOHIVR. [iARfPli' COLIN R. BURNS OFI`iN,NSGL J(J61 A. (,VVTIN- baCRAPL MONTGONERV .y "I"P'SSMAL COBPOBATON LAW pFF M OF HARPER, & BURNS LLP A 1AA11199 UABIU rph)L? 8LS►,m INCiwuao A MOF85sIQNnL CORPOBA73p4 453 S. GLAICSL4.4, STRE&T ORANG&. CALIPORMA 9286G (714) 771 -7728 FAX (71a)744J3s0 To: honorable President and Board of Directors From: District Counsel Date: July 5, 2006 Re: Receipts R ilm2cfAa � SeN Htia �srtn n (951) 670 -D6B8 Rob has requested that J confirm once more that receipts are :Mill required if we adopt a per diem for expenses, as J indicated in my report to you from the League of California conference session on that subject. As 1 mentioned in my most recent opinion on the subject, adoption of a "per diem" establishes the outside limits for spending; otherwise, the IRS rates apply as the maximum that may be spent. While the per them establishes the maximum rate, it drc)es not eliminate the need for receipts. Receipts are always required. I have attached the pertinent discussion from the Institute for Local Government, which answered t11.1s exact question. In conclusion, receipts are required. It is my understanding that since receipts are required, that there is not a desire to review the expense policy and staff will not be bringing this forward will1out further direction from the Board. Respe Iy submitted, Alan R. Burns District Counsel cc: District En&eerlManager Assistant Manager Accountant 0 Z. �nge Does AB 1234's restrictions apply to expenses incurred by local agency staff`? No. AB 1234's requirements relating to expense reiml,)ursement policies and restrictions on reimbursement rates only apply to "reimbursements of members of a legislative body. "" For consistency and ease of administration, some local agencies have elected to adopt policies that govern expense reimbursements for staff as well as elected and appointed officials, but AB 1234 does not require local agencies to do so. 6. What are the IRS rates for meal expenses? The Internal Revenue Service establishes "per diem" thresholds for employees; any amounts in excess of the per diem for a given area is treated as additional wages for income tax purposes. For example, for 2006, the standard per diem rate for meals (breakfast, lunch and dinner) and incidental expenses in the continental United States is $39. However the rate for Los Angeles, San Francisco, and San Diego areas (as defined) is $64.14 AB 1234 gives local agencies latitude to adopt whatever standards for meal reimbursements that meet community standards. Local officials sometimes want to know what the state';: practices are in terms of reimbursements. Senators and Senate employees, for example, are reimbursed according to the federal government's General Services Administration's rates by geographic area; the web address for these rates is: to hftp://www.gsa._qov/Portal/ sa /e /contentV!ew.do? ! eryYear- 2006 &contentTyoe =GSA _ BASIC &contentld =17943&gueryState= California& nor. =T Note that, under AB 1234, officials must still present reLbythe documenting expenses incurred, even if they are within the guidelines adopted IRS or the local agency. ` 7. If there are no mandatory reimbursement rates, is there no limit on what local officials may be reimbursed for? The law specifies certain thresholds for what constitutes reasonable levels of expenses. For example, for lodging in connection with conferences, the rate may not exceed the maximum group rates published for the conference.15 I F those rates are not available at the time the lodging is booked, the lodging rates must be comparable to those allowed by the Internal Revenue Service or government rates.lEi Local agency officials must use group or government rates for non- conference - related lodging and transportation services. Cal. Gov't Code § 53232.2(b). 'A See Publication 1542 at www.irs.aov or WwW. olic arks. ov/ E:rdiem. 's is Cal. Gov't Code § 53232.2(d). !d. IT Cal. Gov't Code § 532322(e). 244 �wSAWITgRy' BOB � p ouo 00 o r y COSTA MESA SAN, V. l ~ ANY f 4 .. w ORAt��`�p DisTRicT ... an Independent Special District Memorandum To: Board of Directors ;Q From: Wendy H. Davis, District Treasurer `i' Date: June 30, 2006 Subject: Review of 2006 -2007 Statement of Investment Policy 0 BACKGROUND This Investment Policy has been designed to 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 Legal Investment Authon : 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. • 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 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. Protecting our community's health by providing solid waste and sewer collection services. costamesasanitarydrstrict.org • 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 2006 -724 approving the Investment Policy for the 2006 -07 fiscal year and delegate the investment activities to the District Treasurer.. Attachments: Resolution Proposed 2006 -2007 Statement of Investment Policy Glossary El . 0 RESOLUTION NO. 2006-724 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING THE 2006 -2007 STATEMENT OF INVESTMENT POLICY, AND AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ACCORDANCE WITH THE 2006 -2007 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 • U 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 12th day of July 2006. ATTEST: Secretary, Costa Mesa Sanitary District Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss COSTA MESA SANITARY DISTRICT ) President, Costa Mesa Sanitary District Board of Directors I, JOAN REVAK, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2006 -724 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 12th day of July 2006. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District this .12th day of July 2006. Clerk of the Costa Mesa Sanitary District 2 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..." 0 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. Leaalitv - 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. Safetv - 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. Liauiditv - 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. III. 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. 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. l.�I 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 Treai6rer Date `3 0 Accountant Date Attachments: Prudent Man Rule • Investment Guidelines and Strategy Investment Procedures Internal Control- Guidelines Cash Controls Segregation of Responsibilities of the Treasury Functions 4 INVESTMENT GUIDELINES AND STRATEGY 0 I. 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/ 0 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 Maximum Maximum Percent Maturitv 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 Unlimited 5 years 6. Li uidi : 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 Maturitv 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. Li uidi : 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. 0 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. II. 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. INVESTMENT PROCEDURES INTERNAL CONTROL - GUIDELINES (cont) . 0 III. 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: 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 -off's 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. • Of Of • SEGREGATION OF RESPONSIBILITIES OF THE TREASURY FUNCTIONS Function :horization 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. Resr)onsibilit 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 • 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 Aaency 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 is 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 Mortaaae 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 Mortaaae 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 � at are not FDIC insured. The interest is calculated on a 360 -day, actual day month basis and is payable monthly. he District may invest up to 25% of its surplus money in insured CD's with maturities of one year 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 10% of any single �uer. 10 GLOSSARY OF INVESTMENTS (cont) 'Passbook 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 LAW 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. is • it General Ledger Balance Sheet User: skallab Printed: 07/05/2006 - 7:40 A Period Ending 11 Fiscal Period 11, 2006 COSTA 9YES-A S ITART DIS` RIM ... an Independent Special District Description Amount Solid Waste Fund Assets Cash in Bank Cash with Fiscal Agent Accounts Receivable Machinery & Equipment Accumulated Deprec - Equipment Total Assets Liabilities Accrued Interest Payable Capital Lease Payable Total Liabilities •Fund - Balance Reserved for Life Insurance Investment in Fixed Assets Reserve for Operating Unreserved Undesignated RE 0 Total Fund - Balance Retained Earnings: Total Fund Balance and Retained Earnings: Total Liabilities, Fund - Balance and Retained Earnings: 2,321,965.49 (727.30) 19.18 2,374,992.99 (453,182.96) 4,243,067.40 16,485.17 1,573,627.30 1,590,112.47 25,000.00 348,182.73 1,250,000.00 111,513.79 1,734,696.52 891,811.60 2,626,508.12 4,216,620.59 GL - Balance Sheet ( 07/05/2006 - 7:40 AM) Page 1 Description Amount Liquid Waste Fund Assets 7,614.55 Cash in Bank 6,404,878.21 Petty Cash /Change Funds 700.00 Accounts Receivable 1,207.05 Land 77,964.00 Property Rights 4,025.00 Building & Structures 1,340,797.29 Subsurface Sewer Lines 21,701,485.95 Office Furniture & Equipment 286,353.45 Machinery & Equipment 458,725.19 Construction In Progress 351,295.99 Accumulated Deprec - Buildings (303,938.86) Accum Deprec - Subsurface Line (11,312,685.30) Accumulated Deprec - Office Eq (14,317.65) Accumulated Deprec - Equipment (210,143.26) Total Assets 18,786,347.06 Liabilities Accounts Payable 7,614.55 Deposits Payable 164,124.00 Federal Withholding Taxes (2,758.49) Medicare - Employee (413.10) State Withholding Taxes (801.53) PERS Retirement (3,508.32) PERS Medical 497.38 PERS Survivor Benefit 5.58 Life /AD &D Insurance (732.80) Long -Term Disability 904.9 Dental Insurance (492.31 Employee Insurance 390.09 Due to Other Governments 202,792.05 Due to OCSD 264,938.70 Total Liabilities 632,560.72 Fund - Balance Contributed Capital 4,706,828.65 Reserved for Capital Outlay 5,058,876.90 Investment in Fixed Assets 7,683,773.55 Reserve for Operating 425,000.00 Unreserved Undesignated RE (1,955.81) Total Fund - Balance 17,872,523.29 GL - Balance Sheet ( 07/05/2006 - 7:40 AM ) Page 2 r� LJ • 0 Description Amount Retained Earnings: Total Fund Balance and Retained Earnings: Total Liabilities, Fund - Balance and Retained Earnings: GL - Balance Sheet ( 07/05/2006 - 7:40 AM ) 298,602.74 18,171,126.03 18,803,686.75 Page 3 Description Amount Sewer Construction Fund Assets Cash and Investments 223,891.2 Total Assets 223,891.25 Fund - Balance Unreserved Undesignated RE 217,827.50 Total Fund - Balance 217,827.50 Retained Earnings: 6,837.63 Total Fund Balance and Retained Earnings: 224,665.13 Total Liabilities, Fund - Balance and Retained Earnings: 224,665.13 is • GL - Balance Sheet ( 07/05/2006 - 7:40 AM ) Page 4 ` Description Amount Facilities Revolving Fund Assets • Cash and Investments 2,440,549.34 Total Assets 2,440,549.34 Fund- Balance Unreserved Undesignated RE 2,414,872.29 Total Fund - Balance 2,414,872.29 Retained Earnings: 34,010.29 Total Fund Balance and Retained Earnings: 2,448,882.58 Total Liabilities, Fund - Balance and Retained Earnings: 2,448,882.58 • Is GL - Balance Sheet ( 07/05/2006 - 7:40 AM) Page 5 • COSTA 911EsA SANYTART(DISTRICT Memorandum ... an Independent SpeciaCDistrict To: Board of Directors From: Wendy H. Davis, District Treasurer op Date: June 30, 2006 Subject: - Treasurer's Report for the Month of May 2006 Attached is the Treasurer's Report for the month of May 2006. 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 May 31, 2006. The District's investments -are in compliance with the Statement of Investment Policy adopted by the Board at the July 11, 2005 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 May 31, 2006, was 3.857 %. The yield to maturity of the portfolio was 3.863 %. The District's weighted average interest rate was 71 basis points (.706 %) below the monthly effective yield of LAIF, which was 4.563% as of May 31, 2006. The weighted average number of days to maturity for the District's total portfolio was 434 days (1.19 years). The average duration of the underlying securities in LAIF as of May 31, 2006 was 151 days. (Protecting our community's health 6y providing solid waste and sewer collection services. crosdca.gov Compliance Reporting The District's investment portfolio is in compliance with its liquidity limitations, which requires that 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 May 31, 2006 was 40.53 %. As of May 31, 2006, the District has adequate operating reserves necessary to meet its obligations for the next six months. • COSTA MESA SANITARY DISTRICT Treasurer's Report of Pooled Cash and Investments as of May 31, 2006 Deposits Outstanding Active Accounts Bank Balance In Transits Checks Bank of America $ 105,865.50 85,108.23 Reconciling Items 24.01 Total Active Accounts 105,865.50 - 85,132.24 Investments Local Agency Investment Fund Money Market/Sweep Account Medium Term Corporate Notes Federal Agency Securities Total Investments Total Pooled Cash & Investments CMSD Solid Waste Activities CMSD Liquid Waste Activities Total Pooled Cash & Investments Market Adiustment Unaudited Book Balance $ 20,757.27 (24.01) 20,733.26 Market Value Increase Decrease Cost $ 4,450,000.00 - - $ 4,450,000.00 56,983.07 - - $ 56,983.07 6,612,622.50 236,908.75 $ 6,849,531.25 11,119,605.57 - 236,908.75 11,356,514.32 $ 11,225,471.07 - 322,040.99 $ 11,377,247.58 Costa Mesa Sanitary District Pooled Cash and Investments by Fund as of May 31, 2006 r�l.�al6L Wendy H. Davis Date District Treasurer L_J $ 2,321,965.49 9,055,282.09 $ 11,377,247.58 COSTA MESA SANITARY DISTRICT Investment Activity Summary as of May 31, 2006 Total investments outstanding as of April 30, 2006 Additions: Gain on Sale of Investment: Investment Purchases: Deductions: Investment Maturity /Sale Proceeds: Loss on Sale of Investment: Investments Called: Net increase (decrease) in Sweep Account • Net increase (decrease) in LAIF Total investments outstanding as of May 31, 2006 11 $ 10,985,740.93 none none 50,310.64 320,462.72 $ 11,356,514.29 • CUSIP Number Investment n/a Local Agency Investment Fund n/a Bank of New York -Sweep Acct 3128V AT4 Federal Home Loan Mortgage Corp. 31331 QV61 Federal Farm Credit Bank 3128X1AW7 Federal Home Loan Mortgage Corp. 31331 QS32 Federal Farm Credit Bank 31339YDRO Federal Home Loan Bank 31339YPE6 Federal Home Loan Bank 3136F34U7 Federal National Mortgage Assoc. 3133X5ZK7 Federal Home Loan Bank 3133X63Y0 Federal Home Loan Bank "Represents the LAIF monthly at 5/31/06 COSTA MESA SITARY DISTRICT Investment and Investment Earnings as of May 31, 2006 • Comments Interest Purchase Maturity Coupon Investment Earned at Date Date Rate Cost 05/31/06 n/a n/a 4.563% $ 4,450,000.00 n/a n/a n/a 4.400% 56,983.07 n/a 04/06/37 05/14/07 3.250% 1, 000, 000.00 1,534.72 06/24/03 09/24/07 2.625% 500,000.00 2,442.71 05/14/03 05/14/08 3.750% 1,000,000.00 1,770.83 06/18/03 06/18/08 3.240% 600,000.00 8,802.00 07/22/03 07/22/08 3.050% 1,499,531.25 16,393.74 07/30/03 07/30/08 3.400% 1,000,000.00 11,427.77 08/14/03 08/14/08 3.910% 500,000.00 5,810.69 02/19/66 04/30/09 4.050% 500,000.00 1,743.75 12/18/17 04/30/09 4.130% 250,000.00 889.10 $ 11,356,514.32 50,815.31 • Comments COSTA MESA SANITARY DISTRICT Summary of Policy Limitations as of May 31, 2006 Current % of Market Value Description as of 5/31/06 Maximum % U.S. Treasury Bills 0.00% UNLIMITED U.S. Treasury Notes 0.00% UNLIMITED Federal Agency Issues: FICB 0.00% 40% FFCB 9.52% 40% FLB 0.00% 40% FH LB 28.03% 40% FNMA 4.36% 40% FHLMC 17.55% 40% Other * 0.00% 40% Banker's Acceptances 0.00% 40% Certificates of Deposit 0.00% UNLIMITED Negotiable Certificates of Deposits 0.00% 30% ,ommercial Paper 0.00% 15% or 30% (1) edium Term Corporate Notes 0.00% 30% Repurchase Agreements 0.00% UNLIMITED Reverse Repurchase Agreements 0.00% 10% of base LAW (Local Agency Investment Fund) 40.02% 40,000,000.00 Orange County Treasurer's Pool 0.00% 35% Money Market/Mutual Funds (Sweep Acct) 0.51% 10% per fund (2) Asset- Backed/Mortgage- Backed Securities 0.00% 20% Total 100.00% % of portfolio maturing under one year 40.53% no less than 20% % of portfolio maturing over one year 59.47% 100.00% ,,,Ll) Current dollar weighted average maturity as of 3/31/06 is 0 days. Also limited to 20% in total. *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE COSTA MESA *ARY DISTRICT Schedule of Investments by Instrument Type as of May 31, 2006 * *Represents the LAIF monthly at 5/31/06 Comments POOL SWEEP FHLMC FHLMC FHLB FHLB FHLB FHLB FNMA FFCB FFCB Purchase Maturity Coupon Investment % of Market % of Description Broker /Dealer Date Date Rate Cost Portfolio Value Portfolio State Treasurer's Pool LAIF n/a Continuous 4.563% ** $ 4,450,000.00 $ 4,450,000.00 4,450,000.00 39.18% 4,450,000.00 40.02% Money Market Mutual Fund Bank of New York n/a Continuous 4.400% 56,983.07 56,983.07 56,983.07 0.50% 56,983.07 0.51% Federal Home Loan Mortgage Corp. Morgan Stanley 05/14/03 05/14/07 3.250% 1,000,000.00 980,410.00 Federal Home Loan Mortgage Corp. Banc of America 05/14/03 05/14/08 3.750% 1,000,000.00 970,900.00 2,000,000.00 17.61% 1,951,310.00 17.55% Federal Home Loan Notes & Bonds Morgan Keegan 07/22/03 07/22/08 3.050% 1,499,531.25 1,431,562.50 Federal Home Loan Notes & Bonds Morgan Keegan 07/30/03 07/30/08 3.400% 1,000,000.00 960,937.50 Federal Home Loan Notes & Bonds Morgan Keegan 04/30/04 04/30/09 4.050% 500,000.00 482,656.25 Federal Home Loan Notes & Bonds Morgan Stanley 04/30/04 04/30/09 4.130% 250,000.00 241,875.00 3,249,531.25 28.61% 3,117,031.25 28.03% Federal National Mortgage Assoc. Morgan Keegan 08/14/03 08/14/08 3.910% 500,000.00 485,312.50 500,000.00 4.40% 485,312.50 4.36% Federal Farm Credit Bank Citigroup Global 06/24/03 09/24/07 2.625% 500,000.00 482,968.75 Federal Farm Credit Bank Morgan Stanley 06/18/03 06/18/08 3.240% 600,000.00 576,000.00 1,100,000.00 9.69% 1,058,968.75 9.52% Total Investments $ 11,356,514.32 100.00% $ 11,119,605.57 100.00% * *Represents the LAIF monthly at 5/31/06 Comments POOL SWEEP FHLMC FHLMC FHLB FHLB FHLB FHLB FNMA FFCB FFCB COSTA MESA SITARY DISTRICT Investment Portfolio as of May 31, 2006 Total Portfolio Weighted Avg Interest Rate 3.857% Weighted Avg Yield to Maturity 3.863% Weighted Avg Days to Maturity 434 Days 1.19 Years "Represents the LAIF monthly at 5/31/06 Investment Purchase Maturity Days to Coupon Yield to Investment Broker /Dealer Type Date Date Maturity Rate Maturity Cost Local Agency Investment Fund Pool 1 4.563% ** 4.563% $ 4,450,000.00 Bank of New York Sweep 1 4.400% 4.400% 56,983.07 Morgan Stanley FHLMC 05/14/03 05/14/07 348 3.250% 3.240% 1,000,000.00 Citigroup Global Markets Inc. FFCB 06/24/03 09/24/07 481 2.625% 2.670% 500,000.00 Banc of America FHLMC 05/14/03 05/14/08 714 3.750% 3.740% 1,000,000.00 Morgan Stanley FFCB 02/19/66 06/18/08 749 3.240% 3.260% 600,000.00 Morgan Keegan FHLB 07/22/03 07/22/08 783 3.050% 3.090% 1,499,531.25 Morgan Keegan FHLB 07/30/03 07/30/08 791 3.400% 3.410% 1,000,000.00 Morgan Keegan FNMA 08/14/03 08/14/08 806 3.910% 3.900% 500,000.00 Morgan Keegan FHLB 04/30/04 04/30/09 1,065 4.050% 4.040% 500,000.00 Morgan Stanley FHLB 04/30/04 04/30/09 1,065 4.130% 4.120% 250,000.00 Total Investment Portfolio $ 11,356,514.32 Total Portfolio Weighted Avg Interest Rate 3.857% Weighted Avg Yield to Maturity 3.863% Weighted Avg Days to Maturity 434 Days 1.19 Years "Represents the LAIF monthly at 5/31/06 COSTA -MESA S *TARY DISTRICT for all Maturities with Market Values as of May 31, 2006 Total Investments "Represents the LAIF monthly at 5/31/06 $ 11,356,983.07 11,356,514.32 11,119,605.57 50,815.31 (236,908.75) Net Purchase Maturity Intuition Investment Coupon Investment Market Accrued Gain/(Loss) Date Date Broker /Dealer Tvpe Par Rate Cost Value Interest If Sold n/a Continuous LAIF POOL $ 4,450,000.00 4.563% "' 4,450,000.00 4,450,000.00 - - n/a Continuous Bank of New York SWEEP 56,983.07 4.400% 56,983.07 56,983.07 - - 05/14/03 05/14/07 Morgan Stanley FHLMC 1,000,000.00 3.250% 1,000,000.00 980,410.00 1,534.72 (19,590.00) 06/24/03 09/24/07 Morgan Keegan FFCB 500,000.00 2.625% 500,000.00 482,968.75 2,442.71 (17,031.25) 05/14/03 05114/08 Banc of America FHLMC 1,000,000.00 3.750% 1,000,000.00 970,900.00 1,770.83 (29,100.00) 06/18/03 06/18/08 Morgan Stanley FFCB 600,000.00 3.240% 600,000.00 576,000.00 8,802.00 (24,000.00) 07/22/03 07/22/08 Morgan Keegan FHLB 1,500,000.00 3.050% 1,499,531.25 1,431,562.50 16,393.74 (67,968.75) 07/30/03 07/30/08 Morgan Keegan FHLB 1,000,000.00 3.400% 1,000,000.00 960,937.50 11,427.77 (39,062.50) 08/14/03 08/14/08 Morgan Keegan FNMA 500,000.00 3.910% 500,000.00 485,312.50 5,810.69 (14,687.50) 04/30/04 04/30/09 Morgan Keegan FHLB 500,000.00 4.050% 500,000.00 482,656.25 1,743.75 (17,343.75) 04/30/04 04/30/09 Morgan Stanley FHLB 250,000.00 4.130% 250,000.00 241,875.00 889.10 (8,125.00) Total Investments "Represents the LAIF monthly at 5/31/06 $ 11,356,983.07 11,356,514.32 11,119,605.57 50,815.31 (236,908.75) 0 0 COSTA MESA SANITARY DISTRICT Call Schedule as of May 31, 2006 Type of Purchase Maturity Coupon Investment Investment Date Date Rate Par Value Cost Call Features FFCB 06/18/03 06/18/08 3.240% $ 600,000.00 600,000.00 Continuous Call w/ 7 days notice. FFCB 06/24/03 09/24/07 2.625% 500,000.00 500,000.00 Continuous Call w/ 7 days notice. FHLB 07/22/03 07/22/08 3.050% 1,500,000.00 1,499,531.25 Callable 7/22/06 w/ 5 days notice. FHLB 04/30/04 04/30/09 4.050% 500,000.00 500,000.00 Callable 7/30/06 w/ 5 days notice. FHLB 04/30/04 02/19/66 4.130% 250,000.00 250,000.00 Callable 7/30/06 w/ 5 days notice. FHLB 07/30/03 07/30/08 3.400% 1,000,000.00 1,000,000.00 Callable 7/30/06 w/ 5 days notice. FNMA 08/14/03 08/14/08 3.910% 500,000.00 500,000.00 Callable 8/14/06 w/ 10 days notice. FHLMC 05/14/03 05/14/07 3.250% 1,000,000.00 1,000,000.00 Callable 11/14/06 w/ 5 days notice. FHLMC 05/14/03 05/14/08 3.750% 1,000,000.00 1,000,000.00 Callable 11/14/06 w/ 5 days notice. $ 6,850,000.00 6,849,531.25 I -_Ij COSTA MESA SANITARY DISTRICT - MATURITIES DISTRIBUTION as of May 31, 2006 ----------------------------------------- 60 - --------------------------- - 50 39.69% 38.30% 30% -- ----------- - - - - -- --------- - - - - -- 20% 13.21 881 % ql 11 0.00% 0.00% 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 $ 4,507 181 - 365 Days 1,000 1 - 2 Years 1,500 2 - 3 Years 4,350 3 - 4 Years - 4 - 5 Years - TOTAL $ 11,357 6.00 5.00 % 4.00% 3.00% 2.00% 1.00% 0.00% Costa Mesa Sanitary District Yield Curve Data as of May 31, 2006 0 0 0 0 0 0 � \2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I � \�o\'L 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 Genefal Ledger Revenue vs. Expenses by Account Type User: skallab Printed: 07/03/2006 - 9:32 Period 11, 2006 Full Year Budget Account 10 REVENUE EXPENSES 10- 100000 Description Solid Waste Fund COSTA WEV SYWITA RT DIST ICT ... an Independent Speciat 4%scrict 11/12 Budget Period Amount YTD Amount YTD Variance Budg Amt % Budg Expended Property Taxes 30,000.00 21,032.53 44,472.86 - 147472.86 27,500.00 148.24 License & Permits 0.00 0.00 0.00 0.00 0.00 0.00 From Use Of Money 50,000.00 50,173.32 111,244.31 - 61,244.31 45,833.37 222.49 From Other Agencies 0.00 0.00 0.00 0.00 0.00 0.00 Charges For Services 5,000.00 1,974.50 23,965.41 - 1&965.41 4,583.37 479.31 Special Assessment Charges 5,010,578.00 399,780.97 4,983,426.93 27,151.07 4,593,029.87 99.46 Other Revenue 26,500.00 200.00 32,278.08 - 51778.08 24,291.63 121.80 Other Financing Sources 0.00 0.00 0.00 0.00 0.00 0.00 Non Operating Revenue 0.00 0.00 2.00 -2.00 0.00 0.00 REVENUE Totals: Solid Administration Salary & Benefits Professional Services Recycling & Disposal Other Contract Services Materials & Supplies Professional Development Liability Insurance Utilities Central Services Fixed Assets Debt Service Other Financing Uses Non Operating - Other 5,122,078.00 473,161.32 5,195,389.59 - 73,311.59 4,695,238.13 101.43 94,152.00 7,557.19 81,893.12 12,258.88 86306.00 86.98 90355.00 1494.55 43,443.88 46,911.12 82,825.38 48.08 4,554,481.00 182,140.73 3,829,045.78 725,435.22 4,174,940.88 84.07 2,040.00 964.15 2,908.74 - 868.74 11870.00 142.59 8,160.00 4,316.93 6,520.44 1,639.56 7,480.00 79.91 12,566.00 93.23 10,388.15 2,177.85 11,518.87 82.67 5,500.00 0.00 5,276.45 223.55 5.041.63 95.94 2,306.00 156.14 1,502.19 803.81 2,113.87 65.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 274,142.00 0.00 274,141.98 0.02 251,296.87 100.00 0.00 0.00 0.00 0.00 0.00 0.00 24,277.00 0.00 0.00 24,277.00 22,253.88 0.00 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 1 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 2 [ r 11/12 Account Description Budget Period Amount YTD Amount YTD Variance Budg Amt % Budg Expended 10- 100000 Totals: 5,067,979.00 197,722.92 812,858.27 4,645,647.38 83.96 4,255,120.73 10- 100001 Sharps Program Special Programs 10,000.00 286.07 6,011.05 3,988.95 9,166.63 60.11 10- 100001 Totals: 10,000.00 286.07 6,011.05 3,988.95 9,166.63 60.11 10- 100002 Household Hazardous Waste Special Programs 18,000.00 0.00 11,006.00 6,994.00 16,500.00 61.14 10- 100002 Totals: 18,000.00 0.00 11,006.00 6,994.00 16,500.00 61.14 10- 100003 Telephone Book Recycling Special Programs 10,000.00 0.00 14.662.16 - 4,662.16 9,166.63 146.62 10- 100003 Totals: 10,000.00 0.00 14,662.16 - 4,662.16 9,166.63 146.62 10- 100004 Large Item Pick -up Special Programs 5,000.00 0.00 0.00 5,000.00 4,583.37 0.00 10- 100004 Totals: 5,000.00 0.00 0.00 5,000.00 4,583.37 0.00 10- 100005 Used Tire Roundup Special Programs 500.00 0.00 991.39 - 491.39 458.37 198.28 10- 100005 Totals: 500.00 0.00 991.39 - 491.39 458.37 198.28 10- 100006 Christmas Tree Recycling Special Programs 500.00 0.00 0.00 500.00 458.37 0.00 10- 100006 Totals: 500.00 0.00 0.00 500.00 458.37 0.00 10- 100007 Greeting Card Recycling Special Programs 100.00 0.00 0.00 100.00 91.63 0.00 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 2 Account Description Budget Period Amount YTD Amount YTD Variance 11/12 Budg Amt % Budg Expended 10- 100007 Totals: 100.00 0.00 0.00 100.00 91.63 0.00 10- 100008 Educational Tours Special Programs 5,000.00 0.00 501.81 4,498.19 4.583.37 10.04 10- 100008 Totals: 5,000.00 0.00 501.81 4,498.19 4,583.37 10.04 10- 100100 Containers Materials & Supplies 21,501.00 6.165.97 15,284.85 6,216.15 19,709.25 71.09 10- 100 100 Totals: 21,501.00 6,165.97 15,284.85 6,216.15 19,709.25 71.09 EXPENSES Totals: 5,138,580.00 204,174.96 4303,577.99 835,002.01 4,710,365.00 83.75 10 Totals: - 16,50100 - 268,986.36 891,811.60 - 908,313.60 - 15,126.87 ? ? ? ? ? ?? 20 Liquid Waste Fund REVENUE Property Taxes 0.00 0.00 - 451.72 451.72 0.00 0.00 License & Permits 20,000.00 825.00 13,170.00 6,830.00 18,333.37 65.85 From Use Of Money 250,000.00 0.00 191,039.67 58,960.33 229,166.63 76.42 From Other Agencies 320,591.00 0.00 0.00 320.591.00 291875.12 0.00 Charges For Services 143,000.00 1,637.00 76,412.35 66,587.65 131,083.37 53.44 Special Assessment Charges 2,058,639.00 228,729.38 2,221,237.95 - 162,598.95 1,887,085.75 107.90 Other Revenue 21,000.00 0.00 34,690.64 - 13,690.64 - 19,250.00 165.19 Other Financing Sources 0.00 0.00 0.00 0.00 0.00 0.00 Non Operating Revenue 0.00 0.00 0.00 0.00 0.00 0.00 REVENUE Totals: 2,813,230.00 231,191.38 2,536,098.89 277,131.11 2,578,794.13 90.15 EXPENSES 20- 000574 (No Description) Capital Improvement Program 0.00 0.00 0.00 0.00 0.00 0.00 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 3 Account Description Budget Period Amount 11/12 • YTD Amount YTD Variance Budg Amt % Budg Expended 20- 000574 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200000 Liquid Administration Salary & Benefits 460,479.00 36,910.05 393,115.94 67,363.06 422,105.75 85.37 Professional Services 239,140.00 15,371.21 246,228.99 - 7,088.99 219,211.63 102.96 City Contract 0.00 0.00 0.00 0.00 0.00 0.00 Other Contract Services 18.360.00 8,544.76 25,356.38 - 6,996.38 16,830.00 138.11 Materials & Supplies 35,840.00 838.68 27,548.14 8,291.86 32,853.37 76.86 Professional Development 39.005.00 1,260.79 34,846.19 4,158.81 35,754.62 89.34 Liability Insurance 49.500.00 0.00 48,540.12 959.88 45,375.00 98.06 Utilities . 94.770.00 8,562.40 81,640.88 13,129.12 86,872.50 86.15 Central Services 0.00 0.00 0.00 0.00 0.00 0.00 Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00 Other Financing Uses 0.00 0.00 0.00 0.00 0.00 0.00 Non Operating - Other 19,046.00 0.00 37.11 19,008.89 17,458.87 0.19 20- 200000 Totals: 956,140.00 71,487.89 857,313.75 98,826.25 876,461.63 89.66 20- 200001 Sewer Maint Salary & Benefits 50,000.00 8,624.42 41,168.22 8,831.78 45,833.37 82.34 Professional Services 0.00 0.00 66,907.74 - 66,907.74 0.00 0.00 City Contract 576.500.00 61550.26 267,813.58 308,686.42 528,458.37 46.46 Materials & Supplies 0.00 0.00 263.87 - 263.87 0.00 0.00 Capital Improvement Program 0.00 41,007.45 94,323.46 - 94,323.46 0.00 0.00 20- 200001 Totals: 626.500.00 56,18113 470,476.87 156,023.13 574,291.63 75.10 20- 200429 Bristol Pump Station Capital Improvement Program 59.123.00 0.00 0.00 59,123.00 54,196.12 0.00 20- 200429 Totals: 59,123.00 0.00 0.00 59.123.00 54.196.12 0.00 20- 200449 Sinking Fd/Future Sewer Lines Capital Improvement Program 1,670,805.00 0.00 0.00 1,670,805.00 1,53 1 ,571.25 0.00 20- 200449 Totals: 1,670,805.00 0.00 0.00 1,670,805.00 1,531,571.25 0.00 20- 200456 Earthquake/Major Emer Swr Rep GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 4 Account Description Budget Period Amount YTD Amount YTD Variance 11/12 Budg Amt % Budg Expended Capital Improvement Program 0.00 0.00 0.00 0.00 0.00 0.00 20- 200456 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200459 Televising Swr Lines Capital Improvement Program 40,291.00 1,155.00 13.772.50 26,518.50 36,933.38 34.18 20- 200459 Totals: 40,291.00 1,155.00 13,772.50 26,518.50 36.933.38 34.18 20- 200461 Construction Water Svc Capital Improvement Program 0.00 0.00 0.00 0.00 0.00 0.00 20- 200461 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200462 Pilot Prog Use of Enzymes Capital Improvement Program 0.00 0.00 0.00 0.00 0.00 0.00 20- 200462 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200464 Misc. Swr Work/Manhole Adj. Capital Improvement Program 122,177.00 21,154.20 65,315.30 56,861.70 111,995.62 53.46 20- 200464 Totals: 122,177.00 21,154.20 65,3.15.30 56,861.70 111.995.62 53.46 20- 200466 Manhole/Pump Stn Coating Capital Improvement Program 0.00 15.00 15.00 -15.00 0.00 0.00 20- 200466 Totals: 0.00 15.00 15.00 -15.00 0.00 0.00 20- 200467 Emerson St Sewer Reloc Capital Improvement Program 0.00 0.00 0.00 0.00 0.00 0.00 20- 200467 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200468 Tustin Pump Stn Remodel Capital Improvement Program 737,970.00 0.00 461,322.97 276,647.03 676,472.50 62.51 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 5 Account Description Budget Period Amount YTD Amount YTD Variance I1 /l2 • Budg Amt % Budg Expended 20- 200468 Totals: 737,970.00 0.00 461,322.97 276,647.03 676,472.50 62.51 20- 200469 Telemetry System Upgrade Capital Improvement Program 70,000.00 0.00 71,591.00 - 1,591.00 64,166.63 102.27 20- 200469 Totals: 70.000.00 0.00 71,591.00 - 1,591.00 64,166.63 102.27 20- 200470 Emerg Response Plan Pump Stn Capital Improvement Program 26,600.00 0.00 0.00 26.600.00 24,383.37 0.00 20- 200470 Totals: 26,600.00 0.00 0.00 26.600.00 24,383.37 0.00 20- 200471 Tustin Main # 171 Capital Improvement Program 540.000.00 0.00 0.00 540.000.00 495,000.00 0.00 20- 200471 Totals: 540,000.00 0.00 0.00 540,000.00 495.000.00 0.00 20- 200472 Waste Discharge Req Capital Improvement Program 0.00 0.00 0.00 0.00 0.00 0.00 20- 200472 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200473 SC Plaza Stn Force Main Replac Capital Improvement Program 181,770.00 0.00 2,488.75 179,281.25 166.622.50 1.37 20- 200473 Totals: 181,770.00 0.00 2,488.75 179.281.25 166,622.50 1.37 20- 200501 To Be Determined Special Programs 0.00 0.00 0.00 0.00 0.00 0.00 20- 200501 Totals: 0.00 0.00 0.00 0.00 0.00 0.00 20- 200574 FOG # 174 Capital Improvement Program 100,101.00 0.00 103,042.83 - 2,941.83 91,759.25 102.94 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 6 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 7 11/12 Account Description Budget Period Amount YTD Amount YTD Variance Budg Amt % Budg Expended 20- 200574 Totals: 100,101.00 0.00 - 2,941.83 91,759.25 102.94 103,042.83 20- 200575 OCSD Grant Capital Improvement Program 747,349.00 20,891.33 96,327.94 651,021.06 685,069.88 12.89 20- 200575 Totals: 747,349.00 20,891.33 96,327.94 651,021.06 685,069.88 12.89 20- 200601 Westside Abandonment #10 1 Capital Improvement Program 10000.00 0.00 2,554.37 97,445.63 917666.63 2.55 20- 200601 Totals: 100.000.00 0.00 2,554.37 97,445.63 91,666.63 2.55 20- 200676 WDR Phase III # 176 Capital Improvement Program 190,000.00 10,890.74 11,256.01 178,743.99 174,166.63 5.92 20- 200676 Totals: 190,000.00 10,890.74 11,256.01 178,743.99 174,166.63 5.92 20- 200677 Capital Facility Aq # 177 Capital Improvement Program 1.242,691.00 0.00 69.912.62 1,172,778.38 1,139,133.38 5.63 20- 200677 Totals: 1,242,691.00 0.00 69,912.62 1,172,778.38 1,139,133.38 5.63 20- 200678 Replace Sewer Bypass #178 Capital Improvement Program 75.000.00 0.00 0.00 75,000.00 68,750.00 0.00 20- 200678 Totals: 75,000.00 0.00 0.00 75,000.00 68.750.00 0.00 20- 200679 Building /Grounds Fund # 179 Capital Improvement Program 75,000.00 0.00 12,106.24 62,893.76 68,750.00 16.14 20- 200679 Totals: 75,000.00 0.00 12,106.24 62,893.76 68,750.00 16.14 EXPENSES Totals: 7,561,517.00 181,776.29 2,237,496.15 5,324,020.85 6,93 1 ,390.62 29.59 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 7 Account Description Budget Period Amount YTD Amount YTD Variance 11/12 Budg Amt % Budg Expended 20 Totals: - 4,748,287.00 - 49.415.09 298,602.74 - 5,046,889.74 - 4,352,596.38 -6.29 21 Sewer Construction Fund REVENUE From Use Of Money 0.00 0.00 6,837.63 - 6,837.63 0.00 0.00 REVENUE Totals: 0.00 0.00 6,837.63 - 6,837.63 0.00 0.00 21 Totals: 0.00 0.00 6,837.63 - 6,837.63 0.00 0.00 30 Facilities Revolving Fund REVENUE From Use Of Money 80.500.00 0.00 - 5,924.91 86,424.91 73,791.63 -7.36 Charges For Services 0.00 651.95 39,935.20 - 39.935.20 0.00 0.00 30- 300000 Facilities Rev Admin Charges For Services 10,000.00 0.00 0.00 10,000.00 9,166.63 0.00 30- 300000 Totals: 10,000.00 0.00 0.00 10,000.00 9,166.63 0.00 REVENUE Totals: 90,500.00 651.95 34,010.29 56,489.71 82,958.37 37.58 30 Totals: 90,500.00 - 651.95 34,010.29 56,489.71 82,958.37 37.58 REVENUE TOTAL 8,025.808.00 705,004.65 7,772,336.40 253,471.60 7,356,990.63 96.84 EXPENSE TOTAL 12,700,097.00 385,951.25 6,541,074.14 6,159,022.86 11,641,755.62 51.50 GRAND TOTAL - 41674,289.00 319,053.40 1,231,262.26 - 5,905,551.26 - 4,284,765.10 - 316.09 GL - Revenue vs Expenses (07/03/2006 - 9:32) Page 8