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Agenda Packets - Board - 2007-09-13-'dam a.`9vN 4.11-1 Safi ... an Independent Special District Arlene Schafer Vice President Art Perry President Bob Ooten Secretary Jim Ferryman Gary Monahan Director Director Regular Meeting - Thursday, September 13, 2007 RECOMMENDED ACTION CALL TO ORDER — 6:00 p.m. — 628 W. 191" Street, Costa Mesa II. PLEDGE OF ALLEGIANCE — Jim Ferryman III. INVOCATION — Tom Fauth IV. ROLL CALL (If absences occur, consider whether to deem those absences excused based on facts presented for the absence — such determination shall be the permission required by law.) 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 Recycling Committee Meeting — August 6, 2007 2. Special Meeting Minutes — August 6, 2007 Sewer System Committee Meeting — August 8, 2007 Protecting our community's heafth by ping sofuf waste andsewer collection services. www.crosdcagov AGENDA September 13, 2007 Page 2 RECOMMENDED ACTION 4. Regular Meeting — August 9, 2007 Manager's Reports 5. Refunds No Refunds 6. Occupancy Report and payment to Costa Mesa Disposal — August 2007 Approve 7. Monthly Spill Report to State Water Resources Control Board Receive & File 8. Human Resources Meeting Minutes —August 22, 2007 Receive & File Engineer's Reports 9. Project Status Report Receive & File 10. Safety /Loss Control Meeting Minutes— August 22, 2007 Receive & File Treasurer's Reports 11. Financial Reports as of August 31, 2007 Receive & File 12. Treasurer's Reports as of August 31, 2007 Receive & File 13. Warrant Register for the month of August 2007 in the am ount of Ratify Payments $823,933.76 14. Directors' Compensation and Rei mbursement of Expenses for the Approve Compensation Month of August 2007 & Ratify Expenses -------------------------------------- - - - - -- -END OF CONSENT CALENDAR-------------------------------------- - - - - -- VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. Date and time of Regular Board of Directors Meetings B. District Yard Possible Closed Session to Discuss Real Property Negotiations (Price, Terms) Pursuant to Government Code Section 54956.8 Regarding the Following Properties: 1. 174 Wilson Street with David Jackson Hester, Sr. 2. 1780 Whittier Avenue with the Ward Family 3. 1653 Superior Avenue with Robert D. Alexson Verbal Report Accept Report Protecting our community s heafth 6yprovyXing sofad waste and sewer collection services www.crosdcagov Samtay� :fist - Cit September 13, 2007 AGENDA Page 3 J. Update on Monitor Video Accept Report RECOMMENDED CMSD Board Room, 628 W. 19th Street, Costa Mesa ACTION C. CMSD Strategic Plan 1. Recycling Committee Goals for 2007/2008 Receive & File 1. Year 2007/2008 Strategic Planning Action Items Accept Report D. Sewer System Committee 10:00 a.m. to 2:00 p.m. at City of Costa Mesa Corporation Yard 1. Report on Committee Meeting held September 12, 2007 Accept Report 5. Guest 2. Potential Transfer of OCSD Sewers to CMSD Consider in Concept Accept Report 3. CMSD Project #101 – Westside Pump Station Abandonment Approve Letter of Request To OCSD E. CR &R Annual Review Consider F. Status of CMSD Website – www.crosdca.gov Accept Report G. Recycling Reports 1. Waste Diversion Report – August 2007 Receive & File H. Contract Payment to CR Transfer for Recycling Services and Disposal 1. Payment for August 2007 Services Ratify Subject to Verification of Diversion Report by Staff I. Ordinance Enforcement Officer's Report Accept Report J. Update on Monitor Video Accept Report K. Recycling Committee — Monday, September 10, 2007,12:00 p.m., CMSD Board Room, 628 W. 19th Street, Costa Mesa (Director Ooten and President Perry) 1. Recycling Committee Goals for 2007/2008 Receive & File 2. Large Item Collection – June 11 – August 24, 2007 Accept Report 3. Used Tire Round -Up – Saturday, October 20, 2007, Accept Report 10:00 a.m. to 2:00 p.m. at City of Costa Mesa Corporation Yard 4. IWMD Recycling & Waste Diversion Grant Program Accept Report 5. Guest Accept Report 6. Orange Coast College Recycling Center Collection of E -Waste Accept Report 7. Report on District Programs Accept Report Protecting our community's hearth 6y ping soCurwaste and sewer coQection services. www.crosdcagov co, ty Jet AGENDA IX. ENGINEER'S REPORTS September 13, 2007 Page 4 RECOMMENDED ACTION A. Waste Discharge Requirements (WDR) Update B. Project #129 — Three Party Agreement between CMSD, OCDA and Approve 8/29/07 Revision City of Newport Beach C. Memorandum of Understanding with Irvine Ranch Water District Consider D. 2100 Canyon Drive — Tract No. 10670 Accept Easement Dedication E. Grant of Easement for the Orange County Fair and Approve & Accept Easement Exposition Sewer Easement F. Proposal for Preliminary Civil Engineering for 174 Wilson Street Consider Proposal X. TREASURER'S REPORTS A. Purchase of Springbrook Upgrade and Modules Approve B. Investment Oversight Committee Meeting held September 13, 2007 Accept Report (President Perry and Vice President Schafer) C. Budget Adjustment for Yard Acquisition Approve Budget Adjustment XI. ATTORNEY'S REPORTS A. CMSD Ordinance No. 61 — Modifying its Prohibition on Existing Single- Adopt Ordinance Family Dwellings being Connected to a S Ingle Sewer Lateral B. CMSD Ordinance No. 62 — Adding Chapter 7.04 to the CMSD Operations Adopt Ordinance Code Pertaining to the Requirements for Televising & Repairing Sewer Laterals C. CMSD Ordinance No. 63 — Adopting a Sewer Lateral Assistance Program Adopt Ordinance D. CMSD Resolution No. 207 -742 — Establishing a Sewer Lateral Assistance Adopt Resolution Program E. Astin v. CMSD (Sup. Court Case No. 06CC05755) Status Report Coverage & Defense (Possible need for closed session pursuant to Government Code 54956.9(a)) Status Report F. Flow Control — United Haulers v. Oneida - Herkimer Accept Report G. Senate Bill 699 "Capacity Charges" Accept Report Protecting our community's health 6y providing soli d waste and sewer colfection services. www.cmsdca.gov AGENDA September 13, 2007 Page 5 RECOMMENDED XIII. OLD BUSINESS XIV. NEW BUSINESS A. Tristate Seminar on the River — September 27 -29, 2007 in Primm, NV Approve Attendance by Director Ooten XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov ACTION XII. LOCAL MEETINGS (Includes Reports by all Directors Representing CMSD) A. Orange County Sanitation District (OCSD) 1. Meeting Held August 22, 2007 (Director Ferryman) Accept Report B. Santa Ana River Flood Protection Agency (SARFPA) Accept Report C. Independent Special Districts of Orange County (ISDOC) Accept Report (Director Schafer) 1. Quarterly Meeting — Thursday, August 30, 2007 Accept Report 11:30 a.m. at Irvine Ranch Water District D. Local Agency Formation Commission (LAFCO) Accept Report (Director Schafer) E. California Special Districts Association (CSDA) Accept Report (Director Schafer) F. California Association of Sanitation Agencies (CASA) Accept Report G. Other Meetings Qualifying for Reimbursement under CMSD Report on Matters Ordinance No. 55, Operations Code Section 3.01.030 Pertaining to CMSD XIII. OLD BUSINESS XIV. NEW BUSINESS A. Tristate Seminar on the River — September 27 -29, 2007 in Primm, NV Approve Attendance by Director Ooten XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov 8 -9 -07 Glorious Creator, We thank You for bringing our humble District Board members, Staff and public together to address the issues before us. We respectfully ask for your guidance: 1. to give our best attention to the matters on our agenda; 2. to remain focused with determination and reason in reaching our decisions; I and to keep the best interests of our community as our main goal. We also ask You to watch over those in danger overseas and at home, from the battlefields to the coal mines. And, we thank You for Your many Blessings. We ask this in Your name. Amen 9 -13 -07 Omniscient Creator, It is good to recognize how different we are. Our talents, our dreams, our backgrounds and our occupations. And it is good to know that when You created each of us, You broke the mold. No one is exactly like anyone else. Even our thumb prints and our voice tracks tell us how unique we are. We thank You that we can take advantage of these differences and mobilize them for the good of our community. These differences enable us to move together toward a common goal from different perspectives. We ask for your blessings as we meet this evening and face the issues before us. We thank You for our individuality and for our common bond. In Your Name, Amen. • • • NEW COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING August 6, 2007 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Bob Ooten, Jim Ferryman Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Denise Gilbert Others Present: Donna Theriault, City of Costa Mesa Director Ooten called the meeting to order at 12:00 p.m. RECYCLING COMMITTEE GOALS FOR 2007/2008 The Committee reviewed the detailed 2007/2008 recycling goals. II. LARGE ITEM COLLECTION -JUNE 11 -AUGUST 24, 2007 Ms. Revak reported on the status of the 2007 Large Item Collection Program, running from June 11 to August 24, 2007. As of July 31, 2007, 260.88 tons were landfilled at a total cost of $4,711.55. Recyclable White Goods collected during this period totaled 61.08 tons for a credit of $5,191.75, amounting to a net credit -to -date of $480.20. Ms. Revak provided a chart showing the weekly status of the program. III. REVIEW OF SPECIAL PROGRAMS & DISTRIBUTION OF OUTREACH MATERIAL Director Ooten reported the Board of Supervisors recently approved funding in the amount of $1,000,000 for IWMD's inaugural Regional Recycling and Waste Diversion Grant Program. Each City has an opportunity to receive grant funding up to $40,000 for large cities with populations of more than 100,000. A meeting held on July 12, 2007 determined the Costa Mesa Sanitary District would receive $30,000 of the funds and the City of Costa Mesa portion would be $10,000. Mr. Hamers stated he understood the City's Director of Public Services request that the City and District each be awarded an equal share of the funds. Mr. Hamers recommends the District and City work together on recycling programs to benefit the residents of Costa Mesa. Protecting our community's Health by providing solid waste and sewer collection services. www.crosdca.Sov Costa Mesa Sanitary District Minutes of Recycling Committee Meeting August 6, 2007 Page 2 IV. TOUR OF CR &R RECYCLING FACILITY & FRANK R. BOWERMAN LANDFILL Ms. Gilbert reported on a tour held on Wednesday July 11, 2007 of CR Transfer and the Frank Bowerman Landfill. Staff members, Karl Dulake and Ms. Gilbert participated in the tour. The tour was very successful with all participants eager to share their new -found knowledge with family and friends. V. GUEST — DONNA THERIAULT, CITY OF COSTA MESA Ms. Theriault described the commercial and open competitive system with 15 franchised haulers. The haulers are required to report tonnage taken to the landfills and must meet the 50% diversion rate. Ms. Theriault also reported the City volunteers its used oil program funds to compliment the Sanitary District's contribution resulting in a successful HHW collection program. The City is open to continuing the program unless grant money is eliminated as the City has no funds other than grants for their recycling programs. Mr. Hamers requested Ms. Theriault comment on the kind of educational materials the City's permitted haulers provide to the residents and commercial businesses they serve. Mr. Theriault will provide materials to the District that are distributed by the haulers. The Committee invited Ms. Theriault to attend the next Recycling Committee on Monday, September 10, 2007 at 12:00 p.m. to discuss the use of the grant funds from the County IWMD. VI. ORANGE COAST COLLEGE RECYCLING CENTER — COLLECTION OF E -WASTE The District is awaiting news on the approval of collecting E -Waste at the Orange Coast College Recycling Center. V. PUBLIC COMMENTS There were no public comments. The meeting was adjourned at 1:25 p.m. Secretary President Protecting our community's health by providing solid waste and sewer co((ection services. www.crosdca.qov • C: • • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING AUGUST 6, 2007 Call to Order Pledge of Allegiance Invocation Roll Call Directors Present: Directors Absent: The Board of Directors of the Costa Mesa Sanitary District met in special session on August 6, 2007, at 6:00 p.m. at 1845 Park Avenue, Costa Mesa. Vice President Schafer called the meeting to order at 6:00 p.m. Director Ferryman led the Pledge of Allegiance. Assistant Manager Tom Fauth gave the Invocation. Arlene Schafer, Robert Ooten, James Ferryman, Gary Monahan Art Perry (absence excused) 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; Marc Davis, Treasurer; Sherry Kallab, Accountant; Denise Gilbert, Permit Processing Specialist; Ron Shef, Ordinance Enforcement Officer Others Present: David Inocente, 4199 Campus Dr., Irvine, Lisa Reedy, Mesa Del Mar Homeowners Association, 2747 San Carlos, Costa Mesa Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting k August 6, 2006 Page 2 Public Hearing - Consideration of Annual Trash Collection Charges to be Collected with the General Taxes Mr. Burns gave a brief overview outlining the process for consideration of annual trash collection charges, explaining Proposition 218 procedural rules will be followed. Mr. Burns read the requirements necessary to follow Proposition 218: "Revenues derived from the fee or charge must not exceed the funds required to provide the property related service. Revenue from the fee or charge must not be used for any purpose other than that for which the fee or charge is imposed. The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership must not exceed the proportional cost of the service attributable to the parcel. The fee or charge may not be imposed for service unless the service is actually used by, or immediately available to, the owner of the property in. question. Fees or charges based on potential or future use of a service are not permitted. Standby charges must be classified as assessments and must not be imposed without compliance with the proportionality requirement for assessments. No fee or charge may be imposed for general governmental services such as police, fire, ambulance, or libraries, where the service is available to the public in substantially the same manner as it is to property owners. The Assistant Manager shall be presenting a report for each charge in which he will document how each of these tests have been met. This report has been made available to the public for their review. Once that report has been presented, you should ask any questions of staff that you might have, then ask the Clerk to provide the status report on whether any protests have been received. The Clerk has provided notice by mail to all parcels subject to the charges. The law provides that if written protests are presented by a majority of the owners of the parcels, the charges may not be imposed. Since only written protests can be considered, staff has developed forms for the use of the protesting owners so that any person wishing to protest tonight can have their vote counted. There are over 17,863 parcels that are subject to the charges being considered tonight. If there is not a sufficient protest, the Board may consider whether or not to impose the charge and adopt the proposed Resolution." Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting August 6, 2006 Page 3 Presentation of Report Mr. Fauth presented a report stating trash collection charges for 2007 -08 are $239.41 per dwelling unit per year. The charge meets the substantive requirements of Proposition 218 as follows: 1. Revenues derived from the fee or charge do not exceed the funds required to provide the trash collection service. The charges are calculated by adding together the cost of components necessary to provide the service and then apportioning this to those receiving trash collection services. No components other than those directly related to providing service are used to establish rates. The components include trash collection, recycling, education and special programs, and administration. 2. Revenue from the fee or charge is not used for any purpose other than for which the fee or charge is imposed. The revenue is to be used only for the components of providing trash collection service as outlined in Paragraph 1 above and as identified in the District's yearly budget. 3. The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership does not exceed the proportional cost of the service attributable to the parcel. The amount of the yearly charge is determined by dividing the cost of all the components of providing service by the number of parcels receiving service, as the vast majority of parcels produce an approximately equal amount of solid waste and all parcels enjoy the benefits of the public education and have an opportunity to participate in the special programs. The District has considered a variable charge program based on the number of trash containers at each residence and those persons will pay added charges in addition to the basic service. 4. The fee or charge is not imposed for service unless the service is actually used by, or immediately available to, the owner of the property in question. Properties not receiving trash collection service or that receive service from other entities providing trash collection, are not charged. 5. No fee or charge is imposed for general governmental services such as police, fire, ambulance, or libraries, but is only imposed for trash services. The District provides only trash collection and sewer service and all fees collected for trash collection are used only for that purpose. Vice President Schafer verified from Joan Revak, Clerk of the District, that all required notices were duly published. Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting August 6, 2006 Page 4 Ms. Revak reported the District received no protests to date from a total of 17,863 parcels notified. Open Public Hearing Vice President Schafer opened the public hearing, requesting each speaker to limit their comments to three minutes and advising participants that, by law, only a written protest will count. The following protests were received: Ms. Lisa Reedy, 2747 San Carlos Lane, Costa Mesa was present at the hearing and filed a written protest to the proposed rate for trash collection. Ms. Reedy, also representing the Mesa Del Mar Homeowners Association, expressed concern related to the Large Item Collection Program and the confusion on the pickup dates for the area and failure to receive door hanger notification of when the large items would be collected. Ms. Revak, Large Item Collection Program Manager, will contact CR &R with regard to the matter and call Ms. Reedy on Tuesday, August 7. Close Public Hearing Vice President Schafer closed the public hearing. • Determination Regarding Protests Vice President Schafer directed Ms. Revak, Clerk of the District, to tally the number of protests. Ms. Revak determined there was 1 protest filed from a total of 17,863 parcels. Vice President Schafer determined the protest failed. Adopt Resolution No. 2007 -737 Confirming and Adopting the Report and Directing Clerk to File with County Auditor Director Monahan motioned to adopt Resolution No. 2007 -737, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA, DETERMINING THAT A MAJORITY PROTEST DID NOT OCCUR WITH RESPECT TO THE PROPOSED CHARGES FOR TRASH COLLECTION, ADOPTING THE REPORT ON FILE WITH THE CLERK OF THE DISTRICT AND DIRECTING THE CLERK TO FILE THE REPORT WITH THE AUDITOR. Director Ooten seconded. Motion carried 4 -0. • • Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting August 6, 2006 Page 5 Public Hearing - Consideration of Annual Liquid Waste Charges to be Collected with the General Taxes Mr. Burns gave a brief overview outlining the process for consideration of annual liquid waste charges. Mr. Burns explained the substantive requirements of Proposition 218 will be met. Mr. Burns read the requirements of Proposition 218: 661. Revenues derived from the fee or charge must not exceed the funds required to provide the property related service. 2. Revenue from the fee or charge must not be used for any purpose other than that for which the fee or charge is imposed. 3. The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership must not exceed the proportional cost of the service attributable to the parcel. 4. The fee or charge must not be imposed for service unless the service is actually used by, or immediately available to, the owner of the property in question. Fees or charges based on potential of future use of a service are not permitted. Standby charges must be classified as assessments and must not be imposed without compliance with the proportionality requirement for assessments. 5. No fee or charge can be imposed for general governmental services such as police, fire, ambulance, or libraries, where the service is available to the public in substantially the same manner as it is to property owners." Presentation of Report Mr. Fauth presented a report on the liquid waste disposal charges for 2007 -08 showing his review of the proposed rate per category, the rates being the total of the base charge plus the fats, oils and grease (FOG) control program recovery fee as shown below: Single family residence per year Multi- family residence per year Commercial w/o food service per year Commercial w /cold food service per year Commercial w /hot food service per year Industrial per year Other per year $56.47 + $2.77 $43.49 + $2.77 $32.85/1000 sf + $2.77 $32.85/1000 sf + $72.00 $32.85/1000 sf + $180.00 $96.77/1000 sf + $2.77 $29.11 /1000 sf + $2.77 Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting August 6, 2006 Page 6 The proposed charges are an increase over the previous fiscal year. The rate increase is necessary due to increases in maintenance and operational costs of the sewer system and to provide additional funding for capital replacement reserves and capital replacement projects. Additional funds are also necessary to operate and maintain the sewer system in conformance with the State Water Resources Control Board's Waste Discharge Requirements (WDR). Additional funds are needed for sewer lateral assistance programs. Mr. Fauth outlined how the charges for liquid waste disposal meet the substantive requirements of Proposition 218 as follows: 1. Revenues derived from the annual sewer fee charges do not exceed the funds required to provide the sewer service. The base sewer charges are calculated by adding together the costs of all the components of providing the service and then apportioning the required funds to each of the properties connected to the system. The components of providing the service include the yearly capital replacement projects, the maintenance and operation costs of maintaining the system and administration costs. A variable level charge was added to each of the property categories to recover a portion of the costs of the comprehensive fats, oils and grease control program that is required under the WDR. These charges are also shown in the Engineer's Report. 2. Revenues from the charge are not used for any purpose other than for which the fee or charge is imposed. No funds collected from the charges are used for expansion or augmentation to the sewer system, only the purposes as designated in the applicable statutes. Similarly, no funds derived from the charges are used for solid waste collection, recycling or administration thereof. 3. The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership does not exceed the proportional cost of the service attributable to the parcel. Each parcel connected to the system falls into a property category type, which has a related estimated maximum sewer flow. The maximum estimated sewer flow is based on actual flow metering tests along with flow rates calculated and established by sewer engineers and adopted by other sewer agencies. These calculations were well documented in Resolution No. 94 -542 which was adopted by the Board in 1994. The total estimated maximum sewer flows and acres of property developed are used to determine the funding contribution from each property category type. Each individual parcel, based on the actual number of residential units or commercial /industrial /other square footage, is assigned its proportional share of the required funds of each property category type. In addition to the base sewer charges, a variable level charge was added to recover a portion of the costs of the new grease control program. The variable rate considers the respective burdens placed on the system by the different users. Therefore, each property contributes its proportional share. 0 Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting August 6, 2006 Page 7 4. The fee or charge is not imposed for service unless the service is actually used by, or immediately available to, the owner of the property in question. Properties are only charged if they are physically connected to the sewer system. Vacant land or properties with storage or other buildings not receiving sewer service are not charged. 5. No fee or charge is imposed for general governmental services such as police, fire, ambulance, or libraries, but is only imposed for ,sewer services. The District provides only trash collection and sewer service and all fees collected as sewer charges are used only for related expenses." Vice President Schafer verified from Joan Revak, Clerk of the District, that all required notices were duly published. Ms. Revak reported the District received 1 protest to date from a total of 24,981 parcels notified. Ms. Revak reported the protest was received from Elsie N. Pauly, 1318 Belfast Avenue, Costa Mesa stating her protest to the proposed increase of the Sanitary District's sewer collection rates charged on her property, Parcel No. 141 -039- 03. Ms. Revak also presented a letter from Orange County Coastkeeper, an environmental organization focused on water quality whose mission is to preserve and protect the marine habitats and watersheds of Orange County through education, advocacy, restoration and enforcement. The letter, dated August 6, 2007, stated "The aging infrastructure throughout Orange County is in need of repair and in many cases replacement. Sewage collection systems are particularly in serious need of repair and retrofitting due to their age and loss of capacity over the years. It is essential that collection systems be upgraded as the result of a sewage spill can have such devastating environmental impacts and costs. As the Board considers raising sewage rates to fund capital projects and infrastructure which will result in SSO reductions, Orange County Coastkeeper would like to voice our support for the rate increase. The result of this action will benefit the District and provide improved service to the District's residents. Coastkeeper appreciates the leadership of the Board in addressing this problem of aging infrastructure and improving service to rate payers. Best regards, Garry Brown, Executive Director". Open Public Hearing Vice President Schafer opened the public hearing, requesting each speaker to limit their comments to three minutes and advising participants that, by law, only a written protest will count. fe Close Public Hearing Vice President Schafer closed the public hearing. Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting August 6, 2006 Page 8 Determination Regarding Protests Vice President Schafer directed Ms. Revak, Clerk of the District, to tally the number of protests. Ms. Revak reported one written protest was presented by Lisa Reedy of 2747 San Carlos Lane, Costa Mesa. Ms. Revak, noting that by law only written protests may be counted, determined there were two protests filed from a total of 24,981 parcels. Vice President Schafer determined the protest failed. Adopt Resolution No. 2007 -738 Confirming and Adopting the Report and Directing the Clerk to File with the County Auditor Director Ooten motioned to adopt Resolution No. 2007 -738, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA, DETERMINING THAT A MAJORITY PROTEST DID NOT OCCUR WITH RESPECT TO THE PROPOSED USER FEE FOR LIQUID WASTE DISPOSAL AND ADOPTING THE REPORT ON FILE WITH THE CLERK OF THE DISTRICT AND DIRECTING THE CLERK TO FILE THE REPORT WITH THE AUDITOR. Director Ferryman seconded. Motion carried 5 -0. ORAL COMMUNICATIONS Vice President Schafer expressed her appreciation to District Staff for their diligent efforts in the rate setting process. ADJOURNMENT At 6:28 p.m., Vice President Schafer adjourned the meeting. Secretary President • 11 • 0 COSTA MESA SANITARY DISTRICT MINUTES OF SEWER SYSTEM COMMITTEE MEETING AUGUST 8, 2007 CALL TO ORDER Board members of the Costa Mesa Sanitary District met in Committee session on August 8, 2007, at 11:00 a.m. at 628 W. 19th Street, Costa Mesa. Director Monahan called the meeting to order at 11:05 a.m. DIRECTORS PRESENT: Gary Monahan, Bob Ooten DIRECTORS ABSENT: Jim Ferryman (absence excused) STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Karl Dulake, Maintenance Supervisor; Paul Guzman, Inspector; OTHERS PRESENT: None CMSD SANITARY SEWER OVERFLOW (SSO) STATISTICS, RISKS AND MAINTENANCE UPDATE Mr. Fauth presented the overall Sanitary Sewer Overflow (SSO) statistics for 2007 which remain unchanged since June 15, 2007 — grease caused five SSOs, tree roots caused one SSO and Other issues such as debris blockage and a pump station bubbler failure caused two SSOs. Of note, zero SSOs have occurred in areas National Plant Services, Inc., (NPSI) have cleaned District main lines. Mr Fauth and Mr Hamers identified recent telemetry issues including the recent loss of a Verizon Cell Tower. This loss limited telemetry to allowing stations to call into the SCADA alarm but did not allow CMSD interrogation of 13 individual pump station Remote Terminal Unit (RTU) sites. TRC validated the status such that there was not a loss in reporting to the SCADA alarm. Director Ooten suggested considering alternative options as backup for the telemetry. Paul Guzman suggested researching the feasibility of using land - lines. Mr Hamers suggested Staff research the possibility of TRC incorporating a signal indicating a COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING AUGUST 8, 2007 PAGE 2 • "COMMUNICATION ERROR" to first responders, if possible, especially for catastrophic failures. Mr Fauth discussed the process for reporting "NO SSOs" and validating the Sewer System Management Plan (SSMP) in the California Integrated Water Quality System (CIWQS). Staff continues to evaluate options to address the highest risk pump station (PS) concerns such as to back -up or potentially replace PS bubbler systems. Mr Fauth presented the "Prioritized Pump Station Retention Times" chart identifying the criticality and hours of wastewater retention by PS. Canyon PS is the most critical with a one hour retention time and 21 st St PS is the least critical with a 10 hour retention time. Mr Fauth and Mr Dulake explained the "CMSD Pump Station Risk Analysis" chart identifying the potential factors from low to high risk and from low to high frequency of occurrence. The factors are categorized and will be placed objectively on the chart. Mr Dulake presented the CMSD Pump Station Maintenance Chart. Director Ooten suggested employing a thermography (Infrared Thermal Imaging) technique to detect heat in control panels. Mr Guzman recommended identifying PSs with and without surge protection. Additional detailed Risk Analysis for preventing PS SSOs will be presented at the August 13, 2007 Sewer System Subcommittee meeting. POTENTIAL TRANSFER OF SEWER LINES FROM OCSD TO CMSD Mr Hamers discussed the potential transfer of two OCSD lines to the CMSD, a 15" line in Bear Street and an 18" line in Avenue of the Arts, with OCSD representatives. This would effectively transfer these lines from a regional large diameter pipe agency to a local agency. A regional agency generally owns and maintains sewer lines with large diameters (greater than 30 inches). Local agencies generally transport sewage to these trunk lines. Discussion centered on historical transfers and the rationale for the transfers. Following CCTV and any required line repairs, the transfer would result in additional revenue for CMSD at little cost for CMSD to maintain the lines. These locations have Food Service Establishments (FSEs) and require Fats Oils and Grease (FOG) management within the CMSD. Director Ooten recommended notifying the site owners of the transfer while the transfer documentation is in development. Mr Hamers will present the topic to the Board at the August 9, 2007 CMSD Regular Board Meeting. CMSD PROJECT #101 - WESTSIDE PUMP STATION ABANDONMENT The two options OCSD costed are as follows: 1. Option 1: $9.0 M for a gravity flow system. 2. Option 2: $6.6 M to rebuild the City of Newport Beach Pump Station and the force main. • r� LJ 0 U COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING AUGUST 8, 2007 PAGE 3 Mr Hamers is preparing the projected CMSD costs. SEWER LATERAL ISSUES Mr Hamers reviewed the purpose of the draft "Sewer Lateral and Clean Out Financial Assistance Program" and accompanying Application to assist residents requiring lateral repairs and clean out installations. The draft states "CMSD will contribute 50% of the residents' costs up to a maximum of $1,800 ". The purpose is to encourage residents to maintain (clean and CCTV) their laterals on a regular basis to achieve zero SSOs. Mr Hamers explained the draft "Sewer Lateral "Surge "" flyer to be distributed to facilities with a history of experiencing or potentially experiencing a surge during CMSD main line cleaning. Staff included the Lateral Assistance program in the 5 -Year Capital Improvement Program for FY 2007 -08 Through FY 2011 -12 at a level $100,000 per FY. Director Monahan recommended press releases for all high visibility District projects such as the Lateral Assistance Program, District website launch, and other Special Programs. CMSD EMERGENCY RESPONSE - DISTRICT YARD UPDATE Staff continues to coordinate with Mr Don Gregg to acquire the site at 174 West Wilson Street. Mr Fauth presented the draft architect site plans from Mr Bob Thornton of RTA, the site architect. The site is envisioned as having a 5,460 SF building on an 18,200 SF lot. The minimum District Yard requirements to respond to SSO emergencies remain as follows: a. Location: Centralized District location for equalized response; b. Lot Size: 9,000 to 12,000 sq ft for outside storage and parking; c. Building Size: 2,500 to 5,000 sq ft for office, hoist repairs and storage; Siting issues include the availability of property, the property zoning (MG needed), the City of Costa Mesa requirement for a conditional use permit (CUP requires 10 -12 weeks to obtain approval) and the four zoning overlays in place. The overlays are: 1. South of Bristol Entertainment, Culture and Arts Urban Plan (SoBECA); 2. Mesa West Bluffs Urban Plan; 3. 19 West Urban Plan; and 4. Mesa West Residential Ownership Urban Plan. Mr Fauth presented the "Annualized CMSD Crew vs Contractor Costs" chart noting the annual cost savings of an in -house crew would be $216,947 over one year and $2,169,470 over a 10 -year period, excluding inflation. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING AUGUST 8, 2007 PAGE 4 • Director Ooten recommended identifying additional "District -owned Yard" cost savings such as fuel savings from contractor co- located equipment parking and document storage savings from the current storage facility. NEXT MEETING The next meeting is scheduled for September 12, 2007 at 10:30 a.m. PUBLIC COMMENTS There were no public comments. ADJOURNMENT Chairman Monahan adjourned the meeting at 12:40 p.m. SECRETARY PRESIDENT • L� l� r • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on August 9, 2007, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: Vice President Schafer ' called the meeting to order at 6:00 p.m. Gary Monahan led the Pledge of Allegiance. Mr. Fauth gave the invocation. Arlene Schafer, Bob Ooten, Gary Monahan, James Ferryman Art Perry absent and excused 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; Marc Davis, Treasurer; Sherry Kallab, Accountant; Karl Dulake, Maintenance Supervisor; Denise Gilbert, Public Outreach Coordinator; Ron Shef, Ordinance Enforcement Officer OTHERS PRESENT: Mr. Dan Worthington, 2963 Mindanao Drive, Costa Mesa Bob Thornton, P.O. Box 15112 Newport Beach Norma Fernandez, CR & R, Stanton 0 Royden Fujimori, CR & R, Stanton Dean Ruffridge, CR & R, Stanton Ms. Gina Fauth COSTA MESA SANITARY DISTRICT k+' MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 2 . ............................... CONSENT CALENDAR . ............................... Director Ooten motioned to approve the Consent Calendar as presented. Director Monahan seconded. Motion carried 4 -0. REPORTS MINUTE APPROVAL Minutes of Recycling The Minutes of the Recycling Committee Meeting Committee Meeting — of July 9, 2007, were approved as distributed. July 9, 2007 Minutes of Regular The Minutes of the Regular Meeting of July 9, Meeting — 2007, were approved as distributed. July 9, 2007 Minutes of the Sewer The Minutes of the Sewer System Committee System Committee Meeting of July 11, 2007, were approved as Meeting — distributed. July 11, 2007 Minutes of City /District The Minutes of the City /District Liaison Committee Liaison Committee Meeting of July 13, 2007, were approved as Meeting — distributed. July 13, 2007 MANAGER'S REPORTS REFUNDS There were no refunds for the month of August 2007. Occupancy Report and The Trash Occupancy Count documented an Payment of $195,797.38 increase of 3 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of August 1, 2007. August 2007 Therefore, the total for August is 21,386. Board directed Staff to prepare a warrant for $195,767.38 for August 2007 collection based on occupancy report. Said payment in the amount of $195,797.38 to Costa Mesa Disposal to be ratified on the September 2007 warrant register. • `J • • COSTA MESA SANITARY DISTRICT " = MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 3 Monthly Spill Report to The Monthly Spill Report to the State Water State Water Resources Resources Board (SWRCB) for July 2007 was Control Board accepted as submitted. Additional Container The Additional Container Program report for July Program Report 2007 was approved as distributed. ENGINEER'S REPORTS Project Status Report The Project Status Report dated August 2007 was accepted as submitted. TREASURER'S REPORTS Financial Report as of The Financial Report as of June 30, 2007 was June 30, 2007 accepted as submitted. Financial Report as of July The Financial Report as of July 31, 2007 was 31, 2007 . accepted as submitted. Treasurer's Report as of The Treasurer's Report as of July 31, 2007 was July 31, 2007 accepted as submitted. Warrant 2008 -02 for July Warrant Resolution #CMSD 2008 -02 was 2007 in the amount of approved, authorizing the President and Secretary $687,694.19 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 $687,694.19. Directors Expenses for the Director Compensation and Expense Month of July 2007 Reimbursements for the Month of July 2007 were approved and ratified as follows: Director Ferryman: $340.00 President Perry: $680.00 Vice President Schafer: $1020.00 + $14.85 Director Ooten: $510.00 Director Monahan: $680.00 .......................... END OF CONSENT CALENDAR ......................... COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 4 0 WRITTEN COMMUNICATION Ms. Revak reported a letter was received from Henry and Barbara Panian, dated July 14, 2007, thanking the District for the opportunity to attend the tour consisting of the Materials Recovery Facility in Stanton and the Frank Bowerman Landfill. Mr. and Mrs. Panian stated they were impressed with the practices of the District to reduce the amount of trash that ends up in the landfill. Ms. Revak reported a letter was received from C.E. Tygart, dated July 25, 2007 expressing frustration at the proposed Board compensation increase. PUBLIC COMMENTS Mr. Worthington stated he would like to comment on the Bowerman Landfill tour and would hold his comments until the item is discussed under Recycling Reports. MANAGER'S REPORTS DISTRICT YARD POSSIBLE CLOSED SESSION TO DISCUSS REAL PROPERTY NEGOTIATIONS (PRICE, • TERMS) PURSUANT TO GOVERNMENT CODE SECTION 54956.8 REGARDING THE FOLLOWING PROPERTIES: 174 WILSON STREET WITH DAVID JACKSON HESTER, SR. 1780 WHITTIER AVENUE WITH THE WARD FAMILY Mr. Hamers introduced Mr. Robert Thornton, architect, who described a possible site plan and floor plan for the property at 174 Wilson Street. Mr. Thornton previously met with various members of the City of Costa Mesa regarding the property and outlined the City's restrictions and requirements for the site. Discussion was held regarding the conditions required for a CUP and the possibilities for the site. Mr. Thornton stated during his conversations with the City, they reviewed an older aerial and determined there had once been a home on the property. Mr. Hamers requested a copy of the aerial. Mr. Thornton stated he would obtain a copy of the aerial for Mr. Harriers. Mr. Thornton left the meeting at 6:23 p.m. 0 V • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 5 Vice President Schafer stated the Board will continue discussion on a District Yard in closed session at the end of the Regular Meeting. CMSD STRATEGIC PLAN YEAR 2007/2008 STRATEGIC PLANNING ACTION ITEMS Mr. Hamers stated a copy of the updated Strategic Planning Action Items was included in the Board packet and invited questions from the Board. Director Ooten suggested Mr. Bill Morris be invited to the next City /District Liaison Committee Meeting. Director Monahan stated Mr. Allan Roeder determines who attends the meetings. CR &R ANNUAL REVIEW Mr. Fauth reviewed a preliminary copy of the CR &R Annual Review. Mr. Hamers requested Mr. Ruffridge and Staff answer Board's questions, but suggested an additional meeting would be necessary to fully review CR &R's responses to the preliminary review copy. Mr. Ruffridge reported he and Mr. Fauth met to discuss the unsatisfactory items in the review and stated he hoped those were resolved in discussion. Mr. Ruffridge stated he anticipated a satisfactory review once the financials were presented and his comments to the preliminary review were considered. Mr. Fauth stated a complete package, including comments, would be distributed to the Board prior to the September meeting. Mr. Hamers inquired whether the Board would like a Special Meeting to discuss the details with CR &R or whether they would like Staff and CR &R to work through the issues and come back to the Board with a report. The Board determined they would prefer Staff meeting with CR &R to work through each item and provide a final report to the Board. Director Ooten stated he would like to discuss the large item collection for the forthcoming year. Mr. Hamers set a meeting date of August 15, 2007 at 10:00 a.m. for Staff and CR &R to finalize the Annual Review components. Director Monahan stated he received a comment from the Mesa Del Mar Homeowners Association President regarding the large item collection notifications. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 6 is Ms. Fernandez reported she and Mr. Fujimori visited the Mesa Del Mar homes to mitigate the situation. Mr. Ruffridge, Ms. Fernandez, and Mr. Fujimori left the meeting at 6:35 p.m. SEWER SYSTEM COMMITTEE REPORT ON COMMITTEE MEETING HELD JULY 11, 2007 Director Monahan reported the Committee met on July 11, 2007. Director Monahan congratulated Staff on the fact that there were no spills for the month of July. Mr. Monahan reported the Committee discussed the potential transferring of sewer lines from OCSD to CMSD near the Performing Arts Center and other areas of the District. Discussion was held regarding OCSD vacating the lines to CMSD thereby allowing CMSD to collect fees for the lines. Mr. Hamers provided a brief history of the lines and stated the lines are in the middle of the CMSD service area and OCSD is ready to transfer the lines. Mr. Hamers reported Staff is in the process of identifying the remainder of the local lines that are currently OCSD lines within CMSD jurisdiction for potential to CMSD. Board directed Staff to continue working with OCSD in their efforts to identify the sewer lines for transfer and bring back a formal agenda item at the September regular meeting. Director Ferryman stated he attended an OCSD Strategic Planning Committee Meeting and stated the pump station on Ellis will require redirecting lines on the west side of Orange County for the Groundwater Replenishment System. Board directed Staff to write a letter to OCSD requesting them for formalization of the regional facility project in their long term planning and present it to the Board for approval at the September regular meeting. Mr. Hamers reported Staff is still updating their original cost estimates for the CMSD sewer lines leading from the pumping stations proposed for abandonment to the regional facility. Director Monahan reported the Sewer Assistance Program is ready to go. Mr. Burns will present the item in the next regular agenda. Mr. Hamers reported Staff can begin entertaining requests for reimbursement and the website will be modified to include details. A press release will also be sent. Mr. Hamers suggested putting the full agenda of the Sewer System Committee on the regular meeting agenda. J COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 7 Mr. Fauth provided a brief description of a matrix he developed, Annualized CMSD Crew vs. Contractor Costs. The matrix listed costs for an in -house crew versus hiring an outside contractor and projected the costs to show a two -, five -, and ten -year savings. STATUS OF CMSD WEBSITE Ms. Revak reported the website was launched on July 20, 2007. There are still a few additional items to be added to the site. Mr. Hamers requested Board members review the site and provide feedback to Staff. Mr. Fauth described the on -line sewer atlas for residents to view their own sewer lateral locations. RECYCLING REPORTS WASTE DIVERSION REPORT - JUNE 2007 Ms. Revak presented the Waste Diversion Report for July 2007 showing a 50.43% diversion rate. Director Ooten motioned the Waste Diversion Report be received and filed. Director Monahan seconded. Motion carried 4 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR JULY 2007 SERVICES Ms. Revak presented the Invoices for July 2007 recycling services and disposal. Director Monahan motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of July 2007 in the amount of $194,273.04. Director Ooten seconded. Motion carried 4 -0. Director Monahan motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of July 2007 in the amount of $10,298.82. Director Ooten seconded. Motion carried 4 -0. ORDINANCE ENFORCEMENT OFFICER'S REPORT Mr. Hamers requested Mr. Shef's attendance at the meeting with CR &R on August 15, 2007, at 10:00 a.m. Mr. Shef provided a report for the period of July 2007. Mr. Shef reported more than 20 courtesy notices were distributed due to noncompliance. COSTA MESA SANITARY DISTRICT 3 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGES �1 LJ Mr. Shef reported there had been some problems with the Large Item Collection. Vice President Schafer requested Mr. Shef discuss having the drivers make an effort to make sure the lids are closed when the containers are placed back after dumping into the truck. Mr. Hamers requested Mr. Shef make a list of all items where CR &R is doing well as well as items that need improvement for discussion at the August 15 meeting. Mr. Fauth reported requesting police assistance at a site on Santa Isabel. The site is a construction site where they have been repeatedly filling containers with construction materials for collection by CMSD. Mr. Fauth requested Costa Mesa Disposal remove the twelve containers from the construction site. Mr. Fauth reported the owner of the facility resisted in allowing the removal of the containers. With police assistance, Costa Mesa Disposal was successful in removing the containers. Mr. Shef reported the small remodeling projects occurring throughout the District where residents fill the containers with construction material are difficult to detect. UPDATE ON MONITOR VIDEO - REVISED SCHEDULE Mr. Fauth reported he will be arranging with Monitor Video for various location • opportunities for video filming. The projected completion date has been revised to the end of November. UPDATE ON RECEPTIONIST, ACCOUNTING SPECIALIST, MANAGEMENT ANALYST AND MAINTENANCE WORKERS RECRUITMENT PROCESS Ms. Revak reported she and Mr. Fauth conducted interviews over the past week for the receptionist position and offered the position to Ms. Janelle Jackson. Ms. Jackson will begin work on August 27, 2007. Mr. Fauth reported interviews were conducted for the position of Accounting Specialist and expects a decision to be made by August 10, 2007. Mr. Fauth anticipates hiring the maintenance workers by January 2008 for hotspot cleaning with on- the -job training until June 2008. 0 • Ll • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 9 TRANSMISSION OF YEARLY SEWER AND TRASH CHARGES TO THE COUNTY AUDITOR - CONTROLLER Mr. Hamers reported the roll of charges is in the process of being completed and will be transmitted to the auditor - controller. Mr. Hamers reminded the Board there were only two written protests for sewer and one for trash. RECYCLING COMMITTEE — MONDAY, AUGUST 6, 2007 —12:00 P.M., CMSD BOARDROOM, 628 W. 19T" STREET, COSTA MESA (DIRECTORS OOTEN AND FERRYMAN) RECYCLING COMMITTEE GOALS FOR 2007/2008 Director Ooten reported the Recycling Committee met on August 6, 2007, and reviewed the recycling goals. LARGE ITEM COLLECTION - JUNE 11, 2007 - AUGUST 24, 2007 Director Ooten reported the Large Item Collection began on June 11, 2007 and will run until August 24, 2007. As of July 31, 260.88 tons were landfilled at a total cost of $4,711.55. Recyclable White Goods collected during this period totaled 61.08 tons for a credit of $5,191.75, amounting to a net credit to -date of $480.20. IWMD RECYCLING & WASTE DIVERSION GRANT PROGRAM Director Ooten reported the Committee discussed writing a letter to Jim Wahner, Dan Worthington, and Margie Rice thanking them for their support in the District's effort to have the Integrated Waste Management Department understand there are several jurisdictions in Orange County where the City is not the primary trash collector. The Costa Mesa Sanitary District is working toward a possible award of $30,000 in grant monies. Director Ferryman motioned to have Staff write a letter thanking Mr. Jim Wahner, Mr. Dan Worthington, and Ms. Margie Rice for their efforts in supporting the Costa Mesa Sanitary District to the Integrated Waste Management Department for recognition for the Recycling and Waste Diversion Grant Program. Director Monahan seconded. Motion carried 4 -0. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 10 U TOUR OF CR &R RECYCLING FACILITY AND FRANK R. BOWERMAN LANDFILL Mr. Dan Worthington provided a list of suggestions to the Board regarding future tours. ❑ Itinerary and literature regarding items seen on the tour that the visitor can review during the day and take home ❑ A Board Member participating on the tour and available for questions from group members ❑ A boxed lunch and beverages if the tour extends beyond lunch time ❑ Show workers removing items from the conveyor belt Mr. Fauth reported CR &R now only removes non - recyclable items from the conveyor belt as opposed to the recyclable items as in the past. CR &R also has certain proprietary systems that are not available for viewing. GUEST - DONNA THERIAULT, CITY OF COSTA MESA Director Ooten. reported Ms. Theriault was a guest at the meeting and described her presentation and information provided. ORANGE COAST COLLEGE RECYCLING CENTER COLLECTION OF E -WASTE • Mr. Hamers reported Orange Coast College Recycling Center is waiting for their approval from the state. Director Ooten reported he is going to present the acknowledgement letter of Mr. Mike Carey's services to the Orange Coast College Recycling Center to the Board of Trustees. ENGINEER'S REPORTS GENERAL WASTE DISCHARGE REQUIREMENTS (GWDR) Mr. Harriers reported the District has an excellent sewer system committee and sub - committee and thanked the Board for their involvement. 2007 -2008 CAPITAL IMPROVEMENT PROGRAM REPORT - INDEPENDENT ENGINEERS REVIEW Mr. Harriers presented the Independent Engineer's Review by Mr. Bruce Mattern and invited any questions from the Board. Director Monahan motioned to approve the Independent Engineer's Review for the 2007 -2008 Capital Improvement Program Report. Director Ferryman seconded. Motion carried 4 -0. COSTA MESA SANITARY DISTRICT u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING Y - AUGUST 9, 2007 PAGE 11 PROJECT #129 — THREE PARTY AGREEMENT BETWEEN CMSD, OCDA, AND CITY OF NEWPORT BEACH Mr. Hamers reported he received some comments from OCDA and will review them before submitting them to Mr. Burns. Mr. Hamers reported Staff is still in the process of updating the cost estimate. MEMORANDUM OF UNDERSTANDING WITH IRVINE RANCH WATER DISTRICT Mr. Hamers reported Mr. Burns, Mr. Fauth, and he will be meeting with the General Manager of Irvine Ranch Water District on August 10, 2007. TREASURER'S REPORTS Mr. Davis had no item to report. ATTORNEY'S REPORT ASTIN, LOCKE V CMSD (SUP. COURT CASE NO. 06CC05755) STATUS REPORT (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A Mr. Hamers stated he met with the City Attorney to discuss the case. Mr. Burns will follow up on the dismissal. CMSD RESOLUTION NO. 2007 -739, ORDERING THAT PUBLICATION OF ORDINANCE NO. 58 SETTING FORTH A PROCEDURE FOR THE REIMBURSEMENT OF MISCELLANEOUS EXPENSES HAS OCCURRED. Mr. Burns introduced Resolution No. 2007 -739, a RESOLUTION OF THE BOARD OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 58 SETTING FORTH A PROCEDURE FOR REIMBURSEMENT OF MISCELLANEOUS EXPENSES HAS OCCURRED. Director Monahan motioned to adopt Resolution No. 2007 -739. Director Ferryman seconded. Motion carried 4 -0. CMSD RESOLUTION NO. 2007 -740, ORDERING THAT PUBLICATION OF ORDINANCE NO. 59 INCREASING DIRECTOR COMPENSATION HAS OCCURRED Mr. Burns introduced Resolution No, 2007 -740, a RESOLUTION OF THE BOARD OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 59 INCREASING DIRECTOR COMPENSATION HAS OCCURRED. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 12 Director Ooten motioned to adopt Resolution No. 2007 -740. Director Ferryman seconded. Motion carried 4 -0. LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS REPRESENTATING CMSD) ORANGE COUNTY SANITATION DISTRICT (OCSD) MEETING HELD JULY 25, 2007 (DIRECTOR FERRYMAN) Director Ferryman attended the July 25, 2007 OCSD meeting and reported they discussed the following: ❑ Four workshops being held ❑ Biosolids - technologically advanced solutions - recycled composting materials. ❑ Director Ooten to suggest City of Costa Mesa participate in recycled compositing program during City /District Liaison Committee Meeting SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) DUES FOR FY 2007 -2008 IN THE AMOUNT OF $1,100.00 0 Director Ferryman motioned to approve dues for the Santa Ana River Flood Protection Agency in the amount of $1,100.00. Director Ooten seconded. Motion carried 4 -0. Director Ferryman attended the SARFPA meeting and reported 100 million dollars will be needed to complete the SARI line. INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER QUARTERLY MEETING -THURSDAY, AUGUST 30,200711:30 A.M. AT IRVINE RANCH WATER DISTRICT Vice President Schafer encouraged Board Members to attend the Quarterly Meeting on Thursday, August 30, 2007. Director Schafer attended the ISDOC meeting on July 10, 2007 and reported the following: ❑ Vice President Schafer provided reports on LAFCO and CSDA. ❑ Sandra Jacobs, Region 10 Water, spoke on Prop 59 11 David Cordero spoke on legislation being considered in Sacramento COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 13 i LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER) LAFCO COSTS FOR FY- 2007 -2008 IN THE AMOUNT OF $17,747.27 Director Monahan motioned to approve the CMSD's share of LAFCO costs for FY- 2007 -2008 in the amount of $17,747.27. Director Ferryman seconded. Motion carried 4 -0. Director Schafer attended the July 18, 2007, LAFCO meeting and reported the following: ❑ Costa Mesa and Newport Beach on the public hearing for West Santa Ana Heights ❑ City of Tustin on Municipal Service Review and Sphere of Influence ❑ Northwest Orange County Sphere of Influence Study ❑ Northwest Orange County - Buena Park, La Habra, and Placentia ❑ South Orange County on hearing for Municipal Service Review and Sphere of Influence - Aliso Viejo, Dana Point, Laguna Beach, Laguna Hills, Laguna Woods, Lake Forest ❑ El, Toro Water District, Laguna Beach County. Water District, Moulton Niguel Water District, South Coast Water District, Capistrano Bay Community Service District, Emerald Bay Service District, Three Arch Bay Community Service District, all Special Districts. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER) Director Schafer attended the July 12 -13, 2007 CSDA meetings and reported the following: ❑ Sacramento - Finance Corporation Meeting ❑ Executive Board Evaluation on CEO ❑ Board of Directors Meeting for CSDA and reports Director Ferryman motioned to support Arlene Schafer for CSDA Candidate representing Region 6. Director Ooten seconded. Motion carried 4 -0. Ms. Revak will forward the District's ballot supporting Ms. Schafer's re- election to Region 6. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE N. 55, OPERATIONS CODE SECTION 3.01.030 CHAMBER OF COMMERCE Vice President Schafer reported she attended the Chamber of Commerce Meeting on July 11, 2007, and reported an update on bills of interest to Orange County and California. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 14 Director Schafer attended the July 6, 2007 meeting and reported the following: ❑ "Preparing for a Chemical or Biohazard Attack in Orange County - What Role Can Cities and Water Districts Play in a Countywide Response ?" There was no old business discussed. NEW BUSINESS SDRMA ELECTION OF THREE CANDIDATES FOR THE BOARD OF DIRECTORS CMSD RESOLUTION NO. 2007 -741 FOR THE ELECTION OF DIRECTORS TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY BOARD OF DIRECTORS Vice President Schafer discussed her recommendations for SDRMA. Director Monahan motioned to approve Vincent Ferrante, John Woolley, and Bill Miller for SDRMA. Director Ferryman seconded. Motion carried 4 -0. Ms. Revak will forward Resolution No. 2007 -741 to SDRMA. WEFTEC 80TH ANNUAL WATER ENVIRONMENT FEDERATION TECHNICAL EXHIBITION AND CONFERENCE - OCTOBER 13-17,2007 Director Monahan motioned to approve attendance by Director Ooten at the WEFTEC 80th Annual Water Environment Federation Technical Exhibition and Conference - October 13 -17, 2007. Director Ferryman seconded. Motion carried 4 -0. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Dan Worthington reported he will be visiting trash incinerating systems and offered to arrange a tour for any Board member. Dan Worthington reported Integrated Waste Management will be looking at recycling of plastic bottles. • COSTA MESA SANITARY DISTRICT i MINUTES OF BOARD OF DIRECTORS REGULAR MEETING AUGUST 9, 2007 PAGE 15 • Vice President Schafer adjourned the meeting to closed session at 7:55 p.m. to discuss Real Property Negotiations (price, terms) pursuant to Government Code Section 54956.8. At 8:30 p.m. Vice President Schafer reconvened the regular meeting and announced the Board of Directors gave negotiating authority to Assistant Manager Tom Fauth for the property at 174 Wilson Street, Costa Mesa. ADJOURNMENT Vice President Schafer adjourned the meeting 8:33 p.m. SECRETARY • • RESIDENT • • • WDR Reported Spill Data OCCURRENCE REPORT SUMMARY 9/4/2007 9/4/2007 Date Sanitary Sewer Overflow Occurrence Report Summary, 2007 SSO EVENT ID Private District Est Total Spill Completely Event Line Line # Gallons Contained ? Uncontained Est # Private Gallons Spilled Uncontained Est # Public Gallons Spilled into Storm drain into Storm drain 2/20/2007 Debris /Ras blocked Residential Main Line; 2069 President Place 647140 113 N 19 3/24/2007 Gisler Pump Station Air Bubbler Failed - Re laced - 3003 Iowa St 648508 38 N 38 4/3/2007 Tree Roots Blocked District Main Line, 241 E 19th St 648882 150 Y 4/4/2007 Grease Blocked PRIVATE Lateral CA Wok - 3033 Bristol St 648962 28 Y 4/10/2007 Pushed -In Grease /Roots blocked Main; 2213 American Avenue 649201 122 N 12 4/21 -22/07 Grease Blocked Private Lateral /MH; 1400 Bristol St Travelod e 649697 119 Y 5/28/2007 Grease Blocked Main at Sandwich Shop @ 1599 Superior Ave 651145 4 Y 6/15/2007 Grease, Paper, Debris Blocked Easement Main Line @ 1571 Indus St 652368 50 Y 9/4/2007 Unknown CMSD Main Line Blockage; 772 W 16th St; 656833 200 N 50 9/4/2007 Unknown CMSD Main Line Blockage ; 1599 Superior Ave; 656834 20 Y KEY: GREASE 5 2 3 ROOTS 1 1 OTHER 4 4 TOTALS 101 2 j 8 Total # Gallons 8441 1 725 0 119 Percentages 100.00% 1 85.90% 0.00°r 14.10% CMSD Staff: 949 - 645 -8400 1 of 1 COSTA MESA SANITARY DISTRICT MINUTES OF HUMAN RESOURCES MEETING AUGUST 22, 2007 The Costa Mesa Sanitary District Staff met at 11:00 p.m. at 628 W. 19th Street, Costa Mesa. Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Sherry Kallab, Denise Gilbert, Debbie Bjornson, Kaitlin Tran, Karl Dulake, Ron Shef CMSD Staff met to discuss human resources issues. I. HEALTH BENEFITS Discussion was held on "health benefits" available to CMSD employees. Ms. Kallab reported there will be an increase in health premiums as she previously • notified Staff via email. Blue Shield is offering another option in their HMO coverage and employees can access information on the plans available through the Blue Shield website. Informational packets are also available from Ms. Kallab. II. UPDATE ON RECEPTIONIST, ACCOUNTING SPECIALIST, MANAGEMENT ANALYST AND TWO MAINTENANCE WORKER POSITIONS Mr. Fauth reported he and Ms. Revak interviewed candidates for the Receptionist position and extended an offer to Ms. Janel Jackson. Ms. Jackson's start date is Monday, August 27, 2007. Interviews for the Accounting Specialist position were also held and Ms. Kaitlin Tran was hired for the part -time position. The Management Analyst job description is written and Staff is ready to advertise the position. Discussion was held on office space available for the employee. Discussion was held on hiring two Maintenance Workers. Uniforms are required for the workers and there are other OSHA requirements 4) 0 III. RESPONDING TO REQUESTS FROM ONE DIRECTOR Costa Mesa Sanitary District Minutes of Staff Meeting March 15, 2006 Page 2 Mr. Hamers requested Staff to inform him of requests from a Director for information related to the District. The Operations Code, Section 3.01.100 was referenced, stating, "Requests for information may be made by individual Board members and will be responded to unless the Manager determines that it would involve an inordinate amount of time, in which case he may ask that the item be placed on the agenda for full Board action." Additionally, the Operations Code states "Copies of materials prepared for one Director shall be distributed to all Directors. Board members should only direct staff to take action when done as part of Board action during a meeting. Any Board member shall have the right to have such matters placed on the agenda for discussion." IV. PERFORMING "OTHER DUTIES AS ASSIGNED" Discussion was held on requests to employees to perform tasks not specifically referenced in their individual job description and each employee understands there may be circumstances requiring them to assist in a task not spelled out in their job description. A Staff member requested they be given a deadline date for completion of a project when the task is given to them. V. PERSONNEL EVALUATIONS STATUS Mr. Fauth reported only two "Self- Appraisal" documents have been received by him. The appraisals are due to the Assistant Manager by June 1 for the current fiscal year to assist in completing the annual evaluations for each employee. The evaluation dates for the Maintenance Supervisor and the Accountant are different as they did not transfer from the City on July 1, 2004. The next Human Resources meeting will be held on Friday, November 16, 2007 at 10:00 a.m. The meeting was adjourned at 11:00 a.m. Protecting our community's health by providing solid waste and sewer collection services. crosdca.nov • • C: COS MESA SA�iTAJZYDi TA srRrcr PROJECT STATUS REPORT September 2007 Project 1 1 1 21 00 -1 01 West Side Pumping Station Abandonment Study Directors Ferryman and Ooten along with Manager /District Engineer Rob Hamers, Assistant Manager Tom Fauth and Inspector Paul Guzman met with OCSD General Manager Jim Ruth and executive engineering staff on March 29, 2007 to discuss OCSD's participation in the project. It was agreed that the two agencies will work together to determine an approximate project cost and then meet again to discuss the feasibility. The cost estimate has been prepared and is being considered by both agencies. After the CMSD updates its costs for constructing the gravity lines from the pumping stations to be abandoned to the "regional facility," the CMSD will request another meeting with OCSD. Project 1112100-129 Bristol Street Sewer The County of Orange plans on widening Irvine Avenue from Bristol Street to University Drive, which will cause relocation of the CMSD Irvine 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 has been signed by the Sanitary District and is at the City of Newport Beach for approval. Proiect 1112100-135 Reconstructing Force Main for Elden Pumping Station (Phase II) Construction was completed in 1995 and the State Department of General Services (DGS) finally transmitted the sewer easement for recording at the CMSD regular meeting of September 2007. Project 1112100-159 Televising Sewer Lines Areas are televised as needed, particularly for the yearly fats, oils, and grease (FOG) program. Project 1112100-168 Irvine Pumping Station Remodel or Relocation Bid opening was June 4, 2007, and the Board awarded the construction contract to Vadnais Corporation and constructed is scheduled to begin the last week of August 2007. Project 1112100-171 Irvine Pumping Station Force Main Rehabilitation Phase I The design phase is continuing. Project 1112100-175 OCSD Cooperative Projects Grant - Televising CMSD Sewer Lines 0 The televising is continuing and is approximately 60% complete. Protect 1112100-180 WDR Grease Control Program Phase IV The project is underway. L` • Protecting our community's health by pmviding solid waste and sewer collection services. crosdcagov Costa Mesa Sanitary District Minutes of Safety /Loss Control Committee Meeting August 22, 2007 Present Rob Hamers Tom Fauth Joan Revak Debbie Bjornson Karl Dulake Paul Guzman Joe Limon Absent Discussion: Manager /District Engineer Assistant Manager Board Secretary/Program Manager /Clerk of the District Permit Processing Specialist Maintenance Supervisor CMSD Inspector CMSD Inspector • 1. Pumping Station High Water Alarms Mr. Dulake, Mr. Fauth and Mr. Hamers agreed that improving the telemetry system reporting of high water conditions in the pumping stations is a high priority. Mr. Dulake stated the small bubbler air pumps are no longer manufactured and recommended switching to the pressure sensor reporting system. It was agreed to begin converting the stations to pressure sensors with a mercury float switch backup for high water conditions. 111. Inverted Sewer Siphon Seminar Mr. Hamers is hosting a regional seminar on inverted sewer siphon design and maintenance on September 20, 2007 as part of his work on the regional WDR steering committee. Mr. Dulake will be speaking at the seminar as well. Mr. Hamers recommended certain Safety Committee members attend the seminar. III. New Maintenance Workers A meeting was scheduled for October 24, 2007 to discuss the forthcoming two new maintenance workers who will constitute the District's sewer cleaning crew. Items discussed will be safety equipment, uniforms, standby hours and pay, etc. n Safety /Loss Control Committee Minutes IV. "Surge" Flyer August 22, 2007 Page 2 Mr. Hamers and Mr. Fauth are searching for graphics to add to the flyer, at which time the flyer will be finalized and copies kept on the sewer cleaning trucks in order to explain the event should a surge occur. V. Adjusting Sewer Manholes to Grade Mr. Dulake has assembled a list of sewer manholes that need to be adjusted to grade in order to be flush with the street surface. Mr. Fauth is reviewing the list, after which Mr. Fauth and Mr. Hamers will approve the work. VI. Fall Newsletter Mr. Hamers will begin preparing the District's fall newsletter that is dedicated to sewer matters. The committee recommended that an article requesting residents and business to insure baby wipes are thrown in the trash instead of the sewer be included. These fibrous items are a known cause of pump impeller problems. VII. Safety Meetings Mr. Dulake reviewed the daily pre -work safety meetings held by National Plant Services during the "clean and televise" project as well as the weekly safety meetings held by Jimni Systems, the pump station maintenance contractor. VIII. District Yard The Committee reviewed the counter offer made by the seller of 174 Wilson Street and will place the matter on the September 2007 regular meeting agenda. The Committee also discussed 2034 Placentia Avenue and potential other locations for a District yard. The next meeting is scheduled for Friday, November 16, 2007 at 11:00 a.m. Distribution: CMSD Safety Committee Members CMSD Board of Directors at September 2007 regular meeting SDRMA INI • I� U C7 Robert Thornton Architects, Inc. P.O. Box 1512 m Newport Beach z CA 92659 -1512 (949) 650 -9876 ■ FAX (949) 215 -5927 September 12, 2007 Robin B. Hamers Manager/ District Engineer Costa Mesa Sanitary District 628 W. 19th Street Costa Mesa, CA 92627 -2716 RE: Costa Mesa Sanitary District corporate yard at 174 Wilson, Costa Mesa, CA. Dear Mr. Hamers, The leadership in energy and environmental design (LEED) green building rating system is the nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED promotes a whole - building approach to building design by recognizing performance in five key areas of human and environmental health. These areas include: Site design: Proper site selection, i.e. building use is compatible and complimentary with surrounding uses, providing bicycle storage for building users, provide fuel efficient vehicles for 3% of full time employees or provide parking for preferred parking for low - emitting fuel efficient vehicles. Providing parking spaces for car pool participants, maximize open space, managing storm water runoff. Non - reflective roof and hardscape materials. Water savings: Use of drought tolerant plants and use of dry type bathroom fixtures. Energy efficiency: Verify that the building's energy related systems are installed and working efficiently, design the building systems to maximum energy efficiency. Use of solar panels. Commission an accredited third party review and oversee project. Material selections: Increase the demand for building products that incorporate recycled materials. Increase the demand for building materials and products that are extracted and manufactured within the region. Use of certified wood { products, which encourages environmentally responsible forest management. Indoor Enviromnental Quality. Prohibit smoking in or around the building, Provide additional outdoor air ventilation to improve air quality. Keep mechanical duct and equipment free from construction dust, after construction ends, prior to occupancy perform a building flush out by supplying air to inside spaces. Use of low emitting adhesives, sealants, paints, carpets and wood products. Controllability of lighting and heating /cooling systems, use of daylight as light source. The LEED program has 4 levels of accreditation. The lowest level is silver, followed by gold and Platinum being the highest accreditation level. We are striving for the "Gold" accreditation level. We met with Khanh Nguyen: Chief Building Official, Burt Morgan: Chief Plans Examiner and Willa Bouwens - Killeen: Principal Planner this week for a review of the preliminary floor plan and site plan designs. Our intent was to get their opinions on costs attributed to building green. Khanh has prepared a build it green incentive program which states that a project striving for the "LEED" gold standard could encounter an 8% increase in construction costs. Khanh stated that the 8% was a rough estimate and in smaller projects the costs could be higher because there would be less construction costs to spread the costs over. In figuring costs attributed to going green, building owners should concentrate on the " life span costs" as that is where the savings and benefits are realized. As we looked specific components of the projects it was apparent that most of the building components would not bring along with them a substantial cost difference. Below is a list of the building components discussed in the meeting and their influence on costs and environmental impact: Foundation: use of an ash compound in the concrete. Ash is a recycled source. Insulation in the walls: Use of recycled cotton. Interior walls: Metal walls are considered a recycled product. Exterior Windows: use of exterior window shading system. Exterior walls: Block (CMU) is a local resource. No cost increase. Bathroom: The use of dry fixtures already in use at the CMSD office. Landscape: Drought tolerant California native species, watered by using treated water from the building and rainwater. Use of wood chips from recycled trees. 1 Hardscape: concrete driveway and parking lot is more reflective that asphalt paving and more environmentally friendly. The use of pervious pavers or other pervious materials that allows water to be absorbed on site rather that going to storm sewers. Mechanical and electrical systems: Title -24 energy requirements in California are stricter than most states, making the current requirements in line with LEED high- energy standards and requirements. The thought is to calculate the needs of the building and provide the most efficient system to meet those needs, i.e. don't put a 20 ton heating and cooling unit on the roof when a 5 -ton unit will work. Roofing: the used of solar collectors, which would have the biggest initial start-up costs but in turn would save costs over the lifetime of the building. Vegetated roof where 2'x2'xY plant flats are placed on the roof creating a solar buffer from the sun. This benefit is two -fold by protecting the built -up roof system and blocking the sun from heating the building, cutting cooling costs. In conclusion it seemed that the biggest start up cost item would be solar panels and a water treatment system for gray water. Designing with the components listed above would help us strive for the gold certification. Although the start up construction costs are increased by going green it was apparent that 8% may be high and the benefits out weight the initial costs by making a positive impact on the public health and the environment, it also reduces operating costs for the life of the building. As the green building sector grows exponentially more and more building professionals, owners, and operators are seeing the benefits of green building and the LEED certifications. Sincerely, ti Bob Thornton Robert Thornton Architects, Inc. SUBJECT: DRAFT COUNCIL POLICY NO.. 500 -14 "SUSTAINABLE MUNICIPAL,GREEKPQLICY" DATE: AUGUST 27; 2,007 FROM: DEVELOPMENT SERVICES DEPARTMENT AND CITY MANAGER'S OFFICE PRESENTATION BY: KHANH NGUYEN, CBO, BUILDING OFFICIAL FOR FURTHER INFORMATION CONTACT: , : KHANH-NGUYEN_(714) 754.5277 . . RECOMMENDATION City Council. consider draft Policy no. 500 -14, a "Green Policy" for Costa Mesa municipal` government operations. BACKGROUND City Council has expressed ,interest :in ad6pting.- incentives .to,.encourage sustainable development ,and "green building" constructionx in Costa M- As such; .City. staff, res idents, and major, ....... takeholders, also known. ..as the,:7. reeh Team", :dollabofated in recent months;: to formulate and propose a comprehensive "'Sustainable Murncipal Green Policy'" and a "Build:Green Incentive Program ". Since the Build Green: Incentive Program strictly focuses, on private property, that proposal is addressed in a separate . staff report,also on;,Council's;$eptemf5er 4 '.meeti qg agenda. The Team is pleased to present .a draft municipal green policy for your consideration: proposed Council. Policy no 14: The intent of this policy is to' demonstrate the City's commitment to conserving energy and natural resources in municipal government operations: While the draft.Council Policy would. formalize.. additional programs for staff to follow, the City has a good record to date implementing a number of programs and practices such as; accelerated plancheck services for buildings meeting Federal;Energy, Star Program, standards (Council Policy 500 -14 adopted in October 2002); enforcing the `3`� teml NPDES . water quality permit; . General . Plan: policies _(la.nd use;..open space, b cncle sta age ; current California iEner tS Codel 50°10 co struction debris and p } g (p g, .refuse 'enclosures, Y g) 5y sand waste discharge permit; and, energy conservation best practices. Additional, sustainable efforts'include: * Construction of the Police Facility expansion under the Federal Energy Star,, program (15% above``Energy Code). *Retrofit City. Hall, Neighborhood Community Center, and Corporate Yard ,waier conserving fixtures. * Annually recycle over 26,000 pounds of office paper. Less Impact on the. 0% 30% 40% 50% 70% environment Small Scale: Office Supplies: The current cost for our governmental copier paper is. $5.50, per 1,000 sheets. The cost for 30% recycled content copier paper is $8.84 per 1 f000 sheets or approximately 20% more. 2 I DISTRIBUTION: City Manager City. Attorney Public Services Director City Clerk, (2) Staff ,(4) File (2) File: 090407Munica alGreenPoli Date: 082307 Time: 2:00 .m. 3 n AT- A- GLANCE SUMMARY TABLE nuuuingmarnrenance ana uperatrans: Cityshall maintain/operate City buildings to maximize energy conservation.. City,shall implement such measures including waterless urinals, energy efficient lighting green- Peat' 2009 friendly carpets, paints, flooring, and building materials. Ci Fleet. City shall romote-ener g y c(inservaton/low`emissions in City fleet by replacing all ')rtm� ng ��n*es passenger /carpool and non- emergency response vehicles at the end of ther.life cycle to alternative fuel/hybrid vehicles. Seek opportunities to use alternative fuels. Urban Forest Coverage. Green Spaces and Water Consumption City shall promote sustaxziability by preserving/e "nhapcing parks and open spaces tree Yeas' 2009: canopies; and:sustainal Wlandscaping "(artifcial; turf; native plants,'low maintenance fertilizers, reclaimed.water). Ill., Public Education: Educatio "n acrd Outreach: City, shall•`pramote sustainability and energy conservation to its citizens through publication of green building literature, partnering with other communities October 1, 2007'; and agencies, conducting local, workshops, and training employees. t n/W Inforrnatloir Clearfn�e City.shall creme custainrzed,websrte with useful information resources for residents and <. a�tober 1, 200 developers to be updated regularly:.: N. Urban Desi' n Strate 'es Mixed- Use Development City sh9I promote, walkable communities with thoughtful coordination of land uses, transportation, and open spaces. Year 2007 V. Waste Reduction City shall coordinate with Costa Mesa Sanitary District and other waste haulers to reach a I year 2020 60% diversion rate of waste from landfills. Vl. Water Conservation Water saving technology City shall coordinate with Mesa Consolidated and 1RWD to TBD implement innovative water- saving technologies to reduce water consumption and 'promote reclaimed water usage. VII. Energy Conservation Ener, � 0—dew Programs: City shall partner with Southern California Edison to createudj TBD implement energy efficient programs/resources, educate the public, and reduce costs. ^aBJ CITY OF COSTA:MESA,.CALIFORNIA COUNCIL POLICY SUBJECT POLICY EFFECTIVE PAGE NUMBER DATE SUSTAINABLE MUNICIPAL. GREEN POLICY 500A4 9-4 -07 1 of 5 The purpose -of a;Ci. ide..policy oh� sustainable construction :and energy efficient ,operations is to demonstrate the City's. commitment to environmentally responsible .and economically viable ,practices, to -yield cost..savings to the City #axpayers through reducedoperatmg costs, to provide healthy work environments, antl to contribute to the CEty's';goals, of protecting, conserving, and enhancing the region's, environmental .,resources:.lt.isahe mtent.af the.City to,`adopt bestdesign and management :practices,10 reduce storm "water run =off, water: eb 'nsumption; #raffic,congestion, energy cornsumption, and landfill waste, This`Gounctl Policy will be periodically reviewed to update the :particular.. -goals and timelines as well as`.add; any atlditional'goals� as"desiretl: The City's !abiUty to implement thp,goals.WII be,contingent on both the scapacity of.sstaff to implement the goals as ,well;as. the fnancial . "means to prgvide::for the associated increased cos #s The costs a. aehieve the goals .will. be. evaluated, as'part of the: City °s annual budget preparation: PUBLIC DEVELOPMENT '!. New Construction Policy The City of Gosta Mesa. shall incorporate sustainable building °principles and practices into the „planning; design construction, management, renovatson, and operations of all. City :facilities that are 'oonstructed and owned "by`the` City. Thisdoesa not ;include those projects already under construction or funded rior to the adopfion of this policy; except to the extent sustainable building principles and materials may reasonably be incorporated without unduly impacting construction schedule or cost of project. 1.1 All new City. facilities. and buildings constructed after July 1, ;2008 will ..;meet a minimum LEE ©,Gold ratirig and exceed .current State :of Cabfomia Title 24 Energy Code: requirements ',by;, at tleast 15% The . US .Green Building ,CounciCs: LEER {Leadership in, Energy and, Environmental, Design} rating systemshall be used as a design and measurement tool to determine what constitutes sustainable building by. national standards:: E 9 CITY OF COSTA, MESA, CALIFORNIA COUNCIL POLICY SUBJECT POLICY EFFECTIVE PAGE NUMBER DATE SUSTAINABLE MUNICIPAL GREEN POLICY 500 -14 9-4 -07 24Z, II. CITY OPERATIONS 3. Building Mailntenance and Operations It is: the policy of the:Ciiy that all =its buildings -will :be maintained and operated in such a fashion that the minimum amounts of = energy and water are consumetl whtle providing environmental benefits. The City shall: 3.1 Replace all existing urinals with waterless urinals by 2009. 3:2 Replace all computer CRT monitosat ed of if cycl With most energy efficientleost effective display systems: 3.3 Replace 'all existing tandard light bulbs 'and applicable "fixtures with the most energy:.efficienticost:effective EnergyStar /Compact Fluorescent Light bulbs (CFL) and ancillary�fixtures 3.4 Adopt green specifications for City remodeling projects, requiring low- emission and environmentally - friendly carpet, sealants, adhesives, paint, flooring and. other office repair items and furnishings by 2009.. The expected cost increase is unknown at this time but may range from 10% to 25% more. As the availability of more sustainable products increases, the increased costs associated with this effort will likely be more in line with, current products. 9 SUBJECT POLICY EFFECTIVE PAGE° NUMBER DATE SUSTAINABLE MUNICIPAL GREEN POLICY 50014 94=07 3 of 5 CITY OF, COSTA lMESA, CALIFORNIA C 0 U NZ) I, P.0 l,.tC Y SUBJECT POLICY EFFECTIVE PAGE NUMBER DATE .SUSTAINABLE MUNICIPAL GREEN POLICY 50d 14: :,94-07- 4, of, 5 5.4 .— -,"Ip' ' .,Water shall .be m a-x'i mjzdd. R461ained water wne.ne.v e r,,: possible II --Y ;-PUBLIC EDUCATION ion; systems run -off and all,,be used F;J7 CITY OF COSTA MESA, CALIFORNIA COUNCIL POLICY SUBJECT POLICY EFFECTIVE PAGE. NUMBER DATE SUSTAINABLE MUNICIPAL GREEN POLICY 500 -14 9-4 -07 5 of 5 IVURBAN DESIGN STRATEGIES The City shall encourage through the General ,Plan, as appropriate in :specific areas, mixed use urban accessble heghborhoodspwhichhoordin coordinate userond transportatonewith open' ispace designed neighborhoods. space systems for recreation and ecological restoration. V.WASTE REDUCTION The City shall coordinate with the Costa Mesa Sanitary District and.franchised waste; haulers serving the. City, and strive to reach a'6U% diversion rate of waste from landfills by 2020: The City Shall actively seek and employ rh6thdtls of redobih the waste stream in City operations. VIMATER CONSERVATION The City shall coordinate with the.-Mesa Consolidated and Irvine Ranch Water Districts to ;create water conservation measures and employ innovative water- saving teehnolggies that strive to decrease the City's water consumption,for City operations. The City shall continue to expand the use of reclaimed- water as appropriate as an effective .water supply. source for. City. operational needs. VII.ENERGY CONSERVATION The City shall conserve energy, whenever and ,wherever possible in Cityoperations. The City Shall further partner with Southern California .Edison, The Gas Company and other energy. organizations, as applicable, to. maximize energy..efficieht programs and resources in City operations and to disseminate information to the public.on conserving energy while reducing costs and improving the environment. 10. The City shall: 10.1 Create an Energy Conservation Program by 2008, which will establish City energy. reduction goals, programs, guidelines, incentives, resources and'other information. • STANDARD OFFER, AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE OF REAL ESTATE (Non- Residential) AIR Commercial Real Estate Association August 28, 2007 1. Buyer. (Date for Reference Purposes) 1.1 Costa Mesa Sanitary District , ('Buyer ") hereby offers to purchase the real property, hereinafter described, from the owner thereof (" Seller ") (collectively, the "Parties" or individually, a "Party"), through an escrow ( "Escrow ") to close 30 or ten (10) days after the waiver or expiration of the Buyer's Contingencies, ("Expected Closing Date ") to be held by Orange Coast Title Company ( "Escrow Holder ") whose address is , Phone No. , Facsimile No. upon the terms and conditions set forth in this agreement ("Agreement"). Buyer shall have the right to assign Buyer's rights hereunder, but any such assignment shall not relieve Buyer of Buyer's obligations herein unless Seller expressly releases Buyer. 1.2 The term "Date of Agreement" as used herein shall be the date when by execution and delivery (as defined in paragraph 20.2) of this document or a subsequent counteroffer thereto, Buyer and Seller have reached agreement in writing whereby Seller agrees to sell, and Buyer agrees to purchase, the Property upon terms accepted by both Parties. 2. Property. 2.1 The real property ( "Property ") that is the subject of this offer consists of (insert a brief physical description) two parcels of unimproved land of approximately 18,200 square feet total (Buyer to be responsible to verify exact square footage) is located in the City of Costa Mesa County of _Orange State 4,f California is commonly known by the street address of 174 W. Wilson Street and is legally described as: (to be provided in escrow by Title Company) (APN:419- 091 -04 &.05 2.2 If the legal description of the Property is not complete or is inaccurate, this Agreement shall not be invalid and the legal description shall be completed or corrected to meet the requirements of Orange Coast Title Company ( "Title Company "), which shall issue the title policy hereinafter described. 2.3 The Property includes, atno additional costto Buyer, thepermanent improvements thereon, including those items which pursuant to applicable law are a part of the property, as well as the following items, if any, owned by Seller and at present located on the Property: electrical distribution systems (power panel, bus ducting, conduits, disconnects, lighting fixtures); telephone distribution systems (lines, jacks and connections only); space heaters; heating, ventilating, air conditioning equipment (" HVAC "); air lines; fire sprinkler systems; security and fire detection systems; carpets; window coverings; wall coverings; and (collectively, the "Improvements "). 2.4 The fire sprinkler monitor:❑ is owned by Seller and included in the Purchase Price, ❑ is leased by Seller, and Buyer will need to negotiate a new lease with the fire monitoring company, ❑ ownership will be determined during Escrow, or 121 there is no fire sprinkler monitor. n/a 2.5 Except as providedin Paragraph 2.3,the Purchase Pricedoes not includeSeller's personal property, furniture and furnishings, and all of which shall be removed by Seller prior to Closing. 3. Purchase Price. 3.1 The purchase price ( "Purchase Price ") to be paid by Buyer to Seller for the Property shall be $ 900, 000 . 00 payable as follows: (a) Cash down payment, including the Deposit as defined in paragraph 4.3 (or if an all cash (Sttike-if transaction, the Purchase Price): $900,000.00 +�ef PAGE 1 OF 11 '11WINITIALS INITIALS 02003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6-6 /06E a RGIuding inteFest at the Fate of 0 peF annum until paid (andA9F the entiFe unpaid bala due GA Total Purchase Price: $900, 000.00 3.2 If Buyer is taking title to the Property subject to, or assuming, an Existing Deed of Trust and such deed of trust permits the beneficiary to demand payment of fees including, but not limited to, points, processing fees, and appraisal fees as a condition to the transfer of the Property, Buyer agrees to pay such fees up to a maximum of 1.5% of the unpaid principal balance of the applicable Existing Note. 4. Deposits. 4.1 $ IG-ESSFOI.AV MR-ld-R-F withan 2 r* days afteF both PaFtips hg�.,P. axes ted this AgFeemerA and thf, mepm-tRel Agmement has been delive - r4eri tn FsGrew HeldBF, Q within 2 or _ business days after both Parties have executed this Agreement and the executed Agreement has been delivered to Escrow Holder. Buyer shall deliver to Escrow Holder a check in the sum of $ 7 5, 000 . 0 0 . If said check is not received by Escrow Holder within said time period then Seller may elect to unilaterally terminate this transaction by giving wri tten notice of such election to Escrow Holder whereupon neither Parry shall have any further liability to the other under this Agreement. Should Buyer and Seller not enter into an agreement for purchase and sale, Buyer's check or funds shall, upon request by Buyer, be promptly returned to Buyer. 4:2 Additional deposits: (a) Within 5 business days afte Jepesit with ESGFew Holder the additiGnaVsun+-9f- A (b) Within 5 2 business days after the contingencies discussed in paragraph 9.1 (a) through (k) are approved or waived, Buyer shall deposit with Escrow Holder the additional sum of $ 0 . 0 0 to be applied to the Purchase Price at the Closing. 4.3 Escrow Holder shall deposit the funds deposited with it by Buyer pursuant to paragraphs 4.1 and 4.2 (collectively the "Deposit "), in a State or Federally chartered bank in an interest bearing account whose term is appropriate and consistent with the timing requirements of this transaction. The interest therefrom shall accrue to the benefit of Buyer, who hereby acknowledges that there may be penalti s or interest forfeitures if the applicable instrument is redeemed prior to its specified maturity. Buyer's Federal Tax Identification Number is qs = GQ ` C 4 NOTE: Such interest bearing account cannot be opened until Buyer's Federal Tax Identification Number is provided. S. Financing Contingency. (Strike if not applicable) There is no financing Contingency. 0 iR Mitift ef the diSaPPFeval within said 7 days it shall be GeRelusPeely pmsumed that Se"OF has appFGve th s fth New Leap- 62 ' h8l; Rat obtained said New Lean, this AgFeement shall. be terminated, and RuyeF shall be entitled to the prgFnpt retum ef the r Escrow Holder and SelleF, in WFItiRg 0 T411a-Plffrhase Me-ney Nate and 12uFGhase Money Deed of T-Fust shall be an the GiffFent f4pr.m b-'Y U-6-G-F-6-ON Held-e-F, and be juniai: and-suhnrdii; PAGE 2 OF 11 — 0 INITIALS INITIALS 02003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6 -8 /06E , Q . a)T-nent.-PFindpal may be PFepa'd iR whele 9F an part at any time without penalty, at the eptien of the Buyer-. (b) Late Ghariye. A 'ate GhaFge of 6,04 shall be payable with Fe6peGt tG aRy payment of � i.. .1, r r r not made within ig days fte (G) -Pue On Rafe. In the Event the 13UYeF sells er transfeF6 ti the eFAire unpaid balanee of said Note to be paid full-. behalf a request f9F Retise ef default andlep sale with Fe@aFd te eaGh FneAgage eF deed of Imst to whish it voill be suberdinate. 1 TS ON TLIC WARNING; CALIFORNIA LAW DOES NOT ALLOW DEFICIENCY JUDGEMENTS ON SELLFIR FINANCING. 19 BUYER 1-11-TIMATS, V DERA 1 1 /1AL1 ICCI 1 ER'S SOLE REM—ED —V IS TO FOR—ECLOSE ON THE PROPERTY - . -Selle0s obligation to pFevide finaRGiRg is G94rigeRt upon Sel!eF!s reasonable appFeval of Buyees finaneial rendi:tien- Buyer to pFevide a Gument finanm .1 r Ment and eepies ef its Federal tax Faturns fa.r the last 3 years to-SallerWthin 10 d Y-S fG119VARg the Date ef AgFeement. Seller has 10 fellewing FeGeipt ef suGh deGumentatien to satisfy itself with mgard to DuyeOs finanGial eanditie r; a - nd te netify FsGFew Holder as to whetheF OF ROt BUY8�6 finannaal AmndffiAn us arGeptable. if SO& falls te natify EssFew Heldw� 6A vAgRg, of the disappFeval of this centingenGy withiR said time per4ed, at shall be the FequiFed deGumentatien then 881leF May ROW EsGFew Held9F in WF#*Rg that SelleF FminandRg will not be available, and BuyeF shall have the Option, withmn days of the FeGeipt of 6uGh RatiGe, to either terminate this tra-Ma-s-f-im- n or ta puFehase the Property without SeIIeF finaneing. if Buyer falls to netiA, EsGrew HeIdeF within said time Paged Of its- tn terminate this #ansaGtien then Buyer shall be Gandusivelly presumed to have eIAG-ted te- p--,-;-;a1se the PropeFtywithout SelleF finandng. if Ruyer eleGts to teaninate, Buyegs Deposit shall be re4unded less :Pte Gampany and EsGraw Heider saRaellation fees and Gests, all of 7. Real Estate Brokers. 7.1 The following real estate broker(s) ("Brokers ") and brokerage relationships exist in this transaction and are consented to by the Parties (check the applicable boxes): 0 Gary Marquis / Collins Commercial Corporation represents Seller exclusively(" Seller's Broker "); Q Don Gregg / Curtis & Associates represents Buyer exclusively ("Buyees Broker"); or ❑ represents both Seller and Buyer ("Dual Agency "). The Parties acknowledge that Brokers are the procuring cause of this Agreement. See paragraph 24 regarding the nature of a real estate agency relationship. Buyer shall use the services of Buyer's Broker exclusively in connection with any and all negotiations and offers with respect to the Property for a period of 1 year from the date inserted for reference purposes at the top of page 1. 7.2 Buyer and Sellereach represent and warrantto the otherthat he /she /it has hadno dealings with anyperson, firm, broker or finderin connection with the negotiation of this Agreement and /or the consummation of the purchase and sale contemplated herein, other than the Brokers named in paragraph 7.1, and no broker or other person, firm or entity, other than said Brokers is /are entitled to any commission or finder's fee in connection with this transaction as the result of any dealings or acts of such Party. Buyer and Seller do each hereby agree to indemnify, defend, protect and hold the other harmless from and against any costs, expenses or liability for compensation, commission or charges which may be claimed by any broker, finder or other similar party, other than said named Brokers by reason of any dealings or act of the indemnifying Party. 8. Escrow and Closing. 8.1 Upon acceptance hereof by Seller, this Agreement, including any counteroffers incorporated herein by the Parties, shall constitute not only the agreement of purchase and sale between Buyer and Seller, but also instructions to Escrow Holder for the consummation of the Agreement through the Escrow. Escrow Holder shall not prepare any further escrow instructions restating or amending the Agreement unless specifically so instructed by the Parties or a Broker herein. Subject to the reasonable approval of the Parties, Escrow Holder may, however, include its standard general escrow provisions. 8.2 As soon as practical afterthe receipt of this Agreementand any relevantcounteroffers, Escrow Holder shall ascertain the Date of Agreement as defined in paragraphs 1.2 and 20.2 and advise the Parties and Brokers, in writing, of the date ascertained. 8.3 Escrow Holder is hereby authorized and instructed to conduct the Escrow in accordance with this Agreement, applicable law and custom and practice of the community in which Escrow Holder is located, including any reporting requirements of the Internal Revenue Code. In the event of a conflict between the law of the state where the Property is located and the law of the state where the Escrow Holder is located, the law of the state where the Property is located shall prevail. 8.4 Subject to satisfaction of thecontingencies herein described, Escrow Holdershall close thisescrow (the "Closing ") by recording a general warranty deed (a grant deed in California) and the other documents required to be recorded, and by disbursing the funds and documents in accordance with this Agreement. 8.5 Buyer and Seller shall each pay one -half of the Escrow Holder's charges and Seller shall pay the usual recording fees and any required documentary transfer taxes. Seller shall pay the premium for a standard coverage owner's or joint protection policy of title insurance. 8.6 Escrow Holder shall verifythat all of Buyer's contingencies have been satisfied or waivedprior to Closing. The matters contained in paragraphs 9.1 subparagraphs (b), (c), (d), (e), (g), (i), (n), and (o), 9.4, 9.5, 12, 13, 14, 16, 18, 20, 21, 22, and 24 are, however, matters of agreement between the Parties only and are not instructions to Escrow Holder. 1 8.7 If this transaction is terminated for non - satisfaction and non- waiverof a Buyer's Contingency, as defined in paragraph 9.2, then neither ofthe Parties shall thereafter have any liability to the other under this Agreement, except to the extent of a breach of any affirmative covenant or warranty in this Agreement In the event of such termination, Buyer shall be promptly refunded all funds deposited by Buyer with Escrow Holder, less only Title Company and Escrow Holder cancellation fees and costs, all of which shall be Buyer's obligation. If this transaction is terminated as a result of Seller's breach of this Agreement then Seller shall pay the Title Company and Escrow Holder cancellation fees and costs. 8.8 The Closing shall occur on the Expected Closing Date, or as soon thereafter as the Escrow is in condition for Closing; provided, however,that if the Closing does not occur by the Expected Closing Date and said Date is not extended by mutual instructions of the Parties, a Party not then in default under this Agreement may notify the other Party, Escrow Holder, and Brokers, in writing that, unless the Closing occurs within 5 business days following said notice, the Escrow shall be deemed terminated without further notice or instructions. 8.9 Except as otherwise provided herein, the termination of Escrow shall not relieve orrelease either Party from any obligation to pay Escrow Holder's fees and costs or constitute a waiver, release or discharge of any breach or default that has occurred in the performance of the obligations, agreements, covenants or warranties contained therein. 8.10 If this Escrow is terminated for any deposit, Buyer shall within 5 days after written NITIALS reason otherthan Seller's breach or default, then at Seller's request, andas a condition tothe return of Buyer's request deliver to Seller, at no charge, copies of all surveys, engineering studies, soil reports, maps, master PAGE 3 OF 11 INITIALS ©2003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6-8/06E plans, feasibility studies and other similar items prepared by or for Buyer that pertain to the Property. Provided, however, that Buyer shall not be required to deliver any such report if the written contract which Buyer entered into with the consultant who prepared such report specifically forbids the dissemination of the report to others. 9. Contingencies to Closing. 9.1 The Closing of this transaction is contingent upon the satisfaction or waiver of the following contingencies. IF BUYER FAILS TO NOTIFY ESCROW HOLDER, IN WRITING, OF THE DISAPPROVAL OF ANY OF SAID CONTINGENCIES WITHIN THE TIME SPECIFIED THEREIN, IT SHALL BE CONCLUSIVELY PRESUMED THAT BUYER HAS APPROVED SUCH ITEM, MATTER OR DOCUMENT . Buyer's conditional approval shall constitute disapproval, unless provision is made by the Seller within the time specified therefore by the Buyer in such conditional approval or by this Agreement, whichever is later, for the satisfaction of the condition imposed by the Buyer. Escrow Holder shall promptly provide all Parties with copies of any written disapproval or conditional approval which it receives. With regard to subparagraphs (a) through (1) the pre - printed time periods shall control unless a different number of days is inserted in the spaces provided. (a) Disclosure. Seller shall make to Buyer, through Escrow, all of the applicable disclosures required by law (See AIR Commercial Real Estate Association ( "AIR ") standard form entitled "Seller's Mandatory Disclosure Statement') and provide Buyer with a completed Property Information Sheet ( "Property Information Sheet") concerning the Property, duly executed by or on behalf of Seller in the current form or equivalent to that published by the AIR within 10 or - - - - days following the Date of Agreement. Buyer has 40 20 days from the receipt of said disclosures to approve or disapprove the matters disclosed. (b) Physical Inspection. Buyer has 40 eF 30 days from the FeGeipt of the Property InfaFmatien 6 or the Date of Agreement, whichever is later, to satisfy itself with regard to the physical aspects and size of the Property. (c) Hazardous Substance Conditions Report. Buyer has 30 or - - - - days from the .,.,.eipt ef the PFepeFty lnf...matien Sheet OF the Date of Agreement, whichever is later, to satisfy itself with regard to the environmental aspects of the Property. Seller recommends that Buyer obtain a Hazardous Substance Conditions Report concerning the Property and relevant adjoining properties. Any such report shall be paid for by Buyer. A " Hazardous Substance" for purposes of this Agreement is defined as any substance whose nature and /or quantity of existence, use, manufacture, disposal or effect, render it subject to Federal, state or local regulation, investigation, remediation or removal as potentially injurious to public health or welfare. A Hazardous Substance Condition" for purposes of this Agreement is defined as the existence on, under or relevantly adjacent to the Property of a Hazardous Substance that would require remediation and /or removal under applicable Federal, state or local law. (d) Soil Inspection. Buyer has 30 or - - - - days from the rea ipt of the PrepePrepe in'^irrno..on- Sh^^ *z nr the Date of Agreement, whichever is later, to satisfy itself with regard to the condition of the soils on the Property. Seller recommends that Buyer obtain a soil test report. Any such report shall be paid for by Buyer. Seller shall provide Buyer copies of any soils report that Seller may have within 10 days of the Date of Agreement. (e) Governmental Approvals. Buyer has 30 or 90 days from the Date of Agreement to satisfy itself with regard to approvals and permits from governmental agencies or departments which have or may have jurisdiction over the Property and which Buyer deems necessary or desirable in connection with its intended use of the Property, including, but not limited to, permits and approvals required with respect to zoning, planning, building and safety, fire, police, handicapped and Americans with Disabilities Act requirements, transportation and environmental matters. (f) Conditions of Title. Escrow Holder shall cause a current commitment for title insurance (" Title Commitment ") concerning the Property issued by the Title Company, as well as legible copies of all documents referred to in the Title Commitment (" Underlying Documents"), and a scaled and dimensioned plot showing the location of any easements to be delivered to Buyer within 10 or -- days following the Date of Agreement. Buyer has 10 days from the receipt of the Title Commitment, the Underlying Documents and the plot plan to satisfy itself with regard to the condition of title. The disapproval by Buyer of any monetary encumbrance, which by the terms of this Agreement is not to remain against the Property after the Closing, shall not be considered a failure of this contingency, as Seller shall have the obligation, at Seller's expense, to satisfy and remove such disapproved monetary encumbrance at or before the Closing. is (g) Survey. Buyer has 30 or - - - -- days from the Date of Agreement to satisfy itself with regard to any ALTA title supplement based upon a survey prepared to American Land Title Association (" ALTA ") standards for an owner's policy by a licensed surveyor, showing the legal description and boundary lines of the Property, any easements of record, and any improvements, poles, structures and things located within 10 feet of either side of the Property boundary lines. Any such survey shall be prepared at Buyers direction and expense. If Buyer has obtained a survey and approved the ALTA title supplement, Buyer may elect within the period allowed for Buyers approval of a survey to have an ALTA extended coverage owners form of title policy, in which event Buyer shall pay any additional premium attributable thereto. (h) Existing Leases and Tenancy Statements. Seller shall within 10 or - - - - days of the Date of Agreement provide both Buyer and Escrow Holder with legible copies of all leases, subleases or rental arrangements (collectively, " Existing Leases ") affecting the Property, and with a tenancy statement ( "Estoppel Certificate ") in the latest form or equivalent to that published by the AIR, executed by Seller and /or each tenant and subtenant of the Property. Seller shall use its best efforts to have each tenant complete and execute an Estoppel Certificate. If any tenant fails or refuses to provide an Estoppel Certificate then Seller shall complete and execute an Estoppel Certificate for that tenancy. Buyer has 10 days from the receipt of said Existing Leases and Estoppel Certificates to satisfy itself with regard to the Existing Leases and any other tenancy issues. (i) Other Agreements. Seller shall within 10 or - - - -- days of the Date of Agreement provide Buyer with legible copies of all other agreements ( "Other Agreements ") known to Seller that will affect the Property after Closing. Buyer has 10 days from the receipt of said Other Agreements to satisfy itself with regard to such Agreements. 0) Financing. If paragraph 5 hereof dealing with a financing contingency has not been stricken, the satisfaction or waiver of such New Loan contingency. (k) Existing Notes. if pairagmph 3.4 (G) has not beeR stFiokeR, Seller shall within 10 eF days of the Date of AgFeement previde Buyer vAh legible eapies ef the &isfing Notes, E)dsfing Deeds 9f TFust and Felated agFeements (eallectively, " Lean DeGuments") te whieh the PFepeF[y YAII Femain subjeet afleF the Glesing. E-sGFew Holder shall promptly request from the heldeFs ef the &isting Notes a benefidairy statement (" Beneftiary Statement") GenfiFming� (4) the amewnt of the unpaid pi�inaipal balanee, the awFeRt inteFest Fate, and the date- 4A %vhieh WeFest as paid, and (2) the Ra-b-Fe and _RFAeunt ef any mpewRds he'd by the beRel!ieiaFy iR eannestien Wth weh lean. BuyeF has 10 eF days fFam the FeGeipt of the I RRR Q981 'FRRRtR Rd lilenefiGiaFy gtateirneRti; te satisfy itself vAth regard- to fiRnAsing. Buye�s obligation te close 66 ear 'OF being able to uF�Ghase the PFepeFtY WithOUt h9 BuyeF pay shall . the ♦. Sf^. fee ....f.. ed to paragraph 3.2 hz heFeef , shall be paid for by RuyeF. Seller shall provide BuyeF Gepies of any loans OF eRG61FAbFaRGes affeeting suGh persanal pr4operty that it is amva.re a-fi.A.4thin IQ Ar PAGE 4 OF 11 INITIALS iM- INITIALS • 02003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6-8 /06E (m) Destruction, Damage or Loss. There shall not have occurred prior to the Closing, a destruction of, or damage or loss to, the Property or any portion thereof, from any cause whatsoever, which would cost more than $10,000.00 to repair or cure. If the cost of repair or cure is $10,000.00 or less, Seller shall repair or cure the loss prior to the Closing. Buyer shall have the option, within 10 days after receipt of written notice of a loss costing more than $10,000.00 to repair or cure, to either terminate this Agreement or to purchase the Property notwithstanding such loss, but without deduction or offset against the Purchase Price. If the cost to repair or cure is more than $10,000.00, and Buyer does not elect to terminate this Agreement, Buyer shall be entitled to any insurance proceeds applicable to such loss. Unless otherwise notified in writing, Escrow Holder shall assume no such destruction, damage or loss has occurred prior to Closing. (n) Material Change. Buyer shall have 10 days following receipt of written notice of a Material Change within which to satisfy itself with regard to such change. "Material Change" shall mean a change in the status of the use, occupancy, tenants, title, or condition of the Property that occurs after the date of this offer and prior to the Closing. Unless otherwise notified in writing, Escrow Holder shall assume that no Material Change has occurred prior to the Closing. (o) Seller Performance. The delivery of all documents and the due performance by Seller of each and every undertaking and agreement to be performed by Seller under this Agreement. (p) Warranties. That each representation and warranty of Seller herein be true and correct as of the Closing. Escrow Holder shall assume that this condition has been satisfied unless notified to the contrary in writing by any Party prior to the Closing. (q) Brokerage Fee. Payment at the Closing of such brokerage fee as is specified in this Agreement or later written instructions to Escrow Holder executed by Seller and Brokers ("Brokerage Fee "). It is agreed by the Parties and Escrow Holder that Brokers are a third party beneficiary of this Agreement insofar as the Brokerage Fee is concerned, and that no change shall be made with respect to the payment of the Brokerage Fee specified in this Agreement, without the written consent of Brokers. 9.2 All of the contingencies specified insubparagraphs (a) through (p) ofparagraph 9.1 arefor the benefit of, andmay be waivedby, Buyer, andmay be elsewhere herein referred to as "Buyer's Contingencies." 9.3 If any of Buyer's Contingencies or any other matter subject to Buyer's approval is disapproved as provided for herein in a timely manner ( "Disapproved Item "), Seller shall have the right within 10 days following the receipt of notice of Buyer's disapproval to elect to cure such Disapproved Item prior to the Expected Closing Date ("Seller's Election "). Seller's failure to give to Buyer within. such period, written notice of Seller's commitment to cure such Disapproved Item on or before the Expected Closing Date shall be conclusively presumed to be Seller's Election not to cure such Disapproved Item. If Seller elects, either by written notice or failure to give written notice, not to cure a Disapproved Item, Buyer shall have the right, within 10 days after Seller's Election to either accept title to the Property subject to such Disapproved Item, or to terminate this Agreement. Buyer's failure to notify Seller in writing of Buyer's election to accept title to the Property subject to the Disapproved Item without deduction or offset shall constitute Buyer's election to terminate this Agreement. Unless expressly provided otherwise herein, Seller's right to cure shall not apply to the remediation of Hazardous Substance Conditions or to the Financing Contingency. Unless the Parties mutually instruct otherwise, if the time periods for the satisfaction of contingencies or for Seller's and Buyers elections would expire on a date after the Expected Closing Date, the Expected Closing Date shall be deemed extended for 3 business days following the expiration of (a) the applicable contingency period(s), (b) the period within which the Seller may elect to cure the Disapproved Item, or (c) if Seller elects not to cure, the period within which Buyer may elect to proceed with this transaction, whichever is later. 9.4 Buyer understands and agreesthat until such time asall Buyers Contingencies havebeen satisfied or waived,Seller and /or its agentsmay solicit, entertain and /or accept back -up offers to purchase the Property. 9.5 The Parties acknowledge that extensive local, state and Federal legislation establish broad liability upon owners and /or users of real property for the investigation and remediation of Hazardous Substances. The determination of the existence of a Hazardous Substance Condition and the evaluation of the impact of such a condition are highly technical and beyond the expertise of Brokers. The Parties acknowledge that they have been advised by Brokers to consult their own technical and legal experts with respect to the possible presence of Hazardous Substances on the Property or adjoining properties, and . Buyer and Seller are not relying upon any investigation by or statement of Brokers with respect thereto. The Parties hereby assume all responsibility for the impact of such Hazardous Substances upon their respective interests herein. 10. Documents Required ator Before Closing: 10.1 Five daysprior to the Closing date Escrow Holder shall obtain an updated Title Commitment conceming the Property from the Title Companyand provide copies thereof to each of the Parties. 10.2 Sellershall deliver toEscxow Holder in timefor delivery toBuyer at theClosing: (a) Grant orgeneral warrantydeed, dulyexecuted andin recordableform, conveyingfee titleto the Property toBuyer. (b) If applicable, the Beneficiary Statements concerning Existing Note(s). (c) If applicable, the Existing Leases and Other Agreements together with duly executed assignments thereof bySeller and Buyer. The assignment of Existing Leases shall be on the most recent Assignment and Assumption of Lessors Interest in Lease form published by the AIR or its equivalent. (d) Ifapplicable, Estoppel Certificates executedby Sellerand /or thetenant(s) ofthe Property. (e) An affidavit executed bySeller to theeffect that Selleris not a "foreign person" withinthe meaningof Internal Revenue Code Section 1445or successor statutes. If Seller does not provide such affidavit in form reasonably satisfactory to Buyer at least 3 business days prior to the Closing, Escrow Holder shall at the Closing deduct from Sellers proceeds and remit to the Internal Revenue Service such sum as is required by applicable Federal law with respect to purchases from foreign sellers. (f) If the Property is located in California, an affidavit executed by Seller to the effect that Seller is not a "nonresident" within the meaning of California Revenue and Tax Code Section 18662 or successor statutes. If Seller does not provide such affidavit in form reasonably satisfactory to Buyer at least 3 business days prior to the Closing, Escrow Holder shall at the Closing; deduct from Sellers proceeds and remit to the Franchise Tax Board such sum as is required by such statute. (g)If applicable, abill ofsale, dulyexecuted, conveyingtitle toany included personal propertyto Buyer. (h) Ifthe Selleris a corporation,a dulyexecuted corporate resolution authorizing theexecution ofthis Agreement andthe saleof the Property. 10.3 Buyer shalldeliver toSeller through Escrow: (a) Thecash portion ofthe Purchase Priceand such additionalsums as arerequired of Buyerunder this Agreementshall be depositedby Buyer With Escrow Holder, by federal funds wire transfer, or any other method acceptable to Escrow Holder in immediately collectable funds, no later than 2:00 P.M. on the business day prior to the Expected Closing Date. (b) Ifa Purchase MoneyNote and Purchase Money Deed of Trustare calledfor by thisAgreement, the dulyexecuted originalsof those documents, the Purchase Money Deed of Trust being in recordable form, together with evidence of fire insurance on the improvements in the amount of the full replacement cost naming Seller as a mortgage loss payee, and a real estate tax service contract (at Buyer's expense), assuring Seller of notice of the status of payment of real property taxes during the life of the Purchase Money Note. (c) TheAssignment and Assumption of Lessorslnterest in Lease formspecified in paragraph 1 0.2(c) above,duly executedby Buyer. (d)Assumptions duly executedby Buyerof theobligations of Seller thataccrue after Closing underany OtherAgreements. *INITIALS PAGE 5 OF 11 TOP KVA INITIALS ©2003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6-8 /06E (e)lf applicable,a written assumption dulyexecuted byBuyer ofthe loandocuments withrespect to Existing Notes. (f) Ifthe Buyeris a corporation,a dulyexecuted corporate resolution authorizing theexecution ofthis Agreement andthe purchase ofthe Property. 10.4 At Closing, Escrow Holder shall cause to be issued to Buyer astandard coverage (orALTA extended, if elected pursuant to 9.1(g)) owner's form • policy of title insurance effective as of the Closing, issued by the Title Company in the full amount of the Purchase Price, insuring title to the Property vested in Buyer, subject only to the exceptions approved by Buyer. In the event there is a Purchase Money Deed of Trust in this transaction, the policy of title insurance shall be a joint protection policy insuring both Buyer and Seller. IMPORTANT: IN A PURCHASE OR EXCHANGE OF REAL PROPERTY, IT MAY BE ADVISABLE TO OBTAIN TITLE INSURANCE IN CONNECTION WITH THE CLOSE OF ESCROW SINCE THERE MAY BE PRIOR RECORDED LIENS AND ENCUMBRANCES WHICH AFFECT YOUR INTEREST IN THE PROPERTY BEING ACQUIRED. A NEW POLICY OF TITLE INSURANCE SHOULD BE OBTAINED IN ORDER TO ENSURE YOUR INTEREST IN THE PROPERTY THAT YOU ARE ACQUIRING. 11. Prorations and Adjustments. 11.1 Taxes. Applicable real property taxes and special assessment bonds shall be prorated through Escrow as of the date of the Closing, based upon the latest tax bill available. The Parties agree to prorate as of the Closing any taxes assessed against the Property by supplemental bill levied by reason of events occurring prior to the Closing. Payment of the prorated amount shall be made promptly in cash upon receipt of a copy of any supplemental bill. 11.2 Insurance. WARNING: Any insurance which Seller may have maintained will terminate on the Closing. Buyer is advised to obtain appropriate insurance to cover the Property. 11.3 Rentals, Interest and Expenses. Scheduled rentals, interest on Existing Notes, utilities, and operating expenses shall be prorated as of the date of Closing. The Parties agree to promptly adjust between themselves outside of Escrow any rents received after the Closing. 11.4 Security Deposit. Security Deposits held by Seller shall be given to Buyer as a credit to the cash required of Buyer at the Closing. 11.5 Post Closing Matters. Any item to be prorated that is not determined or determinable at the Closing shall be promptly adjusted by the Parties by appropriate cash payment outside of the Escrow when the amount due is determined. 11.6 Variations in Existing Note Balances. In the event that Buyer is purchasing the Property subject to an Existing Deed of Trust(s), and in the event that a Beneficiary Statement as to the applicable Existing Note(s) discloses that the unpaid principal balance of such Existing Note(s) at the closing will be more or less than the amount set forth in paragraph 3.1(c) hereof (" Existing Note Variation "), then the Purchase Money Note(s) shall be reduced or increased by an amount equal to such Existing Note Variation. If there is to be no Purchase Money Note, the cash required at the Closing per paragraph 3.1(a) shall be reduced or increased by the amount of such Existing Note Variation. 11.7 Variations in New Loan Balance. In the event Buyer is obtaining a New Loan and the amount ultimately obtained exceeds the amount set forth in paragraph 5.9, then the amount of the Purchase Money Note, if any, shall be reduced by the amount of such excess. 12. Representations and Warranties of Seller and Disclaimers: 12.1 Seller's warranties and representations shall survive the Closing and delivery of the deedfor a period of 3years, and, are true, material and relied upon by Buyer and Brokers in all respects. Seller hereby makes the following warranties and representations to Buyer and Brokers: (a) Authority of Seller. Seller is the owner of the Property, and /or has the full right, power and authority to sell, convey and transfer the Property to Buyer as provided herein, and to perform Seller's obligations hereunder. (b) Maintenance During Escrow and Equipment Condition At Closing. Except as otherwise provided in paragraph 9.1(m) hereof, Seller shall maintain the Property until the Closing in its present condition, ordinary wear and tear excepted. (c) Hazardous Substances/Storage Tanks. Seller has no knowledge, except as otherwise disclosed to Buyer in writing, of the existence or prior existence on the Property of any Hazardous Substance, nor of the existence or prior existence of any above or below ground storage tank. (d) Compliance. Seller has no knowledge of any aspect or condition of the Property which violates applicable laws, rules, regulations, codes or covenants, conditions or restrictions, or of improvements or alterations made to the Property without a permit where one was required, or of any unfulfilled order or directive of any applicable governmental agency or casualty insurance company requiring any investigation, remediation, repair, maintenance or improvement be performed on the Property. (e) Changes in Agreements. Prior to the Closing, Seller will not violate or modify any Existing Lease or Other Agreement, or create any new leases or other agreements affecting the Property, without Buyer's written approval, which approval will not be unreasonably withheld. (f) Possessory Rights. Seller has no knowledge that anyone will, at the Closing, have any right to possession of the Property, except as disclosed by this Agreement or otherwise in writing to Buyer. (g) Mechanics' Liens. There are no unsatisfied mechanics' or materialmens' lien rights concerning the Property. (h) Actions, Suits or Proceedings. Seller has no knowledge of any actions, suits or proceedings pending or threatened before any commission, board, bureau, agency, arbitrator, court or tribunal that would affect the Property or the right to occupy or utilize same. (i) Notice of Changes. Seller will promptly notify Buyer and Brokers in writing of any Material Change (see paragraph 9.1(n)) affecting the Property that becomes known to Seller prior to the Closing. 0) No Tenant Bankruptcy Proceedings. Seller has no notice or knowledge that any tenant of the Property is the subject of a bankruptcy or insolvency proceeding. (k) No Seller Bankruptcy Proceedings. Seller is not the subject of a bankruptcy, insolvency or probate proceeding. (1) Personal Property. Seller has no knowledge that anyone will, at the Closing, have any right to possession of any personal property included in the Purchase Price nor knowledge of any liens or encumbrances affecting such personal property, except as disclosed by this Agreement or otherwise in writing to Buyer. 12.2 Buyer herebyacknowledges that, except as otherwise stated in this Agreement, Buyer is purchasing the Property in its existing condition and will, by the time called for herein, make or have waived all inspections of the Property Buyer believes are necessary to protect its own interest in, and its contemplated use of, the Property. The Parties acknowledge that, except as otherwise stated in this Agreement, no representations, inducements, promises, agreements, assurances, oral or written, concerning the Property, or any aspect of the occupational safety and health laws, Hazardous Substance laws, or any other act, ordinance or law, have been made by either Party or Brokers, or relied upon by either Party hereto. 12.3 In the eventthat Buyer learns that a Seller representation or warranty might be untrue prior to the Closing, and Buyer elects to purchase the Property anyway then, and in that event, Buyer waives any right that it may have to bring an action or proceeding against Seller or Brokers regarding said representation or warranty. 12.4 Any environmental reports, soils reports, surveys, and other similar documents which were prepared by third party consultants and provided to Buyer by Seller or Seller's representatives, have been delivered as an accommodation to Buyer and without any representation or warranty as to the sufficiency, accuracy, completeness, and /or validity of said documents, all of which Buyer relies on at its own risk. Seller believes said documents to be accurate, but Buyer is advised to retain appropriate consultants to review said documents and investigate the Property. 13. Possession. Possession of the Property shall be given to Buyer at the Closing subject to the rights of tenants under Existing Leases. PAGE 6 OF 11 INITIALS INITIALS • ©2003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA -" /06E 14. Buyer's Entry. •At any time during the Escrow period, Buyer, and its agents and representatives, shall have the right at reasonable times and subject to rights of tenants, to enter upon the Property for the purpose of making inspections and tests specified in this Agreement No destructive testing shall be conducted, however, without Seller's prior approval which shall not be unreasonably withheld. Following any such entry or work, unless otherwise directed in writing by Seller, Buyer shall return the Properly to the condition it was in prior to such entry or work, including the recompaction or removal of any disrupted soil or material as Seller may reasonably direct. All such inspections and tests and any other work conducted or materials furnished with respect to the Property by or for Buyer shall be paid for by Buyer as and when due and Buyer shall indemnify, defend, protect and hold harmless Seller and the Property of and from any and all claims, liabilities, losses, expenses (including reasonable attorneys' fees), damages, including those for injury to person or property, arising out of or relating to any such work or materials or the acts or omissions of Buyer, its agents or employees in connection therewith. 15. Further Documents and Assurances. The Parties shall each, diligently and in good faith, undertake all actions and procedures reasonably required to place the Escrow in condition for Closing as and when required by this Agreement. The Parties agree to provide all further information, and to execute and deliver all further documents, reasonably required by Escrow Holder or the Title Company. 16. Attorneys' Fees. If any Party or Broker brings an action or proceeding (including arbitration) involving the Property whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term "Prevailing Party" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attomeys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attomeys' fees reasonably incurred. 17. Prior Agreements /Amendments. 17.1 This Agreementsupersedes any andall prior agreements between Seller andBuyer regarding theProperty. 17.2 Amendments tothis Agreement areeffective only if madein writing and executedby Buyer andSeller. 18. Broker's Rights' - 18.1 If this sale is not consummated due to thedefault of either the Buyer orSeller, the defaulting Party shall be liable to and shall payto Brokers the Brokerage Fee that Brokers would have received had the sale been consummated. If Buyer is the defaulting party, payment of said Brokerage Fee is in addition to any obligation with respect to liquidated or other damages. 18.2 Upon the Closing,Brokers are authorizedto publicize thefacts of this transaction. 19. Notices. 19.1 Whenever any Party, Escrow Holder or Brokers herein shall desire to give or serve any notice, demand, request, approval, disapproval or other communication, each such communication shall be in writing and shall be delivered personally, by messenger or by mail, postage prepaid, to the address set forth in this Agreement or by facsimile transmission. 19.2 Service ofany such communication shall bedeemed made onthe date of actualreceipt if personally delivered.Any such communication sent by regular mail shall be deemed given 48 hours after the same is mailed. Communications sent by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed delivered 24 hours after delivery of the same to the Postal Service or courier. Communications transmitted by facsimile transmission shall be deemed delivered upon telephonic confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also •delivered via delivery or mail. If such communication is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. 19.3 Any Partyor Broker hereto mayfrom time to time, by notice in writing, designate a different address to which, or a different person or additional persons to whom, all communications are thereafter to be made. 20. Duration ofOffer. 20.1 If this offer isnot accepted by Seller on or before5:00 P.M. according to thetime standard applicable tothe city of Costa Mesa, California on the date of August 31, 2007 it shall be deemed automatically revoked. 20.2 The acceptance of this offer, or of anysubsequent counteroffer hereto, that creates an agreement betweenthe Parties as described in paragraph 1.2, shall be deemed made upon delivery to the other Party or either Broker herein of a duly executed writing unconditionally accepting the last outstanding offer or counteroffer. 21. LIQUIDATED DAMAGES. (This Liquidated Damages paragraph is applicable only if initialed by both Parties). THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, PRIOR TO SIGNING THIS AGREEMENT, THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY SELLER IF BUYER FAILS TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT. THEREFORE, IF, AFTER THE SATISFACTION OR WAIVER OF ALL CONTINGENCIES PROVIDED FOR THE BUYER'S BENEFIT, BUYER BREACHES THIS AGREEMENT, SELLER SHALL BE ENTITLED TO LIQUIDATED DAMAGES IN THE AMOUNT OF $20,000.00 . UPON PAYMENT OF SAID SUM TO SELLER, BUYER SHALL BE RELEASED FROM ANY FURTHER LIABILITY TO SELLER, AND ANY ESCROW CANCELLATION FEES AND TITLE COMPANY CHARGES SHALL BE PAID BY SELLER. Buyer Initials Seller Initials 22. ARBITRATION OF DISPUTES. (This Arbitration of Disputes paragraph is applicable only if initialed by both Parties.) 22.1 ANY CONTROVERSYAS TO WHETHER SELLERIS ENTITLED TOTHE LIQUIDATED DAMAGESAND /OR BUYER IS ENTITLED TO THE RETURN OF DEPOSIT MONEY, SHALL BE DETERMINED BY BINDING ARBITRATION BY, AND UNDER THE PAGE 7 OF 11 'RWNITIALS INITIALS ©2003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6 -8 /06E COMMERCIAL RULES OF THE AMERICAN ARBITRATION ASSOCIATION ( "COMMERCIAL RULES "). ARBITRATION HEARINGS SHALL BE HELD IN THE COUNTY WHERE THE PROPERTY IS LOCATED. ANY SUCH CONTROVERSY SHALL BE ARBITRATED • BY 3 ARBITRATORS WHO SHALL BE IMPARTIAL REAL ESTATE BROKERS WITH AT LEAST 5 YEARS OF FULL TIME EXPERIENCE IN BOTH THE AREA WHERE THE PROPERTY IS LOCATED AND THE TYPE OF REAL ESTATE THAT IS THE SUBJECT OF THIS AGREEMENT. THEY SHALL BE APPOINTED UNDER THE COMMERCIAL RULES. THE ARBITRATORS SHALL HEAR AND DETERMINE SAID CONTROVERSY IN ACCORDANCE WITH APPLICABLE LAW, THE INTENTION OF THE PARTIES AS EXPRESSED IN THIS AGREEMENT AND ANY AMENDMENTS THERETO, AND UPON THE EVIDENCE PRODUCED AT AN ARBITRATION HEARING. PRE - ARBITRATION DISCOVERY SHALL BE PERMITTED IN ACCORDANCE WITH THE COMMERCIAL RULES OR STATE LAW APPLICABLE TO ARBITRATION PROCEEDINGS. THE AWARD SHALL BE EXECUTED BY AT LEAST 2 OF THE 3 ARBITRATORS, BE RENDERED WITHIN 30 DAYS AFTER THE CONCLUSION OF THE HEARING, AND MAY INCLUDE ATTORNEYS' FEES AND COSTS TO THE PREVAILING PARTY PER PARAGRAPH 16 HEREOF. JUDGMENT MAY BE ENTERED ON THE AWARD IN ANY COURT OF COMPETENT JURISDICTION NOTWITHSTANDING THE FAILURE OF A PARTY DULY NOTIFIED OF THE ARBITRATION HEARING TO APPEAR THEREAT. 22.2 BUYER'S RESORT TO OR PARTICIPATION IN SUCH ARBITRATION PROCEEDINGS SHALL NOT BAR SUIT IN A COURT OF COMPETENT JURISDICTION BY THE BUYER FOR DAMAGES AND /OR SPECIFIC PERFORMANCE UNLESS AND UNTIL THE ARBITRATION RESULTS IN AN AWARD TO THE SELLER OF LIQUIDATED DAMAGES, IN WHICH EVENT SUCH AWARD SHALL ACT AS A BAR AGAINST ANY ACTION BY BUYER FOR DAMAGES AND /OR SPECIFIC PERFORMANCE. 22.3 NOTICE: BYINITIALING IN THE SPACEBELOW YOU ARE AGREEINGTO HAVE ANYDISPUTE ARISING OUTOF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION. Buyer Initials Seller Initials 23. Miscellaneous. 23.1 Binding Effect. This Agreement shall be binding on the Parties without regard to whether or not paragraphs 21 and 22 are initialed by both of the Parties. Paragraphs 21 and 22 are each incorporated into this Agreement only if initialed by both Parties at the time that the Agreement is executed. 23.2 Applicable Law. This Agreement shall be governed by, and paragraph 22.3 is amended to refer to, the laws of the state in which the Property is located. 23.3 Time of Essence. Time is of the essence of this Agreement. 23.4 Counterparts. This Agreement may be executed by Buyer and Seller in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Escrow Holder, after verifying that the counterparts are identical except for the signatures, is authorized and instructed to combine the signed signature pages on one of the counterparts, which shall then constitute the Agreement. 23.5 Waiver ofJury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. 23.6 Conflict. Any conflict between the printed provisions of this Agreement and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 23.7 1031 Exchange. Both Seller and Buyer agree to cooperatewith each other in the event thateither or both wish to participate in a 1031 exchange. Any party initiating an exchange shall bear all costs of such exchange. 24. Disclosures Regarding The Nature of a Real Estate Agency Relationship. 24.1 The Parties and Brokers agree that theirrelationship(s) shall be governed by the principles set forth in the applicable sections ofthe California Civil Code, as summarized in paragraph 24.2. 24.2 When entering intoa discussion with a realestate agent regarding areal estate transaction, aBuyer or Seller shouldfrom the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Buyer and Seller acknowledge being advised by the Brokers in this transaction, as follows: (a) Sellers Agent. A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or subagent has the following affirmative obligations: (1) To the Seller: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller. (2) To the Buyer and the Seller: a. Diligent exercise of reasonable skills and care in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above. (b) Buyer's Agent A selling agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations. (1) To the Buyer A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer. (2) To the Buyer and the Seller: a. Diligent exercise of reasonable skills and care in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Patty PAGE 8 OF 11 V . INITIALS INITIALS ©2003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6-8/06E which does not involve the affirmative duties set forth above. (c) Agent Representing Both Seller and Buyer. A real estate agent, either acting directly or through one or more associate licenses, can legally be •the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. (1) In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer. a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Seller or the Buyer. b. Other duties to the Seller and the Buyer as stated above in their respective sections (a) or (b) of this paragraph 24.2. (2) In representing both Seller and Buyer, the agent may not without the express permission of the respective Party, disclose to the other Party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered. (3) The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect their own interests. Buyer and Seller should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. (d) Further Disclosures. Throughout this transaction Buyer and Seller may receive more than one disclosure, depending upon the number of agents assisting in the transaction. Buyer and Seller should each read its contents each time it is presented, considering the relationship between them and the real estate agent in this transaction and that disclosure. Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to this transaction may be brought against Broker more than one year after the Date of Agreement and that the liability (including court costs and attomeys' fees), of any Broker with respect to any breach of duty, error or omission relating to this Agreement shall not exceed the fee received by such Broker pursuant to this Agreement; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct.of such Broker. 24.3 Confidential Information: Buyer and Seller agree to identify to Brokers as "Confidential" any communication or information given Brokers that is considered by such Party to be confidential. 25. Construction of Agreement. In construing this Agreement, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Agreement. Whenever required by the context, the singular shall include the plural and vice versa. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Agreement shall mean and refer to calendar days. This Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. 26 Additional Provisions: Additional provisions of this offer, if any, are as follows or are attached hereto by an addendum consisting of paragraphs 26.1. through 26.4. . (if there are no additional provisions write "NONE ".) 26.1. In no event, without the Owner's written approval, shall the close of escrow be later than December 15, 2007 or earlier than October 21, 2007. 26.2. Buyer shall have ninety (90) days from the Date of Agreement to obtain a Conditional Use Permit and all other permits or approvals and waive such contingencies._ In the event Buyer requires additional time to obtain required governmental approvals, _ Seller shall grant an additional 14 days for Buyer to obtain his CUP and /or waive the CUP contingency if, and only if, the Buyer releases �jS `+ $19;999:98 of its deposit to Owner, through escrow on or before the 90th day after the Date of Agreement. It is specifically understood that such released funds will be non - refundable to the Buyer, but applicable to the purchase price. Notwithstanding anything to the contrary contained within the Agreement, if not satisfied and waived within the time limits contained in the Agreement, all other Buyer contingencies (excepting the CUP referenced above) shall be satisfied and waived on or before the 45th day after the Date of Agreement or the the Owner may unilaterally terminate the Agreement and escrow and there shall be no further obligations between the parties. • 26.3. Buyer may terminate this Agreement "for anv reason" within the first 14 days after the Date of Agreement after which date each contingency item will be independent and specific per the terms of the Agreement. 26.4. Any and all previous Offers or Counter Offers submitted by the Buyer or Owner are null and void and of no force or effect. 'ION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY R AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS AGREEMENT OR THE TRANSACTION TO IT RELATES. THE PARTIES ARE URGED TO: SEEK ADVICEOF COUNSELAS TOTHE LEGALAND TAXCONSEQUENCES OFTHIS AGREEMENT. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OFTHE PROPERTY. SAID INVESTIGATIO 1LD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, INTEGRITY AND CONDITION OF ANY STRUCTURES AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PROPERTY FOR ?R'S INTENDED USE. PAGE 9 OF 11 INITIALS 6&q- INITIALS 02003 • AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA -"106E ,RNING: IF THE PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THIS AGREEMENT MAY NEED BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED. NOTE: 1. THIS FORM IS NOT FOR USE IN CONNECTION WITH THE SALE OF RESIDENTIAL PROPERTY. 2. IF THE BUYER IS A CORPORATION, IT IS RECOMMENDED THAT THIS AGREEMENT BE SIGNED BY TWO CORPORATE OFFICERS. The undersigned Buyer offers and agrees to buy the Property on the terms and conditions stated and acknowledges receipt of a copy hereof. BROKER: Curtis & Associa Attn: Don Gregg Title: Address: 3187 -F Airway Ave. Costa Mesa, CA 92626 Telephone:( 714) 5 4 0 -14.0 0 Facsimile:(_) Email: dongre qq @sbc g 1oba1.net Federal lD No. BUYER: Costa Mesa Sanitary District By: ��A Date: ugust 31 2007 Name Printed: Thomas A. Fauth Title: Assistant Manager Telephone:(949) 645 -8400 x 222 Facsimile:(_) Date: Name Printed: Title: Address: Telephone:(_) Facsimile:( ) Email: Federal ID No. 27. Acceptance. 27.1 Seller accepts the foregoing offer to purchase the Property and hereby agrees to sell the Properly to Buyer on the terms and conditions therein specified. 27.2 Seller acknowledges that Brokers havebeen retained to locate aBuyer and are the procuring cause of the purchase and sale of the Property set forth in this Agreement. In consideration of real estate brokerage service rendered by Brokers, Seller agrees to pay Brokers a real estate Brokerage Fee in a sum equal to 4 . 5% % of the Purchase Price to be divided equally between Seller's Broker and Buyer's Broker. This Agreement shall serve as an irrevocable instruction to Escrow Holder to pay such Brokerage Fee to Brokers out of the proceeds accruing to the account of Seller at the Closing. 27.3 Seller acknowledges receipt of a copyhereof and authorizes Brokers todeliver a signed copyto Buyer. NOTE: A PROPERTY INFORMATION SHEET IS REQUIRED TO BE DELIVERED TO BUYER BY SELLER UNDER THIS AGREEMENT. BROKER: Collins Commerc INITIALS Corporation PAGE 10 OF 11 SELLER: David Hester • r� IIIIIIIIIIIIWWW� mod/ INITIALS ©2003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA- 6 -8 /06E •Attn: Gary Marquis By: Title: Date: August 2007 Address: 4041 MacArthur Blvd. , Suite 510 Name Printed: David Hester Newport Beach, CA 92660 Title: Telephone:(9 4 9) 8 51- 2 3 0 0 Telephone:(_) Facsimile:(_) Facsimile:(_) Email :gmarguis @collinscommercial.com Federal ID No.: Date: Name Printed: Title: Address: Telephone:(_ ) Facsimile:(_ ) Email: Federal ID No.: NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213) 687 -8777. Fax No.: (213) 687 -8616. • 0 INITIALS © Copyright 2003 By AIR Commercial Real Estate Association. All rights reserved. No part of these works may be reproduced in any form without permission in writing. PAGE 11 OF 11 INITIALS 02003 - AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM OFA -6-8 106E Contact: Joan Revak 628 W. 19' Street Clerk of the District Costa Mesa, CA 92627 -2716 Phone 949 - 645 - 8400, X223 • Fax 949 - 650 -2253 Press V11 FOR IMMEDIATE PUBLICATION • The Costa Mesa Sanitary District is pleased to announce its Residential Sewer Lateral and Clean Out Financial Assistance Program. The purpose of the program is to assist and encourage residents to regularly clean and maintain their sewer lateral to prevent sewer backups and spills. Sewer spills cause very expensive damage to the interior of a house and the environment, particularly the beaches. • CONTRIBUTION BY THE COSTA MESA SANITARY DISTRICT The District will contribute 50% of the resident's costs up to a maximum of $1,800 total per residential parcel as follows: • Up to 50% of televising the lateral interior • Up to 50% of cleaning the lateral • Up to 50% of the cost of installing a clean out • Up to 50% of lateral reconstruction costs The program is now in effect and is only available for residential property, not commercial or industrial property. To apply, contact the District at 949 - 645 -8400, ext. 229. "M August 31, 2007 Mr. Robin B. Hamers, Manager/ District Engineer Costa Mesa Sanitary District 628 West 19th Street Costa Mesa, California 92627 -2718 Re: Response to the 2006/07 Contractor Evaluation Dear Mr. Hamers: CR &R Incorporated is proud to be a part of this evaluation process and concurs with the Evaluation and Recommendation of Staff. The following is CR &R's written response to areas of concern in the 2006 -08 Evaluation: Part II — EVAL UATION OF CONTACTOR IS PERFORMANCE Contractor's Review and Comments to the individual Evaluation Areas are as follows: Section 1. Cost /Price Controls 1. CR &R Accounting of Revenue to the District.has been submitted to staff for the fiscal year ending September 30tH 2. The CMSD processing cost at CRT was not annually adjusted and there are no other customers with like requirements to implement the "most favored nations" clause of this contract. 3. There have been no CR &R corporate structural changes or change of stock ownership since inception of this contract. Section 2. Schedule control. No comments Section 3. Contract Administration. Some minor discrepancies are reviewed with each monthly billing. The timing of billing vs. the receipt of data is very short, necessitating each month's review and refinement. Rate Stabilization reports have remained consistent for the last several months. Invoices to the District for grandfathered 90- gallon cans past the August 31, 2006 deadline have been internalized to Contractor and the final billing was submitted to Mr Thomas Fauth for payment. CR &R INCORPORATED 11292 WESTERN AVE. 0 8 BOX 125 TON, CA 90680 826.9677 714.826.9049 714.890.6347 Fax CRRWASTESERVICES.COM rcycla6 �a p =_i Going forward on these grandfathered barrels should be a matter of discussion in the future. 0 Occupancy reports continue to have a monthly variance of approximately 100 households. CR &R will implement an audit of all users in December of 2007 once the District's new computer system is functioning with the latest County Assessor's data. Complaint log submittal has not been submitted on a monthly basis. This procedure has been corrected with logs to be submitted by Karen Kennedy of Customer Service within 3 -days of the end of each month. CR &R submitted a minor route day change, which has not yet been implemented. This request was to better balance our daily collections and to minimize overtime for our drivers. CR &R is currently awaiting the City of Costa Mesa's decision to alter street - sweeping schedules. No changes will be implemented without CMSD and City concurrence. Rate Stabilization Reports will be submitted quarterly as specified to allow the District better planning of anticipate revenues. Section 4. Responsiveness to Government. • Rate Stabilization Reports will be submitted quarterly as noted in the contract. • Credit payments have been sent and received by the District. In the future, District will direct all payments to Dean Ruffridge for processing and payment. • Telephone Book collection and payments will be revised for better service and accountability per District direction. Better estimates of total number of books will be performed in the upcoming collection program. • Christmas tree collections are heaviest following the 5 -days after the holiday. The first couple days are not heavy. Contractor will add crews for the heavier times following the holiday with continued services for 3 -weeks vs. 2 -weeks in the Contract. Section 5. Contract Compliance with Operational Requirements. • Accumulated Trash Issue: CR &R will continue to address with our collection drivers their assistance in reporting excess trash at residential units within the CMSD areas. This is specifically areas on private properties where there could be a health or sanitation issue created. Any reportable areas will be directed to CMSD staff for further review. 0 ® • Voce mail was checked after this correspondence and it was working according to contract. Our IT department was notified to continue to monitor this service to verify operations are in order. • Educational Brochures. CR &R will prepare for the CMSD review and concurrence a mailer for distribution to all customers explaining the CR &R collection and CRT processing program. This will be completed by the end of the 2007 calendar year, for distribution in 2008. • Drivers have been notified to be alert and report graffiti barrels for replacement in a timelier manner. • CR &R and CRT will strive to submit Waste Diversion Reports within the first three business days of the month for the prior month. • The complaint log submittal procedure has been corrected with logs to be submitted by Karen Kennedy of Customer Service within 3 -days of the end of each month. Section 6. Key Personnel. Some minor discrepancies are reviewed with each billing. The timing of billing vs. the receipt of data is very short, necessitating each month's review and refinement. Again, CR &R thanks the Costa Mesa Sanitary District and staff for the opportunity to provide quality service for CMSD customers. Should anything further be needed to complete this Evaluation Process, please feel free to call at any time. Sincerely, � , Dean A. Ruffridge; Senior Vice President CC. Thomas Fauth David Ronnenberg Royden Fuj imori Norma Fernandez LJ CONTRACTOR'S PERFORMANCE EVALUATION (Para 40 ) • Agreement Between the Costa Mesa Sanitary District of Orange County, California, hereinafter called "DISTRICT ", and CR &R, Incorporated. A California corporation, hereinafter called "CONTRACTOR" for Trash Collection, Hauling, Special Service, Support of DISTRICT Programs and Recycling_ Services, Agreement Type: Ten -Year First Term Cost Reimbursement Contract Reverting to a Six - Year "Evergreen" Contract Upon The Expiration of the Fourth Year of the Basic Six - Year Term. Award Date: July 20, 2006 Example Contract Value Per Contract Appendix A: FY2006 -07 FY2007 -08 FY2008 -09 Trash Hauler $2,340,120 $2,340,120 $2,340,120 Recycling Disposal $2,412,564 $2,485,672 $2,558,780 (Recycling Tonnage based on forecasted tonnage) . Service Description: CONTRACTOR furnishes all labor, material and equipment necessary for the collection of all solid waste as hereinafter defined from single family dwellings and multi - family dwellings using curbside service within.the boundaries of the DISTRICT except certain residences in the geographical limits of the City of Newport Beach as said boundaries now exist or may hereinafter exist and the disposal of such solid. CONTRACTOR provides containers for all single- family and small multi - family residents utilizing curbside collection inside the DISTRICT. CONTRACTOR rp ovides transfer station services for the acceptance of Solid Waste from DISTRICT for the purpose of recovery and reclamation of recyclable materials and the transfer of un- recvclable residue to Orange County landfill sites or otherwise as the DISTRICT may direct. Name of CONTRACTOR Address of CONTRACTOR CR &R, Incorporated 11292 Western Avenue Stanton, CA 90680 714 - 826 -9049 Evaluation Term: XX Interim Final for the period: July 20, 2006 — June 30, 2007 • PART I - EVALUATION OF CONTRACTOR'S PERFORMANCE The CONTRACTOR should be evaluated using the following ratings: E = Excellent: CONTRACTOR exceeded the requirements. Explain how. S = Satisfactory: CONTRACTOR met the requirements. If the CONTRACTOR had difficulty meeting the requirements, explain why. U = Unsatisfactory: CONTRACTOR did not meet all of the requirements. Explain all noncompliances or unsatisfactory performance, and whether and how the CONTRACTOR was at fault, where applicable.. N/A = Not Applicable. Does not apply to the contract. EXPECTATION = DISTRICT'S expected corrective action or recommendation or notice for continued Excellent performance. • • 2 1. Cost/Price Control (Para 2, 11 and Exhibit "A "). Rating: E S_X_U N/A . Consider: Did the CONTRACTOR complete the contract within the contract amount or did the CONTRACTOR experience cost growth? Were unnecessary cost /price change proposals submitted? Comments: 1. CONTRACTOR completed weekly collections in a timely manner and did not experience cost growth passed on to the DISTRICT. CONTRACTOR did not submit any cost/price change proposals during this performance period. Rating: E S X U N/A . Trash Revenue Accounting (Paras 28, 34) Rating: E S X U N/A . CMSD Has Most Favorable Rate (Para 31) Comments: 1. CONTRACTOR provided an accounting of revenue to the DISTRICT, but later than an expected quarterly basis during this first performance period. CONTRACTOR has taken measures to ensure DISTRICT has the Most Favorable Rate given to any customer using service similar to the DISTRICT. 2. Schedule Control ( Paras 7; 8, 9,10). Rating: E S_X — U N/A Consider: Did the CONTRACTOR meet the original performance schedule for route collections? Did the reported number of missed collections exceed three per month? Comments: 1. CONTRACTOR met the performance schedule for route collections. CONTRACTOR took appropriate actions to revisit reported missed collections, averaging approximately three per month or less. 3. Contract Administration (Para 11C). Rating: E S X U N/A Consider: Did the CONTRACTOR respond to Government correspondence in a timely manner? Were contract modifications promptly executed? Were weight tickets submitted on time to validate invoicing? Did CONTRACTOR submit the occupancy report within the first three days of the month (Paras 4, 17)? Were invoices submitted correctly? Were contract discrepancies /problems reported promptly? Were Rate Stabilization reports submitted quarterly for additional containers (Para 11C)? Rating: E S U N/A X . Corporate Structure Changes Communicated (Articles, Bylaws, stock register /ownership, Statements) (Para 5) Rating: E S X U N/A . Timely Weight Ticket Submittals (Para 16) 3 • Rating: E S X _U N/A . Justification of CONTRACTOR Rates (Para 18) Rating: E S U N/A X .$500 DISTRICT Service Calls Paid (Para 22) Rating: E S X U N/A Green Card Edit Submissions (Para 25) Rating: E S. X U N/A . All Contracts provided to CMSD (Para 27) Rating: E S X U N/A Annual Facility Tours Provided (Para 32A) Rating: E S U N/A X . Annual Seminar Conducted -2 -Year Flyer (Para 32B) Rating: E X S U N/A Biennial Brochure Mailout (Para 32C) Rating: E S X U N/A Established $10,000.00 Public Education Fund (Para 32D). Rating: E S X U N/A . Provided $500.00 Recycling Cash Donation (Para 32E) Rating: E S U N/A X Triennial HHW Pickup (Para 32F) 'Rating: E S X U N/A Annual $10,000.00 Cash or Services (Para 32F) Rating: E S U N/A X . Annual Safety EXPO Displays - $200.00 Prizes (Para 32B) Rating: E S X U. N/A Full Expenditure by end of FY (Para 32I) Rating: E S X U N/A Annual Audited Financial Statements Provided with Audit Trails an d All Recycled Materials Revenue (Para 34) Rating: E S X U N/A .$5,000.00 Anti - Scavenging Provided (Para 36) Rating: E S X U N/A Master Manifest. Availability (Para 37) Rating: E S U N/A X Master Manifest Delivered Upon Request (Para 37) Rating: E S X U N/A . Tonnage Documentation by Truck Identification Number, Route and Date Electronically on the First Day of Each Month (Para 37) Rating: E S X U N/A . 50 Year Record Maintenance (Para 37) Rating: E S U N/A X . Master Manifest Completeness (Upon CMSD Request) (Para 37) Rating: E S X U N/A . Annual Performance Review Participation (Para 40) Rating: E S X U N/A . DISTRICT Indemnification/Defense/ Hold Harmless (Para 42) Rating: E S X U N/A . $50,000.00 Performance Bond Maintained (Para 44) Rating: E S X U N/A $5,000,000.00 Public Liability Policy (Para 45) Rating: E S_ X U N/A . Worker's Compensation Insurance Maintained (Para 46) i 2 Rating: E S U X N/A Occupancy Addresses and Parcel Number ✓� Reconciliation (Paras 4 A, 4 B, 4 C) Rating: E S X U N/A . Federal, State and Local Law Compliance (Para 47) Rating: E S X U N/A . Appropriate Licenses and Permits Maintained (Para 48) Rating: E S X U N/A . Lack of Employment Discrimination (Para 49) Rating: E S X U N/A . Drug Awareness Program Established and Maintained (Para 50) Rating: E S U N/A X—. 40% Or Greater Stock Assignment (Para 51) Comments: 1. CONTRACTOR did not submit any contract modifications during this performance period other than to request to modify routes to level the tonnage collections per day to approximately 160 tons per day. The City of Costa Mesa denied the request to retain street sweeping on the day following trash collection for changed routes. CONTRACTOR also submitted a separate proposal to collect e -waste which the Board of Directors elected to not pursue due to costs. a. EXPECTATION: CONTRACTOR followed the proper procedure. Future route modification requests also may require City of Costa Mesa reviews and are dependent on the ability of the City to maintain street sweeping on the day following trash collection for affected service addresses and prevent customer complaints. 2. Documentation deliveries including weight tickets, invoices and corrections has been Satisfactory. a. EXPECTATION: CONTRACTOR should submit Rate Stabilization reports within the first week of the month following each quarterly period resulting in four reports annually. 3. The Occupancy Report is usually sent within the first three days of the month, but is incomplete in that it does not include the list of new and deleted addresses causing a delay in DISTRICT reporting to the Board of Directors. Additionally, there continues to be a discrepancy in the number of new parcels added and the addresses CONTRACTOR submits to the DISTRICT. Sometimes the "New Service Addresses" list only reflects there are new residence owners as opposed to the needed information of new service addresses. a. EXPECTATION: CONTRACTOR should submit complete and accurate new and discontinued service addresses and parcel numbers with the monthly Occupancy Report. 4. The DISTRICT received periodic requests to change route collection times. One, specific request earned written appreciation from the Back Bay Village when the collection time was returned to 7:30 A.M. in February 2007. a. EXPECTATION: Continue Excellent customer service. 5. CONTRACTOR did not meet the intent of paragraphs 4A, 4B and 4C by submitting verified Occupancy data including addresses and parcel numbers. 5 a. EXPECTATION: CONTRACTOR is expected to submit occupancy data to the DISTRICT including parcel number, address and unit number (as applicable). The DISTRICT submits data to the County of Orange Auditor- Controller as a special assessment for each fiscal year of July 1 through June 30 based on the number of units per parcel. 4. Responsiveness to Government. Rating: E S X U N/A . Consider: Were complaints from the DISTRICT resolved in a reasonable and cooperative manner? Were telephone calls responded to promptly? Were controversial issues resolved amicably? Was the CONTRACTOR reasonable and responsive to the DISTRICT'S needs? Rating: E X S U - N/A Public Outreach (Paras 25, 32) Rating: E S X U N/A Large Item PickUp (Para 15 D) Rating: E S X U N/A Large Item PickUp Notices (Para 15 D) Rating: E S X U N/A 5 Additional Large Item PickUps/Month (Para 15D) Rating: E S X U N/A Special Programs (Para 15) Rating: E S X U N/A Telephone Directory Collection (Para15A) Rating: E S X U N/A Christmas Tree Collection (Para 15B) Rating: E S X U N/A Holiday Collections (Para 10) Rating: E X S U N/A Special/Humanitarian Requests (Para 15C) Rating: E S X U N/A Up to 12 Excess Trash Pick - Ups /Year (Para15C) Rating: E S X U N/A Transfer Station (Para 29) Rating: E S X U N/A Full -Time Green Waste Processing (Para 33) Rating: E X S U N/A Site Access to DISTRICT (Para 38) Rating: E X S _U _N/A Plant Tours On Request (Para 39) Rating: E S U N/A X DISTRICT Audit Rights Honored (Upon CMSD Request) (Para41) Comments: 1. CONTRACTOR Staff continued to provide polite, knowledgeable and courteous customer service to the DISTRICT and residents. a. EXPECTATION: Continue Excellent customer service. 2. CONTRACTOR Staff were very responsive in September 2006, January 2007, and March 2007 to DISTRICT requests to provide additional standardized containers to the City of Costa Mesa Building Division to assist the City in providing plans to the DISTRICT. a. EXPECTATION: Continue Excellent support to DISTRICT needs. R 3. Documentation deliveries including weight tickets, invoices and corrections has been Satisfactory. The improved Satisfactory area in reporting regarding the additional container sales and cash receipts. All reports have been received. a. EXPECTATION: CONTRACTOR should submit Rate Stabilization reports within the first week of the month following each quarterly period resulting in four reports annually. 4. CONTRACTOR promptly provided weekly Large Item Collection Program reports. However, the tonnage incorrectly included the tare weight of the collection vehicle, inflating the white goods collection tonnage. CONTRACTOR corrected the error upon DISTRICT inquiry for credit payment on October 4, 2006 for the sum of $60,706.57. Corrected white goods tonnage totaled $7,993.35. DISTRICT had not received credit payment as of March 23, 2007. CONTRACTOR did not respond to DISTRICT verbal inquiries in a timely manner on several instances regarding this area. a. EXPECTATION: CONTRACTOR should take actions to prevent this from recurring. 5. CONTRACTOR delivered telephone directory collection dumpsters to the schools in a timely manner but collection counts were sporadic and less accurate than expected as several schools contested the attributed counts. Schools depend on the accuracy of the counts as the participation funds awarded are partially dependent on the number of telephone books collected. a. EXPECTATION: CONTRACTOR should improve the telephone directory counting methodology. 6. Timely responses to DISTRICT calls and emails were less than desired at times. • On most occasions, requests were resolved. However, CONTRACTOR did not always provide courtesy return calls acknowledging the request or actions taken. CONTRACTOR Staff communications to the DISTRICT have improved since March 2007, but more improvement is needed. Note: Liaison communications remained very timely and responsive. a. EXPECTATION: CONTRACTOR should provide more timely reply communications acknowledgements to DISTRICT in selected areas. 7. Christmas Tree collections took three weeks longer than the scheduled 12 days to complete, even with additional trucks, resulting in numerous service address requests and complaints. a. EXPECTATION: CONTRACTOR should re- evaluate the collection process and either determine improvements or increase the schedule for completion, along with notifying service addresses of modified schedules. 8. CONTRACTOR exceeded normal requests for Humanitarian Assistance to 30130Royal Palm in providing free dumpster service to assist in making the service address habitable for a senior citizen. The - DISTRICT provided a Letter of Appreciation to CONTRACTOR. a. EXPECTATION: CONTRACTOR should continue Excellent support. 9. CONTRACTOR remained reasonable and responsive to most of the DISTRICT'S needs, with the exceptions noted above. • 7 ® 5. Contract Compliance with Operational Requirements. Rating: E ' S_X_U N/A . Consider: Were all of the contract requirements met? Were problems resolved? Are the delivered items or services used for the purpose intended? If not useable, why not? Specifically rate the following operational subcategories: Rating: E S X U N/A Overall Quality of Service: Rating: E X S U N/A Fully Automated Collection (Para 6) Rating: E X S U N/A Prompt Weekly Collection (Para 7) Rating: E S X U N/A ..CONTRACTOR Equipment /Identification List/Environmentally Friendly Fuel Program .(Para 12) Rating: E S X U N/A Vehicle Waste Leak Prevention (Para 12) Rating: E S X U N/A Vehicle Waste Leak Clean -Up (Para 12) Rating: E S U N/A X Accumulated Trash Reported (Para 14) Rating: E S X U N/A Vehicle Cleanliness (Para 12) Rating: E S X U N/A Quarterly Signage Rotation (Para 12) Rating: E S X U N/A Customer Satisfaction is Number 1 (Paras 11C, 20, 22, 36) Rating: E S X U N/A . Inventory Management — Deliveries (Para 11) Rating: E S X U N/A Customer Changeout Requests Rating: E S_X_U N/A Accuracy, Thoroughness and Timeliness Rating: E • S X U N/A Adherence to Approved Schedules (Paras 7, 8, 9, 10) Rating: E S X U N/A . Resolution of Delays (Para 10) Rating: E X S U N/A . Notice of Labor Disputes/Resolutions, (Para 10D) Rating: E S X U N/A Container Maintenance (Para 1113) Rating: E S X U N/A Rate Stabilization Management/Customer Satisfaction/Additional Container Revenue Review (Para 11C) Rating: E S_X_U N/A 8AM -5PM Office Hours (Para 21) Rating: E S X_U N/A Qualified Personnel Available During All Business Hours (Para 21) Rating: E S_X_U N/A After Hours Voice- mail/Replies (Para 21) Rating: E S U X N/A . Monthly Complaint Log Delivery (Reports, Complaints and Pleadings) (Para22) _Rating: E X S U N/A AB939 Compliance (Para 27) Rating: E S X U N/A AB939 Education Program Provided (Paras 32, 6) Rating: E S X U N/A Controllable Waste Delivered to MRF (Para 28) Rating: E S X U N/A Waste Diversion (Para 30) Rating: E S X U N/A Residue Sent to Designated Disposal Facility I Rating: E S X U N/A (Para 28) 50% Met 30) . Diversion Rate (Para Rating: E S X U N/A . Maintained Graffiti -Free Containers (Para 36) 0 Comments: 1. Documentation deliveries including weight tickets, invoices and corrections has been Satisfactory. The improved Satisfactory area is in reporting regarding the additional container sales and cash receipts. All reports have been received. a. EXPECTATION: CONTRACTOR should submit Rate Stabilization reports within the first week of the month following each quarterly period resulting in four reports annually. 2. CONTRACTOR took the initiative to balance service day collection tonnages in April 2007. The result was contingent on the ability of the City of Costa Mesa Maintenance Services Department to rearrange street sweeping for the service addresses selected to retain street sweeping following the day of trash collection. a. EXPECTATION: CONTRACTOR continue to streamline collection efficiencies and coordinate changes with both the DISTRICT and the City of Costa Mesa for street sweeping operations and to reduce potential customer complaints. 3. Waste Diversion Reports are not timely and, on occasions, are not received in time to present to the Board at the regular monthly Board of Directors meeting. Rarely is the report received in time for distribution with the Board packet. Routinely, the CONTRACTOR must be contacted to remind CONTRACTOR the report is needed for the Board meeting. Frequently the report is not faxed to the DISTRICT until an hour or so before the Board meeting. a. EXPECTATION: CONTRACTOR should submit Waste Diversion Reports within the first three business days of the month for the prior month. 4. CONTRACTOR did not provide a monthly log of complaints to the DISTRICT to assist the DISTRICT and the CONTRACTOR in resolving repeat situations. a. EXPECTATION: CONTRACTOR should provide a monthly log of complaints to the DISTRICT to assist the DISTRICT and the CONTRACTOR in resolving repeat situations, in accordance with paragraph 22. 5. CONTRACTOR ensured the DISTRICT was informed with the latest developments through six update memos during the CONTRACTOR — Union negotiations. a. EXPECTATION: CONTRACTOR should continue Excellent communication notifications for this and similar situations. 6. CONTRACTOR can improve the maintenance of Graffiti -Free Containers. a. EXPECTATION: CONTRACTOR should emphasize to drivers the need to report/maintain Graffiti -Free Containers throughout the DISTRICT. 7. Inconsistent after -hours voicemail capability. a. EXPECTATION: CONTRACTOR to monitor process to ensure a recorder with voicemail messages capability is continuously operational to allow next business day follow -up. 8. Graffiti -Free Containers remain an irritant particularly in multifamily residential unit areas. Z' • r1 L ® a. EXPECTATION: CONTRACTOR should emphasize drivers need to be more conscious of locations where standardized containers are marked with non - standard identification. CONTRACTOR might consider encouraging drivers to call in addresses with graffiti containers or providing matching green spray paint to the drivers to cover the graffiti during the route. In both examples a long - lasting identification tag system should be contemplated without distracting from the container appearance. 9. Summary overall DISTRICT Observations. a. CONTRACTOR drivers often go out of their way to return containers to correct locations. b. Drivers frequently readily take excess trash residents leave on the tops of container lids. c. CONTRACTOR replaces damaged units generally within one week of identification. d. Rarely, non - standardized containers (without the DISTRICT logo) are delivered to residents and place into service. e. The large item pick -up process did not flow as smooth this performance period as in past years. f. Route collection times sometimes varied dramatically from early morning to late afternoon causing customer complaints.. g. Standardized Containers occasionally are returned to the curb with the lids open. • 6. Key ersonnel (Paras 5, 24 . Rating: E S X U N/A Consider: Did Y ) g the personnel have the knowledge and expertise necessary to perform the operational and management requirements? Were changes in key personnel made? How often were they made? Rating: E S X U N/A DISTRICT Approved Ops Mgr (Para 20) Rating: E S X U N/A Liaison/Interfaces Appointed (Para 24, 54) Rating: E S X U N/A Driver Conduct/Uniforms /IDs (Para 26) Rating: E S X U N/A Evidence of Driver Scavenging (Para 26) Rating: E S X U N/A Driver Solicitation of Gratuities (Para 26) Rating: E S X U N/A Employee Handbook (Para 26) Comments: 1. CONTRACTOR submitted incorrect tonnage invoices (did not match weight tickets) for Santa Ana Heights during January and February due to new CONTRACTOR personnel. a. EXPECTATION: CONTRACTOR must improve tonnage invoice accuracies within CONTRACTOR'S control including personnel training and management oversight. 10 2. CONTRACTOR and DISTRICT Liaison representatives have effectively and • efficiently interacted to resolve many issues before the issues became problems and in support of special requests. Examples include the preparation and delivery of the customer notification postcards (photographs and message) and letters, standardized container transfer and e -waste collection signage. a. EXPECTATION: CONTRACTOR should continue Excellent coordination and cooperation. 7. Recommendation: Would you recommend award to this CONTRACTOR for future contracts? Yes X No . If no, please fully explain. . Name of Evaluator: 7horna,4-4, �aw*� Phone Number: 949 -645 -8400, x222 Evaluator: d1l4f tant"�l� Signature III& 117=10� Date: Aw ust 30, 2007 PART II - EVALUATION OF CONTRACTOR'S PERFORMANCE CONTRACTOR'S Review: I have reviewed the performance evaluation of CR &R under the July 20, 2006 Agreement. I do concur X I do NOT concur with it. The • attached comments consisting of 11 number of pages are returned herewith for review by an individual at a level above the contract management officer responsible for this contract. ' r Name of Authorized Reviewer: DAAD 1 o►,I µ fThone Number: 7 9 o Title of Review %, �n�s� ode• i Signatu : Date: Cl Lf j0-q- ©4461 " �pPA poc�K� i PART III - EVALUATION OF CONTRACTOR'S PERFORMANCE DISTRICT Review of CONTRACTOR'S Comments: I have considered the comments submitted on the performance evaluation of CR &R under the July 20, 2006 Agreement. The attachment to this form, consisting of number of pages, is my final decision on this evaluation. Name of Reviewer: Title of Reviewer: Phone Number: Signature: Date: • 0 • Water Boards: Sanitary Sewer Overflow Program California Home Page 1 of 4 Wednesday. August 29, 2007 'r. a T , VGM 0,, t ;.11►rl <>nspnrtE'tttptto,,n?y. WA Ti' Sanitary Sewer Overflow Program A sanitary sewer overflow (SSO) is any overflow, spill, release, discharge or diversion of untreated or partially treated wastewater from a sanitary sewer system. SSOs often contain high levels of suspended solids, pathogenic organisms, toxic pollutants, nutrients, oil, and grease. SSOs pollute surface and ground waters, threaten public health, adversely affect aquatic life, and impair the recreational use and aesthetic enjoyment of surface waters. Typical consequences of SSOs include the closure of beaches and other recreational areas, inundated properties, and polluted rivers and streams. Contents of this Web Page: • General Order Information • On -Line SSO Database Access and Use • Sewer System Management.Plan Development / Implementation • Sanitary Sewer Order Training • Historical Information • Contact GENERAL ORDER INFORMATION To provide a consistent, statewide regulatory approach to address SSOs, the State Water Resources Control Board (State Water Board) adopted Statewide General Waste Discharge Requirements (WDRs) for Sanitary Sewer Systems, Water Quality Order No. 2006 -0003 (Sanitary Sewer Order) on May 2, 2006. The Sanitary Sewer Order requires public agencies that own or operate sanitary sewer systems to develop and implement sewer system management plans and report all SSOs to the State Water Board's online SSO database. The Sanitary Sewer Order and its supporting documents can be viewed through the links below: • Statewide_ General WDRs for Sanitary Sewer.Syste_ms, WQO No. 2006 -0003 • Monitoring and Reporting, Program (No. 2006 -0003) • Fact Sheet (WQO No. 2006 -0003) All public agencies that own or operate a sanitary sewer system that is comprised of more than one mile of pipes or sewer lines which conveys wastewater to a publicly owned treatment facility must apply for coverage under the Sanitary Sewer Order. The application or Notice of Intent (NOI) for coverage under the Sanitary Sewer Order should have been submitted to the State Water Board by November 2, 2006 and is available at the link below: • NOI -Form - Notice of Intent to Comply with the Terms of the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems • Instructions for Completing ,the Form [ back to top j ON -LINE SSO DATABASE ACCESS AND USE The SSO database is used to collect and store an enrollee's (defined as an agency which is covered under the Sanitary Sewer Order) facility and organizational information (collection system questionnaire) and details of all SSOs which occur from an enrollee's sanitary sewer system (SSO reports). All of the information collected in the SSO database is entered by enrollees. State and Regional Water board staff cannot enter or modify any information in the SSO database. The SSO database is accessed through the California Integrated Water Quality System (C1 S), which is the State Water Board's regulatory and water quality information management system. Enrollees will automatically be assigned a CIWQS account to access the SSO database. The implementation of the SSO database is being phased in throughout the state on a regional basis as discussed below. http : / /www.waterboards.ca.gov /sso/ 8/29/2007 *ater Boards: Sanitary Sewer Overflow Program Page 2 of 4 Access to the SSO database allows enrollees to complete the collection system questionnaire and submit SSO reports as required by the Sanitary Sewer Order. The Sanitary Sewer Order requires enrollees to complete the collection system questionnaire within 30 calendar days of receiving their CIWQS user ID and password. The Legally Responsible Official for each enrollee will receive their CIWQS user ID and password, via email message, to access the SSO database according to the schedule below: 0 Regional Water Quality Control Board CIWQS User ID / Password Receipt Date Regions 4,8,9 December 1, 2006 Regions 1,2,3 March 30, 2007 Regions 5,6,7 August 1, 2007 Once the Legally Responsible Official has received their CIWQS user ID and password, the enrollee can register additional staff for individual access to CIWQS for submitting agency information to the SSO database. Instructions regarding this registration process are available on the CIWQS Help Center webpage. The Sanitary Sewer Order requires enrollees to begin reporting all SSOs to the SSO database according to the following schedule: Regional Water Quality Control Board Date Begin Reporting All SSOs Regions 4,8,9 January 2, 2007 Regions 1,2,3 May 2, 2007 Regions 5,6,7 September 2, 2007 The collection system questionnaire gathers information related to an enrollee's agency and facilities. This information will allow the performance of an enrollee's sanitary sewer system to be put into the context of site specific characteristics. The information collected includes population served, miles of pipe, and age of the sanitary sewer system. To view a copy of the collection system questionnaire, select the link below: • Collection System Questionnaire The SSO report collects detailed information on a specific overflow event. Enrollees are required to report all SSOs that result from a failure in any portion of a sanitary sewer system under their management. For the purposes of reporting, SSOs fall into one of two categories: Category 1 (greater threat to public health of water quality) and Category 2 (lesser threat to public health of water quality). A Category 1 SSO is defined as a failure in an enrollee's sanitary sewer system that results in a (1) discharge of sewage which equals or exceeds 1,000 gal, or (2) discharge of sewage to a surface water and /or drainage channel, or (3) discharge of sewage to a storm drainpipe which was not fully captured and returned to the sanitary sewer system. A Category 2 SSO is defined as any discharge of sewage resulting from a failure in an enrollee's sanitary sewer system which does not meet the criteria for a Category 1 SSO. SSO information reported by enrollees includes location of overflow, volume of sewage spilled, and cause of the overflow. A copy of the Category 1 and Category 2 SSO report form can be viewed at the links below: • Category_1 SSO Report • Catego_ry_2 SSO.Report If an enrollee does not have any SSOs in a calendar month, they are required to complete a no spill certification. The no spill certification form can be viewed at the link below: • No Spill Certification [ back to top I SEWER SYSTEM MANAGEMENT PLAN DEVELOPMENT / IMPLEMENTATION Every enrollee is required to develop and implement a sewer system management plan (SSMP). The SSMP documents an enrollee's program to properly operate and maintain its sanitary sewer system. Each SSMP should address the following elements: 1. Goal 2. Organization 3. Legal Authority 4. Operation and Maintenance Program 5. Design and Performance Provisions 6. Overflow Emergency Response Plan 7. Fats, Oils, and Grease (FOG) Control Program 8. System Evaluation and Capacity Assurance Plan 9. Monitoring, Measurement, and Program Modifications 10. SSMP Program Audits 11. Communication Program http : / /www.waterboards.ca.gov /sso/ 8/29/2007 ` Water Boards: Sanitary Sewer Overflow Program Page 3 of 4 For a detailed explanation of the SSMP elements, please refer to the Sanitary Sewer Order above. • The Sanitary Sewer Order gives enrollees a reasonable amount of time to develop and implement their SSMP with smaller communities having more time than larger ones. The time schedule for each enrollee to develop and implement their SSMP is presented below: • SEWER SYSTEM MANAGEMENT PLAN (SSMP) TIME SCHEDULE Completion Date TASK and Associated WDR Section Population Population Between Population Between Population > 100,000 100,000 and 10,000 10,000 and 2,500 < 2,500 SSMP Development Plan and Schedule August 2, 2007 November 2, 2007 February 2, 2008 May 2, 2008 No Specific Section Goal Section D 13 (i) November 2, 2007 November 2, 2007 May 2, 2008 May 2, 2008 Organization Section D 13 (ii) Legal Authority Section D 13 (iii) Operation and Maintenance Program Section D 13 (iv) November 2, 2008 May 2, 2009 November 2, 2009 February 2, 2010 Overflow Emergency Response Program Section D 13 (vi) FOG Control Program Section D 13 (iiv) Design and Performance Provisions Section D 13 (v) System Evaluation and Capacity Assurance Plan Section D 13 (viii) August 2, Monitoring and Program Modifications May 2, 2009 August 2, 2009 May 2, 2010 2010 Section D 13 (ix) Program Audits Section D 13 (x) Communication Program Section D 13 (xi) Final SSMP Implementation Enrollees are required to certify that the final SSMP and its constituent subparts are in compliance with the Sanitary Sewer Order within the time frames above. This certification is done electronically in the SSO database and will be available for use beginning July 9, 2007. Enrollees are also required to obtain their governing board's approval of the SSMP Development Plan and Schedule and final SSMP at a public hearing prior to certification as complete and in compliance. Enrollees do not send their SSMP to the State or Regional Water Boards for review or approval; but, need to make them available upon request. [ back to top ] SANITARY SEWER ORDER ENROLLEE TRAINING The State Water Board signed a memorandum of agree.ment.(MOA) with California Water Environment Association (CWEA) to develop a training course for the Sanitary Sewer Order. CWEA will offer the courses statewide to educate enrollees about the terms of the Sanitary Sewer Order, use of the online SSO database, and development of a sewer system management plan (SSMP). For details about the course content and schedule, please visit CWEA's website. Related Links: • • U.S. Environmental Protection, Agency - information on SSOs • Cal ifornia_Water_Environment Association — register for training on SSO reporting and SSMP development • Orange. County Sanitation _District — site contains resources for SSMP development and implementation http : / /www.waterboards.ca.gov /sso/ 8/29/2007 Water Boards: Sanitary Sewer Overflow Program Page 4 of 4 1 • CIWQS Help Center — technical support on access (e.g., user ID and password information and login questions) to and use of the SSO database [ back to top j • HISTORICAL INFORMATION • Written comments received on revised proposed Order; Prior to adoption and part of the public hearing process; Deadline for comments was April 24, 2006; Hearing was held on May 2, 2006. • Written comments received on proposed Order; Prior to adoption and part of the public hearing process; Deadline for comments was January 25, 2006; Hearing was held on February 8, 2006. ( updated 5/17/07 ) CONTACT If you have any questions regarding this program, please contact: Eric Maag Division of Water Quality State Water Resources Control Board emaag@waterboards.ca.gov Ph: (916) 445-9260 Back to Top .of_Pacle © 2003 State of California. Conditions of Use Privacy Policy L, 0 http : / /www.waterboards.ca.gov /sso/ 8/29/2007