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Agenda Packets - Board - 2002-07-11Ii t COSTA MESA SANITARY DISTRICT an Independent Special District Greg Woodside Vice President Jim Ferryman Director AGENDA Arlene Schafer President Art Perry Secretary Dan Worthington Director Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify themselves to the Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non - agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non - agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. In compliance with ADA, contact Joan Revak, (714) 754 -5087, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). Regular Meeting - July 11, 2002 BOARD OF DIRECTORS MEET 2ND THURSDAY OF EACH MONTH RECOMMENDED ACTION 1.. CALL TO ORDER — 4:00 p.m. — Costa Mesa Historical Society �/ II. PLEDGE OF ALLEGIANCE — Director Perry / .III. INVOCATION - Director Woodside ,IV. ROLL CALL V. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board, staff, or the public request specific items to be removed from the Consent Calendar for discussion, in which event the item will be removed from the Consent Calendar and considered in its normal sequence on the agenda. Reports /Minute Approval 1. Recycling Committee Meeting — June 11, 2002 Serving our community's solid waste and sewer colrection needs. costamesasanitarydistrict. org s COSTA MESA SANITARY DISTRICT July 11, 2002 i AGENDA Page 2 RECOMMENDED ACTION 2. Regular Meeting — June 13, 2002 3. Special Meeting — June 17, 2002 4. Special Meeting — June 24, 2002 Manager's Reports 5. Refunds Approve 6. Occupancy Report and payment to Costa Mesa Disposal — July 2002 Approve Engineer's Reports 7. Project Status Report Receive and File Treasurer's Reports 8. Financial Report as of June 30, 2002 Accept Report 9. Report of Monies on Deposit as of June 30, 2002 Receive and File 10. Warrant Register for July 2002 in the amount of $238,927.81 Approve Payment 11. Directors Expenses for the Month of June 2002 Ratify Expenses -------------------------------------- - - - - -- -END OF CONSENT CALENDAR --------------------------------------------- /VI WRITTEN COMMUNICATIONS VII. MANAGER'S REPORTS Anti- Scavenging and Screening of Trash Containers Enforcement Reports B. CMSD Strategic Plan 1. Year 2002 Strategic Planning Action Items 2. Mission Statement C. Recycling Reports 1. Waste Diversion Report — May 2002 2. Waste Diversion Report — June 2002 Consider Consider Adopt Revised Statement Serving our community's so rid waste and sewer co&r ction needs. costamesasanitarydrstrict. org Receive and File Receive and File P COSTA MESA SANITARY DISTRICT July 11, 2002 AGENDA Page 3 RECOMMENDED ACTION D. Contract Payment to CR Transfer for recycling Approve Subject to services and disposal for June 2002 Verification of Diversion Report by Staff 79f Corrected billing payment for August 2001 — October 2001 Approve /E. Professional Services Agreement — TRC — Ongoing Telemetry Execute Agreement Maintenance Recycling Committee — July 9, 2002 — 9:30 a.m. Director Worthington and Director Perry ✓11. Food Recycling Consider 2. Residential Trash Survey Consider VII /v 3. Mini - Telephone Book Recycling Program Accept Report ENGI'NEER'S ENGINEER'S REPORTS CXA. `11Santa Ana Regional Water Quality Control Board Waste Approve SSMP Subject to Comments Discharge Requirements (WDR) — CMSD Sewer System by Attorney & Independent Engineer Management Plan (SSMP) /'B. Project No. 155 — Sewer Master Plan Update Approve Subject to Comments by Attorney & Independent Engineer 2051 Newport Boulevard -2053 1. New CMSD Easements Rescind Prior Approved Easement & Accept Two New Easements 2. Resolution No. 2002 -659 - Vacating Existing Easement Adopt Resolution /D. 2002 -2003 Capital Improvement Program Report — Independent Approve Independent Review Engineer's Review & 2002 -03 CIP Report /E. Project No. 162 — Pilot Program for Grease Control 1. Professional Services Agreement — Ennix Inc., Testing Enzymes Execute Agreement and Bacteria /F. Emergency Work — Bear Street Sewer Line Rehabilitation Approve Payment IX. TREASURER'S REPORTS A. Costa Mesa Disposal CPI Adjustment Approve Increase Serving our community's solid waste and sewer collection needs. costamesasanitaryd zistrict. org COSTA MESA SANITARY DISTRICT :AGENDA July 11, 2002 Page 4 RECOMMENDED ACTION B. CR Transfer CPI Adjustment Approve Increase X. ATTORNEY'S REPORTS XI. LOCAL MEETINGS f . Orange County Sanitation District 1. Regular Meeting — June 26, 2002 (( /n Accept Report �B. Santa Ana River Flood Protection Agency P Z� 6A^, � d0 1. Full Agency Meeting — June 27, 2002 1 C. Independent Special Districts of Orange County (ISDOC) /D. Local Agency Formation Commission (LAFCO) tl) Accept Report r -P &CV Consider Consider 1. Costa Mesa and Newport Beach Annexations n Consider /E. Water Advisory ommittee of Orange Count WACO) /tl� Consider rY 9 Y Orange County Council of Governments (OCCOG) /1i� /�P' Oa Consider G. Chamber of Commerce Legislation Committee Consider ,/1H'. CSDA Consider /XII. OLD BUSINESS l�trivt III. NEW BUSINESS n SOT¢ /v IV PUBLIC COMMENTS ,/XV. ORAL COMMUNICATIONS VI. ADJOURNMENT Serving our community's solid waste and sewer collection needs. costamesasanitarydistrict. org • COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING JUNE 11, 2002 The Costa Mesa Sanitary District Recycling Committee met at 9:30 a.m. in conference room 1 A at the Civic Center, 77 Fair Drive, Costa Mesa. Directors Present: Dan Worthington, Arlene Schafer Staff Present: Rob Hamers, Tom Fauth, Joan Revak STANDARDIZED CONTAINER PROGRAM DISTRIBUTION PROGRESS REPORT AND CONTAINER IDENTIFICATION Mr. Fauth provided a summary of container orders for the period July 2001 through May 2002. As of June 6, 2002, containers have been ordered and invoiced as follows: 14,000 90 gallon $770,725.38 28,140 60 gallon $1,359,639.35 1,050 35 gallon $42,783.42 43,190 Total $2,173,148.15 Mr. Fauth reported the Roto invoices reflect a completion of the ordering process as the containers have been delivered to all 10 routes plus the initial inventory orders. Initial inventory orders were placed for 200 — 90- gallon and 50 — 35- gallon containers. AT &T memorialized the completion of the rollout of the final containers on May 7, 2002. To date, the District has ordered and delivered 9% above (to a total of 43,190 containers) the total number of containers estimated for the program at an approximate .6% cost under -run ($2,186,735.91) for the $2.2M program. The variances are due to differences in the number and sizes of containers requested by residents. The initial goal is to maintain approximately 50 -100 containers of various sizes in inventory at the Costa Mesa Disposal year. Initial orders will maintain these quantities and gradually decrease over the next six months. Serving our community's soiUwaste and sewer colxection needs. costamesasanitaodtstria org �SASANfT� *, � e�M H t S TrORA��` Costa Mesa Sanitary District Minutes of Recycling Committee Meeting June 11, 2002 Page 2 Discussion was held on the concern with standardized containers being left on the streets at many residences instead of being placed on the curb. Mr. Fauth gave an update on the container identification tags pilot program. WASTE DIVERSION Director Worthington presented the theory of encouraging residents to place more food in their garbage disposals thereby increasing the waste stream in the sewer system and decreasing the solid waste stream that requires pickup, transportation, sorting, and landfilling. Director Worthington questioned whether it was more cost effective to use the sewer system because the resulting biosolids by- product can be used as a land application. After discussion, the following questions were posed: 1. Does the food that now gets collected in the solid waste stream become composted? 2. If the food was removed from the solid waste stream, would the recyclables such as newspapers in the resulting solid waste stream become less contaminated and a higher diversion percentage achievable? 3. What percentage of the residential food waste stream is currently placed in the sewer system through the garbage disposal and would the public be receptive to a campaign to increase the percentage? 4. What are the implications to the Orange County Sanitation District (OCSD) of increasing the waste stream by the addition of more food and the associated increase in water? 5. What percentage of food waste in the sewer system ends up as biosolids versus going out through the ocean outfall? 6. What is the cost of producing Class A biosolids and the trucking costs to transport the biosolids to Kings County or Kern County? What are the long term costs associated with biosolids considering OCSD is contemplating a plant in Colton to process biosolids to Class A? Serving our community's solid waste and sewer colection needs. costamesasanitan drstrict, org 0 ,t Po[ATE��, • Costa Mesa Sanitary District Minutes of Recycling Committee Meeting June 11, 2002 Page 3 After additional discussion, President Schafer suggested Director Worthington request full Board consideration of the item due to the Staff effort needed to follow through with the research. LARGE ITEM COLLECTION PROGRAM — 2002 Ms. Revak reported the Annual Large Item Collection Program begins on Monday, June 24 and will run through the week of August 26, 2002, and provided a copy of a press release to be distributed to local newspapers. A sample of the door hanger that will be placed at the door of residences two weeks prior to the collection date was also presented. PUBLIC COMMENTS There were no public comments; no public in attendance. The meeting was adjourned at 10:38 a.m. Secretary President Serving our community's solid waste and sewer collection needs. costamesasanitarydistrict. org `l! TP • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 The Board of Directors of the Costa Mesa CALL TO ORDER Sanitary District met in regular session on June 13, 2002, at 12:00 p.m. in Room 1 -A of the Civic Center, 77 Fair Drive, Costa Mesa. President Schafer called the meeting to order at 12:00 p.m. Director Ferryman led the Pledge of Allegiance. Vice President Woodside gave the invocation. ROLL CALL ® DIRECTORS PRESENT: Arlene Schafer, Art Perry, Greg Woodside, James Ferryman, Dan Worthington DIRECTORS ABSENT: None STAFF PRESENT: Robin Harriers, Manager /Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Clerk of the District; Marc Puckett, Finance Director; Bobby Young, Finance; Ron Shef, District Ordinance Enforcement Officer OTHERS PRESENT: None . ............................... CONSENT CALENDAR . ............................... Secretary Perry motioned to approve the Consent Calendar with an amendment to Directors Expenses for the Month of May 2002, corrected to show Director Worthington in attendance at the May 9, 2002 regular meeting instead of Clovis, and the changes to the Occupancy Report. Director Woodside seconded. Motion carried unanimously. ��s" "'r'•. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING -,••o "��`,� JUNE 13, 2002 PAGE 2 REPORTS MINUTE APPROVAL Minutes of Recycling The Minutes for the Recycling Committee Meeting of Committee Meeting, June 11, 2002, were approved as distributed. June 11, 2002 Minutes of Investment The Minutes for the Investment Oversight Committee Oversight Committee Meeting of May 9, 2002, were approved as Meeting, May 9, 2002 distributed. Minutes of Regular The Minutes for the Regular Meeting of May 9, 2002, Meeting, were approved as distributed. May 9, 2002 Minutes of Special The Minutes for the Special Meeting of May 14, 2002, Meeting, were approved as distributed. May 14, 2002 MANAGER'S REPORTS REFUNDS In accordance with Resolution No. 96 -584, adopted by the Costa Mesa Sanitary District on April 17, 1996, the following refunds were granted subsequent to receiving a signed statement from the applicants: Refund request of Approved refund request to Marshall Gretmore $581.17 by: Marshall for property located at: 164 Flower Street, Costa Gretmore Mesa, CA 92627 -2836 Assessor's Parcel No. 452 - 234 -21 Number of units: 1 Trash Refund Totaling: $512.11 Sewer Refund Totaling: $69.06 Total Refund: $581.17 Reason: Parcel charged as 2 units. • • • COSTA MESA SANITARY DISTRICT _ MINUTES OF BOARD OF DIRECTORS REGULAR MEETING •�;ro " "�,�* JUNE 13, 2002 PAGE 3 OCCUPANCY REPORT Occupancy Report and The June occupancy report reflects the June 3, 2002 Payment of informational letter from Costa Mesa Disposal to the $172,859.52 to Costa District. CMD submitted their own occupancy report Mesa Disposal — June with a total of 21,034. Therefore, the total for June is 2002 21,034. Board directed Staff to prepare a warrant for $172,859.52 to Costa Mesa Disposal on July 1, 2002, for payment for June trash collection based on the June count of 21,034 provided Contractor fulfills obligation of the agreement. ENGINEER'S REPORTS Project Status Report TREASURER'S REPORTS Financial report as of May 31, 2002 Report of Monies on Deposit as of May 31, 2002 The Project Status Report dated June 2002, was accepted as submitted. The Financial Report for May 31, 2002 was accepted as submitted. The Report of Monies on Deposit as of May 31, 2002, was received and filed. Warrant 2002 -11 for Warrant Resolution #CMSD 2002 -12 was approved, June 2002 in the authorizing the President and Secretary to sign the amount of $670,140.48 warrant and instructing the Finance Department to draw a warrant from the Costa Mesa Sanitary District General Fund in the amount of $670,140.48. Directors Expenses for Director Expenses for the Month of May 2002 were the Month of May 2002 ratified with a correction to Director Worthington's as follows: 5/9/02, CMSD Regular Meeting showed Director Worthington in Clovis. Director Worthington was in attendance at the regular meeting. Director Ferryman: $684.40 Secretary Perry: $850.00 President Schafer: $1,025.50 Vice President Woodside: $680.00 Director Worthington: $850.00 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING '�,••o. "�,,s JUNE 13, 2002 PAGE 4 .......................... END OF CONSENT CALENDAR .......................... WRITTEN COMMUNICATIONS Mr. Hamers reported the District received no written communications. PUBLIC COMMENTS There was no public in attendance, no public comments. MANAGER'S REPORTS ANTI - SCAVENGING AND SCREENING OF TRASH CONTAINERS ENFORCEMENT REPORTS POLICE REPORT Mr. Hamers presented a memorandum providing the scavenging statistics for May as follows: Location Calls for Service Cite /Arrest Area 1 2 2 Area II 2 0 Area III 3 1 Area IV 0 0 TOTAL 7 3 DISTRICT ORDINANCE ENFORCEMENT OFFICER REPORT Mr. Hamers presented the ordinance enforcement summary report for the five -week period beginning April 22, 2002 and ending May 26, 2002. Mr. Shef distributed approximately 40 courtesy flyers during this period. Mr. Shef indicated the entire District is now utilizing the standardized containers, providing a uniform, cleaner appearance during trash pickup. Mr. Shef reported an overall satisfaction from most residents, but is receiving a few questions regarding old trash containers and disposal of large boxes. The container tag study is complete and placement of I.D. tags, where necessary, will begin at various multi - family dwellings. • r� • • COSTA MESA SANITARY DISTRICT 4 MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 roN►ri° PAGE 5 CMSD STRATEGIC PLAN YEAR 2002 STRATEGIC PLANNING ACTION ITEMS Mr. Hamers presented the Year 2002 Strategic Planning Action Items report and stated it will appear in all Board packets for the Board's reference. Mr. Hamers reported many of the items in the Strategic Plan have already been completed. Director Ferryman motioned to accept the Year 2002 Strategic Planning Action Items as presented. Secretary Perry seconded. Motion carried unanimously. Director Worthington inquired as to the status for placement of a Costa Mesa Sanitary District sign in front of City Hall. President Schafer advised the Board the City objected to the concept, stating a sign promoting the CMSD in front of City Hall would be confusing for the public. The City suggested placing the sign on the directory and the floor where the District is located. Staff is discussing available space with the City. MISSION STATEMENT Director Worthington requested the Board consider revising the Mission Statement to contain the word "health" in it. The adopted statement: "Serving our community's solid waste and sewer collection needs" The suggested modified statement: "Protecting our community's health by providing trash collection and sewer service" Staff reported they currently have approximately 6 reams of letterhead containing the adopted mission statement. Discussion ensued. Staff will work with the suggestions provided and bring back a suggested mission statement to the Board. ��,� " " " "•. COSTA MESA SANITARY DISTRICT a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 rour� PAGE 6 RECYCLING REPORTS WASTE DIVERSION REPORT — APRIL 2002 Secretary Perry motioned to receive and file the Waste Diversion Report for April 2002, showing a diversion rate of 50.07. Vice President Woodside seconded. Motion carried unanimously. WASTE DIVERSION REPORT — MAY 2002 Ms. Revak reported the Waste Diversion Report for May 2002 has not yet been received. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL FOR MAY 2002 Secretary Perry motioned to approve contract payment to CR Transfer for recycling services and disposal for the month of May 2002 in the amount of $160,128.48, subject to verification by Staff. Vice President Woodside seconded. Motion carried 5 -0. Mr. Fauth reported the payment for April did not process through the system last month so the May payment will contain payments for both April and May, pending verification of the May report HISTORY OF THE COSTA MESA SANITARY DISTRICT Mr. Hamers reported Staff has begun to assemble pieces of the District's history, at the suggestion of Director Worthington and with the concurrence of President Schafer, in order to memorialize the time from the formation in 1944 until the present time. Staff recommended the following: • Direct Staff to assemble a history of the District for review and approval by the Board. • Schedule the July 11, 2002, regular meeting to begin at 4:00 p.m. at the Costa Mesa Historical Society, 1870 Anaheim Avenue, Costa Mesa. Board and Staff may arrive anytime after 3:00 p.m. to view the facility and a tour will begin at 3:30 p.m. The tour would also include research by the Society of any references on file to the current Sanitary District Board members. COSTA MESA SANITARY DISTRICT s a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 PAGE 7 • Consider a nominal fee of $150 -250 to reimburse the Society for the use of the facility. • Direct Staff to prepare a letter to the City of Costa Mesa requesting any information learned about the Sanitary District at the upcoming 50 year anniversary of the City in year 2003 be sent to the District. Director Worthington motioned to approve the five -year membership fee of $250.00 to the Historical Society and the other bullet points as listed. Motion carried unanimously. CMSD REGULAR MEETING LOCATION Director Worthington requested a Board review of the reasons for holding the CMSD meetings at City Hall instead of an outside location. President Schafer felt it would be difficult for Staff to transport materials to another location on a regular basis. Mr. Harriers suggested the Board see how the July meeting at the Historical Society goes and make a determination after that. RECYCLING COMMITTEE — JUNE 11, 2002 — 9:30 A.M. DIRECTOR WORTHINGTON AND PRESIDENT SCHAFER STANDARDIZED CONTAINER PROGRAM Mr. Fauth provided a review of the summary sheet. The District will maintain approximately 50 -100 containers of various sizes in inventory at the Costa Mesa Disposal yard to provide additional or replacement containers for residents. Director Worthington reported the truck drivers are still placing the standardized container in the gutter area instead of back up on the curb. Director Worthington reported the tag survey has been completed and tags will be distributed by Mr. Shef as required. WASTE DIVERSION Director Worthington presented a theory and began discussion on encouraging the disposal of food waste into the sewer system, thereby decreasing the solid waste stream. Z COSTA MESA SANITARY DISTRICT a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING '�••o..��,,� JUNE 13, 2002 PAGE 8 Director Worthington estimated that if 40,000 residents of Costa Mesa disposed of approximately '/4 pound of waste in their garbage disposals each day instead of in the trash collection system, the decrease to the landfill system would be over 1,800 tons per year. An excerpt of the Recycling Minutes of June 11, 2002 follows: Director Worthington presented the theory of encouraging residents to place more food in their garbage disposals thereby increasing the waste stream in the sewer system and decreasing the solid waste stream that requires pickup, transportation, sorting, and landfilling. Director Worthington questioned whether it was more cost effective to use the sewer system because the resulting biosolids by- product can be used as a land application. After discussion, the following questions were posed: 1. Does the food that now gets collected in the solid waste stream become composted? 2. If the food was removed from the solid waste stream, would the recyclables such as newspapers in the resulting solid waste stream become less contaminated and a higher diversion percentage achievable? 3. What percentage of the residential food waste stream is currently placed in the sewer system through the garbage disposal and would the public be receptive to a campaign to increase the percentage? 4. What are the implications to the Orange County Sanitation District (OCSD) of increasing the waste stream by the addition of more food and the associated increase in water? 5. What percentage of food waste in the sewer system ends up as biosolids versus going out through the ocean outfall? 6. What is the cost of producing Class A biosolids and the trucking costs to transport the biosolids to Kings County or Kern County? What are the long term costs associated with biosolids considering OCSD is contemplating a plant in Colton to process biosolids to Class A? Discussion was held. Director Ferryman suggested Staff contact Integrated Waste Management Department to see if a study of this type has been conducted. ��, *' " " "' *.e COSTA MESA SANITARY DISTRICT "s o MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE ;�* JUNE 13, 2002 ro" "� PACE 9 Staff will contact Integrated Waste Management Department and provide a copy of the Recycling Minutes and inquire if a study of this type has been done. Staff will bring back the response to the Board. LARGE ITEM COLLECTION PROGRAM — 2002 Ms. Revak reported the Large Item Collection Program for 2002 begins on Monday, June 24 and will run through the week of August 26. A press release was sent out. Door hangers will be placed at the door of residences two weeks prior to the collection date. ENGINEER'S REPORTS SANTA ANA REGIONAL WATER QUALITY CONTROL BOARD WASTE DISCHARGE REQUIREMENTS (WDR) Mr. Hamers reported Staff will be bringing the proposed Sewer System Management Plan at the July CMSD meeting for Board approval. PROJECT NO. 155 — MASTER PLAN UPDATE Mr. Hamers reported the Independent Engineer's Report will be ready in July for the Board's review. 2051 -2053 NEWPORT BOULEVARD NEW CMSD EASEMENTS RESOLUTION NO. 2002 -659 — VACATING EXISTING EASEMENT Mr. Hamers requested continuation of this item to July. EMERGENCY SERVICES AGREEMENT — PREUSSAG PIPE REHABILITATION Mr. Hamers presented an Emergency Services Agreement between the Costa Mesa Sanitary District and Preussag Pipe Rehabilitation. Mr. Hamers reported the method was quick, inexpensive, and easy to use. Mr. Burns has reviewed the agreement and approved its contents. Mr. Burns suggested Mr. Hamers have them submit their rate sheet to be attached to the agreement. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 PAGE 10 Director Ferryman motioned to approve the Emergency Services Agreement with Preussag Pipe Rehabilitation. Secretary Perry seconded. Motion carried unanimously. TREASURER'S REPORTS SOLID WASTE FINANCIAL FORECASTING MODEL Mr. Puckett was instructed at the May Regular Board Meeting to bring back a model of a three- and five -year plan, based on the changes discussed at the May meeting, an ongoing $30,000 reallocation estimation from a 25/75 split of central administrative costs between solid and liquid program activities and $126,000 in a one -time increase of reallocation of bankruptcy proceeds from the Liquid Waste Fund to the Solid Waste Fund. Mr. Puckett presented the possible scenarios. Discussion ensued. Mr. Hamers requested Mr. Puckett prepare a final form of whatever is chosen to eliminate confusion between the three options. Director Worthington motioned to accept the 3 -year scenario. Secretary Perry seconded. Motion carried as follows: Aye: Directors Worthington, Ferryman, and Perry No: Directors Schafer and Woodside. Mr. Puckett will prepare a final approved budget and present that to the Board for clarity of record. RESOLUTION NO. 2002 -659 - 2002 -2003 DISTRICT BUDGET Mr. Puckett presented Resolution No. 2002 -659 — 2002 -2003 District Budget, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING A BUDGET FOR THE FISCAL YEAR 2002 -2003. Director Ferryman motioned to adopt Resolution No. 2002 -659 — 2002 -2003 District Budget subject to the effects of having adopted the 3 -year solid waste planning horizon. Director Worthington seconded. Motion carried unanimously. COSTA MESA SANITARY DISTRICT a MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 PAGE 11 RESOLUTION NO. 2002 -660 — 2002 -2003 INVESTMENT POLICY Mr. Puckett presented Resolution No. 2002 -660 — 2002 -2003 Investment Policy, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING THE 2002 -2003 STATEMENT OF INVESTMENT POLICY, AND AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ACCORDANCE WITH THE 2002 -2003 STATEMENT OF INVESTMENT POLICY, AND .AUTHORIZING THE SAID TREASURER TO DELEGATE TO HIS DEPUTY THE CARRYING OUT OF ANY SUCH TASKS. Director Ferryman motioned to adopt Resolution No. 2002 -660 — 2002 -2003 Investment Policy. Secretary Perry seconded. Motion carried unanimously. Secretary Perry left the meeting at 1:40 p.m. ATTORNEY'S REPORTS ORANGE COUNTY INVESTMENT POOL Mr. Burns presented a letter from Mr. Richard Hilde, Assistant Treasurer, County of Orange, dated May 22, 2002. Mr. Hilde's letter states the District, as an outside participant in the Orange County Treasurer's Investment Pool, adopted a resolution and authorization agreement with the County Treasurer. Since that time, the document has been modified to ensure that participants acknowledge "risk." The letter requests the District adopt a new resolution and authorize a new agreement that contains the revised language. Discussion ensued. Mr. Burns reported the resolution has elements to it that seem reasonable. It asks the District to acknowledge that there are risks in investing and that our Treasurer has reviewed the OCIP Investment Policy Statement. The resolution also states that the County retains the right to amend the IPS "without review or consent of the local agency." The resolution also fails to mention that the County is under a duty to act as a "fiduciary" subject to the prudent investor standard that the County Treasurer will "act with the care, skill, prudence, and diligence" of a prudent investor. Mr. Burns found the agreement legally acceptable if the District could live with the County Treasurer changing the Investment Policy without notice or consent of the District. +�y'tAMllj�,e- COSTA MESA SANITARY DISTRICT s" $ MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 PAGE 12 , Mr. Puckett stated the document requests the District acknowledge risk but does not require the County to acknowledge a fiduciary responsibility to the District in terms of how the Pool is managed. The District does not have any money invested in the Pool at the present time, but Mr. Puckett is authorized by the Board to invest in the future. The Board decided not to respond to the letter at this time. LOCAL MEETINGS ORANGE COUNTY SANITATION DISTRICT REGULAR MEETING — MAY 22, 2002 Director Ferryman passed around a letter from Mr. Blake Anderson to Senator Byron Sher, Chair of the Environmental Quality Committee. Director Ferryman discussed the waiver and requested the Board's input and direction. 0 Director Ferryman reported there will be a letter from Mr. Stanley Grant, UC Irvine scientist, appearing in the Los Angeles Times stating there is no direct evidence that the outfall is responsible for the pollution in Huntington Beach. Director Ferryman provided the agenda and notes for the Board's perusal. CMSD SPECIAL MEETING — JUNE 17, 2002, 4:00 P.M. AT NEIGHBORHOOD COMMUNITY CENTER President Schafer reminded everyone of the Special Meeting to be held at the Neighborhood Community Center. SANTA ANA RIVER FLOOD PROTECTION AGENCY EXECUTIVE COMMITTEE MEETING OF MAY 23, 2002 Director Ferryman reported he will serve on the Executive Board again. • COSTA MESA SANITARY DISTRICT G� j MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 PAGE 13 INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) QUARTERLY MEETING AND LAFCO ELECTION - MAY 30, 2002 President Schafer attended the May 30th Quarterly meeting and reported the following: • John Withers, Irvine Ranch Water District, was reelected • Charlie Wilson, Rancho Santa Margarita, was reelected • Newly- formed LOCAL coalition, Regional Advisory Board. Information distributed to Board. President Schafer will be on the Board Vice President Woodside left the meeting at 1:58 p.m. LOCAL AGENCY FORMATION COMMISSION ( LAFCO) COSTA MESA AND NEWPORT BEACH ANNEXATIONS President Schafer chaired the June 12th meeting and reported the following: • Passed the annual budget; all Special Districts will be charged the same as last year • Reviewed 10 candidates for the position of public member. • Susan Wilson reappointed as public member. • Established a contingency fund no less than $100,000 WATER ADVISORY COMMITTEE OF ORANGE COUNTY (WACO) President Schafer attended the WACO meeting of June 7th and reported the following: • Lisa Murphy, OCSD Communications Manager, on Orange County Sanitation District, spoke on the Ocean Outfall Study Update • Tom Ash, Water Conservation Manager, Irvine Ranch Water District spoke • Keith Coolidge gave a legislative update C, +�S, yANITj *'p COSTA MESA SANITARY DISTRICT s ° MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 13, 2002 PAGE 14 ORANGE COUNTY COUNCIL OF GOVERNMENTS ( OCCOG) President Schafer attended the Orange County Council of Governments meeting of May 23rd and reported the following: • Presentation from League of Cities asking for OCCOG to join the newly- formed LOCAL (Leave Our Community Assets Local) Coalition, CHAMBER OF COMMERCE LEGISLATION COMMITTEE President Schafer attended the May 15th Chamber of Commerce Committee meeting and reported the following: • Updates given • President Schafer provided an update on the completion of the standardized container program. CSDA President Schafer reported there was no CSDA meeting held in May CSDA has joined the LOCAL coalition. "BUILD A BINDER SERIES" — JUNE 7, 2002 — CHICO AND JULY 17, 2002 — CUCAMONGA, TOPICS: "ADMINISTRATION" AND "GOVERNING OFFICIALS" Director Ferryman motioned to allow Director Ferryman to attend the July 17, 2002 Build a Binder Series. President Schafer seconded. Motion carried unanimously. OLD BUSINESS There was no old business discussed. NEW BUSINESS SDRMA RENEWAL INVOICE IN THE AMOUNT OF $40,860.11 Director Ferryman motioned to approve payment of $40,860.11 for the SDRMA Renewal. Director Worthington seconded. Motion carried unanimously. • • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING %s $ JUNE 13, 2002 roNA� PAGE 15 ORAL COMMUNICATIONS Director Ferryman reported there is talk of suspending Proposition 98. ADJOURNMENT At 2:10 p.m., President Schafer adjourned the meeting. SECRETARY r� • PRESIDENT • • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING JUNE 179 2002 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Special Meeting on June 17, 2002 at 4:00 p.m., in the Hamilton Room at the Neighborhood Community Center, 1845 Park Avenue, Costa Mesa. Directors Present Directors Absent Arlene Schafer, Worthington Greg Woodside Arthur Perry, James Ferryman, Dan Staff Present: Robin Hamers, Manager /Engineer; Joan Revak, Clerk of the District; Marc Puckett, District Treasurer; Alan Burns, Legal Counsel; Bobby Young, Accountant; Debbie Bjornson, Permit Processing Specialist; Denise Gilbert, Permit Processing Specialist Others in Attendance: Nancy & Jack Skinner, 1724 Highland Drive, Newport Beach Eileen Murphy, 201 — 21st Street, Huntington Beach Greg Jewell, Surfrider, Huntington Beach, Seal Beach Chapter Dean Reinemann, P. O. Box 11540, Costa Mesa Judith M. Gielow, 469 E. 18`h Street, Costa Mesa Joey Racano, "The Waiver Killer" Dave Wielenga, OC Weekly Sandy Genis, 1586 Myrtlewood, Costa Mesa Linda Dixon, 77 Fair Drive, Costa Mesa Tom Egan, 1893 Parkview Circle, Costa Mesa Jim Miller, 3903 Marcus, Newport Beach 1. Presentation by OCSD Staff Bob Ghirelli, OCSD Director of Technical Services Kelly Christensen, OCSD George Robertson, OCSD Burton Jones, University of Southern California Mr. Ghirelli presented an overview of the on -shore and off -shore investigations for the sources of beach pollution and introduced the next two speakers. Mr. Christensen presented a detailed report on the on -shore investigation that identified sources of storm water and surface water runoff causing beach pollution. Costa Mesa Sanitary District Page 2 Minutes of Special Meeting Held June 17, 2002 0 Mr. Jones presented a detailed analysis of the study performed by a panel of scientists and oceanographers that was confirmed by an independent panel of scientists that the plume from OCSD outfall is not a source of beach pollution. II. Board and Staff Discussion The Board discussed the results of the investigations and asked a variety of questions to the panel members. III. Public Comments Public testimony was heard from the audience. IV. Consideration by CMSD Board of Directors After discussion, the Board of Directors concurred that another meeting should be held after the June 19, 2002, meeting of the Orange County Sanitation District where the options and costs for additional treatment will be discussed. The Board desired the meeting take place prior to the next regularly scheduled OCSD meeting on June 26, 2002. Therefore, the CMSD Board will meet at 8:00 a.m. on Monday, June 24, 2002 at the Neighborhood Community Center. V. Adjournment The Special Meeting adjourned at 6:38 p.m. Secretary President • • is • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING JUNE 24, 2002 The Board of Directors of the Costa Mesa Sanitary District attended a duly noticed Special Meeting on June 24, 2002 at 8:00 a.m., in the Paularino Room at the Neighborhood Community Center, 1845 Park Avenue, Costa Mesa. Directors Present: Arlene Schafer, Greg Woodside, Arthur Perry, James Ferryman, Dan Worthington Staff Present: Robin Hamers, Manager /Engineer; Joan Revak, Clerk of the District; Marc Puckett, District Treasurer. Allan Burns, Legal Counsel; Bobby Young, Accountant ri o-H Others in Attendance: Dennis Baker, 706 -1/2 Begonia, Corona Del Mar Allan Beek, 2007 Highland Drive, Newport Beach Judith M. Gielow, 469 E. 18th Street, Costa Mesa Irwin Haydock, PhD., 11570 Aquamarine Circle, Fountain Valley Greg Jewell, Surfrider, Huntington Beach, Seal Beach Chapter Doug Korthof, 1020 Mar Vista, Seal Beach Eileen Murphy, 201 — 21s' Street, Huntington Beach Larry Porter, 1501 Westcliff Drive, #201, Newport Beach Dean Reinemann, P. O. Box 11540, Costa Mesa I. Review of Orange County Sanitation District Information Mr. Hamers provided a synopsis of the Orange County Sanitation District Staff Report for the Interim Strategic Plan Update dated June 12, 2002. After the update the Board and Staff discussed the four options for wastewater treatment. II. Public Comments Mr. Doug Korthof voiced a complaint regarding the limitation of public comments to two minutes per speaker and cited a violation of The Ralph M. Brown Act, Section B3. Legal Counsel for the District, Alan Burns advised that setting of time limits on public comments is within the Board's discretion and the five - member CMSD Board of Directors agreed to two - minute time limit at this Special Meeting. Public testimony was heard from the audience. Costa Mesa Sanitary District Page 2 Minutes of Special Meeting Held June 24, 2002 • III. Consideration by CMSD Board of Directors After discussion, Director Woodside made the following motion: "Regarding the EPA 301(h) Waiver, Director Ferryman is directed to vote as he so decides. However, the Costa Mesa Sanitary District Board is of the opinion that based on the information available to date, full secondary treatment is the best available option and allows for better opportunities for recycling water." President Schafer seconded the motion. The motion passed 4 -1 by the following votes: Ayes: Arlene Schafer, Greg Woodside, Art Perry, James Ferryman Noes: Dan Worthington IV. Adjournment The Special Meeting adjourned at 9:37 a.m. Secretary President • n U ' MP03 -003 • COSTA MESA SANITARY DISTRICT _ DEPARTMENT OF FINANCE MARC R. PUCKETT INTEROFFICE MEMORANDUM DIRECTOR OF FINANCE TO: SANITARY DISTRICT BOARD MEMBERS FROM: MARC PUCKETT, DIRECTOR OF FINANCE COPY TO: JUDY VICKERS, REVENUE SUPERVISOR DATE: JULY 11, 2002 SUBJECT: TREASURER'S REPORT FOR THE MONTH OF JUNE, 2002 Attached is the Treasurer's Report for the month of June, 2002. This performance report lists the types of securities held, institutions the securities are purchased from, maturity dates and interest rates for all •securities in the District's investment portfolio as of the end of the reporting period. All of the District's investments as of June 30, 2002, are in compliance with the Investment Policy and the California Government Code. All market values provided in this report were obtained from Bank of New York, except for the Local Agency Investment Fund (LAIF). Market values for LAIF were provided by the State Treasurer's Office. The market values shown for the District's investment in LAIF represent the District's contractual rights to its LAIF account and does not represent the value of the underlying portfolio securities within the pool. As of June 30, 2002, the District has adequate cash reserves necessary to meet its obligations for the next six months. The weighted average stated rate of return (current yield) for the Sanitary District's investment portfolio as of June 30, 2002, was 4.34 %. The yield to maturity of the portfolio was 3.81%. The weighted average interest rate of the District's portfolio was 165 basis points (1.653 %) above the weighted average rate of return of the State of California Local Agency Investment Fund (LAIF) of 2.687% as of the end of the reporting period. The weighted average number of days to maturity for the total portfolio was 1040 days (2.8 years). The average duration for LAIF as of June 30, 2002, was 223 days. If you have any questions or need additional information, feel free to contact me directly. • MA C R. PUCKETT Director of Finance Attachments 0 0 COSTA MESA SANITARY DISTRICT TREASURER'S REPORT OF MONIES ON DEPOSIT AS OF JUNE 30, 2002 DEPOSITS OUTSTANDING ACTIVE ACCOUNTS BANK BALANCE IN TRANSIT CHECKS BOOK BALANCE Bank of America $ 30,247.55 7.00 181,801.44 (151,546.89) Reconciling Items 24,916.58 15,195.12 9,721.46 Total Active Accounts 30,247.55 24,923.58 196,996.56 (141,825.43) INVESTMENTS Local Agency Investment Fund 4,055,312.85 4,055,312.85 Sweep Account - - Medium Term Corporate Notes 681,095.25 681,095.25 Federal Agency Securities 6,004,230.00 6,004,230.00 • Total Investments 10,740,638.10 - - 10,740,638.10 TOTAL CASH & INVESTMENTS $ 10,770,885.65 24,923.58 196,996.56 10,598,812.67 MARC R. PUCKETT DATE City Treasurer • 2 W • COSTA MESA SANITARY DISTRICT INVESTMENT ACTIVITY SUMMARY FOR THE MONTH OF JUNE 30, 2002 Total investments outstanding as of May 31, 2002 Additions: Investment Purchases: Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Bank Total Purchases: Deductions: Investment Maturity Proceeds: Total Maturities: None Investments Called: Federal Home Loan Bank Federal Farm Credit Bank Total Investments Called: Net increase (decrease) in Sweep Account Net increase (decrease) in LAIF Purchase Maturity Coupon Yield to $ 11,385,638.10 Date Date Rate Maturily Cost 06/04/02 06/04/07 5.420% 5.420% 1,000,000.00 06/18/02 06/18/07 5.125% 5.125% 1,000,000.00 06/26/02 06/26/07 5.125% 5.125% 1,000,000.00 3,000,000.00 03/07/02 03/07/07 5.360% 12/06/01 03/06/06 5.000% Total investments outstanding as of June 30, 2002 5.360% (400,000.00) 5.000% (1,000,000.00) (1,400,000.00) (2,245,000.00) $ 10,740,638.10 3 • • COSTA MESA SANITARY DISTRICT INVESTMENT ACTIVITY SUMMARY FOR THE QUARTER ENDING JUNE 30, 2002 Total investments outstanding as of March 31, 2002 Additions: Investment Purchases: Federal Farm Credit Bank Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Bank Total Purchases: Deductions: Investment Maturity Proceeds: Total Maturities: None Purchase Maturity Interest Yield to $ 9,978,210.57 Date Date Rate Maturity Cost 05/26/02 03/05/07 5.550% 5.447% 1,004,230.00 06/04/02 06/04/07 5.420% 5.420% 1,000,000.00 06/18/02 06/18/07 5.125% 5.125% 1,000,000.00 06/26/02 06/26/07 5.125% 5.125% 1,000,000.00 4,004,230.00 Investments Called: Federal Home Loan Bank 03/07/02 03/07/07 5.360% 5.360% (400,000.00) Federal Farm Credit Bank 12/06/01 03/06/06 5.000% 5.000% (1,000,000.00) Total Investments Called: (1,400,000.00) Net increase (decrease) in Sweep Account (13,750.00) Net increase (decrease) in LAIF (1,828,052.47) Total investments outstanding as of June 30, 2002 $ 10,740,638.10 4 • 592 $ 199,079.48 FACILITIES REVOLVING FUND s 2,056,965.59 CMSD SOLID WASTE FUND 594 2,056,402.49 CMSD LIQUID WASTE FUND COSTA MESA SANITARY DISTRICT 6,286,287.49 SELF - INSURANCE FUND 602 24.48 INVESTMENTS AND INVESTMENT EARNINGS 701 53.14 AS OF JUNE 30, 2002 INTEREST COUPON INVESTMENT EARNED AT PURCHASE MATURITY INVESTMENT CUSIP NUMBER RATE AMOUNT 06/30/02 DATE DATE Local Agency Investment Fund - STP N/A 2.687% $ 4,055,312.85 — — Bank of New York- Sweep Account N/A 1.370% - — — MTCN (Texas Instruments Inc.) 882508AH7 6.125% 681,095.25 17,226.56 05/15/01 02/01/06 FFCB 31331LQM3 5.500% 500,000.00 7,104.17 09/28/01 03/28/06 FHLMC 312924JW4 5.000% 1,000,000.00 11,250.00 10 /10 /01 10/10/06 FHLB 3133NIHVS0 5.000% 500,000.00 5,069.44 10/18/01 10 /18 /06 FFCB 31331LPD4 5.550% 1,004,230.00 17,883.33 05/16/02 03/05/07 FHLB 3133MNU66 5.420% 1,000,000.00 4,065.00 06/04/02 06/04/07 FFCB 31331LW95 5.125% 1,000,000.00 1,850.69 06/18/02 06/18/07 FHLB 3133MPCP9 5.125% 1,000,000.00 711.80 06/26/02 06/26/07 TOTAL $ 10,740,638.10 65,160.99 • COMMENTS Bullet; S &P /Moodys rated as A /A2 *(CR - No change) Callable 03/28/02; callable with 7 days notice. Callable 01/10/02; discrete call with 5 days notice. Callable 01/18/02; discrete call with 5 days notice. Callable 09/05/02; callable with 7 days notice. Callable 09/04/02 with 5 days notice. Callable 12/18/02 with 7 days notice. Callable 12/26/02 with 5 days notice. KEY: STP - State Treasurers Pool MTCN - Medium Term Corporate Note FFCB - Federal Farm Credit Bank FHLB - Federal Home Loan Bank FHLMC - Federal Home Loan Mortgage Corporation CP- Commercial Paper FNMA - Federal National Mortgage Association *CR = Current rating as of July 10, 2002 COSTA MESA SANITARY DISTRICT CASH BALANCE BY FUND AS OF JUNE 30, 2002 SEWER CONSTRUCTION FUND 592 $ 199,079.48 FACILITIES REVOLVING FUND 593 2,056,965.59 CMSD SOLID WASTE FUND 594 2,056,402.49 CMSD LIQUID WASTE FUND 595 6,286,287.49 SELF - INSURANCE FUND 602 24.48 DEPOSITS FUND 701 53.14 $ 10,598,812.67 I&J �J • COSTA MESA SANITARY DISTRICT SUMMARY OF POLICY LIMITATIONS AS OF JUNE 30, 2002 DESCRIPTION U.S. Treasury Bills U.S. Treasury Notes Federal Agency Issues: FICB FFCB FLB FHLB FNMA FHLMC Other * Banker's Acceptances Certificates of Deposit Negotiable Certificates of Deposits Commercial Paper Medium Term Corporate Notes Repurchase Agreements Reverse Repurchase Agreements LAIF (Local Agency Investment Fund) Current Balance Orange County Treasurer's Pool Money Market Mutual Funds (Sweep Account) Asset - Backed and Mortgage- Backed Securities TOTAL CURRENT 25.00% PERCENTAGE 25.00% BASED ON MARKET MAXIMUM VALUE AS OF 06/30/02 PERCENTAGE 0.00% UNL 0.00% UNL 0.00% 25.00% 23.32% 25.00% 0.00% 25.00% 23.28% 25.00% 0.00% 25.00% 9.31% 25.00% 0.00% 25.00% 0.00% 40.00% 0.00% UNL 0.00% 30.00% 0.00% 15% or 30% (1) 6.34% 30.00% 0.00% UNL 0.00% 10% of base 37.76% $ 30,000,000.00 $ 4,055,312.85 0.00% 35.00% 0.00% 10% per fund (2) 0.00% 20.00% 100.00% % Rounds 5/4 % of Portfolio Maturing within one year 37.76% no less than 25% % of Portfolio Maturing or Callable within one year 93.66% (1) Current dollar weighted average maturity as of 06/30/02 is 0 days. (2) Also limited to 20 % in total. *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE roil INSTITUTION LAIF Bank of New York Morgan Keegan Morgan Keegan Morgan Stanley Morgan Stanley Morgan Keegan Wells Fargo Bank Morgan Keegan Salomon Smith Barney % Rounds 5/4 COSTA MESA SANITARY DISTRICT OUTSTANDING INVESTMENTS BY INSTRUMENT TYPE AS OF JUNE 30, 2002 TYPE OF PURCHASE MATURITY INTEREST MARKET INVESTMENT DATE DATE RATE COST VALUE POOL N/A CONTINUOUS 2.687% $ 4,055,312.85 4,055,312.85 SWEEP N/A CONTINUOUS 1.370% - - MTCN (Texas Instruments Inc) 05/15/01 02/01/06 6.125% 681,095.25 703,950.75 681,095.25 703,950.75 FHLB 10/18/01 10 /18 /06 5.000% 500,000.00 500,781.25 FHLB 06/04/02 06/04/07 5.420% 1,000,000.00 1,005,312.50 FHLB 06/26/02 06/26/07 5.125% 1,000,000.00 1,011,562.50 2,500,000.00 2,517,656.25 FHLMC 10 /10 /01 10/10/06 5.000% 1,000,000.00 1,000,781.25 1,000,000.00 1,000,781.25 FFCB 09/28/01 09/28/06 5.500% 500,000.00 504,375.00 FFCB 05/16/02 03/05/07 5.550% 1,004,230.00 1,006,250.00 FFCB 06/18/02 06/18/07 5.125% 1,000,000.00 1,012,843.43 2,504,230.00 2,523,468.43 $ 10,740,638.10 10,801,169.53 % OF PORTFOLIO SPECIAL CHARACTERISTICS OF INVESTMENTS 37.76% Local Agency Investment Fund - State Treasurer's Pool 0.00% Stagecoach Funds Inc. - Treasury Money Market Mutual Fund Bullet; S &P/ Moodvs rated as A/ A2 *(CR - No change) 6.34% 23.28% 9.31% Callable 01/18/02 with 5 days notice. Callable 09/04/02 with 5 days notice. Callable 12/26/02 with 5 days notice. Callable 01 /10 /01 with 5 days notice. Callable 03/28/02 with 7 days notice. Callable 09/05/02 with 7 days notice. Callable 12/18/02 with 7 days notice. 23.32% 100.00% *CR = Current rating as of July 10, 2002 V p INSTITUTION Local Agency Investment Fund Bank of New York Morgan Keegan Wells Fargo Bank Morgan Keegan Morgan Keegan Morgan Keegan Morgan Stanley Salomon Smith Barney Morgan Stanley • COSTA MESA SANITARY DISTRICT OUTSTANDING INVESTMENTS AS OF JUNE 30, 2002 TYPE OF PURCHASE MATURITY/ DAYS TO COUPON % YIELD TO INVESTMENT DATE CALL DATE MATURITY RATE FFCB MATURITY 03/05/07 COST Pool % 5.447 % 1 2.687 % 2.687 % $ 4,055,312.85 Sweep FHLB 06/04/02 1 1.370 % 1.370 % - MTCN (Texas Instruments Inc.) 05/15/01 02/01/06 1,312 6.125 % 5.900 % 681,095.25 FFCB 09/28/01 09/28/06 1,551 5.500 % 5.500 % 500,000.00 03/28/02 06/26/02 06/26/07 1,822 5.125 % 5.125 % FHLMC 10/10/01 10/10/06 1,563 5.000 % 5.000 % 1,000,000.00 01/10/02 FHLB 10/18/01 10/18/06 1,571 5.000 % 5.000 % 01/18/02 FFCB 05/16/02 03/05/07 1,709 5.550 % 5.447 % 09/05/02 FHLB 06/04/02 06/04/07 1,800 5.420 % 5.420% % 09/04/02 FFCB 06/18/02 06/18/07 1,814 5.125 % 5.125 % 12/18/02 FHLB 06/26/02 06/26/07 1,822 5.125 % 5.125 % 12/26/02 Total outstanding investments WEIGHTED AVERAGE INTEREST RATE OF PORTFOLIO WEIGHTED AVERAGE YIELD TO MATURITY WEIGHTED AVERAGE DAYS TO MATURITY .. 4.34 % 3.81 % 1040 DAYS 500,000.00 1,004,230.00 1,000,000.00 1,000,000.00 1,000,000.00 $ 10,740,638.10 • PURCHASE MATURITY INSTITUTION/ DATE DATE BROKER/ DEALER N/A CONTINUOUS LAIF N/A CONTINUOUS Bank of New York 05/15/01 02/01/06 Morgan Keegan 09/28/01 09/28/06 Wells Fargo Bank 10/10/01 10/10/06 Morgan Keegan 10 /18 /01 10 /18 /06 Morgan Keegan 05/16/02 03/05/07 Morgan Keegan 06/04/02 06/04/07 Morgan Stanley 06/18/02 06/18/07 Salomon Smith Barney 06/26/02 06/26/07 Morgan Stanley Total investments outstanding • COSTA MESA SANITARY DISTRICT SCHEDULE OF INVESTMENTS OUTSTANDING FOR ALL MATURITIES WITH MARKET VALUES AS OF JUNE 30, 2002 TYPE OF COST INVESTMENT PAR POOL $ 4,055,312.85 SWEEP - MTCN (Texas Instruments Inc.) 675,000.00 FFCB 500,000.00 FHLMC 1,000,000.00 FHLB 500,000.00 FFCB 1,000,000.00 FHLB 1,000,000.00 FFCB 1,000,000.00 FHLB 1,000,000.00 $ 10,730,312.85 • COUPON RATE COST MARKET VALUE ACCRUED INTEREST NET GAIN /LOSS IFSOLD 2.687% 4,055,312.85 4,055,312.85 1.370% - - - - 6.125% 681,095.25 703,950.75 17,226.56 22,855.50 5.500% 500,000.00 504,375.00 7,104.17 4,375.00 5.000% 1,000,000.00 1,000,781.25 11,250.00 781.25 5.000% 500,000.00 500,781.25 5,069.44 781.25 5.550% 1,004,230.00 1,006,250.00 17,883.33 2,020.00 5.420% 1,000,000.00 1,005,312.50 4,065.00 5,312.50 5.125% 1,000,000.00 1,012,843.43 1,850.69 12,843.43 5.125% 1,000,000.00 1,011,562.50 711.80 11,562.50 10,740,638.10 10,801,169.53 65,160.99 60,531.43 COSTA MESA SANITARY DISTRICT CALL SCHEDULE AS OF JUNE 30, 2002 0 PURCHASE MATURITY INTEREST CALL TYPE OF INVESTMENT DATE DATE RATE DATE COST PAR FHLMC 10/10/01 10/10/06 5.000% 01/10/02 $ 1,000,000.00 1,000,000.00 FHLB 10/18/01 10/18/06 5.000% 01/18/02 500,000.00 500,000.00 FFCB 09/28/01 09/28/06 5.500% 03/28/02 500,000.00 500,000.00 FFCB 05/16/02 03/05/07 5.550% 09/05/02 1,004,230.00 1,000,000.00 FHLB 06/04/02 06/04/07 5.420% 09/04/02 1,000,000.00 1,000,000.00 FFCB 06/18/02 06/18/07 5.125% 12/18/02 1,000,000.00 1,000,000.00 FHLB 06/26/02 06/26/07 5.125% 12/26/02 1,000,000.00 1,000,000.00 $ 6,004,230.00 6,000,000.00 0 COSTA MESA SANITARY DISTRICT DAILY CASH FLOWS AS OF JUNE 30, 2002 14,000,000 12,000,000 10,000,000 w 8,000,000 U z d a d 6,000,000 4,000,000 2,000,000 OZ N o o`o o o o' &otiotiotio' o' otio' otiotiotio' oti&otiotioti ��S �S �N �4 �� ° �5 �� t 4,4� Q,QS 4,4 a� �� s O 1 �, O`l, Iry �`% O '1+ O 1. "� 10 ry0 ryF ti� r�0 "�O O -, ti O ti 'L �O ry r,0 po ti� ti� zq , ryj' O 1 ti DATE 0 0 9 COSTA MESA SANITARY DISTRICT CASH FLOWS AS OF JUNE 309 2002 2,500,000 2,000,000 1,500,000 m 1,000,000 500,000 0 ti cd w � ¢ `� ti Date �' REVENUE EXPENSE 0 0 9 7.00 6.50 6.00 5.50 5.00 4.50 W U W 4.00 a 3.50 3.00 2.50 2.00 1.50 o� o� o'� o� o� o� o"� o� o� p� o� o� o� oti oti oti oti oti oti oti oti oti oti oti oti oti DATE 2001/2002 MARKET RATES AS OF JUNE 30, 2002 - 3 -MONTH LIBOR - 6 -MONTH LIBOR -- 90 DAY T -BILL 26 WEEK T- BILL -1 YR T -BILL 2 YR T -NOTE 3 YR T -NOTE 5 YR T -NOTE 10 YR T -NOTE COSTA MESA SANITARY DISTRICT - ASSET ALLOCATION AS OF JUNE 309 2002 FEDERAL HOME FEDERAL HOME LOAN MORTGAGE MEDIUM TERM LOAN BANK CORPORATION CORPORATE 23% 9% NOTES 6% FEDERAL FARM CREDIT BANK LOCAL AGENCY 23% INVESTMENT FUND 39% Rounded 5/4 F7Local Agency Investment Fund F7Federal Home Loan Bank AFederal Farm Credit Bank Federal Home Loan Mortgage Corporation .Medium Term Corporate Notes Total In Thousands $ 4,056 2,500 2,504 1,000 681 $ 10,741 0 COSTA MESA SANITARY DISTRICT - PORTFOLIO INTEREST RATE INFORMATION AS OF JUNE 30, 2002 7.00 6.75 6.50 6.25 J 6.00 5.75 � — 5.50 — 5.25 5.00 — z 4.75 U 4.50 0. 4.25 4.00 - 3.75 3.50 - -ANN 3.25 3.00 2.75 2.50 2.25 2.00 co a°' x°'050° �,° �o° o° o° o0 0° 6�oo Oo 00 0° Oti otioti ,lDS� �¢O b� PQS D� ,J� �J� �J� �¢Q �G��O� �Fr�' ,D� �¢� _ t�aS e,QS a� _141* DATE *OCIP rate for June not available at time of report. CMSD AVERAGE — LAIF T -BILL (I YEAR) T -BILL (3 YEAR) OCIP 0 0 0 COSTA MESA SANITARY DISTRICT - MATURITIES DISTRIBUTION AS OF JUNE 309 2002 70%- In Thousands 60% 55.90% 1 - 180 Days $ 4,056 181 - 365 Days - 50%- 1 - 2 Years - - - - 37.6% - - - - - - - - - - - - - - - � - - - - - - - 40%- - 2 - 3 Years - 30%- - 3 - 4 Years 681 4 - 5 Years 6,004 20%- - Days 1 -2 Years 2 -3 Years 3 -4 Years 4 -5 Years TOTAL $ 10,741 10%-.' 6.34% 0.00% 0.00% 0.00% 0% 1 - 180 Days 181 -365 % Rounded 5/4 o, Days 1 -2 Years 2 -3 Years 3 -4 Years 4 -5 Years