BOARD MEETING AGENDA Tuesday, April 19, 2016 3:00 p.m. · Tuesday, April 19, 2016 . 3:00 p.m. Oro Loma Sanitary District Boardroom . 2655 Grant Avenue . San Lorenzo, CA 94580 . In

BOARD MEETING AGENDA

Tuesday, April 19, 2016 3:00 p.m. Oro Loma Sanitary District Boardroom 2655 Grant Avenue San Lorenzo, CA 94580

In compliance with the Americans with Disabilities Act of 1990, if you need special assistance to participate in a District meeting, or you need a copy of the agenda, or the agenda packet, in an appropriate alternative format, please contact the Board Clerk’s office at 510-276-4700. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the District staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.

1. Call to Order 2. Roll Call: Directors Becker, Dias, Duncan, Walters, Young 3. General Public

(Members of the public wishing to comment on any item not on the agenda, but within the Board’s jurisdiction, should notify the Board at this time. Those wishing to comment on any item on the agenda should do so at the time the item is considered. Comments may be limited to three (3) minutes. Time limitations shall be at the discretion of the President.)

CONSENT CALENDAR

Motion 4. Approval of Minutes of April 5, 2016 (The Board will be asked to approve the minutes.)

Motion 5. Approval of Financial Statements, March 2016 (The Board will be asked to approve the financial statements.)

Motion 6. Approval of Monthly Compliance & Activity Reports, March 2016 (The Board will be asked to approve the monthly reports from the Engineering, Collections,

Operations, and Maintenance Departments.) EMPLOYEE INTRODUCTION

Information 7. Introduction of New Employee: Andrea Bautista, Construction Inspector

(The new employee will be introduced to the Board.) COMMITTEE/ASSOCIATION MEETINGS Information 8. Report from the California Association of Sanitation Agencies (CASA) 2016 Public Policy Forum (Directors Becker and Young and General Manager Warner will report on the April 6, 2016

CASA Public Policy Forum, held in Sacramento.)

Information 9. Report from the Solid Waste Committee (Director Young will report on the April 11, 2016 meeting.)

Information 10. Report from the CASA Executive Board (Director Becker will report on the April 11, 2016 meeting.)

Information 11. Report from the Construction Committee (Director Becker will report on the April 13, 2016 meeting.)

Information 12. Report from the Finance & Insurance Committee (Director Dias will report on the April 15, 2016 meeting.)

Motion 13. Approval of Board Committee Minutes for Entry to District Record (The Board will be asked to approve the Board Committee minutes for entry to the District record by reference.)

NEW BUSINESS

Resolution 14. Resolution Fixing Time and Place for Hearing on Proposed Sewer Service Charge Increases for Five Fiscal Years, FY 2016/17 – FY 2020/21

(The Board will be asked to adopt a resolution setting Tuesday, May 17, 2016, at 3:00 p.m., at the District’s offices, for a public hearing a on proposed increases to the sewer service charges for the next five years.)

Resolution 15. Resolution to Opt Into the Alameda County Waste Management Authority (Stopwaste) Mandatory Recycling Ordinance Phase I and Phase II for the L1 (Unincorporated) Area of the District

(The Board will be asked to adopt a resolution opting into the Stopwaste Mandatory Recycling Ordinance Phase I and Phase II for the L1 area of the District.)

Motion 16. Approval of Plans and Specifications and Contract Documents and Calling for Sealed Bids: Clausen Lift Station Rehabilitation Project 2016 (The Board will be asked to approve the plans and specifications and contract documents and call for sealed bids.)

17. Staff/Directors Comments (Board and/or staff members may comment on items of interest.)

18. Adjournment

AGENDA ITEM NO: 4 AGENDA DATE: 4/19/16

MINUTES OF THE REGULAR MEETING OF THE SANITARY BOARD OF

ORO LOMA SANITARY DISTRICT

April 5, 2016

The regular meeting of the Sanitary Board of Oro Loma Sanitary District was called to order by President Timothy Becker at 3:00 p.m. on Tuesday, April 5, 2016, at the District offices at 2655 Grant Avenue, San Lorenzo. President Becker noted that Directors Roland Dias, Rita Duncan, and Shelia Young were present. Also in attendance were Jason Warner, General Manager; William Halsted, District Engineer; Arlene Wong, Finance Manager; Andreea Simion, Administrative Services Manager; Sally Green, District Secretary; Jen Faught, District Legal Counsel and Natasha Neves, Solid Waste Program Consultant. General public included Sasha Stackhouse, Waste Management Public Sector Services Representative. Director Young moved approval of the single Consent Calendar item, based on staff recommendation: 4) Approval of Minutes of March 15 and March 19, 2016. The motion was seconded by Director Dias and carried unanimously, 4-0. As Operations Committee Chair Walters was absent, Director Duncan reported on the March 16, 2016 Operations Committee meeting, beginning with the Environmental Laboratory Accreditation Program (ELAP). Director Duncan said that Plant Chemist Sara Burke provided an interesting overview of the purpose and process to achieve laboratory accreditation, which is a requirement for Oro Loma to perform water quality compliance testing for its NPDES permit. Standing Topics included February 2016 data for Natural Gas Usage, Overview of Power Production and Plant Demand, Monthly Power & Chemical Costs ($39,266) and a review of Monthly Activity Reports for the Collections, Maintenance and Operations Departments. For District Operations Overview, 1) Supervisor of Field Maintenance Lenny Rather discussed the Collections Department’s monthly production targets, noting that they vary throughout the year depending upon the season and which frequency list is being used; in February the department was 23.5% above its goal. 2) Supervisor of Plant Maintenance Scott von der Lieth reported that the Maintenance Department completed the third month of this fiscal year with less than 100 open work orders. 3) Supervisor of Plant Operations Manuel Talledo-Garcia reported that Operations staff is working in the drying beds, completing the heavy equipment operator training, and working with the grease contractor on delivery schedules. Director Duncan mentioned that Scott von der Lieth took her on a tour of several lift stations. She said that the tour was a great learning experience, and she now has a better understanding of the teamwork necessary for the successful operation of the stations. Director Dias reported on the March 17, 2016 meeting of the East Bay Dischargers Authority. Most of the meeting topics were related to the NPDES Permit, including charts showing that Oro Loma, and all the member agencies, are well below the compliance limits for TSS and CBOD; EBDA’s request to extend the abeyance period for two additional years on a petition filed with the State Water Board for review of Waste Discharge Requirements in the Permit; a letter from

Oro Loma Sanitary District Minutes, Meeting of April 5, 2016 Page 2 of 3

the San Francisco Bay Regional Water Quality Control Board detailing the Permit reissuance process; and review of a checklist of annual regulatory activities completed during calendar year 2015. Other topics included resolutions approved for work at the Alvarado Effluent Pump Station and the San Leandro Effluent Pump Station, and graphic illustrations of future allocation of EBDA capital costs. Director Duncan reported on the March 18, 2016 meeting of the Personnel/Safety/Public Information Committee. The first topic was the CSRMA Workers’ Compensation Excellence Award, which focuses on practices to reduce or eliminate low-back injuries. The District submitted an application for the award in March 2016, and the results should be available this summer. Other topics included the Lift Stations Tour, conducted annually for the benefit of new employees and other District staff interested to learn more about lift stations; and the Contractor Safety Video, developed by the District, which contains a comprehensive overview of safety hazards that could be encountered by contractors working at Oro Loma. Mandatory viewing of the video is required for all contractors and their staff and subcontractors before starting work. Director Duncan said that the Committee watched and was pleased with the informative video, and complimented staff on the District’s award-winning safety program. Director Young reported on the March 21, 2016 meeting of the Solid Waste Committee, beginning with a report on two route audits conducted by District staff on February 29 and March 16, 2016. The audits documented service issues, including broken or missing lids, open lids, trash overages, trash on the ground, recycling contamination, and the lack of service tickets left by WM drivers. Waste Management is addressing the issues. Other topics included an Update on Collection of Delinquent Garbage Charges (a second letter was sent to approximately 2,800 customers, and the current standing balance of delinquent garbage charges is approximately $646,000); Follow-up on Service Tags (WM is working on a new draft with more effective language); and Public Outreach Update (Solid Waste Consultant Natasha Neves worked with WM Recycling Coordinator Michelle Taylor on a waste assessment for an 840-unit multi-family complex, and Natasha has commitment from the San Lorenzo Unified School District that food scraps collection programs will be implemented in all their kitchens by the end of the school year); and Solid Waste Program Update (Director of Community and Public Relations David Tucker is leaving Waste Management, and WM staff Kayla Rodriguez, Sasha Stackhouse, and Michelle Taylor are working together while WM is in transition). For Director Comments, Director Young said that as the District’s representative to Stopwaste, she is suggesting that this may be a good time to revisit and reevaluate the District’s position on the mandatory recycling ordinance, from which Oro Loma opted out a few years ago. Staff will review the issue and present a recommendation at a future Committee meeting. Director Young then reported on the March 23, 2016 meeting of the Alameda County Waste Management Authority. The highlight of the meeting was a discussion of the Reusable Bag Ordinance, with a draft proposed amendment to include all retail stores and restaurants. Director Becker reported on the March 24, 2016 annual dinner meeting of the Alameda County Special Districts Association, held at the Marriott Pleasanton Hotel. The meeting was attended by Directors Becker, Young, and Duncan, General Manager Warner and Administrative Services Manager Simion. The keynote address was given by Congressman Eric Swalwell, representative of the 15th District. All the attendees agreed that his topics, which ranged from interacting with other “millennials” in Congress to addressing student loan debt, were both interesting and entertaining. Director Becker said that he feels the CSDA meetings are valuable because they provide an opportunity to interact with other special districts and discuss specific and

Oro Loma Sanitary District Minutes, Meeting of April 5, 2016 Page 3 of 3

mutual challenges faced. Director Dias moved approval of the Board Committee minutes for entry to the District record by reference. The motion was seconded by Director Young and carried unanimously, 4-0. Director Dias MOVED APPROVAL OF PLANS AND SPECIFICATIONS AND CONTRACT DOCUMENTS AND CALLING FOR SEALED BIDS: POINT REPAIRS FY 2015-16 PHASE II PROJECT. The motion was seconded by Director Young and carried unanimously, 4-0. The project will provide for the completion of 86 point repairs on vitrified clay pipe (VCP), PVC pipe, and HDPE pipe, as well as repairs on manholes. Director Young asked how many contractors typically bid our projects, and do the same ones usually get the work. General Manager Warner said that there are 4-5 usual bidders, and the contract goes to the lowest qualified bidder. Director Young MOVED APPROVAL TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CALIFORNIA TRENCHLESS INC., IN THE AMOUNT OF $281,300: SEWER LINE REPLACEMENT PROJECT VIA DESCANSO. The motion was seconded by Director Dias and carried unanimously, 4-0. Director Dias MOVED APPROVAL OF PLANS AND SPECIFICATIONS FOR TRACT 8284, THE BUNGALOWS, BOCKMAN ROAD, NORTH. The motion was seconded by Director Duncan and carried unanimously, 4-0. The private sanitary sewer system for this tract includes construction and installation of approximately 1,434 lineal feet of 8” PVC sanitary sewer pipe, 12 manholes and 53 sewer laterals, at an estimated construction cost of $100,000. General Manager Warner opened Staff/Director comments by advising the Board that the Proposition 218 notices were mailed; so far, the District has received 24 email protests, and both pro and con telephone responses. Staff responds to all the protest emails by thanking the senders and advising that the protests will be forwarded to the Board. The General Manager praised Administrative Services Manager Andreea Simion for her work on the CSRMA Workers’ Compensation Excellence Award application. President Becker mentioned that Director Young, General Manager Warner, and he were leaving directly after the meeting to the CASA Public Policy Forum in Sacramento. There being no further business to come before the Board, President Becker adjourned the meeting at 4:25 p.m. Timothy Becker President (Recording Secretary: Sally Green)

ACWMA Mandatory Recycling Ordinance Review

Andreea SimionApril 11, 2016

Background

In 2011, AB341 was signed into law, requiring all businesses generating 4+ cubic yards of trash per week, and all multi-family dwellings with 5+ units to implement recycling programs.

In 2012, ACWMA adopted a Mandatory Recycling Ordinance (MRO), imposing a more stringent version of the state mandate.

MRO – Phase I Background

Phase I of the MRO required that all businesses generating 4+ cubic yards of trash per week, and all multi-family dwellings with 5+ units implement recycling programs.

Oro Loma opted out of Phase I for its L1 (Unincorporated) Area, and participates in the MRO Phase I in its L2 and L3 areas.

As an alternative to the MRO Phase I, ACWMA mandated that the District provide one hour of technical assistance per year, per business, in order to retain its Measure D disbursements; the District exceeded the requirements, and the Measure D disbursements continued.

MRO – Phase II Background

MRO Phase II went into effect on July 1, 2014, and required all businesses and multi-family dwellings to implement recycling and organics programs.

Oro Loma opted out of Phase II for its L1 (Unincorporated) area, and participates in the MRO Phase II in its L2 and L3 areas;

As an alternative to the MRO Phase II, ACWMA mandated that the District provide three hours of technical assistance per year, per heavy organics generating business, in order to retain its Measure D disbursements; the District exceeded the requirements, and the Measure D disbursements continued.

MRO Update July 1, 2016 – L2 and L3

The L2 and L3 areas of the District have been operating under compliance schedule waivers or alternative schedules approved by Stopwaste for each area;

Effective July 1, 2016, all businesses in L2 and L3 must have recycling and organics programs in place and become subject to inspections and enforcement by Stopwaste.

Effective July 1, 2016, all multi-family dwellings with 5+ units in L2 and L3 must have recycling and organics programs in place and become subject to inspections and enforcement by Stopwaste.

MRO Update L1 (Unincorporated) Area

Opted out of the MRO Phase I in 2012 and out of Phase II in 2013;

Board directed staff to revisit the issue 2-3 years after 2013.


Opting back into the MRO benefits:

Continuation of Measure D disbursements;

L1 commercial and multi-family customers contacted multiple times to offer assistance; some could benefit from Stopwaste audits and enforcement action;

Same level of reporting required;

Less bureaucracy in tracking outreach hours;

Same rules across all District areas.


Opting back into the MRO drawbacks:

Increased regulatory costs for local businesses – Stopwaste notices of violation and fines for non- compliance;

Green waste commercial service is not included in the franchise agreement beyond one 96-gal cart, so open market rates apply

L1 (Unincorporated) Area Statistics

Commercial Customers: 458

Recycling participation: 222 (48.5%)

Green waste participation: 82 (17.9%) – could be more (not franchised beyond one 96-gal)

Multi-Family Customers with 5+ units: 303 properties

Recycling participation: 299 (98.7%)

Green waste participation: 179 (59.1%)

Recommendation

Based on the information presented, staff recommends that the Board adopt a Resolution opting into the Mandatory Recycling Ordinance for the L1 (Unincorporated) Area of the District, effective July 1, 2016.

Questions?

Oro Loma Sanitary District MEMORANDUM TO: Board of Directors FROM: Finance & Insurance Committee

Directors Dias and Becker

DATE: April 15, 2016 SUBJECT: MINUTES, MEETING OF APRIL 15, 2016 The Finance and Insurance Committee, consisting of Directors Dias and Becker, General Manager Warner, and Finance Manager Wong met on Friday, April 15, 2016 at 2:00 p.m. There were no members of the public present. Items discussed included the following:

MONTHLY FINANCIAL REPORTS, MARCH 31, 2016 The Committee reviewed the March 2016 financial reports and check register. All records were found to be in accounting compliance, and expenses were on reasonable target for the 9-month interval. The cash and investment position was $21.1 million, which included $331,483 for day-to-day management of OPEB obligations. The cash position was $880,490 higher than in June 2015, and $138,655 higher than in March 2015.

The following checks were reviewed and found to be in good order. EFT#844 Natasha Neves $9,872.13 #57151 USGI Chemical Feed, Inc. $1,400.04 #57157 3T Equipment Company, Inc. $3,981.05 #57159 Aerzen USA Corporation $7,125.00 #57183 Herguth Laboratories, Inc. $36.40 #57197 PLS Surveys, Inc. $19,600.00 #57238 Hoffmeyer Company, Inc. $652.62 #57244 Ortiz Construction, Inc. $49,907.00 #57255 Seco Control Systems, Inc. $4,196.61 #57256 Shape Products $178.28 #57260 Yorke Engineering, LLC $998.00 The Committee recommended Board approval of the financial reports.

ECONOMIC ACTIVITY & MARKET RATES UPDATE The Committee reviewed a commentary on current economic conditions. The District's overall investment yield in March 2016 was 0.792%. LAIF's interest rate was 0.506%. A $250,000 CD matured. Proceeds have been transferred to LAIF.

The Committee accepted the information.

Finance and Insurance Minutes April 15, 2016 Page 2 of 2

QUARTERLY UPDATE ON CASH FLOW FROM INVESTMENTS The Committee reviewed a graph on scheduled cash inflows from the District's current investment portfolio of $12.1 million (at face value). The average yield is 1.036% with an average duration of 1.27 years.

The Committee accepted the information.

ATTORNEY’S INVOICE The Committee reviewed the March 2016 attorney’s invoice, in the amount of $2,241.00. The Committee accepted the invoice.

FIVE-YEAR SEWER SERVICE RATE STUDY MEMO The Committee reviewed a rate study memo that will be available to the public on request. The memo provides information on projected cash flow, pension liabilities, expense management and use of reserves, along with schedules of planned Renewal & Replacement and Capital Improvement Program projects, and assumptions used in the study. The Committee accepted the memo. This memo will be in the attachments for the April 19, 2016 Board agenda item on setting a date for the public hearing for sewer service charge rate increase.

CONTINUATION OF INVESTMENT POLICY REVIEW The Committee concluded the discussion from its last meeting on the Investment Policy. The final revision excludes the proposed investment category with no investment limit of securities backed by the full faith and credit of the United States Government for principal and interest, in particular, negotiable Certificates of Deposits that are FDIC-insured. Such investments will remain subject to the 30% investment limit. The Committee approved the revised Investment Policy. The Policy will be brought to the full Board for approval on May 3, 2016.

INSURANCE The Committee was informed of a CSRMA Workers' Compensation dividend of $31,525, representing favorable results from program years 1986-87 to 2009-10. The Committee also reviewed a letter from CSRMA notifying the District that its FY 2016-17 Ex-Mod factor will increase from 0.61 to 0.73. The Ex-Mod increase set the 2016 maximum for the Employee's Incentive Award for Zero Lost Time Due to Work-Related Injuries at $548, calculated as follows: $200 personal no lost time award + $400 x (1.60-0.73) District-wide award. The Committee accepted the information.

ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 3:10 p.m.

F:\FINANCE\F&I\Minutes\2016\fi 04-15-16 min.doc

Resolution No. ____

A RESOLUTION FIXING TIME AND PLACE FOR HEARING ON PROPOSED SEWER SERVICE CHARGE INCREASES FOR FIVE FISCAL YEARS,

FY 2016/17 – FY 2020/21

WHEREAS, the Sanitary Board of Oro Loma Sanitary District (the “Board”) adopted the current sewer service charges, as established in Ordinance No. 37-27, on June 7, 2011; and, WHEREAS, the Board held a special work session on December 14, 2015 to evaluate the current sewer service charges; and, WHEREAS, the Board determined that, based on a fiscal analysis and projection of costs for the next five years, and using inflationary projections of 3% per year on the cost to collect, transport and treat wastewater within the District, the proposed increase would enable the District to accelerate the pace of repairing and replacing its 270 miles of underground pipes, many of which are over 70 years old; and, WHEREAS, the Board will consider an increase in sewer service charges of 7.5% per year (rounded to the nearest dollar) for the next five fiscal years, with the first increase going into effect July 1, 2016; and, WHEREAS, the proposed sewer service charges for all classes of customers are attached hereto as Attachment A, and made part of this resolution; and, WHEREAS, pursuant to the provisions of Proposition 218, the District is required to provide all property owners within the District with notice of the proposed sewer service charge changes; said notice was mailed on March 28, 2016, and a copy is attached hereto and made a part of this resolution, as Attachment B; and, WHEREAS, the Board desires to set a public hearing to allow for written or verbal public protests to be received prior or during the Board’s consideration of the increase in sewer service charges; and, WHEREAS, protests against the sewer service charge increase must be submitted in writing (by mail or email), must identify the owner(s) and the property or properties for which the protest is entered, and must be received from 50% + 1 of the properties located within the boundaries of Oro Loma Sanitary District to defeat the proposed increase. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Sanitary Board of Oro Loma Sanitary District that Tuesday, the 17th day of May, 2016, at the hour of 3:00 p.m., being a regular meeting of this Board, at the meeting place of this Board, 2655 Grant Avenue, San Lorenzo, California, is hereby fixed as the time and place for a hearing on increases to sewer service charges, and that the Secretary shall cause to be posted a notice of said hearing, at which verbal or written protests will be considered.

All actions by the Secretary in causing the Notice to be published are hereby ratified and approved.

I certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted by the Sanitary Board of Oro Loma Sanitary District, Alameda County, California, at a meeting thereof held on the 19th day of April 2016, by the following vote of the members thereof: AYES, Members: NOES, Members: ABSENT, Members: _________________________________ President Countersigned: ______________________________________ Secretary

Attachment A to Resolution No. ________

SEWER SERVICE CHARGES FOR ALL CLASSES OF CUSTOMERS FOR FIVE FISCAL YEARS,

FY 2016/17 – FY 2020/21

GENERAL All sewer service charges shall be developed using the unit costs listed in Table A-1, as regulated by Ordinance No. 37. Any sewer service charges not specifically identified in this Resolution will be prepared using the unit costs of Table A-1 and the appropriate parameter from the Table.

TABLE A-1

Sewer Service Charge Unit Costs

Effective

07/01/2016

Effective

07/01/2017

Effective

07/01/2018

Effective

07/01/2019

Effective

07/01/2020

Flow, per 100 cubic feet (ccf) water 2.144 2.305 2.478 2.664 2.864

Biochemical Oxygen Demand (BOD), per pound

0.417 0.448 0.482 0.518 0.557

Suspended Solids (SS), per pound 0.477 0.513 0.551 0.592 0.636

Minimum Charge: The District requires that all customers connected to the District’s sewer system pay a minimum annual sewer service charge of no less than the lowest annual residential rate currently in effect. Annual minimum sewer service charge shall be $181.00 (2016), $194.00 (2017), $209.00 (2018), $224.00 (2019), $241.00 (2020).

RESIDENTIAL CUSTOMERS Annual sewer service charges for this class of customer shall be charged based on the customer class and multiplied by the number of dwelling units as follows:

Customer Class

Effective 07/01/2016

Effective

07/01/2017

Effective

07/01/2018

Effective

07/01/2019

Effective

07/01/2020

Single Family Dwelling

$221

$238

$256

$275

$296

Multiple Family Dwelling

$221

$238

$256

$275

$296

Mobile Homes/House Trailers

$181

$194

$209

$224

$241

COMMERCIAL/LIGHT INDUSTRIAL/INSTITUTIONAL/INTERMEDIATE/MINOR USERS Sewer service charges for this class of customer is $3.273 (2016), $3.518 (2017), $3.782 (2018), $4.066 (2019), $4.371 (2020) per actual water use, measured in hundred cubic feet (ccf), with a minimum annual charge of $181.00 (2016), $194.00 (2017), $209.00 (2018), $224.00 (2019), $241.00 (2020).

SCHOOL CUSTOMERS Sewer service charges for this class of customer is $2.406 (2016), $2.586 (2017), $2.780 (2018), $2.989 (2019), $3.213 (2020) per actual water use, measured in hundred cubic feet (ccf).

SIGNIFICANT INDUSTRIAL USERS Sewer service charges for this class of customer shall be prepared based upon actual flow and loadings, times the unit costs as follows, with a minimum annual charge to be collected in the amount of $181.00 (2016), $194.00 (2017), $209.00 (2018), $224.00 (2019), $241.00 (2020).

Effective

07/01/2016

Effective

07/01/2017

Effective

07/01/2018

Effective

07/01/2019

Effective

07/01/2020

Flow, per ccf water 2.144 2.305 2.478 2.664 2.864

BOD, per pound 0.417 0.448 0.482 0.518 0.557

SS, per pound 0.477 0.513 0.551 0.592 0.636

PUMPED AREAS Users of the District’s sewerage system serviced by lift stations constructed after January 1, 1995, shall pay an additional annual charge as determined by District to cover renewal and replacement and operation and maintenance costs of the lift station. Charges for residential customers shall be a flat fee regardless of type of unit. Charges for commercial customers shall be based on flow volume.

A. Lift Station 13 (Blackstone Court) provides sewer service to most residents of Blackstone

Court: Effective

07/01/2016 Effective




07/01/2020 Residential $116.00 $116.00 $116.00 $116.00 $116.00 Commercial None None None None None

B. Lift Station 14 (Canyon Drive) provides sewer service to Tract 6833 (Henry Lane) and residents of the Five Canyons Development generally east and west of Five Canyons Parkway, except Tract 6196. The parcels of Tract 6179, which are tributary to this lift station, are charged separately under Lift Station 15.

Effective





07/01/2020 Residential $60.00 $60.00 $60.00 $60.00 $60.00 Commercial None None None None None

C. Lift Station 15 (Canyon Ridge) provides sewer service to the parcels of Tract 6179. In addition, these parcels are tributary to Lift Station 14, therefore, the total surcharge is shown:






Residential $116.00 $116.00 $116.00 $116.00 $116.00 Commercial None None None None None

D. New Lift Stations: Should the District, after the effective date of this Ordinance, desire to approve construction of a new lift station intended to serve one or more new customers, the annual user charge for connection to that station shall be set by the Board of Directors and approved by motion. Such charges specified in the motion will be incorporated into this Ordinance at an appropriate future date.

SPECIAL SITUATIONS Certain District commercial customers have unique situations which require billing computations based on Equivalent Dwelling Units (EDUs). In these cases, District staff determines the appropriate annual charges which are memorialized in a written agreement between the parties and approved by Oro Loma Sanitary District Board action. SCHEDULE OF FEES FOR MONITORING AND WASTEWATER DISCHARGE PERMITS FOR FISCAL YEARS 2016/17 – 2020/21 (Regulated by Ordinance No. 39)

User Classification

Annual Permit Fee *

Annual Monitoring Service Fee **

Significant Industrial User (Categorical)

$741 (2016), $797 (2017), $857 (2018), $921 (2019), $990 (2020)

$ 9,333 (2016), $10,033 (2017), $10,785 (2018), $11,594 (2019), $12,464 (2020)

Significant Industrial User (Non-Categorical)

$741 (2016), $797 (2017), $857 (2018), $921 (2019), $990 (2020)

$12,283 (2016), $13,204 (2017), $14,194 (2018), $15,259 (2019), $16,403 (2020)

Intermediate Users

$741 (2016), $797 (2017), $857 (2018), $921 (2019), $990 (2020)

$3,164 (2016), $3,401 (2017), $3,656 (2018), $3,930 (2019), $4,225 (2020)

Minor User

$741 (2016), $797 (2017), $857 (2018), $921 (2019), $990 (2020)

Fees to be determined

Special Discharge Permit

Volume Discharge Fee

Groundwater

$741 (2016), $797 (2017), $857 (2018), $921 (2019), $990 (2020)

$2.863/ccf (2016), $3.078/ccf (2017), $3.309/ccf (2018), $3.557/ccf (2019), $3.824/ccf (2020)

Swimming Pools

$186 (2016), $200 (2017), $215 (2018), $231 (2019), $248 (2020)

N/A

Other Discharges

$ 87 (2016), $ 94 (2017), $101 (2018), $109 (2019), $117 (2020) (minimum)

Fees to be determined

Resampling/Re-Inspection Fees

A) Grab Sample – Minimum plus actual cost of laboratory analysis + 20%

$139 (2016), $149 (2017), $160 (2018), $172 (2019), $185 (2020)

B) Composite Samples – Minimum plus actual cost of laboratory analysis + 20%

$276 (2016), $297 (2017), $319 (2018), $343 (2019), $369 (2020)

C) Re-Inspection (as part of ERP)

$276 (2016), $297 (2017), $319 (2018), $343 (2019), $369 (2020)

D) Site Visit (at SIU’s request)

$186 (2016), $200 (2017), $215 (2018), $231 (2019), $248 (2020)

Notes: * Includes application review and inspection. ** Includes all costs for sampling events, analysis, program administration and

equipment. INTEREST The District’s policy is not to pay any interest on refunds or claims connected with sewer service charges, developer deposit accounts, or other sums deposited with the District.

Rate Change Explained

Oro Loma Sanitary District proposes to increase its Sewer Service Charges (SSC) to reflect changes in the estimated cost to collect, transport and treat wastewater from all users within the District’s service area. The cost estimate includes inflationary adjustments and a 50% increase in the replacement rate of worn-out sewer pipes, many of which are over 70 years old. The SSC appear on your property tax bill and are currently $206 per year for a single-family residence.

Oro Loma proposes to increase the current Sewer Service Charges effective July 1, 2016 and every July 1 for the following four years by 7.5% per year (rounded to the nearest dollar). For a single-family residence, the SSC would be $296 per year at the end of five years. For details, please see chart on the following page.

SPECIAL NOTICE FROM

ORO LOMA SANITARY DISTRICT TO PROPERTY OWNERS:

PUBLIC HEARING ON PROPOSED INCREASE IN SEWER SERVICE CHARGES

Only District to be Awarded California Collection System of the Year Four Times (2000, 2003, 2010, 2013)

Won Statewide Award for Employee Safety - 2015

Excellence in Financial Reporting – 21 Years in a Row

Transparency Certificate of Excellence – Special District Leadership Foundation

Lowest Sewer Service Charges in Alameda County

Transport of the sewage from your property to the treatment facility.

Treatment of the sewage to protect public health and the environment in the San Francisco Bay.

Repair and/or replacement of worn-out sewer pipes and treatment facilities to provide reliable service and long-term value.

What service is provided for the Sewer Service Charges?

Evidence of our Commitment to the Environment and the Community

Oro Loma Sanitary District2655 Grant AvenueSan Lorenzo, CA 94580

Board of DirectorsTimothy P. Becker, PresidentShelia Young, Vice-PresidentDaniel L. Walters, SecretaryRoland J. Dias, DirectorRita Duncan, Director

District AdministrationJason Warner, General Manager

In 2015, Oro Loma performed a fiscal analysis and projection of costs for the next five years. The necessary increase in SSC was calculated using inflationary projections of 3% per year on the estimated cost to collect, transport and treat wastewater within the District. The proposed increase would also enable the District to accelerate the pace of repairing and replacing its 270 miles of underground pipes, many of which are over 70 years old.

How is the Sewer Service Charge increase calculated?

The District’s Board will consider the proposed increases at the time and place noted on the following page.

IMPORTANT FACT:The District’s current charges are 63% below the average in Alameda County. The charges are expected to remain the lowest in the county at the end of five years.

How do I Protest?

Submit a written protest. Protests against the sewer service charges increase must be submitted in writing (by mail or e-mail) and will be accepted until the end of the public hearing on May 17, 2016. A protest must identify the owner(s) and the property or properties for which the protest is entered. At the close of the public hearing, any written protests will be tallied by the District Secretary. If protests against the proposed increase in Sewer Service Charges are presented by a majority of owners of the parcels affected, the District cannot approve the proposed increase. If a majority protest is not received, each July 1 hereafter, up to and including July 1, 2020, the Sewer Service Charges will automatically increase by 7.5% (rounded to the nearest dollar), as described in this notice.

If you wish to protest the increase, or have questions or comments on the proposed Sewer Service Charges increase, you may contact the District in several ways.

Attend a public hearing: Tuesday, May 17, 2016, at 3:00 PM

Oro Loma Sanitary District Boardroom 2655 Grant Avenue, San Lorenzo, CA 94580

Call us at: (510) 276-4700

Email us at: [email protected]

Write to us at: Oro Loma Sanitary District 2655 Grant Avenue, San Lorenzo, CA 94580 Attn: Sewer Service Charges

Remember that in order to be counted, the protests must be submitted in writing.

Effective Date/ Type of

Residential Property

Single Family

DwellingsApartments

(per unit)

House Trailers/Mobile

Homes

Minimum Annual Charge

July 1, 2016 $221/year $221/year $181/year $181/yearJuly 1, 2017 $238/year $238/year $194/year $194/yearJuly 1, 2018 $256/year $256/year $209/year $209/yearJuly 1, 2019 $275/year $275/year $224/year $224/yearJuly 1, 2020 $296/year $296/year $241/year $241/year

Effective Date/Type of Non-Residential

Property

Commercial/ Industrial

(excludes SIUs*) (per hundred cubic feet

(ccf) water))

Schools (per hundred cubic feet

(ccf) water)

Minimum Annual Charge

July 1, 2016 $3.273 $2.406 $181/yearJuly 1, 2017 $3.519 $2.586 $194/yearJuly 1, 2018 $3.783 $2.780 $209/yearJuly 1, 2019 $4.067 $2.989 $224/yearJuly 1, 2020 $4.371 $3.213 $241/year

Non-residential Sewer Service Charges are calculated based on the amount of water used by the customer.

*SIU = Significant Industrial User

Oro Loma Sanitary District

MEMORANDUM

TO: Board of Directors FROM: Jason Warner, General Manager Arlene Wong, Finance Manager DATE: January 25, 2016 SUBJECT: 5 YEAR SEWER SERVICE RATE STUDY – 2016-2021 Summary The District is currently in the fifth year of a five-year rate schedule, which established a Single Family Residential Sewer Rate in the final year of $206 per year, effective July 1, 2015. The District Board met on December 14, 2015 to discuss various rate scenarios and provide direction on what discretionary expenditures to include in an analysis for future rates. The largest discretionary expenses include planned capital projects, a proposed expansion of the line replacement program by 50%, accelerated payments of up to $5M pension liability, and the extent the District continues to use reserves to fund current expenses. Based upon policy direction from the Board, the Sewer Service Rate study is based upon the planned capital program, a 50% increase ($1M/year) to ongoing line replacement efforts, $2M towards pension liabilities, and a target June 30, 2021 reserve level near the minimum reserve level of $8.9M. The attached memorandum provides details on these issues as well as a cash flow analysis used to recommend a 7.5% annual sewer service rate increase tentatively scheduled to initiate on July 1, 2016 and continuing until July 1, 2021. Length of Programmed Increase

During the rate discussion, the Board weighed the cost of the required Proposition 218 public noticing heavily in its decision to establish a five-year rate schedule. The logic was to spread the fixed cost of a Proposition 218 Notice (approximately $60,000) across the maximum allowable number of years (5), as opposed to re-noticing multiple times. Five-Year Cash Flow Analysis The basis of the rate study is a five-year cash flow analysis. The cash flow analysis includes projected operating, non-operating, capital, and renewal and replacement expenditures. It also includes projected revenues from a variety of existing sources. Staff used the cash flow analysis to determine the ending cash balance scenarios. Assuming a 3% annual inflation factor, a 7.5% rate increase, planned Capital (CIP and R&R) Program, and a 50% increase in the current pace of line replacement, the ending cash balance will be $9.59M (from a beginning balance of $20.27M) A list of the assumptions used in the five-year analysis is included in Appendix A.

The Five-Year Cash Flow Model is shown in Appendix B (with an assumed 7.5% annual rate increase). A summary of the planned Capital Improvements and Renewal & Replacement Projects is included in Appendix C. Staff performed a sensitivity analysis showing the impact of various rate increases on the ending balance at the end of Year 5. At the low end, a 6.7% annual rate increase would be required if no additional pension liability payments are made, and we spend our reserve levels down from $20.27M to the minimum reserve level of $8.9M. At the upper end of the range, an 11.5% annual rate increase would be required if we maintain reserve levels at $16M (the former reserve level) and make $1M per year payments to eliminate the existing pension liability. A table showing the range of alternatives is shown below. Sensitivity Analysis: Impact of Pension Buydown & Sewer Rate Increase on Ending Cash Balance

5% 6% 7% 7.5% 8% 9% 10% 11% 12% 13% 14% 15%

Ending Rate in FY 2020-21 (Y5) ----> $263 $276 $289 $296 $303 $317 $332 $347 $363 $380 $397 $414

With $1m UAL payment (Y0-Y4) =$5m 2,646,238 4,581,367 6,567,289 7,579,642 8,605,109 10,695,951 12,840,954 15,041,275 17,298,088 19,612,585 21,985,975 24,419,485

With $0.75m UAL payment (Y0-Y5)=4.5m 2,784,855 4,719,984 6,705,906 7,718,259 8,743,726 10,834,568 12,979,570 15,179,891 17,436,705 19,751,202 22,124,592 24,558,102


With $0.5m UAL payment (Y0-Y5)=$3m 3,733,472 5,668,601 7,654,522 8,666,875 9,692,343 11,783,185 13,928,187 16,128,508 18,385,322 20,699,819 23,073,209 25,506,719


No UAL payment 5,630,706 7,565,834 9,551,756 10,564,109 11,589,577 13,680,418 15,825,421 18,025,742 20,282,555 22,597,052 24,970,443 27,403,953

Projected Ending Cash Balances at June 30, 2021 (Y5)

Review of Pension Liabilities General Accounting Standards Board (GASB) Statement No. 68 requires agencies to report their individual pension liabilities. Liabilities accrue for both existing staff and former employees. Due to the District’s 105 year history and staff cuts over the past 25 years, the District has a high ratio of retired employees to current staff count (1.05:1). It is also worth noting that the District implemented significant changes in the cost sharing formula and promised benefits in the labor contract initiated in June 2011. These steps were taken prior to complementary actions mandated by the Public Employees Pension Reform Act in 2013. The District's actions reduce the cost of providing pension for those employed since then by 62%. Recent changes at CalPERS allow agencies to pay down their identified liabilities – formally called Unfunded Actuarial Liability (UAL). As of June 30, 2013, the District’s UAL was $11.5M. In March of 2015, the District, in combination with Castro Valley Sanitary District, paid $6.3M toward the liability. Due to the beneficial timing of the payment and favorable investment results, the liability is projected at $4M for June 2016. Unpaid liabilities accrue interest at a rate of 7.5%. The District currently earns approximately 1% on its reserves. Given this differential, it makes sense to increase payments to CalPERS above the default 30-year amortization schedule. When accelerated payments are made, they are

credited and invested when received. Once invested, the amount is subject to market gains or losses and is not guaranteed to earn 7.5% annually. Based upon input from the December 14, 2015 meeting, the cash flow and rate recommendation are based upon making $1M payments in both the current year (Year 0) and Year 1 of the Cash Flow Projection. This alternative is shown in the fifth row of the sensitivity analysis presented on the prior page. Reserves The current Board approved reserve level is $8.9M. This amount was established based on prudent business needs, as opposed to a legal or other debt covenant. The amount is low compared to historic District reserve levels. One risk of the $8.9M level is that if a significant unforeseen expense arises, the District may be required to assume debt to pay for the expenses. Based on our planning to date, upgrades for nutrient treatment represent a $60-80M expense. These upgrades are projected in FY 2027-28 to FY 2032-33. This projection could become an immediate need if an algal bloom or other harmful algal toxin develops in the Bay. Another risk involves the cogeneration facility (cogen). There is currently a $6M planned cogen replacement scheduled for FY 2020-21 and FY 2021-22. $4M of the $6M is planned for FY 2021-22, which is outside the Five-Year Cash Flow Analysis. If the system fails to meet emissions limits prior to FY 2020-21, the $4M replacement will be accelerated into the five-year horizon. In short, there are known and unknown risks that our $8.9M reserve level cannot accommodate. If a multi-million dollar risk materializes, the District may require a debt issuance to address it. The current Board has expressed reluctance to debt finance normal business expenses. Based upon Board direction, we will continue to spend down reserves to near the minimum reserve level. Assuming a 7.5% annual rate increase, the projected ending balance will be $9.59M. Expense Reductions A primary concern in every rate discussion is whether to focus on expense reduction or revenue increases. Since 2008, District operating expenses have been held flat – $17.1M (2008) vs. $16.9M (2015) despite inflation. Energy and chemical operating costs have been reduced by more than 50% over the same period. Staffing levels are at their lowest point in 25 years. Since FY 2006-07, the difference between the District’s rate and the county average has grown from $206 to $357 (see trend on following page). The trend highlights the District’s effectiveness in limiting rate increases compared to the industry. In FY 2008-09, service rates were lowered by $15 ($193 to $178 per year). Given the rate decrease, coupled with the District’s expense controls during a period when average costs in the County have risen significantly above inflation, the Board can be confident that it has provided sufficient focus on cost controls. The Five-Year Cash Flow Model assumes that costs will begin rising with inflation, at a 3.0% annual pace. Despite recent national inflation trends at or below 2%, the 3.0% value was used

because it precisely matches the District’s 10-Year inflation average for the goods, services, and labor expenses it incurs. The District has held expenses flat over the past 8 years primarily by reducing staffing levels and better managing its power and chemical expenses. These actions mask underlying inflation trends that have averaged 3.0% on District expenses. Recommendation

The District faces several significant challenges. The backlog of required line replacements has been growing faster than our pace of ongoing renewal and now stands at 22 miles of pipe. The District has $4M in pension liabilities which accrue at a rate of 7.5%, and existing rates and projected expenses require the use of reserves to fund the business. To address these challenges, a rate increase above projected inflation is required. Balancing the needs of the District, policy direction from the Board, and the Board’s historical desire to minimize rate impacts on the community, a 7.5% annual rate increase is recommended for the next five years.

Attachments: Appendix A – Assumptions for Five-Year Cash Flow Projections Appendix B – 5-Year Cash Flow Model (7.5% annual increase, $2M pension buydown) Appendix C – Summary of the planned Capital and Renewal & Replacement Projects F:\FINANCE\F&I\2016 Rate Study Memo Packet\2016 Sewer Service Rate Study 2016-21.doc

100

150

200

250

300

350

400

450

500

550

600

2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16

Single Family Sewer Rates, OLSD vs. Average in Alameda Co.

2003 - 2016

($) County Average

OLSD

$206 (65%)

$206 (52%)

$294 (62%)

$357 (63%)

Oro Loma Sanitary District

MEMORANDUM

TO: Board of Directors FROM: Jason Warner, General Manager Arlene Wong, Finance Manager DATE: January 25, 2016 SUBJECT: ASSUMPTIONS FOR 5-YEAR CASH FLOW PROJECTIONS & RATE

INCREASE ANALYSIS FOR FY 2015-16 (Year 0) to FY 2020-21 (Year 5)

• The District is formulating a rate increase proposal for the 5-year period beginning July 1, 2016. Annual sewer rate increases will be applied to the following customer categories - residential (billed through Alameda Co.) and commercial (billed through EBMUD). Throughout the proposal and the related analysis, the 5 years will be referred to as follows:

Year 1 - FY 2016-17 Year 2 - FY 2017-18 Year 3 - FY 2018-19 Year 4 - FY 2019-20 Year 5 - FY 2020-21

• As a subset of the District's Sewer Service Revenues, Significant Industrial Users (SIUs) are industrial customers that generate substantial chemical loadings (such as suspended solids and biochemical oxygen demand) into their wastewater discharge, These customers are usually businesses engaged in large-scale manufacturing, and their discharge typically exceeds certain limits for them to be classified as SIUs. In addition to the strengths of chemical loadings, they are billed based on water consumption volume. Due to the impact of a prolonged drought, and efforts within the community to conserve water, revenues from SIUs in Year 1 are assumed to remain constant despite an increase in the per unit charge. A 2% annual increase in revenues is assumed in Year 2 through Year 5.

• Agency Treatment Charges on Castro Valley Sanitary District (CVSD) – The District provides sewer treatment to CVSD customers and receives reimbursements based on actual flow. Annual revenue growth is assumed at 3%. Since CVSD owns 25% of the District's treatment plant, it also participates in the costs of Renewal & Replacement (R&R) projects related to the treatment plant and administration, which are projected based on the 5-year R&R Plan.

• Agency Treatment Charges on City of San Leandro and City of Hayward – The District provides sewer treatment to certain areas within the Cities of San Leandro and Hayward due to proximity of these customers to the District's facilities. The Cities collect sewer fees from these customers, and remit the revenues to the District (75% from San Leandro, 90% from Hayward). Revenue growth for this category is assumed at 3% annually.

Appendix A

• Solid Waste Contract Fees – The District contracts with Waste Management (WM) to provide garbage services to its customers and receives 6% of its gross revenues as Contract Fees. Based on the contract, garbage rates increase annually in September by a combination of 2 factors - the CPI-U index and the weighted average of the Teamster Union Local 70 labor cost, benefits and pensions. A 3% annual garbage rate increase per year is assumed.

• Investment income is calculated by applying 0.6% to the ending cash balance of prior year.

• A 3% general inflation rate is assumed for labor, supplies and operating needs.

• A 50% increase in the current pace of sewer line replacements.

• Certain items are held constant due to immateriality.

• CVSD's contribution is 19% of total Unfunded Actuarial Liability (UAL) pension funding.

• Savings from UAL funding are assumed to be 7.5% cumulative yearly. F:\FINANCE\F&I\2016 Rate Study Memo Packet\2016 Rate Increase Discussion Assumptions-Appendix A.doc

ORO LOMA SANITARY DISTRICT - FIVE-YEAR CASH FLOW PROJECTIONS

FOR THE FISCAL YEARS ENDING JUNE 30, 2016 TO JUNE 30, 2021

With $1 million UAL payment in Y0 and Y1 ($2 million total) Assumed Annual Inflation = 3%

Assumed Annual Rate Increase 3% 7.5% 7.5% 7.5% 7.5% 7.5%

Sewer Rate $206 $221 $238 $256 $275 $296

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Projected Projected Projected Projected Projected Projected

Operating revenues

District service charges 11,748,800$ 12,579,500$ 13,490,503$ 14,465,480$ 15,512,456$ 16,636,830$

Agency treatment charges 2,497,550 2,647,700 2,583,640 2,964,504 2,919,341 2,668,526

Sanitary truck waste charges 50,000 50,000 50,000 50,000 50,000 50,000

Grease receiving charges 120,000 120,000 120,000 120,000 120,000 120,000

Permits and inspection fees 113,000 113,000 113,000 113,000 113,000 113,000

Contract fees - Waste Management 943,000 1,000,000 1,030,000 1,060,900 1,092,727 1,125,509

Recycling charges - residential 2,290,000 2,290,000 2,290,000 2,290,000 2,290,000 2,290,000

Recycling charges - commercial 96,000 96,000 96,000 96,000 96,000 96,000

Landfills fees - Measure D 330,000 330,000 330,000 330,000 330,000 330,000

Overhead revenues 580,000 600,000 600,000 600,000 600,000 600,000

Total operating revenues 18,768,350 19,826,200 20,703,143 22,089,884 23,123,524 24,029,866

Operating expenses (include R&R projects)

Engineering 828,995 853,885 881,702 907,778 934,636 962,300

Sewage collections 3,116,450 3,091,160 3,501,795 3,727,661 3,605,053 3,659,018

Sewage treatment plant (ops+mtn) 7,222,285 7,723,795 7,374,109 8,810,020 8,539,195 7,443,059

Sewage disposal -EBDA 759,550 760,215 779,444 799,250 819,650 840,662

Administration and general 1,601,155 1,710,765 1,770,888 1,822,515 1,875,690 1,930,461

Depreciation 3,351,200 3,650,000 3,800,000 3,850,000 3,900,000 3,950,000

Decrease in EBDA equity 100,000 100,000 100,000 100,000 100,000 100,000

Solid waste 383,420 393,965 405,784 417,957 430,496 430,496

Recycling 2,616,775 2,627,415 2,706,237 2,787,425 2,871,047 2,871,047

Savings from UAL funding - (75,000) (150,000) (150,000) (150,000) (150,000)

Total operating expenses 19,979,830 20,836,200 21,169,959 23,072,605 22,925,768 22,037,042

Operating income (loss) (1,211,480) (1,010,000) (466,816) (982,720) 197,757 1,992,824

Nonoperating revenues

Investment income 108,000 91,800 76,169 72,044 62,184 57,616

Rents and leases 80,000 81,000 81,500 82,000 82,500 83,000

CVSD UAL funding reimbursement 190,000 190,000 - - - -

Recovery of uncollectible accounts 10,000 10,000 10,000 10,000 10,000 10,000

Other miscellaneous revenues 118,000 118,000 118,000 118,000 118,000 118,000

EBDA and other agreement refunds 80,000 80,000 80,000 80,000 80,000 80,000

Grant revenues (Ecotone Grant) - 370,500 617,500 247,000 - -

Other - - - - - -

Total nonoperating revenues 586,000 941,300 983,169 609,044 352,684 348,616

Nonoperating expenses

Decrease in fair value of investments - - - - - -

Funding of unfunded pension liability 1,000,000 1,000,000 - - - -

Write-off of uncollectible accounts 13,200 13,200 13,200 13,200 13,200 13,200

Other miscellaneous expenses 305,000 380,000 380,000 380,000 380,000 380,000

Total nonoperating expenses 1,318,200 1,393,200 393,200 393,200 393,200 393,200

Income before contributions and transfers (1,943,680) (1,461,900) 123,153 (766,877) 157,241 1,948,240

Connection fees and other contributions 120,000 120,000 120,000 120,000 120,000 120,000

Change in net assets (1,823,680) (1,341,900) 243,153 (646,877) 277,241 2,068,240

Beginning cash position $20,265,918 $15,029,721 $12,694,871 $12,007,287 $10,364,048 $9,602,738

Change in net position (1,823,680)$ (1,341,900)$ 243,153$ (646,877)$ 277,241$ 2,068,240$

+ Depreciation 3,351,200 3,650,000 3,800,000 3,850,000 3,900,000 3,950,000

+ Decrease in EBDA equity 100,000 100,000 100,000 100,000 100,000 100,000

+ Write-offs of plant and equipment and uncollectible accounts 13,200 13,200 13,200 13,200 13,200 13,200

- Capital outlays not included in change in net position (8,439,000) (5,440,000) (4,975,000) (5,168,750) (5,143,750) (6,887,500)

+ Capital repayments not included in change in net position 1,566,000 683,850 131,063 209,188 92,000 740,438

+ Receivables at 6/30/15 received during FY 15-16 1,428,355

- Payables at 6/30/15, paid during FY 15-16 (1,305,611)

- Retention held at 6/30/15, to be paid during FY 15-16 (126,661)

Ending cash position $15,029,721 $12,694,871 $12,007,287 $10,364,048 $9,602,738 $9,587,116

Reserves 8,902,500 8,902,500 8,902,500 8,902,500 8,902,500 8,902,500

Available cash 6,127,221 3,792,371 3,104,787 1,461,548 700,238 684,616

Appendix B

5-Year Renewal & Replacement Plan

FY 2015-16 to FY 2020-21


FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21

Collections

Asset Management - Lift Stations 3,000 30,000 30,000 30,000 30,000 30,000

Lift Stations General & Recurring Maintenance 35,000 80,000 80,000 80,000 80,000 80,000

Collection System Asset Repair & Maintenance 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000

Collection System GIS Updates & Maintenance 65,000 25,000 25,000 25,000 25,000 25,000

Collection System Source Detection & Hydraulic Model Updates 42,000 10,000 10,000 150,000 10,000 10,000

Easement Clearing & Road Maintenance 50,000 50,000 50,000 50,000 50,000 50,000

Hayward High School Easement Road Repair 50,000

Critical Repair - Collections 15,000

Subtotal - Collections 1,510,000 1,445,000 1,445,000 1,585,000 1,445,000 1,445,000

25% Contingency - Collections 361,250 396,250 361,250 361,250

Total Collections 1,510,000 1,445,000 1,806,250 1,981,250 1,806,250 1,806,250

Treatment Plant

78" Plant Influent Pipeline Inspection/Lining 25,000 500,000

Arc Flash Hazard Review 30,000

Asset Management - Treatment Plant 50,000 30,000 30,000 30,000 30,000 30,000

Building & Roadway Lighting Repair 30,000 30,000 30,000

CEPT System Rehabilitation 35,000

Digesters Facilities Improvement Plan 12,400 75,000

Digester #1 Rehabilitation 300,000




Flare Controls 50,000

Gates & Valves Replacement 43,000 25,000 25,000 25,000 25,000 25,000

Headworks Concrete Coating 250,000 150,000

Mosquito Abatement 50,000

Primary Clarifier Rehabilitation 500,000

Recurring Maintenance - Landscaping & Grounds 25,000 25,000 25,000 25,000 25,000 25,000

Recurring Maintenance - Plant Painting 377,500 150,000 130,000 150,000

Recurring Maintenance - Paving/Roadway/Berm & Post-Digesters 40,000 500,000 40,000 40,000

Recurring Maintenance - Roofing 25,000 25,000 25,000 25,000 25,000 25,000

Pre-Design Studies & Testing 20,000 30,000 30,000 30,000 20,000 20,000

Recycled Water Study 150,000

Safety Improvements 20,000 30,000 30,000 30,000 30,000 30,000

Secondary Clarifier Rehab (Demolition in FY 18-19) 750,000 250,000

Concrete Assessment & Rehabilitation 50,000 20,000 100,000 20,000 150,000

Critical Repair - Treatment Plant 29,500 70,000

Subtotal - Treatment Plant 1,172,400 1,505,000 775,000 1,770,000 1,395,000 355,000

Engineering & Administration

Computers & Network Upgrades - Engineering 10,000 10,000 10,000 10,000 10,000 10,000

Computers & Network Upgrades - Administration 10,000 10,000 10,000 10,000 10,000 10,000

Fiscal Agent Fees 8,000

Critical Repair - Administration 30,000 30,000 30,000 30,000 30,000 30,000

Subtotal - Engineering & Administration 58,000 50,000 50,000 50,000 50,000 50,000

EBDA (119,250) 119,250 106,000 106,000 106,000 106,000 106,000

25% Contingency - Treatment Plant, Engr & Admin 232,750 481,500 387,750 127,750

Total Treatment Plant, Engineering & Administration 1,349,650 1,661,000 1,163,750 2,407,500 1,938,750 638,750

CVSD Partipation (25% on applicable projects) 301,550 384,700 252,750 563,688 446,500 121,500

Total District R&R Projects 2,859,650 3,106,000 2,376,000 3,511,000 2,996,000 1,956,000

Total 25% R&R Contingencies - - 594,000 877,750 749,000 489,000

Total R&R with Contingencies 2,859,650 3,106,000 2,970,000 4,388,750 3,745,000 2,445,000

Appendix C

5-Year Capital Improvement Plan

FY 2015-16 to FY 2020-21


FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21

Collections

Lift Stations - General 49,000 50,000 50,000 50,000 50,000 50,000

Lift Stations - Canyon Ridge & Blackstone Surge Suppression 60,000

Lift Stations Rehabilitation - Clausen & Edgebrook (FY 15-16) 175,000 150,000 150,000 150,000 100,000 -

Lift Stations - Remote Site PLC Upgrades 80,000 100,000 100,000

Trojan MCC/Backup Generator Replacement 400,000

Truck Replacement 65,000

Lift Stations - Wickman Valve Vault 126,000

CCTV Camera 30,000

Bockman Ave Trunk Sewer/Siphon Rehabilitation -

Bayfair Tributary Sewers Capacity -

Bancroft Capacity -

Hesperian/Hacienda Sewer Realignment 15,000 -

Pipeline Replacement Program 3,165,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000

CCTV Van Standby 80,000

Hydro Replacement 220,000

Vactor Replacement 250,000

Standby/Emergency Response Truck Replacement 60,000

Collections Trucks Replacement 35,000 35,000 35,000

Critical Equipment - Collections - 15,000

Subtotal - Collections 3,690,000 3,260,000 3,550,000 3,455,000 3,810,000 3,130,000

25% Contingency - Collections 887,500 863,750 952,500 782,500

Total Collections 3,690,000 3,260,000 4,437,500 4,318,750 4,762,500 3,912,500

Treatment Plant

Aerator Modifications 340,000

Chlorine Contact Basin Water Champ Replacement 20,000 20,000

Cogeneration Breaker Replacement 77,000

Cogeneration Engine Overhaul 175,000 175,000 175,000

Cogeneration System Upgrade/Replacement 2,000,000

Dewatering System 150,000

Digesters #1 & #2 Mixer Rehabilitation/Replacement 100,000

Digester #3 Mothball 100,000

DO Meter Replacement 25,000

Gate & Valve Replacements 7,000

Grit Detritor Rehabilitation 75,000

Grit Pump Replacement and Piping Rehabilitation 200,000

Influent Grinder Rebuild 30,000 30,000 30,000 30,000 30,000 30,000

Lab Cabinet Replacements 20,000

Maintenance Shop Vehicle Lift 50,000

Oil Storage Room 18,000

Old Heater Building Pipe Trench Sump 35,000

Primary Discharge #4 Water Pipe Replacement 25,000

Safety Improvements 28,000

SCADA System Replacements 125,000 75,000 75,000 75,000 75,000

SCADA System Upgrades 175,000 30,000 30,000 30,000 30,000 30,000

Truck Wash Drainage Pump & Station Upgrades 30,000

Vehicle Replacements 35,000 35,000 40,000 40,000 40,000 40,000

Wet Weather Equalization/Ecotone 3,814,000 1,485,000

Critical Equipment - Treatment Plant 70,000 70,000

Subtotal - Treatment Plant 4,719,000 2,050,000 400,000 650,000 275,000 2,350,000

Engineering & Administration

Computers & Network Upgrades - Engineering 10,000 10,000 10,000 10,000 10,000 10,000

Computers & Network Upgrades - Administration 10,000 10,000 10,000 10,000 10,000 10,000

Administration Roof Replacement 100,000

Critical Equipment - Administration 10,000 10,000 10,000 10,000 10,000 10,000

Subtotal - Engineering & Administration 30,000 130,000 30,000 30,000 30,000 30,000

25% Contingency - Treatment Plant, Engr & Admin 107,500 170,000 76,250 595,000

Total Treatment Plant, Engineering & Administration 4,749,000 2,180,000 537,500 850,000 381,250 2,975,000

CVSD Partipation (25% on applicable projects) 1,566,000 683,850 131,063 209,188 92,000 740,438

Total District CIP Projects 8,439,000 5,440,000 3,980,000 4,135,000 4,115,000 5,510,000

Total 25% CIP Contingencies - - 995,000 1,033,750 1,028,750 1,377,500

Total CIP with Contingencies 8,439,000 5,440,000 4,975,000 5,168,750 5,143,750 6,887,500

Total District R&R and CIP Projects 11,298,650 8,546,000 6,356,000 7,646,000 7,111,000 7,466,000

Total 25% R&R and CIP Contingencies - - 1,589,000 1,911,500 1,777,750 1,866,500

Total R&R and CIP with Contingencies 11,298,650 8,546,000 7,945,000 9,557,500 8,888,750 9,332,500

Appendix C

Resolution No. _____

A RESOLUTION OF THE SANITARY BOARD OF ORO LOMA SANITARY DISTRICT TO OPT

INTO PHASE I AND PHASE II OF THE ALAMEDA COUNTY WASTE MANAGEMENT AUTHORITY (ACWMA) MANDATORY COMMERCIAL RECYCLING ORDINANCE

RESOLVED, by the Sanitary Board of Oro Loma Sanitary District, Alameda County, California, that:

WHEREAS, on January 25, 2012, ACWMA adopted an Ordinance Requiring Actions to Reduce Landfilling of Recyclable and Organics Solid Waste from Businesses, Multi-Family Residences, and Self-Haulers (herein referred to as the “Mandatory Recycling Ordinance”); and,

WHEREAS, Section 12, Local Regulations and Opt-Out and Opt-In Provisions, of the

Mandatory Recycling Ordinance provides that Alameda County jurisdictions have the option to opt out of Phase I and/or Phase II of the ordinance, and to opt in at a later date subject to approval by the Enforcement Official or the Authority Board; and,

WHEREAS, the District opted out of the Mandatory Recycling Ordinance Phase I and Phase II

for its L1 (Unincorporated) service area; and,

WHEREAS, the District has reviewed the status of its commercial and multi-family recycling and organics programs, and determined that it would be in its and its customers’ best interest to opt into Phase I and Phase II of the Mandatory Recycling Ordinance for the L1 (Unincorporated) area at this time.

NOW, THEREFORE, BE IT RESOLVED, that the Sanitary Board of Oro Loma Sanitary District hereby requests to opt into Phase I and Phase II of the Mandatory Recycling Ordinance for its L1 (Unincorporated) service area, should an implementation date of January 1, 2017 be approved by ACWMA.

I certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted by the Sanitary Board of Oro Loma Sanitary District, Alameda County, California, at a meeting thereof held on the 19th of April 2016, by the following vote of the members thereof: AYES, Members: NOES, Members: ABSENT, Members: _________________________________ President COUNTERSIGNED: ________________________________ Secretary