D5 JUNE 17, 2015 DOCUMENT NUMBER:

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1 Notice and Agenda REGULAR MEETING BOARD OF DIRECTORS COUNTY SANITATION DISTRICT NO. 5 To be held at the TORRANCE CITY HALL THIRD FLOOR ASSEMBLY ROOM 3031 Torrance Boulevard, Torrance, California WEDNESDAY June 17, 2015 At 1:30 P.M. Governing Body Director Alternate CULVER CITY O'LEARY COOPER EL SEGUNDO FUENTES JACOBSON (Chairperson) GARDENA TANAKA MEDINA HAWTHORNE BROWN INGLEWOOD BUTTS LAWNDALE PULLEN-MILES KEARNEY LOMITA SANCHEZ GAZELEY LOS ANGELES CITY WESSON BUSCAINO MANHATTAN BEACH POWELL BURTON PALOS VERDES ESTATES GOODHART KING RANCHO PALOS VERDES KNIGHT BROOKS REDONDO BEACH ASPEL BRAND ROLLING HILLS PIEPER DIERINGER ROLLING HILLS ESTATES ADDLEMAN ZUCKERMAN TORRANCE FUREY RIZZO LOS ANGELES COUNTY ANTONOVICH KNABE 1. Receive and Order Filed Action Appointing Ms. Jennifer L. King as Alternate Director from the City of Palos Verdes Estates 2. Approve Minutes of Regular Meeting Held May 20, Receive and Order Filed Report of Warrants in Amount of $15, Summary: The warrants issued by the local District are for costs incurred for operation and maintenance, such as electricity, water, telephone, and chemicals, and for relatively small capital projects. Expenditures are made in accordance with the guidelines established by the budget procedure and the purchasing policy that has been adopted by the Board. 4. Receive and Order Filed Departmental Invoice in Amount of $4,605, Summary: A departmental invoice is an internal document that transfers each District s proportionate share of expenditures made by District No. 2, the administrative District, on behalf of the participating Districts in accordance with the authority granted through the approved annual budget and applicable joint powers agreement. 5. Report on Bids and Award of Contract for Construction of Madison Street Trunk Sewer Extension Replacement Between Manhole Nos and 2299 Summary: Bid summary/recommendation to award and map are attached. 6. Re: Wastewater Budget Matters for Fiscal Year (a) Establish by Resolution Appropriations Limit of $41,623,295 as Required by California Government Code Section 7910 Utilizing the Population Change within the County (b) Adopt Operating Fund Budget (c) Adopt Resolution Requesting Tax Levy of $10,066,000 (d) Authorize Appropriations per Budget Summary: A letter discussing fiscal year budget matters accompanies the agenda. Adjourn NOTE: Prior to or during the regular meeting session, the Chief Engineer and General Manager may update the Directors on various matters concerning the Districts that may be of current interest to the Directors. Members of the public may address the Board of Directors on any item shown on the agenda or matter under the Board s authority. A Request to Address Board of Directors form is available in the foyer. In compliance with the Americans with Disabilities Act, if you require special assistance to participate in this meeting, please contact the Secretary to the Boards Office (562) , extension Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28CFR et seq. ADA Title II). Agendas and supporting documents or other writings that will be distributed to Board members in connection with matters subject to discussion or consideration at this meeting that are not exempt from disclosure under the Public Records Act are available for inspection following the posting of this agenda at the office of the Secretary to the Boards of Directors located at the Districts' Joint Administration Building, 1955 Workman Mill Road, Whittier, California, or at the time of the meeting at the address posted on this agenda. D5 JUNE 17, 2015 DOCUMENT NUMBER:

2 REPORT OF WARRANTS DISTRICT NO. 5 (for 06/17/20 ls Board Meeting) Date Description Amount OS/04/20 ls AT&T $ OS/OS/20 ls W. W. Grainger, Inc OS/06/201S Verizon OS/07/201S California Water Service Company 9.62 OS/07/201S City of Inglewood 108.SO OS/14/201S California Water Service Company OS/14/20 IS City of Los Angeles Department of Water & Power OS/14/20 IS Golden State Water Company OS/14/20 IS Quinn Company S04.26 OS/IS/20 IS Los Angeles County Treasurer OS/18/20 IS State Street Corporation IS6.7S OS/20/20 IS Southern California Edison I0,369.S4 OS/2I/201S City of Torrance OS/26/20 IS Daily Journal Corporation 1, OS/26/201S Fleet pride 8.89 OS/28/2015 AT&T I,88!.88 $ IS, SOUTH BAY CITIES SANITATION DISTRICT OS/04/20 15 AT&T $ /04/20 IS Patten Systems, Inc OS/04/20 15 Superior Electric Motor Service Corp. I, /06/201S Verizon 1, OS/07 /20 IS South Coast Air Quality Management District 4SI.S7 OS/07/201S Quality Fence Co., Inc. 1, /14/20 ls California Water Service Company /15/20 IS Los Angeles County Treasurer /15/20 IS Consumers Pipe & Supply Co. 8S /15/20 IS Jack Rubin & Sons, Inc. IS /18/20 IS State Street Corporation S6.21 OS/18/20 IS The Home Depot OS/18/20 IS Kaman Industrial Technologies Corp. 2, IS0.6S OS/19/20 IS Noble Americas Energy Solutions 41S.76 OS/20/20 15 Southern California Edison 6, /21/201S California Water Service Company OS/27/2015 Coastline Equipment $ 15,179.78

3 COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY DEPARTMENTAL INVOICE FOR THE MONTH ENDED 04/30/15 To: County Sanitation District No. 5 (Org. Receiving Services) Date Service Accrued: April 30,2015 From: County Sanitation District No.2 (Org. Providing Services) Date Prepared: May 18,2015 DESCRIPTION District No. 5 share of expenditures made by District No.2, the administrative District, in accordance with the authority granted through the approved annual budget and applicable Joint Powers Agreement: DE131T: Operation & Maintenance Joint Administration - Capital Joint Outfall- Capital Local - Capital Joint Outfall - Capital Improvement Fund $ 3,424,034. I 6 168, , , I 56, Total of all charges $ ==='4 '='60~5=',0='6='8.='98~ Recap 40 Document No. 353 Date Received/Ordered Filed:

4 TO: BOARD OF DIRECTORS OF COUNTY SAN ITATION DISTRICT NO. 5 OF LOS ANGELES COUNTY RE: AGENDA ITEM NO.5 FOR BOARD MEETING June 17, BIDS were received at the District Office on May 28, 2015 FOR MADISON STREET TRUNK SEWER EXTENSION REPLACEMENT BETWEEN MANHOLE NOS AND 2299 No. of Bids Received: 7 BIDDER TOTAL BID GRFCO, Inc. Bali Construction, Inc. Miramontes Construction Company, Inc. C harles King Company, Inc. Colich & Sons, L.P. Mike Bubalo Construction Co., Inc. C larke Contracting Corporation $479, $528, $546, $546, $607, $677, $695, RECOMMENDATION: Award contract to GRFCO, Inc., low bidder, in the amount of $479, Engineer's Estimate: $555,000 Grace Robinson Hyde Chief Engineer and General Manager

5 MADISON STREET TRUNK SEWER EXTENSION REPLACEMENT BETWEEN MANHOLE NOS AND 2299 PROJECT ROUTE ~ -N- 1

6 COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY Workman Mill Road, Whittier, CA Mailing Address: P.O. Box 4998, Whittier, CA Telephone: (562) , FAX: (562) G RAC E RO BINSON HYDE Chief Engineer and General Manager June 10,2015 Board of Directors County Sanitation District No. 5 of Los Angeles County Directors: Wastewater Budget Matters for Fiscal Year The agenda for the regularly scheduled Board meeting on June 17, 2015, contains an item relating to wastewater budget matters for fiscal year These matters include establishing an appropriations limit on the proceeds of taxes, adopting the sewerage system final budget, requesting the tax levy, and authorizing appropriations per the sewerage system budget. Appropriations Limit The Constitution of the State of California places a limit on the authorization to expend the proceeds of taxes levied by state and local governments in California. In addition, the Government Code requires the governing body for each local jurisdiction to establish, by resolution, an appropriations limit for each fiscal year. The appropriations limit for fiscal year has been determined by adjusting the previous limit for fiscal year based upon population change factors for Los Angeles County and the change in the California Personal Per Capita Income. The appropriations limit has also been adjusted to include the increased operation and maintenance costs of secondary treatment needed to comply with federal requirements. All of this is in accordance with the procedures outlined in Article Xllffi of the Constitution and Section 7910 of the Government Code. The proposed appropriations limit and anticipated tax revenue are shown in Exhibit No. 1. This information has been available to the public at the Districts' Joint Administration Office in conformance with the requirement that the documentation used in the determination of the appropriations limit be available fifteen days prior to its establishment by the Board of Directors. Final Budget for Fiscal Year Enclosed for your review are the proposed final budget for fiscal year , a list of proposed capital projects, and information on the funds set aside in reserves. The reserves, which are shown in the rate stabilization fund, are used for a number of purposes: ( 1) smoothing out the service charge rates from year to year and avoiding spikes in any given year as expenditures fluctuate, (2) accumulating funds to pay for large capital projects that could have a major impact on rates, and (3) meeting unforeseen emergencies that might arise during the year. Each District has an informal target of establishing reserves equal to six months of O&M expenditures plus one year of debt service. In addition, each District has cash on hand that is used for meeting expenditures from the start of the fiscal year until property taxes and service charges are received in late December. Doc: , Recycled Paper tj

7 Board of Directors 2 June 10,2015 The proposed final budget provides a comparison with the current budget and a breakdown of the items included in the budget. In preparing the final budget, it is projected that the general revenue sources available to the District for meeting expenses during the coming fiscal year include capital improvement fund monies, a pro rata share of the ad valorem (property) taxes, grants, state low-interest loans, industrial wastewater surcharge, interest income, contract revenue, and reserves. The supplemental revenue required to meet expenses will be collected through service charges. The final budget reflects the service charge rate as adopted by the Board on June 16, 2014, a rate of $ per month ($146 per year) for a single-family home. In addition to the expenses directly incurred by each District for the facilities it owns, the final budget also includes each District's proportionate share of the costs associated with facilities and services jointly shared with other Districts. In accordance with the Joint Administration and Joint Outfall Agreements, Joint Administration and Joint Outfall costs are allocated to each signatory District according to the ratio of the number of sewage units in a District to the total number of sewage units in all the Districts signatory to each agreement. A sewage unit represents the average daily sewage flow and strength (measured in terms of chemical oxygen demand and suspended solids) from a single-family home. In the Joint Outfall System (JOS), there are approximately 1.9 million sewage units. This method of allocating costs considers flow as well as the strength of sewage from all types of users and is the most equitable way to distribute Joint Administration and Joint Outfall costs. Significant Expenditures Most of the expenditures outlined below relate to the JOS. This is the system of trunk sewers and treatment plants jointly owned by the seventeen Districts signatory to the Joint Outfall Agreement. Each District is required to pay its proportionate share of these costs. In addition, a District may have costs related to sewers and pumping plants specifically owned by that District. Those costs are solely borne by that specific District. Treatment Facilities O&M- Despite efforts to minimize costs of wastewater treatment in the JOS (as discussed later), some components of O&M continue to rise, in some instances at greater than the rate of inflation. The cost of natural gas, which is used for digester heating and supplemental energy production, has risen 14 percent largely due to greenhouse gas emission fees. In addition, electricity costs have risen nearly 7 percent due to increased transmission costs and meeting the State's renewable power goals. For all of the JOS shared facilities, combined utility purchases are expected to increase by $3 million in fiscal year Diversifying Biosolids Management for Reliability - The management of the Joint Water Pollution Control Plant (JWPCP) biosolids, which are treated residuals from wastewater processing, continues to be a major expense for the Districts. With the increasingly more stringent regulatory requirements and local county ordinances limiting lower cost biosolids management options, the cost of developing new management alternatives and transporting biosolids to acceptable land application sites has risen steadily. Consequently, the Districts have been actively engaged in developing a biosolids management program that focuses on diversity and reuse, while maintaining Districts' control. An example of this is the joint venture with the Inland Empire Utilities Agency to develop a fully enclosed composting facility in metropolitan Southern California, which is now in operation and markets all of the finished compost to retailers, landscaping companies, and municipalities. As part of the Districts' overall strategy regarding biosolids management, the Districts purchased approximately 14,500 acres from Westlake Farms in Kings County to secure composting capacity for recycling of biosolids with agricultural and green waste. The Districts are developing the site in phases Doc:

8 Board of Directors 3 June 10,2015 (5 potentially) in order to manage costs and construct capacity to meet future needs. The composting facilities will include indoor mixing of biosolids with agricultural and urban green waste as part of the efforts to control potential odors at the site. Most of the support facilities associated with Phase I, including the administration building, site access roads, and some utility infrastructure to support development of the composting facility, have been completed. The construction of the final component of Phase I, the actual mixing and composting facilities, is scheduled to be complete by November 2015, and will commence operation at this time. The total cost of Phase I is approximately $68.5 million, with $1 million being budgeted for fiscal year The total cost of biosolids management in fiscal year is estimated at $32 million, with $6.1 million of that cost attributable to the startup and operation of the Westlake Farms facility (now called Tulare Lake Compost). These costs should remain relatively stable in the future, increasing only at the rate of inflation. However, if more stringent regulatory requirements or restrictive local county ordinances are adopted, future costs may increase appreciably to implement management alternatives for transportation of biosolids to acceptable land application sites. Using Technology to Minimize Sewer System Maintenance- Expenditures for the Joint Outfall Districts continue to include significant costs for rehabilitation of sewers to correct problems arising from sulfide corrosion. In an effort to slow the corrosion rate and control odors, iron salts and sodium hydroxide are routinely added to the sewer system and the crowns of the sewer pipes are sprayed with acid-neutralizing chemicals at a total cost of approximately $16 million per year. Although the chemical addition has reduced the rate of corrosion, it has not eliminated the problem. Where feasible, the Districts' sewer rehabilitation program utilizes technological advancements for the in-place repair of sewer lines by inserting corrosion-resistant liners into the sewers. These liners restore the structural integrity of damaged lines and represent a permanent solution as they prevent further corrosion. In some instances, corroded sewers are being replaced with pipelines containing corrosion-resistant material. The Districts will continue to address preventative maintenance and critical infrastructure. The cost of the sewer rehabilitation work is expected to be approximately $29 million in fiscal year and will continue at this level for several more years until all of the existing sewer system is fully rehabilitated. Upgrading Pumping Plants to Ensure Reliable Operation- The Long Beach Main Pumping Plant (LBMPP) is not only the Districts' largest pumping plant, but it houses an essential monitoring system of all of the Districts' other pumping plants. With the exception of minor modifications, the LBMPP remains as it was since its last upgrade in Throughout the facility, existing equipment and structures are near the end of their useful life. As a result, annual operation and maintenance costs at the LBMPP are rising. Renovation of the pumping equipment and facilities are necessary in order to enable the Districts to continue its successful operation. Renovations began at the start of fiscal year and will be complete by the end of2016. The total project cost is approximately $42 million, with $11 million to be spent in Making Disinfection Processes Safer at Upstream Water Reclamation Plants (WRPs)- At two of the Districts' WRPs, effluent disinfection has historically been accomplished through a two-step process using gaseous chlorine (a very reactive and corrosive gas) for initial chlorination/disinfection and sulfur dioxide (a precursor to the formation of sulfuric acid) for de-chlorination prior to discharge. In an effort to make the disinfection process more stable and safer, the systems at the San Jose Creek and Los Coyotes WRPs are being converted to the use of chlorine bleach and bisulfite at a total cost of approximately $11.4 million, with $5.8 million being budgeted in Doc:

9 Board of Directors 4 June 10,2015 Improving Operational Efficiency through Flow Equalization at the San Jose Creek WRP - Regulatory mandates necessitated the construction of facilities to remove nitrogen from the effluent (i.e. nitrification-denitrification, or NON) at the San Jose Creek WRP. An unintended consequence of having had to construct these facilities is a down rating of the WRP capacity. In order to restore the WRP to its original capacity, and to better support the production and use of recycled water, the construction of flow equalization facilities will begin in fiscal year and is expected to be completed in fiscal year The total project cost is $55 million, with $2.0 million being budgeted in The Districts applied for and were awarded a $3 million grant under the State's Proposition 84 funding for this project. Ensuring Effluent Disposal for the JOS -As previously discussed with the Boards, the Districts have embarked on a major, long-term, capital-intensive project to provide additional effluent disposal redundancy and capacity for the JWPCP. The facility plan and associated environmental impact report for this project (known as "Clearwater") was approved in November The recommended alternative is the construction of an additional tunnel for JWPCP effluent which will enhance the reliability of the overall plant operation and accommodate approved future growth in the areas tributary to JWPCP. The two existing tunnels were built in the late 1930's and 1950's, respectively, and have not been taken out of service since their construction. The proposed tunnel will allow the existing facilities to be refurbished, as necessary, and placed back into service to provide needed redundancy. Additionally, the new tunnel would provide greater capacity in handling the effluent flows during storm events when the amount of wastewater being treated typically increases. The new tunnel system has been estimated to cost approximately $600 million. Although major expenditures related to the tunnel are beyond the current budgetary period, it is expected that the Districts will acquire state low-interest loans to finance the construction of the recommended project. Contracts have been awarded for the first phases of the design of this project, and it is anticipated that the Districts will spend approximately $6.5 million during fiscal year on these activities. As mentioned earlier in this letter, it will be imperative in the near future for each District to have strong cash reserves to position the JOS for favorable financing of the tunnel construction, and help lower the cost to rate payers. Any rate increases associated with the actual construction of the project will be brought to the Boards for approval before construction contracts are awarded. Efforts to Reduce Costs The Districts are obligated to comply with all of the regulatory requirements imposed by the United States Environmental Protection Agency (EPA) and the State Water Resources Control Board and must be willing to expend the resources to do so. However, before increasing rates and passing those costs on to residents and businesses, the Districts take all necessary steps to reduce those costs. The following summarizes the key cost saving measures the Districts have implemented. Bulk Purchasing of Chemicals - By taking advantage of the Districts collective size and strength, the Districts receive multiple discounts when purchasing needed chemicals and other supplies. For all treatment plants and sewer maintenance groups, the volume discounts range from I 0% to 50%, resulting in a significant cost savmgs. The Districts save approximately $1.9 million annually by purchasing chemicals in bulk. Maximizing Energy Revenue and Minimizing Energy Costs - Historically, energy costs have represented a significant portion of the cost of operating the wastewater treatment plants. In order to address the impact of energy costs, the Districts have a dedicated Energy Recovery Engineering (ERE) Section that focuses on reducing the cost of electricity and developing renewable energy sources. The ERE Section keeps electricity costs down through three major activities: (I) being an active player in the Doc:

10 Board of Directors 5 June 10,2015 electricity market to obtain the lowest purchase price possible, (2) reducing the amount of energy used, and (3) developing the Districts own sources of renewable energy through the use of treatment by-products (e.g., digester and landfill gas). The Districts keep their cost of purchased electricity lower primarily by buying power from nontraditional sources. Specifically, the Districts have purchased power through California's Direct Access (DA) program, which typically affords the opportunity to purchase power from independent producers at rates below standard utility rates. Being a participant in the DA program typically produces annual savings of $1 million. While we did not see savings in fiscal year , the Districts will continue to participate in the DA program to ensure they can get the best price in the energy marketplace. In addition, the Districts utilize power originally generated at the Districts' Puente Hills Landfill. The solid waste operations group sells it to the wastewater operations group at a price greater than it would receive by selling it to the electrical grid and the wastewater operations group purchases it at price less than what it would pay by purchasing it from the electrical grid- a win-win for both groups. Combined, these two programs have generated an annual savings of approximately $1.0 million. The Districts routinely conduct energy audits at the various WRPs to coordinate energy efficiency programs, identify new energy efficiency projects, obtain energy efficiency rebates from Southern California Edison, and review electricity bills in detail to optimize rates and correct errors. These activities collectively saved over $6.5 million Districts-wide in fiscal year and have saved over $28.3 million since the program inception in Staff Reductions Districts-Wide - There has been a continuing effort to re-evaluate staff positions. Cost savings are realized through elimination of positions or consolidation of staff responsibilities where possible. As attrition has occurred, the Districts have re-allocated remaining staff to areas in the organization most in need of resources, resulting in a much leaner and more efficient organization. This has resulted in a Districts-wide staff reduction of 16% since Refinancing Existing Debt to Take Advantage of Lower Interest Rates - In 1993, the Districts sold bonds in a pre-emptive move to prevent the State from taking more of the Districts' historic share of the property taxes. In 2003, interest rates had dropped to, what were then, all-time historic lows. The Districts took advantage of that opportunity to refinance that existing debt and to sell some additional bonds to fund needed capital improvements. In 20 II, rates had dropped even further and the Districts were able to refinance approximately $138 million of those 2003 bonds, resulting in a collective net present value savings of $10.6 million Districts-wide, In 2013, the Districts were able to refinance the remaining $154 million of the 2003 bonds, at a collective net present value savings of$29 million. Supplementing Revenues with the Sale of Reclaimed Water- Water has always been in short supply in Southern California, with the demand being met with the importation of water from other localities. Unfortunately, the supply of water from other places is not limitless, especially in times of drought. The Districts recognized this fact back in the early 1960's and developed a plan to collect wastewater from residential and commercial sources, treat it through advanced water reclamation plants, and then recycle it. Under this plan, the Districts currently produce 200 million gallons per day of recycled water, using it at over 700 different sites throughout Los Angeles County. In addition to the indirect benefit to the local communities of reducing the amount of imported water that must be purchased, the Districts estimate approximately $5.5 million in revenue through the sale of recycled water in fiscal year 20 I Doc:

11 Board of Directors 6 June 10, 2015 Summary of Required Actions At the June 17, 2015 Board meeting, it will be recommended that the Board of Directors adopt a resolution establishing the appropriations limit on the proceeds of taxes, the budget for fiscal year , and a resolution requesting the tax levy, and authorize appropriations in the sewerage system budget, all as shown on the agenda. GRH:bw Very truly yours, ~a,u i. HJ JL Grace Robinson Hyde Enclosures Doc:

12 SUMMARY OF APPROPRIATiONS LIMIT FOR EACH SANITATiON DISTRICT APPRO. LMT. POPULATION APPRO. LMT. APPRO. LMT APPRO. LMT. DISTRICT EXCLUDING CHANGE CHANGE EXCLUDING MANDATED INCLUDING NUMBER MANDATED COSTS FACTOR FACTOR MANDATED COSTS COSTS MANDATED COSTS I $ 15,458, $ 16, s s 16,550, ,577, ,819, ,171 28,526, ,708, ,582, ,043, ,404, ,547, ,547, , ,938, , ,323, ,665, ,816, , ( , ,462, ,493, ,201 59,242, ,445, , ,161 16, ,729, ,230, ,519, ,508, ,578,968 37,475 1,616, ,645, ,189, ,601 12,500, ,558, ,771,644 97,553 4,869, ,169, ,812,422 12,709, , ,405, I , ,302 46,864, ,321, ,814, ,946 11,134, ,048, ,190,520 8,378 3,198, , , , ,510 11, , , ,036 13, ,840 SBC 20,487, , ,998 21,576,687 scv 17,755, ,713,526 8,300,000 27,013, I N/A** ESTIMATED AD VALOREM TAX REVENUES DISTRICT NUMBER $ 2,732,000 I $ 5,516,000 2 $ 4,180,000 3 $ s 10,066,000 5 $ 1,770,000 8 $ 78,000 9 $ 755, $ 6,311, $ 4, $ 499, $ 3,150, $ 1,086, $ 554, $ 3,811, $ 2,581, $ 816, $ 269, $ 578, $ $ 4,607,000 SBC $ 6.276,000 scv 34 *This column represents the net change resulting from the percent change in population and the percent change in Per Capita Income of 3.82%, and for illustrative purposes is rounded to the fourth significant digit. *"'This District is not subject to an appropriations limit as 1t does not receive any proceeds of taxes. Exhibit No. I

13 COUNTY SANITATION DISTRICT NO.5 OF LOS ANGELES COUNTY SEWERAGE SYSTEM FINAL BUDGET FOR REQUIREMENTS FOR FISCAL YEAR APPROPRIATION: O&M - Joint Administration $ 2,091,000 $ 2,439,000 O&M- Technical Services 8,895,000 8,652,000 O&M - Contract Disposal 499, ,000 O&M - Local District Sewers 2,769,000 2,960,000 O&M - Joint Facilities 26,405,000 27,979,000 Capital - Joint Administration 988, ,000 Capital - Local Capital 525,000 1 '100,000 Capital - Disposal to City of Los Angeles 334, ,000 Capital- Joint Facilities 13,545,000 13,815,000 Bond Repayment 5,486,000 5,484,000 Loan Repayment 3,434,000 3,206,000 Contingency for Emergency 1,543,000 1,535,000 CASH FLOW REQUIREMENT (for period JULY 1 THROUGH DECEMBER 31) 30,461,000 66,514,000 $ 68,857,000 32,240,000 TOTAL BUDGET: $ 96,975,000 $ 101,097,000 ESTIMATED CASH AND REVENUE: Cash on Hand July 1 $ 33,004,000 $ 34,870,000 Transfer from Capital Improvement Fund 2,714,000 1,693,000 Taxes 10,524,000 10,066,000 Grants 21,000 16,000 Service Charge 37,607,000 39,085,000 Loans 2,884,000 3,180,000 Industrial Waste 6,715,000 7,041,000 Interest and Contracts 2,478,000 2,254,000 Transfer from Rate Stabilization Fund 1,028,000 2,892,000 TOTAL RESOURCES: $ 96,975,000 $ 101,097,000 SERVICE CHARGE CALCULATION Number of Sewage Units 266,716 Charge Per Sewage Unit $ $ 267,

14 COUNTY SANITATION DISTRICT NO.5 OF LOS ANGELES COUNTY JULY 1, 2015 THROUGH JUNE 30,2016 PROPOSED CAPITAL PROJECTS JOINT ADMINISTRATION: $ 757,000 JOINT FACILITIES: 1. Trunk Sewer Rehabilitation 2. Trunk Sewer Relief 3. Pumping Plant Improvements 4. Field Office Upgrades 5. Treatment Plant Operations 6. Tunnel Project 7. Westlake Farms Composting Facility $ 4,410,000 1,385,000 1,795,000 30,000 4,521,000 1,522, ,000 $ 13,815,000 LOCAL: 1. Madison Street Trunk Extension Repair 2. Benson Avenue Extension Trunk Rehab 3. Lomita Trunk Sewer System Rehab Phase I 700, , ,000 $ 1,100,000 DISPOSAL TO CITY OF LOS ANGELES: $ 485,000 TOTAL PROPOSED CAPITAL PROJECTS: $16,157,000

15 COUNTY SANITATION DISTRICT NO.5 OF LOS ANGELES COUNTY JULY 1, 2015 THROUGH JUNE 30,2016 Rate Stabilization Fund Beginning Balance Interest Expenses Ending Balance Fiscal Year $ 36,456, ,000 (2,892,000) $ 33,815,000