SCV-A APRIL 18, 2016 DOCUMENT NUMBER:

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1 Notice and Agenda ADJOURNED REGULAR MEETING BOARD OF DIRECTORS SANTA CLARITA VALLEY SANITATION DISTRICT To be held at the SANTA CLARITA CITY HALL CITY COUNCIL CHAMBERS Valencia Boulevard, Santa Clarita, California MONDAY April 18, 2016 At 6:00 P.M. Governing Body Director Alternate SANTA CLARITA KELLAR BOYDSTON SANTA CLARITA WESTE BOYDSTON LOS ANGELES COUNTY SOLIS ANTONOVICH (Chairperson) 1. Approve Minutes of Adjourned Regular Meeting Held March 23, Approve Estimated March 2016 Expenses in Total Amount of $2,699, Summary: Local District expenses represent costs incurred for operations, maintenance, and capital projects that are the sole responsibility of the individual District. The District s share of allocated expenses represent their proportionate share of expenses made by District No. 2, the administrative District, on behalf of the individual districts that participate in either the Joint Administration Agreement or the Joint Outfall Agreement. These Agreements provide for the management of the operations, maintenance, and capital costs associated with all of the shared facilities along with the methodology for determining the proportionate costs for each participating district. Local District Expenses: Operations & Maintenance (O & M) $1,556, Capital 512, Santa Clarita Valley Sanitation District s Share of Allocated Expenses for O & M and Capital: Joint Administration 191, Technical Support 438, Total Expenses $2,699, Re: Affordable Clean Water Alliance v. Santa Clarita Valley Sanitation District, Los Angeles County Superior Court Case No. BS Summary: Conference with legal counsel existing litigation Affordable Clean Water Alliance v. Santa Clarita Valley Sanitation District, Los Angeles Superior Court Case No. BS , pursuant to California Government Code Section (d)(1) - one case. The Chief Engineer and General Manager and District Counsel will discuss this matter in closed session. 4. Order Executed Contract No with Hayward Baker Inc., for Construction of Valencia Water Reclamation Plant Retaining Wall Extension in Amount of Approximately $6,685,250 Summary: Surety bonds executed by Fidelity and Deposit Company of Maryland, for faithful performance and payment, both covering 100 percent of the contract amount, dated March 31, 2016, were filed with the Secretary to the Board and found to be sufficient. 5. Authorize Issuance of Purchase Order to Universal Filtration and Pumping Solutions in Amount of $94, for Purchase of EMS Ram Pump at Valencia Water Reclamation Plant (WRP) Summary: Filter presses are used to dewater digested sludge at the Valencia WRP. Three filter press feed pumps are used to convey the digested sludge from the digesters to the filter press. Due to reliability issues one of the three filter press feed pumps, which has been in service over 30 years, was replaced in November 2015 with a new EMS Ram pump on a trial basis. The new EMS Ram pump has been in operation for about 6 months and has performed reliably. Therefore, it is recommended that the new EMS Ram pump be purchased. 6. Re: Service Charge Report for Fiscal Year (a) Hold Public Hearing on Service Charge Report (b) Adopt Service Charge Report Summary: A letter describing the required Board actions together with a copy of the Service Charge Report and the preliminary budget accompany the agenda. In this District, the current service charge SCV-A APRIL 18, 2016 DOCUMENT NUMBER:

2 ADJOURNED REGULAR MEETING 6. Contd. SANTA CLARITA VALLEY SANITATION DISTRICT OF LOS ANGELES COUNTY rate per single-family home (SFH) is $23.92 per month ($287 per year). The rate for fiscal year , as previously adopted by the Board of Directors, is $25.58 per month ($307 per year), an increase of $1.66 per month per SFH. Owners of multiple dwelling units and commercial properties are charged in proportion to their use compared to a SFH. The industrial wastewater surcharge rates for fiscal year , as previously adopted by the Board, will increase proportionally. 7. Introduce An Ordinance Prescribing Fees for the Privilege of Connecting Any Parcel or Industrial Operation within the Boundaries of Santa Clarita Valley Sanitation District of Los Angeles County Directly or Indirectly to the Sewerage System, or for Increasing the Strength and/or Quantity of Wastewater Attributable to a Connected Parcel or Industrial Operation within the District, and Providing for the Collection of Those Charges and Waive Reading of Said Ordinance in its Entirety Summary: The existing ordinance provides that local agencies that discharge industrial wastewater, including flows from dewatering projects, must pay full connection fees and can only spread payment of those charges over a maximum period of six years. It further limits local agencies from demonstrating reduced flows without first making a significant collateral deposit. These restrictions impose an undue hardship on local agencies, especially given the extremely low risk of potential default. The proposed changes to the ordinance would extend the payment period for local agencies to twenty years and would eliminate the need for them to deposit collateral. The ordinance would also expand the definition of temporary projects to more accurately reflect the types of projects that may be accepted on a temporary basis. Adjourn to Monday, May 2, 2016, 10:00 a.m., at the Santa Clarita City Hall, Valencia Boulevard, Santa Clarita, CA 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. SCV-A APRIL 18, 2016

3 COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY 1955 Workman Mill Road, Whittier, CA Mailing Address: P.O. Box 4998, Whittier, CA Te lephone: (562) , FAX: (562) GRAC E ROB INSON HYDE Chief Engineer and General Manager April II, Board of Directors Santa Clarita Valley Sanitation District of Los Ange les County Directors: Wastewater Revenue Programs The agenda for the Apri I 18, meeting of the Board of Directors of Santa Clarita Valley Sanitation District contains an item regarding a public hearing on the Service Charge Report. This action is needed for the continued collection of service charges on the property tax roll for residential, commercial and sma ll industri al dischargers. The current service charge rate is $23.92 per month ($287 per year) per single-family home (SFI-1). The rate for fiscal year , as previously adopted by the Board of Di rectors, is $25.58 per month ($3 07 per year), an increase of $1.66 per month per SFH. The industrial wastewater surcharge rates, as adopted by the Board, will also increase proportionally. On March 23, 2016, a Service Charge Report was filed with the District Clerk regarding the continued collection on the property tax roll. The public hearing must be conducted before a quorum of the Board for the purpose of public discussion ofthe Service Charge Repo1t. The Board set the date, time and location of the public hearing for April 18, 2016 at 6:00 p.m. in the Santa Clarita City Ha ll, City Council Chambers, Valencia Boulevard, Santa Clarita, CA Notice of the public hearing was published twice in newspapers of general circulation within the District. Public testimony will be accepted at the hearing and all written comments must be received at or by this time. After all public input has been received by the Board, the public hearing will be closed. Follmving the public hearing, the Board wi II consider ado ption of the Service Charge Rep011. Enclosed with thi s letter are copies of the March 16, 2016 letter explaining the basis for the service charge rate, the Service Charge Rep011, and the preliminary budget. GRH :ew Enclosures Very truly yours,!h,i{u R. ~l0 Grace Robinson Hyde DOC ft Recycled Paper ~.,

4 COUNTY SANITATION DISTFiiCTS OF LOS ANGELES COUNTY 195':.> Workman Mill Rood, Whit!lcr, CA M";Hnn Addeo"' ~0. Bm 1998, wh;n;e,, CA GRACE ROBINSON HYDE Telephone: (562) 699-7,111, FAX: (562) Chic/ Engineer a11cl Gcnerol Manager March 16,2016 Board of Directors Santa Clarita Valley Sanitation District of I.os Angeles County Directors: \Vnstcwatcr Revenue Programs For Fiscal Year The agenda for the March 23, 2016 meeting of the Santa Clarita Valley Sanitation District Board of Directors contains an item regarding the sewerage system service charge program. The Board has already adopted the service charge rate for liscal yt ar , as discussed later in this letter. In order to continue to collect tlwsc ehargl's on the next property tax roll the Board must tal<e certain actions. Spccilically, pursuant to state law, the Board must: (I) ordent service charge report be filed with the District Clerk, (2) establish the dale, lime, and place for a public hearing on the report, and (3) direct the publication of the required notices. This leiter provides a review of the adopted rate, the prcl i minary budget for fiscal year , and upcoming significant capital expenditures. The State, pursuant to stale and f(,dcral law, is requiring the District to comply with strict chloride (salt) discharge limits into the Santa Clara River. The original schedule, as promulgated by the Stale, would have required the District to be in Iiiii compliance by May 2015, an impossible task thai would have resulted iu substantial lines being levied. The State was willing to extend the compliance deadline if the District showed good faith cn<nts by adopting rates that would lilily fund a chloride compliance project. llecausc the District will be maximizing the usc of State Revolving Fund (SRF) loans to allow the cost of the chloride compliance project to be spread over a greater number of years, this meant thai the District had to adopt rates that were suf'licicnt to provide for the continued operation and maintenance of existing facilities and to pay for the debt service associated with the loans. Repayment of SRF loans docs not commence until one year aller construction is complete, providing a six year window in which to ramp up the rates. As such, on July 7, 2014, the Board adopted service charge rates for six llscal years ( through ). Prior to service charge rates being adopted two years ago, the District engaged the community in extensive outreach that consisted of: individual notices mailed to every property owner in the District connected to the sewerage system, three full page ads in the Santa Clarita Valley Signal newspaper, six information meetings throughout the Valley, three tours of the Valencia Water Reclamation Plant (WRP), six meetings with business and industry groups, two meetings with town council/advisory committees, aml a public hearing. Based on that action, the compliance deadline was deferred until July I, The service charge rate I(Jr the current liscal year is $23.92 per month per singlc-liunily home ($2X7 per year). The service charge rate lljr , as previously adopted by the Board, is $25.5H per JJHmlh ($307 per year), an increase of $1.67 per month over the rate. Mulii-n mily residential [)()(' )(> 1(>5 77 Recycled Paper \~ ~e,'j

5 Board of Directors -2- March 16,2016 units will pay 60% of the adopted single-family home rate and condominiums will pay 75% of the adopted single-family home rate. Likewise, commercial and industrial dischargers will pay in proportion to their usc of the regional wastewater management system compared to a single-family home. Dischargers with verified low water usage (particularly seniors and retirees) may also qualify for a reduced charge. Prior to setting rates in July 2014, the District applied for and received a $2.5 million Proposition 84 grant for the Saugus Water Reclamation Plant (WRP) ultraviolet (UV) Disinfection Facilities. District staff subsequently obtained an additional $5 million Proposition 84 grant for the Valencia WRP UV Disinfection Facilities. Staff is also evaluating oppo1tunities to secure funding from Proposition 1 (Water Quality, Supply, and Infrastructure Improvement Act of 2014), including participation in workshops and meeting with State staff to determine eligibility and disbursement mechanisms. Significant CaQital Expenditures Although the chloride compliance project will dominate the capital budget over the next several years, there are other projects the District must undertake to ensure the continued cost-effective operation of the treatment system. This includes the construction of a retaining wall along the edge of the Valencia WRP to prevent further erosion by the Santa Clara River and to help stabilize the prope1ty from ground movement. For FY 20 I 6-1 7, $7.5 mi Ilion has been budgeted toward the design and construction of this retaining wall. Additional capital expenditures include $1.8 for completion of the improvements to the Valencia WRP process air system and $1.2 million for upgrades to the Valencia WRP power distribution system. Enclosed for your review is the preliminary budget for fiscal year I 7 and a list of capital projects that impact the budget. The budget provides a comparison with the current budget and a breakdown of the items included in the budget. In preparing the budget, it is projected that the general revenue sources available to the District for meeting expenses during the coming fiscal year include cash on hand, capital improvement fund monies, a pro rata share of the ad valorem (property) taxes, grants, state low-interest loans, an internal loan from the capital improvement fund, industrial wastewater surcharge, interest income, and contract revenue. The supplemental revenue required to meet expenses will be collected through the service charges. The service charge will also support the District's targeted goal tor reserves of six months of O&M and one year of debt service. A final budget will be presented to the Board for consideration in June as part of the overall budgetmy process, adoption of which will authorize budget appropriations. In addition, the Board will be asked at that time to establish by resolution the amount of the tax levy the District will request from the Los Angeles County Tax Collector, as well as the State limit on authorized expending of tax proceeds, administrative actions required of all agencies that receive ad valorem taxes. The budget has been prepared in accordance with the Joint Administration Agreement. This agreement allocates Joint Administration costs 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 the 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. 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 distribtite Joint Administration costs. DOC

6 Board of Directors -3- March 16,2016 Summary of Required Actions State law requires the Board of Directors to order a Service Charge Report (copy attached) to be filed with the District Clerk and to instruct the District Clerk to publish newspaper notices to inform the public of the date, time, and place for a public hearing on the Service Charge Rep011. It is recommended that the public hearing be set for April 18,2016 at 6:00PM in the Santa Clarita City Council Chambers, Valencia Boulevard, Santa Clarita, CA After the public hearing is closed, the Board must adopt the Service Charge Report in order to ensure collection of the service charge through property tax billing. Very truly yours, Grace Robinson Hyde GRH:ew Enclosures DOC

7 SANTA CLARITA VALLEY SANITATION DISTRICT OF LOS ANGELES COUNTY SEWERAGE SYSTEM PRELIMINARY BUDGET FOR REQUIREMENTS FOR FISCAL YEAR APPROPRIATION: O&M - Joint Administration $ 988,000 $ 1,073,000 O&M -Technical Services 3,151,000 3,354,000 O&M - Local District Sewers 646, ,000 O&M- Treatment Facilities 16,823,000 17,247,000 Capital - Joint Administration 247,000 87,000 Capital - Local Capital 2,810,000 10,950,000 Capital- Chloride Compliance 8,650,000 16,460,000 Bond Repayment 3,321,000 3,318,000 Loan Repayment 3,282,000 3,282,000 Capital Improvement Fund Loan Repayment 736, ,000 Contingency for Emergency 1,000,000 1,000,000 $ 41,654,000 $ 58,162,000 CASH FLOW REQUIREMENT (for period JULY 1 THROUGH DECEMBER 31) 16,768,000 25,444,000 TOTAL BUDGET: $ 58,422,000 $ 83,606,000 ESTIMATED CASH AND REVENUE: Cash on Hand July 1 $ 16,812,000 $ 17,768,000 Transfer from Capital Improvement Fund 4,792,000 4,790,000 Taxes 6,276,000 6,402,000 Grants 979,000 Service Charge 26,648,000 29,244,000 Loan - From Slate Revolving Fund (SRF) 8,546,000 Loan- From Capital Improvement Fund (CIF) 5,000,000 Industrial Waste 453, ,000 Interest and Contracts 1,960,000 2,122,000 Transfer from Rate Stabilization Fund 1,481,000 8,286,000 TOTAL RESOURCES: $ 58,422,000 $ 83,606,000 SERVICE CHARGE CALCULATION Number of Sewage Units 92,849 Charge Per Sewage Unit $ $ 95,

8 SANTA CLARITA VALLEY SANITATION DISTRICT OF LOS ANGELES COUNTY JULY 1, 2016 THROUGH JUNE 30, 2017 PROPOSED CAPITAL PROJECTS JOINT ADMINISTRATION: $ 87,000 LOCAL: 1. Valencia WRP Retaining Wall $ 7,500, Valencia WRP North Process Air System Improvements 1,800, Valencia WRP Power Distribution System Modifications 1,200, Saugus WRP Mixed liquor Emulsion Polymer Station 150, Miscellaneous Capital Projects 300,000 $ 10,950,000 CHLORIDE COMPLIANCE PROJECT: 1. Advanced Treatment Facilities $ 11,900, Valencia WRP UV Disinfection 2,900, Saugus WRP UV Disinfection 1,300, Legal and Engineering Support 360,000 TOTAL PROPOSED CAPITAL PROJECTS: $ 16,460,000 $ 27,497,000

9 SANTA CLARITA VALLEY SANITATION DISTRICT OF LOS ANGELES COUNTY JULY 1, 2016 THROUGH JUNE 30,2017 Rate Stabilization Fund Beginning Balance Interest Expenses Ending Balance Fiscal Year $ 18,456, ,000 (8,286,000) $ 10,285,000

10 SANTA CLARITA VALLEY SANITATION DISTRICT SERVICE CHARGE REPORT FOR FISCAL YEAR INTRODUCTION Santa Clarita Valley Sanitation District of Los Angeles County encompasses a portion of the city of Santa Clarita and unincorporated Los Angeles County. Santa Clarita Valley Sanitation District provides wastewater management services for the area described above. The District is responsible for the operation and maintenance of the Saugus and Valencia Water Reclamation Plants and the large trunk sewers which convey wastewater to these facilities. These services arc essential to protect the public health of the people served by the system. Santa Clarita Valley Sanitation District must provide the revenue required to operate and maintain its facilities. The general revenue sources currently available to Santa Clarita Valley Sanitation District include cash on hand, capital improvement fund monies, a pro rata share of the ad valorem (property) taxes, grants, state low-interest loans, an internal loan from the capital improvement fund, industrial wastewater surcharge, interest income, and contract revenue. For fiscal year , the proposed expenditures exceed these revenue sources and necessitate a service charge to supplement tl10 other revenue sources. The service charge will also supp01t the District's targeted goal for reserves of six months ofo&m and one year of debt service. PROPOSED SYSTEM DESCRIPTION The required supplemental revenue under the Service Charge Ordinance will be allocated among classes of developed parcels of real property on the basis of usc of the sewerage system. The revenue derived from the service charge will be used for operation and maintenance and capital costs. All industrial dischargers in Santa Clarita Valley Sanitation District discharging more than 1.0 million gallons per year are required to file a wastewater surcharge statement as prescribed in the Wastewater Ordinance to pay their appropriate share of the costs based on their use of the sewerage system. All other users of the sewerage system, except for contractnal and local government users, will pay service charges. The basic term used to define the service charge is a sewage unit. A sewage unit represents the average daily quantity of sewage flow and strength from a single-family home measured in terms of flow, chemical oxygen demand, and suspended solids. The number of sewage units (SU) per unit of measure shall be determined by the following formula: where: A B c FLOWsfh The proportion of the total operation and maintenance and capital costs required for conveyance, treatment, and disposal of wastewater for the fiscal year which is attributable to flow; The proportion of the total operation and maintenance and capital costs required for conveyance, treatment, and disposal of wastewater for the fiscal year which is attributable to COD; The proportion of the total operation and maintenance and capital costs required for conveyance, treatment, and disposal of wastewater for the fiscal year which is attributable to suspended solids; Average flow of wastewater fl om a single-fiunily home in gallons per day; DOC

11 COOsfh SSsfh FLOWavg CODavg SSavg Average loading of COD in the wastewater fi om a single-family home in pounds per day; Average loading of suspended solids in the wastewater from a single-family home in pounds per day; Estimated flow of wastewater which will enter the sewerage system from a user in gallons per day; Estimated loading of COD which will enter the sewerage system from a user in pounds per day; Estimated loading of suspended solids which will enter the sewerage system from a user in pounds per day. For fiscal year , the propmtions of the total operation and maintenance and capital costs attributable to flow, chemical oxygen demand, and suspended solids have been assigned the following values: A B c = = = The service charge for each sewage unit is determined by dividing the total required supplemental revenue by the total number of sewage units in the District. The service charge for each parcel is determined by multiplying the service charge for each sewage unit by the number of sewage units attributable to the parcel, which in turn, is determined by the class of real property and the sewage unit formula and the flow, COD and SS loadings from Table I. which shows the corresponding value for each class of real property in Santa Clarita Valley Sanitation District. Based upon presently anticipated sources of funds, the service charge rate forliscal year is $307 per sewage unit. Parcels with significantly lower water usage may be eligible for a reduced rate pursuant to the terms of the Master Service Charge Ordinance of Santa Clarita Valley Sanitation District of Los Angeles County. DESCRIPTION OF PARCELS RECEIVING SERVICES AND IDENTIFICATION OF AMOUNT OF CHARGE FOR EACH PARCEL All parcels of real property within the I 7 Tax Rate Areas as shown in Table 2 are receiving or benefiting from the services and facilities of Santa Clarita Valley Sanitation District. Additionally, the parcels listed in Table 3, which do not fall within the Tax Rate Areas shown in Table 2, are receiving or benefiting from the services and facilities Santa Clarita Valley Sanitation District. Said parcels arc more particularly described in maps prepared in accordance with Section 327, Revenue and Taxation Code, which are on tile in the office of the County Assessor, which maps arc hereby incorporated herein by reference. All commercial and institutional parcels assessed a service charge based on the Los Angeles County Assessor's current tax roll shall be charged on the basis of not less than one ( 1.0) sewage unit. No charge shall be imposed on the owner or owners of any parcels as to which the fair market value of improvements is less than $1,000 as determined on the basis of the Assessor's current tax roll. This assumption is predicated on the fact that this type of parcel would be a vacant piece of land; however, should subsequent evaluation reveal that the property is not vacant, then an appropriate service charge would be levied. DOC 364H273 2

12 TABLE 1 LOADINGS FOR EACH CLASS OF LAND USE SUSPENDED FLOW COD SOLIDS DESCRIPTION UNIT OF (Gallons (Pounds (Pounds MEASURE Jler Da~} 11er Da~) 11er Da~l RESIDENTIAL Single FamHy Home Dwell"lng un 1t Condominiums Dwelling Unit Multi-Unit Residential Dwelling Unit Mobile Home Parks No. of Spaces COMMERCIAL Hotel/Motel/Rooming House Room Store 1000 ft' Supermarket 1000 ft' Shopping Center 1000 ft' Regional Mall 1000 ft' Office Building 1000 It' Medical, Dental, Veterinary 1000 ft' Clinic or Building Restaurant 1000 ft' 1, Indoor Theatre 1000 ft' Car Wash Tunnel - No Recycling 1000 It' 3, Tunnel - Recycling 1000 It' 2, Wand 1000 It' Bank, Credit Union 1000 ft' Service Shop, Vehicle 1000 ft' Maintenance & Repair Shop Animal Kennels 1000 ft' Gas Station 1000 ft' Auto Sales 1000 ft' Wholesale Outlet 1000 It' Nursery/Greenhouse 1000 ft' Manufacturing 1000 ft' Light Manufacturing 1000 ft., LumberYard 1000 ft' Warehousing 1000 tt' Open Storage 1000 It' Drive-in Theatre 1000 ft' Night Club 1000 ft' Bowling/Skating 1000 It' Club& Lodge Halls 1000 It' Auditorium, Amusement 1000 fl' Golf Course and Park 1000 fl' (Structures and Improvements) Campground, Marina, Sites, Slips, or Recreational Vehicle Park Spaces Convalescent Home Bed Horse Stables Stalls Laundromat 1000 ft' 3, DOC

13 SUSPENDED FLOW COD SOLIDS DESCRIPTION UNIT OF (Gallons (Pounds (Pounds MEASURE ger Da~l ger Da~l 11er Da~) COMMERCIAL Mortuary, Funeral Home 1000 ft' Health Spa, Gymnasium With Showers 1000 tt' Without Showers 1000 tt' Convention Center, Average Daily Fairground, Racetrack, Attendance Sports Stadium/Arena INSTITUTIONAL College/University Student Private School 1000 tt' Library, Museum 1000 tt' Post Office (Local) 1000 tt' Post Office (Regional) 1000 tt' Church 1000 It' DOC

14 TABLE 2 TAX RATE AREAS IN SANTA CLARITA VALLEY SANITATION DISTRICT

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18 TABLE 3 PARCEL NUMBERS SERVED BY SANTA CLARITA VALLEY SANITATION DISTRICT

19 AN ORDINANCE PRESCRIBING FEES FOR THE PRIVILEGE OF CONNECTING ANY PARCEL OR INDUSTRIAL OPERATION WITHIN THE BOUNDARIES OF SANTA CLARITA VALLEY SANITATION DISTRICT OF LOS ANGELES COUNTY DIRECTLY OR INDIRECTLY TO THE SEWERAGE SYSTEM, OR FOR INCREASING THE STRENGTH AND/OR QUANTITY OF WASTEWATER ATTRIBUTABLE TO A CONNECTED PARCEL OR INDUSTRIAL OPERATION WITHIN THE DISTRICT, AND PROVIDING FOR THE COLLECTION OF THOSE CHARGES. THE BOARD OF DIRECTORS OF SANTA CLARITA VALLEY SANITATION DISTRICT OF LOS ANGELES COUNTY ORDAINS AS FOLLOWS: TABLE OF CONTENTS PART I -- GENERAL PROVISIONS Section 1.01 Short Title Section 1.02 Purpose Section 1.03 Authority Section 1.04 Additional Revenue Section 1.05 Administration Section 1.06 Validity Section 1.07 Supersession Section 1.08 Effective Date PART II -- DEFINITIONS Section 2.01 Added Burden Section 2.02 Baseline Capacity Units Section 2.03 Board of Directors Section 2.04 Capacity Unit Section 2.05 Chief Engineer Section 2.06 COD or Chemical Oxygen Demand Section 2.07 Discharger Section 2.08 District Section 2.09 Domestic Wastewater Section 2.10 Facility Section 2.11 Industrial Operation Section 2.12 Industrial Wastewater Doc

20 Section 2.13 Local Agency Section 2.14 Local Governmental Facility Section 2.15 Master Service Charge Ordinance Section 2.16 Next Anticipated Configuration Section 2.17 Notice of Charges Section 2.18 Parcel Section 2.19 Person Section 2.20 Prime Interest Rate Section 2.21 Service of Notice of Charges Section 2.22 Sewerage System Section 2.23 Suspended Solids Section 2.24 Temporary Projects Section 2.25 Unit of Usage Section 2.26 User Category Section 2.27 Wastewater Section 2.28 Wastewater Ordinance PART III -- PART IV -- FEES Section 3.01 Imposition of Connection Fees Section 3.02 Calculation of the Connection Fee Section 3.03 Determination of the Connection Fee Rate Section 3.04 Calculation of the Number of Capacity Units Section 3.05 Determination of the Number of Baseline Capacity Units Section 3.06 Election to Demonstrate Section 3.07 Temporary Projects Section 3.08 Industrial Operation Relocation Credits COLLECTION AND PAYMENT Section 4.01 Collection and Payment of Connection Fee Section 4.02 Penalty and Interest Charges for Delinquent Connection Fee Payment Section 4.03 Fee for Returned Checks Section 4.04 Manner of Payment PART V -- FUNDS Section 5.01 Disposition of Funds 2

21 Section 5.02 Capital Improvement Fund Section 5.03 Authorization to Loan Funds PART I - GENERAL PROVISIONS SECTION SHORT TITLE This Ordinance will be known as the Master Connection Fee Ordinance of Santa Clarita Valley Sanitation District of Los Angeles County. SECTION PURPOSE The purpose of this Ordinance is to impose fees for the privilege of connecting facilities to the sewerage system or for the privilege of increasing the strength or quantity of wastewater discharged from connected facilities, and to provide for the collection of those fees. Revenue derived under this Ordinance will be used for expansion of the District s capital facilities and to fund loans as provided for in this Ordinance. SECTION AUTHORITY The District is empowered to fix fees or charges for the privilege of connecting directly or indirectly to the sewerage system and to prescribe, revise, and collect fees, tolls, rates, rentals, or other charges for services and facilities furnished by the District pursuant to California Health & Safety Code section SECTION ADDITIONAL REVENUE The revenue derived under this Ordinance will be in addition to all revenue otherwise collected by or on behalf of the District including, but not limited, to ad valorem taxes, federal and state grants and loans, bond revenue, contract revenue, investment income, annexation fees, service charges, and wastewater treatment surcharges imposed under the Wastewater Ordinance. SECTION ADMINISTRATION The Chief Engineer shall administer, implement, and enforce the provisions of this Ordinance. SECTION VALIDITY If any court holds that any part, section, subsection, paragraph, sentence, clause or phrase of this Ordinance is held invalid or unconstitutional for any reason, that decision will not affect the validity or constitutionality of the remainder of this Ordinance. The Board of Directors declares that it would have adopted each provision of this Ordinance irrespective of the validity of any other provision. SECTION 1.07 SUPERSESSION This Ordinance supersedes the Master Connection Fee Ordinance of Santa Clarita Valley Sanitation District of Los Angeles County adopted on June 13, 2007, with respect to any rights, duties, or privileges arising after the effective date of this Ordinance. 3

22 SECTION EFFECTIVE DATE This Ordinance will become effective 30 days after its adoption. PART II DEFINITIONS This Ordinance will be construed according to the following definitions: SECTION ADDED BURDEN An added burden means the actual or anticipated number of capacity units attributable to a parcel or industrial operation in excess of its baseline capacity units. SECTION 2.02 BASELINE CAPACITY UNITS Baseline capacity units means the number of capacity units that the District attributes to a parcel or industrial operation in accordance with Section SECTION BOARD OF DIRECTORS Board of Directors means the Board of Directors of Santa Clarita Valley Sanitation District of Los Angeles County. SECTION CAPACITY UNIT Capacity unit means the estimated burden in terms of capacity that a typical single-family residential dwelling unit places on the sewerage system based on flow, chemical oxygen demand, and suspended solids. SECTION CHIEF ENGINEER Chief Engineer means the Chief Engineer and General Manager of Santa Clarita Valley Sanitation District of Los Angeles County or his/her designee. SECTION COD OR CHEMICAL OXYGEN DEMAND COD or chemical oxygen demand means the measure of chemically-decomposable material in wastewater as represented by the oxygen utilized as determined by the procedures specified in Section 414(A) of the Wastewater Ordinance. SECTION 2.07 DISCHARGER Discharger means any person responsible for the payment of a connection fee for an industrial operation. SECTION DISTRICT District means Santa Clarita Valley Sanitation District of Los Angeles County. 4

23 SECTION DOMESTIC WASTEWATER Domestic wastewater means the water-carried wastes produced from non-industrial activities and that result from normal living processes, irrespective of where these wastes are discharged to the sewerage system. SECTION 2.10 FACILITY Facility means an improvement on or to be located on a parcel that discharges or will discharge wastewater directly or indirectly to the sewerage system. SECTION 2.11 INDUSTRIAL OPERATION Industrial operation means any activity that generates industrial wastewater, whether located on one or multiple parcels, that is discharged or will be discharged directly or indirectly to the sewerage system, and that has obtained or is required to obtain an industrial wastewater discharge permit as provided in the Wastewater Ordinance. SECTION INDUSTRIAL WASTEWATER Industrial wastewater means all of the community s liquid-carried wastes, excluding domestic wastewater, rainwater, groundwater, stormwater, and drainage of contaminated and uncontaminated water, directly or indirectly discharged to the District s sewerage system. Industrial wastewater may include wastewater from any industrial operation, including manufacturing, processing, producing, institutional, commercial, agricultural, or other operations containing significant quantities of wastes of nonhuman origin. All liquid wastes hauled by truck, rail, or another means for disposal to the sewer will constitute industrial wastewater regardless of the original source of the wastes. Hauled domestic wastewater is included in the category of industrial wastewater. Wastewater discharges from the following sources, when accepted into the sewerage system by the Chief Engineer, will constitute industrial wastewater under this Ordinance: rainwater, groundwater, stormwater, or contaminated and uncontaminated water. SECTION LOCAL AGENCY Local agency means any governmental entity that is not a state, federal, or international governmental entity, or subsidiary or agency thereof. Local agency includes the County of Los Angeles; a city, whether general law or chartered; a school district; a municipal corporation; a district; or any board, commission, or agency thereof. SECTION LOCAL GOVERNMENTAL FACILITY Local governmental facility means any facility that is: a) owned by a local agency; b) located on a parcel that is entirely within the District; c) not required to pay wastewater treatment surcharges under the Wastewater Ordinance; d) used solely for governmental as opposed to proprietary functions; and e) dedicated to uses that directly benefit the public in general as opposed to a single class or classes of individuals. 5

24 SECTION MASTER SERVICE CHARGE ORDINANCE Master Service Charge Ordinance means the Master Service Charge Ordinance of Santa Clarita Valley Sanitation District of Los Angeles County adopted June 26, 2013, and as thereafter amended. SECTION NEXT ANTICIPATED CONFIGURATION Next anticipated configuration means: (1) The District s existing sewers and pumping facilities, and (2) The District s treatment facilities, including all associated effluent management facilities, that will exist following its next planned expansion. SECTION NOTICE OF CHARGES Notice of charges means a written statement by the Chief Engineer setting forth the amount of the connection fee, including any penalties, interest, and additional charges, due pursuant to this Ordinance. SECTION PARCEL Parcel means any area of land contained within a single legal description that is shown on maps prepared and filed by the Assessor s Office of the county in which the land is located. SECTION PERSON Person means any individual, sole proprietorship, partnership, limited liability company, limited liability partnership, corporation, committee, association, local agency, public entity (including the State of California and the United States of America and all agencies thereof), or any other organization or group of persons, public or private. SECTION PRIME INTEREST RATE Prime interest rate means the base rate on corporate loans posted by at least 75% of the nation's thirty largest banks as published in The Wall Street Journal or, if not reported in that newspaper, as reported in another source selected by the Chief Engineer. SECTION 2.21 SERVICE OF NOTICE OF CHARGES Service of notice of charges means delivery of a notice of charges in person or by first class or certified mail addressed to the address last known to the Chief Engineer. Service of notice of charges made by mail will be complete at the time of deposit, postage prepaid, in a facility regularly serviced by the U.S. Postal Service. SECTION SEWERAGE SYSTEM Sewerage system means the whole or any part of the network of wastewater collection, conveyance, treatment, and disposal facilities that are either owned in whole or in part by the District or used by the District pursuant to contract. 6

25 SECTION SUSPENDED SOLIDS Suspended solids means the insoluble solid matter suspended in wastewater under conditions normally found in the sewer that is separable by laboratory filtration in accordance with the procedures specified in Section 414(A) of the Wastewater Ordinance. SECTION 2.24 TEMPORARY PROJECT Temporary project means a project that will not place an added burden on the sewerage system for more than five years. Temporary projects may include groundwater clean-up projects, water clean-up technology demonstration projects, construction dewatering, periodic maintenance of water storage and conveyance facilities, well development, hydrotesting, water and sewer line cleaning and slope stabilization projects SECTION UNIT OF USAGE Unit of usage means the basic unit of measure (e.g., dwelling unit, square footage) that quantifies the degree of use of a particular facility located on or to be located on a parcel. The square footage of a facility will be based upon the gross exterior dimensions of the structure. SECTION USER CATEGORY User category means the specific classification of a facility that characterizes its use (e.g., single-family residential dwelling unit, restaurant). SECTION WASTEWATER Wastewater means the community s liquid-carried wastes including all its constituents and residues discharged directly or indirectly to the District s sewerage system. Wastewater includes domestic and industrial wastewater but does not include rainwater, groundwater, stormwater, or drainage or other water unless otherwise provided for in Section 2.12 of this Ordinance. SECTION WASTEWATER ORDINANCE Wastewater Ordinance means the Wastewater Ordinance adopted by the County Sanitation Districts of Los Angeles County effective on April 1, 1972, and as amended effective on July 1, 1975, July 1, 1980, July 1, 1983, November 1, 1989, and July 1, 1998 and as thereafter amended. PART III FEES SECTION IMPOSITION OF CONNECTION FEES Any person imposing an added burden on the sewerage system shall pay a connection fee to the District, except for the following: (1) An existing industrial operation placing an added burden of 25% or less; or 7

26 (2) A local governmental facility. SECTION 3.02 CALCULATION OF THE CONNECTION FEE The connection fee shall equal the product of the rate determined in accordance with Section 3.03 and the added burden placed on the sewerage system. SECTION DETERMINATION OF THE CONNECTION FEE RATE The Chief Engineer shall determine the capital improvement component, the cash reserve component, and the operational cost component, and then calculate the connection fee rate all as described below. (1) Capital Improvement Component: The Chief Engineer shall determine the total capital cost required to construct an incremental expansion of the sewerage system of the next anticipated configuration for the fiscal year in which the connection fee rate is to become effective. In addition, the Chief Engineer shall determine the number of capacity units that can be accommodated by the incremental expansion, and then divide the former value by the latter value. The resulting value will be known as the capital improvement component. (2) Cash Reserve Component: The Chief Engineer shall also determine the amount of the cash reserves that will be available on July 1 for the fiscal year in which the connection fee rate is to become effective. This amount will be divided by the total number of existing sewage units in the District as determined in accordance with the Master Service Charge Ordinance. The resulting value will be converted into dollars per capacity unit on the basis that one sewage unit is equivalent to one capacity unit and will be known as the cash reserve component. (3) Operational Cost Component: The service charge rate adopted by the Board of Directors pursuant to the Master Service Charge Ordinance for the fiscal year in which the connection fee rate is to become effective will be converted into dollars per capacity unit on the basis that one sewage unit is equivalent to one capacity unit. The resulting value will be known as the operational cost component. (4) Calculation of Connection Fee Rate: (a) (b) Standard Connection Fee Rate: For persons imposing an added burden on the sewerage system who are not subject to the requirement of the Wastewater Ordinance to pay wastewater treatment surcharges, the connection fee rate will equal to the sum of the capital improvement component, the cash reserve component, and the operational cost component. The Board of Directors will from time to time adopt this connection fee rate. Rate for Surcharge Payers: For persons imposing an added burden on the sewerage system who are subject to the requirement of the Wastewater Ordinance to pay wastewater treatment surcharges, the connection fee rate will equal the sum of the capital improvement component and the cash reserve component. 8