AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avilal Beach, CA. 93424 Meeting Room and Telephone (805),595-26641 FAX (805) 595-7623 e-mail: avilacsd@gmail.com REGULAR BOARD MEETING 1PM Tuesday, January 14th, 2025 TELECONFERENCE AND/OR BLECTRONICALL. Office- - 100 San] Luis Street, Avilal Beach STAFF AND PUBLIC MAY PARTICIPATE INTHIS MEETING INI PERSON. ATTHE ADDRESS ABOVEC OR, VIA ZOOM MEETING: itps/usu2weh.zom.1s411787511 Meeting ID: 4111787571 Password: No Password Required. BY PHONE: 1-669-900-9128 In accordance with Government Code Section 54953(b), this agenda will be posted at the above teleconference location and this location will be accessible to the public. Director Najarian will be attending the meeting via Zoom from: 1441 Florida Ave, Modesto, CA 1. 2. 3. CALL TOORDER: 1:00 P.M. OATH OF OFFICE: Directors Kennett and Berry ROLL CALL: Board Members: Pete Kelley, President John Janowicz, Vice President Kristin Berry, Director Howie Kennett, Director Ara Najarian, Director 4. PUBLIC COMMENT Members ofthej public wishing to comment or bring forward anyi items concerning District operations which do not appear on today's agenda may address the Board now. Please state your name and address before addressing the Board andl limit presentations to 3 minutes. State law does not allow Board action on: items not appearing on the: agenda. 5. INFORMATION AND DISCUSSION ITEMS County Reports 1. SLO County Sheriff Department 2. CalFire/County Fire Department Reports on Attended Conferences, Meetings, and General Communications of District Interest 5. CONSENT ITEMS: These items are approved with one motion. Directors may briefly discuss any item, or may: pull any item, which is then added to the business agenda. A. Minutes ofNovember 12th, 2024, Regular Board Meeting B. Monthly Financial Review for November and December 2024 C. General Manager and District Engineer Report D. Water and Wastewater Operations Reports for November and December 2024 6. 7. 8. DISCUSSION OF PULLED CONSENT ITEMS PUBLIC COMMENT ON CLOSED SESSION ITEM At this time, items pulled for discussion from the Consent Agenda, ifa any, will bel heard. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATEDLITIGATION- Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2). Number of cases: One. REPORT ON CLOSED SESSION/ANNOUNCEMENT OF ACTION, IF ANY, TAKEN IN CLOSED 9. 10. SESSION BUSINESS ITEMS: Items where Board action is called for. A. Public Hearing Relating to Solid Waste Franchise Rate Increase (Actions Required: Open Public Hearing: Receive Comments and lor Protests; Close Public Hearing; Board Consideration of Resolution 2025-01 Adopting Solid Waste Rates for Avila Beach CSD) B. Receive and Review December 12, 2024, Water Tank Inspection Report (Information Item, Provide Direction to Staff asl Needed) C. Board Committee Appointments for 2025 (Action Required: Establish Committee Assignments for calendar year 2025) D. Board Meeting Schedule for 2025 Direction to Staff) (Action Required: Review Proposed Board Meeting Schedule for calendar year 2025 and Provide 11. COMMUNICATIONS CORRESPONDENCE activities or suggest items for future agendas. Att this time, any Director, or Staff, may ask questions for clarification, make any announcements, or report briefly on any 12. ADJOURN The next Regular Board meeting is scheduled for Tuesday, February 11th, 2025, at 1:00 P.M. Any writing or document pertaining to an opens session item on this agenda whichi is distributed to a majority of thel Board after the posting of this agenda will be available for public inspection at the time the subject writing or document is distributed. The writing or document will be available for public review int thel District Administration Office, 100 Sanl Luis Street, Avila Beach, CA during normal business! hours. Consistent with the Americans with] Disabilities Act and California Government Code Section 54954.21 requests for disability related: modification or accommodation, including auxiliary aids or services may ber madel bya aj person with a disability who requires thei modification or accommodation inc order toj participate att the above referençed public meeting by contacting thel District at 805-595-2664. MINUTES OF BOARD OF DIRECTORS MEETING Avila Beach Community Services District Tuesday, November 12th, 2024 1:00 P.M. 1. CALLTOORDER President Kelley called the meeting oft the Board of Directors ofthe Avila Beach Community Services District, to order at 1:05 P.M. on the above date, in the Avila Beach Community Services District Building, 100 San Luis Street, Avila Beach, California. ROLLCALL Board Members Present 2. Pete Kelley Howie Kennett John Janowicz Kristin Berry None Board Members Present via Zoom: Ara Najarian Board Members Absent: Staff Present: Operations: Legal Counsel: 3. 4. Brad Hagemann, General Manager & District Engineer Kristi Dibbern, Office Manager Shawn Powell, ChiefPlant Operator Craig Parton from Price, Postal, & Parma via Zoom PUBLIC COMMENTS INFORMATION AND DISCUSSIONITEMS A. County Reports Sheriff's Report: Sheriff MacDonald reported 23 calls for service last month. Nine preventive patrol stops, seven general disturbances, and one suspicious circumstance were: investigated. Two vandalisms took place in Pirate's Call Fire: ChiefLee: reported 52 calls for service, 28 weremedicalyrelated. Onei rescue occurred during thei month ofOctober. A: man was hiking near Pirates Cove. Hel hiked down from thej parking lot but could not get back up the steep terrain. The Fire Safe Council grant applications are due December 15t, 2024. The work continues to go on near the Lighthouse, Squire Canyon, and Pismo area. ChiefLee: reminded us to change the batteries in our smoke detectors and carbon monoxide detectors when time the time changes ini the Spring and Fall. He also reported since Cove and four enforcement stops were conducted in Avila. the wind has died down in the early morning the Ventura firel has been contained. DISCUSSION OF PULLED CONSENTITEMS: None 5. 6.CONSENT ITEMS with ai roll call vote 5-0. President Kelley made ai motion to approve the Consent Items. It was seconded by Director Janowicz and passed AYES: John Janowicz Kristin Berry Howie Kennett Ara Najarian Pete Kelley None None NOES: ABSENT: 7. 8. PUBLIC COMMENT ON CLOSED SESSION. ITEM NO COMMENTS. CLOSED SESSION The Board convened to closed session at 1:13 PM to discuss the following items: A. CONFERENCE WITHI LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2). Number of REPORT ON CLOSED SESSION/ANNOUNCEMENT OF ACTION, IF ANY,TAKEN IN cases: One. CLOSED SESSION 9. The Board returned to regular session at 1:28 PM. No reportable action was taken by thel Board of] Directors. 10. BUSINESS ITEMS: A. Discuss and Consider the New Solid Waste Rate Adjustment Methodology Report prepared by R3; thel Prop 2181 Hearing Notice and Set the Prop 2181 Rate Hearing for. January 14, 2025. GMI Hagemann summarized the staff report and Mr. Garth Shultz, from R3 Consulting lead a Power Point Presentation to the Board and Public. Utilizing the new Rate Adjustment Methodology, R3 recommended a 4.6% rate adjustment for 2025. After some discussion, Director Kennett made a motion to approve the Solid Waste Rate Adjustment Methodology Report, the Draft Prop 218 Hearing Notice and directed staff to schedule thel Prop 218 Hearing for. January 14t,2025. The motion was seconded by Director Berry and passed with aroll call vote 5-0. AYES: Howie Kennett Kristin Berry John Janowicz Ara Najarian Pete! Kelley None None NOES: ABSENT: B. Discuss and Consider an Engineering Services Proposal from Wallace Group for Preparing a Recycled Water Strategy and a Draft and Final Title 22 Recycled Water Engineering Report for Submission to the State Water Resources Control Board. GM Hagemann summarized the Staff Report and recommended the Board approve the Engineering Services Agreement with Wallace Group for an amount not to exceed $30,000. Director Najarian made the motion to approve thel Engineering Services Agreement. Director Berry seconded the motion, andi itj passed with ai roll call vote 5-0. AYES: Ara Najarian Kristin Berry Howie Kennett John Janowicz Pete Kelley None None NOES: ABSENT: Director Najarian left the meeting at 2:35 PM. I Election of Officers and Board Committee Appointments for 2025. Director. Janowicz nominated. Director Kelley for President. Director Berry seconded the motion, and itj passed with a roll call vote 4-0. AYES: John Janowicz Kristin Berry Howie Kennett Pete Kelley None Ara Najarian NOES: ABSENT: President Kelley nominated Director John Janowicz for Vice President. Director Berry seconded the nomination, and it passed with ai roll call vote 4-0. AYES: John. Janowicz Kristin Berry Howie Kennett Pete Kelley None NOES: ABSENT: Ara Najarian The Board deferred Committee assignments until the. January 14, 2025, Regular meeting. ADJOURNMENT: The meeting was adjourned at approximately 2:42 PM. NEXT MEETING: Tuesday, January 14th, 2025, at 1:00PM. These minutes are: not official nor aj permanent part of the records until approved by the Board ofI Directors at their next meeting. Respectfully submitted, Brad Hagemann, PE General Manager AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA 93424 MEMORANDUM TO: FROM: DATE: Board ofDirectors Brad Hagemann, General Manager January 14th, 2025 SUBJECT: Monthly Financial Review for November & December Recommendation: Receive and file report. Overall Monthly Summary During the month ofNovember, the District deposited $164,826.78 and incurred $166,386.57 in expenses (cash basis). Among the regular expenses the District paid $74,357.87 forLopez water and $8,065.31 for consulting services in preparation for the 2023/24 audit. Additionally, the District incurred $19,540 in expenses repairing the MBR unit. December deposits totaled Water and sewer revenue for the month of November was $67,996.54 and $68,858.97 for December. County Taxes revenue for November and December combined totaled $205,457.49. Detailed financial reports including the Balance Sheets, for November and December monthly Profit and Loss reports, and the monthly Checks by Fund reports are provided as an attachment $184,058.50, and the District incurred $81,482.61 in expenses (cash basis). to this report. Utility Service Billing The District billed approximately $67,089.05 in water and sewer service charges in November. Customer Rate Assistance reduced billing charges to the District in the amount of$ $802.49. For thei month ofDecember, thel District billed $67,944.69 for water and sewer charges. Customer Rate. Assistance reduced billing charges to the District in the amount of $839.28. 11:24 AM 12/04/24 Accrual Basis Avila Beach Community Services District Balance Sheet As of November 30, 2024 Nov 30, 24 ASSETS Current Assets Checking/Savings 1000 - Cash Summary 1008 - Petty Cash 1010 Pacific Premier Checking 1015 - Five Star Bank Checking 1017 - Five Star Bank MM 1050 - LAIF Total 1000 - Cash Summary Total Checking/Savings Accounts Receivable 1200 - *Accounts Receivable Total Accounts Receivable Other Current Assets 1250 Receivables 1255 Interest Receivable 1270 . Taxes Receivable 1280 Water & Sewer Billings 1282 - Other 2 El Dorado Billings 1281 - Other 1E EI Dorado Billings 1280 - Water & Sewer Billings - Other Total 1280 - Water & Sewer Billings Total 1250 . Receivables 1400 - Prepaid Summary 1410 Prepaid Insurance Total 1400 : Prepaid Summary Total Other Current Assets Total Current Assets Fixed Assets 1670 . Vehicles - Admin 1671 - 2023 Ford F150 Cost 1672 - 2023 Ford F150 Acc Depr 1670 - Vehicles - Admin - Other Total 1670 Vehicles - Admin 65.72 146,263.42 705,352.88 211,065.65 4,202,736.28 5,265,483.95 5,265,483.95 234,422.64 234,422.64 31,062.36 30,262.00 -19,861.05 -4,154.42 115,023.35 91,007.88 152,332.24 -3,217.10 -3,217.10 149,115.14 5,649,021.73 53,960.62 -10,792.12 286.40 43,454.90 Page 1 11:24 AM 12/04/24 Accrual Basis Avila Beach Community Services District Balance Sheet As of November 30, 2024 Nov 30, 24 1600 Fixed Assets & Acc. Depr. 1605 - Office Equipment 1606 Copier Samsung 2012 1609 - Office Equipment Accum Depr Total 1605 Office Equipment 1610 - Fixed Asset -Office & Admin. 1612 - Office Furniture cost 1614- Office Furniture Accum Dep. Total 1610 - Fixed Asset -Office & Admin. 1620 - Fixed Assets - Sanitary 1622- Land 1626 Collection Assets 1627 - Collection Assets Cost 1628 - Collect Assets Accum Depr Total 1626 - Collection Assets 1630 Disposal Equipment 1631 Disposal Equip Cost 1632 - Disposal Equip Accum Depr Total 1630 - Disposal Equipment 1634- Other Equipment 1634a - Other Equipment Cost Total 1634 - Other Equipment 1635 . Treatment Plant 1636 - Treatment Plant Original 1637 - Treatment Plant Addition 1638 - Treatment Plant Accum Dep Total 1635 - Treatment Plant 1642 Treatment Equipment 1643 Treatment Equip Cost 1644 - Treatment Equip Accum Depr Total 1642 - Treatment Equipment Total 1620 - Fixed Assets - Sanitary 8,233.58 -22,339.42 -14,105.84 4,526.21 -4,526.21 0.00 60,334.10 1,517,267.58 -593,752.02 923,515.56 611,174.66 -376,478.88 234,695.78 6,973.40 6,973.40 105,000.00 2,049,098.30 1,740,709.80 413,388.50 1,087,410.54 -787,343.49 300,067.05 1,938,974.39 Page 2 11:24 AM 12/04/24 Accrual Basis Avila Beach Community Services District Balance Sheet As of November 30, 2024 Nov 30, 24 21,136.28 -21,136.28 1650 - Fixed Assets - Water 1652 Equipment 1653 Equipment Cost 1654 - Equipment Accum Depr Total 1652 Equipment 1656 - Distribuation Assets 1657 - Distribuation Assets Cost 1658 - Dist Assets Accum Depr Total 1656 - Distribuation Assets Total 1650 . Fixed Assets - Water 1680 Structures - Fixed Asset 1681 - Structures GFAAG- Sani & FA 1682- : Gen/Fire Accum Dep Total 1680 - Structures - Fixed Asset 1690 - Construction in Progress Total 1600 - Fixed Assets & Acc. Depr. 0.00 1,270,572.25 -786,988.91 483,583.34 483,583.34 82,207.29 -54,626.21 27,581.08 4,475,390.83 6,911,423.80 6,954,878.70 82,628.00 82,628.00 12,686,528.43 Total Fixed Assets Other Assets Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2100 Accounts Payable Total Accounts Payable Credit Cards 1800 - Deferred Outflows of Resources 193,478.86 193,478.86 62,720.75 27,657.30 719.35 -86,602.45 4,494.95 4,494.95 2140 - Five Star MC Control x0557 2141 - FS MC BH x8624 2142 - FS MC SP x6340 2143 - FS MC KD x3018 2140 - Five Star MC Control x0557 - Other Total 2140 - Five Star MC Control x0557 Total Credit Cards Page 3 11:24 AM 12/04/24 Accrual Basis Avila Beach Community Services District Balance Sheet As of November 30, 2024 Nov 30, 24 Other Current Liabilities 2200 - Payroll Liabilities 2201 - Accrued Payroll 2240 - Health Insurance 2241 - Employee Total 2240 - Health Insurance 2250 . PERS Liability 2260 * Vacation Payable 2262 - Sick Pay Accrued Total 2200 - Payroll Liabilities 2300 Deposits Held 2303 - Water Deposits Held Total 2300 - Deposits Held Total Other Current Liabilities Total Current Liabilities Long Term Liabilities 2400 Net Pension Liability 2450 - U.S. Bank Loan WWTP 2500 - Deferred Inflows of Resources 2999 - Unbalanced Classes Total Long Term Liabilities Total Liabilities Equity 2,766.15 9,240.00 9,240.00 1,195.70 5,441.96 2,818.66 21,462.47 7,640.00 7,640.00 29,102.47 227,076.28 149,160.00 2,497,679.03 22,819.00 -133,455.52 2,536,202.51 2,763,278.79 -17,611.15 7,619,323.04 2,195,322.62 126,215.13 9,923,249.64 12,686,528.43 3000 . Opening Bal Equity 3900 - Retained Earnings 3999 Prior Period Adjustment FY23 Net Income Total Equity TOTAL LIABILITIES & EQUITY Page 4 11:26 AM 12/04/24 Accrual Basis Avila Beach Community Services District Profit & Loss November 2024 Nov 24 Ordinary Income/Expense income 4000 . Income Summary 4010 - Operating Revenue 4030 - County Taxes 4600 - Interestincome Total 4000 - Income Summary 67,966.54 96,076.32 783.92 164,826.78 164,826.78 164,826.78 Total Income Gross Profit Expense 5100 - Merchant Credit Card Fees 5110 - Amex 5120 - Chase Paymentech 5140 - Invoice Cloud 10.00 138.89 439.41 588.30 Total 5100 - Merchant Credit Card Fees 5200 - Payroll Expenses 5210 Gross Wages 5211 - Regular Pay 5212 - Holiday Pay 5213 - Overtime Pay 5214 - Sick Pay 5216 - Vacation Pay Total 5210 - Gross Wages 5230 - Payroll Taxes 5240 - Health & Medical Exp. 5242 - Health Ins/Other Total 5240 - Health & Medical Exp. 5250 - PERS Company Pd Expense 5255 - PERS Co Pd Shawn 5256 - PERS Co Pd Kristi 12,271.58 1,546.20 0.00 93.60 1,047.00 14,958.38 215.17 7,037.57 7,037.57 793.10 366.17 23.13 1,182.40 5250 - PERS Company Pd Expense - Ot... Total 5250 - PERS Company Pd Expense Page 1 11:26 AM 12/04/24 Accrual Basis Avila Beach Community Services District Profit & Loss November 2024 Nov 24 117.28 23,510.80 10,714.06 879.99 2,301.00 2,301.00 386.99 206.11 593.10 802.49 26.12 178.36 249.00 15,744.12 4,926.10 6,560.00 5,760.00 517.11 762.62 8,165.00 11,071.06 19,998.68 1,298.70 373.33 2,869.46 6,314.00 404.00 117.57 1,200.00 750.48 210.02 5280 - Payroll Administration & Misc. Total 5200 - Payroll Expenses 6000 - Administrative Overheads 6102 * Accounting 6120 - Dues & Subscriptions 6135 - Legal 6137 - Lopez Lake ESA Litigation Total 6135 - Legal 6140 - Office Supplies & Postage 6142 Postage & Shipping 6143 - Supplies, Office 6150 - Rate Assistance 6160 Training 6167 - Uniforms 6170 - Website Total 6140 - Office Supplies & Postage Total 6000 - Administrative Overheads 6500 - Operating Expenses 6505 - Contract Labor O&M 6506 - Contract Labor GM 6507 - Contract Labor Civil Engineer 6518 - Equipment Expense 6520 - Equipment Repair & Maint. 6522 . Equip. Rep. & Maint-Avila & HD 6524 Eqip. Rep. & Maint. Avila Only 6520 - Equipment Repair & Maint. - Other Total 6520 - Equipment Repair & Maint. 6525 - Fat Oil & Grease (FOG) 6528 - Gas & Oil 6535 - Insurance PIL 6540 - Lab Tests 6542 - Maintenance 6550 - Operating Supplies 6555 - Permits & Fees 6575 - Small Tools 6585 Telephone /Internet Page 2 11:26 AM 12/04/24 Accrual Basis Avila Beach Community Services District Profit & Loss November 2024 Nov 24 8,148.33 94.50 59,542.28 74,357.87 74,357.87 173,743.37 -8,916.59 6590 - Utilities 6591 . Yard Maintenance Total 6500 - Operating Expenses 6800 - Water 6802 - Lopez Total 6800 - Water Total Expense Net Ordinary Income Other Income/Expense Other Expense 8200 - Non-Operating Expenses 8230 - Capital Purchases in Prog Sani 8241 . WW-5 Misc. Projects Total 8230 - Capital Purchases in Prog Sani 8270 - Capital Purchases in Prog Water 8280 - W-21 Water Valve Rep Total 8270 - Capital Purchases in Prog Wat... Total 8200 - Non-Operating Expenses 11,600.00 11,600.00 1,674.75 1,674.75 13,274.75 13,274.75 -13,274.75 -22,191.34 Total Other Expense Net Other Income Net Income Page 3 00 1:00 PM 01/07/25 Accrual Basis Avila Beach Community Services District Balance Sheet As of December 31, 2024 Dec 31, 24 ASSETS Current Assets Checking/Savings 1000 - Cash Summary 1005. - Customer Cash 1008 - Petty Cash 1010 - Pacific Premier Checking 1015 . Five Star Bank Checking 1017 - Five Star Bank MM 1050 - LAIF Total 1000 - Cash Summary Total Checking/Savings Accounts Receivable 1200 *Accounts Receivable Total Accounts Receivable Other Current Assets 1250 - Receivables 1255 - Interest Receivable 1270 Taxes Receivable 1280 Water & Sewer Billings 1282 Other 2 El Dorado Billings 1281 - Other 1 El Dorado Billings 1280 . Water & Sewer Billings Other Total 1280 - Water & Sewer Billings Total 1250 - Receivables 1400 Prepaid Summary 1410 - Prepaid Insurance Total 1400 - Prepaid Summary Total Other Current Assets Total Current Assets Fixed Assets 1670 Vehicles - Admin 1671 . 2023 Ford F150 Cost 1672 2023 Ford F150 Acc Depr 1670 . Vehicles Admin - Other Total 1670 - Vehicles - Admin 1600 - Fixed Assets & Acc. Depr. 78.47 65.72 146,263.42 898,668.40 211,065.65 4,202,736.28 5,458,877.94 5,458,877.94 122,109.64 122,109.64 31,062.36 30,262.00 19,861.05 -4,154.42 120,987.46 96,971.99 158,296.35 -6,086.56 -6,086.56 152,209.79 5,733,197.37 53,960.62 -10,792.12 286.40 43,454.90 Page 1 1:00 PM 01/07/25 Accrual Basis Avila Beach Community Services District Balance Sheet As of December 31, 2024 Dec 31, 24 8,233.58 -22,339.42 -14,105.84 4,526.21 4,526.21 1605 Office Equipment 1606 - Copier Samsung 2012 1609 - Office Equipment Accum Depr Total 1605 - Office Equipment 1610 Fixed Asset -Office & Admin. 1612. Office Furniture cost 1614 Office Furniture Accum Dep. Total 1610 - Fixed Asset -Office & Admin. 1620 - Fixed Assets Sanitary 1622 . Land 1626 - Collection Assets 1627 . Collection Assets Cost 1628 - Collect Assets Accum Depr Total 1626 - Collection Assets 1630 Disposal Equipment 1631 Disposal Equip Cost 1632 * Disposal Equip Accum Depr Total 1630 Disposal Equipment 1634 . Other Equipment 1634a * Other Equipment Cost Total 1634 Other Equipment 1635 Treatment Plant 1636 Treatment Plant Original 1637 Treatment Plant Addition 1638 Treatment Plant Accum Dep Total 1635 Treatment Plant 1642 - Treatment Equipment 1643 Treatment Equip Cost 1644 . Treatment Equip Accum Depr Total 1642 Treatment Equipment Total 1620 Fixed Assets Sanitary 1650 Fixed Assets Water 1652 Equipment 1653 Equipment Cost 1654 Equipment Accum Depr 0.00 60,334.10 1,517,267.58 -593,752.02 923,515.56 611,174.66 -376,478.88 234,695.78 6,973.40 6,973.40 105,000.00 2,049,098.30 -1,740,709.80 413,388.50 1,087,410.54 -787,343.49 300,067.05 1,938,974.39 21,136.28 -21,136.28 Page 2 1:00F PM 01/07/25 Accrual Basis Avila Beach Community Services District Balance Sheet As of December 31, 2024 Dec 31,24 0.00 Total 1652 Equipment 1656 - Distribuation Assets 1657 Distribuation Assets Cost 1658 Dist Assets Accum Depr Total 1656 - Distribuation Assets Total 1650 * Fixed Assets Water 1680 - Structures - Fixed Asset 1681 - Structures GFAAG - Sani & FA 1682 - Gen/Fire Accum Dep Total 1680 - Structures - Fixed Asset 1690 - Construction in Progress Total 1600 - Fixed Assets & Acc. Depr. 1,270,572.25 -786,988.91 483,583.34 483,583.34 82,207.29 -54,626.21 27,581.08 4,475,390.83 6,911,423.80 6,954,878.70 82,628.00 82,628.00 12,770,704.07 Total Fixed Assets Other. Assets Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2100 . Accounts Payable Total Accounts Payable Credit Cards 1800- Deferred Outflows of Resources 193,478.86 193,478.86 64,807.08 28,974.70 719.35 -91,097.40 3,403.73 3,403.73 2,766.15 2140 - Five Star MC Control x0557 2141 - FS MC BH x8624 2142. - FS MC SP x6340 2143 - FS MC KD x3018 2140 - Five Star MC Control x0557- - Other Total 2140 - Five Star MC Control x0557 Total Credit Cards Other Current Liabilities 2200 Payroll Liabilities 2201 - Accrued Payroll 2240 - Health Insurance Page 3 1:00 PM 01/07/25 Accrual Basis Avila Beach Community Services District Balance Sheet As of December 31, 2024 Dec 31,24 10,080.00 10,080.00 1,338.18 5,441.96 2,818.66 22,444.95 7,640.00 7,640.00 30,084.95 226,967.54 149,160.00 2,497,679.03 22,819.00 -133,455.52 2,536,202.51 2,763,170.05 -17,611.15 7,619,323.04 2,195,322.62 210,499.51 10,007,534.02 12,770,704.07 2241 * Employee Total 2240 Health Insurance 2250 * PERS Liability 2260 - Vacation Payable 2262 - Sick Pay Accrued Total 2200 Payroll Liabilities 2300 Deposits Held 2303 . Water Deposits Held Total 2300 Deposits Held Total Other Current Liabilities Total Current Liabilities Long Term Liabilities 2400 - Net Pension Liability 2450 U.S. Bank Loan' WWTP 2500 - Deferred Inflows of Resources 2999 - Unbalanced Classes Total Long Term Liabilities Total Liabilities Equity 3000 Opening Bal Equity 3900 Retained Earnings 3999 Prior Period Adjustment FY 23 Net Income Total Equity TOTAL LIABILITIES & EQUITY Page 4 12:54 PM 01/07/25 Accrual Basis Avila Beach Community Services District Profit & Loss December 2024 Dec 24 Ordinary incomelExpense Income 4000 Income Summary 4010 - Operating Revenue 4012 - Solid Waste Franchise Fee 4020 - Contract Services-Ambulance 4030 : County Taxes Total 4000 - Income Summary 68,858.97 4,587.11 1,231.25 109,381.17 184,058.50 184,058.50 184,058.50 Total Income Gross Profit Expense 5100 Merchant Credit Card Fees 5110 - Amex 5120 - Chase Paymentech 5140 - Invoice Cloud Total 5100 - Merchant Credit Card Fees 5200 Payroll Expenses 5210 Gross Wages 5211 - Regular Pay 5212 - Holiday Pay 5213 - Overtime Pay 5214 . Sick Pay 5216 - Vacation Pay Total 5210 - Gross Wages 5230 - Payroll Taxes 5240 - Health & Medical Exp. 5242 - Health Ins/Other Total 5240 - Health & Medical Exp. 5250 - PERS Company Pd Expense 5255 PERS Co Pd Shawn 5256 - PERS Co Pd Kristi 12.00 334.57 458.29 804.86 13,651.72 803.02 0.00 264.56 1,451.46 16,170.76 231.68 12,643.20 12,643.20 853.28 399.78 22.31 1,275.37 5250 - PERS Company Pd Expense -Ot... Total 5250 * PERS Company Pd Expense Page1 12:54 PM 01/07/25 Accrual Basis Avila Beach Community Services District Profit & Loss December 2024 Dec 24 143.28 30,464.29 2,600.00 87.99 2,979.50 2,979.50 251.10 251.10 839.28 178.36 249.00 7,185.23 2,006.90 990.00 3,040.00 3,040.00 3,637.45 4,892.73 385.46 5,278.19 425.80 1,196.66 2,869.46 7,246.00 404.00 594.95 11,171.15 3,280.00 490.00 357.10 4,189.50 5280 Payroll Administration & Misc. Total 5200 - Payroll Expenses 6000 - Administrative Overheads 6102 - Accounting 6120 Dues & Subscriptions 6135 Legal 6137 - Lopez Lake ESA Litigation Total 6135 - Legal 6140 Office Supplies & Postage 6143 Supplies, Office Total 6140 - Office Supplies & Postage 6150 Rate Assistance 6167 Uniforms 6170 - Website Total 6000 - Administrative Overheads 6500 - Operating Expenses 6503 Chemicals 6504 - Admin Contract Services 6506 . Contract Labor GM 6507 Contract Labor Civil Engineer 6518 * Equipment Expense 6520 - Equipment Repair & Maint. 6522 Equip. Rep. & Maint-Avila & HD 6524 - Eqip. Rep. & Maint. Avila Only Total 6520 * Equipment Repair & Maint. 6528 - Gas & Oil 6530 - Generator Maintenance 6535 - Insurance PIL 6540 - Lab Tests 6542 - Maintenance 6550 - Operating Supplies 6555 - Permits & Fees 6565 - Regulatory Compliance 6567 Repairs, Building 6572 - Security 6580 - Solids Handling Page 2 12:54 PM 01/07/25 Accrual Basis Avila Beach Community Services District Profit & Loss December 2024 Dec 24 249.96 10,446.97 47.25 60,961.34 358.40 0.00 99,774.12 84,284.38 84,284.38 6585 Telephone /Internet 6590 - Utilities 6591 - Yard Maintenance Total 6500 - Operating Expenses 6800 - Water 6999 * Ask My Accountant Total Expense Net Ordinary Income Net Income Page 3 8 1003080888 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: FROM: DATE: Board ofDirectors Brad Hagemann, General January 14, 2025 PAN Managér SUBJECT: General Manager Report Zone 3Technical Advisory Committee (TAC)and Advisory Committee The Zone 3 Technical Advisory Committee last met on Wednesday, January 8, 2025. The agenda packet for the December 11, 2024, and January 8, 2025, TAC meetings are provided as attachments to this report. As of this writing (January 9, 2025), the Lopez reservoir is at 91% of capacity with 45,362 AF in storage. The weather pundits and forecasters are anticipating a "La Nina" cycle this year which normally (but not always) results in lower that average annual rainfall. With the previous two years of above average annual rainfall our local and state water supplies are in good shape for at least the next several years. Avila Valley Regional Wastewater Alternatives Analysis On December 19, 2024, District staff attended a meeting to discuss the initial finding and status of the Avila Valley Regional Wastewater Alternative Analysis. The consultants working on the project include Water Systems Consulting and Wallace Group. The consultants wanted to verify and/or receive input on their current and projected wastewater flows; wastewater conveyance, treatment, and recycled water alternatives. San Miguelito Mutual Water Company staff anticipate a draft report will be available in mid-February for review and comment. The Agenda for the December 19, 2024 meeting is provided as an attachment to this Report. CONTROLAND ZONE 3Lopez Project San Luis Obispo County Flood Control and' Water Conservation District ZONE 3 TECHNICAL ADVISORY COMMITTEE Agenda 9:00 -11:00 am Meeting ID: 261220685070 Passcode: pjuWGG Or call in (audio only) +1831-296-4487.4200209008 United States, Salinas Phone Conference ID: 420020900# Wednesday December 11, 2024 Join on your computer, mobile app or room device 1. Announcements All David 2. General Operations and Water Report Summary Notes - November Monthly Operations Report - November Lopez Storage Projections - November 3. Current Reservoir Conditions David David David All 4. 5-Year CIP 5. Project Updates 6.F Future Agenda items Attachments: A. Meeting Minutes - November B. Lopez Monthly Operations Report - November C. Lopez Storage Projections Chart- - November D.F Project Updates Next Meeting Date: January 8, 2025 ZONE3 TECHNICAL ADVISORY COMMITTEE WEDNESDAY, November 13, 2024 (9:00-11:00 AM) Via Microsoft Teams SUMMARY NOTES Meeting Time: 9:00am-9:34am Attendees via Microsoft Teams: Jim Garing (Grover Beach), Greg Ray (Grover Beach), Shane Taylor (Arroyo Grande), Nicole Valentine (Arroyo Grande), Michael Steele (NCMA), Peter Brown (OCSD), Daniel Heimel (Confluence Engineering Solutions), David Spiegel, Jeromy Caldera, Harold Wright, Kristina Borges, Laura Holder, and Darla Budge (PW Dept). Announcements David Spiegel (PW): We sent out a press release about the change in our disinfectant. CalCoast News picked up the story and made it more alarmist than we: intended in our press release. Faith from Water Quality informed us that the state does not require this press release, and we only need to notify dialysis centers. Moving forward, do we want to continue issuing press releases, or should wej just notify the dialysis centers? Peter Brown suggests that next time, we simply advise the dialysis centers and then let the Zone 3 agencies decide if they want to put out messaging. Jim Garing suggests that this might be an opportunity to educate the public about David Spiegel: The Lopez elevation gauge on our site is having problems. The bubbler is Daniel Heimel asks, "Do you have an update on the State water shutdown?" Jeromy Caldera responds, "They extended it until next week." David Spiegel: Our plan is to continue keeping state water off. the changes. malfunctioning and will be replaced. 2. General Operations and Water Report David Spiegel (PW): October Meeting Summary Notes (Attachment A) No comments. David Spiegel (PW): Reviews the October Monthly Operations Report (Attachment B) Daniel Heimel asks, "Will the district be able to flush the pipeline from the state water David Spiegel: It will happen next week when it comes back online. Is still need to David Spiegel: There will also be a shutdown ofthe pipeline on Monday, November 18, 2024, due to another small relocation oft the Lopez line at the roundabout project. There was a storm drain utility conflict. This will be an overnight shutdown. David Spiegel: Everything is tracking well. turnout to the treatment plant?" discuss options with Jeromy Caldera. David Spiegel (PW): Lopez Storage Projections (October) (Attachment C) Lopez Storage Projection chart: Desiree is working on ai memo on how we developed this graph. 3. Current Reservoir Conditions David Spiegel (PW) reports the following data: WTP: 4.081 MGD SWP: 0.00 MGD Capacity: 92% Downstream releases: 3.02 MGD, decreasing to 3.0 MGD on November 13, 2024 Current elevation: 518.28 feet, 45,608. AF 4. Financial - 1st Quarter Report (Attachment D) Summary ofoverall expended budget: 19% Routine 0&M: Expended budget is 27% Non-Routine 0&M: Expended budget is <1% Capital Outlay: Expended budget is <1% they be discussed at the December meeting? Nicole Valentine (Administrative Services Director, Arroyo Grande): I thought we would be discussing the proposed CIP projects, but I see they are not on the agenda. Will David Spiegel responds, "Yes, they will bei inl December. Wel had a setback due to David Spiege!: I would also like to introduce Kristina Borges, who is the new Zone 3 one oft the operators who works on the budget being out." Accountant. 5. Capital Projects Update (Attachment E) Fire Flow Tank Replacement (No Change) - On Hold Final design plans are complete. and go out to bid. Budget: -$1,400,000 Budget: -$600,000 -$500k in Zone 3 funds; we will need to proceed with the normal budget process Membrane Module Replacement (No Change) - On Hold Two racks have been replaced and are operational. Spillway Assessment and Investigation (No Change) Ground-penetrating radar performed. Concrete cores removed in chute and walls. Remainder ofthe project: $300,000 With DSOD for review. Budget: -$500,000 Geotechnical Testing & Seismic Alternatives Study ofTerminal Reservoir Dam (No Change) Geotechnical Engineering Report complete. o David Spiegel: The factor ofs safety of the terminal reservoir was right at the cutoff point between 1.0 and 1.1. FEMA requires 1.1, and we came in at 1.05. DSOD iss still reviewing, and additional analysis has been requested. I will now jump to Item 8(DWR: Dam Safety Grants). Due to the spillway assessment and geotechnical testing, we have applied for two separate dam safety grants, one for each dam. These grants cover studies and other assessments moving forward. Working on transient monitoring station plans fort the DWR/State water line Cathodic Protection Repair Project crossing. System is working well. Budget: -$449,933 DAF Building Repairs (No Change) Contracted with Quincon/PwS to repair the building. Rafters support safety tether for maintenance of DAF equipment. Budget:-$95,000 Completed Projects: Sludge Bed Curtain Wall Rehab Chemical Tank Replacement Spillway Flipl Bucket Repair (FEMA) Bathymetric Study CO2 Injection System Perimeter Channel Repair (FEMA-covered project) 6.Lopez Stream Gauges There is currently a grant for stream gauges that would cover the cost and maintenance until 2026. The cost for a new: stream gauge is between $30K and $40K, but it would be covered by the grant. We are considering installing gauges upstream oft the reservoir. We have applications for the grant, but ifyou do not feel this is worthwhile, we can still back out. Greg Ray asks, "Would this be supportive oft the lawsuit?" David Spiegel responds, "I think in a way it would be, because of all the data, but itdoes come at a cost. Also, it only captures 10%1 to 20% oft the inflow, whichi is low." 7. Lopez WTP Mobile Home Replacing the old mobile home would cost around $250,000. Fixing the old mobile home seems to be more cost-effective, sO we will move forward with the repairs. 8. DWR Dam Safety Grants This was covered under the Geotechnical Testing in the Project Updates section. Ifyou'd like more information, David Spiegel can email the details to the agencies. 9. Future Agenda Items Next Meeting: Wednesday, December 11, 2024 4454 8388555 e95 3356559 8555556 4565 35358 stetsts EEAE S 5855 22 F5 s8 SZOZ/T/ZT SZOZ/T/IT SZOZ/T/OT SZOZ/T/6 Szoz/T/8 SZOZ/T/L SZOZ/T/9 SZOZ/T/S Szoz/T/t SZOZ/T/E szoz/T/Z SZOZ/T/T zoZ/T/ZT vzoz/t/IT 4zoz/T/OT VZOZ/T/6 vzoz/t/8 VzOZ/T/L vZOZ/T/9 VZOZ/T/S vzoz/T/V VzOZ/T/E VzoZ/T/Z VZOZ/T/T EZOZ/T/ZI EZOZ/T/IT EZOZ/T/OT EZOZ/T/6 EZOZ/T/8 EZOZ/T/L EZOZ/T/9 EZOZ/T/S EZOZ/T/4 EZOZ/T/E EZOZ/T/Z EZOZ/T/T zzoz/T/zT 2ZOZ/T/IT ZzoZ/T/OT ZZOZ/T/6 ZZOZ/T/8 ZZOZ/T/L zzoz/T/9 (Jv) eSeJois CONTROL ZONE 3 Lopez Project San Luis Obispo County Flood Control and' Water Conservation District TO: FROM: DATE: Zone 3 Technical Advisory Committee David Spiegel, PE, Utilities Engineer December 11, 2024 SUBJECT: Zone 3 Projects Update Project Updates: Spillway Flip Bucket Drain Line Repair Budget -$50,000 Bank reinforcement schedule for the gth Fire Flow Tank Replacement (No Change) - On Hold Final Design Plans are complete -$500ki in Zone 3 Funds Budget-$1,400,000 Membrane Module Replacement (No Change) 2 racks more racks have been replaced and are operational Budget -$600,000 Spillway Assessment and nvestigation (No Change) Performed ground penetrating radar Removed concrete cores in chute and walls Remainder of project - minimum of $300,000 Geotechnical Testing & Seismic Alternatives Study of Terminal Reservoir Dam (No Change) With DSOD for Review Budget -$500,000 Geotechnical Engineering Report Complete Cathodic Protection Repair Project (No Change) Working on transient monitoring station plans for DWR/State water line crossing System working well Budget -$449,933 DAF Building Repairs Notice to proceed issued -$95,000 Contracted with Quincon/PWS to repair building Rafters support safety tether for maintenance of DAF equipment TONTROI AND ZONE 3 Lopez Project San Luis Obispo County Flood Control and' Water Conservation District Completed Projects Perimeter Channel Repair Sludge Bed Curtain Wall Rehab Chemical Tank Replacement Spillway Flipbucket Repair (FEMA) Bathymetric Study CO2 Injection System PTDNTEOI ANDN ZONE 3Lopez Project San Luis Obispo County Flood Control and' Water Conservation District ZONE 3 TECHNICAL ADVISORY COMMITTEE Agenda Wednesday January 8, 2025 9:00 - 11:00 am Meeting ID:261220685070 Passcode: pjuWGG Or call in (audio only) #1831-296-4487.4487,4200209008 United States, Salinas Phone Conference ID: 420020900# Join on your computer, mobile app or room device 1.A Announcements All David 2. General Operations and Water Report Summary Notes - December Monthly Operations Report - December Lopez Storage Projections - December 3. Current Reservoir Conditions 4. Zone 3 Boundary Updates -King Ventures Development 5. Project Budget Adjustments -Lopez Terminal Piezo Replacement -UWMP -Boundary Updates 6.F Project Updates 7.D Discuss New Member Appointments 8.F Future Agenda items Kyle David David David David All CIP Project Field Trip Annual Target $750k A. Meeting Minutes - December B. Lopez Monthly Operations Report - December C. Lopez Storage Projections Chart - December D. Project Updates Attachments: Next Meeting Date: February 12, 2025 ZONE3 TECHNICAL ADVISORY COMMITTEE WEDNESDAY, December 11, 2024 (9:00-11:00 AM) Via Microsoft Teams SUMMARY NOTES (Darla Budge) Meeting Time: 9:00am-9:28am Attendees via Microsoft Teams: Jim Garing (Grover Beach), Brandon Shea (Pismo Beach), Vard Ikeda (Agriculture Member), John Wallace (Agriculture Rep), Shane Taylor (Arroyo Grande), Nicole Valentine (Arroyo Grande), Michael Steele (NCMA), Peter Brown (OCSD), Daniel Heimel (Confluence Engineering Solutions), David Spiegel, Jeromy Caldera, Harold Wright, Kristina Borges, Laura Holder, Katie Franco and Darla Budge (PW Dept). LAnnouncements David Spiegel (PW): Lopez Water Treatment Plant has finished the free Chlorine maintenance and the Chloramination system is back online. 2. General Operations and Water Report David Spiegel (PW): November Meeting Summary Notes (Attachment. A) David Spiegel (PW): Reviews thel November Monthly Operations Report (Attachment David Spiegel: Shane Taylor brought it to our attention that the report had an issue, which was discovered to be an excel issue. I can send out an updated report ify you need David Spiegel (PW): Lopez Storage Projections (November) (Attachment C) No comments. B) one. Tracking normal 3. Current Reservoir Conditions David Spiegel (PW) reports the following data: WTP:4.02. MGD SWP: 0.00 MGD Downstream releases: 2.05 MGD Current elevation: 518.25 feet, 45,581 AF Capacity: 92% 4. 5Year CIP Proposed projects 2025/26, David Spiegel (PW) Non-Routine 0&M Item 1: Equipment audit/Replacement Plan - On-Going, no budget Item 2: Fireflow Tank repair/replacement new funding requested Item 3: Membrane Replacements (21 Racks/year) New funding requested Item 4: HCP - Instream Studies of AG Creek New funding Requested Item 5: Cloud Seeding Program on Hold money has been moved, zero balance Capital Outlay Item 6: Unanticipated Equipment Purchases current balance to be rolled forward Item 7: Safety Upgrades New: funding requested due to DAF building repair Item 8: Spillway Physical Investigation balance to be rolled forward Item 9: Spillway Repairs per DSOD-Main Dam TBD budget needed balance to be rolled forward Item 10: Geotechnical Testing & Seismic Alternatives Study for Terminal Dam no new Item 11: WTP Perimeter Security Fencing - Phase II no budget needed will be removed Item 12: Replace Carbon Feed System (Non-auger) New funding requested to replace Item 14: Carbon Dioxide Injection System This has been completed and will be removed from the project list system int the next couple of years Item 13: Upgrade EQ Pump current balance to bei rolled forward Item 15: Dam Intakes #2 & #3 Valve Maintenance TBD Item 16: Mower will be removed asi it has been purchased this year Item17: Cathodic Protection Units 1-3TBD1 New funding requested Item 19: Terminal Dam Piezometer Replacement Project TBD from the list Item18: Membrane Rack Valve Installation All valves need replacement sO new funding Item20: Membrane Rack Piping Replacement new funding requested to replace stainless FY25/26 CIP budget is at the set $750,000 after removing items and rolling forward David Spiege!: Nicole Valentine (Administrative Services Director, Arroyo Grande) sent me a list of questions regarding these projects, and Id did provide her with responses. If Jim Garring: It might be educational to set up a field trip to see the projects. Shane Taylor: Remind everyone how the target amount of $750, 000 came about andi is David Spiege!: It was passed down by the previous Supervising Engineer. The capital outlay projects were: set at about $550,000 but we combined the Non-Routine 0&M with the capital outlay bringing the budget to $750,000 sO that we didn'tcontinually go over requested piping projects. you would like a copy, I can provide one to you. David Spiege!: I agree and will get that set up. there any documentation on how it came about. the budget. Nicole Valentine: In 24/25 there are 13 active projects, that is a substantial amount. We are not adding projects for the 25/26 year. just adding money to the projects. Wouldn'tit be beneficial to target 6 projects for the current year and 7 projects for the 25/26 year? David Spiege!: Needs toj put more thought into this question before giving an answer. 5. Capital Projects Update (Attachment D) Spillway Flip Bucket Drain Line Repair Bank reinforcement schedule for1 the 9th Budget -$50,000 Fire Flow' Tank Replacement (No Change) = On Hold Final design plans are complete. and go out to bid. Budget: -$1,400,000 Budget: -$600,000 o -$500k in Zone 3 funds; we will need to proceed with the normal budget process Membrane Module Replacement (No Change) - On Hold Two racks have been replaced and are operational. Spillway Assessment and Investigation (No Change) Ground-penetrating radar performed waiting on report Concrete cores removed in chute and walls. Remainder of the project: --$300,000 With DSOD for review. Budget: -$500,000. Cathodic Protection Repair Project crossing. The system is working well. Budget: -$449,933 DAF Building Repairs (No Change) Notice to proceed issued Budget: $95,000 Geotechnical Testing & Seismic Alternatives Study ofTerminal Reservoir Dam (No Change) Geotechnical Engineering Report complete. Working on transient monitoring station plans for the DWR/State water line Contracted with Quincon/Pws to repair the building. Rafters support safety tether for maintenance ofl DAF equipment. Completed Projects: Sludge Bed Curtain Wall Rehab Chemical Tank Replacement Spillway Flip Bucket Repair (FEMA) Bathymetric Study CO21 Injection System Perimeter Channel Repair (FEMA-covered project) 6.1 Future Agenda Items Field tripi regarding CIP projects Information regarding the $750,00. Annual target amount Next Meeting: Wednesday, January 08, 2025 EAE6 88EdE 555555 8888898 565556 E45E 8888858 3335556 2 333555 98848 8EE45 3355 88888 888 0 0 szoz/t/zt Szoz/t/IT Szoz/T/OT SZOZ/T/6 SZOZ/1/8 SZOZ/L/L SZOZ/T/9 SZOZ/T/S Szoz/t/v SZOZ/T/E SzOZ/T/Z SZOZ/T/T tzoz/T/ZT ZOZ/T/IT VzOZ/T/OT VZOZ/T/6 VZOZ/T/8 VZOZ/L/L vzoz/T/9 ZOZ/T/S ZOZ/T/V VZOZ/T/E VZOZ/T/Z vzoz/T/T EZOZ/L/ZT EZOZ/T/IT EZOZ/T/OT EZOZ/T/6 EZOZ/T/8 EZOZ/T/L EZOZ/T/9 EZOZ/T/S EZOZ/T/V EZOZ/T/E EZOZ/T/Z EZOZ/T/T 2ZoZ/T/ZT 2Zo2/T/IT ZZOZ/T/OT 2202/T/6 ZzOZ/T/8 ZZOZ/T/L 22O2/T/9 (Jv) a8e1o1s PTDNTROLA ANDI ZONE 3Lopez Project San Luis Obispo County Flood Control and' Water Conservation District TO: FROM: DATE: Zone 3 Technical Advisory Committee David Spiegel, PE, Utilities Engineer December 11, 2024 SUBJECT: Zone 3 Projects Update Project Updates: Fire Flow Tank Replacement (No Change) - On Hold Final Design Plans are complete -$500k in Zone 31 Funds Budget -$1,400,000 Membrane Module Replacement (No Change) 2r racks more racks have been replaced and are operational Budget-$600,000 Spillway Assessment and Investigation (No Change) Waiting for report from GEI Performed ground penetrating radar Removed concrete cores in chute and walls Remainder of project - minimum of $300,000 Geotechnical Testing & Seismic Alternatives Study of Terminal Reservoir Dam (No Change) With DSOD for Review Budget $500,000 Geotechnical Engineering Report Complete Cathodic Protection Repair Project (No Change) Working on transient monitoring station plans for DWR/State water line crossing System working well Budget -$449,933 DAF Building Repairs Notice to proceed issued Contracted with Quincon/PWS to repair building Rafters support safety tether for maintenance of DAF equipment -$95,000 LONTROI AND ZONE 3Lopez Project San Luis Obispo County Flood Control and Water Conservation District Completed Projects Spillway Flip Bucket Drain Line Repair Perimeter Channel Repair Sludge Bed Curtain Wall Rehab Chemical Tank Replacement Spillway Flipbucket Repair (FEMA) Bathymetric Study CO2 Injection System WSC Meeting Agenda Project: Date: Location: Attendees: Avila Valley Region Wastewater Alternatives Analysis Thursday, December 19, 2024 SMMWC ABCSD: Brad Hagemann, Shawn Powell SMMWC: Dwayne Chisam, Ryan Smith Wallce Group: Bryan Childress WSC: Heather Freed, Dylan Wade, Lizzie Wiley, Corrine Watson San Miguelito and Avila Beach CSD Regional Wastewater Consolidation Description: Project Agenda 1. Introductions 2. Project Background 3. Flows: a. ABCSD & Port San Luis Average Daily Flows: Current: 50,000 gpd ii. Buildout: 62,500 gpd b. SMMWC Average Daily Flows: Current: 73,000 gpd . Buildout: 100,000 gpd C. Avila Valley Septic Users Flows: Current: 40,000 gpd 1. 20,000 gpd from Avila Valley MWC 2. 20,000 gpd from commercial residential users on Ontario Road/ Avila Beach Drive ii. Buildout: 55,000 gpd d. Total: ABCSD, Port, SMMWC Current = 124,000 gpd ii. ABCSD, Port, SMMWC Buildout = 162,300 gpd iii. ABCSD, Port, SMMWC Buildout + Septic Conversion = 218,000 gpd Avila Valley Region Wastewater Alternatives Analysis 1 Meeting Agenda WSC 4. Alternatives a. Conveyance b. Treatment - New force main along Avila Beach Drive ii. Opportunities to share with Port San Luis Cloacina M4 with septic conversion ( Cloacina M3 for ABCSD, Port San Luis, and SMMWC buildout flows iii. Potential to sell existing MBR and construct a single treatment train C. Recycled Water 5. Opportunities for additional regional benefits a. Local recycled water supply b. Future for potential indirect potable reuse Other opportunities 6. Considerations a. Contractual b. Financial Operational d. Other Considerations i. Interagency agreements or JPAI for wastewater treatment - Grant opportunities with septic consolidation 7. Next Steps a. Complete alternatives evaluation in early 2025 b. Present recommendations and timeline to the Regional Board in April 2025 Avila Valley Region Wastewater Alternatives Analysis 2 AVILA BEACH COMMUNITY SERVICES DISTRICT ESTABLISHED FEB.1997 SUBJECT: November and December 2024 Operations and Maintenance Report Compliance There were no compliance issues for the months ofl November and December. Themonthly Self-Monitoring Reports and associated data tables and graphs arej provided as an: attachment tot this report. Wastewater Treatment Plant The influent lift station pumps were pulled and removed ofdebris in December. critical spare parts inventory for the new. MBR unit is now in progress. Staff conducted an inventory of critical spare parts for the original plant, and the process of creating a Staff continues to work with Cloacina on final punch list items for the MBR Warranty. Wastewater Collection System Staffhas observed: a significant amount ofinflow andi infiltration (I&I)during: andi immediately following rain events. As noted in previous staff reports, we believe the bulk of the I &Iis due to groundwater infiltrating into the sewer collection system. Our primary concern is the San Miguel Street sewer line. Staffintends to engage the services of an engineering consultant to assist with the evaluation ofthe sewer line and development a project scope to upgrade and/or replace the San Miguel street sewer line. Staffworked with the developer on Colony Drive to oversee the installation oft three new water services Water System and installation of new meters at the existing water services. The water tank was cleaned and inspected by Advanced Technical Services in December. The Lopez Water Treatment Plant has completed its maintenance and the water system has now fully The Water Board conducted its triennial sanitary survey ofthel District's water distribution system. It was successful with no violations, and they willl be updating the District's water supply permit. transitioned back to chloramines. DISCHARGER SELF-MONITORING ORDERI R3-2017-0025 NPDES CA0047830 WDID3400101001 Month: NOVEMBER 2024 California Regional Water Quality Control Board, Central Coast Region Monthly report duel last day off following month Annual report due January 30 Daily Flow (MGD) Avila Beach CSD Wastewater Treatment Facility Effluent and Influent Monitoring Weekly Weekly Weekly Weekly Monthly Effluent Effluent Influent Influent Effluent TSS (24HC) (24HC) (24HC) (24HC) (Grab) <5.0 <5.0 <5.0 <5.0 <5.0 <5.0 <5.0 Effluent Monitoring Weekly Weekly Weekly Weekly 0.15 0,40 0,15 0.35 0.15 0.26 0.40 Effluent Monitoring Biweekly Biweekly Dally Date 11/7/24 11/14/24 11/21/24 11/27/24 Min Mean Max Date Total Max Avg Total Fecal Chlorine BOD <4.0 <4.0 <4.0 <4.0 <4.0 <4.0 <4.0 BOD Removal: 100.0% Date Set. Solids Turbidity (Grab) <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Influent Brine Received Volume (Gallons) N/A BOD 160 330 190 120 120 200.0 330 pH 7.03 7.39 7.25 7.34 7.03 7.25 7.39 TSS Oil& Grease 130 170 200 120 120 155.0 200 TSS Removal: 100.0% Temp "F 66.7 66.0 62,9 67.2 62.9 65.7 67.2 Sludge Removal Date Gallons 11/4/24 4,000 11/13/24 4,000 (gpm) (gpm) Coliform Coliform Residual 1 0.043032 61 2 0.049297 59 3 0.053129 63 4 0.051981 63 5 0.039140 61 6 0.047547 61 7 0.043683 64 8 0.049190 61 9 0.056219 66 10 0.060110 63 11 0.059512 64 12 0.041603 62 13 0.040156 63 14 0.043127 62 15 0.039006 62 16 0.045520 59 17 0.048832 63 18 0.040495 59 19 0.039723 65 20 0.036088 60 21 0.038743 63 22 0.041536 59 23 0.054100 63 24 0.050311 60 25 0.081539 165 26 0.100313 167 27 0.076948 101 28 0.067913 102 29 0.063868 95 30 0.068818 44 31 Min 0.036088 44 Max 0.100313 167 30 34 37 36 27 33 30 34 39 42 41 29 28 30 27 32 34 28 28 25 27 29 38 35 57 70 53 47 44 48 25 70 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 <5.0 <1.8 <1.8 0.00 <1.8 <1.8 1.00 <5.0 <5.0 <5.0 <1.8 <1.8 0.00 <1.8 <1.8 0.00 (Grab) (Grab)* (Grab) 11/7/24 11/14/24 11/21/24 11/27/24 Min Mean Max Date NIA <1.8 <1.8 0.00 <1.8 <1.8 0.00 "Effluent pHs samples were collected on1 11/8, 11/15, 11/22, and 11/27. <1.8 <1.8 0.02 <1.8 <1.8 0.00 Effluent Limits mg/L mg/L mg/L NTU MPNI 100 mL mg/L pH units mL/L % Parameter BOD Suspended Solids Oila and Grease Turbidity Total Coliform Chlorine Residual pH Settleable! Solids BODITSS Removal Units Monthly Avg Weekly/ Avg Daily Max 40 40 25 75 60 60 40 100 7Sample Median: 23 Moret than oncei in3 300 days: 240 Daily Maxiumum: 2,400 6Month! Median: 0.3 Between 6.0-9.0 1.0 1.5 275% 90 90 75 225 <1.8 <1.8 0.00 <1.8 <1.8 1.00 Mean 0.052383 72.0 36.4 <1.8 <1.8 0.03 Total 1.571479 Effluent daily (dry weather) flow! NTE0.2MGD (mean). Icertify under penalty ofp perjury that the foregoingi is true and accurate and that the sampling procedure anda analysis used are as specifiedi in the Waste 1.2 3.0 : Discharge Order fort this facility. SIGNATURE: PRINTED NAME: DATE: TITLE: DISCHARGER SELF-MONITORING ORDER R3-2017-0025 NPDES CA0047830 WDID3400101001 Month: NOVEMBER: 2024 California Regional Water Quality Control Board, Central Coast Region Monthly report due last day off following month Annual report due. January 30 Beach Facility Avila CSD Wastewater Treatment Process Sampling MBR Influent (24HC) 11/7/2024 96 53 MBR Aeration (grab) 11/7/2024 8,100 7,200 Parameter (mg/L) Date BOD (mg/L) Total Suspended Solids (mg/L) Volatile Suspended Solids (mg/L) The process sampling results attached were required by the manufactureri for thef first) year ofc operation ofthe WWTP. Avila Beach CSD staff have elected to continue monthly process sampling beyond this requirement: to monitor plant performance. The constiluents/feguency, may change att the discretion ofA Avila Beach CSD. 8 2 8 A - L 3 - a S - a B AVGEd SNOT7VS L 3 a : HLNOW d3d SNOTTVS - N 3 M S SNOTTVS o 7/bu 0 e 8 0 ? 8 6 00 6 7/bw 3 SNOT7V9 8 9 8 B 2 W A 2 B S B 3 SNOT7VS DISCHARGER SELF-MONITORING ORDER R3-2017-0025 NPDES CA0047830 WDID3400101001 Month: DECEMBER 2024 California Regional Water Quality Control Board, Central Coast Region Monthly reportd due last day off following month Annual report due. January: 30 Daily Flow (MGD) Avila Beach CSD Wastewater Treatment Facility Effluent and Influent Monitoring Weekly Weekly Weekly Weekly Monthly Effluent Effluent Influent Influent Effluent TSS (24HC) (24HC) (24HC) (24HC) (Grab) <5.0 <5.0 25 <5.0 <5.0 6.3 25 Effluent Monitoring Weekly Weekly Weekly Weekly 0.25 0,10 0.20 0.25 0.10 0.20 0.25 Effluent Monitoring Biweekly Biweekly Daily <1.8 <1.8 0.12 <1.8 <1.8 0.00 Date 12/5/24 12/12/24 12/19/24 12/27/24 Min Mean Max Date Total Max Avg Total Fecal Chlorine BOD <4.0 <4.0 <4.0 <4.0 <4.0 <4.0 <4.0 BODI Removal: 100.0% Date Set. Solids Turbidity (Grab) <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Influent Brine Received Volume (Gallons) NIA BOD 260 270 270 320 260 280.0 320 pH 7.41 7.26 7.44 7.42 7.26 7.38 7.44 TSS Oil& Grease 220 220 100 290 100 207.5 290 TSS Removal: 97.0% Temp F 64.2 62.2 66.5 67.6 62.2 65.1 67.6 Sludge Removal Date Gallons 12/10/24 4,800 (gpm) (gpm) Coliform Coliform Residual 1 0.057873 84 2 0.049699 84 3 0.040108 60 4 0.035701 60 5 0.044919 93 6 0.043732 60 7 0.042025 59 8 0.044959 59 9 0.045439 61 10 0.026977 62 11 0.045260 61 12 0.045394 90 13 0.050609 87 14 0.044867 88 15 0.034036 84 16 0.035132 84 17 0.027977 81 18 0.041469 83 19 0.039262 84 20 0.051537 80 21 0.046535 82 22 0.052507 80 23 0.043763 83 24 0.048760 85 25 0.042310 79 26 0.043565 81 27 0.060910 96 28 0.068720 110 29 0.073315 123 30 0.070328 126 31 0.070459 148 Min 0.026977 59 Mean 0.047360 84 Max 0.073315 148 51.0 40 35 28 25 31 30 29 31 32 19 31 32 35 31 24 24 19 29 27 36 32 36 30 34 29 30 42 11 48 51 49 49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 <1.8 0.00 0.00 0.00 0.00 <5.0 <5.0 <5.0 <5.0 <1.8 <1.8 0.00 <1.8 <1.8 1.00 (Grab) (Grab)* (Grab) 12/5/24 12/12/24 12/19/24 12/27/24 Min Mean Max Date NIA <1.8 <1.8 0.00 <1.8 <1.8 0.00 *Effluent pHs samples were collected ont 12/5, 12/12, 12/20, and 2/26, <1.8 <1.8 0.00 Effluent Limits mg/L mg/L mg/L NTU MPN/ 100 mL mg/L pH units mL/L % Parameter BOD Suspended: Solids Oila and Grease Turbidity Total Coliform Chlorine Residual pH Settleable Solids BODITSS Removal Units Monthly Avg Weekly Avg Daily Max 40 40 25 75 60 60 40 100 7Sample Median: 23 More than oncel In3 30 days: 240 Daily Maxiumum: 2,400 6Month Median: 0.3 Between 6.0-9.0 1.0 1.5 75% 90 90 75 225 <1.8 <1.8 0.00 19.0 <1.8 <1.8 0.00 32.8 <1.8 <1.8 0.04 11 <1.8 1.00 Total 1.468147 Effluento daily (dry weather) flow NTEO 0.2A MGD (mean). Icertify under penalty ofp perjuryt that the foregoing is true anda accurate and that the sampling procedure anda analysis used are ass specifiedi in the Waste 1.2 3.0 * Discharge Order fort this facility. SIGNATURE: PRINTED NAME: DATE: TITLE: DISCHARGER SELF-MONITORING ORDER R3-2017-0025 NPDES CA0047830 WDID 34 400101001 Month: DECEMBER 2024 California Regional Water Quality Control Board, Central Coast Region Monthly report due last day off following month Annual report due. January 30 Avila Beach CSD Wastewater Treatment Facility Process Sampling MBR Influent (24HC) 12/5/24 140 48 MBR Aeration (grab) 12/5/24 9,400 9,200 Parameter (mg/L) Date BOD (mg/L) Total Suspended: Solids (mg/L) Volatile Suspended Solids (mg/L) Thep process sampling results attached were required byt the manufacturer fort thet first year ofc operation oft the WWTP. Avila Beach CSD staff! have elected to continue monthly process sampling beyond! this requirement: to monitor plant performance. The constituentislrequeney may change at the discretion ofA Avila Beach CSD. a 9 1 M L 2 L : C S E a S o 0 A AVGEd SNOTTVS 8 h N E 0 LJ & S A N O - A C / a S o 2 € B 3 HLNOW a3d SNOTTVS 2 3 2 s 3 3 5 M SNOT7VS 8 8 € A 8 7/bw 0 - e ? 9 66 d0 6 N 1 7/bw 8 8 E N SNOTTV9 0 3 & L W S 0 2 - SNOTTVS AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: FROM: DATE: Board of Directors Brad Hagemann, General ManagéfA Ky January 14, 2025 SUBJECT: Public Hearing Relating to Solid Waste Franchise Rate Increase (Actions Required: Open Public Hearing: Receive Comments and lor Protests; Close Public Hearing; Board Consideration of Resolution No. 2025-01 Adopting Solid Waste Rates for Avila Beach CSD) Recommended Procedure: 1. Open Public Hearing; 3. Close Public Hearing; 2. Consider Staff Report; Receive Comments and/or Protests; 4. Tabulate number of valid protests and report findings; 5. Ift there is not a majority protest, consider adoption of Resolution No. 2025-01 Adopting Solid Waste Rates for Avila Beach Community Services District effective January 1,2 2025 1.A Adopt Resolution No. 2025-01 approving a solid waste rate increase retroactively effective 2. Approve Amendment #1 to the Solid Waste Collection Franchise Agreement to include Appendix 1, the Annual Solid Waste Rate. Adjustment Methodology and authorize the General Manager to execute the amended agreement with South County Sanitation Service/Waste Staff Recommendation: to. January 1, 2025; and Connections US, Inc. Discusion/Background: At the November 12, 2024 Board meeting, the Board received a presentation from District staff and R3 staff member, Garth Shultz regarding a proposed new solid waste rate setting methodology and the Draft Prop 218 Hearing Notice to increase solid waste rates by 4.6%, effective January 1,2 2025. At the November 12th meeting the Board approved the proposed Rate Setting Methodology, approved the publication and mailing of the Prop 218 Hearing Notice and set the. Hearing Date for. January 14, 2025. A summary of the rate increase analysis was provided in the November 12,2024, staffre report. The November 12, 2024 staffi report is provided as an attachment to this staffreport for reference. Solid Waste Rate Adjustment Methodology As presented at the November 12th Board meeting, the City of San Luis Obispo acted as the lead agency with support from the District in negotiating the new rate setting methodology. Eight other regional agencies joined the effort and all are considering franchise agreement changes similar to the one being presented at this meeting. The new rate adjustment methodology was presented in detail at the November 12th Board meeting. Staff1 has attached the Executive Summary of methodology for the Board's reference. Amendment #1 and Appendix 1 includes the proposed franchise agreement language for the new rate setting methodology. Attachments: 1. 2. 3. 4. 5. November 12, 2024 Staff Report Resolution No. 2025-01 Community Services District Executive Summary oft thel Rate Adjustment Methodology Report Appendix 1 to the Annual Rate Adjustment Methodology Amendment #1 to the Solid Waste Franchise. Agreement Between South County Sanitation and Avila Beach AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: FROM: DATE: Board ofDirectors Brad Hagemann, General Manager November 12, 2024 SUBJECT: Discuss and Consider Approval the South County Sanitary Services Solid Waste Rate. Adjustment Methodology and Proposed 2025 Rate Report; Approve the Draft Prop 218 Hearing Notice; and Direct Staff to Initiate a Proposition 218 Process, Setting the Hearing Date for. January 14, 2025 Recommendation: Approve final draft ofthe South County Sanitary Servicerate study report and direct stafftoinitiate al Proposition 218 process and setting the public hearing date for. January 14, 2025. Background South County Sanitary Services (SCSS) provides solid waste collection, recycling, and green waste services within the Avila Beach Community Services District ("District") servicearea under aFranchise Agreement ("Agreement"). SCSS iss seeking ai rate adjustment to coveri increased costs associated with cost-of-living adjustment for collection operations, increased costs associated with Annual adjustments to SCSS' solid waste rates havel historically been reviewed in accordance with the "City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates" which was originally established in 1994 (1994 Rate Manual). The 1994 Rate Manual allows for a cost-based rate adjustment every three years and interim rate adjustments in the other two years. In interim rate periods, SCSS is limited to adjustments based on inflation, tipping fee adjustments, and franchise or regulatory fee changes. During cost-based rate adjustment years, SCSS can request adjustments due to changes in other operational costs as SCSS and other agencies in San Luis Obispo County have, for several years, intended to update the annal rate adjustment: methodology. The City of San Luis Obispo has been working with Waste Connections, SCSS's parent company, to develop and implement a new rate adjustment methodology to1 replace the 30-year-old Rate Manual. Thel key objectives for a newi ratea adjustment methodology are to enhance rate stability, predictability, faimess, transparency, ease of administration, and cost-eftectiveness. The City ofSanl Luis Obispo contracted with) R3 Consulting Group, Inc. (R3) to support development and negotiation ofai new rate adjustment methodology. The new rate adjustment methodology is available for consideration by other public agencies in San Luis Obispo County. The District has been following the development of the new rate the organics digester facility and landfilling. set forth in the 19941 Rate Manual. ATCHI adjustment methodology, which will bej presented tot thel Board as an amendment to the Agreement with SCSS in association with the January 14, 2025 public hearing regarding the 2025 rate The City of San Luis Obispo also contracted with R3 to conduct a detailed review of the 2025 cost-based rate applications submitted by Waste Connections to ten agencies in San Luis Obispo County, including thel District. The District received an initial rate adjustment: request from SCSS for an adjustment to the District'ss solid waste rates of3.97% effective January 1,2 2025. AfterR3's review, adjustments necessary for effectuation of the new rate methodology and new regional adjustment. service enhancements, the recommended 2025 rate adjustment is 4.60%. Discussion: Cost-Based Rate Adjustment R3 completed a thorough review of SCSS' 2025 cost-based rate adjustment application and adjustments necessary for the new recommended rate adjustment methodology. After careful review of the rate adjustment request, and the outcomes of negotiations of a new rate adjustment methodology between the City ofs San Luis Obispo and' Waste Connections, R3 completed ai report evaluating the 2025 rate adjustment request and the new: rate methodology (Attachment A). R3's review suggests that the original 3.97% adjustment effective January 1, 2025, is justifiable in accordance with the 1994 Rate Manual and may be accepted by the District in the event that the R3's report further recommends the new: rate adjustment methodology and the corresponding rate adjustment of4.60%, which will provide key benefits to the District in terms ofrate predictability and stability and new enhanced services. The table below shows the current and proposed monthly residential solid waste and recycling rates given the recommended 4.60% adjustment. Note that SCSS will pro-rate the rate adjustment given that Board authorization ofrate adjustment would be District does not adopt the new rate adjustment methodology. after. January 1,2025. Table 1. Proposed Single Family Residential Monthly Rates Current Charges $28.31 $46.78 $65.24 2024 Monthly Rates Proposed 2025 $29.61 $48.93 $68.24 Container Size 32 Gallons 64 Gallons 96 Gallons Increase $1.30 $2.15 $3.00 New Rate Adjustment. Methodology The City of San Luis Obispo, in its capacity as the lead agency on the solid waste rate adjustment methodology update process, and inj partnership with Los Osos Community Services District and Waste Connections, completed negotiations and arrived at tentative agreement with Waste Connections regarding the terms and conditions of a new rate adjustment methodology. The outcome was the result ofextensive good faith negotiations between the City of San Luis Obispo and Waste Connections, with due consideration to input provided by other public agency stakeholders, including Avila Beach Community Services District. Pending Board approval, the new: rate adjustment methodology will replace the 19941 Rate Manual and will regulate annual rate adjustments for the District's solid waste rates starting in 2026. The new methodology fulfills key objectives including rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness. Additionally, the new methodology can be applied on a regional scale and is available as recommended alternative to the 1994 Rate Manual for all agencies, including the District. Thel key features of the newi methodology include: Capped CPI Adjustments: Starting in 2026, rate adjustments will be based on the Garbage and Trash CPI, with a floor of 2% and a cap of 5%. Amounts under 2% or over 5% will carry forward. The CPI adjustment will apply to Waste Connections' Revenue Balancing Mechanism: Starting in 2027, adjustments to rates will account fors shortfalls or surpluses in Waste Connections' actual revenues compared toj projected revenues from prior years. For example, ifWaste Connections' 2025 revenues exceed projections, the amount of surplus revenues will be credited to the rates in 2027 (and vice versa), achieving fairness in compensation and rates for the company and for ratepayers. Such adjustments would take place annually and willl bei independent ofthe CPI cap and floor noted above. It should be noted that SCSS's 2023 net income was such that, were a revenue balancing mechanism in place at the time, surplus revenues would have been carried forward to the 2025 rate year and would have offset the Less Frequent Cost-Based Adjustments: Currently, solid waste rates are adjusted based on the 1994 Ratel Manual everythree years on Waste Connections' costs. Viai the newmethodology, cost-based adjustments would occur ai maximum ofevery five years, and only ifrequested by Waste Connections or the District. The first opportunity for a cost-based adjustment will bei for the 2030 rate year. Ifneither Waste Connections nor the District request a cost-based adjustment, then the CPI adjustment approach will be applied. Cost-based adjustments will be based on Waste Connections' consolidated audited financial statements for the region. Timeframes for cost-based adjustment application and review process will be ample, such that the District willl have sufficient time for review and approval processes and such that the potential for delay in Updated Depreciation Lifespan for Trucks: The 1994 Rate Manual set a 7-year depreciation schedule for solid waste collection trucks. Modern solid waste collection trucksl have a 10-year lifespan, and the depreciation schedule was adjusted accordingly. Updated Profit Allowance: The 2025 rate adjustment will include a 9% profit allowance of projected collection costs and in 2026 and thereafter the profit allowance will be 10%. The updated profit allowance is in-keeping with industry standards for solid waste services. For context, the 2025 profit allowance is approximately 5% of revenues and R3 estimates that the 2026 profit allowance will be approximately 5.5% Removed Limitation on Corporate Overhead: The 1994 Rate Manual placed a limitation on corporate overhead costs. Today, corporateoverhead costs fund! legal, tax, payroll, human resources, engineering, compliance, IT, training and recruiting collection and post-collection cost centers. forthcoming rate adjustment. implementation is minimized. ofrevenues. programs. The prior limitation is recommended for removal in order to fund these services. Compensation to Waste Connections for corporate overhead will be capped via the CPI adjustment through 2029 and may be cost-adjusted in 2030 and subject to Extraordinary Adjustments: The California Air Resources Board (CARB). Advanced Clean Fleets (ACF) regulation is requiring all solid waste collection trucks to be zero emissions in 2042. This includes aj phased inj plan to get the percentage of the fleet to be zero emission vehicle (ZEV) with 10% by 2030, 25% by 2033, 50% by 2036,75% by 2039 and 100% by 2042. During CPI Adjustment years, Waste Connections may request extraordinary rate adjustments due to changes in law affecting collection operations, including for compliance with CARBS's ACF electrification mandate (which may necessitate change to depreciation schedules). The District may, but is not obligated to, consider requests for extraordinary rate adjustments due to changes in law affective post-collection operations. Requests for extraordinary change are subject to good faith meet and confer negotiations between the District and Waste Connections. Customer. Assistance Program: 20% low-income discount provided to residential customers using 32-gallon cart service, using existing jurisdictional practices on low-income relief for their offered utility type services with evidence ofqualifying Free Bulky Waste Collections: Collection of a bulky waste item twice annually from residential accounts at no cost via bi-annual voucher program, Annual Cart Exchange: Once annual exchange of a residential solid waste, justification and potential adjustment or limitation at that time. Regional Service Enhancements: financial hardship. recycling, or organics cart per customer account. Per R3's report, thel key factors affecting the 2025 rate adjustment are summarized as follows: A doubling of post-collection costs for organics processing since 2022 due to updated costs for processing infrastructure to meet the requirements of Senate Bill (SB) 1383. Market rate adjustment of post-collection costs for landfill disposal, which have remained flat since 2016. Landfill disposal costs have been below market at $41 per ton since 2016 and will increase to a fair market cost of$70 per ton in 2025. Cost-of-living changes in collection costs, which include labor, capital, operating expenses, insurance, and overhead costs, for 2025 increases over 2024 amounting to Additional costs for regional service enhancements, described above, which add 0.19% approximately 4.21%. to the 2025 rate adjustment. Taken altogether, and including appropriate adjustments to SCSS' original request to achieve the objectives of thei new ratei methodology, the 2025 rate adjustment effective. January 1,i is 4.60% as shown in the table below: Original Adjustment per 1994 Rate Manual Revised Depreciation Schedule Remove! Limitation on Corporate Overhead Regional Service Enhancements Updated Profit Allowance Recalculated Franchise Fee 3.97% -1.33% 1.51% 0.19% 0.20% 0.06% 4.60% Revised Adjustment for New Methodology Staffrecommends: setting the date for a Public Hearing on. January 14, 2025. Rates for solid waste collections are addressed int the District'sOrdinance. Thel PublicHearing would bel held concurrent with your Regular Board Meeting wherein staff would tally all protest votes received and determine whether a majority protest exists. If there is not a majority protest, the Board may authorize the new rates effective January 1, 2025 (SCSS will prorate customer bills back to that date). Recommendation Staffrecommends the Board approve thei ratei review report, direct stafft to initiate the! Proposition 218 process, and set January 14, 2025 as the Public Hearing date. ATTACHMENT A. R3 Consulting Group, Inc. Rate Report B. Draft ABCSD Proposition 218 Notice REPORT City of San Luis Obispo and Participating Agencies New Solid Waste Rate Adjustment Methodology and 2025 Rates Submitted electronically: November 1, 2024 CONSULTING GROUP, INC. BOUAGEPNEPCTMAGPNENUN R3 ATCH 2 TABLE OF CONTENTS 1. Executive Summary page 1 2. Background page 4 3. New Solid Waste Rate Adjustment Methodology and 2025 Rates page 10 Attachments Summary of Original 2025 Base Year Rate Adjustments Example Rate Calculations for 20261 through 2029 2 Revised 2025 Rate Adjustments 3 CPI-Uf for Garbage and Trash City of San! Luis Obispol New Solidy Waste Rate Adjustment Methodologya and 2025F Rates TOC R3 1. EXECUTIVE SUMMARY New Rate Adjustment Methodology The City of San Luis Obispo, ini its capacity as the lead agency on the solid waste rate adjustment methodology update process, and inj partnership with Los Osos Community Services District and' Waste Connections, completed negotiations and arrived at tentative agreement with Waste Connections regarding the terms and conditions ofa a new methodology. The outcome was the result of extensive good faith negotiations between the City and' Waste Connections, with due consideration to input provided by Pending City Council approvals, the new methodology will replace the 1994 Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (1994 Rate Manual) and will regulate annual rate adjustments for the City's solid waste rates starting in 2026. The new methodology fulfills key objectives established by the City and Waste Connections, including rate stability, predictability, faimess, transparency, ease of administration, and cost-effectiveness. Additionally, in response tor requests by other Agencies that contract with Waste Connections in San Luis Obispo County, the new methodology can be applied on a regional-scale andi is available as recommended alternative to the 1994 Rate. Adjustment Manual for those Agencies. other public agency stakeholders. The key features of the new methodology include: CPI Adjustments: Starting in 2026, rate adjustments will be! based on the Garbage and Trash CPI, with ai floor of 2% and a cap of 5%. Amounts under 2% or over 5% will carry forward. The CPladjustment will apply tol Waste Connections' collection. and post-collection cost centers. Revenue Balancing Mechanism: Starting in 2027, adjustments to rates will account for shortfalls or surpluses in Waste Connections' actual revenues compared to projected revenues from prior years. For example, if Waste Connections' 2025 revenues exceed projections, the amount of surplus revenues will be credited toi the rates in 2027 (and vice versa), achieving faimess in compensation and rates for the company and for ratepayers. Such adjustments would take place annually and willl be independent ofi the CPI cap andi floor noted above (therei is no cap Less Frequent Cost-Based Adjustments: Currently, solid waste rates are adjusted based on the 1994 Rate Adjustment Manual everyt three years on Waste Connections' costs. Via the new methodology, cost-based adjustments would occur a maximum of every five years, and onlyi if requested by Waste Connections or the City. The first opportunity for a cost-based adjustment will bei fort the 2030 rate year. Ifneither Waste Connections nor the City request a cost-based adjustment, then the CPI adjustment approach will be applied. Cost-based adjustments willl be based on Waste Connections' consolidated audited financial statements for the region. Timeframes for cost-based adjustment application and review process willl be ample, such that the City will have sufficient time for review and approval processes and such that the potential for delay in implementation is minimized. These timeframes will be delineated in thet forthcoming Updated Depreciation Lifespan for Trucks: The 1994 Rate Manual set a 7-year depreciation schedule for solid waste collection trucks. Modern solid waste collection trucks have a 10-year Updated Profit Allowance: The 2025 rate adjustment will include a 9% profit allowance of projected collection costs andi in 2026 and thereafter the profit allowance will be 10%. The updated profit allowance is in-keeping with industry standard ranges for solid waste services. For on these amounts). amendment to the agreement with Waste Connections. lifespan, and the depreciation schedule was adjusted accordingly. of San Luis City Obispol New Solid Waste Rate Adjustment Methodology and 20251 Rates 1of19 R3 Executive Summary context, the 2025 profit allowance is approximately 5% of revenues and we estimate that the 2026 profit allowance will be approximately 5.5% of revenues. Profit will not be allowed on post- Removed Limitation on Corporate Overhead: The 1994 Rate Manual placed al limitation on corporate overhead costs. Today, corporate overhead costs fund legal, tax, payroll, human resources, engineering, compliance, IT, training andi recruiting programs. The City and Waste Connections agreed to remove the prior limitation in order to fund these services. In the near- term, compensation to Waste Connections for corporate overhead will be limited by the CPI adjustment noted above. Cost-based adjustments to corporate overhead are possible in 2030, and willl be subject to review, justification, and potential limitation ati that time. Extraordinary Adjustments: The California Air Resources Board (CARB). Advanced Clean Fleets (ACF) regulation is requiring all solid waste collection trucks to have zero emissions by 2042. This includes a phased in plan to get the percentage ofi the fleet to be: zero emission vehicle (ZEV) with 10% by 2030, 25% by 2033, 50% by 2036,75% by 2039: and 100% by 2042. During CPI Adjustment years, Waste Connections may request extraordinary rate adjustments due to changes in law affecting collection operations, including for compliance with CARB's ACF zero emission mandate (which may necessitate change to depreciation schedules). The City may, buti is not obligated to, consider requests for extraordinary rate adjustments due to changes in law affecting post-collection operations. Requests for extraordinary change are subject to good collection costs. faith negotiations between City and Waste Connections. New Service Enhancements During negotiations, the City and Waste Connections also took the opportunity to establish new: service enhancements that will discourage illegal dumping, provide cart cleaning exchanges, and offer rate relief forl low-income customers. The below service enhancements are available to the other Agencies that approve the new rate adjustment methodology in association with adjusted 2025 solid waste rates: Customer Assistance Program: 20% low-income discount provided to residential customers using 32-gallon cart service, using existing, jurisdictional practices on low-income reliefi for their Free Bulky Waste Collections: Collection of a bulky waste item twice annually from residential accounts at no separate cost, via clean-up week or voucher program depending on existing Annual Cart Exchange: Once annual exchange of a residential solid waste, recycling, or offered utility type services with evidence of qualifying financial hardship. program. organics cart per customer account. 2025 Rate Adjustments As ar result of the above, Waste Connections' 2025 rate. adjustment request was revised from a 9.29% increase to a 9.89% increase in solid waste rates, effective January 1, 2025 (and prior to other rate structure adjustments that the City and Waste Connections may enact). When the new rate methodology changes and service enhancements are equally applied to the other regional Agencies, the results are as shown in Table 1 on the following page. Additional details are included in Section 3 of this report. City of Sanl Luis Obispo! New Solidy Wastef Rate Adjustment Methodology and2 2025 Rates 20f19 R3 Executive Summary Table 1: 2025 Rate Adjustments Agency City of San Luis Obispo City of Arroyo Grande Los Osos CSD City of Pismo Beach Cambria CSD City of Grover Beach Nipomo CSD Oceano CSD Cayucos SD Avila Beach CSD Original 9.29% 3.97% 12.47% 3.97% 12.78% 3.97% 3.23% 3.76% 12.47% 3.97% Revised 9.89% 4.92% 13.18% 4.82% 12.59% 5.02% 5.04% 4.98% 14.32% 4.60% Wastel Rate Adjustment Methodology and2 20251 Rates 30f19 R3 City of San! Luis Obispol New Solidl RESOLUTION No. 2025- 01 RESOLUTION OF THE. BOARD OF DIRECTORS OFTHE AVILA BEACH COMMUNITY SERVICES DISTRICT CONFIRMING COMPLIANCE WITH THE PROTEST PROCEDURES OF SECTION 6, ARTICLE XIIIDOF' THE CALIFORNIA CONSTITUTION AND ADOPTING INCREASED RATES AND CHARGES FOR COMMERCIAL AND RESIDENTIAL COLLECTION AND DISPOSAL OF SOLID WASTE WHEREAS, South County Sanitary Service (herein the "Garbage Company"), pursuant to an exclusive franchise agreement, currently provides commercial and residential collection and disposal of solid waste services within the Avila Beach Community Services District ("District") boundary; and WHEREAS, on November 12, 2024, the Board of Directors reviewed the rate adjustment application and supporting materials from South County Sanitation Service requesting a rate increase for 2025; and WHEREAS, Government Code $61115 authorizes the District Board of Directors to WHEREAS, at the January 14, 2025, public hearing, the Board of Directors considered public comment in support and in opposition to the proposed rate increase and whether a majority protest exists pursuant to Section 6ofArticle XIII D ofthe California Constitution; and WHEREAS, based on facts and analysis presented by the District staff, the Staff Report, written protests received prior to the close of the public hearing and public testimony received, adopt rates or other charges by Resolution; and thel Board of Directors finds: A. The public hearing adopting this Resolution has been properly noticed pursuant to Government Code $54954.2 (The Brown Act) and Section 6 of Article XIII D of the California Constitution. The 45 Day Notice to Property Owners and/or Tenant Customers is incorporated herein by this reference. B. The written protests received by the District prior to the close of the public hearing do not constitute a majority protest. C. That the rates and charges adopted by this Resolution: 1. Are for the purposes of meeting operating expenses for providing solid waste 2. Do not exceed the funds required to provide commercial and residential solid 3. Do not exceed the proportional cost of services attributable to those parcels collection and disposal services within the District. waste collection and disposal services. receiving solid waste collection and disposal services. 1 AICH 3 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Avila Beach Community Services District Board ofDirectors as follows: Section 1. Rates and Charges. The rates and charges for commercial and residential collection and disposal of solid waste, as established in Exhibit A, attached hereto and incorporated herein by this reference, are approved and adopted. Additionally, solid waste: rates will increase January 1stof calendar years 2026, 2027, 2028 and 2029 based on Bureau of Labor Statistics Garbage and Trash Consumer Price Index and in accordance with the Annual Solid Waste Rate Methodology in Appendix 1t to the South County Sanitation Service franchise agreement. Section 2. Incorporation of Recitals. The above Recitals are true and correct and incorporated herein by this reference and constitute findings in support ofthis Resolution. Section 3. Severability. Ifany section, subsection, sentence, clause or phrase of this Resolution is for any reason held to be unconstitutional, ineffective or in any manner in conflict with the laws of the United States, or the State of California, such decision shall not affect the validity of the remaining portions of this Resolution. The Governing Board of the District hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional, ineffective, ori in any manner in conflict with the laws oft the United States or the State ofCalifornia. Section 4. Effect of] Repeal on Past Actions and Obligations. This Resolution does not affect prosecutions for violations committed prior to the effective date of this Resolution, does not waive any fee or penalty due and unpaid on the effective date oft this Resolution. Section 5. CEQA Findings. The Board of Directors of the District finds that the rates and charges adopted by this Resolution are exempt from the California Environmental Quality Act pursuant to Public Resources Code $ 21080(b)(8) and CEQA Guidelines Section 15273. Section 6. Inconsistency. To the extent that the terms or provisions of this Resolution may be inconsistent or in conflict with the terms or conditions of any prior District Ordinance(s), Motions, Resolutions, Rules, or Regulations, governing the same subject matter thereof, then such inconsistent and conflicting provisions of prior Ordinances, Motions, Resolutions, Rules, and Regulations are hereby repealed. 2 Section 7. Effective Date. This Resolution shall take effect immediately. The rates and charges adopted by this Resolution shall take effect January 1, 2025. On the motion of] Director following roll call vote, to wit: seconded by Director and on the AYES: NOES: ABSENT: The foregoing Resolution is hereby passed, approved, and adopted by the Board of] Directors of the Avila Beach Community Services District this 14th day of January 2025.. Peter Kelley President ofthel Board AVILA BEACH COMMUNITY SERVICES DISTRICT APPROVED ASTOFORM: ATTEST: Brad Hagemann General Manager and Secretary to the Board District Legal Counsel 3 Notice of Public Hearing Regarding Proposed Solid Waste Rate Adjustments Property Owners and Tenants - Customers: This notice is intended to inform you that the Avila Beach Community Services CSD (the "CSD") will hold a special meeting regarding rate adjustments (the "Proposed Rate Adjustments") proposed by South County Sanitary Service (the "Garbage Company") for properties and customers receiving solid waste, recycling, and green waste services within the CSD service area. The Proposed Rate Adjustments will be considered by the CSD at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information: The Date, Time, and Place oft the Public Hearing; The Reason fori the Proposed Rate Adjustments; Thei Effective date oft the Proposed Rate Adjustment; The Basis fori the Proposed Rate Adjustments;and The Majority Protest Procedures. NOTICE OF PUBLIC HEARING The Public Hearing for the Proposed Rate Adjustments within the CSD service area will be held on: Date: January 14, 2025 Time: 1:00PM Place: Avila Beach CSD Boardroom located at 100 San Luis Street, Avila Beach, CA At the Public Hearing, the Avila Beach CSD will consider all public comment in support of and in opposition to the Proposed Rate Adjustments and whether or not a Majority Protest exists pursuant to the California Constitution (as described below). If approved, the Proposed 2025 Rate Adjustment would become effective on January 1, 2025 and annual adjustments would be effective each. January1 1of2026, 2027, 2028 and 2029. Reason For and Basis of the Proposed Rate Adjustments The Proposed Rate Adjustment for 2025 is based on the Garbage Company's documented cost of providing solid waste services and is a 4.60% increase above current solid waste rates. This cost-based adjustment is necessary for the Garbage Company to continue to provide safe, environmentally sound and reliable solid waste removal, transportation and disposal services to the residents and businesses of the CSD. The adjustments are requested due to: Increases in organics processing costs - Third-party costs for the organic waste post-collection processing facility operated by the company formerly named Hitachi Zosen INOVA, and which are not within the Garbage Company's control, have doubled since 2022. The change in cost is Increases in landfill disposal costs = Related party costs for landfill waste disposal at Cold Canyon have remained flat since 2016. The 2025 rate adjustment reflects a market adjustment to these costs, from a per ton tipping fee of $41 per ton (in place since 2016) to a per ton tipping fee of $70. The Garbage Company provided market comparison demonstrating the the result of changes int facility capital and operating costs. applicability of the $70 per ton market tipping fee. 1 Collection costs including labor, vehicles, operating expenses and overhead - These costs are Adjustments necessary for moving to a new methodology for annual rate adjustments that provides for increased rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness. These include updated depreciation lifespans for solid waste collection vehicles, removal of a limitation on corporate overhead costs for legal, tax, payroll, human resources, engineering, compliance, IT, training and recruiting programs, and Adjustments for new service enhancements, including the ability for residents to exchange a solid waste collection cart once annually at no additional cost, no charge collection for one bulky item twice annually via clean-up weeks, and a rate assistance program providing a 20% low-income discount provided to residential customers using 32-gallon cart service (using existingjurisdictional practices on low-income relief for their offered utility type services). increasing approximately 4.21% in 2025. updated profit allowance in-keeping with industry standards. The Proposed Rate Adjustments for 2025 applicable to residential solid waste customers are shown in the table below. Garbage Container Size 32-gallon 64-gallon 96-gallon Change in Monthly Rate $1.30 $2.15 $3.00 2024 $28.31 $46.78 $65.24 2025 $29.61 $48.93 $68.24 Ina addition, commencing each. January 1 of 2026, 2027, 2028 and 2029 solid waste rates will be adjusted based ont the following: Annual change in the Bureau of Labor Statistics' Consumer Price Index (CPI) for Garbage and Trash Collection in the U.S all city average, with a minimum 2% adjustment and a maximum 5% adjustment. Amounts below the minimum or above the maximum will carry forward to the Calculation of a 10% profit allowance starting in 2026 (estimated at additional 0.67% to 0.69% Addition of a revenue balancing mechanism starting in 2027, wherein actual revenues from solid waste ratès over or under projections carry forward as additions to, or offsets against, the Rate adjustments for. January 1, 2026, 2027, 2028 and 2029 are not expected to exceed 7%. following year. adjustment in 2026). annual CPI adjustment. The Proposed Rate Adjustments have been independently reviewed for consistency with the City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management dated June 1994 and in accordance with the provisions of the CSD's Franchise Agreement with the Garbage Company, as amended, governing solid waste service within the boundaries of the CSD. The Proposed Rate Adjustments contemplate implementation of a new methodology for annual rate adjustments which is described in New Solid Waste Rate Adjustment Methodology and 2025 Rates report authored by independent reviewer, R3 Consulting Group, Inc. The consultant's report and the complete set of proposed 2025 solid waste rates is available at the. Avila Beach CSD Boardroom located at 100 San Luis St. Avila Beach, CA. 2 How DolProtest the Proposed Rate Adjustments? Pursuant to Section 6 of Article XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Adjustments to the Clerk oft the Board before the close of the Public Hearing referenced above. An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the CSD service area. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) Atenant(s) whose name appears on the Garbage Company's records as the customer of record for the corresponding parcel receiving solid waste, recycling, and green waste services within the CSD receiving services; or service area tenant-customer). Avalid written protest must contain a statement that you protest the Proposed Rate Adjustments, the address or Assessor's Parcel Number (APN) of the parcel or parcels which receive solid waste, recycling, and green waste services, and a signature by either the owner or the tenant-customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Adjustments subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of an majority protest. To be counted, a protest must be received in writing by the Clerk of the Board before the close oft the Public Hearing referenced above. Written protests regarding the solid waste rate adjustments may be mailed to: Avila Beach CSD Attn: Clerk of the Board P.O. Box 309 Avila Beach, CA 93424 Written protests may also be personally delivered to the Clerk of the Board at Avila Beach CSD Boardroom Ifv valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste, recycling, and green waste services within the CSD service area, then the CSD will not adjust the located at 100 San Luis St. Avila Beach, CA. rates for the services. 3 SOUTH COUNTY SANITARY SERVICES, INC. EFFECTIVE JANUARY 1, 2025 AVILA BEACH CSD Monthly Proposed Monthly Rate 1/1/2024 Increase Rate Effective 1/1/2025 Service Description Pickups Per Week Effective Rate RESIDENTIAL SINGLE-FAMILY DWELLING AND MULTI-UNIT (4 UNITS OR LESS): 32 Gallon Waste' Wheeler 64 Gallon Waste' Wheeler 96 Gallon Waste' Wheeler 1 1 1 $28.31 $46.78 $65.24 1.30 2.15 3.00 $29.61 $48.93 $68.24 Residential customers must use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick-up of one greenwaste/organics container (green lid), and one recycling container (blue lid). Rates are the same as commercial dumpsters and waste wheeler rates (below). MULTI-FAMILY (5 or MORE) COMMERCIAL DUMPSTERS -ALL AREAS: 1yd dumpster 1yd dumpster 1yd dumpster 1) yd dumpster 1yd dumpster 1yd dumpster 1yd dumpster 1.5 yd dumpster 1.5 yd dumpster 1.5 yd dumpster 1.5 yd dumpster 1.5) yd dumpster 1.5 yd dumpster 1.5 yd dumpster 2y yd dumpster 2yd dumpster 2yd dumpster 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 $137.55 $197.90 $261.49 $321.84 $388.84 $452.57 $603.36 $164.26 $251.27 $338.65 $472.63 $576.54 $687.19 $908.51 $177.68 $291.58 $415.52 6.33 9.10 12.03 14.80 17.89 20.82 27.75 7.56 11.56 15.58 21.74 26.52 31.61 41.79 8.17 13.41 19.11 $143.88 $207.00 $273.52 $336.64 $406.73 $473.39 $631.11 $171.82 $262.83 $354.23 $494.37 $603.06 $718.80 $950.30 $185.85 $304.99 $434.63 SOUTH COUNTY SANITARY SERVICES, INC. EFFECTIVE JANUARY 1, 2025 AVILA BEACH CSD Monthly Proposed Monthly 1/1/2024 Increase 1/1/2025 Rate Rate Effective $634.72 $778.58 $929.20 $220.85 $413.64 $578.53 Service Description 2y yd dumpster 2yd dumpster 2 yd dumpster 2yd dumpster 3 yd dumpster 3 yd dumpster 3 yd dumpster 3yd dumpster 3yd dumpster 3yd dumpster 3 yd dumpster 4 yd dumpster 4 yd dumpster 4y yd dumpster 4 yd dumpster 4) yd dumpster 4 yd dumpster 4 yd dumpster Pickups Per Week Effective Rate 27.91 34.24 40.86 55.97 $1,272.74 9.71 18.19 25.44 45.33 $1,030.73 53.81 $1,223.69 62.91 $1,430.49 86.65 $1,970.44 14.03 21.13 30.37 47.65 $1,083.51 59.05 $1,342.80 67.08 $1,525.28 104.24 $2,370.23 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 $606.81 $744.34 $888.34 $1,216.77 $211.14 $395.45 $553.09 $985.40 $1,169.88 $1,367.58 $1,883.79 $304.97 $459.36 $660.32 $1,035.86 $1,283.75 $1,458.20 $2,265.99 $319.00 $480.49 $690.69 The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning. COMMERCIAL- OTHER CHARGES: Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from at 64 or 96 gallon blue commingled recycle waste wheeler or a 32 or 64 gallon organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste due to weight). Ify you need al bini for recycling there is a charge (see below). Ify you need more frequent recycling, including organicsgreenwaste service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required. COMMERCIAL GARBAGE CANS -ALL AREAS: 32 Gallon' Waste Wheeler 32 Gallon' Waste Wheeler 1 2 5 $39.66 $56.10 1.82 2.58 $41.48 $58.68 SOUTH COUNTY SANITARY SERVICES, INC. EFFECTIVE JANUARY 1, 2025 AVILA BEACH CSD Monthly Proposed Monthly Rate 1/1/2024 $66.38 $106.29 $82.60 $118.81 $7.56 $8.74 $3.80 $18.88 $8.74 $4.37 $28.17 $18.89 $45.41 $45.41 $54.16 $44.31 $62.49 $15.95 $43.99 $54.16 $94.57 $93.10 $10.52 Rate Effective $69.43 $111.18 $86.40 $124.28 $7.91 $9.14 $3.97 $19.75 $9.14 $4.57 $29.47 $19.76 $47.50 $47.50 $56.65 $46.35 $65.36 $16.68 $46.01 $56.65 $98.92 $97.38 $11.00 Service Description 64 Gallon Waste' Wheeler 64 Gallon Waste Wheeler 96 Gallon Waste Wheeler 96 Gallon' Waste Wheeler Pickups Per Week Effective Rate increase 1/1/2025 3.05 4.89 3.80 5.47 0.35 0.40 0.17 0.87 0.40 0.20 1.30 0.87 2.09 2.09 2.49 2.04 2.87 0.73 2.02 2.49 4.35 4.28 0.48 1 2 1 2 each each each per month per month per month each time each time each time each time each time each each per yard per yard each time per month per hour per month 6 MISCELLANEOUS CHARGES - ALL CUSTOMERS: Overstacked Garbage & extra bags Minimum/unit Overstacked Greenwaste & extra bags Overstacked Blue Bin & extra bags Minimum/unit Iny yard service (per can or commodity) IN ADDITION TO: STANDARD GARBAGE RATES Monthly charge for additional 96-gallon green waste Monthly charge for additional 32, 64 or 96-gallon Minimum/unit service recycle service Waste wheeler cleaning Trip charge Non-payment downsize service Non-payment redeliver waste wheeler Non-payment reconnect service Small item pickup (TV, toilet) Appliance pickup-residential Garbage extras on your scheduled pickup day Garbage extras -NOT ON YOUR: SCHEDULED Re-deliver bin on stopped acct Sunday Service (in additional to garbage service level) Stand by time Lock Charges PICKUP DAY SOUTH COUNTY SANITARY SERVICES, INC. EFFECTIVE JANUARY 1, 2025 AVILA BEACH CSD Monthly Proposed Monthly Rate 1/1/2024 $16.44 $84.51 Rate Effective 1/1/2025 $17.20 $88.40 Service Description Pickups Per Week Effective Rate Increase 0.76 3.89 Clean Up Week Extra bin cleaning per item Replacementrepair at market price By quote only Damage/Destruction of bins or waste wheelers Larger than residential appliance or glass, glass doors, or plate glass Short Term Dumpsters: Delivery & Pickup-Bin Delivery & Pickup-Waste Wheeler $54.16 $18.89 $4.01 $43.99 $7.56 $3.11 $8.77 $24.59 $24.59 $24.59 $24.59 2.49 0.87 0.18 2.02 0.35 0.14 0.40 1.13 1.13 1.13 1.13 $56.65 $19.76 $4.19 $46.01 $7.91 $3.25 $9.17 $25.72 $25.72 $25.72 $25.72 Rental Empties Empties (Garbage) Empties (Recycle) Empties (Green Waste) Mattress: Twin Double Queen King Per Day Per Yard Per 32 Gal Per 32 Gal Per 32 Gal Each Each Each Each ADDITIONAL INFORMATION ALL CUSTOMERS: Styrofoam packing peanuts before placing int trash container. 1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates 2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag 3. Itise encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste ini their 4. Recycling, Greenwaste/Organcis and Garbage containers should spaced 31 feet apart away from any obstacles (i.e 5. Thet fee schedule above onlyi includes the Garbage Company rates and does not include IWMA fees, which are: separately 7. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policyi is stated at the bottom of every bill. 8. Customers can be charged for contamination feesi ini thet trash, recycling and/or the greenwaste/organics containers. respective containers and keepi it loose. mailboxes, cars, etc) before 6:00am on collection service day. 6. Cleaning fees willl be billed on a time and materials basis noted ont the billings. Any additional recycling services are charged out at 50% of the garbage rate. 7 AMENDMENT: #1TOTHE SOLID WASTE COLLECTION AGREEMENT BETWEEN SOUTH COUNTY SANITATION SERVICES AND AVILAI BEACH COMMUNITY: SERVICES DISTRICT THIS AMENDMENT #1 tot the Solid Waste Collection Franchise Agreement of the Avila Beach Community Service District (District) with South County Sanitation Service (Company) is made and entered into this WHEREAS, the District and Company entered into a written agreement on August 25, 2016, pursuant to which the Company renders solid waste, recyclable material and green waste collection, processing and WHEREAS, the process by which solid waste rates charged by Company to residents and businesses have been subject to annual adjustment pursuant to the "City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates" which was established in 1994 WHEREAS, the 1994 Rate Manual is outdated andi the District and the Company mutually desiret to replace it with a new methodology for processing annual adjustments to solid waste rates that will enhance rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness; and WHEREAS, the District partnered with the City of San Luis Obispo - acting as the lead agency on behalf of the District and eight other public agencies in San Luis Obispo County - and the Company in developing WHEREAS, the District Board of Directors heard a presentation regarding the features and parameters of WHEREAS, on November 12, 2024, the District Board of Directors voted unanimously to direct staffa and the Company to mail written notice to residents and businesses int the District regarding a) thet features and parameters oft the new methodology, b) the proposed adjustments1 to solid waste rates pursuant to the new methodology effective. January 1, 2025, and c) thei time and place ofa a public hearing regarding WHEREAS, the City of San Luis Obispo, acting as lead agency, met in good faith with the Company to develop the terms and conditions of the new rate adjustment methodology, attached hereto as WHEREAS, Appendix 1 includes the features and parameters of the new methodology that were WHEREAS, District and Company agree that Appendix 1 meets both parties' objectives for a new rate adjustment methodology that will enhance rate stability, predictability, fairness, transparency, ease of WHEREAS, District and Company mutually desire to amend the Agreement to replace references to the 14th day ofJ January, 2025. disposal services to residents and businesses in the District; and ("1994 Rate Manual"); and the features and parameters of a new methodology; and ar new methodology on November 12, 2024;and the proposed solid waste rates and the new methodology; and Appendix 1; and previously presented to the District Board of Directors; and administration, and cost-effectiveness; and 1994 Rate Manual with Appendix 1. Page 1 ATCH 4 AMENDMENT #1TOTHE SOLID WASTE COLLECTION AGREEMENT BETWEEN SOUTH COUNTY SANITATION: SERVICES AND AVILA BEACH COMMUNITY: SERVICES DISTRICT NOWTHEREFORE, it is mutually agreed as follows: 1. Section 10.9. Annual Financial Audit'shall be amended as follows: The reference to "City of San Luis Obispo Rate! Setting Process and Methodology Manual for Integrated Solid' Waste Rates dated. June 1994" is deleted and replaced by "Appendix1, Annual Solid Waste Rate Adjustment Methodology." 2. The second paragraph of Section 11.1 General shall be deleted in its entirety and replaced Contractor does not look to the District for the payment of any sums under this Agreement in consideration of the right to charge and collect from customers for service rendered at rates fixed by the Appendix 1, Annual Solid' Wate Rate Adjustment Methodology. 3. Section 11.4.Requests for Rate Adjustments shall be deleted ini its entirety and replaced Requests for Rate Adjustments. Contractor shall submit to the District an application for rate review annually in accordance with the procedures described ini the Appendix 1, Annual with the following: with the following: Solid' Waste Rate Adjustment Methodology. 4. Section 11.5.Special Interim Rate Review shall be deleted in its entirety and replaced with Eataordnanyaopustmens may be made in accordance with the procedure set forth in the 5. Section 11.6 Allowable Profit shall be deleted in its entirety and replaced with thet following: When performing the procedures described in the Appendix 1, "Annual Solid' Waste Rate Adjustment Methodology, "the allowable profit on expenses shall be as set forth therein. 6. Appendix 1- Annual Rate Adjustment Methodology, is hereby added toi the Agreement, as 7. District and Company agree and acknowledge that, except as explicitly modified by this 8. Each Party executing this Amendment represents and warrants that iti is duly authorized to 9. This Amendment may be executed in one or more facsimile or original counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same the following: Appendix 1, Annual Solid' Waste Rate Adjustment Methodology." attached hereto. Amendment, the Agreement remains int full force and effect. cause tis Amendment to be executed and delivered. instrument. Page 2 AMENDMENT #1 TOTHE SOLID WASTE COLLECTION. AGREEMENT BETWEEN SOUTH COUNTY: SANITATION: SERVICES AND AVILA BEACH COMMUNITY SERVICES DISTRICT IN WITNESS WHEREOF, the parties hereto have executed this First Amendment the day andy year first above written. Date (month, day and year) South County Sanitation Service Date (month, day and year) Avila Beach Community Services District By: Its: By: Attest By: Its: By: Attest APPROVED ASTO FORM: By: District Attorney Page 3 Appendix 1 Annual Rate Adjustment Methodology Section 1 Objectives This Exhibit details the process by which Maximum Service Rates are adjusted annually to provide fair and adequate compensation to Franchisee for collection ofs solid waste and other services provided to Customers and the District per the Agreement. The annual rate adjustment methodology described herein fulfills key objectives established by the District and Franchisee, including rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness. Section 2 Index-Based Rate Adjustments Except in the case of a Cost-Based Rate Adjustment (see Section 3, below) Franchisee's Maximum Service Rates shall be adjusted via the Index-Based Rate Adjustment methodology described in this section. The Index-Based Rate Adjustment methodology shall be used to adjust Maximum Service Rates effective each January 1 of 2026, 2027, 2028, and 2029 and any subsequent year during which a Cost- Based Rate Adjustment is not allowed or not requested by the District or the Franchisee. Iny years during which Maximum Services Rates are to be adjusted pursuant to this Index-Based Rate Adjustment methodology, Franchisee shall submit a report to the District on or before September 1 detailing its calculations of Index-Based Rate Adjustment. District shall have the right to review Franchisee's calculations of Index-Based Rate Adjustment for mathematical accuracy and adherence to thet terms and conditions of this Exhibit. District shall prepare written findings regarding adjustments to the Franchisee's calculations of Index-Based Rate Adjustment that are required for mathematical accuracy and adherence to the terms and conditions of this Exhibit on or before October 30. Index-Based Rate Adjustments shall be prepared and calculated in accordance with the steps described below. All Index-Based percentages shall be rounded to the nearest hundredth of a percent, and all cost A. Calculation of CPI Adjustment to Franchisee's Collection Services and Post-Collection Franchisee's prior year cost projections for Collection Services and Post-Collection Services shall be adjusted in accordance with the Consumer Price Index (CPI) for Garbage and Trash Collection, U.S. City average, Bureau of Labor Statistics Series I.D. CUURO000SEHGO2. The CPI Adjustment shall be equal to the percentage change in the average 12-month CPI value ending June of the current year and compared to the average 12-month CPI value ending June of calculations shall be rounded to the nearest dollar. Services the prior year. For example, the CPI used to set the 2026 rates shall be calculated as follows: (Average CPI from July 1, 2024 to) June 30, 2025) - (Average CPI from July 1,2023 to June 30,2024) Average CPI from July 1, 2023 to June 30, 2024 Ifthe percentage change is below 2%, the applicable CPI Adjustment shall be 2%, with the difference in the amount below 2% being carried forward as a credit ont the rates and applied tot the subsequent year. If the percentage change is above 5%, the applicable CPI Adjustment shall be 5%, with the difference in the amount above 5% being carried forward and applied to the rates in subsequent years. Franchisee's prior year cost projections for Collection Services and Post- Collection Services shall be escalated by the resultant CPI Adjustment, rounded to the nearest Franchisee's 2025 cost projection for Collection Services is $174,605 and Franchisee's 2025 cost projection for Post-Collection Services is $98,686. For 2026, by way ofe example, if the percentage dollar. Page 1 of10 KTCH 5 Appendix 1 Annual Rate Adjustment Methodology change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 5%, then Franchisee's 2026 cost projection for Collection Services shall be $183,335 and Franchisee's! 2026 cost projection for Post-Collection: Services shall be $103,620. Likewise, ift the percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 2%, then Franchisee's 2026 cost projection for Collection Services shall be $178,097 and Franchisee's 2026 cost Example Calculation for application of amounts above cap on CPI increases applied to Collection Services component of CPI Adjustment (noting that cap on CPI increases also applies to Post- projection for Post-Collection Services shall be $100,659. Collection Services): Year1 Collection Services: $174,605 12-month average CPI index increase: 6.00% $174,605X(1#5.0097-5183,335 *5% cap on CPI increases. 1% difference carried over to next year Year 2 Collection Services: $183,335 12-month average CPI index increase: 6.00% $183,335x(145.096)-5192,502 *5% cap on CPI increases. 1% difference carried over to next year Year 3 Collection Services: $192,502 12-month average CPI index increase: 3.00% $192,502x(1-5.096)=5202,127 *3.00% + 1.00% carried forward from Year 1+ 1.00% carried forward from Year 2 The above is also demonstrated in Table 1, ont thet following page. Page 2 of10 Appendix 1 Annual Rate Adjustment Methodology Table 1-1 Example of CPI Cap and Carryforward 2025 $174,605 6.00% 5.00% 2026 $183,335 6.00% 5.00% 2027 $192,502 3.00% 5.00% 2028 $202,127 Collection Services 12-Month Average CPI CPI Adjustment (5% Cap) B. Calculation of Profit Allowance The Index-Based Rate Adjustment methodology includes a component for Franchisee's fair and reasonable Profit Allowance. Profit Allowance is used for the purposes of calculating Index-Based Rate Adjustments and does not constitute a guarantee of profit to the Franchisee. Franchisee's Profit Allowance for the purposes of Index-Based Rate Adjustments is calculated as af function of Franchisee's current year cost projection for Collection Services. For 2025, Franchisee's Profit Allowance is 9% of the cost projection for Collection Services andi in 2026 and thereafter, Franchisee's Profit Allowance shall be 10% of the cost projectioni for Collection Services. Franchisee's 2025 cost projection for Collection Services is $174,605; therefore, Franchisee's Profit Allowance for 2025 is $174,605 times 9%, rounded to the nearest dollar, equaling $15,714. Using the first example from Section 2.A above, if Franchisee's 2026 cost projection is $183,335 (corresponding to a 5% CPI Adjustment), Franchisee's 2026 Profit Allowance for the purposes of calculating Index-Based Rate Adjustment shall be $18,334. Likewise, and using the second example from Section 2.A above, if Franchisee's 2026 cost projection is $178,097 (corresponding toa2% CPI Adjustment), Franchisee's 2026 Profit Allowance for the purposes of calculating Index- Franchisee pays thel District al Franchise Fee of 10% of Franchisee's gross revenues received from Customers in the District. For the purposes of Index-Based Rate Adjustments, the Franchise Fee isc calculated as 10% of Franchisee's annual Total Cost Projection, per Section 2.E below, rounded tot the nearest dollar. For 2025, Franchisee's annual Total Cost Projection is $321,117, yielding Franchise Fee component of $32,112. Actual Franchise Fee payments made by Franchisee to District shall be calculated as at function of Franchisee's gross revenues received from Customers int the District and may differ from the amount used in calculating adjustments to the Maximum Starting with the 2027 Index-Based Rate Adjustment, the difference between the Franchisee's annual Total Cost Projection and the Franchisee's actual annual total billings to Customers in the District shall be included in the annual Index-Based Rate Adjustment as an Annual Revenue For example, for the 2027 Index-Based Rate Adjustment, the difference between Franchisee's 2025 Total Cost Projection and Franchisee's total 2025 billings to Customers in the District shall bei included in the 2027 annual Total Cost Projection. By way of example, ifFranchisee's 20251 total billings to Customers in the District is a shortfall of 1% (-$3,211) then $3,211 will be added to Franchisee's Total Cost Projection for 2027. Conversely, if Franchisee's 2025 total billings to Customers in the District is a surplus of 1% (+$3,211) then $3,211 will be subtracted from Table 2, on the following page, provides an example of the case in which there is a 1% shortfall of Based Rate Adjustment shall be! $17,810. . Calculation of Franchise Fee Service Rates. D. Calculation of Annual Revenue Reconciliation Reconciliation. Franchisee's Total Cost Projection for 2027. Page 3 of10 Appendix 1 Annual Rate Adjustment Methodology billed revenues in 2025, which is added to the Total Cost Projection in 2027. The table shows a continuation of 1% shortfalls being added in 2028 and 2029 for example purposes only, and assumes the CPI adjustment to Collection Services, and Post-Collection Services at the 5% cap. Table 2a below, provides an example of the case in which there is a 1% surplus of billed revenues in2 2025, which is added to the Total Cost Projection in 2027. Thet table shows a continuation of 1% surpluses being added in 2028 and 2029 for example purposes only, and assumes the CPI adjustment to Collection Services and Post-Collection Services at the 5% cap. Table 2. - Example Revenue Reconciliation of-1% Annually 2025 $174,605 $15,714 $98,686 $32,112 N/A $321,117 2026 $183,335 $18,334 $103,620 $33,921 N/A $339,210 5.63% 2027 $192,502 $19,250 $108,801 $35,974 $3,211 $359,738 6.05% 2028 $202,127 $20,213 $114,241 $37,775 $3,392 $377,748 5.01% 2029 $212,234 $21,223 $119,953 $39,667 $3,597 $396,675 5.01% Collection Services Profit Allowance Post-Collection Services Franchise Fee Revenue Reconciliation Example Total Cost Projection Indexed Rate. Adjustment Table 2a = Example Revenue Reconciliation of +1% Annually 2025 $174,605 $15,714 $98,686 $32,112 N/A $321,117 2026 $183,335 $18,334 $103,620 $33,921 N/A $339,210 5.63% 2027 $192,502 $19,250 $108,801 $35,260 $(3,211) $352,602 3.95% 2028 $202,127 $20,213 $114,241 $37,021 $(3,392) $370,210 4.99% 2029 $212,234 $21,223 $119,953 $38,876 $(3,526) $388,760 5.01% Collection Services Profit Allowance Post-Collection Services Franchise Fee Revenue Reconciliation Example Total Cost Projection Indexed Rate Adjustment Significant, unexpected increases or decreases in revenue may be included or excluded from the Annual Revenue Reconciliation if deemed reasonable by the parties. As a one-time exercise, the Franchisee may request to review the entirety of its revenue earnings with the District as a check- int to evaluate alignment with its revenue forecast and conditions outlined ini this exhibit. By no later than September 30, 2025, the Franchisee shall provide the District with documentation of actual to-date receipts or billings, accompanied by an analysis of all corresponding service trends. Upon receipt of these materials, the District and the Franchisee shall engage in a good-faith meet-and- Page 4 of10 Appendix 1 Annual Rate Adjustment Methodology confer process to discuss and determine an appropriate resolution, which may include a rate Franchisee's: annual Total Cost Projection shall be the sum of the resultant values from Section 2.A through 2.D above. For 2025, the Total Cost Projection is $321,117. Table 3 below demonstrates the 2026 Total Cost Projection ift the percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value ending June of 2025 is 5%. Table 4, on the following page, demonstrates the 2026 Total Cost Projection in the percentage change in the average 12-month CPI value ending June 2026 compared to the average 12-month CPI value adjustment in January 2026i if necessary. E. Calculation of Total Cost Projection ending June of 2025 is 2%. Table 3 -2026 Total Cost Projection at 5% CPI Value for 2026 2025 2026 Collection Services Profit Allowance Post-Collection Services Franchise Fee Total Cost Projection $174,605 $15,714 $98,686 $32,112 $321,117 $183,335 $18,334 $103,620 $33,921 $339,210 Table 4. -2 2026 Total Cost Projection at 2% CPI Value for 2026 2025 2026 Collection Services Profit Allowance Post-Collection Services Franchise Fee Total Cost Projection $174,605 $15,714 $98,686 $32,112 $321,117 $178,097 $17,810 $100,659 $32,952 $329,518 F. Calculation of Annual Index-Based Rate Adjustments minus 100%, rounded to the nearest hundredth of a percent. The Index-Based Rate Adjustment shall be the calculated as function of the Franchisee's forthcoming annual Total Cost Projection divided by the then current year Total Cost Projection, For example, taking the results shown in Table 3, on the prior page, the Index-Based Rate Adjustment for 2026 would be $339,210, divided by $321,117, minus 100%, yielding a 5.63% Page 5 of10 Appendix 1 Annual Rate Adjustment Methodology adjustment to the Maximum Service Rates effective January 1, 2026. Using the results of Table 4, above as an example, the Index-Based Rate Adjustment for 2026 would be $329,518, divided by $321,117, minus 100%, yielding a 2.62% adjustment to the Maximum Service Rates effective This Index-Based Rate Adjustment calculation described herein shall repeat in 2027, 2028, and 2029, with the addition of the Annual Revenue Reconciliation amounts calculated pursuant to Section 2.D oft this Exhibit. Rate adjustments shall be effective on January 1stofe each year (unless otherwise agreed to in writing by the parties) and any delay in rate change approval not caused by Franchisee will result in additional adjustments sO that all required revenues are billed within the rate year. Any delay in rate change approval that is caused by Franchisee shall not result in January 1, 2026. additional adjustments corresponding with the delay in approval. Section 3 Cost-Based Rate Adjustments Franchisee or District shall have the right to request a Cost-Based Rate Adjustment effective January 1, 2030. Franchisee's request for Cost-Based Rate Adjustment in 2030 shall be requested in writing on or before January1 15, 2029: and District's request for Cost-Based Rate Adjustmenti in 2030: shall be requested in writing on or before January 31, 2029. To the extent possible any District request for Cost-Based Rate Adjustment shall be coordinated with the other agencies in San Luis Obispo County that follow the rate adjustment methodology described in this Exhibit, with all such agencies opting to request Cost-Based Upon request by either party for Cost-Based Rate Adjustment, Franchisee shall prepare and submit financial records and calculations to the District in accordance with this Section by April 30, 2029. District shall have the right to review Franchisee's financial records related to the Cost-Based Rate Adjustment and calculations of Cost-Based Rate Adjustment for mathematical accuracy and adherence to the terms and conditions of this Section. District shall prepare written findings regarding adjustments to the Franchisee's calculations of Cost-Based Rate Adjustment that are required for mathematical accuracy and adherence to the terms and conditions of this Exhibit on or before June 30, 2029. District shall make every effort to seek Board of Directors authorization of Cost-Based Rate Adjustment prior to August 30, 2029. Ifneither party requests a Cost-Based Rate Adjustment in writing as specified above, then an Index- Based Rate Adjustment shall be applied for adjustments to Maximum Service Rates effective January 1, Franchise or District shall have the right to request subsequent Cost-Based Rate Adjustments no more frequently than every five (5) years following the prior Cost-Based Rate Adjustment. For example, if a Cost-Based Rate Adjustment is requested as stipulated in above in. January, 2029 (and effective January 1,2 2030) then the next Cost-Based Rate Adjustment may not be requested by either party until January, 2034 (for effectiveness in 2035). The schedule from the following paragraph would also apply: Franchisee would prepare and submit financial records and calculations by April 30, 2034, District would prepare written findings regarding adjustments to Franchisee's calculations of Cost-Based Rate Adjustment that are required for mathematical accuracy and adherence tot the terms and conditions of this Exhibit by. June 30, 2034, and District would make every effort to seek Board of Directors authorization of Cost-Based Notwithstanding the above, nothing shall prevent the parties from mutually agreeing to conduct Cost- Based Rate Adjustments in other years (i.e., years other than 2030 and 2035), provided that both parties agree in writing to waive the five (5); year limitation on Cost-Based Rate Adjustments expressed herein. If neither party requests Cost-Based Rate Adjustments in subsequent years pursuant to the five (5) year schedule described above, then Index-Based Rate Adjustments shall be applied for adjustments to Maximum Service Rates in such years, subject to the terms and conditions of Section 2 of this Exhibit. Franchisee shall provide all financial information and supporting documentation required by this review in af format acceptable to District (or District's designated consultant) in a timely manner. Franchisee shall not require District (or District's designated consultant) to review any such documents at Franchisee's Rate Adjustment effective ini the same rate year 2030 and subject to the terms and conditions of Section 2 of this Exhibit. Rate Adjustment prior to August 30, 2034. Page 6 of1 10 Appendix 1 Annual Rate Adjustment Methodology worksite but shall instead allow for all required information and supporting documentation to be provided to District (or its designated consultant) via physical mail,e-mail, or any other delivery method approved Cost-Based Rate Adjustments shall be prepared and calculated in accordance with the steps described by District. below. A. Projection of Collection Services and Post-Collection Service Costs Franchisee shall prepare financial records and calculations of Cost-Based Rate Adjustment using audited financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) for Franchisee's immediately preceding three (3) fiscal years. Such financial records and calculations shall include Franchisee's projected costs for Collection Services and Post-Collection Services as well as Franchisee's projected gross revenues at then-current Maximum Service Rates for thei forthcoming year (e.g., 2030 at the earliest). Franchisee shall promptly assemble, provide, and submit such information that is reasonably necessary to support the assumptions made by the Franchisee with regard to the assumptions underlying thet forecast. Upon submission of suchi information, the District holds the ability to make appropriate changes for non-allowable costs, large unsupported variances in cost projections including but limited to corporate transactions and allocations, large variances in inter-company and related party transactions and allocations, unjustifiable variances in any cost category, non-conformance with agreed upon depreciation terms, non- conformance agreed upon profit allowances, and other customary and reasonable adjustments as detailed in the Agreement. Cost projections for Collection Services and Post- Collection Services prepared by Franchisee must be justifiable, supportable with financial information, and provide accountability for all expenditures. In preparing such cost a. Revenues at current Maximum Service Rates for the then-current year, including delineation of revenues by sector (single-family residential VS. commercial and multi- family) and with details of the number of subscribers by type within each sector. b. Projected costs of Collection Services for the then-current year and the forthcoming year, with comparison to and explanation of any variances to actual costs for Collection Services in the prior three (3) fiscal years. Costs for Collection Services include labor, corporate overhead, depreciation (with rolling stock at 10-year depreciation lifespan), and general and administrative costs and shall be delineated as per the primary cost categories included in Franchisee's Audited Financial Statements. Franchisee must provide documentation of, and explanationfor, material variances in any. cost category. Projected costs for the forthcoming year shall be based on Franchisee's actual costs per Audited Financial Statements and escalated byt the CPIAdjustment described in Section. 2.Ad of this Exhibit, with the exception that Franchisee may adjust projections to account for other documentable changes in costs. Corporate overhead costs shall be limited to be less than 4% of Franchisee's Total Cost Projection for the forthcoming year and Franchisee must provide documentation: andj justification for any amounts of Corporate Overhead: above 3% of Franchisee's Total Cost Projection for the forthcoming year. District retains the right to make appropriate adjustments to cost projections to cost categories for which Franchisee does not or cannot provide adequate documentation and explanation of C. Projected costs of Post-Collection Services for the then-current year and the forthcoming year, with comparison to and explanationofany variances to actual costs for Collection Services in the prior three (3) fiscal years. Costs for Post-Collection Services include landfill disposal, organics processing, recyclables processing and marketing, related-party transportation, andr related-party rent and shall be delineated projections, Franchisee shall assemble and submit its forecasts of: material variances compared to prior years. Page 7 of10 Appendix 1 Annual Rate Adjustment Methodology as per the primary cost categories included in Franchisee's Audited Financial Statements. Franchisee must provide documentation of, and explanation for, material variances in any cost category. Projected costs for the forthcoming year shall be based on Franchisee's actual costs per Audited Financial Statements and escalated byt the CPI Adjustment described in Section 2.A of this Exhibit, with the exception that Franchisee may adjust projections to account for other documentable changes in costs. District retains the right to make appropriate adjustments to cost projections to cost categories for which Franchisee does not or cannot provide adequate documentation and explanation of material variances compared to prior years. d. Franchisee shall not include any non-allowable costs in its cost projections for Collection Services or Post-Collection Services. Non-allowable costs include but are Entertainment and non-work related travel expenses, unless authorized in ii. Advertising for services not within the scope of this Agreement or outside of the service area of Avila Beach Community Services District. iv. Liquidated damages assessed under this Agreement. not limited to: advance by District. lii. Fines or penalties of any nature. V. Federal or State income taxes. vii. Charitable or political donations. vi. Profit sharing payments not related to an IRS approved pension program. viii. Attorneys' fees and other expenses incurred by Franchisee in any court proceeding in which District and Franchisee are adverse parties, unless ix. Attorneys' fees and other expenses incurred by Franchisee in any court proceeding in which Franchisee's own negligence, violation of law or regulation, or other wrongdoing, is in issue and occasions part of the attorneys' fees and expenses claimed, provided, however, such attorneys' fees will be allowed to the extent Franchisee can demonstrate they were reasonable and necessary and a cost of doing business, and were not the result of any intentional or willful misconduct by Franchisee or its employees; and attorneys' fees and expenses incurred by Franchisee in a court proceeding in which the legal theory or statute providing a basis of liability against Franchisee also provides for separate strict liability for District arising from the action ofi its citizens or ratepayers (such as in a CERCLA lawsuit). X. Payments to related party entities for products or services (other than lease expense, calculated as provided below), in excess of the fair market value for those products or services. For purposes of this Agreement, related party expenses are those resulting from transactions between Franchisee and another company (companies) that has (have) common ownership or Franchisee is the prevailing party in said proceedings. management control. e. Franchisee's audited financial statements, and any other documentation as deemed necessary bythe! District, willl be reviewed to determine Franchisee's cost projections for each of thet foregoing categories during the year involved. Districtw will use thet financial statements to determine that costs have actually been incurred and have been District may adjust the actual costs in two ways: (1) to exclude any non-allowable assigned to the appropriate category. Page 8 of10 Appendix 1 Annual Rate Adjustment Methodology costs, set out above, and (2) to exclude and/or reduce any costs that were actually incurred but which are not reasonable and necessary in keeping with industry standard best practices. B. Calculation of Profit Allowance to the nearest dollar. C. Calculation of Franchise Fee applicable year as appropriate. Franchisee's Profit Allowance shall be 10% of the cost projection for Collection Services, rounded Calculation of Franchise Fee shall be calculated in accordance with Section 2.C, above, for the Calculation of Annual Revenue Reconciliation shall be calculated in accordance with Section 2.D, Calculation of Total Cost Projection shall be calculated in accordance with Section 2.E, above, for The Cost-Based Rate Adjustment shall be the calculated as function of the Franchisee's forthcoming annual Total Cost Projection divided by the then current year Total Cost Projection, minus 100%, rounded to the nearest hundredth of a percent. This is the same calculation described in Section 2.F, above. The resultant percentage shall be applied to the then-current Maximum Rate adjustments shall be effective on January 1st of each year (unless otherwise agreed to in writing by the parties) and any delay in rate change approval not caused by Franchisee will result in additional adjustments so that all required revenues are billed within the rate year. Any delay in rate change approval that is caused by Franchisee shall not result in additional adjustments D. Calculation of Annual Revenue Reconciliation above, for the applicable year as appropriate. E. Calculation of Total Cost Projection the applicable year as appropriate. F. Calculation of Cost-Based Rate Adjustment Service Rates and be effective January 1 of the forthcoming year. corresponding with the delayi in approval. Section 4 Annual Audited Financial Statements Franchisee shall annually prepare Audited Financial Statements in accordance with Generally Accepted Accounting Principles (GAAP) for its operations in the San Luis Obispo County region. Franchisee shall provide District with copies of the annual Audited Financial Statements upon request and with any Cost- Based Rate Adjustment submittal. Section 5 Extraordinary Adjustments Except as provided herein, Franchisee may not request adjustments to Maximum Service Rates in years during which Index-Based Rate Adjustments are scheduled to be applied and must follow the timeline described in Section 3. Notwithstanding: the above, Franchisee may request extraordinary adjustments to Maximum Service Rates due to changes in law affecting collection operations, including for compliance with the California Air Resource Board's (CARB's) Advanced Clean Fleet (ACF) electrification mandate. The District may, but is not obligated to, consider requests for extraordinary adjustment to Maximum Service Rates due to changes in law affecting Post-Collection Services. Requests for extraordinary changes in Maximum Service Rates are subject to good faith negotiations between District and In the event of any Change in Scope or Change in Law (each as described below) that results in an material increase or decrease in Franchisee's costs or revenues, in the event of an Extraordinary Cost Increase (as defined below), or in the event of any Change in Fees (as described below), an appropriate Franchisee. Page 9 of1 10 Appendix 1 Annual Rate Adjustment Methodology adjustment will be made to the Maximum Service Rates in order to compensate, to the maximum extent possible, for suchi increase or decrease in costs, revenues or Fees, commencing from thel Effective Date(s) such increase or decrease first occurs. Any adjustment to Maximum Service Rates due to a Change in Scope, a Change in Law or an Extraordinary Cost Increase shall be in the reasonable discretion of the A. "Change in Scope" shall mean any change in the services provided by the Franchisee under the B. "Change in Law" shall mean the enactment, adoption, promulgation, issuance, modification or written change in any law, regulation, order or judgment of any governmental body that affects the Franchisee's performance of services under the. Agreement including, without limitation, the C. "Change in Fees" shall mean any change in franchise fees, vehicle impact fees and other fees charged to the Franchisee byt the District connection with the services provided by thel Franchisee under the Agreement the cancellation of any existing fees, and the adoption of any newf fees. D. "Extraordinary Cost Increase" shall mean a substantial increase in the Franchisee's operating or capital costs or expenses that is outside of the Franchisee's control but not due to a Change in E. "Effective Date" shall mean the date in which the Franchisee notifies the District of the reasons fort the cost estimate associated with a Change inLaw, Change in Fees, and/or Extraordinary Cost Increase or when the Franchisee begins incurring costs for the Change in Law, Change in Fees, Int the case of a Change in Scope, a Change in Law or an Extraordinary Cost Increase, the Franchisee shall provide the District with projected operational, cost and revenue data reflecting the entire financial effect of such Change. The District reserves the right tor require that the Franchisee supply any additional operational, cost and revenue data, or any other information it may reasonably need, to ascertain the appropriate financial impact of the Change and any necessary adjustment to Maximum Extraordinary adjustments to Maximum Service Rates for a qualifying Change in Scope or Change in Law, for a Change in Fees, ori for an Extraordinary Cost Increase shall take effect as of the beginning of the next year and will include all impacts oft the extraordinary adjustment from the Effective Date of the impact; provided, however, that, in the case of any Change in Fees charged by the District, the Extraordinary adjustment shall take effect as oft the Effective Date of such Change in Fees. The underlying service, cost, revenue or Fee changes supporting any rate adjustment under this Section 5 will be added to the appropriate category under Sections 2 and 3 above for purposes of future cost District. Agreement whether proposed by the Franchisee or by the District. issuance of final regulations under existing laws. Scope or Change in Law. or Extraordinary Cost Increase, whichever is later. Service resulting from such Change. projections. Page 10 of10 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: FROM: DATE: Board of Directors Brad Hagemann, General Manager/ NN January 14, 2025 SUBJECT: Water Tank Inspection Report Recommendation: Discussion: Receive Report and Provide Direction to Staff as Needed Onl December 12,2024, Advanced? Technical Services (ATS)inspected thel District's Water Tank #1. An excerpt from the Inspection Report, including findings and recommendations is provided as an attachment to this staff report. Staff has already started implementing several of the recommendations that we can accomplish in-house. We will retain consultants and contractors to accomplish the other recommendations, the most significant (costly) being recoating of the exterior of the tank. The approved FY 2024/25 Capital Improvement Program includes funding for Inspection and Re-coating ofTank #1". Staff intends to work with ATS to prepare the specifications and bid documents for re-coating the tank. We will likely schedule the work for the fall of 2025, when seasonal water demand is low and before the rainy season. This is an informational item for the Board. No formal action is needed. Attachment: Excerpt from thel Inspection Report DIVE INSPECTION REPORT FOR AVILA BEACH COMMUNITY SERVICES DISTRICT'S WATER STORAGE TANK #1 DECEMBER 12TH, 2024 ATS Advantage Technical Services, Inc. www.ats-slo.com I License #96111 DIVE INSPECTION REPORT FOR WATER STORAGE TANK: #1 DECEMBER 12"H, 2024 REVISION DATE: N/A AVILA BEACH COMMUNITY SERVICES DISTRICT'S Pursuant to the American Water Works Association's Manual of Water Supply Practices, Steel Water-Storage Tanks, M42 and California Business and Professions Code section 6735, the engineering report contained herein has been prepared by or under the direction of the following Registered Engineer: ADVANTAGE TECHNICAL SERVICES, INC. 6661 FERN CANYON LANE SAN LUIS OBISPO, CA 93401 805-595-2282 UNDER THE SUPERVISION OF: WILLIAM D. BELLIS, P.E. Registered Civil Engineer, CA C55334 BL OFESSA C55334 EXP. tE//zez4 Avila Beach Community Services District- - Tank1 1 EXECUTIVE SUMMARY Advantage Technical Services, Inc. (ATS) 1 inspected the Avila Beach Community Services District's Tank #1 on December 12nd, 2024. Al light layer of sediment and rust particles was removed and the internal and external conditions ofthe tank were examined. Advantage Technical Services, Inc. (ATS) performed the inspection and evaluation. The tank interior was inspected above and below the water line using sanitary diving procedures. The following is a summary of what appear to be the most significant elements: 1. Cathodic protection hand-hole covers have corroded to the point where they do not provide the required sanitary seal toj prevent rain from entering the tank. They should 2. The exterior shell coatings are: in fair-poor condition with numerous areas of significant corrosion present on the roof, chime and some appurtenances. 3., The interior coatings are in good condition overall in the submersed areas. Problem areas are present on the center support and roof rafters where coatings are cracking and peeling. Significant corrosion is] present where coatings have failed. 4. The roof vent and other appurtenances appear to be in normal operating condition and in conformance with health regulations. Serious corrosion, however, has damaged be replaced as soon as possible. thei roof vent hood attachment brackets. SCOPE, OBJECTIVE, ANDLIMITATIONS An inspection was completed on the interior and exterior oft the steel potable water storage ATS divers have experience and certifications that meet or exceed the requirements of the American Water Works Association Manual of Water Supply Practices, Steel Water-Storage Tanks, M42, AWWA C652 Standard for Disinfection of Water Storage Facilities and OSHA regulations for technical or commercial diving. Additionally, our team's certifications or licenses include a Registered Professional Engineer, AWS Certified Welding Inspector, National Association of Corrosion Engineers Level III Coating Inspector, and American Society ofNondestructive Testing Level III Engineer. With these applicable credentials and combined experience of over five hundred tank dive inspections, our team leads the industry- The diver's air supply is supplied by air hoses from the surface using either a dive compressor or bottled air. The diver's air supply system offers triple redundancy; - including a self-contained system maintained in the diver's possession and control. A full-time communication system supports documentation of findings and operational or emergency reservoir by the. ATS tank inspection team. communications. Avila Beach Community Services District- - Tank 1 All disinfection procedures are in accordance with the American Water Works Association Standard for Disinfection of Water-Storage Facilities (ANSI/AWWA C652). The photographs provided within this report display representative views and subsequent analysis. Digital video, also included, provides additional documentation of the conditions. The observations made during the inspection, and included in this report, providea reasonable evaluation oft the tank conditions at the time oft the inspection. Considerations of safe access and reasonable care were observed in making and reporting the observations. Latent defects or conditions found during subsequent cleaning, inspections, or other work at the tank must be brought to the Engineer's or Owner's attention. OBSERVATIONS General Tank Data Media Stored: Potable water Diameter: 70' Height: 27' (top of] knuckle) Foundation Type: Ground supported welded steel reservoir Water level during inspection: Approximately 22' The concrete ring footing foundation is in good condition overall. Minor cracking is present but these appear to be normal and adequately tight to prevent associated damage or significant rebar corrosion. Exterior Shell present. The exterior shell coatings are in fair to poor condition. A few areas of general corrosion are The most significant corrosion was found on the chime which is the bottom extension at the base oft the shell. The corrosion on the chime appears to have started from the inaccessible Coatings are aging and heavy chalking is present. Chalking is a powdery, friable layer on the surface ofa coating. Iti is normally caused by exposure to UV light and weathering. The area on the underside oft the bottom and progressed from there. degree of chalking indicates the level of erosion of the paint film. 2 Avila Beach Community Services District-T Tank 1 Exterior Roof The exterior roof coatings are in fair to poor condition toj poor with chalking and some serious localized corrosion. Corrosion is limited to less than 0.2% oft the roofarea but some of the locations appear tol have significant metal loss. Interior Bottom No rust points were noted on the bottom. An area near the outlet which is approximately 4 ft. A thin covering (1/8 - 1/4inch) ofvery light brown material was present over approximately 90% of the bottom area. Sedimentation wasi more even and slightly deeper on the southern portion oft the tank with a lighter and more patterned covering between the outlet and the inlet. The sediment was removed by the diver with specialized vacuum equipment for water x4ft. has scattered blisters ranging in size from 3/8 in. to 3/4 in. diameter. tanks. Interior Shell Interior shell plate is in good condition. Epoxy coatings are protecting the shell well. An area ofblisters on the shell and manway neck was observed on the eastern manway. The blisters were un-broken and no associated corrosion was present. The blisters were left intact by the diver inspector Interior Roof Plate The interior roof plate is in good condition with minor rust staining from inaccessible areas but no visible coating failures. Roof Structure Ther roofis supported by a single center column with wide flange girders and ai round tubular Most areas of coatings and structure itself are in good condition but areas of cracking and disbondment of the coatings are present on many rafters. Most oft the significant corrosion is present at and adjacent to the inaccessible areas at the rafter tops and the faying surfaces at center column. Thel base plate is the welded type. the center support. Cathodic Protection System The elements of the sacrificial anode cathodic protection system appeared tol be intact and operating normally. Very little wastage has occurred on the sacrificial anodes due to the integrity oft the submersed internal coatings. The reference cell appeared to bei in normal operating condition. 3 Avilal Beach Community Services District- - Tank 1 The hand-hole covers have serious corrosion damage and some are: no longer effective in preventing rain water: from entering the tank. Appurtenances Level Gage: Gauge board brackets, roof hardware, cable and float all appear to bei in fair to good condition and the gage is operating normally. The gauge board tape is faded and Exterior Ladder and Cage: This coatings in this area are in fair to poor condition overall with corrosion present in scattered areas (approximately 5% ofs surfaces corroded). Adequate clearance is provided to the tank shell. Ladder rung spacing is 12i inches. Rung diameter is Roof Guardrail: The guardrail coatings are inj poor condition overall but with scattered RoofHatch: One lockable square roofl hatch is located at the top oft the interior ladder. The hatch is in fair condition. Some minor areas of chipping and associated corrosion are RoofVent: The screen is "bug resistant". Significant corrosion damage is present on the Overflow: The visible exterior of the overflow isi in fair condition. The internal areas oft the overflow weir were: not accessible. Significant corrosion is visible on the weir. Outlet: The outlet penetration in the tank shell appeared to bei in normal condition. Roof Inlet and Enclosure: Areas on and around the roof mounted box have signifiçant Manways: Two shell single bolt (internal swinging) manways are present. The manways were in good condition overall on the interior. An area ofl blistering was noted on the eastern illegible. X4inch. Rung width is 16 inches per regulatory requirements. general corrosion. present. hardware that secures the vent hood in place. concentrated corrosion. The inlet piping is in fair condition. manway neck. No significant corrosion was] present. RECOMMENDATONS The following recommendations are based on our experience as engineers and inspectors with regard to the best industry practices used by both public and private tank owners. The intent is to provide information that will likely help lower risks, optimize water quality and increase long term value for the tank owner(s). Our scope of work does not include a safety audit or evaluation but we are making recommendations where we have noted potential 4 Avila Beach Community Services District- Tank 1 issues. The owner's insurance provider or safety consultant should be consulted for a review 1. For the purpose of long-term planning, we estimate the remaining life of the interior coating system on this tank to be approximately 10-15 years depending on the level of maintenance in the interim. This estimate is based on experience with tank coating systems in this area and the condition of the coatings on this tank. Commentary: The submersed areas are free of significant corrosion. Some areas oft the rafters have serious corrosion but most of these appear tol be associated with inaccessible areas on the rafter tops. These inaccessible areas are aj product oft the design details and recoating oft the inaccessible areas such as the tops oft the rafters is generally 2. ATS recommends that the District consider recoating the exterior within the next 3 years. Aged coatings, coastal exposure (high corrosion rates of unprotected surfaces), significant corrosion and overall practicality ofr recoating appear to support coating the exterior prior to the interior. Caulk the chime to concrete interface after recoating 3. Don not allow personnel to access the roofw without proper fall protection. Instruct and document the training of personnel on procedures for working safely at elevated locations and the use of fall protection prior to working on tank roofs. Include specifics relating the use ofavailable fall protection anchor points and access to areas 4. Install a self-closing swinging gate to protect the ladder opening on the roof. 5. Replace gauge board tape to restore the ability to read tank level. 6. Replace cathodic protection system hand-hole covers with stainless steel type. Gaskets should be replaced too. ATS recommends grommet type gaskets. 7. Replace the roofvent hood attachment hardware. The corrosion has reduced the 8. Provide annual inspections oft the exposed side oft the tank shell to bottom connection pursuant to AWWA D100-21. Weeds, dirt, and foreign materials should be removed from this area to eliminate or reduce trapped moisture and associated corrosion. 9. Provide inspection oft the interior and exterior along with corrective maintenance at the recommended interval of every three years pursuant to AWWA D100-21 (Forward, Section III, pg. XX). As in the case of this work, combining the internal inspection with sediment removal will provide optimal inspection conditions and help of the safety features oft this facility where desired. considered impractical. the exterior. near the roof edge. structural integrity oft the vent hood attachment. maintain water quality. 5 Overall view oft the tank. 620 ( 0 E 36 d A36 Tank nameplate. 6 Advantage Technical Services, Inc. 805-595-2282 Chiorine (ppm) 100 200 300 The disinfecting solution is tested to verify that it exceeds the 200 ppm free chlorine concentration level. Diver and equipment are disinfected with the chlorine solution just prior to entry. This procedure is pursuant to AWWA disinfection standards for potable water diving (stock photo). 13 Advantage Technical Services, Inc. 805-595-2282 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: FROM: DATE: Board of Directors Brad Hagemann, General Mmagerkwy January 14, 2025 SUBJECT: Board Committee Appointments Recommendation: Board President Discuss and Recommend Committee Appointments for 2025 Discussion: Committee Appointments At the beginning oft the calendar year, it is customary for the Board President to appoint Listed below are the CSD standing committees for the 2024 calendar year; additionally, members of the Board to committees for the coming year. Ad-Hoc committees may be designated, as necessary. Standing Committees Finance: Personnel: Facilities: Drought: Directors Kristin Berry, Ara Najarian Directors Pete Kelley, John Janowicz Directors Pete Kelley, Howie Kennett Directors Ara Najarian, John Janowicz AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: FROM: DATE: Board ofl Directors Brad Hagemann, General Mmmeww January 14, 2025 SUBJECT: 2025 Board Meeting Schedule Recommendation: Receive Staff Report and Provide Direction to Staff as Needed Discussion: The Board By-Laws state that the Board conducts Regular Meetings on the second Tuesday of each month. Depending on needed action items, the Board typically cancels the July and December Regular Meetings. The Board may schedule Special Meetings, as needed. Fors scheduling and calendaring purposes, staffwanted toj provide a suggested 2025 Board Meeting schedule, that includes three changes to the "Regular" meeting schedule. The March and June suggested changes are proposed to accommodate staff's personal commitments. The November suggested change is proposed since the second Tuesday in November falls on the Veterans Day Holiday. Thej proposed 2025 meeting schedule is provided below: Regular Meeting Regular Meeting Special Meeting Regular Meeting Regular Meeting Special Meeting Regular Meeting Regular Meeting Regular Meeting Regular Meeting Special Meeting Regular Meeting January 14, 2025 March 18, 2025 April 8, 2025 May, 13, 2025 June 24, 2025 July 8, 2025 August 12, 2025 October 14, 2025 Second Tuesday Third Tuesday Second Tuesday Second Tuesday Fourth Tuesday Second Tuesday Second Tuesday Second Tuesday February 11, 2025 Second Tuesday (Typically cancelled) September 9, 2025 Second Tuesday November 18, 2025 Third Tuesday December 9, 2025 Second Tuesday (Veterans Day Conflict) (Typically cancelled)