AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 Meeting Room and Office - 100 San Luis Street, Avila Beach Telephone (805) 595-2664 FAX (805) 595-7623 e-mail: vlacsd@gmail.com SPECIAL BOARD MEETING 1 PM Tuesday, March 18th, 2025 STAFF AND PUBLIC MAY PARTICIPATE IN THIS MEETING IN PERSON AT THE ADDRESS ABOVE OR, VIA TELECONFERENCE, AND/OR ELECTRONICALLY. LOOM MEETING: htps/as0web.zom.s4111787571 Meeting ID: 411 178 7571 Password: No Password Required. BY PHONE: 1-669-900-9128 Director Najarian will be attending the meeting via Zoom from: 1441 Florida Ave, Modesto, CA 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. 1. CALL TO ORDER: 1:00 P.M. 2. ROLL CALL: Board Members: Pete Kelley, President John Janowicz, Vice President Kristin Berry, Director Howie Kennett, Director Ara Najarian, Director 3. PUBLIC COMMENT Members ofthe public wishing to comment or bring forward any items concerning District operations which do not appear on today's agenda may address the Board now. Please state name and address before addressing the Board and limit presentations to 3 minutes. State law does not allow Board action on items not appearing on the agenda. 4. INFORMATION AND DISCUSSION ITEMS County Reports 1. SLO County Sherifi. Department 2. CalFire/County Fire Department Reports on Attended Conferences, Meetings, and General Communications of District Interest 5. PUBLIC COMMENT ON CLOSED SESSION ITEM 6. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - 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 SESSION 7. 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 of February 11th, 2025, Regular Board Meeting B. Monthly Financial Review for February 2025 C. General Manager and District Engineer Report D. Water and Wastewater Operations Reports for February 2025 E. Consideration of Request from Avila Beach Fish & Farmers' Market for Sponsorship 8. DISCUSSION OF PULLED CONSENT ITEMS At this time, items pulled for discussion from the Consent Agenda, if any, will be heard. 9. BUSINESS ITEMS: Items where Board action is called for. A. Election ofLAFCO Special District Representative Seat Selections (Action Required: Receive Staff Report and Select a Candidate to Serve on LAFCO through December 2026 and December 2028) B. Election of IWMA Special District Representative Seat Selection (Action Required: Receive Staff Report and Select a Candidate to Serve on IWMA through December 2028) C. Consider Approval of Amendment #1 to the August 25, 2016, Amended and Restated Solid Waste Collection Agreement Between South County Sanitary Service, Inc., and Avila Beach Community Services District (Action Required: Receive Staff Report and Consider Adoption ofthe Amendment or Provide Other Direction to Staff) 10. COMMUNICATIONS CORRESPONDENCE At this time, any Director, or Staff, may ask questions for clarification, make any announcements, or report briefly on any activities or suggest items for future agendas. ADJOURN The next Regular Board meeting is scheduled for Tuesday, April 8th, 2025 at 1:00 P.M. Any writing or document pertaining to an open session item on this agenda which is distributed to most of the Board after the posting of this agenda will be available for publici inspection at the time the: subject writing or document is distributed. The writing or document will be available for public review in the District Administration Office, 100 San Luis Street, Avila Beach, CA during normal business hours. Consistent with the Americans with Disabilities Act and California Government Code Section 54954.2 requests for disability related modification or accommodation, including auxiliary aids or services may be madel by a person with a disability who requires thei modification or accommodation in order toj participate at the above referenced public meeting by contacting the District at 805-595-2664. MINUTES OF BOARD OF DIRECTORS MEETING Avila Beach Community Services District Tuesday, February 11th, 2025 1:00 P.M. 1. CALL' TO ORDER President Kelley called the meeting oft the Board of Directors ofthe Avila Beach Community Services District, to order at 1:02 P.M. on the above date, in the Avila Beach Community Services District Building, 100 San Luis Street, Avila Beach, California. 2. ROLL CALL Board Members Present Pete Kelley Howie Kennett John Janowicz Kristin Berry Board Members Present via Zoom: Ara Najarian Board Members Absent: None Staff Present: Brad Hagemann, General Manager Kristi Dibbern, Office Manager Operations: Shawn Powell, Chief Plant Operator Legal Counsel via Zoom: Craig Parton from Price, Postal, & Parma Shannon DeNatale Boyd 3. PUBLIC COMMENTS - None 4. INFORMATION AND DISCUSSION ITEMS A. County Reports Sheriff's Report: Sheriff Abbas reported 32 calls for service during the month of January. Deputies conductedinvestigated eleven preventive patrol stops, seven general disturbances, and five suspicious circumstances. The Sheriff's Auxiliary Volunteer Patrol (SAVP) program was established to assist the San Luis Obispo County Sheriff's Office in meeting its law enforcement mission. Citizen volunteers trained in a variety of law enforcement topics, such as observation skills, radio procedures and first aid, providing supplemental patrol in our neighborhoods and business districts. These volunteers act as additional "eyes and ears" to identify crime in our community and increase public safety. Aside from patrolling the streets, auxiliary patrol members attend neighborhood watch meetings, perform vacation house checks and assist in educating the public about Sheriff's Office programs and resources. The Sheriff's Auxiliary Volunteer Patrol program is a partnership between law enforcement. Cal Fire: No Report. Chief Lee was attending training during this meeting. Without objection from the Board, President Kelley moved up the Closed Session Items prior to Consent Items. 5. PUBLIC COMMENT ON CLOSED SESSION ITEM NO COMMENTS. 6. CLOSED SESSION The Board had no objection to presenting Closed Session Item B in front of Item A. The Board convened to closed session at 1:08 PM to discuss the following items: B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956(d)(2) and (e) (3)- Claim by Cheri Linegar [Pursuant to Government Code sections 54956(e) (3) and 54957.5(b)(1) &(2)(a). Number of Cases: One. A. CONFERENCE WITH LEGAL COUNSEL = ANTICIPATED LITIGATION 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 SESSION The Board returned to regular session at 1:48 PM. No reportable action was taken by the Board of Directors during the closed session for Item A. For Item B Director Kennett made a motion for the Board to deny the Linegar claim. Director Berry seconded the motion. The motion passed unanimously with a roll call vote 5-0. 7. CONSENT ITEMS: 8. DISCUSSION OF PULLED CONSENT ITEMS: None Without objection, President Kelley then recommended the Board consider Item 7 (Consent Items) for approval. After Board discussion and an opportunity for public comment, Director Berry made a motion to approve the Consent Items. It was seconded by Director Kennett and passed with a roll call vote 5-0. AYES: Howie Kennett Kristin Berry Ara Najarian John Janowicz Pete Kelley NOES: None ABSENT: None 9. PULLED CONSENT ITEMS. None. 10. BUSINESSI ITEMS: A. Mid-Year Budget Review. GM Hagemann summarized the staff report regarding the mid-year budget review. Hagemann noted that estimated FY 2024/25 tax revenues are anticipated to come in slightly above the budget amount of $850,000; water and sewer sales revenues are projected to come in on budget at approximately $900,000; and interest income is projected to come in at approximately $50,000 over the budgeted amount. Total operating expenses are at the benchmark for the first half of the fiscal year. This was an information item only. No action was taken, B. Annual Review of District By-Laws. GM Hagemann quickly summarized the staff report, noting that in accordance with the District Policy, the Board reviews the District By-Laws each year. The By-Laws were reviewed by Legal Counsel Shannon DeNatale Boyd. The suggested changes were presented and reviewed by the Board. The motion was made by Vice President Janowicz to accept the proposed changes to the By-Laws. The motion was seconded by Director Najarian and passed with a roll call vote 5-0. AYES: John Janowicz Ara Najarian Kristin Berry Howie Kennett Pete Kelley NOES: None ABSENT: None Staff reminded the Board that the March 11, Regular Board Meeting is canceled. The NEXT SPECIAL MEETING will be held on Tuesday, March 18, 2025, at 1:00PM. ADJOURNMENT: The meeting was adjourned at approximately 2:45 PM. These minutes are not official nor a permanent part of the records until approved by the Board of 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: Board of Directors FROM: Brad Hagemann, General Manager B# DATE: March 18th, 2025 SUBJECT: Monthly Financial Review for February Recommendation: Receive and file report. Overall Monthly Summary During the month of February, the District deposited $120,466.13 and incurred $160,256.83 in expenses (cash basis). Expenses this month included $96,410.10 for CalFire Fire Protection including fourth quarter of 2023/24 and first quarter 2024/25 actuals. Water and sewer revenue for the month of February totaled $65,599.14. Other income included tax revenue in the amount of $31,578.23. Detailed financial reports including Balance Sheet, Checks by Fund and Profit and Loss Sheet are provided for your information for February. Utility Service Billing The District billed approximately $64,773.22 in water and sewer service. Customer Rate Assistance reduced billing charges to the District in the amount of$750.92 this month. 3:55 PM Avila Beach Community Services District 03/04/25 Balance Sheet Accrual Basis As of February 28, 2025 Feb 28, 25 ASSETS Current Assets CheckingSavings 1000 . Cash Summary 1005 . Customer Cash 79.47 1008 - Petty Cash 65.72 1010 - Pacific Premier Checking 147,082.77 1015 . Five Star Bank Checking 1,006,161.30 1017 . Five Star Bank MM 211,866.99 1050 . LAIF 4,251,615.25 Total 1000 - Cash Summary 5,616,871.50 Total Checking/Savings 5,616,871.50 Accounts Receivable 1200 - *Accounts Receivable 159,407.64 Total Accounts Receivable 159,407.64 Other Current Assets 1250 - Receivables 1255 - Interest Receivable 31,062.36 1270 . Taxes Receivable 30,262.00 1280 . Water & Sewer Billings 1282 . Other 2 El Dorado Billings -19,861.05 1281 . Other 1 El Dorado Billings -4,154.42 1280 . Water & Sewer Billings - Other 117,451.82 Total 1280 - Water & Sewer Billings 93,436.35 Total 1250 Receivables 154,760.71 1400 . Prepaid Summary 1410 . Prepaid Insurance -11,825.48 Total 1400 - Prepaid Summary -11,825.48 Total Other Current Assets 142,935.23 Total Current Assets 5,919,214.37 Fixed Assets 1670 - Vehicles - Admin 1671 . 2023 Ford F150 Cost 53,960.62 1672 . 2023 Ford F150 Acc Depr -10,792.12 1670 - Vehicles - Admin - Other 286.40 Total 1670 . Vehicles - Admin 43,454.90 1600 . Fixed Assets & Acc. Depr. Page 1 3:55 PM Avila Beach Community Services District 03/04/25 Balance Sheet Accrual Basis As of February 28, 2025 Feb 28, 25 1605 - Office Equipment 1606 - Copier Samsung 2012 8,233.58 1609 . Office Equipment Accum Depr -22,339.42 Total 1605 - Office Equipment -14,105.84 1610 - Fixed Asset -Office & Admin. 1612 - Office Furniture cost 4,526.21 1614 . Office Furniture Accum Dep. -4,526.21 Total 1610 - Fixed Asset -Office & Admin. 0.00 1620 . Fixed Assets - Sanitary 1622 . Land 60,334.10 1626 . Collection Assets 1627 - Collection Assets Cost 1,517,267.58 1628 . Collect Assets Accum Depr -593,752.02 Total 1626 . Collection Assets 923,515.56 1630 - Disposal Equipment 1631 . Disposal Equip Cost 611,174.66 1632 . Disposal Equip Accum Depr -376,478.88 Total 1630 . Disposal Equipment 234,695.78 1634 : Other Equipment 1634a . Other Equipment Cost 6,973.40 Total 1634 . Other Equipment 6,973.40 1635 . Treatment Plant 1636 . Treatment Plant Original 105,000.00 1637 - Treatment Plant Addition 2,049,098.30 1638 - Treatment Plant Accum Dep -1,740,709.80 Total 1635 . Treatment Plant 413,388.50 1642 . Treatment Equipment 1643 . Treatment Equip Cost 1,087,410.54 1644 . Treatment Equip Accum Depr -787,343.49 Total 1642 . Treatment Equipment 300,067.05 Total 1620 . Fixed Assets Sanitary 1,938,974.39 1650 - Fixed Assets - Water 1652 . Equipment 1653 . Equipment Cost 21,136.28 1654 . Equipment Accum Depr -21,136.28 Page 2 3:55 PM Avila Beach Community Services District 03/04/25 Balance Sheet Accrual Basis As of February 28, 2025 Feb 28, 25 Total 1652 - Equipment 0.00 1656 - Distribuation Assets 1657 . Distribuation Assets Cost 1,270,572.25 1658 - Dist Assets Accum Depr -786,988.91 Total 1656 . Distribuation Assets 483,583.34 Total 1650 - Fixed Assets - Water 483,583.34 1680 . Structures - Fixed Asset 1681 . Structures GFAAG - Sani & FA 82,207.29 1682 . Gen /F Fire Accum Dep -54,626.21 Total 1680 - Structures - Fixed Asset 27,581.08 1690 . Construction in Progress 4,475,390.83 Total 1600 - Fixed Assets & Acc. Depr. 6,911,423.80 Total Fixed Assets 6,954,878.70 Other Assets 1800 - Deferred Outflows of Resources 82,628.00 Total Other Assets 82,628.00 TOTAL ASSETS 12,956,721.07 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2100 . Accounts Payable 193,478.86 Total Accounts Payable 193,478.86 Credit Cards 2140 - Five Star MC Control x0557 2141 . FS MC BH x8624 69,297.12 2142 . FS MC SP x6340 30,223.16 2143 . FS MC KD x3018 5,785.96 2140 . Five Star MC Control x0557 - Other -102,848.55 Total 2140 - Five Star MC Control x0557 2,457.69 Total Credit Cards 2,457.69 Other Current Liabilities 2200 . Payrolli Liabilities 2201 - Accrued Payroll 2,766.15 2240 - Health Insurance Page 3 3:55 PM Avila Beach Community Services District 03/04/25 Balance Sheet Accrual Basis As of February 28, 2025 Feb 28, 25 2241 . Employee 11,760.00 Total 2240 . Health Insurance 11,760.00 2250 . PERS Liability 1,198.50 2260 - Vacation Payable 5,441.96 2262 . Sick Pay Accrued 2,818.66 Total 2200 . Payroll Liabilities 23,985.27 2300 . Deposits Held 2303 . Water Deposits Held 7,640.00 Total 2300 . Deposits Held 7,640.00 Total Other Current Liabilities 31,625.27 Total Current Liabilities 227,561.82 Long Term Liabilities 2400 - Net Pension Liability 149,160.00 2450 . U.S. Bank Loan WWTP 2,497,679.03 2500 . Deferred Inflows of Resources 22,819.00 2999 . Unbalanced Classes 133,455.52 Total Long Term Liabilities 2,536,202.51 Total Liabilities 2,763,764.33 Equity 3000 - Opening Bal Equity -17,611.15 3900 - Retained Earnings 7,620,312.04 3999 . Prior Period Adjustment FY 23 2,195,322.62 Net Income 394,933.23 Total Equity 10,192,956.74 TOTAL LIABILITIES & EQUITY 12,956,721.07 Page 4 3:54 PM Avila Beach Community Services District 03/04/25 Profit & Loss Accrual Basis February 2025 Feb 25 Ordinary Income/Expense Income 4000 - Income Summary 4010 - Operating Revenue 65,599.14 4012 . Solid Waste Franchise Fee 1,620.76 4030 : County Taxes 31,578.23 4050 - Harbor Charges 4052 . Front Street Lighting 333.00 4053 . WWTP 0&M 21,335.00 Total 4050 - Harbor Charges 21,668.00 Total 4000 - Income Summary 120,466.13 Total Income 120,466.13 Gross Profit 120,466.13 Expense 5100 - Merchant Credit Card Fees 5110 - Amex 9.00 5120 . Chase Paymentech 138.51 5140 - Invoice Cloud 448.07 Total 5100 - Merchant Credit Card Fees 595.58 5200 . Payroll Expenses 5210 . Gross Wages 5211 . Regular Pay 12,978.27 5212 - Holiday Pay 803.02 5213 - Overtime Pay 0.00 5214 - Sick Pay 925.96 5216 - Vacation Pay 297.63 Total 5210 . Gross Wages 15,004.88 5230 - Payroll Taxes 248.38 5240 . Health & Medical Exp. 5242 - Health Ins / Other 1,770.00 Total 5240 . Health & Medical Exp. 1,770.00 5250 - PERS Company Pd Expense 5255 - PERS Co Pd Shawn 807.32 5256 . PERS Co Pd Kristi 355.55 Page 1 3:54 PM Avila Beach Community Services District 03/04/25 Profit & Loss Accrual Basis February 2025 Feb 25 5250 . PERS Company Pd Expense - Ot... 23.57 Total 5250 . PERS Company Pd Expense 1,186.44 5280 - Payroll Administration & Misc. 117.28 Total 5200 - Payroll Expenses 18,326.98 6000 . Administrative Overheads 6102 . Accounting 3,071.25 6115 - Bank Service Charges 0.00 6120 . Dues & Subscriptions 107.98 6135 - Legal 943.00 6140 - Office Supplies & Postage 6142 . Postage & Shipping 237.17 6143 . Supplies, Office 71.64 Total 6140 . Office Supplies & Postage 308.81 6150 . Rate Assistance 750.92 6160 - Training 26.12 6167 . Uniforms 351.26 6170 . Website 249.00 Total 6000 . Administrative Overheads 5,808.34 6500 - Operating Expenses 6505 . Contract Labor O & M 10,747.00 6506 . Contract Labor GM 9,440.00 6507 - Contract Labor Civil Engineer 9,760.00 6520 . Equipment Repair & Maint. 6522 - Equip. Rep. & Maint-Avila & HD 976.01 6524 - Eqip. Rep. & Maint. Avila Only 225.00 6520 - Equipment Repair & Maint. - Other 923.42 Total 6520 . Equipment Repair & Maint. 2,124.43 6528 . Gas & Oil 382.23 6535 . Insurance PIL 2,869.46 6540 . Lab Tests 3,038.00 6542 - Maintenance 404.00 6550 . Operating Supplies 27.63 6565 . Regulatory Compliance 1,855.00 6575 - Small Tools 268.52 6580 . Solids Handling 3,373.50 Page 2 3:54 PM Avila Beach Community Services District 03/04/25 Profit & Loss Accrual Basis February 2025 Feb 25 6585 . Telephone / Internet 249.96 6590 . Utilities 7,432.30 6591 . Yard Maintenance 47.25 Total 6500 . Operating Expenses 52,019.28 6600 . Cal Fire Contract Labor 96,410.10 Total Expense 173,160.28 Net Ordinary Income -52,694.15 Other Income/Expense Other Income 7200 . Non-Operating Income 7220 . CIP Harbor 15,630.00 Total 7200 . Non-Operating Income 15,630.00 Total Other Income 15,630.00 Other Expense 8200 . Non-Operating Expenses 8230 . Capital Purchases in Prog Sani 8249 . SCADA Project Upgrade 470.00 Total 8230 . Capital Purchases in Prog Sani 470.00 Total 8200 - Non-Operating Expenses 470.00 Total Other Expense 470.00 Net Other Income 15,160.00 Net Income -37,534.15 Page 3 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Managef PM DATE: March 18, 2025 SUBJECT: General Manager Report Zone 3Technical. Advisory Committee (TAC) and Advisory Committee The Zone 3 Technical Advisory Committee met on Wednesday, March 12, 2025. The agenda packet for the March 12th meeting is provided as an attachment to this report. As ofthis writing (March 12, 2025), the Lopez reservoir is at 93% of capacity with 46,004 AF in storage. Rainfall accumulation at the lake since July 1, 2024, is 11.2 inches. The main item at the March 12th TAC meeting was review of the proposed FY 2025/26 Zone 3 budget. As noted on the County's Budget Transmittal Memo, the County is proposing a 9.76% increase in total contractor billings. This is after the TAC and Finance Team decreased capital program spending and moved a significant amount of: funding from the Zone 3 District reserves. The most significant increase is the Billable Routine 0&M Expenditures primarily due to an increase in the Habitat Conservation Plan funding. This is related to the on-going Lopez litigation. State Water Subcontractors Advisory Committee The State Water Subcontractors Advisory Committee held a Special Meeting on March 7, 2025. The purpose of the Special Meeting was to finalize the Committee's comments on the draft State Water Project Water Transfer Policy. The Draft Policy will be presented to the Board of Supervisors for approval at a meeting in April or May. I was not able to attend the March 7th, ? meeting but I understand the Committee did reach some resolution on the draft Policy. The Agenda Notice and the March 4, 2025, draft Policy is provided as an attachment to this report. County Estimated Property Revenue In early March the County provided an updated estimate for Fiscal Year 24/25 year-end tax revenue and an estimate for Fiscal Year 25/26 tax revenue. The Avila Beach CSD property tax revenue is shown under Fund Numbers 0895 and 0896. The County estimates the District's FY 24/25 total tax revenue will be $875,623. The County estimates the District's FY 25/26 total tax revenue will be $907,535, an increase of $31,912. The County's estimated tax revenue projections are provided as an attachment to this report. ZONE 3 Lopez Project - San Luis Obispo County Flood Control and Water Conservation District ZONE 3 TECHNICAL ADVISORY COMMITTEE Agenda Wednesday March 12, 2025 9:00 = 11:00 am Join on your computer, mobile app or room device Meeting ID: 261 85 070 Passcode: pjuWGG Or call in (audio only) +1 3296-481.2020908 United States, Salinas Phone Conference ID: 420 020 900# 1. Announcements All 2. General Operations and Water Report David Summary Notes - February Monthly Operations Report - February Lopez Storage Projections - February (provided at meeting) 3. Current Reservoir Conditions Kyle 4. Project Updates David 5. Zone 3 25/26 Budget Endorsement David 6. Future Agenda items All Attachments: A. Meeting Minutes - February B. Lopez Monthly Operations Report - February C. Project Updates D. Budget Book Next Meeting Date: April 9, 2025 ZONE 3 TECHNICAL ADVISORY COMMITTEE THURSDAY, February 13, 2025 (9:00-10:05 AM) Via Microsoft Teams SUMMARY NOTES Meeting Time: 9:00am-9:48am Attendees via Microsoft T'eams: Peter Brown (OCSD), Dwayne Chisam (San Miguelito), Nicole Valentine, Shane Taylor, Shannon Sweeney (City of AG), Greg Ray, Erin Wiggin (City of Grover Beach), Michael Steele (NCMA), John Wallace, Brad Hagemann (ABCSD), Dan Heimel (Confluence/City of Pismo), Harold Wright, Katie Franco, Kristina Borges, David Spiegel, Kyle James, Laura Holder, Jeromy Caldera, Desiree Bravo (District/PW Dept) 1. Announcements None 2. General Operations and Water Report January Meeting Summary Notes (Attachment A) presented by DSpiegel January Monthly Operations Report (Attachment B) presented by DSpiegel o DSpiegel acknowledged that agencies requested effectuation of District Initiated Exchange (DIE) and agreed to pay the variable costs of delivery. Lopez Storage Projections; January (Attachment C) 3. Current Reservoir Conditions Current reservoir conditions were presented by KJames 4. Project Updates (Attachment D) DSpiegel provided update report 5. Zone 3 24/25 Budget (Attachment E) DSpiegel provided budget summary. General discussion about categories and reserves ensued. Request to ask Finance Committee ift they would like to include TAC members in their meeting. 6. Future Agenda Items TAC budget endorsement CIP Project Field Trip Graph of water storage and true up credit. Next TAC Meeting: Wednesday, March 12, 2025 6 V EFEE - 9 5 E 3 A I 9 S - 8 E 3 a 3 3 E - 3 - E - E - 8-ba - E - E s E - E E a 5 I 5 E 8 a I I E - E I I - € I - I e 8 e e E 3 E 5 - € - E - I I 3 - I : E e E de - g - I 1 I a 3 a I 8 S 8 3 3 I I 3 E de I I E. I E I - - E E a 6 I Bi E - B 2 E I A a A : a a 9 a N o 3 - E a - 3 s a E E a S a 5 3 siets a 4 DE E 3 a E - E E E * EEEE E E4 DE % FAEEA E I I 3 E B DE E E s a atatote E I a E 5 de I 3 E E 2 I I E I 8 3 8 3 8 E 3 I E a a E 8 E a E 3 e DE E I I I 2 a E st 9 e 8 E - RI E 5 E A 4 E E E - E 8 E 5 3 5 - E E 8 8 8 3 8 e I E a E - ot egt g E E 5 3 E a - 8 9 8 8 - a E a E B 5 E a 8 3 E - - I 5 I E I I - - E * 55 - 6 EE a 9 8 8 8 8 8 - 5 P & E 1 - $ a E - - - E - I a a 8 3 5 E d s - 8 at a E E EE I 3 E 5 2 E E E K E 45 F * B 3 E a 3 3 2 - 8 : E - - 8 a a a E elst gt E E 3 N e 33 V à I 3 a R E 9 E 9 - E E E $ E - E 9 E E E ! S E e a I $ E : - 3 6 8 a I a 9 I I € > E o E E S E $ 85 E : a a E 3 E E 3 3 I e e 8 I a 1 3 - 5 - E B : 3 : E E E > e I I 3 I I I 5 I of 5 I I et a I - 8888 e o 5 - : E B f 2 1 E A E 2 - E : - a E 5 I I I E 3 I E 5 I f e a 8 E 35 E E N s 9 E giete 88s e 8 3 o f A E 3 5 E 3 e A - - 3 8 - E E I E - I a 3 - - 00 I I a E E E E 3 & de 1 83 a 8 I 1 3 - a & - of I I 988gSE E a E BE a DE E e ZONE 3 Lopez Project San Luis Obispo County Flood Control and Water Conservation District TO: Zone 3 Technical Advisory Committee FROM: David Spiegel, PE, Utilities Engineer DATE: March 12, 2024 SUBJECT: Zone 3 Projects Update Project Updates: Lopez Dam Flow Sensor Purchase and installation of a flow sensor for measure pulse flows out of 42inch emergency valve Budget -$20,000 Membrane Module Replacement O Solicited updated pricing for 2 racks Budget -$600,000 Spillway Assessment and Investigation 0 Received Geotechnical Data Report from GEI Remainder of project - minimum of $300,000 Geotechnical Testing & Seismic Alternatives Study of Terminal Reservoir Dam (No Change) ) With DSOD for Review , Geotechnical Engineering Report Complete Budget -$500,000 Cathodic Protection Repair Project (No Change) O Working on transient monitoring station plans for DWR/State water line crossing System working well Budget $449,933 Fire Flow Tank Replacement (No Change) - On Hold Final Design Plans are complete $500k in Zone 3 Funds Budget $1,400,000 Completed Projects DAF building repair and lifeline beam replacement Flool ControlZone3 Proposed Budget Fiscal Year 2025- COUNTY SSANLUIS OBISPO FLOOD CONTROL ZONE 3 2025-26 PROPOSED BUDGET TABLE OF CONTENTS Page Numbers 1. Letter of Transmittal 2. Funding Sources for Budget for Fiscal Year 2025-26. 1 3. Funding Sources for Budget for Fiscal Year 2024-25. 2 4. Funding Sources for Budget for FY 2025-26 VS. 2024-25. .3 5. Billing Analysis Summary. 4 6. Billing Analysis for Fiscal Year 2025-26. 5 7. Billing Analysis for Fiscal Year 2024-25. .6 8. Billing Analysis for Fiscal Year 2025-26 VS. 2024-25.. 7 9. Flood Control Zone 3 Reserves, Projected at 6/30/26. .8 10.Flood Control Zone 3 Reserves, Projected at 6/30/25. 9 11.Flood Control Zone 3 Reserves, FY 2025-26 Changes.. 10 12.Flood Control Zone 3 Consolidation of Funds. 11 13.Billing For Agency Debt Service. .12 14.E Estimated Billing Summary - FY 2024-25 & 2025-26. 13 15. Cost per Acre Foot for Fiscal Year 2025-26.. 14 16. Capital Outlay and Special Projects for FY 2025-26.. 15 COUNTY OF SAN LUIS OBISPO COUNTY SSANLUIS Department of Public Works OBISPO John Diodati, Director March 20, 2025 MEMORANDUM TO: Flood Control Zone 3 Advisory Committee FROM: Katie Franco, San Luis Obispo County Public Works Finance Manager SUBJECT: Flood Control Zone 3 - Proposed Budget FY 2025-26 The 2025-26 Flood Control Zone 3 Proposed Budget has been prepared by the County Department of Public Works for your review. The proposed budget will also be mailed to the contracting agencies' Finance Directors and Technical Advisory Committee (TAC) members and City/General Managers. An in-depth review with agency Finance Staff and Technical Staff will be held before final review by the Zone 3 Advisory Committee, scheduled for March 20, 2025. A: summary of changes from the 2024-25 budget to the proposed 2025-26 budget is as follows: 2024-25 2025-26 Percentage Description Dollar Change Budget Budget Change Operations & Maintenance Billable Routine 5,181,273 6,436,876 1,255,603 24.23% Billable Non-Routine * 65,000 554,252 489,252 752.70% Total 0&M 5,246,273 6,991,128 1,744,855 33.26% Billable Capital Outlay/Reserves * ** 347,000 *** (611,403) (958,404) (276.20%) Billable Debt Service 2,213,016 2,188,072 (24,944) (1.13%) Total Contractor Billings $7,806,289 $8,567,797 $761,507 9.76% ** Includes funding. from District Funded Reserves of $283,000 *** Includes funding from District Funded Reserves of $706,000 Non-Routine 0&M & Capital 412,000 (57,151) (469,152) (113.87%) i County of San Luis Obispo Department of Public Works County Govt Center, Room 206 - - San Luis Obispo, CA 93408 - - (P) 805-781-5252 I (F) 805-781-1229 pwd@co.slo.ca.us - slocounty.ca.gov Variance Discussion: The overall contractor billings will increase by 9.76% for FY 2025-26. Overall operations and maintenance billings have increased approximately 24.23%. Documents within this booklet analyze the details related to changes between the 2025-26 and 2024-25 Proposed Budgets. On a bottom- line basis, total billings to agencies are approximately $762,000 more than the current year. The following further explains the major reasons for the changes. Billable Routine 0&M Expenditures - (Increase of 24.23%) Routine 0&M Expenditures are about $1,300,000 higher than the prior year budget. The net increase in Routine 0&M is due to new increases across several line items that exceed the decreases in several other line items. Notable budget decrease is in Water Treatment ($58,922). Notable budget increases are seen in Unit Repairs $241,697, Dam Repairs $152,450, Countywide Overhead $52,888, Utilities Division $70,583, and Urban Water Management Plan $62,580. The biggest increase is seen in the Habitat Conservation Plan (HCP) $589,431. The net difference per agency is demonstrated on page 4. Billable Non-Routine 0&M and Capital Outlay/Reserves - (Decrease of 113.87%) Non-Routine 0&M items are for special projects and studies, as well as major maintenance efforts that run from one to three years. Capital expenditures are "pay-as-you-go" and are not generally funded through use of Flood Control Zone 3 reserves and/or other sources of funding such as grants or loans. The Technical Advisory Committee (TAC) reviews and prioritizes the Non-Routine 0&M projects in conjunction with the Capital projects when developing the 5-Year Capital Outlay Plan. This year's projects have been reviewed and approved by the TAC prior to being included in this proposed budget. Non-Routine 0&M has increased significantly due to HCP Litigation of $554,252. Capital Outlay/Reserves has a significant decrease due to multiple capital projects being deferred during fiscal year 2025-26 equating to $605,000 and funding from district funded reserves of $706,000. Both of these items help to offset the costs by about $1,300,000. Details of each of these projects may be found on page 15. Billable Debt Service - (Decrease of 1.13%) The debt service costs should remain at this level until the bonds are paid off in the year 2030 or until refinanced. Minor fluctuations in billable amounts are due to fluctuating tax estimates that are collected and dedicated toward debt service. ii Reserve Policies (see pages 8-10 for projected reserve levels) DISTRICT FUNDED RESERVES: The balances within these reserves are derived from pre-2000 property tax revenues, and annual interest earnings and rents. 1976 = 2000: A portion of the 1% property tax established by Proposition 13 was annually apportioned to the Flood Control District. Of those Flood Control District's funds, a portion was further segregated annually into Zone 3, although the funds are not legally restricted to use within Zone 3. 2000: Pursuant to the Zone 3 Water Contracts, the above-mentioned funds annually segregated into Zone 3 were contractually restricted to paying debt service on the Lopez Dam seismic remediation project. Therefore, funds existing in Zone 3 District Reserves since 2000 are essentially a "draw down" account utilized towards Zone 3 projects and efforts, though not legally restricted to use within Zone 3. Operating Reserves the District will strive to maintain an operating reserve at a minimum of 50% of routine operations and maintenance expenditures. Designated Reserves - Reserves collected and set aside for significant scheduled maintenance and capital costs will be separately identified as part of the annual proposed budget and will be incorporated in the annual final budget only after review by the Zone 3 Advisory Committee. The Zone 3 Advisory Committee has recommended utilizing the District Funded Designated Reserves toward the efforts shown in the following chart. Specific requests by the Advisory Committee require approval by the San Luis Obispo County Board of Supervisors either via the annual budget process or mid-year requests prior to their use. Estimated District Funded Designated Reserves Available Utilization Plan $0 HCP Planning & Resulting Projects (established in FY: 11/12) Public safety related to water quality and quantity $131,403 purposes TOTAL District Funded Designated Reserves $131,403 Projected at 6/30/26 CONTRACTOR FUNDED RESERVES: These reserves are funded by contributions from individual contractors or other participants of the District project. Addition to these reserves will be made via annual billings based on approved budgeted amounts. Any distributions of these reserves will be based on actual requirements. These reserves will be accounted for separately by contributor. The annual budget process will provide a statement of reserve activity. A portion of the costs of significant scheduled maintenance items or capital items, as identified in the long- range capital improvement plan, may be set aside in each annual budget of the District. Additionally, each agency may opt to establish reserves to be used to stabilize billings from year to year. Said reserves will be separately identified and will be incorporated in the annual final budget only after review by the Zone 3 Advisory Committee. DEBT RESERVES: Debt reserves are contractually mandated and are not addressed as part of this policy. iii 1 $A $ 2 A 3 I 3 A D o / 9 9 4 5 a > N N 2 a 4 I LL E a - S2 4 13 3 & N & 8 2 3 a - N N & 14 5 a 10 8y A & d a *e teo 6 a 5 A 5 e 0 e 0 SWSAC MEMBER. AGENCIES: SLOCFC&WCD, CSA 16 (SHANDON), CMC, COUNTY OPS CENTER, CUESTA COLLEGE, CITY OF MORRO BAY, CITY OF PISMO BEACH, OCEANO CSD, AVILA VALLEY MWG, AVILA BEACH CSD, SAN MIGUELITO MWC, SAN LUIS COASTAL USD Notice of Special Meeting STATE WATER SUBCONTRACTORS ADVISORY COMMITTEE SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT Library Conference Rm., City/Co. Library - 995 Palm St., San Luis Obispo, CA 93401 Friday, Mar. 7, 2025 - 10:00 - 11:30 AM For agenda packet attachments and more information: htpswawasiecunyaswagmpeammenspunie Woris/CommitesProgamaSue-AasrPalectamdsunontnadoorsAdwison.coaspk Chair: Brad Hagemann (Avila Beach CSD) Vice Chair: Courtney Howard (District) AGENDA 1. CALL TO ORDER 2. ROLL CALL (QUORUM COUNT) 3. PUBLIC COMMENT ON AGENDA ITEMS - As this is a special meeting, public comment is limited to items on the agenda within the Committee's jurisdiction (CA Gov. Code S 54954.3(a)); up to 3 minutes each. 4. DISCUSSION AND POSSIBLE ACTION: DRAFT UPDATE TO THE SWP WATER TRANSFER POLICIES (Priorities and Criteria). Staff Recommendation: Discuss and consider action recommending Board of Supervisors adoption of the proposed Draft SWP Water Transfer Policy. 5. ADJOURNMENT Attachment 1. Agenda Item 4 - Staff Report CONTACT: Please contact SWSAC Secretary, Wes Thomson, with any questions: wthomsonerosioca.us or (805) 781-5252. All Americans with Disabilities Act (ADA) accommodations shall be promptly reviewed and resolved. TO: State Water Subcontractors Advisory Committee FROM: Wes Thomson, Supervising Engineer, Water Utilities DATE: March 7, 2025 SUBJECT: Item 4: DRAFT UPDATE TO THE SWP WATER TRANSFER POLICIES (PRIORITIES & CRITERIA) Staff Recommendation: Discuss and consider action recommending Board of Supervisors adoption of the proposed Draft SWP Water Transfer Policy. Background As discussed at the February 7, 2025, SWSAC meeting, County staff are preparing to take the draft SWP transfer policy update to the Board for review in Spring 2025 with recommended updates. The objective of the policy is to clarify District priorities and criteria for SWP water supply transfers under both temporary (short-term; multi-year) and permanent (long-term) agreements that align with the District Board's goal of maximizing the unallocated SWP water supply benefit for the County and reducing the cost burden on the county taxpayers. As such, the policies would be used to (1) guide the County as it works to improve SWP water management and consider cost recovery opportunities, and (2) evaluate requests to establish new SWP water users within the County, Discussion Our discussion at the special meeting will focus on recent updates (Attachment 1) to the transfer policy discussed with the SWSAC on 2/7/25 (Attachment 3) and how it now better aligns with the WMWG's proposed Framework" (Attachment 2). As shared at the SWSAC meeting on Feb. 7, the Framework document, developed in partnership with the District and the SWSAC's Water Management Working Group, is an outline of proposed priorities and criteria, and helped to clarify and communicate subcontractor thinking. Upon SWSAC review, there seemed to be support for including a framework like this (as an attachment) with the proposed policy update draft in the staff report when the proposed policy update is presented to the board. Additional refinements to the draft policy are expected to address comments received in February 2025 and to make general formatting improvements. Staff also anticipates also returning to the WRAC on April 2 for them to consider an advisory vote to the Board on the draft policies. Attachments 1. Draft SWP Transfer Policies (Priorities and Criteria) (updated, 3/4/25) ("Clean" & Track Changes version) 2. Draft SWP Priorities and Criteria for Use Framework (updated, 3/4/25) 3. Draft SWP Transfer Policies (Priorities and Criteria) (SWSAC handout, 2/7/25) 4. 2003 Excess Entitlement Policies (for reference) State Water Project Transfer Policies State Water Project Allocation From Department of Water Resources (DWR)- Definition The State Water Project (SWP) Allocation is the total amount of State Water Project water that can be delivered to the San Luis Obispo County Flood Control and Water Conservation District ("District") under its contract with the California Department of Water Resources ("Master Contract") on an annual basis. District allocation of SWP water is based on two factors, (1) the subcontracts the District entered into with a with a number of entities (collectively, "Subcontractors"): for "Project Water"s supply benefit under the District's Master Contract which is up to 25,000 acre-feet (AF) of "Table A" annually from DWR. The balance of the District's Master Contract not subcontracted is allocated to the property owners within the District that have paid taxes to maintain this water supply (Unallocated SWP Supply). The amount of SWP water not needed by the District to meet the annual subcontracted obligations is considered surplus water. These policies apply to the entire SWP water supply available to the District. Relationship to Previously Adopted Policies These Policies replace / supersede the District's 2003 Excess Entitlement Policies (Approved by Board of Supervisors January 14, 2003). Purpose of these Policies The Purpose of these Policies is to establish policies that will guide both District staff and the Board in fully utilizing the unallocated water supply, facilitating subcontractor requests for water transfers on an annual, multi-year, or permanent basis. These policies shall not be deemed to limit future discretionary actions by the District Board of Supervisors or be read as directing action that is any way contrary to existing contractual obligations. SWP is a Supplemental Supply: - Primarily for Urban Water Needs Given that SWP water is an imported supply and subject to extended delivery interruptions (for up to several weeks at a time) for annual operations maintenance, it is to be integrated into local systems without becoming the primary supply necessary for a public water system serving domestic needs. For the County of San Luis Obispo, SWP water supply was developed as a supplementa supply to meet municipal water needs. Domestic use shall be considered the highest priority use of all SWP water made available for local use in the county under the District's Master Contract with DWR. Domestic use is needed for sustenance, public health and safety, and welfare. State Water shall be used first to address public health, ensure reliable 3/4/2025, DRAFT State Water Project Transfer Policies access to safe, affordable drinking water and sanitation. It recognized that domestic use occurs both within the public water supply system service areas and outside of those areas in the rural areas of the County where domestic water supplies are from individual water supply wells. I. TEMPORARY TRANSFERS (single- or multi-year water management actions) A. Priority of Use (Unallocated SWP Supply) In priority order, preference will be given to the following five uses: 1. SWP Subcontractors (Direct, In-lieu, or Groundwater Recharge): The local agencies with long-term contracted capacity in Phase II of the Coastal Branch shall have the first right to utilize water made available under the Master Contract. 2. Emergency 3. Domestic Use (for Direct, In-lieu, or Groundwater Recharge). 4. AprcuturalNon.Domestic Uses (Direct delivery, In-lieu, or Groundwater Recharge). 5. SWP transfer/Exchange of Surplus Water B. Additional consideration will be given to uses that: 1. Do not harm the District's ability to meet its obligations to the existing Subcontractors, 2. Address public health or a water shortage emergency pursuant to Water Code Section 350, 3. Provide supplemental water supply to promote water supply resiliency to both urban and rural water users, 4. Store available and/or unscheduled water deliveries for later use during times of water shortages to support municipal, groundwater basin replenishment, agricultural, and environmental purposes. 5. Manage demand to improve supply planning and water market opportunities to generate evenues that recover current costs and some or all of District's past costs. 6. Solves or mitigates water supply problems in key watersheds/Dasins identified by the Board, including: Paso Robles GW Basin, Los Osos GW Basin, Arroyo Grande Creek Watershed, and Edna Valley GW Basin. C. Preference will be given to local agencies and water purveyors regardless of whether the use is for a single-year or multi-year period, or whether it is on a first-priority 3/4/2025, DRAFT State Water Project Transfer Policies basis (with dedicated conveyance capacity in the coastal branch) or second-priority basis (without dedicated coastal branch capacity). D. Temporary transfers for delivery to locations downstream of the original place of use (i.e., to turnout locations beyond the conveyance reaches with dedicated capacity for that allocation) could be on a "second priority" or short-term (year-to-year) basis. This ensures deliveries of transferred water does not detrimentally impact the ability of the District to fulfill existing delivery contracts for the other subcontractors. E. Temporary transfer uses must meet the Board-established Criteria for Temporary Use of State Water. F. Criteria for Temporary Use (Unallocated SWP Supply) The following criteria would be used to evaluate requests for temporary use of State Water: 1. Water may be made available to existing public agencies, public water companies regulated by the PUC and existing mutual water companies with no water being contracted to individuals. 2. SWP water may be contracted for use as a temporary supplemental supply within the service area of an established public water system (including for temporary storage outside of the system for later delivery subject to availability of conveyance capacity) only if the water purveyor approves and requests the temporary transfer. 3. SWP water may be contracted for temporary delivery as an emergency supply when there is an "Emergency Condition" declaration by both the County Board and the governing body of the requesting public water agency or water purveyor. Water delivered under the Emergency Condition would be subject to all costs associated with delivery of State Water at the time ofthe Emergency Condition. 4. Temporary water transfer deliveries shall not compromise system reliability or reduce delivery capabilities to existing subcontractors. 5. AlL costs must be paid by the water user. 6. Temporary transfer deliveries shall not detrimentally impact existing long-term subcontractors from a financial standpoint. a. There shall be no increase in administrative costs to existing subcontractors. b. All variable costs associated with the water delivery shall be borne by the agency contracting for the temporary water transfer. 3/4/2025, DRAFT State Water Project Transfer Policies C. Cost recovery revenues generated by the temporary use of dedicated capacity within the conveyance reaches should be proportionally distributed as a credit to the existing contractors and SWP tax fund based on the long-term contracts and the scheduled water deliveries at the time of the execution of the temporary contract. II. PERMANENTTRANSFERS (long-term water supply contracts) A. Priority of Use (Unallocated SWP Supply) In priority order, preference will be given to the following three uses: 1. SWP Subcontractors (Direct, In-lieu, or Groundwater Recharge): The local agencies with long-term contracted capacity in Phase II of the Coastal Branch shall have the first right to utilize water made available under the Master Contract. 2. Municipal (for Direct, In-lieu, or Groundwater Recharge). 3. AgrcuturalNon-Domestic Uses (Direct delivery, In-lieu, or Groundwater Recharge). B. Additional consideration will be given to uses that: 1. Do not harm the District's ability to meet its obligations to the existing Subcontractors, 2. Address public health or a water shortage emergency pursuant to Water Code Section 350, 3. Provide supplemental water supply to promote water supply resiliency to both urban and rural water users, 4. Store available and/or unscheduled water deliveries for later use during times of water shortages to support municipal, groundwater basin replenishment, agricultural, and environmental purposes. 5. Manage demand to improve supply planning and water marketing opportunities to generate revenues that recover current costs and some or all of District's past costs. 6. Solve or mitigate water supply problems in key Watersheds/basins/subbasins identified by the Board, including: Paso Robles GW Basin, Los Osos GW Basin, Arroyo Grande Creek Watershed, and Edna Valley GW Basin. C. Preference will be given to local agencies and water purveyors regardless of whether the long-term contract is for water delivery on a first-priority basis (with dedicated conveyance capacity in the coastal branch) or on a second-priority basis (without dedicated coastal branch capacity). 3/4/2025, DRAFT State Water Project Transfer Policies D. Preference will be given to the use at the same (or upstream) financial reach in which the capacity for that allocation terminates. This avoids the "allocation without capacity"issue. E. Permanent transfers to agencies with places of use at locations downstream of the original place of use (i.e., places beyond the financial reach with dedicated capacity for a given supply) could be contracted under a "second priority" or short-term (year-to-year) basis when that option is available. This ensures deliveries of transferred supply without dedicated capacity do not detrimentally impact deliveries of existing allocation to subcontractors. F. Permanent transfer uses must meet the Board-established Criteria for Permanent Use of State Water. G. Criteria for Permanent Use (Unallocated SWP Supply) The following criteria would be used to evaluate requests for permanent (long-term, "take-or-pay") use of State Water: 1. SWP water can be made available to (1) public water agencies, water companies regulated by the PUC, and mutual water companies whose primary mission is to operate public water systems (as defined by the California Division of Drinking Water) that provide retail-level municipal water service, or (2) special districts whose primary mission is to acquire and deliver water to end users within a defined service area for agricultural use or to achieve basin management objectives that support defined local basin/subbasin plans, and/or are aligned with County groundwater sustainability plans and programs. a. When contracting for supplemental use as a treated domestic supply within the service area of an established public water system, the County or designated public water purveyor providing treated water for domestic use to the service area must make the request to the District (and it must make the request and approve the contract on behalf of any non-public water agencies) for consideration of the permanent transfer. b. When contracting for supplemental use as an agricultural. / non-domestic supply within the service area of another existing subcontractor, the County or special district contracting for SWP water delivery to the retail- level service area must make the request to the District (and it must make the request and approve the contract on behalf of any non-public water agencies) for consideration of the permanent transfer. 2. SWP water may not be contracted on a long-term basis a. to individuals. 3/4/2025, DRAFT State Water Project Transfer Policies b. directly from the District to other non-water public agencies, non-water private companies (for-profit or non-profit), cooperatives, or other public or private institutions or whose primary mission is not the operation of public water systems or groundwater basin management. 3. SWP water could be contracted under a long-term agreement for delivery as an emergency supply when that contract option is available, and would be subject to emergency declarations similar to conditions under which an emergency would be declared for temporary transfers. Water delivered under the Emergency Condition would be subject to all costs associated with delivery of State Water at the time of the Emergency Condition. 4. Uses should be consolidated, wherever possible. 5. Uses shall not compromise system reliability or reduce delivery capabilities to existing subcontractors. 6. AlL costs must be paid by the water user. 7. Uses shall not detrimentally impact existing subcontractors from a financial standpoint. a. There shall be no increase in administrative costs to existing subcontractors. No new permanent water supply contracts of less than 20 acre-feet will be allowed. b. There shall be an equitable investment reçovery program for existing subcontractors that recover current costs and some or all past costs. 3/4/2025, DRAFT AVILA BEACH COMMUNITY SERVICES DISTRICT ESTABLISHED FEB.1997 SUBJECT: March 2025 Operations and Maintenance Report Compliance issues for the month ofFebruary. The February 2025 Self-Monitoring Reports There were no compliance and associated data tables and graphs are provided as an attachment to this report. Wastewater Treatment Plant MBR tank transfer pumps seal and bearing assemblies. Staffhas discovered an issue with the equalization service life that the seals and bearings on these pumps should have a longer Itis our understanding pump onsite with Cloacina to discuss if this has before needed to be replaced. We have requested an meeting kits been issue with other installations. Wehave ordered the seal and bearing replacement an any oftheir and we will attempt to get this covered under warranty if applicable. routine rounds, operations staff discovered a "direct short" error code on the permeate pump During standard troubleshooting procedures and discovered a direct variable frequency drive. Staff performed to land short between the pump and the control panel. With contractor assistance staff ran new conductors on the permeate pump and put it back in service. Staffis also working with Cloacina to address the remaining punch listi items for the MBR Warranty. The MBR unit will be taken offline the last week of March to accommodate some warranty work on the controls. a failed drive on the secondary sedimentation basin #2. The With contractor assistance, staffreplaced rakes. gear The basin is now operational and ready to be put gear drive controls the sludge collection system back in service as needed. Wastewater Collection System Standard preventative maintenance was performed on the collections system. Water Staff continues System to monitor chloramine residuals to ensure proper ammonia levels arei maintained to prevent nitrification. DISCHARGER SELF-MONITORING California Regional Water Avila Beach CSD ORDER R3-2017-0025 Quality Control Board, NPDES CA0047830 Central Coast Region Wastewater Treatment WDID 3 400101001 Monthly report due last day of following month Facility Month: FEBRUARY 2025 Annual report due January 30 Effluent and Influent Monitoring Daily Flow (MGD) Effluent Monitoring Weekly Weekly Weekly Weekly Monthly Biweekly Biweekly Dally Date Effluent Effluent Influent Influent Effluent Date Total Max Avg Total Fecal Chlorine BOD TSS BOD TSS Oil & Grease (gpm) (gpm) Coliform Coliform Residual (24 HC) (241 HC) (24 HC) (24 HC) (Grab) 1 0.047613 81 33 0.00 2/6/25 4.7 <5.0 160 180 <5.0 2 0.045248 77 31 0.00 2/12/25 <4.0 <5.0 220 200 3 0.044795 120 31 2.0 <1.8 0.00 2/20/25 7.3 <5.0 270 180 4 0.042945 66 30 0.00 2/27/25 5.7 <5.0 290 260 5 0.046733 75 32 0.00 6 0.038247 82 27 23 <1.8 0,00 Min <4.0 <5.0 160 180 <5.0 7 0.055044 126 38 0.00 Mean 4.4 <5.0 235.0 205.0 <5.0 8 0.052827 114 37 0.00 Max 7.3 <5.0 290 260 <5.0 9 0.053103 115 37 0.00 BOD Removal: 98.1% TSS Removal: 100.0% 10 0.044884 110 31 <1.8 <1.8 0.00 Effluent Monitoring 11 0.051262 71 36 0.00 Weekly Weekly Weekly Weekly Date Set. Solids Turbidity pH Temp "F 12 0.055052 78 38 <1.8 <1.8 0.00 (Grab) (Grab) (Grab)* (Grab) 13 0.070768 106 49 1.00 2/6/25 <0.1 0.55 7.07 62.7 14 0.064923 148 45 0.00 2/12/25 <0.1 0.75 7.22 62.1 15 0.071497 128 50 0.00 2/20/25 <0.1 1.2 7.22 65.3 16 0.074280 146 52 0.00 2/27/25 <0.1 1.2 7.17 66.5 17 0.063929 141 44 0.00 18 0.053070 93 37 <1.8 <1.8 0.00 Min <0.1 0.55 7.07 62.1 19 0.045864 119 32 0.00 Mean <0.1 0.93 7.17 64.2 20 0.043998 82 31 2.0 <1.8 0.00 Max <0.1 1.2 7.22 66.5 "Effluent pH samples were collected on 2/6, 2/14, 2/20, and 2/27. 21 0.051911 103 36 0.00 22 0.063609 112 44 0.00 Influent Brine Received Sludge Removal 23 0.065657 113 46 0.00 Date Volume (Gallons) Date Gallons 24 0.063157 123 44 <1.8 <1.8 0.00 N/A NIA NIA NIA 25 0.051259 88 36 0.00 26 0.043828 89 30 0.00 27 0.040181 75 28 <1.8 <1.8 0.00 Effluent Limits 28 0.044509 97 31 0.00 Parameter Units Monthly Avg Weekly Avg Daily Max 29 BOD mg/L 40 60 90 30 Suspended Solids mg/L 40 60 90 31 Oila and Grease mg/L 25 40 75 Min 0.038247 66 27 <1.8 <1.8 0.00 Turbidity NTU 75 100 225 Mean 0.053221 102.8 37.0 3.4 <1.8 0.04 7Sample Median: 23 MPN/ Max 0.074280 148 52 23 <1.8 1.00 Total Coliform More than once in 30 days: 240 100 mL Total 1.490193 Effluent daily (dry weather) flow NTE 0.2/ MGD (mean). Daily Maxiumum: 2,400 Chlorine Residual mg/L 61 Month! Median: 0.3 1.2 pH pH units Between 6.0 9.0 Icertify under penalty of perjury that the foregoing is true and accurate and that Settleable Solids mL/L 1.0 1.5 3.0 the sampling procedure and analysis used are as specified in the Waste *** *** Discharge Order for this facility. BODITSS Removal % 275% SIGNATURE: DATE: PRINTED NAME: TITLE: DISCHARGER SELF-MONITORING California Regional Water Avila Beach ORDER R3-2017-0025 Control CSD Quality Board, NPDES CA0047830 Central Coast Region Wastewater Treatment WDID 3 400101001 Monthly report due last day of following month Facility Month: FEBRUARY 2025 Annual report due January 30 Process Sampling MBR MBR Parameter Influent Aeration (mg/L) (24HC) (grab) Date 2/6/25 2/6/25 BOD 85 (mg/L) Total Suspended Solids 54 7,200 (mg/L) Volatile Suspended Solids 6,100 (mg/L) The process sampling results attached were required by the manufacturer for the first year of operation of the WWTP. Avila Beach CSD staff have elected to continue monthly process sampling beyond this requirement: to monitor, plant performance. The constituents/requeney may change at the discretion of Avila Beach CSD. Fa SNOT7VS NOW aEd SNOTTVS NO V 0 1/bw 0 ? 9 6 00 W & 42 0 5 7/bw - I 17V5 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors 9 FROM: Brad Hagemann, General Manager DATE: March 18th, 2 2025 SUBJECT: Agreement with Avila Beach Fish & Farmers Market Association (Association) for Use of Electrical Outlets for 2025 Weekly Farmers Market Events Recommendation Direct General Manager to Sign Memorandum of Agreement for Use of Electrical Outlet for 2025 Weekly Fish & Farmers Market Event Discussion: The District has historically allowed the Association to use several power outlets to support the Weekly Fish & Farmers Market Event. The cost for allowing the Association to use District electrical outlets during the weekly Fish & Farmers Market events have been shown to be minimal. For consideration, of the electrical use, the Association has included the CSD as a formal sponsor ofthe Fish & Farmers Market. The draft Memorandum of Agreement for 2025, is consistent with the Agreement used in the past. Staff will ensure that the Memorandum indicates that the Association will: 1. Add the District as an "Additionally Insured Agency" on the Association's Policy; 2. Provide a map ofvendors and their respective connection to the electrical system; 3. Be responsible for maintenance of the electrical breakers and outlets; 4. Ensure all electrical power cords and connections to the outlet are placed in non- hazardous areas and properly installed to avoid any trip hazards; and 5. Initially contact Harbor Patrol and/or County Parks should they need assistance. The District has typically agreed to support the Association in this area in years past with little or no issues. Staff recommends the Board authorize the General Manager to sign the Memorandum for the 2025 Fish & Farmers Market Season. Avila Beach Farmers' Market - 23RD SEASON LIVE MUSIC CALENDAR FRESH PRODUCE e FOOD BOOTHS - 2025 ENTERTAINMENT . FAMILY FUN May 2 FREE TROLLEY RIDES TO THE MARKED - Soul Kool $8PARKING May 9 FRIDAVS48PM Vintage Renegades 5 May 16 The Living Mosh ONTHEPROMENADE May 23 Dave Aguallo - r SOTy,NOF Pets Allowed May 30 Soul Vibe 805 June 6 Burning James Band June 13 Guitar Circus June 20 The 10's June 27 Ras Danny July 4 Sound Investment July 11 Billy Foppiano July 18 Electric Lavendar Train July 25 Melodious Funk SPONSORS August 1 Babylon Rockers Custom House August 8 Red Oak Country Mr. Rick's August 15 Monte Mills & Port San Luis The Lucky Horseshoe Band Avila Beach Community August 22 Services District Woodward Band Coastal Farmers' Market Assoc. Ryan August 30 Dave Aguallo 2025 Avila Beach Fish & Farmers' Market Map San Miguel St Firetruck, CDF #62 Custom House BBQ Chumash Green Love Lavender Plants Cheese Francisco Velasquez Farm Blossoming Baskets Maribel Velasquez Family Farm Rocking Chair Mr. Ricks Ca Bee Company Sanchez Berries Band -electrical use Manager Pier Non Profit/Local Business Massage Henna Sea Barn Daniel's Tacos Bookstore A-Town Pies Fat Cat's Landing Passage Tonio's Tamales Blue Moon in Avila Hummus Roasted Corn Nand's Kitchen Le Ciel Jam Pierfront Hartford Fish I Love to Cater Open Cowboy Cookie- electrical Kettle Corn CA Hot Dog- elcectrical Ohana Chips Recyling/Trash/Sink San Francisco St SUMMARY OF PROPOSED MEMORANDUM OF AGREEMENT Name of Organizations: Avila Beach Farmers' Market Association (ABFMA), Avila Beach Community Services District (ABCSD) Type of Organization: Non-profit Association Primary Contact: Julie Andrews-Scott, Manager Term of Agreement: May 2, 2025 to August 29, 2025 Purpose of Agreement: Operation of a Certified Farmers Market in Avila Beach and the electrical use by restaurant vendors. 1. The ABFFMA will provide general liability coverage additionally insuring the ABCSD. 2. The ABFFMA manager will provide a map of electrical use by vendors to the ABCSD. 3. The ABFFMA is responsible for the maintenance of the breakers and outlets, all repairs will be performed by the ABCSD and paid for by the ABFFMA. 4. The ABFFMA will ensure all cords and attachments to the outlet and placed in non-hazardous areas. 5. The procedure for calling for assistance when the outlets are overloaded include contacting the Harbor Patrol and County Parks, if available. Required Submissions: Liability Coverage 2025 Vendor Map with Electrical Use Contract Oversight: Julie Andrews-Scott ABFMA Manager ABCSD General Manager AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Manager DATE: March 18th, > 2025 SUBJECT: Consider San Luis Obispo Local Agency Formation Commission (LAFCO) Special District Representative Seat Selections Recommendation Consider selecting candidates for the LAFCO Special District Representative Seats BackgroundDiscusion: A nomination period for two vacant LAFCO Regular Member Special District seats ran from December 9, 2024 to February 7, 2025. A total of five nominations were received. The candidates include: LAFCO Seat Term Through December 2026: Owen Davis, San Miguel Community Services District Ed Eby, Nipomo Community Services District Debra Scott, Cambria Community Services District LAFCO Seat Term Through December 2028 Robert Enns, Cayucos Community Services District Navid Fardanesh, Templeton Community Services District The election ballots and candidate interest statements are provided as an attachment to this staff report. Voting instruction: Each District may submit a total of two ballots. One ballot for each ofthe open seats. Attachments: 1. LAFCO Memo and Ballots 2. Candidate's Letters ofInterest San Luis Obispo Local Agency Formation Commission Serving the. Area of San Luis Obispo County LVISC OBISPO CO COMMISSIONERS TO: ACHINDEPENDENTE SPECIAL DISTRICT Chair FROM: ROB FITZROY, EXECUTIVE OFFICER STEVE GRECORY City Member DATE: FEBRUARY 19, 2025 Vice-Chair RE: ELECTION FOR LAFCO SPECIAL DISTRICT MEMBER HEATHER MORENO County Member Summary: A nomination period for two vacant LAFCO Regular Member Special District seats DAWN ORTIZ-LEGG County Member ran from December 9, 2024, to February 7, 2025. A total of five nominations were received. Three individuals have been nominated for the Regular Special District seat term through ROBERT ENNS December 2026, and two individuals have been nominated for the Regular Special District Special District Member seat term through December 2028. As such, an election is required. The candidates are as follows, with resumes and statement of interest attached: VACANT Special District Member LAFCO Seat Term Through December 2026: Ep WAAGE C Owen Davis, San Miguel Community Services District City Member o Ed Eby, Nipomo Community Services District DAVID WATSON Debra Scott, Cambria Community Services District Public Member LAFCO Seat Term Through December 2028: ALTERNATES Robert Enns, Cayucos Sanitary District BRUCE GIBSON Navid Fardanesh, Templeton Community Services District County Member Election Voting Instructions: Each district may submit a total oft two ballots, that is, one ballot for CARLA WIxOM Member each of the open seats, see the attached ballots for your use. The election period will City commence on February 19, 2025, and end on April 18, 2025. BALLOTS ARE DUE APRIL 18, ED EBY 2025,at 5:00 PM. If your District wishes to submit ballots, please place this item on the Special District Member agenda at a meeting of your Board of Directors as soon as possible, or if you have already been delegated by your Board, you may submit a ballot on behalf of your district. MICHAEL DRAZE Public Member Ballots will be tallied at the end of the voting period within 7 days. Eighteen ballots are required for a quorum. If a quorum is not met, the Executive Officer must extend the STAFF balloting for 60 days. If a quorum is not met after the extension period, the Executive Officer may extend the balloting period again or may use alternative methods such as only counting ROB FITZROY the ballots received if less than 18, for example tallying the result from 12 ballots instead of Executive Officer 18. IMELDA MARQUEZ-VAWTER The completed ballot forms may be submitted to the LAFCO office via mail, or Analyst e-mail: mmersesolatoaso. Please make sure the form is signed by the Board MORGAN BING President or General Manager. Analyst Thank you and please contact us' with any questions. MELISSA MORRIS Commission Clerk Attachments: Ballots & Supplemental Nominee Information HOLYWHATLEY Legal Counsel CC. Holly Whatley, LAFCO Legal Counsel Members of the Local Agency Formation Commission San Luis Obispo Local Agency Formation Commission 1042 Pacific Street, Suite A, San Luis Obispo, CA 93401 SLO LAFCO Tel: 805) 781-5795 www.slo.lqfcocgov BALLOT FOR LAFCO SPECIAL DISTRICT MEMBER ELECTION FOR SEAT TERM THROUGH DECEMBER 2026 The (Insert Name of Special District) hereby selects the following individual for the Special District Member seat term through December 2026 on the San Luis Obispo Local Agency Formation Commission (choose one): Owen Davis, San Miguel Community Services District Ed Eby, Nipomo Community Services District Debra Scott, Cambria Community Services District The Board of Director's action was taken on an agenda item on: Insert Date of Board Agenda and Action Item General Manager or Chairman/President Signature Date San Luis Obispo Local Agency Formation Commission 1042 Pacific Street, Suite A, San Luis Obispo, CA 93401 SLO LAFCO Tel: 805) 781-5795 www.slo.lafcocagov BALLOT FOR LAFCO SPECIAL DISTRICT MEMBER ELECTION FOR SEAT TERM THROUGH DECEMBER 2028 The (Insert Name of Special District) hereby selects the following individual for the Special District Member seat term through December 2028 on the San Luis Obispo Local Agency Formation Commission (choose one): Robert Enns, Cayucos Sanitary District Navid Fardanesh, Templeton Community Services District The Board of Director': S action was taken on an agenda item on: Insert Date of Board Agenda and Action Item General Manager or Chairman/President Signature Date 7 Rob FTZroy slo, TASCOIcAgew -73-25 Helle Flercnzes, TAnveiy wreres7ea 7N GARAS SaA7 on LAFCO SAaVA! DISTNET, 7 FeedowAd Vely vouchAth MX VAST PPPPNCAPaTNrS, Iigitien, Desien, BelnsFarm manarement December1963 7l Deceinbernas Served CISAImY 1965 Served IN Keres TArST I HAvE BeenA Dpreclor on The SAn muueleso Board Frem December 2022 Tocurenta MY Goal HAS Been To Contre) The tehT IFcelis annece eSSArY And ouT 06 Contre) SPendms 05 The People 05 SAnmigwels Money Frem You Owen DACIS 7hank Poi Bex39) Senmiggel, CA. 93457 2B as (845) 674-5429 Émail OnoDAvseoml.con. Ed Eby Nominee for LAFCO Special District Member San Luis Obispo County Activities 15 years as LAFCO Special District Member and Alternate 18 years as Nipomo Community Services District (NCSD) Director and current Board President .18 years as Member and Alternate, Water Resources Advisory Committee (WRAC) Statement of Interest and Background My primary interest on LAFCO has been to assure that annexations are supported by robust municipal services and provide benefits to the annexing parties. The NCSD successfully reached an agreement with a developer to completely reimburse us for our infrastructure costs to support 1,300-1,400 new homes in a recent annexation. For that annexation, we were successful in negotiating a property tax sharing agreement with the County opposing their initial position that special districts had no claim to property taxes from newly annexed parcels. At the Nipomo Community Services District, Ihave supported and directed a muli-million-dolar project to bring an additional 3,000 acre-feet of water per year to the Nipomo Mesa, totally rebuilding our sewer plant, and merging the Black Lake Village and Town sewer plants. Prior to my 1999 retirement from Hughes Space and Communications Co., I spent 35 years as a design engineer and program manager in Southern California's aerospace industry. Iam a UCLA graduate with Bachelor of Science and Master of Science in Engineering degrees, and post-graduate studies in technical and management programs. Ihave lived in Nipomo for the last 24 years. In my spare time, I enjoy hiking and growing fruits, vegetables, and native plants. Docusign Envelope ID: 4823A9F3547048EEA0804AC6A8J8ES9 Debra S. Scott, M.S.N., A.P.R.N., F.R.E. Cambria, California 93428 PROFESSIONAL WORK HISTORY 2016-current SELF EMPLOYED Nurse Consultant, Nurse Psychotherapist, Educator Scott Consulting and Investments, LLC California and Nevada LLC 1996-2016 NEVADA STATE BOARD OF NURSING, Reno, Nevada 2002-2016 Executive Director 1996-2002 Associate Executive Director for Nursing Practice 1994-2002 PRIVATE PRACTICE, Nurse Psychotherapist 1994-1996 BHC WILLOW SPRINGS RESIDENTIAL CENTER FOR ADOLESCENTS AND CHILDREN, Reno, Nevada Director of Clinical Services/Nurse Executive 1993-1994 NME MILL CREEK HOSPITAL, Visalia, California Director of Clinical Services 1989-1993 CPC SIERRA GATEWAY HOSPITAL, Fresno, California Director of Clinical Services, 1993 Director of Nursing Services, 1990-1993 Adolescent Nursing Coordinator, 1989-1990 1985-1991 Faron's Viking Market Co-owner, Financial officer 1985-1989 KINGSVIEW CENTER, Reedley, California Supervising RN 1984-1985 VALLEY MEDICAL CENTER, Fresno, California Staff RNI EDUCATION Master of Science in Nursing, Clinical Specialty in Psychiatric Nursing, California State University, Fresno (1994) Bachelor of Science in Nursing, California State University, Fresno (1985) Graduated Cum Laude - California State University, Fresno Fellow, Institute ofRegulatory Excellence, National Council of State Boards of Nursing (2008) Docusign Envelope ID: 4B23A9F3-5470-470-48EE-A080-4AC64838EE59 LICENSURE, CERTIFICATIONS California Registered Nursing License: #RN378009 Nevada Registered Nursing License: #RN25195 Nevada Advanced Practice Registered Nurse License: #291 Council on Licensure, Enforcement and Regulation, Certified nvestigator-Leve. II Continuing Education Provider: #NV000737 PROFESSIONAL ASSOCIATIONS. RECOGNITIONS Nursing Institute of Nevada, Charter member Nevada Action Coalition, co-lead, 2013-present Alumni Association, California State University, Fresno, member Sigma Theta Tau, previous member Nevada Nurses Association, Member NNA Legislative Committee, Member Nevada Nurses Foundation, Endowed Member National Council of State Boards ofNursing (NCSBN), Board of Directors, Director at Large, 2009-2011 Area I Director, 2011-2013 International Council of Nurses, Global Nursing Leadership Institute 2009, Participant, Geneva, Switzerland Nevada Alliance for Nursing Excellence, Member Treasurer, 2010-2013 NCSBN Regulatory Achievement Award, 2013 Nevada Nurses Foundation Acknowledgement, 2014 Nevada Women's Fund, Debra Scott Scholarship, Recognition, 2015 American Association ofl Nurse Practitioners (AANP), Member AANP 2013 State Award for Excellence Recipient Nevada Action Coalition, founding member, 2015-present COMMITTEES. COUNCILS. TASK FORCES, VOLUNTEER WORK Cambria Community Cambria Community Chorale, member since 2017, Board treasurer 2022-present Cambria Community Presbyterian Church, member, serve on Worship Team Cambria Community Services District, Policy Committee member since 2021, Chair 2023-25 Cambria Community Services District, Board ofDirectors 2022, President, 2024-present Cambria Arts Center, member and volunteer since 2020 Cambria Joselyn Center, member since 2017 Cambria Homeless Animal Rescue Team (HART) volunteer/foster 2022 Nevada State Board of Nursing 1994-1996 Disability Advisory Committee, Member 1996-2002 Disability Advisory Committee, Chair Docusign Envelope ID: 4823A9F35470-BEE-ADD4ACBAB3BEESS 1996-2014 Nurse Practice Advisory Committee, Chair 2002-2016 Advanced Practice Advisory Committee, Chair 2016-2017 Disability Advisory Committee, Member California Board of Registered Nursing 1991-1993 Diversion Program Consultant National Council of State Boards of Nursing 2003-2004 Practice, Regulation, and Education Model Revision Subcommittee 2006-2007 Continued Competence Advisory Panel Member 2008-2009 Continued Competence Committee, Chair 2009 Committee on Regulatory Excellence, Board Liaison 2010 Committee on Nurse Licensure Models, Board Liaison 2012 Executive Officer Leadership Succession Committee 2013-2014 NCSBN Leadership Academy Committee 2014-2015 Nurse Licensure Compact Legislative Strategy Team 2015-2016 Nurse Licensure Compact Regulatory Work Group Nevada State 2004-2016 Nevada Health Professions Council, coordinator 2007 Nevada Legislative Healthcare Advisory Task Force 2008 Nevada Attorney General's Regulatory Boards Blue Ribbon Task Force 2011-2016 Governors Workforce Investment Board - Health Care Sector Council, Vice Chair 2013-2014 National Governors Association Veterans' Licensing and Certification Policy Academy 2014 Nevada Division of Public Health, Behavioral Health Pipeline Committee 2013-2016 Nevada Organization of Nurse Leaders, Ex-officio board member 2015-2016 Nevada Ebola Task Force, Chair 2018-2020 Governor's Commission on Behavioral Health, Commissioner 2018-2020 System of Care Subcommittee of the Commission on Behavioral Health, Co-chair 2019-2020 Nevada Alliance for Nursing Excellence, northern co-chair 2019-2020 Nevada Nurses Association, Board member, Director at Large References upon request. Mr. Enns has served on LAFCO since 2013 and has made significant contributions to LAFCO in that time. Mr. Enns graduated from California Polytechnic State University in 1968 with a degree in Industrial Technology from the School of Engineering. He is licensed in California as General Engineering Contractor, General Building Contractor, and Pipeline Contractor with extensive experience in commercial and residential construction and development. He has owned and operated Robert B. Enns Construction, Inc., for the past 40 years. Mr. Enns has been serving on the Cayucos Sanitary District Board since 1991, most of those years as President. He is very involved in his community and is part of several local organizations including the Cayucos Rotary and LAFCO. My name is Navid Fardanesh and I am a director on the Templeton Community Services District (TCSD) Board. I am also a former city planning commissioner in Ripon, California for six years, and had the opportunity to participate in the development of policies to facilitate thoughtful commercial and residential development. As a passionate advocate for creating and implementing well-designed growth plans, I was humbled and excited to receive the LAFCO nomination from my fellow TCSD directors. During my nine years with the TCSD board, including currently as the chairperson, I have gained a thorough understanding of the various challenges that special districts encounter. If elected to LAFCO, one of my goals is to communicate these challenges to the fellow commission members. I would also like to help the special districts utilize LAFCO services through increased communication to achieve their goals. As the representative for the special districts, I would support input from each special district. I would also encourage the commission to discuss each district's goals and then facilitate an efficient process for allocating our limited resources to develop our communities in a manner that our residents will be proud to call San Luis Obispo County their home. My family and I have lived in our wonderful county since 2012. My wife, Cynthia, is the CFO for the Paso Robles Housing Authority and our children are proud alumni of Templeton High School and Cal Poly San Luis Obispo. As a retired dentist, I am grateful to live in this community. Outside my TCSD director position, I am a proud member of Templeton Lions Club, a volunteer barista at Atascadero Bible Church's Sunroom cafe, and a hobby winemaker with my amazing neighbors. would like to be your voice on LAFCO and would appreciate your vote. If you have any questions, please email me at awdferdanesn@gmalcom. Navid Fardanesh, D.D.S. Templeton, CA navidfardanesh@gmal.com Civic Service Experience Templeton Community Services District Board, 2016 - current Chairperson, 2023 - current Atascadero Ground Basin Sustainability Agency Committee, 2018 - current Chairperson, 2024 - current Ripon Planning Commission, 2009 - 2014 Chairperson, 2012 - 2014 Professional Work Experience Dentist, CHC of Central Coast, San Luis Obispo County, CA, 2017 - 2019 Oral Health Program Manager, San Luis Obispo Public Health, 2015 - 2017 Dentist / Practice Owner, Ripon, CA, 2003 - 2014 Dentist / Practice Owner, Danville, CA, 1999 - 2003 Associate Dentist, Fairfield, CA, 1997 - 1999 Education University of California, San Francisco, 1997 Doctorate of Dental Surgery Bachelors of Science, Dental Sciences University of California, Davis, 1993 Bachelors of Science, Biological Sciences Community Service Atascadero Bible Church, Sunroom Cafe, Volunteer Barista, 2024 - current Templeton Lions Club, 2014 - current Club President, 2016 - 2019 Templeton 4-H Club, Community Service Project Leader, 2014 - 2016 Templeton Chamber of Commerce, 2014 - 2017 Ripon Lions Club, 2006 - 2014 Board Treasurer, 2010 - 2014, Board Director, 2008 - 2010 Ripon Chamber of Commerce, 2003 - 2012 Board President, 2004 - 2007, Board Vice President, 2008 Other Interests AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Manager DATE: March 18th, 2 2025 SUBJECT: Consider Integrated Waste Management Authority (IWMA) Special District Representative Seat Selection Recommendation Consider selecting one of the two candidates for the IWMA Special District Representative Seat Background/Discusion: The Special Districts with solid waste powers participate in the IWMA pursuant to a Memorandum of Agreement (MOA). The MOA provides for the appointment of one Special District representative and one alternate. This selection is for one Regular Special District representative on IWMA. The election is being coordinated by the San Luis Obispo County Chapter of the California Special Districts Association in coordination with the IWMA. This representative seat will serve on the IWMA through December 2028. Two nominations have been received and are listed on the attached ballot. The candidates include incumbent Robert Enns, Cayucos Sanitary District and Navid Fardanesh, Templeton Community Services District. The Candidate Letters of Interest and Bios are provided as an attachment to this staff report. Attachments: 1. IWMA Ballot 2. Candidate Letter of Interest Robert Enns Bio Dishct Senrby Cpsana Spicia! Dshvct Eprsnhhve Mr. Enns has served on LAFCO since 2013 and has made significant contributions to LAFCO in that time. Mr. Enns graduated from California Polytechnic State University in 1968 with a degree in Industriat Technology from the School of Engineering. He is licensed in California as General Engineering Contractor, General Building Contractor, and Pipeline Contractor with extensive experience in commercial and residential construction and development. He has owned and operated Robert B. Enns Construction, Inc., for1 the past 40 years. Mr. Enns has been serving on the Cayucos Sanitary District Board since 1991, most of those years as President. He is very involved in his community and is part of several local organizations including the Cayucos Rotary and LAFCO. My name is Navid Fardanesh and I am a director on the Templeton Community Services District (TCSD) Board. - am running for the IWMA representative position to bring a new perspective to the board based on my special district experience. During my nine years with the TCSD board, - have served on the refuse committee for many years. Recently, our district changed service providers, and I was involved in the transition and reviewing the new contract. This experience has helped me understand the concerns of waste haulers and the challenges they face. have attended the last 2 annual WMA seminars which discussed various newly enacted legislation. My goal as your representative will be to inform the districts of all the changes that the waste management industry will encounter in the coming years. Also, I would welcome input from each special district to identify ideas to create stronger partnerships with IWMA. Additionally it is important for IWMA to be fiscally responsible, and 1 will always carefully review the WMA budget to make certain the IWMA rates are as low as possible for our rate payers. regularly attend the CSDA Chapter meetings, as your representative, it will be a great opportunity for me to update you on IWMA and listen to your feedback. If elected, I will be honored to serve as your representative on the IWMA board. My family and I have lived in our wonderful county since 2012. My wife, Cynthia, is the CFO for the Paso Robles Housing Authority and our children are alumni of Templeton High School and Cal Poly San Luis Obispo. As a retired dentist, I am grateful to live in this community. Outside my TCSD director position, I am a proud member of Templeton Lions Club, a volunteer barista at Atascadero Bible Church's Sunroom cafe, and a hobby winemaker with my amazing neighbors. I humbly ask for your vote for IWMA board. If you have any questions, please email me at navdardanesn@gmal. .com. Navid Fardanesh, D.D.S. Templeton, CA widhardmech@gmailcon Civic Service Experience Templeton Community Services District Board. 2016 - current Chairperson. 2023 - current Atascadero Ground Basin Sustainability Agency Committee. 2018 - current Chairperson, 2024 current Ripon Planning Commission, 2009 - 2014 Chairperson, 2012 - 2014 Professional Work Experience Dentist, CHC of Central Coast. San Luis Obispo County. CA. 2017-2019 Oral Health Program Manager, San Luis Obispo Public Health, 2015 - 2017 Dentist / Practice Owner, Ripon, CA, 2003 - 2014 Dentist / Practice Owner. Danville. CA. 1999 - 2003 Associate Dentist. Fairfield, CA. 1997 - 1999 Education University of California, San Francisco, 1997 Doctorate of Dental Surgery Bachelors of Science. Dental Sciences University of California, Davis, 1993 Bachelors of Science, Biological Sciences Community Service Atascadero Bible Church, Sunroom Cafe, Volunteer Barista, 2024 - current Templeton Lions Club, 2014 - current Club President. 2016 - 2019 Templeton 4-H Club, Community Service Project Leader, 2014 - 2016 Templeton Chamber ofCommerce, 2014 - 2017 Ripon Lions Club, 2006 - 2014 Board Treasurer, 2010 - 2014, Board Director, 2008 - 2010 Ripon Chamber of Commerce, 2003 - 2012 Board President, 2004 - 2007, Board Vice President, 2008 Other Interests Gardening, hobby winemaking hiking. reading California Special Brad Hagemann, President Districts Association Scott Duffield, Vice-President CSDA Districts Stronger Together Kristen Gelos, Treasurer Jana Etteddgue, Secretary San Luis Obispo County Chapter Mission Statement To provide an accessible platform for collaboration. education. and advocacy among special districts in the San Luis Obispo region BALLOT FOR IWMA AUTHORIZED DISTRICT REPRESENTATIVE The (Insert Name of Authorized District) Hereby selects the following individual for Authorized District Representative on the San Luis Obispo County Integrated Waste Management Authority (IWMA). Vote for one: Robert Enns, Cayucos Sanitary District JNavid Fardanesh, Templeton Community Services District The Board of Director's action was taken on an agenda item on: (General Manager or Chairman/President, (Email address) AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Manager 7 DATE: March 18, 2025 SUBJECT: Consider Approval of Amendment # 1 to the August 25, 2016, Amended and Restated Solid Waste Collection Franchise Agreement Between South County Sanitary Services, Inc., and Avila Beach Community Services District (Collection Franchise Agreement) Staff Recommendation: Authorize the General Manager to execute Amendment #1 to the Collection Franchise Agreement Discusiom/Backeround: 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, 2025. At the November 12th meeting the Board approved the proposed Rate Setting Methodology, the draft Hearing Notice and set a rate increase hearing date for January 14, 2025. At the January 14, 2025, Board meeting, the Board conducted the rate hearing and approved the solid waste rate increase with an effective date of January 1, 2025. The Board deferred consideration of Amendment #1 to the Collection Franchise Agreement and directed staff review the. Amendment in more detail and bring it back for Board consideration at a future meeting. Staff and legal counsel concluded their review of Amendment #1 to the Collection Franchise Agreement and recommend the Board consider adoption oft the Amendment. Amendment #1 and the Appendix 1 to the Rate Adjustment Methodology are provided as attachments to this staff report. Attachments: 1. Amendment #1 to the Collection Franchise Agreement 2. Appendix 1 to the Annual Rate Adjustment Methodology AMENDMENT #1 TO THE AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN SOUTH COUNTY SANITARY SERVICES, INC. AND AVILA BEACH COMMUNITY SERVICES DISTRICT THIS AMENDMENT #1 to the Amended and Restated Solid Waste Collection Franchise Agreement between the Avila Beach Community Service District (District) and South County Sanitary Service, Inc. (Company) is made and entered into this 14th day of. January, 2025. WHEREAS, the District and Company are parties to the Amended and Restated Solid Waste Collection Franchise Agreement, dated August 25, 2016, pursuant to which the Company renders solid waste, recyclable material and green waste collection, processing and disposal services to residents and businesses in the District; and WHEREAS, the process by which solid waste rates charged by Company to residents and businesses under the Franchise Agreement 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 ("1994 Rate Manual"); and WHEREAS, the 1994 Rate Manual is outdated and the District and the Company mutually desire 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 the features and parameters of a new methodology; and WHEREAS, the District Board of Directors heard a presentation regarding the features and parameters of a new methodology on November 12, 2024; and WHEREAS, on November 12, 2024, the District Board of Directors voted unanimously to direct staff and the Company to mail written notice to residents and businesses in the District regarding a) the features and parameters of the new methodology, b) the proposed adjustments to solid waste rates pursuant to the new methodology effective January 1, 2025, and c) the time and place of a public hearing regarding the proposed solid waste rates and the new methodology; and 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 Appendix 1; and WHEREAS, Appendix 1 includes the features and parameters of the new methodology that were previously presented to the District Board of Directors; and 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 administration, and cost-effectiveness; and WHEREAS, District and Company mutually desire to amend the Agreement to replace references to the 1994 Rate Manual with Appendix 1. Page 1 AMENDMENT #1 TO THE AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN SOUTH COUNTY SANITARY SERVICES, INC. AND AVILA BEACH COMMUNITY SERVICES DISTRICT NOW THEREFORE, 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 "Appendix: 1, Annual Solid Waste Rate Adjustment Methodology." 2. The second paragraph of Section 11.1 General shall be deleted in its entirety and replaced with the following: 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 in its entirety and replaced with the following: Requests for Rate Adjustments. Contractor shall submit to the District an application for rate review annually in accordance with the procedures described in the Appendix 1, Annual Solid Waste Rate Adjustment Methodology. 4. Section 11.5. Special Interim Rate Review shall be deleted in its entirety and replaced with the following: Extraordinary adjustments may be made in accordance with the procedure set forth in the Appendix 1, Annual Solid' Waste Rate Adjustment Methodology. 4. Section 11.6 Allowable Profit shall be deleted in its entirety and replaced with the 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. 5. Section 11.9. Rate Setting Agreement with Cold Canyon Landfill; Tipping Fee Increases shall be deleted in its entirety and replaced with the following: Tipping Fees. Adjustments to tipping fees may be made in accordance with the procedure set forth in the Appendix 1, Annual Solid Waste Rate Adjustment Methodology. Page 2 AMENDMENT #1 TO THE AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN SOUTH COUNTY SANITARY SERVICES, INC. AND AVILA BEACH COMMUNITY SERVICES DISTRICT 6. Appendix 1 - Annual Rate Adjustment Methodology, is hereby added to the Agreement, as attached hereto. 7. District and Company agree and acknowledge that, except as explicitly modified by this Amendment or by necessary implication, the Agreement remains in full force and effect. In the event of a conflict between the terms of the Agreement and this Amendment, the terms of this Amendment shall prevail, and the terms of Appendix 1, Annual Rate Adjustment Methodology, shall prevail in the event of a conflict relating to rate setting procedures among or between the foregoing documents. 8. Each Party executing this Amendment represents and warrants that it is duly authorized to cause this Amendment to be executed and delivered. 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 instrument. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment the day and year first above written. Date (month, day and year) Date (month, day and year) South County Sanitary Service, Inc. Avila Beach Community Services District By: By: Its: Its: By: By: Attest Attest APPROVED AS TO 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 of 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. In 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 the 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 calculations shall be rounded to the nearest dollar. A. Calculation of CPI Adjustment to Franchisee's Collection Services and Post-Collection Services 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. CUUROO00SEHGO2. 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 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 If the 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 on the rates and applied to 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 dollar. 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 of example, if the percentage Page 1 of 10 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, if 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 projection for Post-Collection Services shall be $100,659. 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- Collection Services): Year 1 Collection Services: $174,605 12-month average CPI index increase: 6.00% $174,605 X (1+5.00%*) = $183,335 *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% $183,335 x (1+5.0%*): = $192,502 *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% $192,502 x (1+5.0%*) = $202,127 *3.00% + 1.00% carried forward from Year 1 + 1.00% carried forward from Year 2 The above is also demonstrated in Table 1, on the following page. Page 2 of 10 Appendix 1 Annual Rate Adjustment Methodology Table 1 - Example of CPI Cap and Carryforward 2025 2026 2027 2028 Collection Services $174,605 $183,335 $192,502 $202,127 12-Month Average CPI 6.00% 6.00% 3.00% CPI Adjustment (5% Cap) 5.00% 5.00% 5.00% 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 a 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 and in 2026 and thereafter, Franchisee's Profit Allowance shall be 10% of the cost projection 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 to a 2% CPI Adjustment), Franchisee's 2026 Profit Allowance for the purposes of calculating Index- Based Rate Adjustment shall be $17,810. C. Calculation of Franchise Fee Franchisee pays the District a 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 is calculated as 10% of Franchisee's annual Total Cost Projection, per Section 2.E below, rounded to 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 a function of Franchisee's gross revenues received from Customers in the District and may differ from the amount used in calculating adjustments to the Maximum Service Rates. D. Calculation of Annual Revenue Reconciliation 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 Reconciliation. 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 be included in the 2027 annual Total Cost Projection. By way of example, if Franchisee's 2025 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 Franchisee's Total Cost Projection for 2027. Table 2, on the following page, provides an example of the case in which there is a 1% shortfall of Page 3 of 10 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 in 2025, which is added to the Total Cost Projection in 2027. The 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 2026 2027 2028 2029 Collection Services $174,605 $183,335 $192,502 $202,127 $212,234 Profit Allowance $15,714 $18,334 $19,250 $20,213 $21,223 Post-Collection Services $98,686 $103,620 $108,801 $114,241 $119,953 Franchise Fee $32,112 $33,921 $35,974 $37,775 $39,667 Revenue Reconciliation Example N/A N/A $3,211 $3,392 $3,597 Total Cost Projection $321,117 $339,210 $359,738 $377,748 $396,675 Indexed Rate Adjustment 5.63% 6.05% 5.01% 5.01% Table 2a Example Revenue Reconciliation of +1% Annually 2025 2026 2027 2028 2029 Collection Services $174,605 $183,335 $192,502 $202,127 $212,234 Profit Allowance $15,714 $18,334 $19,250 $20,213 $21,223 Post-Collection Services $98,686 $103,620 $108,801 $114,241 $119,953 Franchise Fee $32,112 $33,921 $35,260 $37,021 $38,876 Revenue Reconciliation Example N/A N/A $(3,211) $(3,392) $(3,526) Total Cost Projection $321,117 $339,210 $352,602 $370,210 $388,760 Indexed Rate Adjustment 5.63% 3.95% 4.99% 5.01% 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- in to evaluate alignment with its revenue forecast and conditions outlined in 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 of 10 Appendix 1 Annual Rate Adjustment Methodology confer process to discuss and determine an appropriate resolution, which may include a rate adjustment in January 2026 if necessary. E. Calculation of Total Cost Projection 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 if 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 ending June of 2025 is 2%. Table 3 - 2026 Total Cost Projection at 5% CPI Value for 2026 2025 2026 Collection Services $174,605 $183,335 Profit Allowance $15,714 $18,334 Post-Collection Services $98,686 $103,620 Franchise Fee $32,112 $33,921 Total Cost Projection $321,117 $339,210 Table 4 - 2026 Total Cost Projection at 2% CPI Value for 2026 2025 2026 Collection Services $174,605 $178,097 Profit Allowance $15,714 $17,810 Post-Collection Services $98,686 $100,659 Franchise Fee $32,112 $32,952 Total Cost Projection $321,117 $329,518 F. Calculation of Annual Index-Based Rate Adjustments 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, minus 100%, rounded to the nearest hundredth of a percent. 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 of 10 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 January 1, 2026. 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 of this Exhibit. 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 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 January 15, 2029 and District's request for Cost-Based Rate Adjustment 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 Rate. Adjustment effective in the same rate year 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. If neither 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, 2030 and subject to the terms and conditions of Section 2 of this Exhibit. 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, 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 to 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 Rate Adjustment prior to August 30, 2034. 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 a 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 Page 6 of 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 by District. Cost-Based Rate Adjustments shall be prepared and calculated in accordance with the steps described 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 the 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 the forecast. Upon submission of such 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 projections, Franchisee shall assemble and submit its forecasts of: 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 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 by 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. 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 and 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 material variances compared to prior years. C. Projected costs of Post-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 Post-Collection Services include landfill disposal, organics processing, recyclables processing and marketing, related-party transportation, and related-party rent and shall be delineated Page 7 of 10 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 by 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 not limited to: i. Entertainment and non-work related travel expenses, unless authorized in advance by District. ii. Advertising for services not within the scope of this Agreement or outside of the service area of Avila Beach Community Services District. ii. Fines or penalties of any nature. iv. Liquidated damages assessed under this Agreement. V. Federal or State income taxes. vi. Profit sharing payments not related to an IRS approved pension program. vii. Charitable or political donations. viii. Attorneys' fees and other expenses incurred by Franchisee in any court proceeding in which District and Franchisee are adverse parties, unless Franchisee is the prevailing party in said proceedings. 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 of 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 management control. e. Franchisee's audited financial statements, and any other documentation as deemed necessary by thel District, will be reviewed to determine Franchisee's cost projections for each of the foregoing categories during the yeari involved. District will use the financial statements to determine that costs have actually been incurred and have been assigned to the appropriate category. f. District may adjust the actual costs in two ways: (1) to exclude any non-allowable Page 8 of 10 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 Franchisee's Profit Allowance shall be 10% of the cost projection for Collection Services, rounded to the nearest dollar. C. Calculation of Franchise Fee Calculation of Franchise Fee shall be calculated in accordance with Section 2.C, above, for the applicable year as appropriate. D. Calculation of Annual Revenue Reconciliation Calculation of Annuai Revenue Reconciliation shall be calculated in accordance with Section 2.D, above, for the applicable year as appropriate. E. Calculation of Total Cost Projection Calculation of Total Cost Projection shall be calculated in accordance with Section 2.E, above, for the applicable year as appropriate. F. Calculation of Cost-Based Rate Adjustment 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 Service Rates and be effective January 1 of the forthcoming year. 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 corresponding with the delay 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 Franchisee. 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 Page 9 of 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 such increase or decrease in costs, revenues or Fees, commencing from the 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 District. A. "Change in Scope" shall mean any change in the services provided by the Franchisee under the Agreement whether proposed by the Franchisee or by the District. 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 issuance of final regulations under existing laws. "Change in Fees" shall mean any change in franchise fees, vehicle impact fees and other fees charged to the Franchisee by the District connection with the services provided by the Franchisee under the Agreement the cancellation of any existing fees, and the adoption of any new 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 Scope or Change in Law. 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 in Law, Change in Fees, and/or Extraordinary Cost Increase or when the Franchisee begins incurring costs for the Change in Law, Change in Fees, or Extraordinary Cost Increase, whichever is later. In 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 to 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 Service resulting from such Change. Extraordinary adjustments to Maximum Service Rates for a qualifying Change in Scope or Change in Law, for a Change in Fees, or for an Extraordinary Cost Increase shall take effect as of the beginning of the next year and will include all impacts of 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 of 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 projections. Page 10 of 10 AVILA BEACH COMMUNITY SERVICES DISTRICT AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT THIS AMENDED AND RESTATED SOLID WASTE COLLEÇTION FRANCHISE AGREEMENT (this "Agreement") is entered into on the 25'day of August, 2016, by and between the AVILA BEACH COMMUNITY SERVICES DISTRICT, a Community Services District organized and operated pursuant to $61000 et seq. of the Government Code ("District"), SOUTH COUNTY SANITARY SERVICES, INC., a California corporation and wholly-owned subsidiary of Waste Connections, Inc., a Delaware corporation ("Contractor") for Contractor to provide Garbage, Recycling, Green Waste and Organic Waste Collection and disposal services within the District boundary is entered into with the following Recitals: RECITALS A. District and Contractor are parties to that certain Solid Waste Franchise Agreement (the "Prior Agreement") that was authorized by District on November 10, 2005; and B. District and Contractor now desire to further amend and restate, in its entirety, the Prior Agreement, as set forth herein; and C. District declares its intention of maintaining reasonable rates and high quality service for Garbage Service and the Collection, processing, and marketing of Recyclable, Green Waste and Organic Waste Materials; and D. Contractor is investing several million dollars to expand the Cold Canyon Landfill to provide the additional capacity necessary to serve District in the Collection and processing of Solid Waste for the Term; and E. On September 28, 2014, the Governor approved AB 1826 which requires each jurisdiction, on and after January 1, 2016, to implement an Organic Waste recycling program to divert Organic Waste from certain businesses; and F. In order to implement AB 1826's requirements, Contractor is contributing real property and a building and also. has proposed to enter into a long term agreement with Hitachi Zosen Inova to construct and operate a Kompogas facility at Contractor's property located at 7388 Old Santa Fe Road, San Luis Obispo, to process Organic Waste generated by District; and G. In order to finance such facility, Contractor requires a twenty (20)-year commitment from District to divert all Organic Waste to Contractor; and ABCSD AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT Page 1 of 47 100069473.DOC.) H. District finds that an exclusive franchise granted to a private company for the Collection and processing of Organic Waste is the most effective and efficient way to Collect and divert residential Food Waste and Green Waste within District; and I. District further finds that the construction of an Organic Waste processing facility is in the best interests of District, will help promote the health, safety and welfare of the community and the environment and otherwise furthers the goals and objectives of AB 1286. J. By this Agreement, the parties wish to set forth the terms and conditions of Contractor's s provision of Solid Waste Collection and disposal. NOW, THEREFORE, for and in consideration of the mutual promises herein contained, the adequacy of which is hereby acknowledged, it is hereby agreed by and between District and Contractor as follows: SECTION 1. DEFINITIONS. For purposes of this Agreement, the defined terms, phrases, words, abbreviations, and their derivations shall have the following meaning given in this Section. 1.1 "AB 939" means the California Integrated Waste Management Act of 1989, as it may be amended from time to time. 1.2 "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect common ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates with" Contractor and included within the "Affiliates" as used herein, An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date ofthis Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this Section 1.2 and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.3 "Agreement" means this residential and commercial Amended and Restated Solid Waste Collection Franchise Agreement (including all exhibits and attachments, and any amendments thereto) between District and Contractor. 1.4 "Billings" means any and all statements of charges for services rendered by Contractor pursuant to this Agreement. ABCSD. AMENDED AND RESTATED SOLID WASTE COLLECTION FRANCHISE AGREEMENT Page 2 of 47 FAAK0472 nnc3