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: vilacsd@gmail.com SPECIAL BOARD MEETING 1 PM Tuesday, June 24th, 2025 STAFF AND PUBLIC MAY PARTICIPATE IN THIS MEETING IN PERSON AT THE ADDRESS ABOVE OR, VIA TELECONFERENCE AND/OR ELECTRONICALLY. ZOOM MEETING: htps/us0webzom.s41117987571 Meeting ID: 411 178 7571 Password: No Password Required. BY PHONE: I-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. POBLIC COMMENT Members of the public wishing to comment on or bring forward any items concerning District operations which do not appear on today's agenda may address the Board now. Please state your name and address before addressing the Board 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 Sheriffl 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 May 13th, 2025, Regular Board Meeting B. Monthly Financial Review for April & May 2025 C. General Manager and District Engineer Report D. Water and Wastewater Operations Reports for May 2025 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. Review/Amendment of General Manager Contract (Action Required: Receive Staff Report and Provide Direction to Staff) B. Avila Valley Region Wastewater Alternatives Analysis (Action Required: Receive Staff Report and Provide 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 July gth, 2025, Regular Board meeting has been canceled. The next Meeting is scheduled for Tuesday, August 12th, 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 public inspection at thet 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 made by a person with a disability who requires the modification or accommodation in order toj participate at the above referenced public meeting by contacting the District at 805-595-2664. MINUTES OF REGULAR BOARD OF DIRECTORS MEETING Avila Beach Community Services District Tuesday, May 13th, 2025 1:00 P.M. 1. CALL TO ORDER President Kelley called the meeting of the Board of Directors of the Avila Beach Community Services District, to order at 1:00 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 Kristin Berry Ara Najarian Board Members Present via Zoom: None Board Members Absent: John Janowicz 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 3. PUBLIC COMMENTS - None 4. INFORMATION AND DISCUSSION ITEMS A. County Reports Sheriff's Report: The Sheriff' s report was given by Kristi Dibbern who read the statistics report provided by the sheriff's office. Thirty-eight calls for service were reported during the month of April. Two assault and battery, 5 disturbances, 1 theft, 1 vandalism, 8 suspicious circumstances, 7 enforcement stops, and 14 preventative patrol stops were reported. Cal Fire: Chief Paul Lee was not present at the Board meeting due to a scheduling conflict. No Report. 5. PUBLIC COMMENT ON CLOSED SESSION ITEM None. 6. CLOSED SESSION The Board convened to closed session at 1:10 PM to discuss the following items: 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 the regular session at 1:55 PM. No reportable action was taken by the Board of Directors during the closed session. 7. CONSENT ITEMS: After Board discussion and no public comment, Director Berry made a motion to approve the Consent Items. Director Najarian seconded the motion, and it passed with a roll call vote 4-0. AYES Kristin Berry Ara Najarian Howie Kennett Pete Kelley NOES: None ABSENT: John Janowicz 8. PULLED CONSENT ITEMS. None. 9. BUSINESS ITEMS: 9A. PUBLIC HEARING REGARDING ADOPTION OF THE FY 2025/26 ANNUAL BUDGET OPEN PUBLIC HEARING: 2:00 pm No public comment. CLOSED PUBLIC HEARING: 2:01pm 9A. Consider Adoption of Resolution No. 2025-03 Appropriations Limitations. Director Najarian made a motion to adopt Resolution No. 2025-03. Director Berry seconded the motion, and it passed with a roll call vote 4-0. AYES: Ara Najarian Howie Kennett Kristin Berry Pete Kelley NOES: None ABSENT: John Janowicz 9A. Consider Adoption ofFY 2025/26 Budget & Resolution No. 2025-04 GM Hagemann summarized the Final Draft of the FY 2025/26 budget. The Board agreed to adopt the draft budget with no rate increase to water and sewer customers. Director Najarian made ai motion to adopt Resolution No. 2025-04. Director Berry seconded the motion, and it passed with a roll call vote 4-0. AYES: Ara Najarian Howie Kennett Kristin Berry Pete Kelley NOES: None ABSENT: John Janowicz 9B: District General Counsel Contract Review. GM Hagemann summarized the Staff Report noting that the District retained Price, Postel and Parma (PPP), LLP as their General Counsel in January 2021. The Legal Services Agreement with PPP, includes a clause that stated, "the hourly rates for legal services referenced above, shall be subject to a 3% annual increase. 99 PPP has never increased their fees since January of 2021. In April 2025, PPP proposed a 6% increase in their fees effective June 1, 2025. The Board agreed that PPP has been providing good legal counsel services to the District over the past four plus years and concurred with their proposed rate increase. Director Kennett made a motion to approve the legal counsel's proposed rate increase. Director Najarian seconded the motion, and it passed with a roll call vote 4-0. AYES: Howie Kennett Ara Najarian Kristin Berry Pete Kelley NOES: None ABSENT: John Janowicz 9C: Consider Awarding a Professional Services Contract for the installation of water meters. GM Hagemann summarized the Staff Report and recommended the Board award a professional services contract to Grace Environmental to assist staff with the installation of water meters. Director Berry made a motion to approve the bid. Director Najarian seconded the motion, and it passed with a roll call vote 4- 0. AYES: Kristin Berry Ara Najarian Howie Kennett Pete Kelley NOES: None ABSENT: John Janowicz 9D: Avila Valley Regional Wastewater Alternative Analysis. GM Hagemann provided a summary of the Avila Valley Regional Wastewater Alternatives Analysis prepared for the San Miguelito Mutual Water Company (SMMWC); and recommended the Board form an Ad Hoc Subcommittee for the project. Directors Kelley & Janowicz agreed to serve on the Ad Hoc Committee with Director Berry to serve as an alternate. A motion was made by Director Najarian seconded by Director Kennett and passed with a roll call vote 4-0. AYES: Ara Najarian Howie Kennett Kristin Berry Pete Kelley NOES: None ABSENT: John Janowicz Staffreminded the Board that The NEXT MEETING will be held on Tuesday, June 24th, 2025, at 1:00PM. ADJOURNMENT: The meeting was adjourned at approximately 2:52 PM. These minutes are not official nor are they 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 pn DATE: June 24th, 2025 ITEM: 7.B Monthly Financial Review for April & May Recommendation: Receive and file report. Overall Monthly Summary During the month of April, the District deposited $170,209.83 and incurred $128,423.91 in expenses (cash basis). Water and sewer revenue for the month of April totaled $86,286.00 and the District received $34,418.52 in county tax revenue. In May the District deposited $360,190.89 and incurred $104,883.50 in expenses (cash basis). Water and sewer revenue for the month of May totaled $81,354.62 and the District deposited $243,917.80 in count tax revenue. Detailed financial reports including Balance Sheets, Profit and Loss, and Checks by Fund are provided for your information for April & May. Utility Service Billing The District billed approximately $85,424.39 in water and sewer service charges in April & $80,535.38 in May. Customer Rate Assistance reduced billing charges to the District in the amount of $786.11 for April & $743.74 in May. 1:07 PM Avila Beach Community Services District 05/13/25 Profit & Loss Accrual Basis April 2025 Apr 25 Ordinary Income/Expense Income 4000 . Income Summary 4010 . Operating Revenue 86,286.00 4030 . County Taxes 34,418.52 4600 - Interest Income 47,614.05 Total 4000 . Income Summary 168,318.57 Total Income 168,318.57 Gross Profit 168,318.57 Expense 5100 . Merchant Credit Card Fees 5110 . Amex 15.00 5120 . Chase Paymentech 160.05 5140 - Invoice Cloud 560.44 Total 5100 - Merchant Credit Card Fees 735.49 5200 . Payroll Expenses 5210 . Gross Wages 5211 . Regular Pay 14,669.24 5213 . Overtime Pay 396.84 5214 - Sick Pay 1,500.35 5216 . Vacation Pay 99.21 Total 5210 . Gross Wages 16,665.64 5230 . Payroll Taxes 234.82 5240 . Health & Medical Exp. 5242 . Health Ins / Other 7,031.60 Total 5240 . Health & Medical Exp. 7,031.60 5250 . PERS Company Pd Expense 5255 - PERS Co Pd Shawn 894.46 5256 . PERS Co Pd Kristi 397.13 5250 . PERS Company Pd Expense - Ot... 35.42 Total 5250 - PERS Company Pd Expense 1,327.01 5280 . Payroll Administration & Misc. 117.28 Total 5200 . Payroll Expenses 25,376.35 6000 . Administrative Overheads 6102 . Accounting 5,887.81 Page 1 1:07 PM Avila Beach Community Services District 05/13/25 Profit & Loss Accrual Basis April 2025 Apr 25 Total Expense 149,873.75 Net Ordinary Income 18,444.82 Other Income/Expense Other Income 7200 . Non-Operating Income 7270 . Recycled Water Study -705.00 Total 7200 - Non-Operating Income -705.00 Total Other Income -705.00 Net Other Income -705.00 Net Income 17,739.82 Page 3 1:07 PM Avila Beach Community Services District 05/13/25 Profit & Loss Accrual Basis April 2025 Apr 25 Ordinary Income/Expense Income 4000 . Income Summary 4010 . Operating Revenue 86,286.00 4030 - County Taxes 34,418.52 4600 - Interest Income 47,614.05 Total 4000 - Income Summary 168,318.57 Total Income 168,318.57 Gross Profit 168,318.57 Expense 5100 . Merchant Credit Card Fees 5110 . Amex 15.00 5120 - Chase Paymentech 160.05 5140 . Invoice Cloud 560.44 Total 5100 - Merchant Credit Card Fees 735.49 5200 . Payroll Expenses 5210 - Gross Wages 5211 . Regular Pay 14,669.24 5213 . Overtime Pay 396.84 5214 . Sick Pay 1,500.35 5216 . Vacation Pay 99.21 Total 5210 . Gross Wages 16,665.64 5230 - Payroll Taxes 234.82 5240 . Health & Medical Exp. 5242 - Health Ins / Other 7,031.60 Total 5240 . Health & Medical Exp. 7,031.60 5250 . PERS Company Pd Expense 5255 . PERS Co Pd Shawn 894.46 5256 - PERS Co Pd Kristi 397.13 5250 - PERS Company Pd Expense - Ot... 35.42 Total 5250 - PERS Company Pd Expense 1,327.01 5280 - Payroll Administration & Misc. 117.28 Total 5200 . Payroll Expenses 25,376.35 6000 . Administrative Overheads 6102 . Accounting 5,887.81 Page 1 1:07 PM Avila Beach Community Services District 05/13/25 Profit & Loss Accrual Basis April 2025 Apr 25 Total Expense 149,873.75 Net Ordinary Income 18,444.82 Other IncomelExpense Other Income 7200 - Non-Operating Income 7270 - Recycled Water Study -705.00 Total 7200 - Non-Operating Income -705.00 Total Other Income -705.00 Net Other Income -705.00 Net Income 17,739.82 Page 3 1:07 PM Avila Beach Community Services District 05/13/25 Balance Sheet Accrual Basis As of April 30, 2025 Apr 30, 25 ASSETS Current Assets Checking/Savings 1000 . Cash Summary 1005 - Customer Cash 540.35 1008 . Petty Cash 65.72 1010 . Pacific Premier Checking 147,055.45 1015 . Five Star Bank Checking 991,572.32 1017 . Five Star Bank MM 214,937.01 1050 . LAIF 4,298,467.58 Total 1000 - Cash Summary 5,652,638.43 Total Checking/Savings 5,652,638.43 Accounts Receivable 1200 . *Accounts Receivable 159,482.64 Total Accounts Receivable 159,482.64 Other Current Assets 1250 . Receivables 1255 - Interest Receivable 46,340.73 1270 - Taxes Receivable 57,582.87 1280 . Water & Sewer Billings 1281 . Other 1 El Dorado Billings -520.30 1282 . Other 2 El Dorado Billings -11,523.64 1280 - Water & Sewer Billings - Other 116,997.04 Total 1280 - Water & Sewer Billings 104,953.10 Total 1250 . Receivables 208,876.70 1299 - Allowance for doubtful account -193,053.94 1400 . Prepaid Summary 1410 . Prepaid Insurance 5,738.92 Total 1400 . Prepaid Summary 5,738.92 Total Other Current Assets 21,561.68 Total Current Assets 5,833,682.75 Fixed Assets 1600 : Fixed Assets & Acc. Depr. 1620 . Fixed Assets - Sanitary 1622 . Land 60,314.10 1626 . Collection Assets 1627 . Collection Assets Cost 1,517,268.97 1628 . Collect Assets Accum Depr -886,648.15 Total 1626 * Collection Assets 630,620.82 Page 1 1:07 PM Avila Beach Community Services District 05/13/25 Balance Sheet Accrual Basis As of April 30, 2025 Apr 30, 25 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 6,734,122.62 1638 - Treatment Plant Accum Dep -1,740,709.80 Total 1635 . Treatment Plant 5,098,412.82 1642 - Treatment Equipment 1643 - Treatment Equip Cost 1,416,442.58 1644 . Treatment Equip Accum Depr -787,343.49 Total 1642 . Treatment Equipment 629,099.09 Total 1620 . Fixed Assets - Sanitary 6,660,116.01 1650 . Fixed Assets - Water 1652 - Equipment 1653 . Equipment Cost 21,136.28 1654 . Equipment Accum Depr -21,136.28 Total 1652 . Equipment 0.00 1656 . Distribuation Assets 1657 - Distribuation Assets Cost 1,270,571.73 1658 - Dist Assets Accum Depr -818,479.98 Total 1656 . Distribuation Assets 452,091.75 Total 1650 - Fixed Assets - Water 452,091.75 1670 . Vehicles - Admin 1671 . 2023 Ford F150 Cost 53,960.62 1672 . 2023 Ford F150 Acc Depr -6,295.96 Total 1670 - Vehicles Admin 47,664.66 1680 . Structures - Fixed Asset 1681 . Structures GFAAG - Sani & FA 82,207.64 1682 . Gen / Fire Accum Dep -72,362.06 Total 1680 . Structures - Fixed Asset 9,845.58 Total 1600 . Fixed Assets & Acc. Depr. 7,169,718.00 Page 2 1:07 PM Avila Beach Community Services District 05/13/25 Balance Sheet Accrual Basis As of April 30, 2025 Apr 30, 25 Total Fixed Assets 7,169,718.00 Other Assets 1800 . Deferred Outflows of Resources 70,696.00 Total Other Assets 70,696.00 TOTAL ASSETS 13,074,096.75 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 73,241.48 2142 . FS MC SP x6340 31,588.85 2143 . FS MC KD x3018 7,251.71 2140 . Five Star MC Control x0557 - Other -107,455.23 Total 2140 . Five Star MC Control x0557 4,626.81 Total Credit Cards 4,626.81 Other Current Liabilities 2105 - Accrued Expense -32,194.03 2200 - Payroll Liabilities 2240 - Health Insurance 2241 - Employee 8,400.00 Total 2240 . Health Insurance 8,400.00 2255 . Accrued Interest FB Auditor 66,035.00 2260 . Vacation Payable 9,018.00 2262 . Sick Pay Accrued 7,696.00 Total 2200 . Payroll Liabilities 91,149.00 2280 . Short Term Principal 117,770.00 2300 - Deposits Held 2303 . Water Deposits Held 6,400.00 Total 2300 . Deposits Held 6,400.00 2360 . UB AR Credit Balance -11,523.64 Total Other Current Liabilities 171,601.33 Total Current Liabilities 369,707.00 Long Term Liabilities Page 3 1:07 PM Avila Beach Community Services District 05/13/25 Balance Sheet Accrual Basis As of April 30, 2025 Apr 30, 25 2400 - Net Pension Liability 155,742.00 2450 - U.S. Bank Loan WWTP 2,471,552.39 2500 . Deferred Inflows of Resources 16,161.00 Total Long Term Liabilities 2,643,455.39 Total Liabilities 3,013,162.39 Equity 3900 - Retained Earnings 7,966,530.63 3999 . Prior Period Adjustment FY 23 1,649,566.61 Net Income 444,837.12 Total Equity 10,060,934.36 TOTAL LIABILITIES & EQUITY 13,074,096.75 Page 4 3 11:13 AM Avila Beach Community Services District 06/18/25 Profit & Loss Accrual Basis May 2025 May 25 Ordinary Income/Expense Income 4000 . Income Summary 4010 . Operating Revenue 81,354.62 4012 . Solid Waste Franchise Fee 3,675.09 4030 . County Taxes 243,917.80 4050 . Harbor Charges 4052 . Front Street Lighting 327.00 4053 . WWTP 0&M 30,132.00 Total 4050 - Harbor Charges 30,459.00 4600 - Interest Income 784.38 Total 4000 . Income Summary 360,190.89 Total Income 360,190.89 Gross Profit 360,190.89 Expense 5100 - Merchant Credit Card Fees 5110 . Amex 14.00 5120 . Chase Paymentech 158.39 5140 . Invoice Cloud 434.74 Total 5100 . Merchant Credit Card Fees 607.13 5200 * Payroll Expenses 5210 . Gross Wages 5211 . Regular Pay 14,771.25 5212 - Holiday Pay 803.02 5213 . Overtime Pay 248.03 5216 - Vacation Pay 821.70 Total 5210 . Gross Wages 16,644.00 5230 . Payroll Taxes 237.28 5240 . Health & Medical Exp. 5242 . Health Ins / Other 12,593.20 Total 5240 . Health & Medical Exp. 12,593.20 5250 . PERS Company Pd Expense 5255 . PERS Co Pd Shawn 891.90 5256 . PERS Co Pd Kristi 398.01 5250 . PERS Company Pd Expense - Ot... 23.97 Page 1 11:13 AM Avila Beach Community Services District 06/18/25 Profit & Loss Accrual Basis May 2025 May 25 Total 5250 . PERS Company Pd Expense 1,313.88 5280 . Payroll Administration & Misc. 117.28 Total 5200 . Payroll Expenses 30,905.64 6000 . Administrative Overheads 6102 - Accounting 9,315.00 6120 . Dues & Subscriptions -660.46 6135 . Legal 6137 . Lopez Lake ESA Litigation 7,497.00 6135 . Legal - Other 483.00 Total 6135 - Legal 7,980.00 6140 . Office Supplies & Postage 6142 - Postage & Shipping 202.39 6143 . Supplies, Office 404.02 Total 6140 . Office Supplies & Postage 606.41 6150 . Rate Assistance 743.74 6167 . Uniforms 180.00 6170 . Website 249.00 Total 6000 . Administrative Overheads 18,413.69 6500 . Operating Expenses 6503 - Chemicals 2,667.80 6504 - Admin Contract Services 1,972.50 6506 . Contract Labor GM 7,200.00 6507 . Contract Labor Civil Engineer 12,480.00 6515 * Engineering 4,789.40 6518 . Equipment Expense 754.42 6520 - Equipment Repair & Maint. 6522 . Equip. Rep. & Maint-Avila & HD 24,281.12 6524 - Eqip. Rep. & Maint. Avila Only 607.66 Total 6520 . Equipment Repair & Maint. 24,888.78 6525 . Fat Oil & Grease (FOG) 1,288.55 6528 - Gas & Oil 394.02 6535 . Insurance PIL 2,869.46 6540 - Lab Tests 580.00 6542 - Maintenance 403.00 6550 - Operating Supplies 83.61 6565 - Regulatory Compliance 2,658.35 6572 - Security 733.20 Page 2 11:13 AM Avila Beach Community Services District 06/18/25 Profit & Loss Accrual Basis May 2025 May 25 6580 . Solids Handling 2,405.50 6585 - Telephone I Internet 259.98 6590 . Utilities 7,342.63 6591 . Yard Maintenance 270.00 Total 6500 - Operating Expenses 74,041.20 Total Expense 123,967.66 Net Ordinary Income 236,223.23 Net Income 236,223.23 Page 3 11:18 AM Avila Beach Community Services District 06/18/25 Balance Sheet Accrual Basis As of May 31, 2025 May 31, 25 ASSETS Current Assets Checking/Savings 1000 . Cash Summary 1005 . Customer Cash 957.88 1008 - Petty Cash 65.72 1010 - Pacific Premier Checking 146,270.25 1015 - Five Star Bank Checking 1,246,546.70 1017 - Five Star Bank MM 215,721.39 1050 - LAIF 4,298,467.58 Total 1000 . Cash Summary 5,908,029.52 Total Checking/Savings 5,908,029.52 Accounts Receivable 1200 . *Accounts Receivable 152,643.64 Total Accounts Receivable 152,643.64 Other Current Assets 1250 - Receivables 1255 - Interest Receivable 46,340.73 1270 . Taxes Receivable 57,582.87 1280 - Water & Sewer Billings 1281 . Other 1 El Dorado Billings -520.30 1282 . Other 2 El Dorado Billings -11,523.64 1280 . Water & Sewer Billings - Other 108,207.30 Total 1280 - Water & Sewer Billings 96,163.36 Total 1250 . Receivables 200,086.96 1299 . Allowance for doubtful account -193,053.94 1400 . Prepaid Summary 1410 . Prepaid Insurance 2,869.46 Total 1400 . Prepaid Summary 2,869.46 Total Other Current Assets 9,902.48 Total Current Assets 6,070,575.64 Fixed Assets 1600 . Fixed Assets & Acc. Depr. 1620 . Fixed Assets - Sanitary 1622 * Land 60,314.10 1626 - Collection Assets 1627 . Collection Assets Cost 1,517,268.97 1628 . Collect Assets Accum Depr -886,648.15 Total 1626 . Collection Assets 630,620.82 Page 1 11:18 AM Avila Beach Community Services District 06/18/25 Balance Sheet Accrual Basis As of May 31, 2025 May 31, 25 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 6,734,122.62 1638 - Treatment Plant Accum Dep -1,740,709.80 Total 1635 . Treatment Plant 5,098,412.82 1642 - Treatment Equipment 1643 . Treatment Equip Cost 1,416,442.58 1644 . Treatment Equip Accum Depr -787,343.49 Total 1642 - Treatment Equipment 629,099.09 Total 1620 . Fixed Assets - Sanitary 6,660,116.01 1650 . Fixed Assets - Water 1652 . Equipment 1653 - Equipment Cost 21,136.28 1654 . Equipment Accum Depr -21,136.28 Total 1652 . Equipment 0.00 1656 - Distribuation Assets 1657 . Distribuation Assets Cost 1,270,571.73 1658 . Dist Assets Accum Depr -818,479.98 Total 1656 . Distribuation Assets 452,091.75 Total 1650 - Fixed Assets - Water 452,091.75 1670 . Vehicles - Admin 1671 . 2023 Ford F150 Cost 53,960.62 1672 : 2023 Ford F150 Acc Depr -6,295.96 Total 1670 - Vehicles - Admin 47,664.66 1680 . Structures - Fixed Asset 1681 . Structures GFAAG . Sani & FA 82,207.64 1682 . Gen I Fire Accum Dep -72,362.06 Total 1680 . Structures - Fixed Asset 9,845.58 Total 1600 . Fixed Assets & Acc. Depr. 7,169,718.00 Page 2 11:18 AM Avila Beach Community Services District 06/18/25 Balance Sheet Accrual Basis As of May 31, 2025 May 31, 25 Total Fixed Assets 7,169,718.00 Other Assets 1800 . Deferred Outflows of Resources 70,696.00 Total Other Assets 70,696.00 TOTAL ASSETS 13,310,989.64 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 73,654.70 2142 . FS MC SP x6340 32,817.06 2143 . FS MC KD x3018 8,175.49 2140 . Five Star MC Control x0557 - Other -112,082.04 Total 2140 . Five Star MC Control x0557 2,565.21 Total Credit Cards 2,565.21 Other Current Liabilities 2105 - Accrued Expense -32,194.03 2200 - Payroll Liabilities 2240 . Health Insurance 2241 - Employee 9,240.00 Total 2240 . Health Insurance 9,240.00 2255 . Accrued Interest FB Auditor 66,035.00 2260 . Vacation Payable 9,018.00 2262 * Sick Pay Accrued 7,696.00 Total 2200 . Payroll Liabilities 91,989.00 2280 . Short Term Principal 117,770.00 2300 - Deposits Held 2303 . Water Deposits Held 6,400.00 Total 2300 - Deposits Held 6,400.00 2360 . UB AR Credit Balance -11,523.64 Total Other Current Liabilities 172,441.33 Total Current Liabilities 368,485.40 Long Term Liabilities Page 3 11:18 AM Avila Beach Community Services District 06/18/25 Balance Sheet Accrual Basis As of May 31, 2025 May 31, 25 2400 . Net Pension Liability 155,742.00 2450 - U.S. Bank Loan WWTP 2,471,552.39 2500 . Deferred Inflows of Resources 16,161.00 Total Long Term Liabilities 2,643,455.39 Total Liabilities 3,011,940.79 Equity 3900 . Retained Earnings 7,966,530.63 3999 . Prior Period Adjustment FY 23 1,649,566.61 Net Income 682,951.61 Total Equity 10,299,048.85 TOTAL LIABILITIES & EQUITY 13,310,989.64 Page 4 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Managér 4 DATE: June 24, 2025 SUBJECT: General Manager Report Zone 3 Technical Advisory Committee (TAC) and Zone 3 Advisory Committee The Zone 3 Technical Advisory Committee last met on June 11, 2025. The agenda for the June 11, 2025 meeting is attached to this report. As ofthis writing (June 18, 2025), the Lopez reservoir is at 90% of capacity with 44,500 AF in storage. Rainfall accumulation at the lake since July 1, 2024, is 15.1 inches, which is 74% of the average for this time of year. The rainfall water year ends on June 30, 2025. The Zone 3 Advisory Committee met on May 15, 2025. The agenda packet for the May 15, 2025, Advisory Committee is provided as an attachment to this report. One of the main discussion topics for the Advisory Committee was the Status Update on the Litigation Legal Defense Costs. Through March of 2025, the County Flood Control has spent $1.658 million on contract legal support and $115,000 on County in-house staffing. None of these expenses were anticipated or included in the FY 24/25 budget. The Zone 3 Subcontractors agreed to move entire FY 2024/25 cloud seeding budget of $449,000 to help defer the un-budgeted legal litigation expenses. However, the unbudgeted litigation fees (through March 2025) are still at $1.325 million. The breakdown by Agency summary and potential billing amounts are provided in the County's report. State Water Project County Public Works staff, in coordination with the Water Resources Advisory Committee (WRAC) and the State Water Subcontractors continue to refine the State Water Project Transfer Policy. The Policy is now scheduled for consideration by the Board ofSupervisors at theJuly 15, 2025, meeting. In addition, County staff are working on a 2025 water transfer/sale (similar to what the County did in 2024) of approximately 6,500 to 7,000 AF of water to an agency in the Central Valley. The 2024 water transfer included transferring up to 13,500 AF of water at a sale rate of approximately $400/AF. The revenue from the sale of water is distributed back to the County and the Zone 3 Subcontractors based on the amount of the water each entity puts into the "transfer pool.' >9 In 2024, ABCSD, transferred 45 AF of water to the pool which netted ABCSD approximately $20,000. Staff anticipates similar results should a 2025 transfer take place. TROL AND ZONE 3 Lopez Project 2 57 San Luis Obispo County Flood Control and Water Conservation District ZONE 3 TECHNICAL ADVISORY COMMITTEE Agenda Wednesday June 11, 2025 9:00 - 11:00 am Meet at Lopez Water Treatment Plant 2845 Lopez Dr, Arroyo Grande, CA 93420 1. Announcements All 2. General Operations and Water Report Kyle Summary Notes - May Monthly Operations Report = May Lopez Storage Projections - May LWTP Emergency Shutdown Plan 3. Current Reservoir Conditions Kyle 4. Project Updates Kyle 5. Future Agenda items All 6. Tour Attachments: A. Meeting Minutes - May B. Lopez Monthly Operations Report - May C. Lopez Storage Projection D. Project Updates Next Meeting Date: July 9, 2025 ZONE 3 Lopez Project San Luis Obispo County Flood Control and Water Conservation District ZONE 3 TECHNICAL ADVISORY COMMITTEE THURSDAY, May 14, 2025, Via Microsoft Teams SUMMARY NOTES Meeting Time: 9:00am-9:35am Attendees via Microsoft Teams: Peter Brown (OCSD), Vard Ikeda (Agriculture Member ), Shane Taylor, Nicole Valentine (City of AG), Greg Ray, Jim Garing (City of Grover Beach), John Wallace, Shane Powell (ABCSD), Rosemarie Gaglione, Brandon Shea (City of Pismo), Dwayne Chisam (SMMWC), Nola Engelskirger, Kristina Borges, David Spiegel, Kyle James, Laura Holder, Jeromy Caldera, Desiree Bravo, Katie Franco, Darla Budge (District/PW Dept) 1.Announcements None 2. General Operations and Water Report April Meeting Summary Notes Presented by DSpiegel Approved April Monthly Operations Report Presented by DSpiegel Lopez Storage Projections: o April Storage Graph present by DSpiegel New weather forecasting site may be utilized for future projection charts. 3. Current Reservoir Conditions Current reservoir conditions were presented by KJames Boil Water Notice presented by Nola Engelskirger Action: All calls regarding illness were routed to public health. Nola will forward the Division of Drinking water full assessment to all agencies. 4. 2024/25 Q3 Budget Report Presented by DSpiegel 5. Unbudgeted Operations Costs Presented by DSpiegel Action: Agencies should discuss unbudgeted litigation costs with their city managers. 6. Project Updates DSpiegel provided project updates 7. Surplus Water and Water Release Schedule Presented by DSpiegel 8. Future. Agenda Items Field trip in June or July to Lopez Water Treatment Plant Next TAC Meeting: Wednesday, June 11, 2025 Adjourned: 9:35 am a a a a 6 88 - 3 5 E - - S B 3 - - 5 - S 41 3 85 - a S B - 3 I I - 3 B E I E. 3 E a - - E B e gda a a . - - 3 3 8 8 - E I 988 3 I - I E E E - - A I 8 3 3 E 3 8 8 8 a N 8 8 a - 8 E8 5 3 E - I a e I 3 8 - a 1 - E 3 8 S E 8 8 3 3 E E - E E E - E4. E - - - o 5 - 8 5 5 - E E E S 3 I à S5 355 E - 3 E S N E a S - E 3 E - 3 - 3 a HELET E E - 3 - E . 45 8 8 8 8e 8 5 9 5 E 5 E - 5 - - 4454 5 S : E - E E E E 5 a 1 8 8 3 3 8 E 3 EEE E E E 5 3 a E . 5 3 a 3 - - 5 3 I : E E 8 8 8 8 E 8 B 8 $8 o 3 BE 5 - E E - ESF 33 I 3 - 9 - a - E € 8 : j 2, 5 C 3 8 BE : a 8 88 E a E 3 E - a ! E 9 5 3 3 $ E E 3 E : *5 555475 8 3 d0 8 S I - d E E N E 5 3 a 2 e - - E f a 6 8 - I 1 5 - 3 5 5 I E 8 EEEHE 33 E de - I I I I I a B d E 3 - 1 a E E 8 2 85 a E 9 5 :1 e ! I B - 3 8 a - - - I a I E E - I 8 E E E I 3 I 3 E I - 8 - I E I I - E I a I I B5 E E EE o o o e e - I : 3 e 3 B I E 3 E E I D E 1 I E E 1 ! a I 3 N I - a I o E N 1 B8E ! ER5 8 E E 8 E I - - E I I € I I I E 5 I I I € - I I - a - I I - 1 I - E I E - 8 a E I I I I I - I E I - 4 2 L - I I I : - a - E 4 E B - I I B88 88 8 8 E - L RSE SAD A IS3HONI] TTVINIVE R 0 6 E A 9 co D 4 2 9Z02/0E/1T 9Z02/TE/8 9Z02/TE/s 9z02/82/z SZOZ/0E/IT SZOZ/TE/8 o SZOZ/TE/S - SZOZ/8Z/Z VZOZ/0E/IT VzOZ/TE/8 -4 VZOZ/LE/S 0 S VZOZ/6Z/z 6 a EZOZ/0E/IT EZOZ/TE/8 EZOZ/TE/S a 7 EZOZ/82/z a 1 2ZOZ/0E/LT 3 8 [vl ALIDVdVO HIOA83S38 W 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: June 11, 2024 SUBJECT: Zone 3 Projects Update Project Updates: Project Updates: Steelhead Passage Feasibility Assessment of Lopez Dam o BOS approval of contract at. April 8 BOS meeting Begin assessment of Lopez Dam Budget -$250k Lopez Dam Flow Sensor Installed flow sensor for measure pulse flows out of 42inch emergency valve Calibration in process Budget -$20,000 Membrane Module Replacement o Two racks ordered Installation scheduled for December gth Budget -$600,000 Spillway Assessment and Investigation (No Change) o Received Geotechnical Data Report from GEI Remainder of project - minimum of $300,000 Geotechnical Testing & Seismic Alternatives Study of Terminal Reservoir Dam (No Change) OL AND ZONE 3 Lopez Project San Luis Obispo County Flood Control and Water Conservation District With DSOD for Review Geotechnical Engineering Report Complete Budget -$500,000 Cathodic Protection Repair Project (No Change) Working on transient monitoring station plans for DWR/State water line crossing System working well Budget -$449,933 Fire Flow Tank Replacement Reviewing grant opportunities -$500k in Zone 3 Funds Budget -$1,400,000 ROL AND ZONE 3 ADVISORY COMMITTEE San Luis Obispo County Flood Control and Water Conservation District AGENDA Thursday, May 15, 2025,1 10:30 A.M. City of Pismo Beach Council Chambers 760 Mattie Rd., Pismo Beach, CA 93449 I. CALL TO ORDER AND ROLL CALL II. PUBLIC COMMENT This is also an opportunity for members of the public to address the Committee on items that are not on the agenda. III. MEETING MINUTES A. March 20, 2025, Meeting = Attachment 1 IV. OPERATIONS REPORT A. Water Plant Operations, Reservoir Storage, Downstream Releases - Verbal Update B. Projected Reservoir Levels = Attachment 2 C. March and April Monthly Operations Report - Attachment 3 D. Projects Updates - Attachment 4 E. Fire Protection - Verbal Update F. Unbudgeted Operations Costs - Attachment 5 V. LOPEZ RECREATION REPORT VI. INFORMATIONAL ITEMS A. Present 3rd Quarter FY 2024/25 Budget Status- Attachment 6 VII. ACTION ITEMS (No Subsequent Board of Supervisors Action Required) A. Declare Surplus Water = Attachment 7 VII. ACTION ITEMS (Board of Supervisors Action is Subsequently Required) IX. FUTURE AGENDA ITEMS X. COMMITTEE MEMBER COMMENTS Next Regular Meeting is Scheduled for July 17, 2025, at 10:30 AM at Oceano Community Services District Agendas accessible online at www.slocounty ca.gov/pwizone3 SAN LUIS OBISPO COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 3 ADVISORY COMMITTEE MEETING MINUTES THURSDAY MARCH 20, 2025 GROVER BEACH CITY COUNCIL CHAMBERS I. CALL TO ORDER AND ROLL CALL Action: The Zone 3 Advisory Committee meeting was called to order at 10:30 AM by Agriculture Member Brian Talley. Action: Roll call conducted by David Spiegel. A quorum was confirmed. Members in Attendance: Ron Reilly, Member at Large Delegate Brian Talley, Agriculture Member Marcia Guthrie, City of Pismo Beach Brad Hagemann, CSA 12 Aileen Loe, City of Arroyo Grande II. PUBLIC COMMENT Action: No public comments were made. III. APPROVAL OF MEETING MINUTES Action: Motion to approve the minutes of the January 16, 2025, meeting. Motioned by Reilly, seconded by Guthrie. Action: Motion passed by roll call vote. IV. OPERATIONS REPORT A. Water Plant Operations, Reservoir Storage, Downstream Releases 0 Action: Report provided by Spiegel. B. Projected Reservoir Levels Action: Report provided by Spiegel, with a staff report to follow. C.. January and February Monthly Operations Report Action: Report provided by Spiegel. Water exchanges as of February 1 are included in the report, and future reports will feature a separate water exchange table. D. Project Updates o Action: Report provided by Spiegel. E. 2nd Quarter Budget Status Report Action: Report provided by Spiegel. V. ACTION ITEMS (No Subsequent Board of Supervisors Action Required) Action: None. VI. ACTION ITEMS (Board of Supervisors Action Required) 1. Fiscal Year 2025/26 Budget Endorsement Action: Motion to endorse the fiscal year 2025/26 budget, motioned by Guthrie, seconded by Loe. Action: Motion passed by roll call vote. VII. FUTURE AGENDA ITEMS Action: Fire protection, bond discussion, and parks update. VIII. COMMITTEE MEMBER COMMENTS Action: Talley shared concerns about the lawsuit and the Preliminary Injunction affecting the operation of the Lopez Dam. He noted that rate increases are likely as a result. Action: Hagemann reported receiving an invitation to attend the Creeklands event on April 3, 2025, from 4:00 PM to 5:30 PM at the AG Stream Gage sign. Loe inquired if the event was open to the public, and Spiegel confirmed it is for the Zone 3 Committee. IX. ADJOURNMENT Action: The meeting was adjourned at 10:58 AM by Talley. Next Meeting: Scheduled for May 15, 2025, at the City of Pismo Beach Council Chambers. Respectfully Submitted, Laura Holder County of San Luis Obispo Public Works Department [SJHONI] 77VINIV8 8 0 6 5 E 9 0o o 4 2 9Z0Z/0E/IT 9Z0Z/TE/8 9ZOZ/TE/S 9Z0Z/8Z/Z SZOZ/OE/LT SZOZ/TE/8 SZOZ/TE/S Szoz/8Z/Z VZOZ/0E/TT VZOZ/TE/8 8. 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BEAE ROL AND ZONE 3 Lopez Project San Luis Obispo County Flood Control and Water Conservation District TO: Zone 3 Advisory Committee FROM: David Spiegel, PE, Utilities Engineer DATE: May 14, 2024 SUBJECT: Zone 3 Projects Update Project Updates: Steelhead Passage Feasibility Assessment of Lopez Dam BOS approval of contract at April 8 BOS meeting , Begin assessment of Lopez Dam Budget -$250k Lopez Dam Flow Sensor Delivering to WTP for installation at the dam Purchase and installation of a flow sensor for measure pulse flows out of 42inch emergency valve Budget -$20,000 Membrane Module Replacement Developing contract for final 2 racks Budget -$600,000 Spillway Assessment and Investigation (No Change) Received Geotechnical Data Report from GEI Remainder of project a 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) Working on transient monitoring station plans for DWR/State water line crossing System working well Budget -$449,933 Fire Flow Tank Replacement Reviewing grant opportunities -$500k in Zone 3 Funds o Budget -$1,400,000 ZONE 3 Lopez Project y San Luis Obispo County Flood Control and' Water Conservation District Completed Projects DAF building repair and lifeline beam replacement ZONE 3 ADVISORY COMMITTEE San Luis Obispo County Flood Control and Water Conservation District TO: Zone 3 Technical Advisory Committee, Zone 3 Advisory Committee FROM: Katie Franco, Finance Division DATE: May 8, 2025 SUBJECT: Status Update on Litigation - Legal Defense Costs As the Zone 3 Agencies are aware, the County has appealed a court decision that requires increased water releases from Lopez Lake that are projected to have adverse effects on water supply. The cost and associated budget for hiring legal defense was not planned and has proven to be costly in a short amount of time. The Technical Advisory Committee approved the use of $448,995 budgeted for cloud seeding efforts to be used towards legal costs. However, the total costs through April 30th are $1,773,541 resulting in a net unbudgeted impact of $1,324,546. Specific costs are detailed below. Nossaman. LLPI Invoices Invoice Date Invoice Number TotalA Amount 7/26/2024 565524 $ 24,149.61 8/23/2024 566562 $ 100,733.04 9/30/2024 567793 $ 242,053.71 10/17/2024 568985 $ 135,288.31 11/15/2024 570367 $ 189,572.25 12/12/2024 571559 $ 199,699.00 2/6/2025 573234 $ 219,872.46 2/24/2025 574176 $ 299,804.72 3/13/2025 574959 $ 246,773.60 Total Invoices: $ 1,657,946.71 Total PWS Staff! Labor: $ 115,594.02 Totall Litigation Costs through April 2025: $ 1,773,540.73 Breakdown! by Agency Totall Litigation Costs throughApril2 2025: $ 1,773,540.73 Cloud! Seeding budget movedt to Litigation: $ (448,995.00) Unbudgeted Total of Litigation Fees: $ 1,324,545.73 Agency Contract% Potential BillingAmount Arroyo Grande 50.55% $ 669,557.87 Grover Beach 17.66% $ 233,914.78 Pismo Beach 17.66% $ 233,914.78 CSA12 7.4496 $ 98,546.20 Oceano CSD 6.699 $ 88,612.11 100.00% $ 1,324,545.73 This budget overage will be billed out to agencies in the true-up for Fiscal Year 2024-25 net of available cost savings in other budgeted efforts. Staff will be available to answer specific questions at the May 14, 2025 Zone 3 Technical Advisory Committee meeting and in person at the May 15, 2025 Advisory Committee meeting. ND ZONE 3 Lopez Project San Luis Obispo County Flood Control and Water Conservation District May 15, 2025 MEMORANDUM TO: Flood Control Zone 3 Advisory Committee FROM: Kristina Borges, Accountant SUBJECT: Flood Control Zone 3, Third Quarter Budget Status, Fiscal Year 2024-25 Recommendation The item to be received and filed. Summary Attached please find a comparison of the budget to actual expenses for the third quarter of fiscal year 2024- 25. The $7.7M budget is broken into three categories: Routine Operations & Maintenance, Non-Routine Operations & Maintenance, and Capital Outlay. At the end of the third quarter, 86% of the total annual budget was expended. Total Expenses Balance % of Budget Budget through Q3 Available Expended 7,743,453 6,653,309 1,090,144 86% Routine O&M: This category has a budget of$5.9M dollars. At the end of the third quarter, 76% of the annual budget has been expended, resulting in approximately $1.45M being available for the remainder ofthe year. Expenses in this category are slightly above target with budgeted levels. Total Expenses Balance % of Budget Budget through Q3 Available Expended 5,903,051 4,457,435 1,445,616 76% Non-Routine 0&M: This category has a budget of $975,083. At the end oft the third quarter, 208% of the annual budget had been expended, resulting in an available balance of ($1,052,552) for the remainder of the year. Most of the items in this category have had the budget carried forward from the prior year to continue working on them. Expenses in this category are above target as a result ofthe litigation expenses at $1.75M, which is 86% ofthe expenses in this category. Total Expenses Balance % of Budget Budget through Q3 Available Expended 975,083 2,027,635 (1,052,552) 208% WD ZONE 3Lopez Project 7 San Luis Obispo County Flood Control and Water Conservation District Capital Outlay: This category has a budget of $865,319. At the end of the third quarter, expenses were 19% oft the annual budget, resulting in $697,080 available for the remainder of the year. The unspent budget from the prior year has been carried forward for several projects and accounts for the majority of this category's budget. Total Expenses Balance % of Budget Budget through Q3 Available Expended 865,319 168,239 697,080 19% Other Agency) Involvement/mpact The agencies involved: City of Arroyo Grande, City of Grover Beach, City of Pismo Beach, Oceano Community Services District, and County Service Area 12. Subcontractors of CSA 12 include Port San Luis Harbor District and Avila Beach Community Services District. Financial Consideration The City of AG still needs to pay the true-up bill for Fiscal Year 2023-24. All other agencies are current on their payments. Zone 3 Budget Status 3rd Quarter FY24/25 Routine Operation and Maintenance 6,250,000 6,000,000 5,750,000 5,500,000 5,250,000 5,000,000 4,750,000 4,500,000 4,250,000 4,000,000 3,750,000 3,500,000 3,250,000 Budgeted Actual 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 0 1 2 3 4 Quarter Total Expa as Total Balance O8ME Routine Category Total Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total 5ofB Budget Avail Labor Hours 23,800 5,559 6,474 6,191 18,223 77% Chemicais - Water Treatment Plant 544,369 $ 160,700 $ 167,972 $ 128,628 $ 457,300 84% 87,059 Water Qualty Testing Treatment Plant 185,882 12,900 13,319.00 12,421 38,640 0% $ 147,242 Electricity. Water Treatment Plant 355,277 114,494 88,499.23 51,711.58 254,705 72% $ 100,572 AIC Other Costs Water Treatment Plant 2,175,368 446,932 $ 606,858 506,516 1,560,306 72% $ 615,062 Terminal 143,484 56,456 48,029 66,295 170,780 119% S (27,296) Main Dam 223,230 161,744 147,786 58,768 368,298 1655 (145,068) Lopezy Water Rights HCP 435,128 $ 13,973 $ 24,309 $ 11,466 $ 49,748 115 $ 385,380 Other 1,840,314 387,321 769,877 400,460 1,557,658 855 282,656 Expenses 1,354,520 1,866,650 1,236,265 4,457,435 76% 1,445,616 Budget 5,903,051 1,475,763 1,475,763 1,475,763 1,475,763 5,903,051 Variance (over)under 121,243 (390,887) 239,498 1,475,763 1,445,616 % Variance 8% -261 16% 1005 Zone 3 Budget Status 3rd Quarter FY24/25 Non-Routine Operation and Maintenance 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 Budgeted Actual 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 a . 1 2 3 4 Quarter Total Exp Total Total as x of Balance OaM Non Routine Categors Budget Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Budget Avail Cathodic Protection Maint $ $ Ox Contribution to ISFINeV Equip 77,873 $ 1,271 $ 1,271 2% 76,602 Geotech Test/Seismic Alt Study Terminal Dam 31,080 $ 24,449 (0) 24.449 79% 6.631 Safety Upgrades to VTP 65,000 6,070 6,070 9% 58.930 Cloud Seeding Program 1,500 $ 1.565 521 2,086 139% (586) Spillvay Phgsical Investigation 350,185 $ 8,707 157,245 74,564 240,516 69% 109,669 Contr to FC General AG Creek Subbasin $ 0x Replace Stem Vall Sludge Bed: 2 450 $ 0% 450 Lopez HCP Litigation 448,995 $ 903,938 849,305 1,753,244 390% (1.304,243) Expenses 34.721 1,062,975 929,939 2,027,635 208% (1.052,552) Budget 975,083 243,771 243.771 243.771 243.771 975,083 Variance (overjlunder 209,050 (819,204) (686,168) 243,771 (1.052,552) x Variance 86x -336% -281x 100% Zone 3 Budget Status 3rd Quarter FY24/25 Capital Outlay 1,000,000 900,000 800,000 700,000 600,000 500,000 Budgeted Actual 400,000 300,000 200,000 100,000 a 1 2 3 4 Quarter Capitaic Oullay Projects Total Budget 1stQuerter 2nd Quarter Srd Quarter 4th Quarter Total soiBudget Avail improved Boat Access atl Term Res $ $ $ $ $ $ 0% $ Fireflow Tank Repair 464,715 1,307 0 1,307 0% 463,408 Cathodic Protection Units 1-3 22,784 3,116 611 3,726 16% 19,058 Mower 148,000 147,469 147,469 1004 531 Flowmeter 15,618 15,618 #DIV/O! (15,618) TBD- REPLACE CARBONF FEED SYSTEM 50,000 0% 50,000 TBD- MEMBRANE RACK VALVE INSTALLATION 50,000 0% 50,000 TBD- TERMINAL DAME PEIZOMETERI REPLACEMENT 15,281 05 15,281 TBD. MEMBRANE RACK PIPE REPLACEMENTS 50,000 0% 50,000 upgrade EQF Pump 37,623 0% 37,623 WTP-Membrancel Filter Modules (2 Racks) 26,916 118 118 0% 26,798 Expenses 1,307 3,116 163,816 168,239 19% 697,080 Budget 865,319 216,330 216,330 216,330 216,330 885,319 Variance (overjunder 215,023 213,214 52,514 216,330 697,080 % Variance 995 99% 24% 1005 2024-2025 End of Water Year Stored Project Water [AF] Entitlement 4,530.00 Delivered Entitlement 3,451.56 Undelivered Entitlement 1,078.44 Stored Project Water 1,078.44 2024-2025 Surplus Water Generated (April 1 - March 30) [AF] Max Downstream Releases 4,200.00 Total Downstream Releases 4,055.23 Downstream Releases During Spill 785.63 Downstream Releases No Spill 3,269.60 Surplus Water Generated 930.40 2024-2025 END OF WATER YEAR STORED PW AND SURPLUS WATER REPORT AVAILABLE ENTITLEMENT USED ENTITLEMENT STORED PW SURPLUS SURPLUS CONTRACTOR [AF] ENTITLEMENT [%] [AF] WATER [AF] WATER COST Arroyo Grande 2290 1600.31 51% 689.69 470.33 $ 55,146.74 Oceano CSD 303 303 7% 0.00 62.23 $ 7,296.71 Grover Beach 800 621.34 18% 178.66 164.31 $ 19,265.24 Pismo Beach 892 860.4 20% 31.60 183.20 $ 21,480.74 CSA: 12 245 66.52 5% 178.48 50.32 $ 5,899.98 San Miguelito N/A N/AI N/A N/A N/A N/A TOTAL 4530 3451.57 100.0% 1078.43 930.40 $ 109,089.40 AVILA BEACH COMMUNITY SERVICES DISTRICT ESTABLISHED FEB.1997 SUBJECT: June 2025 Operations and Maintenance Report Compliance There were no compliance issues for the month of May. The May 2025 Self-Monitoring Reports and associated data tables & graphs are attached. Wastewater Treatment Plant Due to high amperage and flow issues, staff! had to pull the influent lift station pumps a second time in a month to remove rags and debris from the impellers. We typically anticipate pulling and cleaning the pumps every four months or SO. The primary clarifier is currently offline, and is being inspected, sandblasted and the launderer recoated. As discussed at the May Board meeting, the coating on the effluent launder was failing and needed to be recoated. The new coating is an epoxy based, industrial coating that should last 10-15 years. the concrete under the coating appears to bei in good shape, indicating that the District acted in an appropriate amount of time after the failure was discovered. The sandblasting and coating prep work has taken al bit longer than anticipated. Staff anticipates the primary clarifier will be back in service by Wednesday June 24th. Staffand al hired contractor mechanic worked together to replace the seals and bearings in a failed pump at the plant. Staff continues to work with Cloacina to address the remaining punch list items for the MBR Warranty. Wastewater Collection System Staff received 2 calls for water on the street near a manhole. No sewage overflow was observed. It appears to have been moisture from groundwater nearthe First Street parking lot. The second call was for water on the ground at 141 San Rafael Street. There is no District infrastructure in the area where the water was observed. The water dried quickly indicating there is no issue and could have been a water truck or something ofthat nature spilling a little bit on the ground. Water System Staffincreased the water distribution routine coliform monitoring since the Boil Water Notice. Noi issues have been detected. The Lopez Drinking Water Treatment Plant did a three week "burn" using free chlorine in the water distribution system during the month of May. The system has converted back to chloramines and has gone back to standard operating procedures. Staff met with Grace Environmental to discuss logistics of their assistance with the meter installation project. 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 oft following month Facility Month: MAY: 2025 Annual report due, January 30 Effluent and Influent Monitoring Daily Flow (MGD) Effluent Monitoring Weekly Weekly Weekly Weekly Monthly Blweekly Biweekly Daily Date Effluent Effluent Influent Influent Effluent Date Total Max Avg Total Fecal Chlorine BOD TSS BOD TSS Oil & Grease (gpm) (gpm) Collform Coliform Residual (24H HC) (24 HC) (24 HC) (24 HC) (Grab) 1 0.037433 74 26 23 <1.8 0.00 5/1/25 11 14 230 90 2 0.048585 97 34 0.00 5/8/25 <4.0 <5.0 200 180 <5.0 3 0.056621 95 39 0.00 5/15/25 11 <5.0 270 210 4 0.055032 94 38 0.00 5/22/25 7.2 <5.0 270 130 5 0.047295 57 33 1.8 <1.8 0.00 5/29/25 6 0.035686 79 25 0.00 Min <4.0 <5.0 200 90 <5.0 7 0.042397 55 29 0.00 Mean 7.3 4.7 242.5 152.5 <5.0 8 0.045945 50 32 11 <1.8 0.00 Max 11 14 270 210 <5.0 9 0.048999 103 34 0.00 BOD Removal: 97.0% TSS Removal: 96.9% 10 0.066147 109 46 0.00 Effluent Monitoring 11 0.062067 102 43 0.00 Weekly Weekly Weekly Weekly Date Set. Solids Turbidity pH Temp °F 12 0.048694 115 34 4.0 <1.8 0.00 (Grab) (Grab) (Grab)* (Grab) 13 0.046123 115 32 0.00 5/1/25 <0.1 3.2 7.45 66.8 14 0.041314 91 29 0.00 5/8/25 <0.1 2,0 7.13 66.9 15 0.043523 73 30 2.0 <1.8 0.00 5/15/25 <0.1 1.5 7.36 69.4 16 0.052098 91 36 0.00 5/22/25 <0.1 1.4 7.29 70.3 17 0.059267 113 41 0.00 5/29/25 7.16 18 0.062009 109 43 0.00 Min <0.1 1.4 7.13 66.8 19 0.055386 106 38 17 <1.8 0.00 Mean <0.1 2.0 7.28 68.4 20 0.036537 73 25 0.00 Max <0.1 3.2 7.45 70.3 76 'Effluent pHs samples were collected on 5/2, 5/9, 5/16, 5/23, and 5/30. 21 0.046395 32 0.00 22 0.045892 75 32 2.0 <1.8 0.00 Influent Brine Received Sludge Removal 23 0.058224 89 40 0,00 Date Volume (Gallons) Date Gallons 24 0.070970 98 49 0.00 NIA NIA 5/5/25 4,500 25 0.083691 126 58 0.00 26 0.073538 122 51 0.00 27 0.072696 120 50 <1.8 <1.8 0.10 Effluent Limits 28 0.064227 92 45 0.00 Parameter Units Monthly Avg Weekly Avg Daily Max 29 0.047361 107 33 0.00 BOD mg/L 40 60 90 30 0.061657 99 43 0.00 Suspended Solids mg/L 40 60 90 31 0.074287 120 52 0.00 Oila and Grease mg/L 25 40 75 Min 0.035686 50 25 <1.8 <1.8 0.00 Turbidity NTU 75 100 225 Mean 0.054519 94.4 37.8 7.6 <1.8 0.00 7 Sample Median: 23 MPN/ Max 0.083691 126 58 23 <1.8 0.10 Total Coliform 100 mL More than once in 30 days: 240 Total 1.690096 Effluent daily (dry weather) flow NTE 0.21 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 ofp perjury that the foregoing. is true and accurate and that Settleable Solids mLL 1.0 1.5 3.0 the sampling procedure and analysis used are as specified ini the Waste : *** Discharge Order for this facility. BODITSS Removal % 275% SIGNATURE: DATE: PRINTED NAME: TITLE: 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: MAY 2025 Annual report due January 30 Process Sampling MBR MBR Parameter Influent Aeration (mg/L) (24HC) (grab) Date 5/8/25 5/8/25 BOD 120 (mg/L) Total Suspended Solids 71 8,500 (mg/L) Volatile Suspended Solids 7,400 (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. AVa aEd SNOT7VS - NOW dEd SNOTTVS 8 1/6w 0 ? 8 6 00 6 & 0 5 7/6w V N 077VS AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann and Shannon D. Boyd, General Counsel DATE: June 24, 2025 ITEM 9A: General Manager Contract Recommendation: Receive Staff Report and take Board action Background and Discussion: Brad Hagemann of Hagemann & Associates has served as the District's contract General Manager since May 2015. The Professional Services Contract with Hagemann and Associates was last updated by the Board in June 2024, for an eighteen-month term starting July 1, 2024 until December 31, 2025. The Contract states that the General Manager's contract shall be reviewed annually by no later than June of each year. Based on the foregoing, it is now time to review the contract and consider approving an updated contract. District Legal Counsel has prepared an updated contract for the Board's review and consideration. Proposed changes are shown in strike-out/anderline" format. Also included is a clean draft of the proposed General Manager's contract as an attachment to this Staff Report for the Board's review and consideration. AVILA BEACH COMMUNITY SERVICES DISTRICT GENERAL MANAGER 20242025 PROFESSIONAL SERVICES CONTRACT Attachment: Exhibit "A" General Manager Job Description THIS CONTRACT is made and entered into by and between the AVILA BEACH COMMUNITY SERVICES DISTRICT (herein referred to as "District"), and HAGEMANN & ASSOCIATES (herein referred to as "General Manager", or BRADLEY HAGEMANN"), with reference to the following recitals: RECITALS A. District is a Community Services District organized and operating pursuant to 61000 et seq., of the California Government Code. B. District desires to enter into a contract relationship with BRADLEY HAGEMANN, Principal and Owner of Hagemann & Associates as General Manager of the District. C. BRADLEY HAGEMANN desires to enter into a Contract relationship with the District as General Manager. D. The purpose of this Contract is to define the contract relationship of BRADLEY HAGEMANN and the District during the terms of this Contract. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: SECTION 1 - DUTIES A. District hereby agrees to retain HAGEMANN & ASSOCIATES as District General Manager. B. The duties of the General Manager are generally described in Government Code Section 61051 as follows: The General Manager shall be responsible for all of the following: (a) The implementation of the policies established by the board of directors for the operation of the district. (b) The appointment, supervision, discipline, and dismissal of the district's employees, consistent with the employee relations system established by the board of directors. 1 (c) The supervision of the district's facilities and services. (d) The supervision of the district's finances. C. BRADLEY HAGEMANN agrees to perform the functions and duties specified in Government Code Section 61051 and the duties described in the District's General Manager job description attached hereto as Exhibit "A" and incorporated herein by this reference, and to perform other legally permissible and proper duties and functions as the District Board of Directors shall from time to time assign without additional compensation. D. Both parties acknowledge that specific duties of the position may vary from time to time. SECTION 2 - TERM Subject to the approval by the Board of Directors, this Contract shall take effect on July 1, 2024-2025 ("Effective Date"), and shall remain in effect until December 31, 2025-2026 or until terminated as provided in the following provisions: A. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of District to terminate the services of General Manager at any time, subject only to the conditions set forth in SECTION 3 of this contract. B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of General Manager to resign at any time from his position with the District, subject only to the provisions set forth in Section 3 of this Contract. SECTION 3 - TERMINATION AND SEVERANCE PAY A. General Manager understands and expressly agrees that he has no constitutionally protected property right or interest in this contract as General Manager. B. The General Manager shall serve at the will and pleasure of the District Board of Directors, and the contract may be terminated without cause. District shall provide General Manager thirty (30) calendar days written notice prior to terminating this contract, unless the parties agree otherwise. C. In the event General Manager voluntarily cancels this contract with District, General Manager shall give District ninety (90) calendar days written notice in advance, unless the parties otherwise agree. In the event General Manager voluntarily cancels this contract with District, the General Manager shall be entitled only to all hours billed, but not paid as of the date of contract cancellation. 2 SECTION 4 - - BILLING RATE A. District agrees to pay General Manager an hourly rate of $160.005170.00. B. The District Board of Directors may increase the hourly rate of this Contract without amending this Contract. SECTION 5 - CONTRACT REVIEW A. The General Manager and District shall participate in a contract review annually by no later than the end of June of each succeeding year. B. The Board of Directors reserves the right, in its discretion, to review and/or cancel the General Manager's contract at any time. SECTION 6 - HOURS OF WORK The General Manager is expected to engage in those hours of work that are necessary to fulfill the obligations of the General Manager's position for 20 hours per week and a maximum total of 960 hours for the year. SECTION 7 = AUTOMOBILE A. General Manager shall be entitled to reimbursement for automobile expenses at the prevailing IRS per diem mileage rate for expenses incurred in performing services for the benefit of the District outside of the District boundary excluding travel to and from the District office. SECTION 8 - AUTOMOBILE AND PROFESSIONAL LIABILITY INSURANCE A. General Manager shall procure and maintain automobile insurance coverage, on an "occurrence basis", with companies authorized to do business in the State of California, with coverage of no less than three-nundred thousand dollars ($300,000) per accident. B. Prior to commencing work under this Contract, General Manager shall provide District with a Certificates of insurance evidencing compliance with the foregoing requirements, accompanied by copies of the required endorsements. Certificates of Insurance shall specify that the insurer shall give District thirty (30) days advance written notice by the insurer prior to cancellation of the policy except ten (10) days for nonpayment of premium. C. The automobile insurance coverage required hereunder shall be kept in full force and effect for the term of this Contract. Certificates of Insurance evidencing renewal of the required coverage shall be provided within ten (10) days 3 of the expiration of any policy at any time during the period such policy is required to be maintained by General Manager hereunder. Any failure to comply with this requirement shall constitute a material breach of this Contract. D. The General Manager shall maintain General Liability Insurance at: $1,000,000 per claim and $1,000,000 Aggregate. SECTION 9 - NOTICES Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows: 1. AVILA BEACH COMMUNITY SERVICES DISTRICT P.O. Box 309 Avila Beach, CA 93424 Attn: President of the Board of Directors 2. BRADLEY HAGEMANN 9372 Carmel Road Atascadero, CA 93422 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the third day following the date of deposit of such written notice in the course oftransmission in the United States Postal Service, with postage fully prepaid. Either Party may change addresses for Notices by providing the other Party with a new address in writing with reference to this Section of the Contract. SECTION 10 - INDEMNIFICATION A. In accordance with and to the extent provided by California's Tort Claims Act Government Code Section 825 et seq. and Government Code Sections 995-996.5), the District shall defend and indemnify the General Manager against any and for all losses sustained by the General Manager in direct consequences of the discharge of the General Manager's duties on the District's behalf for the period of the General Manager's employment. B. Nothing in this Contract shall expand the District's defense and indemnification obligations beyond those provided in the Government Code Tort Claims Act (Government Code Section 825, et seq.) and Government Code Sections 995-996.5. SECTION 11 - GENERAL PROVISIONS A. General Manager shall comply with all local and state 4 requirements regarding conflicts of interest and shall avoid personal involvement in situations which are inconsistent or incompatible with a position of General Manager or give rise to the appearance of impropriety. B. The terms of this Contract are intended by the parties as a final expression of their Contract and may not be contradicted by evidence of any prior Contract or contemporaneous oral Contract. The parties further intend that this Contract constitutes the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Contract. Any amendments to this Contract must be in writing and executed by both parties. C. In the event of General Manager's death, General Manager's heirs, legatees, devisees, executors or legal representatives shall be entitled to (a) all billable hours earned, but not paid. General Manager and his heirs, legatees, devisees, executors or legal representatives shall not be entitled to any other compensation, including, without limitation, any severançe compensation. D. If any term, covenant, condition or provision of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be effected, impaired or invalidated thereby. E. This Contract shall be governed by the laws of the State of California. The parties agree that in the event any legal action is taken to enforce/interpret any provisions of this Contract, said action shall be filed in the court of proper jurisdiction within the County of San Luis Obispo. F. The parties acknowledge that they understand the significance and consequences of this Contract. The parties also acknowledge that they have been given full opportunity to review and negotiate this Contract and execute it only after full reflection and analysis, and that they have had an opportunity to review this document and its application and meaning with their respective attorneys and advisors. This Contract shall not be interpreted against the party who prepared the initial draft, because all parties participated in the drafting of this Contract by having ample opportunity to review and submit suggested changes or corrections for incorporation into the final version of this Contract. G. This Contract shall be binding upon and shall inure to the benefit of the prospective heirs, executors, administrators, successors and assigns of the parties, provided however that the District General Manager may not assign obligations hereunder. H. General Manager shall not assign this Contract in whole or in part. I. The above Recitals are true and correct and incorporated herein by 5 reference. J. This Contract may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument, and shall be governed by the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have executed this Contract on the below identified dates. DATE: y 20254 GENERAL MANAGER: DISTRICT: BRADLEY HAGEMANN PETER KELLEY Approved as to form: SHANNON D. BOYD, District Legal Counsel 6 AVILA BEACH COMMUNITY SERVICES DISTRICT GENERAL MANAGER 2025 PROFESSIONAL SERVICES CONTRACT Attachment: Exhibit "A" - General Manager Job Description THIS CONTRACT is made and entered into by and between the AVILA BEACH COMMUNITY SERVICES DISTRICT (herein referred to as "District"), and HAGEMANN & ASSOCIATES (herein referred to as "General Manager", or "BRADLEY HAGEMANN"), with reference to the following recitals: RECITALS A. District is a Community Services District organized and operating pursuant to 61000 et seq., of the California Government Code. B. District desires to enter into a contract relationship with BRADLEY HAGEMANN, Principal and Owner of Hagemann & Associates as General Manager of the District. C. BRADLEY HAGEMANN desires to enter into a Contract relationship with the District as General Manager. D. The purpose of this Contract is to define the contract relationship of BRADLEY HAGEMANN and the District during the terms of this Contract. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: SECTION 1 - DUTIES A. District hereby agrees to retain HAGEMANN & ASSOCIATES as District General Manager. B. The duties of the General Manager are generally described in Government Code Section 61051 as follows: The General Manager shall be responsible for all of the following: (a) The implementation of the policies established by the board of directors for the operation of the district. (b) The appointment, supervision, discipline, and dismissal of the district's employees, consistent with the employee relations system established by the board of directors. 1 (c) The supervision of the district's facilities and services. (d) The supervision of the district's finances. C. BRADLEY HAGEMANN agrees to perform the functions and duties specified in Government Code Section 61051 and the duties described in the District's General Manager job description attached hereto as Exhibit "A" and incorporated herein by this reference, and to perform other legally permissible and proper duties and functions as the District Board of Directors shall from time to time assign without additional compensation. D. Both parties acknowledge that specific duties of the position may vary from time to time. SECTION 2 - TERM Subject to the approval by the Board of Directors, this Contract shall take effect on July 1, 2025 ("Effective Date"), and shall remain in effect until December 31, 2026 or until terminated as provided in the following provisions: A. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of District to terminate the services of General Manager at any time, subject only to the conditions set forth in SECTION 3 of this contract. B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of General Manager to resign at any time from his position with the District, subject only to the provisions set forth in Section 3 of this Contract. SECTION 3 = - TERMINATION AND SEVERANCE PAY A. General Manager understands and expressly agrees that he has no constitutionally protected property right or interest in this contract as General Manager. B. The General Manager shall serve at the will and pleasure of the District Board of Directors, and the contract may be terminated without cause. District shall provide General Manager thirty (30) calendar days written notice prior to terminating this contract, unless the parties agree otherwise. C. In the event General Manager voluntarily cancels this contract with District, General Manager shall give District ninety (90) calendar days written notice in advance, unless the parties otherwise agree. In the event General Manager voluntarily cancels this contract with District, the General Manager shall be entitled only to all hours billed, but not paid as of the date of contract cancellation. SECTION 4 - - BILLING RATE 2 A. District agrees to pay General Manager an hourly rate of $170.00. B. The District Board of Directors may increase the hourly rate of this Contract without amending this Contract. SECTION 5 - - CONTRACT REVIEW A. The General Manager and District shall participate in a contract review annually by no later than the end of June of each succeeding year. B. The Board of Directors reserves the right, in its discretion, to review and/or cancel the General Manager's contract at any time. SECTION 6 - HOURS OF WORK The General Manager is expected to engage in those hours of work that are necessary to fulfill the obligations of the General Manager's position for 20 hours per week and a maximum total of 960 hours for the year. SECTION 7 = AUTOMOBILE A. General Manager shall be entitled to reimbursement for automobile expenses at the prevailing IRS per diem mileage rate for expenses incurred in performing services for the benefit of the District outside of the District boundary excluding travel to and from the District office. SECTION 8 - - AUTOMOBILE AND PROFESSIONAL LIABILITY INSURANCE A. General Manager shall procure and maintain automobile insurance coverage, on an "occurrence basis", with companies authorized to do business in the State of California, with coverage of no less than three-hundred thousand dollars ($300,000) per accident. B. Prior to commencing work under this Contract, General Manager shall provide District with a Certificates of insurance evidencing compliance with the foregoing requirements, accompanied by copies of the required endorsements. Certificates of Insurance shall specify that the insurer shall give District thirty (30) days advance written notice by the insurer prior to cancellation of the policy except ten (10) days for nonpayment of premium. C. The automobile insurance coverage required hereunder shall be kept in full force and effect for the term of this Contract. Certificates of Insurance evidencing renewal of the required coverage shall be provided within ten (10) days of the expiration of any policy at any time during the period such policy is required 3 to be maintained by General Manager hereunder. Any failure to comply with this requirement shall constitute a material breach of this Contract. D. The General Manager shall maintain General Liability Insurance at: $1,000,000 per claim and $1,000,000 Aggregate. SECTION 9 = - NOTICES Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows: 1. AVILA BEACH COMMUNITY SERVICES DISTRICT P.O. Box 309 Avila Beach, CA 93424 Attn: President of the Board of Directors 2. BRADLEY HAGEMANN 9372 Carmel Road Atascadero, CA 93422 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the third day following the date of deposit of such written notice in the course of transmission in the United States Postal Service, with postage fully prepaid. Either Party may change addresses for Notices by providing the other Party with a new address in writing with reference to this Section of the Contract. SECTION 10 INDEMNIFICATION A. In accordance with and to the extent provided by California's Tort Claims Act (Government Code Section 825 et seq. and Government Code Sections 995-996.5), the District shall defend and indemnify the General Manager against any and for all losses sustained by the General Manager in direct consequences of the discharge of the General Manager's duties on the District's behalf for the period of the General Manager's employment. B. Nothing in this Contract shall expand the District's defense and indemnification obligations beyond those provided in the Government Code Tort Claims Act (Government Code Section 825, et seq.) and Government Code Sections 995-996.5. SECTION 11 - GENERAL PROVISIONS A. General Manager shall comply with all local and state requirements regarding conflicts of interest and shall avoid personal 4 involvement in situations which are inconsistent or incompatible with a position of General Manager or give rise to the appearance of impropriety. B. The terms of this Contract are intended by the parties as a final expression of their Contract and may not be contradicted by evidence of any prior Contract or contemporaneous oral Contract. The parties further intend that this Contract constitutes the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Contract. Any amendments to this Contract must be in writing and executed by both parties. C. In the event of General Manager's death, General Manager's heirs, legatees, devisees, executors or legal representatives shall be entitled to (a) all billable hours earned, but not paid. General Manager and his heirs, legatees, devisees, executors or legal representatives shall not be entitled to any other compensation, including, without limitation, any severance compensation. D. If any term, covenant, condition or provision of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be effected, impaired or invalidated thereby. E. This Contract shall be governed by the laws of the State of California. The parties agree that in the event any legal action is taken to enforce/interpret any provisions of this Contract, said action shall be filed in the court of proper jurisdiction within the County of San Luis Obispo. F. The parties acknowledge that they understand the significance and consequences of this Contract. The parties also acknowledge that they have been given full opportunity to review and negotiate this Contract and execute it only after full reflection and analysis, and that they have had an opportunity to review this document and its application and meaning with their respective attorneys and advisors. This Contract shall not be interpreted against the party who prepared the initial draft, because all parties participated in the drafting of this Contract by having ample opportunity to review and submit suggested changes or corrections for incorporation into the final version of this Contract. G. This Contract shall be binding upon and shall inure to the benefit of the prospective heirs, executors, administrators, successors and assigns of the parties, provided however that the District General Manager may not assign obligations hereunder. H. General Manager shall not assign this Contract in whole or in part. . The above Recitals are true and correct and incorporated herein by reference. 5 J. This Contract may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument, and shall be governed by the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have executed this Contract on the below identified dates. DATE: , 2025 GENERAL MANAGER: DISTRICT: BRADLEY HAGEMANN PETER KELLEY Approved as to form: SHANNON D. BOYD, District Legal Counsel 6 Avila Beach Community Services District POLICY HANDBOOK POLICY TITLE: Job Description - General Manager POLICY NUMBER: 2300 2300.1 Description. The General Manager is the Executive Officer of the District and for the Board of Directors. Helshe administers the District and has exclusive management and control of the operations and works of the District, subject to approval by the board of Directors, and provides day-to-day leadership for the District. Helshe has general charge. responsibility and control over all properly of the District. 2300.1.1 He/she attends all meetings of the District's Board, and such other meetings as the Board specifies from time to time. 2300.1.2 He/she employs such assistants and other employees as helshe deems necessary for the proper administration of the District and the proper operation of the works of the District, in accordance with Policy #2150, Compensation; I subject to approval by the Board of Directors. Helshe shall delegate authority at his/her discretion and has authonity over and directs all employees, including terminating for cause or lack of worthwhile work. His/her personnel management goal will be to provide ar motivating work climate for District employees. 2300.1.3 He/she maintains cordial relations with all persons entitled to the services of the District, and attempts to resolve all public and employee complaints. Helshe shall encourage citizen participation in the affairs of the District. 2300.1.4 He/she seeks (O carry into effect the expressed policies of the Board of Directors. including planning the short, medium and long term work program for the District, facilitating constructive and harmonious Board relations. Helshe shall translate the goals and objectives of the Board to the community. 2300.1.5 Helshe shall prepare and manage the District budget, conducting studies, making oral and written presentations 2300.2 Required Qualifications. He/she shall possess a bachelors degree in public administration or a related field and shall have five years experience in an increasingly responsible public agency management position. He/she shall possess a valid Califomia drivers license. Altematively, work experience to meet educational qualifications may be substituted at the discretion of the Board. 2300-1 2300.3 Desirable Qualifications: possession of a masters degree in public administration or a related field: the ability to efficiently prepare annual budgets and long-term revenue/ outlay plans; the ability to effectively communicate, both written and verbal, with the constituents and other agency personnel; and the ability to meet and serve the public courteously and efficiently 2300-2 AVILA BEACH COMMUNITY SERVICES DISTRICT Post Office Box 309, Avila Beach, CA. 93424 MEMORANDUM TO: Board of Directors FROM: Brad Hagemann, General Manager PM DATE: June 24, 2025 ITEM 9B: Avila Valley Regional Wastewater Alternatives Analysis Recommendation: Receive this staff report and any recommendations from the Ad Hoc Committee. Receive any comments from other Board members and the public and provide direction to staff. BackyroundDscusion: SMMWC currently operates the Wild Cherry Canyon WWTP with a permitted design flow of 150,000 gallons per day (gpd). Current Wild Cherry Canyon WWTP flows are approximately 75,000 gpd and SMMWC projects buildout flow could reach up to 99,000 gpd. The Regional Water Quality Control Board recently enrolled the WWTP into their General Waste Discharge Order which imposes stricter effluent limits that the existing WWTP cannot meet without costly upgrades. In addition, the land lease for the WWTP cannot be renewed, requiring an alternative solution for wastewater treatment. SMMWC retained Water Systems Consulting and Wallace Group to prepare a Wastewater Alternatives Analysis to assist SMMWC in deciding their course of action. The study aims to determine a cost-effect and sustainable approach for wastewater conveyance, treatment and disposal and/or reuse for San Miguelito Mutual Water Company customers. The engineering team considered three alternatives: 1. Pump the raw wastewater to the City of San Luis Obispo WWTP; 2. Pump the raw wastewater to the City of Pismo Beach WWTP; and 3. Collaborate with the Avila Beach Community Services District to expand the existing ABCSD WWTP to accept additional flows from SMMWC and/or other Avila Valley wastewater producers. At the May 13, 2025, Board meeting, the Board discussed the Alternatives Study and formed an Ad Hoc Committee to focus on the pros/cons and feasibility of Alternative Three above. The Committee members are President Kelley and Director Janowicz, with Director Berry as the alternate. Therole ofthe Committee is to lead the evaluation ofthe Study and lead the coordination with the San Miguelito Mutual Water Company representatives and other interested parties. The purpose of this item is to provide the Committee and the Board an opportunity to further discuss Alternative Three and provide direction to the Committee and staff.