BURBANK SANITARY DISTRICT REGULAR MEETING AGENDA FOR …j.b5z.net/i/u/10227713/f/Meeting...

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BURBANK SANITARY DISTRICT REGULAR MEETING AGENDA FOR

May 17, 2016 at 7:00 PM at the DISTRICT OFFICE

1. CALL TO ORDER 2. ROLL CALL AND APPROVAL OF AGENDA 3. PUBLIC COMMENTARY – This area is reserved for items not listed on the agenda. The Brown Act does

not allow discussion or action on items not on the agenda. The Board may briefly respond to comments or questions from members of the public, provide a reference to staff or other resources for factual information,

or direct staff to place the issue on a future agenda. There is a three (3) minute limit for individual speakers. 3.A. Visitor Commentary 3.B. Agency Representatives 3.C. Board Commentary

4. CONSENT CALENDAR

4.A. Approval of Minutes. Board action required: Approve Meeting Minutes from 5/3/16.

5. WARRANTS

5.A. Approval of Warrants. Board action required: Approve 5 (five) warrants.

1. Mark Thomas & Company, Inc. (District Management Services and BSD CIPs) 2. First Tech Federal Credit Union (Board of Directors Payroll) 3. Meyers Nave ( District Legal Services) 4. Roto-Rooter Plumbers (Lateral Stoppage – 115 Boston Ave & 444 Rutland Ave) 5. Cratus, Inc. (Arleta & Irving Ave CIP Project)

6. NEW BUSINESS

6.A. District Insurance. Review of District Insurance Renewal Proposal. Board action required: Approve District Insurance Renewal Proposal.

6.B. SB272 Catalog of Enterprise System. Board action required: Review and approve District’s catalog for posting on District’s website.

6.C. Ordinance No. 62 – Policy update regarding connections, cleanouts, maintenance of side sewers, work about existing sewers and sewage backflow protective devices. Board action required: Review and approve Ordinance No. 62.

7. OLD BUSINESS

7.A. Status of GreenWaste Recovery, Inc. – Contract Renewal. Board action required: None.

7.B. Status update for Annual Spring Clean Up Day. Board action required: None.

7.C. Status Update on the Agreement with City of San Jose – Wastewater Facility. Board action required: None

7.D. Status of District Capital Improvement Program – Arleta & Irving Ave Construction Closeout. Board action required: Accept Project and Adopt Resolution No. 258

Please Note Meeting Location at the District Office in Cupertino at 20863 Stevens Creek Blvd., Suite 100* (Behind Peet’s Coffee and Panera Bread)

Burbank Sanitary District May 17, 2016 Regular Meeting Agenda of 2

8. SUBCOMMITEE REPORTS

8.A. Transparency - Discussion of the transparency of the District business. Board action required: None.

8.A.1. Review and approve of resolutions for District Reserve Policy and Code of Ethics policy. Board action required: Adopt Resolution No. 256 and 257

8.B. District Website – District Website update. Board action required: None.

9. HOUSEKEEPING ITEMS

9.A. Updates on Housekeeping items. Board action required: None. 9.B. Agenda Items for next upcoming meeting. Board action required: None 9.C. Nextdoor.com Update. Board action required: None

10. ADJOURNMENT: NEXT REGULAR MEETING – Tuesday, June 7, 2016

In compliance with the Americans with Disabilities Act of 1990, if you need special assistance to participate in a District meeting, or you need a copy of the agenda, or the agenda packet, in an appropriate alternative format, please contact the District Administrator’s office at (408) 255-2137. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the District staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection at the District Office. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. * Pursuant to Government Code 54954 subsection b, subsection 4, this facility constitutes the closest meeting facility for the Burbank Sanitary District, since the District has no other meeting facility within the boundaries of the territory, over which the Burbank Sanitary District exercises jurisdiction.

BURBANK SANITARY DISTRICT

4. CONSENT CALENDAR

4.A. APPROVAL OF MINUTES

Approve Minutes from Regular Meeting of May 3, 2016

BURBANK SANITARY DISTRICT MINUTES OF REGULAR MEETING BOARD OF DIRECTORS May 3, 2016

Page 1 of 4

1. CALL TO ORDER

President Kaelker-Boor called the meeting to order at 7:03 pm.

2. ROLL CALL AND APPROVAL OF AGENDA

Directors Present: Michelle Kaelker-Boor, Keri Russo Rebecca Yoder, Ken Colson, Rene Prupes

Directors Absent: None Counsel Present: Jennifer Faught (Meyers & Nave) on phone conference for the closed

session Staff: Richard Tanaka, Ivy To, Mark Thomas & Company, Inc. Visitors: None

Motion: To approve the Agenda.

Move: Prupes Second: Russo Board vote: Ayes, Kaelker-Boor, Russo, Yoder, Colson, Prupes Noes, None Absent, None

3. PUBLIC COMMENTARY

A. Visitor Commentary – None B. Agency Representatives – None C. Board Commentary – None

4. CLOSED SESSION

4.A. Conference with Legal Counsel – Anticipated Litigation

Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 case

Closed session discussion commenced at 7:05 pm and ended at 7:26 pm. Reportable action: Board authorized initiation of litigation.

5. CONSENT CALENDAR

A. Approval of Minutes from the Regular Meeting of April 19, 2016

Motion: To Approve Meeting Minutes from the Regular Meeting of April 19, 2016.

Move: Russo Second: Yoder Board vote: Ayes, , Russo, Yoder, Colson, Prupes Noes, None Absent, None Abstain, Kaelker-Boor

Item 4.A.


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6. NEW BUSINESS

6.A. Review and Certify Sewer System Management Plan (SSMP).

Directors reviewed and certified SSMP dated May 3, 2016 with the adoption of the Resolution No. 255.

Motion: Adopt Resolution No. 255.

Move: Russo Second: Yoder Board vote: Ayes, Kaelker-Boor, Russo, Yoder, Colson, Prupes Noes, None Absent, None Abstain, None

6.B. Set a date for Public Hearing on FY2016-17 Taxroll collection for June 21, 2016.

Motion: Set a date for Public Hearing on FY2016-17 Taxroll collection for June 21, 2016.

Move: Yoder Second: Russo Board vote: Ayes, Kaelker-Boor, Russo, Yoder, Colson, Prupes Noes, None Absent, None Abstain, None

6.C. Communication – Audit Finding/Report of the San Jose Recycled Water Program needs more Financial Oversight.

Directors reviewed the report and ordered it be noted and filed

6.D. GreenWaste Recovery, Inc. – January – March 2016 Quarterly Report.

Directors reviewed the report. Director Russo reported that there are some waste piles of yard trimmings left on the street near the curb at 2025 and 2035 Olive Ave for at least a week. Staff to report it to GreenWaste.

7. OLD BUSINESS

7.A. GreenWaste Recovery, Inc. - Contract Renewal.

Staff reported that the renewal contract for Green Waste Recovery, Inc. is being prepared and should be ready for approval at the next meeting, subject to review first by the District Manager and Counsel.

7.B. Annual Spring Clean Up Day.

Directors discussed the final strategy work plan and commented the dumpster locations.


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Staff to revise the dumpster map and provide name tags, yellow vests, hardhats and the contact list of the Clean Up day supervisor to the Directors. Director Colson will post the flyer on the Nexdoor.com. If multi-family residents did not receive flyers, they can call the District office to get the flyers.

7.C. 15% Rate Increase Notice.

Directors reviewed and approved the notice. Staff to mail out notice.

Motion: Approve the 15% Rate Increase Notice.

Move: Colson Second: Yoder Board vote: Ayes, Kaelker-Boor, Russo, Yoder, Colson, Prupes Noes, None Absent, None Abstain, None

7.D. Status Update on the Agreement with City of San Jose – Wastewater Facility

Staff reported that the a protest letter with the 4th quarter payment will be sent to the City on May 20, 2016

7.E. Status of District Capital Improvement Program.

Staff reported the status of Irving and Arleta construction work. Manager Tanaka will work with District Counsel to implement a policy on installing a property line cleanout. Staff also reported that SRFL funding application for Area A – Backyard Sewer Main Rehabilitation Project has been filed with the State.

8. SUBCOMMITTEE REPORTS

A. Transparency

Staff reported that the resolutions for Code of Ethics and Reserve Policy will be on next agenda for approval.

B. District Website

President Kaelker-Boor to post the information of Annual Spring Clean Up Day and Public Hearing for Taxroll Collection on the website.

9. HOUSEKEEPING ITEMS

A. Update on Housekeeping Items.

Staff to update on Ethics Training later this year.


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B. Agenda Items for next upcoming meeting.

Arleta and Irving Project Closeout Resolutions for Reserve Policy and Code of Ethics Nextdoor.comAnnual Spring Clean Up Day SB272 Posting Requirement

C. Nexdoor.com Update.

Director Colson to follow up on the Nextdoor.com update.

10. ADJOURNMENT

Motion: To adjourn meeting at 8:32 pm.

Move: Russo Second: Prupes Board vote: Ayes, Kaelker-Boor, Russo, Yoder, Colson, Prupes

Noes, NoneAbsent, None

Abstain, None

Approved: May 17, 2016 Respectfully Submitted, Mark Thomas & Company, Inc.

District Manager Michelle Kaelker-Boor, President Richard Tanaka


5. WARRANTS

5.A. APPROVAL OF WARRANTS

1. Mark Thomas & Company, Inc. 2. First Tech Federal Credit Union 3. Meyers Nave 4. Roto Rooter Plumbers 5. Cratus Inc.

Warrant List for 05-17-16

# Payee Invoice Date Invoice No. Invoice Amount Description Warrant No.

1 Mark Thomas and Company, Inc 5/10/2016 25414 15,447.94$ District Management Services5/10/2016 25413 17,734.55$ BSD Capital Improvement Projects

MTCo subtotal 33,182.49$ 3565

2 Burbank Sanitary District / First Tech Fed Credit Union n/a 1,200.00$ Board Payroll, Processing Fees/Taxes (Amount Deposited) 3561

Michelle Kaelker-Boor 115.50$ 5/3/2016Keri Russo 231.00$ 4/19/2016, 5/3/2016Rebecca Yoder 231.00$ 4/19/2016, 5/3/2016Ken Colson 231.00$ 4/19/2016, 5/3/2016Rene Prupes 231.00$ 4/19/2016, 5/3/2016

Subtotal actual amt 1,039.50$

3 Meyers Nave 4/12/2016 2016030189 2,379.30$ District legal services5/6/2016 2016040022 2,986.98$ District legal services

Meyer Nave subtotal 5,366.28$ 3562

4 Roto-Rooter Plumbers 4/25/2016 J215492 124.50$ Lateral Stoppage - 115 Boston Ave5/1/2016 J216320 164.50$ Lateral Stoppage - 444 Rutland Ave

289.00$ 3563

5 Cratus Inc. 5/10/2016 Pay App #001 275,150.00$ Arleta & Irving Ave CIP Project No.16-01 3564

TOTAL WARRANT AMOUNT 315,187.77$

TOTAL YEAR-TO-DATE WARRANT AMOUNT FY 2015-16 1,008,334.51$

Item 5.A.1.

Item 5.A.3.

Item 5.A.4.

Item 5.A.5.


6. NEW BUSINESS

6.A. District Insurance 6.B. SB272 Catalog of Enterprise System 6.C. Ordinance No. 62

Alliant Insurance Services, Inc. 100 Pine Street. 11th Floor San Francisco, CA 94111 O 415.403.1400 F 415.874.4813

CA License No. 0C36861 www.alliant.com

2016 – 2017

Commercial Package Insurance Proposal

Presented on May 6, 2016 by:

Seth Cole, ARM Senior Vice President

Burbank Sanitary District

Date Issued: 05/06/2016 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 2

Burbank Sanitary District | 2016 – 2017 Alteris Commercial Package Insurance Proposal

Your Service Team

Seth Cole, ARM Senior Vice-President [email protected]

Phone: 415.403.1419 Cell:

Marilyn Schley, AU, CISR Account Manager-Lead, Team Lead [email protected]

Phone: 415.403.1432 Fax: 415.874-7813



Named Insured / Additional Named Insureds

Named Insured(s) Burbank Sanitary District

Additional Named Insured(s) Additional named insured(s) here.

NAMED INSURED DISCLOSURE

The first named insured is granted certain rights and responsibilities that do not apply to other policy named insureds and is designated to act on behalf of all insureds for making policy changes, receiving correspondence, distributing claim proceeds, and making premium payments.

Are ALL entities listed as named insureds? Coverage is not automatically afforded to all entities unless specifically named. Confirm with your producer and service team that all entities to be protected are on the correct policy. Not all entities may be listed on all policies based on coverage line.

Additional named insured is (1) A person or organization, other than the first named insured, identified as an insured in the policy declarations or an addendum to the policy declarations. (2) A person or organization added to a policy after the policy is written with the status of named insured. This entity would have the same rights and responsibilities as an entity named as an insured in the policy declarations (other than those rights and responsibilities reserved to the first named insured).

Applies to Professional Liability, Pollution Liability, Directors & Officers Liability, Employment Practices Liability, Fiduciary Liability policies (this list not all inclusive). Check your Policy language for applicability. These policies provide protection to the Named Insured for claims made against it alleging a covered wrongful act. Coverage is not afforded to any other entities (unless specifically added by endorsement or if qualified as a “Subsidiary” pursuant to the policy wording) affiliated by common individual insured ownership or to which indemnification is otherwise contractually owed. If coverage is desired for affiliated entities or for contractual indemnities owed, please contact your Alliant Service Team with a full list of entities for which coverage is requested. With each request, include complete financials and ownership information for submission to the carrier. It should be noted, that the underwriter’s acceptance of any proposed amendments to the policy, including expansion of the scope of “Insureds” under the policy could result in a potential diminution of the applicable limits of liability and/or an additional premium charge.



Changes and Developments

It is important that we be advised of any changes in your operations, which may have a bearing on the validity and/or adequacy of your insurance. The types of changes that concern us include, but are not limited to, those listed below:

Changes in any operations such as expansion to another states, new products, or new applications of existing products.

Travel to any state not previously disclosed. Mergers and/or acquisition of new companies and any change in business ownership, including

percentages. Any newly assumed contractual liability, granting of indemnities or hold harmless agreements. Any changes in existing premises including vacancy, whether temporary or permanent,

alterations, demolition, etc. Also, any new premises either purchased, constructed or occupied Circumstances which may require an increased liability insurance limit. Any changes in fire or theft protection such as the installation of or disconnection of sprinkler

systems, burglar alarms, etc. This includes any alterations to the system. Immediate notification of any changes to a scheduled of equipment, property, vehicles, electronic

data processing, etc. Property of yours that is in transit, unless previously discussed and/or currently insured.

Please keep your Alliant representative(s) informed so they can assist you in making the right decisions regarding your insurance needs.

PROGRAM MANAGERwww.alterisus.com

Alteris Insurance Services, Inc.Agency License No. 3537131

INSURANCE PROPOSALBurbank Sanitary District

EFFECTIVE DATE7/1/2016

PRESENTED BY:Apex Insurance Services

INSURED: Burbank Sanitary District EFFECTIVE DATE: 7/1/2016DISCLAIMER: Actual coverage is subject to the language of the policies as issued. Your issued policy may contain limits, exclusions, and limitations that are not detailed in this proposal.

P R E M I U M S U M M A R YNOTE: This proposal is prepared from information supplied to us on the application submitted by your insurance broker. Itmay or may not contain all terms requested on the application. Proposed coverages are provided by the Alteris WaterPluspolicy forms and are subject to the terms, exclusions, conditions and limitations of those policy forms. Actual policiesshould be reviewed for specific details. Specimen policies are available from your insurance broker.

PAGE COVERAGE SECTION PREMIUM

3-7 SECTION 1. PROPERTY(Property, Equipment Breakdown & Mobile Equipment) $ N/A

8 SECTION 2. COMMERCIAL CRIME $ N/A

9-10 SECTION 3. COMMERCIAL GENERAL LIABILITY $ 6,194.00

11 SECTION 4. PUBLIC OFFICIALS & MANAGEMENT LIABILITY(Wrongful Acts, Employment Practices & Employee Benefit Plans) $ 500.00

12 SECTION 5. BUSINESS AUTO $ N/A

13 SECTION 6. COMMERCIAL EXCESS LIABILITY $ 1,073.00

TOTAL ANNUAL PREMIUM(excludes state-imposed taxes, surcharges, and fees) $ 7,767.00

TERRORISM PREMIUM $ 62.00

FULLY EARNED POLICY FEE $ 100.00

STATE-IMPOSED TAXES, SURCHARGES, AND FEES $ N/A

TOTAL AMOUNT DUE**Payment is due in accordance with the producer agreement. $ 7,929.00

NOTES:Both forms WA IL 00001 00(03/12) Common Policy Declaration and WA GL 00003 00(03/12) Commercial GeneralLiability Coverage are amended to include Mark Thomas & Company, Inc. as an insured for the purposes ofsanitary sewer overflows only.

Page 2 of 13Page 2 of 13


Page 3 of 13

S E C T I O N 1 . P R O P E R T Y *

*IS THIS SECTION INCLUDED IN THE PROPOSAL? No

CARRIER:Allied World Assurance Company or affiliateA XV (Excellent) A.M. Best Rating

FORM:Special Causes of LossProprietaryIntegrated

LIMITS:Blanket Property: (Real Property & Business Personal Property) N/A

Blanket Coverage Extension:A separate blanket limit that applies to the following coverages: Business Income,Extended Business Income, Commandeered Property, Civil Authority, Extra Expense,Tenant Leasehold Interest, Electronic Data, Preservation of Property.

N/A

Equipment Breakdown / Boiler & Machinery: N/AMobile Equipment(Scheduled): N/AMobile Equipment (unscheduled, maximum $10,000 any one item): N/AMobile Equipment (borrowed, rented & leased): N/AEarthquake:(earth movement excluded)

N/A

Flood Zone AE: N/AFlood Zone X:(shaded/unshaded)

N/A

DEDUCTIBLES:N/A PropertyN/A Mobile EquipmentN/A Equipment Breakdown (aboveground & less than 50 feet belowground)N/A Equipment Breakdown (greater than 50 feet belowground)N/A Earthquake (earth movement excluded)N/A Flood Zone X (per occurrence)N/A Flood Zone AE* (per occurrence)N/A Flood Zone AE* (per damaged structure / per occurrence)N/A Named Storm Wind/Hail* (per occurrence)N/A Named Storm Wind/Hail* (per damaged structure / per occurrence)

*the greater of the deductibles will be applied

POLICY HIGHLIGHTS:Blanket Policy LimitsBlanket Coverage Extension LimitsNo Coinsurance PenaltyEquipment BreakdownBroad Definition of Covered PropertyProprietary Coverage Extensions

VALUATION:Replacement Cost: Real Property & Business Personal PropertyActual Cash Value: Mobile Equipment Actual Loss Sustained: Loss of Income & ExpensesMarket Price: Fine Arts



Page 4 of 13

SPECIAL COVERAGES:

New Locations Or Newly Constructed Property:Pays up to $1,000,000 for your new real property while being built on or off described premises as wellas real property you acquire, lease or operate at locations other than the described premises; andbusiness personal property located at new premises.

Pays up to $250,000 for covered property damaged by an interruption in utility service to the describedpremises. The interruption in utility service must result from direct physical loss or damage by aCovered Cause of Loss and does not apply to loss or damage to electronic data, including destructionor corruption of electronic data. Separate limits apply to Direct Damage and BusinessIncome/Expense Expense.

Pollution Remediation Expenses:Pays up to $100,000 or $250,000 for remediation expenses resulting from a Covered Causes of Lossor Specified Cause of Loss occurring during the policy period and reported within 180 days. CoveredCauses of Loss means risks of direct physical loss unless the loss is excluded or limited by theProperty Coverage Form. Specified Cause of Loss means the following: fire; lightning; explosion;windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fireextinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow; ice orsleet; water damage; and equipment breakdown.

SCADA Upgrades:Pays up to $100,000 to upgrade your scheduled SCADA system after direct physical loss from aCovered Cause of Loss. The upgrade is in addition to its replacement cost. SCADA means theSupervisory Control and Data Acquisition system used in water and wastewater treatment anddistribution to monitor leaks, waterflow, water analysis, and other measurable items necessary tomaintain operations.

Contract Penalties:Pays up to $100,000 for contract penalties you are required to pay due to your failure to deliver yourproduct according to contract terms solely as a result of direct physical loss or damage by a CoveredCause of Loss to Covered Property.

Contamination:Pays up to $100,000 for loss or damage to covered property because of contamination as a result of aCovered Cause of Loss. Contamination means direct damage to real property and business personalproperty caused by contact or mixture with ammonia, chlorine, or any chemical used in the water and / orwastewater treatment process.

Property In Transit:Pays up to $100,000 for direct physical loss or damage to covered property while in transit more than1000 feet from the described premises. Shipments by mail must be registered for covered to apply.Electronic data processing property and fine arts are excluded.

Unintentional Errors:Pays up to $100,000 for any unintentional error or omission you make in determining or reportingvalues or in describing the covered property or covered locations.



Page 5 of 13

KEY DEFINITIONS

Real Property:The buildings, items or structures described in the Declarations that you own or that you have leased orrented from others in which you have an insurable interest. This includes:

Aboveground piping;Aboveground and belowground penstock;Additions under construction;Alterations and repairs to the buildings or structures;Buildings;Business personal property owned by you that is used to maintain or service the real property orstructure or its premises, including fire-extinguishing equipment; outdoor furniture, floor coveringsand appliances used for refrigerating, ventilating, cooking, dishwashing or laundering;Completed additions;Exterior signs, meaning neon, automatic, mechanical, electric or other signs either attached to theoutside of a building or structure, or standing free in the open;Fixtures, including outdoor fixtures;Glass which is part of a building or structure;Light standards;Materials, equipment, supplies and temporary structures you own or for which you are responsible,on the premises or in the open (including property inside vehicles) within 1000 feet of the premises,used for making additions, alterations or repairs to buildings or structures at the premises;Paved surfaces such as sidewalks, patios or parking lots;Permanently installed machinery and equipment;Permanent storage tanks;Solar panels;Submersible pumps, pump motors and engines; Underground piping located on or within 1000 feet of premises described in the Declarations;Underground vaults and machinery.

Business Personal Property:The property you own that is used in your business including:

Furniture and fixtures;Machinery and equipment;Computer equipment;Communication equipment;Labor materials or services furnished or arranged by you on personal property of others;Stock;Your use interest as tenant in improvements and betterments.Leased personal property for which you have a contractual responsibility to insure.

Pollution Conditions:The discharge, dispersal, release, seepage, migration, or escape of any solid, liquid, gaseous or thermalirritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, minerals, chemicalelements and waste. Waste includes materials to be recycled, reconditioned or reclaimed.



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KEY DEFINITIONS (continued)

Remediation Expenses:

Outdoor Property: Fixed or permanent structures that are outside covered real property including but not limited to:

Historical markers or flagpoles;Sirens, antennas, towers, satellite dishes, or similar structures and their associated equipment;Exterior signs not located at a premises;Fences or retaining walls;Storage sheds, garages, pavilions or other similar buildings or structures not located at a premises;Dumpsters, concrete trash containers, or permanent recycling bins;Hydrants; orElectric utility power transmission and distribution lines and related equipment owned by the insured.

Equipment Breakdown:Direct damage to mechanical, electrical or pressure systems as follows:

Mechanical breakdown including rupture or bursting caused by centrifugal force;Artificially generated electrical current, including electrical arcing, that disturbs electrical devices,appliances or wires;Explosion of steam boilers, steam piping, steam engines or steam turbines owned or leased by you,or operated under your control;Loss or damage to steam boilers, steam pipes, steam engines or steam turbines; orLoss or damage to hot water boilers or other water heating equipment;If covered electrical equipment requires drying out as a result of a flood, we will pay for the directexpenses for such drying out.None of the following are covered objects as respects to equipment breakdown:a. Insulating or refractory material;b. Buried vessel or piping;c. Sewer piping, piping forming a part of a fire protection system or water piping other than:

(1) Feed water piping between any boiler and its feed pump or injector;(2) Boiler condensate return piping; or(3) Water piping forming a part of refrigerating and air conditioning vessels and piping used

for cooling, humidifying or space heating purposes;d. Structure, foundation, cabinet or compartment containing the object;e. Power shovel, dragline, excavator, vehicle, aircraft, floating vessel or structure, penstock, draft

tube or well-casing;f. Conveyor, crane, elevator, escalator or hoist, but not excluding any electrical machine or

electrical apparatus mounted on or used with this equipment; andg. Felt, wire, screen, die, extrusion, late, swing hammer, grinding disc, cutting blade, cable chain,

belt, rope, clutch late, brake pad, non-metallic part or any part or tool subject to frequent,periodic replacement.



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PROPERTY SUBLIMITS:Coverage LimitAccounts ReceivableValuable Papers and RecordsContaminationTools and Equipment Owned by Your EmployeesPersonal Effects and Property of OthersOutdoor Property (unscheduled)New Locations or Newly Constructed Property $1,000,000Business Personal Property at New Locations $1,000,000Utility Services - Direct Damage $250,000

$250,000Dependent Business Premises $250,000Property at Other Locations $250,000Pollution Remediation Expense(specified cause of loss) $250,000

Pollution Remediation Expense (covered cause of loss) $100,000Contract Penalties $100,000SCADA Upgrades $100,000Property in Transit $100,000Backup/Overflow of Water from Sewer, Drain, Sump $100,000Fine Arts $25,000

$25,000Trees, Shrubs & Plants (maximum $1,000 any one item) $25,000Indoor and Outdoor Signs (unscheduled) $25,000Arson Reward $10,000Fire Department Service Charge $5,000Non-Owned Detached Trailers $5,000Cost of Inventory or Adjustment $5,000Patterns, Dies, Molds, Forms $2,500Fire Protection Devices $1,000Debris Removal 25% of scheduled limitOrdinance or Law Provision 25% of scheduled limit

NOTES:Property & Mobile Equipment coverages are excluded



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S E C T I O N 2 . C O M M E R C I A L C R I M E *



FORM:ProprietaryIntegrated

RATING BASIS:On file with underwriterNon auditable

LIMITS:

EMPLOYEETHEFT

FORGERYOR

ALTERATION

INSIDE THE PREMISESTheft of Moneyand Securities

INSIDE THE PREMISESRobbery or Safe Burglary

or Other Property

OUTSIDETHE

PREMISESCOMPUTER

FRAUD

FUNDSTRANSFER

FRAUD

MONEY ORDERS& COUNTERFEIT

PAPER CURRENCY

N/A N/A N/A N/A N/A N/A N/A N/A

DEDUCTIBLE:N/A each claim

DESIGNATED EMPLOYEE BENEFIT PLAN(S):

POLICY HIGHLIGHTS:Separate Limits Apply to Each CoverageCoverage Extended to Directors and Authorized VolunteersFaithful Performance

NOTES:



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S E C T I O N 3 . C O M M E R C I A L G E N E R A L L I A B I L I T Y *

*IS THIS SECTION INCLUDED IN THE PROPOSAL? Yes


FORM:OccurrenceProprietary


LIMITS:Per Occurrence $1,000,000General Aggregate $3,000,000Products & Completed Operations Aggregate $3,000,000Personal & Advertising Injury Aggregate $1,000,000Damage to Premises Rented to You $1,000,000Medical Payments $10,000

DEDUCTIBLE:$5,000 per occurrence including expenses

POLICY HIGHLIGHTS:Duty to DefendBroad Definition of InsuredFellow EmployeePer Location AggregateBlanket Additional Insured Endorsement

OPTIONAL COVERAGES INCLUDED IN QUOTE:

Hired and Nonowned Auto Liability



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SPECIAL COVERAGES:

Water & Wastewater Testing Errors & Omissions:Coverage is provided for damages arising out of an act, error or omission which arises from yourwater or wastewater testing.

Failure To Supply:Coverage is provided for bodily injury or property damage arising out of the failure of any insured toadequately supply water.

Waterborne Asbestos:Coverage is provided for bodily injury or property damage from waterborne asbestos arising out ofpotable water which is provided by you to others.

Contractual Liability - Railroads:Coverage is provided for any contract or agreement that indemnifies a railroad for bodily injury orproperty damage arising out of construction or demolition operations, within 50 feet of any railroadproperty and affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing.

Pollution:Coverage is provided for bodily injury or property damage which occurs or takes place as a result ofyour operations and arises out of the following:

Potable water which you supply to others;Chemicals you use in your water or wastewater treatment process;Natural gas or propane gas you use in your water or wastewater treatment process;Urgent response for the protection of property, human life, health or safety conducted away frompremises owned by or rented to or regularly occupied by you;Your application of pesticide or herbicide chemicals if such application meets all standards of anystatute, ordinance, regulation or license requirement of any federal, state or local government;Smoke drift from controlled or prescribed burning that has been authorized and permitted by anappropriate regulatory agency.Fuels, lubricants or other operating fluids needed to perform the normal electrical, hydraulic ormechanical functions necessary for the operation of mobile equipment or its partsEscape or back-up of sewage or waste water from any sewage treatment facility or fixed conduitor piping that you own, operate, lease, control or for which you have the right of way, but only ifproperty damage occurs away from land you own or lease.Sudden and accidental events that are neither expected nor intended by an Insured. However, nocoverage is provided under this exception for petroleum underground storage tanks.

NOTES:



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S E C T I O N 4 . P U B L I C O F F I C I A L S & M A N A G E M E N T L I A B I L I T Y *



FORM:Occurrence

DEFENSE COSTS:Outside the Limits of Liability

LIMITS:

Wrongful Acts $1,000,000 per act

Employment Practices (includingthird party discrimination)

N/A per offense

Employee Benefit Plans N/A per offense

Injunctive Relief $5,000 per act

$3,000,000 aggregate limit

SPECIAL COVERAGES:Inverse Condemnation - No

RATING BASISOn file with underwriterNon auditable

DEDUCTIBLE$10,000 each claim including expenses

RETROACTIVE DATE:

POLICY HIGHLIGHTS:Duty To Defend Broad Definition of Named Insured including Past and Future EmployeesOutside DirectorshipPunitive Damages are Covered Where Insurable by LawNo Intentional Acts, Assault & Battery or Bodily Injury Exclusions

NOTES:



Page 12 of 13

S E C T I O N 5 . B U S I N E S S A U T O *



FORM:ISO Business Auto

PORTFOLIO:Symbol Limit

Combined Single Limit for Bodily Injury & Property Damage(each accident) No Coverage N/A

Hired Auto Liability No Coverage N/ANon-Owned Auto Liability No Coverage N/A

No Coverage N/AMedical Payments No Coverage N/AUninsured / Underinsured Motorists No Coverage N/AHired Physical Damage No Coverage N/A

No Coverage N/ANo Coverage N/A

DEDUCTIBLE:Liability: N/AComprehensive: N/ACollision: N/A

NOTES:



Page 13 of 13

S E C T I O N 6 . C O M M E R C I A L E X C E S S L I A B I L I T Y *



FORM:ProprietaryFollowing Form

LIMITS: $2,000,000/$2,000,000


SCHEDULED UNDERLYING POLICIES:Commercial General Liability - YesHired and Non-Owned Auto Liability - YesPublic Officials & Management Liability - YesWrongful Acts - YesEmployment Practices - NoEmployee Benefit Plans - NoOwned Auto Liability - No

Other:

NOTABLE EXCLUSION:

NOTES:



OPTIONAL COVERAGE. PRIVACY 101*

YES

CARRIER:Allied World National Assurance Company or affiliateA XV (Excellent) A.M. Best RatingIssued on Surplus Lines / Nonadmitted Paper

FORM:Proprietary claims made policy. Defense inside the limits. A policy aggregate applies to all coverages. CoverageA an B have separate aggregate limits applicable to their respective coverage parts. Coverage C and D sharean aggregate limit for their respective coverage parts.

LIMITS:Privacy & Network Security Coverage: $1,000,000

Notification & Credit Monitoring Costs Coverage:Provides reimbursement to the Named Insured for the costs incurred by the Named Insured fornotification to, and for credit monitoring of, any persons residing in the United States, includingEmployees, arising from a Privacy Wrongful Act, which takes place during the Policy Period.

$1,000,000

Data Forensic Coverage: 2.50%

Crisis Management Coverage: 2.50%Means the following amounts when incurred during, or within ninety (90) days prior to, a Material Event: 1. amountsfor which the Named Insured becomes legally liable for those services performed by a public relations firm, crisismanagement firm or law firm selected by the Named Insured and approved in advance in writing by the Insurer, tominimize potential harm to the Named Insured arising from a Material Event, including, without limitation, maintainingand restoring public confidence in the Named Insured, and providing advice to the Named Insured or any of itsdirectors, officers, partners or Employees; and 2. amounts for which the Named Insured becomes legally liable for thereasonable and necessary printing, advertising, mailing of materials, or travel by directors, officers, partners,Employees or the firm rendering services as referenced above. Crisis Management Expenses shall not includecompensation, fees, benefits, overhead, or the charges or expenses of any Insured or any Third Party Contractor.

RETENTION:$1,000 each claim including loss adjustment expenses

TOTAL AMOUNT DUE: $1,040.00 annual premium

$33.28 surplus lines taxes and stamping fee$1,073.28

100% premium, taxes, and stamping fees due upon bindingNOTES:Proposal is subject to signed D-1 from insured and completion of SLA-2 from broker.Combined Tax/Stamping fee: 3.20%Retroactive Date: 7/1/2013




IMPORTANT NOTICE The Foreign Account Tax Compliance Act (FATCA) requires the notification of certain financial

accounts to the United States Internal Revenue Service. Alliant does not provide tax advice so please contact your tax consultant for your obligation regarding FATCA.

The Non-Admitted and Reinsurance Reform Act (NRRA) went into effect on July 21, 2011. Accordingly, surplus lines tax rates and regulations are subject to change which could result in an increase or

decrease of the total surplus lines taxes and/or fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes and/or fees must be promptly remitted to Alliant Insurance

Services, Inc.

CLAIMS REPORTING NOTICE Your policy will come with specific claim reporting requirements. Please make sure you

understand these obligations. Contact your Alliant Service Team with any questions.



Premium Summary

Coverage Expiring Renewal

General Liability $ 6,194.00 $ 6,194.00

Public Officials & Management Liability $ 500.00 $ 500.00 Cyber Liability/Privacy 101 $ 994.00 $ 1,040.00 Excess Liability $ 1,073.00 $ 1,073.00 Terrorism Premium $ 62.00 $ 62.00 Surplus Lines Taxes & Fees $ 31.81 $ 33.28 Company Policy Fee $ 100.00 $ 100.00

Total Annual Premium $ 8,954.81 $ 9,002.28

Payment Terms Premium is due within 20 days of policy inception



Disclosures

This proposal of insurance is provided as a matter of convenience and information only. All information included in this proposal, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This proposal does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees.

Please be advised that this proposal is also expressly conditioned on there being no material change in the risk between the date of this proposal and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole discretion, modify, or withdraw this proposal whether or not this offer has already been accepted.

This proposal is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific information regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this proposal of insurance

Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.

Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings.

A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com.



Disclosures - Continued

Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does not, however, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage you to review the publicly available information collected to enable you to make an informed decision to accept or reject a particular underwriter. To learn more about companies doing business in your state, visit the Department of Insurance website for that state.

NY REGULATION 194 DISCLOSURE

Alliant Insurance Services, Inc. is an insurance producer licensed by the State of New York. Insurance producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities.

Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the insurance contract or by another third party. Such compensation may vary depending on a number of factors, including the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer also may affect compensation.

The insurance purchaser may obtain information about compensation expected to be received by the producer based in whole or in part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such information from the producer.



Certificates / Evidence of Insurance

A certificate is issued as a matter of information only and confers no rights upon the certificate holder. The certificate does not affirmatively or negatively amend, extend or alter the coverage afforded by a policy. Nor does it constitute a contract between the issuing insurer(s), authorized representative, producer or certificate holder.

You may have signed contracts, leases or other agreements requiring you to provide this evidence. In those agreements, you may assume obligations and/or liability for others (Indemnification, Hold Harmless) and some of the obligations that are not covered by insurance. We recommend that you and your legal counsel review these documents.

In addition to providing a certificate of insurance, you may be required to name your client or customer on your policy as an additional insured. This is only possible with permission of the insurance company, added by endorsement and, in some cases, an additional premium.

By naming the certificate holder as additional insured, there are consequences to your risks and insurance policy including:

Your policy limits are now shared with other entities; their claims involvement may reduce or exhaust your aggregate limit.

Your policy may provide higher limits than required by contract; your full limits can be exposed to the additional insured.

There may be conflicts in defense when your insurer has to defend both you and the additional insured.



Optional Coverages

The following represents a list of insurance coverages that are not included in this proposal, but are optional and may be available with further underwriting information.

Note some of these coverages may be included with limitations or insured elsewhere. This is a partial listing as you may have additional risks not contemplated here or are unique to your organization.

Crime / Fidelity Insurance

Directors & Officers Liability

Earthquake Insurance

Employed Lawyers

Employment Practices Liability

Event Cancellation

Fiduciary Liability

Fireworks Liability

Flood Insurance

Foreign Insurance

Garage Keepers Liability

Kidnap & Ransom

Law Enforcement Liability

Media and Publishers Liability

Medical Malpractice Liability

Network Security / Privacy Liability and

Internet Media Liability

Pollution Liability

Owned/Non-Owned Aircraft

Owned Watercraft

Special Events Liability

Student Accident

Volunteer Accidental Death &

Dismemberment (AD&D)

Workers’ Compensation

Workplace Violence

Glossary of Insurance Terms

Below are a couple of links to assist you in understanding the insurance terms your may find within your insurance coverages:

http://insurancecommunityuniversity.com/UniversityResources/InsuranceGlossaryFREE.aspxhttp://www.ambest.com/resource/glossary.html

http://www.irmi.com/online/insurance-glossary/default.aspx



Binding Requirements Recap

Below is a recap by Line of Coverage. All coverages require a written request to bind coverage from the client.

Commercial Package Policy

Alliant Bind Request – Signed & Returned Surplus Lines D-1 Form Signed & returned Alteris – Terrorism Disclosure Form – Completed, signed & returned.

In order to complete the underwriting process, we require that you send us any additional information requested above. We are not required to bind coverage prior to our receipt and underwriting acceptance of the above information. However, if we do bind coverage prior to such acceptance, the terms and conditions as indicated above may be amended until such receipt and acceptance. Any agreement to bind coverage in connection with this proposal must be in writing from an authorized employee of the Insurer



Request to Bind Coverage

Burbank Sanitary District

We have reviewed the proposal and agree to the terms and conditions of the coverages presented. We are requesting coverage to be bound as outlined by coverage line below:

Coverage Effective Date

Commercial Package Insurance Policy

______________________________________________ Signature of Authorized Insurance Representative

______________ Date

This proposal does not constitute a binder of insurance. Binding is subject to final carrier approval. The actual terms and conditions of the policy will prevail.

Disclosure -Terrorism Accept/Reject (12/07)

© 2007 National Association of Insurance Commissioners

POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE

You are hereby notified that under the Terrorism Risk Insurance Act, as amended, that you have a right to purchase

insurance coverage for losses resulting from acts of terrorism, as defined in Section 102(1) of the Act: The term “act of

terrorism” means any act that is certified by the Secretary of the Treasury—in concurrence with the Secretary of State,

and the Attorney General of the United States—to be an act of terrorism; to be a violent act or an act that is dangerous to

human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in

the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an

individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy

or affect the conduct of the United States Government by coercion.

YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 85% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.

YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS’ LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED.

Acceptance or Rejection of Terrorism Insurance Coverage I hereby elect to purchase terrorism coverage for a prospective premium of $62.00 I hereby decline to purchase terrorism coverage for certified acts of terrorism. I understand that I will have no coverage for losses resulting from certified acts of terrorism.

Allied World Assurance Company Policyholder/Applicant’s Signature Insurance Company

Burbank Sanitary District Print Name

Richard K. Tanaka

Policy Number

Date

NOTICE:

1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED “NONADMITTED” OR “SURPLUS LINE” INSURERS.

2. THE INSURER IS NOT SUBJECT TO THE FINANCIALSOLVENCY REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.

3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.

4. THE INSURER SHOULD BE LICENSED EITHER AS AFOREIGN INSURER IN ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES (ALIEN) INSURER. YOU SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT, BROKER, OR “SURPLUS LINE” BROKER OR CONTACT THE CALIFORNIA DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREETELEPHONE NUMBER: 1-800-927-4357. ASK WHETHER OR NOT THE INSURER IS LICENSED AS A FOREIGN OR NON-UNITEDSTATES (ALIEN) INSURER AND FOR ADDITIONAL INFORMATION ABOUT THE INSURER. YOU MAY ALSO CONTACT THE NAIC’S INTERNET WEB SITE AT WWW.NAIC.ORG.

5. FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED STATES AND YOU MAY CONTACT THAT STATE’S DEPARTMENT OF INSURANCE TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.

6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD BE ON THE NAIC’S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING OF

APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR AGENT, BROKER, OR “SURPLUS LINE” BROKER TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.

7. CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS. ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: WWW.INSURANCE.CA.GOV.

8. IF YOU, AS THE APPLICANT, REQUIRED THAT THEINSURANCE POLICY YOU HAVE PURCHASED BE BOUNDIMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THISDISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER’S FEE CHARGED FOR THIS INSURANCE WILL BE RETURNED TO YOU.

Date: _______________________________

Insured: _____________________________

D-1 (Effective July 21, 2011)


CATALOG OF ENTERPRISE SYSTEMS

(Pursuant to SB 272 and CA Government Code 6270.5)

An "enterprise system" is a software application or computer system that collects, stores, exchanges and analyzes information that the agency uses that is both of the following: • A multi-departmental system or a system that contains information collected about the public. • A system that serves as an original source of data within an agency. An "enterprise system" does not include any of the following: • Information Technology security systems, including firewalls and other cybersecurity systems. • Physical access control systems, employee identification management systems, video monitoring and other physical control systems. • Infrastructure and mechanical control systems, including those that control or manage street lights, electrical, natural gas or water or sewer functions. • Systems related to 911 dispatch and operation or emergency services. • Systems that would be restricted from disclosure by Section 6254.19. • The specific records that the information technology system collects, stores, exchanges or analyzes.

SB 272 REQUIRES THAT THE CITY:

1. Create a catalog of enterprise systems, containing: • Current system vendor • Current system product • System’s purpose • A description of categories or types of data • The department that is the prime custodian of the data • The frequency that system data is collected • The frequency that system data is updated 2. To make the catalog publicly available upon request 3. To post the catalog in a prominent location on the agency’s website. Exception If the public interest served by not disclosing the information described clearly outweighs the public interest served by disclosure, the local agency may instead provide a system name, brief title or identifier of the system.

BURBANK SANITRY DISTRICT CATALOG OF ENTERPRISE SYSTEMS (CLICK HERE)

Item 6.B.

VENDOR PRODUCT SYSTEM PURPOSE DESCRIPTION OF CATEGORIES OR TYPES OF DATA CUSTODIAN FREQUENCYCOLLECTED

FREQUENCYUPDATED

Microsoft Microsoft Office Suite Office Automation Word ProcessingSpreadsheetsCustom DatabaseE mailCreating DocumentsCreating Inspection LogsExpense RecordsRecords FilingWork Order

Varies Daily Daily

AutoCAD AutoCAD Engineering Design Engineering plansMapping

Varies As needed As needed

EZOT, Inc. iBuilt.net

www.burbanksanitry.org

Site Builder, WebHosting

MapsDistrict InformationDistrict News and UpdatesTransparency Compliance

DistrictAdministrator

Weekly Weekly,or asneeded

First AmericanTitle Company

Fastweb

https://fwprodweb1.firstam.com/fastweb/home.asp

Property Profiles Property Characteristics Comparable Sales Neighborhood Information Area Services

School StatisticsDemographics

As needed

Santa ClaraCounty Assessor’sOffice

Real Property Search

https://www.sccassessor.org

Property Profiles Property Owner’s Name and Mailing Address

Demographics Neighborhood Information Area Services

School StatisticsMaps

As needed

Deltek Deltek FinancialAccounting/PayrollSystem

Timesheet Accounting Payroll

CorelDraw CorelDraw Graphics Maps As needed As neededAdobe Acrobat Adobe Acrobat Create PDF documents Daily DailyGoogle Earth Google Geographical

Information General information Maps

Daily Daily

GraniteXP GraniteXP CCTV Mainline Recording of CCTV Inspectors Daily DailyRidgid Ridgid CCTV Lateral Recording of CCTV Inspectors Daily Daily

ORDINANCE NO. 62


ORDINANCE NO. 62

ORDINANCE ESTABLISHING POLICY REGARDING SEWER CONNECTIONS, CLEANOUTS, MAINTENANCE OF SIDE SEWERS, WORK ABOUT EXISTING SEWERS AND SEWAGE BACKFLOW

PROTECTIVE DEVICES

Whereas, Burbank Sanitary District adopted Ordinance No. 50 on March 4, 2004 establishing a policy regarding sewer connections, cleanouts, maintenance of side sewers, work about existing sewers and sewage backflow protective devices; and

Whereas, State Water Resource Control Board (SWRCB) adopted Order No. 2006-0003 in 2006 which requires compliance with the waste water discharge and reporting; and

Whereas, Statewide General Waste Discharge Requirements for Sanitary Sewer system (GWDR) and Order No. WQ 2008-0002 was adopted on February 20, 2008 which prohibits sanitary sewer overflows and reporting thereof; and

Whereas, District adopted a Sanitary Sewer Management Plan on May 4, 2016 to manage and implement reduction in sanitary sewer overflows; and

Whereas, in the interest of public safety and health, Ordinance No. 50 is being superseded;

It is ordained by the Board of Directors of Burbank Sanitary District as follows:

ARTICLE I. GENERAL PROVISIONS.

Section 1. 1. Rules and Regulations. The following rules and regulations respecting sewer connection of the Burbank Sanitary District, County of Santa Clara, are hereby adopted, and all work in respect thereto shall be performed as herein required and not otherwise.

Section 1. 2. Violation Unlawful. Following the effective date of this ordinance it shall be unlawful for any person to connect to, construct, install or provide other means of sewage disposal from any building in the Burbank Sanitary District except by connection to the sewerage system of said district in the manner as in this ordinance provided.

Section 1. 3. Permit, Inspection, and Fees. Prior to any work being performed the property owner shall obtain a permit from the District and pay all fees due and payable. Condition of permit is subject to Inspection to ensure compliance with District standards.

ARTICLE II. DEFINITIONS

Item 6.C.

ORDINANCE NO. 62

Section 2. 1. Definitions: For the purpose of this ordinance the terms used herein are defined as follows:

Section 2. 4. Cleanout is a pipe fitting and associated piping connected to a side sewer that provides access to the side sewer for purposes of flushing, rodding, cleaning, and other maintenance and diagnostic purposes.

Section 2. 5. Connector means any owner, contractor or renter of any premise connected to the sewer system.

Section 2. 6. District is the Burbank Sanitary District.

Section 2. 7. District Engineer means the Engineer of said District.

Section 2. 8. District Office is the business location of said District.

Section 2. 9. Upper Sewer Lateral is any side sewer beginning at the plumbing or sewer outlets of any buildings and running to the property line.

Section 2. 10. Lower Sewer Lateral is the portion of the side sewer within a public street.

Section 2. 11. Person is any person, firm, company, corporation or association.

Section 2. 12. Plumbing Fixtures is an approved receptacle or device intended to receive sanitary sewage and to discharge same into a soil pipe, waste pipe or special waste pipe with which they are connected.

Section 2. 13. Side Sewer is the part of the horizontal piping beginning at the foundation wall of any building and terminating in the main sewer.

Section 2. 14. Street is any public highway, road, street, avenue, alley, way, easement or right of way.

ARTICLE III. GENERAL REQUIREMENTS & PROCEDURES

Section 3. 1. CONNECTION TO SEWER: All new buildings within the District shall connect to the District sewer system and all land development projects shall include provisions for future buildings to connect to the District’s sewer system. An individual side sewer shall be provided for each building, except that when a building is located in the rear of another building on an interior lot, permission may be granted by the District to connect both buildings to the same side sewer, provided the buildings are under the same ownership and it would not be possible for the buildings to become vested under separate ownership.

Not withstanding the provision hereof, single family residential units with common walls, condominium, stock cooperative, apartments or other similar improvement which entitles owners of interests therein to occupy independent ownership interests and to make joint use of utility and other services, which may be

ORDINANCE NO. 62

provided by facilities owned in common, may, upon issuance of a permit authorizing such common use by the District Engineer, be permitted to maintain a common side sewer or sewers.

SECTION 3. 2. CLEANOUTS:All new side sewers shall be provided by the connector, with a cleanout raised to grade at the back edge of a standard sidewalk. All cleanouts shall meet the Standard Specifications of the District and shall be watertight and maintained by the connector.

All existing side sewers, which do not have cleanouts, will be required to be installed upon following triggering events:

1) When property is being issued any building permits.

2) When the District is implementing the 10 –Year Capital Improvement Project to rehabilitate sewer main. As part of this capital project, all lower sewer laterals will be replaced.

3) When there is sanitary sewer overflow and the cause for the overflow is caused by “bad” lower sewer lateral condition.

Cleanouts are owned and maintained by the property owner. The cost to install cleanouts will be borne by the property owner. When cleanouts are installed by the District upon one of the above triggers, the property owner has the right to pay cash upon demand by the District and must pay within 30 calendar days. If the property owner fails to pay cash for the cleanout, the District will include the cost of the cleanout as part of the sewer service charges charged to that property that are placed on the tax roll, divided into four equal installments over a period of four (4) years, with ___ interest.

SECTION 3. 3. MAINTENANCE OF SIDE SEWERS:It shall be the responsibility of the property owner to maintain the entire side sewer, except that if a cleanout is provided pursuant to Section 3.2. hereof, the District will maintain the lower sewer lateral portion of the side sewer. In the event of a stoppage in the upper sewer lateral, which is caused by the connector, property owner shall reimburse the District for expenses incurred in clearing the stoppage. Where a side sewer provides service to more than one unit or dwelling unit in a development with common walls, condominium, stock cooperative, apartment or other similar improvements, the obligation to maintain the upper sewer lateral shall be in the homeowners’ association or other entity responsible for the maintenance of the property and facilities owned in common.

SECTION 3. 4. WORK ABOUT EXISTING SEWERS: Any person who undertakes to pave, resurface, grade or do any work that contains District sewers shall not cover up or conceal any manhole, or structure or their covers, and every care must be used to protect them. In the event said work results in damage to, or a change of grade in the area of the manhole or structure, the person performing the work shall be responsible, at his own expense, for repairing or modifying the manhole or structure to meet the new grade. Before any work is performed upon District manholes or structures, the District Office shall be contacted and all work shall be done under the direction of the District Engineer, and in accordance with District standards.

SECTION 3. 5. PLUMBING TOO LOW: In all buildings in which there are plumbing fixtures at an elevation too low to permit drainage by gravity from said fixtures to the main or other public sewers, the sewage from said fixtures shall be lifted by

ORDINANCE NO. 62

artificial means and discharged to the public sewer at the owner’s expense. In all buildings where the floor elevation is below the rim elevation of the nearest upstream manhole, provisions for a backflow protective device shall be made in accordance with Section 3.6. A backflow protective device shall also be installed in side sewers at the cost of the property owner whenever the District Engineer determines that it is necessary.

SECTION 3. 6. SEWAGE BACKFLOW PROTECTIVE DEVICES:To assist in the protection of health and property, a backflow valve or overflow device (backflow protective device) shall be installed within one foot from the property line cleanout in the side sewer serving any building where the lowest floor elevation (containing plumbing fixtures) will be less than one (1) foot above the rim of the nearest upstream manhole or flushing inlet. The cost of the backflow protective device shall be at the expense of the property owner.

When a backflow protective device is installed, the elevation of discharge of said installation shall be at least one (1) foot below the lowest floor elevation containing a plumbing fixture.

ARTICLE IV. ENABLING ORDINANCE

SECTION 4. 1. Effective Date. This Ordinance shall be adopted by the District’s Board of Directors, entered into the minutes of the Board meeting at which adoption is approved and published one time in a newspaper of general circulation in the territory of the District. This Ordinance shall be effective at the end of the week in which publication occurs.

SECTION 4. 2. Superseding Effect. This Ordinance supercedes and repeals all ordinances, resolutions or other orders and actions of the Board which may have been adopted previously and which are contrary to or inconsistent with the provisions of this ordinance.

SECTION 4. 3. CEQA. The Board of Directors of the District has determined that the adoption of this Ordinance is exempt from CEQA under section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Alternatively, the adoption of this Ordinance is exempt from CEQA under section 15301, as requiring minor alterations to existing facilities.

* * * * * * * * * *

ORDINANCE NO. 62

STATE OF CALIFORNIA) COUNTY OF SANTA CLARA)

I HEREBY CERTIFY that the foregoing Ordinance was duly and regularly adopted by the Board of Directors of the Burbank Sanitary District, at a rescheduled regular meeting thereof, held on the 17h day of May, 2016 by the following vote.

AYES: DIRECTORS: NOES: DIRECTORS: None ABSENT: DIRECTORS: None ABSTAIN: DIRECTORS: None

__________________________________________Michelle Kaelker-Boor, President Burbank Sanitary District

ATTEST:

________________________________Keri Russo, Secretary Burbank Sanitary District


7. OLD BUSINESS

7.A. GreenWaste Recovery, Inc. 7.B Annual Spring Clean Up Day 7.C. Agreement with City of San Jose 7.D. District Capital Improvement Program

May 5, 2016

Mayor Sam Liccardo City of San Jose 200 East Santa Clara Street, 10th Floor Tower San Jose, CA 95113 [email protected] Re: Cost and Award of Digester and Thickener Facilities Upgrade Project and Effect on Fourth Quarter Fiscal Year 2015-2016 bills. Dear Mayor Liccardo, On April 11, 2016, the Technical Advisory Committee (“TAC”) for the San Jose-Santa Clara Regional Wastewater Facility (“RWF”) convened its monthly meeting. At this meeting, City of San Jose (“City”) staff informed the TAC that the estimated cost of the Digester and Thickener Facilities Upgrade project (“Digester”) exceeds the previously budgeted amount of $92.6 million1 by $30 million, for a new estimated amount of $122.6 million. Because of the $30 million difference between this new estimate and the original budgeted amount, City staff stated that the City is unable to fully fund the project in the current fiscal year. City staff further explained that it was reviewing existing funding to determine if sufficient funds could be liquidated and re-appropriated to allow for the awarding of the contract. But because there are insufficient funds in the current fiscal year’s budget, and the remaining funds are not allocated until next fiscal year, the Tributary Agencies do not believe that the City will award the contract this fiscal year. The Master Agreements provide that the date of financial obligation of the Tributary Agencies is the date of the awarding of contract. Specifically, the Master Agreements state:

Method of Payment. Capital and Land Acquisition. All payments for capital and land acquisition shall be on a quarterly basis, the first quarter beginning July 1st. These invoices shall be presented at the beginning of the quarter in which the obligation is anticipated to occur. The date of financial obligations for capital expenses and land acquisitions shall be the date of award of contract. These payments shall be based upon the budget for capital costs for the Plant as recommended by TPAC and approved by the Administering Agency.2 (emphasis added).

1 Amount derived from the 2016-2020 Capital Improvement Program for Water Pollution Control.

2 Part V(E)(1), emphasis added.

Item 7.C.

Mayor Sam Liccardo May 5, 2016 Page 2 As you know, the City recently issued the Fourth Quarter FY 2015-2016 bill for the RWF to the Tributary Agencies, requiring them to pay, among other costs, their proportional shares of the Digester project costs. The payments are due on or about May 23, 2016. The Tributary Agencies are prepared to pay their Fourth Quarter invoices. However, given the new information that the awarding of contract will be delayed until FY 2016-2017, the Tributary Agencies’ Fourth Quarter invoices should be adjusted or revised to exclude the cost of the Digester. Based on the language in the Master Agreements, the Tributary Agencies should not be charged for the capital costs associated with the Digester until the quarter in which the Digester contract is awarded. In an email dated April 13, 2016 from Britt Strottman, the Tributary Agencies separately requested an extension to pay their Fourth Quarter invoices until July 1, 2016, to allow the parties to resolve additional issues related to their invoices through the mediation process. In a response dated April 14, 2016, Rosa Tsongtaatarii stated that the City is not in a position to agree to an extension at this time, “given there are certain capital project activities that are on schedule to be awarded before the end of the fiscal year.” At that time Ms. Tsongtaatarii may have believed that the Digester project contract was on schedule to be awarded this fiscal year, but it appears that that is no longer the case. Ultimately, it is unfair and unreasonable to ask the Tributary Agencies to pay millions of dollars for a capital project well in advance of the awarding of the contract. For reasons explained in numerous other meetings and correspondence with the City, the Tributary Agencies are obligated to cash fund the Digester, which places enormous financial pressures on the Tributary Agencies’ budgets. In addition, our ratepayers are not obligated to fund the City’s cash reserves and are entitled to the time value of their money. Postponing payment of the Digester until FY 2016-2017 will provide the Tributary Agencies with the additional time necessary to obtain financing and alleviate the depletion of the Tributary Agencies’ cash reserves, a result which stands to benefit all parties involved. Thank you for considering the Tributary Agencies’ position. Please respond at your earliest convenience. We look forward to hearing from you. Sincerely, [signatures on following page]

Mayor Sam Liccardo May 5, 2016 Page 3 City of Milpitas West Valley Sanitation District

______________________ ______________________ Nina Hawk, Public Works Director Jon Newby, District Manager and Engineer Burbank Sanitary District Cupertino Sanitary District

______________________ ______________________ Richard Tanaka, District Manager Richard Tanaka, District Manager County Sanitation District No. 2-3

______________________ Richard Tanaka, District Manager cc: Board of Directors, West Valley Sanitation District Board of Directors, Burbank Sanitary District Board of Directors, Cupertino Sanitary District Board of Directors, Santa Clara County Sanitation District No. 2-3 City Council, City of Milpitas

Burbank Sanitary District 20863 Stevens Creek Blvd., Suite 100

Cupertino, CA 95014 Phone (408) 255-2137 Fax (408) 253-5173

www.burbanksanitary.org "Serving the Burbank Community since 1940"

ITEM 7.D.

May 17, 2016 TO: BURBANK BOARD OF DIRECTORS FROM: RICHARD K. TANAKA, District Manager-Engineer SUBJECT: BSD CIP YEAR 1 PROJECT CLOSEOUT AND FINAL

ACCEPTANCE FOR ARLETA AVE, IRVING AVE, AND CLEVELAND AVE SANITARY SEWER REPAIR PROJECT NO. 16-01

1) Project Close-Out and Financial Accounting

Staff has received the final invoice from Cratus, Inc. for the construction of Arleta and Irving Avenue Sewer Improvements Project 16-01. The proposed payment to Cratus, Inc. is in the amount of $275,150.00, and the total amount will be paid to Cratus, Inc when the project has been accepted by the District. All the conditions and punch list are satisfied to date. Staff has reviewed the invoice and a short summary of the invoice is described below. Item of Work Final Amount

Base bid $213,000.00 CCO No. 1 – Open Cut $10,500.00 CCO No. 2-6 – 11 Laterals and 13 Clean Outs $51,650.00

TOTAL $275,150.00 The original amount bid of the project was $213,000 for main replacement including the wye connections and not any laterals. CCO #1 required open cut in lieu of pipe bursting because of a sag at one segment for an additional $10,500. The 10 Year CIP Plan does not include any lateral repairs. In the project, there were a total of 47 laterals affected and CCTV-ed, and 11 Laterals were replaced and 13 Clean Outs were installed at an additional cost of $51, 650. After Board review, the project is ready for acceptance. Resolution No. 258 has been prepared for acceptance of said improvements.

STAFF RECOMMENDATION:

1. Accept project and authorize the proposed payment of $275,150.00 to Cratus, Inc. as first and final payment

2. Approve Resolution No. 258 accepting said improvements.

of 2 Resolution No. 1252

RESOLUTION NO. 258

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BURBANK SANITARY DISTRICT ACCEPTING THE ARLETA AVENUE AND IRVING

AVENUE SANITARY SEWER IMPROVEMENTS PROJECT, SAN JOSE, CALIFORNIA

WHEREAS, Cratus Inc. has completed the construction of Arleta Avenue and Irving Avenue sanitary sewer rehabilitation project in accordance with the Plans and Specification entitled, “Arleta and Irving Avenue Sewer Improvements Project No. CU-16-01” and Construction Contract Agreement between Cratus Inc. and District, dated February 29, 2016; and WHEREAS, the improvements have been inspected and approved by the District Staff; and WHEREAS, the contractor has provided a two-year extended warranty; and WHEREAS, District Manager-Engineer recommends the Board of Directors to accept the sanitary sewer improvements as follows:

14 Spot Repairs on Arleta Ave Pipe Bursting Segments MH302 to SJ6 in lieu of 18 spot repairs on Irving Ave 25 LF Lateral Replacement and new property line cleanout for 147 Cleveland Ave, 454, 476 Arleta Ave, 326, 338, 369, 370, 377, 378, 405, 417, 430 Irving Ave. New Property line cleanout for 331 Irving Ave.

NOW, THEREFORE, BE IT RESOLVED, the Board of Directors of the

Burbank Sanitary District accepts the Arleta and Irving Avenue sanitary sewer improvements project as complete. * * *

I hereby certify that the foregoing is a full, true and correct copy of a resolution which was duly and regularly passed and adopted by the Sanitary Board of the Burbank Sanitary District, at a meeting thereof held on the 17th day of May, 2016, by the following vote of the members thereof:

AYES: and in favor thereof, Members: NOES: Members:

Item 7.D.

of 2 Resolution No. 1252

ABSENT: Members: ABSTAIN: Members: RECUSE: Members: ____________________________________ Secretary, Burbank Sanitary District APPROVED: ___________________________________ President, Burbank Sanitary District


8. SUBCOMMITEE REPORTS

8.A.1. Resolutions for District Reserve Policy and code of Ethics Policy

RESOLUTION NO. 256

A RESOLUTION OF THE BOARD OF THE BURBANK SANITARY DISTRICT ADOPTING THE FINANCIAL RESERVES POLICY

WHEREAS, the Burbank Sanitary District has adopted a Financial Reserves Policy to ensure that the District continues to have sufficient funding available to meet its operating, non-operating, capital and debt service obligations; and

WHEREAS, the Burbank Sanitary District Board of Directors will conduct an annual review of the Policy and recommend modifications to the Policy as required;

NOW, THEREFORE, it is hereby resolved as follows:

1. The Board of Directors adopts the Financial Reserves Policy attached hereto as Exhibit "A" and directs that it be implemented consistent with all applicable laws and related District policies.

PASSED AND ADOPTED this 17th day of May, 2016 by the following vote:

AYES: and in favor thereof, Members:

NOES: Members

ABSTAIN: Members:

ABSENT: Members:

____________________________________________ Secretary, Burbank Sanitary District

APPROVED:

____________________________________________ President, Burbank Sanitary District

Item 8.A.1.

Exhibit A

BURBANK SANITARY D I S T R I C TRESERVE FUND POLICY

A. POLICY STATEMENT:

One key element of prudent financial planning is to ensure that sufficient funding is availablefor current operating, capital and debt service cost needs. An additional critical element of fiscal responsibility is to anticipate and prepare for future funding requirements as well as forunforeseen disasters and other unforeseen events. The Burbank Sanitary District (District) will at all times strive to have sufficient funding available to meet its operating, capital, and debt service cost obligations. Reserve funds will be accumulated and maintained in a manner, which allows District to fund costs consistent with District Adopted 10-Year CIP Plan while avoiding significant rate fluctuations due to changes in cash flow requirements. District will also maintain an emergency reserve position that may be utilized to fund unexpected disasters or unanticipated major failures. The Board of Directors will annually review the level of reserve funds maintained.

B. DEFINITIONS:

Restricted Reserves: Restrictions on their use are imposed by an outside source such ascreditors, granters, contributors, or laws or regulations of other governments.

Unrestricted Reserves: Have no externally imposed use restriction. The use of UnrestrictedReserve funds is at the discretion of the Board of Directors. There are two categories of Unrestricted Reserves - Designated and Undesignated. At the District, all Unrestricted Reserves are Designated Reserves.

Designated Reserves: Set-aside for a specific purpose, which is determined by the Board of Directors. The Board of Directors also has the authority to redirect the use of these reservefunds as needs of District change.

C. BURBANK SANITARY DISTRICT RESERVES:

District maintains the following reserve funds:

1.0 RESTRICTED RESERVES:

a) Capital Improvement Reserve:The purpose of the Capital Improvement Reserve is to finance future capital facilities beyond the 10-Year Adopted CIP, including CPI and capital support costs that are not included in the budget. These capital improvements are identified in District's Asset Management Plan and Comprehensive Financial Plan Update. These reserve funds are accumulated in an orderly manner in conformance with State law and drawn down as required.

2.0 UNRESTRICTED DESIGNATED RESERVES:

a) Operating Reserve:Since the majority of operating revenues are received periodically over the fiscal year and operating expenses are incurred uniformly over the fiscal year, an operating reserveis necessary to fund those costs attributable to daily operations. To meet dailyoperational needs District has established an Operating Reserve balance at 3 3 % o fannual operating expenses.

b) Replacement Reserve:The Replacement Reserve provides funds for capital replacement and rehabilitation of existing facilities beyond the 10-Year Adopted CIP. Replacement reserve funds are accumulated in an orderly manner and drawn down as required to fund capital replacement projects. To avoid abrupt sewer service rate changes, this reserve may be used to stabilize rates.

c) Emergency Reserve:The Emergency Reserve provides funds for emergency response for potential repair or replacement of capital facilities due to damage from a natural disaster or unanticipated failure in a period when capital improvements funds have otherwise been purposely spent down to preset limits on planned projects. The Emergency Reserve is at the discretion of the Board of Directors and is maintained at a level of $50,000 on an annual basis.

D. SOURCES AND USE OF FUNDS:

RESERVE SOURCE OF FUNDS USE OF FUNDS NOTES

RESTRICTED RESERVES

CapitalImprovement

Interest earned on reserve

Growth related capital

expenditures

Funds collected as change in use fees,

frontage or area fees

UNRESTRICTED DESIGNATED RESERVES

OperatingService charge income and interest earned on

reserveOperating expenses

Reserve balance maintained at 33% of budgeted operating expenses. Excess

(deficit) funds transferredto/from Replacement

Reserve

Replacement

100% of Capacity/DevelopersFees, service charge income , and Interest

earned on reserve

Replacement relatedcapital expendituresand rate stabilization

Limited to 10-year capitalreplacement costs as

identified in theComprehensive Financial

Plan Update

EmergencyOriginally funded by board action. Interest

earned on reserve

Emergency repair orreplacementexpenditures

Reserve balance maintained at $50,000

level. Excess fundstransferred to

Replacement Reserve

RESOLUTION NO. 257

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BURBANK SANITARY DISTRICT ADOPTING

A CODE OF ETHICS POLICY

WHEREAS, the Burbank Sanitary District ("the District") is required to prepare and implement a

Code of Ethics Policy; and

WHEREAS, the Board of Directors has reviewed the policy and has found it complete.

NOW, THEREFORE, BE IT RESOLVED, the Board of Directors of the Burbank Sanitary

District finds that the Code of Ethics for the Burbank Sanitary District is complete and in compliance

with requirements of the State of California Ethics Laws.

* * * * *

I hereby certify that the foregoing is a full, true and correct copy of a resolution which was duly and regularly passed and adopted by the Sanitary Board of the Burbank Sanitary District, at a meeting thereof held on the 17th day of May, 2016, by the following vote:

AYES: and in favor thereof, Member:

NOES: Member:

ABSTAIN: Member :

ABSENT: Member:

President of the Sanitary Board

ATTEST:

Secretary

BURBANK SANITARY DISTRICT CODE OF ETHICS POLICY

The Board of Directors of the Burbank Sanitary District is committed to providing excellence in legislative leadership that results in the provision of the highest quality services to its constituents and to comply with State laws including Assembly Bill 1234 approved in 2005.

In order to assist in the governance of the behavior between and among members of the Board of Directors and District staff, the following rules shall be observed:

The dignity, style, values and opinions of each Director shall be respected, including District staff members.

Responsiveness and attentive listening in communication is expected.

The needs of the District's constituents should be the priority of the Board of Directors. When a Director or District Manager believes he/she may have a conflict of interest, the legal counsel shall be requested to offer advice whether one exists or not.

The primary responsibility of the Board of Directors is the formulation and evaluation of policy. Routine matters concerning the operational aspects of the District are to be delegated to District Manager who is appointed by the Board.

Directors and District Manager should commit themselves to focusing on the business of the District, emphasizing the positive, avoiding double talk, hidden agendas, gossip, backbiting, and other negative forms of communication and interaction.

Directors and District Manager should commit themselves to focusing on issues and not personalities. Thepresentation of the opinions of others should be encouraged. Cliques and voting blocks based on personalitiesrather than issues should be avoided.

Differing viewpoints are healthy in the decision-making process. Individuals have the right to disagree with ideas and opinions, but without being disagreeable. Once the Board of Directors takes action, all Directors commit to support said action and not to create barriers to the implementation of said action.

The work of the District is a team effort. All individuals should work together in the collaborative process,assisting each other in conducting the affairs of the District.

When responding to constituent requests and concerns, Directors and/or District Manager should be courteous, responding to individuals in a positive manner and routing their questions through appropriate channels and to responsible management personnel.

Directors should develop a working relationship with the District Manager wherein current issues, concerns and District projects can be discussed comfortably and openly.

Directors should function as a part of the whole. Issues should be brought to the attention of the Board as a whole, rather than to individual members selectively.

Directors and/or District Manager and his staff shall use title(s) only when conducting official District business, for information purposes or as an indication of background and expertise, carefully considering when each member is exceeding or appearing to exceed his or her authority.

Directors are responsible for monitoring the District's progress in attaining its goals and objectives, while pursuing its mission.

Directors should practice the following procedures:

In seeking clarification on informational items, Directors may directly approach the District Manager or his staff to obtain information needed to supplement, upgrade, or enhance their knowledge to improve legislative decision-making. In handling complaints from residents and property owners of the District, said complaints should be immediately referred directly to the District Manager. In handling items related to safety, concerns for safety or hazards should be reported to the District Manager. Emergency situations should be dealt with immediately by seeking appropriate assistance and reporting to the District Manager. In presenting items for discussion at Board meetings, see Agenda and Board Meeting Policy of the District. In seeking clarification for policy-related concerns, especially those involving personnel, legal action, land acquisition and development, finances, and programming, said concerns should be referred directly to the District Manager and District Counsel. Requests for Assistance. Directors shall direct all requests for work, studies, information, or any task which is to be performed by District Staff to the District Manager. If the District Manager determines that an individual Director’s request for Staff services shall result in a substantial expenditure of time or District resources, the District Manager may refer the request to the Board for its approval. In no event shall any Director make any request of Staff for information or services not related to District business. This policy shall in no way limit the authority of individual Directors to contact the District Manager and District Counsel for the purpose of inquiring about potential conflicts of interest regarding a Director’s own economic interest.

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