burbank sanitary district regular meeting ... packet/bsd_board...burbank sanitary district minutes...

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BURBANK SANITARY DISTRICT

REGULAR MEETING AGENDA FOR November 20, 2018 at 7:00 PM at the DISTRICT OFFICE

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

1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF AGENDA 4. PUBLIC COMMENTARY – This area is reserved for items not listed on the agenda. The Brown Act does not

allow discussion of 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.

4.A. Visitor Commentary 4.B. Agency Representatives 4.C. Board Commentary

5. CLOSED SESSION

5.A. CONFERENCE WITH LEGAL COUNSEL –EXISTING LITIGATION Paragraph (1) of Subdivision (d) of Section 54956.9 Name of Case: County Sanitation District 2-3, West Valley Sanitation District, Cupertino Sanitary District, Burbank Sanitary District and the City of Milpitas v. The City of San Jose, The City of Santa Clara, and Does 1 through 50 inclusive.

6. CONSENT CALENDAR

6.A. Approval of Minutes. Board action required: Approve Meeting Minutes from 10/16/18.

7. WARRANTS

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

1. Mark Thomas & Company, Inc. (District Management Services and BSD CIPs) 2. First Tech Federal Credit Union (Board of Directors’ Payroll) 3. Atkinson Farasyn LLP (District Legal Services) 4. Harshwal & Company LLP (District Audit Services) 5. Cupertino Sanitary District (Common Interest Group Cost Sharing)

8. NEW BUSINESS

8.A. Moving Board Member Election Date to November of Even-Numbered Years. Board action required: Review and approve Resolution No. 271.

8.B. District Audit. Board action required: Review and approve District Audit.

8.C. Waste Stream Reduction. Board action required: None.

8.D. City of San Jose – Revised FY2017-18 Operation & Maintenance Cost Sharing. Board action required: None.

8.E. Department of Industrial Relations – Civil Wage and Penalty Assessment. Board action required: None.

9. OLD BUSINESS

9.A. Operations Code. Board action required: None.

Burbank Sanitary District November 20, 2018 Regular Meeting Agenda of 2

Page 2 of 2

9.B. Master Plan Update. Board action required: None.

9.C. Recruitment/Replacement of Board Members. Board action required: Review and approve Resolution No. 270 – Creating the Position of the District Clerk

9.D. Annual Mainline/Lateral Maintenance Update. Board action required: Review and approve bid for annual mainline and lateral maintenance.

10. SUBCOMMITTEE REPORT

10.A. Recruitment Subcommittee Update. Board action required. None.

11. HOUSEKEEPING ITEMS

11.A. Updates on Housekeeping Items. Board action required: None.

11.B. Agenda Items for Next Upcoming Meeting. Board action required: None.

12. ADJOURNMENT: NEXT REGULAR MEETING – Tuesday, December 4, 2018

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.


6. CONSENT CALENDAR

6.A. APPROVAL OF MINUTES

Approve Minutes from Regular Meeting of October 16, 2018

BURBANK SANITARY DISTRICT MINUTES OF REGULAR MEETING BOARD OF DIRECTORS October 16, 2018

1. CALL TO ORDER

President Yoder called the meeting to order at 7:00 pm.

2. ROLL CALL

Directors Present: Rebecca Yoder, Ken Colson, Michelle Kaelker-Boor, Procopio Sclafani Directors Absent: Rene Prupes (excused) Counsel Present: Steven Baird, Atkinson Farasyn LLP (by phone conference) Staff: Benjamin Porter (District Manager), Richard Tanaka, Mark Thomas Visitors: None

3. APPROVAL OF AGENDA

Motion: To approve the Agenda by moving Item 9C to after Item 5 Closed Session.

Move: Kaelker-Boor Second: Sclafani

Board vote: Ayes, Yoder, Colson, Kaelker-Boor, Sclafani Noes, None Absent, Prupes

4. PUBLIC COMMENTARY

4.A. Visitor Commentary – None. 4.B. Agency Representatives – None. 4.C. Board Commentary – Director Kaelker-Boor informed that she had completed the Ethics

Training.

5. CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL –EXISTING LITIGATION Paragraph (1) of Subdivision (d) of Section 54956.9 Name of Case: County Sanitation District 2-3, West Valley Sanitation District, Cupertino Sanitary District, Burbank Sanitary District and the City of Milpitas v. The City of San Jose, The City of Santa Clara, and Does 1 through 50 inclusive

Closed session discussion commenced at 7:10 pm and ended at 7:21 pm. No reportable action taken at the closed session.

9. OLD BUSINESS (Moved Item)

9.C. Recruitment/Replacement of Board Members.

Board discussed idea of appointing a District Clerk. Staff to prepare an ordinance for District Clerk position to be presented at the next board meeting.

6. CONSENT CALENDAR

6.A. Approval of Minutes from the Regular Meeting of October 2, 2018


Motion: To Approve Meeting Minutes from the Regular Meeting of October 2, 2018.

Move: Sclafani Second: Colson

Board vote: Ayes, Yoder, Colson, Sclafani Noes, None Absent, Prupes Abstain, Kaelker-Boor

7. WARRANTS

7.A. Approval of Warrants

1. Mark Thomas (District Management Services and BSD CIPs) 2. First Tech Federal Credit Union (Board of Directors Payroll) 3. Atkinson Farasyn LLP (District Legal Services) 4. City of San Jose (Treatment Plant Q2 2018-19 Capital Billing) 5. City of San Jose (Treatment Plant Q2 2018-19 O&M, 2009 Bond & SRFL)

Motion: To Approve five (5) warrants as listed.

Move: Kaelker-Boor Second: Sclafani

Board vote: Ayes, Yoder, Colson, Kaelker-Boor, Sclafani Noes, None Absent, Prupes Abstain, None

8. NEW BUSINESS

8.A. FY2018-19 First Quarter Expenditure Review

Manager Porter provided the financial report for first quarter of FY2018-19.

8.B. County Zoning – Definition of Additional Dwelling Unit.

Board and staff discussed the county definition of Additional Dwelling Unit.

8.C. Multiple Dwelling Units.

Board and staff discussed the definition of the multiple dwelling units.

8.D. Annual Mainline/Lateral Maintenance Update.

Board directed staff to proceed with the annual mainline and lateral maintenance bidding process. Closed-captioned televising will follow the cleaning.

8.E. Waste Stream Reduction.

Item was deferred to the next meeting.

8.F. GreenWaste Newsletter and Holiday Schedule.


Board reviewed the GreenWaste newsletter and noted the Holiday schedule

9. OLD BUSINESS

9.A. Operations Code.

Operations Code section 1-3 was updated to include a modified definition of upper and lower sewer laterals, and modernized definitions for waste types. In addition, Section 4 was included. The Board will continue to review sections 1-4, as well as additional sections included in the document.

9.B. Master Plan Update

Board and staff discussed the BSD Master Plan, which is to include the Operations code and the Joint Use Technical Memorandum.

10. SUBCOMMITTEE REPORT

10.A. Recruitment Subcommittee Update

No update.

11. HOUSEKEEPING ITEMS

11.A. Update on Housekeeping Items.

No update.

11.B. Agenda Item for next upcoming meeting

November 6 meeting may be cancelled if the agenda is light.

12. ADJOURNMENT

Motion: To adjourn meeting at 9:09 pm.

Move: Colson Second: Kaelker-Boor

Board vote: Ayes, Yoder, Colson, Kaelker-Boor, Sclafani Noes, None Absent, Prupes Abstain, None

Approved: November 20, 2018 Respectfully Submitted,

Mark Thomas & Company, Inc.

District Manager Rebecca Yoder, President Benjamin T. Porter, PE


7. WARRANTS

7.A. APPROVAL OF WARRANTS

1. Mark Thomas & Company, Inc. 2. First Tech Federal Credit Union 3. Atkinson Farasyn LLP 4. Harshwal & Company LLP 5. Cupertino Sanitary District

Warrant List for 11-20-18

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

1 Mark Thomas & Company, Inc. 11/16/2018 32027 16,740.22$ District Management Services 3753

2 Burbank Sanitary District for Deposits / First Tech Fed Credit Union 600.00$ Board Payroll, Processing Fees/Taxes (Amount Deposited) 3754

Rebecca Yoder 115.50$ 10/16/2018Michelle Kaelker-Boor 115.50$ 10/16/2018Ken Colson 115.50$ 10/16/2018Procopio Sclafani 115.50$ 10/16/2018

Subtotal actual amt 462.00$

3 Atkinson Farasyn , LLP 10/8/2018 SGB-08-746 $285.00 District Legal Services 3755

4 Harshwal & Company LLP 10/15/2018 2267 $10,750.00 District Audit Services 3756

5 Cupertino Sanitary District 9/30/2018 N/A $412.78 Common Interest Agreement Cost Sharing 3757

TOTAL WARRANT AMOUNT 28,788.00$

TOTAL YEAR-TO-DATE WARRANT AMOUNT FY 2018-19 351,719.54$

Ms. Rebecca Yoder November 16, 2018

Burbank Sanitary District Project No. CU-18104

20863 Stevens Creek Blvd., Suite 100 Invoice No. 32027

Cupertino, CA 95014

Project: Burbank Sanitary District - Maintenance & Operation FY2018-2019

Professional Services: October 1, 2018 through November 4, 2018

Task Description Amount

Phase 610 - ADMINSTRATION

CU-18104-610-001 Clerical & Accounting 3,808.48$

CU-18104-610-002 Agreements, Correspondences, etc. 721.50$

CU-18104-610-003 County Dept Permit Coordination 182.01$

CU-18104-610-004 Treatment Plant Coordination 728.04$

CU-18104-610-006 Board Meetings 6,016.56$

CU-18104-610-007 District Management 1,946.34$ Subtotal Administration 13,402.93$

Phase 620 - ENGINEERING SUPPORT

CU-18104-620-011 Engineering Inquiries 797.97$ CU-18104-620-014 Tax Roll Preparation 268.46$

CU-18104-620-015 Field Visitation and Oversight 402.69$ Subtotal Engineering Support 1,469.12$

Phase 700 - INSPECTION

CU-18104-700-011 Stoppage 493.44$

CU-18104-700-014 FOG Inspection 301.45$ Subtotal Inspection 794.89$

Phase 800 - MAINTENANCE & REPAIR

CU-18104-800-011 Preventive Maintenance 1,073.28$ Subtotal Maintenance & Repair 1,073.28$

TOTAL THIS INVOICE 16,740.22$

Reviewed By Benjamin Porter

TERMS: Net 30 Days

SUPPLYING SANITARY SEWERAGE SERVICES FOR: CITY OF CUPERTINO, PORTIONS OF THE CITIES OF SARATOGA, SUNNYVALE, LOS ALTOS AND SURROUNDING UNINCORPORATED AREAS

BOARD OF DIRECTORS

JOHN M. GATTO

WILLIAM A. BOSWORTH

PATRICK S. KWOK

ANGELA S. CHEN

TAGHI S. SAADATI

DISTRICT MANAGER-ENGINEER

MARK THOMAS & COMPANY, INC.

RICHARD K. TANAKA

DISTRICT COUNSEL

ATKINSON ● FARASYN, LLP.

MARC HYNES

20863 STEVENS CREEK BOULEVARD, SUITE 100

CUPERTINO, CALIFORNIA 95014-2154

Phone (408) 253-7071 ● Fax (408) 253-5173 CORRECTED INVOICE Burbank Sanitary District 20863 Stevens Creek Blvd. Suite 100 Cupertino, CA 95014

Attention: Mr. Ben Porter, District Manager-Engineer

RE: Q1 FY 2018-19 Ending September 30, 2018

Section D of the Amendment No. 1 to Common Interest Agreement, dated and executed on October 13, 2017 states:

The lack of satisfactory resolution results in ongoing substantially adverse and unquantifiable fiscal impacts on the Common Interest Group. Consequently, after having exhausted all other available means of negotiating acceptable amendments to the Master Agreements, the Common Interest Group has authorized initiation of litigation against the Cities of San Jose and Santa Clara.

Section 9 of the Agreement was also amended to read as follows:

Any Party to this agreement may withdraw from participation in this Agreement after giving one hundred and eighty (180) days’ notice to the other Parties and their Counsel. In the event of such a withdrawal, however, the obligations of the confidentiality and non-disclosure under this agreement will survive and remain binding on the withdrawing party.

In accordance with our Common Interest Cost Sharing Agreement No. 3, dated and executed on October 20, 2017, each agency maximum commitment through litigation are as follows:

City of Milpitas $1,399,000

West Valley Sanitation District $1,081,500

Cupertino Sanitary District $769,450

County Sanitation District 23- $105,425

Burbank Sanitary District $35,476

Total commitment by 5 Agencies $3,390,851

AMOUNT DUE: $412.78

Please make check payable to: Cupertino Sanitary District Mail to: 20863 Stevens Creek Blvd. Suite 100 Cupertino, CA 95014

Sincerely,

CUPERTINO SANITARY DISTRICT

Common Interest Group Administrative Agency

Richard K. Tanaka Enclosure: Cost Summary Worksheet for Q1 FY 2018-19


8. NEW BUSINESS

8.A. Moving Board Election to Even-Number Years 8.B. District Audit 8.C. Waste Stream Reduction 8.D. CSJ – Revised FY2017-18 O&M Cost Sharing 8.E. Department of Industrial Relations

of 3 Resolution No. 271

RESOLUTION NO. 271

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

CHANGING THE DATE FOR ELECTION OF DIRECTORS TO THE SAME DAY AS THE

STATEWIDE GENERAL ELECTION

WHEREAS, the Burbank Sanitary District ("the District") is a special district operating pursuant to

Division 6, Part 1 Sanitary District Act of 1923, Sections 6400‐6830 of the California Health and Safety

Code; and

WHEREAS, the District is governed by a Board of Directors consisting of five (5) members who are

elected for a term of four (4) years; and

WHEREAS, pursuant to Section 1303(a) of the Elections Code, the date for election of Board members

is currently the first Tuesday following the first Monday in November of each odd‐numbered year; and

WHEREAS, the current Board of Directors has two members whose term will expire in November of

2019 and three members whose terms will expire in November of 2021; and

WHEREAS, Sections 1303(b) and 10404 of the Elections Code authorize the governing board of a

special district to require, by resolution, that the election of its governing body members be held on the

same day as the statewide general election, such resolution to become operative upon approval by the

County Board of Supervisors pursuant to Section 10404 of the Elections Code; and

WHEREAS, the District Board finds and determines that substantial cost savings can be realized and

public participation in District elections can be increased by changing the date for election of Board

members to the same day as the statewide general elections,

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

follows:

1. Pursuant to Section 10404(b) of the Elections Code, the Board of Directors hereby requires,

subject to approval by the County Board of Supervisors, that the election of District Board

members hereafter be conducted on the same day as the statewide general elections, being the

first Tuesday after the first Monday of November in each even‐numbered year.

2. If, pursuant to Section 10404(e) of the Elections Code, this Resolution is approved by the County

Board of Supervisors, then in accordance with the provisions of Section 10404(i) of the Elections

Code, the term of office of the Board members whose term will expire in November, 2019 will be

continued until the statewide general election is held in November, 2020 and their successors are

elected and qualified; likewise, the term of office of the Board members whose term will expire

in November, 2021 will be continued until the statewide general election is held in November,

2022 and their successors are elected and qualified.


3. The specific dates for the filing of nomination papers, notices, canvass of votes, certification of

election results, and all other procedural requirements of the Elections Code pertaining to the

general election of Board members, are set forth in Exhibit A attached hereto and incorporated

herein by reference and shall apply to all future elections of District Board members.

4. The Secretary of the District is directed to submit a certified copy of this Resolution to the County

Board of Supervisors for approval pursuant to Section 10404(e) of the Elections Code.

5. The President of the District is authorized to take such additional actions and execute any

instruments and documents as may be required by the County Board of Supervisors or other

County officials to effectuate the change of dates for election of District members as required by

this Resolution.

President, Burbank Sanitary District Rebecca Yoder

I hereby certify that the foregoing is a true and correct copy of a Resolution duly and regularly passed and

adopted by the Board of Directors of the Burbank Sanitary District at a meeting held on the 20th day of

November 2018, by the following vote:

AYES: and in favor thereof, Members:

NOES: Members:

ABSTAIN: Members:

ABSENT: Members:

ATTEST:

Secretary, Burbank Sanitary District Ken Colson

APPROVED AS TO FORM:

_________________________________ District Counsel Steven Baird


FINANCIAL STATEMENTS

AND

INDEPENDENT AUDITOR'S REPORT

FOR THE YEAR ENDED

JUNE 30, 2018 AND 2017


TABLE OF CONTENTS

PAGE(S)

INDEPENDENT AUDITOR'S REPORT............................................................................. 1 - 2

MANAGEMENT'S DISCUSSION AND ANALYSIS......................................................... 3 - 7

FINANCIAL STATEMENTS

Statement of Net Position.................................................................................................. 8

Statement of Revenues, Expenses and Changes in Net Position...................................... 9

Statement of Cash Flows................................................................................................ 10

Notes to Financial Statements.......................................................................................... 11 - 14

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERSBASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS................................ 15

SCHEDULE OF FINDINGS AND RESPONSES................................................................ 17

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS................................................. 19

INDEPENDENT AUDITOR’S REPORT

To the Board of DirectorsBurbank Sanitary DistrictSan Jose, California

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities of Burbank SanitaryDistrict, as of and for the fiscal years ended June 30, 2018 and 2017, and the related notes to the financialstatements, which collectively comprise Burbank Sanitary District’s basic financial statements as listed in the tableof contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our auditin accordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States and the State Controller's Minimum Audit Requirements for California Special District. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, weexpress no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinions.

1

CALIFORNIA

266 17th Street, Suite 200, Oakland, CA 94612

www.harshwal.com | T 510.452.5051 | F 510.452.3432

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the business-type activities of Burbank Sanitary District as of June 30, 2018, and therespective changes in financial position and cash flows for the period July 01, 2016 through June 30, 2018 ended inaccordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’sDiscussion and Analysis on pages 3 through 7 be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the Government AccountingStandards Board who considers it to be an essential part of financial reporting for placing the basic financialstatements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generally accepted inthe United States of America, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management’s responses to our inquiries, thebasic financial statements, and other knowledge we obtained during our audit of the basic financial statements. Wedo not express an opinion or provide any assurance on the information because the limited procedures do notprovide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 24, 2018 onour consideration of Burbank Sanitary District’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Thepurpose of that report is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on internal control over financial reportingor on compliance. That report is an integral part of an audit performed in accordance with Government AuditingStandards in considering Burbank Sanitary District’s internal control over financial reporting and compliance.

Harshwal & Company, LLPCertified Public Accountants

Oakland, CaliforniaOctober 12, 2018

2


MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)

FOR THE PERIOD FROM JULY 01, 2016 THROUGH JUNE 30, 2018

This section presents management’s analysis of the Burbank Sanitary District (the “District”) financial conditionand activities for two years ended June 30, 2018. Please read it in conjunction with the District financialstatements.

FINANCIAL HIGHLIGHTS

District Balance Sheet

The following table shows a condensed version of the District’s balance sheet for the past 2 fiscal year (FY 2018and 2017) as compared to previous 2 fiscal years.

June 302018

June 302016

Increase/Decrease

($)

Increase/Decrease

(%)

Current assets $ 1,389,530 $ 1,152,463 $ 237,067 %21Capital assets, net 959,798 980,398 (20,600) %(2)

Total assets 2,349,328 2,132,861 216,467 %10

Current liabilities 3,676 14,923 (11,247) %(75)

Total liabilities 3,676 14,923 (11,247) %(75)

Net Investment in capital assets 959,798 980,398 (20,600) %(2)

Unrestricted 1,385,854 1,137,540 248,314 %22

Total Net Position $ 2,345,652 $ 2,117,938 $ 227,714 %11

Current Assets showed an increase of $237,067 or 21% change which includes cash in the County

Treasury Common Pool and cash balance in the bank account. The current asset balance at the end of two

year's period was $1,389,530. The increase in cash balance of $237,067 is primarily due to 15% increase in

sewer services charges to the District rate payers and a refund of $196,660 from City of San Jose for

treatment plant capital, bond refinancing and O&M.

Net capital assets (Net Investment in capital assets) showed a decrease of $20,600. The depreciation of

asset has exceeded the capital investment by this amount ($46,321 in depreciation less $25,720 in capital

investment). District made a decision not to complete the second year District CIP for the last two years

due to uncertainty with the City of San Jose capital project funding for the treatment plant.

Current liability showed a decrease of $11,247 or 75% change. This decrease is the accounts payable.

Two years ago, consultant invoice was recorded as accounts payable, whereas, end of FY 2018, this

invoice was paid and recorded as expenses for the fiscal year.

Unrestricted cash position showed an increase of $227,714 or 22% increase with a current balance of

$1,385,854 for same reasons as increase in current asset.

3




FINANCIAL HIGHLIGHTS-CONT'D

The total net position showed an increase of $227,714 or 11% to $2,345,652 which indicates overall solid

financial position. Moving forward, District will need to manage this growth in capital assets with the

available cash to manage and operate District’s O&M and capital projects, as well as ability to pay for San

Jose Santa Clara Regional Wastewater Facility’s O&M and capital projects.

District Statements of Revenues, Expenses and Changes

The following table shows a condensed version of the District’s Statements of Revenues, Expenses and Changes inNet Position.

June 302018

June 302016

Increase/Decrease

($)

Increase/Decrease

(%)

Operating revenue $ 1,761,687 $ 1,333,381 $ 428,306 %32Operating expenses, excl. depreciation (1,706,739) (1,367,250) 339,489 %25Depreciation expense (46,321) (30,998) 15,323 %49

Net operating loss 8,627 (64,867) 73,494 %(113)Non-operating revenues 219,087 178,085 41,002 %23

Change in net position 227,714 113,218 114,496 %101Net position, beginning 2,117,938 2,004,720 113,218 %6

Net position ending $ 2,345,652 $ 2,117,938 $ 227,714 %11

Operating revenue showed an increase in the amount of $428,306 or 32% increase due one fiscal year rate

increase of 15%.

Operating expenses showed an increase of $339,489 or 25%increase due to increased cost for the San

Jose-Santa Clara Regional Wastewater Facility (from $459,240 to $1,117,528) which was offset/ reduced

by District operating expenses for District administration and engineering management services.

Net operating income is operating revenue minus operating expenses, which showed a net positive income

of $8,627 as compared to prior 2 fiscal year loss of $64,867.

Depreciation adjustment shows an increase of $15,323 due to increased capital asset from the completion

of the first year District capital project.

Non-Operating Revenue showed an increase of $41,002 or 23% due to increased refunds from City of San

Jose for the O&M and capital cost.

Net Position of June 30, 2018 showed an increase of $227,714 or 12%. This increased amount indicates

overall solid financial position. Moving forward, District will need to manage this growth in capital assets

with the available cash to manage and operate District’s O&M and capital projects, as well as ability to

pay for San Jose Santa Clara Regional Wastewater Facility’s O&M and capital projects.

4




BUDGET VERSUS ACTUAL COMPARISON

The following table shows the budget versus actual for the combined two fiscal years (FY 2017-2018 and FY2016-2017).

Budget Actual

Favourable(Unfavourable)

Variance

OPERATING REVENUESSewer service revenue $ 1,750,500 $ 1,746,066 $ (4,434)Other Income 17,000 15,621 (1,379)

Total Operating Revenue 1,767,500 1,761,687 (5,813)

OPERATING EXPENSESSewage treatment/Bonds/Capital outlay 1,151,100 1,117,528 33,572Sewer maintenance 60,000 82,606 (22,606)Replacement and rehabilitation 120,000 118,916 1,084Administration and engineering management 414,400 292,214 122,186Legal 92,000 50,014 41,986Accounting and professional fees 12,000 10,750 1,250Insurance 20,000 18,005 1,995Office 17,500 16,706 794

Total Operating Expenses 1,887,000 1,706,739 180,261

NON-OPERATING INCOMEInterest income 11,000 21,227 10,227Refund & other income 170,000 197,860 27,860

Net gain/(loss) $ 61,500 $ 274,035 $ 212,535

5




Budget and Actual Results Analysis

Overall, the results of the actual operation were within the acceptable tolerance level as compared to theapproved budgets for the past two fiscal years. More specifically, following discussion are provided as guidancefor future programming and budgeting:

The actual operating revenue was less by $4,434 as compared to the budget amount. This difference is

within the acceptable tolerance for budgeting purposes.

Operating Expenses comments:

i) The San Jose Santa Clara Regional Wastewater Facility reported $33,573 less than the budgetedamount for these past two fiscal years.

ii) District Capital Projects was budgeted at $640,000 for these past two fiscal years and incurred$98,875 for State Revolving Loan Application and related engineering support costs, leaving abalance of $541,125. The reason for this unspent amount was due to the District deferringsecond year of CIP because of the issues with the City of San Jose and uncertainty in therequired cash payments to City of San Jose for the San Jose Santa Clara Regional WastewaterFacility.

iii) District discontinued street sweeping. No budget nor expenses were incurred.

iv) District preventive maintenance, emergency R/M was budgeted for $120,000. The actualexpenditure was $118,916.

v) Permit was budgeted at $30,000 to cover District CIP and annual clean-up. The actual permit feepaid is $5,942.

vi) District engineering, management and administration was budgeted at $414,400, whereas theactual expenditure was $292,214, leaving a balance of $122,186. This unspent balance was dueto District deferring engineering services for capital project design.

vii) Legal services were budgeted at $92,000. The actual expense incurred was $41,986, this unspentbalance was due to late initiation of law-suit against Cities of San Jose/Santa Clara.

viii) The total operating expenses was budgeted at $1,887,000. The actual expenditure was$1,706,739, a difference of $188,264 (explanation for major differences are provided above).

Non-operating income only budgeted for income revenue. Due to election by the District to receive cash

payment from City of San Jose, there was an additional income of $196,660.

The last two fiscal year budget had income revenue greater than expenses by $66,500. The actual net gain

was $274,035, resulting in favourable variance of $340,535. This indicates that District is currently

managing expenses and capital expenditures in line with the revenue. However, reserve account to pay for

future capital cost to City of San Jose is not increasing.

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USING THIS BI-ANNUAL REPORT

This bi-annual report consists of two parts: Management’s Discussion & Analysis and Financial Statements. TheFinancial Statements also include notes that explain in more detail some of the information contained in thosestatements.

REQUIRED FINANCIAL STATEMENTS

District financial statements report financial information about the District using accounting methods similar tothose used by private sector companies. The Statement of Net Positions includes all District assets and liabilities,and provides information about the nature and amounts of investments in resources (assets) and obligations tocreditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of theDistrict, and assessing the liquidity and financial flexibility of the District.

All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses, andChanges in Net Positions. This statement measures the success of the District operations over the past year and canbe used to determine whether the District has successfully recovered all its costs through its user fees and othercharges.

The final required financial statement is the Statement of Cash Flows. The primary purpose of this statement is toprovide information about the District cash receipts, cash disbursements and net changes in cash resulting fromoperating, investing, and capital and noncapital financing activities. It provides answers to questions such as,“Where did the cash come from?” “Cash was used for what purpose?” and “What was the change in cash balanceduring the reporting period?”

FINANCIAL ANALYSIS OF THE DISTRICT

One of the most important questions asked about the District finances is whether or not the District’s overallfinancial position has improved or deteriorated. The Statement of Net Positions and the Statement of Revenues,Expenses & Changes in Net Positions report information about the District activities in a way that will helpanswer this question. These two statements report the Net Position of the District and changes in them. You canthink of District Net Position – the difference between assets and liabilities as one way to measure financialhealth or financial position. Over time, increases or decreases in District Net Position is one indicator of whetherits financial health is improving or deteriorating. Other factors to consider include changes in economicconditions, population growth, and new or changed legislation.

RATES AND OTHER ECONOMIC FACTORS

The District is governed in part by provisions of the State Water Resources Control Board (SWRCB) that requirerate based revenues must cover the costs of operation, maintenance, and recurring capital replacement (OM&R).The District is not subject to general economic conditions such as increases or declines in property tax values orother types of revenues that vary with economic conditions such as sales taxes. Accordingly, the District sets itsrates to its users to cover the costs of OM&R plus any increments for known or anticipated changes in programcosts. Increases in operating costs have been kept at or below inflationary levels in recent years for the District’sportion of the expenses. However, the San Jose Santa Clara Treatment Plant expenses have increased at a muchhigher rate due to the need to rehabilitate or replace the plant’s older infrastructure.

REQUESTS FOR INFORMATION

This financial report is designed to provide our customers and creditors with a general overview of Districtfinances, and demonstrate District accountability for the money it receives. If you have any questions about thisreport, or need additional financial information, contact the District at 20863 Stevens Creek Blvd., Suite #100,Cupertino, California, 95014 or by calling (408) 255 2137.

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STATEMENT OF NET POSITION

PROPRIETARY FUND

JUNE 30, 2018

ASSETS:Current assets:

Cash and cash equivalents (Note 3) $ 1,389,530

Total current assets 1,389,530

Capital assets:

Subsurface line, net 959,798

Total Assets 2,349,328

LIABILITIES:Current liabilities:

Accounts payable 3,676

Total Liabilities 3,676

NET POSITION Net investment in capital assets 959,798

Unrestricted 1,385,854

Total Net Position $ 2,345,652

8


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUND


OPERATING REVENUE:Sewer service charges $ 1,746,066Permit, inspection and other fees 15,621

Total operating revenue 1,761,687

OPERATING EXPENSES:Sewage treatment/Bonds/Capital outlay 1,117,528Sewer maintenance 82,606Replacement and rehabilitation 118,916Administration and engineering management 292,214Legal 50,014Accounting and professional fees 10,750Insurance 18,005Office 16,706Depreciation 46,321

Total operating expenses 1,753,060

Operating loss 8,627

NON-OPERATING REVENUE:Interest income 21,227Refunds & other income 197,860

Total non-operating revenue 219,087

Change in net position 227,714

Net position - beginning of period 2,117,938

Net position - end of period $ 2,345,652

The accompanying notes are an integral part of these financial statements

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STATEMENT OF CASH FLOWS

PROPRIETARY FUND


Cash flows from operating activities:Receipts from customers and users $ 1,808,008Payments to suppliers and service providers 1,764,307

Net cash used by operating activities 43,701

Cash flows from investing activities:Interest received 21,227Refunds and other incomes 197,859Purchase of fixed Assets (25,720)

Net cash used by investing activities 193,366

Net decrease in cash and cash equivalents 237,067

Cash and cash equivalents – beginning of the period 1,152,463

Cash and cash equivalents – end of the period $ 1,389,530

Reconciliation of operating loss to net cash used in operating activities:Operating loss $ 8,627

Adjustments to reconcile operating loss to net cash provided by operating activities:Depreciation 46,321

Changes in assets and liabilities:Decrease in accounts payable (11,247)

Net cash used by operating activities $ 43,701

The accompanying notes are an integral part of these financial statements

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NOTES TO BASIC FINANCIAL STATEMENTS


NOTE 1: GENERAL INFORMATION

Burbank Sanitary District (the District) is a special district organized under the California Health and Safety Codeand the Sanitary Act of 1923. The District was established on May 20, 1940. The District provides sewagecollection, treatment and disposal services and operates and maintains approximately 7 miles of collection sewerlines and transports approximately 300,000 gallons of sewage per day to the San Jose/Santa Clara Water PollutionControl Plant. Revenues are derived principally from sewer service charges collected from commercial andresidential users within the District.

The District is governed by a 5-member Board of Directors elected at large. Election of Directors is consolidatedwith the November Elections, with three and two Directors being elected in alternating, odd numbered years.Directors are elected to serve four year terms.

There are no component units, as defined in Governmental Accounting Standards Board (GASB) Statement No.14, The Financial Reporting Entity, which are included in the District’s reporting entity.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Presentation

Although the nucleus of financial reporting entity usually is a primary government, an organization other than aprimary government, such as a stand-alone government, may serve as the nucleus for its financial reporting entitywhen the stand-alone government provides separately issued financial statements. A stand-alone government is alegally separate governmental organization that does not have a separately elected governing body and does notmeet the definition of a component unit. The District meets the criteria as a stand-alone government, andaccordingly, is accounted for and reported on as though it were a primary government.

For financial reporting purposes and in conformity with GASB Codification Section 2100 which defines thegovernmental reporting entity, the District includes all funds that are controlled by, or are dependent on the Boardof Directors of the District. Since no other entities are controlled by, or rely upon the District, the reporting entityconsists solely of the District.

B. Fund Accounting Classification

The financial statements of the District are presented as those of an enterprise fund under the broad category offunds called proprietary funds.

Enterprise funds account for operations that are financed and operated in a manner similar to private businessenterprise, where the intent is that the costs, (expenses, including depreciation) of providing goods or services tothe general public on a continuing basis be financed or recovered primarily through user charges. The acquisitionand capital improvement of the physical plant facilities required to provide these goods and services are financedfrom existing cash resources, cash flow from operations, and contributed capital.

C. Basis of Accounting

Enterprise funds are accounted for using the accrual basis of accounting. Revenues are recognized when they areearned, and expenses are recognized when they are incurred. The District follows Alternative 1 of GASBStatement No. 20 regarding the use of the pronouncements of GASB and Financial Accounting Standards Board("FASB") in its accounting. That is, the District follows (1) all GASB pronouncements and (2) FASBpronouncements. Accounting Principles Board ("APB") Opinions, and Accounting Research Bulletins ("ARB")that do not conflict with GASB pronouncements.

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-CONT'D

C. Basis of Accounting-Cont'd

The District distinguishes operating revenues and expenses from non-operating items. Operating revenues andexpenses generally result from providing services and producing and delivering goods in connection with theDistrict's principal ongoing operations. The principal operating revenues of the District are charges to customersfor sales and services. Operating expenses for the District include the cost of sales and services, administrativeexpenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported asnon-operating revenues and expenses.

D. Capital Assets

GASB Statement No. 34 requires the inclusion of infrastructure capital assets in local government’s basic financialstatements. District infrastructure assets, subsurface line improvements are stated on the basis of historical cost.Capital assets are recorded at historical cost or estimated historical cost in actual cost is not available. Futureinfrastructure additions will be financed from the District’s unrestricted net assets. These assets are depreciatedover their useful lives using the straight-line method.

Subsurface lines 50 years

The District's threshold for capitalization is $1,000.

The District evaluates capital assets for impairment whenever events or changes in circumstances indicate that thecarrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceedsthe future net cash flow the asset is expected to generate. If an asset is considered to be impaired, the impairment tobe recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value.An impairment loss is recognized in profit or loss in the period in which it arises. Management believes that therewas no asset impairment as of June 30, 2018. Future impairment indicators, including the anticipated annexationand reduction in areas served by the District in fiscal year 2018-2019, could require impairment charges to berecorded.

E. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requiresmanagement to make estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Actual results could differ from those estimates.

F. Statement of Cash Flows

For the purpose of the statement of cash flows, all highly liquid investments with maturities of three months or lesswhen purchased are considered cash equivalents.

12




NOTE 3: CASH AND CASH EQUIVALENT

Cash and cash equivalents as of June 30, 2018 consist of the following:

Cash in County Treasury common pool $ 1,342,984Cash with banks 46,546

Total $ 1,389,530

Cash in County Treasury

Funds with the County Treasurer are invested pursuant to investment policy established by the Treasurer andapproved by the Board of Supervisors. The objectives of the policy are, in order of priority, preservation of capital,liquidity and yield. The policy addresses the soundness of financial institutions in which the County depositsfunds, the types of investment instruments and the percentage of the portfolio which may be invested in certaininstruments, as permitted by Section 53600 et seq. of the Government Code of the State of California. Authorizedinstruments in which the Treasurer can invest include debts issued by the County, US Treasury securities, banker’sacceptances, federal, state and local government securities, commercial paper, medium-term corporate notes,negotiable certificates of deposit, local agency investment fund, money market funds, mutual funds, and mortgage-backed securities. Information regarding the characteristics of the entire investment pool including interest raterisk, credit risk, concentration of credit risk and custodial credit risk for deposits and investments can be found inthe County's June 30, 2018 comprehensive annual financial report. A copy of that report may be obtained bycontacting the County's Finance Agency, Controller-Treasurer Department, 70 West Hedding Street, 2nd Floor,East Wing, San Jose, CA 95110.

Governmental Accounting Standards Board, Statement No. 31, "Accounting and Financial Reporting for CertainInvestment and for External Investment Pools" establishes accounting and financial reporting standards for allinvestments held by governmental external investment pools. The statement requires governmental entities toreport investments at fair value.

The original cost of cash with County Treasury common pool as of June 30, 2018 is $1,340,933.

NOTE 4: CAPITAL ASSETS AND DEPRECIATION

Capital assets activity for the period from July 01, 2016 through June 30, 2018 is as follows:

Balance07/01/2016 Increases Decreases

Balance6/30/2018

Subsurface lines - Infrastructureand improvements $ 1,518,074 $ 25,720 $ - $ 1,543,794

Less: Accumulated Depreciation (537,675) (46,321) - (583,996)

Capital assets, net $ 980,399 $ (20,601) $ - $ 959,798

Depreciation expense for the year ended June 30, 2018 is $46,321.

13




NOTE 5: COMMITMENTS AND CONTINGENT LIABILITIES

In the past, City has discussed making a claim against the district for past usage of is sewer system, indicating thatit wished to collect allegedly past due payments from the district for a period from 1997. These payments wouldtotal approximately $33,000. Last year, City and District have had conversation regarding renewal of theagreement with little progress being made to date. It is management's position that District could be liable for amaximum of four years of payment due to statutes of limitation. The estimated payment would be $8,400.However, the management is of the opinion that if there is a new agreement, this small amount would not have amaterial impact on the District's financial position.

NOTE 6: SEWER FEES

The County of Santa Clara bills and collects sewer service fees and apportions collections to the District twice ayear. The fees attach as an enforceable lien on real property as of January 1. Property taxes are payable in twoinstalments. First instalment is due and payable on November 1 and second instalment is due and payable onFebruary 1.

NOTE 7: RISK MANAGEMENT

The District is exposed to various risk of loss related to torts; theft of, damage to, and destructions of assets; errorsand omissions; injuries to third parties and natural disasters. The District pays annual premiums to purchasecommercial insurance through the California Sanitation Risk Management Authority (CSRMA) Primary InsuranceProgram to protect against these risks.

Type of Coverage Limits

General liability $ 2,500,000Public officials / Management liability $ 2,500,000Personal liability coverage for board members $ 500,000Employment practices liability $ 2,500,000Employee benefits liability $ 2,500,000Employee dishonesty coverage $ 400,000Auto liability $ 2,500,000Uninsured/Underinsured Motorist $ 750,000

14

INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of DirectorsBurbank Sanitary DistrictSan Jose, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America andthe standards applicable to financial audits contained in Government Auditing Standards issued by the ComptrollerGeneral of the United States, the financial statements of the business-type activities of Burbank Sanitary District asof and for the period from July 01, 2016 through June 30, 2018, and the related notes to the financial statements,which collectively comprise the Burbank Sanitary District’s basic financial statements, and have issued our reportthereon dated September 24, 2018.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Burbank Sanitary District’sinternal control over financial reporting (internal control) to determine the audit procedures that are appropriate inthe circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Burbank Sanitary District’s internal control. Accordingly, we donot express an opinion on the effectiveness of the Burbank Sanitary District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent, or detect and correctmisstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internalcontrol, such that there is a reasonable possibility that a material misstatement of the Burbank Sanitary District’sfinancial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is adeficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yetimportant enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section andwas not designed to identify all deficiencies in internal control that might be material weaknesses or significantdeficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control thatwe consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Burbank Sanitary District’s financial statements are freefrom material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts.

15

CALIFORNIA

266 17th Street, Suite 200, Oakland, CA 94612

www.harshwal.com | T 510.452.5051 | F 510.452.3432

However, providing an opinion on compliance with those provisions was not an objective of our audit, andaccordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncomplianceor other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and theresults of that testing, and not to provide an opinion on the effectiveness of the Burbank Sanitary District’ internalcontrol or on compliance. This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the Burbank Sanitary District’ internal control and compliance. Accordingly,this communication is not suitable for any other purpose.

Harshwal & Company, LLPCertified Public Accountants

Oakland, CaliforniaOctober 12, 2018

16


SCHEDULE OF FINDINGS AND RESPONSES


Financial Statements

Type of auditors' report issued: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? Yes No

Significant deficiency(ies) identified that arenot considered to be material weakness? Yes None reported

Noncompliance material to financial statements noted? Yes No

17


SCHEDULE OF FINDINGS AND RESPONSES


There is no current year finding.

18


SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


There were no findings in the prior year.

19


9. OLD BUSINESS

9.A. Operations Code 9.B. Master Plan Update 9.C. Recruitment/Replacement of Board Members 9.D. Annual Mainline/Lateral Maintenance Update


SANTA CLARA COUNTY CALIFORNIA

OPERATIONS CODE

ADOPTED BY ORDINANCE NO. XXX

DATED: October, 2018

DISTRICT OFFICE STEVENS CREEK PROFESSIONAL CENTER

20863 STEVENS CREEK BOULEVARD, SUITE 100 CUPERTINO, CALIFORNIA 95014

PHONE (408) 255-2137

i


OPERATIONS CODE

Table of Contents CHAPTER I GENERAL PROVISIONS ............................................................................................... 1

1000. TITLE ................................................................................................................................... 1 1001. APPLICATION OF RULES OF CONSTRUCTION .......................................................... 1 1002. CONTINUATION OF EXISTING LAW ............................................................................. 1 1003. PENDING PROCEEDINGS ............................................................................................... 1 1004. ACTS BY AUTHORIZED REPRESENTATIVES .............................................................. 1 1005. GRAMMATICAL INTERPRETATION .............................................................................. 1 1006. GIVING NOTICE ................................................................................................................ 1 1007. CONSTITUTIONALITY ..................................................................................................... 1 1008. REFERENCE APPLIES TO AMENDMENTS .................................................................. 2

CHAPTER II DEFINITIONS ................................................................................................................ 3 2000. APPLICATION OF DEFINITIONS ................................................................................... 3 2001. BIOHAZADOUS OR BIOMEDICAL WASTE ................................................................... 3 2002. BOARD ................................................................................................................................. 3 2003. BUSINESS SERVICE UNIT .............................................................................................. 3 2004. CLEANOUT ......................................................................................................................... 3 2005. COMMERCIAL SERVICE UNIT ....................................................................................... 3 2006. COMMERCIAL WASTE ..................................................................................................... 3 2007. CONNECTOR ...................................................................................................................... 3 2008. COUNTY .............................................................................................................................. 3 2009. DISTRICT ............................................................................................................................ 3 2010. DISTRICT COLLECTION SERVICE ................................................................................ 3 2011. DISTRICT ENGINEER ....................................................................................................... 4 2012. DISTRICT OFFICE ............................................................................................................. 4 2013. DISTRICT SECRETARY .................................................................................................... 4 2014. DISTRICT SERVICE UNITS ............................................................................................. 4 2015. DWELLING UNIT ............................................................................................................... 4 2016. E-WASTE ............................................................................................................................. 4 2017. FRANCHISEE ..................................................................................................................... 4 2018. GARBAGE ............................................................................................................................ 4 2019. HAZARDOUS WASTE ........................................................................................................ 4 2020. LARGE ITEMS .................................................................................................................... 4 2021. LATERAL SEWER (SEWER LATERAL) .......................................................................... 4 2022. OWNER ................................................................................................................................ 5 2023. PERSON ............................................................................................................................... 5 2024. PLUMBING FIXTURES ..................................................................................................... 5 2025. RECYCLABLE MATERIALS ............................................................................................. 5 2026. SERVICE RECIPIENT ....................................................................................................... 5 2027. SERVICE UNIT ................................................................................................................... 5 2028. STREET ................................................................................................................................ 5 2029. TENANT ............................................................................................................................... 5 2030. YARD WASTE ..................................................................................................................... 5

CHAPTER III ORGANIZATION ............................................................................................................. 6 3000. LEGAL AUTHORITY .......................................................................................................... 6 3001. DISTRICT OFFICE ............................................................................................................. 6 3002. MEETINGS OF DISTRICT BOARD .................................................................................. 7 3003. APPOINTED POSITIONS .................................................................................................. 7

ii

CHAPTER IV POLICY REGARDING SEWER CONNECTIONS, CLEANOUTS, MAINTENANCE OF SEWER LATERALS, WORK ABOUT EXISTING SEWERS AND SEWAGE BACKFLOW PREVENTIONDEVICES ..................................................................................................... 8

ARTICLE 1: GENERAL PROVISIONS ............................................................................................... 8 4100 RULES AND REGULATIONS ........................................................................................... 8 4101 VIOLATION UNLAWFUL .................................................................................................. 8 4102 PERMIT, INSPECTION, AND FEES ................................................................................ 8 ARTICLE 2: GENERAL REQUIREMENTS & PROCEDURES .................................................... 8 4103. CONNECTION TO SEWER ............................................................................................... 8 4104. CLEANOUTS ....................................................................................................................... 8 4105. MAINTENANCE OF SEWER LATERALS ....................................................................... 9 4106. WORK ABOUT EXISTING SEWERS ................................................................................ 9 4107. PLUMBING TOO LOW ....................................................................................................... 9 4108. SEWAGE BACKFLOW PREVENTIONDEVICE .............................................................. 9 ARTICLE 3: LIMITATIONS ON POINT OF DISCHARGE ........................................................... 9 4109. GREASE, OIL, FATS .......................................................................................................... 9 4110. TOXIC, GASES, VAPORS, FUMES ................................................................................. 10 4111. FLAMMABLE LIQUIDS, GASES, SOLIDS .................................................................... 10 4112. REGULATION OF TRUCKED OR HAULED WASTE .................................................. 10 4113. TRUCKED OR HAULED WASTE DEFINED ................................................................. 10

i


OPERATIONS CODE

TableofContents CHAPTER V INFORMAL BIDDING ACT, STANDARD PLANS AND SPECIFICATION, AND CONTRACTOR’S REQUIREMENTS......................................................................................................... 2

ARTICLE 1. THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNT ACT (“INFORMAL BIDDING ACT”) ........................................................................................................... 2 5001. The Uniform Public Construction Cost Account Act (“Informal Bidding Act”) ............... 2 ARTICLE 2. STANDARD PLANS AND SPECIFICATIONS ......................................................... 2 5002. STANDARD PLANS AND SPECIFICATIONS ................................................................. 2 5003. COMPLIANCE WITH REGULATIONS ............................................................................ 2 5004. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) .......................... 2 ARTICLE 3: CONTRACTOR’S REQUIREMENTS ......................................................................... 3 5005. CONTRACTOR'S REGISTRATION ................................................................................... 3 5006. CONTRACTOR'S INSURANCE ......................................................................................... 3 5007. SECURITY FOR PERFORMANCE OF WORK ................................................................ 4 5008. INSPECTIONS .................................................................................................................... 4 5009. CORRECTION OF DEFECTS ............................................................................................ 4 5010. INDEMNIFICATION .......................................................................................................... 5

Burbank Sanitary District Operations Code (October 2018) Page 1

CHAPTER I GENERAL PROVISIONS

1000. TITLE This Code shall be cited and referred to as the BURBANK SANITARY DISTRICT OPERATIONS CODE.

1001. APPLICATION OF RULES OF CONSTRUCTION The general rules of construction set forth in this Article shall be applied throughout this Code, unless the context or the provision clearly requires otherwise.

1002. CONTINUATION OF EXISTING LAW The provisions of this Code insofar as they are substantially the same as existing regulations relating to the same subject matter shall be construed as restatements and continuations, and not as new enactments.

1003. PENDING PROCEEDINGS Any action or proceeding commenced before this Code takes effect and any right accrued is not affected by this Code, but all procedure thereafter taken therein shall conform to the provisions of this Code.

1004. ACTS BY AUTHORIZED REPRESENTATIVES Whenever a power is granted to or a duty is imposed upon an officer or employee of the District, the power may be exercised or the duty may be performed by a deputy or a duly authorized representative of such officer or employee, unless this Code expressly provides otherwise.

1005. GRAMMATICAL INTERPRETATION A. Gender. Each gender includes the masculine, feminine and neutral genders. B. Number. The singular number includes the plural and the plural includes the singular. C. Tense. Words used in the present tense include the past and future tenses, and words

used in the future tense include the past and present tenses.

1006. GIVING NOTICE Whenever a notice is required to be given under this Code, unless different provisions herein are otherwise specifically made in said Code, such notice may be given either by personal delivery thereof to the person to be notified or by deposit in the United States Mail, in a sealed envelope postage prepaid, addressed to such person to be notified, at his last known business or residence address as the name appears in the public records of the District or other records pertaining to the matter to which such notice is directed. Service by mail shall be deemed to have been completed at the time of deposit in the post office.

1007. CONSTITUTIONALITY If any section, subsection, sentence, clause or phrase of this Code is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Code. The Board hereby declares that it would have passed this Code, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or unconstitutional, and if for any reason this Code should be declared invalid or unconstitutional, then the original ordinance or ordinances shall be in full force and effect.


1008. REFERENCE APPLIES TO AMENDMENTS Whenever a reference is made to any portion of this Code, to any ordinances of this District or to any state Code or statute, said reference shall be to such Code, ordinance or statute as now or hereafter amended, unless herein otherwise provided.


CHAPTER II DEFINITIONS

2000. APPLICATION OF DEFINITIONS For the purpose of this Code, certain words, phrases, or terms are defined and shall be construed as defined in this Chapter unless from the context of the Code a different meaning is specifically defined.

2001. BIOHAZADOUS OR BIOMEDICAL WASTE “Biohazardous or Biomedical Waste” shall mean any waste which may cause disease or reasonably be suspected of harboring pathogenic organisms; including waste resulting from the operation of medical clinics, hospitals, and other facilities processing wastes which may consist of, but are not limited to, human and animal parts, contaminated bandages, pathological specimens, hypodermic needles, sharps, contaminated clothing, and surgical gloves.

2002. BOARD “Board” shall mean Board of Directors of Burbank Sanitary District.

2003. BUSINESS SERVICE UNIT “Business Service Unit” shall mean all retail, professional, wholesale and industrial facilities and other commercial enterprises offering goods or services to the public.

2004. CLEANOUT Cleanout at the property line is situated on private property within five feet from the property line and is a pipe fitting and associated piping connected between the upper and lower lateral that provides access to the lower sewer lateral for purposes of flushing, rodding, cleaning, and other maintenance and diagnostic purpose. Cleanout is owned and maintained by the private property owner.

2005. COMMERCIAL SERVICE UNIT “Commercial Service Unit” shall mean Business Service Units, Multi-Family Service Units, and Mixed-Use Dwellings that utilize a cart or bin for the accumulation and set-out of Commercial Waste.

2006. COMMERCIAL WASTE “Commercial Waste” shall mean Solid Waste and Green Waste generated by and at a Commercial Service Unit.

2007. CONNECTOR “Connector” means any owner, contractor, or renter of any premise connected to the sewer system.

2008. COUNTY “County” is the County of Santa Clara.

2009. DISTRICT “District” shall mean the Burbank Sanitary District, Santa Clara County, California.

2010. DISTRICT COLLECTION SERVICE “District Collection Service” shall mean the collection of Solid Waste, Green Waste, and Recyclable Material by the Franchisee.


2011. DISTRICT ENGINEER “District Engineer” means the Engineer of said District.

2012. DISTRICT OFFICE “District Office” is the business location of the Burbank Sanitary District.

2013. DISTRICT SECRETARY “District Secretary” is the Secretary of said Board.

2014. DISTRICT SERVICE UNITS “District Service Units” shall mean those District properties or locations as designated by the District for annual clean-up events or for District requested clean-up services.

2015. DWELLING UNIT “Dwelling Unit” shall mean any individual living unit in single family dwelling (SFD) or multi-family dwelling (MFD) structure or building intended for or capable of being utilized for residential living, either attached or detached, other than a hotel or motel.

2016. E-WASTE “E-Waste” shall mean discarded electrical or electronic devices such as cell phones, computers, monitors, televisions, and other items not containing cathode ray tubes.

2017. FRANCHISEE “Franchisee” should mean the entity granted a franchise by the District to collect and dispose of Solid Waste, Recyclable Materials, and/or Green Waste.

2018. GARBAGE “Garbage” should mean all non-reusable, non-recyclable, non-compostable, and non-hazardous items. Garbage must be generated by and at the Service Unit wherein the Garbage is collected. Garbage does not include those items defined herein as Yard Waste or Recyclable Materials.

2019. HAZARDOUS WASTE “Hazardous Waste” shall mean any material defined as hazardous under state or federal law or any regulations promulgated pursuant to such law, as such laws or regulations may be amended from time to time.

2020. LARGE ITEMS “Large Items” shall mean those materials including furniture, carpets, mattresses, Brown Goods, White Goods, clothing, tires without rims, Large Green Waste, or some combination of such items in a container that dimensions of which container does not exceed four feet by four feet by two feet (4’x4’x2’) and weighing no more than 60 pounds, which are attributed to the normal activities of the Service Unit wherein the Large Items are collected.

2021. LATERAL SEWER (SEWER LATERAL) The sewer line from the service unit to the sewer main further defined as follows:

LOWER LATERAL SEWER (LOWER SEWER LATERAL): The portion of the lateral sewer located within public street right of way, generally between the cleanout and the sewer main and is owned by the District. District will only maintain and service the lower lateral if an accessible cleanout is present. UPPER LATERAL SEWER (UPPER SEWER LATERAL): The portion of the lateral sewer located on private property, generally between the cleanout and the service unit. If the sewer


main is located in an easement, the entire lateral shall be considered to be the Upper Sewer Lateral.

2022. OWNER “Owner” shall mean the person(s) or entity(ies) holding title to the premises.

2023. PERSON “Person” is any person, firm, company, corporation or association.

2024. PLUMBING FIXTURES “Plumbing Fixtures” is an approved receptacle or device intended to receive sanitary sewage and to discharge same into the sewer to which it is connected.

2025. RECYCLABLE MATERIALS “Recyclable Materials” shall mean those materials that are capable of being recycled and which would otherwise be processed or disposed of as Solid Waste.

2026. SERVICE RECIPIENT “Service Recipient” shall mean an individual or company receiving Collection Service.

2027. SERVICE UNIT “Service Unit” shall mean single family dwelling (SFD) Service Units, multiple family dwelling (MFD) Service Units, Business Service Unit including hotels and any unit used as rental business such as Airbnb, or Commercial Service Units.

2028. STREET “Street” is any public highway, road, street, avenue, alley, way easement or right of way.

2029. TENANT “Tenant” shall mean any person(s) or entity(ies), other than the Owner, occupying or in possession of the Commercial Service Unit or Dwelling Unit.

2030. YARD WASTE “Yard Waste” shall mean any vegetative matter resulting from normal yard and landscaping maintenance that is not more than three feet in its longest dimension or six inches in diameter and fits in the receptacle utilized by the Service Recipient with the lid closed. Yard Waste includes branches cut to fit loosely in container, Christmas trees, grass clippings, leaves, sawdust, and tree trimmings and must be placed in the green yard waste container. Yard waste must be generated by and at the Service Unit wherein the yard waste is collected.


CHAPTER III ORGANIZATION

3000. LEGAL AUTHORITY The Santa Clara County Board of Supervisors on May 20, 1940 adopted a resolution establishing in Santa Clara County, a sanitary district to be known as the BURBANK SANITARY DISTRICT. The Burbank Sanitary District is duly organized and existing under and pursuant to Part 1 of Article VI of the Health and Safety Code, and in its incorporation proceedings complied with the provisions of the District Investigation Act of 1933 (California Statutes 1933, Page 2141, and as amended 1937, Chapter 837). The original formation of the District was the authority to operate and maintain sanitary sewer system. The original district boundary map is shown below:

On June 14, 1940, Board of Directors adopted Ordinances No. 1, 2 and 3 establishing time and place for the regular board meeting, declaring the results of classification by lot of the members of the sanitary board and adopting an official seal for the District. On July 6, 1944, Board of Directors adopted Ordinance No. 8 regulating the collection and removal of garbage in the District. On May 19, 1994, Board of Directors adopted trial street sweeping with Green Waste Recovery Company to keep streets clean. This street sweeping operation was terminated on November 1, 2015.

3001. DISTRICT OFFICE The business office of the District is hereby fixed and established at the Stevens Creek Office Center, 20863 Stevens Creek Boulevard, Suite 100, Cupertino, California 95014.


3002. MEETINGS OF DISTRICT BOARD Regular Meetings. The regular meetings of the Board shall be held on the first and third Tuesdays of each calendar month at the hour of 7:00 P.M. The Board may, by motion recorded in the minutes, establish a different day or a different start time, or both, for the conduct of one or more regular meetings, which shall be indicated in any posted or published notice of each meeting.

Meeting Place. All meetings of the Board shall be held at the District business office, unless the meeting is adjourned to or fixed to another place of meeting in a notice for such meeting, in said District.

3003. APPOINTED POSITIONS The following positions are hereby established and shall be filled by appointment by the District Board. Appointees shall hold office at the pleasure of the Board and shall receive such compensation, expense reimbursement, and employment benefits as may be established from time to time by the District Board. A specific individual shall be appointed by the Board to fill each position and the same person may be appointed to more than one position. Where the appointee is a member of, or employed by, any partnership, corporation, or other business entity, the appointment shall be deemed to be of the individual person and not the business entity.

District Manager – Whose duties shall be as prescribed by the District Board and by this Code. Said duties shall include, but are not limited to, supervision of all administrative matters pertaining to the operation, construction, replacement, maintenance and repair of the sanitary sewer system. The District Manager shall also serve as the Clerk of the District and the Purchasing Officer for the District, and shall perform the duties of said offices as prescribed by the District Board and by this Code or otherwise prescribed by law.

District Engineer – Whose duties shall be as prescribed by the District Board and by this Code. Said duties shall include, but are not limited to, the preparation of all plans and specifications for District projects, and the checking of all plans and specifications prepared by an Installer's engineer. The District Engineer shall be a Civil Engineer, registered in accordance with the laws of the State of California.

District Clerk. The District Clerk shall be responsible for posting of notices of Board meetings as required by State law, preparation of minutes of meetings, maintaining records of all District ordinances, resolutions, contracts, and notices, and performing such other duties as prescribed by this Code or otherwise prescribed by law, or assigned to him from time to time by the District Board. Unless otherwise designated by the District Board, the District Manager shall also serve as the District Clerk.

District Counsel. The District Counsel shall act as the legal advisor to the District and shall prepare or review ordinances, resolutions, and other legal documents. He shall at all times be a member in good standing of the State Bar of California. The District Counsel shall perform such other duties as prescribed by this Code or otherwise prescribed by law, or assigned to him from time to time by the District Board.


CHAPTER IV POLICY REGARDING SEWER CONNECTIONS, CLEANOUTS, MAINTENANCE OF SEWER LATERALS, WORK ABOUT EXISTING SEWERS AND SEWAGE BACKFLOW PREVENTIONDEVICES

ARTICLE 1: GENERAL PROVISIONS

4100 RULES AND REGULATIONS The following rules and regulations respecting sewer connection of the Burbank Sanitary District are hereby adopted and all work in respect thereto shall be performed as herein required and not otherwise.

4101 VIOLATION UNLAWFUL Following the effective date of this code 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 code provided.

4102 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 2: GENERAL REQUIREMENTS & PROCEDURES

4103. 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.

Notwithstanding the provision hereof, single family residential units with common walls, condominiums, stock cooperatives, 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 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.

4104. CLEANOUTS All new lower sewer laterals shall be provided by the connector, with a new property line cleanout within five feet from the back edge of a standard sidewalk or from property line. All cleanouts shall meet the Standard Specifications of the District and shall be owned and maintained by the connector/owner.

All existing sewer laterals, which do not have cleanouts, will be required to have a cleanout installed upon the following triggering events:

1) When property is being issued any building permits.

2) When the lower lateral is replaced as part of the District’s 10-Year Capital Improvement Project.


3) When there is a sanitary sewer overflow and the cause for the overflow is caused by lower sewer lateral condition PACP Rating 4 or 5.

Cleanouts are owned and maintained by the property owner. The cost to install cleanouts will be borne by the 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, without interest.

4105. MAINTENANCE OF SEWER LATERALS It shall be the responsibility of the property owner to maintain both the upper and lower sewer laterals, except that if a cleanout is provided pursuant to Section 4104 hereof, the District will maintain the lower sewer lateral. 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 sewer lateral provides service to more than one unit or dwelling unit in a development with common walls, a condominium, a stock cooperative, an apartment or other similar improvements, the obligation to maintain the upper sewer lateral shall be borne by the homeowners’ association or other entity responsible for the maintenance of the property and facilities owned in common.

4106. 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.

4107. 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 artificial means and discharged to the public sewer at the owner’s expense.

4108. SEWAGE BACKFLOW PREVENTIONDEVICE To assist in the protection of health and property, a backflow valve or overflow device (backflow prevention device) shall be installed within one foot from the property line cleanout serving where a lateral flow to the sewer main is by gravity and 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 prevention device shall be at the expense of the property owner.

ARTICLE 3: LIMITATIONS ON POINT OF DISCHARGE

4109. FATS, OIL GREASE (FOG), No person shall discharge, or cause, allow, or permit to be discharged into the sanitary sewer system any liquid or other waste containing floatable and/or dispersed grease, vegetable oil, petroleum oil, non-biodegradable cutting oil, or fat, oil, or grease or products of animal, vegetable, or mineral origin, in excess of 150 parts per million by weight.


4110. TOXIC, GASES, VAPORS, FUMES No Person shall discharge, or cause, allow, or permit to be discharged into the sanitary sewer system any substance of any kind whatsoever which results in the presence of toxic gases, vapors or fumes within the system in a quantity that may cause acute health and/or safety problems for workers in the sanitary sewer system.

4111. FLAMMABLE LIQUIDS, GASES, SOLIDS No person shall discharge, or cause, allow, or permit to be discharged into the sanitary sewer system any gasoline, benzene, naphtha, fuel oil, or any flammable liquid, solid vapor, or gas or other substance, including but not limited to any substance having a closed cup flash point of less than one hundred forty degrees Fahrenheit (140 F) or sixty degrees Centigrade (60 C), using the test, methods specified in Section 261.21 of Title 40 of the Code of Federal Regulations.

4112. REGULATION OF TRUCKED OR HAULED WASTE No person shall cause, allow, or permit to be discharged into the sanitary sewer system any trucked or hauled waste, except at a site specifically designated in a wastewater discharge permit or a receiving station permit.

4113. TRUCKED OR HAULED WASTE DEFINED “Trucked or Hauled Waste” means any waste discharged into the sanitary sewer system after being transported by motorized vehicle from the location where the waste was generated or produced.

BurbankSanitaryDistrictOperationsCode(Datedxxxxx,2018) Page2

CHAPTER V INFORMAL BIDDING ACT, STANDARD PLANS AND SPECIFICATION, AND CONTRACTOR’S REQUIREMENTS

ARTICLE 1. THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNT ACT (“INFORMAL BIDDING ACT”)

5001. TheUniformPublicConstructionCostAccountAct(“InformalBiddingAct”)The Uniform Public Construction Cost Account Act (“the Act”), as set forth in Article 3 of Chapter 2, Part 3, Division 2 (commencing with Section 22000 et seq. of the California Public Contract Code). Among other things, authorizes California local agencies to utilize less formal bidding procedures for public projects valued at less than $175,000, which threshold is increased from time to time; and the Act requires California local agencies to implement uniform cost accounting standards to track the cost of certain public projects that they perform with their own employees; and the California Uniform Public Construction Cost Accounting Commission (“the Commission”) has developed mandatory procedures for tracking the cost of projects performed with the agency’s own employees, as set forth in the Commission’s Cost Accounting Policies and Procedures Manual (the “Cost Accounting Manual”). Pursuant to Section 22030 of the Public Contract Code, the Burbank Sanitary District elected to become subject to the uniform construction cost accounting procedures and formal and informal bidding thresholds set forth in the Act as it may be amended from time to time, and to the commission’s cost accounting policies and procedures as contained in the Cost Accounting Manual, as it may be amended from time to time.

ARTICLE 2. STANDARD PLANS AND SPECIFICATIONS

5002. STANDARDPLANSANDSPECIFICATIONSMinimum standards for the construction of sewers within the District shall be in accordance with the Standard Plans (Details) and Specifications heretofore or hereafter adopted by the District, copies of which are on file and available to the public in the District office. The District Engineer shall have authority to modify the Standard Plans and Specifications whenever he deems such modifications to be necessary or appropriate to accommodate the requirements of the project, or construction conditions, or any physical or environmental circumstances.

"As-built" drawings, in electronic format (PDF) and the number of hard copies required by the District Engineer, showing the actual location of all mains, structures, “Y”s, laterals and cleanouts shall be filed with the District before final acceptance of the work.

5003. COMPLIANCEWITHREGULATIONSAny person constructing a sewer within a public street shall comply with all applicable laws pertaining to the installation of sanitary sewers and any related activities, including cutting of pavement, opening, barricading, lighting and protection of trenches, backfilling and repaving thereof and shall obtain all permits and pay all fees required by the agency having jurisdiction prior to the issuance of a permit by the District. Where an encroachment permit is required to be obtained for sewer work to be performed within a public street, a copy of such permit or other evidence of the issuance thereof shall be provided to the District as a prerequisite to the issuance of any permit by the District for such sewer work.

5004. CALIFORNIADEPARTMENTOFINDUSTRIALRELATIONS(DIR)All District work (including maintenance and construction projects, except for work performed under the Installer’s Agreement prior to acceptance of said improvements by the District) requires compliance with the Prevailing Wage Law and subject to compliance monitoring and enforcement by the California Department of Industrial Relations, pursuant to Labor Code section 1771.4. Under California Labor Code section 1771.1, as amended by S.B. 854, a contractor may not bid, nor be listed as a qualified District contractor, for any bid proposal submitted for a public work unless the contractor and its


subcontractors are registered and qualified to perform public work pursuant to section 1725.5 of the Labor Code. The Bidder and its Subcontractors must be registered and qualified to perform public work pursuant to section 1725.5 of the Labor Code, subject to limited legal exceptions under Labor Code section 1771.1.

In accordance with the provisions of Section 1773.3 of the Labor Code, District will provide notice to the Department of Industrial Relations (DIR) of the award of any public works contract subject to the requirements of Chapter 1 of the Labor Code, within five days of the award. The notice shall be transmitted electronically in a format specified by the DIR (see https://www.dir.ca.gov/pwc100ext/) and will include the name of the contractor, any subcontractor listed on the successful bid, the bid and contract award dates, the contract amount, the estimated start and completion dates, job site location, and any additional information the DIR specifies that aids in the administration and enforcement of this chapter.

ARTICLE 3: CONTRACTOR’S REQUIREMENTS

5005. CONTRACTOR'SREGISTRATIONIt shall be unlawful for any person to install or construct any sewer for connection to, or make connection to, the District sewer system, who is not a master plumber or contractor, whichever is applicable, and licensed to perform such work under the State Contractor's License Law. All such contractors must register with the District Manager prior to commencing or carrying out any such work within the District.

5006. CONTRACTOR'SINSURANCEAll contractors and installers shall procure and maintain for the duration of the contract, including any applicable warranty period, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work by the contractor or installer or its agents, representatives, employees or subcontractors. Unless otherwise permitted or required by the District Manager in writing, such insurance shall conform to the following specifications: A. Minimum scope and limits of insurance.

(1) General liability, occurrence form (including operations, products and completed operations): $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the project/location or the general aggregate limit shall be twice the required occurrence limit.

(2) Automobile liability: $1,000,000 per accident for bodily injury and property damage. (3) Workers' compensation insurance: as required by State law. (4) Employer's liability: $1,000,000 per accident for bodily injury or death.

B. Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the District. At the option of the District, either the insurer shall reduce or eliminate the deductible or self-insured retention as respects the District or the contractor shall provide a financial guarantee satisfactory to the District guaranteeing payment of losses, investigation and defense costs, and other expenses allocated to the deductible or self-insured retention.

C. Insurance policy provisions. The general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:

(1) The District, the District Manager, and the County in which the work will be performed, and their respective officers, officials, employees, agents, and volunteers ("Insured Parties") shall be named as additional insureds.


(2) For any claims related to the work, the contractor's insurance coverage shall be primary as respects the Insured Parties and any insurance or self-insurance maintained by any of the Insured Parties shall be in excess of the contractor's insurance and shall not contribute with it.

(3) The contractor's insurance shall apply separately to each of the Insured Parties against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability.

(4) Each insurance policy required by this Section shall be endorsed to state that coverage shall not be reduced, suspended or canceled by either party except after thirty (30) days prior written notice has been given to the District.

D. Verification of coverage. The contractor shall furnish the District with original certificates of insurance or endorsements evidencing coverage required by Article 2, Section 5201 of this Chapter, in form and substance satisfactory to the District Manager. The certificates shall be received and approved prior to commencement of any work. At the request of the District, the contractor shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by this Section.

A. Subcontractors. The contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All subcontractors shall be subject to the insurance requirements set forth in this Section.

5007. SECURITYFORPERFORMANCEOFWORKAll contractors or installers shall file with the District Manager a Faithful Performance Bond and a Labor and Material Bond, each in the amount of 100% of the contract for District let jobs and 100% of the District Engineer's estimate for installer let contracts. Said Bonds are to be on forms provided or approved by the District, and shall remain in effect for a minimum of one year after acceptance of the improvements by the District Board or the District Engineer and may not to be cancelled until released by the District. Upon approval by the District Board, alternative security may be provided instead of performance and payment bonds, including an irrevocable letter of credit or an irrevocable assignment of a bank account, certificate of deposit, or negotiable securities, all such documents to be in form and substance approved by the District Counsel.

5008. INSPECTIONSAll sanitary sewer construction work conducted within the District shall be subject to inspection by the District Engineer or his representative. The District Engineer may specify certain stages of the work at which inspection approval by the District Engineer must be granted before the work is allowed to proceed.

No construction shall be covered until it has been inspected and approved by the District Engineer. After approval, the contractor shall backfill any trench without delay and restore the surface to its original condition. Construction that has been covered without approval of the District Engineer shall, upon demand by the District Engineer, be uncovered for inspection. In all cases where inspection is required, the contractor shall give at least two (2) business days advance notice to the District Engineer stating the time when the work will reach the stage of completion at which the inspection must be conducted.

5009. CORRECTIONOFDEFECTSAll persons performing work connected with the sanitary sewer system shall be held strictly responsible for any and all acts of agents, subcontractors, and employees in connection with said work. The contractor or installer shall be solely liable for any defects in the performance of its work, or any failure of the improvements that may be caused by such defects.


In the event any construction, when inspected by the District, is found to be defective, the Contractor shall take immediate steps to correct such defects to the satisfaction of the District Engineer.

5010. INDEMNIFICATIONThe contractor or installer shall indemnify, defend, and hold the District, the District Manager, and the County in which the work will be performed, and their respective officers, officials, employees, agents and volunteers ("Indemnitees"), free and harmless from any and all causes of action, claims, liabilities, obligations, judgments or damages, including reasonable attorney’s fees and costs of litigation, arising out of the contractors performance of its obligations under any agreement with the District or out of the operations conducted by the contractor related to the District's sewer system, including the District's active or passive negligence, except for loss or damage arising from the sole negligence or willful misconduct of the District. In the event the District or other Indemnitee is made a party to any action, lawsuit, or other adversarial proceeding arising from the contractor's performance of the work, the contractor shall provide a defense to the District and Indemnitees or, at the District's option, reimburse the District or the Indemnitees their costs of defense, including reasonable attorney’s fees, incurred in defense of such claims.


RESOLUTION NO. 270

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BURBANK SANITARY DISTRICT CREATING THE POSITION OF THE DISTRICT CLERK AND DEFINING THE RESPONSIBILITIES OF THE POSITION

WHEREAS, the Burbank Sanitary District ("the District") is a special district operating

pursuant to Division 6, Part 1 Sanitary District Act of 1923, Sections 6400‐6830 of the California

Health and Safety Code; and

WHEREAS, the District would benefit from the creation of District Clerk position to assist

the Board of Directors with record keeping; and

WHEREAS, it shall be the duty of the District Clerk to attend meetings of the Board of

Directors, including closed sessions pursuant to California Government Code Section 54950 et

seq., and keep an accurate record of the proceedings of the District; and

WHEREAS, the District Clerk shall administer oaths or affirmations and take and certify

affidavits and depositions pertaining to District affairs and business which may be used in any

court or proceedings in the State; and

WHEREAS, the District Clerk shall keep a book marked “Ordinances” and record in it all

District ordinances with a certificate annexed to each stating:

1. It is a true and correct copy of a District ordinance;

2. The ordinance number;

3. It has been published or posted pursuant to law; and

WHEREAS, the District Clerk, before entering upon the duties of District Clerk, shall take

the oath of office provided for in the Constitution of the State of California; and

WHEREAS, the District Clerk will be an employee of the District and be compensated for

services to the District on a per meeting basis at the same rate as the Board member.


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

that the position of District Clerk be created and a person be appointed to that position by the

Board in accordance with the guidelines as outlined below:

The opening for the position shall be posted on the District website for a minimum of 30

days.

Board members will conduct an interview of candidate(s) either as a committee or at a

regular meeting of the Board.

Board may appoint and fill this position.

PASSED AND ADOPTED by the Board of Directors of the Burbank Sanitary District at a regular meeting held on the 20th day of November 2018, by the following vote:

AYES: Directors

NOES: None

ABSTAIN: None

ABSENT: None

_______________________________

President, Burbank Sanitary District

ATTEST:

Secretary, Burbank Sanitary District Ken Colson

APPROVED AS TO FORM:

_________________________________ District Counsel

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"

MEMORANDUM

DATE: November 16, 2018

TO: Board of Directors, Burbank Sanitary District

FROM: Benjamin Porter, District Manager-Engineer

RE: District Sewer Collection System Annual Maintenance

BACKGROUND: The Burbank Sanitary District’s (The District’s, BSD’s) sewer collection system is

now due for annual maintenance. The District’s sewer mainlines and laterals were last cleaned

in December 2017, performed by Roto‐Rooter. Staff requested cost proposals to perform hydro

flushing of approximately thirty thousand one hundred and forty‐five linear feet (30,145’) of

sewer mainline, in addition to one hundred and twenty‐six (126) sewer laterals within the District.

On November 13, 2018, the District received bids from Contractors for the above‐mentioned

work. ABJDD Plumbing proposal was the lowest bid with a quoted price of $28,918.25. The

proposed cost from each of the responding Contractors is provided in Table 1 below:

TABLE 1

RECOMMENDATION: Staff recommends Burbank Sanitary District Board of Directors authorize and approve the cost proposal from ABJDD for the Annual Maintenance Cleaning Service in the amount of $28,918.25. The budget line item for this work is $30,000.00 and the low bid is within the budget.

ATTACHMENT:

BID FORM.

Name of Contractor Amount

ABJDD Plumbing, Heating, Air Conditioning, Inc. $28,918.25

ABLE Septic Tank Service $36,420.00

Roto Rooter Service Company $48,434.71

1

INVITATION TO BID AND BID FORM Project: Mainline/Easement Hydro Flushing and Lateral Rodding Project District: BURBANK SANITARY DISTRICT C/O Mark Thomas & company, Inc 20863 STEVENS CREEK BLVD, STE 100 CUPERTINO, CA 95014 Date: 10/25/2018

CONTRACTOR ADDRESS PHONE EMAIL CONTACT ABLE Underground P.O Box 24819

San Jose, CA 95154 (408) 377-9990 [email protected] Glen Gilbert

Nor-Cal Pipeline Services

1459 Market Street Yuba City, CA 95992 (530) 673-7870 [email protected]

om Manny Badyal Chris Jaeger

Pacific Underground

1817 Stone Avenue San Jose, CA 95125

(408) 977-1655 [email protected]

Thad M Corbett

Pacific Plumbing & Underground Construction

329 Sango Court Milpitas, CA 95035 (408) 894-9120

[email protected]

Joseph Bechwati

Roto Rooter 356 Mathew Street Santa Clara, CA 95050 (408) 769-9205 [email protected]

om Jason Knieb

Cratus Inc. 945 Taraval Street #302 San Francisco, CA 94116 (415) 559-1325 [email protected]

om Michael Kirwan

ABB/JDD Inc

390 S. White Road, San Jose, CA 95127 (408) 251-1820 Dsouza@abjddplumb

ing.com Dave Souza

This request for bids is in compliance with District Ordinance 100, “Informal Bid Process” adopted pursuant to the authority of Article 3 of Chapter 2, Part 3, Division 2 (commencing with Section 22000) of the California Public Contract Code and constitutes an "informal bidding ordinance" as described in Section 22034 of said Code. Your firm is invited to submit a Bid under seal at the office of the Engineer to the attention of the BURBANK SANITARY DISTRICT (“District”). The contractor’s registration with the Burbank Sanitary District must be current. The District has the right to disqualify contractors who fail to renew their registration. If your firm is not currently registered, please contact the District for information. The District will receive Bids until 3:00 PM local standard time on November 13 , 2018

This project is a public works contract within the meaning of Part 7 (commencing with Section 1720) of Division 2 of the Labor Code of the State of California and the requirements of prevailing rate of wages apply to this contract. Pursuant to Section 1773 of the Labor Code, the general prevailing rate of wages in the county in which the work is to be done has been determined by the Director of the Department of Industrial Relations. Submit your Bid on the Bid Form provided.

mailto:[email protected]

mailto:[email protected]

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