1. CSA 7 – Boulder Creek

2. YOUR SANITATION FACILITY

3. Facility Includes the Following Five Pump Stations –Total of 10 pumps 16,553 feet of collection lines 4,415 feet of force main Leach field Treatment Plant –2 Blowers –Clarifier/Sedimentation Tank –Equalization Tank –Wastewater Filtration system –Sand Filter System

5. Options for CSA7

6. May 6, 2003 Board Meeting Due to objections to raising rates, rates were not increased for fiscal year ‘03/04. This resulted in CSA7 not having sufficient funds to operate, maintain and repair the sewer system to RWQCB standards. Requested by Board of Supervisor’s to report back with alternatives for operation of CSA7 Includes private Billing and Operation and Maintenance Reported back to Board in November with a proposed Billing contract and a Request for Proposals (RFP) for Operation of the system

7. CHOICES Private billing and private operation of system with no County involvement Private billing with County operation of system Bill on Tax roll with County operation of system

8. CONTRACT FOR BILLING Bi-monthly billing included with water bill Sewer service will no longer be billed on tax roll

9. RFP FOR OPERATIONS Sent RFP to 6 Companies and Advertised Two Responded –ECO Resources declined to submit a proposal due to the remote location of facility –California American Water (Cal-Am) submitted a proposal –Cal-Am’s proposal is contingent upon needed capital improvements being completed –County wants same capital improvements be completed to stop spills and eliminate threat of fines from Regional Water Quality Control Board

10. ESTIMATED COST OF NEEDED CAPITAL IMPROVEMENTS Force Main Replacement : $800,000 Control Panel Replacements: $15,000 Replace Standby Generators: $25,000 Effluent Filter Rehab: $20,000 Equalization Tank Repair/Replacement $80,000 Rebuild Pump Station 5: $100,000 TOTAL ESTIMATED COST=$1,000,000+

11. WHY FUND CAPITAL IMPROVEMENTS State Water Board is threatening fines of up to $700K due to spills in CSA7 State will not negotiate in lieu of fine for fixing the problem Infrastructure is old and needs to be fixed now If infrastructure is not maintained, eventually State will not only fine the CSA but issue a cease and desist order to stop the use of the sewer system.

12. Cost of Loan $1Million @5% over 30years Approximately $25/month/parcel or Single payment w/out loan Approximately $3800 per parcel

13. How To Pay for Capital Improvements? Assessment District –Property owners submit petition w/over 60% support –Fund hiring bond counsel, engineer & bond underwriter through CSA –Board adopts resolution of intention –Engineer develops cost estimate & cost/parcel –Goes to vote –If approved, construct project –After 30 years assessment ends Pay for Capital Improvements without Assessment District –County increases annual fees to pay for CIP over time assuming can get loan for CSA 7 –Property owners pay one time fee of $3,800 per parcel for Capital Improvements to be completed

14. OTHER $ SAVING ISSUES In winter, storm flow is entering sewer system and overloading treatment plant In order to prevent spills, hauling wastewater from plant which costs $$$ Will video sewer lines and smoke test to find source of stormwater entering system Homeowners with storm drains tied to sewer will be required to stop this practice Less stormwater in system will reduce the cost to treat effluent, including the cost to haul

15. RESULTS OF FLOW STUDY

16. FEE STRUCTURE Fees for services need to be restructured in order to be in proportion to the cost of service for each customer classification: Single Family Dwelling(SFD), Condominiums (Condos) and Commercial Hired Consultant to Look at water use for SFD’s and Condos for all CSA’s Winter Month Flows are Industry Standard for Sewer Use Base Fees on Average Use for Each Residential Category (SFD, Condo). Business is metered.

18. Proposed 2004/2005 Budget