1. Capital Improvement Program (CIP) Overview Nick Kanetis, P.E. June 14, 2013

2. OCSD Service Area 479square miles 210million gallons per day 2.5million population 21cities, 3 special districts 580miles of sewers 15pump stations 2treatment plants Service Area Los Angeles San Diego Orange County

3. Reclamation Plant No. 1 Fountain Valley Treatment Plant No. 2 Huntington Beach

4. Background EPA Consent Decree Secondary Treatment 2002 - 2012 Full Secondary December 2012 Future Renewal, Replacement and Rehabilitation

5. Strong Financial Position Revenues from user fees and connection fees Proactive forecasting and planning AAA Bond Rating

6. More than 70 ProjectsMore than 70 Projects $1.8 Billion Dollars invested in our Infrastructure

7. Secondary Treatment Expansion Six EPA Consent Decree Milestones Job No.MilestonesDue Date P1-76Construction Plant 1 Trickling Filters3-15-06 P1-102Advertise for Bid of Plant 1 AS System11-15-06 P2-90Advertise for Bid Plant 2 Trickling Filters1-15-07 P2-74Rehab of Plant 2 AS System1-15-09 P2-90Construction Plant 2 Trickling Filters2-15-11 P1-102Construction Plant 1 AS System11-15-12 Full compliance with permit12-31-12

8. Trickling Filters at Plant No. 2 Designer: Brown & Caldwell Contractor: J.F. Shea Construction Construction Cost: $182M - Capacity: 60 MGD

9. New Secondary Treatment at Plant No.1 Designer: Black & Veatch Contractor: Kiewit Infrastructure West Construction Cost: $207M – Capacity 60 MGD

10. Headworks at Plant No. 2 Odor Control System Demolition of Existing Headworks Designer: Carollo Eng. Contractor: J.F. Shea Construction Construction Cost: $196M - Capacity 340 MGD

11. Outfall Land Section & OOBS Piping Rehabilitation Designer: Black & Veatch Contractor: J.F. Shea Construction Construction Cost: $11.8

12. Central Generation Automation Designer: Black & Veatch Contractor: Morrow Meadows/Sachs Electric Construction Cost: $14.6M

13. Magnolia Trunk Sewer Rehabilitation Design/Build: Kiewit Infrastructure West Design/Build Cost: $15.5M

14. Sludge Dewatering & Odor Control at Plant No. 1 Exterior finishGround level Designer: HDR Eng. Contractor: W. M. Lyles Construction Cost: $127M

15. Pump Stations Rocky Point Pump Station Bitter Point Pump Station Designer: Malcolm Pirnie Contractor: Kiewit Inf. West Construction Cost: $9.2M Designer: Lee & Ro Contractor: Kiewit Inf. West Construction Cost: $20.2M

16. Increasing Level of Service 100% Secondary Standards 70 mgd Reclamation Increased System Reliability Lower engine emissions Less Odors Disinfection Treat Urban Runoff Fire & Safety Code Compliance

17. CIP Drivers Enhanced Planning Methodology Plant or Collection System Capacity Condition Of Assets Business Efficiency & Research Outcome Level of Service or Regulatory Change

18. CIP Drivers Enhanced Planning Methodology Plant or Collection System Capacity Condition Of Assets Business Efficiency & Research Outcome Level of Service or Regulatory Change

19. CIP Drivers Transition to Rehabilitation Before Cleaning After Cleaning Inspection Lining Failure

20. Future Focus Project Scope Development Resource Forecasting Risk Management Emphasis on Schedules Change Order Controls Outreach to Cities

21. FY 2013-14 CIP Expenditures $141 Million Mostly Rehabilitation

23. Upcoming Planned Projects Headworks Rehabilitation - $50 Million Outfall Pump Station Rehabilitation - $20 Million Primary Clarifier Rehabilitation - $120 Million Digesters Rehabilitation - $50 Million Digester Gas Facilities Rehabilitation - $40 Million Collections Rehabilitations - $100 Million Odor Control Master Planning - $20 Million Admin. Facilities Master Planning - $40 Million

24. Upcoming Newport Beach Projects

25. Upcoming Construction Bidding Next 2 Years (2013-2015) No. of Projects Construction Estimate Trunk / Collections7$ 57.0 M Treatment Plant12$ 108.4 M Total19$ 165.4 M

26. Upcoming Design Proposals Next 2 Years (2013-2015) No. of Projects Construction Estimate Trunk / Collections6$ 51.1 M Treatment Plant9$ 191.7 M Total17$ 242.8 M

28. Questions? www.ocsewers.com