C O N S E N T A G E N D A Upon motion of Director Zurita, duly seconded and unanimously carried, the Consent Agenda was approved as follows:

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1 MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 2 HELD AT THE OFFICE OF THE DISTRICT February 14, :30 o clock, P.M. The Board of Directors of County Sanitation District No. 2 of Los Angeles County met in regular session. There were present: Absent: Also present: Stephen Sham, Director from Alhambra Sally Ann Flowers, Director from Artesia Ali Saleh, Alternate Director from Bell Ray Dunton, Alternate Director from Bellflower Grace Hu, Director from Cerritos Ivan Altamirano, Alternate Director from Commerce Janna Zurita, Alternate Director from Compton Sean Ashton, Director from Downey Dee Andrews, Alternate Director from Long Beach Joe Buscaino, Alternate Director from Los Angeles City Jack Hadjinian, Alternate Director from Montebello Luigi Vernola, Director from Norwalk Peggy Lemons, Director from Paramount Juli Costanzo, Director from San Gabriel Maria Davila, Director from South Gate Melissa Ybarra, Director from Vernon Cathy Warner, Alternate Director from Whittier Kathryn Barger, Alternate Director from Los Angeles County David Armenta, Chairperson, Alternate Director from Pico Rivera Jose J. Mendoza, Director from Bell Gardens Stephen Lam, Director from Monterey Park Kimberly S. Compton, Secretary to the Board An announcement was made that this was the time for public comment. The Secretary called upon the following speaker: Mr. Earle Hartling, Recycling Coordinator, Technical Services Department, addressed the Board regarding employee negotiations. Written speaker notes were submitted to the Secretary and are attached as well as on file. C O N S E N T A G E N D A Upon motion of Director Zurita, duly seconded and unanimously carried, the Consent Agenda was approved as follows: RE: DIRECTOR FROM CITY OF ARTESIA A certificate from the City Clerk of the City of Artesia was presented to the Secretary stating that at a meeting of the City Council held January 16, 2018, Ms. Sally Flowers was elected Mayor of the City of Artesia, which is the designation of the presiding officer of the governing body of that city and automatically places Ms. Flowers on this Board, was accepted and ordered filed. RE: ALTERNATE DIRECTOR FROM CITY OF ARTESIA A copy of an action taken by the City Council of the City of Artesia at a meeting held January 16, 2018 was presented to the Secretary stating that Mr. Antonio Lima, a member of the City Council of the City of Artesia, was appointed to serve as alternate Director from the city, was accepted and ordered filed. DOC: District No. 2; Book 55; February 14, 2018; RM; Page 1 of 9

2 RE: ALTERNATE DIRECTOR FROM CITY OF DOWNEY District No. 2; Book 55; February 14, 2018; RM; Page 2 of 9 A copy of an action taken by the City Council of the City of Downey at a meeting held January 23, 2018 was presented to the Secretary stating that Mr. Rick Rodriguez, a member of the City Council of the City of Downey, was appointed to serve as alternate Director from the city, was accepted and ordered filed. RE: DIRECTOR FROM CITY OF MONTEBELLO A certificate from the City Clerk of the City of Montebello was presented to the Secretary stating that at a meeting of the City Council held December 13, 2017, Ms. Vanessa Delgado was elected Mayor of the City of Montebello, which is the designation of the presiding officer of the governing body of that city and automatically places Ms. Delgado on this Board, was accepted and ordered filed. RE: ALTERNATE DIRECTOR FROM CITY OF MONTEBELLO A copy of an action taken by the City Council of the City of Montebello at a meeting held December 13, 2017 was presented to the Secretary stating that Mr. Jack Hadjinian, a member of the City Council of the City of Montebello, was appointed to serve as alternate Director from the city, was accepted and ordered filed. RE: MINUTES RE: DISTRICT EXPENSES The minutes of the regular meeting held January 24, 2018, were approved. The following expenses for the month of November 2017 were presented and approved: Local District Expenses: Operations & Maintenance (O & M) $ 145, Capital 170, District No. 2 s Share of Allocated Wastewater Expenses for O & M and Capital: Joint Administration 320, Technical Support 468, Joint Outfall 1,743, Solid Waste System Expenses: Operations & Maintenance (O&M) 13,358, Allocated Expenses 784, Capital 2,677, Stormwater Expenses: Operations & Maintenance (O & M) 183, Total Expenses $19,851, Upon motion of Director Flowers, duly seconded and unanimously carried, the Board of Directors of County Sanitation District No. 2 of Los Angeles County requested the Consent Agenda item for the action to approve an invoice dated January 30, 2018, from Lewis Brisbois, Bisgaard & Smith LLP, in the amount of $188, for legal services rendered and reimbursement of expenses advanced in various Districts matters during the month of December 2017, be moved to the Regular Agenda. LONG BEACH WATER RECLAMATION PLANT - STAINLESS STEEL INLET GATES - AUTHORIZE ADVERTISING AND RECEIPT OF BIDS The Purchasing Agent was authorized to advertise and receive bids for stainless steel inlet gates for the Long Beach Water Reclamation Plant. Inlet gates are used at Long Beach Water Reclamation Plant to adjust flows to each of the primary sedimentation tanks and to isolate tanks as required for various maintenance activities. These iron inlet gates are approximately 40 years old and require replacement due to severe corrosion, which inhibits proper sealing and operation of the gates. This item is consistent with Districts Guiding Principles of commitment to operational excellence and to protection of facility assets through prudent maintenance programs. JOINT WATER POLLUTION CONTROL PLANT - OVERHAUL OF THREE-CELL BALTIMORE AIRCOIL COMPANY PRICHARD COOLING TOWER AUTHORIZE ADVERTISING AND RECEIPT OF BIDS The Purchasing Agent was authorized to advertise and receive bids for overhaul of the three-cell Baltimore Aircoil Company Prichard Cooling Tower at the Joint Water Pollution Control Plant (JWPCP). Three cryogenic oxygen plants provide oxygen for the Secondary Treatment Process at JWPCP. The three-cell cooling tower, which has been in service for more than 34 years, supports

3 operation of the cryogenic plants. Due to its poor condition, this equipment is in need of overhaul and repair. This item is consistent with the Districts Guiding Principles of operational excellence and to protection of facility assets through prudent investment. SAN JOSE CREEK WATER RECLAMATION PLANT INTERCEPTOR SEWER REHABILITATION PHASE 1 APPROVAL OF PLANS AND CALL FOR BIDS FOR CONSTRUCTION OF The proposed San Jose Creek Water Reclamation Plant Interceptor Sewer Rehabilitation Phase 1 project will consist of lining approximately 7,180 feet of 21-inch to 63-inch corroded concrete pipe constructed in The work is located within the Cities of El Monte and San Gabriel as shown on the map that was attached to the agenda. This item is consistent with Districts Guiding Principles of commitment to operational excellence and protection of facility assets through prudent maintenance programs. A recommendation was made to approve the plans for the San Jose Creek Water Reclamation Plant Interceptor Sewer Rehabilitation Phase 1 and authorize the Chief Engineer and General Manager to establish a date for the receipt of bids for construction of the work. The Board of Directors of County Sanitation District No. 2 of Los Angeles County found and determined that it will be to the interest and for the advantage of the District and that the public interest requires construction of the San Jose Creek Water Reclamation Plant Interceptor Sewer Rehabilitation Phase 1. The detailed plans and specifications for construction of the project were approved, adopted, and ordered filed; the Chief Engineer and General Manager was authorized to establish a date for receipt of bids for construction of the project; and the Secretary was authorized and instructed to advertise for bids for construction of the work, to publish the notices as required by law, and to receive, open, and tabulate bids at the District Office and thereafter to submit the bids to this Board for such action and disposition as the Board deems necessary and appropriate. RE: LEGAL SERVICES PAYMENT AND REIMBURSEMENT OF EXPENSES ADVANCED R E G U L A R A G E N D A A recommendation was made to approve an invoice dated January 30, 2018, from Lewis, Brisbois, Bisgaard & Smith LLP, in the amount of $188, for legal services rendered and reimbursement of expenses advanced in various Districts matters during the month of December Furthermore, a recommendation was made that the Chief Engineer and General Manager be authorized to have a warrant drawn in full payment of the invoice, the charges to be distributed to the affected Districts. Upon motion of Director Buscaino, duly seconded and unanimously carried, an invoice dated January 30, 2018, from Lewis, Brisbois, Bisgaard & Smith LLP, for legal services rendered and reimbursement of expenses advanced in various Districts matters during the month of December 2017, in the amount of $188, was approved. Furthermore, the Chief Engineer and General Manager was authorized to have a warrant drawn in full payment of the invoice, the charges to be distributed to the affected Districts. LONG BEACH WATER RECLAMATION PLANT CONCRETE AND PROTECTIVE LINING REPAIR PHASE II AWARD CONTRACT NO TO J.F. SHEA CONSTRUCTION, INC. ORDER THE SECRETARY TO EXECUTE The Long Beach Water Reclamation Plant Concrete and Protective Lining Repair Phase II project will repair corroded concrete surfaces and replace the protective plastic liner in the influent pump station wetwell and in the primary and secondary tank channels that has deteriorated due to corrosion. The project will also replace sludge piping that has deteriorated including valves and associated electrical power and control systems. This item is consistent with the Districts Guiding Principle of protecting facility assets through prudent maintenance programs. The bid summary/recommendation to award was attached to the agenda. The bids received at the District s office on December 14, 2017, for construction of the project are as follows: BIDDER TOTAL BID Shimmick Construction Company, Inc. $10,475, J.F. Shea Construction, Inc. $10,751,395.00* Environmental Construction, Inc. $10,928, *The bid of J.F. Sea Construction, Inc. was the lowest regular, responsible bid for the work. DOC: District No. 2; Book 55; February 14, 2018; RM; Page 3 of 9

4 The bid of J.F. Shea Construction, Inc., was the lowest responsive bid meeting District specifications received and J.F. Shea Construction, Inc., was the lowest, regular, responsible bidder for the work, and a recommendation was made to award a contract to J.F. Shea Construction, Inc., at the unit prices stated in its bid amounting to approximately $10,751,395. Furthermore, a recommendation was made to order the Secretary to review the surety bonds for performance and payment and, if sufficient, execute a contract with J.F. Shea Construction, Inc., for construction of the project. Upon motion of Director Andrews, duly seconded and unanimously carried, Contract No for construction of the Long Beach Water Reclamation Plant Concrete and Protective Lining Repair Phase II was awarded to the lowest, regular, responsible bidder, to wit: J.F. Shea Construction, Inc., at the unit prices stated in its bid amounting to approximately $10,751,395. Furthermore, the Board of Directors of County Sanitation No. 2 of Los Angeles County ordered the Secretary to review the surety bonds for performance and payment and, if sufficient, execute the contract with J.F. Shea Construction, Inc., for construction of the project. JOINT OUTFALL C UNIT 3A TRUNK SEWER REHABILITATION BETWEEN MANHOLES C67 AND C69 AWARD CONTRACT NO TO MLADEN BUNTICH CONSTRUCTION COMPANY, INC. ORDER THE SECRETARY TO EXECUTE The Joint Outfall C Unit 3A Trunk Sewer Rehabilitation Between Manholes C67 and C69 project consists of lining approximately 1,120 feet of existing 72-inch diameter corroded concrete sewer pipe built in The work is located within the City of Long Beach. This item is consistent with the Districts Guiding Principle of protecting facility assets through prudent maintenance programs. Bid summary/recommendation to award and map was attached to the agenda. The bids received at the District s office on January 30, 2018, for construction of the project are as follows: BIDDER TOTAL BID Mladen Buntich Construction Company, Inc. $2,027, Steve Bubalo Construction Co. $2,993, Colich & Sons, L.P. $3,378, J.R. Pipeline Co., Inc. $3,596, Spiniello Companies $5,098, The bid of Mladen Buntich Construction Company, Inc., was the lowest bid received and Mladen Buntich Construction Company, Inc., was the lowest, regular, responsible bidder for the work, and a recommendation was made to award a contract to Mladen Buntich Construction Company, Inc., at the unit prices stated in its bid amounting to approximately $2,027,601. Furthermore, a recommendation was made to order the Secretary to review the surety bonds for performance and payment and, if sufficient, execute a contract with Mladen Buntich Construction Company, Inc., for construction of the project. Upon motion of Director Zurita, duly seconded and unanimously carried, Contract No for construction of the Joint Outfall C Unit 3A Trunk Sewer Rehabilitation Between Manholes C67 and C69 was awarded to the lowest, regular, responsible bidder, to wit: Mladen Buntich Construction Company, Inc., at the unit prices stated in its bid amounting to approximately $2,027,601. Furthermore, the Board of Directors of County Sanitation No. 2 of Los Angeles County ordered the Secretary to review the surety bonds for performance and payment and, if sufficient, execute the contract with Mladen Buntich Construction Company, Inc., for construction of the project. DISTRICT 2 INTERCEPTOR TRUNK SEWER REHABILITATION - SURVEY SERVICES - AUTHORIZE ISSUANCE OF PURCHASE ORDER TO MTH2 ENGINEERING, INC. Survey services are required to support the design of the rehabilitation of approximately 9,900 feet of 48-inch to 63-inch diameter reinforced concrete pipe sewer. The District solicited proposals from seven qualified consulting firms and received two proposals. MTH2 Engineering, Inc., was found to be the lowest-cost qualified responsive bidder. This item is consistent with the Districts Guiding Principles of commitment to operational excellence and protection of facility assets through prudent maintenance programs. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to issue a purchase order to MTH2 Engineering, Inc., in the amount of approximately $51,332 for survey services for the District 2 Interceptor Trunk Sewer Rehabilitation. Upon motion of Director Warner, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to MTH2 Engineering, Inc., for survey services for the District 2 Interceptor Trunk Sewer Rehabilitation, at a cost of approximately $51,332. District No. 2; Book 55; February 14, 2018; RM; Page 4 of 9

5 POMONA WATER RECLAMATION PLANT - PROCESS AIR COMPRESSOR NO. 1 - AUTHORIZE ISSUANCE OF PURCHASE ORDER TO HOWDEN ROOTS, LLC The Process Air Compressor (PAC) provides process air for biological treatment which is critical for compliant WRP operation. PAC No. 1 is inoperable due to mechanical issues, leaving the Pomona Water Reclamation Plant s WRP without adequate redundancy. Howden Roots LLC, the original equipment manufacturer, has the expertise and facilities to disassemble, inspect, and rebuild the PAC equipment. This item is consistent with Districts Guiding Principles of commitment to operational excellence and fiscal responsibility. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to issue a purchase order to Howden Roots, LLC, in the amount of approximately $135,000 for diagnostic testing, rebuilding, field support and start-up services and transportation of the Pomona Water Reclamation Plant s Process Air Compressor No. 1. Upon motion of Director Warner, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to Howden Roots, LLC, for diagnostic testing, rebuilding, field support and start-up services and transportation of the Pomona Water Reclamation Plant s Process Air Compressor No. 1, at a cost of approximately $135,000. RE: JOINT ADMINISTRATION SELF-INSURED WORKERS COMPENSATION PROGRAM AUTHORIZE ISSUANCE OF PURCHASE ORDER TO ADMINSURE The Districts are self-insured for workers compensation liability with a third party administering the claims. The Districts entered into a three-year agreement with Admin- Sure effective March 1, 2014, with the option to renew the agreement for two subsequent one-year periods. The Districts desire to exercise the option to renew the Agreement for the final one-year period from March 1, 2018 through February 28, A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to issue a purchase order to AdminSure in the amount of approximately $174,840 to administer the Districts self-insured workers compensation program for one-year period. Upon motion of Director Warner, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to AdminSure to administer the Districts self-insured workers compensation program for one-year period, at a cost of approximately $174,840. RE: SOLID WASTE MANAGEMENT CALABASAS AND SCHOLL CANYON LANDFILLS - MOTOR SCRAPERS AUTHORIZE ISSUANCE OF PURCHASE ORDER TO EVANS EQUIPMENT, INC. AUTHORIZE DISPOSAL The purchase of two motor scrapers is required to replace equipment that is no longer cost-effective to maintain at the Calabasas and Scholl Canyon Landfills. Caterpillar equipment has been extensively used at Districts solid waste facilities and has proven to be reliable and cost-effective. The purchase of two similarly equipped new motor scrapers would cost approximately $3,600,000 with a lead time of 18-months. An extensive search for used equipment was conducted and Evans Equipment, Inc., had the only used equipment available that meets the Districts requirements. The price is considered fair market value. The proposed equipment has significantly lower emissions than the equipment being replaced. This item is consistent with the Districts Guiding Principle of commitment to fiscal responsibility and prudent financial stewardship. A recommendation was made to authorize the Chief Engineer and General Manager, in her capacity as Purchasing Agent, to issue a purchase order to Evans Equipment, Inc., in the amount of approximately $2,270,000 for two used Caterpillar 657G motor scrapers; and find that two existing Caterpillar 657E motor scrapers are no longer suitable for Districts purposes and authorize disposal. Upon motion of Director Warner, duly seconded and unanimously carried, the Purchasing Agent was authorized to issue a purchase order to Evans Equipment, Inc., for two used Caterpillar 657G motor scrapers at a cost of approximately $2,270,000; and found that two existing Caterpillar 657E motor scrapers are no longer suitable for Districts purposes and authorize disposal. RE: JOINT ADMINISTRATION The Board previously approved the purchase of the Oracle FINANCIAL PLANNING SOFTWARE Hyperion Planning software (Hyperion Planning) for the SUPPORT SERVICES - CONFIRM preparation of the Districts budgets. Although Hyperion PURCHASE ORDER TO APPLICATIONS Planning was implemented in 2017, a number of SOFTWARE TECHNOLOGY CORPORATION additional customizations were needed to make the program fully conform to the Districts business practices. This work needed to be undertaken immediately to ensure that statutory deadlines for implementing the Districts DOC: District No. 2; Book 55; February 14, 2018; RM; Page 5 of 9

6 revenue programs and for adopting final budgets can be met. Consequently, staff issued a purchase order to retain the services of Applications Software Technology Corporation prior to Board approval. This item is to confirm the action taken by staff and is consistent with the Districts Guiding Principles of commitment to fiscal responsibility and prudent financial stewardship and providing transparent communication to our Boards and the public. A recommendation was made for the Board to confirm the issuance of a purchase order to Applications Software Technology Corporation in the amount of approximately $170,000 for financial planning software support services. Upon motion of Director Zurita, duly seconded and unanimously carried, the Board confirmed the issuance of a purchase order to Applications Software Technology Corporation in the amount of $170,000 for financial planning software support services. RE: JOINT WATER POLLUTION CONTROL PLANT - WATER QUALITY LABORATORY CHROMATOGRAPH-ELECTRON CAPTURE DETECTOR CONFIRM PURCHASE ORDER TO AGILENT TECHNOLOGIES The gas chromatograph-electron capture detector (GC- ECD) laboratory equipment is used for regulatory compliance sample analysis. Bids were received on December 8, 2016, and a purchase order was issued to Agilent Technologies on January 18, Due to a clerical oversight, Board authority to award the order was not obtained prior to issuing the purchase order. This item is to confirm the action taken by staff. The bid summary/recommendation award was attached to the agenda. This item is consistent with the Districts Guiding Principle of fiscal responsibility and prudent financial stewardship. A recommendation was made for the Board to confirm the issuance of a purchase order to Agilent Technologies in the amount of $65, for the purchase of one gas chromatograph-electron capture detector for the Joint Water Pollution Control Plant Water Quality Laboratory. Upon motion of Director Zurita, duly seconded and unanimously carried, the Board confirmed the issuance of a purchase order to Agilent Technologies in the amount of $65, for one gas chromatographelectron capture detector for the Joint Water Pollution Control Plant Water Quality Laboratory. JOINT OUTFALL C UNIT 3D TRUNK SEWER - REPORT ON EMERGENCY REPAIRS - RECEIVE AND ORDER FILED A Report on Emergency Repairs was made pursuant to the Resolution Delegating to the Chief Engineer and General Manager Authority for Emergency Repair or Replacement of Deteriorated or Damaged Sewer previously adopted by the Board. A recent inspection of the Joint Outfall C Unit 3D Trunk Sewer located in the City of Long Beach, a 51-inch diameter reinforced concrete pipe constructed in 1949, revealed that the sewer is in poor condition. Due to the poor condition emergency repair efforts have been initiated. The emergency repair, consisting of a top encasement approximately 25 feet in length, is estimated to cost approximately $100,000 and is expected to be completed by early March A map of the location was attached to the agenda. Upon motion of Director Saleh, duly seconded and unanimously carried, the Board of Directors received and ordered filed the Report on Emergency Repairs of the Joint Outfall C Unit 3D Trunk Sewer. LONG BEACH MAIN PUMPING PLANT FACILITY UPGRADES - STEVE P. RADOS, INC. - CONTRACT NO APPROVE CHANGE ORDER NO. 45 EXTRA WORK AND EXTENSION OF TIME - ASSIGNMENT AND ASSUMPTION AGREEMENT PURCHASE AGREEMENT STEVE P. RADOS, INC. CONTRACT NO. 4779A - APPROVE Steve P. Rados, Inc., (contractor) incurred additional labor and material costs associated with the installation and startup of pumps that were supplied by Wilo USA, LLC, (Wilo) which had been pre-selected by the Districts for this project. The contractor has completed installation of the pumps; however, after extensive testing and modifications to the equipment, the pumps have yet to meet all of the Districts performance requirements. The proposed agreement allows the Districts to work directly with Wilo to resolve the issues with the pumps performance and releases the contractor from further responsibility. A recommendation was made to approve Change Order No. 45 for extra work under Contract No with Steve P. Rados, Inc., for the construction of the Long Beach Main Pumping Plant Facility Upgrades, resulting in a payment of $105,000 for extra work and a time extension of 162 working days for a beneficial use milestone, 112 working days for a successful operations milestone, and 92 working days for a contract completion milestone, since this work is necessary to meet the requirements of the District. The claim has been reviewed and the work determined to be beyond the scope of the plans and specifications. Furthermore, a recommendation was made to approve and order executed an Assignment and Assumption Agreement Purchase Agreement. District No. 2; Book 55; February 14, 2018; RM; Page 6 of 9

7 Upon motion of Director Warner, duly seconded and unanimously carried, Change Order No. 45 to Contract No with Steve P. Rados, Inc., for the construction of the Long Beach Main Pumping Plant Facility Upgrades, resulting in a payment of $105,000, was approved. Furthermore, an amendment to the contract entered into with Steve P. Rados, Inc., Contract No. 4779, dated June 16, 2013, providing for the Districts to work directly with Wilo USA, LLC, to resolve the issues with the pumps performance and releasing the contractor from further responsibility, as set forth therein, was approved. All the terms and conditions of the Assignment and Assumption Agreement Purchase Agreement, Contract No. 4779A, dated February 14, 2018, were accepted and approved, and the Chairperson and Secretary were authorized to execute the Amendment on behalf of the District. PURCHASE AND SALE AGREEMENT COUNTY OF LOS ANGELES CONTRACT NO APPROVE The Clearwater Program Master Facilities Plan, which was previously approved by the Board, includes construction of a new tunnel to convey treated wastewater effluent from the Joint Water Pollution Control Plant to the District s existing ocean outfalls at Royal Palms Beach on the Palos Verdes Peninsula. The new tunnel, with an estimated construction cost of approximately $700 million, will allow for the inspection of the existing tunnels, provide redundancy for critical wastewater infrastructure, ensure capacity for future growth, and convey peak storm flows. The proposed tunnel is 6.9 miles long. The tunnel alignment crosses under a portion of Royal Palms Beach property owned by the County of Los Angeles (County), as shown on the map that was attached to the agenda. The proposed Purchase and Sale Agreement (Agreement) provides for the County s sale and the District s purchase of the following property rights: permanent subsurface easements, portions of County property in fee, and temporary right of entry permits for construction. The County has agreed to convey these property rights for the negotiated price of approximately $135,157. A recommendation was made to approve and order executed an Agreement with the County of Los Angeles for the Joint Water Pollution Control Plant Effluent Outfall Tunnel Project at a cost of approximately $135,157, and authorize the Chief Engineer and General Manager to take all actions on behalf of the District required by the Agreement. Upon motion of Director Zurita, duly seconded and unanimously carried, the Board of Directors of County Sanitation District No. 2 of Los Angeles County found and determined that it would be to the advantage of the District to enter into a Purchase and Sale Agreement with County of Los Angeles providing for the County s sale and the District s purchase of the following property rights: permanent subsurface easements, portions of County property in fee, and temporary right of entry permits for construction, as set forth in the Agreement and under terms and conditions contained therein. All the terms and conditions of the Purchase and Sale Agreement, Contract No. 5084, dated February 14, 2018, were accepted and approved, and the Chairperson and Secretary were authorized to execute the Agreement on behalf of the District. RE: JOINT WATER POLLUTION CONTROL PLANT - EFFLUENT OUTFALL TUNNEL PROJECT - NOTICE OF INTENT TO CONSIDER ADOPTION OF RESOLUTION OF NECESSITY TO ACQUIRE EASEMENTS TARGET CORPORATION - AUTHORIZE CHIEF ENGINEER AND GENERAL MANAGER OR DESIGNEE The Clearwater Program Master Facilities Plan, which was previously approved by the Board, recommends construction of a new tunnel to convey treated wastewater effluent from the Joint Water Pollution Control Plant to the District s existing ocean outfalls at Royal Palms Beach on the Palos Verdes Peninsula. The tunnel alignment crosses under a portion of a parking lot owned by Target Corporation (Target). On April 12, 2017, the Board adopted Resolution No April D02 R-1 (the April 2017 Resolution), which authorized acquisition of the permanent subsurface easement and temporary construction easement (TCE) necessary to implement the Project via eminent domain. Since the time of the April 2017 Resolution, the District has amended and significantly reduced the scope of the TCE (the Amended TCE) that is necessary for the Notice of Intent to Consider Adoption of Amended Resolution of Necessity to Acquire Easement Necessary for Construction of Joint Water Pollution Control Plant Effluent Outfall Tunnel Project (Project) in order to limit the potential impacts to Target. The District obtained a fair market value appraisal of the Amended TCE and on December 22, 2017, extended a written compensation offer to Target to acquire the Amended TCE, which Target did not accept. It is recommended that the Board adopt an Amended Resolution of Necessity in order to supersede and replace in all respects the TCE set forth in the April 2017 Resolution. This Board authorization allows the District to notify the property owner that the District intends to hold a hearing to consider adopting an Amended Resolution of Necessity to acquire the Amended TCE necessary for construction of the Project. Negotiations to secure the Amended TCE will continue even if the Amended Resolution of Necessity is adopted. The Chief Engineer and General Manager stated that this item involves the District s dealings with Target Corporation regarding access for a subsurface easement, which will not affect their parking lot or building. The District has been pursuing permits and subsurface easements for the tunnel project DOC: District No. 2; Book 55; February 14, 2018; RM; Page 7 of 9

8 construction from various entities along the pipeline. Previously, the Board authorized initiation of litigation to obtain necessary property rights from Target through eminent domain, but since that time, design has been completed and the District must now amend the resolution of necessity to reflect a smaller area than originally stated in the previously adopted resolution. In response to Director Barger, the Chief Engineer and General Manager stated that access to the easement area was from below the surface and eminent domain for a temporary construction easement would only grant access during the construction of the project for installation of monitoring instruments. A recommendation was made to authorize the Chief Engineer and General Manager, or her designee, to give Target Corporation a Notice of Intent to Consider Adoption of Amended Resolution of Necessity to Acquire Easement Necessary for Construction of Joint Water Pollution Control Plant Effluent Outfall Tunnel Project. Upon motion of Director Zurita, duly seconded and unanimously carried, the Board authorized the Chief Engineer and General Manager, or her designee, to give Target Corporation a Notice of Intent to Consider Adoption of Amended Resolution of Necessity to Acquire Easement Necessary for Construction of Joint Water Pollution Control Plant Effluent Outfall Tunnel Project. RE: ADOPT BANKING RESOLUTION AND CERTIFICATE OF INCUMBENCY SANITATION DISTRICT NO. 2 OF LOS ANGELES COUNTY AND BANK OF AMERICA A proposed Resolution of The Board of Directors of County Sanitation District No. 2 of Los Angeles County Adopting a Banking Resolution and Certificate of Incumbency in Connection with Deposit Account and Treasury Management Services at Bank of America, N.A., (Resolution) was presented. The Districts have, for many years, used Bank of America to perform a variety of general banking services. In connection with the Districts recent appointment of the new Chief Accountant, Bank of America has required District No. 2, as the administrative district for the Districts, to adopt a banking resolution and delegate signature authority to certain District staff who will oversee the day-to-day treasury operations of the Districts. The Chief Engineer and General Manager, by prior authority granted by the Boards of Directors, serves as Fiscal Officer and Treasurer of the Districts. Under the proposed resolution, the District s Treasurer, Financial Management Department Head, and Chief Accountant would each be authorized to open and close accounts, enter into treasury management agreements and transactions with the bank, and designate additional staff to act on behalf of the Districts with respect to treasury management services. This item is consistent with the Districts Guiding Principle of fiscal responsibility and prudent financial stewardship. A recommendation was made to adopt the Resolution. A copy of the proposed Resolution was attached to the agenda. Upon motion of Director Warner, duly seconded and unanimously carried, the following Resolution was adopted: RESOLUTION OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 2 OF LOS ANGELES COUNTY ADOPTING A BANKING RESOLUTION AND CERTIFICATE OF INCUMBENCY IN CONNECTION WITH DEPOSIT ACCOUNT AND TREASURY MANAGEMENT SERVICES AT BANK OF AMERICA, N.A. The Board of Directors of County Sanitation District No. 2 of Los Angeles County resolves as follows: 1. Any individual (each an Authorized Signer ) with any of the following titles: Treasurer Financial Management Department Head Chief Accountant is authorized, acting alone, including by electronic signature, electronic record or other electronic form, (a) to establish accounts from time to time for County Sanitation District No. 2 of Los Angeles County ( District ) at Bank of America, N.A. (the Bank ), as well as to operate and close such accounts, (b) to enter into any and all agreements and transactions contemplated by the provision of treasury management services by the Bank, including but not limited to Electronic Funds Transfer Services, and District No. 2; Book 55; February 14, 2018; RM; Page 8 of 9

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