Fairfield -Suisun Sewer District - FSSD · 2018-01-19 · continued communication throughout the year was one of the biggest contributors to its success. Additionally, no modifications,

Fairfield-Suisun Sewer District 1010 Ch ad bourne Ro a d • Fairf ield, Calif orn ia 94 534 • (70 7) 4 29 -8 930 • www.f ssd.com

Gregory G. Ba atrup, G eneral M an ager

The Fairfield-Suisun Sewer District will provide reasonable disability-related modification or accommodation to a person with a disability who requires a modification or accommodation in order to participate in the meeting of the Board of Directors. Please contact us at (707) 429-8930 at least 48 hours before the meeting if you require such modification or accommodation.

Documents that are disclosable public records required to be made available under California Government Code Section 54957.5 (b) (1) and (2) are available to the public for inspection at no charge during business hours at our administrative offices located at the above address.

Members of the public may speak on any matter within the jurisdiction of the Fairfield-Suisun Sewer District by filling out a speaker’s request card, available on the table adjacent to the entrance to the board meeting room, and submitting the card to the District Clerk. Comments not listed on the agenda will be taken under Public Comments. Comments on matters appearing on the agenda will be taken during consideration of the item.

Teleconference Notice: Director Jane Day will be participating from a teleconference location at 301 Morgan Street, Suisun City, CA 94585.

Board of Directors Meeting Agenda

Meeting Date: Monday, January 22, 2018

Meeting Place: 1010 Chadbourne Road Fairfield, California

Meeting Time: 6:00 p.m. 1. Roll Call 2. Pledge of Allegiance 3. Public Comments 4. Board Comments 5. General Manager Report 6. Consent Calendar Page

(a) Approve Minutes of Meeting of November 27, 2017........................................................ 2 (b) Adopt Resolution No.2018-01, Rescinding the previous Conflict of Interest Codes and

adopting a new Conflict of Interest Code .......................................................................... 5 7. Action Items

(a) Adopt Resolution No.2018-02, Supporting Legislative Changes to Fairfield-Suisun Sewer District Act ............................................................................................................ 10

(b) Adopt Resolution No.2018-03, Congratulating Mrs. Christina Harshell on the occasion of her retirement ................................................................................................ 33

(c) Adopt Resolution No.2018-04, Congratulating Mr. Gary Harder on the occasion of his retirement ................................................................................................................... 34

8. Presentation/Discussion Items (a) Receive report on Wastewater Collection System Master Plan Update .......................... 35

9. Information Items (a) Quarterly Investment Report ........................................................................................... 37 (b) Board Calendar ................................................................................................................ 81

-- End of Agenda --

Board of Directors Michael Segala, President

Harry price, Vice President

Pam Bertani

Jane Day

Mike Hudson

Catherine Moy

Pete Sanchez

Chuck Timm

Rick Vaccaro

Lori Wilson

http://www.fssd.com/

Fairfield-Suisun Sewer District minutes

1 0 1 0 C h a d b o u r n e R o a d F a i r f i e l d , C A T e l e p h o n e ( 7 0 7 ) 4 2 9 - 8 9 3 0 w w w . f s s d . c o m

Date: November 27, 2017 Meeting Place: 1010 Chadbourne Road, Fairfield, California Meeting Time: 6:00 p.m. 1. Roll Call - The meeting was called to order with the following members present: Directors

Hudson, Wilson (arrived at 6:05 p.m.), Timm, Bertani, Day (by teleconference), Vaccaro, and Sanchez (by teleconference; arrived at 6:04 p.m.), Price, and Segala. Director Moy was absent.

2. Pledge of Allegiance was led by Lystek General Manager, Jim Dunbar.

3. Public Comments - (See item 7a) 4. Board Comments - Director Hudson noted his recent attendance at the NACWA Utility

Leadership Committee Meeting. Additionally all of the Directors hope everyone has a happy holiday season.

5. General Manager Report - General Manager Baatrup stated that two District employees,

Raymona Shirmard, O&M Tech 2, and Richard Sponholz, Safety Officer, received awards from the California Water Environment Association (CWEA), Redwood Empire Section. Mrs. Shirmard, was awarded as Laboratory Person of the Year, and Mr. Sponholz received the Redwood Sections’ Stan Roskowski award for his volunteer work in the safety field, particularly for his efforts as CWEA Safety Committee Chair over the past few years.

6. Consent Calendar

(a) Minutes of Meeting of October 23, 2017 (b) Approve Resolution No.2017-10, Establishing the Regular Meeting Schedule for 2018

Upon motion by Director Timm, seconded by Director Vaccaro, the Consent Calendar items were approved by the following roll call vote: AYES: Hudson, Wilson, Timm, Bertani, Day, Vaccaro, Sanchez, Price, and Segala. NOES: None ABSENT: Moy

7. Action/ Discussion Items By recommendation of General Manager Baatrup, and consensus of the Board, item 7b, was moved before item 7a.

(a) Receive Independent Auditors Report for Fiscal Year 2016/17

Helen Gaumann, Director of Finance and Administrative Services, gave a brief presentation on the District’s financial highlights over the past two fiscal years. Before concluding Ms. Gaumann added that the District continues to have success audits due to the diligence and

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Minutes November 27, 2017 Page 2

hard work from the Finance Department (Olivia Ruiz, Senior Accountant and Carina Bejarano, Finance Technician). Sheldon Chavan from Chavan and Associates, LLP then reported on the auditors’ findings and notified the Board of accounting standards that will become effective in the coming years. Mr. Chavan stated the audit went very well and the District was issued an “unqualified opinion.” He went on to say that the Finance staff’s continued communication throughout the year was one of the biggest contributors to its success. Additionally, no modifications, significant deficiencies or material weaknesses were made.

Mr. George Guynn (Suisun City) commented on the District’s financial report and recent audit.

(b) Blower Replacement Project (2016) Contracts

i. Adopt Resolution No.2017-11, Accepting the Bid and Awarding the Construction Services Contract to C. Overaa & Co. in the amount of $8,873,000

ii. Adopt Resolution No.2017-12, Authorizing a Professional Services Contract for Design Services during construction with Carollo Engineers in the amount of $649,814

iii. Adopt Resolution No.2017-13, Authorizing a Professional Services Agreement for PLC/SCADA Programming Services during construction with TelStar Inc. in the amount of $92,844

Hamid Sarvi, Senior Environmental Engineer, gave a presentation on the next phase (construction) of the Blower Replacement Project (2016) and then answered questions from the Board. Upon motion by Director Timm motioned to approve all three Resolutions, seconded by Director Wilson, Resolution No.2017-11 (Accepting the Bid and Awarding the Construction Services Contract to C. Overaa & Co. in the amount of $8,873,000), Resolution No.2017-12 (Authorizing a Professional Services Contract for Design Services during construction with Carollo Engineers in the amount of $649,814), and Resolution No.2017-13 (Authorizing a Professional Services Agreement for PLC/SCADA Programming Services during construction with TelStar Inc. in the amount of $92,844) were approved/adopted by the following roll call vote: AYES: Hudson, Wilson, Timm, Bertani, Day, Vaccaro, Sanchez, Price, and Segala. NOES: None ABSENT: Moy

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Minutes November 27, 2017 Page 3 8. Information Items

(a) Board Calendar - No comments

The meeting adjourned at 7:09 p.m.

Respectfully submitted, __________________________ President ATTEST: ________________________ District Clerk

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January 15, 2018 LE-240/18

MEMORANDUM

TO: Board of Directors

FROM: Greg Baatrup, General Manager

SUBJECT: Update to Conflict of Interest Code

Recommendation: Adopt Resolution No.2018-01, approving the updated Conflict of Interest Code.

Discussion: The District’s Conflict of Interest Code needs to be updated to reflect District position titles. This is a routine update to keep the District’s “Designated Filers” portion of the Code current and accurate. No other changes are recommended to the Code.

Attachments: #1 – Resolution No.2018-01 #2 – Updated Conflict of Interest Code

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FAIRFIELD-SUISUN SEWER DISTRICT RESOLUTION 2018-01

A RESOLUTION RESCINDING PREVIOUS CONFLICT OF INTEREST CODES AND ADOPTING A NEW CONFLICT OF INTEREST CODE

WHEREAS, the California Political Reform Act (“Act”), located at Government Code section 81000 et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes; and

WHEREAS, Fairfield-Suisun Sewer District (“District”) most recently amended its Conflict of Interest on March 28th 2016; and

WHEREAS, the employee organizational structure has changed which requires an amendment to the Conflict of Interest Code.

NOW, THEREFORE, BE IT RESOLVED that the attached Conflict of Interest Code along with the Designated Positions and Disclosure Categories set forth in Exhibit A for the District is adopted and supersedes all previous versions.

BE IT FURTHER RESOLVED that a copy of this Resolution and the Conflict of Interest Code shall be transmitted to the Solano County Board of Supervisors as the code reviewing body for District.

PASSED AND ADOPTED this 22nd day of January 2018, by the following vote:

AYES: Directors

NOES: Directors

ABSENT: Directors

__________________________________ President

Attest: District Clerk

Attachment #1

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CONFLICT OF INTEREST CODE FOR THE

FAIRFIELD-SUISUN SEWER DISTRICT (“FSSD”)

The Political Reform Act, Government Code Section 81000, et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations, Section 18730, which contains the terms of a standard conflict of interest code. It can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations, Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are incorporated by reference and, along with the attached Exhibit A in which members and employees are designated and disclosure categories are set forth, constitute the conflict of interest code of the agency named above.

Designated employees, board members and officers shall file statements of economic interests with the Agency Clerk, the Agency’s filing officer, who will make the statements available for public inspection and reproduction (pursuant to Government Code section 81008). Upon receipt of the statements of those positions designated in Government Code section 87200, the Agency Clerk shall make and retain a copy and forward the original of these statements to the Solano County Elections Department, Attention: Statement of Economic Interests Filing Officer. Statements for all other designated employees will be retained by the agency.

Adopted: February 23, 1997 Amended: February 27, 2012 Amended: March 28, 2016

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Attachment #2

EXHIBIT “A”

DESIGNATED POSITIONS Position Disclosure Category

District Director 1 through 3

Assistant General Manager 1 through 3

Assistant Maintenance Manager 1 through 3

Director of Administrative Services 1 through 3

Director of Engineering 1 through 3

Director of Operations & Maintenance 1 through 3

District Counsel 1 through 3

Engineering Inspector/Technician 1 through 3

Environmental Engineer 1 through 3

Environmental Compliance Engineer 1 through 3

General Manager 1 through 3

GIS Coordinator 1 through 3

Laboratory Manager 1 through 3

Maintenance Manager 1 through 3

Maintenance Supervisor 1 through 3

Operations & Maintenance Coordinator 1 through 3

Operations Manager 1 through 3

Operations Supervisor 1 through 3

Safety Officer 1 through 3

Senior Environmental Engineer 1 through 3

Consultants** 1 through 3

**As defined by 2 CCR 18700 et seq., who would be required to file financial statements pursuant to Government Code § 87302.

DISCLOSURE CATEGORIES Category 1: Interests in real property located within the cities of Fairfield or Suisun City that would

otherwise be required to be disclosed on the FPPC’s Statement of Economic Interests, Form 700.

Category 2: Income, including loans, gifts or investments, aggregating $250 or more in value during

the reporting period, received from any source that manufactures or sells services and/or supplies of the type annually purchased or utilized by District and of which the annual

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purchases by the District exceeds $1,000 or if the business entity or source of income is in the construction or building industry within the cities of Fairfield or Suisun City, any of which would otherwise be required to be disclosed on the FPPC’s Statement of Economic Interests, Form 700

Category 3: Investments, income, interests, loans, business position and commissions from or in

business entities or such other source, which entity or source is regulated by the District, directly or indirectly, through its various programs, including but not limited to, its industrial waste discharge program. This category is not intended to require disclosure of a business entity or other source which is regulated by the District solely by virtue of a discharge to the sewer system, when such provision of sewer services is on the same terms as all other persons or entities in the same category and the District’s services are provided ministerially without the use of any substantial discretion by the District, its employees or officials concerning the same.

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January 11, 2018 LE-200.10 MEMORANDUM TO: Board of Directors FROM: Greg Baatrup, General Manager SUBJECT: Legislative Changes to the Fairfield-Suisun Sewer District Act Recommendation: Adopt Resolution No.2018-02 (included as Exhibit 5), supporting legislative changes to the Fairfield-Suisun Sewer District Act. Background: The Fairfield-Suisun Sewer District Act (also referenced as the Enabling Act) approved by the California Legislature in 1951, created the Fairfield-Suisun Sewer District to perform wastewater collection and treatment, and water recycling services for all property within the boundaries of Fairfield, Suisun City and Travis Air Force Base. The act prescribes the District boundaries, change of boundaries, organization, operation, management, financing and powers. For various reasons, sections of the Enabling Act have been modified (8 times), since its approval in 1951, the latest being in the statutes of 2002. In the statutes of 2002, the Enabling Act was amended to; a) allow service outside District boundaries to properties connected prior to 2002, and b) allow future connections outside the boundaries pursuant to California Government Code §56133. Government Code §56133 allows the Local Agency Formation Commission (LAFCO) to authorize the extension of District services outside its jurisdictional boundary and outside its sphere of influence to respond to an existing or impending threat to the health or safety of the public or the residents of the affected territory, if both of the following requirements are met:

(1) The entity applying for approval has provided the commission with documentation of a threat to the health and safety of the public or the affected residents.

(2) The commission has notified any alternate service provider, including any water corporation as defined in Section 241 of the Public Utilities Code that has filed a map and a statement of its service capabilities with the commission.

In 2003 and again in 2004, several properties (highlighted in Exhibit 1) in the vicinity of Rockville Road and Suisun Valley Road were approved to be served in an agreement between the District and Solano County.

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Legislative Changes to the FSSD Act Memo January 18, 2018 Page 2 of 3 2018 Proposed Changes In 2018, additional areas are seeking wastewater service from the District. The additional areas are in the “Rockville Corners” area, as noted on Exhibit 1, (a subset of these properties is covered in the 2003 and 2004 agreement described above) and the “Middle Green Valley Specific Plan” area, as noted on Exhibit 2. The property owners for the Rockville Corners and Middle Green Valley Specific Plan Areas have been working on legislative changes to the Enabling Act that would allow these specific plan areas to receive service from the District. The letter from Amanda Monochamp of Holland & Knight, representing these property owners, (included as Exhibit 3) provides additional information about the legislative changes to grant them service. Additionally, it describes the planning and other considerations for the development of these properties. These two areas have been planned in the County General Plan and Specific Plans where it is contemplated these would be served by the District through an amendment of the 2003 Out-of-Boundary Service Agreement between the District and the County. This is discussed more in the 2017 LAFCO Municipal Service Review, the Middle Green Valley Specific Plan and associated environmental documents. Capacity of District System to accommodate future areas The District has prepared and periodically updates its master plans to plan for capacity upgrades to its facilities. The parcels within Rockville Corners area that were approved for service in 2003 and 2004 were included in the District’s master plans. The other parcels in the proposed Rockville Corners area and the proposed Middle Green Valley Specific Plan area have not been analyzed. Therefore, these proposed additional areas will need to be added to the master planning. This strategy is consistent with the District planning strategy where service to annexed areas is analyzed to understand the impacts for the new annexed area, and corresponding improvements to offset the impact. The analysis also includes estimated costs and implementation schedules. The District facilities, as currently planned and constructed, are not the ultimate facilities to serve the build-out of the respective City’s General Plans. Future facilities are planned and constructed incrementally to efficiently and effectively accommodate changing service area needs. The changes may occur due to 1) either by expanding boundaries implemented by annexations or through Out-of-Boundary service agreements, 2) changing densities through rezoning processes, or 3) customer use patterns such as water conservation measures that can affect capacity without affecting the District’s boundaries. These service area needs are analyzed, and facilities are identified to serve these needs in master planning studies and implemented as needed. These master plans are updated periodically (every 5 to 10 years) based on activity in the community. Additional facilities identified in the master plans are then added to capital improvements, budgeted and implemented. Summary of Changes The District is being asked to support the legislative changes allowing the Rockville Corners and Middle Green Valley Specific Plan areas to be served. Concurrent with this legislation, staff

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Legislative Changes to the FSSD Act Memo January 18, 2018 Page 3 of 3 proposes to revise the Enabling Act to reflect current governance practices, as well as other administrative changes. A redline version is included as Exhibit 4, showing the recommended changes. Each of the proposed changes is summarized below: A. Language Proposed to the State Legislature by the property owners in the Middle Green

Valley Specific Plan area and the Rockville Corners area as discussed in the January 18, 2018 Holland & Knight letter.

1. Section 18 (b) - Eliminate statement that the City means the District. Insert the definition of the area known as the Middle Green Valley Specific Plan area.

2. Section 18 (c) - Eliminate statement that the Clerk, City Clerk, …, means the Clerk of the District. Clerk is defined in Section 17. Insert the definition of the area known as the Rockville Corners area.

B. Changes proposed by staff and District Counsel to bring the FSSD act up to date.

1. Changes to reflect the structure and operation of the District, eliminating outdated language that refers to City functions when the City served as ex officio of the District and where those functions are not applicable or have been assumed by the District.

2. Changes to update other government code sections.

C. Although the current language does not expressly prohibit the District from treating organic waste, Section 18(h) and Section 48(e) are added to declare the District’s right to process organic materials.

Attachments: Exhibit 1- Map of Rockville Corners Area

Exhibit 2- Map of Middle Green Valley Specific Plan Area Exhibit 3- Letter from Amanda Monochamp of Holland & Knight Exhibit 4- Proposed changes to Fairfield-Suisun Sewer District Act Exhibit 5- Resolution No. 2018-02

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0027030070

0027200150

0027120030

0153170220

0027160010

00272000600027200200

0027190060

0027190010

0027200230

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0090

0027170070

00272100200027210120

0153180040

0027210110

0027141110

00271800200027180030

00271411300027141200

0027141070

h:/../GB_ExtendedService.mxd Last Updated: 1/10/2018

CITY OF FAIRFIELD

Rockville Corners Area

ROCKVILLE CEMETERY

** As authorized by the 2003 & 2004 Agreement between FSSD and Solano County

Legend** Parcel connected to FSSD Sewer Service Area** Parcel eligible for sewer connectionParcel proposed to be eligibleFairfield City Limit Line

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Exhibit 1

2.4.4 SPECIAL STUDY AREA OWNERSHIPThe Middle Green Valley SSA is comprised of over 80 separate parcels and over 15 separate landowners, refer to Figure 2-7 Ownership Map. This Specifi c Plan is the culmination of bringing together this group of landowners as well as members of the larger Green Valley community to craft an equitable consensus plan and transfer of development rights program (TDR). This Specifi c Plan describes the specifi c agreed upon implementation, unit distribution and design initiatives that refl ect the conclusions and recommendations of this group as summarized in Section 2.5. See Section 4.2.3 for the transfer of development rights program and unit distribution.

June 2010

northScale: 1”= 400’

0 400 800 1600’0 400 800 1600’

10 acres

5 acres

1 ac

Gr e

en

Va

l l ey

Ro

ad

S t u d y A r e a B o u n d a r y

H i d d e n M e a d o w s

E a s t r i d g e

U p p e r G r e e nV a l l e y

M a s o n R o a d

G r e e n V a l l e yC o u n t r y C l u b

R o c k v i l l e R o a d

Te rmin

a l Rese r v

o i r Road

S t u d y A r e a B o u n d a r y

De Leu Drive

Mange l s

Bl v

d .

D E D O M E N I C O

R AG S DA L EM A S O N

H AG E R

B & L P RO P E RT I E S( RU S S O )

B I G G S

D E L C A S T I L L O

VO L K H A R D T

W I L E Y

M A H E R

B AY L I N K F U E L

S E RV I C E

B & L P RO P E RT I E S

( RU S S O )

R AG S DA L E

B I G G S

W I RT H

E x i s t i n gS u b d i v i s i o n

E x i s t i n gS u b d i v i s i o nE x i s t i n g

S u b d i v i s i o n

PA R E N T I

Vintage Lane

S I E B E

E N G E L L

S I E B E

B & L P RO P E RT I E S

( WA L L E R )

M A S O N /L AW TO NT RU S T

E A S T E R

L E M A S T E R S

June 2010

0 400 800 1600’

LEGEND

a. Existing Subdivision

b. Engell 52.26 ac

c. Biggs* 61.61 ac

d. Wirth/Siebe/Parenti 95.42 ac

e. Wiley 15.55 ac

f. B+L Properties (Russo) 235.70 ac

g. B+L Properties (Waller) 17.33 ac

h. Maher 146.75 ac

i. Ragsdale 168.56 ac

j. Mason 295.95 ac

k. Mason/Lawton Trust 476.09 ac

l. Del Castillo 82.41 ac

m. Dedomenico 40.56 ac

n. Hager 40.20 ac

o. Volkhardt 35.24 ac

* Property east of Green Valley Road has an approved tentativemap on fi le with Solano County for 6 new lots. These lots areincluded in the maximum 400 unit count for this Specifi c Plan.

2-11M I D D L E G R E E N VA L L E Y: S P E C I F I C P L A N

Figure 2-7: Ownership Map

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Exhibit 2

50 California Street, Suite 2800 | San Francisco, CA 94111 | T 415.743.6900 | F 415.743.6910 Holland & Knight LLP | www.hklaw.com

Amanda J. Monchamp (415) [email protected]

January 5, 2018

Greg Baatrup Fairfield-Suisun Sewer District 1010 Chadbourne Rd. Fairfield, Ca 94534

Re: Request for Additional Amendments to the Fairfield Suisun Sewer District Enabling Act Regarding Rockville Corners and Middle Green Valley Specific Plan Areas

Dear Mr. Baatrup,

I write on behalf of property owners in the Rockville Corners and Middle Green Valley Specific Plan Areas. We have been working with State representatives on potential legislative changes to the Fairfield-Suisun Sewer District Act Chapter 303, Statues of 1951 as amended in 1997 and 2001 and as approved by the California Legislature (“FSSD Act”) that would allow the Fairfield Suisun Sewer District (“FSSD” or “District”) to serve the areas within the Rockville Corners and Middle Green Valley Specific Plan Areas. The proposed language is presented below. The purpose of this letter is to seek the District’s support and inquire whether there are any amendments the District would like to also propose to the FSSD Act.

BACKGROUND

The proposed legislation would modify the District’s authority to specifically allow it to serve areas within the Rockville Corners and Middle Green Valley areas of unincorporated Solano County (the “County”). These areas are outside the City of Fairfield Urban Limit Line but are either (i) undeveloped land designated for residential densities above one unit per acre, or (ii) developed land with failing septic systems. These areas are also planned for growth in theCounty’s General Plan, and contemplated for extraterrestrial service in the District’s FinalWastewater Services Municipal Service Review prepared in 2017. Based on our priorconversations, it is our understanding that the District has adequate wastewater treatmentcapacity to serve these areas.

Rockville Corners Area

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Exhibit 3

2 | P a g e

The purpose of this change is to allow the County to develop land consistent with its General Plan in a manner that is protective of human health and the environment. In 2008, the County updated its General Plan, and that General Plan was approved by County voters as Measure T. As part of this update, the County changed the land use designation for the undeveloped areas in the Rockville Corners Area to Traditional Residential Community (1-4 dwelling units per acre). Also the Traditional Residential Community land use designation includes areas where existing development was built at higher densities or intensities than currently allowed under the County’s development standards with respect to sewer services. Infill residential development is permitted in this designation at densities up to 4 dwelling units per acres. Thus, providing sewer service to this area is consistent with the General Plan.

Rockville Cemetery

Another purpose would be to allow the District to serve the Rockville Cemetery, a public cemetery funded solely through state taxes, that itself has a history of a failing sewer system. An existing FSSD mainline runs up Suisun Valley Road and provides availability of a mainline sewer system to these parcels. As a public cemetery, the FSSD Act allows for the Rockville Cemetery to be served by the District subject to a determination by LAFCO under Govt. Code section 56133; however, this legislation would facilitate the ability of the Cemetery to connect immediately if the current septic system were to fail again.

Middle Green Valley Specific Plan

In 2017, the County approved the Middle Green Valley Specific Plan, a specific plan area that was designated in the 2008 General Plan. The County plans for this Specific Plan area to include up to 400 new primary residential units, agricultural tourism, local neighborhood retail and community facility uses and over 1,490 acres of protected agriculture and open space. Residential densities within the Middle Green Valley Specific Plan area range from 1-8 dwelling units per acre.

The Specific Plan and the environmental analysis accompanying it, specifically considered FSSD’s provision of sewer service. There is an existing unused sewer connection that was constructed specifically for the purpose of adding the residences in Middle Green Valley to the District when Green Valley Road was re-constructed years ago.

2017 Municipal Service Review

The Final Wastewater Services Municipal Service Review (“MSR”) prepared for the Solano LAFCO in February 2017 identifies both the Rockville Corners area and Middle Green Valley Specific Plan as areas of interest for provision of wastewater services. However, the MSR identified potential legal constraints associated with the provision of extra-territorial services. This proposed boundary change via legislation would allow for anticipated development and associated sewer service in a manner that is consistent with the General Plan and the District’s MSR.

Public Health Hazard

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3 | P a g e

It has been long known that septic systems in these areas often function improperly, due to a combination of existing soil conditions and poor drainage, and are creating a public health hazard. In general, the U.S. Environmental Protection Agency has recognized that failing septic systems can be a significant source of ground water contamination that can lead to waterborne disease outbreaks and other adverse health effects. The bacteria, protozoa, and viruses found in sanitary wastewater can cause numerous diseases, including gastrointestinal illness, cholera hepatitis A, and typhoid.

The County recognizes the importance of preventing groundwater contamination from septic systems. Section 6.4-20 of the County’s Code requires connection to a public sewer system for all proposed lots, new development, additions, or remodels that propose to generate wastewater, and for existing structures requiring repairs to the septic system if sewer is available. Moreover, the County limits the minimum size of parcels that may use septic systems to 5 acres if that parcel also has a groundwater well, and 2.5 acres if water is supplied to the parcel. (See County Code § 26-82). All of the parcels in these areas are either planned for or are already developed at densities that exceed the County’s limitations on septic systems. Therefore, none of the undeveloped areas within these areas could be developed as planned for in the General Plan.

Constraint on Annexation under Measure L and the Protection of Agricultural Land Through Middle Green Valley Specific Plan

Although the Rockville Corners and Middle Green Valley Specific Plan areas are both adjacent to the City of Fairfield, it is outside the City’s Urban Limit Line. In 2003, the City of Fairfield voters adopted Measure L as a local initiative measure by Fairfield voters that reaffirmed the following language as Land Use Policy LU 3.1 of the City of Fairfield's General Plan:

What is urban shall be municipal, and what is rural shall be within the County. Any urban development requiring basic municipal services shall occur only within the incorporated City and within the urban limit line established by the General Plan.

Under Measure L, the Urban Limit Line depicted in the City of Fairfield's General Plan represents the probable physical boundary and service area of the City through the year 2020. The City of Fairfield’s policy is that no lands outside the City's Urban Limit Line will be designated as a potential annexation area. Measure L provides that any amendment to the Urban Limit Line must be approved by the voters of the City of Fairfield. Therefore, in order to annex property into the City so that it was included within the District’s boundaries, the voters of Fairfield must approve a revision to the Urban Limit Line. Therefore, these areas cannot be annexed by the City of Fairfield absent a vote by the residents of the City of Fairfield.

While Measure L arguably prevents the City of Fairfield from providing basic municipal services outside its Urban Limit Line, it has no bearing on whether the District can provide such services. The purpose of Measure L is to minimize premature conversion of rural agricultural lands, and to maintain a greenbelt of open space buffer between Fairfield and the other cities of Solano County. These areas include properties that are either already developed, ones that are directly adjacent the Rockville Corners commercial area, or surrounded by other existing residential development, or within Middle Green Valley Specific Plan. The Middle Green Valley

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4 | P a g e

Specific Plan works to recognize and enable a rural settlement pattern of varying intensities, uses and opportunities that honors the agricultural legacy of the land and its fundamental purpose is to protect agricultural land. A core component of the plan is the promotion of sustainable food and agriculture systems as a means to synergize the relationships between agricultural lands, the built and natural environments, community health and natural resource stewardship. To accomplish this, the Specific Plan includes the creation of the Green Valley Agricultural Conservancy, a non-profit organization that will manage and oversee the approximately 1,490 acres of productive agricultural land, pastures, and natural areas placed under conservations easements. The Conservancy will be funded by development transfer fees and will conserve in perpetuity a productive agricultural operation and conservation easements that will provide a framework for educational, interpretive opportunities.

Releases from private septic systems could result in untreated sewage impacting productive use of agricultural land with bacterial pathogens such as salmonella. The provision of municipal wastewater service to Middle Green Valley will therefore help protect these agricultural lands from both short and long-term negative impacts of failing septic systems.

The landowners in these areas are jointly making this request because both areas are in similar stages of planning. The need for certainty regarding provision of wastewater services has become an impediment to progress. To the extent that FSSD may need to address other issues related to modernizing and expanding service, we welcome discussing those ideas.

PROPOSED LEGISLATIVE AMENDMENT

Below are the revisions we propose to the FSSD Act:

Section 18.

b. “Middle Green Valley Specific Plan” means all property included within the Middle Green Valley Specific Plan adopted by the Board of Supervisors.

c. “Rockville Corners” mean those properties located in the Rockville Corners area with the following Assessor Parcel Numbers: 27-030-07; 27-120-03; 27-130-02, -03, -04, -05, -06; 27-141-07, -11, 13, -20, -21, -24, -26, -28, -30, -37, 39; 27-142-07; 27-150-01, 02, 03; 27-160-01, -02; 27-170-01, -04, -05, -07, -08, -09, -10, -11; 27-180-02, -03, -04, -05, -06, -07, -08, -09, -11; 27-190-01. -03, -04, -06, -10, -11; 27-200-06,-15, -16, -19, -20, -21, -23; 27-210-02, -10, -11, -12; 153-170-22; 153-180-01, -02, -03, -04, -06, -08, -09, -10, -11, -12, or as such parcels may be subdivided.

Section 48

b. The district may shall, upon request, accept and contract for the disposal of sewage emanating from buildings outside the district if those buildings are connected to the district's sewage treatment system on March 1, 2002 or from any building within the Middle Green Valley Specific Plan and certain designated areas in Rockville Corners.

c. Except as provided in subdivision (b) above, Pursuant to Section 56133 of the Government Code, the district may, pursuant to Section 56133 of the Government Code, contract

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5 | P a g e

with Solano County or another pubic entity for the disposal of sewage emanating from buildings outside the district if the board of the district determines that the contract furthers the protection of public health and safety and is in the best interests of the district.

We respectfully request the support of FSSD for these amendments and look forward to coordinating with you on any additional FSSD legislative modifications.

Sincerely,

/s/

Amanda J. Monchamp

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CHAPTER 303 State of California Statutes of 1951

The Fairfield-Suisun Sewer District Act, as last amended September 2002

An act relating to the financing, construction, maintenance and operation of sanitary sewerage and storm drainage systems for the Cities of Fairfield and Suisun City and for certain areas in Solano County, creating the Fairfield-Suisun Sewer District and prescribing its boundaries, change of boundaries, organization, operation, management, financing and powers, declaring the urgency thereof, to take effect immediately.

[Approved by Governor May 5, 1951 Filed with Secretary of State May 5.1951.]

The people of the State of California do enact as follows:

Article 1. General Provisions

SECTION 1. The Fairfield-Suisun Sewer District is hereby created to consist of the territory in Solano County now contained within the Cities of Fairfield and Suisun City, and within the County Service Area as defined below in Section 19. Any territory hereafter annexed to either city shall be a part of the district upon annexation. No property shall automatically become a part of the district unless it is a part of either the City of Fairfield or the City of Suisun City.

Sec. 2. This act shall be known and may be cited as “Fairfield-Suisun Sewer District Act.”

Sec. 3. If any provision of this act, or the application thereof to any person or circumstance, is held invalid, the remainder of this act, or the application of such provision to other persons or circumstances, shall not be affected thereby.

Article 2. Definitions

Sec. 10. Unless the context otherwise requires, the provisions of this article shall govern the construction of this act.

Sec. 11. “District” means the Fairfield-Suisun Sewer District.

Sec. 12. “Board” means the board of directors of the district.

Sec. 13. “Cities” refers to the Cities of Fairfield and Suisun City.

Sec. 14. “Charges” includes fees, tolls, rates and rentals.

Sec. 15. “County” means the County of Solano.

Sec. 16. “Board of supervisors” means the Board of Supervisors of the County of Solano.

Sec. 17. “Clerk” means the clerk of the district.

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Exhibit 4

Sec. 18. In the application to the district of laws, the procedure of which is made applicable to proceedings of the district, the terms used in those laws shall have the following meanings:

(a) “City council,” “council,” and “legislative body” mean the board

(b) “City,” “municipality” and “local agency” mean the district, “Green Valley Specific Plan” means all property included within the Middle Green Valley Specific Plan adopted by the Board of Supervisors

(c) “Clerk” and “city clerk” mean the clerk of the district. “Rockville Corners” mean those properties located in the Rockville Corners area with the following Assessor Parcel Numbers: 27-030-07; 27-120-03; 27-130-02, -03, -04, -05, -06; 27-141-07, -11, 13, -20, -21, -24, -26, -28, -30, -37, 39; 27-142-07; 27-150-01, 02, 03; 27-160-01; 27-170-01, -04, -05, -07, -08, -09, -10, -11; 27-180-02, -03, -04, -06, -07, -08, -09, -11; 27-190-01. -03, -04, -06, -10, -11; 27-200-06, -15, -16, -19, -20, -21, -23; 27-210-02, -10, -11, -12; 153-170-22; 153-180-01, -02, -03, -04, -06, -08, -09, -10, -11, -12, or as such parcels may be subdivided.

(d) “Superintendent of streets,” “street superintendent,” and “city engineer” mean the engineer of the district or any other person appointed to perform those duties. The person performing those duties shall be called the district engineer.

(e) “Tax collector” means either the county tax collector or anotherthe person designated as the tax collector by the board.

(f) “Treasurer” and “city treasurer” means either the County Treasurer of the County of Solano or another person designated as the treasurer by the board.

(g) “Auditor” and “city auditor” means either the County Auditor of the County of Solano or another person or entity designated as the auditor by the board.

(h) “Organic materials” means material that is organic in nature, such as plant material, food and beverage waste, and paper products, which can be recycled using treatment processes such as composting, digestion or other processes to decompose the organic matter. Gas produced from the process can be captured and used for generating electricity and heat.

Article 3. General Administrative Provisions

Sec. 25. The district shall be governed by a board of directors of 10 members who shall be ex officio, all members of the city councils of the Ccities.

Sec. 26. A quorum for the transaction of business shall consist of any six members of the board. No action shall be taken without the affirmative vote of at least six members.

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Sec. 27. At its first meeting, and thereafter at the first meeting following such election of councilmen for the cities, tThe board shall choose one of its members as president and elect other officers in accordance with Board policy.

Sec. 28. At its first meeting, or as soon thereafter as may be practicable, the board shall appoint a clerk, who may be a city clerk. He shall serve at the pleasure of the board and his compensation shall be fixed by it.

Sec. 29. All contracts, deeds, warrants, releases, receipts, and documents shall be signed in the name of the district by the president and countersigned by the clerkin accordance with Board policy.

Sec. 30. (a) Subject to subdivision (b), each board member shall receive one hundred dollars($100) for each day of his or her actual attendance of the meetings of the board and of committees of the board, and for each day's service otherwise rendered as a board member by request of the board, not exceeding a total of six days in any calendar month.

(b) The board may, by ordinance, increase the compensation received by boardmembers above one hundred dollars ($100) a day, provided that the increase shall not exceed an amount equal to 5 percent of the compensation which is received when the ordinance is adopted, for each calendar year following the operative date of the last increase.

Sec. 31. Each board member shall be reimbursed for actual expenses incurred in the conduct of district business.

Sec. 32. The board may, in its discretion, establish a district treasury and appoint a district treasurer to serve at the pleasure of the district board.

Sec. 33. All district elections other than bond elections shall be conducted in accordance with the election laws applicable to general law cities.

Sec. 34. The board may require any employee or officer to be bonded. The district shall pay the cost of the bonds.All county officers shall be liable upon their several official bonds for the faithful discharge of the duties imposed upon them by this act.

Article 4. Powers

Sec.40. The district may adopt and use a seal which shall be alterable at the pleasure of the board.

Sec. 41. The district may sue and be sued.

Sec. 42. The district may acquire, construct, reconstruct, alter, enlarge, lay, repair, renew, replace, replace, maintain, and operate such sewers, drains, septic tanks, and sewage collection, outfall, treatment works, and other sanitary disposal systems, and storm water, storm water collection, outfall, and disposal systems, and water reclamation and distribution systems, within or without the district, as in the judgment of the board shall be necessary and proper.

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Sec. 43. The district may take, acquire, hold, use and dispose of property of every kind within or without the district necessary, expedient, or advantageous to the full exercise and economic enjoyment of its purposes and powers.

Sec. 44. The district may exercise the right of eminent domain to acquire any property necessary to carry out any of the objects or purposes of the district.

Sec. 45. The district may make and accept contracts, deeds, releases and documents that, in the judgment of the board, are necessary or proper in the exercise of any of the powers of the district.

Sec. 46. The district may cooperate and contract with the United States, or any agency thereof, with the State, or any political subdivision thereof, or with either of the Ccities or other state agency for the joint acquisition, construction or use or aid in the construction of any facilities which the district may be empowered to construct under this act, including assignment to the district of any subventions of either of the Ccities.

Sec. 47. All existing contracts of either of the Ccities relating to the collection and disposal of sewage may be assumed by the district.

Sec 48. (a) Except as otherwise provided in subdivisions (b), and (c), and (d), the district may not accept or contract for the disposal of any sewage emanating from outside the district except sewage from any public buildings or buildings of a public utility subject to regulation by the Public Utilities Commission.

(b) The district may shall, upon request, accept and contract for the disposal of sewageemanating from buildings outside the district if those buildings are connected to the district's sewage treatment system on March 1, 2002 or from any building within the County Service AreaMiddle Green Valley Specific Plan and Rockville Corners.

(c) Except as provided in subdivision (b) above, Pursuant to Section 56133 of theGovernment Code, Ttthe district may, pursuant to Section 56133 of the Government Code, contract with Solano County or another pubic entity for the disposal of sewage emanating from buildings outside the district if the board of the district determines that the contract furthers the protection of public health and safety and/or is in the best interests of the district.

(d) Every user that is connected to the district's sewage treatment system is subject tothe district's ordinances, resolutions, and other laws.

(e) The district may accept organic materials originating from within or outside thedistrict, as in the judgment of the board is in the best interests of the district.

Sec. 49. The district may borrow money and provide for its repayment without regard to any limitation by reason of any budget law or otherwise.

Sec. 50. The district may guarantee the performance of any of its transactions, including the payment of local improvement bonds issued pursuant to any general law, without regard to any limitation by reason of any budget law or otherwise.

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Sec. 51. The district may refund or retire any public indebtedness or lien that may exist or be created against the district or any property therein which shall have arisen out of the transaction of the affairs of the district.

Sec. 52. The district may incur indebtedness and issue bonds in the manner herein provided.

Sec. 53. The district may issue warrants in payment of district obligations. When not paid for want of funds, the warrants shall be registerable as provided in the Government Code for registration of city warrants when not paid for want of funds. Claims for money or damages against the district are governed by Part 3 (commencing with Section 900) and Part 4 (commencing with Section 940) of Division 3.6 of Title 1 of the Government Code, except as provided therein. Claims not governed by those statutes, other statutes, ordinances, or regulations, and expressly applicable to those claims, shall be prepared and presented to the governing body, and all claims shall be audited and paid, in the same manner and with the same effect as are similar claims against a general law city. All claims shall be free of the limitation of any budget law.

Sec. 54. The district may cause special assessments to be levied and collected on the basis of benefit to the properties assessed for the purpose of financing the acquisition and construction of local improvements. If all or any portion of such assessment remains unpaid, the district may issue bonds, not in excess of the amount of the assessment remaining unpaid, secured by the assessment.

Sec. 55. The district may appoint, employ, and fix the compensation of such engineers, attorneys, assistants and other employees as it deems proper.

Sec. 56. The district may sell contract for the purchase and/or sale of any effluent resulting from the operation of any sewage treatment plant as in the judgment of the board shall be necessary and proper and is in the best interests of the districtconstructed by or for the district. Sections 6520.7 and 6520.9 of the Health and Safety code are applicable to the district.

Sec. 57. The district may obtain insurance in such form and in such amounts as the board may deem necessary for the adequate protection of the district's property, officers, employees and interests.

Sec. 59. The district may adopt all necessary and proper regulations for all sanitary purposes not in conflict with the laws of this State. Any person who violates any regulation of the district is guilty of a misdemeanor. A regulation of the board shall be adopted by ordinance and shall be posted for one week in three public places in each of the citiespublished pursuant to Section 6061 of the Government Code in a newspaper of general circulation and shall take effect upon expiration of the week of such postingpublication. A subsequent finding of the board, entered in its minutes, that posting publication has been made is conclusive evidence that the posting publication has been properly made.

Sec. 60. The district may compel all residents and property owners in the district within the Cities to connect their houses and habitations and structures requiring sewage or drainage disposal service with the sewer and storm drains in streets.

Sec. 61. The district may prescribe, revise and collect charges for services and facilities furnished by it.

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Sec. 62. The district may contract with the cities for the collection of charges for any sewer enterprise or service together with and not separately from the charges for any other utility service rendered by the district or the cities, and that all charges shall be billed upon the same bill and collected as one item. If all or any part of the any bill is not paid, the district or either of the cities may discontinue its utility service until the said bill is paid. Such contract shall provide for the payment of a reasonable collection charge to the city involved.

Sec. 63. The district may require that its charges be payable in advance. In case any charges remain unpaid at the time specified for fixing the tax rate of the district, if the property is owned, controlled, or in the possession of the same person who owned, controlled, or was in possession of it during the time the charges were incurred, or if the only transfers were made of the property since the date the charges were incurred, have been transfers by gift, descent, bequest, or devise, the amount due to the charges may be collected at the same time and in the same manner as annual taxes levied against the land served by the district facilities. The charges shall constitute a lien on the land. If the taxes are divided and made payable in two installments, the unpaid charges may be added to, arid become a part of, the first installment. The board shall include in the statement of tax rate transmitted to the county auditor the amount of the charges to be levied against the land served, and the county auditor shall include the charges in the tax bills, Alternatively, charges, tor any services and facilities which the district is authorized to provide and for which it is authorized to collect charges, may be collected in the manner provided by Section 5473 of the Health and Safety Code in accordance with the procedures set forth in other applicable provisions of Article 4 (commencing with Section 5470) of Chapter 6 of Division 5 of the Health and Safety Code.

Sec. 64. The district, directly or through a representative, may attend the Legislature and any committees thereof and present information to aid the passage of legislation which the board deems beneficial or to prevent the passage of legislation which the board deems detrimental to the district. Expenses incident thereto are proper charges against the district.

Sec. 65. The district may enter in associations. Through a representative of the associations, it may also attend the Legislature to accomplish the purposes outlined in the next preceding section.

Sec. 66. All contracts for the construction of any unit of work shall be governed by Sections 22032 to 22039, inclusive, contained in Article 3 (commencing with Section 21200) of Chapter 2 of Part 3 of Division 2 of the Public Contract Code.

Article 5. General Obligation Bonds

Sec. 80. The district may issue bonds as provided in this article.

Sec. 81. The district may issue bonds for any of the purposes stated in Sections 42 and 51 of this act.

Sec. 82. When in its judgment it is advisable, the board may, and, upon a petition of 10 percent of the registered voters residing in the district shall, adopt a resolution calling an election to submit to the voters of the district within the Cities the question whether bonds shall be issued.

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Sec. 83. The resolution calling the election may submit as one proposal the question of issuing bonds to make all of the outlays or so many of them as may be selected, or the resolution may submit at the election as separate questions the issuance of bonds for any of the outlays singly or in combination.

Sec. 84. Notice of bond elections shall be given by posting notices, signed by the clerk of the board, in three public places in the district, not less than 20 days before the election, and by publishing the notice not less than once a week for three successive weeks before the election in a newspaper printed and published in the district, if there is one, and if not, in a newspaper printed and published in the county.

Sec. 85. The notice shall contain:

(a) Time and place of holding the election.

(b) The names of the officers of election appointed to conduct it.

(c) The hours during the day in which the polls will be open.

(d) A statement of the purpose for which the election is held.

(e) The amount and denomination of the proposed bonds, the rate of interest and thenumber of years, the whole or any of the bonds are to run.

Sec. 86. The vote shall be by ballot, without reference to the general law in regard to the form of ballot.

The ballot shall contain the words “Bonds—Yes” and “Bonds—No,” and the person voting at the election shall put a cross (-0 upon his ballot after the “Yes” or “No,” to indicate whether he has voted for or against the bonds.

Sec. 87. After the votes have been announced the ballots shall be sealed and delivered to the clerk or president of the board, which board shall on the seventh day after the election, at 8 o'clock p.m., meet and canvass them and enter the returns in its minutes.

The entry is conclusive evidence of the fact and regularity all prior proceedings and of the facts stated in the entry. No informality shall affect the validity of said bonds.

Sec.88. Except as herein provided, the election shall be conducted as nearly as practicable in accordance with laws relating to general elections.

Sec. 89. If, at the election, a majority of the votes cast are in favor of the issuance of bonds, the board may issue and dispose of the bonds as proposed in the resolution calling the election.

Sec. 90. Bonds issued by the district under this article shall be in the denominations determined by the board.

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Sec. 91. The bonds shall be payable in lawful money of the United States at the office of the treasurer and bear interest at the rate determined by the board but not to exceed the amount specified in Section 53531 of the Government Code.

Sec. 92. No bonds shall be payable in installments, but each shall be payable in full on the date specified therein by the board. The board may provide that all bonds issued by the district may be subject to retirement at any time prior to maturity.

Sec. 93. Each bond shall be signed by the president and countersigned by the clerk.

Sec. 94. The bonds shall be numbered consecutively, beginning with number one, and shall have coupons attached referring to the number of the bond.

Sec. 95. The bonds shall be disposed of by the board in such manner and in such quantities as may be determined by it in its discretion. No bond may be disposed of for less than its face value.

Sec. 96. The term of bonds issued shall not exceed 40 years.

Sec. 97. The board may in its discretion, before issuance commence in the superior court of the county, a special proceeding to determine its right to issue the bonds and their validity, similar to the proceeding in relation to irrigation district bonds, provided for by Division 11 of the Water Code, and its provisions apply to and govern the proceedings to be commenced by the board, so far as applicable. The judgment has the same effect as a judgment in relation to irrigation district bonds under the provisions of Division 11 of the Water Code. The board may use the same procedure to validate the creation of the district and any annexations thereto.

Sec. 98. An issue of bonds is hereby defined to be the aggregate principal amount of all of the bonds authorized to be issued in accordance with a proposal submitted to and approved by the electors of the district, but no indebtedness will be deemed to have been contracted until bonds shall have been sold and delivered and then only to the extent of the principal amount of bonds so sold and delivered.

Sec. 99. The board may, in its discretion, divide the aggregate principal amount of such issue into two or more divisions or series and fix different dates for the bonds of each separate division or series. In the event any authorized issue is divided into two or more divisions or series, the bonds of each division or series may be made payable at such time or times as may be fixed by the board separate and distinct from the time or times of payment of bonds of any other division or series of the same issue.

Article 6. Revenue Bonds

Sec. 105. Proceedings for the authorization, issuance, sale, security, and payment of revenue bonds of the district shall be conducted in substantial accordance with and with like legal effect as is now or hereafter provided in the Sanitation, Sewer and Water Revenue Bond Law of 1941.

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Sec. 106. The board shall have and exercise for the district the powers and duties of local agencies under the said law, and the bondholders shall have the rights and remedies therein provided.

Sec. 107. The board may guarantee the payment of any part of the principal and interest of said bonds which are not paid for want of sufficient revenues of the enterprise. For that purpose it may pledge all revenues of the district, including tax revenues.

Article 7. Assessment Bonds

Sec. 110. The Municipal Improvement Act of 1913, the Improvement Act of 1911, the Street Opening Act of 1903 and the Improvement Bond Act of 1915 are applicable to the district.

Sec. 111. In its resolution of intention adopted pursuant to any of the acts mentioned in Section 110, the board may determine and declare that bonds will be issued and paid, and the assessments therefor levied, collected and augmented in accordance with the applicable provisions of Sections 14, 15, 16. 17, 20, 21, 22, 24, 25, 26, 27, and 28 of the Refunding Assessment Bond Act of 1935, as now or hereafter provided, in which case the applicable provisions of said act are incorporated herein and made a part hereof by reference. Appropriate changes shall be made in the form of the bond to show that it is for a public improvement or acquisition under this act.

The list of unpaid assessments shall be filed, noticed, heard, and the bonds ordered issued, interest shall accrue from the date, the assessments thereafter paid before maturity, bonds called, premium paid, and illegal assessments and bonds reassessed, all as provided in the Improvement Bond Act of 1915. The bond shall be entitled “Improvement Bond.” The provisions for payment of the bond before maturity, as contained in the bond form in the Improvement Bond Act of 1915, shall be inserted in the place of the similar provision in said refunding bond form. There shall also be inserted in the bond form after the title of the refunding act the words “as modified in the Fairfield-Suisun Sewer District Act.”

Sec. 112. The improvements authorized to be constructed or acquired by this article are restricted to those permitted to be constructed or acquired by the district under Article 4 of this act.

Sec. 113. Notwithstanding the provisions of any act to the contrary, it shall not be necessary to obtain the consent of either of the cities to conduct assessment proceedings. It shall only be necessary to record the assessment in the office of the district engineer and in the office of the county' surveyor or county engineer of the county. No assessment or bond hereafter levied or issued shall become a lien and no person shall be deemed to have notice thereof until a certified copy of said assessment and the diagram thereto attached shall be recorded in the office of the district engineer and in the office of the county' surveyor or county engineer of the county'.

Sec. 114. Division 4 of the Streets and Highways Code shall not apply to proceedings under this act.

Article 8. Finances and Taxation

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Sec. 120. The lien for taxes for the first fiscal year after the district is formed shall attach on the first Monday in March or on the date the district is created, whichever is later.

Sec. 121. Annually, at least 15 days before the first day of the month in which the board of supervisors is required by law to levy the amount of taxes required by law for county purposes, the board shall furnish to the board of supervisors a written statement of the following:

1. The amount necessary to pay the interest on bonds for that year, and the portion ofthe principal that is to become due before the time for making the next general tax levy.

2. The amount necessary to maintain, operate, extend, or repair any work orimprovements of the district, and to defray ail other expenses incidental to the exercise of any of the district powers or to pay any existing obligations of the district.

Sec. 122. The board of supervisors shall at the time and in the manner of levying other county taxes, levy and cause to be collected a tax upon the taxable property in the district, based upon the last equalized assessment roll of the county, sufficient to pay the amounts set forth in the statement of the board.

Sec. 123. If the board fails to furnish the written statement, the board of supervisors shall ascertain the amount necessary to pay the interest on the bonds for that year and the portion of the principal mat is to become due before the proceeds of the next general tax levy shall become available, and shall levy and cause to be collected the amount.

Sec. 124. The tax shall be collected at the same time and in the same manner as the general tax levy for county purposes, and when collected shall be paid into the county treasury of Solano County to the credit of the proper district fund, as provided in Article 9 hereof. The board shall control and order its expenditure.

Sec. 125. The tax is a lien on all property within the district and of the same force and effect as other liens for taxes, and its collection may be enforced by the same means as provided for the enforcement of liens for state and county taxes.

Sec. 126. The principal and interest on district bonds shall be paid by the treasurer in the manner now or hereafter provided by law for the payment of principal and interest on the bonds of the county.

Sec. 127. Compensation to the county for the performance of services described in this article is hereby fixed at one-half of 1 percent of all money collected for the district.

Sec. 128. Sections 54900 to 54903, inclusive, of the Government Code shall not apply to the district.

Article 9. Funds

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Sec. 150. There is created in the treasury of either of the cities, or the County, or of the district, as determined by the board, a fund entitled the “Fairfield-Suisun Sewer District General Fund.”

Sec. 151. The proceeds of the sale of revenue bonds or general obligation bonds or proceeds of special assessments levied by the board shall be deposited with the treasurer and shall be by him placed in the fund to be called the “Fairfield-Suisun Sewer District Construction Fund No._____.” (inserting number)

Sec. 152. The money in any construction fund shall be used for the purpose indicated in the resolution calling the election upon the question of the issuance of bonds, or for the purpose described in the resolution of intention in the assessment proceedings, or for repayment of money borrowed for the purpose of financing the improvement for which bonds were subsequently issued, or the assessment levied, and for no other purpose, except that any money in the construction fund determined by resolution of the board to be in excess of the amounts required for completion of the improvement authorized may, by the resolution so determining, be transferred to any other fund of the district and be used for any lawful purpose.

Sec. 153. There is created, at the discretion of the board, in the district treasury or in the treasury of either city or the County a fund called the “Fairfield-Suisun Sewer District Bond Fund, Series ______,” (inserting series number) in which the treasurer shall keep money levied by the board for that fund.

Sec. 154. No part of the money in the bond fund may be transferred to any other fund or be used for any purpose other than the payment of principal and interest of the bonds of the district, or for repayment of money borrowed for the purpose of paying the principal and interest of the bonds of the district, until said bonds are fully paid, at which time it may be transferred to any other fund.

Sec. 155. The budget laws do not apply to the district.

Sec. 156. The district treasurer or any other person authorized by the district board to fulfill the treasurer's duties shall give bonds to the district conditioned for performance of their duties, fixed and approved by the governing body and that premium paid by the district.

Sec. 157. Any investments made by the Fairfield-Suisun Sewer District shall be performed pursuant to Article 1 (commencing with Section 53600) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.

Article 10. Urgency

Sec. 160. The purpose of this act is to form the Fairfield-Suisun Sewer District in order that the area benefited may be served with sewer and storm drain facilities; special facts and circumstances, applicable to the area in which the district lies and not generally, makes the accomplishment of this purpose impossible under existing general laws, and therefore special legislation is necessary. The special facts are as follows:

(a) The area has no facilities for the treatment and disposal of sewage and is consequentlycontaminating and polluting the waters of Suisun Bay.

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(b) Recent increases have resulted in a population disproportionate to the assessedvaluation of taxable property in the area, and construction of adequate facilities cannottherefore be financed within the framework of existing general laws.

(c) The area is of strategic importance during times of war or threatened war because ofthe proximity of the Travis Air Force Base, formerly known as the Fairfield-SuisunArmy Air Base, center of military air operations on the Pacific Coast. Influx of militarymen and their families has greatly aggravated the problem of sewage disposal in thearea.

Sec. 161. This act is an urgency measure necessary for the immediate preservation of the public peace, health or safety within the meaning of Article IV of the Constitution and shall take effect immediately. The facts constituting such necessity are:

Water pollution and contamination are critical problems in the proposed district. State and local health authorities are agreed on the urgent need for immediate sewage treatment facilities in the area if a serious health condition is to be avoided. Inadequacy of existing law makes it necessary that this legislation take immediate effect so that necessary facilities may be provided.

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FAIRFIELD-SUISUN SEWER DISTRICT RESOLUTION NO. 2018-02

A RESOLUTION SUPPORTING AMENDMENTS TO THE FAIRFIELD-SUISUN SEWER DISTRICT ACT

WHEREAS, the Fairfield-Suisun Sewer District (District) was established pursuant to the Fairfield-Suisun Sewer District Act, Chapter 303, Statutes of 1951 (the Enabling Act) to provide collection, treatment, and disposal for sewage to the cities of Fairfield and Suisun City; and,

WHEREAS, the District has evolved since the adoption of Enabling Act in 1951 and through legislation in 1959, 1963, 1985, 1992, 1997, 2001, and 2002 has modified sections of the Enabling Act to incorporate organizational and other changes; and,

WHEREAS, property owners in Middle Green Valley Spefic Plan area and Rockville Corners areas of unincorporated area of Solano County have sought legislative changes to the Enabling Act to allow these areas to receive sewer services from the District; and,

WHEREAS, Enabling Act references certain roles that were fulfilled by the City of Fairfield in an ex officio capacity that are no longer applicable; and,

WHEREAS, Enabling Act established certain processes that are no longer efficient or effective;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FAIRFIELD-SUISUN SEWER DISTRICT:

1. Supports the changes to the Enabling Act set forth in Exhibit “4” attached hereto andincorporated herein.

2. The General Manager is hereby authorized and directed to do all things necessary andproper to implement this resolution.

PASSED AND ADOPTED THIS 22nd day of January 2018, by the following vote:

AYES: Directors

NOES: Directors

ABSENT: Directors

President ATTEST:

District Clerk

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Exhibit 5


RESOLUTION OF APPRECIATION TO MRS. CHRISTINA “TINA” HARSHELL

WHEREAS, on December 21, 2017, after providing 10.5 years of dedicated service to the Fairfield-Suisun Sewer District, Mrs. Christina Harshell elected to retire from the District; and, WHEREAS, her final title at the District was O&M Tech 4 in the Laboratory Department, where she served as a laboratory analyst; organizing work, collecting and analyzing wastewater samples, reporting results, along with many other tasks in the wastewater laboratory; and, WHEREAS, Tina has had a distinguished laboratory career, working more than 25 years in a wastewater treatment facility, including 10 years at the Fairfield-Suisun Sewer District working for the contract operations firms and 10 years working as a District employee; and, WHEREAS, she was active in the industry and a regular attendee of the Redwood Empire Section of the California Water Environment Association where she was recognized as Laboratory Analyst of the Year at the local chapter level and at state level; and, WHEREAS, Tina was actively engaged in the workplace and with her co-workers both on and off the job, participated in fund-raising, and contributing to celebratory events. NOW, THEREFORE, BE IT RESOLVED, THAT THE BOARD OF DIRECTORS OF THE FAIRFIELD-SUISUN SEWER DISTRICT hereby expresses its sincere appreciation for her years of service and best wishes for continuing success in all her future endeavors. UNANIMOUSLY PASSED AND ADOPTED this 22nd day of January, 2018. Michael A.Segala, Board President Greg Baatrup, District Clerk

33


RESOLUTION OF APPRECIATION TO MR. GARY HARDER

WHEREAS, on December 28, 2017 after providing 9.5 years of dedicated service to the Fairfield-Suisun Sewer District, Mr. Gary Harder elected to retire from the District; and, WHEREAS, Gary has been a protector of the environment by working in the wastewater industry for many years, with positions at East Bay MUD, City of West Sacramento, and Sacramento Regional treatment plant; and, WHEREAS, his final title at the District was O&M Tech 4 in the Operations Department, where he served as a designated operator-in-charge, providing oversight of plant operations on various shifts; and WHEREAS, he was widely known for his quiet, confident demeanor, his supervisors also noted his thoroughness, reliability, quality of his briefings as part of shift change, completing his assignments, keeping up with training, and working with others. NOW, THEREFORE, BE IT RESOLVED, THAT THE BOARD OF DIRECTORS OF THE FAIRFIELD-SUISUN SEWER DISTRICT hereby expresses its sincere appreciation for his years of service and best wishes for continuing success in all his future endeavors. UNANIMOUSLY PASSED AND ADOPTED this 22nd day of January, 2018. Michael A. Segala, Board President Greg Baatrup, District Clerk

34

January 8, 2018 RW-100.10.10/18

MEMORANDUM TO: Board of Directors THROUGH: Greg Baatrup, General Manager FROM: Meg Herston, Environmental Compliance Engineer SUBJECT: Wastewater Collection System Master Plan Update Recommendation: Receive report and file. Background: This project updates the District’s Collection System Master Plan to ensure that adequate and timely sewer system capacity is provided to serve the Cities of Fairfield and Suisun City. In addition to being prudent to have a plan for the District sewers, the State Water Resources Control Board requires the District to address system capacity for both existing and new customers in the Sanitary Sewer Management Plan. Many agencies update their master plans every 5 to 10 years. The overall goal for this Master Plan update is to increase confidence in the need for and timing of sewer capacity improvement projects and, if possible, reduce capital project needs. The District’s most recent master plan update was completed in 2008, and due to the economic downturn, planned development in the service area now differs from what was anticipated. The updated model and plan prepared as a part of this work will allow the District to re-evaluate the scope, triggers, and need for each of the Capital Improvement Projects identified in the 2008 plan, and identify cost-effective opportunities for system optimization and infrastructure improvement. For decades, the District has used the HYDRA model for its sewer capacity analysis. This program was very popular in the 1980’s and 1990’s, but has since been replaced by more accurate, modern, and fully dynamic hydraulic modeling programs. Staff recognizes that it is now time to change software. Thus, this work includes conversion of our existing hydraulic model into a new model utilizing up-to-date modeling software. In addition, this updated model and software will allow staff to respond more efficiently to capacity inquiries from the development community and city representatives.

35

Wastewater Collection System Master Plan Update Memo January 8, 2018 Page 2 of 2 Up-to-date flow monitoring data is essential for an accurate hydraulic model, so the District will conduct a comprehensive flow monitoring program in conjunction with the Master Planning work. In addition to changes in water use habits within the District service area, district pipes continue to age and flow monitoring technology continues to improve. It is important that the flow data relied upon for the model is current, as it provides real-life data to calibrate the model and substantiate the model’s assumptions. Discussion: The Request for Proposals for the Master Plan Update was sent to several consultants. Of the three proposals received, Woodard and Curran (W&C) was selected as the most qualified. W&C’s project manager, Gisa Ju, has worked with the District on numerous collection system studies, including the Sanitary Sewer Management Plan (SSMP) prepared collaboratively with the District, City of Fairfield, and City of Suisun City. The flow monitoring program will be implemented by V&A who has conducted flow monitoring for the District to support previous master plans. The contract value is $305,300 for W&C and $71,900 for V&A. The estimated split will be 80% to the Capital Fund (Capacity Fee funded) and 20% to O&M fund (Sewer Service Charge fund) as a cost share between future and existing customers. There are adequate funds budgeted for this work and the General Manager has been authorized to implement this budgeted work.

36

January 17, 2018 FI-210 MEMORANDUM TO: Board of Directors THROUGH: Greg Baatrup, General Manager FROM: Helen Gaumann, Director of Administrative Services SUBJECT: Quarterly Investment Report Attached is the District’s Quarterly Investment Report (attachment #1) for the quarter ended December 31, 2017. This report conforms to the District’s Investment Policy as re-adopted by the Board of Directors at its meeting on March 27, 2017. Also attached is the Investment Performance Report (attachment #2) for the same quarter, by Public Financial Management (PFM) Asset Management LLC. The District’s cash balances represent operating and reserve funds, held in short-term and medium-term instruments, and will enable the District to meet its anticipated cash flow requirements. Attachments: #1- Quarterly Investment Report #2- Investment Performance Report by PFM

37

Date of Par Market Market EstimatedInstrument Maturity Value Value Yield Annual Income

California Asset Mgt Program (CAMP) Various 20,146,698$ 20,111,274$ 2.05% 413,007$ WFB Business Market Rate Public Funds N/A 4,993,476 4,993,476 0.10% 4,993 State Local Agency Investment Fund N/A 9,629,641 9,629,641 1.18% 113,630 Totals 34,769,815$ 34,734,391$ 531,631$

NOTES:Market Value Par Value means the purchase cost of an asset.

Market Yield is an approximation of the gross income an asset isCalifornia Asset Mgt Program (CAMP) 20,111,274$ projected to earn annually, expressed as a percentage of the asset'sWFB Business Market Rate Public Funds 4,993,476 market value.State Local Agency Investment Fund 9,629,641 Market Value an estimate of the value at which the principal would

34,734,391$ be sold from a willing seller to a willing buyer.Market Values, Current Yields and Estimated Annual Income are from the following sources:

Market Value Local Agency Investment Fund monthly statement0 - 12 months 20,115,506$ Wells Fargo Bank monthly account statement1 - 2 years 2,538,043 California Asset Management Program statement2 - 3 years 3,935,776 3 - 4 years 5,627,134 All investments are in compliance with the District's current4 - 5 years 2,517,932 investment policy. The District has sufficient funds to meet its

expense requirements for the next three months.34,734,391$

Date

FAIRFIELD-SUISUN SEWER DISTRICT INVESTMENT REPORT

FOR THE QUARTER ENDED DECEMBER 31, 2017

Prepared by

Asset Detail

Summary of Portfolio Securities

Summary of Maturities

1/8/18

38

Attachment #1

Investment Performance Review

Client Management Team

50 California Street, Suite 2300

San Francisco, CA 94111

415-982-5544

PFM Asset Management LLC

One Keystone Plaza, Suite 300

Harrisburg, PA 17101-2044

717-232-2723

Monique Spyke, Managing Director

Izac Chyou, Senior Managing Consultant

Rachael Miller, Client Consultant

For the Quarter Ended December 31, 2017

FAIRFIELD-SUISUN SEWER DISTRICT

39

Attachment #2

Market Update

40




1.00%

1.10%

1.20%

1.30%

1.40%

1.50%

1.60%

1.70%

1.80%

1.90%

2.00%

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

Fed Rate Hike Fed Rate HikeFed Rate Hike

Market Update

Two-year treasury yields moved notably higher for the year ended December 31, 2017; the increase was most pronounced during the fourth quarter as markets responded to another rate hike by the Federal Reserve and the passage of the largest overhaul of the U.S. tax system in more than 30 years.

Interest Rate Update

2-Year Treasury YieldsDecember 31, 2016 – December 31, 2017

Source: Bloomberg, as of 12/31/17.

+40 basis points QoQ

141




Market Update

The yield on the 2-year U.S. Treasury note has increased by 70 basis points (0.70%) this year, while the yield on the 10-year U.S. Treasury note has decreased by 3 basis points (0.03%) since the beginning of the year as expectations of future growth and inflation prospects have fallen.

As a result, the spread between the 10-year U.S. Treasury and the 2-year U.S. Treasury is currently near a 10-year low.

A Flattening Yield Curve

10-Year/2-Year U.S. Treasury SpreadJanuary 1, 2002 – December 31, 2017


-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16

10-year low

242




Market Update

U.S. Treasury Yield Curve

Maturity 12/31/16 12/31/17 Change

3-Mo. 0.50% 1.38% + 0.88%

6-Mo. 0.61% 1.53% + 0.92%

1-Yr. 0.81% 1.74% + 0.93%

2-Yr. 1.19% 1.89% + 0.70%

3-Yr. 1.45% 1.97% + 0.52%

5-Yr. 1.93% 2.21% + 0.28%

10-Yr. 2.44% 2.41% - 0.03%

20-Yr. 2.76% 2.58% - 0.18%

30-Yr. 3.07% 2.74% - 0.33%

Yield Curve History


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3M 6M 1Yr

2Yr

3Yr

5Yr

U.S. Treasury Yield CurveDecember 31, 2017 September 30, 2017 December 31, 2016

343




3.1% 3.2%

-2%

0%

2%

4%

6%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2013 2014 2015 2016 2017 2018

U.S. Real GDPQoQ, SAAR

Market Update

Gross domestic product (GDP) increased at an annualized rate of 3.2% in the third quarter of 2017, the fastest pace of expansion over two consecutive quarters since 2014. Growth has averaged 2.3% over the last four quarters.

The acceleration in third quarter GDP reflected positive contributions from personal consumption and business investment boostedprimarily by a rise in private inventories and exports. This acceleration was offset by negative contributions from residential housing.

Economic Growth Remained Strong in Third Quarter

2.7% 2.7%2.0% 1.9%

Source: Bloomberg, as of December 2017. SAAR is seasonally adjusted annualized rate. Orange dashes denote four-quarter averages.

Bloomberg Survey of Economists

444




Market Update

Labor Market Activity Slows Down in December

The U.S. labor market added 611,000 jobs for the quarter ending December 31, 2017, and an average of 171,000 jobs per month over the past year.

Headline unemployment rate for the fourth quarter remained at 4.1% for the third consecutive month. The U6 unemployment rate decreased from 8.3% in September to 8.1% in December, while the labor force participation rate fell from 63.0% in September to 62.7% in December.

Average hourly earnings—an important gauge of wage growth—grew 2.5% over the past 12 months.

Source: Bloomberg, as of December 2017.

0k

100k

200k

300k

400k

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

Monthly Change in Nonfarm PayrollsNonfarm Payrolls 12-Month Moving Average

7.9%

6.7%

5.6%

5.0%4.7%

4.1%

3%

4%

5%

6%

7%

8%

9%

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

Unemployment Rate

545




0.5%

1.0%

1.5%

2.0%

2.5%

Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

Expectations for Average InflationRate over Next 5 Years

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

Inflation Measures(YoY)

Core CPI

Core PCE

Fed's Long Term Inflation Target

Market Update

Inflation pressures have declined since the beginning of 2017. The core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, moved slightly higher to 1.5% year-over-year in November.

The Fed expects inflation to remain subdued in the near term but to reach their 2% target in the medium term.

Inflation Remains Muted

Source: Bloomberg, as of November 2017. Inflation expectations based on yield difference between 5-year Treasury note and 5-year Treasury Inflation Protected Securities (TIPS).

646




0%

2%

4%

6%

0%

2%

4%

6%

8%

10%

12%

Nov

-88

Nov

-89

Nov

-90

Nov

-91

Nov

-92

Nov

-93

Nov

-94

Nov

-95

Nov

-96

Nov

-97

Nov

-98

Nov

-99

Nov

-00

Nov

-01

Nov

-02

Nov

-03

Nov

-04

Nov

-05

Nov

-06

Nov

-07

Nov

-08

Nov

-09

Nov

-10

Nov

-11

Nov

-12

Nov

-13

Nov

-14

Nov

-15

Nov

-16

Nov

-17

Infla

tion

Une

mpl

oym

ent

Unemployment Rate (U-3) Core CPI (YoY) Core PCE (YoY)

Market Update

Inflation Remains Lackluster Despite a Strong Labor Market

Source: Bloomberg, as of November 2017.

747




Market Update

GOP Tax Cuts and Jobs Act

Pers

onal

Tax

esB

usin

ess

Taxe

s

Income Tax Brackets Deductions Exemptions Other

Tax Rate Single Married

10% $9,525 $19,050

12% $38,700 $77,400

22% $82,500 $165,000

24% $157,500 $315,000

32% $200,000 $400,000

35% $500,000 $600,000

37% > $500,000 > $600,000

• Can deduct up to $10,000 in a blend of state and local property, income, and sales tax. The state and local deduction was previously unlimited.

• Deductible interest on mortgage capped at $750,000.

• Child tax credit raised from $1,000 to $2,000 per child.

• The estate tax exemption will be doubled from $5.5 million to $11 million.

• The deduction for interest on education loans, qualified tuition expenses, and expensive medical bills would be maintained.

• No changes will be made to 401(k) plans.

Marginal Tax Rate Deductions Exemptions Other

• Reduced from 35% to 21%.• Marks the largest one-time

decline in U.S. history and amounts to almost $1 trillion of tax cuts over the next decade.

• Pass-through businesses like limited liability corporations allowed to deduct 20% of their earnings. However, this will expire after 2025.

• Businesses will be exempt from paying the corporate alternative minimum tax.

• One-time tax on repatriated cash and profits will be 15.5%, up slightly from the 14% to 14.5% that had been proposed in earlier versions.

Source: The Washington Post, Business Insider.

848




Market Update

FOMC “Dot Plot” – December 2017

0%

1%

2%

3%

4%

5%Fed Participants’ Assessments of “Appropriate” Monetary Policy

Dec-17 FOMC Projections

Dec-17 Median

Fed Funds Futures

Fed expects 3 more rate hikes in 2018

2017 2018 2019 2020 Longer Term

History of RecentFed Rate Hikes

Dec ’17 1.25 - 1.50%

Jun ’17 1.00 - 1.25%

Mar ’17 0.75 - 1.00%

Dec ’16 0.50 - 0.75%

Dec ’15 0.25 - 0.50%

Source: Federal Reserve and Bloomberg. Individual dots represent each Fed members’ judgement of the midpoint of the appropriate target range for the federal funds rate at each year-end. Fed funds futures as of 12/13/17.

949




California Economy

Market Update

Source: Bloomberg, The Hill, U.S. Census Bureau.1. Gross state product is as of December 2016. 2. Unemployment, nonfarm payrolls, and average hourly earnings are as of November 2017.3. Population data as of July 2017.

Year-over-Year Changes in California

Gross State Product1 $2.6 billion (4.5%)

Unemployment2 4.6% (0.7%)

Nonfarm Payrolls2 17.1 million (1.7%)

Average Hourly Earnings2 $30.28 (3.1%)

Population3 39.5 million (0.7%)

Headline News

Attorney General Jeff Sessions’ announcement to rescind the Cole Memo may

hurt the anticipated $5 billion marijuana industry in

California

1050

Portfolio Review

51




Portfolio Review

Yields continued to climb during the fourth quarter, with some short- and intermediate-term yields reaching highs not seen since 2008. However, in this era of gradually increasing interest rates, new purchases were weighed against the probability for further rate increases and their potential to diminish the market value of portfolio investments. In this flat yield curve environment, we emphasized maturity selection.

We continued to maintain the portfolio’s duration in line with the benchmark’s duration to minimize return volatility.

Strong investor appetite for high-quality alternatives to U.S. Treasuries caused the yield spreads on investment-grade fixed income sectors (relative to U.S. Treasuries) to tighten over the quarter, resulting in positive relative performance for non-Treasury sectors.

• The yield spreads on federal agency securities vs. comparable-maturity Treasuries remained near historic lows, in some cases near zero, leading to diminished value of the agency sector.

• Supranationals carried more yield spread and offered an attractive alternative in the high-quality government agency space.

• Corporate yield spreads also remained near multi-year lows, as investors reaching for yield piled into a limited market supply of investment-grade securities, leading the corporate sector to deliver its ninth straight quarter of outperformance relative to U.S. Treasuries.

• Short-term commercial paper (CP) and negotiable bank certificates of deposit (CDs) continued to offer value during the quarter. Although the Fed’s December meeting caused CP/CD spreads to narrow, issuance has picked up and CP/CD yields have risen, widening the spread over similar-dated Treasuries.

• Asset-backed securities (ABS) performed positively relative to Treasuries. Further spread compression in the ABS sector is likely to be limited given that current level spreads sit at historically tight levels.

Portfolio Recap

1152



Portfolio Performance

Portfolio Performance (Total Return)

Effective

DurationPortfolio/Benchmark

Annualized Return

09/30/17 03/31/1712/31/17 06/30/17

Quarter Ended

5 Year1 Year 3 Year

2.08 -0.14% - - -0.40% 0.44% -FAIRFIELD-SUISUN SEWER DISTRICT*

BofA ML 0-5 Year U.S. Treasury Index 2.12 -0.25% - - -0.29% 0.34% -

Difference - 0.11% - -0.11% 0.10% -

-0.3%

-0.2%

-0.1%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

12/31/17 09/30/17 06/30/17 03/31/17 1 Year 3 Year 5 Year

-0.14%

0.40%0.44%

0.00%

-0.25%

0.29%

0.34%

0.00%

To

tal R

etu

rn

FAIRFIELD-SUISUN SEWER DISTRICT BofA ML 0-5 Year U.S. Treasury Index


*Portfolio performance is gross of fees unless otherwise indicated.

1253




For fixed-income holdings, when interest rates rise. . .

Market values of existing holdings decline, resulting in unrealized market value losses and possibly negative total return;

HOWEVER

Realized earnings will increase over time as new securities are added at higher interest rates.

The Impact of Rising Interest Rates

Market Value

Realized Earnings

Portfolio Review

1354



Portfolio Performance

Portfolio Earnings

Quarter-Ended December 31, 2017

Market Value Basis Accrual (Amortized Cost) Basis

Net Purchases/Sales

Change in Value

Interest Earned

$20,092,436.45

$44,881.80

($110,284.69)

$82,008.52

($28,276.17)

$20,027,033.56

$20,113,884.72

$44,881.80

$140.90

$82,008.52

$82,149.42

$20,158,907.42

Portfolio Earnings

Beginning Value (09/30/2017)

Ending Value (12/31/2017)

PFM Asset Management LLC14

55




Portfolio Review

The portfolio is in compliance with the District’s Investment Policy and the California Government Code.

Sector Allocation and Compliance

As of 12/31/2017. Detail may not add to total due to rounding.

Security Type Market Value % of Portfolio

% Change vs. 9/30/17

Permitted by Policy

In Compliance

U.S. Treasury $5,916,835 29.5% -0.2% 100%

Federal Agency $558,395 2.8% -3.4% 100%

Supranationals $1,473,600 7.4% +1.0% 30%

Negotiable CDs $2,674,376 13.4% +2.0% 30%

Corporate Notes $5,038,602 25.2% +2.9% 30%

Commercial Paper $1,956,015 9.8% -2.5% 25%

Asset-Backed Securities $2,308,690 11.5% -0.1% 20%

Securities Sub-Total $19,926,513 99.5%

Accrued Interest $84,240

Securities Total $20,010,753

CAMP $100,521 0.5% +0.2% 100%

Total Investments $20,111,274 100.0%

1556



Portfolio Snapshot

Portfolio Statistics

As of December 31, 2017

$20,146,698

$20,111,274

$19,926,513

$84,240

-

Accrued Interest:

Cash:

Par Value:

Total Market Value:

Security Market Value:

CAMP $100,521

$20,158,907

2.05%

1.75%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:

Effective Duration: 2.08 Years

Duration to Worst: 2.14 Years

Average Maturity: 2.39 Years

Credit Quality (S&P Ratings)

8.2%

A

3.6%

A-

9.2%

A+

12.7%

A-1

1.7%

A-1+

2.0%

AA

5.8%

AA-

32.3%

AA+

17.4%

AAA

0.5%

AAAm

5.1%

BBB+***1.5%

Not Rated**

0%

4%

8%

12%

16%

20%

24%

28%

0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years

27.3%

12.6%

19.6%

28.0%

12.5%

0.0%

Maturity Distribution

Sector Allocation

11.5%

Asset-Backed

13.4%

Certificate

of Deposit

9.8%

Commercial

Paper

25.2%

Corporate

2.8%

Federal

Agency/GSE

0.5%

Mny Mkt

Fund / Pool

7.4%

Supra-Sov /

Supra-Natl

Agency

29.4%

U.S.

Treasury


***

***

An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.The "Not Rated" category comprises asset-backed securities rated Aaa by Moody's. The "BBB+" category comprises securities rated A or better by Moody's and/or Fitch.

1657



Portfolio Composition

Sector Allocation

December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017

% of TotalMV ($MM)Sector % of Total% of Total% of Total MV ($MM)MV ($MM)MV ($MM)

U.S. Treasury 5.9 29.4% 6.0 29.7% 8.1 40.3% 11.5 57.8%

Corporate 5.0 25.2% 4.5 22.2% 3.1 15.7% 1.7 8.6%

Certificate of Deposit 2.7 13.4% 2.3 11.4% 1.0 4.9% 0.0 0.0%

Asset-Backed 2.3 11.5% 2.3 11.6% 1.6 8.2% 0.8 3.8%

Commercial Paper 2.0 9.8% 2.5 12.2% 2.4 12.2% 2.5 12.5%

Supra-Sov / Supra-Natl Agency 1.5 7.4% 1.3 6.4% 0.6 2.9% 0.6 3.0%

Federal Agency/GSE 0.6 2.8% 1.2 6.2% 3.1 15.7% 2.8 14.2%

Mny Mkt Fund / Pool 0.1 0.5% 0.1 0.3% 0.0 0.1% 0.0 0.1%

$20.0 100.0% $20.1 100.0% $20.0 100.0% $20.0 100.0%Total

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

December 2017 September 2017 June 2017 March 2017

Mny Mkt Fund / Pool

Federal Agency/GSE

Supra-Sov / Supra-Natl

Agency

Commercial Paper

Asset-Backed

Certif icate of Deposit

Corporate

U.S. Treasury


Detail may not add to total due to rounding.

1758




Maturity Distribution


>5

Years

4-5

Years

3-4

Years

2-3

Years

1-2

Years

0-1

YearsYield

at MarketPortfolio/Benchmark

Average

Maturity

2.05% 27.3% 12.6% 19.6% 28.0% 12.5% 0.0%2.39 yrsFAIRFIELD-SUISUN SEWER DISTRICT

BofA ML 0-5 Year U.S. Treasury Index 1.89% 23.2% 24.6% 20.4% 16.9% 14.8% 0.0%2.28 yrs

0%

4%

8%

12%

16%

20%

24%

28%

0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years

27.3%

12.6%

19.6%

28.0%

12.5%

0.0%

23.2%24.6%

20.4%

16.9%

14.8%

0.0%

FAIRFIELD-SUISUN SEWER DISTRICT BofA ML 0-5 Year U.S. Treasury Index


59




Sector/Issuer Distribution


% of SectorSector / Issuer Market Value ($) % of Total Portfolio

Asset-Backed

ALLY AUTO RECEIVABLES TRUST 1.9% 16.6% 382,959

AMERICAN EXPRESS CO 1.1% 9.7% 223,836

CITIGROUP INC 2.5% 21.5% 497,105

CNH EQUIPMENT TRUST 1.0% 8.7% 200,884

FORD CREDIT AUTO OWNER TRUST 0.8% 6.7% 154,784

HONDA AUTO RECEIVABLES 1.0% 8.6% 198,332

HYUNDAI AUTO RECEIVABLES 1.5% 12.7% 293,026

JOHN DEERE OWNER TRUST 0.3% 2.6% 59,552

TOYOTA MOTOR CORP 1.5% 12.9% 298,212

100.0% 11.5% 2,308,690 Sector Total

Certificate of Deposit

CANADIAN IMPERIAL BANK OF COMMERCE 1.4% 10.4% 279,409

CREDIT SUISSE GROUP 2.0% 14.9% 399,313

MITSUBISHI UFJ FINANCIAL GROUP INC 1.0% 7.4% 199,064

SKANDINAVISKA ENSKILDA BANKEN AB 1.9% 14.4% 384,992

SUMITOMO MITSUI FINANCIAL GROUP INC 2.0% 14.9% 399,726

SWEDBANK AB 2.0% 14.9% 397,839

UBS AG 1.2% 9.3% 249,637

WESTPAC BANKING CORP 1.8% 13.6% 364,394


60





100.0% 13.4% 2,674,376 Sector Total

Commercial Paper

BANK OF MONTREAL 1.5% 15.3% 299,082

BNP PARIBAS 2.5% 25.5% 498,813

CREDIT AGRICOLE SA 2.5% 25.4% 497,026

GENERAL ELECTRIC CO 1.6% 16.1% 314,591


100.0% 9.8% 1,956,015 Sector Total

Corporate

AMERICAN EXPRESS CO 1.7% 6.9% 345,721

AMERICAN HONDA FINANCE 0.4% 1.7% 84,331

BANK OF AMERICA CO 0.8% 3.4% 169,545

CATERPILLAR INC 0.7% 2.9% 148,249

CITIGROUP INC 1.7% 6.8% 342,238

COMCAST CORP 1.0% 4.1% 204,918

DEERE & COMPANY 0.2% 0.9% 44,681

GENERAL ELECTRIC CO 1.0% 4.2% 210,085

GOLDMAN SACHS GROUP INC 1.7% 6.6% 334,004

HOME DEPOT INC 0.5% 2.0% 99,205

INTERNATIONAL BUSINESS MACHINES 1.0% 3.9% 196,888

MORGAN STANLEY 1.7% 6.8% 344,422

PACCAR FINANCIAL CORP 0.3% 1.1% 54,581

PEPSICO INC 0.7% 3.0% 149,174


61





STATE STREET CORPORATION 1.0% 3.9% 196,293

TEXAS INSTRUMENTS INC 0.6% 2.4% 121,588

THE BANK OF NEW YORK MELLON CORPORATION 1.0% 3.9% 195,446

THE WALT DISNEY CORPORATION 1.0% 3.9% 198,344


UNILEVER PLC 0.5% 2.0% 99,263

UNITED PARCEL SERVICE INC 0.8% 3.2% 159,154

VISA INC 1.0% 3.9% 197,219

WAL-MART STORES INC 2.0% 7.9% 397,424

WELLS FARGO & COMPANY 1.7% 6.8% 344,843

100.0% 25.2% 5,038,602 Sector Total

Federal Agency/GSE

FANNIE MAE 1.3% 45.0% 251,227

FREDDIE MAC 1.5% 55.0% 307,168

100.0% 2.8% 558,395 Sector Total

Mny Mkt Fund / Pool

CAMP POOL 0.5% 100.0% 100,521

100.0% 0.5% 100,521 Sector Total

Supra-Sov / Supra-Natl Agency

INTER-AMERICAN DEVELOPMENT BANK 1.0% 13.6% 200,169

INTL BANK OF RECONSTRUCTION AND DEV 6.4% 86.4% 1,273,431


62





100.0% 7.4% 1,473,600 Sector Total

U.S. Treasury

UNITED STATES TREASURY 29.5% 100.0% 5,916,835

100.0% 29.5% 5,916,835 Sector Total

100.0% 20,027,034 Portfolio Total 100.0%


63




Portfolio Review

The U.S. economy is generally on strong footing heading into the new year, bolstered by expanding economic activity, a strong jobs market, and gains in housing. However, the continued rise of the domestic stock market, coupled with low volatility, may point to investor complacency.

The Federal Reserve recently reiterated its intentions to continue to gradually increase rates into 2018. However, persistently low inflation readings may derail these plans. In this uncertain environment, we plan to adopt a duration-neutral stance but will continue to carefully monitor the portfolio’s duration relative to the benchmark’s duration, making adjustments as appropriate.

Federal Agency issuance is expected to resume in the new year, but the overall level is expected to be slower than 2017. Given the flatness of the yield curve and narrow bullet agency spreads, we may seek value in callable agency securities where we find themadvantageous.

We will continue to focus on exposure to the corporate sector as well as other spread products to add value to the portfolios.

Broad diversification across all investment-grade sectors remains a key component of our portfolio strategy. We will continue to monitor the markets and will make relative-value trades as appropriate in order to safely enhance portfolio earnings. However, as always, while we continue to seek opportunities to enhance the earnings, our priority will always be to maintain the safety and liquidity of portfolio investments.

Outlook and Strategy

2364

Transactions & Account Holdings

65



Portfolio Activity

Quarterly Portfolio Transactions

Trade

Date

Settle

Date

Maturity

DatePar ($) CUSIP Security Description

Transact

Amt ($)

Yield

at Market

Realized

G/L (BV)Coupon

BUY

9/25/17 10/2/17 200,000 17305EGH2 CCCIT 2017-A9 A9 9/20/21 199,985.10 1.80%1.80%

10/2/17 10/10/17 200,000 4581X0CD8 INTER-AMERICAN DEVELOPMENT BANK 11/9/20 203,636.46 1.81%2.12%

10/11/17 10/20/17 400,000 931142EA7 WAL-MART STORES INC CORP NOTE 12/15/20 399,420.00 1.95%1.90%

10/27/17 10/30/17 350,000 89233HGQ1 TOYOTA MOTOR CREDIT CORP COMM PAPER 7/24/18 345,742.83 1.66%0.00%

10/27/17 10/31/17 340,000 172967LC3 CITIGROUP INC CORP (CALLABLE) NOTE 12/8/21 347,473.01 2.63%2.90%

10/30/17 10/31/17 500,000 22533UE25 CREDIT AGRICOLE CIB NY COMM PAPER 5/2/18 495,958.75 1.60%0.00%

11/6/17 11/13/17 55,000 69371RN85 PACCAR FINANCIAL CORP NOTES 11/13/20 54,995.05 2.05%2.05%

11/9/17 11/14/17 160,000 911312BP0 UNITED PARCEL SERVICE CORPORATE BOND 4/1/21 159,747.20 2.10%2.05%

11/16/17 11/17/17 400,000 87019U6D6 SWEDBANK (NEW YORK) CERT DEPOS 11/16/20 400,000.00 2.30%2.27%

11/29/17 11/30/17 500,000 912828RH5 US TREASURY NOTES 9/30/18 500,175.41 1.61%1.37%

3,105,000 3,107,133.81Total BUY

INTEREST

10/5/17 10/5/17 100,000 3135G0T45 FANNIE MAE NOTES 4/5/22 911.46 1.87%

10/7/17 10/7/17 300,000 17305EGB5 CITIBANK ABS 2017-A3 A3 4/7/22 2,816.00 1.92%

10/15/17 10/15/17 60,000 47788BAD6 JOHN DEERE ABS 2017-B A3 10/15/21 91.00 1.82%

10/15/17 10/15/17 180,000 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 259.50 1.73%

10/15/17 10/15/17 225,000 02582JHG8 AMERICAN EXPRESS ABS 2017-4 A 12/15/21 307.50 1.64%

10/15/17 10/15/17 210,000 12636WAB2 CNH 2017-A A2 7/15/20 287.00 1.64%

10/15/17 10/15/17 130,000 44931PAD8 HYUNDAI ABS 2017-A A3 8/15/21 190.67 1.76%

10/15/17 10/15/17 240,000 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 356.00 1.78%

10/15/17 10/15/17 155,000 34531HAD1 FORD ABS 2017-B A3 11/15/21 218.29 1.69%

10/15/17 10/15/17 200,000 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 280.00 1.68%

10/15/17 10/15/17 165,000 44932GAD7 HYUNDAI ABS 2017-B A3 1/15/22 243.38 1.77%


66



Portfolio Activity

Trade

Date

Settle

Date

Maturity


Transact

Amt ($)

Yield

at Market

Realized

G/L (BV)Coupon

10/15/17 10/15/17 145,000 02007FAC9 ALLY ABS 2017-4 A3 12/15/21 211.46 1.75%

10/15/17 10/15/17 120,000 89237RAD0 TOYOTA ABS 2017-C A3 11/15/21 178.00 1.78%

10/17/17 10/17/17 205,000 89236TDU6 TOYOTA MOTOR CREDIT CORP (CALLABLE) 4/17/20 1,998.75 1.95%

10/21/17 10/21/17 345,000 61746BEA0 MORGAN STANLEY CORP NOTES 4/21/21 4,312.50 2.50%

10/24/17 10/24/17 155,000 3135G0R39 FANNIE MAE GLOBAL NOTES 10/24/19 775.00 1.00%

10/31/17 10/31/17 555,000 912828T67 US TREASURY NOTES 10/31/21 3,468.75 1.25%

10/31/17 10/31/17 1,175,000 912828WD8 US TREASURY NOTES 10/31/18 7,343.75 1.25%

11/2/17 11/2/17 150,000 713448DR6 PEPSICO INC CORP NOTE 5/2/19 1,162.50 1.55%

11/3/17 11/3/17 400,000 86563YVN0 SUMITOMO MITSUI BANK NY CD 5/3/19 4,168.33 2.05%

11/5/17 11/5/17 100,000 904764AV9 UNILEVER CAPITAL CORP BONDS 5/5/20 900.00 1.80%

11/9/17 11/9/17 200,000 4581X0CD8 INTER-AMERICAN DEVELOPMENT BANK 11/9/20 2,125.00 2.12%


11/15/17 11/15/17 120,000 89237RAD0 TOYOTA ABS 2017-C A3 11/15/21 178.00 1.78%




11/15/17 11/15/17 240,000 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 356.00 1.78%

11/15/17 11/15/17 210,000 12636WAB2 CNH 2017-A A2 7/15/20 287.00 1.64%

11/15/17 11/15/17 200,000 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 280.00 1.68%

11/15/17 11/15/17 155,000 34531HAD1 FORD ABS 2017-B A3 11/15/21 218.29 1.69%

11/15/17 11/15/17 180,000 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 259.50 1.73%

11/15/17 11/15/17 145,000 02007FAC9 ALLY ABS 2017-4 A3 12/15/21 211.46 1.75%

11/27/17 11/27/17 200,000 459058FS7 INTL BANK OF RECON AND DEV GLOBAL NOTES 11/27/19 1,126.00 1.12%

11/30/17 11/30/17 280,000 13606A5Z7 CANADIAN IMPERIAL BANK NY CD 11/30/18 2,464.00 1.76%

12/5/17 12/5/17 200,000 25468PDU7 WALT DISNEY COMPANY CORP NOTES 6/5/20 1,790.00 1.80%

12/5/17 12/5/17 100,000 437076BQ4 HOME DEPOT INC CORP NOTES 6/5/20 900.00 1.80%

12/8/17 12/8/17 340,000 172967LC3 CITIGROUP INC CORP (CALLABLE) NOTE 12/8/21 4,930.00 2.90%


12/15/17 12/15/17 120,000 89237RAD0 TOYOTA ABS 2017-C A3 11/15/21 178.00 1.78%



67



Portfolio Activity

Trade

Date

Settle

Date

Maturity


Transact

Amt ($)

Yield

at Market

Realized

G/L (BV)Coupon



12/15/17 12/15/17 145,000 02007FAC9 ALLY ABS 2017-4 A3 12/15/21 211.46 1.75%

12/15/17 12/15/17 240,000 02007HAC5 ALLY ABS 2017-2 A3 8/15/21 356.00 1.78%

12/15/17 12/15/17 210,000 12636WAB2 CNH 2017-A A2 7/15/20 287.00 1.64%

12/15/17 12/15/17 200,000 43811BAC8 HONDA ABS 2017-2 A3 8/15/21 280.00 1.68%

12/15/17 12/15/17 155,000 34531HAD1 FORD ABS 2017-B A3 11/15/21 218.29 1.69%

12/15/17 12/15/17 180,000 89238MAD0 TOYOTA ABS 2017-A A3 2/15/21 259.50 1.73%

12/22/17 12/22/17 45,000 24422ETS8 JOHN DEERE CAPITAL CORP NOTES 6/22/20 438.75 1.95%

12/31/17 12/31/17 300,000 912828R93 US TREASURY N/B 6/30/18 937.50 0.62%

12/31/17 12/31/17 520,000 912828U99 US TREASURY N/B 12/31/18 3,250.00 1.25%

12/31/17 12/31/17 235,000 912828U81 US TREASURY NOTES 12/31/21 2,350.00 2.00%

11,395,000 56,036.69Total INTEREST

PAYDOWNS

12/15/17 12/15/17 8,823 12636WAB2 CNH 2017-A A2 7/15/20 8,823.22 0.00 1.64%

8,823 8,823.22 0.00Total PAYDOWNS

SELL

9/25/17 10/2/17 200,000 3135G0R39 FANNIE MAE GLOBAL NOTES 10/24/19 198,777.78 1.52% (378.23)1.00%

10/2/17 10/10/17 200,000 3137EAEE5 FREDDIE MAC NOTES 1/17/20 200,213.67 1.61% (474.04)1.50%

10/11/17 10/18/17 400,000 3137EAEE5 FREDDIE MAC NOTES 1/17/20 400,364.67 1.63% (1,144.16)1.50%

10/27/17 10/30/17 350,000 89233GYT7 TOYOTA MOTOR CREDIT CORP COMM PAPER 11/27/17 349,684.22 1.16% 19.05 0.00%

10/27/17 10/31/17 345,000 172967GS4 CITIGROUP INC CORP NOTES 5/1/18 347,887.65 1.83% (401.91)1.75%

10/30/17 10/31/17 500,000 22533TYF7 CREDIT AGRICOLE CIB NY COMM PAPER 11/15/17 499,745.83 1.22% 27.08 0.00%

11/6/17 11/13/17 55,000 3130ACE26 FHLB NOTES 9/28/20 54,457.08 1.79% (471.00)1.37%


68



Portfolio Activity

Trade

Date

Settle

Date

Maturity


Transact

Amt ($)

Yield

at Market

Realized

G/L (BV)Coupon

11/9/17 11/14/17 160,000 912828Q37 US TREASURY NOTES 3/31/21 157,234.75 1.83% (586.46)1.25%

11/16/17 11/17/17 25,000 3130ACE26 FHLB NOTES 9/28/20 24,701.29 1.87% (270.13)1.37%

11/16/17 11/17/17 305,000 912828Q37 US TREASURY NOTES 3/31/21 299,092.98 1.90% (1,796.13)1.25%

11/16/17 11/17/17 70,000 912828L32 US TREASURY NOTES 8/31/20 69,398.02 1.80% (422.23)1.37%

11/29/17 11/30/17 500,000 06538CAS0 BANK OF TOKYO MITSUBISHI UFJ COMM PAPER 1/26/18 498,860.00 1.44% 63.33 0.00%

3,110,000 3,100,417.94 -5,834.83Total SELL


69

For the Month Ending December 31, 2017Managed Account Detail of Securities Held

Fairfield-Suisun Sewer District

Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value

Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle

Par

U.S. Treasury Bond / Note

US TREASURY N/B

DTD 06/30/2016 0.625% 06/30/2018

298,757.70 299,426.86 5.18 298,464.85 02/28/1702/27/17AaaAA+ 300,000.00 912828R93 1.01

US TREASURY NOTES

DTD 09/30/2011 1.375% 09/30/2018

498,672.00 499,126.51 1,756.52 499,023.28 11/30/1711/29/17AaaAA+ 500,000.00 912828RH5 1.61

US TREASURY NOTES

DTD 10/31/2013 1.250% 10/31/2018

1,170,318.80 1,176,215.77 2,515.54 1,177,432.62 02/28/1702/27/17AaaAA+ 1,175,000.00 912828WD8 1.12

US TREASURY N/B

DTD 12/31/2016 1.250% 12/31/2018

517,115.56 520,433.27 17.96 520,792.19 02/28/1702/27/17AaaAA+ 520,000.00 912828U99 1.17

US TREASURY NOTES

DTD 03/31/2016 1.250% 03/31/2021

136,543.68 137,957.94 447.12 137,446.09 02/28/1702/27/17AaaAA+ 140,000.00 912828Q37 1.71

US TREASURY NOTES

DTD 08/01/2016 1.125% 07/31/2021

1,450,546.50 1,466,164.10 7,061.82 1,458,515.63 02/28/1702/27/17AaaAA+ 1,500,000.00 912828S76 1.78

US TREASURY NOTES

DTD 09/02/2014 2.000% 08/31/2021

249,179.75 252,874.18 1,698.90 253,261.72 06/28/1706/26/17AaaAA+ 250,000.00 912828D72 1.67

US TREASURY NOTES

DTD 10/31/2016 1.250% 10/31/2021

537,656.25 546,971.85 1,188.19 546,284.77 08/31/1708/30/17AaaAA+ 555,000.00 912828T67 1.64

US TREASURY NOTES

DTD 01/03/2017 2.000% 12/31/2021

233,806.67 237,543.81 12.98 237,854.88 06/28/1706/26/17AaaAA+ 235,000.00 912828U81 1.72

US TREASURY NOTES

DTD 02/02/2015 1.500% 01/31/2022

370,663.40 374,391.01 2,385.33 373,750.78 07/07/1707/05/17AaaAA+ 380,000.00 912828H86 1.88

US TREASURY NOTES

DTD 02/02/2015 1.500% 01/31/2022

453,574.95 458,567.58 2,918.89 457,298.44 02/28/1702/27/17AaaAA+ 465,000.00 912828H86 1.85

20,008.43 5,916,835.26 5,969,672.88 1.53 5,960,125.25 6,020,000.00 Security Type Sub-Total

Supra-National Agency Bond / Note

INTL BK RECON & DEVELOP NOTE

DTD 01/16/2014 1.875% 03/15/2019

584,632.04 588,403.03 3,229.69 590,715.45 03/02/1702/27/17AaaAAA 585,000.00 459058DL4 1.39

2870





Par

Supra-National Agency Bond / Note

INTL BANK OF RECON AND DEV GLOBAL

NOTES

DTD 10/27/2016 1.125% 11/27/2019

196,662.20 198,615.10 212.50 198,359.73 08/23/1708/18/17AaaAAA 200,000.00 459058FS7 1.50

INTL BANK OF RECON AND DEV GLOBAL

NOTES

DTD 08/29/2017 1.625% 09/04/2020

197,486.20 199,962.73 1,101.39 199,958.00 08/29/1708/22/17AaaAAA 200,000.00 459058GA5 1.63

INTL BANK OF RECONSTRUCTION AND DEV

NOTE

DTD 09/19/2017 1.561% 09/12/2020

294,651.00 299,346.87 1,326.85 299,280.00 09/19/1709/12/17AaaAAA 300,000.00 45905UP32 1.64

INTER-AMERICAN DEVELOPMENT BANK

DTD 11/08/2013 2.125% 11/09/2020

200,169.00 201,722.82 613.89 201,853.82 10/10/1710/02/17AaaAAA 200,000.00 4581X0CD8 1.81


Federal Agency Bond / Note

FREDDIE MAC NOTES

DTD 07/19/2017 1.375% 08/15/2019

114,013.19 114,899.18 711.56 114,873.50 08/03/1708/01/17AaaAA+ 115,000.00 3137EAEH8 1.43

FANNIE MAE GLOBAL NOTES

DTD 10/25/2016 1.000% 10/24/2019

152,472.57 153,823.79 288.47 153,287.25 02/28/1702/27/17AaaAA+ 155,000.00 3135G0R39 1.43

FREDDIE MAC NOTES

DTD 01/17/2017 1.500% 01/17/2020

193,154.91 194,996.52 1,332.50 194,994.15 02/28/1702/27/17AaaAA+ 195,000.00 3137EAEE5 1.50

FANNIE MAE NOTES

DTD 04/10/2017 1.875% 04/05/2022

98,754.40 99,613.54 447.92 99,551.00 04/10/1704/06/17AaaAA+ 100,000.00 3135G0T45 1.97

2,780.45 558,395.07 563,333.03 1.55 562,705.90 565,000.00 Security Type Sub-Total

Corporate Note

PEPSICO INC CORP NOTE

DTD 05/02/2017 1.550% 05/02/2019

149,173.50 149,924.47 381.04 149,887.50 05/02/1704/27/17A1A+ 150,000.00 713448DR6 1.59

AMERCIAN EXPRESS CREDIT CORP NOTES

DTD 08/15/2014 2.250% 08/15/2019

345,720.71 347,620.56 2,932.50 348,933.00 03/02/1702/27/17A2A- 345,000.00 0258M0DP1 1.77

2971





Par

Corporate Note

GOLDMAN SACHS GROUP INC CORP NOTES

DTD 03/08/2010 5.375% 03/15/2020

334,004.27 335,393.91 4,985.31 342,811.35 03/02/1702/27/17A3BBB+ 315,000.00 38141EA58 2.34

TOYOTA MOTOR CREDIT CORP (CALLABLE)

DTD 04/17/2017 1.950% 04/17/2020

204,174.67 204,927.40 821.71 204,905.70 04/17/1704/11/17Aa3AA- 205,000.00 89236TDU6 1.97

UNILEVER CAPITAL CORP BONDS

DTD 05/05/2017 1.800% 05/05/2020

99,263.40 99,749.22 280.00 99,681.00 05/05/1705/02/17A1A+ 100,000.00 904764AV9 1.91

HOME DEPOT INC CORP NOTES

DTD 06/05/2017 1.800% 06/05/2020

99,204.80 99,952.83 130.00 99,942.00 06/05/1705/24/17A2A 100,000.00 437076BQ4 1.82

WALT DISNEY COMPANY CORP NOTES

DTD 06/06/2017 1.800% 06/05/2020

198,344.00 199,811.09 260.00 199,768.00 06/06/1706/01/17A2A+ 200,000.00 25468PDU7 1.84

JOHN DEERE CAPITAL CORP NOTES

DTD 06/22/2017 1.950% 06/22/2020

44,680.86 44,977.24 21.94 44,972.55 06/22/1706/19/17A2A 45,000.00 24422ETS8 1.97

AMERICAN HONDA FINANCE CORP NOTES

DTD 07/20/2017 1.950% 07/20/2020

84,330.97 84,926.63 741.27 84,914.15 07/20/1707/17/17A2A+ 85,000.00 02665WBT7 1.98

STATE STREET CORP NOTES

DTD 08/18/2015 2.550% 08/18/2020

196,293.44 198,030.38 1,837.06 198,642.60 06/13/1706/08/17A1A 195,000.00 857477AS2 1.94

CATERPILLAR FINL SERVICE NOTE

DTD 09/07/2017 1.850% 09/04/2020

148,248.90 149,886.97 878.75 149,874.00 09/07/1709/05/17A3A 150,000.00 14913Q2A6 1.88

GENERAL ELECTRIC CAPITAL CORP CORP

NOTE

DTD 09/16/2010 4.375% 09/16/2020

210,085.40 213,359.47 2,552.08 214,894.00 09/06/1708/31/17A2A 200,000.00 36962G4R2 1.84

PACCAR FINANCIAL CORP NOTES

DTD 11/13/2017 2.050% 11/13/2020

54,581.23 54,995.26 150.33 54,995.05 11/13/1711/06/17A1A+ 55,000.00 69371RN85 2.05

WAL-MART STORES INC CORP NOTE

DTD 10/20/2017 1.900% 12/15/2020

397,423.60 399,457.16 1,498.89 399,420.00 10/20/1710/11/17Aa2AA 400,000.00 931142EA7 1.95

IBM CREDIT CORP NOTE

DTD 09/08/2017 1.800% 01/20/2021

196,887.60 199,622.29 1,130.00 199,586.00 09/08/1709/05/17A1A+ 200,000.00 44932HAB9 1.86

WELLS FARGO & CO CORP NOTE

DTD 01/24/2014 3.000% 01/22/2021

344,843.30 346,778.54 4,505.00 348,534.00 03/02/1702/27/17A2A 340,000.00 94974BFR6 2.32

3072





Par

Corporate Note

TEXAS INSTRUMENTS INC (CALLABLE)

NOTE

DTD 03/12/2014 2.750% 03/12/2021

121,588.08 122,274.28 999.17 122,734.80 05/04/1704/27/17A1A+ 120,000.00 882508AY0 2.13

UNITED PARCEL SERVICE CORPORATE

BOND

DTD 11/14/2017 2.050% 04/01/2021

159,153.76 159,756.19 428.22 159,747.20 11/14/1711/09/17A1A+ 160,000.00 911312BP0 2.10

MORGAN STANLEY CORP NOTES

DTD 04/21/2016 2.500% 04/21/2021

344,422.47 344,380.46 1,677.08 344,227.20 03/02/1702/27/17A3BBB+ 345,000.00 61746BEA0 2.56

BANK OF AMERICA CORP (CALLABLE)

DTD 09/18/2017 2.328% 10/01/2021

74,788.58 75,000.00 499.55 75,000.00 09/18/1709/13/17A3A- 75,000.00 06051GGS2 2.33

CITIGROUP INC CORP (CALLABLE) NOTE

DTD 12/08/2016 2.900% 12/08/2021

342,237.54 343,421.14 629.94 343,556.40 10/31/1710/27/17Baa1BBB+ 340,000.00 172967LC3 2.63

BANK OF AMERICA CORP CORP NOTES

DTD 01/24/2012 5.700% 01/24/2022

94,756.13 94,945.92 2,112.96 96,153.70 06/22/1706/19/17A3A- 85,000.00 06051GEM7 2.64

BANK OF NY MELLON CORP (CALLABLE)

NOTES

DTD 02/07/2017 2.600% 02/07/2022

195,445.77 197,098.38 2,028.00 197,373.15 06/09/1706/07/17A1A 195,000.00 06406RAA5 2.32

COMCAST CORPORATION CORP NOTES

DTD 07/02/2012 3.125% 07/15/2022

204,917.60 207,966.17 2,881.94 208,518.00 09/01/1708/29/17A3A- 200,000.00 20030NBD2 2.20

TOYOTA MOTOR CREDIT CORP

DTD 09/08/2017 2.150% 09/08/2022

196,812.00 199,777.78 1,349.72 199,764.00 09/12/1709/08/17Aa3AA- 200,000.00 89236TEC5 2.18

VISA INC (CALLABLE) NOTE

DTD 09/11/2017 2.150% 09/15/2022

197,219.20 199,473.83 1,266.11 199,446.00 09/28/1709/26/17A1A+ 200,000.00 92826CAG7 2.21


Commercial Paper

GE CAPITAL TREASURY LLC COMM PAPER

DTD 08/02/2017 0.000% 01/30/2018

314,590.50 314,665.05 0.00 312,921.00 08/03/1708/02/17P-1A-1 315,000.00 36164KAW1 1.33

3173





Par

Commercial Paper

BNP PARIBAS NY BRANCH COMM PAPER

DTD 05/26/2017 0.000% 02/23/2018

498,812.50 498,976.81 0.00 494,806.81 05/30/1705/30/17P-1A-1 500,000.00 09659CBP2 1.40

BANK OF MONTREAL CHICAGO COMM

PAPER

DTD 09/07/2017 0.000% 03/06/2018

299,082.00 299,258.50 0.00 297,926.10 09/08/1709/07/17P-1A-1 300,000.00 06366HC62 1.40

CREDIT AGRICOLE CIB NY COMM PAPER

DTD 10/30/2017 0.000% 05/02/2018

497,025.50 497,327.92 0.00 495,958.75 10/31/1710/30/17P-1A-1 500,000.00 22533UE25 1.60

TOYOTA MOTOR CREDIT CORP COMM

PAPER

DTD 10/27/2017 0.000% 07/24/2018

346,504.20 346,747.33 0.00 345,742.83 10/30/1710/27/17P-1A-1+ 350,000.00 89233HGQ1 1.66

0.00 1,956,014.70 1,956,975.61 1.49 1,947,355.49 1,965,000.00 Security Type Sub-Total

Certificate of Deposit

UBS AG STAMFORD CT CERT DEPOS

DTD 05/11/2017 1.550% 05/10/2018

249,637.37 250,029.06 2,529.51 250,056.99 08/30/1708/29/17P-1A-1 250,000.00 90275DGY0 1.51

CREDIT SUISSE NEW YORK CERT DEPOS

DTD 09/20/2017 1.610% 06/15/2018

399,313.15 400,000.00 1,842.56 400,000.00 09/20/1709/19/17P-1A-1 400,000.00 22549LFP5 1.61

CANADIAN IMPERIAL BANK NY CD

DTD 12/05/2016 1.760% 11/30/2018

279,408.92 280,202.97 424.36 280,358.40 04/21/1704/19/17P-1A-1 280,000.00 13606A5Z7 1.25

SUMITOMO MITSUI BANK NY CD

DTD 05/04/2017 2.050% 05/03/2019

399,726.40 400,000.00 1,343.89 400,000.00 05/04/1705/03/17A1A 400,000.00 86563YVN0 2.05

SKANDINAV ENSKILDA BANKEN NY CD

DTD 08/04/2017 1.840% 08/02/2019

384,992.23 389,879.24 2,990.00 389,847.90 08/04/1708/03/17Aa3A+ 390,000.00 83050FXT3 1.85

BANK TOKYO MITSUBISHI UFJ LTD LT CD

DTD 09/27/2017 2.070% 09/25/2019

199,064.20 200,000.00 1,104.00 200,000.00 09/27/1709/25/17A1A+ 200,000.00 06539RGM3 2.07

WESTPAC BANKING CORP NY CD

DTD 08/07/2017 2.050% 08/03/2020

364,394.10 365,000.00 2,993.00 365,000.00 08/07/1708/03/17Aa3AA- 365,000.00 96121T4A3 2.05

SWEDBANK (NEW YORK) CERT DEPOS

DTD 11/17/2017 2.270% 11/16/2020

397,839.20 400,000.00 1,135.00 400,000.00 11/17/1711/16/17Aa3AA- 400,000.00 87019U6D6 2.30

3274





Par


Asset-Backed Security / Collateralized Mortgage Obligation

CNH 2017-A A2

DTD 03/22/2017 1.640% 07/15/2020

200,884.17 201,170.53 146.64 201,169.06 03/22/1703/15/17NRAAA 201,176.78 12636WAB2 1.80

TOYOTA ABS 2017-A A3

DTD 03/15/2017 1.730% 02/15/2021

179,108.91 179,979.28 138.40 179,978.81 03/15/1703/07/17AaaAAA 180,000.00 89238MAD0 1.74

HYUNDAI ABS 2017-A A3

DTD 03/29/2017 1.760% 08/15/2021

129,316.03 129,989.48 101.69 129,989.48 03/29/1703/22/17NRAAA 130,000.00 44931PAD8 1.76

HONDA ABS 2017-2 A3

DTD 06/27/2017 1.680% 08/15/2021

198,331.70 199,982.70 149.33 199,982.70 06/27/1706/20/17AaaAAA 200,000.00 43811BAC8 1.68

ALLY ABS 2017-2 A3

DTD 03/29/2017 1.780% 08/15/2021

239,119.30 239,976.84 189.87 239,971.70 03/29/1703/21/17AaaNR 240,000.00 02007HAC5 1.79

CCCIT 2017-A9 A9

DTD 10/02/2017 1.800% 09/20/2021

198,976.92 199,986.10 890.00 199,985.10 10/02/1709/25/17NRAAA 200,000.00 17305EGH2 1.80

JOHN DEERE ABS 2017-B A3

DTD 07/15/2017 1.820% 10/15/2021

59,552.27 59,996.10 48.53 59,995.61 07/18/1707/11/17AaaNR 60,000.00 47788BAD6 1.82

TOYOTA ABS 2017-C A3

DTD 08/02/2017 1.780% 11/15/2021

119,103.20 119,991.43 94.93 119,990.44 08/02/1707/25/17AaaAAA 120,000.00 89237RAD0 2.00

FORD ABS 2017-B A3

DTD 06/27/2017 1.690% 11/15/2021

154,783.50 154,993.10 116.42 154,993.10 06/27/1706/20/17AaaAAA 155,000.00 34531HAD1 1.69

ALLY ABS 2017-4 A3

DTD 08/23/2017 1.750% 12/15/2021

143,839.64 144,998.30 112.78 144,998.13 08/23/1708/15/17NRAAA 145,000.00 02007FAC9 1.75

AMERICAN EXPRESS ABS 2017-4 A

DTD 05/30/2017 1.640% 12/15/2021

223,836.28 224,968.24 164.00 224,963.96 05/30/1705/22/17NRAAA 225,000.00 02582JHG8 1.65

HYUNDAI ABS 2017-B A3

DTD 08/16/2017 1.770% 01/15/2022

163,709.50 164,973.75 129.80 164,971.41 08/16/1708/09/17AaaAAA 165,000.00 44932GAD7 1.78

CITIBANK ABS 2017-A3 A3

DTD 04/11/2017 1.920% 04/07/2022

298,128.57 300,729.91 1,344.00 300,801.00 05/22/1705/15/17NRAAA 300,000.00 17305EGB5 1.82


3375





Par

20,046,176.78 20,055,688.78 1.75 84,240.48 20,058,386.67 19,926,512.81 Managed Account Sub-Total

Money Market Fund

CAMP Pool 100,520.75 100,520.75 0.00 100,520.75 NRAAAm 100,520.75

100,520.75 100,520.75 0.00 100,520.75 100,520.75 Money Market Sub-Total

$20,146,697.53 $20,156,209.53 $84,240.48 $20,158,907.42 $20,027,033.56 1.75%

$20,111,274.04

$84,240.48

Total Investments

Accrued Interest

Securities Sub-Total

3476

Appendix

77



Appendix

IMPORTANT DISCLOSURES

This material is based on information obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its

accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as

to what will or may happen under certain circumstances are based on assumptions, some, but not all of which, are noted in the presentation. Assumptions may or may not be proven

correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does

not necessarily reflect and is not a guaranty of future results.The information contained in this presentation is not an offer to purchase or sell any securities.

Dime

Ã Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate.

Where prices are not available from generally recognized sources, the securities are priced using a yield based matrix system to arrive at an estimated market value.

Ã In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and

forward settling sales are excluded.

Ã Performance is presented in accordance with the CFA Institute ’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees.

Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of

future returns.

Ã Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.

Ã Money market fund/cash balances are included in performance and duration computations.

Ã Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.

Ã Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.

Ã MBS maturities are represented by expected average life.


78



Appendix

GLOSSARY

Ã ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made.

Ã AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

Ã AMORTIZED COST: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until

the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis.

Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

Ã BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.

Ã COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.

Ã CONTRIBUTION TO DURATION: Represents each sector or maturity range ’s relative contribution to the overall duration of the portfolio measured as a percentage weighting. Since

duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate

sensitivity of the portfolio.

Ã DURATION TO WORST: A measure of the sensitivity of a security ’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put

date, whichever results in the highest yield to the investor.

Ã EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.

Ã EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on

investment returns, while ominal yield does not.

Ã FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.

Ã INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage.

Ã MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.

Ã MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

Ã NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.

Ã PAR VALUE: The nominal dollar face amount of a security.


79



Appendix

GLOSSARY

Ã PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the

mortgage-backed security.

Ã REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.

Ã SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity

proceeds) occurs on a non-business day, the funds are exchanged on the next business day.

Ã TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.

Ã UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.

Ã U.S. TREASURY: The department of the U.S. government that issues Treasury securities.

Ã YIELD: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on

an annualized basis.

Ã YTM AT COST: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from

purchase date to maturity, stated as a percentage on an annualized basis.

Ã YTM AT MARKET: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period

remaining until maturity, stated as a percentage on an annualized basis.


80

January 17, 2018

MEMORANDUM

TO: Board of Directors FROM: Greg Baatrup, General Manager SUBJECT: Board Calendar Recommendation: Review and comment as necessary on the calendar items.

Background: Attached is a listing of the contemplated agenda items for the next 12 months and a recap of the non-routine agenda items. These are provided as a recap of action from the last 12 months and as a look ahead for the next 12 months. The contemplated agenda items may vary from the table as issues and priorities change overtime.

Attachment: #1- Board Calendar

81

Board Calendar Attachment #1 January 17, 2018 Page 2 of 3

Fairfield-Suisun Sewer District Contemplated and Recent Board of Directors Agenda Items

January 11, 2018

Month Year Contemplated Board of Directors Meeting Agenda Items Executive

Committee Board of Directors

January 2018

1. Quarterly General Manager Report

1/15/2018 1/22/2018

2. Quarterly Investment Report from PFM 3. Resolution Congratulating retirees on the occasion of their

retirement 4. Support Changes to the FSSD Act 5. Approve Consulting Services Agreement for Master Plan Update

Study February

2018 Not Scheduled

Not Scheduled

March 2018

1. Ordinance amending Storm Drain Maintenance Charges

3/19/2018 3/26/2018 2. Investment Policy Update 3. Directors Report on CASA Winter Meeting 4. Directors Report on CASA DC Conference

April 2018


4/16/2018 4/23/2018 2. Quarterly Investment Report 3. Award 2018 Coating Project 4. Award 2018 Paving Rehabilitation Project

May 2018

5/14/2018 5/21/2018

June 2018

1. General Manager Performance Evaluation 6/18/2018 6/25/2018

July

2018 1. Quarterly General Manager Report

7/16/2018 7/23/2016 2. Quarterly Investment Report from PFM

August 2018 Not

Scheduled Not

Scheduled September

2018 1. Board Workshop - Reserve Levels

9/17/2018 9/24/2018 2. Directors Report on annual CASA Conference

October 2018

1. Quarterly General Manager Report 10/15/2018 10/22/2018

2. Quarterly Investment Report November

2018 1. Board Meeting Schedule for 2019

11/19/2018 11/26/2018 2. Independent Auditors Report for FY 2017/18

82

Board Calendar Attachment #1 January 17, 2018 Page 3 of 3

Recent Non-routine Agenda Items

2. Quarterly Investment Report from pfm3. Resolution deferring increase in Board Member compensation

2. Report on SCR 80 (Dodd)3. Board of Directors Report on CASA Annual Conference4. Report on Little Hoover Commission's Report on Special Districts5. Board topics for December 9, 2017 Workshop

January2017

Not Scheduled

Not Scheduled

7. Election of Officers/Executive Committee6. Approve Proposition 218 Notice5. Authorization to Bid Blower Project4. Authorization to contract with PG&E Cogen Upgrades3. Adopt Resolution to contract with PFM to manage district investments2. Quarterly Investment Report1. Quarterly General Manager Report

4. Pretreatment Program Modifications

2. Sewer Service Charge Update1. Resolution establishing regular meeting schedule for 2017

September2017

1. Receive 1st Year Organics Material Recovery Center Operation Report

Cancelled

5. Approve Sewer Service Charges and Capacity Fees4. Approve Budgets for FY 2017/18 and FY 2018/193. Board of Directors Report on CASA DC Conference2. Investment Policy Update1. Ordinance amending Storm Drain Maintenance Charges

July2017

August2017


4. Executive Committee recommendation on changes to General Manager compensation

4. Report on April 2017 Earth Day Activites3. Consider 3rd Amendment to Agreement with Lewis Homes2. Consider time extension for pipeline covered under the 1974 Recycled Water Agreement1. Report on Supreme Court decision

Not Scheduled

3. Presentation on Energy Usage and Opportunities

MonthYear

November2017

1. Board 2016 Meeting Schedule2a. Approve Award of Construction Services Agreement, Blower Project2b. Approve Design Services during Construction Agreement, Blower Project2c. Approve Professional Services for PLC/SCADA programming, Blower Project3. Independent Auditors Report for FY 2016/17

4. Report on April 2017 Earth Day Activites3. Consider 3rd Amendment to Agreement with Lewis Homes2. Consider time extension for pipeline covered under the 1974 Recycled Water Agreement1. Approve Award of Construction Services Agreement, 2017 Coating Project

December2017

Not Scheduled

October2017

1. Quarterly General Manager Report2. Quarterly Investment Report3. Report on Palo Alto Sludge RFP and consider Letter of Intent to participate in response to RFP

June2017

March2017

May2017

April2017

November2016

February2017

December2016

83