COUNTY SANITATION DISTRICT NO. 18 SERVICE CHARGE REPORT FOR FISCAL YEAR

COUNTY SANITATION DISTRICT NO. 18 SERVICE CHARGE REPORT FOR FISCAL YEAR 2017-18 INTRODUCTION County Sanitation District No. 18 of Los Angeles County encompasses all or portions of the cities of Artesia, Bellflower, Cerritos, Downey, Industry, La Habra Heights, La Mirada, Norwalk, Pico Rivera, Santa Fe Springs, and Whittier and unincorporated Los Angeles County. District No. 18 is one of seventeen (17) contiguous sanitation districts within the urbanized Los Angeles Basin signatory to the Amended Joint Outfall Agreement. These Districts, known as the Joint Outfall Districts, have formed a regional wastewater management system known as the Joint Outfall System. This regional system provides for operation and maintenance of large sewers, pumping plants, inland water reclamation plants, and the Joint Water Pollution Control Plant. These services are essential to protect the public health of the people served by the system. District No. 18, as a member of the Joint Outfall System, must provide a proportionate share of the revenue required to operate and maintain the facilities. The general revenue sources currently available to District No. 18 include cash on hand, capital improvement fund monies, a pro rata share of the ad valorem (property) taxes, grants, state low-interest loans, interest income, contract revenue, and rate stabilization fund monies. For fiscal year 2017-18, the proposed expenditures exceed these revenue sources and necessitate service charges and industrial wastewater surcharges to supplement the other revenue sources. The service charge will also support the District s targeted goal for reserves of six months of O&M and one year of debt service. PROPOSED SYSTEM DESCRIPTION The required supplemental revenue under the Service Charge Ordinance will be allocated among classes of developed parcels of real property on the basis of use of the sewerage system. The revenue derived from the service charge will be used for operation and maintenance and capital costs. All industrial dischargers in District No. 18 discharging more than 1.0 million gallons per year are required to file a wastewater surcharge statement as prescribed in the Wastewater Ordinance to pay their appropriate share of the costs based on their use of the sewerage system. All other users of the sewerage system, except for contractual and local government users, will pay service charges. The basic term used to define the service charge is a sewage unit. A sewage unit represents the average daily quantity of sewage flow and strength from a single-family home measured in terms of flow, chemical oxygen demand, and suspended solids. The number of sewage units (SU) per unit of measure shall be determined by the following formula: SU = A FLOW FLOW avg sfh + COD B COD avg sfh + SS C SS avg sfh where: A = The proportion of the total operation and maintenance and capital costs required for conveyance, treatment, and disposal of wastewater for the fiscal year which is attributable to flow; B = The proportion of the total operation and maintenance and capital costs required for conveyance, treatment, and disposal of wastewater for the fiscal year which is attributable to COD; C = The proportion of the total operation and maintenance and capital costs required for conveyance, treatment, and disposal of wastewater for the fiscal year which is attributable to suspended solids; DOC 4059979

FLOWsfh = Average flow of wastewater from a single-family home in gallons per day; CODsfh = Average loading of COD in the wastewater from a single-family home in pounds per day; SSsfh = Average loading of suspended solids in the wastewater from a single-family home in pounds per day; FLOWavg = Estimated flow of wastewater which will enter the sewerage system from a user in gallons per day; CODavg = Estimated loading of COD which will enter the sewerage system from a user in pounds per day; SSavg = Estimated loading of suspended solids which will enter the sewerage system from a user in pounds per day. For fiscal year 2017-18, the proportions of the total operation and maintenance and capital costs attributable to flow, chemical oxygen demand, and suspended solids have been assigned the following values: A = 0.3049 B = 0.3348 C = 0.3603 The service charge for each sewage unit is determined by dividing the total required supplemental revenue by the total number of sewage units in the District. The service charge for each parcel is determined by multiplying the service charge for each sewage unit by the number of sewage units attributable to the parcel, which in turn, is determined by the class of real property and the sewage unit formula and the flow, COD and SS loadings from Table 1, which shows the corresponding value for each class of real property in District No. 18. Based upon presently anticipated sources of funds, the service charge rate for fiscal year 2017-18 is $170 per sewage unit. Parcels with significantly lower water usage may be eligible for a reduced rate pursuant to the terms of the Master Service Charge Ordinance of District No. 18 of Los Angeles County. DESCRIPTION OF PARCELS RECEIVING SERVICES AND IDENTIFICATION OF AMOUNT OF CHARGE FOR EACH PARCEL All parcels of real property within the 2017-18 Tax Rate Areas as shown in Table 2 are receiving or benefiting from the services and facilities of District No. 18. Additionally, the parcels listed in Table 3, which do not fall within the Tax Rate Areas shown in Table 2, are receiving or benefiting from the services and facilities of District No. 18. Said parcels are more particularly described in maps prepared in accordance with Section 327, Revenue and Taxation Code, which are on file in the office of the County Assessor, which maps are hereby incorporated herein by reference. All commercial and institutional parcels assessed a service charge based on the Los Angeles County Assessor's current tax roll shall be charged on the basis of not less than one (1.0) sewage unit. No charge shall be imposed on the owner or owners of any parcels as to which the fair market value of improvements is less than $1,000 as determined on the basis of the Assessor's current tax roll. This assumption is predicated on the fact that this type of parcel would be a vacant piece of land; however, should subsequent evaluation reveal that the property is not vacant, then an appropriate service charge would be levied. DOC 4059979 2

TABLE 1 LOADINGS FOR EACH CLASS OF LAND USE DESCRIPTION RESIDENTIAL UNIT OF MEASURE FLOW (Gallons COD (Pounds SUSPENDED SOLIDS (Pounds Single Family Home Dwelling Unit 260 1.22 0.59 Condominiums Dwelling Unit 195 0.92 0.44 Multi-Unit Residential Dwelling Unit 156 0.73 0.35 Mobile Home Parks No. of Spaces 156 0.73 0.35 COMMERCIAL Hotel/Motel/Rooming House Room 125 0.54 0.28 Store 1000 ft 2 100 0.43 0.23 Supermarket 1000 ft 2 150 2.00 1.00 Shopping Center 1000 ft 2 325 3.00 1.17 Regional Mall 1000 ft 2 150 2.10 0.77 Office Building 1000 ft 2 200 0.86 0.45 Medical, Dental, Veterinary 1000 ft 2 300 1.29 0.68 Clinic or Building Restaurant 1000 ft 2 1,000 16.68 5.00 Indoor Theatre 1000 ft 2 125 0.54 0.28 Car Wash Tunnel - No Recycling 1000 ft 2 3,700 15.86 8.33 Tunnel - Recycling 1000 ft 2 2,700 11.74 6.16 Wand 1000 ft 2 700 3.00 1.58 Bank, Credit Union 1000 ft 2 100 0.43 0.23 Service Shop, Vehicle 1000 ft 2 100 0.43 0.23 Maintenance & Repair Shop Animal Kennels 1000 ft 2 100 0.43 0.23 Gas Station 1000 ft 2 100 0.43 0.23 Auto Sales 1000 ft 2 100 0.43 0.23 Wholesale Outlet 1000 ft 2 100 0.43 0.23 Nursery/Greenhouse 1000 ft 2 25 0.11 0.06 Manufacturing 1000 ft 2 200 1.86 0.70 Light Manufacturing 1000 ft 2 25 0.23 0.09 Lumber Yard 1000 ft 2 25 0.23 0.09 Warehousing 1000 ft 2 25 0.23 0.09 Open Storage 1000 ft 2 25 0.23 0.09 Drive-in Theatre 1000 ft 2 20 0.09 0.05 Night Club 1000 ft 2 350 1.50 0.79 Bowling/Skating 1000 ft 2 150 1.76 0.55 Club& Lodge Halls 1000 ft 2 125 0.54 0.27 Auditorium, Amusement 1000 ft 2 350 1.50 0.79 Golf Course and Park 1000 ft 2 100 0.43 0.23 (Structures and Improvements) Campground, Marina, Sites, Slips, or 55 0.34 0.14 Recreational Vehicle Park Spaces Convalescent Home Bed 125 0.54 0.28 Horse Stables Stalls 25 0.23 0.09 Laundromat 1000 ft 2 3,825 16.40 8.61 DOC 4059979 3

DESCRIPTION COMMERCIAL UNIT OF MEASURE FLOW (Gallons COD (Pounds SUSPENDED SOLIDS (Pounds Mortuary, Funeral Home 1000 ft 2 100 1.33 0.67 Health Spa, Gymnasium With Showers 1000 ft 2 600 2.58 1.35 Without Showers 1000 ft 2 300 1.29 0.68 Convention Center, Fairground, Racetrack, Sports Stadium/Arena INSTITUTIONAL Average Daily Attendance 10 0.04 0.02 College/University Student 20 0.09 0.05 Private School 1000 ft 2 200 0.86 0.45 Library, Museum 1000 ft 2 100 0.43 0.23 Post Office (Local) 1000 ft 2 100 0.43 0.23 Post Office (Regional) 1000 ft 2 25 0.23 0.09 Church 1000 ft 2 50 0.21 0.11 DOC 4059979 4

DOC 4059979 5 TABLE 2 TAX RATE AREAS IN SANITATION DISTRICT NO. 18 000057 000139 000155 000191 001765 001863 002005 002526 002577 002594 002611 003471 003481 003493 003508 003518 003528 003537 003547 003558 003568 003578 003618 003808 004549 005298 005317 005326 005336 005345 005355 005364 005630 005904 005913 005922 005934 005945 005954 006004 006019 006040 006057 006230 006454 006692 006701 006761 006775 006804 006867 006879 006888 006897 000122 000142 000156 000196 001766 001864 002480 002528 002579 002595 002612 003472 003482 003494 003510 003519 003529 003538 003548 003560 003569 003580 003642 004388 005000 005299 005318 005328 005337 005346 005356 005365 005641 005905 005914 005923 005936 005946 005955 006005 006025 006041 006058 006231 006538 006693 006702 006762 006785 006805 006871 006880 006889 006898 000123 000144 000157 000270 001767 001865 002488 002563 002581 002596 002613 003473 003483 003496 003511 003521 003530 003540 003549 003561 003570 003581 003643 004456 005239 005306 005319 005329 005338 005347 005357 005366 005689 005906 005915 005925 005937 005947 005957 006007 006027 006042 006140 006233 006599 006694 006703 006763 006794 006821 006872 006881 006890 006899 000124 000145 000162 001759 001768 001955 002489 002564 002582 002597 002614 003474 003485 003497 003512 003522 003531 003541 003550 003562 003571 003582 003644 004458 005240 005307 005320 005330 005339 005348 005358 005367 005705 005907 005916 005926 005938 005948 005958 006008 006029 006044 006141 006234 006653 006695 006706 006766 006795 006843 006873 006882 006891 006900 000125 000147 000165 001760 001769 001970 002490 002565 002583 002598 002616 003475 003486 003498 003513 003523 003532 003542 003551 003563 003572 003583 003660 004460 005254 005308 005321 005331 005340 005349 005359 005368 005811 005908

DOC 4059979 6 005917 005927 005939 005949 005959 006009 006033 006045 006142 006258 006668 006696 006712 006767 006798 006844 006874 006883 006892 006901 000126 000150 000185 001761 001774 001972 002493 002573 002587 002599 002618 003476 003487 003503 003514 003524 003533 003543 003552 003564 003574 003595 003661 004467 005291 005310 005322 005332 005341 005351 005360 005369 005900 005909 005918 005928 005940 005950 005960 006011 006034 006046 006143 006322 006687 006697 006713 006768 006799 006845 006875 006884 006893 006902 000127 000152 000186 001762 001825 001986 002509 002574 002591 002604 002619 003477 003488 003504 003515 003525 003534 003544 003554 003565 003575 003600 003666 004470 005295 005311 005323 005333 005342 005352 005361 005571 005901 005910 005919 005930 005941 005951 005961 006015 006035 006051 006147 006373 006689 006698 006721 006770 006800 006859 006876 006885 006894 006903 000128 000153 000187 001763 001828 001987 002511 002575 002592 002608 002622 003479 003491 003505 003516 003526 003535 003545 003555 003566 003576 003614 003741 004474 005296 005314 005324 005334 005343 005353 005362 005583 005902 005911 005920 005931 005942 005952 005966 006016 006038 006052 006170 006374 006690 006699 006724 006773 006801 006864 006877 006886 006895 006904 000137 000154 000188 001764 001831 002002 002516 002576 002593 002610 003469 003480 003492 003507 003517 003527 003536 003546 003556 003567 003577 003615 003742 004477 005297 005315 005325 005335 005344 005354 005363 005622 005903 005912 005921 005932 005944 005953 006001 006017 006039 006056 006185 006395 006691 006700 006759 006774 006802 006866 006878 006887 006896 006905 006906 006916 009010 009049 009058 009067 009076 009085 009095 009104 009116 009195 009222 009232 009611 009625 009634 009645 009658 009671 009682 009695 009710 009725 009781 009894 010194 010400 010562 010797 011500 011999 012012 012057

DOC 4059979 7 012299 012428 012616 013026 013057 013085 013240 013252 013309 013474 013561 013711 013861 014063 014364 014713 015052 015173 015333 015603 006907 006918 009015 009050 009059 009068 009077 009086 009096 009105 009117 009196 009223 009233 009616 009626 009635 009646 009660 009674 009683 009697 009711 009727 009782 009924 010204 010401 010563 011124 011501 012000 012013 012058 012300 012429 012617 013027 013061 013086 013241 013253 013310 013475 013563 013725 013862 014213 014408 014714 015067 015179 015335 015627 006908 007696 009042 009051 009060 009069 009078 009087 009097 009106 009118 009197 009224 009235 009617 009627 009636 009650 009661 009675 009685 009701 009712 009731 009783 009928 010266 010541 010564 011288 011502 012001 012014 012059 012301 012487 012680 013029 013071 013087 013243 013254 013311 013476 013588 013729 013863 014313 014445 014724 015104 015180 015456 015628 006909 007939 009043 009052 009061 009070 009079 009088 009098 009107 009119 009211 009225 009238 009618 009628 009638 009651 009664 009676 009686 009702 009714 009732 009784 009952 010274 010542 010601 011289 011503 012002 012015 012060 012306 012503 012812 013033 013074 013109 013246 013255 013340 013477 013592 013751 013864 014317 014503 014807 015105 015203 015477 015666 006910 008405 009044 009053 009062 009071 009080 009089 009099 009109 009120 009216 009226 009245 009620 009629 009639 009652 009665 009677 009688 009703 009717 009733 009798 009953 010275 010543 010620 011290 011505 012003 012019 012074 012307 012523 012857 013039 013075 013173 013247 013256 013386 013478 013605 013846 013865 014321 014510 014824 015145 015266 015479 015667 006912 008409 009045 009054 009063 009072 009081 009090 009100 009110 009122 009217 009227 009246 009621 009630 009640 009653 009666 009678 009690 009704 009719 009734 009877 009972 010333 010544 010710 011349 011512 012006 012020 012075

DOC 4059979 8 012402 012526 012931 013043 013078 013188 013248 013305 013408 013479 013667 013857 013876 014322 014626 014855 015148 015267 015493 015672 006913 008568 009046 009055 009064 009073 009082 009091 009101 009112 009123 009218 009228 009265 009622 009631 009641 009654 009667 009679 009692 009705 009720 009735 009889 009973 010366 010545 010785 011459 011543 012007 012021 012133 012403 012527 012967 013050 013081 013189 013249 013306 013409 013480 013668 013858 013883 014336 014627 015037 015170 015269 015497 015678 006914 008600 009047 009056 009065 009074 009083 009092 009102 009113 009124 009219 009229 009266 009623 009632 009642 009655 009669 009680 009693 009706 009723 009738 009890 009974 010387 010557 010793 011460 011752 012010 012022 012270 012404 012528 012968 013055 013083 013238 013250 013307 013410 013536 013676 013859 013940 014345 014670 015042 015171 015314 015501 015691 006915 008601 009048 009057 009066 009075 009084 009094 009103 009115 009171 009221 009231 009348 009624 009633 009643 009657 009670 009681 009694 009709 009724 009780 009893 010193 010399 010558 010794 011496 011878 012011 012056 012298 012405 012529 013025 013056 013084 013239 013251 013308 013411 013537 013684 013860 014062 014346 014690 015050 015172 015315 015521 015692 015693 015760 016079 016412 015699 015761 016084 016413 015701 015771 016097 016461 015702 015831 016136 016462 015703 015832 016144 016511 015714 015834 016150 016512 015723 015835 016270 016515 015755 015836 016401 015756 016078 016402

TABLE 3 PARCEL NUMBERS SERVED BY SANITATION DISTRICT NO. 18 8006017024 8125014043 8125061001 8019002030 DOC 4059979 9