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RESOLUTION NO. OCSD 11-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING A POLICY REGARDING THE TRANSFER OF LOCAL SEWERS WHEREAS, the core function of the Orange County Sanitation District ("Sanitation District") is to treat and dispose of wastewater generated within its jurisdiction, a 463 -square - mile area of central and northwest Orange County. The Sanitation District operates a regional network of trunk sewers that delivers the area's wastewater to the Sanitation District's treatment and disposal facilities. A "trunk sewer" is a sewer that receives wastewater from many tributary sewers over a large area. Cities, sanitary districts, and one water district within the Sanitation District's jurisdiction operate local networks of tributary sewers that convey wastewater from individual properties to the Sanitation District's regional collection system; and WHEREAS, over the years the Sanitation District and/or its predecessor agencies have, for a variety of site-specific reasons, acquired and operated certain local sewer facilities. Today, the Sanitation District owns and operates approximately 176 miles of local sewers, which represents about 3% of the local sewers within the Sanitation District's service area. The remaining ninety-seven percent (97%) of the local sewers within the Sanitation District are owned and operated by cities, sanitary districts, and one water district; and WHEREAS, in the interest of efficiency, the Sanitation District should focus its resources on the regional network of trunk sewers, and leave operation of local sewers to the cities, sanitary districts, and the water district. The Sanitation District should own and operate local sewers only in exceptional situations, such as when no qualified provider of local sewer service is available; and WHEREAS, one of the goals set forth in the Sanitation District's current Five Year Strategic Plan is to transfer to cities and sanitary districts all "local sewer assets that are not serving a true regional purpose" by Fiscal Year 2012-2013. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby resolve, determine, and order as follows: Section 1: Sanitation District staff shall work with cities and sanitary districts to transfer all local sewer facilities to the appropriate city or sanitary district. Section 2: For purposes of this Resolution, the term "local sewer facilities" generally includes, but is not necessarily limited to, the following: Sewers that connect directly to parcels and/or private sewer laterals; Tributary sewers that feed into the Sanitation District's regional trunk sewers; Any sewer for which a city or sanitary district charges a user fee to operate or maintain. 766336.2 EXHIBIT 1