1. Status Update on USEPA Compliance Sausalito City Council February 26, 2013 SMCSD Directors Raymond Gergus, President Bill Ring, Vice President Ann Arnott Don Beers Dan Rheiner Sausalito-Marin City Sanitary District

2. 1 Our Service Area: Shared Challenges City of Sausalito  Owns 23 miles of sewers within the City Boundary TCSD (served under contract)  Owns 27 miles of sewers SMCSD - Marin City  SMCSD Owns 6 miles of sewers NPS – Marin Headlands  NPS Owns 15 miles of sewer ~10,000 Property Owners  Own about 70 miles of sewer laterals

3. 2 USEPA and Regional Water Board Regulatory Action SMCSD was issued Administrative Compliance Orders by USEPA in 2007 (plant) and 2008 (collections – City & TCSD) requiring:  Immediate elimination of Sanitary Sewer Overflows and treatment Plant bypasses  Collection System Maintenance and Management  Collection System Assessment  Capacity Assurance  Treatment Plant and collections Infrastructure renewal Goal – 35% reduction of Inflow and Infiltration to eliminate possible sanitary sewer overflows and treatment plant blending  SMCSD, City and TCSD

4. 3 Regulatory Compliance Planning 2008-2009 – Completed extensive capacity flow monitoring and plant and collection system infrastructure condition assessment 2010 – The District adopted a four-year sewer rate and finance plan – currently in third year 10-year Capital Improvement Plan developed and integrated into the finance plan. Required capital improvements are underway - $40 million investment required – about $10 million completed 2012 - Private Sewer Lateral Ordinance and Loan Program adopted for unincorporated areas within the District

5. 4 Partner Agency Coordination SMCSD/Tamalpais Community Services District  Renewed 30-yr service agreement  Defines our shared business relationship (financial, capacity rights, asset ownership, joint planning, and jurisdictional responsibilities)  Includes every 5-yr system flow monitoring  Includes Inflow and infiltration prevention SMCSD/City of Sausalito  Update existing service agreement  Consider service opportunities  Work through existing Sewer Committee

6. 5 New Locust Street Sewer Pump Station Completed July 2012

7. 6 Marin City Sewer Rehabilitation Completed Dec 2013  32,000 liner feet of pipeline assessed  13,200 liner feet of high priority pipe repaired  Pipe bursting  Lining (Cured-in-Place-Pipe)  Open trench cut

8. 7 Sewer Pump Station Reliability Improvements In-Progress Installation of underground piping and valves to facilitation emergency bypass pumping at the four sewer station locations. Includes emergency bypass installation at City owned stations (Whiskey and Gate 5) Includes site improvements at the Main Street Pump Station

9. 8 Main Street Pump Station Rehabilitation Final Design Stage Final Design and permitting stage Construction June/July of 2014 Rehabilitation improvements  New wet weather sewer pumps  Additional submersible pump for backup pumping  Interior structure reinforcement and resurfacing  Replace gates and valves  Electrical upgrades  Replace odor scrubber No new external structures Potential site landscape improvements

10. 9 Headwork’s, Primary and Secondary Improvements Final Design Stage

11. 10 Sewer Rate Structure Study Objectives Respond to customer inquiries  Why charge all residential customers the same amount? Identify potential sewer rate structure alternatives and refinements Understand the impacts of changing the current structure  Customer bill impacts  District financial impacts  District implementation requirements Maintain financial stability and revenue neutrality

12. 11 Sewer Rate Structure Methods Studied Fixed Rates per Customer Class - Existing Flow-Based Rates Per Individual Customer  Combination of fixed and flow-based charges per customer  Individual customer flow charge and billing Flow Based Rates per Customer Class  Flow-based EDUs for each residential class Fixed and Flow-Based Rates per Customer Class  88% of revenue from a fixed charge per EDU  12% of revenue from a flow-based charge per class  Customers in each residential class have the same sewer rate

13. 12 Public Input – Jan 30 Rate Study Community Meeting Alternative 3 fixed and flow structure being considered – 12% flow component not enough. Good that the District is looking a flow based charges Strictly flow based system is the best and most equitable Floating Homes sewer system does not contribute winter storm flow Customers with multi-units are charged too much (per EDU and flow) Sewer charges hard to manage for some customers Single family residences should pay more Look at how the Marin Municipal Water District charges Consider using square footage in rate calculation Concerns about application of Proposition 218 - proportionality