MEMORANDUM

FROM: Akin Okupe, M.B.A., P.E., General Manager, East Palo Alto Sanitary District

TO: Board of Directors, East Palo Alto Sanitary District.

SUBJECT: Summary of Operational Improvements and achievements

DATE: October 31, 2019.

Since I became the General Manager on October 23, 2017, we have achieved the following:

1. All financial reports were filed on time and meeting the requirements of applicable laws
2. Board periodically reviews strategy, financial and other goals, this has helped keep our
rates as low as possible
3. Board approved annual budget in an open and public meeting with input from the
public
4. I proposed changes to the capital improvement plan strategy by having our employees
perform construction inspection. This saved approximately $75,000 in annual cost
5. Rates were set in accordance with state and federal laws to ensure we maintain a high
level of service.
6. Worked with the Board to establish periodically review of fund balance
7. Worked with the Board to adopt and implement policies and procedures concerning
the payment of bills
8. Restructuring saved over $500,000 in operating cost per year
9. Renegotiated agreement with the City of Palo Alto which could reduce the cost of
borrowing
10. Evaluated the valuation methodology of the Other Post Employment Benefit (OPEB)
which saved approximately $150,000 annually.
11. Complied with transparency initiative of good governance
12. Renegotiated consulting services contracts which saved approximately $100,000 per
years in professional services cost and over $2.5 million in capital cost
13. Improved plan checking process to further reduce the risk of sanitary sewer overflow.
14. Performed value chain analysis in order to identify where improvements are needed,
these helped identify alternatives to how we structure deals with our partners. This has
improved our level of service and customer’s satisfaction.
15. Performed a review of the master plan which saved over $12 million in capital cost to
rate payers
16. Performed a review of the connection fees to ensure developers pay their fair share
17. Re-established lateral replacement fund to help our citizens maintain their service
connections
18. Board members attended conferences for development
19. Performed organizational chart evaluation
20. Performed personal policy review and update
21. Worked with our strategic partners to reduce project cost
22. Worked with our strategic partners to share equipment and training