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Home My WebLink AboutAGENDA BACKUP 09-17-98 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS :::::;:I.:..:::::::.~;:I.:.~.I:.::"a.:i~::i::i!:~it::i!I!~:::l:::::::::::: BOARD MEETlsNGeOpFtember 17, 1998 ~~~~~~::::~~~~t~..::::~\jj~j\j\::::.\llrj~m.m\\fI.~j~jf~j?~ Page 1 of 2 NO. 4. CONSENT CALENDAR i. DATE TYPE OF ACTION September 1, 1998 ACCEPT CONTRACT WORK SUBJECT ACCEPT CONTRACT WORK FOR THE BOLLINGER CANYON LEACH FIELD ABANDONMENT PROJECT, DISTRICT PROJECT NO. 4797, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION SUBMITTED BY Thomas A. Trice, Senior En Assistant ISSUE: Construction has been completed on the Bollinger Canyon Leach Field Abandonment Project (DP 4797) in San Ramon, and the work is now ready for acceptance. BACKGROUND: The Bollinger Canyon leach field was established more than 30 years ago as a temporary system to serve septic tank facilities in the area. It was intended to be an interim sewering solution until a main sewer could be extended from Crow Canyon Road. The main extension has been delayed, and the design life of the leach field has reached its end. All customers that were using the leach field were disconnected last year and are using septic tanks for disposal of the wastewater. The leach field abandonment project consisted of installing 16 trench dams along the sewer line, grouting the 4-inch (leach line) pipe, and securing all the manholes. The existing 8- and 10-inch sewer lines are being preserved for possible connection to the District's sewer system at Crow Canyon Road in the future. This project is described in more detail on pages CS-31 through CS-33 in the 1997-98 Capital Improvement Budget (CIB). On June 18,1998, the Board authorized the award of a Contract for construction of the project to Ranger Pipelines, Inc. of San Francisco. Notice to Proceed was issued on July 27, 1998. The Contract work was completed on August 21, 1998. The remaining work consists of minor punch list items which do not affect the project acceptance. The total authorized budget for the abandonment project, including the cost of engineering design, District forces, testing services, contractor services, etc. is $366,000. An accounting of the project costs will be provided to the Board at the time of the project close-out. It is appropriate to accept the Contract work at this time. RECOMMENDATION: Accept the Contract work for the construction of the Bollinger Canyon Leach Field Abandonment Project, District Project No. 4797, in San Ramon, and authorize the filing of the Notice of Completion. ---r;tr/ TAT ~ Wf13 INITIATING DEPARTMENTIOIVISlON HT H:\Design\PP\4797 Accept.T AT. wpd ,- .fo PROJECT AREA SYCAMO~t. VALLEY ~\) o D~ ~ 80,,~ ~ff -'- '-.-.-., ". , ". ", " " .,CO~ ". ~'" ,.,!4'~ '. , " " " " "\ c.~O~ ~ N , " \ " \ ./ ./ ./ (/../" #,a~ I I I , " " " " c: a> "0 -5 " '" V .J:> --- .<= u .8 '0 --- <to <D N '" -;;; >- en o u --- "" Central Contra Costa Sanitary District o I 2 I MILE ATTACHMENT BOLLINGER CANYON LEACH FIELD ABANDONMENT PROJECT DP 4797 1 ...., N ~ <to 0> 2! <:, =:i? ~cO EN ~ l;entral Contra Costa Sanitary District BOARD OF DIRECTORS ...... ... ...... ................... .. ... :!i!i:II&~llllli.ili:lllllfI!iiii.i!liiil!i BOARD MErnS~;tember 17, 1998 Page 1 of 2 NO. September 9, 1998 4. CONSENT CALENDAR j. DATE TYPE OF ACTION ACCEPT CONTRACT/AUTHORIZE NOTICE OF COMPLETION SUBJ ECT ACCEPT CONTRACT FOR 5kV FEEDER REPLACEMENT PROJECT, DISTRICT PROJECT 6096, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION SUBMITTED BY James L. Belcher, Senior Engineer INITIATING DEPTIDIV Plant Operations/Maintenance ISSUE: Construction has been completed on the 5kV Feeder Replacement Project, District Project 6096, and the work is now ready for acceptance. BACKGROUND: This phase replaced the electrical feeders from Substation 40 to MVMC 48 "A" and 48 "B," which were installed circa 1975. These feeders supply the 2,300-volt power from the Filter Plant to the facilities north of the clear well, including the back wash pumps and the recycled water pumps. In February 1998, the existing "B" feeder failed. The "A" feeder temporarily supported the Filter Plant's needs during this outage. Both "A" and "B" feeders have now been replaced with new cables. The Board of Directors authorized the award of a construction contract for this work in the amount of $118,735 to California Electric Company on April 16, 1998. The contractor was issued a Notice to Proceed, which was effective July 6, 1998, with a required contract completion date of September 4, 1998. The District took beneficial use on August 19, 1998, with all work being completed on September 2, 1998. It is appropriate to accept the contract work at this time. The total authorized budget for this project is $ 216,650. An accounting of this project will be provided to the Board of Directors at close out. RECOMMENDATION: Accept contract work for construction of the 5kV Feeder Replacement Project, District Project 6096, and authorize the filing of the Notice of Completion. JMK &-.J Nft: 5:\8105\ 1998\6096\CloseOutPP.wpd co 0> ~ Eo.. .~ ~ o ' -","" ..,0 o \) c: en ~ "0 '" 0> o '" --- u ., "e --- '" 0> o '" --- c o Q. --- :;, Central Contra Costa Sanitary District 5 KV FEEDER REPLACEMENT DISTRICT PROJECT 6096 PROJECT LOCATION o '" :t PROJECT SITE Is If c ~ f5 ! ;{ II (j II II ATTACHMENT 1 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS Page 1 of 3 September 1 7, 1998 NO. 4. CONSENT CALENDAR k BOARD MEETING OF September 10, 1998 TYPE OF ACTION COMPLETE DISTRICT ANNEXATION 142 DATE SUBJECT ORDER COMPLETION OF DISTRICT ANNEXATION 142, GALE RANCH II, BOUNDARY REORGANIZATION, SAN RAMON AREA SUBMITTED BY Dennis Hall, Associate Engineer INITIATING DEPT/DIV Engineering/Environmental Services ISSUE: A resolution by the District's Board of Directors must be adopted to finalize District Annexation 142. BACKGROUND: On March 6, 1998, Shapell Industries (SI) filed with the Local Agency Formation Commission (LAFCO) a request for a Boundary Reorganization for a 2,017.02 acre property SI owns in Dougherty Valley, known as Gale Ranch II. On May 13, 1998, LAFCO held a hearing to consider Sl's request. During the public hearing, LAFCO reviewed and considered the Environmental Impact Report (EIR) that was prepared by Contra Costa County. LAFCO approved Sl's request for annexation to CCCSD and to Dublin San Ramon Services District (DSRSD) and had previously (April 19, 1997) amended this District's S.O.1. to include the subject territory and adjacent territory located to the east known as Windemere Ranch. LAFCO designated CCCSD to be the Conducting Authority and authorized CCCSD to conduct the annexation proceedings without notice and hearing because the territory is uninhabited and has the consent of 100 percent of the land owners. This District Annexation has been conditioned by LAFCO. SI is required to present evidence to LAFCO's Executive Officer that SI has funded the purchase of its permanent water entitlement and that all lawsuits challenging the water transfer have been concluded by settlement or final judgement and that such settlement or judgement could not be overturned. If evidence of such funding, satisfactory to the Executive Officer, is not presented within 12 months of the date of LAFCO's approval (May 13, 1998) the reorganization will terminate and not become effective. This condition also appears in the District's resolution. Following a review of state laws addressing Conducting Authority proceedings and the California Environmental Quality Act (CEOA), staff from LAFCO and CCCSD concur that the Conducting Authority process is exempt from CEOA. Ordering of completion of Gale Ranch II Boundary Reorganization will establish the Board of Director's independent finding that this action is exempt from CEOA. JSM INITIATING DEPARTMENTIDIVISION DH p~~ CWS It//! tJ/ U:\PPr\Hall\Gale Ranch Il.wpd DATE September 10, 1998 Page 2 of 3 SUBJECT ORDER COMPLETION OF DISTRICT ANNEXATION 142, GALE RANCH II, BOUNDARY REORGANIZATION, SAN RAMON AREA RECOMMENDATION: Adopt a resolution certifying a review of information, adopting California Environmental Quality Act findings, and ordering completion of Gale Ranch II Boundary Reorganization. U:\PPr\Hall\Gale Ranch Il.wpd 4/8/98 ~ o ,. o .- - ...... ..-.......... ~ , " COS1~ , "'1R~ -- , 00"'. - .:....t:.O~ . - ~\..,..'" en en )> c.. )> :0 )> o [ 1 2 3 -. ~ SCALE IN MILES :rJ o ~. :0 o )> o ~ = ~ Haci~nda Business Park DISTRICT ANNEXATION. NO. 142, - GALE RANCH II BOUNI;>>ARVREORGANIZATION.j SAN.RAMON.AREA 2523-9/88 ~ Central Contra Costa Sanitary District Page 1 of 2 BOARD MEETING OF September 1 7, 1 998 NO. 4. CONSENT CALENDAR 1 September 10, 1998 TYPE OF ACTION COMPLETE DISTRICT ANNEXATION 144 DATE SUBJECT ORDER COMPLETION OF DISTRICT ANNEXATION 144, SCHOOL SITE, BOUNDARY REORGANIZATION, SAN RAMON AREA SUBMITTED BY Dennis Hall, Associate Engineer INITIATING DEPT/DIV Engineering/Environmental Services ISSUE: A resolution by the District's Board of Directors must be adopted to finalize District Annexation 144. BACKGROUND: On March 6, 1998, Shapell Industries (SI) filed with the Local Agency Formation Commission (LAFCO) a request for a Boundary Reorganization for a 80.05 acre property SI owns in Dougherty Valley, known as the "School Site." On May 13, 1998, LAFCO held a hearing to consider 51's request. During the public hearing, LAFCO reviewed and considered the Environmental Impact Report (EIR) that was prepared by Contra Costa County. LAFCO approved 51's request for annexation to CCCSD and to East Bay Municipal District (EBMUD). LAFCO amended EBMUD's S.O.I. to include the subject school site during the March 6, 1998 hearing and had previously (April 19, 1997) amended this District's S.O.\. to include the subject territory and adjacent territory located to the east known as Gale Ranch II and Windemere Ranch. LAFCO designated CCCSD to be the Conducting Authority and authorized CCCSD to conduct the annexation proceedings without notice and hearing because the territory is uninhabited and has the consent of 100 percent of the land owners. Following a review of state laws addressing Conducting Authority proceedings and the California Environmental Quality Act (CEOA), staff from LAFCO and CCCSD concur that the Conducting Authority process is exempt from CEOA. Ordering of completion of the School Site Boundary Reorganization will establish the Board of Director's independent finding that this action is exempt from CEOA. RECOMMENDATION: Adopt a resolution certifying a review of information, adopting California Environmental Quality Act findings, and ordering completion of the School Site Boundary Reorganization. .y tV INITIATING DEPARTMENT/DIVISION DH JSM U:\PPr\Hall\Gale Ranch II.Ann 144. wpd Blackhawk ~ o ,. o ...... ........... . ~ , " COS1~ " OO~:~- ~op.. .- p..\..~ o o c C) :I: m :0 OUBLlN ~ (J) (J) )> c.. )> :c )> o I 1 2 3 + ~ SCALE IN MILES :c o )> c ~ ~ Haci~nda Business Park DISTRICT ANNEXATION NO. 144 . SCHOOL SITE BOUNDARY REORGANIZATION SAN RAMON AREA 2523-9/88 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS Page 1 of 1 BOARD MEETING OF NO. September 1 7, 1 998 4. CONSENT CALENDAR m. DATE September 1, 1998 TYPE OF ACTION AUTHORIZE ATTENDANCE AT OUT OF STATE MEETING SUBJECT AUTHORIZE THE ATTENDANCE OF GAIL CHESLER, ASSOCIATE ENGINEER, AT THE MEETING SPONSORED BY US EPA AND WATER ENVIRONMENT FEDERATION ON THE ADVANCE NOTICE OF PROPOSED RULEMAKING FOR THE WATER QUALITY STANDARDS REGULATION ON SEPTEMBER 24-25, 1998 SUBMITTED BY Curtis Swanson, Principal Engineer INITIATING DEPT/DIV Engineering/ Environmental Services ISSUE: Approval by the Board of Directors is required for unbudgeted travel outside of California or if the expense will exceed $500. BACKGROUND: The U.S. EPA and the Water Environment Federation have scheduled three public meetings for discussion of the Advance Notice of Proposed Rulemaking (ANPRM) for the Water Quality Standards Regulation. The closest of the three meetings will be held in Phoenix, AZ. The purpose of the meetings is to provide a structured discourse on the future of the water quality standards regulation and program. This process is intended by the host organizations to assist stakeholders in preparing comments on the proposed regulation during the 180-day period allotted for public comment which ends in early January 1999. The ANPRM requests public comment on potential revisions to the basic water quality standards program regulation governing state adoption and EPA approval of water quality standards under Section 303(c) of the Clean Water Act. The ANPRM also requests comments on changes in policy and guidance that support the regulation. Nationally recognized experts will lead discussions on core issues of the ANPRM including antidegradation and mixing zones/ water quality criteria. These issues are pivotal in the District's permitting process. The participation in this workshop by Dr. Chesler is requested so that the concerns of the District are represented. Dr. Chesler chairs the District's Regulatory Committee and a major part of her job responsibilities are tracking and evaluating the effects on CCCSD of evolving Federal and State regulations and legislation. Participation in this specific meeting was not anticipated at the time the training budget was completed, however there are adequate funds in the Environmental Services Division's technical training, conference, and meetings account to cover costs of attendance. RECOMMENDATIONS: Authorize the attendance of Gail Chesler, Associate Engineer in the Environmental Services Division, at the September 24-25, 1998, USEPA/ WEF public meeting on the Advance Notice of Public Rulemaking for the Water Quality Standards Rulemaking in Phoenix, AZ at a cost not to exceed $500. jl#! 8/31/98 JSM T:\ TP Planning\Chesler\PPGCHES. WPD ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS . .. ,.. . ...... . ..... .,..... . ............. ................ . ............. ....... . .............. ::::::::::::::I!.'~..I. "1.~&,i;I:~:~::~I!:;~~~.I!.I..:,:,:;~:~:~:~:~:~:~:~:~:~~~:~ BOARD MEETING OF ~:~:~:~:~:~:~:I[~~BII::::J~II::::i.!I:~:~:;:I[~.I1~::::::::::::::.;:;:;:;:;:;:;:;:;:;:; Page 1 of 1 NO. September 10, 1998 4. CONSENT CALENDAR n. DATE TYPE OF ACTION AUTHORIZE CONFERENCE ATTENDANCE SUBJECT AUTHORIZE TIMOTHY POTTER, SOURCE CONTROL SUPERINTENDENT, TO ATTEND THE ANNUAL WATER ENVIRONMENT FEDERATION CONFERENCE (WEFTEC) IN ORLANDO, FLORIDA ON OCTOBER 3-7,1998 SUBMITTED BY Jarred Miyamoto-Mills, Principal Engineer INITIATING DEPTtOlV Engineering/Environmental Services ISSUE: Approval of the Board of Directors is required for unbudgeted travel outside of California, or when unbudgeted travel expense will exceed $500. BACKGROUND: In April, the District's Source Control/Pollution Prevention Program was nominated by Regional Water Quality Control Board staff for the EPA's 1998 National Pretreatment Program Excellence Awards. These awards were established to acknowledge agencies that demonstrate their commitment to the protection and improvement of the Nation's waters through their operation of exemplary pretreatment programs. Staff prepared and submitted a comprehensive application package in May. An awards review committee composed of national pretreatment experts evaluated the applications. The EPA recently notified us that the District has been selected to receive the first place award in the 21-50 Significant Industrial Users category. The award will be presented at the annual Water Environment Federation conference being held in Orlando, Florida from October 3 through October 7. It is proposed that Timothy Potter, Source Control Superintendent, attend the conference and accept the award on behalf of the District, at a cost not to exceed $1,500. Mr Potter leads the District's Source Control and Household Hazardous Waste Collection Facility groups, two of the principal activities being honored by the award. In addition to receiving the award, Mr. Potter will be able to attend several of the conference sessions focusing on source control/pollution prevention topics, and confer with the managers of other leading pretreatment programs. Mr. Potter's attendance at WEFTEC was not included in this year's Environmental Services Division technical training and conferences budget, so this authorization may result in the account being over expended by $1,500. RECOMMENDATION: Authorize Timothy Potter, Source Control Superintendent, to attend the Water Environment Federation annual Conference in Orlando, Florida on October 3-7, 1998, at a cost not to exceed $1,500. INITIATING DEPARTMENTtOlVlSlON #4 JM2 JSM 4@l Central Contra Costa Sanitary District BOARD OF DIRECTORS iiiiiiilll.lliiiiiiil.lliiii:iiiiii:'JI BOARD MEETI;~~tember 17, 1998 Page 1 of 5 NO. 6. BIDS AND AWARDS a DATE TYPE OF ACTION September 10,1998 AUTHORIZE AWARD/AUTHORIZE AGREEMENTS SUBJECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MONTEREY MECHANICAL COMPANY, AND AUTHORIZE PROFESSIONAL SERVICE AGREEMENTS FOR THE ASH HANDLING IMPROVEMENTS PROJECT, DISTRICT PROJECT NO. 7186 SUBMITTED BY Don Berger, Associate Engineer INITIATING DEPT/DIV Engineering Department/Capital Projects Division ISSUE: On September 1, 1998, sealed proposals were received and opened for construction of the Ash Handling Improvements Project, District Project No. 7186. The Board of Directors must authorize award of the contract or reject bids within 50 days of the bid opening. Authorization by the Board of Directors is required for the General Manager-Chief Engineer to execute professional service agreements for amounts greater than $50,000. BACKGROUND: The District's ash handling system was installed as part of the original secondary treatment plant construction back in the 1970s. Due to problems with the initial furnace start-up, the ash system was not brought on-line until 1986. Proper functioning of the ash system is critical for the successful operation of the furnaces. The ash system must provide continual, uninterrupted removal of ash from the furnaces to prevent upsets and potential permit violations. On-going problems with equipment breakdowns, ash pipe plugging, and a lack of back up equipment has made it increasingly difficult to keep the ash system in service. This has adversely affected furnace operation and made it difficult to meet air permit requirements. In 1996, the Furnace Continuous Improvement Team (CIT) completed an evaluation of potential furnace improvements and identified the ash system as the highest priority. The Furnace Process Redesign Team (PRT) subsequently developed recommendations for improving the ash system and upgrading to newer more reliable technology. The Ash Handling Improvements Project consists of the installation of new ash filtration (dust collection) equipment, vacuum blowers, ash conveyance piping (designed to prevent plugging), and associated valving and instrumentation. These modifications will increase reliability and decrease operations and maintenance costs. This project also includes improvements to the furnace control panels and conversion of the ash control system to programmable logic controllers (PLCs) to replace obsolete equipment. The PLC conversion was originally part of the Multiple Hearth Furnace Operation Improvements Project (DP 6126) and was combined with the Ash Handling Improvements Project because of its relationship to the ash system. Attachment 1 shows the combined project location. DEB INITIATING DE~ION L:\Position Papers\BERGER\7186Award.wpd 4/8/98 DATE September 10, 1998 Page 2 of 5 SUBJECT AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MONTEREY MECHANICAL COMPANY, AND AUTHORIZE PROFESSIONAL SERVICE AGREEMENTS FOR THE ASH HANDLING IMPROVEMENTS PROJECT, DISTRICT PROJECT NO. 7186 The design of the Ash Handling Improvements Project was completed by Montgomery Watson. The Engineer's prebid estimate for construction was $1,150,000. The project was advertised on August 10 and 17, 1998. Four bids were received and publically opened on September 1, 1998. A summary of these bids is shown in Attachment 2. The Capital Projects Division has conducted a technical and commercial evaluation of these bids and determined that Monterey Mechanical Company is the lowest responsible bidder with a bid amount of $995,000. Construction management and contract administration will be performed by District staff. Inspection will be performed by NPG Engineering. An agreement for $62,500 has been negotiated with NPG Engineering to provide inspection services. Montgomery Watson will provide technical support services including shop drawing review, preparation of design clarifications, and office engineering. An agreement for $60,000 has been negotiated with Montgomery Watson to provide technical support services during construction. The allocation of funds required to complete this project, as shown in Attachment 3, is $1,533,000. This project is included in the Fiscal Year 1998-99 Capital Improvement Budget (CIB) beginning on page TP-19 for the Ash Handling Improvements Project and on page TP-63 for the Multiple Hearth Furnace Operation Improvements Project. Staff has conducted a cash flow evaluation of the Sewer Construction Fund and concluded that adequate funds are available for this project. Staff has concluded that this combined project is exempt from the California Environmental Quality Act (CECA) under District CECA Guidelines, Section 18.2, since it involves minor alterations to existing sewerage facilities with negligible increase in capacity. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CECA. RECOMMENDATIONS: 1. Authorize award of a construction contract in the amount of $995,000 for construction of the Ash Handling Improvements Project, DP 7186, to Monterey Mechanical Company, the lowest responsible bidder. 2. Authorize the General Manager-Chief Engineer to execute a professional service agreements for $62,500 with NPG Engineering for inspection services and for $60,000 with Montgomery Watson to provide technical support services during construction of the Ash Handling Improvements Project, DP 7186. L:\Position Papers\BERGER\ 7186Award.wpd 4/8/98 Page 3 of 5 ~ N , o 200 ~--...! FEET IMHOFF DRIVE ) OJP~ 0]0 s: :r: o Tl Tl SOLIDS CONDITIONING BLDG (Location of Furnace Ash Handling System) \J r )> n IT1 ~'i:- (, Q;- Y; 0~ :1-S GQ;-~ 0 ~ /~ (4 // # Central Contra Costa Sanitary District ATTACHMENT ASH HANDLING IMPROVEMENTS PROJECT DISTRICT PROJECT 7186 PROJECT LOCATION 1 PAGE 4 of 5 ATTACHMENT 2 ASH HANDLING IMPROVEMENTS PROJECT DISTRICT PROJECT NO. 7186 Central Contra Costa Sanitary District SUMMARY OF BIDS LOCATION Martinez. California ENGINEER EST. $ 1.150.000 No BIDDER BID PRICE 1 Monterey Mechanical Company $ 995,000 8275 San Leandro Street Oakland CA 94621 2 GSE Construction 1,050,200 1 020 Shannon Court Livermore CA 94550 3 Kirkwood-Bly, Inc. 1,099,000 PO Box 3339 Santa Rosa CA 95402 4 N.V. Heathorn, Inc. 1 ,284,394 2846 Chapman Street Oakland CA 94601 BIDS OPENED BY Isl Joyce Murphy DATE 09/01/98 SHEET NO. ...L OF ---1-. L:\Position Papers\BERGER\7186Award.wpd 4/8/98 PAGE 5 of 5 ATTACHMENT 3 ASH HANDLING IMPROVEMENTS PROJECT DISTRICT PROJECT NO. 7186 POST -BID/PRECONSTRUCTION ESTIMATE NO. ITEM DESCRIPTION TOTAL PERCENT OF ESTIMATED CONSTRUCTION COST 1. CONSTRUCTION a. Construction Contract b. Contingency at 12 percent c. PLC Programming d. Materials and Supplies TOTAL CONSTRUCTION 2. CONSTRUCTION MANAGEMENT a. District Forces . Construction Management . Survey · Project Engineering · Plant Operations Department . Legal · Engineering Support SUBTOTAL b. Consultants · Construction Support Services - Montgomery Watson . Inspection Services - NPG Engineering . Operations and Maintenance Manual . Materials Testing SUBTOTAL TOTAL CONSTRUCTION MANAGEMENT 3. TOTAL CONSTRUCTION PHASE COST 4. TOTAL PRE-BID EXPENDITURES a. Planning b. Design and Bidding SUBTOTAL 5. TOTAL ESTIMATED PROJECT COST 6. ALLOCATIONS TO DATE 7. ADDITIONAL ALLOCATIONS NEEDED TO COMPLETE PROJECT L:\Position Papers\BERGER\7186Award.wpd $ 995,000 120,000 35,000 21.000 $1,171,000 100.0 $ 87,000 1 ,000 25,000 30,000 5,000 5.000 $ 153,000 13.1 $ 60,000 62,500 9,500 1.000 $ 133,000 11.4 $ 286,000 24.5 $1,457,000 124.5 $ 30,000 157.000 $ 187,000 15.9 $1 ,644,000 140.4 $ 111,000 $1,533,000 4/8/98 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS . .. .... . ..... ... . ... ....... :1::::111111111:1:::1.11::::::::::. BOARD MEETS~;tember 17, 1998 Page 1 of 6 NO. 9. ADMINISTRATIVE a. DATE TYPE OF ACTION September 1, 1 998 AMEND CONFLICT OF INTEREST CODE SUBJECT ADOPT A RESOLUTION AMENDING EXHIBIT A, DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES OF THE DISTRICT CONFLICT OF INTEREST CODE, AND ADOPT AN ORDINANCE REVISING THE FILING DATE OF ANNUAL STATEMENTS OF ECONOMIC INTERESTS SUBMITTED BY Joyce E. Murphy, Secretary of the District INITIATING DEPTI1JIV Administrative JSS.UE: A need exists to update Exhibit A, Designated Positions and Disclosure Categories of the District's Conflict of Interest Code, and to amend the filing date of annual Statements of Economic Interests. BACKGROUND: The Political Reform Act of 1974 and the Central Contra Costa Sanitary District Conflict of Interest Code require that the Board of Directors adopt a list of designated positions of officers and employees who make, or participate in making, decisions that could have a material effect on any personal financial interest. It has been the practice of the District to review the designated positions on a periodic basis and to amend the District Conflict of Interest Code as necessitated by any changed circumstances, including the creation of new positions, deletion of positions, and relevant changes in the duties assigned to existing positions. Exhibit A, Designated Positions and Disclosure Categories of the District Conflict of Interest Code, was reviewed by staff and an amendment is proposed to reflect the current organizational structure of the District. It is recommended that the newly created positions of Senior Control Systems Engineer, Process Control Systems Engineer, and Maintenance Reliability Engineer be added to the list of designated positions, and that the positions of Control Systems Engineer, Senior Construction Inspector, Supervising Source Control Inspector, and Administrative Analyst be deleted from the list of designated positions. It is further recommended that the position of Deputy General Manager be deleted from the list of "Other Officials Who Manage Public Investments" and that the position of Director of Administration be added in its place, reflecting a change in job title. It is also recommended that the position of Director of Engineering be added to the list of "Other Officials Who Manage Public Investments" because of that position's oversight of the Capital Improvement Budget and bond financing. These changes reflect the current organizational structure of the District and the duties assigned to each position. The above changes have been made and are reflected in Exhibit A, Designated Positions and Disclosure Categories of the District Conflict of Interest Code, submitted for the Board's approval. After approval by the Board, the proposed amendment to Exhibit A of the District Conflict of Interest Code will be submitted to the Board of Supervisors, the code reviewing body. The amendment takes effect upon its approval by the Board of Supervisors. KLA INITIATING DEPARTMENTI1JIVISION September 17, 1998 Page 2 of 6 ADOPT A RESOLUTION AMENDING EXHIBIT A, DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES OF THE DISTRICT CONFLICT OF INTEREST CODE, AND ADOPT AN ORDINANCE REVISING THE FILING DATE OF ANNUAL STATEMENTS OF ECONOMIC INTERESTS Finally, the filing period for state and local officials and employees designated in a conflict of interest code has changed from April 30 to April 1. It would be appropriate to amend the District's Conflict of Interest Code to reflect this change. RECOMMENDATION: Adopt the attached resolution amending Exhibit A, Designated Positions and Disclosure Categories of the Central Contra Costa Sanitary District Conflict of Interest Code; authorize the Secretary of the District to submit a copy of said code amendment to the Contra Costa County Board of Supervisors for approval; and adopt the attached ordinance revising the filing date of annual statements of economic interests. RESOLUTION NO. 98- A RESOLUTION AMENDING EXHIBIT A, DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT CONFLICT OF INTEREST CODE WHEREAS, Section 2.20.020 of the Central Contra Costa Sanitary District Code provides that the Board of Directors shall from time to time establish by resolution designated positions of officers and employees deemed to make, or participate in the making of, decisions which may foreseeably have a material effect on a financial interest. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT Exhibit A, Designated Positions and Disclosure Categories of the Central Contra Costa Sanitary District Conflict of Interest Code, a copy of which is attached, is hereby approved and adopted for the District, subject to approval by the Board of Supervisors of the County of Contra Costa; and THAT the Secretary of the District is hereby authorized and instructed to submit a copy of such Code amendment to the Board of Supervisors of the County of Contra Costa and to request the Board of Supervisors to approve said Code amendment in accordance with Government Code Section 87303. PASSED AND ADOPTED by the Central Contra Costa Sanitary District Board of Directors this 17th day of September 1998, by the following vote: AYES: NOES: ABSENT: Members: Members: Members: President of the Board of Directors Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to form: Kenton L. Aim District Counsel "EXHIBIT A" DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT CONFLICT OF INTEREST CODE Designated Positions 1 . Secretary of the District 2. Counsel for the District 3. Manager 4. Consultant* 5. Control Systems engineer Pf. @~jto~grmgtftt9~:::\1Y$t.gm~::IQg~n~:~r 271 etQ9~$.$.:YQo.t.rg!$.y~t~m~M:~Qgio.~~r I.:~ fillhlt~nIQP~:B~~i.Ip.i.!~t.Y::i.nQi.hg~r 9. Real Property Specialist 10. Permit and Services Technician 11 . Principal Engineer 12. Senior Engineer 13. Associate Engineer 14. Survey Party Chief 15. Management Information Systems Administrator 16. Land Surveyor 17. Engineering Support Supervisor 10. Senior Construction Inspector 19. Collection System Inspection Supervisor 20. Construction Inspector 21 . Source Control Inspector 22. Senior Source Control Inspector 23. Supervising Source Control Inspector 24 Source Control Program Superintendent 25. Pollution Prevention Program Superintendent 26. Principal Buyer 27. Senior Buyer 28. Buyer 29. Materials Coordinator III 30. Plant Operations Superintendent 31 . Field Operations Superintendent 32. Plant Maintenance Superintendent 33. Laboratory Superintendent 34. Pumping Stations Superintendent 35. Accounting Supervisor 36. Administrlltive Anlllyst Disclosure Categories 1,2,3,4,5,6,7,8 1,2,3,4,5,6,7,8 1,2,3,4,5,6,7,8 1,2,3,4,5,6,7,8 1,2,3,4,5,6,7,8 1)g~I~If:~U9:~7H~ lig~:a~4W~U~{Zl~ '~2f:i~lnl~p{t)1. 1,2,3,4,5,6,7,8 1,2,3,4,5,6,7,8 2,3,4,5,6,7,8 2,3,4,5,6,7,8 2,3,4,5,6,7,8 2,3,4,5,6,7,8 1,4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,0 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,0 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,8 4,5,6,7,0 ..EXHIBIT A" (Continued) * Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the Code subject to the following limitation: The General Manager-Chief Engineer may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The General Manager-Chief Engineer's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. Other Officials Who Manage Public Investments: In accordance with Government Code Section 87200, certain District officers are required to disclose - upon assuming and leaving office, and annually while in office - their investments, income, and interests in real property by way of Fair Political Practices Commission (FPPC) Form 700, Statement of Economic Interests. Those positions designated to file Form 700 are those "directing the investment of public monies, formulating or approving investment policies, approving or establishing guidelines for asset allocations, or approving investment transactions." It has been determined that the positions listed below manage public investments and will file a Statement of Economic Interests pursuant to Government Code Section 87200 (Form 700): 1. Member, Board of Directors 2. General Manager-Chief Engineer 3. Deputy General Mal,ager a~ g!t~pt9W@1t\gmHj~'t.tf.P'gg 411 m!r~QtQr::::Qf::l.;gg:i.n~~ftg9: 5. Controller Category Index 1 Investments 2 Interests in Real Property 3 Interests in Real Property and Investments Held by Business Entities or Trusts 4 Income (Other than Gifts or Loans) 5 Income (Loans) 6 Income (Gifts) 7 Business Positions 8 Commission Income, Income and Loans to Business Entities or Trusts and Income from Rental Property ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AMENDING SECTION 2.20.040 D. OF THE DISTRICT CODE REVISING THE FILING DATE OF ANNUAL STATEMENTS OF ECONOMIC INTERESTS The Board of Directors of the Central Contra Costa Sanitary District does hereby ordain as follows: SECTION 2.20.040 PLACE AND TIME OF FILING Section 2.20.040 of the Central Contra Costa Sanitary District Code is hereby revised and amended to read as follows: D. Annual statements shall be filed no later than April 1 by all designated employees. Such statement shall cover the period of the preceding calendar year. This ordinance shall be an ordinance and general regulation of the District and shall be published once in the Contra Costa Times, a newspaper of general circulation, published and circulated within the Central Contra Costa Sanitary District and shall be effective upon the expiration of the week of publication. PASSED AND ADOPTED by the District Board of the Central Contra Costa Sanitary District this 1 rh day of September, 1998, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Kenton L. Aim District Counsel ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS 111,111:1":11111.111.1111111111111111111:111111111111 S;;t~E~~~~ 17, 1998 Page 1 of 2 NO. 10. ENGINEERING a. DATE September 10, 1998 TYPE OF ACTION EXECUTE AGREEMENT SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH CH2M-HILL FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH THE SEWER RENOVATION STRATEGY PROJECT, DISTRICT PROJECT 5907 SUBMITTED BY Joseph Pomroy, Assistant Engineer INITIATING DEPT/tIIV Engineering/Environmental Services ISSUE: Board authorization is required for the General Manager-Chief Engineer to execute professional agreements for more than $50,000. BACKGROUND: The District's Collection System Planning Program is a capital budgeting tool designed to identify, prioritize, estimate costs, and establish schedules for capital improvement projects needed in the District's nearly 1,500 miles of main, trunk and interceptor sewers, pumping stations, and forcemains. A portion of this Capital Planning Program is the Small Sewer Renovation Strategy that will develop strategy and budget estimates for long-term renovation and replacement of the District's sewer mains, pipes that are 10-inches and less in diameter. CH2M-HiII was selected using the District's standard consultant selection process to complete the Small Sewer Renovation Strategy. CH2M-HiII completed the first phase of the work in May 1998 that determined the District had the available data to create a predictive model which will act as a foundation for the Small Sewer Renovation Strategy. Staff recommends that CH2M-HiII be retained to assist the District with the following tasks to complete the Small Sewer Renovation Strategy: . Develop a pipe defect and failure guide to standardize types of pipe defects and their severity. . Confirm the amount of usable CCTV data needed for the four pipe material categories to be used in developing the predictive model and determine any CCTV data gaps. . Create a predictive model that will develop the relation between pipe attributes (site, material, location, age) and pipe condition and determine the average annual capital replacement costs to maintain the sewer system at a specified level of service. . Provide the predictive model to the District so future data can be included and predictions of small diameter sewer condition and future capital projects costs can be refined. The cost estimate for CH2M-Hill to complete all the above work is $190,000. JSM INITIATING DEPARTMENTIDIVlSlON f//f U:\PPr\CH2M-Hillppr. wpd DATE September 10, 1998 Page 2 of 2 SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH CH2M-HILL FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH THE SEWER RENOVATION STRATEGY PROJECT, DISTRICT PROJECT 5907 RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute an agreement with CH2M-HiII consultants to complete the Small Sewer Renovation Strategy at a cost not to exceed $190,000. U:\PPr\CH2M-Hillppr. wpd ~ ("entral Contra Costa Sanitar) District BOARD OF DIRECTORS . .. ........ ..., ... ..., :::'[.ll1slmimmi:::::..I.III;::....; BOARD MEETING OF ;:;:;:;.,.:0;:;:::::::;:;.;.;:;::::" ..;...::";....,... ;;;.;. ;;;;',,;\;;;;),,"" .:::;:::::...:::::::::.......:::::;........ ....;.;......;;;;;;;;;;;;;;;;; September 17, 1998 Page 1 of 28 NO. 13. BUDGET AND FINANCE a. DATE TYPE OF ACTION September 10, 1998 AUTHORIZE AMENDMENT ADOPT DECLARATION SUBJ ECT AUTHORIZE AMENDMENT TO THE DEFERRED COMPENSATION PLAN AND ADOPT THE DECLARATION OF TRUST SUBMITTED BY Debbie Ratcliff, Controller INITIATING DEPTIDIV Administrative/Finance & Accounting JSSUf: Board authorization is needed to amend the Deferred Compensation Plan Document and adopt the Declaration of Trust. BACKGROUND: The District established a Section 457 Deferred Compensation Plan covering all full- time employees in January 1976. The Plan is administered by the District's Deferred Compensation Plan Advisory Committee. In the past, federal law established Deferred Compensation Plan assets as the assets of the Plan sponsor (Le. the District), thus making the Plan assets subject to general creditors of the District. On August 20, 1996, President Clinton signed into law the Small Business Job Protection Act. This law established several provisions which impact certain features of our Section 457 Deferred Compensation Plan. As a result, the following list of reforms has been amended or added to the District's Deferred Compensation Plan Document: . 457 Assets Held in Trust - Plan sponsors must establish a trust arrangement to ensure assets for 457 Deferred Compensation Plans are protected and used exclusively for Plan participants and their beneficiaries. In the case of an employer bankruptcy, assets would be protected from the employer's creditors. For 457 Plans in existence on the date of enactment, a trust must be established by January 1, 1999. . Indexed Maximum Contributions - This provision allows the opportunity to contribute more money each year to the 457 Plan. The annual contribution will be indexed to increase in $500 increments based on changes in the Consumer Price Index. . 457 Distribution Date Change - This provision allows a one-time forward change to beginning payment date elections. Currently, participants have to make a one-time irrevocable decision. DR INITIATING DEPARTMENTIDIVlSION 3d S :\ADMIN\POS P APER\DefCompAmend. wpd DATE September 10, 1998 Page 2 of 28 SUBJ ECT AUTHORIZE AMENDMENT TO THE DEFERRED COMPENSATION PLAN AND ADOPT THE DECLARATION OF TRUST . De minimis Withdrawals - This provision allows a one-time employer or employee-initiated distribution of 457 accounts with balances of $5,000 or less which are inactive for at least two years. A copy of the strike-out and underline version of the amended Deferred Compensation Plan Document is included as Attachment I. Also, the Declaration of Trust is included as Attachment II. . Both of these documents were prepared by Lee Trucker from the firm of Trucker · Huss who specializes in benefit law. All three Deferred Compensation carriers (i.e., ICMA Retirement Corporation, lIT Hartford, and Washington Mutual Bank) have received and approved both documents. RECOMMENDATION: The Deferred Compensation Plan Advisory Committee recommends that the Board approve the amended Deferred Compensation Plan Document and adopt the Declaration of Trust. S :\ADMIN\POSP APER\DefCompAmend. wpd Page 3 of 28 ATTACHMENT I CENTRAL CONTRA COSTA SANITARY DISTRICT DEFERRED COMPENSATION PLAN Jaimary 1, 1998 Page 4 of 28 CENTRAL CONTRA COSTA SANITARY DISTRICT DEFERRED COMPENSATION PLAN (As amended and restated effective January 1, ~ 1998) SECTION 1. Name. The name of this Plan is the Central Contra Costa Sanitary District Deferred Compensation Plan (the "Plan") which is hereby adopted as amended and restated effective January 1, .w&91998. The Plan was amended and restated in its entirety to incorporate certain provisions of the Small Business Job Protection Act of 1996. eemply with. the IntemaJ Revefllle Cede ef 1986, as ameaded, as allow for other pennissible ehanges. nd to make eertain other clarifying and eonf{)rming ehanges. SECTION 2. Purpose. The primary purpose of the Plan is to attract and retain personnel by permitting them to enter into agreements with the Central Contra Costa Sanitary District which will provide for deferral of payment of a portion of their annual compensation until death, retirement, termination of employment or other event, as provided herein, in accordance with the provisions of Sections 53212-53214 of the Government Code of the State of California and Section 457 and other applicable sections of the Internal Revenue Code of 1986. SECTION 3. Definitions. For purposes of this Plan, the following words and phrases when used and capitalized herein shall have the following meanings: 3.1 <<Account" means the individual account of a Particinant to which are . . credited deferrals of Comnensation and the allocable share of earnine:s. gains and losses and chane:es in the value of the assets of the Trust Fund allocable to such Account. 3.2 "Code" shall mean the Internal Revenue Code of 1986 as amended 3.3 "Compensation" shall mean the total of all amounts which would be paid by the Employer to or for the benefit of an Employee (if he or she were not a Participant in the Plan) for services performed by the Employee during the period of time he or she is a Participant. 3.4 "Deferred Compensation" shall mean that portion of an Employee's Compensation which the Employee has elected to defer in aocordance with the provisions of the Plan, subject to the following limitations: (a) The maximum amount that may be deferred under the Plan for the taxable year of a Participant shall not exceed the lesser of (1) $7,500, as ad justed in accordance with Section 457 (e )(15) of the Code or (2) 33 1/3 percent of the Participant's Includible Compensation. #4052 v4 2 #4052 v4 Page 5 of 28 (b) Subject to the provisions of Section ~ 3.4(c) , for one or more of a Participant's last three taxable years ending prior to a pPartieipaat's retir-ement the year in which a Participant retires. the maximum amount that may be deferred under the Plan shall be the lesser of (1) $15,000 or, (2) the sum of the limitation in 3.()3(a) 3.4(a) above and so much of the limitation which has not been utilized since January 1, 1979. (c) 3.6(e) For any iBdiyidaals .....l1o are particif)9.fits in. m.ore t:flaR one Plan, tlie maximl:llR amouRt of compematioR deferred for all plans duriRg aftY taxilble year shall not exeeed $7,500 (as m.odified by the adj1:lstmcat provided under SubsectioR g. ace) of these definitioBS). 3.6(d) For aRY indhiduals who are partieif)ants in 9.R LR.C. Section 493(b) PlaR, the amounts excl1:lded in any.taxable year 1:lnder such PlaBS shall be treated as amounts deferred for p1:lfposes of Subsections 3.6(a), ce), aOO (e) of these definitioBS, aM the amoulHs deferred under Subsections 3.6(a), (b), and (e) of these definitions for any year of service shall be treated as amounts excluded under LR.C. Sections 403(b)(2)(;\)(ii) In applying the limitation of $7,500 of Section~ 3.4(a) and the limitations of ~ 3.4(b) for a Participant during the Participant's taxable year, the following shall be treated as amounts deferred: (1) Amounts deferred during such taxable year under any other plan described in Code Section 457(b); (2) Amounts excluded from gross income during such taxable year under a tax-sheltered annuity program described in Code Section 403(b); (3) Amounts excluded from gross income during such taxable year pursuant to a qualified cash or deferred arrangement described in Code Section 40 1 (k) or a simplified employee pension described in Code Section 408(h), except for amounts excluded under a rural co-operative plan as defined in Code Section 401 (k)(7); (4) Amounts with respect to which a deduction is allowable for such taxable year by reason of a contribution described in Section 501 (c )(18) of the Code. (5) Amounts contributed pursuant to Section 8. 3 #4052 v4 Page 6 of 28 3.5 "Employee" shall mean regular full-time employees who perform services for the Employer and regular part-time holding limited positions for a full Employment Year employees who perform services for the Employer. 3.6 "Employment Year" shall mean the calendar year, except that the first year of an Employee hired in mid-year shall be a short year beginning with the date of employment and ending on the date the employment year otherwise ends. See. 3.8 "Disability" metiflS the iflability of a partieit>8.fl:t to eRgage iRltis usual oecupatioR by reaSOR of a medieally deoormifl.a.l:lle physical or mental impairment as determined BY the employer on the basis of adyice from a physician or physicians. 3.7 "Employer" shall mean the Central Contra Costa Sanitary District. 3.8 "Includible Compensation" shall mean the remuneration for services performed for the Employer which, after taking into account the applicable provisions of the Code, is currently includible in gross income for Federal tax purposes for the Participant's Employment Year. 3.9 8ECTION~The Plan .!!. Participant" shall mean an Employee who has elected to participate in the Plan. 3.10 "Participation Agreement" shall mean the agreement executed and flIed by an Employee with the Employer pursuant to Section 4 of the Plan, in which the Employee elects to become a Participant in the Plan. 3.11 "Plan Year" shall mean the calendar year. 3.12 "Required Beginning Date" shall mean April 1 of the calendar year following the calendar year ~ in which the Participant attains age 70 ~ or (ii) the Participant retires, whichever is later. 3.13 "Trust" shall mean the le2al entity created by the Trust Agreement provided for herein and adopted by the Employer as nrovided in Section 10. 3.14 "Trust Fund" shall mean all nronertv and income adjusted for earnint!s and losses. payments and reasonable exvenses. held by the Trustee under the Trust Agreement established bv the Emplover hereunder for the nurposes of holdint! and mana2int! the assets of the Plan. .6 3.15 "Trustee" shall mean the Central Contra Costa Sanitary District. 4 #4052 v4 Page 7 of 28 SECTION 4 Participation in the Plan 4.1 Enrollment periods for Voluntary Contributions. (a) When the Plan is fust made available, an Employee shall have thirty (30) days from the date voluntary participation in the Plan is offered to him or her to effect an election to participate. Such election shall be effective in the first month after the date on which his or her Participation Agreement is filed with the Employer. (b) Any person who becomes an Employee after this Plan is first made available on a voluntary basis shall have the option, within thirty (30) days after becoming an Employee to effect an initial election to participate under this Plan in the first month after the date on which his or her Participation Agreement is filed with the Employer. (c) Any Employee who does not file an initial election, pursuant to (a) or (b) above, shall have the right to elect participation during monthly enrollments. Such election shall be for pay periods in the first month after the date on which his or her Participation Agreement is filed with the Employer. (d) At the time of the Participation Agreement hereunder, a Participant must agree to defer a minimum of$5.00 per month of Compensation ffi order to ee eligible f{)f the Employer's oontrieutioBs as set forth in SeetioR 4 .2(b ). (b) The Distriet shall eentrib1:lte for aaoh partieij3ant te the Plafl as aefiReEl hereiR a 5mB eqaal t8 the pereeRtage efthe pThe ElTlf3loyer shall eontribute te the Plafl an am01:lflt aR hehalf of eae1:J. Partieipant equal to the pereeRtage of the Partieipant's meRW)' s~ary '.Ymeh wm:11d have othep...ise beeR paid to the Sooial Seemly Plan, as sale pereeatage may he ehanged Hem time to time. SECTION 5. Deferral of Compensation. 5.1 During each Employment Year in which the Employee is a Participant in the Plan, the Employer shall not pay the Employee his or her full. Compensation but shall defer payment of such part of his or her Compensation as is specified by the Employee in the Participation Agreement which he or she has executed and filed with the Employer and subject to the limits set forth in Section ~ 3.4 herein. Compensation shall be deferred in equa~ ~ounts over each pay period of the Employee's Employment Year. 5 Page 8 of 28 5.2 All deferrals of Comoensation shall be credited to the respective Account established for each Particioant. 5.3 All deferrals of Comoensation shall be authorized by the Participant's written Particioation Agreement. made by payroll deduction. deducted from the Particioant's Comoensation without reduction for any taxes or withhold in!!: (except to the extent reauired by law or re!!:ulations) and delivered to the Trustee by the Emoloyer as soon as reasonably practicable followins: the date FICA taxes would have been withheld from such Comoensation in accordance with the usual payroll practices of the Emoloyer if Participants had been covered by the Federal Social Security system durin!!: the applicable payroll period. 5.4 No contribution by the Emoloyer to the Trust-Fund nor any earnin!!:s therefrom shall revert to the Emoloyer unless a contribution is made by the Employer under a !!:ood faith mistake of fact as indicated by the facts and circumstances surroundin!!: such mistake. In the event of such a mistake. an amount shall be returned to the Employer within one year after pavment of the contribution equal to the excess of the amount contributed over the amount that would have been contributed had there not occurred a mistake of fact. Earnin!!:s attributable to such excess amount shall not be returned but losses attributable to such amount shall be used to reduce the amount to be returned. SECTION 6. Administration of the Plan. 6.1 The Plan shall be administered by the Employer, who.shall have the sole authority to enforce the Plan and shall be responsible for the operation of the Plan in accordance with its terms. The Employer shall determine the time, manner, the amount of payments of benefits pursuant to Section 7 and shall determine all questions arising out of the administration, interpretation and application of the Plan, which determination shall be conclusive and binding on all persons. 6.2 The Emoloyer shall establish and maintain a seoarate account for each Particioant and shall maintain records for such Particioant Accounts which reflect the value and interest of each Participant in the Trust Fund.,:" ~ 6.3 On executing the Participation Agreement, the Employee shall des~gnate.ftis or her in-vestment oejeeti'le. The employer mtlY ifl.vest e.motlflts of deferr~d compeIl5ation in fixed and/or '1/H'iable lmfluity cOfltracts, 'l/hiche\'er in the #4052 v4 6 #4052 v4 Page 9 of 28 employer's sole judgment '.vill best aemeve the elBflloyee's objective. the investment of his or her Account amont! the oPtions provided under the Plan. A Participant may chan~e his or her election as to investment funds with respect to his or her existint! account and future Deferred Compensation by filint! the prescribed form with the Employer or by use of anv prescribed telephonic system. 6.4 See. G.4 The eEmployer may, but is Flot req1iired to, invest deferred eompensation at least IBeathlyamoWlts of Deferred CompellSation in the in~/estment vehicles provided for in this Plan. .'\11 amounts of deferred eempensation, vlhether er not invested ey tke empleyer skaU at all times be and remain an asset efthe employer. e Plan whieh in the ERlflloyer's sole judgment 'Nill best achieve the Employee's All contributions under the Plan shall be held and invested by the Trustee as part of the Trust Fund. In its discretion. the Employer may subdivide the Trust Fund into two or more funds. each with a different title and a separate investment objective. Such funds shall be invested in such types of securities and other property of any kind or nature as the Employer shall from time to time authorize. ./\11 amounts of Deferrea CempensatioR, all property and rights purchased '.'lith such amounts, and aU income atlribl:ltable thereto, ,,,hether or net iWlested by the Employer shall remain, l:Ultil made available to a Participant or Beaefieiary, solely the property and rights of the Employer, subjeet only to the elaims of the Employer's general creditors. 6.5 Sec. a.5 }-Ieither this Plan ner any Particiflatien ~^.-g-reement nef any book aeeemlt shall ee aeemed to ereate a trust or el:lStodial aeemmt on behalf of or fer tke benefit af any flartieipant of the Plan or his beneficiaries. No partieiflaBt of the Plan or hisParticipant of the Plan or his or her beneficiaries. 1'1 e Partieipant of fue Plan or his or her beneficiaries shall haye, by reasen ef the Plan, Partieipatien ..^.-greement, or book aecount, any seel:1red or preferred interest in er ta any asSMs aftke empleyer. The eEmployer. The Employer sfta.ll kave anIy a eentmewal obligation t8 pay the Benefits Que tke pParticipa:llt under tke Plan. Within a reasonable time after the last day of each Plan Year. the Trustee shall report to the Employer in writint! the value of the Trust Fund as of the last day of the Plan Year. Except as otherwise provided by the Employer. such valuation shall be made upon the basis of the fair market value of the assets in the Trust Fund. and upon its approval by the Employer. shall be bindint! upon the Participants and all other persons interested in the Plan. If one or more separate investment funds have been established by the Em{)loyer as provided herein. each fund shall be valued separately and the net eamint!s or losses of each fund shall be allocated to each Account invested in each investment fund. 7 #4052 v4 Page 10 of 28 SECTION 7. Distribution of Benefits 7.1 Commencement of Distribution. (a) Except as provided in Section 7.4, distributions under the Plan shall commence no earlier than (i) when the Participant is separated from service (within the ~eaning of Section 457( d)(1 )(A)(ii) of the Code) or (ii) if the Participant so elects, the calendar year in which the Participant attains age 70~, and no later than the Participant's Required Beginning Date. A Participant shall, within sixty (60) days after the earlier of the date on which the Participant separates from service with the Employer or the Participant's attainment of age 70~, elect a form of aistribatioR permitted l:lD.aer SeetioR 7.2 aRa a time of commencement of his or her distribution from the Plan.! which time shall be no later tnB:B. ms or her Required .BegiIIBiag Date. earlier than 60. days from the date of the election. If no election is made. distribution will be made after such 60. day period as soon as administratively feasible. The Participant may choose any form of payment under Section 7.2 and if no such election is made when distribution is to commence. distribution will be made in a lump sum. (b) Effeeti~.'e January 1, 1997, e}(eept as proviaed in SeatioR 7.4, distributions ooaer the PlaR shall commenee no earlier than when the Partieipant is s8flaFated from serviee (v:ithin the meam.ng of SemioR 457 (d)(l)(:\)(ii) of the Code); and shall eommenee no later than the ParticipB:B.t's ReEl\*irea .Beginning Date. Prior to separation from serviae, the Partieipant may eleet the date tlpon 'Nrneh. distribHtioR ofbeaefits '.'Iill eommenee. Sl:lbsequent to separation from serviee, and priorDll Prior to the date distribution of benefits would otherwise commence ooder this SemioR pursuant to the Participant's election under Section 7.2(a). the Participant will have a one-time irrevocable election to determine defer to a later date the date upon which Elistrie1:ltioR af eeaefits v.'ill eemmeaee, or if the Partieipant previoliSly eleeteel sueR date, to ehaflge the Elate, l:lflOR ,,,hieh the distribution of benefits will commence. 7.2 Form and Duration of Distribution of Benefits. (a) Commencing with the date determined pursuant to Section 7.1, the full amount credited to a Participant's book aeC01:Hlt fllas or miBas sub5eqacRt hwestmeBt gains or 105505, bllt Account less any Federal or State Income Taxes required to be withheld, shall be distributed subject to Section 7 .2(b), to the Participant in anyone or more of the following forms; provided, however that if the Participant has. made no election of a form of distribution as of the date the distribution is to 8 #4052 v4 Page 11 of 28 be made under Section 7.1, distribution shall be made in the form described in Section 7.2(a), Option 1: Option 1. Lump sum payment. The total benefits payable in one cash payment. Option 2. Payments for a specified period. Amounts payable"in substantially equal installments over a period of three (3) to thirty (30) years, subject to the limitations set forth in Section 7.2(b). If the Participant has elected a payment option requiring installment payments, the Participant may also elect to have such payments made either monthly, quarterly, semi-annually or annually. Option 3. Life annuity. An annuity payable during the lifetime of the Participant or his or her Beneficiary if this option is selected. Option 4. Life annuity with period certain guaranteed. An annuity payable during the lifetime of the Participant, or his or her Beneficiary ,-if this option is selected, with the guarantee that if at his or her death payments have not been made for the guaranteed period as elected, payments will continue to the Beneficiary. The guaranteed period to be elected must be either ten (10), fifteen (15) or twenty (20) years. Option 5. Joint and survivor annuity. An annuity payment during the lifetime of the Participant and a secondary payee named by the Participant. (b) Payments made pursuant to Section 7.2(a), Option 2 shall be made over a period certain not to exceed the life or life expectancy of the Participant or the joint life or life expectancy of the Participant and his or her designated Beneficiary and at times specified by the Secretary of Treasury which are not later than the times determined under Section 401(a)(9)(G) of the Code. 7.3. Death. (a) In event of death of any Participant, either before or after separation from service, the full amount credited to his or her book aCeOl:lflt Account, less any Federal or State Withholding Taxes required by law, shall be distributed to his or her Beneficiaries in the manner designated in the Participant's Participation Agreement. If the Participant has made no election of the time or form of distribution as to a Beneficiary, such Beneficiary shall designate the time and manner of distribution to himself or herself. Choices of the form of distribution of benefits shall be as provided in Section 7.2, provided, 9 #4052 v4 Page 12 of 28 however, that if payments begin before the death of the Participant, the manner of distribution to the Beneficiary must be at least as rapid as the method of distribution being used as of the date of the Participant's death; provided further, that if distributions do not begin before the death of the Participant, then the Participant's book aeeOliBt Account shall be paid to the Participant's Beneficiary by December 31 of the calendar year which contains the fifth anniversary of the Participant's death, or if the designated Beneficiary so elects, over a period not to exceed the lesser of 15 years or the life or life expectancy of such aeneficiary beginning no later than December 31 of the calendar year immediately following the calendar year in which the Participant dies; provided further, that if the designated Beneficiary is the Participant's spouse, distributions may be made over a period not to exceed the remaining life expectancy of the spouse. (b) If neither the Participant nor the Beneficiary has made an election of the time or form of distribution, payment to the Beneficiary shall be made in a lump sum sixty (60) days after the later of the date of the Participant's death or the date on which the Participant's Beneficiary is identified pursuant to Section +b4 11.2. 7.4 Unforeseeable Emergency. In the event of an unforeseeable emergency affecting a Participant, the Participant may apply to the Employer for a withdrawal from the Plan. "Unforeseeable emergency" means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that constitute an unforeseeable emergency depend upon the facts of each case, but in any case, the withdrawal shall be limited to that sum necessary to alleviate the hardship to the Participant, shall be in a lump sum, and shall not be the cause of any other distribution of benefits to the Participant. 7.5 In-service Distributions. Notwithstandin2: the provisions of this Section. a Participant may elect. or the Emplover may distribute. without the consent of the Participant. the Participant's entire Account if all of the followin2: conditions are met: (a) the value ofthe Participant's Account does not exceed the dollar limit under Section 411(a)(11)(A) of the Code. presently $5.000: 10 Page 13 of 28 (b) no amount has been deferred under the Plan with respect to the Participant durin!!: the two-year period endin!!: on the date of distribution: and (c) there has been no prior distribution under the Plan to the Participant pursuant to this subsection. SECTION 8. Employer Participation. Notwithstanding any other provision of this Plan, the Employer may make additiol'Hll deposits in the Deferred ComperuiatioB fund as additional compcflSatioB contributions to a Participant's Account for the services rendered by the Employee to the Employer during an employment year Emplovrnent Year. SECTION 9. Nonassignability. 81tbject to 8ectioalO, to the fullest extent permitted by law, the The interest of a Participant in the contractual obligation of the Employer, his or her Account established by the Plan; shall not be assignable in whole or in part, directly or by operation of law or otherwise, in any manner, and no right or interest of a Participant in the Employer's eOlltraetual obligation his or her Account shall be liable for or subject to any obligation or liability of such Participant. If a court of competent jurisdiction determines bv way of jud!!Il1ent. order. or approval of a marital settlement ai!l"eement that the amount credited to a Participant's Account or any portion thereof constitutes community propertv of the Participant and his or her snouse or former spouse (hereinafter referred to as the "Alternate Pavee") orrirooertv which is otherwise subiect to division between the Participant and the Alternate Payee. a division of such propertv shall not constitute a violation of this Section. provided that no distribution is required to be made to any person at a time or in a manner not permitted under the Plan. A separate account will be established for the Alternate Payee and there shall be initially credited thereto an amount eaual to the amount assismed to the Alternate Payee under the jud!!D1ent. order. or marital settlement agreement. Such account shall be subject to all provisions of this Plan and the following: (a) If the Alternate Payee reauests the ril!ht to direct the investment of his or her interest. the Alternate Payee may chanl!e the investment of the account by executinl! and minI! the prescribed form in accordance with the provisions of the Plan: and (b) Distributions from the account shall commence no earlier and no later than the dates applicable under Section 7.1 to the account of the Participant to whom the jud!!Il1ent. order. or marital settlement agreement relates: and (c) The amount payable under Section 7.3(a) upon the death of the Alternate Payee shall be in the form of a lump sum to the Alternate Payee's Beneficiary or Beneficiaries. or if there" are . #4052 v4 11 Page 14 of 28 none. to the Alternate Payee's estate. within the time sDecified in Section 7.3(b). (d) Distributions under Section 7.4 cannot be based uoon an Alternate Payee's unforeseeable emer!!ency or financial hardshiD. SECTION 10 - Establishment of Trust Fund. Concurrently with the adoption of this Plan. the Emplover shall adopt a Trust A!!reement providin!! for the administration of the Trust Fund by the Trustee thereof and containin!! provisions with respect to the followin!!: (a) Powers and authority otthe Trustee for the retention. accounting and disbursement of the assets of the Trust Fund; (b) Limitations on the liability of the Trustee; and . ( c) Authority of the EmDloyer to settle the accounts of the Trustee on behalf of all persons havinl! any interest in the Trust Fund from time to time. The Trust Agreement shall be deemed to form a part of this Plan and all rights or benefits which accrue to any person under this Plan shall be subiect to all the terms and Drovisions of such Trust A!!reement. Any conflict between the terms of this Plan and Trust Al!reement regardinl! the duties of the Trustee shall be decided accordin!! to the terms of the Trust A!!reement. SECTION 19. Faeility 0f Payment. If any Partiei13ant termiaates his or her employm.eat v:ith an 1:Inflaid debt OV,qng to the Empleyer, and Beglee;s er refuses to li~idate the Boot by any eti1er means '",hen due and 11130R dem.and, the EFB.}'lleyer shall be eatitled te eollect the am.Ol:IDW dl:le frem the Deferred Com.pensation owed to the PartioipaBt under the Plan. . SECTION 11 - Miscellaneous. Limits. Neither the estahlishmeRt of the PlaR BOr aRY modifieatieR thereof, BOr the establishment of 8:BY beek aeeooBt, B6r Eke payment af 8:BY beaefiffi, shall he eOI15trl:led as giviRg to liB)' Partieitlant or ather persoR liBY legal or eql:laahle right agamst the Employer ex-e~t as herein flre'lietea; 8:Ba, in any eveRt, shall the teIlB5 of employmem of aay Employee or Partieitlant be maaified or in any "I'-flY be affeetea hereby. ConditioR of PlaR. It is a eoBditiaH of this Plllfl, aOO each Employee by participating hereia eXflressly agt'ees, that he or sbe shall look solely to the geHeral assets of the Employer for the paymeRt of any beaefit to which he or she is eRtitled ander the Plan. 11.1 Governing law. This Plan shall be construed, administered, and enforced according to the laws of the State of California. to the extent such laws are not preempted by federal law. #4052 v4 12 #4052 v4 Page 1 5 of 28 11.2 Designation of Beneficiaries. Each Participant shall have the right, on a form provided by the Employer, to designate beneficiaries to receive any benefit to which said Participant may be entitled in the event of his or her death prior to the complete distribution of benefits. Such designation shall become effective when received by the Employer and must be received prior to the Participant's death. If no such designation is in effect on a Participant's death, his or her Beneficiary shall be his or her estate or if no executor or administrator is appointed within six (6) months after the Participant's death, the Employer shall direct said benefits to be paid in the following order: spouse of the Participant, lineal descendants, lineal ancestors, blood relatives. SECTION 12. - Amendment and Termination. 12.1. The Employer may at any time and from time to time modify, amend, or terminate the Plan in whole or in part (including retroactive amendments) or cease deferring compensation pursuant to the Plan, by delivering to each Participant a written copy of such modification, amendment, or termination or of a notice that it ceases deferring compensation; provided, however, the Employer shall not have the right to reduce or affect the value of any Participant's boole aee01:lftt Account or any rights accrued under the Plan prior to such modification, amendment, termination, or cessation. 12.2. In the event of the termination of the Plan by the Employer under Section 12.1, the value of each Participant's book account Account shall be distributed to the Participant. The amount, method, and time of payment shall be determined as provided in Section 7. 13 Page 16 of 28 ---------------- COMPARISON OF FOOTERS ------------------ -FOOTER 1- -FOOTER 2- 10 #27894052 v4 #4052 v4 14 Page 17 of 28 ATTACHMENT II DECLARATION OF TRUST OF CENTRAL CONTRA COSTA SANITARY DISTRICT DEFERRED COMPENSATION PLAN January 1, 1998 Page 18 of 28 TABLE OF CONTENTS Page Article I Introduction ....... ... ... ....... ........... ....... .......................... ........ ................. ........ ..... ..... 1 Article II Definitions......................... ........... .............................. ........................................... 1 Article III Trust Fund.. .......................... ........... ....... ...... .... .... ........ .............................. ........... 1 Article IV Powers and Duties of the Trustee ......................................................................... 1 4.01 Investment Authority of the Trustee ......................................................... 1 4.02 Limits on Trustee Discretion..................................................................... 3 4.03 Appointment of an Investment Manager................................................... 3 4.04 Participant Direction................................ ................................................. 4 4.05 General Discretionary Powers of Trustee ................................................. 4 Article V Taxes and Compensation ....................................................................... ............... 5 5.01 Taxes.............................. .................... ....................................................... 5 5.02 Expenses of the Trustee ....... ............ .............. ......... ........... ....................... 5 Article VI Distribution of Benefits. ....................... .... ........................ ....... ...... ............ ....... ..... 5 6.01 Lump Sum and Installment Distributions ................................................. 5 6.02 Annuity Payments and Insurance Benefits................................................ 6 Article VII Accounting...................... .......................... ................. ................................ ....... .... 6 Article VIII Resignation, Removal and Substitution of Trustee.......................................:..:.... 6 8.01 Resignation....................... ..... .......... ............. .............. ......................... ..... 6 8.02 Removal..................... .......... ........... ......... ................. ................................ 7 Article IX Amendment of Declaration of Trust ..................................................................... 7 Article X Settlement of Disputes ........................................................................ .................. 7 10.01 Settlement by Court of Competent Jurisdiction.........~.............................. .7 10.02 Indemnification of the Trustee .................................................................. 8 10.03 Notice..... ............. ......... .................. .......... ......... ........................................ 8 Article XI Non Assignment of Benefits ................................................................................. 8 11.01 Prohibition Against Assignment or Alienation of Benefits ...................... 8 Article XII General Provisions ...... ..... ....... ........... ............................................... ....... ........ ..... 8 12.01 Directions to the Trustee ........................................................................... 8 12.02 Dealing with Third Parties ~.....................................................................;. .8 12.03 Insurance Companies ..... ..................................................... ............. .... ..... 9 12.04 Jurisdiction of the Trust ................................................~............................ 9 12.05 Severability of Provisions. ........ ........ ................. ........ ............, ........... ........ 9 . 12.06 Gender and Plurals .................................................................................... 9 12.07 Commingling of Trust of Same Employer ..............................................:. 9 10658 Page 1 9 of 28 ARTICLE I INTRODUCTION The Central Contra Costa Sanitary District ("District") has created and adopted The Central Contra Costa Sanitary District Deferred Compensation Plan ("Plan") which Plan provides, in pertinent part, for a trust fund to implement the funding, custody and implementation of the benefits of the Plan. Pursuant to the Plan, the District hereby agrees to be the Trustee to hold, administer and deal with all money and property delivered to it as Trustee of the Plan hereunder upon the following terms and conditions. ARTICLE II DEFINITIONS All capitalized terms used in this Declaration of Trust shall have the same definitions as those terms have under Section 3 of the Plan. ARTICLE III TRUST FUND The Trustee shall receive any contributions paid in cash or other property acceptable to the Trustee. The Trustee shall have no duty to collect any contribution of the Employer or be concerned with the contribution amount or the application of any contribution formula. All contributions received, together with any earnings thereon, hereinafter collectively referred to as the Trust Fund, shall be held, invested, reinvested and administered by the Trustee pursuant to the terms of this Agreement without distinction between principal and earnings and without liability for the payment of interest thereon. ARTICLE IV POWERS AND DUTIES OF THE TRUSTEE Section 4.01. Investment Authority of the Trustee The Trustee is the fiduciary with authority to manage and control the assets of the Trust, except as otherwise provided herein; The Trustee shall have and shall exercise all of the rights and authority of a legal owner with respect to all property of the Trust including the power and duty to: (a) Invest and reinvest the Trust Fund, without distinction between principal and earnings, in any and all common stocks, preferred stocks, bonds, notes, debentures, mortgages and deeds-of trust, equipment trust certificates, real and- personal property wherever situated, insurance contracts of licensed insurance carriers, mutual funds and such other property, investments and securities of any kind, class or character. 7598 1 Page 20 of 28 (b) Sell for cash or credit, to grant options on, to convert, redeem, exchange for other securities or other property, or otherwise dispose of, any securities or other property at any time held by them. (c) Settle, compromise or submit to arbitration, any claims, debts or damages due or owing to or from the Trust, to commence or defend against suits or legal proceedings and to represent the Trust in all suits or legal proceedings. (d) Exercise any conversion privilege and/or subscription rights available in connection with any securities or other property at any time held by it; to oppose or to consent to the organization, consolidation, merger or readjustment of the finances of any corporation, company or association, or to the sale, mortgage, pledge or lease of the property of any corporation, company or association, any of the securities of which at any time may be held by it, and to do any act any time with reference thereto, including the exercise of 'Options, the making of agreements or subscriptions and the payment of expenses, assessments or subscriptions which may be deemed necessary or advisable in connection therewith and to hold and retain any securities or other property. (e) Exercise, personally or by general or by limited power of attorney, any right, including the right to vote, pertinent to any securities or other property held by them at any time. Notwithstanding the foregoing, the voting of proxies for securities held by the Trust is the responsibility ofthe party or parties which have investment management authority over the securities, unless the Trustee agrees in writing to retain the responsibility to vote proxies over those securities managed by an Investment Manager. (f) Manage, administer, operate, lease for any number of years, regardless of any restrictions made on the leases made by fiduciaries, develop, improve, repair, alter, demolish, mortgage, pledge, grant options with respect to or otherwise deal with any property or interest therein at any time held by the Trustee, to invest in deeds of trust, to raze old buildings and build new ones, to enter partnerships or trusts to hold title to any such real property with the aforesaid powers all upon such terms and conditions as may be deemed advisable. (g) Renew or extend or participate in the renewal or extension of any mortgage or deed of trust upon such terms as may be deemed advisable, and to agree to a reduction of the rate of interest on any mortgage or deed of trust or to any modification or change in the terms of any mortgage or deed of trust or guaranty pertaining thereto, in any manner to any extent that may be deemed advisable for the protection of the Trust Fund or the preservation of the value of the investment; to waive any default whether the performance of any covenant or condition of any mortgage or performance of any guaranty or to enforce any such default in such manner and to such extent as may be deemed advisable to exercise ~d enforce any and all rights to foreclosure, to bid on property for foreclosure, to take a deed in lieu of foreclosure with or without paying a consideration therefor in 7598 2 Page 21 of 28 connection therewith, to release the obligation on the bond secured by such mortgage or deed of trust and to exercise and enforce in any action, suit ot proceedings in law or in equity or rights and remedies in respect to any mortgage, deed of trust or guaranty. (h) Make, execute and deliver as Trustee, any and all deeds, leases, mortgages, deeds of trust, conveyances, contract waivers, releases or other instructions in writing necessary or proper for the accomplishment of any of the foregoing powers. (i) Transfer money to any trust established and maintained as a medium for the collective investment of funds of employee benefit trusts similar to the Trust Fund, including any such collective trusts established and maintained by a Fiduciary (including any affiliate of the Trustee), with respect to which this Trust is an eligible participant and the governing instruments and any amendments, of any such collective trust in which the assets of this Trust may be invested and reinvested, is incorporated and made a part hereof as if fully set forth herein. G) Appoint agents, custodians, or ancillary trustees as may be necessary or desireable. Section 4.02. Limits on Trustee Discretion The authority of the Trustee to exercise the powers described in Section 4.01 is subject to the proper directions of the Employer and, until communicated otherwise by the Employer, the Employer has full responsibility for the investment of the Trust Fund. The Trustee shall exercise the powers described in Section 4.01 only in accordance with the proper directions of the . . Employer which are not inconsistent with the Employer's investment policy for directed trusts, as may be established and amended from time to time. In addition to the powers described in Section 4.01 above, the Employer may direct the Trustee to invest in annuity contracts either on an individual or a group basis. Any dividends earned on annuity contacts shall be allocated to the Participant Account for whose benefit the contract is held. The Employer shall select the insurance company or companies with respect to . which such investments shall be made and shall direct such insurance company to notify the Trustee of such premiums due or to become due, the respective amounts of such premiums and the respective dates when the same are due. The Trustee shall forward copies of said notice to the Employer for its approval and direction to pay such premiums. If upon such notice to the Employer, it does not direct the Trustee to pay such premiums, the Trustee shall have no duty or liability with respect to the payment of any such premiums and shall be entitled to presume that the Employer has properly decided to permit such contracts to lapse. The Employer shall at all times be the owner or contract holder of such contracts and the beneficiary named thereunder. Section 4.03. Appointment of an Investment Manager The authority of the Trustee to manage and control the assets of the Trust may be subjected to the written direction of a qualified Investment Manager to manage, acquire and. 7598 3 Page 22 of 28 dispose of assets in accordance with such written directions, including the exercise of the powers described in Section 4.01. The Investment Manager may be a licensed insurance company, financial institution, or an entity or individual defined as an Investment Manager under Section 3(38) of ERISA. Upon written notice by the Employer that an Investment Manager has been appointed, the Trustee shall segregate those assets identified by the Employer to be under the management of the Investment Manager. The Trustee is authorized and entitled to rely upon the fact that said Investment Manager is authorized to direct the management, acquisition and disposition of the assets of the aforesaid Investment Manager accounts until such time as the Employer shall notify the Trustee in writing that another Investment Manager has been appointed in place of the Investment Manager named or in the alternative, that the Investment Manager named has been removed and the responsibility for the management, acquisition and disposition of Investment Manager accounts has been returned to the Trustee or has been assumed by the Employer. In the event that an Investment Manager has full authority and responsibility with respect to the management of, acquisition of and disposition of the trust assets then neither the Employer nor the Trustee shall be responsible in any way for any losses or other unfavorable results arising from the Trustee's compliance with the investment or management directions received by the Trustee from the Investment Manager. The Investment Manager may direct the Trustee to invest in annuity contracts in the same manner and under the same conditions as the Employer may under the provisions of Section 4.02. Section 4.04. Participant Direction Upon written notice properly executed and delivered to the Trustee, the Employer may subject the authority of the Trustee to manage and control the assets of the Trust to the written direction of each Participant. Each Participant shall then have the exclusive power to exercise control over assets in his Account through instructions to the Employer or to the representatives designated by the Employer for this purpose. The Trustee and any other fiduciaries with respect to the Plan shall thereafter be relieved of any and all fiduciary responsibility and liability with respect to the Participant's exercise of control over the assets in his Account. If any Participant fails to give the Trustee investment direction when such direction is due, the Employer shall assume responsibility over the assets in such Participant's Account until Participant direction is given. Section 4.05. General Discretionary Powers of Trustee Notwithstanding the foregoing the Trustee shall have general discretionary authority without requirement of approval by any other fiduciary to: (a) Invest in bank deposits; (b) Deposit cash to a non-interest bearing checking account as the Trustee may deem advisable for the purpose of meeting contemplated payments under the Plan; 7598 4 Page 23 of 28 (c) Hold any property, real or personal, in its own name or in the name of a nominee, with or without the addition of words indicating that such properties are held in a fiduciary capacity so long as on the records of the Trustee the properties are identified as belonging to the Trust; (d) Pay all taxes of any nature levied, assessed or imposed upon the Trust Fund and all reasonable expenses and attorney's fees necessarily incurred by the Plan and by the Trustee with respect to any of the foregoing matters; (e) Disclose the existence of the Trust when the Trustee's fiduciary capacity so reqmres; (f) Do all acts that the Trustee may deem necessary to carry out any of the powers set forth herein or otherwise in the best interest of the Trust Fund. ARTICLE V TAXES AND COMPENSATION Section 5.01. Taxes The Trustee shall immediately notify the Employer in writing of any tax or assessment levied against any portion or all of the Trust Fund. The Trustee shall not be required to bring any action or proceedings as to the validity in whole or in part of any such tax or assessment unless directed by the Employer and upon giving the Employer notice of the levy of any such tax or assessment the Trustee shall not be required to inquire into or question the validity of such tax or assessment. In the event the Employer desires to contest the validity in whole or in part of such tax or assessment the Employer shall give the Trustee notice within thirty (30) days of receipt of notice from the Trustee. The Trustee, upon receiving reasonable indemnity therefor from the Employer, shall take such steps as the Employer directs with respect to contesting the validity in whole or part of any such tax or assessment. The Trustee shall deduct from the charge against the Trust any tax or assessment paid by the Trustee which may be imposed upon the Trust Fund which the Trustee is required to pay. Section 5.02. Expenses of the Trustee The reasonable expenses of the Trustee in the administration of this Trust may be charged to the Trust Fund. The Trustee and the Employer will agree in advance on the fees which may be charged to the Trust Fund. 7598 5 Page 24 of 28 ARTICLE VI DISTRIBUTION OF BENEFITS Section 6.01. Lump Sum and Installment Distributions The Trustee shall make distributions of benefits at the time and in the form as directed in writing by the Employer or by an administrator designated by the Employer. Distributions shall generally be made in the form of the Trustee's check payable to the Participant or Beneficiary named by the Employer mailed to the address provided by the Employer or administrator. The Trustee shall not be responsible for the determination or calculation of benefits, the determination of the manner of distribution, nor the location of the Participant or Beneficiary if the Trustee's check is returned undelivered. The Trustee shall withhold any taxes, where appropriate, from distributions from the Plan and shall remit such taxes to the proper taxing authority. Section 6.02. Annuity Payments and Insurance Benefits The Employer or the administrator may direct the Trustee to purchase a non-transferable annuity in the name of the Participant or his Beneficiary from an insurer of the Employer's choice. The Trustee shall have no responsibility for the selection of the insurer, the determination of the form of the annuity or the amount of the annuity premium. The Trustee shall discharge his or her duty with respect to such annuity payments by executing the purchase form provided by the insurer and the tender of the Trustee's check for the amount of the premium payable to the insurer. ARTICLE VII ACCOUNTING The Trustee shall keep complete records and accounts of its administration of the Trust Fund. Within a reasonable time after the last day of each Plan Year, the Trustee shall report to the Employer in writing the activity of the Trust Fund for the Plan Year and the value of the Trust Fund as of the last day of the Plan Year, not including the amount of ~ontributions for the fiscal year received by the Trustee subsequent such date. Such valuation shall be made upon the basis of the value of the assets in the Trust Fund. Upon its approval by the Employer, such . valuation shall be binding upon the Employer, the Employer, the Participants and all persons interested in the Plan. ARTICLE VIII RESIGNATION, REMOVAL AND SUBSTITUTION OF TRUSTEE Section 8.01. Resignation The Trustee shall have the right to resign as Trustee of the Trust at any time upon delivery to the Employer of written notice of such resignation to take effect not less than ninety (90) days after delivery thereof, unless the Employer shall waive such requirement of notice. . Upon such resignation of the Trustee hereunder, the Employer shall appoint a SuccesSOr Trustee. In the event of failure or refusal of the Employer to appoint such a Successor within 90 days after the 7598 6 Page 25 of 28 date of such notice of resignation, the Trustee may secure the appointment of a Successor Trustee by a court of competent jurisdiction at the expense of the Trust Fund. Upon the appointment of a Successor Trustee and its written acceptance of such appointment and upon settlement of the Trustee's account by agreement with the Employer or by final adjudication of a court of competent jurisdiction and the payment to the Trustee of all the Trustee's fees and expenses then due and owing, the Trustee shall assign, transfer, convey and deliver to said Successor Trustee all of the Trustee's right, title and interest in the Trust Fund then held hereunder. Said Successor Trustee so appointed shall succeed and be vested with all of the powers, rights, discretions, obligations and immunities vested in and conferred upon the Trustee herein named under the provisions of this Declaration of Trust. Section 8.02. Removal The Trustee may be removed by the Employer at any time upon not less than sixty (60) days notice to the Trustee which shall be accomplished by delivery of a certified resolution of the Employer removing the Trustee and appointing a Successor Trustee. Upon the receipt of such resolution and acknowledgment by the Successor Trustee that the Successor Trustee has accepted its appointment and upon settlement of the Trustee's accounts by agreement with the Employer or by final adjudication of a court of competent jurisdiction and the payment to the Trustee of all of the Trustee's fees and expenses then due and owing, the Trustee shall assign, transfer, convey and deliver to said Successor Trustee all of its right, title and interest in the Trust Fund then held hereunder. Said Successor Trustee so appointed shall succeed to and be vested with all of the powers, rights, discretions, obligations or immunities vested in and conferred upon the Trustee herein named under the provisions of this Declaration of Trust. ARTICLE IX AMENDMENT OF DECLARATION OF TRUST The Employer alone shall have the right to terminate this Declaration of Trust by delivering to the Trustee a written copy of the instrument terminating the trust. The Employer shall have the right at any time to amend this Declaration of Trust in whole or in part by delivering to the Trustee a written copy of each instrument amending the Trust; provided however, that the duties and responsibilities of the Trustee shall not be substantially increased without its written consent. Nevertheless, no amendment shall divert any part of the Trust Fund to purposes other than the exclusive benefit of Participants or their Beneficiaries under the Plan and Trust nor shall any amendment have any retroactive effect so as to deprive any Participant of any benefit already vested. ARTICLE X SETTLEMENT OF DISPUTES Section 10.01. Settlement by Court of Competent Jurisdiction In the event that any controversy should arise between the Trustee and the Employer, and any Participant under the Plan or his Beneficiary and/or any other persons with respect to payment or delivery, the Trustee shall not be obligated to determine such controversy but may 7598 7 Page 26 of 28 insist that such controversy be determined by a court of competent jurisdiction. The Trustee shall not be obligated to make payment or delivery of such monies or property or to take any other action in connection with the matter in controversy until a fmal adjudication of such controversy shall have been made by a court of competent jurisdiction. The Trustee shall incur no liability by reason of so doing. Section 10.02. Indemnification of the Trustee In the event that a lawsuit or proceeding is filed against the Trustee arising out of or in any way connected with the Plan or Trust Fund or the management, operation, administration or conduct of the Plan or Trust Fund, all reasonable costs and expenses of the defense including attorneys' fees incurred by the Trustee in the defense of such suit or proceeding shall be paid from the Trust Fund, unless it shall be determined that the Trustee breached his or her duties under this Trust Agreement. Section 10.03. Notice The Trustee shall immediately notify the Employer upon receipt of notice of the filing of any lawsuit or proceeding against the Trustee arising out of or in any way connected with the Plan or Trust Fund or the management, operation, administration or conduct of the Plan or Trust Fund ARTICLE XI NON ASSIGNMENT OF BENEFITS Section 11.01. Prohibition Against Assignment or Alienation of Benefits Benefits provided under the Plan may not be anticipated, assigned (either at law or in equity), or alienated by a Participant or Beneficiary, either partially or wholly. Benefits under the. . Plan shall not be subject to attachment, garnishment, levy, execution or other legal or equitable process, either partially or wholly. All benefits payable under the Plan shall be paid by the Trustee only to the Participant or Beneficiary, except in the event of the total disability or incapacity of either, the Employer may, in its sole discretion, direct the trustee to pay benefits under the Plan to the legally authorized personal representative of the Participant or Beneficiary. ARTICLE XII GENERAL PROVISIONS Section 12.01. Directions to the Trustee The Trustee shall be entitled to rely upon in good faith upon any directions signed the Employer or its appointed delegate and any authorized signer of an Investment Manager or administrator and shall incur no liability for following such directions. 7598 8 Page 27 of 28 Section 12.02. Dealing with Third Parties Any third party dealing with the Trustee shall not be required to make any inquiry as to whether the Employer has instructed the Trustee or whether the Trustee is otherwise authorized to take or omit any action or to follow the application by Trustee of any money or property which may be paid or delivered to Trustee. Section 12.03. Insurance Companies The acts of the Trustee hereunder shall be binding and conclusive on any insurance company issuing any retirement annuity contract or guaranteed insured contract owned by the Trust. In the event of any conflict between the terms of the Plan and Trust Agreement and the terms of any insurance contracts held hereunder, the provisions of the Plan and Trust Agreement shall control. Any insurance company shall be fully authorized to rely upon and comply with any written request or direction given by the Trustee with respect to any such policy and the proceeds thereof and shall have no responsibility to inquire into such request or direction or whether it is in accordance with the provisions of this agreement. No insurance company shall be deemed a party to this agreement or liable for its validity or the performance of its provisions or for the application or distribution of any funds paid by such insurance company pursuant to the written direction of the Trustee. Section 12.04. Jurisdiction of the Trust This trust has been established and shallbe governed under the laws of the State of California except to the extent such laws have been preempted by Federal statutes. Section 12.05. Severability of Provisions In the event that any provisions of this Trust Agreement shall be held illegal or invalid for any reason, said illegality or invalidation shall not affect the remaining provisions of this Trust Agreement which shall be construed and enforced as if said illegal or invalid provisions had never been inserted. Section 12.06. Gender and Plurals The masculine gender shall include the feminine and neuter gender, the masculine pronoun shall include the feminine and neuter, the singular number the plural, and conversely, whenever appropriate. Section 12.07. Commingling of Trust of Same Employer At the written direction of the Employer, the Trustee may commingle the assets of the Plan with the assets of any other Plan maintained by the Employer and trusteed by the Trustee. 7598 9 Page 28 of 28 of IN WIlNESS WHEREOF, the undersigned have executed this instrument this _ day CENTRAL CONTRA COSTA SANITARY DISTRICT -, TRUSTEE: By: By: Name: Name_" Title: Title: 7598 10