HomeMy WebLinkAboutAGENDA BACKUP 10-15-98
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Central Contra Costa Sanitary District
BOARD OF DIRECTORS Page 1 of 2
BOARD MEET1NG OF
October 15,1998
NO.
4. CONSENT CALENDAR b.
DATE
lWE OF ACT10N
October 5, 1998
ACCEPT ANNEXATION FOR PROCESSING
SUBJECT
AUTHORIZATION FOR P.A. 98-11 (ALAMO) TO BE INCLUDED IN A FUTURE FORMAL ANNEXATION
TO THE DISTRICT
SU8MlTTED BY
Dennis Hall, Associate Engineer
INlTIArNG OEPT/DlV
Engineering Department/Environmental Services
Parcel
No.
Area
Owner I Address
Parcel No. & Acreage
Remarks
Lead
Agency
98-11
Alamo
(7704)
Norman Schlinger 1049 Pine
Lane, Lafayette, CA 94549
191-100-004 (3.76 Ac.)
Existing house with a
failing septic system;
must connect to the
public sewer system.
Project is exempt
from CEQA.
CCCSO
RECOMMENDATION: Authorize P.A. 98-11 to be included in a future formal annexation.
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INITlATING DEPARTMENT/DIVISION
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PROPOSED ANNEXATION
P.A.98-11
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Central Contra Costa Sanitary District
BOARD OF DIRECTORS
Page 1 of 2
October 1 5, 1 998
NO.
4. CONSENT CALENDAR c
BOARD MEETING OF
September 30, 1998
TYPE OF ACTION
ACCEPT CONTRACT WORK
DATE
SUBJECT
ACCEPT CONTRACT WORK FOR THE ROSSMOOR SEWER IMPROVEMENTS PROJECT, PHASE 4,
DISTRICT PROJECT NO. 5268, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION
SUBMITTED BY
Thomas A. Trice, Senior Engineering Assistant
INITIATING DEPT/DIV
Engineering Dept./Capital Projects Div.
1S.S.UE: Construction has been completed on the Rossmoor Sewer Improvements Project, Phase 4,
(DP 5268) in Walnut Creek, and the work is now ready for acceptance.
BACKGROUND: The Rossmoor Sewer Improvements Project, Phase 4, (DP 5268), was implemented
under the terms of an agreement between Rossmoor and the District. The agreement provides for the
District constructing new manholes and repairing the existing sewer system in phases prior to taking over
ownership, operation, and maintenance of the sewer mains. The work is being financed by a portion of
the capital improvement fees paid by the Rossmoor developer (UDC Homes) and a portion of the sewer
service charges paid by the homeowners of Rossmoor.
Phase 4 of the project consisted of installing 56 manholes and 13 rodding inlets on the existing sewer
mains, replacing approximately 1,000 lineal feet of deficient sewer pipe, and making six spot repairs.
Approximately 10,000 lineal feet of sewer mains were also cleaned and television inspected as part of
this project. This project is described in more detail on pages CS-80 through CS-82 of the 1998-99
Capital Improvement Budget.
On April 2, 1998, the Board authorized the award of a contract for construction of the project to
D. E. Bianchini, Inc. of San Ramon. Notice to Proceed was issued on May 11, 1998. The contract
work was substantially completed on September 25, 1998. The remaining work consists of minor punch
list items which do not affect the project acceptance.
The total authorized budget for the Phase 4 project, including the cost of engineering design, District
forces, testing services, contractor services, etc. is $400,000. An accounting of the project costs will
be provided to the Board at the time of project close-out. It is appropriate to accept the contract work
at this time.
RECOMMENDATION: Accept the Contract work for the construction of the Rossmoor Sewer
Improvements Project, Phase 4, District Project No. 5268, in Walnut Creek, and authorize the filing of
the Notice of Completion.
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ATTACHMENT
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(;entral Contra Costa Sanitary District
BOARD OF DIRECTORS
11111111111111111111:1111111111::1:11111 BOARD MEET~Gc7ober 15, 1998
Page 1 of 4
NO.
4. CONSENT CALENDAR
d.
DATE
TYPE OF ACTION
October 9, 1998
RECEIVE AUDITED FINANCIAL STATEMENTS
SUBJ ECT
RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,1998.
SUBMITTED BY
Debbie Ratcliff, Controller
INITIATING DEPTIOIV
Administrative/Finance and Accounting
.ISSUE: The audited financial statements of the Central Contra Costa Sanitary District for the fiscal year ended
June 30, 1998 are being submitted to the Board of Directors.
BACKGROUND: The firm of Hood and Strong, Certified Public Accountants, has completed its examination
of the District's financial statements for the fiscal year ended June 30, 1998, and has submitted the audited
financial statements and auditor's opinion thereon.
In the routine performance of their examination of the financial statements, the auditors evaluate the District's
internal accounting controls to determine the nature and extent of the auditing procedures required. Based on
their observations during the course of the examination, the auditors routinely advise District management of
any recommendations to improve the system of intemal accounting controls. There were no recommendations
for improvements this year.
The District's investment policy requires a performance evaluation every four years by its independent auditors
to determine whether the investment objective of achieving a market-average rate of return is being realized.
This investment policy states that the average return of three-month U.S. Treasury Bills will be used to
determine the market-average rate of return. Hood and Strong reviewed the investment performance for the
prior fiscal year and calculated the District's average rate of return to be 5.69 percent compared to the market-
average rate of return of 5.08 percent as noted in the Independent Accountants Report, Attachment I. The
District was successful in meeting its investment objectives.
The audited financial statements were reviewed in detail at a Budget and Finance Committee/Board
Workshop on October 7, 1998, which was attended by a quorum of the Board. At that meeting a question
was raised relative to the adequacy of the footnote dealing with the District's relationship with Central
Contra Costa Solid Waste Authority. Footnote No. 11 has been changed to include the amended language
requested by the Board. Also, in accordance with Government Code Section 53891, information from the
audit was used to prepare a report to the State Controller's Office by the annual deadline of September 30,
1998.
A copy of the audited financial statements has been received by the Board under separate cover.
RECOMMENDATION: Receive the audited financial statements for the fiscal year ended June 30, 1998.
DR
INITIATING DEPARTMENTIOIVlSlON
S :\ADMIN\POSP APER\AU DFIN .PP
9116/96
ATTACHMENT I
HOOD&!
STRQNG LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Accountants' Report
On Agreed-Upon Procedures
THE BOARD OF DIRECTORS
CENTRAL CONTRA COSTA SANITARY DISTRICT
Martinez, California
The following report enumerates the agreed upon procedures and results of procedures
applied to the investments and investment returns of CENTRAL CONTRA COSTA
SANITARY DISTRICT (the "District") on its temporary investments for the period July 1,
1996 through June 30, 1997, as shown in Schedule 1.
We have performed the procedures enumerated below, which were agreed to by the
DISTRICT, (the specified user), solely to assist you with meeting the performance evaluation
required by your investment policy effective January 1995. This engagement to apply
agreed-upon procedures was performed in accordance with standards established by the
American Institute of Certified Public Accountants. The sufficiency of the procedures
described below is the responsibility of the specified user of the financial report.
Consequently, we make no representations regarding the sufficiency of the procedures
described below either for the purpose for which this report has been requested or for any
other purpose.
The procedures and findings are as follows:
1. We obtained the closing average yield on three month (91 day) US Treasury bills for
each quarter ended June 30, 1996 through June 30, 1997.
The results of applying procedure 1 are reflected in Schedule 1
2. We computed the average yield on the three month (91 day) US Treasury bills for the
period July 1, 1996 through June 30, 1997 using the information obtained in procedure 1
as defined by the District's investment policy as the "market average rate ofreturn".
The results of applying procedure 2 are reflected in Schedule 1
3. We obtained the face value of investment balances and income earned from monthly
reports presented to the Board of Directors for the Self-Insurance and Sewer Construction
funds for each of the quarters ended June 30, 1996 through June 30, 1997.
The results of applying procedure 3 are reflected in Schedule 1
4. We agreed investment balances at June 30, 1996 and 1997 and investment income for the
year ended June 30,1997 to the District's general ledger.
Consultants and
Business Advisors
I IJ I Califorllla
SIl/lrI5IJIJ
_)'an Fran{is(o
CA 'Hili
415.78I.IJ7'!.J
fax 415.421.2971)
Sail Fraf1ris(Q
Mrnlo Park
No exceptions were noted in applying procedure 4.
5. We computed the average of the District's temporary investments held for the period June 30, 1996
through June 30, 1997 using the information obtained in procedure 3.
The results of applying procedure 5 are reflected in Schedule 1
6. We computed the average yield on the District's temporary investments for the period June 30, 1996
through June 30, 1997 using the average of temporary investments held, computed in procedure 5,
and income earned for the year ended June 30, 1997 obtained in procedure 3.
The results of applying procedure 6 are reflected in Schedule 1
We were not engaged to, and did not, perform an audit, the objective of which would be the expression of
an opinion on the specified element, accounts or items. Accordingly, we do not express such an opinion.
Had we performed additional procedures, other matters might have come to our attention that would have
been reported to you.
This report is the intended solely for the specified user listed above and should not be used by those who
have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their
purposes.
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August 7, 1998
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Central Contra Costa Sanitary District
BOARD OF DIRECTORS
Page 1 of 4
BOARD MEETING OF
October 1 5, 1 998
NO.
6. BIDS AND AWARDS a.
DATE
October 7, 1998
TYPE OF ACTION
REJECT BIDS
SUBJECT
REJECT ALL BIDS RECEIVED FOR THE CONSTRUCTION CONTRACT FOR THE 1998 STORM DAMAGE
PROJECT, DISTRICT PROJECT NO. 5205
SUBMITTED BY
Curtis W. Swanson, Principal Engineer
INITIATING DEPT/DIV
Engineering Department/Environmental Services
ISSUE: On September 24, 1998, sealed bids were received and opened for construction of the 1998
Storm Damage Project, District Project No. 5205. The Board of Directors must authorize award of the
contract or reject bids within 50 days of bid opening.
BACKGROUND: During the winter of 1998, storm damage occurred at three locations within the District
collection system (see Attachment 1). Bank erosion along Walnut Creek near Carmel Court in Walnut
Creek resulted in the edge of the bank moving closer to a 27-inch trunk sewer. At the second location,
a landslide exposed a portion of a manhole and left the edge of the landslide close to an 8-inch sewer
along Lost Valley Drive in Orinda. At the third location, storm flows damaged a trash rack and eroded
creek banks near a drainage culvert passing under the 27-inch trunk sewer that serves Moraga.
Plans and specifications were prepared by a joint team of District staff and two geotechnical engineering
consultants. The project was advertised for bid on September 15 and 21, 1998. The engineer's prebid
estimate for construction is $250,000. One bid in the amount of $439,169 was received and publicly
opened on September 24, 1998. A summary of bids is presented in Attachment 2.
The Engineering Department conducted a technical and commercial evaluation of bids and determined
that the lowest responsible bidder is Hillside Drilling Co. of Point Richmond for the amount of $439,169.
However, the sole bid received for this project is 75% greater than the engineer's estimate of $250,000.
Staff reviewed and verified the engineer's estimate. Staff has determined that the reason for the
unfavorable bid is that Hillside Drilling Co. and other potential bidders for the project are busy, with many
having a four to six month backlog of work. Other potential bidders were reluctant to commit to
additional work at this point in the year.
Staff recommends that all bids be rejected and that the project be rebid in Spring, 1999 when it is likely
that more bids will be received. Staff will proceed with the installation of temporary protection measures
(plastic sheeting, sand bags, drain lines, etc.) to secure the three sites for the winter. At the two sites
10/
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ROGER J. DOLAN
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U :\PPr\Kast\Storm Damage. 5205. 2nd. pp. wpd
4/8/98
DATE
October 7, 1998
Page 2 of 4
SUBJECT
REJECT ALL BIDS RECEIVED FOR THE CONSTRUCTION CONTRACT FOR THE 1998 STORM
DAMAGE PROJECT, DISTRICT PROJECT NO. 5205
where there has been earth movement, the amount of the sewer system which has been affected is
relatively small. There is minimal risk to the District and the property owners associated with the
completion of the temporary protection measures in the near future and the delay of the permanent
work until next year. The work included in this project appears in the 1998-99 Capital Improvement
Budget under Storm Damage Repairs, pages CS-83 through CS-85.
RECOMMENDATION: Reject all bids received for the contract for construction of the 1998 Storm
Damage Project, DP 5205.
U;\PPr\Kast\Storm Damage. 5205.2nd.pp. wpd
4/8/98
Page 3 of 4
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_ REPAIR AREAS
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ATTACHMENT
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1998 STORM DAMAGE REPAIR
DISTRICT PROJECT X5205
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ATTACHMENT 2
Central Contra Costa Sanitary District
SUMMARY OF BIDS
PROJECT NO. 5205 - 1998 Storm Damage Reoair
DATE September 24. 1998
LOCATION:
Orinda. Walnut Creek
ENGR. EST. $ 250.000
No. BIDDER BID PRICE
(Name, telephone & address)
1 Hillside Drilling Co., Inc. $439,169
P.O. Box 70130
Point Richmond, CA 94807-0130
2
3
4
5
6
7
BIDS OPENED BY
/s/ Joyce Murphv
DATE September 24. 1998 SHEET NO. ..l OF ...1
U :\PPr\Kast\Storm Damage.5205. wpd
4/8/98
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Central Contra Costa Sanitary District
BOARD OF DIRECTORS
:11111111:111:111:1111::1_111:1::1:1:1:: BOARD MEETIOGc7ober 15, 1998
;:;:;:::::;:::::::::::::::::::;:::::::::;:::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:;:;:::::::;:;:;:;:;:;:;:;:;:::;:;:::;:;:::;:;:;:;:;:;:::::::;:;:;:::::::::::::::::::;:;:;:;::::
Page 1 of 11 Pages
NO.
12. BUDGET & FINANCE a.
DATE
TYPE OF ACTION
October 7, 1998
RECEIVE ANNUAL REPORT
SUBJECT
RECEIVE THE 1997 ANNUAL REPORT OF THE DEFERRED COMPENSATION PlAN ADVISORY COMMITTEE
SUBMITTED BY
Debbie Ratcliff, Controller
INITIATING DEPTIDIV
Administrative/Finance & Accounting
ISSUE: The Deferred Compensation Plan Advisory Committee (Committee) respectfully submits its 1997
Annual Report.
BACKGROUND: The Board of Directors approved the establishment of the Committee in January 1982.
The scope of activities of the Committee includes:
. Establishing internal administrative procedures
. Educating participants regarding the Plan
. Reviewing emergency withdrawal requests
. Reviewing investment performance of the Plan
· Submission of an annual report to the Board of Directors and Plan participants
The Committee is made up of the following Departmental representatives:
Debbie Ratcliff, Controller - Chairperson
David Rolley, Accounting Technician III - Administrative
Dennis Hall, Associate Engineer - Engineering
Ron Galloway, Maintenance Crew Leader - Collection System Operations
Bill McEachen, Assistant Control Systems Engineer - Plant Operations
The Committee made several major accomplishments this year; among the most important are:
· Implemented the new contract (approved by the Board on October 2, 1997) with Hartford Life
Insurance Company and held workshops to educate all participants of the changes.
· Updated and implemented changes to the Deferred Compensation Plan Document (approved by
the Board on September 17, 1998) to comply with legislative changes in the Small Business Job
Protection Act of 1996.
P.M.
INITIATING DEPARTMENTIOIVISlON
S :\ADMIN\POSP APER\Bnnrpt.pp. wpd
DATE
October 7, 1998
Page 2 of 11 Pages
SUBJECT
RECEIVE THE 1997 ANNUAL REPORT OF THE DEFERRED COMPENSATION PLAN ADVISORY
COMMITTEE
Historically, the Deferred Compensation Annual Report has been presented to the Board at the end of the
fiscal year. This has required financial data to be presented for the prior calendar year, as well as the first
six months of the current fiscal year. Our Deferred Compensation providers track their financial results
on a calendar year basis, making it difficult to obtain the extra six months results. This annual report has
been changed to reflect only 1997 calendar year financial results. In the future, staff proposes to provide
the Deferred Compensation Annual Report to the Board each March, reflecting only calendar year results.
This will reduce staff time on this project, will make the report easier to read, and will reflect the fact that
performance results are typically reported at calendar year end. Staff proposes to begin this new approach
in March of 1 999.
RECOMMENDATION: Receive the annual report of the Deferred Compensation Plan Advisory Committee
for 1997 and provide any comments to staff.
S:\ADMIN\POSP APER\annrpt.pp. wpd
Central Contra Costa Sanitary District
DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE ANNUAL REPORT
JANUARY 1997 - DECEMBER 1997
The Deferred Compensation Plan Advisory Committee (the Committee) was established
by the Board of Directors to facilitate the internal administration of the District's Deferred
Compensation Plan. The scope of the Committee's activities encompass the following:
· Establish internal District administrative procedures within the provisions of the
Deferred Compensation Plan document.
· Educate participants regarding the Plan provisions by issuing a handbook which
summarizes the Deferred Compensation Plan and responding to questions from
participants.
· Review accountability by the Program Administrators, Hartford Life Insurance
Company (Hartford), Washington Mutual Bank (Washington Mutua!), and ICMA
Retirement Corporation (ICMA) and respond to participants' queries regarding
accuracy or propriety of account balances.
· Review participants' requests for emergency withdrawal of funds and make
recommendations for acceptance or denial to Board of Directors.
· Review investment performance of the Deferred Compensation Plan on an annual
basis.
Committee Accomplishments
The following activities were completed by the Committee during the period January 1 997
through December 1997:
. Internal District Administrative Procedures
One new Deferred Compensation committee member, Bill McEachen, was selected
and trained to support his department.
Education workshops were provided on a wide variety of investments and revised
terms offered by both Hartford and Washington Mutual.
· Review Accountability by Program Administrators
The Committee reviewed and analyzed the new core group of investments offered
by Washington Mutual Bank prior to seeking Board approval.
S :\AOMIN\RA TCLlFF\OEFCOMP\ANNUAL.RPT
Page 3 of 11
Monthly confirmation statements and quarterly account statements were submitted
to the District by Hartford, Washington Mutual, and leMA. Quarterly account
statements were distributed to all participants.
· Review Requests for Emergency Withdrawals of Funds
Three emergency withdrawal requests were reviewed by the Committee, and two
were recommended for approval by the Board of Directors. One was denied as it
did not meet the requirements for emergency withdrawal established by the
Internal Revenue Service.
. Review Investment Performance
A summary which presents the investment performance of the Hartford,
Washington Mutual, and ICMA programs for the calendar year 1997 is attached.
Current Committee Activities
· The Deferred Compensation Plan Document has been updated to comply with
reforms which apply to Section 457 Plans that are included in the Small Business
Job Protection Act of 1996 which was passed in August, 1996 and required to be
implemented by January 1, 1999.
· The Deferred Compensation Program Handbook is being updated to reflect changes
in the Plan as well as changes in the Washington Mutual and Hartford contracts.
Conclusion
During the period January 1997 through December 1997, the Committee addressed all
of the activities included in its scope of responsibilities through the conscientious efforts
of all of the Committee members.
The performance of Hartford, Washington Mutual, and ICMA in administering the Deferred
Compensation Plan during the 1997 report period is considered to be satisfactory. The
performance results of the Hartford, Washington Mutual, and ICMA stock and bond
investments for the calendar year 1997 follow.
S :\A OMI N\RA TCllFF\OEFC OMP\A N N U Al. R PT
Page 4 of 11
Please note the following when reviewing Plan results:
. Dow Jones Industrial Average is the most commonly followed index of the U.S. stock
market. It is comprised of 30 corporations spanning many different industries. It is price
weighted meaning that a $2 change in a $100 per share stock will have a greater affect than
a $2 change in a $20 per share stock. Measuring the Dow Jones Industrial Average is used
to gauge the direction of the stock market.
. Standard & Poors 500 is an index which measures broad-based changes in stock market
conditions based on the average performance of 500 widely held common stocks.
. Lehman Brothers Bond Index, an unmanaged list ofD.S. Treasury! Agency and investment
grade corporate debt securities, is used as a general measure of performance of fixed income
securities.
. T-Bill is the common name for a U.S. Treasury bill, is a short-term (with a maturity of up
to one year) discounted government security.
. Stock indices named through out this report include reinvestment of dividend and interest
mcome.
. All rate of return performance results are net of annual asset-based fees, which include fund
manager fees and marketing fees, and administrative fees.
. On October 1, 1997 Washington Mutual Bank bought out Great Western Bank. All results
are reported for Washington Mutual Bank.
Page5of11
CCCSD Deferred Comp Distribution
BY ADMINISTRATOR AND INVESTMENT TYPE
.Q~~r:t4Il)..~;t:NDr:D:.DEeEJlJsr:R31., .18:1'......
WASHIt4GTON
MUTUAL ICMA 457 ICMA 401 A HARTFORD
%
$9,137.232
354.831
2.517,665
$12,009,728
$7.933,176
22,148
3.748.165
$11,703,489
62.5%
2.3%
35.2%
100.0%
$930,207
5,943
157,938
$1,094,088
$5,539,265
465,466
6,855.992
$12,860,723
CCCSD Deferred Comp Distribution
BY ADMINISTRATOR
Calendar Year Ending December 31,1997
WASHINGTON
MUTUAL
$12,009,728
31.9%
HARTFORD
$12,860,723
34.1 %
ICMA 401A
$1,094,088
2.9%
ICMA 457
$11,703,489
31.1%
TOTAL
$23,539,880
848,388
13,279,760
$37,668,028
I_WASHINGTON MUTUAL _ICMA 457 [1J ICMA 401A III HARTFORD I
CCCSD Deferred Comp Distribution
BY INVESTMENT TYPE
Calendar Year Ending December 31, 1997
SAVINGS
$13,279,760
35.2%
STOCK
$23,539,880
62.5%
I_STOCK _BONDS mnSAVINGS I
Page 6 of 11
CCCSD Deferred Comp Stocks and Mutual Funds
Calendar Year Ended
December 31,1997
Rate of Return <!>
Market Indices
Dow Jones Industrial Average
Standard & Poors 500
25.00%
33.10%
Washington Mutual
Vanguard Primecap*r*
Washington Mutuallnvestors*
Vanguard Index 500
Vanguard Windsor 11**
Kemper-Dreman High Return Equity*
Fidelity Growth & Income Fund**
Fidelity Equity Income Fund
Investment Company of America
Dreyfus Third Century*
Neuberger & Berman Partners Trust*
Growth Fund of America
Fidelity Magellan Fund**
Vanguard US Growth*r*
Vanguard Wellington Fund**
20th Century Ultra Fund
Fidelity Contra Fund
DFA US 9-10 Small Company*
Janus*
Franklin Mutual Beacon 1*
Fidelity Puritan Fund**
Income Fund of America
Janus Worldwide*
Kaufmann*
EuroPacific Growth*
Templeton Foreign 1*
PBHG Growth*
36.51 %
32.88%
32.83%
32.11 %
31.52%
29.88%
29.58%
29.41%
28.98%
28.71%
26.48%
26.30%
25.61 %
22.91%
22.76%
22.62%
22.42%
22.34%
22.19%
22.06%
21.79%
20.14%
12.23%
8.87%
6.34%
-3.63%
Info only: (existing balances will remain in the phased-out funds until moved by the participant.)
20th Century Select Fund**
20th Century Growth Fund**
Vanguard Wellesley Fund**
Fidelity Retirement Growth Fund**
20th Century Balance Fund**
Fidelity Overseas Fund**
32.22%
28.91 %
19.91%
18.25%
16.66%
10.63%
*
Investment option became available to plan participants on October 1997.
Returns were obtained from the fund manager, less .29% Washington Mutual administration fee.
**
Page 7 of 11
CCCSD Deferred Comp Stocks and Mutual Funds
Calendar Year Ended
December 31, 1997
Rate of Return (%)
Market Indices
Dow Jones Industrial Average
Standard & Poors 500
25.00%
33.10%
leMA
Gabelli Value
Equity Income Fund
Broad Market Index Fund
Fidelity Growth & Income Fund
Fidelity Blue Chip
Fidelity Magellan Fund
Growth Stock Fund
Putnam Voyager
Asset Allocation Fund
20th Century Ultra Fund
Vanguard Wellington Fund
Fidelity Contra Fund
Fidelity Puritan Fund
Aggressive Opportunities Fund
Lindner Dividend
International Fund
500 Stock Index Fund***
American Century Value****
Mid/Small Company Index Fund***
Neuberger & Berman*****
Overseas Equity Index Fund***
47.10%
33.30%
30.10%
29.00%
25.90%
25.50%
25.20%
25.00%
24.60%
22.00%
22.00%
21.90%
21.40%
16.70%
12.80%
3.90%
N/A
N/A
N/A
N/A
N/A
***
Fund inception June 1997.
Fund inception September 1997.
Social Responsibility Fund was restructured as an all-equity fund as of April 1997.
****
*****
Page8of11
CCCSD Deferred Comp Stocks and Mutual Funds
Calendar Vear Ended
December 31,1997
Rate of Return (!)
Market Indices
Dow Jones Industrial Average
Standard & Poors 500
25.00%
33.10%
Hartford
Note: All the following funds except Hartford Stock became available in October 1997.
American Century Income & Growth
Hartford Index
Hartford Dividend and Growth
Hartford Stock
Scudder Growth & Income
Janus Twenty
Fidelity Advisor Growth Opportunities
Fidelity Advisor Growth & Income
Skyline Special Equities II
American Century Value
Hartford Advisers
Putnam Vista
20th Century Ultra Fund
Fidelity Advisor Balanced
Hartford Capital Appreciation
Janus Worldwide
Calvert Social Balanced
Putnam International New Opportunities
Hartford International Opportunities
33.22%
31.42%
30.70%
30.20%
29.21%
28.60%
27.60%
26.73%
25.14%
24.94%
23.39%
22.19%
22.09%
21.42%
21.25%
19.46%
18.99%
0.73%
-0.56%
Page 9 of 11
CCCSD Deferred Comp Bond Performance
Market Indices
I Lehman Brothers Bond Index
9.70%
Washington Mutual
Kemper High Yield A*
Vanguard Bond Index*
Bond Fund of America
11.18%
9.12%
8.87%
lC.MA
I Core Bond Fund**
8.10%
Hartford
Putnam High Yield Advantage*
Hartford Bond
Hartford Mortgage Securities*
12.40%
10.35%
8.04%
*
Investment option became available to plan participants October 1997.
Fund was restructured as an index fund June 1997.
**
Page 1 0 of 11
CCCSD Deferred Camp Saving Performance
Market Indices
I 90 Day T -Bill
5.18%
Washington Mutual
5 YR CDs
3 YR CDs
Liquid Savings
I
5.33%
5.22%
4.24%
leMA
u.S. Treasury Securities Fund
Plus Fund (401A)
Plus Fund (457)
Cash Management Fund
8.10%
6.27%
6.25%
4.60%
Hartford
Savings
HVA Money Market*
6.30%
4.39%
*
Investment option became available to plan participants October 1997.
Page 11 of 11
~
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
':'::::11:1:1111111,1111.1111111111111.1111111111111.1 ~;OM~:N;O~, 1998
Page 1 of 8
NO.
12. BUDGET & FINANCE b.
DATE
October 8, 1998
TYPE OF ACTION
ADOPT RESOLUTION
SUBJECT
ADOPT RESOLUTIONS APPOINTING BOND COUNSEL, ENGAGING PRICING CONSULTANT,
APPROVING, AUTHORIZING, AND DIRECTING THE EXECUTION OF DOCUMENTS, AND
AUTHORIZING THE DEUVERY OF AND APPROVING THE PREUMINARY OFFICIAL STATEMENT FOR
1998 REFUNDING REVENUE BONDS (REFUNDING ALL, OR A PORTION OF THE DISTRICT'S 1994
REVENUE INSTALLMENT CERTIFICATES)
SUBMITTED BY
Jarred Miyamoto-Mills, Principal Engineer
Debbie Ratcliff, Controller
INITIATING DEPT tOlV
Engineering/Environmental Services
Administrative/Accounting
ISSUE: The Board of Directors' approval and authorization is required to appoint Bond Counsel,
engage a Pricing Consultant and to borrow funds through the sale and delivery of long-term
Refunding Revenue Bonds.
BACKGROUND: In December 1994, the District borrowed $25 million through the sale and delivery
of long-term (20 year) Revenue Installment Certificates at a true interest cost of 6.40 percent. The
funds were used for several projects, including the Headworks, Secondary Clarifier, Disinfection
Facilities, and Aeration Basin Improvements, the Cogeneration Facility and Pleasant Hill Relief
Interceptor, while maintaining a prudent reserve in the Sewer Construction Fund for cash-flow
management and contingencies.
Current market conditions (true interest cost of 4-5 percent) offer the District an opportunity to
achieve a significant savings in debt service (more than $500,000 net of the cost issuance) by
refunding all, or a portion of the District's 1994 Revenue Installment Certificates. The proposed
refunding was discussed at the Budget and Finance Committee Meeting/Board Workshop on October
7, 1998. Staff recommends that certificates be refunded through the negotiated sale and delivery
of 1998 Refunding Revenue Bonds in an amount not-to-exceed $27 million.
The firm, Jones Hall, is recommended to serve as Bond Counsel, and the firm, Stone and Youngberg,
is recommended as underwriter. These firms were selected based on their participation in the original
1994 Revenue Installment Certificates offering, the experience and expertise of the team members
proposed, their commitment to the project scope and schedule, references, and reasonable cost.
Gary Kitahata of the firm, Kitahata & Associates, Independent Advisor on Public Finance is
recommended to serve as Pricing Consultant based on his experience, expertise, and references. The
cost of issuance for the 1998 Refunding Revenue Bonds is estimated at $296,000 for a partial
refunding, and $364,000 for a full refunding. A breakdown of this estimate is presented in
Attachment 1.
JSM CWBIPM
INITIATING DEPARTMEN-YSl/ .0 ~
JMMIDR
jl//Jf ~ ~
U:\PPr\RICsppr2. wpd
DATE
October 8, 1 998
Page 2 of 8
SUBJECT
ADOPT RESOLUTIONS APPOINTING BOND COUNSEL, ENGAGING PRICING CONSULTANT,
APPROVING, AUTHORIZING, AND DIRECTING THE EXECUTION OF DOCUMENTS, AND
AUTHORIZING THE DEUVERY OF AND APPROVING THE PREUMINARY OFFICIAL STATEMENT FOR
1998 REFUNDING REVENUE BONDS (REFUNDING ALL, OR A PORTION OF THE DISTRICT'S 1994
REVENUE INSTALLMENT CERTIFICATES)
A resolution appointing Jones Hall as Bond Counsel, and engaging Kitahata & Associates as Pricing
Consultant for the 1998 Refunding Revenue Bonds is presented as Attachment 2. A resolution
authorizing the delivery of the bonds within specific financial parameters pursuant to a negotiated sale,
authorizing staff to execute documents (including a Trust Indenture and a Trust Agreement with U.S.
Bank) and approving the Preliminary Official Statement for the bonds is presented as Attachment 3.
The draft Preliminary Official Statement for the bonds and the proposed indenture and agreement are
on file in the office of the Secretary of the District and are being delivered to the Board under separate
cover.
RECOMMENDATION: Two actions are required to approve and direct the delivery of the 1998
Refunding Revenue Bonds (Refunding all, or a portion of the District's 1994 Revenue Installment
Certificates) :
1) Adopt a resolution appointing Jones Hall as Bond Counsel and engaging Kitahata & Associates
as Pricing Consultant (Attachment 2).
2) Adopt a resolution authorizing staff to execute documents and authorizing the delivery of and
approving the Preliminary Official Statement for 1998 Refunding Revenue Bonds in an amount
not-to-exceed $27 million, if debt service savings net of all cost of issuance exceeds $500,000
(Attachment 3).
U:\PPr\RICsppr2.wpd
Page 3 of 8
ATTACHMENT 1
1998 REFUNDING REVENUE BONDS (REFUNDING THE
DISTRICT'S 1994 REVENUE INSTALLMENT CERTIFICATES)
ESTIMATE OF ISSUANCE COSTS
Partial EuJl
1. Underwriter (Stone & Youngberg) @ 0.69% $138,000 186,300
- Financial Advisory Fee
- Underwriter's Counsel
- Costs of Closure
- Costs of Sale
2. Bond Counsel (Jones Hall): 50,000 55,700
- Prepare Legal Proceedings and
Documents
- Provide Advice and Legal Opinions on
Disclosure and Tax Matters
- Manage Closing and Supervise Delivery
of Bonds
- Prepare Transcript
3. Ratings: 30,000 30,000
- Moody's Investors Service
- Standard & Poor's
4. Printing of Official Statements 15,000 15,000
5. Trustee (U.S. Bank) 7,000 8,000
- Trustee's Counsel
- Trustee Services
6. Pricing Opinion 3,000 3,000
7. CPA's Cash - Flow Verification 3.000 3.000
Subtotal $246,000 301,000
Contingency @ 6% 1 5,000 1 8,000
Bond Insurance (if cost effective) 35.000 45.000
TOTAL: $296.000 $364.000
Page 4 of 8
ATTACHMENT 2
RESOLUTION NO. _
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT APPOINTING
BOND COUNSEL AND ENGAGING PRICING CONSULTANT
FOR ITS 1998 REFUNDING REVENUE BONDS
RESOLVED, by the Board of Directors of the Central Contra Costa Sanitary District,
California, as follows:
WHEREAS, the District has previously issued its 1994 Revenue Installment
Certificates, and in order to realize interest rate savings the District now proposes to
issue its 1998 Refunding Revenue Bonds (the "Refunding Revenue Bonds") for the
purpose of providing funds to advance refund and defease all or a portion of the 1994
Revenue Installment Certificates; and
WHEREAS, in connection with such proceeding the District requires the advice and
assistance of bond counsel and a pricing consultant;
WHEREAS, the law firm of Jones Hall, A Professional Law Corporation, has agreed
to provide such bond counsel services, and the firm Kitahata & Associates, Independent
Advisor on Public Finance, has agreed to provide such pricing consultant services;
NOW, THEREFORE" the Board of the Central Contra Costa Sanitary District hereby
finds, determines, declares and resolves as follows:
Section 1. Appointment of Bond Counsel. Jones Hall, A Professional Law
Corporation, is hereby appointed as Bond Counsel in connection with the execution and
delivery of the 1998 Refunding Revenue Bonds, and that certain Agreement for Legal
Services, on file with the Secretary of the District, is hereby approved, and the General
Manager-Chief Engineer, the Director of Administration or the Controller are hereby
authorized to execute said Agreement.
Section 2. Engagement of Pricing Consultant. Kitahata & Associates is hereby
engaged as Pricing Consultant in connection with the structuring and negotiation of sale
of the 1998 Refunding Revenue Bonds, and that certain Agreement for Pricing Consultant
Services, on file with the Secretary of the District, is hereby approved, and the General
Manager-Chief Engineer, the Director of Administration or the Controller are hereby
authorized to execute said Agreement.
Page 5 of 8
PASSED AND ADOPTED this 15th day of October, 1998, by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
President of the Board of Directors of the
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGNED:
Secretary of the Central Contra Costa District,
County of Contra Costa, State of California
Approved as to Form
Kenton L. Aim, District Counsel
Page 6 of 8
ATTACHMENT 3
RESOLUTION NO.
RESOLUTION OF THE BOARD OF DIRECTORS OF THE CENTRAL
CONTRA COST A SANITARY DISTRICT AUTHORIZING ISSUANCE AND
SALE OF REFUNDING REVENUE BONDS TO REFINANCE 1994
REVENUE INSTALLMENT CERTIFICATES, AND APPROVING RELATED
DOCUMENTS AND ACTIONS
WHEREAS, the District is authorized pursuant to the provisions of Articles 10 and 11
of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, commencing
with Section 53570 of said Code (the "Bond Law"), to issue its revenue bonds for the purpose
of refunding any outstanding indebtedness of the District which is payable from the revenues of
the existing enterprise of the District for the collection, treatment and disposal of wastewater
(the "Wastewater System"); and
WHEREAS, the District has previously financed various improvements to the
Wastewater System under an Installment Sale Agreement dated as of December 1, 1994 (the
"1994 Installment Sale Agreement"), by and between the District and the Central Contra Costa
Sanitary District Facilities Financing Authority, and the obligations of the District under the
1994 Installment Sale Agreement are payable from and secured by a lien on the net revenues
derived from the operation of the Wastewater System; and
WHEREAS, in order to realize interest rate savings the District has determined to
authorize the issuance and sale of 1998 Refunding Revenue Bonds in the maximum principal
amount of $27,000,000 (the "Bonds") under the Bond Law, for the purpose of refinancing all or
a portion of its obligations under the 1994 Installment Sale Agreement and thereby refunding a
corresponding portion of the outstanding Central Contra Costa Sanitary District 1994 Revenue
Installment Certificates (Wastewater Facilities Improvement Project) which evidence the
District's obligations under the 1994 Installment Sale Agreement (the "1994 Certificates"); and
WHEREAS, the Board of Directors wishes at this time to authorize all proceedings
relating to the issuance and sale of the Bonds and the execution and delivery of all agreements
and documents relating thereto;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra
Costa Sanitary District as follows:
Section 1. Issuance of Bonds; Approval of Indenture of Trust. The Board of Directors
hereby authorizes the issuance of the Bonds in the aggregate principal amount of not to exceed
$27,000,000 under and pursuant to the Bond Law and an Indenture of Trust dated as of
November 1, 1998 (the "Indenture") by and between the District and U.S. Bank Trust National
Association, as trustee. The Board of Directors hereby approves the Indenture in substantially
the form on file with the District Secretary together with any changes therein or additions
thereto deemed advisable by the General Manager-Chief Engineer, Director of Administration or
Controller of the District (each, an "Authorized Officer"), and the execution thereof by an
Authorized Officer shall be conclusive evidence of such approval. An Authorized Officer is
hereby authorized and directed for and in the name and on behalf of the District to execute,
and the District Secretary is hereby authorized and directed to attest and affix the seal of the
District to, the final form of the Indenture.
Page 7 of 8
Section 2. Refinancing of 1994 Certificates. The Board of Directors hereby authorizes
the application of the proceeds of the Bonds for the purpose of refinancing all or a portion of
the District's obligations with respect to the 1994 Installment Sale Agreement and the 1994
Certificates, pursuant to the Escrow Deposit and Trust Agreement dated as of November 1,
1998, by and between the District and U.s. Bank Trust National Association, as escrow bank,
in substantially the form on file with the District Secretary together with any changes therein or
additions thereto deemed advisable by an Authorized Officer, and the execution thereof by an
Authorized Officer shall be conclusive evidence of such approval. An Authorized Officer is
hereby authorized and directed for and in the name and on behalf of the District to execute the
final form of such agreement for and in the name of the District.
Section 3. Sale of Bonds; Minimum Savings. The Board of Directors hereby approves
the sale of the Bonds by negotiation with Stone & Youngberg LLC as underwriter (the
"Underwriter"), pursuant to the Bond Purchase Agreement by and between the District and the
Underwriter, in substantially the form on file with the District Secretary together with any
changes therein or additions thereto deemed advisable by an Authorized Officer, and the
execution thereof by an Authorized Officer shall be conclusive evidence of such approval. An
Authorized Officer is hereby authorized to execute the Bond Purchase Agreement on behalf of
the District, upon the determination by such Authorized Officer that the bid of the Underwriter
is in conformance with the requirements of this Resolution and upon the advice of Kitahata &
Company, as pricing consultant to the District. The amount of Underwriter's discount on the
sale of the Bonds shall not exceed sixty-nine hundredths percent (.69%) of the par am9unt of
the Bonds, and the yield at which the Bonds are sold (taking into account any original issue
discount on the sale thereof) shall not exceed five and one-half percent (5-1/2%) per annum.
The Bonds shall not be sold to the Underwriter unless it shall be determined by an
Authorized Officer, upon consultation with the pricing consultant, that the net present value
savings to be realized by the District from the refunding of the 1994 Certificates will be at least
equal to $500,000.
Section 4. Official Statement The Board of Directors hereby authorizes an Authorized
Officer to approve and to deem nearly final, within the meaning of Rule 15c2-12 of the
Securities Exchange Act of 1934, a form of Preliminary Official Statement describing the Bonds.
Distribution of such Preliminary Official Statement by the Underwriter is hereby approved. An
Authorized Officer is hereby authorized and directed to approve any changes in or additions to
such Preliminary Official Statement for the purpose of finalizing such document, and the
execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such
changes and additions. The Board of Directors hereby authorizes the distribution of the Final
Official Statement by the Underwriter. The Final Official Statement shall be executed in the
name and on behalf of the District by an Authorized Officer.
Section 5. Official Actions. The General Manager-Chief Engineer, Director of
Administration or Controller of the District, District Secretary and all other officers of the
Board of Directors and the District are each authorized and directed in the name and on behalf
of the District to make any and all assignments, certificates, requisitions, agreements, notices,
consents, instruments of conveyance, warrants and other documents, which they or any of them
might deem necessary or appropriate in order to consummate the issuance and sale of the
Bonds and any of the other transactions contemplated by the agreements and documents
approved pursuant to this Resolution. Whenever in this resolution any officer of the District is
authorized to execute or countersign any document or take any action, such execution,
countersigning or action may be taken on behalf of such officer by any person designated by
such officer to act on his or her behalf in the case such officer shall be absent or unavailable.
Page 8 of 8
Section 6. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
************
PASSED AND ADOPTED this 15th day of October, 1998, by the following vote:
AYES:
NOES:
ABSENT:
President of the Board of Directors of the
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:
Charles F. Adams, President
Jones Hall, A Professional Law Corporation
Bond Counsel to the District