HomeMy WebLinkAboutAGENDA BACKUP 07-07-94
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
PAGE 1 OF 2
BOARD MEETING OF
July 7, 1994
NO.
3. CONSENT CALENDAR a.
SUBJECT
DATE
ACCEPT GRANTS OF EASEMENTS FROM PLEASANT PALMS
PARTNERSHIP AT A COST OF $51,786.00; DP 4985;
PARCEL 009; PLEASANT HILL AREA
TYPE OF ACTION
ACCEPT GRANTS
OF EASEMENTS
SUBMITTED BY
INITIATING DEPT.lDIV.
Michael J. Penny, Assistant Engineer
Engineering Dept./lnfrastructure Div.
ISSUE: The subject easements are required for a portion of the 1 8-inch reclaimed water line
which will be constructed in conjunction with the Pleasant Hill Interceptor Project.
BACKGROUND: The easements are located on the north end of the parking lot at 560 Contra
Costa Boulevard in Pleasant Hill (commonly known as the Target Shopping Center). The
easements are shown on the attached map, Attachment A. The permanent easement (parcel
009-1) will establish permanent rights for the construction, maintenance, repair, and access to
the reclaimed water facilities. The temporary access easements (parcels 009-2,3,and 4) will
establish temporary rights for access to the construction area on the Target Shopping Center
parking lot and the construction area in the Grayson Creek Channel to the west. Funds for the
purchase of the easement are included in the authorized Pleasant Hill Easement Acquisition
Project, DP 4985. Construction in the vicinity of the easement is tentatively scheduled for
Summer/Fall 1994.
At the April 21, 1994, CCCSD Board meeting, the District Board of directors adopted a resolution
of necessity for the acquisition of the above referenced easements by eminent domain
proceedings. Negotiations with the property owner have subsequently concluded and an
agreement has been reached. District staff is continuing to work with the property owners to
obtain subordination agreements with the two lending institutions holding title to the property
to protect the District's easement rights in the event there is a property foreclosure.
The Recycled Water Line Project and Negative Declaration for said project were approved by the
District Board of Directors at the September 16, 1993, Board meeting.
RECOMMENDATION: Accept Grants of Easements from Pleasant Palms Partnership at a cost
of $51,786.00, DP 4985, Parcel 009, and authorize the Grant of Permanent Easement to be
recorded.
REWEWEDAND RECOMMENDED FOR BOARD AcnON
1302A-7/91
MJP
TJP
JSM
RAB
LOCATION
N.T.S.
CREEK ,I 1-1
- - -1-I-T-T-T1T -t/.-T1T
lT1T1T1T1T1T1T1T1T1Tl~ I I:tT1T
>I-I-I-I-I-I-I-I-I-I-I:!I f-I-I-
1-1-1-1-1-1-1-1-1-1-1-1- ~-I-I
-IT1T1T1T1T1T1T1T1T1Tlji' 11T1T
11-1-1-1-1-1-1-1-1-1-1"-1 -1-1-
~_ ITITITITI,I,I,I,I,ITn 1/1T1T11
11T1T1T1T1TITITITITIT- tl.T1T11
1I1T1T1T1T1T1T1T1T1T1Tli ' 11T1T11
-1-1-1-1-1-1-1-1-1-1-1 ~ 1-1-1
ILT1T1T1T1T1T1T1T1T1T1T ~lTlTI
1-1-1-1-1-1-1-1-1-1-1-1 "1-1-1
~lT1T1T1T1T1T1T1T1T1Tl~1 , IT1T1T
-1-1-1-1-1-1-1-1-1-1-1 t-I-I-
(-1-1-1-1-1-1-1-1-1-1-1 1 1-1-1
!lTlTlTlTlTlTJ..TlTlT1T~ _Tl,1,
rlT1T1T1T1T1T1T1T1T1TII ItlT1T
-1-l-l-l-1-1-1-1-1-ltJ--, I ~I-I-
~T1T1T1T1T1T1T1T1T1T-hl:i \ -IT1T11
r:':+:':+~:':+I+I+I+I+I+TT1+J ~I+I+
-1-I-1-1-1-1-1-1-1--m:I-.\ ' -1-1-1
tT1T1T1T1T1T1T1T1Tlr+T1J \LT1T11
T1T1T1T1T1T1T1T1TtlT1T11 \ I!.T-
11T1T1T1T1T1T1T1T T1T11I tT1T1T
1T1T1T1T1T1T1T1T+1tT1Tlil' T1T1T
-I-I-I-I-I-I-I-+L+-I-I- -1-1-
~ItI+I+I+I+I+lbI+I+I-f! I rtItI+
\;:1-1-1-1-1-1-1+1-1-1-1- LI-I_
lT1T1T1T1T1T1TlfflT1T1TJ/ ' .lT1T11
I'-T1T1T1T1T1T1TIT1TlT1T! I iT1TlTlI
IT1T1TlT1T1T1JAT1T1T17 frTlT1TlI
hlT1TlT1T1T%1 lT1T1Tl1 , 11T1T1T11
~TlTlT1T1T1TI11T1Tl-:r1 I IlT1T1Tl,
-1-1-1-1-1- 1-1-1 1-1-1-1
tl-l-I-I-I-I-I-I-I-I !f-I-I-I-I
-T1T1T1T1Tl:yj;T1T1T!JI- , -'-T1TlT1Tl,!
,-1-1-1-1-1 ~I-I-I 11--1-1-1-1-
1111111111_ -11T11 I nlTlT1T1Tl
rlT1T1T41flT1T1T11-1 T1TlT1T1Tl
IT1T1T1T111T1T1TI , IIT1T1T1T1Tl,
11-1-1-1$1-1-1- IlT-I-I-I-I-I
-1-1-1-1 I-I-I-.l/ I -I-I-I-I~I-I-I
~I+I+IhI+I+I+J !rI+I+ItI+I+I+'
IItlflt]-JI+I+lfj I tI+I+I+I+I+I+I:
I'-T1T1T.J-T1T1Tl-;:1 I iT1T1T1T1T1T1T1T
I-I-I:m--I-I-M 1-1- - - - - -
t+ltI-1+ltItT ,it:
jT!-T~11T1T1TI \ ~II
1-1- -1-1-1-1 -1-
tilt +I+I+I+I~ I tit
t-I-I-I-I-I-I -1-
IT!:t'-TlTlT1T ITl
P-TlI1T1T1T1T~ Itl
~I+T~I+I+I+I~ I [+
-I-I\:'I-~-I- \ 1[-
l!--I-I-I
Il-;:411T1T1T-T t.TI
1I1TltrlT1T1T1'jl , LTI
-I-I-I-I-I-I:!l t-I
"-TlliTlTlT1Tl- I 11
ITliiTlTlTlT1J IT
r-I-f-I-I-I-IJ , -1-
-1-1 I-I-I-I-~ 1+1
~TlT TlT1TlTl Il!-T
i-ItI I+Ij-I+I+ -:1
:LTlt1T1T1T1iJ , W1,
tl-I-I-I-I-I-i1 1 -I
-1- 1-1-1-1- -I
IlT1UT1T1T1T.!I ~ll
-1-1-1-1-1-1-11 -I
IIlT-!lrlTlTlTlT t.TI
iIlT.!JrlTlT1Tlil \ ~Tl
IlTITlTlTlTltJ Tl
1I1T~T1T1T1Tj , Ifl
i[lT111T1T1T1TJ11
,.,-J'!-I-TllItrtltltltI-I \ ttt
,"n~"T.!-I1T.LT1T1T1T!T-lTtTl-T-LT-.LTl~ I ITt
_ I~I.!.I T1TlTlTlT-LT-.LTlTl~Tl.TTTl.TlTlT.L1l I fil
'!"'c1~lT1T1T1T141T1T1T1T1T1T1T T1TIT1TlTlT1il \:Tl
....-~I-I-I-I-I-I-I-I -1-1-1-1-1-1-1- -1-+-1-1-1-1- l-I
~~m.!.T1T1T1T1T1T1T1T1T1T 11T1T1T1T1T1T1Tl-%ITllT1T1T1T~ ' III
""'71'-'-1-1-1-1-1-1-1-1-1-1-1-1-1-1 1-1-1-1-1-1-1-1 1-1-1-1-1-1-1 -1-
'-'7' -1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1- -I-ltl-I-I-I- -I
""""'I-'-'flT1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1TlT1Tl IT1!!:T1T1T1Tl- \ IT
'11T1T.!.T1T1T.!.T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1TlT1T1T1T1TlT1T.!.T1Tl-~IT111T1T1TlT11 , tlT
"-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1 1-1 1-1-1-1-1- 1-
~T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1TlT1T T1T:j[lT1T1T1T.l \ [1
lT1T1T1T1TlT1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1Tlr1T-11Tl11T1T1T1Tj III
ILT1T1T1TlT1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T.!Jr1T1lI1T1T1T1T~1 , ~ll
,-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1\:'1-1-1-1-1 I
rlT1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1TlT1T1T1T11I'-T1TIT1T1T1T11- I TI
-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-I-I-I-I-I'!f-I-I-I-IT\ f-I
lI+I+I+ItIlI+I+I+I+I+I+I+I+I~.l.UtJ.t+I+I+I+I+I+I+I+I+I+I+Ij-I1E+I+r+I+I+I+I-h ' Hl
tlT1T1T1T1T1T1T1TlT1T1T1T1Tlt~~T1T1TlT1T.!.T.!.T1T1T1T1T1Tltt.TlT1T1T1T1T1T' 1 tTl
telT1T1T1T IT lT1T1T1T1T1T1T1Tll'!'FH'-mrflT1T1T1T1T1T1T IT.!.T IT lT1T1T JT lT1T1T41T IT' Itl
1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-I-I-f-I-t-I-I-I-I-l -I
'T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1TlTlr1T1T1T1T1T1T1t-1T11T1T1T1T1-, ' liT
"-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1 1-1 1-1-1-1-11 IT-
~ItltltltI+I+I+I+I+I+I+ltI+ltltltltI+I+llI+ItltltltltltItltltI ItliCtIj-ItltIT \ ji:l
'11T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1-.lT1jtLT1T1T1~~ ....--"-T
"-1-1-1-1-1-1-1-~-.tii<:~lG:JoCtt:ji-ji::lIittrl-I-I-I-I-I-I-I-I"I-I-I-;-I""'+17I:!J
~T1T1TlT1T1T1Tl~'j'.jIJ.J.1~~I'!'i'~I'!'lW~3jEI_I_ -lT1T1T1T1T~TM.tjlI-J:t.!;TI- 1
~T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T1T.!.T.!. -l*rl~-!;i~MT-
lItIj-ItltItI+ltltItltltltltltltItltltltltI1T1T*I-_J.!-~II"If-m+:: 1 ---
tl-I-I-I-I-I-I-I-I-I-I-I-I-I-I-I-I-I-I-',!.'-I~-IWI-I-II-tl:I-
-T1T1T1T1T1T1T1T1T1T1T1T1T1T1TJJ-J.:t.!flITTl-j#4:j:!:I!:'.!.TM-m;
l-I-I-I-I-I-I-I-I-I-I-I-I-I-""'--;-I-I~I-I-I-',!.'-I-F'I-;-J.
1T1T1T1T1T1T1T1T1T1T1T1T1T1T~:j:!:tJ;t1~7T-;-L-
llT41T1T1T1T1T1T1T1T1T1T1T1T+1*I1""--;- -
t!:T1T1T1T1T1T1T1T1T1T1T1Tl-l- -
lT1T1T1T1T1T1T1T1-1- -
l!.-I-I-I-I-I- -
11Tl-l-l-
--(
PARCEL
009-1
PARCEL
009-3
WALNUT
\\,~~.EK
" ", t.,
"-"---~O/f>
--\,
EXISTING
ACCESS EASEMENT
- r~
"'.~
MAP
PLEASANT PALMS PARTNERSHIP
10'
LEGEND:
1- Permanent
Easement
(Non - Exclusive)
TEMPORARY ACCESS
EASEMENT
It-ltltltltltlil- Temporary
Easement
150.00'
C
0>
D
CO~~Rf\
COS~ f\
'"
o
'"
o
~
~z~
u\.J \] U
~
~
-,
~
60
,
30
60
,
o
~
~
,
;:,
if'
FEET
o
"
~
L
if>
.:'
Central Contra Costa
Sanitary District
GRANT OF EASEMENT
Job No. 20131 (4985)
Concord IPleasant Hill Area
~
'"
'"
'I
z
::J
-,
1
:;
PARCEL
009-2
ATTACHMENT
A
~
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
PAGE 1 OF
July 7, 1994
NO.
3. CONSENT CALENDAR b.
BOARD MEETING OF
SUBJECT
APPROVE AGREEMENT RELATING TO REAL PROPERTY WITH
STEVEN E. HAGMAN AND HENRIETTE S. HAGMAN,
JOB 2447, MORAGA AREA
DATE
June 27, 1994
TYPE OF ACTION
APPROVE REAL
PROPERTY
AGREEMENT
SUBMITTED BY
Dennis Hall, Associate Engineer
INITIATING DEPT./DIV.
Engineering Dept./lnfrastructure Div.
ISSUE: The property owners have requested the District's approval to allow the encroachment
of a redwood deck over a District's easement.
BACKGROUND: The proposed deck will be a four foot extension to an existing deck within a
portion of a sewer easement on the Hagman property. The extension will be cantilevered over
the easement approximately eight to ten feet above grade. The deck construction will include
a wooden stairway with a 4x4 foot concrete landing at grade within the easement. The deck
and stairway will be constructed with bolts to facilitate their dismantling if it ever becomes
necessary. An eight-inch cast iron sewer pipe was installed in 1974 within the easement at
a depth of about five feet. The property owner has cooperated with District staff by providing
construction drawings of the deck and has paid the District's fee for processing the subject
agreement.
Staff has determined that the improvements will not interfere with the present use of our
sewer. However, if the need should arise, the agreement requires the property owner to move
the deck and stairway at his/her expense within 30 days of notice to do so.
This project (the proposed agreement) has been evaluated by staff and determined to be
exempt from the California Environmental Ouality Act (CEQA) under District CEOA Guidelines
Section 18.6, since it involves a minor alteration in land use limitations.
RECOMMENDATION: Approve the Agreement relating to real Property with Steven E. Hagman,
et ux, Job 2447, and authorize the President of the Board of Directors and the Secretary of the
District to execute said agreement, and authorize the agreement to be recorded.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
1302A-7/91
JSM
RAB
/)t
DH
i I
i . I
i ..!
, !
. ,
!
,.... .. ,.
NORTH ELEVATION
WEST ELEVATION
I .
I . .
i '. r i
" .
, . I I ,
-~~~-
. I I . i' I '.
j . j' r I I
;! 1. I'
I i j i
! I
'"
(q.
"'. ~
"'.
~
~
""-
. ..
E~ISTING JEdK 1 t J--l 'r--.-J I
'i ! - 1 111 -t:nn' I II I ~,~--' . . CONC. LANDING
I DECK EXTENSION I STAIRS .
_ ! UUW
8" CAST IRON PIPE (64')
PLAN VIEW
REAL PROPERTY AGREEMENT
JOB 2447
MORAGA AREA
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
PAGE 1 OF
2
July 7, 1994
NO.
3. CONSENT CALENDAR c.
BOARD MEETING OF
SUBJECT
DATE
APPROVE AGREEMENT RELATING TO REAL PROPERTY
WITH MARTINEZ UNIFIED SCHOOL DISTRICT,
ALHAMBRA HIGH SCHOOL, MARTINEZ AREA, JOB 1 810
APPROVE REAL
PROPERTY
AGREEMENT
SUBMIBe'n'n1s Hall, Associate Engineer
INITlf~aiweeRt\g Dept.llnfrastructure Div.
ISSUE: The property owner, Martinez Unified School District, has requested the District's
approval to allow the encroachment of sport bleachers, a portable classroom and a
retaining wall over a District easement.
BACKGROUND: In January 1993, the School District granted this District a 15 feet wide
easement for an existing six-inch vitrified clay sewer pipe. The sewer main is part of the
old City of Martinez system which was transferred to this District without recorded
easement rights in the late 1960's. This main serves several residences on Marion
Terrace west of the high school.
The School District granted the easement at no cost to the Sanitary District with the
understanding that upon execution of the subject Real Property Agreement, this District
would permit the existing sport bleachers to remain over the sewer and that the School
District would be permitted to construct a portable classroom and retaining wall over the
sewer. Before construction of the new improvements, the affected portion of the sewer
main was replaced with ductile iron pipe.
The subject agreement includes our standard clauses while allowing the improvements
to remain over the easement. It also requires that the School District contribute to the
cost of relocating the sewer main, if it becomes necessary in the future. This contribution
will be the cost which will be in excess of the cost to repair, modify or replace the
existing sewer main at its present location by conventional open cut construction.
This project (the proposed agreement) has been evaluated by staff and determined to be
exempt from the California Environmental Ouality Act (CEQA) under District CEOA
Guidelines Section 18.6, since it involves a minor alteration in land use limitations.
RECOMMENDATION: Approve the Agreement Relating to Real Property with Martinez
Unified School District, Job 1810, and authorize the President of the Board of Directors
and the Secretary of the District to execute said agreement, and authorize the agreement
to be recorded.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
DH
JSM
RAB
tf 'if j)j)f3
1302A-7/91
RETAINING
WALL
$""
~~
1#1
.,1'0
...J
'-Z
............
J!!!!!!I!l!Jd = ENCROACHMENT i
Central Contra Costa
Sanitary DIstrict
APPROVE AGREEMENT RELATING TO REAL PROPERTY
WITH MARTINEZ UNIFIED SCHOOL DISTRICT,
JOB 1810, ALHAMBRA HIGH SCHOOL, MARTINEZ AREA
2523-9/88
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
PAGE 1
OF
1
BOARD MEETING OF
July 7, 1994
NO.
3. CONSENT CALENDAR d.
SUBJECT DATE
APPROVAL FOR SLUDGE DEWATERING PROCESS REDESIGN June 30, 1994
TEAM TO VISIT DURHAM, OREGON WASTEWATER TREATMENT TYPE OF ACTION
PLANT AUTHORIZE TRAVEL
SUBMITTED BY
John C. Pearl
Plant Maintenance Division Mana er
INITIATING DEPT./DIV.
Plant Operations Department
ISSUE: Board of Directors approval is required for unbudgeted travel if the cost exceeds
$500 or is out of state.
BACKGROUND: The United Sewage Agency-Durham wastewater treatment plant near southwest
Portland, Oregon, has dewatering facilities similar to that of the District. This information came
from work done by the Sludge Dewatering Process Design Team.
Some of Durham's facilities, particularly the dewatered sludge cake pumps, incorporate some of
the upgrades recommended by the Process Redesign Team. The team feels it would be beneficial
to validate their recommendation by visiting the actual installations and discussing the installation,
operation, and maintenance problems.
It is anticipated that eight members of the Sludge Process Redesign Team would visit the Durham
facilities to investigate various process modifications and areas of interest. Present planning calls
for a one-day trip. Recently reduced airfares will lower the cost of the trip, which would take place
in July. The budget for this trip will be $1 80 per person. There are adequate funds in the overall
Plant Operations Department budget to cover the expenses of this trip.
RECOMMENDATION: Authorize the expenditure of $180 per person and travel for members of the
Sludge Dewatering Process Redesign Team to visit the Durham, Oregon wastewater treatment
plant.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
1302A-7/91
JCP
Gentral Contra Costa Sanitary District
BOARD OF DIRECTORS PAGE 1 OF 2
BOARD MEETING OF
July 7, 1994
NO.
SUBJECT
AUTHORIZE APPROVAL OF AN ADDENDUM FOR $47,000 TO THE
CONTRACT WITH LAMB AND LAMB FOR THE CONTINUATION OF
THE DISTRICT'S WORK REDESIGN PROGRAM
5. TREATMENT PLANT a.
DATE
June 27, '994
TYPE OF ACTION
AUTHORIZE AGREEMENT
ADDENDUM
SUBMITTED BY
John C. Pearl,
INITIATING DEPT./DIV.
Plant Operations Department
e Division Mana er
ISSUE: Board of Directors' approval is required for professional Operations and Maintenance
funded professional consulting agreements and addenda above $25,000.
BACKGROUND: Central Contra Costa Sanitary District is being subjected to external forces that
will have an adverse effect on the District unless we respond intelligently and effectively. In
particular, the District has lost a substantial portion of its property tax revenue stream: $3.5 million
annually to date, and another $800,000 is now in jeopardy.
The integrated response by the District to these changing business needs includes as one of its
parts a "Work Redesign" program. This effort focuses on finding ways to refine and improve our
efficiencies by streamlining our work processes while empowering our employees. This is a
program of changing our culture so that employees may make the contributions necessary to
enable the District to meet these new challenges.
This effort is being shepherded by the consultants, Howard and Sue Reis-lamb, who comprise the
consulting firm of lamb and lamb of Tiburon, CA. They were selected by a committee that
represented a cross-section of the District. Activities to date include workshops to identify the
necessary changes in the District culture to support change, the formation of a "Steering
Committee" to guide this program, and the selection of two strategic initiatives that were chosen
because of their District-wide impact and potential improvement to the three "bottom lines" of
cost, customer satisfaction, and quality of work life. Process Redesign teams have been formed
to address the specific problems in the sludge dewatering process and the safety information
dissemination process.
Current plans call for the continuation of the Strategic Initiative process augmented with
Continuous Improvement Teams. Ongoing emphasis will also be placed on the cultural values and
individual behaviors that are needed to ensure that employee efforts are both encouraged and
recognized. A group of in-house "facilitators" will be trained to lead the various teams that will be
REVIEWED AND RECOMMENDED FOR BOARD ACTION
1302A-7/91
AUTHORIZE APPROVAL OF AN ADDENDUM FOR $47,000 TO THE
CONTRACT WITH LAMB AND LAMB FOR THE CONTINUATION OF
TI-:iE DISTRICT'S WORK REDESIGN PROGRAM
SUBJECT
PAGE 2 OF 2
DATE
June 27, 1994
working on process improvement and problem solving.Board of Directors authorization is needed
for the continued services of lamb and lamb. We are proposing an agreement addendum for
$47,000 for the work that is presently planned for the next six months. At that time, an
evaluation will be made of the future Work Redesign program needs of the District.
RECOMMENDATION: Authorize approval of the agreement addendum with lamb and lamb in the
amount of $47,000 for the continuation of support for the District's Work Redesign Program.
13026-7/91
PAGE
OF
5
NO.
9. BUDGET AND FINANCE a.
SUBJECT
ADOPT A RESOLUTION DECLARING INTENTION TO
REIMBURSE CERTAIN PROJECT EXPENDITURES FROM
THE PROCEEDS OF A FUTURE DEBT ISSUANCE
DATE
TYPE OF ACTION
ADOPT RESOLUTION
SUBMITTED BY
INITIATING DEPT./DIV.
Jarred Miyamoto-Mills, Principal Engineer
Planning Division/Engineering Department
ISSUE: U. S. Income Tax Regulations require that a resolution of intent be adopted by the Board
of Directors prior to the payment of project costs if those costs are to be reimbursed to the District
from a future debt issuance.
BACKGROUND: The 1994 Capital Improvement Plan (CIPl, approved by the Board of Directors
on June 2, 1994, recommends that $12-20 million in debt be issued during fiscal year 1994-95,
as part of a coordinated strategy to adequately fund the District's Capital Improvement Program.
Other components of the strategy include reducing the District's planned ten-year capital
improvement expenditures by $37 million, and raising additional sewer service charge revenue for
upgrade and replacement of District facilities.
A tentative schedule for the proposed debt issuance is presented in Attachment 1. As noted in
the schedule, selection of a financial advisor is currently underway. One of the first tasks to be
undertaken by the financial advisor will be an independent evaluation of the CIP cash flow analysis
to establish a recommended financial plan. A key element of the financial plan will be the sizing
of the debt issue, which may be more or less than the CIP recommendation depending, in part,
on the District's future property tax updated projections of the revenue.
Several current projects of general benefit to the District's customers are listed on Attachment 2.
It would be appropriate to pay for these projects, in part, from the proceeds of the recommended
debt issuance. U. S. Income Tax Regulations allow reimbursement of project expenditures made
prior to the issuance of debt only if the issuer's governing body has adopted a resolution of intent
to do so. A draft resolution complying with these regulations is presented in Attachment 3. The
resolution states that the maximum amount of the debt issue will be $25 million, which is
consistent with the least optimistic scenario presented to the Board during CIP deliberations. In
addition to those listed on Attachment 2, other future projects may also be funded from the
proposed debt issuance.
The District should state its intent to secure the recommended debt issuance from its ad valorem
property tax revenue. A statement of this intent is included in the recommended draft resolution.
RECOMMENDATION: Adopt the attached resolution stating the District's intent to pay for certain
project expenditures from a future debt issuance and to secure the debt by ad valorem property
tax revenue.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
v
Jjt~ W
INITIATING DEPT./DIV.
1302A-7/91
JMM
DJC
RAB
Attachment 1
TENA TIVE NEAR-TERM SCHEDULE
. Solicit Updated Proposals From
Potential Financial Advisor. . . . . . . . . . . . . . . . .. July 8, 1994
. Review Proposals . . . . . . . . . . . . . . . . . . . . . . . . .. July 1994
. Conduct Interviews and Select Finalists ..... July/August 1994
. Board Finance Committee Interviews -
Select Consultant . . . . . . . . . . . . . . . . . . . . .. August 9, 1994
. Position Paper to Hire Financial Advisor. . . . .. August 18, 1994
. Consultant/Staff Evaluates
Financial Plan . . . . . . . . . . . . . . . . . .. August/September 1 994
. Review Final Financial Plan with Board
Finance Committee. . . . . . . . . . . . . . . . . . September 26, 1994
. Final Board Authorization ................ October 6, 1994
. Sale of Securities . . . . . . . . . . . . . . . . . . . . . . . . January 1995
Attachment 2
Potential Proiects for Reimbursement from Future Debt Issuance
Projected Expenditures
7/1 /94 - 1 2/31 /94
Treatment Plant
Aeration Basin Improvements
Aeration Basin Selector Project
Disinfection Facilities Improvements
Headworks Facility Expansion
Outfall Improvements
Secondary Clarifier Improvements
Cogeneration Facility
$ 450,000
830,000
765,000
7,173,000
130,000
890,000
1,565,000
Collection System
Pleasant Hill Relief Interceptor
10,000,000
Total
$21,803,000
_.__,.,_____.__..^~__._..,.,.__.___._~.._._,._...,.__...,... ...._., .____..._.__,._._.' . _...'n.._.__.__v__._._._._...._M~._........._._.N___.__._._"_.____~___.._"..__~~__..__~_.,._._._._.._.____~.~" - .-------------~,..._-----,._--....-..-.--",....
Attachment 3
RESOLUTION NO, 94-
A RESOLUTION DECLARING INTENTION TO REIMBURSE
EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS
TO BE ISSUED BY THE DISTRICT AND DIRECTING CERTAIN ACTIONS
BE IT RESOLVED, by the Board of Directors of the Central Contra Costa Sanitary
District (the "District") as follows:
WHEREAS, the District proposes to undertake the projects referenced below, to issue
debt for such projects and to use a portion of the proceeds of such debt to reimburse
expenditures made for the projects prior to the issuance of the debt;
WHEREAS, such debt is to be secured by District ad valorem property tax revenues;
WHEREAS, United States Income Tax Regulations section 1 .150-2 provides generally
that proceeds of tax-exempt debt are not deemed to be expended when such proceeds
are used for reimbursement of expenditures made prior to the date of issuance of such
debt unless certain procedures are followed, one of which is a requirement that (with
certain exceptions), prior to the payment of any such expenditure, the issuer declare
an intention to reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the District declare
its official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:
1. The District intends to issue obligations (the "Obligations") for the purpose of
paying the costs of Treatment Plant capital improvements, including hydraulic and
process capacity improvements, a Cogeneration Facility, and the Pleasant Hill Relief
Interceptor, (the "Projects"),
2. The District hereby declares that it reasonably expects (i) to pay certain costs
of the Projects prior to the date of issuance of the Obligations and (ii) to use a portion
of the proceeds of the Obligations for reimbursement of expenditures for the Projects
that are paid before the date of issuance of the Obligations.
Resolution No. 94-
Page 2
Attachment 3 (Continued)
3. The maximum principal amount of the Obligations is $25,000,000.
PASSED AND ADOPTED this 7th day of July 1994, by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
President of the District Board 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
Kenton L. Aim, District Counsel