HomeMy WebLinkAboutAGENDA BACKUP 10-19-89
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Cent -.~ Contra Costa Sanltar- ~ District
BOARD OF DIRECTOFi~
PAGE 1 OF 2
NO.
IV.
DATE
BIDS AND AWARDS
1
POSITION
PAPER
BOARD MEETING OF
SUBJECT
RESCIND NOTICE OF AWARD AND REJ ECT CllSTOM roNTROLS
AND ELECTRIC roMPANY'S BID, AND AUTHORIZE AWARD
OF CONTRACT FOR DISTRICT PROJECT NO. 10057, LARWIN
PUMPING STATION UPGRADE, TO THE SECOND LOWEST
RESPONSIBLE BIDDER, CLASSIC ELECTRIC & DATA
TYPE OF ACTION
REJ ECT B IDf
AUTHORIZE AWARD
INITtA TING DEPT./OIV.
Plant 0 erations De artment
ISSUE: Custom Controls and Electric Company has failed to secure performance and
labor and material bonds, as required by the bid request and contract for District
Project No. 10057, Larwin Pumping Station Upgrade. Action by the Board of Directors
is requi red to reject a bid for being nonresponsive and authorize award to the
second lowest responsible bidder.
BACKGROUND: On September 21, 1989, the Board of Directors authorized Award of
Contract for $54,900 for District Project No. 10057, Larwin Pumping Station Upgrade,
to Custom Controls and Electric Company (Contactor), the apparent lowest responsible
bi dder. The Noti ce of Award was sent to the Contractor by certified mail on
September 26, 1989. The Notice provided notification to the Contractor requi ring
performance and labor and material bonds to be delivered to the District within five
days. On October 5, 1989, the Contractor notified the District that it was unable
to obtai n the requi red bondi ng. At that time, Contractor was put on noti ce by
certified letter that it was in default of the bid request and contract requirements
and had seven days to correct this def~ult.
The Contractor has tried unsuccessfully to obtain the requi red bonding to comply
with the bid request. Since the Contractor cannot comply with the terms of the bid
request thus creati ng a maj or materi al vari ance, he shoul d not be awarded the
contract. Under such ci rcumstances, one recourse for the Di stri ct woul d be to
accept forfeiture of a bi d bond. However, the engi neer' s estimate was $70,000,
which is less than. the $100,000 amount that the District would normally use to
requi re a bi d bond. Thi s procedure is used to encourage small and minority
contractors to bid on District projects. Therefore, no bid bond was provided with
this specific bid request.
Custom Controls and Electric Company has performed work successfully in the past for
the District by using the bonding capacity of Amelco Electric. Amelco Electric will
not be a subcontractor on District Project No. 10057. Custom Controls and Electric
Company has not been successful in obtaining bonding on their own.
The schedule for this work is critical due to the impact of impending wet weather on
pumpi ng stati on flows. The second lowest responsi bl e bi dder, Cl assi c El ectri c &
Data, whose bid amount is $67,500, which is $12,600 higher than the bid from Custom
Controls and Electric Company, has also performed satisfactory work for the District
and has experienced no problems obtaining bonding.
INITIATING OEPT OIV
I_~~
1:>8:'0 9 ~', OJ R
I
I
,
SUBJECT
RESCIND NOTICE OF AWARD AND REJ ECT QJSTOM CONTROLS AND
ELECTRIC COMPANY'S BID AS BEING NONRESPONSIVE, AND AUTHORIZE
AWARD OF CONTRACT FOR DISTRICT PROJECT NO. 10057, LARWIN
PUMPING STATION UPGRADE, TO THE SECOND LOWEST RESPONSIBLE
BIDDER, CLASSIC ELECTRIC & DATA
POSITION PAPER
PAGE
DATE
2
OF
2
October 13, 1989
RECO~NDATION: Rescind Notice of Award and reject Custan Controls and Electric
Company's bid as being nonresponsive, and authorize award of the contract for
District Project No. 10057, Larwin Pumping Station Upgrade, to Classic Electric &
Data, the second lowest responsible bidder in the amount of $67,500.
....-------.
13028-9/85
.
Centra :ontra Costa Sanitar) listrict
BOARD OF DIRECTORS
PAGE 1 OF2
POSITION
PAPER
BOARD MEETING OF
October 19,1989
NO.
v.
CONSENT CALENDAR 4
QUITCLAIM SEWER EASEMENT TO MARRIOTT CORPORATION,
JOBS 4630 AND 3148, SUBDIVISION 6949, LOT 1,
SAN RAMON AREA
DATE
October 10, 1989
TYPE OF ACTION
SUBJECT
APPROVE QUITCLAIM
OF EASEMENT
SUBMITTED BY
Dennis Hall
Associate Engineer
INITIATING DEPT./DIV.
Engineering Department/
Construction Division
ISSUE: Marriott Corporation, owner-developer of Lot 1 of Subdivision 6949,
has requested the District to quitclaim the subject sewer easement.
BAO<GROUND: The subj ect easement was dedi cated to the Di stri ct at no cost when
the map of Subdivision 6949 was filed on August 18, 1988. This easement was
created to provide for sewer service to Lot 3 which adjoins said Lot 1 on its
northeast side. It has since been determined that this adjoining lot can be best
served by a private side sewer. Marriott Corporation has granted a la-foot wide
private sewer easement to repl ace the subj ect publ ic easement and has pai d the
District's quitclaim processing fee. The subject easement is no longer needed and
may be quitclaimed.
This project has been eval uated by staff and determined to be exempt fran the
California Environmental Quality Act (CEQA) under District CEQA Guidelines Section
18.6, since it involves a minor alteration in land use limitations.
RECOMMENDATION: Approve Quitclaim Deed to Marriott Corporation, Jobs 4630 and
3148, authorize the President of the District Board of Directors and the Secretary
of the District to execute said Quitclaim Deed, and authorize the Quitclaim Deed
to be recorded.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
JSM
RAB
G.~NG.
INITIATING DEPT./DIV.
1302A-9/85
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QUITCLAIM EASEMENT
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SAN RAMON AREA
.
Centra~ -:ontra Costa Sanitar) Jistrict
BOARD OF DIRECTORS
PAGE 1 OF 2
POSITION
PAPER
BOARD MEETING OF
October 19, 1989
NO.
v. CONSENT CALENDAR 5
SUBJECT
DATE
QUITClAIM SEWER EASEMENT TO ANDREW M. KWIECIEN, ETUX,
JOB 4057, PARCEL C OF 91 P.M. 3, LAFAYETTE AREA
October 12, 1989
TYPE OF ACTION
APPROVE QUITClAIM
OF EASEMENT
SUBMB~1fn~~ Hall
Associate Engineer
INITIATING DEPT./DIV.
Engineering Department/
Construction Division
ISSUE: Andrew M. Kwiecien, etux, owner of Parcel C of 91 P.M. 3, has requested
the District to quitclaim the subject sewer easement.
BACKGROUND: The subject easement was dedicated to the District at no cost when
the map of minor Subdivision 48-80 (91 Parcel Maps 3) was filed on November 14,
1980. This easement was created to provide for publ ic sewer service to the
property which adjoins said Parcel C on the east side of the minor subdivision
which is owned by Reliez Valley Associates. However, a public sewer was never
installed in this easement. It has since been determined that this adjoining
property can be best served by a private 4-inch si de sewer.
Andrew M. Kwiecien, etux, has granted a 5-foot wide private sewer easement to
Rel iez Valley Associ ates to repl ace the subj ect publ ic easement and has pai d the
District's quitclaim processing fee. The subject easement is no longer needed and
may be quitclaimed.
This project has been evaluated by staff and determined to be exempt fran the
California Environmental Quality Act (CEQA) under District CEQA Guidelines Section
18.6, since it involves a minor alteration in land use limitations.
RECOM\tENDATION: Approve Quitclaim Deed to Andrew M. Kwiecien, etux, Job 4057,
authorize the Presi dent of the Di strict Board of Di rectors and the Secretary of
the District to execute said Quitclaim Deed, and authorize the Quitclaim Deed to
be recorded.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
1302A-9/85
1Il'f"
DH
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JSM
RAB
INITIATING DEPT./DIV.
RELlEZ VALLEY ASSOCIATES
QUITCLAIM 10' PUBLIC
SEWER EASEMENT
QUITCLAIM EASEMENT
JOB NO. 4057
LAFAYETTE AREA
.
Central ~ontra Costa Sanitary "istrict
BOARD OF DIRECTORS
PAGE 1
OF
1
POSITION
PAPER
BOARD MEETING OF
October 19, 1989
NO.
v.
CONSENT CALENDAR 6
SUBJECT
APPROVE A REQUEST FOR ATTENDANCE AT ll-lE ASH
UTIL IZATION AND STABIL IZATION OONFERENCE
DATE
October 13, 1989
TYPE OF ACTION
APPROVE TRAINING
REQUEST
SUBMIB1i~tBYL. Mi ch a 1 cz yk
Senior Engineer
INITIATJNG OEPT./DIV. D tm t/
~nglneerlng epar en
P1 anni ng Divi si on
ISSUE: Board approval is required for training requests not specified in the
training budget and for travel out of state that exceeds $500.
BACKGROUND: As manager of the Sludge/Ash Handling Project, project engineer for
the Sol ids Hand1 i ng Facil iti es P1 an, and staff support for sol i d waste
activities, Lynne Bunker, Associate Engineer, is responsible for many decisions
regarding future ash hand1 ing, recyc1 ing, and disposal. The three major ash
projects now underway are Sl udge/Ash Hand1 ing Project, Ash Disposal, and Sol ids
Handling Faci1 ities P1 an. Due to increasing disposal costs and increased
difficulty in obtaining disposal sites for District ash, the District staff is
actively pursuing alternative ash treatment and disposal technologies.
The Ash Utilization and Stabilization conference, to be held November 8-9, 1989,
in Arlington, Virginia, will cover various aspects of ash processing and
recycling/disposal. The technical program will include presentations on
conditioning and treatment methods, utilization practices, sampling and
characterization, regulations, and environmental issues. Nationally and
internationally recognized ash experts are making the technical presentations.
This conference will address issues related to various ash-related industries in
several countries and will discuss current applications and brand new technology.
The entire cost, including transportation and lodging, is approximately $1,500.
An overrun of $1,500 in the Planning Division Training Budget would likely occur
as a result of inclusion of this activity.
RECOMMENDATION: Approve attendance of Lynne Bunker, Associate Engineer, to the
Ash Utilization and Stabilization Conference.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
, (J(;;::G.
ROGER J. DOLAN
INITlA TING DEPT./DIV.
:JM~
JM j:::.. {j-v
1302A.9/85
.
Centra~ ~ontra Costa Sanitary Jistrict
BOARD OF DIRECTORS
PAGE 1 OF 5
POSITION
PAPER
BOARD MEETING OF
October 19, 1989
NO.
VI.
ENGINEERING
1
SUBJECT
REQUIRE A DEQARATION OF RESTRICTIONS FOR LOCAL
IMPROVE~NT DISTRICT 57, DISTRICT PROJ ECT 4650
DATE
October 10, 1989
TYPE OF ACTION
FORMATION OF LID
SUBMITTED BY
Jay S. McCoy
Construction Division Manager
INITIATING DEPT/DIV.
Engineering Department/
Construction Division
ISSUE: Staff recommends that the Di strict requi re the property owners who are
proposing the formation of Local Improvement District (LID) 57 to execute a
document limiting the future liability of the District in the case that landslides
occur in the vicinity of the LID's proposed sewers.
BACKGROUND: A group of seven property owners in the Brown Avenue area of
Lafayette have requested that a LID be formed by CCCSD for the purpose of
financing the installation of public sanitary sewer facilities to serve their
properti es. These properti es are located with i n the ori gi na 1 bounda ry of the
District. The seven properties and the proposed sewer system are shown on Exhibit
A.
The Board of Directors, at its meeting of April 6, 1989, considered the formation
of the LID and gave preliminary concurrence with said formation. Since that time,
plans for the extension of a sanitary sewer have been submitted by Mr. David Hop
(a civil engi neer who is worki ng for the property owners) for Di stri ct pl an
review. A geotechnical report prepared by the Buller Group, Inc. (LID
geotechnical engineer) has al so been submitted. District staff has reviewed the
plans and geotechnical report. During the District's review, potential problems
with soil instability were noted.
The 2,000 feet of proposed sanitary sewer facilities will be located in off-road
easements, and private roadways. In the off-road easement areas, CCCSD will be
the onl y public agency with easement ri ghts. In the private roadway areas, two
other public agencies, P.G.& E. and EBMUD, have easement rights. The proposed
alignment would result in approximately 1,000 feet of the sewer being located in
new easements across a hill si de. The current practi ce of staff is to di scourage
the installation of new sewers in easements, especially in hillside areas because
of the difficulty of maintaining easement sewers and the potential for landslides.
Because some of the sewers to serve LID 57 are proposed for install ati on in
easements, various alternative alignments were evaluated. The possibility of
requi ri ng that the sewer system be privatel y owned and mai ntai ned was al so
considered. Staff has concluded that the proposed alignment is the best apparent
alternative and that the sewer should be publicly owned and operated.
INITIATp/;./DIV.
1}fJfJ
COMMENDED FOR BOARD ACTION
1302A-9/B5
JSM
RAB
KA
SUBJECT
POSITION PAPER
REQUIRE A DECLARATION OF RESTRICTIONS FOR LOCAL
IMPROVEMENT DISTRICT 57, DISTRICT PROJECT 4650
PAGE
DATE
2
OF 5
October 10, 1989
The design and construction standards applicable to the proposed project have been
reviewed. Recommendations made by the District's geotechnical consultant will be
required to be incorporated into the design so that all but approximately 100 feet
of the proposed 2,000 feet of sewer pipeline will be installed in stable material
consisting of dense sands and stiff clays. The hillside through which the
remaining 100 feet of pipeline will be routed will be required to be reconstructed
to provide a stable foundation for the pipeline. The construction will be
required to be done in accordance with District Standard Specifications and will
be inspected by both District personnel, the LID geotechnical consultant, and the
District's geotechnical consultant. The design, the construction standards and
inspection procedures should minimize, to the greatest extent feasible, the
possibility that future landslides would damage the proposed sewers.
However, there are other stability rel ated probl ems whi ch coul d pose potenti al
future liabl1ities for the District. These liabl1ities could arise due to
landsl ides or other stabl1 ity problems which could occur over or in the vicinity
of the proposed sanitary sewer facilities. The sewers will be installed in stable
materi al, but the sol1 above the native dense sands and stiff cl ays may sli de in
the future due to the steepness of the terrain in the Brown Avenue area. These
stability problems could result in the District being brought into future
litigation concerning responsibility for repairing private roads or other private
property.
District Counsel has prepared a document known as a Declaration of Restrictions,
Covenants, Conditions and Agreements Affecting Real Property (Declaration of
Restrictions) which will place the responsibility for long-term liabilities
associated with soil instability problems on the participants in the LID. The LID
participants, in signing Declarations of Restrictions, declare that their
properti es shall be subj ect to the Decl arati on of Restrictions and that the
participants will indemnify the District from claims, demands, or judgments
arising from the installation or operation of the District's sewer facilities
except for active negligence or willful misconduct of the District. The District
would assume responsibility for sewer repairs according to its customary and usual
practice.
Staff recommends that each of the property owners who are a part of the proposed
LID be required to execute a Declaration of Restrictions as a condition for the
District forming the LID. Also, the Declaration of Restrictions will be recorded
and will become an encumbrance on the lands for future property owners. Through
each of the owners signing a Declaration of Restrictions, staff intends to limit
the District's long-term liabilities.
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13028-9/85
SUBJECT
POSITION PAPER
REQUIRE A DECLARATION OF RESTRICTIONS FOR LOCAL
IMPROVEMENT DISTRICT 57, DISTRICT PROJECT 4650
PAGE
DATE
3
OF 5
October 10, 1989
Staff bel ieves that the recommended approach best accompl ishes the District's
responsibility to provide sewer service while protecting present customers of the
District from excessive future costs. Staff recommends that the District proceed
with the formation of the LID and the installation of a public sewer to serve the
Brown Avenue area contingent upon the property owners executing Declarations of
Restri cti ons.
The property owners who are forming the LID will be invited to the Board meeting
and may comment on the proposed project. A tentative schedule of future events is
attached as Exhibit B for the information of the Board and the owners.
RECOMMENDATION: Require the seven property owners in LID 57 to sign a Declaration
of Restricti ons as a conditi on of formi ng the LID. Concur with conti nui ng the
formation of LID 57.
---------
13028-9/85
/
1 Macais
2 Sullivan
3 Grossgart
4 Chapman
5 Swanson
6 Sponzilli
7 Lenci/Dol1
U Unimproved
I Improved
- 0- - Ex. Sewer
--c>-- Proposed
Sewer
Exhibit
BROWN AVENUE SEWER PROJECT
PROPOSED ASSESSMENT DISTRICT
A
2523-9/88
EXHIBIT B
FUTURE BOARD ACTIONS
LI D 57
BR()IN AVENUE/SKY LANE
1. Adopt a Resolution accepting petitions.
2. Adopt a Resolution approving a proposed boundary map.
3. Adopt a Resolution requesting jurisdiction from the city of
Lafayette.
4. Adopt a Resolution approving a "Negative Declaration."
5. Adopt a Resolution directing filing of the boundary map with
County Recorder.
6. Adopt a Resolution approving agreement for legal services
with the Bond Counsel.
7. Adopt a Resolution approving agreement for engineers services
with the LID engineer.
8. Adopt a Resolution of Intention to order improvements.
9. Adopt a Resolution accepting the engineer's report for the
LID and setting the hearing date for receiving public
testimony on the LID.
10. Adopt a Resolution calling for construction bids.
11. Direct staff to give Notice of Improvements for bidding
purposes.
12. Hold a Public Hearing, approve the engineer's report,
assessment spreads, and assessment district.
13. Adopt a Resolution awarding the construction contract.
14. Adopt a Resolution authorizing approval of change orders.
15. Authorize funds for the project.
16. Adopt a Resolution to claim exemption from audit by the State
Treasurer's Office.
17. Adopt a Resolution determining assessments remaining unpaid.
18. Adopt a Resolution ordering the sale of bonds.
19. Adopt a Resolution ordering the issuance of bonds.
20. Accept the construction contract.
TENTATIVE
DATE
11-16-89
11-16-89
11-16-89
11-16-89
01-18-90
01-18-90
01-18-90
01-18-90
01-18-90
01-18-90
01-18-90
03-15-90
03-15-90
03-15-90
03-15-90
04-19-90
04-19-90
04-19-90
04-19-90
07-05-90
.
Centra~ ":ontra Costa Sanitar\; Jistrict
BOARD OF DIRECTORS
PAGE 1 OF 3
POSITION PAPER
BOARD MEETING OF
NO.
VI.
ENGINEERING 2
SUBJECT
AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO
EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS
TO COMPLETE THE DESIGN OF THE I680/SR24 SEWER
RELOCATIONS PHASE 2, DISTRICT PROJECT 4654
DATE
October 13 1989
TYPE OF ACTION
AUTHORIZE AGREEMENT
SUBMITTED BY
Tad J. Pil ecki
Senior En ineer
Department
Division
ISSUE: Board authorization is required for the General Manager-Chief Engineer
to execute a consulting engineering agreement/amendment when it is greater than
$50,000.
BACKGROUND: To accommodate construction of the I680/SR24 Interchange Expansion,
the District has been requested by Caltrans to relocate a number of its sewers.
The sewer relocation projects have been split into phases to better coordinate
with the Caltrans' five-phase interchange project. Construction on the first
phase of sewer relocations was completed in December of 1988.
In a letter dated March 31, 1989, Caltrans requested the District to prepare
detailed plans and specifications for the second phase of the sewer relocations.
The second phase of sewer relocations was to consist of 11 relocations between
the South Main undercrossing and the North Main overcrossing. To meet the short
schedule imposed by Caltrans, the Board, on staff/s recommendation, approved a
contract with John Carollo Engineers (JCE) of Walnut Creek with a cost ceiling
of $112,955 at its May 4, 1989 Board meeting.
Since the March 31, 1989 request, Caltrans has increased the scope of the Phase 2
sewer relocations. The Phase 2 Project now consists of 17 relocations, 18
abandonments, and a temporary pump station at Overlook Drive. To complete the
preparation of plans and specifications for the large Phase 2 Project, a new cost
ceiling of $247,800 has been negotiated with JCE. This amounts to a $134,845
increase in the original contract amount of $112,955. The Phase 2 sewer
relocation project is expected to bid in December of 1989 with construction
completion by July 1, 1990.
Attachment 1 provides a detailed breakdown of the design budget. The predesign
level total project cost for the Phase 2 relocation is estimated to be
$3,626,000. The total project cost for all Caltrans relocations associated with
the I680/SR24 Expansion is $7,077,400. Caltrans reimburses in arrears, so the
Board must authorize funds for the project even though Caltrans will compensate
the District for all costs attributable to the I680/SR24 Interchange Expansion.
The I680/SR24 Sewer Relocations Phase 2 Project is described in detail starting
on page C$-32 of the 1989-90 Capital Improvement Budget.
INITIATING DEPT./DIV.
G . ~ENG.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
1302A-9/85
SUBJECT
AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO
EXECUTE AN AMENDMENT WITH JOHN CAROLLO ENGINEERS
TO COMPLETE THE DESIGN OF THE I680/SR24 SEWER
RELOCATIONS PHASE 2, DISTRICT PROJECT 4654
POSITION PAPER
PAGE 2 OF 3
~ttober 13, 1989
This project has been evaluated by staff and determined to be exempt from the
California Environmental Quality Act (CEQA) under CEQA Statute 21080.21 since
it involves construction of pipelines of less than one mile in total length which
will be located in streets and easements. A Notice of Exemption will be filed
with the County Clerk.
RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute a Cost
Reimbursement Contract Amendment for the amount of $134,845 with John Carollo
Engineers to complete the design of Phase 2 of the I680/SR24 Sewer Relocations,
DP 4654.
13028-9/85
ATTACHMENT 1
I680/SR24 SEWER RELOCATIONS, PHASE 2
DESIGN BUDGET
Contingency (10%)(2)
Total Design Budget
$247,800
40,000
36,500
15,000
76.000
415,000
41. 500
$456.500
John Carollo Engineers
Soils Engineering
Aerial Survey
District Forces (Ground Survey)
District Forces (Design, Project
Management) (1)
Subtota 1
(1) District forces will direct the consultant's work, obtain and coordinate
utility information, provide potholing and TV inspection, prepare front
end specifications, provide technical review. prepare R/W description,
coordinate aerial and geotechnical consultants, and develop planning
evaluations.
(2) If necessary, District staff will use this contingency to issue consultant
contract change orders or fund additional force account work.
.
Centra~ ;ontra Costa Sanitar) Jistrict
BOARD OF DIRECTORS
PAGE 1
OF 1
POSITION
PAPER
BOARD MEETING OF
October 19, 1989
NO.
x. BUDGET AND FINANCE
1
SUBJECT
RECEIVE ll-IE AUDITED FINANCIAL STATEMENTS FOR ll-IE FISCAL
YEAA ENDED JUNE 30, 1989
DATE
October 10, 1989
TYPE OF ACTION
RECEIVE AUDITED
FINANCIAL STATEMENTS
SUBMITTED BY
INITIA TING DEPT.lDIV.
Walter Funasaki, Finance Officer
Administrative/Finance & Accounting
~: The audited financial statements of the Central Contra Costa Sanitary
District for the fiscal year ended June 30, 1989, and related letter reports are
being submitted to the Board of Directors.
BACKGROUND: The firm of Johnston, Gremaux and Rossi, Certified Public Accountants,
has completed its examination of the District's financial statements for the fiscal
year ended June 30,1989, and has submitted the audited financial statements and
auditor's opinion thereon.
In performing their examination of the financial statements, the auditors evaluated
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 advise District management of any major weaknesses
noted in the system of internal accounting controls. As indicated in the managment
1 etter provi ded as Attachment I, the audi tor's eval uati on di scl osed no condi ti on
that was considered to be a material weakness in the system of internal accounting
controls.
In addition to the custanary examination of the financial statements, Johnston,
Gremaux and Rossi was requested to complete a performance evaluation of the
District's temporary investments, and to review a test sample of purchasing
transacti ons and award of service contracts. The resul ts of the eval uati on and
review are provided in a separate letter report as Attachment II.
The audited financial statements, auditor's opinion, management letter and letter
report were submitted in draft form to the Board's Budget and Finance Committee for
revi ew.
State and local governments whi ch receive federal fi nanci al assi stance of $100,000
or more annually are subject to the requirements of the Single Audit Act of 1984 for
fiscal years beginning after December 31, 1984. As Clean Water Grant proceeds
received by the District in the fiscal year ended June 30, 1989 were less than
$100,000, the requirements of the Single Audit Act did not apply to the audit by
Johnston, Gremaux and Rossi.
RECOMMENDATION: Receive the audited financial statements, auditor's opinion,
related management letter and letter report for the fiscal year ended June 30, 1989.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
INITIA TING DEPT.lDIV.
~
1302A-9/B5 WF
SSS/Pos. Paper #2/Rec Fin Stmt
.
Centra. ~ontra Costa Sanitar) Jistrict
BOARD OF DIRECTORS
PAGE 1 OF 4
POSITION PAPER BOARD MEETI~c~ober 19, 1989
NO.
x. BUDGET AND FINANCE 2
D~TE
uctober 12, 1989
SUBJECT
RECEIVE ll-IE ANNUAL STATEMENT OF INVESTMENT POLICY
TYPE OF ACTION
RECEIVE INVESTMENT
POLICY
SUBMITTED BY
Walter Funasaki, Finance Officer
INITIA TING DEPT./DIV
Administrative/Finance & Accounting
ISSUE: Assembly Bill No. 1073, which was enacted in 1984, amended the Government
'CO'de'to require the treasurer or chief fiscal officer of a local agency to "annually
render to the 1 egi sl ati ve body of the local agency a statement of investment
pOlicy."
BACKGROUND: The Ca1 Horni a 1 egi sl ature amended Government Code Secti on 53646 to
requi re that:
a. the treasurer or chief fiscal officer annually render to the 1egis1 ative
body of the local agency a statement of investment policy.
b. the treasurer or chief fiscal officer render a monthly report to the chief
executive officer and legislative body of the local agency showing the type
of investment, i nsti tuti on, date of maturi ty, amount of deposi t, current
market val ue for all securiti es with a maturi ty of more than 12 months,
rate of interest, and such data as may be required by the local agency.
c. Section 53646 shall remain in effect only until January I, 1991, and as of
th at date is repeal ed, un1 ess a 1 ater enacted statute, whi ch is enacted
before January I, 1991, deletes or extends that date.
An investment report is submitted with the District's monthly financial statements
to the General Manager-Chief Engineer and the Board of Directors which complies with
all requirements of amended Section 53646.
The Contra Costa County Treasurer's Office adheres to the Di strict's investment
policy in investing District funds.
The attached Policy and Procedure represents the current investment policy which was
last revised on August 4, 1988, as a result of the decision of the Board of
Directors that investments in collateralized certificates of deposit and bankers
acceptances be suspended and replaced by investments in Treasury Bills and two or
three year Treasury Notes. The maximum maturity provision of the investment policy
was consequently amended to specify that investments in Treasury Notes, in addition
to the Local Agency Investment Fund, wou1 d not be subj ect to the one year maximum
maturity limit. As of July 1989, the District's investments no longer include
certificates of deposit or bankers acceptances.
The District's current investment policy is submitted for review and comment by the
Board of Directors.
RECOtIENDATI<W: Receive the annual rendering of the District's investment policy
in compliance with Government Code Section 53646 and modify, as appropriate.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
1302A-9/85
SSSjPosition Paper #ljInvest Polic
<rCSD
Central Contra Costa Sanitary District
NO.
POLICY & PROCEDURE
EFFECTIVE
August 1988
SECTION
SUBJECT
INVESTMENT POLICY
ESTABLISHED BY
The Board of Directors
REFERRING TO:
The investment policy of the Central Contra Costa Sanitary District is embodied in
the following eleven sections:
I. Statement of Objectives
The temporary investment portfolio of the District shall be designed to
attain a market-average rate of return, taking into account the District's
investment risk constraint and prudent investment principles.
II. Permissible Investments
Withi n the constrai nts prescri bed by the Government Code of the State of
California for permissible investments, the District's investment portfolio
will only be invested in the following instruments:
o United States Treasury Bills and Notes, and obligations of
government agencies for which the full faith and credit of
the United States are pledged.
o Obligations of the Federal Home Loan Bank <FHLB>, Federal
Nati ona1 Mortgage Associ ati on <FNMA>, Government Nati ona1
Mortgage Association <GNMA> and Small Business Administration
<SB A> .
o
Bankers Acceptances, drawn on and accepted by
bank, which are eligible for purchase by
Reserve System.
a commerci a 1
the Federal
o Co11 atera1ized Certi fi cates of Deposi t issued by a Federal or
State chartered bank or a Federal or State chartered savings and
loan association.
o Commercial Paper of prime quality limited to corporations
with assets over $500,000,000.
o Repurchase Agreements for a period less than 30 days.
o Local Agency Investment Fund of the State of California.
SSS/Position Paper II/Invest Po1ic
I SHEET
OF
<C<SD
Central ~ontra Costa Sanitary District
POLICY & PROCEDURE
SUBJECT
INVESTMENT POLICY
III. Banks and Dealers
The District will use the services of the Treasurer's Office of the County
of Contra Costa which will transact the District's investment decisions in
compliance with the requiranents described in this investment policy. The
County Treasurer's Office will execute the District's investments through
such brokers, dealers, and financial institutions as are approved by the
County Treasurer, and through the State Treasurer's Office for investments
in the Local Agency Investment Fund.
IV. Maturi ti es
The maximum maturity for investments of the District is one year. Prior
approval of the Board of Directors must be obtained to acquire investments
with maturities beyond one year. However, investments in Treasury Notes
and the Local Agency Investment Fund would not be subject to the one year
maximum maturity.
V. Diversification
To minimize the risk of loss through default, the total amount invested in
a single issuer will not be greater than 15% of the District's investment
portfolio value, except that the 15% limitation will not apply to United
States Treasury Bills and Notes and investments in the Local Agency
Investment Fund.
VI. Ri sk
Credit and market risks will be minimized through adherence to the list of
permissible investments, a limit on maximum maturities and the limitation
on the total investment in a single issuer.
VII. Delegation and Authority
The District Finance Officer will be responsible for investment
transactions which should be made in accordance with this investment policy
and within the internal controls described in Section IX.
VIII.
Prudence
Prudent judgment must be exercised by the District Finance Officer
responsible for investment transactions undertaken in accordance with this
investment policy.
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<CCSD
Central Contra Costa Sanitary District
POLICY & PROCEDURE
SUBJECT
INVESTMENT POLICY
IX. Controls
The Di stri ct Fi nance Officer will establ ish subsi di ary accounti ng records
of each investment which will enable the determination of income earned
monthly and through maturity, and the balancing of the principal amounts to
a control account in the general ledger. Internal control procedures will
require the countersignature of the Deputy General Manager for all
transactions which are initiated by the Finance Officer. The dollar limit
of the Deputy General Manager wi 11 be $5 mi 11 i on. Investment transacti ons
which exceed $5 million will require the additional approval of the
General Manager-Chief Engineer. Such internal controls are to be reviewed
by the District's independent auditors annually.
X. Reporting
The District Finance Officer will annually render a statement of investment
pol icy to the Board of Di rectors. The Fi nance Officer will submit a
monthly report to the District's General Manager-Chief Engineer and Board
of Di rectors showing the type of investment, issuer, dates of issue and
maturity, amount of deposit, current market value of all securities with a
maturity of more than 12 months, and rate of interest.
XI. Performance Evaluation
A performance evaluation will be completed by the District's independent
auditors every four years, commenci ng with the 1984-1985 fiscal year, to
determine whether the investment objective of achieving a market-average
rate of return is bei ng real ized. In determi ni ng the market-average rate
of return, the average return of three month U.S. Treasury bills will be
used.
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