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Home My WebLink AboutAGENDA BACKUP 04-19-90 . Central Contra Costa Sanitary Ilistrict BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF April 19, 1990 NO. v. CONSENT CALENDAR 8 SUBJECT ADVISE THE BOARD OF THE CLOSE OUT OF THE TREATMENT PLANT LANDSCAPING, PHASE I PROJECT (DISTRICT PROJECT 10031A) DATE April 10, 1990 TYPE OF ACTION INFORMATIONAL SUBMITTED BY Kenneth Clark Assistant En ineer INITIATING DEPT/DIV Engineering Department/ Construction Division ISSUE: All work has been completed on the Treatment Plant Landscaping Phase I Project and the project can now be closed out. BACKGROUND: The contract work included providing landscaping at the main entry to the District Treatment Plant. The landscaping included a sign wall, lighting, a pond with fountain, turf areas, trees, shrubs, and an irrigation system using reclaimed water. Refer to the 1989-90 Capital Improvement Budget, page TP 107, for more information. Consolidated Landscape Services, Inc., was issued a Notice to Proceed on June 12, 1989. The original contract completion date was December 10, 1989. All work was completed and the District was able to take beneficial use on January 12, 1990. Time extensions were granted to establish a new contract completion date of January 12, 1990. Consolidated Landscape Services, Inc.'s, original contract was for $298,900. There were eight change orders issued on the project totaling $13,236.40 resulting in a total paYment of $312,136.40 to Consolidated Landscape Services, Inc. The change orders were for modifying the pond wall, adding mow strips, providing sod in lieu of seeded turf, making minor electrical changes, and reducing the topsoil quantity. The total budget for the project was $450,800. The total completed project cost is $436,154 which results in $14,646 being returned to the Treatment Plant Program. RECOMMENDATION: This item is presented to the Board for information. No action is necessary. 1302A.9/85 RSK JSM REVIEWED AND RECOMMENDED FOR BOARD ACTION KC JiJJ MH r:J. ilA 7JIl/ ;:;;'TING DEPT.lDIV. . Centra~ ~ontra Costa Sanitary Jistrict BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF A ril 19 1990 NO. v. CONSENT CALENDAR 9 SUBJECT AUTHORIZE LEAVE WITHOUT PAY FOR DON BALESTRIERI, MAINTENANCE CREW MEMBER II, THROUGH SEPTEMBER 21, 1990 DATE A ril 13, 1990 TYPE OF ACTION PERSONNEL SUBMITTED BY Yvonne Brown o erations Su INITIATING DEPT./DIV. ervisor Collection System Operations ISSUE: Don Balestrieri, Maintenance Crew Member II, has been off work since September 27, 1989, for medical reasons. The Board granted leave without pay on December 21, 1989, after all of Mr. Balestrieri's leave was depleted. Additional time is required to resolve Mr. Balestrieri's medical condition and Mr. Balestrieri has requested that his medical leave of absence be extended through September 21, 1990. RECOMMENDATION: Authorize Leave without Pay for Don Balestrieri, Maintenance Crew Member II, through September 21, 1990. REVIEWED AND RECOMMENDED FOR BOARD ACTION JAL CRF INITIATING DEPT./DIV. 1302A-9/85 Ut- ~ . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF April 19, 1990 NO. V. CONSENT CALENDAR 10 SUBJECT ADOPT RESOLUTION APPROVING PURCHASE OF PARCEL NO. 159-140-042; APPROXIMATELY 48.96 ACRES, END OF BLUM ROAD, MARTINEZ AND AUTHORIZE $4,044,500 FROM THE SEWER CONSTRUCTION FUND TO THE GENERAL IMPROVEMENTS PROGRAM ACOOUNT FOR DP NO. 20065 DATE April 16, 1990 TYPE OF ACTION ADOPT RESOLUTION AUTHORIZING FUNDS SUBMITTED BY INITIATING DEPT IDIV Paul Morsen, Deputy General Manager Administrative ISSUE: The District Board of Directors' adoption of a resolution is required for the purchase of real property by the District. BACKGROUND: The condemnation action between the District and Western Title Insurance Company (Lagiss) was settled on April 11, 1990, for the acquisition of Parcel No. 159-140-042; approximately 48.96 acres, District Project No. 20065. The price of the property is $5,000,000 with each side paying its own court costs. The total cost to the District is estimated to be $5,294,000, which includes all costs of attorneys, appraisers and consultants from project inception. Also, this amount includes the costs of perimeter fence repair. The Board has previously authorized $1,249,500 in the Capital Improvement Budget for District Project No. 20065. The Board's authorization is needed to transfer $4,044,500 from the Sewer Construction Fund to the General Improvements Program Account for this project. RECOMMENDATION: Approve the purchase of Assessor's Parcel No. 159-140-042 from Western Title Insurance Company (Lagiss) in the amount of $5,000,000, in accordance with the settlement agreement, and authorize $4,044,500 from the Sewer Construction Fund to the General Improvement Program Account. EVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/ RESOLUTION NO. 90- A RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY BETWEEN THE CENTRAL roNTRA roSTA SANITARY DISTRICT AND WESTERN TITLE INSURANCE COMPANY (LAGISS) BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT, the District hereby consents to the execution of all applicable legal documents necessary to obtain Assessor's Parcel No. 159-140-042 between the Central Contra Costa Sanitary Di strict and Western Title Insurance Company (Lagiss); THAT, the District staff is hereby authorized and directed to execute or have executed all required documents; THAT, the President and Secretary of the District are hereby authorized and directed to accept the Deed and/or the Final Judgment of Condemnation for and on behal f of the Central Contra Costa Sanitary District; and THAT, the District staff is authorized and directed to have said Deed and/or the Final Judgment of Condemnation recorded. PASSED AND ADOPTED this 19th day of April, 1990, by the Di stri ct Board of the Central Contra Costa Sanitary District by the following vote: AYES: Membe rs : NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California roUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Kenton L. Alm District Counsel . Centra~ ~ontra Costa Sanitary ..Jistrict BOARD OF DIRECTORS PAGE 1 OF 3 POSITION PAPER BOARD MEETING OF April 19, 1990 NO. V. CONSENT CALENDAR 11 SUBJECT REQUEST FOR APPROVAL OF REGISTRATION DIFFERENTIAL FOR BA T. THAN, ASSISTANT ENGINEER, PLANT OPERATIONS DEPARTMENT DATE A ril 11, 1990 TYPE OF ACTION Personnel SUBMITTED BY INITIATING DEPT.lDIV Charles ~~. Batts Plant Operations Department Issue: Ba T. Than has passed the California Engineering Registration Examination and is now a registered Civil Engineer. It is requested that the District grant him the registration differential. Background: Ba T. Than is an Assistant Engineer in the Plant Operations Department Maintenance Engineering Section. This classification does not require registration as a progessional engineer. Sa T. Than has consistently demonstrated an ability to assist in the accomplishment of District activities requiring a professional level of skills and experience normally expected of a registered engineer. Mr. Than was notified of his successful completion of registration requirements on February 22, 1990. Recommendation: Grant Sa T. Than the District's one-step salary increase for professional registration differential effective February 22, 1990. REVIEWED AND RECOMMENDED FOR BOARD ACTION CRF Central Contra Costa sanitary District February 27, 1990 TO: OiARLES W. BATTS JAMES L. BELa-tEn46 REGISlRATION DIF;''':AL FOR BA lHAN FROM SUBJECT: This memorandum serves as a recommendation for Ba Than, Assistant Engineer, to receive the regi strati on differenti al as all owed under the current Memorandum Of Understanding (MOU) with Central Contral Costa Sanitary- District Employees' Association Public Employees' Local No. l. Ba is a registered Civil Engineer in the state of Texas. Ba was notified in a letter dated February 22,1990, that he passed the California professional engineering registration examination and is now a registered Civil Engineer in the state of California. Ba is currently working on numerous projects that benefit from his knowledge and experience as a professional engineer. Typical of a project would be the Dechlorination Access Bridge Project. This project has required Ba to evaluate the unstable soil conditions and develop an economical and safe method of constructing a man bridge for safe, year-round access to this important structure. While in the Engineering Department, Ba investigated several trenchless technologies for sewer pipe installation. One of the technologies was the Fl owMol e Demonstrati on Proj ect. Ba desi gned the sewer pi pe alignment and supervised the field work for which he received a Board of Directors commendation. - Ba is performing at a professional independent judgment. He is well dif.ferenti al. Ba is currently on the list for the Engineering Department. 1 evel of engi neeri ng, exerci sing deserving of the registration Associ ate Engineer's el i gi bi 1 ity JLB:ck cc: B. Than Personnel File POD/JLB/M-Reg Diff STATE OF CALIFORNIA-STATE AND CONS,- ..cR SERVICES AGENCY . Governor DEPARTMENT OF IOnsumer ~AFFOlrs Q FEBRUARY 22, 1990 REGISTRATION NO.1 RENEWAL DATE. C 045341 09/30/90 THAN BA TRONG 319 STONY HILL CIRCLE OAKLEY CA 94561 Congratulations! We are pleased to inform you that you have successfully passed the recent professional engineering registration examination. This letter will serve as temporary evidence that you now hold a valid registration as a profess- ional engineer. A formal certificate will be prepared and mailed to you, as the board's workload permits. Your cer~ tificate number and the date of expiration are shown above. Please refer to the "Rules and regulations of the Board of Regis- tration for Professional Engineers and Land Surveyors" for infor- mation on the following subjects for which you are responsible. Rule 407 - Renewal of License and Related Fees Rule 411 - Seal Rule 412 - Address Change Of special importance is that all certificates are subject to re- newal and the payment of a renewal fee will be required. A renewal notice will be mailed to you several weeks before your date of expiration, but even if you do not receive the notice, you are still responsible for renewing your certificate within 30 days of the expiration date. While~ a requirement, you may wish to order a seal or stamp. They are usually available from any stationery store or rubber stamp company. Rule 411 provides specific criteria on seals. The notices and newsletters from the board cannot reach you unless you have a current address on file. Please help by advising us of any change in your address. STATE BOARD OF REGISTRATION FOR PROFESSIONAL ENGINEERS AND LAND SURVEYORS 01E-88A (Rev. 7/83) . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OApril 19, 1990 NO. VI. SOLID WASTE 1 DAKpril 11, 1990 SUBJECT RECEIVE INITIAL REPORT ON REFUSE COLLECTION RATE STRUCTURE ALTERNATIVES TYPE OF ACTION RECEIVE REPORT SUBMITTED BY Walter Funasaki Finance Officer INITIATING DEPT IDIV Administrative/Finance and Ac ISSUE: The Board of Directors has expressed its interest in reviewing refuse collection rate structure alternatives which promote solid waste minimization. BACKGROUND: During the setting of refuse collection rates effective July 1, 1989 and February 1, 1990, the Board indicated that it wished to consider a restructuring of the July 1, 1990 collection rates to foster reductions in solid waste by residential and commercial customers. Reduction in solid waste which is disposed of in landfills is mandated by escalating landfill disposal fees, out-of-county export agreement conditions and legislative decree. In pursuit of such reductions, the Board has implemented successful residential curbside recycling programs throughout the District, and has directed each franchised refuse collector to submit a commercial recycling program for its consideration. The District's present residential refuse collection rate structure provides for a monthly base rate for weekly service of a single 32- gallon can, and a single lower rate for each additional can. Included in the base rate are weekly trimmings pickup service and seasonal cleanup collections. The existing rate structure recognizes the lower incremental operating expense for COllecting the additional cans; however, such rate structure may be viewed as being inconsistent with solid waste reduction efforts, as it does not provide an economic incentive to minimize the number of cans a household uses. The firm of Hilton, Farnkopf and Hobson has been engaged to develop alternative rate structures which provide incentives to solid waste minimization through recycling and other source reduction efforts. These alternative rate structures will, to varying degrees, invert the present rate structure by apportioning a higher charge to the additional residential cans beyond the basic one-can service, and to the larger commercial container sizes. The rate structure REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 WF PM INITIATING DEPT.lDIV. ~ SUBJECT RECEIVE INITIAL REPORT ON REFUSE COLLECTION RATE STRUCTURE ALTERNATIVES POSITION PAPER PAGE 2 2 OF ~Ifril 11, 1990 alternatives will include options for the assessment of the net expense of recycling to particular customer categories and residential trimmings pickup being charged for separately as an optional service. Mr. Robert Hilton of Hilton, Farnkopf and Hobson will present the initial report on alternative refuse collection rate structures at the April 19, 1990 Board Meeting. At that Board Meeting, District staff requests direction and comments from the Board on the rate structure concept, or concepts, which would be consistent with the general state-wide solid waste reduction goals. The selected concept, or concepts, will then be developed further by application to the present rate schedules, and Board approval of the methodology for rate restructuring requested in May. Upon completion of the District's customary rate-setting process and the determination of the revenue increase which may be required effective July 1, 1990, the new collection rates will be recasted using the approved restructuring methodology. RECOMMENDATION: Receive the initial report on refuse collection rate structure alternatives and provide direction and comments to District staff. SSS/Position Paper #l/Rate.Rep 13028-9/85 . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 5 POSITION PAPER BOARD MEETING OF April 19, 1990 NO. VII. PERSONNEL 1 SUBJECT DATE April 12, 1990 TYPE OF ACTION APPROVE PERSONNEL BUDGET REOUESTS FOR FISCAL YEAR 1990-91 APPROVE BUDGET SUBMITTED BY INITIATING DEPT /DIV Cathryn Freitas, Personnel Officer Administrative/Personnel ISSUE: Staff has analyzed its personnel needs for Fiscal Year 1990-91 and submitted its requests for Board approval at the April 19, 1990 Board Meeting. Board approval of the O&M Budget is scheduled for June 8,1990. The O&M Budget will include any personnel changes approved by the Board. BACKGROUND: Each department has reviewed its staffing requirements for Fiscal Year 1990-91. The Personnel Budget includes memoranda from each department (Attachments I, II, III, IV, V & VI) with detailed explanations on the effect of these recommended staffing changes. The attached summary sheet (Attachment I) high 1 i ghts each department's staffi ng requests and summarizes their effect on the number of total authorized positions in the District. As shown in the summary, the total number of authorized positions in the District would increase by six (6) over last year; the eleven (11) requested positions are parti ally offset by five (5) positions recommended for deletion. Also, staff is requesting an additional student Co-op position over last year bringing our total Co-op position to ten (10). As will be discussed with the Board at this meeting, the District has a need to continue with its efforts to improve its hiring of women and minorities in non-traditional occupations. Based on the success of the previous Affi rmati ve Action Trainee program and a large number of anticipated openings for Maintenance Crew Members, staff is requesti ng authorization to i niti ate another Affi rmati ve Action Training Program in the Collection System Operations Department. The Collection System Operations Department (CSOD) has identified a need for nine Ma i ntenance Crew Members over the next two budget years, 1990-91 and 1991-92. Recognizing the District's desire to increase the number of women and minorities within the District, the CSOD Manager is requesting to fill the entry level Maintenance Crew Member positions as Affirmative Action Trainees. Modeled after the previously successful Affirmative Action Trainee Program, this effort woul d commence with fourteen trainees bei ng assi gned to four months in the Adm i ni strative Department. Al though the trai nees woul d spend much of thei r ti me assisting crews in the Preventative Maintenance, Construction, and Inspection Services Sections, the Administrative Department would be responsible for scheduling training, safety orientations, District field tours, supervising evaluations and handling overall selection of the final trainees. Upon successful completion of the REVIEWED AND RECOMMENDED FOR BOARD ACTION INI~PT./DIV. 1302A-9/85 SUBJECT POSITION PAPER APPROVER PERSONNEL BUDGET REQUESTS FOR FISCAL YEAR 1990-91 PAGE DATE 2 OF 5 April 12, 1990 four-month orientation period, nine of the fourteen trainees would be transferred to the CSOD. The remaining five would be terminated. The nine Maintenance Crew Member Trainees would receive on-the-job training for a one-year period at a sal ary of $8.50/hour for si x months and $9.50/hour for the following six months. Five days of paid sick leave would be granted during the twelve months and five days paid vacation leave would be granted during the second six-month period. Kaiser Health Insurance would also be provided as in the past program. Upon successful completion of the one-year training program, the trainees would be promoted to regular full-time employment status as Maintenance Crew Members with full benefits. The need for nine Maintenance Crew Member Trainee positions is explained on page seven of the C.S.O. Department request. A combination of current vacancies, disabilities, pending retirements, and promotions will create the requirement for at least nine Maintenance Crew Member employees over the next two years. Of the nine, only two are actual new positions that will be requested from the Board as part of the 1991-92 Fiscal Budget. Staff anticipates that by June 30, 1992, all nine trainees will fill vacant positions. The Affirmative Action Committee looks forward to improving the ratio of women and minorities in the field positions. Of course, the program would not be exclusive to women and minorities; and all qualified individuals would be considered. In addition to the increased number of positions, the sal aries and wages in the 1990-91 0 & M Departmental Budgets will increase from the previous year due to the following: o Cost-of-living salary adjustments resulting from the negotiated Memoranda of Understandi ng. o Merit and longevity increases scheduled in 1990-1991; o Filling authorized positions which were vacant in 1989-1990; and o Positions authorized in 1989-1990 which were budgeted for a partial year because of the time required to fill positions. On Tuesday, March 27, 1990, the Personnel Committee met to review the proposed budget. The following Board authorizations and modifications to the District staffing charts were discussed at that meeting. Copies of the Personnel Budget were distributed at the meeting of April 5, 1990, at which time a brief overview was 13028-9/85 SUBJECT POSITION PAPER APPROVE PERSONNEL BUDGET REQUESTS FOR FISCAL YEAR 1988-89 PAGE DATE 3 OF 5 April 12, 1990 presented by the staff. The foll owi ng changes have been added accordi ng to Board i np ut: o The class descriptions for Principal and Senior Buyer have been modified to include language requiring knowledge of computerized purchasing order systems. o The class description for Plant Maintenance Division Manager has been modified to require knowledge of modern integrated computer maintenance management systems. Also, the Board requested additional information on the salary survey for Principal Buyer. This information has been sent to the Board under separate cover. Administrative Department 1. Delete one Senior Buyer, G-68, $3144-$3805. Senior Buyer at G-65, $2925 - $3544, and descr i pt ion. Establ i sh new sal ary range for adopt new Senior Buyer class 2. Add one Principal Buyer, S-69, $3222-$3895 and reclassi fy Senior Buyer, Cheri Arstani, to the position of Principal Buyer and adopt Principal Buyer class description. 3. Add fourteen temporary Maintenance Crew Member Trainees for a four-month period, effective October 21, 1990, through February 20, 1991, at $7.50/hour.* 4. Del ete one Publ i c Information Coordi nator, S-68, $3156-$3822. Information and Graphics Coordinator, S-68, $3156-$3822. Add one Publ i c Plant Operations 5. Add one Chemist 1/11 (G-62, $2728-$3299). 6. Add one Maintenance Division Manager, M-26, $5418-$6586, and adopt Maintenance Division Manager class description. Engineering 7. Delete one Associate Engineer, S-77, $3913-$4740. 8. Delete one Assistant Engineer, G-72, $3461-$4189. 9. Add two Senior Engineers, $-82, $4414-$5335. 13028-9/85 SUBJECT POSITION PAPER APPROVE PERSONNEL BUDGET REOUESTS FOR FISCAL YEAR 1988-89 PAGE DATE 4 OF 5 April 12, 1990 Collection System Operations Department 10. Add one Maintenance Supervisor, S-71, $3391-$4104. 11. Add one Maintenance Crew Leader, G-65, $2925-$3544. 12. Add nine Maintenance Crew Member Trainees at $8.50/hour, effective 2/21/91.* 13. Add one Senior Engineering Assistant, G-72, $3461-$4189. 14. Add one Construction Inspector, G-67, $3070-$3716. * Trainee positions are not included in the total number of authorized regular positions. Co-op Program 13. Authorize the hiring of students to fill 10 positions in the Co-op Program. RECXM4ENDATION: Approve the Personnel Budget for Fiscal Year 1990 - 1991 herein identified by items one through fourteen. 13028-9/85 . -------._"..~----,_._--_. . -~._._---"._._-----"-----_..,----,-"-,_...,._~--~.._---_....~.~"_.-._...,.,.- -..-.-....-.---- fl III '-... ~ Gll:'- 0\ ....!Ill~ 0\ '-(1)(1)(.) '1 al o >-. ~~E.!"'E '" '" '- ~... ...Gl....'" Gl 0'-::11,... C c) lI.. III '" Ol .... C (I).CD ~.... ~ c fl L.U... L.... ... Gl>'- .......~!'-'" :l:l8:(I)Jlo C(l)~ Gl ! '- c) C .... ...... ~..,:l 0- ... 0\'-\11'" ~~ ~l!! '" '" Q) (I).CD G:i UJ ::a::: (I) ~ ~ (I) G:i ~ ..J UJ ~ (I) c::: ~ ~ 0\ co\ .~~ "'1 $~ (I)~ U'l rr1 '0 ]~ '-~ o I &.0\ 'E:~ <~ U'l rr1 --------- 0 --------- 0 ------....--- ui U'l .... U'l 0 U'l 0 .... a- E 0 CO U'l CO CO rr1 rr1 rr1 .... :;;j .... .... .... I I I '- I .... U'l N 0 .... .... N N ..... .... ...... a- N ...... (T) N rr1 '- rr1 .... .... .... ..c .... "- cO .,; . 0 . a- U'l CO ~ ~ ~ ~ I I I ,.... I <.!l <.!l (I) .... 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'" u +' t"O~+, ::J C -cP_C < '-+'+,Q) ';;; +' ..,.., Q) or- "'0 0 \11...."0 '" +' :z If-Q)""O+J ~ 00<(1) * o o o o . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 3 POSITION PAPER BOARD MEETING OF April 19, 1990 NO. XI. BUDGET AND FINANCE 2 SUBJECT REV IEW lHE FINANCIAL STAlUS OF THE SELF-INSURANCE FUND AND APPROVE OMITTING A FY 1990-91 CONTRIBUTION TO IT FROM THE O&M BUDGET DATE April 13, 1990 TYPE OF ACTION REV IEW FUND Slj3rtVEB~pbell Administrative Operations Manager INITIATING DEPT /DIV Administrative/Risk Management ISSUE: The Self-Insurance Fund is to be reviewed each year by the Board of Directors with the staff presenting re-funding recommendations for the up-coming fiscal year. BAa<GROUNO: The 1990-91 fiscal year is the final year of the five year plan established by the Board in 1986 to bull d a $6,000,000 Sel f-Insurance Fund (SIF) reserve by June 30, 1991. This was to be achieved by using SIF interest accrual combined with an incranent of re-funding from the O&M fund which represents a portion of what had been budgeted in the past for insurance prani um payments, cl aim settl anents, and litigation-related legal services. For the previous four years $500,000 or more has been the amount annually transferred, but this year the staff recommends that no additional funding be provided for 1990-91 because of the District's favorable loss experience and the lack of any major potential claims against the fund at this time. If this status continues through FY 1990-91, the $6,000,000 goal should be closely approached by the target date. Exhibit "A" presents the five-year history of the Sel f-Insurance Fund and shows that the reserve level is expected to reach $5,826,560 assuming stable interest rates, continued good loss experience, and without O&M re-funding for the 1990-91 year. The Insurance Prani um expense category shows a $15,000 increase in anti ci pati on of the 1990-91 renewal of the District's catastrophic property loss policy which will reflect a slightly higher replacement cost pranium rate and the addition of recent District capital improvanents to the maximum insured values. Now that the ori gi nal reserve target is in si ght, the staff recommends that beginning with fiscal year 1991-92 the reserve level be indexed to inflation and adjusted appropriately by annual increments supplied from the O&M budget as required. This would mean that if the present trend continues, the re-funding level Would ranain low. If a high loss year should occur, then the amount would be increased to re-establish the appropriate fund balance(either immediately or over a period of time). In this way the District would be able to utilize experience-based underwriting principals (or favorable interest rates on investments) the same way a commercial carrier would, and would gain an immediate cost savings from good loss control results, which is a main benefit fram a self-insured program. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. L (~ 1302A- PM SUBJECT REV IEW lliE FINANCIAL STAlUS OF lliE SELF-INSURANCE FUND AND APPROVE OMITTING A FY 1990-91 CONTRIBUTION TO IT FROM lHE O&M BUOOET POSITION PAPER PAGE 2 OF 3 DATE Apri 1 13, 1990 As mentioned, the loss experience has been very good with the committed open claim and expense reserves through March of 1990 totaling $185,987 compared to $300,000 in March of 1989. There are no major liability lawsuits (defined as requiring a reserve exceedi ng $100,000) currently pendi ng agai nst the SIF, and the proj ected expenses for 1989-90 of $168,500 are runni ng below the $242,000 which had been originally budgeted. Besides the low amount of litigation, there are no open landslide suits, (primarily because of the continuing dry weather), there has not been a maj or sewer overflow in over two years, and the Di stri ct escaped maj or earthquake damage in October 1989. The vehicle accidents which have occurred have been of the fender bender type with no major injuries. However, the District cannot become compl acent, and the safetyl1 oss control programs need to be strengthened further as the District embarks on the new major capital activities; but this does appear to be the time when the the O&M "premium" which is being paid to the SIF can be reduced to give the Di stri ct ratepayers the benefit of the Sel f- Insurance Program's success to date. As a point of information, the overall savings to the District resulting fran the deci si on to sel f-i nsure rather than conti nue with the comprehensive commerci al insurance programs previously used for risk financing, is estimated to be over $3 million for the first four years in premium costs. REOOMMENDATION: Review the up-dated five-year fi nanci al hi story/proj ecti on for the Sel f-Insurance Fund and approve anitti ng another increment for the fund in the 1990-1991 O&M Budget. 13026-9/85 Page 3 of 3 Exhibit "A" ~lRAI.. (X)NlRA COSTA SANITARY DISlRICT SELF-INSURANCE FUND FINANCIAL PROJECTION Five Years Endi ng June 30, 1991 Actual Actual Actual proj ected Budgeted 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 Revenues Self-Insurance Allocation frOOl O&M Fund $ 567,124 500,000 500,000 500,000 0 Ad Valorem Tax Revenue 1,000,000 0 0 0 0 Interest Income 196,109 293,840 381,994 432,200 420,000 Tota 1 Revenues $1,763,233 793 ,840 881,994 932,200 420,000 Expenses Cl aims Adj usti ng 9,922 5,574 3,316 6,500 8,000 Insurance Consulting 1,000 0 0 0 2,000 Loss Payments 32,280 129,872 35,049 22,000 44,000 Lega 1 Serv ices 116,296 48,783 49,989 60,000 60,000 Insurance Premi urns 5,812 53,428 75,381 78,000 93,000 Technical Services 9,273 7,408 824 2,000 5,000 Total Expenses $ 174,583 245,065 164,559 168,500 * 212,000 Revenue Over Expenses $1,588,650 548,775 717,435 763,700 208,000 Rese rv es Revenue Over Expenses $1,588,650 548,775 717 ,435 763,700 208,000 Reserves 2,000,000 3,588,650 4,137,425 4,854,860 5,618,560 Total Reserves $3,588,650 4,137,425 4,854,860 5,618,560 5,826,560 * The Expense Budget for 1989-90 is $242,000. RM/SIF/PP SIF Budgt 31