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Home My WebLink AboutAGENDA BACKUP 10-18-90 eo Centra. ~ontra Costa Sanitary ..~istrict BOARD OF DIRECTORS PAGE 1 OF! POSITION PAPER BOARD MEETING OF October 18, 1990 SUBJECT APPROVE CONTRACTOR'S REQUEST TO ADD A SUBCONTRACTOR TO PEFORM HAZARDOUS WORK ON THE M-2 PARALLEL FORCE MAIN PROJECT (DP 4610) AND AUTHORIZE THE GENERAL MANAGER TO APPROVE A CHANGE ORDER EXCEEDING $50,000 NO 3. ENGINEERING a. DATE October 1 7 1990 TYPE OF ACTION ADD SUBCONTRACTOR AND APPROVE CHANGE ORDER SUBMITTED BY INITIATING DEPT 'DIV Munawar Husain, Associate Engineer Engineering Department/Construction Division ISSUE: Contractor needs to proceed with contract work on the LT. Baker site and requires a subcontractor to perform work involving a hazardous material which was encountered during the course of construction. A change order in excess of $50,000 will be necessary to cover the additional costs of this work. Change orders in excess of $50,000 require board authorization. BACKGROUND: A section of the new M-2 sanitary force main passes through a 20-foot wide right-of-way at the LT. Baker site. During excavation for the parallel force main at this site, the contractor had to cease work due to high readings recorded on the monitoring equipment. Soil and water samples were taken by Woodward-Clyde Consultants and the results of laboratory tests and the recommended Health and Safety Guidelines were presented to the District on October 12, 1990. The general contractor, Fee Construction, Inc., has been given these Health and Safety Guidelines. Fee Construction has notified the District that a specialty subcontractor will be able to perform work at the LT. site. The subcontractor personnel will have training and the insurance protection to perform the work in the hazardous environment encountered. The M-2 Parallel Force Main Project has the potential to be impacted by the oncoming wet weather. Pipe laying and testing must be completed before the ground becomes too wet for the contractor operations. The cost of additional work will exceed $50,000. More details will be provided at the Board meeting. RECOMMENDATION: Approve contractor's request to add a subcontractor and authorize the General Manager to approve a change order exceeding $50,000. INITIA TING DEPT /DIV ~hJj 'r;.~L. RAB REVIEWED AND RECOMMENDED FOR BOARD ACTION l~jO?A 9'8~, MH RSK JSM "__"^._....._._._..._."___,___~..__.__._._'___. ._......M......_._____________ . Centra" ~ontra Costa Sanitar) Jistrict BOARD OF DIRECTORS PAGE 1 OF POSITION PAPER BOARD MEETING OF SUBJECT NO. 3. BIDS AND AWARDS a. DATE AUTHORIZE THE AWARD OF CONTRACT TO DALZELL CORPORATION FOR THE CONSTRUCTION OF FINAL EFFLUENT VALVE ACCESS, DISTRICT PROJECT NO. 10042 TYPE OF ACTION AUTHORIZE AWARD SUBMITTED BY Ba T. Than Assistant En ineer INITIATING DEPT./DIV. Plant 0 erations De artment ISSUE: On September 27, 1990, sealed bids for the Final Effluent Valve Access Project, District Project No.1 0042, were received and publicly opened. The Board of Directors must award the contract to the lowest responsible bidder or reject bids within 30 days of the opening date. BACKGROUND: The effluent flow from the treatment plant is controlled by the 72-inch final effluent valve located 25 feet below grade in a concrete vault structure on the east side of the Pump and Blower Building. Access to the electrically powered valve is required for periodic maintenance and repair. Access is available only by lifting a three-ton concrete slab off the structure. Personnel access and egress is via a portable ladder and requires a stand-by crew for the confined space entry. Restricted access reduces the quality and quantity of maintenance of this very important valve. This project was designed to provide ready access to the final effluent valve vault by installing a permanent ladder, working platform, lighting, and a supplemental ventilation system. The Final Effluent Valve Access Project is included in the 1990-91 Capital Improvement Budget beginning on page TP52. The total project cost was estimated to be $47,000. This project was listed as a Priority 1 project on the Stage 5A, Fix and Finish Settlement Schedule. Plans and specifications for this project were completed by Plant Operations Department (POD) staff and were publicly advertised on September 13, 1990, and September 19, 1990. A total of four bids were received and opened on September 27, 1990. A tabulation of the bids is shown in Attachment I. An evaluation of the bids, conducted by the POD and Purchasing Section, concluded that the lowest responsible bidder is Dalzell Corporation with a bid price of $31,940. The additional allocation of funds required to complete this project is estimated to be $35,000, as shown in Attachment II. The project cost is now estimated at $49,000. At the time of the 1988 - 1989 Capital Improvement Budget, the Board of Directors determined that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 18.2, because it involves a minor alteration to the treatment plant's final effluent valve vault and no expansion of use would occur beyond the previously existing condition. A notice of exemption was filed with the county clerk on August 24, 1988. INITIATING DEPT./DIV. BTT REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 BTT ~ SUBJECT AUTHORIZE THE AWARD OF CONTRACT TO DALZELL CORPORATION FOR THE CONSTRUCTION OF FINAL EFFLUENT VALVE ACCESS, DISTRICT PROJECT NO. 10042 POSITION PAPER PAGE 2 OF 4 DATE October 12, 1990 RECOMMENDATION: Authorize award of the construction contract in the amount of $31,940, for Final Effluent Valve Access, District Project No. 10042, to Dalzell Corporation, the lowest responsible bidder. --------- 13028-9/85 ~~ ~- +' ~ :~ r-< r-< ~ l' ~ ....10- ..0 % HI, c ..0 ~ ~IZ 0 r- .~ 1: ~"C ::Jc "Co .5.E > u ClJ- ::w:::0::: (I) (I) ClJ ...... U u l- e::( z: ClJ I..1J :E: > :J: r- U ftS e::( :> I- of.) l- e::( c ClJ :::J r- <<to- <<to- W -% r- Q ftS 0- C a.. 5 - u... CI) w ClJ Q "C 3! - a: > ~ 0 S- ::E a.. 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Page 4 of 4 ATTACHMENT II FINAL EFFLUENT VALVE ACCESS DISTRICT PROJECT NO. 10042 Post-Bid/Preconstruction Estimate PERCENT ITEM CONSTRUCTION ITEM DESCRIPTION AMOUNT TOTAL CONTRACT 1 Construction Contract $31,940 2 Estimated Construction 5,060 Contingencies at 1 6 percent 3 Subtotal 37,000 100 4 Estimated Construction Incidentals to Project Completion: . Inspection 1,000 . Contract Management 1,000 . Survey 500 . As-Built Drawings 500 5 Subtotal 3,000 8 6 Total Estimated Construction Cost 40,000 7 Pre-bid Expenditures 9,000 24 8 Estimated Total Project Costs 49,000 132 9 Funds Previously Allocated 14,000 10 Additional Allocation of Funds Required to Complete Project 35,000 . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF October 18, 1990 NO. 4. CONSENT CALENDAR f. SUBJECT DATE ADVISE THE BOARD OF DIRECTORS OF THE CLOSEOUT OF THE CRITICAL PROJECT - INCINERATOR OPTIMIZATION, DISTRICT PROJECT NO. 20086 TYPE OF ACTION INFORMATIONAL SUB/-1ITTED B)' Lynne I. Putnam Senior Engineer INITIA1JNG OEPT /QIV t:nglneenng Department Planning Division ISSUE: All work has been completed on the study and implementation of the Critical Project - Incinerator Optimization, District Project No. 20086. BACKGROUND: The Critical Project Program was initiated to implement near-term projects identified in the Treatment Plant Master Plan. The Critical Project - Incinerator Optimization is the last project in this program and was initiated to maximize the capacity and efficiency of the existing incineration system. The consulting firm Incinerator Rx performed a study of the existing furnaces and recommended changes in operating procedures and equipment. These changes have reduced fuel consumption and minimized visible stack emissions (yellow plume). The Incinerator Rx report also recommended further, long-term incinerator equipment changes to improve reliability and increase capacity. These changes will be implemented as conditions warrant. The total budget for this project was $80,000 of which $55,487 was expended leaving $24,513 to be returned to the Capital Budget. RECOMMENDATION: This matter is presented as information to the Board of Directors. No action is required. INITIATING DEPT./DIV. Ifjf> RAB REVIEWED AND RECOMMENDED FOR BOARD ACTION . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOA~~f6B~~ 9F8, 1990 NO. 4. CONSENT CALENDAR g. SUBJECT DATE October 1 2, 1 990 AUTHORIZE OUT-OF-STATE ATTENDANCE BY KEN F. LAVERTY, PURCHASING AND MATERIALS OFFICER, AT THE INTERNATIONAL PURCHASING ASSOCIATION LEADERS MEETING IN IRVING, TEXAS TYPE.OF ACTION AUTHORIZE ATTENDANCE SUBMITTED BY Paul Morsen Deputy General Manager INITIATING DEPT IDIV Administrative ISSUE: Board authorization is required for out-of-state travel or travel exceeding $500 not previously authorized in the 0 & M Budget. BACKGROUND: Representatives of 28 major purchasing associations are meeting on November 8, 1990 at the Dallas/Fort Worth Airport to form an international advisory committee to coordinate the activities of the combined 80,000 members. One major goal will be to provide for a coordinated effort in recommending legislative revisions to federal and state laws which would provide both simplification and standardization of purchasing procedures required of the public agencies. Another goal is to create one Professional Purchasing Certification which could be used by all the organizations to establish appropriate criteria for those hiring professional purchasing agents. Because of Ken Laverty's active role over the past several years with the California Association of Public Purchasing Officers (CAPPO) as well as other national associations, he has been requested by both CAPPO and the National Association of Purchasing Management (NAPM) to be a representative at this first international leaders meeting. This is and an opportunity for the District to have someone experienced in California public agency purchasing at this first international professional purchasing gathering. The total cost to attend this meeting will not exceed $750. CAPPO will be requested to share the travel expenses at its next Board meeting, but at this time its participation is unknown. Approval of this request may result in an overexpenditure of the Purchasing and Materials Control Section's Technical Training, Conferences, and Meetings account by $370. Recommendation: Authorize Ken Laverty, Purchasing and Materials Officer, to travel out of state to the International Purchasing Association Leaders meeting at the Dallas/Fort Worth Airport Marriott to be held on November 8, 1990. REVIEWED AND RECOMMENDED FOR BOARD ACTION R~ ENG. . Central Contra Costa Sanitary District BOARD OF DIRECTORS 5 PAGE 1 OF POSITION PAPER BOARD MEETING OF October 18, 1990 NO. 5. SOLID WASTE a. OCTOBER 15, 1990 S~VIDE VALLEY WASTE MANAGEMENT WITH CLARIFICA- TION OF SERVICE LEVEL AND RATES FOR TOWNHOUSE CUSTOMERS, AND RESOLUTION OF INCONSISTENT HILLY AREA SERVICE LEVEL AND RATES DATE TYPE OF ACTION PROVIDE CLARIFICA- TION OF SERVICE LEVELS AND RATES SUBMITTED BY Walter N. Funasaki, Finance Officer INITIATING DEPT/DIV Administrative/Finance and Accounting ISSUE: Valley Waste Management seeks clarification and resolution of the service levels and collection rates for two categories of customers: townhouses; and hilly area residential customers. BACKGROUND: The brochure titled "Putting a Lid on Rising Garbage Costs," which was recently distributed by the District to all customers of the franchised refuse collectors, has prompted inquiries by customers of Valley Waste Management regarding whether weekly trimmings and seasonal cleanup services are included for certain customer categories. In response to these inquiries, Valley Waste Management and District staff have reviewed the service levels and collection rates of townhouse customers and residential customers living in hilly areas which require service by a smaller collection vehicle. The issues which have been identified and are being brought before the Board are summarized below: . Does the service level for townhouse customers include three seasonal cleanups, in addition to refuse collection and recycling services? . Does the service level for hilly area customers include trimmings collection, in addition to refuse collection, three seasonal cleanups, and recycling services? . Should approximately 1,100 hilly area customers who have been billed at the lower residential rates have their rates adjusted to the higher hilly area rates during the current rate year? Results of Staff review of related Board Actions in establishina the trimminas and seasonal cleanuo services. In March 1967, the Board of Directors, when setting collection rates for residential, multi-family, and commercial customers for each of the five franchise zones in the District, added weekly collection of garden trimmings to the service level for residential customers of Pleasant Hill Bayshore Disposal. On March 14, 1970, the Board approved the addition of weekly collection of garden trimmings and three all-purpose seasonal clean-up collections for residential dwelling units served by Valley Disposal Service. A copy of the pertinent section of the March 14, 1970, Board minutes is provided as Attachment I. REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A-9/85 WNF PM e?J. .c._ ....c"'~ INITIATING DEPT/DIV. SUBJECT POSITION PAPER PROVIDE VALLEY WASTE MANAGEMENT WITH CLARIFICATION OF SERVICE LEVEL AND RATES FOR TOWNHOUSE CUSTOMERS, AND RESOLUTION OF INCONSISTENT HILLY AREA SERVICE LEVEL AND RATES PAGE DATE 2 OF 5 OCTOBER 15, 1990 In establishing collection rates for Valley Disposal Service effective January 1, 1984, the Board approved the request by the refuse collector for a higher collection rate for customers required to be serviced by a small truck because of inaccessibility by full-size trucks. In the rate application, the refuse collector described the service level for such hilly area customers as not including trimmings or seasonal cleanup service, ..." unless the customer hauls the material to the nearest road accessible to the full-size trucks." A copy of the pertinent section of the rate application is provided as Attachment II. Townhouse Service Levels and Rates Issues The current monthly single-can rate of $15.40 for townhouse customers of Valley Waste Management compares to $16.90 for regular residential customers. Townhouse customers are provided only with the basic collection and recycling services for the $15.40 rate. The refuse collector indicates that if the owners' association for the townhouses requests the trimmings and cleanup services, these services are added for the same $16.90 rate charged to regular residential customers. Townhouses which use commercial bins are billed and serviced as commercial accounts. As a result of a review of the establishment of the townhouse can rate and service level, District staff believes that the refuse collector unilaterally, and without Board approval, established a townhouse rate in 1984, which it contends was for refuse collection only. Because the differential of $1.50 per month between the single-can townhouse and regular residential rates is not sufficient to warrant exclusion of both trimmings and seasonal cleanup services, the seasonal cleanup service should be included in the townhouse service level. Furthermore, the refuse collector should be required to justify the townhouse rates at the next rate-setting process. Hillv Area Customer Service Levels and Rates Issues The hilly area monthly rate for a single-can is currently $20.50 compared to $16.90 for regular residential customers. While Valley Waste Management acknowledges that the service level for hilly area customers includes seasonal cleanup collections, it believes that weekly trimmings collection is not included. Based on the description of the hilly area service provided by the refuse collector in 1983 (Attachment II), when the Board adopted the higher hilly rates in all zones serviced by Valley Disposal Service, it is clear that both trimmings and seasonal cleanup collections were intended to be available to hilly area customers, provided the customer brings the material to the nearest street served by a full-size collection vehicle. 11028 9,8:) SUBJECT POSITION PAPER PROVIDE VALLEY WASTE MANAGEMENT WITH CLARIFICATION OF SERVICE LEVEL AND RATES FOR TOWNHOUSE CUSTOMERS, AND RESOLUTION OF INCONSISTENT HILLY AREA SERVICE LEVEL AND RATES PAGE DATE 3 OF 5 OCTOBER 15, 1990 Valley Waste Management has advised District staff that it has recently determined that as many as 1, 1 00 homes in the hilly areas of Lafayette and Danville are being charged the lower regular residential rates, although being provided hilly area service. The refuse collector wishes to notify these hilly area customers of its billing error, and, during the next month, adjust the rates to the higher hilly area rates. District staff believes that hilly area customers should be notified of the availability of the seasonal cleanup and trimmings collection, and the location for depositing such material, before the next seasonal cleanup date. Adjustments to the affected hilly area customers' rates should not be made until the next regular rate-setting process, as the latest rate increase effective August 1, 1990, was based upon the revenues projected using the current rates charged these customers. RECOMMENDATION: The following actions are recommended regarding townhouse and hilly area customers service levels and rates: . Establish that the service level for townhouse can-service will include three seasonal cleanups in addition to refuse collection and recycling services; the refuse collector will be required to justify the current townhouse rate in the next rate-setting process. . Affirm that, if requested by townhouse owners' associations, trimmings collections may be added to the service for which the townhouse customer will pay the same rate as the regular residential customer. . Affirm that hilly area customers receive trimmings and seasonal cleanup services, provided the customer delivers such material to the nearest street served by a full-size collection vehicle. . Establish that hilly area customers in Lafayette and Danville who have been incorrectly billed at regular residential rates should be notified immediately of the intention to adjust their rates effective with the next rate year beginning July 1, 1 991 . 13078 q.'f3r: ATTACHMENT I EXTRACT PRa ~INUTES OP THE KAY 14, 1'~ BOARD KEETING IV. HEARINGS EXTRA PICKUP AND CHARGES FOR GARDEN TRIMMINGS President Gibbs opened the Bearing and asked Mr. Horstkotte, General Manager-Chief Engineer, to explain District planning. Mr. Horstkotte stated that the problem is area-wide but the District had decided to start in a local area and expand. The District decided to ask Valley Disposal Service for a proposal for pickup and charges for garden cuttings. The proposal aet forth in their letter of March 30, 1970, follows: "We would like to suggest in addition to our regular weekly garbage collection service. that for each occupied residential dwellinR unit within any building containing not ~ore than two such units one collection of garden trimmings per week provided such trimmings are placed in container having a capacity of not ~ore than thirty gallons and is located at the street curb line by 5:00 a.~. on the collection day. "In addition to the garden trimming pick-up we auggest three all pur- pose clean-ups, Spring, Summer and Fall. We will send notices to custo~ers as to dates and rules to follow. Maxim\ID two (2) yards for each clean up. '~ue to the amount of customers in our zone we ask to be permitted to divide our zone into three areas and start one area at a time, completing the change within one year. "The esti~ated rate for this type aervice is $3.00 per ~onth." Board Members stated this would not be a voluntary aervice but a general compulsory service. The following in attendance at the ~eeting and representing certain homeowners associations discussed the proposal with Members of the Board: Tom Mann, President, Linda Vista Homeowners Association Pete Vnda, Sun Valley Improvement Association Al Martin, Mohawk Drive, Pleasant Bill E. W. Thompson, Glenwood BClIDes Association, 60 homes minim\ID 1/2 acre, Danville Charles H. Shepard, President, Creek Circle Homeowners Association (80 ~embers on Windsor Drive, Condit load, Buchan Drive, Old Tunnel Bead, etc., Lafayette) After discussion, President Gibbs asked the audience for any objection to starting the program as proposed. There was none. It was ~oved by Me~ber Mitchell, aeconded by Member Boneysteele, that the staff be directed to go ahead and set up the schedule according to the proposal of Valley Disposal Service for their area. Carried by the following vote: AYES: NOES: ARSEN'I: Members: Members: Members : Boneysteele, Rustigian, Mitchell, Allan and Gibbs None None Board Members stated that Hearings would be held at six-month intervals to determine how the new schedule is working. President Gibbs closed the Hearing. ATTACHMENT I I EXTRACT PROM VALLEY DZSPOSAL SBRVZCE RATE APPLZCATZON DATED OCTOBER 20, 1183 USED ZN SETTZNG COLLECTZON RATES BPPBCTZVB JANUARY 1, 1184 Explanation of Proposed Billy Area Rates Valley operates a route using a small truck in order to service customers who are not accessible to full size gar- bage trucks. This service does not include trimming or refuse cleanups unless the customer hauls the material to the nearest road accessible to the full size trucks. Although the service is provided in all three zones served by Valley, a regulated rate was established only in Zone 4. The rates charged in the three zones varied. The reasons for these differences is not known. Current rates for this service are: Zone 2 - $10.90J Zone 4 - $6.70 and Zone 5 - $9.35. There are approximately 500 customers in Zone 4 and approximately 200 customers total in Zones 2 and 5. The current proposal is to increase the $6.70 rate by 8.25% to $7.25 per month and to freeze the rates in the other zones. Approximately 200 customers will not receive an increase. Valley desires to achieve a unified rate for this unus- ual service. The actual cost of the service is likely to equal or exceed the highest rate now charged. At this time the cost of this service is not known and Valley believes it would be difficult to justify an increase of all rates to the Lafayette level. valley. will attempt to compile the cost data associated with this service for the next rate review in early 1985. . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF October 18, 1990 NO. 5. SOLID WASTE b. October 16, 1990 SUBJECT UPDATE ON WASTE MANAGEMENT SYSTEM PILOT PROGRAM DATE TYPE OF ACTION Solid Waste SUBMITTED BY Paul Morsen, Deputy General Manager INITIATING DEPT/DIV Administrative ISSUE: The Waste Management System Demonstration Project has encountered delays in securing permits necessary from Alameda County. BACKGROUND: Valley Waste Management has the equipment, including vehicles and garbage containers on board to implement the Waste Management "POD" System Pilot Project. It was intended to begin this project in October of 1990. However, Alameda County authorities have required Valley Waste Management to make application to use the "POD" system to bring waste into their county to Altamont Fill. Contra Costa County officials have requested Alameda County to levy fees including those for Acme Fill's administrative expenses and amortization of Acme Fill's capital expenses in addition to Contra Costa County planning fees. The letter from Contra Costa County Community Development's staff is attached for information. These fees are in addition to the Alameda County mitigation fee. This request from Contra Costa County has complicated the Alameda County permitting process and caused a delay in securing the necessary permits. Mr. Ron Proto, General Manager of Valley Waste Management, will be making an oral report to the Board regarding the implementation of the Waste Management System. RECOMMENDATION: Receive report from Valley Waste Management. REVIEWED AND RECOMMENDED FOR BOARD ACTION . Central Contra Costa Sanitary District BOARD OF DIRECTORS 1 PAGE 1 OF POSITION PAPER BOARD MEETING OF October 18, 1990 NO. 6. LEGAL/LITIGATION a. D~TE uctober 12, 1990 SUBJECT DENY CLAIM FOR DAMAGES FROM PACIFIC BELL TYPE OF ACTION DENY CLAIM SUBMITTED BY Jack E. Campbell INITIATING DEPT.lDIV Administrative/ ISSUE: The Security Division of Pacific Bell has filed a claim for $100,000 against the District. Claim denials require action by the Board of Directors. BACKGROUND: The Dalton Construction Company is performing a District construction contract to relocate sewer lines as required by CalTrans for the 1-680/SR-24 highway interchange modernization. On August 9, 1990, while trenching on Ygnacio Valley Road with a backhoe, Dalton Construction struck and damaged three underground communication cables and one air pressure supply pipe belonging to Pacific Bell. Dalton Construction made the required Underground Services Alert (USA) notification prior to the start of the trenching, but Pacific Bell failed to indicate the existence of these active lines when they did the street marking. The District is an additional insured on the contractor's insurance policy and has also been indemnified by the contractor. The staff recommends that Pacific Bell's claim be denied. RECOMMENDATION: Deny the $100,000 telephone line damage claim from Pacific Bell and refer it to staff for further action as needed. 1302A-9/ JEC PM KLA ~NG. ROGER J. DOLAN T~GLDIV. . Central Contra Costa Sanitary District BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETIN<ac!tober 18, 1990 RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1990 NO. 9. BUDGET AND FINANCE a. ~tober 8, 1990 TEc;~WT;e{jDITED INANCIAL TATEMENTS SUBJECT SUBMITTED BY Walter Funasaki, Finance Officer INITIATING DEPT.lDIV Administrative/Finance and Accounting ISSUE: The audited financial statements of the Central Contra Costa Sanitary District for the fiscal year ended June 30, 1990, and related management letter 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, 1990, and has submitted the audited financial statements and auditor's opinion thereon. In performing 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 advise District management of any major weaknesses noted in the system of internal accounting controls. As indicated in the management letter provided as Attachment I, the auditor's evaluation disclosed no condition that was considered to be a material weakness in the system of internal accounting controls. The audited financial statements and management letter were submitted in draft form to the Board's Budget and Finance Committee for review. State and local governments which receive federal financial assistance of $100,000 or more annually are subject to the requirements of the Single Audit Act of 1 984 for fiscal years beginning after December 31, 1984. As Clean Water Grant proceeds received by the District in the fiscal year ended June 30, 1990 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 and related management letter for the fiscal year ended June 30, 1990. REVIEWED AND RECOMMENDED FOR BOARD ACTION ~IA TING DEPT.lDIV. . ~..~~ 1302A-9/85 WF PM ADS/posPaper#3/AudFinSt.PP ATTAcm1ENT I Johnston, Gremaux &Rossi CERTIFIED PUBLIC ACCOUNTANTS September 6, 1990 BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT We have audited the financial statements of CENTRAL CONTRA COSTA SANITARY DISTRICT for the year ended June 30, 1990, and have issued our report thereon dated September 6, 1990. As part of our audit we made a study and evaluation of the District's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the District's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. The management of CENTRAL CONTRA COSTA SANITARY DISTRICT is responsible for establishing and maintaining a system of internal accounting control. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of such a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in condition or that the degree of compliance with procedures may deteriorate. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of CENTRAL CONTRA COSTA SANITARY DISTRICT taken as a whole. However, our study and evaluation disclosed no condition that we believed to be a material weakness. This report is intended solely for the use of management and should not be used for any other purpose. -1~ G-~ ~~ JOHNSTON, GREMAUX & ROSSI Certified Public Accountants 500 Lennon Lane, Walnut Creek, California 94598 . Tel (415) 944-1881 . Fax (415) 933-9167