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HomeMy WebLinkAboutAGENDA BACKUP 01-17-85 <((sD Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER SUBJECT NO. IV. CONSENT CALENDAR 2 1 1 7 85 DATE JANUARY 9, 1985 VIA: ROGER J. DOLAN General Manager-Chief Engineer TYPE OF ACTION AUTHORIZATION FOR P.A. 85-2 (CONCORD AREA) AND P.A. 85-3 (ORINDA AREA) TO BE INCLUDED IN A FUTURE ANNEXATION TO THE SUBMITTED BY DENNIS HALL Parcel No. Area 85-2 Concord 85-3 Orinda ACCEPT FOR PROCESSING INITIATING DEPT./DIV. NGINEERING DEPARTMENT/CONSTRUCTION DIVISION Owner Address Parcel No. & Acrea e Remarks Lead A enc Contra Costa County Contra Costa County RECOMMENDATION: Authorize P.A. 85-2 and 85-3 to be included in a future formal annexation. INITIATING DEPT./DIV. DH Gerald Hertz, et al. 14350 Skyline Boulevard Oakland, CA 94619 159-090-037 (0.16 AC.) Site to be used as a small equipment (tractors, etc.) sales outlet. Plans and environmental assessment approved by County. David C. Boone, Inc. 37 La Enci na 1 Orinda, CA 94563 264-040-008 (ptn.) (0.64 AC.) 267-030-006 (6.17 AC.) Proposed Sub. 6522 with 14 single family lots. Plans approved by Orinda Area Planning Commission Environmental assessment by County. REVIEWED AND RECOMMENDED FOR SOARD ACTION / LION OIL CO LION OIL CO, liON OIL CO C. C. C, .... D. 1ltE~1101E1l1 80LLIoI~1l PL~1l1 if" '- ..<....:.......... .-.IIIf!1':. 1 E ,"<y~~" ..,.... "'!.'fr:: ~. ./i"> " ,~ ~ /ii!!'!!. .,,,~\~1. ~ .~...~, . Co ~~ j ;~~~-r ,n ~ /1 PROPOSED ANNEXATION RA. 8S-Z ,lfeE' CORP. , ACALANES UNIOIII niGh SCHOOL DISTRICT .1... AC E B MUD SAN PABLO RES. PRC o 'C ..OHNION . S. '7 At ---~-r~~I"w !iT II! N.I CIC f?A. ~5-3 Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. IV. CONSENT CALENDAR 3 1/17/85 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE JANUARY 4, 1985 SUBJECT TYPE OF ACTION EXECUTE CONSENT TO DEDICATION TO CONTRA COSTA COUNTY - SUBD. 6513 (JOB 3014 - PARCEL 5) SOUTH VIA LUCIA LANE EXECUTE CONSENT TO DEDICATION SUBMITTED BY JAY McCOY INITIATING DEPT./DIV. ENGINEERING DEPARTMENT/CONSTRUCTION DIVISION ISSUE: South Via Lucia Lane, a new road in proposed Subdivision 6513, runs along a portion of an existing District sewer easement. South Via Lucia Lane will be dedicated to the County for public use when the subdivision map is filed. BACKGROUND: The County requires a Consent to Dedication whenever a new road is dedicated to the County for public use if said road encroaches upon a existing easement. This is our standard consent document, the District retains prior rights. RECOMMENDATION: Approval, execute document and authorize its recording by the County. REVIEWED AND RECOMMENDED FOR BOARD ACTION HIEF ENG. /fJ! RAB RJD "- . / .....,J \0 \ \ ~ .... ....... CONSENT TO DEDICATION UClA LANE SOUTH V131A(30B 3014) SUB 65 <((sD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO- I 4 1/17/85 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 14, 1985 TyAtfJ12tb~IZrN ATTENDANCE SUBJECT AUTHORIZE ATTENDANCE OF A PLANNING DIVISION STAFF MEMBER AT AT THE AMSA CONFERENCE ON FINANCIAL MANAGEMENT SUBMITTE'CtjRTIS SWANSON, SENIOR ENGINEER IN'mG~ff\i<f'))EPARTMENT/PLANNING DIVISION ISSUE: Authorization is requested for a member of the Planning Division staff to attend the Association of Metropol itan Sewerage Agencies (AMSA) Winter Technical Conference on financial management. BACKGROUND: The topic of the upcoming AMSA Winter Technical Conference is innovations in financial management of wastewater collection and treatment facilities. The conference will be held from January 29 through February 1 in Palm Springs. The Planning Division is responsible for financial planning of the District capital proj ects. Activities i ncl ude devel opi ng long-range capital proj ect financial plans, establishing connection fees and other charges, applying for construction grants, and preparing financing plans for specific capital projects. Over the next 15 years, the District will be undertaking an extensive treatment plant and sewer construction program. Careful planning must be done to ensure the best use of the District sewer construction funds. Information from the AMSA conference about current financial options and future trends will be very helpful toward accomplishing adequate financial planning. The cost for one staff member to attend the conference is approximatel y $800. There are sufficient funds in the Planning Division budget to cover this cost; however, because the cost exceeds $500, Board approval to attend is required. RECOMMENDATION: Authorize one staff of the Planning Division to attend the AMSA Winter Technical Conference on financial management. REVIEWED AND RECOMMENDED FOR BOARD ACTION ---- J ftt K. ~ DEPT.!DIV. cws JMK RAB RJD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. V. ENGINEERING POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Januar 4, 1985 SUBJECT AUTHORIZE THE GENERAL MANAGER-Q-IIEF ENGINEER TO EXECUTE A CONTRACT AMENDMENT WITH JOHN CAROLLO ENGINEERS FOR CONSTRUCTION ADMINISTRATION AND START-UP ASSISTANCE FOR STAGE 5B S BJECT TO SWRCB APPROVAL TYPE OF ACTION SUBMITTED BY John Larson AUTHORIZE CONTRACT AMENDMENT INITIATING DEPT./DIV. Engineering Division ISSUE: Board approval is required for the General Manager-Chief Engineer to execute a contract amendment with John Carollo Engineers. SWRCB approval of the contract amendment is required under Clean Water Grant Regulations. BACKGROUND: Plans and specifications for the Stage 5B Project have been completed by John Carollo Engineers (JCE) under a contract previously authorized by the Board of Directors. At this time the project has been advertised and the bid opening is set for February 7, 1985. The estimated construction contract cost is $6 million. The construction activity will be administered by a project team composed of District staff, personnel from JCE, and a testing laboratory. District staff will be responsible for overall project management, grant administration, resident engineering, and day-to-day detailed inspection. Personnel from JCE will supplement District staff in the areas of construction contract administration, specialty inspection (e.g., electrical/instrumentation inspection), and office engineering (review of submittals and design clarifications). The assistance from JCE is required because of District staff commitments to other construction activities and JCE's expertise in the area of specialty inspection. JCE was selected because of their proven ability and their knowledge of the design. In addition, JCE will provide support in O&M manual preparation, operator classroom training, and performance certification to meet SWRCB grant conditions. To date, JCE has been paid $471,000 for their work on the design of Stage 5B. A contract amendment has been negoti ated on a cost pl us fixed fee basi s (to meet SWRCB grant conditions) with a cost ceil ing of $303,830. The construction work is scheduled to start in April 1985, and to be completed in December 1986. The performance certification will be completed in December 1987. In accordance with SWRCB grant regulations, prior to execution of any contract greater than $100,000 by the Grantee the negotiated contract must be submitted to the State Water Resources Control Board (SWRCB) to verify conformance with grant requirements and procedures. The cost of this work is eligible for reimbursement under the Cl ean Water Grant Program. Board approval to execute the contract subject to SWRCB approval is being requested at this time to facil itate future actions on this project. REVIEWED AND RECOMMENDED FOR BOARD ACTION ;yl/C- JMK J21Jf)RAB ENG. RJD The cost of this work, along with the remainder of the construction administration activities including District force account, will be covered by a future authorization of sewer construction funds that wl1l be requested at the time that the Stage 58 construction contract is awarded. This work is included in the Five-Year Capital Expenditure Plan. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute a contract amendment with John Carol 1 0 Engi neers for constructi on admi ni strati on and start-up assistance during construction of the Stage 58 Project with a cost cel1ing of $303,830. This authorization is subject to obtaining SWRCB approval prior to execution of the contract amendment. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. GEN. MGR.!CHIEF ENG. ~ Ala D Central Contra Costa Sanitary District BOARD OF DIRECTORS '/17/&> BUDGET & FINANCE 2 1 1 85 NO. VI. POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 8, 1985 SUBJECT RECEIVE AUDITORS' INTERNAL ACCOUNTING CONTROLS REPORT FOR l1-IE FISCAL YEAR ENDED JUNE 30, 1984 TYPE OF ACTION RECEIVE AUDITORS' REPORT SUBMITTED BY WALTER FUNASAKI, FINANCE OFFICER INITIATING OEPT./OIV. ADMINISTRATIVE/FINANCE ISSUE: As part of the examination of the District's financial statements, the District's auditors evaluated the system of internal accounting controls, and their report is submitted herewith. BACKGROUND: Hood and Strong, Certified Public Accountants, have completed their audit of the financial statements for the fiscal year ended June 30, 1984, and the audited financial statements were received by the Board of Directors. Attachment II is a report from Hood and Strong which contains recommendations to improve the District's system of internal accounting control, based on observations during their examination of the financial statements.' A summary of the auditors' recommendations and the District's actions in response to those recommendations are presented as Attachment I. RECOtlENDATION: Receive the auditors' report of internal accounti ng control s recommendations for the fiscal year ended June 30,1984 and the District's actions related to those recommendations. REVIEWED AND RECOMMENDED FOR BOARD ACTION WF ATTAQiMENT I CENTRAL CONTRA COSTA SANITARY DISTRICT SUt41ARY OF AUDITORS' RECOMMENDATIONS AND DISTRICT ACTION Auditors' Recommendation CASH RECEIPTS 1. Currency and checks on hand received by the permit section should be kept in a locked cash box at all times during working hours. 2. Currency and checks received by the permit section should be sent to the accounting depart- ment more frequently based on a predetermined dollar amount rather than the current weekly basi s. 3. All checks received by the permit section should be restrictively endorsed upon receipt. 4. Weekly deposits are currently made except for extraordinary amounts which are deposited immediately. Consideration should be given to making deposits at least twice a week for normal receipts that are received. 5. All checks received through the mail room should be sent directly to the accounting department. This would significantly reduce the amount of funds held by the permit section. GENERAL LEDGER Invoices related to June 30, 1984 fiscal year-end which were paid in the first week of July were recorded as cash payments as of June 30; payables should be District Action Currency and checks are now kept in a a locked cash box. Cash controls will be reinforced as a part of the new permit section operations computer system now in progress. More frequent transfer of over- the-counter receipts to Account- ing have been instituted based on a predetermined dollar amount. All checks are now restrictively endorsed upon receipt. Twice weekly deposits by Accounting have been instituted. All checks received through the mail are now sent directly to Accounti ng. An entry will be made at each fiscal year-end to record the payments during the first week of J ul y as payabl es as of June 30. Auditors' Recommendation recorded for these transactions at the June 30 cut-off rather than recording them as a cash transaction. PROPERTY PLANT AND EQUIPMENT GENERAl Since the District has a consid- erable investment in its furniture and equipment, an annual inventory should be held to ensure that all items are on hand. The District started developing an accounting policy manual in a prior year. The development of the manual is still currently underway. Your effort in com- pleting the accounting manual is worthwhile to the District. District Action An annual inventory of furniture and equipment will be performed. The inventory for 1984-85 will be taken using the Financial Manage- ment Information System (FMIS) fixed asset application. The accounting policy manual will be based on the new FMIS, and is in the 1984-85 Goals and Objectives for Accounti ng. --I.\TTACHMENT I I HOOD AND STRONG CERTIFIED PUBLIC ACCOUNTANTS fOf~+n#P~ ,k:t~Yf50a ~n/~:~ag/llll TELEPHONE (415) 781-0793 January 8, 1985 BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 Imhoff Place Martinez, CA 94553 Gentlemen: We have examined the financial statements of CENTRAL CONTRA COSTA SANITARY DISTRICT for the year ended June 30, 1984, and have issued our report thereon dated August 29, 1984. As part of our examination, 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 this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are exe- cuted 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 proce- dures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT Janaury 8, 1985 Page 2 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 believe to be a material weakness. This report is intended solely for the use of management and should not be used for any other purpose. During our audit we noted general situations in which a weakness in internal control was observed. The following is a summary of our observations and recommendations to improve controls and operational efficiency. CASH RECEIPTS Although the majority of the District's revenues are received independently through the county, significant amounts of funds are received through the mail and the permit section at the Dis- trict's office. The physical controls over these funds could be improved as follows: 1. Currency and checks on hand received by the permit section should be kept in a locked cash box at all times during working hours to limit access to these funds. 2. Currency and checks received by the permit section should be sent to the accounting department more fre- quently based on a predetermined dollar amount rather than the current weekly basis. 3. All checks received by the permit section should be restrictively endorsed upon receipt rather than when the bank deposits are prepared. 4. Weekly deposits are currently made except for extra- ordinary amounts which are deposited immediately. Consideration should be given to making deposits at least twice a week for normal receipts that are re- ceived. This procedure would decrease the accessi- bility to these funds and improve cash flow. 5. All checks received through the mail room should be sent directly to the accounting department. This would significantly reduce the amount of funds held by the permit section. Check copies could be sent to the per- mit section in order for them to update their records. BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT January 8, 1985 Page 3 GENERAL LEDGER The General Ledger was held open at June 30 which allowed some July cash payments to be recorded in the June activity. Although these amounts were not significant enough to require an audit entry at June 30, 1984, payables should be recorded for these transactions at the June 30th cut-off rather than recording them as a cash transaction. This should be considered in the future to prevent a misstatement of cash and accounts payable. PROPERTY, PLANT AND EQUIPMENT Since the District has a considerable investment in its fur- niture and equipment, an annual inventory should be held to ensure that all items are on hand. The District has developed a system to assist in taking a physical inventory. The process of tagging the furniture and equipment was completed. In addition, a fixed asset program has been acquired for the new computer system to assist in this area. GENERAL The District started developing an accounting policy manual in a prior year. The development of the manual is still currently underway. The accounting policy manual should be help- ful in areas such as training new staff, identifying problem areas such as duplication of efforts and determining proper and consistent accounting treatment. Your effort in completing the accounting manual is worthwhile to the District. * * * * * BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT January 8, 1985 Page 4 It was evident that your accounting personnel have been pro- viding management with timely and accurate information throughout the year. These personnel should be complimented on the excellent job that they have done. We appreciate the opportunity of communicating our comments and recommendations, and are available to further discuss them if you so desire. We acknowledge and thank Mr. Walter Funasaki and his staff, especially Mr. Steve Ellsberry, for their courtesy and coopera- tion extended to us during our audit involvement. Very truly yours, ~~~ MHM:kwd Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. VII. LEGAL/LITIGATIO 1 1 1 7 85 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 14, 1985 SUBJECT TYPE OF ACTION REQUEST TO INCREASE THE AUTHORIZED EXPENDITURE LEVEL FOR THE DISTRICT LEGAL SERV ICES INCREASE EXPENDITURE AUTHORIZATION LEVEL SUBMITTED BY Jack E. Cam bell, Admin. 0 erations M r. INITIATING DEPT./DIV. Administrative/Risk Mgmt. & Safety ISSUE: It is necessary to request an increase in the amount authorized for the District's claims and litigation expenditures for legal and consultant services. BACKGROUND: The District Board monitors the District's claims and litigation activity through a process of authorizing an expenditure level for the overall District case load. The cases are reviewed by the Board periodically as to their current status and the action plan which is being recommended for the immediate future. The plan is translated into a new estimated expenditure level, approval from the Board is requested, and the District staff uses this as the authorization to obtain the required legal and consultant services. The last request for an increased authorization level was made and approved on July 26, 1984, in the amount of $260,950; the one before that was on March 21, 1984, for $143,205. The expenditures through March 31, 1985, are estimated to require increasing the authorized expenditure level by $345,233 combined in Capital and 0 & M funds as detailed in the supplemental information. The staff is requesting to meet with the Board in closed session to provide further information concerning the following cases: Peterson-Simpson v CCCSD Superior Court, Contra Costa County #190885 CCCSD v National Union Fire Insurance Superior Court, Contra Costa County #255498 Contra Costa Water District v CCCSD Superior Court, Contra Costa County #258786 CCCSD v Contra Costa Water District Superior Court, Contra Costa County #253195 CCCSD v City of Concord (unfiled as of this date) REVIEWED AND RECOMMENDED FOR BOARD ACTION INIT ATtNe.:T./DIV. JEC RECOMMENDATIONS: 1. Meet with District staff representatives in closed session to review the five cases listed above. 2. Authorize an increase to the expenditure level for legal services for 0 & M and Project related cases in the amount of $345,233. REVIEWED AND RECOMMENDED FOR SOARD ACTION INITIATING OEPT./OIV. I GEN. MGR'/CHIEF ENG.