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HomeMy WebLinkAboutAGENDA BACKUP 11-07-85 <8 Centr.. Contra Costa Sanitar District . BOARD OF DIRECTORS PAGE 1 OF 14 POSITION PAPER BOARD MEETING OF November 7, 1985 NO. v. HEARINGS 1 SUBJECT CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTION OF AN ORDINANCE COMPILING AND CODIFYING THE EXISTING ORDINANCES OF THE DISTRICT BY REFERENCE AS THE CENTRAL CONTRA COSTA SANITARY DISTRICT CODE AND CONSIDER ADOPTION OF RELATED RESOLUTIONS DATE October 29, 1985 TYPE OF ACTION ADOPT ORDINANCE AND RELATED RESOLUTIONS SUBMITTED BY Joyce E. McMillan Secretary of the District INITIATING DEPT./DIV. Administrative ISSUE: It is recommended that the Board of Directors adopt an ordinance adopting the compilation and codification of District ordinances by reference as the Central Contra Costa Sanitary District Code and adopt the related resolutions setting forth detail previously contained in the District Code. BACKGROUND: The draft compilation and codification of the existing ordinances of the Central Contra Costa Sanitary District as reviewed by the management team and former District Counsel was approved by the Board of Directors on June 6, 1985, and submitted to Book Publishing Company for printing. The completed District Code has been received, distributed to the Board for review, and is on file in the office of the Secretary of the District. As part of the recodification process, it was determined that various items such as rates and charges previously set forth in the District Code would be established by resolution of the Board of Directors to save administrative and codification expenses. It is necessary to reaffirm by resolution the current delinquent charges, public liability and property damage insurance amounts, cash deposits, annexation charges, fixture charges, and secondary watershed trunk sewer charges. Appropriate resolutions are attached. The District Code provides that the detail contained in the attached resolutions may be amended from time to time by resolution of the Board of Directors after a public hearing. No public hearing is necessary at this time since no amendment is requested, but merely a reaffirmation of items previously considered and approved by the Board of Directors after a public hearing. In some instances District staff determined in their review, that it would be appropriate to rewrite an entire section or chapter of the District Code, including the referenced resolution. It was concluded that this work could best be accom- plished accurately and efficiently after codification when comprehensive historical citations and cross references would be available. In his review of the draft District Code, former Counsel for the District John J. Carniato advised that certain sections should be reviewed in light of current statutory and decisional law. This project has been assigned to the new District Counsel James L. Hazard and funds for this purpose were approved in the 1985-1986 O&M Budget. Some of this work is currently underway and as each phase is completed, it will be presented to the Board for adoption and inclusion in the District Code. Since continued maintenance of the District Code is of primary importance, a pro- cedure is now in place to ensure that all ordinances adopted will be codified and inserted in the District rode on a Quarterlv basis. ~EVIEwE()AND I'IECOMMENCJ'ED FOR BOARD ACTION INITIATING DEPT.lDIV. (~ SUBJECT CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTION OF AN ORDINANCE COMPILING AND CODIFYING THE EXISTING ORDINANCES OF THE DISTRICT BY REFERENCE AS THE CENTRAL CONTRA COSTA SANITARY DISTRICT CODE AND CONSIDER ADOPTION OF RELATED RESOLUTIONS POSITION PAPER PAGE DATE 2 OF 14 October 29, 1985 Upon approval of the codification and adoption of the attached ordinance by the Board of Directors, the ordinance will be published once in the Contra Costa Times and will be effective upon expiration of the week of publication. RECOMMENDATION: A. Adopt an ordinance compiling and codifying the existing ordinances of the District and adopting the compilation and codification by reference as the Central Contra Costa Sanitary District Code; B. direct the Secretary of the District to publish said ordinance pursuant to Health and Safety Code Section 6490; and C. adopt the following resolutions: 1. Resolution Establishing Penalties for Delinquent Payments 2. Resolution Establishing Public Liability Insurance and Property Damage Insurance Amounts 3. Resolution Establishing Amounts of Cash Deposits 4. Resolution Establishing Annexation Charge 5. Resolution Approving Schedule of Fixture Charges 6. Resolution Adopting Watershed Trunk Sewer Charges --------- 13028-9/85 ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT COMPILING AND CODIFYING THE EXISTING ORDINANCES OF THE DISTRICT AND ADOPTING THE COMPILATION AND CODIFICATION BY REFERENCE AS THE CENTRAL CONTRA COSTA SANITARY DISTRICT CODE The Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: The compilation and codification of the existing ordinances of the Central Contra Costa Sanitary District that is on file in the office of the Secretary of the District under the title of IICentral Contra Costa Sanitary District Cadell is hereby adopted by reference, as the official code of the District in accordance with the provisions of the Health and Safety Code Section 6491.2 and Government Code Sections 50022.1 to 50022.8. This Ordinance shall be published once in the Contra Costa Times, a newspaper of general circulation, published and circulated within the Central Contra Costa Sanitary District, and shall be effective upon expiration of the week of publication. PASSED AND ADOPTED by the Board of Directors this 7th day of November, 1985, by the following vote: AYES: NOES: ABSENT: Members: Members: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: RESOLUTION NO. 85- A RESOLUTION ESTABLISHING PENALTIES FOR DELINQUENT PAYMENTS WHEREAS, Section 1.08.060 of the Code of the Central Contra Costa Sanitary District provides delinquent charges shall be in amounts established by resolution of the Board of Directors and may be amended from time to time by resolution of the Board of Directors. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District that delinquent charge shall be in the amount of ten percent of the amount due and shall attach thereto and, for each month that such charges remain delinquent, a further penalty charge of one-half of one percent of all amounts then due shall be added. PASSED AND ADOPTED this 7th day of November, 1985, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: RESOLUTION NO. 85- A RESOLUTION ESTABLISHING PUBLIC LIABILITY INSURANCE AND PROPERTY DAMAGE INSURANCE AMOUNTS WHEREAS, Section 5.08.010 of the Code of the Central Contra Costa Sanitary District provides that a contractor who applies for a permit shall maintain public liability and property damage insurance in amounts as established by resolution of the Board of Directors and as may be amended from time to time by resolution of the Board of Directors after a public hearing; and WHEREAS, as part of the District Code recodification process it is necessary to reaffirm by resolution the public liability and property damage insurance amounts previously contained in the Central Contra Costa Sanitary District Code. NOW, THEREFORE, BE IT RESOLVED, that a contractor who applies for a permit shall maintain public liability insurance in amounts of not less than one hundred thousand dollars for the death or injury of one person and three hundred thousand dollars for the death or injury of more than one person, and property damage insurance in the amount of not less than ten thousand dollars. PASSED AND ADOPTED this 7th day of November, 1985, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Approved as to Form: . f} / ~Ha~ rict Counsel Secretary of the District RESOLUTION NO. 85- A RESOLUTION ESTABLISHING AMOUNTS OF CASH DEPOSITS WHEREAS, Section 5.08.020 of the Code of the Central Contra Costa Sanitary District provides that the amounts of cash deposits shall be in amounts established by resolution of the Board of Directors and may be amended from time to time by resolution of the Board of Directors after a public hearing; and WHEREAS, as part of the District Code recodification process it is necessary to reaffirm by resolution the cash deposit amounts previously contained in the Central Contra Costa Sanitary District Code. NOW, THEREFORE, BE IT RESOLVED, that: A. An applicant for a permit for the construction, installation, alteration or repair of a public or private sewer shall be properly licensed for the work by the state and shall deposit with the District cash in the amount of one thousand dollars. B. An applicant for a permit for the repair or alteration of a house sewer only shall be properly licensed for the work by the state and shall deposit with the District cash in the amount of two hundred fifty dollars. C. An applicant for the construction, alteration, or repair of a house sewer on property owned for occupation by the applicant shall personally perform the work and shall deposit with the District cash in the amount of fifty dollars and, under these circumstances, the applicant need not be licensed for the work by the state. PASSED AND ADOPTED thi s 7th day of November, 1985, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: 2 RESOLUTION NO. 85- A RESOLUTION ESTABLISHING ANNEXATION CHARGE WHEREAS, Section 6.08.030 of the Code of the Central Contra Costa Sanitary District provides that annexation charges shall be established by resolution of the Board of Directors and may be amended from time to time by resolution of the Board of Directors after a public hearing; and WHEREAS, as part of the District Code recodification process it is necessary to reaffirm by resolution the current annexation charges previously contained in the Central Contra Costa Sanitary District Code. NOW, THEREFORE, BE IT RESOLVED, that the annexation charge for real property situated outside of the boundaries of the sanitary district is eight hundred dollars an acre until December 31, 1978, and shall be one thousand dollars an acre on and after January 1,1979. PASSED AND ADOPTED this 7th day of November, 1985, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: RESOLUTION NO. 85- A RESOLUTION APPROVING SCHEDULE OF FIXTURE CHARGES WHEREAS, Section 6.12.010 of the Code of the Central Contra Costa Sanitary District provides that fixture charges shall be established by resolution of the Board of Directors; and WHEREAS, as part of the District Code recodification process it is necessary to reaffirm by resolution the current fixture charges pre- viously contained in the Central Contra Costa Sanitary District Code. NOW, THEREFORE, BE IT RESOLVED, that the schedule of fixture charges as shown on Attachment "A" are hereby approved. PASSED AND ADOPTED this 7th day of November, 1985, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERS IGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Attachment "A" FIXTURE CHARGES A. Basic fixture rate schedule for ordinary plumbing fixtures connected to the sewer system. The charges for connection of the fixtures set forth in this section are as follows: $ 22.50 22.50 22.50 67.50 112.50 112.50 0.225 per square foot of pool surface B. Special commercial and public fixture charges. The charges for the special commercial and public use fixtures set forth in this section are as follows, when connection is permitted: Toil et Floor drain Lavatory Bath or shower Laundry outlet Sink and auxiliary appliances Swimming pool backwash Garbage grinder and disposal Dental chair, drinking fountain Automatic washing machine (under 20 lb. capacity) Floor drain Urinal Types of special fixtures not listed $150 + $150 per horsepower 15 375 75 75 Special study C. Rate schedule for multiple uses. When a fixture listed in the basic fixture schedule set forth in Section A above is used by more than one residential or commercial user, the fixture charge is the amount reached by multiplying the charge for each fixture by the number of separate users or units able to use the fixture by the fixture multiple set forth in Section D below. D. Rate schedule for residential uses, general commercial and miscellaneous uses and multistoried buildings. The fixture charge for any use is the minimum charge set forth in the following schedule of the amount reached by multiplying the charge for each fixture listed in Section A above by the fixture multiple set forth in this section, whichever is the greater. Where the fixture multiple is designated a "special study," the extent of use and its effect on the District system is not readily ascertainable and the District shall conduct a study to determine the fixture multiple. The minimum total fixture charges and fixture multiples are as follows: Type of Use Minimum Charge Per Unit Fixture Mu It i p 1 e Residential Living units per gross acre 0-5 6-10 11-20 21-30 31-50 over 51 $375.00 1.0 337.50 1.2 300.00 1.5 262.50 1.8 225.00 2.0 Use multistoried building fixture multiples -_.__.>,._-,~._,-._--"-_.-,-'-'~"-,_,~,-~-~,,--- I Multistoried buildings (over two stories) The fixture charge shall be at the rate of forty dollars per fixture unit equivalent and shall be based on the fixture unit equivalents set forth in Chapter 4 of the Uniform Plumbing Code published by the International Association of Plumbing and Mechanical Officials, 1976 Edition, as partially listed and modified below: Kind of Fixture Bathtub Floor drain Laundry outlet Shower, single stall Sinks and/or dishwasher (Residential) *Garbage disposal (residential) Wash basin (lavatory) single Water closet (tiolet) tank type *Mobile home park trap (use fixtures) Minimum Trap Size Hinch 2 inch Hinch 2 inch Hinch Hinch Hinch 3 inch 4 inch Units 2 2 2 2 2 2 1 4 mi n. 9 *For fixtures not listed above or in Chapter 4 of the Uniform Plumbing Code, the water supply pipe size, as listed below, or two fixture unit equivalents for each gallon per minute of flow discharged shall be used. Pipe Size Units Type of Use General Commercial and Miscellaneous Auditorium, bank, bakery, barber or beauty shop, church, cleaning plant, delicatessen, department store, drug store, dog kennel, fire house, grocery, hall, meat market, medical or office building Types of uses not listed hereon Cocktail lounge, bar, club, gas station, garage, restaurant, fountain, drive-in, funeral parlor Convalescent hospital, rest home, hospital 3/8 inch 1/2 inch 3/4 inch 1 inch Minimum Charge Per Unit $375.00 375.00 750.00 1 50.00 2 4 6 10 Fixture Multiple 3.0 3.0 5.0 per bed Type of Use Minimum Charge Fixture Per Unit Multiple Creamery, food processor $750.00 Speci a 1 Study Factory, industry 375.00 Special Study Multiuse buil di ng, each use 375.00 By Use Schoo 1 165.00 Per Classroom RESOLUTION NO. 85- A RESOLUTION ADOPTING WATERSHED TRUNK SEWER CHARGES WHEREAS, Section 9.12.190 of the Code of the Central Contra Costa Sanitary District provides that a list of secondary watershed trunk sewer plans and charges shall be adopted by resolution of the Board of Directors; and WHEREAS, as part of the District Code recodification process it is necessary to reaffirm by resolution the current watershed trunk sewer charges previously contained in the Central Contra Costa Sanitary District Code. NOW, THEREFORE, BE IT RESOLVED, that the schedule of secondary watershed trunk sewer charges as shown on Attachment IIAII are hereby approved. PASSED AND ADOPTED this 7th day of November, 1985, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California ~ Approved as to Fonn: ~/ ~ J es L. zar , istrict ounsel Attachment "A" WATERSHED TRUNK SEWER CHARGES Approved Per Unit Per W.S. No. Watershed Location of Use Acre 2 Sleepy Hollow $ 520 $ 520 3 N.W. Orinda 520 520 8 S.E. Orinda 500 500 10 Moraga Valley 300 500 11 South Lafayette 300 500 13 Rossmoor-Tice Valley 300 500 15 Re1 iez Valley 300 500 22 Happy Valley 300 500 23 S.W. Pleasant Hill and N.W. Walnut Creek 300 800 24 N.W. Pleasant Hill and Pacheco 300 500 27 Ygnaci 0 Valley 300 500 29N Walnut Heights 300 600 29S S.E. Walnut Creek 300 600 33 San Ramon Valley and Amador Valley 500 1,000 34N N. Stone Valley 300 600 34S S. Stone Valley (Job 746) 300 600 35N E. Danville 300 600 35S Sycamore Valley 1,050 2,000 M-43 Martinez-Mt. View 300 600 C-44 Concord-Clyde 800 2,500 (33) Amador Valley (in addition to WS 33) 753 Rebate . Centr~ Contra Costa Sanitat District .. BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF SUBJECT NO. VI. CONSENT CALENDAR 10 DATE QUITQAIM SEWER EASEMENT, JOO 3178, SUBDIVISION 4915, ROONDHILL UNIT NO.8, PlAt.{) MEA TYPE OF ACTION APPROVE QUITQAIM OF SEWER EASEMENT SUBMITTED BY Dennis Hall, Associate Engineer INITIATING DEPT./DIV. Engineering Dept./Construction Div. ISSUE: Mr. Raleigh L. Shaklee, new owner of Lot 138 of Subdivision 4915, has requested that the District quitclaim a portion of the public sewer easement which lies within his property. BACKGROOND: The sewer in the subj ect easement was abandoned in 1983 and a repl acement sewer was constructed closer to the property 1 i ne to enl arge the building pad area. An easement was granted to the District at that time; however, the ownership changed before the easement could be recorded. Mr. Shaklee has granted a new easement for the relocated sewer main. The subject easement is no longer needed. RECOMMENDATION: Approve Quitclaim Deed to Raleigh L. Shaklee, Job 3178, 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 uJ;( 1302A.9/85 D H JSMc RAB INITIATING DEPT./DIV. 9ft(] -5 - -t..... ' --- . ~~J_"" ....'1.. -rlJSR1W I I ,~ 0-, ~c:> ~~ ~ ~r8k)' -:0 ;8"'J~. c:;:>~ ~. ~M"""'\."\ J37 ~M7'4r.rI.J;I" ..../ ~I It 2'8' ;(~l'tS. .SE. ltJ N (}VlTa"IN&"tJ (It?NI (7.~ OS) ~-II.II SUBD. 49J5 237 M J7 ~~c ~4~ I J60 J3B QUITCLAIM EASEMENT JOB 3178 ALAMO AREA . Centri. Contra Costa Sanitar ~ District BOARD OF DIRECTORS POSITION PAPER I BOARD MEETING OF November 7, 1985 SUBJECT AUTHORIZATION FOR P.A. 85-23 (ALAMO), P.A. 85-24 (DANVILLE), P.A. 85-25 (PLEASANT HILL), AND P.A. 85-26 (DANVILLE) TO BE INCLUDED IN A FUTURE FORMAL ANNEXATION TO THE DISTRICT. SUBMITTED BY Dennis Hall, Associate Engineer Parcel No. Area 85-23 Alamo ( 77El ) 85-24 Danville (78B6) 85-25 Pleasant Hi 11 (47A5) 85-26 Danville (100B3) Owner Address Parcel No. & Acreage R. W. Peterson, Trust 129 Wilshire Court Danville, CA 94526 187-330-003 (4.38 Ac.) 187-330-004 (ptn.) (0.75 Ac Donald Hansen 866 El Pintado Danville, CA 94526 197-250-006 (2.35 Ac.) Gary W. Whitney, etux 8 Bristol Court Pl easant Hill, CA 94523 152-070-013 (0.45 Ac.) Shapell Industries of Northern California 100 N. Milpitas Blvd. Milpitas, CA 95035 202-100-016 (9.22 Ac.) I PAGE 1 OF 5 NO. VI. CONSENT CALENDAR 11 DATE October 28, 1985 TYPE OF ACTION ACCEPT FOR PROCESSING INITIATING DEPT.lDIV. Engineering Dept./Construction Division Remarks Lead Agency Proposal consists of four Contra Costa building sites with one County large parcel remaining which will be split in the future. A IINegative Declarationll has been prepared by Contra Costa County. Parcel is one legal buildin CCCSD site. Owner plans to construct one single family residence. District to prepare IINotice of Exemption.1I Vacant parcel, owner to CCCSD build one single family residence. District to prepare IINotice of Exemption. II Parcel is a portion of City of proposed Subdivision 6416 Danville which the District Board approved for annexation on August 1, 1985 (P.A.85-16~ City of Danville has approved the E.I.R. RECOMMENDATION: Authorize P.A. 85-23, 85-24, 85-25, and 85-26 to be included in a Ifuture formal annexation. INITIATING DEPT.lDIV. 13021'.9/65 IQIi DH REVIEWED AND RECOMMENDED FOR BOARD ACTION f2J7/J 'MV(6 fl y . JMc RAB "" \ 1j,)1;/ TGRT"EF ENG. - V r/'~L&{d-- I ROGERJ.DOLAN _lNUT CR~e~ .lONES C~.TlII ~A.D CO. PROPOSED ANNEXATION eA. ~"2~ ... 'v/'..-.-"""'~'~~/ " ~"'.': "':'2 " \ t. I CAMEr-.SOr-. 37 588 AC .ltOJtERTIES CO. ce At.' PROPOSED ANNEXATION I'!A. 8*- M l,.. :';~...l:~c. U.1IAC -----"lfl-;-I.~ ' ~ ~ ~'-~~~ B ri--=111 f-6tl)22 .-JI~ ~ r' 5'3 II 5~ 7\ 72 \ / 2'3 81 ~ 12'icUJ'I"J i"7,16, ql( ~ 82 _ ,- l - ,,'" ~ ~r[~'~~T~'1C I ;< --I l,~ 0' 'f<Z--t, ........ I.J 85' .....'119"" ,,,,,...tlt, ,..60'.... ~~' \ ~~\'5 1,17"lHOER ~~ , ~_\'5~~~ ~/...HIf) , ; ~ I I CITV O-;r- I PLE.--ASAN; IILL I/'L~ DR /. . I I RA.2ETO 6531 A.C PROPOSED ANNEXATION ~ A. IS"~' ~ ,"~R tlAIlDEItIS $- . " + RA. 85-/~ APPROVE/:) RVf ANNEXArlON 8-/-as OAf/'1'/'/'t. ,- ,'1 II I, II II I, I, I, " " " (( " " 5 B PROPOSED ANNEXATION AA.. 85-26 :fff] ~ . Centr" Contra Costa Sanital. District BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF SUBJECT 1985 NO. VI. CONSENT CALENDAR 12 ACCEPT TIiE OONTRACT FOR OONSTRUCTION OF PROJ ECT 20000, BAASCREEN INSTJlLLATION AND AUTIiORIZE TIiE FIL ING OF TIiE NOTICE OF COMPLETION DATE October 21, 1985 TYPE OF ACTION ACCEPT OONTRACT WORK SUBMITTED BY Munawar Husain, Associate Engineer INITIATING DEPT.lDIV. Engineering Dept./Construction Div. ISSUE: Work has been compl eted on the Barscreen Install ati on proj ect and the contract is now ready for acceptance. BACKGROOND: The contract work i ncl uded removal of two exi sti ng barscreens fran the Inlet Building and the installation of two District furnished Catenary barscreens. Also included was installation of screenings handling equipment, piping, and electrical work. Dalzell Corporation was issued a Notice to Proceed on August 12, 1985. On October 17, 1985 the work was completed by the Contractor. It is necessary to accept the contract work at this time. RECOMMENDATION: Accept the contract for construction of Project 20000, Barscreen Installation, and authorize the filing of the Notice of Canpletion. REVIEWED AND RECOMMENDED FOR BOARD ACTION JMc RAB INITIA T1NG DEPT.lDIV. 1302.4.9/85 r; MH ~;Y/ . Centr, Contra Costa Sanital District BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF November 7, 1985 NO. VI. CONSENT CALENDAR 13 CLOSE OUT THE CHLORINE/SULFUR DIOXIDE SYSTEM IMPROVEMENT PROJECT AND RETURN $12,790 TO THE SEWER CONSTRUCTION FUND <DISTRICT PROJ ECT 3660) DATE October 25, 1985 TYPE OF ACTION INFORMATION SUBJECT SUBMITTED BY Munawar Husain, Associate Engineer INITIATING DEPT./DIV. Engineering Dept./Construction Div. ISSUE: All work has been completed on the Chlorine-Sulfur Dioxide Project and the project can now be closed out. BACKGROUND: This project consisted of the construction of improvements to enhance the operation and safety features of the Treatment Plant's chlorine system and the installation of a new sulfur dioxide storage tank and operations building. The contractor, Monterey Mechanical, commenced work in October, 1983. Substantial compl eti on occurred on November 5, 1984, which was 82 cal endar days after the contract time for completion. Delays and time extensions were negotiated resulting in no liquidated damages being assessed. The project was accepted by the Board on January 3, 1985. There were 26 change orders issued on the project which resulted in a decrease in the costs of the construction contract. Construction management costs exceeded budgeted amounts because of the delays in completing the project. The net effect of the changes in cost was a reduced total project cost. The original total project budget was $829,795. The total project cost was $817,005 which is $12,790 under the original budget. Staff is proceeding to close out the project which will result in $12,790 being returned to the Sewer Construction Fund. RECOMMENDATION: This item is presented to the Board for information. No action is necessary. REVIEWED AND RECOMMENDED FOR BOARD ACTION JSM RAB 130211.9/85 JII MH f)~ INITIATING DEPT./DIV. Central Contra Costa Sanitary District BOARD OF DIRECTORS No.VI. CONSENT CALENDAR 14 11 7 85 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE October 31, 1985 SUBJECT AUTHORIZE AN EXTENSION OF MEDICAL LEAVE OF ABSENCE FOR JAMES BOLDEN, UTILITY WORKER TYPE OF ACTION AUTHORIZE LEAVE SUBMITTED BY ar es a s Plant Operations Department Manager INITIATING DEPT./DIV. Plant Operations Department/Maintenance Issue: It is requested that James Bolden, Utility Worker, be granted an extension of his medical Leave of Absence. Background: James Bolden has been off work due to back problems since July, 1985. He was granted a three-month medical Leave of Absence on August 8, 1985. He has been unable to obtain a release from his doctor to come back to work and requests a three-month extension of his Leave of Absence. Recommendation: Authorize an extension of medical Leave of Absence for James Bolden, Utility Worker, up to three months maximum. REVIEWED AND RECOMMENDED FOR BOARD ACTION e" . Centr~ Contra Costa Sanitaa District ., BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETINN8~ember 7, 1985 NO. VII. ADMINISTRATIVE 1 SUBJECT DATE October 31, 1985 CONSIDER A REQUEST FOR EMERGENCY WITHDRAWAL OF FUNDS FROM THE DEFERRED COMPENSATION PLAN TYPEOtbll~ER EMERGENCY WITHDRAWAL . Walter N. Funasaki, Finance Officer INITIATING DEPT.lDIV. Administrative/Finance & Accounting SUBMITTED BY ISSUE: Authorization by the Board of Directors is required for emergency withdrawal of funds from the Deferred Compensation Plan. BACKGROUND: James Bolden, Utility Worker, has requested a $4,545 emergency withdrawal from the Deferred Compensation Plan based on extreme financial hardship caused by a medical leave of absence. The Deferred Compensation Plan Advisory Committee has reviewed the request and determined that it meets the requirements for emergency withdrawal. RECOtIENDATION: Approve James Bol den's request for an emergency withdrawal of $4,545 from the Deferred Compensation Plan, as recommended by the Deferred Compensation Plan Advisory Committee. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT.lDIV. ,go-~' 1302,A.9/85 WN F . Centr," Contra Costa Sanital District .. BOARD OF DIRECTORS PAGE 1 OF POSITION PAPER BOARD MEETING OF November 7, 1985 NO. VIII. ENGINEERING 1 DATE November 5, 1985 TYPE OF ACTION CONSIDER CONDEMNATION REQUEST SUBJECT CONSIDER THE REQUEST BY MR. DAVID DEUTSCHER FOR THE CONDEMNATION OF A PUBLIC SEWER EASEMENT IN THE PLEASANT HILL AREA (JOB 4048) SUBMITTED BY INITIATING DEPT./DIV. Jay McCoy, Construction Division Manager Engineering Dept./Construction Div. ISSUE: Mr. David Deutscher, developer of Subdivision No. 6668 in Pleasant Hill, has requested the Board to consider the condemnation of an offsite public sewer easement. BACKGROUND: Mr. Deutscher is developing a 26 lot subdivision in Pleasant Hill at the northeast corner of Taylor Boulevard and Grayson Road. The nearest existing sanitary sewer system is within Linda Lane at the northern boundary of the proposed subdivision. The proposed development is too low to gravity sewer to this existing system. The filling of the development area has been investigated but the city of Pleasant Hill will not allow the site to be filled. The three alternatives available to provide sewer service to Subdivision 6668 are outlined below, along with comparative advantages and disadvantages: AL TERNATIVE ADV ANTJlGES DISADVANTJlGES 1. Installation of approximately 250 feet of gravity sewer to the east across a creek and through an easement on private property to Strand Avenue. o Moderate first cost. o Requires condemnation (condemnation costs are uncertain). o Disruption to fewer properties during construc- tion. o Future maintenance costs for easement sewer and creek crossing. o Added responsibility for maintenance of creek. o Risk of failure of creek crossi ng. o Existing downstream sewer is in poor condition. REVIEWED AND RECOMMENDED FOR BOARD ACT/ON tiff> RAB .--------r- SUBJECT CONSIDER THE REQUEST BY MR. DAVID DEUTSCHER FOR THE CONDEMNATION OF A PUBLIC SEWER EASEMENT IN THE PLEASANT HILL AREA (JOB 4048) 2. Installation of a sewage pumping 0 Low first cost. station for the subdivision. o No disruption to surrounding properti es. 3. Installation of approximately 800 feet of parallel 8-inch sewer in Linda Lane at a lower el evati on. o Normal operation and maintenance costs. o Eliminates one existing section of sewer in sewer easement. POSITION PAPER PAGE DATE 2 OF 5 November 5, 1985 o High future operation and maintenance cost. o Risk of sewage over- flows during power or equipment failures. o Highest first cost. o Highest disruption to surrounding properties. o Requires a 24-foot deep sewer which could be expensive to repair in future. The alternatives are shown on the attached map. Cost estimates for the first cost and present worth of additional operation and maintenance (O&M) costs of the three alternatives follow: o Alternative No.1: Staff estimates very approximately $60,000 first cost, including condemnation. Present worth of 50 years of additional O&M costs is approximately $111,000. o Alternative No.2: Staff estimates very approximately $45,000 first cost. Present worth of 50 years of additional O&M costs is approximately $137,000. Staff estimates very approximately cost. Deutscher estimates very $150,000 to $200,000. $84,000 first approximately o Alternative No.3: No additional O&M costs. Mr. Deutscher has reportedly attempted to obtain a sewer easement through a parcel on Strand Avenue owned by Mr. and Mrs. Stokes (Alternative No. 1). The parties have apparently been unable to agree on price and terms. --------. 13028-9/85 SUBJECT POSITION PAPER CONSIDER THE REQUEST BY MR. DAVID DEUTSCHER FOR THE CONDEMNATION OF A PUBLIC SEWER EASEMENT IN THE PLEASANT HILL AREA (JOB 4048) PAGE DATE 3 OF 5 November 5, 1985 Mr. Deutscher has approached District staff with a request to condemn the easement required for Alternative No. 1. District staff has advised Mr. Deutscher that past Board policy has been not to pursue private condemnations except in the case of compelling public need. Since there are other viable alternatives, Mr. Deutscher was advised that his request does not seem to fit past Board policy. Mr. Duetscher has disagreed with the staff's position on this matter and feels that Alternative No. 1 is superior to Alternative No.3. In addition, Mr. Deutscher has requested that the District write a letter of support for a private condemnation to the city of Pleasant Hill should the District decide to decline to proceed individually on a condemnation on Mr. Deutscher's behalf. Staff has made a technical eval uation of the three al ternatives to serve the Deutscher development. It is recommended that Alternative No. 2 be e1 iminated because of the cost of future operations and maintenance and because of the risk of future sewage spills due to equipment fail ure. Alternative Nos. 1 and 3 are judged to be roughly equivalent from a technical perspective. The initial cost of Alternative No.1 is less than Alternative No.3, but Alternative No.1 has a risk of creek bank failure in the future and has the disadvantage that the downstream sewer is in poor repair and will likely need to be replaced sooner than would otherwise be required because of the extra load imposed by the Deutscher development. In the absence of a clearly superior technical alternative to serve the Deutscher development, staff defers to the Board for policy guidance in this matter. Previous Boards have typically dec1 ined to condemn sewer easements when other feasible alternatives (other than pumping) have been available. It is suggested that the Board consider the following factors in rendering its decision in this case: o The relative benefits to the public represented by Alternative No. 1 versus Alternative No.3. o The hardship, if any, that would be incurred by the Stokes family by the condemnation process which may be followed if Alternative No.1 is chosen. o The precedent that would be set in the future by the Board action in th i smatter. o Legal considerations relative to the condemnation process. RECOMMENDATION: Consider the facts in this case and provide policy guidance to the staff in this matter. --------- 13026-9/85 0,-------.------------__.__.0_.__.._0.._.0..__..-. I SLATER -( 77/ -< r fTl 1 ; 1\t I II , , I' , I , I , , , , , , , I' 76$1 , , I -- --- , ':-_.- I' I 64 o o CD CD en ..... .. - 5~ 39 " ,9 158 - -J ~/~ _ .~5 36 ALTERNATIVE lib. 2 ~ ~ PUMP 5TA. :I!r' I " , J I' .... , ,I I SU8 6668 ..~: I~~I \ .J:" , .1 I . ALTEICNAT/Ve 1IfJ. I :it!: I " ...." " " I, I, " 'I I, " " :, ~I .' " t: OIl"t ...~ ........ ........ ........ ......, 19 20 II l\j ~ S ... ... GRAY SON 3 ~ -, \..-...--.- ~ 18/1 PLEASANT 181 187 18~ 2 HILL 10 ... 19;' PARK 185 ~ /99 189 Ill" 4 ...,. -- ; 10 _._--~-_._._--_._- DAVID DEUTSCHER REAL ESTATE COMMERCIAL AND INDUSTRIAL REAL ESTATE/LAND DEVELOPMENT October 17, 1985 ~~c~n~~[Q) OCT 1 7 1985 cccso SECRETARY OF rHE DIST~ICT Ms. Joyce E. McMillan Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Re: Request for Attendance at Board of Directors' Meeting on October 17, 1985 Dear Joyce: I am in receipt of Jay McCoy's 1 etter dated October 16, 1985 stating that we could lower the Hne in Linda Lane for 700-800 feet. t~e find this proposal to be unacceptable due to the cost of this line relocation. We would like to meet before the Board to request condemnation of the Stokes' easement. Please inform me as to the date when I may appear. DD:mm 370 CIVIC DRIVE . PLEASANT HILL. CALIFORNIA e4523 . (4151 878-8US8 ...... -..--t-.---..",.-..--.--.... . Centr~ Contra Costa Sanitar District . BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF SUBJECT NO. IX. TREATMENT PLANT 1 AUTHORIZATION OF $10,750 IN SEWER CONSTRUCTION FUNDS FOR THE PURa-fASE OF A NEW VERSATEC PRINTER DATE No TYPE OF ACTION AUTHORIZE FUNDS SUBMITTED BY Kenneth Moon Com uter S stems Technician INITIATING DEPT./DIV. Plant Operations Department/ Com uter Section ISSUE: The Plant Operations Department's graphics printer must be replaced. BACKGROUND: The Pl ant Operati ons Department's computer system utilizes two graphics printers for printing midnight and daily laboratory plots, plant operati ng data, and trend plots. Speci al software was written for these pri nters by Versatec and incorporated into the Modcomp controllers during computer system design. This makes our system compatible only with Versatec printers. The original matrix printers are fifteen years old and no longer supported by Versatec. The worst of the two pri nters was repl aced 1 ast year. The remai ni ng printer has now become of limited use due to software modification to accomodate the printer purchased last year. A replacement for the second unit was not included in the equipment budget for this year since the modifications to the existing software which limits its use were not anticipated. RECOMMENDATION: Authorize $10,750 from Sewer Construction funds to purchase a new Versatec printer. REVIEWED AND RECOMMENDED FOR BOARD ACTION 1302A.9/85 KM GW WEB N Vv ffi . Centr___ Contra Costa Sanitar.. District BOARD OF DIRECTORS PAGE 1 OF 4 POSITION PAPER BOARD MEETING OF November 7, 1985 NO. x. BUDGET AND FINANCE 1 SUBJECT DATE October 30, 1985 AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF DOCUMENTATION IN SUPPORT OF THE PROPOSITION 4 APPROPRIATIONS LIMIT TYPE OF ACTION AUTHORIZE PUBLIC NOTICE SUBMITTED BY INITIATING DEPT.lDIV. Walter N. Funasaki, Finance Officer Administrative/Finance and Accounting ISSIE: The Central Contra Costa Sanitary Di strict is requi red to establ ish its appropriations limit in accordance with Article XIII B of the California Constitution. BACKGROUND: General ReQui rements: Proposition 4 was approved on November 6, 1979, and was incorporated in the Cal ifornia Constitution as Article XIII B. Article XIII B, as implemented by Senate Bill 1352, 1 imits appropriations of state and local governments to the appropriations of the 1978-1979 base year adjusted in each subsequent year for changes in the consumer price index or California per capita personal income, whichever is lower, and population. SB 1352 requires government agencies to establ ish their appropriations 1 imit by resolution each year at a regularly scheduled meeting or a noticed special meeting beginning with the 1980-1981 fiscal year. Notice to the public of the availabil ity of documentation in support of the appropriation 1 imit was open to challenge within 60 days of the effective date of the resolution; for 1981-1982, and each fiscal year thereafter, the period in which a challenge can be commenced is 45 days of the effective date of the resolution. Key Assumptions: The following key assumptions have been used in interpreting the provisions of Article XIII B: o The District accounts for its activities in three separate funds: Running Expense Fund (General Fund); Sewer Constructi on Fund (Capital Fund); Debt Service Fund. The Running Expense Fund is considered to be an Enterprise Fund and is not subject to limitation under Proposition 4. Enterprise Funds are generally used to account for operations that are financed and operated in a manner similar to private business enterprises where it is intended that costs of providing goods or services to the public on a continuing basis be financed or recovered primarily through user charges. o Article XIII B defines "proceeds of taxes" as including, but not restricted to, all tax revenues, income from investment of tax proceeds, and the proceeds of regul atory 1 icenses, user charges and fees to the extent that REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. PM #. ~~ 130211.9/85 WN F --------_..-._._-_._-----,_._~---------_._,---_._.__..-..._...,._--~.~._._._--_.__.._- SUBJECT AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF DOCUMENTATION IN SUPPORT OF THE PROPOSITION 4 APPROPRIATIONS LIMIT POSITION PAPER PAGE 2 OF 4 DATE October 30, 1985 that such proceeds exceed the reasonable cost of providing the regulation, product or service. "Proceeds of taxes" also include state subventions, other than those for mandated programs for which the state reimburses the local agency. SB 1352 further defined state subventions to include only money received by a local agency from the state, the use of which is unrestricted by the statute providing the subvention. Grant funds received from the state for capital projects are restricted to specific uses and are, therefore, not "proceeds of taxes." o Fund balances carried over into fiscal year 1980-1981 are generally subject to limitation unless they were appropriated into a reserve account prior to July 1, 1980; however, as the Sewer Construction Fund is a single purpose fund, the fund bal ance at June 30, 1981, can be construed as havi ng been appropriated into reserves and, therefore, not subject to limitation. Computation of Appropriations Limit: The District appropriations limits are computed on the following attachment: Attachment A - Appropriations Limit: 1979-1980, 1980-1981, 1981-1982, 1982-1983, 1983-1984, 1984-1985, and 1985-1986. RECOtIENDATION: Authorize placement of a Public Notice advising that documentation used in the determination of the appropriation limit shall be available fifteen days prior to the Board Meeting to be held on December 5, 1985, at which the appropriations limit for the Sewer Construction Fund for the fiscal year 1985-1986 will be adopted. --------- 13028-9/85 CENTRAL CONTRA COSTA SANITARY DISTRICT Attachment A Page 3 of 4 Sewer Construction Fund (Capital Fund) Appropriations Limit 1979-1980, 1980-1981, 1981-1982, 1982-1983, 1983-1984, 1984-1985, and 1985-1986 1978-1979 Appropriations Subject to Limitation 1979-1980 Appropriations Limit: CPI Change State Per Capita Personal Income Population Change Compound Effect: $4,697,644 x 1.1252 = 1980-1981 Appropriations Limit: CPI Change Per Capita Income Change Population Change Compound Effect: $5,285,789 x 1.1470 = 1981-1982 Appropriations Limit: Per Capita Income Change Population Change Compound Effect: $6,062,800 x 1.1127 = 1982-1983 Appropriations Limit: CPI Change Population Change Compound Effect: $6,746,078 x 1.0772 = 1.1017 1.1500 1. 0214 1.1017 x 1.0214 = 1.1252 $5,285,789 1.1468 1.1211 1.0231 1.1211 x 1.0231 = 1.1470 $6,062,800 1. 0912 1. 0197 1.0912 x 1.0197 = 1.1127 $6,746,078 1. 0679 1.0087 1.0679 x 1.0087 = 1.0772 $7,266,875 $4,697,644 1983-1984 Appropriations Limit: Per Capita Income Change Population Change Compound Effect: $7,266,875 x 1.0388 = 1984-1985 Appropriations Limit: CPI Change Population Change Compound Effect: $7,548,830 x 1.0612 = 1985-1986 Appropriations Limit: CPI Change Population Change Compound Effect: $8,010,818 x 1.0506 = 1.0235 1.0149 1.0235 x 1.0149 = 1.0388 $7,548,830 1. 0474 1.0132 1.0474 x 1.0132 = 1.0612 $8,010,818 1.0374 1. 0127 1.0374 x 1.0127 = 1.0506 $8,416,165 Page 4 of 4 . Centr~ Contra Costa Sanital District . BOARD OF DIRECTORS PAGE 1 OF 6 POSITION PAPER I BOARD MEETING OF November 7, 1985 NO. x. BUDGET AND FINANCE 2 SUBJECT DATE October 29, 1985 RECEIVE AUDIT REPORT AND RELATED INTERNAL ACCOUNTING CONTROLS REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1985 TYPE OF ACTION RECEIVE AUDIT REPORTS SUBMITTED BY INITIATING DEPT./DIV. Walter Funasaki, Finance Officer Administrative/Finance and Accounting ISSUE: The District's audited financial statements and related auditor's report on a review of the District's system of internal accounting controls are being submitted to the Board of Directors. BACKGROUND: Hood and Strong, Certified Public Accountants, have completed their audit of the District's financial statements for the fiscal year ended June 30, 1985, and prepared thei r auditors' opi nion thereon. The fi nanci al statements and accompanyi ng auditors' opinion were reviewed in draft form by the Board's Budget and Finance Committee and District management. The customary report by the auditors which contains recommendations to improve the system of internal accounting controls based on observations during the examination of the financial statements is provided as Attachment I. As required by the District's recently adopted Investment Policy, the auditors performed a more detailed review of the internal accounting controls for investment transactions, and have incorporated their recommendations in their report. A summary of the auditors' internal controls recommendations and the District's planned actions in addressing the recommendations are presented in Attachment II. REC<MENDATION: Receive the audited fi nanci al statements for the fiscal year ended June 30, 1985 and auditors' opinion thereon, and the rel ated auditors' report of internal accounting controls recommendations. REVIEWED AND RECOMMENDED FOR BOARD ACTION , A ~Di r M"i:;;!./ HIEF ENG. l ...-ALl-2 (f. If Ih 0 C-- ROGER J. DOLAN INITIATING DEPT./DIV. ,.~ b--~' 1302".9/85 WF PM Attachment I Hood and Strong certified public accountants Telephone (415) 781-0793 101 California Street. Suite 1500 . San Francisco, CA 94111 October 25, 1985 BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 Imhoff Place Martinez, CA 94553 Gentlemen: We have examined the financial statements of CBRTRAL CORTRA COSTA SABITARY DISTRICT for the year ended June 30, 1985, and have issued our report thereon dated September 3, 1985. 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 expres- sing an opinion on the District's financial statements. OUr study and evalua- tion was more limited than would be necessary to express an opinion on the sys- tem 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 ful- filling 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 abso- lute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with manage- ment's authorization and recorded properly to permit the preparation of finan- cial 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 conditions or that the degree of compliance with the 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 believe to be a material weakness. Associated Worldwide with Dearden Farrow International CENTRAL CONTRA COSTA SANITARY DISTRICT October 25, 1985 Page 2 This report is intended solely for the use of management and should not be used for any other purpose. Based upon our audi t work, we offer the following comments and recommenda- tions: PRIOR YEAR RECOMMENDATIONS All prior year recommendations have been implemented or are in process at this time. INVESTMENTS The Board of Directors ini tia ted an Inves tment POlicy as of Apri 1 1985. This document is a good guideline for maintaining liquidity, diversifica- tion, an adequate rate of return, and proper authorization of transactions. During our review of the internal control policies for investments, the following were noted: 1. The Finance Officer authorized two investment transactions exceeding the $4 million limit. There was no evidence of approval from the Deputy General Manager (over $4 million) or the General Manager - Chief Engin- eer (over $5 million). 2. The instruction form which is mailed to the County is currently not intended to be the source of the approval documentation. An internal form is retained with the documentation. Section IX of the Investment Policy describes control procedures, in- cluding the approval limits. Per our discussion with the Finance Offi- cer, these approvals are for internal purposes only. As far as the County is concerned, the Finance Officer is authorized to execute all investment transactions without regard to dollar limits. We suggest that this point be clarified in the Investment Policy, as it is not clear from reading the control section exactly what is intended. CENTRAL CONTRA COSTA SANITARY DISTRICT October 25, 1985 Page 3 ACCOUNTING POLICIES Collection of Receivables and Recovery of Assets: It has been the policy of the District to record receivables and some costs as assets at their full value until the District is certain that the account will not be collected or there is no future value. Examples include the LID54 receivable and the land fill study. Accounting practices require the use of estimates and under generally accepted accounting principles, these items should be adjusted based upon estimates of probable outcome. There- fore, we suggest that the receivables and items such as the land fill study be evaluated each year in terms of probable collection or value and adjust- ments made at that time, rather than when the ultimate outcome is deter- mined. Legal Cos ts Under generally accepted accounting principles, legal costs incurred which are directly related to the construction of a facility may be considered part of the cost of the asset. Costs relating to the Peterson-Simpson suit met this criteria. There are other aspects such as total cost and recovera- bility that need to be considered. The District is currently incurring and capitalizing legal costs which relate to the water reclamation contract dis- pute with the Contra Costa Water District. It is not clear that these legal costs meet the criteria to be capitalized. Since it appears that these costs could be significant in the future, we suggest that a policy for capi- talization be established and monitored going forward. It was evident again this year 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 recommenda- tions, and are available to further discuss them if you so desire. We acknowledge and thank Mr. Walter Funasaki and his staff, especially Mr. Steve Elsberry, for their courtesy and cooperation extended to us during the course of our work. Very truly yours, MHM:kwd AhJad~ .__..~._.~--_.._-_._-----_.__.__._-- Attachment II CENTRAL CONTRA COSTA SANITARY DISTRICT StN4ARY OF AUDITORS' REC<MEtI>ATIONS AND DISTRICT ACTIONS Auditors' Recommendation Inves1:lnents 1. Two investment transactions which exceeded the $4 million signature limit of the Finance Officer were not counter- signed by the Deputy General Manager (over $4 million) and the General Manager-Chief Engineer ($5 million). 2. The form letter containing the investment instructions to the County bears only the Finance Officer's signature block. The applicable approval signatures of the Finance Officer, Deputy General Manager, and General Manager-Chief Engineer for each investment transaction, based on their approval limits of $4 million, $5 million, and over $5 million, respectively, are affixed to a District document which supports the investment instructions. The District's Investment Policy document should be clarified to indj- cate whether applicable approval signatures are re- quired on the investment form letter to the County. District Action Approval limits will be re- vised to require the approval of the Deputy General Manager for amounts of $5 million or less; the General Manager-Chief Engineer's approval of all amounts exceeding $5 million will continue to be requ ired. The District's Investment Policy document will be revised to re- quire approval signature blocks of the Finance Officer, Deputy General Manager, and General Manager-Chief Engineer on the investment form letter to the County. Appropriate signatures will be obtained based on the revised approval limits. Accountin~ Policies--Gollection of Receivables and Recovery of Assets Receivable balances and capital asset balances, such as the landfill study, should be evaluated annually to determine probable collection or continued asset value and adjusted at that time, rather than when the ultimate outcome is determined. A review of collectibility of receivables and the appropriate- ness of capital asset balances is performed annually by the Finance Officer. Such review will be changed to a semiannual basis to produce timely adjustment of account balances which may be required. -..--.---..-"--------..-..--,--~,________......_._"_M.____._.__."~.__,._..,.__.,._.__.____..______~__..__ Auditors' Recommendation Account1na Po11c1es--leaal Costs legal costs related to the water reclamation contract dispute with the Contra Costa Water District are being capitalized. It is unclear whether such costs are directly related to the construction of a facility. and. therefore. capitalizable. As such costs could be signif- icant in the future. a deter- mination should be made regarding capitalizing future legal costs. Attachment II District Action A review of the capitalization of legal costs related to the water reclamation contract dis- pute will be performed by the Finance Officer. The results of the review will be reported to District management and the Board of Directors by December 19. 1985. with a recommended course of action. . ..... . ~.!,- . Centr... Contra Costa Sanita~,; District BOARD OF DIRECTORS I PAGE 1 OF 1 POSITION PAPER I BOAF~J~~~~b~Gr07, 1985 SUBJECT APPROVE SETTLEMENT PAYMENT FOR MARIA LLAMAS VS. CCCSD LAWSUIT - SUPERIOR COURT, CONTRA COSTA COUNTY CASE #251586 NO. XI. LEGAL/LITIGATION 1 DATE November 1, 1985 TYPE OF ACTION APPROVE SETTLEMENT PAYMENT SoUBMITT.ED ex .J aCK t.. liampbe 11 Administrative Operations Manager INKU'rrirrfi~'tjr~~rve Risk Management and Safety ISSUE: The Maria Llamas vs. CCCSD lawsuit has been settled and the District needs to reimburse the insurance carrier for the self-insured retention (SIR) portion. BACKGROUND: In closed session on December 20, 1984, the Board di rected staff to attempt a settlement of this lawsuit in coordination with the District's insurance carrier. A settlement for $140,000 was achieved prior to the start of the trial and the carrier has made payment to Ms. Llamas. The carrier, Prudenti al Reinsurance Company, now requests that it be reimbursed for the sel f-insured retention portion less the District-paid defense costs. The defense expenditures to date are $11,300 with a few more closeout charges expected. This leaves a maximum balance on the $50,000 SIR of $38,700. Because this is a major claim, the staff requests that it be paid from the O&M Contingency Fund. RECOMMENDATION: Approve payment of $38,700 maximum from the Operations and Maintenance Contingency Fund to the Prudential Reinsurance Company for the District's portion of the Maria Llamas vs. CCCSD lawsuit settlement. REVIEWED AND RECOMMENDED FOR BOARD ACT/ON II ( .A.0. (y;/rIEF ENG. - W /,/, ..., J~ / ROGER J. DOLAN '1i'VZffi,v 1302A.9IW JEC ~ PM ._-----------,---------_..~--_._--_.._-_._~_.- . Centr Contra Costa Sanita~ District ~ BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER I BOARD MEETING OF November 7, 1985 NO. XI. LEGAL/LITIGATION 2 SUBJECT DENY CLAIM FROM STATE FARM INSURANCE COMPANY CONCERNING PROPERTY AT 1581 HARLAN DRIVE, DANVILLE DATE October 30, 1985 TYPE OF ACTION DENY CLAIM SY3~TT~~ BCampbe 11 Administrative Operations Manager IN~lt,j1;!fW{~'tt.~~~ve/ Risk Management & Safety ISSUE: A cl aim for unknown damages has been received from State Farm Insurance Company alleging a July 5, 1985 incident at 1581 Harlan Drive, Danville, involving earth movement and excessive water. BACKGROUND: This is apparently a subrogation claim from the insurer of the above property. A preliminary review by District staff cannot identify any specific District activity at this location which might have resulted in property damage on that date. The attorney for State Farm has been contacted with a request to furnish additional information which would help the staff to determine what the CCCSD involvement might have been or what incident generated the claim. Although the attorney has promised to provide this and several follow-up requests have been made, no response has been made to-date. Therefore, the staff recommends that this claim be denied. RECOMMENDATION: Deny claim from State Farm Insurance Company for damages alleged to have occurred at 1581 Harlan Drive, Danville, Cal ifornia. Refer to Administrative Operations Manager for further action as necessary. REVIEWED AND RECOMMENDED FOR BOARD ACTION IN;JlyeEPT.lDIV. 1302A9(ay' J EC ~ PM \ ~ ~t2~IEF ENG. Iff,V v vv- / ROGER J. DOLAN -------_._----_._,---~._---,------._-_._-