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Home My WebLink AboutAGENDA BACKUP 08-04-88 . Central ~ontra Costa Sanitary _ istrict BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF Au ust 4, 1988 NO. IV. CONSENT CALENDAR 3 SUBJECT QUITClAIM SEWER EASEMENT TO KILPATRICK PARTNERS, A CALIFORNIA GENERAL PARTNERSHP, JOB 1162 (NEW JOB 4187), SAN RAMON AREA DATE July 26, 1988 TYPE OF ACTION APPROVE QUITCLAIM OF EASEMENT SUBMITTED BY Dennis Hall Associate Engineer INITIATING DEPT./DIV. Engineering Department/ Construction Division ISSUE: Kil patrick Partners, owners of property upon which the Courtyard Project is to be constructed by the Courtney Group, has requested the District to quitclaim the subject easement. BACKGROUND: In 1964 a publ ic sewer main was constructed within San Ramon Valley Boulevard. The alignment of San Ramon Valley Boulevard has since been changed and a portion of the roadway was vacated on October 21, 1985. A sewer easement was reserved from the roadway abandonment for the then exi sti ng sewer mai n. As a result 'of the real ignment of the road, new property 1 ines have been created. In order to make full use of these new properties, the publ ic sewer has been realigned by the developer. A replacement sewer easement has been created and the new sewer is in use. The sewer easement reserved in the roadway abandonment is no longer required for District use and can be quitclaimed. RECOMMENDATION: Approve Quitclaim Deed to Kilpatrick Partners, Job 1162, authorize the President of the District Board of Di rectors and the Secretary of the District to execute said Quitclaim Deed, and authorize the Quitclaim Deed to be recorded. REVIEWED AND RECOMMENDED FOR BOARD ACTION JSM RAB 1302A-9/85 ~Vr DH INITIATING DEPT./DIV. -- ~ ovl ,. c.~ ~O~ _____ . CJ>..~~\?~ ~\\ v.- \(>. ~ ~- '1., "- ~ " ^' /1%, '~~ ~)- -N- , 'N LEASE E)<'~~(-, PATRICK K.L ~~ '~\,,, ~r. ~ 0'& o QUITCLAIM EASEMENT JOB 1162 SAN RAt10N AREA J ~\ \11 \}z. (l (l ~y., 1-~ .....\ ~~ ~~.!t -1Jl-- 'l.~ ~\'G \. ~ -'Q ~ t, . Central ~ontra Costa Sanitary ..,istrict BOARD OF DIRECTORS PAGE 1 OF 1 POSITION PAPER BOARD MEETING OF August 4, 1988 NO. IV. CONSENT CALENDAR 4 SUBJECT ESTABLISH SEPTEMBER 1, 1988 AS A HEARING DATE TO CONSIDER THE FORFEITURE OF A PORTION OF ALL STAR ROOTER AND PLUMBING'S $1,000 CASH DEPOSIT AND ALL OF SILVA AND SILVA UNDERGROUND'S $1,000 CASH DEPOSIT DATE J ul Y 26, 1988 TYPE OF ACTION ESTABLISH HEARING DATE SUB~ITTED BY Jay S. McCoy Construction Division Manager INITI.ol.TING" DEPT.lQIV. tnglneerlng Department/ Construction Division ISSUE: All Star Rooter and Plumbing (All Star) and Silva and Silva Underground (Silva) have failed to compensate the District for the costs of repairing damage in violation of the District Code. BACKGROUND: All Star damaged an existing sewer main in San Juan Avenue, Wal nut Creek, in the process of doi ng other underground constructi on. The Coll ecti on System Operati ons Depa rtment repa i red the sewer and i nvoi ced the contractor for the cost of the repair in the amount of $225.22. The contractor did not pay the invoic€ and subsequent attempts to contact All Star including letters via certified mail have been unsuccessful. Silva installed a sewer main in Livorna Road and, without the knowledge of the District, damaged a part of the state's underground electrical system. The state contacted the District and requested repair of the damage. Attempts to contact Silva were unsuccessful. Silva's telephone service has been disconnected and its current address is unknown. It has been 1 earned that Sil va has fil ed for bankruptcy. The District subsequently hired an electrical contractor and repaired the damage at a cost of $1,814. Section 5.08.050 of the District Code provides for the forfeiture of a contractor's $1,000 cash deposit (or portion thereof) if the applicant violates any term of the permit. The General Manager-Chief Engineer has reviewed the background of this matter and, based on the facts presented to him, certifies herein that both All Star and Silva have violated their permits. The Board must establ ish a heari ng date for consi derati on of the forfeiture of contractor's deposits. All Star and Silva will be sent official notification of the hearing date and will have the opportunity to give testimony at said hearing. RECOMMENDATION: Establ ish a hearing date of September 1, 1988 to consider the forfeiture of $225.22 of All Star's $1,000 cash deposit and $1,000 of Silva's $1,000 cash deposit. Instruct the Secretary of the Di stri ct to give All Star and Silva written notice ten calendar days in advance of the date of the hearing where the Board will consider the declaring of a forfeiture of their contractor's cash deposit. REVIEWED AND RECOMMENDED FOR BOARD ACTION I/I1fJ RAB . Central ~ontra Costa Sanitary ..Jistrict BOARD OF DIRECTORS PAGE OF 1 POSITION PAPER BOARD MEETING OF August 4, 1988 NO. IV. CONSENT CALENDAR 5 SUBJECT DATE July 29, 1988 AUTHORIZATION FOR DAVID WILLIAMS TO ATTEND THE WATER POLLUTION CONTROL FEDERATION ANNUAL CONFERENCE IN DALLAS, TEXAS TYPE OF ACTION AUTHORIZE ATTENDANCE SUBMITTED BtY A B k Kober . a er Deputy Chief Engineer INITLATING DEPT./DIV. ~nglneerlng Department Engineering Division ISSUE: The Water Pollution Control Federation (WPCF) is holding its annual conference in October in Dallas. A paper co-authored by David Williams has been accepted for presentation at this conference. Mr. William's attendance at this meeting was not included in the 1988-89 O&M budget. Board authorization is required for his participation in the conference. BACKGROUND: A paper entitled "Large Diameter Concrete Pipe Rehabilitation," prepared by David Williams and Curt Swanson of the Engineering Division; Cheryl CresoI1, formerly with the Engineering Division; and John Burgh, Camp, Dresser & McKee Consulting Engineers has been accepted for presentation at the WPCF annual conference in Dallas on October 4, 1988. The paper describes the District's experience during the Outfall Rehabilitation Project. The Engineering Department requests that Mr. Williams be authorized to attend the conference to present the paper. Because of the acceptance of this paper after the adoption of the District Training budget, this conference was not included in the 1988-89 O&M budget. Mr. Williams' attendance at this conference, if approved, will cause the Engineering Division's Conference and Training budget to be exceeded. The total cost of the conference attendance is approximately $1,200; however, by making offsetting reductions in the budget, the exceedance can be limited to $800. RECOMMENDATION: Authorize David Williams to attend the WPCF conference in Dallas. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITI~T./DIV. 1302A-9/85 RAB . Central ~ontra Costa Sanitary ..Astrict BOARD OF DIRECTORS PAGE OF 6 POSITION PAPER BOARD MEETING OF August 4, 1988 NO. v. ENGINEERING 1 SUBJECT ADOPT A RESOLUTION OF NECESSITY, APPROVE A PROPERTY EXCHANGE AGREEMENT WITH CONTRA COSTA COUNTY, AND APPROVE ALLOCATION OF $274,900 FOR THE PURPOSE OF AMENDING AN EMINENT DOMAIN ACTION TO ACQUIRE PROPERTY RIGHTS FOR THE SAN RAMON VALLEY INTERCEPTOR, PROJECT 4224 DATE August 1, 1988 TYPE OF ACTION ADOPT RESOLUTION APPROVE ALLOCATION APPROVE AGREEMENT SUBMIITED EjY W curt1s . Swanson Principal Engineer INITIA.JING. DEPT./DIV ~ng1neer1ng Department Engineering Division ISSUE: A resolution of necessity must be adopted prior to amending an eminent domain action to acquire property rights for a public sewer. The Board of Directors must authorize allocations from program contingency accounts which exceed $25,000. BACKGROUND: The District began construction of approximately 7.5 miles of the San Ramon Valley Interceptor in June 1987. The interceptor is located in easements within the former Southern Pacific Railroad right-of-way. Permanent sewe~ and temporary construction easements were acquired from Contra Costa County under an agreement executed in December 1985. The County provided permanent and temporary construction easements for the entire project except for a 2,357-foot long section between Danville Boulevard at Rudgear Road and Woodland Drive (Parcel 32). This parcel was not owned by Southern Pacific at the time the agreement with Contra Costa County was signed. Ownership reverted to the heirs of the original owners (approximately 80) upon abandonment of rail operations by Southern Pacific. The County was unable to reach a purchase agreement with the property owners and advised the District to condemn the sewer easement to meet the project construction schedule. Al though the County is interested in acquiring the property, it was unable to initiate condemnation due to the lack of a CEQA approved project for the right-of-way. On May 28, 1987, the Board adopted a resolution of necessity and authorized the filing of a condemnation lawsuit to acquire a permanent 20-foot wide sewer easement and a one-year temporary construction easement across the entire 100-foot wide property. Since the filing of the condemnation lawsuit, the property owners have approached the District about purchasing the entire property instead of a 20-foot wide easement. District staff believes that purchase of the entire property is cost-effective and in the best interests of all parties. After a series of negotiations, the property owners, County staff, and District staff have agreed on a purchase price of $325,000 for fee title to the entire property. This price is reasonable compared to the appraisals performed by the County and the District. To acquire the entire Parcel 32 in fee, the condemnation lawsuit must be amended from acquiring easement rights to acquiring fee title to the property. The REVIEWED AND RECOMMENDED FOR BOARD ACTION INITI~]:fl)DIV. j)/tJ MJ 1302A-9/85 CWS DRW RAB KLA SUBJECT ADOPT A RESOLUTION OF NECESSITY, APPROVE A PROPERTY EXCHANGE AGREEMENT WITH CONTRA COSTA COUNTY, AND APPROVE ALLOCATION OF $274,900 FOR THE PURPOSE OF AMENDING AN EMINENT DOMAIN ACTION TO ACQUIRE PROPERTY RIGHTS FOR THE SAN RAMON VALLEY INTERCEPTOR, PROJECT 4224 POSITION PAPER PAGE 2 OF 6 DATE August 1, 1988 District conducted the required hearing to receive input from the property owners and other affected interests on June 2, 1988. After the hearing, the Board of Directors must adopt the attached Resolution of Necessity authorizing the acquisition of the entire property by eminent domain. Staff has negotiated a formal property exchange agreement for the subsequent transfer of the property to Contra Costa County. In exchange for the property, the County will grant a credit for future property rights (easements or fee title) on County property which may be required by the District. Such credits are indexed to reflect the changing value of real property. The District is currently planning projects which will be able to make use of these credits within the next ten years. The agreement also calls for the County to reimburse the District for half of the legal costs in acquiring fee title to Parcel 32. The County Board of Supervisors is tentatively scheduled to consider approval of the agreement on August 16, 1988. As part of the emminent domain action initiated last year, the District deposited $50,100 with the Superior Court. If the Board decides to amend the lawsuit, an additional $274,900 must be deposited with the Court. There are insufficient funds in the San Ramon Valley Interceptor Construction Contingency Account to cover this expense, and no funds were included for land purchases in the 1988-1989 Capi tal Improvement Budget. The required $274,900 may be allocated from the Collection System Program Contingency Account with Board approval. RECOMMENDATION: (1) Adopt the attached resolution of necessity authorizing amending the eminent domain action from acquiring easement rights to acquiring fee title to Parcel 32 for the San Ramon Valley Interceptor, Project 4224, conditioned on the approval by the Contra Costa County Board of Supervisors of the property exchange agreement. (2) Authorize the President of the Board of Directors to execute the property exchange agreement with Contra Costa County. (3) Approve allocation of $274,900 from the Collection System Program Contingency Account to District Project No. 4224. 13026-9/85 RESOLUTION NO. A RESOLUTION OF NECESSITY AUTHORIZING THE ACQUISITION OF REAL PROPERTY FOR SEWER LINE PURPOSES WHEREAS, Pursuant to Health and Safety Code Sections 6512 and 6514, and Part 3, Title 7, of the Code of Civil Procedure, the Central Costa Sanitary District is empowered to acquire real property for public use, to wit, for a sewer line and the protection and preservation of the safety and usefulness thereof. WHEREAS, the Central Contra Costa Sanitary District has identified the need to acquire the real property more particularly described in Exhibit "A" attached hereto for said purposes, said property being located within an unincorporated area of the County of Contra Costa. WHEREAS, on the 13th day of May, 1988, the Secretary of the District gave notice required by law of the hearing on this Resolution. WHEREAS, the Secretary of the District did not receive any written requests to appear and be heard at the hearing. WHEREAS, due consideration of all oral and documentary evidence has been taken. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District, by a vote of at least two-thirds of its members, does FIND AND RESOLVE as follows: 1. The public interest and necessity require the project for which said real property is to be acquired. 2. The proposed project is planned and located in the manner which will be most compatible with the greatest public good and the least private injury. 3. The said real property is necessary for the proposed project. 4. The offer of just compensation required by Section 7267.2 of the Government Code was made to the owner of record. BE IT FURTHER RESOLVED THAT: The Counsel for the Central Contra Costa Sanitary District, James L. Hazard, and Special Counse I , Gary R. Rinehart, a Professional Corporation, are hereby authorized and empowered: To acquire in the District's name the said real property by condemnation; To prepare and prosecute in the District's name such proceedings in the proper court as are necessary for such acquisition; and To deposit the probable amount of compensation, based on an appraisal, and to apply to said court for an order permitting the District to take immediate possession and use said real property for said public uses and purposes. PASSED AND ADOPTED this day of , 1988, by the District Board of the Central Contra Costa Sanitary District by the following vote: AYES: NOES: ABSENT: Members: Members: Members: President of the District Board of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to form: District Counsel _____~._______'_._,M.'_____.~__.__."">_____."_.___.._.________'"_.~~______,._._______~~_"__~_.__._ EXHIBIT "A" PROPERTY DESCRIPTION PARCEL 32 PROPERTY DESCRIPTION That real property situated in the County of Contra Costa, State of California, described as follows: The real property described in the deed from Laura M. Harlan and Mary H. Llewellyn to Southern Pacific Railroad Company, a California corporation, recorded June 10, 1891, in Book 60 of Deeds, page 139, described as follows: A strip or tract of land 100 feet wide lying equally on each side of the located line of the San Ramon Branch of the Southern Pacific Company's railroad where the same is located in said County of Contra Costa and commencing at a point on the center line of the said railroad where said center line intersects the easterly boundary line of land of the said party of the first part at or near Survey Station 603+90 of said center line, being the westerly line of county road leading to Walnut Creek and running thence southerly along said center line of said Southern Pacific Railroad following the curvature thereof, embracing a strip of land 50 feet wide on each side of said center line to the southerly boundary line of land of said party of the first part at or near Survey Station 626+97 of said center line, a distance of 2,357 feet, more or less. EXCEPTING THEREFROM: The interest conveyed to the State of California, by instrument recorded April 23, 1953, Book 2110, Official Records, page 170. --"----~,~~-~.-..~ "-....------~-----..--~....--" .-...., .-.- ..-.--. ".,___.w......~._.'....__"'...~~______.._.__.~________~___'_'''_"'__'_'___'_''~__''____''~~_'"^''''_''__'_''''_____~__'~'."'_m'__ . CentrL_ Contra Costa Sanltar) Olstrlct BOARD OF DIRECTORS PAGE 1 OF 2 POSITION PAPER BOARD MEETING OF August 4, 1988 NO. V. ENGINEERING 2 SUBJECT AUll-lORIZE ll-lE GENERAL MANAGER-CHIEF ENGINEER TO EXEOJTE AN AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR PRELIMINARY DESIGN WORK ON THE SLUDGE/ASH HANDLING PROJECT (DP 20071) DATE July 27, 1988 J~iJ~O~!ZI~N AGREEMENT S.UBMITTEQ. BY B k Lynne 1. un er Associate Engineer '~~~fWge~n'go'~epa rtment/ Planning Division ISSUE: Board of Di rectors' authorizati on is requi red for the General Manager-Chief Engineer to execute a professional services agreement in excess of $50,000. BACKGROUND: The District currently disposes of its waste stream (ash, sludge, and grit) at the Acme Fill landfill in Martinez. Acme Fill may have to close as early as January 1989, unless the Regional Water Qual ity Control Board grants Acme a permit to expand its site by 24 acres. Acme's closure wil 1 requi re the District to locate and contract with another disposal facility. Dewatered raw sludge, which is produced when both incinerators are out of operation, will not be accepted by any Bay Area landfill. Historically, the two i nci nerators have been simul taneousl y out of serv i ce for one to two weeks per year. Since on-site storage and drying of raw sludge is not practical due to odor concerns and the raw sludge is not acceptable at landfills due to high moi sture content and odors, a new faci 1 ity is needed immedi atel y to treat raw sludge to make it acceptable for landfilling. The Sl udge/ Ash Handl i ng Proj ect was i ni ti ated in December 1987. Th is proj ect is described in the Capital Improvement Budget beginning on page TP-18. A prel imi nary investi gati on has 1) verified that the Di stri ct' s waste stream is nonhazardous through state and federally approved pollutant testi ng methods, 2) identified nearby landfills which could accept the District's waste stream, and 3) identified regulatory restraints for disposal at nearby landfills. A pilot study to investigate a sludge stabilization process that reduces odors and moisture content of raw sludge has recently been completed. The preliminary test data indicates that lime stabilization can make our raw sludge acceptable to a number of landfills in the San Francisco Bay Region. Also, lime stabilization can be implemented by early to mid 1989. The next step is to prepare a prel imi nary desi gn whi ch will identify preferred equipment, develop prepurchase specifications, select a project location, develop a process and i nstrumentati on di agram, provi de eq ui pment 1 ayout, and prepare a prel iminary cost estimate. The prel iminary design is projected to be completed in November 1988 with final design and installation to follow as soon as possible to provide a reliable sludge disposal process. REVIEWED AND RECOMMENDED FOR BOARD ACTION SUBJECT POSITION PAPER AU1l-IORIZE 1HE GENERAL MANAGER-CHIEF ENGINEER TO EXEQJTE AN AGREEMENT WITH J()iN C4tROLLO ENGINEERS FOR PREL IMINARY DESIGN WORK ON 1HE SLUDGE/ASH HANDLING PROJECT (DP 20071) PAGE DATE 2 OF 2 July 27, 1988 The preliminary design work for a lime stabilization facility will be performed by John Carollo Engineers (JOE). JOE was selected from three engineering firms who submitted proposals for this project. Key issues in selecting the project consulting firm were prior experience and the ability to provide staff commitment for the length of the project. The preliminary design contract will be on a cost reimbursement basis with a cost ceiling of $85,000. A CEQA document will be prepared in connection with obtaining regulatory approval for a new disposal site. CEQA will be addressed prior to the design phase of the 1 ime stabi 1 izati on proj ect. RECOMMENDATION: Authorize the General Manager-Chief Engi neer to execute an agreement with John Carollo Engineers for preliminary design work on the Sludge/Ash Handling Project for $85,000. 13028-9/85 . Centr~_ Contra Costa Sanitar~ District BOARD OF DIRECTORS PAGE 1 OF 12 POSITION PAPER BOARD MEETING OF SUBJECT NO. II. BUDGET AND FINANCE 2 DATE RECEIVE THE FISCAL YEAR 1987/88 CAPITAL IMPROVEMENT PROGRAM YEAR-END REPORT 1 19 8 TYPE OF ACTION RE CE IV E RE PORT SUBMITTED BY James Coe INITIATING DEPT./DIV. Engineering Department/ P annin Division ISSUE: The Capital Improvement Budget (CIB) system provides for a year-end report to the Board of Directors on the status of the District's Capital Improvement Program. BACKGROUND: The Board of Directors adopted a new CIB system in June 1987. A mid-year status report and a year-end report on the Capital Improvement Program were included under the new system. The mid-year status report was presented to the Board in February 1988. The Fiscal Year concl uded June 30, 1988, and the final budget figures have been accumul ated for presentation in this report. A compari son of the Capital Improvement Pl an (CIP)-estimated and year-end actual revenues and expenditures is presented below: FISCAL YEAR ENDING JUNE 30, 1988 YEAR-END CIP ESTIMATE FY 1987/88 YEAR-END ACTUAL FY 1987/88 I I VARIANCE I ACTUAL TO CIP ESTIMATE REV ENU ES $18,880,000 I $18,962,000 0% EXPENDITURES $28,887,000 I $24,071,000 ( 17%) EXPENDITURES $10,007,000 I OVER $ 5,109,000 (50%) REVENUES I I Attachment 1 provides a detailed analysis of the year-end status of the District's Capital Improvement Program. Highlights are summarized below. REVIEWED AND RECOMMENDED FOR BOARD ACTION JC JMK RAB : 7;:G. ROGER J. DOLAN r~ PlT[J SUBJECT POSITION PAPER RECEIVE lHE FISCAL YEAR 1987/88 CAPITAL IMPROVEMENT PROGRAM YEAR-END REPORT PAGE 2 DATE OF 12 CAPITAL IMPROVEMENT REVENUES District revenues received from all sources credited to the Sewer Construction Fund for the Fiscal Year ending June 30, 1988, total $18,962,000, which represents sl ightly over 100 percent of the $18,880,000 revenue projected in the Capital Improvement Pl an. Tabl e 1 of Attachment 1 compares the actual and CIP estimated revenues for the entire fiscal year. EXPENDITURES FOR CAPITAL IMPROVEMENT PROJECTS District expenditures for capital improvement projects for the fiscal year total $24,071,000, which represents 83 percent of the $28,887,000 projected for expenditures for FY 1987/88 in the Capital Improvement Plan. It was estimated in the mid-year status report that the total capital improvement expenditures would be within 2 percent of the anount estimated in the Capital Improvement Plan. The actual 17 percent variance in expenditures was chiefly due to delaying the construction start date of the Dewatering System Improvement Project. The delay of this major project resulted in deferral of $4.7 million in planned expenditures from FY 1987/88 to FY 1988/89. Table 3 of Attachment 1 presents a comparison of actual and estimated CIP FY 1987-88 expenditures in each budget program. ALLOCATIONS TO CAPITAL IMPROVEMENT PROJECTS Allocations of funds from program budgets to capital improvement projects for the fiscal year total $18,930,533, which represents 81 percent of the $23,336,500 authorized by the Soard for the enti re fi scal year. Tabl e 2 of Attachment 1 presents a compari son of actual all ocati ons from program budgets to specific projects and estimates for these allocations made at the time the CIS was prepared. Suppl emental authorizati ons were requi red duri ng the fi scal year for the following projects: o The Outfall Project was accelerated slightly so that a contract was awarded before the end of the fi scal year. As a resul t, the constructi on work required a $1,266,000 supplemental authorization to the CIS Treatment Plant Program budget. o The I-680/SR-24 Relocation Project was accelerated into the 1987-88 fiscal year to accommodate Caltrans' schedule. The project required a $166,000 suppl emental authorizati on to the CIS Col 1 ecti on System Program Conti ngency Fund. 13026-9/85 SUBJECT POSITION PAPER RECEIVE THE FISCAL YEAR 1987/88 CAPITAL IMPROVEMENT PROORAM YEAR-END REPORT PAGE DATE 3 OF 12 o A construction contract for the A-I Line: Soldier Pile Installation Project was awarded during the fiscal year in response to plans to construct a new building on the adjacent Lupois property. A supplemental authorization of $65,600 to the Collection System Program Contingency Fund was required. o Supplemental authorizations were required for Early 1988/89 Vehicle Purchase ($142,400) and Water Transport Equipment ($78,000) from the General Improvements Program Contingency Fund. o Two supplemental authorizations of $49,500 and $1,200,000 were required for the purchase of the Lagiss property for a Treatment Plant buffer zone. RECOMMENDATION: Receive the Fiscal Year 1987/88 Capital Improvement Program Year-End Report. 13026-9/85 4 of 12 ATTACHt-ENT 1 CENTRAL CONTRA OOSTA SANITARY DISTRICT Fiscal Year 1987/88 Capital Improvement Program Year-End Report Detailed Analysis INTRODUCTION A new system for capital improvements planning/budgeting was established at Central Contra Costa Sanitary District in June 1987. The District's monthly Financial Management Information System (FMIS) financial statements were revised to provide specific information on the operation of the budget system, and a year-end report on the Capital Improvement Program was planned. This is the first such report under the new system. CAPITAL IMPROVEMENT REVENUES District revenues received from all sources credited to the Sewer Construction Fund for the fiscal year ending June 30, 1988, total $18,961,550, which represents slightly over 100 percent of the $18,880,000 proj ected in the Capital Improvement Pl an for the enti re fiscal year. Table 1 presents the distribution of actual versus estimated amounts among the capital revenue categories. Specific information on the status of each of the revenue categories is presented below: Interest on Investments Interest income on temporary investments of the Sewer Construction Fund for the fiscal year totals $4,732,023, which represents 111 percent of the $4,271,000 proj ected revenue for the enti re year. Interest rates remained relatively stable during the fiscal year. Fixture Fees Fixture Fees coll ected duri ng the fi scal year total $2,994,781, whi ch represents 126 percent of the $2,371,000 proj ected revenue for the entire year. The original projections for development rates were underestimated, resulting in a higher than anticipated revenue amounting to a 26 percent favorable variance in Fixture Fee revenue. Watershed Fees Watershed Fees collected during the fiscal year total $1,787,649, whi ch represents 94 percent of the $1,904,000 proj ected revenue for the entire year. Since Watershed Fees are specific to particul ar watersheds and vary between $300 and $1,253, actual revenue will vary from that projected if development occurs at a different rate than anticipated in one or more areas. S of 12 Annexation Charges Annexation Charges collected during the fiscal year total $825,434 which represents 194 percent of the $426,000 projected revenue for the enti re year. Thi s 94 percent favorabl e vari ance refl ects a higher than anticipated rate of connection in areas not previously annexed to the District, primarily in the San Ramon Valley. Ad Valorem Taxes Tax revenue for the fiscal year totals $5,582,592, which represents 112 percent of the $S,001,000 projected revenue for the entire year. Hi gher than anti ci pated revenue resul ted from a hi gher than proj ected connecti on rate and a hi gher than expected increase in property values. Funds from Government Agencies Thi s revenue category is compri sed of funds received from the City of Concord and from Cl ean Water Grants. Each wll 1 be addressed separately. City of Concord The City has paid $2,314,720 for its contribution to the fiscal year 1987-88 Capital Improvement Program. This bill ing refl ects actual expenditures for the fi rst six months of the fi scal year and a proj ecti on of expenditures for the remai nder of the year. The bil 1 ed amount represents 57 percent of the $4,065,000 projected revenue for the entire year. The 43 percent unfavorable variance for the projected amount is due to del ays in 1 arge treatment pl ant proj ects, parti cul arl y the Dewatering Project and an adjustment to the fiscal year 1986-87 billing to account for actual versus projected expenditures during that fiscal year. Clean Water Grants A "Final Payment Request" for the Stage S8 grant was submitted to the state, and the net amount of the payment received was $448,947. This payment represents 90 percent of the $500,000 projected revenue for the entire year. The payments described above, which total $2,763,667, were the only revenue coll ected in thi s category thi s year. Thus, an unfavorabl e variance in Funds from Government Agencies' revenue of approximately 32 percent exists at the end of the fiscal year. Miscellaneous Income NOTE: This is not the same "Miscellaneous" revenue category reported in the monthly FMIS Revenue Summary Report. 6 of 12 Income under this category includes revenue from cash discounts earned, rebates, and (for fiscal year 1987-88 in particul ar) bonds sol d to fi nance LID 56 - La Casa Vi a/Brodi a Way Sewer Extension (DP 4144). Miscellaneous Income for the fiscal year total $275,404, which represents 81 percent of the $342,000 projected revenue for the entire year. An unfavorable variance in Mi scell aneous Income of approximatel y 19 percent exi sts at the end of the fi scal year. Thi s vari ance is due to: (1) a lower than anticipated bond sale for LID 56 which resulted from a lower than estimated desi gn and constructi on cost for the project, and (2) deferral of the Combustion Air System Control 1 er Proj ect, whi ch was expected to accrue a rebate from P.G.& E. for a portion of the projected cost. ALLOCATIONS TO PROJECTS FROM PROGRAM BUDGETS Allocations of funds from program budgets to specific capital improvement projects during the fiscal year total $18,930,533, which represents 81 percent of the $23 ,336,500 authorized by the Board. A summary of thi s information for each Budget Program is presented in Table 2. Allocations from ProQram Unallocated Authorizations Under the CIB system, the Board of Directors authorizes budgets for the three Capital Improvement Budget Programs (Treatment Plant, Coll ecti on System, and General Improvements) from the Sewer Construction Fund at the beginning of the fiscal year. The General Manager-Chief Engineer is delegated the authority to allocate these funds to projects listed in the CIB to establish specific project budgets. Greater than anti ci pated all ocati ons in th ree 1 arge Treatment Pl ant projects were required during the fiscal year. Explanations of these three situations are presented below: DewaterinQ System Improvements When the 1987-88 Capital Improvement Budget was adopted, it was anti ci pated that the Dewateri ng System Improvements Proj ect would be awarded in October 1987. The construction contract was awarded March 3, 1988. The delay was the result of the compl i cati ons associ ated with the protest of the centri fuge prequalification decision by Bird Machine Company, as well as the rebi d of the centrifuge contract. Because the centrifuge suppl ier was not determi ned until June 1987, the desi gn phase of the proj ect had to be extended to tailor the pl ans and specifications to the equipment which would actually be furnished. An additional allocation of $875,000 was required. 7 of 12 Outf all P roj ect Additional allocation of funds ($856,000) were requested for the Outfall Project - Phase II. The reason for the additional allocation is acceleration of the construction schedule. The major construction contract was awarded at the end of fiscal year 1987-88, rather than in fiscal year 1988-89 as originally indicated in the CIS. Wastewater Reel amati on Proj ect The status of the Wastewater Reel amati on Proj ect was descri bed in a Posfti on Paper presented to the Soard of Di rectors at their February 4, 1988, meeting. In summary, the original approach, as described in the CIS, was to study and identify potential cost-effective uses for reclaimed water. The allocation estimated for this effort in the CIS was $120,000. The study found that use of reclaimed water in industrial cooling towers was potentially cost effective and that a demonstrati on proj ect coul d be impl emented as soon as th i s summer. The short implementation period was based upon this extensive use of existing facilities. The District and Contra Costa Water District have been actively pursuing a full-scale Industrial Water Reclamation Project with industries. Additional funding allocations of $621,400 were required to implement the demonstration phase of the project. Allocations from ProQram ContinQencies Under the CIS system, the General Manager-Chief Engineer is delegated authority to allocate funds from Program Contingency accounts to establish budgets for new projects not listed in the CIS and to cover project budget overruns within specific limitations. A total of $837,858 in Program Contingency funds were allocated duri ng the fi seal year to fund unanti ci pated new proj ects and one constructi on overrun (Concord Revenue Meters-DP 20013). (A 1 i sti ng of all Program Conti ngency all ocati ons can be found in the FMIS year-end financial statements.) Two new Co 11 ecti on System proj ects were notably 1 arge and exceeded the General Manager-Chief Engineer's authority to allocate conti ngency funds. In these two cases, the Soard approved the all ocati ons. Descri pti ons of the two new proj ects are presented below: 1-680/SR-24 Sewer Relocations Caltrans has initiated design of the first unit of the 1-680/ SR-24 Interchange expansi on ahead of the schedul e whi ch was avail abl e to the Di stri ct when the CIS was prepared. The 8 of 12 first unit will consist of lane widening between Newell Avenue and Rudgear Road. To accommodate the proposed widening, 2,000 feet of 36-inch sewer in South Main, 300 feet of 8-inch sewer servi ng Cross Creek, and several manhol es will have to be relocated. Caltrans has directed the District to relocate these sewers. Constructi on of the rel ocati ons must be completed by September 1988 to meet ealtrans' schedule requirements. Two allocations from the Collection System Contingency, totaling $191,000, have been made to the project to cover facilities design. A-I Line: Soldier Pile Installation The City of Walnut Creek approved the construction of a three-story sports health center (Lupois Building) at the corner of Ygnacio Valley Road and the old Southern Pacific Railroad right-of-way. The District's future A-I line will be installed immediately east of the east wall of the sports hea 1 th center. Due to a zero setback req ui rement on the proposed bui 1 di ng, the cl earance between the future pi pe and the building foundation is estimated to be less than 10 feet. Extreme difficulty is anticipated in installing shoring for the future A-I 1 i ne excavati on without causi ng any damage to the adjacent building. The soldier pile project will facilitate the installation of the A-I line in the future and has greatly lessened the potential for damage to the building. Construction of the soldier pile project was completed in December 1987. The conti ngency all ocati on for the proj ect was $65,600. Because of these two large allocations, the Collection System Conti ngency Account was depl eted. A suppl emental authorizati on of $231,600 (the amount of the conti ngency all ocati ons approved by the Board for these two projects) was granted by the Board to replenish the account during the mid-year status report process. EXPENDITURES FOR CAPITAL IMPROVEMENTS Di stri ct expenditures for capital improvement proj ects for the fi scal year total $24,071,141, whi ch represents 83 percent of the $28,887,000 projected expenditures for the entire year. (Expenditures for particular proj ects are presented in the Capital Improvement Budget Status Reports provided to the Board in the monthly FMIS financial statements.) A summary of this information for each Budget Program is presented in Table 3. FORCE ACCOUNT BUDGET Force Account 1 abor hours expended for capital improvement proj ects for the fi scal year total 68,250 hours, whi ch represents 116 percent of the 58,770 hours projected in the CIB for the entire fiscal year. 9 of 12 SlI MMAR Y The new CIS system successfully provides the Soard with a comprehensive overview of the Capital Improvement Program while improving staff accountabi 1 ity and streaml i ni ng program admi ni strati on. Actual versus proj ected performance in Capital Improvement Revenues coll ected, fundi ng allocation from Program Authorizations by staff, and expenditures for capital improvement projects for fiscal year 1987/88 have been generally favorable in terms of Sewer Construction Fund cash flow. With the presentation of a proposal for revision of the Capital Improvement Fee System this fall, the new CIS system, first presented to the Soard in conceptual form in February 1987, will be substantially compl ete. TABLE 1 CAPITAL IMPROVEMENT REVENUE SUMMARY NOTE: All amounts in thousands CIP ESTIMATED ACTU AL REVENUE REVENUE FY 1987/88 FY 1987/88 Interest $ 4,271 $ 4 ,732 Fixture 2,341 2,995 Watershed 1,904 1,788 Annexati on 426 825 Taxes 5,001 5,583 Other Concord 4,095 2,315 Grants 500 449 Mi scell aneous 342 275 $18,880 $18,962 10 of 12 VARIANCE ACTU AL TO CIP ESTIMATE 11% 26% ( 6%) 94% 12% (43%) 00% ) 09%) 0% 11 of 12 TABLE 2 SUMMARY OF ALLOCATIONS SY PROGRAM NOTE: All amounts in thousands Coll ecti on Sy stem CIS ESTIMATED ACTU AL ALLOCATIONS ALLOCATIONS FY 1987/88 FY 1987/88 $13 , 7 82 ( 1) $12,330 6,192(2) 4,492 3,363(3)(4) 2 , 1 09 V AA lANCE ACTU AL TO CIS ESTIMATE Treatment Pl ant ( 11% ) ( 27% ) General Improvements (37%) TOTAL S: $23 ,337 $18,931(5) (19% ) (1) Incl udes $1,266,000 suppl emental authorizati on for the Outfall Proj ect. (2) Includes $65,600 supplemental authorization for A-Line: Soldier Pile Installation and $166,000 supplemental authorization for 1680/SR24 Relocations. (3) Includes $49,500 and $1,200,000 supplemental authorizations for the Lagiss property purchase. (4) Incl udes supplemental authorizations for Early FY 1988/89 Vehicle Purchase ($142,400) and purchase of Water Transport Equipment ($78,000). (5) Includes allocations from Program Contingency accounts. 12 of 12 TABLE 3 SUMMARY OF EXPENDITURES BY PROGRAM NOTE: All amounts in thousands CIP ESTIMATED EXPENDITURES FY 1987/88 ACTU AI.. EXPENDITU RES FY 1987/88 VARIANCE ACTU AI.. TO CIP ESTIMATE Treatment Pl ant $10,734 $ 5,952(3) ( 45% ) Coll ecti on System 15,294 16,099 5% General Improvements 2,859 (1) 2,020(2) ( 29% ) TOT AI.. S: $28,887 $24,071 ( 17% ) (1) Includes supplemental authorizations for the Lagiss property purchase. (2) lncl udes $1,216,389 in expenditures for the Lagi ss property purchase. (3) Delays in starting the Dewatering Project resulted in expenditures equal to $4.7 million less than originally planned. . Centra. ~ontra Costa Sanitar\ Jistrict BOARD OF DIRECTORS PAGE 1 OF 8 POSITION PAPER BOARD MEETING OF Au ust 4, 1988 NO. VI I. BUDGET AND FINANCE 3 DATE Au ust 1, 1988 SUBJECT CONSIDER SUSPENSION OF INVESTMENTS IN COLLATERALIZED CERTIFICATES OF DEPOSIT AND BANKERS ACCEPTANCES AS PERMISSIBLE INVESTMENTS AND THEIR REPLACEMENT BY GCN ERNMENT SEQJRITIES TYPE OF ACTION CONSIDER CHANGE IN INV ESTMENT INSTRUMENTS SUBMITTED BY INITIATING DEPT.lDIV. Walter Funasaki, Finance Officer Administrative/Finance & Accounting ISSUE: The Board of Directors has requested information to permit consideration of the suspension of collateralized certificates of deposit and bankers acceptances as permissible investments, and their replacement by Treasury Bills and Notes. BACKGROUND: The District's investment policy, which is adopted annually, defines permissible investments to be the following: o United States Treasury Bills and Notes, and obligations of government agencies for which the full faith and credit of the United States are pledged. o Obl igations of the Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA) and Small Business Administration (SBA). o Bankers Acceptances, drawn on and accepted by a commerci a-I bank, which are eligible for purchase by the Federal Reserve System. o Collateral ized Certificates of Deposit issued by a Federal or State chartered bank or a Federal or State chartered savings and loan association. o Commercial Paper of prime qual ity 1 imited to corporations with assets over $500,000,000. o Repurchase Agreements for a period less than 30 days. o Local Agency Investment Fund of the State of California. Under the District investment pol icy, the maximum maturity for investments is one year, and the total amount invested in a single issuer will not be greater than 15 percent of the District' 5 investment portfol io val uei however the 15 percent limitation will not apply to United States Treasury Bills and Notes and investments in the State of California Local Agency Investment Fund. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT.lDIV. ~~~ 1302A-9/85 W N F ~__.___,_~___"__ '''"_______.__.,_~.~..__._..~.~___...~._.___,.,,~._~.____'._..~~_._.____,_.'_.~..,...___._..___._,,_._.._.....*._M.'._"....~.._.~.,..'________."__.__ SUBJECT CONSIDER SUSPENSION OF I~ESTMENTS IN COLLATERALIZED CERTIFICATES OF DEPOSIT AND BANKERS ACCEPTANCES AS PERMISSIBLE I~ ESTMENTS AND l1-IEIR REPLACEMENT BY GCN ERNMENT SEQJRITIES POSITION PAPER PAGE? OF 8 DATE Auaust 1, 1988 During the fiscal year ended June 30, 1988, the average monthly balance of the Di strict's temporary investments was $77,608,917. Th is bal ance was di stributed by investment type as follows: Collateralized Certificates of Deposit Bankers Acceptances Commercial Paper Federal Home Loan Bank Note Local Agency Investment Fund $50,813,083 18,054,167 408,333 3,333,333 5,000,000 $77,608,916 % 65.5 23.3 .5 4.3 6.4 100.0 As shown, the major components of the District's temporary funds are invested in collateralized certificates of deposit issued by savings and loan institutions, and bankers acceptances. Although all of the financial institutions in which District funds are invested meet standards for financial strength, Board Members have expressed concern regarding the general economic and financial risks extant and more particul arly, the financial instabil ity within certain sectors of the thrift and banking industries. The investment pol icy establ ished by the Board of Di rectors pl aces safety and 1 iquidity as paramount considerations above yield. In order to assure the safety and 1 iquidity of the District's temporary investments, the Board is considering suspending investments in collateralized certificates of deposit and bankers acceptances, and investing temporary funds which become available in short-term Treasury Bills and Treasury Notes of two or three year maturities. Investments in Treasury Notes will require revision of the District's investment policy to provide for maturities beyond the present one year limit (Attachment III). The following attachments are provided to assist the Board in its determination: Attachment I: Th is attachment summarizes the Di strict's temporary investments for the fiscal year ended June 30, 1988, showing invested amounts and interest income by investment type. The final three col umns of the attachment show the estimated interest income which would have been real ized if District funds were invested in one-year Treasury Bills or two- or three-year Treasury Notes, instead of collateral ized certificates of deposit during the fiscal year ended June 30, 1988. As shown, a $182,669 lower annual yield would have been real ized on one-year Treasury Bills; however, increased annual yields of $223,207 and $386 ,085 woul d have been real ized on the longer term two-year Treasury Notes or three-year Treasury Notes, respectively. --------- 13026-9/85 CONSIDER SUSPENSION OF INVESTMENTS IN COLLATERALIZED CERTIFICATES OF DEPOSIT AND BANKERS ACCEPTANCES AS PERMISSIBLE INVESTMENTS AND THEIR REPLACEMENT BY GCN ERNMENT SEQJRITIES POSITION PAPER SUBJECT PAGE ~ OF R DATE Auoust 1. 1988 Attachment I I: This attachment presents the projected availability of funds from the District's temporary investments in short-term Treasury Bills and longer-term Treasury Notes to meet the District's capital expenditure requi rements over the next three-year period. RECOMMEtIlATION: If, in the view of the Board of Di rectors, investment in collateralized certificates of deposit and bankers acceptances is considered to be inconsistent with the District's investment policy in today's economic and financial env ironment, consider whether: o the County Treasurer's Office should be notified to suspend investing District funds in collateral ized certificates of deposit and bankers acceptances until further notice, and to direct that funds be invested in one-year Treasury Bills and two- or three-year Treasury Notes in their stead; o the investment policy should be revised to permit maturities beyond one year for two- or three-year Treasury Notes. --------.. 1302B-9/85 ...... +' <: CD E .l: U IG +' +' < t; .... ~>-i ....I~ Q .-4 >- .. ~ ~ ~~ 11:::l en .., == Q 8~1 li~ II~ III CD <: o CD g <: ...... CD ..,+' <: 0 IGZ ~~ ~iE t: CD L. CD +' <: ...... o - '0 t e. ~ - I. t: .., CD III NCD+' -+'.... .....IGIIl IGUO L..... CD ... 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QJe >,QJ IE r- II> <Il eQJ QJII> QJII> ~'" ..... QJe .0'" lI>e QJO ;;-0 ..... QJ L.II> :II'" U.o QJ <ilL. '" .....QJ e>, QJ Er- e'" L.U QJ<Il >..... 0.... 0> QJ e.e ..... ..... 11>.... .....0 e QJQJ Ell> .....L. <Il:ll QJO >U c: ..... QJ .e ......... o 01 c:c: 0..... ..... L. ..... :II :11"0 .0 ..... "0 L.QJ .....c: <Il..... :o~ QJ QJ..... .eQJ I- "0 LIl co . r-: 0- . ,... ~ c;. C'l'l 0- CO ~ C'l'l C'l'l o N 0- .. C'l'l 0- . ~ N N ,... ,... ~ ~ .... 'iii CO .-1 0- ...... o l't'l ~ Cl e - 'g e UILIJ ~; {!.~ ';Or; :II U e III e- <u. ~ r- <CCSD Attachment I II Cen'~""al Contra Costa Sanitary District NO. POLICY & PROCEDURE EFFECT IVE January 1988 SUBJECT SECTION INVESTMENT POLICY ESTABLISHED BY; The Board of Directors REFERRING TO; The investment pol icy of the Central Contra Costa Sanitary District is embodied in the following eleven sections: I. Statement of Obj ectives The temporary investment portfol i 0 of the Di strict shall be desi gned to attain a market-average rate of return, taking into account the District's investment risk constraint and prudent investment principles. II. Permi ssi bl e Investments Within the constraints prescribed by the Government Code of the State of California for permissible investments, the District's investment portfolio will only be invested in the following instruments: o United States Treasury Bills and Notes, and obligations of government agencies for which the full faith and credit of the United States are pledged. o Obligations of the Federal Home Loan Bank <FHLB>, Federal Nati onal Mortgage Associ ati on <FNMA>, Government Nati onal Mortgage Associ ati on <GNMA> and Small Busi ness Adm i ni strati on <SBA>. o Bankers Acceptances, drawn on and accepted by bank, which are el igible for purchase by Rese rv e Sy stem. a commerci a 1 the Federal o Collateralized Certificates of Deposit issued by a Federal or State chartered bank or a Federal or State chartered savings and loan association. o Commercial Paper of prime quality limited to corporations with assets over $500,000,000. o Repurchase Agreements for a period less than 30 days. o Local Agency Investment Fund of the State of California. SSS/Position Paper II/Invest Polic I SHEET 1 OF 3 ((sD Centra. Contra Costa Sanit~,..y District POLICY & PROCEDURE SUBJECT INVESTMENT POLICY III. Banks and Dealers The District will use the services of the Treasurer's Office of the County of Contra Costa which will transact the District's investment decisions in compliance with the requirements described in this investment policy. The County Treasurer's Office will execute the Di strict's investments through such brokers, dealers, and financial institutions as are approved by the County Treasurer, and through the State Treasurer's Office for investments in the Local Agency Investment Fund. IV. Maturiti es The maximum maturity for investments of the District is one year. Prior approval of the Board of Directors must be obtained to acquire investments with maturities beyond one year. However, investments in Treasury Notes and the Local Agency Investment Fund would not be subject to the one year maximum maturity. V. Diversification To minimize the risk of loss through default, the total amount invested in a single issuer will not be greater than 15% of the District's investment portfol i 0 val ue, except that the 15% 1 imitati on will not apply to Uni ted States Treasury Bills and Notes and investments in the Local Agency Investment Fund. VI. Ri sk Credit and market risks will be minimized through adherence to the list of permi ssi bl e investments, a 1 imit on maximum maturiti es and the 1 imitati on on the total investment in a single issuer. VII. Del egati on and Authority The District Finance Officer will be responsible for investment transactions which should be made in accordance with this investment policy and within the internal controls described in Section IX. V I II. Prudence Prudent judgment must be exercised by the District Finance Officer responsible for investment transactions undertaken in accordance with this investment policy. I SHEET 2 OF 3 ((sD Central ~ontra Costa Sanitary District POLICY & PROCEDURE SUBJECT INV ESTMENT POL ICY IX. Controls The Di strict Fi nance Officer will establ ish subsi di ary accounti ng records of each investment which will enable the determination of income earned monthly and through maturity, and the balancing of the principal amounts to a control account in the general -I edger. Interna-I control procedures wi 11 requi re the countersignature of the Deputy General; Manager for all transactions which are initiated by the Finance Officer. The dollar 'limit of the Deputy General Manager will be $5 mill ion. Investment transactions which exceed $5 mill ion will requi re the additiona-I approval of the Genera-t Manager-Chief Engineer. Such interna'l controls are to be reviewed by the District's independent auditors annually. X. Reporting The District Finance Officer will annually render a statement of investment pO-J icy to the Board of Di rectors. The Fi nance Officer will submit a month'ly report to the District's Genera-' Manager-Chief Engineer and Board of Di rectors show i ng the ty pe of investment, issuer, dates of issue and maturity, amount of deposit, current market val ue of a-tl securities with a maturity of more than 12 months, and rate of interest. XI. Performance Evaluation A performance evaluation will be completed by the District's independent auditors every four years, commenci ng with the 1984-1985 fiscal year, to determine whether the investment objective of achieving a market-average rate of return is being rea-I ized. In determining the market-average rate of return, the average return of th ree month U. S. Treasury bi n s will be used. I, SHEET 3 OF 3