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HomeMy WebLinkAboutAGENDA BACKUP 02-02-84 <C<SD Central Contra Costa Sanitary District BOARD OF DIRECTORS N~ IV. CONSENT CALENDAR 1 2/2/84 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 23, 1984 TYPE OF ACTION SUBJECT EXECUTE CONSENT TO COMMON USE WITH CONTRA COSTA COUNTY JOB 3844, PARCEL 1 EXECUTE CONSENT TO COMMON USE Denn i s Ha 11 INITIATING DEPT./DIV. Construction & Services SUBMITTED BY ISSUE: A public sewer has been designed to cross an existing County drainage easement. A "Consent to Common Use" is required to permit the District to cross the prior-existing drainage easement. BACKGROUND: This document is identical to others which both agencies have used in the past. It permits the District to cross the existing drainage easement while retaining the Countyls prior rights. RECOMMENDATION: Approve and execute Consent to Common Use. REVIEWED AND RECOMMENDED FOR BOARD ACTION DH JSM RAB IOcr- f//I! INITIATING DEPT./DIV. ! 100 . . ~c ~6UL fr ,----' I. IjEHDA U(L(ItRVO, 2. RANCHITOS (JrL 5OL, J PALMA vl~lA j ~ .: CAMPO PELOT ^ ~ CENT RO ;n;r~ O~^' 't." _ .")80 ~.. ~,'.-- --~Q. ..... ....'9<:-';-'1 "1(#/ 1 ~'-' ~ o'-~'!.-~" \ r.. 0"'-1 00 -.J Q:~' _w.. --dr-_ ~ c) 1Iilliit'---___!/ i... ~1' ""ro. ::: fY$ $,/ ~):;...!~~Ck,:. i$"", '~" OR~" ." DI~'~0 ,'f! "';~"u~.", .' SITE J DJ\l\lVILLE I" \ C:>a ~. . ~ ~, <r- '.Y" ....~ 4'..r,:._ CONSENT TO COMMON USE JOB 3844 - PARCEL 1 Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. I V. CONSENT CALENDAR 2 2 2 84 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 23, 1984 SUBJECT TYPE OF ACTION AUTHORIZATION FOR P.A. 84-4 TO BE INCLUDED IN A FUTURE FORMAL ACCEPT FOR PROCESSING ANNEXATION TO THE DISTRICT Denn is Ha 11 INITIATING DEPT./DIV. Construction & Services SUBMITTED BY Parcel No. Area Owner Address Parcel No. & Acreage Remarks Lead Agency 84-4 Danvi lIe K. Davison (R. H. Sawyer) 155 Dean Road Danville, CA 94526 196-031-03 (1.0 AC) Existing house with a fail- ing septic system. District to prepare "Notice of Exemp- t ionl' CCCSD RECOMMENDATION: Authorize P.A. 84-4 to be included in a future formal annexation. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. lOfr DH 11I/IJ YV" JSM NG. RJD -95 ~;~ .A II 11 "\.14 \ ~,I" A),.\ ,~ - -.: '::.. OJ 20 Z1 .---(' 14 :-- \ .": ., 13 4 "Eo ~ ~ ~ ' ,,.,..~ 'laP .l~4 ~i;:{..;.: < ~ II : 5 i-': !o 5 U\B~\, ':{:\.:\. ~ I ~ 8~<Q ~ ~~99 ;::;;;':..;::- l'" rr """"-......... ~..., 'l!:.u II :!.:{:'.''';' ~ -... .:: .:.:.: . .:.... :.:.:'!:!;:..::.. "\ ~ - _--.........:~ ~:";. X;:'>;'::;/:. '.':\iN\_5- 11 ~ ---.t.l" ". . ...... ...........:... -, d '2 I;"''' ' 5 12" :-!'.>..' .....;...<'.;:.~::::~:.~7' ~e .\~ ' 15 I ~ ei1; "':'. O,,~ 14 : ~nr: ., 10 ~ :It...... ~ ~ ..lD ? en ~ ." v1 ~ NEX ~ "- AN - ~ ~.......'''''.....' i><<<'" /: .ADO H '~: O~ 2 350 AC "I'm:\( r\. 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J'j~ '<.~ ~ . tr~ J f 98AC 20 ICQ 19AC I 36AC 2 2C AC 131 AC I.IDAC 129AC .3IAC II~AC 282 AC 10 AC 2 45AC 1.22 AC LA I QAe 115 AC - 101 AC 20 AC o OA "~ I OOAC 275 AC 117AC 215 AC OAC 10AC ""~'" \ 1.17AC ~3 Inn 10AC 1,14Ae ,0"'(. ~' 94AC 90AC 116;;; :::"~:~"':r.:<,; 40 I 15A I 124AC: It ACA, CC,om ia.- \...-.\ I ':':- I ~'08AC ,',' \. L---,I V'" j / I .' f r~;;; ....i~'~~; J 79 '\ as ,~ ../. ~ ,00 c~ ~ ~I_I)'I g1 ~ ~ I: rl ..~ "I t --4 g~ 1."-<........- ~ lO~ ~- - i- , ~ C..,1 ,0111 >< ~\.<",..,., .::,......0 ....,.".,,~.., V gO 6':" ,O~ ~ ,..., ..(~ ~ 00' . 96 ~ c> .,. ~ 9'2. '''Ii &'!I \ c'( 1- ,'/o~~ ~~'2.\~ 1,0 OS80RN 95 90 ~~ III 6' 1'!1\. \n n~~~ 3220 AC SU } 6 ~~' 1~\s~k. ..~~~ ~ .. PROPOSED ANNEXATION ~. ~'~. 'L~~ P A. 84-4 ~0'~~ ~ >=.. ~~ 1_ Contra Costa Sanitary District BOARD OF DIRECTORS VIA: ROGER J. DOLAN General Manager-Chief Engineer N~ IV. CONSENT CALENDAR 3 2/2/84 January 24, 1984 POSITION PAPER DATE SUBJECT TYPE OF ACTION ACCEPT THE CONTRACT FOR THE INSTAllATION OF THE SERVICE AIR COMPRESSOR (PROJECT 3812) AND AUTHORIZE THE FiliNG ACCEPT CONTRACT WORK OF THE NOTICE OF COMPLETION SUBMITTED BY D. J. Re i nd 1 INITIATING DEPT./DIV. Construction and Services Division ISSUE: The contract for modification of the service air system is ready for acceptance. BACKGROUND: Champion Plumbing and Heating started work on the project on September 22, 1983. The project was substantially complete on November 21, 1983. All items of work have been completed, and it is appropriate to accept the project. RECOMMENDATION: Accept the contract for the installation of the Service Air Compressor (Project No. 3812) and authorize the fil ing of the Notice of Completion. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. Lih~ ' DJR <C<SD Central Contra Costa Sanitary District BOARD OF DIRECTORS V. WATER POLLUT I ON NO. 2/2/84 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE 84 January 25, 19 SUBJECT AUTHORIZATION OF $25,000 IN SEWER CONSTRUCTION FUNDS TO COMPLETE THE RELOCATION OF THE GRIT SYSTEM TYPE OF ACTION CAPITAL EXPENDITURE SUBMITTED BYWi 11 iam Brennan, Senior Engineer INITIATIti.G. DEPT.~DIV. . . ~Iant Operations Department/Operations ISSUE: On July 14, 1983, the Board of Directors authorized funds to build the first phase of the Plant Operations Department grit system project. This was comprised of an elevated platform for one existing hydrogritter unit and a concrete driveway. At that time the Board was informed that a second unit would be installed to handle the large volumes of grit which are carried into the plant during wet weather flows and to provide backup to the initial unit. The authorization did not cover the cost of installing the second unit. BACKGROUND: The grit system In the Plant Operations Solids Conditioning Building was an operational and maintenance problem because of the distance and 1 ift required to bring the grit from the preaeration tanks to the third floor of the building. The first phase of the grit system project reduced the maintenance and energy costs. This second phase will provide appropriate backup and greater process efficiency during wet weather flows. The second phase will consist of an expansion of the existing platform to accommodate a second hydrogritter with appropriate piping and electrical service. A metal panel roof and walls to the south and west designed to protect operators and equipment will be fabricated from decking similar in appearance to that used on structures elsewhere in the treatment plant. The cost of this work is estimated to be $25,000. RECOMMENDATION: Authorize $25,000 in sewer construction funds to complete the relocation of the grit system. REVIEWED AND RECOMMENDED FOR BOARD ACTION wa? .WJ! INITIATING DEPT./DIV. WEB CWB RJD TREATMENT PLANT PROJECT RELOCATION OF GRIT SYSTEM ITEM DESCRIPTION AMOUNT Construction of platform expansion $18,750 2 Mechanical 2,000 3 Electrical 3,000 Subtotal $23,750 4 Contingencies (5%) 1,250 Total $25,000 BOARD OF DIRECTORS N~ VI. COLLECTION SYSTE 1 2/2/84 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 18, 1984 SUBJECTAUTHORIZE THE GM-CE TO EXECUTE A CONTRACT WITH HAVILAND ASSOCIATES FOR ARCHITECTURAL SERVICES FOR DESIGN OF CSO DEPARTMENT REMODEL PROJECT - DSP 3836 TYPE OF ACTION Authorize Execution of Contract SUBMITTED BY Robert H. Hinkson INITIATING DEPT./DIV. Collection System Operations ISSUE: The CSO Department requires a remodel project in order to mitigate space, environmental, efficiency, and general maintenance problems at the Walnut Creek facility. BACKGROUND: The CSO Department facility requires additional office space, a conference room, a drying room for rain gear and boots, a larger locker room with improved ventilation, additional showers and sinks, a larger training room and lunch room, a crew leader/map room, and a lower level women's shower a~d restroom. The Board has authorized $15,000 in sewer construction funds for the design of a remodel project at the CSO Department Walnut Creek facility. The following proposals for architectural services have been received: 1. Confer and Nance a. Completion of construction documents not to exceed.......................................... $15,000 b. Bidding through construction of completed project not to exceed.......... ...... ... .... ....... 5,000 Tota 1 (not to exceed).. $20,000 2. Perata/Sy 1 vester /Mutte r a. Completion of construction documents not to exceed.......................................... $16,000 b. Additional services including construction consulting billed on a time and mate:r'ial basis with no limit specified. 3. Haviland Associates a. Completion of construction documents not to exceed.......................................... $1 0,200 b. Bidding through construction of completed project not to exceed........ ... ................... 1,800 Tota 1 (not to exceed).. $12,000 District staff has negotiated a contract agreement with Haviland Associates to perform the required services at a total cost not to exceed $12,000. RECOMMENDATION: Authorize the GM-CE to execute a contract with Haviland Associates for architectural services for design of the department remodel project (DSP 3836). REVIEWED AND RECOMMENDED FOR BOARD ACTION '--. J ~~ ~ ; ! ' ...d , '" ' '\.J""" INITIATING DEPT./DIV. RH J RC Costa Sanitary District BOARD OF DIRECTORS NO. V II. BUDGET POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE January 24, 1984 SUBJECT TYPE OF ACT ION RECEIVE 1983-1984 SIX MONTH 0 & M BUDGET REVIEW Receive Budget Review SUBMITTED BY Walter N. Funasaki, Finance Officer INITIATING DEPT./DIV. Administrative ISSUE: A comparative review of actual and budgeted Operations and Maintenance revenues and expenses for the first six months of the fiscal year ending June 30, 1984 has been performed. BACKGROUND: The results of the review of the actual and budgeted Operations and Maintenance revenues and expenses for the six months ended December 31, 1983 are summarized in the following sections. DISTRICT REVENUES The amount of $14,273,092 was recorded from all revenue sources through the six months ended December 31, 1983, representing 88.9% of the $16,062,044 of total revenues budgeted for the fiscal year. The principal revenues budgeted are $13,244,344 of Environmental Quality Charges and $2,400,000 of Service Charge Revenue from the City of Concord. The amount of $13,157,058 of Environmental Quality Charges was recorded as revenue through December 31, 1983, $12,658,531 of which has been credited to the District's account through the Contra Costa County's property tax rolls. The amount of $788,900 has been received from the City of Concord as an advance payment of one-half of the service charges for the first six months of the current fiscal year. The balance of the budgeted service charge revenue of $1,611,100 is considered to be realizable during the remainder of the fiscal year. As the two princ ipal revenue accounts, comprising 97.4% of budgeted revenues, are considered to be fully achievable, the total budgeted revenues of $16,062,044 are projected to be realizable in the 1983-1984 fiscal year. DISTRICT EXPENSES Total District expenses of $7,414,345 for the first six months of the fiscal year were $764,377 less than budgeted expenses of $8,178,722. Explanations of major under- expended or overexpended accounts for the six months ended December 31, 1983 are provided for each department in Attachment I. A summary of the budgeted and actual expenses by department for the six months ended December 31, 1983, and the projected variance from budgeted expenses for the 1983- 1984 fiscal year are shown on the next page. REVIEWED AND RECOMMENDED FOR BOARD ACT/ON IN~TING DEPT./DIV. . Od~.LJ WF PM Six Months Ended 12/31/83 De"artment Budqet Actual Administrati ve $1,086,215 903,045 Engineering & Construction 917,000 880,420 Collection Systems Operations 1,190,014 1,088,680 Plant Operations 4,390,826 4,043,210 Pump Stations 594,667 498,990 Total District $8,178,722 7 ,414,345 Compensated Absences - Attachment II ACCOUNTING ISSUES Favorable (Unfavorable) Projected Fiscal Year Ended 6/30/84 Favorable (Unfavorable 183,170 54,000 36,580 101,334 347,616 95,677 764,377 40,000 123,000 30,000 247,000 (250,000 ) $ ( 3,000) A number of issues involving changes in the method of accounting for compensated absences and postemployment benefits, and the establishment of a general overhead charge to capital projects and an 0 &. M contingency account are reviewed in the following attachments: Accounting for Compensated Absences Accounting for Postemployment Benefits Administrative and General Overhead o & M Contingency Account Attachment II Attachment III Attachment IV Attachment V RECOMMENDA TION: Receive the 1983-1984 Six Month 0 & M Budget Review and Attachments I through V, and provide observations and comments to District staff. INITIATING DEPT ./DIV. REVIEWED ~ND RECOMMENDED "OR 80~RD ~CTION GEN. MGR.lCHIEF ENG. ttachment I Opererations and Maintenance Budqet Variances Administrati ve Department Expenses for the six months ended December 31, 1983 totaled $903,045, and were $183,170 less than the budgeted expenses of $1,086,215. The underexpenditure of 16.9% is primarily the result of the following causes: Property Insurance expense is $23,749 less than budget because of highly favorable rates realized through the obtaining of competitive quotations from the District's two brokers. This account is projected to be $30,000 underexpended for the fiscal year. Liability Insurance expense is $14,953 less than budget for the same reason described in the preceding explanation. This account is projected to be $25,000 underexpended for the fiscal year. Electrical expense for the Headquarters Office Building is $14,516 less than budget because of a delay in projected rate increases. This account is projected to be $21,000 underexpended for the fiscal year. Legal Services expenses are $12,017 less than budget because of a lower than anticipated volume of non-capital litigation matters during the first six months of the fiscal year; however, the legal expense accounts are projected to be substantially equivalent to budget for the fiscal year. Election expense is $46,355 less than budget because the billing from the Contra Costa County Election Office which was expected to be received by December 1983 was not submitted until January 1984. This account is expected to be $8,000 underexpended for the fiscal year. The balance of the underexpenditures occurred within accounts in which the variances were less than $10,000, or produced a variance percentage less than 15%. Most of these accounts are projected to be substantially equivalent to budgeted expenses for the fiscal year; however, Salaries and Wages - Management will be $30,000 overexpended as a result of a termination payment to the former Deputy General Manager upon retirement in January 1984. The Administrative Department's expenses are projected to be $54,000 underexpended for the fiscal year ending June 30, 1984, as a result of underexpenditures of $30,000 in Property Insurance, $25,000 in Liability Insurance, $21,000 in Electricity and $8,000 in Election Expense, offset by a $30,000 overexpenditure in Salaries and Wages - Management. Engineering Department Expenses for the first six months ended December 31, 1983 totaled $880,420, and were $36,580 less than budgeted expenses of $917,000. The 4.0% underexpenditure is primarily the result of a $5,000 favorable variance in Technical Services expense caused by a delay in reprinting the Standard Specifications and use of Engineering Division staff for typesetting/printing graphics, $30,101 and lower than budget non-management salaries and wages and employee benefits, offset by an unfavorable variance of $11,318 in Printing Chargeouts due to the delay in the reprinting of the Standard Specifications. The Engineering Department's net expense, after capitalized Salaries and Wages and related employee benefits and overhead, are projected to be substantially equivalent to budgeted net expenses for the fiscal year. -1 - . ._--_.,~---_._-_._---------~ ~._-,,_.,-..._-,_...._,.""."--~~--~'" ,-^"....,.,-"--,.,-~._-_.~,~"--_._._..,,...- ,._"-_._,._._.._--------~_._~_."--_.,,._.~----_.._..-.-.--------.-....--..-".-,----.- Collection System Operations Department Expenses for the six months ended December 31, 1983 totaled $1,088,680, and were $101,333 less than budgeted expenses of $1,190,014. The 8.5% underexpenditure is primarily the result of non-management salaries and wages and related employee benefits being $67,367 under- expended because of unfilled staff positions, and a favorable variance of $10,421 in Gasoline, Oil and Fuel due to a delay in purchases, offset by an unfavorable variance of $16,656 in Outside Repairs and Maintenance caused by unanticipated emergency repairs to the outfall line and for storm repairs. The projected underexpenditure in non-management salaries and wages and related employee benefits for the fiscal year of $62,132 is likely to be partially offset by higher than budgeted Claims Expenses during the remaining six months of the fiscal year; however, the department's total projected expenses for the fiscal year are anticipated to be $40,000 underexpended primarily in Salaries and Wages - Non-Management. Plant Operations Department Expenses for the six months ended December 31, 1983 totaled $4,043,210, and were $347,585 less than the budgeted expenses of $4,390,826. The 7.9% underexpenditure is primarily the result of the following causes: Operating Fuel expense is overexpended by $41,561 due to the purchasing of backup diesel fuel in the first six months instead of the second six months of the fiscal year, as budgeted. This account will be substantially equivalent to budget for the fiscal year. Chlorine expense is $8,030 higher than budget because of an unanticipated 10 percent price increase and slightly higher yearly flows. This account is projected to be $6,000 overexpended for the fiscal year. Polymer expense is $46,707 less than budget as a result of a Goals and Objectives program to reduce polymer usage, and a negotiated 5 percent price reduction. This account is projected to be $100,000 underexpended for the fiscal year. Electrical expense is $81,145 underexpended because of a delay in anticipated rate increases. This account is projected to be substantially equivalent to budget for the fiscal year. Maintenance Supplies expense is overexpended by $17,188 because of higher than anticipated use of lubricants and miscellaneous supplies for plant maintenance. This account is anticipated to be $20,000 overexpended for the fiscal year. Rents and Leases expense is $11,361 overexpended because of unanticipated equipment rental requirements in the Plant Maintenance Division. This account is projected to be $4,000 overexpended in the fiscal year. Technical Services expense is underexpended by $5,478 due to the deferred startup of the security guard service; however, because of the increase in the level of security service, this account will be $40,000 overexpended for the fiscal year. -2- Computer Maintenance expense is $26,377 underexpended because of lower than anti- cipated maintenance requirements; however, several major repair projects have been deferred to the second six months of the fiscal year, and this account is projected to be substantially equivalent to budget for the fiscal year. Lime Expense is overexpended by $3,886 for the six months ended December 31, 1983; however, it is projected that decreased lime usage due to lower flows and lessened lime requirements during the furnace starting will result in an underexpenditure of $20,000 for the fiscal year. Salaries and Wages - Contra and Employee Benefits - Contra have a favorable variance of $56,594 for the six months ended December 31, 1983. The favorable variance is projected to remain in this amount for the fiscal year primarily because of the furnace project. The balance of the underexpenditures occurred within accounts in which the variances for the six month period were less than 15%; most of these accounts are projected to be substantially equivalent to budgeted expenses for the fiscal year; however, a cumulative underexpenditure of $16,406 is projected for the fiscal year, primarily within chemical and sludge removal accounts. The Plant Operations Department is projected to be $123,000 underexpended for the fiscal year as a result of the following account variances: Favorable (Unfavorable) Chlorine Expense $ (6,000) Polymer Expense 100,000 Maintenance Supplies (20,000 ) (4,000 ) (40,000) Rents and Leases Technical Services Lime Expense 20,000 Salaries and Wages and Employee Benefits-Contra 56,594 All Other Expenses 16,406 $123,000 -3- Pump Stations Expenses for the first six months ended December 31, 1983 totaled $498,990, and were $95,677 less than budgeted expenses of $594,667. The 16.1% underexpenditure is primarily the result of $60,059 less than budgeted Electrical expense because of a delay in anticipated rate increases and lower than projected flows for the first six months of the fiscal year. The Pump Stations expenses are projected to be $30,000 underexpended in Electrical expenses for the fiscal year. -4- .-----___._____._._.___.___._.o..___..,.___,___"~.... .._. ."...._...____,.~_~.___._.___."_"_,_..._"'_.._._,__.~_.......___._..___.-______ .I.l...4.tachment II Accountinq for Compensated Absences Accounting and financial reporting for state and local governments is guided by principles established by the National Council on Governmental Accounting (NCGA). NCGA Statement 1, which provides guidance for accounting and financial reporting for accumulated unused vacation and sick pay, was adopted on May 27, 1982 and is effective for fiscal years beginning after December 31, 1982. Although the recording of the liability for these compensated absences is required as of the 1983-1984 fiscal year, a calculation of the liability at the end of the 1982-1983 fiscal year was necessary to determine the cumulative liability which will be reported as a restatement of the Retained Earnings balance of the Running Expense Fund. The increase or decrease in the cumulative liability as of June 30, 1984 will be recorded as a charge or credit to 1983-1984 operations. As of June 30, 1983, the liability for compensated absences consisted of $519,000 for unused vacation and $1,044,000 for accumulated sick pay for a total of $1,563,000. The Running Expense Retained Earnings as of June 30, 1983 of $2,565,000 is sufficient to absorb the prior year charge of $1,563,000. The liability for compensated absences as of June 30, 1984 is estimated to increase by $200,000 - $300,000; this charge to 1983-1984 operations and maintenance expense has not been included in the 0 & M budget. \ttachment III Accounting For Postemployment Benefits The firm of Hood and Strong, District auditors, was engaged to review alternative accounting procedures for recognizing medical, dental and life insurance expense for retired employees and their dependents. The District's current accounting policy is to recognize the expense as the monthly premiums are paid. This procedure is one of the three alternatives found in current accounting practice, as described below: 1. Pay-as-you-go: This is the policy currently used by the District. This method considers the expense to be an ongoing expense of doing business. 2. Terminal funding: Under this method, a liability for future payments and the related expense are recorded at the time the employee retires; a charge to expense is made at the time of retirement. 3. Accrual over the period of service (service lives) of the employees: This method considers the expense to be similar in nature to pension plan payments. An accrual for the estimated cost of future benefits is made during the service lives of the employees. This method requires an actuarial cost calculation in order to recognize both the liability and expense over the service lives. The Financ ial Accounting Standards Board (F ASB) which establishes general accounting policies is currently reviewing the accounting for pension plans. In a preliminary memorandum entitled "Employers Accounting for Pension and Other Postemployment Benefits" issued in April 1983, the F ASB proposed that "the cost of retirees health care and life insurance benefits should be accrued during the service lives of the employees who are expected to receive those benefits, provided the amounts involved are material. Pay-as-you-go (cash basis) and terminal funding (accrue at retirement) methods would not be acceptable methods for recognizing such costs in accrual basis financial statements." Comments are considered by the F ASB before a final pronouncement is issued and this process can extend over a few year period. The recommended procedure requires recording a liability for the estimated cost of future benefits over the service lives of the employees. Each year, an expense for current service costs, based on an actuarial study, would be recorded. As of the effective date of change, a liability for the actuarial present value of benefits attributable to prior service for both current and retired employees would be recognized. The cumulative effect of this accounting change would be charged to retained earnings, or a separate line item in the income statement. An actuarial calculation of the liability for the estimated cost of future benefits over the service lives of employees, and the present value of benefits attributable to prior service for both current and retired employees is in progress and is expected to be available in early February 1984. Staff anticipates recommending implementation of the change in accounting in fiscal year 1984-1985 after the actuarial results are received. The recommendation will be included within the 1984-1985 budget process. The liability for postemployment benefits may be continued on an unfunded basis, or it may be established as a funded plan. A recommendation on funding will also be made after receipt of the actuarial results. tachment IV Administrative and General Overhead The Board of Directors was informed during the 1983-1984 0 & M Budget process that a provision for an administrative and general overhead allocation to capital projects would be implemented. The calculation of the District's overhead rate has been completed in accordance with guidelines established in Federal Management Circular 74-4 which prescribes requirements for federally funded projects. The computed administrative and general overhead rate of 30.75% will be uniform ally applied to all District capital projects. The budgeted administrative and general overhead for the six months ended December 31, 1983 was $124,925; the actual overhead amount computed is $128,787. ttachment V o & M Contingency Budqet Account It is proposed that an 0 & M contingency budget account procedure be instituted in the next fiscal year beginning July 1, 1984. The purpose of the contingency budget account is to provide a means of supplementing the budget of expense accounts which are extremely difficult to estimate, and thereby reduce a conservative bias in budgeting for these expenses; the Claims Expense account is an example of such an expense which is fortuitious and volatile. The contingency budget account is intended to be used for major, unforeseen expenses which could not reasonably have been anticipated during preparation of the budget, and is not provided for routine overexpenditures in expense accounts. The contingency budget account would be established and controlled by the Board of Directors. The procedure for establishing the contingency budget account and authorizing transfers of amounts from the account is described below: 1. A lump sum amount would be established by Board authorization within a contingency budget account in the Administrative Department's 0 & M Budget for each fiscal year. 2. Department Managers may request transfers of amounts from the contingency budget accounts to augment expense account budget balances where the amount to be transferred is at least $1,000, and justification for the augmentation is provided to either the General Manager-Chief Engineer or the Board of Directors based on the amount of the requested augmentation: o Requests of $5,000 and under may be approved by the General Manager-Chief Engineer o Requests greater than $5,000 require approval by the Board of Directors 3. When approved, Accounting will complete the transfer by reducing the contingency budget account balance and increasing the budget for the expense account to be augmented. 4. The budgeted amount of the expense account augmented will be footnoted in the financial statements in the month in which the transfer occurs. 5. Accounting will prepare a monthly report of the transactions within the contin- gency budget account showing the beginning account balance, details of each transfer made, and the resulting remaining balance in the contingency account.