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Home My WebLink AboutAGENDA BACKUP 11-03-83 San BOARD OF DIRECTORS NO. IV. Hearings 1 11/ /8 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT Oc to be r 21 198 TYPE OF ACTION HOLD A PUBLIC HEARING ON DISTRICT ANNEXATION 85 (WOOD RANCH) AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION HOLD HEARING: DA 85 SUBMITTED BY Den n i s Ha 11 INITIATING DEPT.!DIV. Construction & Services Division ISSUE: The District must hold the subject hearing and consider testimony by affected property owners before acting on the proposed annexation. BACKGROUND: LAFC approved the subject annexation on August 10, 1983. LAFC added other properties to the original petitioned area to improve the continuity of the resulting boundaries. LAFC also approved amendment of the SOl of the District to include the subject annexation and additional territory. The proposed annexation is within the Sycamore Val ley Specific Plan area as designated by Contra Costa County. The Specific Plan, approved on June 23, 1981, requires that provisions for installation of 4,000 feet of off-site sanitary sewer trunk line be completed prior to filing the first final subdivision map in the plan area. The first subdivision in the proposed annexation area (anticipated to be a Broadmoor Homes development) will be responsible for satisfying the off-site sewer requ i remen t. The annexation as approved by the LAFC is legally inhabited. Legal notice has been published, and the affected property owners have been notified of the subject hearing as required by law. An EIR was prepared for the project by Contra Costa County. District staff has reviewed the Final EIR and determined that mitigating measures specified in the Final EIR are within the responsibility and jurisdiction of agencies other than this District excepting the actual construction of the future public sewer system. During construction of this public sewer system, the District will ensure that methods and procedures will be used to minimize its effect on the environment and to minimize any effect to existing area residents. A guide to conducting the public hearing is attached. Depending on the amount and nature of protests filed (if any), the Board may do one of the following: 1. Terminate proceedings if 50 percent or more of the areals registered voters protest the annexation and do not withdraw their protests. 2. Order the territory to be annexed subject to an election if either 25 percent (or more) of the areals registered voters or 25 percent (or more) of the landowners owning not less than 25 percent of the total assessed value of the land in the area protest the annexation and do not withdraw their protests. REVIEWED AND RECOMMENDED FOR BOARD ACTION RAB INITIATING DEPT.!DIV. II! JSM 3. Order the territory annexed without an election if less than 25 percent of the registered voters or landowners protest the annexation. 4. Continue hearing at a future date. Anticipating that no protests (or insufficient protests) will be filed, the following recommendation is made. RECOMMENDATION: Approve the annexation, adopt a resolution ordering completion of the annexation, concur with LAFC amendment of District SOl, and certify that the Board has reviewed and considered the Final EIR of the Sycamore Valley Specific Plan. REVIEWED AND RECOMMENDED FOR SOARD ACTION INITIATING DEPT./DIV; GEN. MGR'/CHIEF ENG. ----'-~--------------_....~._---,.,_......,-_..~---------'---~'-'-'-'._----,-----_._- CCC5() :-- tnlTlTlTl - PROPOSED ANNEXATION PROPOSED ANNEXATION QA. 85 ATTACHMENT TO POSITION PAPER DISTRICT ANNEXATION NO. 85 OCTOBER 21, 1983 1. Open publ ic hea ring 2. Hear pub I i c testimony 3. Close pub I i c hearing 4. Consider any testimony 5. Take appropriate action as outlined in the position paper <e<SD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. V. Bids & Awards 1 11/3/83 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE October 28, 1983 SUBJECT AWARD OF CONTRACT FOR THE PROCESS CONTROL ANALOG BACKUP PROJECT AND AUTHORIZE $49,418 IN SEWER CONSTRUCTION FUNDS TYPE OF ACTION AWARD OF CONTRACT SUBMITTED BY Will iam Brennan INITIATING DEPT./DIV. Plant Operations/Operations Issue: On October 21, 1983, sealed bids for providing process control analog backup for the District's Water Pollution Control Plant, were opened. The Board of Directors must award a contract or reject proposals within 30 days of the opening of bids. Background: The Plant Operations Department staff have identified the minimum number of process control loops necessary to operate the treatment plant without computer control. A prototype unit for analog backup was successfully installed on the final effluent gravity valve to test analog logic required. A second unit was installed on the primary effluent pumps by Telstar Instruments. Due to the heavy work load and involvement in the furnace project by the Plant Operations Department Instrumentation Shop, a decision was made to go out to bid for the remaining analog instrument loops. The project was advertised on October 9 and 14, 1983, inviting contractors to make a required site inspection and bid on the job. Bids were received ranging from $34,876.54 to $88,679. The apparent low bidder is Telstar Instruments, Inc. Telstar will provide bonding within 10 days, which is acceptable to the Purchasing Section. A proposal to use alternate controller enclosures for two loops and install the controllers for the remaining loops in existing cabinets is acceptable to the Plant Operations Department. In addition to managing the construction, Plant Operations Department personnel will install an additional controller as backup on the electric aeration blower, which is the most economical way to do this particular loop. Recommendation: Award the contract for Process Control Analog Backup to Telstar Instruments, Inc. per their bid and authorize $49,418 in Sewer Construction funds for construction, contingencies, and in-plant work. REVIEWED AND RECOMMENDED FOR BOARD ACTION WE.8 WEB CWB INITIATING DEPT./DIV. TREATMENT PLANT PROJECT T0064P PROCESS CONTROL ANALOG BACKUP ITEM DESCRIPTION ftJv\OUNT 1. CONSTRUCTION CONTRACT $34,876.54 2. ESTIMATED CONSTRUCTION CONTINGENCIES (5%) 1,744.00 3. CONSTRUCTION MANAGEMENT 3,500.00 4. PURCHASE AND INSTALLATION OF ELECTRIC BLOWER CONTROLLER 2,500.00 5. INSTALLATION FINAL EFFLUENT GRAVITY VALVE CONTROLLER AND PRIMARY EFFLUENT PUMP CONTROL 6,797.00 $49,417.54 $49,418 October 26, 1983 MEMORANDUM TO: CHARLES W. BATTS, PLANT OPERATIONS DEPARTMENT MANAGER FROM: Pat O'Connor, Senior Buyer SUBJECT: PROCESS CONTROL ANALOG BACKUP PROJECT, BID REQUEST To064p Formal bidding commenced with publication of Notice to Contractors on October 9 and 14, 1983. Three contractors completed the site inspection, as required, and were give\their package upon completion of the inspection. Bids were publ icly op'enedandread on 'Friday, October:l1, 1983. Tabulation is as follows: Contractor Bid Amount Exceptions Telstar Instruments, Inc. $34,876.54 Standard Meter Labs AKA James Electric Diablo Control Co. $88,679.00 Bonds in 10 days Controller, enclosure substitute, Eliminate enclosure loops 3-8 None $40,147.00 None The exceptions by Telstar Instruments, Inc. are acceptable to the District in that they satisfy the conditions of the Technical Specifications, provide additional and more direct control to the loop system than specified, and afford a savings in material cost. The lowest responsible bidder is Telstar Insruments, Inc. They have previously performed contract work for the District and demonstrated that they can fulfill the requirements of the contract. Telstar Instruments, Inc. bid is below the engineer's estimate of $50,000. Purchasing, therefore, recommends that you prepare the Position Paper to the Board of Directors recommending award to Telstar Instruments, Inc., for installing the Process Control Analog Backup System at t~e lu:~\sum price of $34,876.54. f ~IO-~C, Patrick O\Connor Senior I!uyer PO:gv Attachment cc: W. Brennan K. Moon K. Laverty r '!: "' t. ... ,.-~ ~"J ~ ~ -r -J o o to- ~ j 8 15 e ~ ~ ::J : t. (i ~. i C !(J ~ ~ fl '- ~!;I' :r 61L<l' ~ ~ .I~ !O- .~'I!I~I" ~ ~ ~ c::t Id. -J .~ o ",I c:: . ~ ~I~a .! ~ 1IC V\ '~ t ~ ~ i ~ ..... ii . ..'" -u z - ::JII: L ..... j!!,! elf ..... zY :JII: L .A'" j!Y ~ ~f ~ .~ j. 'I ~ ~~ ~ ... L . a-: ~ ll~ ~!J ~ ~ 1st t:: '" 11 ~ ~ .' II: i ~. i 'Z~..: cBa~ i ~85 811:~:!lIiL !juB ~ g 5 god ~ II: ~ ,>COo":o$=;:) 411 Q iii II. o .Z o .~ ... ::2 III ~ i z .. s Z 2 0 'I i .. !<< o ~ il ~~ ~ ti I ~ a- ~ ~ ~ r 1 ~ ~ ...J N ~ Ir i u II: ! ~ ~ ~ ~ ii- 0 ~ ; . :I .. i ~'i_ '6 o Ow s '" ~ ! ~ ~ ~ \i \f) . .~ T' ~ .~ ~r. . ~, I , 1:00 ~ '" is. ..a r ~ .., to' ~ ~ .;; o t iZ ~ '. .'G. .~ . . ~. \II i. , ~, c ~ l ~ I \l; .! ~ ~ ~ ., ., <C<SD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. VI. Consent Calendar 11 8 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT EXECUTE AGREEMENT RELATING TO REAL PROPERTY WITH DAVID STEARNS, ET UX, JOB 1571, PARCEL 36 October 24 TYPE OF ACTION APPROVE REAL PROPERTY AGREEMENT SUBMITTED BY Dennis Hall ISSUE: The property owner wantsto install an elevated wooden deck and grade level "SII shaped brick paving over a portion of a District sewer easement. BACKGROUND: Staff has determined that the improvements will not interfere with the present use of our sewer; however, if the need should arise, the agreement requires the property owner to remove the structure at his expense within 30 days of notice to do 50. RECOMMENDATION: Approve and execute IIAgreementl1 and authorize its recording. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. "t' DH fI'!sM 1JII4AB ., 0\:', \ , / " \ ~ ~\ ;... ~ ,'t ~ ~ ~ '.""'.:,. ~ ~~ \ ...~ ~ , s' ~rl ~\ ";, H.. ....... \ . iii It'" ....., \ ~", . ,~ \. ~ ';; \\ _: 3; ;.\ \~ \~~, ,~- ;'~' ~ "'~~' 'l\~ ' ~~- '-' J \t(;., 5CJ^/E~E.N-r EASE ~~'\'~ \ t ~; \\ "\, '\ '\ 'i- , , \~ \~ ' ,/ .~ '" \ / ';L,- Iy HIv1EN7 / ENCI<OAC ,,~~.. }- -. , \ \ \. '. -1 ': ';\: , . a. ", 0, / -; '. . \ \ \i ...~,- ;, .... .. ~ ~ ~~ I Ji \~ t ,,-,0' ': " I i I ... '^ I I / I -. . I I I~,,:: AGREEMENT PROPERTY REAL PARCEL 36 JOB 1571 ORINDA AREA . . z -\ , i~_ ~~ ~ "' \ \. --~\ ! 1\ \ J ''I i CD ". (' " BOARD OF DIRECTORS NO. VI. Consent Calendar 8 11/3/83 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE October 21, 1983 SUBJECT EXECUTE AGREEMENT RELATING TO REAL PROPERTY WITH ROBERT D. CADENA, ET UX, JOB 894 - PARCEL 14 TYPE OF ACTION APPROVE REAL PROPERTY AGREEMENT SUBMITTED BY Dennis Hall INITIATING DEPT./DIV. Construction & Services Division ISSUE: The property owner wants to install a swimming pool adjacent to a District sewer easement. The concrete pool decking will encroach into the easement. BACKGROUND: Staff has determined that the improvements do not interfere with the present use of our sewer; however, if the need should arise, the agreement requires the property owner at his expense to remove the structure within 30 days of notice to do so. RECOMMENDATION: Approve and execute "Agreement" and authorize its recording. REVIEWED AND RECOMMENDED FOR BOARD ACTION ~tt DH INITIATING DEPT ./DIV. JSM ~ ~ u ~ ~ \J ~ \.:: ~ \.J L1 tif e rJ fA L--AfJ e CH/1DI/V1~ H(!)tlSG. - -- ~r--'- ---..~. I . , . " ?t?o/ ; : 1 /'./ . .~" \\.--_:_.~~ ~ - - ---- _f-- !'A~-r ~cP'Adi - -(56;; &ASeMf:JJ-r fA SITE Real Property Agreement Job 894 Parcel Pleasant Hill 14 Area , \~ s ~ ~ \\\ I BOARD OF DIRECTORS NO. VI. Consent Calendar 9 11/3/83 POSITION nAp R I VIA: ROGER J. DOLAN r-.K E General Manager-Chief Engineer DATE October 21. 1983 TYPE OF ACTION SUBJECT EXECUTE GRANT OF EASEMENT AGREEMENT FROM CONTRA COSTA COUNTY - JOB 3208B - TERMINAL ROAD AT BUCHANAN FIELD AIRPORT EXECUTE GRANT OF EASEMENT AGREEMENT SUBMITTED BY Den n i s Ha I 1 INITIATING DEPT./DIV. Construction & Services Division ISSUE: The subject easement must be granted for the planned public sewer to be installed to serve new development on the northern portion of the county airport property. BACKGROUND: The subject easement document includes several conditions which are necessary because of the county's obligation to operate a publ ic airport. The District's counsel has reviewed and approved the subject document. RECOMMENDATION: Execute Grant of Easement and accept it for recording. REVIEWED AND RECOMMENDED FOR BOARD ACTION JSM RAB ./"'\~ " ~ ~HI~ENG. v-/ ~ f INITIATING DEPT./DIV. Jlt DH filII! ~~ BOARD OF DIRECTORS NO. VI. Consent Calenda lOll/3/8 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT QUITCLAIM SEWER EASEMENT, JOB 3576 WALNUT CREEK AREA October 13 1983 TYPE OF ACTION APPROVE QUITCLAIM OF EASEMENT SUBMITTED BY Denn is Ha 11 INITIATING DEPT./DIV. Construction & Services Division ISSUE: The property owner, Austin Pacific Corporation, has requested the District to quitclaim a portion of an existing easement. BACKGROUND: The subject easement was created to serve a parcel of land located northeast and adjoining Austin Pacific Corporation's property. That parcel is now served by a sewer main in another location; therefore, the subject easement is no longer required. RECOMMENDATION: Approve and execute Quitclaim Deed and authorize its recording. REVIEWED AND RECOMMENDED FOR BOARD ACTION !i~ DH !~(1 INITIATING DEPT./DiV. ~~ ~~ \ r, ~ QUITCLAIM 10' 5.S.e. fI/Lf-GRADE AVE, t'- t"- <;:: <~ . ~ p 1 QUITCLAIM EASEMENT JOB 3576 I BOARD OF DIRECTORS NO. VII. Collection Syst I 11/3/83 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE October 31, 1983 SUBJECT AUTHORIZE $30,000 FROM SEWER CONSTRUCTION FUNDS FOR DESIGN OF REMODEL PROJECT FOR CSO DEPARTMENT WALNUT CREEK FACILITY TYPE OF ACTION AUTHORIZE FUNDS SUBMITTED BY James Coe, Senior Engineer INITIATING DEPT./DIV. Collection S ISSUE: The CSO Department offi ces, meeting areas, storage, locker room, show- ers, and restroom faci 1 ities require improvements in order to mitigate space, environmental, efficiency, and general maintenance problems currently experienced within the 27 year old building. Funds are re- quired to design and bid a remodel project for the CSO Department Walnut Creek facility. BACKGROUND: The CSO Department facility currently requires 300 S.F. for offices, a 240 S.F. conference room, a 200 S.F. storage area for rain gear and hipboots, 500 S.F. increase in locker room area with improved ventila- tion, additional showers, two Bradley sinks, 200 S.F. increase in train- ing room/lunch room area and a change in traffic pattern to separate the lunch room from the locker room entry hall, a lower level women's restroom, a 200 S.F. area for crew leaders and maps, and other miscel- laneous improvements, repairs, and maintenance. The District has studied the following options addressing this issue. I. Relocation A. Construct new CSO office and yard facilities on existing Treatment Plant property in Pacheco. 1. Estimated construction cost $2,150,000. 2. Freeway access along the I -680 corri dor wi 11 deteri orate unt i 1 1992 when CAL/TRANS improvements wi 11 improve the travel efficiency of the Pacheco location as a base for field operations. B. Construct new CSO yard facility in close proximity to the District H.O.B. in order to take full advantage of centraliza- tion and existing office space. 1. Yard facility space is currently unavailable. REVIEWED AND RECOMMENDED FOR BOARD ACTION .!"Z:-. , ':U:G om.lo'v. II. Renovation A. Comprehensi vely renovate the Di stri ct I s Walnut Creek Offi ce building to extend the life of the building for another 25 years to accommodate current and future requi rements of the CSO Department and provide the entire upper level (5,800 S.F.) as available rental area. 1. Estimated construction cost $647,000. 2. Estimated gross rental income (based on a conservative rate of $0.85/S.F.) $59,200 per year. II I. Remodel A. Remodel the lower level of the District's Walnut Creek Office building to mitigate space, efficiency, environmental, and maintenance problems and provide the entire upper level (5,800 S.F.) as available rental area. 1. Estimated construction cost $200,000. 2. Anticipated minimum gross rental income ($0.85/S.F.) $59,200 per year. 3. Ant i c i pated mi n i mum net rental income ($0. 60/S. F. after PG&E and maintenance) $41,800 per year. Since travel time between Pacheco and Walnut Creek is anticipated to increase significantly before and during the 1-680 widening project, re 1 ocat i on of CSO to the Treatment Pl ant is not cons i dered a vi ab 1 e alternative until the freeway project completion date which is currently estimated to be 1992. In order to addrefs immedi ate faci 1 ity concerns without committing to a long term major i vestment which would limit the District's future option of centralizt on, a minimum scope remodel project is recommended. RECOMMENDA TI ON: 1. Authorize $30,000 in sewer construction funds for the design of a remodel project of the CSO Department Walnut Creek facility. 2. Lease the entire upper 1 eve 1 of the Walnut Creek facil ity at a minimum of $0.85/S.F.. 3. Authorize staff to pursue a plan of acqulrlng property adjacent to the District H.O.B. on which to construct a CSO Department yard facility on a schedule coordinating with the planned 1-680 improvements. REVIEWED AND RECOMMENDED FOR SOARD ACTION INITIATING DEPT./DIV. GEN. MGR./CHIEF ENG. BOARD OF DIRECTORS N~VI I I. BUDGET & FINANC 1 11 8 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT RECEIVE AUDIT REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1983 October 25, 1983 TYPE OF ACTION Receive Audit Report SUBMITTED BY Walter Funasaki, Finance Officer INITIATING DEPT./DIV. Administrative/Accountin ISSUE: The District's audited financial statements and related audit report for the fiscal year ended June 30, 1983 are being submitted to the Board of Directors. BACKGROUND: Hood and Strong, the District's independent auditors, have completed their audit of the financial statements for the fiscal year ended June 30, 1983, and have prepared their audit report thereon. The audit report and financial statements were reviewed in draft form with the Budget and Finance Committee of the Board of Directors and District Management. As a result of the review, a number of financial statement revisions were made and a detailed analysis of Retained Earnings was completed. Attached as Exhibit 2 is a letter from Hood and Strong which contains recommendations to improve the District's system of internal accounting control, based on observations during the examination of the financial statements for the fiscal year ended June 30, 1983. A summary of the auditor's recommendations and the District's recommended actions is presented as Exhibit 1. RECOMMENDATION: Receive the audit report of the financial statements for the fiscal year ended June 30, 1983. REVIEWED AND RECOMMENDED FOR BOARD ACTION d'~'=' WF PM RJD Exhibit 1 CENTRAL CONTRA COSTA SANITARY DISTRICT Summary of Auditor's Recommendations and District Actions Hood and Strong Recommendation I. Cash Receipts 1. Lock currency and checks at all times during working hours. 2. Restrictively endorse all checks upon rece i pt. 3. The current weekly deposit schedule should be revised to a more frequent basis. I I. Cash Disbursements 1. Keep working stock of blank checks and signature stamps in the locked vault until actually needed. 2. A check protector should be used. 3. Manual signatures should be used for checks in excess of a stip- ulated limit. III . Property, Plant and Equipment 1. An annual inventory of furniture 1. and equipment should be completed. IV. General 1. An accounting policy manual 1. should be developed. District Action 1. Currency and checks will be kept locked during working hours. 2. All checks will be restrictively endorsed da i 1 y. 3. An assessment will be completed by November 30, 1983 to determine the potential exposure of loss of of funds from weekly deposits and the expense of more frequent deposits. 1. The working stock of blank checks and signature stamps are now kept in a locked cabinet in the vault. 2. A combination check protector and facsimile signature machine will be acquired when the current check supply is depleted. 3. A procedure in which an alternat~ signatory is appointed who may sign checks in the primary signer's absence will be implemented. An annual inventory of furniture and equipment will be performed at the end of each fiscal year. The Financial Management Information System (FMIS) fixed asset application which will be used for the inventory will be operational December 1983. The accounting policy manual is intended to be produced for the new FMIS and is on the 1983-1984 Goals and Objectives. Hood and Strong Recommendation 2. An independent review of the new computer system should be performed once the system is fully operational. 3. The liability for compensated absences should be recorded for fiscal years beginning after December 31, 1983, in compliance with National Council of Governmental Accounting Statement 4. (2) District Action 2. Consideration to an independent review will be given after the system is fully operational. 3. A recommendation will be made to the Board during the 1983-1984 mid- year budget review for establishing the liability for compensated absences in the 1984-1985 fiscal year. Exhibit 2 HOOD AND STRONG CERTIF"IEO PUBLIC ACCOUNTANTS /O/-C+nm J}7V3d. ~//.50a k~,~-ea.9/1/11 TELEPHONE ('lIS) 7el-07~3 October 4, 1983 BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 Imhoff Place Martinez, CA 94553 Gentlemen: We have examined the financial statements of CENTRAL CONTRA COSTA SANITARY DISTRICT for the year ended June 30, 1983, and have issued our report thereon dated August 24, 1983. As part of our examination, we made a study and evaluation of the Company's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the Company's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. The management of Central Contra Costa Sanitary District is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are exe- cuted in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that proce- dures may become inadequate because of changes in conditions or that the degree of compliance 'with the procedures may deteriorate. BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT October 4, 1983 Page 2 Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of Central Contra Costa Sanitary District taken as a whole. However, our study and evaluation disclosed no condition that we believe to be a material weakness. This report is intended solely for the use of management and should not be used for any other purpose. During our audit we noted general situations in which a weakness in internal control was observed. The following is a summary of our observations and recommendations to improve controls and operational efficiency. CASH RECEIPTS Although the majority of tlle District's revenues are received independently through the county, significant amounts of funds are received through the mail and the permit department at the District's office. The physical controls over these funds could be improved as follows: 1. Currency and checks on hand should be kept in a locked cash box at all times during working hours to limit access to these funds. 2. All checks should be restrictively endorsed upon receipt rather than when the bank deposits are prepared. 3. Weekly deposits are currently made except for extra- ordinary amounts which are deposited immediately. Consideration should be given to making more frequent deposits when the normal receipts are received. This procedure would decrease the accessibility to these funds. BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT October 4, 1983 Page 3 CASH DISBURSEMENTS The internal controls in the cash disbursement systems appear to be very good. The following recommendations are to enhance the existing controls. Our comments and recommendations are as follows: 1. Working stock of blank checks and signature stamps are currently stored in an unlocked file cabinet during working hours. Since checks are prepared only once a week, we recommend that the working stock of blank checks and signature stamps be kept in the locked vault until they are actually needed. 2. The District is not using a check protector, but is currently looking for one. A check protector is an excellent control to prevent defalcations of amounts. 3. During the engagement, we noticed that all checks above a certain amount were not being hand signed. Even though the District's policy at that time allowed a name stamp to be used in the signer's absence, the District's new procedures should strengthen the control in this area. PROPERTY, PLANT AND EQUIPMENT Since the District has a considerable investment in its fur- niture and equipment, an annual inventory should be held to insure that all items are on hand. The District is currently in the process of developing a system to assist in taking a physical inventory. The process of tagging the furniture and equipment is under way. In addition, a fixed asset program has been acquired for the new computer system to assist in this area. BOARD OF DIRECTORS CENTRAL CONTRA COSTA SANITARY DISTRICT October 4, 1983 Page 4 GENERAL The following comments are less detail-oriented than the prior comments and should be considered in the future: 1. The District has not had an accounting policies manual in the past. The development of a manual is currently underway. The account policies manual should be helpful in areas such as training new staff, identifying problem areas such as duplication of efforts and determining proper and consistent accounting treatment. 2. The District is currently implementing a new computer system. Although the two firms assisting in this imple- mentation are very knowledgeable in this field, con- sideration should be given to an external independent review once the system is fully operational. 3. It is the District's current policy not to accrue com- pensated absences. The National Council of Governmental Accounting Statement 4 requires that the accrual be made in compliance with FASB 43 for fiscal years beginning after December 31, 1983. * * * * * We believe that your accounting personnel should be compli- mented on the excellent job that they have done. It was evident that they have been providing management with timely and accurate information throughout the year. We appreciate the opportunity to give you our comments and recommendations. We wish to thank Mr. Walter Funasaki and his staff for the courtesy and cooperation extended to us by your staff during our audit involvement. Very truly yours, ~~~.. MHM/eh )- <CCSD Central Contra Costa Sanitar) District BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer No.VI I I. Budget & Finane 2 11/3/83 DATE October 25, 1983 SUBJECT TYPE OF ACTION ADOPT RESOLUTION ESTABLISHING 1983-1984 PROPOSITION 4 APPROPRIATIONS LIMIT. ADOPT APPROPRIATIONS LIMIT SUBMITTED BY N. Funasaki Finance Officer INITIATING DEPT./DIV. Administrative/Accounting ISSUE: The Central Contra Costa Sanitary District is required to establish its appropriations 1 imit in accordance with Article XI I IB of the California Constitution. BACKGROUND: At the October 6, 1983 Board Meeting, the Board of Directors authorized posting a publ ic notice of the availability of documentation in support of the District's appropriations limit. As required by statute, the publ ic notice was made at least fifteen days prior to the November 3, 1983 Board Meeting at which adoption of the appropriations limit is recommended. The Sewer Construction Fund (Capital Fund) appropriations limit is $7,548,830 for the 1983-1984 fiscal year. RECOMMENDATION: Adopt a resolution establ ishing the Sewer Construction Fund appropriations limit in the amount of $7,548,830 for the 1983-1984 fiscal year. REVIEWED AND RECOMMENDED FOR BOARD ACTION INlgd~ WNF PM