HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 10-18-10central
Sanitary District
REGULAR MEETING OF THE
CENTRAL CONTRA COSTA BOARD OF DIRECTORS:
MICHAEL R. JlCGILL
SANITARY DISTRICT PreW w
BUDGET AND FINANCE COMMITTEE BARBARA D //OCKEMT
Pre,iden( Prn Trm
GERALD R LUCEY
Chair Nejedly M1I NEJ
IAAfESA NE/F.O1J'
Member Hockett PHONE: (925) 128 -9500
FAX: (925)676 -7211
Monday, October 18, 2010 nivw.centralsan.org
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within their
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk,
5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours
of the meeting to a majority of the Committee are also available for public inspection at the Reception
Desk. During the meeting, information and supporting materials are available in the Conference Room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are' disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Budget and Finance Committee
October 18, 2010
Page 2
1. Call Meeting to Order
2. Public Comments
3. Old Business
4. Claims Management
*a. Review new and outstanding claims
b. Report on Vehicle Accidents
C. Review Position Paper denying claim for damages submitted by
Rob Wilkinson (Item 3.k. in Board Binder)
d. Small Claims Court action against the District by Hess Rouhafza
e. Status report on Small Claims Court action against Stephen Isaacs
*5. Review the August 2010 GASB 45 monthly statement
6. Discuss extending Cropper Accountancy firm contract for a fifth year
T Reports and Announcements
*a. Final Arbitrage Rebate Calculation for the 2002 Revenue Installment
Certificates
*b. Buchanan Fields Golf Course, Inc. regarding Loss of Revenue
Compensation Agreement
C. Internal Audit area recommended for FY 2010 -11
8. Review Expenditures (Item 3.a. in Board Binder)
9. Adjournment
* Attachment
4.a.
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AGENry RE
RETIREMENT PA
SERVICES
CENTRAL CONTRA COSTA SANITARY DISTRICT Monthly Account Report for the Period
PARS GASB 45 Program 8/1/2010 to 8/31/2010
Colette Curtis -Brown
Finance Administrator
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553
Beginning
Balance as of
Source 8 /112010
Account Summary
Contributions Earnings
Espenses Distributions
Ending
Balance as of
Transfers 8131/2010
Employer Contribution $10,305,419.15
$1,280,83000 - $206,51408
$4,014.64 $000
$0.00 $11,375,720.43
Totals $10,305,419.15
$1,280,830.00 - $206,514.08
$4,014.64 50.00
$0.00 $11,375,720.43
Investment Selection
Central Contra Costa Sanitary District 115 Trust
Investment Objective
Individual account based on Moderate HighMark PLUS. The dual goals of the Moderate Strategy are growth of principal and income.
It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital
appreciation is equally important. The portfolio will be allocated between equity and fixed income investments.
Investment Return
alized Return
55 -Yeah
7.10%
Information as provided by Union Bank, Trustee for PARS GASB 45 Program, Not FDIC Insured, No Bank Guarantee, May Lou Value
Pw Peformance does not guar^ tee future mWts Performance returns may not reflect the deduction of applicable fees, whah could reduce reamu Information is donned reliable but
may be subject to change
Investtnent Rehm Annual ed rate of ictum is the return on an investment over a penod other than one year multiplied or divided to give a comparable ancyear reran
Inceptors one Plans mcepton date
4350 Von Kaman Ave, Susie 100, Newport Beach, CA 92660 8005406369 Fox 949 250 1250 wwsv pars org
10.*
Central Contra Costa Sanitary District
October 15, 2010
TO: BOARD BUDGET AND FINANCE COMMITTEE
VIA: RANDY MUSGRAVES, DIRECTOR OF ADMINISTRATION
FROM: DEBBIE RATCLIFF, CONTROLLER &
SUBJECT: FINAL ARBITRAGE REBATE CALCULATION
The firm of Willdan Financial Services completed the Final Arbitrage Rebate Calculation
for the 2002 Revenue Installment Certificates. This final calculation was required due to
the refinancing of the revenue bonds in November, 2009.
The purpose of the calculation is to compare the interest earnings on the original
Construction Account and the existing Bond Reserve Account to the interest rate paid
on the outstanding bonds. Any excess earnings over the interest expense must be
rebated back to the Federal government.
This issue has no rebate liability (excess earnings over the bond interest rate) for the
period beginning June 6, 2002 (the original issue date) and ending September 1, 2010
(the redemption date).
A similar calculation will be performed on the 2009 Revenue Certificates of Participation
that were issued in November, 2009 in the calendar year 2014.
H:Wrbitrage Audit 2002 issue.doc
I be
Central Contra Costa Sanitary District
October 14, 2010
TO: BOARD BUDGET AND FINANCE COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN E. FARRELL, DIRECTOR OF ENGIN RIN
JARRED MIYAMOTO- MILLS, PROVISION ISION MANAGER
FROM: STEPHANIE GRONLUND, PROVISIONAL PRINCIPAL ENGIN Q�
SUBJECT: LOSS OF REVENUE COMPENSATION AGREEMENT RELATED
THE A -LINE RELIEF INTERCEPTOR PROJECT, PHASE 2A (DP
At the October 15, 2009 Board of Director's meeting, the Board was advised that the
General Manager intended to enter into a loss of revenue compensation agreement with
Buchanan Fields Golf Course, Inc. (Golf Course) for construction activities related to the
A -Line Relief Interceptor Project, Phase 2A (DP 5980). At this meeting staff reported a
preliminary estimate of $70,000 for reimbursable lost profits over the 14 -month
construction period. The estimate was based on a preliminary review of uncertified
financial reports provided by the Golf Course and considered only lost revenue due to
the driving range.
Subsequent to this Board meeting, staff and the Golf Course each hired separate
independent appraisers to do detailed estimates which included lost revenues due to
private lessons, rounds played and merchandise sales in addition to those lost from the
driving range. Both consultants have extensive experience in evaluating reduced profits
of private businesses due to public projects. The District's appraiser concluded that
$96,000 would be an equitable settlement for lost profits of their operations. However,
the Golf Course's appraiser reported $192,941 was justified.
The District's appraiser reviewed the Golf Course's report in detail and advised staff that
the Golf Course's report was based on fundamentally sound methodology and the
difference in value is attributed to each appraiser's selected assumptions. As an
example, the assumption made by the District's appraiser for the length of the "recovery
period" following construction was shorter than that projected by the Golf Course's
appraiser, and thus the lost profits projected by our appraiser were less than those
projected by their appraiser. The District's appraiser, however, stated that all listed
assumptions from both reports are defensible and each lies within the industry's
acceptable ranges. The District's appraiser also concluded that additional research and
analysis may not resolve these differences.
Loss of Revenue Compensation
A -Line Relief Interceptor Project, Ph. 2A
Page 2 of 2
October 14, 2010
Additionally, the Golf Course requested $35,000 for reimbursement costs for the loss of
service of irrigation wells that were removed during the project. However, Contra Costa
County, fee owner of the lands leased by the golf course and original installer of the
wells, was previously reimbursed the well replacement costs when the District acquired
the permanent easement through the property. In spite of this previous payment, staff
has acknowledged that although the wells are not the property of the golf course and
the use of wells for irrigation purposes is not currently needed due to the availability of
recycled water, the Golf Course has experienced a loss in not being able to use these
wells in the future.
To resolve both the loss of revenue and loss of future use of the irrigation wells issues,
staff and the Golf Course have agreed to a settlement of $167,500. This matter has
taken a significant period of time to resolve, and both the County and the Golf Course
were very cooperative throughout the project and this process. This concludes the right
of way needs for the A —Line Relief Interceptor, and preserves the positive working
relationship we have with the County.
SG:nap
NARight- of -WayW -Line Relief Interceptor Project \Buchanan Fields \10 -18 -10 Board Budget and Finance Committee Buchanan 10-
18-10.doc