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HomeMy WebLinkAbout09-07-00 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2000 No.: 3.a. CONSENT CALENDAR Type of Action: ADOPT APPROPRIATIONS LIMITS Subject: ADOPT A RESOLUTION ESTABLISHING THE 2000 -2001 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION Submitted By: Initiating Dept. /Div.: Debbie Ratcliff, Controller Administrative /Finance & Accounting REVIEWED AND RECOMM DED FOR BOARD ACTION. D. Ratcliff . Morsen Charles General ISSUE: The Central Contra Costa Sanitary District is required to establish its appropriations limit in accordance with Article XIII B of the California Constitution. RECOMMENDATION: Adopt a resolution establishing the Sewer Construction Fund appropriations limit in the amount of $42,890,560 for the 2000 -2001 fiscal year, in accordance with Article XIII B of the California Constitution; select the change in the local assessment roll due to local nonresidential construction, for use in computing the appropriations limit. o_i ►�' ALTERNATIVES /CONSIDERATIONS: The appropriations limit could be calculated using the California per capita personal income percentage change of 4.91 as opposed to the local assessment roll due to local non - residential construction of 7.1 percent. BACKGROUND: On July 20, 2000, the Board of Directors authorized posting a public notice of availability of documentation in support of the District's appropriations limit. As statutorily required, the public notice was made at least 15 days prior to the September 7, 2000 Board Meeting at which the adoption of the appropriations limit is recommended. The appropriations limit is increased annually by a factor comprised of the change in population combined with either the change in California per capita personal income or the percentage change in the local assessment roll from the preceding year due to local nonresidential construction. The Board must select between the per capita personal income, or the change in the local assessment roll due to local nonresidential construction, by a recorded vote. Last year the Board selected the change in the local assessment roll, which was the larger of the two percentages, for the calculation of the 1999 -2000 appropriations limit. This approach allowed for a larger limit on the District's proceeds of taxes. S: \ADMIN \POSPAPER \approp.pp.wpd Page 1 of 3 POSITION PAPEr> Board Meeting Date: September 7, 2000 Subject: ADOPT A RESOLUTION ESTABLISHING THE 2000 -2001 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION The County Assessor has determined the nonresidential construction index for 2000 -2001 to be 7.1 percent. The California per capita personal income percentage change is 4.91. The change in the local assessment roll of 7.1 percent is being used in the calculation of the 2000 -2001 appropriations limit, to allow for a larger limit on the District's proceeds of taxes. The Sewer Construction Fund (Capital Fund) appropriations limit so computed is $42,890,560 for the 2000 -2001 fiscal year. The District's proceeds of taxes are budgeted to be $6,581,000 for the 2000 -2001 fiscal year. Interest on these taxes proceeds are estimated to be $145,000. Therefore, total tax proceeds plus interest is $6,726,000 which is well within the appropriations limit set for the 2000 -2001 fiscal year. RECOMMENDED BOARD ACTION: Adopt a resolution establishing the Sewer Construction Fund appropriations limit in the amount of $42,890,560 for the 2000 -2001 fiscal year, in accordance with Article XIII B of the California Constitution; select the change in the local assessment roll due to local nonresidential construction, for use in computing the appropriations limit. SAADMIN \POSPAPER \approp.pp.wpd Page 2 of 3 RESOLUTION NO. A RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2000 -2001 WHEREAS, the Central Contra Costa Sanitary District is required under Article XIII B of the State of California Constitution to establish and adopt an Appropriations Limit for each fiscal year; and WHEREAS, the District has determined the Appropriations Limit of its Sewer Construction Fund (Capital Fund) for fiscal year 2000 -2001 to be $42,890,560; and WHEREAS, the selection of the alternative growth factor between the per capita personal income or the change in the local assessment roll due to local nonresidential construction must be made by recorded vote; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Central Contra Costa Sanitary District does hereby adopt the Appropriations Limit for said Fund in the amount of $42,890,560 for the fiscal year ending June 30, 2001, based upon the selection of the change in the local assessment roll due to local nonresidential construction. PASSED AND ADOPTED this 7th day of September 2000, by the District Board of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: COUNTERSIGNED: Secretary of Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Kenton L. Alm District Counsel President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California SAADMIN \POSPAPER \approp.pp.wpd Page 3 of 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2000 No.: 3.b. CONSENT CALENDAR Type of Action: CONFIRM ASSESSMENTS Subject: CONFIRM AND LEVY FINAL ASSESSMENTS FOR THE CHARLES HILL CIRCLE CONTRACTUAL ASSESSMENT DISTRICT NO. 98 -2, DISTRICT PROJECT 5307 Submitted By: Initiating Dept. /Div.: Curtis W. Swanson, Division Manager Engineering /Environmental Services Division REVIEWED AND RECOMMENDED FOR BOARD ACTION. 0 � c.,t„^-r- C. Swanson A. Farrell General ISSUE: Work has been completed on the Charles Hill Circle Contractual Assessment District No. 98 -2 (CAD No. 98 -2), and the final assessments can be established and levied. RECOMMENDATION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Charles Hill Circle CAD No. 98 -2, District Project 5307. FINANCIAL IMPACTS: This action will allow the District to be reimbursed for project costs totaling $319,833. WA tkyj *K6161 0 9 • . - BACKGROUND: The Board of Directors ordered improvements for the Charles Hill Circle CAD No. 98 -2 at its meeting held on April 15, 1999. The work to install the improvements has been completed, and the final costs are known. The final costs are shown in Exhibit A. Based on these final costs, the final assessments for each property have been determined and appear as Exhibit B, Assessments Roll. The Board is requested to confirm and levy these final assessments and to authorize a Notice of Assessment to be recorded. A resolution has been prepared, which, if adopted, will confirm and levy assessments and authorize the recording of the Notice. This resolution is included as Exhibit C. RECOMMENDED BOARD ACTION: Adopt a resolution confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the County Recorder for the Charles Hill Circle CAD No. 98 -2, District Project 5307. 8/28/00 U:\ PPr\ Raposa\ CharlesHiliCAD .98- 2.FinalAssess.wpd Page 1 of 6 r EXHIBIT A CHARLES HILL CIRCLE CONTRACTUAL ASSESSMENT DISTRICT C.A.D. NO. 98 -2; TWELVE PARCELS FINAL COSTS ITEM QUANTITY /UNITS AMOUNT Construction 8 -inch sewer 2,250 LF 223,425 Standard Manhole 11 EA 27,170 Rodding Inlet 1 EA 1,605 4 -inch laterals 12 EA 16,800 Construction Subtotal 271,758 Contingency N/A Total Construction Cost 271,758 Private Engineering Survey and Design 1 lump sum 30,237 Material Testing 1 lump sum Included Other Agency Fees 1 lump sum 668.12 Right of Way 1 lump sum 6,000 Engineering Design Contingency 1 lump sum N/A Total Private Engineering Cost 36,905 District Services Plan Review 1 lump sum 3,386 Construction Inspection 1 lump sum 4,784 Administrative Charges 1 lump sum 3,000 Total District Costs 11,170 ACTUAL PROJECT COST (CONSTRUCTION + PRIVATE ENGINEERING + DISTRICT) 319,833 UNUSED RESERVE FUND - 5% OF CONSTRUCTION COST 15,468 BUDGETED TOTAL PROJECT COST 335,301 8/28/00 U:\ PPr\ Raposa\ CharlesHilICAD .98- 2.FinalAssess.wpd Page 2 of 6 EXHIBIT B CHARLES HILL CIRCLE CONTRACTUAL ASSESSMENT DISTRICT C.A.D. NO. 98 -2 FINAL ASSESSMENT ROLL ASSESSMENT NUMBER PARCEL DESCRIPTION TAX ROLL ASSESSMENT AMOUNT (10 -YR EQUAL PAYMENTS)(1) PREPAID AMOUNT(2) 1 260- 050 -001 -7 3,708.34 26,652.75 2 260- 050 -002 3,708.34 26,652.75 3 260- 072 -006 -0 3,708.34 26,652.75 4 260- 072 -005 -2 3,708.34 26,652.75 5 260 - 072 -010 -2 3,708.34 26,652.75 6 260- 071 -004 -6 3,708.34 26,652.75 7 260 - 071 -003 -8 3,708.34 26,652.75 8 260- 071 -006 -1 3,708.34 26,652.75 9 260- 040 -005 -1 3,708.34 26,652.75 10 260- 040 -003 -6 3,708.34 26,652.75 11 260- 030 -002 -0 3,708.34 26,652.75 12 260- 050 -003 -3 3,708.34 26,652.75 (1) Interest rate for annual assessments is 6.75 %. (2) Does not include reserve fund. 8/28/00 U: \PPr \Raposa \C harlesH ill CAD. 98- 2. Final Assess. wpd Page 3 of 6 EXHIBIT C RESOLUTION NO. RESOLUTION CONFIRMING FINAL ASSESSMENTS AND AUTHORIZING RECORDING DEMONSTRATION PROJECT - CHARLES HILL CIRCLE CONTRACTUAL ASSESSMENT DISTRICT NO. 98 -2 The Board of Directors of the Central Contra Costa Sanitary District resolves: This Board has taken a series of actions preliminary to establishing final assessments for the Demonstration Project - Charles Hill Circle Contractual Assessment District No. 98- 2, Central Contra Costa Sanitary District, Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted its Resolution of Intention (Resolution Nos. 98 -083 and 98- 097) to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Curtis W. Swanson, Principal Engineer, to prepare the report required by Section 5989.22 of the Streets and Highways Code. 2. Pursuant to Resolution No. 98 -098, the Board approved a map showing the boundaries of the land benefitted by the proposed improvement. A copy of the boundary map was filed in the office of the County Recorder of the County of Contra Costa on the 16" day of September, 1998, on page 20 in Book 63 of Maps of Assessment and Community Facilities Districts. The improvement is generally described as follows: Construction and installation of approximately 588 linear feet of sanitary sewer line, together with appurtenant work and facilities located along Charles Hill Circle and Hartford Road in Orinda, California. 3. The Board established April 15, 1999, as the date for a public hearing to create the Charles Hill Circle Contractual Assessment District No. 98 -2. 4. The owners of record were provided ballots 45 days before the hearing on which owners could indicate approval of or opposition to the imposition of assessments. 5. The Board of Directors conducted a public hearing on April 15, 2000, pursuant to Section 5898.26 of the Streets and Highways Code and gave every person present an opportunity to comment on and object to the proposed Contractual Assessment Program, the improvement and the extent of the Assessment District. 8/28/00 UA PPr \Raposa \CharlesHillCAD.98 -2. Final Assess. wpd Page 4 of 6 6. The Board found that no written protests against the proposed improvement were made by owners representing more than one half of the area of the land to be assessed for the improvement. All of the owners of record voted to approve the imposition of assessments. 7. The Board approved the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report, one of which was a table of estimated assessments. 8. The Board found that the Engineer's Report, fairly and properly apportioned the cost of the improvement to each parcel of land in the Assessment District in compliance with the Agreement between the owners and District and in proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. A draft version of the Agreement, within which the owners voluntarily and unanimously agreed to the imposition of an assessment, was attached as an exhibit to the Engineer's Report and was incorporated by reference. 9. Lastly, the Board ordered the improvement described in paragraph 2 and as detailed in the Engineer's Report. 10. The work on the improvement has been completed pursuant to a private agreement entered into by the owners, and was accepted on December 3, 1999. The final costs for the improvement have been determined; the final assessments for each property have been determined; and a Notice of Assessment will be sent to each property owner after the Board confirms the final assessments. 1 1 . The final assessments for each property appear on the Assessment Roll. The Board hereby confirms and levies each individual final assessment as stated in the Assessment Roll. 12. Payment of all or any part of such final assessments may be made at the office of the Controller, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, California 94553. The deadline for receipt of such payment by the Controller is the close of business on October 31, 2000. Thereafter, unpaid assessments will be payable in yearly installments of principal and interest at 6.75 percent compounded annually over a period of ten (10) years. 8/28/00 UA PPARaposa\ CharlesHiIICAD .98- 2.FinalAssess.wpd Page 5 of 6 PASSED AND ADOPTED this 7th day of September, 2000, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California APPROVED AS TO FORM: District Counsel 8/28/00 UA PPr \Raposa \CharlesHillCAD.98 -2. Final Assess. wpd Page 6 of 6 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2000 No.: 6.a. TREATMENT PLANT type of Action: AUTHORIZE AGREEMENT Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LANDFILL GAS AGREEMENT WITH MM MARTINEZ ENERGY LLC Submitted By: initiating Dept.Xiv.: James L Belcher Plant Operations Department /Maygtenance REVIEWED AND RECOMMENDED FOR BOARD ACT /ON. aox__ J. Belcher J. Kelly K. Alm General ISSUE: Board of Directors' approval is requested for this Landfill Gas Sales Agreement. RECOMMENDATION: Authorize the General Manager to execute a Landfill Gas Sales Agreement with MM Martinez Energy LLC to supply landfill gas for five years beginning August 1, 2000. FINANCIAL IMPACTS: Under the terms of the new contract, the 30 percent discount could save the District $600,000 more than the current contract over five years. ALTERNATIVES /CONSIDERATIONS: Alternatives to signing this contract would be to not use landfill gas, continue under the existing evergreen extensions, or continue negotiating. BACKGROUND: The District has used landfill gas in its furnaces and auxiliary steam boilers since 1983. The current landfill gas contract with Acme Landfill expired on July 1, 1999. We are currently operating under the contractual 90 -day evergreen extensions. The terms of the new contract are: 1. Five -year contract effective August 1, 2000. 2. The landfill gas discount will be 30 percent (from burner tip natural gas costs) with a floor of 52.50 /decatherm. For natural gas costs above $5.00 per decatherm, the 30 percent discount will increase by 50 percent of the incremental increase above $5.00. 8/31/00 S: \Correspondence \POSPAPR \2000 \Landfillgas.JLB.wpd Page 1 of 2 POSITION PAPER Board Meeting Date: August 17, 2000 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LANDFILL GAS AGREEMENT WITH MM MARTINEZ ENERGY LLC 3. MM Martinez Energy LLC is responsible for all regulatory compliance up to the point of delivery, which is where the landfill gas enters the Solids Conditioning Building. 4. For all of the landfill gas system inside the Solids Conditioning Building, MM Martinez Energy LLC will provide to the District $4,800 per year toward the Title V testing and compliance costs. Acme Landfill has leased the gas rights, collection system, and compressor package to NEO /ACME, a wholly owned subsidiary of NEO. NEO /ACME is a 50- percent controlling partner of MM Martinez Energy LLC. NEO is a wholly owned subsidiary of Northern States Power, a utility in Minnesota. MM Martinez LLC has also expressed an interest in selling landfill gas- derived electrical power to the treatment plant. Further staff recommendations may follow. The economic value of this contract is represented by the savings provided to the District for using landfill gas in lieu of natural gas for the treatment process. The treatment plant uses approximately 200,000 decatherms of gas per year in the auxiliary steam boilers and sludge incinerators. Under the terms of the new contract, fueling this requirement with landfill gas, instead of natural gas, could save the District a total of $1.2 million dollars over five years, assuming an average natural gas average cost of $4.00 per decatherm. Under the present landfill gas agreement, the savings would be $600,000. The above savings do not reflect the current estimated cost of $50,000 - $80,000 per year in operation and maintenance costs associated with using landfill gas. RECOMMENDED BOARD ACTION: Authorize the General Manager to enter into the Landfill Gas Sales Agreement with MM Martinez Energy LLC to supply landfill gas for five years beginning August 1, 2000. 8/31/00 S: \Correspondence \POSPAPR \2000 \Landfillgas.JLB.wpd Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2000 No.: 7.a. HUMAN RESOURCES Type of Action: Human Resources subject: Delete vacant Maintenance Supervisor position (S -71, $4,822 to $5,834); and add Field Operations Superintendent position (S -77, $5,562 to $6,740) within the Collection System Operations Department; Transfer Associate Engineer position (S -77, $5,562 to $6,740) from the Collection System Operations Department to the Engineering Department. Submitted By: Initiating DeptJDiv.: John Larson, Director Collection System Operatior}ar-,, AND RECOMMENDED FOR BOARD ACTION. C. Freitas ISSUE: Board action is required to add and delete authorized positions. Charles W.l General Me RECOMMENDATION: Delete vacant Maintenance Supervisor position (S -71, $4,822 to $5,834); and add one Field Operations Superintendent position (S -77, $5,562 to $6,740) in the Collection System Operations Department; Transfer Associate Engineer position (S- 77, $5,562 to $6,740) from the Collection System Operations Department to the Engineering Department. FINANCIAL IMPACTS: The financial impact of this decision would be to increase the annual District O &M cost by $11,000 during this Fiscal Year and by $15,000 in future years. The departmental budgets for Collection System Operations and Engineering would change by the amount of the salary and benefits for the Associate Engineer position. ALTERNATIVES/CONSIDERATIONS: Accept, modify or reject the staff recommendation. BACKGROUND: C.S.O. has had a vacant Maintenance Supervisor position since April, 1999. The position was kept vacant to allow staff the opportunity to evaluate the staffing and structure of the Department. Additionally, Field Operations Superintendent Bob Mowers has recently been granted a disability retirement by the Contra Costa County Retirement Association. Consequently, staff is proposing changes in the organization of the Collection System Operations Department commensurate with filling the vacancies. Copies of the current organization chart and a chart showing the proposed changes are attached. The Field Operations Superintendent and the Associate Engineer have held the 8/31/00 C: \1WIP \fospp1.wpd Page 1 of 4 POSITION PAPER Board Meeting Date: September 7, 2000 subject: Delete vacant Maintenance Supervisor position (S -71, $4,822 to $5,834) and add Field Operations Superintendent position (S -77, $5,562 to $6,740) in the Collection System Operations Department; Transfer Associate Engineer position (S -77, $5,562 to $6,740) from the Collection System Operations Department to the Engineering Department. two major supervisory positions in the Department. Over time, it has become apparent that having an Associate Engineer in charge of the vehicle and equipment fleet, office support staff, and commercial grease enforcement program has not best utilized an Engineer's talents or training. Moreover, having the Field Operations Superintendent oversee a staff of thirty -two while the Associate Engineer has been in charge of six and one -half positions has been disproportionate and problematic. Therefore, staff is proposing to transfer the Associate Engineer position to the Engineering Department and upgrade the vacant Maintenance Supervisor position to another Field Operations Superintendent. This organizational change will allow the incumbent Associate Engineer, Mr. Tom Godsey, to work on the design and construction of collection system capital improvement projects. His experience with the operational problems at C.S.O. should be a valuable asset in the design of construction projects. The creation of another Field Operations Superintendent position will allow the workload to be more equitably distributed in the future, move the responsibility for work planning closer to the field operations and permit the superintendent to give more guidance in the field and vehicle shop as needed. An additional benefit to this re- organization will be the ability to cover absences: either of the two superintendents could direct the daily operations in the other's absence or to serve in the absence of the Department Director. Staff anticipates an improved level of coordination in staff support, work planning, and customer service. The Board Personnel Committee has been contacted about this proposal. RECOMMENDATION: Delete one vacant Maintenance Supervisor and add one Field Operations Superintendent position. 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' a @ -- - - - - - - 7 - iz o kE , ® #20 9 ! f k $ � ) 7 R ■ A LO §7 2> �� dw \ ) d ( ) ` f §�� E a* £_ ( 5 t I \o� 'o� �¢R \)§ ELD ■ s }( a r 2J$� _� . a$ J# @0d- % k \ �U) i k / ) a � § \] £ -�0 >C _ � £ - -u.. k ©� � ■�� £_ -2 0 }§ t 000 ;R SCE ® °�� Page 4 of 4 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2000 No.: 10.a. BUDGET AND FINANCE Type of Action: APPROVE INVESTMENT POLICY Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Submitted By: Debbie Ratcliff, Controller Initiating Dept. /Div.: Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION. D. Ratcliff ^nl"`_% P. Morsen� Thanes W. tsptts, General Manager ISSUE: The District's investment policy must be reviewed and approved annually bylthe Board of Directors in accordance with District Investment Policy and California Government Code Section 53646. RECOMMENDATION: Review, suggest any changes if appropriate, and approve the District's investment policy. FINAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: Additional investment options could be added which fall within the permissible investments prescribed by the Government Code of the State of California, although this is not recommended. BACKGROUND: In 1984, the California legislature amended Government Code Section 53646 to require that the treasurer or chief fiscal officer annually render to the legislative body of the local agency a statement of investment policy, and render a monthly report to the chief executive officer and legislative body of the local agency showing the type of investment, institution, date of maturity, amount of deposit, current market value for all securities with a maturity of more than 12 months, rate of interest, and such data as may be required by the local agency. Section 53646 remained in effect only until January 1, 1991, and as of that date was repealed. The California Legislature added a new Government Code Section 53646 via Senate Bill 564 as of January 1, 1996. The annual rendering of a statement of investment policy to the governing Board for review and approval as well as a monthly investment report has been continued since that time. These provisions were incorporated into our investment policy. 8/30/00 S:\ ADMIN \POSPAPER \INVESTMENT.POL.wpd Page 1 of 5 POSITION PAPER Board Meeting Date: September 7, 2000 Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY District Counsel and staff reviewed the 1999 legislative amendments, and found that none required a change to the District's Investment Policy. Therefore, there are no recommended changes to the investment policy this year. RECOMMENDED BOARD ACTION: Review, suggest any changes if appropriate, and approve the District's investment policy. SA ADMIMPOSPAPERUNVESTM ENT. POL.wpd Page 2 of 5 POSITION PAPER Board Meeting Date: September 7, 2000 Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY The investment policy of the Central Contra Costa Sanitary District is embodied in the following eleven sections: Statement of Objectives The temporary investment portfolio of the District will be managed to ensure that normal cash needs, as well as scheduled extraordinary cash needs can be met. Therefore, adequate liquidity will be the first priority. Second priority will be the safety of the portfolio ensuring that the investments could be readily converted to cash if needed without causing a material change in the value of the portfolio. Lastly, the portfolio will be invested to attain a market average rate of return, after meeting the first two previously stated objectives. II. Permissible 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: • United States Treasury Bills and Notes, and obligations of government agencies for which the full faith and credit of the United States are pledged. • Bankers Acceptances, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System. • Collateralized Certificates of Deposit issued by a Federal or State chartered bank or a Federal or State chartered savings and loan association. • Commercial Paper of prime quality limited to corporations with assets over $500,000,000. • Local Agency Investment Fund of the State of California. SA ADMIN \POSPAPER \INVESTMENT.POL.wpd Page 3 of 5 POSITION PAPER Board Meeting Date: September 7, 2000 Subject: REVIEW AND APPROVE THE STATEMENT OF 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 District's investments through such brokers, dealers and financial institutions as are approved by the County Treasurer, and through the State Treasurer's Office for investment in the Local Agency Investment Fund. IV. Maturities 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 percent of the District's investment portfolio value, except that the 15 percent limitation will not apply to United States Treasury Bills and Notes and investment in the Local Agency Investment Fund. VI. Risk Credit and market risks will be minimized through adherence to the list of permissible investments, a limit on maximum maturities, and the limitation on the total investment in a single issuer. VII. Delegation and Authority The District Controller 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. S:\ ADMIN \POSPAPERUNVESTMENT.POL.wpd Page 4 of 5 POSITION PAPER Board Meeting Date: September 7, 2000 Subject: REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY VIII. Prudence Prudent judgement must be exercised by the District Controller responsible for investment transactions undertaken in accordance with this investment policy. IX. Controls The District Controller will establish subsidiary accounting 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 ledger. Internal control procedures will require the countersignature of the Director of Administration for all transactions which are initiated by the Controller. The dollar limit of the Director of Administration will be $5 million. Investment transactions which exceed $5 million will require the additional approval of the General Manager. Such internal controls are to be reviewed by the District's independent auditors annually. X. Reporting The District Controller will annually render a statement of investment policy to the Board of Directors. The Controller will submit a monthly report to the District's General Manager, Board of Directors and internal auditor showing the type of investment, issuer, date of maturity, par (or face), dollar amount invested, current market value of all securities, and the source of this same valuation, and a statement of compliance of the portfolio with the investment policy. XI. Performance Evaluation A performance evaluation will be completed by the District's independent auditors every four years, commencing with the 1984 -1985 fiscal year, to determine whether the investment objective of achieving a market - average rate of return is being realized. In determining the market - average rate of return, the average return of three month U.S. Treasury Bills will be used. SA ADMINTOSPAPER \INVESTMENT.POL.wpd Page 5 of 5