HomeMy WebLinkAbout9/4/2003 AGENDA BACKUPCentral Contra Costa Sar,Aary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2003 No -: 4.a. CONSENT CALENDAR
Type of Action: DENY GRIEVANCE
subject: DENY GRIEVANCE OF UNION ON BEHALF OF RICARDO HERNANDEZ,
SENIOR ENGINEERING ASSISTANT, IN ACCORDANCE WITH ARBITRATOR'S
RECOMMENDATION
Submitted By: Cathryn Freitas, Human Initiating Dept /Div.: Administrative /Human
Resources Manager Resources
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
C. Freitas . Mu raves
Charles
General
ISSUE: In accordance with the grievance procedure in the current Memorandumvof
Understanding (M.O.U.) between the District and the Employees' Association, Public
Employees' Union, Local One, the Board of Directors may adopt, reject or modify the
recommendation of an appointed neutral third party (arbitrator) in grievance matters.
RECOMMENDATION: Adopt the arbitrator's recommendation to deny the grievance of
the Union on behalf of Senior Engineering Assistant Ricardo Hernandez.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: Reject or modify the arbitrator's
recommendation.
BACKGROUND: In August, 2002, the Union filed a grievance on behalf of Senior
Engineering Assistant Ricardo Hernandez alleging discrimination on the basis that he
was not promoted to a supervisory position. The grievance was filed five months after
the promotion in question. Department Director Ann Farrell and General Manager
Charles Batts denied the grievance at Steps Two and Three, respectively, based on the
requirement in the applicable M.O.U. that a grievance must be filed within fifteen
working days from when the employee knew or should have known of the occurrence
(Article III, Section 2.5. Step One).
Subsequently, the Board directed staff to obtain the services of an arbitrator for a Step
Four hearing. Mr. John Kagel, Esq., was selected from a list submitted by the State of
California Mediation and Conciliation Service to hear the grievance and provide an
advisory decision. The hearing took place on July 10, 2003. Mr. Kagel ruled that the
District had acted appropriately in denying the grievance based on the grievant's "failure
to bring the grievance in a timely manner" (pg. 64 of the transcript).
C: \My Documents \hernandez step four arb dec posppr.doc Page 1 of 2
POSITION PAPER
Board Meeting Date: September 4, 2003
subject. DENY GRIEVANCE OF UNION ON BEHALF OF RICARDO HERNANDEZ,
SENIOR ENGINEERING ASSISTANT, IN ACCORDANCE WITH THE
ARBITRATOR'S RECOMMENDATION
The Board may adopt, reject, or modify the recommendation of the arbitrator. If the
Board rejects or modifies the recommendation of the arbitrator and finds the grievance
to be timely, then the grievance would be returned to the arbitrator for a hearing of the
facts of the grievance and whether the grievance may be appropriately filed in relation
to the filling of a position that is not in the bargaining unit covered by the M.O.U. with
Local One. The decision of the Board is the final action of the District.
RECOMMENDED BOARD ACTION: Deny the grievance of the Union on behalf of
Ricardo Hernandez, Senior Engineering Assistant, in accordance with the arbitrator's
recommendation.
Page 2 of 2
CAMy Documents \hernandez step four arb dec posppr.doc
Board Report — September 4, 2003
Bill Echols & Gail Chesler
The RWQCB's Approach
to Regulating
Collection System Overflows
Some history of CSO /SSO actions locally
fur
* In California - Beach closures (prior several years)
EPA Region 9 - § 308 report required (southern CA)
California Regional Board 5 - Santa Ana w/ Orange C,
Beach closures - beneficial uses, economic benefit effects
Significant, lengthy discussion - workshops, BACWA testified
OCSD acting as lead in their GWDR, though not responsible
for all
Other California GWDR reviewed by SF Bay RWQCB
Folsom
San Diego
+F Region 2's initial draft - Orange Co with influence of
Folsom and San Diego
Region 2 wants to issue an SSO permit because
♦ SSOs are under - reported
® Other Regions have problems; we must have them, too
There may be budgeting (staffing) implications of having such a
program for the Region
1
History of RB staff with BACWA Permits
Controversy with Staff & BACWA Permits
. "GWDR in 2003"
General Waste Discharge Requirement
No identified Impairment of beneficial uses
No defined reason for the imposition of GWDR requirements
• Tour of CCCSD's Collection System
• However, "GWDR in 2003"
• Letter to Regional Board Executive Officer from
Jim Kelly, BACWA Chair
identify a real problem, clarify the goal.
Here's what we propose - reporting and workshops
• They liked the approach we proposed
Current activities by Regional Board staff and
new BACWA Committee
• Workplan - presently in draft
• Standardized reporting form - very like CCCSD's
• Define the necessary parts of a SSMP (Sewer System
Management Plan) - capacity, renovation, O&M, ...
• Workshops for Collection Systems operators (POTWs & cities)
• Regional Board Resolution that endorses our plan
October 1511 4 whereas & therefore
0 Next required step by them is reconsider within 3 years
What to expect
• CCCSD with others will conduct / lead workshops
• Increase focus on reporting (for others)
• Careful attention regarding "preventable" overflows
Increase analysis of data by staff regarding cleaning and
overflows
# An SSMP will be written (Engineering with CSO)
2
Remaining issues — nationwide & locally
• The issue of "affirmative defense" remains
Regional Board staff (and others) believe that all overflows are
'.. controllable
• Zero may be included as the acceptable number in ultimate
requirement
What did we gain / At what cost?
• We gained an opportunity to find the problems and come up
with a good solution
• The costs to provide good data for good decision making will
be shared by BACWA agencies
While there are no guarantees of a good result as the Regional
Board continues down this path, the result with which we now
work is about as good as it can get
Central Contra Costa Sanitary District
1 BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2003 No.: 7.a. ADMINISTRATIVE
Type of Action: AMEND CONFLICT OF INTEREST CODE
subject: ADOPT A RESOLUTION AMENDING EXHIBIT A, DESIGNATED POSITIONS
AND DISCLOSURE CATEGORIES OF THE DISTRICT CONFLICT OF INTEREST
CODE
Submitted ay: Joyce E. Murphy, Initiating Dept /Div.: Administrative
Secretary of the District
REVIEWED AND RECOMMENDED FOR BOARD ACTION.
J. Mur y K. Alm *General
ISSUE: A need exists to update Exhibit A, Designated Positions and Disclosure
Categories of the District's Conflict of Interest Code.
RECOMMENDATION: Adopt a resolution amending the List of Designated Positions of
the District Conflict of Interest Code to include the Safety and Risk Management
Administrator position.
FINANCIAL IMPACTS: None related to this action.
ALTERNATIVES /CONSIDERATIONS: Decline to add the Safety and Risk
Management position to the List of Designated Positions and assign the duties to a
different position.
BACKGROUND: The Political Reform Act of 1974 and the Central Contra Costa
Sanitary District Conflict of Interest Code require that the Board of Directors adopt a list
of designated positions of officers and employees who make, or participate in making,
decisions that could have a material effect on a personal financial interest. It has been
the practice of the District to review the designated positions on an annual basis and to
amend the District Conflict of Interest Code as necessitated by any changed
circumstances, including the creation of new positions, deletion of positions, and
relevant changes in the duties assigned to existing positions.
Exhibit A, Designated Positions and Disclosure Categories of the District Conflict of
Interest Code, was reviewed by staff and an amendment is proposed to reflect the
current organizational structure of the District. It is recommended that the newly
created position of Safety and Risk Management Administrator be added to the list of
designated positions. This change reflects the current organizational structure of the
District Safety and Risk Management Section, and the duties assigned to this position.
S:IADMIN\MURPHY\Conflict of Interest\position paper.doc Page 1 of 5
POSITION PAPER
Board Meeting Date: September 4, 2003
Subject: ADOPT A RESOLUTION AMENDING EXHIBIT A, DESIGNATED POSITIONS AND
DISCLOSURE CATEGORIES OF THE DISTRICT CONFLICT OF INTEREST CODE
The proposed change is reflected in Exhibit A, Designated Positions and Disclosure
Categories of the District Conflict of Interest Code, submitted for the Board's approval.
After approval by the Board, the proposed amendment to Exhibit A of the District
Conflict of Interest Code will be submitted to the Board of Supervisors, the code
reviewing body. The amendment takes effect upon its approval by the Board of
Supervisors.
RECOMMENDED BOARD ACTION: Adopt the attached resolution amending Exhibit
A, Designated Positions and Disclosure Categories of the Central Contra Costa
Sanitary District Conflict of Interest Code, and authorize the Secretary of the District to
submit a copy of the code amendment to the Contra Costa County Board of
Supervisors for approval.
Page 2 of 5
RESOLUTION NO. 2003-
A RESOLUTION AMENDING EXHIBIT A, DESIGNATED POSITIONS
AND DISCLOSURE CATEGORIES OF THE CENTRAL CONTRA COSTA SANITARY
DISTRICT CONFLICT OF INTEREST CODE
WHEREAS, Section 2.20.020 of the Central Contra Costa Sanitary District Code
provides that the Board of Directors shall from time to time establish by resolution
designated positions of officers and employees deemed to make, or participate in the
making of, decisions that may foreseeably have a material effect on a financial interest.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central
Contra Costa Sanitary District as follows:
THAT Exhibit A, Designated Positions and Disclosure Categories of the Central
Contra Costa Sanitary District Conflict of Interest Code, a copy of which is attached, is
hereby approved and adopted for the District, subject to approval by the Board of
Supervisors of the County of Contra Costa; and
THAT the Secretary of the District is hereby authorized and instructed to submit a
copy of such Code amendment to the Board of Supervisors of the County of Contra
Costa and to request the Board of Supervisors to approve said Code amendment in
accordance with Government Code Section 87303.
PASSED AND ADOPTED by the Central Contra Costa Sanitary District Board of
Directors this 4th day of September 2003, by the following vote:
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:
Kenton L. Alm
District Counsel
Page 3 of 5
"EXHIBIT X
DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES
OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
CONFLICT OF INTEREST CODE
Designated Positions
1.
Secretary of the District
2.
Counsel for the District
3.
Manager
4.
Consultant*
6. Senior Control Systems Engineer
7. Process Control Engineer
8. Principal Engineer
9. Senior Engineer
10. Management Information Systems Administrator
11. Principal Buyer
12. Senior Buyer
13. Buyer
14. Material Services Supervisor
15. Plant Operations Superintendent
16. Field Operations Superintendent
17. Plant Maintenance Superintendent
18. Laboratory Superintendent
19. Pumping Stations Superintendent
9/4/2003
Disclosure Categories
1,2,3,4,5,6,7,8
1,2,3,4,5,6,7,8
1,2,3,4,5,6,7,8
1.2.3.4.5.6.7.8
1,2,3,4,5,6,7,8
1,2,3,4,5,6,7,8
2,3,4,5,6,7,8
2,3,4,5,6,7,8
1,4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
4,5,6,7,8
The category of Consultants shall be included on the list of designated
employees and those Consultants who fall within the criteria enumerated below
shall disclose, pursuant to the broadest disclosure category in the Code, subject
to a determination by the General Manager, that a less broad category is
appropriate.
A particular Consultant shall be treated as a "designated position" to the extent
that the Consultant (i) is either delegated specified decision - making authority or
functions as an officer or employee of the District, and (ii) the duties of the
Consultant can foreseeably materially affect private economic interests through
the exercise of his or her duties for the District. The General Manager shall
make a determination in writing when a particular Consultant falls within the
above - described criteria requiring the Consultant to be treated as a "designated
position." The General Manager's determination is a public record and shall be
retained for public inspection in the same manner and location as the Conflict of
Interest Code.
Page 4 of 5
"EXHIBIT K (Continued)
Other Officials Who Manage Public Investments
In accordance with Government Code Section 97200, certain District officials are
required to disclose, upon assuming and leaving office, and annually while in office,
their investments, income, and interests in real property by way of Fair Political
Practices Commission (FPPC) Form 700, State of Economic Interests. Those positions
designated to file Form 700 are those "directing the investment of public monies,
formulating or approving investment policies, approving or establishing guidelines for
asset allocations, or approving investment transactions." It has been determined that
the positions listed below manage public investments and will file a Statement of
Economic Interests pursuant to Government Code Section 97200 (Form 700):
1. Member, Board of Directors
2. General Manager
3. Director of Administration
4. Director of Engineering
5. Controller
Category Index
1 Investments
2 Interests in Real Property
3 Interests in Real Property and Investments Held by Business Entitles or Trusts
4 Income (Other than Gifts and Loans)
5 Income (Loans)
6 Income (Gifts)
7 Business Positions
8. Commission Income, Income and Loans to Business Entities or Trusts, and
Income from Rental Property
Page 5 of 5
Central Contra Costa Sanitary District
. - BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2003 No.: 7. b. ADMINISTRATIVE
Type of Action: AUTHORIZE AWARD
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT WITH
PAPERTHIN, INC. FOR A WEBSITE CONTENT MANAGEMENT SYSTEM.
Submitted By: Initiating Dept. /Div.:
Mark Greenawalt, MIS Administrator Administration / Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION.
M. Greenawalt D. Rat ' A.-Ogner R uV ves arl s
General
ISSUE: Board authorization is required to execute a contract in excess of $50,000 with
PaperThin, Inc. for a Website Content Management System.
RECOMMENDATION: Authorize the General Manager to execute a contract with
PaperThin, Inc. ECS Imaging, Inc. to purchase and implement a Website Content
Management System for $60,000.
FINANCIAL IMPACTS: The purchase of a Content Management System was included
in the Capital Improvement Budget (CIB) under Information Technology. The total cost
of this contract is $60,000, which includes purchase and installation of software,
training, first year support and a 10% contingency reserve. Full project costs are
itemized in Attachment 1.
ALTERNATIVES /CONSIDERATIONS: Do nothing and continue with static information
approach currently being used that requires additional staff time as information
requirements increase; or hire outside consultants to perform advanced web services.
BACKGROUND: In an effort to share and disseminate information more efficiently and
effectively with both the public and within and between departments, District staff
developed and implemented an external website (www.centralsan.org) and an internal
website (OTIS:Online Total Information System). These websites were developed in-
house using minimal website software that makes it time - intensive to publish new
information and keep the information on the sites current. The use of the web has
greatly expanded the ability of the District to provide information to the public. With an
average of 6,000 visitors to the District's internet site each month looking at 15,000 to
20,000 website pages per month, it is clear that there is a growing demand to
S :\ADMIN \POSPAPER \PositionPaper- CMS - rev.doc Page 1 of 3
POSITION PAPER
Board Meeting Date: September 4, 2003
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT
WITH PAPERTHIN, INC. FOR A WEBSITE CONTENT MANAGEMENT SYSTEM.
effectively distribute more information about the District, its services and organization to
the public and employees in a timely manner. This effort requires constant updating in
areas such as construction news, employment opportunities, and meeting minutes and
agendas.
New Content Management System (CMS) software is now available that reduces the
time needed to build and maintain static web pages that are relevant to the District's
business needs and project workflow. CMS solutions provides automation and
streamlined development and management software for general web content and links
to other web - enabled applications. Currently the task of providing content for the
Districts internal and external websites sites is published and maintained by the
Communication Services Division. With a CMS approach, additional sections will also
be able to develop and submit content to meet the growing demand for information by
the public and our employees.
A Request for Quotations was issued in June 2003 for website software. District staff
reviewed more than twenty content management products and evaluated specific
proposals from eight different vendors. Costs for a CMS solution varied from $27,000 to
$148,000, depending on the features, ease of use, and customization potential. The
most cost - effective solution for the District's current and future needs for flexibility,
features, and customization potential was the CommonSpot product from PaperThin,
Inc.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a
contract with PaperThin, Inc., in an amount not to exceed $60,000, for the purchase
and implementation of a Website Content Management System.
Page 2 of 3
S:\ADMIN\POSPAPER\PositionPaper-CMS-rev.doc
ATTACHMENT 1
REQUESTED CONTRACT AUTHORIZATION
WEB SITE CONTENT MANAGEMENT SYSTEM
Contract with PaperThin, Inc
Software
45,000
Software licensing for two websites and first
year's support.
Services
7,500
Installation, training and consulting.
Travel
2,500
Airfare. Lodging, meals, etc., for
trainers /consultants.
Contingency
5,000
Contract Total
$60,000
Requested Contract Authorization Amount
S :\ADMIN \POSPAPER \PositionPaper- CMS - rev.doc Page 3 of 3
Central Contra Costa SanlLary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2003 No.: 8.a. ENGINEERING
Type of Action: AUTHORIZE SOLE SOURCE PURCHASE; ALLOCATE FUNDS
FROM THE SEWER CONSTRUCTION FUND
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE SOURCE
PURCHASE OF SIX CORNELL PUMPS, MOTORS, AND SPARE PARTS FOR THE
MORAGA AND ORINDA CROSSROADS PUMPING STATIONS FOR AN AMOUNT
NOT TO EXCEED $325,000
Submitted By:
Andrew Antkowiak, Associate
Engineer
Initiating Dept /Div.:
Engineering /Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
-4
A. Antkowiak
WS
W. Brennan
Q___
A. Farrell
General
ISSUE: Board of Directors approval is requested for the purchase of six pumps,
motors, and spare parts for an amount not to exceed $325,000.
RECOMMENDATION: 1) Exempt this purchase from public bidding requirements;
2) Authorize the General Manager to execute a purchase of six Cornell pumps, motors,
spare parts and 10% contingency for an amount not to exceed $325,000; 3) Allocate
funds from the sewer construction fund for this purchase.
FINANCIAL IMPACTS: A maximum of $325,000 will be spent for the purchase of six
pumps, motors, spare parts and contingency. As part of a Board authorized settlement
agreement with GSE, the general contractor for the Moraga and Orinda Crossroads
Pumping Stations Renovation Project (DP 5237), the District has agreed to pay GSE
$67,500 for the installation of the pumps. This will make the estimated total cost of this
installation $392,500. Staff will attempt to recover cost from Morris Pumps.
ALTERNATIVES /CONSIDERATIONS: Do not approve the purchase. This is not
recommended as the Morris Pumps installed as part of the Moraga and Orinda
Crossroads Pumping Stations Renovation Project (DP 5237) have not met the vibration
specifications and have already exhibited unacceptable wear and premature failures.
BACKGROUND: As part of the Moraga and Orinda Crossroads Pumping Stations
Renovation Project (DP 5237), six new pumps and motors were installed (three at each
pumping station). These pumps and motors were supplied by Morris Pumps. These
pumps have not met the specified vibration criteria (despite numerous modifications by
Morris Pumps).
C:\W1NDOWS\TEMP\658172_1. DOC
Page 1 of 3
POSITION PAPER
Board Meeting Date: September 4, 2003
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE SOURCE
PURCHASE OF SIX CORNELL PUMPS, MOTORS, AND SPARE PARTS FOR THE
MORAGA AND ORINDA CROSSROADS PUMPING STATIONS FOR AN AMOUNT
NOT TO EXCEED $325,000
At the December 5, 2002 Board meeting, the Board authorized the General Manager to
purchase two pumps and motors for the purpose of a field test for an amount not to
exceed $150,000 to verify their suitability for long term operation at the Moraga and
Orinda Crossroads Pumping Stations. Cornell Pumps provided a "loaner" test pump for
the cost of shipping. This pump has performed successfully at the Orinda Crossroads
Pumping Station.
Based upon the successful performance of Cornell at the Orinda Crossroads Pumping
Station, staff requests authorization to purchase three pumps, motors, and spare parts.
Pending successful performance of Cornell at the Moraga Pumping Station, staff
requests authorization to purchase three pumps, motors, and spare parts for that
pumping station.
Staff is strongly recommending a sole source purchase of the pumps from Cornell as
being both appropriate and necessary in order to meet the District's needs. This
recommendation is based on the substantial experience, testing and analysis which
have occurred concerning the existing application of the Morris pumps conducted by
District engineering staff and several groups of experts employed by the District. The
evaluation that has been ongoing for over a year indicates that the pump application in
both Orinda and Moraga is demanding in terms of both the space and performance
specifications. Of the various pump manufacturers contacted, only Cornell has
indicated an ability to meet the space configuration requirements, the high speed
design requirements and the proven ability to meet the performance specifications,
including the vibration specifications for this application. The only other pump
manufacturer that is expressed an interest in providing pumps for this application has
proposed a pump which is not a high speed pump and therefore would require further
modification to accommodate its installation and would increase the cost of the pump
replacement substantially. Cornell pump design and configuration being tested is
proprietary and hence can only be obtained through a sole source purchase from a
Cornell manufacturer's representative assigned to this area. Staff and District Counsel
have concluded that based on the substantial efforts undertaken to address the current
pump performance problems that it would clearly be in the best interest of the District to
enter into a sole source purchase of Cornell pumps and any attempt to publicly bid the
purchase of these pumps at this time would work in incongruity and be adverse to the
public interest.
Page 2 of 3
C: \WINDOWS \TEMP \658172 1. DOC
POSITION PAPER
Board Meeting Date: September 4, 2003
subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE SOURCE
PURCHASE OF SIX CORNELL PUMPS, MOTORS, AND SPARE PARTS FOR THE
MORAGA AND ORINDA CROSSROADS PUMPING STATIONS FOR AN AMOUNT
NOT TO EXCEED $325,000
Cornell has provided a recommended list of spare parts for each pumping station. Staff
will review this and purchase the appropriate parts.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a sole
source purchase of six Cornell pumps, motors, spare parts and contingency for the
Moraga and Orinda Crossroads Pumping Stations for an amount not to exceed
$325,000.
C: \WINDOWS \TEMP \658172 1.DOC Page 3 of 3
Central Contra Costa SaniLdry District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2003 No.: 11.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.
General
ISSUE: The District's investment policy must be reviewed and approved annually by
the 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.
FINANCIAL 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.
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.
S:\ADMIN\ POSPAPER\ ApprovelnvestPolicyOg- 04- 03.doc Page 1 of 5
POSITION PAPER
Board Meeting Date: September 4, 2003
subject REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY
District Counsel and staff reviewed the 2002 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.
Page 2 of 5
S:\ADMIN\POSPAPER\ApprovelnvestPolicyO9-04-03.doc
POSITION PAPER
Board Meeting Date: September 4, 2003
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.
III. Bank 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
S:\ ADMIN\ POSPAPER\ ApprovelnvestPolicy09- 04- 03.doc Page 3 of 5
POSITION PAPER
Board Meeting Date: September 4, 2003
subject. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY
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.
VIII. Prudence
Prudent judgement must be exercised by the District Controller responsible
for investment transactions undertaken in accordance with this investment
policy.
S:\ADMIN\ POSPAPER \ApproveinvestPolicy09- 04- 03.doc Page 4 of 5
POSITION PAPER
Board Meeting Date: September 4, 2003
subject. REVIEW AND APPROVE THE STATEMENT OF 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 transaction 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.
Page 5 of 5
S:\ADMIN\POSPAPER\ApprovelnvestPolicyO9-04-03.doc
Central Contra Costa Sank ciry District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2003 No.: 11.b. BUDGET AND FINANCE
Type of Action: ADOPT APPROPRIATIONS LIMITS
Subject: ADOPT A RESOLUTION ESTABLISHING THE 2003 -2004
APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION
Submitted By:
Debbie Ratcliff, Controller
Initiating Dept. /Div.:
Administrative /Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
D. Ratcl' Mu raves
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 $55,976,615 for the 2003 -2004 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.
FINANCIAL IMPACTS: None
ALTERNATIVES /CONSIDERATIONS: The appropriations limit could be calculated
using the California per capita personal income percentage change of 2.31 as opposed
to the local assessment roll due to local non - residential construction of 7.3 percent.
BACKGROUND: On August 7, 2003, 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 4, 2003 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
2002 -2003 appropriations limit. This approach allowed for a larger limit on the District's
proceeds of taxes.
S:\ADMIN\POSPAPER\Approp.pp.08-03.doc
Page 1 of 3
POSITION PAPER
Board Meeting Date: September 4, 2003
Subject. ADOPT A RESOLUTION ESTABLISHING THE 2003 -2004
APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION
The County Assessor has determined the nonresidential construction index for 2003-
2004 to be 7.3 percent. The California per capita personal income percentage change
is 2.31. The change in the local assessment roll of 7.3 percent is being used in the
calculation of 2003 -2004 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 $55,976,615 for the 2003 -2004 fiscal year.
Should the District receive its full share of taxes for fiscal year 2003 -2004, it is
estimated that the District would receive approximately $8,000,000. Interest on these
tax proceeds are estimated to be $53,300. Therefore, total tax proceeds plus interest is
$8,053,300 which is well within the appropriations limit set for the 2003 -2004 fiscal year.
RECOMMENDED BOARD ACTION: Adopt a resolution establishing the Sewer
Construction Fund appropriations limit in the amount of $55,976,615 for the 2003 -2004
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.
Page 2 of 3
S:\ADMIN\POSPAPER\Approp.pp.08-03.doc
RESOLUTION NO.
A RESOLUTION ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2003 -2004
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 2003 -2004 to be $55,976,615; 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 $55,976,615 for the fiscal year ending June 30, 2004, based
upon the selection of the change in the local assessment roll due to local nonresidential
construction.
PASSED AND ADOPTED this 4th day of September 2003, by the District Board
of the Central Contra Costa Sanitary District by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
President of the Board of Directors
Central Contra Costa Sanitary District
COUNTERSIGNED: County of Contra Costa, State of California
Secretary of Central Contra Costa
Sanitary District, County of Contra
Costa, State of California
Approved as to Form:
Kenton L. Alm
District Counsel
S:\ ADMIN \POSPAPER\Approp.pp.08- 03.doc Page 3 of 3