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HomeMy WebLinkAbout9/7/2006 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 NO.: 4.a. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION ACCEPTING PUBLIC SEWER IMPROVEMENTS AND AN OFFER OF DEDICATION FROM KENNETH K. NAZARI, TRE, WALNUT CREEK, JOB 5648 - PARCEL 2 Submitted By: Initiating Dept ✓Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: q u(&�o Ik - — a - M. Mullin y C. Swanson A. Farrell James M. K ly General Manager ISSUE: A resolution of the Board of Directors is required to accept public sewer improvements and offers of dedication, and to authorize staff to record documents. RECOMMENDATION: Adopt a resolution accepting public sewer improvements and an offer of dedication, and authorizing staff to record the document with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The Board of Directors regularly accepts easements and public sewer improvements by resolution. The recommended resolution will accept an easement that is required for a recent public sewer extension off Shuey Avenue serving multiple dwelling units in Walnut Creek (as shown on Attachment 1). Staff has reviewed the easement documents, inspected the public sewer improvements, and determined that they are in compliance with District standards. RECOMMENDED BOARD ACTION: Adopt a resolution accepting an offer of dedication (Job 5648 — Parcel 2) from Kenneth K. Nazari, accepting Job 5648 public sewer improvements and authorizing staff to record the document with the Contra Costa County Recorder. Page 1 of 2 N: \ENVRSEC \Position Papers \Mullin\2006 \5648 PP Nazori 9- 7- 06.doc AL UT R SN D m � D TCD MT DIABLO VD 0 "!77 LOCATION MAP N. T. S. 0 LEGEND: E) EXISTING SEWER N NEW SEWER EASEMENT AREA Central Contra Costa Attachment Sanitary District ACCEPTANCE OF Apf"i EASEMENT DEDICATIONS 1 d m MA, Q-j JOB 5648 - PARCEL 2 Page 2 OT Z Central (Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4.b. CONSENT CALENDAR Type of Action: ADOPT RESOLUTIONS subject: ADOPT RESOLUTIONS ACCEPTING PUBLIC SEWER IMPROVEMENTS AND OFFERS OF DEDICATION, REJECTING PREVIOUS OFFERS OF DEDICATION FROM LAFAYETTE -KING DRIVE ASSOCIATION AND BARTON W. BENNETT AND SHIRLEY BENNETT IN THE WALNUT CREEK AREA, JOB 5673 - PARCELS 1, 2, AND 3 Submitted By: Initiating Dept. /Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: M. Mullin M. C. Swanson A. Farrell James J . Kelly General Manager ISSUE: A resolution of the Board of Directors is required to accept or reject offers of dedication and public sewer improvements, and to authorize staff to record documents. RECOMMENDATION: Adopt resolutions accepting public sewer improvements and offers of dedication, rejecting two previous offers of dedication, and authorizing staff to record the documents with the Contra Costa County Recorder. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS,: None. BACKGROUND: The Board of Directors regularly accepts easements and public sewer improvements by resolution. The recommended resolutions will accept easements that are required for a recent public sewer extension off King Drive in the Walnut Creek area (as shown on Attachment 1). The documents requiring approval are the Irrevocable Offers of Dedication (IOD's) for Parcel 1 (Series 2003 - 0498951), Parcel 2 (Series 2004 - 0466901), and Parcel 3 (Series 2004 - 0466902). Staff has reviewed the easement documents, inspected the public sewer improvements, and determined that they are in compliance with District standards. Changes in sewer alignment during construction rendered the first IODs prepared for Parcels 2 and 3, recorded September 25, 2003, obsolete. The obsolete IOD's should be rejected, as they are not needed. RECOMMENDED BOARD ACTION: Adopt a resolution accepting offers of dedication from Lafayette -King Drive Associates for the easements offered in the IOD recorded October 6, 2003 and recorded December 6, 2004, and accept Job 5673 public sewer improvements. Adopt a resolution accepting an offer of dedication and public sewer N: \ENVRSEC \Position Papers \Mullin\2006 \5673 PP Bennett 9- 7- 06.doc Page 1 of 3 POSITION PAPER Board Meeting Date: September 7, 2006 Subject. ADOPT RESOLUTIONS ACCEPTING PUBLIC SEWER IMPROVEMENTS AND OFFERS OF DEDICATION, REJECTING PREVIOUS OFFERS OF DEDICATION FROM LAFAYETTE -KING DRIVE ASSOCIATION AND BARTON W. BENNETT AND SHIRLEY BENNETT IN THE WALNUT CREEK AREA, JOB 5673 - PARCELS 1, 2, AND 3 improvements from Barton W. Bennett and Shirley Bennett for the easement offered in the IOD recorded December 6, 2004. Adopt a resolution rejecting two offers of dedication recorded September 25, 2003. Authorize staff to record the documents with the Contra Costa County Recorder. Page 2 of 3 N:\ENVRSEMPosition Papers \Mullin\2006 \5673 PP Bennett 9- 7- 06.doc a v j T v E E OL yMP 7 � LUD I WALNUT CREEK I Ap I � I SITE I I L CATI MAP EL I DORADO I —_ I i - J LEGEND: —) NEW S ER --a— EXISTIN SEWER Central Contra Costa Sanitary District KING EXISTING RESERVES PARCEL 1-� LAFAYETTE KING DR ASSN 238-012-002 O ----� N N 0 N ,00 FEET - ACCEPT NEW 15' EASEMENTS PARCEL 2f PARCEL 3 LAFAYETTE KING DR ASSOC. BENNETT 238-012 -023 189 -011 -033 Mo Attachment ACCEPT /REJECT OFFERS FOR EASEMENTS JOB 5673 - PARCELS 7, 2, 3 � Page 3 of 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4,o, CONSENT CALENDAR Type of Action: ADOPT RESOLUTION subject: ADOPT A RESOLUTION ACCEPTING A GRANT OF EASEMENT FROM MAUREEN KYER (DISTRICT PROJECT 420 - PARCEL 1) Submitted By: Initiating Dept./Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: O Ar V ok�l' M. Mullin y . Swanson A. Farrell V James M. Kelly General Manager ISSUE: A resolution of the Board of Directors is required to accept and record Grants of Easement. RECOMMENDATION: Adopt a resolution accepting a Grant of Easement, and authorize recording of the easement deed with the Contra Costa County Recorder. FINANCIAL IMPACTS: $2,600 was paid for the easement. ALTERNATIVES/CONSIDERATIONS: None. BACKGROUND: This property was subject to a plug call in June 2005. Staff discovered that no easement existed for the pipeline installed under District Project 420. Maureen Kyer at 30 Karol Lane, Pleasant Hill cooperated with the District and granted a five -foot wide exclusive subsurface and non - exclusive surface easement on July 28, 2006. RECOMMENDED BOARD ACTION: Adopt a resolution accepting a Grant of Easement from Maureen Kyer, and authorizing staff to record the easement with the Contra Costa County Recorder. Page 1 of 2 N: \ENVRSEC \Position Papers \Mullin\2006 \420 PP Kyer 9- 7- 06.doc Page 2 of 2 KELSEY CT r $ D SITE 680 > D PLEASANT z HILL GM V LO TION MAP = N. T. S. r r KYER I 149 -181 -049 I AC EPT N 5' EAS MENT I O I I KAROL LN / di i i o / P / � N E LEGEND: ° -- NEW SEWER / —Q-- EXISTING S ER % 0 e0 FEET Y Central Contra Costa Attachment Sanitary District a ACCEPTANCE OF GRANT EASEMENT DP 420 — PARCEL 1 1 Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 NO.: 4.d. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION ACCEPTING A GRANT OF EASEMENT FROM MICHAEL G. LUCAS AND CATHERINE M. LUCAS (DISTRICT PROJECT 5919 - PARCEL 16) Submitted By: Initiating Dept /Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACT ON: M.M. Mullin M. y C. Swanson A. Farrell James M elly General Manager ISSUE: A resolution of the Board of Directors is required to accept and record Grants of Easement. RECOMMENDATION: Adopt a resolution accepting a Grant of Easement and authorizing staff to record the easement deed with the Contra Costa County Recorder. FINANCIAL IMPACTS: $5,800 was plaid for the easement. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: Under the Alhambra Valley Trunk Sewer Project, the District will install 6,500 feet of 10 and 12 -inch gravity sewer to serve more than 300 properties. A portion of the trunk sewer route is along Strentzel Lane. Depending on the location, Strentzel Lane is either a public or private street. The proposed easement is along a section of Strentzel Lane that is privately owned (see attached map). Research by District staff and a right -of -way consultant concluded that ownership of the private street was unclear. Because of the clouded title to the private street, the Board of Directors authorized the acquisition of an easement by eminent domain on November 17, 20Q5. As a result of negotiations pursuant to the eminent domain process, property ownership has been resolved and the rightful owner has agreed to convey a Grant of Easement to the District. RECOMMENDED BOARD ACTION: Adopt a resolution accepting a Grant of Easement from Michael G. Lucas and Catherine M. Lucas, and authorizing staff to record the easement with the Contra Costa County Recorder. Page 1 of 2 N: \ENVRSEC \Position Papers \Mullin\2006 \5919 PP GOE Lucas 9- 7- 06.doc Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4.e. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION subject: ADOPT RESOLUTIONS ACCEPTING A GRANT OF EASEMENT (DISTRICT PROJECT 5646 — PARCEL 1), AUTHORIZING EXECUTION OF A QUITCLAIM DEED TO THE MANIS TRUST, AS CREATED BY THE ARMEN H. AND BETTY RUTH MANIS TRUST AGREEEMENT (3141 DIABLO VIEW ROAD, LAFAYETTE, DISTRICT PROJECT 1593 — PARCEL 8 (PORTION)) Submitted By: Initiating Dept /Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 1* , l M. Mullin M. Swanson A. Farrell James . elly General Manager ISSUE: A resolution of the Board of Directors is required to accept or quitclaim easements and record documents. RECOMMENDATION: Adopt resolutions accepting a Grant of Easement, authorizing execution of a Quitclaim Deed, and recording of the documents. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: A nominal fee of $500 was paid to the property owners. BACKGROUND: Armen and Betty Manis at 3141 Diablo View Road, Lafayette, cooperated with the District to change the alignment of the public sewer on their property when it was replaced under District Project 5646 Vessing Road Sewer Renovations. This change is reflected in Attachment 1. Excepting the most southerly 50 -foot portion, the original sewer has been abandoned, and an easement has been granted for the new sewer. RECOMMENDED BOARD ACTION: Adopt resolutions and accept a Grant of Easement, authorizing the President of the Board of Directors and the Secretary of the District to execute a Quitclaim Deed to The Manis Trust, on behalf of the District; and recording of the documents with the Contra Costa County Recorder. Page 1 of 2 W \ENVRSEC \Position Papers \Mullin\2006 \5646 PP Manis 9- 7- 06.doc Page 2 of 2 Central'Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4.f. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION subject: ADOPT RESOLUTIONS ACCEPTING A GRANT OF EASEMENT (DISTRICT PROJECT 5646 — PARCEL 11) AND,AUTHORIZING EXECUTION OF A QUITCLAIM DEED TO RICHARD D. DAVIS AND STEPHANIE P. DAVIS (2125 HOOVER CT, PLEASANT HILL, DISTRICT PROJECT 1551 — PARCEL 44 (PORTION) AND DISTRICT PROJECT 933 — PARCEL 1 (PORTION)) Submitted By: Initiating Dept /Div.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: \ �k V• M. Mullin nA, M. Penny C. Swanson James M. Ily General Manager ISSUE: A resolution of the Board of Directors is required to accept or quitclaim easements and record documents. RECOMMENDATION: Adopt resolutions accepting a Grant of Easement, and authorizing execution of a Quitclaim Deed and recording of the documents. FINANCIAL IMPACTS: $1,000 easement acquisition cost. ALTERNATIVES /CONSIDERATIONS,: None BACKGROUND: Richard and Stephanie Davis at 2125 Hoover Court, Pleasant Hill, cooperated with the District to change the alignment of the public sewer on their property when it was replaced under District Project 5646, Vessing Road Sewer Improvements. This change is reflected in Attachment 1. The original sewer has been abandoned, and an easement has been granted for the new sewer. RECOMMENDED BOARD ACTION: Adopt resolutions accepting a Grant of Easement, authorizing the President of the Board of Directors and the Secretary of the District to execute a Quitclaim Deed to The Davis Trust, on behalf of the District; and recording of the documents with the Contra Costa County Recorder. Page 1 of 2 N: \ENVRSEC \Position Papers \Mullin\2006 \5646 - 1551 - 993 PP Quitclaim Davis 9- 7- 06.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4.g. CONSENT CALENDAR Type of Action: ADOPT RESOLUTION subject: ADOPT RESOLUTIONS ACCEPTING A GRANT OF EASEMENT (DISTRICT PROJECT 5646 — PARCEL 10) AND AUTHORIZING EXECUTION OF A QUITCLAIM DEED TO WILLIAM F. MAXFIELD AND BARBARA L. MAXFIELD (2121 HOOVER CT, PLEASANT HILL, DISTRICT PROJECT 1551 — PARCEL 44 (PORTION) AND DISTRICT PROJECT 933 — PARCEL 1 .(PORTION)) Submitted By: Initiating DeptJDiv.: Molly Mullin, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: au-d� 2-4— a�5 NAL l M. Mullin j\, Penny C. Swanson A. Farrell James M. elly W^ M. General Manager ISSUE: A resolution of the Board of Directors is required to accept or quitclaim easements and record documents. RECOMMENDATION: Adopt resolutions accepting a Grant of Easement, and authorizing execution of a Quitclaim Deed and recording of the documents. FINANCIAL IMPACTS: $1,000 easement acquisition cost. ALTERNATIVES /CONSIDERATIONS: None BACKGROUND: William and Barbara Maxfield at 2121 Hoover Court, Pleasant Hill, cooperated with the District to change the alignment of the public sewer on their property when it was replaced under District Project 5646, Vessing Road Sewer Improvements. This change is reflected in Attachment 1. The original sewer has been abandoned, and an easement has been granted for the new sewer. RECOMMENDED BOARD ACTION: Adopt resolutions accepting a Grant of Easement, authorizing the President of the Board of Directors and the Secretary of the District to execute a Quitclaim Deed on behalf of the District; and authorizing staff to record the documents with the Contra Costa County Recorder. Page 1 of 2 N: \ENVRSEC \Position Papers \Mullin\2006 \5646 PP Quitclaim Maxfield 9- 7- 06.doc Page 2 of 2 Rm RD O = CJ PLEASANT HILL � 0�SITE N can ao LOCAT N MAP , I I I DP 933 � / / QUITO DAVIS EX. EMENT 170- 150 -068 / / PARCEL 11 I V ACCEPT / NEW 10' EASEMENT / / DP 1551 MAXFIELD 55 / 170- 150 -067 / PARCEL 10 / 1 I I I j I p o I I 2 a ' I N I E LEGEND: I C, --�— NEW SEWER a ao eo — a— EXISTING SEWER n FEET Y Central Contra Costa Sanitary District ACCEPT DP 5646 — PARCEL 10 Attachment a o QUITCLAIM DP 1551 — PARCEL 44 (PORTION) Cd ' 1 QUITCLAIM DP 933 — PARCEL 1 (PORTION) � Page 2 of 2 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4.h. CONSENT CALENDAR Type of Action: AUTHORIZE VEHICLE PURCHASE subject: AUTHORIZE REPLACEMENT OF DAMAGED VEHICLE UNDER CURRENT 2006 -2007 EQUIPMENT BUDGET AND SELF - INSURANCE BUDGET Submitted By: Initiating Dept. /Div.: Donald R. Rhoads Operations/ Field Operations Superintendent Collection System Operations Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Rhoads . Brennan �4+A' James M. Velly, General Manager ISSUE: Board approval is needed to make purchases greater than $5,000 not specified in the approved Equipment Budget for FY 2006/2007. RECOMMENDATION: Authorize purchase of a vehicle to replace one recently damaged in an accident using Equipment Budget and Self- Insurance Budget accounts. FINANCIAL IMPACTS: The vehicle will cost approximately $23,000. Our Self - Insurance Budget account would pay $2,400, which represents the median Blue Book value of the vehicle, and the balance of $20,600 would come from the Equipment Budget account. Since staff is requesting already - allocated Equipment Budget funds, this potentially could result in over - spending the budget for Fiscal Year 2006 -2007. ALTERNATIVES /CONSIDERATIONS: Do not authorize approval; do not purchase a replacement vehicle. BACKGROUND: Unit #173, a 1996 Ford Taurus sedan with approximately 54,000 miles, was recently involved in a non - injury, non - driver fault vehicle accident. The extent of the damage was severe, with an estimated cost to repair of $10,000. The vehicle is needed by our Engineering division in order to inspect the work of contractors on District projects. There are no surplus vehicles available in the fleet and a long -term lease would be more expensive than purchase. In addition, this vehicle was already scheduled to be replaced in 2008. RECOMMENDED BOARD ACTION: Authorize purchase of a replacement vehicle using Equipment Budget and Self- Insurance Budget accounts. CAPpapeAreplacement vehicles0906.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4J. CONSENT CALENDAR Type of Action: HUMAN RESOURCES subject: AUTHORIZE MEDICAL LEAVE OF ABSENCE WITHOUT PAY FOR STEVE CAVIN, HOUSEHOLD HAZARDOUS WASTE TECHNICIAN II, THROUGH SEPTEMBER 15, 2006 Submitted By: Initiating Dept✓Div.: Ann E. Farrell, Director of Engineering Engineering /Environmental Services Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: 11 C. Freitas — 9 ames M. K Ily eneral Manager ISSUE: The Board of Directors' authorization is required for leave without pay in excess of 30 days. RECOMMENDATION: Authorize medical leave of absence without pay for Steve Cavin, Household Hazardous Waste Technician II. FINANCIAL IMPACTS: Minimal. ALTERNATIVES /CONSIDERATIONS: Not approve the medical leave of absence without pay. BACKGROUND: Steve Cavin, Household Hazardous Waste Technician II, was off work since May 6, 2006 due to a medical condition. Mr. Cavin applied for, was granted, and used 12 weeks of Family and Medical Leave. Mr. Cavin returned to work for two days, August 1 and 2, 2006, and has been off work since August 3, 2006. He has requested an extended leave of absence without pay through September 15, 2006 due to an on -going medical condition. Since this request exceeds the 30 working days that the Department Director and General Manager may approve, Board of Directors authorization is required. RECOMMENDED BOARD ACTION: Authorize medical leave of absence without pay for Steve Cavin, Household Hazardous Waste Technician II, through September 15, 2006. N: \ENVRSEC \Position Papers \Farrell \Gavin LOA 9- 7- 06.DOC Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 4.i. CONSENT CALENDAR Type of Action: Human Resources Subject: AUTHORIZE MEDICAL LEAVE OF ABSENCE WITHOUT PAY FOR HARRY WYLES, BUILDINGS AND GROUNDS SUPERVISOR, THROUGH NOVEMBER 1, 2006 Submitted By: Douglas J. Craig, Initiating DeptdDiv.: Operations/ Provisional Director of Plant Operations Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: Craig C. Freitas mes M. Ke , general Manager ISSUE: Board of Directors' authorization is required for a medical leave of absence without pay in excess of 30 days. RECOMMENDATION: Authorize medical leave of absence without pay for Harry Wyles, Buildings and Grounds Supervisor. FINANCIAL IMPACTS: Minimal ALTERNATIVES /CONSIDERATIONS: Deny medical leave of absence without pay. BACKGROUND: Harry Wyles, Buildings and Grounds Supervisor, has been off of work since June 8, 2006, due to a medical condition. Mr. Wyles applied for, was granted, and used 12 weeks of Family Medical Leave. We request authorization of Mr. Wyles' medical leave of absence without pay until November 1, 2006. Mr. Wyles' status will be reviewed at that time, and further Board action will be requested if appropriate. RECOMMENDED BOARD ACTION: Authorize medical leave of absence without pay for Harry Wyles, Buildings and Grounds Supervisor, through November 1, 2006. N: \POSUP \Correspondence \Position Papers\2006\wyles Leave of Absence.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 6.a. BIDS AND AWARDS Type of Action: AWARD CONSTRUCTION CONTRACT /AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH HILLSIDE DRILLING, INC., THE LOWEST RESPONSIVE BIDDER, FOR THE LOWER ORINDA ACCESS ROAD STABILIZATION PROJECT, DISTRICT PROJECT NO. 5944 Submitted By: Initiating Dept /Div.: Alexandr Mestetsky, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: A. Mesta t ky A. Antkowiak T. ecki A. Farrell James <elly, General Manager ISSUE: On August 22, 2006, six (6) sealed bids were received and opened for the construction of the Lower Orinda Access Road Stabilization Project, District Project No. 5944. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. RECOMMENDATION: Award a construction contract and authorize the General Manager to execute the Contract Documents. FINANCIAL IMPACTS: Approximately $122,000, including design, bid price, contingency, and construction management. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: The heavy rains during the later part of 2005 resulted in erosion of a creek bank immediately adjacent to an existing backside access road to the Lower Orinda Pumping Station. The backside road is used to access the back of the Pumping Station for delivery of diesel fuel and other materials. To avoid further erosion during the upcoming wet weather season, and potentially losing access to the back of the pumping station, the creek bank needs to be repaired. This project will repair the creek bank by installation of a drilled pier wall with a grade beam. District staff and DCM Engineering prepared the plans and specifications for the project. The original $50,000 Engineer's estimate for construction of the Lower Orinda Access Road Stabilization Project was increased to $60,000 by DCM Engineering to reflect the current bid climate. This project was advertised on August 1 and 8, 2006. Six (6) sealed bids ranging from $62,369 to $110,472 were received and publicly N: \PESlJP \Cbradley \Position Papers\2006 \September \5944 - Award -Lower Orinda Access Road.doc Page 1 of 5 POSITION PAPER Board Meeting Date: September 7, 2006 subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH HILLSIDE DRILLING, INC., THE LOWEST RESPONSIVE BIDDER, FOR THE LOWER ORINDA ACCESS ROAD STABILIZATION PROJECT, DISTRICT PROJECT NO. 5944 opened on August 22, 2006. The Engineering Department conducted a technical and commercial review of the bids and determined that Hillside Drilling, Inc. is the lowest responsive bidder with a bid amount of $62,369. A summary of bids received is shown in Attachment 2. The District will administer the construction contract and will provide contract administration, inspection, survey, office engineering, and submittal review. The additional allocation of funds required to complete this project, as shown in Attachment 3, is $72,000. The total cost of the Lower Orinda Access Road Stabilization Project is anticipated to be $122,000. This project is a component of the Lower Orinda Pumping Station Renovation, Phase 2, project, and is included in the fiscal year 2006 -2007 Capital Improvement Budget (CIB) on pages CS -91 and 92. Staff has conducted a cash -flow analysis of the Collection System Program authorization and concluded that adequate funds are available for this project. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15301, since it involves the repair of an existing facility with no expansion of use. Approval of this project will establish the Board of Directors' independent finding that the project is exempt from CEQA. RECOMMENDED BOARD ACTION: Award a construction contract in the amount of $62,369 for the construction of the Lower Orinda Access Road Stabilization Project, District Project No. 5944, to Hillside Drilling, Inc., the lowest responsive bidder, and authorize the General Manager to execute the Contract Documents. WPESUP\Cbradley \Position Papers\2006 \September\5944 - Award -Lower Orinda Access Road.doc Page 2 of 5 Central Contra Costa Drawing No. Sanitary Distriat LOWER ORINDA PUMPING STATION RENOVATION PROJECT, DP 5944 PROJECT LOCATION Page 3 of 5 ATTACHMENT 2 LOWER ORINDA ACCESS ROAD STABILIZATION PROJECT DISTRICT PROJECT NO. 5944 SUMMARY OF BIDS PROJECT NO. DP 5944 DATE: AUGUST 22, 2006 PROJECT NAME: LOWER ORINDA ACCESS ROAD STABILIZATION PROJECT LOCATION: ORINDA, CALIFORNIA ENGINEER EST.: $60,000 No BIDDER BID PRICE Name & address 1 Hillside Drilling, Inc. $62,369 539 South 11 Street Richmond, CA 94804 510- 234 -6532 2 Drill Tech, Inc. $69,484 2200 Wymore Way Antioch, CA 94509 925 - 978 -2060 3 American Civil Constructors West Coast $79,711 3701 Mallard Drive Benicia, CA 94510 707 - 746 -8028 4 Templeton Engineering Contractors $82,000 1145 Malvasia Court Templeton, CA 93465 805 - 434 -0216 5 Northwest Demolition, Inc. $99,000 719-38 1h Avenue, Suite 1 San Francisco, CA 94121 415- 902 -5050 6 E. E. Gilbert Construction $110,472 155 Howe Road Martinez, CA 94553 925 - 228 -0317 BIDS OPENED BY /s/ Elaine Boehme DATE August 22, 2006 SHEET NO. 1 OF 1 WPESUMbradley \Position Papers\2006 \September \5944 - Award -Lower Orinda Access Road.doc Page 4 of 5 ATTACHMENT 3 LOWER ORINDA ACCESS ROAD STABILIZATION PROJECT DISTRICT PROJECT NO. 5944 POST -BID / PRECONSTRUCTION ESTIMATE No. Item Description 1 CONSTRUCTION a. Construction Contract b. Contingency at 25% c. Permits TOTAL CONSTRUCTION 2 CONSTRUCTION MANAGEMENT a. District Forces - Construction Management and Inspection - Survey - Record Drawings SUBTOTAL b. Consultant/ Construction Support Services - Materials Testing - Geotechnical SUBTOTAL TOTAL CONSTRUCTION MANAGEMENT 3 TOTAL CONSTRUCTION PHASE COST 4 TOTAL PREBID EXPENDITURES 5 TOTAL DESIGN AND CONSTRUCTION MANAGEMENT COST 6 TOTAL ESTIMATED PROJECT COST 7 FUNDS AUTHORIZED TO DATE (*) 8 ALLOCATION NEEDED TO COMPLETE PROJECT (*)This is portion of allocation for the Lower Orinda Pumping Station Renovation - Phase 2 project Percent of Estimated Amount Construction Cost 62,369 15,631 5,000 83,000 10,000 2,000 1,000 13,000 1,000 5,000 6,000 19,000 102,000 20,000 39,000 122,000 IN N: \PESUP \Cbradley \Position Papers\2006 \September \5944 - Award -Lower Orinda Access Road.doc Page 5 of 5 100%1 16%1 7% 23% 123% 24% 47% 147% 7 , q , I Item 7.a.1 E_as a ehaSp Ag e t'with. u is Swans e er.. 0 11 • • • • • (1 �� • i s ager to ® • • • "• "10 n "overburden ", o e i i r ad easement Additional ro . ,� e s n ( 'tend widt rft 24- ..feet 3 f -foo unde t or er d sewer p' 4. ocate C ` ecess 6a, on CONCO pr y l 5. Total value f \ 'ents , r MEW _• • • ••: 2 r ee Title to Outplal - $118,895 estrictions to F r E ement - • am me • flue a i se , • sh - • Total a ue - ( 312 „l 7.a.2) Collection Systems 2006 Infrastructure Stewardship: Partnering for a Sustainable Future A Water Environment Federation Conference August 6 - 9, 2006, Detroit Report by Bill Brennan CSO Division Manager National Concerns ➢ Capacity, Management, Operations and Maintenance (CMOM) • Has been on hold • EPA reopening discussion to issue CMOM regulations ➢ Equivalent to what the San Francisco Regional Board — and now the State Water Resources Control Board — is now requiring ➢ EPA using consent decrees to force improvements of collection systems I Regional Concerns ➢ Because of the conference location, most concerns were with issues in the Midwest/ Great Lakes region — seeking Federal funding Some have Combined Sewer Systems — limiting overflows and treatment of Combined Sewer Overflows (CSOs) Regional Concerns ➢ Major construction and operation of tunnels as sewage holding basins and to hold storm water flows ➢Operation of combined sewers during rain events to minimize CSOs and treatment of CSOs 2 Regional Concerns ➢ Sanitary Sewer Systems — identification and elimination of infiltration and inflow • Common to have Sanitary Sewer System Overflows during rain events • Reduction of 1/1 by renovation projects, lateral renovation, roof leader disconnects ➢ System renewal and the use of asset management, typically with Geographical Information Systems (GIS), has just begun Comparisons to CCCSD ➢ Already function in a CMOM environment with the Sewer System Management Plan ➢ Concerned with and reporting all overflows ➢ Capital program eliminated last rain - caused overflow (Price Lane in Pleasant Hill) with Pleasant Hill Phase IV project ➢ GDI system is in place as our GIS 3 Comparisons to CCCSD ➢ Using modeling, Collection System Planning has identified future capacity problems; projects are prioritized in the capital plan ➢ Inspecting the entire sewer system using closed circuit N ➢ Fix the worst first — practical equivalent of asset management ➢ On a nationwide basis, we are meeting or exceeding trends elsewhere 4 T0,S) Central Contra Costa Sanitary District August 31, 2006 TO: BOARD OF DIRECTORS VIA: JAMES M. KELLY, GENERAL MANAGER �'�G'— 0 FROM: RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION JAS SUBJECT: REVIEW OF DISTRICT'S SELF INSURED RETENTION (SIR) At a previous Board meeting, staff was asked by Board Member Lucey to review the impacts to the District of a $1,000,000 self insured retention (SIR) versus the current $500,000 SIR. The attached information will be presented and discussed at the September 7, 2006 Board meeting. I have provided the information in advance to allow you the opportunity to review the information. If you have questions that you would like to ask prior to the Board meeting, please feel free to contact me at (925) 229 -7305. will also provide comments made during the Suzanne Brown mediation in an effort to assist the Board in their review of this matter. /em iR U) z O P 2 w � w � O w D U) z LL -i w U) a U) U Q Q U. O 2 > w w ■ 0 v § r 2 o • t ■ k� o o .0 cc 40 £ § 7 t � � k W) a C C" 0 0 � _ 0 0 ■ cm � a 7 c ¢ ■ C £ d d c c cc � � 0 0 0 cq 0 0 m co CL § o � � o C o W f LO w 40 ■ / 2 0 � t4 ��� � k / ■ > 0 § k § 2 O CU ■ / o k � k U 0 a c Q c a 0 > V k q w u 2 — z k U) 2 0 cu . cn o m 2 ® E cc & / 2 V a ■ c ° > ■ c Q > k o CD 2 2 § CL § I t o m ® E w q 2 # ■ q � L) J Q m ■ r o • t ■ o o .0 cc 40 £ 'E 7 � 2 k � @ ■ u 0 ¢ v £ c e co V LA CL § f f ■ @ ■ 0 ■ / 2 0 ° 0 k / ■ > 0 § k _ 2 CU ■ c o k k 0 o © c a � k 2 V q w u 2 k z U) cn SELF INSURED RETENTION (SIR) COMPARISON East Bay Municipal Utility District Orange County Sanitation District $10,000,000 $250,000 Union Sanitary District $500,000 Vallejo Sanitation and Flood Control District $500,000 Delta Diablo Sanitation District $100,000 Oro Loma Sanitary District $250,000 Most of the 40 members ( small) $10,000 - $25,000 7.a.4)c) Contra Costa LAFCO Water / Wastewater Municipal Service Review Wastewater Service Data Request As requested, the following information is provided for Central Contra Costa Sanitary District: ✓ Sewer System Management Plan (SSMP) ✓ Rehabilitation and Replacement Program ✓ List of reported SSOs and SSO Response Plan ✓ Wastewater Collection System Master Plan ✓ Capital Improvement Plan ✓ Wastewater Connection and Service Rates — 3 year history ✓ Copy of Organizational Chart ✓ Adopted 2006 -2007 Budget (including detail) ✓ Audited Financial Statement (or CAFR) for 2005 -2006 (not available yet, expected to be completed in late 2006; as a/ /owed, a copy will be provided when ready) ✓ Audited Financial Statement (or CAFR) for 2004 -2005 ✓ Special Districts Only: list of directors, term expirations, compensation and benefits ✓ Completed Supplemental Questionnaire ✓ Maps indicating existing Service Areas (a color Service Area map for wastewater collection /treatment and Household Hazardous Waste collection provided; an 8.51 M8 file containing detailed agency boundary maps in PDF forma4 up to and including District Annexation 164, is available and can be downloaded at httn://www. centra/san org images /CCCSD %ZOBoundary %20Maps pol] Also provided, in response to Question 3c, is a copy of CCCSD Resolution No. 2006 -027, which contains CCCSD's service policy Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency Name: Contra Costa Sanitary District (CCCSD) Contact Name/Title: Ann E. Farrell. Director of Engineering Address: 5019 Imhoff Place, Martinez, CA 94553 Telephone /Fax: 925/229 -7302 / 925 - 228 -4624 Email: afarrell(&centralsan.dst.ca.us Responses may be prodded as attachments 1) Service: a) Does your agency provide service to customers outside its boundaries? If so, is the service covered by an interagency agreement? Please indicate where services are provided outside your boundaries on a service area map. Household Hazardous Waste Collection Facility ( HHWCF) — CCCSD operates an HHWCF in partnership with the Mountain View Sanitary District, the City of Concord, the City of Clayton and the southern portion of the City of San Ramon. This service is covered by interagency agreements and is provided in the portions of these jurisdictions that are outside CCCSD's wastewater service area. Wastewater Treatment and Wastewater Recycling — CCCSD provides wastewater treatment and wastewater recycling for the Cities of Concord and Clayton under an interagency agreement. This service is provided in the portions of these jurisdictions that are outside CCCSD's wastewater service area. Pretreatment/Source Control Inspection /Pollution Prevention Services - CCCSD provides pretreatment/source control inspection services for the Cities of Concord and Clayton under interagency agreements. CCCSD also provides pretreatment/source control inspection services and pollution prevention services for the Mountain View Sanitary District under an interagency agreement. These services are provided in the portions of these jurisdictions that are outside CCCSD's wastewater service area. County Clean Water Program - CCCSD is the administrator for storm water inspections for most of Contra Costa County under an agreement with the County Clean Water Program. This administration task includes areas outside of CCCSD's service area. CCCSD also provides storm water inspection services for Mountain View Sanitary District, Concord, Clayton, and San Ramon Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 2 of 9 (for south San Ramon). These services are all covered by interagency agreements, These services are provided in the portions of these jurisdictions that are outside CCCS is wastewater service area. Trucked Waste — CCCSD allows permitted haulers to dispose of septic tank and portable toilet waste at CCCSD's wastewater treatment plant. The waste sources must be located either within the CCCSD service area, or outside the service area, but within Contra Costa County. This is not covered by an interagency agreement. Human Resources — CCCSD has an interagency agreement with DDSD to provide human resources services for Delta Diablo Sanitation District (DDSD), such as employment recruitment. These services are provided on an occasional basis. Laboratory Services — CCCSD has interagency agreements with Mountain View Sanitary District (MVSD) and Contra Costa County Health Services to provide these agencies with laboratory analytical services. These services are provided on an occasional basis. Mutual Aid Services — CCCSD has informal mutual aid agreements with neighboring agencies to. lend equipment and staff in case of urgent or emergency situations. In the past, CCCSD has come to the assistance of the cities of Antioch and Concord, DDSD and MVSD. Each time, CCCSD was reimbursed for its participation. b) Do you provide service by contract to other agencies, or do you contract with other agencies to provide service within your boundaries? If yes, please describe. In addition to the interagency agreements described in the response to Question la, CCCSD provides and receives various services by contract with other agencies. County Clean Water Program — As noted in the response to Question la, CCCSD is the administrator for storm water inspections for most of Contra Costa County under an agreement with the County Clean Water Program. Some of these administration services are provided for areas inside of CCCSD's service area. Under this program, CCCSD also provides inspection services for cities within CCCSD's boundaries. storm water Contra Costa Water District (CCWD) — CCCSD has an interagency agreement with Contra Costa Water District wherein CCWD provides operation and maintenance services for CCCSD's recycled water distribution system. Also, CCCSD leases a portion of its treatment plant site to CCWD for use in drying the alum sludge from their water treatment plant. The sludge is piped to CCCSD's site and then trucked away by CCWD after drying. Dublin San Ramon Services District ( DSRSD) — CCCSD has an interagency agreement with DSRSD that allows wastewater to overflow from CCCSD's San Ramon Pumping Station to DSRSD's nearby collection system in the event of a pumping station emergency. Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 3 of 9 East Bay Municipal Utility District ( EBMUD) — CCCSD has an interagency agreement with EBMUD to have EBMUD accept and process biosolids from CCCSD as a backup in emergencies (such as when CCCSD's incinerators are out -of- service) or during peak conditions when operating a second incinerator would be inefficient c) Describe any honors, awards or other accomplishments for which your agency and /or staff has been recognized in the past three years. CCCSD's honors, awards and other achievements for the past three years are listed below. ■ California Association of Sanitation Agencies (CASA) 2003 Public Outreach /Education Award for Student Education Programs ■ Contra Costa Economic Partnership Smart Permitting Award for 2003 ■ California Water Environment Association (CWEA), San Francisco Bay Section Annual Awards for 2003 - Award Nominees: Electrical and Instrumentation Person of the Year — Don Parker Al Ditman Professional Development Award — Craig Mizutani ■ U.S. Environmental Protection Agency 2003 National Operations and Maintenance Excellence Award ■ Environmental Sciences Collaborative — 2004 Contra Costa County Industry Partner of the Year in the Environmental Sciences Industry Clusters • 2003 Association of Metropolitan Sewerage Agencies (AMSA) Gold Award — 6"' Consecutive Year of No Violations — 100 Percent Compliance • 2003 Comprehensive Annual Financial Report (CAFR) Award for Excellence in Financial Reporting ■ 2004 National Purchasing Institute 9t' Annual Achievement of Excellence in Procurement Award ■ National Association of Clean Water Agencies (NACWA) Gold Award for 2004 for 100 Percent Compliance with National Pollutant Discharge Elimination System (NPDES) Permit Requirements (7th consecutive year) ■ U.S. Environmental Protection Agency Pretreatment Program Excellence Award for 2005 ■ 2004 Comprehensive Annual Financial Report (CAFR) Award for Excellence in Financial Reporting • University of the Pacific Employer of the Year Award ■ 2005 Comprehensive Annual Financial Report (CAFR) Award for Excellence in Financial Reporting ■ National Association of Clean Water Agencies (NACWA) Gold Award for 2005 for 100 Percent Compliance with National Pollutant Discharge Elimination System (NPDES) Permit Requirements (8th consecutive year) ■ California Association of Sanitation Agencies (CASA) Technological Achievement Award for Geographic Information System ■ Outstanding Employer Award — University of California, Davis (for Co -Op Program) d) Please identify any positions that have had a long -term vacancy within the past two years. Indicate current status. Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 4 of 9 There are no positions with long -term vacancies. There is the usual staff turnover through retirements, resignations and deaths. The recruitment process to fill vacant positions takes a certain amount of time. This results in a vacancy rate of on the order of five percent at any given time. e) If rates have increased in the past 3 years, please provide copy of staff report to Council or Board. Over the last three fiscal years, the annual Sewer Service Charge (SSC) rates were increased two of the three years. In 2004 -05 the SSC was increased from $272 to $280. In 2005 -06 there was no rate increase. For the current fiscal year, 2006 -07 a $9 rate increase to $289 per year was implemented. In addition, the facility capacity fees were increased in 2005 for the first time since 2003. The Gravity Capacity Fee was increased from$3,983 to$ 4,150 per Residential Unit Equivalence (RUE) and the Pumping Capacity Fee was increased from $988 to $1,333 per RUE. In 2006, the Gravity Capacity Fee was increased to $4,262 per Residential Unit Equivalence (RUE) and the Pumping Capacity Fee was increased to $1,404 per RUE. Fees for other services (i.e., plan reviews, permit issuance, inspections) are increased periodically to ensure the costs of these services are being covered. Relevant staff reports are attached. 2) Cost Avoidance and Shared Facilities: a) Please list all joint powers authorities (JPAs) or joint- decision making efforts to which your agency belongs or participates, and include the purpose of each. Bay Area Clean Water Agencies ( BACWA) — This is a group of wastewater treatment agencies that discharge to San Francisco Bay who have formed a JPA to deal with issues of mutual interest and to further the knowledge and understanding of the water quality issues associated with the San Francisco Bay estuary. BACWA collects, interprets, and manages data on the aquatic life and quality of waters of the San Francisco Bay system, with emphasis on pollution - related effects. BACWA also represents the interest of the Agency or its Member Agencies in legal and regulatory proceedings. California Sanitation Risk Management Authority ( CSRMA) — This association of wastewater agencies was established to provide broad coverage and quality risk management services at a cost savings to its members. CSRMA offers a Pooled Liability Program, Primary Insurance Program, Property Insurance Program, Workers' Compensation Program, and Risk Management. Bay Area Pollution Prevention Group (BAPPG) and California Fats, Oils and Grease Working Group (Cal FOG) — These organizations utilize collective resources of wastewater agencies to develop common public education efforts regarding the proper disposal of specific water quality pollutants (such as mercury, copper, and pesticides) as well as fats, oils and grease (which can contribute to sanitary sewer overflows). Other Agencies - On occasion, CCCSD will enter into a project- specific joint powers agreement with a city, Contra Costa County, or another public agency, often to reduce the costs or Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 5 of 9 community disruption of constructing a sewer project. See the answer to Question 2c for examples. b) Please identify capital facilities and /or programs that are shared with another agency. CCCSD's contract with the City of Concord and Clayton provides that they pay a flow proportional share of the cost of all new and renovated treatment and recycling facilities and all interceptors and pumping stations that convey Concord and Clayton flows. In exchange, CCCSD treats and disposes of Concord and Clayton sewage. While CCCSD retains ownership of the facilities, they are in essence shared because Concord and Clayton have rights to discharge their permitted flows to us. The HHWCF is also a shared facility, with a portion of the original and ongoing capital costs being paid by our partners: MVSD, the Cities of Concord and Clayton, and the City of San Ramon (for south San Ramon). CCCSD retains ownership of the facility. The Contra Costa County Training Center in Martinez, the federal Western Regional Training Center in San Francisco, and local governments Norcal Training Program are utilized by CCCSD as low -cost alternatives to outside training. Also, CCCSD organizes and /or participates in joint training efforts with other Bay Area public agencies. Examples of such training include programs for reducing mercury use in hospitals; cooling tower operation and maintenance; wastewater treatment plant operations and maintenance; collection system construction and maintenance; pollution prevention; and public sector ethics. CCCSD is a member of several organizations that work on specialized issues and programs pertaining to CCCSD's mission. • Urban Pesticide Committee, a Bay Area wide group of agencies concerned with reducing pesticide pollution; • Integrated Pest Management (IPM) Regional Partnership, a Bay Area group of Publicly Owned Treatment Works (POTWs) and storm water agencies who work with over 100 nursery and hardware stores to promote less toxic alternatives for residents; • Bay Area Air Toxics Group, which is an association of wastewater treatment agencies in the region. These agencies contribute to a joint data pool and work with air quality regulators; and • Contra Costa Green Business Program, an effort by 20 other cities, fire districts, wastewater agencies, water districts, County, Bay Area Air Quality Management District (BAAQMD) Clean Water Program and Pacific Gas & Electric (PG &E) to recognize businesses that comply with all environmental regulations and who take action to conserve resources and prevent pollution. • CCCSD employees actively participate in other professional associations, as well, such as the California Water Environment Association (CWEA) and the Northern California Pipe Users Group (PUG). These organization provide training and knowledge- sharing among public and private sector participants. Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 6 of 9 c) Please identify any exemplary measures that are currently in use to avoid or control costs. CCCSD is continually renovating and replacing its collection system. Its pipes are located in public roadways and private easements throughout our service area. CCCSD often partners with the cities and county to coordinate construction projects of mutual benefit through the use of joint powers agreements. As examples, CCCSD is currently partnering with the City of Martinez in the reconstruction of the Morello Bridges, which serve as a pedestrian and bike pathway as well as a support for one of CCCSD's pipelines. Another time, CCCSD constructed a water line for the City of Martinez while replacing one of CCCSD sewer lines. CCCSD recently partnered with the City of Pleasant Hill to fix a neighborhood landslide at the same time as we replaced some pipelines in order to affect a private neighborhood only once. CCCSD typically partners on pavement replacement, trying to time project work such that it does not dig up a recently paved street. Instead, CCCSD participates financially, through joint powers agreements, in the repaving of affected streets after construction is complete. CCCSD is currently partnering with the City of Concord to construct a pipeline for it that will allow the City of Concord to abandon a pumping station by tying into a new, major CCCSD interceptor at a lower elevation. Additionally, each year, CCCSD meets with the jurisdictions in which it is planning to do construction work and proactively looks for partnering opportunities on upcoming capital projects. Internally, CCCSD has a longstanding continuous improvement and strategic planning effort that has always had a cost control /cost avoidance element to it. CCCSD management strongly promotes collaboration in the workplace that welcomes employee participation in cost management at all levels. Examples of costs saving measures resulting from these efforts include: • increasing in -house design work, rather than using outside consultants; • pre - funding retirement costs; • installing energy saving improvements, such as motion detecting light switches; • purchasing state -of- the -art land surveying instruments to reduce the number of surveyors per crew from two to one; and • bulk packaging of latex paints and anti - freeze collected at the HHWCF to reduce their disposal costs. 3) Boundaries and Future Planning a) Are there areas that your agency serves that might be served more efficiently by another agency? (p /ease indicate on service area map) CCCSD always strives to serve areas as efficiently as possible. As situations arise where another agency can more efficiently serve a property, CCCSD has agreed to detach the property from its service area. In 2001, for example, CCCSD detached a small area east of the Concord Naval Weapons Station that could be more easily served by DDSD. CCCSD also occasionally detaches properties that could be better served by MVSD and vice versa. Contra Costa LAFCO Water / Wastewater Municipal Service Review Agency: CCCSD Supplemental Questionnaire Page 7 of 9 At one time, it was thought that northern San Ramon would be served more efficiently by DSRSD, but that agency had limited treatment capacity and the idea was abandoned. Since that time, all the infrastructure has been constructed to allow CCCSD to efficiently serve that area. The sunk costs are such that it would no longer be more efficient for DSRSD to serve northern San Ramon. b) Are there areas that your agency plans to serve or would like to serve that are outside your current boundary or sphere of influence? (p /ease indicate on area map) CCCSD regularly submits to LAFCO requests to annex properties that are islands within its overall boundary. These isolated islands can be seen on CCCSD's boundary map and are expected to be eventually served by CCCSD, but to this point are annexed to CCCSD piecemeal as property owners submit requests for service. It would be more efficient to annex all of these islands at one time. Additionally, there are some substantially developed areas on the periphery of CCCSD's service area (Alhambra Valley being the largest example and it is currently in the process of being annexed) that are within CCCSD's SOI, but have not yet been annexed. CCCSD expects these areas also to eventually be included within its service boundaries as interest in connecting to sanitary sewers builds, due to the aging and eventual failure of septic systems installed long ago. Additionally, CCCSD is closely following the City of Concord's Concord Naval Weapons Station (CNWS) base reuse planning process and has begun initial discussions with the city regarding efficient methods of providing wastewater collection services to future development in the area. The northern and central part of the CNWS is within CCCSD's boundaries and historically has been served by CCCSD. Other parts of the CNWS property are outside CCCSD's boundaries and could be served by the wastewater collection systems of either agency. Issues of concern are the capacities of respective collection system elements (e.g., pipelines, pumping stations) and the ability to assess capacity fees to finance improvements needed to serve future development. c) Please provide a copy of any policies regarding extension of service or new connections. CCCSD recently approved a service policy (attached) requiring CCCSD to provide wastewater collection, treatment, and disposal facilities that: a) have sufficient capacity to accommodate the demand from land uses approved in the General Plans of the land use planning jurisdictions within CCCSD's service area, and b) are located so as to serve all existing or approved development within CCCSD's service area and all customers contracting with CCCSD for service, provided gravity service is feasible. Collection service by gravity sewers is preferred to community pumping systems for financial and environmental quality reasons. Board approval is required to establish a community pumping system. Such approval shall not be based on the presence or absence of housing affordable to low income households. The Board may condition its approval by requiring a community pumping system to be temporary, and mandating connection to a gravity sewer when it later becomes available. In times of excess wastewater collection, treatment and disposal capacity, CCCSD shall review and provide or permit the provision of public sewer service to residential housing developments on an income - neutral basis. Upon an applicant's payment of applicable fees or the execution of a Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 8 of 9 contract to that effect with CCCSD, CCCSD shall permit public sewer service to eligible customers in the order of an application's submission, subject to the general restrictions set forth herein and the income - neutral requirements of the District Code. In the event of service limitations due to capacity or regulatory constraints, service priority shall be given to planned developments that include housing units affordable to lower income households in accordance with Government Code Section 65589.7 (SB 1087, 2005), and the limitations set herein. d) Has your agency identified any potential opportunities for reorganization with another service provider? Do you anticipate any boundary changes or reorganizations within the next (two, three, five) years? If so, please describe. CCCSD has not identified any potential opportunities for reorganization with another agency. While CCCSD could provide more wastewater services in areas it commonly partners with - -the cities of Concord and Clayton and Mountain View Sanitary District—this agency has no plans to serve these areas and believes that the current arrangements are efficient and beneficial to all parties. 4) Local and Regional Issues a) Has your agency been found to be in violation of any state or federal standards in the past five years that affect operations? Are there any outstanding violations? If yes, please describe. Wastewater Treatment - CCCSD has an exemplary record with regard to compliance with state and federal water quality standards at its wastewater treatment plant and has been recognized for this accomplishment (see the response to Question 1c). Air Quality – At its wastewater treatment plant, CCCSD operates several combustion facilities that produce air emissions, including a biosolids incinerator, a cogeneration system, and various engines and boilers. In the past five years, CCCSD has experienced four, relatively minor air quality violations resulting from the operation of these facilities. All of these violations have been resolved; none are still outstanding. • In 2001, a leak in a filter bag seal in the incinerator ash baghouse caused an air permit violation. Status: CCCSD paid a $750 fine by the Bay Area Air Quality Management District ( BAAQMD). • In 2004, the cogeneration facility's firing rate was exceeded and reported late. Status: CCCSD has complied with all reporting requirements and paid a $2,000 penalty to the BAAQMD. ■ In 2005, the exhaust from one of the biosolids furnaces experienced a brief opacity excursion. Status: there was no opacity violation; however, a Notice of Violation was issued for submitting the episode report after more than 96 hours. CCCSD has complied with all reporting requirements and paid a $200 to BAAQMD Contra Costa LAFCO Water / Wastewater Municipal Service Review Supplemental Questionnaire Agency: CCCSD Page 9 of 9 ■ Also in 2005, one of the auxiliary boilers burned landfill gas below the temperature specified in the permit. Status: CCCSD has complied with all reporting requirements and paid a $800 penalty to BAAQMD. Collection System Overflows — A list of reportable sanitary sewer overflows (SSO) from 2001 -2005 has been included in this submittal. Of the 34 incidents, 10 resulted in overflows of less than 1,000 gallons and 24 exceeded 1,000 gallons. Despite CCCSD's diligent collection system maintenance program, most of the overflows were caused by either root or grease blockages. CCCSD's SSO Response Plan also has been provided. As a penalty for SSOs that occurred from 2000 -2004, CCCSD paid a $10,000 penalty to the San Francisco Bay Regional Water Quality Control Board and agreed to satisfactorily complete a supplemental environmental project in an amount equivalent to $155,000. b) Please identify issues and concems your agency has regarding the provision of service, both near -term and long -term (i.e. infrastructure needs, funding, regulatory changes, growth and development patterns, etc.) CCCSD is fortunate to have had strong financial management and is in a strong financial position that allows it to properly fund infrastructure needs. While CCCSD does see regulatory change on the horizon, CCCSD is well positioned both technically and financially to address the anticipated changes. Regarding growth and development patterns, CCCSD planners are following the densification patterns in the service area, as well as the potential development of the Concord Naval Weapons Station. These developments may result in the need for more capacity in our collection and treatment systems. As these needs develop, CCCSD will adjust its facility capacity fees as appropriate and also work with developers to ensure that adequate funding is available for needed facilities. Questions: Carolyn Schaffer, Project Manager Dudek cschaffer0cludek.com 800.450.1818 x3316 949.450.7986 Direct Line 714.296.6614 Cell Submit Information to: Lou Ann Texeira, Executive Officer Contra Costa LAFCO LTexe0lafco. cccou nty. us 651 Pine Street, 6"' Floor Martinez, CA 94553 -1229 925.335.1094 - Y6 I r j � California Regional Water Quality Control Board San Francisco Bay Region Linda S. Adams 1515 Clay Street, Suite 1400, Oakland, California 94612 Arnold Sc6warzenegger Secretary for (510) 622 -2300 • Fax (510) 622 -2460 Governor Environmental Protection http: / /www.waterboards .ca.gov /sanfranciscobay Date: AUG 2 12006 File No: 2119.1008 (Tetra Tech — CEB) Central Contra Costa Sanitation District ATTN: James Kelly, Director of Operations 5019 Imhoff Place Martinez, CA 94553 RE: Central Contra Costa Sanitation District, NPDES No. CA00037648, Inspection Report Dear Mr. Kelly: On January 25, 2006, Tetra Tech, Inc., a USEPA contractor, conducted a compliance and evaluation inspection at your facility. If you have any questions concerning this report, please call me at 510- 622 -2346, or email cboschen @waterboards.ca.gov. Sincerely, Christine Boschen NPDES Section Leader Enclosure: Inspection Report CIWQS Inspection No.: 716926 Entered by: CEB Preserving, enhancing, and restoring the San Francisco Bay Area's waters for over 50 years co Recycled Paper EPA Region IX and California Regional Water Quality Control Board Compliance Evaluation Inspection (CEI) Checklist Name and Location of Facility Inspected Entry Time /Date Permit Effective Date Central Contra Costa Sanitation District 8:00 am 06/20/2001 01/25/2006 5019 Imhoff Place Martinez, CA 94553 NPDES Permit Number: Order Number: QX Major Permit Expiration Date CA0037648 01 -068 Minor 05/31/2006 Name(s) of On -Site Representative(s), Title(s), Phone, and Fax Numbers) Notified of Inspection? Douglas J. Craig, P.E. (Plant Ops. Div. Mgr) phone: (925) 229 -7284 Yes No fax: (925) 689 -1232 Name of Responsible Official, Title, Phone and Fax Number Contacted? James M. Kelly (Director of Operations) Q Yes 5019 Imhoff Place No Martinez, CA 94553 phone: (925) 229 -7284 Presented Credentials? Inspector(s) Lead Inspector: Matt Oxsalida (Amendola Engineering) Yes No Weather Conditions at the Time of the Inspection: cloudy and foggy with no evidence of recent precipitation Facility Receiving Water: Suisun Bay Overview of Areas Evaluated During Inspection S= Satisfactory. M = Marginal, U _ Unsatisfactory, N = Not Evaluated Permit: S Flow Measurement: S Operations and Maintenance: S Records and Reports: S Self Monitoring Program: S Solid Waste Handling and Disposal: S Facility Site Review: S Compliance Schedules: N Pretreatment (POTWs Only): N Effluent and Receiving Waters: S Laboratory: S Stormwater: S Prepared By: Matt Oxsalida (Amendola Engineering) on 02/02/2006 Reviewed By: Rob Naeser on 03/30/2006 NPDES Permit No. CA0037648 Order No. 01-068 Facility Narrative On 01/25/2006, a USEPA contractor inspected the Central Contra Costa Sanitation District in Martinez, CA. Discharges from the facility are regulated by NPDES Permit No. CA0037648 and Regional Board Order No. 01 -068. The primary purpose of the inspection was to determine the accuracy and reliability of the discharger's self - monitoring and reporting program. The primary on -site facility representative was Douglas J. Craig, P.E. (Plant Ops. Div. Mgr). The weather at the time of inspection was cloudy and foggy with no evidence of recent precipitation. The treatment plant consists of the following processes and treatment units: bar screens, influent pumps; a hydrogen peroxide odor control system; grit removal units; primary sedimentation tanks; aeration basins; secondary clarification tanks; UV disinfection; and a filtration plant for water recycling. The facility has the ability to process a portion of the treated effluent with the filtration plant for water recycling uses. The water recycling system has a 30- million gallon storage basin and provides reclaimed water to industrial and urban landscape clients. In addition, the facility has the ability store wet weather flow during periods of extreme wet weather in three holding basins. The basins receive surplus wastewater, mostly primary effluent. The holding basins have a combined volume of 140 million gallons. Primary sludge is pumped to the sludge - blending tank, which feeds the centrifuge system for dewatering. Secondary waste activated sludge is thickened by a dissolved air flotation (DAF) system. The DAF system solids are pumped to a sludge - blending tank, which feeds the centrifuge system. Dewatered solids are incinerated on -site. Sterilized ash is hauled off site for use as a soil additive. The Central Contra Costa Sanitary District (CCCSD) serves over 438,000 residential, commercial, and industrial customers. The service area includes a number of cities, towns and unincorporated areas in central Contra Costa County (Martinez, Clyde, Pacheco, Concord, Pleasant Hill, Clayton, Walnut Creek, Lafayette, Orinda, Moragga, Alamo, Danville, and San Ramon). The treatment plant has an average dry weather flow design of 45 million gallons per day (MGD). The average daily flow for the months of November and December 2005 were reported to be 39.2 and 38.4 MGD, respectively. An antidegradation study has been provided by the CCCSD to the Water Board stating that the facility can fully treat and discharge 53.8 MGD. CCCSD received approval for the antidegradation study flow increase (45 MGD to 53.8 MGD) from the Executive Officer on September 10, 2002. During wet weather flows the facility can store approximately 140 million gallons of wastewater for treatment when operational flows permit. Flow is diverted to the storage pond system from the primary sedimentation tanks when the flow rate reaches 110 MGD. If the influent flow rate reaches a rate of 210 MGD, the influent flows in excess of 210 MGD are diverted directly to the storage pond system. In cases of extreme wet weather events the storage pond system may discharge to the Pacheco Slough which discharges to the Suisun Bay via the Walnut Creek. This location is permitted as outfall E -002. There has not been a discharge from outfall E -002 since February 1998. Effluent discharges to the Suisun Bay through a submerged outfall line (E -001) approximately 1,600 feet off shore at a depth of 24 feet below low tide. The outfall was designed with multi -port diffuser to minimize the impact on the receiving waters. The CCCSD laboratory team maintains the samplers and conducts self- monitoring activities. The laboratory team does receive operational field support as needed (including sampler repair, etc). Page 2 of 15 NPDES Permit No. CA0037648 Order No. 01-068 Influent samples are collected immediately following the bar screens, while effluent samples are collected from the final effluent channel. Locations, methods, and parameters analyzed appear to comply with permit requirements. The on -site laboratory performs all required NPDES analyses, with the exception of chronic toxicity. The laboratory's organization has been structured so that there are separate sections for sample custody, process control analysis, microbiology, organic preparation, organics analysis, and metals/wet chemistry. The laboratory is fully automated and manages the data by means of a Laboratory Information Management System (LIMS). Discharge; Monitoring Reports (DMRs) for the months of January 2005 through November 2005 were reviewed as a component of this inspection. The review included a comparison of reported monitoring results versus limitations contained within the permit. Exceedances of effluent limits were not identified during the period of review. The facility appeared to be well maintained and operated efficiently. The operations team staffs the plant 24 hours a day, seven days a week with the use of three shifts. The operations team has 36 employees, while the laboratory and maintenance teams have 8 and 37 employees, respectively. All standard operating procedures (SOPs) have been placed on the facility-wide computer system for access and use at all process areas. SOPs in many cases are electronically linked to manufacturers information as well as videos showing various tasks being preformed. The system has been designed to complete employees training and support needs. Facility has redundant and back -up systems for critical process units (i.e., two furnaces for solids incineration). The SCADA and automated maintenance programs appear to be applied to all process unit's operations and used as a key component of their operational approach to facilities management and process efficiency. Both systems were reviewed and appeared to provide the operations and maintenance teams with vital summary reports on a regular basis. The operations system's reports included operational trends and efficiencies, while the maintenance system provided key reports associated with critical equipment maintenance needs as well as general preventive maintenance schedules the facility's equipment. The facility inspects its effluent outfall structure approximately every five years. The last inspection was conducted approximately two years ago and required approximately six weeks. During the inspection of the structure the facility is permitted to discharge secondary treated effluent to the Pacheco Slough which discharges to the Suisun Bay via the Walnut Creek. Location of effluent monitoring point: Since the discharge location is submerged in Suisun Bay approximately 1,600 ft off shore, obtaining GPS coordinates of this location was not possible. The GPS location of the effluent monitoring point (automatic sampling station) is 37 59' 53" N, 122 04' 07" W. The accuracy of the coordinates is 26 feet. Major Findings were not identified during the inspection. A photo log was not prepared for this inspection due to technical malfunction with the inspector's camera. Physical conditions observed during the inspection were similar to those presented in the photo log from the 1/12/2005 inspection. Maior Findings NONE Page 3 of 15 PERMIT NPDES Permit No. CA0037648 Order No. 01-068 OVERALL RATING S INSPECTEDITEM EVAL 1. Current copy of permit available. S 2. Correct name and address of permittee. S 3. Facility as described on permit. S 4. a. Notification given to RWQCB of process /production modifications, collection system expansions, etc. that impacted quality /quantity of discharge or changes to the facility or increased discharge. b. Permit modification received, if required, prior to changes. S N 5. Recent permit modifications, amendments, or compliance orders on file. S 6. Number of discharge outfalls matches those identified in the permit. S 7. Name of receiving waters listed correctly in the permit. S 8. Permit status (i.e., current, expired, or extended). Current 9. Permit renewal application submitted to the RWQCB within 180 days of expiration date. S Notes: The NPDES Permit renewal application was submitted to the Water Board In November 2005. This section was rated satisfactory because all items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 4 of 15 RECORDS AND REPORTS NPDES Permit No. CA0037648 Order No. 01 -068 OVERALL RATING S INSPECTEDITEM EVAL 1. NPDES records maintained for the required time period (5 years). S 2. a. Spills and bypasses were reported and documented as required by the permit. b. Follow -up written documentation given as required by the permit (within 5 days). N N 2. According to facility personnel, no wastewater spills or treatment system bypasses have occurred at the plant in recent years. 3. Discharge Monitoring Report (DMR) evaluation: a. The responsible person or designee signs and certifies the DMR. b. The facility monitors more frequently than required by the permit (Yes or No). c. All data collected are summarized on the DMR. d. Data reported on DMR is consistent with analytical results. e. Coliform concentrations calculated as required by the permit (e.g., median, geometric mean). f. Numerical values for the minimum detection limits are reported on DMR when laboratory reports "Not Detected" or "0" (e.g., if MDL =3, report " <3" on DMR). g. "Less than" values properly carried through loading calculations. h. Flow measurement period used for loadings calculations brackets the sampling period. i. Effluent loading calculated with effluent flow, if available. j. Number exceeding (N.E.) properly reported on all DMRs and annual reports. S No S S S S S N S N 3. All reviewed DMRs were complete and submitted properly. The facility Is required to collect samples in the receiving water for enterococcl. In addition, the facility also collects samples and reports analyses for total and fecal coliform In the receiving water. 3h. Flow tables were not reviewed as part of the Inspection. 4. Reports completed in time frame and frequency required by the permit (not all reports required for all facilities): a. Discharge Monitoring Reports b. Biosolids Monitoring Reports c. Biosolids Management Reports d. CSO and /or Inflow /Infiltration (1 /1) Reports e. Compliance Schedule Reports f. Pretreatment Reports g. Other: S S S N N N N 4g. The facility reported no sanitary sewer overflows (SSOs) from January 2005 through the date of the inspection. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 5 of 15 RECORDS AND REPORTS NPDES Permit No. CA0037648 Order No. 01 -068 OVERALL RATING S INSPECTEDITEM EVAL 5. Sampling and analytical records (for water and biosolids) include: a. Date, times, and location of sampling b. Names of individuals performing sampling c. Analytical methods d. Results of analyses e. Dates of analyses f. Time of analysis, as necessary, to verify holding times g. Analysts' names or initials h. Instantaneous flow at grab sample stations, if required S Yes S S S S S S 5. All reviewed laboratory analytical sheets for both the on -site and contract laboratories contained the required Information. 6. Plant records include: a. Daily plant operational records or log book b. Equipment maintenance records and schedules c. CSO /lift station check records or log book d. Records of auxiliary power checks e. Spill Prevention Control and Countermeasure (SPCC) plan f. Pollution Prevention Plan (P3) g. Influent and effluent flow measurement records maintained for the past three years h. Other: S S S S S S S N 7. All required records and reports were organized and available for inspection. S Notes: This section was rated satisfactory because all items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 6 of 15 FACILITY SITE REVIEW NPDES Permit No. CA0037648 Order No. 01-068 OVERALL RATING S INSPECTEDITEM EVAL 1. All treatment units and supporting equipment are in service and mechanically functioning properly. S 2. Hydraulic and organic loadings are consistent with the fact sheet and plant design criteria. a. Are there signs of overloading to the facility and collection system, including I &I and septage loading? S 3. Peak flows remain within the established plant capacity. a. If flows have exceeded capacity, has the RWQCB been notified? S N 4. Lift stations are properly monitored, have a back -up power source and are not subject to chronic spills and /or overflows. N 4. Lift stations were not evaluated as part of the Inspection. 5. Odors are adequately controlled, resulting in limited complaints. S 6. Residual chlorine monitoring is well documented and sampling /monitoring is representative of the discharge. a. If UV system is used, the dosage intensity, tubes, and alarms are adequate, maintained and documented. S S 7. Housekeeping procedures are adequate to prevent release of pollutants to the environment: a. Adequate dikes and secondary containment b. Spill containment and clean -up c. Signs of spillage to soil, groundwater, or surface water d. Stormwater and leachate management from storage piles e. Leaking pipes, pumps, etc. f. Drum and chemical storage areas g. Minimization of pollutants entering storm water outlets h. Other open dumps or debris piles S S S S N S S S N 7d,h. The facility did not maintain storage piles or open dumps on -site. 8. Signs of tank deterioration and /or settlement. S 8. All wastewater treatment tanks were In good working condition at the time of the Inspection. 9. Safety concerns are present that may interfere with the proper operation, maintenance, and /or monitoring. S 10. Material Safety Data Sheets are available for stored chemicals. N 10. MSDSs were available at the time of the Inspection, but were not reviewed In detail as art of the Inspection. 11. Equipment is available for spill clean -up and containment. S Notes: This section was rated satisfactory because all Items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 7 of 15 NPDES Permit No. CA0037648 Order No. 01-068 EFFLUENT AND RECEIVING WATERS OVERALL RATING S INSPECTED ITEM EVAL 1. Recent DMR history (last 11 months) (outfall number(s) 001): a. Violations of discharge limits b. Spills /bypasses c. Fish kills or other receiving water impacts d. WET testing results are in accordance with permit e. If effluent violations have been identified, what actions has the facility taken to eliminate or reduce their recurrence? S S S S N 1. No effluent violations, spills, or bypasses were reported for January 2005 through November 2005. 2. DMR spot checks conducted: January 2005 May 2005 Auoust 2005 November 2005 a. Internal lab sheets and contract lab results properly transferred to DMRs S b. Monthly average, weekly, maximum, etc., values correctly calculated per the permit S c. Influent and effluent loadings reported S d. DMR is accurate and complete for each outfall S 3. Appearance of effluent during inspection: a. The effluent was viewed durinq the inspection b. Excessive foam, scum or sheens present c. Cloudy and /or color d. Excessive solids Yes S S S 3. The effluent appeared clean during the inspection. 4. Appearance of receiving water(s) during inspection: a. The receiving water(s) was viewed during inspection b. Distinctly visible foam or sheens on receiving water(s) c. Biosolids beds or deposits of solids below discharge point(s) d. Distinctly visible plume from discharge(s) to receiving water(s) e. Discharge creates objectionable odor at or near receiving water(s) No N N N N 4. The discharge location Is submerged In Suisun Bay approximately 1,600 ft off shore, and was not observed as part of the Inspection. Notes: This section was rated satisfactory because all items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 8 of 15 FLOW MEASUREMENT NPDES Permit No. CA0037648 Order No. 01 -068 OVERALL RATING S INSPECTED ITEM EVAL 1. Flow measurement devices and methods: Influent Measurement Primary Device: Venturi Meters (4) Secondary Device: Ultrasonic transducer Effluent Measurement Primary Device: Magnometer Secondary Device: S S 2. Flow measurement devices designed to meet permit requirements ( "continuous measured," "continuous record," etc.). S 3. Flow measurement location is representative of the actual discharge (considering return and bypass lines, etc.). S 4. Flumes: a. Approach channel is straight for at least 10 times the maximum head height in flume. b. Flow entering flume is reasonably well distributed across channel and free of turbulence, boils, or other disturbances. c. The flume is clean and free of debris or deposits. d. All dimensions of flume are accurate, level, and plumb. e. Flume head is being measured properly. f. Flume is sized properly to measure the existing range of flows. g. No obstructions are downstream causing inaccurate flow measurement due to excessive "submergence" in flume. h. Proper flow tables are being used. N N N N N N N N 4. Flumes were not in use at the facility at the time of the inspection. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 9 of 15 FLOW MEASUREMENT NPDES Permit No. CA0037648 Order No. 01 -068 OVERALL RATING S INSPECTEDITEM EVAL 5. Weirs: a. Approach channel is straight for at least 10 times the maximum head height. b. Flow in the approach channel is well distributed across the channel and free of turbulence, boils, or other disturbances. c. Solids accumulation in the bottom of the approach channel. d. Weir crest is located at least two times the maximum head height off the floor of the flow channel. e. The weir plate is level, plumb and without distortions. f. Weir is beveled on the downstream side if the plate is > 1/8 inch thick. g. No leakage around the weir plate. h. Measuring point located at least 3 times the maximum head height behind (upstream of) the weir. i. There is free -fall and access for air below the nappe of the weir, i.e., water doesn't cling to the weir plate. j. Weir sized properly to measure the existing range of flows. k. Proper flow tables being used; weir type and size. N N N N N N N N N N N 5. Weirs were not In use at the facility at the time of the Inspection. 6. Secondary flow device properly installed and maintained, and operating without interference from foam, turbulence, webs, etc. S 7. Date of last flow meter calibration: 11/15/2005 Performed by: Internal Instrumentation Team S 7. Flow meters are calibrated quarterly. 8. Calibration checks by plant personnel routinely performed. S 9. Calibration records (external and internal checks) maintained. S Notes: This section was rated satisfactory because all Items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 10 of 15 NPDES Permit No. CA0037648 Order No. 01-068 SELF - MONITORING PROGRAM OVERALL RATING S INSPECTEDITEM EVAL 1. Sampling locations, type, methods, and frequencies conform to the NPDES permit for all required samples (including influent, effluent, biosolids, receiving water, etc.). S 2. Samplinq locations and methods provide representative samples: a. Grab samples collected during peak flow conditions, not low stress conditions. b. Composite sampling procedures comply with the permit (time vs. flow weighted). S S 3. Automatic samplers and other sampling equipment are properly cleaned. S 4. Samples are preserved using methods listed in 40 CFR, Part 136 (e.g., chilled, acidified). S 5. Sample containers are listed in 40 CFR, Part 136. S 6. Chain -of- custody is maintained and documented. S 7. Samples are taken using the approved protocols: a. Coliform sample taken directly into sterilized container. b. BOD samples taken prior to disinfection or reseeded. c. Oil and grease collected directly into a glass container. S S S 8. pH and /or residual chlorine measured in situ or within 15 minutes of sample collection S Notes: This section was rated satisfactory because all Items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 11 of 15 LABORATORY NPDES Permit No. CA0037648 Order No. 01-068 OVERALL RATING S INSPECTED ITEM EVAL 1. On-site lab is ELAP - certified? (indicate Yes or No) a. What parameters analyzed on -site are used for DMR reportinq: All parameters except chronic toxicity b. Additional parameters analyzed for internal monitorinq: volatile solids and ash Yes 2. EPA - approved analytical procedures are used at on -site lab? S 3. Adequate equipment and procedures used for on -site analyses: a. BOD and CBOD b. TSS c. pH d. Dissolved oxygen e. Residual chlorine f. Temperature S S S S S S 4. On-site laboratory records include: a. Equipment calibration and maintenance. b. Equipment operating instructions and manuals. S S 5. Adequate spare parts and supplies for on -site analyses. S 6. Results of latest DMR QA are available and acceptable. Date of last DMR QA review: N DMR QA was not evaluated as part of the inspection. 7. Satisfactory refrigeration in use. S 8. Contract laboratory used for NPDES compliance analyses? Laboratory Name: Block Environmental Services (ELAP #1812) Visited: No Address: 2451 Eastland Way, Pleasant Hill, CA 94523 Phone: (925) 682 7200 Parameters: chronic toxicity S 9. EPA - approved analytical procedures are identified on contract lab report. S 10. Holding times met by contract laboratory. S Notes: This section was rated satisfactory because all Items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 12 of 15 NPDES Permit No. CA0037648 Order No. 01 -068 OPERATIONS AND MAINTENANCE OVERALL RATING S INSPECTED ITEM EVAL 1. Preliminary treatment units (bar screens, comminuters, grit channels, etc.) properly maintained with wastes properly disposed. S 1. Screenings from the headworks are disposed at the Richmond Land811(Richmond, CA). 2. Adequate oxygen maintained in aerated treatment systems. S 3. No operational problems caused by hydraulic "short- circuiting" in treatment units. S 4. Biosolids wasting /return rates adequate to maintain system equilibrium. S 5. Operations and maintenance manual and supporting information organized and maintained for use: a. Plant operations and maintenance manual b. Equipment manuals c. Plant engineering drawings d. Collection system drawings available or in development e. Maintenance records /costs S S S S S 5. Manuals, drawings, and maintenance records were available at the facility. These items were briefly observed but not reviewed In detail at the time of the Inspection. 6. Routine and preventative maintenance items are scheduled and performed on time. S 7. The amount of maintenance activities and parts in back -log is acceptable. S 8. Operational problems contributing to plant upset, excessive odors, effluent violations, etc. S 9. Level of operator certification as required by the permit and staffing level as specified in the operations and maintenance manual. S 9. The facility meets the requirements of a Class IV facility. The operations team consisted of four grade V nine grade /V and eleven grade 111 supervisors and operators. 10. Auxiliary power available as required by the permit and operates the necessary treatment units. S 10. The facility's co- generation system provides approximately 90% of the electricity and 45% of the steam needed at the plant. In addition, the facility has 21500 -kw diesel generators for backup power. 11. Alarm systems for power and equipment failure. S 12. Treatment control procedures are established for emergencies. S 13. Hydraulic surges are handled without excessive solids wash -out or bypasses. S 14. Spare pumps and parts are readily available. S 15. Facility appears to be well operated and maintained. S Notes: This section was rated satisfactory because all items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 13 of 15 NPDES Permit No. CA0037648 Order No. 01 -068 SOLID WASTE HANDLING AND DISPOSAL OVERALL RATING S INSPECTED ITEM EVAL 1. Biosolids /solid waste disposal /reuse method (e.g., land application, landfill, etc.): Incineration S 2. Disposal /reuse location(s): Land application S 2. Ash generated from incineration Is used as a sol/ supplement throughout Stanislaus County. 3. The above processes are in accordance with the permit. S 4. Storage at facility: a. Adequately sized for periods of inclement weather b. Controls leachate, runoff, and public access S S 5. Recent analytical results for biosolids metals are within permit limits. S 6. Solid waste land application records include: a. Farm maps and land owner agreements b. Soil nutrient analyses done within the last year for active sites c. Records showing loading rate to each site d. Pathogen /vector reduction records (pH, temperature logs, etc.) S S S S Notes: This section was rated satisfactory because all Items reviewed were rated sat /sfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 14 of 15 STORMWATER NPDES Permit No. CA0037648 Order No. 01-068 OVERALL RATING S INSPECTEDITEM EVAL 1. The facility's storm water discharges are covered under the General Permit or the facility's individual permit? a. If no, should the facility have submitted an NOI under the General Permit? S N 1. Storm water Is collected from the facility and directed to the facility's headworks for treatment. 2. The facility has a SWPPP. S 3. Pollutant sources (materials and practices) are adequately controlled (inside, undercover). S 4. Appropriate BMPs deployed. S 5. BMPs are maintained. S 6. Designated outfalls and sampling locations identified. S Notes: This section was rated satisfactory because all items reviewed were rated satisfactory. S = Satisfactory, M = Marginal, U = Unsatisfactory, N = Not Evaluated Page 15 of 15 7 �--� 04% If i t • F JO in us! Community 7.a.4) g) Meeting Alhambra Valley Creek Coalition (AVCC) R''orking to protect rile natural habitat and health of Afli cntbr.l Creek in our back v irtls The : -Ilbanrbra Creek Coalition invites all members of the communitN' to attend a meeting to present conceptual designs for restoring a one -mile segment of Alhambra Creek from the intersection of Alhambra Valley Road and Wanda Way downstream to Alhambra Avenue. 01 144 2 p f h The goal of this project is to provide property owners with specific ways to reduce bank erosion and improve the natural function of the creek. tiine options to be presented include the use of native plants to reinforce creek banks in combination with traditional engineering solutions. The engineering consultant will be present to discuss the designs and answer questions. All landowners in this area are encouraged to attend to learn more about the project. Significant buy-in from local residents will be required in order for this project to succeed. For more Info. or to RSVP, contact Carla Koop, Watershed Coordinator, at 925 - 672 -6522 x110 or carla-koopeca-nacdnet net. par. !►f "'Ui y `.'a� finoT! a; trite+ �' X� r *t watomC /1. Ua,�A.f �� ,:�,; .- 1.,,�,+^:" '.,upa' :K}a :�17- M. .,�, a� L ,�..y •n t�»,i •.. .�. _ ... eft Gftit IC fi�n�f~031slRtra�i Disrid �b `' t� d,�r , . ire Cf` cM , "Eouw t�S `cW ir e rvEece n fhow, • m t her Jibai�g ce j r Project Overview Funding ommunity oversight i invoivment I. Assessment II. Planning & Design Ill. Projects Carr} out professional • .Analyze base map 'Hire project manager • Coordinate survey to develop baseline • Develop project ideas conuactots ma • Choose initial project • Obtain permi ts p • Implement project n . ,a Z V ACHIEVE GOALS • Improve health of creek • Improve bank stability Who We Are Members of the Alhambra Valley Creek Coalition (AVCC) live along Alhambra Creek, a serene stretch of flowing water surrounded by trees and other greenery in Alhambra Valley. Many of us enjoy the peace and privacy of our creekside homes. We also cherish our natural surroundings that provide refuge for birds, frogs and other wildlife. But Alhambra Creek also carries runoff from upstream rangeland and surrounding urban areas. At times, heavy rains lead to high flows, flooding and excessive erosion. The Strentzel Lane drainage project carried out in 2003 ad- dressed these local flooding issues. Residents in the area came together as AVCC in 2004 in order to address erosion problems of creekside properties. AVCC identified a one -mile stretch of Alhambra Creek, from the intersection of Alhambra Valley Road and Wanda Wav downstream to Alhambra :avenue, as an ideal project area to address this problem. Because a creek is a natural system that functions as a whole, piecemeal solutions to erosion can be ineffective or even worsen the problem. A larger area provides the best opportunity to improve the natural function of the creek, stabilize creek banks, and reduce erosion. Working together not only makes good sense from the perspective of the creek, but it also helps us pool resources and obtain assistance. The forty-five property owners who live along this stretch can identify needs and contribute critical knowledge of the creek. The participation of the two public entities within the project reach —John Swett Elementary School (north end) and the National Park Service — gives AVCC better access to funding. AVCC also receives the support of several groups and organizations whose experience and knowledge can help make this project successful. What We've Done • Volunteers collected data about the creek (channel and bank composition, vegetation, etc.) using GPS technol- ogy (Fall 2004, Fall 2005). • Obtained initial grant of $2,500 to survey community members about the creek 'Spring 2005. • Hired engineering firm to survey the creek and develop conceptual desilms (Summer 20061. • Initiated an oral history project to obtain information about historical land use and changes in the watershed from community members (Summer 2(X)6). Your participation is crucial to the success of this community effort. Please join us! 7.a.4)h) RESOLUTION NO. 2005- 005 RESOLUTION SETTING FORTH PROCEDURES FOR APPOINTMENT TO AND COMPENSATION FOR BOARD COMMITTEES WHEREAS, Section 6489 of the California Health and Safety Code provides that compensation be paid to Board Members for each day's attendance at meetings of the Board or for each day's service rendered as a Director by request of the Board; and WHEREAS, Section 2.04.020 of the District Code provides that when the Board considers it necessary for the transaction of business, it may approve the creation of a committee and the District Board President shall appoint the members of the committee; and WHEREAS, the Board has deemed it necessary for the efficient operation of the District to appoint Board Members to represent the District on various commissions, committees and joint powers authorities, and to act as liaisons to cities and the County. NOW, THEREFORE, BE IT RESOLVED, that the President of the Board of Directors shall appoint Board Members to the following standing committees: Budget and Finance Committee Capital Projects Committee Personnel Committee Outreach Committee Recycled Water Committee Household Hazardous Waste Committee Real Estate Committee BE IT FURTHER RESOLUTION, that the President of the Board of Directors shall appoint or confirm Board Members to represent the District as follows: Board Liaison to Cities and County California Special Districts Association —,Contra Costa County Chapter Friends of the San Francisco Estuary Sanitation and Water Agencies of Contra Costa County Resolution No. 2005 -005 Page 2 BE IT FURTHER RESOLVED, that in accordance with Section 2.04.020 of the District Code, when the Board considers it necessary for the efficient transaction of business, it may approve the creation of a committee for the purpose of reviewing, investigating, and recommending with reference to a particular matter; and that the President shall appoint the members of said committee and shall have the authority to appoint an ad hoc committee or representative to similarly act pending a Board Meeting; and BE IT FURTHER RESOLVED, that Board Members serving as the official representative, delegate, or alternate, shall be compensated in accordance with the provisions of the California Health and Safety Code and the Central Contra Costa Sanitary District Code for each day's service rendered as a Director while carrying out the above- referenced appointments. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District, County of Contra Costa, State of California, this 3`d day of February 2005 by the following vote: AYES: Members: Boneysteel e, Lucey, Menesi ni , Hockett NOES: Members: None ABSENT: Members: Nejedly President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: CL6. Sec tao &If the Central Contra O Cost nitary District, County of Contra Costa, State of California L - --� fIx Approved as to Form: Ken on L. Alm Counsel for the District 7.d.3) Central Contra Costa Sanitary District September 7, 2006 TO: HONORABLE MEMBERS OF THE BOARD FROM: JAMES M. KELLY SUBJECT: CALIFORNIA ASSOCIATION OF SANITATION AGENCIES 51St Annual Conference, August 9 -12, 2006 The California Association of Sanitation Agencies (CASA) Spring Conference highlights included the election of Board Member Barbara Hockett to the CASA Executive Board, CCCSD winning the CASA Technological Achievement Award, a presentation by Alexis Strauss of the EPA on upcoming regulatory issues, presentations on two huge southern California Composting facilities, a panel on statewide lateral inspection programs, and an excellent presentation on communication in a crisis. Slides for most presentations are available. Also, CASA presented AB 1234 required ethics training (Kent Alm was one of the presenters), and all CCCSD representatives at CASA attended the training. Please let me know if you want more information on a presentation, and I will forward it to you. I have attached the following handouts for your information: • CASA Spring Conference Program • CASA Executive Director's Report • CASA Lobbyist Report • The Washington Report Regulatory Bulletin • Legal Affairs Update • Pre - Attendees List • Federal Legislative & Liaison Committee Meeting Agenda • CASA State Legislative Committee Agenda • CASA General Session Agenda • 2006 -2007 Executive Board Nominees Board Member Hockett Elected to CASA Executive Board Board member Barbara Hockett was nominated for and elected to be on the CASA executive board. This recognizes Board member Hockett's contributions as a conference attendee, and her election will help assure that CASA continues to focus on issues that are important to CCCSD, such as collection system overflow regulations. Honorable Members of the Board Page 2 September 7, 2006 CCCSD Wins CASA Technology Achievement Award The Central Contra Costa Sanitary District ( CCCSD) was named winner of the 2006 Technological Achievement Award by the California Association of Sanitation Agencies at its annual conference on August 11. The award honors innovative technologies that have broad application in the wastewater industry. CCCSD was recognized for its intranet -based digital mapping system, known as GDI for Geographic Data Interface. This technology has helped create efficiencies for cleaning crews, maintenance planning, and construction planning, and ultimately should lead to better maintenance of the collection system and reduced overflows. Alexis Strauss, EPA REGION 9 Alexis Strauss, Director of the Water Division, EPA Region 9 provided an update on EPA region 9 activities, including: • Compliance schedules in NPDES permits • Biosolids joint conference with CASA • SSO compliance and role of enforcement • TMDLs: significance of the "daily loads" court ruling Ms. Strauss explained that, when the EPA takes an enforcement action, it is normally to encourage agencies that have not historically invested enough in their infrastructure, and need encouragement to get back on track. Compost Facilities There were presentations about two very large composting operations in Southern California, one in Kern County and the other in Riverside county. The first is an outdoor 100 acre, windrow facility with a 500 ton per day capability and the second is a static pile, 24 acre, indoor facility with a 500 ton per day capability. Both facilities have major air regulation, land use, and local acceptance issues and are expected to have major ongoing operational challenges. Neither presenter presented the cost of their projects. That both the public and private sectors are willing to proceed with such difficult projects emphasizes how challenging sludge disposal has become in Southern California. Lateral Inspection Programs Lateral inspection programs for Santa Barbara, Stege Sanitary District, and Monterey County were described, the first two by agency representative, and the third by the Government Affairs Director of the Monterey County Association of Realtors. The first two presenters stated that lateral programs were needed to reduce infiltration and inflow and to reduce collection system overflows. They described their implementation plan, which relied on public outreach and requiring inspections only when there was a known problem or at the point of sale. They indicated after some initial opposition, support and compliance have improved significantly; in fact, they report that new homeowners are Honorable Members of the Board Page 3 September 7, 2006 strong supporters of the program. The realtor representative cited the need to communicate with the affected parties as soon as possible, to cooperate and work with the affected parties to gain consensus, and to work to resolve issues to ensure compliance. These three communities had overflows caused in part by flow and /or roots from laterals, and had strong incentives to reduce overflows. Communication in a Crisis The CASA Communications Committee simulated how to, and how not to, communicate in a crisis. The highlight of the session was actual newscast footage of how a large sewage spill on a southern California beach was handled by the Los Angeles County Sanitation Districts Public Information staff. Excellent handouts were provided detailing what to do before, during and after a crisis. Attachments September 7. 2006 7.d.4) BOARD MEMBER REPORTS Page 1 of 5 Provide direction with regard to election of representative to California Special Districts Association Board for Region Three. 08/07/2006 22:22 8316338353 PAGE 02 CALIFORNIA SPECIAL DISTRICTS ASSOCIATION CANDIDA'T'E STATEMENT - REGION 3 In 2003 you elected we to represent Region 3 of the California Special Districts Association. As that representative I was closely involved in the Proposition IA campaign. That constitutional amendment was passed in the November 2004 election with a resounding 83.6% of the votes. As your representative I bave attended all board meetings in Sacramento and annual CSDA Conferences as well as other Committee responsibilities. I am working with our Education Director to arrange for convenient locations to satisfy the legislative mandate for all Special District Board members to complete Ethics Training. I was appointed to and serve on the CSDA Recruitment Committee and Planning Committee. T was elected to the CSDA Finance Corporation Board. The following is a partial list of the boards and committees I have served on or am currently serving on. Current Commitments: Moss Lauding Harbor District — Vice Chair and Past Board Chair Monterey Regional Water Pollution Control Agency — Chair LA.FCO — Special District Alternate Member CSDA — Region 3 Representative/Monterey County SDA Member Moss Landing Sanitation District Advisory Committee — Chair North Monterey County Water Issues Committee — Co -Chair North Monterey County Citizens Advisory Coalition — Member Past Commitments: Moss Landing General Plan Update Advisory Committee — Chair North Monterey County Coastal Land Use Advisory Committee Monterey County Grand Jury Monterey County Mental health Advisory Board I am a candidate for the Special District Representative and would appreciate your vote. Peggy Shirrel Ph.D Moss Landing Harbor District Candidate Statement for Larry Wilson Ensuring Representation for all Special Districts: The independence of Special Districts in California is paramount and it is critical that all special districts, especially Northern California and Bay Area special districts, have a voice at the Board. The CSDA Board of Directors is currently lacking Northern California representation in certain areas, which I can fill. Currently there are NO water supply representatives from Northern California and NO flood protection representative statewide on the CSDA Board of Directors. It is vital that there is representation in light of the current water infrastructure needs and dangers of flooding which can have serious impacts statewide. Water touches every aspect of all special districts. Changing Misconceptions of Special Districts: The need for representation is not limited to just water resources. I understand that the stability of revenues for special districts is an ongoing challenge with the state legislature. We need to ensure that local property tax revenues stay with special districts and that we continue to actively lobby against legislation that shifts revenues away from special districts. It is important to continue to work together to increase public awareness of the purpose and function of special districts to augment the work of local governments and to serve the public. I have led efforts with my board to lobby aggressively with legislators for the rights of special districts and will do the same as a CSDA board member. Experience: • Current chair of the Santa Clara Valley Water District Board of Directors • 30+ years of surface and groundwater management experience • Current treasurer /secretary for the Santa Clara County Special Districts Association • Board of director for the Association of California Water Agencies, Region 5, and the San Luis Delta Mendota Water Authority I respectfully ask for your vote. Russ Belleci, age 70, married 46 years 1 son, 2 grandchildren, retired from United States Streel as Instrument Technician with 34 years service and my wife is a retired teacher. In school I was active with the International Relations club and graduated from D.V.C. with an AA degree and served in the U.S.A.R., Presidio, San Francisco -Army Harbor Craft. I have served with various committees with the City of Antioch. My other experiences has been President of the Mt. Diablo Chapter Credit Union, Chief Financial Officer, Delta Science Center; Secretary of Trustees MVCAC, Contra Costa County Fish & Wildlife Committee, President Contra Costa Mosquito and Vector Control District. In our spare time we enjoy gardening with the Antioch Riverside Garden Club, and fish and boating on the Delta. I feel I'm qualified and have the energy to serve as California Special Districts Association (CSDA) Board of Directors. Thank you, Russ Belleci Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: g,a. ENGINEERING Type of Action: AUTHORIZE AGREEMENT Subject: AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A JOINT POWERS AGREEMENT WITH THE MT. VIEW SANITARY DISTRICT FOR THE M4 -A FORCEMAIN RECONSTRUCTION PROJECT, DISTRICT PROJECT 5410 Submitted By: Initiating Dept./Div.: Tad Pilecki, Principal Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: ffa.Aff.ml a &A James elly, General Manager ISSUE: The Board of Director's authorization is required for Joint Powers Agreements (JPA) with other public agencies that exceed $50,000. RECOMMENDATION: Authorize the President of the Board of Directors and the Secretary of the District to execute a Joint Powers Agreement with the Mt. View Sanitary District for the M4 -A Forcemain Reconstruction Project. FINANCIAL IMPACTS: Under the proposed JPA, the District will incur approximately $60,000 in costs. Costs associated with the lease of the construction staging area will be reimbursed by McGuire and Hester. ALTERNATIVES /CONSIDERATIONS: The Board could decline to authorize the agreement, which is not recommended. BACKGROUND: At the May 4, 2006 Board meeting, the Board awarded a construction contract for the M4 -A Forcemain Reconstruction Project to McGuire and Hester. Recently completed potholing of the proposed new forcemain alignment revealed large quantities of groundwater entering the excavations. The higher quantities of groundwater may be a direct result of the protracted rains this spring and the tidal influence on the Mt. View Sanitary District wetlands area. McGuire and Hester has notified the District that the greater quantities of groundwater in the proposed alignment is a changed site condition from the contract documents. To minimize the impacts of the groundwater on the forcemain construction, staff proposes to continue utilizing a pump owned by Mt. View Sanitary District located at the tide gate to Peyton Slough. Mt. View Sanitary District has the regulatory approvals to operate the pump. Operation of the pump during the months of July and August, in conjunction with the closure of the tide gate, has significantly dropped the water level in N: \PESUP \Cbradley \Position Papers\2006 \September \5410 -Authorize Agreement.doc Page 1 of 2 POSITION PAPER Board Meeting Date: September 7, 2006 subject AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A JOINT POWERS AGREEMENT WITH THE MT. VIEW SANITARY DISTRICT FOR THE M4 -A FORCEMAIN RECONSTRUCTION PROJECT, DISTRICT PROJECT 5410 the wetlands area. The cost to operate the pump is approximately $8,500 per month. Additionally, staff has worked out an agreement with Mt. View Sanitary District to lease a construction staging area for $1,500 per month. McGuire and Hester will reimburse the District the cost for leasing the staging area. The total expected expenditure for the pump operation, lease, and incidental costs incurred by Mt. View Sanitary District is estimated at $60,000. The M4 -A Forcemain Reconstruction Project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines, Section 15302, since it involves only replacement of an existing facility at substantially the same location with the same purpose and level of activity as the facility being replaced. A Notice of Exemption was, filed with Contra Costa County on November 25, 2003. RECOMMENDED BOARD ACTION: Authorize the President of the Board of Directors and the Secretary of the District to execute a Joint Powers Agreement with the Mt. View Sanitary District for the M4 -A Forcemain Reconstruction Project, District Project 5410. WPESUMbradley \Position Papers\2006 \September \5410 - Authorize Agreement.doc Page 2 Of 2 T C6 E d M c Q O U cz m 4--j U (D �O 0. C� .O U O L �r) V ) G 4-+ U U) cz -+—a .E m cn CD cz O m CD U cz 0— E CCU C: �U cz C: n M O U cn N 0 U U c U) O O CZ C/) E :3 .O -}- n W O W O ■ __ � U .cz U. 0 CD E C: CD C: Q O cz U O 1 aD .C: cI cz AM O cz O �rn V cz U L (D W 9 OD r raw. �r 0o U cz a E t0 O -1-� cz CD O OC Cl) cn U U to CD CD N O m CD J' O O N O m 0 it LO "4A C I i� LO JJ i t T 1 ' w T x� _ j' T �y 9F T l^ J' O O N O m 0 C� C� C� U' 0 -+--j L CL O a E n L 0 4-j C� 0 E L CD 0 0 0o ^cz W L cz r�� V , L 0 0 E L 0 0 L T ta 0 Y cz 4-0 • • • LO 0 U U .cz E W U O LL Q d' O O O .O CD 0. E O U 0 tD 0 0 N N a� .s� E a� O z 0 0 U U CD 0 N O O Q co .O O U 00 � N N N 0 U cz LL 0 Q C1� cz .cz E W U O LL Q d' O O O .O CD 0. E O U 0 tD 0 0 N N a� .s� E a� O z 0 0 U U CD 0 N O O Se co .O O U 00 N N 0 Co 0 Q U E O 0 � U ■ .cz E W U O LL Q d' O O O .O CD 0. E O U 0 tD 0 0 N N a� .s� E a� O z 0 0 U U CD 0 N O O co co 0 O 00 N N 0 Co N N O � n E � O Q. > tv O cn z I <C I m b- d- 2 O cz 4--a Cf) .cz E W U O LL Q d' O O O .O CD 0. E O U 0 tD 0 0 N N a� .s� E a� O z 0 0 U U CD 0 N O O 1 • i 4— O � O O m O � � O O +-a O C O U O Cf) CL.- Cn L -�-+ Cll Z3 CZ O � . aN [� i� Ali./ O --a � U aD Q cz cn (D CZ 3: U) O C O C: > O - (z CU -F--+ -F-+ O -- X W -�-. C: O 0 O E .0 O •cn CD � Q 4-� U CU O E O •- U O U U C: CU O O 0 cn U U c O O . - a) d' CC Lo I,- 0 U U OWN 0 40 0 Cn U U cfl 0 0 N d 07 O t, x t � J e k a U) U U U 0 0 0 M' N O J r F t x4 -wi 4- 0 T r-) C/) U U O O N O 0 ti. xi 1 e� a >. J T T fn v ! U U U O O N O O O r. by i O U i U) c O U a� a. U) C- 0 Cn U U U O O N O d') O O U Cn U U U O O N O d') O .low , t"4 11A, A . th, At v CY) T— (D 0 0 C\j rl- 0 CY) 0 i YAP 1 u 0/� c J U U U co 0 0 0 rn 0 �j u 0/� c J U U U co 0 0 0 rn 0 w LO T U U U O O N O m 0 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 9,a. HUMAN RESOURCES Type of Action: ADOPT RESOLUTION, APPROVE CONTRACT AND ADOPT MODIFICATIONS TO JOB CLASSIFICATION DESCRIPTION Subject: ADOPT RESOLUTION APPOINTING JAMES M. KELLY TO POSITION OF GENERAL MANAGER (M -05, $15,580 - $18,938), APPROVE EMPLOYMENT CONTRACT AND ADOPT MODIFICATIONS TO THE JOB CLASSIFICATION DESCRIPTION FOR THE POSITION OF GENERAL MANAGER Submitted By: C. Freitas, Human Initiating Dept. /Div.: Administration /H. R. Resources Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: M4��' I/ - ) C. Freitas A. ooda , Esq. (dames M. Kelly, General Manager ISSUE: Board approval is required to adopt a resolution and approve the employment contract with James M. Kelly for the position of General Manager, M -05 ($15,580 - $18,938) and to modify the job classification description for General Manager. RECOMMENDATION: Adopt a resolution and approve the employment contract and modifications to the job classification description retroactive to August 18, 2006. FINANCIAL IMPACTS: The salary and benefits of the General Manager are included in the District's Operations and Maintenance Budget for FY 2006 -2007. Mr. Charles Batts was at the top of the salary range when he retired; however, Mr. Kelly proposes to start at the beginning of the salary range for the General Manager. Consequently, the District will realize an approximate savings of $35,000 in this year's budget. ALTERNATIVES/CONS IDERATIONS: Provide staff with direction to modify the contract and /or job classification description. BACKGROUND: At the Special Board meeting of August 2, 2006, the Board voted to offer James M. Kelly the position of General Manager of the Central Contra Costa Sanitary District effective August 18, 2006 and directed staff to return to the Board with a proposed employment contract at its September 7, 2006 Board meeting. Staff engaged the services of District labor counsel to draft an employment contract for Board consideration. The draft contract has been sent to the Board under separate cover. Mr. Kelly is proposing to start at the beginning step of the M -05 salary range, which was the range adopted for the General Manager position in December 2000. Additionally, he is asking for the same cost -of- living adjustment and benefits as are provided for the Page 1 of 7 C: \Documents and Settings \cfreitas \My Documents \kelly jim employment contract ppr 8- 25- 06.doc POSITION PAPER Board Meeting Date: September 7, 2006 subject. ADOPT RESOLUTION APPOINTING JAMES M. KELLY TO POSITION OF GENERAL MANAGER (M- 05,$15,580 - $18,938), APPROVE EMPLOYMENT CONTRACT AND ADOPT MODIFICATIONS TO THE JOB CLASSIFICATION DESCRIPTION FOR THE POSITION OF GENERAL MANAGER Management Group. The term of the contract is annual and either party may terminate the contract with or without cause upon ninety days written notice. Mr. Kelly is a registered Engineer with a Masters degree in Sanitary Engineering from Oklahoma State University. He has been an employee of the District in various management capacities for twenty -two years. Preceding his District employment, Mr. Kelly worked with several engineering consulting firms, most notably Montgomery Watson, Tetra Tech and CH2M Hill. Also attached for Board consideration is a modified job classification description for the General Manager position. The changes were recommended by the former General Manager and have been agreed to by Mr. Kelly. Additions in language are indicated by underlines and deletions are noted by strike -outs. RECOMMENDED BOARD ACTION: Adopt the resolution appointing James M. Kelly to position of General Manager. Approve the proposed employment contract with James M. Kelly for the position of General Manager, M -05 ($15,580 - $18,938), retroactive to August 18, 2006 and adopt the modified job classification description. Page 2 of 7 CADocuments and SettingsVreitas\My Documents \kelly jim employment contract ppr 8- 25- 06.doc RESOLUTION NO. 2006- A RESOLUTION APPOINTING JAMES M. KELLY TO THE POSITION OF GENERAL MANAGER OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT, effective August 18, 2006, James M. Kelly is hereby appointed to the position of GENERAL MANAGER, at a monthly salary of $15,580, Range M -05 ($15,580 - $18,938); and BE IT FURTHER RESOLVED that James M. Kelly shall serve as the Chief Executive Officer of the Central Contra Costa Sanitary District and is hereby authorized and empowered to fulfill the duties of that position. PASSED AND ADOPTED this 7th day of September, 2006, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: President of the District Board of the 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 7 CENTRAL CONTRA COSTA SANITARY DISTRICT Effective: =3119908 /18/06 Range: M -05 Respirator Class: 3 GENERAL MANAGER DEFINITION Plan and manage the affairs of the Sanitary District, direct the staff in all functions and operations, and do all related work as required. SUPERVISION RECEIVED AND EXERCISED Receive policy direction from the District Board of Directors. Exercise direct supervision over department directors and other staff as desired. EXAMPLES OF ESSENTIAL DUTIES - Duties may include, but are not limited to, the following: Provide sound, ethical leadership to the staff of the District. Establish and organize the departments and functions of the District. Oversee and direct the general financial planning, policy, and budgeting of the District. Draft and recommend rules, regulations, fees, and charges for adoption by the Board including specifications and requirements controlling the construction, repair, maintenance, and operation of sewage systems, recycled water system and Household Hazardous Waste Collection Facility. Administer and enforce policies and programs of the Sanitary District, as approved by the District Board, including the direction and supervision of administrative and management personnel concerning the administration, engineering, construction, operation, safety, and maintenance of the Sanitary District. Attend District Board meetings and provide information, current and historical data, reports, and advice as requested. Be responsible for and direct the preparation of the District's annual budget and control authorized expenditures of the District. Confer with private individuals, firms, organizations, and local, state, and federal agencies in the implementation and coordination of programs, projects, and various activities. Represent the District at a variety of meetings and conferences conducted by civic and Page 4 of 7 CENTRAL CONTRA COSTA SANITARY DISTRICT General Manager (Continued) community organizations, technical groups, and legislative bodies. EXAMPLES OF ESSENTIAL DUTIES Act as Executive Director of Central Contra Costa Sanitary District Facilities Financing Authority. Demonstrate a commitment to recruit, hire and retain a diverse workforce. Interview applicants and recommend appointments, promotions, and special assignments_ far administFatiye and management staff. Review incoming and outgoing correspondence and reports prepared by staff. Perform related duties as required. MINIMUM QUALIFICATIONS Knowledge of: Modern management and leadership skills and practices. Local, state, and federal regulations and laws governing the management, construction, operation, safe and maintenance of a sanitary district. The fundamentals of municipal finance, budgeting, and accounting. Materials, processes, and equipment involved in the construction of sewage systems, treatment and disposal facilities, and related appurtenances. The fundamentals of modern environmental engineering principles; field and office practices. Good organization and office procedures. Ability to: Continuously know and observe the management and engineering field, remember the history of the agency and profession, and understand concepts and issues described in the normal course of business. Intermittently analyze proposals, plans, and positions of staff or consultants; identify problems and opportunities; interpret communication from the Board and staff; problem solve as the need arises; and explain issues to the Board and staff. K Page 5 of 7 CENTRAL CONTRA COSTA SANITARY DISTRICT General Manager (Continued) Understand and analyze financial and accounting statements: oversee budget preparation. Oversee labor relations and labor contract issues. Coordinate work and direction from District Counsel. Ability to: Sit at desk and in meetings for long periods of time on a continuous basis. Intermittently twist to reach equipment- surrounding desk, and perform simple grasping and fine manipulation; use telephone, and write or use a keyboard to communicate through written means. Coordinate and administer the activities of the District. Delegate work to others, direct them in the course of such work, require the ethical conduct of the District's business, and create a cooperative and effective working relationship among subordinates. Appraise people and situations accurately to meet and deal successfully with the public, engineers, contractors, and developers. Implement an effective course of action and get along well with others. Be resourceful, possess initiative, tact, and good judgment in management, engineering, and operational senetFurt*eF,,-matters. Experience and Education: Any combination equivalent to experience and education that could likely provide the required knowledge and abilities would be qualifying. A typical way to obtain the knowledge and abilities would be: Experience Fifteen years of broad and complex management experience, at least ten of which must have been in a responsible capacity involving the management, planning, and operation of sanitary sewage systems, treatment facilities, recycled water system and related facilities. Education 3 Page 6 of 7 CENTRAL CONTRA COSTA SANITARY DISTRICT General Manager (Continued) Equivalent to a bachelor's degree from an accredited college or university, with major work in business or public administration, engineering or a related field. A Master of Business or Public Administration or Master of Science degree in Engineering is desirable. Licenses and Certificates: Possession of a valid California Driver's License. 4 Page 7 of 7 l \.o-. JUNE 3% 2006 PRE -AUDIT FINANCIAL STATEMENTS OPERATIONS & MAINTENANCE FUND SELF - INSURANCE FUND co W N z W M IL X Z W Zpo Q W O WZ� :) W Z GC > W Q O. LL M M 0 � M W J m m �0 co c°o Vi e- N to Ya. Z cc O J N N cl CY0 ti Xdam' dM N r N co � CD W 00 CD M N (, G a O O m ER q ER E9 `O C O D. M CD K W CD N v o, 0 c w m c �o �v a) F0- I0 OC Li EXPENSE CATEGORIES UNDER / (OVER) BUDGET FISCAL YEAR 2005 -2006 ($000) Variance Labor Expense $1,692 Chemicals 41 Utilities (111) Repairs & Maintenance 41 Hauling & Disposal 45 Outside Services (312) Other 262 TOTAL SAVINGS NAADMINSUP\ADMIN \RATCLIFF\Exp Categories Budget Overhead FY 05- 06.doc O O N w 0 O Z M LL Z W Z W O = Z v U) Z OC .Q U. LL! J 5. W J � Q v LL 0 0--. W W --� J m co Q 0Q LL LL Z m co C:j J N Q �H �a N co N C7 O N � O I f� C-6 6 O r 8 O M v O fA 40 �A M 0 to M t4 8 �A M 0 to o M N 0�0 cn �I w CD O N v EA 0) 0 v LL LL y U ,A C � \V C C 0 a W O LL V > a o d W m a E a� W 0 m Z W 2 W O w 0. 2 J Q H a a U to 0 O O N LL F- O CL W w CO) D H Q U) 0 Z W Q W co 0 0 N ti L E co I 0 O w G. a 9 D W w D Z W 0.. x W J a UL Q v 0 °o N LL Cro E m Q 0 O N O M 00 M � 0 O Ch O O co o °o t� a " M O ti r r N M 'q O co T-- CV U. 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U F, U 3 L (D d s � O Q � w N O U A C O� cu N � c C O E c V ccp O N O a) � U N j a) — maa)iE V c_ W LO m LO 69 a C M Nm Ln N LL } 69 t0 o as 0c O 0 co R co 3 cli U O co CL a� c O N O H N V � d 'o a L CL � L a� v a� U U a) O Q Z ti ti LO C LO M M It M LO T- d9 O O 0 N_ co _H 3 f- M LO T- L Ili co le w LO M Irl o 0 cn � O H O O a E L a) LV O L 'a n. U F, U 3 L (D d s � O Q � 0 0 N LL O O p O O CD V 00 �O O 00 N 69. V F... V Q a 9 O O p 0 Z O N tG LL 00 J Q m O 6 ti to IM- FL Q L) y LLi C� LO N O N d p �• > Q Z LU •- •- SOMME C� C� v F- W Z 0 0 N LL W J m J_ Q Q 0 Z LL J Q FL Q V to O O O O N LL O O N r O O 0 O ti C LO U C c0 c� m C m H O O 0) N W c co U c LL. .Q cu U CD O O N LL O O O O o L IR �O U o c O cu N Cu O m M O C W 0 0 0 C 0 ti co 0 c 0 U N �O L a c co a L cu a� F- co 0 0 N c0 cu) 0 9) co a 0 U Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 11.c. 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. Ratcli James M. Kelly, General Manager 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. Although no longer required, the annual rendering of a statement of investment policy to the District's 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. N:\ ADMINSUP\ADMIN \POSPAPER\Approve Investment Policy 09- 07- 06.doc Page 1 of 5 POSITION PAPER Board Meeting Date: September 7, 2006 subject REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY District Counsel and staff reviewed the 2006 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. N:\ ADMINSUP\ADMIN \POSPAPER\Approve Investment Policy 09- 07- 06.doc Page 2 of 5 Attachment CENTRAL CONTRA COSTA SANITARY DISTRICT STATEMENT OF INVESTMENT POLICY The investment policy of the Central Contra Costa Sanitary District is embodied in the following eleven sections: I. 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 N:\ ADMINSUP\ADMIN \POSPAPER\Approve Investment Policy 09- 07- 06.doc Page 3 of 5 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. N:\ ADMINSUP\ADMIN \POSPAPER\Approve Investment Policy 09- 07- 06.doc Page 4 of 5 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 year, commencing with the 2004 -2005 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 as a comparison. The weighted average of the portfolio will be calculated each month and compiled to determine the annual yield. Results of the comparison between the District's portfolio and the three month T -Bill benchmark will be reported to the Board annually. N:\ ADMINSUP\ADMIN \POSPAPER\Approve Investment Policy 09- 07- 06.doc Page 5 of 5 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 11.d. BUDGET AND FINANCE Type of Action: ADOPT APPROPRIATIONS LIMITS subject: ADOPT A RESOLUTION ESTABLISHING THE 2006 -2007 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 RECOMMENDED FOR BOARD ACTION: O D. Ratcliff . M raves l games M. KIAIYI General Manager 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 $65,891,846 for the 2006 -2007 fiscal year, in accordance with Article XIII B of the California Constitution; select the California per capita personal income percentage change for use in computing the appropriations limit. FINANCIAL IMPACTS: None ALTERNATIVES/CONSIDERATIONS: The appropriations limit could be calculated using the local assessment roll due to local non - residential construction of 2.7 percent as opposed to the California per capita personal income percentage change of 3.96. BACKGROUND: On August 3, 2006, 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, 2006, 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 California per capita personal income, which was the larger of the two percentages, for the calculation of the 2005 -2006 appropriations limit. This approach allowed for a larger limit on the District's proceeds of taxes. N :\ADMINSUP\ADMIN \POSPAPER\Adopt Appropriations Limits 09- 07- 06.doc Page 1 of 3 POSITION PAPER Board Meeting Date: September 7, 2006 Subject. ADOPT A RESOLUTION ESTABLISHING THE 2006 -2007 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION The County Assessor has determined the nonresidential construction index for 2006- 2007 to be 2.7 percent. The California per capita personal income percentage change is 3.96. The California per capita personal income percentage change of 3.96 is being used in the calculation of 2006 -2007 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 $65,891,846 for the 2006 -2007 fiscal year. The District has budgeted $10,987,320 of Ad Valorem Taxes for fiscal year 2006 -2007. Interest on these tax proceeds is estimated to be $200,000. Therefore, total tax proceeds plus interest will be approximately $11,187,320, which is well within the appropriations limit set for the 2006 -2007 fiscal year. RECOMMENDED BOARD ACTION: Adopt a resolution establishing the Sewer Construction Fund appropriations limit in the amount of $65,891,846 for the 2006 -2007 fiscal year, in accordance with Article XI II B of the California Constitution; select the California per capita personal income percentage change for use in computing the appropriations limit. N :\ADMINSUP\ADMIN \POSPAPER\Adopt Appropriations Limits 09- 07- 06.doc Page 2 of 3 RESOLUTION NO. A RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2006 -2007 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 2006 -2007 to be $65,891,846; 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 $65,891,846 for the fiscal year ending June 30, 2007, based upon the selection of the California per capita personal income percentage change. PASSED AND ADOPTED this 7th day of September 2006, 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 N :\ADMINSUP\ADMIN \POSPAPER\Adopt Appropriations Limits 09- 07- 06.doc Page 3 of 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 7, 2006 No.: 11,e, BUDGET AND FINANCE Type of Action: APPROVE RESOLUTION Subject: APPROVE A BOARD RESOLUTION TO ADOPT THE REVISED SECTION 457(b) GOVERNMENTAL PART -TIME, SEASONAL AND TEMPORARY EMPLOYEES (PST) DEFERRED COMPENSATION PLAN DOCUMENT Submitted By: Initiating Dept./Div.: Debbie Ratcliff, Controller Administrative / Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: r D. Rat . My graves James M elly, General anager ISSUE: Board authorization is needed to adopt the revised Section 457(b) Governmental Part-Time, Seasonal And Temporary Employees (PST) Deferred Compensation Plan Document. RECOMMENDATION: Approve a Board Resolution adopting the revised Section 457(b) Governmental PST Deferred Compensation Plan Document. FINANCIAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: Based on final regulations which were recently issued by the Internal Revenue Service governing 457(b) deferred compensation plans for part-time, seasonal, and temporary employees, the District is required to revise its Section 457(b) Governmental PST Deferred Compensation Plan Document. BACKGROUND: The District established a Section 457(b) Governmental PST Deferred Compensation Plan covering all part-time, seasonal, and temporary employees in July 1991 in response to new regulations that mandated participation in the social security system for public sector employees who were not members of a retirement system. Since participation in a Section 457 Deferred Compensation Plan, in which at least 7.5 percent of compensation is paid into the employee's account by the employee and /or employer, would meet the requirement for membership in a retirement system, a separate Deferred Compensation Plan was established for this purpose. The Plan is administered by the District's Deferred Compensation Plan Advisory Committee. The Internal Revenue Service recently issued final regulations governing Section 457(b) deferred compensation plans. The regulations cover various aspects of 457(b) deferred compensation plans and are effective retroactively to January 1, 2006, as specified by the regulations. An explanation of the substantive changes and a revised N :\ADMINSUPWDMIN \POSPAPER\Approve Resolution 457(b) 09- 07- 06.doc Page 1 Of 3 POSITION PAPER Board Meeting Date: September 7, 2006 subject. APPROVE A BOARD RESOLUTION TO ADOPT THE REVISED SECTION 457(b) GOVERNMENTAL PART -TIME, SEASONAL AND TEMPORARY EMPLOYEES (PST) DEFERRED COMPENSATION PLAN DOCUMENT plan document have been provided by Nationwide Retirement Solutions, Inc., and is attached. RECOMMENDED BOARD ACTION: Approve a Board Resolution adopting the revised Section 457(b) Governmental PST Deferred Compensation Plan Document. Page 2 of 3 N:\ ADMINSUP\ADMIN \POSPAPER\Approve Resolution 457(b) 09- 07- 06.doc RESOLUTION NO. A RESOLUTION ADOPTING THE REVISED SECTION 457(b) GOVERNMENTAL PART -TIME, SEASONAL, AND TEMPORARY (PST) DEFERRED COMPENSATION PLAN DOCUMENT WHEREAS, the Employer has part-time, seasonal, and temporary employees rendering valuable services; and WHEREAS, the Employer has established a Deferred Compensation Plan for such employees in lieu of withholding social security; and WHEREAS, a participant must contribute a minimum of 7.5 percent of compensation exclusively through payroll deduction; and WHEREAS, the Employer has determined that the continuance of the Deferred Compensation Plan meets the requirements of the Internal Revenue Service (IRS); and WHEREAS, amendments to the Internal Revenue Code have been enacted that require changes to the structure of and allow enhancements of the benefits of the Deferred Compensation Plan: NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Central Contra Costa Sanitary District hereby amends and restates the Section 457(b) Governmental PST Deferred Compensation Plan Document as of September 7, 2006, effective retroactively to January 1, 2006, as specified by the regulations. PASSED AND ADOPTED this 7th day of September 2006, 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: President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Kenton L. Alm District Counsel N:\A DMINSUP \ADMIN \RATCLIFF\Resolution - 457(b) Deferred Comp Plan 09- 07- 06.doc Page 3 of 3 Explanation of Substantive Changes The IRS issued model amendments incorporating the provisions of Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the final regulations, and other pertinent IRS rulings and related legislation. Although the model amendments are for guidance only and do not have the effect of law, they have been incorporated into your 457(b) governmental Plan to the extent applicable. The following is a brief description of modifications to the Plan document consistent with the final 457(b) regulations, the 457(b) model amendments, subsequent IRS guidance, proposed regulations, and other pertinent legislation. The specific Plan section is included so that you can refer to the Plan document. The Plan Document will be effective January 1, 2006. ARTICLE I Definitions Account Balance — Account balance is a new term adopted by the IRS in the model amendments. The account balance is defined as the bookkeeping account maintained for each participant in the Plan. Within the account balance are sub - accounts, such as Plan Sponsor contributions, eligible rollover account(s), and plan -to -plan transfers into the Plan. Beneficiaries have separate account balances. [Section 1.01(c)] Includible ComFensation —This Plan adopts the model amendments' definition of includible compensation, to determine 100% of includible compensation contribution limit. Includible compensation is defined as W -2 compensation adjusted for elective deferrals. [Section 1.01 (m)] Definition of Suouse — The Plan adopts the definition of spouse under the federal Defense of Marriage Act (DOMA), which is a person of the opposite sex who is a husband or wife. [Section 1.01 (u')] ARTICLE II Election to Defer Compensation Deferrals During Leaves of Absence and Disability — Participants on leave of absence and participants who are disabled may continue to make deferrals to the extent that compensation continues to be paid. Disability benefits do not constitute a continuation of compensation. [Sections 2.07 and 2.08] ARTICLE III Limitations on Amounts Deferred Aggmzation with Other 45701 Plans — The 2003 final regulations require aggregation of 457(b) governmental plan contributions whether or not the plans are related. If the participant is contributing to an unrelated 457(b) governmental plan as well as to your 457(b) Plan and the contributions cause the participant to exceed the limits, the plans will not lose their tax- favored status. The Plan places the responsibility on the participant to provide participation information to the Plan Sponsor to monitor annual deferral limits. [Section 3.021 Correction of Excess Deferrals — The model amendments permit the Plan to unilaterally correct excess deferrals during the plan year. Nationwide will distribute the excess deferrals at your direction as soon as administratively practicable. [Section 3.031 Deferrals from Certain Sick Pay, Vacation Pay, and Back Pad — The proposed regulations recently issued by the IRS regarding Internal Revenue Code, as amended, Section 415 include a proposed amendment to Treasury Regulations 1.457 -4(d) regarding deferrals of sick, vacation and back pay for former employees. Such deferrals may be made within 2 '/2 months following severance from employment. This applies also to compensation paid to participants who are permanently and totally disabled, and compensation paid to participants relating to qualified military service under IRS Code section 414(u). [Section 3.041 ARTICLE IV Plan Sponsor Contributions Plan Sponsor Contributions — Although not included in the model amendments, the Plan continues to permit the Plan Sponsor to make contributions should it desire to do so. [Section 4.011 ARTICLE V Distribution of Benefits Benefit Distributions under Annuity — The model amendments assume that assets in an eligible 457(b) governmental plan are held in a trust. However, this Plan and the Internal Revenue Code permit the use of a trust, custodial agreement and /or an annuity contract. ARTICLE VI Eligible Rollovers and Plan -to -Plan Transfers Sub Account for Eligible Rollover Contributions — IRS Revenue Ruling 2004 -12 permits distributions of rollovers to the extent such rollovers are maintained in a separate account. The Plan maintains separate accounting for rollovers into the Plan and such rollovers are eligible for in- service distributions. [Section 6.01(c)] ARTICLE VIII Investment of Deferred Amounts Annuity Contract— All annual deferrals are invested in the Nationwide Group Fixed Annuity Contract. The required minimum annual deferral for defined contribution Social Security Replacement plans is 7.5% of a participant's compensation, or as otherwise required by law. All deferrals are on a pre -tax basis. ARTICLE XI Miscellaneous Non- Assignabili — 457(b) governmental plan assets remain non - assignable. With certain exceptions, such assets cannot be transferred. However, the model amendments permit the Plan to attach the assets of a participant or beneficiary to pay a federal income tax levy. Under the Bankruptcy Abuse Protection and Consumer Protection Act of 2005, assets in an eligible 457(b) plan may be exempted from bankruptcy proceedings. [Sections 11.01 and 11.02] Mistaken Contributions — The model amendments extends and adopts the mistake -of -fact rule found in IRS Revenue Ruling 91 -4 applicable to ERISA qualified plans. Although not subject to ERISA, 457(b) governmental plans are permitted by the IRS to refund mistaken contributions within one year after the payment of the mistaken contribution. [Section 11.031 NATIONWIDE RETIREMENT SOLUTIONS, INC. DEFERRED COMPENSATION PLAN AND TRUST AGREEMENT FOR PART -TIME, SEASONAL, AND TEMPORARY EMPLOYEES AMENDED AND RESTATED PLAN DOCUMENT (FICA - Substitute Plan or OBRA Plan) Effective January 1, 2006 The Plan consists of the provisions set forth in this document, and is applicable to each Public Employee who is required to participate in the Plan. The Plan is effective as to each such Public Employee upon the date he becomes a Participant by entering into and filing with the Administrator the Acknowledgement Form /Card referred to herein, or, in the case of a Takeover Plan, the Plan Sponsor's execution of an Entity Authorization Form. ARTICLE I Definitions 1.01. The following terms shall, for purposes of this Plan, have the meaning set forth below. (a) ACKNOWLEDGEMENT FORM /CARD means the application to the Administrator to participate in the Plan. (b) ADMINISTRATOR means Nationwide Retirement Solutions, Inc. (c) ACCOUNT BALANCE means the bookkeeping account maintained with respect to each Participant which reflects the value of the deferred Compensation credited to the Participant, including the Participant's Annual Deferrals, the earnings or losses of the Participant's account (net applicable account expenses and fees) allocable to the Participant. The Account Balance includes any Plan Sponsor contributions, any Eligible Rollover Accounts(s), any plan -to -plan transfers, and any account established for a Beneficiary after a Participant's death. If a Participant has more than one designated Beneficiary at the time of the Participant's death, then a separate account shall be established and maintained for each Beneficiary. (d) ANNUAL DEFERRAL means the amount of Compensation deferred by a Participant during a calendar year of Compensation and any contributions by the Plan Sponsor to the Participant's account. The minimum amount deferred into the Account Balance must equal at least 7.5% of Participant's Compensation, or such other minimum amount as shall be required for the Plan to be considered a retirement system under IRC Section 3121 (b) (7)(F) and Treas. Reg. 31.3121(b)(7) -2. All Participant Compensation deferred shall be invested into the Nationwide group fixed annuity. The Annual Deferral amounts deferred by a Participant or contributed by the Plan Sponsor are on a pre -tax basis. (e) BENEFICIARY means the person(s) properly designated by a Participant under Article VII, or, if none, the Participant's estate, which is entitled to receive benefits under the Plan after the death of the Participant. (f) COMPENSATION means all cash compensation for services to the Plan Sponsor, including salary, wages, fees, commissions, bonuses, and overtime pay that is includible in the Public Employee's gross income for the calendar year, plus amounts that would be cash Compensation for services to the Plan Sponsor includible in the Public Employee's gross income for the calendar year but for a Compensation reduction election under IRC Sections 125, 132(0, 401(k), 403(b), or 457(b), including an election to defer Compensation under Article II Election to Defer Compensation of the Plan. (p) ELIGIBLE RETIREMENT PLAN means an individual retirement account described in IRC Section 408(a), individual retirement annuity described in IRC Section 408(b), a qualified trust described in IRC Section 401(a), an annuity plan described in IRC Section 403(a) or 403(b), or an eligible governmental plan described in IRC Section 457(b). (h) CUSTODIAN means any bank, trust company, or financial institution that may be appointed by the Employer to have custody of some or all of the assets of the Plan. (i) ELIGIBLE ROLLOVER ACCOUNT means the separate bookkeeping account(s) maintained by the Administrator within the Plan for a Participant for amounts of eligible rollover contributions under Section 6.01 Eligible Rollover Contributions to the Plan. (j) ELIGIBLE ROLLOVER DISTRIBUTION means an Eligible Rollover Distribution as defined in IRC Section 402(c)(4), including Eligible Rollover Distributions to a surviving Spouse under IRC Section 402(c)(9). (k) EMPLOYEE means all part -time, seasonal, or temporary employees of the Employer any portion of whose income is subject to withholding of federal income tax. (1) EMPLOYMENT PERIOD means a period from January 1 through December 31 of the same year, except that the first Employment Period of an Employee hired on any date other than January 1 shall be the period beginning with the date of employment and ending on December 31 of the same year. (m) INCLUDIBLE COMPENSATION means a Public Employee's actual wages in box 1 of Form W -2 for a given year for services performed for the Plan Sponsor, but subject to a maximum of $200,000 (or such higher maximum as may apply under IRC Section 401(a)(17)) and increased (up to the dollar maximum) by any Compensation reduction election under IRC Sections 125, 1320, 401(k), 403(b), or 457(6), including an election to defer Compensation under Section 2.02 Election Required for Participation. The amount of Includible Compensation shall be determined without regard to community property laws. (n) INVESTMENT FUND means a fund established by the Public Employer as a convenient method of setting aside a portion of its assets to meet its obligations under the Plan for the Trust of custodial account, without distinction between principal and income. (o) IRC means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to sections of the Code are to such sections as they may from time to time be amended or renumbered. (p) OBRA means the Omnibus Budget Reconciliation Act of 1990, as now in effect or as hereafter amended. (q) PARTICIPANT means any Public Employee who is subject to IRC Section 3121(b)(7) (F), as amended, and the regulations thereunder, and who must participate under this Plan by signing the Acknowledgement Form /Card. (r) PLAN means the Part-Time, Seasonal, and Temporary- Deferred Compensation Plan for Public Employees as set forth in this plan document and as it may be amended from time to time. (s) PLAN SPONSOR means the county, municipality, or other instrumentality of the State, which is an eligible governmental employer pursuant to IRC Section 457(e)(1), for which services are performed by Public Employees, and which participates in this Plan. (t) PLAN YEAR means the calendar year in which the Plan becomes effective, and each succeeding calendar year during the existence of the Plan. (u) PUBLIC EMPLOYEE means any person who receives any type of Compensation from the Plan Sponsor for services rendered to the Plan Sponsor (including, but not limited to, elected or appointed officials and salaried employees). (v) SEVERANCE FROM EMPLOYMENT means the date on which the Participant dies, retires or otherwise has a Severance from Employment with the Plan Sponsor. (w) SPOUSE means a person of the opposite sex who is a husband or wife, as defined under Title 28, Chapter 15, Section 1738 of the United States Code. (x) TAKEOVER PLAN shall mean this Plan when established by a Plan Sponsor to replace an existing FICA- Substitute or OBRA plan. (y) TRUSTEE /CUSTODIAN means the entity or person hereafter appointed by the Public Employer to act as Trustee or Custodian of the Trust in accordance with the Plan. (z) VALUATION DATE means each business day /the last day of the calendar month /the last day of the calendar quarter /each December 31. 1.02 Gender and Plurals. Whenever used herein, the masculine gender shall include the feminine and the singular shall include the plural unless the provisions of the Plan specifically require a different construction. ARTICLE II Election to Defer Compensation 2.01 Eligibility to Participate — New Public Employees. A new Public Employee shall, as a condition of employment participate in the Plan by signing and filing with the Administrator an Acknowledgement Form /Card and thereby consenting to a reduction of salary by the Annual Deferral amount specified in the Acknowledgement Form /Card. Allocations to the Participant's Account Balance must equal at least 7.5% of the Participant's Compensation, or such other minimum amount as shall be required for the Plan to be considered a retirement system under IRC Section 3121(b)(7)(F) and Treas. Reg. 31.3121(b)(7) -2, and the reduction in the Participant's salary shall begin immediately thereafter. 2.02 Eligibility to Participate — Current Public Employees. A Public Employee who is newly eligible to participate in the Plan shall, prior to becoming eligible to participate in the Plan, sign and file with the Administrator an Acknowledgement Form /Card and thereby consent to a reduction of salary by the Annual Deferral amount specified in the Acknowledgement Form /Card. Allocations to the Participant's Account Balance must equal at least TM,o of the Participant's Compensation or such other minimum amount as shall be required for the Plan to be considered a retirement system under IRC Section 3121(b)(7)(F) and Treas. Reg. 31.3121(b)(7) -2, and the reduction in the Participant's salary shall begin no earlier than the first pay period commencing during the first month after the date on which the Acknowledgement Form /Card is filed with the Administrator. 2.03 Takeover Plans. If the Plan is a Takeover Plan, a Public Employee who participated in the predecessor plan shall become a Participant in the Plan upon the Plan Sponsor's execution of the Entity Authorization Form. Allocations to each such Participant's Account Balance must equal at least 7.5% of the Participant's Compensation, or such other minimum amount as shall be required for the Plan to be considered a retirement system under IRC Section 3121(b)(7)(F) and Treas. Reg. 31.3121(b)(7) -2, and the reduction in the Participant's salary shall begin immediately thereafter. 2.04 Information Provided by the Participant. Each Public Employee enrolling in the Plan should provide to the Plan Sponsor at the time of initial enrollment, and later if there are any changes, any information necessary or advisable for the Plan Sponsor to administer the Plan, including, without limitation, whether the Public Employee is a Participant in any other eligible plan under IRC Section 457(b). 2.05 Amendment of Participation Elections. Subject to other provisions of the Plan, and if permitted by the Plan Sponsor, the Participant may revise his participation elections. 2.06 Amendment of Annual Deferral Election. A Participant may amend the amount of Compensation to be deferred by filing with the Administrator an amendment on a form and in the procedural manner approved by the Administrator, subject to the minimum Annual Deferral requirements under the Plan. Any amendment which increases or decreases the amount of Annual Deferrals for any pay period shall be effective only if an agreement providing for such an amendment is entered into before the beginning of the month in which the pay period commences. Any amendment of the Annual Deferrals shall be effective prospectively only and only if the amendment does not reduce the allocations to the Participant's Account Balance below 7.5% of the Participant's Compensation, or such other minimum amount as shall be required for the Plan to be considered a retirement system under IRC Section 3121(b)(7)(F) and Treas. Reg. 31.3121(b)(7) -2. 2.07 Leaves of Absence. Unless a deferral election is otherwise revised, if a Participant is absent from work by leave of absence, Annual Deferrals under the Plan shall continue to the extent that Compensation continues. 2.08 Participant Disability. A disabled Participant may elect to defer Compensation during any portion of a period of disability to the extent the Participant has actual Compensation (not imputed compensation and not disability benefits) from which to defer to the Plan and has not had a Severance from Employment, as determined by the Plan Sponsor. 2.09 Protection of Persons Who Serve in a Uniformed Service. A Public Employee whose employment is interrupted by qualified military service under IRC Section 414(u) or who is on a leave of absence for qualified military service under IRC Section 414(u) may elect to make additional Annual Deferrals upon resumption of employment with the Plan Sponsor equal to the maximum Annual Deferrals that the Public Employee could have elected during that period if the Public Employee's employment with the Plan Sponsor had continued (at the same level of Compensation) without the interruption or leave, reduced by the Annual Deferrals, if any, actually made for the Public Employee during the period of the interruption or leave. This right applies for five (5) years following the resumption of employment (or, if sooner, for a period equal to three times the period of the interruption or leave). ARTICLE III Limitations on Amounts Deferred 3.01 Basic Annual Limitation. The maximum amount of the Annual Deferral under the Plan for any calendar year shall not exceed the lesser of (i) the Basic Annual Limitation or (ii) the Participant's Includible Compensation for the calendar year. The Applicable Dollar Amount is the amount established under IRC Section 457(e) (15) applicable as set forth below: 2002 $11,000 2003 $12,000 2004 $13,000 2005: $14,000 2006: $15,000, adjusted for cost -of- living after 2006 to the extent provided under IRC Section 415(d). 3.02 Special Rules. For purposes of this Article III, the following rules shall apply: (a) Participant Covered By More Than One Eligible Plan. If the Participant is or has been a Participant in one or more other eligible plans within the meaning of IRC Section 457(b) for a given year, then this Plan and all such other plans shall be considered as one plan for purposes of applying the foregoing limitations of this Article III. For this purpose, the Plan Sponsor shall take into account any other such eligible plan established by the Plan Sponsor. (b) Disregard Excess Deferrals. For purposes of Section 3.01 Basic Annual Limitation, an individual is treated as not having deferred Compensation under the Plan for a prior taxable year to the extent Excess Deferrals under the Plan are distributed, as described in Section 3.03 Correction of Excess Deferrals. 3.03 Correction of Excess Deferrals. (a) If Annual Deferrals credited to a Participant's Account Balance during the current Plan Year exceed the limitations described above as determined by the Plan Sponsor, the Administrator shall return the excess as directed by the Plan Sponsor as soon as administratively practicable after the Administrator is notified that there is an Excess Deferral. (b) If the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described above as determined by the Plan Sponsor, or the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described above when combined with other amounts deferred by the Participant under another eligible deferred compensation plan pursuant to IRC Section 457(b) then the Annual Deferral, to the extent any excess of the applicable limitation (adjusted for any income or loss in value, if any, allocable thereto), shall be distributed as soon as administratively practicable by the administrator at the determination and direction of the Plan Sponsor. 3.04 Deferrals of Sick, Vacation, and Back Pay under an Eligible Plan. A Participant who has not had a Severance from Employment may elect to defer accumulated sick pay, accumulated vacation pay, and back pay under an eligible plan. Such amounts may be deferred for any calendar month only if an agreement providing for the deferral is entered into before the beginning of the month in which the amounts would otherwise be paid or made available and the Participant is a Public Employee on the date the amounts would otherwise be paid or made available, in accordance with Sections 2.01 Eligibility to Participate — New Public Employees, and 2.02 Eligibility to Participate — Current Public Employees, of this Plan. In addition, to the extent permitted by law, deferrals may be made for former Public Employees with respect to Compensation described in Treas. Reg. 1.415(c)- 2(e)(3)(ii) (relating to certain Compensation paid within 2' /s months following Severance from Employment), Compensation described in Treas. Reg. 1.415(c)- 2(g)(4) (relating to Compensation paid to Participants who are permanently and totally disabled), and Compensation relating to qualified military service under IRC Section 414(u). ARTICLE IV Plan Sponsor Contributions 4.01 The Plan Sponsor may contribute to the Plan for Participants. Plan Sponsor contributions shall vest at the time such contributions are made. Plan Sponsor contributions shall apply toward the maximum deferral limits in the Plan Year that such contributions are made. ARTICLE V Distribution of Benefits 5.01 Benefit Distributions at Retirement or Other Severance from Employment. A Participant may elect to commence distribution of benefits at any time after retirement or other Severance from Employment. Distributions from the Plan may not be made to a Participant earlier than: (a) the calendar year in which the Participant attains age 70' /s; or (b) the calendar year in which the Participant retires or otherwise has a Severance from Employment. All irrevocable elections of a benefit commencement date by a Participant or a Beneficiary made prior to January 1, 2002 and defaulted distributions (other than a defaulted distribution to an annuity option) may be voided at the election of the Participant or the Beneficiary. In no event may distribution of benefits commence later than the date described in Section 5.03(b) Required Beginning Date. All irrevocable elections of a Benefit Commencement Date made by Participants prior to January 1, 2002 and defaulted distributions (other than a defaulted distribution to an annuity option) may be voided at the election of the Participant. 5.02 Forms of Distribution — Benefit Payment Options. Benefits shall be paid in accordance with the payment option elected by the Participant. Payment, method of payment, and settlement options are available as provided by each of the available investment specifications. The Participant shall elect the method of payment based upon the options then available under the Plan, including but not limited to lump sum distributions, periodic payment by fixed amount, periodic payment by fixed time period, partial lump sum payment or purchased annuity. A Participant or Beneficiary who has chosen a payment option, other than the purchased annuity option, shall have the ability to change his payment option subject to any restrictions or limitations imposed by the Plan, the Administrator, an investment option provider, any regulatory agency, or as otherwise required by law. 5.03 Required Minimum Distributions. All distributions under the Plan must comply with IRC Section 401(a)(9) and the regulations issued thereunder. The provisions of this Section 5.03 will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. The term Designated Beneficiary as used in this Section 5.03 shall have the meaning set forth in Tress. Reg. 1.401(a)(9) -4. (a) Requirements of Treasury Regulations Incorporated into Plan. All distributions required under this Section 5.03 will be determined and made in accordance with the Treasury Regulations under promulgated under IRC Section 401(a)(9). (b) Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's required beginning date, which is to begin no later than April I following the calendar year in which the Participant attains age 70' /z or has a Severance from Employment, whichever is later. (c) Death of Participant before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (1) If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant dies, or by December 31 of the calendar year in which the Participant would have attained age 70 '/s, if later. (2) If the Participant's surviving Spouse is not the Participant's sole Designated Beneficiary, distributions to the Designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (3) If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant's death, and there are no other Designated Beneficiaries, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (4) If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary and the surviving Spouse dies after the Participant but before distributions to the surviving Spouse begin, this Section 5.03 will apply as if the surviving Spouse were the Participant. (d) Required Minimum Distributions during Participant's Lifetime. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: (1) the quotient obtained by dividing the Participant's Account Balance by the distribution period in the Uniform Lifetime Table set forth in Treas. Reg. 1.401(a)(9) -9, using the Participant's age as of the Participant's birthday in the distribution calendar year; or (2) if the Participant's sole Designated Beneficiary for the distribution calendar year is the Participant's Spouse, the quotient obtained by dividing the Participant's Account Balance by the number in the Joint and Last Survivor Table set forth in Treas. Reg. 1.401(a)(9) -9, using the Participant's and Spouse's attained ages as of the Participant's and Spouse's birthdays in the distribution calendar years. (e) Death On or After Date Distributions Begin and Participant Survived by Designated Beneficiary. (1) If the Participant dies on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's Designated Beneficiary, determined as follows: The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (2) If the Participant's surviving Spouse is the Participant's sole Designated Beneficiary, the remaining life expectancy of the surviving Spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving Spouse's age as of the Spouse's birthday in that year. For distribution calendar years after the year of the surviving Spouse's death, the remaining life expectancy of the surviving Spouse is calculated using the age of the surviving Spouse as of the Spouse's birthday in the calendar year of the Spouse's death, reduced by one for each subsequent calendar year. (3) If the Participant's surviving Spouse is not the Participant's sole Designated Beneficiary, the Designated Beneficiary's remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (4) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no Designated Beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed, in accordance with Section 7.01 Acceptance of Beneficiary Designation by Administrator, for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (f) Death before Date Distributions Begin and Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's Account Balance by the remaining life expectancy of the Participant's Designated Beneficiary. (1) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant's death, distribution, in accordance with Section 7.01 Acceptance of Beneficiary Designation by Administrator, of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (g) Death of the Surviving Spouse before Distributions to Surviving Spouse are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving Spouse is the Participant's sole Designated Beneficiary, and the surviving Spouse dies before distributions are required to begin, this Section 5.03 will apply as if the surviving Spouse were the Participant. (h) Election of Payment Option. If a Participant or Beneficiary fails to elect a payment option that meets the requirements of IRC Section 401(a)(9), the Administrator will initiate such a distribution. A Participant or Beneficiary who has chosen a payment option, other than an annuity option, shall have the ability to change his or her payment option. 5.04 Order of Priorities. This Section 5.04 has been prepared in accordance with Treasury Regulations promulgated under IRC Section 401(c)(9). To the extent there is a conflict between Section 5.03 Required Minimum Distributions, or this Section 5.04 and the IRC, the provisions of the IRC and applicable Treasury Regulations shall prevail. For any calendar year, a Beneficiary may elect distribution of a greater amount (not to exceed the amount of the remaining Account Balance in lieu of the amount calculated using the formula set forth in Section 5.01 Benefit Distributions at Retirement or Other Severance from Employment). 5.05 Death Benefit Distributions. If the Participant dies before the benefits to which he is entitled under the Plan have been paid or exhausted, then the remaining benefits payable under the Plan shall be paid to his Designated Beneficiary.. The Beneficiary shall have the right to elect the time and form of distribution of such benefits, subject to the limitations set forth in the Plan. 5.06 Amount of Account Balance. Except as provided in Section 5.02 Forms of Distribution — Benefit Payment Options, the amount of any payment under this Article V shall be based on the amount of the Account Balance on the preceding Valuation Date. ARTICLE VI Eligible Rollovers and Plan -to -Plan Transfers 6.01 Eligible Rollover Contributions to the Plan. (a) Incoming Rollover Contributions. A Participant who is a Public Employee and who is entitled to receive an Eligible Rollover Distribution from another Eligible Retirement Plan may request to have all or a portion of the Eligible Rollover Distribution paid to the Plan, provided, (1) the Eligible Rollover Distribution is made entirely in the form of U.S. dollars, and, (2) the Participant demonstrates to the Administrator's satisfaction that the amount is a qualifying Eligible Rollover Distribution under IRC Sections 402(c)(4), 403(a)(4), or 408(d)(3). (b) Definition of Eligible Rollover Distribution. For purposes of Section 6.01(a) Incoming Rollover Contributions, an Eligible Rollover Distribution means any contribution of all or any portion of a Participant's benefit under another Eligible Retirement Plan to the Plan, except that an Eligible Rollover Distribution does not include: (1) any installment payment for a period of 10 years or more, (2) any distribution made as a result of an Unforeseeable Emergency, or (3) For any other distribution, the portion, if any, of the distribution that is a required minimum distribution under IRC Section 401(a)(9). (c) Separate Account for Eligible Rollover Contributions. The Plan shall establish and maintain for the Participant an Eligible Rollover Account for any Eligible Rollover Distribution paid to the Plan from any Eligible Retirement Plan that is not an eligible governmental plan under IRC Section 457(b). In addition, the Plan shall establish and maintain for the Participant an Eligible Rollover Account for any Eligible Rollover Distribution paid to the Plan from any Eligible Retirement Plan that is an eligible governmental plan under IRC Section 457(b). 6.02 Permissive Rollovers to an Eligible Retirement Plan. A Participant or the surviving Spouse of a Participant who is entitled to an Eligible Rollover Distribution may elect, at the time and in the manner prescribed by the Administrator, to have all the Account Balance paid directly to an Eligible Retirement Plan specified by the Participant in a direct rollover. 6.03 Plan- to-Plan Transfers to the Plan of Eligible Governmental 457(b) Assets. (a) Permissive Plan- to-Plan Transfers. At the direction of the Plan Sponsor, the Administrator may permit a class of Participants who are Participants in another eligible governmental IRC Section 457(b) Plan to transfer assets to the Plan as provided herein. Such a transfer is permitted only if the other Plan provides for the direct transfer of each Participant's interest therein to the Plan. Transfers from other eligible deferred compensation Plans (as defined in IRC Section 457) to the Plan will be accepted at the Participant's request if such transfers are in cash. (b) Effect of Transfers on Annual Deferral Limitations. Any such transferred amount shall not be subject to the limitations of Section 3.01 Basic Annual Limitation as an Annual Deferral, provided however, that the actual amount deferred during the calendar year under both Plans shall be taken into account in calculating the maximum Annual Deferral for that year. The amount so transferred shall be credited to the Participant's Account Balance and shall be held, accounted for, administered, and otherwise treated in the same manner as an Annual Deferral by the Participant under the Plan. (c) Required Documentation for Transfers to the Plan. The Administrator may require such documentation from the other Plan as it deems necessary to effectuate the transfer in accordance with IRC Section 457(e)(10) and Treas. Reg. 1.457 -10(b) and to confirm that the other Plan is an eligible governmental plan as defined in Treas. Reg. 1.457 -2(f). 6.04 Plan -to -Plan Transfers from the Plan to another Eligible Governmental 457(b) Plan. (a) Outgoing Plan -to -Plan Transfers Pursuant to Severance of Employment. At the direction of the Plan Sponsor, the Administrator may permit a class of Participants and Beneficiaries to elect to have all of their Account Balance transferred to another eligible governmental plan within the meaning of IRC Section 457(b) and Treas. Reg. 1.457 -2(f). A transfer is permitted under this Section 6.04(a) for a Participant only if the Participant has had a Severance from Employment with the Plan Sponsor and is a Public Employee of the entity that maintains the other eligible governmental 457(b) Plan. Further, a transfer is permitted under this Section 6.04(a) only if the other eligible governmental 457(b) plan provides for the acceptance of plan -to -plan transfers with respect to the Participants and Beneficiaries and for each Participant and Beneficiary to have an amount deferred under the other plan immediately after the transfer at least equal to the amount transferred. (b) Plan -to -Plan Transfers to Voluntary 457 Plan. If a Participant is no longer eligible to participate in the Plan, but elects to participate in the Plan Sponsor's voluntary Section 457 deferred compensation plan, and such other plan accepts transfers, the value of the Participant's Account Balance under the Plan may be transferred to the Plan Sponsor's voluntary Section 457 deferred compensation plan at the time and in the manner prescribed by the Administrator. (c) Limitation of Liability. Upon the transfer of assets under this Section 6.04, the Plan's liability to pay benefits to the Participant or Beneficiary under this Plan shall be discharged to the extent of the amount so transferred for the Participant or Beneficiary. The Administrator may require such documentation from the receiving plan as it deems appropriate or necessary to comply with this Section 6.04 (for example, to confirm that the receiving plan is an eligible governmental plan under paragraph (a) of this Section 6.04, and to assure that the transfer is permitted under the receiving plan) or to effectuate the transfer pursuant to Treas. Reg. 1.457- 10(b). ARTICLE VII Designation of BENEFICIARY 7.01 Acceptance of Beneficiary Designation by Administrator. The Participant shall have the right to file with the Administrator, a signed, written beneficiary or change of beneficiary form designating the person or persons who shall receive the benefits payable under the Plan in the event of the Participant's death, provided that a married Participant may designate someone other than his /her Spouse as his /her Beneficiary only with his /her Spouse's consent.. The designation may be made, revoked and /or changed only by a written instrument signed by the Participant and filed with the Administrator prior to the Participant's death. A person must survive the Participant to be his /her Beneficiary. If a Participant designates more than one person as his /her Beneficiary, unless the Participant provides otherwise, all persons of the same designation (i.e. "primary" or "contingent'D shall share the Participant's Account Balance equally. If the Participant fails to designate a Beneficiary or if no designated Beneficiary survives the Participant, his /her Beneficiary shall be his /her Spouse if he is married, or, if not, his /her estate.. If the Participant dies without having a valid beneficiary form on file, the benefits will be paid to the Participant's estate or as otherwise required by applicable state law. A change in the Beneficiary designation shall take effect when the election is accepted by the Administrator, and must be on a form and in the procedural manner approved by the Administrator. 7.02 Participant Obligation to File Beneficiary Designation Form. The Participant accepts and acknowledges that he has the burden of executing and filing with the Administrator prior to the Participant's death a proper beneficiary designation form. If the Participant dies without having a valid Beneficiary form on file with the Administrator, the benefits will be paid to the Participant's estate. ARTICLE VIII Investment of Deferred Amounts 8.01 Investment Funds. The assets of the Plan and each Participant's and Beneficiary's interest herein, shall be invested and re- invested in accordance with the provisions of the Plan. The Public Employer shall establish one or more investment funds for the purpose of investing Annual Deferrals credited to Participant Account Balances. The Public Employment may cause funds contributed or deferred under this Plan to be commingled for investment purposes only, with funds deferred under an eligible deferred compensation plan sponsored by any other governmental authority acceptable to the Public Employer (the "Other Plan's so long as the investment funds under the PST Plan and the Other Plan are substantially similar to the investment funds under this Plan and so long as adequate records are maintained to enable the identification of the portion of such funds and earning thereon that pertain to each Plan. 8.02 Designation for Investment. Deferred Compensation amounts shall be delivered by the Plan Sponsor to the Administrator for investment as designated by the Plan Sponsor in the investment option selected by the Plan Sponsor. The Plan Sponsor shall be under no obligation to invest the Annual Deferrals as specified by the Participant. 8.03 Participant Account Credits and Debits. All interest, dividends, charges for premiums and administrative expenses, and changes in value due to market fluctuations applicable to each Participant's Account Balance shall be credited or debited to the account. All dividends will be reinvested in the associated investment option. ARTICLE IX Administration of Plan 9.01 Exclusive Benefit of Participants and Beneficiaries. The Plan Sponsor may at any time amend, modify or terminate the Plan under Section 12.01 Amendment and Termination, without the consent of the Participant or any Beneficiary; provided, however, that the assets of the Plan shall be held for the exclusive benefit of Participants and Beneficiaries at all times. All amendments shall become effective forty-five (45) days after the issuance of notice of the amendments by the Administrator to the Plan Sponsor. No amendments shall deprive a Participant of any of the benefits to which he is entitled under this Plan with respect to Annual Deferrals credited to his Account Balance prior to the effective date of the amendment. 9.02 No Third Party Interest in Plan. Any companies that may issue any policies, contracts, or other forms of investment media used by the Plan Sponsor or specified by the Participant, are not parties to this Plan and such companies shall have no responsibility or accountability to any Participant or Beneficiary with regard to the operation of this Plan. 9.03 Tax Consequences of Participation in Plan. The Plan Sponsor and the Administrator do not represent or guarantee that any particular federal or state income, payroll, personal property, or other tax consequence will occur because of participation in this Plan. The Participant or Beneficiary should consult with his own representative regarding all questions of federal and state income, payroll, personal property, or other tax consequences arising from participation in this Plan. 9.04 Appointment of Agents. The Administrator shall have the power to appoint agents to act for and in the administration of this Plan and to select depositories for the assets of this Plan. 9.05 Construction. This Plan shall be construed, administered, and enforced according to the Constitution, laws of the state in which the Plan Sponsor resides, and the IRC. 9.06 Total Agreement. This Plan and any properly adopted amendment or modification shall constitute the total agreement or contract between the Plan Sponsor and the Participant regarding the Plan. No oral statement regarding the Plan may be relied upon by the Participant. 9.07 Effect of Adopted Plan Amendment. This Plan and any properly adopted amendment or modification shall be binding on the parties hereto and their respective heirs, administrators, trustees, successors, and assignees and on all Participants and Beneficiaries. ARTICLE X Authority of Plan Sponsor and Administrator 10.01 Authority Binding on Participants and Beneficiaries. The Plan Sponsor, the Administrator, or their respective agents shall be authorized to resolve any questions of fact necessary to decide the Participant's right under this Plan and such decision shall be binding on the Participant and Beneficiary, provided, however, that assets of the Plan shall be held for the exclusive benefit of Participants and Beneficiaries at all times. 10.02 Authority to Interpret Plan. The Plan Sponsor, the Administrator, or their respective agents shall be authorized to construe the Plan and to resolve any ambiguity in the Plan. 10.03 Investment Losses. The Participant specifically agrees not to seek recovery against the Plan Sponsor, the Administrator or any other employee, contractee, or agent of the Plan Sponsor or Administrator for any loss sustained by a Participant or a Beneficiary for the non - performance of their duties, negligence, or any other misconduct of the above -named persons, except that this paragraph shall not excuse fraud or wrongful taking by any person. 10.04 Suspension of Benefit Payments. The Plan Sponsor, the Administrator, or their respective agents, if in doubt concerning the correctness of their action in making a payment of a benefit, may suspend the payment until satisfied as to the correctness of the payment or the identity of the person to receive the payment or allow the filing in any State court of competent jurisdiction, a suit in such form as they consider appropriate for a legal determination of the benefits to be paid and the persons to receive them. The Plan Sponsor shall comply with the final orders of the court in any such suit and all Participants, Beneficiaries, and Alternate Payees consent to be bound thereby insofar as it affects the benefits payable under this Plan or the method or manner of payment. 10.05 Hold Harmless. The Plan Sponsor, the Administrator, and their respective agents are hereby held harmless from all court costs and all claims for the attorney's fees arising from any action brought by any Participant or Beneficiary under this Plan or to enforce his rights under this Plan, including any amendment, modification or termination hereof. 10.06 Litigation. The Administrator shall not be required to participate in any litigation concerning the Plan except upon written demand from the Plan Sponsor. The Administrator may compromise, adjust or effect settlement of litigation when specifically instructed to do so by the Plan Sponsor. ARTICLE XI Miscellaneous 11.01 Non - Assignability. Except as provided in Section 11.02 IRS Levy, the interests of each Participant and Beneficiary under the Plan are not subject to the claims of the Participant's or Beneficiary's creditors; and neither the Participant nor any Beneficiary shall have any right to sell, assign, transfer, or otherwise convey the right to receive any payments hereunder or any interest under the Plan, which payments and interest are expressly declared to be non - assignable and non - transferable. Furthermore, in accordance Section 522 of the Bankruptcy Abuse Protection and Consumer Protection Act of 2005 ("the Act's, retirement funds that are in a fund that is exempt from taxation under IRC Section 457 may be exempted from an individual's property estate for purposes of the Act. 11.02 IRS Levy. Notwithstanding Section 11.01 Non - Assignability, the Administrator may pay from a Participant's, Beneficiary's, or Alternate Payee's Account Balance the amount that the Administrator finds is lawfully demanded under a levy issued by the Internal Revenue Service with respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against the Participant or Beneficiary. 11.03 Mistaken Contributions. If any contribution (or any portion of a contribution) is made to the Plan by a good faith mistake of fact, then within one year after the payment of the contribution, and upon receipt in good order of a proper request approved by the Administrator, the amount of the mistaken contribution (adjusted for any income or loss in value, if any, allocable thereto) shall be returned directly to the Participant or, to the extent required or permitted by the Administrator, to the Plan Sponsor. ARTICLE XII Amendment and Termination 12.01 Amendment and Termination. The Plan Sponsor may at any time modify, amend, suspend, or terminate the Plan in whole or in part (including retroactive amendments) or cease deferring Compensation pursuant to the Plan for some or all Participants. In the event of such an action, the Plan Sponsor shall deliver to each affected Participant a notice of such modification, amendment, or termination or a notice that it shall cease deferring Compensation; provided, however, that the Plan Sponsor shall not have the right to reduce or affect the value of any Participant's Account Balance or any rights accrued under the Plan prior to such modification, amendment, termination, or cessation. 12.02 No Effect of Plan on Employment of Participants. Neither the establishment of the Plan nor any modification thereof, nor the establishment of an account, not any agreement between the Plan Sponsor and the Administrator nor the payment of any benefits, shall be construed as giving to any Participant or other person any legal or equitable right against the Plan Sponsor except as herein provided, and in no event shall the terms of employment of the Public Employee, Independent Contractor, or Participant be modified or in any way affected. 12.03 Interpretation. This Plan is intended to be an eligible deferred compensation Plan under IRC Section 457, and shall be interpreted and administered in a manner consistent with IRC Section 3121 and regulations thereunder. This Plan may be amended to the extent that it may be necessary to conform to the Plan to the requirements of IRC Sections 457 and 3121, the regulations thereunder, and any other applicable law, regulation, or ruling, including amendments that are retroactive to the effective date of the Plan. In the event that the Plan is deemed by the Internal Revenue Service to be administered in a manner inconsistent with the Internal Revenue Code, the Plan Sponsor shall correct such administration. ARTICLE XIII Prior Plan If the Plan Sponsor has already accepted the PST Deferred Compensation Program and adopted an eligible deferred compensation plan, as defined by IRC Section 457 and is defined as a retirement system under IRC Section 3121 and the regulations thereunder, then the Plan Sponsor intends that this Plan shall amend and restate the Prior Plan. In such event, this Plan shall apply to all Participants in the Prior Plan on the effective date hereof, and also to each Public Employee who elects, or is required, to participate in this Plan on and after the effective date hereof. ARTICLE XIV Trustee /Custodian Provisions 14.1 Trust Requirement. All assets of the Plan, including all Compensation deferred into the Plan, property and rights purchased with such amounts, and all income attributable to such amounts, property or rights, shah (until made available to the Participant or the Participant's Beneficiary) be held for the exclusive benefit of the Participants and their Beneficiaries, as described in IRC Section 457(8). 14.2 Authority of Trustee /Custodian. The Trustee /Custodian shall manage and administer the trust or custodial account, as applicable, without distinction between principal and income, as a non - discretionary Trustee /Custodian, subject to the directions of the IRC. The Trustee or Custodian shall not have any discretion or authority with regard to the investment of the assets of the trust or custodial account, as applicable and shall act solely as a directed Trustee /Custodian of such assets in accordance with the directions of Participants and Beneficiaries as provided herein. The Trustee /Custodian shall have all powers and authority necessary to comply with such directions and with the Trustee's /Custodian's responsibilities under the Plan. 14.3 Accounting. The Trustee /Custodian shall maintain or cause to be maintained suitable records, data, and information relating to the Trustee's /Custodian's functions hereunder. Within ninety (90) days after the close of each fiscal year of the trust or custodial account, as applicable, and at more frequent intervals as agreed to by the Public Employer, and within ninety (90) days after the removal or resignation of the Trustee /Custodian, the Trustee /Custodian shall render to the Employer a written statement and account showing in reasonable summary the assets and liabilities of the trust or custodial account, as applicable, and transactions engaged in during the preceding fiscal year or period. Unless the Public Employer shall have filed with the Trustee /Custodian written exceptions or objections to any such statement and account within ninety (90) days after receipt thereof, the Public Employer shall be deemed to have approved such statement and account; and in such case or upon written approval by the Public Employer of any such statement and account, the Trustee /Custodian shall be released and discharged with respect to all matters and things embraced in such statement and account as though it had been settled by a decree of a court of competent jurisdiction in an action or proceeding in which the Public Employer, all other necessary parties and all persons have a beneficial interest in the trust or custodial account were parties, except for any actions resulting from the Trustee's /Custodian's bad faith, fraud, gross negligence, or willful misconduct. Notwithstanding the foregoing provisions of the subsection, however, the Trustee /Custodian shall have the right to have a judicial settlement of the Trustee's /Custodian's account and in any proceeding for such a judicial settlement or for instructions in connection with the trust or custodial account, the only necessary party in addition to the Trustee /Custodian shall be the Public Employer, and no Participant or other person having or claiming any interest in the trust or custodial account shall be entitled to any notice or service of process (except as required by law). 14.4 Resignation or Removal of Trustee /Custodian. The Trustee /Custodian acting hereunder may resign at any time by giving sixty (60) days' prior written notice to the Public Employer, which notice or time period may be waived by the Public Employer. The Public Employer may remove the Trustee /Custodian at any time upon sixty (60) days' prior written notice to the Trustee /Custodian, which notice or time period may be waived by the Trustee /Custodian. In case of the resignation or removal of the Trustee /Custodian, the Employer shall appoint a successor Trustee /Custodian. 14.5 Standard of Care. The Trustee /Custodian shall discharge the Trustee's /Custodian's duties with respect to the trust or custodial account (a) solely in the interest of, and for the exclusive purposes of providing benefits to Participants and Beneficiaries and defraying reasonable expenses of administering the Plan and (b) with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and like aims. ARTICLE XV Effective Date This Plan shall be effective as of January 1, 2006.