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HomeMy WebLinkAbout3/20/2008 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2008 No.: 4.c. Consent Calendar Type of Action: RECEIVE ANNUAL REPORT subject: RECEIVE THE 2007 ANNUAL REPORT OF THE DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE Submitted By: Debbie Ratcliff, Controller Initiating DeptJDiv.: Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Ratcl' graves James M. Keiji, General Mana er ISSUE: The Deferred Compensation Plan Advisory Committee (Committee) respectfully submits its 2007 Annual Report. RECOMMENDATION: Receive the Annual Report of the Deferred Compensation Plan Advisory Committee for 2007 and provide any comments to staff. FINANCIAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: None BACKGROUND: The Board of Directors approved the establishment of the Committee in January 1982. The scope of activities of the Committee includes: • Establishing internal administrative procedures • Educating participants regarding the Plan • Reviewing emergency withdrawal requests • Reviewing investment performance of the Plan • Submission of an annual report to the Board of Directors and Plan participants The Committee is made up of the following Departmental representatives: Debbie Ratcliff, Controller — Chairperson David Rolley, Accounting Technician III — Administrative Michael Penny, Associate Engineer — Engineering Roseanna Barrett, Administrative Secretary — Collection System Operations Matthew Mahoney, Maintenance Planner — Plant Operations RECOMMENDED BOARD ACTION: Receive the Annual Report of the Deferred Compensation Plan Advisory Committee for 2007 and provide any comments to staff. N:W000UNTING \GMTEMPI \DEFERRED COMP\ 2005 \gnnual.Report.2005.Def.Comp.doc Central Contra Costa Sanitary District DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE ANNUAL REPORT JANUARY 2007 — DECEMBER 2007 The Deferred Compensation Plan Advisory Committee (the Committee) was established by the Board of Directors to facilitate the internal administration of the District's Deferred Compensation Plan. The scope of the Committee's activities encompass the following: • Establish internal District administrative procedures within the provisions of the Deferred Compensation Plan document. • Educate participants regarding the plan provisions by issuing a handbook which summarizes the Deferred Compensation Plan and responding to questions from participants. • Review accountability by the Program Administrators, Hartford Life Insurance Company (Hartford), Nationwide Retirement Solutions, and ICMA Retirement Corporation (ICMA) and respond to participants' queries regarding accuracy or propriety of account balances. • Review participants' requests for emergency withdrawal of funds and make recommendations for acceptance or denial to the Board of Directors. • Review investment performance of the Deferred Compensation Plan on an annual basis. During the period of January 2007 through December 2007, the Committee addressed all of the activities included in its scope of responsibilities through the conscientious efforts of all of the Committee members. The performance of Hartford, Nationwide Retirement Solutions, and ICMA in administering the Deferred Compensation Plan during the 2007 report is considered to be satisfactory. The performance results of the Hartford, Nationwide Retirement Solutions, and IMCA stock and bond investments for the calendar year 2007 follow. NAACCOUNTING \GMTEMPI\DEFERRED COMP\ 20051Annual .Report.2005.Def.Comp.doc Please note the following when reviewing Plan results: ■ Market index benchmarks have been provided for comparative purposes only. These indexes reflect broad based changes in the market conditions based on average performance. Indices are unmanaged and reflect no fees or expenses and are not available for direct investment. ■ Rate of returns quoted by providers and fund managers include reinvestment of capital appreciation (depreciation), plus realized gain (losses), dividends and interest income. ■ All rate of return performance results are net of annual asset -based fees, which include fund managers fees and expenses, marketing fees and plan administrative fees. ■ In general, plan administrative fees are charged by the carriers and differ between the carriers. The basic plan administrative fees are as follows: Nationwide Retirement Solutions An annual plan administrative fee of .29 percent is deducted from the participants account and is based on the participant's account balance. ICMA There is no plan administrative fee. Hartford The plan administrative fee is .25 percent for all funds with the exception of the General Account. For additional information on fee charges, consult with your plan provider. The above information is general information. Additional fees may be incurred for other items such as transfers and withdrawals. See Attachment 1 to this report. Results shown represent past performance and are not a guarantee of future performance. Ask your Plan Representative for a current prospectus for each fund in which you are interested. The current prospectus presents more complete information about the fund including fund charges and expenses. Read it carefully before investing in that option under the Plan. NAACCOUNTINMGMTEMPI\DEFERRED COMP\2005 Wnnual.Report.2005.Def.Comp.doc Helpful Definitions ■ Balanced Fund is a mutual fund that invests in a combination of common stock, preferred stock, bonds and short term bonds, to provide both income and capital appreciation, while managing volatility and avoiding excessive risk. ■ Blue Chip Company is used in the context of general stock market investments. Large and creditworthy company. Company renowed for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. ■ Dollar Cost Averaging or Constant Dollar Plan is a method of purchasing securities by investing a fixed amount of money at set intervals. The investor buys more shares when the price is low and fewer shares when the price is high, thus reducing the average cost. ■ Dow Jones Industrial Average or DJIA is the best known U.S. index of stocks. It is comprised of 30 actively traded blue -chip stocks, primarily industrials, including stocks that trade on the New York Stock Exchange. The Dow, as it is called, is an indicator of how the largest U.S. companies are performing. Measuring the Down Jones Industrial Average is used to gauge the direction of the stock market. ■ Indexing is a passive instrument strategy consisting of the construction of a portfolio of stocks designed to track the total return performance of an index of stocks. ■ Lehman Brothers Bond Index is an unmanaged list of U.S. Treasury/Agency and investment grade corporate debt securities. It is used as a general measure of performance of fixed income securities. ■ MSCI Europe, Australia /Asia, and far East or EAFE index is the European, Australian, and Far East stock index, computed by Morgan Stanley Capital International. This index is used to measure the general performance of the international market. ■ Model Portfolio fund is a fund that consists of a combination of stocks, bonds and cash equivalents in a preset or predetermined ratio based on market risk tolerance. Model Portfolios are rebalanced, typically every quarter, to maintain adherence to the preset ratio. ■ Mutual Funds are pools of money that are managed by an investment company and regulated by the Investment Company Act of 1940. The investment company purchases securities which become jointly owned by its shareholders. The fund's portfolio is managed by a professional money manager. They offer investors a variety of goals depending on the fund and can invest in equity, debt, cash, real estate, options and futures. ■ NASDAQ (once an acronym for National Association of Securities Dealers Automated Quotation System) is a computerized system that provides price quotations to market participants about the more actively traded common stock issues in the over the counter market. This market is comprised of securities not listed on a stock or bond exchange. Large technology stocks have a major effect on this index value. The NASDAQ stock market is comprised of two separate markets, namely the NASDAQ National Market, which trades large, active securities and the NASDAQ Smallcap Market that trades emerging growth companies. The NASDAQ market includes approximately 5,000 common stocks in the system. ■ Standard & Poor's 500 or S &P 500 is an index of blue chip stocks, which measures changes in stock market conditions based on the average performance of 500 widely held common stocks. The S &P 500 is one of the most widely used benchmarks of U.S. equity performance. This index tracks industrial, transportation, financial and utility stocks with heavy emphasis on industrial companies. ■ Treasury Bill or T Bill is a discounted government security that matures in one year or less. It is a negotiable debt obligation issued by the U.S. government. CCCSD Deferred Comp Distribution BY ADMINISTRATOR AND INVESTMENT TYPE INVESTMikTTfP%" L',FN ®AR.Y -A�t EN, ED E ,ARSER 31, 2007 % NATIONWIDE RETIREMENT ICMA 457 ICMA 401(a) HARTFORD TOTAL $TACK '. 50.3% $6,005,546 $16,088,512 $8,747,506 $4,086,863 $34,928,426 BONd$ 2.1% 572,550 250,029 292,956 312,919 1,428,454 134 9DPUNDS 15.4% 942,171 5,518,151 4,114,984 90,980 10,666,287 SA,MN"l, ' 32.2% 2,843,603 11,894,807 4,546,598 3,077,155 22,362,163 TOTAL INVE$TMENTS'' 100.0% $10,363,869 $33,751,500 $17,702,043 $7,567,917 $69,385,330 CCCSD Deferred Comp Distribution BY ADMINISTRATOR December 31, 2007 HARTFORD 7,567,917 NATIONWIDE 10.9% $10,363,869 14.9% ICMA 401(a) $17,702,917 25.5% ICMA 457 $33,751,500 48.7% ■NATIONWIDE ■ ICMA 457 ❑ ICMA 401(a) ❑HARTFORD CCCSD Deferred Comp Distribution BY INVESTMENT TYPE December 31, 2007 SAVINGS $22,362,163 32.2% STOCK $34,928,426 50.3% BALANCED FUNDS BONDS $10,666,287 $1,428,454 15.4% 2.1 0 0 0 STOCK ■BONDS I-] BALANCED FUNDS ❑SAVINGS CCCSD Deferred Comp Stocks and Mutual Funds Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmarks MSCI Europe, Australia /Asia, and Far East (EAFE) 11.63% Dow Jones Industrial Average 6.40% Standard & Poor's 500 5.49% Nationwide - Source: Available Investment Options Without Plan Charges, less .29% Nationwide plan administration fee as of 12131107. Nationwide Large Cap Growth ** N/A Gartmore Total Return Fund A * ** N/A Janus Adviser Forty S 35.28% American Century Ultra Fund * 21.48% Federated Kaufmann Fund K 21.10% Brown Capital Management, Inc., Small Company 20.88% Fidelity Contrafund 19.51% EuroPacific Growth Fund 18.67% Fidelity Magellan Fund 18.54% Templeton Foreign Fund 16.95% Janus Fund 14.93% Vanguard Primecap 11.19% Growth Fund of America 10.66% Vanguard US Growth 9.86% AIM Mid Cap Core Equity A 9.61% Nationwide Fund A 7.36% Neuberger & Berman Socially Responsive 7.19% Oppenheimer Global Fund A 5.68% Investment Company of America 5.65% Vanguard Institutional Index 5.18% Washington Mutual Investors 3.68% JP Morgan Mid Cap Value A 2.07% Vanguard Windsor II 1.94% Fidelity Equity Income Fund 1.11% Fidelity Growth & Income Fund 0.45% DWS High Return Equity A -1.43% DFA U.S. Micro Cap Portfolio -5.51% Dreyfus Premier Small Cap Value R -8.89% * Fund closed effective 9/14/07, returns obtained from Hartford and adjusted for fee difference. ** Fund added effective 9/14/07, returns not provided * ** Now called Nationwide Fund A CCCSD Deferred Comp Stocks and Mutual Funds Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmarks MSCI Europe, Australia /Asia, and Far East (EAFE) 11.63% Dow Jones Industrial Average 6.40% Standard & Poor's 500 5.49% Nationwide (cont'd)- Source: Available Investment Options Without Plan Charges, less .29% Nationwide plan administration fee as of 12131/07. Asset Allocation Funds 29.25% Gartmore Investor Destinations Funds 18.71% Aggressive 5.60% Moderately Aggressive 5.89% Moderate 5.27% Moderately Conservative 5.50% Conservative 5.06% The Gartmore Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes. Balanced Funds Vanguard Wellington Fund 8.08% Fidelity Puritan Fund 5.88% Income Fund of America 3.48% Info only: (Existing balances will remain in the phased -out funds until moved by the participant.) Fidelity Independence Fund* 29.25% American Century Growth Fund* 18.71% American Century Select Fund* 21.41% Rate of return was obtained from Morningstar, less .29% Nationwide plan administration fee. Fund is no longer open to new investments, but Nationwide allows previous balances to remain. CCCSD Deferred Comp Stocks and Mutual Funds Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmarks MSCI Europe, Australia /Asia, and Far East (EAFE) 11.63% Dow Jones Industrial Average 6.40% Standard & Poor's 500 5.49% ICMA - Source: ICMA Retirement Corporation Fund Performance Report as of 12/3112007. Vantagepoint Funds VP International 12.46% VP Overseas Equity Index Class II 10.37% VP Growth 9.81% VP Growth & Income 5.98% VP Aggressive Opportunities 5.53% VP Broad Market Index Class II 5.35% VP 500 Stock Index Class II 5.22% VP Mid /Small Company Index Class II 5.20% VP Equity Income 3.76% Balanced Funds Vantagepoint Model Portfolio Funds VP All Equity Growth 7.75% VP Long Term Growth 7.74% VP Traditional Growth 7.03% VP Conservative Growth 6.57% VP Savings Oriented 6.15% Vantagepoint Milestone Portfolio Funds* VP Milestone 2040 7.23% VP Milestone 2035 7.25% VP Milestone 2030 7.11% VP Milestone 2025 7.17% VP Milestone 2020 7.17% VP Milestone 2015 6.88% VP Milestone 2010 6.43% VP Milestone Retirement 6.05% Other Balanced Funds VP Asset Allocation 6.25% VT Fidelity Puritan 6.17% Milestone funds, which became effective 2/5/05, automatically become more conservative as the account ages. Vantagepoint Funds (VP) are certain funds available through ICMA. These funds are sponsored by the ICMA Retirement Corporation and registered with the U.S. Securities and Exchange Commission. CCCSD Deferred Comp Stocks and Mutual Funds Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmarks MSCI Europe, Australia /Asia, and Far East (EAFE) 11.63% Dow Jones Industrial Average 6.40% Standard & Poor's 500 5.49% ICMA (cont'd) - Source: ICMA Retirement Corporation Fund Performance Report as of 12/31/2007. VantageTrust Mutual Fund Series VT American Century Ultra " 21.77% VT Rainier Small /Mid Cap Equity 21.46% VT Fidelity Contrafund 19.78% VT Fidelity Magellan 18.83% VT Fidelity Diversified International 16.03% VT Royce Premier 12.56% VT T. Rowe Price Growth Stock 10.12% VT Calvert Social Investment 9.94% VT Third Avenue Value 5.76% VT Lord Abbett Large Company Value 3.66% VT Gold Sacs Mid Cap Value 2.91% VT Templeton Growth A 2.19% VT T. Rowe Price Small Cap Value -0.31% VT T. Rowe Price Small Cap Stock -1.96% VT Fidelity Small Cap Retirement -2.65% VT American Century Value -5.20% VT Legg Mason Value FI -6.05% VT Hotchkis & Wiley Large Cap Value - 10.55% VT American Century Real Estate - 16.13% VantageTrust Mutual Fund Series (VT) invests in a third -party mutual fund which is not affiliated with the ICMA Retirement Corporation. Fund deleted as of 8/24/07. Rate of return taken from Hartford statement and adjusted for fee difference. CCCSD Deferred Comp Stocks and Mutual Funds Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmarks MSCI Europe, Australia /Asia, and Far East (EAFE) 11.63% Dow Jones Industrial Average 6.40% Standard & Poor's 500 5.49% Hartford - Source: Investment Choices Performance Plan Summary Statement as of 12131/2007. MFS Capital Opportunities* N/A Janus Twenty 35.60% MFS Utilities 27.26% Hartford International Opportunities 27.11% Janus Advisor International Growth 25.83% Fidelity Advisor Growth Opportunities 22.56% American Century Ultra Fund 21.52% Janus Enterprise 21.51% American Century International Growth 16.97% Hartford Capital Appreciation 16.54% Hartford MidCap 15.01% Hartford Small Company 13.94% Hartford Global Technology 13.58% Putnam International Opportunities 12.53% Franklin Small -Mid Cap Growth 11.39% MFS Massachusetts Investors Growth 11.23% AIM Small Capital Growth 11.11% Fidelity Advisor Growth & Income 10.87% Janus Worldwide 8.96% Putnam Global Equity 8.58% MSF Core Equity Fund 8.23% Hartford Dividend and Growth 7.99% AIM Technology 7.10% Dreyfus Premier Third Century 7.07% Hartford Global Health 5.86% Hartford Stock 5.64% Hartford Index 4.94% Putnam Vista 3.38% American Century Equity Income 1.54% DWS Growth & Income 0.54% American Century Income & Growth -0.54% AIM Leisure - 1.15% American Century Value - 5.44% Skyline Special Equities - 10.14% AIM Financial Services -23.11% �rgec wim mbt- tore t_gwty runo on ti /zz /ut. Balanced Funds Janus Balanced 9.88% Fidelity Advisor Balanced 7.95% Hartford Advisers 6.37% Dreyfus Life Time Growth & Income 5.52% Dreyfus Life Time Growth 4.80% Dreyfus Life Time Income 4.73% Calvert Social Balanced 2.50% CCCSD Deferred Comp Saving Performance Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmark 90 Day T -Bill 5.03% Nationwide - Average annual yield rate. Stable Value Fund 4.52% 5 YR CDs 4.01% 3 YR CDs 3.89% Liquid Savings 4.30% ICMA - Source: ICMA Retirement Corporation Fund Performance Report as of 1213112007. Vantagegoint Funds VP Money Market 4.75% Plus Funds Plus Fund (401a) 4.72% Plus Fund (457) 4.72% Vantagepoint Funds (VP) are certain funds available through ICMA. These funds are sponsored by the ICMA Retirement Corporation and registered with the U.S. Securities and Exchange Commission. Hartford - Source: Investment Choices Performance Plan Summary Statement as of 1213112007. Money Market 4.68% General Account 4.00% CCCSD Deferred Comp Bond Performance Calendar Year Ended December 31, 2007 Rate of Return ( %) Market Index Benchmark Lehman Aggregate Bond Index 7.00% Nationwide - Source: Available Investment Options Without Plan Charges, less .29% Nationwide plan administration fee as of 12131107. Vanguard Total Bond Index Adm 6.73% Bond Fund of America 3.09% DWS High Income Fund A 0.72% ICMA - Source: ICMA Retirement Corporation Fund Performance Report as of 12/3112007. VantaaeDOint Fund VP Inflation Protection Securities 9.64% VT PIMCO Total Return 8.81% VP Core Bond Index Class II 6.71% VT PIMCO High Yield 3.48% VantageTrust Mutual Fund Series (VT) invests in a third -party mutual fund which is not affiliated with the ICMA Retirement Corporation. Vantagepoint Funds (VP) are certain funds available through ICMA. These funds are sponsored by the ICMA Retirement Corporation and registered with the U.S. Securities and Exchange Commission. Hartford - Source: Investment Choices Performance Plan Summary Statement as of 12/3112007. Hartford Total Return Bond 4.41% Dreyfus Premier Core Bond 3.44% Putnam High Yield Advantage 3.18% Hartford Mortgage Securities 3.13% MFS High Income 1.46% CENTRAL CONTRA COSTA SANITARY DISTRICT SUMMARY OF FEES — ATTACHMENT 1 AS OF MARCH 2008 FEES CHARGED BY PROVIDERS (Based on account balance) Plan Fees Annual Plan Administrative Fee Fund Expenses Stable Value Fund (Total Fee Charged) 3 &5 YR CD's, and Liquid Savings Plus Fund Management General Account (Savings)* Model Portfolio Fund Fee FEES CHARGED BY THE FUND MANAGERS Fund Fee PROVIDERS NATIONWIDE ICMA HARTFORD 0.29% NONE 0.25 %* 0.49% N/A N/A 0.00% N/A N/A N/A 0.46% N/A N/A N/A 0.00% .81-.89% 0.60-1.11% N/A 0.05-1.95% 0.24-1.29% 0.43-1.55% These expenses are charged by the fund managers, which include Advisory Fees, 12b -1 Fees, Operating Expenses and Other Fees charged by the individual funds. These fees and expenses differ for each fund invested. As a general rule, the higher the potential reward, the higher the risk, the higher the fee. The reverse is also generally true, the lower the potential reward, the lower the risk, the lower the fee. * Hartford's General Account (Savings) is not subject to plan fees. N: ADMINTINANCE \Deferred Comp 2006 Summary.doc Page 13 of 13 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2008 No.: 4.d. Consent Calendar Type of Action: ESTABLISH PUBLIC HEARING DATE subject: ESTABLISH APRIL 17, 2008 AS THE DATE FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF "CAPACITY FEES" Submitted By: Jarred Miyamoto - Mills, Principal Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: Initiating Dept. /Div.: Engineering / Environmental Services vl-.*, oA- J. yamoto -Mills C. Swanson A. Farreir K. Alm Jam M. Kelly General Manager ISSUE: The District Code requires that a public hearing be held prior to the Board of Directors consideration of amendments to the Schedule of Capacity Fees. RECOMMENDATION: Establish April 17, 2008 as the date for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Capacity Fees. FINANCIAL IMPACTS: None by this action. If the staff recommendation to increase Capacity Fees is adopted by the Board of Directors following the public hearing, it is projected that approximately $630,000 in additional annual revenue will be generated in fiscal year 2008 -09 based on connection of 600 Residential Unit Equivalents (RUE) in the gravity zone and 750 RUE in the pumped zone (a total of 1350 RUE). ALTERNATIVES /CONSIDERATIONS: The Board of Directors may decline to establish the recommended public hearing date or may elect to choose a different date. However, a public hearing must be held if Capacity Fees are to be increased. If the hearing is held on April 17, 2008, the increased fees could take effect on July 1, 2008. BACKGROUND: Staff has completed its annual review of the District's Capacity Fee Program and has concluded that it would be appropriate to revise the fees to account for changes in the valuation of District assets and the number of current customers. The effect of implementing the staff recommendation would be to increase the Capacity Fee as follows: Fee Category Current (2007 -08) Proposed % change Gravity Zone Fee $4,523 per RUE $4,923per RUE +8.8% Pumping Zone Fee $5,990 per RUE $6,509 per RUE +8.7% N: \ENVRSEC \Position Papers \Miyamoto- Mills\2008 \PP Set Hearing Capacity Fees 3- 20- 08.doc POSITION PAPER Board Meeting Date: March 20, 2008 subject: ESTABLISH APRIL 17, 2008 AS THE DATE FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF "CAPACITY FEES" Staff also proposes to conduct a public hearing on a related recommendation to revise the Schedule of Environmental and Development - Related Rates and Charges at the same Board meeting (April 17, 2008). Staff proposes that a coordinated outreach program be conducted before the public hearing date to inform and solicit input from interested customers regarding both the proposed Capacity Fees and the proposed Environmental and Development - Related Rates and Charges. RECOMMENDED BOARD ACTION: Establish April 17, 2008 as the date for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Capacity Fees. N:\ENVRSEC \Position Papers \Miyamoto- Mi11s\2008 \PP Set Hearing Capacity Fees 3- 20- 08.doc Central Contra Costa Sanitary District March 14, 2008 TO: HONORABLE MEMBERS OF THE BOARD OF DIRECTORS VIA: JAMES M. KELLY, GENERAL MANAGER ANN FARRELL, DIRECTOR OF ENGINEE NG bW CURT SWANSON, ENVIRONMENTAL SERVICES DIVISION MANAGER FROM: JARRED MIYAMOTO- MILLS, PRINCIPAL ENGINEER KURT DARNER, DEVELOPMENT SERVICES SUPERVISOR SUBJECT: PROPOSED CAPACITY FEE INCREASE AND REVISED SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES At the March 20th Board Meeting staff will ask the Board to set April 17, 2008 as the date for public hearings to receive comments and to consider adopting proposed changes for Capacity Fees, and Environmental and Development - Related Rates and Charges. Staff will discuss the proposed changes with the Finance Committee at its March 17th meeting. After the Board sets hearing dates, staff proposes to conduct an outreach program to contact and engage customers with an interest in the fees, rates and charges. Notices of the public hearing will be posted on the board in the Headquarters Office Building Lobby and published in the Contra Costa Times. In addition, about 350 letters with detailed information about each proposal will be mailed to those companies and individuals who have specifically requested notice of fee increases, the Home Builder's Association of Northern California, the Engineering and Underground Contractors' Association, the Associated Building Contractors Golden Gate Chapter, current permit applicants, and contractors, engineers and developers who regularly work in the District. Informal meetings to discuss the fee proposals will be held one to two weeks before the public hearing. In the past, few customers have attended these meetings since they have generally accepted our fee setting methodology and considered the proposed changes in fees, rates and charges to be modest. Copies of the draft letter and the two reports comprising the proposed outreach mailing are attached for your information, review and comment. After incorporating any review comments you may have, we plan to mail out these letters after the Board sets the hearing date. If you have any questions or would like to make comments on the outreach materials, please bring them up at either the March 20th Board Meeting, or call Jarred Miyamoto -Mills at (925) 229 -7335. JM2: Attachments ** LETTERHEAD ** ORAFT March 21, 2008 Dear Interested Customer: FAX: (925) 228 -4624 JAMES KELLY General Manager KENTON L. ALM Counsel for the District (510) 808 -2000 Elaine Boehme Secretary of the District PROPOSED INCREASE FOR CAPACITY FEES, AND REVISION OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES Central Contra Costa Sanitary District ( CCCSD) staff has recommended to its Board of Directors that capacity fees be increased, and that development - related rates and charges be revised to be current with our present cost of doing business. These fees were last increased on July 1, 2007. Reports discussing each of the two proposals are enclosed for your information. If approved, the new capacity fees, and development - related rates and charges will be effective on July 1, 2008. Capacity Fees: The proposed capacity fees have been calculated so that new customers "buy in" to the current value of all CCCSD assets. This approach was first adopted in 2001, and was used in 2007, when the fees were last increased. Using this approach, each new customer's share in the current value of District facilities, equipment, land and fund balances is "equalized" with existing District customers at the time of connection. This is done by dividing the current value of all CCCSD assets by the current number of connections and charging this amount for new connections. The current and proposed capacity fees for each new residential unit and "Residential Unit Equivalent (RUE)" are: Fee Gravity Service Pumped Service Current (before July 1, 2008) $4,523 per RUE $5,990 per RUE Proposed (effective July 1, 2008) Increase $4,923 per RUE 8.8% $6,509 per RUE 8.7% The proposed capacity fee increases are principally due to CCCSD's 2006 -07 investment of nearly $40 million in additions, upgrades, renovation, and replacement of capital facilities. Capacity fees for nonresidential (commercial, industrial and institutional) projects are also based on "Residential Unit Equivalents," so they will also increase by the same percentages if the proposal is adopted. Capacity Fees, and Environmental and Development - Related Rates and Charges March 21, 2008 Page 2 Environmental and Development - Related Rates and Charges: Chapter 6.30 of the CCCSD Code establishes environmental rates and charges to recover the costs for permitting of industrial users and for regulating septage /grease hauling and disposal, and development - related rates and charges to recover costs to provide services including: • Permit Issuance; • Plan and easement review for main sewer extension projects; • Inspection of main sewer extensions and side sewers; • Processing of quitclaims and real property agreements; • Administering the reimbursement and capacity use charge programs; • Surveying and review of geotechnical engineering; and • Preparing development - related record drawings and adding new development information to the District's maps. After a review of the rates and charges in effect since July 1, 2007, CCCSD staff recommended to the Board of Directors that most environmental and development - related rates and charges be increased. However, District staff has recommended that environmental rates and charges for industrial user permits and septage /grease disposal remain unchanged. Outreach Program: District staff will hold two informal meetings to discuss the proposed increases in capacity fees, as well as revision of the rates and charges, with interested customers on Tuesday, April 8, 2008 at 7:00 p.m., and Wednesday, April 9, 2008 at 10:00 a.m. Both meetings will be in the District Board Meeting Room at 5019 Imhoff Place, Martinez. Public Hearings to receive comments on the capacity fee and rates and charges proposals are scheduled for Thursday, April 17, 2008, at 2 p.m., in the CCCSD Board of Directors Meeting Room. The draft ordinances to be considered by the Board, and the data and documents on which the fee proposal is based will be available for review ten (10) days prior to the public hearing, as required. If you have questions or would like any additional information, please telephone me at (925) 229 -7335 or Kurt Darner at (925) 229 -7338, or send an e-mail message to jm2 @centralsan.dst.ca.us. Sincerely, Jarred Miyamoto -Mills Principal Engineer JM2: Enclosures N: \ENVRSRV\Fees & Charges - Capacity, Environmental & Development\2008 Stakeholder's Notice.doc CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Proposal March 2008 INTRODUCTION j)jjAFT In September 1998, the state enacted SB1760 that requires sewer connection fees to be based on one of two methods: 1) a buy -in to existing assets, or 2) the cost of future facilities expansion. This bill was enthusiastically endorsed and supported by home builders' associations statewide. In 2001, Central Contra Costa Sanitary District's method for determination of Capacity Fees was changed to a "buy -in -to -all assets" approach. This was done to provide a rational, practical, equitable and defensible method to calculate the financial burden of new connections. The buy -in -to -all- assets approach is preferred primarily due to the "facilities- mature" status of the District. In this context, facilities- mature means that the value of existing assets (about $1.54 billion) is many times the value of future facilities expansion needed to accommodate future customers. Stated differently, most of the facilities needed to serve new customers have already been built and paid for by current customers. As a consequence, most of the work envisioned in the District's Capital Improvement Plan is for renovation, replacement or upgrading of facilities to maintain capacity for both current and prospective customers. Charging a Capacity Fee based on a buy -in -to -all- assets at the time of connection to the public sewer system equalizes the unit investment of each customer as they move from being a "future" to being a "current" customer. The following sections present a discussion of the District's Capacity Fee approach, staff - proposed increases, and a planned customer /public outreach program. THE DISTRICT'S APPROACH TO CALCULATING CAPACITY FEES The District's current method of calculation for Capacity Fees is based on a buy- in -to- all- assets approach. The calculation estimates the "current value" of real property (land), facilities, equipment and the balances in the Sewer Construction, Running Expense and Self Insurance Funds. In the calculation, the current value of each asset category is determined as follows: ♦ Land: The "current value" of investments in real property is estimated based on the opportunity value of like cash investments deposited in the District's temporary investments at the time of each purchase and held at interest to the present, rather than by attempting to determine actual market value. Capacity Fee Proposal - March 2008 Page 2 ♦ Facilities: The current value of investments in physical facilities is estimated by both escalating each year's facilities expenditures based on the change in the Engineering News Record Construction Cost Index for the San Francisco Bay Area (ENR- CCI -SF), and applying straight -line depreciation using the following life cycles with no salvage value. Please note that a category for "Mains (Renovation Program)" has been included for the first time this year in the current value of facilities for determination of Capacity Fees. This category accounts for the District's significant investment since 1988 in life -cycle replacement and renovation of sewers 10- inches in diameter and smaller. This work renews capacity in these smaller sewers for the benefit of both existing and new connectors and reduces future maintenance costs. Average Useful Life: Gravity Sewers Interceptors 150 years Trunks 100 years Mains (Renovated by District) 75 years Treatment Plant & Pumping Station Facilities Tanks /Foundations 100 years Buildings 75 years Mechanical, Electrical & Control Equipment 30 years Recycled Water Facilities Pipelines 50 years Mechanical, Electrical & Control Equipment 30 years General Improvements Buildings 50 years Mechanical /Electrical Equipment and Furnishings 25 years Vehicles and other Equipment 10 years Major Repairs /Replacements 10 years Capacity Fee Proposal - March 2008 Page 3 ♦ Fund Balances: Prior fiscal year -end balances for the Sewer Construction, Running Expense, and Self Insurance Funds are used. The Sewer Construction Fund Balance is reduced by the principal value of the District's outstanding debt. After estimating the "current value" for an asset category, the component of the Capacity Fee attributable to that category is calculated by dividing current value by the current number of customers (number of Residential Unit Equivalents: "RUE "): Value of Assets Buy -in Fee = ---------------------------------- - - - - -- Number of Customers (RUE) RECOMMENDED CAPACITY FEE INCREASES Staff recommends that the Board consider adopting Capacity Fees for the 2008 -09 fiscal year by applying the valuation approach and facilities life cycles described above. The proposed fees are: Fee Category Current Proposed % change Gravity Service $4,523 per RUE $4,923 per RUE 8.8% Pumping Service $5,990 per RUE $6,509 per RUE 8.7% The calculation of these proposed fees is shown in Table 1. If the staff recommendation to increase Capacity Fees is adopted by the Board of Directors, it is projected that approximately $630,000 in additional annual revenue will be generated in fiscal year 2008 -09, based on connection of 600 Residential Unit Equivalents (RUE) in the gravity zone and 750 RUE in the pumped zone. The proposed capacity fee increases are principally due to CCCSD's 2006 -07 investment of nearly $40 million in additions, upgrades, renovation, and replacement of capital facilities. The fee calculation approach is a rational, practical, equitable and defensible method to determine the financial burden of new connections. A comparison of the proposed Capacity Fees to the fees charged by neighboring agencies is presented in Table 2. JM2:mbs W C C d R a W w c FU C y W d n O M 01 to to N It LO to a d H w N V — t6 0 LL LL 01 C 1 ` a' CD m C �t0 1 d 1 c ' U C OV d i 7 16 1 C f d I c i A t W Y C f .y .t d t F- F NI 0 z 0 0 0 o a o e o 0 0 o e o W? r to M N e- to 1� C N Cl O to N 1+ to r to M IT N N too Co O V C dt aU d N M w O w N w N t0 to Of 3 N e- N w It w ^ N a w O O O1 e- �.+ = w V M e- C w w y w Ln C E d 0 O L c W r 1` to to r w w M to N N W to O 1, O b N m O 1, M N to O w I w w Ir w w C14 w 44W w m w w w w LL d Go N to M N r O M O O O A M 10 IT f` r r M t- -e w 1• to M to Q to M CL n t0 tp O M to a- It O A to O M O O 1- M V' a O O N w N M O b A W It n M w w P w n a M w t70 w r w t0 t0 - - O 11` ' M o> n n O N O L. M N CD r n W � to N Go A O M o1 w e- It O w N w m M O e- N m L w Mw w N� w w w w w 0 L w T ° M d E M + o N M LQ LQ ;, Q a + O = m O o T ,n z L� .-. 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W N �O U U W C C d R a W w c FU C y W d n O M 01 to to N It LO to a d H w N V — t6 0 LL LL 01 C 1 ` a' CD m C �t0 1 d 1 c ' U C OV d i 7 16 1 C f d I c i A t W Y C f .y .t d t F- F NI 0 z Table 2 COMPARISON OF CAPACITY FEES Agency Capacity Fee * Dublin San Ramon Services District $11,230 Mountain View Sanitary District $8,032 Proposed CCCSD Pumped Zone $6,509 Pittsburg (Delta Diablo Sanitation District for Treatment) $6,298 Antioch (Delta Diablo Sanitation District for Treatment) $6,167 Current CCCSD Pumped Zone $5,990 Proposed CCCSD Gravity Zone $4,923 Current CCCSD Gravity Zone $4,523 Bay Point (Delta Diablo Sanitation District for Treatment) $4,444 Concord $4,100 West County Wastewater District $2,287 1* Other agencies' fees are for 2006 -07 - an Update is being prepared CENTRAL CONTRA COSTA SANITARY DISTRICT Proposal to Revise Environmental and Development - Related Rates and Charges March 2008 OVERVIEW CRAFT The Central Contra Costa Sanitary District (District) Board of Directors will soon consider adopting an ordinance to revise Chapter 6.30, Schedule of Rates and Charges, for various environmental and development - related services. If adopted, these increases in 2008 -09 would total approximately $60,000 to $80,000 in additional District revenue. BACKGROUND Chapter 6.30 of the District Code includes a schedule of rates and charges for environmental and development - related services provided to contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permit counter assistance, plan review, inspection of construction for laterals and main line extensions, addition of new sewers, parcels, and permit information to District maps, source control permits and inspections, and septic and grease hauler sampling and treatment. These rates and charges are intended to recover the District's direct and indirect labor costs, other operating expenses, and administrative overhead incurred in providing each service. These rates and charges were last reviewed in 2007. District staff annually reviews the rates and charges to assess whether changes are appropriate. This year, as in the past, the District has re- evaluated the rates and charges for the categories of Development Plan Review, Construction Inspection, Collection System Services, Right - of -Way, and Miscellaneous. The recommended rates and charges are explained in the following pages. District staff has proposed that environmental rates and charges for industrial user permits and septage /grease disposal remain unchanged. PROPOSED RATES AND CHARGES The State of California mandates that revenues from these sources not exceed the cost of providing services. Following its review, District staff recommended that rates and charges be revised to include: 1) adjustment for increased salaries, benefits and overhead; 2) adjustment of the mileage rate for those charges that include a mileage factor; 3) an additional television inspection of new mainline projects at the one -year warranty inspection. Table 1 presents a comparison of the current and proposed rates and charges. Proposal to Revise Development - Related Rates and Charges March 2008 Page 2 Increases of 7.5% are recommended for most of the rates and charges to account for higher salaries, benefits, and overhead. The District's Administrative Overhead rate is calculated to go up in 2008 -09 to 190% of salary, largely due to the new OPEB (Other Post - Employment Benefits) expense of $3.0 million. Staff proposes that certain inspection charges that include a mileage factor be adjusted so that vehicle depreciation costs are not included in the mileage rate. Vehicle depreciation is already included in Administrative Overhead. An additional television inspection of new mainline projects is recommended at the time of the one -year warranty inspection in order to check the integrity of the installation and the accumulation of any construction debris. This additional television inspection will increase the mainline inspection fees by $0.67 per foot. TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2008 -09) Fee Category 2007 -08 Fee Proposed 2008 -09 Fee % Change (A) DEVELOPMENT AND PLAN REVIEW Review of new sewer plans and related documents; review of plans for and processing of residential and commercial permit applications; installer reimbursement of sewer construction costs from subsequent connectors; identification of right - of -way conflicts; and interest rates for District programs. (A -1) Development Review: Mainline Plan Review (2 preliminary + 1 final plan reviews): Base Fee $441 $474 7.500 Per Foot Charge (in street) $3.40 $3.66 7.50% Per Foot Charge (in undeveloped land) $2.72 $2.92 7.50% Each additional plan review: Base Fee $147 $158 7.50% Per Foot Charge $1.13 $1.21 7.50% Special Cut Sheet Review $186 $200 7.50% Manhole only design & plan review $653 $702 7.50% Right of Way Document Review - IOD / Sub Map (each): $539 $579 7.50% Right of Way Document Review - No Changes Required $350 $376 7.50% Right of Way document review - Appurtenance (initial): $501 $539 7.50% Appurtenance (each additional) $185 $199 7.50% Commercial development plan check (new connections) $174 $187 7.50% (A -2) Application Fees Basic Application (side sewer work, easement staking) $83 $89 7.50% Existing parcel - new sewer service $113 $121 7.50% New parcel - new sewer service $182 $196 7.50% Commercial Application $186 $200 7.50% Capacity Use Program $166 $178 7.50% (A -3) Reimbursement Accounts: Set -up fee $685 $736 7.50% Transaction fee $154 $166 7.50% (A -4) Commercial Business Plan Review (added square footage, food service) Added Square Footage, Food Service $114 $123 7.50% Special Studies (minimum) $469 $504 7.50% Source Control Review $177 $190 7.50% Grease Variance Review (includes site visit) $266 $286 7.50% (A -5) Private pumping system plan check Pump with Outside Force Main $347 $373 7.50% Pump Only $194 $209 7.50% Additional Review $143 $154 7.50% Pre- apporved Pump Systems $143 $154 7.50% (A -6) Annexation Fee $534 1 $574 1 7.50% (A -7) Special Approvals $192 1 $206 1 7.50% 2008 -09 Rates & Charges Comparison using percentage Page 1 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2008 -09) Fee Category 2007 -08 Fee Proposed 2008 -09 Fee % Change (B) CONSTRUCTION INSPECTION Inspection of new sewer main construction and new connections and other sewer work on private property (includes TV inspection when appropriate). (B -1) Mainline Inspection: Base Fee $631 $678 7.500 Per Foot Charge (in street) (incl additional TV insp @ 1 yr final) $7.93 $9.19 15.90% Per Foot Charge (undeveloped land) (incl additional TV insp @ 1 yr final) $5.29 $6.35 20.10% (B -2) Inspections by type: Side Sewer Installation / Repair per 100 feet: $130 $137 5.28% Single Inspection Charge (e.g. sewer connection; encroachment verification; side sewer cap on property; tap and lateral (new or replacement); air test; reinspection; trash enclosure w/o trap); side sewer TV inspection $130 $137 5.28% Manhole tap; lateral abandonment at main; pipe bursting $260 $274 5.28% Manhole Alteration; Side Sewer CIPP repair; interceptor abandonment $390 $411 5.28% New Manhole; New Rodding Inlet; Outside Pump Installation $520 $547 5.28% Grease / Sand / Oil Interceptor / Trap; Trash Enclosure w/ trap $780 $821 5.28% (B -3) Overtime inspection: First Hour $86 $90 4.15% Every hour thereafter $56 $60 7.50% Weekend /Holiday (New Year's Day, Martin Luther King, President's Day, Memorial Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) - 4 hr. minimum $254 $273 7.50% (B -4) Inspection of non - permitted work (+ avoided charge) $390 $419 7.50% 2008 -09 Rates & Charges Comparison using percentage Page 2 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2008 -09) Fee Category 2007 -08 Fee Proposed 2008 -09 Fee % Change (C) COLLECTION SYSTEM SERVICES TV inspection of sewers conducted separate from a construction inspection activity,- verification of sewer location and sewer service connection. (C -1) TV Inspection: Weekday, hourly rate $177 $187 5.87% Minimum Charge (2 hr min) $355 $376 5.88% Overtime - First Hour $125 $131 5.20% Overtime - Each Additional Hour $102 $110 7.50% Overtime - Weekend / Holiday (4 hr min) $433 $465 7.50% (C -2) Dye test $302 $322 6.55% (C -3) Collection system repair Actual Expense Actual Expense (C -4) Cancelled TV Inspection without prior notice $308 $331 7.50% (C -5) Sewer locating and marking $258 $274 6.38% (D) RIGHT -OF -WAY Establishing right -of -way agreements and resolving conflicts. (D -1) Process Quitclaim Deeds $844 $907 7.50% Process Quitclaim Deed - plat and legal by others $513 $551 7.50% (D -2) Process Real Property Agreement, License, or Easement Base Fee (2 hours) $694 $746 7.50% Each Additional Hour $108 $116 7.50% (D -3) Right -of -way Research / Encroachment Resolution Fee Actual Expense Actual Expense (D -4) Right of Entry / Encroachment Permit Fee $95 $102 7.50% (E) MISCELLANEOUS District services provided for private sewer projects. (E -1) Engineering - private sewer projects Actual Expense Actual Expense (E -2) Soil evaluation - private sewer projects Actual Expense Actual Expense (E -3) Surveying Actual Expense Actual Expense (E -4) Minimum annual interest rate for CADs and Capacity Use Program 6.00% 6.00% no change Document / Plan Copying Fees 8 1/2" x 11 "; 8 1/2" x 14'; 11" x 17' (per sheet) $0.15 $0.15 no change 24" x 36" Plan (per sheet) $3.00 $3.00 no change CCCSD Standard Specifications $20.00 $20.00 no change 2008 -09 Rates & Charges Comparison using percentage Page 3 TABLE 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES (2008 -09) Fee Category 2007 -08 Fee Proposed off, Change 2008 -09 Fee (F) INDUSTRIAL PERMIT FEES Permiting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. Base permit fee of Base permit fee of (F -1) Class I Fees $3,256 + cost of $3,256 + cost of no change District's lab District's lab analysis analysis Base permit fee of Base permit fee of (F -2) Class II Fees $3,256 + cost of $3,256 + cost of no change g District's lab District's lab analysis analysis (F -3) Class III Fees 0 $0 no change (F -4) Industrial user permit application fee 0 $0 no change (F -5) Special discharge permit application fee ( *) No on -site inspection $65 each $65 each no change On -site inspection Base fee of $345 Base fee of $345 no change (G) SEPTAGE DISPOSAL ( * *) Sampling and disposal of septic waste and grease. (G -1) Annual permit fee $1,650 $1,650 no change (G -2) Residential septic/toilet waste < 2,000 gallons $18 + $0.14 /gal $18 + $0.14 /gal no change > 2,000 gallons $58 + $0.14 /gal $58 + $0.14 /gal no change (G -3) Restaurant grease waste < 2,000 gallons $18 + $0.02/gal $18 + $0.02/gal no change > 2,000 gallons $58 + $0.02/gal $58 + $0.02 /gal no change ( *) Additional charges to be billed separately if staff time incurred is above that included in the base fee. ( * *) Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. 2008 -09 Rates & Charges Comparison using percentage Page 4 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2008 No.: 4.e. Consent Calendar Type of Action: ESTABLISH PUBLIC HEARING DATE subject: ESTABLISH APRIL 17, 2008 AS THE DATE FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES Submitted By: Initiating Dept. /Div.: Kurt Darner Engineering / Environmental Services Development Services Supervisor REVIEWED AND RECOMMENDED FOR BOARD ACTION: 4Kaer eCfVS(w a n s o A. Farrell K. Alm Jam s M. Kelly General Manager ISSUE: The District Code requires that a public hearing be held prior to the Board of Directors consideration of amendments to the Schedule of Environmental and Development - Related Rates and Charges. RECOMMENDATION: Establish April 17, 2008 as the date for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Environmental and Development - Related Rates and Charges. FINANCIAL IMPACTS: None by this action. If the staff recommendation to increase development - related rates and charges is adopted by the Board of Directors following the public hearing, it is projected that approximately $60,000 to $80,000 in additional annual revenue will be generated in fiscal year 2008 -09. ALTERNATIVES /CONSIDERATIONS: The Board of Directors may decline to establish the recommended public hearing date or may elect to choose a different date. However, a public hearing must be held if Environmental and Development - Related Rates and Charges are to be revised. If the hearing is held on April 17, 2008 as recommended, the fees would be effective on July 1, 2008. BACKGROUND: Staff has completed its annual review of the District's Environmental and Development - Related Rates and Charges and has concluded that it would be appropriate to revise rates and charges to include 1) adjustment for increased salaries, benefits and overhead; 2) adjustment of the mileage rate for those charges that include a mileage component; and 3) an additional television inspection of new main sewers at the one -year warranty inspection. Staff also proposes to conduct a public hearing on a related recommendation to revise Capacity Fees at the same Board meeting (April 17, 2008). N: \ENVRSEC \Position Papers \Darner\2008 \PP Set Hearing Env and Dev Related Rates and Charges 3- 20- 08.doc POSITION PAPER Board Meeting Date: March 20, 2008 subject ESTABLISH APRIL 17, 2008 AS THE DATE FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED RATES AND CHARGES A coordinated outreach program to inform and solicit input from interested customers regarding both the proposed Capacity Fees and the proposed Environmental and Development - Related Rates and Charges will be conducted by staff before the public hearing date. RECOMMENDED BOARD ACTION: Establish April 17, 2008 as the date for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Environmental and Development - Related Rates and Charges. N: \ENVRSEC \Position Papers \Darner\2008 \PP Set Hearing Env and Dev Related Rates and Charges 3- 20- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2008 No.: 4.f. Consent Calendar Type of Action: subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT WITH JOHN BARTEL FOR $40,000 TO REVIEW THE DISTRICT'S RETIREMENT SYSTEM Submitted By: Randall M. Musgraves Initiating Dept. /Div,: Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION: R7mo DiKMusgraves erector of Administration f 1,1 Kent Alm District Counsel O�A - James elly, General manager ISSUE: The Board of Directors' authorization is required for execution of Operations and Maintenance (O &M) contracts exceeding $25,000. RECOMMENDATION: Authorize the General Manager to execute a contract with John Bartel, not to exceed $40,000. FINANCIAL IMPACTS: Amount not to exceed $40,000. ALTERNATIVES /CONSIDERATIONS: Deny the request or reduce the contract scope and cost. BACKGROUND: At the Board's October 31, 2007 Strategic Planning meeting, staff was directed to obtain the services of a qualified consultant to review the District's retirement system. The scope of the review is: • Compare the cost and benefit formula differences between CCCERA and CalPERS. • Answer why CCCERA contribution rates are higher than other retirement systems (inherent in this is the question of whether the District is subsidizing other CCCERA participating agencies, including the County). Evaluate results of DDSD and City of Pittsburg move to CALPERS from CCCERA. • Analyze the implications of pre - paying the District's unfounded liability (UAAL). Staff obtained a proposal from Mr. John Bartel, not to exceed $40,000. Mr. Bartel assisted the Delta Diablo Sanitation District (DDSD) and the City of Pittsburg move from the CCCERA system to the CalPERS system. Mr. Bartel evaluated the two systems N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers \Bartel Contract.doc POSITION PAPER Board Meeting Date: March 20, 2008 subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT WITH JOHN BARTEL FOR $40,000 TO REVIEW THE DISTRICT'S RETIREMENT SYSTEM and options for their agencies. Staff believes the actual cost for Mr. Bartel's services will be $25,000. The Human Resources Committee reviewed this request and is recommending Board approval. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a contract with John Bartel, not to exceed $40,000. N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers \Bartel Contract.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2008 No.: 4.g. Consent Calendar Type of Action: CONSIDER EMERGENCY WITHDRAWAL subject: CONSIDER A REQUEST FOR EMERGENCY WITHDRAWAL OF FUNDS FROM THE DEFERRED COMPENSATION PLAN Submitted By: Debbie Ratcliff, Controller Initiating Dept./Div.: Administrative / Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Rat9ov R. Mush av9 JA* - Jamei M. Kelly, General Manager ISSUE: Authorization by the Board of Directors is required for emergency withdrawal of funds from the Deferred Compensation Plan. RECOMMENDATION: Approve the request by Doris Keifer for an emergency withdrawal of $5,000 after taxes, from the Deferred Compensation Plan, as recommended by the Deferred Compensation Plan Advisory Committee. FINANCIAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: This request could be denied, however, this is not recommended as the request meets the requirements for emergency withdrawals as set forth by the Internal Revenue Service. BACKGROUND: Doris Keifer, Secretary III, has requested an emergency withdrawal from the Deferred Compensation Plan to cover an unexpected financial emergency. The Deferred Compensation Plan Advisory Committee has reviewed the request and determined that it meets the requirements for emergency withdrawal in the amount of $5,000 after taxes. A separate, confidential memo has been provided to the Board. If the Board wishes to obtain additional information, a closed session is scheduled on the agenda. RECOMMENDED BOARD ACTION: Approve the request by Doris Keifer for an emergency withdrawal of $5,000 after taxes, from the Deferred Compensation Plan, as recommended by the Deferred Compensation Plan Advisory Committee. NAADMINSUPWDMIN \POSPAPER \Done Keifer Emergency Withdrawal 03- 20- 08.doc New SWRCB Reporting Requirements for Sewer System Overflows Bill Brennan Collection System Operations Department Director March 20, 2008 New vs. old requirements • Applies to any volume SSO that discharges to a drainage channel or reaches surface water • Time frame: "within two hours" • Notify OES and obtain an OES number • Applied to discharges over 1,000 gallons, or fish kill, or danger to human health • Time frame: "as soon as possible" • Notify OES and obtain an OES number (. a , l) 1 New vs. old requirements • Notify Contra Costa County Environmental Health department within two hours • Notify the RWQCB within two hours • Within 24 hours certify to the RWQCB that these notifications have occurred • Notify Contra Costa County Environmental Health department as soon as possible • Notify the RWQCB as soon as possible What it means to us • The new requirements went into effect on February 20 with little or no review • We were notified via BACWA • On February 21, information was presented to all members of CSO staff • Supervisors carry all necessary notification information with them at all times • The RWQCB certification may require weekend work 2 A pocket -sized guide to reporting AUTHORITIES A GUIDE TO REPORTING TO ,,: 1. Office of Emergency Services (OES) (800) 852 -7550 or • Report spill and get Control Number (916) 845 -8911 2. Michael Chas, RWOCB • Report spill using script (over) (510) 622 -2333 or • Provide OES Control Number (510) 622 -2460 3. County Environmental Health Services (925) 692 -2500 - - - - - - -- -- - - - - -- --- ---------- - - - - -- ------------------------------ after hours/on call: • Jocelyn Habal 692 -2540; (925) 383 -5445 or (925) 383 -4945 4. City of Pleasant Hill Public Works (925) 671 -4646 5. EBMUD (866) 403 -2683, ext. 0; after hours (866) 403 -2683 6. California Fish & Game (916) 445 -0380 press "2" 7. `ZONE 7 ": Joe Seto, Flood Control (925) 519 -1728; if no answer, leave message and call Diana Gaines. Safety (925) 447 -6703, ext. 225; if no answer ... Jeff Jones. Emergency Services (925) 519 -1147; if no answer ... (925) 454 -5000. A pocket -sized guide to reporting "This is (name) from Central Contra Costa Sanitary District. I am reporting a sewage spill. CCCSD has experienced a sewer line blockage, resulting in the discharge of raw sewage. The blockage occurred at (time, date and exact location of the overflow) . The quantity spilled was approximately gallons. A crew was dispatched at (time) to clean up the spill. Cleanup operations were /will be completed by (time and date) The OES Control Number for this spill is NOTE: if you must leave a voicemail message, be sure to provide: • Date and estimated time overflow began • Rate of flow . Volume and duration • Your name and phone number • Your agency name • Location (street address or nearest address and cross streets) 3 Supported on line • The RWQCB has assisted everyone in the San Francisco Bay Region by providing a website to enter the certifications • The required three -day SWRCB notification at the California Integrated Water Quality System (CIWQS) website remains in place Discussion with the SWRCB • On March 6, CASA requested a meeting with SWRCB and OES to discuss the new two -hour notification requirement • The purpose of the meeting will be to clarify implementation Some of the issues to discuss with the SWRCB • What triggers the two -hour clock? • What does the RWQCB certification consist of? • Does OES understand that it will receive many more calls sooner but with less information? Questions? 5 Item 6.a.2 Central Contra Costa Sanitary District Potential for Future Septic Tank Conversion General Manager's Report Jarred Miyamoto -Mills March 20, 2008 Properties with Septic Tanks • Properties within District boundaries: (located throughout the District; the majority in Orinda, Alamo and Danville) • 450 Lots identified as "Septic" on System Map. • -650 Lots - Additional improved properties with Septic Tanks (including -200 lots in the Alhambra Valley. • Properties yet to be annexed: • -1,000 Lots - Improved properties served by Septic Tanks in unannexed "islands" or in peripheral areas inside the Urban Limit Line. • Rate of conversion from septic to District sewer: • 670 Lots since 1995 (an average of -55 Lots per year) • -200 of these connected as part of the Contractual Assessment District (CAD) Program from 1997 to 2003. 1 HIM i ZN MA' MAP-' Conclusions • Staff estimates that a total of about 2,100 lots, either within District boundaries or in areas yet to be annexed are likely to be converted from septic tanks to CCCSD sewer service in the future. • The evaluation presented today is somewhat cursory. Staff plans to improve our estimate of properties with septic tanks by identifying them on the System Maps within the next 3 — 6 months. • In addition, we will identify areas where there are concentrations of these properties. Questions...? Agenda Item 6. a. 7) Board Meeting of March 20, 2008 Announcements: a) Leadership Development Program Presentation /Luncheon Board Members are invited to the Leadership Development Program Project Presentations and Luncheon in the Multi- Purpose Room on Wednesday, May 14, 2008 from 9:00 a.m. until 1:00 p.m. Award of certificates to the 2007 -08 graduating class will follow the luncheon. If you would like to attend, contact the Secretary of the District by May 7, 2008. b) Odor Issue at Marriott Hotel The District investigated sewer odors from a storm drain manhole near the Marriott Hotel in Walnut Creek. Collections Systems Operations (CSO) and Source Control staff responded. Staff determined that the District's sanitary sewer system was not discharging to the storm drain. CSO blocked the storm drain and installed a pump to transfer liquid to a nearby manhole. Samples from the storm drain system indicated some of the water was sewage. A CSO tv crew confirmed that polluted water was being discharged to the storm drain system from the hotel storm water sump. Marriott took measures to control the discharge of contaminated water to the storm drain system by disabling the stormwater sump pumps and installing temporary pumps to divert the stormwater contents to the sanitary sewer sump. CSO removed their emergency response equipment once these measures were in place. Source Control issued a Notice of Violation (NOV) under the Clean Water Program service agreement to record the condition and required Marriott to start and document corrective action. Marriott staff stated their commitment to resolving this situation. City of Walnut Creek staff has met with Marriott staff; City staff are responsible for following Marriott's corrective actions and any enforcement actions. c) CWEA Annual Conference Attendance and Presentation Schedule Twenty -eight District staff members plan to attend the Annual California Water Environmental Association (CWEA) Conference in Sacramento, California from April 13 through April 16, 2008. This is the major state conference and equipment show geared to the specific needs of California in the field of wastewater. Twelve employees will be making technical presentations. The District has been nominated for several awards including Large Collection System of the Year, Engineering Achievement Project of the Year, Mechanical Person of the Year (DeWayne Derrick), Video of the Year, and the Gizmos and Gadgets Award. Four attendees are either CWEA committee chairs or moderators for various technical sessions. The conference also includes a variety of valuable training opportunities in emergency preparedness, energy management, asset management, and new constituents of concern. Copies of the presentations will be provided to the Board at the April 3, 2008 Board Meeting. The presentation schedule is as follows: ■ "Removal of Heavy Metals from Sewage Sludge Incinerator Exhaust Using Dry Carbon" — Associate Engineer Craig Mizutani ■ "Make Your Hydraulic Model Come Alive with Graphical Interactivity" — Assistant Engineer Raffi Moughamian ■ "The Fog Challenge" Panel Discussion — Associate Engineer Gail Chesler ■ "Benefits of Regional Approaches for Wastewater Pollution Prevention" — Assistant Engineer Melody LaBella ■ "Integrating Pipeline Corrosion Data With Web Based GIS" — Engineering Support Supervisor Bill Clement and Senior Engineer Andrew Antkowiak ■ "Unconventional Air Plenum Repair Pilot Studies" — Assistant Engineers Nathan Hodges and Nathan Morales ■ "Cured in Place Pipe's Impacts on Treatment Works" — Associate Engineer Tom Godsey, and Assistant Engineers Alan Weer and Nathan Morales ■ "Implementation of a New Control System For a Waste Water Treatment Plant" — Senior Engineer Ba Than ■ "The Global Warming Solutions Act and Its Impact on Wastewater Treatment Plants" — Senior Engineer Randy Schmidt d) Tour of the District by Contra Costa County Grand Jury Steve Barnett, a member of the County Grand Jury, requested an orientation and tour of the District on Thursday, June 5, 2008 from 1 p.m. to 2:30 p.m. I requested alternative dates for that week, as the District's regular Board Meeting is scheduled on that date. e) Annual District Treatment Plant Inspection On October 26, 2007, Tetra Tech, Inc., the United States Environmental Protection Agency (USEPA) /Regional Water Quality Control Board conducted a compliance and evaluation inspection. The primary purpose of the inspection was to determine the accuracy and reliability of the discharger's self- monitoring and reporting program. The District received the written inspection report on March 3, 2008. There were no major findings. All ratings for permits, records and reports, facility site review, effluent and receiving waters, flow measurement, self- monitoring program, laboratory, operations and maintenance, solid waste handling and disposal, and pretreatment were reported as satisfactory. f) Advertisement of Walnut Creek Renovations (Phase 6) DP 5972 This project is one of multiple phases of sewer renovations in Walnut Creek that resulted from the District -wide video inspection project. The project will reconstruct approximately 9,100 linear feet of 6- and 8 -inch sewer lines within public right -of -way, private streets, and easements. Both open -cut and pipeburst methods will be used. Also included in this project is the reconstruction of three short sewer reaches in Lafayette in coordination with their street paving program. This project will be advertised on March 21 and 27, 2008. The bids will be opened on April 15, 2008. The construction cost is currently estimated at $2,350,000. More information will be presented when the Board is asked to approve the construction contract on May 1, 2008. g) Advertisement of Wet - Weather Bypass Improvements (Pre - Load Phase), DP 7241 The Wet Weather Bypass Improvements project will be completed in two phases. The main phase of the project will be bid next year and will provide necessary improvements to the emergency wet weather discharge system. These improvements will include a new gravity overflow structure and box culvert to discharge directly to Walnut Creek. The Pre -Load phase places dirt fill at the location of the future structure to consolidate the soft, organic clay soils that are under the new overflow structure. The preloading of the site will greatly reduce the potential settlement that would take place due to the weight of the new structure if left unmitigated. Award of the contract will take place at the May 15, 2008 Board Meeting Engineers Construction cost estimate is $ 374,000. Construction of the project should be completed by September 2008. h) New District Service Area Aerial Photography The District will join with several other agencies (Contra Costa County, U.S. Geological Survey, the Clean Water Program, and other Cities) to acquire current aerial photography of Contra Costa County. The new imagery will be one -third higher resolution than in previous years and even better in some cities. The new elevation contour data will be 2 -foot intervals as compared to 10 -foot intervals currently available on Graphic Device Interface (GDI). The aerial photography will also be flown earlier in the year to have leaf -off imagery. The District service area should be available on GDI later this year. The overall contract amount is approximately $500,000 with the District's share at $25,000. i) LAFCO Municipal Service Review and Sphere of Influence Revision On March 12, 2008, the Local Agency Formation Commission ( LAFCO) was scheduled to consider approval of a Municipal Service Review (MSR) of the District, and other water and wastewater service providers in Contra Costa County. As part of the MSR process, LAFCO was considering a revision to the spheres of influence (SOI) boundaries for the District and several other agencies. LAFCO postponed approval of the MSR and SOI boundary revisions until April 9, 2008. j) Systematic Development of Informed Consent Training On April 28 and 29, 2008, training on the "Systematic Development of Informed Consent" (SDIC) will be conducted by Hans and Annemarie Bleiker from the Institute of Participatory Management. Staff has been trained on SDIC two times in the past 20 years. This training has been especially beneficial in helping staff gain support for the District's Capital Improvement projects. It has been seven years since the last training was provided and the District has hired a number of new employees who interact with the public. Approximately 25 District employees will attend the training. Invitations have also been extended to Mt. View Sanitary District, Delta Diablo Sanitary District, and Dublin -San Ramon Service District to attend at a full cost share. The approximate cost of the training is $10,000 and will be funded out of the Technical Services Budget. k) CCWD Request for Special Discharge Permit Contra Costa Water District (CCWD) has submitted an application for a Special Discharge Permit to dispose of wastewater from a pilot project located at the Bollman Water Treatment Facility. The goal of the pilot project is to evaluate the effectiveness of several different treatment technologies for removing pharmaceutical products from water. The project will be using water that is spiked with pharmaceuticals at strengths found in wastewater, not source water to a water treatment plant. 1) Pharmaceuticals Collection Pilot Program at Household Hazardous Waste Facility The District sent a proposal to the Contra Costa County Sheriffs Office about implementing a pharmaceutical collection pilot program at the District's Household Hazardous Waste Collection Facility ( HHWCF). Federal rules require that collection of pharmaceuticals be under the purview of a law enforcement agency because of the possibility of controlled medication receipt. Under the proposal, customers would deposit unwanted pharmaceuticals into HHWCF locked containers. The Sheriffs Office would periodically remove and dispose of the pharmaceuticals. The District would reimburse the Sheriffs Office for the cost of disposal. If the Sheriffs Office approves the proposal, the pilot program would be implemented by June. The effectiveness and cost of the pilot program would be evaluated after one year. m) March 11, 2008 RWQCB Draft Municipal Stormwater Permit Workshop The SF Bay Regional Water Quality Control Board held a workshop hearing on Tuesday March 11, 2008, to receive testimony on the tentative order for the Municipal Regional Permit (MRP) to establish standards for the protection of stormwater quality in the SF Bay Area. The hearing was established to receive testimony in support of written comments that were submitted prior to the February 29, 2008 deadline. No decision was scheduled to occur on the MRP tentative order at the hearing. The MRP's goals are to establish strong standards to protect water quality that is consistently applied across the greater SF Bay Area. The MRP proposes requirements to divert sources that have traditionally been discharged to the storm drain system to the sanitary sewer system. In addition, the MRP requires dischargers to study the feasibility of diverting dry season flows and first flush flows from the storm drain system to the sanitary sewer system. These proposed diversions would increase the hydraulic loading of the collection system which could cause, or contribute to, sanitary sewer overflows and increase the pollutant loading to wastewater treatment plants. More than 130 speaker cards were submitted to provide testimony during the hearing. Most of the speakers were from counties and cities that have storm water programs that would be affected by the MRP. One speaker from the US EPA spoke in general support of the MRP's scope and specificity. Environmental groups and individual citizens also supported the MRP. BACWA and the District testified that the proposed diversions of dry season and first flush flows have potential adverse impacts to wastewater collection and treatment systems since many of the proposed diversions could be contrary to current sanitary sewer requirements and NPDES permit requirements. The RWQCB directed their staff to consider options for addressing the significant concerns expressed during the hearing including setting up task forces and /or stakeholder workgroups to resolve the contested issues. The original timeframe for adopting the MRP was later this spring to have an effective date of July 1, 2008. It is not clear that the Water Board will be able to meet this target date if they plan to address the contended items. n) Sponsorship Costs for the Delta Discovery Program Information has been compiled at the request of Board Member Nejedly on the list of sponsors and the amounts. A memo is attached detailing this information. Agenda Item 6. a. 7) Board Meeting of March 20, 2008 Additional Announcements: o) 2.8% Cost -Of- Living Adjustment Based on the Consumer Price Index during the February 2007 to February 2008 base period, the District salary Cost -Of- Living Adjustment will be 2.8 %. This adjustment will be effective April 18, 2008. p) Grand Jury Tour Update The Grand Jury Tour is scheduled for Tuesday, June 17th from 1:30 p.m. to 3:00 p.m. More details will follow as the tour date approaches. q) Bid Protest for the Treatment Plant Site Improvements Project DP 7251 There was a bid protest on the Treatment Plant Site Improvements Project, DP 7251. The project was originally scheduled for award at the March 20, 2008 Board Meeting. All protest issues have been resolved and the project is scheduled for consideration at the April 3, 2008 Board Meeting. 6.a,?)n) Central Contra Costa Sanitary District March 13, 2008 TO: Honorable Members of the Board FROM: Michael Scahil SUBJECT: Sponsorship Costs for the Delta Discovery Program Per a request from Board member Nejedly, these are the sponsorship amounts for the Delta Discovery school program, under the auspices of the Marine Science Institute (MSI). Contra Costa Water District: $50,000 Delta Diablo Sanitation District: $20,000 Central Contra Costa Sanitary District: $10,000 Lesher Foundation: (final year of a two year grant MSI is seeking to renew) Community Watershed Stewardship Grant, County Watershed Program: (renewal of this grant questionable Marine Science Institute: (from MSI General Fund) Dow Chemical Corporation: Mt. View Sanitary District: Mt. Diablo Unified School District ($450 /class; 2 classes per trip) Schools outside Mt. Diablo District (to pay share of Discovery Voyage cost) $10,000 $10,000 $ 6,650 $ 4,000 $1,500 $37,350 Future funding uncertain $ 4,300 Future funding uncertain A full report on the Delta Discovery Program will be delivered at the next Outreach Committee scheduled for Tuesday, April 22, 2008. 6, b, �) Central Contra Costa Sanitary District March 14, 2008 TO: Honorable Members of the Board FROM: Jim Kelly, General Manager SUBJECT: Major Code Policy Consideration At the March 6, 2008 Board Meeting, I recommended that staff and District counsel prepare a summary of major policy considerations to facilitate the Board's review of code revisions. You agreed with this recommendation. Staff and counsel have summarized the major policy considerations for Titles 1, 2, and 5; the summary is attached for consideration. Titles 1, 2, and 5 will be agendized for comment at the March 20th Board Meeting. The remaining titles will be summarized for comment at future meetings. In addition, a memorandum summarizing policy consideration for the Backflow Protection Device will be provided to the Board in the near future. A revised code review and adoption schedule will be proposed at the March 20, 2008 Board Meeting. JMK:sIc Attachment cc: Kent Alm Elaine Boehme HAGeneral Manager's Directory\Board Documents\2008\2008 -03 -07 Major Code Change Consideration Memo.doc Summary of Maior Code Consideration 1. 08.020 - Right of Entry Section strengthens right of District employees, agents, or contractors to go on private property to the full extent allowed by law. Does not require notice, although notice is given under routine circumstances. 1. 08.045 - Enforcement (Iniunctive Relief) Section added to allow injunctive relief for code violations. 1. 08.045 - Abatement of Public Nuisances Section strengthened to allow District to abate public nuisances (see Section 1.04.46 for new public nuisance definition). 1.24 - Special Circumstances and Agreements Section continues to allow the Board to modify or suspend District Code and Ordinances. The Ad Hoc Committee and Board decided to keep this section in the code, although Counsel cautioned against its use under typical circumstances. 2.04.030.B - Compensation of Board Members States compensation shall be reviewed periodically at the Board's discretion, rather than annually. 5.08.03 - District Ownership of Unclaimed Securities or Cash Bonds Section establishes clear process for the District to become the owner of unclaimed securities. The section includes a notification effort and is in accordance with State law. 5.10.04.B - District May Correct Work and Collect Cost This section is consistent with Section 1.08.050, which was discussed previously. 5.12.030 - Suspension or Revocation of Sewer Work Permits and Suspension of Contractor Registration This section continues the process for registering contractors, and restates the right to suspend or revoke sewer work permits. The proposed revision would establish a new procedure to suspend a contractor's registration to do sewer work in the District. The procedure includes due process procedures. The procedures would apply where there is a pattern of unwillingness, inability, or refusal to comply with the Code, Standard Specifications, or other rules, regulations or procedures, or to pay any applicable fees, charges, or other financial obligation. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2008 No.: 7.a. Engineering Type of Action: AUTHORIZE TECHNICAL CONSULTING SERVICES AGREEMENT Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH BKF ENGINEERS FOR TECHNICAL CONSULTING SERVICES FOR THE A -LINE EASEMENT ACQUISITION — PHASE 2, DISTRICT PROJECT 5967 Submitted By: Initiating Dept./Div.: Michael J. Penny, Provisional Senior Engineering / Capital Projects Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: M-)�. _W/ NV Ocm�C Z�— M. f6in—ny J. Mi amoto -Mills C. Swanson N, T. Pilecki A. Farrell James P. Kelly, General Manager ISSUE: Board of Directors' authorization is required for agreements in amounts greater than staff authority. RECOMMENDATION: Authorize the General Manager to execute an agreement with BKF Engineers with a cost ceiling of $525,000 for field mapping, control, monument locating, and property descriptions for the A -Line Easement Acquisition — Phase 2, District Project 5967. FINANCIAL IMPACTS: Approximately $800,000 for this technical services agreement that includes establishing field survey control, locating monuments, performing a field survey of existing sewer lines and structures, preparation of CAD files of survey data, and preparation of about 100 legal descriptions, along with District survey review, pipeline potholing, negotiations with Contra Costa County, and project management. Not pursuing the work now could result in significant financial impacts in the form of costly utility relocations, sewer realignments, more expensive construction techniques /materials, as well as legal costs. ALTERNATIVES /CONSIDERATIONS: An alternative would be to have District survey staff provide these services. This is not recommended. This project is estimated to take almost 4,000 hours of staff time over a one -year period and cannot be completed with current staffing levels. Another alternative is to do nothing, and this also is not recommended as explained under the Financial Impacts section. BACKGROUND: In 1985 -86 the District worked with Contra Costa County (County) to purchase a 16 -mile length of the old Southern Pacific Railroad Right of Way (SPR/W) from Monument Boulevard in Concord to the San Ramon Pumping Station (see Attachment 1). The County had applied for and obtained a State Transportation Grant WPESUP \Cbradley \Position Papers \Penny \DP 5967 Amendment BKF PP.doc Page 1 of 3 POSITION PAPER Board Meeting Date: March 20, 2008 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH BKF ENGINEERS FOR TECHNICAL CONSULTING SERVICES FOR THE A -LINE EASEMENT ACQUISITION — PHASE 2, DISTRICT PROJECT 5967 to assist with the purchase of the SPR/W. However, the County had insufficient funds for the local share of the purchase price and, therefore, approached the District for assistance with the purchase. In prior years, several of the District's major sewers had been constructed in the SPR/W under license agreements with Southern Pacific. The SPR/W also provided an ideal alignment for major contemplated sewers from the San Ramon Pumping Station to the treatment plant. Therefore, the District agreed to purchase the easements from the County, thus assuring itself of property rights for both the existing and future "backbone" sewers of the collection system. Attachment 1 shows the major future "backbone" pipelines, specifically the A -Line Relief Interceptor, the Walnut Creek Bypass, and the San Ramon Interceptor and Force Main. At the time the purchase /easement documents were drafted, the exact locations of the existing and future sewers were not known; therefore, only general easement descriptions were prepared. The purchase /easement documents included language allowing for adjustments to the easement descriptions when the actual locations of the existing and future sewers were determined. The District paid the County approximately $6,000,000 for the easements. In recent years, a number of competing needs, such as water lines, storm drains, fiber optics, regional trails, and BART, have been encroaching into the SPR/W and into the District's easements. Additionally, as a condition of the State Transportation Grant, the County is required to preserve a 32- foot -wide strip in the SPR/W for a future Light Rail Project. Recently, a new pedestrian bridge is planned over Treat Boulevard that could have significant impacts on the District's existing sewers and easements for future sewers. (This new pedestrian bridge will be the subject of a future Board Position Paper.) With the completion of the pre- designs for the A -Line Relief and San Ramon Schedule C Interceptors, it is prudent for the District to perfect its easement rights and protect the corridor for its existing and future collection system "backbone" sewers. The A -Line Easement Acquisition - Phase 1 Project located existing sewers and identified the needed adjustments to the easements acquired from the County. The A -Line Easement Acquisition - Phase 2 Project will complete the locating of existing sewers, and prepare and record the necessary documents to perfect/protect the easements for existing and future District facilities. As shown in Attachment 1, easement adjustments will be prepared for the SPR/W from Monument Boulevard to the San Ramon Pumping Station. WPESUP\cbradley \Position Papers \Penny \DP 5967 Amendment BKF PP.doc Page 2 of 3 POSITION PAPER Board Meeting Date: March 20, 2008 subject AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH BKF ENGINEERS FOR TECHNICAL CONSULTING SERVICES FOR THE A -LINE EASEMENT ACQUISITION — PHASE 2, DISTRICT PROJECT 5967 On August 2, 2007, Requests for Proposals (RFP) were sent to five survey /engineering firms. On August 24, 2007, two of the firms responded with proposals. These firms were BKF Engineering (BKF) and RBF Consulting. After review and evaluation of the proposals both firms were invited to interviews. Based on the proposals and interviews, BKF was selected because they presented the best overall team and technical approach. Due to the complexity of the work involved and ongoing negotiations with County on easement description format, staff issued a technical consulting services agreement with BKF in the amount of $18,500 to research available monumentation, identify any new monuments needed, evaluate the suitability of GPS for the field work, and develop a methodology for writing the legal descriptions. Using this additional information, staff negotiated with BKF a scope of work and fee estimate with a cost ceiling of $525,000 to provide field mapping, control, monument locating, and approximately 100 property descriptions. The project is included in the 2007 -2008 Capital Improvement Budget on pages CS -79 and CS -80. Staff has determined that there are adequate funds available and that the expenditure requirements are consistent with the Collection System Program. The environmental effects of the A -Line Relief Interceptor Project, the Walnut Creek Bypass Project, and the San Ramon Interceptor Project were respectively addressed in the Pleasant Hill /A -Line Sewer Overflow Protection Project EIR certified by the Board of Directors on October 2, 1991, the Walnut Creek Downtown Parallel Project Negative Declaration approved by the Board of Directors on March 21, 1985, and the San Ramon Valley Trunk Sewer Improvements Project EIR certified by the Board of Directors on October 28, 1986. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an agreement with BKF Engineers with a cost ceiling of $525,000 for field mapping, control, monument locations, and property descriptions for the A -Line Easement Acquisition — Phase 2 Project, District Project 5967. N: \PESUP \Cbradley \Position Papers \Penny \DP 5967 Amendment BKF PP.doc Page 3 of 3 a� .. � r N N N Oaz cr 2azW 7¢ �y0 2 ui Lu �W2VJ QW F- z�Lu ° N ywQ �P � ¢ H tq m w LL Opy z s z �t: L-ui zg P Q W W CC W W = W z� LL, 17 U) � ~ CO va,?vUi1°a W � y � cc w W �" CO 6 Q Q Z �X z W �y O LL w O y I I N W Wz LLJ � VW 0 CO ° o a F- 0 ym z V ob W •- N z a' W O W a O cc Y N z LL W V v p -j w WO Y --) W H W Q zW(� CC a. WizQ a� O Z j Z 2 W U $DF� CCz GW °�SU Q� JzQ Q� 5N2 LU CV 0R2 rG 3u ?QW QCLV! vdc Q 3m� z � 7 a z co Z y „� Q y SCE w w +�+ v H Z Z wU) Ov WdOlAtll 8� w (3 U ++ u g Z j z i Q 06 Z X c Y s lip LL w 0 i M w O . 00 W c c� a V M Board Presentation 3/20/2008 (SPRR) Right of Way circa 1985 SPRR WW - Ideal Corridor for "Back Rnnp" of this Cnliprtinnq gv.gtpm 1 Purchase Agreement Issue Unknown Locations 5. 0 Existing Interceptor Sewers 0 Existing Tie-In Mains a Future Sewers Light Rail 0 Other Utilities Purchase Agreement Language was Written to Accommodate Future Adjustments — Most Have Not Been Made Yet 2 SPR/W AND A-LINE A" 2 3 i. ILANT \ (242 R ¢v 1r,_1149Tj .bra torso )/ A LINE. PHASE t3kiiiii - CiS°F£ N < . CONCORD 1gtA�LNUr CREEK -� —u+v CH1kNNEL (2i7F8} \ FUTURE EASEMENT PLEASANT i, iACCIUfM ON MILL / K _.. xr to _ V" REPEF INTERCFPTU'f �i IS I MIS an } EAS M.EI L 680:: ADJkt t MEN U', �P WALNUT --=- -- CREEK ��„� WALNUT GREEK BYPASS f1987) EASEMENT ADJUSTMENTS R!GNT SUE EXISTING SEWERS 3 i. LEFT SIDE SAN RAMON dNTERCEPTOR ALAMO SCHEDULES .A /R NW4 ) \ EASEMENT ADJUSTMENTS i DANV7LLE F i � _ < "?��_ ,,,tip^ • �, �.^�c.;ur tit._Y ,TAN RAMON \ :INTERCEPTOR ;y ' SCHEDULFS C I @TuS .. EASEMENT ADJUSTMENTS C* fie, SAN RAMON . ..n 'fORCE MAM (20XZ) . 't4SEMENT ADJkt t MEN U', SAN RAMON Em — RINRE SEWERS — EXISTING SEWERS 3 Why Now? T a Encroachments by Others 0 Ygnacio Pedestrian Bridge 0 Treat Pedestrian Bridge a Light Rail 0 Water Lines, Storm Drains, Regional Trail, etc. We Know Where We Are i County Staff is Committed to Proceed 2 Dr\r %aU[ILrdtrt bA Field Survey to Allow Preparation of Easement Descriptions and Plats and Tie into Central San's GIS 0 Establish Control . 57 County Monuments . 37 control Points Set by BKF, a Locate Sewers Using Manholes (307) and Potholing (74) Base CAD File Preparation Recommendation Authorize: the General Manager to Execute a Technical Consulting Services Agreement with BKF Engineers for the A -Line Easement Acquisition - Phase 2 Project 0 SP R/W (100 FT.) 1985 EASEMENT r- EXISTING SEWER NEW EASEMENT � N � NEW SEWER