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11/6/2008 AGENDA BACKUP
Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2008 No.: 3.d. Consent Calendar Type of Action: subject: ADOPTION OF A RESOLUTION ESTABLISHING REGULAR PERFORMANCE APPRAISAL SCHEDULE FOR EXECUTIVE MANAGEMENT TEAM Submitted By: Initiating Dept /Div.: REVIEWED AND RECOMMENDED FOR BOARD ACTION. cl J✓ JA�� E. Boehme James M. Oily, Secretary of the General Mahager District ISSUE: The Board of Directors has indicated a desire to establish a schedule for regular performance appraisals of the Executive Management Team, comprised of the General Manager, District Counsel, and Secretary of the District. RECOMMENDATION: Adopt the Resolution establishing performance appraisals for the Executive Management Team every two years, in the October of even - numbered years. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: Do not adopt the Resolution, or devise an alternative schedule. BACKGROUND: The Board of Directors last conducted performance appraisals of the Executive Management Team, comprised of the General Manager, District Counsel, and Secretary of the District, in July 2007. President Lucey suggested that it might be preferable to have a regular schedule for such appraisals. A Resolution has been drafted for Board consideration, establishing performance appraisals for the Executive Management Team every two years, in the October of even - numbered years, beginning in 2008. RECOMMENDED BOARD ACTION: Adopt the Resolution establishing performance appraisals for the Executive Management Team every two years, in the October of even- numbered years. RESOLUTION NO. A RESOLUTION ESTABLISHING BIENNIAL PERFORMANCE APPRAISALS FOR MEMBERS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT EXECUTIVE MANAGEMENT TEAM WHEREAS, the Executive Management Team of the Central Contra Costa Sanitary District consists of the General Manager, District Counsel and Secretary of the District, as defined in Section 4.24.030 of the District Code; and WHEREAS, the members of the Executive Management Team report directly to the Board of Directors of the Central Contra Costa Sanitary District; and WHEREAS, the Board of Directors has determined that each member of the Executive Management Team should receive a performance appraisal from the Board of Directors every two years. NOW, THEREFORE, BE IT RESOLVED THAT: 1. As defined in Section 4.23.030 of the District Code, the Executive Management Team consists of the General Manager, District Counsel, and Secretary of the District. 2. Performance appraisals by the Board of Directors for each member of the Executive Management Team will be scheduled automatically in October of each even - numbered year. 3. The Board of Directors may, if desired, schedule additional, interim performance appraisals of any member of the Executive Management Team. PASSED AND ADOPTED this 6th day of November, 2008 by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2008 No.: 3.e. Consent Calendar Type of Action: ACCEPT CONTRACT WORK/AUTHORIZE FILING OF THE NOTICE OF COMPLETION subject: ACCEPT THE CONTRACT WORK FOR THE WET WEATHER BYPASS IMPROVEMENTS (PRE -LOAD PHASE), DISTRICT PROJECT 7241, AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION Submitted By: Initiating Dept. /Div.: Gary Rathunde, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION. V"I T G. Rathunde B. Than cki A. Farrell James . Kelly, General Manager ISSUE: Construction has been completed on the Wet Weather Bypass Improvements (Pre -load Phase), District Project 7241, and the work is now ready for acceptance. RECOMMENDATION: Accept the contract work for the Wet Weather Bypass Improvements (Pre -load Phase), District Project 7241, and authorize filing of the Notice of Completion. FINANCIAL IMPACTS: None related to this action. ALTERNATIVES /CONSIDERATIONS: Not applicable. Filing the Notice of Completion is advisable under the California Civil Code, Section 3093. BACKGROUND: In the early 1990s, the District conducted evaluations and planning for the relocation of the Basin C discharge point as part of the Wet Weather Overflow Project and the Basin Discharge Hydraulics Project in an effort to decrease the risk of overflows from the basins during the wet weather season. Relocation of the discharge point would also provide a direct route to Walnut Creek for bypassing flow during dry weather when maintenance is required on the outfall pipeline. Improvements specifically recommended from those previous investigations included a new headworks, and expanded disinfection facilities. These improvements have already been implemented. An area of focus that has not been addressed is the wet weather bypass system. The existing bypass point has insufficient capacity during high flows and results in flooding of properties owned by others. This first phase of the project involved placing a preload fill to consolidate the soft, organic clay soils that underlie the site of the new overflow structure to be constructed in Basin B. The preloading of the site will greatly reduce the potential settlement, which if left unmitigated, would take place over time due to the weight of the new structure. N: \PESUP \Position Papers\ Rathunde \7241_Accept_Preload.doc Page 1 of 2 POSITION PAPER Board Meeting Date: November 6, 2008 subject. ACCEPT THE CONTRACT WORK FOR THE WET WEATHER BYPASS IMPROVEMENTS (PRE -LOAD PHASE), DISTRICT PROJECT 7241, AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION On May 15, 2008, the Board of Directors authorized the award of a contract for the construction of the project to Siteworks Construction, Inc. The Notice to Proceed was issued on June 18, 2008. The work was substantially completed on August 31, 2008. The remaining items of work consist of minor punch -list items that do not affect the project acceptance. Immediately upon acceptance, the Contractor is relieved of the duty of maintaining and protecting the Contract work. Guaranty and warranty periods required by the Contract and the statutory period for filing of liens and Stop Notices start on the date of acceptance by the Board of Directors. Final payment to the Contractor is made after expiration of the statutory period for filing of liens and Stop Notices, provided no liens or Stop Notices have been filed, and provided the punch -list items have been completed. The total authorized budget for the project is $367,400. The budget includes the cost of engineering design, construction management and inspection, testing services, and contractor services. An accounting of the project costs will be provided to the Board at the time of project closeout. It is appropriate to accept the contract work at this time. RECOMMENDED BOARD ACTION: Accept the contract work for the Wet Weather Bypass Improvements (Pre -load Phase), District Project 7241, and authorize filing of the Notice of Completion. N:\PESUP \Position Papers\ Rathunde \7241_Accept_Preload.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2008 No.: 3.f. Consent Calendar Type of Action: Human Resources Subject: AUTHORIZE EXTENSION OF MEDICAL LEAVE OF ABSENCE WITHOUT PAY FOR UTLITY WORKER MARALEE DAVI THROUGH DECEMBER 30, 2008 Submitted By: Douglas J. Craig, Initiating Dept. /Div.: Plant Operations Director of Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: yr %L_ D. Craig . Freitas 'James General ISSUE: Board of Directors' authorization is required for a medical leave of absence without pay in excess of 30 days. RECOMMENDATION: Authorize extension of medical leave of absence without pay for Utility Worker Maralee Davi. FINANCIAL IMPACTS: Minimal ALTERNATIVES /CONSIDERATIONS: Deny extension of medical leave of absence without pay. BACKGROUND: Utility Worker Maralee Davi has been off of work since August 1, 2007, due to a medical condition. The Board previously approved a medical leave of absence without pay for Ms. Davi through November 7, 2008. We request an extension of medical leave of absence without pay through December 30, 2008. Upon receipt of the next doctor's verification, Ms. Davi's status will be reviewed, and further Board action will be requested if appropriate. RECOMMENDED BOARD ACTION: Authorize extension of medical leave of absence without pay for Utility Worker Maralee Davi through December 30, 2008. N: \POSUP \Correspondence\Position Papers\2008 \Davi Leave of Absence Ext to 12- 30- 08.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2008 No.: 3.g. Consent Calendar Type of Action: APPROVE REVISED TABLE 1 OF THE 2008 -09 CAPITAL IMPROVEMENT BUDGET Subject: APPROVE REVISED FUNDING AUTHORIZATION FOR THE 2008 -09 CAPITAL IMPROVEMENT BUDGET Submitted By: Initiating Dept. /Div.: Earlene Millier, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 1-14 6 t �k �- E. Millier G. Qi6sler C. Swanson J Z" ( James M. K y, General M ager ISSUE: The Board is required to approve the total authorizations for the 2008 -09 Capital Improvement Budget. RECOMMENDATION: Approve the revised Table 1 of the 2008 -09 Capital Improvement Budget, which states total approved Board authorizations. FINANCIAL IMPACTS: Approval of the revised Table 1 showing actual carryover data will allow allocations to occur as needed and as described in the Capital Improvement Budget for FY 2009 -10. Planned expenditures have not changed. ALTERNATIVES /CONSIDERATIONS: The Board could direct staff to modify the CIB to reduce planned capital expenditures, and thus eliminate the need for an additional authorization. The Board could also defer approval to a later date. These alternatives are not recommended. BACKGROUND: The Board approved the CIB for inclusion in the FY 2008 -09 District Budget on May 15, 2008, and adopted the budget on June 5, 2008. Final expenditures for the 2007 -08 fiscal year were not known at that time, and therefore, Table 1 of the CIB included estimated amounts for previously allocated, but unspent funds, referred to as carryover. Now that actual 2007 -08 expenditure amounts for capital projects are known, Table 1 has been revised to reflect the actual carryover amounts. Table 1 is attached to this position paper. The revised table was reviewed with the Board Capital Projects Committee on October 28, 2008. RECOMMENDED BOARD ACTION: Approve the revised Table 1 of the 2008 -09 Capital Improvement Budget, which states total approved Board authorizations. NAENVRSEMPosition Papers \Millier\2008\Hpprove Revised Table 1 CIB PP 11- 6- 08.doc Table 1: Capital Improvement Budget Summary for Fiscal Year 2008 -09 (Revised) Estimated Actual Total Estimated Allocations Carryover from Authorization Expenditures Program FY2008 -09 FY2007 -08 FY2008 -09 FY2008 -09 Treatment Plant $10,660,000 $13,171,000 $23,831,000 $12,680,000 Collection System $17,339,000 $27,789,000 $45,128,000 $22,355,000 General Improvements $3,071,000 $5,638,000 $8,709,000 $3,418,000 Recycled Water $399,000 $100,000 $499,000 $405,000 Total this Fiscal Year $31,469,000 $46,698,000 $78,167,000 $38,858,000 NAENVRSEMPosition PapersVNillier12008\Approve Revised Table 1 CIB PP 11- 6- 08.doc 5.a. Items Held Over From Previous Board Meetings Central Contra Costa Sanitary District October 31, 2008 TO: HONORABLE MEMBERS OF THE BOARD FROM: JIM KELLY, GENERAL MANAGER SUBJECT: PROPOSED REVISIONS TO TRAV L POLICY REGARDING BOARD MEMBER CONFERENCE ATTENDANCE AND TRANSPORTATION The attached position paper was held over from the October 16, 2008 Board Meeting. At that meeting, three matters were raised: 1) what is the financial basis for not using a private limousine or chauffeured car, 2) could a better definition of private limousine /chauffeured car be provided, and 3) if AB1234 has additional requirements for Board Members tracking expenditures, should that be in the Travel Policy. Regarding the first item, the matter of not using a private limousine /chauffeured car was based on the suggestion it is an inappropriate use of District funds and it may cause a negative public perception for Board Members or staff to use them. For the purpose of the Travel and Expense Reimbursement Policy, private limousines or chauffeured cars means a vehicle that was hired solely to transport District Board Members and /or staff. The proposed Travel and Expense Reimbursement Policy has been modified to include this clarification. The October 16th proposed changes to the Travel and Expense Reimbursement Policy are shown in red, and the subsequent proposed changes are shown in blue. Finally, the last sentence of the first paragraph of Section 7, on page 6 of the Travel and Reimbursement Policy sets forth the requirements for what receipts Board Members are required to submit. These requirements are contained in AB1234, which applies to elected officials. JMK:sIc Attachment HAGeneral Manager's Directory\Board Documents\2008 \Revison of Board Travel Policy.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER November 6, 2008 5.a. Items Held Over From Previous Board Meeting Date: -&cto$e1`1$ -2iDB8 No.: Board Meetings Type of Action: Subject: PROPOSED REVISIONS TO TRAVEL POLICY REGARDING BOARD MEMBER CONFERENCE ATTENDANCE AND TRANSPORTATION Submitted By: Initiating DeptJDiv.: REVIEWED AND RECOMMENDED FOR BOARD ACTION. E. Boehme James Kelly, Secretary of the Gener Manager District ISSUE: In May 2008, Board Members directed staff to establish a process for Board approval of Board Member conference attendance. They also directed staff to prepare revisions to the Travel Policy to prohibit the use of private limousines or chauffeured cars for transportation. RECOMMENDATION: implement the changes. Review the proposed revisions and determine whether or not to FINANCIAL IMPACTS: None. Funds have already been budgeted for fiscal year 2008 -09 for Board Member conference attendance at California Association of Sanitation Agencies (CASA), California Special Districts Association (CSDA), Water Environment Federation Technical Conference (WEFTEC), and other miscellaneous conferences that may be requested and approved throughout the year. ALTERNATIVES /CONSIDERATIONS: Do not implement one or both changes. Direct staff to prepare other alternatives for Board consideration. BACKGROUND: It has been suggested that, to improve transparency, a more visible process be established for approval of Board Member conference attendance. It has also been requested that a proposed revision to the Travel Policy be brought for Board consideration that would prohibit the use of private limousines or chauffeured cars for transportation. Conference Attendance Previously, Board Member conference attendance was included and approved in the District budget, presented for Board concurrence under General Manager Reports, and Board Members reported out at a Board Meeting upon their return from the conference, in compliance with AB 1234. Most recently, while this matter has been under Board consideration, Board Member conference attendance has been placed on the Consent Calendar for Board action. POSITION PAPER Board Meeting Date: 9ekief4&,-2998 November 6, 2008 Subject: PROPOSED REVISIONS TO TRAVEL POLICY REGARDING BOARD MEMBER CONFERENCE ATTENDANCE AND TRANSPORTATION $44,000 has been budgeted for Board Member conference and meeting attendance for fiscal year 2008 -09. Each conference can cost up to approximately $2,000. In order to provide transparency for the public with regard to Board Member conference attendance, the following options may be considered. (1) Place requests for Board Member conference attendance for the entire Fiscal Year on the Consent Calendar for Board approval. Any additional requests for conference attendance throughout the year would be placed on the Consent Calendar for Board consideration. Board Members would also announce their conference attendance at a Board Meeting prior to attending the conference. (2) Place requests for Board Member conference attendance on the Consent Calendar individually, conference by conference, as they arise throughout the year. Board Members would also announce their conference attendance at a Board Meeting prior to attending the conference. This would amount to approximately six additional Position Papers per year. Each Board Member will provide a report at the Board Meeting on his or her conference attendance in compliance with AB 1234 in any case. Transportation It has been suggested that it is an inappropriate use of District funds and it may cause negative public perception for Board Members or staff to use private limousines or chauffeured cars for transportation. The proposed revision to the existing Travel Policy prohibits the use of such methods of transportation. RECOMMENDED BOARD ACTION: Staff recommends revising the Travel Policy by: • adopting either Option (1) or (2) above with regard to the approval process for Board Member conference attendance, and • determine whether to approve the modification prohibiting the use of private limousines or chauffeured cars for transportation. Revised 10/31/08 - Original 10/17/08 revisions in red, new revisions in blue ' Central Contra Costa Sanitary District Effective Date: 110/77/0087 HUMAN RESOURCES PROCEDURE Subject: Travel and Expense Reimbursement Policy Revised by: Board of Directors POLICY Central Contra Costa Sanitary District shall reimburse elected officials, appointed officials, District Counsel and employees for travel activities that are necessary, legitimate, permissible, and actually incurred when traveling on authorized District business, provided they are itemized, fully explained and approved on the Travel Expense Reimbursement Report. RESPONSIBILITY All District travel must be approved in advance, excepting urgent or emergency travel benefiting the District. Board member travel is approved by budget approval and /or public report, by the General Manager, with Board majority concurrence. The General Manager's report will allow for Board consideration and approval, or denial, as well as meet AB 1234 intent for public disclosure. General Manager, District Counsel and Secretary to the Board travel is approved by Board majority through budget approval, report, or position paper. Employee travel is approved through the budget by the appropriate Department Director. Department Directors' travel will be approved by the General Manager. 2. Travel approval is to be consistent with the budget guidelines for travel. 3. Board Members, the General Manager, and Department Directors are authorized to travel without prior approval for compelling reasons, provided reasonable effort has been made to obtain prior approval. Review of such travel will occur consistent with the approval process identified in item 67 below. 4. While traveling on District business, it is the responsibility of the elected officials, appointed officials and employees to use sound judgment to ensure reasonable expenditure of District funds. District Board members whose expenses do not fall within this policy may be submitted to the Board of Directors for approval, in a public meeting, before the expense is incurred. 5. Board Members' attendance at conferences will be approved by the Board in advance (select either "on an individual basis, as they occur, on a Board agenda" or "for the fiscal year on a Board agenda. ") 56. Travelers are responsible for the timely preparation and submission of their Travel Expense Reimbursement Reports (instructions for completion are on the reverse side of the form) to HUMAN RESOURCES PROCEDURE Sheet 2 of 6 the Accounting Office for payment. Reports must be submitted within 30 days of the event or trip completion. Travelers should retain copies of the Report and receipts for their personal records. 67. The President of the Board of Directors shall approve travel reimbursement documents for all Board Members, District Counsel, the General Manager and the Secretary of the District. The Board President Pro Tem, or in his /her absence another designated Board member, shall have authority to approve travel reimbursement for President of the Board. The General Manager shall approve all travel reimbursement documents for Department Directors. Department Directors shall approve all travel reimbursement documents of those in their charge. HUMAN RESOURCES PROCEDURE Sheet 3 of 6 PROCEDURE 1. Making Travel Arrangements: All District travel arrangements are to be booked through the District's travel service. The District's travel service will follow the approved District Travel Policy and parameters when making travel arrangements for District employees. Information on using the District's travel services is in "CCCSD Parameters /Policy Regarding Use of Travel Service ". Any arrangement not booked through the District's travel service requires approval consistent with item 6 under the Responsibility section of this policy. 2. Transportation: a. Commercial Airline Travel: Elected officials, appointed officials and District employees will travel at the lowest reasonable coach class airfare within the following guidelines: (1) In order to obtain low airfares, a two -hour window policy will be used in searching for a low fare. This window policy involves searching for fares one hour prior to and after the requested departure /arrival time. The lower fare quoted within this two - hour window must be taken unless time constraints make it impossible. (2) Direct flights (one -stop) and connections (change of planes), rather than non - stops, may represent substantial savings to the District. Non -stop flights, if more expensive, cannot be taken if lower direct/ connecting fares are available and does not place an unreasonable burden on the traveler. (3) Early departures and late returns are encouraged to avoid lodging for an additional night. Travel arrangements should allow for full attendance at the subject event. (4) Air travel arrangements should be reserved as far in advance of travel date as possible. Advance planning, rather than last- minute reservations, allow for the opportunity to obtain lower fares. Travel arrangements should be booked a minimum of seven days prior to departure. (5) Reimbursable expenses shall be limited to the actual dates of travel, which shall be as near the event as practical, allowing for timely arrival and departure and the carrier's schedule. If the extension of travel time would achieve lower airfare and would result in a net cost savings to the District, the District will pay for actual costs incurred for hotel and meals only, subject to the other limitations of this policy, provided they do not exceed the costs which would have been incurred without an extension, and the extension is approved in advance. Any additional time (exceeding the above) taken prior to or after the event will be at the employee's time and expense. The District will not reimburse for excess baggage fees if not related to District business. (6) Use of penalty or non - refundable airfares should be considered, depending on the nature of travel, and the certainty that the trip will take place as planned. These lower- cost fares shall be selected at the traveler's discretion. If a change results in HUMAN RESOURCES PROCEDURE Sheet 4 of 6 penalties, the Department Directors shall have the authority to include these charges as reimbursable, if appropriate. (7) If there is a significant difference between the cost of the flight used and a less expensive flight that was available, or if the traveler uses first -class or business class instead of an available coach -class airfare without approval from the appropriate supervisor, the traveler will be required to pay the difference in expense. (8) Use of a specific airline for the purpose of obtaining Frequent Flyer miles will not be authorized, unless the airfare is among the lowest available. b. Car Rentals: The use of a rental car must be authorized in advance. When a car rental is authorized, the elected official, appointed official or employee shall be limited to a compact or mid -size vehicle. A larger vehicle may be rented if for the purpose of transporting a group of District elected officials, appointed officials or employees. A rental car may be authorized only for a business necessity or if it is the most economical means of transportation available. The employee should be prepared to show a cost savings to the District by the use of a rental car as compared to other modes of transportation. When traveling in groups, sharing of cars is encouraged to minimize costs. Collision and liability insurance offered by the rental company should be accepted. Employees should refuel cars before returning them to the rental agency to avoid the large refueling mark -up, when economical. Officials and employees are required to notify the District's Safety and Risk Administrator and the employee's supervisor within 24 hours of any event, incident or accident related to the rental vehicle. c. Taxi and Other Local Transportation: The use of a taxi is authorized when more economical services are not available, or in cases when valid business reasons, such as timing limitations, warrant use of such transportation. If available and practical, public or courtesy limousine transportation to and from airports should be used. Use of private limousines or chauffeured cars hired solely to transport District Board Members and /or staff is prohibited. d. Travel in District Vehicles: District vehicles are available for local seminars. District vehicles shall not be used for personal use when attending seminars. e. Travel in Personal Vehicles: When use of a privately owned vehicle is authorized in lieu of common carrier, reimbursement will be based on the prevailing mileage rate, but will not exceed air coach rate to and from the destination plus local transportation costs. When travel is to a local seminar, mileage reimbursement will be calculated based on the shortest distance to the seminar from home or from work. Reasonable costs for parking and tolls will be reimbursed. 3. Lodging/Telephone: a. Lodging: Employees should limit their stay to a minimum number of nights. Reimbursement for the daily cost of lodging includes only the single occupancy room HUMAN RESOURCES PROCEDURE Sheet 5 of 6 rate and applicable taxes unless shared by more than one District employee. When making reservations for lodging, attempts should be made to obtain a discounted or governmental agency rate. District travelers are expected to use good quality, but reasonably priced hotels or motels wherever practical. (The conference hotel, or its equivalent, at the conference rate, is acceptable lodging for District business.) When attending conferences, a block of hotel rooms may be offered at a reduced rate. Nevertheless, travelers should check with BTM to see if a lower rate, at the same facility, is available b. Telecommunication: On authorized travel, necessary business - related telephone calls, faxes and modem connections incurred may be reimbursed. The cost of personal telephone calls made while attending a seminar will be borne by the employee. However, employees are allowed one personal call of reasonable length and cost per day at District expense. The District's Controller shall make the final determination of reasonable duration and cost on a case -by -case basis. 4. Meals: The cost of each meal is to be reported separately on a daily basis and covers the District traveler only. Receipts for all claimed meals should be included with the travel expense report. The cost of meals includes taxes and tips or service charges as applicable. Purchases of alcoholic beverages shall not be reimbursed. The maximum reimbursement for meals is $64 per day, given proper documentation by providing receipts. In cases where the individual signs up for meals that have a separate cost in addition to the conference registration, that meal would be excluded from the daily allowance. If a District traveler is accompanied by a spouse or guest and the District or a District staff person covers the cost, the District traveler will be billed for the cost of his /her spouse /guest's meal or other related costs. If the guest is a business associate, the cost may be reimbursable. See criteria and requirements in Paragraph 6, Special Expenses Paid by Employee, below. 5. Travel Advances: A request for a travel advance must be made at least two weeks prior to travel by submitting a completed Payment Authorization Request form to Accounting. There will be no travel advances for the cost of airline travel due to the District's payment for the ticket. Advances must be utilized immediately and accounted for within two weeks after completion of a trip. No additional advances will be granted before settlement of an outstanding advance. In the event an advance remains open beyond 30 days, the District may elect to deduct the amount advanced from the employee's next regular paycheck. 6. Special Expenses Paid by Employee: Report only expenses paid by cash, personal check, or credit card. Meal expenses, to be reimbursable, must be an expenditure necessary for the transaction of District business. The Internal Revenue Code requires that specific details showing names of guests and employees, cost, date and place, business purpose, and the business relationship of HUMAN RESOURCES PROCEDURE Sheet 6 of 6 individuals be supplied. Attach receipts whenever possible. Receipts for expenditures of $25 or more are required. 7. Travel Expense Reimbursement Reports: Travel Expense Reimbursement Reports must be legible and in all cases be signed in ink by both the traveler and approver. Each expense shall be clearly and accurately identified and shown on the Report on the day the expense was actually incurred. Report all expenses paid by cash, personal check, credit card, and those paid directly by the District. Auditing and control procedures of the District require that receipts substantiating travel expenses be provided by the traveler whenever possible. Original receipts, including hotel statements, airline ticket stubs, car rental invoices, credit card receipts, paid invoices, or any receipt, which shows the date, location, nature and amount of the expenditure, shall be attached to the Report. When a receipt is not available and the expense is more than $25.00, the traveler shall provide a statement detailing the expenditures and explaining the reason for the lack of a valid receipt. However, i1n accordance with Government Code 53232.3 and Assembly Bill 1234, elected and appointed officials are required to submit receipts documenting each expense claimed. All documents related to reimbursable agency expenditures are public records, subject to disclosure under California Public Records Act. In addition, AB 1234 requires Board members to provide a report, written or verbal, to the Board in open session on the event, conference, seminar or training attended, to be agendized within 30 days of the event. ,�', a-, , 1) INTERNAL AUDIT SEWER SERVICE CHARGE PROCESS 2008 OVERVIEW • Hired Protivity — 1 St year • Excellent, detailed audit • Good recommendations to improve SSC process • Only 1 exception found — good assurance that process works • Staff has implemented most recommendations immediately AUDITOR OBSERVATION Se re ation of Duties: • One employee performs entire job • High level review, no detailed review by supervisor STAFF ACTION Segregation of Duties: • Employee does detailed review • Supervisor will work with Accounting to develop list of calculations & adjustments to review • All adjustments now require two signatures AUDITOR OBSERVATION Alternate Resource /Backup: • Limited backup options for employee working on Sewer Service Charge Inconsistent Document Retention: • Supporting calculations for changes & adjustments not retained STAFF ACTION Alternate Resource /Backup: • Currently cross - training Engineering Assistant II Inconsistent Document Retention: • All pertinent documents & calculations now being filed AUDITOR OBSERVATION HTE System Customization: • System not fully customized Data I me rity: • Spreadsheets need to be secured to guard against unauthorized changes STAFF ACTION HTE System Customization: • Consultant has been engaged to customize software & create additional reports Data Integrity: • Staff has locked all cells containing calculations & spreadsheets are now read only ADDITIONAL ACTIONS: • Accounting will do mini transaction audit annually • Accounting to provide expertise on setting up supervisor review process • Internal audit of SSC process every 2 -3 years • Potential audit area for next year — Capital Improvement Budget Process Agenda Item 6.a.2) Board Meetina of November 6, 2008 Written Announcements: Project Updates a) Transformer Work at Substation 82 Pacific Gas and Electric (PG &E) supplies power to the District's treatment plant at two locations. The main power feed is Substation 82 along Imhoff Drive. PG &E owns and maintains the existing 10- megawatt transformer, which has reached the end of its useful life and they are in the process of replacing the old transformer with a new 16- megawatt unit. A temporary mobile transformer was connected to supply power to the treatment plant and Headquarters Office Building, which will allow removal of the existing transformer. The project consists of removing the old transformer, upgrading the transformer containment area, improving the grounding system, and installing the new transformer and supervisory control and data acquisition (SCADA) monitoring system. Project completion is scheduled for mid - December. Installing the new transformer required two, 12 hour shutdowns, one to connect the temporary transformer and a second to connect the new transformer. During these shutdowns, the District will operate on cogeneration power and a second, smaller PG &E power supply. Backup power will be available from the standby power generators, if necessary. b) A -Line Relief Interceptor Project Milestones The project reached two major milestones. First, construction of the twin 48 -inch sewer pipes under Walnut Creek Channel is complete. The 48- inch sewers are part of the City of Concord Inter -tie and cross the channel just north of the Water World Theme Park, between Home Depot and the Concord Pump Station. The pipes were installed using the open -cut method and were encased in concrete for protection. District staff worked closely with the County Flood Control, State Fish and Game, Regional Water Quality Control Board and East Bay Regional Park District to make sure construction impacts were mitigated and all environmental issues addressed. The recreation trail remained open throughout the work. The second milestone is completion of the 96 -inch interceptor pipe installation by tunneling under Meridian Park Boulevard. The 1700 feet tunneling length is a record for the particular tunneling machine, Earth Pressure Balance Machine (EPBM), and pipe size combination. The pipe was installed on line and grade with minimal disturbance to the Buchanan Fields Golf Course, businesses, and the post office on Meridian Park Boulevard. General Updates /Follow -up c) Green Business Program Certification Staff is pursuing District certification as a green business through the Contra Costa Green Business Program. The effort is led by Assistant Engineer Melody LaBella and members from all departments to gather information on our current practices as they relate to the Contra Costa Green Business Program standards. Next, staff will determine what is required to seek a 3 -year green business program certification. As part of the process, audits will be performed on our water and energy usage, along with an assessment of our solid waste streams and opportunities for additional pollution prevention. Some examples of common standards implemented by green businesses through this program are: • Installation of energy- efficient lights and ballasts • Replacement of pre -1992 toilets with low -flow toilets (with rebates from Contra Costa Water District) • Making double -sided printing and copying standard practice • Specifying that deliveries be shipped in returnable containers, when possible • Selecting equipment with energy saving features (Energy Star® logo) • Setting refrigerators between 38 °F — 42 °F and freezers between 10 °F — 20 °F Staff will report progress to the Board periodically. If there are any significant cost impacts, those will be brought to the Board for discussion and guidance as part of the periodic updates. d) Loss of East Bay Municipal Utility District (EBMUD) Hydrant Meters CSO routinely fields four, two- person crews that operate hydro trucks for sewer cleaning. These trucks require a source of water for sewer cleaning, normally potable water from fire hydrants. The trucks are normally filled four to six times per day. Despite a request to be exempted from the recall of EBMUD hydrant meters, EBMUD has prohibited the use of hydrant meters for sewer cleaning. EBMUD has required the use of recycled water for preventive sewer maintenance. They have taken similar action with many cities and agencies that do sewer cleaning in the EBMUD service area. At this time, we believe that the City of Alameda has received an exemption. A copy of the October 17, 2008 letter responding to the District request is provided as part of this announcement. Recycled water hydrants providing District water are available on Marsh Drive in Pacheco and at the intersection of Boyd Road and Hawthorne in Pleasant Hill. Staff is currently in the process of siting at least one more hydrant in Pleasant Hill but these locations are far from the portions of the District that are in the EBMUD water service area. DERWA (Dublin San Ramon Services District and EBMUD Recycled Water Authority) has provided recycled water hydrants in three locations in San Ramon. These are at Pine Valley Road west of Alcosta Road and in the Dougherty Valley area on New Dougherty Road and Albion Road. EBMUD is constructing a recycled water truck fill site on Mount Diablo Boulevard near the Lafayette reservoir. It will be operating in five weeks. In order to minimize travel time to sources of recycled water, staff plans to rent at least one water tanker truck with driver to bring recycled water to areas of the District that are in EBMUD's water service area for use by our trucks. Staff is investigating the siting of stationary rental tanks at various locations; e.g. Danville, Moraga, and Orinda — most likely a city corporation yard. The aforementioned water tanker truck would fill up from the District's recycled water system and make a circuit filling such tanks for use by the hydro trucks. As CSO deals with this situation, it may be necessary to use overtime to meet necessary sewer cleaning goals. All of these possible actions will incur expenses that were not anticipated in the fiscal year 2008 -2009 budget. EBMUD's recall of hydrant meters is a significant impact on the District's sewer maintenance program. P EAST BAY _> MUNICIPAL UTILITY DISTRICT October 17, 2008 Mr. gill Brennan Central Contra Costa Sanitary District 5019 Imhoff Pl. Martinez, CA 94553 -4392 Dear Mr. Brennan: 6.a.2)d) This letter is in response to your request to be exempt from suspending the use of your hydrant meters for sewer cleaning and sanitary sewer overflow response As part of the East Bay Municipal District's Drought Management Program flushing sewers, except in cases of emergency is prohibited. You are required to use recycled water for preventive sewer maintenance. I am enclosing the Recycled Water for Construction & Other Uses handout for your reference. EBMUD will permit retention of three hydrant meters for emergency response during times when a recycled water facility is not available. You will need to return the other six to our offices at 375 11th Street, Oakland, no later than November 7, 2008. Sincerely, Agenda Item 6.a.2) Board Meeting of November 6, 2008 Additional Written Announcements: Recognition e) Special District Leadership Foundation Recognition Member McGill has completed the four -part Special District Leadership Academy, comprised of: Governance Foundations, Setting Direction and Community Leadership, the Board's Role in Finance and Fiscal Accountability, and the Board's Role in Human Resources. He has also completed over ten hours of elective courses, and has received the Recognition in Special District Governance Certification from the California Special Districts Association in recognition of his completion of the training requirements. General Updates /Follow -up f) El Toyonal Drive in OrInda Replacement of approximately 450 feet of 6 -inch VCP has been authorized in easements at 142/148 El Toyonal in Orinda. The existing line needed extensive repairs and access became available when the homeowner contacted the District to work on the line while construction /remodeling work was ongoing. The District's contractor, California Trenchless Inc.CTI, is wrapping up construction work on the Camino Pablo Trunk Sewer Improvement & Flush Kleen Force Main Project in the vicinity of El Toyonal. CTI has agreed to perform the additional pipebursting work at the bid unit price; this cost is $49,500. g) LAFCO to Consider CCCSD Out Of Agency Service Agreements CCCSD's application for Out of Agency Service Agreements in Alhambra Valley will be considered at the Local Agency Formation Commission ( LAFCO) meeting on Wednesday, November 12, 2008 at 1:30 p.m. in the Board of Supervisors Chamber in Martinez. The application addresses three developed properties just outside the Urban Limit Line (two owned by the Hemplflings on Briones Road and one owned by the Sharmans on Millthwait Drive). As anticipated, the LAFCO Executive Director recommends denial of the agreements, but notes in her staff report that denial does not preclude CCCSD from applying to LAFCO to annex these parcels in the future. Other options presented to LAFCO in the staff report include approving agreements with one or both property owners. The agenda and staff report are available at www.contracostalafco.org. h) United States Environmental Protection Agency Operations & Maintenance Excellence Award The United States Environmental Protection Agency ( USEPA) recognizes municipalities and industries for outstanding and innovative technological achievements in wastewater treatment and pollution abatement programs. First and second place national winners received their awards at the annual Clean Water Act Recognition Awards presentation during the Water Environment Federation's Annual Conference, which was held in Chicago, Illinois on October 20, 2008. The District received a second place Operations and Maintenance Excellence Award in the category of large secondary treatment plants. Board Members Barbara Hockett and Michael McGill, along with General Manager James Kelly and Senior Engineer Randy Schmidt, were present to receive the award, which was presented by USEPA Assistant Administrator for Water Ben Grumbles. USEPA Region 9 Director of Water Division, Alexis Strauss, will attend the District's November 20, 2008 Board Meeting to present the award to the full Board. 6.J.!0a) Water Environment Federation Technical Exhibition and Conference October 19, 2008 through October 22, 2008 Barbara Hockett Sunday, October 19, 2008 Disinfection Strategies to Keep Pace with Reuse Trends • Reuse Trends and Effluent Quality • Current Regulatory Overview • Achieving Pathogen Limits • Microconstituents • Quiz • Technologies Overview • Chlorination/Chloramination • UV • Ozone • Advanced Oxidation Process Exhibits: • Infi- Shield • Thermyslis — High Temperature Fluid Bed Thermal Oxidation • Hydro International • American Water Works Association • Cornell — Pump Company • Concrete Sealants, Inc. • Vulcan Industries — Screens • Porex Filtration Monday, October 20, 2008 AAEE /AIDIS/WEF Breakfast Richard Lanyon from the Chicago Water Reclamation District — Steering Committee of the National Biosolids Partnership and Chair of WEF Sustainability Community of Practice presented. He spoke on climate change, development pressures, economics of water, environmental advocacy, green technology and regulatory oversight, sustainability, wastewater reuse and water efficiency and watersheds. He also shared their Pharmacy take back program. Exhibits: • Too many to list. EPA Clean Water Act Recognition Awards CCCSD Second place award Chicago River Tour — Metropolitan Water Reclamation District of Greater Chicago The Metropolitan Water Reclamation District of Greater Chicago is the 119 year old autonomous government agency responsible for storm water management for all of the 946 square miles of Cook County. The District operates one of the largest wastewater treatment plants in the world, the Stickney Water Reclamation Plant. They have six other plants and 23 pumping stations. They manage 76 miles of navigable waterways and 1000 miles of small streams. They clean 1.4 billion gallons each day producing 200,000 dry tons of solids each year. The tour elaborated on their outfall, the Chicago River and the locks developed to change the flow of the river to divert their effluent to the Mississippi River and out to the Gulf of Mexico. Tuesday, October 21, 2008 Exhibits: • Small Vactor Truck demonstration for difficult to access properties • Koch Membrane Systems • ADS Environmental Services — presentation/graphics on the Sociology of Sewers CMOM: Clean and Assess Conditions • FOG: Collaborating to Keep the Pipes Clear • Interceptor Maintenance Cleaning Plan — Evaluating Sewer Cleaning Needs May Yield Combined Sewer Overflow Abatement (closed a joint by a river and reduced flow to the treatment plant dramatically) Collection Systems Luncheon Mr. Kevin Shafer, the Executive Director of the Milwaukee Metropolitan Sewerage District presentation: A Climate Change for Wastewater Utilities and Collection Systems covered the changing regulatory climate regarding Green Infrastructure initiatives, the public perception of climate change regarding collection system management and the efforts to improve water quality. Wednesday, October 22, 2008 Microconstituents in the Aqueous Environment: What do we Know and What Does it Mean? • Effects of Pharmaceuticals and Personal Care Products in the Environment: Current and Future Perspectives • What is an Environmental Risk Assessment for a Pharmaceutical Compound? A Global Overview • Ecological Risk Assessment of Personal Care Product Ingredients • The Regulatory Approach (FDA) • Microconstituents in the Aquatic Environment: Regulatory Perspective from the U.S. EPA Office of Water • Departure Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2008 No.: 7.a. Engineering Type of Action: AUTHORIZE AGREEMENT AND ADOPT RESOLUTION Subject: AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH CONTRA COSTA COUNTY AND THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY REGARDING AMENDMENT OF SANITARY SEWER EASEMENTS IN THE IRON HORSE CORRIDOR; AND ADOPT A RESOLUTION ACCEPTING THE FIRST GRANT AMENDMENT PREPARED UNDER THE TERMS OF THE MOU (DISTRICT PROJECT 1541 - PARCELS 8 -IHC AND 9B -IHC) Submitted By: Initiating DeptdDiv.: Stephanie Gronlund, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 34 - — S. and C. Swanson A. Farrell K. Alm a-0 M. Ke , eneral Ma ger ISSUE: The Board of Directors' authorization is required for execution of a Memorandum of Understanding (MOU) with Contra Costa County (County) and Contra Costa County Redevelopment Agency (Redevelopment Agency), and a resolution of the Board of Directors is required to accept, amend or quitclaim easements and to record documents. RECOMMENDATION: 1) Authorize the President of the Board of Directors and the Secretary of the District to execute a MOU with the County and the Redevelopment Agency regarding amendment of sanitary sewer easements in the Iron Horse Corridor (IHC); and 2) Adopt a resolution accepting the first grant amendment under the terms of the proposed MOU, and authorizing staff to record the grant amendment documents with the Contra Costa County Recorder. FINANCIAL IMPACTS: The District will incur no direct costs, beyond staff time, to execute the MOU and to record amendments to the original grants of easements. ALTERNATIVES /CONSIDERATIONS: The Board could decline to authorize the MOU, which is not recommended. Failure to authorize the MOU could prevent recording amendments to the grants of easements, which would restrict the District's ability to perfect and adequately enforce the District's land rights along the IHC, formerly the Southern Pacific Railroad right of way. BACKGROUND: In 1985 -86, the District purchased grants of easements from the County for our existing and future sewers in the Southern Pacific Railroad right of way N: \ENVRSEC \Position Papers \Gronlund\2008 \PP MOU -IHC Easement Amend Final 11- 6- 08.doc Page 1 of 2 POSITION PAPER Board Meeting Date: November 6, 2008 subject. AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH CONTRA COSTA COUNTY AND THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY REGARDING AMENDMENT OF SANITARY SEWER EASEMENTS IN THE IRON HORSE CORRIDOR; AND ADOPT A RESOLUTION ACCEPTING THE FIRST GRANT AMENDMENT PREPARED UNDER THE TERMS OF THE MOU (DISTRICT PROJECT 1541 - PARCELS 8 -IHC AND 9B -IHC) (now the IHC) from Monument Boulevard in the north to San Ramon in the south when the County purchased the right of way from Southern Pacific Transportation Company (SPTC). Because of the lack of surveying information of property boundaries and utility location and detailed engineering for future pipelines, coupled with the short time frame to acquire the property and easement purchases, language was added to the original grants of easements to allow for the adjustment of easement descriptions once the location of the existing and anticipated future sewers were known. The purpose of the proposed MOU, which was jointly drafted by District Counsel and County Counsel, is to detail the process and intent of the Parties (District, County and Redevelopment Agency) with respect to amending certain sewer easement locations within the IHC. The County Board of Supervisors authorized execution of the MOU for itself and sitting as the Redevelopment Agency Board at their October 7, 2008 meeting. On March 20, 2008, the Board of Directors authorized the General Manager to execute an agreement with a cost ceiling of $500,000 with BKF Engineers for technical consulting services for the A -Line Easement Acquisition -Phase 2 project. The agreement's scope of work includes field surveys of the actual locations of the existing sewer along the IHC and preparation of exhibits (plats and legal descriptions) for future amendments to grants of easements. As outlined in the proposed MOU, once the District completes a survey(s), the District will submit the survey(s) and the proposed amended easement(s) to County staff for review and approval. The first grant amendment, prepared under the terms of the MOU, is ready for consideration by the Boards of all Parties. District staff submitted the amendment to the grant of easement for Parcels 8 -IHC and 9B -IHC, which was reviewed and approved by County staff. This grant amendment was approved by the Board of Supervisors and the Redevelopment Agency Board at their October 14, 2008 meeting. RECOMMENDED BOARD ACTION: 1) Authorize the President of the Board of Directors and the Secretary of the District to execute a MOU with Contra Costa County and the Contra Costa County Redevelopment Agency; and 2) Adopt a resolution accepting an amendment to the Grant of Easement for Parcel 8 -IHC and Parcel 9B- IHC (District Project 1541), and authorizing staff to record the grant amendment documents with the Contra Costa County Recorder. N:\ENVRSEC \Position Papers \Gronlund\2008 \PP MOU -IHC Easement Amend Final 11- 6- 08.doc Page 2 of 2 a Item 7.a. Memorandum of Understanding Easement Amendments Along __ -Iron Horse _Corridor___ Central Contra Costa Sanitary District , Contra Costa County, and Contra Costa County Redevelopment Agency Board Presentation Curtis Swanson November 6, 2008 Project Background CCCSD installed sewers in Southern Pacific Railroad right -of -way under licenses. SP ceased rail operations and decided to sell right -of -way. County purchased 26 miles of SP right -of -way (now Iron Horse Corridor) in 1985. District purchased 19 miles of easements from County and County Redevelopment Agency for existing and future sewers in Iron Horse Corridor. Original Grant of Easements • At the time of purchase, the County & CCCSD did not have accurate survey descriptions for: • Property boundaries • Existing Sewers • Other utilities, pipelines, and highway overpass foundations. • Purchase schedule did not allow for extensive records research & surveying. • Original easements included conditions for adjustments to sewer locations once detailed field surveys were completed. 2 �,xann n ar o...�u SPR /W AND A -LINE — -LINE RELIEF INTERCEPTOR — SPR /W ;y t!ar a wvaw Original Grant of Easements • At the time of purchase, the County & CCCSD did not have accurate survey descriptions for: • Property boundaries • Existing Sewers • Other utilities, pipelines, and highway overpass foundations. • Purchase schedule did not allow for extensive records research & surveying. • Original easements included conditions for adjustments to sewer locations once detailed field surveys were completed. 2 Memorandum of Understanding e Purpose of MOU: Clarify intent & process of the CCCSD, County, and County Redevelopment Agency regarding amending locations of the original easements within the Iron Horse Corridor. e Includes a template document for future Easement Amendments. a Target completion by July 2009. Staff Recommendation Authorize President of the Board and Secretary of the District to execute a Memorandum of Understanding (MOU) with County and County Redevelopment Agency. Adopt Resolution accepting an amendment to Grant of Easement and authorizing staff to record the documents. 3 ��.3.a1 Water Environmental Federation Technical Exhibition and Conference Chicago, IL October 19, 2008 through October 22, 2008 Michael McGill Sunday, October 19, 2008 • 8:30 a.m. to 4:30 p.m. Disinfection Strategies to Keep Pace with Reuse Trends (Workshop) Monday, October 20, 2008 • 7:30 a.m. to 8:30 a.m. AAEE /AIDISNVEF Breakfast • 8:30 a.m. to 12 p.m. Pathogens and Priority Pollutants in Recycled Water • 11:30 a.m. to 1:30 p.m. EPA Awards • Exhibits • 5 p.m. to 6:15 p.m. Industrial Networking Reception Tuesday, October 21, 2008 • '8:30 a.m. to 10 a.m. Reclaimed Water Treatment Technologies • 10:30 a.m. to 12 p.m. Wetlands as a Reuse Treatment Technology • 12 p.m. to 1:30 p.m. Collection Systems Luncheon • Exhibits Wednesday, October 22, 2008 • 8:30 a.m. to 12 p.m. Energy /Conservation and Management for Water and Wastewater Facilities 6. d.3. b) California Special Districts Association Training Thousand Oaks, CA October 24, 2008 Michael McGill Friday, October 24, 2008 • Overview of Academy • Mindset of the Board Member • Board Role in Human Resources • Determining the HR Health of Your District • Adopting HR Policies • Confidentiality & Legal Liabilities • Evaluating the General Manager Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2008 No.: 7.b. Engineering Type of Action: APPROVE PROJECT REVISIONS subject: APPROVE REVISIONS TO THE COLLECTION SYSTEM OPERATIONS DIVISION (CSOD) ADMINISTRATION, CREW AND WAREHOUSE FACILITY IMPROVEMENTS PROJECT (DP 8208) Submitted By: Initiating Dept./Div.: Don Berger, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: �i D. .. _ , Farr-ell A. James Melly, General Manager ISSUE: On May 24, 2007, the Board of Directors approved a project description for the CSOD Administration, Crew and Warehouse Facility Improvements so that staff could complete the environmental review and initiate the design process. At its December 20, 2007 meeting, the Board approved the project for submission to the City of Walnut Creek, which has since approved the project and issued a Conditional Use Permit (CUP). The CUP required several revisions to meet regulatory and City requirements that increased the project cost. Additional revisions to the project are being recommended by staff related to Leadership in Energy and Environmental Design (LEED) certification and earthquake design that will also affect costs. RECOMMENDATION: Approve the project revisions for the CSOD Administration, Crew and Warehouse Facility Project (DP 8208) so that staff can complete the design process. FINANCIAL IMPACTS: The estimated building construction cost has increased from $11 million to $13.5 million, partially due to inflation since May 2007, and partially due to added scope items. The associated total project cost has increased from $13 million to $16 -17 million for those same reasons, depending on the amount of contingency assumed. ALTERNATIVES /CONSIDERATIONS: The Board could decide not to approve the revisions and request staff to spend additional funds to analyze less costly alternatives. This is not recommended. This project has gone through an extensive alternative analysis over the last five years and staff believes any further reduction in size or functionality would compromise its effectiveness. In order to take advantage of the current competitive bidding climate, staff recommends that the project design be completed and the project bid as quickly as possible. N: \ENVRSEC \Position Papers \Berger\2008 \CSO Pos Paper - Project Revisions 11 -06 -08 r1.doc Page 1 of 3 POSITION PAPER Board Meeting Date: November 6, 2008 Subject APPROVE REVISIONS TO THE COLLECTION SYSTEM OPERATIONS DIVISION (CSOD) ADMINISTRATION, CREW AND WAREHOUSE FACILITY IMPROVEMENTS PROJECT (DP 8208) BACKGROUND: The Board and staff began discussions about potential improvements to the Collection System Operations facilities in October 2003. At that time, there was a concern expressed by the Board that we were piecemealing individual renovation and improvement projects without taking a comprehensive look at the current and future needs of CSOD. Board and staff collaborated on a number of alternatives from that time until May 2007, when a project description was finally agreed upon and adopted. The recommended project consisted of a new approximately 22,500 square foot administration /crew /warehouse building at the location of the existing warehouse building at CSO. The project also included demolition of the existing crew /administration building and construction of site improvements, including a new parking area, a new ramp between the middle yard and the upper yard and landscaping. At that time, the estimated construction cost was $11 million and the total estimated project cost was $13 million in May 2007 dollars. Between May 2007 and August 2008, staff navigated an extensive review process by the City of Walnut Creek. In order to meet current storm water control regulations, as well as requirements of the City with respect to landscaping and parking, a number of features were added. To control storm water; bio swales, infiltration trenches and a green roof were added to the project, as well as covers on material storage areas. To meet the City of Walnut Creek parking requirements, additional parking in the middle and upper yard was added, necessitating the addition of some paving and lighting improvements. Escalating the $11 million construction cost to August 2008, and adding the cost of the improvements resulting from the City review process, brings the construction cost to approximately $12,275,000. The building, as initially designed, had many green features, due to its southern exposure and being built into a hillside. Using these features, the building should be able to achieve a Basic Certification from the LEED. This is the lowest level of LEED certification. Because it would not be that difficult for the building to achieve the Gold level of certification, staff commissioned a study to enumerate design changes and costs for achieving the higher certification level. The findings were that an added investment of $300,000 in construction costs was needed. Of this, approximately half was for improvements that would reduce energy consumption. However, the cost savings from the reduced energy consumption were not anticipated to be enough to pay back the cost of the equipment within its useful life. Conversely, the energy saving features will improve the HVAC controls and the indoor air quality, and staff believes they are a good investment on their own merits while enabling the new building to achieve Gold Certification. The additional features for LEED Gold Certification brings the construction cost to approximately $12,575,000, in August 2008 dollars. N: \ENVRSEC \Position Papers \Berger\2008 \CSO Pos Paper - Project Revisions 11 -06 -08 r1.doc Page 2 of 3 POSITION PAPER Board Meeting Date: November 6, 2008 Subject: APPROVE REVISIONS TO THE COLLECTION SYSTEM OPERATIONS DIVISION (CSOD) ADMINISTRATION, CREW AND WAREHOUSE FACILITY IMPROVEMENTS PROJECT (DP 8208) Since May 2007, staff has been investigating the seismic stability of District - occupied buildings. Unfortunately, our existing office buildings are going to require significant seismic retrofit investment over the next several years. We currently have no District facilities that meet seismic requirements for essential facilities, such that they could be returned to service immediately after a large seismic event. For this reason, and because it would be beneficial if CSOD could continue to operate out of the Walnut Creek facility without interruption in the event of a large seismic event, staff requested an estimate of the added cost to construct the new CSOD facility as an essential facility. These added costs include $250,000 for an emergency generator to power the entire building and $600,000 for additional seismic bracing. These additions bring the estimated construction cost in August 2008 dollars to $13,425,000. The total project cost includes the estimated construction cost plus the engineering and administration costs and the City permit fees. It is estimated that these additional costs will be 25% or $3,300,000 for engineering and administration and $500,000 for City permit fees, bringing the estimated total project costs to $17,725,000. The permit fees were not originally estimated to be that large, based on fees previously assessed for construction of the new parking area under the freeway and the retaining wall. These issues were presented to the Board in an oral and written report at the October 16, 2008 Board meeting. A copy of the written report provided for the October 16, 2008 meeting is attached for your convenience. At its December 20, 2007 meeting, the Board also approved a Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program for this project. A Notice of Determination subsequently was filed in compliance with the California Environmental Quality Act (CEQA). Staff has reviewed the recommended project description revisions and concluded that no changes are required in the Mitigated Negative Declaration, mitigation measures, and Board findings. RECOMMENDED BOARD ACTION: Approve revisions to the CSOD Administration, Crew and Warehouse Facility Project (DP 8208) so that staff can complete the design process. N: \ENVRSEC \Position Papers \Berger\2008 \CSO Pos Paper - Project Revisions 11 -06 -08 rl .doc Page 3 of 3 Central Contra Costa Sanitary District October 8, 2008 TO: HONORABLE MEMBERS OF THE BOARD VIA: JAMES M. KELLY, GENERAL MANAGER a C FROM: ANN E. FARRELL, DIRECTOR OF ENGINEERING SUBJECT: STATUS UPDATE — COLLECTION SYSTEM OPERATIONS FACILITY We recently received the design development submittal for the Collection System Operations (CSO) Administration, Crew and Warehouse Facility, and an updated construction cost estimate. Some representative drawings are attached for your information. These drawings represent a 35% approximate level of completion. Our last detailed discussion about the CSO facility design and cost occurred at the May 24, 2007 Board meeting. At this time, the Board approved the project description for a 22,500 square foot facility with an estimated total project cost of $13 million, and initiated the environmental review and design processes. Since that time, the environmental review and the City of Walnut Creek planning process have been completed. Staff has also done some additional work on potential green attributes of the building and the function of the facility during emergency operations. As a result of this additional work, there have been some potential cost increases. A discussion of the original cost and the cost increases is presented below. In April 2007, the Board was presented with a construction cost estimate of $11.3 million and total project cost of $13 million in April 2007 dollars. According to the Engineering News Record Index, building costs in the bay area increased 6% from April 2007 to August 2008. Therefore, the April 2007 construction cost estimate escalated to August 2008 dollars would be approximately $12 million. Since that time, a number of items have been added to the design based on requirements of storm water regulations or of the City of Walnut Creek. First, current storm water requirements required state of the art stormwater control structures to ensure that runoff quantity was not increased with the increase in impervious surfaces. The design now includes a green roof on the building as well as infiltration trenches and bioswales throughout the yard, and pervious pavement in the middle yard. Second, in order to provide adequate parking for all staff and to meet the parking requirements of the City of Walnut Creek, it was necessary to put parking in the middle and upper yards, including handicapped parking by the vehicle maintenance facility. Because this requires re- striping and the pavement was in poor condition, staff HAGeneral Manager's Directory\Board Documents\2008 \CSOD Project Board update Oct 08 web input AF.doc recommended that the entire area be slurry sealed before re- striping. In addition, the poor lighting in the area created safety issues, so the lighting will be improved since staff will be routinely parking in these areas. Third, current storm water regulations require a more sophisticated materials storage area as well as a cover for contaminated spoils and trash. In addition to required items, there are a number of elective items that have been added to the project which the Board may elect to delete in order to reduce project costs. First, because of the required green infrastructure and the orientation of the building with a southern exposure and nestled into the earth on the north side, we are able to obtain a large number of points toward Leadership in Energy and Environmental Design (LEED) certification of the building. The building with no additions can achieve a silver certification. With some additions to the HVAC system to make it more energy efficient and to improve indoor air quality, we can attain the additional points to achieve gold certification. The additional costs for these features are about $300,000 and would provide the benefit of reduced energy costs and improved air quality. This is a Board policy decision. Staff believes that as an agency with an environmental mandate, it is appropriate to consider this expense in an effort to demonstrate the District's commitment to be "green ". Second, the building as originally conceived was not priced as a critical facility that could survive a major seismic event and be immediately occupied thereafter. Rather, it was designed as a typical office building for life and safety, but likely requiring some repairs after a major seismic event. In light of the recent information on the vulnerability of the Martinez administration and plant operations buildings to seismic events and the potential desirability of having a facility that can survive a major quake and be available to function as an emergency operations center, staff requested costs for added features and seismic bracing to the CSO facility. These features add approximately $850,000 to the construction costs. The CSO facility is at the geographical center of the District and as such is a logical place to dispatch staff to deal with issues throughout the District. The MPR room, which up to now has been considered the primary Emergency Operations Center, is currently being evaluated for its ability to withstand a major seismic event and is expected to require significant upgrades. In addition, ancillary plant operations facilities, such as locker rooms, lunch room, offices, are also expected to be under design for a major seismic event. Given the uncertainty associated with the District facilities in Martinez, the Board should give thoughtful consideration to designing the CSO facility for immediate occupancy after a major seismic event. At the Board meeting of October 16, 2008, staff will present additional information on the elective scope items and will ask for Board direction on whether these items should be incorporated into the design. The current cost estimate, in August 2008 dollars is shown on the following page. HAGeneral Manager's Directory\Board Documents\2008 \CSOD Project Board update Oct 08 web input AF.doc Collection System Operations Administration, Crew and Warehouse Facility Updated Cost Estimate August 2008 Item Base Cost GEBC (GEBC = Green Emergency Building Cost) Required Facilities: Basic Building Construction $11,600,000 Stormwater Management/Green Infrastructure $425,000 Vehicle Maintenance Area Additional Parking $100,000 Covered Materials Loading Area/Trash Enclosure $150,000 Subtotal Required Facilities: Added Costs Green Building Certification at Gold Level Subtotal Required & Green Building Certification Added Costs for Emergency Operations Center Seismic Bracing Emergency Generator Total Estimated Construction Costs (August 2008) Engineering and Administration (Est. @ 25 %) City Permit Fees (Estimated) Total Project Costs (August 2008) *Potential Cost Increases *Potential Cost Decreases cc: Bill Brennan Don Berger $12,275,000 $12,275,000 $300,000 $12,575,000 $12,275,000 $600,000 $250,000 $13,425,000 $12,275,000 $3,300,000 $3,075,000 $500,000 $450,000 $17,725,000 * $15,800,000* Escalation to mid point of construction Unknown contingencies Impacts of recessionary economy HAGeneral Manager's Directory\Board Documents\2008 \CSOD Project Board update Oct 08 web input AF.doc O V L On78 pj� O I 00 QD �� Ig p Z °� r o° a p o0 on P U OJ CROFT w s� MORELLO PVE Q J _ tirD a NA N € ,n E2dVli c OC uj U Z. 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Budget and Finance Type of Action: APPROVE RESOLUTION Subject: APPROVE RESOLUTION TO ADOPT THE GASB 45 PUBLIC AGENCIES POST - RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT AND MASTER PLAN DOCUMENT. AUTHORIZE STAFF TO INVEST $11.2 MILLION IN THE TRUST AND ADOPT BOARD INITIAL INVESTMENT POLICY. Submitted By: Debbie Ratcliff, Controller Initiating Dept. /Div.: Administrative / Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. RatQkT R. Mu a K. Alm James Kelly, /Genera , anager ISSUE: Board authorization is needed to adopt the GASB 45 Public Agencies Post - Retirement Health Care Plan Trust Agreement and Master Plan Document, and to invest District monies in the Trust. RECOMMENDATION: Approve a Board Resolution adopting the GASB 45 Public Agencies Post - Retirement Health Care Plan Trust Agreement and Master Plan Document. Authorize staff to invest $11.2 million in the Trust and adopt Board Initial Investment Policy. FINANCIAL IMPACTS: The adoption and subsequent establishment of a GASB 45 Post - Retirement Health Care Trust with PARS would include fees for administrative services, trustee, and investment management services, and additional fees associated with mutual fund investments. All- inclusive fees would be approximately $100,000 for a $10 million dollar investment balance and approximately $350,000 when the trust balance reached $50 million. Currently, the Budget and Finance Committee recommends leaving the $11.2 million invested in LAIF until the financial markets stabilize. ALTERNATIVES /CONSIDERATIONS: The Board could consider contracting with CALPERS or an individual bank, however, as discussed in prior meetings, this is not recommended. Please note that the Budget and Finance Committee has developed a written Board Initial Investment Policy which is attached. BACKGROUND: The Governmental Accounting Standards Board changed the accounting and financial reporting requirements for other post employment benefits, known as OPEB, with the implementation of its Statement Number 45 — Accounting and Financial Reporting by Employers for Post Employment Benefits Other than Pensions. The District provides medical insurance benefits to its retirees who meet certain eligibility requirements. Under Statement 45, governments are required to actuarially N:\ ADMINSUP\ADMIN \POSPAPER\Approve Resolution to Adopt Public Agencies Post - Retirement HCP 11- 06- 081.doc Page 1 of 3 POSITION PAPER Board Meeting Date: November 6, 2008 Subject: APPROVE RESOLUTION TO ADOPT THE GASB 45 PUBLIC AGENCIES POST - RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT AND MASTER PLAN DOCUMENT. AUTHORIZE STAFF TO INVEST $11.2 MILLION IN THE TRUST AND ADOPT BOARD INITIAL INVESTMENT POLICY. calculate their total OPEB obligation and the annual amount necessary to fund the obligation called the Actuarially Required Contribution (the ARC). Statement 45 requires footnote disclosure of the funding status of the total obligation, and requires recording a liability for unpaid portions of the ARC. Statement 45 does not require funding to a trust, but unpaid liabilities on the books affect financial statement ratios and may adversely impact credit worthiness over time. The Board approved the inclusion of $5 million dollars (less the actual retiree health care premiums) each year for the FY 2006 -2007 and FY 2007 -2008 budgets to be set aside toward the OPEB obligation. An additional $5.2 million was approved in the FY 2008 -2009 budget. On May 1, 2008 the Board approved the establishment of a GASB 45 Trust with PARS to fund annual contributions each year as directed by the Board. The purpose of the trust is to accumulate, hold, and distribute medical benefit plan assets for the exclusive benefit of retirees within the meaning of IRS Code Section 115. The Board Budget and Finance Committee has discussed various funding options and investment strategies. With the current volatility in the market, the Finance Committee is recommending a moderate investment strategy (see attached Investment Guidelines Document) which could be changed to moderate aggressive in the future with improved interest income opportunity. Further, to reduce the volatility and take advantage of dollar cost averaging, the Committee recommends investing the $11.2 million over twenty (20) months. The dollars would be moved after the first Committee meeting each month, allowing the flexibility of decreasing or ceasing the contribution amount based upon economic conditions. The Board of Directors Initial Investment Policy for the Budget and Finance Committee for GASB 45 Trust Investments is also attached. At a future date, the Committee may recommend a change in investment strategy based on the economy. If the Board authorizes a GASB 45 contribution for FY 2009 -2010, the Committee would recommend an investment strategy for that contribution. If the Board approves the change, the Board Initial Investment Policy would be revised. Two signatures would be required on any Trust transaction (the Controller and Director of Administration). Additionally, any amount exceeding $2 million would also require the General Manager's signature. The GASB 45 Public Agencies Post - Retirement Health Care Plan Trust Agreement, Master Plan Document and related legal documents have been reviewed by the Budget and Finance Committee and District Counsel. The related legal documents will be N:\ ADMINSUP\ADMIN \POSPAPER\Approve Resolution to Adopt Public Agencies Post - Retirement HCP 11- 06- 081.doc Page 2 of 2 POSITION PAPER Board Meeting Date: November 6, 2008 Subject: APPROVE RESOLUTION TO ADOPT THE GASB 45 PUBLIC AGENCIES POST - RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT AND MASTER PLAN DOCUMENT. AUTHORIZE STAFF TO INVEST $11.2 MILLION IN THE TRUST AND ADOPT BOARD INITIAL INVESTMENT POLICY. signed by the Plan Administrator, as noted in the Board Resolution. All the documents are available for review upon request. RECOMMENDED BOARD ACTION: Approve a Board Resolution adopting the GASB 45 Public Agencies Post - Retirement Health Care Plan Trust Agreement and Master Plan Document. Authorize staff to invest $11.2 million in the Trust, and adopt Board Initial Investment Policy. N: \HDMINSUP\ADMIN \POSPAPER\Approve Resolution to Adopt Public Agencies Post - Retirement HCP 11- 06- 081.doc Page 2 of 2 BOARD OF DIRECTORS INITIAL INVESTMENT POLICY FOR THE BUDGET AND FINANCE COMMITTEE FOR GASB 45 TRUST INVESTMENTS Board Initial Investment Policy The Board delegates full authority to the Budget and Finance Committee and staff to oversee the day to day operations of the GASB 45 Trust Portfolio. This oversight will be accomplished with the expertise of HighMark Capital and the attached Investment Guidelines Document for a moderate investment strategy, see attached. The Budget and Finance Committee and staff will use a dollar cost averaging approach to entering the financial market and investing dollars. The $11.2 million (for Fiscal Years 2006 -2007 through 2008 -2009) designated for the GASB 45 Trust will be invested over 20 months. Should the market fluctuate significantly, the Committee and staff have the authority to decrease or cease the monthly contribution amount. If the Committee decreased or ceased the monthly contribution, it would be reported to the Board of Directors at the next Board meeting under the Committee Action Summary review. FY 2009 -2010 Board Investment Policy The FY 2009 -2010 budget will identify the appropriate funding for the GASB 45 Trust for that fiscal year. The Budget and Finance Committee will make a recommendation to the Board to develop an investment schedule for the funds. The Board's decision will be documented in a revised investment policy to ensure compliance by staff, the Committee and HighMark Capital. The Committee and staff will meet monthly with HighMark Capital to review performance results and discuss any changes that may be necessary. The Committee will report the results of the investment portfolio and significant decisions to the Board. N :\ADMINSUP\ADMIN \RATCLIFF\Board of Directors IG to the BFC for GASB 45 11- 06- 08.doc INVESTMENT GUIDELINES DOCUMENT Central Contra Costa Sanitary District 8 t Central Contra Costa Sanitary District Investment Guidelines May 2008 Central Contra Costa Sanitary District Investment Guidelines Document In response to the Government Accounting Standards Board (GASB) Statement Number 45 disclosure requirements for Other Post - Employment Benefit (OPEB) Plans, the Central Contra Costa Sanitary District has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees Executive Summa Client Name: Central Contra Costa Sanitary District Investment Authority: Full Investment Authority Account Number(s): To be determined Current Assets: $11.2 million (est. November 2009) Risk Tolerance: Moderate Objective Time Horizon: Long -Term Investment Objective: The primary objective is to maximize total Plan return, subject to the risk and quality constraints set forth below. The Plan's targeted rate of return is 7.0 %. The Investment objective the District has selected is the Moderate Objective. The asset allocation ranges for this objective are listed below: Strategic Ranges: 0 - 20% Cash 40 - 60% Fixed Income 40 - 60% Equity Communication Schedule: Committee meetings monthly and potentially quarterly in the future. Monthly statements provided. HCM Portfolio Manager: HCM Back up - Portfolio Manager: UBOC Administrative Officer: Andrew Brown, CFA 415 - 705 -7605 Andrew. Brown A_U boc. com Delbert Chang CFA 415 - 705 -7603 Delbert. Chang(QUboc.com John Fulton, 415 - 273 -2508 John. Fulton &-Uboc.com The managing director for HighMark Capital Management is Kevin Rogers, he can be reached at 949 -553 -2580 Central Contra Costa Sanitary District Investment Guidelines May 2008 2 Portfolio Constraints Income Needs /Cash Flow Required: Annual cost estimated to be at $2.2 million. Unique Needs and Circumstances: None Client(s) Signature: HCM Portfolio Manager: UBOC Administrative Officer: Date: Date: Date: Central Contra Costa Sanitary District Investment Guidelines May 2008 Detailed Information for Investment Guidelines Document Overview The purpose of this Investment Guidelines document (IGD) is to assist you and your Portfolio Manager in effectively supervising, monitoring and evaluating the investment of your portfolio. Your investment program is defined in the various sections of the IGD by: 1. Stating in a written document your attitudes, expectations, objectives and guidelines for the investment of all assets. 2. Setting forth an investment structure for managing your portfolio. This structure includes various asset classes, investment management styles, asset allocation and acceptable ranges that, in total, are expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon. 3. Encouraging effective communications between you and your Portfolio Manager. 4. Complying with all applicable fiduciary, prudence and due diligence requirements experienced investment professionals would utilize, and with all applicable laws, rules and regulations from various local, state, and federal entities that may impact your assets Diversification Your Portfolio Manager is responsible for maintaining the balance between fixed income and equity securities based on the asset allocation. The following parameters shall be adhered to in managing the portfolio: Fixed Income • The long -term fixed income investments (greater than seven -years in maturity) shall constitute no more than 25 %, and as little as 0% of the total Plan assets. • The intermediate -term fixed income investments (between three -seven years in maturity) shall constitute no more than 60 %, nor less than 25% of the total Plan assets. • The high -yield portion of the Plan shall constitute no more than 10 %, and as little as 0% of the total Plan assets. • The convertible bond exposure shall constitute no more than 10 %, and as little as 0% of the total Plan assets. • The short -term fixed income investments (between one -three years in maturity) shall constitute no more than 25 %, and as little as 0% of the total Plan assets. Equity • The domestic large cap equity investments of the Plan shall constitute no more than 45% nor less than 15% of the total Plan assets. • The domestic mid - capitalization equity investments of the Plan shall constitute no more than 10 %, and as little as 0% of the total Plan assets. • The domestic small capitalization equity investments of the Plan shall constitute no more than 15% nor less than 0% of the total Plan assets. Central Contra Costa Sanitary District Investment Guidelines May 2008 4 • The international equity investments of the Plan shall constitute no more than 15% and as little as 0% of the total Plan assets. • The real estate investments of the Plan shall constitute no more than 10% and as little as 0% of the total Plan assets. Permitted Asset Classes and Security Types The following asset classes and security types have been approved by HighMark for use in client portfolios: Asset Classes • Fixed Income • Domestic Bonds • Non -U.S. Bonds • Equities • Domestic • Non -U.S. • Emerging Markets • Real Estate Investment Trust (REITs) • Cash and Cash Equivalents Security Types • Equity Securities • Domestic listed and unlisted securities • Equity and equity - related securities of non -US corporations, in the form of American Depository Receipts ( "ADRs ") • Equity Mutual Funds • Large Cap Growth and Value • Mid Cap Core • Small Cap Growth and Value • International and Emerging Markets • REITs • Exchange Traded Funds (ETFs) • Fixed Income Securities • Government/Agencies • Mortgage Backed Bonds • Corporate Bonds and Notes • Fixed Income Mutual Funds • Corporate • Government • High Yield • International and Emerging Market • Convertible • Preferred • Closed end funds • Cash and Cash Equivalents • Money Market Mutual Fund • Commercial Paper • CDs and Bankers Acceptance Prohibited assets • Precious metals Central Contra Costa Sanitary District Investment Guidelines May 2008 5 • Venture Capital • Short sales • Purchases of Letter Stock, Private Placements, or direct payments • Leveraged Transactions • Commodities Transactions Puts, calls, straddles, or other option strategies, • Purchases of real estate, with the exception of REITs • Derivatives, with exception of ETFs Rebalancina Procedures From time to time, market conditions may cause your asset allocation to vary from the established target. To remain consistent with the asset allocation guidelines established by this Investment Guidelines document, your Portfolio Manager will rebalance the portfolio on a quarterly basis. Duties of Responsibilities of Portfolio Manager Your portfolio manager is expected to manage your portfolio in a manner consistent with this Investment Guidelines document and in accordance with State and Federal law and the Uniform Prudent Investor Act. HighMark Capital Management is a registered investment advisor and shall act as such until you decide otherwise. Your portfolio manager shall be responsible for. 1. Designing, recommending and implementing an appropriate asset allocation consistent with the investment objectives, time horizon, risk profile, guidelines and constraints outlined in this statement. 2. Advising the committee about the selection of and the allocation of asset categories. 3. Identifying specific assets and investment managers within each asset category. 4. Monitoring the performance of all selected assets. 5. Recommending changes to any of the above. 6. Periodically reviewing the suitability of the investments, being available to meet with the committee at least once each year, and being available at such other times within reason at your request. 7. Preparing and presenting appropriate reports. 8. Informing the committee if changes occur in personnel that are responsible for portfolio management or research. You shall be responsible for. 1. The oversight of the investment portfolio. 2. Providing your portfolio manager with all relevant information on the Plan, and shall notify him or her promptly of any changes to this information. 3. Advising your portfolio manager of any change in the Plan's circumstances, such as a change in the actuarial assumptions, which could possibly necessitate a change to your overall risk tolerance, time horizon or liquidity requirements; and thus would dictate a change to your overall investment objective and goals for the portfolio. 4. Monitoring performance by means of regular reviews to assure that objectives are being met and that the policy and guidelines are being followed. Central Contra Costa Sanitary District Investment Guidelines May 2008 6 Communication As a matter of course, your portfolio manager shall keep you apprised of any material changes in HighMark Capital's outlook, recommended investment policy and tactics. In addition, your portfolio manager shall meet with you on a monthly basis in the beginning, changing to a quarterly basis thereafter, to review and explain the portfolio's investment results and any related issues. Your portfolio manager shall also be available on a reasonable basis for telephone communication when needed. Any material event that affects the ownership of HighMark Capital Management or the management of the portfolio must be reported immediately to you. Disclosures Union Bank of California, N.A. and HighMark Capital Management, Inc. are wholly owned subsidiaries of UnionBanCal Corporation. Investments are not deposits or bank obligations, are not guaranteed by any government agency, and involve risk, including loss of principal. Central Contra Costa Sanitary District Investment Guidelines May 2008 7 RESOLUTION NO. A RESOLUTION ADOPTING THE PUBLIC AGENCIES POST - RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT AND HEALTH CARE PLAN DOCUMENTS WHEREAS, it is determined to be in the best interest of the Central Contra Costa Sanitary District (the "District ") to participate in the Public Agencies Post - Retirement Health Care Plan Trust (the "Program ") to fund post - employment benefits for its employees as specified in the District's policies and /or applicable collective bargaining agreements; and WHEREAS, the District is eligible to participate in the Program, a tax - exempt trust and plan performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued thereunder, and is a tax - exempt trust under the provisions of the relevant statutory provisions of the State of California. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Governing Board of Directors of the District hereby adopts the Public Agencies Post - Retirement Health Care Plan Trust Agreement, including the Public Agencies Post - Retirement Health Care Plan, as part of the District Retirement Program, effective November 6, 2008; and 2. The Board of Directors of the District hereby appoints the Controller, or his /her successor or his /her designee as the District's Plan Administrator for the Program; and 3. The District's Plan Administrator is hereby authorized to execute the PARS legal documents on behalf of the District and to take whatever additional actions are necessary to maintain the District's participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him /her to take whatever additional actions are required to administer the District's PARS plan(s). PASSED AND ADOPTED this 6th day of November, 2008, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Gerald R. Lucey President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District . (i Z >- O U to J J O �— 0. Z C: �Co E Q U : co .v v W W _ ♦.., O > > .. D z Z Z — O r cu O J LO .�, M m a) 0 U. J U) E -I--& U. Z to �•— � � c F- p W OC 4 W Q w a �- N O > 7000) _° OC 00 O Q o- Q Q O F- w = a 0_ O 0. M p Q a Q 69 Member Agency (Central Contra Costa Sanitary District) The Post - Retirement Healthcare Trust Investment Manager (HighMark Capital Management) Trustee (Union Bank of California) !-iCS6 W J U Z w W IL a CL z O F- Fn O CL 0) a) -+-•+ co U) E c O U O - n O � c O O E O cn > o — cn •� O 4= C: E 0 CU O C� m 3. CONSTRUCT YOUR PORTFOLIO: SAMPLE PORTFOLIO Emerging Markets Fixed Income Long -Term Interm -Term Short -Term High Yield Cash Moderate Objective 12.0% 11.5% 13.2% 3.0% 3.5% 0.0% 12.2% 0.9% 0.0% 31.6% 9.2% 0.0% 2.8% Emerging Small Cap Markets Growth 4% Internatio 12% Large Cap Growth 13% Small CE Value 3% Laiyc V-00P Value 12% Large Cap Core 12% I -Term Short-Term 9% Yield ,_,aaa 1 0% 3% *Each strategy represented in the Sample Portfolio is a hypothetical construct only and does not reflect actual investment decisions or recommendations. Past performance is no indication of future results. Please refer to page 44 for important disclosures. 29 .� H IGHMARK® CAPITAL MANAGEMENT Equity 40 -60% Fixed Income 40 -60% Equity Large Cap Core Cash 0 -20% Large Cap Value Large Cap Growth Small Cap Value Equity 56.4% Small Cap Growth Fixed Income 40.8% REIT Cash 2.8% International Emerging Markets Fixed Income Long -Term Interm -Term Short -Term High Yield Cash Moderate Objective 12.0% 11.5% 13.2% 3.0% 3.5% 0.0% 12.2% 0.9% 0.0% 31.6% 9.2% 0.0% 2.8% Emerging Small Cap Markets Growth 4% Internatio 12% Large Cap Growth 13% Small CE Value 3% Laiyc V-00P Value 12% Large Cap Core 12% I -Term Short-Term 9% Yield ,_,aaa 1 0% 3% *Each strategy represented in the Sample Portfolio is a hypothetical construct only and does not reflect actual investment decisions or recommendations. Past performance is no indication of future results. Please refer to page 44 for important disclosures. 29 .� H IGHMARK® CAPITAL MANAGEMENT J p > a� IL O > O LL cn z C/) C: W O O z I- O U C/) C: W O O E— Z L c°n Q O O V O C: CTJ O I- 0 O m O Q 7 O O > >N < m C/) C� 0 CN Q O O C) _0 c co O U O O E � Q O O O O - U Q ry