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HomeMy WebLinkAbout12/04/2008 AGENDA BACKUPCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 4, 2008 Type of Action: HUMAN RESOURCES No.: 5.d. Consent Calendar subject: ADOPT SALARY RANGE OF M -36, $7694- $9352, FOR CLASSIFICATION OF SECRETARY OF THE DISTRICT Submitted By: C. Freitas, H. R. Manager Initiating Dept /Div.: Administration /Human Resources Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Freitas R. Musgra es J/6109' James M. VIT General Manager ISSUE: Board authorization is required to modify salary ranges for District classifications. RECOMMENDATION: Adopt salary range of M -36, $7694- $9352, for the Secretary of the District classification. FINANCIAL IMPACTS: $3170 for the remainder of this Fiscal Year. ALTERNATIVES /CONSIDERATIONS: Consider alternate salary ranges. BACKGROUND: Ms. Elaine Boehme was appointed as the Secretary of the District at M -38, $7321 - $8899, in April 2005. The salary range at the time was reduced by five percent from the previous Secretary of the District. The Board recently reviewed Ms. Boehme's performance and based on her outstanding service to the Board, District and public, the Board has directed staff to increase the salary range for the Secretary of the District by five percent to M -36, $7694- $9352, effective December 5, 2008. This matter has been reviewed by the Human Resources Committee at its November 25, 2008 meeting. RECOMMENDED BOARD ACTION: Adopt salary range of M -36, $7694- $9352, for the Secretary of the District classification. Document3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 4, 2008 No.: 5.e. Consent Calendar Type of Action: ACCEPT CONTRACT WORK/AUTHORIZE FILING OF THE NOTICE OF COMPLETION subject: ACCEPT THE CONTRACT WORK FOR THE AERATION AIR RENOVATIONS, DISTRICT PROJECT 7207, AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION Submitted By: Initiating Dept ✓Div.: Nathan Hodges, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: U N. Hodges B. Than ' ,CT. ilecki A. Farrell --games M. Kelly, General Manager ISSUE: Construction has been completed on the Aeration Air Renovations, District Project 7207, and the work is now ready for acceptance. RECOMMENDATION: Accept the contract work for the Aeration Air Renovations, District Project 7207, 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: The aeration basins have experienced air leaks from the floor of the air plenum boxes for many years. Since 2002, investigations have been made to identify the source of leaks and to make repairs. The current project, Aeration Air Renovations, addresses the cracking in the bottom of the air plenum boxes that is allowing compressed air to leak out into the base rock below the structure and eventually migrate back to the atmosphere through various openings around the perimeter of the A/N Tanks. Based on contractor's demonstration projects completed in the summer of 2007, repair of the air plenum boxes was done using a pressure grouting method. The pressure grouting sealed the cracking within the structure's foundation slab and filled voids in the underlying base rock to increase stability of the structure. Attachment 1 shows the location of this project work. The District's aeration air system is composed of Tank 1 and Tank 2. Each tank has 160 plenums through which aeration air enters the process. The scope of work for the project was grout injection in Tank 1. The project scope expanded beyond the initial expectation leading to significant cost increases. One significant item was the amount of grout injected. The project was designed using unit quantities of grout material that were estimated from contractor's demonstration projects conducted in 2007. N: \PESUP \Position Papers \Hodges \7207_Accept NOC.doc Page 1 of 3 POSITION PAPER Board Meeting Date: December 4, 2008 subject. ACCEPT THE CONTRACT WORK FOR THE AERATION AIR RENOVATIONS, DISTRICT PROJECT 7207, AND AUTHORIZE FILING OF THE NOTICE OF COMPLETION Grout injection quantities exceeded original estimates by nearly two times. On August 7, 2008, the Board approved the purchase of additional polyurethane grout material to complete grout injection. The cost for the additional grout was $394,000. Staff also received Board approval for a number of other change orders to renovate Tank 1. This allowed additional work activities in Tank 1, including: fitting all new gaskets to diffusers, replacing 36 existing groundwater relief valves, and installing approximately 600 new retainer rings. Drain lines were also inspected and cleaned. The repair work on Tank 1 was completed in October 2008. The bid documents informed bidders that the District could either re -bid, or award to the successful bidder of the Tank 1 work, an additive bid schedule for the repair work to Tank 2. District staff announced their intent to re -bid the repair work for Tank 2. The repair work for Tank 2 will go out for public bidding January 2009. On May 15, 2008, the Board of Directors authorized the award of a contract for the construction of the project to NCCI, Inc. The Notice to Proceed was issued on June 2, 2008. The work was substantially completed on October 14, 2008. 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 $2,513,500. 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. All contract work is complete and it is appropriate to accept the contract work at this time. RECOMMENDED BOARD ACTION: Accept the contract work for the Aeration Air Renovations, District Project 7207, and authorize filing of the Notice of Completion. N:\PESUP \Position Papers \Hodges \7207_Accept NOC.doc Page 2 of 3 0 0 0 N C � O Z u � 0 150 900 FEET O / Central Contra Costa Attachment Sanitary District AERATION AIR RENOVATIONS PROJECT District Project 7207 1 Project Location Page 3 of 3 Central Contra Costa Sanitary District /J a i ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 4, 2008 No.: 5.f. Consent Calendar Type of Action: ACCEPT REPORT; ADOPT RESOLUTION subject: ACCEPT THE 2008 WASTEWATER UTILITY SERVICE CAPACITY/ DEMAND REPORT AND ADOPT A RESOLUTION UPDATING THE POLICY REGARDING THE PROVISION OF WASTEWATER COLLECTION, TREATMENT AND DISPOSAL SERVICES TO RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS Submitted By: Initiating Dept/Div.: Russell B. Leavitt Engineering /Environmental Services Division Engineering Assistant III REVIEWED AND RECOMMENDED FOR BOARD ACTION: 4t—'— ag�r � ke/r R. Leavitt Swanson A. Farrell K. Alm lViames M. K y General Manager ISSUE: State law requires Central Contra Costa Sanitary District ( CCCSD) to give wastewater utility service priority to residential developments with affordable housing units and re -adopt a written policy on the subject at least once every five years thereafter. Staff has prepared a report detailing CCCSD's ability to comply with this law and an updated policy for Board consideration. RECOMMENDATION: Accept the attached report on CCCSD's wastewater utility service capacity and anticipated demand, and adopt a resolution updating the policy regarding the provision of wastewater collection, treatment and disposal services to residential developments with affordable housing units. FINANCIAL IMPACTS: No impact. ALTERNATIVES /CONSIDERATIONS: If the report is not accepted, direction should be given to staff as to which aspects of the report require revision before being returned to the Board. Likewise, since CCCSD must comply with State law, if the resolution is not adopted, direction should be given to staff as to which aspects of the proposed policy require further consideration before being returned to the Board. BACKGROUND: To comply with Government Code Section 65589.7 (SB 1087, 2005), on May 18, 2006, the CCCSD Board of Directors approved Resolution 2006 -027, which established a written policy regarding the provision of wastewater collection, treatment and disposal services to residential developments with housing units affordable to lower income households. This written policy needs to be re- adopted at least once every five years thereafter, and must contain specific objective standards for the provision of wastewater utility service. To implement the policy, the 2006 resolution required N: \ENVRSEC \Position Pape rs \Leavitt\2008 \PP SB 1087 2008 Report & Policy - 12- 4- 08.doc Page 1 of 2 POSITION PAPER Board Meeting Date: December 4, 2008 subject: ACCEPT THE 2008 WASTEWATER UTILITY SERVICE CAPACITY/ DEMAND REPORT AND ADOPT A RESOLUTION UPDATING THE POLICY REGARDING THE PROVISION OF WASTEWATER COLLECTION, TREATMENT, AND DISPOSAL SERVICES TO RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS preparation of a wastewater utility service capacity /demand report for Board acceptance within six months. In November 2006, a report was prepared to comply with the requirements of CCCSD Resolution 2006 -027. The 2006 report concluded that CCCSD was capable of providing sufficient collection, treatment and disposal capacity for anticipated demand to nearly the year 2035. The report, which was accepted by the Board, also identified that the next such report would be prepared and presented to the Board in 2008, following completion of the next Association of Bay Area Governments (ABAG) Regional Housing Needs Assessment process, and then every five years after that. The attached 2008 report (Attachment 1), which has been prepared to comply with the requirements of that 2006 resolution, not only continues to conclude that CCCSD is capable of providing sufficient collection, treatment and disposal capacity for anticipated demand to nearly the year 2035, but also clearly demonstrates that the wastewater collection, treatment and disposal needs of all housing specifically planned through the year 2014 can be accommodated. RECOMMENDED BOARD ACTION: Accept the attached report on CCCSD's wastewater utility service capacity and anticipated demand, and adopt a resolution updating the policy regarding the provision of wastewater collection, treatment and disposal services to residential developments with affordable housing units. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP SB 1087 2008 Report & Policy - 12- 4- 08.doc Page 2 of 2 Attachment 1 CENTRAL CONTRA COSTA SANITARY DISTRICT WASTEWATER UTILITY SERVICE CAPACITY /DEMAND REPORT NOVEMBER 2008 BACKGROUND On May 18, 2006, the Central Contra Costa Sanitary District ( CCCSD) Board of Directors approved Resolution 2006 -027, which established a written policy regarding the provision of wastewater collection, treatment, and disposal services to residential developments with affordable housing units. This policy was established to comply with Government Code Section 65589.7 (SB 1087, 2005), which requires public agencies to adopt a written policy giving public sewer services priority to proposed housing developments that help meet the regional need for lower income housing. The law also generally bars denial or the limitation of services solely because a proposed development includes affordable housing. This written policy needed to be adopted on or before July 1, 2006, re- adopted at least once every five years thereafter, and must contain specific objective standards for the provision of wastewater utility service. To implement the policy, the Board resolution required preparation of a wastewater utility service capacity /demand report for Board acceptance within six months. The purpose of the report is to identify CCCSD's available wastewater collection, treatment and disposal capacity; anticipated demand for sewer services from lower income households; the necessary steps needed to address capacity shortfalls; and any necessary changes to the policy adopted by this resolution. In November 2006, a report was prepared to comply with the requirements of CCCSD Resolution 2006 -027. The report concluded that CCCSD was capable of providing sufficient collection, treatment and disposal capacity for anticipated demand to nearly the year 2035. The report, which was accepted by the Board, also identified that the next such report would be prepare and presented to the Board in 2008, following completion of the next Association of Bay Area Governments (ABAG) Regional Housing Needs Assessment process, and then every five years after that. This report has been prepared to comply with that schedule. WASTEWATER CAPACITY There are three components to wastewater utility service: collection, treatment and disposal. Each component has its own capacity considerations. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP -SB 1087 Capacity- Demand Rpt (Attach 1) - 12- 4- 08.doc Page 1 of 5 Collection CCCSD serves about a 142 square mile area generally located about 30 miles east of San Francisco. CCCSD's service area includes approximately 317,000 residents of the communities of Alamo, Danville, Lafayette, Martinez, Moraga, Orinda, Pacheco, Pleasant Hill, San Ramon and Walnut Creek. CCCSD also treats wastewater for an additional 135,000 residents of the Concord /Clayton area under a 1974 contract with the City of Concord. About 82 percent of CCCSD's customers are residential. The remaining 18 percent are primarily commercial, office, and institutional customers, with less than one percent industrial. To collect wastewater from its customers, CCCSD owns and maintains about 1,500 miles of sewer pipeline, ranging in size from 6 inches to 120 inches in diameter; and 18 sewage pumping stations. The available, dry weather capacity in the collection system varies by location. Factors affecting available capacity include pipe size, slope, wastewater flows from existing land uses, groundwater infiltration, structural condition, and the extent to which non - structural elements, such as roots and grease buildup constrain the flow- carrying ability of the pipelines. To track available capacity, CCCSD uses a capacity - modeling program —Sewer Network Analysis Program (ArcSNAP) —to assess the impacts of proposals for localized redevelopment and densification in areas of known /anticipated long -term capacity deficiencies or current, high- maintenance facilities. Other reasons for conducting a capacity analysis are when there is a structural failure in a pipe, an overflow in the system, or when CCCSD's Collection System Operations Department maintenance requests indicate a persistent and continuous problem. Periodically, CCCSD also prepares comprehensive capacity analyses of the trunk sewer and interceptor systems and the pumping stations as part of a Collection System Master Plan or Pumping Station Master Plan. To preserve design capacity, CCCSD has an extensive sewer system maintenance program, with each line scheduled for cleaning at a frequency of between one month and ten years. Also, CCCSD annually budgets for replacement of a portion of the collection system that is substantially deteriorated or high maintenance. Treatment and Disposal In 2002, CCCSD received approval from the Regional Water Quality Control Board, San Francisco Bay, to increase its permitted average dry weather flow (ADWF) effluent discharge limit from 45 million gallons per day (MGD) to 53.8 MGD, based on a secondary level of treatment. ADWF is the average daily discharge during the three consecutive months of the calendar year with the lowest discharge quantities, usually the mid- to late summer months. There are two components to ADWF: base wastewater flow (BWF) and groundwater infiltration (GWI). N: \ENVRSEC \Position Papers \Leavitt\2008 \PP -SB 1087 Capacity- Demand Rpt (Attach 1) - 12- 4- 08.doc Page 2 of 5 CCCSD's environmental impact report (EIR) on that requested discharge limit increase noted that an evaluation of the wastewater treatment plant determined that the reliable physical capacity of the wastewater treatment plant is 55 MGD because that is the wastewater volume that would produce the maximum quantity of biosolids CCCSD would be allowed to incinerate under CCCSD's current air quality permit with the Bay Area Air Quality Management District (BAAQMD). The 53.8 MGD discharge limit request was based on buildout of then - planned growth, which was expected to result in an increase in served population of approximately 111,000 by the year 2035, resulting in a total served population of 527,000. In the permit renewal application, CCCSD assumed a 102 gallons per capita per day (GCD) wastewater generation rate and the projected buildout population of 527,000 would produce a High GWI ADWF of 53.8 MGD. The BWF was expected to be about 40.6 MGD of the 53.8 MGD total ADWF, assuming 77 GCD (a factor derived by CCCSD staff from historic flow data). The remaining 13.2 MGD ADWF (25 GCD) represents the worst- case High GWI volume. Low GWI conditions (2.8 GCD) would have added only 1.5 MGD to the BWF and Average GWI conditions (14.1 GCD) would have added 7.4 MGD to the BWF. The actual ADWF for the year 2007 was 36.1 MGD, which represents 67.1 percent of the allowable discharge flow. Given a 2007 served population estimate of 448,700, the BWF would have been 34.5 MGD and the remaining 1.6 MGD would have been GWI. Based on the EIR's projected ADWF ranges, 2005's flow represents a Low GWI condition. ANTICIPATED DEMAND "Proposed developments that include housing units affordable to lower income households" means that dwelling units shall be sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. Table 1 presents the anticipated demand for wastewater utility services from future households planned by land use planning jurisdictions within CCCSD's service area for the current 2007 -2014 housing planning cycle (which actually was released by ABAG June 30, 2008). These numbers indicate that 5,667 housing units for very low and low - income household are anticipated during this planning cycle, and 12,751 housing units overall. The new law, however, could be interpreted to mean that CCCSD must give priority to an entire proposed development that includes affordable housing units; not just to the affordable housing units. Hypothetically, if a 100 -unit residential development were to include even a few affordable housing units, CCCSD may need to give priority to the entire development. Since it cannot be known how many "non- affordable units" might be linked to an affordable housing project, the overall goal of 12,753 housing units also should be considered. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP -SB 1087 Capacity- Demand Rpt (Attach 1) - 12- 4- 08.doc Page 3 of 5 The BWF and GWI that would be produced by these sets of housing units are presented in Table 2. To convert projected housing units to future wastewater flow, it is assumed that the 5,667 very low and low housing units will be multi - family and the remaining 7,086 are single family. CCCSD's wastewater generation factors are 150 gallons per day for multi - family units and 225 gallons per day for single - family units. The GWI was calculated by determining the ratio of BWI to the High GWI scenario factors used in the 2002 Effluent Discharge Limit Increase EIR. The High GWI generation factor of 25 GCD was 32.5 percent of the 77 GCD BWI factor. The affordable units would have an added burden of 0.41 MGD, the other units would add 2.11 MGD, and the total would be 2.52 MGD. If this total amount were added to the year 2007 ADWF of 36.1 MGD, this year 2014 effluent discharge would be 38.62 MGD, which would still be substantially below CCCSD's 53.8 MGD limit. TABLE 1. ABAG HOUSING NEEDS ALLOCATION WITHIN CCCSD SERVICE AREA, 2007 -2014 TABLE 2. PROJECTED INCREASE IN ADWF DUE TO HOUSING PLANNED FOR THE 2007 -2014 CYCLE VERY LOW LOW MODERATE ABOVE MODERATE TOTAL Clayton 49 35 33 34 151 Concord 639 426 498 1,480 3,043 Danville 196 130 146 111 583 Lafayette 113 77 80 91 361 Martinez a 261 166 179 454 1,060 Mora a 73 47 52 62 234 Orinda 70 48 55 45 218 Pleasant Hill 160 105 106 257 628 San Ramona 1,174 715 740 834 3,463 Walnut Creek 456 302 374 826 1,958 Unincorporated b 815 245 598 180 687 [2061 1,408 [4231 3,508 1,054 Totals 5,667 7,086 12,753 (a) Wastewater service for these cities is shared by CCCSD and other agencies. This analysis assumes, worst -case, that all units are built in the portion of these cities served by CCCSD. (b) Wastewater service in the unincorporated areas is shared by CCCSD and other agencies. This analysis assumes that CCCSD will serve only the portion of these units shown in [brackets]; this portion was determined based on CCCSD's estimated 30 percent share of the overall unincorporated population. TABLE 2. PROJECTED INCREASE IN ADWF DUE TO HOUSING PLANNED FOR THE 2007 -2014 CYCLE N: \ENVRSEC \Position Papers \Leavitt\2008 \PP -SB 1087 Capacity- Demand Rpt (Attach 1) - 12- 4- 08.doc Page 4 of 5 VERY LOW AND ALL OTHER UNITS TOTAL LOW UNITS (MGD) (MGD) (MGD) BASE WASTEWATER FLOW (BWI) 0.31 1.59 1.90 WORST -CASE HIGH GROUNDWATER INFILTRATION (GWI) (32.5% x BWI) 0.10 0.52 0.62 TOTALS 0.41 2.11 2.52 N: \ENVRSEC \Position Papers \Leavitt\2008 \PP -SB 1087 Capacity- Demand Rpt (Attach 1) - 12- 4- 08.doc Page 4 of 5 STEPS NEEDED TO ADDRESS CAPACITY SHORTFALLS Collection When collection system capacity shortfalls are identified, CCCSD can require improvements to be made directly by developers of nearby projects. If the capacity deficiencies are too far downstream from an active project site to be considered a direct impact of a development project, CCCSD includes funding of needed improvements in its Capital Improvement Plan, as they become priorities. The latter Improvements to existing facilities required as a result of new development are funded from applicable CCCSD fees and charges on new development. These fees and charges mitigate the cumulative wastewater service impacts the development project may have. Treatment and Disposal CCCSD's 53.8 MGD discharge limit should be adequate for the next several decades. Under worst -case groundwater conditions, however, the discharge limit could be reached a few years sooner than 2035, due to the increase in planned growth since the limit was approved in 2002. The worst -case groundwater conditions are not likely to be consistently sustained for a continuous number of years, but CCCSD is required to stay below its effluent discharge limit. Meanwhile, CCCSD is studying potential improvements to its biosolids handling processes with the goal of providing more operational capacity and flexibility. CCCSD includes funding of any needed, growth- related treatment improvements in its Capital Improvement Plan, as they become priorities. These improvements are funded from applicable CCCSD fees and charges on new development. These fees and charges mitigate the cumulative wastewater service impacts the development project may have. NECESSARY CHANGES TO THE POLICY No changes are necessary to the policy at this time. To comply with the law's five -year review requirement, the next Wastewater Utility Service Capacity /Demand Report will be prepared and presented to the CCCSD Board of Directors by the end of 2013. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP -SB 1087 Capacity- Demand Rpt (Attach 1) - 12- 4- 08.doc Page 5 of 5 RESOLUTION NO. 2008 - A RESOLUTION ADOPTING A POLICY REGARDING THE PROVISION OF WASTEWATER COLLECTION, TREATMENT AND DISPOSAL SERVICES TO RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS WHEREAS, Central Contra Costa Sanitary District ( CCCSD) is committed to the fair and equitable provision of wastewater collection, treatment and disposal services to persons and entities within its jurisdiction, in conformity with State law and the District Code; and WHEREAS, Government Code Section 65589.7 requires CCCSD to adopt, at least once every five years, a written policy (i) granting or providing priority for the provision of public sewer services to proposed housing developments that help meet the regional need for lower income housing, and (ii) barring the denial or the conditioning of approval of an application for services or reducing the amount of the services applied for, solely because a proposed development includes affordable housing components, except in limited circumstances; and WHEREAS, On May 18, 2006, the CCCSD Board of Directors approved Resolution 2006 -027, which established the initial written policy regarding the provision of wastewater collection, treatment, and disposal services to residential developments with affordable housing units and required preparation of a wastewater utility service capacity /demand report for Board acceptance within six months; and WHEREAS, on November 16, 2006 the CCCSD Board of Directors accepted the wastewater utility service capacity /demand report, which identified CCCSD's available wastewater collection, treatment and disposal capacity; anticipated demand for sewer services from lower income households; the necessary steps needed to address capacity shortfalls; and any necessary changes to the policy adopted by the 2006 resolution; and WHEREAS, the 2006 report concluded that CCCSD was capable of providing sufficient collection, treatment and disposal capacity for anticipated demand to nearly the year 2035 and identified that the next such report would be prepared and presented to the Board in 2008, following completion of the next Association of Bay Area Governments (ABAG) Regional Housing Needs Assessment process. BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: 1. That the "Central Contra Costa Sanitary District Policy Regarding the Provision of Service to Residential Developments with Affordable Housing Units," a copy of which is attached hereto (Exhibit A), is hereby approved and adopted, thus replacing the Resolution 2006 -027 policy. N: \ENVRSEC \Position Pape rs\Leavitt\2008\P P SB 1087 2008 Report & Policy - 12- 4- 08.doc Resolution 2008 — Page 2 of 2 2. That CCCSD's Policy shall govern the manner in which wastewater collection, treatment and disposal services are provided to proposed residential housing developments within CCCSD's jurisdiction that address the needs of lower income households. 3. That at least once every five years hereafter, CCCSD shall prepare a report for acceptance by the Board of Directors identifying such factors as the available collection, treatment and disposal capacity, anticipated demand for sewer services from lower income households, the necessary steps needed to address capacity shortfalls, and any necessary changes to the policy adopted by this resolution. 4. That each portion of this resolution is severable. Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect. PASSED AND ADOPTED this 4th day of December 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 N: \ENVRSEC \Position Papers \Leavitt\2008 \PP SB 1087 2008 Report & Policy - 12- 4- 08.doc Resolution 2008- Exhibit A CENTRAL CONTRA COSTA SANITARY DISTRICT POLICY REGARDING THE PROVISION OF SERVICE TO RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS Policy Background. Pursuant to Government Code Section 65589.7, the Central Contra Costa Sanitary District ( CCCSD) is required to adopt a written policy (i) granting or providing priority for the provision of public sewer services to proposed housing developments that help meet the regional need for lower income housing, and (ii) barring the denial or the conditioning of approval of an application for services, or reducing the amount of the services applied for, merely because a proposed development includes affordable housing components, except in limited circumstances. The Policy set forth herein conforms to this mandate. 2. General Service Policy. To the extent practical, CCCSD shall provide or allow to be provided wastewater collection, treatment and disposal facilities that: a) Have sufficient capacity to accommodate the demand from land uses approved in the General Plans of the land use planning jurisdictions within CCCSD's service area, and b) Are located so as to serve all existing or approved development within CCCSD's service area and all customers contracting with CCCSD for service, provided gravity service is feasible. Collection service by gravity sewers is preferred to community pumping systems for financial and environmental quality reasons. Board approval is required to establish a community pumping system. Such approval shall not be based on the presence or absence of housing affordable to low income households. The Board may condition its approval by requiring a community pumping system to be temporary and mandating connection to a gravity sewer when it later becomes available. 3. Provision of Service During Times of Excess Capacity. In times of excess wastewater collection, treatment and disposal capacity, CCCSD shall review and provide or permit the provision of public sewer service to residential housing N: \ENVRSEC \Position Papers \Leavitt\2008 \PP SB 1087 2008 Report & Policy - 12- 4- 08.doc Resolution 2008 — Exhibit A - Policy Page 2 of 3 developments on an income - neutral basis. Upon an applicant's payment of applicable fees or the execution of a contract to that effect with CCCSD, CCCSD shall permit public sewer service to eligible customers in the order of an application's submission, subject to the general restrictions set forth herein and the income - neutral requirements of the District Code. 4. Provision of Service During Times of Limited Capacity or Ability to Provide Service: In the event of service limitations due to capacity or regulatory constraints, service priority shall be given to planned developments that include housing units affordable to lower income households in accordance with Government Code Section 65589.7 (SIB 1087, 2005), and the limitations set herein. 5. Service Approval and Application Review. CCCSD shall not deny or condition the approval of an application for services to or reduce the amount of services applied for by a proposed development that includes housing units affordable to lower income households, unless CCCSD makes specific written findings that the denial, condition or reduction is necessary due to the existence of one or more of the following: (a) CCCSD does not have sufficient treatment or collection capacity, as demonstrated by a written engineering analysis and report on the condition of the treatment or collection works, to serve the needs of the proposed development. (b) CCCSD is under an order issued by a regional water quality control board that prohibits new sewer connections. (c) The applicant has failed to agree to reasonable terms and conditions relating to the provision of service generally applicable to development projects seeking service from CCCSD, but not limited to, the requirements of local, state, or federal laws and regulations or payment of a fee or charge imposed pursuant to Government Code Section 66013. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP SB 1087 2008 Report & Policy - 12- 4- 08.doc Resolution 2008 — Exhibit A - Policy Page 3 of 3 6. Required Report. At least once every five years, CCCSD shall prepare a report for acceptance by the Board of Directors identifying: (a) Available collection, treatment, and disposal capacity; (b) The anticipated demand for wastewater utility service by planning housing units affordable to lower income households; (c) Any public or private action steps necessary to accommodate such demand is adequate capacity is unavailable; and (d) Any changes to these policies or procedures necessary for implementing this service requirement. Preparation of this report shall take into account information available in the General Plans of the land use planning jurisdictions within CCCSD and pertinent District plans and documents, such as the Collection System Master Plan, the Treatment Plant Master Plan, CCCSD's NPDES Permit, collection system capacity model, and treatment plant operational statistics and analyses. 7. Re -adopt Policy. Following acceptance of the above report, the Board of Directors shall re -adopt a written policy regarding the provision of wastewater collection, treatment, and disposal services to residential developments with housing units affordable to lower income households. N: \ENVRSEC \Position Papers \Leavitt\2008 \PP SB 1087 2008 Report & Policy - 12- 4- 08.doc Item No. 7.a.1. CCCSD CAPACITY FEE PROGRAM Special Study Review December 4, 2008 Curtis Swanson Capacity Fee Special Study :• For non - residential users where the Board has not established a RUE factor, a special study is conducted by District staff. A special study determines the wastewater strength and volume for a particular business or industry. ❖ Special studies may be reevaluated after 2 to 5 years of operation by the business or industry. 1 Special Study Review 2003 to 2005 No. of users Preliminary Resolution 2 Significantly exceed fee estimate 11 OK — within acceptable range 13 Total special studies reviewed Users Significantly Exceeding the Original Fee Estimate Additional User Fees Owed Kaiser Hospital — Walnut Creek $198,358 (based on 3 -year avg. water use) County Juvenile Hall — Martinez $126,541 2 Kaiser Medical Center Expansion INITIAL REVISED ITEM STUDY STUDY Water use 49,372 gpd 80,640 gpd Added Burden 67.572 RUE 144.694 RUE Capacity Fee $173,795 $372,153 Additional Fee Owed - - - -- $198,358 County Juvenile Hall • Original facility capacity was 160 beds. • In 2003, added a new 240 -bed facility. • Planned to remove an older 120 -bed facility. • Capacity fees were based on a net increase of 120 beds. • Older 120 -bed facility has not been removed. N Next Steps . Kaiser Walnut Creek Continue discussions to verify water usage & planned conservation. Discuss payment options. • County Juvenile Hall Discuss plans for removing 120 beds. Discuss conservation measures & payment options. 0 y. Item 7.a.2 Overview 1 Fa Residential Participants vs. % of Households Past 5 Years 29,000 15.0% `.. 28,000 14.5% 27,000 14.0% � 28,000 13.5% � � fl' 25,000 Z 13.0% 61 q 24,000 7 12.5% R O = CL 23,000 12.0% O C 22,000 11.5% 21,000 11.0% 20,000 10.5% FY03 /04 FY04 /05 FY05 /06 FY06 /07 FY07 /08 # Partci ants 23,061 22,872 23,897 26,392 27,940 %Households 12.3% 12.1% 12.3% 13.6% 14.5% �l Fa Z Operating Expenses Total Operating Costs .A Cost per Car Labor Costs Past 5 Years $75 (Salary, Benefits and Overhead) $71 $70 $66 $65 $64 cc $61 °= $60 $1,000,000 CL t ; $55 0 $50 $45 $674,051 $646,908 $40 FY03 /04 FY04 /05 FY05 /06 "FY06 /07 FY07 /08 $600,000 * Beginning in FY2006/07 the cost of the Amortization of Capital Expenditures (ACE) was included in the Cost per Car calculation. The ACE was added to the figures prior to FY2006/07 for comparison purposes. z Operating Expenses .A Labor Costs (Salary, Benefits and Overhead) $1,000,000 $800,000 $674,051 $646,908 $600,000 , w 0 $400,000 `0 $200,000 J $0 FY04105 FY05 /06 FY06107 FY07108 Staff = 5 Staff = 3.75 Staff = 3 Staff = 4 0 Overhead $247,515 $225,319 $194,810 $283,733 ■ Benefits $150,875 $170,648 $139,406 $202,262 ■ Sala $275,660 $250,940 $192,049 $265171 FY2004/05 was the last year the HHW Facility was fully staffed. FY2008/09 Program Outlook C.. • Residential participation Small Business Program Summary Participation has leveled off a bit during the first 51/2 months of Number of Appointments FY2008/09 420 • Operating costs s Waste costs are expected to remain around the same as FY07 /08 373 Labor costs will increase with the addition of a new HHW 360 Technician r Waste management 300 Waste volumes are expected to keep on average (1.8 to 1.9 million pounds) 252 ` • Temporary collection event s; 226 City of San Ramon 180 • Business appointments have increased slightly in the first half of ,r the year • New things coming up for 2008/09 120 Pharmaceutical collection program • New visitor management software 60 FY03 /04 FY04 /05 FY05 /06 FY06 /07 FY07 /08 f C. FY2008/09 Program Outlook • Residential participation Participation has leveled off a bit during the first 51/2 months of FY2008/09 • Operating costs s Waste costs are expected to remain around the same as FY07 /08 Labor costs will increase with the addition of a new HHW Technician r Waste management Waste volumes are expected to keep on average (1.8 to 1.9 million pounds) ` • Temporary collection event s; We will hold a temporary HHW Event in the Spring of 2009 in the City of San Ramon • Small business program • Business appointments have increased slightly in the first half of ,r the year • New things coming up for 2008/09 Pharmaceutical collection program • New visitor management software Questions? HOUSEHOLD HAZARDOUS WASTE COLLECTION FACILITY Central Contra Costa 11 1W AIML Sanitary District so H? NlsiRlci �_` Mw�ov. CJ •FuWed 19D _ CENTRAL CONTRA COSTA SANITARY DISTRICT / MT. VIEW SANITARY DISTRICT 2007/08 HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM Annual Report The following Central San staff contributed to the preparation of this report: David Wyatt Curt Swanson Program Contacts: David Wyatt Household Hazardous Waste Supervisor (925) 335 -7714 Curt Swanson Environmental Services Division Manager (925) 229 -7336 HHW Program Information: (800) 646 -1431 www.centralsan.org or www.mvsd.org 2007/2008 Household Hazardous Waste Collection Program Annual Report Table of Contents Page No. Appendices: I California Integrated Waste Management Board Form 303 II CCCSD Board Resolution Setting CESQG Disposal Charges Agency Partnership i Section 1 Program Summary 1 -1 Section 2 Program Description 2 -1 Section 3 HHW Collection Facility Residential Participation 3 -1 Section 4 Quantities of HHW Collected 4 -1 Section 5 Pollution Prevention 5 -1 Section 6 HHW Diverted from Landfill Disposal 6 -1 Section 7 Temporary Collection Events 7 -1 Section 8 Small Business Program 8 -1 Section 9 Public Education /Program Promotion 9 -1 Section 10 Revenue and Expenses 10 -1 Appendices: I California Integrated Waste Management Board Form 303 II CCCSD Board Resolution Setting CESQG Disposal Charges 2007/2008 Household Hazardous Waste Collection Program Annual Report Tables and Figures Table Description /Title Page No. 3 Residential Participation by Jurisdiction 3 -4 4 Estimate of HHW Collected by Community 4 -4 5 -1 FY2007/2008 Mercury Collection Summary 5 -2 5 -2 FY2007/08 Miscellaneous Chemical Collection Summary 5 -3 6 Quantity of Landfill Diverted Waste 5 -4 7 Temporary HHW Collection Event Participation Summary 6 -2 8 -1 Small Business Participation by Jurisdiction 7 -4 8 -2 Small Business (CESQG) Program Summary 7 -5 8 -3 Small Business Program Participants 7 -6 10 HHWCF 2007/2008 Summary of Revenue and Expenses 9 -3 Figure Page No. 1 -1 Operating Cost per Car 1 -1 1 -2 Cost per Car Broken Down by Expense 1 -2 1 -3 Pounds of Waste Per Car 1 -3 1 -4 Operating Cost Per Pound of Waste 1 -4 3 -1 HHWCF Participation: Cars per Month 3 -1 3 -2 HHWCF Participation: Average Cars per Day 3 -2 3 -3 HHWCF Participation: Cars per 7 -Hour Day 3 -3 3-4 HHW Annual Participation ( %) 3 -3 4 -1 Waste Disposal per Month 4 -2 4 -2 Breakdown of Waste Shipped by Weight ( %) of Major Categories 4 -3 4 -3 Waste Management Method Breakdown % of Waste Processed by Weight 4 -3 6 -1 Total Cars Served at Temporary Collection Events 6 -3 7 -1 CESQG New Customers vs. Repeat Customers 7 -3 9 -1 Participation and Expenses 9 -2 9 -1 HHW Program Estimated Charges per Household 9 -2 AGENCY PARTNERSHIP Central Contra Costa Sanitary District and Mt. View Sanitary District are co- sponsors of the Household Hazardous Waste (HHW) Collection Facility located in Martinez, California, the first permanent HHW facility in Contra Costa County. The facility's service area encompasses all of central Contra Costa County, with a served population of approximately 487,000 (192,000 households). In 1995, all central Contra Costa County cities', the Central Contra Costa Solid Waste Authority, Central Contra Costa Sanitary District and Mt. View Sanitary District resolved to support the establishment of a permanent HHW Collection Facility. Cost efficiency, economies of scale, and broader service capabilities as compared to temporary HHW collection events were recognized as benefits to the participating communities. This agency cooperation and partnership was the critical ingredient in making the HHW Collection Facility a reality, and providing a sound solution to keep hazardous waste out of sanitary sewers, storm drains, and solid waste landfills. The agency partnership agreements provide for reliable, equitable funding of the HHW Collection Program and ensure that HHW collection services are available to all central Contra Costa County residents and eligible businesses. This annual report for fiscal year 2007/08 presents the facility participation levels, and an analysis of the hazardous waste dropped off at the collection facility. The high level of participation and amount of hazardous waste properly managed at the collection facility demonstrates the benefit of the program to both public health and the environment. Clayton, Concord, Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San Ramon, Walnut Creek Section 1: Program Summary PROGRAM SUMMARY The Central Contra Costa Sanitary District/Mt. View Sanitary District Household Hazardous Waste (HHW) Collection Facility is entering its 11th year of operation. The HHW Collection Program serves all of central Contra Costa County, comprised of 192,280 households, and a population of approximately 487,081. The HHW Program service area has seen steady increases in the number of households over the past 11 years. Program participation has also increased from 7.8 percent of households during the inception year in 1997/98 to an average of 12 percent of households during FY2003/04 to FY2005/06. Participation increased to 13.6 percent of households during fiscal year 2006/07 and grew again in fiscal year 2007/08, topping off at 14.5 percent. This level of sustained participation can be attributed primarily to on -going advertising in the District's Pipeline newsletter and "word of mouth" by residents and businesses. The increase in participation in fiscal year 2007/08 is mainly attributed to an increase of participants bringing universal wastes. The number of residential customers was 27,940 in 2007/08, an increase of 5.6 percent from the previous year (see section 3). Operating Cost The operating cost per car for fiscal year 2007/08 was $66 per car. This was an increase from $61 per car during fiscal year 2006/07 (see Figure 1 -1). Like last year, the Total Expenses figure was used to calculate the cost $100 $90 $80 d $70 V $60 $50 $40 per car. In past *`� Will now include the cost of Amortization of Capital Expenditures, as this is part of the cost of operating the year's, the Total HHW Program. Figure 1 -1 Operating Cost per Car Operating Expenses were divided by the number of residential and conditionally exempt small quantity 1 -1 generators (CESQG) Figure 1 -2 participants to Cost per Car Broken Down by Expense The Cost /Car for Fiscal Year 2007/08 is $66.00. produce a cost per 11 11 RR This now includes the amortization of capital expenditures $11.Ocs participant (or car). .. This calculation did not factor the cost; of the Amortization a of Capital $33.66 Expenditures (see Section 9 $16.50 Summary of Revenue and Expenses). To $3.96 compare previous years cost per car with that of fiscal year 2007/08, the cost per car without the Amortization of Capital Expenditures would be $59 per car, which is also an increase of $5 per car over fiscal year 2006/07. This cost increase can be attributed to the increased waste disposal costs, operating supplies (drums) and contract labor associated with the new waste services contract, which began in November 2007. Another increase in cost can be attributed to the program becoming fully staffed with Figure 1 -3 District employees for the first time Pounds of Waste per Car since 2005. (More 90 so on staffing on page 80 70 2 -4.) 60 Approximately 25 percent of the total operating expenses are comprised of transportation and disposal costs. 50 N 40 9 30 a° 20 10 0 q04 qq 'p 40 ;lNci '0,01ri 00 -,AN 1 -2 This is an increase of about 4 percent or roughly $17,806 compared to last fiscal year. The cost per pound to process all wastes collected was $0.99 per pound (including the weight of reuse). Figure 1 -2 shows the cost per car broken down by expense. Figures 1 -1, 1 -3 and 1-4 show a comparison of the cost per car, pounds per car and cost per pound of HHW processed from all eleven fiscal years of the HHW Collection Program's operations. Universal Wastes On February 8, 2006, a temporary exemption to the Universal Waste laws, which allowed households and small businesses to discard their fluorescent lamps, household batteries and mercury thermostats in the trash, expired. Now all of these items must be taken to an authorized recycling facility such as an HHW collection facility. The amount of fluorescent lamps collected increased considerably in 2007/08. Over 251,000 linear feet of fluorescent lamps were collected in 2007/08. This is an increase of more than 100,000 feet over the previous year. Household battery volumes on the other hand fell sharply from 64,500 pounds in 2006/07 to 44,370 pounds in 2007/08. This could be due to an increase in the number of retail sites that offer battery collection, such as the Central Contra Costa Solid Waste Authority's Battery Collection Program, which has 19 sites in its service area. Temporary Collection Events A temporary HHW collection event was conducted in the City of San Ramon, the community most remote to the permanent HHW facility. The District and the City of San Ramon sponsored the event that served 463 residential customers. The District's Board will evaluate the need for continued temporary HHW collection events on an annual basis. This review is in keeping with our goal to minimize costs and maintain responsible rates. Small Business Program The small business component of the hazardous waste collection program for CESQG's continued to provide services to eligible businesses through fiscal year 2007/08. In FY2006/07 CESQG appointments increased by over 61 percent compared to the average of the three years before. This was presumed to be due to the solid waste restrictions on fluorescent lamps. In FY2007/08 the increase was not as prominent as a total of 386 appointments were served. See Section 7 for complete program details. 1 -3 Waste Collection A total of 1,552,421 pounds of hazardous waste was collected and shipped for recycling or proper disposal. The waste was primarily comprised of flammable liquids, oil -based and latex paint, motor oil, and lead -acid car batteries. These five waste categories amounted to 73 percent of the total wastes collected. The remaining 27 percent was corrosives, aerosols, poisons, and other types of hazardous waste. Adding the 338,942 pounds of reusable products that were given away through the facility's HHW Reuse Program, an estimated 1,891,363 pounds of HHW were processed through the HHW Program during fiscal year 2007/08. The average weight of hazardous waste collected per car was 67 pounds, down from 71 pounds in fiscal year 2006/07 (see figure 1 -3). Nearly two- thirds (57 percent) of all hazardous waste collected at the facility was given away for reuse or shipped from the facility for recycling (see section 5). Figure 1 -4 Operating Cost per Pound of Waste $1.40 $1.20 $1.00 $0.80 a U $0.60 $0.40 tK Sustained success was achieved in all elements of the HHW Collection Program for this, the eleventh year of operation. This program continues to meet the need for residential and small business hazardous waste drop -off services. The HHW collection program also serves as an important component of the District's overall pollution prevention program, providing a measurable amount of hazardous waste that can be documented as properly disposed rather than polluting the San Francisco Bay. Pollution Prevention The HHW program is an integral part of the Districts pretreatment and pollution prevention 14 efforts. The District has a number of pollutants of concern in which the HHW facility helps remove from the wastewater entering the treatment plant. The HHW facility removed over 30,000 pounds of hazardous waste the treatment plant considers Pollutants of Concern, which are mercury, lead, copper, fat/oil /grease better known as FOG, legacy pesticides and others. See section 5 for additional information regarding the Districts pollution prevention efforts. 1 -5 Section 2: Program Description PROGRAM DESCRIPTION Objectives The objectives of the HHW Program are: Eliminate or reduce improper storage and disposal of hazardous wastes in sanitary sewers, storm drains, and solid waste landfills. • Encourage residents and small businesses to reduce their generation of hazardous waste. • Provide convenient, cost effective, and safe hazardous waste drop -off and disposal services for central Contra Costa County residents and eligible small businesses. • Follow the California Integrated Waste Management Boards waste management hierarchy: reduce - reuse - recycle hazardous waste to the greatest extent possible before incineration / treatment, and landfilling. • Comply with all applicable federal, state, and local regulations and requirements, including Central Contra Costa Sanitary District's National Pollutant Discharge Elimination System (NPDES) requirements. Goals To achieve the program objectives stated above, the following HHW Collection Program goals were established: • Maintain a minimum annual participation rate of four percent (4 %) of the households within each city and unincorporated community in the service area. • Provide educational outreach programs targeting central Contra Costa County residents and small businesses, emphasizing the importance of hazardous waste reduction, recycling and proper disposal. • Maintain a greater than 49 percent landfill diversion rate of the facility's total weight of wastes processed through the facility. See section 4 for results. • Increase the number of new small business program participants by at least 15 percent annually. See section 7. • Continually look for ways to improve operational efficiencies. 2 -1 HHW Facility Location and Operating Hours The HHW Collection Facility is located at 4797 Imhoff Place in Martinez, northeast of the Interstate 680 /Highway 4 interchange, adjacent to Central Contra Costa Sanitary District's Wastewater Treatment Plant. The facility is open to residents and small businesses Tuesday through Saturday, 9 a.m. to 4 p.m. No appointment is required for residents. The facility serves small businesses by appointment only. This HHW Facility schedule with weekday and Saturday hours is intended to provide the most convenient access to program services. The HHW Facility is closed on all District Holidays when they coincide with the regular operating days (Tuesday through Friday). In addition, the HHW Facility is closed for approximately one week for the Christmas /New Year's holiday period. Notice of these closures is provided through the CCCSD website, the HHW "800" number message, and posting a temporary sign on the entrance gate to the facility. Eligible Communities Residents and qualifying small businesses located in the following communities are eligible to utilize the HHW Facility services: Alamo, Blackhawk, Clayton, Clyde, Concord, Danville, Diablo, Lafayette, Martinez, Moraga, Orinda, Pacheco, Pleasant Hill, San Ramon, Walnut Creek, and other unincorporated central Contra Costa County areas. Types Of Hazardous Waste Accepted A full range of HW (e.g., products with corrosive, flammable, toxic or oxidizing properties) is accepted at the HHW Facility. Other products with labels indicating a hazardous material (i.e., the words, "poison ", "caution ", "danger', "warning ", "skin or eye irritant" and /or "environmental hazards ", for example) are also accepted. Typical types of hazardous wastes accepted include: cleaners, automotive care products, paint and paint related products, garden care and pest control products which were generated from use in the home, household batteries, and spent automotive batteries. Unacceptable wastes include: radioactive waste, pharmaceuticals, medical waste (e.g., hypodermic needles), explosive waste (e.g., ammunition, dynamite, shock sensitive chemicals), and waste contaminated with PCB's at concentrations greater than 50 ppm. 2 -2 Mercury Collection Program Mercury is a pollutant that causes water quality problems at very low concentrations. The HHW program promotes proper mercury disposal through acceptance of mercury containing wastes and a mercury thermometer exchange program. This program offers customers an electronic digital thermometer in exchange for their mercury thermometer. In fiscal year 2007/08, 1,971 mercury thermometers were collected from residents and small businesses. In exchange, the program gave out a total of 161 thermometers. To date, over 4,750 digital thermometers have been given out since the program began in 1999. Other types of mercury containing wastes accepted include fluorescent bulbs, mercury switches, and elemental mercury. An estimated 107 pounds of elemental mercury was collected from over 32,200 pounds of mercury containing wastes during fiscal year 2007/08. Mercury Collection Program — Schools In 2007, CCCSD implemented a Mercury Minimization Program for schools by conducting comprehensive pollution prevention audits of the high schools in our service area with a focus on mercury sources in labs and facility operations. This Program offers our high schools: • Free disposal of mercury wastes through our HHWCF • Free spirit - filled, lab grade thermometers in exchange for their mercury lab thermometers • Penalty -free compliance consultations during initial site visit to encourage adoption of mercury control best management practices • A recognition program to acknowledge high schools that adopted effective mercury control strategies; the first certificates will be issued by CCCSD at our Board Meeting during Pollution Prevention Week this year (2008) • Education about mercury pollution prevention via a flyer created by CCCSD for distribution to high school students and their parents The results for the first year of the program are below: • 8 High Schools participated • 174 mercury filled laboratory thermometers were collected • 1 pound of elemental mercury was collected • 135 spirit filled thermometers were exchanged • 12.25 pounds of mercury compounds were collected • Estimated cost of recycling the mercury, disposing of the mercury compounds and providing the spirit filled thermometers to the schools was $939 2 -3 HHW Reuse Program Program participants are encouraged to "shop" for free reusable products provided through the HHW Reuse Program. A wide variety of reusable household products including paint and paint related material, garden, automotive, cleaners, etc., are available for customers on a first come, first served basis. Reuse Room hours are: Tuesday through Saturday, 9 a.m. to 3:30 p.m. Only uncontaminated products that are in their original containers with original legible labeling are placed onto the Reuse Room shelves. Products that are banned by Federal, State, or local regulations are not placed in the Reuse Room. An estimated 338,942 pounds of reusable items were given away to more than 5,500 Reuse Room customers in fiscal year 2007/08. HHW Collection Facility Staffing The staffing objective is to operate the HHW Collection Facility with minimal contract staff during the periods with lower participation, and to supplement the regular staff with temporary labor when necessary to accommodate the seasonal fluctuations in participation that are experienced. The HHW Collection Facility began operating in 1997 with three regular staff: A Supervisor, one Senior HHW Technician and one HHW Technician 1 /II. This staffing level was based on an annual participation rate of four percent, which was almost doubled after the first year of operation. The participation level the first years the facility opened was 7.8% In response to the high demand for HHW drop -off service, the District's Board of Directors approved an additional regular HHW Technician 1 /II position during fiscal year 1999/00, and an additional regular Senior HHW Technician position during 2000/01. That level of regular District personnel: one Supervisor, two Senior HHW Technicians and two HHW Technician 1 /II's was achieved as of October 2001. Participation levels were at 10.8% With participation levels in fiscal year 2007/08 expected to exceed 14 %, the District's Board of Directors approved an additional HHW Technician 1 /II to meet the demands of participation. The new level of regular District personnel at the HHWCF is one Supervisor, two Senior HHW Technicians, and three HHW Technician 1 /II's. 2-4 HHW Collection Facility Rules The following HHW Collection Facility rules were established to 1) maintain compliance with Federal, State and local regulations, 2) determine program eligibility, and 3) maintain a safe operation: • The waste must be generated by a central Contra Costa County resident or business and transported to the HHW Collection Facility or temporary HHW collection events by an eligible resident or business. Exceptions are accommodated for certain circumstances (e.g. deceased eligible resident with a family member from out of the service area delivering the wastes and District employees who live outside the CCCSD service area). • The quantity of hazardous waste transported by residents must not exceed 125 pounds (approximately 15 gallons), or 220 pounds (approximately 27 gallons) if transported by businesses. • Participants must not transport unacceptable HHW to the facility (explosives, pharmaceuticals, medical waste, PCB waste, or radioactive waste). Participants must remain in their vehicle. • Participants must not smoke while receiving HHW collection service. • Businesses must make an appointment prior to dropping off hazardous wastes. • HHW shall not be illegally dumped. The two rules that have been violated most frequently are: 1) participants exceeding the allowable transportation limit and 2) residents and businesses arriving from outside of the service area. The discussion below explains how each violation is addressed. Participants are asked to remain in their vehicles for their own safety and as required by law. Participants are also asked to transport waste in closed containers no larger than five gallons and carefully packed (no garbage bags) to prevent spills during transport. Separating products by material type is recommended to avoid the potential for mixing of incompatible chemicals that can react and create toxic vapors during transport. Transportation Limits Transportation limits apply to both residential and small business customers using the facility. The transportation quantities apply to the actual amount of waste transported to the 2 -5 facility and not the containers' capacity. The applicable transportation limits for residential customers are 125 pounds or 15 gallons, and the limit for business customers is 27 gallons or 220 pounds. During fiscal year 2007/08, 2,033 residential customers (7.3 percent of residential customers) delivered wastes to the HHW Collection Facility in excess of the transportation limits. This is an increase from last year's 6.3 percent. The reason for the increase can be attributed to the increase in participation partly due to the universal waste regulations described in Section 1 and rising cost for fuel. Typical reasons customers express for exceeding the limit are: 1) we are moving and had to get rid of all of our HHW today, 2) we are from out of town /state, and are cleaning our estate property, and 3) gas prices are too high to make multiple trips. The customers were informed that they had exceeded the transportation limit, provided with written information regarding the transportation limits, and the wastes were received and processed through the facility. The majority of these violators were Concord, Walnut Creek, and Martinez residents. Proof of Residency Proof of service area residency (California driver's license) is required prior to facility acceptance of hazardous waste to verify program eligibility. Only residents and businesses located in central Contra Costa County are eligible. When customers from outside the facility's service area arrive to drop off wastes, their waste is rejected and they are provided with contact information for the program in their area of residency. Two exceptions are made for accepting HHW generated from outside of the facility's service area: 1) any CCCSD or Mt. View Sanitary District employee is eligible for service; 2) HHW is accepted and processed if the load is determined not to be safe for further transport. An example would be wastes delivered in a leaking container. During fiscal year 2007/08, a total of 114 customers arrived from outside of the facility's service area. Based on the HHW acceptance criteria above, 72 of the 114 loads were rejected, 1 load was deemed unsafe for further transport and 38 were accepted and processed. The rejected loads were delivered from either east or west Contra Costa County, Solano County, or were small businesses unaware of the program requirements. Eligible small businesses were given literature regarding our Small Business Hazardous Waste Program. The number of rejected loads is slightly higher than last year's total of 36 rejected loads. 2 -6 Unacceptable Wastes There are very few unacceptable wastes that can be received and processed through the facility. When unacceptable wastes are delivered to the facility, they are rejected unless staff determines the waste is unsafe for further transportation. Under this scenario, the wastes are accepted and processed ysafely, and the event is recorded for the facility's operating record. During fiscal year 2007/08, there were no incidents involving potentially explosive materials (PEM). There was only one PEM instance the previous fiscal year. This could be attributed to our continued outreach explaining the hazards of these types of materials and if found, how to manage them. Other less dangerous but unauthorized wastes that were brought in include ammunition discovered in loads after the customer leaves the facility. Ammunition and related products (e.g., fireworks, gunpowder, primers, etc.) are the most common types of unacceptable waste received and are usually picked up by the Sheriffs Department staff or a local firearms dealer. Abandoned Wastes Occasionally, hazardous wastes are abandoned near the HHW Collection Facility or along the access roads to the facility. HHW staff performs a community inspection two times per week in order to identify abandoned wastes promptly. Either the security service or District staff identifies other abandoned wastes. During fiscal year 2007/08, a total of 3 events were recorded where hazardous wastes were abandoned at or near the facility. Although clear signage is posted to discourage illegal dumping, the parking area near the entrance or exit gates of the HHW Collection Facility is the typical location where wastes have been abandoned. The waste types found were typical household wastes such as oil, paint, batteries, and propane cylinders. In all of these cases, the hazardous wastes were processed through the HHW Collection Facility. Funding For residents within the District, funding is provided by a component of the Central Contra Costa Sanitary District's Sewer Service Charge, (approximately $9.65 per household per year of the total annual Sewer Service Charge of $311). For residents outside the District's Sewer Service Charge areas, the HHW Collection Facility is funded through service 2 -7 agreements with Mt. View Sanitary District, Concord, Clayton and San Ramon (for their residents to the south who are outside the District's service area). They are charged the same as the households within the District. Reference Section 9 for additional information. Additional Information Further details about the HHW Collection Program can be obtained by calling the HHW information line: 1- 800 - 646 -1431, or by accessing the web sites at www.centralsan.org or www.mvsd.org 2 -8 Section 3: HHW Collection Facility Residential Participation HHW FACILITY RESIDENTIAL PARTICIPATION During fiscal year 2007/08, 27,524 residential loads of HHW were processed through the permanent HHW Facility. Combined with the 463 customers served through the temporary HHW collection events, a total of 27,987 residential loads of HHW were processed during fiscal year 2007/08. This represents a 14.5 percent (using 27,940 District participants) participation rate of the 192,280 households in the program service area. This is an increase of 0.9 percent from the 13.6 percent participation rate experienced during fiscal year 2006/07. During this fiscal year, 16.2 percent of the residential participants were "first timers" to the facility. This level of new participants is lower than the last three years. The number of households in the District was updated and reduced in 2008 by 2,273 households. Both Mt. View Sanitary District and the City of San Ramon reduced the number of homes in their service area and city. Mt. View's update was due to an error when they included commercial use connections with their residential connections. San Ramon's adjustment came when the Dublin San Ramon Services District provided a more accurate number of residential connections they serve in the City of San Ramon. 3,000 2,500 i 2,000 w 1,500 E = 1,000 500 H Figure 3 -1 HHWCF Participation Cars per Month Fiscal Year 2007 / 2008 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June 3 -1 Table 3 presents the distribution by jurisdiction of the 27,987 participants in the residential portion of the HHW Program. The 47 residents outside of the facility's service area shown on Table 3 were excluded from the participation rate calculation. Table 3 shows that each community exceeded the annual goal of 4 percent participation. Annual combined permanent facility and temporary event participation ranged from 6.1 percent in the City of San Ramon to 23.1 percent in the City of Lafayette. It is important to note that the City of San Ramon is the only jurisdiction that has previously relied, in part, on temporary event participation to achieve the minimum 4 percent participation goal. This is the fifth consecutive year the City of San Ramon has exceeded the 4 percent permanent facility participation goal, with a participation rate of 4.7 percent. Our tracking of residents from unincorporated areas depends on residents' awareness of their address being located in an unincorporated community versus an incorporated city. Many residents are uncertain of this distinction. In this instance, HHW Collection Facility staff assumes that the address is in an incorporated area. Therefore, the 8.0 percent participation rate shown in Table 3 for the unincorporated areas may be understated since cities like Walnut Creek, Pleasant Hill, Lafayette, and Martinez have pockets of unincorporated areas within and around them. Conversely, the participation rate shown for these cities may be slightly overstated. Monthly participation at the permanent facility ranged between 1,243 cars in December and 2,790 cars in July. The lower participation during the winter months is attributed to fewer operating days due to the holidays, and seasonal Figure 3 -2 fluctuations in participation HHWCF Participation presumably due to more Average Cars per Day Fiscal Year 2007 / 2008 inclement weather. This fiscal year of operation Aso � 121 147 began with a high 120 participation of 2,790 cars E 90 91 99 in July 2007, slowly d 80 a declined to 1,243 cars in 40 December, and then ended at 2,375 cars in June 2008 ° Tuesday Wednesday Thursday Friday Saturday (see Figure 3 -1). Figure 3- Days y Aeration 2 presents the average 3 -2 Figure 3 -3 HHWCF Participation Overall Average of Cars per Day 120 100 g 80 60 40 20 0 residential participation for each day of operation, Tuesday through Saturday. Figure 3 -2 shows that Tuesdays and Saturdays continue to have the highest customer usage. The average number of cars on Tuesday has increased from 101 cars in 2005/06 to 114 e ��oo h�o(0 o�o� 100 �� �� cars in 2006/07 to 121 cars * From Fiscal Year 1997 /98 to September of 2001, the HHW Facility operated only 3' /2 days per in 2007/08. The average week. Beginning in September 2001 the facility operates 5 days per week number of cars on Saturdays has also increased from 127 cars in 2005/06 to 139 cars in 2006/07 to 147 in 2007/08. The number of cars per day increased from an overall average of 105 cars per day in fiscal year 2006/07 to 112 cars per day in fiscal year 2007/08. Figure 3 -3 presents a comparison of the average number of cars per operating day since the HHW facility opened. Presenting the data in this manner factors out the effect of varying number of operating days between months. The patterns are similar from year to year, with a slight shift in the number of cars between each year. This data serves as a tool to plan for staffing levels through the different seasons and to promote the facility's services. Figure 3 -4 shows the consistent increase of participation since the HHW Program began. Regulatory changes and increased public awareness of HHW disposal requirements are some of the reasons for the HHW programs over- growing success. Figure 3 -4 HHW Participation Participants vs. % of Households GIB] 30,000 25,000 20,000 it 0 ,s,000 � ,0,000 a 5,000 0 w Table 3 Residential Participation by Jurisdiction Fiscal Year 2007 / 2008 Community' Number of Households Number of Cars z HHW Facility % of Temporary % of Participation Community Event Community Participation Total Total % of Participants Community Clayton 3,954 658 16.6% 0 0.0% 658 16.6% Concord 45,443 6,932 15.3% 0 0.0% 6,932 15.3% Danville 15,387 1,909 12.4% 88 0.6% 1,997 13.0% Lafayette 9,320 2,150 23.1% 0 0.0% 2,150 23.1% Martinez / Mt. View 20,957 4,409 21.0% 0 0.0% 4,409 21.0% Mora a 5,693 849 14.9% 0 0.0% 849 14.9% Orinda 6,681 1,286 19.2% 0 0.0% 1,286 19.2% Pleasant Hill 14,206 2,401 16.9% 0 0.0% 2,401 16.9% San Ramon 21,752 1,021 4.7% 367 1.7% 1,388 6.4% Walnut Creek 31,187 4,447 14.3% 1 0.0% 4,448 14.3% Unincorporated 17,700 1,415 8.0% 7 0.0% 1,422 8.0% Subtotal 192,280 27,477 14.3% 463 0.2% 27,940 14.5% 3,4 Out of Service Area N/A 47 N/A 0 N/A 47 N/A oa 2 524 14.3% 463 0. o 14.5% ' CCCSD estimate based on January 2008 Department of Finance data and data provided by MT. View Sanitary District and the City of San Ramon. 2 One temporary HHW collection event was held in San Ramon during fiscal year 2007/2008. See Section 6 for details. 3 Hazardous waste from outside of the service area was accepted and processed for one of two reasons: 1) employees from CCCSD and Mt. View Sanitary District who live outside of the service are also eligible for HHW program participation, 2) household hazardous waste generated outside the service area that is deemed unsafe for further transport is accepted and processed as a safe and responsible business practice. 4 The number of cars outside of the service area was not included in the participation percentage. Section 4: Quantities of Wastes Collected QUANTITIES OF WASTES COLLECTED The HHW Collection Program disposed or recycled 1,552,421 pounds of waste during fiscal year 2007/08 (see Table 4). This amount of waste disposed of is about 26,600 pounds less than last year, 2006/07. Adding the 338,942 pounds of HHW collected, separated and given to the public for reuse, 1,891,363 pounds of HHW were collected and processed through the HHW Collection Facility (see Table 5). An average of about 67 pounds of HHW per car was dropped off by 28,373 (27,987 residents and 386 small business appointments) customers. The wastes were transported from the HHW Collection Facility for either reuse, recycling, fuel blending, incineration, treatment or landfill. Data specific to the Reuse Room participation and materials reused is presented in Section 5 of this report. The following tables and figures provide summary data for HHW processed through the facility: • Table 4 presents the distribution of HHW processed through the permanent facility, and at the one -day collection event, by participating jurisdictions. The distribution was calculated by multiplying the percentage of participants from each jurisdiction times the total weight of waste processed. • Figure 4 -1 presents the quantity of wastes transported off -site each month. • Figure 4 -2 presents a breakdown of hazardous wastes processed by type of waste. The transportation classifications on the shipping documents were used as the primary means for segregation into waste type. • Figure 4 -3 presents the distribution of hazardous wastes processed by management method. The HHW Collection Program's eleventh fiscal year of operation was highly successful in providing an appropriate option for customers to properly manage their HHW. This success resulted in the removal of potentially dangerous materials from peoples' homes, diverting the wastes from possible illegal disposal to the solid waste, storm drains, and sanitary sewer systems. The California Integrated Waste Management Board ( CIWMB) requires a report for each fiscal year (July through June) summarizing the amount and types of hazardous waste processed through each HHW Collection Program in the state. The report also shows a breakdown of the waste management method for each type of hazardous waste. This report, CIWMB Form 303, for fiscal year 2007/08, is included in Appendix I. This is the first year the waste management method of landfilling has exceeded 0.1 % of the 4 -1 total amount of wastes disposed. Normally, only asbestos is sent for direct landfill from the HHW facility. In February of 2008, an error in how latex paint was being managed was found. From November 2007 through January 2008, Philip Services Corporation, the HHW Programs waste management contractor failed to notify the District that their treatment facility in Kent, WA was no longer capable of fuel blending latex paint. Fuel blending is a method of waste management that takes wastes that have BTU value and blends them together to form a fuel for use in the production of Portland cement. Assuming the District was aware of this new restriction, the Kent, WA facility proceeded to stabilize (solidify) and landfill 45,650 pounds of latex paint without the approval of the District. From January forward, all latex paint collected for disposal is now recycled into either recycled paint or used as a binding agent for making cement products. 200,000 ,a 160,000 s 120,000 M 3 0 80,000 r p1 40,000 3 0 Figure 4 -1 Waste Disposal per Month Fiscal Year 2007 / 2008 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Includes weight of HHW disposed from the permanent HHW Collection Facility and the San Ramon one -day temporary collection event. 4 -2 3; Figure 4 -2 Breakdown of Waste Shipped by Weight ( %) of Major Categories Fiscal Year 2007 / 2008 5% 9% 12% 19% • Oil Based Paint • Motor oil /Oil Filters 6% 13 Latex Paint Other —2% ■ Flammables ■ Car Batteries 0 ° ❑ Poisons ■ Aerosols 3% ■ Corrosives ❑ Household Batteries Figure 4 -3 Waste Management Method Breakdown Percentage of Waste Processed by Weight Fiscal Year 2007 / 2008 39.4% 2.7% N111106-= --- 31.4% 4 -3 6.6% 2.0% 17.9% • Reuse • Fuels Substitution • Landfill • Recycle • Incineration El Treatment Table 4 Estimate of HHW Collected By Community Fiscal Year 2007 / 2008 Community Number of Cars Percent of Total Cars Estimate amount of Waste Collected by Community (pounds) Clayton 661 2.3% 44,063 Concord 7,048 24.8% 469,824 Danville 2,006 7.1% 133,721 Lafayette 2,169 7.6% 144,587 Martinez / Mt. View 4,493 15.8% 299,506 Mora a 857 3.0% 57,128 Orinda 1,309 4.6% 87,259 Pleasant Hill 2,425 8.5% 161,652 San Ramon 1,417 5.0% 94,458 Walnut Creek 4,502 15.9% 300,106 Unincorporated 1,438 5.1% 95,858 Subtotal 28,325 99.8% 1,888,163 Out of Service Area 48 0.2% 3,200 Miall 28,373 100.0% 1,891,363 ' The total number of cars includes 27,987 cars from the permanent facility, 463 cars from the temporary HHW collection events, and 386 business appointments. 2 The total weight collected includes HHW disposed and reused from the permanent facility (residents and businesses) and from the temporary HHW collection event. Section 5: Pollution Prevention POLLUTION PREVENTION EFFORTS Central Contra Costa Sanitary District ( CCCSD) owns and operates a municipal wastewater collection system and a 45 MGD (average dry- weather flow) treatment plant. CCCSD collects, treats, recycles and disposes wastewater from approximately 445,000 residents of central Contra Costa County. The collection area covers 141 square miles and includes approximately 1,500 miles of sewer pipes. Each year, the treatment plant treats over 17 billion gallons of wastewater. Of that, 600 million gallons of treated effluent is recycled and distributed back for landscape irrigation and in -plant uses. The remaining 16 billion gallons is discharged via a deep -water outfall to the Suisun Bay. CCCSD'S Pollution Prevention Program CCCSD's Pollution Prevention (132) Program has evolved over the years to become an important component of CCCSD's organizational mission, which specifically includes P2 and reflects the growing importance of P2 for regulatory compliance. The District's treatment plant is required to monitor and prevent certain pollutants from entering the influent wastewater. These efforts utilize the HHW facility by one; removing the waste before it reaches the sewer and two; tracking the amount of waste that is diverted. The HHW facility properly disposes of many chemicals, but the chemicals the treatment plant is most concerned of are: mercury, cyanide, dioxins, acrylonitrile, copper, lead and, fats, oils and grease (FOG). HHW staff is also monitoring the intake of bis- tributyltin, dieldrin, DDT (4,4 -DDE) and, diazinon and chlorpyrifos, as well as some emerging pollutants such as polychlorinated biphenyls (PCB's) and, pharmaceuticals and personal care products. The District's pollution prevention activities and their effectiveness measurements are summarized below. Mercury Collection Program The HHW program facilitates CCCSD's promotion of proper mercury disposal by accepting elemental mercury, mercury containing devices (e.g., fluorescent bulbs, batteries, mercury switches and mercury thermometers) and mercury containing compounds (paints and pesticides containing mercury). Since the beginning of the mercury thermometer exchange program in 1999, approximately 4,750 digital thermometers have been provided to customers in exchange for a mercury 5 -1 thermometer dropped off at the permanent HHWCF. In fiscal year 2007/08, a total of 161 digital thermometers were exchanged for 1,971 mercury filled thermometers. Assuming 1 gram of mercury per fever thermometer, the HHW program kept approximately 4.3 pounds of elemental mercury out of the environment from the collection of thermometers alone. Table 5 -1 describes the types of mercury- containing wastes that are tracked by HHW staff. This system closely estimates the quantities of mercury contained in fluorescent lamps, thermometers, thermostats, switches and button cell batteries. Elemental mercury is also weighed and tracked. A total of approximately 107 pounds of mercury contained in these types of wastes was collected through the HHW program during fiscal year 2007/08. In 2007, 41 pounds of mercury- containing compounds were collected. The portion of mercury in these paints, pesticides and other compounds is unknown but are listed as active ingredients on the labels. Table 5 -1. 2007/2008 Mercury Collection Summary Mercury- Containing Devices Number Units Estimated Total Pounds of Items Quantity of Mercury Fig Thermostats 3 gm/unit) 206 Ea 618 Grams 1.36 Thermometers 1 gm/unit) 1,971 Ea 1,971 Grams 4.34 Elemental H Ibs) 93.25 Lbs 93.25 lbs. 93.25 Switches 4 Lbs 3.38 Ibs 3.38 Mercury Batteries 273 Lbs 853,125 Milligrams 1.88 Fluorescent Lams 251,533 Feet 1,433,738 Milligrams' 3.15 Total Hg in Pounds 107.35 Paints, pesticides & other 41.44 Containers 41.44 Ibs. 6 41.44 com ounds containing mercury Thermostats - Each HVAC type thermostat contains approximately 3 grams of Hg in each ampoule. 2 Thermometers - A number of studies report that mercury- containing thermometers contain between 0.5 and 3 grams depending on their size. As a result, the fever -sized thermometer (1gram Hg / thermometer) will be used to calculate the quantity of mercury in all thermometers. Depending on the size of the thermometer, an estimated equivalent number of fever -sized thermometers will be used (i.e., laboratory thermometers contain an average of 5 grams of mercury per thermometer. This sized thermometer would contain 5 fever -sized thermometers.). 3 Switches - As there are no standard sizes or quantities of mercury in switches, all switches will be weighed and 10% of the gross weight of switches will be subtracted to account for the containers. "Mercury Batteries - Studies show that button cell batteries can contain up to 25 mg of mercury in each battery. Since there is a wide variety in the sizes of button cells, the following is assumed: There are roughly 250 various sized button cells in one pound. An average of 12.5 mg /cell accounts for all sizes. Therefore, 250 cells x 12.5 mg = 3,125 mg of mercury per pound of button cell batteries. 5 Based on numerous studies, fluorescent lamps have as little as 3.5 mg of mercury with some having as much as 60 mg. The average concentration found after 1994 is 22.8 mg per 4 -foot lamp. For this report, 22.8 mg per 4 -foot lamp (or 5.7mg per foot of lamp) was used. 5 The weight of paints, pesticides, and other is not included in the Total Hg in Pounds figure. The actual mercury content is unknown. On product labels the concentration is not always listed. The weight is calculated as the pesticides are in Table 7. 5 -2 Hazardous waste manifests and bills of lading are the documents used to track quantities of HHW shipped from the HHWCF. Rather than weigh each shipping container, an estimated weight is assigned to each container according to its size and waste type. Using this tracking methodology, an estimated 1,400 pounds of light ballasts containing PCBs and approximately 137,575 pounds of lead containing wastes (lead acid batteries and lead compounds) were collected and properly disposed or recycled. Some legacy pesticides and other pollutants of concern are tracked separately in order to provide a more accurate report of collected compounds. Table 5 -2 below shows which pesticides and POC's are tracked and the quantity collected in fiscal year 2007/08. As every container of waste collected is not full, an estimate of the average of a half -full container was used to calculate the amount of waste in a single container. This has proven to be a conservative estimate. Table 5 -2. FY2007/08 Miscellaneous Chemical Collection Summary Liquids Solids Pint Quart Gallon <5lbs. <15lbs. <30lbs. (1.0631bs.) (2.125 lbs.) (2.51bs) (7.5Ibs) (15lbs) Compound Lbs. Lbs. Lbs. Lbs. Lbs. Lbs. Total Pounds Tributyltin 17 31.88 2150.5 2.5 0 0 2,201.88 Diazinon 733.13 731 340 527.5 300 30 2,661.63 Chlorpyrifos 261.38 618.38 1258 202.5 67.5 0 2,407.75 Copper 359.13 716.13 2720 280 15 0 4,090.25 1 Pentachlorophenol / 2,4,5- / Trichloro henol 108.38 165.75 850 12.5 0 0 1,136.63 Lindane 202.94 59.5 8.5 120 0 0 390.94 Chlordane 128.56 265.63 127.5 147.5 0 45 714.19 DDT (DDE) 27.63 1 27.63 0 20 0 1 0 75.25 Dieldrin 1.06 12.75 17 7.5 0 0 38.31 Aldrin /Heptachlor /Endrin[To xa hene /Endosulfan 9.56 17 8.5 10 0 0 45.06 Lead Compounds 11.69 4.25 136 2.5 0 0 154.44 Nickel Compounds 2.13 1 0 68 0 0 0 70.13 Mercury Compounds Paints, etc. 20.19 4.25 17 0 0 0 41.44 Arsenic Compounds 227.38 157.25 51 62.5 15 0 513.13 Zinc Compounds 44.63 161.50 374 77.5 7.5 1 0 665.13 Fats, Oils and Greases (FOG) 10.63 291.13 3,647 10,848 5- gallon containers o FOG @ 32lbs. Each 14,796.25 Total 30,002.38 5 -3 Section 6: Wastes Diverted From Landfill Disposal WASTES DIVERTED FROM LANDFILL DISPOSAL The California Integrated Waste Management Act of 1989 (AB 939) requires diversion of HHW from the municipal solid waste stream. AB 939 established a waste management hierarchy to minimize the amount of collected HHW sent to hazardous waste (Class 1) landfills through reduction, reuse, recycling, treatment, or incineration (fuel blending or destructive incineration), with emphasis on reduction, reuse and recycling whenever possible. The HHW Collection Facility's waste management strategy mirrors AB 939, prioritizing HHW reduction, reuse, recycling, and fuel blending, in that order, to the greatest extent feasible. The HHW program experienced a 51 percent reuse /recycling rate in its first two years of operation, fiscal years 1997/98 and 1998/99. A reuse /recycling rate of 49 percent was achieved the following three fiscal years, 1999/00 through 2001/02. With this demonstrated ability to consistently maintain a high reuse /recycling rate, the District established a goal in fiscal year 2001/02 to maintain a greater than 49 percent reuse /recycling rate of the facility's total weight of HHW processed through the facility. This goal was also met in fiscal years 2002/03 and 2003/04, with reuse /recycling rates of 54 percent and 61 percent, respectively. It should be noted that fuel blending is also a beneficial use of HHW that diverts HHW from landfills. Fuel blending represents a type of resource conservation by replacing natural gas or other raw fuel with high BTU value HHW (oil based paint, gasoline, etc.) to fuel a cement kiln for manufacturing Portland cement and masonry products. Therefore, the District's goal was revised in fiscal year 2004/05 from a minimum of 49 percent HHW reuse /recycling to a minimum of 49 percent HHW landfill diversion, in order to capture the quantity of HHW that was fuel blended as a waste management method that results in beneficial use of HHW (see Section 2, Goals). The HHW program's progress toward landfill diversion for fiscal year 2007/08 is outlined below. HHW Reduction The District has achieved eleven successful years of its Integrated Pest Management (IPM) Program, which encourages the reduction of hazardous waste generated through alternative gardening maintenance techniques and plant selection. IPM activities include store participation to promote less -toxic pest control products, "Healthy Gardening" workshops conducted by Master Gardeners at various locations throughout the HHW program service area, and distribution of a free video entitled, "The Healthy Home and C. Garden: Less -Toxic Pest Control ", through libraries and video stores in our service area. HHW Reused Screening wastes collected and segregating reusable products for free give -away creates a situation that benefits all parties by minimizing the amount of waste requiring recycling or disposal and reducing operating costs. A quality assurance plan is in place to ensure that the reusable product's container has its original label and is in good condition. Personal care products, commercial and industrial products, and products containing banned chemicals such as legacy pesticides, or chemicals slated to be banned such as copper napthanate, tributyltin oxide, and methylene chloride commonly found in insecticides, fungicides, and paint related materials, are not given away. Reuse accounted for roughly 18 percent of the total amount of waste collected by the HHW Program. The amount of reusable items given away increased by 2 percent or about 22,000 pounds from last fiscal year. The Reuse Program continued to be promoted through the facility staff, the CCCSD Pipeline, the CCCSD website, business trade shows and word of mouth. Approximately 5,497 Reuse Program participants were given over 338,942 pounds of free reusable items during fiscal year 2007/08. This represents an average of nearly 62 pounds per participant, or about 28,245 pounds of reusable items per month. The estimated cost savings achieved through the reuse program is $335,553. This is based on the operating cost of $0.99 per pound (figure 1 -4) and 338,942 pounds of HHW reused and diverted from disposal. HHW Recycled In fiscal year 2007/08, the amount of waste recycled increased to 745,106 pounds from 464,724 in 2006/07. This is mainly due to switching latex paint from fuel blending to recycling. In fiscal year 2007/08, Fluorescent lamps volumes increased by 77 percent, while battery volumes decreased by 31 percent. The decrease in the amount of batteries collected though the HHW program can be contributed to the battery collection program sponsored by the Central Contra Costa Solid Waste Authority. Their retail and curbside collection program collected more than 37,500 pounds of household batteries. The types of hazardous waste recycled at off -site facilities include: latex paint, used motor oil /filters, antifreeze, car batteries, propane cylinders, fluorescent lamps, lead, mercury, household batteries and printer cartridges. Table 6 shows the quantity of each type of recyclable waste, totaling 745,106 pounds, or 39 percent of the total quantity of HHW collected. HHW Fuel Blended In fiscal year 2007/08 a total of 593,850 pounds of oil based paint and other flammable liquids (gasoline, paint thinners, etc.) was blended with other flammable hazardous wastes and used as a fuel source at a cement kiln. This management method accounted for 31.4 percent of the total quantity of HHW collected as shown in Table 6. While fuel blending is lower in the waste management hierarchy than recycling, it is still a beneficial use that avoids destructive incineration or Class I landfill disposal. Progress Toward Diverting HHW From Landfills The total quantity of HHW diverted from landfills and processed through recycling and fuel blending for beneficial use is 1,338,956 pounds, or 71 percent of the total amount of HHW collected. Adding the estimated amount of HHW reused, 338,942 pounds, brings the total diverted amount of HHW to 1,677,898 pounds, or 89 percent of the total quantity of HHW collected. This level of landfill diversion far exceeds the current reuse /recycling goal of 49 percent. Considering reuse and recycling separately from fuel blending, a landfill diversion rate of 57.3 percent was achieved (1,084,048 pounds). Beginning in February of 2008, latex paint has been recycled to resume the previous year's high reuse /recycling rate. M, Table 6 Quantity of Landfill Diverted Waste Fiscal Year 2007 / 2008 Material Type Quantity Recycled (Lbs.) Recycled /Reused Motor oil / oil filters 191,632 Antifreeze 26,582 Car batteries 119,440 Fluorescent lamps 32,114 Propane cylinders 19,850 Scrap metal (lead, brass and copper) 405 Printer cartridges 47 Mercury (elemental) 116 Household batteries 44,370 Latex Paint 310,550 Total recycled Waste 745,106 Reused HHW 338,942 Total recycled and reused HHW 1,084,048 Percent of HHW reused or recycled 57.3% Fuel Blended Oil based paint 301,600 Other flammable liquids 142,650 Latex paint 149,600 Total fuel blended waste 593,850 Percent of waste fuel blended 31.4% Total landfill diverted Waste 1,677,898 Percent of waste diverted from landfill 88.7% Total waste throughput, including reused, recycled, and disposed 1,891,363 6 -4 Section 7: Temporary Collection Event TEMPORARY COLLECTION EVENT The HHW program participation goal is to serve at least 4 percent of the households in each community in the service area. The objective of conducting a temporary collection event is to supplement participation in the communities most remote to the HHW collection facility or with the lowest participation. Participation at the permanent facility has met this participation goal each of the past five years. In fiscal year 2007/08, the District's Board of Directors proposed that if cities in the District wanted to sponsor a temporary HHW collection event in their city, they would have to pay a fair portion of the costs to hold the event. The proposal was to charge the cities that agreed to have an event, the incremental difference of the costs per car calculation at the permanent facility from the cost per car charges at the event. The cost per car at past events has averaged around $78 per car. The cost per car at the permanent facility for fiscal year 2006/07 was $61 per car. Under the proposal the city would expect to pay around $17 per car for the entire event. A letter was sent to each of the City Managers in the HHW service area. Only one community, the City of San Ramon, replied wanting to hold the event based on the cost share proposal. The same types of HHW received at the HHW Collection Facility are accepted at temporary HHW collection events. Appointments are required for participation. Philip Services Corporation (PSC), the HHW program waste services contractor, managed the appointment system for the event. Small business customers are not served through the temporary event. Businesses are referred to the permanent facility for hazardous waste disposal service. The majority of the communities in the HHW service area experience a permanent HHW facility participation rate in the double digits, ranging from 13.0 percent to 23.1 percent (see Section 8 for summary). In fiscal year 2007/08, the City of San Ramon achieved a 4.7 percent participation rate at the permanent facility. A temporary collection event was held on June 7, 2008 in San Ramon and served a total of 463 residents. Temporary event participation in San Ramon increased by 32 percent from the previous year. A total of 36,229 pounds of household hazardous waste was collected at a total event cost of $33,180. The cost per car for the event was $71.66. The City of San Ramon's portion of the cost of the event was $4,937, which covers the difference between the cost per car at the event $71.66 and the cost per car at the permanent facility, $61. Table 6 presents the participation summary of the event. Figure 6 -1 presents the trend in 7 -1 cumulative participation at the San Ramon temporary HHW collection events held since the beginning of the HHW program in fiscal year 1997/98. The hazardous wastes received at the temporary collection events were properly packaged for off -site transportation at the collection event site. To control costs from the collection events, all partially full drums of hazardous waste were transported to the permanent HHW Collection Facility to be consolidated with HHW received at that facility. Eligible reuse items received at the temporary collection events were also transported to the HHW Collection Facility where they were placed onto the shelves of the Reuse Room. Table 7 Temporary HHW Collection Event Participation Summary Community San Ramon June 7, 2008 # of Participants % of Participants Clayton 0 0 Concord 0 0 Danville 88 19.0 Lafayette 0 0 Martinez / Mt. View 0 0 Moraga 0 0 Orinda 0 0 Pleasant Hill 0 0 San Ramon 367 79.3 Walnut Creek 1 0.2 Unincorporated 7 1.5 Out of Service Area 0 0 TOTAL 463 100% 7 -2 W Figure 7 -1 Total Cars Served at Temporary Collection Events 1000 IK 800 600 +Danville Lafayette L V 400 --*—San Ramon • Walnut Creek 200 0 1-4 7 �0�`00 00 0 00`00 �oo`o►. o'41 P Fiscal Year *The temporary collection event in Walnut Creek (Rossmoor) in FY05 /06 was a Mercury Thermometer Exchange Event. Section 8: Small Business Program SMALL BUSINESS PROGRAM Small Business Program Description An important component of the HHW Collection Facility services is the collection of hazardous wastes from small businesses that qualify as "Conditionally Exempt Small Quantity Generators ( CESQG)" under the State of California's hazardous waste management laws. This program is intended to offer a viable hazardous waste disposal service for smaller companies that may not have access to cost - effective service for proper hazardous waste management. An appointment packet is used to provide information about the service including eligibility, operating requirements, and the appointment process. The business completes the Waste Certification and Inventory Form and submits it to the HHW Program staff to initiate the appointment process. HHW staff provides a price quote for disposal charges for the inventoried wastes and sets an appointment for the business to deliver the wastes to the facility. In most cases, same day appointment service is available to customers. The business is provided a copy of the completed Waste Certification and Inventory Form to serve as the business' record of proper disposal for the wastes. The largest volume of wastes processed through the CESQG program is paints and paint - related materials (e.g., thinners). The significant differences between the residential service and the CESQG program are: • Appointments are required for CESQG participants; and • Administration and disposal costs for the wastes are recovered through a disposal charge and $20 per appointment administration fee at the time of service. The facility is open to serve small business customers Tuesday through Saturday. The types of businesses using the facility's services continue to be diverse, ranging from painting contractors to small manufacturing companies. Approximately half of the business participants are comprised of painting contractors, general contractors, and public agencies. The majority of the business participants, 68 percent, are located in Martinez, Concord, and Walnut Creek. Small Business Program Revenue The amount of revenue collected from businesses for hazardous waste disposal during fiscal year 2007/08 was $34,324 (see Table 8 -2), or approximately $89 per appointment. 8 -1 This is a decrease of 10 percent compared to last years figure of $99 per appointment. The $34,324 of revenue includes $7,720 from Administration fees collected for each appointment ($20 per appointment). See appendix III for the current CESQG disposal charges. Small Business Program Participation In fiscal year 2007/08, the small business program served 386 appointments for 191 businesses. This is a 4 percent increase in the number of business appointments and a 19 percent increase in the number of businesses. Table 8 -2 presents the data for CESQG program participation during fiscal year 2007/08, and includes the data from the previous eight fiscal years for comparison. Table 8 -3 lists the companies and government agencies that used the small business program services during fiscal year 2007/08. During the HHW facility's eleven years of operation, CESQG program participation grew from 49 participants in the CESQG program's first year of operation (fiscal year 1998/99) to 191 participants in fiscal year 2007/08. Small Business Program Outreach To date, CESQG outreach activities have included on -going advertising in local chamber of commerce publications, the District's Pipeline newsletter, advertising conducted by the Central Contra Costa Solid Waste Authority, Business Trade Fairs, and word of mouth by District's Source Control Inspectors, as well as Contra Costa County Hazmat Program inspectors, as they complete their field work auditing the operations of eligible businesses. In fiscal year 2005/06, targeted outreach was conducted in markets that program staff assumed would be eligible for the small business program. This did not result in a change in participation as no one that was targeted inquired about the program. In the past six years there have been a total of 806 businesses that used the CESQG program. Of the 806 businesses, 55 percent or 443 are businesses that were new to the program since 2002/03, the year we began tracking new vs. repeat. That is an average of 74 new businesses each year. Outreach efforts will continue with our normal venues Pipeline articles, inspectors, tradeshows and word of mouth. These appear to be the most effective methods of advertising the small business program. 8 -2 W Figure 8 -1 CESQG New Customers vs. Repeat Customers 200 1 160 61 128 ' L E 120 108 101 0 90 80 1 40 0 FY2001 /02 FY2002/03 FY2003/04 FY2004/05 FY2005/06 FY2006/07 FY2007/08 ■ Repeat 0 New Table 8 -1 SMALL BUSINESS PARTICIPATION BY JURISDICTION NUMBER OF BUSINESS APPOINTMENTS COMMUNITY Fiscal Year 2007/2008 Previous Fiscal Year Clayton 3 4 Concord 116 116 Danville 9 6 Lafayette 19 4 Martinez / Mt. View 84 81 Moraga 8 8 Orinda 23 26 Pleasant Hill 24 17 San Ramon 29 21 Walnut Creek 54 55 Unincorporated 16 34 Other (outside of service area) 1 1 TOTAL 386 373 The business was from our service area doing business outside of our service area. The business was charged normal CESQG Rates. 8-4 Table 8 -2 Small Business (CESQG) Program Summary Fiscal Year Number of Business Participants Number of New Business Participants Number of Appointments Estimated Pounds of Waste Processed Average Pounds of Waste per Appointment ppointment Revenue per Pound of Waste Revenue Collected 98/99 49 Not available 86 12,931 150 $ 0.72 $ 9,260 99/00 88 Not available 159 21,930 138 $ 0.80 $17,651 00/01 80 Not available 163 24,900 152 $ 0.84 $20,975 01/02 90 Base Year 191 30,542 160 $ 0.46 $14,094 02/03 111 80 226 38,046 168 $ 0.41 $15,561 03/04 108 59 216 41,298 191 $ 0.41 $16,907 04/05 107 50 226 39,608 175 $ 0.50 $19,884 05/06 128 55 252 40,841 162 $0.54 $22,054 06/07 161 94 373 81,777 219 $0.45 $37,008 07/08 191 104 386 59,966 155 $0.57 $34,324 * In March 2004, the District's Board added an Administration Fee of $20.00 per appointment to the existing charges. The Revenue Collected figure includes these fees. 8 -5 Table 8 -3 Small Business Program Participants *Companies in BOLD text are new to the program this year AC / Electric Bay Alarm Walnut Creek Pacheco Acalanes Unified High School District Moraga Acro Associates Concord Acura of Concord Concord All Custom Woodworks Concord Allegro Copy & Print Lafayette Altaquiud Concord American Electric San Ramon Applied Process Tech Pleasant Hill Aqua Pro Water Mgmt. Martinez Art-Gecko Creative Studio Pleasant Hill Asta General Electrical Work, Inc. Concord Auto Parts of Concord, Inc Concord Axiant Concord Aztec Consultants San Ramon :. Bay Cities Paving & Grading Concord Bayview Maintenance, Inc. Walnut Creek Bill's Ace Hardware Martinez BN Builders Walnut Creek BPR Health International Moraga Brendon Painting Concord Buchanan Field Airport Concord Building & Land Services (BLS) Concord Bureau of Alcohol, Tobacco, Explosives and Firearms — Walnut Creek Byron Park Retirement Walnut Creek C&M Investments Concord Cabinet Coats Martinez Calex Manufacturing Co., Inc Concord California Custom Painting San Ramon Cal Trans City of Orinda Walnut Creek Orinda CCC General Services Department City of Pleasant Hill Martinez Pleasant Hill CCC Health Services HM Program City of San Ramon Martinez San Ramon CCC Mosquito Vector Control City of Walnut Creek Concord Walnut Creek CCC Public Works City Painting Co. Martinez Pacheco CCC Sheriff Clayton Police Department Martinez Clayton CCC Sheriff Property Services Coldwell Banker Concord Orinda CCCC Transit Authority Community for Jewish Living Concord Danville CCCSD — CSO ConCar Industries Walnut Creek Concord CCCSD — LAB Concord Jet Service Martinez Concord CCCSD — POD Concord Support Services Martinez Concord Central Tune -up /Automotive Contra Costa 76 Walnut Creek Pleasant Hill Chestnut Ave. Community Church Contra Costa Electric Concord Martinez Chrichael, Inc., dba Townsend Painting Creative Woodworking Orinda Concord City of Concord D.K. Construction Concord Martinez City of Lafayette Dan's Camera & Graphics Lafayette Martinez City of Martinez David Collins Painting Martinez Orinda 8 -7 De La Salle High School Concord Denco Sales Concord Dennco Electric Service Danville Diablo Analytical Concord Diablo Country Club Diablo Diablo Marine & Trailer Service, Inc. Martinez Diablo Valley College Pleasant Hill Discovery House Pacheco Dome Lighting & Fan Concord East Bay Services Concord Eisenstaedt Landscaping Concord Elliott Halpern, DDS Pleasant Hill Enea Square Partners, L.P. Concord ETIC Engineering Pleasant Hill Fawn Painting Pleasant Hill Finishing Rooms Construction Clayton Fitzpatrick Chevrolet Concord :. Foster Wheeler Martinez Martinez G. Ferrabee Grading & Paving Company Martinez Giga - Tronics San Ramon Golden Gate Gymnastics Concord Guilkey Construction, Inc. Concord Habitat for Humanity Pacheco Heald College Concord Hospice of the East Bay Pleasant Hill Howard Properties - Pacheco, LLC Pacheco Ivory Tile Co. Concord James Kelso, DDS Walnut Creek James Roberts - Obayashi Danville Jerome Potozkin, MD Walnut Creek Jetalon Solutions, Inc Pleasant Hill JFC Construction Martinez JFH Corrosion Walnut Creek JFK University Pleasant Hill JMT Mechanical Concord Joe Darden Painting Concord John Muir Behavioral Health Concord John Muir Homes Martinez John Smick Lafayette Johnny George Painting & Decorating Concord Kelly Moore Paint — Brentwood Brentwood Kelly Moore Repair Center Concord Key's Condo Owners Association Walnut Creek Kinder Morgan Concord Lafayette Electric Lafayette Lafayette Orinda Presbyterian Church Lafayette Lafayette School District Lafayette Little Hills Ranch San Ramon Llama Electric Walnut Creek Maintenance Master Walnut Creek Marcott Electric Concord - Martinez Unified School District Martinez Maxim Services Pleasant Hill McCaulous Lafayette McPeak Electrical, Inc. Martinez Meher Schools, The Lafayette Mercury Compliance San Ramon Molina's Painting Martinez Moraga / Orinda Fire District Orinda Morison Ansa Holden Assuncao & Proughie — Walnut Creek Mount Diablo State Park Clayton Mt. View Sanitary District Martinez Nunes Ranch Martinez Oak Hill West Realty, LLC Lafayette Oak Park Christian Center Pleasant Hill Oncology Services Medical Group Danville Orinda 76 Orinda Orinda Preschool Orinda Orinda Union Schools San Ramon Valley Fire Protection District Orinda San Ramon Pacific Mechanical Corporation Sartorius Stedim Concord Concord Paint Company, The SecuriMetrics Pleasant Hill Martinez Pleasant Hill Parks & Recreation Self Storage of Walnut Creek Pleasant Hill Walnut Creek Power Communication Splicing Seven Hills School, The Concord Walnut Creek ProGrass Shadowood Owners Assoc. Walnut Creek Danville R &J Construction, Inc. Siemens Danville Concord R.A. Ferreira Siemens Energy & Automation Alamo Concord RCM Industries, Inc. Sierra Printing Concord Concord Re Serrano Spieker Stratmore Stanwell Martinez Concord Ridgecrest Builders St. Andrews Presbyterian Church Alamo Pleasant Hill Rosewood House St. Francis of Assisi Church Concord Concord Round Hill Country Club St. Mary's College Alamo Moraga RREEF Real Estate Straight Line Imports Walnut Creek Martinez Russell Bruzzone Subtronic Lafayette Concord San Damiano Retreat Summit Landscape Danville Martinez San Ramon Shell Sunset Tanning San Ramon Concord 8 -10 Tailored Building Services Well's Fargo Bank Concord Concord Tap Plastics White Magic Cleaning and Restoration Pleasant Hill Concord Technologies for Applied Wilcox & Co Instrumentation — Concord Walnut Creek Test America Wild Birds Unlimited Concord Pleasant Hill Townsend Painting William Wurschmidt, DDS Orinda Pacheco Toyota Walnut Creek Yarkin Walnut Creek Concord Tyris Corporation Zigenis & Sons Concord Orinda US Postal Service — Concord Concord Valley Waste Management Walnut Creek Ved -Co Martinez Verizon Wireless Walnut Creek W.J. Hess Construction Alamo Watson Electric Martinez Walnut Creek Ace Hardware Walnut Creek Walnut Creek Gasoline Walnut Creek Walnut Creek School District Walnut Creek Well's Fargo Bank Walnut Creek 8 -11 Section 9: Public Education/ Program Promotion PUBLIC EDUCATION /PROGRAM PROMOTION HHW program participation grew from 7.7 percent in fiscal year 1998 -99 to a sustained participation of approximately 12 percent during fiscal years 2003/04, 2004/05 and 2005/06. In fiscal year 2006/07 participation grew to 13.6 percent and in fiscal year 2007/08 participation grew again to 14.5 percent. This is mainly due to universal waste disposal requirements mentioned on page 1 -2. The HHW program has been regularly publicized in each issue of the District's Pipeline newsletter, which is direct mailed three times per year to all Central Contra Costa Sanitary District residents and businesses. Additionally, our assistant in sponsoring the facility, Mt. View Sanitary District, as well as the Central Contra Costa Solid Waste Authority and cities and organizations in the service area have used their newsletters to provide public education and promotion of the HHW program. With this promotional strategy, 16.2 percent of the total residential participants during fiscal year 2007/08 were first time customers, and the remaining 84 percent were repeat customers. The percentage of first -time customers reduced by about four percent compared to last year's percentage of first timers and the number of first time customer's decreased by 19 percent from fiscal year 2006/07. The HHW program is also promoted through displays staffed by CCCSD Communication Services staff at the annual Earth Day Fair and nearly a dozen environmental fairs sponsored by individual cities, Chambers of Commerce, and large corporations. Promotions Promotions for FY 2007 -08 include the distribution of HHW brochures and flyers to permit counters and information kiosks in all the client cities, additional newspaper advertising in targeted cities, and mailings planned for specific neighborhoods with historically low participation. A new outreach ad campaign for HHWCF used signage on grocery store shopping carts to remind consumers to bring their household hazardous waste to the HHWCF. The signage appears for six months on 40 percent of each stores' shopping carts. These mini - billboards appeared in approximately a dozen Safeway Supermarkets in nine of the 10 cities served by the HHWCF. The average weekly number of shoppers in the Orinda Safeway alone exceeds 15,000. 9 -1 The temporary HHW Collection Event was promoted using San Ramon Valley newspaper advertising and local newsletters. Publicity was limited to this region to ensure that all City of San Ramon residents requesting an appointment for HHW drop -off could be accommodated. The services of the permanent collection facility were included in each of the advertisements used to promote the temporary event. The HHW information line, which includes information about the permanent facility services on an on -going basis, was also used to promote the temporary collection event a few weeks prior to the event. The Conditionally Exempt Small Quantity Generator (Small Business) program is promoted through several publications and activities, as described below. Publications promoting the small business program: • Advertising in local chamber of commerce publications, including annually published city maps and Chambers of Commerce directories; • Advertising conducted by the Central Contra Costa Solid Waste Authority; • Advertising in local editions of the CC Times for targeted areas; • Articles and announcements in every CCCSD Pipeline newsletter Activities promoting the small business program: • Central Contra Costa Sanitary District and Mt. View Sanitary District web sites; • Six or more "environmental' fairs or business trade shows annually with a display focused to HHW; M • Promotion by Source Control Inspectors as they complete their field work auditing the operations of eligible small businesses; and • Word -of- mouth. Expanded promotion of the small business program during FY 2007/08 included: • Expanded pages on the District's redesigned website Planned promotion of the program for 2008/09 includes: • Advertising flyers inserted into monthly and bi- monthly Chambers of Commerce newsletters A new promotional campaign, PS — "Pollution Solutions," was designed for and launched at five Ace Hardware Stores — initially at four Bill's Ace Hardware Stores in Martinez, Pleasant Hill, and two in Concord, followed by the Walnut Creek Ace Hardware Store. The campaign consisted of store - specific signage, posters, shelf talkers, and flyers each noting the distance of the individual store to the HHWCF. Shelf talkers covered cleaning supplies, automotive products, batteries, fluorescent lamps and CFLs, paint and POLLUTION paint products. Each of the stores also received two battery drop -off buckets — five- gallon containers — for in -store collection. The stores also accept fluorescent lamps for final disposal at the HHWCF. We hope to duplicate the "PS" program in additional Ace Hardware stores in the service area during 2008 -09. HHW Collection facility tours are provided upon request. During the tour visitors are provided an HHWCF tour packet that contains an HHW fact sheet, Mercury Waste and Thermometer Exchange flyer, and other related items, which promote the HHW Program and related District pollution prevention programs. A common question asked of HHW staff by tour participants and customers dropping off wastes is: what happens to all of the waste collected? The graphic on the following page illustrates how HHW transported from the facility is managed. 9 -3 Since September of 1997, the HHWCF has collected and disposed of over 16 million pounds of hazardous waste generated in central Contra Costa County. To celebrate the 10th anniversary of the Household Hazardous Waste (HHW) Collection Facility, a highly visible billboard was used to advertise the celebration. The 14'X48' billboard is located near the Mt. View Sanitary District treatment plant along Interstate 680 in Martinez, one exit from the Benicia - Martinez Bridge. The Bridge connects Solano and Contra Costa counties, and has the third highest bridge traffic in the Bay Area. Caltrans and Clear Channel Inc. (the billboard owners) estimate that approximately 70,000 vehicles view the billboard each day driving north bound on 1 -680, with a total of close to two million vehicles during the posting period. 10 Years= 16 Million Pounds of Household Hazardous Waste Collected! HHW Collection Facility participated in MVSD's American Wetlands Celebration event on May 17, 2008 to educate the public about pollution prevention and proper disposal of household hazardous waste. The event was advertised on Contra Costa TV, Contra Costa Times, Comcast Newsmaker TV program, MVSD's Mt. View Monitor newsletter, and the websites of MVSD, US EPA, and partnering agencies. More than 25 state and local agencies, businesses and community groups participated in the event. Approximately 250 visitors attended the celebration. Michael Scahill, Communication Services Manager of Central Contra Costa Sanitary District at the Household Hazardous Collection Facility display table at the American Wetlands Month and MVSD 85th anniversary celebration. 9-4 Many products found in your home are potential - ly hazardous substances. They consist of chemi- cal compounds that can poison, corrode, explode, or ignite when handled improperly. When discarded, these substances are considered household hazardous waste (HHW) and can threaten human and environmental health. For this reason, it is illegal to dispose of HHW in the trash or down household and storm drains. That is why Central Contra Costa Sanitary District (CCCSD) and Mt. View Sanitary District (MVSD) established the HHW collec- tion facility to give local residents and small businesses a convenient and environmentally safe HHW disposal and recycling alternative. Martinez C to A • Pacheco 9 Concord Pleasant Hill • Clayton Walnut Creek Orinda Lafayette _ • Alamo �I * Moraga Da ville • San Ramon The collection facility services are paid for by members of the above communities as part of their sewer service charge. Partnership agreements between CCCSD, MVSD, Concord, Clayton, and San Ramon (for southern area) ensure that all central county residents have access to these services. Where Hou 0 Household Hazardous ftir, collavon Receiving Sorting `°`C5"`Ud"=I/ Bulking Testing Unlmmm 9 ■ car batteries ■ •lead • plastic • mercury ■ fluorescent - glass tubes • metal • phosphorous ■ propane * propane cyclinders • cyclinders • metal Reusable ra�R °�u �� ■ motor oil/ - oil HHW oil filters • metal IV% ■ antifreeze •antifreeze The Process as Shown Above Household hazardous waste (HHW) dropped off at CCCSD's collection facility gets sorted by trained technicians. Some of the HHW is dropped off in unlabeled containers and must be tested to determine its chemical properties. Products that arrive in their origi- nal container and are reusable are placed in our Reuse Room (see far right). Other HHW gets bulked or packed with compatible materials and is eventually transported to recycling treatment, incineration, or landfill facilities. Free products -4 ropellant provided to Storage ■ aerosols • metal the public g • product residues Treatment Townfmon~ incineration landfill ■ latex paint = • latex paint Reuse Room "Freebies" As part of our efforts to recy- cle as much as possible, the facility's Reuse Room pro- vides an outlet for products that are still in useable condition. These products are free to facil- ity users. Drop off your HHW at the collection facility, then check out the Reuse Room for free products you can use. 60056 -4/06 Section 10: Revenue and Expenses REVENUE AND EXPENSES The HHW Program expenses for fiscal year 2007/08 totaled $1,864,868, a 14 percent increase from fiscal year 2006/07. The increase in expenses can be attributed to increased operational costs such as fuel surcharges, waste disposal charges and material costs as well as increased contract staffing costs and participation. It is notable that four operating expense categories accounted for 81.8 percent of these expenses. The first of these categories was "Salaries, benefits and overhead" which, at $754,954, accounted for 41 percent of the total expenses. This is up from last year's total of $529,265 or 37 percent. The HHW program became fully staffed in June of 2008, as an additional HHW Technician was hired to reduce the reliance on contract staff to assist in operating the HHW Program. The next largest category was "Transportation and disposal" at $471,081 or 25 percent of total expenses. This shows an increase of 3.9 percent or 17,800 compared to fiscal year 2006/07. This increase can be attributed to the new HHW disposal services contract, which began in November of 2007. The new contract costs were expected to increase overall by $77,000 per year. The third category, "Professional, technical and legal services," at $196,603, represents 10.5 percent of total expenses, and primarily includes the cost of contract labor. This is a decrease of 9.1 percent or $18,072 over fiscal year 2006/07 expenses, as the need to supplement District staff reduced due to being fully staffed. "Materials and Supplies" at $102,377, accounted for 5.5 percent of total expenses. Like last fiscal year, the expense Amortization of Capital Expenditures was included in the total expenses. Amortization of Capital Expenditures is derived from the capital costs to build the collection facility and all capital improvements amortized over 30 years. Revenue for the HHW Collection Facility included payments from other jurisdictions under service agreements (Mt. View Sanitary District, City of Concord, City of Clayton and City of San Ramon), sale of recyclable material, and charges to small businesses under the CESQG program, and a portion of CCCSD's annual Sewer Service Charges. Figure 10 -1 shows the HHW Program participation and the expenses related to the Program for each of the 11 years of operation. Figure 10 -2 lists the estimated average cost per household for each year the HHW Program has been in operation. Table 10 presents a summary of revenue and expenses for the HHW Collection Facility. 10 -1 zpL,VVV,VW $1,800,000 $1,600,000 $1,400,000 $1,200,000 C a $1,000,000 X W $800,000 $600,000 $400,000 $200,000 $0 Figure 10 -1 Participation and Expenses 30,000 25,000 20,000 C T 01 15,000 A 10,000 rOy O 3 5,000 0 FY97/98 FY98/99 FY99 /00 FY00 /01 FY01 /02 FY02 /03 FY03 /04 FY04 /05 FY05 /06 FY06 /07 FY07 /08 * Beginning in FY2006/07, all costs calculations will include the cost of Amortization of Capital Expenditures, as this is part of the cost of operating the HHW Program. Figure 10 -2 HHW Program Estimated Cost per Household $10.00 — - 200,000 $9.00 195,000 $8.00 a., , Z p C t $7.00 H 190,000 $6.00 fD Z � L $5.00 185,000 �' C $4.00 t.7 $3.00' 180,000 G $2.00 A r r ? CL rn 175,000 $1.00 $0.00 170'000 97/98 1 98/99 1 99/00 1 00/01 1 01/02 02/03 03/04t 1 04/05 1 05/08 1 06/07 1 07/08 steer Household $5.08 1 $6.68 1 $7.08 1 $7.08 1 $7.65 1 $8.15 1 $8.00 1 $8.31 1 $8.99 1 $8.41 1 $9.70 d Households 178,286 1 179,190 1 178,715 1 183,738 1 184,619 1 185,641 1187,099 1 188,748 1 191,462 1 194,553 1 192,280 In FY07 /08 the number of households in the HHW service area was adjusted. The number of households in San Ramon was reduced by 1,029 homes and Mt. View Sanitary District (Martinez) was reduced by 2,054 homes. 10 -2 Table 10 Household Hazardous Waste Collection Facility 2007 / 2008 Summary of Revenue and Expenses Revenue CCCSD Sewer Service Charges: $ 1,244,136 Service Agreements with other jurisdictions: Mt. View Sanitary District $ 82,523 City of Concord $441,202 City of Clayton $ 38,361 City of San Ramon 52,225 $615,310 $ 615,310 Sale of collected materials and CESQG Charges: $ 34,150 _ Transfer portion of revenue to Self Insurance for Insurance Policy: ($ 28,766) TOTAL REVENUE $ 1,864,868 Expenses Salaries, benefits and overhead (HHW Staff) $ 754,954 Salaries & benefits (Source Control Staff) 0.00 Environmental liability premiums 88,729 Utilities 10,829 Repairs and maintenance 38,117 Transportation and disposal 471,081 Professional, technical and legal services 196,603 Materials and supplies 102,377 Other expenses 7,531 TOTAL OPERATING EXPENSES $ 1,670,220 Amortization of Capital Expenditures 194.648 TOTAL EXPENSES $ 1,864,868 10 -3 Appendix I: F303 Form Enter the number of pounds of material in the waste stream collected within the area into the cell corresponding to the program type used to collect the material. The spreadsheet will calculate the total amounts for you. Also enter the Instructions: estimated number of pounds of the collected material in the cell corresponding to the management method used to dispose or divert the material. Definitions of the "Management Methods" are presented in Title 14, 18751.2.1 (c). The spreadsheet will calculate the total pounds disposed or diverted for you. Note: Quantities reported under "Load Check" and other collection categories should not be double counted under "Permanent Facility." Pounds Collected by Program Type Paaania>yipat�atl119irar#lgt 11iNiod I ,per` /?11 ob, /Z11 l/l.. TZ, a it °a P ., 4/111 °�� ��� °` �• �� 08 a` � �• .��' moo' � a' �o€ a a� P° 8 �S ti e°` 3 b° �� a� �•� �`8 v� A 1- 1. Flammable and Poison Flammable solids / liquids 37,250 3,800 0 0 0 0 0 0 41,050 2,350 38,700 0 0 0 0 0 Bulked flammable liquids 103,950 0 0 0 0 0 0 0 103,950 0 103,950 0 0 0 0 0 Oil - base paints 294,400 7,200 0 0 0 0 0 0 301,600 0 301,600 0 0 0 0 0 Poisons 87,450 4,100 0 0 0 0 0 0 91,550 91,550 0 0 0 0 0 0 ` -.1` Reactive and ex losive 80 0 0 0 0 0 0 0 80 80 0 0 0 0 0 0 subtotal 523,130 15,100 0 0 0 0 0 0 538,230 93,979 444,250 0 0 0 0 0 538,230 2. Acid Inorganic and organic acid 14,815 600 0 0 0 0 0 0 15,415 0 0 0 15,415 0 0 0 iS 11 . Base Inorganic and organic base 15,250 1,350 0 0 0 0 0 0 16,600 0 0 0 16,600 0 0 0 T .Oxidizer Neutral oxidizers, Organic peroxides, Oxidizing acid, and lOxiclizing base 5,015 505 0 0 0 1 0 0 1 0 5,520 55 0 0 1 5,465 0 0 0 - 5 S. PCB - containin PCB - containing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other PCB waste (includes ballasts ) 2,800 0 0 0 1 0 0 0 0 2,800 2,800 0 0 0 0 0 0 subtotal 2,800 0 0 0 0 0 0 0 2,800 2,800 0 0 0 0 0 0 2,800 .Reclaimable Antifieeze 26,140 1 442 0 0 0 0 0 0 26,582 0 0 0 0 26,582 0 0 (12 Auto type batteries (motor vehicles 118,240 1,200 0 0 0 0 0 0 119,440 0 0 0 0 119,440 0 0 1191 Latex amt 495,350 10,450 0 0 0 0 0 0 505,800 0 149,600 45,650 0 310,550 0 0 2S P- Motor oil/oil 182,400 832 0 0 0 0 0 0 183,232 0 0 0 0 183,232 0 0 '.1. Used oil fliter (recyclables 8,000 400 0 0 0 0 0 0 8,400 0 0 0 0 8,400 0 0 subtotal 830,130 13,324 0 0 0 0 0 0 843,454 0 149,600 45,650 0 648,204 0 0 843,454 7. Asbestos Asbestos 5,400 0 0 0 0 0 0 0 5,400 0 0 5,400 0 0 0 0 S. Universal Waste Mercury containing automatic switches / thermometers / and novelties 17 5 O 0 0 0 0 0 22 O 0 0 0 22 O O it ass Memory contantng 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 1: Mercury containing waste other 93 0 0 0 0 0 0 0 93 0 0 0 0 93 0 0 Lamps 31,755 359 0 0 0 0 0 0 32,114 0 0 0 0 32,114 0 0 3' Rechargeable batteries 5,720 60 0 0 0 0 0 0 5.780 0 0 0 0 5,780 0 0 5..- Other batteries 37,870 720 0 0 0 0 0 0 38,590 0 0 0 0 38,590 0 0 subtotal 75,456 1,144 0 0 0 0 0 0 76,600 0 0 0 0 76,600 0 0 76 Electronic Waste Covered Elecaunic Devices 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Universal Waste Electronic Devices 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q cresol Containers Aerosol container 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 Other UW (mane) 0 0 I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LL all UW subtotal 75,456 1,144 0 0 0 0 0 0 76,600 0 I 0 0 0 76 600 0 0 76,600 • To be considered Universal Waste, all waste in this category except for batteries, most be managed by recycling. Energy recovery or fuel incineration is not considered recycling. If the waste cannot be managed by recycl it is not universal waste and must be managed as a hazardous waste. The co leted Dis osed/Divened Mana ement Methods section will show whether or not wastes were mane ed as a universal waste. . Other HHW Home - laminated sharps 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 I 0 Pharmaceutical Waste 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11 Compressed ps c linden 22,750 1,200 0 0 0 0 0 0 23,950 4,100 0 0 0 19,850 0 0 23 Treated wood 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Non - UW aerosol containers corrosive flammable 22,800 1 1,200 0 1 0 0 1 0 0 0 1 24,000 1 24,000 0 0 0 0 0 0 24 Other' Point Cart.' Lead 452 0 0 0 0 0 0 0 1 452 0 0 0 1 0 1 452 1 0 0 4 subtotal 46,002 1 2,400 0 0 0 1 0 1 0 1 0 1 48,402 28,100 1 0 1 0 0 20,302 1 0 0 48,402 2 Appendix II: CESQG Charges SCHEDULE OF HAZARDOUS WASTE HANDLING AND DISPOSAL CHARGES FOR CONDITIONALLY EXEMPT SMALL QUANTITY GENERATORS (Rev. date 11/5/99) Per I Per Per Per 1 Other Waste Category Example Waste Materials Pint Quart 1 Gallon 5 Gallon Unit (Packaging Method) 1 Container' C ontainerl Container' Container' Charges Antifreeze (Bulked) Uncontaminated for recycle $1.40 /gal Latex Paint (Bulked) 1 Latex based paints, stains j 9 $2.50/ al i Motor Oil (Bulked) i Uncontaminated for recycle $0.28/gal. I Aerosols Spray Paints $1.65 $3.30 1 Hazard Class 2 1 Insecticides (Loosepack) Aerosol Cleaners Flammable/ i Paint Related I Solvents $0.50 j $1.00 $3.40 $20.50 $2.50/gal. Combustible i Material: Oil-Based 1 Thinners Materials: Fuels Paint/Stains Blending Varnishes Hazard Class 3.0 (Loosepack) Adhesives Glues $0.50 $1.00 $3.75 $30.00 $2.50/gal. (Bulked option for some I Alcohol Ink/Toners wastes )2 Brush Wash 1 Polishes Diesel White Gas i Epoxy Resins i Methanol Gasoline/Fuels i Roof Tar Grease Sealers Corrosives, Oxidizers, Acetic Acid i Ferric Chloride $1.20 $2.40 1 $9.50 $47.50 Acids, Bases: Ammonia j Formic Acid Neutralization/ Citric Acid Hydrochloric Acid Treatment Corrosives Hydrofluoric Acid j Hazard Class B Potassium Hydroxide i Hypochlorite (Labpack) Sodium Hydroxide Caustics Vehicle Batteries 1 Unbroken /non leaking lead -acid batteries No (Not packaged) Charge _j I Per Per ! Per ( Per I Other Waste Category (Packaging Method) Example Waste Materials I ; Pint Container' Quart Container' 1 Gallon j , Container' i 5 Gallon Container' Unit Charges Poisons, Toxic Insecticides Herbicides $1.70 $3.40 $13.50 $67.50 JI' Materials: Pesticides f Toxic Lab Incineration Flammable Chemicals j Hazard Class 6, 3(6) Pesticides (Labpack) Contaminated Solids, Non -RCRA Hazardous Wastes $0.65 $1.30 $5.25 j $26.50 Other Hazardous Fertilizers Materials: Landfill Absorbents Hazard Class 9, Non -RCRA i (Labpack or Loosepack) Reactives Cyanides Sulfides ! $2.50 $20.00 $99.00 Hazard Class 4 Dangerous Bromine (Labpack) when wet Spontaneously combustible i Asbestos Double bagged friable asbestos j $120 per (Loosepack) wastes cubic yard j 1 Household Batteries Alkaline Nickel Cadmium ! $0.10 Hazard Class 8, 9 i Lithium Silver Oxide ! each (Loosepack) Oil Filters Automotive and truck/tractor filters $1.00 (Loosepack) each Vehicle Batteries 1 Unbroken /non leaking lead -acid batteries No (Not packaged) Charge _j I Per Per Per Per Other Waste Category Pint !: Quart 1 Gallon 5 Gallon Unit g rY Exam le Waste Materials , , (Packaging Method) j p ^� Container Container j Container Containers Charges Fluorescent Tubes j $0.15/ft. (Loosepack) Propane Cylinders 15 gallon "BBQ" style $5.00 (Loosepack) i Propane Cylinders (Loosepack) Smaller than 5 gallon cylinders $1.40 $2.75 j $11.00 i j t i Prices are based on container size regardless of how full; containers of other than the specified sizes will be charged at an interpolated or prorated price. 2 This rate will be available when the bulking of flammable liquids can be performed at the facility. Flammable liquids that cannot be bulked will be charged the rate based on the container size. Note: Each CESQG shall be charged an Administration Fee of $20.00 for each drop off in addition to the above handling and disposal charges. (Ord. 229 Exh. A (part), 2004: Ord. 212 § 1 Exh. A, 1999: Ord. 206 Exh. A, 1998) Agenda Item 7.a.3) Board Meeting of December 4, 2008 Written Announcements: Events a) Annual HHWCF Report Presentation to Mountain View Sanitary District (MVSD) Board of Directors Staff will present the Annual Household Hazardous Waste Collection Facility Report to the Mountain View Sanitary District Board of Directors on Thursday, December 11, 2008 at 6:30 p.m. MVSD is located at 3800 Arthur Road in Martinez. Contact Secretary of the District Elaine Boehme if you would like to attend. b) Employee Activities Organization Annual Holiday Part y The annual holiday party will be held on Friday, December 12, 2008 from 1 p.m. to 3 p.m. at Back Forty BBQ located at 100 Coggins Drive in Pleasant Hill. There will be a catered buffet provided. Contact Secretary of the District Elaine Boehme if you would like to attend. General Updates /Project Updates c) Surveying Services by BKF Engineers Assistant Land Surveyor Tom Phillips was seriously injured in a non -work related vehicular accident and is expected to be off work for an extended period of time. On March 20, 2008, the Board authorized a contract in an amount of $525,000 to BKF Engineers to provide surveying services for District Project 5967, A -Line Easement Acquisition. BKF was selected through a competitive process for this work, and has excellent survey staff and credentials. Because surveying services are urgently needed for the design of the collection system projects such that they will be ready for bidding in the spring, Staff has authorized BKF Engineers to proceed with data acquisition for some of these collection system projects to augment our own survey staff while Tom Philips is not available. Staff will be assessing the amount of survey assistance needed in the coming months and will come back to the Board with a position paper if the work needed exceeds the 15% staff authority for increasing BKF's consultant contract. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 4, 2008 No.: g.a. Engineering Type of Action: ADOPT RESOLUTIONS subject: ADOPT RESOLUTIONS ACCEPTING GRANTS OF EASEMENTS (DISTRICT PROJECT 5968 — PARCELS 1 THROUGH 23 *) AND AUTHORIZING EXECUTION OF QUITCLAIM DEEDS (DISTRICT PROJECT 1572 — VARIOUS PARCELS *) TO PROPERTY OWNERS IN THE TARRY LANE/VAN TASSEL LANE NEIGHBORHOOD, ORINDA Submitted By: Initiating Dept /Div.: Molly Mullin, Engineering /Environmental Services Senior Right of Way Agent REVIEWED AND RECOMMENDED FOR BOARD ACTION: &k� M. Mullin C. Swanson A. Farrell K. Alm James V. Kelly, Genera anager ISSUE: A resolution of the Board of Directors is required to accept or quitclaim easements and to record the documents. RECOMMENDATION: Adopt resolutions accepting grants of easements and authorizing execution of quitclaim deeds and authorizing staff to record the documents with the Contra Costa County Recorder. FINANCIAL IMPACTS: $196,459 was paid for permanent easement exchanges (grant of new easements and quitclaim of old easements) for this project. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The District replaced approximately 3,700 feet of 6- and 8 -inch sewers, parallel to Tarry Creek, within backyard easements of residential properties located in the Tarry Lane/Van Tassel Lane neighborhood in Orinda (refer to Attachment 1 for location map) as part of the North Orinda Sewer Renovations Project Phase 2.1 (District Project 5968). This project realigned the sewer (removed /abandoned existing pipe and installed new pipe outside limits of existing backyard easements). Benefits of new sewer alignment are: 1) mitigated construction work around environmentally sensitive areas along the creek; 2) resolved substantive encroachments within existing sewer easements; and 3) improves maintenance access. The quitclaim deeds will extinguish CCCSD's existing easements for sewers no longer in service and the new grants of easements (refer to Attachment 2 for list of property owners) will provide the District with recorded land rights for the asbuilt location of the new sewers. The majority of the new easements are wider than the existing N: \ENVRSEC \Position Pape rs \Mullin\2008 \PP N Orinda 2.1 Overall Project Position Paper - Rev. 12- 4- 08.doc Page 1 of 2 POSITION PAPER Board Meeting Date: December 4, 2008 subject: ADOPT RESOLUTIONS ACCEPTING GRANTS OF EASEMENTS (DISTRICT PROJECT 5968 — PARCELS 1 THROUGH 23 *) AND AUTHORIZING EXECUTION OF QUITCLAIM DEEDS (DISTRICT PROJECT 1572 —VARIOUS PARCELS *) TO PROPERTY OWNERS IN THE TARRY LANENAN TASSEL LANE NEIGHBORHOOD, ORINDA easements. This additional easement width will improve access for future maintenance and construction work and will assist to minimize future encroachments and damages to our sewer facilities. Previously, complying with District and Contra Costa Recorder's Office procedures would have required twenty -three separate position papers and forty -six resolutions to process and record the easement acceptance and quitclaim documents. In recent months, however, District and Recorder's Office staff took the initiative to work together critically reviewing and modifying these procedures to create a more efficient, streamlined process. RECOMMENDED BOARD ACTION: Adopt resolutions accepting grants of easements and authorizing the President of the Board of the Directors and the Secretary of the District to execute Quitclaim Deeds to property owners in the Tarry Lane/Van Tassel Lane neighborhood, and authorizing staff to record the documents with the Contra Costa County Recorder. *Easement parcel numbers are for internal job log use only. N: \ENVRSEC \Position Papers \Mullin\2008 \PP N Orinda 2.1 Overall Project Position Paper - Rev. 12- 4- 08.doc Page 2 of 2 do Pl eZO 0 2000 4000 FEET Ly 7� a � D 9 � < M M r SITE 24 Central Contra Costa Sanitary District Attachment TARRY LANE /VAN TASSEL LANE V d3l NEIGHBORHOOD � ATTACHMENT 2 LIST OF PROPERTY OWNERS(') TARRY LANE/VAN TASSEL LANE NEIGHBORHOOD, ORINDA Assessor's Parcel No.: 266- 170 -020 Property Owner(s): Joseph S. and Marion C. Cleary Site Address: 94 Tarry Lane, Orinda, CA 94563 Assessor's Parcel No. Property Owner(s): Site Address: Assessor's Parcel No Property Owner(s): Site Address: 266- 170 -031 Brent and Courtney Bamberger 88 Tarry Lane, Orinda, CA 94563 266- 170 -030 William E. and Nancy M. Kolmodin 84 Tarry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 170 -017 Property Owner(s): Mark and Janice Presten Site Address: 80 Tarry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 170 -016 Property Owner(s): The Nicolet Family Trust Site Address: 76 Tarry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 160 -017 Property Owner(s): Ryan Arthur Harrison and Sally Park Site Address: 1 Snowberry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 160 -016 Property Owner(s): Susan Wong and Michael L. Pejza Site Address: 5 Snowberry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 160 -015 Property Owner(s): Martin R. and Linda A. Lewis Site Address: 7 Snowberry Lane, Orinda, CA 94563 (1) Names of owners at the time grants of easements were signed. Quitclaim deeds will be conveyed to current owners. N: \ENVRSEC \Position PapersNullin\2008\Attachment 2 - Property Owners (N. Orinda 2.1) 12- 4- 08.doc Attachment 2 List of Property Owners Tarry LaneNan Tassel Lane, Orinda Page 2of3 Assessor's Parcel No.: 266- 150 -018 Property Owner(s): The Rubey Family Trust Site Address: 11 Snowberry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 150 -024 Property Owner(s): The Bess C. Greenlaw Revocable Living Trust Site Address: 21 Snowberry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 150 -015 Property Owner(s): The Sara M. Grossman Revocable Living Trust Site Address: 25 Snowberry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 150 -007 Property Owner(s): Robert K. Harrigan Site Address: 48 Tarry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 150 -026 Property Owner(s): The Lloyd Trust Site Address: 46 Tarry Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 150 -021 Property Owner(s): The Shapiro Family Revocable Trust Site Address: 15 Van Tassel Lane, Orinda, CA 94563 Assessor's Parcel No.: 266- 150 -020 Property Owner(s): The Azevedo Revocable Inter Vivos Trust Site Address: 21 Van Tassel Lane, Orinda, CA 94563 Assessor's Parcel No. Property Owner(s): Site Address: Assessor's Parcel No. Property Owner(s): Site Address: 266- 150 -019 James J. and Catherine G. Farrell 25 Van Tassel Lane, Orinda, CA 94563 266- 160 -012 The Sharon K. Palmer Trust 14 Katrina Court, Orinda, CA 94563 NAENVRSEMPosition Papers \Mu Ili n\2008\Httachment 2 - Property Owners (N. Orinda 2.1) 12- 4- 08.doc Attachment 2 List of Property Owners Tarry LaneNan Tassel Lane, Orinda Page 3 of 3 Assessor's Parcel No.: 266- 160 -011 Property Owner(s): The Scan lan- Striglos Trust Site Address: 10 Katrina Court, Orinda, CA 94563 Assessor's Parcel No.: 266- 160 -028 Property Owner(s): The Davis Revocable Trust Site Address: 6 Crane Court, Orinda, CA 94563 Assessor's Parcel No.: 266- 170 -032 Property Owner(s): Thomas H. Melohn, Jr.; Susan M. Hoover; Laura M. Emerson; and Sara M. Donaldson Site Address: 11 Crane Court, Orinda, CA 94563 Assessor's Parcel No.: Property Owner(s): Site Address: Assessor's Parcel No Property Owner(s): Site Address: 266- 170 -028 The Ross Revocable Trust 9 Crane Court, Orinda, CA 94563 266- 170 -027 Matthew H. and Teresa B. Walker 3 Crane Court, Orinda, CA 94563 Assessor's Parcel No.: 266- 170 -024 Property Owner(s): An -Ching Chang and Chi -Fang Chiang Site Address: 65 Van Tassel Lane, Orinda, CA 94563 N: \ENVRSEC \Position Papers \Mu Ili n\2008Wttachment 2 - Property Owners (N. Orinda 2.1) 12- 4- 08.doc RESOLUTION NO. 2008 - A RESOLUTION ACCEPTING GRANTS OF EASEMENTS FROM THE PROPERTY OWNERS OF THE TARRY LANE/VAN TASSEL LANE NEIGHBORHOOD, ORINDA DISTRICT PROJECT 5968 — PARCELS 1 THROUGH 23 BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District ( "District ") as follows: THAT the District hereby accepts Grants of Easements (Sewer Purposes) from the property owners of the Tarry Lane/Van Tassel Lane Neighborhood, Orinda, as listed in Exhibit "A" hereto, District Project 5968 — Parcels 1 through 23; and THAT staff is authorized to record said documents in the Office of the Recorder of Contra Costa County. PASSED AND ADOPTED this 4th day of December 2008, by the Board of Directors of the 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 RESOLUTION NO. 2008 — EXHIBIT "A" LIST OF PROPERTY OWNERS GRANTS OF EASEMENTS (SEWER PURPOSES) TARRY LANE/VAN TASSEL LANE NEIGHBORHOOD, ORINDA Parcel 1 Assessor's Parcel No.: 266- 170 -020 Property Owner(s): Joseph S. and Marion C. Cleary Site Address: 94 Tarry Lane, Orinda, CA 94563 Parcel 2 Assessor's Parcel No.: 266- 170 -031 Property Owner(s): Brent and Courtney Bamberger Site Address: 88 Tarry Lane, Orinda, CA 94563 Parcel 3 Assessor's Parcel No.: 266- 170 -030 Property Owner(s): William E. and Nancy M. Kolmodin Site Address: 84 Tarry Lane, Orinda, CA 94563 Parcel 4 Assessor's Parcel No.: 266- 170 -017 Property Owner(s): Mark and Janice Presten Site Address: 80 Tarry Lane, Orinda, CA 94563 Parcel 5 Assessor's Parcel No.: 266- 170 -016 Property Owner(s): The Nicolet Family Trust Site Address: 76 Tarry Lane, Orinda, CA 94563 Parcel 6 Assessor's Parcel No.: 266- 160 -017 Property Owner(s): Ryan Arthur Harrison and Sally Park Site Address: 1 Snowberry Lane, Orinda, CA 94563 Parcel 7 Assessor's Parcel No.: 266- 160 -016 Property Owner(s): Susan Wong and Michael L. Pejza Site Address: 5 Snowberry Lane, Orinda, CA 94563 N: \ENVRSEC \Position Papers \Mullin\2008 \Exhibit A- Property Owners (GOEs) PP N. Orinda 2.1 - Rev. for 12- 4- 08.doc Resolution 2008 - Exhibit A - GOE List of Property Owners Tarry Lane/Van Tassel Lane, Orinda Page 2 of 3 Parcel 8 Assessor's Parcel No.: 266- 160 -015 Property Owner(s): Martin R. and Linda A. Lewis Site Address: 7 Snowberry Lane, Orinda, CA 94563 Parcel 9 Assessor's Parcel No.: 266- 150 -018 Property Owner(s): The Rubey Family Trust Site Address: 11 Snowberry Lane, Orinda, CA 94563 Parcel 10 Assessor's Parcel No.: 266- 150 -024 Property Owner(s): The Bess C. Greenlaw Revocable Living Trust Site Address: 21 Snowberry Lane, Orinda, CA 94563 Parcel 11 Assessor's Parcel No.: 266- 150 -015 Property Owner(s): The Sara M. Grossman Revocable Living Trust Site Address: 25 Snowberry Lane, Orinda, CA 94563 Parcel 12 Assessor's Parcel No.: 266- 150 -007 Property Owner(s): Robert K. Harrigan Site Address: 48 Tarry Lane, Orinda, CA 94563 Parcel 13 Assessor's Parcel No.: 266- 150 -026 Property Owner(s): The Lloyd Trust Site Address: 46 Tarry Lane, Orinda, CA 94563 Parcel 14 Assessor's Parcel No.: 266- 150 -021 Property Owner(s): The Shapiro Family Revocable Trust Site Address: 15 Van Tassel Lane, Orinda, CA 94563 Parcel 15 Assessor's Parcel No.: 266- 150 -020 Property Owner(s): The Azevedo Revocable Inter Vivos Trust Site Address: 21 Van Tassel Lane, Orinda, CA 94563 Parcel 16 Assessor's Parcel No.: 266- 150 -019 Property Owner(s): James J. and Catherine G. Farrell Site Address: 25 Van Tassel Lane, Orinda, CA 94563 N: \ENVRSEC \Position PapersWullin\2008 \Exhibit A- Property Owners (GOEs) PP N. Orinda 2.1 - Rev. for 12- 4- 08.doc Resolution 2008- Exhibit A - GOE List of Property Owners Tarry Lane/Van Tassel Lane, Orinda Page 3 of 3 Parcel 17 Assessor's Parcel No.: 266- 160 -012 Property Owner(s): The Sharon K. Palmer Trust Site Address: 14 Katrina Court, Orinda, CA 94563 Parcel 18 Assessor's Parcel No.: 266- 160 -011 Property Owner(s): Paul M. Scanlan and Patricia E. Striglos Site Address: 10 Katrina Court, Orinda, CA 94563 Parcel 19 Assessor's Parcel No.: 266- 160 -028 Property Owner(s): The Davis Revocable Trust Site Address: 6 Crane Court, Orinda, CA 94563 Parcel 20 Assessor's Parcel No.: Property Owner(s): Site Address: Parcel 21 Assessor's Parcel No. Property Owner(s): Site Address: Parcel 22 Assessor's Parcel No.: Property Owner(s): Site Address: Parcel 23 Assessor's Parcel No.: Property Owner(s): Site Address: 266- 170 -032 Thomas H. Melohn, Jr.; Susan M. Hoover; Laura M. Emerson; and Sara M. Donaldson 11 Crane Court, Orinda, CA 94563 266- 170 -028 The Ross Revocable Trust 9 Crane Court, Orinda, CA 94563 266- 170 -027 Matthew H. and Teresa B. Walker 3 Crane Court, Orinda, CA 94563 266- 170 -024 An -Ching Chang and Chi -Fang Chiang 65 Van Tassel Lane, Orinda, CA 94563 N: \ENVRSEC \Position PapersWlullin\2008 \Exhibit A- Property Owners (GOES) PP N. Orinda 2.1 - Rev. for 12- 4- 08.doc RESOLUTION NO. 2008 - A RESOLUTION AUTHORIZING EXECUTION OF QUITCLAIM DEEDS TO PROPERTY OWNERS OF THE TARRY LANE/VAN TASSEL NEIGHBORHOOD, ORINDA DISTRICT PROJECT 1572 — VARIOUS PARCELS BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District ( "District ") as follows: THAT the District hereby consents to the execution of Quitclaim Deeds, dated December 4, 2008, to the property owners in the Tarry Lane/Van Tassel Lane Neighborhood, Orinda, as listed in Exhibit "A" hereto, District Project 1572 —Various Parcels; and THAT staff is authorized to record said documents in the office of the Recorder of Contra Costa County. PASSED AND ADOPTED this 4th day of December 2008, by the Board of Directors of the 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 RESOLUTION NO. 2008 — EXHIBIT "A" LIST OF PROPERTY OWNERS QUITCLAIM DEEDS - EASEMENTS TARRY LANENAN TASSEL LANE NEIGHBORHOOD, ORINDA Parcel 38 Assessor's Parcel No.: 266- 170 -020 Property Owner(s): Joseph S. and Marion C. Cleary Site Address: 94 Tarry Lane, Orinda, CA 94563 Parcel 41 Assessor's Parcel No.: 266- 170 -031 Property Owner(s): Brent and Courtney Bamberger Site Address: 88 Tarry Lane, Orinda, CA 94563 Parcel 42 Assessor's Parcel No.: 266- 170 -030 Property Owner(s): William E. and Nancy M. Kolmodin Site Address: 84 Tarry Lane, Orinda, CA 94563 Parcel 43 Assessor's Parcel No.: 266- 170 -017 Property Owner(s): Mark and Janice Presten Site Address: 80 Tarry Lane, Orinda, CA 94563 Parcel 44 Assessor's Parcel No.: 266- 170 -016 Property Owner(s): The Nicolet Family Trust Site Address: 76 Tarry Lane, Orinda, CA 94563 Parcel 45 Assessor's Parcel No.: 266- 160 -017 Property Owner(s): Ryan Arthur Harrison and Sally Park Site Address: 1 Snowberry Lane, Orinda, CA 94563 Parcel 46 Assessor's Parcel No.: 266- 160 -016 Property Owner(s): Susan Wong and Michael L. Pejza Site Address: 5 Snowberry Lane, Orinda, CA 94563 N: \ENVRSEC \Position Papers \Mullin\2008 \Exhibit A- Property Owners (QC deeds) PP N. Orinda 2.1 -Rev. for 12- 4- 08.doc Resolution No. 2008 — Exhibit A — Quitclaim Deeds List of Property Owners Tarry LaneNan Tassel Lane, Orinda Page 2 of 3 Parcel 47 Assessor's Parcel No.: 266- 160 -015 Property Owner(s): Martin R. and Linda A. Lewis Site Address: 7 Snowberry Lane, Orinda, CA 94563 Parcel 48 Assessor's Parcel No.: 266- 150 -018 Property Owner(s): The Rubey Family Trust Site Address: 11 Snowberry Lane, Orinda, CA 94563 Parcel 50 Assessor's Parcel No.: 266- 150 -024 Property Owner(s): The Westphal Family Trust Site Address: 21 Snowberry Lane, Orinda, CA 94563 Parcel 51 Assessor's Parcel No.: 266- 150 -015 Property Owner(s): The Sara M. Grossman Revocable Living Trust Site Address: 25 Snowberry Lane, Orinda, CA 94563 Parcel 55 Assessor's Parcel No.: 266- 150 -021 Property Owner(s): The Shapiro Family Revocable Trust Site Address: 15 Van Tassel Lane, Orinda, CA 94563 Parcel 56 Assessor's Parcel No.: Property Owner(s): Site Address: Parcel 57 Assessor's Parcel No.: Property Owner(s): Site Address: Parcel 58 Assessor's Parcel No.: Property Owner(s): Site Address: 266- 150 -020 The Azevedo Revocable Inter Vivos Trust 21 Van Tassel Lane, Orinda, CA 94563 266- 150 -007 Robert K. Harrigan 48 Tarry Lane, Orinda, CA 94563 266- 150 -026 The Lloyd Trust 46 Tarry Lane, Orinda, CA 94563 N: \ENVRSEC \Position PapersWullin\2008 \Exhibit A- Property Owners (QC deeds) PP N. Orinda 2.1 -Rev. for 12- 4- 08.doc Rev. Resolution No. 2008 — Exhibit A — Quitclaim Deeds List of Property Owners Tarry Lane/Van Tassel Lane, Orinda Page 3 of 3 Parcel 71 Assessor's Parcel No.: 266- 170 -024 Property Owner(s): An -Ching Chang and Chi -Fang Chiang Site Address: 65 Van Tassel Lane, Orinda, CA 94563 Parcel 72 Assessor's Parcel No.: 266- 170 -027 Property Owner(s): Matthew H. and Teresa B. Walker Site Address: 3 Crane Court, Orinda, CA 94563 Parcel 96 Assessor's Parcel No.: 266- 170 -028 Property Owner(s): The Ross Revocable Trust Site Address: 9 Crane Court, Orinda, CA 94563 Parcel 97 Assessor's Parcel No.: 266- 170 -032 Property Owner(s): Thomas H. Melohn, Jr.; Laura M. Emerson, and Sara M. Donaldson Site Address: 11 Crane Court, Orinda, CA 94563 Parcel 98 Assessor's Parcel No.: 266- 160 -028 Property Owner(s): The Davis Revocable Trust Site Address: 6 Crane Court, Orinda, CA 94563 Parcel 109 Assessor's Parcel No.: 266- 150 -019 Property Owner(s): James J. and Catherine G. Farrell Site Address: 25 Van Tassel Lane, Orinda, CA 94563 Parcel 110 Assessor's Parcel No.: 266- 160 -012 Property Owner(s): The Sharon K. Palmer- George Trust Site Address: 14 Katrina Court, Orinda, CA 94563 Parcel 111 Assessor's Parcel No.: 266- 160 -011 Property Owner(s): The Scan lan- Striglos Revocable Trust Site Address: 10 Katrina Court, Orinda, CA 94563 N: \ENVRSEC \Position Pape rs\Mu Ili n\2008\Exhibit A- Property Owners (QC deeds) PP N. Orinda 2.1 -Rev. for 12- 4- 08.doc Rev. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 4, 2008 No.: 9.a. Budget and Finance Type of Action: APPROVE FINANCIAL REPORT subject: APPROVE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AS OF JUNE 30, 2008 FOR SUBMISSION TO THE GOVERNMENT FINANCE OFFICERS ASSOCIATION. Submitted By: Debbie Ratcliff, Controller Initiating Dept. /Div.: Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. RatoW R. Musgraves l ames M. Ke , General Manager ISSUE: Board approval is requested to submit a Comprehensive Annual Financial Report (CAFR) to the Government Finance Officers Association of United States and Canada (GFOA) for review. RECOMMENDATION: Review and approve the June 30, 2008 CAFR for GFOA submission. FINANCIAL IMPACTS: There is an application fee for submission of a CAFR for review based on total revenues of the entity applying. The District fee is $480 based on this sliding fee schedule. ALTERNATIVES /CONSIDERATIONS: None for the current year. BACKGROUND: The GFOA is a professional association of state /provincial and local finance officers in the United States and Canada, and has served the public finance profession since 1906. The association's members are dedicated to the sound management of government financial resources and the GFOA provides input to the Governmental Accounting Standards Board (GASB). The GFOA sponsors the Certificate of Achievement for Excellence in Financial Reporting Program. The Finance and Accounting Division has prepared the District's CAFR as of June 30, 2008. The District was awarded a Certificate of Achievement for Excellence in Financial Reporting by the GFOA for reports submitted for the 2000 -2007 fiscal years. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. The CAFR includes ten years of historical financial and statistical data. This report must satisfy both generally accepted accounting principles and applicable legal requirements. NAADMINSUP\ADMIN \POSPAPER \CAFR 12- 04- 08.doc Page 1 of 2 POSITION PAPER Board Meeting Date: December 4, 2008 subject. APPROVE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AS OF JUNE 30, 2008 FOR SUBMISSION TO THE GOVERNMENT FINANCE OFFICERS ASSOCIATION. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are asking approval to submit it to the GFOA to determine its eligibility for another certificate. The Board Finance Committee reviewed a draft of the June 30, 2008 CAFR in detail on November 17, 2008 and had no recommended changes. RECOMMENDED BOARD ACTION: Approve the CAFR for submission to the GFOA. NAADMINSMADMINTOSPAPEMCAFR 12- 04- 08.doc Page 2 of 2 Agenda Item 7.a.3) Board Meeting of December 4, 2008 Additional Written Announcements: Events d) Delta Diablo Sanitation District Radio Broadcast Delta Diablo Sanitation District has contracted with KCBS -AM Radio for a three -week campaign against F.O.G. (Fats, Oils and Grease) consisting of a one - minute commercial. The commercial will be broadcast twenty times per week at a total cost of $24,000 ($400 per minute). The campaign began last week and will end at the end of next week. A banner ad will also run on the KCBS website for the duration of the ad campaign. The commercial reminds listeners not to pour F.O. G. down the drain and to bring used cooking oil in a sealed container to the Delta Household Hazardous Waste Collection Facility. The spot ends by stating "For more information on how to end FOG, call 925 - 756 -1900 or go to DDSD.org. Only East County residents are eligible for this service." %svmprenensirE annual Financle Dannpt S P pw 4 i \4r ji. if v t � r ): �e'� �►. of �. ���r11i �+a:... . .....;:. ± •mom^ 6. ,a ���if: � CENTRAL CONTRA COSTA SANITARY DISTRICT MARTI N EZ, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2008 Prepared By: Finance & Accounting Division CENTRAL CONTRA COSTA SANITARY DISTRICT Comprehensive Annual Financial Report Table of Contents For the Year Ended June 30, 2008 - INTRODUCTORY SECTION: Letterof Transmittal ................................................................ ............................... i Boardof Directors ..................................... ............................... ............................vii Mission Statement " .................................... ............................... ........................... viii OrganizationChart .................................................................. .............................ix Mapof Service Area .............................................................. ............................... x _ Certificate of Achievement ...................................................... ..............................A FINANCIAL SECTION: Independent Auditors' Report ................................................ ............................... 1 Management's Discussion and Analysis ............................... ............................... 2 Basic Financial Statements Statement of Net Assets ............................................. ............................... 7 Statement of Revenues, Expenses and Changes in Net Assets ............... 8 Statement of Cash Flows ............................................ ............................... 9 Notes to Financial Statements — The accompanying notes are an integral part of the basic financial statements ...................... ............................... 10 Supplementary Information Combining Schedule of Statement of Net Assets ..... ............................... 29 Combining Schedule of Statement of Revenues, Expenses and Changes in Net Assets ........................................... ............................... 30 Schedule of Running Expenses - Comparison of Budget and Actual Expensesby Department ........................................ ............................... 31 Running Expense - Schedule of Supplemental Net Assets Analysis ....... 32 STATISTICAL SECTION (Unaudited): Changes in Net Assets and Statement of Net Assets - - Last Six Fiscal Years ....................................................... ............................... S -1 Revenue by Type - Last Ten Fiscal Years ............................. ............................S -2 Operating Expenses by Type - Last Ten Fiscal Years ........... ............................S -3 Major Revenue Base and Rates - Historical and Current Fees - LastTen Fiscal Years ...................................................... ............................... S -4 Sewer Service Charge - List of Ten Largest Customers - LastSix Fiscal Years .......................................................... ............................S -5 Assessed and Estimated Actual Valuation of Taxable Property - LastTen Fiscal Years ...................................................... ............................... S -6 Property Tax and Sewer Service Charge Fees Levied and Collected - Last Ten Fiscal Years ...................................................... ............................... S -6 Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio - Last Ten Fiscal Years ........ ............................................... ............................... S -7 Demographic and Economic Data - Population Served - Last Ten Calendar Years .................................................... ............................S -8 List of Ten Largest Employers in Contra Costa County - Last Year and Nine Years Ago ........................................... ............................S -8 Demographic and Economic Statistics - Contra Costa County - Last Ten Fiscal Years ...................................................... ............................... S -9 Full -time Equivalent Employees by Department - Last Ten Fiscal Years ........S -10 Number of Retirees and Surviving Spouses - Last Ten Fiscal Years ..............S -10 Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ... S -11 Miscellaneous Statistics ....................................................... ...........................S -11 Central Contra Costa Sanitary District - Introductory l Section JMCI Jl Central Contra Costa Sanitanr District 5019 Imhoff Place, Martinez, CA 94553 -4392 (925) 228-9500 - www.centialsan.org November 13, 2008 Central Contra Costa Sanitary District Ratepayers and The Honorable Board of Directors, Martinez, California: State law requires that every general - purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended June 30, 2008. Management of Central Contra Costa Sanitary District assumes full responsibility for the completeness and reliability of the information in these financial statements, based upon a comprehensive system of internal controls that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Cropper Accountancy Corporation has issued an unqualified ( "clean ") opinion on the Central Contra Costa Sanitary District's financial statements for the year ended June 30, 2008. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis report (MD &A) immediately follows the - independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD &A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE GOVERNMENT History and Services Provided The District was established in 1946 under the Sanitary District Act of 1923 and is located about 30 miles east of San Francisco. The District builds, operates and maintains the facilities required to collect and process wastewater for approximately 317,000 residents of Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San Ramon., Walnut Creek and some of the unincorporated communities within Central Contra Costa County. The District also treats wastewater for 135,000 residents of the Cities of Concord and Clayton under a 1974 contract with the City of Concord. i, Recycled Paper The District is committed to protecting the public health and preserving the environment while minimizing facility and operating costs. The District has approximately 1,500 miles of sewer pipeline, ranging in size from 6 inches to 120 inches in diameter, and 18 sewage - pumping stations in the District's sewage collection system. The District is the sole provider of wastewater service within the District limits (see map of service area). Residents make up the largest segment of the District's customer base representing approximately 80% of the Sewer Service Charge revenue. The District's treatment capacity has grown from 4.5 million gallons per day (mgd) initiated in 1948 to 53.8 mgd currently. Bonds, state grants, federal grants, and pay -as- you -go resources of the District have financed expansions. The District also provides an alternative source of water for irrigation by producing high quality recycled water. Recycled water can safely be used on freeway landscaping, street medians, golf courses, athletic fields, parks, playgrounds, schoolyards and multi- family residential common areas. In addition to its wastewater responsibility, the District also teamed with Mountain View Sanitary District and other local governments to build and operate the first permanent Household Hazardous Waste (HHW) Collection Facility in Contra Costa County. The HHW Collection Facility is located adjacent to the District's wastewater treatment plant and seeks to keep pollutants out of the sewer system, making this facility an important part of our Pollution Prevention Program. Organization, Accounting and Budgetary Controls A 5- member Board of Directors governs the District. Board members are elected on a non - partisan basis and serve a four -year term. The Board appoints the General Manager, who in accordance with policies established by the Board of Directors, manages District affairs. The District employs 259 regular employees organized in four departments led by Department Directors responsible for their budgets and expenses. The four departments are: Administrative, Engineering, Operations, and Collection Systems. The District uses an enterprise fund to account for the operations of the District, which is run in a manner similar to private industry. The District currently has one enterprise fund which is comprised of four internal sub - funds: Running Expense - accounts for the general operations of the District. Substantially all operating revenues and expenses are accounted for in this fund (also referred to as Operations & Maintenance or O &M). Sewer Construction - accounts for non - operating revenues that are to be used for acquisition or construction of plant, property, and equipment (also referred to as the Capital Fund). Self- Insurance - accounts for interest earnings on cash balances in this sub -fund and cash allocations from other funds, as well as costs of insurance premiums and claims not covered by the District's insurance policies. Debt Service Fund — accounts for activity associated with the payment of the District's long term bonds and loans. Each year, the Board adopts the following six budgets: Staffing Plan, Capital Improvement, Operations and Maintenance, Equipment, Self- Insurance, and Debt- - Service. The Board Finance Committee reviews disbursements prior to each regular Board meeting, and disbursements are then approved by the full Board. Monthly financial statements are issued to management and the Board. A detailed mid -year and — annual budget analysis are prepared and presented to the Board. District management is accountable for variances and adhering to budget constraints. The District also has several documented financial policies that are reviewed and updated as appropriate. ASSESSING THE DISTRICT'S ECONOMIC CONDITION Local Economy and Outlook _ The current economic news is bleak and unprecedented. Bank failures abound, both in the U.S. and abroad. The government has responded with a $700 billion bail -out, but investor confidence still appears to be weak. According to the Wall Street journal, the stock market plunged 21% in the seven day period beginning October 1, 2008, and 39% comparing October 2008 to October 2007. Oil prices and energy costs have risen, with gasoline reaching a high of $4.50 per gallon in recent months, followed by some cost relief. Home prices have fallen, mainly due to the glut of foreclosed homes due to the sub -prime mortgage crisis. Consumer demand is down and retailers are already predicting a slow holiday season. According to the Legislative Analyst's Office (LAO), the current situation and outlook for California are similar to the nation as a whole. California faces a huge budget deficit and the overall economic picture of California shows signs of a softening economy with revenue receipts trailing estimates. Unemployment rates are increasing and problems with the housing market continue. Housing is a key variable in California. The problems created by the sub -prime loans are peaking. Approximately 150,000 variable rate loans will reset by the end of 2008 and only about 70,000 homes will reset in 2009. Per the UCLA forecast, housing prices have yet to hit bottom in many parts of the country and the state, and probably won't begin appreciating in value until next year or 2010. The California economy is expected to muddle along this year and next, with recovery depending in part on a bottoming out of the slide in housing prices. It is anticipated that California will experience a no growth economy. Growth should resume at somewhere near normal levels in 2010, after a flat 2009. There is a lot of debate going on about the state of the economy and an underlying assumption of the California portion of the UCLA forecast is that the financial system will not freeze up. On a positive note, the District anticipates growth in Dougherty Valley and reuse of the Concord Navel Weapons Station for housing that the District will serve. There is also an increased need for recycled water within Contra Costa County for urban land uses due to below average rainfall, very low snowmelt runoff, and the largest court ordered water transfer restrictions in state history. The timing of growth will depend on economic conditions. Fortunately, the District's primary operating revenues are sewer service charge from District customers and the City of Concord. The District also receives a portion of the one - percent property tax levied by the Contra Costa County. The District is fortunate to participate in the California's alternative method of apportionment called the Teeter Plan. Under the Teeter plan the County advances the full amount of property tax and other levies to the District based on the tax levy rather than the actual tax collections by the County. The County assumes the risk of delinquencies and in turn retains the penalties and accrued interest. Even though homeowners are bailing on their property tax bills, given the current housing melt down, the County still anticipates collecting the taxes. Growth is anticipated to be flat for at least two years. The District has an excellent reputation in all areas of public service, which include finance, collection, treatment, training, safety, technology, capital projects, construction and customer service. The Central Contra Costa Sanitary District has balanced revenue sources, adequate reserves, and a low debt obligation, which will enable the District to meet the demands of future budgets. CCCSD reviews its rate and other charges annually. The District can increase its Sewer Service Charge rates when needed to make up revenue shortfalls by providing public notice to all customers, holding a Public Hearing, and obtaining approval by the Board of Directors. Long Term Financial Planning District management analyzes and updates their strategic plan annually, with the four main goals being: providing exceptional customer service, maintaining full regulatory compliance, maintaining responsible rates, and continuing to be a high performance organization. Strategies to achieve each of the goals are developed, as well as metrics to evaluate success. The District performs a 10 -year long -term cash flow forecast each year shortly before the budget process begins. The main economic factors usually considered in long range forecasting are: the impact of state legislation and mandates, regulatory compliance, GASB requirements, negotiated salary increases and employee benefits including significant increases in retirement and health care costs, energy costs and interpreting the energy market, and housing growth. Major Initiatives The District's vision it to be a high performance organization that provides exceptional customer service and full regulatory compliance at responsible rates. Full regulatory compliance is provided through exceptional operation of our collection system and treatment facilities as well as through continued investment in our infrastructure. Our current capital plan has an emphasis on collection system renovation in order to fix deteriorating pipes and pumping stations before they can contribute to a sewer system overflow. Both at the State and Federal level, regulations addressing sewer system overflows and public notification have become increasingly stringent over the last iv several years. Collection system operations will be enhanced by the planned construction of a new administration /crew /warehouse building which is being designed to be LEED certified and will incorporate many green design features. LEED represents "Leadership in Energy and Environmental Design ", which is administered by the U.S. Green Building Council. Our current capital plan is also addressing treatment plant reliability through design and construction of three necessary projects. The standby power project, will provide new engine generators to ensure that adequate power is available to run the plant in the event of a utility power outage. A second project, the wet weather improvement project, will ensure that extreme wet weather flows that overwhelm the capacity of the plant outfall and holding ponds can be discharged to Walnut Creek. A third project, the solids handling improvements project, will ensure that sludge can be hauled to proper disposal in the event of a failure of our incineration system. The District has received Platinum and Gold awards from the National Association of Clean Water Agencies (NACWA) for ten straight years in recognition of 100 percent compliance with our National Pollutant Discharge Elimination (NPDES) permit. Recently, the U.S. Environmental Protection Agency selected the District as the second place winner of the 2008 Operations and Maintenance Excellence Awards in the category of Large Secondary Treatment Plant. AWARDS AND ACKNOWLEDGEMENTS _ The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Central Contra Costa Sanitary District for its CAFR for the fiscal year ended June 30, 2007. This was the eighth consecutive year that the District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. This report could not have been accomplished without the dedication and commitment provided by District staff. I would like to express my appreciation to the following employees who assisted in its preparation: ■ The Finance and Accounting staff who compiled the information contained in this document with a special thanks to Thea Vassallo, Accountant, and Colette Curtis - Brown, Finance Administrator. • The Reproduction and Graphics Team who creatively and professionally prepared this finished document. • Engineering and Operations staff who provided much of the statistical information included in this document. • The District's Board of Directors and Management Team for their support in preparing this document as well as their day -to -day support in conducting the financial operations of the District in a prudent and responsible manner. Respectfully submitted, Deborah Ratcli Controller Vi CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD OF DIRECTORS June 30, 2008 Gerald R. Lucey ................ ............................... President Barbara D. Hockett ........................... President Pro -Tern Michael R. McGill ................. ............................... Member Mario M. Menesini ............... ............................... Member James A. Nejedly ................. ............................... Member vii 1 0021 -10/08 11 Central Contra Costa Sanitary District 4 OUR MISSION To protect the public health and the � environment by: • Collecting and treating wastewater • Recycling high quality water • Promoting pollution prevention OUR VISION Bea high erformance organization that .provi es exceptional customer service and full regulatory compliance at responsible rates. OUR VALUES We will achieve our goals by valuing: • Each other • Ethics and integrity • A healthy and safe environment • Community relationships • The meeting of commitments • All aspects of diversity viii X CENTRAL CONTRA COSTA SANITARY DISTRICT Organization Chart - Composite Human Resources Safety & Risk Management Public Information Certificate of Achievement for Excellence in Financial Reporting Presented W Central Contra Costa Sanitary District, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. All aaim President Executive Director Xi Central Contra Costa Sanitary District Financial sectimon Cropper Accountancy Corporation Certified Public Accountants 2977 Ygnacio Valley Road, #460 Walnut Creek, California 94598 Tel: (925) 932 -3860 Fax: (925) 932 -3862 INDEPENDENT AUDITORS' REPORT To the Board of Directors of Central Contra Costa Sanitary District Martinez, California We have audited the accompanying financial statements of the Central Contra Costa Sanitary District as of and for the years ended June 30, 2008 and 2007, as listed in the table of contents. These basic financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the State Controller's Audit Requirements for California Special Districts. Those standards require that we plan and perform the audit to obtain a reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Contra Costa Sanitary District as of June 30, 2008 and 2007, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the State Controller's office for special districts. The Management's Discussion and Analysis is not a required part of the basic financial statements but is supplemental information required by the Government Accounting Standards Board. We have applied — certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit this information and express no opinion on it. Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. The financial information listed as supplementary information in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements taken as a whole. The introductory and statistical sections, as listed in the table of contents, have not been audited by us and accordingly, we do not express an opinion on them. L4r%.- Aec ouw�ot,-, &revnwh4-r% CROPPER ACCOUNTANCY CORPORATION September 12, 2008 District MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the District's annual financial report presents an analysis of the District's financial performance during the fiscal year ended June 30, 2008. This information is presented in conjunction with the audited financial statements, which follow this report. FINANCIAL HIGHLIGHTS The District's 2007 -08 financial highlights are listed below. These results are discussed in more detail later in the report. • The District's total ending net assets increased by $17.9 million or 3.06% in 2007 -08 when compared to fiscal year 2006 -07 • Total revenues were $82.2 million in 2007 -08 compared to $79.7 million in 2006 -07 • Total 2007 -08 expenses were $75.0 million compared to $71.1 million in 2006 -07 • Capital Contributions decreased from $12.4 million in 2006 -07 to $10.7 million in 2007 -08 OVERVIEW OF THE FINANCIAL STATEMENTS This annual report includes the management's discussion and analysis report, the independent auditor's report and the basic financial statements of the District. The financial statements also include notes that explain information in the financial statements in more detail. REQUIRED FINANCIAL STATEMENTS The Financial Statements of the District report information utilizing methods similar to those used by private sector companies. These statements offer short and long -term financial information about its activities. • Statement of net assets -- reports the District's current financial resources (short-term spendable resources) with capital assets and long -term obligations • Statement of revenues, expenses and changes in net assets — reports the District's operating and non - operating revenues by major source along with operating and non - operating expenses and capital contributions • Statement of cash flows — reports the District's cash flows from operating activities, investing, capital and noncapital financing activities 2 40) Recycled Paper STATEMENT OF NET ASSETS The following table shows the condensed statement of net assets of the Central Contra Costa Sanitary District for the past two years: Condensed Statement of Net Assets Fiscal Year Fiscal Year Dollar Percent lflal -9AAQ 9AAK 11AAIT Current Assets $ 86,373,020 $ 80,148,191 $ 6,224,829 _. 7.77% Capital Assets 560,288,889 543,622,261 16,666,628 3.07% Other Non - current Assets 5,219,183 5,506,090 286,907 -5.21% Total Assets 651,881,092 629,276,542 22,604,550 3.59% Current Liabilities 19,261,007 12,278,750 6,982,257 56.86% Non - Current Liabilities 31,009,990 33,261,915 (2,251,925 ) -6.77% Total Liabilities 50,270,997 45 40 665 4,730,332 10.39% Invested in Capital Assets, Net of Related Debt 532,375,068 513,580,658 18,794,410 3.66% Restricted - Debt Service 3,185,416 3,216,163 (30,747) - 0.960/a Unrestricted 66,049,611 66,939,056 889,445 -1.33% Total Net Assets $ 601,610,095 S 583,735,877 $ 17,87A218 218 3.06% The total net assets of the District increased to $601.6 million in 2007 -08, a $17.9 million increase from 2006 -2007. The increase in net assets is the result of net income of $7.2 million and capital contributions of $10.7 million (shown in the next table). By far the largest portion of the District's net assets (88.5% percent) reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, and sewer line infrastructure), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its ratepayers; consequently, these assets are not available for future spending. Although the District's investment in its capital assets is reported net of debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. There is currently $3.2 million restricted for debt service. The remaining balance of unrestricted net assets ($66.0 million) may be used to meet the District's ongoing obligations to its ratepayers and creditors. This space intentionally left blank 3 REVIEW OF REVENUES EXPENSES AND CHANGES IN NET ASSETS The following table shows the condensed statement of revenues, expenses, and changes in net assets for the Central Contra Costa Sanitary District: Condensed Statement of Revenues, Expenses, and Changes in Net Assets Fiscal Year Fiscal Year Dollar Percent 2007 -2008 2006 -2007 Change Change Sewer Service Charges SSC S 48,414,017 S 44,100,883 S 4,313,134 9.78% Other Service Charges and misc. 1,465,569 1,657,238 191,669) - 11.57% Total Operating Revenue 49,879,586 45 758121 4,121,465 9.01 % Customer Contributions (SSC) 14,970,637 15,945,915 975,278) -6.12% Property Tax 12,254,168 11,762,731 491,437 4.18% Permit & Inspection Fees 1,335,160 1,615,308 280,148 - 17.34% All Other 3,771,438 4,574,156 802,718) - 17.55% Total Non-Operating Revenues 32,331,403 33 898110 (1,566,707) -4.62% Total Revenues 82,210,989 79,656,231 2,554, 758 3.21% Total Labor and Benefits 37,312,472 34,678,665 2,633,807 7.59% Chemicals & Utilities 7,223,877 7,024,986 198,891 2.83% Repairs and Maintenance 2,985,670 3,254,643 (268,973) -8.26% Professional, Legal and Outside Services 2,613,658 2,298,712 314,946 13.70% Materials & Supplies 1,728,963 1,734,504 (5,541) -0.32% Hauling and Disposal 877,885 850,439 27,446 3.23% Self - Insurance Expense 916,639 519,284 397,355 76.52% All Other 1,247,298 1,444,082 (196,784) - 13.63% Depreciation Expense 18,615,747 17,714,714 901,033 5.09% Total Operating Expenses 73,522,209 69,520,029 4,002,180 5.76% Non - Operating Expense - Interest Expense 1,518,142 1 609104 (90,962) -5.65% Total Expenses 75,040,351 71,129,133 3,911,218 5.50% Income (Loss) Before Capital Contributions 7,170,638 8,527,098 (1,356,460) -15.91% Contributed Sewer Lines 1,444,420 3,521,704 2,077,284 - 58.99% Capital Contributions - Connection Fees 9,259,160 8,917,658 341,502 3.83% Total Capital Contributions 10,703,580 12,439,362 1,735,782 - 13.95% Change in Net Assets 17,874,218 201966,460 3 092,242) - 14.75% Beginninv, Net Assets 583,735,877 562,769,417 20,966,460 3.73% Ending Net Assets $ 601,610,095 $ 583,735 77 $ 17,874,2 8 3.06% In 2007 -08, operating revenues increased by $4.1 million or 9.0 %; non - operating revenue decreased by $1.6 million or -4.6 %. The change in total revenue resulted in an increase of $2.6 million or 3.2 %. The SSC rate increased in 2007 -08 by 3.7 %, and the Sewer Service allocation between operating and non- operating revenue changed in 2007 -08, reflecting a $4.3 million increase in SSC Operating Revenue and the $1.0 million decrease in non - operating revenue. Property Tax revenue had a modest $500,000 increase due to a 4% growth to the tax base, in spite of the sub -prime mortgage crisis. In 2007 -08, permit and inspection fees decreased in the struggling economy, and lower interest earnings on District investments resulted in a $ 1.1 million revenue decrease compared to 2006 -07. 4 In 2007 -08, operating expenses increased by $4.0 million or 5.8 %. This is mainly due to increases in total labor, depreciation expense, increased self - insurance claims, technical services, chemical, and utility costs. The District booked the second annual GASB 45 liability accrual in the amount of $2.8 million, which is included in employee benefits. Depreciation expense increased by $900,000, reflecting new capital additions. Non - Operating Expense, which is made up of debt service interest expense decreased slightly as more principal was paid off. Total 2007 -08 income before capital contributions decreased from $8.5 million in 2006 -07 to $7.2 million in 2007 -08 for a net decrease of $1.4 million or - 15.9 %. Capital contributions in 2007 -08 were $10.7 million compared to $12.4 million in 2006 -2007, resulting in a decrease of $1.7 million or — 14.0 %. This was mainly due to less contributed sewer lines and connection fees increased due to one -time revenues in spite of housing construction slowing in general. The total change in net assets increased from $583.7 million in 2006 -07 to $601.6 million in 2007 -08. CAPITAL ASSETS As of June 30, 2008, the District's investment in capital assets totaled $560.4 million, which is an increase of $16.8 million or 3.08% over the capital asset balance of $543.6 million at June 30, 2007. Capital assets include the District's entire major infrastructure including wastewater treatment facilities, sewers, land, buildings, pumping stations, vehicles, and furniture and equipment exceeding our capitalization policy limit of $5,000, net of depreciation. A comparison of the District's capital assets over the past two fiscal years is presented below: Fiscal Year Fiscal Year Dollar Percent Capital Assets 2007 -2008 2011021107 Chaneo rhannn Land $ 17,114,720 $ 17,114,720 $ - v 0.00% Sewa a Collection System 242,806,977 226,796,748 16,010,229 7.06% Contributed Sewer Lines 145,596,316 144,151,897 1,444,419 1.00% Outfall Sewers 8,518,443 8,518,443 - 0.00% Sewage Treatment Plant 264,327,208 255,008,296 9,318,912 3.65% Rec cied Water Infrastructure 11,936,662 11,726,507 210,155 1.79% Pumping Stations 51 632,331 50,082,876 1,549,455 3.09% Buildings 19,987,656 19,537,601 450,055 2.30% Furniture & Equipment 13,730,782 12,951,529 779,253 6.02% Motor Vehicles 5,224,941 4,575 910 649,031 14.18% Construction In Progress 28,515,814 24,536,196 3,979,618 16.22% Subtotal 809,391,850 775,000,723 34 391 127 4.44% Less Accumulated Depreciation 249,002,961 231,378,462 17,624,499 7.62% Total Capital Assets net of depreciation) $ 560,388,889 $ 543,622 261 $ 1b,766 628 3.08% The major reasons for the increase of $16.8 million in capital assets, net of depreciation, are: • Sewer pipe ongoing renovations, pumping station improvements, and contributed sewer lines ($19 million) • Treatment plant infrastructure renovations, upgrades, equipment, and improvements ($9.3 million) • Construction In Progress increased by $4.0 million due to increased project activity • Buildings, Recycled Water Infrastructure, Furniture & Equipment, and Motor Vehicles ($2.1 million) 5 • These increases are offset by an increase in accumulated depreciation due to our increasing capital asset value and its associated depreciation expense ( -$17.6 million) See Note 44 in the audited financial statements. DEBT ADMINISTRATION The District has the following outstanding debt as of June 30, 2008: 1998 Revenue Refunding Bonds $ 12,292,648 2002 Revenue Bonds 14,220,000 Water Reclamation Loan Contract 1,629,250 $ 28,141,898 See Note #6 in the audited financial statements. ECONOMIC AND OTHER FACTORS Changes in the state budget have a significant impact on the District. The State currently faces a huge budget deficit. Previous California budget deficits were partially remedied by shifting a portion of local property tax to the state in 2004 -05 and 2005 -06. The tax shift ended in 2006 -07, and the voters passed Proposition IA that mandates the State repay any future property tax that it borrows. Still, there were several proposals made in the 2008 -09 budget process that could either allow for borrowing special district property tax, or eliminating it by shifting it to other government programs. It is probable that our property tax income will be eliminated by some means in the future. Regulatory requirements are becoming more stringent, causing the District to spend more on _ compliance, both for operations and maintenance costs and capital projects. Interest rates remain low, and this negatively impacts interest earnings. The future state of the economy, and the impact to the District, is in question at this time due to large drops in the stock market and failing investment companies. In addition to making efforts to reduce spending and improve process efficiencies, the District has the ability to raise the Sewer Service Charge to meet our long -term commitments. FINANCIAL CONTACT The financial report is designed to provide our customers and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact: Controller, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, CA 94553. FINANCML STATEMENTS CENTRAL CONTRA COSTA SANITARY DISTRICT Statement of Net Assets June 30, 2008 and 2007 2008 ASSETS Current Assets Cash and investments available for operations $ 66,665,766 Accounts receivable 17,002,243 _ Interest receivable 340,273 Parts and supplies 1,612,059 Prepaid expenses 652,679 Total Current Assets 86,273,020 Noncurrent Assets Restricted cash and investments Land, property, plant and equipment, net of accumulated depreciation Construction in progress Contractual assessment district receivable -- Revenue bond issuance costs, net of amortization Total Noncurrent Assets Total Assets LIABILITIES — Current Liabilities Accounts payable and accrued expenses Interest payable Current portion of refunding revenue bonds Current portion of water reclamation loan contract Current portion of accrued compensated absences Liability for uninsured claims Other postemployment benefits Refundable deposits Total Current Liabilities Noncurrent Liabilities Revenue bonds, net of current portion Accrued compensated absences, net of current portion Water reclamation loan contract, net of current portion Total Noncurrent Liabilities Total Liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Unrestricted Total Net Assets 3,696,773 531,773,075 28,515,814 1,394,333 228,077 565,608,072 2007 $ 63,865,052 13,907,341 61,207 1,543,018 771,573 80,148,191 3,569,117 519,086,064 24,536,197 1,678,216 258,757 549,128,351 651,881,092 629,276,542 8,673,582 419,656 2,300,000 144,759 790,000 629,820 5,990,813 312,377 19,261,007 24,212,648 5,312,851 1,484,491 31,009,990 50,270,997 532,375,068 3,185,416 66,049,611 $ 601,610,095 The accompanying notes are an integral part of the financial statements 7 5,143,848 440,824 2,210,000 141,090 629,820 3,157,887 555,281 12,278,750 26,320,020 5,312,645 1,629,250 33,261,915 45,540,665 513,580,658 3,216,163 66,939,056 $ 583,735,877 CENTRAL CONTRA COSTA SANITARY DISTRICT Statement of Revenues, Expenses, and Changes in Net Assets Years Ended June 30, 2008 and 2007 OPERATING REVENUE Sewer service charges (SSC) Service charges - City of Concord Other service charges Miscellaneous charges Total operating revenue OPERATING EXPENSES Sewage collection and pumping stations Sewage treatment Engineering Administrative and general Depreciation Total operating expenses OPERATING LOSS NON - OPERATING REVENUES (EXPENSES) Taxes City of Concord cash contributions to capital costs Customer cash contributions to capital cost (SSC) Permit and inspection fees Interest earnings Interest expense Other income (expense) Total non - operating revenues (expenses) Income before contributions and transfers Contributed sewer lines Capital contributions - connection fees CHANGE IN NET ASSETS Total Net Assets - Beginning Total Net Assets - Ending 2008 $ 40,207,157 8,206,860 869,589 595,980 49,879,586 10,905,468 22,054,203 6,332,830 15,613,961 18,615,747 73,522,209 (23,642,623) 12,254,168 5,336,273 9,634,364 1,335,160 2,527,621 (1,518,142) 1,243,817 30,813,261 7,170,638 1,444,420 9,259,160 17,874,218 583,735,877 $ 601,610,095 The accompanying notes are an integral part of the financial statements 8 2007 $ 35,057,668 9,043,215 793,395 863,843 45,758,121 10,332,732 21,438,368 5,472,707 14,561,508 17,714,714 69,520,029 (23,761,908) 11,762,731 3,435,512 12,510,403 1,615,308 3,257,773 (1,609,104) 1,316,383 32,289,006 8,527,098 3,521,704 8,917,658 20,966,460 562,769,417 $ 583,735,877 CENTRAL CONTRA COSTA SANITARY DISTRICT Statement of Cash Flows Years Ended June 30, 2008 and 2007 Cash Flows From Operating Activities: Receipts from customers and users Payments to suppliers Payments to employees and related benefits Net cash provided by (used in) operating activities Cash Flows From Noacapital Financing Activities: Receipt of taxes Inspection/permit fees and other non - operating income Net cash provided by (used in) non capital and related financing activities Cash Flows From Capital And Related Financing Activities: Capital contributions Connection fees Acquisition and construction of capital assets Principal paid on bonds _ Interest paid on bonds Net cash provided by (used in) capital and related financing activities Cash Flows From Investing Activities Interest received Net decrease in cash and cash equivalents Cash and cash equivalents, July I Cash and Cash equivalents, June 30 Reconciliation of operating loss to net cash provided (used) by operating activities Operating gain (loss) Adjustment to reconcile operating income to net cash provided (used) by operating activities: _ Depreciation expense Net book value on capital assets retired (Increase) decrease in: Accounts receivable Parts and supplies Prepaid expenses Increase (decrease) in: Accounts payable and accrued expenses Refundable deposits Other postemployment benefits Accrued compensated absences Net cash provided by (used in) operating activities Noncash investing, capital, and financing activities Contributions of capital assets End of Period: Unrestricted cash and equivalents Restricted cash and equivalents 2008 $ 46,825,663 (7,360,135) (40,326,309) (860,781) 12,254,168 2,578,977 14,833,145 14,970,637 9,259,160 (33,855,254) (2,158,462) (1,508,630) (13,292,549) 2,248,555 2,928,370 67,434,169 $ 70,362,539 (23,642,623) 18,615,747 17,299 (2,811,019) (69,041) 118,895 3,529,733 (242,904) 2,832,926 790,206 $ (860,781) $ 1,444,420 $ 66,665,766 3,696,773 $ 70,362,539 The accompanying notes are an integral part of the financial statements 2007 $ 41,606,988 (11,878,232) (34,004,606) (4,275,850) 11,762,731 2,931,692 14,694,423 15,945,915 8,917,658 (39,768,810) (2,079,887) (1,793,559) (18,778,683) 3,961,292 (4,398,818) 71,832,987 $ 67,434,169 (23,761,908) 17,714,714 142,652 (2,493,895) 19,001 443,538 428,269 (38,935) 3,157,887 112,827 $ (4,275,850) $ 3,521,704 63,865,052 3,569,117 $ 67,434,169 NOTES TO THE FINANCIAL STATEMENTS CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The Central Contra Costa Sanitary District, a special district and a public entity established under the Sanitary District Act of 1923, provides sewer service for the incorporated and unincorporated areas under -` its jurisdiction. A Board of Directors comprised of five elected members governs the District. As required by accounting principles generally accepted in the United States of America, these basic financial statements present Central Contra Costa Sanitary District and its component unit. The component unit discussed in the following paragraph is blended in the District's reporting entity because of the significance of its operational or financial relationship with the District. Blended Component Unit Component units are legally separate organizations for which the District is financially accountable. Component units may also include organizations that are fiscally dependent on — the District, in that the District approves their budget, the issuance of their debt or the levying of their taxes. In addition, component units are other legally separate organizations for which the District is not financially accountable but the nature and significance of the organization's relationship with the District is such that exclusion would cause the District's financial statements to be misleading or incomplete. For financial reporting purposes, the component unit discussed below is reported in the District's financial statements because of the significance of its relationship with the District. The component unit, although a legally separate entity, is reported in the financial statements using the blended presentation method as if it were part of the District's operations because the Governing Board of the component unit is essentially the same as of governing board of the District and because its purpose is to finance facilities — to be used for the direct benefit of the District. The Central Contra Costa Sanitary District Facilities Financing Authority was organized solely for the purpose of providing financial assistance to the District by acquiring, constructing, improving and financing various facilities, land and equipment purchases, _ and by leasing or selling certain facilities, land and equipment for the use, benefit and enjoyment of the public served by the District. The Corporation has no members and the Board of Directors of the Corporation consists of the same persons who are serving as the Board of Directors of the District. There are no separate basic financial statements prepared for the Corporation. Basis of Accounting The District's financial statements are prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America as promulgated by the Government Accounting Standards Board (GASB). In addition, the District applies all applicable Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The District is a proprietary entity; it uses an enterprise fund format to report its activities for financial statement purposes. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the cost and expenses, including depreciation, of providing goods or services to its customers be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues earned, expense incurred, and net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. 10 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Enterprise funds are used to account for activities similar to those in the private sector, where the proper matching of revenues and costs is important and the full accrual basis of accounting is required. With this measurement focus, all assets and liabilities of the enterprise are recorded on its statement of net assets, all revenues are recognized when earned and all expenses, including depreciation, are recognized when incurred. Enterprise funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. The principal operating revenues of the District are charges to customers for services. Operating expenses for the District include the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. For internal operating purposes, the District's Board of Directors has established four separate sub - funds, each of which includes a separate self - balancing set of accounts and a separate Board approved budget for revenues and expenses. These sub -funds are combined into the single enterprise fund presented in the accompanying financial statements. The nature and purpose of these sub -funds are as follows: Running Expense Running expense accounts for the general operations of the District. Substantially all operating revenues and expenses are accounted for in this sub -fund. Sewer Construction Sewer construction accounts for non - operating revenues, which are to be used for acquisition or construction of plant, property and equipment. Setf Insurance Self insurance accounts for interest earnings on cash balances in this sub -fund and cash allocations from other sub - funds, as well as for costs of insurance premiums and claims not covered by the District's insurance coverage. Debt Service Debt service accounts for activity associated with the payment of the District's long term bonds and loans. That portion of the District's net assets which is allocable to each of these sub -funds has been shown separately in the accompanying financial statements. The District's Board of Directors adopts annual budgets on a basis consistent with accounting principles generally accepted in the United States of America. CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Investments Investments held at June 30, 2008, with original maturities greater than one year are stated at fair _ value. Fair value is estimated based on quoted market prices at year -end. All investments not required to be reported at fair value are stated at cost or amortized cost. Prepaids Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements. Bank Escrow Deposit An escrow agreement was formed between the District and the National Park Service for the Right of Way through the John Muir National Historic Site, in lieu of issuing a bond. The current Right of Way Permit is 10 years, but is renewable and must remain in effect so long as there is sewerage running through the area; therefore it is unlikely that the escrow funds will ever be released to the District. These funds are restricted cash in the financial statements. See note 2. Parts and Supplies Parts and supplies are valued at average cost and are used primarily for internal purposes. Property, Plant, and Equipment Purchased capital assets are stated at historical cost. Capital assets contributed to the District are stated at estimated fair value at the time of contribution. The capitalization threshold for capital assets is $5,000. Expenditures, which materially increase the value or life of a capital assets are capitalized and depreciated over the remaining useful life of the asset. Depreciation of exhaustible capital assets has been provided using the straight -line method as follows: Years Sewage Collection Facilities 75 Sewage Treatment Plant and Pumping Plants 40 Buildings 50 Furniture and Equipment 5-15 Motor Vehicles 6-15 12 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Defined Contribution Retirement Plans District employees may defer a portion of their compensation under a District sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination, retirement, death, or in an emergency as defined by the Plan. The District does not make contributions to the plan. On August 20, 1997, the provisions of the Internal Revenue Code covering section 457 were amended to require existing plans to establish trusts for assets of plans so that they would not be subject to the right of general creditors. The District amended its plan during the fiscal year ended June 30, 1999 to meet this requirement. Consequently, at June 30, 2008, the plans assets are held in trust for the exclusive benefit of the participants and are not included in the District's financial statements. The District also contributes to a money purchase plan created in accordance with Internal Revenue Code section 401(a). Contributions to the plan are made in accordance with a memorandum of understanding stating that in lieu of making payments to Social Security, the District contributes to the 401 (a) Plan an amount equal to that which would have been contributed to Social Security on behalf of its employees as long as the District is not required to participate in Social Security. The assets are held in trust and are not recorded on the books of the District. The District contributed $1,391,089 to the plan during the year ended June 30, 2008. Property Taxes Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of Contra Costa levies, bills and collects property taxes for the District; all material amounts are collected by June 30. General County taxes collected are the same as the amount levied since the County participates in California's alternative method of apportionment called the Teeter Plan. The Teeter Plan, as provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a mechanism for the county to advance the full amount of property tax and other levies to taxing agencies based on the tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon. Secured Property tax bills are mailed once a year during the month of October on the current secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be made in two installments, and are due on November 1 and February 1. Delinquent accounts are assessed a penalty of 10 percent. Accounts, which remain unpaid on June 30, are charged an additional 1 percent per month. Unsecured property tax is due on July 1 and becomes delinquent on August 31. The penalty percentage rates are the same as secured property tax. 13 CENTRAL CONTRA, COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. SUMMARY OF SIGNIFICANT_ ACCOUNTING POLICIES (continued) Compensated Absences The liability for vested vacation, compensatory time, and sick pay is recorded as an expense when _ earned. District employees have a vested interest in 100 percent of accrued vacation time and 85 percent of accrued sick time for employees hired before May 1, 1985. Employees hired after May 1, 1985 have a vested interest in up to 40 percent of their sick time, based upon length of employment with the District. The accrued compensated absences increased to $6,102,851 from $5,312,645 in fiscal 2008. The — current portion of the non - current liability to be used within the next year is estimated by management to be approximately $790,000. Statement of Cash Flows For purposes of the statement of cash flows, all highly liquid investments, including restricted assets, _ with maturities of three months or less when purchased, are considered to be cash equivalents. Included therein are petty cash, bank accounts, and the State of California Local Agency Investment Fund (LAIF). Restricted assets are debt service amounts maintained by fiduciaries and not available for general expenses. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements In April 2004, GASB issued GASB No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This Statement provides guidance on how to report OPEB plans that qualify as a trust or agency funds or as fiduciary component units of either a participating employer, a plan sponsor, a public employee retirement system (Ca1PERS, or other administering entity). The requirements for this statement are effective for fiscal periods beginning after December 15, 2006 provided GASB 45 is also implemented. The District will implement this standard in conjunction — with GASB 45. In July 2004, GASB issued GASBS No. 45, Accounting and Financial Reporting by Employers for — Postemployment Benefits Other Than Pensions. This Statement requires local governmental employers who provide other postemployment benefits (OPEB) as part of the total compensation offered to employees to recognize the expense and related liabilities (assets) in the government -wide financial statements of net assets and activities. This Statement establishes standards for the measurement, recognition, and display of OPEB expense /expenditures and related liabilities (assets), 14 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. Description of District and Summary of Significant Accounting Policies (continued) New Accounting Pronouncements (continued) note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of State and local governmental employers. Current financial reporting practices for OPEB are generally based on pay -as- you -go financing approaches. Current financial reporting practices fail to measure or recognize the cost of OPEB during the periods when employees render the services, or to provide relevant information about OPEB obligations and the extent to which progress is being made in funding those obligations. The District is required to implement the provisions of this Statement for the fiscal year ended June 30, 2009 (effective for fiscal years beginning after December 31, 2007). See note 10 for additional information. In November of 2006, GASB issued GASBS No. 49. Accounting and Financial Reporting Pollution Rmmediation Obligations. The District is required to implement the provisions of this Statement for the fiscal year ended June 30, 2009 (effective for periods beginning after December 15, 2007). This standard addresses current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. The scope of the document excludes pollution prevention or control obligations with respect to current operations, and future pollution remediation activities that are required upon retirement of an asset, such as a landfill closure. This statement may have a material effect on the financial statements of the District. In May of 2007, GASB issued GASBS No. 50, Pension Disclosures - an amendment of GASB Statements No. 25 and No. 27 The District is required to implement the provisions of this Statement for the fiscal year ended June 30, 2008 (effective for periods beginning after June 15, 2007). This Statement aligns more closely the financial reporting requirements for pensions with those for other postemployment benefits (OPEB) and, in doing so, enhances information disclosed in notes to financial statements or presented as required supplementary information (RSI) by pension plans and by employers that provide pension benefits. The reporting changes required by the Statement amend applicable note disclosure and RSI requirements of Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 27, Accounting for Pensions by State and Local Governmental Employers, to conform with requirements of Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. We do not expect this - statement to have a material effect on the financial statements of the District. In June of 2007, GASB issued GASBS No. 51. Accounting and Financial Reporting for Intangible Assets. The District is required to implement the provisions of this Statement for the fiscal year ended June 30, 2010 (effective for periods beginning after June 15, 2009; for governments classified as phase 15 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 1. Description of District and Summary of Significant Accounting Policies (continued) New Accounting_ Pronouncements (continued) 2 under GASBS No. 34, retroactive reporting is required for intangible assets acquired in fiscal years ended after June 30, 1980). This Statement requires that all intangible assets not specifically excluded by its scope provisions be classified as capital assets. Governments possess many different types of assets that may be considered intangible assets, including easements, water rights, patents, trademarks, and computer software. Intangible assets, and more specifically easements, are referred to in the description of capital assets in Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments. This reference has created questions as to whether and when intangible assets should be considered capital assets for financial reporting purposes. The implementation of the provisions of this standard may have a material effect on the financial statements of the District. In November of 2007, GASB issued GASBS No. 52, Land and Other Real Estate Held as Investments by Endowments. The District is required to implement the provisions of this Statement for the fiscal year ending June 30, 2009 (effective for periods beginning after June 15, 2008). This Statement requires endowments to report their land and other real estate investments at fair value and governments to report the changes in fair value as investment income and to disclose the methods and significant assumptions employed to determine fair value, and other information that they currently present for other investments reported at fair value. Endowments exist to invest resources for the purpose of generating income. Other entities that exist for similar purposes — pension and other postemployment benefit plans, external investment pools, and Internal Revenue Code Section 457 deferred compensation plans—however, report land and other real estate held as investments at their fair value. We do not expect this statement to have a material effect on the financial statements of the District. In June of 2008, GASB issued GASBS No. 53. Accounting and Financial Reporting for Derivative Instruments. This Statement requires governments to measure derivative instruments at fair value in their economic resources measurement focus financial statements. Derivative instruments are often complex financial arrangements used by governments to manage specific risks or to make investments. By entering into these arrangements, governments receive and make payments based on market prices without actually entering into the related financial or commodity transactions. Derivative instruments associated with changing financial and commodity prices result in changing cash flows and fair values that can be used as effective risk management or investment tools. Derivative instruments, however, can also expose governments to significant risks and liabilities. Common types of derivative instruments used by governments include interest rate and commodity swaps, interest rate locks, options (caps, floors, and collars), forward contracts, and future contracts. The District is required to implement the provisions of the Statement for the fiscal year ending June 30, 2010 (effective for periods beginning after June 15, 2009), which should allow users of the financial statements to more fully understand the District's resources available to provide services. The District does not currently hold such instruments which would be classified as derivatives other than a minor amount held through the State Investment Pool and Cal Trust. 16 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 2. CASH AND CASH EQUIVALENTS Summary of Investments Investments as of June 30, 2008 are classified in the accompanying financial statements as follows: Cash and investments available for operations $ 66,665,766 Cash in escrow -in lieu of surety bond 100,000 Restricted cash and investments 3,596,773 Total Deposits and Investments $ 70,362,539 * See note 1 — Bank Escrow Deposit General Authorizations Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are indicated in the schedules below: Maximum Maximum Percentage Remaining Authorized Investment Type Maturity U.S. Treasury Obligations 1 year Banker's Acceptance 180 Commercial Paper (1) 270 Collateralized Certificates of Deposit 1 year (2) County Pooled Investment Funds N/A Local Agency Investment Fund (LAIF) N/A Maximum Maximum Percentage Investment of Portfolio In One Issuer None None 40% 15% 25% 15% 30% 15% None None None None (1) Prime quality; limited to corporations with assets over $500,000,000 (2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year 17 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements _ Years Ended June 30, 2008 and 2007 2. CASH AND CASH EQUIVALENTS (continued) Authorized Under Debt Agreements _ Maximum Maximum Maximum Remaining Percentage Investment Authorized Investment Type Maturity of Portfolio In One Issuer — Federal Securities None None None Direct or indirect obligations of the following agencies of the USA: None None None Export-Import Bank None None None _ Farmers Home Administration None None None Participation Certificates issued by the General Services Administration None None None Mortgage - backed bonds or pass- through obligations issued by GNMA, FNMA, FHLMC, or FHA None None None Project notes issued by the US Department of HUD None None None Public housing notes and bonds guaranteed by the USA None None None ` Certificates of Deposit (fully insured by FDIC) None None None Commercial Paper - US Corporations (1) 270 Days None None Bankers acceptances (1) 180 Days None None — State Investment Pool (LAIF) None None None Money Market Funds (1) None None None (1) Rated highest short-term rating by S &P and Moody's Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District manages exposure to interest rate risk by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The District's investments at year end with the exception of the U.S. Treasuries below are held in external investment pools which are liquid investments. Information about the sensitivity of the fair values of the District's investments to market interest — rate fluctuation is provided by the following schedule that shows the distribution of the District's investment by maturity: Investment Type Treasury Bills and obligations Fair Value $3,596,773 Total $ 3,596,773 18 Maturity 12/26/08 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 2. CASH AND CASH EOUIVALENIS (continued) Credit Risk Credit risk is the risk that an issue of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating by the California Government Code, the Districts' investment policy, or debt agreements, and the actual rating as of the year -end for each investment type. Total $70,362,539 Concentration of Credit Risk Not Required Rating as of Year End To Be AAA Unrated Rated $1,265,766 $3,596,773 $29,000,000 36,500,000 $1,265,766 $3,596,773 $65,500,000 During the current fiscal year the District invested exclusively in U.S. Treasuries, CalTrust (a County Joint Powers Agency Authority) and State Investment Pool, which are not limited by the California Government Code or District Investment Policy. Investments in County Treasury — The District is considered to be a voluntary participant in an external investment pool. The fair value of the District's investment in the pool is reported in the accounting financial statements at amounts based upon the District's pro -rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer, which is recorded on the amortized cost basis. Investment in the State Investment Pool — The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California government code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the District's investment in the pool is reported in the accompanying financial statement at amounts based upon the District's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded on the amortized costs basis. lL Minimum Fair Legal Investment Type Value Rating Cash $ 1,265,766 A Treasuries 3,596,773 A CalTrust 29,000,000 N/A State Investment Pool 36,500,000 N/A Total $70,362,539 Concentration of Credit Risk Not Required Rating as of Year End To Be AAA Unrated Rated $1,265,766 $3,596,773 $29,000,000 36,500,000 $1,265,766 $3,596,773 $65,500,000 During the current fiscal year the District invested exclusively in U.S. Treasuries, CalTrust (a County Joint Powers Agency Authority) and State Investment Pool, which are not limited by the California Government Code or District Investment Policy. Investments in County Treasury — The District is considered to be a voluntary participant in an external investment pool. The fair value of the District's investment in the pool is reported in the accounting financial statements at amounts based upon the District's pro -rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer, which is recorded on the amortized cost basis. Investment in the State Investment Pool — The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California government code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the District's investment in the pool is reported in the accompanying financial statement at amounts based upon the District's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded on the amortized costs basis. lL CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 2. CASH AND CASH EQUIVALENTS (continued) Custodial Credit Risk — Investments _ Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g. the broker - dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code does not contain legal or policy requirements that would limit the exposure to custodial credit risk. The District's policy is to use the services of the Treasurer's Office of the County of Contra Costa, which will transact the District's investment decisions in compliance with the requirements of the District's policy. The County Treasurer's Office will execute the District's investments through such brokers, dealers, and financial institutions as are approved by the County Treasurer, and through the State Treasurer's Office for investment in the Local Agency Investment Fund. 3. ACCOUNTS RECEIVABLE At June 30, 2008, accounts receivable are comprised of the following: City of Concord (see Note 8) Household Hazardous Waste Partners All other Total accounts receivable $ 15,899,114 623,761 479,368 $ 17,002,243 This space intentionally left blank. 20 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 4. LAND, PROPERTY, PLANT AND EQUIPMENT, AND CONSTRUCTION IN PROGRESS Property, plant and equipment, and construction in progress are summarized below for the year ended June 30, 2008: At Cost Capital assets not being depreciated Land Construction in progress Total nondepreciated assets Capital assets being depreciated Sewage collection system Contributed sewer lines Outfall sewers Sewage treatment plant Recycled water infrastructure Pumping stations Buildings Furniture and equipment Motor vehicles Total depreciated assets Less accumulated depreciation Sewage system and lines Contributed assets Outfall sewers Sewage treatment plant Recycled water infrastructure Pumping stations Buildings Furniture and equipment Motor vehicles Total accumulated depreciation Total capital assets being depreciated, net Capital assets, net Balance Beginning Transfer Balance of Year Additions Retirements from CIP End of Year $ 17,114,720 $ - 24,536,196 33,172,179 41,650,916 33,172,179 $ - $ - $ 17,114,720 925 (29,191,636) 28,515,814 925 (29,191,636) 45,630,534 226,796,748 - (767,540) 16,677,769 242,706,977 144,151,897 1,444,419 - - 145,596,316 8,518,443 - - - 8,518,443 255,008,296 - (31,000) 9,349,912 264,327,208 11,726,507 - - 210,155 11,936,662 50,082,876 - (5,000) 1,554,455 51,632,331 19,537,603 - - 450,053 19,987,656 12,951,529 - (170,039) 949,292 13,730,782 4,575,910 783,074 1( 34,043) - 5,224,941 733,349,809 2,227,493 1,107,622 29,191,636 763,661,316 31,481,641 3,170,171 (667,540) - 33,984,272 39,318,069 1,943,403 - - 41,261,472 2,313,560 113,353 - - 2,426,913 127,616,765 8,916,235 (31,000) - 136,502,000 _ 3,087,909 465,579 - - 3,553,488 12,018,883 2,119,559 (5,000) - 14,1 33,442 4,697,854 620,465 - - 5,318,319 7,737,364 915,538 (153,666) - 8,499,236 3,106,418 351,444 (134,043) - 3,323,819 231,378,463 18,615,747 991,249 - 249,002,961 501,971,346 (16,388,254) 116,373 29,191,636 514,658,355 $ 543,622,262 $ 16,783,925 $ 117,298 ) $ - $ 560,288,889 21 CENTRAL CONTRA COSTA SANITARY DISTRICT _ Notes to Financial Statements Years Ended June 30, 2008 and 2007 5. CONTRACTUAL ASSESSMENT DISTRICTS The District established the Contractual Assessment District (CAD) program to help homeowners finance the cost of connecting to the District. The construction costs associated with the project within the program are capitalized and depreciated. Individual homeowners are assessed an amount equal to their share of the construction costs and connection fee. The assessments plus interest are generally payable over 10 years. At year -end, the receivable balance was $1,394,333. 6. LONG -TERM DEBT Revenue Bonds 2002 In May 2002, the District issued $16,565,000 of Revenue Installment Certificates for Wastewater Facilities Improvements, with interest rates ranging from 4.0 to 5.0 %. The bonds are secured by a pledge of revenue. Principal payments are due annually on September 1, commencing in fiscal year 2005, and interest is payable semi - annually on September 1 and March 1 of each year. Refunding Revenue Bonds —1998 & 1994 Defeased Debt In September 1998, the District issued $25,335,000 of Refunding Revenue Bonds with interest rates ranging from 3.5 and 4.7 %. The Bonds are secured by a pledge of revenue. Principal payments are due annually on September 1, and interest is payable semi - annually on September 1 and March 1. The District issued the 1998 Refunding Revenue Bonds to advance refund the 1994 Revenue Installment Certificates, which had interest rates of 5.25 to 6.25 %. The net proceeds were deposited in an escrow fund to service and redeem the 1994 debt. As a result, the advance refunding met the requirements of an in- substance debt defeasance, and the outstanding balance of the 1994 debt was removed from the District's accounts. The 1994 issue no longer has an outstanding balance. The excess of the amount required to be deposited into the escrow fund over the net carrying amount of the 1994 debt resulted in a deferred loss. The deferred loss is reported as reduction of the new debt and is being amortized over the 15 -year term of the new debt. Summary The changes in the District's long -term ob Balance July 1, 2007 General obligation bonds $28,530,020 Water Reclamation Loan 1,770,340 X30.300.360 ligations during the year cor Deferred Cost Deductions $ 192,628 $ 2,210,000 141,090 92_b28 S 2.351.090 22 isisted of the foll, Balance June 30, 2008 $26,512,648 1,629,250 28.141.89 swing: Due in One Year $ 2,300,000 144.759 444 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 6. LONG -TERM DEBT (continued) Debt Service Requirements The 2002 and 1998 Revenue Bonds debt service requirements are as follows: Water Reclamation Loan Contract The District has entered into a contract with the State of California State Water Resources Control Board (the Board), where the Board advanced to the District $2,916,872 for design and construction costs for projects related to recycled water treatment programs. - 23 2002 1998 Fiscal Year Debt Service Debt Service Ending June 30, 2007 Requirement Requirement Total 2009 $ 1,271,061 $ 2,216,178 $ 3,487,239 2010 1,265,261 2,216,478 3,481,739 2011 1,263,561 2,222,341 3,485,902 2012 1,265,762 2,217,429 3,483,191 2013 1,266,391 2,216,648 3,483,039 2014-2018 6,332,714 4,440,595 10,773,309 2019-2024 7,617,525 - 7,617,525 Total 20,282,275 15,529,669 35,811,944 Amount representing interest (6,062,275) (2,209,669) (8,271,944) Principal outstanding 14,220,000 13,320,000 27,540,000 Less: Unamortized deferred loss on refunding year end - (1,027,352) (1,027,352) 14,220,000 12,292,648 26,512,648 Short-term portion of revenue bonds (635,000) (1,665,000) (2,300,000) Long -term portion of revenue bonds $ 13,585,000 $ 10,627,648 $ 24,212,648 Water Reclamation Loan Contract The District has entered into a contract with the State of California State Water Resources Control Board (the Board), where the Board advanced to the District $2,916,872 for design and construction costs for projects related to recycled water treatment programs. - 23 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 b. LONG -TERM DEBT (continued) Water Reclamation Loan Contract (continued) The District must repay advances from the Board over a 20 -year period beginning March 31, 1999, with an interest rate of 2.60 %. Debt service requirements are as follows: Years 2009 2010 2011 2012 2013 2014-2018 Total Amount representing interest Less: Current portion of Water Reclamation Loan Contract Long term portion of Water Reclamation Loan Contract Local Improvement District Bonds Debt Service Requirements $ 187,119 187,119 187,119 187,119 187,119 935,598 1,871,193 (241,943) 1,629,250 (144,759) $ 1,484,491 Within the District's boundaries, there exist several Improvement Districts, which were formed for the sole purpose of financing sewer system improvements. The District has no oversight responsibility for these Districts and is not liable for repayment of any bonds issued to finance these local improvement districts. Contra Costa County acts as the agent for the property owners in these districts in collecting assessments, forwarding collections to bondholders, and initiating foreclosure procedures, if appropriate. The outstanding balance on these bonds was $100,000 at June 30, 2008. 7. RISK MANAGEMENT The District is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disaster. The District joined with other entities to form the California Sanitation Risk Management Authority ( CSRMA), a public entity risk pool currently operating as a common risk management and insurance program for the member entities. The purpose of CSRMA is to spread the adverse effects of losses among the member entities and to purchase excess insurance as a group, thereby reducing its cost. Through CSRMA, the District purchases property insurance and workers' compensation insurance. 24 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 7. RISK MANAGEMENT (continued) Insurance Coverage The District's insurance coverage is as follows: Self Insured Deductible Per Type of Insurance Coverage Insurer Limits Occurrence All -Risk Property Fire Public Entity Property Insurance Program (PEPiP) $505,541,991 $ 250,000 Boiler & Machinery PEP1P (Shared Limits per Occurrence) $100,000,000 $ 250,000 Liability Errors and Omissions Insurance Company of the State of Pennsylvania (AIG) $ 15,000,000 $ 500,000 Employment Practices Liability AIG $ 15,000,000 $ 1,000,000 Employment Practices Liability Admiral Insurance Company $ 1,000,000 $ 15,000 General Liability AIG $ 15,000,000 $ 500,000 Auto Liability AIG $ 15,000,000 $ 500,000 Pollution (General Aggregate) American International Specialty $ 5,000,000 $ 5,000 General Liability Lines Insurance Co. (Occurrence) Pollution (Legal Liability American International Specialty Aggregate) (Claims Made) Lines Insurance Co $ 10,000,000 $ 50,000 Workers' Compensation CSRMA $ 750,000 - Excess Workers' Compensation National Union Fire Insurance Company (statutory) $ 50,000,000 $ 750,000 Fiduciary Liability Nation Union Fire Ins. Com $ 1,000,000 $ 5,000 Liability for Uninsured Claims The Governmental Accounting Standards Board (GASB) requires state and local governments to record their liability for uninsured claims in their financial statements. The District's uninsured claims activity and exposure relates primarily to its general and automobile liability program. The District records its estimated liability for uninsured claims in this area based on the results of periodic actuarial evaluations. The actuarial evaluations are typically performed every two years. For intervening years, the liability for uninsured claims is reviewed for adequacy based on claims activity during the intervening period. 25 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements _ Years Ended June 30, 2008 and 2007 7. RISK MANAGEMENT (continued) Liabilitv for Uninsured Claims (continued) For the fiscal year ended June 30, 2008, 2007, and 2006, settlements have not exceeded insurance _ coverage. Changes in the District's estimated liability for uninsured claims for fiscal years 2008, 2007, and 2006 are summarized as follows: _ 2008 2007 2006 Beginning balance $ 629,820 $ 881,500 $ 881,500 Provisions for claims incurred in the current year and changes in the liability for uninsured — claims incurred in prior years 387,095 (208,667) 198,292 Claims and claim adjustment expenses paid (387,095) (43,013) 19( 8,292) Ending balance $ 629,820 $ 629,820 $ 881,500 8. AGREEMENT WITH THE CI'T'Y OF CONCORD In 1974, the District and the City of Concord (the City) entered into a cost - sharing agreement under which the District became responsible for providing sewage treatment facilities and services to the City. Under this agreement, the City pays a service charge for its share of operating, maintenance and administrative costs and makes a contribution for its share of facilities capital costs expended. Service charges and contributions to capital costs from the City totaled $8,206,860 and $5,336,273 respectively, for the year ended June 30, 2008. 9. PENSION PLAN Plan Description _ Substantially, all District full -time employees are required to participate in the Contra Costa County Employees' Retirement Association (CCCERA), a cost - sharing multiple - employer public employee deferred benefit retirement plan (Plan), governed by the County Employee's Retirement Law of 1937, as amended. The latest available actuarial and financial information for the Plan is for the year ended December 31, 2007. The Contra Costa Employees' Retirement Association issues a publicly available financial report that includes financial statements and supplemental information of the Plan. That report is available by writing to Contra Costa County Employees' Retirement Association, 1355 Willow Way, Suite 221, Concord, CA 94520 -5728 or calling (925) 521-3960. The Plan provides for retirement, disability, and death and survivor benefits. Annual cost of living (COL) adjustments to retirement allowances can be granted by the Retirement Board as provided by State statutes. Service retirements are based on age, length of service and final average salary. Subject to vested status, employees can withdraw contributions plus interest credited, or leave them as a deferred retirement when they terminate, or transfer to a reciprocal retirement system. 26 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Years Ended June 30, 2008 and 2007 9. PENSION PLAN (continued) Plan Contribution Requirement The Plan requires employees to pay one -half of the basic retirement benefit and one -half future COL costs. However, the District has paid the employee's basic contributions in accordance with the Memorandum of Understanding (MOU). The contribution requirement and payment from the District for the plan year ended June 30, 2008 and 2007 was as follows: Covered payroll for fiscal years ended June 30 Employer contributions to pension Employee contributions to pension Total Contributions 2008 2007 2006 $ 22,503,704 $ 21,504,951 $ 20,687,905 8,757,705 8,045,860 7,202,912- 892,488 861,387 812,220 $ 9,650,193 $ 8,907,247 $ 8,014,132 These contributions represented approximately 43 %, 41% and 39% of covered payroll for the fiscal years ended June 30, 2008, 2007 and 2006, respectively, and were equal to the District's required contributions and the employee's basic contributions for each year. This space intentionally left blank. 27 CENTRAL CONTRA COSTA SANITARY DISTRICT _ Notes to Financial Statements Years Ended June 30, 2008 and 2007 10. POST EMPLOYMENT HEALTH CARE BENEFITS The District provides certain health care and life insurance benefits for retired employees. These benefits are provided for in negotiated employment agreements, commonly referred to as Memorandums of Understanding, which cover substantially all employees who reach normal retirement age while working for the District. These benefits, and similar benefits for active employees, are provided through a health maintenance organization and an insurance company whose premiums are based on the benefits paid during the year. The District recognizes the cost of providing those benefits by expensing the annual insurance premiums, which were $2,167,074 for the 178 eligible retirees for the year ended June 30, 2008. The Government Accounting Standards Board (GASB) published Statement 45 in 2004 with an effective date of fiscal year ending June 30, 2009 for the District. Statement 45 requires a minimum expense called the Annual Required Contribution (ARC) equal to the actuarial normal cost plus — amortization of the Unfunded Actuarial Accrued Liability (UAAL) over 30 years (or less) as a level percentage of increasing payroll. An actuarial study was performed by the District as of June 30, 2007. The 2007 study estimated the District's Actuarial Accrued Liability (AAL) to be $68,447,956 based on an expected 5% discount rate. The Annual Required Contribution (ARC) is estimated to be $6,224,478 over a 30 year period. The District set aside $2,832,926 and $3,157,887 or $5,990,813 in 2008 and 2007, respectively, to comply with GASBS No. 45. The District is required to implement GASBS No. 45 by June 30, 2009. 11. COMMITMENTS AND CONTINGENCIES Commitments and contingencies, undeterminable in amount, include normal recurring pending claims and litigation. In the opinion of management, based upon discussion with legal counsel, there is no pending litigation which is likely to have a material adverse effect on the financial position of the District. Claims and losses are recorded when they are reasonably probable of being incurred and the amount is estimable. Insurance proceeds and settlements are recorded when received. The District has purchase commitments relating to construction projects at June 30, 2008 of $38,363,997. 28 S UP PL EME N TA R Y I NF O R MA T I ON CENTRAL CONTRA COSTA SANITARY DISTRICT COMBINING SCHEDULE OF STATEMENT OF NET ASSETS AS OF JUNE 30, 2008 ASSETS Current Assets Cash and investments available for operations Accounts receivable Interest receivable Due from other sub -funds Parts and supplies Prepaid expenses Total Current Assets Noncurrent Assets Restricted cash and investments Land, property, plant and equipment, net of accumulative depreciation Construction in progress Contractual assessment district receivable Revenue bond issuance costs net of amortization LIABILITIES Current Liabilities Accounts payable and accrued expenses Due to other sub -funds Interest payable Current portion of refunding water revenue bond Current portion of water reclamation loan contract Liability for uninsured claims OPEB employee benefits Accrued compensation absences Refundable deposits Total Current Liabilities NONCURRENT LIABILITIES Revenue bonds, net of current portion Accrued compensated absences Water reclamation loan contract net of current portion Total Liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Unrestricted Total Net Assets Running Sewer Self Debt Expense Construction insurance Service Elimination Total 756,074 6 62,172,167 3 3,737,525 - - - - 6 66,665,766 9,186,003 7 7,816,240 - - - - - - 1 17,002,243 - 3 340,273 - - - - - - 3 340,273 78,624,202 5 59,087,782 7 796,553 3 32,912,108 ( (171,420,645) - - 1,612,059 - - - - - - - - 1 1,612,059 652,679 - - - - - - 6 652,679 90,831,017 1 129,416,462 4 4,534,078 3 32,912,108 ( (171,420,645) 8 86,273,020 100,0 - - - - 3 3,596,773 - - 3 3,696,773 531,773,075 - - - - - - - - 5 531,773,075 28,515,814 - - - - - - - - 2 28,515,814 - 1 1,394,333 - - - - - - 1 1,394,333 - - - 2 228,077 2 228,077 651,219,906 1 130,810,795 4 4,534,078 3 36,736,958 ( (171,420,645) 6 651,881,092 2,630,198 6 6,013,439 2 29,945 - - - - 8 8,673,582 83,303,286 7 79,181,826 7 751,830 8 8,183,703 ( (171,420,645) - - 8,299 - - - - 4 411,357 - - 4 419,656 The accompanying notes are an integral part of the financial statements 29 CENTRAL CONTRA COSTA SANITARY DISTRICT COMBINING SCHEDULE OF STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2008 Operating Revenues Sewer Service Charges (SSC) Service charges - City of Concord Other service charges Miscellaneous charges Total operating revenues Operating Expenses Running Sewer Self Debt Expense Construction Insurance Service Elimination Total S 40,207,157 S - S - $ - $ S 40,207,157 8,206,860 - - - - 8,206,860 869,589 - - - - 869,589 595,980 - - - - 595,980 49,879,586 - - - 49,879,586 Sewage collection and pumping stations 10,905,468 - - - - 10,905,468 Sewage treatment 22,054,203 - - - - 22,054,203 Engineering 6,332,830 - - - - 6,332,830 Administrative and general 15,828,965 - 916,639 - (1,131,643) 15,613,961 Depreciation 18,615,747 - - - 18,615,747 Total operating expenses _ 73,737,213 - 916,639 - (1,131,643) 73,522,209 Operating Loss (23,857,627) - _ (916,639) - 1,131,643 (23,642,623) Non - Operating Revenues (Expenses): Taxes - 8,502,204 - 3,751,964 - 12,254,168 City of Concord cash contributions to capital costs - 5,336,273 - - - 5,336,273 Customer cash contributions to capital cost (SSC) - 9,634,364 - - - 9,634,364 Permit and inspection fees 981,557 353,603 - - - 1,335,160 Interest earnings 741,038 1,509,802 159,503 117,278 - 2,527,621 Interest expense - - - (1,518,142) - (1,518,142) Other income (expense) 534,643 709,174 1,131,643 - (1,131,643) 1,243,817 Total non - operating revenues (expenses) 2,257,238 26,045,420 1,291,146 2,351,100 (1,131,643) 30,813,261 Income (loss) before contributions and transfers (21,600,389) 26,045,420 374,507 2,351,100 - 7,170,638 Contributed sewer lines 1,444,420 - - - - 1,444,420 Capital contributions - connectionfees - 9,259,160 - - - 9,259,160 Transfers 34,201,858 (31,850,758) - (2,351,100) - - Change in Net Assets 14,045,889 3,453,822 374,507 - - 17,874,218 Total Net Assets - Beginning 538,999,870 41,988,031 2,747,976 - 583,735,877 Total Net Assets - Ending $ 553,045,759 _L45,441,853 S 3,122,483 $ - S - $ 601,610,095 The accompanying notes are an integral part of the financial statements 30 CENTRAL CONTRA COSTA SANITARY DISTRICT Schedule of Running Expenses Comparison of Budget and Actual Expenses by Department June 30, 2008 The accompanying notes are an integral part of the financial statements 31 Sewage Administrative Variance Sewage Pumping Treatment and Favorable Collection Stations Plant Engineering General Total - Bud t _ (Unfavorable) - Salaries and Wages $ 3,885,189 $ 936,940 $ 7,399,532 S 4,665,034 4,090,622 $ 20,977,317 $ 21,108,578 $ 131,261 Employee Benefits 2,605,926 598,292 4,881,108 2,876,191 8,350,264 I9,311,781 18,550,711 (761,070) Directors' Fees and Expense - - - - 75,314 75,314 76,790 1,476 Chemicals - 339,039 1,096,695 - - 1,435,734 1,390,000 (45,734) Professional and Legal Services 2,190 - 2,633 126,128 393,197 524,148 516,420 (7,728) Outside Services 101,118 29,932 405,013 526,638 1,026,809 2,089,510 2,290,550 201,040 Hauling and Disposal 48,932 7,377 350,015 471,561 - 877,885 1,022,310 144,425 Repairs and Maintenance 599,749 246,406 1,777,534 86,379 275,602 2,985,670 3,365,371 379,701 Materials and Supplies 727,428 64,942 621,175 177,271 138,147 1,728,963 1,796,530 67,567 Utilities 97,077 448,763 5,061,779 51,523 129,001 5,788,143 5,951,860 163,717 Other 175,157 28,154 545,653 167,339 1,387,324 2,303,627 2,364,766 61,139 Less Capitalized Overhead and Benefits (23,003) (14,140) 86,934 ____J2,815,234) (37,315) (2,976,626) (3,20_6,851) (230,225) 8,219,763 2,685,705 22,054,203 6,332,830 $ 15,828,965 $ 55,121,466 $ 55 227,035 $ 105,569 The accompanying notes are an integral part of the financial statements 31 CENTRAL CONTRA COSTA SANITARY DISTRICT Running Expense Schedule of Supplemental Net Assets Analysis June 30, 2008 Prior Year Balance 2007 -2008 Revenue 2007 - 2008 Expense Add Back Depreciation Expense Net Assets Attributed to General Operations All Other Net Assets Running Expense Net Assets $ 9,767,747 $ 52,136,824 (73,737,213) 18,615,747 (2,984,642) 6,783,105 The accompanying notes are an integral part of the financial statements 32 546,262,654 $ 553,045,759 Central Contra Costa Sanitary District Statistical Section Central Contra Costa Sanitary District Statistical Section — Table of Contents Financial Trends These schedules contain trend information to help the reader understand how the District's financial performance has changed over time. Changes is Net Assets and Statement of Net Assets - LastSix Fiscal Years ........................................................... ............................S -1 Revenue by Type - Last Ten Fiscal Years ............................. ............................S -2 Operating Expenses by Type - Last Ten Fiscal Years .......... ............................S -3 Revenue Capacity These schedules contain information to help the reader assess the District's most significant revenue sources. Major Revenue Base and Rates - Historical and Current Fees - LastTen Fiscal Years .......................................................... ............................S -4 Sewer Service Charge - List of Ten Largest Customers - Last Six Fiscal Years ........................................................ ............................... S -5 Assessed and Estimated Actual Valuation of Taxable Property - Last Ten Fiscal Years .......................................................... ............................S -6 Property Tax and Sewer Service Charge Fees Levied and Collected - Last Ten Fiscal Years .......................................................... ............................S -6 _ Debt Capacity This schedule contains information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future. Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio - Last Ten Fiscal Years .......................................................... ............................S -7 Demographic and Economic Information This schedule offers demographic and economic indicators to help the reader understand the environment within which the District's financial activities take place. Demographic and Economic Data - Population Served - Last Ten Calendar Years .................................................... ............................S -8 List of Ten Largest Employers in Contra Costa County - Last Year and Nine Years Ago ........................................... ............................S -8 Demographic and Economic Statistics - Contra Costa County - Last Ten Fiscal Years .......................................................... ............................S -9 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs. Full -time Equivalent Employees by Department - Last Ten Fiscal Years ........S -10 Number of Retirees and Surviving Spouses - Last Ten Fiscal Years ..............S -10 Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ...S -11 Miscellaneous Statistics ....................................................... ...........................S -11 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The District implemented GASB Statement 34 in the 2002 -2003 fiscal year; schedules presented include information beginning in that year. Central Contra Costa Sanitary District Changes in Net Assets and Statement of Net Assets Last Six Fiscal Years Changes in Net Assets Operating Revenues: Sewer Service Charges (SSC) City of Concord Other Service Charges Miscellaneous Charges Total Operating Revenue Operating Expenses: Salaries & Benefits Chemicals, Utilities & Supplies Professional & Outside Services Hauling, Disposal, Repairs & Maintenance Self- Insurance (net of transfers) Depreciation All Other Total Operating Expenses Operating Loss Non - Operating Revenues (Expenses): Property Taxes Customer Contributions Connection & Other Fees Interest Income Interest Expense All Other Total Non - Operating Income Before Contributions and Transfers Contributed Sewer Lines Capital Contributions - Connection Fees CHANGE IN NET ASSETS Total Net Assets - Beginning Total Net Assets - Ending 2007 -2008 2006 -2007 2005 -2006 2004 -2005 2003 -2004 2002 -2003 $ 40,207,157 $ 35,057,668 $ 37,781,774 $ 32,282,806 $ 33,935,899 $ 31,967,101 8,206,860 9,043,215 7,383,011 6,603,000 6,609,602 6,321,452 869,589 793,395 755,827 672,887 648,617 633,037 595,980 863,843 517,741 612,851 560,454 506,812 49,879,586 45,758,121 46,438,353 40,171,544 41,754,572 39,428,402 1,243,817 1,316, 383 1,096,401 1,109,716 37,312,472 34,678,665 29,875,340 27,989,401 28,095,636 24,919,820 8,952,840 8,759,490 7,646,866 6,801,750 5,808,070 5,735,379 2,613,658 2,298,712 2,850,825 2,350,387 2,282,408 2,084,830 3,863,555 4,105,082 3,826,165 3,716,176 3,871,749 3,557,171 (215,004) (180,716) 629,513 1,189,693 464,702 407,007 18,615,747 17,714,714 16,354,488 16,041,555 15,186,594 14,527,871 2,378,941 2,144, 082 1,330,946 1,437,272 1,267,809 1,243,345 73,522,209 69,520,029 62,514,143 59,526,234 56,976,968 52,475,423 (23,642,623) (23,761,908) (16,075,790) (19,354,690) (15,222,396) (13,047,021) 12,254,168 11,762,731 4,836,301 4,010,380 8,919,327 8,801,230 14,970,637 15,945,915 9,862,620 14,716,585 10,187,725 7,833,641 1,335,160 1,615,308 2,062,216 4,265,620 2,936,298 1,479,870 2,527,621 3,257,773 2,465,985 1,519,192 831,215 925,509 (1,518,142) (1,609,104) (1,694,304) (1,775,857) (1,101,115) (1,153,349) 1,243,817 1,316, 383 1,096,401 1,109,716 1,467,877 1,076,654 30,813,261 32,289,006 18,629,219 23,845,636 23,241,327 18,963,555 7,170,638 8,527,098 2,553,429 4,490,946 8,018,931 5,916,534 1,444,420 3,521,704 3,044,945 5,530,848 4,410,808 7,818,537 9,259,160 8,917,658 10,496,898 10,728,717 6,585,984 5,530,064 17,874,218 20,966,460 16,095,272 20,750,511 19,015,723 19,265,135 583,735,877 562,769,417 546,674,145 525,923,634 506,907,911 487,642,776 601,610,095 583,735,877 562,769,417 546,674,145 525,923,634 506,907,911 Statement of Net Assets 2007 -2008 2006 -2007 2005 -2006 2004 -2005 2003 -2004 2002 -2003 Investments in Capital Assets, Net of Related Debt $ 532,375,068 $ 513,580,658 $ 486,098,303 $ 469,375,715 $ 453,251,761 $ 443,350,151 Restricted for Debt Service 3,185,416 3,216,163 3,647,257 3,118,704 3,035,944 4,484,542 Unrestricted 66,049,611 66,939,056 73,023,857 74,179,726 69,635,929 59,073,218 Total Net Assets 601,610,095 583,735,877 562,769,417 546,674,145 525,923,634 506,907,911 The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required. Source: Central Contra Costa Sanitary District Audited Financial Statements S -1 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 c $50,000,000 o $40,000,000 $30,000,000 $20,000,000 $10,000,000 Central Contra Costa Sanitary District Revenue By Type Last Ten Fiscal Years 998 -1999 1999 -2000 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Fiscal Year ■Operating Revenue 0Non- Operating Revenue Fiscal Year Property Taxes Operating Revenue Connection & Other Fees Interest Fiscal Sewer Service City of Other Service Miscellaneous Year Charges" Concord Charges Charges 1998 -1999 $ 23,063,532 $ 4,786,407 $ 661,168 $ 229,851 1999 -2000 23,165,616 5,342,002 446,168 309,535 2000 -2001 27,613,157 6,610,774 601,270 345,295 2001 -2002 31,228,855 5,897,008 617,768 508,916 2002 -2003 31,967,101 6,321,452 633,037 506,812 2003 -2004 33,935,899 6,609,602 648,617 560,454 2004 -2005 32,282,806 6,603,000 672,887 612,851 2005 -2006 37,781,774 7,383,011 755,827 517,741 2006 -2007 35,057,668 9,043,215 793,395 863,843 2007 -2008 40,207,157 8,206,860 869,589 595,980 2005 -2006 4,836,301 Non- ODeratina Revenue 12,559,114 2,465,985 Fiscal Year Property Taxes Customer Contributions `1 Connection & Other Fees Interest All Other TOW , 1998 -1999 $ 6,169,390 $ 6,556,005 $ 5,415,272 $ 3,127,827 $ 158,844 $ 21;427,338 1999 -2000 6,684,949 8,733,886 5,786,188 2,921,648 330,623 24,457,294, 2000 -2001 7,238,662 9,636,912 5,004,261 2,979,749 408,120 25,267,704 2001 -2002 7,551,581 19,006,658 5,385,527 1,498,751 1,032,527 34,475,044 2002 -2003 8,801,230 15,652,178 7,009,934 925,509 1,076,654 33,465,505 2003 -2004 8,919,327 14,598,533 9,522,282 831,215 1,467,877 35,339,234 2004 -2005 4,010,380 20,247,433 14,994,337 1,519,192 1,109,716 41,8011,058 2005 -2006 4,836,301 12,907,565 12,559,114 2,465,985 1,096,401 36,81%,3' 2006 -2007 11,762,731 19,467,619 10,532,966 3,257,773 1,316,383 46,337,472' 2007 -2008 12,254,168 16,415,057 10,594,320 2,527,621 1,243,817 43,034,983 Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections. '1 Customer Contributions also include the portion of SSC that is allocated to Sewer Construction Fund and City of Concord reimbursement of capital costs. Beginning in 2000 -2001, due to changes in GASB 33 reporting requirements developer contributed sewer lines are also included. Source: Central Contra Costa Sanitary District Audited Financial Statements S -2 Central Contra Costa Sanitary District Operating Expenses by Type La t T F' I Y $75,000,000 Isca ears - $70,000,000 Professional & - - - - - - - $65,000,000 & Supplies - $60,000,000 - -- - - - - - $ 2,345,887 $ $55,000,000 -- - 5,130,743 - - $50,000,000 - - 7,496,028 2,762,603 w $45,000,000 22,848,114 7,009,868 2,110,886 2002 -2003 !° $40,000,000 5,735,379 2,084,830 2003 -2004 G $35,000,000 5,808,070 2,282,408 _ $30,000,000 6,801,750 2,350,387 $25,000,000 - - - - - $20,000,000 - - - -- - $15,000,000 2,298,712 2007 -2008 $10,000,000 - - $5,000,000 3,716,176 - $- 1,437,272 59,526,234 1998 -1999 1999 -2000 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 16,354,488 Fiscal Year 62,514,143 • Salaries and Benefits ❑ Chemicals, Utilities & Supplies ❑ Professional & Outside Services 17,714,714 1,444,082 • Hauling, Disposal, Repairs & Maintenance ■ Self- Insurance ❑ Depreciation 916,639 18,615,747 ■ All Other 73,522,209 Fiscal Chemicals, utilities Professional & Year & Supplies Outside Services 1998 -1999 $ 19,564,429 $ 4,399,152 $ 2,345,887 $ 1999 -2000 20,034,810 5,130,743 2,560,175 2000 -2001 22,051,911 7,496,028 2,762,603 2001 -2002 22,848,114 7,009,868 2,110,886 2002 -2003 24,919,820 5,735,379 2,084,830 2003 -2004 28,095,636 5,808,070 2,282,408 2004 -2005 27,989,401 6,801,750 2,350,387 2005 -2006 29,875,340 7,646,866 2,850,825 2006 -2007 34,678,665 8,759,490 2,298,712 2007 -2008 37,312,472 8,952,840 2,613,658 Source: Central Contra Costa Sanitary District Audited Financial Statements OPERATING EXPENSES - Total Operating Expenses 4,115,527 $ 644,371 $ 11,345,155 $ 920,080 $ 43,334,601 3,513,754 419,312 12,157,975 1,034,683 44,851,452 3,621,826 924,242 13,004,018 1,085,888 50,946,516 3,476,325 677,159 13,833,124 745,605 50,701,081 3,557,171 632,007 14,527,871 1,018,345 52,475,423 3,871,749 689,702 15,186,594 1,042,809 56,976,968 3,716,176 1,189,693 16,041,555 1,437,272 59,526,234 3,826,165 879,513 16,354,488 1,080,946 62,514,143 4,105,082 519,284 17,714,714 1,444,082 69,520,029 3,863,555 916,639 18,615,747 1,247,298 73,522,209 S -3 Non -Operating Expenses $ 1,301,200 1,304,980 1,250,588 1,202,782 1,153,349 1,101,115 1,775,857 1,694,304 1,609,104 1,518,142 Informational - not graphed $350 $300 $250 U U) i $200 $150 Q $100 $50 $0 Central Contra Costa Sanitary District Major Revenue Base and Rates Historical and Current Fees Last Ten Fiscal Years 1998 -1999 1999 -2000 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Fiscal Year L ■ Operations ■ Capital Fiscal Year 1998 -1999 1999 -2000 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Annual Sewer Service Charge "1 Facility Capacity Fee *2 Pump Zone Fee *3 Operations Capital Total $157 $31 $188 $2,572 $348 157 31 188 2,572 348 185 15 200 2,572 348 204 20 224 3,360 710 207 41 248 3,360 710 218 54 272 3,983 988 204 76 280 3,983 988 234 46 280 4,150 1,331 213 76 289 4,263 1,404 242 58 300 4,524 1,466 "1 All residential accounts pay a flat annual sewer service charge shown above per household. The charge for commercial users consists of an annual rate based on a measured volume of water usage per 100 cubic feet (HCF). `2 New users who are connected to the Wastewater System are charged Capital Improvement Fees called Facility Capacity Fees. (Fee is per connection.) '3 New customers in areas where wastewater pumping stations are needed to reach the District's gravity fed sewers are charged a Pump Zone Fee. (Fee is per connection.) Source: Central Contra Costa Sanitary District Environmental Services Division S-4 Central Contra Costa Sanitary District Sewer Service Charge List Of Ten Largest Customers Last Six Fiscal Years ' Total $10,147,494 20.34% $10,845,664 23.44% $ 9,128,865 19.66% $ 8,284,804 20.62% $ 8,193,361 19.62% $ 7,667,544 19.45% The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required. Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton. Converted to condominiums during 2006 -2007 fiscal year. Source: Central Contra Costa Sanitary District Environmental Services Division S -5 2007 -2008 2006 -2007 2005-2006 2004-2005 2003-2004 2002 -2003 Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Rateoaver Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue City of Concord* $ 8,206,860 1 16.45% $ 9,043,215 1 19.76% $ 7,383,011 1 15.90% $ 6,603,000 1 16.44% $ 6,609,602 1 15.83% $ 6,321,452 1 16.03% Contra Costa County General Services 316,854 2 0.64% 322,351 2 0.70% 295,173 2 0.64% 294,670 2 0.73% 250,442 3 0.60% 222,619 2 0.56% First Walnut Creek Mutual 316,200 3 0.63% 304,606 3 0.67% 295,120 3 0.64% 266,000 3 0.66% 258,400 2 0.62% 206,246 3 0.52% Park Regency 267,600 4 0.54% 257,788 4 0.56% 249,760 4 0.54% 249,760 4 0.62% 242,624 4 0.58% 197,408 4 0.50% Second Walnut Creek Mutual 225,000 5 0.45% 216,750 5 0.47% 210,000 5 0.45% 210,000 5 0.52% 204,000 5 0.49% 158,224 5 0.40% John Muir Health 223,775 6 0.45% 121,613 10 - - - - - - - - - Sun Valley Mall 183,380 7 0.37% 176,293 6 0.39% 169,916 6 0.37% 158,077 6 0.39% 145,169 6 0.35% 138,993 6 0.35% ArchstoneTreat Commons Apartments 153,000 8 0.31% 147,390 7 0.32% 142,800 7 0.31% 142,800 7 0.36% 138,720 7 0.33% 126,480 7 0.32% St. Mary's College Contract 136,016 9 0.27% 127,355 9 0.28% 117,119 10 0.25% - - 97,670 10 0.23% 106,497 8 0.27% Kaiser Foundation Hospital 118,809 10 0.24% - - 126,904 9 0.27% 100,976 10 0.25% - - - - Willows Shopping Center - - 128,303 8 0.28% - - 120,459 9 0.30% 111,822 9 0.27% 103,321 9 0.26% Reflections San Ramon Apartments— - - 139,062 8 0.30% 139,062 8 0.35% 134,912 8 0.32% - - Canyon Point Condominiums - - - - - - 86,304 10 0.22% ' Total $10,147,494 20.34% $10,845,664 23.44% $ 9,128,865 19.66% $ 8,284,804 20.62% $ 8,193,361 19.62% $ 7,667,544 19.45% The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required. Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton. Converted to condominiums during 2006 -2007 fiscal year. Source: Central Contra Costa Sanitary District Environmental Services Division S -5 Central Contra Costa Sanitary District Assessed and Estimated Actual Valuation of Taxable Property Last Ten Fiscal Years Fiscal Year Local Secured Unsecured Total % Change 1998 -1999 $ 32,514,783,517 $ 1,119,407,570 $ 33,634,191,087 6.1% 1999 -2000 34,973,946,879 1,140,492,514 36,114,439,393 7.4% 2000 -2001 38,029,210,584 1,225,608,154 39,254,818,738 8.7% 2001 -2002 40,166,666,299 1,375,049,056 41,541,715,355 5.8% 2002 -2003 43,172,880,129 1,434,598,034 44,607,478,163 7.4% 2003 -2004 46,821,339,668 1,446,650,234 48,267,989,902 8.2% 2004 -2005 50,577,841,843 1,416,240,351 51,994,082,194 7.7% 2005 -2006 55,586,311,888 1,463,536,750 57,049,848,638 9.7% 2006 -2007 61,409,513,246 1,533,076,135 62,942,589,381 10.3% 2007 -2008 66,416,736,187 1,583,187,663 67,999,923,850 8.0% Property Tax and Sewer Service Charge Fees Levied and Collected Last Ten Fiscal Years " General County taxes collected are the same as the amount levied since the County participates in California's alternative method of apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code, establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assu- mes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon. Source: Contra Costa County Auditor - Controller's Office S -6 Property Tax* Sewer Service Charges* Fiscal Year Levied & Collected % Change Levied & Collected % Change 1998 -1999 $ 6,254,229 6.7% $ 26,984,372 2.1% 1999 -2000 6,723,957 7.5% 27,078,595 0.3% 2000 -2001 7,228,881 7.5% 29,253,537 8.0% 2001 -2002 7,901,161 9.3% 33,650,005 15.0% 2002 -2003 8,460,674 7.1% 37,479,440 11.4% 2003 -2004 9,013,484 6.5% 41,499,031 10.7% 2004 -2005 4,027,427 -55.3% 43,327,756 4.4% 2005 -2006 4,856,758 20.6% 44,261,318 2.2% 2006 -2007 11,860,961 144.2% 46,694,671 5.5% 2007 -2008 12,092,637 2.0% 48,883,932 4.7% " General County taxes collected are the same as the amount levied since the County participates in California's alternative method of apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code, establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assu- mes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon. Source: Contra Costa County Auditor - Controller's Office S -6 I i I I 1 I I I I I I I I I I I i i I Central Contra Costa Sanitary District Summary Of Debt Service Last Ten Fiscal Years Type Of Debt $4,500,000 -_ -- -- $4,000,000 -- - $3,500,000 - - - - -- $3,000,000 - - - - - $2,500,000 - - -- --6 $2,000,000 - - - $1,500,000 -- - $1,000,000 - - - -- $500,000 - - $0 1998 -1999 1999 -2000 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Fiscal Year ■ Revenue Bonds 2002 & 1998 ■ Water Reclamation Loan Fiscal Year Summa B T Reclamation Water Total Princi al Interest Debt Service Principal Interest tN Debt • • Total Debt Service Total Total Debt Service Principal Interest Debt Service 1998 -1999 $ 835,000 $ 1,005,749 $ 1,840,749 $ 139,194 $ 47,925 $ 187,119 $ 974,194 $ 1,053,674 $ 2,027,868 1999 -2000 725,000 1,013,715 1,738,715 114,900 72,219 187,119 839,900 1,085,934 1,925,834 2000 -2001 1,245,000 979,240 2,224,240 117,887 69,232 187,119 1,362,887 1,048,472 2,411,359 2001 -2002 1,285,000 993,407 2,278,407 120,952 66,167 187,119 1,405,952 1,059,574 2,465,526 2002 -2003 1,330,000 1,435,811 2,765,811 124,097 63,022 187,119 1,454,097 1,498,833 2,952,930 2003 -2004 1,375,000 1,583,739 2,958,739 127,323 59,796 187,119 1,502,323 1,643,535 3,145,858 2004 -2005 1,995,000 1,719,372 3,714,372 130,634 56,485 187,119 2,125,634 1,775,857 3,901,491 2005 -2006 2,060,000 1,641,215 3,701,215 134,030 53,089 187,119 2,194,030 1,694,304 3,888,334 2006 -2007 2,135,000 1,559,500 3,694,500 137,515 49,604 187,119 2,272,515 1,609,104 3,881,619 2007 -2008 2,210,000 1,472,113 3,682,113 141,090 46,029 187,119 2,351,090 1,518,142 3,869,232 Debt Restrictions: Revenue Pledge & Covenant: The District pledges Property Tax Revenue along with its ability to raise Sewer Service Charge (SSC) rates. Debt Coverage requirements are discussed in the footnotes below. •1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions. '2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenuerrotal Debt Service). '3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges. '4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service). '5 Number of connections to the sewer system. Commercial customers based on water consumption, averaged using the residential fixed rate (SSC /O &M SSC Rate). Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S -7 Debt Service Cover a a Surnmary Debt Ratio ary Total Total Operating Non - Operating Debt Service Capital Debt Service Debt to Sewer Service Cost of Debt Fiscal Debt Operating Expenses less Revenue & Net Coverage Improvement Adjusted Net Coverage Expense Equivalent Per Equivalent Year Service Revenue De reciation Contributions Revenue'1 Net Revenue) *2 Fees /Concord Revenue *3 (Adj. Net Revenue)•4 Ratio Units•5 Unit 1998 -1999 $ 2,027,868 $28,740,958 $ 31,989,446 $ 21,427,338 $ 18,178,850 8.96 $ 6,457,432 $ 11,721,418 5.78 6.34% 146,891 $ 13.81 1999 -2000 1,925,834 29,263,321 32,693,477 24,457,294 21,027,138 10.92 8,867,213 12,159,925 6.31 5.89% 147,552 13.05 2000 -2001 2,411,359 35,170,496 37,942,498 25,267,704 22,495,702 9.33 7,927,822 14,567,880 6.04 6.36% 149,245 16.16 2001 -2002 2,465,526 38,252,547 36,867,957 34,475,044 35,859,634 14.54 5,753,738 30,105,896 12.21 6.69% 153,073 16.11 2002 -2003 2,952,930 39,428,402 37,947,552 33,465,505 34,946,355 11.83 7,023,589 27,922,766 9.46 7.78% 154,420 19.12 2003 -2004 3,145,858 41,754,572 41,790,374 35,339,234 35,303,432 11.22 8,370,344 26,933,088 8.56 7.53% 155,669 20.21 2004 -2005 3,901,491 40,171,544 43,484,679 41,881,058 38,567,923 9.89 13,351,448 25,216,475 6.46 8.97% 158,249 24.65 2005 -2006 3,888,334 46,438,353 46,159,655 33,865,366 34,144,064 8.78 12,931,577 21,212,487 5.46 8.42% 161,461 24.08 2006 -2007 3,881,619 45,758,121 51,805,315 46,337,472 40,290,278 10.38 12,353,170 27,937,108 7.20 7.49% 164,582 23.58 2007 -2008 3,869,232 49,879,586 54,906,462 1 43,034,983 1 38,008,107 9.82 14,595,433 1 23,412,674 1 6.051 7.05% 166,145 1 23.29 •1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions. '2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenuerrotal Debt Service). '3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges. '4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service). '5 Number of connections to the sewer system. Commercial customers based on water consumption, averaged using the residential fixed rate (SSC /O &M SSC Rate). Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S -7 Central Contra Costa Sanitary District Demographic and Economic Data Population Served Last Ten Calendar Years Source: Central Contra Costa Sanitary Distdct Environmental Services Division List of Ten Largest Employers in Contra Costa County Last Year and Nine Years Ago Employers Chevron Texaco Corporation Kaiser Permanente AT &T Kaiser Foundation Hospital John Muir Medical Center John Muir Mt. Diablo Medical Center 24 Hour Fitness Bio -Rad Laboratories Doctors Medical Center USS Posco Industries Bank of America - Systems Engineering Tosco Refining All Others 2007 Estimated Inside District Concord/ Total % As Of January 1 Boundaries Clayton Served Change 1999 290,780 125,610 416,390 1.2% 2000 294,170 126,300 420,470 1.0% 2001 291,230 135,150 426,380 1.4% 2002 293,080 134,920 428,000 0.4% 2003 302,675 135,900 438,575 2.5% 2004 303,980 135,845 439,825 0.3% 2005 308,428 135,780 444,208 1.0% 2006 309,600 135,400 445,000 0.2% 2007 314,400 134,300 448,700 0.8% 2008 317,340 134,560 451,900 0.7% Source: Central Contra Costa Sanitary Distdct Environmental Services Division List of Ten Largest Employers in Contra Costa County Last Year and Nine Years Ago Employers Chevron Texaco Corporation Kaiser Permanente AT &T Kaiser Foundation Hospital John Muir Medical Center John Muir Mt. Diablo Medical Center 24 Hour Fitness Bio -Rad Laboratories Doctors Medical Center USS Posco Industries Bank of America - Systems Engineering Tosco Refining All Others 2007 Estimated % of Total County Employees Rank Employment 7,100 1 1.3% 5,000 2 1.0% 3,150 3 0.6% 2,300 4 0.5% 1,900 5 0.4% 1,500 6 0.3% 1,200 7 0.2% 1,100 8 0.2% 1,000 9 0.2% 975 10 0.2% 489,925 515,150 95.1% 100.0% 1998 Estimated % of Total County Employees Rank Employment 2,900 3 0.7% 4,500 2 1.0% 2,000 4 0.4% 1,900 5 0.4% 1,500 6 0.3% 1,050 8 1,000 9 1,000 10 5,000 1 1,200 7 427,000 449,050 Source: County of Contra Costa, California, Comprehensive Annual Financial Report for 6/30/07, Statistical Section, excludes government employers. S -8 0.2% 0.2% 0.2% 1.1% 0.3% 95.2% 100.0% Central Contra Costa Sanitary District Demographic and Economic Statistics Contra Costa County Last Ten Fiscal Years Fiscal Year Per Capita Average Ended Personal Personal Unemployment June 30 Population* Income* Income* Rate ** 1999 936,983 37,126,251 39,623 3.1% 2000 953,407 42,417,859 44,491 3.5% 2001 972,630 43,472,330 44,696 4.1% 2002 982,813 43,304,580 44,062 5.7% 2003 991,153 44,177,166 44,571 6.1% 2004 997,456 47,550,512 47,672 5.4% 2005 1,005,106 50,471,711 50,215 4.9% 2006 1,009,371 53,224,116 52,730 4.3% 2007 N/A N/A N/A 4.7% 2008 N/A N/A N/A N/A N/A - Information not available at this time. U.S. Department of Commerce, Bureau of Economic Analysis, updated estimates as of April 2008. " State of California, Employment Development Department (EDD), annual calendar figure. S -9 Department Administration Engineering Operations Collection Systems Plant Pumping Station Operations Total District Total Central Contra Costa Sanitary District Full -time Equivalent Employees by Department Last Ten Fiscal Years Number of Retirees and Surviving Spouses as of June 30 Last Ten Fiscal Years District Total 131 144 150 156 159 163 167 167 177 178 S -10 Full -time Equivalent Employees as of June 30 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 39 43 42 42 43 42 43 42 42 45 62 64 67 67 70 71 76 73 75 76 40 43 41 42 44 45 46 49 50 50 79 77 79 81 82 82 81 88 83 77 7 7 7 7 8 9 9 9 10 11 126 127 127 130 134 136 136 146 143 138 236 239 247 249 260 259 255 261 227 234 Number of Retirees and Surviving Spouses as of June 30 Last Ten Fiscal Years District Total 131 144 150 156 159 163 167 167 177 178 S -10 I I 1 I I I I I 1 l I I I I I I I I Central Contra Costa Sanitary District Capital Asset and Operating Statistics Last Ten Calendar or Fiscal Years Collection Svstems /Pumoina Stations /Outfall Sewers Pipeline Miles Number of pumping stations Recycled Water Recycled Water Produced per day Number of Recycled Water Customers Household Hazardous Waste (HHW) - Inception 1997/1998 Residential Participation (Number of cars) Percentage of Households in Service Area Operating Cost per Car Pounds of HHW per Car Miscellaneous Statistics Governing Body: Governmental Structure: Staff: Authority: Services: Type Of Treatment: Service Area: Total Population Served: Sewer Service Charge: Other Data Calendar 1,500 1,500 1,500 1,400 1,400 1,400 1,400 1,391 1,376 1,361 Calendar 18 18 18 22 21 23 22 22 21 21 Calendar 1.6 mgd 1.6 mgd 1.5 mgd 1.5 mgd 1.4 mgd 1.5 mgd 1.5 mgd 1.4 mgd 1.3 mgd 1.1 mgd Calendar 30 30 24 23 21 20 20 19 13 11 Fiscal 26,447 23,992 22,872 23,061 22,359 19,219 17,308 15,649 14,019 9,536 Fiscal 13.6% 12.3% 12.1% 12.3% 12.1% 10.5% 9.3% 8.6% 7.7% 5.2% Fiscal $ 61 $ 64 $ 60 $ 58 $ 62 $ 66 $ 67 $ 71 $ 75 $ 93 Fiscal 71 80 65 64 71 72 77 77 64 78 Elected 5- Member Board of Directors Established in 1946 under the Sanitary District Act of 1923 259 full -time equivalent employees California Health and Safety Code Section 4700 et. Seq. Wastewater collection, treatment, and disposal Household Hazardous Waste Facility Recycled Water Discharge - Secondary; Reclamation - Tertiary 142 square miles 451,900 $300 annually per residential equivalent unit Source: Central Contra Costa Sanitary District records S -11 Millions of Gallons per Day (mgd) Treatment Plant Year 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Treatment Plant Permited Capacity Calendar 53.8 53.8 53.8 53.8 53.8 53.8 45.0 45.0 45.0 45.0 Average Dry Weather Flow (ADWF) Calendar 38.6 41.6 41.4 40.6 40.0 39.4 38.4 40.8 39.6 42.0 Wastewater Treated per day Calendar 41.2 50.4 48.0 44.7 42.9 43.1 42.1 45.5 44.4 51.0 Tons per Year Sludge to Fumace (Dryp1 Fiscal 15,340 15,341 15,841 16,727 16,053 16,318 16,881 16,076 15,847 15,041 Ash to Reuse Site (Wet)•2 Fiscal 4,418 4,418 5,074 5,397 5,384 5,235 5,226 4,781 5,353 4,184 '1 In the multi -hearth furnace, the wet sludge is converted to dry ash. Water is added to the dry ash as it is loaded into trucks (ratio of 60 percent ash to 40 percent water) to prevent the ash from blowing out of the truck during transport. '2 Wet sludge, which at 22 to 28 percent solids, is pumped to the multiple -hearth furnace for incineration. The table above shows the dry tons per year of sludge to the furnace, excluding the 72 to 78 percent water in the wet sludge. Collection Svstems /Pumoina Stations /Outfall Sewers Pipeline Miles Number of pumping stations Recycled Water Recycled Water Produced per day Number of Recycled Water Customers Household Hazardous Waste (HHW) - Inception 1997/1998 Residential Participation (Number of cars) Percentage of Households in Service Area Operating Cost per Car Pounds of HHW per Car Miscellaneous Statistics Governing Body: Governmental Structure: Staff: Authority: Services: Type Of Treatment: Service Area: Total Population Served: Sewer Service Charge: Other Data Calendar 1,500 1,500 1,500 1,400 1,400 1,400 1,400 1,391 1,376 1,361 Calendar 18 18 18 22 21 23 22 22 21 21 Calendar 1.6 mgd 1.6 mgd 1.5 mgd 1.5 mgd 1.4 mgd 1.5 mgd 1.5 mgd 1.4 mgd 1.3 mgd 1.1 mgd Calendar 30 30 24 23 21 20 20 19 13 11 Fiscal 26,447 23,992 22,872 23,061 22,359 19,219 17,308 15,649 14,019 9,536 Fiscal 13.6% 12.3% 12.1% 12.3% 12.1% 10.5% 9.3% 8.6% 7.7% 5.2% Fiscal $ 61 $ 64 $ 60 $ 58 $ 62 $ 66 $ 67 $ 71 $ 75 $ 93 Fiscal 71 80 65 64 71 72 77 77 64 78 Elected 5- Member Board of Directors Established in 1946 under the Sanitary District Act of 1923 259 full -time equivalent employees California Health and Safety Code Section 4700 et. Seq. Wastewater collection, treatment, and disposal Household Hazardous Waste Facility Recycled Water Discharge - Secondary; Reclamation - Tertiary 142 square miles 451,900 $300 annually per residential equivalent unit Source: Central Contra Costa Sanitary District records S -11