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HomeMy WebLinkAbout10/01/2009 AGENDA BACKUP3.a. Awards and Commendations RESOLUTION NO. 2009 -074 A RESOLUTION RECOGNIZING AND COMMENDING CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE SERVICE AWARD RECIPIENTS WHEREAS, the good reputation and positive community relationship of an organization is dependent on its competent, hard - working employees; and WHEREAS, the continuing dedication and knowledge of experienced, long -term employees is a significant asset to the District; and WHEREAS, it is the policy of the District to recognize and honor these employees for their service to the District; and WHEREAS, the following employees are deserving of recognition for their dedicated service to the District: 35 years of service: Randy Covey 30 years of service: Severina Camorongan, Robert Hinkson, Paul Louis, Garth Williams 25 years of service: Cathryn Freitas, Patricia Kast, Christopher Keith, James Kelly 20 years of service: Aaron Cortez, William Echols; Keith Gore, Susan Hasselwander, Karen Huff, Clinton Jackson, Doris Keifer, Tri Nguyen 15 years of service: Douglas Drewes 10 years of service: Wesley Adams, Keith Brauch, Ann Chiappelone, Spencer Chun, Ann Farrell, Warren Gaines, Sylvia Gray, James Kneis, Bonnie Lowe, Alexandr Mestetsky, Twila Mullenix, Ernesto Rodriguez, Dwight Williams 5 years of service: Shawn Bitle, Mary Bradshaw, Tom Brown, David Clayton, Donald Comstock, Rick Ginn, Johnnie Levingston, Roy Manes, Jay Nightingale, Russell Salva, Sean Sarras, Janet Weeks WHEREAS, the collective efforts and contributions of these experienced and capable employees have contributed to the District's ability to consistently meet permit and regulatory requirements and have shaped the District into a nationally acclaimed wastewater collection and treatment agency while serving the needs of our customers with efficiency and fiscal responsibility. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District, that service awards are presented with appreciation to the above named employees. BE IT FURTHER RESOLVED that this Resolution of Commendation is presented in unanimous recognition and acknowledgment of the continuing service and unwavering dedication of these outstanding employees. PASSED AND ADOPTED this 15` day of October, 2009 James A. Nejedly President of the Board of Directors Barbara D. Hockett Gerald R. Lucey Michael R. McGill Mario M. Menesini COUNTERSIGNED: James M. Kelly General Manager Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 1, 2009 No.: 4.d. Consent Calendar Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO AMEND CCCSD'S SPHERE OF INFLUENCE (SOI) IN THREE AREAS (DISTRICT SOI AMENDMENT 181) Submitted By: Initiating Dept. /Div.: Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services REVIEWED AND RECOMMEND D FOR BOARD ACTION: J. M moto -Mills CS .Alm ames M. Ily, General M ager ISSUE: A Board of Directors' Resolution of Application is required to initiate formal Local Agency Formation Commission ( LAFCO) Sphere of Influence (SOI) amendment proceedings. RECOMMENDATION: Adopt a Resolution of Application to initiate LAFCO SOI amendment proceedings for three areas in Martinez designated as District SOI Amendment 181. FINANCIAL IMPACTS: CCCSD incurs costs to prepare SOI applications and pays fees to LAFCO. The costs for SOI amendments are recovered through "annexation charges" paid when properties in CCCSD are connected to public sewers. ALTERNATIVES /CONSIDERATIONS: The Board could decline to initiate the SOI amendment for these areas, which is not recommended since state law requires consistency between CCCSD boundaries and areas served. BACKGROUND: It is appropriate to amend CCCSD's SOI for three areas in Martinez, to include one property on Pomona Avenue and one property on Venner Road that are currently served by CCCSD's public sewers; and to exclude a third area just west of Imhoff Place comprised of CCCSD's Household Hazardous Waste Collection Facility and the 4737 Imhoff Place property currently being served by Mt. View Sanitary District. The location of each SOI Amendment Area is shown on Attachments 1. 2. and 3. Staff has drafted Resolution of Application requesting that LAFCO initiate SOI amendment proceedings for the three areas described as follows: • SOI Amendment Area 181 -1 includes the property at 2220 Pomona Avenue, as well as a portion of Walnut Street in Martinez. This property is connected to CCCSD's public sewer system. N: \ENVRSEC \Position Papers \Miyamoto- Mi11s\2009 \PP - Sol Amendment 181 FINAL 10- 1- 09.doc POSITION PAPER Board Meeting Date: October 1, 2009 Subject. ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO AMEND CCCSD'S SPHERE OF INFLUENCE (SOI) IN THREE AREAS (DISTRICT SOI AMENDMENT 181) SOI Amendment Area 181 -2 includes the property at 4833 Venner Road in Martinez. This property is connected to CCCSD's public sewer system. SOI Amendment Area 181 -3 includes CCCSD's Household Hazardous Waste Collection Facility and the property at 4737 Imhoff Place. These facilities are connected to Mt. View Sanitary District. CCCSD staff has concluded that the proposed SOI amendment is exempt from CEQA under CCCSD CEQA Guidelines Section 15319, since it involves existing lots with existing facilities. Adoption of the recommended resolution will establish the Board of Directors' independent finding that the SOI amendment is exempt from CEQA. RECOMMENDED BOARD ACTION: Adopt a Resolution of Application to initiate LAFCO proceedings for District SOI Amendment 181, including the finding that the SOI Amendment is exempt from CEQA under CCCSD CEQA Guidelines Section 15319. N:\ENVRSEC \Position PapersWiyamoto- Mills\2009 \1313 - Sol Amendment 181 FINAL 10- 1- 09.doc �,y I v 660 j 0 �� SITE ore o 4 MARTINEZ 'moo 24 CENTER 'I LOCATION MAP App N.T.s ti, CCCSD D C0 m ` v ST ,/ / I• i ;I MA�.�Np�l LEGEND 3 �I —••— CURRENT SOI ^I —••— PROPOSED SOI S ,I Central Contra Costa Sanitary District 0 MT. VIEW z SANITARY DISTRICT m AVE P N i o 150 300 FEET PROPOSED SOI AMENDMENT 181 -1 Attachment 1 Q� (rFNNFR .E UPTON ,�• e,.(• a � MARTINEZ LOCATION MAP N.T.S. MT. VIEW SANITARY DISTRICT LEGEND: —••— CURRENT SOI —••— PROPOSED 501 y Central Contra Costa Sanitary District Rp N I G 15f. 300 r-EE7 CCCSD PROPOSED SOI AMENDMENT 181 -2 I-t Attachm?nt PA F / •d � y Central Contra Costa Sanitary District Rp N I G 15f. 300 r-EE7 CCCSD PROPOSED SOI AMENDMENT 181 -2 I-t Attachm?nt PA F MT. VIEW SANITARY DISTRICT IMHOFF HHWCF r I t O '11 'f1 SITE LOCATION MAP N.T.S. CCCSD 1 /x j POD y � 68 . �; O HOB I � N LEGEND: ! I —••— CURRENT SOI o top i -— PROPOSED SOI Central Contra Costa Attachment Sanitary District ' PROPOSED SOI AMENDMENT 181 -3 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 1, 2009 No.: 4.e. Consent Calendar Type of Action: ADOPT RESOLUTION subject: ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO ANNEX ELEVEN ANNEXATION AREAS TO THE DISTRICT (DISTRICT ANNEXATION 178) Submitted By: Initiating DeptJDiv.: Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDE FOR BOARD ACTION: J. moto -Mills C. Swanson K. Alm James . KeIIY, Gener anager ISSUE: A Board of Directors' Resolution of Application is required to initiate formal Local Agency Formation Commission ( LAFCO) annexation proceedings. RECOMMENDATION: Adopt a Resolution of Application to initiate LAFCO annexation proceedings for eleven areas designated as District Annexation 178. FINANCIAL IMPACTS: The District incurs costs to prepare annexation applications and pays fees to LAFCO, the County Surveyor and the State Board of Equalization for annexation processing. Annexation costs are recovered as "annexation charges' when property is connected to the public sewer system. ALTERNATIVES /CONSIDERATIONS: The Board could decline to initiate annexation for these areas, which would require that the property owners apply directly to LAFCO for annexation to the District. BACKGROUND: The owners of thirteen properties in Martinez and Pleasant Hill have either submitted annexation petitions or are already connected to the District's public sewer system. These properties and an additional twenty -four adjacent or surrounding unannexed properties were organized into eleven "annexation areas" to eliminate "islands" within District boundaries. All of the annexation areas except 178 -1 are within the District's Sphere of Influence (SOI). Annexation Area 178 -1 is expected to be included in CCCSD's SOI through the proceedings for SOI Amendment 181. All of the annexation areas are within the County Urban Limit Line. The general location of each annexation area is shown on Attachment 1. Staff has drafted a Resolution of Application requesting that LAFCO initiate annexation proceedings for the eleven annexation areas described as follows: N: \ENVRSEC \Position Papers Wliyamoto- Mills\2009 \PP - Annexation 178 FINAL - 10 -1 -09 Aoc Page 1 of 3 POSITION PAPER Board Meeting Date: October 1, 2009 subject. ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO ANNEX ELEVEN ANNEXATION AREAS TO THE DISTRICT (DISTRICT ANNEXATION 178) • Annexation Area 178 -1 is comprised of one existing single family home on Pomona Avenue in Martinez. This property is connected to the District's public sewer. • Annexation Area 178 -2 is comprised of one existing single family home on John Muir Road in Martinez. This property is connected to the District's public sewer system. Annexation Area 178 -3 is comprised of three existing single family homes, two existing multiple family homes, and two vacant parcels on Flora Street, Sabral Circle, and C Street in Martinez. • Annexation Area 178 -4 is comprised of four existing single family homes, and three vacant parcels on Milden Road and Hampton Road in Martinez. Two of these properties are connected to the District's public sewer system. • Annexation Area 178 -5 is comprised of two existing single family homes on Arreba Street and Hilmar Street in Martinez. • Annexation Area 178 -6 is comprised of one existing single family home on John Muir Road in Martinez. This property is connected to the District's public sewer system. • Annexation Area 178 -7 is comprised of three existing single family homes, one access parcel, and one vacant parcel on Creekside Road in Pleasant Hill. One of these properties is connected to the District's public sewer system. • Annexation Area 178 -8 is comprised of nine existing single family homes on Alhambra Way and Walnut Avenue in Martinez. Two of these properties are connected to the District's public sewer system. • Annexation Area 178 -9 is comprised of one existing single family home on Grothman Lane in Martinez. • Annexation Area 178 -10 is comprised of one existing single family home on Alhambra Way in Martinez. N:\ENVRSEC \Position Papers \Miyamoto- MiIIs\2009 \PP - Annexation 178 FINAL - 10 -1 -09 .doc Page 2 of 3 POSITION PAPER Board Meeting Date: October 1, 2009 subject ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO ANNEX ELEVEN ANNEXATION AREAS TO THE DISTRICT (DISTRICT ANNEXATION 178) • Annexation Area 178 -11 is comprised of one single family home and one vacant parcel on Milden Road in Martinez. One of these properties is connected to the District's public sewer system. District staff has concluded that annexation of each property in Annexation Areas 178 -1 through 178 -11 (inclusive) is exempt from CEQA under District CEQA Guidelines Section 15319, since each would involve annexation of existing lots for existing or exempt facilities. Adoption of the recommended resolution will establish the Board of Directors' independent finding that annexation of these properties is exempt from CEQA. RECOMMENDED BOARD ACTION: Adopt a Resolution of Application to initiate LAFCO proceedings for District Annexation 178 including the finding that annexation of each property in Annexation Areas 178 -1 through 178 -11 (inclusive) is exempt from CEQA under District CEQA Guidelines Section 15319. N: \ENVRSEC \Position Papers \Miyannoto- MiIIM2009 \PP - Annexation 178 FINAL - 10 -1 -09 .doc Page 3 of 3 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 1, 2009 No.: 4. f . Consent Calendar Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO DETACH TWO AREAS FROM CENTRAL CONTRA COSTA SANITARY DISTRICT (CCCSD) - DISTRICT DETACHMENT 182 Submitted By: Initiating Dept /Div.: Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: —1� J. Miy oto -Mills C. Swanson A. Farrell �'it REM A 4mV14 - es Wkelly, eneral Manager ISSUE: A Board of Directors' Resolution of Application is required to initiate formal Local Agency Formation Commission ( LAFCO) detachment proceedings. RECOMMENDATION: Adopt a Resolution of Application to initiate LAFCO detachment proceedings for one area in Martinez and one area in Concord designated as District Detachment 182. FINANCIAL IMPACTS: CCCSD incurs costs to prepare detachment applications and pays fees to LAFCO and the State Board of Equalization for detachment processing. Detachment costs are not recovered due to the fact that the properties in question are no longer in CCCSD's service area. ALTERNATIVES /CONSIDERATIONS: None; state law requires consistency between CCCSD boundaries and areas served. BACKGROUND: It is appropriate to detach seven properties (or portions of properties) from CCCSD's service area. These properties have been organized into two separate detachment areas. One of the detachment areas includes the Household Hazardous Waste Collection Facility and the 4737 Imhoff Place property, which are served by Mt. View Sanitary District, and the other detachment area is served by the City of Concord. The detachment areas are currently within CCCSD's Sphere of Influence (SOI). In a separate position paper, staff recommends that the detachment area on Imhoff Place be removed from CCCSD's SOI, as part of SOI Amendment 181. No SOI amendment is needed for the Concord detachment area since all of Concord is within CCCSD's SOL The general location of each detachment area is shown on Attachment 1. Staff has drafted a Resolution of Application requesting that LAFCO initiate detachment proceedings for the two areas described as follows: N: \ENVRSEC\Position Papers \Miyamoto- Mills\2009 \PP - Detachment 182 FINAL 10- 1- 09.doc Page 1 of 2 POSITION PAPER Board Meeting Date: October 1, 2009 subject. ADOPT A RESOLUTION OF APPLICATION REQUESTING THAT CONTRA COSTA LAFCO INITIATE PROCEEDINGS TO DETACH TWO AREAS FROM CENTRAL CONTRA COSTA SANITARY DISTRICT (CCCSD) - DISTRICT DETACHMENT 182 • Detachment Area 182 -1 is comprised of CCCSD's Household Hazardous Waste Collection Facility and the 4737 Imhoff Place property. These properties are served by Mt. View Sanitary District. • Detachment Area 182 -2 is comprised of six properties on John Glenn Drive and Concord Avenue. These properties are served by the City of Concord. District staff has concluded that detachment of each of the properties within Detachment Areas 182 -1 and 182 -2 is exempt from CEQA under District CEQA Guidelines Section 15319, since each would involve detachment of an existing lot with existing or exempt facilities. Adoption of the recommended resolution will establish the Board of Directors' independent finding that detachment of the properties is exempt from CEQA. RECOMMENDED BOARD ACTION: Adopt a Resolution of Application to initiate LAFCO proceedings for District Detachment 182, including the finding that the properties being detached in Detachment Areas 182 -1 and 182 -2 are exempt from CEQA under District CEQA Guidelines Section 15319. N: \ENVRSEC \Position Papers\Miyamoto- Mills\2009 \13P - Detachment 182 FINAL 10- 1- 09.doc Page 2 of 2 Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 1, 2009 No.: 4.g. Consent Calendar Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION ACCEPTING AN OFFER OF DEDICATION FROM KATKAR PROPERTIES LLC FOR AN EASEMENT IN THE UNINCORPORATED AREA OF WALNUT CREEK SHOWN ON THE MAP OF SUBDIVISION 8824, AND AUTHORIZING STAFF TO RECORD THE RESOLUTION WITH THE CONTRA COSTA COUNTY RECORDER (JOB 5888, PARCEL 2 *) Submitted By: Initiating Dept. /Div.: Pat Camorongan, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 9)-U 4 P �W . Camorongan J. Miy oto -Mills .Swanson A. Farrell ames elly, Gener ISSUE: A resolution of the Board of Directors is required to accept offers of dedication and to authorize staff to record documents. RECOMMENDATION: Adopt a resolution accepting an offer of dedication for an easement in the unincorporated area of Walnut Creek, and authorizing staff to record the resolution with the Contra Costa County Recorder. FINANCIAL IMPACTS: The new easement was acquired at no cost to the District. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The Board of Directors regularly accepts easements by resolution. The recommended resolution will accept an easement shown on the map of Subdivision 8824 required for a recent sewer extension off North Gate Road in the unincorporated area of Walnut Creek. Staff has reviewed the subdivision map and determined that it is in compliance with District standards. RECOMMENDED BOARD ACTION: Adopt a resolution accepting an offer of dedication from Katkar Properties LLC for an easement in the unincorporated area of Walnut Creek shown on the map of Subdivision 8824, and ao .,wYE G�pG\0 0 �7 �nnn o Q S V V CW EEN P 1'✓AWU7- AVE o 00� aye NORTH c m m po ITE VICINITY MAP N.T.S. authorizing staff to record the resolution with the Contra Costa County Recorder. `Easement parcel numbers are for internal job log use only. N: \ENVRSEC\Position Papers \Camorongan \5888_PP Katkar FINAL - 10- 1- 09.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 1, 2009 No.: 4.h. Consent Calendar Type of Action: ADOPT RESOLUTION Subject: ADOPT A RESOLUTION ACCEPTING A GRANT OF EASEMENT IN THE CITY OF SAN RAMON.FROM SHAPELL INDUSTRIES, INC., AND AUTHORIZING STAFF TO RECORD THE RESOLUTION WITH THE CONTRA COSTA COUNTY RECORDER (JOB 5860, PARCEL 3') Submitted By: Initiating Dept ✓Div.: Pat Camorongan, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: s/ P. Camorongan J. Mi moto -Mills C. Swanson A. Farrell am Kelly, Menefal Manager ISSUE: A resolution of the Board of Directors is required to accept grants of easements and to authorize staff to record documents. RECOMMENDATION: Adopt a resolution accepting a grant of easement and authorizing staff to record the resolution with the Contra Costa County Recorder. FINANCIAL IMPACTS: The new easement was acquired at no cost to the District. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: The Board of Directors regularly accepts easements by resolution. The recommended resolution will accept an easement required for a recent sewer extension off West Branch Road in the city of San Ramon. Staff has reviewed the easement documents and determined that they are in compliance with District standards. RECOMMENDED BOARD ACTION: Adopt a resolution accepting a grant of easement from Shapell Industries, Inc., in the city of San Ramon, and authorizing staff to record the resolution with the Contra Costa County Recorder. 'Easement parcel numbers are for internal job log use only. N: \ENVRSEC \Position Papers \Camorongan \5860_PP_GOE FINAL - 10- 1- 09.doc e� 9 I MO PROs ( i 0 CANYON F m BRANCH G f 1 RD 0C\y'\a WEST SITE BRANCH RD SAKI SAIROM VICINITY MAP N.T.S. Central Contra Costa Sanitary District /Aift BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 1, 2009 No.: 4.i. Consent Calendar Type of Action: AUTHORIZE AGREEMENT subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A,PROFESSIONAL SERVICES AGREEMENT WITH JDH CORROSION CONSULTANTS, INC. FOR CATHODIC PROTECTION SURVEY AND MISCELLANEOUS AS- NEEDED SERVICES FOR THE DISTRICT -WIDE CATHODIC PROTECTION PROGRAM Submitted By: Initiating Dept. /Div.: Wesley Adams, Assistant Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: (0 A. Far II ISSUE: Board of Directors' authorization is required for the General Manager to execute a professional services agreement in an amount greater than $50,000. RECOMMENDATION: Authorize the General Manager to execute a professional services agreement with JDH Corrosion Consultants, Inc. for a cathodic protection (CP) survey and miscellaneous as- needed services for a one -year period, with a cost ceiling of $60,000, and with two optional one -year extensions for a total amount of $180,000 if extended for two more years. FINANCIAL IMPACTS: The cost of the cathodic protection survey and miscellaneous as- needed services will be approximately $60,000 in the first year, with two optional one -year extensions for a total amount of $180,000 if extended for two more years. ALTERNATIVES /CONSIDERATIONS: An alternative would be to defer or have no project, which would adversely affect the protection levels for all structures and pipelines requiring cathodic protection. This is not recommended. BACKGROUND: The District is responsible for maintenance and operation of the treatment plant, pumping stations, collection system pipelines and reclaimed water facilities. These facilities and systems, along with other miscellaneous underground structures and pipelines (wastewater and recycled water), require continuous cathodic protection and monitoring. A system -wide cathodic protection survey of the collection system, treatment plant and reclaimed water was performed in 2007. At that time, a new computerized cathodic protection database was developed with an operation and maintenance manual and a strategy and implementation report. The strategy and implementation report identified facilities that needed urgent replacement and /or improvements. The critical work identified in the strategy and implementation report has been completed and some higher priority improvements are currently under design, with construction later in this fiscal year. N: \PESUP \Position Papers\Antkowiak \Cathodic Protection Final.doc 1 of 2 POSITION PAPER Board Meeting Date: October 1, 2009 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH JDH CORROSION CONSULTANTS, INC. FOR CATHODIC PROTECTION SURVEY AND MISCELLANEOUS AS- NEEDED SERVICES FOR THE DISTRICT -WIDE CATHODIC PROTECTION PROGRAM To ensure that the facilities, structures and pipelines are adequately protected and identify any facilities that may require additional cathodic protection, a detailed bi- annual system wide survey is required. The District staff monitors the impressed current rectifiers at the treatment plant and pumping stations, but doesn't have the expertise and /or specialized equipment to monitor over 600 anodes and test stations located throughout the entire District service area. A corrosion expert is required to perform a detailed bi- annual survey, to verify that the test equipment is properly connected to the protected facilities, and that the test stations are providing accurate readings of the field conditions, evaluate the results, and recommend necessary improvements to protect District pipes and structures from corrosion. JDH Corrosion Consultants, Inc. was selected to perform this work because it completed the 2007 District wide survey, developed the computerized database, and is intimately familiar with the District's cathodic protection facilities. A professional engineering services agreement with a cost ceiling of $60,000 for the first year, and two optional one -year extensions, has been negotiated with JDH Corrosion Consultants, Inc. The first year agreement includes the bi- annual District wide survey ($30,000), evaluation and import of the collected data into the computerized database ($6,000), and development of a three year plan for scheduling of an orderly replacement of spent or ineffective protective devices ($12,000). Allowance for additional investigation and pre- design of critical improvements is also included in the scope of work ($12,000). Based on the consultants' performance, the agreement may be extended for two additional one -year increments. The Cathodic Protection Systems Replacement is included in the 2009 -2010 Capital Improvement Budget on pages TP -76 to TP -77, CS -14 to CS -15 and RW -9 to RW -10. Staff has determined that there are adequate funds available and that the expenditure requirements are consistent with the Collection System, Treatment Plant and Reclaimed Water Programs. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301 since it involves minor alterations to an existing public facility. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a professional services agreement with JDH Corrosion Consultants, Inc. for a cathodic protection survey and miscellaneous as- needed services for a one -year period, with a cost ceiling of $60,000, and with two optional one -year extensions for a total amount of $180,000 if extended for two more years. N:\PESUP \Position Papers\Antkowiak \Cathodic ProtectionFinal.doc 2 of 2 6.a.1) and 6.a.2) Central Contra Costa Sanitary District October 1, 2009 TO: BOARD OF DIRECTORS VIA: JAMES KELLY, GENERAL MANAGER FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION /" "� DEBBIE RATCLIFF, CONTROLLER SUBJECT: REFINANCING OF EXISTING DEBT AND NEW BOND ISSUANCE FOR 2009 At the Board meeting on September 17, 2009, staff discussed the financial advantage to refinance the District's 1998 and 2002 outstanding debt and the need for bond financing of $30 million and /or large sewer service charge increases ($32 per year for the next two years) to fund needed capital projects. Staff was directed to bring back additional information regarding the refinancing of existing debt and the process of issuing $30 million in new debt. The two issues of refinancing existing debt and obtaining new debt will be separated for discussion and for Board voting on the October 15th Board agenda,and meeting. A presentation by staff, the Financial Advisor and Bond Counsel will be presented at the October 1st Board meeting addressing the following items. • Market Conditions • Refinancing of Existing Debt • Cost of Issuance and Underwriter's fee • New Debt Issuance for 2009 • Build America Bonds • Competitive versus Negotiated Sale • Reimbursement Resolution • Schedule • Recommendations Market Conditions Since the state passed its budget on July 28, 2009, local governments have seen steady improvement in the market's perception of California state and local government financings. In addition to market acceptance of the budget, demand for municipal bonds has increased. Also contributing to the improvement in the market for local government issuers has been the growth in the Build America Bond program created in the February Stimulus Legislation. Build America Bonds are taxable municipal bonds where the state or local issuer receives a 35% subsidy directly from the federal CA AAA 60 MUNI Yield curves — cwemca�c —imMUn ngoclX,e • -•�nr m>x n�,lcvce nIXI {,ill S 410 „III IX) ill LIXI 1,91 government. Taxable investors are now investing I in municipal bonds, reducing the available supply, _.' IV, '"` i °' "" 7Y, XV' ""' " »' r`"' "'"''i" y"' which has lowered the borrowing rates significantly for local governments. The chart to the right depicts the improved change in market conditions supporting debt financing at this time. Refinancing of Existing Debt Tom Lockard, Financial Advisor /Underwriter from Stone and Youngberg, who the District has used for the 1994 and 2002 debt issuances and the refinancing of the 1994 bonds in 1998, has provided staff with an analysis regarding the potential savings, due to favorable interest rates, associated with refinancing the current outstanding debt. The 1998 Refunding Revenue Bonds have an outstanding debt amount of $10.8 million at an interest rate of 4.1 to 4.7 percent. The proposed refinancing would yield an interest rate between 0.75 to 2.1 percent, projecting a net present value savings of approximately $615,000. The 2002 Revenue Installment Certificates have an outstanding debt amount of $13.6 million at an interest rate of 4.0 to 5.0 percent. The proposed refinancing would yield an interest rate between 0.75 to 3.7 percent, projecting a net present value savings of approximately $729,000. The projected savings, on a fully discounted net present value basis, for the refinancing of the two issues would total approximately $1,340,000. A copy of the financial analysis is available upon request. In addition, the District has used Mr. Charles "Chick" Adams, from Jones Hall, as Bond Counsel for the 1994, the refinancing of the 1994 bonds in 1998, and the 2002 debt issuance. Mr. Adams is independent of Stone and Youngberg and is the District's legal counsel for the sale of debt financing. Mr. Adams has provided a draft Resolution (green paper), attached, for the refinancing of both outstanding bond issuances. Mr. Lockard is recommending a negotiated sale for the refinancing of existing debt. Most, but not all, refinancing transactions are done by negotiated sale. The remaining term on each refinancing would remain the same, with the 1998 debt being paid in full in 2014 and the 2002 debt being paid in full in 2023. Refinanced debt is not eligible for Build America Bonds. The current refinancing can not close until December 1, 2009, which is ninety days from the March 1, 2010, call date of the outstanding bonds. Staff would work with Bond Counsel to stage the sale and closing to comply with IRS refinancing regulations. Cost of Issuance and Underwriter's Fee If the Board decided to obtain refinancing only, the cost to refinance would be $262,000, combining the two refinancing issuances. However, the refinancing can be combined with new debt should the Board decide to go forward with $30 million bond financing for 2009. If the Board directed staff to obtain additional debt financing, staff would recommend combining the refinancing and new debt issuances due to cost savings, approximately $130,000, for the cost of issuance. Staff is recommending the refinancing of the existing debt as it will save the District approximately $1.34 million in net present value and can be done as an individual transaction or combined with new debt, should the Board approve a 2009 debt issuance. New Debt Issuance for 2009 Staff is recommending a $32,757,000 debt issuance, netting to $30 million, with a twenty year repayment term to fund several large capital projects over the next three years. These projects include the CSO Facility Improvements, Sludge Loading Facility, Standby Power, Wet Weather Bypass and Pipeline Capacity Projects. Even with a bond issuance of this size, sewer service charge increases will be necessary to cover the costs of the capital program, pay for District operating costs and make annual debt service payments. A twenty year repayment term is recommended over a thirty year term due to the additional cost of interest. The twenty year repayment term would cost the District a projected $46.9 million to borrow the $32.8 million, a ratio of 1.5 times the original debt. The thirty year repayment term would cost the District $72.5 million, an additional $25.6 million, to borrow the $32.8 million, a ratio of more than two times the original cost. Draft Resolutions (blue paper) are attached authorizing the issuance and sale of Certificates of Participation for 2009. Certificates of Participation are similar to bonds, but as an enterprise District, the District can enter into long term debt by Board action. This is more efficient than issuing revenue bonds that are governed by the 1941 Revenue Bond Act, therefore staff is recommending the use of COPs as the financing vehicle. 41 In 1994, the Central Contra Costa Sanitary District Facilities Financing Authority was created to assist with the financing of new debt. A draft Resolution is attached from the CCCSD Facilities Financing Authority approving the issuance and sale of debt to finance various wastewater projects. Build America Bonds Section 4 of the resolution refers to Build America Bonds. Build America Bonds may be an option for part or all of the 2009 debt issuance. These are taxable bonds which are subsidized by the Federal government at a rate of 35% of the interest costs. This program is scheduled to expire at the end of 2010. The District would be required to request payment of the subsidy from the Treasury Department every six months. These bonds could be refinanced in the future. The District would rely on the advice of the underwriter whether it is feasible and in the best interest of the District to issue Build America Bonds. Currently, the Financial Adviser is estimating a $100,000 annual reduction in interest costs using Build America Bonds. This is based on the difference between the District's estimated long term cost of capital for tax exempt bonds and the government subsidized rate (Build America Bonds) on long term cost of capital for taxable bonds. The Build America Bond rate is approximately .38% lower than the rate for tax exempt bonds. The majority of Build America Bonds are issued through a negotiated sale. Competitive versus Negotiated Sale There are two types of bond sale approaches; competitive sale and negotiated sale. The District has done both in the past with the 1998 issue being sold in a negotiated sale and the 2002 issue being sold in a competitive sale. The significant cost in debt financing is the interest to be paid by the District to investors for purchasing the bonds. The interest rate is ever changing and is significantly influenced by state, national and worldwide events and is difficult to predict. The current market conditions are somewhat unstable, as advised by both the Financial Advisor and Bond Counsel. A competitive sale sets a day and time to take bids on securities from interested underwriters. The advantage of a competitive sale is the knowledge that the District received the lowest possible price as of that day and time the securities are sold. The disadvantage is that a significant event could raise interest rates. The likelihood of an event is increased in a unstable market. A negotiated sale engages an underwriter and pricing advisor and the securities are sold to the underwriter. A negotiated sale allows for pre- marketing and market timing to get the best possible interest rate. The independent pricing consultant works for the District on the negotiations with the underwriter to ensure the District received a fair interest rate based on market intelligence and comparison to comparable issues trading 4 in the primary and secondary bond markets. It is estimated at this time that the District will save an additional $30,000 for a negotiated sale. Mr. Lockard and Mr. Adams are recommending a negotiated sale based on the current volatility in the market, the ability to pre- market the sale, the chance that one or more refundings could be included in the offering based on market conditions, and the possibility of using Build America Bonds. This can reduce the risk to the underwriter, which in the current volatile market lowers their fees. Also, a negotiated sale is recommended on the refinancing of existing debt. Because the economics of these refundings are subject to market conditions, the ability to time the sale through negotiation is useful. The independent pricing consultant ensures the District received a fair interest rate. Staff requested District Counsel's review of the proposed negotiated sale reasoning to ensure the District's interests and needs are best served. Attached is Meyers Nave's response concurring with the negotiated sale proposal. Reimbursement Resolution At the Board meeting on September 17, 2009, the Board adopted a Resolution allowing the District to reimburse construction costs for the Standby Power and Solids Handling capital projects. The Resolution would only be implemented if the Board decided to obtain new debt financing. Schedule At the October 1, 2009 meeting, a presentation will be made by Mr. Lockard and bond counsel, Chick Adams from Jones Hall, to familiarize the Board with the process of issuing debt and to answer any questions the Board may have. At the October 15, 2009 Board meeting, the Board will be asked to consider adopting resolutions authorizing the refinancing of the 1998 and 2002 outstanding debt and the sale of $32.8 million in bonds with an October 21, 2009, or soon thereafter, sale. The refinancing would close. after December 1 to comply with IRS regulations. Recommendation At the Board meeting of October 15, 2009, position papers will be brought before the Board asking the Board to adopt resolutions to authorize the refinancing of existing debt, and to issue $30 million in new debt. Staff will be recommending the following six actions: 1. Adoption of the Refinancing Resolution, authorizing the refinancing of existing debt to take advantage of interest cost savings of approximately $1.34 million in net present value savings and net of costs. 2. Authorize a negotiated sale for the refinancing bonds. 5 3. Adoption of the new debt Resolutions, authorizing the sale of $32.8 million (net $30 million) new debt issuance for 2009. 4. Authorize the use of Build America Bonds, if favorable to the District. 5. Authorize a negotiated sale of the new debt issuance for 2009. 6. Approve packaging the refinancing and new debt ($57.2 million) together in order to reduce the cost of issuance (a projected savings of approximately $130,000). RESOLUTION NO. RESOLUTION OF THE BOARD OF DIRECTORS OF THE CENTRAL CONTRA COSTA SANITATION DISTRICT AUTHORIZING THE ISSUANCE AND SALE OF WASTEWATER REVENUE REFUNDING BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $25,000,000 TO REFUND OUTSTANDING 1998 BONDS AND 2002 CERTIFICATES OF PARTICIPATION, AND APPROVING RELATED DOCUMENTS AND ACTIONS WHEREAS, the collection, treatment and disposal of wastewater within the service area of the District (the "Wastewater System "), and in order to provide funds to finance improvements to the Wastewater System the District has previously issued the following obligations (collectively, the 'Prior Debt'): • Central Contra Costa Sanitary District 1998 Refunding Revenue Bonds in the aggregate principal amount of $25,335,000; and • Installment Sale Agreement dated as of June 1, 2002, between the Authority and the District, under which the District is obligated to pay installment payments in the aggregate principal amount of $16,565,000; and WHEREAS, in order to provide funds to refund the Prior Debt and thereby realize interest rate savings to the District, the Board of Directors of the District proposes to authorize the issuance and sale of 2009 Wastewater Revenue Refunding Bonds of the District in the aggregate principal amount of not to exceed $25,000,000 (the 'Refunding Bonds "), under the provisions of Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, commencing with Section 53570 of said Code (the 'Refunding Bond Law "); and WHEREAS, the Refunding Bonds will be secured by a pledge of and lien on the net revenues derived by the District from the operation of the Wastewater System; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitation District as follows: Section 1. Authorization of Refunding Bonds. The Board of Directors hereby authorizes the issuance of the Refunding Bonds in the maximum principal amount of $25,000,000, for the purpose of providing funds to refund the Prior Debt. The Refunding Bonds shall be revenue bonds which are payable from and secured by a pledge of and lien on the net revenues of the Wastewater System. The Refunding Bonds are authorized to be issued under the provisions of the Refunding Bond Law. Section 2. Approval of Financing Documents. The Board of Directors hereby approves each of the following financing documents in substantially the respective forms on file with the Secretary, together with any changes therein or additions thereto approved by the General Manager or the Director of Administration (each, an "Authorized Officer'), provided that the execution thereof by the General Manager shall be conclusive evidence of such approval: Indenture of Trust dated as of December 1, 2009, between the District and U.S. Bank National Association, as trustee, prescribing the terms and provisions upon which the Refunding Bonds are issued. Irrevocable Refunding Instructions given by the District to U.S. Bank National Association, as trustee for the Prior Debt, establishing an irrevocable escrow fund to be held, invested and administered for the purpose of refunding the Prior Debt. The General Manager is hereby authorized and directed for and in the name and on behalf of the District to execute the final form of each of the foregoing documents, and the Secretary is hereby authorized and directed to attest and affix the seal of the District to the final form of each of the foregoing documents. Section 3. Sale of Refunding Bonds. The Board of Directors hereby authorizes and directs the negotiated sale of the Refunding Bonds to Stone & Youngberg LLC as underwriter (the "Underwriter ") under the Bond Purchase Contract in substantially the form on file with the Secretary together with any changes therein or additions thereto deemed advisable by an Authorized Officer, whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. The Board of Directors hereby delegates to an Authorized Officer the authority to accept an offer from the Underwriter to purchase the Refunding Bonds and to execute the Bond Purchase Contract for and in the name and on behalf of the District. The amount of Underwriter's discount shall not exceed _% of the par amount of the Refunding Bonds. An Authorized Officer is hereby authorized and directed to execute the final form of the Bond Purchase Contract for and in the name and on behalf of the District. Section 4. Official Statement. The Board of Directors hereby approves and deems nearly final within the meaning of Rule 15c2 -12 of the Securities Exchange Act of 1934, except for permitted omissions, the preliminary Official Statement describing the Refunding Bonds in the form on file with the Secretary. Distribution of such Preliminary Official Statement by the Underwriter is hereby approved. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to such Preliminary Official Statement for the purpose of finalizing such document, and the execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such changes and additions. The Board of Directors hereby authorizes the distribution of the Final Official Statement by the Underwriter to prospective purchasers of the Refunding Bonds. The Final Official Statement shall be executed in the name and on behalf of the District by an Authorized Officer. Section 5. Engagement of Professional Services. The Board of Directors hereby approves the engagement of the law firm of Jones Hall, A Professional Law Corporation, to act as bond counsel and disclosure counsel to the District. The Director of Administration is hereby authorized and directed to execute an agreement with said firm on behalf of the District, in the form on file with the Director of Administration. Section 6. Official Actions. The President, the General Manager, the Director of Administration, the Controller and all other officers of the Board of Directors and the -2- District are each authorized and directed in the name and on behalf of the District to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate the issuance and sale of the Refunding Bonds and any of the other transactions contemplated by the agreements and documents approved pursuant to this Resolution. Whenever in this Resolution any officer of the District is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 7. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED this 15`" day of October, 2009, by the following vote: AYES: NOES: ABSENT: President of the Board of Directors of the Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Jones Hall, A Professional Law Corporation Bond Counsel to the District -3- RESOLUTION NO. RESOLUTION OF THE BOARD OF DIRECTORS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY APPROVING THE ISSUANCE AND SALE OF REVENUE INSTALLMENT CERTIFICATES IN THE MAXIMUM PRINCIPAL AMOUNT OF $ TO FINANCE VARIOUS WASTEWATER PROJECTS FOR THE CENTRAL CONTRA COSTA SANITARY DISTRICT, AND APPROVING RELATED DOCUMENTS AND ACTIONS WHEREAS, the Central Contra Costa Sanitary District (the "District') presently owns and operates facilities and property for the collection, treatment and disposal of wastewater within the service area of the District (the "Wastewater System "); and WHEREAS, the Board of Directors of the District wishes to provide financing for certain capital expenditures relating to the Wastewater System, consisting generally of (collectively, the "Projects "), and WHEREAS, in order to provide financing for the Projects, the District has requested that the Central Contra Costa Sanitary District Facilities Financing Authority, a nonprofit public benefit corporation duly organized and existing under the laws of the State of California (the "Authority "), enter into an Installment Sale Agreement (the "Installment Sale Agreement") with the District under which the Authority agrees to finance the acquisition, construction and installation of the Projects and to sell the completed Projects to the District in consideration of the payment by the District of semiannual installment payments as the purchase price of the Projects (the "Installment Payments "); and WHEREAS, in order to raise funds for the Projects, the Authority proposes to assign its rights under the Installment Sale Agreement to U.S. Bank National Association, as trustee (the 'Trustee "), including its rights to receive Installment Payments, and the Authority, the Trustee and the District propose to enter into a Trust Agreement under which the Trustee will execute and deliver 2009 Wastewater Revenue Certificates of Participation in the aggregate principal amount of not to exceed $ (the "Certificates ") representing the direct, undivided fractional interests of the owners thereof in the Installment Payments; and WHEREAS, the Authority has been formed for the purpose of providing financial assistance to the District in connection with the acquisition, construction and installation of facilities relating to the Wastewater System; and WHEREAS, the Board of Directors wishes to authorize the issuance and sale of the Certificates at this time for the purpose of providing financing for the Projects; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District Facilities Financing Authority as follows: Section 1. Approval of Financing Plan and Related Documents. The Board of Directors hereby approves the issuance and sale of the Certificates in the maximum principal amount of $ for the purpose of providing funds to finance the Projects. To that end, the Board of Directors hereby approves each of the following financing documents in substantially the respective forms on file with the Secretary, together with any changes therein or additions thereto approved by the Executive Director or the Treasurer (each, an "Authorized Officer "), provided that the execution thereof by the Executive Director shall be conclusive evidence of such approval: Installment Sale Agreement between the District and the Authority, under which the Authority agrees to acquire, construct and install the Projects and to sell the completed Projects to the District in consideration of semiannual Installment Payments to be made from the net revenues of the Wastewater System. Trust Agreement among the District, the Authority and the Trustee, whereby the Trustee agrees to execute and deliver the Certificates and to apply the proceeds thereof to accomplish the purposes of the financing, and the Authority assigns to the Trustee certain of its rights under the Installment Sale Agreement, including its right to receive the Installment Payments. The Executive Director is hereby authorized and directed for and in the name and on behalf of the Authority to execute the final form of each of the foregoing documents, and the Secretary is hereby authorized and directed to attest and affix the seal of the Authority to the final form of each of the foregoing documents. Section 2. Official Actions. The President, the Executive Director, the Treasurer, the Secretary and all other officers of the Board of Directors and the Authority are each authorized and directed in the name and on behalf of the Authority to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate the issuance and sale of the Certificates and any of the other transactions contemplated by the agreements and documents approved pursuant to this Resolution. Whenever in this Resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. -2- PASSED AND ADOPTED this I" day of October, 2009, by the following vote: AYES: NOES: ABSENT: COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District Facilities Financing Authority, County of Contra Costa, State of California Approved as to Form: Jones Hall, A Professional Law Corporation Bond Counsel to the District -3- President of the Authority Board of the Central Contra Costa Sanitary District Facilities Financing Authority, County of Contra Costa, State of California RESOLUTION NO. RESOLUTION OF THE BOARD OF DIRECTORS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AUTHORIZING THE ISSUANCE AND SALE OF WASTEWATER REVENUE CERTIFICATE OF PARTICIPATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF $ TO FINANCE VARIOUS WASTEWATER PROJECTS, AND APPROVING RELATED DOCUMENTS AND ACTIONS WHEREAS, the Central Contra Costa Sanitary District (the "District ") presently owns and operates facilities and property for the collection, treatment and disposal of wastewater within the service area of the District (the "Wastewater System "); and WHEREAS, the Board of Directors of the District wishes to provide financing for certain capital expenditures relating to the Wastewater System (the "Projects "), and WHEREAS, in order to provide financing for the Projects, the District has requested that the Central Contra Costa Sanitary District Facilities Financing Authority, a nonprofit public benefit corporation duly organized and existing under the laws of the State of California (the "Authority "), enter into an Installment Sale Agreement (the "Installment Sale Agreement ") with the District under which the District agrees to finance the acquisition, construction and installation of the Projects and to sell the completed Projects to the District in consideration of the payment by the District of semiannual installment payments as the purchase price of the Projects (the "Installment Payments "); and WHEREAS, in order to raise funds for the Projects, the Authority proposes to assign its rights under the Installment Sale Agreement to U.S. Bank National Association, as trustee (the "Trustee "), including its rights to receive Installment Payments, and the Authority, the Trustee and the District propose to enter into a Trust Agreement under which the Trustee will execute and deliver 2009 Wastewater Revenue Certificates of Participation in the aggregate principal amount of not to exceed $ (the "Certificates ") representing the direct, undivided fractional interests of the owners thereof in the Installment Payments; and WHEREAS, the Board of Directors wishes to authorize the issuance and sale of the Certificates at this time for the purpose of providing financing for the Projects; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: Section 1. Approval of Financing Plan and Related Documents. The Board of Directors hereby approves the issuance and sale of the Certificates in the maximum principal amount of $ for the purpose of providing funds to finance the Projects. To that end, the Board of Directors hereby approves each of the following financing documents in substantially the respective forms on file with the Secretary, together with any changes therein or additions thereto approved by the General Manager or the Director of Administration (each, an "Authorized Officer'), provided that the execution thereof by the General Manager shall be conclusive evidence of such approval: Installment Sale Agreement between the District and the Authority, under which the Authority agrees to acquire, construct and install the Projects and to sell the completed Projects to the District in consideration of semiannual Installment Payments to be made from the net revenues of the Wastewater System. Trust Agreement among the District, the Authority and the Trustee, whereby the Trustee agrees to execute and deliver the Certificates and to apply the proceeds thereof to accomplish the purposes of the financing. The General Manager is hereby authorized and directed for and in the name and on behalf of the District to execute the final form of each of the foregoing documents, and the Secretary is hereby authorized and directed to attest and affix the seal of the District to the final form of each of the foregoing documents. The schedule of installment payments attached to the Installment Sale Agreement shall correspond to the payments of principal and interest represented by the Certificates, to be determined upon the sale thereof as set forth in Section 3. Section 2. Pledge of Property Tax Revenues. The Board of Directors hereby pledges of all revenues received by the District from the levy of ad valorem property taxes within the District, to the payment of the District's obligations under Installment Sale Agreement. Such pledge shall constitute a first lien on the ad valorem property tax revenues of the District, and the District's obligations under the Installment Sale Agreement shall be payable from ad valorem property tax revenues before they are paid from any other source of revenues of the District. The Installment Sale Agreement shall include appropriate provisions implementing the pledge made under this Section 2. Section 3. Sale of Certificates. The Board of Directors hereby authorizes and directs the negotiated sale of the Certificates to Stone & Youngberg LLC as underwriter (the "Underwriter') under the Certificate Purchase Contract in substantially the form on file with the Secretary together with any changes therein or additions thereto deemed advisable by an Authorized Officer, whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. The Board of Directors hereby delegates to an Authorized Officer the authority to accept an offer from the Underwriter to purchase the Certificates and to execute the Certificate Purchase Contract for and in the name and on behalf of the District. The weighted average rate of interest represented by all of the Certificates (taking into account any original issue discount on the sale of the Certificates and taking into account the amount of any tax credit payment received by the District in respect of Certificates issued as Build America Bonds under Section 4) shall not exceed 6.50% and the maximum amount of Underwriter's discount on the sale of the Bonds shall not exceed 1.00% of the par amount of the Certificates. An Authorized Officer is hereby authorized and directed to execute the final form of the Certificate Purchase Contract for and in the name and on behalf of the District. Section 4. Build America Bonds Designation. The Board of Directors hereby directs an Authorized Officer to determine, based on advice from the Underwriter, whether it is feasible and in the best interests of the District to deliver the Certificates in -2- the form of 'Build America Bonds" under and within the meaning of Section 54AA of the Internal Revenue Code of 1986 (the "Tax Code "). If an Authorized Officer determines that it is in the best interests of the District to issue the Certificates in such form, an Authorized Officer is authorized to make the necessary election in the name and on behalf of the District as required by the Tax Code, and to approve such amendments to the documents approved under this Resolution as may be required to effectuate such issuance. Section 5. Official Statement. The Board of Directors hereby approves and deems nearly final within the meaning of Rule 15c2 -12 of the Securities Exchange Act of 1934, except for permitted omissions, the preliminary Official Statement describing the Certificates in the form on file with the Secretary. Distribution of such Preliminary Official Statement by the Underwriter is hereby approved. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to such Preliminary Official Statement for the purpose of finalizing such document, and the execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such changes and additions. The Board of Directors hereby authorizes the distribution of the Final Official Statement by the Underwriter to prospective purchasers of the Certificates. The Final Official Statement shall be executed in the name and on behalf of the District by an Authorized Officer. Section 6. Engagement of Professional Services. The Board of Directors hereby approves the engagement of the law firm of Jones Hall, A Professional Law Corporation, to act as bond counsel and disclosure counsel to the District. The Director of Administration is hereby authorized and directed to execute an agreement with said firm on behalf of the District, in the form on file with the Director of Administration. Section 7. Official Actions. The President, the General Manager, the Director of Administration, the Controller and all other officers of the Board of Directors and the District are each authorized and directed in the name and on behalf of the District to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate the issuance and sale of the Certificates and any of the other transactions contemplated by the agreements and documents approved pursuant to this Resolution. Whenever in this Resolution any officer of the District is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 8. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. -3- PASSED AND ADOPTED this 15'h day of October, 2009, by the following vote AYES: NOES: ABSENT: COUNTERSIGNED: Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Jones Hall, A Professional Law Corporation Bond Counsel to the District 10 President of the Board of Directors of the Central Contra Costa Sanitary District, County of Contra Costa, State of California m e y e r s I n a v e riback silver & wilson professional law corporation Samuel A. Sperry Attorney at Law 510.808.2000 September 24, 2009 Ms. Debbie Ratcliff Central Contra Costa Sanitary District Re: September 9, 2009 Letter from Stone & Youngberg; 2009 Financing Program, Negotiated vs. Competitive Bond Sale Dear Debbie: As requested, we have reviewed the September 9, 2009, letter from Tom Lockard, Managing Director of Stone & Youngbert, and offer the following comment. Our experience in the matter of negotiated vs. competitive bond sale methods confirms our concurrence with the contents of Mr. Lockard's letter, and we recommend that the District utilize a negotiated bond sale procedure, with appointment of a bond underwriter, for the District's upcoming bond sale. Very truly yours, y Samuel A. *erl� cc: Kent Alm, Esq. 55512th Street, Suite 1500 1 Oakland, California 94607 1 let 510.808.2000 1 tax 510.444.1108 I www.meyersnave.com OAKLAND • SAN LEANDRO • SANTA ROSA • SACRAMENTO • SAN FRANCISCO • LOS ANGELES (P. a.1) Z) Board Item 6.a.1) Refunding Revenue Bonds Board Item 6.a.2) $30 Million New Debt 1998 REFUNDING REVENUE BONDS Original Amount $25,335,000 Remaining Amount 59,920,000 Fears Left Until Maturity 5 Current Interest Rate 4.25%-4.7% Proposed Refinancing Interest Rate .75%-2.1% Cost of Issuance 3125,000 Underwriter Discount $43,425 NET PRESENT VALUE SAVINGS $615,000 2002 CERTIFICATES OF PARTICIPATION Original Amount $16,565,000 Remaining Amount $12,930,000 Years Left Until Maturity 14 Current Interest Rate 4%-5% Proposed Refinancing Interest Rate .75%-3.7% Cost of Issuance $125,000 Underwriter Discount $61,600 NET PRESENT VALUE SAVINGS $729,000 TOTAL SAVINGS REFINANCING $1.3 MILLION 2 REFINANCING SCHEDULE October 12 Finance Committee Meeting to Consider Refinancing October 15 Board Meeting to Authorize Refinancing (Consider &Adopt Resolution) October 20 Pre- Pricing October 21 Sale December 1 Pre -Close December 2 Close (90 Days from the Callable Date) Board Item 6.a.1) Refunding Revenue Bonds. Board Item 6.a.2) $30 Million New Debt 3 Current Market Conditions: Interest Rate History • -$63 million CIP expenditures through FY2012 B"' "", ss.ae.a T. a... uu „an Pro ecu 1VmW,Reotl WU, Sy,nuLn 1499ry SymuLe�'We nl I FY2009 -IO 9ludgc landing FacOiry }I,]JSOW 9hndby Pomm New 2009 Debt Issuance: Capital Improvement Program • -$63 million CIP expenditures through FY2012 u Fund $30 million from bond proceeds (- -$32,755,000 in debt) E.6— ..d Pro ecu Cost FY2009 -IO 9ludgc landing FacOiry }I,]JSOW 9hndby Pomm 3,91Q01%I HklR�lmpm.mnmp 6P{DW CSO F¢ilid 145W.IWM1 sw.mw: sxG,us,aao Przota -u wet wenn,m nypwY: 52.vxtaln n -line Gacmem Acquislim I,aq,WO Collation Syrrm, Renowdon gxn,axl Tmemmr Plant ltiping Renoweion ; ?W,0(I(1 5ub,aul: n2,490,000 PY2Lll -12 Stiamic Lnprovmrtnn $G$Sg0a1 conalionaarem ne.oweo,l G,uoo,lwu Gpri,y Rnwn II,IW,IIW Subtomb $ So— 4nml Cm,m C.na&n, G.mu 7 i 24,130,400 TOTAL: 942,8]5,000 i New 2009 Debt Issuance Assumptions ., ;\a2/AAA underlying rating • Project fund sized to net $30 million • Debt Service Reserve Fund equal to Maximum .annual Debt Service • level annual debt service ❑ 20 -year financing First interest payment date: March 1., 2010 Final matu.ty: September 1, 2029 Estimated Sources Par Amount $ 29,525,000 Premium $ 2,932,000 $ 32,757,000 Estimated Uses Project Fund $ 30;000,000 Debt Service Reserve Fund $ 2,515,000 Cost of Issuance $ 239,000 $ 32,757,000 clean an.,a Iwwual aaaornaar,a� :mlla:aaurn.,. mr cam= aama. m. �w�R.��.,cla,�.m,.wma�arve�r".�w �nl.r epm��, .,p<��.., ,.,on,na,„m Ik sa.asaq a New 2009 Debt Issuance: CCCSD Debt Profile & Sewer Service Charges Impact eeuaW CaoR .,d S .,m i f C. l t]branndingnnd Prupmed Ddlr ScrvimLowaye y MOOS Ne: Revenue: -talk md1ian -- aebl9erviceernerye: -baa wv w ivl,nss`c y Im /]I SSc 1fl r M 9110 3011 dOL 3111)Lli IDIS J114 3111 ^_UIB 1119 3UM1 L31 9:? 321 JI& 2011 3031 lU3l 3@fl 911 31111 11W., As1mal6n lup IIylO.1 a.. 01— dAU IS 9 5 Build America Bonds • What Are Build America Bonds (BABs)? • Created by Stimulus legislation to spark municipal markets • Taxable bonds with a federal subsidy of 35% of the interest cost • Direct Payment: issuer receives cash payment over fife of bonds • Program expires at end of 2010 • More than 350 issues totaling —$30 billion (0 • Taxable Investors • Bond funds, insurance companies, pension funds, individuals • Broader audience than typical municipal bond buyers • Investor Preference for liquidity u Large par amounts, highly- rated, well known names (1) a—gh sp�om��vao lu Do BABs Make Economic Sense? • Depends on market conditions at time of sale and each unique credit • Benefit likely to be on longer maturities r-1 Mvkn Ibm 6,nn HOt. fla¢tl feLFmn T., Pwtl I i Competitive versus Negotiated Sale: Municipal Bond Sale Options • Competitive Date and time set for sale of of Bonds i 1 bghest price, lowest yield purchases • Underwriter not involved until bid • No pre - marketing to investors • Lower Due Diligence standards • Negotiated Sale Terms negotiated ..1 Underwriter involved early in the process j high Due Diligence standu'd _1 Pre - marketing to investors rv131W Ird %1 • ,Market tuning • I Indenvrisr(s) liable for unsold balance • Flexibility to issue Build Amearn Bonds for new money financings x (1) —P— wonvmmd mmunPJ WMnmmre hrW ryye for 6ni 11 mmWrof dllP. Nenmvrt�l u4�Jm m�IWe pvrm Plaemmn lyurz� 1%wnwn FWUeWI 2008 National Market (By Type of Sale)01 amF.m.. Financing Team Central Contra Cnstl Sanitary Di't'i, t l.rrner' Randy Musgraves Director ofAdmfnotroNon Debbie Ratelifi Cmrtraller l-il`d Financial Prioxg CamiMxnl Dan C. iie)'SAS (•IPY4 !limit! Cannel Kent Al. w )ones Hog Dondl Din'lumn Cormn/ Chick Adams Chd• Lynch Stone & Youngberg /nrrrlmrxl Dxn.f; Tum Lucknrd Bridpet Kntz LIv Bavk TruxtNA, Currtxl 7imlre Marianne Dias 7 Proposed Financing Schedule Thursday, October 1 Informational Presentation Monday, October 12 Finance Committee Meeting to Consider Financing Plan 'Thursday, October 15 Board Meeting to Authorize Financing (Consider and Adopt Resolutions) I ndap, October 16 Print POS Tuesday, October 20 Pre- Pricing Wednesday,: October 21 Sale Tuesday, December 1 Pre -close ()ones Hall) Wednesday, December 2 Close ()ones Hall) October 15, 2009 Board Meeting: Recommendations Refnancirte 1) Adopt Refinancing Rewlution 2) Aurhorize Negotiated Salc New Debt 1) Adopt New Debt Resolutions ($32.8 Million) a) CCCSD b) CCCSD Facilities- Financing Authority 2) ,Authorize Negotiated Sale 3) Authorize Build America Bonds, if Favorable 4) Approve Combining New Debt and Refinancing to Reduce Cost of Issuance ($130,000 Savings) is 0 6.a.3) Central Contra Costa Sanitary District October 1, 2009 TO: BOARD OF DIRECTORS VIA: JAMES KELLY, GENERAL MANAGER pMM FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION /` DEBBIE RATCLIFF, CONTROLLER / SUBJECT: CALIFORNIA COMMUNITIES PROPOSITION 1A SECURITIZATION PROGRAM UPDATE As part of the State's budget crises resolution, 8% of property tax will be borrowed from local governments throughout the state for fiscal year 2009 -2010. To help ease the pain, the state proposed to debt finance the amount local governments will not receive through property tax distribution, and provide the funds to the entities from the debt financing. The state is proposing to sell the bonds on their credit and pay the principal and interest for the funds, in 2013: Thus local agencies would not experience a decrease in revenue in fiscal year 2009 -2010. There is some discussion that the bond sale may not provide 100% of the lost property tax revenue to the entities. Therefore, a proration of funds may occur. Attached is a summary of the program and presentation made by California Communities, the Joint Powers Authority authorized to sell the bonds. On Friday, September 11, 2009, the "clean -up" legislation for the Proposition 1A Receivables Financing Program (also identified as the Securitization Program), SB 67, failed to be enacted prior to the adjournment of the Senate. SB 67 would correct several technical aspects of AB 15 (the original Proposition 1 A legislation enacted in July of this year) and allow the financing to proceed on a tax - exempt basis this November. The Proposition 1A Receivables Financing Program is structured assuming that SB 67 will become law. California Communities remains hopeful that a solution can be found in order to have SB 67 enacted within the next few weeks. Agencies are encouraged to enroll now to meet a November sale of bonds. There are pros and cons for the District pursuing its $1 million loss of property tax through the additional state debt financing. If the District chooses to pursue State reimbursement this year, the District must pass a resolution by October 15th (the next Board meeting) requesting to participate. H1Board Position Papers \Memo to Finance Comm re Securitization Program 9 16 09.doc Pros • The District can obtain borrowed property tax funds upon the sale of the bonds. • The District does not pay any principal or interest for the funds /bonds. Cons • The tax payers may pay additional interest for debt financing. • The District would lose interest to be paid by the State. • If the State did not fully pay back the funds, it would likely be difficult for the State to take more property tax revenue from local government in the future. Recommendation Staff is recommending not pursuing the debt financing from the State. • The taxpayers may pay additional interest for debt financing. • The State would be required to payback the $1 million with interest, likely more than received from LAIF. If the State did not fully pay back the funds, it would likely be difficult for the State to take more property tax revenue from local government in the future. Staff is seeking Board direction regarding applying for the funds. H1Board Position Papers \Memo to Finance Comm re Securitization Program 9 16 09.doc C 'p� AL R m . UFOR N COMMUNI'I CALIFORNIA COMMUNITIES PROPOSITION 1A SECURITIZATION PROGRAM SUMMARY PROPOSITION 1A SECURITIZATION PROGRAM • The emergency suspension of Proposition 1A was passed by the Legislature and signed by the Governor as ABX4 14 and ABX4 15 as part of the 2009 -10 budget package • The legislature is currently reviewing a clean -up bill, SB67 which implements the Proposition 1A Securitization Program • The Proposition 1A Securitization Program provides all program participants 100% of its reduced property tax allocations for the 2009 -2010 Fiscal Year • California Statewide Communities Development Authority, known as "California Communities," is a joint powers authority created in 1988 to enable local government and eligible private entities access to low -cost, tax - exempt financing • Each participating local agency will sell their state repayment obligation to California Communities • California Communities will issue tax - exempt bonds and provide each local agency with the cash proceeds in two equal installments, on January 15, 2010 and May 3, 2010 (to coincide with the dates that the State will be shifting property tax from local agencies) • No cost to participating local agencies as all interest and issuance costs will be paid by the state • Participating local agencies will have no obligation on the bonds and no credit exposure to the State • Bondholders will be paid principal and interest by the State on the bonds' interest payment dates and at maturity • The bonds will mature between June 6 and 13, 2013 H: \Board Position Papers \Prop 1A Securitization Program 10 1 091doc STATE REPAYMENT OF PROPERTY TAX If local agencies choose not to participate in the CSCDA securitization, they will receive a rate of interest to be determined by the Department of Finance, and will be paid back by the State between June 6 and June 13, 2013 (or earlier at the State's discretion) , per the clean up bill Receive withheld property tax repayment plus interest from the state. Interest rate will be set by the Director of Finance on or before September 28, 2009. The interest rate must be no less than the current Pooled Money Investment Account rate, but no higher than 6% The county auditors will be calculating the.8% reduction amounts for purposes of the borrowing ENROLLMENT • Each local agency is not committed to the program until all executed documentation is returned to the finance team on or prior to November 6, 2009 • The Board must approve participation HARDSHIP APPLICATION • For those local agencies experiencing extreme fiscal hardship, upon written request, the Director of Finance may decrease the reduction amount • Prior to submitting a hardship application, local agencies must first submit a completed application to the California Communities Proposition 1A Securitization Program • The Director of Finance may permit a reallocation of the property tax reduction amount only to the extent that the agency did not receive bond proceeds • Decreased amounts cannot exceed 10% per county • Decreased amounts are reallocated on a pro rata basis to remaining local agencies in respective county Extreme fiscal hardship may include local agencies: • in bankruptcy proceedings • that would be forced to seek bankruptcy protection • that do not have sufficient reserves o that would not be able to provide a basic level of core services This document is a summary taken from the Webinar presentation provided on September 10 and 11, 2009. HABoard Position Papers \Prop 1A Securitization Program 10 1 OgWoc JA 4 CSA News October 1. 2009 California Communities Proposition 1A Loan Securitizaton Program The California Communities Proposition 1A Loan Securitization program is still moving forward awaiting the passage of SB 67 — the clean -up language which passed the Assembly on the final day of the session but failed in the Senate. Senate President Darrell Steinberg has committed to the League of California Cities, California State Association of Counties (CSAC) and the California Special Districts Association (CSDA) that the Senate will come back into session the week of October 12 to wrap up a number of items, including SB 67. It appears that SB 67 will pass at that time and all outstanding issues relating to the Prop 1 A program will be resolved. If your district is interested in the Prop to Loan Securitization Program all information can be found on the California Communities Web site — www.cacoiTimunities.org. CASA will continue to update you on any Prop 1A related issues. Attorneys, mark your calendars! CASA Fall Attorneys Cori, rnittee Meeting Whc Friday, November 6, 2009 10 a.m. to 2:30 p.m. 1/here Bay Area Boy Scout Council 1001 Davis Street San Leandro, CA 94577 Close to the Oakland International Airport, SART, free parking os r $75 per person Coffeeites service and light buffet lunch with vegetarian options will be served CASA certifies that this activity will provide 4.5 hours in MCLE credits. Oea< 1 rre Register by Monday, November 2 For more information and registration, click here. Important poirds: • All enrollment forms are available on the California communities Web site • Once you enroll, your agency will receive documents from their bond counsel for execution • Once you submit your documents, your agency will be considered a program participant in the November 6, 2009 issue date • There is no cost t o local agencies to participate in the progmm - you receive 100% of your borrowed property taxes • Payment will be received in two installments - approximately January 15, 2010 and May 1, 2010 • If you submit documentation to participate and determine that your agency does not want to move forward, you will be responsible for letting California Communities know you wish to withdraw prior to November 6, 2009 • The State set the interest rate for those agencies which do not sell their receivables in the Prop to program at 2% "Tax Commission" Releases Formal Report: Governor Applauds Effort of Group and Promptly Declares a Special Session on Tax Reform Ata pressconference atthe State Capitol Tuesday, Sept. 29, the governor, flanked by the Chair and representatives of the "Governor's Commission on the 21st Century Economy' (also known as the "Governor's Tax Commission "), formally presented a series of recommendations the Commission has been developing since early 2009. The 14 member bi- partisan commission was appointed by the governor and the Assembly Speaker Click to view the and Senate President pro Tem to look at Commissions Report issues of tax volatility and revenue stability. Twice the Commission asked the governor for an extension, which was subsequently granted, in order to more adequately research reform options for the state's antiquated tax system. Read more. n a a n J n d 0 0 a v 0 D r, �i Climate Change (CC) continues to dominate the "air- scape" with the implementation of AB 32 currently underway, the wastewater community may be profoundly impacted by decisions being made by CARB, CPUC, CEC, and others. The California Wastewater Climate Change Group (CWCCG) is forging ahead on CC issues, striving to monitor and influence 13 priority project areas of more than 70 Scoping Plan Measures for which the Air Resources Board (ARB) seeks to adopt regulations. In August, CASA joined the California Wastewater Climate Change Group (CWCCG) and Jackie Kepke, CH2M Hill has been hired as the Climate Change Program Manager. Members interested in receiving regular e-mail updates about CC issues can join the Climate Change Listsery by clicking subscribe. J is The CWCCG is a partnership between SCAP, BACWA, CVCWA, and CASA. The contract is administered by CASA with direction from a Steering Committee (SC) made up of one representative from each organization (Kris Flaig - City of LA for SCAP; Stephanie Chang — EBMUD for BACWA; Vicki Fry— Sacramento Regional for CVCWA; and Greg Kester for CASA). The actual work is chosen by a Policy Committee (PC) who sets the direction of the CWCCG. The PC now consist of the five (5) major SCAP donors, two (2) major CVCWA donors, five (5) designated BACWA members, and three (3) designated CASA members Bobbi Larson, (CASA) Dan Carlson (City of Santa Rosa) and Jim Clark (Black and Veatch), in addition to the SC. Priority issues include: Cap & Trade, Renewable Energy Portfolio Standards (RPSs), federal and State legislation, and the ARB Low Carbon Fuel Standard (LCFS), implementation of CEQA greenhouse gas (GHG) thresholds for monitoring and reporting, along with the CWCCG structure and communications. Regulatory Input on Federal Legislation to Amend Statutes Related to Safe Drug Disposal Product Stewardship Institute Regulations Workgroup News & Events 18 Days to Keep a Commitment. Reasons Why the California State Senate Must Pass SB 67 by October 15 Voluntary Reporting Process for the 2009 Water Sector-specific Security Measures is Now Open Solar Work Almost Complete with Truckee Sanitary Distinct Oct 23 - Ethics: The Public Lawyer s Role in Ensuring the Inteenty of Public Institutions Presented by the Municipal Law Institute of the League of California Cities and UC Hastings Center for State and Local Government Law Nov 6 - CASA Fall Attomeys Committee Meeting CEC Renewable Energy Survey The CEC is conducting a survey of renewable energy development potential co-located with water and wastewater systems. This survey is being conducted in partnership with SCAP, as well as CASA, BACWA, ACWA, MWD, SCE and PG&E. The results of the survey will be used to understand the current potential for additional renewable development in the water and wastewater sectors in California. Survey results will be shared with various state agencies so that those agencies have a better understanding of the ongoing voluntary efforts by water and wastewater agencies to incorporate renewable energy and energy efficiency practices into their business operations and to further promote such efforts. The results will also be available to all participants and the final white paper will be published on the Energy Commission's Web site. The Renewable Energy Development Survey for Water and Wastewater Agencies can be found here. It has been requested that the survey be completed by September 30. But if you have not yet completed the survey, please still do so despite the deadline. We strongly encourage members of the partnership to participate, as this data will help promote legislation and policies that support the development of renewable energy facilities at POTWs. If you have any questions about this survey or the use of information gathered as part of this process, please contact Lorraine White (CEC Senior Energy Specialist) at 916 - 6544075 or her assistant, Drew Atwater, at 916 -651 -2077. Board Meeting of October 1, 2009 Written Announcements: Board Follow -Up Items a) Las Lomitas Agenda Item 6.a.4) In 1948, the developer of the Las Lomitas Subdivision Unit No. 1 (near the Camino Tassajara, Ramona Road and Gil Blas Road area of Danville) constructed a sewage collection and treatment system to serve the development. At that time, no sewer easements or rights of way were recorded for the sewers that were built in the backyards of most lots. In 1955, the treatment system was abandoned, and the District annexed the subdivision and connected its sewers to the San Ramon Valley public sewer system. The District has operated and maintained the system ever since. In 1977, the Board adopted and recorded an "easement declaration" resolution stating that the District has the right to operate and maintain the sewer lines in their current location. In early 2008, staff concluded that the 1977 resolution did not clearly identify the specific subdivision lots affected. In February 2008, the Board addressed this issue by adopting an amendment to the 1977 resolution that included a list of the Assessor's Parcel Numbers of all affected lots. All of the then current property owners of affected lots were notified by letter of the proposed Board action prior to the Board meeting. After the Board action, another letter including a copy of the recorded resolution was sent to each of the affected property owners to ensure that they received actual notice of the District's rights. There was a Board Member request to have staff report back to the Board regarding potential realignment of the pipes and possibly using a CAD project to pay for it. At the time this request was made, the District had not inspected these sewers. Over the past two years, the Capital Projects Division evaluated the condition of the backyard sewers to determine whether renovation or relocation would be advisable. Television inspection and field reconnaissance indicated that the existing sewers are serviceable, and that renovation or replacement would not be necessary at this time. Staff Meetings /Events b) Service Awards Luncheon The Service Awards Luncheon for employees celebrating their anniversary with the District will be held in the District Multi- Purpose Room on Wednesday, October 28, 2009, starting at 11:45 a.m. Please reserve by October 9, 2009, through Human Resources. c) Coordination Meeting with City of Concord On September 18, 2009, a coordination meeting was held between District staff and the new leadership at Concord, including Alex Pascual, Director of Public Works and Engineering Services; and Mario Camorongan, Assistant City Engineer. The group briefly reviewed all of the current agreements and issues with City of Concord. An updated key contact list was developed based on the new organization at the City of Concord. The meeting was very congenial and all agreed to continue to work cooperatively on issues of mutual concern and benefit. Project Updates d) ADA & General Improvements, DP 8214 The Permit Counter is scheduled to re -open on Monday, September 28, 2009. The final punchlist items for the first floor restroom and painting in the stairwell, from the handrail replacement, were completed on Friday, September 25, 2009. The Reception Counter remodel is scheduled from September 28 to October 16, 2009. At this time, the hi -lo drinking fountain, kick - plates, and door -stops for the breezeway doors will also be installed. General Updates e) Environmental Protection Agency Delays Decision on Regulating Sewage Sludge as Solid Waste Sewage sludge is regulated as a byproduct of the wastewater treatment process and not a solid waste, and is currently regulated under the Clean Water Act, Part 503. The United States Environmental Protection Agency (USEPA) Office of Resource Conservation and Recovery (ORCR) is in the process of determining if sewage sludge should be regulated as a solid waste. The ORCR recently received a court- approved extension of the determination deadline until April 15, 2010. If ORCR determines that sewage sludge is a solid waste, sewage sludge incineration would also be subject to the Clean Air Act Amendments, Section 129, and the USEPA Office of Air Quality Planning and Standards would have until December 14, 2010, to develop new emission limits for sewage sludge incinerators. If sewage sludge is determined to be a solid waste and new emission limits are developed, it is our understanding that the limits will take into consideration the performance of the existing multi - hearth furnaces. Past practice by the USEPA is to set limits based on the best performance (top 12 percent) in the regulated category. The impact of the new emission limits on the District is unknown at this time. District staff is working with the National Association of Clean Water Agencies to monitor the regulatory process and will provide information and comments at the appropriate time. f) Odor Control Issues September and October are typically the months when weather is hot, air stagnant, and odor becomes more of a challenge. The treatment plant has recently been experiencing higher- than - normal levels of odors. Several employees have recently noticed increased odors, and this week a resident on Blum Road contacted the District about the increased odors. Steps are being taken to reduce odors through increased housekeeping, modified operation strategies, and increased addition of odor control chemicals. Most of the plant's expenditures for odor control chemicals occur during the late summer months. Staff will keep the Board apprised if extraordinary costs are incurred due to more necessary measures. Agenda Item 6.a.4) Board Meeting of October 1, 2009 Additional Written Announcements: Recycled Water Update g) Bill to Authorize New Water Recycling Projects Fails Federal Bill HR 2442 that would have authorized a number of new water recycling projects in the San Francisco Bay Area, failed today on the floor of the U.S. House of Representatives. HR 2442, the Bay Area Regional Water Recycling Program Expansion Act of 2009, would have authorized several new Title XVI projects, including the Central Contra Costa Sanitary District - Concord Recycled Water Project, the Central Dublin Recycled Water Distribution and Retrofit Project, the Petaluma Recycled Water Project (phases 2A, 2B, and 3), the Central Redwood City Recycled Water Project, the Palo Alto Recycled Water Pipeline Project, and the Ironhouse Sanitary District Antioch Recycled Water Project. The act also would have authorized additional funds for the Antioch Recycled Water Project and the South Bay Advanced Recycled Water Treatment Facility. A motion to suspend the rule and pass the bill failed by 34 votes. Congress Member George Miller expects it to be brought up again and considered in the future. Project Update h) CSO Bid Update The CSO Facility project will open bids on Tuesday, October 6, 2009 at 2:00 p.m. A pre -bid meeting was held at CSO, and over 40 general and specialty contractors attended. The project has gained the attention of many perspective bidders and to date, over 230 bid documents have been obtained. Staff anticipates very competitive bids and will promptly evaluate the bids after the opening. As long as there are no irregularities in the bids, staff plans to request the Board award the project at the October 15, 2009 Board meeting; otherwise, the November 5, 2009 Board meeting. General i) State Water Resources Control Board (SWRCB) Hearings on the State -Wide Sanitary Sewer Overflow Waste Discharge Requirement SSODWR Three years ago, the SWRCB adopted the SSO WDR; they have held two workshops to gain input on how the SSO DWR is working, and what, if any changes should be considered. Comments are being received from Baykeeper and similar organizations, from agencies governed by the SSO WDR, and from SWRCB staff. Some of the key points from each group are shown below. Bay Keeper, et. al. Comments -Make the WDR a NPDES permit - Change discharges from "waters of the US" to "waters" - Affirm there is no de minimis spill - Enforce more - Require operator certification Agency Comments -Get everyone enrolled and reporting before taking on changes to the program - Establish a de minimis threshold for spill volume As a general comment, private lateral spills were a big deal for both Bay keeper et. al. and for the SWRCB. They want agencies to report and follow up more on private lateral spills. The SWRCB stated if they decide to revise the SSO WDR, a draft of the new order would be expected to be released in December 2009 for Board consideration in May 2010. Staff will be preparing comments to submit to the SWRCB, and present recommended comments to the Board at the October 15, 2009 Board Meeting. 6.c.1) Central Contra Costa Sanitary District October 1, 2009 TO: HONORABLE MEMBERS OF THE BOARD FROM: ELAINE R. BOEHME, SECRETARY OF THE DISTRICT VIA: JAMES M. KELLY, GENERAL MANAGER SUBJECT: 2010 BOARD CALENDAR Attached is the draft Board Calendar for 2010. Please note the following: An additional Board meeting has been scheduled in April to accommodate the Capital Improvement Budget Workshop, as in prior years. • In August, as in prior years, only one Board meeting has been scheduled. That meeting will be held on August 5, 2010. A second meeting may be scheduled if the Board wishes. • This year it is proposed to combine the November CIB Plan Workshop with the regular Board meeting of November 18. Usually this Workshop is held on the second Thursday of November, but there is a scheduling conflict due to the Veterans Day holiday on that Thursday (November 11) and the Thanksgiving holiday (November 25 and 26) on the other free Thursday. If you prefer to have a separate Board meeting for the workshop, please let me know and I will find a date that works for everyone. Please let me know if you have any comments or suggestions with regard to the proposed calendar. DRAFT BOARD CALENDAR February S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 January January May 7 S M T W T F S 6 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18' 19 20 21 22 23 24 25 26 27 28 29 30 31 7 CCCSD Board Meeting 21 CCCSD Board Meeting November February S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 April S M T W T F S 1 2 3 4 5 6 7 8 9 1C 11 12 13 14 15 16 1 1 18 19 20 21 22 23 2� 25 26 27 28 29 30 January March May 7 S M T W T F S 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 16 CCCSD Board Meeting 29 April S M T W T F S 1 2 3 4 5 6 7 8 9 1C 11 12 13 14 15 16 1 1 18 19 20 21 22 23 2� 25 26 27 28 29 30 2010 January June May 7 S S M T W T F S 6 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 16 CCCSD Board Meeting 29 October 2010 January June New Year's Day 7 S R4 T W T F S Board Workshop - Financial Plan 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 September 2 2010 March 4 CCCSD Board Meeting 8 -10 CASA Legislative Conference Washington, D.C. 18 CCCSD Board Meeting January 1 New Year's Day 7 CCCSD Board Meeting 13 -15 CASA - Desert Springs 18 Martin Luther King, Jr.'s Birthday 21 Board Workshop - Financial Plan 6 February 4 CCCSD Board Meeting 12 Lincoln's Birthday 15 Washington's Birthday 18 CCCSD Board Meeting March 4 CCCSD Board Meeting 8 -10 CASA Legislative Conference Washington, D.C. 18 CCCSD Board Meeting Holiday CASA Conference CCCSD Board Meeting Additional Board Meetings Election Day S 4 11 18 25 April 1 CCCSD Board Meeting 8 Board Workshop - CIB /CIP 15 CCCSD Board Meeting 28 -30 CASA - Newport S Mav 6 CCCSD Board Meeting 20 CCCSD Board Meeting 31 Memorial Day 1 June 3 CCCSD Board Meeting 17 CCCSD Board Meeting 7 JJ1iv 1 CCCSD Board Meeting 5 Independence Day Holiday 15 CCCSD Board Meeting 15 August 5 CCCSD Board Meeting 18.20 CASA - Monterey 21 September 2 CCCSD Board Meeting 6 Labor Day 16 CCCSD Board Meeting 29 October 7 CCCSD Board Meeting 21 CCCSD Board Meeting November 2 Election Day 4 CCCSD Board Meeting 11 Veterans' Day 18 CCCSD Board Meeting/CIB Workshop 25 Thanksgiving Day 26 District Holiday 1 December 2 CCCSD Board Meeting 16 CCCSD Board Meeting 23 Christmas Eve Holiday 24 Christmas Day Holiday 30 New Years Eve Holiday 31 New Year's Day Holiday Holiday CASA Conference CCCSD Board Meeting Additional Board Meetings Election Day S 4 11 18 25 M 5 12 19 26 July T W T 1 6 7 8 13 14 15 20 21 22 27 28 29 F 2 910 16 23 30 S 3 17 24 31 M T August T F S S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 September S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 October S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 rnvvcnruGr S S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 uecemner S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 N" Central Contra Costa Sanitary District Board Meeting October 1, 2009 Board Member McGill Item 6.d.1) FUTURE MEETINGS AND CONFERENCES WITH PAID EXPENSES AND /OR STIPEND Recycled Water Committee Meeting October 6, 2009 (may be rescheduled) Will attend the Mayors' Conference in Oakley, CA, October 1, 2009 MEETINGS AND CONFERENCES THAT EXPENSES AND /OR STIPEND WAS PAID Met with Mayor Michael Harris and City Manager June W. Catalano, City of Pleasant Hill with Jim Kelly and Ann Farrell September 30, 2009 2: Item 6.d.2 Announcements Attended: Contra Costa Council Board Meeting and Planning Session September 18, 2009 Susan Bonilla BBQ September 24, 2009 CoCo Tax Payers breakfast with Mr. John Graham, Director of Health Care studies at the Pacific Research Institute in San Francisco September 25, 2009 Pleasant Hill Community Service Day September 26, 2009 Keller Canyon Landfill, Renewable Energy Project Dedication October 1, 2009 Will attend: Pleasant Hill Art and Wine Fest October 11, 2009 Contra Costa Council. Water Task Force Meeting October 14, 2009 CBIA Fall Meetings October 14 and 15, 2009 Concord Chamber Mixer October 15, 2009 VA Agenda Item 7.a GRAYSON CREEK REW EMERGENCY REPAIR UPDATE 0:"+Wool October 1, 2009 STATUS OF PERMANENT REPAIR • Construction activities /schedule • Board action 1 SCHEDULE AND ACTIVITIES • Temporary REW pipe developed a leak on Friday afternoon (9/25); temporary service was restored within 8 hours • Temporary REW pipe completely failed on Sunday morning resulting in the release of 67,000 gallons of REW • Contractor mobilized Sunday afternoon and permanent REW service was restored by 1:40 PM on Sept. 29 • Clean -up /punch list will be completed before October 15 (Flood Control District's deadline) • Working on recovering costs above $250,000 from our Property Loss Insurance Policy RECOMMENDATION Terminate the emergency declaration for the repairs of the recycled water pipeline at Grayson Creek in Martinez. i. 2 QUESTIONS ?? 3