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HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 01-30-12central Sanitary District REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT BUDGET AND FINANCE COMMITTEE Chair Williams Member Nejedly Monday, January 30, 2012 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California INFORMATION FOR THE PUBLIC ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA BOARD OF DIRECTORS: JAMES A NEJEDLY President DAVID R. WILLIAMS President Pro Tent BARBARA D. HOCKETT MICHAEL R. MCGILL MARIO A/ AIENESINI PHONE: (925) 228 -9500 FAX. (925) 676 -7211 ivmv. cen tralsan. org Anyone wishing to address the Committee on an item listed on the agenda will be heard when the Committee Chair calls for comments from the audience. The Chair may specify the number of minutes each person will be permitted to speak based on the number of persons wishing to speak and the time available. After the public has commented, the item is closed to further public comment and brought to the Committee for discussion. There is no further comment permitted from the audience unless invited by the Committee. ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA In accordance with state law, the Committee is prohibited from discussing items not calendared on the agenda. You may address the Committee on any items not listed on the agenda, and which are within their jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be referred to staff for action or calendared on a future agenda. AGENDA REPORTS Supporting materials on Committee agenda items are available for public review at the Reception Desk, 5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours of the meeting to a majority of the Committee are also available for public inspection at the Reception Desk. During the meeting, information and supporting materials are available in the Conference Room. AMERICANS WITH DISABILITIES ACT In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require special accommodations to participate, please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303. Budget and Finance Committee January 30, 2012 Page 2 1. Call Meeting to Order 2. Public Comments 3. Old Business *a. Review staff's responses to the Committee's requests for the following items: • invoices submitted by Bob Murray • information regarding the California Association of Sanitation Agencies (CASA)'s methodology in developing their membership fee and the value of CASA membership to the District Staff Recommendation: Review the responses and provide direction if needed. 4. Risk Management *a. Review Loss Control Report and discuss outstanding claims Staff Recommendation: Review the report, discuss outstanding claims and provide direction if needed. 5. Review December 2011 Financial Statements and Investment Reports (Item 3.c. in Board Binder) Staff Recommendation: Review and recommend Board approval. *6. CCCSD Total Unfunded Liabilities trend analysis Staff Recommendation: Receive the report. *7. Review Preliminary Fiscal Year 2012 -13 Ten -Year Financial Plan Assumptions and Draft Fiscal Year 2012 -13 Ten -Year Plan Scenario Staff Recommendation: Discuss and provide direction to staff. 8. Expenditures a. Review Expenditures (Item 3.b. in Board Binder) Staff Recommendation: Review and recommend Board approval. Budget and Finance Committee January 30, 2012 Page 3 *b. Review Legal Expenditure Summary Staff Recommendation: Review Legal Expenditure Summary. *C. Review P -Card expenditures Staff Recommendation: Review P -Card expenditures. 9. Reports and Announcements 10. Suggestions for future agenda items 11. Adjournment * Attachment 3.a. Central Contra Costa Sanitary District January 27, 2012 TO: BUDGET AND FINANCE COMMITTEE VIA: JAMES M. KELLY, GENERAL MANAGER fu_'� FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION 9k SUBJECT: JANUARY 23, 2012 FINANCE COMMITTEE MEETING There were two outstanding questions from the last Board Budget and Finance Committee meeting which required additional staff research. 1. A request was made to receive copies of Bob Murray and Associates invoices contract. The response and copies are under separate memo, attached. 2. A question was asked as to the billing methodology used by CASA and the benefit received from belonging to the organization. The response and copies are under separate memo, attached. 3. A request was made to receive copies of claims trending information. Staff was unable to collect the needed material due to the short turn around and work being done for negotiations and the Ten Year Financial Plan. The information will be provided at the next Budget and Finance Committee meeting, February 13, 2012. Central Contra Costa Sanitary District January 27, 2012 TO: BUDGET AND FINANCE COMMITTEE VIA: JAMES M. KELLY, GENERAL MANAGER &k FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION PIA SUBJECT: RESPONSE TO QUESTIONS REGARDING BOB MURRAY & ASSOCIATES RECRUITMENT BILLING Attached are copies of the invoices and contract with from Bob Murray & Associates for the recruitment of the Director of Administration position as requested by Committee Member Nejedly. Also attached is a spreadsheet displaying three invoices paid and one invoice staff has held pending management review. The contract fee, Exhibit B, is based upon the Scope of Work, Exhibit A. The Scope of Work is consistent with the recruitment process. The fee is $17,500 for professional services plus expenses of $6,500, not to exceed $24,000. While Section 4.1.1 of the contract is entitled "Hourly Rate With A Cost Ceiling ", based upon attachment B, it is a fixed fee contract. This practice is common for professional contracts, such as recruiters and financial consultants. One anomaly of the billings is the direct cost for telephone, postage and photocopying. The charges are the same for each of the invoices paid to date. Staff is contacting Mr. Murray for additional information. Most of the professional services cost has been billed and paid, although 4 of the 18 Scope of Work items are not complete. This is in part due to the recruitment was scheduled to be completed by now. cc: Christopher Ko, Human Resources Manager Bob Murray v 0 N N OU')OCflMO It Of`- LO mot.r -0) M 6 00 6 6 64 r Od r- Mr- O c7 LO EAMc - O� T- ~ CO (N r- r- 6111 r.• r tf). 613 6ci- N Ef3 6q O O O N O 0) (3) T- O O d' 'd' v N LO COO O r- tq r C N C d O N O N TU-) N N � r O 6 c6 o6 o6 C6 cli O r CO 61)- lO lV) d O r L6 l6 'O C N O V) LO V- T- In Q i O N N O d N d' r' op 00 N N O 64 O co d IT L E � r CO r- � bg3 I`•- r.. (fi C� i O m O O O O O O L M N O O O O O O Q) r O U') O V) V) V d N O N M COO COO L � Eq r Ef3 64 Efl Efl U C C: C C CL C F L W � V'C� N � 'C > U U > 0 (U 0 RS -p Bob Murray & Associates 1677 Eureka Rd., Suite 202 Roseville, CA 95661 Phone(916)784 -9080 Fax (916) 784 -1985 Bill To Ms. Cathryn Freitas Human Resources Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Terms Due Upon Receipt Description Professional Services Advertising - CWEA Advertising - California Special Districts Association Advertising - California Society of Municipal Finance Officers Advertising - Air and Waste Management Association Advertising - Western Region IPMA -HR Total Reimbursable Expenses Telephone Postage Photocopies CENTRAL CONTRA COSTA SA NIT RY D STRICT ACCOUN'NUMBER AMOUNT col TOTAL S !VOICE ACCURACY, 'D BY ?PRO D BY 'PROV BY n Invoice Date Invoice # 9/16/2011 4393 ED SEP 202011 CCCSD HUMAN RESOURCES Purchase Order # I position Total Dir. of Admin. Amount 5,000.00 275.00 100.00 275.00 450.00 175.00 1,275.00 200.00 75.00 55.00 $6,605.00 Bob Murray & Associates 1677 Eureka Rd., Suite 202 Roseville, CA 95661 Phone(916)784 -9080 Fax(916)784 -1985 Bill To Mr. Christopher Ko Human Resources Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Professional Services Clerical Support FcdEx Advertising - Jobs Available Advertising - Western City Magazine Total Reimbursable Expenses (subtotal) Telephone Postage Photocopies Invoice Date Invoice # 10/17/2011 4420 ®O CEIVED OCT 19, CCCSD HUMAN RESOUFICE8 Terms I Purchase Order # I Position Due Upon Receipt Dir. of Admin. Description I Amount CENTRAL CONTRA COSTA SANITARY DISTRICT ACCOUNT NUMBER AMOUNT TOTAL S INVOICE ACCURACY OK'D BY APPROVED BY DATE APPROVED BY DATE 6,000.00 32.50 11.15 441.00 603.50 1,088.15 200.00 75.00 55.00 Total $7,418.15 Bob Murray & Associates 1677 Eureka Rd., Suite 202 Roseville, CA 95661 Phone(916)784 -9080 Fax (916) 784 -1985 Bill To Mr. Christopher Ko Human Resources Manager Central Contra Costa Sanitary District 5019 lmhoffPlace Martinez, CA 94553 RECEIVED NOV 17 ZU11 CCCSD HUMAN RESOURCES Invoice Date Invoice # 11/16/2011 4449 Bob Murray & Associates 1677 Eureka Rd., Suite 202 Roseville, CA 95661 Phone(916)784 -9080 Fax(916)784 -1985 Bill To Mr. Christopher Ko Human Resources Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 RECEIVED DEC 19 zoil CCCSD HUMAN RESOURCES Invoice Date Invoice # 12/16/2011 4474 Terms Purchase Order # Position Due Upon Receipt Dir. ofAdmin. Description Amount Professional Services 180 miles W— $0.555 /mile 1,500.00 Toll 9990 5.00 w ^rNTRAt~::_ON7ftF, CJ�TP T. iiPTi 1 Total $1,604.90 central Sanitary ,Ditch FAX- (925) 825 -1437 IAA1L•.SU KUL) Cenoal Afanager KENTON L. ALAI Counsel for the Drsrncr (S 10) 808 -1000 F_LAM R ROEHb1E Sect elaty of the District AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES BETWEEN CENTRAL CONTRA COSTA SANITARY DISTRICT AND BOB MURRAY & ASSOCIATES AGREEMENT NO. 038622 THIS AGREEMENT is made this day of_ S4.„f 2011, by and between the CENTRAL CONTRA COSTA SANITARY DISTRICT, 5019 Imhoff Place. Martinez, California, hereinafter called the "DISTRICT," and BOB MURRAY & ASSOCIATES, (Address) 1677 Eureka, Suite 202, Roseville, California, 95661, hereinafter called "CONSULTANT." WITNESSETH: WHEREAS, the DISTRICT desires to contract with CONSULTANT to provide professional consulting services necessary in connection with the Director of Administration recruitment; and WHEREAS, the CONSULTANT is willing, and holds itself capable and qualified to contract with the DISTRICT to provide such professional consulting services; NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements and the faithful performance of the terms and conditions set forth herein, the parties hereto agree as follows: ARTICLE 1 ENGAGEMENT OF CONSULTANT AND AUTHORIZATION TO PROCEED 1.1 The DISTRICT hereby engages CONSULTANT who hereby accepts the engagement to perform certain professional consulting services, namely, Director of Administration recruitment (See Exhibit A.)(Professional consulting services to NAPURCHASING1Contracts and Agreements%Bob Murray and Associates. Dtr of Admtn recruitment, Chris Ko, 038622 docPage 1 of 18 Rew[tao NP-T be performed in connection with said piece of work shall hereinafter be referred to as "Assignment. ") 1.2 The date of entering the Agreement and the engagement of CONSULTANT will be the date set forth on page 1 which is the date the signature of the second party to the Agreement is obtained. The engagement of CONSULTANT shall continue until December. If the engagement of CONSULTANT is not extended by mutual written consent of the DISTRICT and CONSULTANT, then this Agreement shall be terminated on the date set forth above, provided that CONSULTANT shall not be relieved of any of the obligations or covenants contained in this Agreement until the tasks provided for within the scope of work have been completed. 1.3 It is further provided that the obligations or covenants contained in Articles 6.6, 6.9, 6.12, 6.15, and 6.18 shall continue in full force and effect after termination of this Agreement due to completion or pursuant to Article 6.8. 1.4 Authorization for CONSULTANT to proceed will be granted in writing by the DISTRICT as soon as both parties sign the Agreement and applicable insurance documents are received and are accepted by the DISTRICT. Under no circumstances is CONSULTANT authorized to begin work unless and until CONSULTANT has complied with the insurance provisions of Article 6.3. 1.5 It is expressly understood between the parties hereto that no employee /employer or agency relationship is intended, the relationship of CONSULTANT to the DISTRICT being that of an independent contractor. The DISTRICT will not be required to make any payroll deductions or provide Workers' Compensation Insurance coverage or health benefits to CONSULTANT. ARTICLE 2 SERVICES OF CONSULTANT 2.1 The scope of professional services included in this Agreement are described in the Scope(s) of Work, and shall, where not specifically addressed, include all services ordinarily provided by a professional recruitment services under same or similar circumstances. 2.2 CONSULTANT hereby warrants that CONSULTANT and all of said CONSULTANT's employees and subcontractors hold, have obtained, and shall continue to maintain during the course of this Agreement, all professional licenses or other statutorily mandated certifications requisite to the performance of the work set forth in the Scope(s) of Work, as may be required in the State of California, if any. Failure of CONSULTANT, its employees and subcontractors, to obtain and /or maintain in good standing such licenses or certificates shall constitute a breach of this Agreement and shall provide grounds for the immediate termination of this Agreement. NAPURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 2 of 18 ARTICLE 3 RESPONSIBILITIES OF THE DISTRICT AND OF CONSULTANT 3.1 The DISTRICT, without cost to CONSULTANT, will provide all pertinent information reasonably available to it which is necessary for performance by CONSULTANT under this Agreement, including pertinent previous plans, reports and data. The DISTRICT does not guarantee or ensure the accuracy of any reports, information, and /or data so provided. To the extent that any reports, information, and /or other data so provided was supplied to the DISTRICT by person or persons not employees of the DISTRICT, any liability resulting from inaccuracies and /or omissions contained in said reports, information or data shall be limited to liability on behalf of the party who prepared the information for the DISTRICT or otherwise supplied that information, report or data to the DISTRICT. 3.2 The DISTRICT will designate Chris Ko as the person to act as the DISTRICT's representative with respect to the Assignment to be performed under this Agreement. Such person will have complete authority to transmit instructions, receive information, and interpret and define the DISTRICT's policies and decisions pertinent to the work. In the event the DISTRICT wishes to make a change in the DISTRICT's representative, the DISTRICT will notify CONSULTANT of the change in writing. 3.3 CONSULTANT shall perform the Assignment in such a manner as to fully comply with all applicable professional standards of care, including professional quality, technical accuracy, timely completion, and the coordination of all designs, drawings, specifications, surveys, software specific to the Assignment, systems, networks, maps, opinions, recommendations, reports, and other services furnished and /or work undertaken by CONSULTANT pursuant to this Agreement. 3.4 The DISTRICT's review of software, systems, networks, drawings, designs, specifications, reports, opinions, recommendations and incidental consulting work or materials furnished hereunder will not in any way relieve CONSULTANT of responsibility for the professional and /or technical adequacy of its work. Neither the DISTRICT's review, acceptance of, nor payment for, any of the services will be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement. 3.5 During the period of this Agreement, upon request by the DISTRICT, CONSULTANT, shall provide information related to this Assignment that is reasonably necessary to assist the DISTRICT in its coordination of the efforts of others performing services related to this Assignment. ARTICLE 4 COMPENSATION N: \PURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 3 of 18 4.1 The DISTRICT will pay CONSULTANT for work performed under this Agreement, which can be verified by the DISTRICT, on the basis of the following: 4.1.1 HOURLY RATE WITH A COST CEILING Compensation for consulting services performed under this Agreement shall be determined on the basis of CONSULTANT's regular hourly rates per CONSULTANT's Fee Schedule, attached as Exhibit B. The regular hourly rates shall compensate CONSULTANT for the costs of all direct labor, fringe benefits, indirect labor costs, overhead, and CONSULTANT's profit. CONSULTANT's compensation also may include other non -labor direct charges borne by CONSULTANT. Allowable non -labor direct charges shall be billed at cost; however, outside consultant charges and charges for subcontracts may be billed at cost plus a markup for administrative costs if such markup is specifically provided for elsewhere herein. For the purpose of determining payments to CONSULTANT allowable non -labor direct charges shall be defined as follows: (a) Allowable non -labor direct charges which may be billed at cost include such typical expenses as cost of transportation and subsistence, printing and reproduction, computer time and programming costs, identifiable supplies, and charges by reviewing authorities. (b) Other allowable non -labor direct charges may include outside consultant charges and subcontractor's charges which have been authorized by the DISTRICT under ARTICLE 6.2 of this Agreement. Such consultant charges and subcontractor charges may include a zero percent (0 %) markup for administrative costs associated with the engagement of the outside consultant and /or subcontractor. A firm cost ceiling has been established in ARTICLE 4.3 for the work and such ceiling shall constitute the maximum payment for the scope(s) of work and shall not be exceeded without prior written authorization of the DISTRICT. In the event the scope of work is expanded or reduced by the DISTRICT, the cost ceiling shall be subject to renegotiation, upward and downward, to reflect the changes in services and their costs. The adjustment to cost and times shall be done in accordance with the terms of ARTICLE 6.4. In no event shall CONSULTANT be entitled to compensation over and above the original amount where changes in the scope of work or time for performance are necessitated by the negligence of CONSULTANT, or any subcontractor performing under it. N:\PURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 4 of 18 CONSULTANT shall notify the DISTRICT when the costs incurred for the total work approximate seventy -five percent (75 %) of the cost ceiling. With the notification, CONSULTANT shall indicate whether the sum of the current costs incurred plus the estimated total cost to complete the task or tasks set forth in the scope(s) of work will be greater or less than the cost ceiling. Receipt by the DISTRICT of said notification that the cost for completion of all tasks shall exceed the established cost ceiling will not constitute an approval or authorization to increase the established cost ceiling or a waiver of any rights which the DISTRICT may have under this Agreement. 4.2 MONTHLY PAYMENT TO CONSULTANT Payment will be made by the DISTRICT within thirty (30) calendar days after receipt of an invoice setting forth the Agreement Number and the District's Project Manager, from CONSULTANT, provided that all invoices are accompanied by cost documentation determined to be sufficient by the DISTRICT to allow the determination of the reasonableness or accuracy of said invoice. In the event that a payment dispute arises between the parties, CONSULTANT shall provide to the DISTRICT full and complete access to CONSULTANT's labor cost records and other direct cost data, and copies thereof if requested by the DISTRICT. HOURLY RATE WITH A COST CEILING Charges are to be invoiced based on the agreed upon hourly rates invoiced on a monthly basis. Other direct charges as provided for in ARTICLE 4.1.1 shall be invoiced on a monthly basis. 4.3 ESTIMATED CHARGES The total estimated charges for all work under this Agreement is $24,000 and such amount is the cost ceiling as described herein. 4.4 COST OF REWORK CONSULTANT shall, at no cost to the DISTRICT, prepare any necessary rework occasioned by CONSULTANT's failure to provide the services specified in Article 2, Services of Consultant, herein, in a satisfactory manner, due to any act or omission attributable to CONSULTANT, or its agents, including subcontractors. ARTICLE 5 COMPLETION SCHEDULE N:\PURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622 docPage 5 of 18 5.1 The completion schedule for the assignment is as follows, with all times identified from the date that this Agreement was entered into, and all number of days referring to calendar days, unless otherwise noted: All Tasks completed November 30, 2011 5.2 It is expected that CONSULTANTSs work shall begin on or about August 31, 2011, and shall be completed in accordance with the above schedule. Time is of the essence for this Agreement. 5.3 The parties hereto agree to immediately and diligently proceed with their respective duties as set forth herein so that the Assignment will be completed satisfactorily within the shortest reasonable time. ARTICLE 6 GENERAL PROVISIONS 6.1 SCOPE OF AGREEMENT This writing constitutes the entire Agreement between the parties relative to professional consulting services to be provided hereunder and no modification hereof shall be effective unless and until such modification is evidenced by a writing signed by both parties to this Agreement. 6.2 SUBCONSULTANTS AND OUTSIDE CONSULTANTS No subcontract shall be awarded or an outside consultant engaged by CONSULTANT unless prior written approval is obtained from the DISTRICT. No additional approval shall be required for subcontracting with or engagement of any outside consultant set forth in an exhibit to this Agreement (Exhibit A). 6.3 INSURANCE CONSULTANT shall secure and maintain in full force and effect at its own cost and expense until the completion of all services such insurance as shall protect it and the DISTRICT in such a manner and at such amounts as set forth below. The premiums for said insurance coverage shall be paid by CONSULTANT. Said policies of insurance shall stipulate that this insurance shall operate as primary insurance, and that no other insurance effected by the DISTRICT or other named insured will be called on to cover a loss covered thereunder. 6.3.1 The DISTRICT shall be furnished with certificates of insurance and original endorsements affecting coverage, signed by a person authorized by the insurer to bind coverage on its behalf verifying the insurance coverage as required by this Agreement. These WPURCHASiNG \Contracts and Agreements \Bob Murray and Associates, fir of Admin recruitment, Chris Ko. 038622.docPage 6 of 18 certificates of insurance and original endorsements shall be delivered to the DISTRICT within fifteen (15) calendar days of execution of this Agreement. All insurance certificates and original endorsements must be received and approved by the DISTRICT prior to the commencement of any work under this Agreement. The DISTRICT reserves the right to require and have delivered complete and accurate copies of all insurance policies required under this Agreement. 6.3.2 The insurance policies certified for compliance with this Agreement shall include the following provisions or have them incorporated by endorsements: 6.3.2.1 Coverage provided by CONSULTANT's policies shall be primary coverage. 6.3.2.2 The DISTRICT shall receive thirty (30) days prior written notice of a policy cancellation or reduction in coverage. 6.3.3 CONSULTANT shall provide insurance coverage through carriers which have at least an "A" policyholder's rating and a "VII" financial rating in accordance with the current Best's Key Rating Guide. 6.3.4 In the event any change is made in the insurance carrier, policies, or nature of coverage required under this Agreement, CONSULTANT shall be required to notify the DISTRICT prior to making such changes. 6.3.5 The insurance provided under this Agreement shall include policies providing coverage to include each of the requirements set forth below in amounts which meet or exceed the minimums set forth herein: 6.3.5.1 Workers Compensation CONSULTANT shall maintain Workers' Compensation Insurance as required by law in the State of California and Employers' Liability Insurance (including disease coverage) in an amount not less than $1,000,000 per occurrence. This insurance shall also waive all rights of subrogation against the DISTRICT, its employees, representatives, and agents. 6.3.5.2 General Liability N. \PURCHASING \Contracts and Agreements \Bab Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 7 of 18 CONSULTANT shall obtain and keep in full force and effect General Liability Insurance including provisions for contractual liability, personal injury, independent contractors, and broad form property damage coverages. This insurance shall have an endorsement or policy language naming the DISTRICT as an additional insured and with standard cross liability clause and endorsement shall be not less than $1,000,000 per occurrence combined single limit for bodily injury and property damage. 6.3.5.3 Automobile Liability CONSULTANT shall maintain Automobile Liability Insurance with coverage for any vehicle including those owned, leased, rented or borrowed. This insurance shall have an endorsement naming the DISTRICT as an additional insured and with a standard cross liability clause or endorsement. The limit amount for this insurance shall be not less than $1,000,000 per occurrence combined single limit for bodily injury and property damage. 6.4 CHANGES IN SCOPE OR TIME If the DISTRICT requests a change in the scope of work or time of completion by either adding to or deleting from the original scope or time of completion, an equitable adjustment shall be made and this Agreement shall be modified in writing accordingly. CONSULTANT must assert any claim for adjustment under this clause in writing within thirty (30) calendar days from the date of receipt from the DISTRICT of the notification of change unless the DISTRICT grants a further period of time for asserting of claim before the date of final payment under this Agreement. 6.5 NOTICES All notices to either party by the other shall be made in writing and delivered or mailed to such party at their respective addresses as follows, or to other such address as either party may designate, and said notices shall be deemed to have been made when delivered or five (5) days after mailing. To the District: CENTRAL CONTRA COSTA SANITARY DISTRICT N: \PURCHASING\Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 8 of 18 5019 Imhoff Place Martinez, CA 94553 Attention: Agreement No. Telephone Chris Ko 038622 925 -229 -7309 The District's Project Manager for this work is Chris Ko To Consultant: BOB MURRAY & ASSOCIATES 1677 Eureka, Suite 202 Roseville, CA 95661 Attention: Telephone: Bob Murray 916 -784 -9080 6.6 POSSESSION AND OWNERSHIP OF DRAWINGS, SPECIFICATIONS, AND NOTES 6.6.1 All rights, title, royalties, and interest to all work product of CONSULTANT resulting from its performance under this Agreement, including software, systems, networks, drawings and specifications, , data, reports, estimates, opinions, recommendations, summaries, and any other such information and materials as may be accumulated by CONSULTANT in performing work under this Agreement, whether complete or in progress, shall be vested in the DISTRICT, and none shall be revealed, disseminated, or made available by CONSULTANT to others without prior consent of the DISTRICT. If this Agreement is canceled in accordance with Article 6.8 CONSULTANT shall deliver such documents within two weeks of cancellation. 6.6.2 All dealings of the parties under this Agreement shall be confidential and no report, data, information, or communication developed, prepared, or assembled by CONSULTANT under this Agreement shall be revealed, disseminated, or made available by CONSULTANT to any person or organization other than the DISTRICT without the prior written consent of the DISTRICT. 6.6.3 It is understood that CONSULTANT's work product is prepared for the specific assignment at hand, Any reuse of said work products NAPURCHASING\Contracts and Agreements\Bob Murray and Assoclates, Dir of Admin recruitment, Chris Ko, 038622.docPage 9 of 18 by the DISTRICT for an application other than reasonably contemplated by the Assignment will be at the DISTRICT's own risk. Any.use by the DISTRICT of incomplete software, systems, drawings, specifications, or other related materials without the express written authorization of CONSULTANT will also be at the DISTRICT's own risk. 6.7 CONSULTANT'S ASSIGNED PERSONNEL CONSULTANT designates Bob Murray to have immediate responsibility for the performance of the Assignment and for all matters relating to performance under this Agreement. CONSULTANT designates the following persons for the indicated functions: Substitution of any of these assigned personnel shall require the prior written approval of the DISTRICT. If the DISTRICT determines that a proposed substitution is not acceptable, then, at the request of the DISTRICT, CONSULTANT shall substitute with a person acceptable to the DISTRICT. 6.8 TERMINATION 6.8.1 Either party may terminate this Agreement for cause, in whole or in part, if the other party fails to fulfill its obligations under this Agreement through no fault of the terminating party. However, no such termination for cause may be effected unless the other party is given: (1) not less than ten (10) calendar days' written notice (delivered by Certified Mail, return receipt requested) of the intent to terminate, and (2) an opportunity for consultation with the terminating party before termination. 6.8.2 If the DISTRICT terminates this Agreement pursuant to Article 6.8.1 above, nothing set forth in this Article is intended to require the DISTRICT to compensate CONSULTANT for any services which may be claimed to have been provided or be in progress, and the DISTRICT reasonably concludes that further compensation is unwarranted. 6.8.3 The DISTRICT may terminate this Agreement, in whole or in part, whether or not CONSULTANT has failed to fulfill its obligations, if the DISTRICT has a reasonable basis for termination (such as major changes in the assignment requirements, cancellation of the assignment, loss of outside funding, or failure of the Board of N: \PURCHASING \Contracts and Agreements\Bob Murray and Associales, Dir of Admin recruitment, Chris Ko, 038622.docPage 10 of 18 Directors to authorize funding in subsequent fiscal years.) CONSULTANT will be given: (1) not less than ten (10) calendar days' written notice (delivered by Certified Mail, return receipt requested) of intent to terminate, and (2) an opportunity for consultation with the DISTRICT before termination. 6.8.4 Upon receipt of a termination notice, CONSULTANT shall: (1) promptly discontinue all services affected (unless the notice directs otherwise), and (2) deliver within two weeks or otherwise make available to the DISTRICT all software, systems, networks, data, drawings, specifications, reports, estimates, summaries, recommendations, and such other information and materials as CONSULTANT may have accumulated in performing this Agreement, whether completed or in process. 6.8.5 Upon termination under Article 6.8.3, the sole right and remedy of CONSULTANT shall be to receive payment for all amounts due and not previously paid to CONSULTANT for services completed or in progress in accordance with the Agreement prior to such date of termination and for services thereafter completed at the request of the DISTRICT and any other reasonable cost incidental to such termination of services. Such payments available to CONSULTANT under this paragraph shall not include costs related to lost profit associated with the expected completion of the work or other such payments relating to the benefit of the bargain. 6.9 REMEDIES In the event that either the DISTRICT or CONSULTANT brings an action or proceedings for damages for an alleged breach of any provision of this Agreement, the prevailing party will be entitled to recover as part of such action or proceeding, all litigation and collection expenses, including witness fees, court costs, and reasonable attorneys' fees. Arbitration shall be attempted if both parties mutually agree before, during, or after litigation has begun. 6.10 INDEMNITY 6.10.1 CONSULTANT shall indemnify, hold harmless and assume the defense of, in any actions at law or in equity, the DISTRICT, its officers, employees, agents, and elective and appointive boards, from all claims, losses, damage, including property damage, personal injury, including death, and liability of every kind, nature and description, arising out of or in any way connected with the negligent acts, errors or omissions, or the willful misconduct of CONSULTANT or any person directly or indirectly employed by, or acting as agent for, CONSULTANT, directly or indirectly related to NAPURCHASING \Contracts and Agreements \Bob Murray and Associates, Qir of Admin recruitment, Chris Ko, 038622.docPage 11 of 18 the provision of any professional services provided hereunder, but not including the sole or active negligence, or the willful misconduct of the DISTRICT. This indemnification shall extend to claims, losses, damage, injury and liability for injuries occurring after the completion of the aforesaid operations, arising from CONSULTANT's work. Submission of insurance certificates or submission of other proof of compliance with the insurance requirements does not relieve CONSULTANT from liability under this indemnification and hold harmless clause. The obligations of this indemnity article shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 6.10.2 The DISTRICT does not authorize the impermissible use of any patent or the reproduction of any copyrighted material by CONSULTANT which exceeds "fair use" in the performance of this Agreement. CONSULTANT is solely responsible for any such infringement. CONSULTANT shall indemnify the DISTRICT against and save it harmless from any and all losses, damage, costs, expenses, and attorneys' fees suffered or incurred as a result of or in connection with any claims or actions based upon infringement or alleged infringement of any patent, copyright, or trade secret, and arising out of the use of the equipment or materials utilized to perform under this Agreement or specified by or procured by CONSULTANT, or out of the processes or actions employed by, or on behalf of, CONSULTANT in connection with the performance of this Agreement. 6.10.3 CONSULTANT shall also indemnify the DISTRICT against and save it harmless from any and all loss, damage, costs, expenses, and attorneys' fees suffered or incurred on account of any breach by CONSULTANT, or its employees, agents, or subcontractors, of the aforesaid obligations and covenants, and any other provisions or covenant of this Agreement. 6.11 SAFETY CONSULTANT shall perform the work in full compliance with applicable state and federal safety requirements including but not limited to Occupational Safety and Health Administration requirements, and shall assume sole and complete responsibility during the course of completion of the assignment for job site safety of CONSULTANT's employees and subcontractor's employees and their NAPURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038822.docPage 12 of 18 property, applicable at all times, and not limited to normal working hours, Nothing in this Article requires CONSULTANT to be responsible for job site safety of the DISTRICT's property or the DISTRICT's personnel or the property or personnel of any third parties over which CONSULTANT has no authority or control. 6.12 EXAMINATION OF RECORDS CONSULTANT agrees that the DISTRICT will have access to and the right to examine any directly pertinent books, documents, papers, and records of any and all the transactions relating to this Agreement at any time after the inception of this Agreement upon reasonable notice. 6.13 TERMS No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto. No oral understanding or agreement not incorporated herein will be binding on any of the parties hereto. 6.14 ASSIGNMENT CONSULTANT shall not assign any rights or duties or transfer its interest in this Agreement to a third party without prior written consent of the DISTRICT. 6.15 GOVERNING LAW This Agreement shall be governed by the laws of the State of California. 6,16 COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAW CONSULTANT shall at all times observe all applicable provisions of federal, state, and local law and regulations including, but not limited to, those related to equal opportunity employment. 6.17 HEADINGS Article headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants, and conditions of this Agreement. 6.18 PARTIAL INVALIDITY If any term, covenant, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated thereby. N: \PURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 13 of 18 6.19 AUTHORIZATION Both the DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute contracts for that party. 6.20 REPORTING REQUIREMENTS If CONSULTANT is an individual or sole proprietor, CONSULTANT must furnish its Social Security Number (SSN). If CONSULTANT is a corporation or partnership, CONSULTANT must furnish its Federal. Employer Identification Number (FEIN). CONSULTANT shall complete the Taxpayer I.D. Number section below. N: \PURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 14 of 18 IN WITNESS WHEREOF, the parties hereto have executed the Agreement in the day and year first above written. BOB MURRAY ASSOCIATES By: Name Printed: Title: Date: By: 5" *4a Name Printed: CWM-00 N. AivrlAqy' Title:L'L Date: Taxpaver I.D: SSN - - FEIN CENTRAL CONTRA COSTA SANITARY DISTRICT By: Anthony Holt Senior Buyer D� Date: ! NAPURCHASINGtContracts and Agreementsl13ob Mui ray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 15 of 18 EXHIBIT A BOB MURRAY AND ASSOCIATES SCOPE OF WORK AND FEE SCHEDULE CONSULTANT shall perform the following tasks: 1. Meet with District management to develop ideal candidate profile. 2. Develop and implement recruitment and advertisement strategy. 3. Develop and print a professionally produced recruitment brochure. The brochure will highlight the strengths of the District, its government structure and services, its mission and goals, pertinent facts regarding the position, and necessary and desirable candidate qualifications. 4. Mail recruitment brochure to target audience, including the Consultant's network and contacts, other public agencies, special districts, cities, counties, and other public agencies, both locally and statewide. 5. Write and place recruitment advertisements in the Contra Costa Times and appropriate newsletters, job bulletins, Internet websites, professional magazines, industry trade journals, professional organizations, public sector newsletters, etc. within one week of the opening of the recruitment. 6. Identify candidates from diverse backgrounds. Make direct telephone contact with the Consultant's network and contacts. Provide each potential candidate with a copy of the recruitment brochure via personal letter and /or email, and encourage them to apply for the position. Provide the District with a list of targeted candidates that have provided a positive response. 7. Follow up with target audience as identified in #6 above. 8. Receive resumes and screen resumes based on the merits of each candidate and their appropriateness for hire, including their professional and education credentials. 9. Conduct preliminary personal interviews with ten (10) to twelve (12) top candidates. Assess their reasons for interest in the position, level of commitment, personal and professional attributes based on the District's requirements, and clarify any issues raised by the submitted documents. 10. Conduct public records search, Internet, media and newspaper searches on the top candidates. NAPURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 16 of 18 11. Meet with District management to discuss recommended finalists. Provide a written recommendation and analysis of the finalists. 12.Assist the District in arranging an oral board panel consisting of the number of raters identified by District management, develop a set of key questions, and complete all necessary communications with the oral board members and candidates. 13. Provide oversight during the final interview process and facilitate the panel's discussion with the final candidates. 14. Maintain all required legal documentation developed and /or gathered throughout the recruitment process. 15. Provide ongoing communications to all candidates informing them of the process and their disposition. 16. Conduct final reference and background checks on the selected candidate. This review should include, at minimum, employment and professional references, confirmation of educational degrees, driving record check, criminal record search and a financial history check. If a background contract firm is used, it must meet all federal and state reporting requirements. 17. Negotiate terms and conditions of employment, such as salary, benefits, and other prerequisites, if requested by the District. 18. Maintain regular and ongoing communications with District management and the Human Resources Manager throughout the recruitment process. Fees Schedule: $17,500 in professional services plus expenses not to exceed $6,500, with a maximum allowable fee of $24,000. CONSULTANT shall provide supporting documentation for all expenses. The District will also reimburse CONSULTANT for any travel costs incurred for meetings and /or interviews. The maximum expenses allowed are stated as follows: Item Maximum Mileage The maximum mileage reimbursement will be subject to the IRS limit, which is currently $0.555 per mile. Car rental is not authorized unless otherwise specifically approved by the District. Meals $65 per day Hotel $150 per day Daily Maximum (excluding mileage) $215 per day NAPURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 17 of 18 EXHIBIT B FEE SCHEDULE The total estimated charges for all work under this Agreement is $24,000 and such amount is the cost ceiling as described herein. N: \PURCHASING \Contracts and Agreements \Bob Murray and Associates, Dir of Admin recruitment, Chris Ko, 038622.docPage 18 of 18 Central Contra Costa Sanitary District January 27, 2012 TO: BUDGET AND FINANCE COMMITTEE VIA: JAMES M. KELLY, GENERAL MANAGER ,Q FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION r SUBJECT: CALIFORNIA ASSOCIATION OF SANITATION AGENCIES MEMBER BENEFIT AND DUES INFORMATION A request was made by Board Committee Member Nejedly regarding the method of billing by CASA and the benefit to belong to the organization. These questions were asked at the February 14, 2007 and the February 1, 2010 Budget and Finance Committee meetings. Staff has attached copies of the pertinent material from those responses. The CASA fee is based upon the agency's Operations and Maintenance (O &M) budget. The first attachment is General Manager's, Jim Kelly, memo to the Committee discussing the benefits of belonging to CASA. The second attachment is a copy of the $18,000 invoice and check for payment. The third copy is the material sent to the Committee responding to the questions at the February 14, 2007 Committee meeting. The last attachment, attachment 4, is a spreadsheet displaying all member fees. cc: Elaine Boehme, Secretary of the District 57,46 Central Contra Costa Sanitary District January 28, 2010 TO: BUDGET AND FINANCE COMMITTEE FROM: JAMES M. KELLY, GENERAL MANAGER SUBJECT: CALIFORNIA ASSOCIATION OF SANITATION AGENCIES MEMBER BENEFIT AND DUES INFORMATION For over 50 years, the California Association of Sanitation Agencies (CASA) has been ensuring clean water for Californians. In the mid- 1950s, former State Senator John Nejedly who was Counsel for the Central Contra Costa Sanitary District (CCCSD), conceptualized the need for a professional organization to represent all of the state's sanitary districts. As a result of Mr. Nejedly's efforts, the "California Sanitary District Association" was formed in 1956 and later became CASA. While the issues have changed since the formation of CASA, the need for representation of the state's wastewater collection and treatment agencies remain. CASA, through its staff and member volunteers, provides its members with the following: 1. Representation before the State Water Resources Control Board ( SWRCB), regional boards, and other state agencies on decisions and policies including both submittal of comments and testifying. The upcoming SWRCB reconsideration of the Waste Discharge Requirement for Sanitary Sewer Overflows is a current example of where member agencies' interests are represented. 2. Direct and grassroots advocacy on the federal, state, and local levels on legislation and regulations affecting public wastewater agencies. CASA represented our interest in limiting the amount of property tax that was borrowed from us last year. 3. Tracking and commenting on emerging and pending regulations. 4. CASA holds three conferences a year to keep members up -to -date on important technical, regulatory, and legislative matters, and on emerging trends. 5. The Washington D.C. Annual CASA Conference provides up -to -date national regulatory and legislative information, and an opportunity to meet directly with our elected officials and the federal regulatory officials. 6. CASA Attorney Members provide up -to -date legal information and litigation support to the membership. 7. CASA Associate Members offer current technical information and expertise through networking at the conferences and identifying key topics for presentations. 8. CASA Sponsors Tri -TAC — A technical advisory committee representing CASA, League of California Cities, and the California Water Environment Association. Tri- TAC meets monthly to improve environmental programs by working with state and federal regulatory agencies as well as interest groups on matters related to Publicly Owned Treatment Works. As a result of these efforts, CASA is viewed and accepted as a trustworthy and influential source of information at the federal level by the Environmental Protection Agency, the state level by the SWRCB, and at the local level by the regional boards. CASA has been able to attract outstanding persons in the field of water quality to share their expertise, knowledge, and insight with the organization at its conferences for the benefit of its members. Attached is a list of 2009 CASA members and their membership dues. Also attached is the 2009 CASA Annual Report, and an Annual Dues Calculation Statement. 'ALIFORNIA ASSOCIATION of SANITATION AGENCIES 1215 K Street, Suite 2290 • Saernmento, CA 95814 • TEL: (916),146-0388 — FAX (916) 231 -2141 • www.casaweb.org December 3, 2009 James M. Kelly, GM Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 RE: 2010 CASA Membership Dues Renewal Dear Jim: On behalf of the California Association of Sanitation Agencies (CASA), I want to personally thank you for your ongoing commitment'to. CASA., For over 50 years, CASA has been recognized as the leading voice on water quality and related environmental wastewater policy issues throughout California and Washington, DC. Today, as we look to the future and collectively face significant challenges resulting from the current economic environment; CASA remains committed to protecting local revenues essential to so many as well as,working to advocate for additional funding mechanisms allowing our agencies to'respond to their constituents which they are dedicated to serve. With your support, CASA can continue to serve California by providing leadership, advocacy and up -to -date information to promote, clean water that protects both public health and the environment:. Enclosed you will find your 2010 CASA membership renewal statement based on a calendar year. The CASA Council approved the rates that have no increase in dues at the annual conference in August.- If you have any questions or;rieed- assistance with the . renewal process, please contact Debbie. Welch at dwelch 'casaweb.org or, call the office (916) 446 -0388. Your membership is vital to CASA's ability to be successful on our issues and serve our members. We rely on our members continued involvement as we embark on new challenges in the years ahead. On behalf of the CASA Executive Board and staff, I thank you for your support of CASA and wish you a happy holiday season. Sincerely, Ronald E. Young, P.E., D.E.I. President California Association of Sanitation Agencies 2010 Agency Membership Dues Statement TAX I.D. 68.- 0018896 Remit to: 1215 K Street Suite 2290, Sacramento, CA 95814 PH: (916) 446 -0388 — FX: (916)231 -2141 — Website: casaweb.org 'Please return a copy of the Dues Statement with your check December 3, 2009 Central Contra Costa Sanitary District CAMPV James M. Kelly, GM Email: Skelly @centraisan.org 5019 Imhoff Place Martinez, CA 94553 �kLEA-S—E —DETERMINE YOUR AGENCY'S ANNUAL DUES AS FOLLOWS: 1. Agency 2009/2010 Operations and Maintenance Budget for sewerage collection, $ (1) treatment, disposal and reclamation (including administrative costs,,unless your agency is multi - purpose ): %5' 3. Budget between $1,000,000 up to $2,500,000• -. $ 4,000 2. For multi - purpose agencies, allocate proportional share. of administrative budget for $ (2) sewage services. ``- 3. Subtract budgeted revenues to be received from other agencies that are members of $ ---, (3) CASA, if any. $ 18,000 4. Total for membership dues determination (1 +2 -3). $ S� q/J e- 1 (4) 5. 2010 Dues Payment insert-from chart below the'appropriate fee for membership', $ A /\ (5) � J `Please return a copy of the dues statement with your check. Thank You "Ensuring Clean Water for California" k)��CAK 1,60,j 1. Minimum rate maximum budget up to $500,000 _ $ 800 2. Budget between $500,000 up to $1,000,000• $ 1,500 3. Budget between $1,000,000 up to $2,500,000• -. $ 4,000 4. Budget between $2,500,000 up to $5,000,000.,'' $ 8,000 5. Budget between $5,000,000 up to $10,000,000 $ 12,000 6. Budget between $10,000,000 up to $20,000,000 $ 15,000 7. Budget between $20,000,000 up to $100,000,000 $ 18,000 8. Budget over $100,000,000 $ 25,000 `Please return a copy of the dues statement with your check. 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N N r r r N N N N r r N r' N N N r r N r N N O F (n t� 69 69 69 69 69 E+9 69 69 6A (fl 69 69>166.10Y 6)1 6H 69 Ef3 69 -), 69 69 69 69 69 69 69 69 69 69 in 69 69 69 69 69 69 69 69 69 ul) Ul 20mm 0 0 0 00 00000 mMmtTMOO 0 a0 0 0 tT tT 00 0 0 o otT 0 Cl tTotb 0 0 0 Q)tTo 0 0 tToO00000MothoaoOOotT 0 0 0 0 0 0 O O O O o O O O O O to O a0 O a000 O O to O fA Cl tT O tT O p 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tn N N N N N N N N N N N 0 N N N N N N N N N N N N m \ r(DMONatoO N \ N N N \ N N N N \ \ V N (DraeCN(`ad N N N \ N N \ \ N N N \ N \ N CM N \ N N Co 4 I�(DM tT N mot` NOratnto N N aaQtia�Qt M M N N N V- r N N as - a` - ---- r` N -- N c. r(D ar rN r ra �= rMaaC) r v a) an m a 0 0 N 00 N r•1 L u v OJ .1] N .n v N D. 0 0 N N rl C O-� N N a � w W a D cl O O O V IL _ _ N G 'S V N d U W a m ~ m 0 W ' M Q N .•ice M Y r r d "= Ud EA O N O � 3 O LL N N Ny Q N QQ Q tll m O Q C C 7 LL U � m N g m 8888 0 °n Et N o to _o cV N N r 69 + M M IA M O O d 0 a O O O O Cb O O O O r O :3 NcOd N M O Q] MU)r0 O r O cD p r r M O LlJ r r } d9 IA LL W fA M M O O O O V _ d N O c` - U McUN 0 M Q N M r r r to to to EA � m N m m :0 0 �.. 0 Q Q C Q Q N o O ., '✓ W Executive Board UFORNIA ASSOCIATION of SANITATION AGENCIES 215 K Street, Suite 2290 • Sacramento, CA 95814 • TEL: (916) 446 -0388 — FAX: (916) 231 -2141 • vmm casaweb orq President GARY W. DARLING Delta Diablo Sanitation District t st Vice President JOHN E. HOAGLAND Rancho California Water District 2nd Vice President STEPHEN A. HOGG City of Fresno Secretary- Treasurer TOM SELFRIDGE Truckee Sanitary District TIMOTHY P. BECKER Oro Loma Sanitary District PAUL BUSHEE Leucadia Wastewater District JOSEPH A. LAURIA ARCADIS /Pirnie KEVIN M. HARDY Encina Wastewater Authority BARBARA D. HOCKETT Central Contra Costa Sanitary District JEFF M. MOORHOUSE Carpinteria Sanitary District MARGIE L. RICE Midway City Sanitary District November 22, 2011 James M. Kelly, GM Central Contra Costa Sanitary District 5019 Imhoff Place Martinez CA 94553 Subject: 2012 CASA Membership Dues Renewal RF- CENV_ED . NOV 282011 BY: On behalf of the California Association of Sanitation Agencies (CASA), I want to personally thank you for your ongoing commitment to our Association. For more than 50 years, CASA has been recognized as the leading voice on water quality and related environmental wastewater policy issues throughout California and Washington, D.C. With your support, CASA can continue to serve California by providing leadership, advocacy, and up -to -date information to promote clean water that protects both public health and the environment. Enclosed you will find your 2012 CASA membership renewal statement based on the calendar year. In August, the Council adopted the rates with no increase in dues for a third year. If you have any questions or need assistance with the renewal process, please contact Debbie Welch at dwelch @casaweb.org or call the office 916 - 446 -0388. DAVID R. WILLIAMS Your membership is vital to CASA's ability to successfully fulfill our mission and East Bay Municipal Utility District serve our members. We rely on our members continued involvement as we RONALD E. YOUNG, P.E., Elsinore Valley Municipal Water ter District embark on new challenges in the ears ahead. g Y On behalf of our Executive Board, Committees' and staff, thank you for your CATHERINE A. SMITH Executive Director support and I wish you a Happy Holiday Season and a New Year filled with health MICHAEL F. DILLON and prosperity. State Lobbyist GREG KESTER Sincerely, Biosolids Program Manager ROBERTA L. LARSON Director of Legal &Regulatory Affairs ERIC SAPIRSTEIN V` Federal Legislative Advocate Gary W. Darling President Ensuring Clean Water for California California Association of Sanitation Agencies CASA D -'� 2012 Agency Membership Dues Statement TAX I.D. 68 - 0018896 Remit to: 1215 K Street Suite 2290, Sacramento, CA 95814 PH: (916)446 -0388 — FX: (916)231 -2141 — Web site: casaweb.org ` Please return a copy of the Dues Statement with your check CONTACT •R • • Name: Central Contra Costa Sanitary District Manager: James M. Kelly, GM Address: 5019 Imhoff Place Cit : Martinez State: CA Zip: 94553 Phone: 925 228 -9500 $ 8,000 E -mail: jkelly@centralsan.org Website: www.centralsan.or ' • • STY 2. Budget between $500,000 up to $1,000,000 1. Agency 2011/2012 Operations and Maintenance Budget for sewerage collection, $ (1) treatment, disposal and reclamation (including administrative costs, unless your agency is multi - purpose). $ 8,000 r $ 12,000 6. Budget between $10,000,000 up to $20,000,000 $ 15,000 2. For multi - purpose agencies, allocate proportional share of administrative budget for $ (2) sewage services. 3. Subtract budgeted revenues to be received from other agencies that are members of $ (3) CASA, if any. 4. Total for membership dues determination (1 +2 -3). $ / / J f``)k� (4) 5. 2012 Dues Payment insert from chart below the appropriate fee for membership $ / ax) (5) CHART 1. Minimum rate maximum budget up to $500,000 $ 800 2. Budget between $500,000 up to $1,000,000 $ 1,500 3. Budget between $1,000,000 up to $2,500,000 $ 4,000 4. Budget between $2,500,000 up to $5,000,000 $ 8,000 5. Budget between $5,000,000 up to $10,000,000 $ 12,000 6. Budget between $10,000,000 up to $20,000,000 $ 15,000 7. Budget between $20,000,000 up to $100,000,000 $ 18,000 8. Budget over $100,000,000 $ 25,000 'Please return a copy of the dues statement with your check. Thank You "Ensuring Clean Water for California" 1 12 Mai 0 0 W Q Check No. 188392 Date invoice Number Description Amount 11/22/11 2012 DUES CCCSD MEMBERSHIP DUES 2012 18,000.00 CASA 1443 18, 000.00 RED S BLUE BORDER AND BACKGROUND PLUS A KNK9HT S FINGERPRINT WATERMARK ON THU BACK. HOLD AT ANGLE To VIEW iCentral Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 945534392 Date I Fund I Check Ro. Amount 01/0512012 3408 1 188392 $"'18,000.00 WELLS FARGO BANK, MARTINEZ, CA 11.241225 1210(8) PAY EIGHTEEN THOUSAND AND 00/100 DOLLARS "" """""" ""** "*"" "• "•'"'••'"""*" CASA To 1215 K STREET SUITE 2290 The SACRAMENTO CA 95814 Order Of 111 3406 L88 3 9 2116 1: 12 L000 2481:4 2 25 0 2 76 140 �..r.. G y1�. //__ 7'� 7 PRESIDENT SeER€iXkv CHECK VOID 9 MONTHS AFTER DATE OF ISSUE State Legislative Advocacy CASA is the voice of the public wastewater agencies at the State Capitol in Sacramento. The Executive Director and staff monitor hundreds of bills each year, dealing with water quality, environmental regulation, special district issues, local finance and property taxes, public contracting, and liability. A State Legislative Committee comprised of member agency representatives provides policy guidelines and establishes CASA's positions on specific legislative proposals. The Association has an excellent record of success with its legislative agenda and representing water quality issues. Federal Legislative Advocacy CASA's Washington, D,C. office provides liaison with Califomia's Congressional delegation. CASA advocates positions before Congress on a broad range of environmental, public health and natural resource policies. CASA has a Federal Legislative Advocate headquartered in Washington, D.C. and hosts an annual Washington, D.C. conference for member agencies to meet directly with their federal representatives. Important federal issues in which CASA has played a pivotal role include: - Total Maximum Daily Loads - State Revolving Fund Appropriations - Resource Conservation and Recovery Act - Clean Water Act - Clean Air Act - Biosolids - Climate Change - Safe Disposal of Pharmaceuticals - Chemical Security Legislation - Renewable Resources CASA's Federal Legislative and Liaison Committee oversees its federal advocacy program. Regulatory Analysis and Advocacy CASA assists its member agencies in understanding and complying with the ever - increasing array of federal and state environmental regulations. The Association represents member interests in the development of new and revised regulations through written comments, testimony before regulatory agency boards, and participation on advisory committees and work groups. CASA keeps members informed on important regulatory developments through the Association's Air, Land and Water Forums and other publications of interest. Legal Services CASA's Attorney Committee consists of the general counsels of each of the CASA member agencies. The Committee provides information to the membership regarding newly enacted laws, recent court decisions and emerging legal issues. The Committee also represents CASA in preparation of amicus briefs in important cases. CASA also represents the interests of its members in state and federal litigation on key issues. Conferences CASA meets three times each year at various locations throughout California (January, May and August). Conferences provide the opportunity for the exchange of information and feature presentations by distinguished speakers on topics of current interest. Sessions are targeted to governing officials, management and technical staff members, and attorneys. Conferences are open only to CASA members. CASA also sponsors one -day seminars on emerging issues on an as- needed basis. Website /E- alerts CASA keeps members informed on key issues with E- alerts, newsletters and other publications. The latest information regarding emerging issues, membership, conferences, committees and other CASA programs is ava :fable on the CASA website at www.casaweb.org. Awards Each year, the CASA Executive Board recognizes the achievements of its members. Awards are presented in four categories: Technical Achievement - Public Outreach/Education - Organizational Innovation - Outstanding Capital, Projects Winners are invited to make a presentat'on regarding their award- winning program at the Mid -Year Conference to share their insight and success with other attendees. 2012 CASA 2012 COMMITTEE EXECUTIVE BOARD CHAIRPERSONS Gary W. Darling - President Vivian Housen, Associates Chair Delta Diablo Sanitation District Carl P.A. Nelson, Attorneys Chair John E. Hoagland - 1 st Vice President E.J. Shalaby Awards Chair Rancho California Water District Tom Selfridge, Budget & Audit Chair Stephen A. Hogg - 2nd Vice President City of Fresno, Department of Public Utilities Tom Selfridge - Secretary- Treasurer Truckee Sanitary District Timothy P Becker - Director -at -Large Oro Loma Sanitary District (Director) Paul Bushee - Director -at -Large Leucadia Wastewater District Kevin M. Hardy - Director -at -Large Encina Wastewater Authority Joseph A. Laurira, PE. - Director -at -Large Malcolm Pirnie Jeff Moorhouse - Director -at -Large Carpinteria Sanitary District (Director) Ronald E. Young P.E., DEE, Bylaws Chair Michele McKinney Underwood, Communications Chair Jean Mariani, Directors Chair Gary W. Darling, Evaluation Chair Ann Farrell, Federal Liaison & Legislative Chair Ed McCormick, Managers Chair Barbara D. Hockett, Nominations Chair Grace Chan, Program Planning Chair Jeff Moorhouse, State Legislative Chair Joyce Gwidt, Conference Arrangements Chair Lisa Rothbart, Air Issues Forum Chair Mike Sullivan, Land Issues Forum Chair Margie L. Rice - Director -at -Large Laura Pagano, Water Issues Forum Chair Midway City Sanitary District (Director) Richard Althouse, SWRCB - WW Treatment Plant David R. Williams - Director -at -Large Operator Certification Advisory Committee East Bay Municipal Utility District Representative Barbara D. Hockett, RN, M.S. Ed - Past Wyatt Troxel, SWRCB - WW Treatment Plant President Operator Certification Advisory Committee Central Contra Costa Sanitary District (Director) Representative Ronald E. Young P.E., DEE - Past President Terrie Mitchell, Tri -TAC Chair Elsinore Valley Municipal Water District California Association of Sanitation Agencies CASH 1215 K Street, Suite 2290 Sacramento, CA 95814 916.446.0388 phone 916.231.2141 fax www.casaweb.org CASA STAFF MEMBERS Catherine Smith, Executive Director Ashley Bradley, Communications Manager Mike Dillon, State Legislative Lobbyist Zeynep Erdal, Climate Change Program Coordinator Greg Kester, Biosolids Program Manager Roberta L. Larson, Director of Legal & Regulatory Affairs Justin Lewis, IT Manager Eric Sapirstein, Federal Legislative Advocate Simone Parker, Conference Staff Debbie Welch, Conference Coordinator /Executive Assistant Fiona Young, D.C. Conference/ Admin. Assistant Mission Statement The mission of the California Association of Sanitation Agencies is to provide leadership, advocacy and information to our members, legislators and the public, and to promote partnerships on clean water and beneficial reuse issues that protect public health and the environment. CASA Member Benefits I California Association of Sanitation Agencies California Association of Sanitation Agencies Environment Page 1 of 2 Ensuring Clean Water for California Topics about us member benefits Members Education CASA provides resources for educators and wastewater professionals — current and new[ Explore Education http: / /casaweb.org /member- benefits 1/24/2012 Events Resources Advocacy The California Newsroom Home About Us Association of Alerts CASA Member Benefits Sanitation Agencies Current News provides leadership, CASA is the leading voice for public wastewater agencies at the local, state and federal levels regarding regulatory, legislative and legal issues. Membership in advocacy and CASA provides: information to our About Us • Dedicated professionals in the areas of legislative advocacy. regulatory and legal affairs, biosolids, and climate change, members, legislators Histo ry • Access to CASA's business meetings and conferences held three times a and the public, and year in California and annually in Washington, D.0 These meetings provide Awards Program comprehensive educational programs specifically tailored to governing promotes partnerships Board Profiles officials and water quality professionals to gain first -hand knowledge about on clean water and National, State and clean water issues and beneficial reuse resources on technical, regulatory and legislative matters They also offer members an opportunity to network beneficial reuse issues Regional Affiliates with colleagues and share information; More • Opportunities to attend special educational seminars on important technical that protect public and regulatory issues; health and the • Biosolids sustainable management policies, practices and scientific studies that advocate the beneficial use of this resource in California; environment • In -house legal defense fund and active attorneys' committee brief members regarding key legal developments and litigation matters related to California's public water quality community. CASA is a Slate Bar of California MCLE 1215 K St Ste 2290 approved provider, • Direct and grassroots advocacy at the federal, state and local levels Sacramento, CA 95814 regarding legislation and regulations affecting public wastewater agencies; p 916 446 0388 • Representation before the Federal and State Legislature, Water Board, CalRecycle, regional boards, and other California localities on decisions and f 916 231 2141 policies including but not limited to both submittal of comments and testimony, • Access to studies focused on sound science research, which enables CASA to represent members in front of decision- making bodies: and • Members only access to the CASA website, which provides a plethora of water quality information and timely updates. Topics about us member benefits Members Education CASA provides resources for educators and wastewater professionals — current and new[ Explore Education http: / /casaweb.org /member- benefits 1/24/2012 Central Contra Costa Sanitary District February 23, 2007 TO: BOARD BUDGET AND FINANCE COMMITTEE FROM: RANDALL MUSGRAVES DEBBIE RATCLIFF SUBJECT: February 14, 2007 Finance Committee Meeting There was one outstanding question from the last Board Budget and Finance Committee meeting which required additional staff research. The question and answer is provided below: 1. A question was asked regarding how membership fees are determined for the various associations to which the District belongs. Three of the largest membership fees for the District are paid to California Association of Sanitation Agencies (CASA), California Special Districts Association (CSDA) and Bay Area Clean Water Agency ( BACWA). CASA and CSDA applications are attached which show the calculation for agencies depending on the size of their budget. BACWA has a different basis for determining the membership fee. There are five principal agencies (of which the District is one) that pay $90,000 each and this is based on BACWA's annual budget. Also, there are thirty associate agencies that pay a lesser membership fee. We also pay an additional $90,000 to support the Clean Estuary Project that develops TMDLs which is a requirement of the District's NODES permit. December 7, 2006 Agency Name County Address City Telephone website General Manager E -mail CALIFORNIA ASSOCIATION OF SANITATION AGENCIES 2007 Membership Dues Statement TAX I.D. 68.- 0018896 Remit to: 1215 K Street Suite 2290, Sacramento, CA 95814 PH: (916) 446 -0388 FX: (916) 231 -2141 Website: casaweb.org 'Please return a copy of the hues Statement with your check CA Zip Fax PLEASE DETERMINE YOUR AGENCY'S ANNUAL DUES AS FOLLOWS: 1. Agency 2006/2007 Operations and Maintenance Budget for sewerage collection, treatment and disposal (including administrative costs unless your agency is multi - purpose). $ (1) 2. For multi - purpose agencies, allocate proportional share of administrative budget for sewage services. $ (2) 3. Subtract budgeted revenues to be received from other agencies that are members of CASA, if any $ (3) 4. Total for membership dues determination (1 +2 -3) $ (4) 5.2007 Dues Formula =Total line 4 x 52.21 $ (5) 1000 6.2007 Dues Payment $ (6) If formula calculation is less than minimum chart, enter minimum dues on line 6• If formula calculation is less than chart level No. 2., enter formula $ on line 6. If formula calculation is greater than chart amount, enter chart level $ in line 6. Chart 'Please return a copy of the dues statement with your check. Thank You "Ensuring Clean Water for California" $ 741 2. Maximum dues for budget under $10 million $11,823 4. Maximum dues for budget more than $20 million $14,727 'Please return a copy of the dues statement with your check. 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N c (D N co Ynl cO c rn m Y a�N) J _ C) o C � T a�°Cl) L° L h i N = CD N � ,r o t O � o cu x Occmi r � o Jlo o N N r Q cD C\j C7 N � O ti r r J J J J 0 0 0 0 CO) N st h h Olc°o�ggo N N N N Xk1 — N •m LL 1 rn N y N 'D O O CL Ul0 UIO N o cts Q Ga O 'Lo C. y o C! U N a 'L N CL U d z w 0 U U ~°. z_ LL! a O cc M ftI NI_ o ° ma 0 � cNA � N cr: ¢ Lfl U O CA CA CD O N m QD O r CO N M CO t "CO) N LC) � tp li) N 1-t 00 69 I69ea6s 6I I 3 0 cn *ft w> C\I CM Q 1 z O F- 01• c c C r L E e� CC c c 4109. 6 S YC F �cts c cc cc c cn C1 J $ cv T N g _ CO N Cts ID O N G CL t H - IN z N y� 01 N in c O O OI'2 Qlp J Q J N N N cC�lj O N r r r ja <aQ aaa O co i40 r N N N R N N ft I V W I� N M V C C C N co O O in'OV U U0O i (40. Central Contra Costa Sanitary District JANUARY 27, 2012 TO: BUDGET AND FINANCE COMMITTEE FROM: JIM KELLY, GENERAL MANAGER SUBJECT: DISTRICT TOTAL UNFUNDED LIABILITIES REND The attached chart presents the District's unfunded liabilities from 2005 projected through 2014. The unfunded liabilities include CCCERA, UAAL, GASB 45, Outstanding Debt, and Accrued Compensation Absences. GASB 45 was not officially counted as a liability until FY 2006 — 07. The greatest increase has been in CCCERA UAAL and GASB 45. The UAAL has increased due to the 2008 market losses, depooling, and changed demographic assumptions. GASB 45 liability has continued to rise due to higher than projected increases in health care premiums and change demographic assumptions. cc: Board of Directors Colette Curtis - Brown, Finance Manager R G C Q C 4 a Q V N Cl) J c N /O V 0 C C _ U cra L A� W +1 L t{ O g O g O g (1 1 � �8 O 1n N C ti N d a O O O O C O M N T O N O O O O O O n M it OO rn ONO (O tW tt (V pM try M o r N IT N O N O O N N Q O w G N N to n o N M O�pj n O t°ii N h O O M O N O O M O m C 0 LQ .Od. 1110 CNt eM� ('� N 0 O 0m n m m r> co 0 w T c00 M 0 co 001' rte-' N O N h Ot n M c} O rt ��tiry t'f O CO N � t00 M u11''1 t0 CO G CO a N O N r t0 M t00 h c00 O N 0 V' d- N n N eT deCppt C'9 0 tl' O� ti 0 to CV T O O 0 CO 0 13 V O O rF In N w O T In r N to O N t0 C d N OV T 9 W Qu � N co Cl 'n7 v o M Cl N I p <0 r- C LO N «7 to C0 M N T CO O 0 M O N 0 O c (q n T °i Z co n c N 0 N M w C�p <O ff3 U) Cfl d) (A d w J uJ A v V A v A v A y C Q) E y d V 7 C N ca U) N y = to a CL E O U aJ J m d 0 to v U) CD c n d U � 0 v J C = m E y— > C t O y w J O C E 0 cb 0 N a) c O E ut N N Ef3 a) L H of N 0 _: N C 0 E a) m i0 N .c m� N E ca C C CD U N 0, J C rn al O O 3 0 E N N m o `ca �i ` j C7 Ln I —W C C O b N O N a) y N C 15 01 N L N s O 0 c 0 N 0. N m J E o N C � w U) a �i rn L CM N N ,e d � 0 a) .Y is V r CD 10 C �M a c a1 N O N C J a)L�.. E C o � m m E m ro ° m ca a1 .' as CL co ` > G CO O O > O O N p C O co a) N O r co N b ro CL ti T y b N of "C N to N C V N CO n/ l6 CD N 'N to m c C 0 �w U C C C to C LL LL Q CC 0 LL N bN W 2 N L) 7 U o tL d 5 Q Q U— 0 Q d m (i a) m at m E ° E ` in in in ro U) in n n A Cm A A v v v N v tV v I c2 N 0 0 0 0 O o 00 °o 00 C chi 0 O O O O C O 0o 00 ton c` u°r U') � � w EH w r N_ O N N r N U) E _ E r y O C N ca L co ' U O I CA y o AD O N cO J N C T � O o � N O I 64 Q� G7 N O O O N O lfi N C m N L N X y w tC J a) c C 7 Z) N C O U a) �O d -47. Central Contra Costa Sanitary District January 27, 2012 TO: BOARD BUDGET AND FINANCE COMMITTEE VIA: JAMES M. KELLY, GENERAL MANAGER ?4 FROM: ANN E. FARREL P Y GENERAL MANAGER/DIRECTOR OF ENGINEERING SUBJECT: PRELIMINARY 2012 -13 10 -YEAR FINANCIAL PLAN INFORMATION Last year at this time, staff and the Board were starting a complex and very critical 10- year financial planning process. Rates had not been increased for two years and there were several very costly regulatory initiatives in play which were expected to add significant expense to our capital budget. In addition, health care and pension obligation costs continued to increase at rates significantly higher than inflation. After examining multiple expenditure and revenue scenarios, the Board requested that staff send out a Proposition 218 notice indicating that a two year rate increase of $30 per year was being considered. On June 2, 2011, after hearing public comments, the Board voted to adopt the two year $30 per year increase. Staff is starting the annual financial planning process, as we have done in past years, by bringing suggested assumptions and preliminary calculations to the Budget and Finance Committee for their review and input. This year we have also included a preliminary draft of the 10 -Year Plan. After incorporating the committee input, the draft 10 -Year Plan will be prepared and issued to the full Board. A presentation of the 10- Year Plan is scheduled for the February 16, 2012 Board meeting. On the following pages, the Committee will find a comparison of last year's and this year's 10 -year expenditure /revenue projections highlighting major differences followed by Attachment One, the detailed assumptions listing and spreadsheet for the preliminary draft FY 2012 -13 10 -Year Plan Scenario. This scenario represents the Prior Year Recommended Scenario updated with the Capital Expenditure recommendations from the December 2011 Board Workshop and updated benefit and other assumptions as documented. Attachment Two follows for comparison, which is the detailed assumptions and spreadsheet for the FY 2011 -12 Recommended Scenario. WWI 0-Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan BF Committee memo -AEF Comments 1- 24- 12.doc -1- The table below summarizes changes to the scenario model from 2011 to 2012 for the 10 -year period 2011 -12 to 2012 -13: Assum tion 2011 Model 2012 Model Capital Project Total capital expenditures of Total Capital expenditures of $373.1 Spending $386.8 million in the 10 -year million included in the 10 -Year Plan. period. This is $13.7 million less than prior year due to costs for new solids treatment were shifted to future years outside of the 10 -year window. Total Employee Current rate increase Current rate increase assumptions Benefits assumptions used — total used — total employee benefits in the (Including CCCERA employee benefits in the 10 -year 10 -year period = $386.2 million or and GASB 45) period = $369.8 million. $16.4 million higher than last year. CCCERA UAAL was $71 million for UAAL increased to $122.5 million for 2011 - 12 rate setting and grew to the 2013 -14 rate - setting — annual $100 million for 2012 - 13 rate additional amount paid over 18 future setting. years is approximately $1.9 million per year. Total CCCERA cost over 10 years is $24.7 million more than in last year's model. GASB 45 /OPEB $57.3 million in the 10 -year $83.0 million in the 10 -year period, and period. $25.7 million more than in 2011. Total O &M Expenses Total O &M expenses were Total O &M expenses in the 10 -year (Including CCCERA projected to be $846.7 million in period are $863.6 million and are $16.9 and GASB 45) the 10 -year period. million higher than in 2011. Increases in CCCERA and GASB 45 costs are offset by lower projections in other line items. SSC RUE 's Total RUE was 169,537 in 2011- Total RUE significantly less due to 12 to 178,437 in 2020 -21. lower number of connection and lower Commercial SSC revenue was water usage of commercial accounts. anticipated to recover in 2 years Total RUE ranges from 163,658 in which was overly optimistic. 2011 - 12 to 177,$58 in 2020 - 21. SSC Increase Total of $256 over 10 years Total of $306 over 10 years resulting in Projected by Model resulting in SSC of $597 in SSC of $677 in 2021 — 22. 2021-22. SSC Capital Assumed Capital Component Capital Component reduced from $39 Component increase from $39 to $49 in to $27 in 2012 — 13 to accommodate 2012-13. additional O &M expenses. As summarized above and detailed in the following attachments, significant increases in CCCERA and GASB 45 liabilities have resulted in associated increases in the sewer service charge to fund the 10 -Year Plan. While last years 10 -Year Plan resulted in the need for a SSC of $597 in year 2021 -22, in this year's preliminary draft plan the required SSC in year 2021 -22 has increased to $677, an increase of $80 over what was projected last year. Staff will be present to answer questions and receive input at the January 30, 2012 Committee meeting. This input will be incorporated into the Draft FY 2012 -13 Financial Plan which will be distributed to the Board in early February for discussion at the February 16, 2012 Board meeting. NAGM \10 -Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan BF Committee memo -AEF Comments 1- 24- 12.doc -2- Attachment One ATTACHMENT ONE CENTRAL CONTRA COSTA SANITARY DISTRICT FEBRUARY 16, 2012 BOARD FINANCIAL PLANNING WORKSHOP PRELIMINARY DRAFT SCENARIO ASSUMPTIONS For January 23, 2012 Board Budget & Finance Committee Scenario Premise: • The 2 -year, up to $30 SSC rate increase approved by the Board for 2011 -12 and 2012 -13 is displayed in the preliminary draft of the baseline scenario. The 2011 -12 O &M projection is based on 6 -month budget review and is the basis of future year projections. • The goal of this year's preliminary scenario is to change only significant assumptions used in the model for ease of comparison to the 2011 recommended scenario. The bullets in this section highlight significant differences from last year to this year. o Capital project spending assumptions presented at the December 15, 2011 CIB Workshop are used in the model. The impact in the 10 -year period is a $13.7 million reduction in the current year preliminary scenario because project costs for new solids treatment (digesters or new furnaces) were shifted to future years outside of the 10 -year window. o Employee benefits are updated based on current information and include known rate increases. The largest impacts are in the CCCERA rate increases and the GASB 45 Annual Required Contribution (ARC) discussed below. The CCCERA unfunded liability will increase by another $22 million for the 2012 -13 rate- setting process. $1.9 million per year, which is the approximate annual amount that is amortized over 18 years, is included beginning in 2012- 13 in the 10 -Year Plan model. This is in addition to the assumed regular annual increase for normal costs. CCCERA rate increases that are multiplied times salary are: 9.17% rate increase in 2011 -12, 13.79% rate increase in 2012 -13 and 10.34% rate increase in 2013 -14. Retirement costs in this year's model over the 10 -year period are $24.7 million higher than what was assumed in the 2011 model, mainly due to the large unanticipated UAAL increases in recent years due to de- pooling. ■ The GASB OPEB ARC increased to $8.3 million /year. The ARC used in the 2011 scenario ranged from $5.5 million to $6.0 million per year. The impact in the 10 -year period is $25.7 million more in the current 10 -Year Preliminary Scenario. o Positive O &M expense account variances in other line items, including salaries because of assumed savings due to retirements and hiring lags, help offset the additional CCCERA and OPEB costs. Total O &M expenses in the 10 -year period are $16.9 million higher in the current model compared to last year's 10 -Year model. !! FILENAME \p N. \GM \10 -Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan Attachment One - Prelim Scenario Assump 2012 13 AEF 1- 24- 12.docl -t- ATTACHMENT ONE CENTRAL CONTRA COSTA SANITARY DISTRICT FEBRUARY 16, 2012 BOARD FINANCIAL PLANNING WORKSHOP PRELIMINARY DRAFT SCENARIO ASSUMPTIONS For January 23, 2012 Board Budget & Finance Committee o The total number of RUE's is calculated by taking total SSC revenue in any given year divided by the SSC rate for that year. The total RUE count was significantly reduced in 2009 -10 ( -3,996 RUE) due to lower number of connection equivalents and lower water usage of commercial accounts that are billed based on water usage. In last year's model, staff assumed the total RUE count would return to previous levels in 2 years and added back 2,000 additional RUE in each of the 2 years. This was too optimistic. In this year's model, the 2011 -12 projected RUE is even lower and is calculated to be almost 6,000 RUE lower than the assumption used in 2011. To phase back RUE over time, 600 RUE per year are added back in the current model beginning in 2013- 14. The total RUE count almost catches up to the numbers used in the 2011 scenario; in 2020 -21 the current model shows total RUE at about 1,000 less than the prior year 2011 scenario. If last year's SSC rate increases were applied to the lower RUE assumptions, revenue would have calculated $14.6 million lower in the current model in the 10 -year period. Higher revenue amounts in other line items, such as Concord revenue from treatment plant capital improvements, helped soften projected SSC rate increases in the current 2012 scenario. The section below provides more information on assumptions used in the 10 -Year Plan scenarios. Revenue: • Interest Rates: 2010 -11 was updated to actual average interest rate of 0.40 %. Future years remained the same as the 2011 assumptions and gradually increase from 0.75% in 2012 -13 to a cap of 5.0 %. • Current 2011 -12 Property Tax Revenue is estimated to be $12.0 million versus a total budget of $12.2 million. In the 2011 model, property tax revenue was estimated to be $12.2 million for 2011 -12. • No property tax revenue growth is predicted through 2012 -13, and then 1 % per year increases are assumed through 2014 -15, 2% per year in 2015 -16, and then 3% per year going forward. • The State repayment of borrowed property tax in the amount of $1.1 million is the same assumption in this year's and last year's scenario.. !! FILENAME \p N: \GM \l0 -Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan Attachment One - Prelim Scenario Assump 2012 -13 AEF l- 24- 12.docl -2- ATTACHMENT ONE CENTRAL CONTRA COSTA SANITARY DISTRICT FEBRUARY 16, 2012 BOARD FINANCIAL PLANNING WORKSHOP PRELIMINARY DRAFT SCENARIO ASSUMPTIONS For January 23, 2012 Board Budget & Finance Committee • Connection fee rates are the same as in the 2011 model; in 2011 -12 the facility capacity fee is $5,465 and increases to $6,900 by 2021 -22. The pump zone fee is $7,071 in 2011 -12 and increases to $8,300 by 2020 -21. • The number of new connections per year is the same as projected in the 2011 scenario which were 800 connections in 2011 -12, 900 connections in 2012 -13, and then increase to 1,000 connections per year in 2013 -14 going forward. Expense /Expenditures /Debt: • Capital Project expenditures, that are based on the figures presented at the December 15, 2011 Board Workshop, are inflated by 1% in 2013-14,1.5% in 2014 -15, 2.0% in 2015 -16 and then 3% per year thereafter. These inflation assumptions are used in last year's and this year's scenarios. • O &M annual inflation varies in the 10 years projected, but in general, salaries are inflated by 3.5% per year and all other accounts by 3% per year, except for chemicals and utilities that fluctuate according to current market conditions. • Salary vacancy of 3 %, and benefit vacancy of 4% are used in the model. This means projections are reduced by 3% per year for salaries and 4% per year for benefits to account for unfilled positions. • Employee retiree and refilling assumptions are updated in 2011 -12 and remain the same as last year for future years. • For consistency when comparing scenarios, the large annual payments beginning in 2015- 16 to pay down our CCCERA UAAL presented in last year's Recommended Scenario are also included in the 2012 Recommended Scenario. In both scenarios, the payments total $75 million. • There is no new debt issued in either scenario. GASB 45 /OPEB: • The OPEB /GASB 45 ARC is $8.3 million per year ($50 of the SSC rate) based on the actuarial estimate by John Bartell. The $8.3 million per year is assumed in all 10 years. 1! FILENAME \p N: \GM \10 -Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan Attachment One - Prelim Scenario Assump 2012 -13 AEF I- 24- 12.docl -3- ATTACHMENT ONE CENTRAL CONTRA COSTA SANITARY DISTRICT FEBRUARY 16, 2012 BOARD FINANCIAL PLANNING WORKSHOP PRELIMINARY DRAFT SCENARIO ASSUMPTIONS For January 23, 2012 Board Budget & Finance Committee Funds Required /Available: The Funds Required calculation remains the same: 32% of next year's O &M + 30% of next year's Capital costs + 100% of Debt Service. The Funds Required formula is reviewed each year compared to actual spending. Funds required are defined as the amount of money held in cash and investments (liquid assets) that is needed on June 30th of any fiscal year to meet our cash flow needs through mid - December, when we receive our first sewer service charge and property tax payment from Contra Costa County. • Funds Available are made up of Running Expense, Sewer Construction Fund cash, and investment accounts. Keeping Funds Available above Funds Required eliminates the need for short -term borrowing for cash flow !! FILENAME \p N: \GM \10 -Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan Attachment One - Prelim Scenario Assump 2012 -13 AEF I- 24- 12.doc1 -4- i N -4 m N N v 0 O 7 3 O O O W O a 0 CD ? rn O_ V 0 00 r r T TI 0 4 C C CA) cD N 0 Ol D Q. 0 ,0 7V O co W cn U) O O W V N O O CA Q. pn N O O 0) N O 01 Oj t0 N U1 U1 O LrI P. O O N O N N C �_• LTI W O O M N O U) CD LTI O 0 m i W V O N 7V CA) tn c O j ( p V rt pj NO O 1 S � N N N IV 1 a o Ln0 1 1 (0 CD GOD i N p N N m 0 CA O_ O W N 1 N N V CO IV W N O I CO W CO p. N ' * P O_ ca 0 W 071 W ' to ? N O_ 4 V 'A N I OWD O CO 1 -4 V N ca O_ O O W U7 O P 1 N -4 m N N v 0 O 7 3 O O O W O i N 0 CD ? rn O_ V 0 00 0 0 0 4 O O � cD N V Ol D Q. 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V O 0 0 0 O v p 0 O f7 0 0 V 00 0o O V N `P N I� O O N v H O O 1 O O O O O O N v H F-1 N O O O O O O O O V 0 o 0 0 00 O N 0 O 0 N 0 O 0 O O O 0 0 0 v 0 O O O o 0 _ V1• O; ON v N v w w N N W N 00 w U'1 v W �--� to N 00 X000 W Ul 00 H v t" F-' O l0 Ul w ji i� v N v F-' V O Ul F-+ I� A n In N v (D (D N N O Ul .P O V w(D tD w 0 o V O i V .P O O In I 0� 2 v ^ 0 �D I.P O v �! O v --, NJ N j 0 0 i -ern mM d n Om I �a W z o N p n M i o M N�1n I O Z_ C z S m O 0 1 Z D m �m 0 � 0 m z D r 0 0 z a 0 0 O a N Z_ n v_ U) 7 r.� N Attachment Two ATTACHMENT TWO CENTRAL CONTRA COSTA SANITARY DISTRICT MARCH 3, 2011 BOARD FINANCIAL PLANNING WORKSHOP PRIOR YEAR SCENARIO ASSUMPTIONS For January 19, 2011 Board Budget & Finance Committee Revenue: • Assumptions for interest rates were lowered based on current information. Interest rates range from 0.5% in 2010 -11 and 2011 -12 and caps at 5.0% in 2020 -21. The 2010 scenario used a range from 1.3% to 5.5 %. • 2010 -11 Capital Revenue projections are estimated to be around $3 million less than budget. • O &M estimated revenue is based on the 6 -month review process, and is anticipated to be lower than budget. Our largest revenue source, the 2010 -11 SSC Revenue is anticipated to be $750,000 - $1.0 million below budget due to drought impact on commercial customers and the poor economy in general. • Current 2010 -11 Property Tax Revenue is estimated to be $12.2 million versus a total budget of $12.5 million. • The State repayment of borrowed property tax of $1.1 million is included in 2012- 2013. • No property tax revenue growth is predicted through 2012 -13, and then 1% per year increases are assumed through 2014 -15, 2% per year in 2015 -16, and then 3% per year going forward. Expense/Expenditures/Debt: • Capital Project spending assumptions presented at the December 16, 2010 CIB Workshop and updated after adoption of CAA 129 regulations for incinerator are used in the model. Specifically, the model includes a new nitrification project ($70 million in current dollars) but does not include the Concord Recycled Water project which would be partially funded by grants. • Capital Project inflation was reduced from 3 per year to 1% in 2012 -13, 1.5% in 2013 -14, 2.0% in 2014 -15 and then 3% per year thereafter. • O &M annual inflation varies in the 10 years projected, but in general, salaries are inflated by 3.5% per year and all other accounts by 3% per year, except for chemicals and utilities that fluctuate according to current market conditions. !! FILENAME \p MGM\10 -Year Financial Plan \10 -Year Financial Plan\2012 -13 \10 yr plan Attachment Two -Assumptions 2012 AEF 1-24 - 12.doc— -1- ATTACHMENT TWO CENTRAL CONTRA COSTA SANITARY DISTRICT MARCH 3, 2011 BOARD FINANCIAL PLANNING WORKSHOP PRIOR YEAR SCENARIO ASSUMPTIONS For January 19, 2011 Board Budget & Finance Committee • Includes employee retiree and refilling assumptions, and expense account assumption changes from Department Directors' review (such as utility cost fluctuations). • Salary vacancy of 3 %, and benefit vacancy of 4% are used in the model. This means projections are reduced by 3% per year for salaries and 4% per year for benefits to account for unplanned unfilled positions. Significant increases to retirement rates are included in the model. In 2011 -12, a 9% rate increase is confirmed, and includes de- pooling costs. 2012 -13 and 2013- 14 include 5% per year rate increases to cover market losses that will be carried forward on a rolling 5 -year smoothing basis. 2015 -16 forward assumes 1 % rate increases per year — this year's model retirement costs over a 10 -year period are $12 million higher than what was assumed in the January 2010 Workshop scenarios. • Additional $75 million in payments beginning in 2015 -16 to pay down the CCCERA UAAL. Medical Premiums are projected to increase by almost 16% in 2011 -12 (based on HealthNet projection to HR 12/2010). The increase is due in part to the Health Care Reform Act. 6.5% - 7.5% rate increases are used in future years based on the GASB 45 actuarial assumptions for consistence. Medical expenses are $10 million higher in total in the 2011 scenario compared to 2010, mainly due to the large increase in 2011 -12, and the compounding effect in future years. 2012 -13 based on current actuarial assumptions. GASB 45 /OPEB: The OPEB /GASB 45 annual required contribution (ARC) is $6,676,364 ($39 of the SSC rate) based on the actuarial estimate and then ranges from $5.5 - $6.0 million in future years. Updated information will be provided after the actuarial analysis is done. Funds Required/Available: • The Funds Required calculation remains the same: 32% of next year's O &M + 30% of next year's Capital costs + 100% of Debt Service. The Funds Required formula is reviewed each year compared to actual spending. • Funds Available are made up of Running Expense and Sewer Construction Fund cash and investment accounts. Keeping Funds Available above Funds Required eliminates the need for short-term borrowing for cash flow. !! 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