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HomeMy WebLinkAbout05.c.2) (Handout) Application for District Transparency Certificate of Excellence from the California Special Districts Association (CSDA) Leadership FoundationCentral V) Sanitas #t PHONE: (925) 228 -9500 FAX. (925) 676 -7211 www.centralsan.org ROGER BAILEY September 9, 2013 G<nrral Afanager KENTON L ALAI Counsel fi,r the District (510) 808.2000 Special District Leadership Foundation (SDLF) ELAINE BOEHAIE 1112 1 Street, Suite 200 Secreton of theDictrict Sacramento, CA 95814 Re: Application for District Transparency Certificate of Excellence Dear SDLF Staff: Enclosed are the application and supporting materials for the Central Contra Costa Sanitary District to be awarded the District Transparency Certificate of Excellence. Should you need anything additional to complete this process, please call me at 925 - 229 -7303. Sincerely, Elaine R. Boehme, CIVIC Secretary of the District Enclosure BOARD OF DIRECTORS JAMES A NEJEDLY President • DAVID R WILLIAMS, Precedent Pro Tem • PAUL H CAUSEY • MICHAEL R Hr GILL • TAD J PILECKI 41 w Q SPECIAL DISTRICT LEADERSHIP FOUNDATION SHOWCASE YOUR DISTRICT'S COMMITMENT TO TRANSPARENCY Purpose To promote transparency in the operations and governance of special districts to the public/ constituents and provide special districts with an opportunity to showcase their efforts in transparency. Duration District Receives 2 Years • Certificate for display (covering 2 years) • Press release template Application Cost Recognition on the SDLF website FREE Letter to legislators within the district's boundaries announcing the achievement • Recognition in CA Special District magazine and the CSDA eNews Basic Requirements CL;RRENT ETHICS TRAINING FOR ALL BOARD MEMBERS (Government Code Section 53235) [( Provide copies of training certificates along with date completed COMPLIANCE WITHTHE RALPH M. BROWN ACT (Government Code Section 54950 et. a]) �Provide ovide copy of current policy related to Brown Act compliance copy of a current meeting agenda (including opportunity for public comment) L40PTION OF POLICY RELATED TO HANDLING PUBLIC RECORDS ACT REQUESTS VProvide copy of current policy ADOPTION OF REIMBURSEMENT POLICY, IF DISTRICT PROVIDES ANY REIMBURSEMENT OF ACTUAL AND NECESSARY EXPENSES (G ernment Code Section 53232.2 (h)) Provide copy of current policy ANNUAL DISCLOSURE OF BOARD MEMBER OR EMPLOYEE REIMBURSEMENTS FOR INDIVIDUAL CHARGES OVER $100 FOR SERVICES OR PRODUCTS. THIS INFORMATION IS TO BE MADE AVAILABLE FOR PUBLIC INSPECTION. "INDIVIDUAL CHARGE" IN- CL ES, BUT IS NOT LIMITED TO: ONE MEAL, LODGING FOR ONE DAY, ORTRANSPORTATION. (Government Code Section 53065.5) Provide copy of the most recent document and how it is accessible. TIMELY FILING OF STATE CONTROLLER'S SPECIAL DISTRICTS FINANCIALTRANSACTIONS REPORT - INCLUDES COMPENSA- VT DISCLOSURE. (Government Code Section 53891) Provide copy of most recent filing. SDLF staff will ver fy that district is not listed on the State Controller's non - compliance list' CONDUCT ANNUAL AUDITS (Government Code Section 26909 and 12410.6) eProvide copy of most recent audit and management letter and a description of how /where documents were made available to the public OTHER POLICIES — HAVE CURRENT POLICIES ADDRESSINGTHE FOLLOWING AREAS Pro de copies of each: onflict of Interest fRode of Ethics /Values /Norms or Board Conduct inancial Reserves Policy Showcase your District's Commitment to Transparency 1,, i,t,Cl -1RV <v \R N( CFt'1'l1l_ 1l 0i [x( i I II J_A }'PI Il,ATPA Website Requirements MAINTAIN A DISTRICT WEBSITE WITH THE FOLLOWING ITEMS REQUIRED. (provide Website link) RRee`Jn'red items available to the public: �I!d ames of Board Members and their terms of office ame of general manager and key staff along with contact information V Vlection procedure and deadlines oard meeting schedule (Regular meeting agendas must be posted 72 hours in advance pursuant to Government Code Section 54954.2 (a)(1) and ,lGovernment Code Section 54956 (a)) District's mission statement (escription of district's services/ functions and service area L Authorizing statute /Enabling Act (Principle Act or Special Act) �urrent District budget mcost recent financial audit hive of Boa rd meeting minutes for at least the last 6 months of compensation of Board Members and Staff and /or link to State Controller's webpage with the data AD TIONAL ITEMS — website also must include at least 4 of the following items: Post Board Member ethics training certificates ❑ Picture, biography and e-mail address of board members Last (3) years of audits ❑ Reimbursement and Compensation Policy ❑ Financial Reserves Policy V Online /downloadable public records act request form ❑Audio or video recordings of board meetings [9 >1ap of district boundaries/ service area LVLink to California Special Districts Association mapping program ❑ Most recent Municipal Service Review (MSR) and Sphere of Influence (SOI) studies (full document or link to document on another site) Outreach /Best Practices Requirements (Must complete at least 2 of the following items) REGULAR DISTRICT NEWSLETTER OR COMMUNICATION (PRINTED AND /OR ELECTRONIC) THAT KEEPSTHE PUBLIC, CONSTITU- EMTS AND ELECTED OFFICIALS UP -TO -DATE ON DISTRICT ACTIVITIES (at least twice annually) W Provide copy of most recent communication and short description on the frequency of the communication, how it's distributed and to whom. COMMUNITY NOTIFICATION THROUGH PRESS RELEASE TO LOCAL MEDIA OUTLET ANNOUNCING UPCOMING FILING DEADLINE FOR ELECTION AND PROCESS FOR SEEKING POSITION ON THE DISTRICT BOARD, PRIORTO THAT ELECTION (OR PRIOR TOTHE MOST RECENT DEADLINE FOR CONSIDERATION OF NEW APPOINTMENTS FOR THOSE DISTRICTS WITH BOARD MEMBERS APPOINTED TO FIXED - TERMS). ❑ Provide copy of the press release (and the printed article if available) COMPLETE SALARY COMPARISON /BENCHMARKING FOR DISTRICT STAFF POSITIONS USING A REPUTABLE SALARY SURVEY (AT LEAST EVERY SYEARS) ❑ Provide brief description of the survey and process used as well as the general results SPECIAL COMMUNITY ENGAGEMENT PROJECT Designed and completed a special project promoting community engagement with the district (potential projects may be broad in nature or focus on�ecific issues such as rate - setting, recycled water, identifying community needs, etc.) I,rl Submit an overview of the community engagement project reviewing the process undertaken and results achieved HOLD ANNUAL INFORMATIONAL PUBLIC BUDGET HEARINGS THAT ENGAGE THE PUBLIC (OUTREACH, WORKSHOPS, ETC.) OR TO ADOPTING THE BUDGET Provide copy of most recent public budget hearing notice and agenda. Showcase your District's Commitment toTransporencv I ' MCIRICI IRA \SPARF \Cl LLRII IICATI;OFFXLFIIF \LLAPPIIL1TIO' r r r 1 Lz" Cr COMMUNITY TRANSPARENCY REVIEW The district would be required to obtain a completed overview checklist from at least 2 of the following individuals (the district may choose to conduct the overview with these individuals simultaneously or separately): ❑ Chair of the County Civil Grand Jury ❑ Editor of a reputable local print newspaper (only one may count toward requirement) ❑ LAFCO Executive Officer ❑ County Auditor- Controller ❑ Local Legislator (only one may count toward requirement) ❑ Executive Director or President of local Chamber of Commerce ❑ General Manager of a peer agency (special district, city or county) ❑ Provide proof of completion signed by individuals completing Community Transparency Review SHOWCASE YOUR DISTRICT'S COMMITMENT TO TRANSPARENCY Submit Application Submit this application along with all required documentation to, SPECIAL DISTRICT LEADERSHIP FOUNDATION 11121 Street, Suite 200 Sacramento, CA 95814 Phone: 916-231-2939 • Fax: 916 -442 -7889 DISTRICT: MAILING ADDRESS: A. Q _ • '� - -- — – — — – — CITY STATE ZIP: Qj4%Q;_3 – – i CONTACT NAME CONTACTTITLE PHONE- (4R-jr j,i.�� .�10V3 -- `F• FAX CC%%S;, EMAIL l�oM�w�w� e� \��b -� WEBSITE `y�j „• ASSEMBLY MEMBER(S)y: SENATOR': LOCAL NEWSPAPER(S):`4 \MODS I CERTIFY THAT THE INFORMATION SUBMITTED IS ACCURATE SIGNATURE /) AND COMPLETETO THE BEST OF MY KNOWLEDGE Showcase) our District's Commitment to'Gansparencv Ir SDLF DISTRICT TRANSPARENCY CERTIFICATE OF EXCELLENCE DOCUMENT INDEX REQUIREMENTS REF # ! DOCUMENT BASIC REQUIREMENTS — Current Ethics Training for all Board Members (GC § 53235) --------------- - -- • Provide copies of training certificates along with date 1a -e • Ethics Training certificates completed _ ~Compliance with the Ralph M. Brown Act (GC § 54950 et. al) • Provide copy of current policy related to Brown Act 2a CCCSD Code of Laws 2.16.020 I compliance (Brown Act summary and full code are also • Provide copy of a current meeting agenda (including included in Board Orientation Binders) opportunity for public comment) 2b • Current (August 15, 2013) Board Meeting I Agenda I Adoption of policy related to handling Public Records Act requests • Provide copy of current policy - ---------- -- -- - -- -- -- -- 3 • Administrative Procedure - - - - -- — - -- - Adoption of Reimbursement Policy, if district provides any 4a — - - - -- -- — Travel and Reimbursement Policy BP 008 reimbursement of actual and necessary expenses (GC § 53232.2 (b)) j 4b • Board Compensation Resolution 2008 -109 • Provide copy of current policy Annual disclosure of board member or employee reimbursements for individual charges over $100 for services or products. This information is to be made available for public inspection. "Individual charge" includes, but is not limited to: one meal, lodging for one day, or transportation. (GC § 53065.5) • Employee and Board Member • Provide copy of the most recent document and how it is 5 Reimbursements Fiscal Year 2012 -13 _ _accessible Timely filing of State Controller's Special Districts Financial • Documentation showing submission of Transactions Report - includes compensation disclosure (GC § 53891) financial transactions and salaries for employees ` • Provide copy of most recent filing; SDLF staff will verify that I 6 and Board Members (Special Districts Financial district is not listed on the State Controller's 'non - compliance list' Transactions Report State Controller's Financial — Transaction Report) - - -� Conduct Annual Audits (GC § 26909 and 12410.6) --------- - - - - -- —� • Provide copy of most recent audit and management letter and 7a . Audit letter I a description of how /where documents were made available to the • Management letter i public Both are included in the Agenda Backup for the 10/18/12 Board Meeting, Item 8.a., (hard copy attached) on our website I http: / /weblink. centralsan.dst.ca.us /WebLink8 /0 /doc /656411 /Paeel.aspx Other Policies - have current policies addressing the following areas i (provide copies of each): • Conflict of Interest 8a • Conflict of Interest Code • Code of Ethics /Values /Norms of Board Conduct 8b • Board Members' Duties and Responsibilities • Financial Reserves Policy section of Board Guidelines Binder 8c • Financial Reserves (Funds Required) — I Guidelines i Central Contra Costa Sanitary District District Transparency Certificate of Excellence Application SDLF DISTRICT TRANSPARENCY CERTIFICATE OF EXCELLENCE DOCUMENT INDEX - ---------- - ---- - - -------- --- - - - - -- REQUIREMENTS REF # DOCUMENT WEBSITE REQUIREMENTS Maintain a district website with the following items www.centralsan.org (provide website link; all are required) • Names of Board Members and their terms of office http://www.centralsan.org/index.cfm?navld=69& • Name of general manager and key staff along with contact i http• //www.centralsan.org/index.cfm?navld=75 information • Election procedure and deadlines i http://www.centralsan.org/index.cfm?navid=69 • Board meeting schedule (regular meeting agendas must be posted I http://www.centralsan.org/index.cfm?navld=70 72 hours in advance pursuant to Government Code Section 54954.2 (a)(1) and Government Code Section 54956 (a)) • District's mission statement http://www.centralsan.org/index.cfm?navid=63 • Description of district's services/functions and service area http://www.centralsan.org/index.cfm?navld=65 • Authorizing statute/enabling act (Principle Act or Special Act) http://Iibrary.municode.com/index.aspx?clientld=16258 • Current district budget http://www.centralsan.org/documents/2012 13 OM Debt Service Self Ins and Staffing Plan Budgets.pd • Most recent financial audit http://www.centralsan.org/documents/CAFR 2012.pdf • Archive of Board meeting minutes for at least the last 6 months http://www.centralsan.org/applications/agendas-action- summaries-minutes.cfm?nav1d=71 • List of compensation of Board Members and staff and/or link to State Controller's webpage with the data i http://www.centralsan.org/index.cfm?navid=1150 http://www.centralsan.org/documents/FPPC Form 806 pdf http: / /www.sco.ca.gov /compensation search.html - - - -- --------- Website also must include at least 4 of the following items: • Post Board Member ethics training certificates j httl2:Hcentralsan.or2/index.cfm?navld=69 • Picture, biography and email address of board members • Last 3 years of audits (inside CAFRs) http://www.centralsan.org/index.cfm?navld=78 • Reimbursement and Compensation Policy (in Code of Regulations) • Financial Reserves Policy • Online/clownloaclable Public Records Act request form http://centralsan.oriz/index.cfm?navid=368 • Audio or video recordings of board meetings • Map of district boundaries/service area http://www.centralsan.org/index.cfm?navld=65 • Link to California Special Districts Association mapping program http://www.centralsan.org/index.cfm?navld=1112 • Most recent Municipal Service Review (MSR) and Sphere of Influence (SOI) studies (full document or link to document on I. another site) Central Contra Costa Sanitary District District Transparency Certificate of Excellence Application SDLF DISTRICT TRANSPARENCY CERTIFICATE OF EXCELLENCE DOCUMENT INDEX REQUIREMENTS REF # ' DOCUMENT OUTREACH /BEST PRACTICES REQUIREMENTS Must complete at least 2 of the following items: _ Regular district newsletter or communication (printed and /or electronic) that keeps the public, constituents and elected officials up- to -date on district activities (at least twice annually) • Provide copy of most recent communication and short 9 • Pipeline newsletter distributed three times description on the frequency of the communication, how it's per year by mail distributed and to whom Community notification through press release to local media outlet announcing upcoming filing deadline for election and process for seeking a position on the district board, prior to that election (or prior to the most recent deadline for consideration of new appointments for those districts with board members appointed to fixed - terms) • Provide copy of the press release (and the printed article if j available) Complete salary comparison /benchmarking for district staff positions using a reputable salary survey (at least every 5 years) • Provide brief description of the survey and process used as well as the general results_ — Special Community Engagement Project • Designed and completed a special project promoting community engagement with the district (potential projects may be ` 10 broad in nature or focus on specific issues such as rate - setting, . Pleasant Hill Instructional Garden recycled water, identifying community needs, etc.) information • Submit an overview of the community engagement project, reviewing the process undertaken and results achieved Hold annual informational public budget hearings that engage the I 11a . 5/16/13 Board Agenda setting Public public (outreach, workshops, etc.) prior to adopting the budget Hearings for budgets • Provide copy of most recent public budget hearing notice and 11b . Position Papers authorizing Notices of Public agenda Budget Hearings = -- ilc • Notices of Public Budget Hearings Community Transparency Review The district would be required to obtain a completed overview checklist from at least 2 of the following individuals (the district may choose to conduct the overview with these individuals simultaneously or separately): i • Chair of the County Civil Grand Jury IJ • Editor of a reputable local print newspaper (only one may count toward requirement) i • LAFCO Executive Officer • County Auditor - Controller • Local Legislator (only one may count toward requirement) • Executive Director or President of local Chamber of Commerce • General Manager of a peer agency (special district, city or county) j Central Contra Costa Sanitary District District Transparency Certificate of Excellence Application meyers nave CERTIFICATE OF ATTENDANCE AB 1234 TRAINING Provider: Meyers, Nave, Riback, Silver & Wilson Subject Matter /Title: AB 1234 Ethics Training for Elected and Appointed Officials Date and Time: December 13, 2012, 2:00 -4:00 p.m. Location: Central Contra Costa Sanitary District 5019 Imhoff PI, Martinez, CA 94553 -4392 Length of Activity: 2.0 hours To Be Completed After Participation In The Above -Named Activit>r By signing below, I certify that I participated in the activity described above: Print Name: Paul H. Causey Signature: REMINDER: A local agency shall maintain these records fot at I ast five (5) years after local officials receive the training. These records are public records subject to disclosure under the California Public Records Act (Chapter 3.5 [commencing with Section 62501 of Division 7 of Title 1). meyers nave CERTIFICATE OF ATTENDANCE AB 1234-TRAINING Provider: Meyers, Nave, Riback, Silver & Wilson Subject Matter /Title: AB 1234 Ethics Training for Elected and Appointed Officials Date and Time: December 13, 2012) 2:00 -4:00 p.m. Location: Central Contra Costa Sanitary District 5019 Imhoff PI, Martinez, CA 94553 -4392 Length of Activity: 2.0 hours To Be Completed After Participation In The Above -Named Activity By signing below, I certify that I participated in the activity described above: Print Name: Michael R. McGill Signature: REMINDER: A local agency shall maint ' these records for at least five (5) years after local officials receive the training, These records r`e public records subject to disclosure under the California Public Records Act 3.5 Section 6250] Division 7 Title 1). (Chapter [cornrr�encing with of of Public Service Ethics Education Proof of Participation Certificate Participant Name: % ll !hoel R. lgC'`t 1/ Course Date & Time: August 10, 2012 9:30 a.m. Location: CASA Conference, Monterey Eligible Credit: 2 Hours (Requires Attendance for Entire Session) This course is an overview course on all public service ethics issues necessary to satisfy the requirements of Article 2.4 of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, including the following: Laws relating to personal financial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict -of- interest laws. • Laws relating to claiming perquisites ( "perks ") of office, including, but not limited to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies. • Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws. • Laws relating to fair processes, including, but not limited to, common law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members; and . General ethical principles relating to public service. The California Association of Sanitation Agencies affirms that this course satisfies the guidelines issued by the Fair Political Practices Commission and Attorney General for course sufficiency and accuracy. To be completed by participant: By signing below, I certify that I signed in at this session, participated in the activity described above and am en ' o claim • Z- ethics education credit hour(s Participant Signature NOTE TO PARTICIPANT.- Please provide a copy of this proof of participation to the custodian for such records at your agency. In addition, we recommend you make a copy of this proof of participation for Your own records to retain for at least five _years. These certificates are only available at this program; duplicates will not be issued. Control No: 341735 Public Service Ethics Education Online Proof of Participation Certificate Date of Completion: Dec 31, 2012 Training Time *: 2 hr. 16 min. This course is an overview course on all public service ethics issues necessary to satisfy the requirements of Article 2.4 of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, including the following: Laws relating to personal financial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict -of- interest laws. . Laws relating to claiming perquisites ( "perks ") of office, including, but not limited to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies. • Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws. Laws relating to fair processes, including, but not limited to, common law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members; and • General ethical principles relating to public service. The Fair Political Practices Commission and Attorney General have reviewed this course for course sufficiency and accuracy. By signing below, I certify that I fully reviewed the content of the entire online AB 1234 course approved by the Attorney General and Fair Political Practices Commission and am entitled to claim two hours of public service ethics law and principles credit. Participant Signature central contra costa sanitery district Agency Name jim nejedly Participant Name NOTE TO PARTICIPANT: Please provide a copy of this proof of participation to the custodian for such records at your agency. in addition, we recommend you make a copy of this proof of participation for your own records to retain for at least five years. To preserve the integrity of the online certification process; these certificates are only available Upon completing the online session. * To satisfy AB 1234 requirements, this certificate must reflect that the public official spent two hours or more reviewing the materials presented in the online course. If the certificate reflects less than two hours, the participant should have on file additional certificates demonstrating that the official has satisfied the entire two hour reouirement_ m eye rs nave CERTIFICATE OF ATTENDANCE AB 1234 TRAINING Provider: Meyers, Nave, Riback, Silver & Wilson Subject Matter /Title: AB 1234 Ethics Training for Elected and Appointed Officials Date and Time: December 13, 2012,2:00-4:00 p.m. Location: Central Contra Costa Sanitary District 5019 Imhoff PI, Martinez, CA 94553 -4392 Length of Activity: 2.0 hours To Be Completed After Participation In The Above -Named Activity By signing below, I certify that I participated in the activity described above: Print Name: Tad J. Pilecki Signature: -cup " REMINDER: A local agency shall maintain these records for at least five (5) years after local officials receive the training. These records are public records subject to disclosure under the California Public Records Act (Chapter 3.5 [commencing with Section 6250] of Division 7 of Title 1). Control No: 343818 Public Service Ethics Education Online Proof of Participation Certificate Date of Completion: Dec 30, 2012 Training Time`: 2 hr. 0 min. This course is an overview course on all public service ethics issues necessary to satisfy the requirements of Article 2.4 of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, including the following: Laws relating to personal financial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict -of- interest laws. Laws relating to claiming perquisites ("perks") of office, including, but not limited to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies. Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws. Laws relating to fair processes, including, but not limited to, common law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members; and • General ethical principles relating to public service. The Fair Political Practices Commission and Attorney General have reviewed this course for course sufficiency and accuracy. By signing below, I certify that I fully reviewed the content of the entire online AB 1234 course approved by the Attorney General and Fair Political Practices Commission and am entitled to claim two hours of public service ethics law and principles credit. I � David Williams Participant Signature Participant Name Central Contra Costa Sanitary District Agency Name NOTE TO PARTICIPANT.' Please provide a copy of this proof of participation to the custodian for such records at your agency. In addition, we recommend you make a copy of this proof of participation for your own records to retain for at least five years. To preserve the integrity of the online certification process, these certificates are only available upon completing the online session. * To satisfy AB 9234 requirements, this certificate must reflect that the public official spent two hours or more reviewing the materials presented in the online course. If the certificate reflects less than two hours, the participant should have on file additional certificates demonstrating that the official has satisfied the entire two hour requirement. Municode Page 1 of 2 Central Contra Costa Sanitary District, California, Code of Laws >> Title 2 - ADMINISTRATION >> Chapter 2.16 - COUNSEL FOR THE DISTRICT >> Chapter 2.16 - COUNSEL FOR THE DISTRICT Sections: 2.16.010 - Counsel for the District. 2.16.020 - Duties. 2.16.030 - License to practice law. 2.16.040 - Experience. 2.16.010 - Counsel for the District. Under direction of the District Board, and in coordination with the General Manager, the District Counsel shall act as attorney for the District. (Ord. 253 § 1(Exh. A(part)), 2008) 2.16.020 - Duties. A. The Counsel for the District shall act as attorney for the District as required in all matters affecting District affairs, except in those areas, or subject matters, where special counsel are from time to time employed and special responsibilities assigned to said special counsel. B. Within the foregoing limitation, and in fulfilling duties as attorney for the District, the District Counsel shall: attend meetings of the District Board and such additional committee meetings, conferences and hearings as may from time to time be required to provide legal counsel and guidance; oversee application of the Ralph M. Brown Act to District meetings and maintain records in conformance with said act; prepare opinions as to applicable law when required by the circumstances, or requested by the District Board or General Manager; prepare such legal documents, including contracts and conveyances, as may be required, and to prosecute and defend such litigation as the interest of the District shall require; assist officers and employees of the District by advice upon legal matters related to the administration of the District, and engage in such research, studies and reports as may be indicated in the progress of his work. C. The Counsel for the District may practice law independent of District work in an office maintained at his own expense, including necessary stenographic and research services; provided, however, that such practice, and the clients represented therein, shall not conflict with his responsibility to the District. (Ord. 253 § 1(Exh. A(part)), 2008) 2.16.030 - License to practice law. The District Counsel shall be admitted to practice law in California and shall have active membership in the California State Bar. (Ord. 253 § 1(Exh. A(part)), 2008) http: / /library.municode.com/ print. aspx? h= &clientID= 16258 &HTMRequest =http %3 a %2f... 5/16/2013 Municode 2.16.040 - Experience. Page 2 of 2 The District Counsel shall have two years' comprehensive experience in the law of special districts, eminent domain, state and federal environmental protection, state and federal grant administration, legislative draftmanship, and conduct of public hearings. (Ord. 253 § ?(Exh. A(part)), 2008) http: // library. municode .com /print.aspx ?h= &clientID= 16258 &HTMRequest= http %3a %2£.. 5/16/2013 October 2012 Secretary of the District The Secretary of the District is one of the three Executive Management positions appointed by and reporting directly to the Board Members. The other positions are the General Manager and District Counsel. The District Code states, in part, that ".... The Secretary of the District makes independent decisions as necessary to implement Board requests, decisions and official actions; serves as custodian of the official records of the District; attends meetings of the District Board and such additional Committee meetings, conferences and hearings as may from time to time be required; and participates and coordinates with management group in meetings and projects." The Secretary of the District acts for the Board Members in a variety of executive, administrative, legal and record - keeping functions, and is part of the District Management Team. These functions include preparation of the Board agendas, minutes, compliance with legal noticing, the Brown Act, records management, elections, Fair Political Practices Commission requirements, ethics compliance and special projects. Central Contra Costa Sanitary District L Central Contra Costa Sanitary District BOARD MEETING AGENDA Board Room Thursday September 5, 2013 2:00 p.m. INFORMATION FOR THE PUBLIC BOARD OF DIRECTORS: JAMES A. NEJEDLY President DAVID R. WILLIAMS President Pro Tem PAUL H. CAUSEY MICHAEL R. McGILL TAD J. PILECKI PHONE. (925) 228 -9500 FAX: (925) 676 -7211 www.centralsan.org Anyone wishing to address the Board of Directors is requested to complete a speaker's card and submit it to the Secretary of the District. In addressing the Board, speakers are requested to step to the podium and state their name and address for the record. The Board President may direct questions to any member of the audience as appropriate at any time during the meeting. All matters listed under the CONSENT CALENDAR are considered to be routine by the Board and will be enacted by one motion. There will be no separate discussion of these items unless requested by a Member of the Board or the public prior to the time the Board votes on the motion to adopt. ADDRESSING THE BOARD ON AN ITEM ON THE AGENDA Persons wishing to speak on PUBLIC HEARINGS and OTHER MATTERS listed on the agenda will be heard when the President calls for comments from the audience, except on public hearing items previously heard and closed to public comment. The President 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 Board for discussion and action. There is no further comment permitted from the audience unless invited by the Board. ADDRESSING THE BOARD ON AN ITEM NOT ON THE AGENDA In accordance with state law, the Board is prohibited from discussing matters not calendared on the agenda. You may address the Board on any matters not listed on the agenda, and which are within its 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 agenda items are available for public review at the Reception Desk, 4849 Imhoff Place, Martinez, and on the District's website at www.centralsan.org. Not every agenda item is accompanied by written supporting material. Reports and information relating to agenda items distributed within 72 hours of the meeting to a majority of the Board are also available for public inspection at the Reception Desk and on the website. During the meeting, information and supporting materials are available in the Board 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. September 5, 2013 Board Agenda Page 2 ROLL CALL a. Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. Receive the National Association of Clean Water Agencies (NACWA) Platinum 15 Peak Performance Award. (5 minute staff presentation.) Staff Recommendation: Plant Operations Division Manager Alan Weer will present the award to President Nejedly. 4. CONSENT CALENDAR Staff Recommendation (Motion Required): Adopt the Consent Calendar as recommended. a. Approve minutes of August 1, 2013 Board meeting. b. Approve expenditures dated September 5, 2013. Reviewed by Budget and Finance Committee. C. Receive July 2013 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. d. Adopt Resolution 2013 -030 establishing the Sewer Construction Fund and Debt Service Fund appropriations limit in the amount of $88,919,318 for Fiscal Year 2013 -14, in accordance with Article XIII B of the California Constitution and select the change in the California per capita personal income percentage for use in computing the appropriations limit. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 6. PUBLIC HEARINGS a. Consider adopting Resolution 2013 -031 directing that delinquent charges related to the property located at 3382 Johnson Road in Lafayette be placed on the Contra Costa County property tax roll for collection in five annual installments starting in Fiscal Year 2013 -14. Continued from July 25, 2013. Reviewed by Budget and Finance Committee. (5 minute staff presentation.) Staff Recommendation (Motion and 4 Affirmative Votes Required): Adopt Resolution 2013 -031 directing that delinquent charges related to the property located at 3382 Johnson Road in Lafayette be placed on the Contra Costa County property tax roll for collection in five annual installments starting in Fiscal Year 2013 -14. September 5, 2013 Board Agenda Page 3 7. BIDS AND AWARDS a. Adopt Resolution 2013 -032 authorizing the General Manager to enter into a sole- source contract with Solar Turbines, Inc. in an amount not to exceed $650,000 for the installation of fuel and control system upgrades to the cogeneration system, Cogen Controls Upgrade, District Project 7308, pursuant to Public Contract Code Section 3400(c)(3) and Purchasing Procedures Manual Section 5.3.15; making findings in connection with said project; and approve a supplemental authorization of $800,000 to the Treatment Plant Program of the Fiscal Year 2013 -14 Capital Improvement Budget. Approval recommended by Capital Projects Committee. (5 minute staff presentation.) Staff Recommendation (Motion Required): Adopt Resolution 2013 -032 authorizing the General Manager to enter into a sole- source contract with Solar Turbines, Inc. as proposed, including making the appropriate findings; and approve a supplemental authorization of $800,000 to the Treatment Plant Program of the Fiscal Year 2013 -14 Capital Improvement Budget in connection with District Project 7308. 8. REPORTS a. General Manager 1) Update on Treatment Plant Optimization Evaluation for Ammonia Removal. (15 minute staff presentation.) Staff Recommendation: Receive the update. 2) Update on closure of Cleanup and Abatement Order for Bollinger Canyon leachfield. (No presentation is planned, staff will be available to answer questions.) Staff Recommendation: Receive the update. 3) Announcements Staff Recommendation: Receive the announcements. b. Counsel for the District 1) Request for waiver with regard to Meyers Nave's representation of the City of Walnut Creek. (2 minute staff presentation.) Staff Recommendation: Authorize the General Manager to execute waiver. September 5, 2013 Board Agenda Page 4 C. Secretary of the District d. Board Members 1) Board Member reports on future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses; recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses. Member Causey • August 21 -24, 2013 — California Association of Sanitation Agencies (CASA) Conference, San Diego (expenses). Member McGill • August 19, 2013 — Enterprise Committee meeting — Member McGill (stipend) and President Nejedly (stipend). • August 21 -24, 2013 — California Association of Sanitation Agencies (CASA) Conference, San Diego (expenses). • September 3, 2013 — Budget and Finance Committee meeting — Member McGill (stipend) and President Nejedly (stipend). • September 4, 2013 — East Bay Leadership Council Luncheon with Congressman George Miller (expenses). Member Pilecki • August 27, 2013 — Human Resources Committee meeting — Member Pilecki (stipend) and Member Williams (stipend). • August 30, 2013 — Environmental Services Committee meeting — Member Pilecki (stipend) and Member Causey (stipend). • August 30, 2013 — Capital Projects Committee meeting — Member Pilecki and Member Causey. President Nejedly Staff Recommendation: Receive the reports. 2) Announcements Staff Recommendation: Receive the announcements. September 5, 2013 Board Agenda Page 5 9. REAL PROPERTY a. Authorize the General Manager to execute a new lease agreement with County Quarry Products LLC commencing October 1, 2013, with a potential term of nine years and three months, through December 31, 2022, for continued operation of a concrete and asphalt recycling operation on the property located at 5501 Imhoff Drive in Martinez (APN 159- 140 -052). Approval recommended by the Enterprise Committee. (5 minute staff presentation.) Staff Recommendation (Motion Required): Authorize the General Manager to execute a new lease agreement with County Quarry Products LLC as proposed. 10. BUDGET AND FINANCE a. Receive Adjusted Operations and Maintenance (O &M) June 2013 Year -End Financial Statements and Investment Report (Period 13). Reviewed and receipt recommended by Budget and Finance Committee on August 12, 2013. (5 minute staff presentation.) Staff Recommendation (Motion Required): Receive Adjusted O &M June 2013 Year -End Financial Statements and Investment Reports. b. Receive Capital Improvement Budget (CIB) June 30, 2013 Year -End Status Report. Reviewed and receipt recommended by Capital Projects Committee. (5 minute staff presentation.) Staff Recommendation (Motion Required): Receive CIB June 30, 2013 Year -End Status Report. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 12. SUGGESTIONS FOR FUTURE AGENDA ITEMS 13. ADJOURNMENT September 5, 2013 Board Agenda Page 6 CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD CALENDAR DATE/TIME MEETING /ATTENDEES LOCATION SEPTEMBER 2013 Tuesday Budget and Finance Committee Meeting 1470 Executive Lane, Suite 200, September 3 McGill, Nejedly Concord 3:00 p.m. Thursday Board Meeting Board Room September 5 Board of Directors 2:00 p.m. Monday Enterprise Committee Meeting 1470 Executive Lane, Suite 200, September 9 McGill, Nejedly Concord 3:00 p.m. Monday Budget and Finance Committee Meeting 1470 Executive Lane, Suite 200, September 16 McGill, Nejedly Concord 3:00 p.m. September 16 -19 California Special Districts Association (CSDA) Monterey Annual Conference McGill Thursday Board Meeting Board Room September 19 Board of Directors 2:00 p.m. OCTOBER 2013 Monday Budget and Finance Committee Meeting 1470 Executive Lane, Suite 200, September 30 McGill, Nejedly Concord 3:00 p.m. Thursday Board Meeting Board Room October 3 Board of Directors 2:00 p.m. October 5 -9 Water Environment Federation Technical Chicago Exhibition and Conference (WEFTEC) McGill Williams Monday Budget and Finance Committee Meeting 1470 Executive Lane, Suite 200, October 14 McGill, Nejedly Concord 3:00 p.m. Tuesday Policy Development and Internal Operations 1470 Executive Lane, Suite 200, October 15 Committee Meeting Concord 3:00 p.m. Williams Ne "edl Thursday Board Meeting Board Room October 17 Board of Directors 2:00 p.m. Monday California Special Districts Association — Contra Central Contra Costa Sanitary District October 21 Costa Chapter (CCSDA) Meeting Multi- Purpose Room 10:00 a.m. McGill Tuesday Special Board Meeting (Board Priorities Contra Costa Country Club October 22 Workshop) 801 Golf Club Road, Pleasant Hill 8:00 a.m. Board of Directors Unless otherwise noted, meetings are held at the District Office, 5019 Imhoff Place, Martinez, CA 8130113 Administrative Directive No. Page 2 of 7 3. POLICY 3.1 Generally: Subject to the Public Records Act's limitations, every person has a right to inspect public records that are not exempt from disclosure at all times during the District's office hours. A member of the public may request public records by letter, email, telephone, in person, or by any other means. No personal identification is required from the person making the request. The District may not limit access to public records based upon the identity or purpose of the requesting party. 3.2 Walk -in Requests to Inspect or Copy Records: A member of the public has the right to inspect, in person at the District HOB office, all records that may reasonably be produced and that are not exempt from disclosure. Advanced notice is not required to inspect public records. There is no charge to merely inspect public records, as opposed to obtaining copies. Inspection will occur on District premises, and if appropriate, under the supervision of District staff. If the viewer wishes to make copies after viewing the records, District staff should reasonably try to accommodate the request for copies. In cases where a request to view records at the District office has been made in advance, the inspection will be approved and scheduled by the Secretary of District. 3.3 Requests for Copies: Routine requests for public records, whether made by phone, in person, or in writing, shall be filled immediately or as soon as possible, ideally by the person receiving the request. Any non - routine records requests shall be immediately forwarded to the Secretary of the District. Determination as to whether a requested record is a public record and open to inspection shall be made by the Secretary of the District or his or her appointed representative. Upon receipt of a request for records, the Secretary of the District shall make reasonably identifiable, non - exempt records, or portions thereof, promptly available to the requester, and shall, upon request, provide copies of such records upon payment of the fees set forth in the attached Schedule of Fees. The Secretary of the District shall, within 10 days from receipt of the request for a copy of records, determine whether the request, in whole or in part, seeks copies of disclosable public records in the possession of the District and shall promptly notify the person making the request of the determination and the reasons therefore. In "unusual circumstances," as defined in the Government Code, the time limit prescribed in this section may be extended for up to 14 additional days by written notice by the District to the person making the request, setting forth the reasons for the extension and the date on which a determination is expected to be dispatched. (Government Code Section 6253.) If the records are disclosable, the Secretary of the District will then notify appropriate District staff to provide documents that are maintained in departmental files. The Administrative Directive No. Page 3 of 7 Secretary of the District will arrange for review or transmittal of all requested documents. Requested copies shall be provided upon payment of the appropriate fee. Monies received shall be deposited in the Central Contra Costa Sanitary District's Running Expense Fund. 3.4 Routine Requests for Copies. Requests for Ordinances, Resolutions, District Code Sections, finalized agendas, minutes, Form 700 Statements of Economic Interest, contracts (including management employment contracts), MOUs, and permits may be routinely filled by staff without approval by the Secretary of the District. Non - routine requests to inspect records shall be approved by the Secretary of the District. 3.5 Request Refusals. Where the District determines that a requested record is exempt from disclosure, the District shall provide a written notification of denial to the requester, which shall be prepared in compliance with Government Code Sections 6253(d) and 6255. If there exists any uncertainty as to whether a record or portion thereof is exempt from disclosure pursuant to the California Public Records Act, District staff should consult with District Counsel. 3.6 Exempt Records. Records exempt from disclosure include, but are not limited to, the following: 3.6.1 Preliminary drafts of documents, memos, or reports, that are not retained by the District in the ordinary course of business. However, the public interest in withholding those records must clearly outweigh the public interest in disclosure to deny the request; 3.6.2 Records pertaining to pending litigation to which the District is a party, or to claims made pursuant to Division 3.6 (commencing with Section 810) of Title I of the Government Code, until such litigation or claim has been finally adjudicated or otherwise settled; 3.6.3 Personnel, medical, or similar files, the disclosure of which would constitute an unwarranted invasion of personal privacy; 3.6.4 Test questions, scoring keys, and other examination data used to administer a licensing examination, examination for employment, or academic examination; 3.6.5 The contents of real estate appraisals, engineering or feasibility estimates and evaluations made for or by the state or local agency relative to the acquisition of property, or to prospective public supply and construction contracts, until such time as all of the property has been acquired or all of the contract agreement Administrative Directive No. Page 4 of 7 obtained, provided, however, the law of eminent domain shall not be affected by this provision; 3.6.6 Information required from any taxpayer in connection with the collection of local taxes which is received in confidence and the disclosure of the information to other persons would result in unfair competitive disadvantage to the person supplying such information; 3.6.7 Records the disclosure of which is exempted or prohibited pursuant to provisions of federal or state law, including, but not limited to, provisions of the Evidence Code relating to privilege. For example: Trade secrets 2. Attorney - client privileged information 3. Protected personal health information under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) 3.6.8 Personal financial data filed with licensing agencies as required to establish an applicant's qualification for a license, certificate or permit. (Government Code Section 6254.) 3.7 Assisting the Requester: A person requesting to inspect or obtain copies of records is often at a disadvantage because it is difficult to reasonably describe records that the person has not yet seen. Therefore, the District is required to assist requesters in making a focused and effective request that reasonably describes identifiable records by doing the following, to the extent reasonable under the circumstances: Assist the requester to identify records and information that are responsive to the request or to the purpose of the request, if stated. 2. Describe the information technology and physical location in which the records exist. 3. Provide suggestions for overcoming any practical basis for denying access to the records or information sought. The District's duty to assist the requester is deemed satisfied if the District is unable to identify the requested information after making a reasonable effort to elicit additional clarifying information from the requester. The District does not have an obligation to assist the requester in making a more focused and effective request, however, if the requested records are Administrative Directive No. Page 5 of 7 made available, are exempt from disclosure, or the District makes an index of its records available. (Government Code Section 6253.1) 3.8 Electronic Records: If the District has disclosable public records in electronic format, the District must make the information available in an electronic format when requested. But, the District may not make the requested information available only in electronic format. When applicable, the District must: Make the information available in any electronic format in which it holds the information. 2. Provide a copy of an electronic record in the format requested if the format is one that the District has used to create copies for its own use or for other agencies. The cost of duplication charged to the requester must be limited to the direct cost of producing the copy in an electronic format. However, the requester must pay the cost of producing the copy, including the cost of computer programming, if the request would require the District to produce a copy that is otherwise produced only at regularly scheduled intervals, or the request would require data compilation, extraction, or programming to produce the record. The California Public Records Act does not require the District to reconstruct a record in an electronic format if the District no longer has it available in an electronic format. The California Public Records Act also does not require the District to release an electronic record in the electronic form in which it is held if its release would compromise the security or integrity of the original records or of any proprietary software in which it is maintained. (Government Code Section 6253.9.) 3.9 Request for Summary of Information or Copy: The Public Records Act does not require the District to present the requested information in summary form or to extract information from documents. Requests for summaries shall be directed to the Secretary of the District and General Manager who shall set the fee upon receiving advice from staff as to the estimated time of staff work required to compile such summaries. 3.10 Request for Form 700 Conflict of Interest Forms: Notwithstanding the timelines set forth above, a Statement of Economic Interest filed pursuant to the Political Reform Act of 1974 shall be open for public inspection and copying promptly upon request during regular District business hours, commencing as soon as practicable, but not later than the second business day following the day on which the Statement of Economic Interest was received by the District. (Government Code Section 81008.) Copies of the records shall be provided at a charge not to exceed $0.10 Administrative Directive No. Page 6 of 7 per page. For copies over five years old, a retrieval fee not to exceed $5.00 may be charged in addition to the 10 cents per page charge. 3.11 Consistency with California Public Records Act. This policy is not intended to limit or increase the District's responsibilities under the California Public Records Act. Administrative Directive No. Page 7 of 7 SCHEDULE OF FEES OR DEPOSITS TO BE COLLECTED WHEN COPY OF PUBLIC RECORD OR INFORMATION IS REQUESTED General Documents Unit Fee or Deposit per Unit 1. Copy of identifiable public record or Page $0.15 information 2. Extract of document and certification Page $2.00 3. Certifying existing documents Document $1.00 4. Certified Payroll Initial Handling Fee $10.00 (8 CCR 16402; Labor Code 1776) 1St Page $1.00 Each Page Thereafter $0.25 NOTE: A $10 handling fee is to be collected from the requester only if the contractor or subcontractor has not already provided the certified payroll to the District. If a $10 handling fee is collected, it will be forwarded to the contractor /subcontractor. 5. Form 700 Conflict of Interest Page $0.10 (Government Code Section 81008) 6. Form 700 Conflict of Interest Page $0.10 and (5 years or older) $5.00 (Retrieval fee) (Government Code Section 81008) SPECIAL DOCUMENTS 1. District Standard Specifications Set of Specifications $20.00 2. Project Documents for Construction Set of Specifications 1 st Set Free Each Set Thereafter $25.00 Number: BP 008 Authority: Board of Directors Effective: November 21, 2008 Revised: December 20, 2012 Reviewed: Initiating Dept. /Div.: Administration BOARD POLICY Central Contra Costa Sanitary District TRAVEL AND EXPENSE REIMBURSEMENT PURPOSE To establish a policy for appropriate reimbursement of expenses and costs incurred by elected officials, appointed officials, District Counsel and staff for travel activities that are necessary, legitimate, permissible, and actually incurred when traveling on authorized District business, provided they are itemized, fully explained and approved on the Travel Expense Reimbursement Report. Pnl ICY All District travel must be approved in advance, excepting urgent or emergency travel benefiting the District. Board member travel is approved by budget approval and /or public report, by the General Manager, with Board majority concurrence. The General Manager's report will allow for Board consideration and approval, or denial, as well as meet AB 1234 intent for public disclosure. General Manager, District Counsel and Secretary to the District travel is approved by Board majority through budget approval, report, or position paper. Employee travel is approved through the budget by the appropriate Division Managers. and Division Managers travel will be approved by the General Manager. 2. Travel approval is to be consistent with the budget guidelines for travel. 3. Board Members and the General Manager are authorized to travel without prior approval for compelling reasons, provided reasonable effort has been made to obtain prior approval. Review of such travel will occur consistent with the approval process identified in item 7 below. 4. While traveling on District business, it is the responsibility of the elected officials, appointed officials and employees to use sound judgment to ensure reasonable expenditure of District funds. If there is no receipt for any given expenditure, the Supervisor's signature on the Travel Expense Reimbursement Report will act as authorization of the charge. District Board members whose expenses do not fall within this policy may be submitted to the Board of Directors for approval, in a public meeting, before the expense is incurred. 5. Board Members' attendance at conferences will be approved by the Board in advance for the fiscal year on a Board agenda. BP 008 Page 2 of 5 6. Travelers are responsible for the timely preparation and submission of their Travel Expense Reimbursement Reports (instructions for completion are on the reverse side of the form) to the Accounting Office for payment. Reports must be submitted within 30 days of the event or trip completion. Travelers should retain copies of the Report and receipts for their personal records. 7. The President of the Board of Directors shall approve travel reimbursement documents for all Board Members, District Counsel, the General Manager and the Secretary of the District. The Board President Pro Tem, or in his /her absence another designated Board member, shall have authority to approve travel reimbursement for President of the Board. The General Manager shall approve all travel reimbursement documents for his /her direct reports, and in certain instances, other staff. Division Managers shall approve all travel reimbursement documents of those in their charge. PROCEDURE 1. Making Travel Arrangements: All District travel arrangements are to be booked through department related support staff. Staff will follow the approved District Travel Policy and parameters when making travel arrangements for District employees. Staff will make sure that requesting staff has received prior budget approval and /or Division Manager approval before making arrangements (via email, memo, etc.) 2. Transportation: a. Commercial Airline Travel: Elected officials, appointed officials and District employees will travel at the lowest reasonable coach class airfare within the following guidelines: (1) In order to obtain low airfares, a two -hour window policy will be used in searching for a low fare. This window policy involves searching for fares one hour prior to and after the requested departure /arrival time. The lower fare quoted within this two - hour window must be taken unless time constraints make it impossible. (2) Direct flights (one -stop) and connections (change of planes), rather than non - stops, may represent substantial savings to the District. Non -stop flights, if more expensive, cannot be taken if lower direct/ connecting fares are available and does not place an unreasonable burden on the traveler. (3) Early departures and late returns are encouraged to avoid lodging for an additional night. Travel arrangements should allow for full attendance at the subject event. (4) Air travel arrangements should be reserved as far in advance of travel date as possible. Advance planning, rather than last- minute reservations, allow for the opportunity to obtain lower fares. Travel arrangements should be booked a minimum of seven days prior to departure. (5) Reimbursable expenses shall be limited to the actual dates of travel, which shall be as near the event as practical, allowing for timely arrival and departure and the carrier's schedule. If the extension of travel time would achieve lower airfare and BP 008 Page 3 of 5 would result in a net cost savings to the District, the District will pay for actual costs incurred for hotel and meals only, subject to the other limitations of this policy, provided they do not exceed the costs which would have been incurred without an extension, and the extension is approved in advance. Any additional time (exceeding the above) taken prior to or after the event will be at the employee's time and expense. The District will not reimburse for excess baggage fees if not related to District business. (6) Use of penalty or non - refundable airfares should be considered, depending on the nature of travel, and the certainty that the trip will take place as planned. These lower- cost fares shall be selected at the traveler's discretion. If a change results in penalties, the Department Directors shall have the authority to include these charges as reimbursable, if appropriate. (7) If there is a significant difference between the cost of the flight used and a less expensive flight that was available, or if the traveler uses first -class or business class instead of an available coach -class airfare without approval from the appropriate supervisor, the traveler will be required to pay the difference in expense. (8) Use of a specific airline for the purpose of obtaining Frequent Flyer miles will not be authorized, unless the airfare is among the lowest available. b. Car Rentals: The use of a rental car must be authorized in advance. When a car rental is authorized, the elected official, appointed official or employee shall be limited to a compact or mid -size vehicle. A larger vehicle may be rented if for the purpose of transporting a group of District elected officials, appointed officials or employees. A rental car may be authorized only for a business necessity or if it is the most economical means of transportation available. The employee should be prepared to show a cost savings to the District by the use of a rental car as compared to other modes of transportation. When traveling in groups, sharing of cars is encouraged to minimize costs. Collision and liability insurance offered by the rental company should be accepted. Employees should refuel cars before returning them to the rental agency to avoid the large refueling mark -up, when economical. Officials and employees are required to notify the District's Safety and Risk Administrator and the employee's supervisor within 24 hours of any event, incident or accident related to the rental vehicle. C. Taxi and Other Local Transportation: The use of a taxi is authorized when more economical services are not available, or in cases when valid business reasons, such as timing limitations, warrant use of such transportation. If available and practical, public or courtesy limousine transportation to and from airports should be used. Use of private limousines or chauffeured cars hired solely to transport District Board Members and /or staff is prohibited. d. Travel in District Vehicles: District vehicles are available for local seminars. District vehicles shall not be used for personal use when attending seminars. BP 008 Page 4 of 5 e. Travel in Personal Vehicles: When use of a privately -owned vehicle is authorized in lieu of a common carrier, reimbursement will be based on the prevailing mileage rate, but will not exceed air coach rate to and from the destination plus local transportation costs. When travel is to a local seminar, mileage reimbursement will be calculated based on the shortest distance to the seminar from home or from work. Reasonable costs for parking and tolls will be reimbursed. 3. Lodging/Telephone: a. Lodging: Employees should limit their stay to a minimum number of nights. Reimbursement for the daily cost of lodging includes only the single occupancy room rate and applicable taxes unless shared by more than one District employee. When making reservations for lodging, attempts should be made to obtain a discounted or governmental agency rate. District travelers are expected to use good quality, but reasonably priced hotels or motels wherever practical. (The conference hotel, or its equivalent, at the conference rate, is acceptable lodging for District business.) When attending conferences, a block of hotel rooms may be offered at a reduced rate. Nevertheless, travelers should check to see if a lower rate, at the same facility, is available. Hotels will be paid for by personal credit card or by acquiring a cash advance for the hotel before the conference. (Make sure when checking out of hotels that they do not charge for any nights that the District has paid for in advance such as first nights deposit to hold room). If the traveler requires a cash advance and possesses a procurement card, they may be allowed to pay for the hotel costs on that card once they check out at the end of the conference if prior approval by their Division Manager is givenin order to avoid the need for a cash advance. b. Telecommunication: On authorized travel, necessary business - related telephone calls, faxes and modem connections incurred may be reimbursed. The cost of personal telephone calls made while attending a seminar will be borne by the employee. However, employees are allowed one personal call of reasonable length and cost per day at District expense. The District's Controller shall make the final determination of reasonable duration and cost on a case -by -case basis. 4. Meals: The cost of each meal is to be reported separately on a daily basis and covers the District traveler only. Receipts for all claimed meals should be included with the travel expense report. The cost of meals includes taxes and tips or service charges as applicable. Purchases of alcoholic beverages shall not be reimbursed. The maximum reimbursement for meals is $64 per day, given proper documentation by providing receipts. In cases where the individual signs up for meals that have a separate cost in addition to the conference registration, that meal would be excluded from the daily allowance. If a District traveler is accompanied by a spouse or guest and the District or a District staff person covers the cost, the District traveler will be billed for the cost of his /her spouse /guest's meal or other related costs. If the guest is a business associate, the cost may be reimbursable. See criteria and requirements in Paragraph 6, Special Expenses Paid by Employee, below. BP 008 Page 5 of 5 5. Travel Advances: A request for a travel advance must be made at least two weeks prior to travel by submitting a completed Payment Authorization Request form to Accounting. There will be no travel advances for the cost of airline travel due to the District's payment for the ticket in advance. Advances must be utilized immediately and accounted for within two weeks after completion of a trip. No additional advances will be granted before settlement of an outstanding advance. In the event an advance remains open beyond 30 days, the District may elect to deduct the amount advanced from the employee's next regular paycheck. 6. Special Expenses Paid by Employee such as Meals for Business Associates: Report only expenses paid by cash, personal check, or credit card. Meal expenses, to be reimbursable, must be an expenditure necessary for the transaction of District business. The Internal Revenue Code requires that specific details showing names of guests and employees, cost, date and place, business purpose, and the business relationship of individuals be supplied. Attach receipts whenever possible. Receipts for expenditures of $25 or more are required. 7. Travel Expense Reimbursement Reports: Travel Expense Reimbursement Reports must be legible and in all cases be signed in ink by both the employee and the Division Manager. Each expense shall be clearly and accurately identified and shown on the Report on the day the expense was actually incurred. Report all expenses paid by cash, personal check, credit card, and those paid directly by the District. Auditing and control procedures of the District require that receipts substantiating travel expenses be provided by the traveler whenever possible. Original receipts, including hotel statements, airline ticket stubs, car rental invoices, credit card receipts, paid invoices, or any receipt, which shows the date, location, nature and amount of the expenditure, shall be attached to the Report. When a receipt is not available and the expense is more than $25.00, the traveler shall provide a statement detailing the expenditures and explaining the reason for the lack of a valid receipt. However, in accordance with Government Code 53232.3 and Assembly Bill 1234, elected and appointed officials are required to submit receipts documenting each expense claimed. All documents related to reimbursable agency expenditures are public records, subject to disclosure under California Public Records Act. In addition, AB 1234 requires Board members to provide a report, written or verbal, to the Board in open session on the event, conference, seminar or training attended, to be agendized within 30 days of the event. RESOLUTION NO. 2008-109 A RESOLUTION SETTING FORTH PROCEDURES FOR APPOINTMENT TO AND ESTABLISHMENT OF BOARD COMMITTEES AND MEETING COMPENSATION REQUIREMENTS FOR BOARD MEMBERS WHEREAS, Section 6489 of the California Health and Safety Code provides that compensation be paid to Board Members for each day's attendance at meetings of the Board or for each day's service rendered as a Director by request of the Board; and WHEREAS, in accordance with the Health and Safety Code and the California Water Code Sections 20200 et seq., Ordinance 241 was adopted on February 15, 2007, setting the Board compensation at $221 per approved meeting, not to exceed more than one meeting per day and six meetings per calendar month, which amount may periodically be adjusted by ordinance; and WHEREAS, in accordance with Section 2.04.020 of the District Code, when the Board considers it necessary for the efficient transaction of business, it may approve the creation of a committee for the purpose of reviewing, investigating, and recommending with reference to a particular matter; and the President shall appoint the members of said committee and shall have the authority to appoint an ad hoc committee or representative to similarly act pending a Board Meeting; and WHEREAS, the President may name an alternate to serve in the absence of an appointed Committee Member or District representative; and WHEREAS, the Board has deemed it necessary for the efficient operation of the District to appoint Board Members to represent the District on various committees, joint powers authorities, to act as representatives of the District to various organizations, and as liaisons to cities and the County; and WHEREAS, in accordance with AB 1234 and to encourage participation and attendance at conferences and organizations which serve the interests of and provide benefit to the District, the Board has determined that Board Members may be compensated for each day's attendance at certain events and meetings as listed below. NOW, THEREFORE, BE IT RESOLVED, that: 1. The President of the Board of Directors shall appoint Board Members to the following committees and that Board Members may receive the compensation fixed by District Ordinance for attendance at such committee meetings: Budget and Finance Committee Capital Projects Committee Human Resources Committee Resolution 2008 -109 Page 2 of 3 Outreach Committee Recycled Water Committee Household Hazardous Waste Committee Real Estate Committee Ad Hoc Committees 2. The President of the Board of Directors shall appoint or confirm Board Members to represent the District at or before organizations as follows, and Board Members may receive compensation for their attendance at such meetings or events when attending as a District representative. Board Liaison to Cities and County California Special Districts Association — Contra Costa Chapter Friends of the San Francisco Estuary Sanitation and Water Agencies of Contra Costa County Local Agency Formation Commission (whether as Board Liaison or as otherwise designated by the President) 3. That, in addition to the above, members of the Board of Directors shall be compensated at the current compensation rate for each day's attendance at the following meetings and conferences: Meetings of the Califomia Association of Sanitation Agencies (CASA) Executive Board, when serving as a member of the Executive Board. 4. That any Board Member may receive the stipend if approved by the Board in advance for attendance at a meeting, conference or event not listed above. 5. That the Board of Directors determines that public resources should be used to reimburse expenses incurred when attending meetings, conferences or events which are related to District business and are of interest and value to the District. These meetings, conferences or events include, but are not limited to, Contra Costa Mayors' Conference meetings, Contra Costa Council meetings, local public official informational meetings or other meetings where the topic is of interest to the District or promotes inter - agency cooperation and partnerships. Reimbursements will also be provided for events under paragraphs 2, 3 and 4 above. Reimbursements will be paid in accordance with existing District policy. 6. That Board Members will report at Board Meetings, in advance whenever possible, which meetings they will be attending or have attended for which they receive the stipend, and which meetings or conferences they will be attending or have attended for which the District pays their expenses. Resolution 2008 -109 Page 3 of 3 7. That meeting attendance slips for Board Members for the meetings listed above and for regular Board Meetings shall be approved by the Board President or, in his or her absence, the President Pro Tem. Meeting attendance slips for the Board President shall be approved by the President Pro Tem, or, in his or her absence, a Board Member designee. 8. Travel days to and from meetings or conferences are not compensable under this policy. PASSED AND ADOPTED this 2nd day of October, 2008, by the following vote: AYES: Members: xockett, Menesini, Nejedly, Lucey NOES: Members: None ABSTAIN: Members: McGill Gerald R. Lucey President of the District Board, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: C--=2 Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Kenton L. A m District Counsel Review Date: 8/14/2013 CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE AND BOARD MEMBER REIMBURSEMENTS FISCAL YEAR 2012 -13 Employee /Board Member Transaction Amount Description Additional Description /Reference Check Date ALEXANDER, JAMES $ 132.00 REIMS MEMBERSHIP FEE CWEA MEMBERSHIP 9/6/2012 ALEXANDER, JAMES 135.00 REIMS CERT FEE GD I CWEA GD i EXAM 9/6/2012 AMARAL, PAUL 150.00 REIMS CERT GO 11 AMARAL,P GDII 10/18/2012 ANDERSON, DONNA 222.55 REIMS MEETING EXP 10/18 REIMB 10/2512012 ANDERSON, DONNA 450.00 REIMS REG FEE SEMINAR REIMB 11/8/2012 ANDERSON, DONNA 476.62 SEMINR TRAVL EXP -NEW LAWS 11/28 -30 SEMINR 12113/2012 ANDERSON, DONNA 119.52 REIMB MEETING EXP 12/06 REIMS 12/20/2012 ATOIGUE, JASON 98.79 REIMS MILEAGE OCTOBER 2012 11/8/2012 ATOIGUE, JASON 139.40 REIMB WORKSHP TRAVEL EXP 2/26 -27 RFMACCO 3/21/2013 BARRY, TED 1,855.98 REIMS TRAINING TRAVEL EXP 9/10 -19 GLOBAL 9/27/2012 BENAVIDEZ, ALEX 231.00 MED /EXAM REIMB 1118/2012 BENAVIDEZ, ALEX 385.61 REIMB TUITION CCC AUG2012 12/20/2012 BENAVIDEZ, ALEX 170.00 REIMB CERT FEE GD 111 CWEA CERT GD 3 7/1112013 BENNETT, RUTH 97.45 REIMB TRAINING TRAVEL EXP 315 SAFETYCNTR 3/21/2013 BENNETT, RUTH 369.55 REIMS TRAINING TRAVEL EXP 3/27 -3129 OSHA 4/11/2013 BENNETT, RUTH 112.47 REIMS CONF TRAVEL EXP 4/17 -4/20 CWEA 512/2013 BERGER, DON 1,140.69 WATER REUSE CONF TRVL EXP 09108 /12WATEREU 11/15/2012 BOTELU, DONALD 94.74 REIMB WORKSHOP TRAVEL EXP WRKSHOP 7119 -20 8/9/2012 BRIGHTBILL, THOMAS 132,00 REIMS CWEA MEMBERSHIP BRIGHTBILL CWEA 414/2013 BUTLER, JEFF 80.00 REIMS CERT FEE GO I SWRCB EXAM GDI 12/20/2012 CAMPOS, JACKELINE 90.13 REIMS SEMINAR TRAVEL EXP 09114 CWEA 10/4/2012 CARPENTER, CHRIS 211.45 REIMS TRAINING TRAVEL EXP 2/20 -2/21 P10T 2128/2013 CAUSEY, PAUL 1,149.01 REIMS CONF TRAVEL EXP 2124 -2/27 CASA 3128/2013 CHARLTON, ELIZABETH 2,012.13 REIMS CONF TRAVEL EXP ESRI 07/20 -24 8/912012 CHARLTON, ELIZABETH 102.43 REIMS CONF TRAVEL EXP 10/05 CLSA 10/18/2012 CHAUDHARY, 1MRAN 121.63 REIMB MILEAGE JUNE 2013 7/11/2013 CHAUDHARY, IMRAN 963.56 REIMB CONF TRAVEL EXP 6/22 -6128 SUGA 7/2512013 CHAVIS, NICKOLAS 170.00 REIMB CERT GD III CHAVIS GO 111 10/18/2012 CHENG, RITA 1,056.98 REIMS CONF TRAVEL EXP 4/16 -4/19 CWEA 5/9/2013 CROUCH, PAUL K. 440.69 REIMB CONF TRAVEL EXP 4/17 -4119 CWEA 5/2/2013 CROWE, JASON 263.43 REIMB CONF TRAVEL EXP 4/17 -4119 CWEA 5/2/2013 CUNNINGHAM, MICHAEL 363.66 REIMS CONF TRAVEL EXP 4/19 CWEA 5/2/2013 DAVI, MARALEE 124.49 SHOES /DAVI, M. REIMB 12/20/2012 DELUCA, NICHOLAS 140.00 REIMB CERT FEE GD I CWEA CERT GD 1 5/1612013 DEUTSCH, SHARI 107.04 REIMS TRAINING EXP 07/30 REIMS DEUTSCH 8/2/2012 DEUTSCH, SHARI 112.67 REIMB MILEAGE 10/1/2012 11/15/2012 DEUTSCH, SHARI 1,265.77 REIMS CONF TRAVEL EXP 2/3 -6 PARMA 2/21/2013 DEUTSCH, SHARI 280.66 REIMB MILEAGE 3/1/2013 3/14/2013 DEUTSCH, SHARI 227.92 REIMS MILEAGE 3/1/2013 4/18/2013 DEUTSCH, SHARI 215.29 REIMS MILEAGE 4/1/2013 5/22/2013 DIMAGGIO, STEVE 140.00 REIMB CERT FEE GD I CWEA CERT GD 1 6/6/2013 DOBEY, BRUCE 931.45 REIMS CONF TRAVEL EXP 4/16 -04/19 CWEA 5/9/2013 ENGELAGE, SAMANTHA 676.59 REIMB BAY DELTA CONF EXP 10 /16- 18BAYDELT 11/1/2012 ENGELAGE, SAMANTHA 1,35812 REIMB CONF TRAVEL EXP 9130- 10 /3WEFTEC 11/8/2012 ENGELAGE, SAMANTHA 1,037.04 PROJ/TREATMENT PLANT PLAN 1114 -8WWP VISIT 11/29/2012 ENGELAGE, SAMANTHA 1,214.19 REIMS CONF TRAVEL EXP 4/154/19 CWEA 1 512/2013 ESPARZA, MARY LOU 116.00 REIMS CONF TRAVEL EXP 10116 -18 BBDSC 1216/2012 ESPARZA, MARY LOU 493.18 REIMB WORKSHOP TRAVEL EXP 04/24 -26 IEP 5/16/2013 Report: N:+ACCOUNTINMGMTEMP11Cognos ReportslEmployee Reimbursements. imr Page 1 Review Date: 8/14/2013 CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE AND BOARD MEMBER REIMBURSEMENTS FISCAL YEAR 2012 -13 Employee /Board Member Transaction Amount Description Additional Description /Reference Check Date ESPARZA, MARY LOU 95.97 REIMB CONF TRAVEL EXP 518 -9 SETAC 6/13/2013 FARRELL, ANN E. 842.90 REIMB CONF TRAVEL EXP 8/8 -8111 CASA 8130/2012 FARRELL, ANN E. 1,252.62 REIMB CONF TRAVEL EXP 9 /30- 1013WEFTEC 10/18/2012 FARRELL, ANN E. 107.25 REIMB MILEAGE 11/1/2012 12/6/2012 FARRELL, ANN E. 49.19 REIMS MILEAGE 1/1/2013 1/17/2013 FREEMAN, DONALD 123.49 REIMB SEMINAR TRAVEL EXP 8/1 -812 ATS 8/16/2012 GANTT, TIFTON 229.81 REIMB CONF TRAVEL EXP 2124 -2/27 COLE 3/28/2013 GEMMELL, DANEA 114.77 REIMB TRAINING TRAVEL EXP 4/22 -4/25 CGA 5/22/2013 GONZALEZ, LEO 130.00 REIMB CERT OPER GD 11 GONZALEZ GD 11 8/2/2012 GONZALEZ, LEO 317.58 REIMB CONF TRAVEL EXP 4/15 -19 CWEA 5/2/2013 GOWARD, CHRISTOPHER 306.55 REIMB TRAINING TRAVEL EXP 09/4 -7 WWTT 101412012 COWARD, CHRISTOPHER 99.64 REIMB WORKSHOP TRAVEL EXP 5/22 CWEA 6113/2013 GRANT, WILLIAM 129.75 PROJ /2012 CIPP LINING GRANT/TWIC 9120/2012 GRUBKA, STEVEN 149.00 REIMB SEMINAR TRAVEL EXP 7/23 -7123 FPS 8/9/2012 HAISLEY, CHRISTOPHER 188.41 REIMB TRAINING TRAVEL EXP TRAINING 07/13 8/212012 HARRIS, DEBORAH 64.52 REIMB /SAFETY MEETING EXP REIMB 7/26/2012 HARRIS, DEBORAH 146.51 REIMB /SAFETY MEETING EXP REIMB 7/26/2012 HARRIS, DEBORAH 5.75 REIMB /SAFETY MEETING EXP REIMB 7/26/2012 HARRIS, DEBORAH 342.83 REIMBISAFETY MEETING EXP REIMB 7/2612012 HARRIS, DEBORAH 137.20 REIMB /SAFETY MEETING EXP REIMB 7/26/2012 HENRY, COLLEEN 481.86 REIMB CONF TRAVEL EXP 2/24 -2127 CWEA 3/1412013 HESS, ROBERT 913.86 REIMB CONF TRAVEL EXP 4/164/19 CWEA 5/16/2013 HOCKETT, BARBARA D. 882.92 REIMS CONF TRAVEL EXP 8/8 -8111 CASA 8/30/2012 HOCKETT, BARBARA 0. 868.03 REIMB CONF TRAVEL EXP 9130- 10 /3WEFTEC 1011812012 HOWARD, SHENAE 265.22 COFFEE EQUIP & SUPPLIES REIMB 112412013 HOWARD, SHENAE 113.80 REIMB TRAVEL CONF EXP 1/29 -30 NSG 2/7 /2013 HOWARD, SHENAE 25.43 REIMB MILEAGE 4/1/2013 4/11/2013 1NGRAM,WINSTON 985.93 REIMB NAHMMA CONF EXP 9/16- 21NAHMMA 11/112012 JOCOVIC, SUSAN 104.00 REIMB /SAFETY TRAINING EXP REIMB 9/20/2012 JOCOVIC, SUSAN 120.00 REIMB REG FEE ANNUAL MEET REIMB 3/14/2013 JOCOVIC, SUSAN 571.65 REIMB CONF TRAVEL EXP 4/15 -19 CWEA 5/2/2013 KIN, CHI -DA 250.00 REIMB CERT EXAM OPR GD IV OP GD IV EXAM 6/27/2013 KING, JAMIE 96.19 REIMB CONF TRAVEL EXP 1111 -11/1 LAIF 11/8/2012 KING, STEPHANIE 438.49 REIMB CONF TRAVEL EXP 8/17 -8123 NIGP 9120/2012 KING, STEPHANIE 203.83 REIMB TRAINING TRAVEL EXP 3/25 -3127 RESL 4/18/2013 KIRBY, KEVIN 155.00 REIMB CERT GD 11 CWEA GD It EXAM 1012512012 KLUBBEN, MIKE 194.84 REIMB CONF TRAVEL EXP 6/10 -6/12 WEF 6/27/2013 KNIGHT, CAROLYN 1,447.37 REIMB CONF TRAVEL EXP 7122 -7/27 ESRI 8/9/2012 LABELLA, MELODY 1,11719 WEFTEC CONF TRAVEL EXP 09/25 -10/6 WEF 11129/2012 LABELLA, MELODY 449.22 REIMB CONF TRAVEL EXP 2/24 -27 CWEA 3/7/2013 LABELLA, MELODY 399.03 REIMB WORKSHOP TRAVEL EXP 04/24 -26 IEP 5/16/2013 LABELLA, MELODY 57.31 REIMB TRAVEL EXP 12105 REIMB 5/16/2013 LABELLA, MELODY 74.00 REIMB TRAVEL EXP 01/31 REIMB 5/16/2013 LABELLA, MELODY 45.73 REIMB TRAVEL EXP 02/06 REIMB 5/16/2013 LABELLA, MELODY 48.73 REIMB TRAVEL EXP 04/03 REIMB 5/1612013 LABELLA, MELODY 14.00 REIMB TRAVEL EXP 03/08 REIMB 5/16/2013 LABELLA, MELODY 47.53 REIMB TRAVEL EXP 04130 REIMB 5/16/2013 LABELLA, MELODY 295.95 REIMB WORKSHOP TRAVEL EXP 5/16 -17 NACWA 5130/2013 Report: NIACCQUNTINMGMTEMP11Cognos ReportslEmployee Reimbursements.imr Page 2 Review Date: 8/14/2013 CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE AND BOARD MEMBER REIMBURSEMENTS FISCAL YEAR 2012 -13 Employee /Board Member Transaction Amount Description Additional Description /Reference Check Date LI, ROY 130.98 REIMS MILEAGE 11/1/2012 11/29/2012 MARCHETTI, DANTE 185.00 REIMS CERT FEE GD 4 CWEA GD 4 EXAM 9/27/2012 MARCHETTI, DANTE 293.94 REIMS SEMINAR TRAVEL EXP 2/27 -3/1 CASSE 3/14/2013 MARCHETrI, DANTE 320.00 REIMS CONF TRAVEL EXP 4/15 -19 CWEA 5/2/2013 MARCHETfI, DANTE 256.23 REIMS CONF TRAVEL EXP 619 -12/13 WEF 6/20/2013 MAROON, ROBERT 94.72 REIMS SEMINAR TRAVEL EXP 12/3 SKILLPATH 1/3/2013 MAROON, ROBERT 95.72 SUPERVISOR SEMINAR EXP 01/22 SEMINAR 2/7/2013 MARTINEZ, BERNARD 165.00 REIMS CERT FEE GD III CWEA GDIII EXAM 10/4/2012 MCGILL, MICHAEL R. 963.53 REIMS CONF TRAVEL EXP 8/8 -8/11 CASA 8/30/2012 MCGILL, MICHAEL R. 527.31 REIMS CONF TRAVEL EXP 9/24 -9/26 CSDA 10111/2012 MCGILL, MICHAEL R. 58160 REIMS CONF TRAVEL EXP 12/3 -6 CALPELRA 1212012012 MCGILL, MICHAEL R. 1,050.46 CASA CONF TRAVEL EXP 01115 -18 CASA 2114/2013 MCGILL, MICHAEL R. 505.27 REIMS CONF TRAVEL EXP 4124 -4/26 CASA 5/9/2013 MESTETSKY, ALEXANDR 393.13 REIMS CONF TRAVEL EXP 3/04 -3/06 NASTT 3/21/2013 MILLER, TINA 100.66 REIMS CONF TRAVEL EXP ARMA 07123 8/2/2012 MOLINA, NANCY A. 1,097.66 REIMS CONF TRAVEL EXP 9 /30- 10 /4WEFTEC 10/18/2012 MOLINA, NANCY A. 146.70 REIMS CONF TRAVEL EXP 3/4 -6 NASTT 3/14/2013 MORTON, MARGARITA 2,000.00 REIMS TUITION WGU 09101 -02/28 3/14/2013 MULLENIX, TWILA 153.71 REIMS TRAINING TRAVEL EXP 216 -8 WRI PAC 2/14/2013 NICOLAUS, JON. 115.26 REIMS TRAINING TRAVEL EXP 8/13 -8/14 TRNG 9/6/2012 NICOLAUS, JON 155.00 REIMS CERT GD II NICOLAUS GD It 1 0/1 81201 2 NICOLAUS, JON 170.00 REIMS CERT EXAM FEE NICOLAUS GDill 3/28/2013 NWANSI, ORNAN 140.00 REIMS CERT FEE GO I CWEA CERT GO 1 5/1612013 OHLMAN, KIT 142.74 REIMS CONF TRAVEL EXP 2/26 -2/27 CWEA 3/21/2013 OLSEN, LIANA 241.43 iREIMB CONF TRAVEL EXP 3/4 -6 NASTT 3/14/2013 OLYMPIA, JAMES 989.11 REIMS CONE TRAVEL EXP 4/16 -19 CWEA 5/2/2013 O'MALLEY, TEJI 1,485.04 REIMS CONF TRAVEL EXP 12/2 -7 CALPELRA 12/20/2012 ORTEGA, JOHN 98.95 REIMS TRAINING TRAVEL EXP 09112 CWEA TRNG 9/2712012 ORTEGA, JOHN 389.63 REIMS CWEA CONF EXP 2125 -27 CWEA 3/28/2013 ORTEGA, JOHN 1,458.53 REIMS CONF TRAVEL EXP 4115 -19 CWEA 5/2/2013 PENNY, MICHAEL 815.26 REIMS CONF TRAVEL EXP 9130- 10 /4WEFTEC 11/8/2012 PERALES, ANDREW 182.58 REIMS TRAINING TRAVEL EXP 2125 -2128 DKF 3121/2013 PETAGARA, DULCE 328.59 REIMS TRAINING TRAVEL EXP 619 - 6113/13 EPA 6/20/2013 PILECKI, TAD 131.08 REIMS TRAINING TRAVEL EXP 01/15 CSDA 1/31/2013 POTTER, TIMOTHY 175.41 REIMS MILEAGE 7/1/2012 8/23/2012 POTTER, TIMOTHY 492.53 REIMS SEMINAR TRAVEL EXP 09126- 09127FDAR 10/11/2012 POTTER, TIMOTHY 174.30 REIMS MILEAGE AUG -SEPT 2012 10/11/2012 POTTER, TIMOTHY 283.31 REIMS MILEAGE OCT -DEC 2012 1/31/2013 POTTER, TIMOTHY 472.78 REIMS CWEA CONF EXP 2/24 -27 CWEA 3/28/2013 POTTER, TIMOTHY 249.96 REIMS MILEAGE JAN -MAR 2013 4/11/2013 POTTER, TIMOTHY 1,248.73 REIMS CONF TRAVEL EXP 4117 -19 CWEA 5/16/2013 POTTER, TIMOTHY 934.68 REIMS CONF TRAVEL EXP 5/15 -17 NACWA 6/6/2013 POTTER, TIMOTHY 120.53 REIMS MILEAGE APR -JUN 2013 6/20/2013 RHOADS, DONALD R. 531.52 REIMS INSPCTN TRAVEL EXP 9/25 -10119 INSP 12/20/2012 RHOADS, DONALD R. 453.16 REIMS CONF TRAVEL EXP 10/9 -10/11 AWWA 1/312013 RHOADS, DONALD R. 185.32 REIMS CONF TRAVEL EXP 4/164/19 CWEA 519/2013 RILEY, TODD 154.00 REIMS TUITION SCC FALL 2012 7/25/2013 RIVERS, JUDY 291.42 REIMS SVC AWARDS EXP I SVC AWARDS 1111120121 Report: N;WCCGUNTINGIGMTEMPMognos ReportMEmployee Reimbursements.imr Page 3 Review Date: 8/14/2013 CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE AND BOARD MEMBER REIMBURSEMENTS FISCAL YEAR 2012 -13 Employee /Board Member Transaction Amount Description Additional Description /Reference Check Date ROBERTSON, LISA 152.43 REIMB SEMINAR TRAVEL EXP 10/11 -12 IRWA 10/18/2012 ROBERTSON, LISA 89.00 REIMS TUITION DEC 2012 LRES 1/10/2013 ROBERTSON, LISA 148.12 REIMS TUITION DEC 2012 ALLIED 1/10/2013 ROBERTSON, LISA 397.39 REIMS SEMINAR TRAVEL EXP 4/4 -4/5 IRWA 4/18/2013 RODRIGUEZ, ERNESTO 580.34 REIMB CONF TRAVEL EXP 2124 -2/27 CWEA 4/11/2013 ROLLEY, DAVID 96.38 REIMS MILEAGE 2/1 /2013 3/7/2013 ROSALES, SALVADOR 1,646.00 REIMB TUITION EXP CSU JULY13 10/11/2012 ROSALES, SALVADOR 91.14 REIMS TRAINING TRAVEL EXP 09/26 CWEA 10!1812412 ROSALES, SALVADOR 140.00 REIMS MEMBERSHP RENEWAL REIMS 12/20/2012 ROSALES, SALVADOR 1,251.73 REIMB CONF TRAVEL EXP ISJDC 4/15 -19 CWEA 5/16/2013 SARRAS,SEAN 377.00 REIMB TUITION SJDC 12/14/12 12/27/2012 SARRAS,SEAN 536.75 REIMBURSE TUITION MAY 2013 5/30/2013 SAUTER, STEVE 132.24 REIMB CONF TRAVEL EXP 2/24 -27 COLE 3/2812013 SCAHILL, MICHAEL 1,330.32 REIMS CONF TRAVEL EXP 8/7 -11 CASA 8130/2012 SCAHILL, MICHAEL 829.91 REIMS CONF TRAVEL EXP 4/23 -4/26 CASA 5/2/2013 SEARCY, JONATHAN 168.50 REIMS TUITION EXP DVC MAR 13 7/3/2013 SEITZ, PAUL 160.57 REIMS MILEAGE FEB & MAR 2013 4/11/2013 SEITZ, PAUL 319.22 REIMB CONF TRAVEL EXP 4/16 -19 CWEA 5/2/2013 SEITZ, PAUL 109.72 REIMS MILEAGE 4/1/2013 5/9/2013 SETTY, ANITA 1,150.32 REIMB CONF TRAVEL EXP 4/15 -4/19 CWEA 5122/2013 SHIMA, CUNT 370.15 REIMS CONF TRAVEL EXP 4/16 -4/19 CWEA 5/9/2013 SKINNER, JEFF 620.00 REIMB TUITION EXP HUMPHREY 09/12 10/2512012 SKINNER, JEFF 327.88 REIMB CONF TRAVEL EXP 2/25 -2/27 CWEA 3/21/2013 SKINNER, JEFF 620.00 REIMB TUITION EXP HUMPHREY 12112 3/28/2013 SKINNER, JEFF 760.00 REIMS TUITION EXP HUMPHREY 0313 5/1612013 SMITHEY, TODD 917.42 REIMB CONF TRAVEL EXP 6/23 -6/27 SUGA 7/11/2013 SOLIVAR, GEORGE 210.14 REIMS TRAINING TRAVEL EXP 10/7 -12 GB 10/1812012 SOLIVAR, GEORGE 205.16 REIMS TRAINING TRAVEL EXP 2/25 -28 GLOBAL 3/14/2013 ST. JOHN, GREGORY 252.24 CLSA CONF TRAVEL EXP 3/112013 6/6/2013 SULLIVAN, SEAN 150.00 REIMB CERT GD II SULLIVAN GD 11 8/9/2012 SWAN, SCOTT 135.00 REIMS CERT CWEA GD 1 SWAN /CWEA GD 1 12/13/2012 SWANSON, CURTIS 211.24 REIMS MILEAGE 7/1/2012 8/9/2012 SWANSON, CURTIS 149.18 REIMBURSE MILEAGE 8/1/2012 9/13/2012 SWANSON, CURTIS 176.38 REIMS MILEAGE 9/112012 10/4/2012 SWANSON, CURTIS 1,786.95 REIMB WEFTEC CONF EXP 9 /28- 1018WEFTEC 11/112012 SWANSON, CURTIS 152.52 REIMS MILEAGE 10/1/2012 11/15/2012 SWANSON, CURTIS 175.21 REIMB MILEAGE 11/1!2012 12113/2012 SWANSON, CURTIS 223.05 REIMB MILEAGE 12/1/2012 1/10/2013 SWANSON, CURTIS 1,395.03 REIMB CONF TRAVEL EXP 2123 -27 CASA 3/2112013 SWANSON, CURTIS 174.31 REIMB MEETING EXP 04/05 REIMS 4111/2013 SWANSON, CURTIS 592.50 REIMS WHIP LUNCHEON /AWRDS WELLNESS PRGM 5/2/2013 SWANSON, CURTIS 775.12 REIMB CONF TRAVEL EXP 4123 -26 CASA 5/16/2013 SWANSON, CURTIS 103.11 REIMB MILEAGE MAY 2013 6/13/2013 SZMIDT, LESZEK 150.00 REIMB CERT FEE GD It CWEA CERT GD 11 11/21/2012 TALARICO, JEREMY 480.99 REIMB CONF TRAVEL EXP 9/12 -9/14 NRT 9/20/2012 THAN, BA T. 391.22 REIMB CONF TRAVEL EXP NACWA 07115 -17 8/9!2012 VASSALLO, THEA 911.73 REIMS CONF TRAVEL EXP 12/2 -7 CALPELRA 12/27/2012 VEGA, JOSE 1,074.67 REIMB TRAING TRAVEL EXP 9/23 -9/28 AVAYA 1 10/18/2012 Report: N:W000UNTINGXGMTEMP11Cognos ReportslEmployee Reimbursements.imr Page 4 Review Date: 8/14/2013 CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE AND BOARD MEMBER REIMBURSEMENTS FISCAL YEAR 2012 -13 Employee /Board Member Transaction Amount Description Additional Description /Reference Check Date VON STETTEN, CARL 1,631.87 REIMS CONF TRAVEL EXP 7/22 -7127 ESRI 8/9/2012 VON STETTEN, CARL 41.14 REIMS MILEAGE 1/1/2013 1/24/2013 WALKER, ROBERT 140.00 REIMS CWEA MEMBERSHIP WALKER,R 10/18/2012 WALKER, ROBERT 140.00 REIMS CERT FEE GD I CWEA CERT GO 1 5/16/2013 WALUS, ANDREW 140.00 REIMB CERT FEE GD I CWEA CERT GD 1 5/16/2013 WAN, JIM 155.00 REIMS CERT FEE GDII CWEA GD 11 LAB 4/18/2013 WAN, JIM 99.78 REIMB MEETING TRAVEL EXP 5/23 CWEA 6/13/2013 WAPLES, JUSTIN 899.00 REIMS TUITION EXP PE RVW 01 -03/13 414/2013 WAPLES, JUSTIN 98.29 REIMB CONF TRAVEL EXP 6/10-12/13 WEF 6/20/2013 WEER, ALAN R. 1,187.15 REIMB WEFTEC CONF EXP 9 /29- 10 /3WEFTEC 11/1/2012 WEER, ALAN R. 844.30 REIMB CONF TRAVEL EXP 4116 -4/19 CWEA 5/9/2013 WEIR, KELLY 592.36 REIMS CONF TRAVEL EXP 6 /3- 6 /13HEXAGON 6/20/2013 WENSLAWSKI, MARK 129.75 PROJ /2012 CIPP PROJECT WENSLAWSKI/ WIC 12/13/2012 WENSLAWSKI, MARK 207.01 REIMS SEMINAR TRAVEL EXP 3/04 -6 NASTT 3/14/2013 WEST, KATHLEEN 300.00 REIMB RE BROKER LICENSE WEST REIMB 3/28/2013 WEST, KATHLEEN 499.00 REIMB MLS RENEWAL FEE MLS FEE 13/14 5130/2013 WHITMAN, JOSHUA 155.00 REIMB CERT FEE GD 11 CWEA CERT GD II 5/16/2013 WILLIAMS, DAVID R. 1,641.54 REIMS CASA CONF TRAVL EXP 2/24 -27 CASA 4/4/2013 WYATT, DAVID 174.31 REIMS MEETING TRAVEL EXP 09127 HHWIE 10/4/2012 WYATT, DAVID 817.56 REIMB CONF TRAVEL EXP 09/16 -20 NAHMMA 10/4/2012 WYATT, DAVID 160.49 REIMS TRAVEL EXP COMPL 05/21 AUDIT 5/30/2013 WYATT, DAVID 150.09 REIMS MEETING TRAVEL EXP 05/29 NORCAL 6/6/2013 ZAPIEN, SELINA 716.77 REIMS TRAING TRAVEL EXP 9/25 -28 WRIPAC 10/18/2012 ZAPIEN, SELINA 763.16 REIMB CONF TRAVEL/NEOGOV 10 /16- 19NEOGOV 10/25/2012 ZAPIEN, SELINA 1,416.11 REIMB CONF TRAVEL EXP 12/2 -7 CALPELRA 1 2/1 312 01 2 Report Total $ 95,452.26 Report: WACCOUNTING \GMTEMP11Cognos ReportMEmployee Reimbursements.imr page 5 SPECIAL DISTRICTS FINANCIAL TRANSACTIONS REPORT COVER PAGE Central Contra Costa Sanitary District (Contra Costa) SCO Reporting Year 2012 ID Number: 12300702700 Submitted by the Reporting Entity Fiscal. Year Ended (MM /DD/YY) FINANCE MANAGER Signature Title THEA VASSALLO 10/17/12 Name (Please Print) Date Per Government Code section 53891, this report is due within 90 days after the end of the fiscal year. If filed in electronic format, the report is due within 110 days after the end of the fiscal year. Per Government Code section 26909, a copy of the independent audit is to be filed with the Controller within 12 months after the close of the fiscal year To File Electronically: 1. Complete all forms as necessary 2. Transmit the completed output file using a File Transfer Protocol (FTP) program or via diskette 3 A responsible member of the agency must sign this cover page and mail it to either address below. Report w0l not be considered filed until receipt of this signed cover page. Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section P. O. Box 942850 Sacramento, CA 94250 To File A Paper Report: 1 Complete all forms as necessary. 2 A responsible member of the agency must sign this cover page and mail it to either address below Express Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section 3301 C Street, Suite 700 Sacramento, CA 95816 Supplement to the Annual Report of Special Districts Special District ID Number: 2100702700 Name of District: CCNTRA COSTA SAN 1 TARY D 1 STR 1 CT Mark the appropriate box below to indicate the ending date of your agency's fiscal year. Report data for that period only. r July 2011 r October 2011 r January 2012 r April 2012 t" August 2011 r December 2011 r February 2012 r May 2012 r September 2011 r �c p March 2012 June 2012 Return this form to the California State Controller's Office. If you have any questions regarding this form please contact: U.S Bureau of the Census, Shannon Doyle, 1 -800- 242 -4523 A. Personnel Expenditures Please report your government's total expenditures for salaries and wages during the year, including amounts paid on force account construction projects. ZOO: $23.913,931 B. Capital Outlay Expenditures for Enterprise Activities Please report your government's capital outlay expenditures for the following enterprise activities, if applicable: Airport Enterprise Amount Land and Equipment Census Code GO I) $ Construction Census Code FO I) $ Electric Enterprise Amount Land and Equipment Census Code G92 $ Construction Census Code F92 $ Harbor and Port Enterprise Amount Land and Equipment Census Code G87 $ Construction (Census Code F87 ) $ Hospital Enterprise Amount Land and Equipment Census Code G36 $ Construction Census Code F36 $ Waste Dis osaI Enterprise Amount Land and E ui ment Census Code G80 $ Construction Census Code F80 $ Water Enterprise Amount Land and Equipment Census Code G9 I) $ Construction Census Code F91 $ U S Bureau of the Census — Revised 11/2011 grol 91910 dd g 13 • File Edit View Favorites Tools Help F Search Foiciers 0� .I] ftp: //ftp.sco.ca.gov/ Go __._._.. 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B.CL. Central Contra Costa Sanitary District October 12, 2012 TO: HONORABLE BOARD OF DIRECTORS VIA: ANN FARRELL, GENERAL MANAGER FROM: THEA VASSALLO, FINANCE MANAGERI SUBJECT: JUNE 30, 2012 AUDITED FINANCIAL STATEMENTS Attached is the final draft of the June 30, 2012 audited financial statements prepared by Cropper Accountancy Corporation. New this Year: Attached is the general communications letter from Cropper Accountancy to the Board of Directors (see Attachment 1). Staff asked Cropper Accountancy Corporation to present a Management Letter should they have recommendations so that we have an opportunity to evaluate these suggestions and continually review and improve our internal processes. This letter is provided as Attachment 2. The results of the audit and management letter will be presented by John Cropper at the Board Budget and Finance Committee meeting on October 16, 2012. John Cropper will also provide a brief review of the results with the full Board on October 18, 2012. Typically no changes are made to the final draft financial statements during the Board Budget and Finance Committee review. Should any narrative changes be required based on the Board Budget and Finance Committee review, the audited financial statements will be updated and highlighted changes will be provided to the Board at the October 18th Board meeting. Please contact me if you have any questions or concerns at Extension 740. NAADMINSUPWDMIN\FINANCE MANAGERWemos\2012 \Cover memo June 30, 2012 Audited Financial Statements 10- 12- 12.doc office locahon marling address Attachment 1 2700 Ygnacio Valley Rd, Ste 230 2977 Ygnacto Valley Rd, PM8 460 ►wm cropperaccountancy com Walnut Creek, CA 94598 Walnut Creek, CA 94598 (925) 932 -3860 tel (925) 476.9930 efax CERTIVIEO PUBLIC ACCOUNTANTS October 9, 2012 To the Board of Directors of Central Contra Costa Sanitary District Martinez, California We have audited the financial statements of Central Contra Costa Sanitary District ( CCCSD) for the year ended June 30, 2012, and have issued our report thereon dated October 4, 2012. Professional standards require that we provide you with the following information related to our audit. Compliance with CCCSD Investment Policy Performance Evaluation We have completed a performance evaluation of the District's investment objective for the fiscal year ended June 30, 2012, and have verified that the objective of achieving a market- average rate of return is being realized. The fiscal 2012 targeted return on 90 -day T -Bills was 0.05 %. The actual rate of return for the District was 0.43 %. Based on this comparison, the Board's desired objective has been realized. Our Responsibility under U.S. Generally Accepted Auditing Standards As stated in our engagement letter dated April 19, 2012, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Other Information in Documents Containing Audited Financial Statements The auditor's responsibility for other information in documents containing the Central Contra Costa Sanitary District financial statements does not extend beyond the financial information. As such, the auditor does not have the obligation to perform any procedures to coordinate other information in these documents. However, the auditor reserves the right to read and comment on the other information in the documents. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our meetings or correspondence about planning matters. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by Central Contra Costa Sanitary District are described in Note 1 to the financial statements. professional. pkwnatw. Service. No new accounting policies were adopted and the application of existing policies was not changed during fiscal 2012. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was Note 10 - Other Post - Employment Benefits (OPEB). The District's actuarial report (updated June 30, 2010) estimated the District's OPEB liability to be $80,933,000. This estimate is funded over 30 years based on various actuarial assumptions. In the fiscal year ended June 30, 2010, the District provided a $986,000 loss provision for the Prop IA loan. This allowance was provided due to the California budget issues and general economy. There was no change in this allowance for the fiscal year ended June 30, 2012 -Note 3. Also, the permit counter receivable is estimated on the books to be $214,000 -Note 3. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The attached schedule discloses one uncorrected misstatement of the financial statements. Management has determined that its effect is immaterial to the financial statements taken as a whole. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated October 4, 2012. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 2 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the District's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of the Board of Directors and management of Central Contra Costa Sanitary District and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, dw� 4wo 44o..e 4naw CROPPER ACCOUNTANCY CORPORATION Client: 93404 - SD Central Contra Costa Sanitary District Engagement: Central Contra Costa SD 2092 Trial Balance: TB 00 - Trial Balance - original Workpaper: TB 03 - Proposed JE Report Account Description W/P Ref Debit Proposed JE # 7 Proposed entry to book legal and engineering fees not accrued for at year end 1- 100.0802 1- 100.0803 1- 200.0803 1- 300.0803 1- 400.0803 3- 000.1421 1- 221.0100 3- 221.0100 Total LEGAL SERVICES -BOARD LEGAL SERVICES -STAFF LEGAL SERVICES -STAFF LEGAL SERVICES -STAFF LEGAL SERVICES -STAFF LEGAL SERVICES ACCOUNTS PAYABLE ACCOUNTS PAYABLE L 10a 5,121.98 29,341.02 14,133.84 138.43 199.20 32,135.17 81,069.64 10/10/2012 5:09 PM Credit 48, 934,47 32,135.17 81,069.64 1 of 1 office /ocaton 2700 Ygnaclo Valley Rd, Ste 230 Walnut Creek, CA 94598 (925) 932.3860 tel CERTIr1ED PUBLIC ACCOUNTANTS To Board of Directors and Management of Central Contra Costa Sanitary District Martinez, California mailing address 2977 Ygnaclo Valley Rd, PMB 460 Walnut Creek, CA 94598 (925) 476 -9930 efax Attachment 2 wufw cropperaccountancy. com In planning and performing our audit of the financial statements of the Central Contra Costa Sanitary District as of and for the year ended June 30, 2012, in accordance with auditing standards generally accepted in the United States of America, we considered the District's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified several deficiencies in internal control that we consider to be significant. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiencies in the District's internal control to be significant deficiency so far as the financial statements: 1. Continuity of Personnel As part of an audit, auditors do many risk assessments including the assessment of environmental controls, which is defined as the tone of management toward controls. We deemed the environmental controls to be very good. That said, this past year has been a year with an unusual amount of change, including numerous management -level retirements. We observed some transitional risk as various long time employees retired and their positions were replaced with other long time employees as well as some new hires. We would expect fiscal 2013 to be a difficult one as job responsibilities are further delineated and inherit risk increases. We recommend the board monitor next year's ongoing transition in the accounting department since it serves as a key role in the success and management of the District. professional. personalized. service. Pagel of 3 2. General Ledger System The auditors have worked with the current general ledger for a several years. The system is difficult to work with for the auditors. It is outdated and clunky. The accounting department works well with the system but efficiency is lost as accounting staff members sometimes must use manual workarounds such as pivot tables for inventory and the creation of special reports by the staff to download trial balances. We feel a newer system would enhance the efforts of the newer staff and auditors to drill down into accounts more efficiently. Efficiencies would be gained by both staff and others using or relying on the system. We understand the District is moving to replace the current general ledger system. We recommend that the District do so as soon as the accounting department feels they are ready to implement a new system. We further recommend any system conversion be implemented at the beginning of a new fiscal year and the District run the conversion parallel to the old HTE /SunGard system. 3. Permit Counter The permit counter receivable process was unknowingly a material problem for many years. The extent of the problem was not known by the accounting department or its Districts auditors. Although we believe that overall, the District has strong environmental controls, the permit collection process and its accounts receivable system module were most likely known at some level of management. We recommend that all District management involve the accounting department management at all levels of internal controls surrounding accrual accounting issues and/or policy. Accounting management is best suited to make judgments concerning the significance to the District's financial processes. Furthermore, we agree with outside consultants that the District's primary control would be requiring homeowners to show evidence of obtaining a sewage connection permit prior to issuing their City permit. OTHER MATTERS Leval Costs As part of our audit, we consult with staff about pending legal problems and review attorney letters to insure that they are properly reserved in the general ledger. At the end of the fiscal year, management was working to determine the total accrual needed for legal costs due to various legal issues the District is currently faced with, but it was unable to accurately estimate the amount during the year end closing process. As part of our audit, we passed a fairly significant journal entry of slightly over $80,000. The journal entry was not recorded in the audited financials because it would have complicated the accounting process in relation to the District's agreement with the City of Concord. We recommend that accounting book all legal invoices (or book an estimate for invoices not received) as part of the year end close to help avoid reconciliation issues with the attorney letters. Furthermore, if applicable, we recommend accounting be updated on risk management estimates for the accrual of necessary legal reserves. Inventory We have great respect for the accuracy of the inventory counts we do on a rotation basis. However, in the current year we had some fairly significant discrepancies regarding low cost Page 2 of 3 items with high turnover (such as safety glasses) which required us to perform some additional test counts. We have been informed by Warren Gaines, Material Services Supervisor that as a result of our audit he is instituting a procedure to perform more frequent test counts on the high turnover items. We recommend that the plan to perform more frequent test counts on the high turnover items should be fully implemented and also recommend that procedures for issuing out inventory items to various departments be tightened to eliminate items being released to departments but not recorded. This letter is intended to be constructive. It is not intended to diminish the great jab that staff has done this past year as well as their efforts during the audit. This communication is intended solely for the information and use of management, the Board of Directors, and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. Walnut Creek, CA October 9, 2012 �L �Cto�ttiTA� �p'�'iiA•'lfl4. ROPPER ACCOUNTANCY CORPORATION Page 3 of 3 CERTIFIED PUBLIC ACCOUNTANTS CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCIAL STATEMENTS JUNE 309 2012 professionart., e�i. service. TABLE OF CONTENTS Paae No. Independent Auditors' Report 1-2 Management's Discussion and Analysis 3-8 Statement of Net Position 9 Statement of Revenues, Expenses, and Changes in Net Position 10 Statement of Cash Flows 11 Notes to Financial Statements 12-37 Supplementary Information: Combining Schedule of Net Position 38 Combining Schedule of Revenues, Expenses, and Changes in Net Position 39 Schedule of Running Expense — Comparison of Budget and Actual 40 Expenses by Department Running Expense — Schedule of Supplemental Net Position Analysis 41 This page intentionally left blank • , , I, office location mailing address 2700 Ygnacio Valley Rd, Ste 230 2977 Ygnacio Valley Rd, PMB 460 www.cropperaccountancy.com Walnut Creek, CA 94598 Walnut Creek, CA 94598 (925) 932 -3860 tel (925) 476 -9930 efax CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Board of Directors of Central Contra Costa Sanitary District Martinez, California We have audited the accompanying financial statements of the Central Contra Costa Sanitary District as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express -an opinion on these financial statements based on our audit. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the State Controller's Audit Requirements for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Contra Costa Sanitary District as of June 30, 2012, and the changes in financial position and cash flows thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the California State Controller's office for Special Districts. Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide assurance. pmfessiorlN. pwomaked. serke. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Central Contra Costa Sanitary District's financial statements as a whole. Management's Discussion and Analysis, budgetary comparison information, and supplemental information on pages 38 — 41 are presented for purposes of additional analysis and are not a required part of the financial statements. Management's Discussion and Analysis, budgetary comparison information, and supplemental information on pages 38 — 41 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. October 4, 2012 2 e-4� &PA*;rt CROPPER ACCOUNTANCY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the District's annual financial report presents an analysis of the District's financial performance during the fiscal year ended June 30, 2012. This information is presented in conjunction with the audited financial statements, which follow this report. FINANCIAL HIGHLIGHTS The District's 2011 -12 financial highlights are listed below. These results are discussed in more detail later in the report. • The District's total ending net position increased by $3.8 million or 0.61% in 2011 -12 when compared to fiscal year 2010 -11; when comparing 2011 -12 to 2009 -10, net position has increased by $5.2 million or 0.83 %. This is mainly due to capital project asset additions. • Total revenues in 2011 -12 increased by $2.1 million or 2.87% when compared to 2010 -11; when comparing 2011 -12 to 2009 -10, total revenue has increased by $2.4 million or 3.21%. The total SSC rate increased by 9.6 %; a larger portion of the internal SSC allocation was shifted from Operating Revenue to Capital Contributions. • Total 2011 -12 expenses increased by $6.0 million or 7.36% compared to 2010 -11; when comparing 2011 -12 to 2009 -10, total expenses increased by $8.0 million or 10.10 %. This is mainly due to higher cost of total labor and technical services for temporary staff. • Capital Contributions increased in 2011 -12 compared to 2010 -11 by $6.4 million or 69.90 %. Capital Contributions decreased by $ -0.3 million or -1.95% comparing 2011 -12 to 2009 -10. The increases in 2011 -12 were due to the SSC rate increase (capital allocation) and higher connection fees when comparing 2011 -12 to 2010 -11. The volatile housing and construction markets caused swings in connection fee revenue (Connection fee revenue of $5.7 million in 2011 -12, $3.5 million in 2010 -11 and $7.1 million in 2009 -10). OVERVIEW OF THE FINANCIAL STATEMENTS This annual report includes management's discussion and analysis report, the independent auditor's report and the basic financial statements of the District. The financial statements also include notes that explain information in the financial statements in more detail. REQUIRED FINANCIAL STATEMENTS The Financial Statements of the District report information utilizing methods similar to those used by private sector companies. These statements offer short and long -term financial information about its activities. 3 Statement of Net Position — reports the District's current financial resources (short-term spendable resources) with capital assets and long -term obligations • Statement of Revenues, Expenses and Changes in Net Position — reports the District's operating and non - operating revenues by major source along with operating and non - operating expenses and capital contributions • Statement of Cash Flows — reports the District's cash flows from operating activities, non- capital financing activities, capital and related financing activities, and investing activities STATEMENT OF NET POSITION The following table shows the condensed statement of net position of the Central Contra Costa Sanitary District for the past three years: Condensed Statement of Net Position Fiscal Year Fiscal Year Fiscal Year 2011 -2012 2010 -2011 2009 -2010 Current Assets $ 78,506,812 $ 80,407,120 $ 77,968,736 Capital Assets 597,689,744 593,461,791 586,785,155 Other Non - current Assets 9,332,364 12,456,011 27,196,507 Total Assets 685,528,920 686,324 922 691,950,398 Current Liabilities 11,128,540 10,682,746 11,255,377 Non - Current Liabilities 47,797,407 52,844,305 59,243,809 Total Liabilities 58,925,947 63,527,051 70,499,186 Invested in Capital Assets, Net of Related Debt 549,462,506 541,613,208 531,324,187 Restricted - Debt Service 4,663,601 4,612,103 4,565,970 Unrestricted 72,476,866 76,572,560 85,561,055 Total Net Position $ 626,602,973 $ 622,797,871 $ 621,451,212 The total net position of the District increased from $621.5 million in 2009 -10 to $622.8 million in 2010 -11 and to $626.6 million in 2011 -12. The increase in net position over the 3 -year period totals $5.2 million and is the result of the combination of net income and capital contributions; comparing 2011 -12 to 2010 -11 net position increases by $3.8 million. By far the largest portion of the District's net position (87.7% percent) reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its ratepayers; consequently, these assets are not available for future spending. Although the District's investment in its capital assets is reported net of debt, it should be noted that the funds needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. There is currently $4.7 million restricted for debt service. The remaining balance of $72.4 million in unrestricted net position may be used to meet the District's ongoing obligations to its ratepayers and creditors. The unrestricted net position may also be used for payment of long -term unfunded liabilities. 4 REVIEW OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION The table below shows the condensed statement of revenues, expenses, and changes in net position for the Central Contra Costa Sanitary District for the past 3 years: Condensed Statement of Revenues, Expenses, and Changes in Net Position Fiscal Year Fiscal Year Fiscal Year 2011 -2012 2010 -2011 2009 -2010 Sewer Service Charges SSC $ 59,771,237 $ 58,320,822 $ 57,357,188 Other Service Charges and misc. 1,845,402 1,575,738 1,474,898 Total Operating Revenue 61,616,639 59,896,560 58,832,086 Property Tax 12,047,169 12,213,624 12,260,123 Permit & Inspection Fees 903,810 895,825 776,348 Interest and All Other 1,226,598 673,990 1,568,235 Total Non-Operating Revenues 14,177,577 13,783,439 14,604,706 Total Revenues 75,794,216 73,679,999 73,436,792 Total Labor and Benefits 45,562,430 41,705,131 39,986,763 Chemicals & Utilities 6,090,408 5,664,360 6,268,343 Repairs and Maintenance 3,068,604 2,972,395 2,868,675 Professional, Legal and Outside Services 4,099,876 2,425,612 2,129,552 Materials & Supplies 2,031,401 1,944,767 1,705,649 Hauling and Disposal 1,009,137 944,394 939,960 Self- Insurance Expense 810,849 1,003,115 746,612 All Other 1,612,482 1,575,905 1,223,191 Depreciation Expense 21,190,059 20,580,061 20,969,429 Total Operating Expenses 85,475,246 78,815,740 76,838,174 Non - Operating Expense - Interest Expense 1,919,375 2,585,112 2,539,383 Total Expenses 87,394,621 81,400,852 79,377,557 Income Before Capital Contributions 11,600,405 7,720,853 5,940,765 Customer Contributions SSC 8,888,663 5,018,092 6,793,040 Contributed Sewer Lines 792,011 533,616 1,840,259 Capital Contributions - Connection Fees 5,724,833 3,515,804 7,078,635 Total Capital Contributions 15,405,507 9,067,512 15,711,934 Change in Net Position 3,805,102 1,346,659 9,771,169 Beginning Net Position 622,797,871 621,451,212 611,680,043 Ending Net Position $ 626,602,973 $ 622,797,871 $ 621,451,212 In 2011 -12, operating revenues increased by $1.7 million or 2.87% compared to 2010 -11 and increased by $2.8 million or 4.73% comparing 2011 -12 to 2009 -10. Total non - operating revenue increased in 2011 -12 compared to 2010 -11 by $0.4 million or 2.86% and decreased by -$0.4 million or -2.92% comparing 2011 -12 to 2009 -10. The change in total revenue resulted in an increase of $2.1 million or 2.87% comparing 2011 -12 to 2010 -11 and increased by $2.4 million or 3.21% comparing 2011 -12 to 2009 -10. There was a 9.6% SSC rate increase in 2011 -12 but no SSC rate increases occurred in 2010 -11 and 2009 -10. Property Tax revenue has basically remained flat for the 3 -year period due to housing values remaining low. 5 In 2011 -12, total expenses increased by $6.0 million or 7.36% compared to 2010 -11. Comparing 2011- 12 to 2009 -10, total expenses were $8.0 million or 10.10% higher. Increases are mainly due to higher labor and benefit costs along with technical services for temporary staff. Labor costs increased due to employee benefit costs (primarily pension and healthcare costs), cost -of- living adjustments, merit increases, and filling of vacant positions. Depreciation expense increased due to new capital additions. Non - Operating Expense is mainly driven by debt service interest expense. Total income before capital contributions went from -$6.0 million in 2009 -10 to -$7.2 million in 2010 -11 and -$11.6 million in 2011 -12. Total capital contributions in 2011 -12 were $15.4 million compared to $9.1 million in 2010 -11 and $15.7 million in 2009 -10. This was mainly due to higher customer contributions (SSC) in 2011 -12 due to the 9.6% rate increase, shift of the internal SSC revenue allocation, and volatility in connection fees due to the fluctuation of the housing and construction markets. Connection fees for one large complex were received in 2009 -10 which contributed to the $15.7 million in revenue that year. The total change in net position decreased by -$6.0 million or - 61.06% when comparing 2011 -12 to 2009 -10. CAPITAL ASSETS Capital assets include the District's entire major infrastructure including wastewater treatment facilities, sewers, land, buildings, pumping stations, vehicles, intangible assets and furniture and equipment exceeding our capitalization policy limit of $5,000, net of depreciation. As of June 30, 2012, the District's investment in capital assets totaled $597.7 million, which is an increase of $4.2 million or 0.71% over the capital asset balance of $593.5 million at June 30, 2011. Capital Assets increased by $10.9 million or 1.86% comparing 2011 -12 to 2009 -10. A comparison of the District's capital assets over the past 3 fiscal years is presented below: Fiscal Year Fiscal Year Fiscal Year Capital Assets 2011 -2012 2010 -2011 2009 -2010 Land $ 17,114,720 $ 17,114,720 $ 17,114,720 Sewage Collection System 303,693,519 290,317,724 286,351,576 Contributed Sewer Lines 149,895,302 149,110,351 148,580,734 Outfall Sewers 8,518,443 8,518,443 8,518,443 Sewage Treatment Plant 292,432,883 287,537,513 275,413,411 Recycled Water Infrastructure 13,335,295 12,300,131 12,281,480 Pumping Stations 54,412,730 54,412,730 53,750,940 Buildings 34,477,124 31,317,466 21,206,981 Intangible Assets 2,463,834 2,058,921 1,806,272 Furniture & Equipment 14,031,564 13,243,330 13,756,662 Motor Vehicles 6,010,773 6,038,527 5,759,209 Construction In Progress 22,469,694 22,632,142 26,735,297 Subtotal 918,855,881 894,601,998 871,275,725 Less Accumulated Depreciation 321,166,137 301,140,207 284,490,570 Total Capital Assets (net of depreciation) $ 597,689,744 $ 593,461,791 $ 586,785,155 The major reasons for the increase in capital assets, net of depreciation, of $4.2 million from 2010 -11 to 2011 -12 and $10.9 million from 2009 -10 to 2011 -12, are as follows: • Treatment plant infrastructure renovations, upgrades, equipment, and improvements increased by $4.9 million comparing 2011 -12 to 2010 -11 and $17.0 million comparing 2011 -12 to 2009 -10. • Buildings increased by $3.2 million comparing 2011 -12 to 2010 -1.1 and $13.3 million comparing 2011 -12 to 2009 -10. The Walnut Creek Collection System Operations new building construction substantially completed cost of $11.5 million was capitalized in 2010 -11 and $3.2 million more was capitalized in 2011 -12. • Sewer pipe ongoing renovations, pumping station improvements, and contributed sewer lines increased by $14.2 million comparing 2011 -12 to 2010 -11 and $19.3 million comparing 2011 -12 to 2009 -10. • All other asset categories, including construction in progress, increased by $2.0 million comparing 2011 -12 to 2010 -11 and deceased by $2.0 million comparing 2011 -12 to 2009 -10. • Capital Asset increases are offset by an increased subtraction of accumulated depreciation of $20.0 million comparing 2011 -12 to 2010 -11 and $36.7 million comparing 2011 -12 to 2009 -10 due to our increasing capital asset investment and its associated depreciation expense. See Note 4 in the audited financial statements. DEBT ADMINISTRATION The District has the following outstanding debt as of June 30, 2012: Revenue Bonds $ 47,200,000 Water Reclamation Loan 1,027,238 $ 48,227,238 See Note 6 in the audited financial statements. ECONOMIC AND OTHER FACTORS The Federal and State of California economies still struggle to recover from the 2008 recession. Federal economic challenges continue and there is added uncertainty due to the 2012 Presidential election outcome not being known at this time. The housing market is still in recovery and continues to impact user fees. Fiscal year 2011 -12 resulted in the fourth consecutive year to end with a deficit for the State of California. Pension reform is in the spotlight and the governor's 2012 -13 Budget Package relies on voters passing Proposition 30, which temporarily increases state sales and income taxes. 7 Items impacting the District are: • Employee Memorandum of Understanding contract negotiations; although the current contracts end as of April 17, 2012 negotiations are still ongoing • Employee benefits may be reduced due to the negotiations outcome in which employees may pay a larger share of benefit costs. Also, current and future legislation impacting public employee pensions is in play, also calling for higher employee contributions and lower pensions by eliminating spiking. Also, a larger than number of anticipated early retirements may occur depending on negotiated and legislated changes to public employee salary and benefits. • Regulatory requirements becoming more stringent, causing the District to spend more on compliance, both for operations and maintenance costs and capital projects. • Anticipated continuation of the slow recovery and associated impacts to connection and other fees. • Continued low interest rates negatively impact interest earnings for District temporary investments as well as OPEB trust and pension plan assets. In addition to making efforts to reduce spending and improve process efficiencies, the District has the ability to raise the Sewer Service Charge to meet our long -term commitments. The District has a Standard and Poors AAA rating, and can obtain bond financing if necessary. FINANCIAL CONTACT The financial report is designed to provide our customers and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact: Finance Manager, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, CA 94553. FINANCIAL STA TEMENTS CENTRAL CONTRA COSTA SANITARY DISTRICT Statement of Net Position June 30, 2012 Noncurrent Assets 2012 ASSETS 193,592 Current Assets 5,318,908 Cash and cash equivalents $ 42,428,045 Short term investments 16,496,087 Accounts receivable, net 15,019,382 Interest receivable 55,148 Parts and supplies 2,007,445 Prepaid expenses 2,500,705 Total Current Assets 78,506,812 Noncurrent Assets Restricted cash and equivalents 193,592 Restricted investments 5,318,908 Land, property, plant and equipment, net 575,220,050 Construction in progress 22,469,694 Contractual and Alhambra Valley assessment districts receivable 2,221,330 OPEB asset (obligation) 1,263,542 Revenue bond issuance costs, net 334,992 Total Noncurrent Assets 607,022,108 Total Assets 685,528,920 LIABILITIES Current Liabilities Accounts payable and accrued expenses 4,904,644 Interest payable 754,197 Current portion of refunding revenue bonds 3,605,000 Current portion of water reclamation loan contract 160,411 Current portion of accrued compensated absences 375,000 Liability for uninsured claims 1,000,000 Refundable deposits 329,288 Total Current Liabilities 11,128,540 Noncurrent Liabilities Revenue bonds, net of current portion 43,595,000 Accrued compensated absences, net of current portion 3,335,580 Water reclamation loan contract, net of current portion 866,827 Total Noncurrent Liabilities 47,797,407 Total Liabilities 58,925,947 NET POSITION Net investment in capital assets 549,462,506 Restricted for debt service 4,663,601 Unrestricted 72,476,866 Total Net Position $ 626,602,973 The accompanying notes are an integral part of the financial statements 9 CENTRAL CONTRA COSTA SANITARY DISTRICT Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2012 OPERATING EXPENSES Sewage collection and pumping stations 11,987,373 Sewage treatment 23,708,309 Engineering 8,023,226 Administrative and general 20,566,279 Depreciation 21,190,059 Total operating expenses 85,475,246 OPERATING LOSS (23,858,607) NON - OPERATING REVENUES (EXPENSES) Taxes 2012 OPERATING REVENUE 903,810 Sewer service charges (SSC) 49,123,848 Service charges - City of Concord 10,647,389 Other service charges 915,485 Miscellaneous charges 929,917 Total operating revenue 61,616,639 OPERATING EXPENSES Sewage collection and pumping stations 11,987,373 Sewage treatment 23,708,309 Engineering 8,023,226 Administrative and general 20,566,279 Depreciation 21,190,059 Total operating expenses 85,475,246 OPERATING LOSS (23,858,607) NON - OPERATING REVENUES (EXPENSES) Taxes 12,047,169 Permit and inspection fees 903,810 Interest earnings 294,938 Interest expense (1,919,375) Other income (expense) 931,660 Total non - operating revenues (expenses) 12,258,202 Income before contributions and transfers (11,600,405) City of Concord contributions to capital costs 2,541,688 Customer contributions to capital cost (SSC) 6,346,975 Contributed sewer lines 792,011 Capital contributions - connection fees 5,724,833 CHANGE IN NET POSITION 3,805,102 Net Position - Beginning 622,797,871 Net Position - Ending $ 626,602,973 The accompanying notes are an integral part of the financial statements 10 CENTRAL CONTRA COSTA SANITARY DISTRICT Statement of Cash Flows Year Ended June 30, 2012 The accompanying notes are an integral part of the financial statements 2012 Cash Flows From Operating Activities: Receipts from customers and users $ 60,547,670 Payments to suppliers (113,842,860) Payments to employees and related benefits 48,453,775 Net cash used in operating activities (4,841,415) Cash Flows From Noncapital Financing Activities: Receipt of taxes 12,047,169 Inspection/permit fees and other non - operating income 1,835,469 Net cash provided by non capital and related financing activities 13,882,638 Cash Flows From Capital And Related Financing Activities: Capital contributions 9,680,674 Connection fees 5,724,833 Acquisition and construction of capital assets (26,578,417) Principal paid on bonds (3,601,640) Interest paid on bonds (1,965,575) Net cash provided by (used in) capital and related financing activities (16,740,125) Cash Flows From Investing Activities Purchases of short term investments (1,503,427) Interest received 301,631 Net cash provided by (used in) investing activities (1,201,796) Net increase (decrease) in cash and cash equivalents (8,900,698) Cash and cash equivalents, July 1 51,522,335 Cash and Cash equivalents, June 30 $ 42,621,637 Reconciliation of operating loss to net cash provided (used) by operating activities Operating gain (loss) (23,858,607) Adjustments to reconcile operating income to net cash used in operating activities: Depreciation expense 21,190,059 Net book value on capital assets retired 1,160,405 (Increase) decrease in: Accounts receivable (1,068,969) Parts and supplies (164,977) Prepaid expenses (818,962) Increase (decrease) in: Accounts payable and accrued expenses 385,104 Refundable deposits 102,825 OPEB obligation (346,806) Accrued compensated absences (1,421,487) Net cash provided by (used in) operating activities $ (4,841,415) Noncash investing, capital, and financing activities Contributions of capital assets $ 792,011 End of Period: Unrestricted cash and equivalents $ 42,428,045 Restricted cash and equivalents 193,592 $ 42,621,637 The accompanying notes are an integral part of the financial statements NOTES TO THE FINANCIAL STATEMENTS CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting g ntity The Central Contra Costa Sanitary District, a special district and a public entity established under the Sanitary District Act of 1923, provides sewer service for the incorporated and unincorporated areas under its jurisdiction. A Board of Directors comprised of five elected members governs the District. As required by accounting principles generally accepted in the United States of America, these basic financial statements present the financial statements of Central Contra Costa Sanitary District and its component unit. The component unit discussed in the following paragraph is blended in the District's reporting entity because of the significance of its operational or financial relationship with the District. Blended Component Unit — Component units are legally separate organizations for which the District is financially accountable. Component units may also include organizations that are fiscally dependent on the District, in that the District approves their budget, the issuance of their debt or the levying of their taxes. In addition, component units are other legally separate organizations for which the District is not financially accountable but the nature and significance of the organization's relationship with the District is such that exclusion would cause the District's financial statements to be misleading or incomplete. For financial reporting purposes, the component unit discussed below is reported in the District's financial statements because of the significance of its relationship with the District. The component unit, although a legally separate entity, is reported in the financial statements using the blended presentation method as if it were part of the District's operations because the Governing Board of the component unit is essentially the same as of governing board of the District and because its purpose is to finance facilities to be used for the direct benefit of the District. The Central Contra Costa Sanitary District Facilities Financing Authority was organized solely for the purpose of providing financial assistance to the District. The authority does this by acquiring, constructing, improving and financing various facilities, land and equipment purchases, and by leasing or selling certain facilities, land and equipment for the use, benefit and enjoyment of the public served by the District. The Corporation has no members and the Board of Directors of the Corporation consists of the same persons who are serving as the Board of Directors of the District. There are no separate basic financial statements prepared for the Corporation. Basis of Accounting The District's financial statements are prepared on the accrual basis of accounting. The District applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued GASBS No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. This statement incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. This includes pronouncements by the Financial Accounting Standards Board (FASB), Accounting Principles Board Opinions (APB), and the Accounting Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee on Accounting Procedure, unless those pronouncements conflict with or contradict with GASB pronouncements. 12 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The District is a proprietary entity; it uses an enterprise fund format to report its activities for financial statement purposes. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the cost and expenses, including depreciation, of providing goods or services to its customers be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues earned, expense incurred, and net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Enterprise funds are used to account for activities similar to those in the private sector, where the proper matching of revenues and costs is important and the full accrual basis of accounting is required. With this measurement focus, all assets and liabilities of the enterprise are recorded on its statement of net assets, all revenues are recognized when earned and all expenses, including depreciation, are recognized when incurred. Enterprise funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. The principal operating revenues of the District are charges to customers for services. Operating expenses for the District include the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. For internal operating purposes, the District's Board of Directors has established four separate sub - funds, each of which includes a separate self - balancing set of accounts and a separate Board approved budget for revenues and expenses. These sub -funds are combined into the single enterprise fund presented in the accompanying financial statements. The nature and purpose of these sub -funds are as follows: Running Expense Running expense accounts for the general operations of the District. Substantially all operating revenues and expenses are accounted for in this sub -fund. Sewer Construction Sewer construction accounts for non - operating revenues, which are to be used for acquisition or construction of plant, property and equipment. Self Insurance Self insurance accounts for interest earnings on cash balances in this sub -fund and cash allocations from other sub - funds, as well as for costs of insurance premiums and claims not covered by the District's insurance coverage. 13 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Debt Service Debt service accounts for activity associated with the payment of the District's long term bonds and loans. That portion of the District's net assets which is allocable to each of these sub -funds has been shown separately in the accompanying supplementary information to the financial statements. The District's Board of Directors adopts annual budgets on a basis consistent with accounting principles generally accepted in the United States of America. Investments Investments held at June 30, 2012, with original maturities greater than one year, are stated at fair value. Fair value is estimated based on quoted market prices at year -end. All investments not required to be reported at fair value are stated at cost or amortized cost. Prepaids Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements. Bank Escrow Deposit An escrow agreement was formed between the District and the National Park Service for the Right of Way through the John Muir National Historic Site, in lieu of issuing a performance bond. The current Right of Way Permit is 10 years, but is renewable and must remain in effect so long as there is sewerage running through the area; therefore, it is unlikely that the escrow funds will ever be released to the District. These funds are listed as restricted cash in the financial statements. See note 2. Parts and Supplies Parts and supplies are valued at average cost and are used primarily for internal purposes. Property. Plant. and Eauinment Purchased capital assets are stated at historical cost. Capital assets contributed to the District are stated at estimated fair value at the time of contribution. The capitalization threshold for capital assets is $5,000. Expenditures which materially increase the value or life of capital assets are capitalized and depreciated over the remaining useful life of the asset. The term depreciation includes amortization of intangible assets. 14 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Depreciation of exhaustible capital assets has been provided using the straight -line method as follows: Years Sewage Collection Facilities 75 Intangible Assets 75 Sewage Treatment Plant and Pumping Plants 40 Buildings 50 Furniture and Equipment 5-15 Motor Vehicles 6-15 Defined Contribution Retirement Plans District employees may defer a portion of their compensation under a District sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination, retirement, death, or in an emergency as defined by the Plan. The District does not make contributions to the plan. The plan's 457 assets are held in trust for the exclusive benefit of the participants and are not included in the District's financial statements. The District also contributes to a money purchase plan created in accordance with Internal Revenue Code section 401(a). Contributions to the plan are made in accordance with a memorandum of understanding stating that in lieu of making payments to Social Security, the District contributes to the 401(a) Plan an amount equal to that which would have been contributed to Social Security on behalf of its employees as long as the District is not required to participate in Social Security. The assets are held in trust and are not recorded on the books of the District. The District contributed $1,478,038 to the plan during the year ended June 30, 2012. Reclassifications Certain items in the prior year financial statements have been reclassified to match their presentation in the current year financial statements. Property Taxes Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of Contra Costa levies, bills and collects property taxes for the District; all material amounts are collected by June 30. 15 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) General County taxes collected are the same as the amount levied since the County participates in California's alternative method of apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a mechanism for the county to advance the full amount of property tax and other levies to taxing agencies based on the tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon. Secured Property tax bills are mailed once a year, during the month of October on the current secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be made in two installments, and are due on November l and February 1. Delinquent accounts are assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are charged an additional 1 '/2 percent per month. Unsecured property tax is due on July 1 and becomes delinquent on August 31. The penalty percentage rates are the same as secured property tax. Compensated Absences The liability for vested vacation, compensatory time, and sick pay is recorded as an expense when earned. District employees have a vested interest in 100 percent of accrued vacation time and 85 percent of accrued sick time for employees hired before May 1, 1985. Employees hired after May 1, 1985 have a vested interest in up to 40 percent of their sick time, based upon length of employment with the District. In fiscal 2012, accrued compensated absences decreased from $5,132,067 to $3,710,580, or by $1,421,487. The current portion of the liability to be used within the next year was estimated by management to be approximately $375,000 at June 30, 2012. The change of $1,421,487 during fiscal 2012 consists of increases of $337,579 and decreases of $1,759,066. Statement of Cash Flows For purposes of the statement of cash flows, all highly liquid investments, including restricted assets, with maturities of three months or less when purchased, are considered to be cash equivalents. Included therein are petty cash, bank accounts, and the State of California Local Agency Investment Fund (LAIF). Restricted assets are debt service amounts maintained by fiduciaries and not available for general expenses. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 16 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements In December of 2009, GASB issued GASBS No. 57, OPEB Measurements by Agent Employers and Agent Multiple - Employer Plans. This Statement amends Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, to permit an agent employer that has an individual - employer, OPEB plan with fewer than 100 total plan members to use the alternative measurement method, at its option, regardless of the number of total plan members in the agent multiple - employer OPEB plan in which it participates. Consistent with this change to the employer- reporting requirements, this Statement also amends a Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, requirement that a defined benefit OPEB plan obtain an actuarial valuation. The amendment permits the requirement to be satisfied for an agent multiple - employer OPEB plan by reporting an aggregation of results of actuarial valuations of the individual - employer OPEB plans or measurements resulting from use of the alternative measurement method for individual - employer OPEB plans that are eligible. The District is required to implement the provisions of the Statement for the year ended June 30, 2012 (effective for periods beginning after June 15, 2011). This Statement will not result in a change in current practice, since the District does not use the alternative measurement method. In November of 2010, GASB issued GASBS No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements (SCAB), which are a type of public - private or public - public partnership. As used in this Statement, an SCA is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a "facility ") in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. The District is required to implement the provisions of this Statement for the year ended June 30, 2013 (effective for periods beginning after December 15, 2011). The District has no known SCAB that would require disclosure or have a material effect on the financial statements of the District. In November of 2010, GASB issued GASBS No. 61, The Financial Reporting Entity: Omnibus. This Statement amends Statements No. 14 and 34, to modify certain requirements for inclusion of component units in the financial reporting entity. For organizations that previously were required to be included as component units by meeting the fiscal dependency criterion, a financial benefit or burden relationship also would need to be present between the primary government and that organization for it to be included in the reporting entity as a component unit. Further, for organizations that do not meet the financial accountability criteria for inclusion as component units but that, nevertheless, should be included because the primary government's management determines that it would be misleading to exclude them, this Statement clarifies the manner in which that determination should be made and the types of relationships that generally should be considered in making the determination. 17 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements (continued) This Statement also amends the criteria for reporting component units as if they were part of the primary government (that is, blending) in certain circumstances and clarifies the reporting of equity interests in legally separate organizations. It requires a primary government to report its equity interest in a component unit as an asset. The District is required to implement the provisions of this Statement for the year ended June 30, 2013 (effective for periods beginning after June 15, 2012). This Statement will not result in a change in current practice, or have a material effect on the financial statements of the District. In December of 2010, GASB issued GASBS No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee on Accounting Procedure This Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, thereby eliminating the election provided in paragraph 7 of that Statement for enterprise funds and business -type activities to apply post- November 30, 1989 FASB Statements and Interpretations that do not conflict with or contradict GASB pronouncements. However, those entities can continue to apply, as other accounting literature, post- November 30, 1989 FASB pronouncements that do not conflict with or contradict GASB pronouncements, including this Statement. The District is required to implement the provisions of this Statement for the year ended June 30, 2013 (effective for periods beginning after December 15, 2011). This Statement will not result in a change in current practice, or have a material effect on the financial statements of the District. In June of 2011, GASB issued GASBS No. 63, Financial Reporting and Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4, Elements of Financial Statements, introduced and defined those elements as a consumption of net assets by the government that is applicable to a future reporting period, and an acquisition of net assets by the government that is applicable to a future reporting period, respectively. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. V. CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements (continued) Concepts Statement 4 also identifies net position as the residual of all other elements presented in a statement of financial position. This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial Statements —and Management's Discussion and Analysis for State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. The District is required to implement the provisions of this Statement for the year ended June 30, 2013 (effective for periods beginning after December 15, 2011). This Statement should not result in a change in current practice, or have a material effect on the financial statements of the District. In June of 2011, GASB issued GASBS No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions. This Statement amends Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. Some governments have entered into interest rate swap agreements and commodity swap agreements in which a swap counterparty, or the swap counterparty's credit support provider, commits or experiences either an act of default or a termination event as both are described in the swap agreement. Many of those governments have replaced their swap counterparty, or swap counterparty's credit support providers, either by amending existing swap agreements or by entering into new swap agreements. When these swap agreements have been reported as hedging instruments, questions have arisen regarding the application of the termination of hedge accounting provisions in Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. Those provisions require a government to cease hedge accounting upon the termination of the hedging derivative instrument, resulting in the immediate recognition of the deferred outflows of resources or deferred inflows of resources as a component of investment income. The objective of this Statement is to clarify whether an effective hedging relationship continues after the replacement of a swap counterparty or a swap counterparty's credit support provider. This Statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. The District is required to implement the provisions of this Statement for the year ended June 30, 2012 (effective for periods beginning after June 15, 2011). This Statement will not result in a change in current practice, or have a material effect on the financial statements of the District. 19 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements (continued) In March of 2012, GASB issued GASBS No. 65, Items Previously Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. The District is required to implement the provisions of this Statement for the year ended June 30, 2014 (effective for periods beginning after December 31, 2012). This Statement will not result in a change in current practice, or have a material effect on the financial statements of the District. In March of 2012, GASB issued GASBS No. 66, Technical Corrections — 2012 — an Amendment of GASB Statements No. 10 and No. 62. This Statement amends Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, by removing the provision that limits fund -based reporting of an entity's risk financing activities to the general fund and the internal service fund type. This Statement also amends Statement 62 by modifying the specific guidance on accounting for (1) operating lease payments that vary from a straight -line basis, (2) the difference between the initial investment (purchase price) and the principal amount of a purchased loan or group of loans, and (3) servicing fees related to mortgage loans that are sold when the stated service fee rate differs significantly from a current (normal) servicing fee rate. The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The District is required to implement the provisions of this Statement for the year ended June 30, 2014 (effective for periods beginning after December 31, 2012). This Statement will not result in a change in current practice, or have a material effect on the financial statements of the District. 20 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements (continued) In June of 2012, GASB issued GASBS No. 67, Financial Reporting for Pension Plans – an Amendment of GASB Statement No. 25. The objective of this Statement is to improve financial reporting by state and local governmental pension plans. This Statement and Statement 68 establish a definition of a pension plan that reflects the primary activities associated with the pension arrangement — determining pensions, accumulating and managing assets dedicated for pensions, and paying benefits to plan members as they come due. This Statement replaces the requirements of Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 50, Pension Disclosures, as they relate to pension plans that are administered through trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria relating to irrevocable contributions, dedicated plan assets, and protection of plan assets from creditors. The requirements of Statements 25 and 50 remain applicable to pension plans that are not administered through trusts covered by the scope of this Statement and to defined contribution plans that provide postemployment benefits other than pensions. For defined benefit pension plans, this Statement establishes standards of financial reporting for separately issued financial reports and specifies the required approach to measuring the pension liability of employers and nonemployer contributing entities for benefits provided through the pension plan (the net pension liability), about which information is required to be presented. Distinctions are made regarding the particular requirements depending upon the type of pension plan administered, including cost - sharing multi - employer pension plans, in which the District participates. Cost - sharing plans are those in which the pension obligations to the employees of more than one employer are pooled and plan assets can be used to pay the benefits of the employees of any employer that provides pensions through the pension plan. The requirements of this Statement will improve financial reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by the pension plans. The new information will enhance the decision - usefulness of the financial reports of these pension plans, their value for assessing accountability, and their transparency by providing information about measures of net pension liabilities and explanations of how and why those liabilities changed from year to year. The net pension liability information will offer an up -to -date indication of the extent to which the total pension liability is covered by the fiduciary net position of the pension plan. The contribution schedule will provide measures to evaluate decisions related to the assessment of contribution rates in comparison to actuarially determined rates. In that circumstance, it also will provide information about whether employers and nonemployer contributing entities are keeping pace with actuarially determined contribution measures. In addition, new information about rates of return on pension plan investments will inform financial report users about the effects of market conditions on the pension plan's assets over time and provide information for users to assess the relative success of the pension plan's investment strategy and the relative contribution that investment earnings provide to the pension plan's ability to pay benefits to plan members when they come due. The District is required to implement to provisions of this Statement for the year ended June 30, 2014 (effective for periods beginning after June 15, 2013). 21 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements (continued) This Statement will result in a change in current practice, but will most likely not have a material effect on the financial statements of the District. In June of 2012, GASB issued GASBS No. 68, Financial Reporting for Pension Plans – an Amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans administered as trusts that meet certain criteria relating to irrevocable contributions, dedicated plan assets, and protection of plan assets from creditors. The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this Statement. Note disclosure and required supplementary information requirements about pensions also are addressed. Distinctions are made regarding the particular requirements for employers based on the number of employers whose employees are provided with pensions through the pension plan and whether pension obligations and pension plan assets are shared. Employers are classified into categories. Cost - sharing employers, such as the District, are those whose employees are provided with defined benefit pensions through cost - sharing multiple - employer pension plans. Cost - sharing plans are pension plans in which the pension obligations to the employees of more than one employer are pooled and plan assets can be used to pay the benefits of the employees of any employer that provides pensions through the pension plan. Cost - sharing employers In financial statements prepared using the economic resources measurement focus and accrual basis of accounting, a cost - sharing employer that does not have a special funding situation is required to recognize a liability for its proportionate share of the net pension liability (of all employers for benefits provided through the pension plan) —the collective net pension liability. An employer's proportion is required to be determined on a basis that is consistent with the manner in which contributions to the pension plan are determined, and consideration should be given to separate rates, if any, related to separate portions of the collective net pension liability. 22 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncements (continued) In addition, the effects of (1) a change in the employer's proportion of the collective net pension liability and (2) differences during the measurement period between the employer's contributions and its proportionate share of the total of contributions from employers included in the collective net pension liability are required to be determined. These effects are required to be recognized in the employer's pension expense in a systematic and rational manner over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan (active employees and inactive employees). The portions of the effects not recognized in the employer's pension expense are required to be reported as deferred outflows of resources or deferred inflows of resources related to pensions. Employer contributions to the pension plan subsequent to the measurement date of the collective net pension liability also are required to be reported as deferred outflows of resources related to pensions. A cost - sharing employer is required to recognize pension expense and report deferred outflows of resources and deferred inflows of resources related to pensions for its proportionate shares of collective pension expense and collective deferred outflows of resources and deferred inflows of resources related to pensions. This Statement requires that notes to financial statements of cost - sharing employers include descriptive information about the pension plans through which the pensions are provided. Cost - sharing employers should identify the discount rate and assumptions made in the measurement of their proportionate shares of net pension liabilities. Cost - sharing employers also should disclose information about how their contributions to the pension plan are determined. This Statement requires cost - sharing employers to present in required supplementary information 10 -year schedules containing (1) the net pension liability and certain related ratios and (2) information about required contributions, contributions to the pension plan, and related ratios. The District is required to implement provisions of this Statement for the year ended June 30, 2015 (effective for periods beginning after June 15, 2014). This Statement will result in a change in current practice, and may have a material effect on the financial statements of the District. 23 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 2. CASH AND CASH EQUIVALENTS Summary of Cash and Investments Investments as of June 30 are classified in the accompanying financial statements as follows: Cash and cash equivalents Short term investments Restricted cash and investments $ 42,428,045 16,496,087 5,512,500 Total Cash and Investments $ 64,436,632 * Includes $100,000 bank escrow deposit- see note 1. Policies and Practices The District is authorized under California Government Code to make direct investments in local agency bonds, notes, or warrants within the State; U.S. Treasury instruments; registered State warrants or treasury notes; securities of the U.S. Government, or its agencies; commercial paper; certificates of deposit placed with commercial banks and/or savings and loan companies; and certificates of participation. State code and the District's investment policy prohibit the District from investing in investments with a rating of less than A or equivalent. District policy limits investments in commercial paper to prime quality with corporate assets over $500,000,000. General Authorizations Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are indicated in the schedules below: Authorized Investment Type U.S. Treasury Obligations Banker's Acceptance Commercial Paper (1) Collateralized Certificates of Deposit (2) County Pooled Investment Funds Local Agency Investment Fund (LAIF) California State Limits Maximum Maximum Remaining Percentage Maturity of Portfolio 5 years 180 270 5 years N/A N/A District Policy Maximum Maximum Investment Percentage In One Issuer of Portfolio None None 100% 40% 40% 10% 25% 10% 10% 30% None 10% None None 100% None None 100% (1) Prime quality; limited to corporations with assets over $500,000,000 (2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year 24 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 2. CASH AND CASH EQUIVALENTS (continued) Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment; generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. It is the District's policy to manage exposure to interest rate risk by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. District policy is that investment maturities do not exceed one year, with the exception of Treasury Notes or Local Agency Investment Fund; however, investments can be held longer with Board approval. The District's investments at year end with the exception of the U.S Treasuries and Commercial Paper below are held in external investment pools which are liquid investments. Information about the sensitivity of the fair values of the District's investments to market interest rate fluctuation is provided by the following schedule that shows the distribution of the District's investment by maturity: Investment Tyne Certificates of Deposit Commercial Paper Certificates of Deposit Commercial Paper Total Credit Risk Fair Value Maturily $ 5,001,098 08/01/12 2,994,207 10/17/12 3,998,672 12/17/12 4,502,110 9/21/12 $ 16,496,087 Aaa Credit risk is the risk that an issue of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the District's investment policy, and the actual rating as of the year -end for each investment type. Minimum Total 64.436.632 25 Not Fair Legal Investment Type Value Rating Cash $ 1,558,558 N/A Money Markets 5,381,987 Aaa Commercial Paper /CDs 16,496,087 Aaa State Investment Pool 41.000.000 N/A Total 64.436.632 25 Not Required Rating at Year -End To Be Rated Aaa Unrated $ 1,558,558 $ - $ - - 5,381,987 - - 16,496,087 - - - 41.000,000 1.558.558 21.878.074 S 41.000.000 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 2. CASH AND CASH EOUIVALENTS (continued) Concentration of Credit Risk The investment policy of the District contains the limitation that no more that 10% of the District's investment portfolio will be invested in a single issuer. During the current fiscal year the District invested 64% of its monies in the State Investment Pool (LAIF) which is not limited by the California Government Code or District Investment Policy. Investments in County Treasury — The District is considered to be a voluntary participant in an external investment pool. The fair value of the District's investment in the pool is reported in the accounting financial statements at amounts based upon the District's pro -rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer, which is recorded on the amortized cost basis. Investment in the State Investment Pool — The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California government code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the District's investment in the pool is reported in the accompanying financial statement at amounts based upon the District's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded on the amortized cost basis. Custodial Credit Risk — Investments Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g. the broker - dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code does not contain legal or policy requirements that would limit the exposure to custodial credit risk. The District's policy is to use the services of the Treasurer's Office of the County of Contra Costa, which will transact the District's investment decisions in compliance with the requirements of the District's policy. The County Treasurer's Office will execute the District's investments through such broker - dealers and financial institutions as are approved by the County Treasurer, and through the State Treasurer's Office for investment in the Local Agency Investment Fund. 26 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 3. ACCOUNTS RECEIVABLE At June 30, 2012, accounts receivable are comprised of the following: City of Concord (see Note 8) $ 13,189,077 Household Hazardous Waste Partners 766,204 Proposition IA loan 985,916 Permit counter 214,490 All other 849,611 Total Accounts Receivable 16,005,298 Allowance for Doubtful Accounts (985,916) Net Accounts Receivable $ 15,019.382 Proposition 1 A Loan Receivable Under the provisions of Proposition IA, and as part of the 2009 -10 budget package passed by the California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of property tax revenue, including those property taxes associated with the supplemental property tax apportioned to special districts. The state is required to repay this borrowing, plus interest, by June 30, 2013. After repayment of this initial borrowing, the California legislature may consider only one additional borrowing within a ten -year period. The amount of this borrowing pertaining to the District was $ 985,916. The borrowing by the State of California was recognized as a receivable in the accompanying financial statements, with an equal amount set up as an allowance for doubtful accounts. In the Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets, the tax revenues were recognized in the fiscal year for which they were levied (fiscal year 2010). Due to the economic climate, and the ongoing budget difficulties of the State of California, District management decided to reserve the entire Proposition IA loan of $985,916 in fiscal year 2010. This amount is tracked as a loan receivable on the books, with a corresponding contra account on the Statement of Net Assets, which effectively eliminates the receivable. 27 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 4. LAND, PROPERTY, PLANT AND EQUIPMENT. AND CONSTRUCTION IN PROGRESS Property, plant and equipment, and construction in progress are summarized below for the year ended June 30, 2012: Total accumulated depreciation Total capital assets being depreciated, net Capital assets, net 301,140,207 553,714,929 $ 593,461,791 21,190,059 (20,559,292) $ 4,228,042 28 (1,164,129) - 321,166,137 (89) 24,949,782 558,105,330 $ (89) $ - $ 597,689,744 Balance Beginning Transfer Balance of Year Additions Retirements from CIP End of Year At Cost Capital assets not being depreciated Land $ 17,114,720 $ - $ - $ - $ 17,114,720 Construction in progress 22,632,142 24,787,334 - (24,949,782) 22,469,694 Total nondepreciated assets 39,746,862 24,787,334 - (24,949,782) 39,584,414 Capital assets being depreciated Sewage collection system 290,317,724 - - 13,375,795 303,693,519 Contributed sewer lines 149,110,351 630,767 (7,060) 161,244 149,895,302 Outfall sewers 8,518,443 - - - 8,518,443 Sewage treatment plant 287,537,513 - (1,100,000) 5,995,370 292,432,883 Recycled water infrastructure 12,300,131 - - 1,035,164 13,335,295 Pumping stations 54,412,730 - - - 54,412,730 Buildings 31,317,466 - - 3,159,658 34,477,124 Intangibles 2,058,921 - - 404,913 2,463,834 Furniture and equipment 13,243,330 - (26,120) 814,354 14,031,564 Motor vehicles 6,038,527 - (31,038) 3,284 6,010,773 Total depreciated assets 854,855,136 630,767 (1,164,218) 24,949,782 879,271,467 Less accumulated depreciation Sewage collection system 44,948,296 4,007,175 - - 48,955,471 Contributed sewer lines 47,111,102 2,005,303 (7,060) - 49,109,345 Outfall sewers 2,766,972 113,353 - - 2,880,325 Sewage treatment plant 161,800,408 10,003,134 (1,100,000) - 170,703,542 Recycled water infrastructure 4,848,535 513,851 - - 5,362,386 Pumping stations 19,991,305 2,176,437 - - 22,167,742 Buildings 6,031,677 988,057 - - 7,019,734 Intangibles 58,095 30,152 - - 88,247 Furniture and equipment 9,775,349 1,069,343 (26,031) - 10,818,661 Motor vehicles 3,808,468 283,254 (31,038) - 4,060,684 Total accumulated depreciation Total capital assets being depreciated, net Capital assets, net 301,140,207 553,714,929 $ 593,461,791 21,190,059 (20,559,292) $ 4,228,042 28 (1,164,129) - 321,166,137 (89) 24,949,782 558,105,330 $ (89) $ - $ 597,689,744 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 5. ASSESSMENT DISTRICTS The District established the Contractual Assessment District (CAD) program to help homeowners finance the cost of connecting to the District. The construction costs associated with the project within the program are capitalized and depreciated. Individual homeowners are assessed an amount equal to their share of the construction costs and connection fee. The assessments plus interest are generally payable over 10 years. At year -end, the CAD receivable balance was $519,426. The District also established the Alhambra Valley Assessment District (AVAD) to provide services to residents in the Alhambra Valley in Martinez. Residents have the choice to pay cash or finance the construction costs and connection fees. At year -end the AVAD receivable balance was $1,701,904. The total receivable balance for the CAD and AVAD is $2,221,330, and is shown as a non - current asset on the Statement of Net Position. 6. LONG -TERM DEBT 2009 Wastewater Revenue Certificates of Participation On November 12, 2009 and December 3, 2009 the District issued two Certificates of Participation (COP). The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B were issued for $19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build America Bonds" which have a direct 35% interest rate subsidy from the Federal Government. Yields on this series range from 3.45% to 3.78% net of the subsidy. The Series B COP are tax exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30 million in new proceeds with yields ranging from .4% to 3.79 %. The two bonds total $54,125,000, and are secured by a pledge of revenue. Principal payments begin annually on September 1, 2010 with semi- annual payments due on September 1 and March 1 of each year. Both bonds will be fully amortized as of September 1, 2029. The refunded portion of the original bonds will be paid off based on the original amortization schedule. Summary The changes in the District's long -term obligations during the year consisted of the following: Balance Balance Due in July 1, 2011 Deductions Additions June 30, 2012 One Year Revenue bonds $ 50,665,000 $ 3,465,000 $ - $ 47,200,000 $ 3,605,000 Water Reclamation Loan 1,183,583 156,345 - 1,027,238 160,411 51.848.583 3.621.345 $ - $ 48.227.238 3.765.411 29 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 6. LONG -TERM DEBT (continued) Debt Service Requirements In 2009, the District issued Certificates of Participation (COP), which retired the 2002 and 1998 debt. The 2009 Revenue COP debt service requirements are as follows: Ending June 30, Requirements 2013 Series A Series B 187,119 Series A 187,119 Fiscal Year Debt Service Debt Service Gross 35% Tax Net Ending June 30, Requirement Requirement Total Subsidy Total 2013 1,190,840 4,586,625 5,777,465 (416,794) 5,360,671 2014 1,190,840 4,571,683 5,762,523 (416,794) 5,345,729 2015 1,190,840 4,565,467 5,756,307 (416,794) 5,339,513 2016 1,190,840 2,811,033 4,001,873 (416,794) 3,585,079 2017 1,190,840 2,801,300 3,992,140 (416,794) 3,575,346 2018-2022 9,064,808 10,870,037 19,934,845 (2,001,820) 17,933,025 2023 -2027 12,995,263 2,478,751 15,474,014 (1,239,282) 14,234,732 2028— 2030 7,161,643 73,230 7,234,873 (183,706) 7,051,167 Total 35,175,914 32,758,126 67,934,040 (5,508,778) 62,425,262 Amount representing interest (15,540,914) (5,193,126) (20,734,040) - (20,734,040) Principal outstanding 19,635,000 27,565,000 47,200,000 (5,508,778) 41,691,222 Short-term portion of revenue bonds - (3,605,000) (3,605,000) 416,794 (3,188,206) Long -term portion of revenue bonds $ 19,635,000 $ 23,960,000 $ 43,595,000 $(5,091,984) $ 38,503,016 Water Reclamation Loan Contract The District has entered into a contract with the State of California State Water Resources Control Board (the Board), which advanced the District $2,916,872 for design and construction costs for projects related to recycled water treatment programs. The District must repay advances from the Board over a 20 -year period beginning March 31, 1999, with an interest rate of 2.60 %. Debt service requirements are as follows: Fiscal Year Debt Service Ending June 30, Requirements 2013 $ 187,119 2014 187,119 2015 187,119 2016 187,119 2017 187,120 2018 187,120 Total 1,122,716 Amount representing interest (95,478) 1,027,238 Less: Current portion of Water Reclamation Loan Contract (160,411) Long term portion of Water Reclamation Loan Contract $ 866,827 30 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 7. RISK MANAGEMENT The District is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disaster. The District joined with other entities to form the California Sanitation Risk Management Authority ( CSRMA), a public entity risk pool currently operating as a common risk management and insurance program for the member entities. The purpose of CSRMA is to spread the adverse effects of losses among the member entities and to purchase excess insurance as a group, thereby reducing its cost. Through CSRMA, the District purchases property insurance and workers' compensation insurance. Insurance Coverage The District's insurance coverage is as follows: Insurance Company of the State of Self Insured $ 15,000,000 $ 1,000,000 Deductible Per Type of Insurance Coverage Insurer Limits Occurrence All -Risk Property Admiral Insurance Company $ 1,000,000 Fire Public Entity Property Insurance Chartis $ 15,000,000 Program ( PEPIP) $533,523,156 $ 250,000 Boiler & Machinery PEPIP $ 1,000,000 Pollution (General Aggregate) (Shared Limits per Occurrence) $ $100,000,000 $ 250,000 Crime Travelers $ 1,000,000 $ 25,000 Liability Errors and Omissions Insurance Company of the State of Pennsylvania (Chartis) $ 15,000,000 $ 1,000,000 Employment Practices Liability Chartis $ 15,000,000 $ 1,000,000 Employment Practices Liability Admiral Insurance Company $ 1,000,000 $ 15,000 General Liability Chartis $ 15,000,000 $ 1,000,000 Auto Liability Chartis $ 15,000,000 $ 1,000,000 Pollution (General Aggregate) Chartis Specialty Insurance Co. $ 5,000,000 $ 5,000 General Liability (Occurrence) Pollution (Legal Liability Chartis Specialty Insurance Co. Aggregate) $ 10,000,000 $ 50,000 Fiduciary Liability RLI Insurance Company $ 1,000,000 - Workers' Compensation CSRMA $ 750,000 - Excess Workers' Compensation Safety National Casualty Corporation Statutory $ 750,000 Liability for Uninsured Claims The Governmental Accounting Standards Board (GASB) requires state and local governments to record their liability for uninsured claims in their financial statements. The District's uninsured claims activity and exposure relates primarily to its general and automobile liability program. The District records its estimated liability for uninsured claims in this area based on the results of periodic actuarial evaluations. The actuarial evaluations are typically performed every two years. For intervening years, the liability for uninsured claims is reviewed for adequacy based on claims activity during the intervening period. 31 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 7. RISK MANAGEMENT (continued) For the fiscal years ended June 30, 2012, 2011, and 2010, settlements have not exceeded insurance coverage. Changes in the District's estimated liability for uninsured claims for fiscal years 2012, 2011, and 2010 are summarized as follows: Beginning balance Provisions for claims incurred in the current year and changes in the liability for uninsured — claims incurred in prior years Claims and claim adjustment expenses paid Ending balance 8. AGREEMENT WITH THE CITY OF CONCORD 2012 2011 2010 $1,000,000 $1,000,000 $ 750,000 72,606 240,844 295,348 (72,606) (240,844) (45,348) $1,000,000 $1,000,000 $1,000,000 In 1974, the District and the City of Concord (the City) entered into a cost - sharing agreement under which the District became responsible for providing sewage treatment facilities and services to the City. Under this agreement, the City pays a service charge for its share of operating, maintenance and administrative costs and makes a contribution for its share of facilities capital costs expended. Service charges and contributions to capital costs from the City totaled $10,647,389 and $2,541,688 respectively, for the year ended June 30, 2012, for a total of $13,189,077. 9. PENSION PLAN Plan Description Substantially all District full -time employees are required to participate in the Contra Costa County Employees' Retirement Association (CCCERA), a cost - sharing multiple- employer public employee defined benefit retirement plan (Plan), governed by the County Employee's Retirement Law of 1937, as amended. The latest available actuarial and financial information for the Plan is for the year ended December 31, 2011. The Contra Costa Employees' Retirement Association issues a publicly available financial report that includes financial statements and supplemental information of the Plan. That report is available by writing to Contra Costa County Employees' Retirement Association, 1355 Willow Way, Suite 221, Concord, CA 94520 -5728 or by calling (925) 521 -3960. The Plan provides for retirement, disability, and death and survivor benefits. Annual cost of living (COL) adjustments to retirement allowances can be granted by the Retirement Board as provided by State statutes. Retirement benefits are based on age, length of service and final average salary. Subject to vested status, employees can withdraw contributions plus interest credited, or leave them as a deferred retirement when they terminate, or transfer to a reciprocal retirement system. 32 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 9. PENSION PLAN (continued) Plan Contribution Requirement The Plan requires employees to pay a portion of the basic retirement benefit and a portion of future COL costs. However, the District has paid the employee's basic contributions in accordance with the Memorandum of Understanding (MOU). Employees must pay the COL portion of the employee rate. The contribution requirement and payment from the District for the plan years ended June 30, 2012, 2011 and 2010 was as follows: 2012 2011 2010 Covered payroll for fiscal years ended June 30 $ 24,305,548 $ 24,709,477 $ 25,080,233 Employer required contributions to pension 10,961,853 8,950,938 8,804,127 Employee (COL) required contributions to pension 922,520 930,648 939,388 Total required contributions $ 11,884,373 $ 9,881,586 $ 9,743,515 Percentage of payroll 49% 40% 39% The District pension plan covered 231 participants during the year. The CCCERA Board took a depooling action in October 2009 which yielded 12 separate cost groups by employer, with the exception of smaller employers (those with less than 50 active members) who continue to be pooled with the applicable county tier. The depooling action affected employer rates effective July 1, 2011. 10. POST EMPLOYMENT HEALTH CARE BENEFITS Plan Description The District's defined benefit post employment healthcare plan, (DPHP), provides medical benefits to eligible retired District employees and beneficiaries. DPHP is part of the Public Agency portion of the Public Agency Retirement System (PARS), an agent multiple - employer plan administered by PARS, which acts as a common investment and administrative agent for participating public employees within the State of California. A menu of benefit provisions as well as other requirements is established by the State statute with the Public Employees' Retirement Law. DPHP selects optional benefit provisions from the benefit menu by contract with PARS and adopts those benefits through District resolution. PARS issues a separate Comprehensive Annual Financial Report. Copies of the PARS annual financial report may be obtained from PARS, 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660; by calling 1(800) 540 -6369; or by emailing info @pars.org. 33 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 10. POST EMPLOYMENT HEALTH CARE BENEFITS (continued) Funding Policy Statement No. 45 sets rules for computing the employer's expense for retiree benefits other than pension, called OPEBs. The expense, called the annual OPEB Cost (AOC), is determined similarly to pensions. The annual required contribution (ARC) of the employer, represents a level of funding that, if paid on an ongoing basis, is projected to cover normal annual costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. When an agency contributes more than the ARC, there is a net OPEB asset; when the contribution is less, a net OPEB obligation results. There is a net OPEB asset of $1,263,542 and $916,736 as of June 30, 2012 and 2011, respectively. Because of the volatility of the investment market, the District Board voted to make monthly installments into the OPEB Trust to take advantage of dollar- cost - averaging. Annual OPEB Cost For 2012, the District's annual OPEB cost (expense) was equal to the ARC of $8,300,000. The District contributed $8,646,806; $4,139,606 for retiree health care premiums and $4,507,200 to the PARS trust. The following table shows the components of the District's annual OPEB costs for the years 2012 and 2011, the amount actually contributed to the plan, and changes in the District's net OPEB obligation: Annual Required Contribution (ARC) Interest on net OPEB obligation (asset) Adjustment to annual required contribution Annual OPEB cost (AOC) Contributions Made: 2012 2011 $ 8,300,000 $6,976,364 8,300,000 6,976,364 Health care premiums paid (4,139,606) (3,571,141) Contributions to PARS trust (4,507,200) (3,575,028) Increase (decrease) in net OPEB obligation (346,806) (169,805) Net OPEB Obligation (Asset) — Beginning of Year (916,736) (746,931) Net OPEB Obligation (Asset) — End of Year $ (1,263,542) $ (916,736) The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the OPEB obligation for 2012 and the preceding years are presented below: Annual Current OPEB Annual Percentage Year AOC Net OPEB Cost Employer of AOC Obligation Obligation Fiscal Year (AOC) Contribution Contributed (Asset) (Asset) June 30, 2012 $8,300,000 $ 8,646,806 104 % $ (346,806) $ (1,263,542) June 30, 2011 $69976,364 $ 7,146,169 102% $ (169,805) $ (916,736) June 30, 2010 $6,976,364 $ 9,334,917 134% $(2,358,553) $ (746,931) 34 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 10. POST EMPLOYMENT HEALTH CARE BENEFITS (continued) Funding Status and Funding Progress The funded status of the plan as of July 1, 2010 was as follows: Overfunded Per PARS, actuarial assets as of June 30, 2012, including trust contributions and interest, total $22,718,524 ($18,077,303 at June 30, 2011.). Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. The funded status of the plan and the annual required contributions of the employer are subject to continual revision, as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information, presents multiyear trend information that shows whether the actuarial value of the plan assets is increasing or decreasing over time, relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions Projections for benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation as well as the historical pattern of sharing benefit costs between the employer and plan members. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value of assets, consistent with the long -term perspective of the calculations. In August 2011, the District had an additional actuarial valuation prepared as of July 1, 2010. This additional valuation was not required at the time, but was prepared in order to begin a completion schedule that allows the District to have data available for future budget cycles, in this case for the 2011 — 2012 and 2012 — 2013 fiscal years. The ARC in 2011 — 2012 and 2012 — 2013 increased to $8.3 million per year. The next actuarial valuation is scheduled to be performed by December 31, 2012 to be applied to the 2013 — 2014 fiscal year. 35 Cost Method (Underfunded) Actuarial Actuarial Actuarial UAAL as Actuarial. Valuation Accrued Accrued Funding Covered Payroll a % of Valuation of Assets Liability Liability Ratio (Active Plan Covered Date (A) (B) (A -B) UAAL (A/B) Members) Payroll June 30, 2010 $ 9,404,000 $ 90,337,000 $ (80,933,000) 10.41% $ 25,080,233 323% June 30, 2009 $ 2,341,251 $ 68,769,305 $ (66,428,054) 3.40% $ 25,080,233 265% June 30, 2007 $ 2,341,251 $ 68,447,956 $ (66,106,705) 3.42% $ 22,648,230 292% Per PARS, actuarial assets as of June 30, 2012, including trust contributions and interest, total $22,718,524 ($18,077,303 at June 30, 2011.). Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. The funded status of the plan and the annual required contributions of the employer are subject to continual revision, as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information, presents multiyear trend information that shows whether the actuarial value of the plan assets is increasing or decreasing over time, relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions Projections for benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation as well as the historical pattern of sharing benefit costs between the employer and plan members. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value of assets, consistent with the long -term perspective of the calculations. In August 2011, the District had an additional actuarial valuation prepared as of July 1, 2010. This additional valuation was not required at the time, but was prepared in order to begin a completion schedule that allows the District to have data available for future budget cycles, in this case for the 2011 — 2012 and 2012 — 2013 fiscal years. The ARC in 2011 — 2012 and 2012 — 2013 increased to $8.3 million per year. The next actuarial valuation is scheduled to be performed by December 31, 2012 to be applied to the 2013 — 2014 fiscal year. 35 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 10. POST EMPLOYMENT HEALTH CARE BENEFITS (continued) The following is a summary of the actuarial assumptions and methods: Valuation Date Actuarial Cost Method Amortization Method Average Remaining Period Actuarial Assumptions: Investment Rate of Return Inflation Financial Statements July 1, 2010 Entry Age Normal Cost Method Level Dollar /Closed 28 Years fixed 6.5% Medical — 10% grading to 5% in 2021 — 22 Medicare Part B — same as medical trend Dental — 4% The District has deposited monies to the PARS trust in excess of the actuarial determined annual required contribution (ARC), therefore, under the provisions of GASB 45, the District has an OPEB asset of $1,263,542 for reporting purposes. The provision for the GASB 45 OPEB obligation is an asset of $1,263,542 at June 30, 2012. The actuarial determined liability, which is being paid over the next 30 years, is $80,933,000 at July 1, 2010, of which, $22,718,524 (or 28 %) has been funded. 11. LEASE COMMITMENTS The District leases various facilities and equipment under operating leases. Following is a summary of operating lease commitments as of June 30, 2012: Fiscal Year Office Ending Equipment Facilities Total 2013 $ 249,924 $ 56,784 $ 306,708 2014 249,924 58,416 308,340 2015 249,924 60,096 310,020 2016 249,924 61,827 311,751 2017 - 63,610 63,610 Thereafter - 33,922 33,922 Total $ 999,696 $ 334,655 $ 1,334,351 Total rental expense for the fiscal year ended June 30, 2012 was $349,655. 36 CENTRAL CONTRA COSTA SANITARY DISTRICT Notes to Financial Statements Year Ended June 30, 2012 12. COMMITMENTS AND CONTINGENCIES Commitments and contingencies, undeterminable in amount, include normal recurring pending claims and litigation. In the opinion of management, based upon discussion with legal counsel, there is no pending litigation which is likely to have a material adverse effect on the financial position of the District. Claims and losses are recorded when they are reasonably probable of being incurred and the amount is estimable. Insurance proceeds and settlements are recorded when received. The District has purchase commitments relating to construction projects at June 30, 2012 of $12,941,372. 13. SUBSEQUENT EVENTS Management has evaluated subsequent events through October 4, 2012, the date on which the financial statements were available to be issued. 37 This page intentionally left blank S UPPLEMENTAR Y INFORMA TION CENTRAL CONTRA COSTA SANITARY DISTRICT Combining Schedule of Net Position for the Year Ended June 30, 2012 Noncurrent Assets Running Sewer Self Debt Expense Construction Insurance Service Elimination Total ASSETS 193,592 Restricted investments - - Current Assets - 5,318,908 Land, property, plant and equipment, net 575,220,050 - Cash and cash equivalents $ 797,055 $ 37,114,879 $ 4,546,624 $ (30,513) $ - $ 42,428,045 Short term investments - 16,496,087 - - - 16,496,087 Accounts receivable, net of allowance for Sewer Construction Fund of $985,916 12,076,614 2,942,768 - - - 15,019,382 Interest receivable - 45,782 4,068 5,298 - 55,148 Due from other sub -funds 147,719,332 120,975,602 1,063,668 53,008,745 (322,767,347) - Parts and supplies 2,007,445 - - - - 2,007,445 Prepaid expenses 2,500,705 - - - - 2,500,705 Total Current Assets 165,101,151 177,575,118 5,614,360 52,983,530 (322,767,347) 78,506,812 Noncurrent Assets Restricted cash and equivalents 100,000 - - 93,592 - 193,592 Restricted investments - - 5,318,908 - 5,318,908 Land, property, plant and equipment, net 575,220,050 - - - 575,220,050 Construction in progress 22,469,694 - - - - 22,469,694 Contractual assessment district and Alhambra Valley Assessment District receivable - 2,221,330 - - 2,221,330 OPEB liability- medical insurance premiums 1,263,542 - - - - 1,263,542 Revenue bond issuance costs net of amortization - - 334,992 - 334,992 7645154,437 179,796,448 5,614,360 58,731,022 (322,767,347) 685,528,920 LIABILITIES Current Liabilities Accounts payable and accrued expenses 3,066,490 1,670,117 168,037 - - 4,904,644 Due to other sub -funds 161,650,119 150,748,651 618,990 9,749,587 (322,767,347) - Interest payable - - - 754,197 - 754,197 Current portion of refunding water revenue bonds - - 3,605,000 - 3,605,000 Current portion of water reclamation loan contract - 160,411 - 160,411 Accrued compensated absences 375,000 - - - 375,000 Liability for uninsured claims - - 1,000,000 - - 1,000,000 Refundable deposits 189,018 140,270 - - - 329,288 Total Current Liabilities 165,280,627 152,559,038 1,787,027 14,269,195 (322,767,347) 11,128,540 NONCURRENT LIABILITIES Revenue bonds, net of current portion - - - 43,595,000 - 43,595,000 Accrued compensated absences 3,335,580 - - - - 3,335,580 Water reclamation loan contract net of current portion - - - 866,827 - 866,827 Total Liabilities 168,616,207 152,559,038 1,787,027 58,731,022 (322,767,347) 58,925,947 NET POSITION Net investment in capital assets 597,689,744 - - (48,227,238) - 549,462,506 Restricted for debt service - - - 4,663,601 - 4,663,601 Unrestricted (2,151,514) 27,237,410 3,827,333 43,563,637 - 72,476,866 Total Net Position $ 595,538,230 $ 27,237,410 $ 3,827,333 $ - $ - $ 626,602,973 The accompanying notes are an integral part of the financial statements 38 CENTRAL CONTRA COSTA SANITARY DISTRICT Combining Schedule of Revenues, Expenses and Changes in Net Position for the Year Ended June 30, 2012 Running Sewer Self Expense Construction Insurance Operating Revenues Debt Service Elimination Total Sewer Service Charges (SSC) $ 49,123,848 $ - $ - $ - $ $ 49,123,848 Service charges - City of Concord 10,647,389 - - - - 10,647,389 Other service charges 915,485 - - - - 915,485 Miscellaneous charges 929,917 - - - - 929,917 Total operating revenues 61,616,639 - - - 61,616,639 Operating Expenses Sewage collection and pumping stations 11,987,373 - - - - 11,987,373 Sewage treatment 23,708,309 - - - 23,708,309 Engineering 8,023,226 - - - - 8,023,226 Administrative and general 20,631,967 - 81.0,849 - (876,537) 20,566,279 Depreciation 21,190,059 - - - - 21,190,059 Total operating expenses 85,540,934 - 810,849 - (876,537) 85,475,246 Operating Loss (23,924,295) - (810,849) - 876,537 (23,858,607) Non - Operating Revenues (Expenses): Taxes - 6,367,268 - 5,679,901 - 12,047,169 Permit and inspection fees 801,017 102,793 - - - 903,810 Interest earnings 182,114 232,568 19,436 (139,180) - 294,938 Interest expense - - - (1,919,375) - (1,919,375) Other income (expense) 538,757 392,903 876,537 - (876,537) 931,660 Total non - operating revenues (expenses) 1,521,888 7,095,532 895,973 3,621,346 (876,537) 12,258,202 Income (loss) before contributions and transfers (22,402,407) 7,095,532 85,124 3,621,346 - (11,600,405) City of Concord contributions to capital costs - 2,541,688 - - - 2,541,688 Customer contributions to capital cost (SSC) - 6,346,975 - - 6,346,975 Contributed sewer lines 792,011 - - - - 792,011 Capital contributions - connection fees - 5,724,833 - - - 5,724,833 Transfers 24,787,334 (21,165,988) (3,621,346) - - Change in Net Position 3,176,938 543,040 85,124 - - 3,805,102 Net Position - Beginning 592,361,292 26,694,370 3,742,209 - - 622,797,871 Net Position - Ending $ 595,538,230 $ 27,237,410 $ 3,827,333 $ - $ - $ 626,602,973 The accompanying notes are an integral part of the financial statements 39 �i i. A H � vim. y P! �L W � •� � N � � M O � � r.7 � PC u pq 4. O C O ..r i. C� U �c IC h M W)� �O ' N h y N v) v) N � 01 W) M v') M w v) N 00 O N N �O C�, [z kr r z I� " kr lz O� cccCddd fCZ, • O 9 C14 N O h O — h I- ON O M 00 000 cq 69 6R (7s ON C� C\ h O O O O O V) O 00 O O O IC v) ,O O V• O — �O O llC tl N �O h tl O M h 00 N N 00 00 O h O N O 110 00 h h M h t N 00 � _h N W) r- I", t-� N r N N r N') to O h O� O� 00 00 V) ai "T M h N N It �O 6R 69 h 00 to (D M 1, V -T h V) — W) h --t M N V O M 0� 00 O O C� h �O O M V V M O lO .--I C� o0 00 N .-. .-ti + .-. 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N Q 69 w as b C > O b 0 00 Cd 'o a1 •� w 'v 'ti � � � a .� on CA a CENTRAL CONTRA COSTA SANITARY DISTRICT Running Expense Schedule of Supplemental Net Position Analysis June 30, 2012 Prior Year Balance 2011 -2012 Revenue 2012 - 2012 Expense Add Back Depreciation Expense Net Position Attributed to General Operations Net Position Attributed to All Other Running Expense Net Position $ 9,918,758 $ 63,138,527 (85,540,934) 21,190,059 (1,212,348) 8,706,410 586,831,820 $ 595,538,230 The accompanying notes are an integral part of the financial statements 41 Central Contra Costa Sanitary District Conflict of Interest Code — Page 2 of 4 11/15/2012 Disqualification Employees in positions designated below shall disqualify themselves from making or participating in the making of any governmental decision when it is reasonably foreseeable that a financial interest of the employee may be materially affected by the decision. The employee shall not be required to disqualify himself or herself with respect to any matter which could not be legally acted upon or decided without the employee's participation. Officials Who Manage Public Investments In accordance with Government Code Section 87200, positions designated to file statements of economic interests are those "directing the investment of public monies, formulating or approving investment policies, approving or establishing guidelines for asset allocations, or approving investment transactions." It has been determined that the positions listed below manage public investments and will file a statement of economic interests and be disqualified from participation as described above: Disclosure Category 1. Member, Board of Directors 1 2. General Manager 1 3. Director of Administration 1 4. Director of Engineering 1 5. Finance Manager 1 Disclosure Statement and Designated Positions Each employee in the positions designated below shall file, upon assuming and leaving office and annually while in office, a statement of economic interests (also known as a Form 700) disclosing that employee's interest in investments, real property, and income designated as reportable under the disclosure category to which the employee's position is assigned. Employees in these "designated positions" are those who the District has determined will make or participate in making governmental decisions and who could forseeably be affected materially by those decisions. Desianated Positions 1. Member, Board of Directors 2. General Manager 3. Secretary of the District 4. Counsel for the District 5. Director of Operations 6. Director of Administration Disclosure Categories 1 1 7. Director of Engineering 8. Director of Plant Operations 9. Director of Collection System Operations 10. Finance Manager 11. Capital Projects Division Manager 12. Collection System Operations Division Manager 13. Plant Operations Division Manager 14. Plant Maintenance Division Manager 15. Environmental Services Division Manager Designated Positions 16. Regulatory Compliance Division Manager 17. Human Resources Manager 18. Communication Services Manager 19. Purchasing and Materials Manager 20. Consultant (see section below) 21. Employees or consultants hired as financial advisor or underwriter 22. Safety and Risk Management Administrator 23. Senior Control Systems Engineer 24. Associate Control Systems Engineer 25. Principal Engineer 26. Senior Engineer 27. Associate Engineer 28. Information Technology Administrator 29. Senior Materials Coordinator 30. Senior Buyer 31. Buyer 32. Material Services Supervisor 33. Plant Operations Superintendent 34. Field Operations Superintendent 35. Plant Maintenance Superintendent 36. Laboratory Superintendent 37. Environmental Compliance Superintendent 38. Right of Way Agent 39. Senior Right of Way Agent 40. Land Surveyor 41. Development Services Supervisor Central Contra Costa Sanitary District Conflict of Interest Code — Page 3 of 4 11/15/2012 Disclosure Categories 1 1 2 2 2 2 2 2,4 2,4 2,4 2,4 2,4 2,3 2,3 3 3,4 Consultants Only those Consultants who fall within the criteria described below shall disclose pursuant to the broadest disclosure category in the District's Conflict of Interest Code, unless the General Manager determines that a less broad category is appropriate. For purposes of the District's Conflict of Interest Code, "Consultant" means an individual who, pursuant to a contract with a state or local government agency: Makes a governmental decision whether to: A. Approve a rate, rule, or regulation; B. Adopt or enforce a law; C. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; D. Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract that requires agency approval; E. Grant agency approval to a contract that requires agency approval and to which the agency is a party, or to the specifications for such a contract; F. Grant agency approval to a plan, design, report, study, or similar item; Central Contra Costa Sanitary District Conflict of Interest Code — Page 4 of 4 11/15/2012 G. Adopt, or grant agency approval of, policies, standards, or guidelines for the agency, or for any subdivision thereof; or 2. Serves in a staff capacity with the agency and in that capacity participates in making governmental decisions as defined in FPPC Regulation 18702.2 or performs the same or substantially all the same duties for the agency that would otherwise be performed by an individual holding a position specified in the agency's Conflict of Interest Code. (FPPC Regulation 18701.) The General Manager shall make a determination in writing when a particular Consultant falls within the above - described criteria requiring the Consultant to be treated as a "designated position." The General Manager's determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. Disclosure Category In Category 1 — Officials and employees whose duties are broad and indefinable: All investments and business positions in business entities, and income (including loans, gifts and travel payments) from sources located in or doing business in the District's jurisdiction. Interests in real property located in the jurisdiction, including property within two miles of the boundaries of the District's jurisdiction. Category 2 — Officials and employees whose duties involve contracting or purchasing for the District: All investments and business positions in business entities, and income (including gifts, loans and travel payments) from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type utilized by this District. Category 3 — Officials and employees whose decisions may affect real property interests: Interests in real property located in the jurisdiction, including property within two miles of the boundaries of the District. Category 4 — Officials and employees with regulatory powers: All investments and business positions and income, including gifts, loans and travel payments, from sources that are subject to the regulatory, permit or licensing authority of, or have an application for a license or permit pending before, the District. October 2012 Board Members' Duties and Responsibilities The Board The Board is the legislative body that holds governing authority for the District, and its roles and responsibilities are as follows: • Establish policies, procedures, and regulations for District operations; • Establish and oversee the District's finances, budgets, programs and performance; • Provide the resources needed by management and staff to carry out District policy; • Determine the mission of the District; • Appoint and evaluate the General Manager, Secretary of the District, and District Counsel. Board Member Apart from his/her normal function as part of the Board, each individual Member's role and responsibilities are as follows: • Act as liaison between the District and outside agencies • Represent the interests of the District's customers • Participate in ceremonial events as District representative 0 j Central Contra Costa Sanitary District October 2012 Board Members' Role in Emergency Situations In the event of an emergency, the Board will be contacted by the Director of Emergency Services (General Manager or designee). If not contacted, the Board Member may call the General Manager or other member of District staff to receive' briefing. During an emergency, the Emergency Operations Center (EOC) will be set up ei in the Multi- Purpose Room at District Headquarters, or at the Collection System Operations offices in Walnut Creek. Attached is an excerpt from the Central Contra Costa Sanitary District Emergent, Operations Plan detailing the responsibilities of the Board of Directors in such an event. Central Contra Costa Sanitary District CENTRAL CONTRA COSTA SANITARY DISTRICT EMERGENCY OPERATIONS PLAN The role of the Board of Directors during an emergency is to support the Director of Emergency Services and the activities of the Emergency Operation Center (EOC). The Board President and the Board Members do not have a direct role in emergency operations. Action Checklist. Establish contact with the Director of Emergency Servim or report to the EOC to receive a briefing from the Director of Emergency Servkes on the nature and status of the emergency _.. If unable to contact the Director of Emergency Servkxm contact the Board Lialson Officer. If requested by the Director of Emergency Services, serve as liaisons to other elected officials and pubic / community organizations. Remain informed of emergency response activities. Assist in releesing or public information obtained from the Director of Emergency Services or Public Information Of er with concurrence from the Director of Emergency Services. If requested by the Director of Emergency Services or the Public Information Officer, serve as a spokesperson for the District at mectia interviews and press conferences. Ij Ratify Proclamation of Local Emergency at a special Board Meeting within seven (7) days after its issuance by the Director of Emergency Services. Hold Board Meetings as required to address legal or poky Issues arising from the emergency. JULY 2012 Annex A — Board Responsibilities 127 October 2012 President and President Pro Tem Roles/Duties Board President The President has no additional powers beyond those of any other Board The following are the role and responsibilities of the Board President: • Serve as presiding officer at all Board meetings; • Maintain proper conduct of Board meetings; • Run effective and efficient meetings, including but not limited to ensurin appropriate opportunities for public participation and managing the time • Keep the Board focused on the discussion at hand and true to its proper`ro) and responsibility; • Avoid diversions from the agenda or disruptions in the conduct of Distrtct business; • Maintain proper and appropriate parliamentary procedure and agenda management (e.g. ensure that actions are taken with proper motions and seconds); ; • Acknowledge and diplomatically facilitate appropriate public participation the activities of the Board; • Vote, discuss, and make motions the same as other members of the Board however, the President only makes motions and seconds motions on 5 occasions when Board Members are reluctant to do so; • Allow the other Board Members to complete their comments on an item before offering his or her own; • Keep the meeting discussions focused on properly- noticed agenda items an steadfastly move the Board toward making decisions; • Sign various Board- approved documents on behalf of the Board; • Appoint representatives and alternates to the Board, Committees and representatives to outside agencies and cities; and • Act as official representatives of the District for ceremonial purposes. President Pro Tem The President Pro Tem performs all the duties of President in the absence of the President. Central Contra Costa Sanitary District October 2012 Term of Office Elections are held on the first Tuesday in November of even - numbered years. Terms are staggered, and are for four years. Newly- elected Board Members are usually sworn in at the first Board meeting in December after the results of November election are certified by the Registrar of Voters. In December, the Board votes to appoint a new President and President Pro Tern whose one -year terms begin on January 1. The President also makes appointments to the standing Board Committees and representation to outside agencies and cities. Traditionally, the appointments are for one -year terms, although that can be changed by the Board. Central Contra Costa Sanitary District October 2012 Board Committees Currently, there are seven Standing Committees, listed below. These Committees are comprised of two Board Members (Chair and Member). Most of the Committee meet on an "as needed" basis, apart from the Budget and Finance Committee, whit meets on the Monday before each regularly- scheduled Board meeting. The Committee meetings are generally held at the Headquarters Office Building. The Committees act in an advisory capacity to the full Board. Action summaries at prepared after each meeting. A report is given by the Committee Chair at the neat; Board meeting, and if action by the full Board is necessary, the item is agendized f a future Board meeting. Committee agendas are prepared and posted in accordance with the Ralph M. Brov Act. Committees are comprised of two Board Members, and if a third Board Memt attends a Committee meeting, solely as an observer. the Brown Act has not been violated. If a third Board Member attends a Committee meeting with the intention participating, the meeting is in violation of the Brown Act unless noticed as a Spec Board meeting. Appointments to standing or other committees are generally made when the reorganizes annually in January. Standing Committees: Budget and Finance Committee Capital Projects Committee Household Hazardous Waste Committee Outreach Committee Human Resources Committee Real Estate Committee Recycled Water Committee The President may appoint an Alternate Board Member to fill in at a standing Committee meeting if one of its members is unable to attend. The President may also appoint Ad Hoc Committees as needed. Central Contra Costa Sanitary District October 2012 Representatives to Outside Agencies Board Members represent the District at various outside agencies. Board Liaison to Cities and County Board Members are appointed to act as liaisons to cities within the District and to Contra Costa County as listed. Alamo Concord Contra Costa County Danville Lafayette Martinez Moraga Orinda Pacheco Pleasant Hill San Ramon Walnut Creek •� Board Members are compensated for attendance at each Committee meeting and other meetings at which they formally represent the District, as listed above and in Resolution 2008 -109 included in Section 5, Board Member Benefits. L"I CI Central Contra Costa Sanitary District October 2012 General Manager's Role The General Manager is appointed by the Board, and the terms and conditions c General Manager's employment are expressed in a contract with the District. T contract provides that the incumbent shall perform all duties and assume all obligations of the office of General Manager described in the job classification, shall be subject to all pertinent provisions of the ordinances, resolutions, rules, regulations and all other lawful orders and directives of the District or the Boar( The job classification for the position of General Manager is approved by the Bi and specifies the required minimum qualifications, knowledge, skills and abiliti well as the duties of the position. Examples of duties include but are not limiter the following: • Provide sound, ethical leadership to District staff. • Establish and organize departments and functions of the District. • Oversee and direct the general financial planning, policy, and budgeting for District. • Draft and recommend rules, regulations, fees, and charges for adoption by d Board including specifications and requirements controlling the constructioz repair, maintenance, and operation of sewage systems, recycled water systet Household Hazardous Waste Collection Facility. • Administer and enforce policies and programs of the District, as approved b District Board, including the direction and supervision of administrative and management personnel concerning the administration, engineering, constm operation, safety, and maintenance of the District. • Attend District Board meetings and provide information, current and historic data, reports, and advice as requested. • Be responsible for and direct the preparation of the District's annual budget control authorized expenditures of the District. • Confer with private individuals, firms, organizations, and local, state, and fe agencies in the implementation and coordination of programs, projects, and various activities. • Represent the District at a variety of meetings and conferences conducted 1 civic and community organizations, technical groups, and legislative bodie • Act as Executive Director of Central Contra Costa Sanitary District Faciliti Financing Authority. • Demonstrate a commitment to recruit, hire and retain a diverse workforce. • Interview applicants and recommend appointments, promotions, and specie assignments. • Review incoming and outgoing correspondence and reports prepared by sty • Perform related duties as required. The General Manager delegates many duties to District managers and staff. so, the General Manager remains accountable to the Board. Central Contra Costa Sanitary District I October 2012 Practices Based on Good Governance The role of the General Manager is defined by the relationship between the position and the Board. In general, the relationship is defined by the Board setting policy for the District and/or providing policy -level direction to the General Manager, who is responsible for implementing policies. The General Manager is responsible for the performance of the District within policy criteria established by the Board, and is accountable to the Board for District operation. The Board's connection to the operational aspects of the District is through the General Manager. Decisions or instructions of individual Board Members or - Committees need to be confirmed by the entire Board before the General Manager acts on those directions. The General Manager is available to all Board Members to discuss District issues and strategies. The General Manager and Secretary of the District are the clearing house for informational requests originating from Board Members. C! N G C ICentral Contra Costa Sanitary District October 2012 Secretary of the District The Secretary of the District is one of the three Executive Manal appointed by and reporting directly to the Board Members. The the General Manager and District Counsel. The District Code sta The Secretary of the District makes independent decisions as nec Board requests, decisions and official actions; serves as custodia records of the District; attends meetings of the District Board an Committee meetings, conferences and hearings as may from tim( required; and participates and coordinates with management gro projects." The Secretary of the District acts for the Board Members in a var administrative, legal and record - keeping functions, and is part of Management Team. These functions include preparation of the F minutes, compliance with legal noticing, the Brown Act, records elections, Fair Political Practices Commission requirements, ethic special projects. Central Contra Costa Sanitary District IOctober 2012 M Working with District Staff M • Finally, let the General Manager know if you are disappointed with an action or response, so he /she is aware that improvement is needed. Central Contra Costa Sanitary District The District's success in efficiently accomplishing its mission is a result of the direct and regular direction from Board Members. There are times when a Board Member needs additional information from staff. The following suggestions will help staff ensure a Board Member receives needed information: • When possible, start with the General Manager or Secretary of the District; they wneeded; are able to obtain the answers or involve the right person in the discussion as • The Secretary of the District is able to assist at any time with administrative or other matters. When discussing a matter with staff, please recognize: N • It is easy for staff to interpret a question or comment from a Board Member as direction and to drop current assignments to undertake a project, research, or investigation, which was not the intention of the Board Member. • Be aware that information obtained directly from staff may be a work in progress. Information provided by staff may not be what is ultimately rrecommended by the General Manager. M • Finally, let the General Manager know if you are disappointed with an action or response, so he /she is aware that improvement is needed. Central Contra Costa Sanitary District Central Contra Costa Sanitary District Financial Reserve (Funds Required) Guidelines The purpose of the Central Contra Costa Sanitary District's (The District) Funds Required Guidelines is to ensure that the District will have sufficient liquid cash and investments available to meet its operating, capital, self- insurance, and debt service obligations. This guideline establishes a minimum amount required in cash and investments to cover total District cash flow needs throughout the year without borrowing funds. This minimum requirement provides a sufficient level of cash and investments for long -term financial planning and for maintaining the District's long -term financial health and stability. Cash Flow Guidelines and Definitions Funds Required is the amount of money held in cash and investments that is needed at June 301h of any fiscal year to meet our cash flow needs through mid - December, when we receive our first sewer service charge (SSC) and property tax payment from Contra Costa County (CCC). A cash flow analysis is prepared each year during the 10 -year planning process to determine an appropriate level of rate and fee adjustments. Staff will recommend rate and fee adjustments with a goal of maintaining our minimum Funds Required threshold. Funds are needed to pay our bills between mid -April and mid - December while we wait for our SSC and property tax installment to be deposited into our account by CCC. We have other smaller revenue sources each month that help offset expense allowing for the requirement to be less than the full eight -month period; however, the County installment is our largest revenue source. The amount of cash required from June 30th (the end of the fiscal year) until mid - December is 51h months. The amount currently needed to be set aside is approximately 30 -32% of the next year's budgeted O &M and Capital expenses, plus 100% of debt service. In addition, approximately $4 million is set aside in the Self- Insurance Fund. Events or Conditions that Prompt the Use of Cash Funds Required Cash Funds Required supply adequate cash flow to avoid short -term borrowing and to provide for unplanned or unforeseen events. Also, adequate cash Funds Required provide working capital to help stabilize rates and are a component of achieving favorable credit ratings that can help to minimize costs of issuing future debt. The cash Funds Required earn interest and provide a financial cushion for dealing with unanticipated financial needs such as: State legislative decisions impacting revenue flows to the District, acceleration of capital project work, unexpected benefit increases, new regulations, unanticipated increases in costs such as chemicals and utilities, unforeseen emergency situations, unexpected drops in revenue such as loss of some portion of property tax or changes in the economy such as housing slowdowns, and unexpected economic conditions in general that affect our revenue or expense. CADocuments and Settings \cgee \Local Settings \Temporary Internet Files\ Content .Outlook \4VS9801A \Financial Reserves - Funds Required Guidelines 6 5 13.doc Minimum Funds Required Requirements Below are definitions and our minimum Funds Required requirements in our four internal sub -funds based on annual cash -flow analyses. These thresholds should not drop below the minimum requirements as of June 30th each fiscal year. Also, while we show a minimum Funds Required amount for each internal sub -fund, temporary investments are recorded in the Sewer Construction Fund, with the exception of Self- Insurance that has its own investment pool. Minimum Funds Required are: • Running Expense Sub -Fund (Operations & Maintenance or O &M) accounts for the general operations of the District. Substantially all operating revenues and expenses are accounted for in this internal sub - fund. o Minimum Cash Funds Required = 32% of the next year's budgeted O &M expenses. Debt Service Sub -Fund accounts for activity associated with the payment of the District's long term bonds and loans. There is a Legally Restricted Reserve Requirement of one annual bond payment for each issuance held by our trustee, U.S. Bank, in the event the District is not able to make its payment. Funds held in this account will be used to make the last year's debt service payments for each issuance. o Minimum Cash Funds Required= 100% of next year's principal and interest, which must be paid each year per our bond document. Sewer Construction Sub -Fund (Capital or S /C) accounts for non - operating revenues, which are to be used for acquisition or construction of plant, property and equipment o Minimum Cash Funds Required = 30% of the next year's budgeted Capital Project Expenditures. Self- Insurance Sub -Fund accounts for interest earnings on cash balances in this sub -fund and cash allocations from other sub - funds, as well as for costs of insurance premiums, deductibles, and claims not covered by the District's insurance policies. o Minimum Cash Funds Required: determined by an Actuarial Study that is performed every-other year. The current temporary investment balance is approximately $4.0 million. • Self- Insurance Funds Required is not included in the 10 -year financial plan model. GASB 45 funds set aside for future retiree healthcare premiums are not included in our funds available. D18 Y EN�RP` CONTRA COSTA SAN /TqR, D C /SI R /cT ,. 1 P F L I I Wk i� A newsletter about protecting public health and the enviro Sewer Service Charges: hat do for Mv nion ey L =IL--L, s scL L -L,cL-- A �t t -� 1 New Sewer Rates Being Considered t a public hearing scheduled for June 6, the Central Contra Costa Sanitary District Board of Directors will determine whether or not to raise the annual Sewer Service Charge for fiscal year 2013 -14 and 2014 -15. The current residential Sewer Service Charge is $371 per year. The Sewer Service Charge for business customers depends on the composition and amount of sewage they produce. The Sewer Service Charge is collected from property owners via their annual property tax bills, but is a fee for services, not a tax. It provides approximately 60% of our revenue, paying for labor, benefits, chemicals, utilities, materials, supplies, repairs, maintenance, and other expenses necessary for collecting, treating, and disposing of wastewater for more than 461,000 residents and more than 5,000 businesses in Central Contra Costa County. It also helps pay for the operation of our popular Household Hazardous Waste Collection Facility, as well as the design, construction, and renovation of sewer pipelines, pumping stations, and treatment plant facilities. Other sources of revenue for the District include sewer connection fees, contract charges for District services provided for others, and a small portion of local property taxes. Why an Increase Is Being Considered For several months, the Board of Directors has been reviewing the District's finances and business plans, and studying new State and Federal regulations that will impact the District financially in both the short term and the long term. At the June 6 public hearing, the Board will determine whether an increase in the annual Sewer Service Charge is necessary to cover rising costs associated with infrastruture renewal, more stringent regulatory compliance, labor (particularly unfunded pension liabilities and health care), materials, and other expenses. Despite ongoing efforts to enhance revenue sources and cut spending — which include ...our reducing operating expenses, goal is deferring nonessential repairs plWp S to and upgrades to facilities, y filling only essential positions, give our cutting back on outside services, Customers and spending down reserve funds — the costs of running a maximum modern wastewater collection value and treatment system are substantial, and are going up. for their State and Federal water and air money. quality regulations are becoming increasingly more stringent. While we applaud such actions designed to further protect public health and the environment, we will need to make significant investments in our collection system and treatment processes (perhaps as much as $145 million over the next ten years) to comply. Another financial challenge is nearly $200 million Please see Sewer Rates, Page 9 Central San Named Best in the Bay Area entral San's people and programs are among the best in the Bay area. This fact was acknowledged recently when the District won the Collection System of the Year and Treatment Plant of the Year awards from the California Water i Environment Association, San Francisco Bay Section. The awards are earned through remarkable accomplishments in compliance, safety, training, innovative practices, cost effectiveness and superior operations. It's unusual for an agency to win both the Collection System and Treatment Plant awards in the same year; Central San has done so twice. The District will now go on to compete at the statewide level in April. WHAT DO 1 GET FOR MY MONEY: Services Funded by Sewer Service Charges The annual Sewer Service Charge pays for many community services, including: • Operating and maintaining a modern wastewater treatment facility that protects public health and the environment by removing thousands of pollutants before safely returning the water to Suisun Bay. • Maintaining and repairing 1,500 miles of sewer pipe- lines and 19 pumping stations so 40 million gallons of wastewater can reliably flow to our treatment facilities from 461,000 residents and 5,000 businesses every day. • Preventing water pollution by collecting, recycling, and safely disposing of more than 2 million pounds of household hazardous wastes and unwanted pharmaceuticals each year; conducting pretreatment, regulatory monitoring and enforcement activities for business and industrial users; and promoting pollution prevention through public outreach and student education programs. • Renovating, constructing and maintaining buildings, pipelines facilities and equipment to ensure a lasting, reliable, and efficie infrastructure. • Providing 600 million gallons of recycled water for landscape irrigation, plant operations, and other uses each year. (See article on page 7.) i31 FAQs About Our Unfunded Liability Q What is an Unfunded Liability? A. The unfunded liability is the amount of money owed by the District for employee benefits, which include pension costs, retiree medical benefits, and the cost of accrued vacation time and sick leave which is paid when an employee leaves the District. It's called an unfunded liability because there are not sufficient assets on hand today to meet projected pension and medical benefit payments promised for the next 50 + years. This is not at all unusual for a pension system. Q. How much is Central San's unfunded liability? A. Our total unfunded liability is $186.7 million. This includes $109.1 million for pension - related Unfunded Actuarial Accrued Liability, and $77.6 million for Other Post Employment Benefits (the costs of medical benefits for current and future retirees). Q. How did the unfunded liability get so large? A. Our unfunded liability in 2007 was $33.3 million, which was being paid down each year. The increased liability occurred through Contra Costa County Employees' Retirement Association ( CCCERA), the retirement board that handles Central San's pensions. CCCERA's market value took a loss of 28.35% when the stock market crashed in 2008, which increased our unfunded liability by $42.4 million over the past four years. When CCCERA does not make its annual targeted return of 7.75% on 5 _ investments, Y e - the amount of the -'- ,_ X unfunded liability grows to cover that loss of earnings. CCCERA's investments have earned only 4.77% over the past 10 years. In addition, the depooling of CCCERA's assets in December 2009, which required us to pay the actual cost of our retirement program rather than a pool average that had been shared by Contra Costa County and 16 other public agencies, raised our unfunded pension liability by an additional $33.4 million. Q. What is being done to pay down or eliminate both liabilities? A. Central San's 10 -Year Plan (which is updated each year) calls for additional payments toward the pension unfunded liability of $75 million over the next 10 years. Central San's retiree health care debt, which now stands at $77.6 million, is being paid down at $8.3 million per year. 0. 0 0 0 0 0 0 .... 0 0•.•••••.• 0 0 0 0 0 0 0 0 0 0 0 0 0••••• 0 This Newsletter is Online ould you like to read past issues, or share VVPipeline newsletters with family or friends wh do not receive them through the mail? All that's needed is Internet access; every issue since Fall 2005 is freely available on our website. Please feel free to share this link: www.centralsan.org / publications GM Ann Farrell • Retires • entral Contra Costa • Sanitary District General Manager Ann • Farrell retired in January. ■ Director of Operations Curt Swanson has been • named by the Board • to serve as Provisional • General Manager while • the important process of • selecting a permanent • replacement takes place. Join Us On Earth Day e will have a booth at the Earth Day Festival being held at the John Muir National Historic Site, 4202 Alhambra Ave., Martinez, on Saturday, April 20. Our friendly staff will share tips and handouts about pollution prevention and household hazardous waste disposal. Stop by to say hi! .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Staff & Services Temporarily Relocated ue to needed seismic upgrades, the Central Contra Costa Sanitary District's headquarters building at 5019 Imhoff Place in Martinez is undergoing retrofit work. The work began in February and is expected to take about eight months. During this period, employees and services are operating out of various temporary locations. Some, such as the Permit Counter, are across the street from the headquarters; others, including Human Resources, are in a leased office space at 1470 Enea Circle in Concord. Note: This does not affect the District Board Room, Multipurpose Room, or the staff who work in the Plant Operations building. If you plan to visit, please call beforehand to find out where to go: (925) 229 -9500. You can also visit our website for more information: www.centralsan.org Your Pesticide May Be Polluting the Bay IDesticide use around homes has been a source of water pollution for many years. Rainfall and watering of lawns and gardens can create runoff that washes pesticides, fertilizers, and other contaminants into storm drains through which water flows directly to creeks and the Bay. Polluted runoff has been linked to fish kills and loss of diversity in aquatic species. Pollutants of particular concern are pesticides made with pyrethroids. Pyrethroids are synthetic versions of pyrethrin, a natural insecticide found in certain species of chrysanthemum. Pyrethroids do not break down in sunlight as quickly as pyrethrin, and are particularly dangerous to aquatic life, even at low concentrations. Check labels carefully and avoid using pesticides containing pyrethroids (including permethrin, bifenthrin and deltamethrin). Avoid using pesticides outdoors when rain is forecast; do not overwater lawns or gardens; reduce or eliminate runoff. These and other less -toxic pest control and gardening tips are described in more detail on our website, www.centralan.org. Click on "Healthy Garden Guide" in the lower left of the home page. Protect Water Quality: DO NOT Flush Your Drugs! D o you have expired or unwanted medications? Disposing of them properly will help to protect your family, your community, and the environment. Please bring them to one of these free drop -off sites for safe disposal: • City of Clayton Police Dept. • Contra Costa Medical • Town of Moraga Police • City of San Ramon Police 6000 Heritage Trail, Clayton Center Sheriff's Substation Dept. Dept. (check with deputy on duty) 329 Rheem Blvd., Moraga 2401 Crow Canyon Rd., San • City of Concord Police 2500 Alhambra Ave., Martinez Ramon Dept. • City of Orinda Police Dept. 1350 Galindo St., Concord • Town of Danville Police Dept. 22 Orinda Way, Orinda • Walnut Creek City Hall • Sheriff's Field Operations 510 La Gonda Way, Danville . City of Pleasant Hill Police 1666 North Main St., Walnut Building • City of Martinez Police Dept. Dept. Creek 1980 Muir Rd., Martinez 525 Henrietta St., Martinez 330 Civic Dr., Pleasant Hill To ensure privacy, transfer prescribed pills to a sealable plastic bag before depositing. To prevent spills, leave liquids in original bottles (cross out personal information) and seal within a plastic bag. Do not put sharps or anything other than medications in the container! For more information, call 1- 800 - 646 -1431 or visit www.centralsan.org Amazing System Allows You to Flush and T e ° Q ewers. Nobody likes them. They're dark, wet, and smelly; underground and unappreciated. But before sewers, human waste was disposed of in a variety of unsanitary ways — including emptying chamber pots into the street! Typhoid and other diseases were common and deadly. We've come a long way since then. Now you can just flush and forget, knowing there is a reliable system in place to safely whisk away the human waste and clean the water it pollutes. What you might not know is the extent of effort and expense required to maintain such a reliable system. We won't go into the difficulties of setting up our system in the first place. Suffice it to say that building sewers (to which nearly 160,000 homes, schools, hospitals and other buildings are connected) and a modern wastewater treatment plant wasn't fast, easy or cheap. But that system is in place now, so what's there to worry about? AGE, DETERIORATION, CAPACITY Some original sections of the sewer system were constructed before the Central Contra Costa Sanitary District was formed in 1946. We "inherited" those pipes, which were made of clay. Old clay pipes tend to deteriorate and break apart. (Most sewers today are made of PVC.) Another issue is capacity. Small pipes are fine for small communities, but as the population expands, so must the size of the sewer system. CLOGS Have you ever noticed how many trees are in this area? Unfortunately, their roots can infiltrate and grow inside sewers and are the number -one cause of clogs. The number -two cause is grease, which hardens and builds up inside pipes after being poured or washed down the drains of countless homes and restaurants. Number three and coming on strong are disposable wipes. They (even those labeled "flushable ") do not break down quickly in water like toilet paper does. They not only clog sewers, they clog our pumps and other equipment. If clogs are not found and cleared in time, sewage overflows can result. POLLUTANTS Our system does an excellent job of taking care of the normal stuff that goes down drains and into our sewers, such as dirty water, soap, human waste, and toilet paper. But other substances, many of which are toxic to aquatic life, sometime find their way into the system as well. These include mercury, dioxin, cyanide, copper, lead, pharmaceuticals, pesticides, paint products, and thousands of chemicals. Because our modern wastewater treatment plant cannot remove all traces of pollutants such as these, pollution prevention is a top priority. Upgrading aging infrastructure, repairing pipes, clearing clogs, preventing overflows, and ensuring that the wastewater we treat each day is clean and safe for the environment before we recycle or discharge it into Suisun Bay requires a massive ongoing effort. Think of us as a small army fighting a never - ending battle to keep you and the environment safe from the hazards of water pollution. In addition to the soldiers, an army's success depends on leadership, teamwork, training, weapons, analysis, planning, communication, logistics, supplies, vehicles, equipment, facilities... you get the idea. What we do is essential, and it costs more than $100 million dollars each year. But what we charge each residential customer for this amazing system amounts to just over $1 per day. We hope you feel that money is well spent. oft MORE THAN 26 MILLION POUNDS IL of Household Hazardous Waste kept out of the environment! T11Lz1�[IV UILI 1`0 [,1 H111W 1 -111d 1111ti�Y LIILLLI1 -101� 1-1,1 11 -Y A Drive - Through That's Good for Your Waste! e borrowed the fast food industry's successful drive - through concept to make using our Household Hazardous Waste Collection Facility as convenient as possible. When you bring paint, batteries, oil, pesticides, chemicals, fluorescent lights and other forms of household hazardous waste to our facility for safe disposal, just pull in and stay comfortably in your car while a friendly technician unloads your items. It only takes a few minutes, then you can be on your way, knowing you helped to keep pollutants out of the environment. For residents of central Contra Costa County, no appointment is needed and there's no drop - off charge! (Businesses need an appointment and must pay a nominal fee.) Please Note Transportation Restrictions Materials must be packaged in sturdy, non - leaking containers (ideally, the originals) no larger than five gallons in size. For transportation safety, the quantity for each trip is limited to 125 pounds or 15 gallons. However, you can make as many trips to the facility in one day as you like. Bring Some, Take Some — or Just Take Some (Free)! Our goal is to reuse and recycle as many of the items brought to the facility as possible. So when you visit, be sure to check out our Reuse Room. It's stocked with items brought in for disposal (such as paint, wood stain, garden products, and a wide variety of cleansers and automotive products) that are still in useable condition — and they are free for the taking. For more information about the HHW Facility, please call 1- 800 - 646 -1431 or visit www.centralsan.org HOURS Residents: Monday — Saturday, 9 a.m. - 4 p.m. (Reuse Room closes at 3:30 p.m.) Businesses: Monday —Saturday, by appointment only 1- 800 - 646 -1431 *-&4 Household Hazardous Waste Collection Facility of F pR r- �� �MN tiro, cccso 9 yo Treatment Plant A� PRNp.01Np' R\ I R 9 o �P`P PP °Q I 0or P`'� erP Eligible Communities Alamo, Blackhowk, Clayton, Concord, Clyde, Danville, Lafayette, Martinez, C) Morago, Orindo, Pacheco, m G Pleasant Hill, San Ramon, 4 Walnut Creek and unincorporated Central County areas. • From Hwy. 4 take the Solano Way exit. • From 1 -680 take Hwy. 4 East to Solano Way exit. ... Sewer Rates (cont'd from page 2) : How to Protect Your Property in unfunded liabilities the District has ; from Raw Sewage already begun to pay down (see article on Page 4). No one enjoys the idea of rate increases (least of all our Board of Directors), and our goal is always to give our customers maximum value for their money. Our rates are lower than those of most other wastewater agencies in the Bay area. However, our rates must remain appropriate to enable us to meet all regulatory requirements, provide the public health and environmental protection services demanded by the community, and properly maintain publicly funded assets. Property Owners are Invited to Comment As a public utility in California, we cannot raise rates without giving constituents an opportunity to protest the proposed increase. In April, we will send a state - mandated Proposition 218 notification to affected property owners with details about the possible rate increase, the public hearing at which the increase will be considered, and instructions on how to comment on or protest the increase. If more than 50% of property owners protest the increase before or during the June 6 public hearing, the District will be legally prohibited from raising the rates. If you have questions about your Sewer Service Charge, please contact us via email at rates @centralsan.org or call (925) 335 -7739. Need a Guest Speaker for Your Group? f your audience would be interested in hearing about Central San and our water pollution prevention efforts, please call our Public InfoLine at (925) 335 -7702 and leave a message about your event. We'll do our best to provide a speaker for you, free of charge. OVERFLOW W e maintain 1,500 miles of sewers PROTECTION and work very hard to prevent DEVICES failures, clogs, and overflows. Our efforts have resulted in one of the lowest overflow rates in California. But no matter what we do, we can never totally eliminate the ■ possibility of an overflow. There are just too many ■ things beyond our control. Stuff happens. ' But it needn't happen to you. ■ By making sure an Overflow Protection Device is ■ installed on your home's private side - sewer, you will prevent sewage from backing up into your home from a ■ clogged sewer main. The device causes sewage backing ■ up in your pipe from the direction of the street to spill ■ into your yard, rather than come up through drains inside your home. Note: It will not help if your pipe is clogged between the ■ drain and the device, so keep disposable wipes, grease, and anything else that might cause clogs out of your pipes! Overflow Protection Devices are available through plumbing supply stores. We recommend installation by a licensed plumber. Keep the device clear of obstructions, such as dirt or vegetation, that might interfere with its operation. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i I 1 1 For more information, please call our Permit Counter staff at (925) 229 -7371. ial wi it I ee • There are different styles of Overflow Protection Devices. The `mushroom" • style, pictured left, has been cut away to show the ball that sits on the • pipe opening inside the metal covering. The style pictured at right (shown • with the top popped up) is best for installing in driveways or other areas 9 where above - ground protrusions are undesirable. V Infrastructure Improvements MW entral Contra Costa Sanitary District regularly maintains, repairs or replaces sewer lines and other elements of its 1,500 -mile wastewater collection system to ensure continuous, trouble -free service for our 461,100 customers. We do our best to minimize the inconveniences our projects cause and appreciate your understanding. Here's a brief summary of our major ongoing construction projects: Martinez and Walnut Creek The 2013 CIPP Project is renovating sewers in South Main Street and Lancaster Road between Westwood Court and Castle Hill Road in Walnut Creek; and on the Shell Refinery Property and east along Marina Vista to Highway 1 -680 in Martinez. Expected completion: Nov. 2013. The Concord Landscape Project is extending the District's recycled water system in the Diamond Blvd. and Meridian Park Blvd. area. Expected completion: Jan. 2014. Lafayette The Lafayette Sewer Renovation Project, Phase 8, is renovating sewers in the Upper Happy Valley Road and South Peardale Drive areas. Expected ► completion: Feb. 2014. Orinda r The North Orinda Sewer Renovations Project, Phase 5, is renovating sewers in the Camino Sobrate and La Cuesta Road areas of North Orinda. Expected completion: March 2014. For more info... For more information about these or other construction projects, please contact Community Affairs Representative Chris Carpenter at (925) 229-7200 or ccorp@centrcilson.org. More info: Detailed project maps are posted on our website, www.centralsan.org (check the "Construction r� Zone" in the lower right of the home page). IRS ■ ■ ■ ■ ■ ■ ■ ■ ■ l� \ Don't Flush So- Called "Flushable" Wipes! f you use disposable wipes while doing your spring cleaning, please don't flush them down the toilet — even if they are labeled as "flushable." That label simply means they will go down your toilet when flushed. What you should be concerned about is what can happen after such products are flushed. Unlike toilet paper, these items do not quickly disintegrate in water. They stay largely intact as they travel through the sewer pipes and can get caught on roots or other debris, increasing the risk of clogs. As these products have grown in popularity, our crews have been spending time and resources to remove mounds of disposable wipes that clog our public sewer lines, pumps, and equipment. These items are an even greater threat to your home's sewer line, which is much smaller and more easily clogged. Please throw away cleaning /disinfecting wipes, moist towelettes, personal hygiene products, and similar products in the trash — never in your toilet. No matter what a label says, the only items you should flush are human waste and toilet paper. Handy -Dandy i JW- C- "Should I Flush it ?" 1 1 1 1 1 1 L L Lz�► LLLQ:�- LL LL- --- - - - - -- "Yes!" -- - - - - - - - - - - - - - 1 1 X 1 1 \ 1 1 "No!" 1 I 1 1 1 1 DO NOT FLUSH IT'. Check our online guide for the proper disposal method: www.centralsan.org/ documents /Brochure_Disposal_Guide.pdf L 1 1 I 1 1 1 1 FLUSH IT! Treatment Plant Tours entral San conducts free treatment plant tours for groups of students (grade 6 and up) and adults who are interested in learning about the effects of water pollution, the mechanical and biological processes we use to treat and disinfect wastewater, and what we can all do to help keep our water environment clean. Call Kit Ohlman at (925) 229 -7329 for more information. Ak Central Contra Costa Sanitary District Protecting Public Health and the Environment 5019 Imhoff Place, Martinez, CA 94553 About CCCSD 0 ur mission as a Special District is to protect public health and the environment. We do this by collecting and treating wastewater, providing recycled water, and promoting pollution prevention. Our treatment plant in Martinez collects, treats, and disinfects an average of 40 million gallons of wastewater every day. Some treated wastewater is recycled (treated further) for irrigation use on golf courses and parks; the rest is released into Suisun Bay. We also operate a Household Hazardous Waste Collection Facility and sponsor 11 collection sites for the disposal of pharmaceuticals. Where to Call... General information Sewer overflows (925) 228 -9500 or www.centralsan.org (925) 933 -0955 or 933 -0990 Treatment Plant InfoLine (Report Odors) (925) 335 -7703 Household Hazardous Waste InfoLine (800) 646 -1431 Sewer connection permits /Permit Counter (925) 229 -7371 To report illegal discharges into (925) 229 -7288 (during business hours) sewer system (925) 229 -7214 (after hours) Source Control (925) 229 -7288 Job Hotline (925) 229 -7109 or www.centralsan.org Student Education Programs (925) 229 -7310 or www.centralsan.org Public InfoLine (925) 335 -7702 or www.centralsan.org Board of Directors James A. Nejedly, President • David R. Williams, President Pro Tern • Paul H. Causey, Director • Michael R. McGill, Director • Tad J. Pilecki, Director Board meetings are open to the public and are held on the 1 st and 3rd Thursday of each month at 2 p.m. in the CCCSD Board Room, 5019 Imhoff Place, Martinez. Curt W. Swanson, Provisional General Manager PRSRTSTD U.S. Postage PAID Concord. CA Permit No. 530 rtinez Clyde • e ■ • acheco •Concord Pleasant Hill • Clayton • walnut Creek Orinda • Lafayette • Alamo • Moraga • Danville • San Ramon CCCSD serves 46 1, 100 customers within its 144- square -mile service area. Sewage collection and wastewater treatment (and HHW service) for 326,900 people Wastewater treatment for 134,200 residents in Concord and Clayton by contract and HHW service HHW disposal only CCCSD's Headquarters, treatment plant, and HHW Collection Facility are located in Martinez The Central Contra Costa Sanitary District PIPELINE Written and designed by CCCSD to communicate pollution prevention messages to the people and communities we serve Michael Scahill, Editor • Bonnie Lowe, Writer Charles Waltmire, Graphic Designer View archived issues online at www.centralsan.org PIPELINE is printed with soy -based inks on Recycled Paper S Y Pleaeant Hill ImArOvonat Garden Pleasant Hill Education Center Santa Barbara Road Pleasant Hill CA 94523 c W� o r �Ur3 N1 LA 4 O N `+"� O WU:Q •� = bA CC `o 4 • �� 0 LA LO v N +• = C y E ) "O c tw 41 a� 4.1-0 co � O Q L N O � b0 •O a D � OWNED _ CL W� o N o 0 �Ur3 WU:Q 4 c v N = C y E "O c tw 41 a� 4.1-0 co � O Q L O b0 •O D s a �a-o C _� � =ao�_� _ 3 L H L L C y E 7 E L ctl V vl fd C C NO .- .V = N O° to L 'o ° Q 7 O y N a+ y E cy a L O = [d u vi N H O N N C t L O N L •= O MC N C a) L L O L L U Y L cd UU v ca .O m N L O y C vii t0 ,> ° L ° v 0 s Y 3 a�i 3 a (t 3_ C L L m U C U O H V >� 0--0 Q v ea co M dj S N ° 3a C- d L t L �j vii V tin _. 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V C _0 C _ E > V = LU � _ O v f +' 3 4-+ >= c == o $ E E L O ca ca -0 o a C �" L .� c d +., M< U ,� I0 a) M c aw) O s U I- L 'N O u I- O F- O ~y o N L Q+j y� L a v y �,•� d °_0 d N N D U C z. Plea Y111 Ivi4trvcirtb L(�a -dpvv Mt. Diablo Adult Education • (925) 937 -1530 • email: phecgarden @prodigy.net Purpose of the Demonstration Garden To demonstrate water conservation measures and display low maintenance plants that residents can grow in their own gardens Q To provide a living laboratory for students of Mt. Diablo's adult education gardening program as well as other schools elementary, middle, high schools, community colleges and the Contra Costa Master Gardener program Q To provide a natural open habitat for residents and visitors at Pleasant Hill Education Center, including users of the Pleasant Hill Sports Complex Q To attract birds and butterflies and create a wildlife habitat k Q To remove a community eyesore and replace it with a pleasant corner 0 To be a place to sit and simply enjoy nature J FRIct -,Y PZP- �t Y ab I n4trtAltfft,01 � (�a rde A, (PYIG) Mt. Diablo Adult Education • (925) 937 -1530 • email: phecgarden @prodigy.net Contributions to the Garden AS peda/Ghahlr You to Ghese l�U /uhfeers ah�l CUhfoibufa�s Garden Volunteers Steering Committee: linger Casad Carol Husslein Monika Olsen Jan Egan Arti Kirch Dana Simmons Elaine Groen Susan Lorenzen Don Wilson Volunteers who helped in other ways: Margaret Craw Dianne Johnsen Tom Ruegg Mary Lou Williams Sam Fugate Russell Jones Aleeta Slattery Janice Winsby Denise Fuller Pat Keating Crosby Sperling Ariane Habets Karen Larkin Leslie Styles Tony Hoehner Lesley Pope Karen Talbot /fey CalitXhulaps fcr fhe amdeh 'central Comm Costa L Sa 4=76=, -i Pleasant Hill Ca.+wurcu2y Fawcfaliow Central Contra Costa Pleasant Hill Community City of Pleasant Hill/ Sanitary District Foundation Civic Action Committee Special thanks to these generous contributors: Nay and Jim Albertson California Council of Adult Mark's Paint Mart Ashby Lumber Education, Bay Section Mt. Diablo Landscape Center Boy Scouts of America, Diablo Valley College Adaptive Navlets Nursery, Pleasant Hill Pleasant Hill Troops 405, 421 Horticulture Class Pleasant Hill Recreation and and 221 Diamond K Supply Parks District C &W Tree & Landscaping Co. Ewing Irrigation Robert Swanson Michael Lewis Maclver Landscape, Inc. Tap Plastics In appreciation for their donation: Bill's Ace Hardware Mt. Diablo Adult Education, Mt. Pamela Trail Cresco Xpress Diablo Unified School District Safeway, Pleasant Hill ESL Program, Mt. Diablo Adult Markham Regional Arboretum University of California Education Society Cooperative Extension, Master The Gardens at Heather Farms Orchard Hardware Supply, Gardener Program Shirley Jochim Concord Michael Lewis Pleasant Hill Garden Study Club For providing planning and consultation services: David Amme Kathy Kramer Chris Dundon John Meyer (ff� d central Contra BOARD MEETING AGENDA misty misfile BOARD OFDIRF.CTORS: JAMES A, NEMDLY President DAVID X WILLIAMS President Pro Tem PA U1. H. CAUSEY Board Room MICHAEL R.a&GILL T.9D J. PILEeKI Thursday May 16, 2013 PHONE: (925) 228 -9500 2:00 p.m. FAX: (925) 676 -7211 rvxw centralsan.org INFORMATION FOR THE PUBLIC Anyone wishing to address the Board of Directors should complete a speaker's card and submit it to the Secretary of the District. In addressing the Board, speakers should step to the podium and state their names and address for the record. The Board President may direct questions to any member of the audience as appropriate at any time during the meeting. All matters listed under the CONSENT CALENDAR are considered to be routine by the Board of Directors and will be enacted by one motion. There will be no separate discussion of these items unless requested by a Member .of the Board of Directors or the public prior to the time the Board votes on the motion to adopt. ADDRESSING THE BOARD ON AN ITEM ON THE AGENDA. Persons wishing to speak on PUBLIC HEARINGS and OTHER MATTERS listed on the agenda will be heard when the President calls for comments from the audience, except on public hearing items previously heard and closed to public comment. The President 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 'Board for discussion and action. There is no further comment permitted from the audience unless invited by the Board. ADDRESSING THE BOARD ON AN ITEM NOT ON THE AGENDA In accordance with state law, the Board is prohibited from discussing items not calendared on the agenda. You may address the Board 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 agenda items.are available for public review at the Reception Desk, 4849 Imhoff Place, Martinez. Not every agenda item is accompanied by written supporting material. Reports and information relating to agenda items distributed within 72 hours of the meeting to a majority of the Board are also available for public inspection at the Reception Desk. During the meeting, information and supporting materials are available in the Board 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. May 16, 2013 Board Agenda Page 2 1. ROLL CALL a. Pledge of Allegiance to the Flag. b. Introductions. Douglas Little, Shift Supervisor in the Plant Operations'Division James Ramirez, Vehicle and Equipment Mechanic in the Collection System Operations Division Staff Recommendation: Welcome new employees. President Nejedly will present the District pins. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. Presentation to the District of Pipe Users Group (PUG) Appreciation Plaque by Roberts McMullin, Vice - Chairman of the Northern California PUG, and Jimmy Dang, Secretary of the Northern California PUG. (5 minute staff presentation.) Staff Recommendation: Present award to President Nejedly. b. Presentation by the District of wastewater and water agencies "Excellence in Water Research" awards to two student winners of the Contra Costa County Science and Engineering Fair held in March. (10 minute staff presentation.) Staff Recommendation: Following a brief overview of the projects, President Nejedly will present the awards. C. Recognize 2012 Safety Suggestion of the Year Award recipient Mike Klubben, Construction Equipment Operator in the Collection System Operations Division, for his suggestion to develop a highly effective notched device for turning sanitary sewer rod through manholes. (5 minute staff presentation.) Staff Recommendation: Following the report, President Nejedly will present the award. May 16, 2013 Board Agenda Page 3 4. CONSENT CALENDAR Staff Recommendation (Motion Required): Adopt the Consent Calendar as recommended. a. Approve minutes of Board meetings held on the following dates: 1) April 18, 2013 (Special meeting); and 2) April 18, 2013 (Regular meeting). b. Approve expenditures dated May 16, 2013. Reviewed by Budget and Finance Committee. c. Set June 20, 2013 at 2:00 p.m. as the date and time for a public hearing to onsider adopting the draft Fiscal Year 2013 -14 Capital Improvement Budget IB) and approving the 2013 Ten -Year Capital Improvement Plan (CIP). d. et June 20, 2013 at 2:00 p.m. as the date and time for a public hearing to consider: 1) Adopting the following budgets for Fiscal Year 2013 -14: • Operations and Maintenance Budget • Debt Service Fund Budget, and • Self- Insurance Fund Budget; and 2) Establishing Sewer Service Charge rates for Fiscal -Years 2013 -14 and 2014 -15. e. Adopt Resolution 2013 -010 approving a real property agreement with John Stephens Downs and Stephanie Marlin Downs, owners of the property located at 110 Lombardy Lane in Ornda (APN 266- 082 -006), regarding installation of a private storm drain on the property within a District easement; and authorize staff to record the agreement with the Contra Costa County Recorder. f. Adopt Resolution 2013 -011 accepting a grant of easement from Laura Undlin, property owner at 40 Barbara Road in Orinda (APN 273- 063 -029) (Job 2645 — Parcel 6); and authorizing staff to record documents with the Contra Costa County Recorder. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER May 16, 2013 Board Agenda Page 4 6. BIDS AND AWARDS a. Approve the following actions in connection with Primary Treatment Renovations, District Project 7285: (No presentation is planned; staff will be available to answer questions.) 1) Award a construction contract in the amount of $10,277,000 to W. M. Lyles Company, the lowest responsive and responsible bidder for the Primary Treatment Renovations, District Project 7285; find that the project is exempt from California Environmental Quality Act (CEQA); and authorize the General Manager to execute the contract documents subject to submittal requirements. 2) Authorize the General Manager to execute an amendment in the amount of $338,000 to an existing professional services agreement with HDR Engineering, Inc., for construction support, increasing the cost ceiling to $1,165,768; and 3) Authorize the General Manager to execute an inspection services agreement with Complete Project Solutions, Inc. in an amount not to exceed $346,000 to supplement District staff inspections. Staff Recommendation (Motion Required): Find that the project is exempt from CEQA; award a construction contract to W. M. Lyles Company; authorize the General Manager to execute the contract documents subject to submittal requirements; and authorize the General Manager to execute agreements as outlined above. 7. REPORTS a. General Manager 1) Update on the Seismic Improvements for Headquarters Office Building (HOB), District Project 8226. (5 minute staff presentation.) Staff Recommendation: Receive the update. 2) Announcements Staff Recommendation: Receive the announcements. b. Counsel for the District C. Secretary of the District 1) Postponement of May 21, 2013 Board Priorities Workshop. May 16, 2013 Board Agenda Page 5 d. Board Members 1) Board Member reports on future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses; recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses. Member Pilecki Member Causey • May 2, 2013 — Contra Costa County Mayors Conference hosted by the City of Orinda featuring Contra Costa Times columnist Dan Borenstein speaking on pension reform in California (expenses). Member McGill • May 6, 2013 — Enterprise Committee meeting — Member McGill (stipend) and President Nejedly (stipend). • May 8, 2013 — The Industrial Association of Contra Costa County (IACCC) May Forum featuring a presentation Earl L. Hagstrom including an overview of the technical, environmental, economic, and legislative issues associated with Hydraulic Fracturing (expenses). • May 14, 2013 — Budget and Finance Committee. meeting — Member McGill (stipend) and President Nejedly (stipend). Member Williams May 7, 2013 — Human Resources Committee meeting Member Williams (stipend) and Member Pilecki (stipend). President Nejedly Staff Recommendation: Receive the reports. 2) Announcements Staff Recommendation: Receive the announcements. May 16, 2013 Board Agenda Page 6 8. BUDGET AND FINANCE a. Receive the Fiscal Year 2013 -14 Operations and Maintenance Budget, and the Fiscal Year 2013 -14 Debt Service Fund Budget. Reviewed by Budget and Finance Committee. (5 minute staff presentation.) Staff Recommendation: Receive the Fiscal Year 2013 -14 Operations and Maintenance Budget and the Fiscal Year 2013 -14 Debt Service Fund Budget. Provide staff with comments leading to the approval and adoption of the Budgets at the June 20, 2013 Board Meeting. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION a. Receive update on emergency declared on May 2, 2013 and, if work has not been completed, authorize the General Manager under Public Contract Code 22050(b) to continue to direct Case /Cotter, Inc., D. W. Nicholson Corp., and District forces to perform emergency repairs on the damaged Dissolved Air Flotation (DAF) tank, District Project 7265, Treatment Plant Equipment Replacement project. (5 minute staff presentation.) Staff Recommendation (Motion Required): Receive update on emergency. If needed, continue authorization for emergency repairs by 4/5 vote of the Board. 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS 11. CLOSED SESSION a. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • Labor Counsel Daniel Clinton, Esq. • Provisional General Manager Curt Swanson • Human Resources Manager Teji O'Malley • Secretary of the District Elaine Boehme Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS /CG) • Management Group 12. REPORT OUT OF CLOSED SESSION 13. ADJOURNMENT May 16, 2013 Board Agenda Page 7 CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD CALENDAR DA TE/TIME MEETING /A TTENDEES L OCA TION MAY 20'13 Monday Special Board Meeting — Closed Session 4080 Mallard Drive, Concord May 13 (General Manager Interviews) 8:00 a.m. -2:00 p.m. Board of Directors Tuesday Budget and Finance Committee Meeting 1470 Enea Circle, 2nd Floor, May 14 McGill, Nejedly Concord 3:00 p.m. Thursday Board Meeting Board Room May 16 Board of Directors_ 2:00 p.m. Monday Special Board Meeting — Closed Session 4080 Mallard Drive, Concord May 20 (General Manager Interviews) 8 :00 a.m. -12:30 p.m. Board of Directors Tuesday Special Board Meeting — Closed Session 4080 Mallard Drive, Concord May 21 (General Manager Interviews) 8:00 a.m. -2:00 p.m. Board of Directors JUNE 2013 Monday Budget and Finance Committee Meeting 1470 Enea Circle, 2" Floor, June 3 McGill, Nejedly Concord 3:00 p.m. Thursday Board Meeting Board Room June 6 Board of Directors 2:00 p.m. Monday Budget and Finance Committee Meeting 1470 Enea Circle, 2 nd Floor, June 17 McGill, Nejedly Concord 3:00 p.m. Thursday Board Meeting Board Room June 20 Board of Directors 2:00 p.m. JULY 2013 Monday Budget and Finance Committee Meeting 1470 Enea Circle, 2 nd Floor, July 8 McGill, Nejedly Concord 3:00 p.m. Thursday Board Meeting Board Room July 11 Board of Directors 2:00 p.m. Monday California Special Districts Association — Contra Central Contra-Costa Sanitary District July 15 Costa Chapter Meeting Multi Purpose Room 10:00 a.m. McGill Monday Budget and Finance Committee Meeting 1470 Enea Circle, 2 nd Floor, July 22 McGill, Nejedly Concord 3 :00 p.m. Thursday Board Meeting Board Room July 25 Board of Directors 2:00 p.m. Monday Budget and Finance Committee Meeting 1470 Enea Circle, 2" d Floor, July 29 McGill, Nejedly Concord 3:00 p.m. Unless otherwise noted, meetings are held at the District Office, 5019 Imhoff Place, Martinez, CA 5190113 Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 16, 2013 Subject. SET JUNE 20, 2013 AT 2 P.M. AS THE DATE AND TIME FORA PUBLIC HEARING TO RECEIVE COMMENTS ON THE DRAFT FISCAL YEAR (FY) 2013 -14 CAPITAL IMPROVEMENT BUDGET AND TEN -YEAR CAPITAL IMPROVEMENT PLAN Submitted By. Initiating Dept/Div.: Earlene Millier, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer b �6 D. Gemmell — Environmental Services Division Manager C. Swanson A. Antkowiak — Capital Projects Division Manager Provisional General Manager ISSUE: The District's draft FY 2013 -14 Capital Improvement Budget (CIB) and Ten - Year Capital Improvement Plan (CIP) has been prepared by staff. A date for a public hearing to receive comments on the document should be set. RECOMMENDATION: Set June 20, 2013 at 2 p.m. as the date and time for a public hearing to receive public comments on the draft CIB /CIP document, which includes the Equipment Budget and the Information Technology Plan. FINANCIAL IMPACTS: None related to this action. ALTERNATIVES /CONSIDERATIONS: The FY 2013 -14 CIB will establish project priorities and authorize budgets for the Treatment Plant, Collection System, General Improvements, and Recycled Water Programs. Contained within the General Improvements Program of the document are the Equipment Budget and the Information Technology Plan. Detailed information for projects that are anticipated to be active in FY 2013 -14 is presented in the CIB document. The 2013 Ten -Year CIP contains planned projects beginning with the FY 2013 -14 CIB and continuing for the following nine years and will provide the basis for policy decisions concerning the District's Capital Improvement Program and management of the Sewer Construction Fund. On April 11, 2013, District staff presented the draft CIB /CIP at a Board workshop. It is District practice to receive comments in a formal public hearing prior to consideration of the CIB /CIP, and the included Equipment Budget and Information Technology Plan, for approval. This public hearing is tentatively scheduled for the Board's regular meeting on June 20, 2013. A staff presentation will be made at that time. RECOMMENDED BOARD ACTION: Set June 20, 2013 as the date for a public hearing to receive public comments on the draft FY 2013 -14 CIB /CIP, which includes the Equipment Budget and Information Technology Plan. C:\ Users\ dandersonWppData\LocaMAicrosoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G\PP Set PH for 2013 -14 CIB -CIP 5 -16 -13 Draft.DOC Page 1 of 1 Central Contra Costa Sanitary District .d. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 16, 2013 Subject: SET PUBLIC HEARING ON JUNE 20, 2013 TO: (1) ADOPT THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE, DEBT SERVICE FUND, AND SELF - INSURANCE FUND BUDGETS; AND (2) ESTABLISH SEWER SERVICE CHARGE RATES FOR FY 2013 -14 AND FY 2014 -15 Submitted By. Initiating DeptJDiv.: Thea Vassallo, CPA, CMA Administrative / Finance & Accounting Finance Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION. I �► Alm C. Swanson Counsel for the District Provisional General Manager ISSUE: A public hearing is being scheduled to receive comment on the amount of Sewer Service Charges (SSC) to be imposed for Fiscal Year (FY) 2013 -14 and FY 2014 -15, and to receive public comment on the FY 2013 -14 Operations and Maintenance, Debt Service, and Self- Insurance Fund Budgets. RECOMMENDATION: Authorize a public notice to set a public hearing on June 20, 2013 to: (1) adopt the FY 2013 -14 Operations and Maintenance, Debt Service, and Self- Insurance Fund Budgets, and (2) establish the SSC rates to be imposed for FY 2013 -14 and FY 2014 -15. FINANCIAL IMPACTS: At the June 20, 2013 public hearing, the Board will be asked to consider a SSC rate increase of up to $34 for FY 2013 -14 and up to $34 for FY 2014- 15. Total additional revenues for FY 2013 -14 would be approximately $5.5 million if the staff proposed budget rate increase of $34 is implemented. ALTERNATIVES /CONSIDERATIONS: The Board could choose not to increase the SSC for FY 2013 -14 and the following year, or an alternative amount other than the $34. BACKGROUND: At the Board Financial Planning and Policy Workshop in January, and subsequent Board Meetings, staff reviewed the financial prudence of imposing a SSC rate increase of $34 for a total charge of $405 for FY 2013 -14. The increase mainly covers increases in salaries, retirement expenses including an additional $5.OM pay down of the unfunded pension liabilities, health insurance premiums, and provides significant additional revenue to the Capital Budget for repair and rehabilitation of the sewer system, renovation and upgrade of the treatment plant, and to meet new air and water quality regulations. C:\ Users\ danderson WppData\Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook\DVCG8C5G\Set Public Hearing on om ds si and ssc 5- 16- 13.doc Page 1 of 3 POSITION PAPER Board Meeting Date: May 16, 2013 subject: SET PUBLIC HEARING ON JUNE 20, 2013 TO: (1) ADOPT THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE, DEBT SERVICE FUND, AND SELF - INSURANCE FUND BUDGETS; AND (2) ESTABLISH SEWER SERVICE CHARGE RATES FOR FY 2013 -14 AND FY 2014 -15 The Operations and Maintenance Budget was distributed at the May 2, 2013 Board meeting and will be discussed at the May 16, 2013 Board meeting. The SSC increase of $34 allocates an additional $21 per RUE to Operations and Maintenance expenses for FY 2013 -14 and the remaining $13 increase to the Capital Improvement Budget. The Board approved a Proposition 218 Notice amount of up to $34 each for FY 2013- 14 and FY 2014 -15. A hearing is being set to receive comment on selecting the SSC rate to be imposed for FY 2013 -14 and FY 2014 -15. The Board will review and consider the District's proposed budget in the Spring of 2014 to determine whether the Board approved increase for FY 2014 -15 will continue to be necessary. These hearings are typically held during the Board Meeting at which the Operations and Maintenance Budget is presented for approval. Adoption of the FY 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget is scheduled for the Board meeting on June 20, 2013. RECOMMENDED BOARD ACTION: Set June 20, 2013 at 2:00 p.m. as the date and time for a public hearing to consider: (1) adopting the FY 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget, and (2) establishing the SSC rates to be imposed for FY 2013 -14 and FY 2014 -2015. A_ ttached Supporting Documents: 1. Notice of Public Hearing C:\ Users\ dandersonWppData\Local\MicrosoR \Windows \Temporary Internet Files \Content.Outlook\DVCG8C5G\Set Public Hearing on om ds si and ssc 5- 16- 13.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS. POSITION PAPER Board Meeting Date: February 21, 2013 Subject: AUTHORIZE THE SECRETARY OF THE DISTRICT TO PROVIDE PUBLIC NOTICE OF PROPOSED SEWER SERVICE CHARGE RATE INCREASES Submitted By: Initiating Dept ✓Div.: Thea Vassallo, CPA, CMA Finance Manager Administrative / Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: M. Scahill, Communication Manager A. Antkowiak, Capital Projects Division Manager T. Vassallo, Finance Manager 4�p- A K. Alm C. Swanson Counsel for the District Provisional General Manager ISSUE: To comply with Proposition 218 public notice requirements, the District must provide 45 days written notice to ratepayers prior to considering a proposed Sewer Service Charge rate increase at a public hearing. RECOMMENDATION: Authorize mailing a public notice of proposed Sewer Service Charge rate increases of up to $34 for Fiscal Year 2013 -2014, for a total of up to $405 per year effective July 1, 2013, and up to an additional $34 for Fiscal Year 2014 -2015, for a total of up to $439 per year effective July 1, 2014. FINANCIAL IMPACTS: The total cost of printing and mailing the public notice to District ratepayers is estimated to be approximately $50,000. ALTERNATIVES /CONSIDERATIONS: Forego a public notice and do not propose a Sewer Service Charge increase or notice an amount less than $34 per year. BACKGROUND: Proposition 218 requires written public notice of Sewer Service Charge increases, and the scheduled public hearing in addition to a required legal notice published in the newspapers. Compliance with Proposition 218 requires the District to provide at least a 45 -day notice to all rate paying property owners for a Sewer Service Charge rate increase. For.such notice to be given before the proposed June 6, 2013 Public Hearing, mailing preparations must begin by March 22, 2013 or the noticing will cost an additional $10,000. As discussed with the Board at the January 24, 2013 Financial Planning and Policy Workshop, based on the operations, maintenance, capital needs, mandated regulatory compliance, and prudent reserve levels, a Sewer Service Charge rate increase of up to $34 for each of the next two years was recommended by staff. The notice must specify the maximum amount of the increase and includes language indicating an amount of up to $34 per year for Fiscal Years 2013 -2014 and 2014 -2015. C: \Documents and Settings \cgee \Local Settings \Temporary Internet Files \Content.Outlook\4VS9801A \Sewer Service Charge Public Hearing 2 -21 -13 (3).doc Page 1 of 2 POSITION PAPER Board Meeting Date: February 21, 2013 Subject AUTHORIZE THE SECRETARY OF THE DISTRICT TO PROVIDE PUBLIC NOTICE OF PROPOSED SEWER SERVICE CHARGE RATE INCREASES The $34 increase each year for two years would be used for capital projects, higher energy costs, regulatory compliance, salary and benefit cost increases, and paydown of unfunded liabilities. A copy of the proposed public notice is attached for the Board's consideration. If the notice is authorized, the Board would consider setting the Sewer Service Charge rate at the Public Hearing on June 6, 2013. In order to comply with the Proposition 218 timeline and provide the 45 -day ratepayer notice, Board comments are requested on the proposed public notice and authorization is requested for mailing the public notice to residential and nonresidential customers. RECOMMENDED BOARD ACTION: Authorize the Secretary of the District to mail a public notice of proposed Sewer Service Charge rate increases of up to $34 for Fiscal Year 2013 -2014, for a total of up to $405 per year effective July 1, 2013, and up to an additional $34 for Fiscal Year 2014 -2015, for a total of up to $439 per year effective July 1, 2015. C1Documents and Settings \cgee \Local Settings \Temporary Internet Files \Content.Outlook\4VS980IA \Sewer Service Charge Public Hearing 2 -21 -13 (3).doc Il Central Contra Costa Sanitary District NOTICE OF A PUBLIC HEARING /COMPLIANCE WITH PROPOSITION 218 A proposed increase in your Annual Sewer Service Charge will be considered at a Public Hearing at 2 p.m. on June 6, 2013 at the Central Contra Costa Sanitary District Board Room, 5019 Imhoff Place, Martinez, CA 94553. Dear Property Owner and /or Customer: The Central Contra Costa Sanitary District (CCCSD) provides sanitary sewage collection and treatment, household hazardous waste disposal, and recycled water services in its central Contra Costa County service area. The District operates within an annual budget of approximately $100 million. CCCSD collects an annual Sewer Service Charge from each property connected to the sewer system. The current residential rate of $371 per year per single family unit is billed as a line item labeled "CCCSD SEWER CHG" on your Contra Costa County property tax bill. CCCSD also receives approximately $73 per residence each year from the County's property tax allocation which is used for operations, maintenance, and capital improvements. New State and Federal regulations involving water and air quality, additional testing, and treatment processes have financially impacted CCCSD and increased Operations and Maintenance costs. The CCCSD Board must therefore consider an increase in the annual Sewer Service Charge of up to $34 (9 cents per day) for Fiscal Year (FY) 2013 -2014 for a total of up to $405 per year effective July 1, 2013, and up to an additional $34 increase for FY 2014 -2015, effective July 1, 2014, for a total of up to $439 per year. FOR RESIDENTIAL CUSTOMERS, whether a single - family home, mobile home, townhouse, condominium, apartment, or other multi - family home, this would mean an increase in the Sewer Service Charge of up to 9.2% in the first year and up to 8.4% in the second year. FOR NONRESIDENTIAL CUSTOMERS, the service charge rates are calculated for each customer group based on the cost to provide service, considering both the quantity of sewage discharged and other sewage characteristics affecting the cost for treatment. The service charge increases being considered for this category are shown on the reverse side of this notice. The District operates under a 10 -Year Business Plan (Plan), developed by staff and updated annually. The Plan documents CCCSD operations, maintenance, facility needs, their associated costs, and the needed revenue for the District to meet its regulatory requirements and fiscal responsibilities. A failure to meet the regulatory requirements could impact CCCSD's mission to protect public health and the environment and result in fines imposed by state and federal regulators that could run into the millions of dollars. In the next decade, the District faces expenditures of approximately $422 million in Capital Projects for rehabilitation and replacement of CCCSD's 1,500 -mile sewer system, mandatory upgrades to the treatment plant, general improvements to buildings and vehicles, and continuation of the recycled water program. The remaining operations and maintenance expenditures include normal costs and reductions in the unfunded liability of retirement and healthcare costs. Based on the results of the Plan, the proposed increases would allow CCCSD to meet its current regulatory and financial requirements. NOTICE IS HEREBY GIVEN that the Board of Directors of the Central Contra Costa Sanitary District will hold a PUBLIC HEARING on this matter in the CCCSD Board Room, 5019 Imhoff Place, Martinez, California, on Thursday, June 6, 2013 at 2:00 p.m., at which time and place interested persons may appear and be heard. Only written and signed protests of property owners or customers that include the writer's address are to be counted to determine whether a majority protest to the proposed rate increases exists. Property owners or tenants can mail their protests to the Secretary of the District at 5019 Imhoff Place, Martinez, CA 94553; hand - deliver them to the Reception Desk at 4849 Imhoff Place; fax them to (925) 676 -7211; or e-mail a written, signed protest in PDF format to eboehme @centralsan.org. Protests must be received before the Public Hearing ends. A copy of the CCCSD Board Policy on filing a protest can be found on the CCCSD website at www.centralsan.org. Questions about the proposed Sewer Service Charges can be directed to CCCSD's Information Line by calling (925) 335 -7702 or by e- mailing rates@ centralsan.org. Notice mailed by April 22, 2013 CURRENT & PROPOSED SEWER SERVICE CHARGE RATES FOR NONRESIDENTIAL CUSTOMERS USER GROUP CURRENT RATE MAXIMUM PROPOSED RATE. EFFECTIVE JULY 1, 2013 MAXIMUM PROPOSED RATE EFFECTIVE JULY 1, 2014 Commercial and Other Non - Industrial Customers (per Hundred Cubic Feet (HCF)) Bakeries $9.48 $10.35 $11.22 Supermarkets with garbage disposals $7.16 $7.82 $8.47 Mortuaries $6.75 $7.37 $7.99 Restaurants $7.03 $7.67 $8.32 Others $3.44 $3.76 $4.07 Minimum Annual Charge $385.00 $420.00 $456.00 Industrial Customers Flow (per HCF) $1.42 $1.55 $1.68 Biochemical Oxygen Demand (per thousand pounds) $789.00 $861.00 $934.00 Suspended Solids (per thousand pounds) $564.00 $616.00 $667.00 Demand (per HCF in peak month) $170.08 $185.67 $201.25 Minimum Annual Charge $385.00 $420.00 $456.00 Determined Determined Determined Special Discharge Permits and Contracts individually individually individually Notes: A nonresidential customer's annual sewer service charge is determined by multiplying the appropriate user group rate times the annual wastewater discharge volume measured in HCF (Hundred Cubic Feet), usually estimated from the property's water use. For example, a bakery discharging 250 HCF per year would pay an annual sewer service charge at the July 1, 2013 proposed rate calculated as follows: ($10.35 per HCF) x (250 HCF per year) = $2,587.50 Alternatively, for 2013 -14 you can estimate your annual sewer service charge by multiplying the amount listed beside "CCCSD SEWER CHG" on your 2012 -13 property tax bill by 1.09. If you are billed directly, multiply the amount on the 2010 -11 invoice by 1.09. For a 2012 -13 estimate, multiply by 1.18. If you have questions regarding the Sewer Service Charge program, or would like us to calculate a property - specific estimate of the sewer service charge for 2013 -2014 and 2014 -2015, please send an e-mail request including your name, Assessor's Parcel Number, address and phone number to ratesOcentralsan.org, or call the District's Environmental Services Division at (925) 335 -7739. Additional information is available on the District's website: www.centralsan.org. NOTICE OF PUBLIC HEARING ON THE DRAFT FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET AND 2013 TEN -YEAR CAPITAL IMPROVEMENT PLAN AND BOARD ACTION TO INCLUDE THE DRAFT CIB IN THE 2013 -14 DISTRICT BUDGET NOTICE IS HEREBY GIVEN THAT: The Board of Directors of the Central Contra Costa Sanitary District at its regular meeting at 2 p.m. on Thursday, June 20, 2013, at the Meeting Room of the District Office, 5019 Imhoff Place, Martinez, California, will hold a public hearing on the draft Fiscal Year 2013 -14 Capital Improvement Budget and 2013 Ten - Year Capital Improvement Plan. The Board will then consider approving the draft CIB for inclusion in the 2013 -14 District Budget. The draft 2013 Capital Improvement Plan forecasts expenditures of $365 million (2013 dollars) over the next ten years. Adoption of the draft Capital Improvement Budget would authorize $29.6 million for planning, design, and construction of projects listed in the budget document that are active in the 2013 -14 fiscal year. The draft document is on file with the Secretary of the District and is available for public inspection at the District Office, 4849 Imhoff Place, Martinez, California. /s/ Elaine R. Boehme Elaine R. Boehme Secretary of the District Central Contra Costa Sanitary District Contra Costa County, California PUBLISH: June 10, 2013 NOTICE OF PUBLIC HEARING ON THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET, AND THE SELF - INSURANCE FUND BUDGET AND TO CONSIDER CHANGES TO SEWER SERVICE CHARGE RATES NOTICE IS HEREBY GIVEN THAT: The Board of Directors of the Central Contra Costa Sanitary District (District) at its regular meeting at 2 p.m. on June 20, 2013, in the Meeting Room of the District Office, 5019 Imhoff Place, Martinez, California, will hold a public hearing to consider the following matters: 1. Adopting the Fiscal Year 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget; and 2. Establishing a proposed Sewer Service Charge increase of up to $34 for Fiscal Year 2013 -14 for a total charge of up to $405 and up to an additional $34 for Fiscal Year 2014 -15 for a total charge of up to $439. /s/ Elaine R. Boehme Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District Contra Costa County, California Dates of Publication: June 6 and June 13, 2013 NOTICE OF PUBLIC HEARING ON THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET, AND THE SELF - INSURANCE FUND BUDGET AND TO CONSIDER CHANGES TO SEWER SERVICE CHARGE RATES NOTICE IS HEREBY GIVEN THAT: The Board of Directors of the Central Contra Costa Sanitary District (District) at its regular meeting at 2 p.m. on June 20, 2013, in the Meeting Room of the District Office, 5019 Imhoff Place, Martinez, California, will hold a public hearing to consider the following matters: Adopting the Fiscal Year 2013 -14 Operations and Maintenance Budget, Debt Service Fund Budget, and Self- Insurance Fund Budget; and 2. Establishing a proposed Sewer Service Charge increase of up to $34 for Fiscal Year 2013 -14 for a total charge of up to $405 and up to an additional $34 for Fiscal Year 2014 -15 for a total charge of up to $439. /s/ Elaine R. Boehme Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District Contra Costa County, California Dates of Publication: June 6 and June 13, 2013