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HomeMy WebLinkAboutBOARD MINUTES 08-06-98 178 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 6, 1998 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 501 9 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on August 6, 1998. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Lucey, Menesini, Hockett, Boneysteele, Nejedly ABSENT: Members: None 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR .It was moved by Member Menesini and seconded by Member Lucey, that the Consent Calendar, consisting of Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Quitclaim Deed was approved to Gene F. Gould and Mary D. Gould, Trustees, Job 1571, Orinda area; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed; and Resolution No. 98-076 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly None None b. Grant of Easement from East Bay Regional Park District across Martinez Regional Shoreline, Martinez Eastside Trunk Sewer Improvement, DP 4950, was approved; the President of the District Board of Directors was authorized to accept and execute said Grant of Easement; staff was authorized to record said Grant of Easement; and Resolution No. 98-077 was adopted to that effect; and Quitclaim Deed to East Bay Regional Park District, Job 2856, was approved; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed upon completion of the 24-inch trunk sewer; and Resolution No. 98-078 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly None None 08 06 98 179 c. Quitclaim Deeds were approved to Country Club Estates, LLC and Sandra P. Sinn, Job 5072; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deeds; and Resolution Nos. 98-079 and 98-080 were adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None d. A public notice was authorized, advising that documentation used in the determination of the appropriations limit shall be available fifteen days prior to the Board Meeting to be held on September 3, 1998, at which the appropriations limit for the Sewer Construction Fund for the fiscal year 1998-1999 will be established. Motion unanimously approved on the following vote: AYES: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None e. Resolution No. 98-081 was adopted, directing that the 1998-1999 yearly installments of assessments for contractual assessment districts be collected on the County tax roll. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly None None 4. HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER PLACING DELINQUENT CONNECTION FEES ON THE PROPERTY TAX ROLL FOR APN 273-063-018-9.55 LONGRIDGE ROAD IN ORINDA. CALIFORNIA: ADOPT RESOLUTION TO PLACE DELINQUENT FEES ON THE 1998-1999 TAX ROLL Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the position paper fairly represents the staff position on this matter at this time. Mr. Dolan asked that District Counsel deal with the issue of process since the last time this matter appeared before the Board and the Board authorized the collection of the unpaid fees through Small Claims Court. Mr. Kenton L. Aim, Counsel for the District, stated that the matter now before the Board for consideration is an alternative process to pursuing collection of delinquent fees through Small Claims Court. When this matter came before the Board several months ago, the Board authorized staff to file a Small Claims Court action because the expectation was that the property would change hands. If the delinquent charge is for a prior owner rather than the current owner, it is handled differently. Mr. Aim stated that having said that, it has come to the attention of staff that the property has not been sold. This is the appropriate time of year when the District's places delinquent fees on the County tax roll. Notice was provided to the property owner, Michael Gonce. Mr. Gonce has written a 08 06 98 180 letter to this District dated August 3, 1998. Copies were distributed to the Board. Mr. Aim stated that in his letter, Mr. Gonce asserts that he received only six days notice rather than ten days, and asks that the public hearing be changed to a different date when he can attend. Mr. Gonce also asserts that since the District has had to wait for two years, it can certainly wait longer. Mr. Aim stated that the Board can proceed today, but the Board may schedule an additional hearing for Mr. Gonce if the Board feels that is appropriate. It is now the deadline for placing items on the County tax roll, but items on the tax roll can be changed or removed at a later date if the Board feels that is appropriate. Mr. Aim stated that adequate notice was provided in the statutory sense. In addition, the District Code has a general provision that says when notice is required and there is no time period listed in the Code, ten days notice shall be given with an additional five days for mailing. The staff position is adequate notice has been given. The act which would trigger the additional five days will not occur for months when the tax roll goes out. If the Board does delay the hearing as requested by Mr. Gonce, additional penalty and interest would accumulate at the rate of 1.5 percent per month as provided by statute. Mr. Jay S. McCoy, Environmental Services Division Manager, reviewed the time line relating to recent actions on this matter beginning in January 1 998 with the field check which identified the problems and proceeding through written notices in January and February 1998, Board authorization to file suit in Small Claims Court in May 1998, and finally the notice of this hearing. At 2: 15 p.m., President Nejedly opened the public hearing to receive public comments on placing delinquent connection fees on the property tax roll for APN 273-063-018-9, 55 Longridge Road in Orinda, California. Mr. Michael Gonce, 401 Barrett, Richmond, California, addressed the Board, requesting that this matter be postponed for at least two weeks to a time more convenient for him, and stating that the District failed to provide sufficient notice of this hearing. Mr. Gonce stated that he did not have adequate time to prepare and did not have due process. Mr. Gonce stated that in addition, there is an issue with regard to the statute of limitations in Small Claims Court and that this matter would be thrown out. Mr. Gonce stated that he did pay fees to Roto-Rooter when the connection was made. Mr. Gonce stated further that getting a letter assessing fees and penalties two years after the house was built is unjust. He compared the timelines of the District's actions to the regulations pertaining to Mechanics liens. Discussion followed with regard to the process and the way it is communicated to someone coming into the District for a permit. Mr. Dolan stated that the issue is very clear. Mr. Gonce is illegally connected to the sewer system without paying the connection fees. It is recommended that the Board take action to place the delinquent connection fees on the County tax roll for collection. If the Board feels there is a need for an additional hearing, that could be scheduled. Mr. Aim, Counsel for the District, stated that the reference to the mechanic's lien statute does not apply to public agencies. This matter is not beyond the statute of limitations and could be considered in Small Claims Court. Adequate notice was provided. Further discussion followed with regard to the consequences of postponing this matter, alerting potential buyers of this dispute pending against the property, and describing the stamps placed on Mr. Gonce's plans indicating that fees must be paid and the line inspected before connection can occur. There being no further comments, President Nejedly closed the public hearing at the hour of 2:40 p.m. It was moved by Member Hockett and seconded by Member Lucey, that Resolution No. 98-082 be adopted, to place delinquent connection fees in the amount of $3,706.93 for APN 273-063-018-9, 55 Longridge Road, Orinda, property owned by Michael E. Gonce, on the County tax roll for collection. Motion unanimously approved on the following vote: 08 06 98 181 AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly None None b. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AN ORDINANCE TO AMEND THE DISTRICT CODE ADDING CHAPTER 6.40 HAZARDOUS WASTE HANDLING AND DISPOSAL CHARGES FOR CATEGORICALLY EXEMPT SMALL QUANTITY GENERATORS Mr. Dolan, General Manager-Chief Engineer, stated that today is another important milestone in the successful implementation of the District's Household Hazardous Waste (HHW) Collection Facility. While the residential HHW collection program has been operating since October 1997, the small quantity generator program didn't begin until April 1998. This program has been coordinated with the District's partners in the HHW Collection Facility, Mt. View Sanitary District and the Cities of Concord, Clayton, and San Ramon. The HHW Collection Facility has been collecting charges since the small quantity generator program began in April 1998. During that time approximately $2,100 has been collected. Business has not been brisk because this program has not been advertised. The revenue collected represents about 21 cars at $100 each. Since the charges are calculated only to be a reimbursement for out-of-pocket expenses associated with the service, they were implemented at the staff level. Now, to ensure that all appropriate procedures are followed, it is appropriate to ask the Board to review and set the charges. Mr. Dolan introduced Mr. Tim Potter, Source Control Program Superintendent, who reviewed the services offered to small quantity generators who choose to participate in the District program. Wastes similar to the household hazardous waste accepted from residences is accepted. Unknown items are not accepted. There are two differences between the small business program and the residential program: 1) businesses are expected to make an appointment; and 2) fees are assessed. The District's program is intended to provide services to businesses not already adequately serviced by other vendors. It is not intended to displace other services but to give small businesses an option for proper management of these wastes. Mr. Potter described the packaging methods used within the HHW Collection Facility including bulking, loose pack, and lab pack. The packaging method has a direct bearing on the charges because the District is charged per unit sent off site by the service provider no matter how much or how little is in the container. Mr. Potter reviewed the calculation of the proposed charges for small quantity generators as follows: . Capital, labor, and operating costs are included in the Sewer Service Charge . Recommended small quantity generator charges recover the incremental cost of disposal/recycling . Calculation is based on packaging method and disposal costs . Effect of packaging method on proposed charges: Bulked wastes - actual volume of hazardous waste delivered Loose packed and lab packed wastes - container volume of hazardous waste delivered Mr. Potter reviewed the schedule of proposed rates and noted the two changes on page 2 under "Reactives," from the copy provided in the Board packet. Discussion followed with regard to making this a more viable and usable service, and generating customers to allow the facility to make a profit. Mr. Potter stated that the contract with the District's partners in the HHW Collection Facility states that small quantity generators who participate in the program will be charged. Some cities have a high population base with very little commercial base. If other communities with a higher 08 06 98 182 commercial base send more waste, they would pay a smaller share. On the other hand, Mr. Potter stated that there would be significant budget implications if no fees were charged. Because it is not intended that the program make a profit, it is competitive for those who have an intermittent waste stream or who generate small quantities. At 3: 18 p.m., President Nejedly opened the public hearing to receive public comments regarding adoption of an ordinance setting hazardous waste handling and disposal charges for conditionally exempt small quantity generators. There being no comments, the public hearing was closed. It was moved by Member Hockett and seconded by Member Lucey, that Ordinance No. 2.Q6 be adopted as amended, amending the District Code adding Chapter 6.40 Hazardous Waste Handling and Disposal Charges for Conditionally Exempt Small Quantity Generators. Motion unanimously approved on the following roll call vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly None None The Board thanked staff for the informative presentation and underscored the need to get the word out on this program. c. CONTINUE PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND THE DISTRICT CODE ADDING SECTION 6.20.300 SCHEDULE OF REIMBURSEMENT FEES. AND TO ESTABLISH REIMBURSEMENT FEES FOR PROPERTY TO BE SERVED BY THE DOUGHERTY VALLEY TUNNEL AND TRUNK SEWERS TO SEPTEMBER 3. 1998 It was moved by Member Menesini and seconded by Member Lucey, that the public hearing to receive comments on the proposed ordinance to amend the District Code adding Section 6.20.300 Schedule of Reimbursement Fees and to establish reimbursement fees for property to be served by the Dougherty Valley Tunnel and Trunk Sewers, be continued to September 3, 1998. There being no objection, the motion was unanimously approved. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. John Shannon, of Shannon Associates, who provided an overview of the recruitment process for the General Manager position. Mr. Shannon reviewed the tasks and the recruitment schedule. To develop the candidate profile, Mr. Shannon proposed meeting individually with each Board Member and conducting focus groups with the District's management staff in August 1998. The input received would be incorporated into a draft candidate profile which would be presented to the Board for input, modifications, and final approval at the September 17, 1998 Board Meeting. In order to advertise in key technical publications, Mr. Shannon proposed that the advertisement text be reviewed by the General Manager-Chief Engineer and Human Resources Manager, and that the ads be placed prior to final Board approval of the candidate profile. Following discussion, the Board endorsed the proposed process and recruitment schedule. 2) Mr. Dolan, General Manager-Chief Engineer, stated that the District, in response to state and federal mandates and initiatives, has instigated 0 .""";' .~ 06 98 183 several programs to limit the discharge of offensive materials into the sewer system over the past 20 years, the first of which was the Pretreatment/Source Control Program for industrial dischargers and the most recent of which is the Household Hazardous Waste Collection Program. In recent years the Board has been given a comprehensive annual report of ongoing Pollution Prevention Programs. The main contaminants of concern to the District are insecticides that can cause toxicity in our effluent: namely, diazanon and dursban (chlorphyrofos); and metals: mercury, copper, silver, nickel, chromium, and lead. A presentation has been prepared to respond to the Board's request for more information about these pollution prevention efforts. Mr. Dolan introduced Mr. Bart Brandenburg, Pollution Prevention Program Superintendent, who provided an overview of the District's pollution prevention activities, many of which are cooperative programs with other agencies. These activities include: . Traditional source control activities dealing with small businesses and significant users; . Product bans including copper sulfate root killer and tributaltin- containing cooling tower additives; . Household Hazardous Waste Collection Facility which has processed approximately 700,000 pounds of household hazardous waste in its first eight months of operation; . Clean Water Program-Stormwater Inspection (Illicit Discharge Elimination Program), a joint sewer and storm drain inspection program which will inspect 400 small businesses in 1998; . Green Business Program which recognizes small businesses for outstanding pollution prevention efforts; . Integrated Pest Management Partnership which promotes less toxic products and provides an alternative way to get the water quality message out; . Pollution Prevention Awards Program which recognizes small and large businesses for their commitment in preventing pollution; . Student Education Programs including the Sewer Squad, Newspapers in Education, Kids in Gardens, Heather Farm's 3 R's, Student Plant Tour, and various classroom presentations; . Community Newsletter; . Community Outreach Events such as environmental events, chamber trade shows,. and teacher appreciation events; and . District Web Site. Mr. Brandenburg introduced Mr. Charles W. Batts, Director of Engineering, to report on the effectiveness of these pollution prevention activities. Mr. Batts stated that there are many programs aimed at stopping pollutants before they get to the Treatment Plant. The question is how effective are these efforts. There is a great deal of both soft and hard data. Soft data is more difficult to define and quantify, but it includes such things as public opinion polls and changes in attitude. Hard data is based on defined physical measurement such as chemical tests, sample points, and the nature and time of the tests. To gage the effectiveness of pollution prevention efforts, both the local impact and regional impact should be considered. 08 06 98 184 08 Mr. Batts stated that the tools which generate soft data include education programs, training, literature, advertisements, newsletters, and the web site. The goal of these efforts is to change attitude, actions, and behaviors through information. The programs include public and school education programs, employee training programs, and the Household Hazardous Waste Collection Facility. The effectiveness of these programs is evaluated through questionnaires, anecdotal comments, surveys, and statistical tools. The soft data by which the effectiveness of these pollution prevention activities can be gaged is as follows: . Student education programs reached over 8,000 students and 350 teachers in 1997-1998; . Teacher evaluations and test results indicate student understanding of pollution prevention; . Four issues of the community newsletter was sent to 120,000 residents and businesses; . Recent survey results indicate further interest in pollution prevention issues; and . The District web site received 350 "hits" per month on information about the District. Mr. Batts stated that the tools which generate hard data include chemical monitoring and analysis, toxicity testing, inspection programs, and the like. The objectives of these efforts are to develop data, define the physical problem or success, ensure compliance, and promote understanding of the impacts of various actions. The programs include source control monitoring and inspection, compliance monitoring and testing, and the Regional Monitoring Program. The results of these programs are evaluated through compliance monitoring, chemical analysis, the Regional Monitoring Program, and statistical tools. Mr. Batts stated that effluent toxicity data shows dramatic results from pollution prevention activities. Increased chemical data is being developed now. The hard data supporting the effectiveness of these programs as they relate to pollutants of concern for the District is as follows: . Silver influent concentrations show a significant downward trend; . Publicly owned treatment works (POTWs) have reduced metals, including copper, through source control and pollution prevention; . Copper in the receiving waters exceeds the Environmental Protection Agency (EPA) water quality criteria; . Point sources are not the main contributors of copper; and . Environmental risk from copper seems slight. With regard to pesticides, Mr. Batts stated that hard data shows that: . Certain segments of the receiving waters exceed the EPA water quality criteria and demonstrate toxicity; . POTWs are minor sources of pesticides; . Pesticides are a good target for pollution prevention activities; and . Environmental risk is unknown. 06 98 185 In summary, Mr. Batts stated that: . Pollution Prevention is a long-term strategy to deal with pollutants at their source. . Pollution Prevention activities are now part of the regulatory process. . Pollution Prevention activities can be an acceptable alternative to costly treatment processes. . Pollution Prevention activities cover a broad spectrum of programs. . Pollution Prevention requires regional focus and interagency cooperation to be successful. . The success of Pollution Prevention efforts is not always easily measured. . Pollution Prevention programs have a successful history. Mr. Dolan stated that the California Toxics Rule has not been implemented. POTWs may be looking at having to comply with additional requirements in the future. It will be important for the regulators to consider the marginal benefit compared to the marginal cost when approving products. Sometimes it is better to take a product off the market than to spend the money to keep it out or to take it out of the environment. Member Menesini stated that this points out the essential need for adequate laboratory equipment and environment to measure these small quantities. Member Menesini thanked Laboratory Superintendent Bhupinder Dhaliwal, Associate Engineer Don Berger, and Capital Projects Division Manager Bill Brennan for the excellent tours of the San Jose and East Bay Municipal Utility District laboratories. Member Menesini stated that it is remarkable that answers can be found to these environmental problems. 3) Mr. Dolan, General Manager-Chief Engineer, stated that the Dougherty Tunnel Project has been progressing. The three-party agreement for cost reimbursement has been signed. Rates and charges for reimbursement to partially compensate the construction party will be presented to the Board for consideration in the near future. When the technical side of the Dougherty Tunnel Project was last discussed with the Board, the Board was told that two options were being considered and that they had differing costs and maintenance characteristics. Mr. Dolan introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who reported on the status of the Dougherty Tunnel and Truck Sewers Project design. Mr. Miyamoto-Mills stated that the cost reimbursement agreement with the developers has been signed. In June 1998, the Board authorized design contracts with Brown and Caldwell for the trunk sewer and Woodward Clyde for the tunnel. The developers are required to pay for all costs. To date, the District has received $240,824 which covers current costs through June 1998. The District is billing the developers monthly for costs incurred. Design kick off occurred in mid-June 1998. The design team is now considering alignment and configuration options. Design is expected to be completed by March 1999. Mr. Miyamoto-Mills used a map to show the location of the tunnel and trunk sewer to the San Ramon (Larwin) pumping station. Mr. Miyamoto-Mills showed a profile section of the tunnel which will start at Old Ranch Road and end at Alcosta. At its deepest point, the tunnel will be about 300 feet deep, and it is about 5,000 feet long. Mr. Miyamoto-Mills described the two options for the tunnel, one which has a smaller pipe and a walkway and the other which has a larger pipe with one or two smaller pipes placed parallel to the main pipe and surrounded by grout. The second 08 06 98 186 option is approximately $4 million less; and for that reason, it is the design team's recommended option at this point. Mr. Dolan stated that final decisions on design details have not been made but when the rates are presented to the Board for consideration, they will be based on the lower cost option. Following discussion of renting space in the tunnel to other utilities, the Board thanked Mr. Miyamoto-Mills for his presentation. BREAK At 4: 15 p.m., President Nejedly declared a recess, reconvening at the hour of 4:30 p.m., with all parties present as previously designated. 0 8"'~ ." 4) Mr. Dolan, General Manager:.Chief Engineer, introduced Mr. William E. Brennan, Capital Projects Division Manager, who distributed a South Orinda Sewer Improvement Project status report including project information current as of August 5, 1998. Mr. Brennan stated that a time extension to January 22, 1 999 was granted to the contractor due to delays caused by weather conditions and changed site conditions. Mr. Brennan stated that it is still hoped that the project can be finished by the end of the calendar year. The contractor, Mountain Cascade, is very interested in getting out of Orinda as quickly as possible. Four machines, three mircrotunneling machines and one conventional tunneling machine, should be operating by mid-August. This week East Bay Municipal Utility District (EBMUD) started installing a 12-inch waterline along Moraga Way from Glorietta Boulevard to Brookside Road, by open cut trenching method. Mr. Brennan stated that before EBMUD started its work, District staff expressed concerns with traffic problems to the City of Orinda and to EBMUD. As a result, it appears at this time that EBMUD will only install the waterline at the Glorietta intersection and postpone the remaining work to a later date. Mr. Brennan showed slides of various sites, indicating work in progress and restoration. 5) Mr. Dolan, General Manager-Chief Engineer, stated that since the last Board Meeting, the results of the values discussion at the last Strategic Planning Session and Board Meeting have been compiled, and a committee of managers has prepared a draft of a vision statement. Mr. Dolan reviewed the purpose of the Strategic Planning effort and described progress made to date in the Strategic Planning process. Mr. Dolan stated that he hopes this process will allow us to build some Board/staff alignment for the future period of transition. The Board has adopted a revised mission statement eliminating responsibility for solid waste and adding responsibilities for recycled water and household hazardous waste. Mr. Dolan stated that one of the outcomes of the last Strategic Planning session with the Board and the managers was development of a draft list of values. Mr. Dolan reviewed them and requested approval to take the draft values statement to employees. This will then be brought to the Board for final consideration at the last Strategic Planning session on September 25, 1998. The Board agreed that the draft values be reviewed with employees. Mr. Dolan described the guidelines for preparing a vision statement. Mr. Dolan reviewed the draft vision statement and requested input from the Board. Following Board discussion, it was the consensus of the Board that the draft vision statement be revised to read: "Being acknowledged by our community and our peers as being highly responsive, effective, and efficient." Member Boneysteele stated that he was very impressed with the ground rules adopted by the Board and managers at the Strategic Planning sessions, as values for conducting discourse between Board Members and between ()6 98 7) 8) 9) 10) 11 ) 12) 187 employees and the Board. Member Boneysteele stated that he would recommend that the ground rules be formalized as the policy of the District. Member Boneysteele stated further that he is very impressed with the work that the District's consultants, Howard and Sue Lamb, have been doing. Tangible results can be seen. Mr. Dolan stated that several of the Board's managers would agree that those protocols are in a set of issues that would probably for appropriate for discussion with the Board in a workshop session. At one time it was thought that things like Board protocol issues could be the subject of a workshop sometime in the Fall. Mr. Dolan stated that he would put the issue on a future General Manager-Chief Engineer's report. 6) Mr. Dolan, General Manager-Chief Engineer, announced that there have been some scope changes in the design of the Fairview/Maltby Pumping Stations Improvements Project. At the last Board Meeting, the Board was advised that this project would be advertised and that the engineer's estimate was $80,000. Pumps will be replaced at both pumping stations. The old pumps will be retained as backups. In addition, the piping will be replaced at Fairview to avoid a repeat of the recent header failure at Maltby. The revised engineer's estimate for this increased scope of work is $120,000. Mr. Dolan, General Manager-Chief Engineer, announced that the Central Contra Costa Solid Waste Authority (CCCSWA) has dropped its pursuit of further payments from the District with regard to disbursal of surplus Acme Landfill litigation funds. Mr. Dolan, General Manager-Chief Engineer, announced that the District is advertising for bids for the Ash Handling Project. The engineer's estimate for the work is $1.15 million. Mr. Dolan, General Manager-Chief Engineer, stated that in 1994 Contra Costa County issued several hundred million dollars in non-tax-exempt bonds. The proceeds were used to buy down the County's unfunded liability in the County Retirement Fund. The County was able to catch a low point in the interest rate and reduce their annual cost for retirement expense. Mr. Dolan stated that last spring, anticipating a favorable trend in interest rates, he raised the possibility of having the District do the same thing in 1998. Controller Debbie Ratcliff and Accounting Supervisor Colette Curtis-Brown have investigated the matter. We expect to learn the amount of the District's unfunded liability later this month. Staff would then propose that a Board Budget and Finance Committee meeting be held to consider potential savings if any are identified. Mr. Dolan, General Manager-Chief Engineer, announced that the $3.1 million retirement cost for 1998-1999 has been prepaid to Contra Costa County. The County will credit the District with 8.25 percent interest. The District receives approximately 5.2 percent to 5.5 percent on recent investments of our reserves. The net savings is over $160,000. This item will be one of the Success Sharing ideas which will come to the management group for evaluation in the next few weeks. Mr. Dolan, General Manager-Chief Engineer, announced that the Sonnenberg claim for damages in the amount of $9,160 has been settled for $7,700. Mr. Dolan, General Manager-Chief Engineer, announced that bills have been mailed to the District's partners in the Household Hazardous Waste Collection Facility (Mt. View Sanitary District, and the Cities of Concord, Clayton, and San Ramon). The amount is slightly less than was expected last Spring. No adverse reaction has been received. 08 06 98 188 b. c. d. 4) 5) COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, reported that Doug Lomow and Robert Sliepka, former owners of Orinda-Moraga Disposal Service, have pled guilty to federal felony charges including money laundering and evasion of taxes through sham businesses and false bills. Both Lomow and Sliekpa face prison terms and large fines. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, announced that the deadline for filing for election to the District Board of Directors is August 7, 1 998 at 5:00 p.m. To date, Board Members Parke L. Boneysteele and Gerald R. Lucey have filed. BOARD MEMBERS 1 ) Member Menesini and General Manager-Chief Engineer Dolan reported on the July 20, 1998 Contra Costa Special Districts Association meeting where topics of discussion included Local Agency Formation Commission (LAFCO) and development activity in East Contra Costa County, review of pending legislation, report of oversight of County Treasurer activities, the failure of the County Charter, and a presentation on best business practices by Linda Best, Executive Director of Contra Costa Economic Partnership. 2) Member Menesini announced that at the last Environmental Alliance meeting a legislative update was presented by Mr. Dan McCarroll, the CALFED Legislative Coordinator. 3) Member Menesini reported that the tours of the San Jose and East Bay Municipal Utility District laboratories were very informative. Member Menesini thanked and commended Laboratory Superintendent Bhupinder Dhaliwal, Associate Engineer Don Berger, and Capital Projects Division Manager Bill Brennan for the excellent tours. Member Menesini announced that at the upcoming Environmental Alliance meeting scheduled for August 17, 1998 at noon at the John Muir Home, the Bay Area Air Quality Management District Chief of Education and Public Relations will discuss "Save the Air." Anyone interested is invited to attend. Member Hockett reported on the July 23, 1998 Sanitation and Water Agencies of Contra Costa County meeting held at Ironhouse Sanitary District. The main topic of discussion was the Delta Science Center. President Nejedly reported that the next Sanitation and Water Agency meeting will be held at Central Contra Costa Sanitary District on October 29, 1998. 7. ENGINEERING ADOPT A RESOLUTION OF INTENTION TO UNDERTAKE A DEMONSTRATION PROJECT DESIGNATING CHARLES HILL CIRCLE AS CONTRACTUAL ASSESSMENT DISTRICT NO. 98-2 FOR THE PURPOSE OF INSTALLING SEWER IMPROVEMENTS a. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT AS A DEMONSTRATION PROJECT FOR PROPERTIES ON HAVEN LANE IN WALNUT CREEK b. Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Jay S. McCoy, Environmental Services Division Manager, who recapped the Contractual Assessment District (CAD) projects undertaken to date and the estimated costs of each. Mr. McCoy stated that $260,000 was budgeted in the 1998-1999 Capital Improvement Budget for CAD projects. 08 06 98 189 It is estimated that a total of $645,000 may be spent this fiscal year for current and future CAD projects under discussion. Mr. McCoy stated that CAD projects are an effective way of providing sewer service and the District is reimbursed for the costs plus interest. The final decision with regard to the CAD projects undertaken and the amount of money used for this purpose, rests with the Board. In the discussion that followed, the Board endorsed the CAD concept; and noted that in future years, there will be fewer CAD projects as failing septic tanks are eliminated and the District will be receiving reimbursements from existing CAD projects. It was moved by Member Hockett and seconded by Member Menesini, that Resolution No. 98-083 be adopted, A Resolution of Intention to Undertake a Demonstration Project Designating Charles Hill Circle as Contractual Assessment District No. 98-2 for the Purpose of Installing Sewer Improvements; and that the formation of a CAD consisting of 12 properties on Haven Lane in Walnut Creek be authorized, and that staff be directed to begin processing said CAD as a demonstration project. Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None 8. APPROVAL OF MINUTES a. MINUTES OF REGULAR MEETING OF JULY 2. 1998 b. MINUTES OF ADJOURNED REGULAR MEETING OF JULY 14. 1998 It was moved by President Nejedly and seconded by Member Hockett, that the minutes of the regular meeting of July 2, 1998 and the minutes of the adjourned regular meeting of July 14, 1998, be approved as presented. There being no objection, the motion was unanimously approved. 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED AUGUST 6. 1998 It was moved by Member Boneysteele and seconded by President Nejedly, that the Expenditure List dated August 6, 1998, including Self-Insurance Check Nos. 101464- 101465, Running Expense Check Nos. 111986-112342, and Sewer Construction Check Nos. 20033-20083, be approved as recommended. There being no objection, the motion was unanimously approved. 10. BUDGET AND FINANCE a. RECEIVE FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30. 1998 Ms. Deborah Ratcliff, Controller, provided an overview of the financial results of District operations for the fiscal year ended June 30, 1998. Ms. Ratcliff stated that these results are preliminary and a more detailed report will be presented to the Board after the completion of the annual audit. Ms. Ratcliff provided a brief report on operations and maintenance revenues, expenses, and reserves for the fiscal year ended June 30, 1998. Actual revenues of $29,600,000 were $699,000 grea~er than budget, representing a 2.4 percent favorable variance. Actual expenditures of $29,658,000 were $288,000 greater than budget, representing a 1.0 percent unfavorable variance. As a result, reserves will increased by $411,000, resulting in a fund balance of $7,583,000 at June 30, 1998. Mr. Ratcliff reported that the Self-Insurance Fund actual revenues of $1,336,000 were $453,000 greater than budget, representing a 51 percent favorable variance. Actual 0 (¡).' () 06 98 190 expenditures of $681,000 were $202,000 less than budget, presenting a 22.9 percent favorable variance. The Self-Insurance Fund balance at June 30, 1998 was $5,358,000. Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills and notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 5.16 percent to 6.45 percent. The latest interest rate as of April 1998 was 5.22 percent. The average yield of the LAIF account through May 1998 was 5.67 percent. President Nejedly declared that the Financial Statements for the fiscal year ended June 30, 1998 were duly received. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Menesini requested an update on the Laboratory Project and Laboratory Information Management System (LlMS) at a future Board Meeting. 13. CLOSED SESSION a. EXISTING LITIGATION A closed session had been scheduled to discuss existing litigation pursuant to Government Code Section 54956.9(aL The title of the litigation was Rick Brummett, Jeannine Brummett, Mark Goings, Linda Goings, David Grubb, Sue Grubb, Cory Ness, and Kim Ness v. East Bay Municipal Utility District, Central Contra Costa Sanitary District, et al (Cree Court), Contra Costa County Superior Court Case No. C97-04571. This closed session was not held. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION None 15. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 6:01 p.m. to reconvene on Monday, August 17, 1998, at 2:30 p.m. in the Second Floor Conference Room, 5019 Imhoff Place, Martinez, California, for a Capital Projects Committee Meeting/Board Workshop; and to reconvene on Thursday, September 3, 1998, at 2:00 p.m. for a Regular Board Meeting. presi~¡;;' BO~~d ~r;~~ Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: cL 9 - Sec e r of t;,c Central ont Costa Sani ry Distric~, County of Contra Costa, State of California 0.. ~~;~ "..." 06 98