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HomeMy WebLinkAboutBOARD MINUTES 05-20-93 105 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 20, 1993 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3 p.m. on May 20, 1993. President Clausen called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Hockett, Rainey, Clausen ABSENT: Members: Dalton Member Dalton had advised staff that he was ill and unable to attend this meeting, and had requested that he be excused. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS PRESENTATION OF ASSEMBLY RESOLUTION COMMENDING FORMER BOARD MEMBER PARKE L. BONEYSTEELE FOR 25 YEARS OF SERVICE a. This item was held pending the arrival of Assemblyman Richard K. Rainey. 4. CONSENT CALENDAR President Clausen requested that Item b., consideration of a resolution foregoing collection of past unbilled Sewer Service Charges for years prior to Fiscal Year 1992- 1993, be pulled from the Consent Calendar for discussion. It was moved by Member Rainey and seconded by Member Hockett, that the Consent Calendar, consisting of Item a. and excluding Item b., be approved as recommended. a. The Contract Work for the construction of the Cured-In-Place Pipe Rehabilitation Project, DP 4889, in Walnut Creek and Orinda was accepted and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Clausen NOES: Members: None ABSENT: Members: Dalton With regard to foregoing collection of past unbilled Sewer Service Charges for years prior to 1992-1993, President Clausen stated that he requested staff to provide an estimate of the cost associated with collection of these bills. Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that staff has looked at a variety of potential responses from the affected customers in an effort to estimate the cost of collection. There is a cost for doing the work even if there are no complaints, but the cost becomes greater as the number of complaints increases. Mr. Dolan introduced Mr. Steve Elsberry, Accounting Supervisor, who stated that costs for producing letters, drafting position papers, responding to customer questions, and initiating legal action 05 20 93 106 could range from as little as $20,000 to as much as $220,000 with the potential of collecting nothing. With regard to collection of these charges on the tax roll, Mr. Kenton L. Aim, Counsel for the District, stated that written notice must be provided the first time such collection occurs and affected parties would have a right to protest. If there is a 50 percent protest, the District would be prevented from putting the 760 customers on the tax roll and would have to pursue collection by filing 760 Small Claims Court cases or a Superior Court action naming the 300 to 760 defendants that refused to pay. Each party would have to be served. If judgment were secured, a lien could be placed on each property and money would be received only as properties are sold. If a group of defendants joined together and got representation and adverse findings were made regarding the District position, the District could be required to pay the defendants' attorneys fees as well as the District's. Those fees are sometimes very high in cases of this nature. Mr. Aim stated that the cost of collection of these unbilled Sewer Service Charges is difficult to calculate. Hopefully, there would be no problems or substantial legal fees, but it is possible there could be. President Clausen thanked staff for the presentations. President Clausen stated his belief that the only basis on which the Board could forego the collection of these unbilled Sewer Service Charges is the cost of collection. Discussion followed concerning the estimated cost of collection, the tone and language in the draft letters, the procedures implemented to ensure that such a situation does not occur in the future, and the language in the proposed resolution which clearly states that foregoing attempts to collect these Sewer Service Charges from these innocent homeowners does not constitute a general policy of the District with regard to other unbilled or incorrectly billed customers nor does it waive or otherwise compromise the rights of the District with regard to assessment, imposition, or collection of any other tax, fee or charge. It was moved by Member Rainey and seconded by Member Hockett, that Resolution No. 93-041 foregoing collection of past unbilled Sewer Service Charges for years prior to Fiscal Year 1992-1993 be adopted and that the draft letters to affected customers be approved. Motion approved on the following roll call vote: AYES: Members: Rainey, Hockett, Menesini, Clausen NOES: Members: None ABSENT: Members: Dalton 5. HEARINGS CONDUCT HEARING ON THE NONPAYMENT OF FEES BY AZAD AMIRI. ADOPT A RESOLUTION TO COLLECT FEES ON THE 1 993-1 994 TAX ROLL a. Mr. Aim, Counsel for the District, recommended that this item be pulled from the agenda and that no action be taken by the Board. Mr. Aim stated that after the position paper was distributed, the District was served with a creditor's notice that Mr. Amiri had filed bankruptcy. President Clausen ordered that this item be removed from the agenda and that staff be directed to investigate the best course of action for the District with regard to nonpayment of fees by Azad Amiri. b. CONDUCT A PUBLIC HEARING ON THE PROPOSED CHANGES TO THE CURRENT SCHEDULE OF RATES AND CHARGES AND ADOPT AN ORDINANCE APPROVING THE FEE SCHEDULE EFFECTIVE JULY 1. 1993 Mr. Dolan, General Manager-Chief Engineer, stated that the current schedule of rates and charges was established by the Board in June 1992. At that time, the Board decided that rates and charges should include 75 percent of the District's administrative overhead costs phased in over three years at 25 percent each year. This is the second of a three- 05 2.0 93 107 year adjustment to apply the administrative overhead charge to these rates and charges. The compound effect of 25 percent administrative overhead adjustment and the cost-of- living adjustment is approximately 8 percent and all the rates and charges, with the exception of septage, have been adjusted by that figure. In 1989, the Board directed that the fee for septage be increased from $ .05 per gallon to the actual District expense and that the charge be phased in over three rate settings. It is recommended that the fee for septage be increased from $. 11 2 per gallon to $.146 per gallon completing the phase-in process. At 3:28 p.m., President Clausen opened the public hearing to receive public comments on the proposed changes to the current schedule of rates and charges. There being no comments, President Clausen closed the public hearing and returned the matter to the Board for deliberation. Following discussion of the various services provided and the modest level of increase, it was moved by Member Rainey and seconded by Member Menesini, that the proposed schedule of rates and charges be approved and that Ordinance No. 185 be adopted, implementing the new schedule effective July 1,1993. Motion approved on the following roll call vote: AYES: Members: Rainey, Menesini, Hockett, Clausen NOES: Members: None ABSENT: Members: Dalton 6. CALL FOR REQUESTS TO CONSIDER ITEMS. OUT OF ORDER None a. 7. BIDS AND AWARDS AUTHORIZE AWARD OF CONTRACT TO R&E CONSTRUÇTION CO.. INC.. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO ALLOCATE $143.000 FROM THE COLLECTION SYSTEM CONTINGENCY ACCOUNT FOR THE OVERLOOK DRIVE SEWER REPLACEMENT IN WALNUT CREEK. DP 4871. AND RESCIND A SEWER REPLACEMENT AGREEMENT WITH THE CITY OF WALNUT CREEK Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Menesini and seconded by Member Hockett, that the recision agreement with the City of Walnut Creek be approved; that award of contract in the amount of $102,790 be authorized to R&E Construction Co., Inc., the lowest responsible bidder; and that the General Manager-Chief Engineer be authorized to allocate $143,000 from the Collection System Contingency Account for the Overlook Drive Sewer Replacement, DP 4871. There being no objection, the motion was approved with Member Dalton being absent. b. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY AND AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH G.S. DODSON AND ASSOCIA TES.INC. FORTHE SECONDARY CLARIFIER IMPROVEMENTS PROJECT. DP 20089 Mr. Dolan, General Manager-Chief Engineer, stated that the Secondary Clarifier Improvements Projects will improve the scum removal system through the addition of new piping, pumps, and equipment. Following discussion, it was moved by Member Hockett and seconded by Member Rainey, that award of construction contract in the amount of $3,139,000 for construction of the Secondary Clarifier Improvements Project, DP 20089, be authorized to Kaweah Construction Company, the lowest responsible bidder; and that the General Manager-Chief Engineer be authorized to execute a professional services agreement with a cost ceiling of $98,000 with G.S. Dodson and Associates, Inc. to provide engineering services during 05 20 93 108 construction of the Secondary Clarifier Improvements Project, DP 20089. There being no objection, the motion was approved with Member Dalton being absent. At this time, President Clausen noted the arrival of Assemblyman Rainey and departed from the order of the agenda. 3. AWARDS AND COMMENDATIONS PRESENTATION OF ASSEMBLY RESOLUTION COMMENDING FORMER BOARD MEMBER PARKE L. BONEYSTEELE FOR 25 YEARS OF SERVICE a. Assemblyman Richard K. Rainey read Assembly Resolution commending former Board Member Parke L. Boneysteele for 25 years of service and presented a commemorative resolution to Mr. Boneysteele. Mr. Boneysteele accepted the resolution thanking Assemblyman Rainey and the Board of Directors for their consideration and confidence. President Clausen and the Board of Directors joined Assemblyman Rainey in offering their appreciation and congratulations to Mr. Boneysteele. President Clausen reverted to the order of the agenda. 8. SOLID WASTE a. PRESENTATION BY MS. LOUISE AIELLO. CONTRA COSTA COUNTY AB 939 PROGRAM DIRECTOR. ON THE COUNTY'S SOLID WASTE AND RECYCLING BUDGET Ms. Joyce E. Murphy, Secretary of the District, stated that due to her heavy workload, Ms. Aiello advised staff that she was unable to attend this meeting and requested that her presentation on the County's solid waste and recycling budget be continued to June 3, 1993. The Board concurred. b. RECEIVE LETTER DATED APRIL 26. 1993 FROM THE CONTRA COSTA SOLID WASTE AUTHORITY REQUESTING SUPPORT FOR THE USE OF RECYCLED TIRES IN THE CONSTRUCTION OF ROADS AND HIGHWAYS Member Menesini stated his understanding that the technology for using recycled tires in construction is not yet proven and there are some problems with toxic emissions. Member Menesini indicated that he would support this request but requested that further investigation be done with regard to the toxicity issue. Mr. Dolan, General Manager-Chief Engineer, stated that staff has looked into this issue. Improvements have been made in the technology of asphalt using rubber. However, Mr. Dolan recommended that the Board not adopt a resolution committing to the use of recycled tires at this time because much of the District work consists of small jobs. The use of tires makes the material very sensitive in that application and better suited for paving entire roadways. On the positive side, the material resists cracking, is quieter, and has some skid resistance. The District may wish to study this matter further and use this material where practical. Member Rainey, the District's representative on the Contra Costa Solid Waste Authority (CCSWA), stated that CCSWA is trying to encourage the use of recycled products. While some agencies are cautious about the use of recycled products, CCSWA feels it is appropriate to continue to explore markets for recycled products and encourage their use. This material would be used primarily for highways and not small patch jobs. Following discussion, it was moved by Member Rainey and seconded by Member Hockett, that Resolution No. 93-042 be adopted, supporting the use of recycled tires in the construction of roads and highways. Motion approved on the following roll call vote: AYES: Members: Rainey, Hockett, Menesini, Clausen NOES: Members: None ABSENT: Members: Dalton - 05- '20 93 109 In response to a question from Member Menesini, CCSWA Executive Director Avon Wilson stated that the California Integrated Waste Management Board (CIWMB) is offering financial incentives through $50,000 grants to assist jurisdictions in the start up of tire- related projects and waste tire management. Application for those funds can be made to the CIWMB. c. CONSIDER LETTER IN SUPPORT OF HENRY'S WOOD FARM COMPOSTING OPERATION It was the consensus of the Board of Directors that the draft letter supporting Henry's Wood Farm composting operation be approved. 9. ADMINISTRATIVE RECEIVE PRESENTATION ON PROPOSED EDUCATION PROGRAM a. Mr. Dolan, General Manager-Chief Engineer, stated that for the past few months, staff has been putting together a public education program. Concurrently, the District has been working in an era of financial constraints and making cutbacks. The ultimate decision whether to proceed, and at what level, with a public education program is a policy decision for the Board. Mr. Dolan introduced Ms. Colleen Camicia, Public Information/Graphics Coordinator, who described the proposed communications plan. Ms. Camicia stated that due to a number of federal and state mandates, the District is increasingly dependent on public participation both to reduce pollutants in the sanitary sewer system and to meet the solid waste reduction and recycling goals of Assembly Bill 939. The three primary goals of the proposed District communications plan are: 1) To create participation levels in solid waste reduction programs necessary to achieve 1995/2000 diversion objectives; 2) To adequately reduce problem pollutants entering the treatment plant from both residential and nonresidential sources; and 3) To educate/inform the community about District projects, fees, and levels of service to help ensure community support. As set forth in the information provided to the Board in the agenda packet, Ms. Camicia reviewed the objectives of each goal, the targeted audiences, and the proposed vehicles for reaching the audiences. Ms. Camicia then focused her presentation on the proposed Schoolchildren Program, one objective for achieving the pollution prevention goal, and presented the following staff recommendations: . In 1993-1994, develop a relationship with two or three intermediate/high schools for in-class presentations. . In 1993-94, provide limited site visits and team up with the Lindsay Museum for in-class presentations to 4-8 graders. . In 1994-1995, assess the program and expand the intermediate/high school program, if possible. . In 1995 and after, modify the program to maximize effectiveness as the budget permits. Ms. Camicia reviewed the estimated costs and sources of funds for the proposed communications plan. Member Rainey questioned whether some of the components of the proposed communications plan are redundant in that they may duplicate programs that are already available. Member Rainey stated that funding may be available from other sources and requested that staff explore non-point source parcel fees as a possible source of funding. 05 20 93 110 In response to a question from Member Hockett, Ms. Camicia stated that $30,000 has been budgeted for curriculum development for the education program. Member Menesini suggested that teachers be involved in the process of curriculum development and stated that grants are available for this purpose that could be pursued by the District. Member Menesini also suggested that staff contact other agencies and companies that have existing pollution prevention and environmental education programs such as TOSCO, Chevron, and Alameda County Schools. Member Hockett indicated that the State Department of Education may have curriculum available on this subject. Member Rainey questioned the cost estimates and their integration into the departmental budgets and again cautioned that staff ensure that the proposed program and costs are not redundant since many jurisdictions and manufacturers are required to do point-of- purchase informational materials and the like. Mr. Dolan thanked the Board for their input and stated that staff will report back to the Board as the program progresses. 10. ENGINEERING a. AUTHORIZE THE GENEBALMANAGER-CH~GINEER TO EXECUTE A WASTEWATER DISCHARGE CONTRACT WITH ACME FILL CORPORATION Mr. Dolan, General Manager-Chief Engineer, stated that a draft contract was included in the Board agenda packet. The District's objectives are to provide adequate protection for the District and to provide environmentally safe leachate treatment for closure and post- closure of Acme Fill. From a practical, public-spirited point of view, the best position for the District is to ensure that leachate treatment is provided at the lowest cost and that the environment is adequately protected. Discussion followed concerning the issues of toxicity and salt related to the leachate and the impact on the District's effluent and water reclamation activities. Mr. Dolan stated that if the Board approves the contract the District will accept pretreated leachate at the rate of 25 gallons per minute for one year to determine the effectiveness of the leachate pretreatment equipment proposed to be installed by Acme Fill Corporation and the impact of the pretreated leachate discharge on District facilities and the District's effluent quality. President Clausen raised the question and the problems associated with entering into a long-term arrangement with Acme Fill Corporation, cautioning that Acme may default. Member Rainey stated that she would support the one-year pilot test because it is the best and cheapest alternative for the ratepayers; however, Member Rainey stressed that Acme should be aware that the District could decide not to proceed if the District's ability to reclaim water is adversely impacted. Member Menesini voiced three questions. 1 ) What assurance does the District have that the regulatory agencies will commit to this arrangement and support the District should there be any violations caused be acceptance of Acme leachate? 2) Is there any opportunity to require that a perimeter drain be used rather than deep wells in the center of the landfill? 3) Can the District terminate the contract and stop taking Acme leachate if Acme fails to perform in accordance with the terms of the contract? With regard to question 3, Mr. Dolan referred to page 20 of the draft contract, Substantial Violations, and read the language that provides for immediate termination of the contract at the discretion of the District. With regard to question 2, Mr. Dolan stated that the issue of a perimeter drain has been a major technical question. The original work done prior to 1988 was based on rather inadequate technical information. Information gathered more recently has led staff to 05 2,0 93 111 conclude that a carefully designed and constructed perimeter drain would be better and would have less flow. More information is being gathered on this subject. With regard to question 1, Mr. Dolan stated that there are two sets of regulators, the Regional Water Quality Control Board (RWQCB) and the Department of Toxic Substance Control (DTSC), formerly the Department of Health. There are two sets of regulations, both of which were written in part pursuant to federal law and are therefore subject to Environmental Protection Agency (EPA) intervention. The regulators want pretreated Acme leachate to come to the District. The District has requested assurances that the District will not be subject to fines for violations caused by acceptance of Acme leachate. A letter was sent to the RWQCB a month ago asked for concessions in various areas. The RWQCB is in the process of drafting a response to that letter giving the District those assurances for the 1 2-month test period. After considering the best interests of the District's ratepayers and protection of the environment, it was moved by Member Rainey and seconded by Member Menesini, that the General Manager-Chief Engineer be authorized to complete final negotiations and execute a 12-month Permit Contract with Acme Fill Corporation, and that staff be directed to file an appropriate Notice of Exemption. Motion approved on the following roll call vote: AYES: Members: Rainey, Menesini, Hockett, Clausen NOES: Members: None ABSENT: Members: Dalton b. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH G.S. DODSON AND ASSOCIATES. INC. FOR DeSIGN ASSISTANCE ON THE AERATION BASIN SELECTOR PROJECT. DP 20132. AND AUTHORIZE ALLOCATION OF FUNDS FROM THE TREATMENT PLANT CONTINGENCY PROGRAM ACCOUNT Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Menesini and seconded by Member Hockett, that the General Manager-Chief Engineer be authorized to allocate $100,000 from the Treatment Plant Program Contingency Account to the Aeration Basin Selector Project, DP 20132; and that the General Manager-Chief Engineer be authorized to execute a professional services agreement with a lump sum amount of $60,000 with G.S. Dodson and Associates, Inc. for design assistance on the Aeration Basin Selector Project, DP 20132. There being no objection, the motion was approved with Member Dalton being absent. a. 11. CORRESPONDENCE NOTE RECEIPT OF LETTER DATED APRIL 27. 1993 FROM THE CITY OF CONCORD MAYOR NANCY GORE CONCERNING THE" A" LINE PROJECT: CONSIDER DRAFT RESPONSE b. NOTE RECEIPT OF LETTER DATED MAY 6. 1993 FROM THE CITY OF PLEASANT HILL MAYOR KIMBERLY N. BRANDT CONCERNING THE" A" LINE PROJECT: CONSIDER DRAFT RESPONSE CONSIDER DRAFT RESPONSE TO MARCH 29. 1993 LETTER FROM WALNUT CREEK CITY COUNCILMEMBER EVELYN MUNN CONCERNING THE PLEASANT HILL/A-LINE RELIEF SEWER PROJECT AND THE APRIL 22. 1993 LETTER FROM WALNUT CREEK MAYOR GENE WOLFE AND COUNCILMEMBER EVELYt-J MUNN CONCERNING THE TRI-VALLEY WASTEWATER AUTHORITY (TWA).PROPOSED PROJECT c. d. CONSIDER DRAFT RESPONSE TO APRIL 19. 1993 LETTER FROM A. B. McNABNEY. VICE PRESIDENT-CONSERVATION. MT. DIABLO AUDUBON ~TY. CONCERNING 'lliE...IBJ-VALLEY WASTEWATER AUTHORITY (TWA) PROPOSED PROJECT 05 20 93 112 e. CONSIDER DRAFT RESPONSE TO APRIL 23. 1993 LETTER FROM CITY OF PITTSBURG MAYOR ROBERT T. LEWIS. CONCERNING THE TRI-VALLEY WASTEWATER AUTHORITY (TWA) PROPOSED PROJECT Member Hockett recommended that the reference to the Tri-Valley Wastewater Authority (TWA) be deleted from the response to Concord Mayor Nancy Gore since TWA was not mentioned in her letter to the District. Member Menesini disagreed, stating that all these letters are directed at TWA. Member Menesini stated that the cities want the District to state that we are not looking to extend service outside Contra Costa County. Member Hockett then proposed that the District not respond to these letters or to any other letters that might be received on this subject since no TWA proposal exists. Referencing language in the responses indicating that the District would respect its commitments, Member Menesini Questioned what commitments the District has to TWA. Mr. Dolan, General Manager-Chief Engineer, explained that the sentence referred to the question concerning Environmental Impact Report (EIR) commitments and that the District would respect the commitments made in the EIR. The District would be unable to undertake service to TW A without full California Environmental Quality Act (CEQA) documentation. Mr. Kenton L. Aim, Counsel for the District, stated that the only commitments really made in an EIR in a technical sense are the commitments made as mitigation. Following discussion of the need to respond and interpretation of the language in the draft letters, it was moved by Member Rainey and seconded by Member Hockett, that the draft responses to the April 27, 1993 letter from the City of Concord Mayor Nancy Gore concerning the" A" Line Project, the May 6, 1993 letter from the City of Pleasant Hill Mayor Kimberly N. Brandt concerning the" A" Line Project, the May 29, 1993 letter from Walnut Creek City Councilmember Evelyn Munn concerning the Pleasant Hill/A-Line Relief Sewer Project and the April 22, 1993 letter from City of Walnut Creek Mayor Gene Wolfe and Councilmember Evelyn Munn concerning the TWA proposed project, the April 19, 1993 letter from A.B. McNabney, Vice President-Conservation, Mt. Diablo Audubon Society, concerning the TWA proposed project, and the April 23, 1993 letter from City of Pittsburg Mayor Robert T. Lewis, concerning the TWA proposed project, be approved as presented. The motion was approved on the following roll call vote: AYES: Members: Rainey, Hockett, Clausen NOES: Members: Menesini ABSENT: Members: Dalton 12. APPROVAL OF MINUTES MINUTES OF MAY 6. 1993 a. It was moved by Member Rainey and seconded by Member Hockett, that the minutes of May 6, 1993 be approved with the correction of the typographical error on page 14, changing the first word in the first paragraph from" Mr." to "Ms." There being no objection, the motion was approved with Member Dalton being absent. 13. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED MAY 20. 1993 a. Member Menesini, member of the Budget and Finance Committee, stated that he and Member Hockett reviewed the expenditures and found them to be satisfactory. Because of the number of consultants and contractors working on various projects for the District, Member Menesini requested that staff provide a listing of consultants and contractors and the project on which each is working. Staff has indicated they will provide such a listing. It was moved by Member Menesini and seconded by Member Hockett, that the Expenditure List dated May 20, 1993, including Self-Insurance Check Nos. 100688- 100690, Running Expense Check Nos. 75286-75550, and Sewer Construction Check -- -. 05 20 93 113 Nos. 12484-12546, be approved as recommended. There being no objection, the motion was approved with Member Dalton being absent. 14. BUDGET AND FINANCE RECEIVE APRIL 1993 FINANCIAL STATEMENTS a. Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance expenses for the month of April 1993, noting that expenditures were $27,000 over budget representing a 1.2 percent unfavorable variance. For the ten months ended April 30, 1993, expenditures were $1,163,000 less than budget, representing a 5.1 percent favorable variance. Mr. Ratcliff reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 2.7 percent to 6.2 percent. The latest interest rate was 3.7 percent. The average yield for the LAIF account through March 1993 was 4.6 percent. President Clausen noted that there is a 6.5 percent shortfall in revenue; however, expenditures are down by only 4 percent. Ms. Ratcliff stated that if charge outs are included, expenditures are 5.1 percent under budget. President Clausen indicated that the April 1993 Financial Statements were duly received. b. RECEIVE THE 1 993-1 994 OPERATIONS AND MAINTENANCE BUDGET Mr. Dolan, General Manager-Chief Engineer, introduced Ms. Deborah Ratcliff, Controller, who summarized the 1992-1993 projected actual revenues, expenses and reserves compared to budget, noting the revenues are projected to be $563,000 or 2 percent less than budget of $28.5 million and expenditures are projected to be $887,000 or 3.2 percent less than budget of $27.5 million as a result of staff efforts to reduce costs wherever possible. Ms. Ratcliff presented the 1993-1994 Operations and Maintenance (O&M) Budget based on a Sewer Service Charge of $185 for initial review. Ms. Ratcliff highlighted the budgeted revenues, expenditures and reserves as detailed in the 1993-1994 O&M Budget previously distributed to the Board. Ms. Ratcliff reviewed the proposed transfer from the O&M Fund to the Sewer Construction Fund in the amount of $3,368,000. The transfer would recover a portion of the ad valorem tax revenue loss suffered by the District in the 1992-1993 Fiscal Year and fund the capital replacement allowance based on the annual depreciation expense of the District's furniture and equipment. Ms. Ratcliff summarized major revenue categories, indicating that 1993-1994 O&M revenues are budgeted to increase by $2.2 million or 8 percent. Budgeted expense categories were reviewed and it was noted that a $54,000 decline in expenses, essentially a flat budget, is proposed for the 1 993-1994 Fiscal Year. Deputy General Manager Paul Morsen, Deputy Chief Engineer Robert A. Baker, Collection System Operations Department Manager John A. Larson, and Plant Operations Department Manager Charles W. Batts reviewed the departmental expenses which reflect increases and the programs eliminated or deferred in the interest of achieving a flat 1 993- 1994 O&M Budget. It was noted that District-wide the proposed 1993-1994 O&M Budget is $54,000 or .2 percent less than last year. In response to questions from Member Rainey, Mr. Dolan stated that staff will provide a table showing all proposed public education costs from each department including costs for the pollution prevention program. At 6:40 p.m., President Clausen declared a recess, reconvening at the hour of 6:48 p.m. with all parties present as previously designated. Mr. Dolan, General Manager-Chief Engineer, stated that the Board will recall that due to concerns for the capital program and the possible ad valorem tax loss in 1992-1993 the Sewer Service Charge was increased by approximately 10 percent and anticipated expenses increased by approximately 3 percent. The Board then gave the General Manager-Chief Engineer and each department head the goal of reducing expenditures by '05 20 93 ------.--.--.- .- '---'--'------"--------,--,-""---",-,--",.-.-,.,,.-,........_.. --'--.-"--'----"--'--'--------"-----'-"-'-"---, 114 2 percent. A 3 percent reduction in expenditures is projected for the 1992-1993 Fiscal Year. Through close scrutiny and hard work, staff has proposed a flat budget for 1993- 1 994 which staff believes will allow the District to care for the public health and meet the goats of reducing positions and expenses. This has required sufficient cuts to absorb the inflationary increase in the cost of labor, energy, and chemicals. Mr. Dolan requested guidance from the Board with regard to these goals and the presentation for the June 10. 1993 public hearing. President Clausen requested that staff compute the amount of rate increase necessary to offset the salary and benefit increases required by the current Memoranda of Understanding with the employee groups and the amount of rate increase necessary to replace the ad valorem tax revenue taken by the State of California in 1 992-1993. Mr. Dolan stated that staff will provide that information in the presentation at the public hearing. Member Menesini requested that the O&M Budget cuts be emphasized at the public hearing. President Clausen agreed, stating that staff did a fine job in paring the budget. Mr. Dolan thanked the Board for their input. President Clausen declared that the 1993-1 994 O&M Budget was duly received for review. None a. b. 05 15. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 16. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Robert A. Baker, Deputy Chief Engineer, who provided an overview of the Sewer Service Charge increase alternatives proposed solely for the purpose of recovering ad valorem tax revenue taken by the State and required for the Capital Improvement Program. Mr. Baker stated that all the calculations were based on the assumption that the District would retain the remaining ad valorem tax revenue; however, staff believes that is unlikely. If the remaining ad valorem tax revenue is taken by the State, there are sufficient reserves for one year. Mr. Baker briefly described the capital program reduction alternatives. The overriding feature of the reductions are cuts in collection system and treatment plant overflow protection programs. The Board Budget and Finance Committee asked the actual risk of the proposed cuts. Mr. Baker stated that as are many wastewater utilities in California, the District in currently in violation with regard to collection system overflows. The District has not been fined and it is unlikely that the District will be fined in the near future because of the fairly aggressive program planned to correct these problems. A less aggressive program exposes the District to the risk of regulatory fines. 2) Mr. Dolan distributed the latest inPROGRESS newsletter which was included as a stuffer in garbage bills. It is estimated that a $27,000 savings will be realized during the coming fiscal year by including the newsletters in the garbage bills rather than using separate mailings. 3) Due to the lateness of the hour, the discussion of Total Quality Management/Work Redesign was continued to the June 3, 1993 Board Meeting. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, announced that a possible decrease in Acme transfer station rates is being considered. Mr. Aim stated that he will attend a meeting on this subject on May 21, 1993 and will report any developments to the Board. 20 93 115 c. SECRET ARV OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, stated that a question arose at the last Board Meeting as to whether Congressman George Miller received a copy of the District's March 3, 1993 letter encouraging infrastructure investment in sewer and wastewater reclamation projects. Ms. Murphy stated that Congressman Miller did receive a copy of the letter. d) BOARD MEMBERS 1) Member Rainey reported that the County Integrated Waste Management Plan (CoWIMP) documents were distributed for approval on May 19, 1993. It is hoped that the cities will approve the CoWIMP by August 23, 1993 to allow for State approval by December 26, 1993. If the CoWIMP is not approved by December 1993, it may be subject to new regulations in 1994. AB 939 Task Force meetings have been discontinued until the CoWIMP is approved, at which time it is anticipated that the AB 939 Task Force will disband. 17. ANNOUNCEMENTS None 18. CLOSED SESSION None 1 9. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 20. ADJOURNMENT There being no further business to come before the Board, President Clausen adjourned the meeting at the hour of 7:28 p.m. es' ant of the Board of Directors, tral Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Sac et ry of the Central C tra C ta Sanitary District, County of Contra Costa, State of California 05 20 93