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HomeMy WebLinkAboutBOARD MINUTES 07-01-93 143 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 1, 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 3:00 p.m. on July 1, 1993. President Clausen called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Dalton, Hockett, Rainey, Clausen ABSENT: Members: None 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through h., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 93-060 was adopted, confirming that publication has been made of District Ordinance No. 185, adopting the Schedule of Operation and Maintenance Rates and Charges and amending District Code Section 6.30. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None b. Resolution No. 93-061 accepting an easement at no cost to the District from Jake E. Smith, Jr., et ux, Martinez area, Job 1804, Parcel 1, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None c. Resolution No. 93-062 accepting an easement at no cost to the District from Janet Caprile, Martinez area, Job 4512, Parcel 1, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None 07 01 93 144 d. Quitclaim Deed to Janet Caprile, Job 1832, Martinez area, 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, and Resolution No. 93-063 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None e. A public hearing was set for 3 p.m. on July 15, 1993 to receive public comment on the collection of prior year delinquent Sewer Service Charges on the County tax rolls. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None f. Authorization was given for P.A. 93-11 (Orinda) and P.A. 93-12 (Moraga) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None g. A Leave of Absence Without Pay was authorized for Leslie Chapman, Engineering Technician II, effective June 21, 1993 through October 22, 1993. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None h. Resolution No. 93-064 was adopted, concurring with and adopting the Negative Declaration of the Local Agency Formation Commission (LAFCO), certifying that the Board has reviewed and considered the Negative Declaration, ordering the filing of the Notice of Determination as a Responsible Agency stating that the District considered the Negative Declaration as prepared by LAFCO as required, and ordering the completion of District Annexation No. 124, Parcels 3, 4, 5, and 6. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None 07 01 93 145 4. HEARINGS a. HOLD PUBLIC HEARING ON UNINHABITED DISTRICT ANNEXATION 124. PARCELS 1. 2. 8. 9. AND 10 AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) AND CONSIDER THE NEGATIVE DECLARATION BY LAFCO Mr. Dolan J. Dolan, General Manager-Chief Engineer, stated that a complete position paper was provided to the Board. A detailed staff presentation was not planned since the public has been briefed on this matter and staff is not aware of any opposition to the proposed annexation. At 3:02 p.m., President Clausen opened the public hearing to receive testimony of the affected property owners relating to proposed District Annexation 124, Parcels 1, 2, 8, 9, and 10. There being no comments, President Clausen closed the public hearing and returned the matter to the Board for deliberation. It was moved by Member Rainey and seconded by Member Hockett, that Resolution No. 93-065 be adopted, certifying that the Board has reviewed and considered the Negative Declaration, ordering the filing of the Notice of Determination as a Responsible Agency stating that the Board considered the Negative Declaration as prepared by LAFCO as required, concurring with the adoption of the Negative Declaration by LAFCO, and ordering completion of Uninhabited District Annexation No.1 24, Parcels 1, 2, 8, 9, and 10 as amended by LAFCO. Discussion followed concerning the total acreage of the proposed annexation, planned development within the proposed annexation, and the possibility of future subdivision of the parcels. In response to a question from Member Menesini, Mr. Dolan stated that the connection fee is based on the estimated cost of providing the replacement of that customer's capacity through facilities included in the Capital Improvement Plan and does not include a charge for buy-in into existing facilities. The connection fee would normally be assessed at the time of connection rather than at the time of annexation. Mr. Dolan stated that the staff is planning to recommend to the Board a change in the basis for connection fees to include a charge for buy-in into existing facilities. That matter will be brought to the Board later in the year. Member Menesini expressed concern that these newly annexed property owners are allowed into the District as full members of the District without any payment for past obligations. Mr. Dolan stated that the Board will have the opportunity later in the year to provide for a buy-in charge as part of future connection fees. In response to a question, Mr. Dolan described the past and present method for calculating annexation fees. Member Menesini again expressed concern that the promise to existing ratepayers who have paid for the service may be extended to others who have not paid for the service. Mr. Kenton L. Aim, Counsel for the District, stated that conceptually, new fees from new connections go for paying for improvements needed to accommodate new capacity. The other fees, tax revenue, and the major portion of the monies in the capital reserve have been allocated for upgrade and improvements related to service provided to ongoing users. Mr. Aim stated his belief that the concerns expressed by Member Menesini have been addressed. The fee system is an attempt to do that equitably. Member Menesini expressed concern for the future, stating that while this is a small item, there may be larger projects in the future that wish to annex to the District without sharing in the costs of existing facilities. In the discussion that followed, Mr. Dolan stated that no promise to serve is given at the time of annexation. Service availability is dependent on the situation at the time of application for connection. There being no further comments, President Clausen called for the vote on the above motion considering and approving the Negative Declaration by LAFCO, ordering completion of Uninhabited District Annexation 124, Parcels 1, 2, 8, 9, and 10 as amended by LAFCO, and adopting Resolution No. 93-065 to that effect. Motion unanimously approved on the following vote: 07 01 93 146 AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None b. HOLD PUBLIC HEARING ON INHABITED DISTRICT ANNEXATION 124. PARCEL 7. AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) AND CONSIDER THE NEGATIVE DECLARATION BY LAFCO At 3:28 p.m., President Clausen opened the public hearing to receive testimony on proposed Inhabited District Annexation 124, Parcel 7, as amended by LAFCO. There being no comments, President Clausen closed the public hearing and returned the matter to the Board for deliberation. It was moved by Member Dalton and seconded by Member Rainey, that Resolution No. 93-066 be adopted, certifying that the Board has reviewed and considered the Negative Declaration of LAFCO, ordering the filing of the Notice of Determination as a Responsible Agency stating that the Board considered the Negative Declaration, concurring with the adoption of the Negative Declaration of LAFCO, and ordering completion of Inhabited District Annexation 124, Parcel 7, as amended by LAFCO. Motion unanimously approved on the following vote: AYES: Members: Dalton, Rainey, Menesini, Hockett, Clausen NOES: Members: None ABSENT: Members: None c. CONDUCT A PUBLIC HEARING: CONSIDER APPROVING SEGMENT 14 OF THE PLEASANT HILL RELIEF INTERCEPTOR AND CONSOLIDATING CONSTRUCTION OF SEGMENTS 1 AND 3 OF THE PLEASANT HILL AND A-LINE RELIEF INTERCEPTORS (DP 4879) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Russell Leavitt, Planning Assistant, who stated that staff recommends that the Board conduct a public hearing and consider approving Segment 14 of the Pleasant Hill Relief Interceptor and consider consolidating construction of Segments 1 and 3 of the Pleasant Hill and A-Line Relief Interceptors. A public hearing is not required by either the District Guidelines or the California Environmental Quality Act (CEQA) Guidelines, but it provides the public with another opportunity to comment. Mr. Leavitt stated that staff has reviewed the Environmental Impact Report (EIR) and concluded that it adequately addressed these elements. An addendum has been prepared to identify the 1991 EIR analysis applicable to these recommended project elements and to apprise the public of the reasons for making these project approval recommendations. That addendum is included in the Board packet as Exhibit 1. Although it was not required, the addendum was circulated to those who previously expressed an interest in the project. In response, three letters were received and distributed to the Board together with the staff comments as Exhibit 6. 1 ) Letter dated June 23, 1993, from Mr. Harold E. Wight, Manager of Airports, Contra Costa County Airports; Letter dated June 25, 1993, from Mayor Nancy Gore, City of Concord; and 2) 3) Letter dated June 25, 1993, from Mr. John A. Nejedly. Mr. Leavitt stated that the District has compiled a substantial administrative record of the environmental effects of approving the elements. This information set forth on pages 11 and 1 2 of Exhibit 4. Mr. Leavitt presented the staff recommendation, that the Board conduct the public hearing; and barring any unknown complications, adopt the resolution approving Segment 14 of the Pleasant Hill Relief Interceptor and consolidating construction of Segments 1 and 3 of the Pleasant Hill and A-Line Relief Interceptors. ,07 01 93 147 In response to a statement by Member Menesini concerning capacity for the Tri-Valley Wastewater Authority, Mr. Leavitt stated that the staff recommendation for a 102-inch pipe is sufficient for planned growth in the District's service area. Additional capacity would be required at some time in the future if the Tri-Valley Wastewater Authority (TWA) were to be served, Mr. Tad Pilecki, Senior Engineer, described Segments 1, 3, and 14 currently before the Board for consideration and the proposed structures and pipelines. Mr. Pilecki presented the staff recommendation that Segment 14 be approved as opposed to Segments 13/15 based on the following findings: 1) 2) Segment 14, with tunnel, would produce less disruption; Segment 14 right-of-way acquisition costs are $750,000 less; 3) 4) Segment 14 has fewer bends so hydraulics are better; and Segment 14 construction costs are estimated to be $150,000 to $400,000 less. However, Mr. Pilecki stated that there is a limited area on Segment 14 that is subject to contamination. The cost analysis of the alternatives presented above includes $100,000 for soil remediation. Discussion followed concerning responsibility for soil remediation costs, and the proposed alignment through the Buchanan Field Golf Course. Mr. Robert A. Baker, Deputy Chief Engineer, addressed the Board with regard to upsizing the line in Marsh Drive, Segments 1 and 3. Mr. Baker stated that the main impact to the community is the construction of the sewer itself and that has been the main focus of staff efforts with the community during the preparation of the EIR. The final issue has centered around the subject of growth inducement. In the case of the San Ramon Valley Interceptor, there was only one route for the pipeline and, once the pipe was constructed it would be extremely difficult to build extra capacity. In this case, there are other routes that may not be as desirable but could be used. Furthermore, when the San Ramon Valley Interceptor pipe was sized, all of the general plans for the San Ramon Valley were not complete. Recognizing this, the Board sized the San Ramon Valley Interceptor based on prospective growth. In the case of Segments 1 and 3, planned growth (the approved growth plans of the cities within the service area for this pipe) has been used to size the pipeline and it may not be sufficient for prospective growth. Planned growth was used to size the pipeline for the following reasons: 1) This is a very big pipe expected to be sufficient for at least 20 years; 2) Unlike the San Ramon Valley Interceptor case, there are opportunities for other routes in the future; 3) An economic analysis of the size and life of the pipeline support the decision to use planned growth; and 4) Using planned growth for sizing the pipeline will help gain community support for the project. Mr. Baker stated that the required size for the pipe is 208 mgd. Because of available pipe size, the actual capacity of the pipe as constructed will be 219 mgd. As stated earlier, this does not allow sufficient capacity for TWA. The location of the Shell pipeline and inclusion of pipe for reclaimed water in this alignment was discussed. At 4: 1 0 p.m., President Clausen opened the public hearing to receive comments regarding approval of Segment 14 of the Pleasant Hill Relief Interceptor and consolidating construction of Segments 1 and 3 of the Pleasant Hill and A-Line Relief Interceptors. 07 01 93 148 There being no comments, President Clausen closed the public hearing and returned the matter to the Board for deliberation. In response to a comment from Member Menesini concerning the lack of public interest in the project, Mr. Dolan stated that this project has been the subject of 24 public meetings to date and there has been a significant amount of public input on the project. In addition, District staff has a good degree of cooperation and support from the City of Pleasant Hill. Some representatives of the public and the shopping center are present today. Ms. Helen Albrick, Property Manager for Jarvis & Associates, the owners of the Pleasant Hill Shopping Center, stated that staff has been very thorough in meeting with the owners and merchants of the Pleasant Hill Shopping Center and addressing the concerns raised. It was moved by Member Dalton and seconded by Member Rainey, that Resolution No. 93-067 be adopted, approving Segment 14 of the Pleasant Hill Relief Interceptor and consolidating construction of Segments 1 and 3 of the Pleasant Hill and A-Line Relief Interceptors, approving Conditions of Approval, Findings of Fact and Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Plan. Member Menesini referred to page 4 of Exhibit 4, Findings of Fact and Statement of Overriding Considerations, questioning the reference to the years 2003 and 2013. Mr. Jarred Miyamoto-Mills, Principal Engineer, stated that this reflects the consideration of the Capital Improvement Budget and Capital Improvement Plan cutbacks which added two to three years to the accomplishment of goals to upgrade the system to deal with five- year and 20-year wet weather storm events. In response to a question from Member Menesini, Mr. Baker described the District's current relationship with Contra Costa Water District and East Bay Municipal Utility District in terms of cooperative water reclamation efforts. Mr. Parke L. Boneysteele, resident of Walnut Creek and former member of the Board of Directors, addressed the Board. Mr. Boneysteele strongly protested putting the Pleasant Hill and A-Line Relief Interceptors out to bid without a provision for water reclamation, stating that would be a direct contradiction to a commitment previously made by this District. Mr. Dolan, General Manager-Chief Engineer, stated that because the process for CEOA review of the water reclamation project is on a delayed track, three schedules for bid have been developed: one including a 24-inch reclaimed water line in Marsh Drive, one including an 18-inch reclaimed water line in Marsh Drive, and one with no reclaimed water line. Mr. Boneysteele stated that if no provision is made for reclaimed water at these crucial points (crossing Highway 680, the Buchanan Field Golf Course, the Pleasant Hill Shopping Center, and Contra Costa Boulevard), the reclaimed water project will be dead because the cost for retrofitting will be prohibitive. Member Rainey agreed. President Clausen stated that the District should seize the opportunity to purchase the Shell pipeline for future water reclamation efforts. Member Menesini referred to page 10 of Exhibit 4, questioning whether an EIR would be presented to the Board for consideration prior to the use of the excess capacity in the A- Line Relief Interceptor. Mr. Baker stated that an EIR amendment or some sort of additional CEOA documentation would be required. In response to a question from Member Menesini, Mr. Leavitt explained the definitions on page 13 of Exhibit 4 as defined by CEOA and case law used to describe the mitigation affects on the impacts of the project. In response to a question from Member Menesini, Mr. Leavitt stated that the issues listed on page 18 of Exhibit 4 were addressed by the 1991 EIR certified by the Board of Directors. There were no legal challenges to that document and it is being used to secure the various permits required. In response to a question from Member Menesini concerning paragraph g. on page 19 of Exhibit 4, Mr. Leavitt stated that the District Construction Project Manager convenes construction review meetings twice a month with District inspectors, contractors, and local agency representatives to discuss construction progress and review community 07 01 93 149 concerns. Because of the size and scope of this project, Member Menesini requested notification of those meetings or a periodic report by the General Manager-Chief Engineer to the Board. Mr. Dolan, General Manager-Chief Engineer, stated that a request for more information on capital projects was requested at the June 22, 1993 Strategic Planning Workshop and staff intends to provide that information. Progress reports will be made and any complications will be discussed as they arise. In response to questions from Member Menesini, Mr. Pilecki stated that there are written requirements in the District contracts relating to hauling and staging areas. Mr. Pilecki stated that a detailed environmental assessment was done with regard to construction plans within the creek channel and possible groundwater contamination; and in certain areas identified, there will be specific plans to address that issue. Member Menesini stated that the Mitigation Monitoring and Reporting Program is a very comprehensive document. Member Menesini asked who has ultimate responsibility for this. Mr. Leavitt stated that Ms. Jackie Zayac, Planning Assistant, is the designated staff person. Member Menesini asked if Mr. Aim, Counsel for the District, was satisfied. Mr. Aim stated that the documentation is very thorough and his experience in the past with the District, is that staff is very thorough and that the project and the Mitigation Monitoring and Reporting Program will be carefully monitored. There being no further comments, President Clausen called for a roll call vote on the above motion to adopt Resolution No. 93-067 approving Segment 14 of the Pleasant Hill Relief Interceptor and consolidating construction of Segments 1 and 3 of the Pleasant Hill and A-Line Relief Interceptors, and approving Conditions of Approval, Findings of Fact and Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Plan. Motion unanimously approved on the following roll call vote: AYES: Members: Dalton, Rainey, Menesini, Hockett, Clausen NOES: Members: None ABSENT: Members: None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None a. 6. BIDS AND AWARDS AUTHORIZE AWARD OF CONTRACT TO V & M CONSTRUCTION/BACKHOE FOR THE GLENSIDE/VERDE DEL CIERVO SEWER REPLACEMENT PROJECT IN LAFAYETTE/DIABLO. DP 4925 Mr. Dolan, General Manager-Chief Engineer, stated the V & M Construction/Backhoe is the low bidder. Staff is prepared to recommend award of the contract for the GlensideNerde Del Ciervo Sewer Replacement Project to V & M Construction/Backhoe. It was moved by Member Menesini and seconded by Member Dalton, that award of contract in the amount of $71,324 for the Glenside/Verde Del Ciervo Sewer Replacement Project in Lafayette/Diablo be authorized to V & M Construction/Backhoe as the lowest responsible bidder. There being no objection, the motion was unanimously approved. b. REJECT ALL BIDS FOR FURNISHING AND INSTALLING ONE COMPRESSED NATURAL GAS FUELING STATION. DP 30028 Mr. Dolan, General Manager-Chief Engineer, stated that only one bid was received and that bid was twice the estimated cost of the project. Staff recommends that the bids be rejected. This project may be reconsidered as part of a future budget at which time it is hoped that more bids will be received. 07 01 93 150 It was moved by Member Rainey and seconded by Member Hockett, that all bids received for furnishing and installing the Compressed Natural Gas Fueling Station Project, DP 30028, be rejected. There being no objection, the motion was unanimously approved. 7. PERSONNEL ADOPT AN ORDINANCE AND RESOLUTION AUTHORIZING EARLY RETIREMENT SERVICE CREDIT a. Mr. Paul Morsen, Deputy General Manager, stated that due to the difficult financial times facing the District, staff has been pursuing various cost savings and cost containment strategies. One of the alternatives being considered is early retirement service credit. Under the 1937 County Retirement Act, the District has the ability to purchase up to two years of additional service credit for eligible employees who are fifty years of age or more and have ten years or more of service credit. Mr. Morsen reviewed the calculations of possible cost savings for Fiscal Years 1993- 1994 and 1994-1995 with regard to various alternatives estimating the number of retirements and the number of positions that would be refilled using retirements dates of September 1, 1993 and January 1, 1994. Following discussion of the constraints of the County retirement office with regard to the eligibility and the number of years of service credit to be offered, it was moved by Member Menesini and seconded by Member Rainey, that Ordinance No. 187 be adopted, amending the District Code to adopt therein by reference the provisions of Government Code Section 31641 .04 relating to early retirement service credit, and that Resolution No. 93-068 be adopted, permitting an additional two years of service credit for District service for eligible members who retire between July 15, 1993 and August 31, 1993. In the discussion that followed, President Clausen stated that he could support the early retirement service credit program for one year only and proposed that the ordinance be amended to include the following: "This ordinance shall be effective only pursuant to a resolution of the Board specifying terms and conditions and duration of its application." Member Menesini and Member Rainey, the maker of the motion and the second, agreed that the above motion be amended to provide for modification of the ordinance as proposed by President Clausen. The motion was unanimously approved on the following roll call vote: AYES: Members: Menesini, Rainey, Dalton, Hockett, Clausen NOES: Members: None ABSENT: Members: None a. 8. CORRESPONDENCE NOTE RECEIPT OF LETTER DATED JUNE 14. 1993 FROM MR. DONALD HARDIN. OF LAFAYETTE. REQUESTING THAT VALLEY WASTE MANAGEMENT OFFER THE OPTION OF MINI-CAN SERVICE: CONSIDER DRAFT RESPONSE Member Menesini expressed concern that those who compost are penalized. Mr. Dolan, General Manager-Chief Engineer, stated that is an artifact of the current rate-setting system. Mr. Dolan stated that it would be appropriate to consider this issue during the rate-setting process next fall. However, anytime the cost is reduced for one service element, the overall cost of other service elements must increase incrementally. It was the consensus of the Board that receipt of the letter dated June 14, 1993 from Mr. Donald Hardin, of Lafayette, requesting that Valley Waste Management offer the option of mini-can service be noted and the draft response be approved. 07 01 93 151 9. APPROVAL OF MINUTES MINUTES OF ADJOURNED REGULAR MEETING OF JUNE 10. 1993 a. Mr. Parke L. Boneysteele, resident of Walnut Creek and former Member of the Board of Directors, requested that the seventh sentence in the last paragraph on page 4 be amended to read: "At the hearing, a representative of the State Water Resources Control Board (SWRCB), John O. Nelson, Manager of the Clean Water Grant Program for the SWRCB, said that should the Board decline to go through with the water reclamation plan, the grant would not be given. n President Clausen requested that the following sentence be added to the fifth paragraph on page 5: "He indicated that a $20 increase in the Sewer Service Charge does not even recover last year's tax loss and the salary and benefit obligation of the third year of the Memoranda of Understanding." It was moved by Member Menesini and seconded by Member Hockett, that the minutes of the Adjourned Regular Meeting of June 10, 1993, be approved with the amendments noted above. There being no objection, the motion was unanimously approved. a. 10. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED JULY 1. 1 993 Member Menesini, member of the Budget and Finance Committee, stated that he and Member Hockett reviewed the expenditures and found them to be satisfactory. Staff was helpful in answering many questions but some remain unanswered at this time. It was moved by Member Menesini and seconded by Member Hockett, that the Expenditure List dated July 1, 1993, including Self-Insurance Check Nos. 100698- 100701, Running Expense Check Nos. 75955-76249, Sewer Construction Check Nos. 12645-12718, and Payroll Check Nos. 31542-31835, be approved as recommended. There being no objection, the motion was unanimously approved. None a. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 12. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that Member Menesini has indicated a concern in fulfilling his responsibilities regarding expenditure review as a member of the Budget and Finance Committee. A number of questions have indicated that a review of the expenditure review procedure at the staff level would be beneficial. A site visit has been scheduled for 2 p.m. on Monday, July 19, 1993. Purchasing will review O&M procedures, Engineering will review capital procedures, and Accounting will review payment procedures. In order to put the issue of expenditure approval into context, it is essential that it be understood to be part of a much larger process: namely, the process of procurement of goods and services. The field visit on July 19 will focus on the payments aspect of the process. At the July 15, 1993 Board Meeting, Mr. Ken Laverty, Purchasing and Materials Officer, will present an overview showing the checks, balances and controls which exist in the procurement/payment process. Mr. Dolan stated that in his view, the Board approval of expenditures constitutes a safety net and information exchange mechanism which is appropriately redundant to the internal review procedures and provides an opportunity for the Board to become aware of the full nature of District purchases and to redirect staff efforts retrospectively. At the Board Meeting of June 17, , 993, Mr. John Larson, Collection System Operations (CSO) Department Manager, gave a presentation on 07 01 93 152 work redesign efforts at CSO and later at the Strategic Planning Workshop, it became apparent that there were some concerns and differences of opinion on the Board regarding the issue of the consultant procurement process at the District particularly with regard to management consultant services. As the Board will learn, the District has effective rules which provide for the integrity of the procurement process, and those rules are followed. Mr. Dolan stated that the collective confusion on this issue stemmed from mixing up authority limits from the capital program with operating limits. Within the present operating procurement procedures, there is not a staff limit of authority over which management consultants would come to the Board. Internally, there are signature authority limits at various levels. The budget approval and expenditures review are the controls. Mr. Dolan stated that there is a need to change the procedures. Mr. Dolan proposed that a resolution be adopted imposing a $25,000 limit for management-type consultants. Staff will draft such a resolution for the Board's consideration, including specific descriptions of the categories that are narrow enough so the Board agenda and the business of the District will not be bogged down with a multiplicity of contracts but broad enough to give the Board the control they need. President Clausen stated that he had an unavoidable commitment and would have to leave the meeting early. At this time, President Clausen departed from the order of the agenda to consider Item 14., Closed Session. 14. CLOSED SESSION Prior to adjourning to closed session, Mr. Kenton L. Aim, Counsel for the District, announced that the two Contra Costa Waster District (CCWD) lawsuits against the District, Nos. 238047 and 258786, have passed or CCWD will allow them to pass the point at which they will be dismissed for lack of action. Mr. Aim stated that he will advise the Board when the cases have officially been dismissed. a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The titles of the litigation discussed were: 1) James Hessler and Eleonore A. Hessler v. Tracor Aerospace, CCCSD, et ai, No. C91-02197 2) Acme Landfill Corp. v. Althin CD Medical, Inc., CCCSD, et ai, No. C91- 4268 VRW 3) Nicholas James Maples; Beth Maples v. CCCSD, No. C91-00052 b. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. c. INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District has decided to initiate or is deciding whether to initiate litigation. At 5:53 p.m., President Clausen declared the closed session to discuss litigation pursuant to Government Code Sections 54956.9(a), (b), and (c). At 6:23 p.m., President Clausen left the closed session and left the meeting. At 6:40 p.m., President Pro Tem Dalton concluded the closed session and reconvened the meeting into open session. 07 01 98 153 15. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION It was the consensus of the Board, with President Clausen being absent, that settlement of the CalRecovery claim be authorized, the details of the settlement will be made part of the public record when and if the other signatories to the agreement agree. It was moved by Member Menesini and seconded by Member Hockett, that the Central Contra Costa Sanitary District (CCCSD)/Tracor Aerospace, Inc. Mutual Agreement for Investigation and Remediation and the Agreement to Ratify Addenda Nos. 1, 2, and 3 to the December 13, 1990 Agreement between CCCSD/TracorlWoodward Clyde Consultants, be approved. There being no objection, the motion was approved with President Clausen being absent. At this time, President Pro Tem Dalton reverted to the order of the agenda. a. 2. 12. REPORTS GENERAL MANAGER-CHIEF ENGINEER 2) Mr. Dolan, General Manager-Chief Engineer, stated that when the Capital Improvement Plan Scenario B item was placed on the agenda, it was anticipated that the State Budget would be signed and the District would be losing the remainder of its ad valorem tax revenue. However, based on information just received from Mr. Mike Dillon, of the California Association of Sanitation Agencies (CASAL it appears that enterprise districts are not in jeopardy in the current year. Enterprise districts' exposure will be in future years. So for the moment at least, staff believes that while the District still lost the $3.2 million in ad valorem tax revenue last year and made up for a portion of that ($2.7 million) this year, there is some hope that the ad valorem tax revenue will remain intact. The Capital Improvement Budget and Sewer Service Charge rate setting were based on this premise and the Equipment Budget was contingent upon retaining the remainder of the ad valorem tax revenue. Staff proposes no changes in either budget at this time, but will keep the Board apprised. 3) Mr. Dolan stated that staff is still planning to come to the Board at the August 5, 1993 Board Meeting with a response plan to the outcome of the Strategic Planning Workshop. The Board will recall the discussion at the Workshop of placing the District's mission statement on the business cards. There is a time constraint in that along with the new telephone system, the District will be getting a new telephone number, 228-9500. It was suggested by an employee that comments might be invited from employees on the draft mission statement before it is formally adopted by the Board. Following discussion, it was the consensus of the Board, that the mission statement not be printed on the District business cards at this time and that written comments on the draft mission statement be requested from interested employees. Those comments will be tabulated and presented to the Board for consideration. 4) Recognizing that Member Hockett has a real interest in the Work Redesign Project at the Collection System Operations (CSO) Department, Mr. Dolan stated that a session has been scheduled for Member Hockett to provide an opportunity for both a presentation on the effort and an informal exchange of information and ideas. This has been scheduled on Thursday, July 8, 1993, from 1 :30 p.m. to 3:30 p.m. at CSO. Any Board Members who are interested are welcome. COUNSEL FOR THE DISTRICT None 07 01 93 154 3. SECRETARY OF THE DISTRICT None 4. BOARD MEMBERS None 13. ANNOUNCEMENTS None 14. CLOSED SESSION This item was taken out of order earlier in the agenda. 15. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION This item was taken out of order earlier in the agenda. 16. ADJOURNMENT There being no further business to come before the Board, President Pro Tem Dalton adjourned the meeting at the hour of 6:58 p.m. /Presid of the Board of Directors, , al Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 07 01 93