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HomeMy WebLinkAboutBOARD MINUTES 02-17-94 29 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 17, 1994 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 February 17, 1994. President Rainey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Dalton, Hockett, Clausen, Rainey ABSENT: Members: None 2. PUBLIC COMMENTS None a. 3. AWARDS AND COMMENDATIONS RECEIVE RECOGNITION FROM COMBINED HEALTH APPEAL OF CALIFORNIA AND UNITED WAY FOR DISTRICT EMPLOYEES' GENEROUS GIVING AND FOR THE CONSCIENTIOUS EFFORTS OF THE DISTRICT'S COORDINATING COMMITTEE. JOHN PEARL. CHUCK BATTS. JIM KELLY. RUTH BENNETT. SHIRLEY BENNETT. BILL BRENNAN. TERI HAMMETT. PHIL HUNTSMAN. ELAINE JACOBS. JOSH MARESCA. JONALEA OSTLUND. JANE PARKER. BA THAN. TOM TRICE. AND TIM TULLIS President Rainey noted receipt of the letter from Mr. Brian Fowler, Associate Campaign Director of Combined Health Appeal of California, commending John Pearl, Chair of the District's Coordinating Committee, Co-Chairs Chuck Batts and Jim Kelly, and Committee Members Ruth Bennett, Shirley Bennett, Bill Brennan, Teri Hammett, Phil Huntsman, Elaine Jacobs, Josh Maresca, Jonalea Ostlund, Jane Parker, Ba Than, Tom Trice, and Tim Tullis, for their outstanding effort and commitment, and all District employees who contributed so generously to the campaign. President Rainey presented a plaque from United Way recognizing the District for the highest contributions per capita in the public sector. On behalf of the Board of Directors, President Rainey commended the members of the Coordinating Committee and all District employees for their contributions to Combined Health Appeal of California and United Way. Mr. John Pearl, Plant Maintenance Division Manager, thanked the Coordinating Committee Members for their able assistance, and accepted the commendation and award on behalf of the District and all the employees who made the contributions. 4. CONSENT CALENDAR Following discussion, it was moved by Member Clausen and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through k., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 94-010 accepting work and Offers of Dedication from Carl S. Zocchi and Louis S. Zocchi, Job 4791, Parcel 2, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None 02 17 94 30 b. Resolution No. 94-011 accepting work and Offers of Dedication from Dame Construction Co., Job 4731, Parcel 1, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None c. Resolution No. 94-01 2 accepting work and Offers of Dedication from Dame Construction Co., Job 4931, parcel 1 (A), was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None d. Resolution No. 94-013 accepting work and Offers of Dedication from Marc Anderson, Job 4835, Parcel 2, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None e. Resolution No. 94-014 accepting work and Offers of Dedication from Michael McCombs, et ux, Job 4935, Parcel 3, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None f. Resolution No. 94-015 accepting work and Offers of Dedication from Edward J. Johnson, et ux, Job 4835, Parcel 4, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None g. 02 17 Resolution No. 94-016 accepting work and Offers of Dedication from Jack David Gaynor, et ai, Job 4912, Parcel 1, was adopted and recording was authorized. 94 31 Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None h. Resolution No. 94-017 accepting work and Offers of Dedication from Roy C. Sweet, et ux, Job 4953, Parcel 1, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None i. Resolution No. 94-018 accepting work and Offers of Dedication from H. Robert Hammill, et ux, Job 4919, Parcel 1, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None j. The attendance of James Kelly, Plant Operations Division Manager, was authorized at the Water Environment Federation (WEF) Water Reuse Specialty Conference in Dallas, Texas, at a cost of $800. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None k. The claims for indemnity from Sunrise Hill Associates and the Haist Corporation were denied and referred to staff for further action as required. Motion unanimously approved on the following vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Mr. Dolan, General Manager-Chief Engineer, requested that Item 7a., Engineering, be taken out of order to accommodate interested persons in the audience. Hearing no objection, President Rainey proceeded to Item 7a. 02 17 94 32 a. 7. ENGINEERING INITIATE PROCEEDINGS TO CHANGE THE DISTRICT'S SPHERE OF INFLUENCE (son AND FORMALLY ANNEX 622.12 ACRES OF LAND ADJOINING THE DISTRICT'S EXISTING SOl AND BOUNDARY Mr. Dolan, General Manager-Chief Engineer, stated that this matter, known as the Country Club at Gale Ranch, has been discussed at recent Board meetings and a detailed report was made at the February 3, 1994 Board meeting. At this time, it is recommended that a resolution of application for the annexation of the subject property be adopted and that revision of the District's current SOl be requested. In response to questions from Member Menesini, Mr. Russ Leavitt, Planning Assistant, described the status of the Environmental Impact Report (EIR) on this property. The EIR was certified by the Board of Supervisors but is under challenge by two sets of parties. Mr. Dolan stated that although the EIR is under challenge, the District is obligated to consider that EIR as valid for the District's purposes since the District did not challenge the EIR and the issue of sewer service was not challenged. It was moved by Member Clausen and seconded by Member Hockett, that Resolution No. 94-019 be adopted, initiating proceedings to change the District's sphere of influence and formally annex 622.12 acres of land, known as the Country Club at Gale Ranch, adjoining the District's existing SOl and boundary. There being no objection, the motion was unanimously approved. At 3: 19 p.m., President Rainey turned the meeting over to President Pro Tem Dalton. President Pro Tem Dalton reverted to the order of the agenda. 6. SOLID WASTE a. CONSIDER EXTENSION OF AGREEMENT BETWEEN CONTRA COSTA SOLID WASTE AUTHORITY AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR ONE MONTH. FROM MARCH 31. 1994 TO APRIL 30. 1994 TO ALLOW COMPLETION OF THOSE ACTIVITIES TO WHICH THE AUTHORITY IS COMMITTED AND WHICH ARE NECESSARY TO LEGALLY DISSOLVE THE AUTHORITY Ms. Avon Wilson, Executive Director of the Contra Costa Solid Waste Authority, stated that the Personnel and Administrative Services Agreement between the District and the Authority expires on March 31, 1994. Ms. Wilson requested extension of that agreement to allow completion of required activities to close out the business activities of the Authority . President Rainey returned to the meeting at the hour of 3:22 p.m. Ms. Wilson stated that all activities, with the exception of closing the books and the final audit, should be completed by April 30, 1994. It is anticipated that the books will be closed and the final audit completed no later than June 30, 1994. Ms. Wilson requested that the agreement be extended through the conclusion of the final audit. Ms. Wilson commended Ms. Collette Curtis-Brown, Accounting Supervisor, for the excellent services she has provided to the Authority. It was moved by Member Clausen and seconded by Member Hockett, that the Personnel and Administrative Services Agreement between the District and the Contra Costa Solid Waste Authority be extended to allow sufficient time for completion of the final audit. There being no objection, the motion was unanimously approved. b. CONSIDER REQUEST BY VALLEY WASTE MANAGEMENT. ORINDA-MORAGA DISPOSAL SERVICE. INC.. AND FRANCISE FIORENTINO FOR PAYMENT OF LEGAL FEES INCURRED IN THEIR DEFENSE OF THE ACME LANDFILL CERCLA LlTIGA TION Ms. Lynn Walker, Senior Environmental Counsel for Waste Management, Inc., stated that Valley Waste Management (VWM) strongly maintains that 100 percent pass-through of 02 17 94 33 defense costs in this litigation is appropriate; but in order to avoid a dispute with the District at this time, a compromise is proposed. To the extent that VWM might ultimately bear transporter liability, the relative proportion of the transporter share versus the generator share, may serve as a basis for an interim pass-through allowance. VWM's outside counsel and the District's counsel have discussed whether VWM will ultimately have liability given VWM's defense. Even if VWM were found to have some liability, Ms. Walker stated that she believes that liability would be only a transporter share. As a transporter, the amount of the allocation would be in the 5-10 percent range. Ms. Walker proposed that VWM would accept at least on an interim basis, 90 percent pass-through; although, VWM still maintains that 100 percent pass-through is appropriate. Ms. Walker stated that if the Board were to approve anything less than 80-85 percent, VWM would have to pull out of the Joint Defense Group. Accordingly, Ms. Walker recommended that the Board pass through, at least on an interim basis, 90 percent of VWM's defense costs. Ms. Walker stated that she would be happy to answer any questions. In response to a question from Member Menesini, Ms. Walker stated that under today's law there is an obligation to assure one is not hauling hazardous waste. Other kinds of waste may have special transportation requirements. Waste Management does have an in house waste screening process used before waste is collected. At the time the Acme Fill North Parcel was involved, VWM was hauling only residential waste. While VWM does a hazardous waste screening program at the present time, VWM could still have Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) liability whether or not the waste stream was hazardous. Member Menesini questioned the extent of VWM's participation in this litigation. Ms. Walker stated that Waste Management was involved in the formation of the Joint Defense Group; and in addition to active assistance in drafting pleadings and the like, has tried to bring the group its national experience with this type of issue. In response to a question from Member Hockett, Ms. Walker stated that the joint defense process is very expensive for Waste Management. If VWM has very limited liability, spending hundreds of thousands of dollars in defense costs is not a sound business decision. It is difficult to justify such high defense costs if the ultimate exposure is quite low. However, one of Waste Management's chief reasons for being in the Joint Defense Group is that Waste Management maintains that part of its service to customers is education on a broad variety of topics. In the environmental area, this falls into providing assistance regarding superfund matters. Ms. Walker stated that with the opportunity for pass-through, that time and effort can be justified; without pass-through, it cannot be justified. President Rainey stated that Ms. Francise Fiorentino, as a shareholder of Valley Disposal, has requested reimbursement for legal costs in this matter. President Rainey asked if Waste Management assumed the liability for Valley Disposal through the purchase agreement. Ms. Walker stated that Waste Management maintains that it did not assume any liability. This issue is actively in contention at this time. That is not unexpected in this area. When there are sales agreements that did not necessarily contemplate the possibility of superfund liability, the agreements are not unequivocally clear as to whether responsibility for superfund was assumed. Although this transaction was rather recent, only municipal solid waste was involved. In the 1970's and 1980's, it was not assumed that municipal solid waste had superfund liability. So in that instance, Waste Management thinks the language is such that it did not assume superfund liability. Valley Disposal maintains the opposite position. Mr. Marshall Grodin, former General Manager of Valley Disposal Service (VDS) and representative for Ms. Francise Fiorentino, addressed the Board. Mr. Grodin stated that in general, the same facts and the same arguments as presented by counsel for VWM apply to Ms. Fiorentino and VDS since both were covered by the same franchise agreement. VDS was the franchise holder prior to purchase by Waste Management. VDS had the same rights and duties and obligations under the franchise before they were assigned to Waste Management at the time of purchase. VDS's argument is based on fairness and equity. For many years, the District very tightly regulated VDS. Because of this tight regulation, the risks now being experienced were never anticipated. Mr. Grodin stated that steps have been taken to recoup funds elsewhere. VDS and Ms. Fiorentino are involved in litigation with their former insurance carrier to try to recover costs. There 02 17 94 34 are matters of contention and dispute as to the terms and conditions of the sales agreement. VDS and Ms. Fiorentino have maintained their position of cooperation with the District all along as a contributing member of the Joint Defense Group. VDS and Ms. Fiorentino are not threatening to pull their support from that group and will continue with it regardless of the action taken by the Board today. In response to a question from President Rainey, Mr. Scott Bowen, attorney representing VDS and Ms. Fiorentino, stated that there was a statement in Ms. Walker's letter that shareholders in VDS were shareholders in Acme Fill. VDS itself was a shareholder in Acme Fill. Because of the tight regulation of the District, the benefits from that accrued to the ratepayers. The issue of liability is in contention. In response to a question from Member Menesini, Mr. Bowen stated that VDS and Ms. Fiorentino are participants on the Joint Defense Group, but not members of the steering committee. The idea is to try to cooperate and avoid duplication of efforts and costs. As litigation proceeds, VDS and Mrs. Fiorentino will probably be more involved. Ms. Walker stated that Waste Management is on the steering committee of the Joint Defense Group. Additionally, they have provided technical people. Waste Management is also in litigation with its insurance companies. Mr. Kenton L. Aim, Counsel for the District, stated that it is clear that VWM has been more active in the Joint Defense Group, but Mr. Bowen's comments have merit. Mr. Bowen's firm has offered to take on certain tasks; and if they do so in the future, that may ultimately create a cost savings to the District if the District's legal counsel does not have to assume those tasks. There being no further comments, President Rainey proceeded to Item 16., Closed Session. 16. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation discussed was Acme Landfill Corp. v. Althin CD Medical, Inc., CCCSD, et ai, U.S. District Court No. C91-4268 SBA. Mr. Aim, Counsel for the District, stated that the District is in active litigation on this matter. Discussion will not necessarily be limited to the matters before the Board on this particular issue today. At 4:00 p.m., President Rainey declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a). At 5:03 p.m., President Rainey concluded the closed session and reconvened the meeting into open session. 17. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None At this time, President Rainey reverted to the order of the agenda, returning to Item 6b. b. 6. SOLID WASTE CONSIDER REQUEST BY VALLEY WASTE MANAGEMENT. ORINDA-MORAGA DISPOSAL SERVICE. INC.. AND FRANCISE FIORENTINO FOR PAYMENT OF LEGAL FEES INCURRED IN THEIR DEFENSE OF THE ACME LANDFILL CERCLA LlTIGA TION Member Menesini stated that if the Board is going to pass something on to the ratepayers and if he is to understand what that is, he must have more information. Member Menesini requested information from those requesting recompense for legal services and technical services in terms of putting a cost on those services. 02 17 94 35 President Rainey stated that she would be willing to consider fair, equitable, and reasonable costs that are of benefit to the ratepayers. Following discussion, it was moved by Member Menesini and seconded by Member Clausen, that the seekers of the pass-through of defense costs for the Acme Landfill CERCLA litigation submit to District Counsel prorated costs in generalities for the Board's use in assessing proration of the amount of pass-through for each of the individuals indicated. Following further discussion, the above motion was amended by the maker, Member Menesini and seconded by Member Clausen, that the seekers of the pass-through of defense costs for the Acme Landfill CERCLA litigation submit to District Counsel prorated costs for tasks performed for the benefit of the ratepayers and hours spent on those tasks for the Board's use in assessing proration of the amount of pass-through for each of the individuals indicated. Motion approved on the following roll call vote: AYES: Members: Menesini, Clausen, Dalton, Hockett, Rainey NOES: Members: None ABSENT: Members: None Member Clausen questioned the District's ability to reimburse legal fees incurred by Ms. Fiorentino and VDS in their defense of the Acme Landfill CERCLA litigation, based on the fact that there is not a franchise in existence nor a rate-setting mechanism for collecting the money. Member Menesini stated that if there is justification for payment, Ms. Fiorentino and VDS should submit that justification to District Counsel. It was moved by Member Hockett, that the Board deny pass-through of legal fees for Ms. Fiorentino and VDS based on the fact that the District does not currently have a franchise agreement with them, although there was an historic relationship that existed but is no longer in place. The motion died for lack of a second. Following discussion, it was the consensus of the Board that the information requested in the previous motion be submitted in writing to District Counsel by March 1, 1994. This matter will be calendared for further consideration at the Board meeting of March 17, 1994. 7. ENGINEERING a. INITIATE PROCEEDINGS TO CHANGE THE DISTRICT'S SPHERE OF INFLUENCE (SOn AND FORMALLY ANNEX 622.12 ACRES OF LAND ADJOINING THE DISTRICT'S EXISTING SOl AND BOUNDARY This item was taken out of order earlier in the agenda. b. CONSIDER REQUEST BY THOMAS PROPERTIES FOR DISTRICT PARTICIPATION IN THE RELOCATION OF AN EXISTING SEWER AND SUSPENSION OF FEES Mr. Dolan, General Manager-Chief Engineer, briefly described the situation as set forth in the position paper whereby the District has no recorded easement for the existing sewer that must be relocated to clear a proposed Payless Drug Store building in the Tice Valley area of Walnut Creek. The developer was aware of the pipe before the property was purchased, but is unwilling to move the building or the wall. In the interest of settling this dispute, it appears the District could make a contribution towards relocating the pipe. Mr. Dolan proposed that the District pay for 50 percent of the reasonable costs of relocation of the pipe up to $20,000, and that the District do the design work thereby eliminating the obligation for the developer to pay for design review. Mr. Vince D' Alo, of Aliquot Engineers, representing Thomas Properties, addressed the Board. Mr. D'Alo stated that Mr. Dolan presented the situation accurately. Mr. Thomas did know the location of the sewer; but when he discovered it, he had already made 02 17 94 36 substantial financial agreements with the seller. Payless is unwilling to alter the design of the building. Mr. D' Alo stated that Thomas Properties will contribute 50 percent of the cost of relocation and will withdraw the request to waive the fees. Mr. D' Alo requested that the Board consider that and approve the agreement. Following discussion, it was moved by Member Menesini and seconded by Member Dalton, that the financial participation by the District in Job 5012, the Tice Valley Boulevard Sewer Relocation Project, be approved including contribution of 50 percent of the cost of relocation of the existing sewer up to a maximum of $20,000; preparation of the design of the sewer relocation, thereby eliminating the obligation for the developer to pay for plan review; and basing the inspection fee on 50 percent of the length of pipe which will be installed. There being no objection, the motion was unanimously approved. 8. TREATMENT PLANT a. BOARD ACCEPTANCE OF THE 1 993 SELF-MONITORING PROGRAM REPORT Mr. Dolan, General Manager-Chief Engineer, stated that from a technical performance standpoint, the 1993 Self-Monitoring Program Report is an excellent report. Mr. Dolan introduced Mr. James M. Kelly, Plant Operations Division Manager, who reviewed the mission of the District, "to protect the public health and the environment by collecting and treating wastewater, and returning clean water to the environment." Mr. Kelly stated that the Annual Self-Monitoring Program Report is the District's report card to the Regional Board on how the District has performed over the past year in fulfilling its mission. Mr. Kelly stated that from an historic perspective, most of the minor violations the District has had have been pH, total coliform, and chlorine residual violations. In 1993, the quality of the District's effluent was four to five fold better than our permit standard. This good record was achieved by a lot of good workers in the plant, maintenance and engineering. Mr. Kelly stated that there are a few clouds on the horizon. The District will have a new National Pollutant Discharge Elimination System (NPDES) permit in November 1994. With the new permit, the District will be facing four issues: 1 ) 2) The toxicity standard will become more stringent; The metal standards will become more difficult particularly with regard to copper and mercury; 3) New organics standards will be implemented and it is not yet known whether the District will be able to meet those standards; and 4) The disinfection standard must be achieved, although the Regional Board has allowed the District a modest relaxation of that standard while still protecting the public health. Mr. Kelly stated that installation of the ultraviolet disinfection system and implementation of pollution prevention efforts become more important as the District tries to meet these new standards. In response to a question from Member Menesini, Mr. Kelly stated that violations were largely non-zero chlorine residual violations due to process control and instrumentation problems. By incrementally improving equipment and process control, staff has been able to reduce those violations. President Rainey declared that the 1993 Annual Self-Monitoring Program Report was duly accepted. President Rainey thanked Mr. Kelly for the informative report and commended Plant Operations Department staff for their outstanding efforts. 02 17 94 37 9. CORRESPONDENCE a. NOTE RECEIPT OF LETTER DATED FEBRUARY 3. 1994 FROM MRS. HELEN WORSLEY. OF DANVILLE. REGARDING FREQUENCY OF VALLEY WASTE MANAGEMENT'S SERVICE: CONSIDER DRAFT RESPONSE Following discussion, receipt of the February 3, 1994 letter from Mrs. Helen Worsley, of Danville, regarding frequency of Valley Waste Management's service was noted; and the draft response was approved as modified. 10. APPROVAL OF MINUTES a. MINUTES OF JANUARY 27. 1994 It was moved by Member Menesini and seconded by Member Dalton, that the minutes of the adjourned regular meeting of January 27, 1994, be approved as presented. There being no objection, the motion was unanimously approved. b. MINUTES OF FEBRUARY 3. 1994 It was moved by Member Clausen and seconded by Member Menesini, that the minutes of the regular meeting of February 3, 1994, be approved as presented. There being no objection, the motion was unanimously approved. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FEBRUARY 17. 1994 Member Menesini, member of the Budget and Finance Committee, stated that he and Member Dalton reviewed the expenditures and found them to be satisfactory. It was moved by Member Menesini and seconded by Member Dalton, that the Expenditure List dated February 17, 1994, including Self-Insurance Check Nos. 100798-100808, Running Expense Check Nos. 80307-80585, and Sewer Construction Check Nos. 13788- 13840, be approved as recommended. There being no objection, the motion was unanimously approved. 1 2. BUDGET AND FINANCE a. RECEIVE THE 1993-1994 OPERATIONS AND MAINTENANCE BUDGET REVIEW AND FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31. ~ Ms. Deborah Ratcliff, Controller, summarized the results of the first six months of the fiscal year and projections through June 30, 1994. For the six months ended December 31, 1993, total Running Expense revenues were $14,800,000 or $126,000 more than budget, representing a 0.9 percent favorable variance. At December 31, 1993, total Running Expense expenses were $11 ,958,000 or $1,696,000 below budget, representing a 12.4 percent favorable variance. Surplus at December 31, 1993, was $2.8 million or $1.8 million greater than budget. Ms. Ratcliff reported that it is projected that at June 30, 1994, revenues will be $31,124,000 or $336,000 greater than budget, representing a 1.1 percent favorable variance. It is projected that expenditures will be $26,235,000 or $1,200,000 below budget, representing a 4.4 percent favorable variance. At June 30, 1994, it is projected that the reserve will be $4,089,000. As directed by the Board during the 1993-1994 Sewer Service Charge rate-setting process, the reserve amount was reduced by a transfer from the Running Expense Fund to the Sewer Construction Fund to help defray some of the costs of capital projects. Ms. Ratcliff reviewed projected major variances in revenues and expenses for the fiscal year ended June 30, 1994. 02 17 94 38 Discussion followed in which Mr. Dolan, General Manager-Chief Engineer, noted that the projected savings in expenditures are the result of conscientious efforts by Department Managers to reduce expenses. President Rainey thanked Ms. Ratcliff for her presentation and declared that the 1993- 1994 Operations and Maintenance Budget Review and the Financial Statements for the six months ended December 31, 1993 were duly received. b. RECEIVE JANUARY 1994 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, 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 3.2 percent to 5.9 percent. The latest interest rate as of January 1994 was 3.3 percent. The average yield for the LAIF account through December 1993 was 4.4 percent. Mr. Dolan, General Manager-Chief Engineer, stated that there have been several requests for more information on construction projects. In order to expedite the process, Senior Engineer Ron Klimczak, Shift Supervisor Steve Colberg and Plant Engineering Division Manager Bill Brennan have prepared reports on the Headworks Facilities Improvements and Secondary Clarifier Improvements Projects. Mr. Dolan introduced Mr. Klimczak who showed a video and described the status of the Headworks Facilities Improvements and Secondary Clarifier Improvements Projects. At January 31, 1994, the contract work on the Headworks Project was approximately 63 percent complete. At January 31, 1994, the contract work on the Secondary Clarifier Project was 15 percent complete. Following discussion, President Rainey declared that the January 1994 Financial Statements were duly received. President Rainey thanked Messrs. Colberg, Klimczak, and Brennan for the interesting and improvement report. None a. 02 17 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 14. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that a very important element in the District's conversion to automated mapping is the digitizing of District maps. One of the District's most valuable technological assets is the system of maps for the 1300 miles of District sewers. This system is the product of decades of development and tens of thousands of hours of effort. The maps not only show the location of District pipes, but also contain critical information about materials, size, construction job numbers, and structures. Staff has been implementing the conversion of this function to a computer aided drafting/mapping system pursuant to Board authorization. Staff is now in the process of selecting a service provider for the digital conversion work. Unless the Board objects, Mr. Bill Clement, Engineering Support Supervisor, may visit offices of the top two respondents. One is in Arcata, California and one is in Idaho. This expense will be charged to the capital project. No objections were raised. 2) Mr. Dolan distributed the proposed 1994-1995 Budget Schedule and discussed the proposed meeting dates. Mr. Dolan briefly described recent Brown Act amendments effective April 1, 1 994, which will impact meetings of standing committees of the Board. The proposed 1994-1995 Budget Schedule takes into consideration the recent Brown Act amendments. 3) Mr. Dolan announced that he and President Rainey will be meeting with Contra Costa County representatives on February 28, 1994 to discuss the future role of the District and the County relative to solid waste franchising in the unincorporated areas. 94 39 b. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, distributed information relating to the recent changes to the Brown Act. Due to the lateness of the hour, Mr. Aim's presentation on this subject was continued to March 3, 1994. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) President Rainey reported on the February 5, 1994 workshop conducted by the California Special Districts Association on AB 1335, giving Local Agency Formation Commission (LAFCO) authority to initiate organizational changes of special districts, that she, Member Hockett and Mr. Dolan attended. President Rainey also reported on the February 16, 1994 workshop conducted by LAFCO on AB 1335. 2) Member Menesini reported on the recent meeting of the Friends of the San Francisco Estuary and on his election to the Board of that group. 3) Member Menesini reported on the February 8, 1994 meeting of the Recycled Water Committee. 15. ANNOUNCEMENTS None 16. CLOSED SESSION This item was taken out of order earlier in the agenda. 17. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION This item was taken out of order earlier in the agenda. 18. ADJOURNMENT There being no further business to come before the Board, President Rainey adjourned the meeting ,at the hour of 6:48 p.m. ' 1. '7ty;, kl' ~ u..4,l¡,-/ ILL I J¿lt; ~ --íL,¡(¿¿/ President of the Board of Directors, { Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: S et ry of the Centra Co tra Costa Sanitary District, County of Contra Costa, State of California 02 17 94