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HomeMy WebLinkAboutBOARD MINUTES 06-02-94 108 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 2, 1 994 The District Board of the Central Contra Costa Sanitary District convened in regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 1 :05 p.m. on June 2, 1994. President Rainey called the meeting to order and requested that the Secretary note attendance of Board Members present. PRESENT: Members: Menesini, Dalton, Clausen, Rainey ABSENT: Members: Hockett Member Hockett entered the meeting at the hour of 1 :08 p.m. 1. CLOSED SESSION a. LABOR NEGOTIATIONS With respect to labor negotiations, the closed session was held pursuant to Government Code Section 54957.6 to meet with designated representatives prior to and during consultations and discussions with the representatives of employee organizations regarding salaries, salary schedules or compensation paid in the form of fringe benefits of employees in order to review its position and instruct its designated representatives. The District's negotiator's are Secretary of the District Joyce E. Murphy and Labor Counsel Gerald R. Lucey. and the pertinent employee organizations and individuals are the Central Contra Costa Sanitary District Management Group and Paul Morsen, an individual. b. 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 ) Anne L. McLaurin v. CCCSD, Superior Court of California, Contra Costa County Superior Court No. C93-04225; and 2) Acme Landfill Corp. v. Althin CD Medical, Inc., CCCSD, et ai, U.S. District Court No. C91-4268 SBA. At 1 :05 p.m., President Rainey declared the closed session to discuss labor negotiations pursuant to Government Code Section 54957.6 and existing litigation pursuant to Government Code Section 54956.9(aL At 3:10 p.m., President Rainey concluded the closed session and reconvened the meeting into open session. 2. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 3. ROLL CALL PRESENT: Members: Menesini, Dalton, Hockett, Clausen, Rainey ABSENT: Members: None 4. PUBLIC COMMENTS None 06 02 94 109 5. AWARDS AND COMMENDATIONS LETTER COMMENDING MR. DENNIS HALL. ASSOCIATE ENGINEER. FROM MR. SCOTT PETERSON. PARTNER OF ERNST & YOUNG a. President Rainey noted receipt of the letter from Mr. Scott Peterson, partner of Ernst & Young, commending Mr. Dennis Hall, Associate Engineer, for his courteous and professional assistance. It was moved by Member Menesini and seconded by Member Dalton, that the Board of Directors send a letter to Mr. Hall recognizing him for his efforts on behalf of the District and the public we serve. The motion was unanimously approved. 6. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar consisting of Items a. and b. be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The Second Amendment to Temporary Right to Enter from Contra Costa County, DP 20131, Parcel 005, was approved; the President of the Board of Directors and the Secretary of the District were authorized to execute said Second Amendment to Temporary Right to Enter; and Resolution No. 94-035 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Dalton, Clausen, Rainey NOES: Members: None ABSENT: Members: None b. The Board of Directors were informed of the purchase of two Gas Chromatograph/Mass Spectrometers as previously authorized by the Board. This item was presented for the Board's information. No action was taken. a. 7. HEARINGS HOLD A HEARING AND CONSIDER ADOPTING A RESOLUTION OF NECESSITY FOR THE PURPOSE OF INITIATING ACQUISITION OF A PUBLIC SEWER EASEMENT BY EMINENT DOMAIN FOR THE WOODLAND WAY SEWER REPLACEMENT PROJECT. DP 4785 Mr. Roger J. Dolan, General Manager-Chief Engineer, introduced Mr. Curtis W. Swanson, Principal Engineer, who stated that Board authorization for acquisition of easements by eminent domain for the Woodland Way Sewer Replacement Project, is requested. The sewers in this area are in poor physical condition and the District has experienced a wet weather problem in this area as well. There have been four overflows in this area and the District has only been able to avoid more by an aggressive maintenance schedule. The Woodland Way Sewer Replacement Project is needed to reduce overflows and the high level of maintenance. Mr. Swanson summarized the key issues which must be considered by the Board as follows: . Public interest and necessity require the proposed project. . The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury. . The easements are necessary for the proposed project. 06 02 94 -- --------------,_..__.._- .. .._------ ---------.--. .--- -----_.-._------ 110 . An offer complying with the Government Code has been made to the property owners. Mr. Swanson reviewed the alternatives for the project and stated that each alternative was evaluated on the following factors: cost, future maintenance/repair, community impacts, and environmental impacts. Based on the evaluation, the proposed alternative to construct a new sewer and pipe bridge beneath Creekwood Place, across Las Trampas Creek, and down Fourth Street in Lafayette, is the preferable alternative and the easement is necessary for the project. An informal offer of $5,750, which included payment for damages to property improvements and landscaping, was made to the property owners. After the property owners declined the informal offer, a third party appraisal of the property and easement were ordered. In staff's attempt to provide the property owners with fair market value for their land, the second and higher value of $7,125 was submitted to the property owners as just compensation. After lengthy negotiations, no agreement has been reached. At 3:42 p.m., President Rainey opened the public hearing to receive comments regarding adoption of the Resolution of Necessity to acquire public sewer easement by eminent domain for the Woodland Way Sewer Replacement Project. There being no comments, President Rainey closed the public hearing and returned the matter to the Board for deliberation. It was moved by Member Clausen and seconded by Member Dalton, that Resolution No. 94-036, Resolution of Necessity to acquire a permanent easement by eminent domain for the Woodland Way Sewer Replacement Project, DP 4785, be adopted; and that the filing of an eminent domain action, and other appropriate procedures be authorized. There being no objection, the motion was unanimously approved on the following vote: AYES: Members: Clausen, Dalton, Menesini, Hockett, Rainey NOES: Members: None ABSENT: Members: None b. CONDUCT A PUBLIC HEARING ON THE DRAFT FISCAL YEAR 1994-1995 CAPITAL IMPROVEMENT BUDGET (CIB). DRAFT 1994 TEN-YEAR CAPITAL IMPROVEMENT PLAN (CIPL APPROVE THE 1994 CIP. AND APPROVE THE CIB FOR INCLUSION IN THE 1994-1995 DISTRICT BUDGET c. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE 1994- 1 995 OPERATIONS AND MAINTENANCE BUDGET AND THE SELF-INSURANCE FUND BUDGET AND FOR THE INCREASE AND ESTABLISHMENT OF THE 1994- 1 995 SEWER SERVICE CHARGE RATE AND ON PLACING THE SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Mr. Dolan, General Manager-Chief Engineer, stated that this is a very important day in the process of adopting both the Operations and Maintenance (O&M) Budget and Capital Improvement Budget (CIB) for the District. The CIB will be presented first because this year the total Sewer Service Charge increment is for the CIB and the Board will need the CIB information before making a decision on the Sewer Service Charge. Mr. Dolan introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who presented an overview of the Capital Improvement Budget (CIB) and Ten-Year Capital Improvement Plan (CIP). The 1994 CIP includes $187 million projected expenditures over the ten-year period compared to 1993 CIP projected expenditures of $250 million, for a difference of $63 million. This difference is the result of carefully reviewing projects, deferring some, and rescheduling most in the subsequent ten-year period. Mr. Miyamoto-Mills stated that the balance in the Sewer Construction Fund at June 30, 1994 is projected to be $46 million. It is projected that the Sewer Construction Fund balance will drop over the next several years to approximately $1 5 million, or just to the prudent reserve level of 75 percent of current year's expenditures plus any debt retirement for the year. This projection is based on adding $3 to the Sewer Service Charge for capital facilities upgrade and replacement, a bond issuance of $13 million in 06 02 94 111 the coming year, pursuing $18 million in capital work during the coming year, retaining the remaining ad valorem tax revenue of approximately $5 million, and the presumption that AB 1905 will not pass. Mr. Miyamoto-Mills reviewed the projected sources of revenue, stating that the current level of revenue will not provide adequate funds for planned project work. Mr. Miyamoto-Mills reviewed options for dealing with this shortfall as follows: . Defer additional project work; . Raise Sewer Service Charge; . Issue debt; and . Obtain new funding sources such as the State Revolving Loan Fund. Mr. Miyamoto-Mills reviewed alternative scenarios for funding the CIP, all of which included debt issuance and a Sewer Service Charge increment for capital. It is estimated that $47.2 million previously authorized by the Board will be carried over into the coming fiscal year. Board approval of the CIB will authorize an additional $25.8 million, for a total authorization of $73.1 million for planning, design, and construction of capital improvement projects and will constitute approval of the projects listed in the budget document as exempt under the California Environmental Quality Act (CECA). Mr. Miyamoto-Mills recommended approval of the CIB for inclusion in the District Budget and approval of the Ten-Year CIP as revised to include one-time transfer of approximately $1 million from Running Expense reserves and a $3 increase in the Sewer Service Charge capital facilities upgrade/replacement increment, for a total of $28 for capital. Member Menesini stated that the presentation was very creditable and interesting, and suggested that a public information piece be prepared to accompany the CIB document. Following discussion, Mr. Dolan indicated that staff will look into this suggestion, endeavoring to target the appropriate sector of the public. At this time, Mr. Dolan introduced Ms. Deborah Ratcliff, Controller. Ms. Ratcliff distributed a revision to page 25 of the proposed 1994-1995 O&M Budget manual. The revision provides specific information relating to locations of technical training and conferences which will be incorporated in the budget document. Ms. Ratcliff reviewed the projected and budgeted O&M revenues and expenses for the Fiscal Year ended June 30, 1994, noting that revenues over expenses are anticipated to be $1.9 million compared to a budgeted deficit of $35,000. Ms. Ratcliff stated that over the past three years, the District has experienced an ad valorem tax revenue loss of $10.2 million. The incremental portion of the Sewer Service Charge has netted the District $5.9 million. At the end of the three year period, the District has an anticipated unfunded tax loss of $4.3 million. Ms. Ratcliff stated that staff is very mindful of the economic climate and has maintained a goal of minimizing any increase in the Sewer Service Charge. For that reason, staff recommends: . 1 ) Adoption of an O&M Budget which is as flat as possible; 2) A Sewer Service Charge increase of only $3, or 1.6 percent, which would be fully committed to pay for capital projects; and 3) Transfer of nearly $1 million O&M savings to the Sewer Construction Fund, to help offset the $10.2 million tax loss suffered by the District over the past three years, leaving a prudent reserve in the Running Expense (O&M) Fund. Ms. Ratcliff highlighted the budgeted revenues, expenses, and reserves for the Fiscal Years 1992-1993 through 1994-1995. Total revenues for 1994-1995 of $27.9 million is $102,000 less than presented at the last Board Meeting because a portion of the solid waste franchise fee was transferred directly to the Self-Insurance Fund to help defray the 06 02 94 112 projected costs of Acme litigation associated with solid waste. Revenues are projected to be $27.9 million in 1994-1995, or $497,000 (1.8 percent) greater than 1993-1994 budget. Expenses are budgeted at $27.7 million, or $263,000 (1.0%) over last year's budget. Ms. Ratcliff provided an overview of the current Self-Insurance Fund Budget compared to last year. Revenues over expenses are projected to be $210,000, bringing reserves up to $5.6 million in 1994-1995. Mr. Dolan stated that Sewer Service Charge revenue for operations has remained flat for the last three years. Staff has worked diligently to cut costs, saving approximately $2 million. $1 million of which was transferred to capital to help defray the loss of ad valorem tax revenue. In January 1994, the CIB was prepared anticipating that a $7 Sewer Service Charge increment for capital would be necessary. Because of the efforts of the Department Managers and their staff, only a $3 Sewer Service Charge increment for capital is required. At 4:35 p.m., President Rainey opened the public hearing to receive public comments on the Draft Fiscal Year 1994-1995 Capital Improvement Budget and Draft 1994 Ten-Year Capital Improvement Plan. There being no comments, the public hearing was closed. Member Clausen commended staff for the tremendous job they did this year in reducing projects scheduled for the immediate future, but indicated that these projects wiJIlikely be done in the long-term. Member Clausen stated that the Capital Improvement Plan serves the District very well and will continue to in the future. Member Clausen stated that the $3 increment in the Sewer Service Charge is going to the capital fund but also the time of a number of employees is dedicated to capital projects. Member Clausen stated that this may not be the most cost effective approach, but it is the most compassionate. Member Clausen expressed his support for the CIP and CIB and the $3 Sewer Service Charge increment. President Rainey commended staff for their efforts, stating that it is always difficult to defer projects when there are increasing regulations since it is the District's responsibility to carefully consider the environment and the public. It was moved by Member Clausen and seconded by Member Hockett, that the 1994 Capital Improvement Plan be approved as revised to include a one-time transfer of approximately $1 million from Running Expense reserves and a $28 Sewer Service Charge capital facilities upgrade/replacement increment (a $3 increase); and that the 1994-1995 Capital Improvement Budget be approved for inclusion in the 1994-1995 District Budget. Motion unanimously approved on the following roll call vote: AYES: Members: Clausen. Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None Mr. Dolan thanked Member Clausen for his comments, noting that when Member Clausen first came to the Board of Directors he recommended that the District's long-term plan needed improvement. Member Clausen worked with staff on that. Mr. Miyamoto-Mills and his staff are to be commended, as well, for doing a fine job. President Rainey stated that it is important to note that Member Clausen did encourage the District to develop its current capital improvement planning and budgeting process. It is a valuable spending plan that the Board and staff have been able to adjust as needed. At 4:39 p.m., President Rainey opened the public hearing to receive public comments on adoption of the 1 994-1995 O&M and Self-Insurance Fund Budgets, and on establishment of the 1994-1995 Sewer Service Charge. There being no comments, President Rainey closed the public hearing and returned the matter to the Board for deliberation. President Rainey stated that staff has indicated that the prudent reserve should be approximately $2.6 million; however, the proposed O&M Budget projects a reserve of 06 02 94 113 $3.8 million at June 30, 1995. In addition, a $3 Sewer Service Charge increment has been requested, which will generate approximately $420,000. President Rainey suggested that an additional $420,000 be transferred from the O&M reserve to capital, leaving an O&M reserve of $3.4 million, which is greater than the prudent reserve level. Mr. Dolan stated that the $3 Sewer Service Charge increment will go to capital. Staff does not recommend that the O&M reserve in excess of the prudent reserve level be transferred to capital because an increase in operating expense is anticipated, and would recommend instead that the O&M reserve be used to avoid a future rate increase for operations. Member Clausen stated that because of the uncertainties facing the District, reserves should not be depleted. Member Menesini stated that it is important to get information to the public in terms of what is happening with regard to the District's reserves. Member Hockett commended staff for the recent positive press coverage. communicated well to the ratepayers and the public what is happening. It Member Dalton agreed with Member Clausen that the District must have adequate reserves to face future uncertainties and that those reserves should not be used without full benefit. It was moved by Member Dalton and seconded by Member Hockett, that the 1994-1995 Operations and Maintenance Budget and Self-Insurance Fund Budget be approved for inclusion in the 1994-1995 District Budget; and that Ordinance No. 191 be adopted, setting the Sewer Service Charge at $188 and establishing the 1994-1995 Sewer Service Charge rate schedule. Motion approved on the following roll call vote: AYES: Members: Dalton, Hockett, Menesini, Clausen NOES: Members: Rainey ABSENT: Members: None At 4:51 p.m., President Rainey opened the public hearing to receive public comments concerning collection of the 1994-1 995 Sewer Service Charge on the County tax roll. There being no comments, President Rainey closed the public hearing. It was moved by Member Dalton and seconded by Member Hockett, that Resolution No. 94-037 be adopted, authorizing collection of the 1994-1995 Sewer Service Charges on the County tax roll. Motion unanimously approved on the following roll call vote: AYES: Members: Dalton, Hockett, Menesini, Clausen, Rainey NOES: Members: None ABSENT: Members: None 8. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 16.a., Budget and Finance, and Item 18.d.2), LAFCOConsolidation Issues were taken out of order later in the agenda. 9. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MOUNTAIN CASCADE. INC. FOR THE LOS ARABIS DRIVEIWOODLAND WAY TRUNK SEWER UPGRADE PROJECT. DP4785 Mr. Dolan, General Manager-Chief Engineer, recommended that the Board authorize award of contract for the Los Arabis DrivelWoodland Way Trunk Sewer Upgrade Project to the low bidder, Mountain Cascade, Inc. 06 02 94 114 Following discussion, it was moved by Member Menesini and seconded by Member Dalton, that award of contract be authorized to the lowest responsible bidder, Mountain Cascade, Inc. in the amount of $1,425,119, for the construction of the Los Arabis DriveIWoodland Way Trunk Sewer Upgrade Project, DP 4785. There being no objection, the motion was unanimously approved. b. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO VADNAIS CORPORATION AND AUTHORIZE EXECUTION OF AN ENGINEERING AGREEMENT WITH JOHN CAROLLO ENGINEERS FOR THE 1680/SR24 SEWER RELOCATIONS PHASE 3.B. DP 4956 Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Clausen and seconded by Member Dalton, that award of a contract be authorized to Vadnais Construction, the lowest responsible bidder in the amount of $851,816, for the construction of the 1680/SR24 Sewer Relocations, Phase 3.B, DP 4956; and that the General Manager-Chief Engineer be authorized to execute an engineering agreement with John Carollo Engineers for $133,000. There being no objection, the motion was unanimously approved. 10. ADMINISTRATIVE a. CONSIDER ADOPTION OF A RESOLUTION REQUESTING CONSOLIDATION OF THE ELECTION OF DISTRICT BOARD MEMBERS WITH THE STATEWIDE GENERAL ELECTION ON NOVEMBER 8. 1994. AND CONSIDER DISTRICT REGULATIONS FOR CANDIDATE STATEMENTS Following explanation by Mr. Dolan, General Manager-Chief Engineer, and discussion of the District regulations for candidate statements, it was moved by Member Clausen and seconded by Member Hockett, that Resolution No. 94-038 be adopted, requesting consolidation of the election of District Board Members with the Statewide General Election to be held on November 8, 1994, and that the District's regulations relating to candidate statements be reaffirmed as follows: . That candidates seeking election to the District Board of Directors be responsible for paying the pro rata share of the costs for publication of their respective candidate statements; . That the statements be limited to 400 words; and . That ten (10) percent of the estimated cost of publication of the statement be collected at the time of filing, with the balance due ten (10) days after the election. The motion was unanimously approved on the following roll call vote: AYES: Members: Clausen, Hockett, Menesini, Dalton, Rainey NOES: Members: None ABSENT: Members: None 11. ENGINEERING a. SET JUNE 16. 1994. AT 3 P.M. AS THE DATE AND TIME FOR A PUBLIC HEARING ON THE REVISED RATES AND CHARGES FOR CLASS 1/11 INDUSTRIAL DISCHARGE PERMITS Mr. Dolan, General Manager-Chief Engineer, stated that current rates for industrial permits are set based on the actual costs relating to each permit. It is proposed that the current facility-specific fee be converted to a base permit fee. Exceptional amounts of staff effort for things like formal enforcement action will be billed separately from the permit fee. Staff time will be logged against the function performed rather than the specific permittee. From that, data on actual costs for various functions and management of the process will be generated. It is anticipated that staff will return to the Board in the future 06 02 94 115 for ways to refine this flat fee approach with a recommendation based on quantity and strength of discharge. Staff held a workshop for permittees and feedback from the workshop will be provided to the Board at the June 16, 1994 public hearing. It was moved by Member Dalton and seconded by Member Clausen, that June 16, 1994 at 3 p.m., be set as the date and time for a public hearing on the proposed revisions to the District's rates and charges for Class 1111 Industrial Discharge Permits. There being no objection, the motion was unanimously approved. 12. TREATMENT PLANT a. ADOPT RESOLUTION DETERMINING NOT TO SEEK REIMBURSEMENT FOR COSTS MANDATED BY THE STATE THROUGH AB 3282 PURSUANT TO STATE DEPARTMENT OF FINANCE REQUIREMENT FOR LOCAL AGENCY SPONSORED BILLS Mr. Dolan, General Manager-Chief Engineer, stated that the District requested legislation which resulted in the introduction of AB 3282 by Assembly Member Campbell relative to the District implementing a management demonstration program in connection with projects undertaken on District-owned land. The demonstration projects will test work redesign and total quality management technologies and the benefits to local agencies that could be derived from them. The District will be required to report progress to the State for the next five years. It is recommended that the District adopt a resolution indicating that the District will not require State reimbursement for any of these mandated costs for the reason that the mandate was requested by the District. It was moved by Member Menesini and seconded by Member Clausen, that Resolution No. 94-039 be adopted, determining not to seek reimbursement for costs mandated by the State through AB 3282 pursuant to State Department of Finance requirement for local agency sponsored bills. There being no objection, the motion was unanimously approved. At this time, President Rainey departed from the order of the agenda to consider Item 16.a., Budget and Finance. 1 6. BUDGET AND FINANCE a. AUTHORIZE STAFF TO ENTER INTO AN AGREEMENT WITH PUBLIC FINANCIAL MANAGEMENT. INC. FOR PORTFOLIO MANAGEMENT SERVICES FOR A PERIOD OF ONE YEAR Ms. Deborah Ratcliff, Controller, introduced Ms. Nancy Jones, Managing Consultant, and Mr. Michael Varano, Managing Director, for Financial Management, Inc. Ms. Ratcliff stated that at the May 19, 1994 Board Meeting, when the subject of portfolio management services was last discussed, the Board requested more information. Ms. Ratcliff stated that Public Financial Management, Inc. (PFM), a nineteen-year-old financial advisory firm, manages $7.8 billion in assets for public sector clients. PFM currently services 130 clients nation-wide. Additional background information was provided to the Board with the agenda packet. Ms. Ratcliff stated that PFM would not have access to District funds at any time. The District's investments would continue to be held in trust at Bank of America and the District would continue to have the County make the transactions. Ms. Ratcliff introduced Ms. Nancy Jones, Managing Consultant of PFM, who provided background information on PFM and a partial list of clients. Mr. Michael Varano, Managing Director of PFM, then reviewed the active portfolio management strategies employed by PFM to maximize revenues using the investments the District currently uses. Mr. Varano stated that he, as an active portfolio manager, would work closely with District staff to match investments to the financial needs of the District. Ms. Jones stated that for every transaction, PFM would first talk with District staff regarding cash needs. An investment strategy would then be developed with District staff, and a trade would be formulated and faxed both to the District and the County. The broker dealer would send an independent confirmation of the trade. The securities would be delivered to the bank. The bank would release funds when the securities are 06 02 94 .-.--- 116 received. Ms. Jones stated that PFM is unique in that they do not touch the District's cash or securities. The only compensation received by PFM is 0.13 percent of the assets under management. PFM will meet with District staff quarterly, establishing benchmarks on which to compare the portfolio. Ms. Jones thanked the Board for their consideration and indicated that she would be happy to answer any questions. Mr. Parke L. Boneysteele, resident, voter and taxpayer of the District, addressed the Board, describing his relevant background and experience and stating that he has been attending District Board Meetings consistently for 30 years, 25 years of that time as a Member of the Board of Directors. Mr. Boneysteele addressed the Board relative to use of portfolio management services, asking that the Board go slowly and not be intimidated by the complexity of the issue. Mr. Boneysteele distributed and briefly reviewed a letter setting forth his concerns and questions with regard to securing portfolio management services. Mr. Boneysteele stated that the Board should consider this matter carefully and be very satisfied with the decision. Mr. Boneysteele suggested that the Board request that staff look at other alternatives, investigate the qualifications of the people who will actually be doing the trading, get demonstrations, take one of the District's investment statements and see what an investment advisor could have done using the District's conservative investment strategy. Mr. Boneysteele stated that added return comes as a result of added risk. In closing, Mr. Boneysteele asked that the Board defer action at this time until there has been sufficient time to consider the issue. Mr. Dolan, General Manager-Chief Engineer, stated that the District actively solicited a means to increase returns on investments because of dwindling reserves. The District has been conservative and unsophisticated in its investment policy for years and is now trying to change the level of sophistication without changing the level of conservatism. The District's Controller was asked to look into this matter. At the May 19, 1994 Board Meeting, the Board was presented with background information and asked if they wished to pursue the matter further. The Board asked to receive additional written information about the recommended consultants and to have them make a presentation to the Board. President Rainey thanked Mr. Boneysteele for his concern and the points he raised, agreeing that there are some questions that the Board will wish to ask. President Rainey asked what other firms were considered in addition to PFM, whether information could be generated comparing the District's current investment return with that proposed by PFM, and whether minute-by-minute trading would adversely impactthe Controller's time. Mr. Varano stated that PFM's portfolio managers follow the market minute by minute; however, some months there may be no trades depending on the market and the District's needs. Following discussion, it was the consensus of the Board that this matter be referred to the Board Budget and Finance Committee for further investigation and consideration. At this time, President Rainey reverted to the order of the agenda. a. 13. COLLECTION SYSTEM AUTHORIZE ALLOCATION OF $50.000 FROM THE GENERAL IMPROVEMENT PROGRAM CONTINGENCY ACCOUNT TO COMPLETE THE ACQUISITION OF CERTAIN EQUIPMENT INCLUDED IN THE 1993-1994 EQUIPMENT BUDGET Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Clausen and seconded by Member Menesini, that the allocation of $50,000 from the General Improvement Program Contingency Account be authorized to complete the purchase of one dump truck that was originally included in the 1993-1994 Equipment Budget. There being no objection, the motion was unanimously approved. Member Dalton left the meeting at the hour of 6: 18 p.m. 06 02 94 117 14. CORRESPONDENCE a. NOTE RECEIPT OF LETTER DATED MAY 19. 1994. FROM UNITED STATES CONGRESSMEMBER BILL BAKER REGARDING HR 1076. THE INTERSTATE TRANSPORTATION OF MUNICIPAL WASTE ACT OF 1993; NO ACTION REQUIRED Receipt of the letter dated May 19, 1994, from United States Congressmember Bill Baker regarding HR 1076, the Interstate Transportation of Municipal Waste Act of 1993 was noted. 1 5. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED JUNE 2. 1994 a. Member Menesini, member of the Budget and Finance Committee, stated that he and Member Dalton reviewed the expenditures and found them to be satisfactory. Following discussion, it was moved by Member Menesini and seconded by Member Clausen, that the Expenditure List dated June 2, 1994, including Self-Insurance Check Nos. 100844-100852, Running Expense Check Nos. 82313-82565, and Sewer Construction Check Nos. 141 93-14257, be approved as recommended. There being no objection, the motion was approved with Member Dalton being absent. 16. BUDGET AND FINANCE a. AUTHORIZE STAFF TO ENTER INTO AN AGREEMENT WITH PUBLIC FINANCIAL MANAGEMENT. INC. FOR PORTFOLIO MANAGEMENT SERVICES FOR A PERIOD OF ONE YEAR This item was taken out of order earlier in the agenda. 17. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None Member Clausen stated that he would have to leave the meeting and requested that Item 18.d.1) LAFCO Consolidation Issues, be taken out of order. Hearing no objection, President Rainey proceeded to Item 18.d.1). 18. REPORTS d. BOARD MEMBERS 1 ) President Rainey stated that the election of independent special district representatives to serve on the Local Agency Formation Commission (LAFCO) will be held on Saturday, June 4, 1994. Copies of the list of candidates and qualifications were distributed and discussion of the candidates followed. President Rainey thanked the Board for their input. Member Clausen left the meeting at the hour of 6:25 p.m. At this time, President Rainey reverted to the order of the agenda. 18. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that the on-site education program with the Walnut Creek Intermediate School is a public outreach and education program. Board Member Hockett has been most influential in this program. This program is part of the extensive effort that also includes Member Menesini's work with high school teachers, and 06 02 94 118 06 President Rainey's and Member Hockett's efforts in the community. The on-site education program with Walnut Creek Intermediate School was a demonstration program which taught staff how to communicate with young people and helped get the District's pollution prevention message to several hundred students. It is recommended that the Board authorize continuation of this program. Mr. Dolan introduced Mr. Ken Grubbs, Public Information and Graphics Coordinator, who described the goals of the program designed to meet both the needs of the District and the school. . To promote an understanding of Central San's role in environmental protection; . To actively engage students in learning about pollution prevention; . To demonstrate the relevancy of academics to the work place; and . To provide exposure to role models and identification of career opportunities. These goals were pursued through the following learning activities: . Previsit treatment plant brochure and viewing of Water Environment Federation video about wastewater treatment; . Live, table-top demonstration of wastewater treatment process; . Tour of treatment plant; . Choice of two workshops relating to bioassay, microbiology, chemistry, computer-aid ed-drafting, source control, or computer graphics; and . Take home pollution prevention assignment. Mr. Grubbs stated that the cost of the program, including staff time, was approximately $177 per student. The program was evaluated on an ongoing basis through feedback from participants. All the goals of the program were accomplished and the school presented the District with a Parent Teachers' Association Award at a previous Board Meeting. Member Menesini suggested that the District pursue a plan that involves the teachers so there is some follow-up in the curriculum. Member Menesini also requested that the District look at the possibility of involving high school students in the District's overall education program. Mr. Dolan stated that the staff recommended plan was to continue the existing program for one year and consider changing schools at the conclusion of that year. A high school program could be considered at that time. This would enable the District to follow through on its efforts with Walnut Creek Intermediate School without exceeding our limited resources. Member Hockett stated that the information that is obtained by intermediate school students at the District is integrated into the curriculum at Walnut Creek Intermediate School. Initially, Las Lomas High School was included in the program as well because Walnut Creek Intermediate School is the feeder school for Las Lomas. However, the flat budget constraints and the issue of limited resources was a real priority for the District and the Board. As a result, the high school component of the program was put on the back burner until the initial stage was completed. The District is still looking at a flat budget; and as a result, staff is now looking at streamlining the current on-site education program. 02 94 b. 119 Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that continuation of the on-site education program with Walnut Creek Intermediate School be approved with the proviso that a program for high school teachers and students be investigated. There being no objection, the motion was approved with Members Dalton and Clausen being absent. Member Menesini requested feedback with regard to the Lindsay Museum public education program. Mr. Dolan stated that staff will report back to the Board. President Rainey thanked Mr. Grubbs for his presentation and Member Menesini for his suggestions. 2) Mr. Dolan stated that as a utility with substantial responsibility for the public health and quality of the water environment in Contra Costa, it would seem that it would be appropriate for the District to participate in Vision 2000, the Development of a Contra Costa County-wide Economic Development Strategy, and to contribute $5,000 to help fund the effort. The District's pollution prevention message, adequacy of wastewater system capacity. growth issues, polluting industries versus non-polluting industries, all should be considered in County-wide planning. Mr. Dolan recommended that the Board authorize participation and join in this County- wide planning effort. Member Menesini requested more information with regard to the goals and objectives of the effort. Following discussion, it was agreed that Member Menesini would discuss the matter with Mr. Bud Lake, the Executive Director of Contra Costa Council, the sponsoring agency, and that the matter will then be recalendared for Board consideration. 3) Mr. Dolan, General Manager-Chief Engineer, stated that pursuant to Board approval, the District has had a wastewater permit contract with Acme Fill Corporation for approximately one year. This contract allows Acme to discharge treated leachate to the District on a pilot demonstration basis. Acme has had a number of technical problems with their process and as yet the District is not satisfied with the responsiveness of Acme. Acme has recently changed operating contractors. The District has informed Acme that they must deliver a schedule and plan showing an acceptable test program by June 9, 1994 or else their permit with the District will be terminated and the District will not longer accept their discharge. Mr. Dolan recommended that the Board grant a one-month extension to provide time for the Acme response. It was moved by Member Hockett and seconded by Member Menesini, that the General Manager-Chief Engineer be authorized to extend the Wastewater Permit Contract with Acme Fill Corporation for one month. There being no objection, the motion was approved with Members Dalton and Clausen being absent. 4) Household hazardous waste issues were briefly discussed. President Rainey provided a copy of the County Household Hazardous Waste Program Status Report dated May 26, 1994. This matter was continued to June 16, 1994 for further discussion. 5) Following discussion, a tour of the Headworks Facilities Project was scheduled for 2:00 p.m. on July 7, 1994. COUNSEL FOR THE DISTRICT 1 ) The update on Fair Political Practices Commission (FPPC) regulations relating to gifts was continued to June 16, 1994 due to the lateness of the hour. 06 02 94 120 c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) Discussion of Local Agency Formation Commission (LAFCO) consolidation issues was taken out of order earlier in the agenda. 19. CLOSED SESSION This item was taken out of order earlier in the agenda. 20. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION This item was taken out of order earlier in the agenda. 21. ANNOUNCEMENTS None 22. ADJOURNMENT There being no further business to come before the Board, President Rainey adjourned the meeting at the hour of 7:22 p.m. President of the Board of Dire tors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: S c et ry of the Central C tra C ta Sanitary District. County of Contra Costa, State of California 06 02 94