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HomeMy WebLinkAboutBOARD MINUTES 12-15-94 225 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 15, 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 December 15, 1994. President Rainey called the meeting to order. The Secretary of the District administered the Oath of Office to Susan McNulty Rainey and Parke L. Boneysteele, who were elected to the Board of Directors at the election held on November 8, 1994. At the conclusion of the ceremony, the Secretary was joined by Board Members and District staff in congratulating President Rainey on her reelection to the Board of Directors and welcoming Member Boneysteele back to the Board of Directors. Member Boneysteele made a brief statement in which he recognized the responsibility placed upon him as a result of following Member John Clausen on the Board, congratulated President Rainey for her magnificent showing at the polls, and noted that his reelection to the Board after being defeated is a first in the District's 49-year history. Member Boneysteele thanked all those who voted for him and supported his campaign, including the Central Contra Costa Sanitary District Employees' Association, his friends at Rossmoor, the Tri-Valley Herald for its endorsement, and the Contra Costa Times and Rossmoor News for their interviews and subsequent articles. President Rainey echoed Member Boneysteele's comments particularly thanking the employees of the District for their support. President Rainey requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Dalton, Hockett, Boneysteele, Rainey ABSENT: Members: None 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR Following discussion, it was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The contract work for the Los Arabis Drive/Woodland Way Sewer Project, DP 4785, was accepted and filing of the Notice of Completion was authorized. Motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Dalton, Boneysteele, Rainey None None b. The request of Mr. Clinton Jackson, Plant Operator III, for an emergency withdrawal of $25,000, after taxes, from the Deferred Compensation Plan was approved as recommended by the Deferred Compensation Plan Advisory Committee. 12 15 94 226 Motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Dalton, Boneysteele, Rainey None None c. The Central Contra Costa Sanitary District Sexual Harassment Policy was adopted. Motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. Hockett, Menesini, Dalton, Boneysteele, Rainey None None The attendance of Ms. Bonnie Allen, Risk Manager, was authorized at the Emergency Response and Recovery Conference on January 8-10, 1995, in Savannah, Georgia, with the costs to be covered by project funds. Motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Dalton, Boneysteele, Rainey None None Resolution No. 94-105 was adopted, confirming that publication has been made of District Ordinance No. 193, Amending Sections 4.028.010, 4.028.020, and 4.028.030, Sexual Harassment Policy. e. Motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Dalton, Boneysteele, Rainey None None President Rainey thanked Members Menesini, Dalton, and Hockett for their work on the District's Sexual Harassment Policy. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Mr. Roger J. Dolan, General Manager-Chief Engineer, requested that Item 1 O.a .2) LAIF Report, be taken out of order to accommodate interestèd persons in the audience, and that Item 5.a., Solid Waste, be taken out of order following the closed session later in the meeting. Hearing no objection, President Rainey proceeded to Item 10.a.2). a.2) 10. BUDGET AND FINANCE LOCAL AGENCY INVESTMENT FUND (LAIF) INVESTMENTS Mr. Dolan, General Manager-Chief Engineer, stated that over the past year the District has been preparing through Tax and Revenue Anticipation Notes and bond financing to provide funds to pay for the District's ambitious construction program. Member Boneysteele has shared his concern for investment options and security of the Local Agency Investment Fund (LAIF) account. A representative of LAIF is present to provide information on LAIF and respond to any questions the Board may have. 12 15 94 227 Mr. Dolan introduced Ms. Deborah Ratcliff, Controller, who provided an overview of the cash flow and investment activity, noting that the District began of the current year with approximately $1 5 million in the LAIF account. The LAIF account continues to be drawn down. The current balance is approximately $3.6 million. If the Board decides to pull all District funds from the LAIF account, another liquid account must be found to allow for the necessary cash flow for the District's Capital Improvement Program. Ms. Ratcliff stated that possible alternatives include: 1 ) Investing in weekly commercial paper, and rolling over the balance on a weekly basis. The down side of this investment strategy is that it is very labor intensive and would result in higher County fees. 2) Investing several million dollars in short term Treasury bills to use as a cushion, rolling the balance over on a monthly basis. The down side of this option is that the District may have to sell some bills before maturity, and there is a risk of principal and interest loss. Ms. Ratcliff stated that these options are being reviewed with the District's financial advisor, Stone and Youngberg, and their opinion is being requested. Ms. Ratcliff stated that staff recommends that a LAIF account be maintained but that the investment in LAIF be significantly reduced from historical levels, and that funds not immediately required be , invested in Treasury bills. If the Board chooses to direct staff to withdraw all District funds from LAIF, one of these other short-term investment strategies must be implemented. Ms. Ratcliff introduced Ms. Pat Beale, of the Local Agency Investment Fund (LAIF), who discussed the LAIF investment policy and the mix in the LAIF portfolio. Ms. Beale stated that LAIF was begun in 1977 to fill a need identified by California public agencies. Legislation was written in a very protective way for the State of California and local agencies who invest in LAIF. The Government Code specifically sets forth investment options and protects the monies from being seized or assessed by other State agencies or officials, nor can the monies be borrowed against. LAIF was intended to be an alternative to other investment opportunities and not to replace them. Ms. Beale described the prudent investments used by LAIF, the management strategy, procedures and timing of maturities, and distributed copies of the State Treasurer's Office Statement of Portfolio Management Goals, Objectives and Policies for Pooled Money Investment Account used by LAIF. Ms. Beale discussed the status of the LAIF investments in comparison to the Orange County situation, stressing that security, safety and liquidity are foremost to LAIF with yield being secondary to security. Discussion followed with respect to the investment strategy of the State Treasurer, the State funds behind LAIF, the liquidity of LAIF, and the market value of LAIF investments compared to obligations to investors. Mr. Dolan, General Manager-Chief Engineer, stated that in the near future decisions will be made with regard to the District's investments. In the past, the policy of the District has been to maximize the District's investment in LAIF to the extent practical. In the future, the question may be whether to get out of LAIF altogether. After review, staff feels that withdrawing from LAIF is not a good idea. He suggested that the best alternative may be to scale back investments in LAIF and invest more funds with short- term maturities maturing monthly, and maintaining a balance between Treasuries and LAIF investments. He asked if there was any Board objection to such a strategy. The Board raised no objection. There being no further discussion, President Rainey thanked Ms. Beale for taking the time from her busy schedule to address the Board on this important and timely topic. At this time, President Rainey reverted to the order of the agenda. 12 15 94 --------- ------- -- ------ ----------------------- 228 a. 5. SOLID WASTE CONSIDER REQUEST BY VALLEY WASTE MANAGEMENT. ORINDA-MORAGA DISPOSE-ALL. AND FRANCISE FIORENTINO FOR PAYMENT OF LEGAL FEES INCURRED IN THEIR DEFENSE OF THE ACME LANDFILL CERCLA LITIGATION This item was taken out of order later in the agenda. 6. ENGINEERING a. AUTHORIZE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A RECYCLED WATER PLANNING AGREEMENT WITH EAST BAY MUNICIPAL UTILITY DISTRICT Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Jim Coe, Associate Engineer, who stated that the District is in the process of acquiring an abandoned Shell Oil pipeline for the purpose of distributing recycled water. Mr. Coe described the recycled water distribution system and potential customers. In January 1995, work will begin on a Facilities Planning Study which will look at institutional issues between East Bay Municipal Utility District (EBMUD) and the District. Discussion followed concerning the level of activity to be completed under the authorization of the proposed agreement and the need for more Board and Committee involvement in the area of recycled water. Members Rainey, Hockett, and Boneysteele expressed support for recycled water efforts and encouraged staff to more forward expeditiously. Member Menesini expressed a concern for the lack of information presented to the Board in the past relative to this issue. His concern was not with the recycled water project but with the process and Board involvement. Member Menesini stated that his comments are directed towards the communications aspect and the need for the Board to have a role in setting policy. To address the communications issue, Member Boneysteele suggested that an agenda procedures workshop be held. Mr. Dolan, General Manager-Chief Engineer, stated that the idea of a Board retreat has been discussed and this may be an appropriate item for consideration at that time. Following discussion of the contract provisions and language, it was moved by Member Menesini and seconded by Member Boneysteele, thatthe General Manager-Chief Engineer be authorized to execute the Recycled Water Planning Agreement with East Bay Municipal Utility District. There being no objection, the motion was unanimously approved. 7. PERSONNEL a. APPROVE INCREASE IN COMPENSATION RANGES FOR THE CONTROLLER AND HUMAN RESOURCES MANAGER EFFECTIVE DECEMBER 21, 1994 Mr. Dolan, General Manager-Chief Engineer, explained that pursuant tothe Memorandum of Understanding which the Board entered into with the Managers, the District has completed a salary study of selected management positions. This study has been endorsed by the Board Personnel Committee. It was moved by Member Hockett and seconded by Member Dalton, that effective December 21, 1994, the salary range for the position of Controller be adjusted upward from Range M-33 ($5,289-$6,429) to M-29 ($5,837-$7,093), and that the salary range for the position of Human Resources Manager be adjusted upward from Range M-39 ($4,560-$5,544) to M-37 ($4,791-$5,823). There being no objection, the motion was unanimously approved. 8. APPROVAL OF MINUTES a. MINUTES OF NOVEMBER 17. 1994 It was moved by Member Menesini and seconded by Member Dalton, that the minutes of November 17, 1994, be approved as presented. There being no objection, the motion was approved with President Rainey abstaining because she was not present at the meeting of November 17, 1994. 12 15 94 229 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED DECEMBER 1 5. 1 994 Member Menesini, Chair 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 December 15, 1994, including Self-Insurance Check Nos. 100898-100903, Running Expense Check Nos. 86045-86259, Sewer Construction Check Nos. 86044 and 14965-15051, and Payroll Check Nos. 36872-37150, be approved as recommended. There being no objection, the motion was unanimously approved. 10. BUDGET AND FINANCE a. RECEIVE NOVEMBER 1994 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of November 1994, noting that expenditures were $232,000 less than budget, representing a 10.2 percent favorable variance. For the five months ended November 30, 1994, expenditures were $1,125,000 less than budget, representing a 9.8 percent favorable variance. O&M revenues of $1.2 million were 20 percent favorable to budget. Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 3.7 percent to 5.59 percent. The latest interest rate as of May 1 994, was 5.1 5 percent. The average yield for the LAIF account through October 1994 was 5.2 percent. Mr. Dave Reindl, Associate Engineer, reported on the District's Cogeneration Project, DP 6069, reviewing major milestones on the project. Mr. Reindl stated that on the basis of cost savings and improved reliability from on-site production of power, the Board of Directors approved the project in December 1991. Because of the long lead time required, the gas turbine was pre purchased in April 1993. Final design was completed and the installation contract was awarded to Monterey Mechanical in May 1994. The Cogeneration Project is scheduled for completion by mid-May 1995. Mr. Reindl reviewed the components of the project budget totalling $6,085,000, and showed slides of the current construction work on the project. President Rainey and Member Menesini complimented Mr. Reindl on his informative report and the tour he conducted earlier in the week. Mr. Jarred Miyamoto-Mills, Principal Engineer, reported that the District had a competitive sale of long-term $25 million 1994 Revenue Installment Certificates on December 6, 1994, five hours before Orange County declared bankruPtcy. The District received the highest rating available to sanitary districts by Standard & Poor's and Moody's, of AA and Aa respectively. The sale was also prequalified in addition to these ratings allowing sale as AAA insured rather than at the District's underlying rating of AA. Eight bids were received. The lowest bid of 6.391 percent by Morgan Stanley was well below the 1994 Capital Improvement Plan projection of 6.7 percent. The closing will be held on December 19, 1994 and proceeds from the sale will be received on December 21, 1994. Mr. Miyamoto-Mills acknowledged the Project Team Members, Tom Lockard of Stone & Youngberg, Michael Castelli of Jones Hall Hill & White, District Counsel Kent Aim, and District staff Debbie Ratcliff, Jarred Miyamoto-Mills, Collette Curtis-Brown, Russ Leavitt, John Mercurio, and Steve Elsberry, for their efforts. President Rainey declared that the November 1994 Financial Statements were duly received. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12 15 94 230 a. 12 1 2. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Collection System Operations (CSO) Department Manager John A. Larson, who reported on the M-4 pipeline emergency repair. Mr. Larson stated that Martinez residents are served by a series of three pumping stations and two 20-inch diameter force mains. The first pressure pipe, Line A, is 26 years old and the second, Line B, was installed two years ago to provide redundancy. Each line can carry the entire flow. On November 28, 1994, a leak was reported on Line B in the vicinity of Marina Vista off ramp from Highway 680. The total overflow was about 1,500 gallons. The flow was diverted from Line B to Line A. On November 29, 1994, a leak was reported on Line A adjacent to the Southern Pacific Railroad tracks. By December 1, 1994, the leaks on Line A caused during installation of fiber optics communication cable by Southern Pacific were located and temporarily repaired. The District has been forced to use Line B. Because of storage limitations at the pumping stations, the pumps had to be turned on intermittently using the leaking force main, resulting in a 7,500 gallon overflow. Line A is now in service with permanent repairs scheduled for the summer of 1995. Line B is under evaluation for cause and location of leak(s). Mr. Larson stated that the emergency work was an excellent example of interdepartmental and interagency teamwork. Pumping Station Operations, Plant Operations, Engineering, and CSO worked together smoothly. Communication and coordination were excellent. The District, Mt. View Sanitary District, Contra Costa County Environmental Health, and Southern Pacific Railroad worked together very well with an excellent spirit of cooperation. In response to questions from the Board, Mr. Larson stated that no fines have yet been assessed by the Regional Board. The District is keeping track of the cost of the short term efforts to repair Line A. Claims will be made to Southern Pacific Railroad. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that letters of appreciation be drafted to Mt. View Sanitary District, Contra Costa County Environmental Health, and Southern Pacific Railroad for their cooperation. There being no objection, the motion was unanimously approved. 2) Mr. Dolan, General Manager-Chief Engineer, reported that since the issue of solid waste franchising in the unincorporated areas of Central County was last discussed, Contra Costa County announced that it has negotiated a 20- year franchise agreement with Waste Management for collection of waste in the unincorporated areas. The agreement initially directs waste to the Altamont Landfill, but also provides for consideration of other disposal options. District staff has been in contact with the community leader in the Alamo area concerning this matter. The Central Contra Costa Solid Waste Authority (CCCSWA) has sent a letter to the Board of Supervisors which summarizes CCCSWA's position on this matter and the urgency of the issue. Copies of that letter were provided to the Board. President Rainey stated that the County's action is particularly upsetting given the communication with the County on the status of the CCCSWA Request for Proposals (RFP) for solid waste collection, recycling, and disposal. It is difficult to believe the County would negotiate with Waste Management without having the courtesy of letting CCCSWA know. CCCSWA Board Members Gene Wolfe and Susan McNulty Rainey were appointed to a subcommittee to meet with County representatives before the December 20, 1994 meeting of the Board of Supervisors in an effort to secure County cooperation on the RFP. Formal contact by CCCSWA has been made with the Members of the Board of Supervisors. President Rainey stated that any input or assistance from other District Board Members in that regard would be helpful. 15 94 b. c. d. 231 3) Mr. Dolan, General Manager-Chief Engineer, announced that Assistant Engineer (Solid Waste) Elaine Jacobs, Assistant Engineer Don Berger, and Planning Assistant Russ Leavitt visited four household hazardous waste facilities in Southern California, in addition to household hazardous waste operations in the Bay Area. After the first of the year, they will make a presentation to the Board. 4) Mr. Dolan, General Manager-Chief Engineer, announced that a boom truck is being purchased as part of the Pleasant Hill Relief Interceptor Project to operate diversion gates on the pipeline. The boom truck is being purchased through a negotiated bid process. The estimated cost is $95,000. The boom truck will also be used on the Plant site and in the field as necessary. 5) Mr. Dolan, General Manager-Chief Engineer, announced that the District is currently advertising for bids for the Auxiliary Boiler Rehabilitation Project. The engineer's estimate for the project is $140,000. 6) Mr. Dolan, General Manager-Chief Engineer, advised the Board that his year- end messages to employees have just been completed. 1994 was a great but extremely demanding year at the District, and that he is looking forward to the exciting projects and activities scheduled for 1 995. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT 1 ) Following discussion, it was the consensus of the Board that the January 19, 1995 Board Meeting be rescheduled for 3:00 p.m. on Tuesday, January 17, 1995 because of a conflict with the California Association of Sanitation Agencies (CASA) meeting. - BOARD MEMBERS 2) None 1 ) Solid waste issues were discussed earlier in the agenda in conjunction with Engineer's Report Item 2. Following explanation by Member Hockett, Chair of the Personnel Committee, it was moved by Member Hockett and seconded by. Member Dalton, that authorization be given to fill the vacant Chemist 1/11 position. There being no objection, the motion was unanimously approved. 13. ANNOUNCEMENTS 14. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title ofthe litigation discussed was Acme Landfill Corp. v. Althin CD Medical, Inc., CCCSD, et ai, U.S. District Court No. C91-4268 SBA. At 5:37 p.m., President Rainey declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a). At 6:50 p.m., President Rainey concluded the closed session and reconvened the meeting into open session. 12 15 94 232 1 5. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION Mr. Kenton L. Aim, Counsel for the District, stated that Counsel for the District was given instruction by the Board with regard to a number of matters relating to litigation, but no settlement or other item that would require reporting occurred in closed session. At this time, President Rainey proceeded to Item 5., Solid Waste. a. 5. SOLID WASTE CONSIDER REQUEST BY VALLEY WASTE MANAGEMENT. ORINDA-MORAGA DISPOSE-ALL. AND FRANCISE FIORENTINO FOR PAYMENT OF LEGAL FEES INCURRED IN THEIR DEFENSE OF THE ACME LANDFILL CERCLA LITIGATION Mr. Kenton L. Aim, Counsel for the District, summarized the status of the requests for reimbursement of legal fees by Valley Waste Management (VWM), Orinda-Moraga Dispose-All (OMD), and Francise Fiorentino, noting that the Board considered this matter previously. No final determination was made as to what portion, if any, of the amounts included in the rate structure and impounded by the District should be paid to VWM and OMD. Mr. Aim stated that the District has taken no action to create an impound account related to defense costs incurred by Franchise Fiorentino (Valley Disposal). The decision with regard to reimbursement has been delayed for a number of reasons, but it would seem appropriate to resolve the matter at this time. The negotiated agreement with VWM for the remainder of the franchise agreement includes litigation costs in the rate base. Mr. Aim stated that the OMD position is rather different. The rate structure does include projected legal fees for 1995, and those fees will continue to be impounded. The issue will be revisited both with regard to reasonableness of the legal fees and whether or not the fees should be borne by the ratepayers. Payment of any portion of the fees should not be considered admitting to liability or to the proportional share. Payment should be considered a business decision and a compromise or settlement of a dispute. In response to a question from President Rainey concerning recovery of insurance proceeds, Mr. Aim stated that any payments should be made only under the following conditions: 1 ) Any payments by the District should be treated as advances, to be repaid out of future insurance proceeds, when and if obtained. 2) Any advance of defense costs to the collectors should be conditioned upon each company diligently pursuing its potential insurance claims as well as claims made on behalf of the District as an additional insured. 3) Any action taken by the District regarding defense costs must clarify that the pass-through of such costs is distinct from the issue of the ultimate respective liability among the parties, if any is imposed. 4) Any defense costs deemed eligible for reimbursement or pass-through, should be reviewed to insure that only costs which are necessary, reasonable, allowable, and allocable be paid by the District out of the impound accounts. 5) A cap should be placed on any payment amount so that the amount to be paid the collector will not exceed that provided for in the rates through the impound account for 1 993 and 1994 and shall not exceed the amount of money actually paid by the franchisee to the District for this purpose. Mr. Aim noted that to date, OMD has not fully funded its impound account. Mr. Aim stated further that a copy of the letter dated December 15, 1994 from Mr. Randall D. Morrison, of Crosby, Heafey, Roach & May, the attorneys for VWM, was provided to the Board and will be included in the record. Mr. Randall Morrison, of Crosby, Heafey, Roach & May, addressed the Board on behalf of VWM requesting that the Board grant more than the 75 percent of allowable legal costs 12 15 94 233 recommended because the role assumed by VWM and its attorneys in the litigation has been of great benefit to the District and its ratepayers. In addition, the newly-negotiated contract now has VWM assuming the risk for future attorneys' fees. Mr. Morrison stated that VWM should be reimbursed for legal expenses incurred up to the amount of the impound account; and after the present time, VWM will incur the risk for litigation fees. Mr. Dolan, General Manager-Chief Engineer, stated that the Hilton Farnkopf & Hobson analysis of VWM rates that could result simply from the disposal of waste at the Altamont at a lower cost resulted in a from 20.5 percent to 23 percent reduction. In the negotiations between VWM and the District, VWM asserted that the reduction should only be 20 percent because in the future VWM's legal fees would be higher. Mr. Morrison agreed that VWM's legal fees in the future will be higher than in the past, but stated that the component used in the rate structure was based on historical costs and is not adequate. Mr. Morrison stated that VWM will not pull back from the defense, but should be compensated for those defense costs. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that 75 percent of the allowable legal costs of the current franchisee, Valley Waste Management, be found to be fund able from the impound account for the rate years of 1993 and 1994 after a staff determination that the legal expenses claimed are necessary, reasonable and allocable; and that the following conditions for payment be met: 1 ) Any payments by the District should be treated as advances, to be repaid out of future insurance proceeds, when and if obtained. 2) Any advance of defense costs to the collectors should be conditioned upon each company diligently pursuing its potential insurance claims as well as claims made on behalf of the District as an additional insured. 3) Any action taken by the District regarding defense costs must clarify that the pass-through of such costs is distinct from the issue of the ultimate respective liability among the parties, if any is imposed. 4) Any defense costs deemed eligible for reimbursement or pass-through, should be reviewed to insure that only costs which are necessary, reasonable, allowable, and allocable be paid by the District out of the impound accounts. 5) A cap should be placed on any payment amount so that the amount to be paid the collector will not exceed that provided for in the rates and actually paid into the impound account for 1 993 and 1 994. Motion unanimously approved on the following roll call vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Hockett, Dalton, Boneysteele, Rainey None None Following discussion, it was moved by Member Hockett and seconded by Member Menesini, that 75 percent of the allowable legal costs of the current franchisee, Orinda- Moraga Dispose-All, be found to be fundable from the impound account for the rate years of 1993 and 1994 after a staff determination that the legal expenses claimed are necessary, reasonable and allocable; and that the following conditions for payment be met: 1 ) Any payments by the District should be treated as advances, to be repaid out of future insurance proceeds, when and if obtained. 12 15 94 234 2) Any advance of defense costs to the collectors should be conditioned upon each company diligently pursuing its potential insurance claims as well as claims made on behalf of the District as an additional insured. 3) Any action taken by the District regarding defense costs must clarify that the pass-through of such costs is distinct from the issue of the ultimate respective liability among the parties, if any is imposed. 4) Any defense costs deemed eligible for reimbursement or pass-through, should be reviewed to insure that only costs which are necessary, reasonable, allowable, and allocable be paid by the District out of the impound accounts. 5) A cap should be placed on any payment amount so that the amount to be paid the collector will not exceed that provided for in the rates and actually paid into the impound account for 1993 and 1994. Motion unanimously approved on the following roll call vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Dalton, Boneysteele, Rainey None None Mr. Aim stated that he contacted the attorney for Francise Fiorentino to advise him that this matter would be on this agenda and inquired whether they would want their issue readdressed. Mr. Aim stated that he received no response. It was moved by Member Hockett and seconded by Member Dalton, that payment of legal costs for Francise Fiorentino not be authorized at this time. Motion unanimously approved on the following roll call vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Dalton, Menesini, Boneysteele, Rainey None None At this time, President Rainey reverted to the order of the agenda. 16. ADJOURNMENT There being no further business to come before the Board, President Rainey adjourned the meeting at the hour of 7: 12 p.m. ,ßj. ih~h:A ~'- President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: 12 15 94