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HomeMy WebLinkAboutBOARD MINUTES 10-07-04 I I I 61 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 7, 2004 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 2:00 p.m. on October 7,2004. In the absence of President Lucey, President Pro Tem Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Nejedly, Hockett ABSENT: Members: Lucey President Lucey had previously advised staff that he would be out of town and unable to attend this meeting. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . RECOGNIZE SASHA MESTETSKY ON HIS PROMOTION TO ASSOCIATE ENGINEER President Pro T em Hockett and the Board of Directors congratulated Associate Engineer Sasha Mestetsky on his recent promotion. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR Member Menesini requested that Consent Calendar Item b. be removed from the Consent Calendar for discussion. It was moved by Member Menesini and seconded by Member Nejedly, that Consent Calendar .Items a. through d. excluding Item b., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. A Quitclaim Deed to Diablo Country Club (Club House Road, Diablo) was approved; the President of the District Board of Directors and the Secretary of the District were authorized to execute said Quitclaim Deed on behalf of the District; staff was authorized to record the documents with the Contra Costa County Recorder; and Resolution No. 2004-067 was adopted to that effect. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey 10-7-04 62 c. Grants of Easements related to the Lafayette Sewer Renovation Project, Phase 4, DP 5661, were accepted from Ann Beemer Loar, and William B. Plummer and Jil Plummer; staff was authorized to record said Grants of Easements; and Resolution Nos. 2004-070 and 2004-071 were adopted to that effect. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey d. The contract work by McGuire and Hester for the Walnut Creek North Main Street Sewer Project, DP 5700, was accepted; and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey With regard to Consent Calendar Item b., discussion followed with regard to the Bentley School location, relocation of the sewer alignment, and the location Of the abandoned sewer line. Following discussion, it was moved by Member Menesini and seconded by Member Nejedly, that a Quitclaim Deed be approved to Bentley Schøol, 1000 Upper Happy Valley Road, Lafayette, DP X1529, Parcel 10, and DP 1538, Þarcel 7; that an Offer of Dedication be accepted at no cost to the District from Bentley School of the easement offered in the Irrevocable Offer of Dedication recorded May 6,2002, Series 2002-0160002-00; that public sewer improvements, DP 5592, be actepted; that staff be authorized to record said documents with the Contra Costa County ~ecorder; and that Resolution Nos. 2004-068 and 2004-069 be adopted to that effect. :. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT F ORDER None 5. REPORTS a. I I Mr. Charles W. Batts, General Manager, stated that Di,trict staff met with the Contra Costa County Employees' Retirement Assoþiation (CCCERA) and their actuary to review the actuarial report and cal ulation of the District's Unfunded Actuarial Accrued Liability (UAAL). These items were the basis of the proposed retirement rate increase to b effective July 1, 2005 for the 2005-2006 fiscal year. In summary, the D strict's retirement payment will increase by almost 20 percent or $1.2 million annually. This issue will be discussed during the 2005-2006 Financial Planning Board Workshop. i I i GENERAL MANAGER 1) 10-7-04 I I I 63 I Mr. Batts introduced Mr. Randall M. Musgraves, Director of Administration, who provided an overview, stating that the retirement rates will be effective July 1, 2005. The rate increase equals 6.25 percent of employee compensation, a 20 percent or $1.2 million increased cost to the District. The District's UAAL will go from $27.3 million to $30.4 million as of December 31,2003. Mr. Musgraves reviewed payments made by the District to CCCERA over the past five years beginning with $3.5 million in 2001-2002 and increasing to $7.5 million in 2005-2006, and noted that the following modifications or adjustments totaling 6.25 percent of salary were made to the employer contribution rate reconciliation from December 31 , 2002 to December 31,2003 for the Total Plan: . Effect of investment (gain/loss) Delay in implementation Salary increase more than expected Change in normal cost (demographic changes) Change in benefit (2% at 55) Change in actuarial assumptions Other 0.24% 0.14% 0.75% 0.50% 0.11% 4.54% (0.03)% . . . . . . Mr. Musgraves stated that CCCERA is trying to fund for future liabilities and recognize past actual experience. Mr. Musgraves reviewed the largest adjustment of 4.54 percent, the change in actuarial assumptions, stating that change was based on: . Change in salary scale 1.69% . Unused sick leave conversion 0.70% . Investment return assumption 0.86% I . Safety disability mortality 0.28% . Change in withdrawal rate 0.34% . Other 0.67% Mr. Musgraves stated that prior to 2002 there was never an actuarial study for the District's UAAL. In 2002, the District UAAL was $27.3 million. It has now increased to $30.4 million. That $30.4 million will be spread over 20 years and rates adjusted to pay for the UAAL. The District has 19 years of payments remaining. CCCERA investment income is a significant component of rate increases and unfunded liability increases. CCCERA averages both increases and decreases in investment income over five years. CCCERA actually obtained a 16.5 percent return on investment this year, but is only reporting a 7.8 percent return because of the five year average. The other factor that contributes to the unfunded liability is distribution of excess earnings. Over the past 22 years, distribution of excess earnings in the amount of $864,000,000 has subsidized the following: . Employer COLA benefit costs Employee COLA benefits costs Buy down of employer basic contribution $201,000,000 $109,000,000 $159,000,000 . . I These are the three retirement plan components that the District pays for through CCCERA. Excess earnings have also been used to subsidize: . Enhanced benefits (2% at 55; 3% at 50) $100,000,000 . Paulson settlement (portion) $ 90,000,000 . Retiree health insurance reimbursement to County $ 83,000,000 . $200/month retiree benefit prior to 1983 $ 23,000,000 . All Other $ 99,000,000 10-7-04 64 Mr. Musgraves stated that CCCERA has actually applied $864,000,000 in excess earnings predominantly to employers, but to employees as well. Mr. Musgraves stated that the "percent of funding of the system" is the level or percentage of funding of assets to liabilities. The annual CCCERA level of funding is between 81 and 89 percent and averages about 85 percent. In the industry, that seems to be a reasonable level of funding. Few plans are at 100 percent. Prior to the drop in interest income, it was said that CCCERA was superfunded, meaning that CCCERA was at or near the 100 percent funding level. Mr. Musgraves used a chart to explain the way in which CCCERA determines the District's unfunded liability and retirement rates. Earlier this year Contra Costa County funded its unfunded liability through debt service bonds. That forced the retirement association to split out the County by itself for rate calculation purposes away from special districts. At the same time safety and general pensions were split out for separate calculations. In the past the Board has questioned whether this District subsidizes the County in terms of retirement contributions. Mr. Musgraves stated it does not, there is a very small amount of funds in the retirement plan pool but most of the funds are put into what is called "buckets." "Buckets" is a term for a specific category of retirement plan using the same calculation formula. Mr. Musgraves explained the process used by the actuâry in: determining unfunded liability. The tiers and enhancements are determined and that is used to determine amounts applicable to the District. The District is grouped with others with like retirement benefits such as Diablo Water District, lronhouse Sanitary District, and so on. In that grouping or "bucket," Central Contra Costa Sanitary District (CCCSD) represents 67% of the total payroll. Mr. Musgraves stated that staff attempted to do a comparison between CCCERA and CaIPERS. It is very difficult to get an accurate comparison. The District's CCCERA retirement benefit of 2% at 55 appears better than 2% at 55 under CaIPERS. There are many different components in such a comparison. One example of this is the disability retirement benefit. If the District were serious about doing an accurate one to one comparison, it would be necessary to go through a very complete process of reviewing all of the benefits. Delta Diablo Sanitation District (DDS D) just went through this process. It cost DDSD between $10,000 and $15,000 to determine whether it would be beneficial to move to CalPERS or not. DDSD moved to the 2.67% benefit level at CaIPERS, but they also were required to use average income over three years for payment calculations and there are other issues that they traded benefits for. When DDSD costed it out, changing plans was a net wash for them. DDSD had a past practice where they have paid the cost of employees' CCCERA "COLA" increases through salary increases. CCCSD does not have that practice. It is very difficult to say exactly whether there is a match between CalPERS and CCCERA for this District. Discussion followed with regard to interest on investments being greater than a year ago, the interest rates assumed and actually earned by CCCERA and CaIPERS, and the fact that retirement funding is highly dependent on the economy. President Pro T em Hockett thanked Mr. Musgraves for his report. 2) Mr. Batts, General Manager, introduced Mr. Sash a Mestetsky, Associate Engineering, to provide an update on the Lower Orinda Pumping Station Renovation Project, DP 5448. Mr. Mestetsky used a map to describe the location of the Lower Orinda Pumping Station and surrounding area near the Orinda County Club golf course. The Lower Orinda Pumping Station is the District's oldest pumping station at 50 years old. The hydraulic 10-7-04 I I I I I I 65 capacity is limited during the wet weather season, and the electrical and mechanical equipment is outdated. The scope of this project includes replacing all electrical instrumentation and mechanical equipment as well as enlarging the footprint to accommodate a new standby generator and other equipment. The contractor on this project is Pacific Mechanical Corporation. The construction contract in the amount of $5,696,000 was awarded on December 4, 2003, and is scheduled to be completed by December 31,2005. Mr. Mestetsky showed photographs and described the preconstruction and current status of the shoring system for the pump room and wet well extension, the electrical room concrete framework and current status ready to receive new equipment, and the valve vault and piping that will allow bypass pumping if required. Future milestones include planned completion of the dry weather system in March 2005 and scheduled completion of the wet weather system in October 2005, with both the dry and wet weather systems being completely operational by December 2005. Mr. Mestetsky stated that staff successfully met several challenges on this project, including limited space and the need to maintain operation during construction, proximity to the creek, location of several unknown underground structures, and construction work next to an active country club golf course. The access road has been realigned and a protective fence has been installed to protect workers from golf balls. Mr. Mestetsky briefly discussed concern about the ability of the electrical and instrumentation subcontractor to meet schedule. As mentioned previously, the construction contract amount is $5,696,000. To date, work totaling $1,411,000 has been completed and there have been change orders totaling $39,000. Following discussion of the Dickerson easement and the concern about the electrical subcontractor meeting schedule, President Pro Tem Hockett thanked Mr. Mestetsky for his update. 3) Mr. Batts, General Manager, reported that last week the District's contractor on the M-3 Renovation Project, K. J. Woods Construction, began construction of the relocation of a 300-foot section of the M-3 Line, a 36-inch gravity sewer that is part of the Martinez system in Waterbird Way to the District. This line is a critical component of the Martinez Pumping Station system. The existing sewer was constructed in very soft soil and has settled several feet creating a sag. The M-3 Renovation Project was designed to relocate the existing 36-inch pipe into stable soil in the public roadway. During excavation for the new pipe, the contractor . uncovered soil that appeared contaminated. Soil samples sent for ~ laboratory testing have shown the presence of motor oil and diesel organics, and vanadium. This contamination prohibits disposal of the soil in a Class 3 landfill, and requires disposal in a Class 2 landfill. The project site is next to a drainage ditch and the Fish and Game permit requires the construction to be finished by October 31,2004. Since construction needs to be completed by the end of October, and no suitable temporary storage area has been found for the contaminated soil, staff has directed the contractor to begin off hauling the contaminated materials to a Class 2 landfill.. Since the geotechnical borings and groundwater testing done during design did not identify any contamination, the District included as contingency only a small quantity of Class 2 landfill spoils. The cost of disposal in a Class 2 landfill is significantly higher than in a Class 3 landfill. Assuming that all the trench material will have to be disposed in a Class 2 landfill, and depending on the actual quantity, a change order on the order of $200,000 might be required. The District is performing additional testing as new material is excavated so that only the contaminated materials will be disposed in a Class 2 landfill. 10-7 -04 ......-------... .... .....-.--...........-...--....-...---.-...-. --...-.--.-.....-. ----.----.---.---.---.---- 66 4) Member Nejedly asked if the District has any recourse against the firm that did the geotechnical work since this contamination was not identified. Mr. Batts stated that he does not believe so since only a handful of borings were done, but staff is looking into that and will keep the Board advised. Following discussion of the need to dispose of the material, Mr. Batts stated that a position paper requesting authorization of a change order for the disposal of the contaminated material will be provided at a future Board Meeting. I Mr. Batts, General Manager, announced that Human Resources Manager Cathryn Freitas will be attending the International Public Management Association for Human Resources Conference in Phoenix, Arizona from October 18 through 20, 2004. Ms. Freitas will be using her Management Education and Training Allowance. 5) Mr. Batts, General Manager, announced that Engineering Support Supervisor Bill Clement will be attending the Urban and Regional Information Systems Association Annual Conference in Reno, Nevada from November 7 through 10, 2004. This conference offers training on the application of geographic information system (GIS) data for public agencies. This training in included in the Conference and Training budget. . 6) Mr. Batts, General Manager, announced that Human Resources recruited to fill two vacant Engineering Assistant III positions in the Development Services Section of the Environmental Services Division. These positions were previously authorized by the Board. The principal area of responsibility for the first position is Field Inspection, and the other position's principal area of responsibility is Plan Review. To provide staff development and improve coverage these Engineering Assistants will be cross-trained. District employee Amy Hernandez competed and was selected as the top candidate for both positions. Ms. Hernandez will work in Plan Review and the vacant position in the Field Inspection work group has been offered to an outside candidate who is currently on the Engineering Assistant III list. I 7) Mr. Batts, General Manager, stated that in the regulatory area, the Bay Area Clean Water Agencies (BACWA) has worked with the Regional Water Quality Control Board (RWQCB) to develop an approach to improve performance of collection systems by reducing overflows. This cooperative approach gives agencies a chance to have input into the process while furthering the RWQCB's goal of reducing sanitary sewer overflows (SSO's). The approach includes a guidance document called a Sewer System Management Plan (SSMP). In October, BACWA and the RWQCB are holding six one-day seminars around the Bay Area for agency personnel that will acquaint them with an SSMP and some ideas and approaches on how to best meet the various collection system goal areas. Several District Collection System Operations (CSO) supervisors will attend the seminars. Field Operations Superintendent Bill Echols will be a presenter for one of the goal areas at the seminars. Both Mr. Echols and Dr. Gail Chesler, from the District, have been active on the BACWA Collection System Committee. I Member Menesini requested a copy of the curriculum, if one is available. Collection System Operations Division Manager John Pearl stated that he has a copy, and will provide it to Member Menesini. 8) Mr. Batts, General Manager, announced that California Association of Sanitation Agencies (CASA) members testified before the House Transportation and Infrastructure Committee Subcommittee on Water Resources and Environment, on the increasing number of frivolous citizen 10-7-04 I I I b. 67 lawsuits. Subcommittee Char Jimmy Ducan (R-TN) cited the term "green greed" from the Santa Rosa Press Democrat for citizen suits against public agencies already under enforcement actions. Several recommendations were made to the Subcommittee and CASA will continue to work with the Subcommittee on this issue. 9) Mr. Batts, General Manager, announced that the District has received the check due to the District as the final payment in the settlement with Morris Pumps relating to the Moraga and Orinda Crossroads Pumping Stations Modifications Project. As directed by the Board, an appropriate letter was drafted and sent to Mr. John Kelly of Morris Pumps, thanking him and Morris Pumps for resolving this issue in a cooperative manner. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, reported on the status of the receiver's efforts to sell the remaining Lomow properties in Idaho as a result of the lawsuit brought by the District a number of years ago against Mr. Doug Lomow, owner of Orinda Moraga Disposal Service. Mr. Aim stated that in 1997 the District obtained a judgment and since that time has had the services of a receiver appointed by the Court, to attempt to obtain funds that were siphoned out of the corporation and sent elsewhere. The judgment was for approximately $9 million. As the District has recovered all its out-of-pocket costs, expenses and interest, the Court ordered that the next $2 million would go to the ratepayers/citizens of Orinda and Moraga. There are two remaining pieces of real estate in Idaho to be sold. The properties have been appraised and the value of the two properties is in the $700,000 to $800,000 range. For approximately the last three years the properties have been marketed through a legitimate real estate firm; but while there have been some offers, the properties have not sold. The Court that administers the receivership in Idaho has ordered that these two pieces of property be put up for auction. The auction will take place the last week of this month. If bids are received, they will go to the Court in Idaho and if they are approved, the sale will occur. If the prices are too low or no bids are received, the properties will continue to be marketed commercially. There is currently $185,000 in the receiver's account. If funds are received from these sales, there could be between $400,000 to $750,000 in the account and available for return to the ratepayers of Orinda and Moraga. Direction would be sought from the Court in that regard. ~ Discussion followed with regard to how and to whom the funds would be returned, and the fact that the previous judge has retired and a new judge will consider this. The receiver will make a recommendation to the Court as to how this should be done. Mr. Aim stated that he will keep the Board informed. Member Menesini requested and received information on the amount of the judgment received, attorney and consulting fees involved, and the funds received to date. Mr. Aim stated that the District has been reimbursed for all costs and fees, with the exception of very minimal attorney fees during the past year. 2) Mr. Aim, Counsel for the District, reported regarding notification of the City of Martinez of understanding of the mutual annexation policy. When extension of sewer service to the Alhambra Valley was discussed at a recent Board Meeting, one of the issues raised by one of the members of the public that spoke was whether extension of a sewer line into Alhambra Valley would require the area to be annexed into the City of Martinez. Mr. Aim responded that it would not because in 1986 the District had changed its annexation policy and now the Local Agency Formation Commission (LAFCO) makes that determination. A letter has been received from the 10-7-04 68 3) City of Martinez stating that they were operating under the assumption that the mutual annexation policy was still in effect. Research has been done. In accordance with changes in the LAFCO law, the District's policy was changed in 1986 to provide that the District will cooperate and support mutual annexation, but ultimately the decisions made with regard to annexation will be left to LAFCO. At that time, the District went to the City and it was the District's understanding from the City staff report and letters from that time, that the City had agreed to the modification of the mutual annexation policy. However, the City does not have records of whether the City officially adopted a new policy or not. A letter had been drafted to the City stating that and providing documentation. Mr. Aim, Counsel for the District, announced that a copy of a letter has been received from the State Water Resources Control Hoard indicating that they will continue to hold the petition of the Bay Area Clean Water. Agencies (BACW A) relative to the Central Contra Costa Sanitary District's National Pollutant Discharge Elimination System (NPDES) permit in abeyance until August 23, 2005. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1) Member Nejedly, Chair of the Household Hazardous Waste Committee, distributed and reviewed notes from the September 30,2004 Household Hazardous Waste Committee meeting. Topics of discussion at that meeting included the 2003-2004 Household Hazardous Waste Collection Facility Annual Report and ongoing continuous improvement review. 2) Member Boneysteele, Chair of the Budget and Finance Committee, reported that he and Member Boneysteele met with staff to discuss District finances and the District investment policy, and to review the expenditures. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated October 7,2004, including Self Insurance Check Nos. 102145-102153, Running Expense Check Nos. 151944-152207, and Sewer Construction Check Nos. 27016-27073, be approved as recommended. There being no objection, the motion was approved with President Lucey being absent. 6. ADMINISTRATIVE a. CONSIDER ADOPTION OF RESOLUTION SUPPORTING PROPOSITION 1A TO PROTECT LOCAL TAXPAYERS AND PUBLIC SAFETY SERVICES Mr. Batts, General Manager, stated that the California Special Districts Association and those associations representing both the cities and counties have been working with the Governor and the State Legislature to develop a plan to protect local revenues while addressing the current State budget crisis. Concessions have been made on all sides. Proposition 1A is the resulting bipartisan measure that will appear on the November ballot. It is recommended that the District take a formal position of support for Proposition 1 A. It was moved by Member Nejedly and seconded by President Pro Tem Hockett, that Resolution No. 2004-072 be adopted, supporting Proposition 1A to protect local taxpayers and public safety services, and that staff be directed to forward a copy of this resolution to Yes on 1A - Californians to Protect Local Taxpayers and Public Safety. Motion approved on the following vote: 10-7-04 I I I I I I 69 AYES: Members: Nejedly, Hockett, Menesini, Boneysteele NOES: ABSENT: Members: None Members: Lucey 7. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH SUNGARD HTE. INC. FOR THE PURCHASE AND IMPLEMENTATION OF ITS "CUSTOMER INFORMATION SYSTEM" UTILITY BILLING DATABASE SOFTWARE FOR ADMINISTRATION OF THE SEWER SERVICE CHARGE PROGRAM AND RECYCLED WATER CUSTOMER BILLING Mr. Batts, General Manager, stated that over ten years ago the District computerized the administratiol1 of the Sewer Service Charge program. Database software was custom-written for the District to generate the annual application of Sewer Service Charges to the County tax roll, and to provide for direct billing of entities who do not receive tax bills. The custom software program has served the District well over the years, but staff is now recommending that it be replaced along with the upgrading of the rest of the financial information system. Mr. Batts introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who stated that the current software was custom-written for the District in 1994. It has been serviceable, but it is cumbersome to operate. It is difficult and expensive to update and upgrade, and it is not supported by HTE for maintenance or training. The custom software must be substantially upgraded or replaced to work with the new version of the standard financial information management system. It is recommended that the current custom software be replaced with HTE's standard "Customer Information System" for Sewer Service Charge and Recycled Water billing programs, and that this be moved forward to 2004-2005 coincident with the new user interface, rather than waiting to 2005-2006 when this project was originally planned. The project budget is $152,000. The benefits of the standard software package are that as a component of the District's overall financial information management system, HTE will support, maintain and update it as part of the annual maintenance agreement; the HTE User's Group influences priority of improvements, and the software will be used to efficiently collect over $43 million in Sewer Service Charges and $250,000 in Recycled Water revenue each year. Following discussion, it was moved by Member Boneysteele and seconded by Member Menesini, that the General Manager be authorized to execute an agreement with Sungard HTE, Inc. for the purchase and implementation of its "Customer Information System" utility billing database software for administràtion of the Sewer Service Charge program and Recycled Water customer billing. There being no objection, the motion was approved with President Lucey being absent. - 8. CORRESPONDENCE a. NOTE RECEIPT OF LETTER ADVISING THAT THE DISTRICT WILL RECEIVE THE NATIONAL PURCHASING INSTITUTE. INC. ACHIEVEMENT OF EXCELLENCE IN PROCUREMENT AWARD Mr. Batts, General Manager, stated that notification has been received from the National Purchasing Institute (NPI) that the District has been selected to receive the NPI Achievement of Excellence in Procurement Award for 2004. When the award is received, a formal presentation will be made to the Board of Directors. Receipt was noted of the letter advising that the District will receive the National Purchasing Institute, Inc. Achievement of Excellence in Procurement Award, and Purchasing staff was recognized for their outstanding efforts. 10-7-04 70 9. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 2. 2004 It was moved by Member Menesini and seconded by President Pro Tem Hockett, that the minutes of September 2,2004 be approved as presented. There being no objection, the motion was approved with President Lucey being absent. 10. BUDGET AND FINANCE a. RECEIVE AUGUST 2004 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance (O&M) for the month of August 2004, noting that expenditures were $605,000 less than budget, representing a 17.3 percent favorable variance. Year-to-date O&M expenditures were $1 million less than budget, representing a 13.7 percent favorable variance. Year-to-date O&M revenues of $356,000 were $48,000 greater than budget. Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $3,324,000 and expenditures were $4,200,000, cutting into reserves by $881,000. Mr. Ratcliff reported that the District's temporary investments were held in commercial. paper, bankers' acceptances, Treasury bills, and the District's Local Agency In'lestment . Fund (LAIF) account. The average yield of the District's LAIF account through August 2004 was 1.67 percent. President Pro Tem Hockett declared that the August 2004 Financial Statements were duly received. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 13. ADJOURNMENT There being no further business to come before the Board, President Pro Tem Hockett adjourned the meeting at the hour of 3:45 p.m. resident of th 0 rd of Dir tors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: u- í. Sec et ry f the Central C ntr C ta Sam District, County of Contra Costa, State of California 10-7-04 I I I