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HomeMy WebLinkAboutBOARD MINUTES 05-01-08 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 1, 2008 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, May 1, 2008. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, McGill, Menesini, Nejedly, Lucey ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Board Members welcomed newly-hired Maintenance Crew Member I, Jason Crowe. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF CALIFORNIA WATER ENVIRONMENT ASSOCIATION (CWEA) AWARDS BY CHUCK WEIR, PAST CWEA PRESIDENT Mr. Weir was unable to attend the Board meeting. Following an introduction by General Manager James Kelly, Director of Collection System Operations Bill Brennan presented the following awards to the Board: ?? Collection System of the Year (Over 500 miles) - First Place Award. ?? Film Fest Award: Public Education, Semiprofessional - First Place Award for Collection System Operations Tools Video. ?? Gimmicks and Gadgets - Third Place Award. Book 57 - Page 165 Board Minutes of May 1, 2008 4. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Menesini to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve expenditures dated May 1, 2008. Reviewed by Budget and Finance Committee. b. Receive March 2008 Financial Statements. Reviewed by Budget and Finance Committee. c. Approve minutes of April 3, 2008 Board Meeting. d. Adopt Resolution 2008-045 authorizing execution of a quitclaim deed to Ayala Delgushan, District Project 1573, and authorize staff to record documents with the Contra Costa County Recorder. e. Adopt Resolution 2008-046 authorizing execution of a quitclaim deed to the San Francisco Bay Area Rapid Transit District (BART), Job 1554, and authorize staff to record documents with the Contra Costa County Recorder. f. Adopt Resolution 2008-047 establishing June 5, 2008 as the date for a public hearing to consider the establishment of Monteira Alhambra Valley Assessment District (AVAD) No. 2007-4, pursuant to California Constitution Article XIIID, Section 4, and Streets and Highways Code Sections 5898.20 and 5898.24. g. Establish June 5, 2008 as the date for public hearings regarding Fiscal Year 2008-2009 Operations and Maintenance Budget, Debt Service Fund Budget, and Self-Insurance Fund Budget and establishment of the Fiscal Year 2008-2009 Sewer Service Charge Rates, and collection of current Sewer Service Charges and prior year delinquent Charges by placing them on the Contra Costa County tax roll. h. Establish June 19, 2008 as the date for a public hearing to consider collection of the Fiscal Year 2008-09 Capacity Use Charges, the Fiscal Year 2008-09 Assessment for Contractual Assessment Districts, and the Fiscal Year 2007-08 delinquent Capacity Use Charges and Contractual Assessment District assessments by placing them on the Contra Costa County tax roll. i. Accept the contract work for the Piping Renovations and Replacement, Phase 3, District Project 7234, constructed by NCCI, Inc., and authorize the filing of the Notice of Completion. Book 57 - Page 166 Board Minutes of May 1, 2008 j. Authorize the General Manager to execute agreements with Harris and Associates in the amount of $350,000 and with Valley Engineering Group in the amount of $250,000 to provide relief construction inspection services for the 2008-09 construction of Capital Improvement Projects. k. Authorize medical leave of absence without pay through May 18, 2008 for John Censoplano, Network Coordinator. 5. HEARINGS a. CONDUCT A PUBLIC HEARING AND CONSIDER ADOPTION OF AN ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES APPLICABLE TO PROPERTIES WHICH COULD CONNECT TO THE ALHAMBRA VALLEY TRUNK SEWER, DISTRICT PROJECT 5919 General Manager James Kelly stated that the District is establishing reimbursement fees for the Alhambra Valley Trunk Sewer project so connections can begin and the District can recover its costs. Staff has developed proposed reimbursement fees for both direct connectors and indirect connectors to the trunk sewer. Before considering approval of the proposed fees, the Board needs to conduct a public hearing to receive comments or protests about these fees to comply with Proposition 218. Environmental Services Division Manager Curt Swanson described the trunk sewer project costs, stating that a developer contribution of $400,000 and a National Park Service deposit of $100,000 will be deducted from the cost, leaving a total of $3,525,000 to be recovered. Indirect reimbursement fees connector share is $2,190,865, with 300 potential properties. The fee is $7,303 per RUE. Direct reimbursement fees for properties that can connect directly to the trunk sewer are $1,334,135. There are 65 potential properties, and the fee is $20,525 per RUE. The public hearing was opened Matthew Parkinen addressed the Board complaining that paving on Wanda Way does not meet the required three inches of thickness. He also stated that the District has not paid him for the purchase of an easement on his property. President Lucey and Member Nejedly directed staff to work with Mr. Parkinen and assured him that the paving, if substandard, will be corrected. The public hearing was closed. Book 57 - Page 167 Board Minutes of May 1, 2008 It was moved by Member Menesini and seconded by Member Hockett to adopt Ordinance 251 (uncodified) to establish Reimbursement Fees applicable to properties which could connect to the Alhambra Valley Trunk Sewer, District Project 5919. Motion passed by unanimous vote of the Board. b. CONDUCT A PUBLIC HEARING REGARDING THE ESTABLISHMENT OF THE GORDON/MILLTHWAIT ALHAMBRA VALLEY ASSESSMENT DISTRICT (AVAD) NO. 2007-2, DISTRICT PROJECT NO. 6142 General Manager James Kelly stated that this public hearing deals with the approval of the first Alhambra Valley Assessment District, which will serve residents living on Gordon Way, Millican Court, Millthwait Drive, and a short portion of Alhambra Valley Road. The proposed assessment district, or AVAD, will finance construction of an 8-inch public sewer from the recently-completed Alhambra Valley Trunk Sewer Project. Curt Swanson, Environmental Services Division Manager and Engineer of Work for the assessment district, stated that the Gordon/Millthwait AVAD meets the AVAD criteria and will potentially serve 45 properties. It consists of 3,300 feet of 8-inch sewer. The sewer main cost estimate is $550,904, and the cost per property is $26,766, which includes the $7,303 trunk sewer indirect reimbursement fee. This would amount to an annual payment of $2,731. Mr. Swanson reported that he received 24 votes in support of the AVAD, 5 votes opposing the AVAD, and 16 property owners did not submit a ballot. The public hearing was opened and closed without comments. It was moved by President Lucey and seconded by Member Hockett to take the following actions: (1) Find that the project is categorically exempt from CEQA (2) Adopt Resolution 2008-048 overruling protests (3) Adopt Resolution 2008-049 confirming compliance with California Constitution, Article XIIID, Section 4; (4) Adopt Resolution 2008-050 approving the Engineer’s Report and assessment ordering improvement (5) Authorize the General Manager to execute an agreement with parcel owners. Motion passed by unanimous vote of the Board. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. The Board took a recess at 2:35 p.m. and reconvened at 2:40 p.m. Book 57 - Page 168 Board Minutes of May 1, 2008 7. BIDS AND AWARDS a. CONSIDER BID PROTEST BY WILLIAM MCCULLOUGH CO.; AWARD CONTRACT TO MCNAMARA & SMALLMAN CONSTRUCTION, INC., AS THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $1,704,806 FOR THE CONSTRUCTION OF WALNUT CREEK SEWER RENOVATION, PHASE 6, DISTRICT PROJECT NO. 5972; AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS; AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $8,695,000 TO THE COLLECTION SYSTEM PROGRAM OF THE FY 2007-08 CAPITAL IMPROVEMENT BUDGET General Manager James Kelly stated that, on April 21, 2008, the District received ten bids for the construction of the sixth phase of sewer renovations in the City of Walnut Creek. Phase 6 work consists of renovating 9,800 feet of 6-and 8-inch sewer lines. A timely bid protest was received from William G. McCullough Company on April 22, 2008 claiming that the lowest bidder, McNamara and Smallman Construction, Inc., was non- responsive and their bid was incomplete on the grounds that it failed to list a paving subcontractor. Staff and legal counsel have reviewed the protest and the response from McNamara and Smallman Construction and recommends rejecting the bid protest and awarding the construction contract to McNamara and Smallman Construction, Inc. for the amount of $1,704,806. This recommendation was conveyed to all parties involved. A second issue covered in the position paper is a supplemental authorization of funds from the Sewer Construction Fund to the FY 2007/08 Collection System Program. As presented at the April 10, 2008 Capital Budget Workshop, the understatement of the project carryover allocation (approx. $5 million for 2007/08 Budget for the Collection System Program) in the Capital Improvement Budget (CIB) results in fewer dollars available for allocation to new projects. Staff proposes to address this issue by updating the carryover projections in the CIB with the actual carryover in August of each year, thus adjusting the total amount authorized by the Board for the Fiscal Year to reflect the actual carryover. The $8,695,000 requested in the position paper provides sufficient funds for all remaining Collection System Program projects in FY 2007/08. Staff recommends authorizing the supplemental authorization of funds. It was moved by Member Nejedly and seconded by Member Menesini to reject the bid protest and awarded the contract to McNamara & Smallman Construction, Inc., as the lowest responsive bidder in the amount of $1,704,806 for the construction of Walnut Creek Sewer Renovation, Phase 6, District Project No. 5972; to authorize the General Manager to execute the contract documents, and to approve a supplemental authorization of $8,695,000 to the Collection System Program of the FY 2007-08 Capital Improvement Budget. Motion passed by unanimous vote of the Board. Book 57 - Page 169 Board Minutes of May 1, 2008 b. AWARD A CONTRACT TO D. W. NICHOLSON, CORPORATION, AS THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $526,500 (BASE BID AND ADDITIVE), FOR THE CONSTRUCTION OF THE DAFT POLYMER SYSTEM IMPROVEMENTS, DISTRICT PROJECT NO. 7258, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS General Manager James Kelly stated that the Solids Handling Facilities Plan identified the need to upgrade the polymer addition system for the dissolved air flotation thickeners so that the units perform adequately under present and future peak loading conditions. This project will install modifications to convert the existing dry polymer system to a permanent liquid polymer addition system to feed polymer to the dissolved air flotation thickeners. Seven bids were received from contractors. The engineer’s estimate was $540,000. The bids ranged from $419,700 to $564,000. An additive bid schedule was included to obtain costs for the installation of a fourth polymer metering pump and its variable frequency drive and a second polymer mixing unit. The bid prices for the additional work ranged from $81,450 to $115,400. Because of the favorable bids received, staff recommends awarding a $526,500 contract for both the base bid work and the additive bid item work to D. W. Nicholson Corporation the lowest responsive bidder. It was moved by Member Hockett and seconded by Member Menesini to award the contract to D. W. Nicholson, Corporation, as the lowest responsive bidder in the amount of $526,500 (base bid and additive), for the construction of the DAFT Polymer System Improvements, District Project No. 7258, and to authorize the General Manager to execute the contract documents. District Counsel Kent Alm confirmed that the project is categorically exempt from CEQA. Motion passed by unanimous vote of the Board. c. AWARD A CONTRACT TO C. OVERAA & COMPANY AS THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $3,693,000 FOR THE CONSTRUCTION OF STANDBY POWER FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT NO. 7248, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS; AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENTS WITH MWH NOT TO EXCEED $150,000 AND WITH ATI NOT TO EXCEED $75,000 FOR CONSTRUCTION SUPPORT SERVICES This item was deferred to a future meeting at the request of staff. 8. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. AWARD A CONTRACT TO MELLONI CONSTRUCTION, INC., IN THE AMOUNT OF $433,231, AS THE LOWEST RESPONSIVE BIDDER, FOR THE CONSTRUCTION OF CONTROL ROOM MODIFICATIONS, DISTRICT PROJECT NO. 7253, AND AUTHORIZE THE GENERAL MANGER TO EXECUTE THE CONTRACT DOCUMENTS Book 57 - Page 170 Board Minutes of May 1, 2008 General Manager James Kelly reported that, on March 27, 2008, four sealed bids were opened for the construction of the Control Rooms Modifications Project, District Project 7253. As discussed at the April 17, 2008 Board Meeting, the apparent first and second low bidders filed cross bid protests on April 2, 2008 and April 3, 2008. On April 16, 2008, the second low bidder, N. E. Carlson Construction, Inc., withdrew its bid protest. Staff has conducted a technical and commercial review of the apparent low bid of $433,231 submitted by Melloni Construction, Inc. and concluded that, although the bid has certain technical deficiencies, none of them is deemed a material defect. Staff recommends that the Board waive the non-material deficiencies and award the project to Melloni Construction, Inc. as the lowest responsive bidder. It was moved by Member Menesini and seconded by Member Nejedly to award the contract to Melloni Construction, Inc., in the amount of $433,231, for the construction of Control Room Modifications, District Project No. 7253, and to authorize the General Manager to execute the contract documents. Motion passed by unanimous vote of the Board. 9. REPORTS a. General Manager 1) Consider Local Agency Formation Commission (LAFCO) request for Central Contra Costa Sanitary District (CCCSD) to fund California Environmental Quality Act (CEQA) costs associated with considering expansion of CCCSD Sphere of Influence to match the County Urban Limit Line General Manager James Kelly stated that Contra Costa LAFCO wants to know if the District is interested in having its Sphere of Influence (SOI) expanded in several locations to coincide with the Urban Limit Line. The SOI expansions would require some level of CEQA review which LAFCO would want the District to fund. A staff memo on this subject is included in the Board agenda packet. Customarily, the District does not proactively seek expansion of its SOI; rather, waits for property owners/developers to come to the District with requests to expand the SOI in combination with an annexation request. He recommended that the District leave the process as it currently stands. 2) General Manager James Kelly announced that the District took part in several Earth Day-related activities over the course of the past two weeks. The largest event was the Earth Day Festival at the John Muir Historic site in Martinez. More than 1,400 people attended the event. Communication Services staff set up Household Hazardous Waste Collection Facility exhibits and answered questions. As in previous years, one of the most popular activities at the festival was the Polaroid photos taken by Book 57 - Page 171 Board Minutes of May 1, 2008 Maintenance Crew Leader Don Turk and his daughter Ashley. The photos consist of children and families wearing hardhats and orange vests while holding picks and shovels on a stage replicating a District work site. Household Hazardous Waste staff Jesse Folks and Winston Ingram also hosted an exhibit at the City of Lafayette’s Earth Day on April 20, 2008. 3) General Manager James Kelly announced that the Collection System Operations Department needs specialized assistance with sewer maintenance work including manhole rehabilitation, crown spraying, smoke testing, trenchless spot repairs, and cleaning. A Request for Proposals (RFP) for a sewer service contract will be advertised on May 2, 2008 and May 8, 2008. The proposals will be opened on May 19, 2008. 4) General Manager James Kelly announced that the District will host a public meeting for the Lafayette Sewer Renovation Phase 5 project, DP 5977, on Tuesday, May 13, 2008 from 7:00 p.m. to 8:00 p.m. at the Lafayette Community Center’s Manzanita Room. This is the fifth phase of sewer renovations in Lafayette. Approximately 12,000 linear feet of 6-and 8-inch sewer lines will be replaced in various locations in the City of Lafayette. The project will go out for bid in mid-May with the Bid Opening scheduled for early June. 5) General Manager James Kelly announced that ABC-TV News/Channel 7 came to the Household Hazardous Waste Center on Wednesday, April 30, 2008, for a story on the disposal of CFLs. Reporter Jennifer Olney, who has done other stories about the HHW Facility, interviewed Household Hazardous Waste Technician Loren Staggs, and Communication Services Manager Michael Scahill about CFLs and the District’s role in removing them from the environment. 6) General Manager James Kelly announced that it was reported previously that District staff would be presenting the Camino Pablo Trunk Sewer Improvement Project at the May 6, 2008 Orinda City Council Meeting. District staff was informed that the agenda for that meeting is substantial, so the District’s presentation has been moved to the May 20, 2008 meeting. The public information workshop will still take place on Thursday, May 1, 2008 from 7 p.m. to 8 p.m. at the Wagner Ranch School Library in Orinda. 7) General Manager James Kelly announced that there will be an Ad hoc Committee Meeting, by invitation only, regarding the Alhambra Valley Annexation on Friday, May 2, 2008 at 3:30 p.m. at Martinez City Hall located at 525 Henrietta Street. Martinez Council Members Lara Delaney and Mike Menesini comprise the committee. Other invitees include Local Agency Formation Commission (LAFCO) Executive Director Lou Ann Book 57 - Page 172 Board Minutes of May 1, 2008 Texeira, Martinez Assistant City Manager/Community Development Director Karen Majors, three owners of properties outside the Urban Limit Line (Andronis, Rolandelli & Hein), and District Engineering Assistant III Russ Leavitt. At least two of the homeowners were informed by the County that they could not receive water service from the City of Martinez even though they have pre-annexation agreements with Martinez. The purpose of the meeting is to come up with some ideas to rectify this situation and to clean up the oversight in the Urban Limit Line (ULL) and annexation of the properties to Martinez. Environmental Services Manager Curt Swanson will also be in attendance. Board Member Mario Menesini plans to attend. 8) General Manager James Kelly announced that the Town of Moraga will host the Mayors’ Conference on Thursday, May 1, 2008 at Hacienda de Las Flores. Assemblyman Mark DeSaulnier is the featured speaker. Board Member Mike McGill and General Manager Jim Kelly will attend. 9) General Manager James Kelly announced that, as previously reported, the Mt. View Sanitary District (MVSD) will hold a public open house on th Saturday, May 17, 2008 to commemorate their 85 anniversary along with other milestone events. The event is scheduled from 10 a.m. to 2 p.m. Since parking is limited, parking will be provided at 1635 Pacheco Boulevard with shuttle buses transporting attendees inside the plant gate. Announcements 2-9 were provided as written announcements. b. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT No reports. d. BOARD MEMBERS 1) Member McGill reported on the April 28, 2008 Budget and Finance Committee meeting and summarized the Action Summary. He stated that the Committee reviewed the Board travel and conference approval process and how it should be handled. He stated that the Committee recommends Board conferences be listed in the budget for the year, and that Board Members announce their conference attendance prior to going. Also, the Committee recommends announcing other business meetings in advance when possible to achieve the utmost transparency. Book 57 - Page 173 Board Minutes of May 1, 2008 President Lucy suggested that all conferences and meetings be placed on the Consent Calendar for approval so the public may know in advance what travel is proposed. Member Nejedly noted that sometimes a decision is made to attend a meeting when it is not possible to get advanced approval. District Counsel Kent Alm stated that AB 1234 requires prior approval for meetings if compensation is to be paid and the meeting is not already approved. This applies to meetings where Board Members receive compensation and may relate to meeting expenses. Mr. Alm stated that he will research this. General Manager James Kelly stated that staff will come back to the Board with a position paper. 2) Member Menesini reported on the April 21, 2008 Contra Costa Special Districts Association meeting. He announced that David Piepho was re- elected to serve as the CCSDA representative on LAFCO. 3) President Lucey reported on the April 22, 2008 Outreach Committee meeting and summarized the Action Summary. There were no comments from Board Members. 4) Member Nejedly reported on the April 29, 2008 Real Estate Committee meeting and summarized the Action Summary. There were no comments from Board Members. 5) President Lucey reported on the April 30, 2008 Human Resources Committee meeting and summarized the Action Summary. There were no comments from Board Members. 6) President Lucey and Members Hockett and McGill reported on their attendance at the April 23-26, 2008 California Association of Sanitation Districts (CASA) Conference. 7) Member Hockett reported on the April 23 and 25, 2008 California Association of Sanitation Districts (CASA) Executive Board meetings. 8) Reports on miscellaneous business meetings attended by Board Members. Member Menesini reported on his attendance at a recent Friends of the Estuary meeting with former General Manager Charles Batts, and on his recent tour of the A-Line project. Book 57 - Page 174 Board Minutes of May 1, 2008 Member McGill reported on his attendance at the California Water Environment Association (CWEA) Conference, California Special Districts Association (CSDA) training, and the April 21 Contra Costa Special Districts Association (CCSDA) meeting. He announced that he will be attending another session of CSDA training in the near future and will be attending the Mayors’ Conference meeting immediately following today’s Board Meeting. 9) Announcements Member Menesini announced the upcoming Environmental Alliance meeting to be held on Monday, May 19, 2008. 10. BUDGET AND FINANCE a. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE FUND AND APPROVE THE ALLOCATION OF $850,000 TO THE SELF- INSURANCE FUND FROM THE FISCAL YEAR 2008-2009 OPERATIONS AND MAINTENANCE BUDGET General Manager James Kelly reported that the Self-Insurance Fund (SIF) is reviewed each year by the Board of Directors. The position paper provides the Board with a detailed financial overview of the fund. The Budget and Finance Committee reviewed this position paper at its April 14, 2008 meeting and recommends approval by the Board. The Board will approve the budget at the June 5, 2008 public hearing and adopt it by resolution at the June 19, 2008 meeting. Director of Administration Randy Musgraves presented a report, and stated that there are five key points: (1) For this fiscal year, 2007-08, staff budgeted for the Operations and Maintenance fund to allocate $800,000 to Self Insurance Fund. In addition, the Board agreed to transfer an additional $800,000 for the Kaiser claim. Staff will move whatever is not paid to Kaiser into reserves to build up the reserve level. (2) In the 2008-09 proposal the Board is asked to allocate $850,000 from the General Fund. (3) There is nothing significantly different being proposed this year. Claims are budgeted at $250,000. (4) Premiums for insurance coverage have stabilized and are expected to increase 0-5%. The District pays approximately $500,000 a year in insurance premiums. (5) Staff is trying to get reserve levels back up to their level of six years ago. Reserve levels dropped considerably when insurance premiums jumped drastically. Mr. Musgraves went over graphs showing the history of SIF revenue, expense and reserve balances; history of loss payment and insurance premiums; and SIF reserves by sub-fund, and explained how reserve requirements are met. Book 57 - Page 175 Board Minutes of May 1, 2008 It was moved by Member Menesini and seconded by Member Hockett to approve the allocation of $850,000 to the Self-Insurance Fund from the FY 2008-2009 Operations and Maintenance Budget. Motion passed by unanimous vote of the Board. b. AUTHORIZE STAFF TO TAKE ACTIONS IN CONNECTION WITH ESTABLISHING A GASB 45 IRREVOCABLE TRUST, WHICH WILL BE BROUGHT BACK FOR ACTION BY THE BOARD. RECOMMENDED BY BUDGET AND FINANCE COMMITTEE General Manager James Kelly stated that the Board is being asked to authorize staff to proceed with the following actions to establish a GASB 45 Trust with PARS. (1) Develop GASB 45 trust documents to establish an irrevocable trust with Public Agency Retirement Services (PARS) to fund annual GASB 45 contributions; (2) Prepare an agreement with PARS; (3) Prepare a financial plan authorizing: ?? the deposit of $6 million previously set aside for FY 2006-07 and 2007-08; ?? the approval of a deposit in the amount of $5.2 million for FY 2008-09; ?? the Budget and Finance Committee to provide quarterly review with staff and an annual report to the Board. The Board is also being asked to authorize the Budget and Finance Committee to develop an investment policy which would be brought back to the full Board for consideration. The Board previously authorized earmarking $6 million dollars to be set aside for post- retirement benefit costs, and staff is recommending the deposit of the $6 million into the trust. Finally, staff is asking for approval to deposit an additional $5.2 million into the trust for the 2008-2009 fiscal year. The Budget and Finance Committee has reviewed the recommendations in detail and concurs. Member McGill, Chair of the Budget and Finance Committee, stated that the Committee has reviewed the proposal and supports the recommendation to proceed. President Lucey said he would agree to the recommendation despite having initially opposed the proposal. He stated that he is putting his trust in the Budget and Finance Committee’s recommendation. It was moved by Member Nejedly and seconded by Member Hockett to authorize staff to proceed with actions as recommended, to be brought back for Board action at a future meeting. Motion passed by unanimous vote of the Board. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. Book 57 - Page 176 Board Minutes of May 1,2008 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 13. CLOSED SESSION The Board recessed at 3:31 p.m. to reconvene in the Caucus Room in Closed Session regarding the following matters: a. Conference with Legal Counsel - Anticipated Litigation - significant exposure to litigation pursuant to Government Code Section 54956.9 - two potential matters. b. Conference with Legal Counsel - Anticipated Litigation - initiation of litigation pursuant to 54956.9(c) - one potential case. The Board recessed at 3:55 p.m. to reconvene in open session in the Board Room. 14. REPORT OUT OF CLOSED SESSION District Counsel Kent Aim reported that the Board voted unanimously in closed session to authorize settlement of the Kaiser claim, subject to receipt of supporting documentation, and to authorize execution of a settlement agreement. 15. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at 3:56 p.m. Gerald R. Lucey President of the Board of Di ectors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: c;QF?::o~ Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 57 - Page 177