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HomeMy WebLinkAboutBOARD MINUTES 05-05-05 214 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 5, 2005 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 Thursday, May 5, 2005. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Lucey, Nejedly, Hockett ABSENT: Members: Menesini a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Following introductions from Supervisors, Board Members commended Jennifer Muir on her recent appointment as Plant Operator Trainee, and welcomed Jesse Lucia, newly hired Plant Operator III, and Marie Pettersen, newly hired Secretary III. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Nejedly that the Consent Calendar, consisting of Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Public sewer improvements and offer of dedication accepted from John Wai Ying Yee and Maymie Ng Yee for an easement shown on the recorded final map of Subdivision MS 856-97 in the Town of Danville (Job 5439), and staff authorized to record the resolution with the Contra Costa County Recorder. Resolution No. 2005-029 adopted. Motion approved by the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini b. Public sewer improvements and offer of dedication accepted from Mark A. Scott and Grant A. Cody for easements shown on the recorded final map of Subdivision MS 853-99 in the Town of Danville (Job 5698) and staff authorized to record the resolution with the Contra Costa County Recorder. Resolution No. 2005-030 adopted. Motion approved by the following vote: 5-05-05 I I I I I I 215 AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini c. Public sewer improvements and an offer of dedication accepted from Shapell Industries, Inc. for easements shown on the recorded final map of Subdivision No. 8690 in the San Ramon area (Job 5735) and staff authorized to record the resolution with the Contra Costa County Recorder. Resolution No. 2005-031 adopted. Motion approved by the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini d. Contract work for the Recycled Water Customer Connections Contract, Bid Request No. 018826, accepted and filing of the Notice of Completion authorized. Motion approved by the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini e. Public hearings set for June 2, 2005, to receive public comment on the 2005- 2006 Operations and Maintenance Budget and the Self-Insurance Fund Budget and on the collection of current sewer service charges and prior year delinquent charges by placing them on the County tax roll. Motion approved by the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini . 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. a. 5. BIDS AND AWARDS AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY FOR THE CONSTRUCTION OF THE TREATMENT PLANT PROTECTIVE COATINGS AND PIPING RENOVATIONS, PHASE 3. DISTRICT PROJECT 7233 General Manager Charles Batts stated that this is the third phase of a project to apply protective coatings to treatment plant equipment, piping and surfaces to extend the useful life and minimize corrosion. The Phase 1 and Phase 2 projects identified and rehabilitated structures, vessels, piping and equipment throughout the plant with deteriorating conditions and in need of surface rehabilitation. 5-05-05 216 Phase 3 of the project will complete the protective coating work on the last two clarifiers and aeration piping at the aeration/nitrification tanks. In addition, the project contains the application of protective coatings to Substations 33, 34, 40, 52, 73 and 81; completion of pressure grouting of the expansion and construction joints on the aeration/nitrification tanks; replacement of the 3" and 4" boiler blow down pipelines in the Solids Conditioning Building (SCB); and miscellaneous piping renovations in the SCB, the Dissolved Air Flotation area and the Pump and Blower building. In addition, he stated that construction joints and expansion joints in the aeration/nitrification tanks will be sealed with polyurethane grout. Bids were received on April 19, 2005 for this project and a Notice to Proceed will be issued in late May. I Motion was made by President Hockett and seconded by Member Nejedly to award the contract to Kaweah Construction Company as recommended in the amount of $1,348,000. Motion passed by the following voted of the Board: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini b. CONSIDER RESPONSIVENESS OF BID SUBMITTED BY AEI CONSULTANTS AND CONSIDER AUTHORIZING AWARD OF CONSTRUCTION CONTRACT FOR THE COLLECTION SYSTEM OPERATIONS DEPARTMENT (CSOQ} UNDERGROUND STORAGE TANK REMOVAL. DISTRICT PROJECT NO. 8212 General Manager Charles Batts stated that on April 19, 2005 staff opened bids for the Collection System Operations Division Underground Storage Tank Removal Project. The apparent low bidder, AEI Consultants, had two irregularities with their bid: no bid bond was included with their bid, and their submittal was also not in compliance with California Labor Code with respect to worker safety, specifically sheeting and shoring. He stated that staff considers these irregularities material, and informed AEI Consultants that staff would recommend to the Board to declare their bid as non- responsive. AEI Consultants has protested staff's position, he said. I Principal Engineer Tad Pilecki presented a report, stating that four bids were received for the project. The low bidder, AEI consultants, bid in the amount of $119,120. He said that a review of the bid revealed two irregularities: no bid bond was attached, and there was an issue of non-compliance with Labor Code Section 6707. He stated that staff considers the irregularities to be material defects, and recommended rejection of the bid as non-responsive. He stated that the District's bid documents clearly state that no bid will be considered unless accompanied by a bid bond or cashier's check. The second irregularity relates to the Labor Code, which requires that there be a bid item regarding worker safety and shoring. AEI wrote "N/A" in that section of the bid documents, which does not comply with the Labor Code. The hearing was opened. Greg Griffin, AEI Business Development Representative, addressed the Board, stating that, in his opinion, the bid bond is not critical and does not guarantee performance. With regard to the Labor Code irregularity, he stated that this company was not going to enter the hole, so that shoring would not be necessary. He explained that the bond was inadvertently omitted during assembly of the bid documents. I In response to questions from Boardmembers, Mr. Griffin and his associate described the scope of the project and method of excavation and tank removal. Mr. Griffin concurred that, if his crew needed to enter the hole, shoring would in fact be necessary. 5-05-05 I I I 217 District Counsel Kent Aim explained the significance of the bid bond, particularly with regard to its assurance to the District that the bidding company will not back out. He stressed the importance of the bid bond being submitted with the bid, rather than later. He added that, historically, the District has found bids submitted without bid bonds to be non-responsive. Principal Engineer Tad Pilecki stated that the hole will be approximately 12 feet deep, and is required to be lined with overlapping filter fabric, which is clearly stated in the specifications. Also, for District staff to inspect the installation, entry into the hole is necessary. In response to a question from Member Lucey, District Counsel Kent Aim affirmed that, to his recollection, the District has never made an exception for bids unaccompanied by bid bonds. Bob Corsin, representing Paradiso Mechanical, the second low bidder on the project, addressed the Board and reiterated that the purpose of bid bonds is to bind the contractor to his bid. He stated that inserting "not applicable" on the sheeting and shoring item is inappropriate, as contractors do not know whether shoring will be required until excavation begins. He stated that, if the amount for sheeting and shoring were removed from his company's bid, the amount would be $20,000 less than that of AEI Engineering. Following questions from Member Boneysteele, staff confirmed that inspectors will be on the site and have the authority to require shoring if they feel it necessary. District Counsel Kent Aim also responded that, if the District accepts a bid where the bidder indicates sheeting and shoring is not applicable, if shoring is subsequently deemed necessary there may be disagreement about who is financially responsible. Principal Engineer Tad Pilecki concluded his presentation, stating that staff recommends that the Board declare the bid from AEI non-responsive and award the contract to Paradiso Mechanical as the lowest responsive bidder in the amount of $123,686. Mr. Greg Griffin and Mr. Dusty Roy rebutted comments made by staff and spoke in support of their bid. The hearing was closed. Following comments by Board Members, motion was made by Member Lucey and seconded by Member Nejedly to declare the bid from AEI non-responsive and to award the contract to Paradiso Mechanical as the lowest responsive bidder in the amount of $123,686. Motion passed by unanimous vote of the Board, with Member Menesini absent. 6. REPORTS a. GENERAL MANAGER 1) General Manager Charles Batts introduced a report on the Treatment Plant Piping Renovations Project, DP 7208. He stated that, during the construction of the treatment plant in the mid-70's, numerous piping systems were installed. These pipes have been in service for over thirty years and many have reached their useful life. Phase 1 of this project renovated or replaced various piping systems including service air lines, water lines, process piping, among others. Phase 2 renovated or replaced deficient portions of pipe on the centrifuge feed pumps, sludge grinders, effluent pumps, and other areas. The project work was substantially complete on February 3 and the work was accepted at the Board meeting on March 3, 2005. 5-05-05 218 Associate Engineer Gary Rathunde presented a report, stating that there were five construction activities for Phase 2 of the project: replacement of 42-inch discharge pipes; replacement of centrate pipelines; replacement of valves at centrifuge feed pumps and at sludge grinders; and replacement of seal water stations at DAF area and West Gallery. He described the purpose of the project, which was to replace corroded piping and corroded or inoperable valves. He showed photographs and described construction work at the project sites. The total authorized budget on the project was $1,197,000, and the estimated total project cost was $1,100,000. He stated that the program costs to date are $3.6 million, which includes Phases 1 and 2. He stated that it is anticipated that, over the next ten years, the expenditures will reach $4-5 million. He stated that staff will identify components for upcoming projects, prioritize piping systems and continue to assess plant piping. I 2) General Manager Charles Batts announced the advertisement of Treatment Plant Safety Enhancements Project, Phase 2, DP 7229, on May 11 and May 16. He stated that work will begin by July 1 and should be completed by the end of the calendar year. This project is part of a program of upgrading the safety of Treatment Plant facilities. This project will incorporate a number of safety-related work orders into one capital project in order to gain some economies of scale. The work will include handrail repair and installation, grating replacement, fall protection equipment, and chemical storage tank replacement. The Engineer's estimate is $400,000. 3) General Manager Charles Batts announced the advertisement of North Orinda Sewer Renovations Project, Phase 1, DP 5759. He stated that the North Orinda Sewer Renovation Phase 1 Project is the first of a three- phase program targeted at rehabilitating sewers in North Orinda. The District-wide TV inspection program recently completed in the Orinda area identified many of the sewer segments that will be addressed. The Phase 1 project will rehabilitate 11,000 feet of sewer at 18 different sites. Many of these are located on private property. The project will be advertised on May 12 and 17, with the bid opening scheduled for June 3. A public workshop has been scheduled for May 23 at 7:00 p.m. in the Orinda Public Library Garden Room. The Engineer's estimate for this project is $2.1 million. I 4) General Manager Charles Batts announced the outcome of April 26, 2005 sewering meeting with residents of the EI Toyonal area of Orinda. He stated that, on Tuesday, April 26th, the City of Orinda and the District hosted a meeting for property owners in the EI Toyonal area on extending public sewers to the neighborhood. The Board may remember that this was a requested meeting based on a legal action taken by a resident against the city. Twenty-six people attended the meeting including City Council Member Laura Abrams, Assistant City Attorney An Nguyen, City staff, County Environmental Health Director Ken Stuart, four District staff (Ann Farrell, Curt Swanson, Jarred Miyamoto-Mills and Russ Leavitt) and 18 property owners. I Discussion of sewering issues was spirited, but generally positive, with lots of pertinent questions. After the meeting a number of property owners volunteered to lead the neighborhood sewering process. In addition, calls were received from three property owners who were unable to attend the meeting, two of whom are interested in sewer service. 5-05-05 I I I 219 5) General Manager Charles Batts reported on a meeting with Contra Costa County regarding the Southern Pacific right-of-way easement relocations. He stated that the District participated in the purchase of the Southern Pacific right-of-way with Contra Costa County in 1985. This right-of-way contains the backbone of the District's collection system and is also needed for the future A-line. At the time of purchase, the location of existing and future facilities was not accurately described, with the understanding that future detailed legal descriptions would be developed and adjustments would be made as needed. Since that purchase, other major improvements, such as the Ygnacio Valley pedestrian crossing, impacted the future right-of-way needs of the District. In 2002, when the District installed the San Ramon Force Main, it was discovered that a concrete bike path had been constructed over the right-of-way. When this was brought to the County's attention, they would not agree to the favorable language from the original easement agreement in the adjusted right-of-way. Because the settlement agreement with San Ramon dictated the construction schedule for the force main, staff was forced to acquiesce to the less favorable language. However, this necessitated staff to research this issue and present it to senior County staff. District staff has been working closely with County staff over the last year to address this issue. At a meeting on April 20, staff received concurrence from senior County staff on a process that will allow us to make the needed corrections and retain the original favorable easement language. Staff will now be working on developing the detailed legal descriptions for the over 50 SP right-of-way parcels where easement modification will be needed. This effort will be done over the next year. Staff wanted the Board to appreciate the cooperation they have received from County staff on this important issue over the last several months. 6) General Manager Charles Batts announced the relocation of the Contra Costa County Animal Shelter and Open House to be held on June 13, 2005 from 11 a.m. to 2 p.m. Communication Services Manager Harriette Heibel will be meeting with Animal Services staff on May 10 to discuss the District's role in the Open House. This is the first facility in the county to use recycled water to wash down the kennel area. The District Board and staff is invited to participate in this event. 7) General Manager Charles Batts announced that five District staff from various departments will attend the annual HTE Users' Group conference in Las Vegas on June 5 through June 10, 2005. Recent changes in the HTE software, and the addition of new software applications make this conference especially valuable. The employees will coordinate sessions attendance, as to bring back information of interest to other employees in their work areas. Funds to cover the cost of attendance were included in the Technical Training and Conference budgets of Admin and Engineering Departments. 8) General Manager Charles Batts announced an overflow from a manhole at 15 Queensbrook Place in Orinda on April 30, 2005. He stated that CSO crews responded to a call from a homeowner at 15 Queensbrook Place off Hall Drive in Orinda on Saturday, April 30. The homeowner discovered an overflow from a manhole in an easement while cutting weeds in his lower yard. The manhole is at the top of a steep slope that runs down into a tributary to Moraga Creek. The slope is eroded, probably due to a combination of the overflow and winter rains. The overflow was due to debris in the line. The manhole and area has been cleaned up and the creek flushed Sunday. Staff did a good job of capturing whatever flow was in the creek 5-05-05 220 b. c. None. d. at that time. The line was TV'd and a downstream repair initiated to correct the problem. There was no property damage and the homeowner seems satisfied with District efforts so far. He stated that estimating the volume of the overflow is difficult - approximately 1500 gallons. He stated that reports have been made to all regulatory agencies. 9) General Manager Charles Batts stated that staff intends to advertise, starting May 13, for proposals to fill the Kiewit property. The Board directed staff to determine the feasibility and financial benefit of filling the property. An RFP has been identified as the appropriate method of obtaining this information. The Real Estate Committee has recommended moving forward at this time with the RFP and the project. The responses will be discussed with the Real Estate Committee and will come back to the Board for review and approval of a contract. COUNSEL FOR THE DISTRICT 1) District Counsel Kent Aim reported that the item scheduled for closed session at the conclusion of this meeting should be cancelled and rescheduled for the Board meeting of May 19, 2005, due to the recent receipt of a settlement offer. 2) District Counsel Kent Aim stated that the District has received a copy of the administrative civil liability complaint filed by the Regional Board with regard to District sewer system overflows. He stated that the amount of the fine is $165,000. He stated that the District must decide whether to: (1) object to the fine and attend a hearing; (2) accept the fine and waive the right to a hearing; or (3) accept the fine, waive the right to a hearing and proceed with a Supplemental Environmental Project (SEP), with the exception of $10,000 of the fine. He stated that any fine paid, unless used for an SEP, would go to the State. He reported that staff's and his recommendation is to accept the fine, waive the right to a hearing, and proceed with an SEP. He stated that, if the Board wishes to protest the fee and attend a hearing, the matter should be added to the agenda as an urgency item as there would be insufficient time to prepare for a hearing if the matter was scheduled for the May 19 agenda. District Counsel added that, if the Board does not wish to protest the fine, then the matter could be agendized for the next Board meeting. Member Boneysteele stated that he would prefer that the money be paid as a fine and retained by the State. Member Nejedly stated that, in his opinion, the fine was excessive. He requested information regarding recent spills in Grass Valley and San Luis Obispo, and historical information on District spills and fines. SECRETARY OF THE DISTRICT BOARD OF DIRECTORS 1) Member Lucey, Chair of the Budget and Finance Committee, reported that he and President Hockett reviewed the expenditures and took no exception. Member Lucey reported that staff interviewed three actuarial firms to perform the study required by the Government Accounting Standards Board (GASB) to report the cost of post-employment benefits. He stated 5-05-05 I I I I I I 221 that staff selected Aon to perform the study at a maximum cost of $17,500. He concluded that the Committee supports staff's decision. Motion was made by Member Lucey and seconded by President Hockett to approve the Expenditure List dated May 5, 2005, including Running Expense Check Nos. 155260 to 155431, and Sewer Construction Fund Check Nos. 27598 to 27629 as recommended. Motion passed by unanimous vote of the Board, with Member Menesini absent. 2) Member Lucey reported on the California Association of Sanitation Agencies (CASA) Conference of April 27-30, 2005. He stated that former Senator John Nejedly spoke, in commemoration of the 50th Anniversary of the organization. 3) Member Lucey, Chair of the Real Estate Committee, reported that the Committee meeting scheduled for May 3, 2005 was cancelled. 4) General Manager Charles Batts stated that Member Menesini is recovering from eye surgery and unable to leave his house. Mr. Batts announced the upcoming Environmental Alliance meeting on May 16 regarding coal mining in Contra Costa County. The lecture will be given by the Parks Service person in charge of the Black Diamond mines. 7. ENGINEERING a. ACCEPT THE CONTRACT WORK FOR THE PUMPING STATIONS SUPERVISORY CONTROL AND DATA ACQUISITION PROJECT. DISTRICT PROJECT 6127. AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION General Manager Charles Batts stated that a position paper is before the Board to accept the contract work for the District's Pumping Station Supervisory Control and Data Acquisition, or SCADA, Project. Capital Projects Division Manager Bill Brennan provided a brief presentation reviewing the project. He stated that the District has 20 pumping stations, 18 of which receive monitoring and alarms provided by SCADA. The system provides control at 7 larger pumping stations, and will include Lower Orinda when the project is completed. This means that that equipment can be monitored, started and stopped from a remote location by computer. He stated that alarms generated by the monitoring program are sent to the treatment plant control room; the pager of the on-call pumping station operator; the cell phone of the operator, supervisor and superintendent; and any pumping station operator who is logged onto the system via computer. He stated that the project budget is $3,430,000 and the expenses to date are $3,316,110. The project is expected to be completed under budget. The Board concurred with staff's recommendation to accept the contract work for the Pumping Stations Supervisory Control and Data Acquisition Project, District Project 6127, and to authorize the filing of the Notice of Completion. General Manager Batts stated that at this time the additional oversight and 24-hour staffing at the San Ramon Pumping Station will be discontinued. b. ADOPT A RESOLUTION AUTHORIZING THE GENERAL MANAGER TO EXECUTE JOINT POWERS AGREEMENTS WITH CITIES. COUNTIES. SPECIAL DISTRICTS. AND OTHER GOVERNMENT ENTITIES NOT TO EXC~ED $50.000 General Manager Charles Batts stated that staff recommends the matter be continued to June 2, 2005 to allow for the attendance of all Board Members. Member Menesini had previously requested additional information on the item. 5-05-05 222 8. CORRESPONDENCE a. RECEIVE LETTER DATED APRIL 13.2005 FROM PROPERTY OWNERS ON SMITH ROAD IN ALAMO REQUESTING THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT FOR THEIR PROPERTIES TO CONNECT TO THE DISTRICT General Manager Charles Batts stated that the District recently received a letter from a group of 4 homeowners along Smith Road in Alamo requesting to form a Contractual Assessment District (CAD) Program to fund a proposed project to extend the public sewer to serve their neighborhood. All of the 4 existing homes are currently served by septic tanks. I In June 2003 the District discontinued the CAD Program. Unless otherwise directed by the Board, staff will prepare a response to the Smith Road homeowners advising them that the District has discontinued the CAD Program and that they will have to obtain private financing to extend the sewer system. Staff will continue to work with these homeowners as they attempt to extend the public sewer to their neighborhood. The Board concurred with staff's recommendation to prepare a response stating that the Contractual Assessment District program is not in effect at this time. 9. APPROVAL OF MINUTES a. MINUTES OF APRIL 7.2005 MINUTES OF APRIL 14.2005 b. Motion was made by Member Lucey and seconded by Member Nejedly to approve the minutes as recommended. Motion passed by unanimous vote of the Board, with Member Menesini absent. 10. BUDGET AND FINANCE I a. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE FUND AND APPROVE THE ALLOCATION OF 250000 TO THE FUND FROM THE 2005-2006 OPERATIONS AND MAINTENANCE BUDGET General Manager Charles Batts stated that staff reviews the District's insurance coverage and Self Insurance Fund annually as part of the budget review process. Director of Administration Randy Musgraves presented a report, stating that the Board is being asked to receive the proposed budget and approve the allocation to the Self - Insurance Fund. He summarized the fund balances, stating that an actuarial study is performed every two years to meet GASB requirements. The actuary has recommended that the reserves in the Self-Insurance Fund be increased from the current $437,000 to $881,500, reflecting what is happening in the industry and at the District. He described the three sub-funds and reserves. He stated that the General Fund Operations and Maintenance contribution will have to be increased to provide for the increased reserves, and added that in 2011-12 the current $250,000 contribution will have to be increased to $900,000 to maintain a $1 million for GASB 10 in Sub-fund A, and a $2 million reserve in Sub-fund B for employment-related and pollution-related risks. I He summarized insurance coverages, including Excess Liability, Employment Practices Liability, Pollution Liability, Property, and Worker's Compensation coverage. He stated that premiums increased rapidly over the past three years in all areas, but increases have now stabilized. Motion was made by Member Nejedly and seconded by Member Lucey to approve the allocation of $250,000 from the 2005-06 Operations and Maintenance Budget to the 5-05-05 223 Self-Insurance Fund. Motion passed by unanimous vote of the Board, with Member Menesini absent. b. RECEIVE MARCH 2005 FINANCIAL STATEMENT Director of Administration Randy Musgraves presented a report, stating that for the month of March, 2005 the O&M expenditures were at $3.595 million of a budget of $3.588 million, for a variance of $7,000. Year-to-date actual expenditures are a little over $30 million, with the budget at $32 million. Year-to-date actual O&M revenues are at $19.5 million, with $18.796 budgeted. He itemized year-to-date favorable variances, amounting to approximately $2 million. Year-to-date sewer construction revenue is $18 million, with expenses of $20 million. He provided information regarding temporary investments held in the LAIF account, commercial paper and US Treasury Bills. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION: None. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 13. CLOSED SESSION INITIATION OF LITIGATION a. The closed session to confer with Legal Counsel on initiation of litigation pursuant to Subdivision (c) 54956.9 of the Government Code - one potential matter - was cancelled and rescheduled for May 19, 2005. COUNSEL FOR THE DISTRICT - REPORT FROM ORINDA MORAGA DISPOSAL SERVICE RECEIVER STEPHEN ANDERSON r(\ Ih ,qqlø -q7 ~ District Counsel Kent Aim stated that in 1088 87 the District sued Doug Lomow and Robert Slipka and the Orinda-Moraga Disposal Service over alleged fraudulent activities that resulted in loss of money to the District of unpaid franchise fees and other fees the District had to pay to the County. The District attempted unsuccessfully to obtain a Receiver to take over the company and to protect the remaining assets at that time. Stephen Anderson was appointed as Receiver at a later date to bring in whatever assets remained, and has worked on that assignment over the past 5-6 years. He stated that the Receivership is now to be closed. The judgment indicates that next $2 million collected (the District has already received back out- of-pocket money and attorney and consultant fees) has to be returned to ratepayers of Orinda and Moraga rather than going into a general fund. Mr. Aim stated that, if the Board wishes to make a recommendation on how the funds should be disbursed, it should so indicate to Mr. Anderson and that recommendation will be passed on to the court. Stephen Anderson, Receiver, addressed the Board and presented a report. He stated that he was appointed Receiver in 1997 for the purpose of a post-judgment receivership. He described in detail the history of the fraudulent activities, his receivership duties, and his efforts and activities in locating and obtaining remaining assets, which took him to Idaho, Oregon and Canada. He stated that all reclaimed land and equipment has been sold and all cases closed, except the original case which will be concluded at 9 a.m. on June 9 in Martinez. He stated that, at that time, approximately $470,000 will be available for distribution, which is the amount remaining after payment of all expenses. Mr. Anderson requested direction from the Board on how the funds should be disbursed. He suggested that the money be returned to the citizens of Orinda, Moraga and Lafayette through the solid waste billing process. Mr. Aim stated that such a rebate would amount to approximately $40 per customer. 5-05-05 224 Member Nejedly stated that he does not support utilizing the Solid Waste Authority to disburse the funds. He stated that the funds should be returned to the portion of the District that lost the money, and that recipients should be informed on how the District obtained the funds. He suggested that a letter to the people of that section of the District would be appropriate. Mr. Aim stated that, when Mr. Anderson goes to court next month, the court may decide at that time how the funds should be disbursed, and may be looking for direction from the District. President Hockett suggested utilizing the Solid Waste Authority as the vehicle to disburse the funds, and that the billing process would be the appropriate mechanism. . Member Boneysteele stated that, when Mr. Lomow acquired the Orinda-Moraga Disposal Service, the price paid was extremely high, which Member Boneysteele questioned that time. President Hockett thanked District Counsel Aim and Receiver Stephen Anderson for all their efforts in bring the matter to a successful conclusion. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION None. 15. ADJOURNMENT Member Lucey requested that the meeting be adjourned in honor of Household Hazardous Waste Supervisor and cancer survivor Elaine Jacobs, in recognition of her successful completion of a 26-mile marathon to raise money for The Wellness Group. There being no further business to come before the Board, President Hockett adjourned the meeting at the hour of 4:07 p.m. COUNTERSIGNED: ~~,~~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California ~. Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California 5-05-05 ---------- ---------- ---,--_._------------ I I I