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HomeMy WebLinkAboutBOARD MINUTES 05-19-05 I I I 225 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 19, 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 19, 2005. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Menesini, Nejedly, Hockett ABSENT: Members: Lucey a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Following an introduction from the supervisor, Board Members welcomed Raffi Moughamian, newly-hired Staff Engineer. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS Following a report by Director of Administration Randy Musgraves, Board Members commended Assistant Engineer Nathan Hodges for receiving the "Safety Suggestion of the Year" Award for 2004 for his suggestion to install railing or use fall protection devices near areas of the Solids Conditioning Building where personnel access the roof. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly that the Consent Calendar, consisting of Items a. through c., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. Motion passed by unanimous vote of the Board, with Member Lucey absent. a. Accepted public sewer improvements and offers of dedication for Job 5515 - Parcels 1, 2, 3, 4, 5, Job 5715 - Parcel 2, and in the Alamo area and authorized staff to record the resolutions with the Contra Costa County Recorder. Resolutions Nos. 2005-032. 2005-033. 2005-034. 2005-035. 2005-036 and 2005- 037 adopted. b. Extension of medical leave of absence without pay authorized for Mark Lafferty, Maintenance Technician III, Mechanical, through June 16, 2005. c. Established June 2, 2005 as the date for a public hearing to declare District land surplus and to authorize staff to execute lease agreements. 5-19-05 226 5. HEARINGS a. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.20.300 SCHEDULE OF REIMBURSEMENT FEES. TO ESTABLISH REIMBURSEMENT FEES TO APPLICABLE PROPERTIES WHICH COULD CONNECT TO DISTRICT PROJECT 5497. 5667. OR 5698 General Manager Charles Batts stated that reimbursement accounts are established for private installers of public sewers to be repaid for extending the public sewer as additional connections are made to the line. Three sewer project installers have requested that Reimbursement Accounts be established for their sewer projects and have submitted information documenting the costs of these projects. District staff has reviewed the information and is satisfied that it accurately documents the actual costs of the projects. On April 7, the Board set May 19 as the date to conduct a public hearing to consider reimbursement fees for these three projects. Associate Engineer Michael Penny presented a report, describing the particulars of the projects. He stated that Project 5497 on EI Toyonal and Camino Del Cielo in Orinda is approximately 690 feet of 8 inch sewer at a project cost of $124,000. There are six potential connections to the project. He described Project 5667 on Del Amigo Road in Danville, which consists of 170 feet of 8 inch sewer at a total cost of $64,000. There are two potential connections to the line. The third project, Project 5698 on EI Pintado Road in Danville, consists of 570 ft of 8 inch sewer at a cost of $111,000, with four potential connections. The public hearing was opened and closed without comments. It was moved by Member Boneysteele and seconded by Member Menesini to adopt Ordinance No. 236 as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. b. CONDUCT A PUBLIC HEARING ON THE DRAFT CAPITAL IMPROVEMENT ~OR 2005-06 AND THE DRAFT 2005 TEN-YEAR CAPITAL IMPROVEMENT PLAN CIP APPROVE THE 2005 CIP AND APPROVE THE CIB FOR INCLUSION IN THE 2005-06 DISTRICT BUDGET General Manager Charles Batts stated that the public hearing is to allow for public input on the fiscal year 2005-06 Capital Improvement Budget and the 2005 Capital Improvement Plan. The details of the budget and plan were discussed in a publicly- noticed workshop on April 14, 2005. Director of Engineering Ann Farrell presented a summary of the information previously provided to the Board in the CIB/CIP workshop. She described the historical capital program activity and expenditure recommendations for fiscal year 2005-06. She stated that the District is expecting to spend approximately $27 million in the current fiscal year, with projected revenues approximately the same. As a result, the sewer construction fund balance will not be drawn down. Next year's revenues will be less than expenditures because of the loss of ad valorem tax, so there will be deficit spending and a need to draw down the Sewer Construction Fund in fiscal year 2005- 2006. She described award of contracts scheduled for the Collection System and Treatment Plant projects. With regard to the Recycled Water Program, she stated that a small amount has been budgeted for any new connections that may be of benefit. The major projects in the General Improvements category are the Headquarters Office Building HV AC and roof improvements as well as the continuing study of Collection System Operations facility improvements. The public hearing was opened and closed without comments. 5-19-05 I I I I I I 227 It was moved by Member Boneysteele and seconded by Member Nejedly to approve the 2005-06 Capital Improvement Budget and the 2005 Capital Improvement Plan as recommended, to be included in the 2005-06 District Budget. Motion passed by unanimous vote of the Board, with Member Lucey absent. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 10, Collection System, was taken out of order to accommodate City of San Ramon staff in the audience. 10. COLLECTION SYSTEM a. AUTHORIZE THE GENERAL MANAGER TO WAIVE THE RIGHT TO A HEARING AND AGREE TO MAKE PAYMENT OR UNDERTAKE A SUPPLEMENTAL ENVIRONMENTAL PROJECT SEP FOR ADMINISTRATIVE CIVIL LIABILITY UNDER THE WATER CODE SECTIONS 13323 AND 13385 General Manager Charles Batts stated that the Board was advised of the Administrative Civil Liability fine for District overflows at the last Board meeting. He introduced Jim Kelly, Director of Operations, who presented a report. Mr. Kelly stated that the District has been assessed a fine of $165,000 for 28 sewer system overflows, totaling 274,000 gallons, 97,000 of which were unrecovered. He described recent Administrative Civil Liability fines in nearby areas from 2003: a 1,000- gallon overflow in 2001 in the City of Pacifica, which received a fine of $125,000; a $7,000 fine assessed against Diablo Foreign, an auto repair shop, for failure to submit an annual storm water report; a $227,225 fine assessed against San Francisco International Airport for the discharge of partially-treated wastewater; a $38,000 fine assessed against Sonoma County Water Agency for the discharge of 400,000 gallons of partially-treated wastewater; a fine of $35,180 assessed against North San Mateo Sanitation District for an uncertified laboratory; and a $118,000 fine against the City of San Francisco for a two-day sanitary sewer overflow of 99,000 gallons. He stated that, in July 2004, Lake County Sanitation District was fined $300,000 for 35 discharges, totaling 1,200,000 gallons; and in January 2005 Lake Berryessa Resort Improvement District was fined $400,000 for 5 sanitary sewer overflows to surface water totaling up to 1,000,000 gallons. He described the options available to the Board, which are: to contest the Administrative Civil Liability; waive the right to a hearing and pay full liability of $165,000; or to waive the right to a hearing, pay the staff cost of $10,000 and have a Supplemental Environmental Project(s) (SEP) prepared in the amount of $155,000. He stated that any SEP must be approved by the Regional Water Board and must benefit watersheds in the District's service area and benefit, if possible, the areas where the overflows occurred. He stated that feasibility discussions have been held with the Water Board, the County, and The Watershed Project staff. He concluded that staff's recommendation is to waive the right to a hearing, pay the staff cost of $10,000, and develop an SEP that benefits the District's service area watersheds. It is anticipated that this would take 2-3 months. Staff explained how the $10,000 of staff time was calculated. Mr. Kelly stated the Water Board has specific SEP criteria that must be met, but indicated that, if the Board has an interest in a particular project, the Water Board will often work with staff as long as the project meets its guidelines. Mr. Kelly was asked if the Regional Board staff had suggested a project. Mr. Kelly stated that the Regional Board staff had suggested a project study taking creek water (urban runoff) into the District treatment plant and treating it, thereby reducing pollutants entering the Bay from creeks. He stated that staff does not recommend consideration of that project. Member Nejedly stated that he supports spending the money on an environmental project that would benefit the San Ramon community. He stated that he does not want 5-19-05 228 staff to spend a lot of time on development of the project, and supported an expeditious resolution of the matter. Member Menesini stated that, since the fine included spills in areas other than San Ramon, his preference is to look at what is best for all the communities affected, and perhaps entertain proposals from those communities. He stated that, since the largest spill was in San Ramon, he was not opposed to the majority of the fine being spent in that community. Mr. Kelly stated that staff has spoken with The Watershed Project, an organization that manages a grant program for the Regional Water Board. The Board may wish to consider utilizing their services. Such an organization may invite applications from communities, have the applications in within three months, and have the projects done within a year. President Hockett stated that she supports consideration of a project from San Ramon, and that there may not be sufficient funds to consider other projects. Herb Moniz, City Manager, City of San Ramon, addressed the Board. He stated that San Ramon has approximately $2 million of unfunded creek restoration needs and maintenance liabilities. He asked the Board to support one or both of the two projects proposed by his City: the rehabilitation and maintenance of an area immediately north of the Larwin Pumping Station, at a cost of up to $80,000; or rehabilitation and creekbed maintenance at the Larwin Pumping Station at a cost of up to $60,000. Joye Fukuda, City Engineer, City of San Ramon, described the two projects in greater detail. Member Boneysteele stated that he inspected the area immediately following the spill, stating that he noted no visible effects. He asked Ms. Fukuda to describe the impact of the spill on San Ramon residents. General Manager Batts stated that staff would be willing to meet with City of San Ramon staff and the Regional Board to define what the SEPs may be. He stated that whichever project is chosen, it has to meet the requirements of the Regional Board. He stated that possible projects will be brought back to the Board at a later date. Member Nejedly suggested using $80,000 of the funds for City of San Ramon project and utilizing the balance of the funds elsewhere. It was moved by President Hockett and seconded by Member Menesini to authorize the General Manager to waive the right to a hearing, to pay the Water Board staff cost of $10,000, and to direct staff to develop a $155,000 SEP. Motion passed by unanimous vote of the Board, with Member Lucey absent. Members Menesini and Nejedly suggested that options for an SEP be presented to the Outreach Committee for consideration. 7. BIDS AND AWARDS a. CONSIDER GRANTING REQUEST FOR BID RELIEF TO MCNAMARA AND SMALLMAN CONSTRUCTION. INC. AND AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO K.J. WOODS CONSTRUCTION. INC.. FOR THE SOUTH ORINDA SEWER IMPROVEMENTS PROJECT. PHASE 2. DISTRICT PROJECT 5558 General Manager Charles Batts stated that the South Orinda Sewer Improvements Phase 2 project is a continuation of the Phase 1 project completed on Moraga Way in 1999. A major portion of the Phase 2 project is to replace approximately 6,000 feet of 8 to 12 inch diameter sewers on Glorietta Boulevard from Orchard Road to Meadow View Road using open cut construction. The low bidder, McNamara & Smallman Construction, has requested relief of its bid due to a clerical error. 5-19-05 I I I I I I 229 Bob Smallman, President of McNamara & Smallman, explained the clerical error on his bid where a figure was inadvertently omitted. He stated that this would significantly affect his company's ability to perform, and requested that the Board grant relief from the bid. Associate Engineer Alex Rozul presented a report, showing the analysis of the bid results. He stated that staff recommends granting the request for relief of bid due to the clerical error made in the shoring section of the bid. Following discussion, it was moved by Member Menesini and seconded by Member Nejedly to grant the request by McNamara & Smallman for relief of their bid due to a clerical error, and to award the contract to K. J. Woods Construction, Inc. as the lowest responsible bidder in the amount of $1 ,808,000. Motion passed by unanimous vote of the Board, with Member Lucey absent. 8. REPORTS a. GENERAL MANAGER 1) General Manager Charles Batts stated that energy prices have been increasing over the last two years, and the District has benefited from having long-term contracts. Natural gas prices recently dropped somewhat and staff purchased an additional 58 percent of the District's natural gas need for fiscal year 2005-2006. The District has now purchased 73 percent of projected natural gas needs for fiscal year 2005-2006. Staff is continuing to monitor the natural gas market for future buying opportunities. Craig Mizutani, Associate Engineer in the Plant Operations Division, presented an update on energy costs and recent natural gas purchases. He stated that the District currently uses 420,000 decatherms per year, or 1,150 per day. The District pre-purchases 1,000 decatherms per day, and purchases the balance at the end of the month at spot market price. Currently the District has pre-purchased 73 per cent of gas needs for the next fiscal year. He stated that natural gas prices have remained high, at $7.60 per day, but added that, even at higher gas prices, cogeneration savings are approximately $0.5 million per year. 2) General Manager Charles Batts stated that recycled water rates will be increasing 3% on July 1, in accordance with the Recycled Water ordinance adopted by the Board. He stated that this is an automatic annual increase that was built into the ordinance, so no Board action is needed at this time to implement the rate increase. The new rates will be: Customers previously on canal water: $387/acre foot (previously $376/AF) Customers previously on potable water: $819/acre foot (previously $795/AF) He stated that the rates are set at about 80% of competing Contra Costa Water District rates. Letters will go out to customers by the end of May announcing the increase and the new rates. 3) General Manager Charles Batts announced that the County moved into its new Animal Services facility over the weekend. An open house is planned for Sunday, June 19 from 11 :00 a.m. to 2:00 p.m. 5-19-05 230 4) General Manager Charles Batts announced the advertisement of the Household Hazardous Waste Collection Facility (HHWCF) Paint Bulking Room Improvements Project, DP 8209. He stated that the HHWCF serves an increasing number of households and is handling increasing quantities of latex paint. This project will replace the existing latex paint bulking equipment with a machine capable of bulking 5-gallon and smaller containers, and will make other modifications to increase the efficiency and safety of the bulking room. Staff intends to advertise for bids for the project, and the project should start the end of July, and should be finished I by the first week of December. The Engineer's estimate is $110,000. 5) General Manager Charles Batts announced the advertisement of District Projects for the Potholing Blanket Contract, the Locating Blanket Contract, and the TV Inspection Blanket Contract. He stated that the contracts are: . Underground locating services, Engineer's Estimate - $100,000 . Non-destructive potholing of underground utilities, Engineer's Estimate - $200,000 . Television inspection of sanitary sewers, Engineer's Estimate - $200,000 These service contracts will be for a three-year duration, and support the District's in-house Capital projects pipe design group. 6) General Manager Charles Batts announced the advertisement of the North Clarifier Paving Project, DP 6153. He stated that, in the mid-1990's, the treatment plant site was surveyed for.improvements of the asphalt paving. In 1998, the north parking lot was re-paved, and in 1999 the second paving replacement project made repairs to roadways around the I primary facilities. He stated that the project will address two additional areas: (1) failed roadways around the aeration and nitrification tanks and around the north clarifiers; and (2) unpaved areas around and adjacent to the north clarifiers. Project work is scheduled to begin in August and be completed by October 31. The Engineer's estimate is $120,000. 7) General Manager Charles Batts announced that, on June 6, 2005, Plant Operations Manager Doug Craig will be attending a Water Environment Research Foundation (WERF) committee meeting at Washington State University in Pullman, Washington. He stated that Mr. Craig is a member of an oversight committee for research on a new disinfection method. The research is being conducted at Washington State University under a grant from WERF, and WERF is paying for the trip. 8) General Manager Charles Batts stated that the District conducted a mobile household hazardous waste collection event in San Ramon on Saturday, May 14. The collection event was for household hazardous waste only and was held at the City of San Ramon Service Center on Crow Canyon Road. Around 373 customers dropped off wastes. He stated that I Engineering Department employees Dave Wyatt and Curt Swanson were on site throughout the entire day, and High School students from California High School in San Ramon and City of San Ramon staff volunteered to greet customers. Citizen volunteers with the San Ramon Police Department directed traffic. b. COUNSEL FOR THE DISTRICT None. 5-19-05 I I I 231 c. SECRETARY OF THE DISTRICT None. d. BOARD OF DIRECTORS 1) President Hockett, member of the Budget and Finance Committee, reported that she reviewed the expenditures and took no exception. Motion was made by President Hockett and seconded by Member Nejedly to approve the Expenditure List dated May 19, 2005, including Self Insurance Check Nos. 102217 to 102225, Running Expense Check Nos. 155432 to 155649, Sewer Construction Fund Check Nos. 27630 to 27656, Payroll Fund Manual Check Nos. 49038 to 49039 and Payroll Regular Check Nos. 55410 to 55436 as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. 2) Member Nejedly, Chair of the Personnel Committee, reported that the Committee met on May 12, 2005. He stated that, at that meeting, Director of Operations Jim Kelly announced that Operations Division Manager John Pearl will be retiring in September. The Committee concurred with staff's request to use an executive recruitment firm to conduct a recruitment for the position. Member Nejedly reported that Human Resources Manager Cathryn Freitas stated that the District has received a decision on the Potter arbitration which supports the 5-day suspension, and stated that the matter was on the Board agenda for that night. Member Nejedly stated that the Committee agreed to the over filling of an Operator1/2/3 position from the existing list. He stated that the Committee concluded its meeting with a closed session to discuss labor negotiations, pursuant to Government Code Section 54957.6: District Negotiators: Human Resources Manager Cathryn Freitas and Director of Administration Randy Musgraves; Employee Organization: Management supporUConfidential Group (MS/CG). 3) Member Menesini reported on a recent Environmental Alliance meeting regarding coal mining in the area, and announced upcoming Environmental Alliance meetings on global warming and the genome program. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AMENDMENTS TO AGREEMENT WITH NO. 28572D AND AGREEMENT NO. 29840D WITH ARCSINE ENGINEERING FOR ADDITIONAL PROFESSIONAL SERVICES IN CONNECTION WITH THE LOWER ORINDA PUMPING STATION RENOVATION PROJECT. DISTRICT PROJECT NO. 5448. General Manager Charles Batts stated that staff is requesting that the Board authorize two contract amendments with ArcSine Engineering. The first contract is for support in the electrical/instrumentation area during project construction at the Lower Orinda Pumping Station, and the second is for performing programming to integrate the Lower Orinda Pumping Station in to the new Pumping Station SCADA system. Bill Brennan, Capital Projects Division Manager, stated that, with regard to the first amendment, issues with PG&E, the electrical subcontractor and the control panel manufacturer have required more work than originally anticipated from ArcSine. The amendment to the second agreement is necessary due to increased scope which provides additional redundancy for the pumping station control system. 5-19-05 232 He stated that the amendment to Agreement No. 28572D is $62,000, which will increase the agreement to $200,000. The amendment to Agreement No. 29840D is $25,000, which will bring the agreement up to $55,000. It was moved by Member Menesini and seconded by President Hockett to authorize the General Manager to execute the amendments to the agreements as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. b. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO AN EXISTING PROFESSIONAL SERVICES AGREEMENT WITH ATI ARCHITECTS AND ENGINEERS IN THE AMOUNT OF $63.000 TO PROVtQ!; PROFESSIONAL ENGINEERING SERVICES FOR THE DESIGN OF THE CHEMICAL FEED BUILDING RENOVATION PROJECT. DISTRICT PROJECT NO. 7226 I General Manager Charles Batts stated that an inspection of the Chemical Feed Building and the diversion channel under the building in July 2004 resulted in the discovery that part of the building is no longer structurally sound. The proposed project will address that issue. A TI Architects and Engineers did the preliminary design work on the project and they have acquired extensive working knowledge of the Chemical Feed Building. Staff has negotiated a professional engineering service agreement with A TI for the design of the project, for a price not to exceed $63,000. Staff recommends retaining A TI to design this project. It was moved by Member Menesini and seconded by Member Nejedly to authorize the General Manager to execute an amendment to the agreement as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. 11. HUMAN RESOURCES a. DENY APPEAL AND ADOPT THE ARBITRATOR'S RECOMMENDATION IN THE DISCIPLINARY MATTER OF SOURCE CONTROL SUPERINTENDENT TIM POTTER I General Manager Charles Batts reported that Source Control Superintendent Tim Potter filed a Step 4 appeal of a proposed 5-day suspension. The Board directed staff to secure the services of an arbitrator, Franklin Silver. Mr. Silver heard the case, read arguments, found for the District, and is recommending that the Board uphold the suspension and deny the appeal. It was moved by Member Nejedly and seconded by Member Menesini to adopt the recommendation of the arbitrator and deny the appeal of Tim Potter. Motion passed by unanimous vote of the Board, with Member Lucey absent. a. 12. REAL PROPERTY ADOPT A RESOLUTION ACCEPTING A GRANT OF EASEMENT FROM WILLOWS CENTER CONCORD. LLC. FOR THE A-LINE RELIEF INTERCEPTOR PROJECT. DP NO. 8156. General Manager Charles Batts stated that the A-Line Relief Interceptor Pre-Design Project, completed in 2000, determined the required alignment for the future A-Line Relief Interceptor. A portion of this alignment lies within the Willows Shopping Center adjacent to the Walnut Creek channel. In conjunction with renegotiating the lease with the Willows Shopping Center for use of District property, District staff negotiated the purchase of the required easements for the future A-Line. I Associate Engineer Michael Penny gave a presentation on the A-Line Easement Acquisition Project, including issues regarding the Southern Pacific Right-of-Way. He described the location of the A-line alignment, stating that in 1995 a portion of the A-line was built from the Treatment Plant to the Buchanan Fields Golf Course. Construction of the remaining portion is scheduled 2015-2025. Future acquisitions include easements 5-19-05 I I I 233 in Buchanan Field Golf Course, and along the Walnut Creek channel. The project moves into the Southern Pacific right-of-way, and there are issues that were identified regarding the need for additional right-of-way. In 1985 the original negotiations for the Southern Pacific right-of-way took place, but at that time locations of existing and future District sewers were approximate. The intent of the easement purchase agreement from the County was that changes could be made to the easement descriptions in the future to accommodate the actual alignment of District sewers. Many modifications need to be made. He stated that it is staff's desire to clean up right-of-way issues to address current and future easement needs, and described various locations where the easements need to be adjusted. He stated that staff has been working with the County to address the issues, and the goal is to have all the easement adjustments completed by June 2006. It was moved by Member Menesini and seconded by Member Nejedly to adopt Resolution No. 2005-038, accepting the easement as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. b. ADOPT RESOLUTION DECLARING ONE-ACRE PARCEL IN THE TOWN OF DANVILLE AS SURPLUS DISTRICT LAND AND AUTHORIZE BOARD PRESIDENT AND SECRETARY TO EXECUTE THE SALE OF THE PROPERTY TO THE TOWN OF DANVILLE. General Manager Charles Batts stated that the District accepted an offer of $600,000 from the Town of Danville to purchase the District's one-acre parcel in Danville. The property is located within the Town Service Center maintenance yard. There is restricted access and the property is not necessary for the exercise of the District's power, duties, and functions. The sale of this property is exempt from CEQA. The agreement has been prepared and an escrow account has been established. Staff anticipates the District receiving payment of $600,000 for the property around the first of June. He stated that staff is requesting the Board to approve a resolution declaring the one- acre parcel in Danville surplus property and authorizing the Board President and Secretary to execute the sale of the property to the Town of Danville. It was moved by Member Nejedly and seconded by Member Menesini to adopt Resolution No. 2005-039, declaring the land surplus and authorizing sale of property as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. 13. APPROVAL OF MINUTES a. MINUTES OF APRIL 21. 2005 Motion was made by President Hockett and seconded by Member Boneysteele to approve the minutes as recommended. Motion passed by unanimous vote of the Board, with Member Lucey absent. 14. BUDGET AND FINANCE General Manager Charles Batts stated that the fiscal year 2005-2006 Operations & Maintenance Budget and the Debt Service Fund Budget are being submitted today for review and guidance prior to a public hearing and approval of the proposed budgets scheduled for the June 2 Board meeting. Controller Debbie Ratcliff presented the proposed budgets. She described revenue assumptions, stating that the sewer service charge will remain unchanged at $280. To cover the O&M budget, the allocation to O&M will be increased from $204 to $234. The sewer construction amount will be reduced from $76 to $45, which will create deficit spending in the capital budget. $1 will be allocated to the debt service fund. Also, $3.7 million has been budgeted in property tax revenue, which will go directly to the debt service fund. 5-19-05 234 She described the expense assumptions, stating that retirement expenses will go up go up by 5.8%, and health care costs will increase 3.4%-7.5%. She showed actual figures for 2003-04, projected actuals for 2004-05, and the projected budget for 2005-06. She stated that total revenues are projected to grow to $47.8 million in 2005-06 and expenses are anticipated to grow to $47.189 million. Comparing budget to budget, she stated that revenues are expected to increase by 13.5% over the prior year, primarily due to the allocation of the sewer service charge and increased income from the City of Concord. She stated that the Increase in expenses is caused by several factors, including increases in salaries and wages, filling of positions, and increases in retirement and medical costs. She showed increases, budget to budget, for major categories. Utilities will go up 21 %, repairs and maintenance 6%, professional and legal by 29% due to work on the District Code revisions and the standardizing of contracts and agreements. She stated that the budget will increase about 7.5% in total, or $3.3 million. With regard to the debt service fund for next year, revenues of $3.9 million are anticipated, with debt service of approximately $3.9 million. 15. EMERGENCY SITUATIONS REQUIRING BOARD ACTION: None. 16. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 17. CLOSED SESSION At 3:48 p.m. President Hockett convened a closed session regarding the following matters: a. INITIATION OF LITIGATION Closed session to confer with Legal Counsel on initiation of litigation pursuant to Subdivision (c) 54956.9 of the Government Code - one potential matter. b. LABOR NEGOTIATIONS Closed session to discuss labor negotiations pursuant to Government Code Section 54957.6: District Negotiators: Human Resources Manager Cathryn Freitas and Director of Administration Randy Musgraves; Employee Organization: Management Support Confidential Group (MS/CG). At 4:20 p.m. President Hockett concluded the closed session and reconvened in open session. 18. REPORT OF DISCUSSIONS IN CLOSED SESSION None. 5-19-05 I I I I I I 235 19. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 4:20 p.m. to reconvene on Tuesday, May 24, 2005, for a Capital Projects Committee/Board Workshop to be held in the Collection System Operations Conference Room at 1250 Springbrook Road, Walnut Creek, California. ðk~ 'if ~"ó3 President of the Board' of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: ~~ Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California 5-19-05