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HomeMy WebLinkAboutBOARD MINUTES 05-18-06 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 18, 2006 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 18, 2006. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Hockett, Lucey, Nejedly, Menesini ABSENT: Membern: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Board Members congratulated Rick Ginn on his personnel advancement to Maintenance Crew Leader; Dana Lawson on her promotion to Associate Engineer; and Paul Seitz on his promotion to Associate Engineer. 2. PUBLIC COMMENTS Marie Kahn, Sustainable Moraga, described her group's efforts in local battery disposal program and requested assistance in establishing a District-wide household battery collection program. Board Members suggested that she contact the Solid Waste Authority for information on how to proceed. Member Lucey offered to personally assist in transporting batteries from Moraga to the Household Hazardous Waste Facility in Martinez. 3. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Nejedly to approve the Consent Calendar, consisting of Items a. through d., to adopt resolutions, and to authorize recordings. Motion passed by unanimous vote of the Board. a. Accept the contract work for the Treatment Plant Safety Enhancements, Phase 2, District Project 7229, and authorize the filing of the Notice of Completion. b. Adopt Resolutions 2006-023 and 2006-024 authorizing execution and recording of Quitclaim Deeds to the Kent S. Harris and Patti N. Harris Trust and Gail A. Mattes (District Project 1552 - Parcels 4 and 45), and authorize staff to record documents with the Contra Costa County Recorder. c. Adopt Resolutions 2006-025 and 2006-026 authorizing execution and recording of Quitclaim Deed to the Gregory Louis Fenves and Carmel A.M. Fenves 2001 Revocable Trust, and Joseph C. Condon (District Project 1559 - Parcels 26 and 27), and authorize staff to record documents with the Contra Costa County Recorder. d. Adopt policy for hiring District retirees, authorizing the General Manager to hire retirees but requiring Board notification when one is hired, and approve Check No. 28449. Book 54 - Page 156 Board Minutes of May 18, 2006 4. HEARINGS a. CONDUCT A PUBLIC HEARING ON THE CAPITAL IMPROVEMENT BUDGET (CIB) FOR 2006-07 AND THE 2006 TEN-YEAR CAPITAL IMPROVEMENT PLAN (CIP), APPROVE THE 2006 CIP, AND APPROVE THE CIB FOR INCLUSION IN THE 2006-07 DISTRICT BUDGET General Manager Charles Batts stated that the public hearing is to receive comments on the 2006-07 Capital Improvement Budget and 2006 Capital Plan. The Board received a detailed presentation on the budget and plan at the Capital Budget Workshop on April 13, 2006. Director of Engineering Ann Farrell stated that the proposed authorization for 2006-07 is $71 million, and program expenditures are estimated to be $35 million. The Board is being asked to approve the 2006-07 Capital Improvement Budget and 2006 Capital Improvement Plan for inclusion in the 2006-07 District Budget. The public hearing was opened and closed without comments. It was moved by Member Nejedly and seconded by President Menesini to approve the 2006 CIP and to approve the CIB for inclusion in the 2006-07 District Budget. Motion passed by unanimous vote of the Board. b. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE (UNCODIFIED) TO ESTABLISH REIMBURSEMENT FEES TO APPLICABLE PROPERTIES THAT COULD CONNECT TO JOB NO. 5738 General Manager Charles Batts stated that a sewer project installer has requested that a reimbursement account be established for his sewer project and has submitted information documenting the cost of the project. District staff has reviewed the information and is satisfied that it accurately documents the actual cost. On April 20, 2006, the Board set May 18, 2006 as the date to conduct a public hearing to consider establishing a reimbursement account for the project. Associate Engineer Michael Penny stated that the project is located on South Avenue in Alamo, and the total allowable cost is $56,191.58. There are two parcels involved, and one installer. He stated that the reimbursement fee per parcel would be $28,095.79, unless one of the parcels was divided, in which case the fee would be recalculated. The public hearing was opened and closed without comments. It was moved by Member Lucey and seconded by Member Nejedly to adopt Ordinance No. 240 (Uncodified), establishing reimbursement fees to applicable to property that could directly connect to Job No. 5738. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 8.c. was taken out of order to accommodate City of Concord staff in attendance. Items 13.a and 13.c under the Closed Session section of the meeting were also taken out of order. The Board recessed at 2:35 p.m. to convene in closed session. The Board resumed the regular Board Meeting at 3:15 p.m. 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT TO ENGINEERED SOIL REPAIRS, INC.. THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $77,357 FOR THE RECONSTRUCTION OF SLOPE AT 178 HALL DRIVE. DISTRICT PROJECT NO. 5868 AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS Book 54 - Page 157 I ----L Board Minutes of May 18, 2006 General Manager Charles Batts stated that the project reconstructs slide damage at the slope at 178 Hall Drive caused by an overflow from a manhole. The repair will use an environmentally acceptable approach required by the Regional Water Quality Control Board. Three sealed bids ranging from $77,351 to $150,000 were received and publicly opened on May 9, 2006. The engineer's estimate for the construction is $75,000. He stated that staff recommends the award of a construction contract in the amount of $77,357 to Engineered Soil Repairs, the lowest responsive bidder. It was moved by Member Hockett and seconded by Member Nejedly to award a construction contract to Engineered Soil Repairs, Inc., the lowest responsive bidder in the amount of $77,357, for the Reconstruction of Slope at 178 Hall Drive, District Project No. 5868, and to authorize the General Manager to execute the contract documents. Motion passed by unanimous vote of the Board. b. AWARD A CONSTRUCTION CONTRACT TO D'ARCY & HARTY CONSTRUCTION. THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $1,077.007 FOR THE DANVILLE SEWER RENOVATIONS PROJECT. PHASE 1. DISTRICT PROJECT NO. 5758 AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS General Manager Charles Batts stated that the Danville Sewer Renovations Project, Phase 1, presented to the Board at the March 16, 2006 meeting, will renovate 4,900 linear feet of sewer lines in the Town of Danville. The project will include both open cut and pipe bursting installation. A portion of the project in the downtown area will be constructed at night to minimize impacts to the merchants. Six sealed bids were opened on May 3, 2006. The engineer's estimate for the construction is $1,300,000. It was moved by Member Hockett and seconded by Member Nejedly to award a construction contract to D'Arcy & Harty Construction as the lowest responsive bidder in the amount of $1,077,007 for the Danville Sewer Renovations Project, Phase 1, District Project No. 5758, and to authorize the General Manager to execute the contract documents. Motion passed by unanimous vote of the Board. c. AWARD A CONSTRUCTION CONTRACT TO INSITUFORM TECHNOLOGIES. INC.. THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $4.956.576 FOR THE 2006 CURED-iN-PLACE PIPE (CIPP). DISTRICT PROJECT NOS. 5956. 5957. AND 5959 AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS General Manager Charles Batts stated that, as a result of a 2001 investigation of reinforced concrete pipe, the District has undertaken a comprehensive program to rehabilitate deteriorating concrete pipe. The 2006 CIPP project will renovate approximately 21,000 linear feet of concrete pipe in several key locations within the District. On May 5, 2006 one sealed bid in the amount of $4,956,576 was received from Insituform Technologies. The engineer's estimate was $5,800,000. Staff Engineer Nate Morales described the scope of the project, stating that the project installs 21,000 square feet of 21-inch to 36-inch cured-in-place pipe. He stated that the pipe will be installed at four sites: along Waterbird Way in Martinez, at Saint Mary's College and along the Lafayette-Moraga Regional Trail, at Minert and Arkell Roads in Walnut Creek, and at Camino Pablo in Orinda. He stated that the CIPP process includes no-dig technology and utilizes corrosion-proof material. One bid was received on May 5, 2006 from Insituform Technologies, Inc., in the amount of $4,956,576. In response to questions from Board Members Hockett and Lucey, Mr. Morales stated that the goal is to not close the Moraga trail but closure may be necessary at certain points for short periods of time. If this is the case, staff will pave a path around the trail if necessary. President Menesini asked to be taken on a tour of the sites. Member Lucey requested to be kept informed of the construction schedule along the trail. It was moved by President Menesini and seconded by Member Hockett to award a construction contract to Insituform Technologies, Inc., the lowest responsive bidder in the Book 54 - Page 158 Board Minutes of May 18, 2006 amount of $4,956,576, for the 2006 Cured-In-Place Pipe (CIPP), District Project Nos. 5956, 5957, and 5959 and to authorize the General Manager to execute the contract documents. Member Nejedly stated that he would vote against the motion as he does not support awarding contracts when only one bid is received. Motion passed by the following vote of the Board: AYES: NOES: Members: Boneysteele, Hockett, Lucey, Menesini Members: Nejedly 7. REPORTS a. GENERAL MANAGER 1) General Manager Charles Batts announced that the trunk sewer in the Alhambra Valley will be constructed in two phases. Phase 1 will install 930 feet of 12-inch sewer from Gilbert Lane to Strentzel Lane and 2,390 feet of 10- inch sewer in Alhambra Valley Road from Wanda Way to Reliez Valley Road. Included with the work will be laterals and sewer main stubouts for future connections by property owners and neighborhood groups. The new sewers in Phase 1 will be installed using the traditional open-cut method. This project will be advertised on May 26 and May 31,2006. The construction cost is currently estimated at $1,460,000. More information will be presented when the Board is asked to approve the construction contract on July 6, 2006. He added that residents of the Alhambra Valley continue to express interest in a District-sponsored program to aid in financing extensions of public sewers from the Alhambra Valley Trunk Sewer. At the June 1, 2006 Board meeting, staff will present a report to the Board about possible financing alternatives for those who wish to connect to the public sewer. 2) General Manager Batts announced that Associate Engineer Alexandr Mestetsky will attend a training seminar on construction claims on June 7 and 8, 2006 in Las Vegas, Nevada. Attendance at this training was included in the 2005-06 budget. 3) General Manager Batts announced that the District will be sending four staff members to the HTE Users Group Conference in Orlando Florida on June 4 through 9, 2006. Staff will attend sessions on purchasing and inventory management systems, procurement card tracking, building permits and land parcel management, online customer services such as permit applications, document management systems, and others. There are also several sessions on the new HTE Customer Information System, which replaces the old sewer service charge billing system. This conference was included in the 2005-06 budget. 4) General Manager Batts announced that CSO staff traveled to Hammond, Indiana to inspect the new sewer rodding truck that was included in the District's 2005-06 Equipment Budget. The vendor, Weco Industries, as a contract provision, paid for this coordination trip. There will be some incidental expenses such as local mileage and parking which will be paid by the District. This trip will allow staff to clarify the District's requirements and the specifications, and this should help to avoid delays or problems in the delivery of the equipment. Delivery of the completed truck is expected by the end of June 2006. 5) General Manager Batts stated that staff has met with a prospective tenant for the Kiewit property and signed a lease for livestock grazing on a month-to- month basis effective June 1, 2006. This lease will provide rental income of $200 per month and would eliminate the cost of removing weeds on the property to meet fire safety requirements. Book 54 - Page 159 -L Board Minutes of May 18, 2006 The lease would be secondary to County Quarry's lease for a clean fill operation on the same property. County Quarry is in the process of obtaining a grading permit from the County and the grazing lease would not interfere with their lease. The tenant with the livestock is aware of the lease with County Quarry and could vacate within ten days. 6) General Manager Batts stated that, on Tuesday, May 16, 2006 Source Control Superintendent Tim Potter and Director of Engineering Ann Farrell staffed a booth and attended the Contra Costa Dental Society meeting to make information available on the proposed mandatory amalgam separator program. In preparation for the meeting a "Frequently Asked Questions" handout was developed based on questions posed by the dental community. The overall reception was positive with key people in the Dental Society indicating their understanding of the need for amalgam separators and their desire to work with the District to get the message out in a positive way. b. COUNSEL FOR THE DISTRICT None. c. SECRETARY OF THE DISTRICT None. d. BOARD OF DIRECTORS 1) Member Hockett, Chair of the Budget and Finance Committee, reported that the Committee reviewed the Expenditures and recommends approval. It was moved by Member Hockett and seconded by Member Boneysteele to approve the Expenditure List dated May 18, 2006, including Self Insurance Check Nos. 102319 to 102324, Running Expense Check Nos. 160647 to 160838, Sewer Construction Fund Check Nos. 28632 to 28669, Payroll Manual Check Nos. 49097 to 49099, and Payroll Regular Check Nos. 55779 to 55804. Motion passed by unanimous vote of the Board. 2) Member Hockett reported on the May 11,2006 Recycled Water Committee Meeting. She announced the annual recycled water rate increase will be effective July 1,2006. Prior potable water customers will have a rate increase from $2.51 to $2.59 per thousand gallons, and prior canal water customers will receive a rate increase from $1.19 to $1.23 per thousand gallons. 3) President Menesini announced that, with his approval, Member Hockett has replaced Member Lucey as Chair of the Budget and Finance Committee, and Member Lucey has replaced Member Hockett as Member of the Outreach Committee. This was done at the request of Member Lucey and with the concurrence of Member Hockett. President Menesini reported on the Environmental Alliance meeting held on May 15, 2006 regarding the 1906 Earthquake: Lessons Learned, Lessons Forgotten, and New Directions. 8. ENGINEERING a. CONSIDER ADOPTING A RESOLUTION ON A POLICY REGARDING THE PROVISION OF WASTEWATER COLLECTION, TREATMENT, AND DISPOSAL SERVICES TO RESIDENTIAL DEVELOPMENTS WITH AFFORDABLE HOUSING UNITS IN ACCORDANCE WITH S8 1087 General Manager Charles Batts stated that Senate Bill 1087, approved and signed last year, requires water and sewer agencies to adopt by July 1, 2006 a written policy giving hookup priority to proposed housing developments that include low-income housing. The Book 54 - Page 160 Board Minutes of May 18, 2006 law also generally bars denying or limiting services solely because a proposed development includes affordable housing. He stated that the Board is being asked to adopt a resolution approving such a policy. It was moved by Member Lucey and seconded by Member Hockett to adopt Resolution 2006-027, approving a policy regarding the provision of wastewater collection, treatment, and disposal services to residential developments with affordable housing units in accordance with SB 1087. Motion passed by unanimous vote of the Board. b. AUTHORIZE GENERAL MANAGER TO APPROVE A CONTRACT AMENDMENT TO EXTEND SERVICES WITH PHILIP SERVICES CORPORATION FOR ONE YEAR FOR HOUSEHOLD HAZARDOUS WASTE TRANSPORTATION AND DISPOSAL SERVICES General Manager Charles Satts stated that the District's Household Hazardous Waste services contract with Philip Services Corporation is due to expire in September, 2006. The contract includes transportation and disposal of hazardous wastes, supplemental labor, and emergency response support for the treatment plant. Extending the current contract for one additional year, by contract amendment, would ease the burden on staff under the current staffing situation. The estimated cost of services for the one-year extension period is $600,000, which is competitive with other contractors providing household hazardous waste services in the Bay Area. Staff recommends that the Board authorize the General Manager to approve a contract amendment to extend the current Philip Services contract for one year. It was moved by Member Nejedly and seconded by Member Lucey to authorize the General Manager to approve a contract amendment to extend services with Philip Services Corporation for one year for household hazardous waste transportation and disposal services. Motion passed by unanimous vote of the Soard. c. AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A JOINT POWERS AGREEMENT WITH THE CITY OF CONCORD FOR THE CONCORD SEWER CONNECTION PORTION OF THE A-LINE RELIEF INTERCEPTOR PHASE 2A. DISTRICT PROJECT NO. 5980 This item was taken out of order. General Manager Charles Satts stated that the A-Line Relief Interceptor from Buchanan Fields Golf Course to the intersection of Meridian Boulevard and Galaxy Way is planned for design this year with construction to follow next year. Coincidentally, the City of Concord is planning a project to abandon its pumping station and connect via a gravity sewer to the District's A-Line Relief Interceptor. In an effort to reduce costs and construction impacts to businesses in the joint project area, and to facilitate coordination between the two projects, it is proposed that the District and the City of Concord enter into a Joint Powers Agreement to combine the individual projects. Director of Engineering Ann Farrell explained the project, stating that the City of Concord will abandon its pump station and will install a sewer from Waterworld across Walnut Creek to the District's interceptor. The District will oversee the design and construction of the project, but will be reimbursed by the City for 100 percent of design and construction costs, plus staff costs. It was moved by Member Lucey and seconded by Member Nejedly to authorize the President of the Board of Directors and the Secretary of the District to execute a Joint Powers Agreement with the City of Concord for the Concord sewer connection portion of the A-Line Relief Interceptor Phase 2A, District Project No. 5980. Motion passed by unanimous vote of the Board. Book 54 - Page 161 Board Minutes of May 18, 2006 d. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WHITLEY BURCHETT AND ASSOCIATES TO PROVIDE PROFESSIONAL ENGINEERING SERVICES FOR THE DESIGN OF THE LOWER ORINDA PUMPING STATION UPGRADES. PHASE 2. DISTRICT PROJECT NO. 5944: APPROVE AUTHORIZATION OF $80.000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT OF THE LOWER ORINDA PUMPING STATION UPGRADES. PHASE 2. DISTRICT PROJECT NO. 5944 General Manager Charles Batts stated that, last fall, staff reported that the Lower Orinda Pumping Station Renovation Project was significantly behind schedule and there was a potential claim related to the emergency standby generator and main control panel. The pumping station functioned well during this winter's major storm events with little operator intervention. The renovation project was substantially completed in January 2006. Staff is also planning to discontinue the after-hours guard service at the pumping station with the onset of dry weather. He stated that during construction, the District identified several upgrades to improve the station's reliability and maintainability. These upgrades were a direct result of the emergency plan and liability study for pumping stations initiated after the San Ramon Pumping Station overflow. Member Lucey asked when the need for upgrades became known, and what the total cost of the project will be. Principal Engineer Tad Pilecki described the project and issues that arose during construction, including a change in supplier of the emergency standby generator and late delivery of the main control panel. He stated that requested upgrades include isolation gates for the new grinders, bypass and softstart capabilities for the wet weather pumps, a building security system, and additional emergency lighting. He stated that the estimated cost of the improvements is approximately $400,000, which includes the $80,000 design agreement. It was moved by Member Nejedly and seconded by Member Lucey to authorize the General Manager to execute a professional services agreement with Whitley Burchett and Associates in the amount of $60,000 for the design of the Lower Orinda Pumping Station Upgrades, Phase 2, District Project No. 5944; and to approve authorization of $80,000 from the Collection System Program Contingency Account of the Lower Orinda Pumping Station Upgrades, Phase 2, District Project No. 5944. Motion passed by unanimous vote of the Board. 9. APPROVAL OF MINUTES a. MINUTES OF APRIL 13 AND APRIL 20. 2006 It was moved by President Menesini and seconded by Member Nejedly to approve the minutes of April 13 and April 20, 2006. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE a. RECEIVE THE FISCAL YEAR 2006-2007 OPERATIONS & MAINTENANCE BUDGET: RECEIVE THE FISCAL YEAR 2006-2007 DEBT SERVICE FUND BUDGET General Manager Charles Batts stated that the fiscal year 2006-2007 Operations and Maintenance Budget and the Debt Service Fund Budget are being submitted for review and guidance by the Board prior to a public hearing and approval of the proposed budgets scheduled for the June 1, 2006 Board Meeting. Controller Debbie Ratcliff reviewed the proposed budgets. She stated that several assumptions are embedded in the 2006-07 budget, including the assumption that the Sewer Service Charge will be increased by $9 to $289. Revenues in the budget were based on that assumption. She stated that the allocation between O&M and Sewer Construction has Book 54 - Page 162 Board Minutes of May 18, 2006 been changed, lowering the allocation to the O&M fund from $234 to $213 and raising the allocation to the Sewer Construction Fund from $45 to $76. She stated that staff is anticipating receiving all the ad valorem tax, $3.7 million of which will be allocated to the Debt Service Fund and the remaining $7.3 million to the Sewer Construction Fund. On the expense assumption side, staff is assuming a $5 million allocation for the GASB 45 post retirement benefit cost. Also, the County has increased retirement expenses for the retirement system by 2.7 per cent from 36 percent to 38.7 percent. Increases in health care costs are between 7-8% for current employees and 14% for retirees. Administrative overhead for the District has been recalculated on the actual 2004-05 numbers, and has been included in the budget. Expenses have gradually increased over the past three years. The fund balance in 2004-05 was 10.8 million, which is projected to be $14.3 million in 2005-06. Because of higher expenses and the Sewer Service Charge being allocated to the sewer construction fund, the O&M reserve fund will be drawn down by $7.2 million. Ms. Ratcliff showed overheads outlining total District-wide revenues and expenses. Total 2006-07 revenues are projected to be $85.7 million, with projected expenses of almost $89 million. With regard to salary and benefits, O&M salaries and benefits are projected to be $36 million, which is about $4.4 million more than the current year. On the sewer construction side $7.4 million in salaries and overhead will be capitalized, compared to $6 million in the current year. Over all, next year it is anticipated that the District will spend about $43.4 million on salaries and benefits, which is $5.7 million more than the current budget year. She displayed key labor costs which have also been embedded in the budget. Total labor costs will be approximately $36 million. Ms. Ratcliff discussed key budget increases, including major increases in benefits, utilities and self-insurance costs. She stated that the 2006-07 overall budget is 14.9% higher than 2005-06. With regard to the Debt Service Fund, she stated that ad valorem tax of approximately $3.9 million will be added to the revenue account. Member Lucey requested information on projected reserves and ad valorem tax revenue. General Manager Charles Batts presented a report, discussing rate setting philosophy and the 2006-07 budget. With regard to the rate-setting philosophy, he stated that traditionally the philosophy has been that modest annual increases are preferred over larger, periodic rate increases. He reviewed the workshop scenarios presented on January 26, 2006. He stated that the need for a rate increase is to maintain long-range reserves at the $34- $37 million range. A rate increase is needed to address increasing labor costs, benefits and energy costs, capital program requirements, and to avoid short-term debt financing. He stated that smaller, regular rate increases are the cheapest long-term alternative, allowing for an expanded capital program and the ability to fund unexpected needs. If no rate increase is approved, the result may be higher long-term costs, deferral of capital projects, and a negative impact on the ability to borrow. Mr. Batts compared the District's rates with other agencies, many of which are proposing large rate increases. He discussed the unfunded liability of post employment benefits, stating that GABS 45 requires the District to consider addressing the liability. He stated that staff is recommending allocation of funds in the 2006-07 budget, but added that how the funds will be set up can be decided at a later date by the Board. He concluded his report, stating that staff recommends a $9 Sewer Service Charge increase, proceeding with the District rate-setting process, approving the District budget for 2006-07, and considering the allocation of funds for other post employment benefits. Book 54 - Page 163 -1-.. Board Minutes of May 18, 2006 Member Lucey stated that he does not support an increase in the sewer service charge. He requested that ad valorem tax paid by District ratepayers be included in calculations when comparing the District's rates with those of other agencies. Member Boneysteele stated he supports paying for retiree health benefits on a pay-as-you- go basis. Member Hockett stated that she supports a rate increase and supports the allocation of funds as proposed to pay for post-employment retirement benefits. Mr. Batts stated that approval of a rate increase will help the District meet future needs and added that it is prudent to implement small, regular rate increases rather than wait until a large increase is necessary. Member Nejedly requested information on rate increases over the past six years, including information on ad valorem tax revenue. District Counsel Kent Aim explained that the current ordinance sets a sewer service charge higher than currently proposed, and stated that a resolution is needed to impose rates less than that stated by the ordinance. President Menesini stated that he supports smaller, regular increases rather than a larger one later. He stated that a $9 a year increase is a sensible approach. He also expressed support for allocating funds for post employment retirement benefits and the establishment of a trust to handle those funds. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 13. CLOSED SESSION The Board recessed at 2:35 p.m. to reconvene in Closed Session in the Caucus Room regarding: a. Conference with Legal Counsel on existing litigation pursuant to Section 54956.9 (a) of the Government Code - Suzanne Renee Brown vs. Central Contra Costa Sanitary District, et al- Contra Costa County Superior Court Case No. C05-00416. b. Personnel Matters Pursuant to Section 54957 of the Government Code - Public Employment - Title: General Manager The Board recessed at 3: 15 p.m. to reconvene in regular session in the Board Room. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION None. Book 54 - Page 164 Board Minutes of May 18, 2006 15. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at 4:40 p.m. in memory of Household Hazardous Waste Technician James Minor, who passed away on May 6,2006. ~. Preside the Board of Directo , Centr 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 Book 54 - Page 165