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HomeMy WebLinkAboutBOARD MINUTES 05-10-07 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 10, 2007 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, May 10, 2007. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, Lucey, McGill, Nejedly ABSENT: Members: Menesini a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Board Members welcomed newly-hired Senior Household Hazardous Waste Technician, Jesse Folks and Senior Engineering Assistant, Heath Culbreath. They congratulated Chris Carpenter on his promotion to Community Affairs Representative and Dave Reindl on his promotion to Senior Engineer. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Lucey to approve the Consent Calendar, to adopt resolutions, and to authorize recordings. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Nejedly NOES: Members: None ABSENT: Members: Menesini a. Approve expenditures dated May 10, 2007. Reviewed by Budget and Finance Committee. Book 56 - Page 98 Board Minutes of May 10, 2007 b. Approve minutes of April 5, 2007 Board Meeting. c. Adopt Resolution 2007-054 accepting an offer of dedication from the Trustees of the Edward S. Ageno 1992 Trust, (Job 5576 - Parcel 2; Danville Square, Danville) accepting public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. d. Adopt Resolution 2007-055 accepting an offer of dedication from Shapell Industries, Inc., for easement shown on the recorded final map of subdivision 7984 in the Dougherty Valley Area, accepting Job 5583 - Parcel 3, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. e. Adopt Resolution 2007-056 accepting an offer of dedication from Shapell Industries, Inc., for an easement shown on the recorded final map of subdivision 7984 in the Dougherty Valley Area, accepting Job 5614 - Parcel 3, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. f. Adopt Resolution 2007-057 accepting an offer of dedication from Shapell Industries, Inc., for an easement shown on the recorded final map of subdivision 8631 in the Dougherty Valley Area, accepting Job 5627- Parcel 2A, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. g. Adopt Resolution 2007-058 accepting an offer of dedication from Shapell Industries, Inc., for an easement shown on the recorded final map of subdivision 7984 in the Dougherty Area, accepting Job 5627- Parcel 2B, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. h. Adopt Resolution 2007-059 accepting an offer of dedication from Los Encinos Moraga Associates, LLC, for an easement shown on the recorded final map of subdivision 8444 in the Town of Moraga, accepting Job 5781 - Parcel 2, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. i. Approve North Orinda Sewer Renovations, Phase 3, District Project 5963, for CEQA/Permitting purposes. j. Approve a license agreement with Saint Mary's College for operation of a softball field over District property. Book 56 - Page 99 Board Minutes of May 10, 2007 k. Set public hearing on May 24, 2007, to receive public comment on the Draft Fiscal Year (FY) 2007-2008 Capital Improvement Budget and 2007 Ten-Year Capital Improvement Plan Document. l. Set public hearings on June 7, 2007, to receive public comment on the Fiscal Year 2007-2008 Operations and Maintenance Budget, Debt Service Fund Budget, and the Self-Insurance Fund Budget and for the establishment of the Fiscal Year 2007-2008 and Fiscal Year 2008-2009 Sewer Service Charge rates, and on the collection of current Sewer Service Charges and prior year delinquent charges by placing them on the County tax roll. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 7.a. was taken out of order. 7. ENGINEERING a. ADOPT A RESOLUTION REQUESTING THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) TO EXCLUDE 9 PROPERTIES THAT ARE LOCATED OUTSIDE THE URBAN LIMIT LINE FROM THE DISTRICT ANNEXATION APPLICATION OF 253 PROPERTIES IN THE ALHAMBRA VALLEY, DISTRICT ANNEXATION NO. 168 General Manager James Kelly stated that, at the April 19, 2007 Board Meeting, staff apprised the Board about an issue regarding the District's application to LAFCO to annex 253 properties in the Alhambra Valley. The Contra Costa County Community Development Department has questioned the annexation of 9 of the 253 properties. These nine properties are located outside the County urban limit line. The County requested that the District remove these properties from the proposed annexation. The Board requested that staff discuss this issue with County and LAFCO staffs. LAFCO staff voiced two positions: the environmental assessment needs to be expanded prior to annexation of all the requested properties; and LAFCO staff will strongly recommend the properties also be annexed into Martinez as part of the annexation or shortly thereafter. Based on staff’s meeting with the County and LAFCO, staff recommends the Board not act on the position paper today. Staff is working with LAFCO on a two-step annexation process that will allow construction of the trunk sewer this summer. The nine property owners who are affected by this annexation issue were notified about this agenda item. Environmental Services Division Manager Curt Swanson presented a report, stating that the District originally requested that 253 properties be annexed. Nine of those properties are outside the urban limit line. The County asked that staff remove those nine properties from the annexation request. In further meetings with LAFCO, they indicated that the environmental review is inadequate for all the properties other than the 15 acre Busby parcel which is to be subdivided into 23 lots. LAFCO staff also requested that any annexation to the District also be annexed to the City of Martinez, if Book 56 - Page 100 Board Minutes of May 10, 2007 possible. Mr. Swanson described what would be required for urban limit line changes if the nine properties outside of the urban limit line are to be accommodated. He stated that out-of-agency service agreements, which are contracts between the District and the property owners, are also an alternative to annexation. In response to a question from Member Lucey, Mr. Swanson stated that a supplemental Environmental Impact Report or negative declaration could be completed in a three- month period. He stated that staff recommends deferring action related to the 230 properties and requesting LAFCO to proceed with the annexation of the Alhambra Valley Estates subdivision (Busby parcel) now. Staff proposes to prepare the environmental documents for annexation of the remaining properties. Mr. Kelly confirmed that the City would be the conducting authority for a boundary reorganization by submitting a petition to LAFCO. He stated that the City Manager of Martinez asked if there is a mutual annexation agreement, but none currently exists. District Counsel Kent Alm stated that the City of Martinez currently provides water service to many of the parcels in the Alhambra Valley, and the City supports annexation of those parcels. Member Lucey pointed out that some residents do not want to be annexed to City. He requested more options and information regarding how long the project might be delayed. Mr. Swanson stated that the proposed next steps are to amend the LAFCO annexation to annex only the Alhambra Valley Estates subdivision (1 parcel); to defer the decision regarding annexation of nine properties; to begin the CEQA process for the remainder of the Alhambra Valley properties (252 parcels) to early Fall; to proceed with construction of Phase 2 of the project after the National Park Service right-of-way is granted; and to provide status reports to the Board. Mr. Alm clarified that, while the District could file its own petition, LAFCO may require it be tied to the City of Martinez annexation. Member Lucey requested that a letter be sent to residents as soon as possible updating them on the situation. The public hearing was opened. Mr. Kon Andronis expressed disappointment with LAFCO. He owns one of the nine properties outside the limit line and said he does not object to being annexed to the City of Martinez. Book 56 - Page 101 Board Minutes of May 10, 2007 President Nejedly stated that the current situation is unacceptable and that provision of sewer service to those parcels is vital. He stated that the District will continue on with annexing the 15-acre Busby parcel. He encouraged the owners of the nine properties outside the limit line to write letters to the appropriate parties. Mr. Brian Leigh stated that he spoke to Patrick Roche at the County, who said he knew nothing about the project until five weeks ago. Member Lucey observed that, to date, the LAFCO Board is not aware of this project, only the LAFCO Executive Director. He stated that the Board will make the decision and suggested that the LAFCO Board be approached prior to discussing the matter with the City of Martinez. Six residents stressed their strong desire to receive sewer service and thanked the Board for their support. It was moved by Member Nejedly and seconded by Member Hockett to direct staff to submit a new application to LAFCO to annex the 15-acre Busby property (Alhambra Valley Estates subdivision) only, and to defer acting on the nine properties outside the urban limit line, and to begin the CEQA process on the remaining 252 properties which includes the nine outside the limit line. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Nejedly NOES: Members: None ABSENT: Members: Menesini 5. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,256,089 FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATIONS, PHASE 5, DISTRICT PROJECT 5964, TO CALIFORNIA TRENCHLESS, INC., THE LOWEST RESPONSIVE BIDDER, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS General Manager James Kelly stated that, on April 11, 2007, six bids were received and opened for the construction of Project Number 5964, Walnut Creek Sewer Renovations Phase 5. A technical and commercial review of the bids was conducted and it was determined that California Trenchless Incorporated was the lowest responsive bidder with a bid amount of $1,256,089. He stated that staff recommends award of a construction contract to California Trenchless and to authorize the General Manager to execute the contract documents. Associate Engineer Dana Lawson presented a report, stating that Phases 1-4 renovated 26,435 feet of sewer in Walnut Creek, and Phase 5 will renovate 6,530 feet. The District-wide TV program has identified another 106,000 feet of pipe for evaluation and Book 56 - Page 102 Board Minutes of May 10, 2007 possible renovation. The Downtown area will also be evaluated using the TV results for source control/grease problems and inadequate slopes. She stated that Phase 5 consists of pipe renovation mostly in streets, using open cut and pipeburst methods. Several spot repairs will also be performed. She showed photographs of areas to be addressed by the renovation project. It was moved by Member Lucey and seconded by Member Hockett to award a construction contract in the amount of $1,256,089 for the construction of the Walnut Creek Sewer Renovations, Phase 5, District Project 5964, to California Trenchless, Inc., the lowest responsive bidder, and to authorize the General Manager to execute the contract documents. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Nejedly NOES: Members: None ABSENT: Members: Menesini 7. REPORTS a. GENERAL MANAGER 1) Update on Martinez Sewer Renovation, Phase 1 General Manager James Kelly stated that District Project 5975, Martinez Sewer Renovations Phase 1, will renovate 2,600 feet of six and eight-inch sewer pipe in Marina Vista, and in easements on Ulfinian Way and Green Street by use of open cut and pipeburst methods. This project will be advertised in June and will be opened in July 2007. The construction cost is currently estimated at $920,000. Associate Engineer Dana Lawson presented a report on the project. She gave an overview of the project, which includes Green Street, Ulfinian Way, and Marina Vista. She described the limits of work on Marina Vista, which will replace the existing sewer which is in poor condition. The City of Martinez has paving plans for Marina Vista/Escobar in 2008-09. She described the public outreach, which includes a 30-day notice to the County Courthouse facilities which will be included in juror packets, and a public workshop to be held late May. Construction signs will be posted three weeks in advance notifying drivers of upcoming construction/delays. Discussions have been held with the City of Martinez, and current plans are to conduct weekday work only. Trucks will be detoured to Shell Avenue, and an island in Marina Vista will be removed to facilitate traffic flow. She stated that the project is expected to be completed by the end of the year. Book 56 - Page 103 Board Minutes of May 10, 2007 2) Update on Board Room Map General Manager James Kelly stated that staff is in the process of updating the District’s Board Room map. Two versions of the map showing the District’s current service area were displayed for Board Member comments. The main difference between the two maps was that one shows all sewers ten inches and greater in size. Since the maps are produced in-house by the District’s Engineering Support Group, map updates can be readily produced. Staff is currently working on adding the County’s Urban Limit Line and the District’s Sphere of Influence to future map updates. Mr. Kelly recommended using the map showing the sewers of ten inches and greater. Board members concurred. 3) Proposed attendance of Member Michael McGill the Water Environment Federation Technical Exhibition and Conference (WEFTC), San Diego, California - October 13-17, 2007. It was moved by President Nejedly and seconded by Member Hockett to approve Member McGill’s attendance at the conference. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Nejedly NOES: Members: None ABSENT: Members: Menesini The following written announcements were provided to the Board. 4) Recent Bay Area Air Quality Management District (BAAQMD) Actions BAAQMD issued a $250 settlement offer to the District on April 19, 2007, to resolve Notice of Violation No. A48606, which was issued on November 26, 2006. The Board was previously informed of the NOV at the Board Meeting on December 7, 2006. The NOV was issued for operating the multiple-hearth furnace at less than 1,000 degrees Fahrenheit while burning landfill gas. The temperature drop occurred during the annual switch from one furnace to another. Staff has accepted the offer and mailed a check for $250 to BAAQMD. Also, the District received a Notice of Violation on April 18, 2007, for failure to report an inoperable monitor. On April 11, 2007, the BAAQMD Inspector and District Associate Control Systems Engineer Bill McEachen discovered a “stuck” high-temperature reading on an auxiliary boiler while reviewing treatment plant data. A loose wire on the temperature sensor was identified as the problem and was immediately corrected. However, because the inoperable monitor was not identified earlier, a Notice of Violation was issued. Book 56 - Page 104 Board Minutes of May 10, 2007 The Operations shift supervisors, the Plant Operations Superintendent, and the Associate Control Systems Engineer review compliance data daily. Because these reviews were focused on compliance, which is a minimum temperature value of 770 degrees Fahrenheit, they did not detect the “stuck” high-temperature reading. An alarm was added to notify the shift supervisors when the temperature value is high. 5) Participation in Earth Day The District was one of 50 exhibitors at the Saturday, April 21, 2007 celebration at John Muir National Park in Martinez. In spite of cool weather, more than 2,000 people attended the day-long celebration. Various division employees worked the District booth with a display focused on the Household Hazardous Waste Collection Facility and Pollution Prevention. Several boxes of literature on pesticide-free gardening and household cleaning tips along with Household Hazardous Waste magnets and children’s puzzles were distributed during the day. One of the most popular elements of the entire fair was the "Construction Zone" which included a photo backdrop of a bulldozer, actual construction signs, pieces of sewer pipe, hardhats, work vests and a 90-pound jackhammer. These were used as props by Collection System Operations Maintenance Crew Leader Don Turk while he took over 200 Polaroid photos of children and their families throughout the day. 6) Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association sent a letter of notification on April 4, 2007, stating that the District’s comprehensive Annual Financial Report for Fiscal Year ending June 30, 2006 qualified for the Certificate of Achievement for Excellence in Financial Reporting Award. This award is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. 7) Employee Attendance at Water Environment Federation (WEF) Conference on Collection Systems Issues Associate Engineer Gail Chesler of the Environmental Services Division in Engineering will be attending the WEF Specialty Conference on Collection System Issues from Saturday, May 12 through Wednesday, May 16, 2007. The training will take place in Portland, Oregon. Her attendance at this conference is a specific line item in the Training budget for the division. Book 56 - Page 105 Board Minutes of May 10, 2007 8) Recognition in the Contra Costa Times by Bay Area Green Business Program The District’s Fleet Services has been recognized again by the Bay Area Green Business Program as a government agency that meets their standards for pollution prevention, reduction of solid waste, and conservation of resources. The Green Business Program recognized more than 250 businesses and agencies in Contra Costa County in an ad in the Contra Costa Times on Monday, April 23, 2007. 9) San Ramon Mobile Household Hazardous Waste Collection Event The District conducted a mobile household hazardous waste collection event in San Ramon on Saturday, April 28, 2007. The event took place from 9:00 a.m. to 2:00 p.m. There was a total of 352 residents who participated in the event. Of this total, 238 residents were from San Ramon, 94 from Danville, and 18 from the unincorporated areas (Alamo, Diablo, etc.). Also, there were two residents from outside of the service area (Pleasanton). The District will not be conducting a mobile collection event next fiscal year. 10) Television Inspection of Sanitary Sewers (Phase 5), DP 5547 Staff intends to advertise for the Television Inspection of Sanitary Sewers on May 11, 2007 and May 21, 2007 with bid opening on May 25, 2007. The position paper for award is planned for June 7, 2007. The work is a 1-year service contract that provides sewer TV inspection services for the District wide assessment of sewers with an option to add a second year. The estimated quantity of TV inspection is 1,500,000 feet within the cities of Martinez and Danville. 11) Status of easement negotiations for North Orinda Sewer Renovations (Phase 2.1, Tarry Lane/Van Tassel Lane), DP 5968 Of the six properties that were covered by the "Resolution of Necessity" for eminent domain, current status is as follows: - Four have been settled with signed documents in hand; - One is considering the District's current offer; and - One has been transferred and a tentative settlement has been discussed with the "successor trustees." Book 56 - Page 106 Board Minutes of May 10, 2007 A "Complaint in Eminent Domain" and a "Notice of Hearing for Order of Possession" have been filed for the last two properties in the case that settlement cannot be reached in a timely manner. 12) Public Bidding of Martinez Sewer Renovations (Phase 1), DP 5975 The project will renovate 2,600 feet of 6 and 8-inch sewer pipe in Marina Vista, and in easements on Ulfinian Way and Green Street by use of open cut and pipeburst methods. This project will be advertised in June and bids will be opened in July. Specific dates will be announced at a future Board meeting. The construction cost is currently estimated at $920,000. 13) Alhambra Valley Trunk Sewer Project On May 2, 2007, the National Park Service (NPS) held a public meeting at the John Swett Elementary School in Martinez to receive comments on the draft Environmental Assessment (EA) report. A copy of the EA was provided to the Board at the April 19, 2007 meeting. The District prepared display boards and provided copies of the EA for the attendees. There were 15 attendees, all residents and property owners within Alhambra Valley. The majority of questions centered on how the potential sewer routes were determined and when project construction would be completed but there was no opposition. The public review period will end on May 18, 2007, and public comments and responses will be incorporated into the final report. When the EA process is completed, provided the NPS Regional Director finds there are no significant impacts resulting from the project (and there are none thus far), the District and the NPS will enter into a License Agreement for construction and maintenance of the trunk sewer across the NPS property. Staff expects the agreement will be completed in time to allow the construction of the trunk sewer this summer. 14) Proposition 218 Sewer Service Charge CCCSD mailed over 107,000 notices of the proposed increase in Annual Sewer Service Charges. To date, 7 letters, 52 telephone calls, and 14 e- mails have been received in response to this notice. Twenty-four of the responses were general questions about the method of collection and the rate category applied to them. Nineteen of the responses were to relay that the property was on septic tank and not connected to the sanitary sewer. Fourteen of the responses were opposed to the increase, citing that it was more than the inflation rate. Some of the responses were from senior citizens that expressed a desire for a senior rate, and a few more Book 56 - Page 107 Board Minutes of May 10, 2007 suggested a metered approach to billing for sewer service. There were also a couple of responses that were not opposed to the increase and praised the District for its service and reasonable rates. Staff will continue to monitor the Sewer Service Charge rates hotline and e-mail, and provide responses to any inquiries. A full report will be presented at the public hearing scheduled for the June 7, 2007 Board Meeting. 15) Plant Wet Weather Protection Project Staff met with the Flood Control District (FCD) on April 30, 2007 to go over the recently completed Corps Of Engineers (COE) hydraulic analysis of Walnut Creek. The preliminary results show that only a small portion of District property, just north of Basin B, is flooded during a 100-year storm event. The model also indicates that there is anywhere from 1 to 3 feet of freeboard along the levees fronting District property. Staff will be meeting with FCD staff on May 9, 2007 to further review the results, compare them to the water surface elevations observed on December 31, 2005, and to discuss near-term flood protection measures. A full report on the meetings and results will be provided to the Board at the May 24, 2007 Board Meeting. 16) Discussions with East Bay Regional Park District (EBRPD) Staff met with East Bay Regional Parks District Trails Development Program Manager Jim Townsend on April 13, 2007 to look at the general vicinity of the Shell Pipeline in Moraga. The Park District continues to be interested in pursuing development of a trail over an approximate 4-mile long corridor at the end of the portion that is own by the District. Each year, Jim Townsend does a presentation to the EBRPD Board to update them on recent trail developments. He will include information on the Shell Pipeline opportunity as part of his presentation at their May 17, 2007 Capital Trails Board Workshop. At this time, their Board will have an opportunity to indicate their interest in pursuing the development of a trail. 17) Marketing Effort to Pipeline Operators and Telecommunication Companies Staff mailed out letters on March 14, 2007 soliciting interest in the District pipeline. Advertisements were subsequently run in the Contra Costa Times, San Francisco Chronicle, San Francisco Business Journal, and the San Jose Business Journal. No letters of interest have been received to date; however, staff has received five follow-up calls from potentially Book 56 - Page 108 Board Minutes of May 10, 2007 interested parties. The deadline for receiving Letters of Interest is May 10, 2007. 18) General Manager James Kelly announced the repair of a natural gas line in front of the Headquarters Office Building. 19) General Manager Kelly announced the upcoming Environmental Alliance meeting to be held on May 21, 2007, regarding “The Regional Water Quality Control Board and Emerging Water Quality Challenges in the San Francisco Bay Area.” b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm reported that, in response to previous questions from Board Members, most financial reports may be placed on the Consent Calendar, including approval of expenditures and routine financial reports. He suggested that the Board may wish to receive more detailed reports verbally twice a year. c. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced that there is a special Board Workshop on the Collection System Operations project to be held on May 15, 2007. d. Board Members 1) Member McGill reported on the May 7, 2007 Budget and Finance Committee meeting. He stated that the Committee recommended that the additional financial reports be placed on the Consent Calendar, other than verbal reports twice a year. 2) Member Lucey reported on the April 24, 2007 Ad Hoc Collection System Operations Committee meeting. He stated there will be a study session on May 15, 2007. 3) Member Hockett reported on the May 1, 2007 Capital Projects Committee meeting. 4) Members Hockett and McGill reported on their attendance at the May 2-5, 2007 California Association of Sanitation Agencies (CASA) Conference in Napa. 5) Member Hockett reported on the May 2-5, 2007 California Association of Sanitation Agencies (CASA) Executive Board meetings. Book 56 - Page 109 Board Minutes of May 10, 2007 8. HUMAN RESOURCES a. APPROVE STAFFING PLAN FISCAL YEAR 2007-2008 General Manager James Kelly stated that the Board received the Staffing Plan at its April 5, 2007 Board meeting. Staff met and conferred with Local One regarding the effects of the Staffing Plan. Overall, Local One gains one new member under the plan. Staff recommends approval of the Staffing Plan. Local One President David Rolley addressed the Board, objecting to the elimination of one Maintenance Crew Member position in the Collection System Operations Department. He recommended retaining the position. Member Lucey stated that the Personnel Committee reviewed the Staffing Plan and recommends approval of the Plan as presented. In response to a question from Member Hockett, Mr. Brennan explained the staffing situation and stated that an additional supervisor was needed. General Manager James Kelly stated that it is staff’s opinion that the work can be accomplished with the proposed staffing changes; however, the staffing level could be reevaluated at a later date if necessary. It was moved by Member Lucey and seconded by Member McGill to approve the Staffing Plan as recommended for Fiscal Year 2007-2008. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Nejedly NOES: Members: None ABSENT: Members: Menesini 9. BUDGET AND FINANCE a. RECEIVE MARCH 2007 FINANCIAL STATEMENT Controller Debbie Ratcliff presented a report on the Running Expense Fund, the Sewer Construction Fund and Temporary Investments. Member McGill stated that labor charges assume100 percent filled positions, while benefits charges assume a 3 percent vacancy. He stated that next year, the assumption will be a 3 percent vacancy factor on labor charges also. Book 56 - Page 110 Board Minutes of May 10, 2007 b. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE FUND AND APPROVE THE ALLOCATION OF $800,000 TO THE FUND FOR INCLUSION IN THE 2007-08 OPERATIONS AND MAINTENANCE BUDGET. REVIEWED BY BUDGET AND FINANCE COMMITTEE General Manager James Kelly stated that, each year, staff reviews the proposed Self- Insurance Fund (SIF) budget and the Operations and Maintenance (O&M) Fund allocation to the fund with the Board. Director of Administration Randy Musgraves provided the Board with an overview of the SIF and budget request. He stated that the Budget and Finance Committee reviewed this item in detail at their May 7, 2007 meeting and recommends approval. The SIF is made up of three sub funds to comply with GASB 10. Mr. Musgraves showed the history of revenue, expense and reserve balances, history of loss payment and insurance premiums, and self insurance fund reserves by sub-fund. Premiums are continuing to increase and this year an allocation of $800,000 is recommended. The increase is partly due to the payment of the Suzanne Brown claim, which also may affect future premiums. He stated that the District averages $150,000 annual payout for about 40 claims per year. The $800,000 allocation will be moved into Subfund C, which pays for administrative costs and premiums. A portion will be transferred to Subfund A, for reserves. Subfund B is a pollution prevention and employment liability subfund, which the Board in the past has funded reserves at $2.45 million. This figure has remained fairly constant. It was moved by Member Hockett and seconded by Member McGill to approve the allocation of $800,000 to the Self Insurance Fund for inclusion in the 2007-08 Operations and Maintenance Budget. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Nejedly NOES: Members: None ABSENT: Members: Menesini 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. Book 56 - Page 111 Board Minutes of May 10, 2007 14. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:04 p.m. ,fA"",- 4- ~J~ Jam . Nejedly President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Q2&efLQ Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 56 - Page 112