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HomeMy WebLinkAboutBOARD MINUTES 08-07-03 1 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 7,2003 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 August 7,2003. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Lucey, Hockett, Nejedly ABSENT: Members: None PLEDGE OF ALLEGIANCE TO THE FLAG a. Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS INTRODUCE TAHA NASSAR. NEWLY HIRED SOURCE CONTROL INSPECTOR I . Source Control Inspector I Taha Nassar was introduced and welcomed to the District by President Nejedly and the Board of Directors. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS RECEIVE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING a. Mr. Charles W. Batts, General Manager, stated that last December the Finance and Accounting Division submitted the District's Comprehensive Annual Financial Report for fiscal year ended June 30, 2002 to the Government Finance Officers Association. For the third year in a row, the District's Comprehensive Annual Financial Report was awarded the Certificate of Achievement for Excellence in Financial Reporting. Ms. Deborah Ratcliff, Controller, presented the Certificate of Achievement for Excellence in Financial Reporting to the Board of Directors. Ms. Ratcliff stated that staff is very proud to receive this for the third consecutive year. The Certificate of Achievement for Excellence in Financial Reporting is only offered to agencies with the highest reporting standards. This would not have been possible without the excellent work of Finance Administrator Colette Curtis-Brown and Accountant Thea Almendralejo who compiled the District's Comprehensive Annual Financial Report. President Nejedly and the Board of Directors commended Accounting and Finance staff on this outstanding achievement. 4. CONSENT CALENDAR Following discussion of the District's Employee Computer Hardware Purchase Assistance Program and agreement that the program would be reviewed annually, it was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through e., be approved as recommended with the modification to the Employee Computer Hardware Purchase Assistance Program 08 07 03 2 relative to annual review, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 2003-058 was adopted, directing that the 2003-2004 yearly installments of assessments for Contractual Assessment Districts be collected on the County tax roll. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: b. c. Hockett, Menesini, Boneysteele, Lucey, Nejedly None None The Board was advised of the close out of the Treatment Plant Piping Renovation and Replacement Project, DP 7183. This item was presented for the Board's information. No action was taken. Continuance of the Employee Computer Hardware Purchase Assistance Program was approved effective August 7, 2003 with review in one year. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. Hockett, Menesini, Boneysteele, Lucey, Nejedly None None A one-step salary merit increase effective June 17,2003 was approved for Engineering Assistant III Paul Seitz, as the registration differential provided for in the Memorandum of Understanding with the Employees' Association. Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Boneysteele, Lucey, Nejedly NOES: Members: None ABSENT: Members: None e. A public notice was authorized, advertising that documentation used in the determination of the appropriations limit shall be available fifteen days prior to the Board Meeting to be held on September 4, 2003, at which the appropriations limit for the Sewer Construction Fund (tax revenue plus interest) for the fiscal year of 2003-2004 will be established. Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Boneysteele, Lucey, Nejedly NOES: Members: None ABSENT: Members: None 08 07 03 3 5. HEARINGS a. CONDUCT A PUBLIC HEARIN "TO RECEIVE COMMENTS ON AN ORDINANCE TO AMEND DISTRICT CODE SECTION 6.12.090 "SCHEDULE OF CAPACITY FEES. RATES AND CHARGES": ADOPT THE ORDINANCE CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AN ORDINANCE TO REVIEW DISTRICT CODE CHAPTER 6.30 SCHEDULE OF RATES AND CHARGES FOR VARIOUS ENVIRONMENTAL AND DEVELOPMENT-RELATED SERVICES: ADOPT THE ORDINANCE b. Mr. Batts, General Manager, stated that the first public hearing today is to receive comments and consider adopting an ordinance to increase the District's Capacity and Pumped Zone Fees that are paid at the time of connection. Staff recommends that these fees be raised about 20 percent to reflect the reviewed buy-in calculation for new connections to the current value of District assets. The second public hearing is to receive comments and consider adopting an ordinance to implement a new schedule of rates and charges for the various environmental and development-related services provided by the District. These include permitting, plan review, inspection, right-of-way, Source Control charges, and charges for grease and septage receiving services. Mr. Batts introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who provided an overview of the Capacity Fees and Development-Related Rates and Charges. The current Capacity Fees are $3,360 per residential unit equivalent (RUE) for gravity service and $4,070/RUE for pumped service. These fees were last adjusted in July 2001. Due to the increase in the value of assets over the past two years since the Capacity Fees were adjusted and due to the adjustment in service life, staff is recommending that the Capacity Fees be raised by approximately 20 percent to $3,983/RUE for gravity service and $4,971/RUE for pumped service. In response to questions from Member Boneysteele, Mr. Miyamoto-Mills stated that residential unit equivalent (RUE) is calculated based on water consumption and biological oxygen demand (BOD) factors for the different categories of businesses based on a joint sampling program conducted by a group of publicly owned treatment works (POTWs). Mr. Miyamoto-Mills stated that if the Board adopts the recommended ordinance, assuming 1,500 new units in 2003-2004, the increase in Capacity Fee revenue would be $625,000 for gravity zone (1,000 units) and $450,000 for pumping zone (500 units). With regard to the second public hearing relating to Environmental Services and Development-Related Rates and Charges, Mr. Miyamoto-Mills stated that the recommended rates and charges reflect comprehensive revisions to recover actual costs of providing services, and recovery of 100 percent of the District's Administrative Overhead allocable to these services. Mr. Miyamoto-Mills stated that most of the Environmental Services and Development-Related Rates and Charges increased, a few decreased or were unchanged, some new rates and charges were added to reflect services being provided, and some rates and charges were eliminated. Detailed information on the fees, rates, and charges was reviewed with the Board Budget and Finance Committee, and then the full Board of Directors prior to distribution to the public. Over 450 letters with detailed reports and notice of informal informational meetings were mailed to the Home Builders Association, applicants, developers, engineers, business owners, contractors, and others who normally do business with the District and pay these fees, rates, and charges. Informal informational workshops were held on July 15, 2003 and July 22, 2003. No one came to either workshop. Four telephone calls were received. John Muir Hospital and PG&E Research Facility called to see if the fees applied to them and were advised that they do not. Shapell called to find out when the fees go into effect and they were advised the proposed effective date is October 6, 2003. Windemere BLC called to ask that the District consider a fee credit to account for their direct payment for District assets included in the Capacity Fee calculation (the Dougherty Tunnel and Trunk Sewer), well as to discuss the development-related fees that apply to them. A separate meeting will be held with Windemere BLC. 08 07 03 4 Mr. Kenton L. Aim, Counsel for the District, stated that there are two separate issues. Windemere is not asking that the District not go forward with adoption of the proposed increases. Windemere is saying that they believe they are in a special category and they would ask that the District come back and set up a special program for them and that a credit be given to them for the $16 million contribution they made to the Dougherty Tunnel and Trunk Sewer. Initial calculations indicate that could result in a credit in the range of $100 per unit. Mr. Aim stated that most developers only put in the infrastructure within their developments. In this case the $16 million that Windemere spent on the Dougherty Tunnel and Trunk Sewer is a figure that is used in the Capacity Fee calculation, and Windemere feels they should get a special credit for their contribution. Windemere was advised that is not on the agenda today and that staff will make a recommendation and that would require a separate Board action. Mr. Miyamoto-Mills read proposed findings relating to amendment of Chapter 6.12, Capacity Fee Program, and requested that the Board consider the proposed findings in conjunction with their deliberation. At 2:28 p.m., President Nejedly opened the public hearing to receive comments regarding adoption of the proposed ordinance to amend District Code Section 6.12.090, Schedule of Capacity Fees, Rates, and Charges. There being no comments, the public hearing was closed. President Nejedly stated that he feels it is appropriate to credit Windemere since they paid for the Dougherty Tunnel and Trunk Sewer, and it would not be appropriate for them to pay for it twice. It was moved by Member Hockett and seconded by Member Lucey, that the Board of Directors makes the following findings. Customers have made a substantial investment in assets that will benefit new users. The purpose of the Capacity Fee Program is to equalize the investment in assets between current and new users ensuring that new users pay their fair share for capacity. New users generate an added burden on services and facilities. To maintain an adequate level of service, maintenance of the existing capacity, and construction of new capacity in the future is necessary. Current fund balances and Capacity Fee revenue will be allocated to life-cycle replacement, renovéÜion, upgrading, and improvements to maintain existing capacity; and addition and expansion of facilities when needed or required to meet legal and regulatory requirements. Revenue will be allocated to equitable adjustment of contributions between current, new, and contractual users; and to fund the new users' share of "Funds Required" in the Sewer Construction Fund, Running Expense Fund, and Self Insurance Fund. There is a strong and reasonable relationship between the added burden of new users and the Capacity Fees. The Capacity Fee Program is exempt from the California Environmental Quality Act (CEQA). Based on the preceding findings, Ordinance No. 227 is adopted, amending District Code Section 6.12.090, Schedule of Capacity Fees, Rates, and Charges. Motion unanimously approved on the following vote: AYES: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None At 2:32 p.m., President Nejedly opened the public hearing to receive comments on adoption of the proposed ordinance to revise District Code Chapter 6.30, Schedule of Rates and Charges for Various Environmental and Development-Related Services. There being no comments, the public hearing was closed. It was moved by Member Menesini, and seconded by Member Hockett, that Ordinance No. 228 be adopted, revising District Code Chapter 6.30, Schedule of Rates and Charges for Various Environmental and Development-Related Services. Motion unanimously approved on the following vote: 08 07 0". 'i) 5 AYES: Members: NOES: Members: ABSENT: Members: Menesini, Hockett, Boneysteele, Lucey, Nejedly None None 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 7. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS APPROVE ST. STEPHENS SLIDE PROJECT. DP 5600. FOR CEQA/PERMITTING PURPOSES a. Mr. Batts, General Manager, stated that this is a place holder position paper and carryover from the previous meetings on the slide on private property at St. Stephens Drive in Orinda which is threatening the District sewer. The District is attempting to negotiate an agreement with the homeowners impacted by the St. Stephens slide for the homeowners to take the lead to repair the slide, and the District will participate in the cost as one of the damaged property owners. Fish and Game has agreed to an extension from October 1 to October 15, 2003 for repair of the slide before all work in the creek must cease. If an agreement cannot be reached with the homeowners in time to complete the work by October 15, approving the California Environmental Quality Act (CEQA) position paper and authorizing staff to advertise of the project would allow the District to complete this project as a District project, if the Board agrees that is appropriate. A closed session is scheduled on this matter later in the agenda. Mr. Batts introduced Mr. Tom Godsey, Associate Engineer, who updated the Board on the status of negotiations with the homeowners, and discussions with the City of Orinda. Mr. Godsey stated that the City of Orinda has agreed to accept responsibility for the storm drain once the erosion scar and old storm drain are fixed and the homeowners have granted the easement to the City. The City of Orinda has also agreed to allocate funds for a low/no interest loan to the residents to fund their portion of the repair. The homeowners are reviewing the draft agreement to fund a substantial portion of the slide repair. The homeowners have agreed to furnish the easement for City of Orinda ownership of the repaired storm drain. The homeowners have accepted the lead responsibility and are actively getting contractor quotes on the slide repair. They have met with four contractors for providing quotes. If the homeowners take the lead responsibility, California Fish and Game will take the lead with regard to CEQA. California Fish and Game has informally extended the October 1 , 2003 deadline to October 15, 2003 for completion of work in the creek. Mr. Godsey that this information is presented as an update to the Board. No action is requested at this time. President Nejedly thanked Mr. Godsey for the update. 8. REPORTS a. GENERAL MANAGER 1) Mr. Batts, General Manager, provided a State budget update. The State has a budget. Senate leaders Burton and Brulte structured a budget compromise that protects most State programs (9 percent cut - 16,000 State jobs), includes no new taxes ($4 billion in vehicle license fees), provides for borrowing $11 billion in bonds, and pushes $8 billion into next year. Ad valorem tax revenue remains for special districts. Senator Tom Torlakson indicates that the worst is two years away. Senator Torlakson calls for a simple majority budget vote, encouraging growth, revenue, and major bond measures. The call in Sacramento is for restructuring State revenue sources. Mr. Batts stated that he will discontinue his regular updates, but he will keep the Board informed of any developments that could affect the District's property tax revenue. 08 07 03 6 3) 4) 08 07 2) Mr. Batts, General Manager, stated that at the April 2003 Retirement Workshop, the Board was informed of the impacts expected over the next several years in the District's cost to the Contra Costa County Employees Retirement Association (CCCERA). It was reported that CCCERA's loss in earnings income was being made up by increased employer and employee cost-of-living adjustment (COLA) charges. For 2003-2004, the District's COLA contribution went up $1.2 million from the previous year. There will also be an impact from a required updated Actuarial Study that will be completed later this year. The Board was also advised of the impact of the increased retirement benefit of 2 percent at 55 years of age and the anticipated cost of $123,000 in 2003-2004. Lastly, the Board was advised of the estimated additional costs of the Paulson litigation that resulted in a court-approved settlement in October 1999 in which CCCERA put aside $90 million in excess earnings with the understanding that the costs would later be calculated and the final additional costs calculated for each employer. Mr. Batts reported that the actual costs associated with the Paulson litigation have been calculated at $149.3 million with a remaining liability of $34.2 million to all employers. The District share of that liability is estimated to be $1.6 million. The District has the option of a single payment or payment over a period of up to 20 years at 8 percent interest. Mr. Batts recommended that the Board consider making a lump sum payment from the Operations and Maintenance (O&M) reserve, thereby avoiding the 8 percent annual interest fee charged by CCCERA. The O&M reserve will be increased by approximately $3 million in savings implemented by staff this year. Mr. Batts stated that a position paper on this item will be presented for the Board's consideration at a future Board Meeting. Mr. Batts reported further that CCCERA has informed staff that the Actuarial Report will be submitted to the CCCERA Board at their August 13, 2003 meeting. District staff will attend that meeting. The Actuarial Report will provide an update for the District regarding anticipated contribution rates and the Unfunded Actuarial Accrued Liability (UAAL). The District's UAAL will be calculated by CCCERA over a 20-year period, and is projected to increase from the current $21 million to $56 million. Mr. Batts introduced Ms. Harriette Heibel, Community Affairs Manager, who stated that the fall issue of the CCCSD Pipeline newsletter is in the planning stages. At the Board Outreach Committee meeting on July 24, 2003, Members Menesini and Boneysteele provided input into what articles and features should be included in the upcoming issue. Ms. Heibel reviewed the proposed articles and features including Household Hazardous Waste Collection Facility news, an overview of current construction projects, Backwater Overflow Prevention Device information, controlling and preventing roots in sewers, Pollution Prevention Award winners, recent AMSA and CWEA Awards received by the District, availability of student education programs, school ribbon cutting ceremony for recycled water connection, and a survey. Ms. Heibel reviewed sample survey questions relating to the Household Hazardous Waste Collection Facility, less toxic pest control, and the CCCSD Pipeline newsletter. Ms. Heibel requested Board input on the topics. Articles will be drafted and copy will be presented for Board review at the September 18, 2003 Board Meeting. The newsletter will be printed the week of September 22, 2003 and distributed in October 2003. It was noted that staff will check with the mailing house on the cost of return postage for the survey, and receiving responses by computer as well as by mail. Mr. Batts, General Manager, stated that the District leases the surface rights to a 20-foot wide strip of land to the Willows Shopping Center for parking and landscaping. The lease would have expired in January 2003 but the District extended it for six months to allow time for negotiations between the Willows Shopping Center and the District over the lease price and the acquisition of an additional easement. The additional easement is á) G"~ \.' ~) 7 needed for the District's A-Line Relief Interceptor Project. The Willows Shopping Center management is reviewing the engineering work on the A-Line Project in the area of the shopping center. The negotiations are not complete and the shopping center has requested that the lease be extended for six months so the lease and the acquisition issue can be concluded simultaneously. Mr. Batts stated that District staff proposes to administratively extend the lease for six months with the existing terms if the Board has no objection. The Board voiced no objection. 5) Mr. Batts, General Manager, provided an update on the Moraga/Orinda Crossroads Pumping Stations pump vibration issues. The Cornell pump has arrived and is scheduled to be installed by GSE the week of August 11, 2003 at the Orinda Crossroads Pumping Station. The pump was delivered approximately one month later than promised by Cornell, who indicated that their engineers were making modifications to ensure that the pump would pass the vibration test. Installation and vibration testing will be done as soon as possible, and staff should be able to provide feedback at the August 21, 2003 Board Meeting. If this installation is successful, three replacement pumps will be ordered for Orinda Crossroads. Assuming a delivery time for the three pumps of 16 weeks, the replacement pumps could be installed at Orinda Crossroads by mid- January 2004. The pump could then be removed and tested at the Moraga Pumping Station. Assuming the pump performs adequately at Moraga, three new pumps could be in service at Moraga by the end of February. 6) Mr. Batts, General Manager, stated that the Board has requested periodic updates on Collection System Operations (CSO) efforts to reduce the backlog in collection system work. Staff would like to schedule a workshop at CSO to update the Board on progress, report on the work in the collection system and overflow prevention, and show new equipment recently put into service. Staff will contact the Board to schedule the meeting. 7) Mr. Batts, General Manager, reported that as part of the Lafayette Sewer Renovation Project, during the next two weeks there will be work around the jogging trail that parallels St. Mary's Road. Staff is working with East Bay Municipal Utility District, East Bay Regional Park District, and the City of Lafayette to minimize any impacts. Mr. Batts, General Manager, stated that the final adjusted financial statements for the fiscal year ending June 30, 2003 will be presented at the August 21,2003 Board Meeting. These are the final results prior to any potential audit adjustments suggested by the District new external auditors Vavrinek, Trine and Day. A review of savings from near-term measures implemented by staff will be presented at that meeting as well. 8) 9) Mr. Batts, General Manager, announced that the City of Walnut Creek is in the process of preparing bid documents for the resurfacing of North Main Street from Ygnacio Valley Road to Civic Drive. Construction on this project is expected to begin in January 2004. Part of the City's project involves lowering the grade of the street by 1 % feet which will require replacement of the sewer since it leaves only 1 % feet of cover over the pipe. The sewer was identified in the Walnut Creek Facilities Plan as needing to be replaced due to grease buildup, roots, and sags. This sewer work was planned for construction in 2012. The City of Walnut Creek has asked the District to work with them to have the sewer replacement project included in their road replacement project. Coordinating with the City will save the District money since we will not need to pay for repaving, and it will reduce construction impacts on the public. District staff will be providing the City with plans and specifications. A Joint Powers Agreement (JPA) will be required, similar to the one recently approved by the Board for the City of Walnut Creek storm drain. 08 07 03 8 10) 11) b. Mr. Batts, General Manager, announced that Associate Engineer Don Berger will be attending the annual Water ReUse Association Symposium in San Antonio, Texas in early September. This is an opportunity for District staff to remain current with technical, public acceptance, and political issues relating to recycled water. There will also be a California Water Environment Association (CWEA) Conference in Lake Tahoe, Nevada during the first week in September 2003 that nine District staff will be attending. These conferences are included in the 2003-2004 Operations and Maintenance Training Budget. Discussion followed with regard to sending nine people to a conference out of state, the fact that many times the cost is less in Nevada than California, opportunities for sharing information gained at conferences and technical meetings, and the benefits of investing in the education of staff. Mr. Batts stated that the District's Operations and Maintenance Training Budget is reviewed by the Board. As discussed with the Board as part of the near term response to the State of California budget crisis, Mr. Batts stated that he had indicated he would advise the Board of out-of-state travel. Mr. Batts stated that he would be reporting on conference costs at the next Board Meeting as part of the report on the savings achieved. Mr. Batts, General Manager, stated that with the State's huge budget deficit this year, the State Water Resources Control Board (SWRCB) will be raising the National Pollutant Discharge Elimination System (NPDES) permit fees to $50,000 per year, plus an additional $10,000 per year for the Pre-Treatment Program, for a total of $60,000. Another budget bill may generate up to $6.8 million to cover statewide water monitoring programs. District staff anticipated a fee increase and budgeted $50,000 for 2003-2004 NPDES permit costs. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, stated that it has been brought to his attention through the Board Budget and Finance Committee, that when the Board met in closed session on the Siu litigation relating to easements needed for the Wendt Ranch Offsite Sewer Project and when the Board discussed settlement, two payments to the Siu's, one for $2,500 and one for $5,355.17, were not specifically brought to the Board's attention; and therefore, the Board did not authorize those payments specifically over and above the payment for the easement. The payment in the amount of $5,355.17 was in lieu of costs for temporary fencing and would normally have been part of the construction contract. The payment in the amount of $2,500 was for animal care during construction. That was negotiated and agreed to and not specifically brought to the Board in closed session. These payments were made and were included in the settlement agreement, but were not specifically brought to the Board's attention in closed session when this matter was discussed. Mr. Aim stated that in the future, the General Manager has directed him and other staff to prepare written summaries for all closed sessions. Mr. Aim stated that he believes that this is a good idea and it was his custom in the past. Mr. Aim read the demands listed in the letter from the Siu's attorney. Discussion followed with regard to other potential costs that could arise concerning this matter. Member Lucey requested that staff review settlements authorized by the Board in the last six months to see if there are any cases where Board authorization was exceeded. Mr. Batts stated that he would do that and report back to the Board. Member Boneysteele stated that he is not sure this exceeds staff authority, and he noted that this is the request of one Board Member and has not been voted on by the full Board. 9 c. SECRETARY OF THE DISTRICT d. None BOARD MEMBERS 1 ) Member Hockett distributed and reviewed the notes from the July 21, 2003 Recycled Water Committee meeting. Topics of discussion included a status report on the District's Recycled Water Program, an update on landscape connections, a photo and caption for the CCCSD Pipeline newsletter, Bay Area Regional Water Recycled Program (BARWRP) master planning efforts, input to Contra Costa Water District encouraging recycled water use relative to the proposed Los Vaqueros expansion, and ribbon cutting ceremonies for Sequoia Schools and Animal Services Facility connections. Member Hockett also suggested that the District encourage legislation requiring the use of recycled water for CalTrans projects such as the one currently under construction near the District treatment plant. 2) Mr. Batts, General Manager, reported on the July 21,2003 Contra Costa Special Districts Association meeting at which the featured speaker was Annamaria Perralla, Executive Director of Local Agency Formation Commission (LAFCO). Member Hockett reported on the July 24, 2003 Sanitation and Water Agencies meeting, which included a tour of the Delta Diablo Sanitation District Household Hazardous Waste Facility and a farewell to Paul Causey who is retiring from Delta Diablo Sanitation District. 3) 4) Members Menesini and Boneysteele distributed and reviewed the notes from the July 24,2003 Board Outreach Committee meeting at which topics of discussion included CCCSD Pipeline newsletter articles; a dental outreach survey; outreach on rates, charges and fees; outreach on the backwater overflow prevention device; the Environmental Sciences Collaborative; Integrated Pest Management (I PM); student education programs, and recycled water. BREAK President Nejedly declared a recess at 4:02 p.m., reconvening at 4:12 p.m. with all parties present as previously designated. a. 9. ENGINEERING AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WINDEMERE BLC LAND COMPANY LLC AND SHAPELL INDUSTRIES OF NORTHERN CALIFORNIA FOR PAYMENT OF COSTS ASSOCIATED WITH ACCELERATING CONSTRUCTION OF IMPROVEMENTS TO THE SAN RAMON PUMPING STATION AND FORCE MAIN Mr. Batts, General Manager, stated that as part of the settlement agreement with the City of San Ramon regarding the Dougherty Tunnel and Trunk Sewer Project, the District agreed to the City's demand that improvements at the San Ramon Pumping Station and Force Main be built on an accelerated schedule. To meet the required timetable for the work, the District sold Revenue Installment Certificates to finance the work and the Dougherty Valley developers agreed to pay the cost of acceleration of the District capital projects. This staff-recommended agreement will formalize the arrangement for the developers to pay installment interest payments on the certificates twice a year. Both developers, Windemere and Shapell, have made their first two payments and have been billed for the next installments that are due on September 1 . It was moved by Member Menesini and seconded by Member Hockett, that the General Manager be authorized to execute an agreement with Windemere BLC Land Company LLC and Shapellindustries of Northern California for payment of the costs associated 08 07 03 10 with advancing or accelerating improvements to the San Ramon Pumping Station and Force Main. There being no objection, the motion was unanimously approved. 10. HUMAN RESOURCES a. ADOPT MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE EMPLOYEES' ASSOCIATION. PUBLIC EMPLOYEES UNION. LOCAL ONE EFFECTIVE JULY 8,2003 THROUGH APRIL 17,2009 Mr. Batts, General Manager, stated that the Union membership ratified the District's offer on July 29,2003. With the Board's approval, the labor agreement with Local One will be effective July 8, 2003, the date of the District and the Union participation in the mediation offer. The contract with the Union is for six years and will terminate on April 17,2009. It was moved by Member Hockett and seconded by Member Lucey, that the Memorandum of Understanding between the District and the Employees' Association, Public Employees' Union, Local One, effective July 8,2003 through April 17, 2009, be adopted. There being no objection, the motion was unanimously approved. b. AUTHORIZE THE TWO PERCENT AT FIFTY-FIVE YEARS OF AGE RETIREMENT BENEFIT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 31676.16 Mr. Batts, General Manager, stated that as part of negotiations with all three bargaining groups, the Board approved enhancing the retirement benefit from 2 percent at 58.5 years of age to 2 percent at 55 years of age. The Contra Costa County Employees Retirement Association (CCCERA) requires the District Board of Directors to adopt a resolution to implement the 2 percent at 55 benefit. The benefit will be effective July 1, 2003. Member Lucey expressed support for approval of this item, but expressed concern about the long-term viability of CCCERA. Member Lucey suggested that the District begin looking into CalPERS, as it is a bigger and more sophisticated organization. It was moved by Member Hockett and seconded by Member Menesini, that Resolution No. 2003-059 be adopted, authorizing the two percent (2%) at fifty-five years of age retirement benefit in accordance with Government Code Section 31676.16 effective July 1,2003. There being no objection, the motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Boneysteele, Lucey, Nejedly None None 11. APPROVAL OF MINUTES a. MINUTES OF JULY 17. 2003 It was moved by Member Menesini and seconded by Member Boneysteele, that the minutes of July 17, 2003, be approved as presented. There being no objection, the motion was unanimously approved. 12. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED AUGUST 7. 2003 a. Member Lucey, Chair of the Budget and Finance Committee, stated that he and President Nejedly reviewed the expenditures and are not recommending approval at this time. Member Lucey requested that approval be put off until the next meeting by which time staff will have had an opportunity to respond to questions raised. 08 011 00 . ! tJ 11 13. BUDGET AND FINANCE a. AUTHORIZE EXECUTION OF THE AM£t::!DED A~EST A[ED GROUP ANNUITY CONTRACT AND REVISEtj ADMINISTRATIVE SERVICES AGREEMENT WITH HARTFORD LIFE Mr. Batts, General Manager, stated that the Deferred Compensation Plan Advisory Committee is recommending that the Board authorize the execution of the amended and restated Group Annuity Contract and revised Administrative Services Agreement with Hartford Life. Hartford Life has been one of the District's Deferred Compensation providers for many years. Hartford Life is offering a new and improved contract to the District. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that the District is very excited about several changes. There are 25 new investment funds, internet-based retirement planning and advisory services, and a reduction in administrative fees from 0.9 percent to 0.25 percent. The Contingent Deferred Sales Charge is being eliminated. In the past those who had Hartford Life had to stay with that plan for 12 years or Hartford Life would take 5 percent of the account balance. Ms. Ratcliff stated that staff has been working to get this eliminated for years. There is no cost to the District for any of these changes and fees to employees will be reduced. It was moved by Member Lucey and seconded by Member Menesini, that execution of the amended and restated Group Annuity Contract and revised Administrative Services Agreement with Hartford Life be authorized. There being no objection, the motion was unanimously approved. b. RECEIVE JUNE 2003 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, presented the preliminary results of operations and maintenance for the month of June 2003, noting that expenditures were $223,000 less than budget, representing a 4.7 percent favorable variance. Year-to-date O&M expenditures were $3.4 million less than budget, representing an 8.4 percent favorable variance. Year-to-date O&M revenues of $41.2 million were $539,000 less than budget, representing a 1.3 percent unfavorable variance. Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $22,840,000, $1.5 million greater than expenditures of $21 ,830,000. Ms. Ratcliff noted that these figures are net of Dougherty Valley expenses and reimbursements. Ms. Ratcliff reported that the District's temporary investments were held in commercial paper and the District's Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF account through June 2003 was 1.69 percent. President Nejedly declared that the preliminary June 2003 Financial Statements were duly received. 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Lucey stated that the Budget and Finance Committee questioned the Workers' Compensation expenses increase from $300,000 to $700,000 this year, and requested a report on Workers' Compensation at a future Board Meeting. 16. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The titles of the litigation to be discussed are as follows: 1 ) Dyan Heath v. Central Contra Costa Sanitary District, et ai, Contra Costa County Superior Court Case No. C03-00558 08 07 03 12 2) William Barclay and Sandra Barclay v. Mountain Cascade, Inc., Central Contra Costa Sanitary District, et ai, Contra Costa County Superior Court Case No. C03-00269 b. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. One potential matter was discussed. INITIATION OF LITIGATION c. Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District has decided or is deciding whether to initiate litigation. One potential matter was discussed. At 4:30 p.m., President Nejedly declared the closed session to discuss litigation pursuant to Government Code Sections 54956.9(a), (b), and (c) as noted above. At 5:35 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. 17. REPORT OF DISCUSSIONS IN CLOSED SESSION Mr. Kenton lo Aim, Counsel for the District, announced that the Board approved District contribution to settlement in the amount of $8,000 in the matter of Dyan Heath v. CCCSD, et ai, Contra Costa County Superior Court Case No. C03-00558. 18. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 5:38 p.m. f4 ~~tt. ~._-~ ~. Pres' nt of the Board of ' rect rs, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 08 017 03