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HomeMy WebLinkAboutBOARD MINUTES 02-01-96 14 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 1, 1 996 The District Board of the Central Contra Costa Sanitary District convened in regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:05 p.m. on February 1, 1996. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Dalton, Rainey, Hockett, Boneysteele, Menesini ABSENT: Members: None 2. PUBLIC COMMENTS None a. 3. AWARDS AND COMMENDATIONS ADOPT A RESOLUTION HONORING PHILLIP A. SAUER, UTILITY WORKER. RECIPIENT OF EMPLOYEE SERVICE AWARD FOR 35 YEARS OF SERVICE TO THE DISTRICT Mr. Roger J. Dolan, General Manager-Chief Engineer, requested that the Board recognize Mr. Phillip A. Sauer, Utility Worker, for 35 years of service to the Central Contra Costa Sanitary District. A resolution has been prepared for the Board's approval and will be presented to Mr. Sauer by Plant Operations Department staff. It was moved by Member Dalton and seconded by Member Rainey, that Resolution No. 96-030, A Resolution of Commendation and Thanks to Phillip A. Sauer, Utility Worker, be adopted. There being no objection, the motion was unanimously approved. President Menesini commended Mr. Sauer for his long and dedicated service to the District and requested that staff convey the Board's congratulations to Mr. Sauer. 4. CONSENT CALENDAR Following discussion of the Quitclaim Sewer Easement to BSFS/CASA, it was moved by Member Boneysteele and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through g. be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 96-031 accepting work and Offers of Dedication from Glenn R. Adams and Jamie C. Adams, Job 5001, Parcel 2, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Dalton, Rainey, M~nesini None None b. Resolution No. 96-032 accepting work and Offers of Dedication from Thomas E. Gingrich Living Trust, Job 5064, Parcel 3, was adopted and recording was authorized. 02 01 96 15 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Dalton, Rainey, Menesini None None Resolution No. 96-033 accepting work and Offers of Dedication from Leaning Oak Land Company, Job 4873, Parcel 1, was adopted and recording was authorized. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. Boneysteele, Hockett, Dalton, Rainey, Menesini None None The Grant of Easement Deed was accepted at a cost of $500 from Mr. David K. Madsen, et ux, Parcel 34, Pleasant Hill area, for the Pleasant Hill Relief Interceptor Project, Phase 4, DP 4985, the President of the Board of Directors and the Secretary of the District were authorized to accept and record said Deed with the Contra Costa County Recorder, and Resolution No. 96-034 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Boneysteele, Hockett, Dalton, Rainey, Menesini NOES: Members: None ABSENT: Members: None Quitclaim Deed was approved to BSFS/CASA, a California Limited Partnership, Job 5115, Alamo area, the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed, and Resolution No. 96-035 was adopted to that effect. e. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: 1. Boneysteele, Hockett, Dalton, Rainey, Menesini None None Quitclaim Deed was approved to Vera M. Long, Job 1572, Parcel 87 (Portion), Orinda area, the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed, and Resolution No. 96-036 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: g. Boneysteele, Hockett, Dalton, Rainey, Menesini None None Authorization was given for P.A. 96-2 (Danville) to be included in a future formal annexation to the District. 02 01 96 16 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Dalton, Rainey, Menesini None None a. 5. ITEMS HELD OVER FROM PREVIOUS BOARD MEETING CONSIDERATION OF BOARD ACTION ON ALLEGED BREACHES OF ORINDA- MORAGA DISPOSAL SERVICE. INC. SOLID WASTE FRANCHISE AGREEMENT AND CURE OR FAILURE TO CURE SAME Mr. Dolan, General Manager-Chief Engineer, stated that this matter was held over from the January 11, 1996 Board Meeting. The issue before the Board is the question of whether or not a material breach of the franchise agreement contract has occurred; and if so, what remedies would be appropriate. Staff suggests that there be a brief presentation and then a closed session before a final decision is made, since the Board may wish to consider litigation. Mr. Kenton L. Aim, Counsel for the District, stated that the issue with regard to possible breach of franchise is laid out in the position paper. Mr. Aim reviewed the contract provisions and procedures relating to breach of franchise and possible remedies. Mr. Aim stated that it would not be the staff recommendation that the franchise contract be terminated but that other remedies be sought because of the nearness to the end of the franchise agreement. In response to a question from Mr. Dolan concerning the outstanding obligation owed by Orinda-Moraga Disposal Service, Inc. (OMDS) to the District, Ms. Deborah Ratcliff, Controller, stated that no monies have been paid by OMDS since November 1994. Mr. Dolan, General Manager-Chief Engineer, inquired what, if any, documents were provided in accordance with the terms of the franchise agreement and the District's request for information in response to a request from OMDS for a substantial rate increase. Mr. Dan Ray, Manager of the Litigation Department and a Certified Public Accountant with the firm of Hemming Morse, Inc., reviewed the chronology of events beginning on November 29, 1995 when he first came into the case. A copy of the chronology dated February 1, 1996 was included as part of the record. Mr. Ray stated that the facts in the chronology are his best efforts to summarize documents requested and provided. Mr. Ray stated that to the best of his knowledge the facts are accurate. Discussion followed with regard to whether OMDS hired someone to assist in organizing the records and the fact that the District has never been billed for a temporary employee, the definition of a registered agent for a corporation, the actual chain of custody of the records requested and received from OMDS, and prior audits of OMDS records. Mr. Aim, Counsel for the District, questioned Mr. Ray with regard to the scope of his assignment, what records he believes are needed to perform the assignment, which of those record have and have not been provided and why, and what is needed to complete the assignment. Mr. Ray stated that he was to perform an analysis of the books and records of OMDS principally because OMDS asserted that the District's rate-setting procedures for the rates set at the beginning of 1995 were flawed and resulted in insufficient revenue, driving the business into bankruptcy. To accomplish that analysis, it is necessary to verify revenues, compare actual revenues to anticipated revenues, review expenses to see if they are in line with what was anticipated, and if they are out of line determine the reason why. Original source documents are needed to perform this analysis and to ensure that all revenues and expenditures are being charged appropriately and are being accounted for. Mr. Ray stated that he will continue to seek the supporting records. To date, Mr. Ray estimated that he has received 70 to 75 percent of the records requested. Mr. Ray stated 02 01 96 17 that he still needs supporting documents and original files for payments made to vendors and a listing of related parties. Mr. Aim, Counsel for the District, distributed a list of documents that has been lodged with the Board previously. These documents deal with the issues currently before the Board. Virtually all of these documents have been before the Board at least once and made a part of the public record. Beginning near the bottom of page two, the list includes correspondence and Court actions taken to obtain an auditor or Certified Public Accountant to evaluate the records of OMDS. This list was provided as a summary of efforts made by the District to obtain the required information and payment of fees. Mr. Richard Norris, attorney for OMDS, stated that OMDS is going through a difficult time. The company is going out of business in terms of serving the Orinda, Moraga, and Lafayette communities. Mr. Norris stated that 75 to 80 percent of the documents requested have been delivered. The District has made the allegation that somehow OMDS availing themselves of the Court is not acceptable. That was allowed under the terms of the franchise agreement and relief was allowed by the Court that was not allowed by the District. A Court Order was issued and over several weeks most of the documents have been delivered. Failure to provide the records was not an effort to deny access to records. It is the result of a business in significant transition because of loss of the franchise and key accounting personnel. Mr. Norris stated that questions have been asked about what is needed to prepare taxes. Original documents are good, but working papers were given through September 1995. There were just a couple of months where the quality of the work deteriorated. Checks and statements have been given. They will lead back to the invoices in one way or another. If OMDS have lost the invoices, they are available from the vendors. Mr. Norris stated that this is a very rough time for a very small business. Mr. Ray corrected Mr. Norris, stating that 70 to 75 percent of the documents requested were provided. Mr. Norris stated that all of the checks were given and the checks will lead to the invoices. Mr. Norris stated that he hopes the District recognizes there is a reason for the disruption in the day-to-day operations of the business. Perhaps rather than a default on delivery of the records, it is a default on maintenance of the records. The issue of access to the records is troubling. Mr. Doug Lomow, owner of OMDS, said he did not want these people in his office when he was not there. That explains why Hemming Morse was barred from access to the records when Mr. Lomow was not there. In the Court proceedings there was no mention of copying at all; however, OMDS allowed copies to be made. The fact that Mr. Lomow left and came back with documents is neither good nor bad. It just means that he went and got the documents. Of the documents that cannot be found, the bulk appear to be revenues and expenses for those companies not related to Mr. Lomow. Those invoices will be easy to get. With regard to the franchise fee and legal impound fees, Mr. Norris stated that if the rates established by the District were insufficient to meet the lawful expenses of OMDS by an amount equal to the franchise fee and legal impound fees, Mr. Lomow does not owe the District money. If it was less, the District may have a claim. If his expenses produced revenues to pay it and they were disallowed, the District has a claim. Mr. Norris thanked the Board for their patience. Mr. Norris asked the Board to put themselves in Mr. Lomow's position for a moment. This is a very difficult time. Member Rainey inquired into the $2.12/ton Household Hazardous Waste Fee collected by OMDS. That was money paid for a specific service over and above the normal rates. Mr. Norris stated that his comment is the same as for the franchise fee and the legal impound fees. If OMDS was shorted in an amount equal to $2.12 per ton, then OMDS does not owe that money. The District does. Mr. Dolan stated that this is the first he has heard that the money owing to the District depends on how much money OMDS makes. Past due amounts go back to 1993. Applying Mr. Norris' logic to the amount of franchise fee and legal impound fees, it would appear that the investigation of the profitability of the company should go back to 1993? 02 01 96 18 Mr. Norris answered no. If it is argued that the company was not profitable in 1993, that assumption would be correct but that is not the case. Mr. Dolan stated that there was an attempt to make sure the company was receiving the proper revenue requirement. Mr. Norris stated that in his view if the revenue shortfall from 1995 exceeds amounts owing to the District for any reason or obligation to the District, those two will net against each other no matter what year they came from. If the shortfall is the fault of the District's failure to set an appropriate revenue level, Mr. Lomow would be excused from the requirement to pay the fees to the District. Mr. Dolan asked Mr. Norris if that would be his view even if amounts were included in the operating revenue requirement in prior years? Mr. Norris stated that he is not contesting whether it was an obligation. The contract provides for a franchise fee; it is simply the lack of revenue to pay it. If the lack of revenue is because the District set the rates too low, Mr. Lomow and Mr. Norris believe that he is excused from paying it. If it is for some other reason, perhaps the District has a claim. President Menesini stated that if the rates were set too low and Mr. Lomow is unable to pay the franchise and legal impound fees, that is one reason to get some accurate accounting done as soon as possible and to review the necessary records. Mr. Norris agreed, stating that there is no reason for Mr. Lomow not to give the District the records. If this matter goes to Court, he will be required to get the records somehow. There is nothing in it for Mr. Lomow to hide. Mr. Aim stated that there is obviously a different view. One could argue there is a substantial reason for Mr. Lomow to delay. In one month he will be out of town and getting the records could be very difficult. There has been a substantial effort to get the records and the Board has now heard where we are in the process. President Menesini called for comments from the public. There being none, President Menesini proceeded to Item 13., Closed Session. 13. CLOSED SESSION a. INITIATION OF UTIGA TION The closed session was held to discuss initiation of litigation pursuant to Government Code Section 54956.9(c). One potential case was discussed. At 3:26 p.m., President Menesini declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(c). At 4:37 p.m., President Menesini concluded the closed session and reconvened the meeting into open session with all parties present as previously designated. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION Mr. Aim, Counsel for the District, stated that no decisions were made or votes taken that require reporting at this time. At this time, President Menesini returned to Item 5.a. 8 ARD MEETIN a. CONSIDERATION OF BOARD ACTION ON ALLEGED BREACHES OF ORINDA- MORAGA DISPOSAL SERVICE. INC. SOLID WASTE FRANCHISE AGREEMENT AND CURE OR FAILURE TO CURE SAME Mr. Dolan, General Manager-Chief Engineer, recommended that the Board defer final resolution of whether or not material breaches of franchise have taken place to provide 02 01 96 19 one further opportunity for Mr. Lomow to provide information. Mr. Dolan suggested that a special meeting be scheduled for 10:00 a.m. on Monday, February 5, 1996. It was moved by Member Rainey and seconded by Member Boneysteele that because some information has already been provided, one further opportunity be allowed for Mr. Lomow and OMDS to provide the requested information and that further consideration of Board action on alleged breaches of Orinda-Moraga Disposal Service, Inc. solid waste franchise agreement and cure or failure to cure same be deferred to a special meeting to be held at 10:00 a.m. on Monday, February 5, 1996. There being no objection, the motion was unanimously approved. In response to a question from Mr. Aim, Counsel for the District, all Board Members waived written notice of the meeting scheduled for 10:00 a.m. on Monday, February 5, 1996. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER A portion of Item 13., Closed Session, and Item 14., Report of Discussions in Closed Session, were taken out of order earlier in the agenda to accommodate interested persons in the audience. 7. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, reported that each year the District is obliged by federal law to publish the names of customers who have not been fully complying with federal and local pretreatment requirements. In a few instances the failure to comply has resulted in a violation serious enough to draw an administrative fine. In other cases, the non-compliance is more of an administrative nature, but must be published in conformity with the law. Mr. Dolan stated that a few years ago, to help keep the District's program in balance, the Source Control group initiated a program of awards to those customers who made exceptional efforts at pollution prevention. These awards are advertised as well. Mr. Dolan introduced Mr. Tim Potter, Supervising Source Control Inspector, who stated that the following industries have violated standards in 1995 resulting in assessment of fines either for flagrant violations or for a pattern of non-compliance: . . . . . . Acme Fill Corporation Apparel Cleaners Aramark Uniform Services BMW Concord Systron-Donner Corporation Tracor Aerospace Mr. Potter stated that the following had less significant violations: . . . . . . . . . Crow Canyon Radiator Laserfab, Inc. Mel & Sons, Inc. Merrihew Memorial Hospital Personal Touch Photo San Ramon Regional Medical Center Siemens Medical Systems Surgical Dynamics, Inc. Varian Associates, Inc. Mr. Dolan stated that the District's Source Control group does a very good job of keeping good relations with the people in our communities and also with ensuring compliance with regulations. 02 01 96 20 02 President Menesini reported on the Orange County source control program which was a topic of discussion at the recent California Association of Sanitation Agencies (CASA) meeting. 2) Mr. Dolan, General Manager-Chief Engineer, stated that an overview of the District's education program is being presented in response to a request from President Menesini. The District is now doing far more in the way of community outreach than ever before in the District's history. Mr. Dolan stated that he is convinced, given the federal and state mandates for pollution prevention, that the new education programs are both necessary and prudent. The District is having something of a resource problem due to the combined effect of ongoing work, proposed new programs, reduced staffing, and two long-term illnesses in the group. Mr. Dolan introduced Mr. Paul Morsen, Deputy General Manager, who provided a broad overview of the District's public education and community outreach programs. On-going public education programs include: . Pollution Prevention . Elementary and Intermediate Student Programs . 50th Anniversary Commemoration . Media Relations . Displays and Presentations Mr. Morsen stated that in addition to the District's on-going public education programs, staff support is provided for preparation of Board and Department presentations, the employee newsletter, Work Redesign information, employee benefits information, and the Wellness Program. Mr. Morsen reviewed proposed programs requiring staff time as follows: . Community Outreach focusing on a newsletter, speaker's bureau, plant tours, and video . High School Student Program . Household Hazardous Waste Facility . Water Recycling . Printshop Reconfiguration . Internet WEB Site Mr. Dolan stated that if the public information activities are to be successful once they have been set in motion, a substantial amount of staff time becomes necessary at a continuing maintenance level. Our limited staff is currently overloaded and pressure has developed due to deadlines and the need to do Quality work. Mr. Dolan stated that staff hopes to come back to the Board with a proposal for staffing changes to lower some of the pressure. President Menesini stated that currently watersheds are receiving significant attention. There are two major watersheds in the District's service area, the Alhambra watershed and the San Ramon/Walnut Creek watershed. The Environmental Alliance is beginning a Coordinated Resource Management and Planning Program in alliance with the Contra Costa Natural Resources Conservation District. Resources have been committed to this effort and might serve as a source of assistance to the District in its community outreach efforts. President Menesini stated that another source of education programs is the Friends of the San Francisco Estuary. They have 01 96 21 an excellent environmental education program and could be another resource for the District. A third possibility is the John Muir National Park Program for Overnight Studies. It may be possible to incorporate that program into the District's education program. President Menesini stated that these resources could assist the District in getting its message to the public and hopefully could help take some of the load off District staff. Mr. Dolan thanked President Menesini for the possible resources. 3) Mr. Dolan, General Manager-Chief Engineer, stated that at the end of November 1995, a Board workshop on the District's Recycled Water Program was conducted. One important element of making the Recycled Water Program work will be setting rates properly. Staff has taken Board guidance given that the workshop and produced a new draft of possible rates for consideration. Mr. Dolan introduced Associate Engineer Jim Coe who stated that a proposed rate structure has been developed which staff would then like to market to five of the larger customers before the rate schedule is finally adopted by the Board. Mr. Coe reviewed the rate considerations and the proposed rate structure options. Mr. Coe stated that the recommended rate structure option is a uniformly applied declining block rate with a surcharge to retrofit existing potable customers for recycled water with a 15-year payback. Mr. Coe reviewed the rate comparison between current and proposed rates and the savings based on annual usage. If the Board agrees, staff would present the proposed rates to five potential customers and secure a letter of intent required by the State Loan Program. The letter of intent would serve as a full disclosure document to the customers and would include detailed information on quantity, quality, reliability, schedule, multiyear price, delivery loc,ation, and retrofit costs. Staff would then return to the Board sometime late this fiscal year for a public hearing to finalize the rate structure. Mr. Dolan stated that staff proposes that rates be set on a multiyear basis so customers will know what to expect in coming years and know that they will not be faced with a big rate increase. Mr. Dolan stated that if the proposed rate structure seems acceptable, staff will proceed with discussions with potential customers. Following discussion, it was the consensus of the Board that the proposed rate structure is acceptable and that staff proceed with discussions with potential customers. 4) Mr. Dolan, General Manager-Chief Engineer, stated that the Board was provided with a memorandum detailing the resolution of the prevailing wage complaint by the Carpenters Union against Humphrey Construction, Inc. on the Headworks Project. The settlement agreement executed by Humphrey Construction, Inc. and the State Labor Commissioner's Office provides for $11,079 of monies due Humphrey Construction, Inc. to be sent by the District to the State for ultimate distribution to appropriate workers. No breakdown was provided to indicate the apportionment of these funds between underpaid worker wages and any penalty assessment. 5) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Dennis Hall, Associate Engineer, who reviewed the enhanced notification procedure to the public regarding cash deposits. Mr. Hall stated that three documents were included in the Board agenda packet. These are used to advise developers of the District standard policy with regard to security deposits. Mr. Hall reviewed the documents, their uses, and the changes proposed to make it clear that the District does not pay interest on cash deposits, but that other alternatives are available. The Board endorsed the proposed changes suggesting that the parentheses be removed and that the information be put in all capital letters, bolded and underlined. 02 01 96 22 b. 2) 6) Mr. Dolan, General Manager-Chief Engineer, stated that Member Rainey has been elected Chair of the Local Chapter of the California Special Districts Association (CSDA). To enable the District to fully support Member Rainey, and to ensure that the District stays current on consolidation and California Constitution Revision Commission issues, Mr. Dolan recommended that the District join the statewide CSDA. The Board concurred. 7) Mr. Dolan, General Manager-Chief Engineer, distributed the 1996-1997 Budget Schedule and requested Board confirmation of the Board Budget Workshops. The Board confirmed the Workshops scheduled for 2:00 p.m. on April 2, 1996 and 2:00 p.m. on May 1, 1996. 8) Mr. Dolan, General Manager-Chief Engineer, announced that Plant Operations Department Manager Charles Batts and Senior Engineer James Belcher are in negotiations with two potential suppliers of landfill gas. Both proposals are for landfill gas quantities which are generally consistent with the District's current landfill gas usage. If agreement is not reached on a contract, the District will soon cease taking landfill gas because the current supplier, Air Products, is going out of business. If the negotiations are successfully completed, this matter will be calendared for Board consideration. 9) Mr. Dolan, General Manager-Chief Engineer, announced that the 1995-1996 Operations and Maintenance (O&M) Budget contained $25,000 for leadership training for the District's current mid-managers. Considering the current workload as we move from the wet weather season into the budget and construction seasons, staff believes that the window of opportunity to provide this training has been lost for the current fiscal year. There is still an interest in this program and staff would like to hold the funds over until the next fiscal year. The Board voiced no objection. 10) Mr. Dolan, General Manager-Chief Engineer, announced that a staff document was prepared for internal use, quantifying the results of 1995 Work Redesign efforts. At the request of Members Menesini and Boneysteele, this document will be mailed to the Board for their information. 11 ) Mr. Dolan, General Manager-Chief Engineer, announced that Plant Operations Department Manager Charles Batts will be out-of-state attending an Electric Power Research Institute (EPRI) meeting next week. Expenses will be paid by EPRI. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, announced that the District has received a claim from Acme Fill Corporation that relates to the ongoing Acme litigation. Mr. Aim requested that this claim be calendared for denial at the Adjourned Regular Board Meeting scheduled for 10:00 a.m. on Monday, February 5, 1996. Mr. Aim, Counsel for the District, announced that on January 26, 1996 he and Mr. Dolan and all the principals of the Acme lawsuit met with the new Judge in the Acme litigation. Member Dalton left the meeting at the hour of 6:05 p.m. Member Rainey noted that the Board has an automatic adjournment time of 6:00 p.m. It was moved by Member Rainey and seconded by Member Boneysteele, that the adjournment time of the meeting be extended to 6:30 p.m. to allow the Board to complete necessary business. There being no objection, the motion was approved with Member Dalton being absent. 3) 0') ~ Mr. Aim, Counsel for the District, announced that a summary judgement was granted in the matter of William C. Ortland v. CCCSD, et ai, No. C95- 00255, and the action against the District has been dismissed. 01 96 3. 4. 23 SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) Member Rainey reported that the Central Contra Costa Solid Waste Authority (CCCSWA) had a luncheon celebrating the partnership between the District, Contra Costa County, and the Cities and Towns. The luncheon was held on January 25, 1996 prior to the CCCSWA Board Meeting. President Menesini stated that many District Board and staff members were recognized and given awards for their good work in the area of solid waste. Mr. Dolan, General Manager-Chief Engineer, stated that Member Rainey and Deputy General Manager Paul Morsen contributed so much to the solid waste effort. Without the driving forces of Member Rainey and Mr. Morsen over the last decade, none of the recent significant accomplishments in solid waste would have been possible. Mr. Dolan stated that Counsel for the District Kent Aim was also a significant contributor, offering excellent counsel and putting in a tremendous amount of work drafting and negotiating contracts. Member Rainey stated that the number of representatives per member agency will be considered at a future CCCSW A Board Meeting, as well as agreements relating to the District's continued role in CCCSWA when the Cities of Lafayette and Orinda and the Towns of Danville and Moraga become participating members of the Authority. 2) It was the consensus of the Board that the report of the January 18-20, 1996 California Association of Sanitation Agencies (CASA) Meeting be held over to the February 15, 1996 Board Meeting. 3) Member Rainey reported on the activities of the 50th Anniversary Open House Subcommittee. The open house has been tentatively scheduled for 5:30 p.m. to 7:30 p.m. on Thursday, September 26, 1996. The Board indicated that the date was acceptable. Member Menesini suggested that the District continue to look at holding community dedications, giving credit to the Cities in our service area where appropriate. 4) A summary report of the January 25, 1996 Sanitation and Water Agencies Meeting was distributed. 5) Member Hockett reported on the Contra Costa Special Districts Association (CSDA) election held on January 20, 1996. Member Rainey was elected Chair of the Local Chapter of CSDA, Ms. Bette Boatmun of Contra Costa Water District was elected Vice Chair, Mr. Steve Morgan of San Ramon Valley Fire Protection District was elected alternate and Mr. David Jameson of Contra Costa Mosquito and Vector Control District was elected representative to the Local Agency Formation Commission (LAFCO) for four- year terms, and Mr. Alfred Granzella of West County Wastewater District was elected to the County Treasurer Oversight Committee. 8. ENGINEERING AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A CONTRACT WITH UTILX CORPORATION TO INSTALL A SEWER BY DIRECTIONAL DRILLING FOR THE MARTINEZ DOWNTOWN TRUNK SEWER PROJECT. DP 4950 a. Mr. Dolan, General Manager-Chief Engineer, stated that drilling projects can be risky and can encounter complications. With an eye toward erring on the side of caution, the District originally designed this pipe project as a two phase project, first drilling and installing an 8-inch diameter sewer, then later increasing it to 12-inch diameter sewer. The contractor has indicated confidence with proceeding directly with a 12-inch diameter 02 01 96 24 sewer in the first phase. After considering this new information, it is proposed that the District proceed with installation of a 12-inch diameter sewer rather than the a-inch diameter sewer previously discussed with the Board. Then it will not be necessary to go back in and upsize the line. UTILX has indicated a willingness to put in the 12-inch line, resulting in an ultimate cost savings to the District of about $32,000 by elimination of the need for a second phase. It was moved by Member Boneysteele and seconded by Member Rainey, that the General Manager-Chief Engineer be authorized to execute a contract with UTILX Corporation in the amount of $79,000 for construction of a 12-inch sewer by directional drilling as part of the Martinez Downtown Trunk Sewer Project, DP 4950. There being no objection, the motion was approved with Member Dalton being absent. b. ACCEPT THE CONTRACT WORK FOR THE PLEASANT HILL RELIEF INTERCEPTOR PROJECT. PHASE 3 (DP 5031) AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION Mr. Dolan, General Manager-Chief Engineer, stated that President Menesini has suggested that a recognition ceremony for the City of Pleasant Hill be conducted in connection with the Pleasant Hill Relief Interceptor Project. Scope and timing of such an event was discussed and it was agreed that this matter be brought back for further discussion at the February 15, 1996 Board Meeting. It was moved by Member Boneysteele and seconded by Member Rainey, that the adjournment time of the meeting be extended until 6:50 p.m. to allow the Board to complete necessary business. There being no objection, the motion was approved with Member Dalton being absent. It was moved by Member Rainey and seconded by Member Boneysteele, that the contract work for construction of the Pleasant Hill Relief Interceptor Project, Phase 3 (DP 5031) be accepted and the filing of the Notice of Completion be authorized. There being no objection, the motion was approved with Member Dalton being absent. c. ADVISE THE BOARD OF THE CLOSE OUT OF THE KNOX DRIVE SEWER REPLACEMENT PROJECT (DP 4602) AND AUTHORIZE THE GENERAL MANAGER- CHIEF ENGINEER TO ALLOCATE ADDITIONAL FUNDS It was moved by Member Boneysteele and seconded by Member Rainey, that the General Manager-Chief Engineer be authorized to allocate $46,000 from the Collection System Program Contingency Account for the Knox Drive Sewer Replacement Project (DP 4602), and that the project be closed out. There being no objection, the motion was approved with Member Dalton being absent. 9. APPROVAL OF MINUTES MINUTES OF ADJOURNED REGULAR MEETING OF JANUARY 11. 1 996 a. It was moved by Member Hockett and seconded by Member Rainey, that the minutes of the Adjourned Regular Meeting of January 11, 1996 be approved as presented. There being no objection, the motion was approved with Member Dalton being absent. 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FEBRUARY 1. 1996 It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated February 1, 1996, including Self-Insurance Check Nos. 101043- 101053, Running Expense Check Nos. 94109-94523, and Sewer Construction Check Nos. 16633-16713, be approved as recommended. There being no objection, the motion was approved with Member Dalton being absent. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 02 01 96 25 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 13. CLOSED SESSION SIGNIFICANT EXPOSURE TO LITIGATION a. The closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b) was continued to February 15, 1996. b. INITIATION OF LITIGATION This item was taken out of order earlier in the agenda. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION This item was taken out of order earlier in the agenda. 15. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 6:40 p.m. to reconvene at 10:00 a.m. on Monday, February 5, 1996 for an Adjourned Regular Board Meeting. '-1'~¡~,11-~~ resident of the Board Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 02 01 96