HomeMy WebLinkAboutBOARD MINUTES 10-17-02 34 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 17, 2002 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 October 17, 2002. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . INTRODUCE COLLEEN HENRY. NEWLY HIRED SOURCE CONTROL INSPECTOR I . INTRODUCE GEORGIANA MCCLEASE. NEWLY HIRED ADMINISTRATIVE SECRET ARY . INTRODUCE GERALD (CHUCK) ORTEGA. NEWLY HIRED UTILITY WORKER Ms. Colleen Henry, Source Control Inspector I, Ms. Georgiana McClease, Administrative Secretary, and Mr. Gerald (Chuck) Ortega, Utility Worker, were introduced and welcomed to the District by President Menesini and the Board of Directors. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. RECEIVE ASSOCIATION OF METROPOLITAN SEWERAGE AGENCIES (AM SA) GOLD AWARD RECOGNIZING CENTRAL CONTRA COSTA SANITARY DISTRICT'S OUTSTANDING WASTEWATER TREATMENT EFFORTS IN ACHIEVING 100 PERCENT COMPLIANCE WITH NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT REQUIREMENTS DURING CALENDAR YEAR 2001 Mr. Charles W. Batts, General Manager, stated that the District has received the Association of Metropolitan Sewerage Agencies (AM SA) Gold Award for not having a significant permit violation for the calendar year 2001. No record is more important than the District's National Pollutant Discharge Elimination System (NPDES) permit compliance. This is the fourth consecutive year that the Plant has received the AMSA Gold Award for 100 percent compliance. Mr. Batts introduced Mr. Doug Craig, Plant Operations Division Manager, who stated that in calendar year 2001, the Plant processed 15.8 billion gallons of wastewater, produced 5,256 tons of ash, the Laboratory conducted 39,600 analyses (half for compliance and half for process control), and there were no NPDES permit violations (100 percent compliance). The AMSA award criteria are 1 to 5 violations per year for a Silver Award, zero violations per year for a Gold Award, and zero violations for five consecutive years for a Platinum Award. There are 324 AMSA agencies. In calendar year 2001, AMSA 10 17 02 35 presented 122 Silver Awards, 181 Gold Awards, and 14 Platinum Awards. In 2001, AMSA agencies had 278 permit violations, and non-AM SA members had 1,006,222 permit violations. In nine of the last ten years, the District has achieved either the Silver Award or the Gold Award. Mr. Craig stated that there are many things that can present challenges in achieving 100 percent compliance. In recent years, the District has had to address compliance challenges associated with construction impacts, mechanical breakdown of critical equipment, communication of process issues, and uncontrollable constituents. There are increasingly stringent requirements in the District's new NPDES permit. Mr. Craig expressed appreciation for the support the Board of Directors has given for facilities, and acknowledged the contributions of all District staff. Mr. Craig introduced Chemist II Mary Lou Esparza-Vignalats, Shift Supervisor Bruce Dobey, and Machinist Dean McNeely, who presented the 2001 AMSA Gold Award for 100 percent compliance to President Menesini and the Board of Directors. President Menesini and the Board of Directors acknowledged all those who helped the District achieve 100 percent compliance for the fourth consecutive year. Mr. Batts stated that the AMSA Gold Award is an outstanding team effort, and asked that that word be carried back to all employees. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF A SERVICE CONTRACT TO ROTO-ROOTER FOR PROVIDING TV INSPECTION OF SANITARY SEWERS Mr. Batts, General Manager, stated that bidding of TV inspection work as a service contract has resulted in lower overall costs and a significant reduction in paperwork. At award of the last TV inspection contract at the August 8, 2001 Board Meeting, Board Members asked several specific questions related to the District's TV inspection efforts; specifically, the number and purpose of the different TV inspection efforts, and performing the work with in-house staff in lieu of hiring contractors. Mr. Batts introduced Mr. Tad Pilecki, Principal Engineer, who stated that Mr. Tom Godsey, Associate Engineer, could not be here today as he is with his wife and new son born on Tuesday, October 15, 2002. Mr. Pilecki stated that the Sewer TV service contract was advertised on September 20 and 25, 2002, and bids were opened on October 4, 2002. There were six bids ranging from $153,840 to $338,005. The low bid was from Roto-Rooter. Mr. Pilecki showed photographs and described the sewer TV inspection equipment, camera, and operation. The District's sewer TV inspection efforts include this Sewer TV Service Contract (Design), Capital TV Inspection Contract (Planning), and Collection System Operations Division (CSOD) Maintenance Crew (Immediate Needs). The Sewer TV Service Contract (Design), before the Board for consideration today, is for intermittent sewer TV work over a three-year period. The data is used for sewer capital projects. The Capital TV Inspection Contract (Planning) is a large seven-year effort. This is a year-by-year contract. About 1 million feet of District sewer per year are televised. The data is used in the Capital Improvement Planning process to ensure that the appropriate amount is budgeted. The CSOD Maintenance Crew (Immediate Needs) effort is a continuous operations and maintenance function that deals with difficult sewers. Mr. Pilecki described the differing scopes of work of the three TV inspection efforts. The Sewer TV Service (design) effort is spread all over the District service area, usually consists of short runs, and the level of detail is less than the other efforts. It is performed by a contractor for utility coordination, design investigations, and risk management. The Capital effort is a planning effort and a much more detailed level of effort. It is a comprehensive effort to televise all District sewers to create a reference condition database. The CSOD Maintenance Crew effort uses in-house staff to televise lines in emergency situations, and for pipeline acceptance, service call follow-up, locating for repairs, and cleaning report investigation. Mr. Pilecki reviewed the Sewer TV Inspection relative costs, stating that the Capital effort averages 10 17 02 36 $1.60 per linear foot for approximately $1,000,000 annually; the Service effort averages $1.18 per linear foot for approximately $50,000 annually; and'the CSOD Maintenance Crew effort averages $1.67 per linear foot for approximately $275,000 annually. Mr. Pilecki stated that the majority of this work, contract T.V. inspections, is being done by contract rather than using in-house staff because there are many new and pending regulations focusing on asset management such as CMOM (Capacity, Management, Operations and Maintenance). The District has been proactive as have many other districts, and started a seven-year program to inspect all sewer lines. It is unclear whether the District will be required to do a continuous inspection program. Since it is unclear where the regulations are going, because of the large investment for TV inspection equipment and staffing, and because of the changing technology, staff believes that it is prudent to wait and see what efforts will be required and to proceed with a year- to-year contract at this time for the Sewer TV Inspection Capital Program. In response to questions from Member Lucey, Mr. Pilecki stated that it is recommended that the District wait until the final regulations are promulgated before considering whether to proceed with a full-scale in-house TV inspection program for capital. Discussion followed with regard to the differing cost per linear foot for various terrains and segmenting the contracts by areas, the training and ability of District staff to do this type of work, OSHA safety issues, changing technology relating to TV inspection cameras, and CSOD priorities of reduction in overflows and backlog folder work. Mr. Batts stated that findings of the TV inspection work to date will be discussed at the November 14, 2002 Board Capital Planning Workshop. Member Lucey stated that he would be interested in receiving a staff proposal at the November 14 Board Workshop for a surcharge for the Orinda area if the results of TV inspection turn out to be as he expects. It was moved by Member Nejedly and seconded by Member Hockett, that award of a service contract be authorized to Roto-Rooter, the lowest responsible bidder in the amount of $153,840, for providing TV inspection of sanitary sewers for a three-year period. Motion approved with Member Lucey voting no. Member Lucey stated that he voted no because he believes that the separate TV inspection contracts should be combined into one contract to save the District ratepayers money. 6. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, stated that at the Board Outreach Committee meeting in August, the Committee agreed that the District should produce an annual report for the 2001-2002 fiscal year. Historically the District prepared an annual report each fiscal year; however, the last District annual report was in 1996. Staff is now in the process of developing a new annual report format to reflect the goals of the District. Mr. Batts introduced Ms. Harriette Heibel, Community Affairs Manager, who stated that the purpose of the annual report is to provide an overview of District accomplishments during the past year, financial highlights, and historical perspective, and to communicate who the District is and what we do. The proposed audience will include wastewater and water agencies within California; local elected officials; related friends, partners, agencies, and associations; District employees; and the media. It is proposed that the theme build on the District's strengths, highlighting the four goal areas of full regulatory compliance, excellent customer service, responsible rates, and high performance organization. The annual report will be about 12 pages plus a cover, and will be produced in-house to the extent possible. 10 It, (. '.. "...."'." ¡~:.ß J ".,.::} 37 The content will include information about the Board of Directors, a letter or message from the General Manager, an overview of the District, highlights of major activities organized by the four goal areas, and financial and budgetary information. Ms. Heibel stated that under the goal of full regulatory compliance, topics will include the District's new National Pollutant Discharge Elimination System (NPDES) permit, the new Environmental Laboratory, pollution prevention efforts, and the pretreatment program. The goal of excellent customer service will include information on public outreach on construction projects, serving the public at the Household Hazardous Waste Collection Facility, serving customers at the Permit Counter, and the web site. Under the goal of responsible rates, finance and budgetary information, Capital Improvement Program, and cost- cutting efforts and cost-effective solutions will be presented. The goal of high performance organization will include information on the safety program, strategic planning and continuous improvement, training, and how we measure ourselves. Ms. Heibel stated that it is proposed that the annual report be discussed in more detail with the Board Outreach Committee on October 24, brought to the full Board for review at the November 21 Board Meeting, and mailed out in early December. Discussion followed with regard to the cost per capita of previous annual reports compared to the proposed annual report, the need for consistency in producing an annual report on an ongoing basis, showcasing the mission of the District to protect public health and the environment and the costs to carry out that mission, highlighting the fact that the District is a national award-winning agency, and using the annual report as an educational tool and marketing piece. When the final report is presented to the Board, Member Lucey requested information on the costs including staff time. Mr. Batts stated that the report will be low key, but all the work done by Ms. Heibel and her staff is first rate. Mr. Batts noted that in addition to the annual report, the District produces the Comprehensive Annual Financial Report. 2) Mr. Batts, General Manager, stated that at the last Board Meeting staff briefed the Board on the proposed development of the IT Corporation Baker site located just north of the District treatment plant. A vehicle storage and maintenance yard is proposed by Conco Cement, and a rail storage and transfer yard is being proposed by U.S. Development. On October 11, 2002, staff and the District's geotechnical consultant Heinz Berger of URS Corporation, met with the two developers and their engineering consultants to discuss the District's concerns about the impact of such development and the impacts of traffic on District facilities such as the outfall pipeline. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that no conclusions were reached at the October 11 meeting with the developers but the District's concerns about the proposals were presented and more information was received about the proposals. Mr. Swanson stated that the District is concerned about impacts on major District pipelines from construction damage, settlement, differential settlement, and horizontal displacement. Additional concerns relate to access issues. Access to the IT Corporation Baker site is currently via an existing gravel road on 20- to 34-foot wide easements across District-owned property. It is estimated that 130 truck per day will access Conco Cement and 50 to 80 trucks per day will access U.S. Development in addition to personal vehicles. Discussion followed with regard to easement rights and the prohibition against substantially changing the use of an easement. Member Boneysteele indicated that the Board should view the site prior to making any decisions. 10 17 02 38 10 3) 4) Mr. Swanson stated that Conco Cement is aware of the District pipelines and has agreed that its buildings will be at least 80 feet away from the M-2 force mains; there will be no increase in loading on the pipelines; storage and parking over the pipelines or within 50 to 100 feet of the pipelines will be prohibited; and vehicle crossings will be engineered. Conco Cement needs District approval of building and pipe crossing designs; a water line easement across the District's Lagiss property, improvements to the access road across District property; relocation of District access easements on their property; sewer service; and recycled water. Mr. Swanson stated that U.S. Development does not have any specific commodity in mind right now. They have submitted a pre-application to Contra Costa County with some alternatives but the ethanol storage plan has been withdrawn for now. U.S. Development is also aware of the District pipelines and set-back requirements; they have some ideas for rail crossings of the District outfall, one option is to use soil cement "piers" with concrete slab that spans the outfall. U.S. Development needs improvements to the access road across District property; District approval of the crossing design and storage locations; and perhaps recycled water. Discussion followed in which Member Lucey questioned why the District is pursuing this. To have 200 plus cement trucks a day going over major District pipelines is a significant problem. If there is a problem, the District will be cited. Can the District just say no? Mr. Batts stated that staff would like to say no but the companies have economic development rights to the parcels. In response to questions from Member Hockett, Mr. Swanson stated that he believes there are ways this could be engineered to protect the integrity of the District pipelines. Being mindful of Member Lucey's comments, it takes just one incident for there to be a significant problem. Mr. Swanson stated that he has a personal interest in protecting the District pipelines in this areas as he has worked on projects on these facilities through the years. As indicated by the General Manager, the District's concerns are first to protect the District pipelines and secondly access. Mr. Kenton L. Aim, Counsel for the District, stated that the District could fight this development and it mayor may not be successful; the District could acquiesce and let other decision makers go forward; or the District could negotiate with the developers because they need several things from the District. There are a lot of things that must be worked out, but most of those decisions will be made before the Planning Commission. The District must decide what position to take before the Planning Commission. Mr. Batts stated that the Secretary of the District will set up a tour of the IT Corporation Baker site for interested Board Members. Mr. Batts, General Manager, announced that the District is advertising the Steam Turbine System Upgrade Project, DP 6158. The project will provide a complete overhaul of the steam turbines by replacing most of the steam path components subject to wear. It will upgrade and rehabilitate all of the ancillary support systems and provide state of the art controls. Because of the importance of the steam turbines to the treatment process, the refurbishment is a high priority. The engineer's estimate for the construction portion of the project is $1 million. The total project budget is $2.45 million. Mr. Batts, General Manager, stated that as discussed with the Board on previous occasions, there is an industry-wide concern for developing future leaders and staff for the wastewater utility industry. In response to this concern, various professional organizations instituted the Water and 17 1"'," (-'. U F' ...'.'.' ij ~.! 39 Wastewater Leadership Center at the University of North Carolina with a management curriculum focused on management skills and the challenges facing our industry. The Center opened in March 2001. A brochure describing the 1 2-day residential program was distributed. The program is intense and demanding, targeted to the utility industry. The cost is approximately $12,000 per attendee. Mr. Batts stated that with the Board's concurrence he would like to discuss with the managers sending two managers this year and in future years to this program. Mr. Batts proposed that the cost of this program be covered by the unused portion of the Managers' Education Reimbursement Account. This would require the approval of the Board and the permission of the Management Group. A review of this account for the past three years indicates that there is usually enough unused funds within the existing budget to cover the cost of two attendees. The proposal presented at this time would be budget neutral. Mr. Batts stated that if more managers were to attend, additional funds would have to be budgeted. Mr. Batts stated that he has contacted individuals from Fairfield Suisun Sewer District, South Bayside Authority District, and Delta Diablo Sanitation District who have attended the program and they have indicated they found that it was very beneficial. Member Hockett endorsed the proposal, stating that the more educational opportunities available the better. Member Nejedly indicated that he would like to take some time to think about it. President Menesini stated that discussion with the managers is appropriate, stressing that the most important thing is how this meets with the District's objectives for the future and the cost effectiveness of such a training program. Member Boneysteele asked if someone who has attended the program could be available to present information to the Board. Member Hockett stated that the District should take advantage of this qualified program backed by the industry. 5) Mr. Batts, General Manager, announced that the Solar cogeneration turbine, which produces most of the electricity for the treatment plant failed at 6:00 p.m. on Monday, October 14, 2002. A Solar maintenance technician has inspected the unit, determined that vane failure led to the shutdown, and that the unit needed to be rebuilt. The turbine is currently on a truck to Houston, Texas. A rebuilt unit will be returned to the District in two to three weeks. The rebuild costs of the turbine are covered under the District's maintenance contract with Solar; however, the failure will cost the District between $60,000 to $90,000 for purchase of electricity and demand charges from PG&E. The Board may recall a similar failure last Spring, making this the second turbine to fail this year. Staff has begun discussions with Solar Turbines regarding the quality control of their rebuilt turbines, and the cost of installing a new turbine that might be more reliable. 6) Mr. Batts, General Manager, distributed the Household Hazardous Waste Collection Facility (HHWCF) 2001-2002 Annual Report. At the next Board Meeting, staff will present a summary of the report and answer any questions that Board Members may have on its content. The HHWCF is celebrating five years of service next week. Staff is planning to hang a banner commemorating the event and to provide customers with a token in recognition of the five years of service. A celebration with our agency partners is being planned as well and will be discussed at the Board Outreach Committee meeting on October 24, 2002. Since this concerns the HHWCF, the Board Household Hazardous Waste Committee Members 10 17 02 40 b. might also like to attend the October 24 Outreach Committee meeting. The agenda for the October 24 Outreach Committee meeting was distributed. 7) Mr. Batts, General Manager, stated that as the Board is aware, Contra Costa County had requested that the District operate Contra Costa County Sanitation District No.6 (Stonehurst) through September 2002 until they could contract for a new operator. The contractor who previously operated the facility had resigned and the County was unable to secure a state- licensed operator. The District took over operations July 1, 2002, under an agreement with the County. The facility had not met its Waste Discharge Permit requirements in over a year. By the end of July, District staff had the facility in compliance, and it has been in compliance ever since. The County has contracted with Phillip Brothers, a small operations firm from Napa, to operate the facility effective October 1, 2002. Mr. Batts distributed the thank you letter received from the Contra Costa County Public Works Department, acknowledging the help of the District Operations section, particularly Shift Supervisor George Fowler, Plant Operations Superintendent Ted Smith, and Instrument Shop Supervisor Jim Kneis. 8) Mr. Batts, General Manager, distributed the letter received from the Institute of International Education thanking the District for hosting the Egyptian study tour delegation on September 18, 2002. 9) Mr. Batts, General Manager, announced that on Friday, October 18, 2002, the District will host a thank-you lunch for the Master Gardeners and the 16 stores that have participated in the District's Integrated Pest Management (lPM) Partnership Program. President Menesini will be attending the lunch and any other Board Members who are interested are welcome. The event is scheduled for tomorrow from 11 :30 a.m. to 1 :30 p.m. in the District's Multipurpose Room. 10) Mr. Batts, General Manager, reported that at the recent Water Environment Federation Technical Conference, Capital Projects Division Manager Bill Brennan met with representatives of vendors that manufacture clarifier mechanisms relative to the District's patented Seismic Protection System for Secondary Clarifier Feedwells. Mr. Batts distributed the sales literature prepared by Senior Engineer Ba Than and produced in-house. The manufacturers contacted were WesTech, Ondeo Degrement, EIMCO, and HiTech. Mr. Brennan will send a follow up letter to see if there is any interest. 11 ) Mr. Batts, General Manager, reported that on October 9 and 20, 2002, the Regional Water Quality Control Board (RWQCB) conducted its annual Level B inspection of the District treatment facilities. Mr. Ray Balcum was the inspector and he spent the first day touring the plant, and the following day reviewing Maintenance records and Laboratory records and procedures. Based on Mr. Balcum's comments at the conclusion of the inspection, it appears that he was impressed with both the operation and maintenance of the plant, and that he will have a few comments and recommendations for the District's consideration. COUNSEL FOR THE DISTRICT 1 ) 10 Mr. Kenton L. Aim, Counsel for the District, announced that unless the Board objects he will be attending the Association of Metropolitan Sewerage Agencies/American Water Works Association (AMSA/AWWA) Attorneys Meeting in November in Denver, Colorado, so he will miss a Board Meeting. Mr. Aim stated that he has attended the AMSA/AWWA Attorneys Meetings in the past and found them to be superior. Mr. Aim stated that if this is acceptable to the Board, he would intend to split the cost for the conference between the District and his firm. The Board unanimously concurred. Member Lucey requested that Mr. Aim bring back tapes of the 17 ()2 41 session to share with interested Board Members and staff again this year if they are available. Mr. Aim indicated that he would. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) Member Boneysteele thanked staff for their assistance in duplicating and distributing the memorial card from former District Counsel's John J. Carniato's memorial service. 2) President Menesini announced that the East Bay Regional Park District will hold a dedication of the Waterbird Regional Preserve at AI McNabney Marsh in Martinez at 11 :00 a.m. on Saturday, November 2, 2002. The Board and staff are invited to attend. BREAK At 4:06 p.m., President Menesini declared a recess, reconvening at the hour of 4: 17 p.m. with all parties present as previously designated. 7. TREATMENT PLANT a. ADOPT A RESOLUTION: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE SOURCE CONTRACT FOR THE STEAM TURBINE SYSTEM UPGRADES PROJECT. DP 6158. WITH DRESSER-RAND FOR AN AMOUNT NOT TO EXCEED $200.000 Mr. Batts, General Manager, stated that as announced earlier in the meeting, the project that will refurbish both steam aeration turbines will be advertised for bid. At the June 6, 2002 Board Meeting, sole source prepurchase of the parts required for the turbines was authorized from Dresser-Rand, the original equipment manufacturer for Terry Turbine. Dresser-Rand has unique product knowledge specific to Terry Turbine. Having the parts installed by Dresser-Rand will provide a more enforceable warranty, and will allow the District to better control the turbine upgrade project. Mr. Batts introduced Mr. Craig Mizutani, Associate Engineer, who stated that the 2,500 horsepower steam-driven turbines use waste heat steam to produce aeration air. They have been in continuous operation since 1975, and have provided reliable service until last winter. The turbines failed last winter and Dresser-Rand, of Benicia, responded quickly to restore the turbines and they have stood behind their work. Inspection of the turbines revealed worn parts. A turbine refurbishment project including piping and structural modifications and a control system upgrade was begun. The Board authorized sole source prepurchase of turbine parts from Dresser-Rand on June 5, 2002, and the possibility of sole sourcing installation by Dresser-Rand was also discussed at that time. Mr. Mizutani stated that the turbines are large, fast, and complex. Dresser-Rand is the only local authorized factory representative for Terry Turbine and performed well on the two turbine repairs last winter. Dresser-Rand provides the unique knowledge and expertise to install this proprietary equipment and will guarantee the overall performance of the turbine system. Mr. Mizutani reviewed the costs for this project, including the recommended sole source contract not to exceed $200,000 with Dresser-Rand, and the other turbine-related work totaling $1 million to be performed by a general contractor. Following discussion, it was moved by Member Nejedly and seconded by Member Boneysteele, that Resolution No. 2002-074 be adopted, finding that pursuant to the Public Contracts Code and District Purchasing Standard S-013, entering into a contract with Dresser-Rand is required to provide the District with reliable steam turbines, and that the public interest is best served by utilizing the unique technology that Dresser-Rand, the authorized factory representative of the District's two existing Terry Turbines, has developed to upgrade these specific machines; and that the Board of Directors further 10 17 02 42 finds that under the circumstances Dresser-Rand is the only authorized factory representative available for installing the Terry Turbine replacement equipment, that it is in the best interest of the District to proceed with a sole source contract with Dresser- Rand, and that the General Manager be authorized to execute a sole source contract with Dresser-Rand in an amount not to exceed $200,000. The motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Boneysteele, Hockett, Lucey, Menesini None None 8. HUMAN RESOURCES a. ADOPT RESOLUTION APPOINTING DIANE WAGNER TO THE POSITION OF PURCHASING AND MATERIALS MANAGER. M-35 ($6.677-$8.115), EFFECTIVE OCTOBER 28. 2002 Mr. Batts, General Manager, stated that when the Purchasing and Materials Manager position became vacant earlier this year, an extensive recruitment was conducted, and an outstanding candidate was selected. Ms. Diane Wagner has an extensive background in Purchasing and Materials Services, and experience in working at a wastewater treatment facility. It was moved by Member Nejedly and seconded by Member Hockett, that Resolution No. 2002-075 be adopted, appointing Ms. Diane Wagner to the position of Purchasing and Materials Manager, M-35 ($6,677-$8,115), effective October 28, 2002. The motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini None None On behalf of the Board of Directors, President Menesini extended apprecialion to Mr. Randall Musgraves, Director of Operations, for his efforts in overseeing the Purchasing Section during this recruitment. 9. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 19. 2002 b. MINUTES OF OCTOBER 3. 2002 It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of September 19, 2002 and the minutes of October 3, 2002, be approved as presented. There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED OCTOBER 17. 2002 Notes were distributed from the October 14, 2002 Budget and Finance Committee meeting at which the Expenditure List dated October 17, 2002 was reviewed. It was moved by Member Boneysteele and seconded by Member Hockett, that the Expenditure List dated October 17, 2002, including Self Insurance Check Nos. 101933- 101941, Running Expense Check Nos. 140924-141284, Sewer Construction Check Nos. 24969-25014, Payroll Manual Check Nos. 48874-48877, and Payroll Regular Check Nos. 10 17 Of. 6). h::J 43 54251-54279, be approved as recommended. There being no objection, the motion was unanimously approved. 11. BUDGET AND FINANCE a. RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30. 2002 Ms. Deborah Ratcliff, Controller, stated that the firm of Hood and Strong has completed the audit of the District Financial Statements for the Fiscal Year 2001-2002. The audited financial statements were reviewed in detail with the Board Budget and Finance Committee on September 30, 2002. The Board Budget and Finance Committee recommended two minor changes to the Note Section of the financials and those have been imbedded in the documents now being presented to the full Board. Ms. Ratcliff reported that the District received an unqualified opinion, basically a clean audit with no management letter. Ms. Ratcliff noted that this year the auditors reviewed the District's investment returns. This is done once every four years as required by the District's Investment Policy. Ms. Ratcliff reviewed the audited financial results, stating that 2001-2002 actual Running Expense Fund total revenue was $40,395,000 compared to budgeted revenue of $40,992,000 resulting in an unfavorable variance of $597,000 or 1.5 percent. Actual Running Expense Fund total expenses were $37,594,000 compared to budgeted expenses of $40,209,000 resulting in a favorable variance of 6.5 percent. The Running Expense Fund balance at June 30, 2002 was $6,172,000. Ms. Ratcliff reported that 2001-2002 Sewer Construction Fund total revenues of $16,992,000 compared to budgeted revenues of $20,577,000 were $3,585,000 less than budget. Sewer Construction Fund actual total expenditures of $21,742,000 compared to budgeted revenues of $28,578,000 were $6,836,000 less than budget. Sewer Construction Funds available at June 30, 2002 were $33,327,000 plus 2002 bond financing of $15,121,000 resulting in total Sewer Construction Funds available at June 30, 2002 of $48,448,000. This is the result of a concerted effort on the part of staff to defer expenditures to try to minimize the deficit. Some projects were deferred, several came in under budget, and some were completed early. The result, was a $ 5 million cut into Sewer Construction Fund reserves rather than the $8 million budgeted cut in reserves. Ms. Ratcliff noted that the revenue and expense numbers presented do not include $10,922,000 of reimbursed costs for the Dougherty Tunnel and Trunk Sewer Project. Ms. Ratcliff stated that on October 14, 2002, a Request for Proposals (RFP) was mailed to 18 audit firms. One response has been received already. Staff will analyze the responses and ask the Board Budget and Finance Committee to review the analysis and recommend selection of an audit firm for 2002-2003 to the full Board for consideration. Following discussion, President Menesini declared that the Audited Financial Statements for the Fiscal Year ended June 30, 2002 were duly received. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 14. CLOSED SESSION PERSONNEL MATTERS a. The closed session was held to discuss personnel matters pursuant to Government Code Section 54957 - Public Employee Discipline/Dismissal/Release. 10 17 02 44 b. INITIATION OF LITIGATION 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 is to be discussed. At 4:41 p.m., President Menesini declared the closed session as noted above to discuss personnel matters pursuant to Government Code Section 54957 and anticipated litigation pursuant to Government Code Section 54956.9(c). At 5:48 p.m., President Menesini concluded the closed session and reconvened the meeting into open session. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. 16. ADJOURNMENT There being no further business to come before the Board, President adjourned the meeting at the hour of 5:50 p.m. ~ahO ~l1ß-£~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 10 17 06) , ¡;:',