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HomeMy WebLinkAboutBOARD MINUTES 07-11-02 211 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 11, 2002 The District Board of the Central Contra Costa Sanitary District convened in an adjourned 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 July 11, 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 . RECOGNIZE MELODY LABELLA ON HER PROMOTION TO STAFF ENGINEER . RECOGNIZE MIKE SILVA ON HIS PROMOTION TO MAINTENANCE CREW LEADER . INTRODUCE NANCY KELLY. NEWLY HIRED STAFF ENGINEER . INTRODUCE DANA LAWSON. NEWLY HIRED STAFF ENGINEER Ms. Melody LaBella, Staff Engineer, and Mr. Mike Silva, Maintenance Crew Leader, were congratulated on their recent promotions. Ms. Nancy Kelly and Ms. Dana Lawson, Staff Engineers, were introduced and welcomed to the District by President Menesini and the Board of Directors. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. ACKNOWLEDGE RECEIPT OF U.S. PATENT NO. 6.343.698 DATED FEBRUARY 5. 2002 FOR A SEISMIC PROTECTION SYSTEM FOR A CLARIFIER IN A WASTEWATER TREATMENT SYSTEM - BA T. THAN. ANN E. FARRELL. GARY A. ARON. WILLIAM E. BRENNAN. KEVIN B. MONROE. KENNETH S. CLARK. MUNAWAR HUSAIN Mr. Charles W. Batts, General Manager, stated that he is pleased to announce that the District has received the patent for the Seismic Protection System for Clarifier Feedwells from the United States Patent and Trademark Office. As part of the Treatment Plant Seismic Project, staff designed a new method to protect the secondary clarifier from a wave load generated by an earthquake. Director of Engineering Ann E. Farrell, Capital Projects Division Manager William E. Brennan, Senior Engineer Ba T. Than, Associate Engineer Munawar Husain, and Contract Administrator Kenneth S. Clark worked on this design with the District's consultants. As previously discussed with the Board, the District is licensing the design to Fairfield Suisun Sewer District, and the Santa Clara Water District has also expressed interest in using it. 07 11 02 212 Mr. Ba. T. Than, Senior Engineer, presented U.S. Patent No. 6,343,698 and the commemorative plaque to President Menesini and the Board of Directors. President Menesini and the Board of Directors recognized and commended staff for this innovative achievement. It was noted that former District employee Ron Klimczak participated in this project. The Board's appreciation will also be expressed to Mr. Klimczak and he will receive a copy of the patent. 4. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Lucey, that the Consent Calendar, consisting of Items a. through h., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. The General Manager was authorized to execute a license agreement with East Bay Municipal Utility District for the Lafayette Sewer Renovation Project, Phase 3B, DP 5611. a. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: b. Hockett, Lucey, Nejedly, Boneysteele, Menesini None None The contract work for the Lafayette Sewer Renovation Project, Phase 3A, DP 5607, was accepted and the filing of the Notice of Completion was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None Formation of a contractual assessment district consisting of seven properties on Wayland Lane and Via Serena in Alamo was authorized; Resolution No. 2002-047, a resolution of intention to create Wayland Lane Contractual Assessment District (CAD) No. 2002-3 for the purpose of installing sewer improvements, was adopted; Resolution No. 2002-048 was adopted, approving the boundary of the assessment district; and Resolution No. 2002-049 was adopted, requesting consent from Contra Costa County for CCCSD to conduct proceedings for the Wayland Lane CAD No. 2002-3. c. Motion unanimously approved on the following vote: 07 11 AYES: Members: NOES: Members: ABSENT: Members: d. Hockett, Lucey, Nejedly, Boneysteele, Menesini None None Formation of a contractual assessment district consisting of eight properties on Arbor Lane and Bernie Lane in Alamo was authorized; Resolution No. 2002-050, a resolution of intention to create Arbor Lane Contractual Assessment District (CAD) No. 2002-4 for the purpose of installing sewer improvements, was adopted; Resolution No. 2002-051 was adopted, 02 213 approving the boundary of the assessment district; and Resolution No. 2002-052 was adopted, requesting consent from Contra Costa County for CCCSD to conduct proceedings for the Arbor Lane CAD No. 2002-4. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None Formation of a contractual assessment district consisting of seven properties on La Sonoma Way in Alamo was authorized; Resolution No. 2002-053, a resolution of intention to create La Sonoma Way Contractual Assessment District (CAD) No. 2002-5 for the purpose of installing sewer improvements, was adopted; Resolution No. 2002-054 was adopted, approving the boundary of the assessment district; and Resolution No. 2002-055 was adopted, requesting consent from Contra Costa County for CCCSD to conduct proceedings for the La Sonoma Way CAD No. 2002-5. e. Motion unanimously approved on the following vote: g. AYES: Members: NOES: Members: ABSENT: Members: f. Hockett, Lucey, Nejedly, Boneysteele, Menesini None None The Board was advised of the close out of the Ash Handling Improvements Project, DP 7186, and the return of $1 ,482 to the Sewer Construction Fund. This item was presented for the Board's information. No action was taken. 1 Resolution No. 2002-05« was adopted, confirming publication of District Ordinance No. 221, Amendment to Chapter 6.38 Modifying the Central Contra Costa Sanitary District Code Regarding Recycled Water Rate Structure. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: h. Hockett, Lucey, Nejedly, Boneysteele, Menesini None None Medical Leave of Absence without Pay was authorized through September 30, 2002 for Felix Espinosa, Utility Worker. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None 07 11 02 214 5. HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTION OF AN ORDINANCE REVISING TITLE 2. CHAPTER 2.08. AND RELATED REFERENCES. PERTAINING TO THE POSITION OF GENERAL MANAGER OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT At 2: 13 p.m., President Menesini opened the public hearing to receive public comment on proposed revisions to Title 2, Chapter 2.08, and related references, of the Central Contra Costa Sanitary District Code pertaining to the position of General Manager. There being no comments, the public hearing was closed. In response to questions from Member Boneysteele, Ms. Joyce E. Murphy, Secretary of the District, stated that as part of the recruitment process when the former General Manager-Chief Engineer retired, the title, duties, and requirements for the position were updated to reflect an emphasis on the general management functions of the position. The proposed ordinance revises District Code Title 2, Chapter 2.08, and related references pertaining to the position of General Manager, revising the appointment, qualifications, and duties to reflect previous actions taken by the Board, incorporating delegation of authority to the General Manager or his designee, and replacing the title of General Manager-Chief Engineer throughout the District Code with the title General Manager. Ms. Murphy stated that if the Board adopts the proposed Ordinance, the delegation of authority from the General Manager to his assistants, including delegation of authority for approval of plans and drawings, specifications and descriptions for work upon sewers in the District, will be formalized. Currently the job classification descriptions for the Director of Engineering and other Engineering Department positions contain that responsibility . It was moved by Member Nejedly and seconded by Member Hockett, that Ordinance No. 223 be adopted, revising District Code Title 2, Chapter 2.08, and related references, pertaining to the position of General Manager of the Central Contra Costa Sanitary District. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini None None 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 7. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO N. E. CARLSON CONSTRUCTION. INC. FOR THE HEADWORKS BYPASSING IMPROVEMENTS. DP 7203 Following explanation by Mr. Batts, General Manager, it was moved by Member Hockett and seconded by Member Lucey, that award of a construction contract in the amount of $229,749 for the construction of the Headworks Bypassing Improvements, DP 7203, be authorized to N. E. Carlson Construction, Inc., the lowest responsible bidder. There being no objection, the motion was unanimously approved. 8. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who reported that work is proceeding to install bypass pipes inside the Dougherty Tunnel. About 300 feet of pipe has been 07 11 02 215 installed. That work should be completed by the end of August. Work is proceeding on the structures at the east and west ends of the tunnel. Eight additional customer contacts have been received, four on the San Ramon Pumping Station Project and four on the San Ramon Force Main Project, bringing the total number of customer contacts to 78. Of those, 48 have been complaints, 28 have been requests for information, and 2 have been compliments. Mr. Brennan and the Board discussed the eight additional public contacts. With regard to the San Ramon Force Main Project, Mr. Brennan reported that the District received the Right of Entry from the County on July 3, 2002, for the portion north of Bollinger Canyon. A revised encroachment permit was received on July 10, 2002. Mr. Brennan described the work currently underway and stated that there is a constraint in the contract with contractor that requires that they finish the work around the three schools by August 23, 2002. School begins August 27, 2002. The contractor, Mountain Cascade, has been cooperative and is doing their best to make that date. If Mountain Cascade is not able to finish, the District will work with the schools to make allowances for the start of school. Mr. Brennan noted that it is still possible that work will be done in time but the schedule is very tight due to the delays in securing the Right of Entry. 2) Mr. Batts, General Manager, stated that the initial term of the Acme Landfill Gas (now Bulldog Gas and Power) agreement was completed on June 30, 2002, and has automatically been renewed for one year with the option to terminate with 90 days notice. A new agreement is currently being negotiated with Acme to provide better pricing of the landfill gas and to extend the term of the contract. Mr. Batts introduced Mr. Joseph Pomroy, Associate Engineer, who is picking up many of the duties previously performed by Mr. Jim Belcher, who recently retired. Mr. Pomroy reported that in fiscal year 2001-2002, the District landfill gas purchases totaled $710,000, and natural gas purchases totaled $3,050,000 with savings of $740,000 in avoided natural gas purchases because of the cap on landfill gas prices. The landfill gas contract initial term expired on June 30, 2002. The contract is renewable in one-year increments. Ninety-day written notice is required for cancellation. Under the current contract, the price of landfill gas is 50 percent of the natural gas price with a cap of $4.00 per decatherm and a floor of $3.50 per decatherm. This very narrow range provided the District with a good hedge against high natural gas prices last year. In response to questions from Member Lucey, Mr. Pomroy stated the natural gas price for the month of July is approximately $5.80 per decatherm. Using a graph, Mr. Pomroy reviewed the gas prices for fiscal year 2002- 2003, noting that the current landfill gas price terms are favorable for the District until November 1, 2002. Then the differential narrows and the landfill gas price starts to approach the breakeven point for the District. Overall for fiscal year, the savings would be about 18 percent off the natural gas price. Mr. Pomroy stated that at the August 1, 2002 Board Meeting, staff will recommend that the District consider giving the 90-day notification of cancellation of the current landfill gas contract. Staff has met with Acme representatives and received a proposal from Acme. Acme proposes to change the price structure from the current 50 percent discount to a sliding scale, giving Acme downside price protection. Using the terms proposed by Acme, the District would receive about a 10 percent discount for the full fiscal year compared to 18 percent under the current contract. In addition, Acme would like the District to take more landfill gas. Mr. Pomroy stated that the District will want upside price protection, stable prices with a discount, and a longer contract term may be desirable. 07 11 02 216 07 11 Member Lucey stated Acme has no other customers. It will cost them more to flare the landfill gas. The District should ask for a 50 percent discount. Member Lucey stated that in his opinion, the District must have a floor of half the price of natural gas. Member Lucey stated that the term of the agreement is not material, but the agreement must be cost effective for the District. Mr. Batts stated that is the issue staff is raising with the Board today, calendaring an item at the August 1, 2002 Board Meeting to give 90-day notice of cancellation of the contract to Acme. Mr. James M. Kelly, Director of Operations, stated that last year was an unusual natural gas price year, as prices were above $7 per decatherm most of last year. It was only recently that the natural gas prices began to slide so August 1 is an appropriate time to consider canceling the contract. President Menesini thanked Mr. Pomroy for the update. 3) Mr. Batts, General Manager, announced that the District is advertising for bids for the North Plant Operations Administration Building Roof Refurbishment Project, DP 6166. The engineer's estimate for the work is $30,000. 4) Mr. Batts, General Manager, announced that the District recently received the result of a pretreatment audit done by Regional Water Quality Control Board (RWQCB) staff earlier this year. In general the RWQCB staff was complimentary of the District's pretreatment program. However, there were three items in the report that require response by the District. First, the District must complete a legal authority review checklist which correlates the federal pretreatment program standards to the District's Source Control ordinance. Staff has initiated this review and is working with District Counsel's staff. Staff does not anticipate there will be a need to make changes to the Source Control ordinance based on the check list. Second, the District must complete a technical review of the local discharge limits to consider any modified discharge limits resulting from the District's June 2001 National Pollutant Discharge Elimination System (NPDES) permit. Third, the RWQCB staff found several cases where the signatures on Industrial User (lU) permits were dated after the effective dates of the permits. The District's IU permits contain a condition that automatically extends the permit requirements beyond the expiration date to ensure that all permitted discharging IU's are regulated under a current, unexpired permit. There were several permits issued in 2001 when the Source Control Section processed a permit renewal after the expiration date of the previous permit. The RWQCB audit report requires the District to review the permitting process for Industrial Users to ensure that the effective dates of the permits coincide with the authorizing signature dates. 5) Mr. Batts, General Manager, reported that the District also received a letter from the Regional Water Quality Control Board (RWQCB) containing comments based on their review of the District's Pollution Prevention Report for 2001. This report and the subsequent review are conditions of the District's new National Pollutant Discharge Elimination System (NPDES) permit. The RWQCB comments were very positive and commended the District on our pollution prevention efforts, particularly the Household Hazardous Waste Collection Facility, the Integrated Pest Management (lPM) program, and the District's school outreach programs. The RWQCB has become very interested in measuring the effectiveness of pollution prevention efforts and is looking for measured changes in behavior to verify that the District's pollution prevention efforts are having an impact. Staff will be preparing a response to the RWQCB comments, including the recommendation that some of the RWQCB requests would be better 02 b. c. 217 addressed from a regional perspective through the Bay Area Clean Water Agencies (BACWA). This letter and other recent correspondence from the RWQCB indicate the growing tendency of the RWQCB to regulate by letter and expand demands on publicly owned treatment works (POTW's) beyond NPDES permit provisions and statutory requirements. Member Lucey requested that the RWQCB comments and the District's draft response be forwarded to he and Member Hockett, the Household Hazardous Waste Committee. Member Hockett stated that this is an opportunity for the District to take a leadership role, and to provide input and a sense of direction. Mr. Batts stated that he will provide the Household Hazardous Waste Committee with copies of the RWQCB comments and the District's draft response. 6) Mr. Batts, General Manager, announced that the District, in partnership with Palo Alto Regional Water Quality Control Plant and the South Bayside Systems Authority, received the Water Environment Federation's 2002 Public Education Award for the Sewer Science Wastewater Laboratory Program for High School Students. The award will be presented in September at the annual Water Environment Federation Technical Conference. 7) Mr. Batts, General Manager, stated that Philip Services Corporation provides hazardous waste disposal and temporary staffing services by contract to the Household Hazardous Waste Collection Facility. That contract will expire in September 2002. Last month the District requested proposals to provide hazardous waste disposal and temporary staff services for a three-year period through September 2005. On June 28, 2002, the District received proposals from Philip Services Corporation, Safety-Kleen, MSE Environmental, ROMIC, Pollution Control Industries, and ONYX. Initial review indicates that the proposed disposal costs range from $279,000 to $612,000. The proposals are currently being evaluated by staff. A short list will be developed and the short list of contractors will be interviewed. A review of the proposals and a recommendation will be made to the Board Household Hazardous Waste Committee on August 6, prior to presentation to the full Board for consideration. 8) Mr. Batts, General Manager, announced that the District is advertising for bids for the Manzanita Creek Crossing Repair Project. This project will modify, strengthen, and paint the creek crossing sewer at Manzanita Drive in Orinda. The engineer's estimate is $90,000. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, provided an update on the status of amendments to the Mandatory Minimum Penalty bill being pursued by the California Association of Sanitary Agencies (CASA). The bill got out of the Senate with some amendments and now must go back to the Assembly for acceptance. It is expected that the amendments will be acceptable to the Assembly. The amendments create some very limited exceptions to the Mandatory Minimum Penalty bill. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, distributed a memorandum from the Contra Costa County Elections Division clarifying the word limit and estimated costs for Board of Directors' candidate statements. Candidate statements may contain up to 400 words, but the font size may be reduced to a font smaller than 10 point to ensure that each candidate 07 11 02 218 d. statement will be printed on one page. All candidate statements for the District Board will be the same font size. 2) Ms. Murphy, Secretary of the District, announced that the next Sanitation and Water Agencies meeting is scheduled for July 25, 2002. Copies of the agenda were distributed to the Board. BOARD MEMBERS 1 ) President Menesini reviewed and distributed minutes and handouts from the June 27, 2002 Outreach Committee meeting at which topics of discussion included the January-March Community Outreach Report, 2002 Pollution Prevention Awards, the status of student education programs, and construction project outreach. 2) Member Nejedly distributed and reviewed the minutes from the July 2, 2002 Personnel Committee meeting. Several of the items discussed appear on the Board Meeting agenda today. In addition, the Operators' request for a meeting prior to negotiations was discussed. Member Nejedly stated that both he and President Menesini have an open door policy and will meet with anyone to discuss their concerns. Member Nejedly stated however, that he will not negotiate, but listen. BREAK At 3:28 p.m., President Menesini declared a recess, reconvening at the hour of 3:40 p.m. with all parties present as previously designated. a. 9. ENGINEERING AUTHORIZE AN ADDITIONAL MOBILE HOUSEHOLD HAZARDOUS WASTE COLLECTION EVENT TO BE HELD DURING FISCAL YEAR 2002-2003 Mr. Batts, General Manager, stated that at the last Board Meeting, representatives from the Central Contra Costa Solid Waste Authority (CCCSWA) and the City of San Ramon requested that the District reconsider its reduction in the number of household hazardous waste mobile collection events and hold three mobile collection events during the 2002- 2003 fiscal year. The Board agreed to the request, and authorized staff to work with CCCSW A and the City of San Ramon in seeking alternative sources of funding these events in future years. While funds were not specifically budgeted to conduct a third mobile collection event in 2002-2003, staff believes that adjustments can be made to accommodate the request for a third mobile collection event. Following discussion, it was moved by Member Nejedly and seconded by Member Boneysteele, that staff be authorized to conduct a third household hazardous waste mobile collection event during the fiscal year 2002-2003. There being no objection, the motion was unanimously approved. b. AUTHORIZE THE SUBSTITUTION OF HEC ELECTRICAL CONSTRUCTION. THE LISTED SUBCONTRACTOR. WITH GIVENS ELECTRICAL. INC.. A NEW SUBCONTRACTOR. FOR ELECTRICAL AND INSTRUMENTATION WORK ON THE SAN RAMON PUMPING STATION RENOVATIONS PROJECT. DP 5460 It was moved by Member Hockett and seconded by Member Nejedly, that the substitution of the listed subcontractor, HEC Electrical Construction, with a new subcontractor, Givens Electrical, Inc., be authorized for electrical and instrumentation work on the San Ramon Pumping Station Renovations Project, DP 5460. There being no objection, the motion was unanimously approved. 07 11 02 219 c. AUTHORIZE THE SUBSTITUTION OF M&M DRILLING AND SHORING SERVICES. INC.. THE LISTED SUBCONTRACTOR. WITH HILLSIDE DRILLING. A NEW SUBCONTRACTOR. FOR DRILLED SHAFT FOUNDATION WORK ON THE SAN RAMON PUMPING STATION RENOVATIONS PROJECT. DP 5460 It was moved by Member Nejedly and seconded by Member Boneysteele, that the substitution of the listed subcontractor, M&M Drilling and Shoring Services, Inc., with a new subcontractor, Hillside Drilling, be authorized for drilled shaft foundation work on the San Ramon Pumping Station Renovations Project, DP 5460. There being no objection, the motion was unanimously approved. 10. HUMAN RESOURCES a. MODIFY THE PURCHASING AND MATERIALS MANAGER JOB CLASSIFICATION DESCRIPTION Mr. Batts, General Manager, stated that the Board Personnel Committee reviewed the proposed modification to the job classification description for the Purchasing and Materials Manager position. Mr. Batts distributed an additional revision dated July 9, 2002 incorporating Member Boneysteele's comments, proposing that the words "purchasing and material services" be added so the phrase would read, "Ensure District's purchasing and material services policies, procedures and guidelines are complete, accurate, up to date, and comply with Board direction, and federal, state and local laws." Mr. Batts stated that the recruitment for the position closes on July 31, 2002. There has been considerable interest in the position. It was moved by Member Boneysteele and seconded by Member Lucey, that the revised Purchasing and Materials Manager job classification description dated July 9, 2002 be approved. There being no objection, the motion was unanimously approved. b. APPROVE A REVISED JOB CLASSIFICATION DESCRIPTION FOR SUPERVISING ENGINEERING ASSISTANT Mr. Batts, General Manager, stated that the vacant Supervising Engineering Assistant position, previously filled by Lesley Klein who recently left the District, requires revision. Before starting the recruitment for this position, staff is seeking changes to the Supervising Engineering Assistant job classification description to more completely describe the duties and responsibilities of the position. The proposed revisions will provide more flexibility for organizing how work related to developer services, the sewer service charge program, and real property services is accomplished. It was moved by Member Boneysteele and seconded by Member Hockett, that the revised Supervising Engineering Assistant job classification description be approved. There being no objection, the motion was unanimously approved. 11. APPROVAL OF MINUTES a. MINUTES OF ADJOURNED REGULAR MEETING OF MAY 23. 2002 b. MINUTES OF REGULAR MEETING OF JUNE 6. 2002 c. MINUTES OF REGULAR MEETING OF JUNE 20. 2002 It was moved by Member Hockett and seconded by Member Nejedly, that the minutes of the adjourned regular meeting of May 23, 2002, the minutes of the regular meeting of June 6, 2002, and the minutes of the regular meeting of June 20, 2002, be approved as presented. There being no objection, the motion was unanimously approved. 07 11 02 220 12. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JULY 11. 2002 Member Boneysteele, chair of the Budget and Finance Committee, stated that he and Member Hockett reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele and seconded by Member Hockett, that the Expenditure List dated July 11, 2002, including Self Insurance Check No.1 01898- 101907, Running Expense Check Nos. 139099-139312, and Sewer Construction Check Nos. 24660-24706, be approved as recommended. There being no objection, the motion was unanimously approved. 13. BUDGET AND FINANCE a. APPROVE A RESOLUTION DELEGATING AUTHORITY FOR INVESTMENT OF PUBLIC AGENCY FUNDS TO THE TREASURER OF THE COUNTY OF CONTRA COSTA Mr. Batts, General Manager, stated that annually the County Treasurer requests a resolution confirming the District Board's understanding that the County Treasurer holds and invests the District's funds. The County Treasurer requests this resolution from all agencies for which they invest funds. The County submitted a standard resolution which District staff, working with District Counsel, modified slightly to reflect the need for the County Treasurer to adhere to the District's Investment Policy. Discussion followed with regard to the use of written instructions from appropriate District officers and ensuring that the appropriate District officers' signatures are on file with the County Treasurer. Following discussion, it was moved by Member Boneysteele and seconded by Member Hockett, that Resolution No. 2002-0&f; delegating authority for investment of the District's funds to the Treasurer of the County of Contra Costa, be adopted with the understanding that the appropriate authorized signatures are on file with the Contra Costa County Treasurer. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Nejedly, Lucey, Menesini None None b. RECEIVE MAY 2002 FINANCIAL STATEMENTS Mr. Randall M. Musgraves, Director of Administration, reviewed the results of operations and maintenance (O&M) for the month of May 2002, noting that expenditures were $195,000 less than budget, representing a 6.2 percent favorable variance. Year-to-date O&M expenditures were $2.9 million less than budget, representing an 8.3 percent favorable variance. Year-to-date O&M revenues of $36,905,000 were $130,000 less than budget. Mr. Musgraves reported that year-to-date Sewer Construction Fund expenditures were $29,094,271, and year-to-date Sewer Construction Fund revenues were $24,408,525, for a deficit of $4,685,746. Mr. Musgraves reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 1.625 percent to 1.637 percent. The latest interest rate as of April 2002 was 1.637 percent. The average yield of the District's LAIF account through April 2002 was 2.845 percent. President Menesini declared that the May 2002 Financial Statements were duly received. 07 11 02 221 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Hockett requested an update on Wendt Ranch sewer service issues. Mr. Kenton L. Aim, Counsel for the District, announced that he will be out of town and unable to attend the August 1, 2002 Board Meeting. 16. CLOSED SESSION a. 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. Five potential matters are to be discussed. b. LABOR NEGOTIATIONS With respect to labor negotiations, the closed session was held pursuant to Government Code Section 54957.6 to meet with designated representatives prior to and during consultations and discussions with the representatives of employee organizations regarding the salary, salary schedules or compensation paid in the form of fringe benefits to employees in order to review its position and instruct its designated representatives. The District's negotiators are Human Resources Manager Cathryn Freitas, Director of Administration Randall M. Musgraves, General Manager Charles W. Batts, and Board Personnel Committee Members Nejedly and Menesini, and the pertinent employee organization is the Central Contra Costa Sanitary District Employees Association Public Employees' Union Local 1. At 4:00 p.m., President Menesini declared the closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b) and labor negotiations pursuant to Government Code Section 54957.6 as noted above. At 4:52 p.m., President Menesini concluded the closed session and reconvened the meeting into open session. 17. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. 18. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 4:53 p.m. ~~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 07 11 02