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HomeMy WebLinkAboutBOARD MINUTES 09-06-01 224 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 6, 2001 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 September 6, 2001. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Menesini, Lucey, Boneysteele, Hockett ABSENT: Members: None a. INTRODUCTIONS . RECOGNIZE MICHAEL PENNY ON HIS PROMOTION TO ASSOCIATE ENGINEER . RECOGNIZE JEREMIAH WALSH. MAINTENANCE CREW MEMBER TRAINEE . INTRODUCE JEFFREY BUTLER. NEWLY HIRED UTILITY WORKER . INTRODUCE GARLAND HARRIS. JR.. NEWLY HIRED MAINTENANCE CREW MEMBER I . INTRODUCE HAMID TEHRANI. NEWLY HIRED MAINTENANCE CREW MEMBER I Mr. Michael Penny, Associate Engineer, was congratulated on his recent promotion. Mr. Jeremiah Walsh was recognized on his appointment to the Maintenance Crew Member Trainee position. Mr. Jeffrey Butler, Utility Worker, Mr. Garland Harris, Jr., Maintenance Crew Member I, and Mr. Hamid Tehrani, Maintenance Crew Member I, were introduced and welcomed to the District by President Hockett and the Board of Directors. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR Following explanation and discussion of the legal requirements relating to calculation of the appropriations limit, it was moved by Member Menesini and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The public sewer improvements and Offer of Dedication for the easement shown on the map of Subdivision 7979 were accepted at no cost to the District from Shapellindustries of Northern California, Job 5137, Parcel 1, San Ramon area; recording of said easement acceptance was authorized; and Resolution No. 2001-110 was adopted to that effect. Motion unanimously approved on the following vote: 09 06 01 AYES: Members: NOES: Members: ABSENT: Members: 225 Menesini, Nejedly, Lucey, Boneysteele, Hockett None None The public sewer improvements and Offer of Dedication for the easement shown on the map of Subdivision 7980 were accepted at no cost to the District from Shapellindustries of Northern California, Job 5139, Parcel 2, San Ramon area; recording of said easement acceptance was authorized; and Resolution No. 2001-111 was adopted to that effect. b. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None Public sewer improvements and Offer of Dedication for the easement shown on the map of Subdivision MS71-89 were accepted at no cost to the District from Glasgow Circle Developers loP., Job 5245, Parcel 1, Danville area; recording of said easement acceptance was authorized; and Resolution No. 2001-11 2 was adopted to that effect. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None Resolution No. 2001-113 was adopted, establishing the Sewer Construction Fund appropriations limit in the amount of $47,637,396 for the 2001-2002 fiscal year, in accordance with Article XIII B of the California Constitution; and the change in the local assessment roll due to local nonresidential construction was selected for use in computing the appropriations limit. d. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER It was requested that Engineering Items 6.b. and 6.c. be taken out of order to accommodate interested persons in the audience. President Hockett departed from the order of the agenda, proceeding to Engineering Items 6.b. and 6.c. 6. ENGINEERING AUTHORIZE THE EXECUTION OF A 25-YEAR LICENSE AGREEMENT WITH EAST BAY REGIONAL PARK DISTRICT FOR CONTINUED OPERATION OF THE LAFAYETTE/MORAGA TRAIL b. Mr. Charles W. Batts, General Manager, stated that in 1976 the District granted East Bay Regional Park District (EBRPD) a 25-year license to use District property along the old 09 06 01 226 Sacramento Northern railroad right-of-way for the Lafayette/Moraga recreational trail. The term of the original license agreement expired this year and EBRPD has requested a 25- year renewal. The license agreement has been reviewed to address current operational and risk management needs including provisions for higher insurance limits. Mr. Batts introduced Mr. Terry Noonan, Trails Coordinator for EBRPD. On behalf of EBRPD and the public who enjoy the trail, Mr. Noonan thanked the Board of Directors and the District for extending the easement for this very popular trail. Mr. Noonan stated that EBRPD has enjoyed its relationship with the District and looks forward to continuing that in the future. Following discussion of potential liability and addition of water fountains along the trail, it was moved by Member Boneysteele and seconded by Member Lucey, that the General Manager and the Secretary of the District be authorized to execute a 25-year license agreement with the East Bay Regional Park District for the continued operation of the Lafayette/Moraga Trail. There being no objection, the motion was unanimously approved. c. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AGREEMENTS WITH CAROLLO ENGINEERS. PSOMAS AND DCM/JOY AL ENGINEERING FOR THE DESIGN OF THE SAN RAMON SCHEDULE "C" INTERCEPTOR AND FORCE MAIN. DP 5554 Mr. Batts, General Manager, stated that this item relates to design of a new force main for the discharge of the San Ramon (Larwin) Pumping Station. The force main will be constructed in the Iron Horse Trail. The negotiations with the City of San Ramon required acceleration of this project. Mr. Batts introduced Mr. Tad Pilecki, Principal Engineer, who stated that in addition to the time lines established for the Dougherty Tunnel and Trunk Sewer Project, the agreement with the City of San Ramon also calls for the District to complete the San Ramon Pumping Station and Force Main Projects by December 2002. Using a map, Mr. Pilecki described the San Ramon Schedule "C" interceptor and force main alignment which tie into the San Ramon Interceptor Project completed in 1988. The current project will be in the Iron Horse Trail and there are a number of schools in the area as well. One of the major concerns of staff is the number of people who may be impacted by this project. Staff will be meeting with the stakeholders (East Bay Regional Park District, the City of San Ramon, the Town of Danville, hikers, cyclists, equestrians, businesses, parks and schools, homeowners, and others in the community) early and often to determine their concerns and reach informed consent so the District can complete these projects as agreed to with the City of San Ramon. District staff is also be working with Contra Costa County, Corps of Engineers, U.S. Fish and Wildlife Service, California Department of Fish and Game, California State Water Resources Control Board, CalOSHA, the City of San Ramon, and the Town of Danville to acquire permits for on-time construction. In addition to creek crossings and flood control, coordination with utilities will be needed since there are a number of utilities and easements in the area, including two existing District pipelines, Santa Fe pipeline, PG&E, and fiber optics. Over time surface improvements such as a concrete trail and landscaping have also been made. Construction in this area will be very difficult. Trenchless technology is being considered to avoid removing the surface improvements. Mr. Pilecki reviewed the cost summary and described the various design and construction components of the San Ramon Schedule "C" Interceptor and Force Main Project. Mr. Pilecki stated that the existing Environmental Impact Report (EIR) for this project must be reviewed to determine if it is adequate once design is further along. The total estimated project cost is $8,450,000. Mr. Pilecki stated that more accurate cost estimates will be available in January 2002 at the Budget Planning Workshop since design will be further along at that time. Following discussion regarding selection of consultants for subsequent work on this project, it was moved by Member Menesini and seconded by Member Boneysteele, that the General Manager be authorized to execute agreements with Carollo Engineers in the amount of $520,000, PSOMAS in the amount of $60,000, and DCM/Joyal Engineering in the amount of $85,000 for the design of the San Ramon Schedule "C" Interceptor and Force Main, DP 5554. There being no objection, the motion was unanimously approved. At this time, President Hockett reverted to the order of the agenda. 09 06 01 227 5. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, stated that the energy situation in California has stabilized and the District has purchased its energy requirements for the next year. Staff will continue to monitor the energy market and report back to the Board on an as-needed basis. Energy conservation and cost savings programs will continue to be a primary concern for staff. Mr. Batts introduced Mr. Jim Belcher, Senior Engineer, who reported that natural gas prices continue to soften. Additional natural gas was purchased for September and October 2001 and July through October 2002 at $2.85 per decatherm and $2.95 per decatherm respectively. The California Public Utilities Commission (PUC) categorically denied the District's rotating outage block exemption request and the requests of all other wastewater facilities, citing a 1988 report that says that treatment plants should have two sources of (backup) power. The District treatment plant does have two sources of backup power but not all of the 21 pumping stations do. To ensure reliability at all pumping stations, additional funding will be required. Mr. Belcher stated that energy conservation at the plant has been a primary focus of staff and the success of those efforts is evident. In July 2001 the District's cogeneration facility achieved its highest output (2,370,000 KWH) since the facility was put in operation in 1 995. August 2001 was the lowest month import (39,888 KWH) of P.G.&E. power since the cogeneration facility was put in. Mr. Belcher thanked Plant Operations Division Manager Doug Craig and his staff for their efforts in this regard. Mr. Belcher showed a chart of electricity use and production, noting that imported power is down substantially, and cogeneration production and total plant demand are tracking each other although an increase in demand can be seen from the new Environmental Laboratory Facility coming on line. As a result of natural gas prices falling and air permit issues, the use of landfill gas in the turbine has been discontinued. Landfill gas usage has dropped from 21,000 decatherms to 16,000 decatherms per month. In response to questions from the Board, Mr. Belcher stated that the contract requires that the District take 700,000 cubic feet of landfill gas per day or approximately 15,000 decatherms per month. Mr. Kenton L Aim, Counsel for the District, noted that this is not a take or pay clause but rather a "no excuse" clause. Mr. Belcher stated that the District's Energy Conservation Team efforts are continuing. A Star Building Energy Analysis is being considered for the Headquarters Office Building and it may be possible to take advantage of energy saving funds available from the State. Mr. Batts stated that providing backup power for the pumping stations has been a priority for some time. Also, at the last Board Meeting the District received the Association of Metropolitan Sewerage Agencies (AM SA) Gold Award for 100 percent compliance with the National Pollutant Discharge Elimination System (NPDES) permit at the same time the District has been able to reduce operating power needs. Mr. Batts commended Plant Operations Department staff on these significant achievements. 2) Mr. Batts, General Manager, stated that a very important milestone has been achieved on the Pleasant Hill Relief Interceptor, Phase 4 Project, DP 5170. The work through the school yard at Sequoia Middle School and on Boyd Road was completed by the required completion date of September 4, 2001. This required many long hours of work by District staff members associated with the project and the contractor. Mr. Batts introduced Mr. Michael Penny, Associate Engineer, who stated that the original contract price for the project was $8,565,241. The contractor is Mountain Cascade, 09 06 01 228 3) 09 06 Inc. The project scope of work includes installation of approximately 7,600 feet of interceptor sewer, 2,800 feet of sewer main, and 9,200 feet of recycled water line. The construction period is one year. Notice to Proceed was issued on March 19, 2001 and the contract completion date is March 18, 2002. The project is now 75 percent complete. There have been three change orders with a total net value of $4,300. Mr. Penny stated that additional changes orders in the range of $50,000 are expected in connection with paving. The District will be receiving some reimbursement from the city. Mr. Penny described the project location. As indicated earlier, it was critical that the work at Sequoia Middle School and Boyd Road be done prior to the start of school on September 4, 2001. Work was actually completed ahead of schedule on August 30, 2001. School officials were very happy. Mr. Penny showed before and after photographs of the school yard and Boyd Road. Mr. Penny stated that work still to be done includes a 30-inch interceptor in Gregory Lane to tie into the existing 30-inch line. The contractor started work on that yesterday. In addition there are other 8-inch sewer lines and the recycled water line from Ardith Drive to Gregory Lane yet to be done. The residents on Ardith Drive have experienced a great deal of disruption. Work on Ardith Drive was left unrestored because of the need to complete the work at the school. District staff is working with the City to repave and resurface Ardith Drive. New technology, guided horizontal drilling, will be used for two creek crossings on this project. Staff is excited about this because it could also be used on an upcoming project in Orinda. In closing Mr. Penny stated that a significant benefit of this Phase 4 project is elimination of five syphons. The Board thanked Mr. Penny for his report and commended District staff on the success of this project and the sensitivity to the needs of the residents and community. Mr. Penny thanked the Board, stating that the entire construction team worked hard and had a lot of cooperation from the contractor, residents, schools, and the City of Pleasant Hill. Mr. Batts, General Manager, stated that construction has begun on the Dougherty Tunnel and Trunk Sewer Project and responsibility for project management now resides in the Capital Projects Division. At the August 28, 2001 San Ramon City Council meeting Mr. William Brennan, Capital Projects Division Manager, reported to the City Council on the progress of construction. Mr. Batts introduced Mr. Brennan, who stated that construction is moving forward. Mr. Michael Fuller, President of Mountain Cascade, has been on the job site directing work. Thirteen contacts from the public have been logged; ten were complaints and eight of those have been resolved; two were information only; and one was a compliment. Mr. Brennan distributed and highlighted Dougherty Valley Tunnel and Trunk Sewer Project Status Report No.2. Mr. Brennan recapped the report he made to the City Council on August 28. The written project status report previously given to the Board, was given to the City Council and the public. The City Council indicated that the format of the status report was acceptable. At the City Council meeting, one citizen presented a picture of the excavator in front of her house to demonstrate how big it is. Mr. Brennan stated that the City has not scheduled a report on the next City Council agenda, but he will be available if one is requested. Sufficient copies of the project status report will be provided for the City Council, City staff, and the public. Mr. Brennan reported that the second public meeting to discuss the San Ramon Pumping Station design will be held at 7:00 p.m. on September 13, 2001. The first meeting was held on August 9. The City Planner assigned to the project compiled the citizen and staff comments after that meeting. The City Planner was very prompt in providing that feedback. Mr. Brennan recapped the feedback and stated that he believes that the District can comply with most of it. As stated by Mr. Pilecki earlier, the design of the San Ramon Force Main Project is just beginning. Many sensitive issues will 01 229 be involved in terms of public access, the Iron Horse Trail, and so on, and staff will be working carefully to oversee that work as well. ","¥i> 4) Mr. Batts, General Manager, stated that as the Board is aware, there will be increased regulatory attention paid to collection system overflows (SSO's). Also, the Environmental Protection Agency CMOM (Capacity, Management, Operations and Maintenance) draft regulations are expected to be released within the next 60 days. These draft regulations do not provide for an affirmative defense for any overflows, even for a system with documented good management and operations practices. At the State level, Assembly Bill 285 (Wayne) would require collection system operators to submit detailed information about overflows to the State Water Resources Control Board presumably to be followed by mandatory penalties. Mr. Batts stated that with this increased regulatory attention on sanitary sewer overflows, he has asked Mr. Bill Echols, Collection System Operations (CSO) Department Field Operations Superintendent, to review the procedures CSO uses in prioritizing its construction and cleaning efforts, the causes of overflows in the District system, and what staff is doing to reduce these problems. Mr. Bill Echols, CSO Field Operations Superintendent, distributed and reviewed overflow statistics for 1999 and 2000. In 1999 there were 100 overflows, of which 64 were root plugs, 14 grease plugs, 1 9 other plugs, 2 surcharges, and 1 other. CSO has put a lot of effort into addressing the backlog and reducing overflows. When CSO began to concentrate on the backlog, priority work, and manhole raising, the routine cleaning work suffered. In 2000, there were 144 overflows, of which 97 were root plugs, 16 grease plugs, 22 other plugs, 4 surcharges, 1 clamp leak, 1 pumping station, and 3 others. This was a concern. Fifty-seven or 37.5 percent of the total 144 overflows were from unscheduled routine lines. Mr. Echols stated that to try to address this, CSO took people from construction and underground service alert (USA) crews when possible to increase the amount of routine cleaning work CSO is able to complete each month. (CSO averages about 1,300 USA requests every month.) In addition, new equipment was purchased for the hydro truck which is very efficient at removing roots. At the end of the month when the hydro crews are done with their work, they are moved into root cleaning. Mr. Echols stated that as a result, CSO is seeing the number of overflows go down. It is expected that there will be 115 to 120 overflows in 2001. Mr. Echols stated that CSO has also been working closely with Engineering. In upcoming construction projects four surcharged manholes will be eliminated. Critical line segments are being identified and placed on a prioritized list. Mr. Echols described the way in which priorities are set. Engineering is trying to incorporate areas with prior overflows into capital projects. Examples include recent Martinez and Lafayette projects which have taken care of a number of problem areas. CSO also has a vapor root program starting in about six weeks. Easement manholes are being identified and will be inspected routinely at the end of the month. There has been a problem in the Blackhawk area where there are approximately 140 manholes in easements. Those manholes will be identified, uncovered, and inspected. Mr. Echols stated that he believes the District is heading in the right direction and will be reducing overflows in the future. The best of the best in the industry experience approximately 6 overflows per 100 miles. That would equate to about 90 overflows per year for the District. Mr. Echols stated that another factor that is complicating this work is that with some of these priority jobs there are property rights issues. The interaction, cooperation, and communication between CSO and Engineering is helping and the ability of CSO to shift forces where they are needed is also helping. Mr. Echols invited any Board Member who is interested to come and look at the CSO operation. 09 06 01 230 09 Mr. Batts thanked the Board for the additional CSO crew authorized last year. They are doing some of the cleaning work ahd addressing the backlog. Overflows have increased and that is a concern. Staff is working to bring those numbers down. The Board of Directors and Mr. Batts commended Mr. Echols and Mr. Rhoads and all the CSO crews for the excellent work they are doing. Member Lucey stated that he has always thought the District has the greatest crews at CSO that he has seen anywhere. One of the proofs is all of the promotions and one of the challenges is bringing the new hires up to speed with current employees. In response to questions from Member Menesini, Mr. Echols stated that CSO is very aware of the proposed CMOM regulations. CSO is looking at equipment and ways to respond to CMOM. When the TV Inspection Project is Orinda is completed, staff will have a better sense of what the District may be facing in that area. Staff is watching that very carefully and the way we work may be changing. 5) Mr. Batts, General Manager, announced that the District will be conducting two household hazardous waste mobile collection events. The first will be held on Saturday, September 15, 2001 at the City of San Ramon corporation yard. The second will be held on Saturday, October 13, at the BART parking lot in Lafayette. Philip Services Corporation, under contract with the District, will schedule appointments, and collect and dispose of household hazardous waste at both events. Signage at the event sites and advertisements will indicate that the events are sponsored by the District. A District Household Hazardous Waste Collection Facility staff member will be present at all times at both these events. Mr. Batts reported that in conjunction with the District's mobile collection event in Lafayette on October 13, the Central Contra Costa Solid Waste Authority (CCCSWA) will be conducting an electronic waste (e-waste) collection event. Targeted e-waste includes television sets, computer monitors, other types of cathode ray tubes, computers, batteries, and other electronic devices. CCCSWA will be funding the costs of e-waste collection and disposal. 6) Mr. Batts, General Manager, announced that the District is advertising for bids for the Deaerator Replacement Project, DP 6160. The engineer's estimate for this work is $180,000. 7) Mr. Batts, General Manager, stated that staff has kept the Board apprised of the continuing discussions with the City of Concord relative to contractual issues. While progress has been slow, several issues have been resolved. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that over the last few months she and Director of Engineering Ann Farrell have been meeting weekly with representatives of the City of Concord. The City has agreed to reimburse the District for its share of the cost of Treatment Plant buffer property, the County Animal Control Facility property, but has brought forward a proposal relative to that payment. Ms. Ratcliff distributed a letter dated August 29, 2001, from Mr. Mike Vogan, Director of Public Works-Maintenance Services for the City of Concord. Ms. Ratcliff stated that the City of Concord was invoiced for $905,255 a year ago and interest has been accruing. This was an unexpected and unbudgeted expense for the City. The City has come forward with the draft letter distributed to the Board, requesting that the City be allowed to pay the $905,255 over a four-year term beginning July 2004; that interest begin accruing upon signing of the agreement and be based on the annual one- year Treasury Bill rate in the month prior to signing the agreement; that the City not be penalized for paying it off sooner; and that the District forego the interest that has been accruing since August 2000 (approximately 06 01 8) 9) 10) 11 ) 12) 231 $50,000). Ms. Ratcliff stated that staff recommends that the District go forward with this agreement. A position paper will be calendared for the Board's consideration at th'e"tì~xtB()ard Meeting. Mr. Batts, General Manager, stated that the Environmental Laboratory Open House is scheduled for September 21, 2001 from 10:00 a.m. to 1 :00 p.m. with the program starting at 11 :00 a.m. The program will highlight Pollution Prevention Week and the District's role and efforts in preventing pollution. Mr. Batts, General Manager, announced that the Plant Operations Maintenance Division is proposing to send an Electrical Technician to a three-day seminar on troubleshooting electrical control circuits. The seminar will be held in Sacramento in September. The estimated cost is $1,600. Sufficient funds are in this year's training budget, but not budgeted as this specific training. Mr. Batts, General Manager, announced that on Tuesday, September 4, 2001, the District's Household Hazardous Waste Collection Facility started operating under its new schedule, that is five days a week for all customers. The facility is now open Tuesday through Saturday from 9:00 a.m. to 4:00 p.m. On Tuesday there were 41 residential customers and on Wednesday there were seven customers. Discussion followed with regard to discouraging residential customers from using the facility on Wednesdays. It was noted that all customers will be served, but staff is trying to keep Wednesdays a lower traffic day to allow time for packing and shipping and to accommodate small business. The Board asked that staff not give a negative message to any customer. Mr. Batts stated that on a positive note, the facility is getting up to the full staffing authorized by the Board. Mr. Batts stated further that he received a compliment at a gathering he attended recently. The person stated that he was very impressed with the efficient, cheerful service he received at the facility. Mr. Batts, General Manager, stated that staff will be contacting Board Members with regard to a tour of the Moraga and Orinda Pumping Stations prior to the next Board Meeting or before the first Board Meeting in October. Mr. Batts, General Manager, announced that the District has received a letter dated August 31, 2001 from Senator Tom Torlakson inviting the District to the meeting of the Senate Select Committee on Bay Area Infrastructure in Oakland on September 19, 2001. Mr. Batts stated that a staff member will attend. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) Member Menesini stated that prior to the last Board Meeting, he and Member Boneysteele toured the Pleasant Hill Relief Interceptor Project site. Member Menesini praised District staff and the contractor for the excellent work on this project, the extra effort made to coordinate with school opening, and the sensitivity to the residents' concerns. 09 06 01 232 2) Member Menesini stated that he has visited the new Environmental Laboratory and finds it to be an amazing contribution to the District and its ratepayers. 3) Member Menesini announced that he has been asked to represent the Association of Bay Area Governments (ABAG) at CALFED. 4) Member Menesini stated that at a recent meeting he learned that people are having a difficult time knowing where to call if they find dumping in creek. District Source Control staff was very helpful in that regard. Member Menesini stated that it is important for the District to work with the County to ensure that telephone numbers are published and telephones are staffed so that when environmental pollution is discovered it can be reported. BREAK At 3:53 p.m., President Hockett declared a recess, reconvening at the hour of 4:08 p.m. with all parties present as previously designated. 6. ENGINEERING a. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON ECHO SPRINGS ROAD IN LAFAYETTE FOR INSTALLATION OF SEWER IMPROVEMENTS: ADOPT RESOLUTIONS OF INTENTION TO CREATE ECHO SPRINGS ROAD CAD NO. 2001-2. FOR APPROVAL OF THE BOUNDARY. AND REQUESTING CONSENT OF THE CITY OF LAFAYETTE FOR CCCSD TO CONDUCT PROCEEDINGS FOR THE CAD Mr. Batts, General Manager, introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that the proposed Echo Springs Road Contractual Assessment District (CAD) is located in Lafayette. Property owners on Echo Springs Road have requested that the District form a contractual assessment district for the purpose of financing and constructing a public sewer system to serve their properties. The Echo Springs Road CAD meets all of the CAD formation criteria. Five properties would benefit from the CAD. Four participants have expressed interest in moving forward with the project. All properties are owner occupied. The estimated cost is $120,000. The lump sum cost per participant is $30,000 or $3,970 annually for ten years. Mr. Swanson reviewed the 2001-2002 CAD authorizations, noting that $369,755 has been authorized to date. Including the estimated cost of the Angelo/EI Sombro CAD 2000-3 to be considered on September 20, 2001 of $210,000, the proposed Echo Springs Road CAD would bring the 2001-2002 CAD authorizations to $699,755. It was moved by Member Lucey and seconded by Member Nejedly, that formation of a contractual assessment district consisting of five properties on Echo Springs Road be authorized; that Resolution No. 2001-114, a resolution of intention to create Echo Springs Road CAD No. 2001-2 for the purpose of installing sewer improvements, be adopted; that Resolution No. 2001-115 be adopted, approving the boundary of the assessment district; and that Resolution No. 2001-116 be adopted, requesting consent from the City of Lafayette for CCCSD to conduct proceedings for Echo Springs Road CAD No. 2001-2. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Nejedly, Menesini, Boneysteele, Hockett None None b. AUTHORIZE THE EXECUTION OF A 25-YEAR LICENSE AGREEMENT WITH EAST BAY REGIONAL PARK DISTRICT FOR CONTINUED OPERATION OF THE LAFA VETTE/MORAGA TRAIL This item was taken out of order earlier in the agenda. 09 06 01 233 c. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AGREEMENTS WITH CAROLLO ENGINEERS. PSOMAS AND DCM/JOYAL ENGINEERING FOR THE DESIGN OF THE SAN RAMON StHEDULEirC" INTERCEPTOR AND FORCE MAIN. DP 5554 This item was taken out of order earlier in the agenda. 7. APPROVAL OF MINUTES a. MINUTES OF AUGUST 23. 2001 It was moved by Member Menesini and seconded by Member Lucey, that the minutes of August 23, 2001, be approved as presented. There being no objection, the motion was unanimously approved. 8. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED SEPTEMBER 6.2001 Member Lucey, Chair of the Budget and Finance Committee, stated that he and Member Nejedly reviewed the expenditures. It was moved by Member Lucey and seconded by Member Nejedly, that the Expenditure List dated September 6,2001, including Self Insurance Check Nos. 101778-101779, Running Expense Check Nos. 133818-134063, and Sewer Construction Check Nos. 23662-23703, be approved as recommended. There being no objection, the motion was unanimously approved. 9. BUDGET AND FINANCE a. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Mr. Batts, General Manager, stated that annually the Board must review the District Investment Policy. District staff and Counsel for the District have reviewed legislative changes and determined that no changes are necessary at this time. It was moved by Member Boneysteele and seconded by Member Menesini, that the District Statement of Investment Policy be approved with no changes. There being no objection, the motion was unanimously approved. b. RECEIVE ADJUSTED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 2.QQJ. Ms. Deborah Ratcliff, Controller, provided an overview of the adjusted financial results of District operations for the fiscal year ended June 30, 2001. The books were held open to allow all invoices to be booked and adjustments made. Ms. Ratcliff reviewed the adjustments compared to what was previously reported as listed in the memorandum to the Board provided with the agenda packet. Ms. Ratcliff provided a brief report on operations and maintenance revenues, expenses and reserves for the fiscal year ended June 30,2001. Actual revenues of $37,716,000 were $1,344,000 greater than budget, representing a 3.7 percent favorable variance. Actual expenditures of $38,269,000 were $2,408,000 greater than budget, representing a 6.7 percent unfavorable variance. As a result, reserves will be decreased by $553,000 rather than augmented by $511,000 as budgeted. This decrease will draw down the District's O&M fund balance to $3,372,000 at June 30, 2001. Ms. Ratcliff reported on Sewer Construction Fund revenues, expenditures, and reserves for the fiscal year ended June 30, 2001. Ms. Ratcliff stated the 2000-2001 Budget included the Dougherty Tunnel and Trunk Sewer Project and that is shown on the overhead; but because of the delay in the project, the presentation will focus on the 2000-2001 Budget excluding the Dougherty Tunnel and Trunk Sewer Project. Actual revenues of $18,928,000 were $536,000 less than budget. Actual expenditures of $28,169,000 were $3,848,000 less than budget. 09 06 01 234 Revenues minus expenditures is $9,241,000, so there will be a cut into reserves bringing the Sewer Construction Fund balance down to $38,077,000 at June 30, 2001. Ms. Ratcliff stated that total funds available to meet cash flow for O&M Fund and Sewer Construction Fund will be reduced from $51 million to $41 million. The approximate total funds required to meet cash flow each month is $30 million. Ms. Ratcliff stated that the District is getting very close to that amount in her opinion. President Hockett thanked Ms. Ratcliff for her report and declared that the Adjusted Financial Statements for Fiscal Year ended June 2001 were duly received. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Lucey requested that the Board consider placing Contractual Assessment District (CAD) items that meet all CAD criteria on the Consent Calendar in the future. Mr. Batts agreed that staff would do that. Mr. Batts, General Manager, stated that future agenda items include the District Vehicle Policy and lease of property. 12. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation to be discussed is Central Contra Costa Sanitary District v. Joanne Lindroth and related cross actions, Contra Costa County Superior Court Case No. C99-04092. b. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. One potential matter is to be discussed. c. 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 4:25 p.m., President Hockett declared the closed session to discuss litigation pursuant to Government Code Sections 54956.9(a), (b), and (c) as noted above. At 5:07 p.m., President Hockett concluded the closed session and reconvened the meeting in open session. 13. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. 09 06 01 235 14. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at the hour of 5:08 p.m. COUNTERSIGNED: S cr t y of the Central ntra Costa Sa . ary District, County of Contra Costa, State of California ~~ 11 Jt¡Jft; " President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California 09 06 01