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HomeMy WebLinkAboutBOARD MINUTES 09-20-01 236 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 20, 2001 At 1 :30 p.m., prior to the regular Board Meeting, a reception was held honoring the 2001 Pollution Prevention Award recipients. 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 20, 2001. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Menesini, Boneysteele, Hockett ABSENT: Members: Lucey Member Lucey entered the meeting at the hour of 2:02 p.m. a. INTRODUCTIONS . INTRODUCE CHRISTOPHER NEWKIRK. NEWLY HIRED BUYER I Mr. Christopher Newkirk, Buyer I, was introduced and welcomed to the District by President Hockett and the Board of Directors. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. ADOPT A RESOLUTION ENCOURAGING AND PROMOTING POLLUTION PREVENTION Mr. Charles W. Batts, General Manager, stated that the District Board, along with other public agencies, has traditionally adopted a resolution recognizing National Pollution Prevention Week and promoting Pollution Prevention as a program to improve the quality of our environment. It was moved by Member Boneysteele and seconded by Member Nejedly, that Resolution No. 2001-117 be adopted, encouraging and promoting pollution prevention. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Nejedly, Menesini, Lucey, Hockett None None b. PRESENT 2001 POLLUTION PREVENTION AWARDS TO ALAMO FRED'S CLEANERS. CITY OF SAN RAMON. D&H ENTERPRISES. TAQUERIA EL AMIGO. AND VARELLA CLEANERS: PRESENT HONORABLE MENTION TO A-1 BRAKE AND TIRE. AUTOHAUS STUTTGART. EUROPEAN AUTOTECH. GALAXY PRESS. GERMAN AUTO CARE. AND WALNUT CREEK TRANSMISSION Mr. Batts, General Manager, stated that this is the District's Tenth Annual Pollution Prevention Awards presentation. The award winners were selected by an awards 09 20 01 237 committee in which Member Menesini participated, based on nominations by the Green Business Program, District inspectors, and the public. These are businesses that have shown by their actions a true commitment to the principles of pollution prevention and environmental concern. Mr. Batts introduced Mr. Randy Schmidt, Senior Engineer in the Environmental Services Division, who stated that it is a great pleasure to introduce the 2001 Pollution Prevention Awards winners and to recognize those who have gone above and beyond what is required. Mr. Schmidt stated that the City of San Ramon Vehicle Service Center has earned the Green Business certification, and they have done extensive and comprehensive pollution prevention efforts. The City has replaced its solvent cleaning system with an aqueous cleaning system to reduce wastes. The City operates a fleet of 17 compressed natural gas vehicles to reduce air pollution, trains employees on pollution prevention measures, and has exhibited a strong commitment and financial investment in pollution prevention. President Hockett presented the 2001 Pollution Prevention Award to Mr. Ron McClean, City of San Ramon Maintenance Field Supervisor. Mr. Schmidt stated that Taqueria EI Amigo Restaurant in Concord has implemented Best Management Practices for restaurants as recommended by the District to minimize grease in the sanitary sewer. They have implemented a training program to ensure that staff knows and follows Best Management Practices and Pollution Prevention practices, and they have volunteered to work with the District and the Clean Water Program to create a radio and video outreach program about restaurant Best Management Practices for the Spanish-speaking community. President Hockett presented the 2001 Pollution Prevention Award to Ms. Virginia Teran, owner of Taqueria EI Amigo. Mr. Schmidt stated that D&H Enterprises is a vehicle service facility in Concord. D&H Enterprises has earned Green Business certification, replaced hydraulic fluid in its hydraulic lift with peanut oil to prevent groundwater contamination in case of a leak, replaced its solvent parts washing system with an aqueous parts washer to minimize hazardous wastes and air pollution, and exhibited a strong commitment to pollution prevention. President Hockett presented the 2001 Pollution Prevention Award to Mr. Dave Kemnitz, owner of D&H Enterprises. Mr. Schmidt stated that Varella Cleaners in Walnut Creek has a long-time commitment to operating a safe and healthy business. Varella Cleaners has replaced its perchloroethylene (perc) machine with a state-of-the-art hydrocarbon solvent machine that cost $65,000 even through the perc machine was quite new. Mr. Lee, the owner of Varella Cleaners, is active in the local dry cleaners association and is a vocal proponent for switching to hydrocarbon systems. President Hockett presented the 2001 Pollution Prevention Award to Mr. Woo Lee, owner of Varella Cleaners. Mr. Schmidt stated that Alamo Fred's Cleaners will also receive the 2001 Pollution Prevention Award, but it was not possible for a representative to be present today. Mr. Schmidt stated that Honorable Mention Awards are being presented to businesses that have also done a good job in preventing pollution. President Hockett presented the 2001 Honorable Mention Awards Mr. Bob Meyer owner of Galaxy Press in Concord. Others who were not able to be present today, but who will also receive 2001 Honorable Mention Awards are A-1 Brake and Tire in Walnut Creek, Autohaus Stuttgart in Moraga, European Autotech in San Ramon, German Auto Care in San Ramon, and Walnut Creek Transmission in Walnut Creek. Mr. Batts stated that all of these businesses are making a difference. With the increased emphasis on pollution prevention in the District's National Pollutant Discharge Elimination System (NPDES) permit this is even more important to the District than ever. President Hockett congratulated all 2001 Pollution Prevention Award winners, stating that they have gone above and beyond what is required and thanking them for taking the time from their busy schedules to be present today. 09 20 01 238 As a point of order, Member Lucey stated that he asked the General Manager to have an American flag in the Board Room in light of national events. Member Boneysteele stated that he would request that this matter be calendared on the agenda for discussion. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly, that the Consent Calendar, consisting of Item a., be approved as recommended. a. The public hearing and consideration of approval of the Angelo Street/EI Sombro Contractual Assessment District (CAD) No. 2000-3 was continued to October 4, 2001. There being no objection, the motion was unanimously approved. Member Lucey left the meeting at the hour of 2: 13 p.m. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO INSITUFORM TECHNOLOGIES. INC.. FOR THE ORINDA TRUNK SEWER CURED-IN-PLACE PIPË PROJECT. DP 5551 Mr. Batts, General Manager, stated that this project is a result of the television inspection performed earlier this year that identified urgently needed work on large diameter sewers in the Orinda area between the Lower Orinda and the Orinda Crossroads Pumping Stations. Mr. Batts introduced Mr. Tom Godsey, Associate Engineer in the Capital Projects Division, who stated that there is an ongoing project to TV approximately 57 miles of concrete pipe suspected of having potential corrosion. Camino Pablo in Orinda was selected because of its age and because it is a force main discharge. The first stage of evaluation was TV inspection. Mr. Godsey briefly reviewed the three components of the District's TV inspection program, presented a map of the project area, and slides of the video tape from the TV inspection of the Orinda trunk sewer. Construction activities will include setup of a sewer bypass system, lining 977 feet of the 3D-inch reinforced concrete pipe with a cure-in-place pipe liner, protection of the junction structure and manholes from future corrosion by lining with corrosion resistant lining, and site restoration including the sewer bypass system removal, paving, striping, and site cleanup. Using diagrams and slides, Mr. Godsey described the cured-in-place pipe lining method and the location of this project. As always, traffic issues must be considered. The sewer bypass system will be put together at night to avoid lane closures during peak traffic. Cured-in-place pipe installation will begin and end at night to avoid lane closures during peak traffic hours. During cured-in-place pipe "cure," no lane closures will be necessary since equipment will be out of the traffic lane. Construction will begin in about 30 days and the project will take ten days to complete. Because of the current construction at the pumping station, renovation of a small length of 30-inch reinforced concrete pipe into the pumping station will be done during a cured-in-place project scheduled for about 18 months from now. Future work will also include review and evaluation of methods for sulfide control at the pumping station and review and evaluation of reinforced concrete pipe protection measures. It was moved by Member Nejedly and seconded by Member Boneysteele, that award of a construction contract in the amount of $234,435 for completion of the Orinda Trunk Sewer Cured-in-Place Pipe Project, DP 5551, be authorized to Insituform Technologies, Inc., the lowest responsible bidder. There being no objection, the motion was approved with Member Lucey being absent. 09 20 0.1 239 7. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who distributed a status report and provided an update on the Dougherty Tunnel and Trunk Sewer Project, DP 5902. Mr. Mike Fuller, President of Mountain Cascade, continues to be at the job site directing work. Mr. Brennan reported that there have been 13 more public contacts from September 1, 2001 to date. Of those, nine were complaints, three were questions, and one was a compliment. Discussion followed with regard to the nature and resolution of complaints. Mr. Brennan stated that he attended the September 11, 2001 San Ramon City Council meeting to listen and to answer any questions that were raised. Copies of the status report were provided to the San Ramon City Council Members, staff, and the residents. No questions were raised at that meeting. Mr. Brennan reported that at 7:00 p.m. on September 13, 2001, there was another meeting with residents on the San Ramon (Larwin) Pumping Station improvements. Several District staff members attended. Three citizens were present. There were relatively few comments, and most of them related to landscaping. The next step is consideration by the San Ramon Architectural Review Board on October 18, 2001 at 2:00 p.m. Member Nejedly stated that he visited the job site with Mr. Batts and Mr. Paul Kelly, Engineering Assistant III. Quite a bit of work has been done and open cut work has moved along. The patch paving was a little rough and there was a huge pit at the pumping station, but no curbs were broken or other visible damage noted. Mr. Brennan stated that the paving issue came up at the progress meeting yesterday and the paving patchwork has been redone. Discussion followed with regard to start of construction on the tunnel, and the geology along the tunnel alignment. 2) Mr. Batts, General Manager, stated that District staff has been reviewing the District's property management practices, and would like to present the Board with an update on the District's real property and leases. The most recent property purchase was in July 1999, when the District purchased 4.1 acres across the street from the Headquarters Offices Building from Contra Costa County giving the District ownership of approximately 99 acres of buffer land. Recently District staff has renegotiated all the leases at the 4737 Imhoff Place building and with County Quarry Products, in an effort to bring the rates up to market value. Currently staff is reviewing the Contra Costa Topsoil lease and future uses for the Lagiss and Kiewit properties. Mr. Batts stated that Mr. Jerry Davis, the District's acting Director of Administration, who is a commercial real estate broker in Solano County, and Ms. Victoria Lamica, the District's Purchasing and Materials Manager who also acts as the District Property Manager, are here to provide an update and to seek Board direction. Ms. Victoria Lamica, Purchasing and Materials Manager, stated that currently the District has approximately 99 acres of buffer and leased properties. As Mr. Batts indicated, the County Quarry Products ten-year lease was renegotiated recently by the former Director of Administration and District Counsel Kent Aim to bring the lease rate to competitive market value. This seven-acre parcel is used for a concrete and asphalt recycled plant. The Contra Costa Topsoil lease is currently being renegotiated to bring it to current rate standards. The Contra Costa Topsoil parcel is just under 5.5 acres and is used as a soil mixing plant. The 4737 Imhoff Place light industrial building contains 11 bays of various sizes which are fully occupied with business applications such as electric controller fabrication, tractor repair, ATM maintenance, plumbing and sewer service, tile and granite contracting, and paint stripping. The lease for the 10,682 square 09 20 01 240 09 foot Contra Costa County Animal Control Shelter began in 1 999 and remains effective until November 4, 2002. The 50-acre Lagiss property at the end of Blum Road is currently vacant. Staff will be soliciting proposals for grazing cattle. The 33-acre Kiewit property is currently being used for grazing livestock and weed abatement. The lease is a month-to-month lease. Ms. Lamica stated that the District has various other own and fee properties including the Willows Center Concord vehicle parking area, a driveway used by Shell Oil Company for parking lot access, shared right-of- way for five-inch and eight-inch pipelines used by IT Corporation, and an auto parking strip used by the Concord Commerce Center in Pacheco. All leases are short-term and have compatible uses with the District. Mr. Jerry Davis, acting Director of Administration, reported on future land and lease actions which require direction from the Board. Mr. Davis stated that the person currently utilizing the Lagiss property has been asked to vacate because of problems identified there. Ramshackle buildings, boarding horses, parking of vehicles, and storing of materials without permission created potential liability problems for the District. Staff is preparing a Request for Proposals (RFP) for cattle grazing only because it has been determined that horses bring additional people on the property with additional potential liability. The property is adjacent to a residential area and grazing seemed a more prudent and compatible use of the property. Mr. Davis stated that the Kiewit property is currently on a month-to-month lease. The District has had inquiries from developers who propose a more beneficial use of the property. Any uses would have to have approval of Buchanan Air Field. Mr. Davis stated that before spending a lot of staff time evaluating these proposals, it seemed appropriate to bring this to the Board to determine if there is Board interest in pursuing different uses for the property that could bring additional revenue to the District. The property is currently zoned heavy industrial and types of uses might include mini storage, agricultural uses, community auto park for car sales, warehouse distribution, or equipment storage. If the Board is interested in looking at a higher use, the Board could: direct staff to explore alternatives and bring the matter back to the Board; appoint a Board/staff committee to review alternatives; or schedule a Board workshop to explore alternatives and provide input. In the discussion that followed, it was the consensus of the Board, with Member Lucey being absent, that the property be put to its highest and best use consistent with the purposes for which it was acquired and consistent with airport regulations. It was agreed that a Board workshop be scheduled to explore the options. 3) Mr. Batts, General Manager, stated that at the last Board Meeting, there was a request to consider placing approval to initiate routine contractual assessment district (CAD) projects on the consent calendar for approval. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that there are three Board decision points relating to contractual assessment districts. Currently, the position paper initiating a CAD and the position paper conducting the public hearing and requesting project approval are placed on the regular agenda. The position paper confirming the final assessment is placed on the Consent Calendar. It is proposed that position papers initiating routine CAD's that meet all District CAD criteria be placed on the Consent Calendar in the future with the following exceptions: . Does not meet any of CAD formation criteria . More than 25 properties . Cost per property more than $25,000 20 V"..""1",', , ,,> ,j " 241 . Several CAD projects vying for limited funds . Other technical, êih/irõnm'ental, or economic factors. It is proposed that the second step, the position paper conducting the public hearing and requesting project approval, continue to be placed on the regular agenda. Following discussion, it was the consensus of the Board, with Member Lucey being absent, that in the future that routine positions papers initiating CAD's and confirming final assessments be placed on the Consent Calendar, and that positions papers conducting CAD public hearings and requesting project approval continue to be calendared on the regular agenda. Mr. Swanson thanked the Board for their input, stating that this is just one more step in streamlining the CAD process. 4) Mr. Batts, General Manager, announced that the District has been notified that it will receive the U.S. Environmental Protection Agency 2001 National Pretreatment Program Excellence Award. This is the second time in recent years that the District has won this prestigious award. The award will be presented on October 15, 2001 at the Water Environment Federation Annual Conference in Atlanta, Georgia. This award recognizes both the scope and the quality of the District's Pretreatment Program. Many employees, including those in Source Control, the Stormwater Program, Household Hazardous Waste, Planning, and Communication Services, contributed to the District's award-winning Pretreatment Program. 5) Mr. Batts, General Manager, announced that the District is advertising for bids for the Wilkinson Lane Sewer Relocation Project, DP 5472. The engineer's estimate for this work is $50,000. 6) Mr. Batts, General Manager, stated that as a result of construction activities for the Pleasant Hill Relief Interceptor Project, Phase 4, particularly along Ardith Drive, District Engineering Department staff have received telephone calls from ten residents to date claiming various degrees of construction- related damage. Staff is currently evaluating these claims. All claims will be tendered to the insurance carrier for Mountain Cascade, the contractor on the project, for ultimate resolution in accordance with the construction contract. Prior to start of construction, the District offered all the homeowners along the alignment, preconstruction surveys of their property at District expense. Seven of the homeowners reporting damage had their homes inspected, two declined, and one was outside the survey area. Those homes initially surveyed will be resurveyed to determine the extent and nature of any damage. 7) Mr. Batts, General Manager, reported that there has been a large operations and maintenance expenditure for repair of a furnace refractory. The furnaces are inspected after each major shutdown by an engineering and furnace supplier and an engineer representing the refractory contractor. Due to maintenance problems and the age of the furnace, additional repair work was recently needed, including replacement of the furnace breech wall refractory, replacement of the waste heat boiler expansion joint refractory, and insulation of ten of the rabble arms. The cost of this work was $71,000, approximately two-thirds of the cost was for the additional work that was over and above the normal internal refractory repairs. 8) Mr. Batts, General Manager, stated that the Environmental Laboratory Open House will begin tomorrow at 10:00 a.m. with the program planned for 11 :00 a.m. Senator Tom Torlakson, Assemblyman Joe Canciamilla, and San Francisco Bay Regional Water Quality Control Board Executive Officer 09 20 01 242 b. c. d. Loretta Barsamian will be speaking. The event will highlight the District's role in protecting the environment and preventing pollution. 9) Mr. Batts, General Manager, announced that the District conducted a household hazardous waste mobile collection event in San Ramon on Saturday, September 15, 2001. Senior Household Hazardous Waste Technician James Minor worked at the event with representatives of Philips Services Corporation. There were 211 customers, down from 456 customers last year. The District will be conducting a mobile collection event in Lafayette on October 13, 2001. 10) Mr. Batts, General Manager, stated that a site visit to view the Moraga and Orinda Crossroads Pumping Stations Renovation Project is scheduled before the next Board Meeting at noon on October 4, 2001. The Board Meeting will begin at 2:30 p.m. to allow sufficient time for the Board to see the improvements at the pumping stations. A site visit to the Dougherty Valley and San Ramon Pumping Station is being planned for late a Board Meeting in November. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) Member Boneysteele stated that an item was brought up by a Board Member earlier, and he asked if this would be an appropriate time to discuss it. President Hockett stated that it would be. With regard to the proposal to place a flag in the Board Room, Member Boneysteele stated that he understands and appreciates that we are all in a very tense situation and a state of shock along with the rest of the nation. Member Boneysteele asked that this matter be brought to the Board for a vote. Member Boneysteele stated that he regrets that this has caused some dissension on the Board. Member Boneysteele stated that it is not that he does not share an appreciation for the flag, but rather that he does not want to trivialize it. Member Boneysteele stated that he was not comfortable with the proposal and wanted to have an opportunity to state his reasons. President Hockett stated that this matter will be calendared on the next Board Meeting agenda. 2) Member Menesini reported on the September 17, 2001 Environmental Alliance Discussion Series at which Dr. Dan Hanel and Ms. Sheila Fish, of the Pittsburg Unified School District, addressed the topic of inspiring youth to become environmental leaders. Member Menesini stated that this program dovetails with the District's student education program. It is important to bring environmental issues to the attention of students of all ages. BREAK President Hockett declared a recess at the hour of 3:35 p.m., reconvening at the hour of 3:48 p.m. 09 20 01 243 a. 8. ENGINEERING AUTHORIZE THE GENERAL MANAGER to EXECUTE AN AMENDMENT TO THE AGREEMENT WITH WILSON. IHRIG & ASSOCIATES. INC. FOR PROFESSIONAL CONSULTING SERVICES IN CONNECTION WITH THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 Mr. Batts, General Manager, stated that as part of the encroachment permit process with the City of San Ramon, the District was requested to provide odor, noise, and vibration baseline monitoring at the site as well as vibration monitoring of the properties nearest the tunneling. These are now requirements of the encroachment permit and are designed to address the concerns of the nearby residents. It has been necessary to expand the scope of the monitoring program beyond what was originally anticipated. It was moved by Member Boneysteele and seconded by Member Nejedly, that the General Manager be authorized to execute an amendment to the agreement with Wilson, Ihrig & Associates, Inc. at an additional cost not to exceed $20,000 for professional consulting services in connection with the Dougherty Tunnel and Trunk Sewer Project, DP 5902, bringing the total agreement cost to $62,500. There being no objection, the motion was approved with Member Lucey being absent. 9. CORRESPONDENCE a. NOTE RECEIPT OF LETTER DATED SEPTEMBER 10. 2001 FROM REBECCA AND ARNOLD YOUNG COMMENDING DAVID CLOVIS. KIM GREER. AND OTHERS FROM CENTRAL CONTRA COSTA SANITARY DISTRICT Receipt was noted of the letter dated September 10, 2001 from Rebecca and Arnold Young commending David Clovis, Kim Greer, and others from Central Contra Costa Sanitary District for their assistance with a sewer overflow. It was moved by Member Menesini and seconded by Member Boneysteele, that staff be directed to respond to Rebecca and Arnold Young, thanking them for their cooperation; and that a commendation be drafted to Mr. Clovis and Ms. Greer, recognizing a job well done. There being no objection, the motion was approved with Member Lucey being absent. 10. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 6. 2001 It was moved by Member Menesini and seconded by Member Nejedly, that the minutes of September 6, 2001 be approved as presented. There being no objection, the motion was approved with Member Lucey being absent. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED SEPTEMBER 20. 2001 It was moved by Member Nejedly and seconded by Member Menesini, that the Expenditure List dated September 20, 2001, including Self Insurance Check Nos. 101780- 101781, Running Expense Check Nos. 134064-134310, Sewer Construction Check Nos. 23704-23739, Payroll Manual Check Nos. 48787-48796, and Payroll Regular Check Nos. 53779-53824, be approved as recommended. There being no objection, the motion was approved with Member Lucey being absent. 12. BUDGET AND FINANCE a. RECEIVE JULY 2001 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of July 2001, noting that expenditures were $184,000 less than budget, 09 20 01 244 representing a 6 percent favorable variance. Operations and maintenance revenues for the month of July 2001 were $74,000 or $35,000 less than budget. Ms. Ratcliff 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 3.89 percent to 6.77 percent. The latest interest rate as of April 2001 was 3.98 percent. The average yield of the District's LAIF account through July 2001 was 4.6 percent. President Hockett declared that the July 2001 Financial Statements were duly received. b. 2000-2001 CAPITAL IMPROVEMENT BUDGET YEAR END STATUS REPORT Ms. Ann E. Farrell, Director of Engineering, presented the 2000-2001 Capital Improvement Budget (CIB) Year End Status Report. Ms. Farrell stated that as the Board will recall from the workshops last year, one of staff's goals was to try to come closer to meeting the budgetary targets of each of the CIB programs. Most of the variances in the major project expenditures in Treatment Plant Program are the result of projects moving from one fiscal year to another. The net result is that $9.2 million was spent. This is $1,058,983 or approximately 10 percent less than projected, fairly close to budget and closer than in the past. Ms. Farrell stated that this 90 percent accomplishment rate is good for large projects. Major project expenditures in the Collection System Program of $11.7 million were $902,593 or 8.3 percent more than budget. As in the case of the Treatment Plant Program, this variance is the result of projects moving from one fiscal year to another. For example, the contractor on Pleasant Hill Relief Interceptor Project escalated the schedule so much of the work was done in May and June 2001 in order to meet the deadlines associated with start of school. Ms. Farrell stated that the San Ramon projects were not included in the Collection System Program accounting because they were such large numbers and they skewed performance. None of the San Ramon work was done in the 2000-2001 fiscal year due to litigation. If the San Ramon projects were included, the accomplishment rate would be only about 65 percent. In summary, Ms. Farrell stated that Capital Improvement Budget actual expenditures including the San Ramon projects were $28.1 million plus debt retirement of $1,431,000 for a total of $29,413,615. Actual Capital Improvement Budget revenues (excluding the Dougherty Tunnel and Trunk Sewer which was delayed because of litigation) of $18.9 million were $535,000 less than budget, representing a 2.8 percent unfavorable variance. Actual 2000-2001 Capital Improvement Budget revenues minus expenditures was negative $9.2 million, drawing the Sewer Construction Fund balance at June 30, 2001 down by $9.2 million to $38,077,000. We cannot continue to operate the Capital Program in a deficit mode. A combination of rate increases and debt financing will be considered and brought to the Board for review in the next several months. President Hockett declared that the 2000-2001 Capital Improvement Budget Year End Status Report was duly received. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 14. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS As requested earlier, an item relating to placement of flags in the Board Room will be calendared for consideration on the next agenda. 15. CLOSED SESSION a. 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. 09 20 01 245 At 4:05 p.m., President Hockett declared the closed session to discuss initiation of litigation as noted above. At 4:35 p.m,.,President Hockett concluded the closed session and reconvened the meeting into open's'ession. 16. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. 17. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at the hour of 4:36 p.m., to reconvene at 10:00 a.m. on Friday, September 21, 2001 for the District's Environmental Laboratory Open House and at noon on October 4, 2001 for a site visit to the Moraga and Orinda Crossroads Pumping Stations Renovation Project. ð~~). Jk~ President of the Board of Directors, . Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 09 20 () .1