HomeMy WebLinkAboutBOARD MINUTES 02-17-00 27 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 1 7, 2000 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 February 17, 2000. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Menesini, Hockett, Boneysteele, Lucey ABSENT: Members: None 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. RECEIVE CALIFORNIA WATER ENVIRONMENT ASSOCIATION. SAN FRANCISCO BAY SECTION ANNUAL AWARDS FOR 1999 AWARD NOMINEES . MECHANICAL TECHNICIAN OF THE YEAR - KENNETH HARRISON . SUPERVISOR OF THE YEAR - BILL HAMMETT . SUPERVISOR OF THE YEAR - DAN McCOWN . ENGINEERING ACHIEVEMENT - CAPACITY-PRIMARY AND SECONDARY TOGETHER AWARD RECIPIENTS . ELECTRICAL/INSTRUMENTATION PERSON OF THE YEAR - HAROLD NEWMAN . ENGINEERING ACHIEVEMENT - TREATMENT PLANT SEISMIC UPGRADE . PUBLIC EDUCATION - OUR WATER OUR WORLD PESTICIDE REDUCTION PROGRAM Mr. Charles W. Batts, General Manager, stated that he attended the California Water Environment Association Bay Section meeting at which these awards were presented. Mr. Kenneth Harrison, Maintenance Technician III, Mechanical, was nominated by his supervisor for the Mechanical Technician of the Year Award; and Mr. Bill Hammett, Electrical Shop Supervisor, and Mr. Dan McCown, Mechanical Supervisor, were nominated by their supervisors for the Supervisor of the Year Award. The Capacity-Primary and Secondary Together Project, Project Manager Gail Chesler, was nominated for the Engineering Achievement Award. This project involved a plant capacity study which integrated individual processes into a single treatment system to determine the capacity of our plant. The work was done by Brown and Caldwell Consulting Engineers under the Direction of Dr. Gail Chesler, Associate Engineer in the Environmental Services Division. In addition, the District received three awards. Mr. Harold Newman, Electrical Technician, received the Electrical/Instrumentation Person of the Year Award. Mr. Newman has been instrumental in the operation of the plant's electrical system and the start-up of the 02 17 00 28 Ultraviolet (UV) Disinfection process. The District received the Engineering Achievement Award for the Treatment Plant Seismic Upgrade, Project Manager Ba Than. Mr. Ba Than, Associate Engineer, managed this project and supervised a group of consultants to improve the plant treatment process to withstand a seismic event. The Public Education Award was received for the Our Water Our World Pesticide Reduction Program. This award recognizes the public education component of the District's Integrated Pest Management (lPM) Program. The team working on the Our Water Our World Pesticide Reduction Program included Community Affairs Manager Harriette Heibel, Pollution Prevention Program Superintendent Bart Brandenburg, Public Information and Production Assistant II Tim Tullis, Graphics Technician III Son Nguyen, Public Information and Graphics Supervisor Ken Grubbs, Source Control Coordinator II Earlene Millier, Landscape Specialist Jeanine Perasso-Kaczmarczyk, and Shift Supervisor Steve Colberg. President Lucey commended the nominees and award recipients for the excellent work they have done. 4. CONSENT CALENDAR It was moved by Member Boneysteele and seconded by Member Hockett, that the Consent Calendar, consisting of Item a., be approved. a. The Board was advised of the close out of 16 capital improvement projects with a net underrun of $933,881, seven percent of the total authorized budgets. This item was presented for the Board's information. No action was taken. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. BIDS AND AWARDS a. AUTHORIZE THE AWARD OF A CONSTRUCTION CONTRACT TO D.R. LEMINGS CONSTRUCTION FOR RECYCLED WATER - CUSTOMER CONNECTIONS BLANKET CONTRACT. NO. 018826 Mr. Batts, General Manager, recommended award of a construction contract to D.R. Lemings Construction for the blanket contract to perform work as required over the next two years to connect new recycled water customers. It was moved by Member Menesini and seconded by Member Hockett, that award of a contract for construction of the Recycled Water Customer Connections Bid Request, No. 018826, in the amount of $257,150 be authorized to D.R. Lemings Construction, the lowest responsible bidder. There being no objection, the motion was unanimously approved. Member Menesini stated that this is a landmark series of events and worthy of notice as recycled water customers are connected. Member Menesini asked if any sort of event or public acknowledgment is being planned, stating that this has been one of the District's best kept secrets. Mr. Batts stated that an event at the filter plant has been discussed. In addition to this project, the District is also moving forward with a joint recycled water project with East Bay Municipal Utility District. At some point, staff will come back to the Board to discuss the type of event the Board may wish to consider. b. APPROVE REQUEST FOR RELIEF OF BID FROM N.E. CARLSON CONSTRUCTION. INC.: AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO ARNTZ BUILDERS: AUTHORIZE PROFESSIONAL SERVICE AGREEMENTS FOR THE LABORATORY IMPROVEMENTS PROJECT. DP 7172 Mr. Batts, General Manager, introduced Mr. Don Berger, Associate Engineer, who reviewed recent project history for the Laboratory Improvements Project, DP 7172, 02 17 0'0"" .j ! 29 beginning with completion of the predesign study in September 1 998 through the bid opening in January 2000. Mr. Berger stated that as part of the bid process, the project was actively promoted to maximize bid expc:>sure..c Fourteen bids were received. Thirteen of the bids ranged in price from $4,310,791 to $4,903,000. These bids were very tightly packed and very close to the engineer's estimate. One bid was significantly less. The N.E. Carlson Construction, Inc. bid was $3,586,000, and Mr. Carlson has submitted a request for relief of bid because of a clerical error. District staff and District Counsel have reviewed this issue and determined that Mr. Carlson is entitled to bid relief. Mr. Berger stated that following the technical and commercial evaluation, Arntz Builders is the lowest responsible bidder with the bid amount of $4,310,791. Mr. Berger reviewed the experience and background of Arntz Builders, noting that they were the contractor for the District's Office Space Improvements Project completed in 1992. Arntz Builders is a family-owned business located in Novato with experience with laboratories and school science buildings. Mr. Berger stated that they are well qualified and staff would recommend award to Arntz Builders. Mr. Berger asked that the Board authorize two consulting agreements, one for construction support services with Michael Willis and Associates, and one for construction inspection with G.S. Dodson and Associates. Mr. Berger described the work that will be performed as part of these two agreements. Discussion followed with regard to utilizing District employees for construction inspection, potential liability for the District, and the liability insurance provided by the consultant, the ability of the inspectors to stop work in certain instances such as situations involving safety violations, and the experience of the consultant relating to the technical equipment which will be installed. Mr. Berger reviewed the project schedule beginning with issuance of the Notice to Proceed approximately March 1, 2000 through completion of the new laboratory building in March 2001 and conversion of the old laboratory space by July 2001. President Lucey stated that the estimate for the project was $5.1 million but bids came in at $6.1 million. President Lucey asked if it would be better to wait another year to see what happens in the current construction boom? Mr. Berger stated that there is a need for a new laboratory right away to perform advanced tests for National Pollutant Discharge Elimination System (NPDES) permit requirements. Mr. Berger stated that he cannot predict the economic future but interest rates are going up and contractor work is booming. Arntz Builders is a good contractor who does this type of work. With the exception of the N.E. Carlson bid, the bids were tightly grouped. Mr. Berger stated that for those three reasons it would be prudent to go forward with this project now. Member Menesini stated that he too has concern about spending money now; but if the District does not proceed with this project, it will be necessary to repair equipment and facilities in the existing laboratory. Any savings that might be realized by delaying the project would be discounted. Member Boneysteele stated that he does not think it is advisable once the need has been demonstrated and the financing is there to delay the project. Member Boneysteele endorsed going ahead with the project now. Member Nejedly stated that the substantial mistake in the N.E. Carlson bid leaves the District in a quandary because the engineer's estimate is $1 million less than the next low bid. Member Nejedly expressed his hope that the project goes without a hitch. It was moved by Member Menesini and seconded by Member Hockett, that the request for relief of bid from N.E. Carlson Construction, Inc. be approved and that staff be directed to return N.E. Carlson's bid bond; that award of a construction contract in the amount of $4,310,791 for construction of the Laboratory Improvements Project, DP 7172, be authorized to Arntz Builders, the lowest responsible bidder; and that the General Manager be authorized to execute professional service agreements for $236,000 with G.S. Dodson and Associates for inspection services and $180,000 with Michael Willis and Associates 02 17 00 30 to provide technical support services for construction of the Laboratory Improvements Project, DP 7172. There being no objection, the motion was unanimously approved. 7. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, distributed the 2000-2001 Budget Schedule. Mr. Batts stated that this year is the second year of the two-year Capital Improvement Budget. Rather than having a separate Board workshop, the relatively minor additions and adjustments to the Capital Improvement Budget will be presented during a regular Board Meeting. Staff will also be working with the Board on integration of the Proposition 21 8 notice requirements with the budget schedule. Mr. Batts asked that the Board consider increasing the dollar limit that requires that individual training and conferences be specifically approved by the Board of Directors, either in the Budget summary or by position paper. The limit has been $500 since 1978, more than 20 years. Mr. Batts recommended that the limit be increased to $1,000 beginning with the 2000-2001 Operations and Maintenance (O&M) Budget. Out-of-state training and conferences would still be delineated in the budget or by position paper. If the Board has no objection, this change will be reflected in the 2000-2001 O&M Budget. 2) Mr. Batts, General Manager, stated that at the last Board Meeting there was a discussion about starting a process of informing the public of both the services and accomplishments of the District, and the need to increase the Sewer Service Charge. One element of that process will be an article in the District's Pipeline newsletter. The draft Pipeline article distributed to the Board reflects Board input from that meeting. Mr. Batts introduced Ms. Harriette Heibel, Community Affairs Manager, who requested input from the Board on the draft Pipeline article. Member Menesini suggested that the graphic on page 1 show the balance as tilted since the whole point of the article is to show that the balance is not even and there are less revenues than projects and needs. Member Menesini also suggested that the graphic include some of those needs such as the laboratory, new regulations, replacement of sewers, and so on. Member Menesini complimented staff for mentioning some of the costly projects but suggested that the latter part of the article be moved to the front. Then after describing the achievements, tell the public that this all costs money and suggest that the Board and staff are studying a need for supplementing the operating and capital funding. Member Menesini also suggested that when we mention on the back page about the National Pollutant Discharge Elimination System (NPDES) permit renewal and the new laboratory, it be described as being needed for the elimination of pollution, tying the new laboratory and new regulations together. Member Menesini stated that he understands that residents contribute more toxics in the District service area than industry; but rather than saying that, perhaps we could say that all of us must watch for pollution or something along those lines. Member Hockett stated that the article and newsletter were very well done. The information seemed to flow. A great deal of detail was given and a rationale of the District needs that must be met was given as well. Member Hockett stated that she had no changes to the article. Member Boneysteele stated that he particularly liked the graphic showing the sewer system below the manhole. Mem ber Nejedly stated that rather than saying, "... rates may need to be raised," we should say we need more revenue. Member Nejedly also 02 17 00 3:1 suggested that instead of saying "remodeling" the pumping station we should talk about landscaping for the pumping station. President Lucey stated that the majority of the newsletter is outstanding but the tenor is too apologetic and too negative. President Lucey suggested that the message be given that the services provided by the District are a good deal and that the Board and staff have done a good job. Highlight what the District has done in the past by keeping rates flat and what we must do in the future. President Lucey stated that he does not know of any other public agencies that have not raised rates for six years. Mr. Batts thanked the Board for their comments and indicated that the draft newsletter will be revised based on the Board's input. 3) Mr. Batts, General Manager, stated that yesterday, the San Francisco Bay Regional Water Quality Control Board (RWQCB) voted to issue the Tosco revised National Pollutant Discharge Elimination System (NPDES) permit. As discussed at previous Board Meetings, this permit is proposed to be the template for all future point source permits that discharge into San Francisco Bay. Staff will be discussing these new permit issues with the Board and the RWQCB as negotiations begin for the District's NPDES permit. The main points of the RWOCB's permit actions will be no increase in mass discharges which translates to possible growth limits, no dilution credits which will mean a greater degree of treatment, and concern about anti- backsliding and whether the RWQCB can legally change limits in the future. For the District these could result in greater treatment costs, possible growth limits, and the District being put in a position of constant permit violation. Mr. Batts stated that with the Board's consent, staff will file a formal letter of appeal on the Tosco permit so the District's concerns can be brought to the RWQCB. Discussion followed with regard to the ways to advise other agencies and the public about the issues and potential costs involved. Following discussion, it was the consensus of the Board, that letters be sent to the State Water Quality Control Board and the RWQCB with copies to the cities in the District's service area. 4) Mr. Batts, General Manager, stated that the San Ramon (Larwin) Pumping Station has recently become the focus for community activists as the District prepares to construct a pipeline through their neighborhood in San Ramon as part of the Dougherty Valley project. The District delayed its plan to improve the appearance of the pumping station scheduled for last year and this now provides a convenient target for neighborhood frustration. The anti-growth sentiment will continue through the sewer line and pumping station project underscoring the need for excellent construction management and good community relations. Mr. Batts introduced Mr. James M. Kelly, Director of Plant Operations, who stated that the Board, on a trip to the San Ramon Pumping Station, identified some deficiencies, staff developed proposed improvements, and $35,000 was authorized in August 1998 to improve the gates and fences, install pavers, and replace some front junipers with boulders and plants. Some steps have been taken to improve the pumping station's appearance in the past two years with daily trash patrols, professional tree trimming, professional weed and pest abatement, and intense Plant Operations Department (POD) Buildings and Grounds cleanup two times per year. Recently, District staff met with nearby homeowners to learn of their concerns. The junipers are being removed as we speak. In addition, two trees will be cut down tomorrow; soil and boulders will be placed in front of the fence within the next two weeks; the fencing and gate will be upgraded within a month; and the irrigation for the front is being repaired. Staff will 02 00 17 32 02 meet with the adjacent homeowners on plant preference and short-term improvements. Short-term planting and improvements should be completed within one to two months. Mr. Kelly stated that noise and odor issues were raised at the recent neighborhood meeting. Staff has taken sound readings in the area and they are low; however, installation of a baffle fence would reduce the noise from a fan on the north side of the pumping station. The baffle fence will be installed within a month. Odor control chemical dosage in the wet well has been increased. These efforts will complete most of the short-term efforts that staff has committed to do. The pavers will not be done now because the future sewer project would remove the pavers in approximately six months. Additional work will be done to improve the landscaping and building appearance as part of this sewer project. Mr. Kelly stated that the Plant Operations Department staff will work with the Engineering Department to reduce the impacts of the sewer and pumping station projects on the neighborhood and in developing the additional improvements for the pumping station landscaping and building. Staff will keep the Board informed on the status of these efforts. Following discussion of further coordination with the neighbors, the Board thanked Mr. Kelly for his report. 5) Mr. Batts, General Manager, stated that from February 10 to 14, 2000, more than four inches of rain fell in some areas of the District. District facilities operated flawlessly. At the pumping stations, diesel pumps came on to handle the flow. There were no problems at the pumping stations or at the plant. At one point during the day, the flows reached more than 200 MG. Approximately 10 MG was put into the holding basins behind the plant. The Collection System Operations (CSO) Department received several calls. There were two overflows in the Pleasant Hill area, in an area that had already been identified as capacity limited and will be repaired as part of the Pleasant Hill Interceptor Project. There were no problems in Martinez due to this Board's authorization of work in that area and the work done by the City of Martinez. There were no overflows in South Orinda, underscoring the real benefit of the South Orinda Sewer Improvements Project. Many areas where landslides have occurred in the past held up well. However, there are two areas, one on Hartz Avenue in Danville and one in the St. Mary's right of way on Bollinger Canyon in Moraga, where problems occurred. Those will be repaired as soon as the areas dry somewhat. Mr. Batts stated that all in all during the heavy rain storms the District performed very well. This is due to the hard work of the District employees, the Board support of the capital improvements, and the planning and oversight of the managers. The Board acknowledged the exceptional performance and commended the employees for their hard work. 6) Mr. Batts, General Manager, stated that the District must publish a notice each year of those commercial and industrial dischargers to the District in significant non-compliance with Federal source control regulations and rules. Mr. Batts introduced Mr. Tim Potter, Source Control Program Superintendent, who distributed a list of businesses and a descriptive write up on the nature of the violations. In accordance with previous direction from the Board, the list has been divided into two categories: 1) Discharge Quality Violations, and 2) Reporting Violations. Mr. Potter stated that this year staff would propose that the District take out a newspaper advertisement recognizing permitted businesses that were in consistent compliance for 1999. This would be published in a different section of the newspaper and in a different format than the violations. Mr. Potter stated that the District is not required to do this, but it is hoped that it will be an . additional incentive for good performance. If it is successful, staff will recommend that it be done in future years. 17 00 33 Following discussion, the Board endorsed the proposed notice recognizing businesses in consistent compliance. 7) Mr. Batts, General Manager, announced that an exchange of property between Conco Cement Company and the District is being explored for mutual benefit of the two entities. This exchange will allow Conco to build a structure they wish to build and it will provide the District with better access to its property. A position paper will be calendared for Board consideration. 8) Mr. Batts, General Manager, informed the Board that under the District's Cogeneration unit maintenance contract with Solar Turbines, the turbine unit will be replaced with a like unit at the end of the five-year contract. This replacement will take place within the next few months. The cost of this contract is $175,000 per year. The District will also budget to extend the contract for another five years in order to maintain the unit's high run time and efficiency. Member Hockett left the meeting at approximately 3:40 p.m. b. c. d. 9) Mr. Batts, General Manager, introduced Mr. Jim Belcher, Senior Engineer, who stated that in July 1999, the Board authorized staff to enter into a one- year agreement if the price of natural gas dropped below $2.70 per decatherm in the next six months. Prices did not fall, and in November the General Manager provided an update to the Board. Prices have still not dropped below $2.70 per decatherm. Experts say the market is confused and volatile and they recommend waiting at least 30 days before entering into any agreement. Staff would propose to come back to the Board to ask that the Board again authorize the General Manager to enter into a one-year or two-year contract if prices drop to an acceptable level. Mr. Belcher stated that the District continues to purchase landfill gas on a month-to month basis. Negotiations continue with Acme Fill. Staff hopes to bring a landfill gas agreement to the Board for consideration in the near future. 10) Mr. Batts, General Manager, reported that staff will be making a presentation on the Dougherty Tunnel and Trunk Sewer Project to the San Ramon City Council on February 22, 2000. Staff will be informing the City Council of the extent of the project, type of work, hours of work, and so on. It is expected that there will be people present who oppose the sewer going through this area. Discussion followed with regard to District plans to repave the streets after construction and other efforts to mitigate impacts on the neighborhood. Mr. Batts stated that the project will impact the lives of the residents. On January 26, 2000 a public meeting was held to let the public know what to expect and to take public comments and incorporate them into the project. Staff is working to address the issues raised at that meeting. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) President Lucey referred to an article in the Contra Costa Times indicating that Contra Costa County is considering new regulations for installation of 02 00 17 34 new septic tanks and repair of existing individual septic systems. President Lucey requested that a District representative attend the meetings in Martinez and Lafayette and report back to the Board. 2) Member Menesini announced that the February 28, 2000 Environmental Alliance discussion series will feature the CALF ED Program. Anyone interested is invited to attend. 9. TREATMENT PLANT a. BOARD ACCEPTANCE OF THE 1 999 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM. COLLECTION SYSTEM OVERFLOW MONITORING PROGRAM. AND THE RECYCLED WATER QUALITY AND DISTRIBUTION REPORTS Mr. Batts, General Manager, stated that the District often does not take time to celebrate its successes. Treating wastewater is a core business of the District and the regulatory agencies are the District's principal indirect customers. Mr. Batts stated that this report reflects the outstanding work of numerous employees, the support of a concerned Board, and the fulfillment of the contract with the District's ratepayers to protect the environment. This report shows no water quality violations, the lowest number of overflow events ever reported by the District, and the ability of the District to deliver consistent quality recycled water. This is the second year of 100 percent compliance, an exceptional record. Mr. Batts noted that there was an error in the position paper relating to recycled water quality and distribution. The position paper stated that 89.6 million gallons were distributed. That number should be 93.4 million gallons. Mr. Batts introduced Mr. Doug Craig, Plant Operations Division Manager, who stated that the National Pollutant Discharge Elimination System (NPDES), Collection System Overflow Monitoring Program, and Recycled Water Quality and Distribution Reports have been prepared for submission to the California Regional Water Quality Control Board (RWQCB). These annual reports are the District's report card, summarizing the calendar year performance and compiling data from the twelve monthly reports. The report is broken down into four categories: 1) Treatment Plant Waste Characteristics and Loading, 2) Receiving Water Characteristics, 3) Sewer System Overflows, and 4) Recycled Water Report. Mr. Craig reported that in 1999, the total flow treated was 16.7 billion gallons, the average daily flow was 45.8 million gallons, and the peak hourly flow was 168 million gallons. This peak hourly flow has already been exceeded this year. Mr. Craig stated that 15,000 analytical tests were completed in 1999 requiring approximately 11,000 hours of laboratory work. There was 100 percent compliance with NPDES permit requirements. Mr. Craig stated that there were 22 reportable sewer collection system overflows (overflows exceeding 100 gallons in volume). In 1998 there were 40 reportable overflows. Of the 22 reportable overflows, six exceeded 1,000 gallons in volume. In 1998 there were ten overflows that exceeded 1,000 gallons in volume. The causes for the overflows included root intrusion, grease, debris, and wet weather surcharge. Mr. Craig reported that the District has 13 major recycled water customers, delivering 93.4 million gallons of recycled water with a peak month usage of 16.5 million gallons in July. There was 100 percent compliance with Title 22 requirements. No customer complaints were received. Mr. Craig stated that there will be some changes in the year 2000 reporting. Electronic reporting will begin with the January 2000 report now that the Laboratory Information Management System (LlMS) implementation is completed. The new NPDES permit will present additional challenges with more stringent requirements and Senate Bill 709 requires mandatory fines for any violations. Because of the significantly more stringent requirements, staff is very concerned about the District's ability to continue its 100 percent compliance record. In closing, Mr. Craig acknowledged all those who helped achieve the 1999 outstanding report and compliance record including the operations staff, maintenance staff, collection system crews, engineering staff, public information staff, and the Board of Directors. Mr. Craig recommended that the Board accept the 1999 Regional Water Quality Control Board annual report. It was moved by Member Menesini and seconded by Member Boneysteele, that the 1999 National Pollutant Discharge Elimination System, Collection System Overflow Monitoring 02 17 rrJJ'\!\ Un; ~) , 35 Program, and Recycled Water Quality and Distribution Reports be accepted, and that staff be commended on a job well done. There being no objection, the motion was unanimously approved. ' . 10. APPROVAL OF MINUTES a. MINUTES OF JANUARY 6. 2000 b. MINUTES OF JANUARY 27. 2000 It was moved by Member Menesini and seconded by Member Nejedly, that the minutes of January 6, 2000 and the minutes of January 27, 2000 be approved as presented. There being no objection, the motion was unanimously approved. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FEBRUARY 17. 2000 Member Menesini, Chair of the Budget and Finance Committee, stated that he and Member Boneysteele reviewed the expenditures and found them to be satisfactory. Member Menesini stated that reviewing District expenditures and learning where District funds are spent is one of the better learning experiences the Board has. Member Menesini stated that Director of Administration Paul Morsen and Controller Debbie Ratcliff are very knowledgeable. With regard to District expenditures and participation in the California Association of Sanitation Agencies (CASA), Member Menesini suggested that CASA be encouraged to provide more informative and useful programs for directors. Currently the managers' program is excellent but more could be done with regard to the directors' program. It was moved by Member Menesini and seconded by Member Boneysteele, that the Expenditure List dated February 17, 2000, including Self Insurance Check Nos. 101597- 101600, Running Expense Check Nos. 122937-123172, Sewer Construction Check Nos. 21926-21964, Manual Payroll Check Nos. 48633-48645, and Regular Payroll Check Nos. 50700-50765, be approved as recommended. There being no objection, the motion was unanimously approved. 12. BUDGET AND FINANCE a. RECEIVE THE 1999-2000 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31. 1999 Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the six months ended December 31, 1999, reporting that revenues of $1 5,688,000 were $622,000 greater than budget, representing a 4.1 percent favorable variance. For the six months ended December 31, 1999, actual expenditures of $14,722,000 were $1.6 million below budget, representing a 10 percent favorable variance. At June 30, 2000 revenues over expenditures results in a projected budget deficit of $1.3 million. Ms. Ratcliff stated that at June 30, 2000, revenues are projected to be on budget. Ms. Ratcliff reviewed the significant expense variances projected at June 30, 2000, and noted that expenditures are projected to be at or below budget at year end. Following discussion, President Lucey declared that the 1999-2000 Operations and Maintenance Budget review for the six months ended December 31, 1999 was duly received. b. RECEIVE DECEMBER 1999 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund account with interest rates ranging from 4.9 percent to 6.1 percent. The latest interest rate as of December 1999 was 6.1 percent. The average yield of the LAIF account through November 1999 was 5.4 percent. 02 17 00 36 Mr. Jarred Miyamoto-Mills, Principal Engineer, presented the 1999-2000 Capital Improvement Budget (CIB) Mid Year Status Report. Mr. Miyamoto-Mills stated that since the District went to a two-year CIB, periodic status reports have been cut back to mid- year and year-end rather than quarterly. Mr. Miyamoto-Mills reviewed the major Treatment Plant and Recycled Water Program expenditures, noting that the current year end projection is $7.8 million, which is $1 million less than the CIB estimate. All other Treatment Plant and Recycled Water projects are projected to be approximately $1 million over the CIB estimate. It is projected that the Treatment Plant and Recycled Water Program will be approximately on budget at June 30, 2000. Mr. Miyamoto-Mills reviewed key project expenditures for the Collection System and General Improvements Program noting that the current projection is $4.4 million, or $7 million less than the CIB estimate. The Martinez East Side Trunk Sewer Project accounts for approximately $3 million of the $7 million difference. The contractor worked hard and received payments in the previous fiscal year which were projected for the current fiscal year. Mr. Miyamoto-Mills stated that differences between current projections and the CIB estimate are generally the result of shifts in expenditures between fiscal years and not usually changes in projected costs. Mr. Miyamoto-Mills stated that CIB expenditures of $20 million plus debt retirement of $865,000 total $20.7 million, approximately $7.1 million less than the CIB estimate. CIB revenues are projected to be $21.1 million or $634,000 less than the CIB estimate, for projected net revenues of $444,000 at year end. At July 1, 1999, the Sewer Construction Fund balance was $42,583,000 plus projected revenues of $21,186,000 less projected expenditures of $20,742,000 less debt retirement of $864,000 for a projected balance at June 30, 2000 of $42,163,000. President Lucey thanked Ms. Ratcliff and Mr. Miyamoto-Mills for their reports and declared that the December 1999 Financial Statements were duly received. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 14. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 1 5. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned thij meeting at the hour of 4: 17 p.m. President of the Board of Direc rs, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se ray of the Cen ra Co tra Costa Sa . ry District, County of Contra Costa, State of California 02 17 O~. 0' -~ ,'~ ,,:I' , ..' I, '