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HomeMy WebLinkAboutBOARD MINUTES 06-01-00 103 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 1, 2000 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on June 1, 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 Ms. Christa Friehofner, resident of San Ramon, addressed the Board relative to the proposed Estero Drive route for the Dougherty Tunnel and Trunk Sewer Project. Ms. Friehofner stated that after attending several recent District Board Meetings she felt the Board was finally hearing some of the neighborhood concerns. Ms. Friehofner stated that the District is now suing the City of San Ramon. Estero Drive to the San Ramon (Larwin) pumping station is a no win situation. Ms. Friehofner asked that the Board keep working on the alternative route via Bollinger Canyon Road. Ms. Friehofner stated that if this goes to the Courts and the District prevails, the District will have its gravity sewer and will be responsible for diminishing the quality of life in a neighborhood and building the biggest pumping station in Contra Costa County. Ms. Friehofner stated that she and her neighbors will be betrayed but at least they will be able to sleep at night because their consciences will be clear. Ms. Friehofner stated that it will be her and her neighbors' civic duty to let the people know of this travesty. Ms. Friehofner stated that she will not stop until everyone on this Board does what is right. Ms. Friehofner asked the Board to do what is right and do not proceed with the Estero route. President Lucey thanked Ms. Friehofner for her comments. 3. CONSENT CALENDAR It was moved by Member Boneysteele and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through c., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The President of the Board of Directors and the Secretary of the District were authorized to execute Quitclaim Deeds to Gerald P. Fritzke and Irene E. Fritzke, David Scotting and Linda Scotting, and Charlotte F. Nachtrieb for two easements in the Walnut Creek area for District Job 539, Parcels 1 and 2; staff was directed to record said Quitclaim Deeds with the Contra Costa County Recorder; and Resolution Nos. 2000-045. 2000-046. and 2000-047 were adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Nejedly, Menesini, Lucey None None 06 01 00 104 b. The General Manager was authorized to execute an amendment to the encroachment license agreement with Union Pacific Railroad Company for the M-4 Forcemain serving Martinez, DP 1380; and Resolution No. 2000- Q.4.8 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Nejedly, Menesini, Lucey None None c. The substitution of the listed subcontractor, Concord Drywall, with a new subcontractor, North Bay Drywall & Plastering, was authorized for metal framing and drywall work on the Laboratory Improvements Project, DP 7172. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Nejedly, Menesini, Lucey None None 4. HEARINGS a. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE 2000- 2001 OPERATIONS AND MAINTENANCE BUDGET AND THE SELF INSURANCE FUND BUDGET AND FOR THE ESTABLISHMENT OF THE 2000-2001 SEWER SERVICE CHARGE RATES. AND ON PLACING CURRENT AND DELINQUENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Mr. Charles W. Batts, General Manager, stated that the proposed Operations and Maintenance (O&M) Budget is the culmination of considerable planning, three months of effort, and hundreds of hours of staff time. This budget reflects the priorities of the District as discussed with the Board. They are cost effective operations, good customer service, and value to District ratepayers. The Budget represents a 5.9 percent increase over last year's O&M Budget, and requests an increase in the Sewer Service Charge, which has remained constant since 1994. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that the O&M Budget before the Board was calculated using a $185 Sewer Service Charge allocation to O&M. This is based on a $28 increased allocation of Sewer Service Charge revenue split between an increase in the Sewer Service Charge and a reallocation from the Sewer Construction Fund to the O&M Fund. Ms. Ratcliff reviewed the 1998-1999 actual, 1999- 2000 projected, and 2000-2001 budgeted revenues, expenses, and reserves as presented in detail in the budget document previously distributed to the Board. Revenues for 1999- 2000 are projected to be $31,924,000 at fiscal year end compared to 2000-2001 budgeted revenues of $36,372,000. Expenses for 1999-2000 are projected to be $33,387,000 at fiscal year end compared to 2000-2001 budgeted expenses of $35,861,000. Revenues for 1999-2000 were budgeted at $31,618,200 compared to 2000-2001 budgeted revenues of $36,372,056 which represents a 15.04 percent increase. This is due primarily to the $28 increase in Sewer Service Charge revenues going to O&M. Expenses for 1999-2000 were budgeted at $33,853,178 compared to 2000-2001 budgeted expenses of $35,861,186 which represents a 5.94 percent increase. This increase is mainly due to increases in the area of salary and benefits. In 1998-1999 there was a $1.5 million deficit in reserves. Again in 1999-2000 a deficit of $1.5 million is projected, decreasing the fund balance at June 30, 2000 from $5,725,000 to $4,262,000. In 2000-2001, an increase in reserves of $511,000 is budgeted, bringing the fund balance to $4,773,000 at June 30, 2001. Ms. Ratcliff reviewed the key labor 06 01 00 105 costs imbedded in the 2000-2001 O&M Budget which make up $1,341,000 of the $2 million increase in expenses, and highlighted the key increases in the remaining line items. Ms. Ratcliff reviewed the 2000-2001 Self Insurance Fund Budget, stating that revenues are budgeted at $520,000 and expenses are budgeted at $782,000, resulting in a decrease in reserves of $262,000. At June 30, 2001 the Self Insurance Fund balance is budgeted to be $4.8 million. Discussion followed with regard to the earthquake insurance premium and deductible or self insured retention. Mr. Batts, General Manager, provided an overview of the O&M Budget and Sewer Service Charge rate setting process. Mr. Batts stated that the combined total of the O&M and Capital Improvement Budgets is approximately $60 million annually. Strategic Planning was used as a way to control District costs, with attention to cost and revenue projections, the impact of regulations, and continued focus on customer service. On January 27, 2000, a Board workshop was held at which five-year projections were reviewed, the need for a Sewer Service Charge increase was discussed, and Board input into the budgets was received. The District's Sewer Service Charge has remained constant at $188 since 1994 when it was adjusted due to the loss of a portion of the ad valorem tax revenue. Over the past six years, significant efforts have been made to avoid increasing the Sewer Service Charge including cost reduction programs, staff consolidations, revenue enhancement, and spending down reserves. In addition, the Capital Improvement Program expenses have been reduced in part because many of the large capital projects have been completed and in part because staff has tried to make realistic judgments about how long large capital projects can be deferred. Funds required are defined as the funds needed in the District's temporary investment accounts at the beginning of each fiscal year to cover expenditures in both the O&M and Capital Improvement Budgets before the first installment of Sewer Service Charges and property taxes are received from the County tax rolls. The proposed 2000-2001 O&M Budget is based on a $28 increase in the Sewer Service Charge allocated to the O&M. A public notice was sent out proposing up to a $24 increase in the Sewer Service Charge. At the Board's request, two other options were developed. Mr. Batts reviewed Sewer Service Charge alternatives for a $24 (12.8 percent) increase, an $18 (9.6 percent) increase, and a $12 (6.4 percent) increase. Mr. Batts emphasized that each of these alternatives requires that the difference between the increase approved and $28 be made up by taking funds from the Capital Improvement Program to meet O&M expenses. District staff recommends that the Board approve a $24 increase in the Sewer Service Charge and that the remaining $4 be reallocated from the Sewer Construction Fund to the O&M Fund. This would allow the Board to address O&M needs in a timely manner, maintain a healthy capital component to meet Capital Improvement Program requirements, and cushion somewhat the impact of losing ad valorem taxes in the future. In response to questions from the Board, Mr. Batts stated that it is likely that enterprise districts such as Central Contra Costa Sanitary District will lose ad valorem taxes in the future. Mr. Batts provided a Sewer Service Charge comparison of 12 neighboring agencies, ranging from a high of $364 to a low of $109. There are currently four agencies with lower Sewer Service Charge rates than the District. If the Board approved a $24 increase, there would be five agencies with rates lower than the District. Mr. Batts stated that a notice of the proposed Sewer Service Charge increase of up to $24 was mailed to 110,592 property owners using a mailing list generated from information from the Contra Costa County Assessor's Office. The District received a total of 146 responses. Of those 146 responses received, 31 were written responses received either by U.S. mail or electronic mail, and 115 were telephone responses. Of the 146 responses received, 17 were opposed to the proposed Sewer Service Charge increase of up to $24, 17 requested differential rates, and all others total 112. The all others category includes such things as address corrections, information requests on District programs, questions about the area served, the method used in calculating the bill, and the impact on individual pieces of property. 06 01 00 106 At 2:43 p.m., President Lucey opened the public hearing to obtain public comment regarding the approval of 2000-2001 O&M Budget and Self Insurance Fund Budget and establishment of the 2000-2001 Sewer Service Charge rates. Mr. Jerrold Russell Froland, resident of Martinez, addressed the Board in opposition to the proposed Sewer Service Charge increase. Mr. Froland requested that the Board consider elderly people who are on a fixed income and who have owned property for years. Mr. Rich Cunningham, resident of Lafayette, addressed the Board in support of the proposed Sewer Service Charge increase. Mr. Cunningham stated that he is both a homeowner and a professional in the wastewater industry. Mr. Cunningham requested that the Board consider the highest contribution to the capital program, stating that the collection system he works for and manages is starved for capital. The temptation to yield to taking capital to fund O&M was overwhelming. Discussion followed with regard to the District's Ten Year Capital Improvement Plan, the importance of maintaining pipelines and plant facilities to protect the health and welfare of the public, and the need to invest in the maintenance of infrastructure. Mr. William T. Gripp, resident of Orinda, addressed the Board relative to the proposed Sewer Service Charge increase. Mr. Gripp stated that he does not object to an increase in Sewer Service Charge rates but he would like to be served by the sewer system. Mr. Gripp stated that he has paid Sewer Service Charges for years but he has been unable to secure the necessary approvals to construct a pipeline or pumping station to connect his property to the District sewer system. Mr. Gripp described the efforts he has made and the problems he has encountered. In response to questions from the Board, Mr. Gripp stated that he is billed for Sewer Service on his property tax bill. President Lucey stated that Mr. Gripp should not be charged if he does not receive sewer service. President Lucey requested that staff look into this and report back to the Board. It was noted that the following written correspondence was received and considered by the Board: 06 1 ) Letter dated March 14, 2000 from Mr. Todd W. Lockwood, Lockwood Property Group, Pleasant Hill, requesting a billing system for residential users based on water usage. 2) Letter dated April 6, 2000 from E. F. Holtmann, Lafayette, opposing the proposed increase. 3) Letter and electronic mail dated April 8, 2000 from Mr. and Mrs. J. Pittman, Walnut Creek, requesting information on District expenditures and salaries. 4) Letter dated April 9, 2000 from Mr. and Mrs. Dennis Sewell, Walnut Creek, opposing the proposed increase. 5) Postcard dated April 10, 2000 from Mr. Peter Muller, Orinda, requesting a breakdown of costs and programs. 6) Letter dated April 11, 2000 from Mr. and Mrs. Austin Givens, Alamo, opposing the proposed increase. 7) Letter dated April 12, 2000 from Mr. Althan Magganas, Pinole, expressing dissatisfaction with the proposed increase and manner of collecting the fees. 8) Letter dated May 7, 2000 from Mr. Robert L. Mills, Orinda, requesting that connection fees be increased rather than the Sewer Service Charge. 01 00 107 9) Letter dated May 4, 2000 from Mr. Raymond Gillie, Walnut Creek, agreeing with th~ need for an inflationary increase but questioning the portion of the proposed increase for expansion. 10) Electronic mail dated April 5, 2000, from Mr. George Bassett opposing the proposed increase. 11 ) Electronic mail dated May 10, 2000 from Terry-Plys opposing the proposed increase. There being no further comments, President Lucey closed the public hearing at the hour of 3:05 p.m. and returned the matter to the Board for deliberation. Member Menesini stated that having read all of the objections to the proposed Sewer Service Charge increase, it strikes him that none of the objections hit on what the District's real problems are. The District has a real and definite concern about the health of the community. It is only through the removal of waste that the community will continue to survive. No matter what rate is approved, the Board's real interest is not to hit any particular community or particular segment of the community like its senior citizens or young people just coming up, with a tax burden. The proposed increase is a modest amount for the service. Member Nejedly stated that at the Board workshop staff recommended that the Sewer Service Charge be increased by $24. There has not been an increase in six years. Doing repairs, and protecting the health and welfare of the public is important. A $12 increase keeps the District at a point so it can operate and at the same time gives a year to year look at the financial needs of the District. Member Nejedly stated that he thinks a $12 increase is fair to the ratepayers of the District. The District may lose its ad valorem tax revenue but it may not. The District can raise its rates yearly. It mayor may not be necessary to do that. Member Nejedly stated that he supports a $12 increase. Most of the letters from the public were not related to the proposed rate increase but to other concerns about how the charges are calculated and billed and the fact that the District charges everyone the same. Member Nejedly stated that he tried to contact Mr. Magganas several times. He was concerned that he could not charge for the amount of sewage actually produced by each tenant. Member Nejedly stated that he feels that it is up to the property owner to determine how or if the costs will be collected from tenants similar to the way garbage service is billed and collected. Member Nejedly stated that he agrees that the Sewer Service Charges should be collected on the tax roll. The District is not a bill collector. There is only one delinquent account this year. That shows that the system is working. Member Hockett stated that based on the ability of the District to project out the immediate and future needs of the District and the information that was presented, she would favor a $24 increase. That would allow the District to keep going on the same track with capital projects and environmental safety, and would avoid spending more money to re-notice the public again next year. Along with the $24 increase, Member Hockett suggested that the District look at low income and senior citizen rates. In this country in terms of escalating costs, it is unlikely that anything will go down. Member Hockett stated that she would like to propose that something go down for people on limited incomes. President Lucey stated that staff has done an amazing job of getting the numbers and educating him. He has been educated as to where these dollars go and what they are spent for. President Lucey stated that Member Hockett's idea that there should be a break for those on limited incomes is a good one but today is not the day for that. President Lucey stated that he favors the $12 rate increase because he believes that is what gives the District's ratepayers the biggest voice. The District can continue its Capital Improvement Program but just must come back to increase rates again next year. The cost to re-notice the public is worth it. This would create an administrative burden but it is one the District should bear for its ratepayers. 06 01 00 108 Member Boneysteele stated that he would think that the easiest thing to do considering the lack of opposition would be to approve the proposed $24 increase and put it aside for three years. Member Boneysteele stated that with a $1 2 increase there would not be a temptation to engage in new programs or affect the economics that there would be otherwise. Member Boneysteele stated that he thinks it would be well to let the public enjoy some of the benefits of the reserves. Mr. Kenton L. Aim, Counsel for the District, distributed a draft ordinance increasing the Sewer Service Charge rates by $12 (6.4 percent), and requested that the Board read the ordinance and the findings enumerated in the ordinance. It was moved by Member Nejedly and seconded by Member Boneysteele, that the 2000- 2001 Operations and Maintenance and Self Insurance Fund Budgets be approved as recommended; that a $12 increase be approved, setting the 2000-2001 Sewer Service Charge at $200; and that Ordinance No. 213 and the findings included therein, be adopted establishing the 2000-2001 Sewer Service Charge rate schedule. Motion approved on the following roll call vote: AYES: Members: Nejedly, Boneysteele, Menesini, Lucey NOES: Members: Hockett ABSENT: Members: None At 3:22 p.m., President Lucey opened the public hearing to obtain public comment regarding collection of the 2000-2001 Sewer Service Charges on the County tax roll. It was noted that the following written correspondence was received and considered by the Board: 1 ) Letter dated April 12, 2000 from Mr. Althan Magganas, Pinole, expressing dissatisfaction with the manner of collecting Sewer Service Charges. There being no further comments, President Lucey closed the public hearing. It was moved by President Lucey and seconded by Member Hockett, that Resolution No. 2000-049 be adopted, authorizing collection of the 2000-2001 Sewer Service Charges on the County tax roll. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Nejedly, Menesini, Boneysteele None None At 3:24 p.m., President Lucey opened the public hearing to consider public comment regarding collection of delinquent Sewer Service Charges on the County tax roll. There being no comments, President Lucey closed the public hearing. It was moved by Member Menesini and seconded by President Lucey, that Resolution No. 2000-050 be adopted, overruling protests and adopting the report of delinquent sewer service charges pursuant to Section 5473 of the Health and Safety Code. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Hockett, Boneysteele None None 06 01 00 None a. 109 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 6. REPORTS GENERAL MANAGER 1 ) Mr. Batts, General Manager, stated that the Board has been advised of the ongoing process surrounding the renewal of the District's National Pollutant Discharge Elimination System (NPDES) permit. The time frame for Regional Water Quality Control Board (RWQCB) approval of the permit appears to have been delayed by the impact of additional regulatory guidance. Mr. Batts introduced Dr. Gail Chesler, Associate Engineer, who stated that the District filed an application for renewal of its NPDES permit in November 1999. The permit was expected to be heard at the May 2000 RWQCB meeting. The RWQCB staff has produced an administrative draft and discussion has been held between District staff and RWQCB staff. However, the California Toxics Rule and State Implementation Plan were promulgated in mid-May and late April respectively and regulatory confusion now reigns. All Tentative Orders have been removed from the June 21 RWQCB agenda. The District has received a letter from the RWQCB indicating that the District should continue to use its current permit until they can process the new permit. That is now expected to be scheduled in September 2000 or later. Dr. Chesler stated that some issues remain, including the District's request for effluent discharge limit increase, setting the cyanide limit, and the frequency of monitoring which will be required. Discussion followed with regard to species that live near the District outfall, and Tosco permit issues. Mr. Kenton L. Aim, Counsel for the District, asked Dr. Chesler if it would be fair to say that the new limits are much more stringent and the room for error is very slight. While the District will be able to meet the proposed limits, there is much more likelihood there might be a problem. Dr. Chesler agreed, stating that there are some limits that could be problems. If the concentration limits are the same, the District is not at risk but the additional mass limits could be an issue. President Lucey thanked Dr. Chesler for the update. 2) Mr. Batts, General Manager, stated that at the last Board Meeting, the Board requested an update on the number and funding for the District Contractual Assessment District (CAD) Program. Mr. Batts introduced Mr. Curt Swanson, Environmental Services Division Manager, who reported on the status of the CAD Program around the three actions taken by the Board: 1) Intent to form a CAD; 2) Public hearing and formation of the CAD; and 3) Setting the final assessment. Mr. Swanson stated that three CAD projects (Gary Way CAD No. 97-1, Leona Court CAD No. 97-2, and Alhambra CAD No. 98-1) have been completed over the last three years, and final assessments totaling $254,276 have been set. To date payments in totaling $82,350 have been received. There are five CADs (Charles Hill Circle CAD No. 98-2, Haven Lane CAD No. 98-3, Grothman/Alhambra CAD No. 98-4, Forest Lane CAD No. 99-1, and Muir Lane CAD No. 99-2) that have been formed but construction has not been completed and all the bills have not yet been received. Pending assessments for these five CADs total $ 817,505, bringing the subtotal of final and pending assessments to $1,071,781. Mr. Swanson stated that these CADs were funded over more than one fiscal year. There are currently four probable CADs (Barbee Lane CAD No. 98-5, Vine Hill Way CAD No. 99-3, Laurenita Way CAD No. 2000- 1, and Regent Place CAD No. 2000-2) with estimated assessments of $338,200. The Board has authorized and indicated an intention to form 06 01 00 110 3) 4) 5) 6) 7) these CADs. It is probable that these CADs will be funded from the $1,000,000 budgeted for this purpose in the 2000-2001 Capital Improvement Budget. Member Menesini thanked Mr. Swanson for the update. Mr. Batts, General Manager, announced that the District is advertising for Prequalification of Microtunnelers for the Pleasant Hill Relief Interceptor Project, Phase 4. The Pleasant Hill Relief Interceptor, Phase 4, is necessary to eliminate one of the few remaining significant wet weather overflows (Gregory Lane), and is scheduled to bid in the Fall of 2000. The project has been split into two parts. Prequalification of microtunneling contractors will be done first, and then the construction contract will be awarded. The cost of construction is estimated at $6.7 million. President Lucey stated that he spoke with the General Manager about prequalification of microtunnelers in terms of the performance of the contractor and the spills which occurred on the South Orinda Sewer Improvements Project. Because the District was cited for only one of those spills, the contractor would be a qualified bidder on the Pleasant Hill Relief Interceptor Project. President Lucey asked that staff be aware of the Board's concerns in that regard. Mr. Batts, General Manager, announced that the District is advertising for a project to construct elevated safety work platforms. The engineer's estimate for the work is $150,000. Safety suggestions were the impetus for this project. Mr. Batts, General Manager, reported that during the past week the Plant Operations Department has been running incinerator operational tests on the modified air port configuration and new oxygen control strategy incorporated as part of the Cyanide Control Project. These first tests were to assess the actual operation of the furnace and ancillary equipment. The testing for actual cyanide reduction in the furnace scrubber water will begin next month, along with testing required for Title V air emissions regulations. It is expected that next year's Capital Improvement Budget will include proposed projects resulting from these tests. Discussion followed with regard to the operational issues relating to use of landfill gas. Mr. Batts, General Manager, stated that the Board requested updates on the District's negotiations on the landfill gas contract. On May 25, 2000, the District met with NEO, the current owner and operator of the landfill gas process at Acme Landfill, to discuss a new landfill gas sales agreement. The current scope of negotiations includes a variable price scale for the purchase of landfill gas based on the price of natural gas, and a separate letter of intent from the District to purchase electrical power at a discounted price from NED's future generation of electricity from surplus landfill gas. It is anticipated that the landfill gas contract will be presented to the Board in late July or early August. Mr. Batts, General Manager, reported that a District sewer line overflowed in Lafayette into Burton Creek near Burton Drive and Silverado Drive. The estimated volume was 3,000 gallons. The creek has been cleaned and any contaminated water has been pumped to the sewer. The cause of the overflow was root intrusion in a down stream pipe segment, even though this pipe was cleaned three months ago. b. COUNSEL FOR THE DISTRICT None 06 01 00 111 c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) Member Hockett reported on the May 25, 2000 Sanitation and Water Agencies Meeting of Contra Costa County at which the American Water Works AssociationlWater Environment Federation QualServe Self Assessment and Peer Review Program was the topic of discussion. 2) Member Menesini thanked District staff for the excellent work that went into the budget and rate setting process. 3) Member Menesini reported on the upcoming Environmental Alliance discussion series. Ms. Marcia Brockbank, Director of the San Francisco Estuary Project, will discussion national and local estuary projects. Anyone interested is invited to attend. The event will be held at noon on June 19, 2000, at the John Muir National Historic Site in Martinez. 4) President Lucey stated that he will be unable to attend either Board Meeting in August and requested that consideration of the August Board Meeting dates be placed on the next Board agenda for discussion. BREAK At 3:55 p.m., President Lucey declared a recess, reconvening at the hour of 4:11 p.m. with all parties present as previously designated. 7. APPROVAL OF MINUTES a. MINUTES OF MAY 2. 2000 It was moved by Member Menesini and seconded by Member Nejedly, that the minutes of May 2, 2000 be approved with the following correction. In the fourth sentence in the second paragraph on page 9, the word "are" was changed to "will be" so the sentence will read, "Member Boneysteele stated that he is concerned now that the people who will buy these houses and live in that area and will absorb any additional costs for the Bollinger Canyon route over the Estero Drive route will be citizens, taxpayers, and voters in the City of San Ramon; citizens, taxpayers, and voters for Supervisor Gerber; and citizens, taxpayers, and voters for the District Board." There being no objection, the motion was unanimously approved. 8. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JUNE 1. 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. It was moved by Member Menesini and seconded by Member Boneysteele, that the Expenditure List dated June 1, 2000, including Self Insurance Check Nos. 101616- 101622, Running Expense Check Nos. 125263-125509, and Sewer Construction Check Nos. 22201-22243, be approved as recommended. There being no objection, the motion was unanimously approved. 9. BUDGET AND FINANCE a. RECEIVE APRIL 2000 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of April 2000, noting that expenditures were $330,000 less than budget, 06 01 00 112 representing a 12.6 percent favorable variance. Year-to-date expenditures were $1,859,000 less than budget, representing a 6.8 percent favorable variance. Year-to-date revenues of $28,164,000 were right on 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 4.95 percent to 6.6 percent. The latest interest rate as of February 2000 was 6.64 percent. The average yield of the District's LAIF account through March 2000 was 5.85 percent. President Lucey declared that the April 2000 Financial Statements were duly received. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Menesini stated that he feels it is very important that the Board be kept informed of the status of the District's National Pollutant Discharge Elimination System (NPDES) permit renewal. Mr. Batts, General Manager, stated that staff will keep the Board informed. At some point it may be appropriate for a Board Member to go to the Regional Water Quality Control Board to indicate how implementation of the permit requirements will impact the District and its ratepayers. 12. CLOSED SESSION a. LABOR NEGOTIATIONS With respect to labor negotiations, the closed session was held pursuant to Government Code Section 54957.6 to meet with designated representatives prior to and during consultations and discussions with the representatives of employee organizations regarding the salary, salary schedules or compensation paid in the form of fringe benefits to employees in order to review its position and instruct its designated representatives. The District's negotiators are Labor Counsel Allison Woodall, Human Resources Manager Cathryn Freitas, and Plant Operations Division Manager Doug Craig, and the pertinent employee organization is the Central Contra Costa Sanitary District Management Support/Confidential Group. b. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(aL The title of the litigation to be discussed is Joanne Lindroth v. Central Contra Costa Sanitary District, et ai, Contra costa County Superior Court Case No. COO-OOO08. 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: 17 p.m., President Lucey declared the closed session to discuss labor negotiations pursuant to Government Code Section 54957.6 and litigation pursuant to Government Code Sections 54956.9(a) and (c), as noted above. At 4:38 p.m., President Lucey concluded the closed session and reconvened the meeting into 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. 06 01 00 14. ADJOURNMENT 113 There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 5:38 p.m. COUNTERSIGNED: Secre a y the Central on ra sta Sanita District, County of Contra Costa, State of California ~f.~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California 06 01 00