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Home My WebLink About04.a. Approve minutes of December 5, 2013 Board meeting.Y. MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 5, 2013 The Board of Directors of the Central Contra Costa Sanitary District convened in a regular meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, December 5, 2013. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, McGill, Pilecki, Williams, Nejedly ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. b. INTRODUCTION None. The Board welcomed new employees, Jason DeGroot and Brad Leidecker, Associate Engineers in the Capital Projects Division. 2. PUBLIC COMMENTS 3. CONSENT CALENDAR a. Approve minutes of Board meeting held November 7, 2013. b. Approve expenditures dated December 5, 2013. Reviewed by Budget and Finance Committee. C. Receive October 2013 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. d. Approve the Comprehensive Annual Financial Report (CAFR) as of June 30, 2013 for submission to the Government Finance Officers Association. Approval recommended by Budget and Finance Committee. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 5, 2013 Adopt Resolution 2013 -040 accepting a grant of easement from Deborah L. Kerlin, Trustee of the Deborah L. Kerlin Revocable Trust, for the property located at 735 Glenside Drive in Lafayette (APN 236- 022 -010) (District Project 5990 — Parcel 3); and authorizing staff to record the document with the Contra Costa County Recorder. It was moved by Member Causey and seconded by Member Williams to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. REPORTS a. GENERAL MANAGER 1) Report on resolution of Fiscal Year 2013 -14 commercial sewer service charges resulting from errors in water usage data provided by East Bay Municipal Utility District ( EBMUD). Environmental Services Division Manager Danea Gemmell reported that incorrect water usage data from East Bay Municipal Utility District ( EBMUD) resulted in $1,237,451 ($2,562,812 instead of $1,325,361) in overbilling to approximately 68 commercial accounts. The discrepancies ranged from $140 to one customer to $146,000 to John Muir Hospital. Ms. Gemmell recounted that, in April 2013, EBMUD submitted the data for 5,300 accounts in an unusual format. The EBMUD staff member who compiled the data was new to the role. In the District's manipulation of that data, performed with the help of the Information Technology department, some of the accounts were double billed, some for the entire year and some for a period of three or four months. After receiving phone calls in October, staff contacted EBMUD and identified the problem. Staff has since adjusted 23 accounts and has yet to adjust 45 more accounts. The District will send a letter of notification to the remaining property owners. The tax collector will issue revised bills for the second installments due in April or issue refunds as necessary. Bills will be adjusted at a cost of $13 per account. To prevent future occurrences, staff has requested that the data be submitted earlier and the reporting format be changed. Staff will also run a trend analysis and has worked with SunGard to implement a Water Consumption Variance Report to identify 100 percent higher consumption and 50 percent lower consumption. President Nejedly requested that the Board review the letter before it is sent to the property owners. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 5, 2013 2) Report on the District's current Cash Flow and Trends (Update on matter reviewed with Budget and Finance Committee on September 30 2013.) Finance Manager Thea Vassallo presented a report on cash flow and trends, which was reviewed by the Budget and Finance Committee at its September 30, 2013 and December 2, 2013 meetings. She showed a graph estimating the monthly Cash and Investment Balance and the Cash Flow from July 2010 to December 20, 2013, before the Sewer Service Charge first December Installment. She reported that the average spending from 2008 to 2012 was $37.2 million per year. During these years, the first five and a half months' draw on Funds Available increased due to monthly Governmental Accounting Standards Board (GASB) 45 Trust payments; increased capital spending on the A -Line project, primarily in 2008; increased Contra Costa County Employees' Retirement Association (CCCERA) prefunding amounts; and revenue reductions, due to the economy and state property tax borrowing. If not for the Funds Required minimum target, short-term borrowing would have been necessary. Ms. Vassallo estimated that, in 2013, revenue was up, and expenses were down by $5 million total, allowing a smaller draw to cash and investments compared to the budget used to calculate the Funds Required. She presented a monthly summary of cash and investments from the June 2013 year end audit to the present, noting that, in September, a Capital Bill final payment was issued by the City of Concord, and the Permit Counter received revenue from one large development project. The Total Draw to Cash and Investments so far this fiscal year was $35,396,000, and the Total Funds Required from the January 2013 Ten -Year Plan was $38.4 million, for a variance of $3,004,000. 3) Announcements The following written announcements were included with the agenda packet: a) Recent Personnel Status Changes — Dana Lawson, Senior Engineer in the Environmental Services Division, transferred to the Capital Projects Division effective November 19, 2013. Margarita Morton, responsible for the District's payroll processes, underwent a reclassification of her position and title change to Payroll Analyst, effective November 21, 2013. No additional written announcements were made at the meeting. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm stated that the closed session listed on the agenda was not needed. 3 C. ,7 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of December 5, 2013 SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming meetings of the Enterprise Committee on December 9 and the Capital Projects Committee on December 10, 2013. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses; future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses 2) 3) Member Causey Member Causey reported on the November 22, 2013 East Bay Leadership Council Luncheon for Congressman Eric Swalwell, regarding Washington update. Member McGill Member McGill and President Nejedly reported on the December 2, 2013 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. Appoint President and President Pro Tern for one -year terms commencing January 1, 2014. It was moved by President Nejedly and seconded by Member McGill to appoint Member Williams, the current President Pro Tem, as President for a one -year term commencing January 1, 2014. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Nejedly NOES: Members: None ABSTAIN: Members: Williams It was moved by Member Williams and seconded by Member Pilecki to appoint Member McGill as President Pro Tern for a one -year term commencing January 1, 2014. Motion passed by unanimous vote of the Board. Announcements Member McGill provided a written report covering Announcements and other meetings. 12 None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 5, 2013 6. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 7. SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly suggested that the order of the articles from the "In The News" packets that are received by the Board at every Board meeting be arranged in chronological order, so the most recent articles appear last. The Board concurred with the suggestion. 8. ANNOUNCEMENT OF CLOSED SESSION (Pursuant to Government Code Section 54957.7) Closed session was not held. 9. CLOSED SESSION The Board did not enter into closed session in the Caucus Room regarding the following matter: a. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B): ONE POTENTIAL CASE — CALIFORNIA RIVER WATCH 10. REPORT OUT OF CLOSED SESSION Closed session was not held. 11. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 2:44 p.m. James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California 5 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 5, 2013 COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California 2