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HomeMy WebLinkAboutBOARD MINUTES 09-07-00 160 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 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 September 7, 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 a. INTRODUCE NEW EMPLOYEES . MELODY LABELLA. ENGINEERING ASSIST ANT II . CARL VON STETTEN. ENGINEERING TECHNICIAN II . PATRICIA WEDEMEYER. ADMINISTRATIVE SUPPORT TECHNICIAN I Ms. Melody LaBella, Engineering Assistant II, Mr. Carl Von Stetten, Engineering Technician II, and Ms. Patty Wedemeyer, Administrative Support Technician I, were introduced and welcomed to the District by President Lucey and the Board of Directors. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by President Lucey and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. and b., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 2000-128, establishing the Sewer Construction Fund appropriations limit in the amount of $42,890,560 for the 2000-2001 fiscal year, in accordance with Article XIII B of the California Constitution, was adopted; and the change in the local assessment roll due to local nonresidential construction was selected for use in computing the . appropriations limit. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Menesini, Nejedly, Hockett, Boneysteele None None b. Resolution No. 2000- 129 was adopted, confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the office of the Contra Costa County Recorder for the Charles Hill Circle Contractual Assessment District No. 98-2, DP 5307. Motion unanimously approved on the following vote: 09 07 00 None a. 161 AYES: Members: Lucey, Menesini, Nejedly, Hockett, Boneysteele NOES: Members: None ABSENT: Members: None 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 5. REPORTS GENERAL MANAGER 1 ) Mr. Charles W. Batts, General Manager, stated that at the last Board Meeting, an update on the Treatment Plant Seismic Upgrade Project was requested. After the recent events in Napa, it seems more than timely to review this portion of the District's earthquake preparedness. Improvements have been undertaken to the treatment plant to maintain treatment capability after an earthquake and to minimize restoration time and costs for damaged facilities. Mr. Batts introduced Mr. Munawar Husain, Associate Engineer, who stated that construction on the Treatment Plant Seismic Upgrade Project began about two years ago. Work has been going on throughout the treatment plant to upgrade existing facilities and equipment to withstand damage from an earthquake up to 6.5 on the Richter scale. Mr. Husain stated that it is also hoped that the improvements from this project will allow treatment operations to begin right away, avoiding a prolonged shutdown. The construction contract in the amount of $5,514,484 was awarded to Kaweah Construction Company on November 20, 1998 and the Notice to Proceed was issued on January 6, 1999. The contract completion date is February 3, 2001. To date 79 percent of the time has elapsed and the work is 90 percent complete. There have been 22 change orders totaling $80,183, a little less than 1.5 percent of the contract value. Mr. Husain reviewed the major components of the contract work including: . . Replace feedwell rings in eight Secondary Clarifiers Reinforce and upgrade divider walls in four Aeration and Nitrification Tanks Build a new electrical switchgear building Install new electric cables in above ground conduits and in surface electrical cable trenches Upgrade the electrical distribution system to permit switching to alternate power sources (standby power or cogeneration power) in the event the PG&E system is damaged Add additional supports and bracing throughout the Plant to such things as boilers, centrifuges, piping, overhead crane rails, overhead electric duct banks, motor control centers, fuel and chemical tanks, computer floors . . . . . Mr. Husain stated that the District and Montgomery Watson staff have developed a unique design for the center feedwell ring for the clarifiers. An application was filed in August 2000 with the U.S. Patent and Trademark Office in Washington, D.C. for this unique solution for the clarifiers. Rights for these clarifier feedwell pressure relief doors have been assigned to the District for this patent by all the individuals who were part of the development. A San Francisco law firm is representing the District on the patent application. The District will be notified with regard to approval of the patent in the next three to four months. o~ 07 00 162 09 Discussion followed with regard to the patent process, the cost of securing the patent, and whether it is generally good ethical practice for a public agency to secure a patent. Mr. Kenton lo Aim, Counsel for the District, stated that once the patent is secured it will be up to the Board of Directors to consider whether to put this in the public domain. The thought was to protect the process from others stepping in and getting a patent and then charging for its use or preventing others from using it. Mr. Husain continued his presentation, showing slides of the seismic upgrades being made throughout the treatment plant and specifically the upgrades to the clarifiers. President Lucey thanked Mr. Husain for his information presentation. 2) Mr. Batts, General Manager, announced that the District will be advertising for bids for the 2,400 Volt Feeder Replacement Project. The feeder provides power to two large Applied Water Pumps that pump effluent into the Filter Plant. These two pumps also provide backup and reliability to small regular duty pumps for utility water and the reclaimed water system. The feeder will be replaced with one with improved insulation. The engineer's estimate for the work is $50,000. 3) Mr. Batts, General Manager, announced that the District will also be advertising for the Filter Plant Enhancements Project, DP 7196, to rehabilitate the sand filters and the backwash system, add algae control, and replace valving. The engineer's estimate for this project is $700,000. 4) Mr. Batts, .General Manager, stated that at the last Board Meeting there was a suggestion for the use of an end-of-project notice to inform residents of the completion of a construction project and to thank them for their patience. The District's construction staff has taken the idea and will use end-of-project notification to effected residents including a telephone number for project comments. Signs will also be used for those whose normal traffic patterns were affected by construction. 5) Mr. Batts, General Manager, stated that there has been little action on the Little Hoover Commission Report during this legislative session. The property tax allocation remains and pay back of Educational Revenue Augmentation Fund (ERAF) funds to special districts will not occur. The request for audits of special districts by the State, Assembly Member Wildman's bill, has been withdrawn until next year. 6) Mr. Batts, General Manager, reported that the City of Orinda has asked the District to provide survey assistance for some of its stormwater sewers. The work will be less than $5,000 and will be performed under a contract . similar to other agreements the District uses for public agencies. Unless the Board objects, staff will proceed. The Board voiced no objection. 7) Mr. Batts, General Manager, announced that the District's 2000 Health and Safety Picnic will be held on September 16, from 10:00 a.m. to 3:00 p.m. at the Pleasant Hill Park on Gregory Lane. There will be games, displays, safety activities, and great food. Everyone is welcome. 8) Mr. Batts, General Manager, announced that the District will participate in the September 27, 2000 Walnut Creek Chamber of Commerce Business Fair and the September 28, 2000 Danville Chamber of Commerce Business Showcase. 9) Mr. Batts, General Manager, announced that Mt. View Sanitary District is . hosting an open house on September 23, 2000, from 9:0,0 a.m. to noon. Activities will include pollution prevention displays by public and private agencies, viewing of pollution prevention equipment, and tours of Mt. 07 00 10) 163 View's facilities and wetlands. A billboard promoting the Mt. View/CCCSD Mercury Exchange Program can be seen on the way to the open house. Mr. Batts, General Manager, stated that the Board received copies of the District testimony at the State Water Resources Control Board appeal hearing on the Tosco National Pollutant Discharge Elimination System (NPDES) permit. Director of Plant Operations Jim Kelly will represent the District at the hearing on the single issue that the new Tocso permit continue to allow the use of recycled water by the refinery by incorporating a pass through credit for regulated pollutants. Mr. Kenton lo AIm, Counsel for the District, stated that he was at the hearing earlier in the day. Tosco has been sold to Ultramar and they have asked for the ability to submit supplemental information. They have indicated informally that they support use of the District's recycled water. b. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton lo Aim, Counsel for the District, stated that previously the Board expressed concern that the District has little control over contractors relative to the bidding process on the issue of environmental violations. At the direction of the Board, staff developed some criteria relating to Notices of Violation for inclusion in the Request for Proposals (RFP) for microtunneling and tunneling contractors. Mr. Aim distributed language excerpted from the RFP relating to Notices of Violation. Responses to the RFP are due on September 12 primarily for the Pleasant Hill Relief Interceptor Project, Phase 4, but also for the Dougherty Tunnel and Trunk Sewer Project. Mr. Aim stated that so far ten sets of prequalifications have been received. Staff recommends that at least one contractor be disqualified. Additionally, the District has typically received significantly more applications for such work, so perhaps some contractor who knew they would not qualify choose not to submit. Mr. Aim stated that this is a work in progress but it is operating as a screening process to eliminate the worst offenders in safety and environmental issues. The reason this was not drafted more stringently w~s to comply with existing state law and to set criteria that are defendable. It is before the Board now to provide the Board with an opportunity to give additional direction. An addendum can be sent out if necessary incorporating any direction from the Board. Member Nejedly stated that this screening tool is not to put contractors through more hoops but rather to gather information on where the contractors stand with regard to Notices of Violation. In our case, the District, not the contractor, received the Notice of Violation for a contractor's actions on a District project. President Lucey stated that this concept is excellent and is exactly what the Board requested. President Lucey commended staff for their efforts. . c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) 2) Member Menesini requested input from the Board with regard to the California Special Districts Association (CSDA) Board of Directors election. Member Menesini stated that Mr. Charles Beesley, of Contra Costa Mosquito and Vector Control District, is known to the District and unless the Board objects he would vote for Mr. Beesley. The Board agreed. Member Menesini announced that the Martinez/Alhambra Watershed' Management Plan is nearing completion. Among other things, the report 09 07 00 164 deals with non-point source pollution in the watershed. Member Menesini stated that he hopes this will help the District keep pollutants out of the sanitary sewers and hopefully it will be a document that will be emulated in other watersheds. Member Menesini indicated that he represents the District at the Martinez/Alhambra Watershed meetings. At those meetings he has been surprised by the lack of knowledge of sanitary districts. The District's monuments are buried deep in the ground and the 1,500 miles of pipelines are not visible. The Martinez/Alhambra Watershed Management Plan is visible. There were several places where it was necessary to call the group's attention to the District's significant role in taking water away from the watershed. Member Menesini stated that he hopes this document will serve as a model for other watersheds. 6. TREATMENT PLANT a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LANDFILL GAS AGREEMENT WITH MM MARTINEZ ENERGY LLC Mr. Batts, General Manager, introduced Mr. Jim Belcher, Senior Engineer, who stated that a proposed agreement has been reached with MM Martinez Energy LLC to supply landfill gas. Mr. Belcher reviewed the contract elements as follows: 1 ) The contract term is five years commencing August 1, 2000 with option for extension on a 90-day basis. 2) Landfill gas will be discounted against the District's cost to burn natural gas, at the burner tip price. . Landfill gas will be discounted at 30 percent below natural gas. . Landfill gas price has a floor price of $2.50 per decatherm. . For natural gas prices over $5.00 per decatherm, the incremental amount over will be discounted at 50 percent. Mr. Belcher reviewed scenarios of potential savings based on estimated landfill gas usage and the estimated cost of natural gas. Mr. Belcher stated that staff has been worked closely with District Counsel on this contract and now recommends approval of the contract. Discussion followed with regard to the potential savings to the ratepayers.. The Board commended staff for their efforts in negotiating this agreement. 7. HUMAN RESOURCES a. DELETE VACANT MAINTENANCE SUPERVISOR POSITION (S-71. $4.822-$5.834): ADD FIELD OPERATIONS SUPERINTENDENT POSITION (5-77. $5.562-$6.740) WITHIN THE COLLECTION SYSTEM OPERATIONS DEPARTMENT: TRANSFER ASSOCIATE ENGINEER POSITION (S-77. $5.562-$6.740) FROM THE COLLECTION SYSTEM OPERATIONS DEPARTMENT TO THE ENGINEERING DEPARTMENT Mr. Batts, General Manager, stated that this position paper reflects several changes in the focus of the Collection System Operations (CSO) Department. First, there is the continued focus on preventing overflows and providing excellent customer service through the cleaning crews. Second, there is an increased need for television services associated with the boom in construction activity. Finally, there have been renewed efforts to reduce the backlog of small construction and repair projects including the addition of a third construction crew authorized by the Board last year. The Engineering Department is supporting these activities through the Capital Improvement Budget by increasing the number of small sewer and pipeline repair projects and raising the priority on storm damage and landslide projects. These small projects require the same engineering elements as major projects: design, drawings and specifications, bid documents, and 09 07 00 165 construction management and inspection. For this reason and for the continued cooperation between CSO and Engineering on this work, Mr. Tom Godsey, Associate Engineer now at CSO, will move to the Collection System Design Group in the Engineering Department Capital Projects Division. This move- and the unexpected retirement of the present Field Operations Superintendent, Mr. Bob Mowers, have necessitated the replacement of and strengthening of leadership for the CSO organization. The Board is asked to authorize the transfer of the Associate Engineer position to the Engineering Department and to upgrade a vacant Maintenance Supervisor position to that of Field Operations Superintendent at CSO. Following discussion, it was moved by President Lucey and seconded by Member Hockett, that one vacant Maintenance Supervisor position be deleted, that one Field Operations Superintendent position be added, and that the Associate Engineer position be transferred from CSO to the Engineering Department. There being no objection, the motion was unanimously approved. Mr. Batts introduced Mr. Bill Echols who was just promoted to the position of Field Operations Superintendent. At this time, President Lucey returned to Item 6., Treatment Plant. 6. TREATMENT PLANT a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LANDFILL GAS AGREEMENT WITH MM MARTINEZ ENERGY LLC It was moved by Member Menesini and seconded by Member Nejedly, that the General Manager be authorized to enter into the Landfill Gas Sales Agreement with MM Martinez Energy LLC to supply landfill gas for five years beginning August 1, 2000. There being no objection, the motion was unanimously approved. At this time, President Lucey reverted to the order of the agenda. 8. APPROVAL OF MINUTES a. MINUTES OF JULY 20. 2000 b. MINUTES OF AUGUST 1 7. 2000 I It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of July 20, 2000 and the minutes of August 17, 2000, be approved as presented. There being no objection, the motion was unanimously approved. 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED SEPTEMBER 7. 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. Questions were ably answered by Director of Administration Paul Morsen and Controller Debbie Ratcliff. It was moved by Member Menesini and seconded by Member Boneysteele, that the Expenditure List dated September 7, 2000, including Self Insurance Check Nos. 101641- 101645, Running Expense Check Nos. 127112- 127384, and Sewer Construction Check Nos. 22523-22587, be approved as recommended. There being no objection, the motion was unanimously approved. Member Menesini requested that an update on the A-Line predesign be presented at a future Board Meeting. 09 07 00 166 10. BUDGET AND FINANCE a. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Mr. Batts, General Manager, stated that annually the Board must review the District Investment Policy. District staff and Counsel for the District reviewed legislative changes and the District Investment Policy and determined that no changes are necessary at this time. . , It was moved by Member Nejedly and seconded by Member Menesini, that the District Investment Policy be approved with no changes. There being no objection, the motion was unanimously approved. b. RECEIVE FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30. 2000 Ms. Deborah Ratcliff, Controller, provided an overview of the financial results of District operations for the fiscal year ended June 30, 2000. Ms. Ratcliff stated that these results are preliminary. Final audited results will be available in October. This year the books were held open longer in an effort to get all the invoices in and adjustments made. Even doing that, as noted in the memo to the Board, future adjustments must be made due to invoices received after closing, recording annual depreciation, and adjustments required to reconcile accounts at year end. Ms. Ratcliff stated that the overheads and information that will be presented reflect the adjusted numbers. ", '. Ms. Ratcliff provided a brief report on operations and maintenance revenues, expenses, and reserves for the fiscal year ended June 30, 2000. Actual revenues of $31,780,000 were $162,000 greater than budget, representing a 0.5 percent favorable variance. Actual expenditures of $33,579,000 were $274,000 less than budget, representing a 0.8 percent favorable variance. As a result, reserves will be increased by $436,000 resulting in a fund balanèe at June 30, 2000 of $3.9 million. Ms. Ratcliff reported that the Self Insurance Fund actual revenues of $ 517 ,000 were $87,000 greater than budget, representing a 20.2 percent favorable budget. Actual expenditures of $343,000 were $414,000 less than budget, representing a 54.7 percent favorable variance. Expenditures are well under budget primarily in the area of legal costs and technical services. The Self Insurance Fund balance at June 30, 2000 will be increased by $501,000 to $5,245,000. As a result of the actuarial study required by Government Accounting Standards Board Statement 10 (GASB 10), an increase of $300,000 is required to the reserve for claims. This transfer will b.e made and the Self Insurance Fund balance will be reduced to approximately $4.9 million. 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 4.9 percent to 6.7 percent. The latest interest rate as of May 2000 was 6.7 percent. The average yield of the LAIF account through May 2000 was 6.2 percent. President Lucey declared that the June 30, 2000 Financial Statements were duly received. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None BREAK At 3:33 p.m., President Lucey declared a recess, reconvening at the hour of 3:48 p.m. with all parties present as previously designated. 09 07 00 167 13. CLOSED SESSION a. EXISTING LITIGATION. The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(aL The titles of the litigation to be discussed are as follows: 1 ) Joanne Lindroth v. Central Contra Costa Sanitary District, et al - Contra Costa County Superior Court Case No. COO-00008; and 2) Central Contra Costa Sanitary District v. City of San Ramon - Contra Costa County Superior Court Case No. COO-02560. b. 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 the 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 and Secretary of the District Joyce Murphy, and the pertinent employee organization is the Central Contra Costa Sanitary District Management Group and Paul Morsen, as an individual. At 3:48 p.m., President Lucey declared the closed session to discuss existing litigation pursuant to Government Code Section 54956.9(a) and labor negotiations pursuant to Government Code Section 54957.6 as noted above. At 4:28 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. 15. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 4:29 p.m. President of the Board of Direc rs, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 09 07 00