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HomeMy WebLinkAboutBOARD MINUTES 05-20-99 87 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 20, 1999 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 May 20, 1999. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Menesini, Boneysteele, Lucey ABSENT: Members: Hockett Member Hockett entered the meeting at the hour of 2:08 p.m. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. RECEIVE CALIFORNIA ASSOCIATION OF PUBLIC INFORMATION OFFICERS (CAPIO) AWARDS: . FIRST PLACE EXCELLENCE IN COMMUNICATION AWARD FOR NEWSLETTERS (LATERAL CONNECTION) Mr. Charles W. Batts, General Manager, introduced Mr. Tim Tullis, Public Information and Production Assistant II, who stated that the First Place Excellence in Communication Award for Newsletters was presented by the California Association of Public Information Officers (CAPIO) to the District for its Lateral Connection employees' newsletter. Mr. Tullis stated that as with all awards the District receives, it is not just the efforts of one person who is responsible for the receiving the award. It is a group effort. Mr. Tullis stated that he wished to share this award with the Board of Directors. President Lucey commended Mr. Tullis and the Communication Services Division on this significant achievement. It was moved by Member Menesini and seconded by Member Nejedly, that a letter of commendation be drafted for signature by the President of the Board of Directors. The motion passed without objection. . SECOND PLACE EXCELLENCE IN COMMUNICATION AWARD FOR SPECIAL EVENT OR CAMPAIGN (INTEGRATED PEST MANAGEMENT tlPM) PROGRAM) Mr. Batts, General Manager, introduced Ms. Harriette Heibel, Community Affairs Manager, who stated that staff is very proud to receive the CAPIO Second Place Excellence in Communication Award for a Special Event or Campaign for the Integrated Pest Management (lPM) Program. The IPM Program is an outstanding campaign and cooperative effort involving 120 stores throughout the Bay Area. Ms. Heibel stated that Mr. Bart Brandenburg, Pollution Prevention Program Superintendent and one of the key staff members responsible for this program, was unable to be present today because of jury duty. 05 20 99 88 It was moved by Member Menesini that a letter of commendation be drafted for signature by the President of the Board of Directors, commending staff for this significant achievement. The motion passed without objection. Member Hockett entered the meeting at the hour of 2:08 p.m. 4. CONSENT CALENDAR Following the suggestion of Member Menesini that a letter be sent to the Pleasant Hill Recreation and Park District relative to Consent Calendar Item b., it was moved by Member Nejedly and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. Quitclaim Deed to BPP/Pleasant Hill, loP., a California Limited Partnership, Jobs 214,487, and 780 was approved; the President of the District Board of Directors and the Secretary of the District were authorized to execute and record said Quitclaim Deed; and Resolution No. 99-061 was adopted to that effect. a. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: b. Nejedly, Menesini, Hockett, Boneysteele, Lucey None None The Irrevocable Offer of Dedication from Mrs. Maryellen Smith was accepted, DP 4985; the President of the Board of Directors and the Secretary of the District were authorized to execute an addendum to the Purchase Agreement with the Pleasant Hill Recreation and Park District; the Smith parcel was declared as surplus; quitclaim of the Smith parcel to the Pleasant Hill Recreation and Park District was approved; staff was authorized to record the Resolution of Acceptance of the Irrevocable Offer of Dedication and the Quitclaim Deed to the Park District with the County Recorder; and Resolution Nos. 99-062 and 99-063 were adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Menesini, Hockett, Boneysteele, Lucey None None c. Authorization was given for P.A. 99-11 (Danville) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. 05 Nejedly, Menesini, Hockett, Boneysteele, Lucey None None June 3, 1999 was established as the date for a public hearing to receive comments on the Draft Fiscal Years 1999-2000/2000-2001 Capital Improvement budget/1999 Capital Improvement Plant. 20 99 89 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Menesini, Hockett, Boneysteele, Lucey None None 5. HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING AN ORDINANCE TO REVISE DISTRICT CODE CHAPTER 6.30 SCHEDULE OF RATES AND CHARGES FOR VARIOUS ENVIRONMENTAL AND DEVELOPMENT-RELATED SERVICES Mr. Batts, General Manager, introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who provided an overview of the amount, nature, and reason for the proposed increases in rates and charges for environmental and development-related services. Mr. Miyamoto- Mills stated that notification was sent to a number of contractor and home building groups in addition to those who have requested to receive such notices. Notices of the public hearing and proposed rate increases were published in the newspaper as well. Mr. Miyamoto-Mills noted that it is not unusual for the District to receive calls from interested parties on these types of hearings, but this time we did not. Mr. Miyamoto-Mills stated that these fees as a proportion of development costs are quite nominal. Mr. Miyamoto-Mills stated that with the exception of one fee, the approach was to adjust the rates and charges based on the annual wage adjustment, increased benefits costs, and application of the updated administrative overhead based on an internal audit received late in 1998. It is proposed that the increased administrative overhead be phased in over a two-year period. The proportion of rates and charges increase based on these three components is 9.62 percent. The recommended percent change in each fee varies from 8.33 percent to 10.71 percent due to rounding. Discussion followed with regard to the average increase per year over time, the increase in benefit costs, factors considered in establishing administrative overhead, the net impact of the proposed change, the historical position of the Board to make these fees pay for themselves, and the suggestion that this matter be held over two weeks to allow presentation of different scenarios for phasing in the increase. Member Boneysteele stated that he is not in favor of putting the matter over. While the Board may not like the rate increase, it is something that must be considered and there is no reason why it should not be acted on today. The charges and overhead seem reasonable. An auditor was hired to review this matter and has made a finding. There is no merit in waiting. Following further discussion, it was moved by Member Menesini and seconded by Member Nejedly, that consideration of the proposed revision to District Code Chapter 6.30 Schedule of Rates and Charges for various environmental and development-related services be held over for two weeks for development of additional alternatives for phasing in the proposed rate increase. Motion approved on the following roll call vote: AYES: Members: Menesini, Nejedly, Lucey NOES: Members: Hockett, Boneysteele ABSENT: Members: None 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 16.a., Closed Session, was taken out of order at 4:00 p.m. to accommodate the attorney advising the District on the Paulson matter. 05 20 99 90 a. 7. BIDS AND AWARDS APPROVE RELIEF OF BID REQUEST FROM DIVISION TWO CONSTRUCTION. INC. AND AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO TGH PIPELINES. INC. FOR ROSSMOOR SEWER IMPROVEMENTS PROJECT. PHASE 5. DP 5352. OR TAKE OTHER ACTION AS APPROPRIATE Following explanation by Mr. Batts, General Manager, it was moved by Member Hockett and seconded by Member Menesini, that the request for relief of bid from Division Two Construction, Inc. be approved; that staff be directed to return their bid bond; and that award of construction for construction of the Rossmoor Sewer Improvements Project, Phase 5, DP 5352, be authorized in the amount of $289,340 to TGH Pipelines, Inc., the lowest responsible bidder. There being no objection, the motion was unanimously approved. a. 05 8. REPORTS GENERAL MANAGER 1 ) Mr. Batts, General Manager, stated that as the Board is aware, the District has entered into a dialogue with several agencies about the concept of partnering to reduce costs and improve efficiency and effectiveness. The District is now involved in several such efforts, including a recruiting agreement with Delta Diablo Sanitation District. Mr. John Larson, Director of Collection System Operations, has been discussing the possibility of sharing labor for collection system maintenance with Delta Diablo Sanitation District (DDSD). Mr. Batts introduced Mr. Larson who described the work that could be accomplished during the construction season by contracting with DDSD for seasonal use of collection system maintenance personnel. Mr. Larson reviewed the draft principles of agreement with DDSD. Two DDSD employees would perform work for Central Contra Costa Sanitary District (CCCSD) during the June through November 1 999 construction season. CCCSD would reimburse the employees' salaries plus 70 percent overhead. The total cost for the agreement would not exceed $100,000. The agreement could be canceled with 30 days notice by either party. Each party is liable for their own actions, CCCSD for the direction of the employees and DDSD for the actions of the employees. Discussion followed with regard to the amount and priority of outstanding work, seasonable use of temporary employees, CCCSD staffing levels, and Local One's position with regard to the proposed agreement. Mr. Larson indicated that during this process, he would be looking at staffing and productivity and he would be addressing that in the next Personnel Budget if appropriate. 2) Mr. Batts, General Manager, introduced Ms. Harriette Heibel, Community Affairs Manager, who provided an overview of the District's Sewer Science High School Program. Ms. Heibel stated that the program is a partnership with the City of Palo Alto. Ms. Heibel described the five-day wastewater laboratory program which integrates biology, chemistry, physics, and mathematics. The program introduces wastewater, storm water, and water quality concepts and provides a foundation on which to discuss pollution prevention. A pilot program involving four schools and a total of 16 classes with six teachers and 350 students has been completed. The teachers and students have completed evaluation surveys and a teacher evaluation meeting was conducted. All evaluations received were positive. Teachers and students were enthusiastic about the program, curriculum needs were met, and the clarity and professionalism of the student workbook developed by the District was appreciated. Students expressed understanding of wastewater treatment and the need for pollution prevention. Recommendations for next year include building our own wastewater lab kit, offering a teacher training workshop, enhancing the student workbook, 20 99 b. c. d. 3) 91 reorganizing the teacher resource manual, and offering the program to additional teachers. In closing Ms. Heibel indicated that staff is pursuing a $10,000 grant to pay for printing of the workbooks. Member Menesini stated that he observed the teacher workshop and found the program to be a creditable, scientific program that fits into the school curriculum. 3) Mr. Batts, General Manager, announced that the District will soon be offering employees an additional dental program from the Delta Dental carrier. The additional plan could help keep District benefit costs lower and employee co-payment costs would be reduced with this preferred provider option. 4) Mr. Batts, General Manager, stated that at the last Board Meeting the Board was advised that the District's contractor on the Martinez Eastside Sewer Improvement Project, McGuire and Hester, was dumping spoils at the Family Gun Club in Solano County without the District's knowledge and in violation of Bay Conservation and Development Commission (BCDC) permit requirements. The amount of material disposed of at this site is between 2,500 and 3,500 cubic yards of the total 15,000 cubic yards of spoils. The disposal site was arranged by Baker Trucking which was being used on the project. McGuire and Hester assumed the owner had the proper permits. There was no financial arrangement between the parties or with the District. In their letter, McGuire and Hester stated that the District did not know about the dumping and was not responsible under the contract for spoils disposal. The contractor has tested the material and there appears to be no contamination problems. BCDC will continue its investigation and reach an enforcement decision by the end of the month. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, distributed the agenda for the Personnel Committee meeting scheduled for May 25, 1999 at 2:00 p.m. 2) Ms. Murphy, Secretary of the District, stated that the Sanitation and Water Agencies of Contra Costa County will meet at 6:00 p.m. on May 27, 1999 at the Contra Costa Water District Los Vaqueros Watershed Office. Directions were distributed. BOARD MEMBERS 1 ) Member Menesini announced that the Environmental Alliance will be conducting a workshop for high school seniors on negotiation of environmental issues. A similar workshop was conducted last year and was very successful. 2) President Lucey announced that the Alameda and Contra Costa County Chapters of the California Special Districts Association will jointly host a legislative reception on June 3, 1999 at 4:30 p.m. at the San Ramon Valley Fire Protection District Headquarters. The District has a Board Meeting on that day but may be able to complete its business in time to attend. President Lucey reported on the status of AB 1549 (Torlakson) which mandates ward elections of District Board Members. 05 20 99 92 BREAK At 3:42 p.m., President Lucey declared a recess, reconvening at the hour of 3:48 p.m. with all parties present as previously designated. Noting the presence of the attorney advising the District in the Paulson matter, President Lucey proceeded to closed session at this time. 16. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation discussed was Vernon D. Paulson, et al v. Board of Retirement of the Contra Costa County Employees Retirement Association, et al - Contra Costa County Superior Court Case No. C96-02939. At 3:48 p.m., President Lucey declared the closed session to discuss existing litigation as noted above. At 4:28 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. 17. REPORT OF DISCUSSIONS IN CLOSED SESSION President Lucey reported that the proposed settlement in the matter of Vernon D. Paulson, et al v. Board of Retirement of the Contra Costa County Employees Retirement Association, et al - Contra Costa County Superior Court Case No. C96-02939, was approved. At this time, President Lucey reverted to the order of the agenda. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO THE AGREEMENT WITH G.S. DODSON AND ASSOCIATES FOR THE DESIGN OF IMPROVEMENTS FOR ORINDA CROSSROADS AND MORAGA PUMPING STATIONS. DP 5237 Mr. Batts, General Manager, stated that the proposed amendment to the design contract with G.S. Dodson and Associates is to add an upgraded pumping station monitoring and alarm telemetry system in the design of the Orinda Crossroads and Moraga Pumping Stations, and to develop a design master plan for such computer installations to ensure compatibility with future pumping station installations. Following discussion of the monitoring and alarm telemetry system and the consultant selection process, it was moved by Member Menesini and seconded by Member Hockett, that the General Manager be authorized to execute a $147,000 cost reimbursement amendment with G.S. Dodson and Associates for additional design services related to the Orinda Crossroads and Moraga Pumping Stations Improvement Project, DP 5237. There being no objection, the motion was unanimously approved. 10. TREATMENT PLANT a. AUTHORIZE THE GENERAL MANAGER TO ALLOCATE $70.000 FROM THE TREATMENT PLANT PROGRAM CONTINGENCY ACCOUNT FOR THE STANDBY POWER FACILITY IMPROVEMENT PROJECT. DP 6138 Following explanation by Mr. Batts, General Manager, and discussion of proposed scope of work and operation of the existing engines, it was moved by Member Nejedly and seconded by Member Menesini, that the General Manager be authorized to allocate $70,000 from the Treatment Plant Program Contingency Account for the Standby Power Facility Improvement Project, DP 6138. The motion was approved with Member Nejedly voting no. 05 20 99 93 11. APPROVAL OF MINUTES a. MINUTES OF APRIL 1 5. 1999 It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of April 15, 1999 be approved as presented. There being no objection, the motion was unanimously approved. 1 2. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 20. 1999 Member Boneysteele, Chair of the Budget and Finance Committee, stated that he and President Lucey reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele and seconded by President Lucey, that the Expenditure List dated May 20, 1999, including Self Insurance Fund Check Nos. 101539- 101541, Running Expense Fund Check Nos. 117838-118117, Sewer Construction Fund Check Nos. 21108-21152, Payroll Fund Manual Check Nos. 48532-48539, and Payroll Fund Regular Check Nos. 50048-50114, be approved as recommended. There being no objection, the motion was unanimously approved. 13. BUDGET AND FINANCE a. RECEIVE THE 1999-2000 OPERATIONS AND MAINTENANCE BUDGET' Mr. Batts, General Manager, introduced Ms. Deborah Ratcliff, Controller, who summarized the 1997-1998 actual, the 1998-1999 projected, and the 1999-2000 budgeted revenues, expenses, and reserves. In February 1999, the Board made the decision to maintain the Sewer Service Charge at $188. The Operations and Maintenance (O&M) Budget before the Board is calculated using a Sewer Service Charge O&M component of $157, with the remaining $31 allocated to the Sewer Construction Fund. Revenues for 1998-1999 were budgeted at $31,168,200 compared to 1999-2000 budgeted revenues of $31,618,20 which represents a 1.4 percent increase. Expenses for 1998-1999 were budgeted at 32,827,029 compared to 1999-2000 budgeted expenses of $33,853,178 which represents a 3.1 percent increase. At June 30, 2000, reserves are anticipated to be $4,038,000 down from $6.2 million at June 30, 1999. This is about $600,000 greater than the prudent reserve, defined as 10 percent of the total expense budget. Ms. Ratcliff reviewed the key labor costs imbedded in the 1999-2000 O&M Budget which make up the approximate $1 million increase in the 1999-2000 O&M Budget. Ms. Ratcliff highlighted significant changes in the 1999-2000 O&M Budget, noting that the technical services line item was increased when temporary labor was split out of the household hazardous waste disposal line item. Integrated Pest Management (lPM) grant revenues of $64,000 are offset by increased expenses of $110,000. Director of Administration Paul Morsen, Director of Engineering Jay S. McCoy, Director of Collection System Operations John A. Larson, and Director of Plant Operations James M. Kelly reviewed their respective departmental budgets. President Lucey thanked staff for their presentations and noted that approval of the O&M Budget will be calendared for consideration at the June 3, 1999 Board Meeting. b. 1 998-1999 CAPITAL IMPROVEMENT BUDGET THIRD QUARTER STATUS REPORT Mr. Batts, General Manager, introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who presented the 1998-1999 Capital Improvement Budget (CIB) Third Quarter Status Report. Mr. Miyamoto-Mills reviewed the major projects underway and key project expenditures in the Treatment Plant and Collection System Programs, noting that CIB expenditures at year end are projected to be $1.6 million, 7.3 percent, under budget. Mr. Miyamoto-Mills reviewed CIB revenues and noted that at year end CIB revenues are projected to be $20.4 million and expenditures are projected to be $26.4 million. The Sewer Construction Fund balance at July 1, 1998 was $48.4 million, plus projected 05 20 99 94 revenues of $20.4 million, less projected expenditures of $26.4 million, and less debt retirement of $835,000, results in a projected Sewer Construction Fund balance at June 30, 1999 of $41.6 million. President Lucey declared that 1998-1 999 Capital Improvement Budget Third Quarter Status Report was duly received. 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Nejedly requested that an update on the Pacheco Boulevard joint project with the City of Martinez be presented at a future Board Meeting. 16. CLOSED SESSION a. EXISTING LITIGATION This item was taken out of order earlier in the agenda. b. 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 to initiate or is deciding whether to initiate litigation. The subject of the potential litigation is the Standby Power Facility. At 5:45 p.m., President Lucey declared the closed session to discuss initiation of litigation pursuant to Government Code 54956.9(c) as noted above. Member Menesini excused himself and left the meeting at the hour of 5:55 p.m. At 6:00 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. 17. REPORT OF DISCUSSIONS IN CLOSED SESSION This item was taken out of order earlier in the agenda. 18. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 6:00 p.m. President of the Board of Di ctors, Central Contra Costa Sani ry District, County of Contra Costa, State of California COUNTERSIGNED: 05 20 99