Loading...
HomeMy WebLinkAboutBOARD MINUTES 07-01-99 112 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 1,1999 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 July 1, 1999. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Boneysteele, Lucey ABSENT: Members: Menesini, Hockett Member Hockett had advised staff that she would be unable to attend this meeting and had requested to be excused. Member Menesini entered the meeting at the hour of 2:08 p.m. a. INTRODUCE NEW EMPLOYEES . Susan Curl, Payroll Technician, Administrative Department . James Kneis, Instrument Technician, Plant Operations Department . Warren Gaines, Materials Services Supervisor, Administrative Department . Kimberly Greer, Safety and Risk Management Specialist, Administrative Department Ms. Susan Curl, Payroll Technician in the Administrative Department, Mr. James Kneis, Instrument Technician in the Plant Operations Department, Mr. Warren Gaines, Materials Services Supervisor in the Administrative Department, arid Ms. Kimberly Greer, Safety and Risk Management Specialist in the Administrative Department, were introduced by their supervisors and welcomed to the District by President Lucey and the Board of Directors. 2. PUBLIC COMMENTS None 3. HEARINGS a. CONDUCT PUBLIC HEARING AND CONSIDER INHABITED DISTRICT ANNEXATION 145. PARCELS 8 AND 9. AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) At 2:05 p.m., President Lucey opened the public hearing to receive and consider testimony from affected property owners before acting on proposed inhabited District Annexation 145, Parcels 8 and 9, as amended by the Local Agenda Formation Commission (LAFCO). It was noted that protests have been received. There being no comments, President Lucey closed the public hearing. It was moved by Member Boneysteele and seconded by Member Nejedly, that Resolution No. 99-070 be adopted, ordering completion of inhabited District Annexation 145, Parcels 8 and 9, as amended by LAFCO. Motion approved on the following vote: 07 01 99 113 AYES: Members: Boneysteele, Nejedly, Lucey NOES: Members: None ABSENT: Members: Hockett, Menesini 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO J. F. PACIFIC LINERS. INC. FOR MARTINEZ TRANSMISSION SEWER PROJECT - CHEMICAL TREATMENT. DP 5328 Mr. Charles W. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who stated that only one bid was received for this project for chemical coating of the Martinez Transmission Sewer. There is only one local bidder in Vacaville that does this type of work. The job was not large enough to attract the interest of other potential bidders from out of the area. If all bids were rejected and the project rebid, the window of time for applying the product would be missed and it is anticipated that new bids would not vary significantly from the original bid. If this chemical coating method is found to be successful, a potential replacement cost of $6 million for the gravity sewer portion of the Martinez Transmission Sewer would be delayed or avoided. Staff recommends that the District move forward at this time. Member Menesini entered the meeting at the hour of 2:08 p.m. Following discussion of the chemical coating process, it was moved by Member Nejedly and seconded by Member Boneysteele, that award of a construction contract be authorized to J. F. Pacific Liners, Inc., the lowest responsible bidder in the amount of $103,798.95 for cleaning, CCTV inspection, and alkaline slurry application to 15,300 lineal feet of reinforced concrete gravity sewer pipe for the Martinez Transmission Sewer Project - Chemical Treatment, DP 5328. There being no objection, the motion was approved with Member Hockett being absent. 6. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who provided an update on the joint project with the City of Martinez in which the City's contractor is installing a section of District sewer line in Pacheco Boulevard. Mr. Brennan reported that the contractor has followed through with correction of the deficiencies identified in the sewer line installation. Approximately 600 to 700 feet of pipe must still be TV inspected. The District's portion of the work will be completed when these TV inspections have been done. The City of Martinez estimates the balance of the project will be finished by the end of August. 2) Mr. Batts, General Manager, announced that the annual California Association of Sanitation Agencies (CASA) Conference will begin August 11, 1999. 3) Mr. Batts, General Manager, announced that Contra Costa Water District Los Vaqueros Recreation Groundbreaking will be held on July 24, 1999 at 10:00 a.m. 07 01 99 114 b. 4) Mr. Batts, General Manager, announced that the District's annual Summer Student Picnic will be held on July 14, 1 999 at noon at Hidden Lakes Park on Center Avenue in Martinez. 5) Mr. Batts, General Manager, stated that during the Operations and Maintenance (O&M) Budget approval process, one of the outstanding issues was the cost of retirement benefits. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that normally by this time the Contra Costa County Retirement Board has set the rates. This year the payroll information needed from Contra Costa County, the largest customer of the Retirement Office, has not yet been received. The Retirement Office has set a 0.38 percent interim increase. The Retirement Office will conduct an actuarial study later this summer and implement final rates on October 1, 1999. A 2 percent increase was included in the District O&M Budget. Mr. Batts, General Manager, introduced Mr. David Clovis, Safety and Risk Manager, who reported that the California Sanitation Risk Management Authority (CSRMA) agreement authorized by the Board at the last Board Meeting has been signed. District coverage has been placed with the Public Entity Property Insurance Program and the Liability Program. The District has renewed its workers' compensation insurance coverage with State Compensation Insurance Fund for the coming fiscal year. 6) 7) Mr. Batts, General Manager, announced that Public Employees Union, Local One, has assigned Mr. John Stallsmith as chief negotiator for the District effective June 25, 1999. Employees may request to have either Mr. Stallsmith or Mr. Jim Calvarese represent them on a grievance or an appeal. 8) Mr. Batts, General Manager, stated that at the Capital Improvement Budget workshop, the Board expressed an interest in the Treatment Plant Seismic Project. There is now sufficient work completed to be viewed on a tour. If there is interest from the Board, a tour can be scheduled. 9) Mr. Batts, General Manager, announced that TOSCO Refinery has requested that the District consider taking its effluent for treatment. An initial meeting has been held and a feasibility and cost study will be undertaken by the Refinery staff, District staff, and Montgomery Watson Engineers. The Board will be kept apprised. Discussion followed in which the Board indicated that no commitments should be made to TOSCO Refinery at this time and that the Board should be kept advised. COUNSEL FOR THE DISTRICT 07 01 1 ) Mr. Kenton L. Aim, Counsel for the District, provided a brief update on the status of appeals of National Pollutant Discharge Elimination System (NPDES) permits. Mr. Aim stated that this issue has been discussed with the Board in the past. Each of the last four or five NPDES permit renewals for significant dischargers in the Bay Area have been appealed. Petitions have been filed in each for review by the State Board. These issues can affect Central Contra Costa Sanitary District because the District's NPDES permit renewal is coming up on May 25, 2000. Sonoma Valley Sanitation District was granted an NPDES permit renewal and that District filed a petition because they felt some of the criteria were unjustifiably stringent. The NPDES permits for Fairfield-Suisun Sewer District, City of Petaluma, Novato Sanitary District, and Rhodia have all been appealed by an environmental group, Baykeeper. At issue is metal loading to the Bay (nickel, copper, mercury, and in the case of Rhodia, selenium). Other issues include pesticides, dilution credits, and implementation of mass limits (waste load allocations). Baykeeper's position is that no dilution credit should be 99 115 given for metals on the recently promulgated 303(d) (non-attainment) list and it is arguably not acceptable to contribute any additional amounts of those constituents. Baykeeper further asserts that mass limits should be imposed for all of the items on the 303(d) list and the mass limits should be set at minimum at the 99.7 percentile of the plant performance for the last four years. Mr. Aim stated that the result of such a limit is, absent more source control, the District would not be able to take on new customers and comply with the mass limit. Additionally, there are some very significant legal issues. There is a provision in the Clean Water Act called the Anti- Back Sliding Rule. Environmentalists are taking the position that mass limits should be imposed now; but on the other hand, it is a violation of that anti- backsliding provision to put in interim limits higher than present performance. Under such an interpretation, the District could never receive any benefit of the Total Mass Daily Limit (TMDL) process if that statutorily mandated process produced a more favorable result. Discussion followed with regard to metal sources other than from publicly owned treatment works (POTW's). c. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, distributed copies of the Central Contra Costa Sanitary District Pipeline newsletter, which will be mailed to District customers during the coming week. d. BOARD MEMBERS 1 ) President Lucey and Member Boneysteele briefly discussed the status of AB 1549, which mandates ward elections of the District Board of Directors. 2) Member Menesini announced that the Environmental Alliance will hold a workshop on July 19, 1999, at which Mr. Charles Batts will discuss the National Pollutant Discharge Elimination System (NPDES) Permit Process. 7. ENGINEERING a. ORDER COMPLETION OF DISTRICT ANNEXATION 145. PARCELS 1 THROUGH 7 AND 10 Following discussion of annexation of properties with failing septic tanks, it was moved by Member Menesini and seconded by Member Boneysteele, that Resolution No. 99-071 be adopted, independently finding that the subject annexation is categorically exempt from the California Environmental Quality Act (CECA), and ordering the completion of District Annexation 145, Parcels 1 through 7 and 10. Motion approved on the following vote: AYES: Members: Menesini, Boneysteele, Nejedly, Lucey NOES: Members: None ABSENT: Members: Hockett b. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO THE AGREEMENT WITH TAP RESOURCES DEVELOPMENT GROUP. INC. FOR CONTINUATION OF THE DESIGN AND IMPLEMENTATION OF EFFECTIVE ORGANIZATIONAL CHANGE IN THE ENGINEERING DEPARTMENT Mr. Batts, General Manager, stated that a presentation was made at the last Board Meeting on the organizational change process underway in the Engineering Department. Staff would recommend approval of the amendment to the agreement with TAP Resources which will continue that effort. 116 It was moved by Member Menesini and seconded by Member Nejedly, that the General Manager be authorized to execute an amendment to the agreement with TAP Resource Development Group, Inc. in an amount not to exceed $5,000 for continuation of the Engineering Department organizational change work. There being no objection, the motion was approved with Member Hockett being absent. c. AUTHORIZE EXECUTION OF AN AGREEMENT WITH WILLIAM R. AND LANA J. BURNS RELATIVE TO CONSTRUCTION OF STORM DAMAGE REPAIRS AT 1232 CARMEL COURT. WALNUT CREEK. 1998 STORM DAMAGE REPAIR PROJECT. DP .5..2.Q.5. Mr. Batts, General Manager, stated that this is a cooperative agreement between the District and the homeowner to expedite a storm damage repair. Mr. Batts introduced Mr. Curt Swanson, Environmental Services Division Manager, who stated that the District owns an easement across the Burns' property. Mr. Swanson described the location of the property and the District easement. Erosion of the creek bank and yard have occurred over a number of years. Temporary repairs have been done over the years to slow down the erosion. The Burns approached the District about doing a permanent repair to save their property and the District pipeline. It is proposed that a gabion basket wall be installed. Mr. Swanson stated that the cost of this repair is estimated to be $84,000. It is proposed that the Burns and the District share this cost equally. The Burns will be responsible for design and construction. Engineered Soils Repairs, Inc. has been selected as the contractor by the Burns. The contractor will provide insurance naming the District as an additional insured during construction. The District will review the design and conduct periodic inspections during construction. The District will assist the Burns in obtaining the necessary permits. The costs will be shared on a 50/50 split. The Burns will assume responsibility for maintenance of the gabion basket wall and their property. The District will maintain its easements and pipe. Following discussion of the neighboring properties, it was moved by Member Menesini and seconded by Member Boneysteele, that the General Manager be authorized to execute an agreement with William R. and Lana J. Burns, property owners of 1232 Carmel Court, Walnut Creek, relative to construction of a gabion basket wall to repair storm damage, 1998 Storm Damage Repair Project, DP 5205. There being no objection, the motion was approved with Member Hockett being absent. 8. TREATMENT PLANT a. AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A NATURAL GAS PURCHASE AGREEMENT Mr. Batts, General Manager, stated that at a previous Board Meeting, the Board was advised that the District would be buying natural gas on a month to month basis pending entering into a natural gas purchase agreement. Mr. Batts introduced Mr. James L. Belcher, Senior Engineer, who stated that the current one-year fixed contract expired June 30, 1999. At that time the District opted to purchase natural gas on a month to month basis while evaluating when to commit to a longer term contract. The gas market has been very volatile in the last six months. Mr. Belcher stated that District staff has been told by our experts that the gas prices are expected to soften in the August-October time frame. Authorization is requested for the General Manager to act quickly when that occurs with the caveat that the price not exceed $2.70 per decatherm. President Lucey asked if there was a possibility that the natural gas cost could be more than $2.70 per decatherm. Mr. Belcher stated that while natural gas prices are expected to soften, they might not. In that case, staff would return to the Board to provide an update and recommended course of action. It was moved by Member Boneysteele and seconded by Member Menesini, that the General Manager be authorized to enter into a natural gas purchase agreement for an 117 original term of one year or less at a price not to exceed $2.70 per decatherm. There being no objection, the motion was approved with Member Hockett being absent. 9. APPROVAL OF MINUTES a. MINUTES OF JUNE 3. 1999 It was moved by Member Boneysteele and seconded by Member Nejedly, that the minutes of June 3, 1999 be approved as presented. There being no objection, the motion was approved with Member Hockett being absent. 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JULY 1. 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 July 1, 1999, including Self Insurance Check Nos. 101549- 101550, Running Expense Check Nos. 118666-118892, and Sewer Construction Check Nos. 21257-21288, be approved as recommended. There being no objection, the motion was approved with Member Hockett being absent. 11. BUDGET AND FINANCE a. RECEIVE MAY 1999 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of May 1999, noting that expenditures were $45,000 less than budget, representing a 1.8 percent favorable variance. Year to date expenditures were $1.4 million less than budget, representing a 4.7 percent favorable variance. Year to date revenues of $28 million were $453,000 greater than budget, representing a 1.6 percent favorable variance. 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 4.529 percent to 5.995 percent. The latest interest rate as of May 1999 was 4.6 percent. The average yield for the District's LAIF account through April 1999 was 5.11 percent. Following discussion of overages in the repairs line item and questions concerning various revenue line items, President Lucey declared that the May 1999 Financial Statements were duly received. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None BREAK At 3:35 p.m., President Lucey declared a recess, reconvening at the hour of 3:45 p.m., with all parties present as previously designated. 07 01 99 118 14. CLOSED SESSION a. REAL PROPERTY NEGOTIATIONS With respect to real property negotiations, the closed session was held pursuant to Government Code Section 54956.8. The real property which the negotiations may concern is the property at 4849 Imhoff Place, Martinez, California, and adjacent properties. The District's negòtiators may negotiate with representatives of Contra Costa County . b. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. One potential matter. 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 to initiate or is deciding whether to initiate litigation. One potential matter. At 3:45 p.m., President Lucey declared the closed session to discuss real property negotiations and anticipated litigation as noted above. At 4:20 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION Mr. Aim, Counsel for the District, stated that no decisions were made or votes taken in closed session which require reporting at this time. 16. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 4:22 p.m. President of the Board of rectors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se r ta of the Central Co ra Costa Sanltary District, County of Contra Costa, State of California 07 01 99