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HomeMy WebLinkAboutBOARD MINUTES 11-04-99 177 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 4, 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 November 4, 1999. 1. ROLL CALL PRESENT: MEMBERS: Nejedly, Hockett, Boneysteele, Lucey ABSENT: MEMBERS: Menesini President Lucey announced that Member Menesini is not present because he is in Sacramento at the Governor's Office accepting, on behalf of the District, the Integrated Pest Management (lPM) Innovator Award for 1999. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Boneysteele and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. and b., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The Grant of Easement from Marilouise Sanford Lewis was accepted and the quitclaim of an existing easement to Marilouise Sanford Lewis was approved in connection with the South Orinda Sewer Improvements Project, District Project No. 4928; staff was authorized to record said Grant of Easement and Quitclaim Deed with the Contra Costa County Recorder; and Resolution Nos. 99-113 and 99-114 were adopted to that effect. Motion approved on the following vote: AYES: Members: Boneysteele, Hockett, Nejedly, Lucey NOES: Members: None ABSENT: Members: Menesini b. The Board's regularly scheduled meeting of November 18, 1999, was established as the date for a public hearing to receive comments on proposed revisions to Conditionally Exempt Small Quantity Generators (CESQG) charges for small businesses that use the services of the Household Hazardous Waste Collection Facility (HHWCF). Motion approved on the following vote: AYES: Members: Boneysteele, Hockett, Nejedly, Lucey NOES: Members: None ABSENT: Members: Menesini 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Mr. Charles W. Batts, General Manager, requested that Item 9.c., Budget and Finance, be taken out of order at this time. While staff believes this is an administrative change, 11 04 99 178 Ms. Stella Cerlock, of National Deferred Compensation, Inc., is present to answer any Board questions about the company or about the agreement. 9. BUDGET AND FINANCE c. AUTHORIZE ASSIGNMENT OF ADMINISTRATION AGREEMENT DEFERRED COMPENSA TION PLAN Mr. Batts, General Manager, stated that Washington Mutual Bank, FA is no longer providing deferred compensation plan management. The change to the new firm of National Deferred Compensation, Inc. is recommended by the District's Deferred Compensation Plan Advisory Committee. There being no questions from the Board it was moved by Member Boneysteele and seconded by Member Hockett, that the assignment of the District's Deferred Compensation Plan Administrative Agreement from Washington Mutual Bank, FA to National Deferred Compensation, Inc. be authorized. The motion was approved on the following vote. AYES: Members: Boneysteele, Hockett, Nejedly, Lucey NOES: Members: None ABSENT: Members: Menesini At this time, President Lucey reverted back to the order of the agenda. 5. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, reported that under the conditions of our current permit, the District must send the Regional Board a letter requesting renewal of our National Pollutant Discharge Elimination System (NPDES) Permit, which expires on May 24, 2000. This letter by the District initiates the application process for reissuance of the permit. Mr. Batts introduced Dr. Gail Chesler, Associate Engineer and chairperson of the Bay Area Dischargers Association (BADA) Permit Committee, and Mr. Doug Craig, the Plant Operations Division Manager, to discuss permit issues and to outline the process by which the District will receive its new NPDES permit. Dr. Chesler and Mr. Craig, who will be involved in the reissuance of the District's permit, gave the following report. Mr. Craig began the discussion by talking about air permit issues. The Title V air permit requirements came out of the 1990 Clean Air Act Amendments. The District's Title V permit is a consolidation and clarification of all of the District's air permits and it is expected that the Air Board will issue the permit in December 1999. The District has been working with the Air Board staff for two years on Title V permit issues. The Title V permit will allow a more flexible furnace operation. The District will be able to feed more sludge to one furnace and thereby defer the simultaneous use of two furnaces. The use of two furnaces is less efficient and requires more operator attention. The Title V permit will require increased testing and reporting. Mr. Craig also indicated that the 503 sludge regulations, issued in 1993, have air quality requirements which the District's multiple hearth furnaces must meet. Initially, there was a concern that the multiple hearth furnaces would be regulated under the Clean Air Act with the same emission requirements as solid waste combustors. The District's furnaces could not meet those proposed requirements for nitrogen oxide and carbon monoxide. Fortunately, the final decision by the Environmental Protection Agency was to regulate the furnaces under the Clean Water Act. These requirements include the installation of a total hydrocarbon analyzer on each furnace. 11 O~¿i '" -.. 99 179 President Lucey asked Mr. Craig the approximate cost of the analyzers and Mr. Craig responded that each analyzer will cost approximately $300,000. Mr. Craig then introduced Dr. Gail Chesler. Dr. Chesler stated that SB 709 is a very hot state-wide issue and makes this permit renewal process very important. SB 709 requires minimum mandatory penalties of $3,000 for each permit violation. This bill as written does not currently apply to collection systems permit violations. Dr. Chesler further stated that the 303(d) list pollutants which are of most concern to the District and which impair Suisun Bay are mercury, copper, and diazinon. During the NPDES permit application process, the District will discuss the permit issues with the Regional Board and submit an application package, "Report of Waste Discharge." The Regional Board staff will then release an Administrative Draft of the permit and the District will negotiate various provisions with the Regional Board staff. The Regional Board staff will then issue a tentative order and hold a public hearing where the public may comment in writing or at the hearing. Subsequent to this the Regional Board votes and any party "with standing" can appeal to the State Board. The State Board has one year to rule on the permit. Any party "with standing" can then file a suit in court. The District will be requesting a Treatment Plant capacity increase. The Treatment Plant capacity is currently permitted at 45 MGD. The District conducted a Treatment Plant Capacity Evaluation which concluded that the actual Treatment Plant capacity is approximately 54 MGD. The increase in capacity is a result of various project modifications which the Board approved over the past several years. The District will also be requesting a change in the Fecal Coliform Standard which is now 200 MPN per 100 milliliters to a proposed standard of 500 MPN per 100 milliliters. The change in the fecal coliform requirement is consistent with approved changes which have already occurred at other local agencies (East Bay Municipal Utility District, San Francisco, and East Bay Dischargers' Authority). The District conducted a beneficial use study which indicates that our effluent fecal coliform has little impact on Suisun Bay. The major contributor of fecal coliform to Suisun Bay is from the discharge of Walnut Creek. Mr. Craig indicated that the change in the fecal coliform requirement would result in an increase in the ultraviolet disinfection system capacity and could result in reduced annual energy costs. Board Member Hockett asked why the District is requesting an increase in our effluent fecal coliform requirement. Mr. Craig responded that the request is consistent with the Basin Plan requirements. The District conducted a beneficial use study which indicated that the area around our outfall does not have body contact recreation. Mr. Craig stated that the Basin Plan actually allows for higher fecal coliform densities than the District is requesting. The District will also be requesting a reduction in the number of analytical tests required in our NPDES Permit. Some pollutants are never detected in our effluent and less frequent testing seems appropriate. Mr. Craig indicated that the constituents of concern in renewing the NPDES Permit are the 303(d) listed pollutants previously discussed, effluent toxicity, and cyanide. The District was recently required to identify the most sensitive species to be used in future toxicity tests. The District identified abalone as the most sensitive species to our effluent. The abalone test is more sensitive to our effluent than the echinoderm test previously used in our toxicity tests. The District has completed three toxicity tests to dat~ using abalone and all have been below the toxicity standard. Staff will be conducting more tests in the future to ensure that the District can consistently achieve the toxicity standard with abalone. The Regional Water Quality Control Board is considering lowering the District's permit requirements for cyanide from 25 pg/l to 10 pg/l. A District 11 04 99 180 11 study identified the source of cyanide in our effluent to be from the scrubber water used by the multiple hearth furnaces. The District has made modifications in the operation of the furnaces which have lowered the cyanide concentration in the effluent. Staff is still concerned that the 10 pg/I requirement may not be achievable on a consistent basis and therefore will be requesting an interim permit limit. The current status of the San Francisco Regional Water Quality Control Board is that three Board Members of nine are seated. Eight of nine Regional Boards in the state lack a quorum. The State Board has a quorum and may elect to act if the Regional Boards do not have a quorum. The Environmental Protection Agency may also elect to issue permits. There have been ten permits approved by our Regional Board to date (1998- 1999). All have been appealed except Los Galinas. The Regional Water Quality Control Board has a goal of processing 40 permits by June 2000. One permit has been approved to date. 2) Mr. Batts, General Manager, stated that on the Consent Calendar earlier in the agenda was an item setting a public hearing to set charges for the Household Hazardous Waste Collection Facility's Small Business Program which is scheduled on Wednesdays of each week. By Board policy these charges are set to recoup the disposal costs only, while our residential customers are not charged for the service. The rates that will be proposed as the new charges to small businesses will be based on our new and modestly lower disposal charges from Phillips Services Corporation, the firm that we contract for various services at this facility. If the Board still concurs with this policy, then it is in the best interest to fix at its present rate the one charge that could increase from this proposal - the charge for bulked antifreeze. The proposed charge was $1.53/gallon compared to the present charge of $1 .40/gallon. If the Board concurs, then the District would leave this charge at the $1 .40/gallon when presenting the proposed charges to the Board at the public hearing set for November 18, 1999. Following discussion, is was the consensus of the Board that staff will present rates at the public hearing that will not raise any of the charges to small businesses at the Household Hazardous Waste Collection Facility. 3) Mr. Batts, General Manager, stated that the District is required to perform an arbitrage calculation to ensure that the District is not making money on the funds held for payment of refinance bonds that have a future call date. To ensure this, the District is asked to do a very laborious arbitrage calculation. Mr. Batts then introduced Ms. Debbie Ratcliff, Controller, who explained the arbitrage calculation. Ms. Ratcliff, Controller, reported that every five years the District is required to have an arbitrage calculation done on our Certificates of Participation and Revenue Bonds. Each construction payment of the funds is looked at as well as each principle and interest payment on the bonds. Also, a time limit of 18 months is looked at in terms of spending construction fund money. The reserve account is looked at as well in terms of interest income. The final analysis showed that our reserve account earned higher interest income (7.19 percent) than the interest expense paid on the bonds (6.3 percent). A portion of that overage must be rebated back to the Internal Revenue Service. The District must rebate back 90 percent of the interest over and above the interest rate on the bonds and is allowed to keep 10 percent. This overage is good. We had a positive liability. This is better than a negative liability when you have no rebate, but you also are not covering the interest expense. The final rebate amount is a little under $21,000. 04 99' .. 4) 6) 7) 8) 9) 10) 11 ) 12) 13) 181 Mr. Batts, General Manager, announced that the District is advertising for the Laboratory Improvements Project, DP 7172. The engineer's estimate for this project is $~,OOO,OOO. 5) Mr. Batts, General Manager, announced that the District will sole source the purchase of low Nox modifications required by the Bay Area Air Quality Management District for the auxiliary boilers located in the Solids Conditioning Building. These units will be factory developed modifications from the original equipment manufacturer, Cleaver-Brooks. Mr. Batts, General Manager, announced that on November 3, 1999 the District advertised a "Notice to Contractors" for the termination of the bid request for the cathodic protection modifications due to some unresolved right-of-way issues with the recycled water line - Collection System Cathodic Protection, DP 6142. Mr. Batts, General Manager, announced the completion of the purchase of the Contra Costa County Animal Services Facility and adjoining properties. The County Board of Supervisors approved the final sale on Tuesday, November 2nd and escrow closed today. The County will lease these facilities from the District for the next three years while the County builds new facilities. Mr. Batts, General Manager, announced that on September 25, 1999, a Household Hazardous Waste Temporary Collection Event was held in Lafayette. There were 184 participants, mainly from the Lafayette, Orinda, Moraga, and Walnut Creek area. Another event is scheduled for Saturday, November 13, 1999, in the Danville and San Ramon area. 130 people have already signed up for this event. Mr. Batts, General Manager, announced that, regarding the Dougherty Valley Tunnel and Trunk Sewer, the Dougherty Valley developers now have an agreement that will guarantee them water and are anxious to start building. The District must still obtain a construction agreement with the developers and must secure the needed easements. At this time the District knows of several easement issues within the San Ramon city limits that are contentious. The District is planning to work on this project in the next year. Mr. Batts, General Manager, announced that the District has served Ms. Joan Lindroth, of Lost Valley in Orinda, and will obtain a Temporary Restraining Order tomorrow to allow District staff to winterize her property. At this point she appears willing and cooperative to let the District winterize the site. Mr. Batts, General Manager, announced that Mr. Rich Soychak, Maintenance Technician III, Mechanical, who was injured in a lost-time accident on April 14, 1999, returned to work on October 1, 1999. He is working in the Mechanical Maintenance Shop on modified duty because of restrictions currently placed on him by his doctor. He seems to be feeling fine and would like to take on additional tasks. Mr. Batts, General Manager, announced that the District has reached a settlement on the termination arbitration with Walter Norman and Public Employees' Union Local No.1. The final settlement will end Mr. Norman's appeal. The settlement was for $2,100 which is less than the cost of continued arbitration. Mr. Batts, General Manager, reminded the Board of the 1999 Employees' Service Awards Luncheon which will be held at Vic Stewart's 'in Walnut Creek at 11 :30 a.m. on November 17, 1999. 11 04 99 182 14) 15) Mr. Batts, General Manager, reminded the Board that the Employees' Activity Committee will hold the annual District Holiday Party on Saturday, November 13, 1999 at Zandonella's Italian Restaurant at the Delta View Golf Course in Pittsburg. Social hour will begin at 7 p.m. and dinner will be at 8 p.m. The last day to RSVP is Monday, November 8, 1999. Mr. Batts, General Manager, announced that the District will kick off its Year 2000 United Way Campaign with an annual breakfast on Thursday, November 18, 1999, from 7 a.m. to 9 a.m. and everyone is welcome. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD OF DIRECTORS 1 ) 2) Member Hockett reported on the October 28, 1999, Sanitation and Water Agencies Meeting stating that Contra Costa County District 5 Supervisor, Mr. Joe Canciamilla was the guest speaker. He spoke about the Urban Limit Line in the County using maps to show where the lines are proposed in the different areas. Some want more development, while others want to keep open space and agriculture. President Lucey invited the Board, the Directors, and the Managers to his home for an open house on Sunday, December 12, 1999. 6. ENGINEERING CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR THE PROPERTIES ON MUIR LANE IN ALAMO FOR INSTALLATION OF SEWER IMPROVEMENTS: ADOPT RESOLUTIONS OF INTENTION TO CREATE MUIR LANE CAD NO. 99-2. FOR APPROVAL OF THE BOUNDARY. AND REQUESTING CONSENT OF CONTRA COSTA COUNTY FOR CCCSD TO CONDUCT PROCEEDINGS FOR THE CAD a. Mr. Batts, General Manager, stated that the Muir Lane Contractual Assessment District (CAD) and the next position paper for the Vine Hill Way CAD are part of Mr. Jay McCoy's, legacy. These sewer improvements will be paid for by the participants with financing by the District. Mr. Batts introduced Mr. Curt Swanson, Provisional Manager of the Environmental Services Division of the Engineering Department, who gave the Board a short update on these two CAD's. Mr. Curt Swanson stated that the Board is being requested to consider initiating the formation of a CAD for properties on Muir Lane in Alamo. He reported that signed interest forms have been received from eight of the thirteen property owners whose properties would benefit from the CAD sewer. The estimated cost for administration, design, and construction of the CAD sewer is $200,000. Estimated assessment for eight participants would be $25,000. The estimate for thirteen participants would be $ 1 5,385. The CAD is being requested by the homeowners because of failing septic tanks. Following discussion it was moved by Member Hockett and seconded by Member Nejedly that the formation of a CAD consisting of 13 properties on Muir Lane in Alamo be authorized; that Resolution No. 99-115, a resolution of intention to create Muir Lane Contractual Assessment District No. 99-2 for the purpose of installing sewer improvements be adopted; that Resolution No. 99-116, be adopted, approving the boundary of the assessment district; and that Resolution No. 99- 117, be adopted, requesting consent from Contra Costa County for the CCCSD to conduct proceedings for Muir Lane CAD No. 99-2. The motion was approved on the following vote: 11 04 99 183 AYES: Members: Hockett, Nejedly, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Menesini b. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON VINE HILL WAY IN MARTINEZ FOR INSTALLATION OF SEWER IMPROVEMENTS: ADOPT RESOLUTIONS OF INTENTION TO CREATE VINE HILL WAY CAD NO. 99-3. FOR APPROVAL OF THE BOUNDARY. AND REQUESTING CONSENT OF THE CITY OF MARTINEZ FOR CCCSD TO CONDUCT PROCEEDINGS FOR THE CAD Mr. Curt Swanson, Provisional Manager of the Environmental Services Division, stated that the Board is being requested to consider initiating the formation of a CAD for properties on Vine Hill Way in Martinez. He reported that signed interest forms. have been received from four of the six property owners whose properties would benefit from the CAD sewer. The estimated cost for administration, design, and construction of the CAD sewer is $75,000. Estimated assessment for four participants would be $18,750. The estimate for six participants would be $ 1 2,500. The CAD is being requested by the homeowners because of failing septic tanks. One of the properties has no house on it at the present time and needs this CAD to be able to build. It was moved by Member Hockett and seconded by Member Nejedly that the formation of a CAD consisting of six properties on Vine Hill Way in Martinez be authorized; that Resolution No. 99-118, a resolution of intention to create Vine Hill Way Contractual Assessment District No. 99-3 for the purpose of installing sewer improvements be adopted; that Resolution No. 99-119, be adopted, approving the boundary of the assessment district; and that Resolution No. 99-120, be adopted requesting consent from the City of Martinez for the CCCSD to conduct proceedings for Vine Hill Way CAD No. 99-3. The motion was approved on the following vote: AYES: Members: Hockett, Nejedly, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Menesini 7. APPROVAL OF MINUTES a. MINUTES OF OCTOBER 7. 1999 It was moved by Member Boneysteele and seconded by Member Hockett, that the minutes of October 7, 1999 be approved as presented. There being no objection, the motion was approved with Member Menesini being absent. 8. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED NOVEMBER 4. 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 November 4, 1999, including Self-Insurance Check Nos. 101576 - 101577, Running Expense Check Nos. 121074 - 121337, and Sewer Construction Check Nos. 21620 - 21671, be approved as recommended. There being no objection, the motion was approved with Member Menesini being absent. 11 04 99 184 9. BUDGET AND FINANCE a. RECEIVE SEPTEMBER 1999 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of September 1999, noting that expenditures were $228,000 less than budget, representing a 8.4 percent favorable variance. Year to date expenditures were $ 1,138,000 less than budget, representing a 13.6 percent favorable variance. Year to date revenues of $ 1 ,639,000 were 4.9 percent below 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 4.5 percent to 5.7 percent. The latest interest rate as of August 1999 was 5.7 percent. The average yield of the LAIF account through August 1999 was 5.2 percent. b. RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30. 1999. AND APPROVE EXTENDING HOOD & STRONG FOR A SIXTH YEAR Mr. Batts, General Manager, stated that the Audited Financial Statements for the fiscal year ended June 30, 1999, and the approval to extend Hood & Strong for a sixth year is being submitted to the Board. It has been reviewed by the Board's Budget and Finance Committee. Mr. Batts introduced Ms. Debbie Ratcliff, Controller, who reported on the Audited Financial Statements. Ms. Ratcliff reported that the external audit was compiled by Hood & Strong and has been reviewed in detail with the Board Budget and Finance Committee. No management letter was issued as there were no significant control issues. The Board Budget and Finance Committee has recommended that Hood & Strong be extended to a sixth year due to its good performance and reasonable rates. The Board is being asked to approve this extension tonight. Ms. Ratcliff reported that the final audit numbers were very close to budget. Revenues were $31,137,000 and the budget was $31,168,000. Expenses were $32,646,000 and the budget was $32,827,000. Reserves were reduced by $1,508,000 to a new fund balance of $5,724,000. President Lucey commented that this is the only time that he has seen an audited financial statement that did not receive a management letter and he commended staff on this. It was moved by Member Boneysteele and seconded by President Lucey that the audited financial statements for the fiscal year ended June 30, 1999 be received and the extension of the audit term of Hood & Strong from five to six years be approved. There being no objection, the motion was approved with Member Menesini being absent. c. AUTHORIZE ASSIGNMENT OF ADMINISTRATION AGREEMENT DEFERRED COMPENSATION PLAN Item 9.c., Authorize Assignment of Deferred Compensation Plan Administration Agreement, was taken out of order earlier in the agenda. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 11 04 99 185 12. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 3: 1 0 p.m. President of the Board of Director, Central Contra Costa Sanitary O' trict, County of Contra Costa, State f California COUNTERSIGNED: 11 04 99