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HomeMy WebLinkAboutBOARD MINUTES 05-21-98 120 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 21, 1998 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 21, 1998. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Lucey, Menesini, Hockett, Boneysteele, Nejedly ABSENT: Members: None 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF SAFETY SUGGESTION OF THE YEAR AWARD FOR 1996 TO MR. KENNETH HARRISON. MAINTENANCE TECHNICIAN III. MECHANICAL. PLANT OPERATIONS DEPARTMENT AND SAFETY SUGGESTION OF THE YEAR AWARD FOR 1997 TO MR. ALLEN CAMBRON. ELECTRICAL TECHNICIAN. PLANT OPERATIONS DEPARTMENT Mr. Roger J. Dolan, General Manager-Chief Engineer, introduced Mr. Steve Larsen, Chair of the District Safety Committee. Mr. Larsen stated that one of the keys to the District's Safety Program is employee participation. We try to generate employee participation and awareness through the Safety Suggestion Program, among other things. At least one safety suggestion is selected for recognition each month. Mr. Allen Cambron's safety suggestion was selected to receive the Safety Suggestion of the Year Award for 1997. Mr. Cambron suggested that the control circuit transformer for the bypass from the transformer for the control in the variable frequency driver (VFD) at the Maltby Pumping Station be isolated. When these two circuits were connected together, it allowed the VFD to be supplied with 480 volts of electricity even though the VFD circuit breaker was off. By separating these two circuits, a second source that created an unexpected high voltage within the VFD cabinet was prevented. The Safety Suggestion of the Year Award for 1997 was presented to Mr. Allen Cambron and he was commended for his outstanding suggestion and for his concern for the safety of District employees. It was noted that presentation of the Safety Suggestion of the Year Award for 1996 was deferred to June 9, 1998. b. RECEIVE AWARD OF EXCELLENCE IN COMMUNICATIONS FOR A ONE-TIME PUBLICATION FROM THE CALIFORNIA ASSOCIATION OF PUBLIC INFORMATION OFFICERS (CAPIO) FOR THE DISTRICT'S TOUR BROCHURE Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Tim Tullis, Public Information and Production Assistant II, who stated that the District received the Third Place Award for Excellence in Communication for a One-Time Publication for the District's tour brochure. Copies of the tour brochure were distributed. Mr. Tullis stated that most of the work on this brochure was done in house. The "following the flow" diagram has been used in a number of other publications. The Board recognized the Communications Services staff for their fine work. 05 21 98 121 4. CONSENT CALENDAR Following discussion of delivery of recycled water, it was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through k., be approved as recommended, resolutions adoPted as appropriate, and recordings duly authorized. . Resolution No. 98-049 accepting an easement at no cost to the District from UDC Homes, Inc., Job 1001, Parcel 83 A through I, Rossmoor area, was adopted and recording was authorized. a. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: b. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None Resolution No. 98-050 accepting work and Offers of Dedication from California Kosaido, Inc., doing business as Canyon Lakes Country Club, Job 5211, Parcel 1, San Ramon area, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly None None Resolution No. 98-051 accepting work and Offers of Dedication from California Kosaido, Inc., doing business as Canyon Lakes Country Club, Job 5211, Parcel 2, San Ramon area, was adopted and recording was authorized. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None Resolution No. 98-052 accepting work and Offers of Dedication from California Kosaido, Inc., doing business as Canyon Lakes Country Club, Job 5211, Parcel 3, San Ramon area, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: e. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None Resolution No. 98-053 accepting work and Offers of Dedication from Canyon Green Homeowners Association, Job 5211, Parcel 4, San Ramon area, was adopted and recording was authorized. 05 21 98 122 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: f. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None Resolution No. 98-054 accepting work and Offers of Dedication from William C. Flett and Elaine T. Flett, Trustees, Job 5229, Parcel 1, Danville area, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly None None Grant of Easement was accepted from William C. Herbert and Roxana L. Herbert for a sanitary sewer easement at 115 Russell Drive, Walnut Creek, in connection with the Lakewood Sewer Renovation Project, DP 4805; staff was authorized to record said Grant of Easement with the Contra Costa County Recorder; and Resolution No. 98-055 was adopted to that effect. g. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: h. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None The contract work for the construction of the Orinda Crossroads, Moraga and Lower Orinda Pumping Stations Improvements, Phase II, Project, DP 4898, was accepted and the filing of the Notice of Completion was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: i. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None The contract work for the Recycled Water Customer Connections Project, DP 7181, in Pleasant Hill and Concord, was accepted and the filing of the Notice of Completion was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: J. 05 21 Hockett, Menesini, Lucey, Boneysteele, Nejedly None None June 9, 1998, at 2:00 p.m. was set as the date and time for a public hearing to receive comments on the draft Fiscal Year 1998-1999 Capital Improvement Budgetl1998 Capital Improvement Plan. 98 123 Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None k. The attendance of Mr. Ricardo Hernandez, Engineering Assistant, was authorized at the International Right of Way Association's Annual Education Seminar from June 28 through July 2, 1998, in Minneapolis, Minnesota, at a cost of $1,500. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly None None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER President Nejedly indicated that a request has been received to take Engineering Items 8.a., 8.b., and 8.c. out of order. President Nejedly proceeded to Item 8., Engineering. 8. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH WINDEMERE RANCH PARTNERS AND SHAPELL INDUSTRIES OF NORTHERN CALIFORNIA FOR REIMBURSEMENT OF PLANNING. DESIGN. CONSTRUCTION. AND PROPERTY RIGHTS ACQUISITION COSTS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 b. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH WOODWARD-CLYDE CONSULTANTS TO PROVIDE PRELIMINARY AND FINAL DESIGN SERVICES FOR THE TUNNEL PORTION OF THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 c. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH BROWN AND CALDWELL TO PROVIDE PRELIMINARY AND FINAL DESIGN SERVICES FOR THE TRUNK SEWER PORTION OF THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 Mr. Thomas J. Koch, of Shapellindustries of Northern California, expressed support for the staff recommendation and tremendous appreciation for the staff efforts, especially Principal Engineer Jarred Miyamoto-Mills and District Counsel Kenton L. Aim. Mr. Koch stated that this has been a lengthy and complicated process. Mr. Dan Coleman, of Windemere Ranch Partners, thanked District staff for their assistance through this process. Mr. Coleman stated that the Association of Bay Area Governments (ABAG) Finance Committee will meet today to consider approval of the next round of bond financing for this work. Mr. Jarred Miyamoto-Mills, Principal Engineer, showed a map of the location of the Windemere and Shapell properties and the areas tributary to the Dougherty Tunnel. Mr. Miyamoto-Mills reviewed the changes to the proposed agreement last considered by the Board on February 5, 1998. . Shapell has been added as a party. . Provisions have been included for potential "who goes first" situations. 05 21 98 124 The key elements of the Agreement with Windemere and Shapell are as follows: . The District will design and build the Dougherty Tunnel and Trunk Sewer Project. . Windemere will pay for the design. . The first developer who needs service will be the "installer," and will pay for construction. . A construction financing agreement is required prior to advertising the project for bidding. Mr. Miyamoto-Mills reviewed the project cost estimate for planning and engineering activities conducted prior to March 31, 1998, design, right of way, construction, and contingency, totaling $16,630,000. Following discussion of the consultant selection process and the qualifications of the consultants recommended, it was moved by Member Hockett and seconded by Member Lucey, that the General Manager-Chief Engineer be authorized to execute the proposed agreement with Windemere Ranch Partners and Shapell Industries of Northern California for reimbursement of planning, design, property rights acquisition, and construction costs for the Dougherty Tunnel and Trunk Sewer Project, DP 5902; that the General Manager- Chief Engineer be authorized to execute an agreement with Woodward-Clyde Consultants with a cost ceiling of $530,000 to provide preliminary and final design services and geotechnical engineering services for tunnel portion of the Dougherty Tunnel and Trunk Sewer Project, DP 5902; and that the General Manager-Chief Engineer be authorized to execute an agreement with Brown and Caldwell with a cost ceiling of $168,200 to provide design and engineering services for the trunk sewer portion of the Dougherty Tunnel and Trunk Sewer Project, DP 5902. There being np objection, the motion was unanimously approved. At this time, President Nejedly reverted to the order of the agenda. a. 05 6. REPORTS GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, introduced Ms. Elaine Jacobs, Household Hazardous Waste Supervisor, who stated that business is good at the Household Hazardous Waste (HHW) Collection Facility. There is still a strorg demand for these services. People are very pleased and a lot of positive feedback has been received. There is no indication of a decline in business. A presentation was made to the County Hazardous Materials Commission last month and they were very impressed with the District's HHW Collection Facility and indicated they would like to see it as a model for West County. The HHW Collection Facility began accepting small business waste last month. There have been few appointments for small businesses so far. During the coming fiscal year it is planned to target small businesses more aggressively. There will be a mobile collection event in Lafayette on May 30, 1998. Mobile collection events were held in Danville on March 28, 1998 and in San Ramon on April 4, 1998. Participation was minimal. That information will be presented to the cities who requested these services. Ms. Jacobs reported that an incident occurred at the HHW Collection Facility on May 9, 1998. Ms. Jacobs noted that this type of incident is very rare at HHW Collection Facilities. A pint bottle of picric acid, an explosive chemical if subjected to heat or shock, was left at the HHW Collection Facility. Mr. Wilson Brooks, Household Hazardous Waste Technician, recognized it and immediately notified Ms. Jacobs and the Philips Site Manager. The Sheriff's Department was contacted." That prompted a response by the County Hazardous Mat and Bomb Squad. The HHW Collection Facility was 21 98 3) 125 evacuated. That was the appropriate and safe thing to do. It was about three hours until the material was safely detonated and the HHW Collection Facility was reopened. The Sheriff's Department contacted the person leaving the material at the HHW Collection Facility since the District records contained the name, address, and type of vehicle of the person who left the material. The material left by this individual contained a number of laboratory chemicals. The picric acid was the only explosive. The person stated that he did not know it was explosive. In response to a question from President Nejedly, Ms. Jacobs stated that the District would not incur any costs for the Bomb Squad response since the County was contacted first in accordance with the agreement that we have with the County and the County called the Bomb Squad. The Board thanked Ms. Jacobs for the update. 2) Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Curt Swanson, Principal Engineer, who provided an update on the Alhambra Way Contractual Assessment District (CAD). Mr. Swanson showed a map and described the location of the eleven homes involved in the Alhambra Way CAD. Mr. Swanson noted that this is an increase over the original five homes. Mr. Swanson stated that after the last Board action to proceed with the formation of the CAD, the homeowners hired an engineer who is now developing plans. Once the plans are approved, contractor bids will be sought and assessments will be finalized. All residents of the CAD area have requested annexation to the District. Annexation will proceed through the normal process. Mr. Swanson reviewed the schedule and next steps relative to establishment of the Alhambra Way CAD. Construction is expected to begin in August or September 1998. Mr. Swanson stated that the second aspect of this discussion relates to the differences between a CAD and a Local Improvement District (LID), and the preferred alternative for use by the Alhambra Way residents. Mr. Swanson described the significant features of a CAD and a LID. Mr. Swanson stated that this issue was raised by the residents previously but the urgent need of some of the residents to get off septic tanks made a CAD the preferred alternative initially. The residents asked whether the CAD could then be absorbed into a larger LID. Mr. Kenton L. Aim, Counsel for the District, stated that this matter was discussed previously with the Board. Local Agency Formation Commission (LAFCO) approval may be required for one district (CAD) to be absorbed into another district (LID). A bond counsel was consulted. It was the opinion of the bond counsel and of Mr. Aim's firm that this could be termed as a refinance. When a LID is formed it would refinance and assume existing debt. The Central Contra Costa Sanitary District would then take action to terminate the CAD because there would be no debt outstanding and the CAD would no longer be needed. It may be necessary to send formal notice to LAFCO by resolution that the LID will be absorbing the CAD but LAFCO does not need to take action. The problem may be getting sufficient votes to form the LID including the CAD area. That would depend on the costs. Mr. Swanson stated that staff will explore these options with the Alhambra Way residents to determine if they wish to go forward with petitions for a LID. Member Menesini stated that he has received feedback from Alhambra Way residents commending District staff, particularly Mr. Swanson. Mr. Dolan, General Manager-Chief Engineer, introduced Infrastructure Division Manager Jay S. McCoy, who stated that certain points were raised during discussion of the Alhambra Way Contractual Assessment District (CAD) 05 21 98 126 05 21 4) 5) which require additional discussion. Mr. McCoy presented and reviewed updated CAD criteria as set forth in the handout provided to the Board. Discussion followed with regard to whether the cost of the installation of the private pipe on the participant's property and the connection fees paid to the District should be included or excluded from assessments. Following discussion, it was moved by Member Menesini and seconded by Member Boneysteele, that the revised CAD criteria as presented by staff be approved. As set forth in that criteria, the cost of the pipeline will be included in assessments but the cost of the installation of the private pipe on the participant's property and the connection fees paid to the District will be excluded from assessments. The motion was approved on the following roll call vote: AYES: Members: Menesini, Boneysteele, Lucey, Nejedly NOES: Members: Hockett ABSENT: Members: None Mr. Dolan, General Manager-Chief Engineer, stated that funds have been budgeted for a summer newsletter to the District's customers. The two big news items that drove including funds in the budget for this newsletter were the need for public notification of a possible Sewer Service Charge rate increase, and publication of Household Hazardous Waste Collection Facility services. Both of these items are less driving than when the budget was compiled. Staff has discussed internally whether to proceed with the July edition of the Pipeline newsletter. Staff believes there are a number of important messages to get out to the public. The Board's input and guidance is requested. Ms. Harriette Heibel, Community Affairs Manager, reviewed ideas for the upcoming Pipeline newsletter to be published in July. The following are ideas for stories presented by Ms. Heibel and/or suggested by the Board: The fact that the District has not had a Sewer Service Charge rate increase for five years linked with the local services and improvements being provided; the South Orinda Sewer Improvements Project and the innovative measures being used to mitigate construction impacts; the Integrated Pest Management (lPM) Garden and less toxic alternatives; the Household Hazardous Waste Collection Facility Reuse Room; grease in sewer lines and tips to educate customers; the first of a series of wastewater treatment process articles; and survey results from the survey in the last Pipeline newsletter. In addition, Member Lucey requested that the full name of the District, Central Contra Costa Sanitary District, be used in the body of the newsletter as well as in the title. It was suggested that the "Follow the Flow" graphic be put on the web page. Ms. Heibel thanked the Board for their input. Mr. Dolan, General Manager-Chief Engineer, stated that earlier on the agenda the Board voted to accept work and Offers of Dedication from California Kosaido, Inc., doing business as the Canyon Lakes Country Club. Mr. Dolan introduced Mr. Curt Swanson, Principal Engineer, who reported that about a year ago a Resolution of Necessity was considered to secure easements on Canyon Lakes Country Club Fairway 14 for a pipeline to serve the Shapell Country Club at Gale Ranch development. An agreement was reached with the Canyon Lakes Country Club on construction technology and schedule, and the use of the Resolution of Necessity was not necessary. Mr. Swanson showed photographs and described the construction which occurred in October, November, and December 1997. To minimize the impact on Canyon Lakes Country Club operations, Shapell used directional drilling to install 1,500 feet of pipeline. Since the golf course was open on weekends, 98 8) 127 construction was done Monday through Thursday. Construction took six to eight weeks. By having construction vehicles off site, the back nine holes of the golf course were only shut down for three days during the entire construction period. The total construction cost was $165,000 according to Shapell. The General Manager of the Canyon Lakes Country Club was pleased with how the project went. Shapell and their contractor tried hard to limit impacts on the Canyon Lakes Country Club. 6) Mr. Curt Swanson, Principal Engineer, reported that progress is being made on the joint project with the City of Lafayette. As the Board is aware, the District took advantage of the City of Lafayette project to replace some 1 5- inch sewer line in Glenside Drive which was not planned to be done for a couple of years. The decision to proceed jointly with the City of Lafayette minimizes costs to the District and impacts on residents in the area. At the last Board Meeting, the Board approved an agreement with the City of Lafayette. The City of Lafayette opened bids for the joint project on May 14, 1998. Mr. Swanson reviewed the results of the bids. The bid will be awarded to the overall low bidder, Redgwick Construction at a total bid price of $969,737.50. Although the Redgwick Construction bid was not the low sewer replacement cost, staff would recommend that the District proceed with the Glenside Drive Sewer Replacement Project, DP 5166, at a cost of $125,459.00. Mr. Dolan, General Manager-Chief Engineer, stated that this is consistent with the action taken by the Board at the last Board Meeting. Following discussion of the costs, the Board concurred. Member Menesini suggested that this project might be an appropriate article for the upcoming Pipeline publication. 7) Mr. Dolan, General Manager-Chief Engineer, thanked the Board for taking the time to visit the South Orinda Sewer Improvements Project site and the Moraga and Orinda Crossroads Pumping Stations. Mr. Dolan updated the Board on the current status of the South Orinda Sewer Improvements Project. The microtunneling head is moving northwesterly towards the pumping station. The tunneling machine has encountered boulders along the way but moved through them. It is hoped that sometime next week the microtunneling head will reach the pumping station. A conventional tunneling machine has arrived and work on the launch pit is finished. The machine is being put in place. The arborist hired by the City of Orinda has objected to having the District contractor remove two 14-inch buckeye trees adjacent to boring pits. The City had originally approved removing the trees. The property owner had also approved removing the trees. If the City persists in its objection, it could force the boring pit into the street. Staff is trying to work out some alternative with the City. Staff will keep the Board informed. Mr. Dolan reported that the City of Orinda intends to pave Moraga Way between Casa Vieja and Vista Drive. The District has a future repair job planned for that area which it is intended to accelerate and have performed by Mt. Cascade Construction in cooperation with the City of Orinda Project since the City prohibits reopening the street for five years after paving. This would mean blocking traffic lanes at night for some of the work, and plating the area during the day but this will still disrupt traffic. Mr. Dolan, General Manager-Chief Engineer, stated that he just returned from the Association of Metropolitan Sewerage Agencies (AM SA) Legislative Meeting in Washington, D.C. Development of regulatory programs is picking up steam. Environmental Protection Agency (EPA) top priorities of global climate change and superfund have taken the spotlight off water to some degree. Although President Clinton, Vice President Gore, and AMSA are emphasizing the Administration's Clean Water Action Plan. The EPA water agenda is being driven by public attention to pollution events, especially beach closures, algae, and other microorganism growth caused by nutrients. Programs in the next decade will likely include nutrient strategy, pathogen control, and developing meaningful requirements for protecting biological 05 21 98 128 health in the environment. Another high priority of the EPA is integration of all Federal programs. Because of scrutiny forced by Chino Basin tests, the EPA will also be looking at EPA-promulgated bioassay test procedures. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) Member Menesini announced that the Environmental Alliance will be hosting a High School Junior and Senior Conference in Spring 1999. The conference will focus on problem solving ideas and techniques. 2) Member Hockett announced that she attended the East Bay Municipal Utility District 75th anniversary celebration. The event was nicely done and well attended. BREAK At 4:26 p.m., President Nejedly declared a recess, reconvening at the hour of 4:35 p.m. with all parties present as previously designated. 7. ADMINISTRATIVE a. ADOPT A RESOLUTION REQUESTING CONSOLIDATION OF THE ELECTION OF DISTRICT BOARD MEMBERS WITH THE STATEWIDE GENERAL ELECTION ON NOVEMBER 3. 1998. AND ADOPT A RESOLUTION SETTING FORTH DISTRICT REGULATIONS FOR CANDIDATE STATEMENTS Ms. Joyce E. Murphy, Secretary of the District, reviewed the current District regulations for candidate statements which require that candidates seeking election to the District Board of Directors be responsible for paying $500 towards the cost of publication of his/her respective candidate statement at the time of filing nomination papers, that the balance be paid by the District after the election costs have been determined, and that the candidate statement be limited to 400 words. Ms. Murphy recommended that the Board adopt a resolution requesting consolidation of the election of District Board Members with the Statewide General Election to be held on November 3, 1998, and that the Board adopt a resolution reaffirming or modifying the District regulations for candidate statements. Member Lucey stated that he does not favor the District paying the balance of the cost of publication of candidate statements over the initial $500 paid by the candidate. Member Lucey stated that he will be running for election in November 1998. It could be viewed that District customers were financing his campaign and he is not comfortable with that. Member Lucey stated that he understands the reasons for the District subsidizing the cost of the candidate statements, but he will vote against it. Member Boneysteele stated that he can afford to pay the full cost of publication of the candidate statement and he is willing to do so. However, the high cost of publication of the candidate statement does have the disadvantage that it tends to price candidates out of the market unless the person is in a position to obtain contributions. When this issue was discussed in 1996, it was determined by the Board that the public interest was best served by a balance between the $500 paid by the candidate with the remainder paid by the District. It was noted that the cost of publication of candidate statements is based on the number of voters in the jurisdiction of the agency. The costs of candidate statements for District 05 21 98 129 Board elections is higher than other agencies because there is a relatively higher customer base. Member Menesini spoke in favor of the District subsidy of the candidate statement from the sense that just as the District does not want to keep people with limited resources from connecting to the sanitary sewer, the same is true here. Member Menesini stated that while he understands Member Lucey's position, making the opportunity to run for election to the District Board more affordable only makes for a more healthy election. It was moved by Member Menesini and seconded by Member Hockett, that Resolution No. 98-056, requesting consolidation of election of District Board Members with the Statewide General Election to be held on November 3, 1998, be adopted; and that Resolution No. 98- o.5..Z, reaffirming regulations for candidate statements, be adopted. Motion approved on the following roll call vote: AYES: Members: Menesini, Hockett, Boneysteele NOES: Members: Lucey, Nejedly ABSENT: Members: None President Nejedly stated that this was a difficult decision and agreed that the cost of publication of the candidate statement could be prohibitive for many people who might want to run for election to the District Board. However, requiring the candidates to pay for the cost of publication should ensure that candidates are serious about the job. 8. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH WINDEMERE RANCH PARTNERS AND SHAPELL INDUSTRIES OF NORTHERN CALIFORNIA FOR REIMBURSEMENT OF PLANNING. DESIGN. CONSTRUCTION. AND PROPERTY RIGHTS ACQUISITION COSTS FOR THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 b. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH WOODWARD-CLYDE CONSULTANTS TO PROVIDE PRELIMINARY AND FINAL DESIGN SERVICES FOR THE TUNNEL PORTION OF THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 c. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH BROWN AND CALDWELL TO PROVIDE PRELIMINARY AND FINAL DESIGN SERVICES FOR THE TRUNK SEWER PORTION OF THE DOUGHERTY TUNNEL AND TRUNK SEWER PROJECT. DP 5902 Engineering Items 8.a., 8.b., and 8.c. were taken out of order earlier in the agenda. d. ADOPT A RESOLUTION INFORMING RATEPAYERS REGARDING THE DISTRICT'S POSITION ON PROPOSITION 224: THE GOVERNMENT COST SAVINGS AND TAXPAYER PROTECTION AMENDMENT Member Boneysteele stated that at the April 16, 1998 Board Meeting he stated that he intended to abstain from voting on this resolution opposing Proposition 224 because of his past association with the proponent, Professional Engineers in California Government. Now, however, Member Boneysteele stated that he intends to vote no on the resolution as drafted because he considers the proposed resolution to be against the best interests of the District in that: 1) The District has been concerned with possible attempts of for- profit organizations to privatize the District's operations. The proposed resolution is inconsistent with those concerns in that the resolution would align the District with consulting engineering organizations in their efforts to acquire, without competitive bidding, the engineering design functions heretofore performed by career professional State civil service employees of CalTrans and Department of Water Resources. 2) The last Whereas clause of the proposed resolution states that the resolution is intended to provide "balanced 05 21 98 130 information to inform ratepayers regarding Proposition 224." Preceding Whereas clauses are merely regurgitations of propaganda supplied to the District by the consulting engineers' lobby and evidence no consideration of the impartial analysis of the proposition as made by the States' Legislative analyst or advanced by the proponents. Member Boneysteele stated that the proposed resolution's lack of balance could cause open-minded voters to question the credibility of the District's positions on other controversial matters. Member Hockett stated that she opposes Proposition 224. She watched a debate on this matter on television and called in the following question: "Will the stock pile of projects coming from special districts be dealt with in a timely manner to fit with special districts' time schedules and budgets?" Member Hockett stated that the State proponent of Proposition 224 was not even aware that special districts would be impacted. He was under the impression that it dealt only with transportation contracts. He was advised that special districts would be impacted. Member Hockett stated that she opposes Proposition 224. Member Menesini expressed sympathy for the position of the State engineers, but stated that he believes that the backlog that would be created by the passage of Proposition 224 would be horrendous. Member Menesini stated that he would vote in favor of the resolution opposing Proposition 224. Member Lucey stated that he had requested that this item be held over to allow more time to review the arguments in favor of and against Proposition 224. Member Lucey stated that he has read all the information and still opposes Proposition 224. Member Lucey stated that the Board must focus on the impacts on the District. Passage of Proposition 224 would create a backlog of projects. President Nejedly agreed, stating that Proposition 224 would have a direct impact on special districts. President Nejedly expressed support for the proposed resolution opposing Proposition 224. It was moved by Member Lucey and seconded by Member Hockett, that Resolution No. 98-058, Resolution Informing Ratepayers regarding the District's Position on Proposition 224: The Government Cost Savings and Taxpayer Protection Amendment, be adopted. Motion approved on the following vote: AYES: Members: Lucey, Hockett, Menesini, Nejedly NOES: Members: Boneysteele ABSENT: Members: None 9. APPROVAL OF MINUTES a. MINUTES OF APRIL 16. 1998 It was moved by Member Boneysteele and seconded by Member Menesini, that the minutes of April 16, 1998, be approved as presented. There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 21. 1 998 It was moved by Member Boneysteele and seconded by President Nejedly, that the Expenditure List dated May 21, 1998, including Self-Insurance Check Nos. 101448- 101451, Running Expense Check Nos. 110329-110682, and Sewer Construction Check Nos. 19760-19796, be approved as recommended. There being no objection, the motion was unanimously approved. 05 21 98 131 11. BUDGET AND FINANCE a. RECEIVE THE 1 998-1999 OPERATIONS AND MAINTENANCE BUDGET Ms. Deborah Ratcliff, Controller, summarized the 1996-1997 actual, the 1997-1998 projected, and the 1998-1999 budgeted revenues, expenses, and reserves which show an upward trend. Revenues for 1997-1998 are projected to be $29,682,000 compared to 1998-1999 budget of $31,168,000. Expenses for 1997-1998 are projected to be $29,645,000 compared to 1998-1999 budget of $32,827,000. At June 30, 1998, reserves are anticipated to be $7.6 million compared to the 1998-1999 budgeted fund balance of $5.9 million at June 30, 1999. In February 1998, 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. Ms. Ratcliff reviewed the key labor costs imbedded in the 1 998-1999 O&M Budget. Ms. Ratcliff stated that interest expense for the Certificates of Deposit was shifted from the Sewer Construction Fund to the O&M Budget this year. Tax revenue was shifted as well to cover that increase in expense. Comparison of 1997-1998 to 1998-1999 budgeted O&M expenses shows an increase in expenses of $3,547,000 or 12.1 percent. Member Menesini stated that he was advised that the City of Concord has sent out a notice of a rate increase resulting from a District rate increase. Mr. Dolan, General Manager-Chief Engineer, stated that the increase to the City of Concord is a result of increased capital costs and Concord's share of Household Hazardous Waste Collection Facility costs, as well as O&M costs. Staff will compile those figures and report back to the Board. Member Lucey requested that a Personnel Committee meeting be scheduled next Fall to review the 15 percent increase in employee benefits reflected in the revised administrative orverhead. Ms. Ratcliff stated that the capitalized administrative overhead had not been changed for ten years or more. The 15 percent increase in employee benefits occurred over the last ten years. In response to a question from Member Hockett, Ms. Ratcliff stated that new computer hardware purchased by the District is year 2000 compliant. Older systems may cost more to bring into compliance than to replace. This issue will be a priority for the new Management Information System (MIS) Administrator who begins work on May 29, 1998. A report will be made to the Board later this summer. President Nejedly noted that it was 6:00 p.m. and requested that the meeting be extended to 6:30 p.m. Members Boneysteele, Menesini, and Nejedly voted yes to extend the meeting. Members Lucey and Hockett voted no. Director of Administration Paul Morsen, Director of Engineering Charles W. Batts, Director of Collection System Operations John A. Larson, and Director of Plant Operations James M. Kelly reviewed their respective departmental budgets. President Nejedly thanked staff for their presentations and noted that approval of the O&M Budget will be calendared for consideration at the June 9, 1998 Board Meeting. b. 1997-1998 CAPITAL IMPROVEMENT BUDGET THIRD QUARTER STATUS REPORT Mr. Jarred Miyamoto-Mills, Principal Engineer, presented the 1997-1998 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 Recycled Water Programs and the Collection System Program, and noted that at CIB expenditures at year end are projected to be $1.1 million under bud'get. Mr. Miyamoto-Mills stated that the differences between the 1997-1998 Capital Improvement Budget (CIB) estimate and the current year-end projection for individual projects are generally due to expenditures being shifted from one fiscal year to the next. Changes in the total project budgets are not anticipated. The principal component of debt retirement for the current year is $790,000 and the interest component is $1.4 million. The interest will be paid from the O&M Budget 05 21 98 132 next year. Principal will continue to be paid from the Capital Improvement Budget. Mr. Miyamoto-Mills reviewed CIB revenues and noted that at year-end CIS revenues are projected to be $20.6 million or $1.9 million less than budget. The Sewer Construction Fund balance at July 1, 1997, was $54 million, plus projected revenues of $20.6 million, less projected expenditures of $28.2 million and less debt retirement of $2.2 million, for a projected balance at June 30, 1989 of $44.1 million, $10,000 less than the CIB estimate. President Nejedly declared that the 1997-1998 Capital Improvement Budget Third Quarter Status Report was duly received. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly requested an update on any enforcement actions relating to recent problems and spills. Member Lucey requested monthly updates on the South Orinda Sewer Improvements Project. 14. CLOSED SESSION a. EXISTING LITIGATION The closed session to discuss existing litigation, 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 continued to June 9, 1998. 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. Mr. Kenton L. Aim, Counsel for the District, stated that the existing facts and circumstances relating to this matter include a series of confrontations with Mr. Richard Lande in Orinda arising out of the South Orinda Sewer Improvements Project. Mr. Lande has hired an attorney. The District has received letters and had conversations with that attorney. They have indicated they will be settling up after the project is completed. There have been contacts with District staff and last week there was an incident where the police were involved. These facts and circumstances are known to the potential plaintiff. At 6:18 p.m., President Nejedly declared the closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b). At 6:53 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. 1 5. REPORT OF DISCUSSIONS IN CLOSED SESSION Mr. Kenton L. Aim, Counsel for the District, stated that no decisions were made or votes taken in closed session which require reporting at this time. 05 21 98 133 16. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 6:54 p.m. to reconvene at 8:30 a.m. on Friday, May 29, 1998, at the Concord Hilton, 1970 Diamond Boulevard, Concord, California, for a Special Board Meeting/Strategic Planning Workshop; to reconvene at 3:00 p.m. on Monday, June 8, 1998, in the Third Floor Executive Conference Room, 5019 Imhoff Place, Martinez, California, for a Board Workshop to discuss the process for filling the General Manager- Chief Engineer position upon the retirement of Mr. Roger J. Dolan; and to reconvene at 2:00 p.m. on Tuesday, June 9, 1998, for an Adjourned Regular Board Meeting. Pre' ent of the Board of irectors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 4 ct (ß. Se r ta of the Central C tra Costa Sa \ . ary District, County of Contra Costa, State of California 05 21 98