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HomeMy WebLinkAboutBOARD MINUTES 03-16-95 45 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 16, 1995 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 3:00 p.m. on March 16, 1995. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Rainey, Boneysteele, Hockett ABSENT: Members: Dalton Member Dalton entered the meeting at the hour of 3:06 p.m. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Boneysteele and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. and b., be approved as recommended. a. Authorization was given for P.A. 95-5 (Alamo) to be included in a future formal annexation to the District. Motion approved on the following vote: AYES: Members: Boneysteele, Menesini, Rainey, Hockett NOES: Members: None ABSENT: Members: Dalton b. The contract work for the Cathodic Protection Improvement Project, DP 6103, was accepted and filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Boneysteele, Menesini, Rainey, Hockett NOES: Members: None ABSENT: Members: Dalton 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONTRACT TO ELLIS ROOFING COMPANY FOR THE TREATMENT PLANT ROOF REPLACEMENT - PHASE I. DP 6098 Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that patching of the old Treatment Plant roof is no longer sufficient and replacement is now recommended. 03 16 95 46 Member Dalton entered the meeting at the hour of 3:06 p.m. Following discussion, it was moved by Member Boneysteele and seconded by Member Rainey, that award of contract be authorized to Ellis Roofing Company, the lowest responsible bidder, for $130,146 for the Treatment Plant Roof Replacement Project - Phase I, DP 6098. There being no objection, the motion was unanimously approved. a. 6. ENGINEERING ADOPT A RESOLUTION APPROVING AS PREOUALIFIED MICROTUNNELING/PIPE JACKING CONTRACTORS FOR THE PLEASANT HILL RELIEF INTERCEPTOR PROJECT. PHASE 3. DP 5031 Following explanation by Mr. Dolan, General Manager-Chief Engineer, and discussion of the microtunneling!pipe jacking technology to be used on this project, it was moved by Member Rainey and seconded by Member Menesini, that Resolution No. 95-012 be adopted, approving as prequalified the microtunneling/pipe jacking contractors listed in Position Paper Exhibits C and D for the Pleasant Hill Relief Interceptor Project, Phase 3, DP 5031. There being no objection, the motion was unanimously approved. b. ADOPT A RESOLUTION APPROVING DIRECTIONAL DRILLING DEMONSTRATION PROJECT AND AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE A CONTRACT WITH UNDERGROUND CONSTRUCTION COMPANY, INC. FOR THE KNOX DRIVE SEWER REPLACEMENT PROJECT. DP 4602 Mr. Dolan, General Manager-Chief Engineer, stated that a different trenchless technology is proposed for the Knox Drive Sewer Replacement Project to address a different situation than will be encountered in Phase 3 of the Pleasant Hill Relief Interceptor Project. In developing alternatives for the Knox Drive Project which is complicated by slope stability concerns and construction access limitations, it was determined that a trenchless technology known as directional drilling would be the most cost effective alternative and that a field test would be appropriate to determine the suitability of this technology for future District use. Discussion followed in which Mr. Curtis W. Swanson, Principal Engineer, described the directional drilling technology and explained the justification for a sole source contract. Following discussion, it was moved by Member Rainey and seconded by Member Boneysteele, that Resolution No. 95-013, be adopted finding that pursuant to Public Contracts Code Section 3400 (b) entering into a contract for use of Underground Construction Company, Inc.'s directional drilling technology is required in order that the District may perform a field test or experiment to determine the suitability of the technology for future District use, and determining that the public interest in utilizing the most cost effective and practical alternative requires utilizing the unique technology of Underground Construction Company, Inc. as a sole source supplier; and that the General Manager-Chief Engineer be authorized to execute a contract with Underground Construction Company, Inc. in the amount of $ 70, 700 for construction of the Knox Drive Sewer Replacement Project, DP 4602. There being no objection, the motion was unanimously approved. 7. PERSONNEL a. AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO ENTER INTO AN AGREEMENT WITH JERRY LEW & ASSOCIATES FOR $33.500 TO PROVIDE CULTURAL DIVERSITY TRAINING Mr. Dolan, General Manager-Chief Engineer, stated that the District has learned through the years that some training activities must be continually renewed. Cultural diversity is one such training. It is recommended that Jerry Lew & Associates be retained to provide this training. A pilot event has been conducted by Mr. Lew for the managers and a number of employees. The pilot event was very successful. Following discussion, it was moved by Member Rainey and seconded by Member Dalton, that the General Manager-Chief Engineer be authorized to enter into an agreement with 03 16 95 47 Jerry Lew & Associates in the amount of $33,500 for the purpose of Cultural Diversity Training. There being no objection, the motion was unanimously approved. 8. APPROVAL OF MINUTES MINUTES OF FEBRUARY 16. 1995 a. It was moved by Member Boneysteele and seconded by Member Dalton, that the minutes of February 16, 1995, be approved as presented. There being no objection, the motion was approved with Member Menesini abstaining because he was not present at the meeting of February 16, 1995. 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MARCH 16. 1995 Member Boneysteele, member of the Budget and Finance Committee, stated that he and Member Menesini reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated March 16, 1995, including Self-Insurance Check Nos. 100933- 100942, Running Expense Check Nos. 87941-88273, Sewer Construction Check Nos. 15378-15434, and Payroll Check Nos. 37720-38001, be approved as recommended. There being no objection, the motion was unanimously approved. 10. BUDGET AND FINANCE a. RECEIVE FEBRUARY 1995 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance expenditures forthe month of February 1995, noting that expenditures were $37,000 less than budget, representing a 1.6 percent favorable variance. For the eight months ended February 1995, expenditures were $1.2 million less than budget, representing a 6.9 percent favorable variance. Operations and maintenance revenues for the eight months ended February 1995 were $15,170,000 or 0.6 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 3.7 percent to 6.8 percent. The latest interest rate as of February 1995 was 5.9 percent. The average yield for the LAIF account through January 1995 was 5.6 percent. Member Boneysteele noted a Treasury note 6.9 percent yield and questioned whether it was purchased at a premium. Ms. Ratcliff stated that she would investigate the matter and report back to the Budget and Finance Committee at the next meeting. Ms. Ratcliff reported that on March 14, 1995, the Contra Costa County Board of Supervisors conducted a workshop on the County Investment Policy and the performance of the County investment pool. Mr. Alfred Lomeli, County Treasurer, assisted by his staff, made the presentation, noting the priorities of the County Treasury Cash Management Policy as follows: . Legality, conformance to Section 53600 of the California Government Code; . Safety of principal; . Liquidity; and . Yield, maximize yield consistent with the first three priorities. Ms. Ratcliff stated that as a result of the Orange County bankruptcy, the major rating agencies performed an assessment of county investment pools specifically looking at leveraging, derivatives and outside investors. Based on that review, some counties were found to have risky investment practices and are on credit watch. Contra Costa County 03 16 95 48 was rated very good, with the highest short-term credit rating given by Moody's and Standard & Poors, and a very good long-term credit rating as well. Ms. Ratcliff reviewed the composition of the Contra Costa County portfolio noting that 13.34 percent of Contra Costa County's investments are held in structured notes, or derivatives. Ms. Ratcliff showed a comparison of the Contra Costa County market/value ratio compared to other counties, noting that the 77.35 percent ratio is good and enhances the County's ability to meet needs. Because of the Orange County problems, Contra Costa County Treasurer Alfred Lomeli has initiated the following strategies and recommendations as of December 1994: 1 ) No reverse repurchase agreements will be used. 2) Securities purchased through brokers will be held in safekeeping at Bank of America Services Clearances Offices or as designated for securities. 3) There will be no purchases of derivatives, floating rate notes, or collateralized mortgage obligations. 4) Maximum maturity of newly acquired investments will be no greater than two (2) years, unless directed by the governing authority of the District. 5) All other elements of the current investment policy remain in effect. The County Treasurer has further recommended that an Investment Oversight Committee (lOC) be formed to review the County's investment policy, and to regularly monitor the County investment pool's performance and report the same to the Board of Supervisors. It is proposed that the IOC be composed of: . . . . . . County Treasurer County Administrator County Auditor-Controller County Counsel Board of Supervisors appointed Certified Financial Planner Two representatives from agencies that invest in the pool Ms. Ratcliff distributed copies of the Contra Costa County Treasurer-Tax Collector's Investment Report including past investment policies and practices of the County, the current investment portfolio of the County, and revised interim investment strategies and policies. Discussion followed with regard to appointments to the lOCo The Board of Supervisors has not yet made appointments to the lOCo Staff will provide an update when the appointments are made. Mr. Jay S. McCoy, Infrastructure Division Manager, provided an update on current capital improvement projects, reporting the status of the Crestview Sewer Improvements Project, the Pleasant Hill Relief Interceptor Phase 3 Project, the 1994-1995 Sewer Renovation Project, the Lakewood Sewer Renovations Project, and the Orinda-Moraga Pumping Stations Upgrade Project. Mr. William E. Brennan, Plant Engineering Division Manager, reported the status of the Secondary Clarifier Project, the Ultraviolet (UV) Disinfection Project, the Martinez Pumping Station Project, the Headworks Facilities Improvements Project, and the Outfall Improvements Project. President Hockett thanked Ms. Ratcliff and Messrs. McCoy and Brennan for their reports and declared that the February 1995 Financial Statements were duly received. None 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 1 2. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 03 16 95 49 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that in 1986 Central San held a 40th Anniversary event which was an important symbolic milestone in the District's history. That was the year of the settlement of all claims and grant issues which had arisen from the Treatment Plant projects of the 1970's. Now, ten years later, the District has grown and matured. The message of pollution prevention is precipitating communication with the community in many new ways. Staff is deeply engaged in enhancing internal management skills. Process refinements at the Plant are making the District safer, lowering costs and increasing reliability. The District's engineering capability has never been greater. Collection System Operations is improving productivity and adapting new technologies while accommodating and appreciating our growing diversity. The Administrative Department is working behind the scenes to make all these changes possible. If the Board agrees, staff would like to help plan and budget for a celebration in the summer of 1996. Staff would propose that two Board Members be appointed to a committee to work with staff on this effort. The Board concurred. President Hockett will appoint a committee. 2) Mr. Dolan, General Manager-Chief Engineer, stated that driven by the need to protect our system from pollutants and to get out the message on pollution prevention, the District has undertaken a number of activities including the cooperative program with the Lindsay Museum that is reaching a portion of the general public and will soon reach grade school children throughout Central County, and the Walnut Creek Intermediate School Program that is getting the District's message across to students in what has come to be a very popular program. Work is progressing on the newspaper advertising and movie theater display "Don't Dump down the Drain" campaign. Member Menesini has pointed out that the current program has one very important gap and that is high school students. The preferred approach is to work through the 10th grade Biology teachers to develop teaching materials which will fit into the ecology portion of the curriculum. To this end, Member Menesini will meet with high school principals to introduce the concept and get buy-in. Staff will send a letter to principals asking for representatives to attend a Central San event featuring a plant tour, round table discussion of the message we wish to communicate, and solicitation of ideas as to how best to proceed, followed by dinner at a restaurant near the Plant. If this initial event is successful, a focus group could be developed to work with staff in putting together the program. The program would be developed in fiscal year 1995-1996 and implemented the following year. If the Board has no objection, funds will be budgeted for this activity. The Board concurred. 3) Mr. Dolan, General Manager-Chief Engineer, stated that about eighteen months ago the District began the Work Redesign effort in earnest. In October 1993 a selection process was completed and Lamb & Lamb were selected as consultants to implement the program at the District. As the Board may recall, the motivation to do this was very serious concerns about cost impacts and declining revenues. In that process Plant Maintenance Division Manager John Pearl pointed out that American industry has found that a great untapped resource is the knowledge and expertise of our own employees. Mr. Dolan reviewed the principles of Work Redesign, emphasizing the three bottom lines of customer satisfaction, cost effectiveness, and employee satisfaction and commitment. Mr. Dolan introduced Mr. John Pearl, who has managed and coordinated the Work Redesign Program at the District. Mr. Pearl reviewed current and recently completed Work Redesign activities and discussed the role of the consultants in those efforts. Work Redesign activities are divided into three phases. The startup and implementation phase began in October 1993 and continued through 1994. 1995 will be a transition period, followed by a steady state. The consultants were used heavily during the startup and implementation phase. During the transition period, the District will utilize the internal resources trained by the Lambs. Eventually the District will o~ 16 95 50 reach a point where the District's internal resources will be used almost exclusively. Mr. Pearl stated that three of the facilitators trained by the Lambs are present today. Mr. Pearl introduced Ms. Jackie Zayac, Planning Assistant, who provided background on the selection and training of facilitators. Ms. Jonalea Ostlund, Chemist II, reported on the process and tools employed by the facilitators in the Work Redesign process and in facilitating problem resolution on the job in other areas. Mr. Tim Potter, Supervising Source Control Inspector, discussed his experiences in facilitating team efforts at the District. Member Dalton left the meeting at the hour of 4:50 p.m. b. c. 03 4) 5) 6) 7) Mr. Dolan stated that the District is now moving into the transition phase of the Work Redesign Program. At that next Board Meeting, the Board will be asked to approve funding in the amount of $85,000 for this transition phase which will proceed during the 1995 calendar year. Discussion followed with regard to the consultants' level of effort during the steady state phase. The Board expressed support and enthusiasm for the Work Redesign Program and the results achieved to date, but expressed caution about the continued use of consultants for this effort after the completion of the transition phase. Mr. Dolan stated that the costs and benefits will be weighed carefully. It is expected that Lamb & Lamb or other consultants may be used as resources from time to time, but it is anticipated that the District will be essentially autonomous by the end of 1995. Any use of consultants along those lines would be presented to the Board for approval. Mr. Dolan, General Manager-Chief Engineer, announced that Contra Costa Water District (CCWD) has requested assistance with their alum sludge disposal needs. District staff believes t~at it is time for a cooperative approach with CCWD. The District's technical staff is working with CCWD staff to determine if a mutually beneficial project can be defined. Staff will keep the Board apprised. Mr. Dolan announced that the Contra Costa Times has been interviewing District staff on our Pollution Prevention Program. The kick off of the District's "Don't Dump down the Drain" campaign is April 2, 1995 and there may be a feature article around that time. Mr. Dolan announced that Shappell is continuing to promote the idea that the annual operating expense for the West Branch Pumping Station in the Dougherty Valley should be transferred to a charge per parcel and collected by the District on the tax bill. Shappell will be holding a community meeting soon to discuss this idea with residents. There does not seem to be local opposition at this time. If there is no objection, the Board may be asked to consider making such an assessment during the annual rate-setting process. Mr. Dolan announced that the District is currently advertising for Phase 3 of the Pleasant Hill Relief Interceptor Project. The engineer's estimate for this work is $5.4 million. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT None 16 95 51 d. BOARD MEMBERS 1 ) Member Rainey reported that the Central Contra Costa Solid Waste Authority will meet on March 23, 1995. Six proposal were received in response to the Request for Proposals for Solid Waste Collection, Recycling and Green Waste Services. 2) Member Rainey reported that the Local Agency Formation Commission (LAFCO) adopted the rules and regulations submitted by special districts with a minor change which favored the special districts. 3) Member Menesini reported that the Friends of the Estuary Education Committee met recently. There appear to be opportunities for cooperation between local special districts and the Friends of the Estuary that would be mutually beneficial and would get the pollution prevention message out to the public. 13. ANNOUNCEMENTS None 14. 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 Acme Landfill Corp. v. Althin CD Medical, Inc., CCCSD, et ai, U.S. District Court No. C91-4268 SBA. At 5:35 p.m., President Hockett declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a). At 6: 17 p.m., President Hockett concluded the closed session and reconvened the meeting into open session. 15. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION None 16. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at the hour of 6: 17 p.m. cfi). ,~tÞ~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 'l' U t, /Î [, d,. Sej:;rejar of the Central Co tra Cd~)á Sanitary District, County 0 Contra Costa, State of California 0:1 16 95