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HomeMy WebLinkAboutBOARD MINUTES 09-04-97 209 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 4, 1997 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 1 :30 p.m. on September 4, 1997. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Lucey, Nejedly, Hockett, Boneysteele, Menesini ABSENT: Members: None 2. PUBLIC COMMENTS None 3. CLOSED SESSION INITIATION OF LITIGATION a. Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District has decided to initiate or is deciding whether to initiate litigation. The subject of the potential litigation is adoption of a Resolution of Necessity for the purpose of initiating eminent domain proceedings for acquisition of public sewer and recycled water line easements for the Pleasant Hill Relief Interceptor Project, Phase 4, DP 4985. At 1 :33 p.m., President Menesini declared the closed session to discuss initiation of litigation as noted above. At 2:05 p.m., President Menesini concluded the closed session and reconvened in the meeting in open session. 4. REPORT OF DISCUSSIONS IN CLOSED SESSION Mr. Kenton L. Aim, Counsel for the District, reported that no actions were taken which require reporting at this time. 5. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Boneysteele, that the Consent Calendar, consisting of Items a. through j., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 97-142 accepting an easement at no cost to the District from Theodore A. Siaman, et ux, on Mira Loma in Orinda, Job 4980, Parcel 1, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini None None b. Resolution No. 97-143 accepting work and Offers of Dedication from Trident Associates and St. Thomas Construction Company, Job 5132, Parcels 1 and 2, Blackwood Drive and Mt. View Boulevard, Walnut Creek area, was adopted and recording was authorized. 09 04 97 210 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini None None Resolution No. 97-144 accepting work and Offers of Dedication from Davidon Homes, Job 5140, Parcel 1, northeast corner Grayson Road and Reliez Valley Road, Pleasant Hill area, was adopted and recording was authorized. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. Hockett, Boneysteele, Lucey, Nejedly, Menesini None None Resolution No. 97-145 accepting work and Offers of Dedication from Davidon Homes, Job 5140, Parcel 2, northeast corner Grayson Road and Reliez Valley Road, Pleasant Hill area, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini NOES: Members: None ABSENT: Members: None e. Resolution No. 97-146 accepting work and Offers of Dedication from Union Land, Inc., Job 5110, Parcel 1, Rudgear Road, Walnut Creek area, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini NOES: Members: None ABSENT: Members: None f. Authorization was given for P.A. 97-7 (Danville) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: g. Hockett, Boneysteele, Lucey, Nejedly, Menesini None None October 2, 1997 at 2:00 p.m., was established as the date and time for a public hearing on District Annexation 136, Parcels 5, 7, 8, and 9, as amended by the Local Agency Formation Commission (LAFCO). Motion unanimously approv-ed on the following vote: 09 04 97 211 AYES: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini NOES: Members: None ABSENT: Members: None Resolution No. 97-147 was adopted, establishing the Sewer Construction Fund appropriations limit in the amount of $31,724,762 for the 1997-1998 fiscal year, in accordance with Article XIII B of the California Constitution; and selecting the change in the local assessment roll due to local nonresidential construction for use in computing the appropriations limit. h. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini None None The attendance of Associate Engineer Randy Schmidt was authorized at the Environmental Protection Agency (EPA) Stakeholder meetings in Durham, North Carolina on September 16, 1997, and quarterly through June 30, 1998, at a cost of approximately $1,000 per meting. i. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini None None The attendance of Human Resources Manager Cathryn Freitas was authorized at the International Quality and Productivity Center Conference on Team-Based Compensation: Measurements, Rewards, and Incentives in Chicago, Illinois from September 22-24, 1997. J. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Lucey, Nejedly, Menesini None None 6. HEARINGS HOLD A HEARING AND ADOPT A RESOLUTION OF NECESSITY FOR THE PURPOSE OF INITIATING EMINENT DOMAIN PROCEEDINGS FOR ACQUISITION OF PUBLIC SEWER AND RECYCLED WATER LINE EASEMENTS FOR THE PLEASANT HILL RELIEF INTERCEPTOR PROJECT. PHASE 4. DP 4985 a. Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the purpose of this hearing is to receive comments regarding adoption of a Resolution of Necessity to acquire permanent and temporary easements for sewer and recycled water lines by eminent domain for the Pleasant Hill Relief Interceptor (PHRI) Project. Mr. Dolan introduced Mr. Tad Pilecki, Senior Engineer, who stated that on August 15, 1997 the property owner in question, Mrs. Maryellen Smith, was sent notification, by both regular and certified mail, of this hearing and the fact that she could be present to provide input into the Board's deliberation process. Mr. Pilecki reviewed the key issues relating to the proposed adoption of a Resolution of Necessity to acquire permanent and temporary easements by eminent domain for the PHRI Project, Phase 4, as follows: 09 04 97 212 . The public interest and necessity require the project for which said public sewer and recycled water line easements are to be acquired; . The proposed project is planned or located in the manner which will be most compatible with the greatest public good and the least private injury; . Said public sewer and recycled water line easements are necessary for the proposed project; and . The offer pursuant to Government Code Section 7267.2 has been made to the owner of the subject property. Mr. Pilecki stated that in 1982, 1986 and 1997, the collection system serving the Pleasant Hill community experienced significant wet weather related sewer overflows. The purpose of the PHRI is to reduce the potential for these overflows. In recent history, there have been seven years of drought, underscoring the necessity of installing the recycled water pipeline. Mr. Pilecki stated that the public interest and necessity require the project for which said public sewer and recycled water line easements are to be acquired. Mr. Pilecki stated that in 1990-1991 an Environmental Impact Report (EIR) conducted analysis of alternative routes for the project. Four viable alternatives were considered. Montgomery Watson Consulting Engineers conducted further study and narrowed the four alternatives down to two. On September 4, 1991, the Board of Directors received a presentation on alternatives and the criteria considered including limited traffic impacts, less commercial disruption, lower construction costs, elimination of syphons, preference by public and other agencies. About two dozen meetings were held with the public and public agencies relative to all options and at which their preferences were expressed. In February 1993, staff again went back on its own and reviewed whether there was another way to do the project but avoid this particular area. Staff found again that this is the best route when taking into account impacts on residents (50 percent fewer residents would be impacted), hydraulics, and traffic impacts. Mr. Pilecki stated that based on these facts, the proposed project is planned or located in the manner which will be most compatible with the greatest public good and the least private injury, and that said public sewer and recycled water line easements are necessary for the proposed project. Mr. Pilecki stated that an offer pursuant to Government Code Section 7267.2 was made to the property owner in question, Mrs. Maryellen Smith, on September 11, 1996. The District feels the offer was fair and just compensation based on an appraisal prepared by a licensed real estate appraiser. The property owner indicated that the offer did not meet her expectations and agreement has not been reached with the property owner. Staff will continue to try to meet with the property owner, but to date the property owner has been unwilling to meet with staff. Mr. Pilecki requested that the Board proceed with adoption of a Resolution of Necessity to obtain the needed property rights to provide for a timely start of construction of the project. Discussion followed with regard to the proposed use of the easements on the property in question, the attempts made to contact and negotiate with the property owner, and proposed mitigation and compensation offered to the property owner. At 2:23 p.m., President Menesini opened the hearing to receive comments regarding adoption of a Resolution of Necessity to acquire permanent and temporary easements for sewer and recycled water lines by eminent domain for the Pleasant Hill Relief Interceptor Project. There being no comments, President Menesini closed the hearing. It was moved by Member Lucey and seconded by Member Hockett, that the Board finds that the public interest and necessity require this project, that the project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury, that the property rights sought to be acquired are necessary for the project, and that the offer pursuant to Government Code Section 7267.2 was made to the owners of record of the subject property; that Resolution No. 97-148, a Resolution of Necessity to acquire permanent and temporary easements by eminent domain for the Pleasant Hill Relief Interceptor, Phase 4, DP 4985, be adopted; and that authorization be 09 04 97 213 given for the filing of the eminent domain action, the deposit of the amount of probable compensation, and the application for Order For Immediate Possession. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Nejedly, Boneysteele, Menesini None None b. CONDUCT A PUBLIC HEARING: CONSIDER APPROVING THE "SPECIFIC FACILITIES PLAN FOR WASTEWATER UTILlTY'SERVICE TO DOUGHERTY VALLEY AND TRIBUTARY PROPERTIES" AND A GRAVITY TUNNEL/TRUNK SEWER PROJECT President Menesini stated that the purpose of this public hearing is to receive public comments concerning approval of the "Specific Facilities Plan for Wastewater Utility Service to Dougherty Valley and Tributary Properties" and a gravity tunnelltrunk sewer project. Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who stated that the "Specific Facilities Plan for Wastewater Utility Service to Dougherty Valley and Tributary Properties" (the Plan) was circulated to the Board and interested members of the public on August 7, 1997. Mr. Miyamoto-Mills reviewed the chronology of events in the Dougherty Valley leading to this public hearing to consider approval of the Plan and a gravity tunnelltrunk sewer project, beginning with approval of the San Ramon Valley Trunk Sewer Environmental Impact Report (EIR) and project in 1986, and culminating with the annexation of the Windemere property to the District and addition of the Gale Ranch property to the District's sphere of influence in 1997. The area in the Dougherty Valley and tributary properties that is proposed to receive wastewater service is all of Gale Ranch (Shape ), Gumpert Ranch (Windemere), and West Branch (Shape ), and portions of the LawrencelLeema Road Specific Plan Area, Tassajara Meadows (Kaufman & Broad), Wendt Ranch (Shapell), and Tassajara Property Owners Association. Mr. Miyamoto-Mills showed the locations of these areas on a map and the location of the proposed tunnel and trunk project. Mr. Miyamoto-Mills stated that wastewater utility service planning has been going on since 1986 when the San Ramon Valley Trunk Sewer Project and EIR were approved. Since that time other studies have been done to determine the technical and financial feasibility of many wastewater facility options for serving the Dougherty Valley and tributary properties. In the G.S. Dodson & Associates study done in November 1995, nine pumping station and gravity tunnel alternatives were evaluated and compared on a life- cycle cost basis. A gravity tunnel was the preferred alternative. Mr. Miyamoto-Mills stated that the lowest cost pumping station alternative was estimated to be $5.6 million more than the preferred alternative. The Geotechnical Feasibility and Predesign Reports prepared by Woodward-Clyde Consultants in 1996 and 1 997, found that the tunnel is technically feasibility. Two tunnel configuration options were evaluated: 1) An option with walkway access for inspection and maintenance at an estimated cost of $14.4 million; and 2) An option for a grouted-in-place pipeline at an estimated cost of $11.2 million. Mr. Miyamoto-Mills stated that the second option is estimated to be $4.4 million less than the lowest cost pumping station alternative. Mr. Miyamoto-Mills reviewed the proposed alignment and configuration options. Discussion followed with regard to the seismicity of this area and repairing the grouted-in- place pipeline should it be necessary, the safety of the tunnel itself, and use of the additional space in the tunnel for a recycled water pipeline or other utilities. Mr. Miyamoto-Mills reviewed the financing for Dougherty Valley facilities. On-site facilities will be designed, built, and contributed by the developers in accordance with current District practice. Off-site facilities to reach the District's existing system (Dougherty Tunnel and trunk sewers) will be designed and built by the District and financed by developers with no financial risk to current District customers. This requires a signed agreement between the District and developers prior to bidding the District project. Off-site facilities improvements needed at the Larwin Pumping Station and in 09 04 97 214 downstream force mains, gravity sewers, and at the Treatment Plant will be paid for with Capital Improvement Fees in accordance with the District's existing approach for these types of facilities. Mr. Miyamoto-Mills noted that there may be an additional fee to fund the tunnel and trunk sewers for developers who do not fund the tunnel and trunk sewer up front. Mr. Miyamoto-Mills presented the staff recommendation that the Board: . Conduct the public hearing to receive comments on the Specific Facilities Plan; . Review the Plan's recommendations and make appropriate findings to comply with the California Environmental Quality Act (CEQA), based on Contra Costa County's 1996 EIR for Windemere Phase 1 and Gale Ranch Phase 2 considered and approved by the District Board in June 1997; . Consider and approve the Plan; and . Select and approve the tunnel alternative for provision of wastewater utility service to Dougherty Valley and tributary properties. Mr. Miyamoto-Mills stated that it is appropriate for the Board to take this action for the following reasons: . It is the District's responsibility to determine the route, schedule, and financing arrangements for sewer system extensions. . It is District policy and past practice to approve gravity service over pumping where feasible. . Requiring developers to pay for sewer system infrastructure up front avoids burdening homeowners with long-term assessments for capital or O&M costs. . Selecting among project alternatives based on present-worth, life-cycle cost assures the lowest cost of service for the customer. Mr. Russell Leavitt, Management Analyst, reviewed the written comments received from Mr. Daniel M. Coleman, Windemere Ranch Partners, dated August 26, 1997, and Mr. John Harper, Senior Civil Engineer, City of San Ramon, dated August 26, 1997, and the staff responses to those comments. By reference hereto, both the comment letters and the staff responses were made a part of the record. At 2:57 p.m., President Menesini opened the public hearing to receive public comments concerning adoption of the "Specific Facilities Plan for Wastewater Utility Service to Dougherty Valley and Tributary Properties" and a gravity tunnelltrunk sewer project. Mr. Thomas Koch, Project Manager for Dougherty Valley for Shapellindustries of Northern California, stated that it has been a great pleasure to work with District staff, particularly Messrs. Miyamoto-Mills and Leavitt. Mr. Koch stated that in terms of the issues before the Board today, while Shapell's original estimate of the difference in cost between the lift station and tunnel options was greater, Shapell will defer to the engineering work done by the District. Shapell favors option 2, the grouted-in-place pipeline tunnel option because it is substantially less expensive and there is little loss in future usability. Mr. Koch stated that there is an area near the County Club at Gale Ranch not currently in the District, where two school sites are planned. Mr. Koch stated that this issue is not on the Board's agenda but he wished to advise the Board that Shapell will be making a proposal to the Local Agency Formation Commission (LAFCO) to annex these two properties to East Bay Municipal Utility District and Central Contra Costa Sanitary District through a boundary reorganization. Shapell believes that the school areas may gravity to the Canyon Lakes pipeline currently being constructed rather than to the tunnel. 09 04 97 215 Mr. Koch stated that it would be Shapell's hope that time will be given to allow Shapell to work out whatever internal financing arrangements are necessary to front the costs for this infrastructure. Mr. Miyamoto-Mills stated that it may be possible to serve the school area by gravity outside the tunnel area. Final design of sewers for the Lawrence Road, Wendt Ranch, and Tassajara Valley Property Owners Association areas may also change. There being no further comments, President Menesini closed the public hearing at the hour of 3:03 p.m. It was moved by Member Hockett and seconded by Member Lucey, that Resolution No. 97-149 be adopted, approving the "Specific Facilities Plan for Wastewater Utility Service to Dougherty Valley and Tributary Properties" and a gravity tunnel/trunk sewer project. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None c. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON PROPOSED ADDITION TO THE DISTRICT CODE. TITLE 11. RECYCLED WATER Mr. Dolan, General Manager-Chief Engineer, stated that the purpose of this public hearing is to receive public comments concerning the proposed adoption of an ordinance adding Title 11, Recycled Water, to the District Code. Mr. Dolan stated that a complete presentation was made at the August 7, 1997 Board Meeting to familiarize the Board with the proposed Recycled Water ordinance and an overview of the District's practices regarding ordinances and codes was provided as well. Staff is prepared in the event there are interested persons in the audience or if the Board has any questions. Discussion followed with regard to the customers' responsibility under the regulatory requirements and the relation of District recycled water rates to East Bay Municipal Utility District rate setting. At 3: 12 p.m., President Menesini opened the public hearing to receive public comments concerning adoption of the proposed ordinance adding Title 11, Recycled Water, to the District Code. There being no comments, President Menesini closed the public hearing. It was moved by Member Boneysteele and seconded by Member Nejedly, that Ordinance No. 202 be adopted, adding Title 11, Recycled Water, to the District Code. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Nejedly, Lucey, Hockett, Menesini None None It was noted that there will be a public hearing on the Lamorinda Recycled Water Project Draft Environmental Impact Report on September 15, 1997 from 7:00 p.m. to 9:00 p.m. at St. Mary's College in Moraga. 7. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 09 04 97 .--------..----..-.....- 216 8. BIDS AND AWARDS AUTHORIZE AWARD OF CONTRACT FOR SECURITY ACCESS AND VIDEO SYSTEMS (DP 8172) TO NORTHLAND CONTROL SYSTEMS a. Mr. Dolan, General Manager-Chief Engineer, stated that this item was brought before the Board when a security analyst addressed security issues raised by District staff. Under State law this work must be bid. Only one bid was received and it was not responsive. Therefore, the Board authorized staff to negotiate with potential. suppliers. Mr. Dolan introduced Ms. Bonnie Allen, Risk Manager, who stated that the purpose of the Security Access and Video Systems is to improve security for the protection of District employees and District facilities and equipment while allowing the District to remain accessible to our ratepayers. There have been a number of incidents in recent years which have caused concern. A security assessment was done considering the functional operations of the District, physical conditions, crime in the surrounding area, and internal incidents. The following recommendations emerged out of that consultant evaluatio.n: . Train employees in how to respond to someone acting in a threatening or abusive manner. . Improve physical conditions including lighting, fencing, and gates. . Install electronic equipment to improve security of District work forces. Ms. Allen stated that training and improvement of physical conditions have been completed. Research has been done to determine the benefits of security systems and locations where the systems were in use have been toured. Ms. Allen provided an overview of the proposed system and locations for various types of alarm and access equipment. Discussion followed with regard to the training provided for District employees, the security systems now in place at the District, and the need to respond quickly to employee safety needs. It was moved by Member Boneysteele and seconded by Member Lucey, that award of a contract to Northland Control Systems be authorized in the amount of $80,650 for the District's Security Access and Video Systems, DP 8172. The motion was approved with Member Nejedly voting no. b. AUTHORIZE AWARD OF CONTRACT TO JEFFCO PAINTING & COATING. INC. FOR CLEANING AND PAINTING OF THE LIGHT INDUSTRIAL BUILDING. 4737 IMHOFF PLACE. MARTINEZ. CALIFORNIA Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Boneysteele and seconded by Member Nejedly, that award of a contract be authorized to Jeffco Painting & Coating, Inc., the lowest responsible bidder, for $16,766 for cleaning and painting the light industrial building at 4737 Imhoff Place, Martinez, California. There being no objection, the motion was unanimously approved. 9. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that the Pollution Prevention Awards Program was instigated to provide a positive program which is complimentary to the enforcement program the District manages for commercial and industrial customers. Applications for the 1997 awards have been solicited, and the screening process is about to begin. Mr. Dolan asked if any Board Members wished to participate in the screening process. President Menesini and Member Lucey volunteered. 2) Mr. Dolan, General Manager-Chief Engineer, stated that over the years the District has invested considerable resources, time, and money into 09 04 97 217 strengthening District buildings preparing for a seismic event. The major plant expansion project of the 1970's required substantial improvements to conform to Building Code standards. In the 1980's buildings were strengthened to meet "life safety" criterion. That is, best efforts were made to ensure the safety of employees from structural collapse. After the Loma Preata earthquake technical analysis of failures became available and attention has focused on, in some cases, relatively simple improvements which will keep vital process units operational, or if they become inoperable, will enable the Plant to get back into operation much sooner. Mr. Dolan stated that Plant Engineering Division Manager William E. Brennan took on this job and will update the Board on the predesign report that has been prepared. Prior to Mr. Brennan's report, Mr. Dolan introduced Deputy Chief Engineer Robert A. Baker who provided an overview of the consultant selection process. Mr. Baker stated that about five years ago, the water industry got into seismic issues in some depth. The water system is very important in an earthquake because it is needed to fight fires that many times result from an earthquake. The District became interested in this in a proactive sense, feeling that we could make use of this expertise to make cost effective modifications that would allow the wastewater treatment plant facility to be brought back on line shortly after an earthquake. In 1993 EOE Consultants were hired to do a seismic evaluation of District facilities at a cost of $194,000. EOE was hired for this work without going through the normal consultant selection process because in 1993 they were the only firm doing seismic planning. EOE did a good job and the recommended project was included in the Capital Improvement Budget. With regard to the consultant procurement process, Mr. Baker stated that 48 engineering contracts have been executed so far this year. These contracts are mostly in the $10,000 to $20,000 range, with a few being over $50,000 and requiring Board approval. For those engineering contracts over $100,000, the District typically uses a formal selection process which includes a Request for Oualifications/Request for Proposals (RFO/RFP). In the case of the Treatment Plant Seismic Upgrade Project, eight RFP's were sent out, four responses were received, and two firms were interviewed. In this case the Montgomery Watson/Ruth & Going team was selected based more on an evaluation of the team and approach to be used and less on the cost. A District selection team made this recommendation which was approved by Plant Engineering Manager Bill Brennan, and concurrence was received from the Deputy Chief Engineer and the General Manager- Chief Engineer. The recommendation will then be presented to the Board of Directors for final approval. Mr. Baker stated that large, complicated projects are often split into predesign and design phases. A predesign is done to help determine the best project alternative. That information is then used to negotiate the design cost and monitor the consultant selected. The predesign is done with the idea that if the consultant does a good job and their price for the design phase is acceptable, they will likely be selected for design. President Menesini thanked Mr. Baker for his presentation and stated that as a Board Member who has questioned the consultant selection process, this presentation has shed light on the subject. Mr. William E. Brennan, Plant Engineering Division Manager, provided an overview of the results of the Treatment Plant Seismic Upgrade Project Predesign Report. Mr. Brennan stated that the design criteria for the Treatment Plant site is related to the Concord fault half a mile east of the Treatment Plant, an earthquake magnitude of 6.5, and peak ground acceleration of 0.5 g. The Treatment Plant site is on firm material. Ground shaking is the major hazard as opposed to liquification. Outside the main Treatment Plant site, the material is less firm and settlement is possible outside that central plant area. As Mr. Dolan stated, projects have been 09 04 97 218 09 done to retrofit the Treatment Plant and to address life safety issues. EOE International was hired early in 1993 to perform a seismic evaluation of the Treatment Plant. The approach used in the current seismic upgrade is a practical one: . Retrofit to minimize damage wherever practical; and . Where not cost effective to retrofit, plan for temporary measures and repair damage. Mr. Brennan stated that prior to doing any retrofits, it is expected that the post earthquake situation would include inoperative headworks, loss of utilities, damaged primary clarifier internals, mechanical failure of secondary clarifiers, damaged aeration channel walls and diffusers, lack of aeration air, short term loss of sludge dewatering, loss of sludge thickening, and loss of sludge combustion. It would probably be necessary to haul sludge to a landfill for some period of time. The Predesign Report recommends the following major items in structural and electrical reliability areas: . Strengthen aeration basin divider walls; . Modify the secondary clarifiers; . Provide a separate above-ground power supply from the main substation to the plant distribution system; and . Provide a direct power feed from the standby power facility to the headworks pumps. Mr. Brennan stated that the preliminary cost estimate for this work is $4 million. Following discussion of the stability of the outfall, President Menesini thanked Messrs. Baker and Brennan for their reports. 3) Mr. Dolan, General Manager-Chief Engineer, stated that when Member Lucey left the Corbett & Kane law firm, the District had ongoing legal work that was managed by Mr. Dan Clinton. The District then engaged in a business relationship with Mr. Clinton's new law firm, Hanson, Bridgett, Marcus, Vlahos, Rudy. The Board expressed an interest in a recruitment effort to undertake a comprehensive review of available legal talent in selecting labor counsel for the future. Proposals were solicited and a Board Committee (Members Nejedly and Menesini) reviewed proposals from eight firms and developed a short list of four firms for interview. The process was suspended because of ongoing labor negotiations. If the Board wishes, it would now be timely for the Board to proceed with this process. Following discussion, it was agreed that the firms of Breon, O'Donnell, Miller, Brown & Dannis and Meyers, Nave, Riback, Silver & Wilson would be asked to submit proposals for submission to the Board Committee for consideration, and that the Board Committee make a recommendation to the full Board as to how to proceed. 4) Mr. Dolan, General Manager-Chief Engineer, stated that at a recent Board Meeting, interest was expressed in visiting certain project sites of current or recently completed construction. Following discussion, a visit to the Headworks Facilities Enhancement Project, the Clearwell, and the Martinez M-2 Pipeline Repair was scheduled for 10:00 a.m. on Wednesday, October 22, 1997. 5) Mr. Dolan, General Manager-Chief Engineer, announced that work is proceeding on the Household Hazardous Waste Collection Facility open house. Mr. Dolan asked if any Board Members wished to assist with that process. President Menesini volunteered. 04 97 6) 7) 8) 9) 10) 11 ) 12) 13) 14) 219 Mr. Dolan, General Manager-Chief Engineer, announced that the Fair Political Practices Commission (FPPC) has issued an advice letter ruling indicating that a web page on the Internet is not currently considered a mass mailing and therefore not subject to the rules that prevail for mass mailings. Mr. Dolan, General Manager-Chief Engineer, announced that the District will be working with East Bay Municipal Utility District, Sacramento Regional, Portland, and Seattle on a benchmarking study on effective operations. Mr. Dolan, General Manager-Chief Engineer, announced that even though there was no rate increase, budgeted revenues from the Sewer Service Charge for the current fiscal year will exceed the previous year by $784,000. Of this, $275,000 is due to growth and $509,000 is due to the efforts of employees working on data base clean up and multiple use parcel identification. Special thanks go to Engineering Assistant Lesley Kendrick, Sewer Service Charge Technician. Brenda Wener, Principal Engineer Curt Swanson, and Infrastructure Division Manager Jay McCoy, as well as the many people who have been supporting their efforts. Mr. Dolan, General Manager-Chief Engineer, announced that Mr. Dave Reindl, Associate Engineer, will attend and witness pump testing in Melrose Park, Illinois. This will be funded through a capital project. Mr. Dolan, General Manager-Chief Engineer, announced that the District has received payments from a failed insurance company known as Proprietors Insurance Company. A check in the amount of $150,000 was received in settlement of the Helix litigation, and a check in the amount of $1 .25 million was received in settlement of all other claims (the Pond A and Acme matters). It was requested that District Counsel report on insurance recoveries at a future Board Meeting. . Mr. Dolan, General Manager-Chief Engineer, announced that Contri Construction, the contractor on the M2-B Pipeline Project, carried the District's claim with their own claim through to resolution. The District received payment in the amount of $37,500 for our expenditures. Mr. Dolan, General Manager-Chief Engineer, announced that the District has selected Phillips, Inc. as the contractor for disposal of household hazardous waste. The actual cost will be based on the amount to be disposed of, but the budget includes $175,000 for this contract. Mr. Dolan, General Manager-Chief Engineer, announced that the District has received two Notices of Violation from the Bay Area Air Quality Management District (BAAQMD) which may lead to fines. These were technical violations because of start-up complications with the monitoring equipment for the cogeneration process.. Mr. Dolan stated that staff does not believe any emissions were produced that violated any standards. Mr. Dolan, General Manager-Chief Engineer, announced that two very important retirement announcements have been made. Both have been hinted at in recent months so they do not come as a shock, but both will result in radical changes to the District and both will be sorely missed. Risk Manager Bonnie Allen and Deputy Chief Engineer Robert A. Baker have announced they plan to retire in the first quarter of 1998. President Menesini stated that both Ms. Allen and Mr. Baker will be missed. At this time, President Menesini proceeded to Item 10., Break. 10. BREAK At 5:02 p.m., President Menesini declared a recess, reconvening at the hour of 5:13 p.m., with all parties present as previously designated. At this time, President Menesini reverted to the order of the agenda. 09 04 97 220 b. c. d. 9. REPORTS COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) Board Members reported on the August 20-23, 1997 California Association of Sanitation Agencies (CASA) Conference at which topics of discussion included deregulation of electrical utilities, opposition to land application of biosolids, receipt of an award for the District's dewatering system work, and cost efficiencies achieved by Oro Loma .Sanitary District. At 5:30 p.m., Member Boneysteele requested to be excused and left the meeting, indicating that he had a prior commitment. 2) Member Hockett reported on the August 28, 1997 meeting of the Sanitation and Water Agencies of Contra Costa County at which resolution of the Livermore Amador Valley wastewater disposal issues was reported and master planning for a recycled water distribution system was proposed by former Central San Board Member Susan McNulty Rainey. 3) Member Lucey, Chair of the Personnel Committee, reported on the August 19, 1997 Personnel Committee meeting at which authorization was given to fill the vacant and budgeted Secretary 1/11, Maintenance Coordinator 1/11, and Network Coordinator positions. 4) President Menesini reported on the recent Friends of the San Francisco Bay Estuary Committee meeting he and Plant Operations Department Manager Charles Batts attended. Efforts are being made to seek funds for public education from various foundations and fine revenues. 10. BREAK This item was taken out of order earlier in the agenda. a. b. 11. ENGINEERING This item was pulled from the agenda prior to posting. ACCEPT CONTRACT WORK FOR THE REINSTALLATION OF FLEXIBLE NEOPRENE FLAPS ON THE OUTFALL DIFFUSERS. DP 7184, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Ba Than, Associate Engineer, who reported that the work has been completed on the submerged section of the outfall. Three access manhole covers were installed, sediment was removed from inside the outfall pipe, and 11 diffuser flaps were reinstalled. Mr. Than showed slides and described the work that was done. It was moved by Member Lucey and seconded by Member Nejedly, that the contract work be accepted for the reinstallation of the flexible neoprene flaps on the outfall diffusers for the Outfall Improvements Project, Phase IV, DP 7184, and that the filing of the Notice of Completion be authorized. There being no objection, the motion was approved with Member Boneysteele being absent. 09 04 97 221 c. ADOPT RESOLUTIONS TO PROCEED WITH THE FORMATION OF A DEMONSTRATION PROJECT TO BE NAMED THE LEONA COURT CONTRACTUAL ASSESSMENT DISTRICT NO. 97-2 Mr. Jay S. McCoy, Infrastructure Division Manager, stated that the action before the Board is consideration of adoption of two resolutions which will lead to the formation of the Leona Court Contractual Assessment District (CAD) No. 97-2. There are eight properties on Leona Court. Four owners will pay for the improvement. Sometime in the future as other property owners connect their homes, they will pay their share and the original owners who funded the project will be reimbursed plus interest. Mr. McCoy described repayment charge options presented for the Board's consideration, recommending that this be kept as simple as possible. Following discussion, it was the consensus of the Board that the repayment period be set at 30 years. It was moved by Member Hockett and seconded by Member Lucey, that Resolution Nos. 97-150 and 97-151 be adopted, approving the boundary map and requesting consent of Contra Costa County for Leona Court CAD No. 97-2; and that the repayment period be set at 30 years. There being no objection, the motion was approved with Member Boneysteele being absent. At 5:55 p.m., Member Hockett left the meeting. 12. HUMAN RESOURCES ADOPT REVISED JOB CLASS DESCRIPTION FOR THE POSITION OF NETWORK COORDINATOR (G-65. $3.689-$4.471) a. Member Lucey, Chair of the Personnel Committee, stated that this matter was reviewed and endorsed by the Personnel Committee. The class description is being revised but no change in compensation is proposed. It was moved by Member Lucey and seconded by President Menesini, that the revised job class description for the position of Network Coordinator be adopted to reflect the duties that the position has developed. There being no objection, the motion was approved with Members Boneysteele and Hockett being absent. b. DIRECT STAFF TO SECURE THE SERVICES OF AN ARBITRATOR IN ACCORDANCE WITH STEP FOUR OF THE GRIEVANCE PROCEDURE WITH REGARD TO GRIEVANCE OF TWO ISSUES RELATING TO CALL-BACK PAY It was moved by Member Lucey and seconded by Member Nejedly, that staff be authorized to secure the services of an arbitrator in accordance with step four of the grievance procedure in the matter of the appealed grievance relating to call-back pay of Public Employees' Union, Local One. There being no objection, the motion was approved with Members Boneysteele and Hockett being absent. c. AMEND EMPLOYMENT CONTRACTS WITH GENERAL MANAGER-CHIEF ENGINEER AND SECRETARY OF THE DISTRICT Member Lucey, Chair of the Personnel Committee, stated that this matter was reviewed by the Personnel Committee. The proposed change with regard to terminal compensation is to comport with the contracts approved with the other bargaining units. In addition, the Secretary's Cafeteria Plan effective date and amount will be made the same as the other managers. The difference will be added to salary. Member Lucey stated that the Personnel Committee recommends approval of the proposed amendments. It was moved by Member Lucey and seconded by President Menesini, that the current employment contracts with the General Manager-Chief Engineer (GM-CE) and the Secretary of the District be amended to delete reference to terminal compensation thus applying the terminal compensation program in place for all other District employees to the GM-CE and the Secretary, and to fully integrate the Secretary's benefits program into 09 04 97 222 the managers' benefits program. There being no objection, the motion was approved with Members Boneysteele and Hockett being absent. 13. APPROVAL OF MINUTES MINUTES OF AUGUST 7. 1 997 a. It was moved by Member Nejedly and seconded by President Menesini, that the minutes of August 7, 1997 be approved as presented. There being no objection, the motion was approved with Members Boneysteele and Hockett being absent. 14. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED SEPTEMBER 4. 1 997 a. It was moved by Member Nejedly and. seconded by President Menesini, that the Expenditure List dated September 4, 1997, including Self-Insurance Check Nos. 101342- 101343, Running Expense Check Nos. 105103-105540, and Sewer Construction Check Nos. 18729-18814, be approved as recommended. There being no objection, the motion was approved with Members Boneysteele and Hockett being absent. 15. BUDGET AND FINANCE a. AUTHORIZE AMENDMENT TO THE DEFERRED AGREEMENT WITH GREAT WESTERN BANK COMPENSATION PLAN Ms. Deborah Ratcliff, Controller, reviewed the recommendation for amendment of the Deferred Compensation Plan Agreement with Great Western Bank, adding a new list of core funds and allowing future fund changes and administrative matters to be approved by the Controller as Chairperson of the Deferred Compensation Committee. Member Hockett returned to the meeting at the hour of 6:00 p.m. Ms. Joyce E. Murphy, Secretary of the District, stated that Member Boneysteele feels that fund changes should not be delegated to staff but should be reviewed by the Board. Member Boneysteele recommends that any proposed fund changes be presented to the Board in writing for consideration on the Consent Calendar. In the discussion that followed it was stated that it would be prudent for the Board to keep themselves independent of the choices of the selection of funds available to the employees since the Deferred Compensation funds invested are the employees' choices, and three providers and numerous investment options are available. Investments not only gain value, they also can lose value. It is important for the Board to remain in the position of making the program available, but not influencing options. Those choices should be left to the employees' Deferred Comp Committee. Ms. Ratcliff stated that the agreements with the other two providers, Hartford and ICMA, allow them to make changes in the list of core funds as they deem appropriate. Mr. Dolan stated that information will go to all employees when a change is made. Board Members can be added to the list to receive that information. It was moved by Member Hockett and seconded by Member Lucey, that amendment to the current Deferred Compensation Plan Agreement with Great Western Bank be approved, adding a new list of core funds and allowing future fund changes and administrative matters to be approved by the Controller as Chairperson of the Deferred Compensation Plan Committee. There being no objection, the motion was approved with Member Boneysteele being absent. b. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Following discussion in which it was noted that no change is proposed in the District's Investment Policy, it was moved by Member Lucey and seconded by Member Nejedly, that the District's Statement of Investment Policy be approved. There being no objection, the motion was approved with Member Boneysteele being absent. 09 04 97 223 c. RECEIVE JULY 1997 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance expenses for the month of July 1997, noting that expenditures were $434,000 less than budget, representing a 16.6 percent favorable variance. Revenues of $1,145,000 were $334,000 less than budget, representing a 22.6 percent unfavorable variance. Ms. Ratcliff noted that a correction will be made in the budget moving the anticipated receipt of Household Hazardous Waste revenue to the end of the fiscal year, since the billing will not be made until that time. Ms. Ratcliff reported that temporary investments were held in Treasury bills and Treasury notes, commercial paper, and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 5.14 percent to 6.45 percent. The latest interest rate as of July 1997 was 5.14 percent. The average yield of the LAIF account through June 1997 was 5.667 percent. President Menesini declared that the July 1997 Financial Statements were duly received. 16. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 17. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Lucey suggested that the Personnel Committee or the full Board discuss some sort of strategic plan, other than the Capital Improvement Budget, considering opportunities for competitiveness and entrepreneurial activities that would benefit the District and the ratepayers. President Menesini stated that the Board previously considered having a Board Workshop but did not proceed with that idea. President Menesini stated that Member Lucey's suggestion might be an appropriate topic of. discussion for a Board Workshop and suggested that the idea of a Board Workshop be revisited. Mr. Dolan, General Manager-Chief Engineer, stated that the Managers' Forum has been discussing the concept of a long term operating plan. The City of Concord has been doing a 10-year operating plan in recent years. The District's Management Team met with Concord City Manager Ed James on that subject. Although the City's operations, particularly with regard to long-term budgetary implications of capital projects like landscaping and street maintenance, are quite different from the District, a committee has been formed to look into the idea of a five-year operating plan for the District. Member Hockett requested an update at a future meeting on safety issues and planning, and the possibility of using an Occupational Health Nurse Practitioner. It was noted that District Counsel was requested to report on insurance recoveries at a future Board Meeting. 18. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 6: 18 p.m. ~~VVf vV!~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 09 04 97