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HomeMy WebLinkAboutBOARD MINUTES 10-02-97 232 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 2, 1 997 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 October 2, 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. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through g., excluding Items c. and d. which were pulled for discussion, be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Grants of Easements were accepted from John J. and Patricia S. Greene, Trustees, Daniel J. and Mary Louise McDonnel, and Frederick A. and Carole R. Johnson for the South Orinda Sewer Improvements Project, DP 4928; staff was authorized to record said Grants of Easements with the Contra Costa County Recorder; and Resolution Nos. 97-155, 97-156, and 97-157 were adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Nejedly, Boneysteele, Menesini None None b. Consent to Assignment and Assumption of Interest in Lease Agreement with the Willows Concord Venture, loP. (Assignor) and Willows Center Concord, loloC. (Assignee) was approved relating to lease of District property at the Willows Shopping Center; the President of the District Board of Directors was authorized to execute said Consent to Assignment and Assumption of Interest in Lease Agreement; recording was authorized; and Resolution No. 97-158 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Nejedly, Boneysteele, Menesini None None c. Item c. was removed from the Consent Caltmdar for discussion. d. Item d. was removed from the Consent Calendar for discussion. 10 02 97 233 Resolution No. 97-160 was adopted, concurring with and adopting the Notice of Exemption of the Local Agency Formation Commission (LAFCO), certifying that the Board has reviewed and considered the Notice of Exemption, ordering the filing of Notice of Determination as a Responsible Agency stating that the District considered the Notice of Exemption as prepared by LAFCO as required, and ordering the completion of District Annexation 136, Parcels 1, 2, 3, 4, 6, and 10. e. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: f. Lucey, Hockett, Nejedly, Boneysteele, Menesini None None The contract work for the construction of the Rossmoor Sewer Improvements Project, Phase 3 (DP 5196), in Walnut Creek, 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: Lucey, Hockett, Nejedly, Boneysteele, Menesini None None The request by Ms. Marilee Davi, Utility Worker, for an emergency withdrawal of $3,000, after taxes, from the Deferred Compensation Plan was approved as recommended by the Deferred Compensation Plan Advisory Committee. g. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Nejedly, Boneysteele, Menesini None None At this time President Menesini proceeded to Consent Calendar Items c. and d., which were removed from the Consent Calendar for discussion. With regard to Consent Calendar Item c., President Menesini noted that there had been a problem with contamination of the Hookston Station site. Mr. Kenton L. Aim, Counsel for the District, provided background on the matter. Mr. Aim stated that the District has now been dismissed from the lawsuit and that should absolve the District from any responsibility for site contamination and clean up. The District does have protection of the Court for having settled in a manner which would protect the District from any of the current litigants bringing further claims against the District. Mr. Roger J. Dolan, General Manager- Chief Engineer, stated that remediation of the property is underway. Following discussion, it was moved by President Menesini and seconded by Member Hockett, that the Grant of Easement from Contra Costa County for property rights in the former Southern Pacific Railroad Right of Way, Parcel No.1 0 (Hookston Station), DP 4224 be approved; that the President of the District Board of Directors and the Secretary of the District be authorized to execute and record said Grant of Easement; and that Resolution No. 97-159 be adopted to that effect. Motion unanimously approved on the following vote: 10 97 02 234 AYES: Members: Menesini, Hockett, Lucey, Nejedly, Boneysteele NOES: Members: None ABSENT: Members: None Following discussion of Consent Calendar Item d. in which it was stated that the property owner George Milliken favors the proposed annexation, it was moved by Member Nejedly and seconded by Member Hockett, that authorization be given for P.A. 97-10 (Orinda) to be included in a future formal annexation to the District. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini None None 4. HEARINGS a. HOLD PUBLIC HEARING ON INHABITED DISTRICT ANNEXATION 136. PARCELS 5. 7. 8. AND 9. AS AMENDED BY THE LOCAL AGENCY FORMATION COMMISSION AND CONSIDER THE NOTICE OF EXEMPTION BY THE LOCAL AGENCY FORMATION COMMISSION Mr. Dolan, General Manager-Chief Engineer, stated that the Local Agency Formation Commission (LAFCO) added parcels to this annexation during its approval process. A public hearing is required due to the addition of these properties. Staff is not aware of any opponents to the proposed annexation. At 2: 13 p.m., President Menesini opened the public hearing to consider testimony from affected property owners before acting on the proposed amended District Annexation 136, Parcels 5, 7, 8, and 9. There being no comments, the public hearing was closed. It was moved by Member Boneysteele and seconded by Member Hockett, that Resolution No. 97-161 be adopted, certifying that the Board has reviewed the Notice of Exemption, ordering the filing of a Notice of Determination as a Responsible Agency stating that the Board considered the Notice of Exemption, concurring the with adoption of the Notice of Exemption of LAFCO, and ordering the completion of District Annexation 136, Parcels 5, 7, 8, and 9 as amended by LAFCO. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Hockett, Lucey, Nejedly, Menesini None None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1 ) Mr. Dolan, General Manager-Chief Engineer, stated that by the turn of this decade environmental scientists and engineers had realized that we needed to suspend big, expensive public works solutions to issues of environmental contamination. The costs and environmental consequences entailed in removing contaminants was far greater than keeping pollutants out of the environment in the first place. A new focus, dubbed "pollution prevention," using proven techniques with a new emphasis on citizen behaviors was begun across the nation and here at the District. While the District had 10 02 97 235 managed a source control program dealing with commercial and industrial customers since the 1970's, the new direction required an education program to get the word out, inexpensively, to the right people, and in a manner that would encourage people to want to cooperate. District pollution prevention efforts have included solid waste recycling, energy conservation, public education, and soon household hazardous waste collection. Mr. Dolan introduced Ms. Harriette Heibel, Community Affairs Manager, who provided an overview of the 1997-1998 District student education programs. Ms. Heibel stated that the District has several programs aimed at getting the pollution prevention message out including a community newsletter, household hazardous waste information, pollution prevention awards and activities, and environmental events. Ms. Heibel stated that the update today will focus on the third grade Sewer Squad Program, the high school Protecting the Bay Program, Newspapers in Education partnership, Heather Farm partnership, Kids in Gardens, and future partnership opportunities. With regard to the Newspapers in Education partnership, Ms. Heibel stated that the District sponsored a pollution prevention forum with ten other agencies throughout the County. The District developed an environmental connections curriculum and a student guide for this program which will be used in other District programs. This program reached 2,827 students in 55 schools in the District service area. This program can be used again next year without a great deal of additional District staff involvement. The Heather Farm partnership is a natural science classroom program including the District's household hazardous waste and pollution prevention messages. The District produced a promotional brochure for the program and developed a student "game sheet" which can be used again in the Newspapers in Education partnership. A parent handout was also developed. This program will reach about 900 students in 30 classrooms and will be an on going program. Ms. Heibel stated that an extensive curriculum has been developed for the high school Protecting the Bay Program which was piloted in two schools in spring 1 997. Eighteen teachers attended the teachers' workshop this summer. Ten of those teachers indicated they will use the program in their classrooms. The curriculum includes a variety of elements including lessons, experiments, activities, and water test kits. A teacher evaluation workshop will be held in December for teachers currently using the program. Staff is investigating the possibility of getting this program into classrooms through a partnership with Friends of the San Francisco Bay Estuary. Ms. Heibel stated that the Kids in Gardens Program is a partnership with the Aquatic Outreach Institute to develop a pesticide reduction education program for students from kindergarten through 12th grade. This program is modeled after the very successful Kids in Creeks program. District staff produced printed materials for the program. A workshop will be held in March 1998. Ms. Heibel stated that the District's Sewer Squad program is in its third year. It has won several awards including awards from Boy Scouts of America and the California Water Environment Association. Other treatment plants are copying it for use in their service areas. Ms. Heibel introduced Mr. Tim Tullis, Public Information and Production Assistant II, who stated that an evaluator was hired to evaluate the Sewer Squad Program last year and evaluations will continue to be done in the future. The final evaluation report was provided to the Board last spring. It included pre- and post-tests, and meetings with the presenters. The recommendations included in the final report were also used by the District in revising the presentation materials and activities. Mr. Tullis stated that one of the goals of the program is to develop activities and information that can be used in a 10 02 97 236 number of places. The District was able to do that in this case. Mr. Tullis distributed and described the revised materials. Last year the Sewer Squad program reached about 3,000 students in 70 classrooms. In response to a question from Member Boneysteele, Mr. Tullis stated that the cost of this program is $135 per classroom event. The materials were produced by the District in-house. In response to a question from Member Hockett, Mr. Tullis stated that alternatives for the Walnut Creek Intermediate School Program are being considered. Member Hockett stated that the materials and information included in the District's student education programs are outstanding. Member Boneysteele echoed Member Hockett's comments. President Menesini stated that the ultimate test of these types of programs is to look at the behavior of people in the future and their association with the programs, the environment, and watershed. President Menesini requested that those who participated initially in the high school program be included again in the future. Ms. Heibel stated that they were invited to the spring workshop and only one or two came. Ms. Heibel stated that she would send a personal letter to them inviting them to participate. President Menesini also suggested that the principals and administrators the District met with at the beginning of the program be advised of the current status and the District's commitment to them. Finally, President Menesini stated that one of the ultimate ways of communicating with the public is newspapers. At the next Environmental Alliance meeting Mr. Denis Cuff, Environmental Reporter for the Contra Costa Times will speak. President Menesini invited anyone interested to attend the meeting at noon on Monday, October 20, 1997 at the John Muir Home in Martinez. 2) Mr. Dolan, General Manager-Chief Engineer, stated that steady progress is being made in working with Zone 1 recycled water customers. These customers have no experience with recycled water and have much at stake, relying on the successful application of recycled water. As the Board directed, certain customer-specific connection related expenses will be recovered by the water rates. When that issue was discussed with the Board previously, the Board was advised that there was a special issue with the Contra Costa Country Club given their recent large investment in new greens and their concerns about protecting them. Staff has been working with them on the costs of separating their irrigation system. Staff now has some fairly reliable cost figures to share with the Board. Mr. Dolan introduced Ms. Lynne Putnam, Senior Engineer, who stated that the goals of the Zone 1 Recycled Water Program are to provide recycled water to four large customers by spring 1998, to preserve the State loan, and to maintain low rates to customers. Ms. Putnam stated that the District applied for a loan from the State dependent on the four large-use customers. As part of the State loan process, a cost/benefit analysis was done based on sales of recycled water. The customer contracts include specific minimum amounts of recycled water. Construction of the entire system must be started in order to receive State loan funds. Ms. Putnam stated that the draft customer contracts were reviewed by the Board on October 3, 1996. The draft customer contracts include provisions for minimum amount of recycled water use, termination of recycled water service with cause, recycled water rates of less than 80 percent of Contra Costa Water District rates, and a 60-day termination clause for Contra Costa Country Club. Ms. Putnam stated that it is planned that this 60-day termination clause will be amended out of the final customer contract. The Contra Costa Country Club recycled water agreement calls for a minimum use of 173 AF/YR recycled water. The feasibility study completed by the Country Club's consultant found that they could safely use 300 AFIYR recycled water. It is recommended that the greens and some of the trees 10 02 97 237 be separated from using recycled water. The Country Club has agreed to pay half of the greens separation costs. A contract to that effect will be needed. In response to a question from President Menesini, Mr. Kenton L. Aim, Counsel for the District, described the process in the contract that allows a customer to cut back or limit use of recycled water if it can legitimately be established there is a problem with use of the recycled water. Ms. Putnam stated that design of customer connections is 100 percent complete. The plans and specifications have been submitted for the State loan approval to advertise. Treatment Plant construction is on schedule. The customer cost estimate is higher than anticipated. Ms. Putnam reviewed the customer-related expenses as set forth on the handout provided to the Board. The original cost estimate for connection was $500,000. The new estimated cost if $710,500. The original cost estimate for retrofitting Contra Costa Country Club was $50,000. The current cost estimate is $250,000. There was no specific charge to other customers. The retrofit charge is included as part of their rates. The total original cost estimate was $550,000. The current cost estimate is $960,500. It is proposed that the District front the money for retrofitting and recover that costs through the rates for recycled water. Ms. Putnam stated that actual recycled water demand as opposed to minimum usage was reviewed. It was found that increased demands will offset the increase in estimated costs. The current recycled water average rate is $395/AF. The current rate for canal water has increased significantly over the past years and it will likely go up again in the coming year. It is now $450/AF. The current cost for Contra Costa Water District potable water is $1,000/AF. Ms. Putnam stated that the next steps include negotiating an amendment with Contra Costa Country Club to remove the 60-day termination clause; securing State Water Resources Control Board approval to advertise for construction; advertising, approving bids, awarding contract, and constructing the project; and negotiating a separate retrofit agreement with Contra Costa Country Club. President Menesini thanked Ms. Putnam for her presentation. 3) Mr. Dolan, General Manager-Chief Engineer, stated that at the last Board Meeting additional information was requested on the insurance for the Household Hazardous Waste Collection Facility. District staff has worked with an outside consultant in that regard. The final insurance package has not yet been contracted for, so there is some flexibility. Mr. Dolan introduced Plant Engineering Division Manager William Brennan, who stated that it is intended that AIG will provide pollution legal liability insurance for the Household Hazardous Waste Collection Facility. Commerce and Industry Insurance Company will provide the general liability insurance. Commerce is affiliated with the AIG Group. Mr. Brennan stated that both insurers have the same ratings, the highest awarded. The pollution legal liability insurance has a $50,000 deductible and $10,000,000 "Claims Made" coverage. The estimated annual premium is $36,500. Mr. Brennan described the coverage as set forth on the handout provided to the Board. The general liability insurance has a $1,000 deductible and coverage per occurrence of $5,000,000 for general aggregate, $5,000,000 for each occurrence, $5,000,000 for personal and advertising: injury, $5,000,000 for productslcompleted operations aggregate, $50,000 for fire damage, and $5,000 for medical expenses. The estimated annual premium of the general liability insurance is $25,000. Following discussion of the estimated annual premium costs, the coverages provided, and environmental assessment of the site, President Menesini thanked Mr. Brennan for his report. 10 02 97 238 6) 10 4) Mr. Dolan, General Manager-Chief Engineer, stated that the District is in the process of doing a comprehensive study of odor sources and control options with the goal of minimizing odors to the greatest extent practicable. The final report or conclusions have yet to be produced by Brown and Caldwell, but there is an early outcome of a small piece of work that can be done to enhance existing facilities and operations. The Plant Operations Department has taken the lead in implementing several of those operational and mechanical adjustments and improvements. Staff is now working on scoping the engineering work associated with implementation. A position paper may be presented to the Board if the outside consulting engineering work exceeds $50,000. If the work is less than $50,000, staff would proceed with Brown and Caldwell to get the engineering work done. 5) Mr. Dolan, General Manager-Chief Engineer, stated that as the Leona Court Contractual Assessment District (CAD) Demonstration Project has proceeded, one sticking point has been identified. The problem was that as the financing plan was originally conceptualized, the cost to future connectors would have been significantly less than the cost to the original participants. This fact would provide an incentive for property owners to stay out of the original group of participants thus disadvantaging those who chose to proceed and reducing the driving force to proceed with the CAD. Mr. Jay S. McCoy, Infrastructure Division Manager, has given considerable thought to this issue and developed a recommended plan for future buy-in that eliminates this disincentive. Member Boneysteele stated that for many years the District had a rebate ordinance. About 18 months ago, a comprehensive revision was done to simplify and streamline the District rebate process in that it was eliminated. Mr. Dolan stated that is a separate but related issue. If the Board wishes to bring back the rebate issue, it may do so. Member Boneysteele stated that he is concerned that the Board very casually eliminated an important part of the District financing structure. Mr. Dolan stated that if the Board wishes, this matter can be placed on a future agenda. The matter before the Board today is adoption of rules for buy-in for CAD's. Mr. McCoy stated that the participants are those people who will assume assessments and pay for the cost of the sewer installation. Non-participants are those who choose not to participate in the cost of the initial construction project. At the last Board Meeting, the Board provided guidance to staff with regard to the length of time the repayment charge would be in place. That was 30 years. The concept presented for consideration today is different than that and would replace that process. In the Leona Court CAD the four original participants will be assessed $22,567 each to pay the assessment over ten years. The cost would be $16,000 if they wished to pay up front. The $22,567 figure includes an interest assessment. Mr. McCoy stated that the fifth connector to the Leona Court CAD would pay $18,054. That money would be divided up equally between the four original participants either by lowering assessments or rebating money to the current owner at that time. When the assessments are done everyone will be at the same level at that time. Using this method, Mr. McCoy stated that at any point in time, the payments would be equivalent. Mr. McCoy displayed a chart showing the costs as each resident connects. Following discussion, the Board complimented Mr. McCoy on this innovative approach to ensure equity and indicated that staff should proceed with this method. Mr. Dolan, General Manager-Chief Engineer, stated that earlier in the year the Board discussed the issue of staying in the Central Contra Costa Solid Waste Authority (CCCSWA) or getting out at the time former Board Member Sue Rainey was appointed to the Walnut Creek City Council and left the District Board. At that time the Board decided to remain in CCCSWA. That decision centered around fulfilling the commitment the District had made to 02 97 239 the other members of CCCSWA. It is timely to revisit this issue. Mr. Dolan requested Board input with regard to remaining in CCCSWA or withdrawing. President Menesini stated that his long-term desire to get out the CCCSW A was tempered by the difficulties encountered. The District did a lot of things including lowering garbage rates, uncovering malfeasance by a garbage collector, and educating the people that will come after us. One might say the District was finished at that time, but that was not the case. President Menesini stated that District staff and Board are vital players and he does not see that coming to an end. President Menesini stated that the District should continue its role providing help and expertise to CCCSWA. Discussion followed relative to the role of the District, and the impact of acquisition of the landfill or transfer station on CCCSW A and its staff. Member Lucey stated that the issue of District membership on CCCSWA was divisive when it came up previously. At that time, the decision was made to remain a member of CCCSWA until the end of the calendar year. Member Lucey stated that he believes that District should withdraw from CCCSW A as soon as possible and should also cease doing payroll and benefits services for CCCSWA. Member Boneysteele provided historical context from the District's early days of solid waste franchising, through the incorporation of cities and towns, the passage of AB 939 which gave responsibility for solid waste to counties and cities, and the formation of CCCSWA. Member Boneysteele stated that when CCCSWA hired staff and retained the District's Counsel to advise them, he felt the District should withdraw. CCCSWA asked the District to stay because of our expertise. When Sue Rainey was appointed to the Walnut Creek City Council, CCCSWA had the benefit of the District's expertise and the District was no longer needed. Member Boneysteele stated he felt the District should stay through the remainder of the calendar year as previously requested by CCCSWA and decided by the District. That year has nearly come to an end. The District no longer has responsibility for solid waste franchising. The District has been asked to leave CCCSWA once and should take this opportunity to withdraw. Member Boneysteele stated that the District's role and the role of all sanitary districts in solid waste is past. Member Nejedly agreed. Member Hockett stated that she supports CCCSWA exploring the purchase of the landfill. To ignore that would not have been in the public's interest. Member Hockett stated that she will miss being a representative to CCCSWA because it has been an excellent opportunity to provide public service, but she stated that she does agree that the District should dissolve its relationship with CCCSWA. It was moved by Member Boneysteele and seconded by Member Lucey, that the District withdraw from the Central Contra Costa Solid Waste Authority effective December 31, 1 997, and that staff be directed to so advise CCCSWA and to give notice that the District will be terminating payroll and benefit services to CCCSWA as well, to give CCCSWA time to make other provisions. There being no objection, the motion was unanimously approved. Mr. Dolan stated that staff will look into the issue of payroll and benefits services and report back to the Board. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None 10 02 97 240 d. 4) BOARD MEMBERS 1 ) Member Hockett reported on the September 25, 1997 Central Contra Costa Solid Waste Authority meeting at which the solid waste ordinance was passed and purchase of a landfill was discussed in closed session. Mr. Kenton L. Aim, Counsel for the District, stated that it may be appropriate for the District to consider repeal of solid waste ordinance contained in the District Code. 2) Following discussion of the status of the selection process for District Counsel for labor issues, Member Lucey stated that he had asked that proposals be requested from two additional firms. That was done. One firm does not do this type of work and the other firm only does work for school districts. Member Lucey recommended that this firm not be considered further because their experience is limited to school districts. Following discussion, it was the consensus of the Board to go forward with the four firms previously selected for further review: Littler, Mendelson, Fastiff, Tichy & Mathiason; Hanson, Bridgett, Marcus, Vlahos & Rudy, LLP; Atkinson, Andelson, Loya, Ruud & Romo; and Liebert, Cassidy & Frierson. An adjourned regular meeting was scheduled at 1 :00 p.m. on November 13, 1997 to interview candidates for District Counsel for labor issues. Counsel for the District was asked to review the Brown Act requirements as to whether this may be done in open session or closed session. 3) Member Lucey reported that he and President Menesini met as an ad hoc committee for selection of Pollution Prevention Award recipients. Member Lucey stated that 1700 letters requesting nominations were sent out and only five responses were received. In the past District staff has made nominations. The committee came up with ways to get a better response next year. District staff was asked to go to individual industry organizations and request them to nominate individuals or companies who stand out. President Menesini stated the Pollution Prevention Awards will be presented at the industry organization meetings in addition to the District Board Meeting to generate greater recognition for the recipients. President Menesini stated that he recently attended a dinner at which the District received the International Association of Business Communicators Award for the District's 50th anniversary campaign. This item will be calendared on the October 16, 1997 Board Agenda. 5) President Menesini announced that he and Deputy Chief Engineer Robert Baker recently attended the dedication of the Vallejo Sanitary District facilities. . 7. BREAK At 4:40 p.m., President Menesini declared a recess, reconvening at the hour of 4:50 p.m., with all parties present as previously designated. 8. TREATMENT PLANT AUTHORIZE THE SUBSTITUTION OF SOLANO COUNTY ROOFING COMPANY. A NEW SUBCONTRACTOR. FOR ENTERPRISE ROOFING SERVICE. INCORPORATED. THE LISTED SUBCONTRACTOR. FOR THE ROOFING WORK ON THE PRIMARY BUILDING REMODEL PROJECT <DP 6095) a. Following discussion, it was moved by Member Boneysteele and seconded by Member Nejedly, that the substitution of Solano County Roofing Company, a new subcontractor, for Enterprise Roofing Service, Incorporated, the listed subcontractor, be authorized for the work on the Primary Building Remodel Project, DP 6095. There being no objection, the motion was unanimously approved. 10 02 97 241 9. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 4. 1997 b. MINUTES OF SEPTEMBER 18. 1997 It was moved by Member Boneysteele and seconded by Member Nejedly, that the minutes of September 4, 1997 be approved as presented, and that the minutes of September 18, 1997 be approved with the following change. On page 8, the last sentence in the third paragraph was deleted and the following inserted in its place: "In the discussion that followed, Mr. Dolan agreed stating that the District had a practice of selecting various consultants to develop a stable of consultants that can be used on various projects. However, it was clear that Montgomery Watson had been contracted with for a substantial amount of work recently." There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED OCTOBER 2. 1 997 a. It was moved by Member Nejedly and seconded by Member Boneysteele, that the Expenditure list dated October 2, 1997, including Self-Insurance Check Nos. 101353- 101357, Running Expense Check Nos. 105794-106085, and Sewer Construction Check Nos. 18872-18929, be approved as recommended. There being no objection, the motion was unanimously approved. 11. BUDGET AND FINANCE a. APPROVE NEW DIFFERED COMPENSATION CONTRACT WITH HARTFORD LIFE INSURANCE COMPANY Following explanation by Mr. Dolan, General Manager-Chief Engineer, it was moved by Member Lucey and seconded by Member Hockett, that the new Deferred Compensation contract with Hartford Life Insurance Company be approved and the President of the Board be authorized to sign said contract. There being no objection, the motion was unanimously approved. b. RECEIVE AUGUST 1997 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of August 1997, noting that expenditures were $362,000 less than budget, representing a 14.7 percent favorable variance. Year to date expenditures were $800,000 less than budget, representing a 15.7 percent favorable variance. Revenues of $1.2 million were $125,000 less than budget, representing a 9.3 percent unfavorable variance. Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 5.1 percent to 6.45 percent. The latest interest rate as of August 1997 was 5.75 percent. The average yield of the District's LAIF account was 5.67 percent. Following discussion of the Concord Sewer Service Charge, President Menesini declared that the August 1997 Financial Statements were duly received. a. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION REVIEW GENERAL MANAGER-CHIEF ENGINEER'S DECLARATION OF AN EMERGENCY ON SEPTEMBER 24. 1997 IN ORDER TO EFFECT REPAIRS TO 20 INCH PIPE IN MALTBY PUMPING STATION 10 02 97 242 Mr. James Kelly, Plant Operations Division Manager, stated that in July 1996 the Board of Directors adopted Resolution No. 96-107 which allows the General Manager-Chief Engineer to declare an emergency, but requires that staff report back to the Board at its next regularly scheduled meeting to give reasons justifying the declaration of emergency and reporting at each Board Meeting thereafter as to the status of the emergency and repair. Mr. Kelly described the Maltby pumping station which serves the City of Martinez. There are 28,000 people in Martinez. The average daily flow is 1.5 to 2 MGD, the peak daily flow is 3 MGD, and peak wet weather flow is upwards of 10 MGD. Mr. Kelly stated that a pipe failure at the Maltby Pumping Station about 8:30 a.m. on September 24, 1997 was found by Pumping Station Operator II Gary Riddle. Mr. Kelly showed slides of the pumping station, leak, and temporary repair. Mr. Riddle reported that little sewage had spilled when he discovered the leak. The failure was sudden and unexpected. Mr. Kelly reported that when Mr. Riddle found the leak, he turned down the speed of the pump. That kept sewage from spilling at the pump pit but stored sewage in the lines coming into the pumping station. A boom truck was required to take the heavy cover off the pipe pit to reach the leak. The pipe pit required confined space entry. The pipe in the pipe pit had failed due to corrosion; there was a one by two foot hole in the pipe. A patch of steel pipe was put in place by 10:00 p.m. by Collection System Operations (CSO) Department and Plant Operations Department crews, allowing about 5 to 6 MGD to be pumped to the Plant. This prevented any overflow in the Martinez area. Mr. Kelly stated that approximately $10,000 and about 300 hours of force account work have been expended to date. Approximately 30,000 gallons of sewage spilled in an area about ten feet wide and 300 feet long. Contra Costa County Health Department, Emergency Services, and the Regional Water Quality Control Board were notified. Mr. Kelly stated that a temporary fix is in place that will be adequate until a permanent repair can be done. The permanent repair must be made as soon as possible so it is in place before wet weather and the additional impacts expected from EI Niño occur. Mr. Kelly stated that for these reasons the declaration of emergency was appropriate, and he requested Board ratification of the declaration of emergency. Design of a permanent fix has been completed. Staff is now in the process of ordering two valves that will be added to isolate the system in the event of a future failure. Staff will inspect pipe pits in the pumping station and similar pumping stations once a year in the future. High quality corrosion protection will be provided for the new pipe once it is in place. At this time, the cost of the repair is estimated to be in the range of $75,000. Dalzell is the contractor working on the emergency repair on a time and materials basis. A good portion of the work is being done by District forces. Mr. Aim, Counsel for the District, stated that the General Manager-Chief Engineer declared an emergency because the sudden, unexpected occurrence at the Maltby pumping station posed a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property or,essential public services. Absent any action being taken, there was not sufficient capacity to pump sewage out of Martinez and there would have been overflows into the streets of Martinez or elsewhere along the Martinez system shortly thereafter. If normal bidding protocol would have been followed, it would have taken six to nine months from the date of discovery until the date the project was complete. Mr. Aim stated that essentially under the circumstances we have now, and clearly under the circumstances before the initial work was done, there was no assurance the pumping station could handle heavy winter flows from Martinez and therefore there was likely potential damage to public health and property. Based on the findings outlined above by District Counsel, it was moved by Member Nejedly and seconded by Member Hockett, that the Board of Directors determines that there is a need to continue with emergency action to effect repairs to the 20 inch pipe in the Maltby pumping station, and staff is authorized to proceed without giving notice for bids to let contracts. There being no objection, the motion was approved on the following vote: 10 02 97 243 AYES: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini NOES: Members: None ABSENT: Members: None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Boneysteele stated that on September 4, 1997 he proposed an action with regard to the District's Deferred Compensation Plan. Member Boneysteele stated that he may not have the correct understanding of the Board's responsibility in administration of the District's Deferred Compensation Plan and requested that District Counsel prepare instructions for the Board in that regard. Mr. Aim, Counsel for the District, stated that the District uses a Benefits Counsel who could provide that information. Mr. Dolan, General Manager-Chief Engineer, stated that Benefits Counsel will be asked to advise the Board on its oversight responsibility for the District's Deferred Compensation Plan. This matter will be calendared on a future Board Meeting agenda when that work has been completed. 14. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 5:42 p.m. -11n' 0 JJ(. ~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 10 02 97