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HomeMy WebLinkAboutBOARD MINUTES 06-17-93 135 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 1 7, 1 993 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 3:06 p.m. on June 17, 1993. President Clausen called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Dalton, Hockett, Rainey, Clausen ABSENT: Members: None 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Rainey and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. A Grant of Easement was accepted from Jerry A. Katopodis and Linda A. Katopodis at a cost of $18,250, the President of the District Board of Directors and the Secretary of the District were authorized to accept and record said Grant of Easement, and Resolution No. 93-057 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None b. The Agreement Relating to Real Property with David B. Taylor, et ux, Job 3901, was approved, the President of the Board of Directors and the Secretary of the District were authorized to execute and record said Agreement, and Resolution No. 93-058 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None c. The board was advised of the close out of 19 capital improvement projects with a net underrun of $133,229, approximately 1 percent of the total authorized budgets for these projects. This item was presented for the Board's information. No action was taken. d. Medical Leave Without Pay was authorized for Dennis Almond, Maintenance Crew Member II, through July 15, 1993. 06 17 93 136 Motion unanimously approved on the following vote: AYES: Members: Rainey, Hockett, Menesini, Dalton, Clausen NOES: Members: None ABSENT: Members: None 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None a. 5. BIDS AND AWARDS REJECT ALL BIDS SUBMITTED FOR THE CONSTRUCTION OF DISTRICT PROJECT 30023. COLLECTION SYSTEM OPERATIONS DEPARTMENT FACILITY RECONFIGURA TION PROJECT Mr. Roger J. Dolan, General Manager-Chief Engineer, stated that the low bid for the Collection System Operations Department Facility Reconfiguration Project came in 13 percent over the Engineer's Estimate. The remaining budget for the project after expenditures for planning, design and other pre-bid activities will not cover the construction contract and other related costs for the project. Staff recommends that all bids be rejected and that staff work with the architect to delete items and redesign the project to reduce the construction cost prior to rebidding the project. Following discussion of the need to keep Caltrans apprised of the status of the project and in agreement with any revisions, it was moved by Member Rainey and seconded by Member Hockett, that all bids for construction of DP 30023, Collection System Operations Department Facility Reconfiguration Project, be rejected and that the project be referred back to staff for redesign and recalculation. There being no objection, the motion was unanimously approved. 6. PERSONNEL ADOPT RESOLUTION AUTHORIZING EARLY RETIREMENT SERVICE CREDIT a. Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Kenton L. Aim, Counsel for the District, to explain a minor but important complication in the procedure. Mr. Aim stated that in reviewing the appropriate code sections, it appears that there is a three stage process that must be implemented. Since the District is part of the County Retirement Program, the County must pass an ordinance allowing early retirement service credits. That has occurred. Then the District must adopt such an ordinance enabling the District to participate in that program. Then from time to time when the District wishes to grant service credits, a resolution must be adopted. The District has not adopted the required ordinance and would have to do so at the next Board Meeting prior to adoption of the resolution if the District wishes to offer such a program. The resolution would be effective upon the effective date of the ordinance, one week after publication. It would be appropriate at this time for the Board to provide policy guidance to staff as to how to proceed. President Clausen indicated that he would like to look at the impact on the District of providing an incentive to retire and asked if the law would allow imposition of different criteria relative to age and years of service rather than the minimum criteria of 50 years of age with ten years of service. Mr. Dolan stated that Personnel has reviewed the records of the last seven years and determined that the average age at retirement has been 57 with an average term of service of 16 years at the time of retirement. During that period, only three employees have retired after the age of 60. Mr. Dolan stated that the District's labor counsel has cautioned against any appearance of age discrimination and has recommended that if the Board decided to provide early retirement service credits, that the program be made available to everyone who meets the minimum qualifications. Mr. Dolan stated that staff will review President Clausen's question with labor counsel and report back to the Board. 06 17 93 137 Mr. Dolan introduced Ms. Deborah Ratcliff, Controller, who reviewed the calculations of estimated cost savings for Fiscal Years 1993-1994 and 1-994-1995 with regard to various alternatives estimating the number of retirements and the number of positions that would be refilled using retirement dates of September 1, 1 993 and January 1, 1 994. On the average, it costs approximately $2,000 more per person per quarter if implementation of the program is delayed after September 1, 1993. Member Rainey stated that the Personnel Committee reviewed this matter and because of the potential savings to the District, felt that the program should be considered by the full Board. Member Rainey stated that if the Board decides to offer early retirement service credits, she would be opposed to rehiring these employees as consultants. Mr. Dolan stated that the additional information requested by the Board will be presented at the next Board Meeting. Mr. Dolan stated further that one of the factors motivating staff is keeping operating costs down for a number of years. With the implementation of the Ultraviolet (UV) Disinfection Project, the Plant Operations Department has an opportunity to lighten staffing. If an early retirement service credit program is offered and employees in that department take advantage of early retirement service credits, it may be necessary to hire temporary people in the Plant for a period of time until the UV Disinfection Project comes on line. In response to a question from Member Dalton, Mr. Dolan stated that the costs of salaries are included in the replacement cost calculation, but the cost of training was not included. President Clausen thanked staff for the information and indicated that this matter will be considered further at the July 1, 1993 Board Meeting. 7. APPROVAL OF MINUTES MINUTES OF JUNE 3. 1993 a. Following discussion of the Facilities Capacity Fee based on the cost of buying capacity in the existing system, it was moved by Member Hockett and seconded by Member Rainey that the minutes of June 3, 1993, be approved as presented. There being no objection, the motion was unanimously approved. 8. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED JUNE 1 7. 1 993 a. Member Menesini, member of the Budget and Finance Committee, stated that he and Member Hockett reviewed the expenditures and found them to be satisfactory. Member Menesini requested that additional information be provided with regard to expenditures, particularly those at or near the $1 million level. It was moved by Member Menesini and seconded by Member Hockett, that the Expenditure List dated June 17, 1993, including Self-Insurance Check Nos. 100693- 100697, Running Expense Check Nos. 75783-75954, and Sewer Construction Check Nos. 12596-12644, be approved as recommended. There being no objection, the motion was unanimously approved. 9. BUDGET AND FINANCE a. APPROVE A BOARD RESOLUTION TO ADOPT THE 1993-1994 PERSONNEL. EQUIPMENT. CAPITAL IMPROVEMENT. OPEBðJl0NS AND MAlW"ENAN~. AND SELF-INSURANCE FUND BUDGETS AS COMPRISING THE 1993-1994 DISTRICT BUDGET It was moved by Member Dalton and seconded by Member Menesini, that Resolution No. 93-059 be adopted, adopting the 1993-1994 Personnel, Equipment, Capital Improvement, Operations and Maintenance, and Self-Insurance Fund Budgets as comprising the 1993- 1994 District Budget. Motion unanimously approved on the following roll call vote: 06 17 93 138 AYES: Members: Dalton, Menesini, Hockett, Rainey, Clausen NOES: Members: None ABSENT: Members: None b. RECEIVE MAY 1993 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance expenditures for the month of May 1993, noting that expenditures were $144,000 less than budget, representing a 6.4 percent favorable variance. For the eleven months ended May 1993, expenditures were $1.3 million less than budget, representing a 5.2 percent favorable variance. Revenues were $1.8 million less than budget, representing a 6.6 percent shortfall. 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 2.7 percent to 6.2 percent. The latest interest rate was 3.875 percent. The average yield for the District's LAIF account was 4.6 percent at April 30, 1993. Mr. Dolan, General Manager-Chief Engineer, introduced Mr. Jay S. McCoy, Infrastructure Division Manager, who reported on the Cured-in-Place Liner Project. The project involved three sites: Near Court in Walnut Creek, Orchard Road in Orinda, and Sleepy Hollow Lane in Orinda. Mr. McCoy described the somewhat special and complicated work on Near Court between two apartments buildings with only a 12-foot clearance between the buildings and restricted vertical clearance. It was determined that the cured-in-place technology was appropriate for this work. Mr. McCoy introduced Mr. Henry Thom, Senior Engineer, who described the cured-in- place process and showed slides of the work on Near Court, Orchard Road, and Sleepy Hollow Lane. Mr. Thom stated that this was a joint project with the Collection System Operations Department and the Engineering Department. The original bid for the work was $768,000. Staff successfully negotiated with the contractor, reducing three items and reducing the final construction contract amount to $555,500. The total project cost was $700,000. The work in these difficult-to-access areas has been completed on schedule and compliments have been received from some of the residents. Mr. Thom presented a comparison of the costs of the cured-in-place technology to other technologies, noting that although the cured-in-place technology was slightly more expensive, the terrain and position of the buildings made other technologies impossible. Discussion followed concerning reduction in capacity resulting from the cured-in-place technology and TV testing of the lines to ensure that flaws in curing have not occurred. The Board thanked staff for the interesting and informative presentation. President Clausen declared that the May 1993 Financial Statements were duly received. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. REPORTS a. GENERAL MANAGER-CHIEF ENGINEER 1) Mr. Dolan, General Manager-Chief Engineer, stated that a Strategic Planning session has been scheduled for Tuesday, June 22, 1993. In order to make the session as productive as possible, staff has taken advantage of the work done by the managers up to this point including development of a series of goals dealing with regulatory compliance, cost reduction, solid waste, management/employee involvement and effectiveness, and efforts to achieve public support for District programs. 06 17 93 139 In the context of the management/employee involvement and effectiveness goal, Mr. Dolan described his involvement in a Total Quality Management effort through the Water Environment Federation. Mr. Dolan stated that the Collection System Operations Department (CSOD) has been working on a Total Quality Management process called Work Redesign. Mr. Dolan introduced Mr. John A. Larson, Collection System Operations Department Manager, who provided an overview of the Work Redesign work done by CSOD. Mr. Larson stated that because a time could be foreseen when resources would be limited and because of a commitment to improve quality, CSOD embarked on the Work Resign process. Work Redesign is best done by those who know and do the work. Work flow is examined for breakdowns and bottlenecks. When a problem is identified, a task force is chartered to focus on the problem. Value should be added at each step in the work flow. If value is not added, the step can be eliminated with cost and time savings. The management organization then implements recommendations and works with the people to improve the work flow based on the feedback received. Mr. Larson stated that CSOD has been working on Work Redesign for the past two years. Just-in-time training has been provided for the people involved. Over the last two years, $144,000 has been spent on staff time and consultants for Work Redesign. Efforts have focused on maintenance scheduling reducing errors and travel time, development of a feedback system for complaints improving the quality of service provided to the public, and a number of other areas. Steps have just begun on a significant effort to improve employee effectiveness to accommodate future reductions in staffing. Much of the work is not yet complete, but CSOD staff is now self-sufficient and proceeding without the assistance of outside consultants. Member Hockett asked how the benefit to employees will be measured and evaluated in terms of positive employee feelings and satisfaction. Mr. Larson stated that employees will be involved in the implementation stages of system improvements and the credit will flow directly to them. That is the emphasis of the Work Redesign process. Member Menesini complimented Mr. Larson on the program, stating that the transition to having people take responsibility for their own decisions is sometimes difficult both for employees and management. 2) Mr. Dolan, General Manager-Chief Engineer, stated that when the City of Martinez was annexed to the District in the late 1960's, the City agreed to provide easements for the pipelines that were not built in the streets. In hilly terrain, it was common to build streets horizontally across slopes, and run drainage and sewer lines directly down the slopes. That practice is now prohibited wherever possible because of the difficulty of working in backyards. In an old system such as Martinez, there are many of these easement lines. The easements are needed to give the District the legal right to own, maintain, or reconstruct the lines on private property. The City of Martinez has never refused to comply with the requirement to provide easements, but few easements have been provided over the years. Recently Board Members Menesini and Dalton and District staff met with representatives of the City of Martinez in an effort to resolve this issue. Mr. Dolan introduced Mr. Jay S. McCoy, Infrastructure Division Manager, who stated that the main purpose of the meeting was to open lines of communication. At the meeting a proposed program was outlined that hopefully will result in the District obtaining the necessary easements. Grants of easement will be drafted and presented to property owners with an offer to purchase the easements. Declarations of Easement will be drafted in those cases where property owners fail to accept the offer. Property owners will be advised; a hearing will be held; and assuming there are few or no protests, Declarations of Easement will be filed. Five years after obtaining the easements, a quiet title action will be filed. Mr. McCoy described the location of the easements and stated that a map and draft resolution will be sent to the City of Martinez supporting this 06 17 93 ------------ 140 3) 4) approach and program. The draft resolution will be brought back to the Board for review before it is sent to the City. Mr. McCoy stated that the issue of payment is covered in the agreement between the City of Martinez and the District. The District will obtain the easements but the City will pay the costs. Because the City is experiencing budgetary constraints, every effort is being made to minimize the cost of this process. Mr. Dolan, General Manager-Chief Engineer, stated that the issue of participation in outside organizations was brought up at a previous Board Meeting and a summary of organizational memberships was presented to the Board. The Board has now had an opportunity to review that list and staff is prepared to cancel any memberships as directed by the Board. Following discussion, it was agreed that memberships in Contra Costa Council and the Association of Bay Area Governments (ABAG) will be retained, but memberships in the American Management Association (AMA) and Water Quality 2000 will be dropped. Mr. Dolan announced that Mr. Charles W. Batts, Plant Operations Department Manager, will be attending a Water Environment Research Federation meeting in Boston later in the month. Mr. Batts is the Chair of the Electrotechnologies Committee and a member of the (electrical power) Demand Side Management Committee. He will be working with both committees in Boston. The Electric Power Research Institute will pay Mr. Batts' travel expenses. 2. COUNSEL FOR THE DISTRICT None 3. SECRETARY OF THE DISTRICT None 4. BOARD MEMBERS None 12. ANNOUNCEMENTS Member Dalton announced that he will be in the hospital and unable to attend the June 22, 1993 Strategic Planning session. Member Dalton requested that he be excused and that he be provided with a record of the meeting. Mr. Dolan stated that copies of the flip charts recording comments of the participants will be provided. None None 06 17 13. CLOSED SESSION 14. ACTIONS RESULTING FROM DISCUSSIONS IN CLOSED SESSION 93 141 1 5. ADJOURNMENT There being no further business to come before the Board, President Clausen adjourned the meeting at the hour of 5:09 p.m. to reconvene at 8:00 a.m. on Tuesday, June 22, 1993, at the John Muir Inn, 445 Muir Station Road, Martinez, California, for a strategic planning workshop. /~~~ / Presiden f the Board of Directors, Cðntr Contra Costa Sanitary District, éounty of Contra Costa, State of California ( COUNTERSIGNED: $e et ry of the Central C ntra C sta Sanitary District, County of Contra Costa, State of California 06 17 93