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HomeMy WebLinkAboutBOARD MINUTES 10-21-04 I I I 71 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 21, 2004 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 21 , 2004. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Nejedly, Hockett, Lucey ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag led by Household Hazardous Waste Supervisor Elaine Jacobs. President Lucey asked that it be noted that the entire Board is pleased to see Ms. Jacobs at the Board Meeting. b. INTRODUCTIONS . INTRODUCE JAY NIGHTINGALE. NEWLY HIRED ENGINEERING ASSISTANT III CONSTRUCTION INSPECTOR Mr. Jay Nightingale, Engineering Assistant III (Construction Inspector) was introduced and welcomed to the District by President Lucey and the Board of Directors. . RECOGNIZE LILLY AMARGO ON HER PROMOTION TO SENIOR BUYER President Lucey and the Board of Directors congratulated Ms. Lilly Amargo on her recent promotion to Senior Buyer. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. and b., be approved as recommended and resolutions adopted as appropriate. a. The claim submitted by Mr. Tom Appelbaum was denied and staff was directed to send a rejection letter to the claimant. Motion unanimously approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett, Lucey NOES: Members: None ABSENT: Members: None 10-21-04 72 Resolution No. 2004-073 was adopted, authorizing Central Contra Costa Sanitary District participation in the State of California Department of General Services Reutilization Surplus Property Program, and authorizing the Purchasing and Materials Manager to complete the requisite application and supplemental paperwork. b. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Boneysteele, Hockett, Lucey I None None 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 9.a., Budget and Finance, was taken out of order later in the agenda. 5. REPORTS a. GENERAL MANAGER 1) 10-21-04 Mr. Charles W. Batts, General Manager, stated that the Household Hazardous Waste (HHW) Collection Facility has completed its seventh year of successful operation. Mr. Batts welcomed HHW Supervisor Elaine Jacobs back after an extended leave and thanked HHW staff for an excellent job keeping the operation efficiently running and in compliance during her absence. Ms. Elaine Jacobs, HHW Supervisor, presented and reviewed the HHW Collection Facility Annual Report for 2003-2004 that was distributed to the Board prior to the Board Meeting. Ms. Jacobs noted that 2003-2004 was yet another successful year in terms of participation and cost effectiveness. Participation statistics for 2003-2004 were as follows: I . 23,061 cars were served, representing 12.3 percent of the households in the Household Hazardous Waste Collection Facility service area All communities met the minimum participation goal of 4 percent, with the highest being Lafayette at 19.5 percent and the lowest being San Ramon at 5.0 percent (figures include mobile collection events) Operating expenses were $2,316,739 or $58 per car . . Ms. Jacobs noted that operating expenses have decreased in the last two years with the hiring of three new full-time staff in 2001-2002 and decrease in contract staffing resulting in a decrease in operating expenses of 31 percent this past year; and in 2002-2003 a new transportation and disposal contract was secured decreasing operating expenses 22.5 percent over the past year. . An average of 63 pounds of HHW was collected per car HHW disposal costs were $387,357 or $0.98 per pound 6,712 participants reused 67,601 items or an estimated 135,202 pounds for an estimated savings of $132,498 Combined recycling and reuse of 61 percent was up from 54 percent the previous year 2 temporary mobile collection events served 541 and 428 cars respectively There were 216 small business program appointments Small business revenue and the amount of waste increased 8.6 percent and 8.5 percent respectively I . . . . . . I I I 73 . $1,460 was collected from the $20 administrative fee implemented in March 2004 Ms. Jacobs stated that program wide participation continues to increase with nearly a 40 percent increase in participation since the program began seven years ago. Next year, temporary mobile collection events will be reduced to one HHW only event in San Ramon with no e-waste component. Outreach to small businesses will be continued. The mercury thermometer exchange program will continue. There is a plan for increasing waste streams for mercury containing lamps, household batteries, pharmaceuticals, dental wastes, and mercury containing thermostats. Continuous improvement review is ongoing to improve efficiency and cost effectiveness of operations. In the discussion that followed, Member Menesini asked if it would be possible to calculate the amount of pollutants taken out of the waste stream and how that amount correlates to helping the District meet its Regional Water Quality Control Board reporting and National Pollutant Discharge Elimination System (NPDES) permit requirements. Ms. Jacobs stated that HHW staff works closely with Source Control in tracking specific items that come through the HHW Collection Facility to give an accurate, detailed accounting of the types and amounts of waste that comes through the facility. Mr. James M. Kelly, Director of Operations, stated that materials that have a mass limit are carefully tracked for reporting to the regulators. President Lucey and the Board of Directors commended HHW Supervisor Elaine Jacobs and the entire HHW Collection Facility staff for their outstanding efforts that have resulted in the reduction in operating expenses and the cost effectiveness of the facility. 2) Mr. Batts, General Manager, stated that at the July 1, 2004 Board Meeting, staff presented an update on the high cost of energy, specifically natural gas. At that time staff anticipated that the portion of the natural gas still to be purchased for 2005 would be purchased in October when natural gas prices are historically lower. Unfortunately gas prices have continued to rise since July. Although prices have not dropped, staff now requests authorization to purchase natural gas for the remainder of 2005. This will protect the District from having to purchase natural gas during the winter months when it is anticipated that prices could rise even higher. Mr. Batts introduced Mr. Craig Mizutani, Associate Engineer, who provided an energy update. Mr. Mizutani stated that there was a slight drop in electric usage from the 2003-2004 Operations and Maintenance (O&M) Budget of $360,700 to $255,000 in the 2004-2005 O&M Budget, as opposed to the anticipated increase in natural gas costs from $1,951,000 in 2003-2004 to $2,244,500 in 2004-2005 and anticipated increase in landfill gas costs from $560,000 to $624,800 in the same time period. Mr. Mizutani stated that 60 percent of the natural gas for 2004-2005 has already been purchased from Coral Energy at a cost of $5.20 per decatherm, slightly below the budgeted amount of $5.34 per decatherm. To meet budget, future purchases of the remaining 40 percent of the natural gas must be at an average price of $5.56 per decatherm. At the July 1, 2004 Board Meeting, the price was $6.60 per decatherm and it was anticipated that natural gas prices would soften. Factors affecting the current natural gas price include weather, storage, global demand, and geo-political issues. The current price of natural gas is $7.44 per decatherm. Prices have not dropped as anticipated, but staff would recommend that the District lock in a price before the peak demand season approaches. Staff would request authorization to purchase the remaining gas, hopefully at a cost not to exceed $8.00 per decatherm, this would result in an estimated budget overrun of $400,000. 10-21-04 --. --_.._----- - -- -..-.- .-----.---.....---- ----------.----..---- -----_.__.-.__. 74 In the discussion that followed, it was noted that the funds to cover the estimated budget overrun would come from savings in other areas and the O&M Budget contingency if necessary. Member Menesini stated that additional information on treatment plant operating expenses was requested at the Budget and Finance Committee meeting, and a report will be made at a future meeting. 3) Mr. Batts, General Manager, reported that last month the District was informed by its polymer supplier, Polydyne, that as of mid-December Polydyne can no longer supply the District with polymer. Polydyne is not renewing the lease on its Pittsburg production facility and will ship future polymer orders from southern California. Polydyne plans to discontinue production of the type of polymer used at the District treatment plant when its supply of raw materials runs out in December. District staff has contacted more than ten other polymer suppliers and has tested several products in the sludge dewatering process. Only a few have shown any promise. Staff is continuing the testing. There is a worldwide shortage of acrylic acid, which is one of the ingredients in many of the polymers in use today. It is expected that the price of polymer will go up by at least 30 percent. The District currently spends approximately $350,000 annually for polymer. I 4) Mr. Batts, General Manager, announced that the District's United Way/Community Health Charities campaign kicks off on November 3rd with the annual District breakfast. Breakfast will be served starting at 7:00 a.m. and all Board Members are cordially invited to share in the festivities. There will be a speaker from Community Health Charities. District staff will provide music, cook food, and provide another year of generous support for local charities. 5) Mr. Batts, General Manager, reported that the Contra Costa County Zoning Administrator will be conducting a public hearing on the Final Environmental Impact Report (EIR) for the 23-lot Alhambra Valley Estates project next Tuesday evening, October 26, 2004, at 7:00 p.m. at the County Administration Building in downtown Martinez. County staff will be recommending certification of the EIR and approval of the project. With regard to wastewater service, annexation to Central Contra Costa Sanitary District is a proposed condition of approval. At the September 2, 2004 Board Meeting, the District Board approved funding for design of a trunk sewer to serve the Alhambra Valley area, including the proposed subdivision. The developers have pledged a significant financial contribution toward construction of a trunk sewer if the County approves the project. District staff will be present at the October 26 public hearing to respond to any questions. I 6) Mr. Batts, General Manager, reported that recently a fire in a transformer at the PG&E substation on Estero Drive in San Ramon shut down the electricity in parts of San Ramon and at the San Ramon Pumping Station. The fire occurred a little before 8:00 a.m. on Saturday, October 16, 2004. The power outage alarm was sent to the treatment plant and the emergency generator went on at the San Ramon Pumping Station as designed. Pumping Stations Operator Steve Grubka responded within 40 minutes to check the pumping station. Mr. Grubka stayed until PG&E service was restored at about 10:00 a.m. Some residents were gathered in front of the pumping station when Mr. Grubka arrived. They asked how much fuel was on hand for the generator. After checking, Mr. Grubka reported to them that there was enough fuel to power the emergency generator for about one and a half days. I President Lucey stated that it is nice to see the systems working the way they are designed to work. 1 0-21-04 I I I 75 7) Mr. Batts, General Manager, reported that the Contra Costa County Community Development Department has requested District comments on a proposed General Plan amendment for an 80-acre parcel located just northwest of the treatment plant, off Central Avenue, in the Vine Hill area of unincorporated Martinez. The General Plan amendment would change the site's land use designation from "Heavy Industrial" to "Single-Family High." The applicant is Vinehillinvestments and its President is Boyd Olney. Following annexation, wastewater service to the project would be provided by Mt. View Sanitary District since the property is within Mt. View's Sphere of Influence. As a nearby property owner, the District still should be concerned about a proposal to take Heavy Industrial land, which is compatible with the treatment plant and Maltby Pumping Station operations, and convert it to a residential use, which is less compatible. Residences would be much more sensitive to odors, dust, and noise associated with District existing and future operations, as well as other nearby, heavy industrial uses including the planned trucking and rail projects just to the east of the project site. Staff plans to express these concerns to the County and will continue to monitor this project. 8) Mr. Batts, General Manager, reported that the City of San Ramon is preparing the Northwest Specific Plan and Environmental Impact Report (EIR) for approximately 350 acres of largely undeveloped land adjacent to the existing San Ramon City limits on the east and west sides of Bollinger Canyon Road, North of Crow Canyon Road. All the properties are within the City of San Ramon Urban Growth Boundary, but outside the current City limits. About 300 acres are outside the County Urban Limit Line. The City, the County, and the property owners are working to make the City's Urban Growth Boundary and the County Urban Limit Line co-terminus. The City anticipates that about 830 residential units could be built in the Northwest Specific Plan area. Central Contra Costa Sanitary District is the nearest wastewater agency and could serve the project area by gravity. Much of the Northwest Specific Plan area is outside the District's Sphere of Influence, and the Local Agency Formation Commission (LAFCO) would have to approve a Sphere of Influence change and annexation. District staff is reviewing the impacts of future developments in the area, and has identified a number of collection system improvements for future developers to undertake. The City's consultants have been notified of the District's service requirements. In the discussion that followed, Member Nejedly requested that staff monitor the City and County votes on annexation and changing boundary lines, noting that when the Dougherty Valley development occurred, the District was criticized for creating the problems in Dougherty Valley when in fact it was the Board of Supervisors and City Council that voted for the annexations and not the District. The District simply provides service when such developments are approved. It was the consensus of the Board, that the District take no position on the Northwest Pacific Plan at this time. Mr. Kenton L. Aim, Counsel for the District, stated that typically the District would send a neutral "will serve" letter that states that the District can serve based on certain conditions including treatment plant capacity. Noting the presence of Mr. A. J. Majors, of Vavrinek, Trine, Day & Co., President Lucey proceeded to Item 9.a., Budget and Finance. 1 0-21-04 76 9. BUDGET AND FINANCE a. RECEIVE AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30. 2004 Mr. Batts, General Manager, stated that the external audit firm of Vavrinek, Trine, Day & Co. has completed its report on the results of the District's financial audit for fiscal year 2003-2004. This was a clean audit with no recommendations for improvements in internal controls. Mr. A. J. Majors, the partner on the engagement, met with the District Board's Budget and Finance Committee on October 18, 2004 and reviewed the report in detail. Mr. Batts introduced Mr. A. J. Majors, of Vavrinek, Trine, Day & Co., who reviewed the District's audited financial statements for the fiscal year ended June 30, 2004. As part of the routine examination of the District's financial statements, the District's internal accounting controls are reviewed to determine the nature and extent of recommendations for improvements that may be warranted. Mr. Majors stated that this year there were no recommendations for changes or improvements. Internal controls are operating as designed and are adequate to safeguard District assets. From the financial statements and compliance side, a clean opinion was issued which means that the results of operations for the fiscal year ending June 30, 2004 were accurate as provided. The format of the financial statements has changed in recent years. In the new. reporting model there is a Management Discussion and Analysis element at the beginning that summarizes and highlights financial facts for the fiscal year. Mr. Majors stated that the District continues to be financially healthy. All basic financial ratios including current assets to current liabilities, debt to equity, and operational ratios show the District to be in a very healthy position. The District's unrestricted funds continue to be at a healthy percentage compared to operating expenses, and District management is diligent in ensuring that those funds are retained to address specific District needs. In response to questions from President Lucey, Mr. Majors stated that while projections are outside the scope of the auditors' work, auditors do consider and analyze restricted funds; and in the area of unrestricted funds consider such things as the District's Capital Improvement Program. Mr. Majors stated that compared to other agencies, when considering a 30 to 40 year timeline, the District is in a good financial position and has a sound rational for retaining unrestricted funds. There being no further comments, President Lucey declared that the Audited Financial Statements for the Fiscal Year ended June 30,2004 were duly received. At this time, President Lucey reverted to the order of the agenda. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1) Member Nejedly and President Lucey distributed and reviewed notes from the October 14, 2004 Personnel Committee meeting at which authorization was given to fill vacant Senior Engineer (Capital Projects) and vacant Maintenance Crew Member" positions; and the General Manager was authorized to review and recruit for vacant, budgeted positions as necessary, reporting to the Personnel Committee prior to making the final job offer. 2) Member Menesini reported on the October 18, 2004 Contra Costa Special Districts Association (CCSDA) meeting at which the featured speaker was 10-21-04 I I I I I I 77 Guy Houston. Other highlights of the meeting included discussion of current issues and happenings at other agencies, legislative issues, CCSDA financial status, preparation of a CCSDA membership directory, and a Local Agency Formation Commission (LAFCO) update. It was noted that Members Menesini and Nejedly will attend the LAFCO workshop on December 1, 2004. 3) President Lucey and Member Nejedly distributed and reviewed notes from the October 19, 2004 Real Estate Committee meeting at which the Town of Danville property sale, the Lagiss property development proposal, the Kiewit property fill plan and schedule, and the Contra Costa Water District alum pond lease were topics of discussion. 4) Member Nejedly noted that the Central Contra Costa Solid Waste Authority (CCCSWA) has approached the District about using the Animal Services Facility for electronic waste collection when the County vacates the premises. Member Nejedly stated that the District does not know when the Animal Services Facility will be vacant or what uses the District may have for the property. Member Boneysteele, Chair of the Budget and Finance Committee, reported that he and Member Menesini met with staff and Mr. A. J. Majors, of Vavrinek, Trine, Day & Co. Mr. Majors reviewed and answered questions concerning the District's Audited Financial Statements for Fiscal Year ended June 30, 2004. Other topics of discussion included a report on the arbitrage rebate. This year the District will receive a refund of $21,000. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated October 21,2004, including Self Insurance Check Nos. 102154-102162, Running Expense Check Nos. 152208-152622, Sewer Construction Check Nos. 27074-27142, Payroll Manual Check Nos. 48998-49005, and Payroll Regular Check Nos. 55197-55233, be approved as recommended. There being no objection, the motion was unanimously approved. 5) Member Menesini reported that the October 18, 2004 Environmental Alliance Discussion Series featured Ms. Mary Brown, Senior Project Manager for Rhodia Inc., discussing the Peyton Slough Remediation Project. 6) President Lucey announced that he has asked staff to make coffee available for staff and the audience at future Board Meetings. a. 6. ADMINISTRATIVE CONSIDER ADOPTION OF A RESOLUTION APPROVING AND CONSENTING TO THE DESTRUCTION OF RECORDINGS OF DISTRICT BOARD MEETINGS Mr. Batts, General Manager, stated that with the installation of the digital recording system in the Board Meeting Room, it is appropriate for the Board to consider the appropriate retention period for the recordings. Presently the final minutes approved by the Board serve as the official permanent record of District Board Meeting proceedings, and the shorthand notes used in preparing the minutes are destroyed in accordance with the District's Records Retention Program. It is proposed that the recordings be classified in the same category and destroyed 30 days after the recording or as soon thereafter as the Board of Directors approves the final minutes in accordance with the District's Records Retention Schedule and the Brown Act. It was moved by Member Menesini and seconded by President Lucey, that Resolution No. 2004-074 be adopted, approving and consenting to destruction of recordings of District Board Meetings 30 days after the recording or as soon thereafter as the final 10-21-04' 78 minutes of the Board Meeting are approved. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly None None 7. ENGINEERING a. ADOPT RESOLUTION ACCEPTING A GRANT OF EASEMENT FROM SHAPELL INDUSTRIES, INC. AND PUBLIC SEWER IMPROVEMENTS FROM WINDEMERE BLC LAND COMPANY FOR THE ALAMO CREEK BRIDGE AND TRUNK SEWERS AT THE DOUGHERTY VALLEY TUNNEL EAST PORTAL: AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN "INDEMNITY AND HOLD HARMLESS AGREEMENT" REGARDING CONSTRUCTION. OPERATIONS. AND MAINTENANCE OF THE BRIDGE AND TRUNK SEWERS DISTRICT JOB 5474 - PARCEL 1 Mr. Batts, General Manager, stated that in 1993 the District and the Dougherty Valley developers agreed that sewer service to the valley would be provided via a tunnel and trunk sewer system to the San Ramon Pumping Station. As part of the agreement, the District designed and built the tunnel and the trunk between the tunnel and the improvements of the pumping station with reimbursement from the developers, and the developers built the sewer system upstream including bridges across Alamo Creek and contributed those facilities to the District. Shapell agreed to provide the easements needed for the Alamo Creek Bridge and trunk sewers near the Tunnel East Portal. It is recommended that the District accept a Grant of Easement from Shapell, accept the bridge and trunk sewers, and authorize the General Manager to execute an indemnity agreement requested by Shapell during negotiations for the easements. It was moved by President Lucey and seconded by Member Hockett, that a Grant of Easement be accepted from Shapellindustries, Inc.; that public sewer improvements be accepted from Windemere BLC Land Company for the Alamo Creek Bridge and trunk sewers at the Dougherty Valley Tunnel East Portal; that the General Manager be authorized to execute an "Indemnity and Hold Harmless Agreement" with Shapell for claims arising from construction, operations, and maintenance of the bridge and trunk sewers (Job 5474, Parcel 1); and that Resolution No. 2004-075 be adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Menesini, Boneysteele, Nejedly None None b. APPROVE AN INCREASE IN THE COST CEILING OF THE CONSULTING SERVICES AGREEMENT FOR RIGHT-OF-WAY CONSULTING SERVICES WITH CROSSROADS RIW, INC. - AGREEMENT NO. 027192TC Mr. Batts, General Manager, stated that current and proposed collection system renovation projects have created a high demand for right-of-way services. Additionally, there have been a number of recent real property issues affecting District facilities and property. Staff is requested that the Board authorize an increase in the cost ceiling of the right-of-way consulting services agreement with Crossroads RIW, Inc. This firm was selected through a Request for Proposals (RFP) process in January 2003. Following discussion of the competitive process used, it was moved by Member Menesini and seconded by Member Hockett, that the General Manager be authorized to approve an amendment to existing Agreement No. 027192TC with Crossroads RIW, 1 0-21-04 I I I I I I 79 Inc., to increase the cost ceiling from $50,000 to $100,000. There being no objection, the motion was unanimously approved. c. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH RAINES MELTON & CARELLA INC. RMC FOR THE CONCORD INDUSTRIAL AND CLYDE PUMPING STATIONS TRANSMISSION LINE CORROSION STUDY, DP 5922 Mr. Batts, General Manager, stated that the collection system contains approximately 72 miles of large diameter reinforced concrete pipe. During 2001 and 2002, selected reaches of this type of pipe believed to be most at risk were televised. Based on the findings, a new project was initiated in 2002 to investigate ways of controlling corrosion damage. The first step was to conduct an extensive condition assessment. With large pipe replacement costing hundreds of dollars per foot, the condition assessment information and recommendations for protection of the sewer will be a very small investment compared to the value of this asset. Having previously requested to be excused, Member Nejedly apologized to Dr. Chesler and left the meeting at the hour of 3:21 p.m. Mr. Batts introduced Dr. Gail Chesler, Associate Engineer, who stated that the District's Collection System Corrosion Evaluation, DP 4988, found significant hydrogen sulfide induced corrosion in concrete pipe. Some pipe at risk was downstream of pumping station force mains. Chemicals are added at some pumping stations to control hydrogen sulfide. Five (Lower Orinda, San Ramon, Martinez, Fairview, Maltby) of the eight major pumping stations have been evaluated. There are three remaining studies to be done, one of which is the proposed Concord Industrial and Clyde Pumping Station Transmission Line Corrosion Study. Following that will be studies of the Moraga and Orinda Crossroads Pumping Stations. The Concord Industrial and Clyde Pumping Stations system includes the two small pumping stations, 4.1 miles of pipe, and 47 concrete manholes. The 4.1 miles of pipe consists of 1.4 miles of force main, 2.7 total miles of gravity sewer, and 1.5 miles of corrodible gravity sewer. Dr. Chesler showed photographs and described the Concord Industrial and Clyde Pumping Stations, the Supervisory Control and Data Acquisition (SCADA) system, and wet well. Discussion followed with regard to flow and/or infiltration from the Concord Naval Weapons Stations into this pumping station system. Dr. Chesler stated that the Concord Industrial Pumping Station may be replaced in the 2006-2008 timeframe. One of the purposes of this study is to evaluate corrosion control needs for that design. The primary goals are to conduct a condition assessment, to recommend pipe repair projects if necessary, and to develop a program to minimize hydrogen sulfide corrosion including possible operational changes and chemical treatment. Dr. Chesler stated that Raines, Melton & Carella, Inc. (RMC) was selected using a competitive process. RMC will perform the condition assessment including inspection of manholes and CCTV inspection of approximately 2,000 feet of pipeline, recommend chemicals and dosages for Clyde and Concord Industrial Pumping Stations, and provide a technical report detailing existing corrosion and corrosion control recommendations. Following discussion, it was moved by Member Hockett and seconded by Member Menesini, that the General Manager be authorized to execute an agreement for an amount not to exceed $62,000 with Raines, Melton & Carella, Inc. for the Concord Industrial and Clyde Pumping Stations Transmission Line Corrosion Study. There being no objection, the motion was approved with Member Nejedly being absent. d. ADOPT A RESOLUTION APPROVING A DENTAL INVENTORY PROGRAM Mr. Batts, General Manager, stated that on July 15, 2004, the Board authorized staff to proceed with a dental inventory program that is intended to identify the potential sources of mercury discharges from dental offices to the District sewer system and the practices 1 0-21-04 80 that these dental offices are using to control these discharges. Staff indicated they would return with a proposal about any fees associated with the inventory program. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that over the past few years the District has focused some of its pollution prevention efforts on controlling sources of mercury into the District sewer system. Household Hazardous Waste (HHW) Supervisor Elaine Jacobs described some of the efforts undertaken by the HHW Collection Facility earlier in the meeting. Because over 50 percent of the mercury into the District sewer system comes from dental operations, staff has been developing a program to try to understand and control the amount of dental mercury entering the system. An informational letter was sent to approximately 700 dentists and dental offices within the District service area advising them of the upcoming inventory program. There were 114 requests for exemption received. Currently staff is evaluating the exemption requests and preparing an inventory packet. In addition to the letters and packets, informational meetings and workshops will be held. Staff would propose that there not be a charge associated with the mandatory dental inventory provided that the dental offices complete and return the inventory forms. If the inventory forms are not submitted, the District will make efforts to obtain the inventory. If the inventory forms are not received after reasonable attempts have been made, District staff will proceed to issue Class III Industrial User permits. The annual charge for a Class III Industrial User permit is currently $351. Staff has reviewed the District Code and concluded that the proposed fees can be imposed without the need to revise the District Code. Member Hockett thanked staff for revising the letter, stating that it is much improved. Member Hockett questioned the source of the determination that 50 percent of the mercury coming into the District system is from dental mercury. Mr. Swanson stated that the figure was based on a study done by the District a number of years ago, on the sources of mercury entering the District system based on sampling, review of literature and information from other communities on their sources of mercury. President Lucey requested that, with Member Menesini's permission, the informational packet be reviewed by the Board Outreach Committee before it is sent out to the dentists. Member Menesini stated that the Board Outreach Committee would be happy to review the information. Following discussion, it was moved by Member Menesini and seconded by Member Boneysteele, that Resolution No. 2004-076 be adopted, approving and implementing a Dental Inventory Program. Motion approved on the following vote: AYES: Members: Menesini, Boneysteele, Hockett NOES: Members: Lucey ABSENT: Members: Nejedly 8. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 16, 2004 It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of September 16, 2004 be approved as presented. There being no objection, the motion was approved with Member Nejedly being absent. 9. BUDGET AND FINANCE a. RECEIVE AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2004 This item was taken out of order earlier in the agenda. 1 0-21-04 I I I I I I 81 b. REPORT ON ARBITRAGE REBATE Ms. Deborah Ratcliff, Controller, stated that the Internal Revenue Service (IRS) requires public agencies to perform an arbitrage calculation every five years on each outstanding debt issuance. The purpose of this calculation is to ensure that agencies are not borrowing money and reinvesting it at higher rates for the specific purpose of producing a profit. Muni Financial, a firm that specializes in arbitrage calculations, was used to perform the computation. This was the final calculation on 1994 Certificates of Participation, and $21,000 will be refunded to the District. The 1994 Certificates of Participation had a ten-year call date and were called in September 2004. The 1994 issue was refunded in 1998. The District will continue to perform this calculation on the 1998 and 2002 issues. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Menesini requested a report on the costs associated with operation of the District treatment plant. Member Hockett requested on update on Collection System Operations (CSO) Division activities. President Lucey announced that he will be attending Contra Costa County Employees Retirement Association (CCCERA) Board Meetings in the future. 12. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 3:48 p.m. r si ent 0 he Board of Direc rs, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secr t f the Central tra osta Sani District, County of Con ra Costa, State of California 10-21-04