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HomeMy WebLinkAboutBOARD MINUTES 05-15-08 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 15, 2008 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, May 15, 2008. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett (arrived 2:22 p.m.), McGill (arrived 2:12 p.m.), Menesini, Nejedly, Lucey ABSENT: Membern: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Board Members welcomed newly-hired Secretary III Nancy Parker and new summer student Engineer Ellen Quigley. 2. PUBLIC COMMENTS President Lucey presented a plaque to Bill Wygal of Bill's Ace Hardware in appreciation of his pollution prevention efforts at his Ace Hardware store. 3. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Menesini, Nejedly, Lucey None Hockett, McGill a. Approve expenditures dated May 15, 2008. Reviewed by Budget and Finance Committee. b. Approve minutes of April 10, 2008 and April 17, 2008 Board Meetings. Book 57 - Page 178 Board Minutes of May 15, 2008 c. Adopt Resolution 2008-051 establishing June 19, 2008 as the date for a public hearing to consider the establishment of Quail Alhambra Valley Assessment District No. 2007-6, pursuant to California Constitution, Article XIII D, Section 4 and Streets and Highway Code, Sections 5898.20 and 5898.24. d. Adopt Resolution 2008-052 establishing June 19, 2008 as the date for a public hearing to consider the establishment of Trunk Sewer Alhambra Valley Assessment District No. 2007-1, pursuant to California Constitution, Article XIII D, Section 4 and Streets and Highway Code, Sections 5898.20 and 5898.24. e. Deny appeal and adopt the arbitrator's recommendation in the disciplinary matter of Mechanical Maintenance Technician III Mark Lafferty. 4. HEARINGS a. CONDUCT A PUBLIC HEARING REGARDING THE ESTABLISHMENT OF THE RELlEZ VALLEY ALHAMBRA VALLEY ASSESSMENT DISTRICT (AVAD) NO. 2007-3. DISTRICT PROJECT NO. 6439 General Manager James Kelly stated that this public hearing deals with approval of the Reliez Valley Alhambra Valley Assessment District No. 2007-3, which will serve residents who live along Reliez Valley Road just east of the Alhambra Valley Road intersection. The proposed AVAD will finance construction of approximately 1,650 feet of 8-inch sewer main. Provisional Senior Engineer Tom Godsey stated that the Reliez Valley AVAD meets the AVAD criteria and will potentially serve 14 properties. It consists of 1,650 feet of 8-inch sewer. The sewer main cost estimate is $325,618, and the cost per property is $30,611 which includes the $7,303 trunk sewer indirect reimbursement fee. This would amount to an annual payment of $3,193. Mr. Godsey reported that he received 12 votes in support of the AVAD, 0 votes opposing the AVAD, and 2 property owners did not submit a ballot. The public hearing was opened and closed without comments. It was moved by Nejedly and seconded by Member Menesini to take the following actions: (1) Find that the project is categorically exempt from CEQA (2) Adopt Resolution 2008-053 overruling protests (3) Adopt Resolution 2008-054 confirming compliance with California Constitution, Article XIIID, Section 4; (4) Adopt Resolution 2008-055 approving the Engineer's Report and assessment ordering improvement (5) Authorize the General Manager to execute an agreement with parcel owners. Book 57 - Page 179 Board Minutes of May 15, 2008 Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Menesini, Nejedly, Lucey None Hockett, McGill b. CONDUCT A PUBLIC HEARING ON THE CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2008-09. AND THE 2008 TEN-YEAR CAPITAL IMPROVEMENT PLAN. APPROVE THE 2008 CIP. APPROVE THE CIB FOR INCLUSION IN THE FISCAL YEAR 2008-09 DISTRICT BUDGET. AND FIND THAT THE PROPOSED BUDGET IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) General Manager James Kelly stated that Director of Engineering Ann Farrell will discuss the draft Fiscal Year 2008-09 Capital Improvement Budget and the 2008 Ten- Year Capital Improvement Plan. These two documents were discussed in detail at a special meeting of the Board on April 10, 2008. Member McGill joined the meeting. Director of Engineering Ann Farrell reported that total budgeted revenue for 2008/09 is $38,264,000 and total budgeted expenses are $38,858,000, for a negative variance of $594,000. The projected balance in the sewer construction fund as of June 30,2009 is anticipated to be $47,173,000. She stated that the total proposed FY 2008/09 authorization for the Treatment Plant is $26,939,000; $31,027,000 for Collection Systems; $3,854,000 for General Improvements; and $429,000 for Recycled Water, which makes a total of $62,249,000. Recommended expenditures are $22,355,000 for the Collection System; $12,680,000 for the Treatment Plant; $3,418,000 for General Improvements; and $405,000 for Recycled Water. The public hearing was opened and closed without comments. It was moved by Member Menesini and seconded by Member Nejedly to approve the 2008 Capital Improvement Plan; to approve the Capital Improvement Budget for inclusion in the Fiscal Year 2008-09 District Budget and to find that the proposed budget is exempt from the California Environmental Quality Act (CEQA). Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: McGill, Menesini, Nejedly, Lucey None Hockett Book 57 - Page 180 Board Minutes of May 15, 2008 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $219.989 TO SITEWORKS CONSTRUCTION. INC. AS THE LOWEST RESPONSIVE BIDDER FOR THE CONSTRUCTION OF WET WEATHER BYPASS IMPROVEMENTS (PRE-LOAD PHASE). DISTRICT PROJECT 7241. AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS: AUTHORIZE THE GENERAL MANAGER TO APPROVE AN AMENDMENT TO AN EXISTING PROFESSIONAL SERVICES AGREEMENT NOT TO EXCEED $35.000 WITH GEOMATRIX FOR DESIGN SERVICES: AUTHORIZE THE GENERAL MANAGER TO APPROVE AN AMENDMENT TO AN EXISTING PROFESSIONAL SERVICES AGREEMENT NOT TO EXCEED $18.000 WITH DODSON PSOMAS FOR THE COMPLETION OF SPECIFICATIONS AND PLANS; AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) General Manager James Kelly stated that the Wet Weather Bypass Improvements Project will be completed in two phases. The main phase of the project will be bid next year and will provide necessary improvements to the emergency wet weather discharge system. These improvements will include a new gravity overflow structure and box culvert to discharge directly to Walnut Creek. The current Pre-Load phase of the project involves using a preload fill to consolidate the soft, organic clay soils that underlie the site of the new overflow structure. The preloading of the site will greatly reduce the potential settlement that would take place over time. Eleven bids were received from contractors on April 22, 2008. The engineer's estimate was $374,000. The bids ranged from $219,989 to $470,500. Staff recommends awarding a $219,989 contract to Siteworks Construction, Inc, the lowest responsive bidder. It was moved by President Lucey and seconded by Member Nejedly to award a construction contract in the amount of $219,989 to Siteworks Construction, Inc. as the lowest responsive bidder for the construction of Wet Weather Bypass Improvements (Pre-Load Phase), District Project 7241 and to authorize the General Manager to execute the contract documents; to authorize the General Manager to approve amendments to existing professional services agreements as recommended; and to find that the project is exempt from the California Environmental Quality Act (CEQA). Motion passed by the following vote of the Board: Book 57 - Page 181 Board Minutes of May 15, 2008 AYES: NOES: ABSENT: Members: Members: Members: McGill, Menesini, Nejedly, Lucey None Hockett b. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1.429.972 TO NCC!. INC. AS THE LOWEST RESPONSIVE BIDDER FOR THE CONSTRUCTION OF THE AERATION AIR RENOVATIONS PROJECT. DISTRICT PROJECT 7207. AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS. AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA General Manager James Kelly reported that the Aeration Air Leaks Damage Assessment Project, DP 6157, was implemented in 2002 to assess the air leaks that took place for many years in the basins from the floor of the air plenum boxes. This Aeration Air Renovations Project continued the investigation into potential repair methods to improve the reliability of the in-tank air delivery system for the aeration process. Based on the outcome of last summer's demonstration projects, the repairs of all air plenum boxes will be done using a pressure grouting method. This would seal the cracking within the structure's foundation slab in addition to filling any voids in the underlying base rock to increase stability of the structure. Seven bids were received from contractors on April 24, 2008. The engineer's estimate was $1,600,000. The bids ranged from $1,429,972 to $2,743,310. Staff recommends awarding a $1,429,972 contract to NCCI, Inc., the lowest responsive bidder. It was moved by Member Menesini and seconded by Member McGill to award a construction contract in the amount of $1 ,429,972 to NCCI, Inc. as the lowest responsive bidder for the construction of the Aeration Air Renovations Project, District Project 7207 and to authorize the General Manager to execute the contract documents; and to find that the project is exempt from the California Environmental Quality Act (CEQA). Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: McGill, Menesini, Nejedly, Lucey None Hockett Book 57 - Page 182 Board Minutes of May 15, 2008 7. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. AWARD A CONTRACT TO C. OVERAA & COMPANY AS THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $3,693,000 FOR THE CONSTRUCTION OF STANDBY POWER FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT NO. 7248. AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS; AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENTS WITH MWH NOT TO EXCEED $150,000 AND WITH ATI NOT TO EXCEED $75.000 FOR CONSTRUCTION SUPPORT SERVICES; AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) General Manager James Kelly stated that staff advertised the Standby Power Facility Improvements Project on March 13,2008 and March 19,2008, and opened bids on April 21,2008. The project will replace two existing engine generators with two new 2- megawatt engine generators that meet California Air Resources Board emissions requirements. The standby power system will also be modified to produce and distribute electricity at twelve kilovolts and the load shedding system will be expanded to add more facilities. Provisional Senior Engineer Tom Godsey described the project scope and stated that six bids were received on April 21, 2008. The C. Overaa and Company bid is based on the submittal of Detroit DiesellMTU engines. It was moved by Member Nejedly and seconded by Member McGill to award a contract to C. Overaa & Company as the lowest responsive bidder in the amount of $3,693,000 for the construction of Standby Power Facilities Improvements Project, District Project No. 7248, and to authorize the General Manager to execute the contract documents; to authorize the General Manager to execute a professional services agreements with MWH not to exceed $150,000 and with ATI not to exceed $75,000 for construction support services; and to find that the project is exempt from the California Environmental Quality Act (CEQA). Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: McGill, Menesini, Nejedly, Lucey None Hockett 8. REPORTS a. GENERAL MANAGER Items 1) and 2) were deferred into later in the agenda to allow for the arrival of Board Member Hockett. Book 57 - Page 183 Board Minutes of May 15, 2008 3) General Manager James Kelly announced that the Martinez Sewer Renovations Project (Phase 2), District Project 5979, is part of the ongoing Collection System Renovation Program. Multiple phases of sewer renovations are expected in Martinez. This phase will focus on sewers just west and south of downtown. The project will reconstruct approximately 7,000 linear feet of 6- and 8-inch sewer lines within public right-of-way and easements. Both open-cut and horizontal directional drilling methods will be used. This project will be advertised on May 29 and June 2,2008. Bids open on Tuesday, June 17, 2008. The construction cost is currently estimated at $1,940,000. The Board will be asked to approve the construction contract at the July 3, 2008 Board Meeting. 4) General Manager James Kelly announced that the Auxiliary Boiler Improvements Project, District Project 7231, will replace the mechanical controls on the auxiliary boilers with new direct-acting electronic controls. The project consists of the addition of new control systems that will improve the efficiency of the boilers and other modifications to improve the safety and reliability of the boilers. This project will advertise in June 2008 and bids will be opened in July 2008. The construction cost is currently estimated at $250,000. The Board will be asked to approve the construction contract at the August 7,2008 Board Meeting. 5) General Manager James Kelly announced that the Lafayette Sewer Renovation Project will renovate and/or replace approximately 11,000 linear feet of 6- and 8-inch sewer within the public right-of-way and easements. Pipebursting will predominately be utilized as the method of installation for the sewers. Additionally, the project will include open cut sewer main point repairs within the public right-of-way on Saint Mary's Road in Lafayette and Moraga Road in Moraga. Bids will open on Tuesday, June 3, 2008. The construction cost for this project is estimated at $1,980,000. Based on discussions with the East Bay Municipal Utility District (EBMUD), the City of Lafayette, and the Town of Moraga, the District's contractor can not start work on the Saint Mary's site prior to August 25, 2008. EBMUD's project on Moraga Road is scheduled to be completed by August 19, 2008. Additionally, the District's contractor will coordinate and combine traffic control efforts with the City of Lafayette's project - Saint Mary's Road Slide Repair. The City of Lafayette's slide repair project is also schedule to start on August 25, 2008. The District and the City of Lafayette have planned the projects to avoid conflict with EBMUD's road closures and to mitigate traffic impacts after the road is opened. Book 57 - Page 184 Board Minutes of May 15, 2008 A public outreach meeting has been scheduled for Tuesday, May 13, 2008 at the Lafayette Community Center at 7:00pm. 6) General Manager James Kelly announced that, during the calendar years 2007 and 2008, the Bay Area Air Quality Management District (BAAQMD) issued four Notices of Violations (NOV) to the District. On April 11, 2008, the District received a settlement offer of $5,000 from BAAQMD to resolve the NOVs. District staff and legal counsel reviewed the settlement offer and determined that it was acceptable. BAAQMD recognized that the District responded rapidly and diligently to the incidents once they were discovered, and the fines were attenuated accordingly. The BAAQMD settlement offer is valid for 30 days. Staff has sent a check for $5,000 to BAAQMD to finalize the settlement. 7) General Manager James Kelly announced that there was damage to the vactor truck cab/chassis during transport to the Vactor Manufacturing facility. This hydrovac was approved with the 2007-08 District Equipment Budget. The cab/chassis has been inspected by District mechanic Nick Wright and the frame laser tested by a frame shop. The result of the inspection and testing prove the cab/chassis to be sound and a good foundation for the Vactor Hydrovac unit. The manufacturer, Sterling Motors, has also agreed to extend the overall warranty on the truck by one full year. Staff plans to notify the Vactor dealer, Ricker Machinery, that we will accept the cab/chassis. 8) General Manager James Kelly announced that, on April 25, 2008, the California Climate Action Registry (CCAR) notified the District that they had reviewed the District's 2006 greenhouse gas emissions inventory. CCAR further indicated that the District's emissions inventory meets the standards for general reporting protocol. The emissions report was entered into the CCAR database and the District was granted the status of Climate Action Leader. The District is permitted to display the logo identifying the District as a Climate Action Leader. 9) General Manager James Kelly announced that Mt. View Sanitary District (MVSD) will hold a public open house on Saturday, May 17, 2008 to commemorate their 85th anniversary. The event is scheduled from 10 a.m. to 2 p.m. Since parking is limited, parking will be provided at 1635 Pacheco Boulevard with shuttle buses transporting attendees inside the plant gate. 10) General Manager James Kelly announced that, on May 20, 2008, the District will provide a two-hour ADA training program for staff who have contact with the public. The program, "ADA Sensitivity in the Workplace", will provide information about strategies that can be used to make the Book 57 - Page 185 Board Minutes of May 15, 2008 District more welcoming and better able to assist customers with disabilities. It also meets the requirements of the ADA Self-Evaluation and Transition Plan, which the Board adopted in 2006. 11) General Manager James Kelly announced that, on Wednesday, May 7, 2008, District staff and project consultants attended the Walnut Creek Design Review Commission for a study session on the Use Permit for the Collection System Operations (CSO) Facility Improvements. The facility design concept was very well received. The Commission complimented the architecture and the creative use of the constrained site. Their questions centered on the appearance of the facility from Springbrook Road. They are interested in adding more diversity in landscaping, such as adding some decorative columns to the fencing and appropriate signage to note the circulation pattern, Le. entrance and exit, from the multiple driveways. They also had some minor suggestions on changes to the parking layout and driveway circulation. Staff will be working to evaluate and incorporate some of their suggestions prior to the next Design Review meeting scheduled for June 4, 2008. At that meeting, the Design Review Commission is expected to recommend that the project go forward to the Planning Commission for approval of the Conditional Use Permit. One member of the public, Mr. Primo Facchini, asked to speak. He supports the project and reminded the Commission that the District is an Independent California Special District which is funded by the taxpayers. As such, each member of the Commission is a District ratepayer. He also stated that Commission should be aware that they are spending ratepayers' money and their own money if they impose any requirements that would significantly increase the cost of the project. In speaking to Mr. Facchini after the meeting, he indicated that he is a Trustee of a local Cemetery District and feels strongly that the public does not understand the services that Special Districts provide. In response to a question from President Lucey, Director of Engineering Ann Farrell stated that it is anticipated that the project will go out to bid in spring of 2009. 12) General Manager James Kelly announced that CASA Lobbyist Mike Dillon provided an update via letter on the property tax issue on May 8, 2008. He urges agencies to continue writing to their legislator, expressing concerns about the impact the loss of property taxes would have on agency operations. Book 57 - Page 186 13) 14) Board Minutes of May 15, 2008 General Manager James Kelly announced that the National Association of Clean Water Agencies (NACWA) 200S Summer Conference and 3Sth Annual Meeting will be held in Anchorage, Alaska, from July 15 through July 1S, 2008. The theme of the conference is "The future of Clean Water is Now! - - How Next Generation Issues are Impacting Utilities Today." The conference includes the awards ceremony for the Peak Performance Awards. During the ceremony, the District will receive a Platinum 10 Award for ten years of full regulatory compliance. Director of Plant Operations Doug Craig and Plant Operations Division Manager Randy Grieb will utilize their Management Profession Expense Reimbursement to attend the conference and receive the Platinum Award. Laboratory Superintendent Bhupinder Dhaliwal will also attend the conference and receive the Platinum Award. Bhupinder's attendance is included in next year's Travel & Training Budget for Plant Operations. General Manager James Kelly announced that District Project 5979, Martinez Sewer Renovations (Phase 2), is part of the ongoing Collection System Renovation Program. Multiple phases of sewer renovations are expected in Martinez but this phase will focus on sewers just west and south of downtown. The project will reconstruct approximately 7,000 linear feet of 6- and 8-inch sewer lines within public right-of-way and easements. Both open-cut and horizontal directional drilling methods will be used. A public outreach meeting was held on Thursday, May 8, 2008 at Martinez City Hall. Twenty-two homeowners were in attendance and the meeting was well received by all attendees. This project will be advertised on May 29 and June 2,2008. The bids will be opened on June 17,2008. The construction cost is currently estimated at $1,940,000. More information will be presented when the Board is asked to approve the construction contract on July 3, 200S. 15) General Manager James Kelly announced that, at its May 14, 2008 meeting, Contra Costa LAFCO ordered completion of District Annexation (DA) 166. No one attended a protest hearing on the proposal earlier in the week. DA 166 is an approximately SS-acre annexation of nine parcels in Lafayette, Martinez, and Orinda. LAFCO also continued its discussion of expanding central county service agencies' Spheres of Influence out to the Urban Limit Line and directed its staff to put together a plan to collect contributions from agencies to pay for an environmental report. While both the District and the Contra Costa Water District submitted letters to LAFCO explaining why they did not want to pay for such an environmental study, LAFCO requested that representatives of each agency appear at its June 11, 200S meeting to discuss the matter further. District staff will attend that meeting and Book 57 - Page 187 Board Minutes of May 15, 2008 reiterate our position that it is not in the best interest of our ratepayers to fund CEQA for this expansion of our Sphere Of Influence (SOl). 16) General Manager James Kelly announced that District Project 5977, Lafayette Sewer Renovations (Phase 5), is part of the ongoing Collection System Renovation Program. This project will reconstruct approximately 11,000 linear feet of 6- and 8-inch sewer lines within public right-of-way and easements utilizing pipe bursting. A public outreach meeting was held on Tuesday, May 13, 2008 at the Lafayette Community Center. Twenty-six homeowners were in attendance and the project details were well received by all attendees. Bids for this project will be opened on June 17, 2008. The construction cost is currently estimated at $1,980,000. More information will be presented when the Board is asked to consider approval of the construction contract on June 19,2008. Announcements 3-16 were provided as written announcements. b. COUNSEL FOR THE DISTRICT 1) District Counsel Kent Aim summarized the voting procedures and requirements for setting the sewer service charge rate and collection of the sewer service charge on the tax roll, which will be heard at the June 5, 2008 Board Meeting. He stated that the maximum rate set by Ordinance 245 is $313 for FY 2008/09. If the Board wishes to adopt a lower rate, it must do so by resolution. If no resolution is adopted the rate will be $313 for 2008/09. 2) District Counsel Kent Aim summarized the differences between Propositions 98 and 99. Member McGill stated that the League of California Cities supports Proposition 99. a. GENERAL MANAGER - cont'd 1 ) Overflow Protection Device Report General Manager James Kelly stated that, as part of the ongoing District Code revision, the Code section addressing the requirement for overflow protection devices is being reviewed and revised. The Board received a memo which addresses overflow protection devices (OPO) and contains a comprehensive review of historical District practices, the policies of other agencies, and alternatives for consideration. Book 57 - Page 188 Board Minutes of May 15, 2008 Director of Engineering Ann Farrell reviewed the contents of the memo and gave historical information on OPDs. She stated that other agencies were surveyed and 33 percent had no OPD requirement, and 67 percent had various OPD requirements. She described the benefits of installing an OPD and projected cost savings. She stated that staff recommends requiring OPOs for all new and repaired sewers, and retroactively for all sewers meeting certain elevation criteria and those where an overflow has occurred. She recommended noting in the Code that the retroactive provision will begin with extensive outreach and research and that no timelines for compliance will be set until the outreach effort is complete. She stated that the Board may wish to consider in the future modifying the Code to set a timetable for OPO compliance with appropriate incentives and penalties. Member Hockett indicated that, as a member of the Ad Hoc Code Review Committee, her opinion was that the OPD requirement was not intended to be mandatory. District Counsel Kent Aim stated that the draft language in the Code is intended to provide the maximum protection for the District. Member McGill concurred. Member Nejedly stated that outreach and public education about OPDs is very important. Member Menesini stated that he would like to hear of other agencies' experiences with requiring the installation of OPOs. President Lucey stated that he does not support requiring OPOs for homes built before 1960. He supports requiring OPDs for new construction and sewer repairs or renovations. Member McGill concurred that education is very important and suggested targeting those residences that have the elevation issue. He agreed that OPDs should be required on new construction and repairs or renovations. It was moved by President Lucey and seconded by Member McGill to direct staff to proceed with Option 5 in the staff memorandum, requiring OPOs for all new construction and repairs, and to direct staff to develop a comprehensive and targeted outreach/education program to encourage installation of OPOs. Motion passed by unanimous vote of the Board. 2) Board Member Transportation General Manager James Kelly stated that the Board received a memo on this item in the Board packets. The current policy/practice regarding traveling on Oistrict business is in compliance with the law. There is no policy regarding the Book 57 - Page 189 Board Minutes of May 15, 2008 transportation of Board Members. He referred Board Members to District Counsel Kent Aim's memorandum on the matter. Member Hockett stated that her preference is to leave the policy as is. President Lucey stated that there are two issues to consider. He stated that, if a Board Member has problems getting to Board Meetings, staff should do whatever is necessary to get elected officials to the meeting. With regard to transportation to the airport, he stated that, in his opinion, Board Members should not use limousines or airport cars to get to the airport, since it presents a bad image to the public. He stated that airport shuttles or personal cars should be used. Member Nejedly stated that, if someone is disabled, or unable to drive, the District should get them to the airport. He agreed that use of limousines for transportation should be prohibited. There are other methods of transportation that should be used, including airport shuttles or taxicabs. He added that driving Board Members is a separate issue, and transportation should be provided if a Board Member is unable to drive to and from Board meetings. Member McGill stated that he agreed that use of limousines presents a perception problem even if the cost is reasonable. He stated, however, that he did not object to use of a rented car and driver as long as the cost was lesser or equal to the cost of what would normally be reimbursed, such as driving one's own car or using a taxicab. Member Hockett stated that she raised the question because, when she submitted her expense report, reimbursement for transportation provided by Ken's Limousine was initially denied, even though the cost was less than traveling in a personal vehicle. The transportation was, as usual, shared with another member of staff. She stated that the transportation provided was not in fact a limousine, rather just a car and driver. She added that she selected that method of transportation with the intention of it costing less than other reimbursable ways of getting to the airport. With regard to transporting Board Members to and from meetings, she stated that there is no District policy and she wanted to make sure she understood what the requirements are. President Lucey reiterated his position that, while he approved the expense on the previous reimbursement claim since there was not written policy against it, he would not approve future requests for reimbursement of Board Member travel by limousines or airport cars. President Lucey asked the General Manager to prepare a document that says stated that use of airport cars, chauffeured cars or limousines is prohibited, and that airport shuttles or personal cars should be used. Book 57 - Page 190 Board Minutes of May 15, 2008 Members McGill and Nejedly and President Lucey agreed that, since there does not appear to be any controversy with regard to the current practice of providing transportation to Board Members to meetings if needed, that issue will not be included. Member McGill stated that, while he agrees there may be a perception problem with the use of limousines, he does not object to the use of chauffeur-driven cars for transportation to and from the airport, as long as the cost is equal to or less than what would normally be reimbursable. President Lucey stated that he disagrees with that opinion. He reiterated his request to the General Manager to prepare a document for action by the Board at a future meeting. c. SECRETARY OF THE DISTRICT Announced distribution of Human Resources Committee agenda. d. BOARD MEMBERS 1) Member McGill reported on the May 12, 2008 Budget and Finance Committee meeting and summarized the Action Summary. He stated that the Committee reviewed options for the approval process for conferences and meetings, and recommended that the current process not be changed, other than emphasizing Board travel and conferences in the annual budget; and announcing the meeting or conference in advance at a Board meeting. If a meeting comes up that was not planned in advance, additional Board authorization may be needed. Member Nejedly stated that there may be last-minute meetings that Board Members wish to attend which may not receive Board approval in advance due to timing constraints. He stated that, as long as the meeting is for District purposes, he does not have a problem waiving the requirement for advance Board approval. Member McGill suggested removing "in advance" from the Action Summary. District Counsel Kent Aim stated that AB 1234 says that, with regard to compensation for the Board, those events must be authorized in the District policy or receive Board approval prior to the event. In reviewing the language further, he clarified that the section to which he referred deals with reimbursement, not the stipend. He added that, as long as the language in the District policy is broad enough to capture the type of meetings to be attended, pre-approval may not be required. Book 57 - Page 191 Board Minutes of May 15, 2008 2) Member McGill reported on the May 8, 2008 Recycled Water Committee meeting and summarized the Action Summary. Member Nejedly inquired whether the District supplies local water trucks with recycled water. Ms. Farrell responded that, some time ago, there were hydrants in the service area that trucks could use to fill up. She stated that staff will revisit that issue. District Counsel Kent Aim stated that a permit is required to obtain recycled water. Recycled water could be made available to landscaping trucks, but they would require permits. Ms. Farrell state that staff will look into that possibility and will report back to the Board at a future meeting. 3) Reports on miscellaneous business meetings attended by Board Members. Member McGill reported on his attendance at the Mayors' Conference, and the Contra Costa Council Small Business Awards lunch Member McGill reported that he will be attending additional CSDA Training on May 16, the Mt. View Sanitary District Anniversary Celebration on May 17, and the EBMUD Breakfast on May 22. President Lucey stated that he plans to attend the next LAFCO meeting at which the Sphere of Influence matter is discussed. Member McGill suggested contacting the Contra Costa Special Districts Association representative David Piepho to advise him of the District's position. He stated that he would not object to the LAFCO proposal to expand the sphere of influence if there was no cost to the District. 4) Announcements Member Menesini announced the upcoming Environmental Alliance meeting on Monday, May 19, 2008. The speaker will be Susan Klosterhaus, Ph.D., who will speak on Emerging Pollutants in the San Francisco Estuary. The Board took a recess at 4 p.m. and reconvened at 4:08 p.m. Book 57 - Page 192 Board Minutes of May 15, 2008 9. BUDGET AND FINANCE a. RECEIVE THE FISCAL YEAR 2008-2009 OPERATIONS AND MAINTENANCE BUDGET: AND RECEIVE THE FISCAL YEAR 2008-2009 DEBT SERVICE FUND BUDGET General Manager James Kelly stated that the Fiscal Year 2008-2009 O&M and Debt Service Fund Budgets are being submitted for review by the Board prior to a Public Hearing and approval of the proposed budgets scheduled for the June 5, 2008 Board Meeting. The budget is based on information available in the March-April time period. Changes occur, such as the Kaiser claim proposed settlement, and more recently the escalation of natural gas costs, which are now in excess of $11.50 per decatherm. Staff will be returning to Board to request authority to purchase natural gas at a higher cost next meeting. Controller Debbie Ratcliff presented both budgets. She described assumptions embedded in the budget, which included an $11 increase in the sewer service charge and a $51 allocation to Sewer Construction. Total budgeted ad valorem tax is $12.4 million, with $3.8 million allocated to the Debt Service Fund and $8.6 million to the Sewer Construction fund. Expense assumptions include $5.2 million for GASB 45 post retirement benefits, and increases to health care costs for active and retired employees. Administrative overhead will increase from 107 percent to 119 percent of capitalized salary. Total District revenues are projected to be $95,295,000 with expenses projected at $97,354.000. This will reduce the fund balance by slightly over $2 million. Operations and Maintenance budget revenues will increase by 7.6 percent due to the increase in the Sewer Service Charge and the allocation to O&M. Expenses will see a 5.9 percent increase. This will reduce the fund for O&M by $1.5 million, leaving a balance of $5.3 million, which is slightly less than a 10 percent prudent reserve. Ms. Ratcliff described key labor and benefit costs and explained key increases in the 2008-09 budget. Two key increases are the cost and usage of chemicals and utilities. She stated that the budget was based on a cost of $9.50 per decatherm for natural gas, which is already over $11.50 per decatherm. The market is very volatile, so the budget has not been adjusted; however, the District could be $1 million over budget next year in utility costs. Revenues from the debt service fund come from property taxes and interest earned on the bond reserve account. Debt service consists of interest and principal payments. Revenue is projected to be $3,866,000 and debt service $3,867,000. Book 57 - Page 193 Board Minutes of May 15, 2008 Member McGill requested that the budgets be reviewed by the Budget and Finance Committee in future years, and inquired whether the Committee could review the current budget at its meeting on June 2, 2008. The Board received the fiscal year 2008-2009 Operations and Maintenance Budget; and received the fiscal year 2008-2009 Debt Service Fund Budget. They directed staff to schedule the matter for review by the Budget and Finance Committee on June 2, 2008 and in subsequent years prior to Board consideration. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member McGill requested that staff address the problem that members of the audience cannot see the overhead or PowerPoint presentations given by staff. Director of Administration Randy Musgraves reported that the problem is being addressed and a monitor should be installed shortly. 12. CLOSED SESSION The closed session was not held. 13. REPORT OUT OF CLOSED SESSION None. 14. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at 4:20 p.m. ~y/! 4 President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: @~~ Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 57 - Page 194