HomeMy WebLinkAboutBOARD MINUTES 06-05-08MINUTES OF THE REGULAR BOARD MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON JUNE 5, 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, June 5, 2008.
President Lucey called the meeting to order and requested that the Secretary call roll.
1. ROLL CALL
PRESENT: Members: Hockett, McGill, Menesini, Nejedly, Lucey
ABSENT: Members: 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 Household Hazardous Waste Technician II
Charles McPherson; Materials Coordinator Michelle Edwards and Staff Engineer Justin
Waples.
2. PUBLIC COMMENTS
None.
3. AWARDS AND COMMENDATIONS
a. ADOPT RESOLUTION 2008-056 COMMENDING BILL WYGAL FOR HIS
COMMITMENT TO PROTECTING THE ENVIRONMENT AND SUPPORTING
THE DISTRICT'S POLLUTION PREVENTION ACTIVITIES
General Manager James Kelly reported that, at the last Board Meeting, the Board
recognized Bill Wygal of Bill's Ace Hardware for his pollution prevention activities and
directed staff to prepare a resolution commending him for his work.
It was moved by Member Menesini and seconded by President Lucey to adopt
Resolution 2008-056 commending Bill Wygal on his pollution prevention activities.
Motion passed by unanimous vote of the Board.
Book 58 -Page 1
Board Minutes of June 5, 2008
4. CONSENT CALENDAR
It was moved by Member Hockett and seconded by Member Menesini to adopt the
Consent Calendar as recommended. Motion passed by unanimous vote of the Board.
a. Approve expenditures dated June 5, 2008. Reviewed by Budget and Finance
Committee.
b. Receive April 2008 Financial Statements. Reviewed by Budget and Finance
Committee.
c. Approve minutes of May 1, 2008 Board Meeting.
d. Advise the Board of the closeout of Lower Orinda Pumping Station Renovation,
District Project 5448.
e. Advise the Board of the closeout of Vessing Sewer Renovation, District Project
5646.
f. Advise the Board of the closeout of A-Line Interceptor Rehabilitation, District
Project 5806.
g. Advise the Board of the closeout of North Orinda Sewer Renovations, Phase 2,
District Project 5833.
h. Advise the Board of the closeout of Walnut Creek Sewer Renovation, Phase 5,
District Project 5964.
Advise the Board of the closeout of North Orinda Sewer Renovation, Phase 2.1,
District Project 5968.
Advise the Board of the closeout of Martinez Sewer Renovations, Phase 1,
District Project 5975.
k. Advise the Board of the closeout of Piping Renovations and Replacement
Project, Phase 3, District Project 7234.
Advise the Board of the closeout of twelve Capital Improvement Projects.
m. Approve Lafayette Sewer Renovations, Phase 5, District Project 5977, for
CEQA/permitting purposes and find that the project is exempt from CEQA.
n. Accept the contract work for the Lower Orinda Pumping Station Renovation -
Phase 2, District Project 5944, constructed by GSE Construction Company, Inc.,
and authorize filing of the Notice of Completion.
Book 58 Page 2
Board Minutes of June 5, 2008
o. Adopt Resolution of Application 2008-057 requesting that Contra Costa LAFCO
initiate proceedings to annex seven annexation parcels to the District and find
that the annexations are exempt from CEQA (District Annexation 171).
p. Adopt Resolution 2008-058 establishing July 3, 2008 as the date for a public
hearing to consider the establishment of Via Vaqueros Alhambra Valley
Assessment District No. 2008-7, pursuant to California Constitution, Article XIII
D, Section 4, and Streets and Highway Code, Sections 5898.20 and 5898.24.
q. Adopt Resolution 2008-059 confirming publication of a summary of District
Ordinance No. 248 -adding Section 6.20.400 to the District Code regarding
Customer Reimbursement of District Installation Costs.
Direct staff to secure the services of an arbitrator in accordance with the
disciplinary appeal procedure.
s. Authorize staff to renew insurance coverage for Fiscal Year 2008-2009 excess
liability, pollution (Household Hazardous Waste) liability, and employment
practices liability at expiring terms and conditions, renew property coverage at
rates not to exceed a five percent increase and report final Workers'
Compensation premiums to the Budget and Finance Committee upon receipt.
Authorize the General Manager to execute an agreement with Nexus Integration
Services in an amount not to exceed $140,000 for the purchase and
implementation of network upgrades.
u. Increase the number of Household Hazardous Waste Technicians I/II from two to
three. Recommended by Human Resources Committee.
5. HEARINGS
a. CONDUCT A PUBLIC HEARING REGARDING THE ESTABLISHMENT OF THE
MONTEIRA ALHAMBRA VALLEY ASSESSMENT DISTRICT NO. 2007-4,
DISTRICT PROJECT NO. 6412
General Manager James Kelly stated that this public hearing deals with approval of the
Monteira Alhambra Valley Assessment District No. 2007-4, which will serve residents
who live along Monteira Lane and Reliez Valley Road. The proposed AVAD will finance
construction of approximately 1,650 feet of 8-inch sewer main.
Provisional Senior Engineer Tom Godsey stated that the Monteira Valley AVAD meets
the AVAD criteria and will potentially serve eight properties. It consists of 360 feet of fl-
inch sewer.
Mr. Godsey reported that he received five votes in support of the AVAD, 0 votes
opposing the AVAD, and three property owners did not submit a ballot.
Book 58 Page 3
Board Minutes of June 5, 2008
The public hearing was opened and closed without comments.
It was moved by Member Hockett and seconded by Member Nejedly to take the
following actions as recommended by staff:
(1) Find that the project is categorically exempt from CEQA
(2) Adopt Resolution 2008-060 overruling protests
(3) Adopt Resolution 2008-061 confirming compliance with California Constitution,
Article XIIID, Section 4;
(4) Adopt Resolution 2008-062 approving the Engineer's Report and assessment
ordering improvement
(5) Authorize the General Manager to execute an agreement with parcel owners.
Motion passed by unanimous vote of the Board.
b. CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS ON THE FY
2008-2009 OPERATIONS AND MAINTENANCE BUDGET. DEBT SERVICE
FUND BUDGET AND THE SELF-INSURANCE FUND BUDGET, AND FOR THE
ESTABLISHMENT OF THE FY 2008-2009 SEWER SERVICE CHARGE RATES,
AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE
COUNTY TAX ROLL FOR COLLECTION
General Manager James Kelly stated that the District Code and State Law require
holding public hearings for the establishment of the Sewer Service Charge rates and
placing the charges on the County tax roll for collection. Although not required by law,
the District also holds a public hearing to receive comments on the 2008-2009
Operations and Maintenance Budget, Debt Service Fund Budget, and the Self-
insurance Fund Budget.
Controller Debbie Ratcliff presented a report, describing the assumptions made for the
2008-09 Operations and Maintenance Budget, which include an increase in the sewer
service charge of $11. Expense assumptions include $5.2 million allocation for GASB
45 post retirement benefits. She compared the 2007-08 budget with the 2008-09
budget. Revenues for 2008-09 are projected to increase by 7.6 percent and expenses
by 5.9 percent.
The Debt Service Fund budget totals $3,867,000, and the Self Insurance Fund
$3, 878, 000.
The public hearing was opened and closed without comments.
Member McGill reported that this was reviewed by the Budget and Finance Committee,
which recommended approval.
Book 58 Page 4
Board Minutes of June 5, 2008
It was moved by Member Nejedly and seconded by Member McGill to approve the
Fiscal Year 2008-09 Operations and Maintenance Budget, Debt Service Fund Budget,
and Self Insurance Fund Budget; to adopt Resolution 2008-063 establishing the Fiscal
Year 2008-09 Sewer Service Charge rate increase of $11 for a total Sewer Service
Charge of $311; and to adopt Resolution 2008-064 authorizing collection of the Fiscal
Year 2008-09 Sewer Service Charges on the County Tax Roll. Motion passed by
unanimous vote of the Board.
6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
None.
7. BIDS AND AWARDS
a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,153,880
FOR THE CONSTRUCTION OF CAMINO PABLO TRUNK SEWER
IMPROVEMENT, DISTRICT PROJECT 5946, AND FLUSH KLEEN FORCE
MAIN RENOVATION, DISTRICT PROJECT 5949, TO CALIFORNIA
TRENCHLESS, INC., THE LOWEST RESPONSIVE BIDDER; FIND THAT THE
PROJECT IS EXEMPT FROM CEQA; AND AUTHORIZE THE GENERAL
MANAGER TO EXECUTE THE CONTRACT DOCUMENTS
General Manager James Kelly stated that, on May 20, 2008, the District received six
bids for the construction of the Camino Pablo Trunk Sewer Improvement Project and
the Flush Kleen Forcemain Renovation Project. The two projects were bid as one
construction contract due to their close proximity. The Camino Pablo Trunk Sewer
Improvement project consists of the installation of 3,000 linear feet of 8-, 10- and12-inch
sewer pipe utilizing open-cut and pipebursting construction methods. The Flush Kleen
Forcemain Renovation project consists of the installation of 3,400 feet of 8-inch
forcemain utilizing open-cut construction methods. The contract documents require
construction within Camino Pablo to be completed by August 15, 2008. He stated that
staff recommends that the Board award the project to California Trenchless Inc. for
$1,153,880; this is another favorable bid, as the Engineer's estimate was $2,000,000.
It was moved by Member Hockett and seconded by Member McGill to award a
construction contract in the amount of $1,153,880 for the construction of Camino Pablo
Trunk Sewer Improvement, District Project 5946, and Flush Kleen Force Main
Renovation, District Project 5949, to California Trenchless, Inc., the lowest responsive
bidder; to find that the project is exempt from CEQA; and to authorize the General
Manager to execute the contract documents. Motion passed by unanimous vote of the
Board.
Book 58 Page 5
Board Minutes of June 5, 2008
8. REPORTS
a. GENERAL MANAGER
1) Report on City of Walnut Creek Planning Commission review of Collection
System Operations Department Facility Improvements
General Manager James Kelly reported that, on Wednesday, June 4,
2008, staff returned to the Walnut Creek Design Review Commission for
their second review of the Collection System Operations Improvements
project before referring it to the Planning Commission. The project will go
to the Planning Commission on June 10, 2008.
Director of Engineering Ann Farrell provided a report on the findings of the
Design Review Commission. She stated that the total approved project
budget is $800,000, with total potential expenditures being $920,000.
$325,000 of the Board-authorized $800,000 as been spent to date. The
budget status will be reviewed after the July 16, 2008 Design Review
Commission meeting. She stated that staff authority has been used to the
limit.
The next steps are to attend the Planning Commission meeting on June
10, 2008, and to update drawings to reflect the comments from the Design
Review Commission and Planning Commission. The final review by the
Design Review Commission is scheduled for July 16, 2008. Design of the
building interior has been started in parallel and staff is optimizing building
layout within the agreed-upon footprint to make the best use of space.
The goal is to put the project out to bid in early 2009.
2) General Manager James Kelly announced that the Grand Jury will visit the
Headquarters Office Building and Plant Operations Division on Tuesday,
June 17, 2008 from 1:30 p.m. to 3:00 p.m. The group will consist of 20-25
participants. They have requested an overview of the District's services,
as well as the goals, objectives, and challenges faced. The group
specifically requested a plant tour. Foreperson Jerry Holcombe will be
heading the group.
3) General Manager James Kelly announced that the District will host a
public workshop on the South Orinda Sewer Renovation (Phase 3),
District Project 5985, on Thursday, June 19, 2008, from 7:00 p.m. to 8:00
p.m. at the Orinda Intermediate School's Multi-Purpose-Room located at
80 Ivy Drive in Orinda. This is the third phase of sewer renovations in
southern Orinda. Approximately 7,500 linear feet of 6-and 8-inch sewer
lines will be replaced in various locations. The project will go out for bid in
July with the bid opening scheduled for August.
Book 58 Page 6
Board Minutes of June 5, 2008
The District is coordinating the project construction with the City of Orinda
and East Bay Municipal Utility District to minimize traffic impact on Moraga
Way, Saint Mary's Road, and Moraga Road.
4) General Manager James Kelly announced that the District was informed
by the National Association of Clean Water Agencies (NACWA) that the
District's treatment facility has received the Platinum 10 Peak
Performance Award for ten years of consecutive permit compliance. The
treatment facility will be recognized in a presentation during the July 16,
2008 Awards Ceremony at the NACWA Summer Conference and 38tH
Annual Meeting being held in Anchorage, Alaska.
5) General Manager James Kelly announced that Buildings and Grounds
Supervisor Harry Wyles passed away on Tuesday, May 20, 2008. Harry
was an employee of the District for four years, and he will be missed.
Funeral service was held on Friday, May 23, 2008 at Pittsburg Funeral
Chapel. The family has requested that donations be made to Vitas
Hospice of East Bay located at 365 Lennon Lane, No. 140, Walnut Creek,
CA 94598.
6) General Manager James Kelly announced that Assembly Bill 1825
mandates two hours of Harassment Avoidance Training for supervisors
every two years. The District will be holding this training on June 25 and
June 26, 2008, in the Board Room from 9 a.m. to 11 a.m. and from 1 p.m.
to 3 p.m. The training will also be held at Collection System Operations
on June 30, 2008, after the monthly staff meeting. Diane O'Malley, a
partner from the District's labor law firm of Hanson, Bridgett, will be the
presenter.
7) General Manager James Kelly announced that recycled water rates will be
increased by 3 percent on July 1, 2008, in accordance with the Recycled
Water ordinance adopted by the Board. Board action is not needed to
implement the rate increase because the increase was built into the
ordinance. This increase is consistent with the increase in water rates by
the Contra Costa Water District (CCWD).
The District's rates remain at about 80 percent of Contra Costa Water
District's rates. Staff will be mailing out informational letters to recycled
water customers in early June.
8) General Manager James Kelly announced that, at the May 1, 2008 Board
meeting, residents on the private road section of Wanda Way informed the
Board that their road did not receive a 3-inch minimum asphalt pavement
thickness as stated in their Easement Purchase Agreement. District staff
has evaluated several paving options and determined that the best way to
ensure the minimum thickness is to install an overlay of 1-'/ inches of new
Book 58 Page 7
Board Minutes of June 5, 2008
asphalt over the current road. Pavement overlay work is planned for
completion in June.
9) General Manager James Kelly announced that the District Code revisions
will soon be ready for Board approval and adoption. The July 17, 2008
public hearing will be set at the June 19, 2008 Board meeting.
10) General Manager James Kelly announced that the problem of Compact
Fluorescent Lamp (CFL) disposal was covered in an ABC Channel 7
News report on Sunday, May 18, 2008. The Household Hazardous Waste
Collection Facility was featured in the story, and Communication Services
Manager Michael Scahill was interviewed.
11) General Manager James Kelly announced that the second year of the
Leadership Development Program was completed on May 14, 2008.
Certificates of completion were awarded and lunch was provided for
participants, their sponsors, and guests after the certificate award. The
Dublin-San Ramon Services District has decided to continue the program
in the fall.
12) General Manager James Kelly announced that the District's Water/
Wastewater Operator Training Program, which the District started a year
ago, will begin its third semester in August. The program has grown from
three classes administered at the District and sponsored by ten agencies,
to a total of six classes administered at the District, Pleasanton, and
Oakland and sponsored by fifteen agencies. A true indicator of the
program's success is the registration of 110 students in less than a week
for the six classes, 50 of which are returning students. The high
registration was accomplished without advertising. A Solano College
representative noted that other colleges in the country would envy the
success of this program.
13) General Manager James Kelly announced that CASA is soliciting
applications for their 2008 Achievement Awards. District staff plans to
submit the New Treatment Plant Control System Improvements Project
(Technological Achievement and Outstanding Capital Improvement
Categories); and the Wastewater Operator Training Program
(Organizational Innovation Award) for consideration. Winners will be
announced at the August 2008 CASA Conference in Monterey. If either
project wins, the award(s) will be presented at the January 2009 CASA
Conference in Indian Wells.
14) General Manager James Kelly announced that District Household
Hazardous Waste (HHW) staff are no longer accepting appointments for
the Household Hazardous Waste event this weekend in San Ramon. As
of June 4, 2008, HHW had over 500 appointments. The size of the facility
Book 58 Page 8
Board Minutes of June 5, 2008
and parking accommodations determine the number of participants. Last
year's event served 352 participants. An update of the event will be
provided for the June 19, 2008 Board meeting.
Announcements 2-14 were provided as written announcements.
b. COUNSEL FOR THE DISTRICT
Acting District Counsel Ben Reyes stated that there were no reports.
c. SECRETARY OF THE DISTRICT
1) Report on Senate Bill 343 Pertaining to Agenda Materials
Secretary of the District Elaine Boehme reported that Senate Bill 343 goes into
effect on July 1, 2008. The bill adds mandates to the Brown Act ensuring the
availability to the public of agenda materials that are distributed to a majority of
the legislative body after distribution of the packet.
To address these requirements, any materials relating to matters on the agenda
that are distributed after the Board Binder goes out will be available in the lobby
in aseparately-labeled binder. Copies of material handed out at the Board
meeting will also be available in the Board Room during the meeting.
These requirements also apply to Board Standing Committees.
Wording will be added to the front of the Board Agenda and Committee agendas
as required by SB 343.
2) Inclusion of community and other meetings on weekly calendars
Secretary of the District Elaine Boehme reported that an upcoming events log will
be attached to the e-mail distributing Board calendars. This will facilitate Board
Members seeing upcoming events at a glance, as well as receiving flyers as they
are issued.
d. BOARD MEMBERS
1) Member McGill reported on the June 2, 2008 Budget and Finance
Committee meeting and summarized the Action Summary.
2) President Lucey reported on the May 22, 2008 Human Resources
Committee meeting and summarized the Action Summary.
3) Reports on miscellaneous business meetings attended by Board
Members.
Book 58 Page 9
Board Minutes of June 5, 2008
Member McGill reported on his attendance at the California Special
Districts Association (CSDA) Training, Mountain View Sanitary District
Anniversary celebration, EBMUD Breakfast, and Contra Costa Council
Installation Dinner. He announced he will be attending the Contra Costa
Mayors' Conference dinner on June 5, 2008.
Member Hockett reported on her attendance at Contra Costa Council
Water Task Force meeting, the EBMUD Breakfast, the Contra Costa
Council Major Drivers meeting, the Contra Costa Council Installation
Dinner. She announced she will be attending the Contra Costa Mayors'
Conference dinner on June 5, 2008.
President Lucey reported on his attendance at the City of Orinda City
Council meeting. He announced that he will attend the Local Agency
Formation Commission (LAFCO) meeting on June 11, 2008 and plans to
attend the next Contra Costa Special Districts Association (CCSDA)
meeting.
4) Announcements
President Lucey asked Director of Administration Randy Musgraves to
distribute information regarding Proposition B for the City and County of
San Francisco, "Changing Qualifications for Retiree Health and Pension
Benefits and Establishing a Retiree Health Care Trust Fund."
Member Hockett announced that she is participating in a project of the
CASA Executive Board to develop a branding manual for the wastewater
industry.
Member Menesini announced the upcoming Environmental Alliance
meeting on Monday, June 16, 2008. The speaker will be Mitch Avalon,
Deputy Director of Contra Costa County Public Works Department, who
will speak on The Issues of Alhambra Creek Beavers Coexisting in an
Urban Environment.
9. ADMINISTRATIVE
a. ADOPT A RESOLUTION CALLING FOR A NOVEMBER 4, 2008 ELECTION,
REQUESTING CONSOLIDATION OF THE ELECTION OF DISTRICT BOARD
MEMBERS WITH THE STATEWIDE GENERAL ELECTION, AND SETTING
FORTH DISTRICT REGULATIONS FOR CANDIDATE STATEMENTS
Secretary of the District Elaine Boehme reported that, as the Board is aware, there is a
District election coming up on November 4, 2008 to fill three Board Member positions. A
resolution calling for the election and requesting consolidation is required by the Elections
Book 58 Page 10
Board Minutes of June 5, 2008
Code. The Board also must decide what requirements to impose on candidate statements
with regard to cost and number of words.
In 1996, because of the prohibitive cost of candidate statements for the District
compared to other agencies, the Board of Directors determined that each candidate
would only pay $500 towards the cost of the statement and the District would pay the
balance. That has been the practice in each election since that time. In 2006, the total
cost for each statement was $3,620.
In previous elections the candidate statement size was limited to 400 words. In 2002
the County increased the font size of candidate statements, causing statements of more
than 300 words to require two pages, and doubling the cost. For the 2004 election, the
Board voted to reduce the word limit on candidate statements to 300 words, which limits
the size to one page.
The Board has the option of reaffirming the candidate statement cost sharing
arrangement whereby the candidate pays $500, and 300-word limit, or may choose to
make changes.
It is recommended that the Board adopt a resolution requesting consolidation of the
election of District Board Members with the Statewide General Election to be held on
November 4, 2008, and reaffirming or modifying the District regulations for candidate
statements.
It was moved by Member Nejedly and seconded by Member McGill to adopt Resolution
2008-065, calling for the November 4, 2008 election, requesting consolidation of the
election with the statewide election, and confirming prior candidate statement
requirements of 300 words and $500 cost to the candidate; and directing the Secretary
of the District to file the resolution with the County Elections Department and County
Board of Supervisors. Motion passed by unanimous vote of the Board.
10. ENGINEERING
a. APPROVE INITIATION OF NON-TREATMENT PLANT FACILITIES SEISMIC
IMPROVEMENTS PROJECT, DP 8226 TO BE FUNDED FROM THE GENERAL
IMPROVEMENTS PROGRAM; FIND THAT THE PROJECT/AGREEMENT IS
EXEMPT FROM CEQA; AND AUTHORIZE THE GENERAL MANAGER TO
EXECUTE AN AMENDMENT TO A PROFESSIONAL ENGINEERING
SERVICES AGREEMENT FOR THE TREATMENT PLANT EMERGENCY
PREPAREDNESS AND RESPONSE PROJECT, DP 7267, AND THE NON-
TREATMENT PLANT FACILITIES SEISMIC IMPROVEMENTS PROJECT, DP
8226 IN AN AMOUNT NOT EXCEED $127.000 WITH COMPLETE PROJECT
SOLUTIONS, INC.
General Manager James Kelly stated that new California Building Codes were adopted
and were effective in January 2008. Preliminary analysis found that a large seismic
Book 58 Page 11
Board Minutes of June 5, 2008
event could lead to significant damage at the Headquarters Office Building and 4737
Imhoff Place (the Warehouse).
Senior Engineer Ba Than presented a report, stating that the District facilities are
located less than one mile from the Concord fault line. The last major quake on this
fault was in 1955, and was at 5.4 magnitude. The fault has an expected maximum
earthquake magnitude of 6.7. The probability of a 6.7 magnitude earthquake in next 25
years is about 6 percent.
The non-treatment facilities were evaluated, including the Annex Buildings (former
Animal Shelter), 4737 Imhoff Place (Warehouse), and Headquarters Office Building
(HOB). 4737 Imhoff Place key findings were that this type of structure has exhibited
poor performance in earthquakes and would be liable to collapse. The Annex was
assessed as having low to moderate impact from an earthquake. The HOB findings
were that the building does not meet FEMA's Collapse Prevention criteria. It is
recommended that a second opinion be obtained on the HOB to validate the initial
findings. Professor Steve Mahin from UC Berkeley will provide an opinion on the HOB
Phase II findings by the end of June 2008.
Next steps include a Phase II analysis on 4737 Imhoff Place, the Plant Operations
Building undergoing Phase I and Phase II work, and Phase III work for HOB. An
Request For Proposal (RFP) will be prepared for the Treatment Plant facilities for
seismic evaluation. The non-treatment facilities evaluations should be completed by
October 2008.
In summary, Mr. Than stated that the probability of a major quake is low. However, if
there is a major quake on the Concord fault, the potential exists for significant damage
to the HOB and 4737 Imhoff Place. He added that the District is not under any mandate
to upgrade the facilities, and the study results will assist the Board in determining the
next steps. He stated that staff recommends approval of the project and additional
study.
President Lucey stated that he was not aware that there was a seismic issue prior to
this presentation.
General Manager James Kelly reported that the study was done under staff authority
and was just completed.
President Lucey agreed that more information is needed with regard to the HOB, but
questioned the need to spend more money on 4737 Imhoff Place and the former animal
shelter. He stated that the Warehouse may not be worth salvaging and should be
rebuilt if there is an earthquake. He questioned the need for computer modeling and
analysis on 4737 Imhoff Place.
Member McGill stated that staff needs to move ahead quickly and get a better
understanding of the problem.
Book 58 Page 12
Board Minutes of June 5, 2008
President Lucey suggested demolishing the Warehouse in the near future but
proceeding with obtaining additional information on the HOB. He stated that the
Warehouse is old and it is not worth investing more money in it.
Member Menesini expressed concern for possible loss of life if there is a significant
earthquake. He agreed that staff should find out what it would cost to retrofit the
buildings. He suggested utilizing US Geological Survey information for developing the
earthquake magnitudes as they have a lot of information on this topic.
President Lucey inquired whether tenants should vacate 4737 Imhoff Place, and asked
Counsel about the District's liability.
Acting District Counsel Ben Reyes stated that his office could conduct a risk
assessment but added that he preferred not to discuss liability issues in a public
meeting.
Member McGill commented that the data provided indicates the District has a 6 percent
chance of a major quake. He stated that staff needs to determine the aggregate
potential of the critical threshold acceleration that will cause a problem.
Member Hockett commented that the District would be remiss in not taking the
opportunity to address the problem now that is has been presented. She supported
obtaining as much information as possible and then determining how to proceed.
It was moved by Member McGill and seconded by Member Hockett to approve the
initiation of Non-Treatment Plant Facilities Seismic Improvements Project, DP 8226 to
be funded from the General Improvements Program; found that the project/agreement is
exempt from CEQA; and authorized the General Manager to execute an amendment to
a professional engineering services agreement for the Treatment Plant Emergency
Preparedness and Response Project, DP 7267, and the Non-Treatment Plant Facilities
Seismic Improvements Project, DP 8226 in an amount not exceed $127,000 with
Complete Project Solutions, Inc. Motion passed by the following vote of the Board:
AYES: Members: Hockett, McGill, Menesini
NOES: Members: Nejedly, Lucey
ABSTAIN: Members: None
Member Menesini added that he is concerned that the $127,000 may not be sufficient
and asked that staff return to the Board as soon as possible with an update.
Book 58 Page 13
Board Minutes of June 5, 2008
11. TREATMENT PLANT
a. AUTHORIZE THE GENERAL MANAGER TO PREPURCHASE NATURAL GAS
THROUGH A SERVICE AGREEMENT WITH SHELL ENERGY NORTH
AMERICA, LP, (FORMERLY CORAL ENERGY RESOURCES) FOR THE
PERIOD OF JUNE 1.2008 THROUGH DECEMBER 31.2009
General Manager James Kelly stated that natural gas prices have increased 19 percent
over the past year and have continued to increase in recent weeks. Staff has pre-
purchased natural gas through June 2008 at an average price of $8.28 per decatherm,
but has not pre-purchased any natural gas for fiscal year 2008-2009.
Director of Plant Operations Doug Craig presented a report, stating that the District uses
420,000 decatherms of natural gas per year, and $4,548,000 has been budgeted for
2008-09, which is 8.2 percent of the District budget. The cogeneration system uses 95
percent of the natural gas and 90 percent of treatment plant electrical power. No gas
has been pre-purchased for fiscal year 2008-09 and there have been no recent buying
opportunities. The current next-day price for natural gas is $12 or more per decatherm.
He discussed the advantages and disadvantages of cogeneration versus PG&E. PG&E
prices are also unpredictable and cogeneration has additional value for its reliability.
The high gas prices are caused by greater global demand, the weak US dollar, low
liquefied natural gas imports, and weather. Liquefied natural gas imports are down
more than 50 percent from last year.
He concluded his presentation, stating that gas prices are likely to remain high and that
staff will continue to monitor for buying opportunities. If gas prices spike, a
cogeneration shutdown may be necessary. He stated that staff recommends
authorizing the General Manager to pre-purchase natural gas through a service
agreement with Shell Energy for the period of June 1, 2008 through December 31, 2009
at a price not to exceed $12 per decatherm.
It was moved by Member Hockett and seconded by Member Nejedly to authorize the
General Manager to prepurchase natural gas through a service agreement with Shell
Energy North America, LP, (formerly Coral Energy Resources) for the period of June 1,
2008 through December 31, 2009 at a price not to exceed $12 per decatherm. Motion
passed by unanimous vote of the Board.
12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None.
Book 58 Page 14
Board Minutes of June 5, 2008
13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS
Member Menesini requested an update on the findings of the seismic studies and
retrofitting options when completed.
Member McGill requested that an item be placed on the Board agenda to consider
moving Committee Reports to be heard before the Consent Calendar on the Board
agenda, thereby allowing Committee Members to comment on items that they have
reviewed which appear on the Consent Calendar for approval.
General Manager stated that he will present a report on ammonia issues facing the
District on an upcoming agenda.
14. CLOSED SESSION
The closed session was not held.
15. REPORT OUT OF CLOSED SESSION
None.
16. ADJOURNMENT
There being no further business to come before the Board, President Lucey adjourned
the meeting at 3:36 p.m.
eral R. Lucey
President of the Board of Dir ctors,
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 58 Page 15