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HomeMy WebLinkAboutBOARD MINUTES 09-15-05 20 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 15, 2005 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 Thursday, September 15, 2005. President Hockett called the meeting to order and requested that the Secretary call roll. I 1. ROLL CALL PRESENT: Members Boneysteele, Lucey, Menesini, Nejedly, Hockett ABSENT: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS/PROMOTIONS Board Members welcomed newly-hired Maintenance Crew Members I Greg Collins and Les Szmidt, and congratulated Maintenance Crew Leaders Chris Johnson, Ed Silva and Lance Miller on their recent promotions. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS I a. ADOPT RESOLUTION 2005-090 ENCOURAGING AND PROMOTING POLLUTION PREVENTION AND DECLARING SEPTEMBER 19-25. 2005 AS POLLUTION PREVENTION WEEK IN THE CENTRAL CONTRA COSTA SANITARY DISTRICT IN SUPPORT OF NATIONAL POLLUTION PREVENTION WEEK General Manager Charles Batts stated that, each year, the District adopts a resolution to encourage and promote pollution prevention in its service area. This year, National Pollution Prevention Week is from September 19 through the 25th. The District has numerous programs and activities that promote pollution prevention, including the Household Hazardous Waste Collection Facility, Student Education programs, the work of the Source Control section, and the Green Business Program. It was moved by Member Menesini and seconded by Member Lucey to adopt Resolution 2005-090, declaring Pollution Prevention week in the District. b. Presentation of 2005 Pollution Prevention Awards Following a report from Communication Services Manager Harriette Heibel and Source I Control Superintendent Tim Potter, Pollution Prevention Awards were presented to: Central Contra Costa Transit Authority; Alldura (Mobile Washer); Environmental Surface Cleaning (Mobile Surface Washer); Parker West International, LLC (Mobile Pressure Washer/Wastewater Recycling/Distributor of Equipment); Customer Care Cleaners (Dry Cleaner); and dentists Dr. Richard Bellagamba; Dr. Gary Cappelletti; Dr. William Clements; Diablo Dental Specialists; Diablo Valley Dental Care; Dr. Robert Morrish; Dr. Kenneth Tittle; Dr. Randall Wiley and Dr. Donald Schmitt in recognition of their efforts in implementing pollution prevention practices. 9-15-05 I I I 21 Roussell's Auto Service received an Honorable Mention, and Contra Costa County Environmental Health (ServSafe Program) received a Special Commendation. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly to approve the Consent Calendar, consisting of Items a. through e., as recommended, to adopt resolutions, and to authorize recordings. Motion passed by unanimous vote of the Board. a. Adopt Resolution 2005-091 accepting a grant of easement for sewer purposes for the Alhambra Valley Sewer Project, Project No. 5919 and authorize staff to record documents with the Contra Costa County Recorder. On another subject related to the Alhambra Valley, Environmental Services Division Manager Curt Swanson responded to questions from Member Menesini regarding the exact location of the trunk sewer through National Park Service property and whether the National Parks Service has agreed to it. Mr. Swanson stated that the Parks Service is willing to provide the District with a license, rather than an easement, and District staff is in the process of working with the Parks Service on the project. b. Adopt Resolutions 2005-092. 2005-093. 2005-094. 2005-095. and 2005-096 accepting five grants of easement for sewer purposes for the Walnut Creek Sewer Renovation - Phase 3 Project, Project No. 5929 and authorize staff to record documents with the Contra Costa County Recorder. c. Accept contract work for the Contra Costa Boulevard Sliplining Project, Phase 2, District Project 5931, and authorize the filing of the Notice of Completion with the Contra Costa County Recorder. d. Approve the Walnut Creek Sewer Renovations, Phase 4 Project, DP 5826, for CEQA/Permitting Purposes and direct staff to file a Notice of Exemption with the Contra Costa County Clerk. e. Establish October 20, 2005 at 2:00 p.m. as the date and time for a public hearing to consider adoption of a resolution of necessity to acquire easements by condemnation for the Alhambra Valley Sewer Project, District Project 5919. AYES: NOES: ABSENT: Members: Members: Members: Boneysteele, Lucey, Menesini, Nejedly, Hockett None None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 6. REPORTS a. GENERAL MANAGER 1 ) Shell Pioeline Uodate General Manager Charles Batts stated that, after a presentation on the possible sale of the Shell Pipeline to East Bay Municipal Utility District (EBMUD), the Board requested an update on staff's investigation of the uses for and value of that asset. A memo was supplied to the Board with the agenda package, which summarizes staff's progress to date. Director of Engineering Ann Farrell presented a report, describing the acquisition of the pipeline in 1994 and the limitations on its future use imposed by Shell. She stated that it was purchased "as is" from Shell, and it was later discovered that several sections of the pipeline were missing. Many of the 9-15-05 22 locating stations are not operable, and the cathodic protection system has not been maintained. The portion of the pipeline owned by the District extends from Highway 4 to the Alameda County line. Another portion of the pipeline located in Oakland was sold, and the remainder is still owned by Shell. The exact location of the pipeline is not known. She stated that EBMUD has indicated that they are not interested in purchasing or using the pipeline to transport recycled water. Shell has indicated verbally that that they are not opposed to the District selling the pipeline, but only for non-petroleum uses. Shell also indicated they may have an interest in purchasing the pipeline from the District. I She stated that the right-of-way has the greatest value if sold with the pipeline. Some of the easements have terminated, and in some locations the pipeline is located outside the prescribed easement. If the District were to sell the pipeline, it would most advantageous to sell it "as is". If the District chose to abandon the pipeline, the right-of-way may potentially have some value. Ms. Farrell described three possible options: to retain the pipeline without determining its precise location or performing any maintenance; to retain the pipeline and determine its location and perform required maintenance; or to market the pipeline with the associated right-of-way to determine its value and whether or not it should be sold. She stated that, if so directed, staff could secure the services of someone to market the pipeline. District Counsel Kent Aim stated that, in his opinion, the pipeline clearly has some value, but exactly how much it is worth is very hard to determine. There may be some locations where the value is substantial, and others with little or no value. Member Lucey stated that a value has still not been determined for the pipeline. He stated that he assumed that there would be interest in the pipeline from fiberoptic companies. I District Counsel Kent Aim stated that the District should obtain a letter from Shell stating that they are agreeable to the sale of the pipeline and setting forth any residual conditions. Member Menesini inquired whether there would be merit in retrieving the ten- inch steel pipe from the pipeline for scrap. Ms. Farrell indicated that such recovery would involve digging up residential areas along the pipeline. Member Nejedly stated that, in his opinion, it would be worthwhile to market the pipeline to determine if there is interest in purchasing it. He indicated that he feels the pipeline is an asset to the District and should be maintained, and expressed support for determining its exact location. President Hockett said that, although she would not be opposed to retaining the pipeline, she would not support expending District funds to maintain it. She agreed that it would be beneficial to market the pipeline to determine if there are interested buyers and determine an approximate value. Member Boneysteele inquired about alternative technologies for reclaimed water. I Ms. Farrell summarized the direction from Board Members to staff to proceed with marketing the pipeline without any commitment to sell it or expend funds to maintain it, and to determine its value. Staff would secure the services of a realtor to market the pipeline, and would also obtain a letter from Shell. Mr. Aim confirmed that the District would be under no obligation to sell the pipeline. 9-15-05 I I I 23 Member Boneysteele stated that he would not support the direction given to staff by the other Board Members. 2) Status Uodate on Vessinc Sewer Renovation Proiect. DP 5646 General Manager Charles Batts stated that, at the June 2, 2005, Board meeting, the Board awarded a $3.4 million project to Darcy and Harty Construction for the Vessing Sewer Renovation Project. The project involves constructing approximately 14,000 feet of sewer lines. More than half the alignment is in easements, along creek banks, and in private streets. Principal Engineer Tad Pilecki presented a report, describing the need to renovate the sewer due to deteriorating pipe and maintenance requirements. He stated that the approximate cost of the project is $3,400,000, and will replace 14,000 feet of 8-15 inch sewer. He described the location of the project and what has been completed to date. He showed photographs of the work in progress and explained the methods used to install the pipe. He stated that work completed to date totals $1,297,000, with change orders in the amount of $11 ,000. The District has received notice of one potential claim. The project is expected to be completed by the end of 2005. 3) Announcements a) South Clarifier Reoair General Manager Charles Batts stated that staff is still reviewing short- term and long-term solutions for the repair of South-Quad clarifier No. 4. As previously reported to the Board, this clarifier sustained some structural and mechanical damage that occurred during the construction of the Treatment Plant Protective Coating Project. The technical service representative from Dorr-Oliver, the equipment manufacturer's representative, submitted his report on Thursday, September 8, 2005. This report does not recommend a short-term repair because of leakage in the 48-inch feed pipe, possible further settlement of the center column, and the possible operational limitations of the clarifier. The structural and mechanical investigation is continuing, and District Counsel is involved in potential legal aspects of the investigation. The outcome of these investigations will be reported to the Board at a future meeting. b) Uodate on Mercurv Total Maximum Daily Load (TMDL) General Manager Charles Batts stated that, as anticipated, the State Water Resources Control Board remanded San Francisco Water Quality Control Board's Mercury TMDL on September 7,2005, by a 4-1 vote. Many of the reasons for the remand focused on further reductions from point source dischargers such as Central Contra Costa Sanitary District. Specifically, the State Board directed the Regional Water Board to: 1. Modify the wasteload allocations to ensure that they are set at a level that would require municipal and industrial point source dischargers to incorporate the most effective treatment methods and pollution prevention practices practicable for their discharges. 2. Specify monitoring requirements for methylmercury, the form of mercury that bio-accumulates. 9-15-05 24 3. Ensure that wasteload allocations for dischargers do not result in National Pollutant Discharge Elimination System (NPDES) permits that allow discharge concentrations of mercury that contribute to excursions above the mercury water quality objective. 4. Ensure wasteload allocations take into account the significant variation in effluent quality among the various dischargers and that dischargers of high quality effluent should be recognized for their efforts, while dischargers of lower quality effluent should be required to perform better. I The State Board gave the Regional Water Board nine months to revise the TMDL and resubmit it to the State Board. Staff and Counsel are reviewing the Remand and will provide more information to the Board at a future meeting. The impact of the Remand is to push the District to pursue implementing pollution prevention programs for dental offices and to focus on additional treatment of the incinerator scrubber water to remove mercury. c) Particioation in Trade Fairs in Seotember General Manager Charles Batts stated that Central Contra Costa Sanitary District will be participating in two business trade fairs later this month. On Tuesday, September 22, 2005, the District will have a booth at the Danville Business Fair to be held at the Blackhawk Shopping Plaza. On Monday, September 26, there will be a booth at the Walnut Creek Business Fair at Scotts Garden. Both events are from 5:00 to 7:00 p.m. b. COUNSEL FOR THE DISTRICT I Counsel indicated that the issue of the "appealability" of the recent State Board Remand of the Mercury TMDL is under review by his office and other qualified attorneys. If it is concluded that taking an appeal of the decision is legally permissible at this stage, substantial work would be required on that appeal prior to the next Board meeting in order to meet the filing requirements. The Board would, however, be given the opportunity to decide whether it wished to file the appeal at the next meeting. c. SECRETARY OF THE DISTRICT None d. BOARD OF DIRECTORS 1) Member Lucey, Chair of the Budget and Finance Committee, reported that the Committee reviewed the Expenditures and took no exception. Member Lucey noted that one of the expenses was for the purchase of a wading pool to serve as a temporary replacement for a private turtle pond damaged during a construction project. It was moved by Member Lucey and seconded by President Hockett to I approve the Expenditure List dated September 15, 2005, including Self Insurance Check Nos. 102254 to 102259, Running Expense Check Nos. 157190 to 157355, Sewer Construction Fund Check Nos. 27956 to 28004, Payroll Fund Manual Check Nos. 49051 to 49065 and Payroll Regular Check Nos. 55556 to 55589 as recommended. Motion passed by unanimous vote of the Board. 2) Member Nejedly reported on the August 8, 2005 Personnel Committee. 9-15-05 I I I 25 3) Announcements Member Menesini announced upcoming Environmental Alliance meetings on September 19, 2005, regarding the ecology of the San Francisco Bay, and on October 17, 2005, regarding the science of odors. Member Lucey thanked Member Menesini for his efforts in the area of pollution prevention and control. 7. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE PROFESSIONAL SERVICES AGREEMENTS WITH TRANSDYN CONTROLS AND MONTGOMERY WATSON HARZA FOR THE IMPLEMENTATION OF THE PLANT CONTROL SYSTEM, DISTRICT PROJECT 7204 General Manager Charles Batts stated that the District's treatment plant was put into operation in 1976 and was one of the first computer-controlled treatment plants in the nation. The plant's original central computer system was installed to provide all of the automatic controls for the treatment plant processes. For nearly 30 years, treatment plant staff has upgraded and maintained the Modcomp control system. The control system now needs to be replaced, and staff has put considerable time and effort into finding the right company for this project. Factors in the decision included technical performance, future support, hardware required, and cost. It was moved by Member Boneysteele and seconded by Member Menesini to authorize the General Manager to execute professional services agreements with Transdyn Controls in the amount of $1 ,350,000 to provide proprietary software and system integration, and with Montgomery Watson Harza in the amount of $200,000 to support the implementation of the plant control system and preparation of construction documents for the modification of the control room. Motion passed by unanimous vote of the Board. 8. APPROVAL OF MINUTES It was moved by Member Lucey and seconded by President Hockett to approve the minutes of August 11, 2005. Motion passed by unanimous vote of the Board. 9. BUDGET AND FINANCE a. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY. General Manager Charles Batts stated that the District's Investment Policy is reviewed by the Board on an annual basis. Also, the Board receives an Investment Report from staff on a monthly basis. The investment portfolio of the District is managed to ensure liquidity to meet cash-flow needs, safety to ensure that investments are sound and could be readily converted to cash if needed without causing a material change in the value of the portfolio, and investments that will attain a reasonable rate of return. It was moved by Member Menesini and seconded by Member Nejedly to approve the Statement of Investment Policy as recommended. Motion passed by unanimous vote of the Board. b. ADOPT RESOLUTION 2005-097 ESTABLISHING THE 2005-2006 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION. General Manager Charles Batts stated that the District is required to establish its appropriations limit each year in accordance with the California Constitution. The appropriations limit is increased annually by a factor comprised of the change in population, combined with either the change in California per capita personal income or the percentage change in the local assessment roll from the preceding year due to local nonresidential construction. He stated that the Board must select between the per capita personal income, 9-15-05 26 or the percentage change in the local assessment roll due to local nonresidential construction, by a recorded vote. Staff recommends selection of the per capita personal income percentage change for use in computing the appropriations limit this year as it is the greater of the two. This will allow for a larger limit on the District's proceeds of taxes. He stated that the Board is being asked to adopt a resolution establishing the appropriations limit at $62,754,378 for the 2005-2006 fiscal year and to select the California per capita personal income percentage change for use in computing the appropriations limit. It was moved by Member Nejedly and seconded by President Hockett to adopt Resolution I 2005-097, establishing the Sewer Construction Fund appropriations limit in the amount of $62,754,378 for FY 2005-06 as recommended, and selecting the California per capita personal income percentage change selected for use in computing the Appropriations Limit. Motion passed by unanimous vote of the Board. c. RECEIVE ADJUSTED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 2005. General Manager Charles Batts stated that the Board has received the final pre-audit financial statements for the 2004-2005 fiscal year. These financial statements have been given to the external auditors. The final audit results will be presented to the Board at the October 20, 2005, Board Meeting. Controller Debbie Ratcliff presented the year-end figures for the Operations and Maintenance (O&M) and Self Insurance Funds. She stated that the depreciation entry has been calculated and added to the figures presented to the auditors. She compared the actual O&M 2004-05 figures to the budget, stating that additional revenue of $117,000 has been achieved, comprised mainly of additional Sewer Service Charge funds and the sale of the Danville property. The actual fund balance at year-end is $10,893,000. She described expense categories under and over budget, stating that, all categories combined, a total savings of $1 ,596,000 was achieved. I With regard to the Self-Insurance Fund, actual revenues are $360,000, which is $37,000 over budget, primarily due to higher interest income. Total expenses are at $746,000, which is $327,000 less than budgeted, due to fewer losses. Revenue over expenses shows a deficit of $386,000, reducing the fund balance to $3,537,000. d. CAPITAL IMPROVEMENT BUDGET YEAR END REPORT. General Manager Charles Batts stated that the year-end financials for the 2004-05 fiscal year Capital Improvement Program have been reviewed and compared with budget. This year staff was successful in spending the targeted capital expenditure amount. Again this year, capital revenue was significantly higher than budgeted due to the unanticipated pace of development in the Dougherty Valley. Director of Engineering Ann Farrell summarized capital expenditures and revenues and reviewed major project expenditures in the treatment plant, collection system, general improvements, and recycled water programs. She stated that about $26.5 million was spent in FY 2004-05, which is very close to the targeted expenditure. She stated that revenues were higher than anticipated due to capacity fees received from the Dougherty Valley, which were received in a shorter time period than originally anticipated. She listed major project expenditures in the Treatment Plant Program, adding that the I Scrubber Pumps Renovation Project was eliminated due to high cost. Several projects were delayed, and others advanced. With regard to the Collection System Program, several projects were completed under budget. The M-3 Sag Renovation Project was over budget due to an unfavorable bid and the discovery of contaminated soil. 9-15-05 I I I 27 Ms. Farrell summarized expenditures in the General Improvements Program and Recycled Water Program. Due to the increased revenue from the Dougherty Valley connections, $3 million will be returned to the sewer construction fund, bringing the balance up to approximately $58 million. e. RECEIVE JULY 2005 FINANCIAL STATEMENT Controller Debbie Ratcliff presented a brief report on the Running Expense Fund, the Sewer Construction Fund and Temporary Investments. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 12. CLOSED SESSION: The Board recessed at 3:50 p.m. to reconvene in Closed Session in the Caucus Room to discuss labor negotiations pursuant to Government Code Section 54957.6 District Negotiators: Human Resources Manager Cathryn Freitas and Director of Administration Randy Musgraves; Employee Organization: Management Support Confidential Group (MS/CG) 13. REPORT OF DISCUSSIONS IN CLOSED SESSION: None. 14. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 4:00 p.m. COUNTERSIGNED: ~/~t/L/~-~h(~ resident of the Board of Directors,' Central Contra Costa Sanitary District, County of Contra Costa, State of California ~~ Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California 9-15-05