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HomeMy WebLinkAboutBOARD MINUTES 10-06-05 28 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 6, 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, October 6, 2005. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members Boneysteele, Lucey, Menesini (arrived at 3 p.m.), 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 congratulated Rob Robinson on his promotion to Maintenance Crew Leader. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS a. RECEIVE 2004 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) AWARD General Manager Charles Batts stated that, for the fifth year in a row, the District's Finance and Accounting Division has received an award for the District's Comprehensive Annual Financial Report. The report received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. Controller Debbie Ratcliff provided information regarding the award and presented it to the Board. She commended Finance Administrator Collette Curtis-Brown and Accountant Thea Vassallo on their hard work. 4. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Nejedly to approve the Consent Calendar, consisting of Items a. and b., as recommended, to adopt resolutions, and to authorize recordings. Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Boneysteele, Lucey, Nejedly, Hockett None Menesini a. Adopt Resolution 2005-098 accepting public sewer improvements and an offer of dedication from UDC Homes, Inc. for an easement shown on the recorded final map of Subdivision No. 8061 in the City of Walnut Creek (Job 5313) and authorize staff to record documents with the Contra Costa County Recorder b. Adopt Resolution 2005-099 accepting public sewer improvements and an offer of dedication from Russell J. Bruzzone, Inc. for an easement shown on the recorded 1 0-6-05 I I I I I I 29 final map of Subdivision No. MS 602-96 in the Town of Moraga (Job 5318) and authorize staff to record documents with the Contra Costa County Recorder 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Items 8.a. and 7.a. were taken out of order. 6. REPORTS a. GENERAL MANAGER 1 ) Orinda Storm Drain Assessment Update General Manager Charles Batts stated that, as previously discussed with the Board, an assessment of the storm drains in Orinda was undertaken to determine where storm drains pose a landslide risk to District sewers. The project included a study to identify, visit, and evaluate sites based on the potential risk. Assistant Engineer Clint Shima summarized the results of the risk assessment study. He described the problems caused by the landslide at St. Stevens Drive in Orinda in 2002. He stated that a study has been conducted to find and prevent similar events from happening. The location of the study was the city of Orinda, a hilly area prone to landslides with older sewers and storm drains. He described the approach for the study, stating that 254 sites were visited to evaluate potential risk. Staff looked for evidence of previous failure, erosion, and the potential for future erosion and failure. The sites were rated on a scale of 1-5, with 1 being classified as "no perceived slide risk" and 5 as "immediate action needed". Of the 254 sites inspected, 12 sites were rated as 2, and 2 sites rated as 3. The remainder were rated 0 or 1. He stated that the next step is to coordinate the study results with CSO, to repair both classification 3 sites and to monitor the classification 2 sites. Staff plans to conduct similar studies in Lafayette and Moraga. President Hockett suggested sharing the results of the study with the City of Orinda. Member Menesini stressed that soils studies are an important factor when evaluating potential erosion and slides. 2) Solids Handlino Facilities Plan Update General Manager Charles Batts stated that the District's Solids Handling Facilities Plan was last updated in May 1990. Since then, there have been significant changes, including existing process optimization, new regulatory concerns, rising fuel costs, and population growth. The recent Solids Handling Facilities Plan Update examined the impact of all of these changes and determined what upgrades or changes may be needed in the Solids Handling Facilities to comply with regulatory requirements, while still meeting capacity demands at the most economical price. Assistant Engineer Nancy Kelly presented an update on the Solids Handling Facilities Plan. She described the background of the plan, stating that it was last updated in 1990. She explained projected population growth and solids production through 2035. With these projections in mind, the ancillary solids handling equipment capacity was evaluated and recommendations developed. These include improvements to the cake hoppers and cake pumps, polymer addition to dissolved air flotation thickener tanks, and improvements to the emergency sludge storage tank mixing systems. The estimated capital cost for these improvements is $2-3 million. Senior Engineer Randy Schmidt presented a report regarding the multiple hearth furnace. He stated that Gene Waltz of Incinerator Rx and Bill Mansfield from Industrial Furnace Company were selected to prepare an assessment of the equipment. The assessment indicated that there are 25+ years of life left in the steel outer shell, the internal refractory and the waste heat recovery boiler. There are 1 0-6-05 30 underlying assumptions to that finding, which are that the current level of maintenance be sustained, the rotation of incinerators every 12-18 months continue, and that inspections and repairs be performed during rotation. This will minimize costs and maximize the life of the furnaces. He described projected solids production and capacity of the furnaces through 2035. To increase capacity from 50 to 55 dry tons per day, recommendations are: . Replace oversized afterburners with smaller high mix/low Nox burners . Replace dry cyclones . Replace existing auxiliary burners with smaller high mix/low Nox burners . Replace wet scrubber with a venture pak scrubber . Increase the size of the induced draft fan. I The estimated cost to do that for both furnaces is estimated to be $4 to $5 million. He confirmed that some of that is budgeted and some is not. Budget figures will be revised to reflect these estimates. He stated that emergency and non-routine operation recommendations include starting the design of the drive-thru sludge truck loading station, pursing a contract with EBMUD for raw dewatered sludge, determining lime dosage to stabilize biosolids, or revising the contract with Keller Canyon for disposal to reflect State law requirements for Class B biosolids for landfill disposal. The estimated capital cost is $4-6 million. He compared long-term solids handling options and annualized cost analyses, stating that staff recommends continuing with incineration unless the regulatory climate changes. He summarized the total estimated capital cost of continued incineration: ancillary solids equipment modification - $2-3 million; increased furnace capacity modifications - $4-5 million; emergency/non-routine operation modifications - $4-6 I million, for a total of approximately $10-14 million. Mr. Schmidt responded to questions from Member Menesini about the time line for the program and details about the proposed modifications. 3) General Manager Charles Batts announced that the District has purchased 73 percent of the natural gas required for fiscal year 2005-2006 at an aggregate price of $7.02/decatherm (DT). With the disruptions to the natural gas supply caused by hurricanes Katrina and Rita, the spot market price for natural gas has currently increased to $11 to $12 per decatherm. Staff intends to prepurchase the remaining natural gas for fiscal year 2005-2006 in the near future. He stated that it seems likely that prices will remain high through the winter, with projections ranging from $10 per decatherm for a warm winter to $23 per decatherm for a cold winter. Although the District does not purchase natural gas from PG&E, there is a proposed request for a 70 percent increase in the natural gas price to consumers. He stated that the landfill gas contract with Bulldog Energy will expire on November 1, 2005. The current contract provides for a 42 percent discount on the current natural gas purchase price. Bulldog has indicated that they wish to submit a proposal to modify the pricing structure in the existing contract. Staff I will evaluate the proposal upon receipt and will update the Board at a future Board meeting. 4) General Manager Charles Batts announced that the District's Source Control and Pollution Prevention programs won first place for the U.S. EPA Pretreatment Program Excellence Award - the District's third award. The District's program competed in the large program category along with pretreatment programs from Los Angeles, Seattle, Phoenix, and Chicago. The Regional Board and U.S. EPA Region 9 nominated CCCSD for the award. In addition to the efforts of the Source Control Section, the award application 1 0-6-05 I I I 31 packet featured pollution prevention program activities implemented by the Source Control Section, Environmental Services Planning Section, Household Hazardous Waste, and Communication Services Sections. 5) The EPA award will be presented at the Water Environment Federation Technical Education Conference in Washington, D.C. at the end of October. Source Control Program Superintendent Tim Potter will attend the award ceremony, along with General Manager Chuck Batts. Three other District staff members are attending the conference. The additional conference attendees are Director of Operations Jim Kelly, Senior Engineer Sa Than, and Associate Engineer Tom Godsey. Board Members interested in attending the award ceremony should notify Secretary of the District Elaine Boehme. The award will be formally presented to the Board at a November Board meeting. General Manager Charles Batts announced that there have been inquiries about providing aid to the areas affected by hurricanes Katrina and Rita, especially in the areas of infrastructure repair and operation. CASA has discussed a coordinated program, but little has been initiated. The District is also working with the EBMUD with the thought of aiding through their efforts. Part of the problem is that the agencies ravaged by the hurricanes need trucks and equipment that is difficult to provide from California. Many of their needs are workmen to repair their systems, and people familiar with government FEMA reimbursements. These events have forced the District to evaluate its own plans and resources in case of a similar emergency or disaster. A complete reevaluation of our emergency response program and resources is now being undertaken. 6) General Manager Charles Batts announced that next week, the District will send informational letters to approximately 10 neighborhoods in the Alhambra Valley announcing that the District is planning to construct the Alhambra Valley trunk sewer during 2006. Once this trunk sewer is completed, sewer mains can be extended to serve individual neighborhoods. This letter will describe the process for designing and constructing public sewer main extensions from the Alhambra Valley trunk sewer. District staff will seek out leaders to organize the neighborhood projects. Over the next few months, staff will conduct informational meetings to discuss the sewering process and identify the level of interest in extending sewers to the various neighborhoods. Member Lucey inquired about the timeline for neighborhood meetings 7) General Manager Charles Batts announced the 2005 Service Awards Luncheon to be held at Vic Stewart's Restaurant in Walnut Creek on Wednesday, November 9, at 11 :30 a.m. This year awards will be given to 49 employees in recognition of their years of service to the District. 8) General Manager Charles Batts announced that the District has received a request from Mountain View Sanitary District for help administer their Source Control program, including pollution prevention and pretreatment activities. Mountain View's program has been managed by one part-time position that has been filled by Leslie Engler. Ms. Engler is retiring at the end of this calendar year. After considering alternatives, MVSD staff identified partnering with Central San to be the best alternative, due in part to the District's high quality programs. The scope of services will still need to be determined, but based on preliminary discussions the services would include the Annual Pollution Prevention Program Report and conducting pretreatment inspections of businesses. The District believes it could perform this work with existing staff. Many of the businesses in Mountain View's service area are already inspected under the stormwater program by Central San inspectors. Source Control inspectors also perform similar tasks for the City of Concord under contract. 10-6-05 32 MVSD has asked District staff to help prepare a formal scope of work and a budget. With Board concurrence, staff will continue discussions with MVSD to determine the feasibility of such a partnership. If it appears to be feasible, a proposal will be presented to the Board at a later time, and then to MVSD for their approval. b. COUNSEL FOR THE DISTRICT Counsel for the District Kent Aim presented a status report on the Mercury TMDL remand, stating that no appeal is recommended at this time. He also stated that the 30-day statute I of limitations does not appear to apply in this case, so more time is available for appeal. He stated that a letter is being requested on behalf of all BACW A members stating that no rights or claims are waived by deferring legal action until final action taken by the State Board. . c. SECRETARY OF THE DISTRICT The Secretary of the District announced the Capital Improvement Budget Workshop to be held on November 10, 2005, and the Annual Giving Campaign breakfast scheduled for November 16, 2005. 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. It was moved by Member Lucey and seconded by President Hockett to approve the Expenditure List dated October 6, 2005, including Self Insurance Check Nos. 102260 to 102265, Running Expense Check Nos. 157356 to 157612, Sewer Construction Fund Check Nos. 28005 to 28061 as recommended. Motion passed by unanimous vote of the Board. I 2) President Hockett and General Manager Batts reported on the September 22, 2005 Sanitation and Water Agencies of Contra Costa County Meeting, which included a tour of the Los Vaqueros Reservoir. 3) Announcements Member Menesini announced upcoming Environmental Alliance meeting on October 17, 2005, regarding the science of odors. 7. HUMAN RESOURCES This item was taken out of order. a. ADOPT SALARY MODIFICATIONS FOR SPECIFIED POSITIONS AS RECOMMENDED IN MANAGEMENT SUPPORT/CONFIDENTIAL GROUP (MS/CG) SALARY SURVEY AND AMENDED JOB CLASSIFICATION DESCRIPTIONS General Manager Charles Batts stated that the Board has received the consultant's recommendations for the MS/CG salary survey. The joint committee, comprised of management and MS/CG representatives, did not agree on the recommendations; there were several points of disagreement including the definition of "base salary." Five of the surveyed agencies require employees to pay a percentage of retirement cost, and at least one agency has an agreement with its employees to include the total percentage as salary to "cover" the employee's PERS contribution. As the consultant states on page 3 of her report, ''This practice results in an inflation of true pay data as many employers in the past have paid employees base salary and, in addition, "picked up" the employee's share of PERS as a separate benefit." I Staff believes using salary data that is "artificially inflated" is contradictory to the definition of salary or "market value." Mr. Tad Pilecki, as President of the MS/CG, made a presentation 1 0-6-05 I I I 33 to the Board Personnel Committee at its August meeting to explain MS/CG's preference to use the salary data, which includes the pay for the enhanced retirement benefit, rounding up the adjustments, increasing employee/supervisor differentials, and creating certain "equity" adjustments for members of his bargaining unit. The full Board has been copied with his proposal. Mr. Pilecki has asked the MS/CG employees to attend today's Board meeting to show support for his position. He stated that staff recommends approval of the consultant's recommendations and adoption of the revised job classification descriptions. If approved, the salary increases will take effect on October 18. President Hockett announced that the Board just received copies of a letter dated October 6,2005 from Ms. Lisa Pau, attorney representing MS/CG. Members Lucey and Nejedly stated their objection to receiving correspondence at the last minute, allowing no time to review it. The Board took a recess at 2:44 p.m. to read the letter and reconvened at 3:09 p.m. Tad Pilecki, President of MS/CG, thanked the Board and the Management Team for their professionalism and cooperation. He introduced the new incoming MS/CG President Paul Louis. He apologized for the late delivery of the letter from his group's attorney. Paul Louis stated that he spoke with General Manager Chuck Batts during the recess and both parties agreed to propose that the matter be continued to October 20 or November 3 to allow for more discussion and to meet again with the management members of the Committee. He stated that the requirements of the date of October to enact this side letter can be held in abeyance and hopefully an amicable conclusion can be reached. Upon questioning by District Counsel Kent Aim, Mr. Louis confirmed that the date of October 18 contained in the side letter would be waived and discussed with the joint committee. Member Boneysteele stated that he concurs with the last paragraph of the letter in question, indicating that there may be benefit in utilizing the services of an outside agency to reach a decision. Member Lucey stated that the paragraph to which Member Boneysteele referred states that MS/CG is prepared to take legal action, not utilize the services of an outside agency. He stated that there are several things contained in the letter with which he disagrees, and they will be passed on to MS/CG through staff. It was moved by Member Nejedly and seconded by Member Lucey to continue the. item to October 20, 2005, with the October 18 effective date stipulated in Side Letter waived. Motion passed by unanimous vote of the Board. 8. CORRESPONDENCE This item was taken out of order. a. RECEIVE LETTER DATED SEPTEMBER 6.2005 FROM JEFFREY SUPRAN. ORINDA RESIDENT, REQUESTING ESTABLISHMENT OF A REBATE PROGRAM FOR DISTRICT PROJECT NO. 2876 - OCTOBERJ 978 General Manager Charles Batts stated that the District received a letter from Mr. Jeffrey Supran of Orinda requesting that the Board of Directors overturn a staff decision not to create a reimbursement account for a sewer main extension that he installed in 1978. Staff did not create a reimbursement account, formerly called a rebate account, for his sewer project because cost and other information was not provided within 15 days of completion of construction. In 1989, staff advised Mr. Supran that there was no reimbursement account for his sewer project because information was not provided in a timely manner. 1 0-6-05 34 At this time, another neighbor is planning to extend the public sewer from where Mr. Supran's project ended. Mr. Supran is still interested in having a reimbursement account. He stated that Mr. Supran has asked to speak to the Board about this issue. Associate Engineer Michael Penny presented a report regarding the sewer extension project and why a reimbursement account was not established earlier. He stated that the project was constructed in 1978, and initial paperwork was submitted by Mr. Supran concerning waiver of rights to four properties. On October 19, 1978 the District sent him a letter requesting additional information in order to finalize establishment of the reimbursement account. No response was received and no account was set up. In July I 1989 one of the properties wishing to connect inquired about fees, and staff indicated that there was no reimbursement account and no fees would be collected. On July 10,1989 Mr. Supran sent a letter saying that he thought an account had been set up, and he provided the District with the information. On August 30, 1989 staff sent a letter to Mr. Supran confirming that no reimbursement account had been set up as information had not been provided in a timely manner. No further correspondence was received until July 2005, when a neighbor wished to hook up and Mr. Supran wanted to be reimbursed. Once again staff explained that there was no reimbursement account and Mr. Supran was provided copies of all prior correspondence on the matter. The matter is now before the Board for consideration of Mr. Supran's request to establish a reimbursement account. Mr. Supran addressed the Board in support of his request. He confirmed that he owned the properties for which waivers were requested. He stated that he did not receive the letter sent by the District dated October 19, 1978. In 1989 he received a letter stating that a reimbursement account had not been established. He disputed the claim that necessary information was not submitted, and stated that the District had all the information it required to establish an account. He requested that the Board direct staff to establish the reimbursement account. In response to questions, Mr. Supran confirmed that there are only two properties left to hook up. Member Lucey asked staff if all the necessary information had been submitted. Mr. Penny I responded that it had not. Member Boneysteele inquired about the options available to the Board. He stated that an appeal hearing may be the appropriate way to address the request. Mr. Supran responded to questions from Board Members, stating that potential rebates amount to approximately $5,000-$6,000. President Hockett stated that she reviewed the file. She questioned why Mr. Supran did not provide the requested information in 1989, stating that she concurs with the staff recommendation to deny Mr. Supran's request. Member Lucey stated that it appears to be a matter of credibility and expressed confidence in the veracity of District staff's statements. He expressed support for the staff recommendation and stated that he did not want to delay matters by holding a hearing. It was moved by Member Boneysteele to direct the District Counsel to engage the services of a hearing officer to review the matter and make a recommendation to the Board. The motion died for lack of a second. It was moved by Member Lucey and seconded by Member Nejedly to uphold the staff recommendation and deny the request to establish a reimbursement account. Motion passed by the following vote of the Board: I AYES: NOES: ABSENT: Members: Members: Members: Lucey, Nejedly, Hockett Boneysteele Menesini 1 0-6-05 I I I 35 9. APPROVAL OF MINUTES a. MINUTES OF SEPTEMBER 1. 2005 It was moved by President Hockett and seconded by Member Menesini to approve the minutes of September 1, 2005. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE a. RECEIVE AUGUST 2005 FINANCIAL STATEMENT Controller Debbie Ratcliff presented a brief report on the Running Expense Fund, the Sewer Construction Fund and Temporary Investments. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Staff responded to questions from Member Menesini about the criteria used for determining which agenda items are placed on the Consent Calendar. President Hockett commended Communications Manager Harriette Heibel for preparing a customer-friendly brochure regarding sewer fees for use at the Permit Counter. 13. CLOSED SESSION The Board recessed at 4: 14 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) 14. 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 4:52 p.m. K~4/v:6. itlt/) ~President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: bUYdLo/ Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California 1 0-6-05