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HomeMy WebLinkAboutBOARD MINUTES 11-06-08 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 6, 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, November 6, 2008. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, McGill, Nejedly, Lucey ABSENT: Members: Menesini Secretary of the District Elaine Boehme announced that Member Menesini was unable to attend the Board Meeting, but he stated that he did not wish for any item to be continued. He asked that his support for proceeding with the CSO building be stated. 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 Utility Worker James Alexander. General Manager James Kelly announced the personnel advancement of Mary Bradshaw to Engineering Technician III. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR It was moved by Member Nejedly and seconded by Member McGill to adopt the Consent Calendar as recommended. Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill, Nejedly, Lucey None Menesini Book 58 - Page 106 Board Minutes of November 6, 2008 a. Approve expenditures dated November 6, 2008. Reviewed by Budget and Finance Committee. b. Receive September 2008 Financial Statements. Reviewed by Budget and Finance Committee. c. Approve minutes of October 2,2008 Board Meeting. d. Adopt Resolution 2008-111 establishing regular performance appraisal schedule for Executive Management Team. e. Accept the contract work for the Wet Weather Bypass Improvements (Pre-Load Phase), District Project 7241, completed by Siteworks Construction, Inc., and authorize filing of the Notice of Completion. f. Authorize extension of medical leave of absence without pay for Utility Worker Maralee Davi through December 20, 2008. g. Approve revised funding authorization for the 2008-09 Capital Improvement Budget. Approval recommended by the Capital Projects Committee. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 11.b. was taken out of order due to the presence of Executive Recruiter Bob Murray. Item 8.a. was also taken out of order due to the presence of representatives from Public Agency Retirement Services (PARS) and Union Bank. 5. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. CONSIDERATION OF PROPOSED REVISIONS TO THE DISTRICT TRAVEL POLICY REGARDING THE APPROVAL PROCESS FOR BOARD MEMBER CONFERENCE ATTENDANCE AND REGARDING PROHIBITING THE USE OF PRIVATE LIMOUSINES OR CHAUFFEURED CARS FOR TRANSPORTATION This item was continued from October 16, 2008. General Manager James Kelly stated that three questions were raised at the October 16 meeting and these have been addressed in the Position Paper. One additional minor change has been made to the Travel Policy clarifying the definition of limousines and chauffeured cars. It was moved by President Lucey and seconded by Member Nejedly to approve the revisions to the Travel Policy as proposed. Motion failed by the following vote of the Board: Book 58 - Page 107 Board Minutes of November 6, 2008 AYES: NOES: ABSENT: Members: Members: Members: Nejedly, Lucey Hockett, McGill Menesini Later in the agenda, immediately following Item 7.b., it was moved by Member McGill and seconded by President Lucey to continue this item to November 20,2008, when Member Menesini would be present. Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill, Lucey Nejedly Menesini 6. REPORTS a. GENERAL MANAGER 1) Internal Audit Report General Manager James Kelly stated that the firm of Protivity completed its first internal audit for the District this year. It audited the Sewer Service Charge process and has some recommendations that will improve the existing process. The results were reviewed in detail with the Budget and Finance Committee. Controller Debbie Ratcliff reported that only one exception was found, and staff has already implemented most of the recommendations. These include changes to internal processes to ensure segregation of duties and detailed reviews. All adjustments now require two signatures instead of just one. Staff is also being cross-trained to provide additional resources. In addition, Accounting will conduct transaction audits annually. An internal audit of the Sewer Service Charge process will be conducted every two to three years. 2) General Manager James Kelly announced that Pacific Gas and Electric (PG&E) supplies power to the District's treatment plant at two locations. The main power feed is Substation 82 along Imhoff Drive. PG&E owns and maintains the existing 1 O-megawatt transformer, which has reached the end of its useful life, and they are in the process of replacing the old transformer with a new 16-megawatt unit. A temporary mobile transformer was connected to supply power to the treatment plant and Headquarters Office Building, which will allow removal of the existing transformer. The project consists of removing the old transformer, upgrading the transformer containment area, improving the grounding system, and installing the new transformer and supervisory control and data acquisition (SCADA) monitoring system. Project completion is scheduled for mid-December. Book 58 - Page 108 Board Minutes of November 6, 2008 Installing the new transformer requires two, 12-hour shutdowns, one to connect the temporary transformer and a second to connect the new transformer. During these shutdowns, the District will operate on cogeneration power and a second. smaller PG&E power supply. Backup power will be available from the standby power generators, if necessary. 3) General Manager James Kelly announced that the A-Line Relief Interceptor Project reached two major milestones. First, construction of the twin 48-inch sewer pipes under Walnut Creek Channel is complete. The 48-inch sewers are part of the City of Concord Inter-tie and cross the channel just north of the Water World Theme Park, between Home Depot and the Concord Pump Station. The pipes were installed using the open- cut method and were encased in concrete for protection. District staff worked closely with County Flood Control, State Fish and Game, Regional Water Quality Control Board and East Bay Regional Park District to make sure construction impacts were mitigated and all environmental issues addressed. The recreation trail remained open throughout the work. The second milestone is completion of the 96-inch interceptor pipe installation by tunneling under Meridian Park Boulevard. The 1,700 feet tunneling length is a record for the particular tunneling machine, Earth Pressure Balance Machine (EPBM), and pipe size combination. The pipe was installed on line and grade with minimal disturbance to the Buchanan Fields Golf Course, businesses, and the post office on Meridian Park Boulevard. 4) Staff is pursuing District certification as a green business through the Contra Costa Green Business Program. The effort is led by Assistant Engineer Melody LaBella and staff from all departments are gathering information on current District practices as they relate to the Contra Costa Green Business Program standards. Next, staff will determine what is required to seek a three-year green business program certification. As part of the process, audits will be performed on water and energy usage, along with an assessment of solid waste streams and opportunities for additional pollution prevention. Staff will report progress to the Board periodically. If there are any significant cost impacts, those will be brought to the Board for discussion and guidance as part of the periodic updates. 5) General Manager James Kelly announced that the Collection System Operations Department (CSOD) routinely fields four, two-person crews that operate hydro trucks for sewer cleaning. These trucks require a Book 58 - Page 109 Board Minutes of November 6, 2008 source of water for sewer cleaning, normally potable water from fire hydrants. The trucks are normally filled four to six times per day. Despite a request to be exempted from the recall of East Bay Municipal Utility District (EBMUD) hydrant meters, EBMUD has prohibited the use of hydrant meters for sewer cleaning. EBMUD has required the use of recycled water for preventive sewer maintenance. They have taken similar action with many cities and agencies that do sewer cleaning in the EBMUD service area. At this time, staff believes that the City of Alameda has received an exemption. Recycled water hydrants providing District water are available on Marsh Drive in Pacheco and at the intersection of Boyd Road and Hawthorne in Pleasant Hill. Staff is attempting to site at least one more hydrant in Pleasant Hill but these locations are far from the portions of the District that are in the EBMUD water service area. DERWA (Dublin San Ramon Services District and EBMUD Recycled Water Authority) has provided recycled water hydrants in three locations in San Ramon. These are at Pine Valley Road west of Alcosta Road and in the Dougherty Valley area on New Dougherty Road and Albion Road. EBMUD is constructing a recycled water truck fill site on Mount Diablo Boulevard near the Lafayette reservoir. It will be operating in five weeks. In order to minimize travel time to sources of recycled water, staff plans to rent at least one water tanker truck with driver to bring recycled water to areas of the District that are in EBMUD's water service area for use by our trucks. Staff is investigating the siting of stationary rental tanks at various locations; e.g. Danville, Moraga, and Orinda - most likely a city corporation yard. The aforementioned water tanker truck would fill up from the District's recycled water system and make a circuit filling such tanks for use by the hydro trucks. As CSOD deals with this situation, it may be necessary to use overtime to meet necessary sewer cleaning goals. All of these possible actions will incur expenses that were not anticipated in the fiscal year 2008-2009 budget. EBMUD's recall of hydrant meters is a significant impact on the District's sewer maintenance program. President Lucey asked staff to prepare a letter for his signature to the EBMUD Board of Directors strongly urging them to reconsider the District's request to be exempted from the recall of EBMUD hydrant meters. Book 58 - Page 110 Board Minutes of November 6, 2008 6) General Manager James Kelly announced that Member McGill has completed the four-part Special District Leadership Academy, comprised of: Governance Foundations, Setting Direction and Community Leadership, the Board's Role in Finance and Fiscal Accountability, and the Board's Role in Human Resources. He has also completed over ten hours of elective courses, and has received the Recognition in Special District Governance Certification from the California Special Districts Association in recognition of his completion of the training requirements. 7) General Manager James Kelly announced that the replacement of approximately 450 feet of 6-inch Vitrified Clay Pipe (VCP) has been authorized in easements at 142/148 EI Toyonal in Orinda. The existing line needed extensive repairs and access became available when the homeowner contacted the District to work on the line while construction/remodeling work was ongoing. The District's contractor, California Trenchless Inc. (CTI), is wrapping up construction work on the Camino Pablo Trunk Sewer Improvement & Flush Kleen Force Main Project in the vicinity of EI Toyonal. CTI has agreed to perform the additional pipebursting work at the bid unit price; this cost is $49,500. 8) General Manager James Kelly announced that CCCSD's application for Out of Agency Service Agreements in Alhambra Valley will be considered at the Local Agency Formation Commission (LAFCO) meeting on Wednesday, November 12, 2008 at 1 :30 p.m. in the Board of Supervisors Chamber in Martinez. The application addresses three developed properties just outside the Urban Limit Line (two owned by the Hemplflings on Briones Road and one owned by the Sharmans on Millthwait Drive). As anticipated, the LAFCO Executive Director recommends denial of the agreements, but notes in her staff report that denial does not preclude CCCSD from applying to LAFCO to annex these parcels in the future. Other options presented to LAFCO in the staff report include approving agreements with one or both property owners. Member Hockett stated that she will try to attend the LAFCO meeting on November 12, 2008. Board Members stated they will call members of the LAFCO Board to request their support. 9) General Manager James Kelly announced that the United States Environmental Protection Agency (USEPA) recognizes municipalities and industries for outstanding and innovative technological achievements in wastewater treatment and pollution abatement programs. First and second place national winners received their awards at the annual Clean Water Act Recognition Awards presentation during the Water Environment Federation's Annual Conference, which was held in Chicago, Illinois on October 20,2008. The District received a second place Operations and Maintenance Excellence Award in the category of large secondary Book 58 - Page 111 Board Minutes of November 6, 2008 treatment plants. Board Members Barbara Hockett and Michael McGill, along with General Manager James Kelly and Senior Engineer Randy Schmidt, were present to receive the award, which was presented by USEPA Assistant Administrator for Water Ben Grumbles. USEPA Region 9 Director of Water Division, Alexis Strauss, will attend the District's November 20,2008 Board Meeting to present the award to the full Board. b. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT No reports. d. BOARD MEMBERS 1) Board Member reports on future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses. Member McGill reported that he will be attending the Mayors' Conference on November 6, 2008. 2) Board Member reports on recent meetings for which they received the stipend. a) October 20,2008 California Special Districts Association, Contra Costa County Chapter Meeting - Member Menesini. This report was not given due to Member Menesini's absence. b) President Lucey reported on the October 21, 2008 Outreach Committee meeting and summarized the Action Summary. The Board accepted the report without comments. c) Member Nejedly reported on the October 22,2008 Real Estate Committee meeting and summarized the Action Summary. The Board accepted the report without comments. d) Member Hockett reported on the October 28, 2008 Capital Projects Committee meeting and summarized the Action Summary. The Board accepted the report without comments. e) Member Hockett reported on the October 31,2008 Household Hazardous Waste Committee meeting and summarized the Action Summary. The Board accepted the report without comments. Book 58 - Page 112 Board Minutes of November 6, 2008 f) Member McGill reported on the November 3, 2008 Budget and Finance Committee meeting and summarized the Action Summary. The Board accepted the report without comments. g) Member McGill reported on the November 5, 2008 Recycled Water Committee meeting and summarized the Action Summary. The Board accepted the report without comments. h) President Lucey reported on his attendance at the November 5, 2008 Award Presentation - CCCSD High School Recognition Program for Significant Mercury Reduction, Acalanes Union High School District. 3) Board Member reports on recent meetings or conferences for which the District paid their expenses. a) Members McGill and Hockett reported on their attendance at the October 18-22, 2008 - 81st Annual Water Environment Federation Technical Exhibition and Conference (WEFTEC), Chicago, Illinois. b) Member McGill reported on his attendance at the October 24,2008 California Special Districts Leadership Program (Board's Role in Human Resources), Thousand Oaks, California. 7. ENGINEERING a. AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH CONTRA COSTA COUNTY AND THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY REGARDING AMENDMENT OF SANITARY SEWER EASEMENTS IN THE IRON HORSE CORRIDOR; AND ADOPT A RESOLUTION ACCEPTING THE FIRST GRANT OF EASEMENT PREPARED UNDER THE TERMS OF THE MOU (DISTRICT PROJECT 1541 - PARCELS 8-IHC AND 9B-IHC) General Manager James Kelly stated that the Memorandum of Understanding presented for Board consideration defines the process with the District, County, and the Redevelopment Agency for amending the easement descriptions. The first easement amendment is presented for the Board's consideration. This has been approved by the County Board of Supervisors. Environmental Services Division Manager Curt Swanson presented a report, stating that the District installed sewers in Southern Pacific Railroad's right-of-way under licenses. Subsequently, Southern Pacific ceased rail operations and decided to sell the right-of- way. The County purchased 26 miles of Southern Pacific right-of-way, now known as Book 58 - Page 113 Board Minutes of November 6, 2008 the Iron Horse Corridor, in 1985. At that time, the District purchased 19 miles of easements for existing and future sewers. However, at the time of the purchase, the County and District did not have accurate survey descriptions for property boundaries, existing sewers, or other utilities. The original easements included conditions for adjustments to sewer locations once detailed field surveys were completed. Mr. Swanson stated that the MOU clarifies the intent and process of the District, County, and County Redevelopment Agency with regard to amending locations of the original easements within the Iron Horse Corridor. The targeted completion date is July, 2009. It was moved by Member McGill and seconded by Member Nejedly to authorize the President of the Board of Directors and the Secretary of the District to execute a memorandum of understanding with Contra Costa County and the Contra Costa County Redevelopment Agency regarding amendment of sanitary sewer easements in the Iron Horse Corridor; and to adopt Resolution 2008-112 accepting the first grant of easement prepared under the terms of the MOU (District Project 1541 - Parcels 8-IHC and 9B- IHC). Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill, Nejedly, Lucey None Menesini b. APPROVE REVISIONS TO THE COLLECTION SYSTEM OPERATIONS DIVISION (CSOD) ADMINISTRATION. CREW AND WAREHOUSE FACILITY IMPROVEMENTS PROJECT lDP 8208) General Manager James Kelly stated that, at the October 16, 2008 Board Meeting, Director of Engineering Ann Farrell reported on the Collection Systems Operations Division (CSOD) Improvements Project, which included some items that resulted in cost increases. Staff is seeking Board approval to move forward with a revised project incorporating changes that have occurred since the design started. Director of Engineering Ann Farrell described the history of the CSOD project since April 2005 and the increase in project costs since that time. In 2005, the project cost adjusted to 2008 dollars was $11.7 million, and in August 2008 had increased to $17.7 million. This increase included additional costs to obtain a green building certification, additional costs for inclusion of an Emergency Operations Center, seismic bracing and an emergency generator. The Emergency Operations Center (EOC) added approximately $850,000 to the cost, and the green building component added approximately $300,000. She stressed the importance of the EOC component, particularly since it has been discovered that the Plant Operations Building (POB) Multi- Purpose Room (MPR) would not withstand a serious earthquake. The MPR is currently designated as the EOC. Ms. Farrell responded to questions from Board Members regarding plan completion and contingency funds. Book 58 - Page 114 Board Minutes of November 6, 2008 Member Hockett requested information regarding what the City of Walnut Creek is requiring with regard to the green building certification. It was moved by Member Hockett and seconded by Member McGill to approve revisions to the Collection System Operations Division (CSOD) Administration, Crew and Warehouse Facility Improvements Project (DP 8208) as recommended. Motion failed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill Nejedly, Lucey Menesini It was moved by Member McGill to approve the revisions as recommended, but deleting the Green Building Certification item. There was no second to the motion. Member McGill withdrew the motion. It was moved by Member McGill and seconded by President Lucey to continue this item to November 20, 2008, when Member Menesini would be present. Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill, Lucey Nejedly Menesini 8. BUDGET AND FINANCE a. APPROVE RESOLUTION TO ADOPT THE GASB 45 PUBLIC AGENCIES POST-RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT AND MASTER PLAN DOCUMENT; AUTHORIZE STAFF TO INVEST $11.2 MILLION IN THE TRUST; AND ADOPT THE BOARD INITIAL INVESTMENTS POLICY. APPROVAL RECOMMENDED BY THE BUDGET AND FINANCE COMMITTEE General Manager James Kelly stated that the Board is being asked to consider approving the necessary documents and policies to set up a GASB 45 Trust and invest the $11.2 million that has been set aside for the Trust. The proposed investment policy has been revised by the Budget and Finance Committee in response to full Board input and the current economic conditions. Controller Debbie Ratcliff stated that the proposed resolution adopts the GASB 45 Public Agencies Post-Retirement Health Care Plan Trust Agreement, and adopts the Master Plan Document. She stated that staff is requesting authorization to invest the $11.2 million that has been set aside for the Trust, and to approve the Board Initial Investment Policy. She described the Trust Program, stating that PARS is the Trust Administrator, Union Bank of California is the Trustee, and HighMark Capital Management, which is a subsidiary of Union Bank of California, is the Investment Manager. She introduced the Public Agency Retirement Services (PARS) representatives who will be the trust trustees and advisors. Book 58 - Page 115 Board Minutes of November 6, 2008 She stated that it is proposed to invest the $11.2 million over 20 months, and the Budget and Finance Committee may decrease or cease monthly deposits depending on the economic situation. Any changes to the monthly investments will be reported to the Board at its next meeting. Currently, $11.2 million will remain in the Local Agency Investment Fund (LAIF). It was moved by Member Hockett and seconded by Member Nejedly to adopt Resolution 2008-113, adopting the GASB 45 Public Agencies Post-Retirement Health Care Plan Trust Agreement and Master Plan Document; to authorize staff to invest $11.2 million in the Trust; and to adopt the Board Initial Investments Policy. Motion passed by the following vote of the Board: AYES: NOES: ABSTAIN: ABSENT: Members: Members: Members: Members: Hockett, Nejedly None Lucey Menesini 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 10. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 11. CLOSED SESSION The Board recessed at 2:03 p.m. to reconvene in closed session regarding Item 11.b., Personnel Matters Pursuant to Section 54957 of the Government Code - Performance Evaluations for General Manager, District Counsel, and Secretary of the District. The Board reconvened in open session in the Board Room at 2:30 p.m. The Board recessed at 3:32 p.m. to reconvene in closed session regarding Item 11.a. - Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956.9(a) - James L. Talada III and Melody LaBella vs. Central Contra Costa Sanitary District, et aI., Civil Action No. C08-2771. The Board reconvened in open session in the Board Room at 3:47 p.m. 12. REPORT OUT OF CLOSED SESSION At the conclusion of Item 11.b. earlier in the agenda, President Lucey reported that the Board directed Executive Recruiter Bob Murray to meet with the General Manager, District Counsel, and Secretary of the District regarding their performance evaluations. There was no report out on Item 11.a. Book 58 - Page 116 Board Minutes of November 6, 2008 13. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at 3:48 p.m. ~ ~ \) f/, ~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: a8c,etJ~ Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 58 - Page 117