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HomeMy WebLinkAboutBOARD MINUTES 02-16-06 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 16, 2006 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, February 16, 2006. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Hockett, Lucey, Nejedly, Menesini ABSENT: Membeffi: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR General Manager Charles Batts noted that, under Item c., the effective date of the merit increase for Staff Engineer Alan R. Weer should read January 20, 2006, not January 23, 2006, in accordance with prior practice. It was moved by Member Hockett and seconded by Member Nejedly to approve the Consent Calendar, consisting of Items a. through c. with the revision as noted, to adopt resolutions, and to authorize recordings. Motion passed by unanimous vote of the Board. a. Adopt Resolution 2006-008, accepting public sewer improvements and an offer of dedication from Delco Builders and Developers, Inc. for easements shown on the recorded final map of Subdivision No. 8174 in the Walnut Creek area, District Project 5311, and authorize staff to record documents with the Contra Costa County Recorder. b. Adopt Resolutions 2006-009 and 2006-010, accepting public sewer improvements and offers of dedication from PH Holdings, L.P., and ICI Development Company, Inc. in the city of Pleasant Hill, District Project 5787, Parcels 2 and 3 and authorize staff to record documents with the Contra Costa County Recorder. c. Request approval of registration differential salary merit increase for Staff Engineer Alan R. Weer. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. REPORTS a. GENERAL MANAGER 1 ) 2005 Pollution Prevention Report and 2006 Pollution Prevention Plan General Manager Charles Batts stated that each February, as required by the NPDES permit, District staff prepares an annual report on Pollutiol') Prever.tion Book 54 - Page 102 Board Minutes of February 16, 2006 activities for the previous calendar year and the plan for preventing pollution in the current year. These plans are reviewed and commented on by the Regional Board. Assistant Engineer Melody LaBella presented a summary of the 2005 activity and a preview of the 2006 Plan. She stated that, in 2005, the District did not exceed any NPDES permit effluent limits. The District continued its public outreach programs and operation of the Household Hazardous Waste Facility, together with continued outreach to dentists to reduce influent mercury concentrations. She listed pollutants of concern, the highest priority pollutant being mercury. She described 2005 mercury reduction activities, which included acceptance of mercury-containing wastes, participation as a control facility in NACWA's amalgam separator study, and the mercury thermometer exchange program. Ms. LaBella presented highlights from the 2005 Pollution Prevention Annual Report. These include accomplishments of the Household Hazardous Waste Facility, which collected almost 100 pounds of elemental mercury. She stated that the District won the 2005 EPA National Pretreatment Program Excellence award. Pretreatment and Stormwater programs included conducting 772 pretreatment inspections and performing 952 stormwater inspections at businesses. Additional public outreach efforts included publication of the Pipeline newsletter and education programs at schools and for the general public. Cooperative partnerships continued with the Bay Area Clean Water Agencies, the Bay Area Pollution Prevention Group, Our Water-Our World, and the Contra Costa Green Business Program. For 2006, attention will focus on mercury reduction, including development of a program for mandatory amalgam separators for dentists. Outreach to amateur gold miners will be developed. PCBs will also be added to the Pollution Prevention Plan in anticipation of a TMDL for PCBs. 2) Report on Mercury Total Maximum Daily Load (TMDL) General Manager Charles Batts stated that the San Francisco Regional Water Board held a scoping session on January 31,2006 to describe how they were going to modify the Mercury TMDL plan to address the State Board's remand order. Director of Operations Jim Kelly presented a report, stating that the mercury TMDL was adopted by the San Francisco Bay Regional Water Quality Control Board in September 2004. It was considered by the State Water Board and remanded back to the Regional Board for revisions in September 2005. The Regional Board announced what revisions they planned to make to address the State Water Board remand on January 31,2006. The Regional Board is expected to adopt the revised TMDL in the summer of 2006. The remand focused largely on wastewater treatment plants, and gave five major instructions: allocations must reflect effective pollution prevention; all dischargers must monitor for methyl mercury; allocations must reflect effective treatment; there must be individual allocations for dischargers; and the State Water Board is directed to develop a trading program that can be used by all Regional Boards. Mr. Kelly explained the effect the requirements will have on the District, including the need for a mandatory amalgam separator program, and reduction of mercury recycled in the scrubber water. In response to a question from President Menesini, Mr. Kelly explained how the TMDL is determined and how the District participates in that determination. He stated that the District contributes.$90,000 per year through BACWA to assist with the process, which is conducted through a Clean Estuary Partnership. General Manager Batts commended Mr. Kelly for his leadership in BACWA on this issue. Book 54 - Page 103 Board Minutes of February 16, 2006 3) Report on Proposed Mandatory Dental Amaloam Separator Prooram General Manager Charles Batts stated that, as mentioned in earlier reports, staff is proposing a Mandatory Dental Amalgam Separator program. While staff recognizes that treatment plant effluent is a small contributor of mercury to the Bay, the regulatory agencies are focusing on discharger mercury limits as a source that can be controlled. Director of Engineering Ann Farrell presented some of the options for the Board's consideration in implementing a mandatory amalgam separator program. She stated that currently only 35 out of 313 dental practices use or plan to use separators. The San Francisco Regional Water Quality Control Board has indicated that in the near future they plan to make amalgam separators mandatory for dentists in their service area. Costs have come down significantly, with an average cost of $600-$700 per vacuum system and annual maintenance and disposal fees of $200. She described mandatory amalgam separator programs established by San Francisco Public Utilities Commission, the City of Palo Alto, and East Bay Municipal Utility District (EBMUD). She stated that San Francisco PUC program is funded through the sewer service charge, as is the Palo Alto program. The EBMUD program is funded through pollution prevention fees. All three programs utilize the self-certification process and some have follow-up inspections by source control staff. Ms. Farrell described outreach efforts to the dental community over a three-year period, which included presentations to the Contra Costa Dental Society, workshops and mailings. She stated that the proposed plan is to be implemented in 2007 and with follow up inspections in 2008. The proposed plan could be implemented by ordinance or by placing the dentists under Class III permits. Staff recommends that the dentists be permitted to facilitate better communication of program expectations. She explained several fee options and the pros and cons of each approach, including requiring dentists to pay the $351 Class III permit fee, funding the program through a pollution prevention surcharge, or funding through the sewer service charge. She stated that it is anticipated that the program might cost $100,000 per year in additional staff time. She stated that staff recommends one of two options. The dentists could be permitted using the existing Class IIIIU category with the $351 annual fee, and a rebate could be offered during the first year for timely installation of the separator. Alternatively, the District could eliminate Class III annual fees for all Class III industrial users and spread these costs across the entire rate base. Currently there are 70 such permits generating $25,000 in annual revenue. Then dental permits would add an additional $110,000 in annual revenue. If this entire amount of $135,000 was spread over the entire rate base, it would represent less than a $1 increase in the sewer service charge per residential unit equivalent. She requested feedback from the Board. Member Boneysteele stated that he is opposed to increasing charges to other businesses to subsidize the dentists. Member Lucey stated that his preference is that no additional fees be assessed and that the program be funded from District reserves. President Menesini stated that the proposal appears to be similar to programs operated by other agencies, and that $351 is a reasonable fee. Member Hockett stated that the District needs to be fair to everyone in assessing fees. She stated that, in her opinion, dentists will comply willingly with the program. Book 54 - Page 104 Board Minutes of February 16, 2006 4) General Manager Charles Batts stated that the recruitment period for the Capital Projects Division Manager position ended on February 3, 2006. Applications have been reviewed, and qualified candidates will be interviewed by an experienced panel of professionals on March 3, 2006. The top candidates will then be interviewed by the Director of Engineering who will select the candidate. The Board will then be asked to appoint the selected candidate to the position. 5) General Manager Charles Batts presented an update on the deployment of District staff to New Orleans. He stated that, despite all the efforts of local agencies, and the considerable work of East Bay Municipal Utility District, the District ended all efforts to prepare for deployment of staff to New Orleans. The Sewer and Water Board of New Orleans was unable to reach an agreement with Louisiana State agencies regarding responsibilities, roles, and reimbursement, and the relief effort being planned by both the agencies in California, and elsewhere, has come to a halt. Despite this news, the District learned several valuable lessons on emergency preparedness, built partnerships for the future, and established its willingness to work with other agencies. Sincere thanks go to the employees who volunteered to go to New Orleans for their concern and willingness to come to the aid of others. 6) General Manager Charles Batts announced that Senior Engineer Randy Schmidt, Assistant Engineer Alan Weer, and Process Control Engineer Randy Grieb will be traveling next week to visit Minneapolis, Minnesota to evaluate the new mercury removal system on their biosolids incinerator. In addition, Randy Schmidt and Alan Weer will also go to a new biosolids incineration facility in Green Bay, Wisconsin, to evaluate a state-of-the-art wet scrubber for mercury removal. There are funds budgeted in the Metals Removal Technology capital project to cover the cost of this travel. 7) General Manager Charles Batts announced that the Central Contra Costa Transit Authority, one of the District's permitted businesses, won the District's Pollution Prevention Recognition Award last September for their exemplary work to protect both wastewater and stormwater quality at the maintenance facility located in North Concord. District Source Control staff nominated this facility for consideration through the annual California Water Environment Association's CWEA Pretreatment, Pollution Prevention, Stormwater awards program. He stated that the Transit Authority's maintenance facility won the Facility of the Year for Northern California's small facility category. The award will be presented to the Transit Authority during an awards luncheon to be held in Burbank during the Annual Conference on February 28, 2006. 8) General Manager Charles Batts announced that the District has received the final reimbursement from Shell Oil Products USA for the Basin A South soil cap, bringing the total received from Shell to $482,000. This money represents Shell's share of the costs for the project that was completed a year ago, under the agreement negotiated back in 1997. b. COUNSEL FOR THE DISTRICT None. c. SECRETARY OF THE DISTRICT None. d. BOARD OF DIRECTORS 1) Member Lucey, Chair of the Budget and Finance Committee, reported that he reviewed the Expenditures and took no exception. Book 54 - Page 105 Board Minutes of February 16, 2006 It was moved by Member Lucey and seconded by Member Boneysteele to approve the Expenditure List dated February 16, 2006, including Self Insurance Check Nos. 102294 to 102298, Running Expense Check Nos. 159330 to 159533, Sewer Construction Fund Check Nos. 28407 to 28444, Manual Payroll Check Nos. 49089 to 49093, and Regular Payroll Check Nos. 55704 to 55727 as recommended. Motion passed by unanimous vote of the Board. 2) President Menesini presented a report of the February 9, 2006 Outreach Committee Meeting. He requested that the video clip of the television interview at the Household Hazardous Waste facility be shown at the next Board meeting. The Board accepted the report without comments. 3) Member Nejedly presented a report of the February 15, 2006 Collection System Operations Facility Ad Hoc Committee Meeting. Board Member Boneysteele expressed concern regarding the function of Board Committees, particularly the Ad Hoc Committee, stating that such matters should be considered by the entire Board. He reiterated his position that the CSO facility should be rebuilt as a first-class, efficient building for the staff who work there, and not reduced in size to save money. He stressed the importance of adequate showers and locker space both for the current staff and to accommodate future increases. He objected to the Ad Hoc Committee asking staff to reduce the size and cost of the original design. General Manager Batts stated that the Committee offered several thoughtful suggestions and staff found it valuable in reviewing the plans. The results of any input from the committee and other sources will be brought back to the full Board for consideration. Member Boneysteele objected to the fact that direction to staff with regard to the building design is now only coming from two Board Members, not the entire board. Member Lucey expressed support for the Board Committee system and stated that, in his opinion, it works very well. He stated that three members of the Board did not support the original design and cost of the proposed new CSO facility, finding it too expensive. He stated that the final decision will be made by the full Board. Member Hockett concurred with Member Boneysteele's comments and stated that she also feels excluded from the process. She stated that the rebuilding of the CSO facility is extremely important for the District, its ratepayers, and CSO staff. She opposed any paring down of the size of the facility, stating that it should be adequate to meet current and future needs. She said the District has sufficient funds to pay for the facility and cost should not be an issue. President Menesini stated that the Committee is indeed considering the needs of CSO staff in reviewing the design. He concurred with Member Lucey that the Committee structure is common among government agencies and works well. He encouraged the Board to trust that Board Members all have the best interests of the District at heart. Member Nejedly commented that reviewing the plans for the new CSO facility was informative and helpful. Member Boneysteele reiterated his concern that the facility should be adequate and meet the needs of the CSO staff. 4) There were no Announcements. Book 54 - Page 106 Board Minutes of February 16, 2006 6. APPROVAL OF MINUTES It was moved by Member Hockett and seconded by Member Boneysteele to approve the minutes of January 26, 2006. Motion passed by unanimous vote of the Board. 7. BUDGET AND FINANCE a. RECEIVE THE 2005-2006 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31.2005 AND PFtOJECTIONS FOR THE FULL FISCAL YEAR General Manager Charles Batts stated that this is the six-month budget review that compares the actual financial results with the budget for the first six months of the fiscal year. Also, full year projections are included and any significant variances from budget are explained. Controller Debbie Ratcliff presented a report, stating that at the end of December, 2005, total revenues were $22,167,136 versus the budgeted amount of $21 ,704,237, for a variance of 2.1 %. Total expenses were $21,581,337 compared with the budgeted amount of $22,958,653, for a variance of 6.0%. She stated that this was primarily due to salaries being below budget, and additional savings on the benefits side. There were also savings in repairs and maintenance and outside services. Revenues over expenses are $585,799 versus a $1.2 million deficit budgeted. With regard to the full fiscal year, total revenues are projected to be $48,867,488 compared to a budget of $47,817,500, mainly due to sewer service charges collected at the counter from new connections of commercial properties and in the Dougherty Valley. On the expense side, projections are at $46,661,328, with the budgeted amount being $47,188,613. Revenue over expenses are projected at $2,206,160, which will go back into the O&M fund. Projected favorable variances include salaries, wages and benefits being under budget, together with outside services. Projected unfavorable variances are utilities, due to anticipated increases in natural and landfill gas, and repairs and maintenance due to unanticipated work on two centrifuge rotating assemblies. b. 2005-2006 CAPITAL IMPROVEMENT BUDGET MID-YEAR STATUS REPORT Director of Engineering Ann Farrell presented a six-month review of the Capital Improvement Budget. Year-end projected revenues are $28,918,000, rather than the $20,802,000 originally anticipated, due to increased revenue from the Dougherty Valley. With regard to expenditures, she stated that projects have been accelerated, where possible, to take advantage of the increased revenue. She stated that projects that have been moved forward include the Solids Conditioning Building Ventilation, Influent Diversion Structure Rehabilitation, and North Clarifier Paving Improvements. Collection System Program changes include consolidating the Vessing Road Renovation project to bid a later phase this fiscal year, and adding sites to other renovation projects at the request of Collection System Operations. She stated that the HOB/HV AC and Roof Improvements,will be delayed due to design issues. With these updated revenues and expenditures, it is projected that reserves will be drawn down by approximately $3 million rather than the $7 million originally anticipated, taking the balance down to approximately $55 million. c. RECEIVE DECEMBER 2005 FINANCIAL STATEMENT REGARDING TEMPORARY INVESTMENTS Controller Debbie Ratcliff presented a report on the 2005 Financial Statements regarding temporary investments. She stated that the investments are held in a LAIF account, commercial paper and US T -Bills and T -Notes. The yield as of November, 2005 was 3.636%. Book 54 - Page 107 Board Minutes of February 16, 2006 8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 9. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS In response to a question from Board Member Lucey regarding the status of the Alhambra Valley Trunk Sewer Project, Environmental Services Division Manager Curt Swanson stated that, because the National Park Service has so far refused to grant the District an easement, a hearing will be set on the next Board agenda to condemn adjacent property to acquire easements for an alternative alignment for the project. President Menesini inquired whether it might be of benefit to enlist the support of local officials in working with the Park District to acquire the John Muir gravesite encroachment permit. District Counsel Kent Aim stated that, if the Board wished, a resolution to that effect could be prepared. Mr. Batts expressed concern that, even if the Park District consented, the process could take a long time due to Federal environmental requirements. 10. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at 3:40 p.m. '\ /J <~A' ~/J/. "~ V V~ n-c {} (/ UV'vv-> Presidnt of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: f;p&~ Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 54 - Page 108