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HomeMy WebLinkAboutBOARD MINUTES 04-20-06 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 20,2006 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, April 20, 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 It was moved by Member Lucey and seconded by Member Nejedly to approve the Consent Calendar, consisting of Items a. through e, to adopt resolutions, and to authorize recordings. Motion passed by unanimous vote of the Board. a. Adopt Resolution No. 2006-022, accepting a grant of easement from Joseph C. Condon for sewer purposes for the Walnut Creek Sewer Renovation, Phase 3 Project, District Project No. 5929, and authorize staff to record documents with the Contra Costa County Recorder. b. Set May 18, 2006, as the date for a public hearing to receive comments on a proposed ordinance to amend District Code Section 6.20.300, Schedule of Reimbursement fees for District Project No. 5738 (South Avenue, Alamo). c. Authorize the purchase of a purge and trap concentrator at an estimated cost of $16,000. d. Authorize extension of medical leave of absence without pay for Mark Lafferty, Maintenance Technician III, Mechanical, through September 8,2006. e. Authorize extension of medical leave of absence without pay for Harrell Dean McNeely, Mechanical Supervisor, through June 20, 2006. 4. HEARINGS a. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTING AN ORDINANCE TO AMEND DISTRICT CODE SECTION 6.08 "ANNEXATION CHARGES" AND 6.30 "SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES" b. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTING AN ORDINANCE TO AMEND DISTRICT CODE SECTION 6.12.090 "SCHEDULE OF CAPACITY FEES. RATES AND CHARGES" Book 54 - Page 138 V CIIIVU" "'IIQIIHv~ c;;IIv t'IVt'V~U """ "'I'" ~'IYII""III""" .1010041 """""', .,--'" ""'..- -_._.-t"'I' __II" 1"'_'_"__ I I I I I I Board Minutes of April 20, 2006 Acting General Manager/Director of Engineering Ann Farrell stated that the Board set public hearings to consider the annual revision of Capacity, Environmental, and Development- Related fees, rates, and charges. A comprehensive customer outreach program was conducted r~garding the proposed revisions. Principal Engineer Jarred Miyamoto-Mills presented a report on both Items a. and b. He stated that connection fees are charged when a new building is first connected to the sewer or there is a change in use. The fees include annexation charges, permit and inspection fees, capacity fees, a portion of the first year's sewer service charge, and reimbursement fees. The public hearing is to receive comments on proposed revisions to annexation charges, permit and inspection fees, and capacity fees. He stated that the annexation charges were set in 1988 at $240 per parcel. They have not been changed since that time. Staff is proposing to increase the charge to $509 per parcel, which will recover costs of processing, including staff costs, LAFCO and State Board of Equalization filing fees. These fees have increased significantly and more staff time is expended to comply with complex application filing requirements. Various changes are proposed to the Environmental Services and Development-Related Charges, including some increases, some decreases and additions and deletions of fees. The changes range from a reduction of 15.2% to an increase of 15.8%. Capacity fees are currently 25-30% of long-term Sewer Construction revenue. Annual revenue is somewhat unpredictable since it is dependent on rate of development. Current capacity fees are $4, 150/RUE for gravity service and $5,481/RUE for pumped service. It is proposed to increase the gravity service fee to $4,263/RUE and the pumped service fee to $5,667/RUE. He described public outreach and public meetings held. He stated that the proposed fee changes will be effective July 1, 2006. He stated that the Board is also being asked to make findings that the District incurs substantial costs to provide environmental and development-related services and has made a substantial investment in assets that will benefit new users. Findings also include that there is a strong and reasonable relationship between the actual added burden and District costs and the proposed fees, rates and charges. The proposed fees, rates and charges are exempt from CEQA. With regard to the capacity fees, findings include that new users generate an added burden on services and facilities. To maintain an adequate level of service, maintenance of existing capacity and construction of new capacity is necessary. The purpose of the Capacity Fee Program is to equalize the investment in assets between current and new users, ensuring that new users pay their fair share for capacity. Current fund balances and Capacity Fee revenue will be allocated to life-cycle replacement, renovation, upgrading and improvements to maintain existing capacity; and to the addition and expansion of facilities when needed to meet legal and regulatory requirements. Revenue will be allocated to ensure equitable adjustment of contributions between current, new and contractual users and to fund the new user's share of "funds required" in the Sewer Construction Fund, Running Expense Fund, Debt Service Fund, and Self Insurance Fund. Member Nejedly inquired why the fees have not been increased since 1988. Mr. Miyamoto- Mills concurred that it would have been better to raise the fees incrementally but that was not done. In response to questions from Members Nejedly and Boneysteele, Mr. Miyamoto-Mills stated that there was very little interest and no attendance at the public meetings. The public hearings on both items were opened and closed without comments. It was moved by Member Hockett and seconded by Member Boneysteele to adopt Ordinance 238, amending District Code Chapters 6.08 "Annexation Fees" and 6.30 Book 54 - Page 139 Board Minutes of April 20, 2006 "Schedule of Environmental and Development-Related Rates and Charges" with findings, as recommended, effective July 1, 2006. Motion passed by unanimous vote of the Board. It was moved by Member Hockett and seconded by Member Boneysteele to adopt Ordinance 239 amending District Code Section 6.12.090 "Schedule of Capacity Fees, Rates and Charges" with findings, as recommended, effective July 1,2006. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER I None. 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $217.500 TO POSCON ELECTRIC. INC. FOR THE CONSTRUCTION OF THE LOW VOLTAGE POWER CIRCUIT BREAKERS UPGRADE FOR SUBSTATION 40 PROJECT. DISTRICT PROJECT NO. 7235 Acting General Manager/Director of Engineering Ann Farrell stated that electrical switchgears throughout the plant were installed in the mid-1970's. The oldest breakers have been replaced, and the Low Voltage (480Volt) Power Circuit Breakers Upgrade for Substation 40 continues the replacement effort. The project was advertised on March 6 and 11, 2006. Three bids ranging from $217,500 to $278,900 were opened and the lowest bid received was from Poscon Electric. She stated that staff recommends the Board award a construction contract to Poscon Electric. It was moved by Member Hockett and seconded by Member Boneysteele to award the a construction contract in the amount of $217,500 to Poscon Electric, Inc. for the construction of the Low Voltage Power Circuit Breakers Upgrade for Substation 40 Project, District Project No. 7235. Motion passed by unanimous vote of the Board. 7. REPORTS I a. GENERAL MANAGER 1 ) GASB 45 Post Retirement Benefits Acting General Manager/Director of Engineering Ann Farrell stated that a consultant to the District has calculated the unfunded liability under the Government Accounting Standards Board statements 43 and 45. These statements require public entities to calculate and report the current liability associated with future costs of providing health care and other benefits to retirees. Controller Debbie Ratcliff stated that the actuarial report on Governmental Accounting Standards Board (GASB) 45 obligations was presented to the Board in the January workshop. The GASB was created in 1984 to establish public sector accounting and reporting. GASB issued Statements 43 and 45, which require the calculation and reporting of the District's post-employment medical benefits. The final implementation date is December 2006 for Statement 43 (Actuarial Calculation) and December 2007 for Statement 45 (Disclosure in Financials). The actuarial calculation has already been completed. There are three options available: establish present value for future benefit costs and carry it on the books as an unfunded liability; establish a trust to pay future costs of financial obligations by current employees; or establish a dedicated reserve account. A trust could receive higher rates of return because the investments are not as limited, and would be protected from creditors. A trust is also irrevocable and funds cannot be accessed. A dedicated reserve account is revocable, but would likely receive a lower rate of return due to the requirement of more conservative investments. The unfunded liability is approximately $92 million over 30 years at a I Book 54 - Page 140 Board Minutes of April 20, 2006 3% interest rate of return. She described a timeline and steps for establishing a retiree health trust, which would cost approximately $41,000. She concluded her report, stating that it is the intent of staff to come back in May to recommend establishment of a trust and a contribution of $5 million to that trust. I Board Member Boneysteele asked staff to explain the difference between dedicated reserved and trust. He inquired whether, if the District established a dedicated reserve, funds could be withdrawn in case of an emergency or for needed plant expansion. Staff responded that funds could be withdrawn from a dedicated reserve, but is recommending establishment of a trust rather than a dedicated reserve. In response to a question from Member Lucey, staff responded that the District has a $92 million liability as of today. There are 174 retirees and 250 current employees. Member Lucey requested more information concerning the pros and cons of the different options. He asked who would administer the trust and staff responded that it would probably be the Director of Administration and the Controller. President Menesini requested information on what other Districts have done to address the GASB 45 issue. . Member Hockett asked whether the amount staff proposes to set aside is sufficient to cover the liability over the next 30 years. Staff responded that actuarial figures show it should be sufficient, but more than the proposed $5 million could be allocated if desired. Member Hockett stated that she would support the establishment of a trust fund with oversight by District staff as proposed. I Ms. Ratcliff stated that more information will be presented at the next Board meeting. 2) Wet Weather Update Acting General Manager/Director of Engineering Ann Farrell stated that Collection Systems Operations Division Manager Bill Brennan and Plant Operations Division Manager Doug Craig will present an overview of the impact of the almost continuous rain since the last Wet Weather Report on January 12, 2006. Collection Systems Operations Division Manager Bill Brennan stated that the rainfall from January to the present is 13.9 inches. A total of 24 overflows have occurred so far, compared to 51 by the end of April last year. Staff is protecting the slides and Engineering has already presented a report on their efforts. The most impacted area was Orinda/Moraga. There were three brief power failures which required a response on February 27 (Orinda Crossroads, Lower Orinda, Flushkleen, Wagner Ranch), March 12 (Acacia and Sleepy Hollow, Bates Boulevard), and April 12 (Acacia, Flushkleen, Lower Orinda, Wagner Ranch). The April 12 failure was caused by a PG&E line failure. I He stated that Lower Orinda Pumping Station continues to receive additional oversight by both Pumping Station staff and the presence of a guard on site. The pumping station has operated well during a major test of its wet weather capabilities. Oversight will continue until the end of the rainy season. Plant Operations Division Manager Doug Craig reported that flows have averaged 76 million gallons per day at the plant. Peak flows have ranged from 90 to 130 million gallons per day. The retention basins have been used almost daily. Energy use has increased by approximately 20%. A transformer serving the Solids Conditioning Building was grounded but repaired quickly. Despite the prolonged wet weather season, overflows are down and there have been no plant violations or odor complaints. Book 54 - Page 141 Board Minutes of April 20, 2006 Director of Operations Jim Kelly stated that electrical costs are anticipated to be $100,000-$120,000 over what was budgeted. 3) Acting General Manager/Director of Engineering Ann Farrell announced that staff intends to advertise the North Orinda Sewer Renovations, Phase 2 project on May 22 and 27, 2006. This project is the second of four phases to renovate sewers within North Orinda. The project will reconstruct approximately 14,000 linear feet of sewer lines within the public right-of-way, private streets, and easements. I The construction cost is currently estimated at $2.8 million dollars. More information will be presented when the Board is asked to award a construction contract at the June 15, 2006 Board meeting. 4) Acting General Manager/Director of Engineering Ann Farrell announced that staff intends to advertise for bids for the Janitorial Service Contract on May 1, 2006. This contract will include general janitorial services in the HOB, POD, Lab, Source Control Bay 11, Household Hazardous Waste Collection Facility, and CSO. The contract would most likely be for one year with two one-year extensions. Staff anticipates bringing a recommendation for award to the Board at the July 6, 2006 Board meeting. 5) Acting General Manager/Director of Engineering Ann Farrell announced that on April 4, 2006, the Board agreed to interrupt the condemnation process for the alternative alignment across 190 and 194 Strentzel Lane and continue to pursue a right of way agreement with the National Park Service. The Board was informed of staffs plan to construct the Alhambra Valley Trunk Sewer in two phases in order to minimize the schedule impacts of the Park Service right of way process. The Phase 1 plans and specifications will be ready for bidding next month. The contract to construct Phase 1 will be awarded in July and construction is expected from August through October. Phase 2 will be bid after the right of way process with the Park Service is complete. Staff expects to award and construct Phase 2 early next summer. I This week the Park Service informed the District that the right-of-way application is complete and that they are now ready to begin "scoping the project" as part of the NEPA process. This involves getting input from interested parties within the Park Service and the public on what issues the Environmental Assessment report should address. Staff has met with Park Service staff and is in the process of developing a schedule of tasks and deadlines for the NEPA process. Staff is also in discussions with the developer who will be funding a portion of the trunk sewer and plans to have a developer agreement available for Board consideration prior to award of Phase 1 of construction. Finally, staff is developing financing approaches for the main extensions that will be the responsibility of the Alhambra Valley residents and will be bringing some options to the Board for discussion at a future Board meeting. 6) Acting General Manager/Director of Engineering Ann Farrell announced that a public workshop has been scheduled for the residential customers impacted by the Danville Sewer Renovations, Phase 1 Project for Thursday, May 4, 2006 at 7:00 p.m. at Vista Grande Elementary School Multi-Use Room. I A meeting has already been held with the business customers impacted by this project. The project consists of renovation of approximately 5,000 feet of 6-inch and 8-inch diameter sewer. The majority of the work will be done in the business section of downtown Danville. 7) Acting General Manager/Director of En~ineering Ann Farrell announced that plans are underway for the District's 60 Anniversary celebration. An event for employees, retirees, and the Board has been tentatively scheduled for Book 54 - Page 142 I I I Board Minutes of April 20, 2006 8) September 13 on the District's plant site. The actual day of incorporation, July 15, 1946, will be commemorated at the annual summer student picnic on Friday, July 14 at Hidden Valley Park on Center Avenue in Martinez. Acting General Manager/Director of Engineering Ann Farrell announced that the District has received a letter from the Government Finance Officers Association indicating that, for the 6th year in a row, the District will be awarded the Certificate of Achievement for Excellence in Financial Reporting. This award is presented to government agencies whose Comprehensive Annual Financial Report achieves the highest standards in government accounting and financial reporting. When the award is received, it will be presented to the Board. 9) Acting General Manager/Director of Engineering Ann Farrell announced that the District will be participating in the Martinez Earth Day celebration on April 22, 2006 at the John Muir Historical site on Alhambra Valley Road from 10:00 a.m. to 4:00 p.m. The District is also supporting the Master Gardeners and the Lafayette Garden Club booth with printed materials at the Lafayette Earth Day celebration on the same day. 10) Acting General Manager/Director of Engineering Ann Farrell announced that the Chronicle Watch typically runs an article when one of their watched issues reaches 1,000 days. On April 20, 2006 they printed an article on the Martinez Hidden Lakes Bridges and the District sewer that it supports and were able to report the good news that on April 19, 2006 the Martinez City Council approved a construction contract to replace the bridges with a 50% financial contribution from the District. 11) Acting General Manager/Director of Engineering Ann Farrell announced that District surveillance cameras recorded an attempted theft on Wednesday, April 19, 2006 at about 11 :25 a.m. Police were contacted and given the pictures from the surveillance cameras. b. COUNSEL FOR THE DISTRICT District Counsel Kent Aim announced that the Suzanne Brown case trial has been postponed one month to the third week of June, 2006. c. SECRETARY OF THE DISTRICT District Secretary Elaine Boehme announced Special Board Meeting closed session on April 24, 2006 to discuss the recruitment of a new General Manager. d. BOARD OF DIRECTORS 1) Member Lucey, Chair of the Budget and Finance Committee, reported that the Committee reviewed the Expenditures and recommends approval. It was moved by Member Lucey and seconded by Member Boneysteele to approve the Expenditure List dated April 20, 2006, including Self Insurance Check Nos. 102311 to 102314, Running Expense Check Nos. 160277 to 160475, Sewer Construction Fund Check Nos. 28577 to 28601, and Regular Payroll Check Nos. 55755 to 55778. Motion passed by unanimous vote of the Board. 2) President Menesini reported on the April 17, 2006 Contra Costa Special Districts Association Meeting. He announced that, at that meeting, members voted to reappoint incumbent Special District representatives George Schmidt and Dwight Meadows. 3) President Menesini reported on the recent Environmental Alliance meeting held on April 17, 2006 regarding Post Katrina Water and Wastewater Utility Recovery Efforts in New Orleans. Book 54 - Page 143 Board Minutes of April 20, 2006 8. ENGINEERING a. APPROVE INCREASE IN COST CEILING BY $50.000 TO A TOTAL OF $120,000 OF PROFESSIONAL ENGINEERING CONSULTING SERVICES AGREEMENT WITH TALAVERA AND RICHARDSON FOR INTERPRETATION AND INTEGRATION OF FLOW MONITORING DATA INTO THE DISTRICT HYDRAULIC SEWER MODEL. DISTRICT PROJECT NO. 5930 Acting General Manager/Director of Engineering Ann Farrell stated that the proposed amendment to the agreement will allow staff to complete calibration of the District sewer I hydraulic model using the new flow monitoring data collected in 2005 so that it more accurately reflects flow conditions in the field. Accurate flow projections are essential to ensuring that facilities are properly sized to avoid wet weather capacity issues. As indicated in a memo to the Board Finance Committee in January, it is staff's opinion that Talavera and Richardson are uniquely qualified to complete this particular work. However, in an effort to diversify the pool of data base consultants, staff is transitioning other engineering data base needs to new consultants. Associate Engineer Gail Chesler gave an overview of the, work to be completed. She described the placement of flow monitors from December 2004 through April 2005. She showed charts of flow monitor locations and explained the benefit and importance of flow data and how it is obtained. She stated that the original contract with Talavera and Richardson was to determine monitoring sites, analyze data and calibrate ArcSNAP. They have experience in developing both prior master plans and excellent engineering and software expertise. Their fee of $110 per hour is reasonable when compared with other firms. The current budget for Talavera and Richardson is $70,000, and staff is proposing to increase that amount to $120,000. The additional contract work will include calibration of the ArcSNAP model with the 2005 data. She concluded that staff recommends approval of I the increased cost ceiling. It was moved by President Menesini and seconded by Member Hockett to authorize the General Manager to approve an amendment to the existing Agreement No. 029702 with Talavera and Richardson to increase the cost ceiling by $50,000 to a total of $120,000 Motion passed by the following vote of the Board: AYES: Members: Boneysteele, Hockett, Nejedly, Menesini NOES: Members: Lucey 9. APPROVAL OF MINUTES a. MINUTES OF MARCH 16.2006 It was moved by Member Hockett and seconded by Member Boneysteele to approve the minutes of March 16, 2006. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE a. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF-INSURANCE I FUND AND APPROVE THE ALLOCATION OF $700.000 TO THE FUND FROM THE 2006-2007 OPERATIONS AND MAINTENANCE BUDGET FOR INCLUSION IN THE DISTRICT BUDGET Acting General Manager/Director of Engineering Ann Farrell stated that the District has self- insured most of its liability and some of its property risks since July 1, 1986, when the Board approved the establishment of the Self-Insurance Fund (SIF). The SIF has effectively funded District losses over its twenty year history. Book 54 - Page 144 I I I Board Minutes of April 20, 2006 She stated that, each year, staff reviews the financial status of the fund and the next fiscal year's proposed budget. Director of Administration Randy Musgraves provided a summary of the information. He stated that general liability and employment liability premiums have increased by 5%, and property insurance premiums by 25%. He described insurance industry trends, which were significantly affected by the terrorist attacks on September 11, 2001. Premiums have increased between 60% and 150%. The 2005 hurricane season produced an additional $75 billion loss. He described financial spread sheets showing the status of the SIF. The O&M fund will have to help fund the SIF because reserves were depleted in sub-funds B and C. Insurance premiums increased from $219,000 to $530,000. Mr. Musgraves reminded Board Members that the District does not carry earthquake insurance. In response to a question from Member Boneysteele, Mr. Musgraves stated that the average age of the workforce is 48.5 years. It was moved by Member Boneysteele and seconded by Member Nejedly approve the allocation of $700,000 from the 2006-2007 O&M Budget for inclusion in the District Budget to be adopted at the June 15, 2006 Board Meeting. Motion passed by unanimous vote of the Board. b. APPROVE THE 2006-2007 EQUIPMENT BUDGET FOR INCLUSION IN THE 2006- 2007 DISTRICT BUDGET. Acting General Manager/Director of Engineering Ann Farrell stated that the Fiscal Year 2006-2007 Equipment Budget was reviewed with the Board Capital Projects Committee on March 23, 2006 and is before the full Board for approval. The Equipment Budget totals $1,153,626, which includes a $60,000 contingency. Once approved, the Equipment Budget will be scheduled for adoption at the June 15, 2006 Board meeting. It was moved by Member Hockett and seconded by Member Boneysteele to approve the 2006-2007 Equipment Budget for inclusion in the 2006-2007 District Budget to be adopted at the June 15, 2006 Board Meeting. Motion passed by unanimous vote of the Board. c. ADOPT HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) APPENDIX TO THE HEALTH FLEXIBLE SPENDING ARRANGEMENT PLAN (A COMPONENT PLAN OF THE CCCSD SECTION 125 CAFETERIA PLAN) TO COMPLY WITH THE NEW HIPAA SECURITY RULE; AND APPOINT THE DISTRICT CONTROLLER AS THE PRIVACY OFFICER AND SECURITY OFFICIAL. Acting General Manager/Director of Engineering Ann Farrell stated that the Board is being asked to adopt revisions to the District's Cafeteria Plan Documents, specifically to the Health Flexible Spending Arrangement Plan, to meet the new Health Insurance Portability and Accountability Act Security Rule. New Federal regulations were issued with a compliance date of April 20, 2006. The new HIPAA Security Rule requires entities that maintain electronic protected health information to implement reasonable safeguard to ensure confidentiality of health information. The Accounting and IT staff have worked together to Implement steps to physically and technically safeguard the protected health information. Member Hockett stated that, in her experience, generally two people are appointed, one to safeguard the administrative and one the security. Controller Debbie Ratcliff responded that the IT Manager is in her chain of command and that she will work closely with him to make sure both issues are covered. It was moved by Member Hockett and seconded by Member Boneysteele to adopt the revisions to the District's Cafeteria Plan documents (specifically, the Health Flexible Spending Arrangement Plan) to meet the new HIPPA Security Rule, and appointed the Book 54 - Page 145 Board Minutes of April 20, 2006 District Controller as the Privacy Officer and Security Official. Motion passed by unanimous vote of the Board. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. None. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS 13. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at 3:40 p.m. ~CWU~iU&~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California i COUNTERSIGNED: I ~OeJ- (') Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 54 - Page 146 I I I