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HomeMy WebLinkAboutBOARD MINUTES 05-04-06 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 4, 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, May 4, 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. AWARDS AND COMMENDATIONS a. University of the Pacific Co-Op Emplover of the Year Award Acting General ManagerlDirector of Operations Jim Kelly stated that the University of the Pacific School of Engineering and Computer Science has recognized the District as their Employer of the Year. Human Resources Manager Cathryn Freitas introduced Human Resources Assistant Judy Rivers, who works with the University of the Pacific and who received the award on behalf of the Board. She commended Judy for all her hard work and accomplishments. President Menesini accepted the award. 4. CONSENT CALENDAR a. Set public hearing on May 18, 2006, to receive public comment on the Draft Fiscal Year 2006-07 Capital Improvement Budget/2006 10-Year Capital Improvement Plan document. b. Set public hearings on June 1, 2006, to receive public comment on the fiscal year 2006-2007 Operations and Maintenance Budget, Debt Service Fund Budget and the Self-Insurance Fund Budget and for the establishment of the Fiscal Year 2006-2007 Sewer Service Charge Rates, and on the collection of current Sewer Service Charges and prior year delinquent charges by placing them on the County Tax Roll. It was moved by Member Boneysteele and seconded by Member Hockett to approve the Consent Calendar, consisting of Items a. and b. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. Book 54 - Page 147 Board Minutes of May 4, 2006 6. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MCGUIRE AND HESTER AS THE LOWEST RESPONSIVE BIDDER IN THE AMOUNT OF $3.232.200 FOR THE M-4A FORCEMAIN RECONSTRUCTION, DISTRICT PROJECT NO. 5410 Acting General Manager/Director of Operations Jim Kelly stated that the District received three bids for the M4-A Force Main Reconstruction Project. McGuire and Hester was the lowest responsive bidder with a bid of $3,232,200. The Engineer's Estimate for the project was $2.1 million. Principal Engineer Tad Pilecki provided an overview of the project and a brief analysis of the bid results. He said that the District annexed the City of Martinez into our service area in 1967 and in 1970 the Martinez pump station, Fairview pumping station and Maltby Pumping Station and associated force mains and gravity lines were put into service. The M-4A force main comes out of the Fairvew pumping station, and is located just east of 680 along Waterfront Road. Some of the joints are leaking and deteriorating, and tidal action has accelerated this deterioration. Because the pipeline is located above grade adjacent to the roads, there is significant exposure to traffic also. Project challenges include that the construction must be done at night, there are numerous fuel lines in close proximity, the probability of contaminated soils, and influences from Bay mud and tides. Location of the fuel lines is unclear as the refineries will not release in advance the exact location. He stated that three bids were received, ranging from $3,232,200 to $3,858,000. The Engineer's Estimate was $2,100,000. Factors affecting the higher bids include additional costs associated with safety issues, double handling of contaminated soil due to nighttime construction, fuel cost increases, and backfill materials not being readily available. He concluded that staff recommends awarding the construction contract to McGuire and Hester in the amount of $3,232,000. In response to a question from Member Nejedly, Mr. Pilecki responded that the option of relocating the line was explored but that it cannot easily be relocated. Member Boneysteele asked questions regarding flow in pressurized pipes. It was moved by Member Boneysteele and seconded by Member Hockett to award the construction contract to McGuire and Hester as the lowest responsive bidder in the amount of $3,232,200 for the M-4A Forcemain Reconstruction, District Project No. 5410. Motion passed by unanimous vote of the Board. 7. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. ADOPT A POLICY ON HIRING DISTRICT RETIREES Director of Administration Randy Musgraves presented a report, stating that, the Budget and Finance Committee requested the staff to prepare alternative policies for hiring District retirees. Mr. Musgraves stated that in December 2002 the Committee had discussed hiring or contracting with retirees, including drafting of a policy. The policy was never brought to the full Board for discussion or direction. The Board has several options for hiring retirees, including requiring Board approval, Board review or notification, or delegating the authority to the General Manager. The Board may also delegate the responsibility for authorizing the hiring of retirees to a Board Committee. The Budget and Finance Committee has reviewed the options and recommends that the full Board make a determination. Mr. Musgraves also requested that, at a future Board meeting, the Board approve Check No. 28449 for $10,000 for payment to Dan Cortinovis. Member Lucey stated that it is his recommendation that the General Manager be authorized to hire retirees but be required to notify the Board through an announcement. Book 54 - Page 148 -L. Board Minutes of May 4, 2006 Member Hockett stated that she does not feel that Board notification is necessary and that the General Manager should be authorized to hire retirees without Board notification. Member Boneysteele concurred with Member Lucey's recommendation, stating that the Board should be notified when retirees are hired. He opposed the option of delegating that authority to a Committee, stating that, in his opinion, it is a violation of the Brown Act. It was moved by President Menesini and seconded by Member Boneysteele to direct staff to prepare a District policy and procedure for hiring District retirees, authorizing the General Manager to hire retirees but requiring him to notify the Board through an announcement when one is hired, for Board approval at the May 18, 2006 Board meeting. Motion passed by the following vote of the Board: AYES: NOES: Members: Members: Boneysteele, Lucey, Nejedly, Menesini Hockett 8. REPORTS a. GENERAL MANAGER 1 ) CONCO Development Update Acting General ManagerlDirector of Operations Jim Kelly stated that Conco Cement recently received a grading permit for its proposed industrial development on property to the north of the treatment plant. Access to the Conco property is by way of a gravel road across a portion of the treatment plant property. Before Conco can begin construction of utilities and road improvements to serve their property, they must purchase additional road and subsurface easements from the District. Environmental Services Division Manager Curt Swanson stated that Conco has its grading permit and is in the process of obtaining a building permit from the County for development of the former IT Baker site. US Development's plan for a concrete batch plant on the site has stalled and is not scheduled for development at this time. He stated that Conco and the other property owners will need additional easements from the District for utilities or to meet conditions of the land use permits issued by the County. Conco needs additional easements for the overburdening of the existing road, an additional road easement to extend the width, underground easements for water and sewer pipelines, and a quitclaim for specific access easements on Conco property. In response to a question from President Menesini, Mr. Swanson responded that "overburden" means an increase in traffic to 340 trips per day into or out of Conco's complex. If US Development had proceeded with its batch plant, it would have added another 410 trips per day. Other issues of concern are the need to have Contra Costa Topsoil relocate some of their material, and the business disruption to Contra Costa Topsoil during the construction of the road. Director of Administration Randy Musgraves stated that staff met with Mr. Obert Einevoll of Contra Costa Topsoil. Mr. Einevoll indicated that he will relocate his dirt piles. He would like to reserve his request to relocate his operation to the Kiewit site, but acknowledged that that would be an expensive move. He stated that Mr. Einevoll indicated that he would like to see what the impact is first and continue to work with staff. In response to a question from Member Nejedly, Mr. Musgraves stated that Mr. Einevoll has been informed that it is not in the interests of the District to pay for his relocation. Mr. Musgraves stated that he assured Mr. Einevoll that staff will work with him if he wishe.s to move to the Kiewit site. Book 54 - Page 149 Board Minutes of May 4, 2006 Mr. Swanson stated that Conco's position is that they have a 34-foot wide easement which will be sufficient for their needs and will not cause any interference with Contra Costa Topsoil's operations. The estimated cost of relocating Contra Costa Topsoil to the Kiewit property is in the region of $640,000. Mr. Swanson stated that Conco has asked for a possible exchange of property rights. The District may be interested in upgrading the outfall easement and widening it from 80 to 100 feet; adding protective restrictions to the M-2 forcemain easement; obtaining effluent discharge easements; and obtaining broader access easement to Conco property. District Counsel Kent Aim announced that a closed session is scheduled at the end of the meeting to discuss the matter further if the Board wishes. 2) Collection Svstem Operations (CSO) Facilitv Update Director of Engineering Ann Farrell presented a status report on the CSO facility and gave a brief history of the project. Broad alternatives were developed and discussed in April 2005, including the possibility of moving the facility to Martinez. After further analysis and traffic studies, it was recommended that Alternative 004, construction of a new building on the existing site, was the best alternative. At that point, staff began discussing the Caltrans lease option and improvements of the yard as a separate project, including rebuilding the failing retaining wall. The 80ard approved this project for CEQA permitting on March 16, 2006. She stated that staff has looked at the square footage of the proposed building and feels confident that the identified needs are being met. She showed slides of the floor plan for Alternative 004B, stating that the square footage for the men's locker room is three times larger than in the existing building, and the women's locker room will include a new mud room and will increase from 160 square feet to 985 square feet. The crew room, training room and lunchroom stay about the same, as they are currently adequate. She stated that the main difference between Alternatives 004A and 0048 is the consolidated training room and crew room. She stated that the fitness center has been reduced a little in size but staff may try to add some space back as the design is refined. Engineering staff will be in the main building as the Ducca house will be demolished. If additional space is needed in the future, Engineering staff could possibly be moved elsewhere. She concluded her report, stating that the building proposed in Alternative 0048 will be about 70% bigger than the current building. Collection System Operations Manager Bill 8rennan provided additional information about Alternative 0048 and compared it with the current building. He stated that the priorities are the locker rooms, the crew room, the warehouse, and a dedicated area for electronics. The men's locker rooms in Alternative 004B are suitable for 60 staff, and the women's for 10. He stated that the plan seems to be adequate for the foreseeable future. He explained the layout and design of the Alternative 0048, stating that it is only a conceptual plan and will be developed further to optimize construction materials and space allocation. He summarized his report, stating that Alternative 0048 addresses the key issues; must be more flexible to meet future needs; must be optimized to improve space use; and must be further developed to ensure the most cost-effective construction methods and materials. Staff is asking for conceptual agreement to further develop Alternative 0048 and to come back to the 80ard with a position paper for implementation. Member Hockett expressed concern that Alternative 0048 still only has two showers in the women's locker room. This does not support the District's goal of attracting more women to CSO. She stated that she prefers Alternative 004A rather than 0048, which better meets the needs of the CSO staff and the District. Book 54 - Page 150 Board Minutes of May 4, 2006 President Menesini stated that progress has been made. He stated that an attractive and modern facility will be built, and a suitable plan will be developed that meets the needs of the District. Member Boneysteele stated that he concurred with comments made by Member Hockett. He agreed that two showers in the women's locker room is not enough. He described his visit to Burlingame, and reiterated his concern that there be adequate meeting rooms. He also expressed a preference for Alternative 004A. Member Lucey stated that he prefers Alternative 004B. He concurred with Member Hockett regarding needing more showers in the women's locker room. He thanked the Ad Hoc Committee members for their work on the project. President Menesini commented on the field trip to Burlingame and thanked staff for arranging it. Acting General Manager/Director of Operations Jim Kelly stated that staff will revisit Alternatives 004A and 004B and review the size and content of the women's locker room. The matter will be brought back for Board consideration at an upcoming meeting. 3) GASB 45 Update. Acting General ManagerlDirector of Operations Jim Kelly stated that at the Board meeting of April 20, 2006, Controller Debbie Ratcliff made a presentation on GASB 45 which requires determining the unfunded liability for retiree health benefits and the three funding options available to the District. Also, staff discussed the pros and cons of each option. The Board had some questions that required further research. He stated that Attorney Lee Trucker from Trucker Huss is present to review the funding options, discuss the steps involved in setting up a GASB 45 trust, and to answer the outstanding questions. Controller Debbie Ratcliff introduced Mr. Trucker. She stated that the Board will be asked on June 1, 2006 if it wishes to set aside funds to cover future retiree health benefits. The decision on how to set up the funds can be made at a later date. Mr. Trucker stated that many agencies, including BART, have set up trusts for future retiree health benefits. The key issue is whether the District is going to start pre- funding future retiree health benefits, or use the "pay as you go" approach. If it is determined that funds are going to be set aside, then a decision must be made as to how the funds will be held. He discussed the pros and cons of establishing a trust versus a dedicated reserve. With regard to the question of appointment of trustees, Mr. Trucker stated that it is up to the Board to decide who to appoint. The trustees implement the investment policy approved by the Board. He stated that he also recommends annual audits of the account are required along with annual reports to the Board. At that time, the Board can change the investment policy or change the trustees. Member Lucey stated that his preference is the "pay as you go" approach or to set aside reserves. Director of Administration Randy Musgraves stated that the actuary's calculations showed that the District would have to save $92 million at 3% rate of return, or $59 million at 5% rate of return, over 30 years. Member Boneysteele concurred with Member Lucey, supporting the "pay as you go" approach. He stated that he does not support the hiring of an investment manager. Mr. Kelly stated that the Board will be asked to make a decision at its June 1, 2006 meeting regarding whether or not to start setting aside funds for post retirement health benefits. Book 54 - Page 151 Board Minutes of May 4, 2006 4) Acting General Manager/Director of Operations Jim Kelly announced that staff intends to advertise for bids for the A-Line Interceptor Rehabilitation Project, District Project 5806, starting on May 12, 2006. This project will repair approximately 40 defects in the PVC lining of the A-Line Interceptor within the cities of Martinez and Walnut Creek. The scope of work includes a general cleaning of the lines to be repaired, bypassing, dewatering, repairing existing PVC linings, coating of slide gates, and testing. The project is scheduled to start on August 1, 2006, and the contractor is being given 60 days to complete the work. The Engineer's Estimate for the work is $500,000. 5) Acting General ManagerlDirector of Operations Jim Kelly announced that, on Saturday, May 20,2006, the District will conduct a mobile household hazardous waste collection event in San Ramon. The event will be held at the San Ramon Services Center on Crow Canyon Road. It is the only mobile event the District has scheduled for this fiscal year. Electronic waste is not included in this event. Around 500 appointments are anticipated. Philip Services Corporation will schedule the appointments, set up and dismantle the site, and provide the labor needed to collect and properly manage wastes collected. District staff will also be in attendance. 6) Acting General ManagerlDirector of Operations Jim Kelly announced that, with regard to the Alhambra Valley Sewering Project, District Project No. 5919, staff met with National Park Service staff to develop a list of tasks and schedule for completing the environmental review process required to comply with the National Environmental Policy Act. The schedule calls for completion of the NEPA process by December 15, 2006 if the environmental review process finds there is no significant impact. Public meetings related to the NEPA review process are expected to be held in early July and October. Within 60 days after the NEPA process has been completed, the Park Service is expected to issue a right-of-way permit for construction of the trunk sewer across the John Muir National Historic Site. He stated that, as the Board was advised at the April 4, 2006 meeting, the trunk sewer will be constructed in two phases. The beginning and end sections of the sewer will be constructed this summer and fall. The middle piece of the sewer through the Park Service property is expected to be constructed in 2007. 7) Acting General ManagerlDirector of Operations Jim Kelly announced that the District has received a grant of $72,000 from the Bay Area Air Quality Management District for the installation of particulate filters on heavy duty vehicles. The filters remove diesel particulates, which have been identified as carcinogenic. About 14 of the District's fleet of rodders, hydro trucks, and dump trucks will be fitted with the filters. The filters are required as part of the California Air Resources Board's Risk Reduction Plan, and this grant will cover a substantial portion of the cost. 8) Acting General ManagerlDirector of Operations Jim Kelly announced that the South Quad Clarifier NO.4 was damaged in August 2005. The District and the contractor agreed to a scope of work for the repairs and to a 50/50 cost sharing on the repair costs. A settlement agreement was signed in January 2006. The District's cost ceiling is $187,176. Work began in January 2006, and the clarifier mechanism repair was completed by the end of March. The slab replacement was completed in April and the clarifier was turned over to Operations on Monday, May 1, 2006. 9) Acting General Manager/Director of Operations Jim Kelly announced that there will be a public workshop for the North Orinda Sewer Renovation Book 54 - Page 152 --L. Board Minutes of May 4, 2006 Project, Phase 2 on Thursday, May 25,2006, at 7:00 p.m. in the Garden Room at the Orinda Library at 24 Orinda Way in Orinda. The project consists of the renovation of existing 6, 8, and 10 inch sewers in 17 locations and spot repairs in another 9 locations. Approximately 13,500 feet of sewer will be renovated using open cut, pipe bursting, and directional drilling construction methods. The majority of the work is on private property easements. 10) Acting General ManagerlDirector of Operations Jim Kelly announced that the District participated in the April 22, 2006 Earth Day Festival at the John Muir National Historic Site in Martinez. The Central San display and handouts focused on pollution prevention and promoted the HHW Collection Facility. 11) Acting General ManagerlDirector of Operations Jim Kelly announced that, on May 3,2006, the State Water Resources Control Board adopted General Waste Di,scharge Requirements for all publicly-owned sanitary sewer collection systems in California by a 2-1 vote. The non-NPDES waste discharge requirements prohibit all sanitary sewer overflows that reach the waters of the United States, or that create a nuisance as defined in the Water Code. b. COUNSEL FOR THE DISTRICT District Counsel Kent Aim announced that a closed session is scheduled to be held at the conclusion of the regular agenda. c. SECRETARY OF THE DISTRICT None. d. BOARD OF DIRECTORS 1) Member Lucey, Chair of the Budget and Finance Committee, reported that the Committee reviewed the Expenditures and recommends approval. It was moved by Member Lucey and seconded by Member Boneysteele to approve the Expenditure List dated May 4,2006, including Self Insurance Check Nos. 102315 to 102318, Running Expense Check Nos. 160476 to 160646, and Sewer Construction Fund Check Nos. 28602 to 28631. Motion passed by unanimous vote of the Board. 2) Member Nejedly reported on the April 25, 2006 Ad Hoc CSO Committee meeting. He stated that two items were reviewed: the alternative layouts of the proposed CSO building and the status of the Caltrans lease project. He stated that the Committee felt the Caltrans lease project should proceed as planned, including addressing the failing retaining wall. He stated that, in the past, he has supported additions to staff at the CSO and agrees there is a need for a new facility. He stated that he hopes the Board can work together on a suitable design, and that he is prepared to vote on a conceptual plan, setting aside some final design decisions such as ensuring the installation of adequate showers. President Menesini concurred with Member Nejedly's comments and the need to proceed in a constructive manner. 3) Member Hockett reported on her attendance at the April 26-29, 2006 California Association of Sanitation Agencies (CASA) Conference. 4) President Menesini announced the upcoming Environmental Alliance meeting on May 15, 2006 regarding the 1906 Earthquake: Lessons Learned, Lessons Forgotten, and New Directions. Book 54 - Page 153 Board Minutes of May 4, 2006 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH DODSON ENGINEERS IN THE AMOUNT OF $90.000. TO PROVIDE PROFESSIONAL ENGINEERING SERVICES FOR THE DESIGN OF THE WET WEATHER BYPASS IMPROVEMENTS PROJECT. DISTRICT PROJECT NO. 7241 Senior Engineer Ba Than presented a report. He stated that staff is requesting that the Board authorize the General Manager to execute a professional engineering services agreement with Dodson Engineers in the amount of $90,000 for the design of the Wet Weather Bypass Improvements Project, District Project No. 7241. He described the project, which will install a new overflow structure from Basin B to Walnut Creek. With the upcoming expansion of the UV Disinfection Facilities, the peak wet weather flow capacity will be approximately 135 mgd. The emergency wet weather bypass system needs to have sufficient capacity to convey an additional 175 mgd, due to the possible peak flow of 310 mgd created by 25-year storms. He described the design issues, which include determining the size of the structure, number and size of gates, and type of culvert pipe. Coordination with outside agencies will also be necessary. The project will be designed through December 2006, with bids scheduled to be open in February 2007. The project will begin in May 2007 and is anticipated to be completed by October 2007. The preliminary estimate for the project is $1.2 million, and this will be re-evaluated during the design phase. It was moved by Member Lucey and seconded by Member Hockett to authorize the General Manager to execute a professional engineering services agreement with Dodson Engineers in the amount of $90,000, for the design of the Wet Weather Bypass Improvements Project, District Project No. 7241. Motion passed by unanimous vote of the Board. 10. APPROVAL OF MINUTES a. MINUTES OF APRIL 6. 2006 It was moved by Member Hockett and seconded by Member Boneysteele to approve the minutes of April 6. 2006. Motion passed by unanimous vote of the Board. 11. BUDGET AND FINANCE a. RECEIVE MARCH 2006 FINANCIAL STATEMENTS Controller Debbie Ratcliff presented a brief report on the March 2006 Financial Statements, including the status of the Running Expense Fund, Sewer Construction Fund, and Temporary Investments. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 13. ANNOUNCEMENTSISUGGESTIONS FOR FUTURE AGENDA ITEMS None. 14. CLOSED SESSION The Board recessed at 4:26 p.m. to reconvene in Closed Session in the Caucus Room regarding: a. Conference with Legal Counsel on existing litigation pursuant to Section 54956.9 (a) of the Government Code - Suzanne Renee Brown vs. Central Contra Costa Sanitary District, et al - Contra Costa County Superior Court Case No. C05-00416. b. Conference with real property negotiators Kenton L. Aim, Randall M. Musgraves, Ann Farrell, and Curt Swanson pursuant to Section 54956.8 of the Government Code. Book 54 - Page 154 .-L- Board Minutes of May 4, 2006 · Negotiations with Ron Askham of CONCO Cement concerning negotiations for easements across District property -APN 159-140-057 and APN 159-140-042. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION None. 16. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at 5:05 p.m. ~ Pre . ent of the Board of . ector , Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: ~JtpeK " Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 54 - Page 155