HomeMy WebLinkAboutBOARD MINUTES 06-01-06 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 1, 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, June 1, 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: Membe~: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS None. 3. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Hockett 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 Resolutions 2006-028 and 2006-029 accepting public sewer improvements and offers of dedication from Rebecca S. Lindstrom and Linhares Lane LLC, in the Alamo area, Job 5791, Parcels 2 and 3, and authorize staff to record documents with the Contra Costa County Recorder. b. Accept the contract work for the Solids Conditioning Building (SCB) Ventilation Improvements Project, Phase 2, District Project No. 7227 by Monterey Mechanical Company, and authorize the filing of the Notice of Completion. c. Accept the contract work for the Treatment Plant Protective Coating, Phase 3, District Project No. 7233 by Kaweah Construction Company, and authorize the filing of the Notice of Completion. d. Advise the Board of the closeout of the Walnut Creek Sewer Renovations, Phase 3, District Project No. 5929. e. Authorize two Chemists' attendance at Demonstrations of Inductively Coupled Plasma/Mass Spectrometers in Seattle, Washington. 4. HEARINGS a. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE FY 2006-2007 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF-INSURANCE FUND BUDGET AND FOR THE ESTABLISHMENT OF THE SEWER SERVICE CHARGE RATE FOR 2006-2007 OF $289, AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION General Manager Charles Batts stated that District Code and State law require holding public hearings for the establishment of the Sewer Service Charge rates and for placing the Book 54 - Page 166 Board Minutes of June 1, 2006 rates on the County tax rolls for collection. Although not required by law, the District will also hold a public hearing to receive comments on the 2006-2007 Operations and Maintenance (O&M) Budget, Debt Service Fund Budget, and the Self-Insurance Fund Budget. He stated that the Board will be asked to approve the 2006-07 O&M Budget, the Debt Service Fund Budget, and the Self-Insurance Fund Budget as well as to adopt a resolution establishing the Sewer Service Charge at a rate less than that in the 2004 ordinance and to approve a resolution authorizing collection of the 2006-07 Sewer Service Charge on the County tax rolls. Controller Debbie Ratcliff presented a brief report, stating that total District revenues are expected to be $85,764,000 and expenses $88,959,356. Fund balances will be drawn down by $3,195,356. She recapped the O&M budget and described key increases to the 2006-07 budget, most of which is caused by increases to salary and benefits. $5 million is also included for GASB 45 post retirement benefits, and this will remain unencumbered in the budget until the Board decides to take further action. Ms. Ratcliff stated that a public hearing is also necessary to authorize placing the sewer service charges on the County tax roll. Ms. Ratcliff explained that, while $5 million is being allocated for GASB 45, $2 million of that will be spent to pay for current retirement benefits. In response to a question from Member Lucey, Mr. Batts confirmed that the Board is not making a decision today on whether or not to establish a trust or dedicated reserve. Member Lucey requested information on what the ratepayer is paying when ad valorem tax is included. Ms. Ratcliff responded that the ad valorem tax amounts to approximately $71 residential unit equivalent (RUE) in addition to the $289 per RUE sewer service charge. The public hearings were opened and closed without comments. It was moved by Member Lucey and seconded by Member Nejedly to approve the FY 2006- 2007 Operations and Maintenance Budget, Debt Service Fund Budget and Self-Insurance Fund Budget. Motion passed by unanimous vote of the Board. It was moved by Member Hockett and seconded by President Menesini to adopt Resolution 2006-030, establishing the 2006-2007 Sewer Service Charge rate at $289 per RUE. Motion passed by the following roll call vote: AYES: NOES: Members: Members: Boneysteele, Hockett, Menesini Lucey, Nejedly It was moved by Member Hockett and seconded by Member Lucey to adopt Resolution 2006-031 authorizing collection of the FY 2006-2007 Sewer Service Charges on the County tax roll. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,316,000 TO KAWEAH CONSTRUCTION COMPANY, THE LOWEST RESPONSIVE BIDDER. AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT NOT TO EXCEED $70,000 WITH ATI ARCHITECTS AND ENGINEERS FOR THE CONSTRUCTION OF THE CHEMICAL FEED BUILDING RENOVATION PROJECT, DISTRICT PROJECT NO. 7226 Book 54 - Page 167 Board Minutes of June 1, 2006 General Manager Charles Batts stated that the Chemical Feed Building was part of the high lime treatment process envisioned in the initial operation of the treatment plant. The building was constructed over 30 years ago and needs structural and operational restoration. Work includes structural reinforcement, demolition of obsolete lime addition equipment, modification of the concrete diversion channel, and installation of new slide gates. The project was advertised in April and bids were opened on May 16, 2006. Senior Engineer Ba Than gave a brief overview of the project. He stated that the building is about 30 years old. During an inspection in 2004 corrosion was found in the concrete diversion channel. The proposed project will replace existing drop gates with new slide gates to facilitate expansion of the primary process. He described the scope of work, stating that the Engineer's Estimate is $950,000. Two bids were received, with the lowest bid being from Kaweah Construction in the amount of $1 ,316,000. He stated that the high bid could possibly result from rising metals prices, and an abundance of projects available for bidding. Other agencies have been experiencing the same problem. Member Nejedly asked Mr. Than if staff had considered delaying the project until the fall to attract more bidders. Mr. Than stated that the project needs to be completed during the low flow period during the summer. In response to a question from Member Hockett, Mr. Than responded that the District primarily stopped using lime in the primary tanks about 19 years ago but some lime was used up until about 6 years ago. Director of Operations Jim Kelly confirmed that it is staff's intention to use part of the building as a warehouse, since it would be quite expensive to demolish it. It was moved by Member Hockett and seconded by Member Nejedly to award a construction contract in the amount of $1 ,316,000 for construction of the Chemical Feed Building Renovation Project, District Project No. 7226 to Kaweah Construction Company, the lowest responsive bidder, to authorize the General Manager to execute contract documents, and to authorize the General Manager to execute a professional services agreement not to exceed $70,000 with ATI Architects and Engineers. Motion passed by unanimous vote of the Board. 7. REPORTS a. GENERAL MANAGER 1) Sanitary Sewer Overflow (SSO) Waste Discharqe Requirements General Manager Charles Batts stated that the State Water Resources Board adopted statewide SSO provisions as a Waste Discharge Requirement (WDR) for all Collection Systems in May, 2006. The program is similar in many ways to that of Regional Board which the District is already required to meet, except it will be implemented statewide. The goal of the program is to reduce collection system overflows statewide. The District has been working toward this goal with a focus on increased cleaning schedules and construction projects. Collection System Operations Division Manager Bill Brennan described the program scope. He stated that the program was adopted on May 2, 2006 by the State Water Resources Control Board. The District must submit an application for coverage under the WDR by December 2, 2006. Electronic reporting must begin by December 2, 2006 if the State is ready. Otherwise, the District will continue reporting to the Regional Board. A Sewer System Management Plan (SSMP) must be completed by May 2, 2009. He summarized by stating that the program will create an electronic database that anyone can access. The WDR will exert pressure statewide to reduce sewer system overflows and the District will continue to take measures to reduce such overflows. Book 54 - Page 168 Board Minutes of June 1, 2006 2) Review Draft Pipeline Newsletter General Manager Charles Batts stated that the District's spring Pipeline newsletter is being prepared for printing and mailing. The Board has received a draft copy for review and comment. The typical cover story for this issue dealing with the Sewer Service Charge is attached as two draft rate articles, and the appropriate one will be incorporated, based on the Board's decision. Communication Services Manager Harriette Heibel reviewed the newsletter and asked for Board input or comments. She stated that the newsletter will be mailed out towards the end of June. Member Hockett complimented staff on the layout and content of the newsletter. 3) Repair to NO.4 South Quad Clarifier General Manager Charles Batts stated that the Treatment Plant Protective Coating and Piping Renovations Project, Phase 3, has been completed. This project includes the repair work to South Quad Clarifier NO.4 for damage sustained in August 2005. Assistant Engineer Nathan Hodges presented a report on the and showed photographs of where piping has been repaired. He described the project and stated that repair of the clarifier has been completed at a total cost of $167,839. 4) General Manager Batts announced that bids for construction of the Phase 1 segment of the Alhambra Valley Trunk Sewer Project will be opened on June 20, 2006. If the bids are in order, the Board will be asked to award the construction contract for the Phase 1 portion of the project on July 6, 2006. He stated that staff is also completing an agreement with Security Owners Corporation to provide sewer service to a 23-home subdivision in the Alhambra Valley. In early 2004, Security Owners Corporation offered to contribute $400,000 toward design and construction of a gravity trunk sewer to serve the Alhambra Valley in lieu of constructing a temporary pumping station and forcemain to serve their development. Staff plans to present the service agreement for approval by the Board on June 15, 2006. 5) General Manager Batts announced that the District has previously used Valley Engineering to aid in the inspection for developer projects during the heavy summer construction season. Valley Engineering plans to use Tom Trice, a District retiree as their employee to work with the Development Inspection Work Group for 8 to 12 weeks this summer due to the continuing high demand for main sewer extension and side sewer installation. Mr. Trice is an employee of Valley Engineering Group, which has an existing Technical Engineering Services Contract with the District. 6) General Manager Batts announced that open enrollment for Kaiser and HealthNet is underway through June 19, 2006. The District is having a Health and Safety Fair on June 2, from 11 :00 am. to 2:00 p.m. in the Multi-Purpose Room. Vendors for safety products, as well as all the benefit providers, will be available to answer questions. 7) General Manager Batts announced that attorneys Hansen Bridgett will be providing Harassment Avoidance training for the District in June. All District employees will be required to attend one of six sessions that will be held during the last two weeks of June. The training meets the State requirement for two hours of interactive Harassment Avoidance training for supervisors. Attendance at this type of training is required for supervisors every two years starting January 2006. Book 54 - Page 169 Board Minutes of June 1, 2006 8) General Manager Batts announced that District staff recently purchased a six- month strip of natural gas for the period January through June 2007 for $8.89 per decatherm. This purchase completes the FY 2006-2007 natural gas prepurchases with an aggregate burner tip price of $8. 56/DT. This expense represents an increase of 16 percent over FY 2005-2006 but is approximately 2 percent less than the budgeted amount. This purchase occurred at a six month low for the period of purchase and reflects advice from the natural gas experts. Natural gas prices are projected to increase substantially, especially if a major hurricane hits the Gulf Coast. 9) General Manager Batts announced that Senior Engineering Assistant Rick Hernandez will be traveling to Denver, Colorado to attend the International Right of Way Association's Annual Education Conference. The conference will be held June 18 through 21, 2006. The focus of this conference deals solely with engineering, acquisition and appraisal of rights of way. Travel to this out of state conference is included in the 2005-06 Engineering Department budget. b. COUNSEL FOR THE DISTRICT District Counsel Aim stated that a Section 998 offer of $300,000 has been made to Suzanne Brown. c. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced that District Counsel Kent Aim has put together a two-hour ethics training session in compliance with AB 1234. The training may be conducted during a regular or special board meeting at no additional cost to the District. She stated that staff also recommends that the "designated employees" also required to attend the training should be the General Manager, Department Directors, and Secretary of the District. Board Members requested that the training be conducted at a board meeting scheduled solely to conduct the training some time after August. They concurred with the recommendation that the General Manager, Department Directors, and the Secretary of the District be the employees designated to receive the training. d. BOARD OF DIRECTORS 1) Member Hockett, Chair of the Budget and Finance Committee, reported that the Committee reviewed the Expenditures and recommends approval. It was moved by Member Hockett and seconded by Member Boneysteele to approve the Expenditure List dated June 1, 2006, including Self Insurance Check Nos. 102325 to 102330, Running Expense Check Nos. 160839 to 160995, and Sewer Construction Fund Check Nos. 28670 to 28711. Motion passed by unanimous vote of the Board. 2) Member Nejedly reported on the May 25, 2006 Personnel Committee Meeting. The Board received the report without comments. 3) President Menesini announced the upcoming Environmental Alliance meeting on June 19, 2006 regarding Risk and Regulation. 8. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH HARRIS AND ASSOCIATES IN AN AMOUNT NOT TO EXCEED $300,000 TO PROVIDE RELIEF INSPECTORS FOR THE 2006 SUMMER CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS General Manager Charles Batts stated that the Engineering Department will be providing construction management and inspection services for most District construction projects this Book 54 - Page 170 Board Minutes of June 1, 2006 summer. The District normally supplements some construction inspection work with outside services. The Board is being asked to authorize the General Manager to execute an agreement with Harris and Associates to provide the construction inspectors for this year's projects. It was moved by Member Nejedly and seconded by Member Lucey to authorize the General Manager to execute a professional engineering services agreement with Harris and Associates in an amount not to exceed $300,000 to provide relief construction inspection services for the construction of the District's summer 2006 capital improvement projects. Motion passed by unanimous vote of the Board. 9. APPROVAL OF MINUTES a. MINUTES OF MAY 4.2006 It was moved by Member Hockett and seconded by Member Nejedly to approve the minutes of May 4, 2006. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE a. RECEIVE APRIL 2006 FINANCIAL STATEMENTS Controller Debbie Ratcliff presented a brief report on the April 2006 Financial Statements, including the status of the Running Expense Fund, Sewer Construction Fund, and Temporary Investments. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 13. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at 3:03 p.m. v1(ahO / President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: ~~ Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 54 - Page 171