Loading...
HomeMy WebLinkAboutBOARD MINUTES 11-02-06 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 2, 2006 The District Board of the Central Contra Costa Sanitary District convened in a regular session in the Board Room at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, November 2, 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. ADOPT A RESOLUTION COMMENDING RICH LUTHY UPON HIS RETIREMENT AS GENERAL MANAGER OF FAIRFIELD SUISUN SEWER DISTRICT Board Members congratulated Mr. Luthy on his retirement. It was moved by Member Hockett and seconded by Member Lucey to adopt Resolution 2006-013. Motion passed by unanimous vote of the Board. 4. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Hockett to approve the Consent Calendar, consisting of Items a. through d., as recommended, to adopt resolutions, and to authorize recordings. Motion passed by unanimous vote of the Board. a. Adopt Resolutions 2006-114 and 2006-115, accepting a grant of easement (District Project 5646 - Parcel 12) and authorizing execution of a quitclaim deed to Christopher P. Brown and Christi Brown (2129 Hoover Avenue, Pleasant Hill, District Project 1551 - Parcel 44 (Portion) and District Project 993 - Parcel 1 (Portion)), and authorize staff to record documents with the Contra Costa County Recorder. b. Adopt Resolution 2006-116, accepting a grant of easement from Pleasant Hill Recreation and Park District (District Project 5659 - Parcel 1 ), and authorize staff to record documents with the Contra Costa County Recorder. c. Accept the contract work for the A-Line Interceptor Rehabilitation Project, District Project 5806, and authorize the filing of the Notice of Completion. Book 55 - Page 38 Board Minutes of November 2, 2006 d. Establish December 7,2006 as the date for a public hearing to declare as surplus District land adjacent to the filter plant on the treatment plant site known as the Alum Ponds, and to authorize staff to execute an extension to the lease agreement with Contra Costa Water District. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 8.a. was taken out of order and considered immediately following adoption of the Consent Calendar. 8. ENGINEERING a. CONSIDERATION OF ADOPTING A RESOLUTION ESTABLISHING THE ALHAMBRA VALLEY ASSESSMENT DISTRICT POLICY General Manager James Kelly stated that, in August 2006, the Board conceptually approved a financing plan for residents of the Alhambra Valley to connect to the Alhambra Valley Trunk Sewer or extend public sewers to serve their neighborhoods. The Board directed staff to prepare a formal policy statement and procedures for establishment of a financing plan. He stated that staff is requesting that the Board consider the policy and procedures for the Alhambra Valley Assessment District included in the Board packet. Mr. Kelly stated that staff notified residents of the Alhambra Valley that the Board would consider the sewer financing plan at this meeting. Environmental Services Division Manager Curt Swanson presented a summary of the key elements of the proposed financing plan, the purpose of which is to improve the environment in the Alhambra Valley, assist residents who wish to connect to the public sewer, and to recover costs expended by the District. The estimated cost of the trunk sewer is $4 million, and the estimated cost to extend the sewer to neighborhoods is approximately $3.5 million. The $1,800,000 capacity fees would be financed over a 15-year period instead of being collected at time of connection. The financing program will be voluntary, and will consist of separate assessment districts rather than one large district. Assessment districts will need to be formed within three years after trunk sewer completion, which is anticipated to be completed in 2007. Funds for the project will come from District reserves and/or bank loans. The loan period would be 15 years, and interest rates would be the LAIF rate or the bank rate plus a 1 percent administration fee. There would be a minimum fixed interest rate of 6 percent. He stated that, unlike previous assessment districts, participants would not have to pay costs for non-participants. The District would front the costs for non-participants and would be reimbursed as they connect to the sewer in the future. A minimum of three homes would be necessary to create an assessment district. Once created, residents will have 18 months to complete construction of the sewer. Mr. Swanson described the costs eligible for financing and costs not eligible for financing. He showed charts illustrating the anticipated trunk sewer project cost recovery and typical homeowner sewer costs for direct and indirect connections. He recommended that the Board adopt a resolution approving the financing plan policy as proposed. In response to a question from Member Hockett, Mr. Swanson confirmed that the proposed financing program does not contain a prepayment penalty. Book 55 - Page 39 Board Minutes of November 2, 2006 In response to a question from Member Nejedly, Mr. Swanson stated that, while there could be as many as 16 separate assessment districts under the proposed Alhambra Valley Assessment District Program, a better estimate would be 9 t010 separate assessment districts due to the configuration of the neighborhoods and the level of interest in connecting to the public sewer system. If the participants in the program were required to absorb the costs of the non-participants, rather than the District as proposed, the cost to connect for the participants would increase by approximately $15,000-$20,000 per residence. Member Lucey inquired why the District is guaranteeing the financing program rather than a bank, as in the past, and why multiple assessment districts are necessary. District Counsel Kent Aim stated that bonds could be issued, but the bonding companies require substantial information and the program would have to be adjusted. One assessment district could be established, but there would still need to be divisions due to the configuration of the area. Member Lucey inquired why the District was proposing to permit the payment of the capacity fee over time, which has not been done before. Mr. Swanson responded that the approximate capacity fee is $6,000 per residence and that, since the cost is already high, permitting it to be paid over time would encourage more people to hook up. Member Lucey expressed concern regarding the District's ratepayers in effect subsidizing the Alhambra Valley financing program in the manner proposed. He reiterated his concerns regarding not utilizing bond issuance or bank loans and the extended payment of the capacity fee. He also objected to the District carrying the financial obligation for the residences that do not connect to the trunk sewer, rather than spreading it among those that do, as in the past. General Manager James Kelly responded to Member Lucey's concerns, stating that many of the financing program conditions were established due to the high cost of connection, and in an attempt to make connecting to the trunk sewer more financially accessible to residents. He stated that restaurants are permitted to pay their capacity fees over a longer period of time also. Member Lucey requested information regarding how much the cost would increase if the National Park Service does not grant an easement and how long it would delay the project. General Manager James Kelly responded that the project would be delayed months not years because staff has an alternative route, and that the costs for that alternative route have not been fully developed yet. President Menesini stated that the trunk sewer project corrects a serious environmental problem, which is extremely important. He stressed that the success of the project relies on residences connecting to the trunk sewer, and making the connection fees accessible to all residents is very important. Member Hockett stated that the assessment districts should be established to meet the needs of the neighborhoods, and that flexibility is important. Member Nejedly expressed support for the financing program and thanked the residents for their support in working with the District. Member Nejedly noted the Alhambra Valley financing program is unique because the District came to the Alhambra Valley residents, not vice versa. There were no public comments. It was moved by President Menesini and seconded by Member Hockett to adopt Resolution 2006-117, establishing the Alhambra Valley Assessment District Policy as recommended. Motion passed by the following vote of the Board: Book 55 - Page 40 Board Minutes of November 2, 2006 AYES: NOES: ABSTAIN: Members: Members: Members: Boneysteele, Hockett, Nejedly, Menesini Lucey None 6. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONTRACT IN THE AMOUNT OF $ 65.000 TO CHRISP COMPANY. THE LOWEST RESPONSIVE BIDDER. FOR THE SURVEY MONUMENT RESTORATION CONTRACT FOR A ONE-YEAR PERIOD. WITH AN OPTIONAL EXTENSION FOR TWO ADDITIONAL ONE- YEAR PERIODS General Manager James Kelly stated that the survey monument restoration blanket contract will provide an efficient approach to rebuilding survey monuments that are damaged or destroyed during construction. The State of California Business Code requires that survey monuments be referenced prior to construction and properly restored after construction under the supervision of a licensed surveyor. On October 23,2006, two bids were received ranging from $65,000 to $80,730. District staff recommends awarding the contract to Chrisp Company, the lowest responsive bidder with a bid of $65,000. It was moved by Member Hockett and seconded by Member Nejedly to award a contract in the amount of $65,000 to Chrisp Company, the lowest responsive bidder, for the Survey Monument Restoration Contract for a one-year period, with an optional extension for two additional one-year periods. Motion passed by unanimous vote of the Board. b. HEARING TO CONSIDER DECLARING THE BID SUBMITTED BY SUBTRONIC CORPORATION TO PROVIDE UNDERGROUND UTILITY LOCATING SERVICES AS NON-RESPONSIVE AND AUTHORIZING AWARD OF CONTRACT TO EXARO TECHNOLOGIES CORPORATION IN THE AMOUNT QL$45.353 FOR THE FIRST YEAR AND EACH ADDITIONAL YEAR General Manager James Kelly stated that the Capital Projects Division employs utility locating services to accurately locate existing utilities in streets and easements. This information is used during the design process to develop the alignments for new District facilities. On October 23, 2006, two bids were received ranging from $40,660 to $45,353. The apparent low bidder, Subtronic Corporation, placed conditions on their bid of $40,660. Placing conditions on a bid are clearly prohibited in the District's bid specifications. The District Board of Directors, at its discretion, may reject a bid that contains conditions. The Board of Directors must first conduct a responsiveness hearing before making a decision. Associate Engineer Sasha Mestetsky presented a report, stating that Subtronic Corporation submitted the apparent low bid at the bid opening on October 23, 2006. Their bid contained several conditions, and staff and legal counsel consider the bid to be non-responsive. He stated that staff recommends declaring the bid submitted by Subtronic Corporation as non-responsive and authorize the award of contract to Exaro Technologies Corporation, the lowest responsive bidder. The hearing was opened and closed without comments. In response to questions, Mr. Mestetsky stated that Subtronic Corporation explained that the bid was prepared by an inexperienced employee who was not aware of the restriction. Book 55 - Page 41 Board Minutes of November 2, 2006 It was moved by Member Hockett and seconded by Member Nejedly to declare the bid submitted by Subtronic Corporation to provide Underground Utility Locating Services as non-responsive, and to award the contract to Exaro Technologies Corporation in the amount of $45,353 as the lowest responsive bidder, for a one-year period, with an optional extension for two additional one-year periods. Motion passed by unanimous vote of the Board. 7. REPORTS a. GENERAL MANAGER 1) Review of draft Pipeline Newsletter Community Affairs Representative Bonnie Lowe reviewed the proposed Fall 2006 edition of the Pipeline newsletter. Board Members had no changes. 2) Alhambra Vallev Trunk Sewer Proiect. Phase 1 Update General Manager James Kelly stated that construction of Phase 1 of the Alhambra Valley Trunk Sewer was completed on October 6, 2006 and accepted by the Board on October 19, 2006. The project consisted of the installation of 3,000 feet of 10 and 12-inch pipe by open cut method, 8 manholes, and 32 lateral extensions within a heavily traveled two-lane road. Construction occurred within both City and County rights of way and required coordination with both agencies. Assistant Engineer Nancy Molina provided an update on how the project progressed during construction and showed photographs. She stated that the contractor for the project was Mountain Cascade, Inc., and the project cost was $1,554,280. Construction was completed on October 6,2006. 3) Attendance of Member Hockett at California Association of Sanitation AQencies (CASA) Executive Board MeetinQ on November 13-15,2006 General Manager James Kelly stated that Board Member Hockett will attend the California Association of Sanitation Agencies Executive Board Meeting on November 13 through 15, at East Bay MUD's conference facility at the Pardee Reservoir. Member Hockett will make a report on the meeting at the December 7 Board meeting. The Board confirmed Mr. Kelly's announcement. 4) General Manager James Kelly announced that a scoping meeting for the environmental assessment for the Alhambra Valley Trunk Sewer crossing on the John Muir site was held at Martinez Junior High on Wednesday, October 25,2006 at 7:00 p.m. The meeting was conducted jointly by District and National Park Service staff. The meeting was attended by five Alhambra Valley residents and one member of the Friends of Alhambra Creek. The residents were primarily concerned about impacts to their property if an alternative route to the route across the John Muir site is chosen. The two alternatives to the John Muir site cross the private property of several of the residents who attended the meeting. These residents wanted to be certain that the Environmental Assessment adequately addresses the environmental and other impacts to their private property which would occur if an alternate route is chosen. The representative of the Friends of Alhambra Creek was concerned about the depth of the sewer at the creek crossing. She wanted to ensure that the pipe is deep enough so that there is no potential for the pipe to be exposed due to scour of the bottom of the creek. Staff will work with the National Park Service to ensure that these concerns are addressed in the Environmental Assessment. Book 55 - Page 42 Board Minutes of November 2, 2006 5) General Manager James Kelly announced that Security Owners Corporation (SOC) of Concord is developing a 23-unit subdivision in the Alhambra Valley. Under a sewer service agreement between SOC and the District, SOC agreed to contribute $400,000 toward the cost of construction of the Alhambra Valley Trunk Sewer in two equal installments. The District has received the first payment of $200,000. The second and final payment will be made within ten days after award of the construction contract for Phase 2 of the trunk sewer project. Staff anticipates award of the Phase 2 contract in April or May, 2007. 6) General Manager James Kelly congratulated Board Member Jim Nejedly on his ten years of service to the District. Member Nejedly was elected to the Board in November 1996. Announcements 4-6 were presented as a memo in the Board packet 7) General Manager James Kelly stated that the District began taking a moderate volume of landfill gas on October 24, 2006. After two days, staff increased the volume of landfill gas usage while tuning the Auxiliary Boilers. The increased gas flow caused excessive condensate to affect the boiler operation and staff switched back to natural gas. Bulldog Gas and Power is looking at further options to resolve the condensate issues. It appears that in the near term the volume of landfill gas used may have to be restricted to avoid further condensate problems. Staff will update the Board further as more information becomes available. 8) General Manager James Kelly stated that he has distributed a piece from the San Ramon Observer website regarding the upcoming election. 9) General Manager James Kelly drew the Board's attention to an article in the Contra Costa Times regarding the high bid climate, stating that bids received by East Bay MUD were coming in at one-third higher than expected. b. Counsel for the District No reports. c. Secretary of the District No reports. d. Board Members 1) Member Hockett, Chair of the Budget and Finance Committee, reported that the Committee received a report on the proposed Alhambra Valley Trunk Sewer Financing Plan. The Committee also considered amending the reimbursement policy for District Counsel's attendance at CASA conferences. Member Hockett stated that the District Counsel's contract provides for attendance at and reimbursement for CASA conferences. The Committee recommended that the matter be brought to the full Board for consideration at a later date if the Board wishes. Member Hockett stated 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 November 2, 2006, including Self Insurance Fund Check Nos. 102804 to 102805, Running Expense Regular Check Nos. 163412 to 163555, and Sewer Construction Fund Check Nos. 29450 to 29479. Book 55 - Page 43 Board Minutes of November 2, 2006 Motion passed by the following vote of the Board: AYES: NOES: Members: Boneysteele, Hockett, Lucey, Nejedly Members: Menesini 2) Member Boneysteele reported on the October 26, 2006 Real Estate Committee meeting. The Board concurred with the proposal to rename Waterbird Way to Maltby Road. 3) Member Hockett reported on the October 31, 2006 Recycled Water Committee meeting. 8. ENGINEERING b. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONSULTANT AGREEMENT WITH TREADWELL AND ROLLO FOR $102.000 TO PROVIDE PROFESSIONAL ENGINEERING SERVICES FOR THE SCB DIESEL LEAK INVESTIGATION. DISTRICT PROJECT 7225 General Manager James Kelly stated that, in 2001, diesel fuel was discovered in the basement of the Solids Conditioning Building. Further investigation revealed a pin-hole leak in the diesel transfer line near the northeast corner of the Solids Conditioning Building. The leak was repaired, but there appeared to be residual diesel in the groundwater and soil. Additional soil and groundwater samples were taken to identify the extent of any diesel plume, but the results were inconclusive. In order to clearly delineate the extent of any diesel plume, Treadwell and Rollo recommends the installation of three permanent groundwater monitoring wells near the SCB and the Grayson Creek levee. Staff recommends that the Board approve the agreement with Treadwell and Rollo for professional engineering services for the SCB Diesel Leak Investigation, District Project 7225. It was moved by Member Nejedly and seconded by Member Hockett to authorize the General Manager to execute a consultant agreement with Treadwell and Rollo for $102,000 to provide professional engineering services for the SCB Diesel Leak Investigation, District Project 7225. Motion passed by unanimous vote of the Board. 9. APPROVAL OF MINTUES a. MINUTES OF OCTOBER 5.2006 It was moved by Member Hockett and seconded by Member Boneysteele to approve the minutes of October 5, 2006. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE a. RECEIVE SEPTEMBER 2006 FINANCIAL STATEMENTS Controller Debbie Ratcliff presented a brief report on the September 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. Book 55 - Page 44 Board Minutes of November 2, 2006 13. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at 3:15 p.m. /~~4.~~~ 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 55 - Page 45