Loading...
HomeMy WebLinkAboutBOARD MINUTES 03-05-09 MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 5, 2009 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, March 5, 2009. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, Lucey, McGill, Menesini, Nejedly ABSENT: Membe~: None 2. CLOSED SESSION The Board recessed at 2:01 p.m. to reconvene in closed session to confer with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: Labor Counsel Allison Woodall, Esq.; Director of Administration Randall Musgraves, Human Resources Manager Cathryn Freitas, Secretary of the District Elaine Boehme Employee Organizations: Employees' Association, Public Employees' Union, Local One; CCCSD Management Support/Confidential Group (MS/CG); CCCSD Management Group. The Board reconvened in open session in the Board Room at 2:43 p.m. 3. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance. 4. INTRODUCTIONS The Board welcomed newly-hired Painter Jim Griffis and congratulated Clint Jackson and David Clayton on their promotions to Shift Supervisor. 5. PUBLIC COMMENTS None. Book 58 - Page 187 Board Minutes of March 5, 2009 6. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member McGill to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve expenditures dated March 5, 2009. Reviewed by Budget and Finance Committee. b. Receive January 2009 Financial Statements. Reviewed by Budget and Finance Committee. c. Approve minutes of February 5, 2009 Board meeting. 7. HEARINGS a. CONDUCT A HEARING TO CONSIDER AN APPEAL OF THE STAFF DECISION REGARDING ASSESSMENT OF A $4.923 CAPACITY FEE FOR A SECOND RESIDENTIAL UNIT CURRENTLY UNDER CONSTRUCTION AT 2156 GRANITE DRIVE IN ALAMO AND THE PROPERTY OWNER ALAN SCHURR'S REQUEST FOR A WAIVER OF THE CAPACITY FEE DUE AT THE TIME OF CONNECTION General Manager James Kelly stated that, under the District Code's appeal provisions, Mr. Alan Schurr, the owner of the property at 2156 Granite Drive in Alamo, has requested that the Board hold a hearing to consider staff's decision to assess a capacity fee for a new second living unit currently under construction on his property, and that the Board waive assessment of the fee. He stated that, because District Counsel Kent Aim advised staff that he cannot act as Counsel to the Board due to his acting as staff Counsel, Mr. Aim's colleague Rich Pio Roda will advise the Board. Mr. Pio Roda stated that the Board may deny the appeal, grant the requested waiver, or fix a fair and equitable charge or offer. Principal Engineer Jarred Miyamoto-Mills presented a report to the Board, stating that an application for wastewater utility service for a second residential unit at 2156 Granite Drive in Alamo was processed at the District's Permit County in April, 2004, prior to the County's building permit review. The plans were stamped ''The proposed structure may not be connected... until... applicable connection fees are paid." During the building permit process, the County waived $11,205 in Transportation Impact Fees. The new building was ready to connect to the sewer in January, 2009. The owner requested that the capacity fee and annual sewer service charge be waived. Staff responded that, under the District Code, fees and charges cannot be waived by staff. The owner filed an appeal of the staff decision. Book 58 - Page 188 Board Minutes of March 5, 2009 Mr. Miyamoto-Mills stated that occasionally similar requests for fee waiver or relief for affordable housing are received. The District's past practice has been to deny these requests so as not to require some customers to subsidize others. He concluded his report, stating that staff recommends denial of the appeal. The hearing was opened. Alan Schurr, appellant, spoke in support of his appeal. He submitted documentation regarding his application for construction of a secondary living unit. He stated that he was not aware of the District's fees and asked that they be waived as he cannot afford to pay them. The hearing was closed. Following discussion, it was moved by Member Menesini and seconded by Member Hockett to deny the appeal and the property owner's request for a waiver of the capacity fee. Motion passed by unanimous vote of the Board. The Board directed staff to work with Mr. Schurr to develop a possible payment plan and to report back to the Board. 8. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER General Manager James Kelly requested that the Recycled Water Committee Report be heard immediately prior to Item 10.a.3). Item 9.b. was also taken out of order. 9. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $810.000 TO C. OVERAA & COMPANY, THE LOWEST RESPONSIVE BIDDER FOR THE TREATMENT PLANT PIPING RENOVATIONS. PHASE 4. DISTRICT PROJECT 7216: FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS General Manager James Kelly stated that Phase 4 of the Piping Renovations Project continues the District refurbishment of the Plant and improves safety. Staff recommends award of the contract to C. Overaa, the lowest responsive bidder. It was moved by Member Hockett and seconded by Member McGill to find that the project is exempt from the California Environmental Quality Act (CEQA); to award a construction contract to C. Overaa & Company; and to authorize the General Manager to execute the contract documents as recommended. Motion passed by unanimous vote of the Board. Book 58 - Page 189 -~-----'_.~-___"~____"._'_._._"_._~__~--;_..,."~fi"__,___._._..__________..._____.........___..,...___.,'.._.~.__.._,____._.__...__,_...__."__.._ Board Minutes of March 5, 2009 b. CONSIDER NCCI. INC.'S BID PROTEST: IF BID PROTEST IS DENIED. AWARD A CONSTRUCTION CONTRACT TO THE LOWEST RESPONSIVE BIDDER F.D. THOMAS. INC. IN THE AMOUNT OF $1.823,101: AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE A~RATION AIR RENOVATIONS (PHASE 2). DISTRICT PROJECT 7274: AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) General Manager James Kelly stated that bids were opened on January 21,2009, for District Project 7274, Aeration Air Renovations Phase 2. Of the nine bids submitted, F.D. Thomas, Inc was the low bidder in the amount of $1,823,101. On January 28, 2009, NCCllnc., submitted a timely bid protest. District staff and Legal Counsel reviewed the issues presented by NCCI and the response by F.D. Thomas, and have concluded that the bid submitted by F.D. Thomas is responsive. NCCI is not in attendance. It is staff's recommendation that the Board deny NCCl's bid protest and award the construction contract to F.D. Thomas. It was moved by Member Lucey and seconded by Member Menesini to find that the project is exempt from the California Environmental Quality Act (CEQA); to reject the bid protest; to award a construction contract to F.D. Thomas, Inc.; and to authorize the General Manager to execute the contract documents as recommended. Motion passed by unanimous vote of the Board. 10. REPORTS a. GENERAL MANAGER 1) Proposed chanaes to Fees. Rates and Charaes General Manager James Kelly stated that, each year, staff reviews the fees, rates and charges for new connection, environmental and development-related services to determine whether to recommend any changes for the Board's consideration. Principal Engineer Jarred Miyamoto-Mills gave a brief report on the results of this year's evaluation. He stated that staff recommends increasing capacity fees from $4,923/RUE to $5,298/RUE for Gravity Zone (7.6 percent increase), and from $6,509/RUE to $6,949/RUE for Pumped Zone (6.8 percent increase). Staff recommends environmental services and development-related rates and charges reflect revisions to address the actual cost of services. If adopted, 54 fees would remain unchanged, 7 would increase, 8 would decrease, and one new fee would be added. Two fees would be restructured. Book 58 - Page 190 Board Minutes of March 5, 2009 Public outreach will be conducted to the Home Builders' Association, applicants, developers, engineers, business owners and contractors. Meetings will be held with customers. It is proposed to schedule the public hearing on the fee changes for April 16,2009, with fees to be effective July 1, 2009. 2) Update on Financial Workshop General Manager James Kelly presented an update on the follow-up from the Board's Financial Workshop on January 29, 2009. He stated that, with regard to the Proposition 218 schedule, the Board will be asked to agree on a rate notice on April 2, 2009, with a hearing to set rates scheduled for June 4, 2009. Operations and maintenance (O&M) expenses are projected to be on budget, but O&M revenue is expected to be down 1.86 percent due to fewer connections, lower interest, and a reduction in business sewer service charges to due the drought and less business. Capital expenses are expected to be $2.3 million over budget due to late progress billing on the A-Line Project last year. Capital revenue is expected to be down $2.7 million and staff expects to draw the sewer construction fund down by $5.6 million. He stated that a $1 increase in the sewer service charge would provide $170,000 of revenue to the District. A one percent salary increase for employees would amount to a $2.80 increase in the sewer service charge, and loss of the ad valorem tax would equate to a $73 increase in the sewer service charge. He stated that the bid climate is good with bids coming in at 10-20 percent lower than the Engineer's estimates. There may also be financing opportunities from the Federal Government. Mr. Kelly stated that there is no need to develop a "tax take" response in the immediate future. Any tax takeaway would require either a major sewer service charge increase or spending cut and may require short-term borrowing or bonds. He stated that staffs revised recommendation is to issue a Proposition 218 notice for a sewer service charge increase of up to $10 in 2009-10, and to consider pursuing a bond for capital projects, if necessary, to smooth rates. He stated that the recommendation is made because there are considerable risks to a multi-year Proposition 218 notice: the District may not be able to sell bonds; the economy could worsen; and health care and retirement costs could increase more than expected. Book 58 - Page 191 --"-~-~--~---'---'-_._--_.~,-_..,,-_._.__._._,._.".__.- .__.,------_.._--_._.._-+--~._---,.,...-,-. --,. Board Minutes of March 5, 2009 3) Recveled Water Update General Manager James Kelly stated that, at the Board's request, the Board Recycled Water Committee, District Counsel, and District staff have been involved in a rigorous process of analyzing all the institutional and legal barriers to implementing a large scale recycled water project. This analysis has surfaced the need to address the provisions of the current General Agreement with Contra Costa Water District (CCWD). If the Board wishes to terminate this agreement, notice must be given to CCWD by April 6, 2009. Director of Engineering Ann Farrell reviewed some of the discussion that took place at the Committee level. She described the history of the recycled water program and explained the General Agreement with Contra Costa Water District (CCWD), which was negotiated in 1994. The agreement was amended in 2004 and the term reduced to five years with a termination provision. She stated that there are currently 11 miles of recycled water pipelines and about 30 metered connections in Zone 1 (Pleasant Hill, Concord and Martinez). 2008 annual recycled water use comprised 220 million gallons sold for landscape irrigation and commercial uses, and 400 million gallons used internally by the District at the treatment plant. She described the District's attempts to expand its landscape irrigation program with the A-Line Expansion project, stating that the addition by CCWD of the requirement for double check valves increased the cost of the project by $1 million, making the project not cost effective. CCWD has also resisted implementation of a project to supply the local Martinez refineries with needed water. CCWD concerns include loss of revenue if industrial water users converted to recycled water; possible increase in salinity at the CCWD fresh water intake in the Delta; and possible loss of water rights. Ms. Farrell provided information regarding the General Agreement and questioned whether the agreement is the appropriate tool for encouraging recycled water projects. She pointed out that, since being amended in 2004, few significant users have been added to Pleasant Hill Zone 1 and no significant backbone extension has occurred. Attempts by the District to significantly expand landscape irrigation were stopped by costly increased backflow prevention requirements. Attempts by the District to supply local refineries were met with a series of CCWD concerns and no cooperation or interest in such a project. She stated that staff concludes that the General Agreement has not facilitated the development of new significant recycled water projects, either for landscape irrigation or industrial recycling. Staff recommends terminating the General Agreement and working with CCWD to determine their interest in crafting a new agreement that would more effectively facilitate expansion of recycled water use. Book 58 - Page 192 Board Minutes of March 5, 2009 Board Members asked staff to schedule the matter for action on the next Board agenda. 4) General Manager James Kelly announced that the National Association of Clean Water Agencies (NACWA) Annual Pretreatment and Pollution Prevention Workshop on March 25-27, 2009 is in Charlotte, North.. Carolina. Environmental Compliance Superintendent Tim Potter will be attending so that he can keep abreast of national trends with the core pretreatment and pollution prevention activities. The subjects being covered include: emerging pollutants and their effect on reclaimed water programs, antimicrobial pesticides, pressure to protect storm water quality by directing to sanitary sewer systems, and dental amalgam programs. This conference is included in the Source Control budget for the current fiscal year. 5) General Manager James Kelly announced that Assistant Engineers Nate Morales and Edgar Lopez volunteered on behalf of the District to judge the Hidden Valley Elementary Science Fair in Martinez. It is an annual event at which the Engineering Department provides volunteers every year. 6) General Manager James Kelly announced that four District employees took part in the California Water Environmental Association's Pollution Prevention Conference in Monterey earlier this week. Environmental Compliance Superintendent Tim Potter served as a Conference Awards Chair and headed a panel on Pre-treatment Programs that included Environmental Compliance Inspector Jeff Skinner on Permit Reinvention- Mobile Washing Program. On another panel, Melody Labella of Environmental Services spoike on Pollutant Prioritization. Lastly, Communication Services Manager Michael Scahill gave a presentation on Public Education and Outreach via The Pipeline Newsletter. 7) General Manager James Kelly announced that the two new 2 MW standby generators for the Standby Power Facility Improvements Project are nearing manufacturing completion and are tentatively scheduled to be factory tested at the Detroit DiesellMTU facility in Mankato, Minnesota on March 17 and 18, 2009. These generators are critical to the reliability of the Treatment Plant and it is important to verify their performance prior to shipment. The District will be sending Senior Engineer Dave Reindl and Associate Engineer Craig Mizutani to witness the factory testing. In addition, Assistant Engineer Clint Shima will attend to assist with the testing and to obtain training in how to perform factory witness testing for equipment. The cost of travel was included in the project budget. Book 58 - Page 193 "~_."-----"'""'-~'~_"'_________"_'~'M"_"___"_'___"'"__~'_"___,.._________.,_,.,,_.____.__________"___._.__~__. Board Minutes of March 5, 2009 8) General Manager James Kelly announced that the South Orinda Sewer Renovations (Phase 4) Project is part of the ongoing Collection System Renovation Program. Multiple phases of sewer renovations are planned for South Orinda. The project will replace approximately 11,000 linear feet of 6-, 8-, and 10-inch sewer lines within public right-of-way and easements. Open-cut, pipeburst, and horizontal directional drilling methods will be used. The project will be advertised on March 12 and 19, 2009. Bids will be opened on March 31,2009. The construction cost is currently estimated at $1,900,000. More information will be presented when the Board is asked to approve the construction contract on April 16, 2009. 9) General Manager James Kelly announced that the design of the Solids Handling Improvements Project DP 7260, is nearing completion and the work will be advertised for bids later in March. The major goal for this project is to improve dewatered sludge handling capability to address emergency or non-routine operation. The existing sludge truck loading station was not designed for processing the entire sludge production for any length of time. Therefore, a properly designed sludge truck loading station is required. This project includes the construction of a sludge truck loading facility with odor control facilities and sludge cake hoppers to store sludge cake generated in overnight hours or on holidays during emergency sludge hauling operation when landfills are closed. Staff plans to request award of the project at the May 7, 2009 Board meeting. The Engineer's construction cost estimate is $3,600,000. Construction of the project should be completed by February 2010. 10) General Manager James Kelly announced that two water leaks were identified on the third floor of the Headquarters Office Building. The leak in the Executive Conference Room was due to a leaking plug on one of the water valves related to the HVAC System. The other leak in the Administration work area was due to a missing plug on a roof mounted electrical box. Both leaks have been corrected. Neither leak is related to the recently installed new roof. 11) General Manager James Kelly stated that the City of Orinda requested that the District and East Bay Municipal Utility District (EBMUD) make a second joint presentation at the March 3, 2009 City Council Meeting on their respective construction projects that will impact Miner Road this summer. At the City Council's request, notices requesting public input were sent to approximately 1,850 residences that may be impacted by the projects. Approximately 20 residents attended the meeting and provided input/asked questions. Based on the input from the public, the City Council voted to authorize EBMUD to close Miner Road above Oak Arbor Book 58 - Page 194 Board Minutes of March 5, 2009 Road this summer from 9 a.m. to 9 p.m. because it has the shortest construction schedule. The road closure will benefit the District's project by reducing the traffic flow through its construction area. 12) General Manager James Kelly announced that the District will playa significant role at the California Water Environmental Association (CWEA) Conference this year. Eight employees will be presenting or co-presenting papers; two serve on the CWEA Board/Statewide CWEA Operators Committee; and one will serve as a session moderator. Two are attending in recognition of receiving the District Safe Worker of the Year Award and Operator of the Year Award. And finally, two are attending as potential awards recipients and one using his manager training allowance. President Nejedly asked the General Manager to see if he could reduce the number of attendees. Member Hockett asked that the most economical transportation methods be used to keep costs to a minimum. 13) General Manager James Kelly announced that the District will host a public workshop on the South Orinda Sewer Renovation Project, Phase 4 at Del Rey Elementary School in Orinda located at 25 EI Camino Moraga on Tuesday, March 10, 2009 from 7:00 p.m. to 8:00 p.m. The project will replace/rehabilitate approximately 11,500 feet of 6, 8 and 10-inch sewer pipe at several different sites in Orinda using both open cut and pipe- bursting methods. Staff has already spoken to 63 residents who will be affected by easement work on their property. 14) General Manager James Kelly announced a Wet Weather Update. 15) General Manager James Kelly announced that the District's Source Control Program is periodically evaluated by the U.S. Environmental Protection Agency, the San Francisco Bay Regional Water Quality Control Board, and/or contractors of these agencies to ensure that the federal Pretreatment Program Standards are being effectively implemented. Two contracted Tetra Tech staff completed this year's Pretreatment Compliance Inspection (PCI). They were new to reviewing the District's pretreatment program and the format followed in previous years. Systron-Donner located in Concord and Varian located in Walnut Creek were the sites selected for on-site review. Both businesses were identified by Tetra Tech as meeting the pretreatment standards. Book 58 - Page 195 Board Minutes of March 5, 2009 As with all of these evaluations, some issues (3 to 4) were identified in the exit interview that will require a response from the District. All of these issues were identified as recommendations but some may shift to requirements as the report is finalized. The final report will be available in approximately 60 days, if the state agencies provide timely turnaround. A report will be prepared for the Board after receipt of the final PCI report. 16) General Manager James Kelly announced that the District employs utility locating services to accurately locate existing utilities in streets and easements. This information is utilized during the design process to develop the alignments for new District facilities. This project will be advertised on March 6 and 11,2009. The bids will be opened on March 23,2009. The construction cost is currently estimated at $180,000 ($60,000 per year for up to 3 years). More information will be presented when the Board is asked to approve the construction contract on April 2, 2009. b. COUNSEL FOR THE DISTRICT District Counsel Kent Aim reported settlement agreement with KB Homes in the amount of $100,000. He also reported that the case of Daniel and Eileen Scanlon v. Kandi Kaufman, et al; Lorraine Kaufman v. Daniel Scanlon, et al - Cross-Complaint - Contra Costa County Superior Court Case No. C06-01976 has been settled for $870,000, with the District's obligation being $100,000. c. SECRETARY OF THE DISTRICT No reports. d. BOARD MEMBERS 1) Board Member reports on future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses; recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses. Member Hockett Members Hockett and McGill reported on the February 23, 2009 Recycled Water Committee meeting and summarized the Action Summary. General Manager James Kelly gave the General Manager Report on Recycled Water immediately following the Committee report. Book 58 - Page 196 ..."--'---~_._~'-_.._"_.,,--,._'"-,---~.__..._-+-. .'._~'~", ....--".._._.".._._-".._-._._---,._~---_._,----_._--,_..__._..~---_.__...,"....._"....,.-,,-,-_.._,,_.,-"...,-_...~._~'" Board Minutes of March 5, 2009 Members Hockett and McGill reported on the February 24, 2009 Outreach Committee meeting and summarized the Action Summary. Board Members received the report without comments. Members Hockett and Lucey reported on the February 26, 2009 Human Resources Committee meeting and summarized the Action Summary. The Board received the report without comments. Member Hockett announced that she will be attending the California Association of Sanitation Agencies (CASA) Legislative Conference in Washington, D.C. Member Lucey Member Lucey and President Nejedly reported on the March 2, 2009 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comments. Member McGill Member McGill provided a written report on his meeting attendance, including the February 25, 2009 meeting with City of Walnut Creek officials. Member McGill announced that he will attend the Mayors' Conference on March 5; Supervisor Uilkema's Breakfast on March 19; a meeting with Assembly Member Nancy Skinner on March 6; a tour of West County Wastewater District Facilities on March 6; the Contra Costa Land Use Task Force meeting on March 11; the Pleasant Hill Chamber of Commerce Mixer on March 11; and the Contra Costa Water Task Force meeting on March 17. Member McGill announced that he met with Contra Costa Water District Board Member Joe Campbell on February 20; with Tesoro officials and President Nejedly and the General Manager on February 26; with Assembly Member Joan Buchanan, Board Member Menesini and the General Manager on February 27; and with Shell officials and the General Manager on March 3. Book 58 - Page 197 Board Minutes of March 5, 2009 11. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE THREE PROFESSIONAL SERVICES AGREEMENTS TOTALING $600.000 TO PROVIDE RELIEF INSPECTORS FOR THE 2009-2010 CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS WITH VALLEY ENGINEERING GROUP IN THE AMOUNT OF $350.000; VAll COOPER & ASSOCIATES IN THE AMOUNT OF $150,000: AND THE COVELLO GROUP IN THE AMOUNT OF $100,000 General Manager James Kelly stated that Engineering Department staff provides construction management and inspection duties on most District projects, and supplements with consultant inspectors if and when needed. An evaluation of the workload for the 2009-2010 construction season indicates that hiring up to six additional inspectors and one assistant surveyor is necessary. In January 2009, staff requested proposals from seventeen professional engineering service and personnel firms, and received seven proposals. After evaluation of the proposals, staff selected three firms, and requests the Board to authorize execution of professional services agreements with these firms for a total of $600,000. President Nejedly stated that, if staff needs additional permanent positions, he would support such a request. It was moved by President Nejedly and seconded by Member McGill to authorize the General Manager to execute professional services agreements with Valley Engineering Group, Vali Cooper & Associates, and the Covello Group as recommended. Motion passed by unanimous vote of the Board. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly asked staff to look into deferring assessing sewer connection charges on new developments until occupancy. 14. REPORT OUT OF CLOSED SESSION None. Book 58 - Page 198 Board Minutes of March 5, 2009 15. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:17 p.m. ~ /., -Jemes-A:- . y- ~ichael cGill President of the Board of Dir ctors, Pro Tern Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: .Q2&~~. Elaine R. Boehme Secretary of the Central Contra Costa ,Sanitary District, County of Contra Costa, . State of California Book 58 - Page 199