HomeMy WebLinkAboutBOARD MINUTES 04-09-09
MINUTES OF THE SPECIAL BOARD MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON APRIL 9, 2009
The District Board of the Central Contra Costa Sanitary District convened in a special
meeting at its regular place of meeting at the District Offices at 5019 Imhoff Place,
Martinez, County of Contra Costa, State of California, at 2:00 p.m. on April 9, 2009.
President Pro Tem McGill called the meeting to order and requested that the Secretary
call roll.
1. ROLL CALL
PRESENT: Members: Hockett, Menesini, McGill
ABSENT: Members: Lucey, Nejedly
a. PLEDGE OF ALLEGIANCE TO THE FLAG
Board and staff joined in the Pledge of Allegiance to the Flag.
2. PUBLIC COMMENTS
None.
3. REPORTS AND ANNOUNCEMENTS
None.
4. CAPITAL PROJECTS BOARD WORKSHOP
a. OVERVIEW OF THE FISCAL YEAR 2009-2010 DRAFT CAPITAL
IMPROVEMENT BUDGET AND DRAFT 2009 TEN-YEAR CAPITAL
IMPROVEMENT PLAN
General Manager James Kelly introduced Ms. Ann Farrell, Director of Engineering,
stating that she will present an overview of the Fiscal Year 2009-2010 Draft Capital
Improvement Budget (CIB) and the Draft 2009 Ten-Year Capital Improvement Plan
(CIP).
Ms. Farrell gave an overview of her presentation, stating that she will review the Board’s
role in Capital planning and future challenges, review the planned 2009-10 Capital
expenditures, review individual programs and selected 2009-10 Capital projects, revisit
future planning challenges, and review the next steps in the Capital budgeting process.
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Board Minutes of April 9, 2009
Ms. Farrell stated that the Board’s primary role is to authorize the budgets for the
various Capital Programs. She stated that total required authorization for the 2009-10
fiscal year is $68,522,000. The required authorization is estimated based on projections
for the funds carried over from previous years.
The next steps in the CIB/CIP process are to hold the public hearing on June 4, 2009, at
the same time as the other budget hearings, which is a different procedure from prior
years when the CIB/CIP public hearing was held in advance of the other budget
hearings. If the proposed $10 sewer service charge increase is not approved at that
time, the CIB/CIP revenue and cash flow sections will need to be revised and therefore
the CIB/CIP hearing needs to coincide with the rate setting hearing. Closeouts of
completed projects will be scheduled for approval on June 18, 2009.
The Capital Program should be revisited in November 2009 with regard to the amount
of stimulus money received, increasing revenues by $30 million in bond sales, reducing
capital expenditures, adding projects to reduce greenhouse gas emissions, and other
aspects of the program. If necessary, mid-year adjustment could be made.
Ms. Farrell stated that the recommended expenditures for the Collection System are
$15,151,000; $13,769,000 for the Treatment Plant; $10,637,000 for General
Improvements; and $550,000 for Recycled Water. It is projected that expenditures will
be reduced due to a favorable bid climate. A revised expenditure estimate has been
developed which assumes projects bid in 2009-10 come in 20 percent lower than the
Engineer’s Estimate.
Ms. Farrell noted that the bidding process is being streamlined this year by piloting a
new Planet Bids program in which bidders will be able to access bid documents through
the District’s web site.
COLLECTION SYSTEM PROGRAM
Ms. Farrell reviewed the Collection System Program. The total Collection System
Program expenditures are budgeted at $15,161,000. The ten-year CIP of $331 million
includes approximately $94 million or almost 30 percent of the CIP for Collection
System renovation. She stated that 1,100 miles of 1,500 miles of sewer have been
inspected to date to determine condition and prioritize renovation projects. The CIP
calls for renovating 60 miles of sewer over the next ten years.
The A-Line, Phase 2 Project is nearing completion and the total project cost will be
approximately $23.3 million. The final activity on this project will be the gravity tie in of
the city of Concord flows, which are currently pumped. This tie in is expected to occur
in the April-June 2009 time frame. A joint celebration with the city of Concord has been
discussed for when the tie in is complete.
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Board Minutes of April 9, 2009
TREATMENT PLANT PROGRAM
Ms. Farrell stated that the Treatment Plant Program focuses mainly on renovation. She
described the Plant Hydraulic Model, and using Asset Management techniques for
capital project forecasting. The District will focus on capital project forecasting by
anticipating the retirement and refurbishment of assets and planning for adequate
funding. NexGen software will be used to manage the data.
She stated that the Ten-Year Treatment Plant Capital Improvement Program does not
budget for projects to respond to climate change and greenhouse gas regulations.
Regulations being developed for greenhouse gas reductions could have significant
impacts.
RECYCLED WATER PROGRAM
Ms. Farrell stated that $550,000 has been budgeted for 2009-10, $340,000 of which is
allocated to Zone 1 Recycled Water Phase 1C, and $210,000 for study and planning of
remaining recycled water projects, including Industrial Reuse at the Martinez Refineries
and reuse at the Concord Naval Weapons Station. No money is currently budgeted in
the ten year CIP for construction of a large scale recycled water project.
GENERAL IMPROVEMENTS PROGRAM
$10,637,000 has been budgeted for General Improvements, of which the majority is for
the Collection System Operations Department (CSOD) Facility Improvements Project.
Ms. Farrell stated that an update on the CSOD Project will be presented to the Board at
the April 16 Board meeting. Bidding and award of the project is expected to occur in
August/September 2009.
b. REVIEW DRAFT INFORMATION TECHNOLOGY DEVELOPMENT BUDGET
FOR 2009-2010
The Information Technology (IT) Development Budget was reviewed in detail by the
Capital Projects Committee. No presentation was made.
SUMMARY
Ms. Farrell summarized that total expenditures for 2009-10 are budgeted at
$40,117,000, but expenditures could be reduced to $36,200,000 or less due to the
current favorable bid climate. Total revenues are budgeted at only $25,238,000, which
assumes a sewer service charge increase of $10. Thus revenue is budgeted at almost
$11 million less than expenditures and will result in a significant draw down of the
Sewer Construction Fund Balance.
In order to continue the current aggressive Capital Plan and maintain an adequate
Sewer Construction Fund Balance, staff is investigating the desirability of bond
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Board Minutes of April 9, 2009
financing some needed projects which will benefit future rate payers. She discussed
projects totaling over $30 million that would be suitable for bond financing. In addition,
$34+ million in budgeted projects have been submitted for stimulus funding. The
competition for stimulus funds is significant, but if any such funds are received, this will
also be input into the capital funding cash flow picture. At this time staff is
recommending continuing with the current aggressive Capital Budget and Capital Plan.
The CIB/CIP will be reevaluated in November, 2009 to determine if the ten year planned
expenditures are sustainable given the then current revenue structure.
5. ADJOURNMENT
There being no further business to come before the Board, President Nejedly adjourned
the meeting at 3:09 p.m.
Ja~A. Nejedly / '
P esident of the Board of Directors,
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGNED:
C~~
Elaine R. Boehme
Secretary of the Central Contra Costa
Sanitary District, County of Contra Costa,
State of California
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