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HomeMy WebLinkAboutBOARD MINUTES 02-15-07 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 15, 2007 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, February 15, 2007. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: ABSENT: Members: Hockett, Lucey, McGill, Menesini, Nejedly None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Board Members welcomed newly-hired Communication Services Manager, Michael Scahill. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Hockett to approve the Consent Calendar, with the exception of Item j., to adopt resolutions, and to authorize recordings. Motion passed by unanimous vote of the Board. a. Adopt Resolution 2007-013 accepting an offer of dedication from Windemere BLC Land Company LLC, accepting public sewer improvements (Job 5705- Parcel 2; East Branch Parkway, San Ramon), and authorize staff to record documents with the Contra Costa County Recorder. b. Adopt Resolution 2007-014 accepting an offer of dedication from Shapell Industries for easements shown on the recorded final map of Subdivision 8686 in the Dougherty Valley, accepting Job 5721 public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. Book 56 - Page 31 Board Meeting of February 15, 2007 c. Adopt Resolution 2007-015 accepting an offer of dedication from Brookfield Cambridge LLC for easements shown on the recorded final map of Subdivision 8776 in the Dougherty Valley, accepting Job 5748 public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. d. Adopt Resolution 2007-016 accepting an offer of dedication from Citrus Walk, LLC for easements shown on the recorded final map of Subdivision 8672 in Walnut Creek, accepting Job 5751 public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. e. Adopt Resolution 2007-017 accepting an offer of dedication from Lennar Homes of California, Inc. for easements shown on the recorded final map of Subdivision 8777 in the Dougherty Valley, accepting Job 5755 public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. f. Adopt Resolution 2007-018 accepting an offer of dedication from Shapell Industries, Inc. for easements shown on the recorded final map of Subdivision 8681 in the Dougherty Valley area of San Ramon, accepting Jobs 5331,5729, and 5760 public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. g. Accept the contract work for the San Ramon Forcemain Mitigation Project, District Project 5924, and authorize filing of the Notice of Completion. h. Accept the contract work for the Low Voltage Power Circuit Breakers Upgrade for Substation 40 Project, District Project 7235, and authorize the filing of the Notice of Completion. i. Accept the contract work for the Morello Bridges Repair Project, District Project 5642, and authorize the filing of the Notice of Completion. k. Approve staff attendance at the annual California Association of Sanitation Agencies (CASA) Conference. I. Approve staff attendance at the California Climate Action Registry Conference. m. Adopt Resolution 2007-019 appointing Alan R. Grieb to the position of Plant Operations Division Manager, M-24 ($9,752 - $11,854), effective February 16, 2007. Item j. was removed from the Consent Calendar for discussion by Member Menesini. J. Authorize the General Manager to execute a "Mutual Consent to Extend License" agreement with East Bay Regional Park District (EBRPD) for the Lafayette/Moraga Regional Trail at the Moraga Pumping Station. Book 56 - Page 32 Board Meeting of February 15, 2007 Member Menesini stated that the item relates to installing a bridge across the Moraga Creek Trail, which is adjacent to the Moraga Pumping Station. He asked whether the bridge is already built and whether EBRPD is going to recognize the District's contribution in some manner. General Manager James Kelly responded that the bridge has already been built and that the license agreement requires that the District be recognized as the donor. The EBRPD has been asked to address that. In response to a question from Member Menesini, District Counsel Kent Aim stated that there are provisions in the agreement that protect the District from liability. He responded to Member McGill that the District does not have a general policy relating to co-use of facilities with EBRPD. Member Lucey reminded the Board that this is only approximately ten yards of District property. He stated that the bridge is the property of the EBRPD, not the District. It was moved by Member Menesini and seconded by Member McGill to approve Item j. Motion passed by unanimous vote of the Board. 4. HEARINGS a. PUBLIC HEARING TO CONSIDER ADOPTING ORDINANCE 241 ADJUSTING BOARD MEMBER COMPENSATION AND ESTABLISHING ANNUAL COMPENSATION REVIEW General Manager James Kelly stated that, at its meeting on January 11,2007, the Board set a public hearing for today to consider adjusting Board Member compensation. Secretary of the District Elaine Boehme presented a report, stating that Board Member compensation was last increased in 2001, when it went from $100 per meeting to $170 per meeting. No increases have been implemented since that time. The Health and Safety Code and Water Code allow for an annual increase of up to 5% per calendar year. The Board may, if it wishes, increase the compensation from the current $170 per meeting up to $221 per meeting because increases not taken in 2001-2007, or by some other amount. She also stated that the Board may consider whether it wishes to incorporate into the ordinance an automatic review of Board Member compensation. This could be included as part of the annual budget hearings in June of each year, at which time the Board could decide whether or not it wishes to adjust the compensation. She noted that, as required by Water Code Section 20204, if adopted, the ordinance cannot take effect until 60 days after its passage, which would be April 16, 2007. The public hearing was opened and closed without comments. Book 56 - Page 33 Board Meeting of February 15, 2007 Board Members agreed to adopt the increase as permitted by the Health and Safety Code and Water Code, and to establish an automatic annual review of Board compensation. It was moved by Member Lucey and seconded by Member Hockett to adopt Ordinance No. 241, increasing Board Member compensation from $170 to $221 per meeting, as permitted by the Health and Safety Code and Water Code, effective April 16, 2007; and establishing an automatic annual review to be held with budget hearings each year. Motion passed by unanimous vote of the Board. b. PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION 2007-020 TO ACCEPT PROPOSED MODIFICATIONS TO DISTRICT LOCAL DISCHARGE LIMITS General Manager James Kelly stated that the Federal pretreatment regulations require local agencies to set and update Local Discharge Limits using the guidelines and models established by the US Environmental Protection Agency. Staff completed a formal evaluation of the current Local Discharge Limits and identified several pollutants of concern that needed to have the Local Limits lowered. Source Control Superintendent Tim Potter stated that local discharge limits are required under the Federal Clean Water Act. The purpose is to set discharge limitations on controllable sources, mainly from businesses using a model and guidelines that are established by the U.S. Environmental Protection Agency. He explained that the treatment plant loading from controllable and uncontrollable flows are assessed with the goal of meeting effluent limits and protecting the treatment plant's operations. Copper, mercury and other pollutants with very stringent limits in the District's permit are the primary drivers of this review and lower limits will protect the District's compliance status. He stated that staff is proposing discharge prohibitions for specified pollutants on the list that would result in very low local limits using the model's method for calculation of limits. The calculated limits would be well below the detection limit of the current analytical methods. General Manager James Kelly added that several of the pollutants proposed for discharge prohibition have already been banned for use. Member Lucey expressed concern that the District often proposes tougher limits than required, and then suffers from the anti-backsliding provision. District Counsel Aim clarified that anti-backsliding relates to discharge limits, rather than what flows into the plant. Book 56 - Page 34 Board Meeting of February 15, 2007 Mr. Potter stated that the District does not have a lot of users of the prohibited products, apart from dry cleaners. He stated that staff is proposing to establish discharge prohibition so that Best Management Practices can be used to determine compliance rather than conducting testing. He stated that there are under eighty dry cleaners in the District with on-site dry cleaning operations. In response to a question from Member Lucey, Mr. Potter stated that the discharge prohibition is their current operating standard because the hazardous waste limit is lower than the District's current Local Discharge Limit and should not cause any additional hardship on the dry cleaners. District Counsel Kent Aim confirmed that the discharge prohibition of perchloroethylene is known and understood by the dry cleaning industry. Mr. Potter stated that the proposed reduction in other pollutant levels is not expected to have a significant effect on the District's regulated industries with the exception of copper, lead, and mercury. He stated that there are detectable quantities of copper, lead and mercury coming from uncontrollable sources so the loading of these pollutants that can be allocated to controllable sources is relatively small. In response to a question from Member Lucey, Mr. Potter stated that the dentists will not be tested. If they install amalgam separators, they will be deemed in compliance. Any businesses with a mercury source will have to be issued a permit. In response to question from Member Lucey, Mr. Potter responded that all laboratories will be evaluated, including educational laboratories, which will amount to 100-200 facilities. Some mayor may not need permits due to options available to eliminate potential sources of the targeted pollutants such as using mercury free thermometers. Some industries will need to upgrade their treatment capabilities, and staff has been working with them over the last several years. The delayed implementation date in the resolution will allow additional time to work with the businesses. Businesses affected by the new local limits include manufacturing facilities, machine shops, vehicle service facilities, car washes, labs, and dental facilities. Approximately 80-100 manufacturing facilities and 50 machine shops will be affected by the need to issue a permit. In response to concerns expressed by Member Lucey, Mr. Potter stated that he is not expecting to close down any business, although modifications may be necessary to either implement Best Management Practices or possibly installing pretreatment equipment. Member Menesini inquired about outreach efforts to date. Mr. Potter stated that seven workshops have been held, segregated by permitted and unpermitted industries. Flyers were direct mailed to over 2,400 potentially affected businesses. A total of 28 people attended all the workshops. Many attendees were already familiar with the proposed Book 56 - Page 35 Board Meeting of February 15, 2007 changes. Some concerns regarding the new local limits were expressed by permitted industries. Mr. Potter stated that Source Control currently manages 90-100 permits. After the new limits are imposed, more than 330 permits will be issued to dental operations, and another 300-400 facilities will be affected including the vehicle service manufacturing sector. In conclusion, he reported that 863 pretreatment inspections were performed over the past year, and 43 notices of violation and 45 warning notices issued for the 2006 calendar year. The public hearing was opened and closed without comments. Member Menesini stated that pretreatment is very important and very complex. He stressed the importance of ensuring the District is in compliance with its permit and protecting the system. Member Hockett asked how many additional staff will be required to put the new limits into place and include outreach and education. Mr. Potter stated that his division will work with Communication Services on outreach and will provide updates to the Outreach Committee. He stated that he requested and filled one Senior Inspector position, partly related to this program. He stated that staff is working on streamlining the process and does not have a firm sense of how many more staff will be needed, but possibly only one or two. Member Hockett stressed the importance of communication, outreach and education, which should be looked at from a District-wide perspective and effectively coordinated. Member Lucey expressed concern with the proposed resolution and questioned whether the additional workload can be accomplished without an additional 3-4 staff members. He stated that he feels uncomfortable with the proposal and lack of information and numbers. Member Nejedly stated that the District should focus its attention on assisting the businesses to comply, rather than regulating them. The amalgam separator program worked well and was accomplished in a spirit of cooperation with the dental community. Education is very important. Member Nejedly stated that staff should take on some of the responsibility for compliance rather than making it the sole responsibility of the business. He stated that he would not support the adoption of the resolution. Member Hockett stated that adoption of the local limits is necessary to comply with the permit. She again stressed the importance of education and outreach, and working cooperatively with the affected businesses. Book 56 - Page 36 Board Meeting of February 15, 2007 Member Menesini concurred with Member Hockett, saying that the District really has no choice but to adopt the local limits. The District must comply with EPA regulations. He stated that his major concern is that the public be treated well and that the District not go beyond what it is legally required to do. General Manager James Kelly concurred that the District has no option but to adopt local limits. He stated that, if the Board wishes, the matter could be continued and more definitive information be obtained regarding number of affected businesses. Member Hockett stated that she did not feel a need to postpone the item. Director of Engineering Ann Farrell suggested that an alternative would be to adopt local limits but not to adopt the September 1, 2007, deadline. Staff could come back with more information on how the program will be implemented. It was moved by Member Menesini and seconded by Member Hockett to adopt Resolution 2007-020, adopting the proposed modifications to the Local Discharge Limits as recommended. Staff is to bring back information regarding proposed outreach and education. Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill, Menesini Lucey, Nejed Iy None c. PUBLIC HEARING TO CONSIDER ADOPTING ORDINANCE 242 MODIFYING TITLE 10 OF THE DISTRICT CODE General Manager James Kelly stated that Federal pretreatment regulations require the District to implement and enforce a Source Control Ordinance. Recent Federal regulatory changes, and the need to update the Source Control program, have prompted a review of Title 10 of District Code, the Source Control Ordinance. Source Control Superintendent Tim Potter reported on the proposed changes to Title 10, their effects on the regulated businesses, and the District's proposed outreach to the regulated businesses. He stated that the regulations are a mandatory element of a pretreatment program under the Federal Clean Water Act. He stated that most of the changes are beneficial to businesses, although some businesses will be subjected to additional standards. The reasons for the proposed Title 10 revisions include the need to implement the Pretreatment Streamlining Rule, an opportunity to improve Source Control operations, and to incorporate some of the Local Discharge Limit recommendations. The Pretreatment Streamlining rule was adopted by the U.S. Environmental Protection Agency in 2005, and consists of both mandatory and voluntary elements. If adopted, these will improve flexibility in regulating permitted businesses. Book 56 - Page 37 Board Meeting of February 15, 2007 Improvements to Source Control operations include enhanced oversight of waste haulers' disposal documentation, and establishment of clear standards for maintaining interceptors and traps. The proposed changes will increase the flexibility that Source Control can use to work with regulated businesses to control the quality of process wastewater discharged to the District. Public outreach has included seven workshops with affected businesses, and more than 2,400 direct mail announcements. Twenty-eight people attended the workshops. Additional direct mailing to affected businesses is planned. The effects on regulated businesses from the proposed Title 10 revisions include the requirement to document disposal location for waste haulers and generators, and the enforced cleaning of interceptors and traps, including food service facilities and vehicle service facilities. There will be some flexibility to customize the standards through the use of a variance procedure. The public hearing was opened and closed without comments. Members Menesini and McGill commented on the complexity of the topic and how it can be made more understandable for customers. Member Menesini stated that, while fats, oil and grease are easily identifiable, he has concerns about other, unidentified solutions entering the waste stream. It was moved by Member Hockett and seconded by Member Menesini to adopt Ordinance No. 242, modifying Title 10 of the District Code (Source Control Ordinance). Motion passed by the following vote of the Board: AYES: NOES: ABSENT: Members: Members: Members: Hockett, McGill, Menesini Lucey, Nejedly None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER The closed session was taken out of order due to a scheduling conflict for the District Counsel. 6. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A 25-YEAR LICENSE AGREEMENT WITH THE EAST BAY REGIONAL PARK DISTRICT FOR PROPERTY ON BERRELLESA STREET IN MARTINEZ (MARTINEZ SHORELINE PARK) Book 56 - Page 38 Board Meeting of February 15, 2007 General Manager James Kelly reported that, at the last Board meeting, Board Member Menesini requested that this item be removed from the consent calendar and considered at the February 15, 2007, meeting. Environmental Services Division Manager Curt Swanson discussed the basic conditions of the proposed license agreement, which include a 25-year term for use of District property at the end of Berrellesa Street. The agreement allows for parking and use of trailhead, and the bridge foundation. The agreement requires the Park District to maintain the property and to install a sign that recognizes that the District has made this property available. The Park District has paid a $2,000 processing fee. The bridge across the Alhambra Creek is part of the Martinez Regional Shoreline Park and Martinez Waterfront Park. It was installed as a joint marsh enhancement and access project by East Bay Regional Park District, the City of Martinez and Caltrans. In response to a question from Member Menesini, Mr. Swanson described the location of the District's sewer lines. He confirmed that the bridge was built without permission from the District. It was his understanding that the City of Martinez believed it was constructing the bridge on East Bay Regional Park District property. It was moved by Member Menesini and seconded by Member McGill to authorize the General Manager to execute the license agreement as recommended. Motion passed by unanimous vote of the Board. 7. REPORTS a. GENERAL MANAGER 1) Update on Annual Title V Report General Manager James Kelly stated that, on December 6, 2006, the BAAQMD reissued the District's Title V Major Facility Review Permit. The permit is reviewed and revised every five years to accurately reflect any changes in regulatory requirements. The District spends a substantial amount of time ensuring the compliance with the Title V permit. Director of Plant Operations Doug Craig reported on permit activities in 2006, permit compliance record, and changes in the new permit. He described the major facility review permit. He stated that a Title V, or Major Facility Review Permit, is issued to any facility that emits or has the potential to emit 100 tons per year of criterion pollutants, or any facility that emits 10 tons per year of air toxics. He summarized the comments that District staff provided on the draft permit. He stated that the reporting requirements are onerous, with monthly, quarterly, semi- annual and annual reports required. He described the compliance requirements, which include opacity and particulate requirements, as well as data archiving. Book 56 - Page 39 Board Meeting of February 15, 2007 The annual permit is $26,800; in addition, Title V testing costs amounting to $150,000-$200,000 over the five year permit. Two to three full-time equivalent staff is necessary to maintain the emission monitoring equipment and data archiving required by Title V. In 2006 the District received one Notice of Violation, but was not been fined by the Bay Area Air Quality Management District. 2) Update on Pollution Prevention ProQram - 2006 Pollution Prevention Report and 2007 Pollution Prevention Plan General Manager James Kelly stated that, each February, as required by the NPDES permit, District staff submits an annual report of pollution prevention activities for the previous calendar year. Assistant Engineer Melody LaBella provided an update on the District's Pollution Prevention Program and highlights of the 2006 Pollution Prevention Annual Report and 2007 Pollution Prevention Plan. She described the District's program, which includes the Household Hazardous Waste Collection Facility, the Source Control Program, community outreach and cooperative partnerships. She listed the pollutants of concern and stated that the highest priority is mercury. Efforts to reduce mercury levels include the mandatory dental amalgam separator program, the thermometer exchange, and targeted outreach at amateur gold miners. She presented highlights of the 2006 Pollution Prevention Report. The Household Hazardous Waste Facility collected almost 1.9 million pounds of hazardous waste in 2006, and 13,000 pounds of pesticides. Over 1,200 mercury thermometers were collected and 95,000 feet of fluorescent lamps. As a result, almost 90 pounds of mercury was collected and kept out of the waste stream. She described the Source Control Program, which included over 863 pretreatment and 910 stormwater inspections in 2006. Public outreach efforts include partnerships with schools, the Pipeline newsletter, the Sewer Science program and Water Wizards program. The District also has partnerships with Bay Area Clean Water Agencies, Contra Costa Green Business Program, and Bay Area Stormwater Management Agencies Association. For 2007, the program focus will include implementation of new Local Discharge limits and Title 10 update, as well as implementation of the mandatory dental amalgam separator program. The District will also work with the Contra Costa Clean Water Program to develop guidelines for discharging pool and spa water to the sewer. Book 56 - Page 40 Board Meeting of February 15, 2007 Staff responded to questions regarding the new regulations relating to the discharge of pool water into the sewer. Mr. Kelly stated that this is a Best Management Practice that stormwater agencies are adopting, which has been imposed upon them by the Regional Water Quality Control Board. 3) Report on Proposition 218 Mailino General Manager James Kelly stated that, in the past, the Board sent Proposition 218 notices to customers when considering an increase in the Sewer Service charge. This policy has been confirmed by a recent Appellate Court decision. Proposition 218 requires this notice be received 45 days prior to the Public Hearing on sewer service rates. Controller Debbie Ratcliff reviewed the proposed Proposition 218 schedule. She stated that approximately 140,000 pieces of mail would be sent out. Proposition 218 requires that the notice be received at least 45 days prior to the public hearing, and the deadline for the mailing is April 24, 2007. On May 10, 2007, the Board will be asked to set a public hearing on the Operations and Maintenance Budget, the sewer service charge, and collection of fees on the County tax roll. The public hearing will be held on June 7,2007, and the final budget adopted on June 21,2007. 4) General Manager James Kelly reported that Member Hockett would be attending the California Association of Sanitation Agencies (CASA) Washington DC Conference on March 11-14,2007. He stated that staff recommends that the Board concur with the report. There being no comments, the Board concurred. 5) General Manager James Kelly stated that the Board directed him to develop a recommendation on what items may be placed on the Consent Calendar for approval. He suggested that the first step would be to place approval of minutes and expenditures on the Consent Calendar, then add routine items in incremental steps. Member Lucey concurred with the placement of minutes and expenditures on the Consent Calendar. He suggested that the routine contracts be identified by the General Manager and pointed out to the Board over the next few months and a decision made as to what will be placed on the Consent Calendar in the future. Member Menesini requested that specific criteria be developed for what type of items will be placed on the Consent Calendar. General Manager James Kelly confirmed that he will begin with placement of the minutes and expenditures on the Consent Calendar, will develop Book 56 - Page 41 Board Meeting of February 15, 2007 criteria, and point out to the Board the type of items suitable for the Consent Calendar over the next several agendas. 6) General Manager James Kelly announced that staff was asked to estimate the cost to the District if there was a one-year delay in completing the Alhambra Valley sewer. He stated that there are two costs the District would incur: increase in construction costs, and sewage trucking costs. Regarding construction costs, the construction industry expects costs to increase by approximately 7% over the next year. Since the funds that would have been used for construction will be earning approximately 5% during this period, the net cost increase is 2% and the additional project costs will be approximately $25,000. Regarding sewage trucking costs, the developer Busby indicated to staff that approximately four homes per year are expected to be built. Although sewage will be minimal, to avoid a nuisance, trucking is estimated to occur three times a week after a single home is occupied. Assuming the home is occupied on September 1, 2007, trucking costs will be approximately $30,000. Thus, the total cost for delaying one year is estimated to be $55,000. 7) General Manager James Kelly announced that the Lower Orinda Pumping Station Renovation, Phase 2, District Project 5944, will be advertised for bids on February 26 and March 6,2007. The project consists of a number of improvements to the Lower Orinda Pumping Station that will enhance the station's reliability and maintainability. These improvements include such items as bypass and soft start capabilities on the 250-hp variable frequency drives for the wet weather pumps, isolation gates for the new grinders, building security and fire alarm systems, fuel day tank, emergency lighting, and other miscellaneous items. The Engineer's construction cost estimate for this project is $500,000. Staff plans to return to the Board for authorization of the construction contract at the April 5, 2007, Board Meeting. 8) General Manager James Kelly announced that the Caltrans project to repair the District's 21-inch sewer crossing under Highway 680 at Lancaster Road in Walnut Creek continues on the freeway shoulder area. When the contractor performing the repair reached the sewer, it was discovered that the damage to the sewer was not accidental and in fact the casing protecting the sewer was removed to accommodate the installation of the pier supports for the sound wall. As previously noted, Caltrans is fixing the sewer with their contractor at their cost and District staff is inspecting the work. District staff is pursuing Caltrans reimbursement for all District costs related to the repair of this damaged sewer. The repair of the sewer itself was completed on Friday, Book 56 - Page 42 Board Meeting of February 15, 2007 February 9,2007. The sound wall repair and site restoration work is continuing and is expected to be completed by the end of March. 9) General Manager James Kelly announced that, circa 1992-1993, the Contra Costa County Water Conservation and Flood Control District (CCCFCD) applied for a 404 permit from the U. S. Army Corps of Engineers (COE) to dredge Lower Walnut Creek. The U. S. Fish and Wildlife Services and California Department of Fish and Game objected to the dredging activities; therefore, the COE refrained from issuing a dredging permit to CCCFCD. The reason for the objection was destruction of wetlands due to dredging activities. As a result, CCCFCD has consciously decided not to dredge the lower portion of Walnut Creek and has focused its attention upstream. During the summer of 2006, CCCFCD dredged a portion of the upper reaches of Walnut and Grayson Creeks. Utilizing the revised creek profiles from this past summer's dredging activities, CCCFCD is currently working with the COE to re-evaluate the water surface elevations in Lower Walnut and Grayson Creeks under various storm events. CCCFCD is also re-evaluating its position with respect to dredging the lower reaches of Walnut Creek this year and how to work with the COE to obtain the necessary permits. Staff will continue to work closely with CCCFCD on the revised water surface elevations and how this will impact the treatment plant facilities. Staff will send a letter to CCCFCD this month informing them of the impact of not dredging the lower portion of Grayson Creek and Walnut Creek on the District's facilities, stating our support of their efforts to dredge the creeks, and requesting the creeks be dredged this summer. Staff will monitor CCCFCD's effort to dredge the lower reaches of Walnut Creek accordingly. The Board will be kept informed of future developments. 10) General Manager James Kelly announced the sale of District surplus property to be held February 17, 2007, at First Capital Auction Surplus. Announcements 6) through 10) were included in the Board agenda packet. b. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme reported that the District has received the final bill for the 2006 consolidated election. The total cost to the District for the election was $156,668, instead of the $500,000 budgeted, which includes $12,450 for candidates' Book 56 - Page 43 Board Meeting of February 15, 2007 statements. The actual final cost was 77 cents per registered voter, rather than the original County estimate of $2.50 per registered voter. The County's explanation for the lower cost was that there were more shared costs than originally anticipated. d. BOARD MEMBERS 1) Member McGill, Chair of the Budget and Finance Committee, reported that the Committee reviewed the Expenditures and recommends approval. It was moved by Member McGill and seconded by President Nejedly to approve the Expenditure List dated February 15, 2007, including Self Insurance Fund Check Nos. 102814 to 102815; Running Expense Manual Check Nos. 162506 to 162507; Running Expense Regular Check Nos. 164368 to 164808; Sewer Construction Fund Check Nos. 29733 to 29774; Payroll Manual Check Nos. 49146 to 49149; and Payroll Regular Check Nos. 56075 to 56101. Motion passed by unanimous vote of the Board. 2) Member Hockett reported on the February 6, 2007, Capital Projects Committee Meeting. 3) Member McGill reported on his attendance at the January 2007 California Association of Sanitation Agencies (CASA) Conference. 4) Member McGill reported on the Walnut Creek State of the City Address and his February 13, 2007, Breakfast Meeting with Walnut Creek Mayor, Sue Rainey. 5) Announcements Member Lucey requested that a closed session be scheduled to discuss conducting performance evaluations on the General Manager and Secretary of the District. Member Lucey requested that a project sign at the Marina Vista off ramp be repaired or removed. Member Menesini announced the upcoming Environmental Alliance meeting on February 26,2007. 8. ENGINEERING a. APPROVE SUPPLEMENTAL AUTHORIZATION OF $4.500,000 TO THE TREATMENT PLANT PROGRAM OF THE FISCAL YEAR 2006-2007 CAPITAL IMPROVEMENT BUDGET AND APPROVE NEW PROJECTS General Manager James Kelly stated that there is a shortage in the allocation in the Treatment Plant program of the Fiscal Year (FY) 2006-2007 Capital Improvements Book 56 - Page 44 Board Meeting of February 15, 2007 Budget. Staff is requesting that the Board approve a supplemental authorization of $4,500,000 to the Treatment Plant Program of the FY 2006-2007 Capital Improvement Budget, and approval of three new projects. Director of Engineering Ann Farrell reported that the reasons for the authorization shortage include (1) shortage of $1.8 million to allocate to new projects in FY 2006- 2007, (2) three new projects in the Treatment Plant program which are not included in the Capital Improvement Budget and (3) staff is planning to award a number of projects before the end of FY 2006-2007 that will spend the majority of their budgets in FY 2007- 2008. In order to award these contracts, the funds must be available in the FY 2006- 2007 Capital Improvement Budget. Staff also requests the Board approve the following three new projects: Treatment Plant Hydraulic Evaluation, Treatment Plant Site Planning, and Electric Blower Renovation. Member Hockett stated that the Capital Projects Committee reviewed the proposed three new projects and concurred with the staff recommendation. It was moved by Member Hockett and seconded by Member McGill to approve the supplemental authorization of $4,500,000 to the Treatment Plant Program of the FY 2006-2007 Capital Improvement Budget and to approve the new projects. Motion passed by unanimous vote of the Board. b. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH DAMON S. WILLIAMS AND ASSOCIATES, IN THE AMOUNT OF $90,000. FOR THE TREATMENT PLANT SITE PLANNING EVALUATION, DISTRICT PROJECT 7249 It was moved by Member Hockett and seconded by Member Menesini to authorize the General Manager to execute a Professional Services Agreement with Damon S. Williams and Associates, in the amount of $90,000, for the Treatment Plant Site Planning Evaluation, District Project 7249. Motion passed by unanimous vote of the Board. c. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH CAROLLO ENGINEERS, IN THE AMOUNT OF $95.000, FOR THE TREATMENT PLANT HYDRAULICS EVALUATION, DISTRICT PROJECT 7270 It was moved by Member Hockett and seconded by Member Menesini to authorize the General Manager to execute a Professional Services Agreement with Carollo Engineers, in the amount of $95,000, for the Treatment Plant Hydraulics Evaluation, District Project 7270. Motion passed by unanimous vote of the Board. Book 56 - Page 45 Board Meeting of February 15, 2007 d. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH HDR. IN THE AMOUNT OF $80.000. FOR THE CAPACITY EVALUATION OF THE ELECTRIC BLOWER. DISTRICT PROJECT 7272. It was moved by Member Hockett and seconded by Member Menesini to authorize the General Manager to execute a Professional Services Agreement with HDR, in the amount of $80,000, for the Capacity Evaluation of the Electric Blower, District Project 7272. Motion passed by unanimous vote of the Board. 9. APPROVAL OF MINUTES a. MINUTES OF JANUARY 11. 2007 AND JANUARY 25. 2007 It was moved by Member Hockett and seconded by President Nejedly to approve the minutes of January 11 and January 25, 2007. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE a. RECEIVE THE 2006-2007 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 2006 AND PROJECTIONS FOR THE FULL FISCAL YEAR General Manager James Kelly stated that the Position Paper compares the actual financial results to the budget for the first six months of fiscal year 2006-2007. Also, full year projections were included with explanations for any significant variances from budget. Controller Debbie Ratcliff reviewed the financial results to date and explained the variances as reported in the Position Paper. She gave projections for the full fiscal year, stating that total revenues are anticipated to be $47,400,000, slightly ahead by $400,000 due to sewer service charge revenue. Expenses are projected at $52,400,000, compared with $54,200,000 budgeted. b. 2006-2007 CAPITAL IMPROVEMENT BUDGET MID-YEAR STATUS REPORT General Manager James Kelly stated that the Capital Improvement Program has a large expenditure goal this year. Director of Engineering Ann Farrell provided the Board with a mid-year update on the program, including current end of year projections for expenditures and revenues and the projected impact on the Sewer Construction Fund Balance. She stated that few changes have occurred since her presentation to the Board in November 2006. Planned expenditures are $40.9 million, compared to the original Book 56 - Page 46 Board Meeting of February 15, 2007 budget. Revenue projections have dropped to $34 million, primarily due to the reduction of Dougherty Valley connections. The construction fund will be drawn down by $8 million, and there is anticipated to be a 17% increase in expenditures over what was budgeted. At a recent NACWA conference, experts were advising that agencies should budget 6-8 percent per year for escalation costs on capital projects over the next ten years. c. RECEIVE DECEMBER 2006 FINANCIAL STATEMENT Board Members received the December 2006 Financial Statement. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 13. CLOSED SESSION This was taken out of order and held immediately following the public hearings earlier in the meeting. The Board recessed at 3:42 p.m. to reconvene in closed session in the Caucus Room to confer with Legal Counsel on initiation of litigation pursuant to Subdivision Section 54956.9(c) of the Government Code (one potential matter.) The Board reconvened at 3:52 p.m. in the Board Room for the remainder of the agenda. 14. REPORT OF DISCUSSIONS IN CLOSED SESSION None. Book 56 - Page 47 Board Meeting of February 15, 2007 15. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:50 p.m. Pres dent of the Board of Dir ctors, Central Contra Costa Sanita District, County of Contra Costa, State of California COUNTERSIGNED: pp~o Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California . Book 56 - Page 48