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HomeMy WebLinkAboutBOARD MINUTES 04-12-07 MINUTES OF THE SPECIAL BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 12, 2007 The District Board of the Central Contra Costa Sanitary District convened in a special meeting in the Board Room at the District Offices at 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on April 12, 2007. 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: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS None. 3. REPORTS/ANNOUNCEMENTS None. 4. CAPITAL PROJECTS BOARD WORKSHOP a. OVERVIEW OF THE FISCAL YEAR 2007-2008 DRAFT CAPITAL IMPROVEMENT BUDGET AND DRAFT 2007 TEN-YEAR CAPITAL IMPROVEMENT PLAN Acting General Manager Doug Craig introduced Ms. Ann E. Farrell, Director of Engineering, stating that she will present an overview of the Draft Capital Improvement Budget (CIB) and Ten-Year Capital Improvement Plan (CIP). He stated that Information Technology Administrator Mark Greenawalt will also give a brief overview of the current and proposed IT budget and projects for the upcoming fiscal year. Ms. Farrell gave an overview of her presentation, stating that she will review historical program activity and accomplishments, review progress on strategic technical issues and review the four CIB programs, Collection System, Treatment Plant, Recycled Water, and General Improvements for 2007-08. Book 56 - Page 84 Board Minutes of April 12, 2007 Ms. Farrell reviewed the regulatory drives for the Capital Improvement Budget and recent accomplishments. She stated that renovations have been completed on major pumping stations. The Collection System Renovation progress is continuing. Staff will continue to address wet weather collection system capacity, the largest project being the A-Line Phase 2A project. Wet weather treatment capacity will be increased to 135 mgd from 90mgd to reduce storage and untreated overflows. Continuing to address treatment reliability and effluent requirements. A big part of the capital program this year is addressing mercury limits. She showed actual versus budgeted expenses, stating that in the last two years deferred projects have been moved up and spending increased. There will be an approximate balance of $51 million in the sewer construction fund at the end of this 2006-07 fiscal year. With regard to revenues, ad valorem tax was lost in fiscal years 2004-05 and 2005-06, but capacity fees increased due to the Dougherty Valley. The average actual revenue over the past several years has been about $25 million, and budgeted revenue about $24 million. The average actual expenditures have been $26 million as compared to revenues of $25 million, and the Sewer Construction Fund has been drawn down by $7 million over the last eight years. She stated that total budgeted expenditures for the coming 2007-08 fiscal year are $43,061,000. Budgeted revenue is $40,448,000, $7 million of which is coming from Concord. The Sewer Construction Fund balance is budgeted to be spent down by approximately $3,000,000. In the last six months, the urgency of constructing a project to remove mercury and the magnitude of the project have increased. To address the mercury removal issue, we may need bond funding as early as next year. She explained the trend of capacity fees generated by new connections Residential Unit Equivalents (RUEs) and discussed the difficulty in projecting RUEs for the next ten years. Because capital revenue is dependent on capacity fees, a down turn in the number of new connections can significantly impact the revenue available for capital projects. COLLECTION SYSTEM PROGRAM Ms. Farrell reviewed the Collection System Program. The total Collection System Program expenditures are budgeted at $26,540,000. The main project is the A-Line Phase 2-A project which is a joint project with the City of Concord. The total project cost is approximately $18 million over a 2-year period, and Concord will pay $11-$12 million of the project cost. Book 56 - Page 85 Board Minutes of April 12, 2007 Ms. Farrell described the A-Line/Concord joint project and project schedule, and the elimination of the Concord pumping station. The District is also planning to bring recycled water into the area as part of the project. Construction is expected to be completed by September 2008. The Alhambra Valley Trunk sewer is the second largest project, along with North Orinda Renovation Phase 2.1 and Phase 3. The sewer overflow prevention strategy includes a renovation program for poor condition sewers which are identified by the TV-ing of sewers. So far, 680 miles of the 1,500 miles of District sewers have been TV’d for condition assessment. Also, 78 miles of renovation have been completed, which is estimated, based on TV results, to be 30 percent of the total renovations needed. TREATMENT PLANT PROGRAM With regard to the Treatment Plant Program, key projects include standby facility improvements, solids handling improvements, ultraviolet disinfection expansion, and service air improvements. Ms. Farrell stated that addressing mercury poses the greatest challenge. The District has an interim limit of 87 ppt, and the final limit in our new National Pollutant Discharge Elimination System (NPDES) permit is 18 ppt. The District cannot meet the final limit of 18 ppt under current operation. Member Lucey commented on a recent article regarding mercury from the refineries, who do not appear to be complying with regulatory requirements. Ms. Farrell stated that the District needs to attack influent and the scrubber water recycle stream to meet the final mercury limits. It is hoped that a Total Maximum Daily Load (TMDL) will be implemented, which would relax the mercury limit at 41 ppt. However, until that happens, staff is proceeding assuming the final limit of 18 ppt must be met by 2010. She explained options to address mercury control, including shutting down the incinerator and hauling sludge; removing mercury from the scrubber water; or changing air emissions control to capture mercury in a solid adsorbent. Mr. Craig clarified that the District is greatly under the mercury limit currently imposed by the Bay Area Air Quality Control Board for air emissions. Ms. Farrell explained the cost of each alternative. The cheapest long-term option is to treat dry scrubber air. That project would not be in place until 2010, and in the interim the District would have to haul sludge if the interim limit were remanded. In response to a question from Member Lucey, Ms. Farrell responded that the capital cost to haul dewatered sludge would be $3 million, dry scrubber air treatment would be $20 million, and a pilot study would cost in the region of $500,000 to $1 million. She confirmed that staff feels it should proceed with the design of the project. Book 56 - Page 86 Board Minutes of April 12, 2007 Mr. Craig reiterated that the TMDL is very important to the District. Also, it is not known how quickly the amalgam separator program will reduce the mercury in the influent. It is possible that the continuation of the TMDL and a successful amalgam separator program could negate the need for a project to remove mercury from the incinerator scrubber water or emissions. Ms. Farrell concluded, at this time, staff is pursing all available options and will keep the Board informed. RECYCLED WATER PROGRAM Ms. Farrell stated that the program includes the Pleasant Hill Phase 1B Recycled Water project, which is being extended as part of the A-Line Project, at a total project cost of $2,920,000, with $1,000,000 allocated out of the 2007-08 budget. Remaining recycled water projects total $74,000 for the 2007-08 fiscal year. GENERAL IMPROVEMENTS Ms. Farrell stated that the General Improvements projects include $1,177,000 for the equipment and vehicle budget; $668,000 for Information Technology Development; $472,000 for CSOD facility improvements; $245,000 for Headquarters improvements; and $593,000 for other miscellaneous projects. She stated that a new focus for the District should be on being “green,” where it makes sense financially. This could include using recycled materials whenever possible, use of solar panels and investigation of alternative fuels. b. REVIEW DRAFT INFORMATION TECHNOLOGY DEVELOPMENT BUDGET FOR 2007-2008 Information Technology Administrator Mark Greenawalt provided an overview of the Information Technology (IT) Development Budget, which is broken into four sections – Current 2006-07; Proposed 2007-08 Budget; Future Projects; and Accomplishments. He stated that the 2006-07 budget was $415,000, and those funds have provided for the continuation of the personal computer and server replacement program; replacement of engineering support hardware and software; upgrade of the Accela software, completion of the sewer billing software installation; installation of a wireless network to the annex, and upgrade of the mainsaver software. Approximately $546,000 of projects remains for the entire year, which is covered by unused funds from the prior year. These projects include a Household Hazardous Waste visitor management system; installation of an uninterrupted power supply in the network center; implementation of the storage area network; continued upgrade of the mainsaver software; and internet website development. The proposed 2007-08 budget is $668,000, and this will pay for the continued replacement of personal computers and laptops; engineering support hardware and software upgrades; source control inspection software; internet development; network Book 56 - Page 87 Board Minutes of Apri/12, 2007 hardware upgrades; Board Room and Multi-Purpose Room upgrades; remote access serve; and laboratory electronic reporting. Mr. Greenawalt responded to questions from Board Members regarding laptop usage and monitoring. c. SUMMARY Ms. Farrell showed a chart of the CIB summary, estimated program expenditures, estimated carry-over from the prior fiscal year, and total proposed authorization requested, which will be approximately $76 million for the capital program. This figure is higher than what will actually be spend in 2007-08 as projects will carry over into future years. Approximately $43 million worth of projects will be constructed in 2007-08. Ms. Farrell explained that the Board has a continuing role in the Capital Program. Board approval is required for construction projects over $15,000, change orders over $50,000, consultant contracts over $50,000, and revisions to consultant contracts over 15 percent. Ms. Farrell responded to questions from Member Lucey regarding the advisability of pursuing three options to address mercury limits when future regulatory requirements are uncertain. 5. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 3:07 p.m. = G, ~7-"~ Ja A. Nejedly President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 6R &eJL ~ Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 56 - Page 88