Loading...
HomeMy WebLinkAboutBOARD MINUTES 06-04-09MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 4, 2009 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of business, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, June 4, 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: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS Local One President David Rolley stated that Local One is opposed to the adoption of a Tier III. He asked that the Board consider establishing a retirement health care savings plan, similar to that offered by ICMA. 3. CONSENT CALENDAR General Manager James Kelly stated that Item d. should be deleted from the Consent Calendar. It was moved by Member Menesini and seconded by Member McGill to adopt the Consent Calendar as recommended, with the exception of Item d. Motion passed by unanimous vote of the Board. a. Approve expenditures dated June 4, 2009. Reviewed by Budget and Finance Committee. b. Receive April 2009 Financial Statements. Reviewed by Budget and Finance Committee. c. Approve minutes of May 7, 2009 Board meeting. Book 59 -Page 26 Board Minutes of June 4, 2009 d. Adopt a resolution accepting a grant of easement from Contra Costa County on the lands commonly referred to as Buchanan Fields Golf Course (APNs 125-010-022 and 125-010-023), and authorize staff to record documents with the Contra Costa County Recorder. This item was deleted from the Consent Calendar at the request of staff. 4. HEARINGS a. CONDUCT A PUBLIC HEARING ON THE ADOPTION OF A RESOLUTION DIRECTING THAT THE FISCAL YEAR 2009-2010 CAPACITY USE CHARGES, THE FISCAL YEAR 2009-2010 ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, AND DELINQUENT CHARGES BE PLACED ON THE CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION General Manager James Kelly referred to the Position Paper dated June 4, 2009 and stated that, each year, the District collects Capacity Use Charges, Assessments for Contractual Assessment Districts, and delinquent charges on the County Tax Roll. This practice is more efficient than the alternative of direct billing. State law allows the Board to authorize placing charges and assessments on the Tax Roll by resolution passed with a minimum of four affirmative votes after conducting a public hearing. The public hearing was opened and closed without comments. It was moved by Member Hockett and seconded by Member Menesini to adopt Resolution 2009-032 directing that the Fiscal Year 2009-2010 Capacity Use Charges, the Fiscal Year 2009-2010 Assessments for Contractual Assessment Districts, and Delinquent Charges be placed on the Contra Costa County Tax Roll for collection. Motion passed by unanimous vote of the Board. b. Conduct public hearings on the following matters (1) PUBLIC HEARING TO CONSIDER APPROVING AND ADOPTING THE FISCAL YEAR 2009-2010 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET, AND THE SELF- INSURANCE FUND BUDGET, AND TO CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING THE FISCAL YEAR 2009- 2010SEWER SERVICE CHARGE RATE INCREASE OF $10 FOR A TOTAL SEWER SERVICE CHARGE AT $321 PER RESIDENTIAL UNIT. General Manager James Kelly stated that the public hearing is being held to consider approving and adopting the Fiscal Year 2009-2010 Operations and Maintenance (O&M) Budget, Debt Service Fund Budget, and the Self- Insurance Fund Budget, and to consider adopting an uncodified ordinance establishing the Fiscal year Sewer Service Charge rate increase of $10 for a total Sewer Service Charge of $321 per Residential Unit Equivalent (RUE). Book 59 -Page 27 Board Minutes of June 4, 2009 Controller Debbie Ratcliff referred to the Position Paper dated June 4, 2009 and prior presentations to the Board on the 2009-10 Budget and Sewer Service Charge. She reviewed revenue assumptions and expense assumptions. Administrative overhead is calculated to be 117 percent of capitalized salary. Vacancy factors of 3 percent for salaries and 4 percent for benefits have been included. The proposed Sewer Service Charge increase is $10 per RUE. A Proposition 218 Notice was sent out and the following responses received: Support 4 Opposition 40 Senior Rate Requested 11 Questions 10 Parcels on Septic 19 Other issues 31 This amounts to 0.1 percent of total notices mailed. The public hearing was opened and closed without comments. Member Hockett suggested that District records be updated to reflect residents on septic tanks, and that they be contacted to see if they would like to connect to the sewer system. She noted that the wording on the Proposition 218 Notice needs to be improved and made more relevant to the current economic situation. She stated that she understands the rationale for a rate increase but has concerns about the uncertainty of the State budget and how that may impact the District. Member Lucey stated that he is against the proposed Sewer Service Charge increase. Staff should read all the letters from the taxpayers to see how our neighbors are being impacted by the economic downturn. Member McGill asked about the Budget and Finance Committee recommendation. Member Lucey stated that the Committee felt it should be a Board decision and did not make a recommendation. In response to another question from Member McGill regarding the allocation of O&M funds versus Sewer Construction Fund if the increase does not pass, Member Lucey stated that staff will address that issue. Member Hockett noted that if the increase is not approved and the State takes money from the District, it will be too late. She stated that the opportunity should not be missed, as it is highly likely, in her opinion, that the State will take away District money. Member Menesini acknowledged that there is no perfect solution. He stressed the need to continually educate the public on District services and operations. He suggested continuing the public hearing to June 18, 2009 to obtain more information on what the State plans to do. Book 59 -Page 28 Board Minutes of June 4, 2009 Member Lucey stated that he would prefer to act today. The District will only lose approximately $1.6 million. If the State takes away $12 million, he would like to see the elimination of $6 million from the O&M budget. He read extracts from letters responding to the Proposition 218 Notice, noting that many people are hurting for money. One out of ten has been laid off. He pointed out that these are hard times, and the District needs to look at the bigger picture. Member McGill asked procedural questions, including questions about a supplemental assessment. He stated that he does not feel comfortable voting for a rate increase today, without knowing about what the State plans to do. There is not sufficient information at this time. District Counsel Kent Alm confirmed that a rate increase could possibly be imposed in the middle of the year. Following further discussion, it was moved by Member Hockett to adopt an uncodified ordinance establishing the Fiscal Year 2009-2010 Sewer Service Charge rate increase of $10, for a total Sewer Service Charge of $321 per Residential Unit Equivalent. Motion died for lack of a second. It was moved by Member Menesini and seconded by Member Lucey to approve and adopt the Fiscal Year 2009-2010 Operations and Maintenance Budget, Debt Service Fund Budget, and Self Insurance Fund Budget. Motion passed by unanimous vote of the Board. (2) PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION PLACING CURRENT SEWER SERVICE CHARGES ON THE CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION General Manager James Kelly stated that this public hearing is being held to consider adopting a resolution placing the Sewer Service Charge on the County Tax roll for collection. The public hearing was opened and closed without comments. It was moved by Member McGill and seconded by Member Lucey to adopt Resolution 2009-033 authorizing collection of the Fiscal Year 2009-2010 Sewer Service Charges on the County Tax Roll. Motion passed by unanimous vote of the Board. Book 59 -Page 29 Board Minutes of June 4, 2009 c. CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING AND ADOPTING THE CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2009-2010 AND THE 2009 TEN-YEAR CAPITAL IMPROVEMENT PLAN; APPROVING THE 2009 CAPITAL IMPROVEMENT PLAN; APPROVING AND ADOPTING THE FISCAL YEAR 2009-2010 CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2009-2010 DISTRICT BUDGET; AND MAKING THE FINDING THAT THESE DOCUMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) General Manager James Kelly stated that the 2009-10 Capital Improvement Budget and the 2010 Capital Improvement Plan were reviewed in detail for the Board and interested public in an April 9, 2009 workshop. Director of Engineering Ann Farrell briefly reviewed the material covered in the workshop and set forth in current and prior Position Papers. She stated that there was a Board workshop on this material held on April 9, 2009. The total FY 2009-10 Capital Budget authorization is $68,522,000 and total reduced expenditure recommendation is $36,200,000, assuming a very competitive bid climate. The projected Sewer Construction Fund balance as of June 30, 2009 is expected to be $36.7 million, assuming the reduced expenditure scenario. She described projects serving future ratepayers totaling over $30 million that may be suitable for bond financing, and added that receipt of federal stimulus funding for certain District projects could improve the revenue stream. The public hearing was opened and closed without comments. President Nejedly stated that the District is in a good position and has adequate reserves for next year's budgeted expenditures. However, if the District's property taxes are taken away, he would support a sewer service charge increase. This may not have to be addressed until the following year, however. It was moved by Member Menesini and seconded by Member Hockett to approve and adopt the Fiscal Year 2009-2010 Capital Improvement Budget and the 2009 Ten-Year Capital Improvement Plan; to approve the 2009 Capital Improvement Plan; to approve and adopt the Fiscal Year 2009-2010 Capital Improvement Budget for inclusion in the Fiscal Year 2009-2010 District Budget; and to make the finding that the documents are exempt from CEQA. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. Book 59 -Page 30 Board Minutes of June 4, 2009 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $619,000 TO CALIFORNIA TRENCHLESS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE NORTHERN PUMPING STATION UPGRADES, DISTRICT PROJECT 5971; FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA); AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AUTHORIZE THE GENERAL MANAGER TO EXECUTE AGREEMENT AMENDMENTS WITH LEE & RO, INC. AND DODSON PSOMAS FOR $25,000 AND $35,000, RESPECTIVELY General Manager James Kelly stated that the Northern Pumping Stations Upgrades Project consists of replacing and modifying various components at Concord Industrial, Clyde, Martinez, Orinda Crossroads, and Maltby pumping stations to prevent sewage overflows, reduce maintenance, and increase operating efficiency. The project was advertised on April 13 and 20, 2009. The Engineer's Estimate is $650,000. Nine bids were received and opened on May 8, 2009 ranging from $ 619,000 to $808,000. Staff recommends award of a construction contract in the amount of $619,000 to California Trenchless, Inc., the lowest responsive bidder. It was moved by Member Menesini and seconded by Member McGill to make the finding that the project is exempt from CEQA; to award a construction contract to California Trenchless, Inc.; to authorize the General Manager to execute the contract documents as recommended; and to authorize the General Manager to execute agreement amendments with Lee & Ro, Inc. and Dodson Psomas for $25,000 and $35,000, respectively. Motion passed by unanimous vote of the Board. 7. REPORTS a. GENERAL MANAGER 1) General Manager James Kelly announced that, in September 2008, the District joined the Bay Area Recycled Water Coalition to pursue federal grant funding for this project through the United States Bureau of Reclamation's Title XVI Program. Since then, the Coalition has worked with federal legislators to draft and submit bills to both the House of Representatives and the Senate to provide grant funding for Coalition recycled water projects including the Concord Recycled Water Project. If the Coalition receives federal authorization for their proposed recycled water projects, the District could receive up to $1.8 million in federal grant funding for the project, or 25 percent of the total estimated project cost of $7.2 million. This project is currently not budgeted in the District's Capital Improvement Budget. However, if Title XVI grant funding is obtained, staff Book 59 -Page 31 Board Minutes of June 4, 2009 will request that the Board approve the additional funding necessary to construct the project. 2) General Manager James Kelly announced that, in 1992, the District was one of the founding charter members of the Northern California Pipe Users Group (PUG). PUG is a forum of public agencies, engineers, and industry professionals dedicated to improving the design, construction, and operation of sewer and water systems. Since its inception, PUG has been instrumental in promoting the development of numerous underground trenchless technologies. A major component of its charter was the education and training of end users in these technologies. District staff has attended/participated in these training programs. PUG's accomplishments include standardized specifications for various technologies such as micro-tunneling, cured in place pipe, pipe bursting, etc, as well as enhancements to materials such as double gasket concrete pipe. Through PUG's efforts, the availability/use of trenchless technologies throughout Northern California has dramatically increased with a corresponding reduction in costs. At the June 18, 2009 Board Meeting, representatives of PUG will recognize the District's support and participation. 3) General Manager James Kelly announced that, on May 22, 2009, employees from SC Fields Technical Services were on site to inspect and repair diesel tanks. At approximately 7:50 a.m., one of the employees twisted at the waist to get a tool from his tool box and his leg slipped out from under him resulting in a serious knee injury. Since the injured man was on the top of the tank, the Control Room was contacted and they called 911. Contra Costa County Fire responded within five minutes, provided medical assistance, and transported the injured man via ambulance to John Muir Hospital in Concord. Plant Operations Director Doug Craig convened a meeting around 9:30 a.m. to discuss the incident, identify causes, and review communication processes. Given what is known so far, it was an unpreventable incident. Although the injured man is not a District employee, the injury was reported to CaIOSHA. 4) General Manager James Kelly announced that, on May 27, 2009, the National Association of Clean Water Agencies (NACWA) notified the District that it will receive a Platinum 11 Peak Performance Award at the NACWA Summer Conference in Milwaukee, Wisconsin to be held from July 14 to July 17, 2009. The award is for 100 percent compliance with the District's National Pollutant Discharge Elimination System Permit for 11 consecutive years. Book 59 -Page 32 Board Minutes of June 4, 2009 5) General Manager James Kelly asked Board Members to review the California Association of Sanitation Agencies (CASA) Memo "Property Tax Alert -Action Requested" and recommended that he proceed with actions opposing the taking of property taxes, as requested in the memo. Board Members concurred. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm provided an update on the recent legal actions against the Novato Sanitary District. c. SECRETARY OF THE DISTRICT Announced removal of "ANNOUNCEMENTS" from agenda item heading that reads "ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS" to eliminate redundancy. Board Members concurred. 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 Lucey reported on the June 2, 2009 Human Resources Committee meeting and summarized the Action Summary. The Board received the report without comments. Member Hockett reported on her attendance at the June 3, 2009 Contra Costa Council Annual Installation Dinner. Member Lucey Member Lucey and President Nejedly reported on the June 1, 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. Book 59 -Page 33 Board Minutes of June 4, 2009 Member Menesini Member Menesini reported on his attendance at the June 2, 2009 meeting with Martinez City Manager Phil Vince and Martinez City Council Vice Mayor Mike Menesini. 2) Announcements Member Menesini announced the upcoming Environmental Alliance meeting on June 15, 2009. 8. ENGINEERING a. ADOPT A RESOLUTION FINDING THAT SPECIAL CIRCUMSTANCES REQUIRE MODIFICATION, SUSPENSION, AND RELIEF FROM APPLICATION OF DISTRICT CODE SECTION 6.08.040 AND SUBSECTION 6.12.030D PERTAINING TO THE TIME FOR PAYMENT OF CONNECTION FEES; AND APPROVING AONE-YEAR PILOT PROGRAM ALLOWING DEFERRED PAYMENT OF CONNECTION FEES FOR NEW HOMES AND NEW BUILDINGS CONSTRUCTED ON VACANT PARCELS General Manager James Kelly stated that the Board directed staff to develop cone-year pilot program to allow deferred payment of connection fees for service to new homes constructed on vacant parcels. The position paper for this item presents the proposed program. Staff met with representatives of the homebuilding industry who have committed to work with the District to ensure a successful program. The proposed program was also discussed at the Board's Budget and Finance Committee meeting. Member Lucey stated that he supports the pilot program, but does not support the hiring of additional staff to administer it. It was moved by Member Lucey and seconded by Member McGill to adopt Resolution 2009-034 finding that special circumstances require modification, suspension, and relief from application of District Code Section 6.08.040 and Subsection 6.12.030D pertaining to the time for payment of connection fees; and approving cone-year pilot program allowing deferred payment of connection fees for new homes and new buildings constructed on vacant parcels. Motion passed by unanimous vote of the Board. 9. HUMAN RESOURCES a. ADOPT A MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE MANAGEMENT SUPPORT/CONFIDENTIAL GROUP EFFECTIVE JUNE 4, 2009 THROUGH APRIL 17, 2012 General Manager James Kelly stated that the Human Resources Committee met on Tuesday, June 2, and recommends Board consideration of the Management Support/ Book 59 -Page 34 Board Minutes of June 4, 2009 Confidential Group Memorandum of Understanding. The group should be commended for agreeing to a Tier III for retiree health benefits and recognizing the priorities of the Board to protect the District's future financial health. It was moved by Member Menesini and seconded by Member McGill to adopt a Memorandum of Understanding between the District and the Management Support/Confidential Group effective June 4, 2009 through April 17, 2012. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Menesini NOES: Members: Nejedly ABSENT: Members: None 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION a. RECEIVE REPORT ON EMERGENCY DECLARED ON MAY 21, 2009 AND AUTHORIZE THE GENERAL MANAGER UNDER PUBLIC CONTRACT CODE 22050(8) TO CONTINUE WITH EMERGENCY REPAIRS ON THE RECYCLED WATER PIPELINE AT GRAYSON CREEK IN MARTINEZ BY C. OVERAA, IF WORK HAS NOT BEEN COMPLETED Capital Projects Division Manager Tad Pilecki presented information on the emergency repairs on the recycled water pipeline at Grayson Creek. He stated that the primary cause was epoxy failure of the connectors of the pipeline to the bridge from which it was suspended, resulting from high temperatures. Secondary causes include vibration of vehicles, differential motion response, micro-cracking of the concrete, and inadequate installation. Future use of adhesive anchors in overhead applications is not recommended due to susceptibility to elevated temperatures. He stated that the County is reviewing the proposed solution to resuspend the pipeline from the County bridge and a response is expected by the end of the week. Staff will obtain quotes from several contractors and permanent repair is expected to be completed in four to six weeks, pending County approval. It was moved by President Nejedly and seconded by Member Menesini to continue authorization for emergency repairs. Motion passed by unanimous vote of the Board. 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly requested an update on Bulldog Power. Member Menesini requested an update on the pumping stations. Member Lucey asked for a report on cost savings resulting from low bids. Book 59 -Page 35 Board Minutes of June 4, 2009 12. CLOSED SESSION The Board recessed at 3:16 p.m. to reconvene in closed session regarding: a. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: Labor Counsel Allison Woodall, Esq.; Director of Administration Randall Musgraves, Humari Resources Manager Cathryn Freitas, Secretary of the District Elaine Boehme Employee Organizations: Employees' Association, Public Employees' Union, Local One; CCCSD Management Group. The Board recessed at 3:58 p.m. to reconvene in the Board Room for the remainder of the agenda , 13. REPORT OUT OF CLOSED SESSION No reports. 14 ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:59 p.m. G, Ja s A. Nejedly ~.. resident of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California _COUr~TERSIGNED: ,1 _ Elane~R. f3,cehme ~~cretary ofi the Central Contra Costa SaniYi?ry'District, County of Contra Costa, "~ State ofiCalifornia Book 59 -Page 36