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HomeMy WebLinkAboutBOARD MINUTES 09-18-03 39 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 18, 2003 At 12:30 p.m., prior to the regular Board Meeting, a light luncheon was held honoring the 2003 Pollution Prevention Award recipients. The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on September 18, 2003. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Lucey, Hockett, Nejedly ABSENT: Members: None PLEDGE OF ALLEGIANCE TO THE FLAG a. Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . INTRODUCE JOSE PLASCENIA, NEWLY HIRED MAINTENANCE CREW MEMBER I Mr. Jose Plascencia, Maintenance Crew Member I, was introduced and welcomed to the District by President Nejedly and the Board of Directors. 2. PUBLIC COMMENTS Mr. Frank J. Favalora, Plant Operator III, addressed the Board on behalf of Public Employees Union, Local One, concerning the Plant Operator III provisional appointments. Mr. Favalora stated that this is an important issue and a number of Plant Operators are present today. Because of scheduling, others were not able to attend, but they are very interested in the issue. Mr. Favalora stated that all of the Board Members should have received a letter from Public Employees Union, Local One concerning the decision to move those who were provisionally appointed to the Plant Operator III level back to the Plant Operator II level. In response to questions from Member Lucey, Mr. Favalora stated that Local One representatives did meet with the District Board Personnel Committee on September 11, 2003. Mr. Favalora stated that there is a lot of information that must be brought out. Mr. Favalora stated that he would make himself available to give the Board all the information he has, and to work with District staff to have a good outcome. Mr. Favalora stated that this is a serious situation. Most of the Plant Operators felt they had to be put into the provisional appointment. They were shown a video of Union Sanitary District and were told those who did not make Plant Operator III lost their jobs or retired. The District people in the provisional appointment program did everything but pass the Plant Operator III State certification test. The District has worked with people to help them pass. One individual has scores that keep getting better each time. Mr. Favalora stated that hopefully people can keep striving for the Grade III certification exam without being put back to Plant Operator II level. Mr. Favalora stated that Local One wants to work together on this issue and make it good for everyone. Mr. Favalora stated that when he approached staff about this, he was told that those provisionally appointed to Plant Operator III would be put back to the Plant Operator II level, which is 10 percent less pay, but they would keep doing the same job. Mr. 09 18 03 40 Favalora stated that there is a big area of difference for furnace operations, boilers, and co-generation between the Plant Operator II and Plant Operator III levels. Three years ago the job description for Plant Operator II was changed. Local One felt the meet and confer process was not followed; but the Public Employees Relations Board (PERB) ruled that it was, so the decision held. Furnace and boiler work is a Plant Operator III job. Mr. Favalora displayed the logbook, indicating that Plant Operator II's never operate the furnace by themselves. Mr. Favalora distributed a copy of a memo dated December 3, 1997 concerning the Furnace and Boiler Mentor Training Program, that says you must learn furnace and boiler before you become a Plant Operator III. That is the one thing that separates the Plant Operator III position from everyone else. Mr. F avalora stated that he is here today to try to let the Board know people will be made available if the Board wants more information to help them make a decision on this. Mr. Favalora stated that the Senior Plant Operators do shutdowns, but if there is a Plant Operator II on shift, everyone will do the shutdown. If something serious happens, it needs to be attended to immediately by the right people. President Nejedly thanked Mr. Favalora for his comments. Mr. David Rolley, President of Public Employees Union, Local One, addressed the Board. Mr. Rolley stated that we have to ask ourselves why did the provisional program begin in the first place. It was because there are no Plant Operator Ill's out there on the street. So the District decided to grow its own Plant Operator Ill's. This program was started and our Plant Operator II's took part in the program. Mr. Rolley stated that only 40 percent of the people who take the Plant Operator III test pass it. None of us created this problem. Mr. Rolley stated that this problem is greater than anyone of us, but we can solve it together. Mr. Rolley stated that the provisional Plant Operator Ill's had to go through extensive in-house training before they could become provisional Plant Operator Ill's, and to put them back to the Plant Operator II level is not fair. They are more than Plant Operator II's; they just haven't passed the exam. Mr. Rolley stated that Local One wants to be part of the solution, just as they were part of the solution coming up with the Senior Plant Operator position. Mr. Rolley stated that he also wants to point out there is a concern for safety. If there is a Plant Operator II job description that says they do the same work as Plant Operator Ill's, some place down the road a Plant Operator II without the extensive training may have to do the work of a Plant Operator III. There could be a problem. Mr. Rolley thanked the Board and stated that Local One wants to be part of the solution. 3. AWARDS AND COMMENDATIONS ADOPT A RESOLUTION ENCOURAGING AND PROMOTING POLLUTION PREVENTION a. Mr. Charles W. Batts, General Manager, stated that the District Board, along with other public agencies, has traditionally adopted a resolution recognizing National Pollution Prevention Week (September 15-21, 2003). In addition, the District has promoted pollution prevention as a program to improve the quality of our environment. A resolution has been prepared for the Board's consideration. It was moved by Member Menesini and seconded by Member Hockett, that Resolution No. 2003-063 be adopted, encouraging and promoting pollution prevention. Motion unanimously approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Lucey, Nejedly NOES: Members: None ABSENT: Members: None 09 18 ¡r~i \ß 41 ;" b. PRESENT 2003 POLLUTION PREVENTION AWARDS TO SAN RAMON MARRIOTT HOTEL AT BISHOP RANCH, JOSE'S AUTO SERVICE #2. BMW CONCORD, WALNUT CREEK BAKING COMPANY, AND DIABLO TRANSMISSIONS Mr. Batts, General Manager, stated that this marks the twelfth year the District has presented Pollution Prevention Awards recognizing businesses and organizations that are doing their part to protect the local water environment by minimizing or eliminating harmful discharges into the sewer or stormwater systems. Mr. Batts introduced Community Affairs Manager Harriette Heibel and Source Control Program Superintendent Tim Potter. Ms. Heibel, Community Affairs Manager, stated that for the past 12 years the District has been presenting Pollution Prevention Awards to businesses and organizations in our community that have gone above and beyond to reduce the amount of hazardous substances being discharged into sanitary sewers and storm drains. Throughout the year, District Source Control Inspectors are out inspecting businesses to be sure they are in compliance. It is a pleasure to recognize businesses when they are going above and beyond what is required. Today five businesses are being recognized, although only three could be here. The other two awards will be presented to the businesses in person. Diablo Transmissions is being recognized for their employees training program, spill response procedures, hazardous waste management, and good housekeeping methods. Diablo Transmissions uses an aqueous solution parts washer and other best management practices. Diablo Transmissions recycles waste oil, and cleaning solutions are filtered in place and reused. The 2003 Pollution Prevention Award will be presented to Diablo Transmissions at their business. Mr. Potter, Source Control Program Superintendent, stated that District Source Control Inspectors visit hundreds of businesses conducting thousands of inspections in a given year. The businesses being recognized today passed all the tests of being in compliance, and they have gone beyond by taking exceptional measures to ensure pollution is not generated in the first place. Mr. Potter recognized Senior Source Control Inspector Steve Linsley, Source Control Inspector II's Kiley Kinnon and Beverly Lescure, and Source Control Inspector I's Colleen Henry, Ernesto Rodriquez, Jeff Skinner, and Taha Nassar. The San Ramon Marriott Hotel at Bishop Ranch was one of the first businesses to receive Green Business certification. The San Ramon Marriott Hotel at Bishop Ranch is being recognized for their employees pollution prevention training program, good recycling practices, and aggressive water conservation techniques. The 2003 Pollution Prevention Award will be presented to the San Ramon Marriott Hotel at Bishop Ranch at their business. BMW Concord is operating from a new facility. BMW Concord did a great job in designing their new facility for compliance and pollution prevention techniques. They have no floor drains in the tiled service bay. They have gone to aqueous cleaning solutions, an interceptor to treat all process wastewaters, sound recycling practices, an aggressive employee training program, and a commitment to compliance that was notable. The 2003 Pollution Prevention Award was presented to Messrs. Mark Day and Scott Simpson of BMW Concord. Jose's Auto Service #2 in Concord is being recognized for their effective employees training program, emphasis on pollution prevention techniques, use aqueous cleaning solutions, aggressive containment of all wastes, and recycling. The 2003 Pollution Prevention Award was presented to Mr. Jose Gurerra, owner and manager of Jose's Auto Service #2. Walnut Creek Baking Company is being recognized for their aggressive employee training program and for compliance above and beyond what is required. Walnut Creek Baking Company employs sound maintenance practices, and is proactive in that area. 09 18 03 42 They have been receptive to feedback and recommendations for improvement. They recycle more than 60 percent of the wastes generated on site. All of their wastes are stored under cover inside the building so there is no storm water exposure at all. The 2003 Pollution Prevent Award was presented to Ms. Denise Vickers, owner of Walnut Creek Baking Company. President Nejedly thanked those present for taking time to attend the meeting today. President Nejedly and the Board of Directors commended all these businesses for going above and beyond what is required to protect our environment. 4. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through f., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Authorization was given for Proposed Annexations (PA) 03-01,03-02,03-07,03- 08,03-09,03-10,03-11,03-12,03-13,03-14,03-15, 03-16, 03-17, and 03-18 to be included in future formal annexations to the District. Motion unanimously approved on the following vote: AYES: Members: Lucey, Hockett, Menesini, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None b. Public sewer improvements and an Offer of Dedication were accepted at no cost to the District from Elizabeth J. Ames, Job 5548, Parcel 1, Lafayette area; recording of the easement acceptance with the Contra Costa County Recorder was authorized; and Resolution No. 2003-064 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: c. Lucey, Hockett, Menesini, Boneysteele, Nejedly None None Public sewer improvements and an Offer of Dedication were accepted at no cost to the District from James B. Shierry, TRE, Job 5548, Parcels 2 and 3, Lafayette area; recording of the easement acceptance with the Contra Costa County Recorder was authorized; and Resolution No. 2003-065 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. 09 Lucey, Hockett, Menesini, Boneysteele, Nejedly None None Public sewer improvements and an Offer of Dedication were accepted at no cost to the District from Mecchi Revocable Trust, Job 5548, Parcel 5, Lafayette area; recording of the easement acceptance with the Contra Costa County Recorder was authorized; and Resolution No. 2003-066 was adopted to that effect. 18 ¡f\¡, G',;þ ViÞ 43 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Lucey, Hockett, Menesini, Boneysteele, Nejedly None None e. Public sewer improvements and an Offer of Dedication were accepted at no cost to the District from Michael S. and Britt G. Ascher, Job 5548, Parcel 6, Lafayette area; recording of the easement acceptance with the Contra Costa County Recorder was authorized; and Resolution No. 2003-067 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Lucey, Hockett, Menesini, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None f. Public Sewer improvements and an Offer of Dedication for the easement shown on the map of Subdivision No. 8500, Job 5582, Parcel 1, Walnut Creek area, were accepted at no cost to the District from Lenox Homes; recording of the easement acceptance with the Contra Costa County Recorder was authorized; and Resolution No. 2003-068 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: Lucey, Hockett, Menesini, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 9., Correspondence, was taken out of order to accommodate interested persons in the audience. 9. CORRESPONDENCE a. PRESENTATION BY CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY BOARD MEMBERS ERLING HORN AND SUE RAINEY REGARDING REQUEST TO JOINTLY FUND ONE JOINT HOUSEHOLD HAZARDOUS WASTE/E-WASTE EVENT DURING FISCAL YEAR 2003-2004 Mr. Batts, General Manager, stated that Board Members from the Central Contra Costa Solid Waste Authority (CCCSWA) and the District met previously to discuss holding an additional mobile collection event in the CCCSW A service area during the 2003-2004 fiscal year. The CCCSWA Board has proposed to pay for 65 percent of the mobile collection event costs for an event to be located in Walnut Creek near Rossmoor, at the Grace Presbyterian Church. Mr. Batts introduced CCCSWA Board Members, Sue Rainey, Walnut Creek City Council Member, and Erling Horn, Lafayette City Council Member. Ms. Sue Rainey, Walnut Creek City Council Member and CCCSWA Board Member, stated that it is a pleasure to be back at the District again. When the District opened the permanent Household Hazardous Waste Collection Facility, one of the things that was discussed was mobile collection events. Now the Board has given notice that you are moving away from mobile collection events because of financial concerns. CCCSWA o~ 18 0,'" G"~ ,¡ ¡~ ð 44 feels that mobile collection events are one of the most important means of getting household hazardous waste out of the waste stream. Ms. Rainey stated that she and Mr. Horn met with the District Household Hazardous Waste Committee Members Lucey and Hockett, and they asked CCCSW A to come back to the full Board with a proposal. Ms. Rainey stated that the CCCSW A Board proposes to pay for 65 percent of the household hazardous waste collection event costs for an event located in Walnut Creek near Rossmoor in the 2003-2004 fiscal year. The District would pay 35 percent. The District and CCCSW A would share billing, continue to hand out flyers, fact sheets, and information about the permanent Household Hazardous Waste Collection Facility. Ms. Rainey stated that perhaps CCCSW A and District committees and staff can get together to work out the details. Mr. Erling Horn, Lafayette City Council Member and CCCSWA Board Member, stated that the Lafayette mobile collection event was extremely successful this year. There were 900 appointments and approximately 30 tons was collected. Mr. Horn stated that it is nice to be able to work with other agencies in the spirit of great public service. Discussion followed with regard to acknowledging the District's part in mobile collection events, the need to provide service to the entire District service area who pay rates that help pay for this, and the increasing cost of household hazardous waste collection and disposal. Following discussion, it was moved by President Nejedly and seconded by Member Hockett, that the District and CCCSW A jointly fund one additional household hazardous waste/e-waste mobile collection event in the Walnut Creek area near Rossmoor during fiscal year 2003-2004 with CCCSW A paying 65 percent and the District paying 35 percent of the household hazardous waste event costs. The motion was approved with Member Lucey voting no. President Nejedly thanked Ms. Rainey and Mr. Horn for taking the time to come to the meeting today to personally present the CCCSWA proposal. At this time, President Nejedly reverted to the order of the agenda. 6. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE SOURCE PURCHASE OF UP TO SIX CORNELL PUMPS. MOTORS. AND SPARE PARTS FOR THE MORAGA AND ORINDA CROSSROADS PUMPING STATIONS FOR AN AMOUNT NOT TO EXCEED 325000 Mr. Batts, General Manager, stated that on September 4, 2003, the Board was advised that the vibration test of the new Cornell pumps results varied, with two of the eight test points exceeding the specification. The highest number measured was 0.38 inches per second peak velocity. On Friday, September 5, the Cornell representative was on site, checked the pump with the Pumping Station Operator, and found rag material between the wear ring and the impeller. The pump was cleaned out and tested, and met the specification of less than 0.3 inches per second of peak velocity. Mr. Batts stated that there is a closed session related to this position paper later in the agenda. Mr. Batts requested that consideration of the position paper be deferred until after the closed session. The Board concurred. 7. REPORTS a. GENERAL MANAGER 1) Mr. Batts, General Manager, stated that there is nothing new to report with regard to the retirement system at this time. 09 l~;: r~ 'J ~A,', 0 O",¡, G,~ ¡ t' ~!) 45 2) Mr. Batts, General Manager, stated that the Board was provided with a copy of the draft Facilities Plan for Wastewater Utility Service for the Alhambra Valley. This long-range plan was prepared by District staff in response to increasing interest by existing homeowners and developers to extend the public sewer system into the Alhambra Valley. Mr. Batts stated that Mr. Clint Shima, Assistant Engineer, will report on the engineering aspects of the Facilities Plan, and Mr. Curt Swanson, Environmental Services Division Manager, will discuss the planning and financial issues. Mr. Clint Shima, Assistant Engineer, stated that the Alhambra Valley is the beautiful area south of the City of Martinez along Wanda Way and Alhambra Valley Road. The homes in the Valley are now on septic tanks. There are about 173 homes and 188 parcels. There has been discussion for years about connecting to sewer facilities. The Alhambra Creek, a sensitive environmental resource, flows through the Valley. Mr. Shima stated that there are two driving forces for a sewering plan: 1) Some area residents are dealing with failing septic systems; and 2) a developer is interested in developing 22 homes at the intersection of Alhambra Valley and Reliez Valley Roads. Mr. Shima stated that two sewering alternatives are being considered. The gravity alternative is more reliable, less maintenance, and complies with District policy for permanent facilities. Using a map, Mr. Shima described the Phase A, Phase B, and Phase C gravity option. The planning level cost estimate is $1,500,000 for Phase A trunk sewers, $830,000 for Phase B trunk sewers, and $670,000 for Phase C trunk sewers for a total planning level cost estimate of $3,000,000 for trunk sewers. The temporary pumping station alternative has increased risk of failure, uses mechanical equipment and chemicals, and still will require a permanent gravity solution. There are technical concerns that were considered in the draft Facilities Plan that need more detailed analysis, including a sewer creek crossing of Alhambra Creek, and the length of the sewers depends on the number of interested parties. Legal issues include rights-of-way in the Strentzel family graveyard where John Muir's grave is located; annexation is required; and environmental impacts must be assessed in accordance with the California Environmental Quality Act (CEQA). Mr. Shima stated that the draft Facilities Plan contains the following conclusions: . Sewer service could benefit Alhambra Valley and Alhambra Creek since failing septic tanks can leak wastewater to the Creek; and . Gravity sewer service is feasible for Alhambra Valley. Discussion followed with regard to the number of people that could be served and the land uses which were taken from a source document. Mr. Curtis W. Swanson, Environmental Services Division Manager, stated that there have been several public meetings over the last several years that he has attended where some residents have supported a sewer extension to the valley and some have expressed concern. In addition to financial and technical issues, a project to serve the Alhambra Valley must address environmental and political issues including growth and land use concerns, the Alhambra Creek watershed, condition of existing septic tanks, and more stringent on-site waste system requirements. The cost of new engineered septic systems is in the range of $35,000 to $40,000 per home. The cost to extend the sewer just for the proposed development is high, in the range of $90,000 per home. For that reason, the developer may seek a temporary pumping station. The cost of a joint project between the developer and interested existing homeowners is significantly less. Mr. Swanson stated that his experience indicates that about half of the people on existing septic tanks might be interested. If half of them 09 18 03 46 09 join, it would bring the cost down to about $20,000 per home, for the trunk cost only, or less depending on the number of people joining. The costs of mains, laterals, facility capacity fees, and septic tank abandonment would be in addition to the $20,000. Mr. Swanson stated that this sewer could be a candidate for a Local Improvement District (LID). A LID can be initiated in one of three ways: initiation by petition, Health Department letter, or survey. An outside engineer is hired to prepare the Engineer's Report describing the project and costs. A vote would be required to comply with Proposition 218. If approved, bond financing would be secured. Mr. Swanson stated that staff is seeking advice from the Board but also will be working with the Board Outreach Committee on the details of outreach efforts. The District would not take a lead but would help facilitate the process by: . Surveying community leaders and residents; . Encouraging the developer to work with local residents interested in extending a sewer; . Holding information workshops about sewer construction and costs; and . Meeting with other interested groups about a sewer extension. Mr. Swanson stated that staff is looking for consensus for moving ahead, not for approval of an alternative at this time. The recommended approach is to work with the community to gain acceptance of a sewer extension. It would be beneficial to the community to eliminate septic tank systems. This is an opportunity to have developer pay for a portion of the sewer. It is important to make the public aware of this opportunity through outreach efforts to determine level of interest for sewer extension. If there is sufficient interest, it may make sense to investigate formation of a Local Improvement District. Mr. Scott Busby, Vice President of Security Owners Corporation, addressed the Board, stating that the Alhambra Valley is a very political area. It has an environmental problem. There was a push in the past for a sewer and the community was 50/50 then. Mr. Busby stated that now, with his and the adjacent development, there is an opportunity to look at this again. The new on-site waste system requirements are very complex and expensive. Many people want sewers; but others do not because they think it will bring growth. It is very important that this be handled in the right way and all of the facts be made known. Mr. Busby stated that there are only 100 to 115 building sites in total left in that part of the Alhambra Valley per the General Plan and zoning. Sanitation is definitely needed. Discussion followed with regard to potential impacts of the newly adopted Contra Costa County ordinance no longer requiring a lot split for mother- in-law units, homeowners who support the sewer extension, and the problem of failing septic tanks draining into Alhambra Creek. Member Lucey stated that he does not support the District going into the community now to gain support or investigating the LID process. Elimination of failing septic tanks would be beneficial; but other than that, the developer should take the lead, not the District. President Nejedly stated that in his opinion, the District is here to provide sewer service, not to make land use planning decisions. If the best option is to provide service with a temporary pumping station now, to be replaced 1.8 47 by a gravity pipe in the future when others connect, that is what should be done. Member Menesini stated that he thinks it would be wise for the District to be proactive. The District knows things are going to happen in the Alhambra Valley. It is much better to at least look at the total picture rather than just a small part. Member Menesini stated that the District should be aware and do forward planning. Member Boneysteele stated that the District's mission is to serve people within the District, and this area is outside the current District service area. Member Boneysteele stated that he does not think the District should promote a sewer extension for the Alhambra Valley. Ms. Ann E. Farrell, Director of Engineering, stated that she urged staff to bring this forward at this time because Mr. Scott Busby will be coming to the District in the future and the Board will have no choice at that time but the temporary pumping station alternative. If we look at this now, that money could go toward a permanent solution rather than a temporary pumping station. Mr. Batts stated that this was brought to the Board now, so the Board would be aware of the situation. An Environmental Impact Report will be done. There will be development in Alhambra Valley. This is a different approach. Community advocates should be identified. The developer would be one; but if the sewer is to be extended, 50 percent of the residents must vote in favor. Staff would recommend that residents be advised of the advantages of doing this now because of the financial issues and the needs existing in the area. Member Hockett complimented staff on the Facilities Plan for Alhambra Valley Wastewater Utility Service. Member Hockett stated that the District's role is to provide sewer service. President Nejedly stated that the District is here to provide sewer service. There is a development, and it is the District's obligation to provide service. However, in this instance it is coming to light that there are many existing septic tanks in the area that need to be replaced. President Nejedly stated that he thinks the District should let the community know about the opportunity afforded by the development. Member Menesini agreed, and complimented staff on putting together an excellent piece of work. Member Lucey agreed that the District should serve the 22 homes proposed in the development, but he does not believe the District should use the development as an excuse to sewer Alhambra Valley. Mr. Batts thanked the Board for their input, and indicated that it is a good starting point for staff to come back with additional facts and figures. Mr. Busby stated that the area is in the District's Sphere of Influence. Alhambra Valley is definitely in need of sewers. Mr. Busby stated that his company is not opposed to the temporary pumping station alternative, and it is listed in their EIR that is being processed. Mr. Busby stated his company would not install a main line extension for only 22 homes; but if others participate, Security Owners Corporation would cooperate on that. President Nejedly thanked staff and Mr. Busby. 3) Mr. Batts, General Manager, stated that the District's Workers' Compensation costs have doubled during the last three years. Member 09 18 03 48 09 Lucey, a member of the Board Budget and Finance Committee, requested an update on the District's Workers' Compensation program and a review of the costs. Mr. Batts introduced Mr. Randall M. Musgraves, Director of Administration and President of the California Sanitation Risk Management Authority (CSRMA), to provide an overview of Workers' Compensation and the District's coverage. Mr. Musgraves stated that nationwide the Workers' Compensation system covers 127 million workers. It is regulated state by state, but there is no federal oversight. The cost of Workers' Compensation insurance has risen 50 percent in the last three years. The average medical cost per claim is $15,300 nationwide. Mr. Musgraves showed a comparison of benefit payments for the 11 largest state systems for the period 1997-2000, noting that even when adjusted for population, there is a fairly substantial gap and California is still the highest. The California Workers' Compensation system covers 13.5 million workers. The cost of insurance has nearly doubled in the last three years. Businesses are laying off workers, and closing or moving to other states. Nine of 12 insurance carriers specializing in Workers' Compensation in California have become insolvent, are in receivership, or have withdrawn from California so competition is significantly reduced. Medical costs paid by insurers during 2002 total $4.1 billion. Insurers experienced an underwriting loss of $3.3 billion in 2002. Using a graph, Mr. Musgraves stated that costs for the District were relatively stable in the past, but they have come up recently. In 1997-1998, District costs were just over $100,000 per year. In 2003-2004, those costs have risen to just over $600,000 per year. Factors driving costs upward include increased medical and legal costs, the impact of Assembly Bill 749 (California Labor Code, Section 4453(a» that deals with the maximum temporary disability rate, reduced competition in the insurance market, and dismal investment income. In addition, the average cost of indemnity claims has risen from $18,381 in 1991 to $44,940 in 2001. The trend is downward with regard to the District's Workers' Compensation claims history. Mr. Musgraves stated that this has a lot to do with the staffs management of claims at the District. Mr. Musgraves reviewed the experience modification factor for similar Bay Area agencies and noted that the District is positioned well, and staff is striving to improve our positioning. Mr. Musgraves provided a comparison of CSRMA and State Fund costs based on the sanitation payroll classification code for 2001-2002, 2002-2003, and 2003-2004. In 2001-2002 State Fund data was not available. In 2002-2003 and 2003- 2004 State Fund costs are nearly double CSRMA costs. Mr. Musgraves reviewed options available to the District, and recommended that the District maintain its Workers' Compensation insurance with CSRMA and continue to monitor CSRMA as compared to other joint powers authorities in State Fund. Following discussion of case management, President Nejedly and the Board of Directors thanked Mr. Musgraves for his informative presentation. 4) Mr. Batts, General Manager, introduced Ms. Harriette Heibel, Community Affairs Manager, who briefly reviewed the draft CCCSD Pipeline newsletter that was distributed prior to the Board Meeting and the proposed publication schedule, and requested input from the Board. The Board suggested that each award be highlighted, that the article on backwater overflow prevention devices be reworked, and that the names of overflow device installers not be listed since that would be free advertising. President Nejedly stated that he does not support giving away backwater overflow prevention devices. Ms. Heibel thanked the Board for their input. ~:! Q 10 0 49 BREAK At 4:28 p.m., President Nejedly declared a recess, reconvening at the hour of 4:38 p.m. 5) 6) 7) Mr. Batts, General Manager, announced that the District and the homeowners have signed the settlement agreement for repair of the St. Stephens slide, and the homeowners' contractor, Yagohian Grading, has started work. The Department of Fish and Game has issued the required permits. The District's share of the construction cost is estimated to be approximately $38,000. A final accounting of the costs will occur with the homeowners once all the work is completed and the costs are in. The City of Orinda has agreed to contribute $12,000 for lining the portion of the storm drain in public right-of-way. Mr. Batts, General Manager, stated that at his presentation on near-term savings achieved by the District, there was a request for information on labor costs and savings, including vacancy factors for the last several years. A memo summarizing that information for the most recent ten years was distributed. Mr. Batts, General Manager, stated that this has been a banner year for the District. Not only has the District received major state and national awards for operations and various programs, but we also have improved in many productivity goals and reduced overall costs reflected in the $3 million budget savings, and have the stability of a six-year labor agreement. The most recent recognition of the District's achievements is the U.S. Environmental Protection Agency Award for Excellence in Operations and Maintenance recognizing the District as the finest large treatment facility in the nation. To commemorate these significant achievements over the last year, the District will be holding an employee celebration event on October 3, 2003 from 1 :00 p.m. to 3:00 p.m. outside the laboratory area. Mr. Batts distributed invitations and stated that he would be pleased if Board Members could attend. 8) Mr. Batts, General Manager, reported that the 2003 Water Environment Federation Technical Exhibition and Conference (WEFTEC) is being held this October in Los Angeles. The U.S. EPA National Operations and Maintenance Excellence Award is also being presented at one of the conference events. A number of Operations and Engineering staff will attend because it is an excellent opportunity to obtain high-caliber training. Because of the conference location this year, the travel costs will be relatively low. Mr. Batts invited Board Members to attend the U.S. EPA award presentation. Member Lucey requested that an item be calendared on the next Board Meeting agenda for the Board to consider taking out an ad in the Contra Costa Times announcing that the District has received this award and commending and thanking employees for their outstanding work. Member Lucey stated that this is a remarkable achievement. 9) Mr. Batts, General Manager, distributed an announcement of a public workshop on the Happy Valley Sewer Renovation Project to be held on Monday, September 29, 2003 from 7:00 p.m. to 9:00 p.m. at the Lafayette Community Center. 10) Mr. Batts, General Manager, announced that surplus equipment and vehicles will be sold at 7:00 p.m. on Saturday, September 27, 2003, at First Capitol Auction in Vallejo. 09 18 03 50 11 ) Mr. Batts announced that the Contra Costa Boulevard Slip Lining Project now under construction is the first time the District has used the segmental slip lining method. Board Members were invited to come out to visit the job site this week. Construction complications are requiring that the construction slip into next week. Staff will keep the Board informed of the work, and a time when the site can be visited. Member Lucey left the meeting at the hour of 4:45 p.m. b. COUNSEL FOR THE DISTRICT 1) c. d. a. Mr. Kenton lo Aim, Counsel for the District, announced that his contract with the District historically has been the same length as the District's labor contracts and follows after them. This matter will be coming to the Board in the near future. SECRETARY OF THE DISTRICT None BOARD MEMBERS 1) Member Menesini, Chair of the Personnel Committee, distributed and reviewed notes from the September 11 , 2003 Personnel Committee meeting at which Local One representatives spoke on the Plant Operator III provisional appointment item. The Personnel Committee endorsed requests to fill the vacant Construction Equipment Operator and Engineering Technician 1/11 positions. The proposed Purchasing and Materials Services Division reorganization was discussed and a position paper will be presented for full Board consideration at a future Board Meeting. 2) Member Menesini announced that the September 15, 2003 Environmental Alliance Discussion Series featured Ms. Mary Hansel, CPA and Sustainability Manager at Corollo Engineers. 8. ENGINEERING APPROVE SUPPLEMENTAL AUTHORIZATION OF 220 000 TO THE GENERAL IMPROVEMENTS PROGRAM OF THE 2003-2004 CAPITAL IMPROVEMENT BUDGET Mr. Batts, General Manager, stated that Board authorization is required to move funds to program budgets from the Sewer Construction Fund. Authorization is requested for allocation of an additional $220,000 from the Sewer Construction Fund to the General Improvements Program of the 2003-2004 Capital Improvement Budget (CIB). This additional authorization is necessary to fund the replacement of the fuel system at the Collection System Operations yard. The authorization will allow the improved fuel system project to meet regulatory requirements and future needs, and will allow budgeted projects to continue as presented in the 2003-2004 CIB. It is anticipated that the overall CIB as presented in the Board workshop will be underspent this fiscal year. It was moved by Member Menesini and seconded by President Nejedly, that an additional $220,000 be authorized from the Sewer Construction Fund to the General Improvements Program of the 2003-2004 Capital Improvement Budget for the CSOD Fuel System Modifications Project, DP 8201. There being no objection, the motion was approved with Member Lucey being absent. fj G,--.-.¡ ~, vI 18 51 a. 9. CORRES~ONDENCE PRESENTATION BY CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY BOARD MEMBERS ERLING HORN AND SUE RAINEY REGARDING REQUEST TO JOINTLY FUND ONE JOINT HOUSEHOLD HAZARDOUS WASTE/E-WASTE EVENT DURING FISCAL YEAR 2003-2004 This item was taken out of order earlier in the agenda. 10. APPROVAL OF MINUTES MINUTES OF AUGUST 21.2003 a. It was moved by Member Menesini and seconded by Member Hockett, that the minutes of August 21,2003 be approved as presented. There being no objection, the motion was approved with Member Lucey being absent. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED SEPTEMBER 18. 2003 President Nejedly, member of the Budget and Finance Committee, stated that he and Member Lucey reviewed the expenditures and would recommend approval. It was moved by President Nejedly and seconded by Member Hockett, that the Expenditure List dated September 18, 2003, including Self Insurance Check Nos. 102045-102046, Running Expense Check Nos. 146480-146646, Sewer Construction Check Nos. 26001-26030, Payroll Manual Check Nos. 48918-48932, and Payroll Regular Check Nos. 54746-54779, be approved as recommended. There being no objection, the motion was approved with Member Lucey being absent. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly requested an update on the Treatment Plant Soil Remediation Project in Basin A South at a future Board Meeting. 14. CLOSED SESSION a. INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District has decided or is deciding whether to initiate litigation. One potential matter is to be discussed. At 4:55 p.m., President Nejedly declared the closed session to discuss initiation of litigation pursuant to Government Code Section 54956.9(c) as noted above. At 5:04 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION At this time, President Nejedly returned to Item 6.a., which was deferred until after closed session. 09 18 03 52 a. 6. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE SOURCE PURCHASE OF UP TO SIX CORNELL PUMPS. MOTORS. AND SPARE PARTS FOR THE MORAGA AND ORINDA CROSSROADS PUMPING STATIONS FOR AN AMOUNT NOT TO EXCEED 325000 It was moved by Member Menesini and seconded by President Nejedly, that the General Manager be authorized to execute a sole source purchase of up to six Cornell pumps, motors, spare parts, and contingency for the Moraga and Orinda Crossroads Pumping Stations for an amount not to exceed $325,000. There being no objection, the motion was approved with Member Lucey being absent. At this time, President Nejedly reverted to the order of the agenda. 16. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 5:06 p.m. -4fMioß~~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 09 l-~'. ~,~' ""',,,' (J (')\,'," 1,1 V