HomeMy WebLinkAboutBOARD MINUTES 10-02-03
53
MINUTES OF THE REGULAR BOARD MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON OCTOBER 2, 2003
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 October 2, 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
a.
PLEDGE OF ALLEGIANCE TO THE FLAG
Board and staff joined in the Pledge of Allegiance to the Flag.
2. PUBLIC COMMENTS
Mr. Mike Vogan, Public Works Director of the City of Concord, announced that he is
retiring after 35 % years. Mr. Vogan thanked the District Board and staff for the
cooperative working relationship through those years. Mr. Vogan introduced Mr. Qamar
Khan, who will be replacing him as Public Works Director. Mr. Khan has been
Infrastructure Manager at the City of Concord for the past five years.
President Nejedly and the Board of Directors congratulated Mr. Vogan upon his
retirement and commended him for his cooperative approach in working with the
District.
3. AWARDS AND COMMENDATIONS
a.
PRESENTATION OF CONTRA COSTA ECONOMIC PARTNERSHIP SMART
PERMITTING AWARD BY DON MANNING AND LINDA BEST
Mr. Charles W. Batts, General Manager, stated that the Contra Costa Economic
Partnership is a coalition of businesses, local government, and schools that promotes
long-term economic development in Contra Costa County. One of its goals is to work
with the public and private sectors to streamline the permitting processes for
businesses. For the past several years, the partnership has conducted evaluations of
the permitting agencies within the County, and recognized agencies that have shown
excellence in customer service and business permitting.
Mr. Batts introduced Ms. Linda Best and Mr. Don Manning, of the Contra Costa
Economic Partnership. Ms. Best stated that she is very pleased to present this award to
Central Contra Costa Sanitary District today. Ms. Best stated that since 1998, Contra
Costa Economic Partnership has been conducting reviews of business permitting in
Contra Costa County, recognizing best management practices in permitting.
Mr. Don Manning stated that for this year's award, as last year, the Contra Costa
Economic Partnership contracted with an independent survey firm to conduct "mystery
shops" at 23 permitting jurisdictions in Contra Costa County. Mr. Manning stated that it
is a pleasure to present the Smart Permitting - Contra Costa 2003 First Place Award to
Central Contra Costa Sanitary District, and to recognize the District's Permit staff for the
outstanding customer service and friendliness they show at the permit counter.
Mr. Kurt Darner, Supervising Engineering Assistant, stated that this award means a lot
to Permit Section staff because it recognizes how staff conducts daily operations. Mr.
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Darner recognized Permit Section staff Jolene Bertera, Amy Hernandez, Molly Mullin,
and Brenda Wener.
Member Hockett stated that it is wonderful to have an organization such as the Contra
Costa Economic Partnership go to the effort of doing benchmarking. It is very difficult
for an agency to measure itself. Member Hockett thanked the Contra Costa Economic
Partnership, stating that their recognition is truly appreciated.
On behalf of the Board of Directors, Member Menesini commended Permit Section staff
Jolene Bertera, Kurt Darner, Amy Hernandez, Molly Mullin, and Brenda Wener on
receiving the Contra Costa Economic Partnership Smart Permitting Award, and on the
excellent work and the outstanding customer service that they provide.
4. CONSENT CALENDAR
It was moved by Member Hockett and seconded by Member Lucey, that the Consent
Calendar, consisting of Items a. through c., be approved as recommended, resolutions
adopted as appropriate, and recordings duly authorized.
Public sewer improvements and an Offer of Dedication were accepted at no cost
to the District from Joseph P. Grillo and Victoria Grillo, Job 5503, Parcel 1,
Orinda area; staff was authorized to record the easement acceptance with the
Contra Costa County Recorder; and Resolution No. 2003-069 was adopted to
that effect.
a.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
b.
Hockett, Lucey, Menesini, Boneysteele, Nejedly
None
None
Resolution No. 2003-070 was adopted, confirming publication of District
Ordinance No. 227, amending District Code Section 6.12.090 Schedule of
Capacity Fees, Rates, and Charges.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Hockett, Lucey, Menesini, Boneysteele, Nejedly
None
None
Resolution No. 2003-071 was adopted confirming publication of District
Ordinance No. 228, an ordinance amending District Code Section 6.30 Schedule
of Rates and Charges for Various Environmental and Development-Related
Services.
c.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Hockett, Lucey, Menesini, Boneysteele, Nejedly
None
None
5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
Item 9.a., Engineering, was taken out of order later in the agenda to accommodate
interested persons in the audience.
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a.
6. BIDS AND AWARDS
REJECT ALL BIDS RECEIVED FOR THE CONSTRUCTION CONTRACT FOR
THE HAPPY VALLEY ROAD SEWER RENOVATION PROJECT. DP 5692
Mr. Batts, General Manager, stated that the Happy Valley Road Sewer Renovation
Project was proposed to install 1,000 feet of 15-inch diameter pipe by open cut, 1,300
feet by pipe bursting, and 100 feet of steel encased pipe. As stated in the position
paper, staff recommends rejecting all bids and re-bidding the project next year. Staff
has determined that the high bids are due to a combination of factors: heavy
construction workload at this time of year resulting in limited contractor interest; the
close proximity of parallel water lines to the proposed sewer; and the imposition of
limited hours of work by the City of Lafayette since school is in session.
Following discussion, it was moved by Member Hockett and seconded by Member
Menesini, that all bids received for the contract for the construction of the Happy Valley
Road Sewer Renovation Project, DP 5692, be rejected. There being no objection, the
motion was unanimously approved.
7. REPORTS
a.
GENERAL MANAGER
1)
Mr. Batts, General Manager, stated that Pumping Stations Supervisor Leo
Gonzalez has chaired several committees for the California Water
Environment Association (CWEA), and this year he is the Chair of the
State Awards Committee. Mr. Batts stated that due to Board interest, he
asked Mr. Gonzalez to give a brief report on the recent CWEA Northern
Regional Training Conference, and the valuable education and training it
provides.
Mr. Batts introduced Mr. Leo Gonzalez, Pumping Stations Supervisor, who
stated that CWEA is an organization dedicated to enhancing the education
of wastewater professionals providing training in all aspects of
wastewater, certification in various wastewater skills, dissemination of
technical information, and policies to protect the water environment.
CWEA provides value to its members in a number of ways. CWEA
provides opportunities for professional growth. CWEA offers education
and training to assist in fine-tuning skills needed by wastewater
professionals at many outstanding statewide, regional, and local section
events. The voluntary technical certification program is administered twice
a year in six different disciplines: Collection Systems Maintenance,
Laboratory Analysis, Mechanical Technology, Electrical and
Instrumentation, Environmental Compliance Inspection, and Industrial
Waste Treatment Operation. Members can take advantage of networking
opportunities through specialty conferences, association meetings, and
certification trainings to connect with one another and keep updated. Mr.
Gonzalez stated that professional accomplishment is recognized through
an awards program that presents more than 300 awards annually.
Awards are given for distinguished service, significant contributions to the
field, and for leadership in the promotion of issues affecting wastewater.
Mr. Gonzalez stated that CWEA also has a scholarship program that
annually awards money to students interested in wastewater careers.
Mr. Gonzalez provided highlights of the recent CWEA Northern Regional
Training Conference included training sessions on Safety, Collection
Systems, Asset Management, and Operator Training and Certification.
Sessions were well attended and informative with high quality speakers.
Mr. Gonzalez stated that contact hours and Continuing Education Units
(CEU's) are earned by CWEA members attending these sessions. A
vendor and equipment show featured displays by 54 vendors. The vendor
and equipment exhibits offer members a unique opportunity to make
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contact with the providers of goods and services, and review new products
and services developed for use in the wastewater industry.
Mr. Gonzalez stated that the value to attendees of the CWEA Northern
Regional Training Conference is that they receive updates on emerging
regulations, exposure and training on new technology, training on
applicable safety issues, networking between agencies, vendor and
equipment exhibits, and an opportunity to earn required contact hours and
CEU's. There were 144 agencies and 54 vendor companies represented
at the recent CWEA North Regional Training Conference. Attendees per
agency ranged from a low of one to a high of 18. In summary, Mr.
Gonzalez stated that the CWEA Northern Regional Training Conference
was a success by all measurements. Employees earned valuable CEU's
and contact hours, benefiting both the employees and their agencies.
Membership with CWEA offers people involved in the wastewater industry
additional professionalism that may be difficult to find elsewhere. Sending
employees to conferences and seminars held through CWEA enhances
their ability as professionals, which in turn makes the agency stronger and
keeps us on the cutting edge of technology.
Discussion followed with regard to validation of the CEU's and the
requirement that contact hours be within your field with the exception of
safety which qualifies in all fields. Mr. Gonzalez noted that 12 contact
hours are required for certification renewal. Mr. Gonzalez stated that
rooms and conferences are less expensive in Nevada. Mr. Gonzalez
stated that he will be Conference Chair next year for the conference to be
held in Sparks, Nevada.
President Nejedly and the Board thanked Mr. Gonzalez for the report and
for taking a leadership role.
2)
Mr. Batts, General Manager, stated that as discussed with the Board
previously, District staff is concerned that the future costs for the District
for the Contra Costa County Employees Retirement Association
(CCCERA) were based on the over-estimate of future earnings, the final
settlement of the Paulson claim, and the impact of future actuarial studies.
The employer and employee contributions have been raised to cover the
immediate impact of lower returns, the District contributed to the final
settlement of the Paulson claim, and the latest actuarial study has been
released. While the District still has several questions regarding the
numbers, they actually indicate a modest decrease in rates. These issues
will be reviewed as part of the Board Financial Workshop in January. Mr.
Batts stated that he will suspend the regular updates and report only if
there is some new development.
Member Lucey requested that the Board be kept advised of what is
happening with regard to Delta Diablo Sanitation District's investigation of
CaIPERS. Mr. Batts stated that he would keep the Board informed.
3)
Mr. Batts, General Manager, stated that Conco Cement Company has
submitted a permit application to Contra Costa County to construct a
corporation yard and maintenance facility north of the District overflow
basins on the former IT property. The County hearing on this
development will be scheduled shortly and is the proper venue for the
District's comments. Mr. Batts introduced Mr. Henry Thom, Senior
Engineer, who stated that Land Use Permit applications for use of the
former IT property have been made by Conco Cement Company for a
cement truck and equipment maintenance yard and wood form fabrication
facility; and by U.S. Development for a cement plant, aggregate storage,
and rail yard. Using a map, Mr. Thom described the locations of the
proposed developments and District facilities including the Outfall,
Martinez Force Main, and two recycled water conduits. Conco proposes
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to build a bridge over the District's outfall easement. Mr. Thom stated that
the proposed use (light industrial with limited access by the general public)
is compatible with District operations. The developments are potential
good neighbors and could provide continued buffer zone. Conco has
expressed willingness to work with the District on any easement issues.
Mr. Thom stated that Conco will need an improved access easement and
has proposed a 24-foot paved road over the existing access easement
(Waterbird Way). Mr. Thom stated that the District has concern over
future traffic impacts. It is estimated that approximately 200 roundtrips per
day will be made by Conco and U.S. Development. The District will
require Conco to prepare a Traffic Study and to install all improvements.
The District will negotiate with Conco on easement compensation. Conco
has requested that the District quitclaim the unused District easement on
their site. Conco has tentatively agreed to District access over the entire
Conco site, District exclusive right for the M-2 easement, and District
discharge through the existing drainage channel south of the property.
Mr. Thorn stated that long-term impacts include the District's future use of
the area; traffic, security, and operational impacts including future lease
sites; and protecting District facilities located on the Conco site. Mr. Thom
stated that the U.S. Development issues will be addressed in the future.
The following staff actions items are proposed:
.
That staff respond to the County's request for input on the
proposed development;
.
That staff provide input into Conco's Traffic Study;
.
That staff enter into negotiations with Conco;
.
That staff report back to the Board in closed session;
.
That staff complete negotiations with Conco;
.
That staff present a position paper to the Board for consideration;
.
That staff monitor construction activities to ensure protection of
District interests; and
.
That staff follow and respond to future developments near the
treatment plant site.
Following discussion of the potential for a win/win and the likely traffic
impacts, President Nejedly thanked Mr. Thom for the update.
4)
Mr. Batts, General Manager, stated that the Outfall Improvements Project,
Phase 5, DP 7197, has been under construction for the pastfive months
and is now nearing completion. Mr. Batts introduced Mr. Alex Rozul,
Associate Engineer, who stated that Power Engineering Contractor's of
Alameda, California, the contractor for the Outfall Improvements Project,
Phase 5, DP 7197, was issued the Notice to Proceed on May 14, 2003.
The contract completion date is October 21,2003, but the Regional Water
Quality Control Board permit requires that flow be returned to the Outfall
on October 2,2003, today; and that is being done now. The project is 90
percent complete. There have been seven change orders on the project
with a total value of $367,000, 25 percent of the original contract amount.
Mr. Rozul noted that the major change order was approved by the Board
to increase the number of joints sealed, also there will be a credit change
order at the end of the project for approximately $225,000 or about 15
percent of the contract amount. Discussion followed with regard to the
change orders.
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5)
10
Mr. Rozul showed photographs and provided a project summary as
follows:
.
Inspected and pressure tested 1,524 joints;
Installed 305 new mechanical seals and re-expanded and tightened
84 existing seals;
Installed 14 new thrust restraints;
Installed two (2) new air relief valves;
Replaced the 72-inch gravity valve;
Repaired the 60-inch standby effluent pump suction valve;
Refurbished two (2) 60-inch valves at the filter plant valve structure;
Manufactured and delivered a new outfall structure slide gate;
Rehabilitated the inside surface of approximately 200 feet of
concrete pipe and 70 feet of steel pipe;
Refurbished three (3) steel 72-inch flange coupling adapters; and
Sealed leaks in the concrete pipe at various locations by injecting a
specialized grout.
.
.
.
.
.
.
.
.
.
.
President Nejedly thanked Mr. Rozul for the report.
Mr. Batts, General Manager, stated that the Lower Orinda Pumping
Station is the District's oldest pumping station at over 50 years old. It is
scheduled for extensive renovations in order to improve the reliability.
Since this project schedule was extended, a review of the project is timely.
The renovations to the existing station will include instrumentation,
mechanical, structural, and architectural improvements. The District is
working with other agencies and the Orinda Country Club to obtain all the
necessary permits and property rights. The current schedule is to
advertise the project for bids in October with construction starting in
January 2004. Construction is scheduled to be completed by December
2005. Mr. Batts introduced Mr. Andrew Antkowiak, Associate Engineer,
who provided an update on the Lower Orinda Pumping Station Renovation
Project and notified the Board of advertisement of the project. Using a
map, Mr. Antkowiak described the location of the Lower Orinda Pumping
Station, the surrounding area and watershed. As Mr. Batts indicated, the
Lower Orinda Pumping Station is the oldest District pumping station and
the equipment is at the end of its useful live and difficult to maintain. The
Lower Orinda Pumping Station is next to a creek that drains into San
Pablo Reservoir, an East Bay Municipal Utility District drinking water
reservoir. Mr. Antkowiak showed photographs of the existing pumping
station, the equipment, and access road. Mr. Antkowiak reviewed the
project background, indicating that this is an essential project that has
already been delayed for two years. The project will remodel the existing
pumping station. The estimated construction cost is approximately $6.1
million. The project must be advertised now for spring construction. The
project construction will take two years.
Mr. Antkowiak stated that staff is working on various project issues. Staff
met with the City of Orinda early in the project and got their input during
evaluation of alternatives. Now, the City has no objection to the proposed
projects and the necessary permits have been received from the City of
Orinda. Staff has received the draft General Use Permit. The cost was
$2,100 for the review and General Use Permit. The City of Orinda is
granting the District a zoning variance and creek setback variance. A tree
removal permit has been approved to remove two large oak trees and to
plant four oak trees in another location or to pay $250 to the City's fund to
plant other trees. Staff is working with the Department of Fish and Game
to obtain the required permit.
Mr. Antkowiak stated that because the existing pumping station is being
enlarged, additional land rights are required. Temporary construction
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6)
7)
8)
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easements are also needed from the Orinda Country Club; and as part of
the project, the District will be upgrading the existing access easement.
As part of the project review;.it was found that the District does not have
recorded easement between Miner Road and the Orinda Country Club
property, the entrance to the pumping station. The District is in the
process of talking to the property owner and the Orinda Country Club with
regard to upgrading our rights and formally recording the easement.
Mr. Antkowiak stated that because this is a two-year project that will
impact the Orinda Country Club, construction mitigation measures will be
put in place for:
.
Tree replacement;
Visual screening during and after construction;
Relocation of Club facilities impacted by construction;
Replacement of driveway with concrete; and
Restoration of any damage.
.
.
.
.
Mr. Antkowiak stated that project issues for the District include maintaining
operation of the pumping station during construction, and the limited
amount of working space. The engineer's construction cost estimate is
$6.1 million, and the total project cost is estimated to be approximately
$8.3 million. Mr. Antkowiak reviewed the project schedule calling for
advertisement in October 2003, bid opening November 14, 2003, award of
construction contract December 4, 2003, and completion of construction
by December 30,2005.
Discussion followed with regard to the access and property rights issues.
Mr. Kenton lo Aim, Counsel for the District, stated that if agreement
cannot be reached with the property owner, staff may be coming back to
the Board to request adoption of a Resolution of Necessity to obtain the
necessary property rights so that project construction will not be delayed.
President Nejedly thanked Mr. Antkowiak for the project status report.
Mr. Batts, General Manager, announced that the Employees Service
Awards luncheon will be held on November 21 ,2003. This year 27
employees will be honored. Mr. Batts invited the Board to attend the
luncheon.
Mr. Batts, General Manager, invited the Board to attend the Community
Health Appeal/United Way fundraising kickoff event that will be held at
7:00 a.m. on November 5, 2003.
Mr. Batts, General Manager, distributed photographs and reported that the
homeowner project to repair the St. Stephens slide in Orinda is nearly
finished. The existing storm drain was lined on Saturday, September 20,
2003. Rock riprap was placed in the slide area and rebuilding of the
bench in the slope should be finished by the end of this week.
b.
COUNSEL FOR THE DISTRICT
None
c.
SECRETARY OF THE DISTRICT
None
d.
BOARD MEMBERS
1)
Member Menesini, Chair of the Outreach Committee, reported that he and
Member Boneysteele met with staff on September 23, 2003. Member
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Menesini distributed and reviewed notes from that meeting at which major
topics of discussion included dental mercury outreach, Alhambra Valley
outreach, construction projects debrief, backwater overflow prevention
device outreach, and Member Lucey's suggestion that the Board consider
placing an ad in the Contra Costa Times recognizing employees for their
outstanding efforts. Staff was requested to have information available at
the Board Meeting on the costs of various size ads and a general
suggestion of what a full-page, half-page, and quarter-page ad might
include.
2)
Member Lucey suggested that the Board take out a full-page ad thanking
employees for their outstanding efforts that resulted in the District
receiving the U.S. Environmental Protection Agency (EPA) National
Operations and Maintenance Excellence Award. Staff has provided
information to the Board on costs for various sizes and publication days,
as well as a listing of some of the major awards received by the District
this year. Discussion followed concerning the size of an ad, the
information that would be included, and the day of publication. President
Nejedly stated that he is opposed to a full-page ad, but he does believe
that the District should let the public know about the awards that the
District has received.
Following discussion, it was moved by Member Lucey and seconded by
Member Menesini, that a full-page ad be placed in the Contra Costa
Times on a Monday or Tuesday, congratulating and thanking District
employees for their outstanding efforts which resulted in the District
achieving national, state, and local awards and recognition, and that staff
come back to the Board at the next Board Meeting with suggested layouts.
The motion was approved with President Nejedly voting no.
Noting the presence of Mr. Scott Busby, President Nejedly departed from the order of
the agenda to consider Item 9.a., Engineering.
9. ENGINEERING
a.
ACCEPT THE FACILITIES PLAN FOR WASTEWATER UTILITY SERVICE TO
ALHAMBRA VALLEY. DP 5919
Mr. Batts, General Manager, stated that the draft Facilities Plan for Wastewater Utility
Service for the Alhambra Valley was presented to the Board at the last Board Meeting.
This plan evaluated the technical alternatives for serving the Alhambra Valley,
concluding that the best long-term solution would be a gravity sewer system. It is
proposed that the draft plan be finalized so that the technical information can be used in
the developer's Environmental Impact Report (EIR) for a proposed 23-lot subdivision,
and to respond to requests from the County, City of Martinez, and residents about
providing sewer service. At the last Board Meeting, staff also discussed this plan and
possible approaches on public outreach and sewer financing. These topics will come
before the Board in future meetings for consensus or direction.
Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager,
who stated that staff has made minor revisions to the draft Facilities Plan since it was
distributed to the Board at the last Board Meeting. A summary was added at the front of
the document. An adjustment was made to the gravity sewer cost estimate and it was
increased to $3.2 million, about a 5 percent increase to the original estimate. Staff is
not sure if one pumping station is sufficient to serve the area. High head losses could
necessitate a second pumping station. Mr. Swanson used a map to describe the
alternative force main alignment along Alhambra Valley Road towards Gilbert Lane.
In response to questions from Member Lucey, Mr. Batts stated that the Board is not
being asked to make a decision with regard to a project at this time. The Board is being
asked to accept the Facilities Plan so it can be finalized and given to the public who
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have requested information, the developer for use in the EIR process, and the County
who have requested information for their permitting process.
Mr. Kenton L. Aim, Counsel for the District, stated that for the County to issue permits,
they must consider transportation, water, fire, sewer, and various other services. The
County came to the District asking if the District can serve the proposed development;
and if so, how the District would serve it. Additional California Environmental Quality
Act (CEQA) compliance and other things would be required before anything would be
built.
Further discussion followed with regard to the Alhambra Valley being outside the current
District service area, but within the District's Sphere of Influence.
Member Menesini stated that it is important to have a road map not just for the current
proposed development, but for the future. It is important for the residents to know the
District is looking ahead so they can start planning the financial benefits of one route or
another. Member Menesini stated that the gravity alternative seems to be a more
effective and efficient than the pumping station alternative.
Mr. Batts stated that Mr. Scott Busby has had contact with some of the neighbors who
sent in letters to the Board this past week expressing interest in sewer service in the
Alhambra Valley. Copies of the following letters were distributed and receipt was noted:
.
Letter dated September 25, 2003 from George E. Freschi, 132 Gordon Way,
Martinez
.
Letter dated September 26, 2003 from Ken and Kristine Elford, 1064 Rolling Hill
Way, Martinez
.
Letter dated September 26, 2003 from Bob Hadzor, 66 Quail Lane, Martinez
.
Letter dated September 26, 2003 from Rick Johnson Insurance, 5255 Alhambra
Valley Road, Martinez
.
Letter dated September 27,2003 from Dorothy Plummer, 110 Hill Girt Ranch
Road, Martinez
.
Letter dated September 28,2003 from Dianne Howell and Elaine Frank, 14
Millthwait Drive, Martinez
.
Letter dated September 28,2003 from Lynda Major, 140 Hill Girt Ranch Road,
Martinez
It was moved by Member Menesini and seconded by Member Hockett, that the
Facilities Plan for Wastewater Utility Service to Alhambra Valley, DP 5919, be accepted.
There being no objection, the motion was unanimously approved.
At this time, President Nejedly reverted to the order of the agenda.
BREAK
At 4:05 p.m., President Nejedly declared a recess, reconvening at the hour of 4:15 p.m.
with all parties present as previously designated.
8. ADMINISTRATIVE
a.
ACCEPT PURCHASING POLICIES GOVERNING THE PROCUREMENT OF
GOODS AND SERVICES FOR THE CENTRAL CONTRA COSTA SANITARY
DISTRICT
Mr. Batts, General Manager, stated that proposed updates to the District Purchasing
policies were provided to the Board with the position paper. The material was
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discussed with the Board Budget and Finance Committee; however, there was not
sufficient time to review the policies. Staff will complete this review and return at a
future Board Meeting to request Board adoption. Mr. Batts introduced Director of
Administration Randall M. Musgraves and Purchasing and Materials Manager Diane
Wagner who will make a brief presentation.
Member Lucey, Chair of the Budget and Finance Committee, stated that this matter
came up at the September 29, 2003 Budget and Finance Committee, but the District's
outside auditors were also present at that meeting discussing the District's annual audit,
and there was not enough time to complete the review of the Purchasing policies.
Member Lucey stated that the work appears to be very thorough and he does not have
any problems with it but the Committee would like to complete its review with staff.
Mr. Randall M. Musgraves, Director of Administration, thanked the Board for the
opportunity to make a brief presentation on the proposed Purchasing Policies and
Procedures. A copy of the draft Purchasing Policies and Procedures Manual was
distributed to the Board prior to the Board Meeting. The policy portion is what the Board
will be asked to adopt. The manual supports the policies. As stated earlier, staff was
unable to complete the review with the Board Budget and Finance Committee and
requests that this item be held over to a future Board Meeting.
Mr. Musgraves stated that the philosophy of the Purchasing and Materials Services
Division is to ensure that goods and services are available in a timely and cost effective
manner. The goals of the Division are to:
.
Reduce costs through competitive pricing on goods and services with high
payback;
.
Improve cost effectiveness of purchasing and warehousing activities;
.
Improve staff productivity; and
.
Comply with legal requirements and reduce risk.
Mr. Musgraves stated that the strategies employed to achieve these goals are to:
.
Decrease the time to complete purchasing transactions by automating the
contract document process;
.
Clarify District Purchasing Policies, Procedures and Practices to reduce
confusion and errors by updating the District's Purchasing Policies and
Procedures last updated in 1988, developing a Purchasing User Manual, and
providing District-wide training; and
.
Improve response time and reduce District risk by implementing Annual
Contracts, obtaining insurance prior to work performed, updating contract
language, and reviewing Blanket Purchase Order need and usage.
Ms. Diane Wagner, Purchasing and Materials Manager, reviewed the key changes
being proposed to the Purchasing Policies and Procedures. The proposed Purchasing
Policies and Procedures are organized around specific topics and include expanded
discussion on procurement topics. Two verbal quotations will be required for items
exceeding $3,500 and three written quotes will be required for items exceeding
$15,000. Ms. Wagner stated that this will allow staff time to be spent on the larger value
items where the payback will be greater. Eighty (80) percent of Purchase Orders are
less than $3,500 and comprise $1 million of the $10 million total. Field Purchase Orders
will be provided as a means by which managers and supervisors can expedite the
purchase of goods and materials less than $3,500. The Procurement Card purchase
transaction limit will be established at $500 for general employees. Managers,
supervisors, and key personnel may have higher limits. Ms. Wager stated that
implementation will be done in four phases. Phase I is complete pending adoption by
the Board. Phase I includes update to Purchasing Policies and Procedures,
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development of User Manual, modification of Procurement Card Program, and
development of Annual (Master) Contracts to take advantage of buying larger volumes
and getting set prices. Phase II, obtaining agreement from District management and
the Board, is going on now. Phase III will occur in the November-December timeframe.
In Phase III, Purchasing staff will train employees, supervisors, and managers; work
with employees for compliance; and monitor the process for continuous improvement.
Phase IV will be ongoing and will include audit processes to ensure compliance and
success for all customers.
In response to questions from Member Hockett, Mr. Musgraves described the ongoing
monitoring and audit of the Procurement Card Program to ensure compliance.
Member Menesini commended Ms. Wagner on the comprehensive nature of this
volume, stating that it is a monumental piece of work. Member Menesini stated that if
he were teaching a course in Purchasing he would use this as the textbook.
Ms. Wagner thanked the Board, stating that this was reviewed by staff, and they
provided good comments.
9. ENGINEERING
a.
ACCEPT THE FACILITIES PLAN FOR WASTEWATER UTILITY SERVICE TO
ALHAMBRA VALLEY. DP 5919
This item was taken out of order earlier in the agenda.
Mr. Kenton lo Aim, Counsel for the District, had previously requested to be excused and
left the meeting at the hour of 4:38 p.m.
10. CORRESPONDENCE
a.
RECEIVE LETTER DATED SEPTEMBER 22.2003 FROM MS. ELIZABETH
ALLAN. EXECUTIVE DIRECTOR OF THE CALIFORNIA WATER
ENVIRONMENT ASSOCIATION. COMMENDING MR. LEO GONZALEZ.
PUMPING STATIONS SUPERVISOR. FOR THE TREMENDOUS JOB HE DID
IN HOSTING AND MANAGING THE NORTHERN REGIONAL TRAINING
CONFERENCE AS PROGRAM CHAIR
Receipt was noted of the letter dated September 22, 2003 from Ms. Elizabeth Allan,
Executive Director of the California Water Environmental Association (CWEA)
commending Mr. Leo Gonzalez, Pumping Stations Supervisor, for the tremendous job
he did in hosting and managing the Northern Regional Training Conference as Program
Chair. The Board requested that a memorandum be drafted commending Mr. Gonzalez
for his leadership to CWEA and the District.
11. APPROVAL OF MINUTES
a.
MINUTES OF REGULAR MEETING OF SEPTEMBER 4.2003
MINUTES OF ADJOURNED REGULAR MEETING OF SEPTEMBER 8. 2003
b.
It was moved by Member Hockett and seconded by Member Menesini, that the minutes
of the regular meeting of September 4, 2003 and the minutes of the adjourned regular
meeting of September 8, 2003, be approved as presented. There being no objection,
the motion was unanimously approved.
12. APPROVAL OF EXPENDITURES
a.
EXPENDITURE LIST DATED OCTOBER 2. 2003
Member Lucey, Chair of the Budget and Finance Committee, stated that he and
President Nejedly reviewed the expenditures and would recommend approval.
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64
It was moved by Member Lucey and seconded by President Nejedly, that the
Expenditure List dated October 2,2003, including Self Insurance Check Nos. 102047-
101048, Running Expense Check Nos. 146647-146800, and Sewer Construction Check
Nos. 26031-26066, be approved as recommended. There being no objection, the
motion was unanimously approved.
13. BUDGET AND FINANCE
a.
RECEIVE AUGUST 2003 FINANCIAL STATEMENTS
Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance
(O&M) for the month of August 2003, noting that expenditures were $1.2 million greater
than budget, representing a 35 percent unfavorable variance. This negative volume
was mainly due to the Retirement Association's payment regarding the Paulson
decision of $1.6 million in August. Year-to-date O&M expenditures were $919,000
greater than budget, representing a 13 percent unfavorable variance. Year-to-date
O&M revenues for the month of August 2003, of $280,000 were $57,000 greater than
budget.
Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $1.5
million and expenditures were $3.3 million, cutting into reserves by $1.8 million.
Ms. Ratcliff reported that the District's temporary investments were held in commercial
paper and the District's Local Agency Investment Fund (LAIF) account. The average
yield of the District's LAIF account through August 2003 was 1.6 percent.
President Nejedly declared that the August 2003 Financial Statements were duly
received.
14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None
15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS
None
16. ADJOURNMENT
There being no further business to come before the Board, President Nejedly adjourned
the meeting at the hour of 4:43 p.m.
tors,
District,
of California
COUNTERSIGNED:
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