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HomeMy WebLinkAboutBOARD MINUTES 02-19-04 154 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 19, 2004 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 February 19, 2004. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Nejedly, Hockett, Lucey 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 JOHNNIE LEVINGSTON. NEWLY HIRED MATERIALS COORDINATOR . INTRODUCE SEAN SARRAS. NEWLY HIRED MAINTENANCE CREW MEMBER I . Mr. Johnnie Levingston, Materials Coordinator, and Mr. Sean Sarras, Maintenance Crew Member I, were introduced and welcomed to the District by President Lucey and the Board of Directors. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. through c., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. A utility easement was granted to Pacific Gas & Electric Company (PG&E) in connection with the Lower Orinda Pumping Station Renovation Project, DP 5448; staff was authorized to record the Grant of Easement with the Contra Costa County Recorder; and Resolution No. 2004-013 was adopted to that effect. Motion unanimously approved on the following votes: AYES: Members: Hockett, Nejedly, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: None b. The contract work for the Walnut Creek Sewer Renovation Project, Phase 1, DP 5428, by McNamara and Smallman, Inc., was accepted, and the filing of the Notice of Completion was authorized. Motion unanimously approved on the following votes: 02 19 04 155 AYES: Members: Hockett, Nejedly, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: None c. Paul Seitz, Engineering Assistant III (G69, $5,127-$6,199), was reclassified to Assistant Engineer (S72, $5,531-$6,696). Motion unanimously approved on the following votes: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Nejedly, Menesini, Boneysteele, Lucey None None Member Menesini requested that the Board's congratulations be conveyed to Mr. Seitz on his reclassification. 4. HEARINGS a. CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS: ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION. ARTICLE XIIID, SECTION 4: ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENTS: AND AUTHORIZE EXECUTION OF AGREEMENT WITH LA SONOMA WAY PARCEL OWNERS IN CONJUNCTION WITH THE LA SONOMA WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2002-5, DP 5714 Mr. Charles W. Batts, General Manager, stated that the La Sonoma Way Contractual Assessment District (CAD) in Alamo, is the second CAD project to be considered for funding this fiscal year, and the last CAD project to be considered for funding as the Board previously decided to eliminate the program after this fiscal year. Under the District's CAD program, the Board considers approval of a CAD project at three specific times. These approvals are at the initiation of the CAD, following the election by the affected property owners, and at project completion to set final assessments. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that the La Sonoma Way CAD No. 2002-5 is at the second decision point. The La Sonoma Way CAD meets all of the District CAD criteria. It benefits at least five properties, at least 60 percent are developed properties, and there are no more than two dwellings per property. Mr. Swanson stated that when the CAD started, there were five participants and one non-participant. This is a relatively small CAD project. Six homes could be served. The CAD project will install 327 feet of 8-inch sewer and three manholes. The estimated cost of the CAD project is $76,787. The estimated cost is $15,357 per participant, or $3,046 annually for ten years. As Mr. Batts indicated, this will be the last CAD project. If the La Sonoma Way CAD is approved, a total of $272,907 of the $300,000 CAD authorization will be allocated. At 2:08 p.m., President Lucey opened the public hearing to receive comments on the proposed La Sonoma Way Contractual Assessment District No. 2002-5. Mr. Swanson announced the results of the ballots submitted by owners of each affected parcel in the La Sonoma Way CAD No. 2002-5. An election by mail was conducted. The one non-participant did vote yes. Six ballots were in favor of and none were opposed to the proposed assessment. Mr. Swanson stated that the estimated assessments were revised to reflect six participants. The estimated cost is now $12,798 per participant, or $1,720 annually for ten years. 02 19 04 156 There being no further comments, President Lucey closed the public hearing at the hour of 2:10 p.m. It was moved by Member Hockett and seconded by Member Menesini, that Resolution No. 2004-014 overruling protests be adopted; that Resolution No. 2004-015 be adopted, confirming compliance with California Constitution Article XIIID, Section 4; that Resolution No. 2004-016 be adopted, approving the Engineer's Report, assessments, and ordering improvements; and that the General Manager be authorized to execute an agreement with the La Sonoma Way parcel owners in conjunction with the La Sonoma Way CAD No. 2002-5. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Boneysteele, Nejedly, Lucey None None Mr. Swanson introduced Mr. Pete Zipkin, the lead resident on the La Sonoma Way CAD project. Mr. Zipkin thanked the Board for their consideration and thanked staff for their assistance, particularly Messrs. Curt Swanson and Russ Leavitt. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. DIRECT STAFF TO SECURE THE SERVICES OF AN ARBITRATOR IN ACCORDANCE WITH THE DISTRICT'S GRIEVANCE PROCEDURE b. DIRECT STAFF TO SECURE THE SERVICES OF AN ARBITRATOR IN ACCORDANCE WITH THE DISCIPLINARY APPEAL PROCEDURE FOR GENERAL EMPLOYEES c. DIRECT STAFF TO APPOINT AN ARBITRATOR TO HEAR THE STEP FOUR GRIEVANCE OF PUBLIC EMPLOYEES' UNION. LOCAL ONE REGARDING PROVISIONAL PLANT OPERATOR III'S Mr. Batts, General Manager, stated that these items were held over from a previous Board Meeting and referred to the Board Personnel Committee. The Board has been provided with the information requested on the cost of the actions. The Board Personnel Committee has approved these items going forward to the full Board. Member Nejedly, Chair of the Board Personnel Committee, stated that the Committee recommends approval. It was moved by Member Nejedly and seconded by President Lucey, that staff be directed to secure the services of an arbitrator in accordance with the District's grievance appeal procedures in the matter of Senior Buyer Tammy Fong; that staff be directed to secure the services of an arbitrator in accordance with the District's disciplinary appeal process in the matter of Accounting Technician III David Rolley; and that staff be directed to secure the services of an arbitrator in the matter of Provisional Plant Operator Ill's. There being no objection, the motion was unanimously approved. 7. REPORTS a. GENERAL MANAGER 1) Mr. Batts, General Manager, stated that in anticipation of the spring construction season, the District will be bidding several construction 02 19 If" hi ~j, i ,',f' Ii,~"",j U'-X 157 projects. The Pleasant Hill Relief Interceptor Project, Phase 4, will construct approximately 4,000 feet of 30-inch reinforced concrete pipe in Patterson Boulevard from Boyd Road to Oak Park Boulevard. Installation of the sewer will be primarily by open cut trench with one 300-foot section that will be tunneled. One lane traffic control will be required on Patterson Boulevard. The District has been in contact with Sequoia Middle School, Sequoia Elementary School, and City of Pleasant Hill staff to address concerns with the construction. Mr. Batts stated that along with the Interceptor, approximately 3,000 feet of 12-inch and 10-inch PVC recycled water line will be installed in Patterson Boulevard from Boyd Road to Hawthorn Road, then east on Hawthorn to the ball fields near the old Pleasant Hill High School. Installation of the recycled water line will be by open cut trench. The District has been in contact with the new recycled water customers, Pleasant Hill Middle School and the Pleasant Hill Recreation and Park District, to address their concerns with the construction. The District held a public workshop on Tuesday, February 3, 2004, at the Pleasant Hill City Hall to answer questions about the Interceptor and Recycled Water Line Project, and to receive input from residents. About nine residents attended the public workshop. Associate Engineer Michael Penny did a great job of explaining the project. Also being bid on this project and constructed with the Interceptor and Recycled Water Line for economies of scale is the Happy Valley Road Sewer Project. This work includes the replacement of 2,400 feet of existing 10-inch sewer with a 15-inch sewer using open cut, pipe bursting, and tunneling on Happy Valley Road and Mt. Diablo Boulevard in Lafayette. A public meeting was held on February 10, 2004 at the Lafayette Community Center to discuss this project. Mr. Batts introduced Mr. Michael Penny, Associate Engineer, who provided an overview of the combined Pleasant Hill and Happy Valley Road project, and the Vessing Road Sewer Renovation Project, also in Pleasant Hill. Mr. Penny stated that the Vessing Road Sewer Renovation Project will replace 10,000 feet of existing 8-inch and 10-inch sewer with new 8-inch to 15-inch sewers along streets and easements in Pleasant Hill and unincorporated areas of the County. Mr. Penny used an aerial photograph to describe the project alignment, and photographs of various project locations to provide a sense of the difficulties that will be encountered on this project. There are capacity issues along creeks and maintenance issues. The roads affected are Oak Park Lane, Vessing Road, Vicki Drive, Barnett Circle, Foothill Park Circle, Del Oceano Drive, and Diablo View Road. More than half the pipe is in easements. There are six creek crossings, and many trees will be affected. Mr. Penny stated that staff is working with the homeowners to minimize impacts. An arborist is surveying all trees along the alignment to assess potential impacts. There is a great deal of public interest in saving all the trees. Staff is working to address the public's concerns and to also let them know a sewer project is needed. This project will be advertised in April, with award of contract planned for May, construction beginning in June, and completing in December. Mr. Penny stated that staff is looking at splitting this project into two phases, because of the complexities of the project and the tight schedule. Discussion followed with regard to putting trails along the creek or enhancing existing trails in conjunction with this project. Mr. Penny noted that there is a trail in part of this area and it will be replaced as part of the project. 02 19 04 158 2) 0,' GJ,')) fd Mr. Batts, General Manager, introduced Mr. Ba Than, Senior Engineer, who stated that the Treatment Plant Electrical Cable Replacement Project, DP 7214, will replace the remainder of the existing electrical feeder cables. When the treatment plant was constructed in the early 1970's, aluminum conductor with crossed-link polyethylene insulation was used on many of the medium and high voltage cables. At that time the use of such cable was considered a technically superior application. The average service life for this type of cable, after years of experience, is now calculated to be 12 to 13 years. The existing cables have been in service at the District for 30 years. The cables have gone beyond the average life span due to relatively low power loading in the cables. The Treatment Plant Seismic Upgrade Project replaced critical sections of cable in 1999. Now this project will replace most of the remaining underground medium voltage cables. Mr. Than showed a photograph and actual sample of the medium voltage cable with new copper conductors with ethylene propylene rubber insulation. The average life of the new cables is 40 years. The scope of work includes replacement of 13,000 feet of 600-volt cable, replacement of 4,000 feet of 5-kv cable, and replacement of 36,000 feet of 12-kv cable. The initial estimated construction cost is $2.4 million and engineering costs including design and construction management are estimated to be $600,000 for a total estimated project cost of $3 million. Mr. Than noted that this project is about half of the 2004-2005 Treatment Plant Program budget of $6 million. This project will be advertised in March 2004 with award of the construction contract scheduled for the April 1,2004 Board Meeting, and completion of construction by December 31, 2004. 3) Mr. Batts, General Manager, stated that at the January 29, 2004 Board Financial Planning and Policy Workshop, the Board requested several alternative rate scenarios, and staff indicated they would come back to the Board in March with that information. Realizing that President Lucey would be gone in March, this item was expedited so that President Lucey could have the information as well. Mr. Batts asked that the Board consider four factors in the rate setting process: . The District spends more than it takes in, and reserves have declined almost every year (last year was a major exception due to savings measures implemented, curtailment of capital projects, the addition of $15 million bond financing for San Ramon projects, and the unbudgeted retention of all property tax revenue); . Property tax revenue for enterprise special districts will decline or disappear within the next year; . While the District is in a good financial position to adjust rates with a property tax revenue loss, such a loss cannot be ignored; and . The funds required number of approximately $30 million is simply the funds needed for cash flow purposes and does not include funds that may be prudent for the District to retain. Mr. Batts stated that the purpose of the presentation today is to respond to Board input, the review impacts of additional scenarios, to receive Board direction concerning the 2004-2005 Sewer Service Charge increase and proposed three year rate increase, and to update the Board on ad valorem tax revenue uses and the anticipated 10 percent loss of ad valorem tax revenue. The conceptual model of "funds required, District funds available" was used for the scenarios. In that model funds available should never go to zero and the Board may also wish to keep a positive balance. The staff approach to create a soft landing is, in effect, short- term rate stabilization. 19 G..\,,\ II,',',: .; l.»,,'- ...:c. 159 Mr. Batts briefly reviewed the District's rate history, stating that the District Sewer Service Charge was not increased from 1993-1994 until 2000- 2001. District revenue has only exceeded expenses in two of the last twelve years, 1996-1997 and 2002-2003. As a result, the District funds available have fallen from more than $65 million in 1996-1997 to a low of $35 million in 2001-2002 to $58 million this year as a result of the $15 million bond and near-term budget savings. A $24 Sewer Service Charge increase was approved by the Board for each of the last three years. In addition, the Board has increased other District rates and fees to cover actual costs. With regard to the question what should funds available be, Mr. Batts stated that the definition of funds available is the minimum amount of reserves needed to avoid annual borrowing. Funds available in the rate scenarios have been $30 to $35 million. Funds available have recently been augmented by near term budget savings and the $15 million bond financing for the San Ramon projects. Funds available are now $58 million. Mr. Batts stated that there may also be business reasons to increase reserves including the Board policy on the Operations and Maintenance (O&M) reserve, prepayment of retirement benefit to save the 8.25 percent interest charge on the $5.6 million payment, anticipated debt service, and large future capital expenditures. Over time, draw down of reserves is projected. Using Scenario 3, reserves would gradually decrease to approximately $40 million in 2011-2012. Mr. Batts stated that the following assumptions were made: . The State will take all, or part, of ad valorem tax revenue from the District; . The full extent of the loss will not be known until after the time that public notice would be required; . Staff's goal of a soft landing results in rate stabilization; . Prudent use of District reserves is preserved; and . The Board does not want to increase Sewer Service Charge rates before need is evident. Mr. Batts stated that the Governor's January ad valorem tax proposal is for a $1.3 billion shift of local government property taxes to the Education Relief Augmentation Fund (ERAF), or a decrease of about 10 percent. The District's ad valorem tax revenue is projected to be $9 million for 2004-2005. The State believes that enterprise districts should not receive tax funding. The February 18, 2004 Analyst Report again calls for a $1.3 billion shift of property tax revenue from local government, with $105 million of that coming from special districts. The Report's recommendation for enterprise special districts proposed a $400 million property tax shift, 80 percent reduction in enterprise special district tax revenue with allocation of the shift to be determined locally. Allocation would be made by the County Board of Supervisors. Mr. Batts stated that capital expenses are based on the Board Capital Improvement Budget (CIB) workshop held in October 2003. Capital spending is realistic, if not conservative. The CIB in both 2002-2003 and 2003-2004 was underspent. The CIB for 2004-2005 is budgeted at $26.6 million. Future infrastructure spending will increase. Only part of the Sewer Construction Fund can be used to augment rates. Capacity Fees, etc. must be spent for capital projects. 02 19 04 160 0 G') " Id Mr. Batts reviewed scenarios and their impact for fiscal years beyond 2004-2005. Scenario 1 assumes the District loses 10 percent of its ad valorem tax revenue, projects a 3 percent Sewer Service Charge rate increase for three years ($8, $8, $9), uses current O&M projected spending including the $1.6 million Paulsen settlement payment, could project 3 percent Sewer Service Charge rate increase beyond three years, and creates a hard landing in 2009-2010. Scenario 2 uses Scenario 1 loss of $1 million in ad valorem tax revenue and 2003 Workshop Sewer Service Charge rate assumptions, but projects no Sewer Service Charge rate increase the first year, uses current O&M projected spending, uses current Capital Improvement Plan (CIP) outlined at the October Board Workshop, and creates a hard landing in 2008-2009. Scenario 3 uses Scenario 1 loss of $1 million in ad valorem tax revenue and 2003 Workshop Sewer Service Charge rate assumptions, but projects a $4 Sewer Service Charge rate increase in the first two years, uses current O&M projected spending, uses current CIP outlined at October Board Workshop, and creates a hard landing in 2009-2010. Mr. Batts stated that a new scenario has been prepared for future ad valorem tax revenue loss. A one-year Sewer Service Charge rate increase of about $58 would be needed. Mr. Batts presented a chart showing a Sewer Service Charge rate comparison for scenarios discussed including an extended $4 rate increase, stating that the staff recommended Scenario 1 of a 3 percent rate increase each year provides rate stabilization through 2009-2010. Mr. Batts stated that these are just predictions of the model, and the Board could adjust rates at any time during the period. This comparison tries to give the Board a feeling for how quickly the reserves would be drawn down if the District loses its ad valorem tax revenue, and the rate increases needed in future years. Mr. Batts presented the staff recommendation to implement a 3 percent Sewer Service Charge rate increase annually for 2004-2005,2005-2006, and 2006-2007, to provide mailed public notice and public hearing notice beginning to develop the notices in March, to implement the current CIB based on the long-term Capital Improvement Plan, to anticipate loss of future tax revenues, and to implement a Sewer Service Charge rate adjustment in 2005-2006 based on the known property tax loss. If the recommended rate increase were implemented, the District would still be below the median for local agencies as shown on the comparison of Sewer Service Charges for local agencies. Future actions of staff would be to: . Proceed with development of District budgets based on Board input; . Update Board on State budget developments that impact the District; . Develop and mail notice to District ratepayers; . Provide rate and budget information in the spring issue of the Pipeline newsletter; and . Develop appropriate rate setting process. Mr. Batts reviewed quotes concerning the expected $14 billion State budget deficit and the fact that we have not addressed the fundamental question of what do we value in public service and how are we going to 1~1i C,1',. ¿) tr;, .Ii,' v~.'~ -.c., 161 pay for it. Mr. Batts stated that this Board has done an exceptional job of preparing the District and putting it in an excellent place to adjust to these impacts to the District and our ratepayers. Member Nejedly stated that he believes the District should wait to adjust rates until we see if the State actually takes the ad valorem tax revenue. Mr. Batts stated that is why the rate increases were put off until the future. President Lucey is right, we do not know if the recommendations in the Legislative Analyst report will be implemented. President Lucey stated that it could be a problem, but the District has sufficient funds. The Board will raise rates if the District loses ad valorem tax revenue. Member Menesini agreed that the District is in a relatively good position, but stated that it can erode rapidly with the need for investment in our infrastructure. Ms. Ann E. Farrell, Director of Engineering, stated that this year the Capital Improvement Budget is $26 million and then it drops back to approximately $23 million, but that assumes no unforeseen projects. Member Hockett thanked staff for laying out the various scenarios so clearly. Reserves are needed for capital projects. Member Hockett stated that the District would be remiss if it did not plan for the future. Mr. Batts stated that there is a real balance that must take place, and obviously that is a Board policy decision. 4) Mr. Batts, General Manager, reported that the new cogeneration unit has operated with nearly 100 percent reliability since three unexpected failures in 2002. The new cogeneration unit has produced approximately 10 percent more power than the old unit. At this time, a savings of $140,000 is projected for the treatment plant electrical budget, based on this good reliability and higher power output. Solar Turbine has reported the cause of the failures to the District in a meeting and report. Also, one of the turbine failures occurred when there was a PG&E electrical supply failure. Solar Turbine's analysis indicated two main causes for the turbine failures. The primary cause was a flaw in the quality of air/water injection nozzles. The nozzles have been replaced with ones that were manufactured properly, and the District has not experienced any failures since the modification. The secondary problem was the fuel injection system, which was designed to operate on a mixture of low BTU landfill gas and natural gas. When operating on natural gas, this injection system may cause the turbine to spin too fast when the turbine abruptly stops feeding power to the treatment plant. This may lead to a premature turbine failure. Staff is discussing modifications with Solar Turbine. The District also requested $26,790 in rebates from power bills from PG&E. In early February, PG&E staff was told that there would be no rebate and that the District's recourse was to file a claim. The account representative felt the claim should have been allowed, but PG&E's business practices have changed since they entered bankruptcy. Staff is preparing a claim at this time. The claim will include damages suffered due to the power failure, that resulted in one of the turbine failures. 5) Mr. Batts, General Manager, stated that at the November 6, 2003 Board Meeting, the Board authorized an agreement with the City of Walnut Creek for the replacement of 1,700 feet of 6-inch sewer in North Main between Civic Drive and Ygnacio Valley Road as part of the City's North Main Street Improvements Project. On February 6, 2004, the City opened OGlJ ..~ 19 04 162 b. bids, and the low bidder for the City's street work had the highest bid for the sewer work, more than twice the District engineer's estimate. Several of the other bids for the sewer work had numbers in line with the engineer's estimate. The agreement with the City allows the District to withdraw from the joint project if the bids are unfavorable to the District. Since the relocation of the sewer is necessary to accommodate the City's project that will lower the grade of the roadway by one to two feet, staff is currently fast-tracking the sewer relocation project through the bid process with advertising dates set for February 24 and March 1, and bid opening on March 15, 2004. Although the project will be built at night and under less favorable constraints than a joint project with the City, staff feels that this approach could save the District $200,000 over the current joint project option with the City. The engineer's estimate for the District Walnut Creek North Main Sewer Replacement Project, DP 5700, is $430,000. 6) Mr. Batts, General Manager, announced that the District is advertising for bids for the Acacia Force Main Project, DP 5727. This project is located in an East Bay Municipal Utility District watershed, and will install a 300-foot parallel, redundant force main in Acacia Drive and Hacienda Circle in Orinda, install bypass pump around capability, and relocate and replace existing valving. The engineer's estimate is $100,000. 7) Mr. Batts, General Manager, announced that the District is advertising the Treatment Plant Protective Coating Project, Phase 2, DP 7221. The engineer's estimate for the construction of this project is $1,180,000. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, provided a brief update on easement acquisition for the Lower Orinda Pumping Station Renovation Project. The Board authorized filing eminent domain cause of action against Mr. And Mrs. Dickerson. Action was filed in the fall. Shortly thereafter a complaint was filed against the District, Orinda Country Club, the two prior owners of the Dickerson property, the broker for the sellers, the brokerage firm, and two title companies by Mr. and Mrs. Dickerson. Mr. and Mrs. Dickerson seek declaratory relief damages and attorney's fees against the parties other than the District and Orinda Country Club. Recently those matters have been consolidated. The attorney for Mr. and Mrs. Dickerson has agreed to allow access without the District filing a formal motion to get an Order of Possession. A document has been sent to him for his signature. If it is not signed and returned fairly quickly, the District will proceed with the Order of Possession. Mr. Aim stated that the District also received an appraisal recently on the value of the easements the District is seeking. The appraisal is confusing because staff believes that the District already has rights there and is asking for expansion of the rights, so even if the District is to win its actions in its quiet title, this appraisal would be considered a minor cost. There will be a closed session with the Board in the near future to try to resolve things with Mr. and Mrs. Dickerson, who are not seeking action against the District or Orinda Country Club. There is some chance the District may be able to settle the matter with Mr. and Mrs. Dickerson out of court. President Lucey thanked Mr. AIm for the update. c. SECRETARY OF THE DISTRICT None (})C' '{ ,.. :..., :',} , hJ 19 0.':\ Ai ,: ,') '.~U- '"",-- 163 d. BOARD MEMBERS 1 ) The Board briefly discussed the Real Property Board Workshop held on February 18, 2004. President Lucey stated that he thought the workshop was helpful. Member Menesini agreed, stating that it gave the Board a good understanding of the District's property near the treatment plant. Member Boneysteele stated that after studying the aerial photograph and inspecting the property, it is apparent that the end of the Buchanan Field runway is immediately across the freeway from the Kiewit parcel with height restrictions. There are proposals for the County to relinquish any claim it has for an airport and try to get the federal government to waive reversionary rights. As soon as this ceases to be an airport, the height restrictions are of no consequence and this will be exceedingly valuable as heavy industrial property. Member Boneysteele stated that the District should be very careful of having a use of this property that would be very small compared to its long-term value. Any use should be very temporary. Member Boneysteele stated that to a lesser extent that goes for the Lagiss property as well. The ultimate usage for that is not as clear. Member Boneysteele stated that a country club does not appear to be a particularly attractive alternative. Member Boneysteele stated that the District should be very careful that any usage that the property is put to should be very temporary and easy to get out of. 2) Member Menesini announced that the February 23, 2004 Environmental Alliance Discussion Series will feature Rachael Wark, Raines, Melton & Carella, Inc. Project Engineer, discussing Water Conservation in the Bay Area. All those interested are invited to attend the discussion series at noon at the John Muir National Historic Site, 4202 Alhambra Avenue in Martinez. 3) Member Menesini reported that the Budget and Finance Committee requested and obtained a Capital Project Status Report. It is an excellent resource and is available to the full Board if they would like to receive copies. Member Hockett left the meeting at the hour of 3:17 p.m. 8. ADMINISTRATIVE ADOPT A RESOLUTION REVISING THE DISTRICT BOARD MEETING AGENDA FORMAT a. Mr. Batts, General Manager, stated that a change to the Board meeting agenda format has been prepared for the Board's consideration as requested by the Board. It is proposed that a Budqet and Finance Committee Report and Approval of Expenditures be listed together in the future under the agenda heading Reports for ease of reporting. A draft resolution has been presented for the Board's consideration. It was moved by Member Nejedly and seconded by Member Menesini, that Resolution No. 2004-017 be adopted, establishing a new order of business for District Board meetings. Motion approved on the following vote: AYES: Members: Nejedly, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Hockett 02 19 04 164 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS TO PROVIDE PROFESSIONAL ENGINEERING SERVICES FOR THE DESIGN OF THE SCRUBBER PUMPS RENOVATION PROJECT. DP 7223 Member Hockett returned to the meeting at the hour of 3:20 p.m. Mr. Batts, General Manager, stated that each of the District's two furnaces is equipped with a pollutant removal train that incorporates a wet scrubber system to absorb pollutants and wash particulate matter from the furnace gas stream. These systems are required by federal and state air regulations, and for compliance with the District's Title V Air Permit. The Scrubber Pumps Renovation Project will design and construct new scrubber pumps, and design and construct new piping between the new scrubber pumps and the wet scrubber. Planning and design for the project will begin in March 2004 and will be completed by July 2004. Following the bidding and awarding process, construction of the new scrubber system will commence in Fall 2004, followed by the second installation. The estimated planning and design cost for the project, including District staff, is $140,000. A detailed estimate of the construction cost will be completed after the project design. The total project cost is expected to be in the range of $600,000 to $800,000. It was moved by Member Menesini and seconded by Member Hockett, that the General Manager be authorized to execute a professional engineering services agreement with Carollo Engineers in the amount of $100,000 for the design of the Scrubber Pumps Renovation Project, DP 7223. There being no objection, the motion was unanimously approved. 10. APPROVAL MINUTES a. MINUTES OF JANUARY 15. 2004 It was moved by Member Nejedly and seconded by Member Menesini, that the minutes of January 15, 2004 be approved as presented. There being no objection, the motion was unanimously approved. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FEBRUARY 19. 2004 Member Boneysteele, Chair of the Budget and Finance Committee, stated that he and Member Menesini reviewed the expenditures and all questions were answered. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated February 19, 2004, including Self Insurance Check Nos. 102073- 102077, Running Expense Check Nos. 148607-148839, Sewer Construction Check Nos. 26441-26487, Payroll Manual Check Nos. 48955-48964, and Payroll Regular Check Nos. 54894-54921, be approved as recommended. There being no objection, the motion was unanimously approved. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Menesini requested an update on the Scrubber Pumps Renovation Project, DP 7223, as more information is available. i\) ç,,+'> ~j Id 19 04 165 BREAK President Lucey declared a recess at the hour of 3:25 p.m., reconvening at the hour of 3:32 p.m. with all parties present as previously designated. 14. CLOSED SESSION EXISTING LITIGATION a. The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation discussed was William Barclay and Sandra Barclay v. Mountain Cascade, Inc., Central Contra Costa Sanitary District, and Does 1 through 20, Contra Costa County Superior Court Case No. C03-00269. b. 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 was discussed. At 3:32 p.m., President Lucey declared the closed session to discuss litigation pursuant to Government Code Sections 54956.9(a) and (c) as noted above. At 3:47 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION Mr. Kenton L. Aim, Counsel for the District, announced settlement has been reached in the matter of William Barclay and Sandra Barclay v. Mountain Cascade, Inc., Contra Costa County Superior Court Case No. C03-00269. 16. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 3:48 p.m. COUNTERSIGNED: 02 19 04