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HomeMy WebLinkAboutBOARD MINUTES 03-18-04 178 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 18, 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 March 18, 2004. In the absence of President Lucey, President Pro Tem Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Boneysteele, Nejedly, Hockett ABSENT: Members: Menesini, Lucey Member Menesini was on a tour of District facilities and entered the meeting at the hour of 2:03 p.m. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . INTRODUCE LILIANA AMARGO. NEWLY HIRED BUYER Ms. Liliana Amargo, Buyer, was introduced and welcomed to the District by President Pro Tem Hockett and the Board of Directors. RECOGNIZE MICHAEL TARANTINO ON HIS PROMOTION TO PLANT OPERATOR II . President Pro Tem Hockett and the Board of Directors congratulated Mr. Michael Tarantino, Plant Operator II, on his recent promotion. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. COMMEND PAUL LOUIS. COLLECTION SYSTEM OPERATIONS MAINTENANCE SUPERVISOR. FOR HIS EXPEDIENT ACTION IN AN EMERGENCY SITUATION Mr. Charles W. Batts, General Manager, stated that on March 3, 2004, Collection System Operations (CSO) Maintenance Supervisor Paul Louis assisted a motorist whose car had crashed into a roadside drainage ditch and was upside down in the water. Mr. Louis jumped onto the car, which was about to sink, and helped the motorist get out of the vehicle and up onto the bank. Mr. Louis sustained a burn from the car's hot exhaust pipe. Emergency response personnel and the Highway Patrol soon arrived and took over. This incident, and the one last October where Field Operations Superintendent Bill Echols saved a woman's life by administering CPR, demonstrates the high caliber of people we have here at the District. They seem to specialize in being there and seeing things that need to be done and doing them. The last two days, Mr. Louis on his own time, has been working in his community on traffic safety in the local high school. 0', , ~i), '¡ cO; 18 04 179 President Pro Tem Hockett and the Board of Directors recognized and applauded CSO Maintenance Supervisor Paul Louis on his quick thinking and decisive action. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. and b., be approved as recommended and resolutions adopted as appropriate. a. Resolution No. 2004-022 was adopted, confirming publication of District Ordinance No. 229, an ordinance amending District Code Chapter 6.40, Hazardous Waste Handling and Disposal Charges for Conditionally Exempt Small Quantity Generators. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey b. Staff was directed to secure the services of an arbitrator in accordance with the disciplinary appeal procedure with regard to the appeal of discipline of Source Control Program Superintendent Tim Potter. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. BIDS AND AWARDS a. CONSIDER AUTHORIZING AWARD OF CONSTRUCTION CONTRACT FOR THE WALNUT CREEK NORTH MAIN SEWER REPLACEMENT PROJECT. DP 5700 Mr. Batts, General Manager, stated that this project was planned to be a joint project with the City of Walnut Creek. The bids received for the District's portion of the work through the City's bidding process were high. The District elected to drop out of the City's project and bid and construct the sewer work as a separate project. The bidding process was expedited due to the time constraints of the City's project. Bids were opened on Monday, March 15. Mr. Batts introduced Mr. Michael Penny, Associate Engineer, who used an aerial photograph to describe the project location. Mr. Penny stated that in July 2003, the City of Walnut Creek notified the District of its project to resurface North Main Street and lower the roadway surface by two feet. The City requested the District to accelerate future work that was planned for the area. The District has an existing 6-inch diameter clay sewer line in that area that was built in 1947. The sewer has minimum cover of four feet, and is a flat line with high maintenance. It was identified in the August 2000 Downtown Walnut Creek Facilities Plan and scheduled for replacement for 2012 in the Capital Improvement Plan. City and District staff met in July 2003 and began coordinating design efforts and development of a Joint Powers Agreement (JPA). The District Board of Directors approved the JPA in December 2003. The District provided plans and technical specifications to the City to be included in the City's bid package. In 03 18 04 180 January 2004, the City advertised the combined project and bids were opened on February 6,2004. The City work bid price was $2,251,900. Included in that was an alternative for replacing the District sewer. The District work bid price was $633,700. The District engineer's estimate was $280,000. On February 11,2004 a decision was made to bid the District project separately. The bid process was expedited. Preparation of the bid documents began immediately. On February 19, 2004, the Board was notified of the City's bid results and the intent to bid and construct the project independent of the City. On March 1 the project was advertised and bids were opened Monday of this week, March 15, 2004. The low bid from McGuire and Hester was $324,657, for a cost savings of approximately $300,000 over the bid price from the joint bid with the City. Mr. Penny presented the staff recommendation, that the Board authorize award of contract to McGuire and Hester, and authorize an additional $191,000 from the Collection System Program Contingency Account for a total of $491,000 for this project. Mr. Penny noted that the Board previously authorized $300,000 for this project when advertising the joint project was authorized. Following discussion, it was moved by Member Menesini and seconded by Member Boneysteele, that award of a construction contract in the amount of $324,657 for construction of the Walnut Creek North Main Street Sewer Replacement Project, DP 5700, be authorized to McGuire and Hester, the lowest responsible bidder, and that an additional $191,000 be authorized from the Collection System Program Contingency Account for the Walnut Creek North Main Street Sewer Replacement Project, DP 5700. There being no objection, the motion was approved with President Lucey being absent. a. 7. REPORTS GENERAL MANAGER 03 1 ) Mr. Batts, General Manager, stated that the Board has been advised that the County is having contractor difficulties with construction of the new Animal Services Facility. The District has already extended the lease through April 3, 2004 in exchange for site improvements upon the County leaving the facility and demolition of portions of the facility. The Board approved that transaction. The County is trying to complete the project, which is now about 70 percent finished. Mr. Batts recommended that the Board extend the existing lease through the calendar year, December 31, 2004. Member Nejedly stated that the County has enough problems at this time. The District is not in immediate need of the property. Member Nejedly asked that staff advise the County to take the time they need to complete the project and take the pressure off them. President Pro T em Hockett agreed. Member Menesini cautioned against extending the lease too long. The good will the District has received is valuable, but the County should recognize that the District has done this. It was moved by Member Nejedly and seconded by Member Menesini, that the lease with Contra Costa County for the Animal Services Facility be extended through December 31,2004. There being no objection, the motion was approved with President Lucey being absent. 2) Mr. Batts, General Manager, provided an update on the State budget situation, stating that the Education Relief Augmentation Fund (ERAF) shifts are no clearer now than several weeks ago. The Governor's proposal is a $1.3 billion shift from local government. Some local agencies are endorsing the Legislative Analyst's plan to take the largest amount from enterprise special districts. Of the State's $15 billion bond, $11 billion will go to payoff last year's debt. The combined debt from last year and this year is approaching $26 billion. The Governor's budget is 18 (i¡¡}I,';,',' 1i,1,",',',' Uti: b. 181 counting on additional revenue from a recovering economy, additional federal funds, Indian gaming, and contract reductions. Many of these issues are already the subject of lawsuits, and most will take time to settle through the court system. . Mr. Batts reported that on the local level, Contra Costa County is projecting an $82 million shortfall for the next fiscal year. Though the County is projecting greater revenue next year ($37 million from expanded tax base and vehicle license fees) there is projected to be a loss of up to $53 million in state funds and property tax, coupled with $62 million in higher costs, mainly in the area of salaries and benefits including $15 million in higher retirement payouts. The County Administrator has asked all departments to consider two scenarios, a 10 percent and a 20 percent budget cut over last year, and to look for programs that could be dropped from the budget. The County Board of Supervisors will consider budget impacts at a workshop on April 20, 2004. 3) Mr. Batts, General Manager, stated that last fall District staff prepared a Facilities Plan for Wastewater Utility Service to Alhambra Valley. This plan was prepared because of a proposed 15-acre subdivision in the Alhambra Valley and increasing interest from existing residents on septic tanks in extending the public sewer to the Alhambra Valley. The developer of the proposed subdivision is Security Owners Corporation, Jim and Scott Busby. The Draft Environmental Impact Report (EIR) for the 23-home subdivision, known as Alhambra Valley Estates, was distributed on March 4, 2004. District staff is reviewing the Draft EIR and will submit comments as appropriate. The public hearing for the Draft EIR will be held on April 5, 2004 at 3:30 p.m. Written comments are due by April 19, 2004. 4) Mr. Batts, General Manager, announced that a public workshop for the Pleasant Hill Road East Project was held at the Martinez City Council Chambers on Tuesday, March 16,2004. Ten residents from the project area and some city staff attended. District staff presented the project and answered questions. Mr. Batts stated that, as always, he was impressed by the way District employees represent the District in the community. 5) Mr. Batts, General Manager, announced that Human Resources Manager Cathryn Freitas will attend the National Public Employers' Labor Relations Association Conference in Washington, D.C. from March 28 to March 31, 2004. Funds were included in the 2003-2004 O&M Budget 6) Mr. Batts, General Manager, announced that Public Employees Union Local One has filed an unfair labor charge with the State Public Employment Relations Board against District management for comments made to the two provisional Plant Operator Ill's demoted last fall. A copy of the complaint and the District's response were distributed to the Board. 7) Mr. Batts, General Manager, announced that Land Surveyor Liz Charlton will be attend the 2004 California Land Surveyors Association/National Association of Land Surveyors Conference in Las Vegas, Nevada April 5 through 7, 2004. This is the primary conference in the nation for this type of work. Funds were included in the 2003-2004 O&M Budget. 8) Mr. Batts, General Manager, announced that installation of the first of the Cornell pumps began yesterday at the Orinda Crossroads Pumping Station. The original contractor, GSE, is installing these units. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, stated that as he has advised the Board before, he has been involved in representing the City of Pacific 0" GJ,',-, Ù 18 04 182 Grove in a lawsuit brought by environmentalists with regard to sanitary sewer overflows. That lawsuit was settled on March 17, 2004. Mr. Aim stated that if there is any interest on the part of the Board, he could make a report at a future meeting. The Board requested that Mr. Aim provide such a report. SECRETARY OF THE DISTRICT c. 1) Ms. Joyce E. Murphy, Secretary of the District, distributed updated District key contact lists. d. BOARD MEMBERS 1) Member Boneysteele, Chair of the Budget and Finance Committee, stated that he and Member Menesini reviewed the expenditures and found them to be satisfactory. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated March 18, 2004, including Self Insurance Check Nos. 102078-102082, Running Expense Check Nos. 148979-149205, Sewer Construction Check Nos. 26514-26564, Payroll Manual Check Nos. 48965-48966, and Payroll Regular Check Nos. 54922-54954, be approved as recommended. There being no objection, the motion was approved with President Lucey being absent. Member Menesini complimented Director of Administration Randy Musgraves and Controller Debbie Ratcliff for their report to the Budget and Finance Committee, stating that the written report was much more than adequate in terms of assessing the nature of the expenditures and it provides a permanent record that can be referred to in the future. 2) Member Menesini recognized Laboratory Superintendent Bhupinder Dhaliwal and Laboratory staff for the information on the District's National Pollutant Discharge Elimination System (NPDES) Permit Report. Member Menesini stated that many times the Board hears about a piece of very expensive equipment in the District Laboratory. Until you actually see how the equipment is used by staff, you do not have an appreciation of the work that is being done. 8. ENGINEERING a. AUTHORIZE EXECUTION OF A LEASE AGREEMENT WITH AT&T WIRELESS PCX. INC.. FOR THE INSTALLATION AND OPERATION OF A WIRELESS COMMUNICATIONS SITE AT 1268 SPRINGBROOK ROAD (CSO S!]£1 WALNUT CREEK Mr. Batts, General Manager, stated that AT&T is requesting a lease for the purpose of installing wireless telecommunications equipment within the Collection System Operations (CSO) property. The equipment consists of electrical cabinets located on the ground in a fenced area and antennas mounted on an existing PG&E transmission tower within the CSO property. Staff has negotiated a lease agreement with provisions that include rent of $15,000 per year, and a term of five years with options for three additional five-year terms and increases in rent of 15 percent with each term. Also included in the lease agreement are indemnification provisions to protect the District. Following discussion, it was moved by Member Menesini and seconded by Member Nejedly, that a Lease Agreement and Memorandum of Lease with AT&T Wireless PCX, Inc. for the installation and operation of a wireless communications site at 1268 Springbrook Road (CSO) Site in Walnut Creek be approved, that the President of the Board of Directors and the Secretary of the District be authorized to execute said Lease Agreement and Memorandum of Lease, that recording of the Memorandum of Lease O"~" G,'-,.) l. -., ,-u 4, 8 1 ..,~ U ¿~t 183 with the Contra Costa County Recorder be authorized, and that Resolution No. 2004- 023 be adopted to that effect. In response to questions from Member Boneysteele concerning ownership of between $1,000 and $10,000 of AT&T Wireless stock, Mr. Kenton L. Aim, Counsel for the District, advised that there is a threshold for Fortune 500 companies for which there is a conflict for a board member. If the ownership is less than $25,000, it would be diminimous and it would not be necessary for a board member to disqualify himself. Motion approved on the following vote: AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey b. AUTHORIZE GENERAL MANAGER TO EXECUTE PERMIT CONTRACT WITH ACME CORPORATION FOR DISCHARGE OF TREATED LANDFILL LEACHATE Mr. Batts, General Manager, stated that the discharge of treated landfill leachate from Acme Landfill in Martinez has been regulated under a permit contract that is scheduled for renewal. The term of the contract is three years. Acme's treatment facility has maintained compliance for the past three years. While the past contract authorized Acme to discharge up to 25 gallons per minute, the actual rate of discharge has ranged from 12 to 15 gallons per minute after the hazardous waste portion of the landfill was capped. Several modifications to help Acme maintain compliance and enhance the District's oversight capabilities are included in the new permit contract. Proposed modifications include increasing the continuous monitoring of the effluent to include ammonia and turbidity; providing continuous, on-line access to monitoring data in lieu of weekly reports; and requiring monthly toxicity testing on red abalone, the test species now required for the District's effluent testing. Mr. Batts introduced Mr. Chris Charrette, Acme Treatment Plant Operations Manager, who was present. Member Nejedly questioned whether permit contract renewals should come to the Board for approval, and whether the last permit contract approval came to the Board. Mr. Tim Potter, Source Control Program Superintendent, stated that the last permit contract approval did not come to the Board. Member Nejedly stated that if the District can reasonably accept the leachate, that is good. Member Nejedly stated further that he has a real issue if the contract should have come to the Board and was just changed without the Board knowing about it. Mr. Batts stated that he believes this was discussed as part of the landfill gas contract negotiations. Mr. Batts stated that he will review the minutes and position papers and get back to the Board on this issue. In response to questions from Member Menesini concerning the estimated amount of landfill gas remaining, Mr. Chris Charrette, Acme Treatment Plant Operations Manager, stated that the north parcel is closed, and the landfill gas is on the downside of its production there. Landfill gas is still being produced on the east parcel. Mr. Charrette estimated that there is still 25 to 30 years production there. Mr. Aim, Counsel for the District, noted that including toxicity testing on abalone is very impressive since if Acme is able to comply, the discharge would not be viewed as hazardous waste. It was moved by Member Nejedly and seconded by Member Menesini, that the General Manager be authorized to execute a permit contract with Acme Fill Corporation regarding the acceptance of treated landfill leachate from Acme Landfill located in O. (),,',), ~}ì 18 rfi\,,',' '>\" Ai,',' U~ 184 Martinez, California. There being no objection, the motion was approved with President Lucey being absent. 9. APPROVAL OF MINUTES a. MINUTES OF FEBRUARY 19. 2004 It was moved by Member Menesini and seconded by Member Boneysteele, that the minutes of February 19, 2004 be approved as presented. There being no objection, the motion was approved with President Lucey being absent. 10. BUDGET AND FINANCE a. AUTHORIZE THE SECRETARY OF THE DISTRICT TO PROVIDE PUBLIC NOTICE OF PROPOSED SEWER SERVICE CHARGE INCREASE Mr. Batts, General Manager, stated that the position paper includes outcomes from the January Financial Planning and Policy Board Workshop and Board Meetings where a proposed increase to the Sewer Service Charge was discussed. A draft notice has been provided for the Board's consideration. Any changes the Board may wish to make will be incorporated. Mr. Aim, Counsel for the District, stated that the draft notice is consistent with what the District has done in the past. It was moved by Member Boneysteele and seconded by Member Hockett, that the Secretary of the District be authorized to provide public notice of the proposed three- year Sewer Service Charge rate increase of $8 each year for the first two years and $9 the third year. There being no objection, the motion was approved with President Lucey being absent. b. RECEIVE THE 2003 ANNUAL REPORT OF THE DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE Mr. Batts, General Manager, stated that the Deferred Compensation Plan Advisory Committee was established by the Board of Directors to administer the District's Deferred Compensation Plan. The Committee's duties include establishing procedures, educating participants, reviewing accountability of the three program administrators (Hartford, ICMA, and National Deferred), reviewing emergency withdrawal requests, and reviewing investment performance on an annual basis. The annual report includes investment returns for each investment option offered by the three program administrators. There being no questions, President Pro Tem Hockett declared that the 2003 Annual Report of the Deferred Compensation Plan Advisory Committee was duly received. APPROVE A BOARD RESOLUTION TO ADOPT THE REVISED SECTION 457 DEFERRED COMPENSATION PLAN DOCUMENT c. Mr. Batts, General Manager, stated that the Internal Revenue Service recently issued final regulations governing Section 457 Deferred Compensation Plans. These changes are retroactive to January 1, 2002. The final regulations clarified some of the details of the changes in the law. These changes were highlighted in the position paper and included in the revised Deferred Compensation Plan Document. The Deferred Compensation Plan Advisory Committee recommends approval. It was moved by Member Menesini and seconded by Member Nejedly that Resolution No. 2004-024 be adopted, approving the revised Section 457 Deferred Compensation Plan Document. Motion approved on the following vote: 0 ' I (),""J, ' <i:) .~. ~ ~ ~""P,'~",,'~ -àl.O 185 AYES: Members: Menesini, Nejedly, Boneysteele, Hockett NOES: Members: None ABSENT: Members: Lucey d. RECEIVE JANUARY 2004 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance (O&M) for the month of January 2004, noting that expenditures were $209,000 less than budget, representing a 5.4 percent favorable variance. Year-to-date O&M expenditures were $1.3 million less than budget, representing a 5.2 percent favorable variance. Year-to-date O&M revenues of $20,653,000 were $1.1 million greater than budget, representing a 5.8 percent favorable variance. Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $13,259,000 and expenditures were $12,856,000, or $396,000 to the good. 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 January 2004 was 1.53 percent. President Pro Tem Hockett declared that the January 2004 Financial Statements were duly received. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS District Counsel was asked to provide a report on the terms of the Pacific Grove litigation settlement at a future Board Meeting. District staff will provide an update on interim modifications to the permit contract with Acme Fill Corporation for discharge of treated landfill leachate, and other landfill gas and energy issues. 13. ADJOURNMENT There being no further business to come before the Board, President Pro Tem Hockett adjourned the meeting at the hour of 3:02 p.m. to reconvene at 2:00 p.m. on March 24, 2004 in the Second Floor Conference Room, for a Capital Projects Committee Meeting/Board Workshop. President of the oard of Dire ors, Central Contra Costa Sanita District, County of Contra Costa, State of California COUNTERSIGNED: £i\ 6:,', ~"") ~ß Q)) 18 04