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HomeMy WebLinkAboutBOARD MINUTES 04-15-04 200 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 15, 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 April 15, 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 a. PLEDGE OF ALLEGIANCE Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS Mr. John Sweeten, Contra Costa County Administrator, addressed the Board, thanking the District Board and staff for the high level of collaboration and team spirited approach in dealing with the public's business. Mr. Sweeten thanked the District for the cooperation exhibited during the delays encountered in completing the Animal Services Facility. President Lucey thanked Mr. Sweeten for coming and for his comments, stating that it was not necessary but very much appreciated. President Lucey stated that he is hopeful that the District's relationship with the County will continue to blossom. 3. AWARDS AND COMMENDATIONS a. ACKNOWLEDGE SAFETY SUGGESTION OF THE YEAR AWARDS FOR 2003 FOR SUGGESTIONS SUBMITTED BY: . RICARDO SMITH, MACHINIST, PLANT OPERATIONS DIVISION. OPERATIONS DEPARTMENT . KEITH BRAUCH, ELECTRICAL TECHNICIAN, PLANT OPERATIONS DIVISION, OPERATIONS DEPARTMENT Mr. Charles W. Batts, General Manager, stated that as part of the District's effort to ensure a safe workplace, we have a program to encourage employees to submit safety suggestions. This year there was a tie for the Safety Suggestion of the Year Award. Mr. Batts introduced Ms. Kim Greer, Safety and Risk Management Administrator, who stated that as part of the District's Injury and Illness Prevention Program and in conjunction with the District Safety Committee, employees have an opportunity to submit safety suggestions. This year the District Safety Committee has selected two winners as the most significant safety suggestions for 2003. Mr. Keith Brauch, Electrical Technician, suggested installing a reset button outside the doors of the barscreen bucket in the Headworks so employees don't have to reach inside an energized cabinet to push the reset button. Mr. Brauch won the 2002 Operations Safe Person of the Year Award and is a permanent member of the District Safety Committee. President Lucey presented the Safety Suggestion of the Year Award for 2003 to Mr. Brauch and commended Mr. Brauch for his attention to safety. 04 5:#. I", (I!; I~ \Jj ":1t 201 Mr. Ricardo Smith, Machinist, suggesting installing swing gates at entry locations of the tanks to allow workers to descend into and exit the tanks safely, preventing employees have having to climb over rails to access ladders to get into the tanks for maintenance purposes. Unfortunately Mr. Smith was unable to be at the Board Meeting today. The Safety Suggestion of the Year Award for 2003 will be personally presented to Mr. Smith by the District Safety Committee Chair Chris Carpenter. 4. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. Public sewer improvements and an Offer of Dedication were accepted from John E. Weber and Charlene A. Weber, TRE, for an easement in the Town of Danville, Job 5248, Parcel 2; staff was authorized to record the easement acceptances with the Contra Costa County Recorder; and Resolution No. 2004-028 was adopted to that effect. a. Motion unanimously approved on the following vote: Hockett, Menesini, Boneysteele, Nejedly, Lucey AYES: Members: NOES: Members: ABSENT: Members: b. None None Public sewer improvements and an Offer of Dedication were accepted from Iverson Homes for an easement in the City of Lafayette, Job 6262, Parcels 1 and 2; staff was authorized to record the easement acceptances with the Contra Costa County Recorder; and Resolution No. 2004-029 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Boneysteele, Nejedly, Lucey None None Public sewer improvements and an Offer of Dedication were accepted from Bay Glen Limited Partnership, a California Limited Partnership, for an easement in the City of Lafayette, Job 5404, Parcel 2; staff was authorized to record the easement acceptances with the Contra Costa County Recorder; and Resolution No. 2004-030 was adopted to that effect. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Boneysteele, Nejedly, Lucey None None d. Leave of absence without pay was authorized for Derhyl Houck, Maintenance Technician III, Mechanical, through June 4,2004. Motion unanimously approved on the following vote: 04 15 04 202 AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Boneysteele, Nejedly, Lucey None None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 7.a.2), Reports, was taken out of order to accommodate interested persons in the audience. 7. REPORTS a. GENERAL MANAGER 2) Mr. Batts, General Manager, stated that Conco Cement Company and U.S. Development Group, Inc. have separately submitted Land Use Applications to Contra Costa County for development of the land north of the District's plant, known as the IT Baker site. The District has some concerns about the impact of the proposed developments on District operations. Mr. Batts introduced Mr. Henry Thom, Senior Engineer, who used a map to describe the location of the proposed developments, and indicated that representatives of Conco Cement Company and U.S. Development Group, Inc. are here today to present their proposed projects and answer questions of the Board. Mr. Ron Askham, Vice President of Conco Cement Company, stated that Conco Cement Company has been in business in this area since 1959. It is a privately held company. Conco has been in the process of obtaining a Land Use Permit for over a year and hopes to have a Negative Declaration in the near future. Conco plans to build a 36,000 square foot shop for equipment and a 12,000 square foot wood fabrication shop. Conco has a number of licensed vehicles and trailers within its company and plans to house about 150 pieces of equipment at this facility. Since the Land Use Application was made, that number has decreased because more of the vehicles will be housed in other locations but no change is being made in the application. This will be a maintenance facility and trucks will come in and out for maintenance. Mr. Askham stated that Conco has an easement 24-foot wide at narrowest point, and would like to put in a 24-foot wide road. To accommodate shoulders, Conco would like a 28-foot wide easement from the District. Utilities are needed at the site. Water is needed for fire protection for the building. Conco would like to take the water line from the Animal Services Facility to the Conco site and would like an easement to accommodate that as well. Mr. Askham stated that Conco would like to discuss with District staff potential impacts of crossing the District outfall and high-pressure lines. The buildings would not impact the pipes, but the access could. Member Nejedly thanked Conco and U.S. Development Group, Inc. (USD) for coming to this meeting and discussing their plans. Member Nejedly asked if Conco and USD are working together. Mr. Askham stated that Conco and USD are working together but applied separately for Land Use Permits. Mr. Askham stated that Conco and USD are working together with the District regarding the access road. Mr. Askham stated that Conco would like to use recycled water, but the Fire Department has indicated that it is not sustainable and at this time is not acceptable for fire protection. In response to questions from Member Nejedly, Mr. Askham stated that Conco included 150 vehicle trips per day in the Land Use Application. fV,^, I ;¡ ! ' Ji ',:1.: -,:' h ~j " ',' ...1'L Q.Ji 203 Member Nejedly asked if that would be 250 vehicles trips a day, and Mr. Askham stated that sounds about right. Mr. Dean Truitt, Vice President of U.S. Development Group, Inc. (USD), stated that USD appreciates the opportunity to discuss its plans. USD will be a good neighbor. USD is a specialty industrial development company working much of the time with Burlington Northern Santa Fe Railway. This site was originally developed for a rail transport yard site. About 26 acres of the site is owned by USD and about 40 acres of the site is owned by Burlington Northern Santa Fe Railway. USD made some preapplications for the site on the initial concept of a rail transport yard. That project has not materialized and that project is no longer feasible. Now the only user is a batch plant for Central Concrete. Mr. Truitt stated that as he understands it, the District is primarily concerned about traffic impacts and impacts of crossing District property. Mr. Truitt stated that USD does not know what the future of the site will be, but USD does recognize that if substantial additional truck traffic and other impacts develop, alternate access routes need to be seriously considered. That is not the case at this point. Mr. Truitt stated that at this point, the Central Concrete batch plant is the only thing that is going in. Mr. Truitt stated that USD will make every effort to coordinate truck traffic, crossing, and so on to accommodate District operations. President Lucey asked if Mr. Truitt is saying that there would be no rail crossing of the District easement. Mr. Truitt stated that USD does not have any plans for a rail crossing at this time. USD has no current plans for the rest of the property other than the batch plant at this time. Mr. Charles Abrams, of Abrams Associates Traffic Engineers and Consultant to USD and Conco, stated that his firm has been engaged to determine if there will be any traffic impacts from this project. The access from Imhoff is the only possible place that could be impacted. USD estimates 410 trips per day, 205 in and 205 out, with a peak hourly rate of 60 trips. Mr. Abrams stated that these numbers were compared with the plant on North Main in Walnut Creek to verify the numbers. Conco estimates 640 trips per day with a peak hourly rate of 70 trips. Light industrial on the site could generate another 560 trips per day and the District property on Waterbird Way could generate 260 trips per day for a total of 1,870 cars per day, or about 900 each direction with a peak hourly rate of 270 trips during the morning peak hour. Mr. Abrams stated that a traffic signal would not be needed at this interchange. A stop sign would be sufficient. There is more than enough capacity for traffic to turn onto Imhoff safely without a signal. Mr. Abrams stated that the County's facility and the Animal Services Facility will add to these numbers as well. Mr. Abrams stated that there is more than enough traffic on Imhoff to justify a signal if side street traffic is sufficient. Mr. Abrams stated that 3,000 to 4,000 trips per day from a side street would warrant a signal. Mr. Abrams stated that he looked carefully as to whether this will add significantly to traffic at Blum Road and Pacheco. Trucks will be routed to Solano Way. The majority of the traffic in and out of the site will be from Solano Way. Mr. Abrams stated that the final conclusion is that there is not a traffic capacity problem, but clearly some work needs to be done on the road so there is not a safety issue and work needs to be done at the entrance to the County yard. Member Nejedly requested copies of the traffic report and Mr. Abrams indicated that he would provide them to the Board. Member Nejedly stated that Contra Costa Topsoil has been the District's tenant for years, and that operation will be impacted. 1J1ì,. 1f1,' ~ Y) lJ.i- ; .L- 15 rti.! A¡ J~ 204 Mr. Askham stated that the proposed development has been discussed with Contra Costa Topsoil. Conco has a good working relationship with Contra Costa Topsoil. Contra Costa Topsoil will just have to change its loading pattern, but it can be worked out. Member Menesini stated that he would definitely like to see these plans in writing so he can better assess them. Member Menesini indicated that he may want to take another trip to the site. Member Menesini stated that he would also like to hear from District staff as to potential impacts on District operations. President Lucey thanked Messrs. Askham, Truitt, and Abrams for taking the time to present their proposals to the Board. At this time President Lucey reverted to the order of the agenda. 6. BIDS AND AWARDS a. CONSIDER BID RELIEF TO JMB CONSTRUCTION. INC. AND AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO RANGER PIPELINES, INC. FOR THE PLEASANT HILL RELIEF INTERCEPTOR. PHASE 5. AND HAPPY VALLEY ROAD SEWER RENOVATION PROJECT. DP 5659 AND 5692: AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE A JOINT POWERS AGREEMENT WITH THE CITY OF PLEASANT HILL FOR THE PLEASANT HILL RELIEF INTERCEPTOR. PHASE 5, DP 5659 Mr. Batts, General Manager, stated that the Pleasant Hill Relief Interceptor, Phase 5 Project and the Happy Valley Road Sewer Renovation Project were combined for bidding purposes. The City of Pleasant Hill requested that roadway construction work and the replacement of an irrigation water line also be added to the District's construction project. District staff coordinated with the City of Pleasant Hill to accomplish this. The low bidder has requested relief of its bid due to a clerical error. It is recommended that award of the construction contract be authorized to Ranger Pipelines. Mr. Batts introduced Mr. Michael Penny, Associate Engineer, who used maps to describe the location of the Pleasant Hill Relief Interceptor work, the parallel irrigation water line, and the Happy Valley Road Sewer Renovation work. Mr. Penny stated that during the final stages of design, the City of Pleasant Hill approached the District to include roadway repaving with the project. It was added and covered in an addendum. Since then City staff and Diablo Vista County Water District requested that an irrigation water line be added as well. Mr. Penny stated that there was a short period of time to make this happen, but staff was able to include the irrigation water line in the bid as well. A joint powers agreement (JPA) similar to the ones between the District and the City of Walnut Creek and the City of Martinez, is being negotiated with the City of Pleasant Hill. The City will pay for the roadway work and the County Water District will pay for the irrigation water line. Central Contra Costa Sanitary District will perform construction contract administration, inspection, survey and related services, and will be reimbursed for a portion of that cost. If the City and the County Water District fully participate, approximately $600,000 will be reimbursed to the District. The City and the County Water District will make a decision by May 19, 2004. The District's contract allows the District to delete the City's portion of the work from the project without any financial impacts. Mr. Penny presented the summary of bids received. On Wednesday, April 7, 2004, the day after the bids were opened, JMB Construction, Inc. informed the District by telephone that they would be requesting relief of bid due to a clerical error in preparing the bid. A letter to that effect was received on Friday, April 9, 2004. The letter explains that the contractor had intended to input a figure of $40,000 into their computer estimating program for Bid Item #4, Schedule D. The figure of $400,000 was incorrectly (1', , Ú ('. -' -- ",: ~:.." ..!L u) 205 inputted into the estimating program. Since this was a credit or deduct item for reduced paving requirements, the error caused their bid to be underestimated by $360,000. Mr. Penny displayed a page showing the paving..£redit bid items from each of the bids received. Upon examination of the information provided by JMB including the bid worksheet, District staff believes that a clerical error could have been made. The issues that the Board must consider are whether a mistake was made, was written notice given within five days, did the mistake make the bid materially different than intended, and was a mistake made in filling out the bid form and not an error in judgment or carelessness in inspecting the site of work or in reading the plans and specifications. The Board of Directors must make the determination as to whether to grant relief of bid. The Board has three options: 1) Grant bid relief and award the contract to Ranger Pipelines; 2) Reject bid relief and award contract to JMB Construction; or 3) Reject all bids. Staff recommends that the Board grant bid relief to JMB Construction, award the contract to Ranger Pipelines, and authorize execution of a JPA with the City of Pleasant Hill for the roadway reconstruction and irrigation water line. There being no questions, it was moved by President Lucey and seconded by Member Hockett, that bid relief be granted to JMB Construction, Inc. and that staff be directed to return JMB Construction, Inc.'s bid bond; that award of a construction contract in the amount of $4,110,061 for the Pleasant Hill Relief Interceptor, Phase 5, and Happy Valley Road Sewer Renovation Project, DP 5659 and 5692, be authorized to Ranger Pipelines, Inc., the lowest responsive and responsible bidder; and that the President of the Board of Directors and the Secretary of the District be authorized to execute a Joint Powers Agreement with the City of Pleasant Hill. There being no objection, the motion was unanimously approved. a. 7. REPORTS GENERAL MANAGER 1) Mr. Batts, General Manager, stated that little has happened in Sacramento over the last several weeks with regard to the State budget. The main focus has been on the issue of Workers' Compensation Reform. The Ortiz bill on special district reform continues to go through hearings, and appears it will go through amendments that will improve the bill. The next big event will be the Governor's May Revision Budget. This will be the first real budget proposal where numbers are attached. The Governor indicates he would like to get the budget proposal out earlier than the May 15 deadline. Mr. Batts stated that he would expect that the proposed budget will involve major political and structural issues on how legislative programs are funded. 2) The Conco Cement Company and U.S. Development Group, Inc. proposals were taken out of order earlier in the agenda. Mr. Batts, General Manager, stated that when the District started work on the Dougherty Tunnel and Trunk Sewer Project, we encountered several obstacles with the City of San Ramon, the neighborhood, and technology. With diligent work by staff and the contractors, those obstacles were overcome one by one. The project is now complete. There is approximately 300,000 gallons per day of flow in the tunnel and trunk sewer, and the single property damage claim by one homeowner has been settled. 3) Mr. Batts introduced Mr. Henry Thom, Senior Engineer, who stated that flows travel through the 10-foot diameter mile long Dougherty Tunnel and the mile long Dougherty Trunk Sewer that runs from the tunnel to the San Ramon Pumping Station. The contract for the project was awarded on July 12, 2001; Notice to Proceed was issued on August 6,2001; the trunk sewer was completed November 21,2001; and the tunnel hole-out was on April 23, 2002. The project was completed and accepted on December 5, 2002. The property damage claim was settled February 11, 2004, and (f)) 41 -'" - 15 04 206 Ir> \.1 .¡ \: Ji = '. paid by Windemere, the developer. The original project budget was $19.2 million. The construction contract bid price was $12,275,000. Change orders totaled $225,000 including the early completion bonus for completing the project before Thanksgiving. Other project costs totaled almost $4 million. Mr. Thom stated that a balance of $2.4 million was released to Windemere prior to settlement of the property damage claim. The property damage claim totaled $14,000, leaving a balance of $596,000 plus interest that is being returned to Windemere. Mr. Thom showed photographs and described various stages of project construction, noting that the tunneling portion was incredibly accurate within one foot of center. A letter from Ms. Christa Freihofner thanking the District for the maintenance of the landscaping at the San Ramon Pumping Station was received and distributed to the Board. Director of Engineering Ann Farrell announced that Mr. Thom will be retiring on April 30, 2004. The Board expressed their appreciation to Mr. Thom for his efforts on behalf of the District and indicated that he will be missed. 4) Mr. Batts, General Manager, stated that the Board may recall that Security Owners Corporation (Jim and Scott Busby) have proposed a 23 home subdivision in the Alhambra Valley called Alhambra Valley Estates. Because of the high cost of constructing a gravity sewer, the developers are proposing a temporary pumping station and forcemain to serve the proposed subdivision. A letter from Security Owners Corporation to the homeowners in the Alhambra Valley was included in the agenda packet under Correspondence. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who reported that the Draft Environmental Impact Report (EIR) for this project was released in mid March. The proposed sewering alternative in the Draft EIR for the subdivision is a temporary pumping station and forcemain. A gravity sewer through the northern part of the Alhambra Valley (connection at Gilbert Lane) is listed as an alternative for sewer service for the proposed development. At the public hearing for the Draft EIR on April 6, 2004, six residents spoke. Mr. Hal Olson representing the Alhambra Valley Homeowners Association made lengthy comments similar to those he presented to the Board, including a request for dual piping (a pipe within the pipe for the forcemain). District staff reviewed the Draft EIR and will be making comments to the County by the April 19, 2004 deadline. If the Board concurs, those comments will indicate: . That the pumping station and forcemain are considered a temporary solution with the ultimate sewering alternative being a gravity system that would serve the entire area; . That two alignments should be considered for the forcemain and that two pumping stations may be needed depending on the alignments; . That discussion of the gravity option be included so this EIR could cover any project that may come in the future for a gravity extension. Mr. Swanson stated that the letter and petition included under the correspondence item later in the agenda, went out from Security Owners to residents of the Alhambra Valley. While not specifically addressed to the District, the letter is of interest and affects the District. At the time this was sent to the Board, 38 petitions had been received in favor of a study í .. k" (L..:/ b. c. d. 207 and 3 petitions had been received against any sort of study. Another 7 petitions in favor of a study and 2 saying they do not need sewers have now been received. In response to questions from the Board, Mr. Swanson stated that in the event that the Board of Directors approved a temporary pumping station, the District would also require Security Owners Corporation to put up the cost of their share of the gravity system option. That deposit would then reduce the cost of the future gravity system. A majority of the residents who want to go ahead and are willing to pay for a sewer extension would be needed. The project could proceed as a private project with voluntary financing. Reimbursements could be established for those who do not pay now but connect in the future. Another option would be an assessment district. A majority of 60 to 70 percent in favor of an assessment district would be needed at the start. A large majority is needed to begin the assessment district process because some residents may decide ultimately against the assessment district. The letter from Security Owners Corporation was sent to approximately 235 property owners. To date about one quarter of the people who would be affected have responded. President Lucey thanked Mr. Swanson for the update. 5) Mr. Batts, General Manager, announced that the treatment plant currently has approximately 200,000 gallons of high sulfur diesel fuel stored in two on-site fuel tanks. California regulations now call for the use of low sulfur diesel fuel, and new regulations going into effect in 2005 call for ultra-low sulfur diesel fuel. In order to meet the requirements of these new regulations, staff will sell the old fuel, clean and inspect the tanks, and purchase low sulfur fuel. The District will sell the entire 200,000 gallons of fuel oil at 67.5 cents per gallon, about $135,000. After the fuel is sold, the storage tanks will be cleaned and inspected. While the work is going on, a temporary rental tank will be used to ensure a reliable fuel supply for the standby generators, auxiliary boilers, and other machinery. The Plant Operations Division has budgeted $40,000 next year to buy low or ultra- low sulfur diesel fuel. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, provided a brief overview of the Ortiz special district reform bill, and comments from other California Association of Sanitation Agencies (CASA) member agencies. Mr. Aim stated that CASA may oppose the bill since it is directed only at special districts and not other local or state governmental agencies. President Lucey asked the General Manager to provide the Board with copies of the bill and an analysis. The Board needs more information before it can take a position on whether to oppose the bill or not. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, distributed the agenda and backup material for the April 22, 2004 Board Workshop. BOARD MEMBERS 1) Member Nejedly, Chair of the Personnel Committee, distributed and reviewed notes from the April 5, 2004 Personnel Committee, at which the Personnel Committee endorsed requests to fill the vacant Engineering Assistant III (Plan Review), Maintenance Technician III, Mechanical, Shift Supervisor, and four Utility Worker positions. I~" \)",/1,;1 \ f C.ì, ...- ...-"' 15 [", A; '. v, LX! L /j ;.i" \;J "'- 208 2) Member Hockett, Chair of the Recycled Water Committee, distributed and reviewed notes from the April 8, 2004 Recycled Water Committee meeting at which discussions focused on the Contra Costa Water District general agreement extension, planned near-term connections, a potential Central Contra Costa Sanitary District (CCCSD)/East Bay Municipal Utility District (EBMUD) project, soliciting quotes for an operations and maintenance contract for the recycled water system, participating at a cost of up to $5,000 in the Bay Area Regional Water Recycling Program Master Plan update, and discussion of the Recycled Water Capital Improvement Budget and Ten-Year Plan and the need for investigating the level of renovation or replacement of recycled water facilities needed during the next ten years to ensure adequate service to existing recycled water customers. Staff was requested to prepare a letter for the Board President's signature to Contra Costa Water District indicating that the District would like to review and possibly propose modifications to the general agreement over the next six months. 3) Member Boneysteele, Chair of the Budget and Finance Committee, stated that he 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 April 15, 2004, including Self Insurance Check Nos. 102085-102086, Running Expense Check Nos. 149388-149703, Sewer Construction Check Nos. 26596-26627, Payroll Manual Check Nos. 48968-48974, and Payroll Regular Check Nos. 54955-54988, be approved as recommended. There being no objection, the motion was unanimously approved. 4) Member Menesini, the District's representative to the Contra Costa Special Districts Association (CCSDA), stated that the election of the special district representative to the Local Agency Formation Commission (LAFCO) will be held at the next CCSDA meeting. Member Menesini requested input from the Board. It was the consensus of the Board that Member Menesini cast the District's vote for Mr. Ray Tetrault, of Discovery Bay Community Services District. 5) Member Menesini announced that the April 19, 2004 Environmental Alliance Discussion Series will feature Dr. Frances Malamud-Roam discussing how climate variability affects the Bay. All those interested are invited to attend the discussion that will begin at noon at the John Muir National Historic Site, 4202 Alhambra Avenue in Martinez. 6) President Lucey stated that at the last meeting, Mr. Randy Schmidt reported on the completion of the Treatment Plant Soil Remediation Project. President Lucey commended Mr. Schmidt on the successful completion of this lengthy, costly, and complicated project. BREAK At 3:57 p.m., President Lucey declared a recess, reconvening at the hour of 4:10 p.m. with all parties present as previously designated. a. 8. REAL PROPERTY AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH DAVID DEUTSCHER COMPANY FOR PROFESSIONAL PROPERTY MANAGEMENT SERVICES Mr. Batts, General Manager, stated that the Board and staff have been working to increase income on several District properties while keeping the use compatible with District operations and future needs. Staff has investigated various alternatives and believes it best to work with a property management company. Board approval of a ~-" i " ',¡ , '-~ ~- i..- 209 contract with David Deutscher Company, a firm that already handles some District properties, is requested. The contract would run for one year with automatic renewal annually unless either party wishes to end,th~,"contract. The Board Real Estate Committee has reviewed the contract and recommends approval. Member Menesini requested more information with regard to any competitive bidding or quotes from other property management firms, and the scope or proposal from the firm as to the work they will perform. President Lucey stated that the Board Real Estate Committee reviewed this and endorses approval. The work performed by the firm will be at the direction of the Board. Member Boneysteele stated that the District is purchasing professional services. The Board must depend on the Board Real Estate Committee and the General Manager's recommendation. Member Hockett stated that the key is that the Real Estate Committee or the Board will make the decisions, not the firm. Member Nejedly stated that he reviewed this matter at the Board Real Estate Committee and supports approval of the contract, but he would not be opposed to pulling the item to allow staff to answer Member Menesini's questions. Following further discussion, it was moved by President Lucey and seconded by Member Hockett, that the General Manager be authorized to execute an agreement with David Deutscher Company for professional property management services. There being no objection, the motion was approved with Member Menesini abstaining. Mr. Batts stated that staff will provide the additional information to Member Menesini as requested. b. APPROVE GRANTING PERMANENT AND TEMPORARY EASEMENTS TO SFPP. loP.. FOR THE PURPOSE OF CONSTRUCTING, OPERATING. AND MAINTAINING A PETROLEUM PIPELINE; AMEND EXISTING SFPP, loP. EASEMENTS; APPROVE THE ASSOCIATED PURCHASE AGREEMENT Mr. Batts, General Manager, stated that Santa Fe Pacific Pipelines is requesting permanent easements and temporary construction easements in order to install a 20- inch petroleum pipeline through District property. The proposed alignment parallels an existing one and will affect portions of the property north of Imhoff Drive and the former Lagiss property. Staff has negotiated compensation for the easements based on the fair market value of the affected property. Indemnification provisions are included in the transaction. Again, this item was reviewed with the Board Real Estate Committee and it comes to the Board with their approval. It was moved by Member Nejedly and seconded by Member Hockett, that the Grant of Easements and the Grant of Temporary Easements to SFPP, loP. be approved; that the Easements Modification Agreement be approved; that recording of both documents with the Contra Costa County Recorder be authorized; that the President of the Board of Directors and the Secretary of the District be authorized to execute these documents, including the Purchase Agreement between the District and SFPP, loP.; and that Resolution Nos. 2004-031,2004-032. and 2004-033 be adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Hockett, Menesini, Boneysteele, Lucey None None If( ., n \'¡ "i' \)J (:~ ¡;:~ (;j) 210 a. b. 9. CORRESPONDENCE a. LETTER AND PETITION SENT BY SECURITY OWNERS CORPORATION TO RESIDENTS OF THE ALHAMBRA VALLEY AND LIST OF RESIDENTS SUBMITTING PETITIONS AND COMMENTS Receipt was acknowledged of the letter and petition sent by Security Owners Corporation to residents of the Alhambra Valley concerning feasibility of public sanitary sewers in Alhambra Valley. Also provided to the Board was a list of residents submitting petitions and comments. While not specifically addressed to the District, the letter was sent to the Board for their information. b. RECEIVE LETTER DATED MARCH 31.2004 FROM MR. WILLIAM B. SHEDD. P.E.. RESIDENT ENGINEER FOR THE SATE OF CALIFORNIA TOLL BRIDGE PROGRAM CONSTRUCTION FIELD OFFICE. EXPRESSING HIS APPRECIATION FOR ASSISTANCE PROVIDED BY CENTRAL CONTRA COSTA SANITARY DISTRICT DURING CONSTRUCTION OF THE BENICIA- MARTINEZ BRIDGE. THE MOCOCO ROAD OVERHEAD. AND THE MARINA VISTA/WATERFRONT ROAD INTERCHANGE Receipt was acknowledged of the letter dated March 31,2004 from Mr. William B. Shedd, P.E., Resident Engineer for the State of California Toll Bridge Program Construction Field Office, expressing his appreciation for assistance provided by Central Contra Costa Sanitary District during construction of the Benicia-Martinez Bridge, the Mococo Road Overhead, and the Marina Vista/Waterfront Road Interchange. Special thanks was expressed to the Operations Department, Laboratory Services, Source Control, and Security. 10. APPROVAL OF MINUTES MINUTES OF REGULAR MEETING OF MARCH 18,2004 MINUTES OF ADJOURNED REGULAR MEETING OF MARCH 24. 2004 It was moved by Member Hockett and seconded by Member Menesini, that the minutes of the regular meeting of March 18, 2004 and the minutes of the adjourned regular meeting of March 24, 2004, be approved as presented. There being no objection, the motion was unanimously approved. a. 11. BUDGET AND FINANCE REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF INSURANCE FUND AND APPROVE THE ALLOCATION OF 250000 TO THE FUND FROM THE 2004-2005 O&M BUDGET Mr. Batts, General Manager, stated that the Board approved the establishment of a Self Insurance Fund in 1986 to cover a portion of the District's liability and property risks. Mr. Batts introduced Mr. Randall M. Musgraves, Director of Administration, who summarized the Self Insurance Fund history of revenue, expense, and reserve balance from 1999-2000 through 2003-2004 projected and 2004-2005 budget, noting that reserves continue to drop while expenses continue to increase primarily due to increases in insurance premiums. Mr. Musgraves described the Self Insurance Fund reserves by sub-fund for the same periods. Sub-Fund A is required by Government Accounting Standards Board Statement No.1 0 (GASB-1 0) for actuarially-based risks such as general liability and automobile liability. Sub-Fund B is for GASB-10 non- actuarially-based risks including employment related and pollution related risks. Sub- Fund C is for non-GASB-10 risks such as insurance premiums and the costs of initiating claims and lawsuits against others who have damaged the District. Mr. Musgraves stated that Sub-Fund C reserves are dropping because of increasing costs in insurance premiums. That is an issue that will be presented to the Board at the January 2005 Financial Planning and Policy Board Workshop. The Sub-Fund C reserves will be consumed by then so the Board must consider whether to draw down the other A,¡,'~,',' r.: 'I \y ¡;; e:" lL eJ) 211 reserves or transfer additional funds from the Operations and Maintenance (O&M) Budget. Mr. Musgraves reviewed the history of loss payments and insurance premiums for the past five years and the proposed budget for 2004-2005, noting that outstanding claims have been settled quickly minimizing loss payments; but as discussed previously, insurance premiums continue to increase. Mr. Musgraves reviewed the insurance policies carried by the District, the carriers, premiums, limits, self insured retentions or deductibles, and coverage. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that the proposed 2004-2005 Self Insurance Fund Budget be received, and that the allocation of $250,000 be authorized from the 2004-2005 O&M Budget to the Self Insurance Fund Budget. There being no objection, the motion was unanimously approved. b. APPROVE THE 2004-2005 EQUIPMENT BUDGET FOR INCLUSION IN THE 2004-2005 DISTRICT BUDGET Mr. Batts, General Manager, stated that the 2004-2005 Equipment Budget was reviewed with the Board Capital Projects Committee at a workshop on March 24, 2004. Based on Board comments and additional research by staff, two items totaling $25,000 were deleted from the Equipment Budget presented to the Board. Those items were a bulk fluid storage delivery system and diesel emission test equipment. It was moved by Member Nejedly and seconded by Member Hockett, that the 2004- 2005 Equipment Budget be approved for inclusion in the 2004-2005 District Budget to be adopted at the June 17, 2004 Board Meeting. There being no objection, the motion was unanimously approved. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS In response to questions from Member Nejedly, the Wendt Ranch Offsite Sewer Project was briefly discussed, and it was noted that the construction work near the Siu and Richards/Brockman properties has been completed. The Traffic Impact Study prepared by Abrams Associates Traffic Engineers relating to the Conco Cement Company and U.S. Development Group, Inc. proposals discussed earlier in the agenda was provided to the Board as requested. 14. CLOSED SESSION a. REAL PROPERTY NEGOTIATIONS With respect to real property negotiations, the closed session was held pursuant to Government Code Section 54956.8. The real property that the negotiations may concern is access easements for Assessor's Parcel Number 159-250-015 and Assessor's Parcel Number 159-250-018. The District negotiators Messrs. Kenton L. Aim, Randall M. Musgraves, and Curtis W. Swanson may negotiate with representatives from Conco Cement Company and U.S. Development Group, Inc. b. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. Two potential matters are to be discussed. (," -, ,',',' .' /i,',: ! IJ l /, , j;I '-, - ~..... ~ Ç,-/) '/i .~,... 212 At 4:35 p.m., President Lucey declared the closed session to discuss real property negotiations pursuant to Government Code Section 54956.8 and anticipated litigation pursuant to Government Code Section 54956.9(b) as noted above. At 5:37 p.m., Member Nejedly excused himself and left the meeting. At 5:43 p.m., President Lucey excused himself and left the meeting. At 5:44 p.m., the closed session was concluded and the meeting reconvened in open session. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session that require reporting at this time. 16. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at the hour of 5:44 p.m. to reconvene at 2:00 p.m. on April 22, 2004 in the Multipurpose Room for a Capital Projects Committee Meeting/Board Workshop to review the Draft 2004-2005 Capital Improvement Budget and 2004 Ten-Year Capital Improvement Plan, the Draft 2004-2005 Information Technology Development Plan, and other business as needed. COUNTERSIGNED: ,1[\\ \ ! \_, -,-