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HomeMy WebLinkAboutBOARD MINUTES 09-05-02 1 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 5, 2002 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on September 5, 2002. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . INTRODUCE STEPHEN LINSLEY. NEWLY HIRED SENIOR SOURCE CONTROL INSPECTOR . INTRODUCE CRAIG MIZUTANI. NEWLY HIRED ASSOCIATE ENGINEER . RECOGNIZE AMY HERNANDEZ ON HER PROMOTION TO ENGINEERING ASSISTANT II Senior Source Control Inspector Stephen Linsley and Associate Engineer Craig Mizutani were introduced and welcomed to the District by President Menesini and the Board of Directors. Engineering Assistant II Amy Hernandez was congratulated on her recent promotion. 2. PUBLIC COMMENTS Mr. David Rolley, of the Central Contra Costa Sanitary District (CCCSD) Employees Association, addressed the Board with regard to Human Resources Item 10.a. Create and Add Two Pumping Stations Supervisor Positions and Adopt Job Classification Description, Modify Pumping Stations Operator 1/11 Job Classification Description, Delete Pumping Stations Operation III Classification When Appropriate, and Authorize Filling the Pumping Stations Supervisor Vacancies. Mr. Rolley stated that the District had Pumping Stations Supervisor positions in the past and they were eliminated and replaced by Pumping Stations Operator III positions. It was then determined that the new structure did not work out. Elimination of the Pumping Stations Operator III position is a problem in that it removes the I, II, III series in the Pumping Stations and it appears to be a take away to the Pumping Stations staff since there are I, II, III series in other areas in the District. Mr. Rolley agreed that the District should create the Pumping Stations Supervisor positions, but requested that the Pumping Stations Operator III positions be retained as well so there is a promotional ladder for Pumping Stations personnel. Mr. Rolley stated that he also wished to address the Board relative to Consent Calendar Item 4.d., Deny Grievance by Union on Behalf of Wilson Brooks, Maintenance Crew Member I, in Accordance with Arbitrator's Recommendation. Mr. Rolley stated that he wished to make it clear from the beginning that he chastises himself, Mr. Brooks, the District, and the District's doctor. Mr. Rolley stated that he hopes we can learn from this and work together in the future to resolve any issues before they become problems. Mr. 09 05 02 2 Rolley stated that if everyone had been involved earlier in this process, Mr. Brooks would not have lost two or three weeks of work. In response to questions from Member Nejedly, Director of Operations James M. Kelly and General Manager Charles W. Batts described the salary ranges and levels of the Pumping Stations personnel, the open/promotional recruitment that will be used to fill the two new supervisor positions affording current Pumping Stations Operators the opportunity to compete for promotion. It was noted that Pumping Stations Operator III incumbents would remain at the G-68 level until they are promoted, retire, or terminate from these positions at which time the vacant Pumping Stations Operator III position would be deleted and replaced with a Pumping Stations Operator 1/11 position. 3. AWARDS AND COMMENDATIONS a. ADOPT A RESOLUTION COMMENDING T ALKSICS TOASTMASTERS CLUB #6718 ON ITS 15TH ANNIVERSARY Mr. Batts, General Manager, stated that this month marks the 15th anniversary of the District's Toastmasters Club, which originated in 1987. During that time, more than 40 District employees have participated in or continue to be involved in the organization, receiving training in effective public speaking and leadership. Nearly half of those District employees have reached the first achievement level, Competent Toastmaster. As a service to the community, the Club is open to non-District employees. Currently there are 27 members, 16 of whom are District employees. Mr. Batts introduced Talksics Toastmasters Club President Karalee Beatie and Education Vice President Russ Leavitt. It was moved by Member Hockett and seconded by Member Lucey, that Resolution No. 2002-066 be adopted, commending Talksics Toastmasters Club #6718 on its 15th Anniversary. The motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None Ms. Karalee Beatie thanked the Board of Directors for this honor and invited everyone to attend the Talksics Toastmasters anniversary meeting on September 25, 2002, noon to 1 :00 p.m. in the District Board Room. Member Lucey stated that he is a Board Member of STAND, formerly Battered Women's Alternative. One night a week Toastmasters comes to the STAND shelter to work with the women on public speaking and self confidence. Toastmasters is a phenomenal organization that has made a significant difference in the lives of these women. b. RECEIVE 2002 CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) AWARD FOR TECHNOLOGICAL ACHIEVEMENT FOR THE DISTRICT'S SEISMIC PROTECTION SYSTEM FOR SECONDARY CLARIFIERS Mr. Batts, General Manager, stated that at the recent California Association of Sanitation Agencies (CASA) conference, the District received the 2002 Technological Achievement Award for the Seismic Protection System for Secondary Clarifier Feedwells. Board President Menesini and Senior Engineer Ba Than accepted this award on behalf of the District. A presentation on the project will be made at the January 2003 CASA Conference. Mr. Batts introduced Mr. Ba Than, Senior Engineer, who presented the 2002 CASA Award for Technological Achievement to the Board of Directors. On behalf of the Board, President Menesini congratulated Mr. Than and District staff on this outstanding achievement. 09 05 3 4. CONSENT CALENDAR Member Nejedly requested that Item a. be removed from the Consent Calendar for discussion. It was moved by Member Hockett and seconded by Member Boneysteele, that Consent Calendar Items b. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. Resolution No. 2002-067 was adopted, establishing the Sewer Construction Fund appropriations limit in the amount of $451,432,838 for the 2002- 2003 fiscal year, in accordance with Article XIII B of the California Constitution, and selecting the change in the local assessment roll due to local nonresidential construction, for use in computing the appropriations limit. b. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Nejedly, Lucey, Menesini None None Formation of a contractual assessment district consisting of eight properties on EI Pintado Road in Danville was authorized; Resolution No. 2002-068, a resolution of intention to create EI Pintado Road Contractual Assessment (CAD) District No. 2002-8 for the purpose of installing sewer improvements, was adopted; Resolution No. 2002-069 was adopted, approving the boundary of the assessment district; and Resolution No. 2002-070 was adopted, requesting consent from the Town of Danville for CCCSD to conduct proceedings for the EI Pintado Road CAD No. 2002-8. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Nejedly, Lucey, Menesini None None The grievance by the Union on behalf of Wilson Brooks, Maintenance Crew Member I, was denied and dismissed in accordance with the arbitrator's recommendation, as the final action of the District. d. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Nejedly, Lucey, Menesini None None The attendance of two Collection System Operations Division employees, Maintenance Supervisor Paul Louis and Maintenance Crew Leader Dennis Almond, was authorized at the California Water Environment Association (CWEA) Northern Regional Training Conference in Lake Tahoe, Nevada, September 8-10, 2002, at a cost of $850 each. e. 09 05 02 4 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Boneysteele, Nejedly, Lucey, Menesini None None With regard to Consent Calendar Item 4.a., Member Nejedly requested information on the cost of securing the patent for the Seismic Protection System for Clarifier Feedwells, and any staff time or consultant costs involved. Member Nejedly questioned whether the District should recover those costs. Mr. Kenton L. Aim, Counsel for the District, stated that the intent of the District in going through the patent process was to protect the process so that some commercial entity could not take it and make money on it, but that is a Board level policy that the Board can change. Mr. Aim stated that there was some cost involved in obtaining the patent, but was unable to give the Board an accurate estimate of that cost at this time. Mr. Batts stated that the idea was other public agencies would benefit from the public work the District has done. Member Boneysteele stated that there is a precedent for this. The overflow device was developed by District staff, patented by the District, and put into the public domain. The overflow device is widely used at great public benefit. Member Boneysteele stated that the District is a public agency created to provide service to the public. The District saw a need and found a solution. Member Boneysteele stated that he believes that $1,000 is an appropriate amount to charge other agencies to cover administrative costs. It was moved by Member Boneysteele that the General Manager be authorized to execute a licensing agreement granting Fairfield-Suisun Sewer District rights to use patented systems entitled Seismic Protection System for a Clarifier Feedwell in a Wastewater Treatment System. Further discussion followed in which Member Lucey stated that it appears the Board is being asked to make a policy decision on the Consent Calendar. Member Lucey requested that this item be taken off the Consent Calendar, that staff provide the information requested by Member Nejedly, and that the item be brought back for Board consideration at the next Board Meeting so the Board can consider the policy decision. Member Hockett stated that she would like further discussion on this and consideration of the options including the history and whether this is an appropriate precedent for the Board to set. Member Hockett stated further that she supports allowing sanitary districts to utilize this patented system, but that she would like to make a decision with full knowledge. Mr. Batts stated that staff will obtain the information requested by the Board and this matter will be calendared for Board consideration at the next Board Meeting. Member Boneysteele withdrew his motion with the understanding that the matter will be brought back for Board consideration at the next Board Meeting. President Menesini stated that he supports what the Engineering Department is doing and particularly their creativity. The District Board has taken on the responsibility for the health of the community and this patented system is important to that responsibility. O. ..,'G} ~.... ,¡ ¡:¡ ~, :~' V Ç;-,)' 5. HEARINGS a. CONDUCT A HEARING TO CONSIDERTHEAPPEAL OF MR. MOHAMMAD ASLAM OF THE DISTRICT STAFF DECISION TO ISSUE A PERMIT FOR A PUBLIC SEWER MAIN EXTENSION TO SERVE THE PROPERTY AT 25 CRESTVIEW COURT. ORINDA. CALIFORNIA Member Boneysteele stated that before this matter is considered, it would be appropriate to define the name of the street. It appears both as Crestview Court and Crest View Court. Member Boneysteele requested that staff check with Contra Costa County to determine the appropriate name. Mr. Batts, General Manager, stated that staff will check with the County with regard to the correct street name. Mr. Batts stated that the septic tank for the home of Mr. and Mrs. Paul Barrett at 25 Crestview Court in Orinda has failed. An extension of the public sewer main in easements on private property is needed to serve this home and other homes on Crestview Court. Staff has been working with the homeowners and their neighbors. Mr. Mohammad Aslam has contacted the District to withdraw his request for appeal of staff decision to issue a sewer permit for a sewer to serve the Barrett's home as he believes that the issues have been satisfactorily resolved. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that Mr. Barrett and Mr. Aslam have reached agreement on how the driveway will be reconstructed. Mr. Swanson distributed copies of the email from Mr. Aslam withdrawing his appeal. Member Lucey urged staff to expedite this, stating that he visited the site yesterday. The Barrett's septic tank has failed and must be pumped every week or two. Mr. Batts stated that there are some items that Mr. Barrett must submit and then staff will issue the permit. Mr. Swanson stated that the parties appreciate the Board scheduling this hearing and he believes that is what prompted them to reach agreement. Mr. Barrett has agreed to provide $3,250 for payment for the overlay to the driveway after installation of the sewer. Mr. Swanson stated that Mr. Aslam has asked that his letter responding to the August 12, 2002 letter from Mr. David J. Carter, 23 Crestview Court, Orinda, be distributed to the Board. Copies of that letter were distributed. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 7. BIDS AND AWARDS a. APPROVE CONTRACT FOR HOUSEHOLD HAZARDOUS WASTE SERVICES PROVIDED BY PHILIP TRANSPORTATION & REMEDIATION. INC. Mr. Batts, General Manager, stated that the District currently has a contract with Philip Services Corporation to transport and dispose of household hazardous waste collected at the Household Hazardous Waste Collection Facility (HHWCF). This contract expires on September 20, 2002. Earlier this year staff began a procurement process to seek proposals and select a contractor to provide temporary staffing and disposal services for a three-year period through September 2005. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that Ms. Elaine Jacobs, HHW Supervisor, is at a HHW conference this week and unable to attend this Board Meeting. Ms. Jacobs was the lead staff person through this process. Mr. Swanson stated that potential contractors were identified, a Request for Proposals (RFP) was prepared and sent to 16 companies. Seven companies participated in the walk through of the HHWCF and six proposals were received, ranging from $493,000 to $913,000. The proposals were evaluated on technical factors as well as costs. The top four 09 05 5 01 0.; '~ 6 companies, Philip Transportation & Remediation, Inc. (formerly Philip Services Corporation), ROMIC, Safety-Kleen, and MSE Environmental, were interviewed. Based on evaluation of the proposals and the interviews, staff recommends that Philip Transportation & Remediation, Inc. be selected. This recommendation was reviewed with the Board Household Hazardous Waste Committee who endorsed the recommendation. A contract has been negotiated with Philip Transportation & Remediation, Inc. The estimated cost of services is $1,480,000 for the three-year term. This represents approximately $200,000 per year savings over the previous agreement. Board approval is recommended. Discussion followed with regard to temporary staffing levels, service levels, and mobile collection events. Mr. Swanson noted that the proposed contract provides for up to three mobile collection events for the coming year. In the future the District can change the number of mobile collection events or assign them to some other entity such as the Central Contra Costa Solid Waste Authority or City of San Ramon. It was moved by Member Hockett and seconded by Member Nejedly, that a Household Hazardous Waste Service Agreement with Philip Transportation & Remediation, Inc., be approved effective September 2000 through September 2005 with an option to extend the contract for one year to September 2006. There being no objection, the motion was unanimously approved. 8. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who distributed and reviewed San Ramon Projects Report No.3 dated September 5, 2002. Mr. Brennan reported that Dublin San Ramon Services District (DSRSD) allowed the District to put in an emergency bypass to the DSRSD system. That has been installed and was used when the District's contractor inadvertently drilled into a pipe. Member Nejedly asked if the contractor would pay for the costs. Mr. Brennan indicated that the pipe was not correctly marked and he did not think that would be reasonable. Member Nejedly asked that staff reconsider that since it is not unusual for actual pipeline locations to differ from drawings. 2) Mr. Batts, General Manager, stated that President Menesini, Member Boneysteele and District staff visited the Bulldog Gas and Power facility. Mr. Batts stated that from his observation, it was a clean and efficiently run facility. After the site visit, a follow up meeting between Bulldog and District staff was held to further discuss operating costs. Mr. Nick Farros, owner and manager of Bulldog Gas and Power, addressed the Board, stating that he has had dealings with the District in the past and he tries to do things the right way. Mr. Farros stated that he hopes that an equitable agreement for both parties can be reached and that the relationship between Bulldog Gas and Power and the District can continue. Mr. Farros reviewed his background and experience, indicating that he worked for Acme Fill for eight years during which time he brought Acme Fill into compliance, closed the north parcel, obtained certification by the Department of Toxic Substance Control, and negotiated with the District on a leachate treatment facility and landfill gas facility. Mr. Farros stated that he is proud of the changes being made, and he welcomed the Board and staff to come out to the landfill gas facility to see what is being done. Mr. Batts introduced Mr. Doug Craig, Plant Operations Division Manager, to provide an overview of the counter proposal for renewal of the landfill gas contract for the Board's consideration. Mr. Craig recapped the Bulldog Gas and Power Proposal No.1, the District Proposal No.1, and the Bulldog Gas 09 â ¡\ L::-. :C..~ Uv , " ¡:;--,i 7 and Power Proposal No.2 previously presented to the Board. Mr. Craig reviewed the District Counter Proposal No.2 which is presented today for the Board's consideration. The District Counter Proposal No.2 calls for a 30 percent landfill gas discount over the natural gas price for $0.00 to $2.00 per decatherm, a 40 percent discount for $2.00 to $4.00 per decatherm, and a 50 percent discount for $4.00 and up for a three-year contract with no floor, no ceiling, and no guaranteed usage. Mr. Craig presented a cost comparison of the proposals based on using 175,000 decatherms per year at next year's pre-purchased natural gas cost of $3.94 per decatherm. For comparison purposes, the cost for using natural gas only would be $690,000 per year; the cost for Bulldog Proposal No.1 would be $640,000; the cost for District Proposal No.1 would be $345,000; the cost for Bulldog Proposal No.2 would be $483,000; and the cost for the District Proposal No.2, the proposal being recommended for Board consideration today, would be $449,000. In summary, Mr. Craig stated that the proposal presented for Board consideration today would save the District approximately $241,000 per year over the price of natural gas, or about a 35 percent discount. Member Nejedly stated that he ran a landfill gas facility for two years. When he first came on the District Board of Directors, he was concerned that the cost to the District for using landfill gas was high because of the contract price coupled with the cost to clean the landfill gas. Member Nejedly stated that he wants to do the right thing by using the landfill gas, but he also wants to be accountable to the District ratepayers. It seems that we are getting closer to an equitable agreement for all the parties involved. Mr. Farros agreed that we are getting closer. Significant amounts have been invested in capital improvements to improve reliability. Mr. Farros stated that the flare is capable of handling all of the landfill gas produced, but he does not want to flare the landfill gas. The District can get the landfill gas at a discount, and Bulldog can put aside funds for major capital improvements and operations. Members Nejedly and Hockett expressed support for District Proposal No. 2 as recommended by staff. Member Lucey stated that he supported the proposal for a 50 percent discount with no floor and no ceiling; but based on the comments of Member Nejedly and Mr. Farros, he will go along with the District's latest counter proposal. Member Lucey stated further that the Board and District must be responsible to its ratepayers. At the September 19, 2002 Board Meeting, a position paper will be presented for the Board's consideration. 3) Mr. Batts, General Manager, announced that the District will be issuing a Request for Proposals (RFP) to qualified vendors for a District-wide Document Imaging and Management System. The RFP has targeted three imaging solutions that have been selected by a District task force. Vendors will have four weeks to respond with their proposal. Proposals will be reviewed by the District's Document Imaging Task Force and Management Information Systems (MIS) staff. The recommended final selection will be presented to the Board of Directors for approval. Part of the document imaging software is a sophisticated search and retrieval capability that will allow staff to quickly recover selected documents and maps. In addition, the system will enhance the records retention process providing protection and archiving of irreplaceable records, and it may reduce in-house storage space requirements. The Document Imaging and Management System project will be implemented in several phases. The first phases will include 09 U5 0',,","..' (;,""""", ::i~ 8 (J9 the Permit Counter and the District records maintained by the Office of the Secretary of the District. These two areas are considered central points which receive over an estimated 90 percent of the District's documentation for storage and retrieval. Discussion followed with regard to the scope, costs, and labor requirements of the project. 4) Mr. Batts, General Manager, reported that at the end of September 2002, the Water Environment Federation Technical Conference will be held on Chicago, Illinois. The following staff will attend: General Manager Charles Batts, Director of Operations James Kelly, Plant Operations Division Manager Doug Craig, Laboratory Superintendent Bhupinder Dhaliwal, Capital Projects Division Manager Bill Brennan, Community Affairs Representative Jackie Zayac, Community Affairs Manager Harriette Heibel, and Associate Engineer Tom Godsey or Principal Engineer Tad Pilecki. The Bay Area Clean Water Agencies (BACWA) will pay for one attendee, and two managers will be using their management allowance to underwrite the cost of attender, and three attendees will be presenting papers. 5) Mr. Batts, General Manager, announced that on September 18, 2002 the Institute for International Education will be bringing a group of utility managers from Egypt to the District to learn about our organization, the O&M and capital budgeting process, and how regional sanitary agencies function. They also have an interest in the District's pretreatment and recycled water programs. If time allows, a tour of the District's ultraviolet (UV) disinfection facility will be provided. 6) Mr. Batts, General Manager, stated that because this is the second year of the Two-Year Capital Improvement Budget and significant staff work is involved in preparing the next Two-Year Budget, staff wishes to begin to engage the Board in discussions of capital project needs prior to the January Financial Workshop. A Capital Planning Board Workshop is planned for late October or early November to discuss areas for priority funding, including the large sewer corrosion study and recommended projects, an update on the small sewer TV work, discussion of the Contractual Assessment District (CAD) program and whether it should be continued when it sunsets in June 2003, and discussion of the findings of the examination of the leaking Aeration Tanks and recommended solutions. Member Lucey suggested that the workshop be held in November rather than October, following the District Board election to ensure that the Board Members who will be overseeing the Two-Year Capital Improvement Budget are involved. 7) Mr. Batts, General Manager, reported on Pollution Prevention Week activities. The Concord Main Post Office will be holding an information event on Wednesday, September 18, from 10:00 a.m. to 2:00 p.m. The District will have a booth at the Post Office providing information on our Household Hazardous Waste Collection Facility and Mercury Thermometer Exchange Program. The Concord Post Office regularly holds events for pollution prevention week and earth day, and the District has staffed informational booths at many of these events in the past. On Thursday, September 1 9, the Danville Chamber of Commerce will hold its annual Business Showcase and Culinary Event hosted by The Shops at Blackhawk. On Thursday, September 26, the Walnut Creek Chamber of Commerce will hold its semi-annual Business Trade Faire at Scott's in Walnut Creek. The District will staff booths at both of these events, again promoting the Household Hazardous Waste Collection Facility and Mercury Awareness Program. ~. ¡j ~.rc..?. V C-,y~ ;¿.. f'i) \};'i 8) 9) 10) 11 ) b. Mr. Batts, General Manager, reported that there was a break in at the Collection System Operations Division (CSOD) Yard over Labor Day weekend. The District van used to support confined space entries by CSOD was broken into. While the van was not damaged, much of the equipment was stolen. The estimated replacement cost is approximately $15,000. The Walnut Creek Police Department responded Wednesday morning after the loss was discovered. Entry was made from the parking lot of an adjoining office building, up a ten-foot vertical wall, and through a chain link fence which was cut. Replacement equipment is being expedited and the truck is now parked in a more secure location. The damaged fence has been repaired. Mr. Batts, General Manager, announced that there was a residential sewer overflow at Webb Lane in Lafayette over the weekend. Unfortunately this was the third overflow in three years at this location. Additionally, settlement with the owner for the last overflow was just being completed. The District will settle the claim as soon as possible. The home is scheduled to have an overflow device installed mid-September. The Collection System Operations Division is looking at the line and causes. It appears that a broken water main may have washed debris into the sewer line. Mr. Batts, General Manager, announced that the District received a Certificate of Recognition from the State of California for our leadership efforts in energy conservation under the "Flex Your Power" Program. Mr. Batts, General Manager, announced that the Pollution Prevention Awards will be presented at the September 19, 2002 Board Meeting. There will be a reception for Pollution Prevention Award winners at 1 :30 p.m. just prior to the Board Meeting. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, stated that he has accepted a position with the firm of Meyers, Nave, Riback, Silver and Wilson and will be leaving the firm of Sellar, Hazard, McNeely, Aim & Manning effective October 1, 2002. Mr. Aim stated that he intends to move his practice to that firm and seeks to retain his clients. Mr. Aim stated that the Meyers, Nave, Riback, Silver and Wilson firm has approximately 50 attorneys and two offices, one in San Leandro and one in downtown Oakland. The firm specializes in public agency work and will provide substantial depth and expertise in a variety of specialized areas. Mr. AIm stated that if it is acceptable to the Board, he would ask that his existing contract be assigned to the new firm. The Sellar, Hazard, McNeely, Aim & Manning firm does not intend to continue its practice in the public agency area and does not intend to seek the District as a client. It was the consensus of the Board, that a position paper be placed on the next Board Meeting agenda, assigning the contract for legal services with Mr. Aim to the firm of Meyers, Nave, Riback, Silver and Wilson. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) President Menesini, chair of the Outreach Committee, reported that he and Member Nejedly met with staff on August 22, 2002. Minutes from that meeting were distributed. Major topics of discussion included the annual Pollution Prevention Awards, Source Control information guidelines, 09 05 9 0..'..'. ~þ ." Ád 10 preparation of a District annual report, the Sewer Squad Program, overflow device outreach, information welcoming new District customers, a brochure for small businesses on how to dispose of hazardous waste, and the Dental Mercury Source Reduction Program. 2) President Menesini announced that on September 16, 2002, the Environmental Alliance Discussion Series will feature Ms. Mary Hanzel, CPA and Sustainability Manager for Carollo Engineers, speaking on the topic Biomimicry - Learning from Nature's Consummate Engineers. BREAK At 4: 10 p.m., President Menesini declared a recess, reconvening at the hour of 4:23 p.m. with all parties present as previously designed. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A REVISION TO THE CONSULTING SERVICES AGREEMENT WITH BRIAN KANGAS FOULK FOR SURVEY SERVICES Mr. Batts, General Manager, stated that a contract was authorized with Brian Kangas Foulk to provide survey support services for a number of separate projects. Staff did not watch this contract closely enough to pick up that the total expenditures for the various projects to Brian Kangas Foulk had run over the 15 percent staff authorization limit. The work has been done and it was authorized by staff but not included in the original contract amount. It was moved by Member Hockett and seconded by Member Boneysteele, that the General Manager be authorized to execute a revision to the consulting services agreement with Brian Kangas Foulk for $21,500, increasing the total agreement amount to $131,500. The motion was approved with Member Nejedly voting no. b. ADOPT A RESOLUTION SETTING A MINIMUM INTEREST RATE FOR THE CONTRACTUAL ASSESSMENT DISTRICT PROGRAM Mr. Batts, General Manager, introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that for the past five years, the Contractual Assessment District (CAD) interest rate has been set based on the Local Agency Investment Fund (LAIF) interest rate plus 1 percent. From 1997 to 2001 interest rates were fairly stable and CAD interest rates ranged from 5.64 percent to 7.5 percent. September 2001 was the last time the Board approved and set a CAD interest rate, and that was 5.64 percent. Since that time interest rates have fallen significantly. The LAIF interest rate has dropped such that if a CAD were approved today, the interest rate would be 3.7 percent. Staff feels that this is inappropriate and proposes that a minimum interest rate of 6 percent be established. When CAD projects are approved by the Board, the interest rate would then be the greater of either the minimum interest rate of 6 percent or the interest rate formula of 1 percent over the average District temporary investment interest rate. It was moved by Member Nejedly and seconded by Member Hockett, that Resolution No. 2002-071 be adopted, setting a minimum interest rate of six percent (6%) for the District CAD Program. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini None None 09 05 rr~ G,'b," V 4:., 11 c. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH ALLISON SIERRA. INC.. TO REPLACE 760 FEET OF SEWER PIPE USING THE INNEREAM@ TECHNOLOGY FOR THE VIA DEL SOL TRUNK SEWER REPLACEMENT PROJECT. DP X5516 Mr. Batts, General Manager, stated that the Via Del Sol Trunk Sewer Replacement Project will replace a damaged trunk sewer in Walnut Creek. Site conditions are complicated because of restricted access and because of a parallel trunk sewer in the same trench. At the last Board Meeting, staff reported on the proposal to replace the trunk sewer with a demonstration contract using a new reaming method of pipe replacement. Following discussion of sole source and field testing of new technology to ascertain its acceptability for District purposes, it was moved by Member Nejedly and seconded by Member Hockett, that award of a construction contract in the amount of $135,000 be authorized to Allison Sierra, Inc. for completion of the Via Del Sol Trunk Sewer Replacement Project, DP X5516, using the Inneream@ technology; and that Resolution No. 2002-072 be adopted, approving an Inneream@ Sewer Renovation Demonstration Project as a field test or experiment. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Hockett, Lucey, Boneysteele, Menesini None None 10. HUMAN RESOURCES a. CREATE AND ADD TWO PUMPING STATIONS SUPERVISOR POSITIONS IS-71. $5.190-$6.279). AND ADOPT THE JOB CLASSIFICATION DESCRIPTION: MODIFY THE PUMPING STATIONS OPERATOR I1I1 JOB CLASSIFICATION DESCRIPTION: DELETE THE PUMPING STATIONS OPERATOR III CLASSIFICATION WHEN APPROPRIATE: AND AUTHORIZE FILLING THE PUMPING STATIONS SUPERVISOR VACANCIES It was moved by Member Nejedly and seconded by Member Hockett, that the addition of two Pumping Stations Supervisor (S- 71) positions be authorized; that the applicable job classification description be adopted; that two Pumping Stations Operator 1/11 (G-59/G-64) positions be added; that the applicable job classification description be modified; that two Pumping Stations Operator III (G-68) positions be eliminated when appropriate; and that filling the Pumping Stations Supervisor vacancies be authorized. There being no objection, the motion was unanimously approved. 11. CORRESPONDENCE a. RECEIVE LETTER DATED AUGUST 26. 2002 FROM FORMER CENTRAL CONTRA COSTA SANITARY DISTRICT EMPLOYEE MR. JAY MCCOY REGARDING THE RECENT LATERAL CONNECTION ARTICLES ON RECYCLED WATER. GEOGRAPHIC DATA INTEGRATION. AND THE ENGINEERING SUPPORT GROUP Receipt was noted of the letter dated August 26, 2002 from former Central Contra Costa Sanitary District employee Mr. Jay McCoy regarding the recent Lateral Connection articles on recycled water, geographic data integration, and the Engineering Support Group. President Menesini thanked Mr. McCoy for writing this very complimentary letter to the District and for attending the District Board Meeting. b. RECEIVE AND PROVIDE DIRECTION WITH REGARD TO CALIFORNIA SPECIAL DISTRICTS ASSOCIATION BOARD ELECTIONS Receipt of the California Special Districts Association (CSDA) ballot for Board Elections was noted. Following discussion, it was the consensus of the Board that the District's 09 05 () ~~ 12 ballot be cast for Ms. Joan Gallegos, Kensington Police Protection and Community Services District, for Director for CSDA Region Three, Seat C. 12. APPROVAL OF MINUTES a. MINUTES OF AUGUST 1. 2002 b. MINUTES OF AUGUST 15. 2002 It was moved by Member Boneysteele and seconded by Member Hockett, that the minutes of August 1, 2002 and the minutes of August 15, 2002, be approved as presented. There being no objection, the motion was unanimously approved. 13. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED SEPTEMBER 5. 2002 Member Boneysteele, chair of the Budget and Finance Committee, stated that he and Member Hockett reviewed the expenditures and found them to be satisfactory. At Member Boneysteele's request, Controller Debbie Ratcliff stated that the Budget and Finance Committee meeting at which expenditures are reviewed has always been a publicly noticed meeting; but in the future, a formal agenda will be prepared and distributed. The agenda will include standing agenda items including opportunity for public comments, review of expenditures and claims management, and it will include additional items as appropriate from time to time. It was moved by Member Boneysteele and seconded by Member Hockett, that the Expenditure List dated September 5, 2002, including Self Insurance Check Nos. 101923- 101927, Running Expense Check Nos. 140164-140490, and Sewer Construction Check Nos. 24821-24886, be approved as recommended. There being no objection, the motion was unanimously approved. 14. BUDGET AND FINANCE a. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Mr. Batts, General Manager, stated that the District's Investment Policy must be reviewed and approved annually by the Board of Directors in accordance with the District Investment Policy and California Government Code Section 53646. District Counsel has reviewed legislative actions in the past year and determined that there were none that would have necessitated any change to the District Investment Policy, and no changes were made. It was moved by Member Hockett and seconded by Member Boneysteele, that the District's Investment Policy be approved with no modification. There being no objection, the motion was unanimously approved. b. RECEIVE ADJUSTED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 2002 Ms. Deborah Ratcliff, Controller, presented the Central Contra Costa Sanitary District financial results for the year ended June 2002. Ms. Ratcliff stated that in August 2002 she presented the preliminary financial results to the Board. The books were held open to allow all invoices to be booked and adjustments to be made. That has now been completed. Ms. Ratcliff provided a report on operations and maintenance revenues and expenses for the fiscal year ended June 30, 2002. Actual O&M revenues of $40,395,000 were $597,000 less than budget, representing a 1.5 percent unfavorable variance. Actual O&M expenditures of $37,594,000 were $2,615,000 less than budget, representing a 6.5 percent favorable variance. As a result, the O&M fund balance will be increased by $2,801,000 bringing the O&M Fund balance to $6,172,000 at June 30, 2002. 09 0""5',",'"' "', " <L' (',',",','" , ,'j ", :y 13 Ms. Ratcliff reported on Sewer Construction Fund (SCF) revenues and expenditures for the fiscal year ended June 30, 2002. Ms. Ratcliff noted that her presentation will focus on the 2001-2002 budget excluding the $10,922,000 of reimbursed costs for the Dougherty Tunnel and Trunk Sewer Project. Actual SCF revenues of $16,992,000 were $3,565,000 less than budget. Actual expenditures of $21,742,000 were $6,836,000 greater than budget. SCF revenues minus expenditures is $4,750,000, bringing the Sewer Construction Fund balance down to $33,327,000 at June 30, 2002, plus the 2002 bond financing of $15,121,000 which will be spent in the next 18 months, for total Sewer Construction Funds available of $48,448,000. Ms. Ratcliff stated that the approximate total funds required to meet cash flow each month is $32 million. The O&M Fund balance of $6.1 million plus the Sewer Construction Fund balance of $33.3 million plus 2002 bond financing funds of $15.1 million brings the total funds available at June 30, 2002 to $54.5 million. President Menesini thanked Ms. Ratcliff for her report and declared that the Adjusted Financial Statements for Fiscal Year ended June 2002 were duly received. 2001-2002 CAPITAL IMPROVEMENT BUDGET YEAR END STATUS REPORT c. Ms. Ann E. Farrell, Director of Engineering, presented the 2001-2002 Capital Improvement Budget (CIB) Year End Status Report. Ms. Farrell presented the expenditure summary by program, noting that every program was underspent except the General Improvements Program. This was in part a conscious effort to reduce expenditures where possible to accommodate the acceleration of the San Ramon projects as agreed in the settlement agreement with the City of San Ramon. Some projects were completed early ($4.0 million), some projects were completed under budget ($1.5 million), and some projects were deferred intentionally as noted above ($2.5 million), for a total of $8.0 million under spent; and the Treatment Plant Equipment Replacement Project was overspent by $1.0 million for a net total variance of $7.0 million under planned expenditures. Project expenditures in the Treatment Plant Program of $4.8 million totaled $1.5 million less than budget. Project expenditures in the Collection System Program without the Dougherty Tunnel and Trunk Sewer Project of $13.6 million were $4.5 million less than budget. Project expenditures in the Collection System Program including the Dougherty Tunnel and Trunk Sewer Project of $24.5 million were $4.6 million less than budget. Major project expenditures in the General Improvements Program of $1.7 million were $400,000 greater than budget. Ms. Farrell stated that MIS Administrator Mark Greenawalt had indicated that about $590,000 would be spent in 2001-2002 for Information Technology Development. Ms. Farrell stated that the planning group in evaluating the fund requests had thought that there was insufficient staff to complete that work in 2001-2002 and some funds had been moved into subsequent years. Mr. John Phillips, MIS Systems Analyst, was then hired and the work was completed and the funds expended in fiscal year 2001-2002 primarily for the upgrading of the network. Ms. Farrell stated that it was a good decision to proceed with the network upgrade and the District has benefitted from that. Major project expenditures in the Recycled Water Program of $258,000 were $1.4 million less than budget. Actual CIB revenues (excluding the Dougherty Tunnel and Trunk Sewer reimbursements) were $16,991,848 compared to the CIB estimate of $20,577,000. Revenues for Dougherty Tunnel and Trunk Sewer reimbursements were $10,922,257. Actual CIB total revenues, including the Dougherty Tunnel and Trunk Sewer Project, of $27,914,105 less actual CIB total expenditures with Dougherty Tunnel and Trunk Sewer of $31,379,086 less debt retirement of $1,285,000 resulted in a net Sewer Construction Fund decrease for fiscal year 2001-2002 of $4,749,981. The Capital Improvement Program is operating in a deficit spending mode if the $15 million bond financing cash infusion is not included. Member Lucey questioned why the District continues in the deficit spending mode rather than matching expenditures to revenues. Ms. Farrell indicated that this has been the direction given by the Board in the past and that this direction can be revisited at the upcoming Capital Improvement Budget workshop later this fall. Mr. Batts indicated that the major portion of the Sewer Service Charge increase went to the Capital Improvement Budget to meet expenditures. In addition, the District connection fees were raised, 09 0, \ 5. -.."". I 02 14 increasing Capital Improvement Budget revenue. Even with these increases in revenue, the program is still running at a deficit. It is hoped that increases in revenue from connection fees will help to mitigate this, but these fees are dependant on economic conditions. President Menesini thanked Ms. Farrell for the update and indicated that the 2001-2002 Capital Improvement Budget Year End Status Report was duly received. 15. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 16. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 17. CLOSED SESSION a. SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) - ONE POTENTIAL MATTER This closed session was not held. 18. REPORT OF DISCUSSIONS IN CLOSED SESSION None 19. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 5:03 p.m. ~~'¿£¡~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: S re ar of the Central on Sa . ry District, County of Costa, State of California 09 05 (['!';.';': V