HomeMy WebLinkAboutBOARD MINUTES 10-17-02
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MINUTES OF THE REGULAR BOARD MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON OCTOBER 17, 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 October 17, 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 COLLEEN HENRY. NEWLY HIRED SOURCE CONTROL
INSPECTOR I
.
INTRODUCE GEORGIANA MCCLEASE. NEWLY HIRED ADMINISTRATIVE
SECRET ARY
.
INTRODUCE GERALD (CHUCK) ORTEGA. NEWLY HIRED UTILITY WORKER
Ms. Colleen Henry, Source Control Inspector I, Ms. Georgiana McClease, Administrative
Secretary, and Mr. Gerald (Chuck) Ortega, Utility Worker, were introduced and welcomed
to the District by President Menesini and the Board of Directors.
2. PUBLIC COMMENTS
None
3. AWARDS AND COMMENDATIONS
a.
RECEIVE ASSOCIATION OF METROPOLITAN SEWERAGE AGENCIES (AM SA)
GOLD AWARD RECOGNIZING CENTRAL CONTRA COSTA SANITARY DISTRICT'S
OUTSTANDING WASTEWATER TREATMENT EFFORTS IN ACHIEVING 100
PERCENT COMPLIANCE WITH NATIONAL POLLUTANT DISCHARGE ELIMINATION
SYSTEM (NPDES) PERMIT REQUIREMENTS DURING CALENDAR YEAR 2001
Mr. Charles W. Batts, General Manager, stated that the District has received the
Association of Metropolitan Sewerage Agencies (AM SA) Gold Award for not having a
significant permit violation for the calendar year 2001. No record is more important than
the District's National Pollutant Discharge Elimination System (NPDES) permit compliance.
This is the fourth consecutive year that the Plant has received the AMSA Gold Award for
100 percent compliance.
Mr. Batts introduced Mr. Doug Craig, Plant Operations Division Manager, who stated that
in calendar year 2001, the Plant processed 15.8 billion gallons of wastewater, produced
5,256 tons of ash, the Laboratory conducted 39,600 analyses (half for compliance and
half for process control), and there were no NPDES permit violations (100 percent
compliance). The AMSA award criteria are 1 to 5 violations per year for a Silver Award,
zero violations per year for a Gold Award, and zero violations for five consecutive years
for a Platinum Award. There are 324 AMSA agencies. In calendar year 2001, AMSA
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presented 122 Silver Awards, 181 Gold Awards, and 14 Platinum Awards. In 2001,
AMSA agencies had 278 permit violations, and non-AM SA members had 1,006,222
permit violations. In nine of the last ten years, the District has achieved either the Silver
Award or the Gold Award. Mr. Craig stated that there are many things that can present
challenges in achieving 100 percent compliance. In recent years, the District has had to
address compliance challenges associated with construction impacts, mechanical
breakdown of critical equipment, communication of process issues, and uncontrollable
constituents. There are increasingly stringent requirements in the District's new NPDES
permit. Mr. Craig expressed appreciation for the support the Board of Directors has given
for facilities, and acknowledged the contributions of all District staff. Mr. Craig
introduced Chemist II Mary Lou Esparza-Vignalats, Shift Supervisor Bruce Dobey, and
Machinist Dean McNeely, who presented the 2001 AMSA Gold Award for 100 percent
compliance to President Menesini and the Board of Directors.
President Menesini and the Board of Directors acknowledged all those who helped the
District achieve 100 percent compliance for the fourth consecutive year.
Mr. Batts stated that the AMSA Gold Award is an outstanding team effort, and asked that
that word be carried back to all employees.
4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
None
5. BIDS AND AWARDS
a.
AUTHORIZE AWARD OF A SERVICE CONTRACT TO ROTO-ROOTER FOR
PROVIDING TV INSPECTION OF SANITARY SEWERS
Mr. Batts, General Manager, stated that bidding of TV inspection work as a service
contract has resulted in lower overall costs and a significant reduction in paperwork. At
award of the last TV inspection contract at the August 8, 2001 Board Meeting, Board
Members asked several specific questions related to the District's TV inspection efforts;
specifically, the number and purpose of the different TV inspection efforts, and
performing the work with in-house staff in lieu of hiring contractors. Mr. Batts introduced
Mr. Tad Pilecki, Principal Engineer, who stated that Mr. Tom Godsey, Associate Engineer,
could not be here today as he is with his wife and new son born on Tuesday, October 15,
2002.
Mr. Pilecki stated that the Sewer TV service contract was advertised on September 20
and 25, 2002, and bids were opened on October 4, 2002. There were six bids ranging
from $153,840 to $338,005. The low bid was from Roto-Rooter. Mr. Pilecki showed
photographs and described the sewer TV inspection equipment, camera, and operation.
The District's sewer TV inspection efforts include this Sewer TV Service Contract
(Design), Capital TV Inspection Contract (Planning), and Collection System Operations
Division (CSOD) Maintenance Crew (Immediate Needs). The Sewer TV Service Contract
(Design), before the Board for consideration today, is for intermittent sewer TV work over
a three-year period. The data is used for sewer capital projects. The Capital TV
Inspection Contract (Planning) is a large seven-year effort. This is a year-by-year contract.
About 1 million feet of District sewer per year are televised. The data is used in the
Capital Improvement Planning process to ensure that the appropriate amount is budgeted.
The CSOD Maintenance Crew (Immediate Needs) effort is a continuous operations and
maintenance function that deals with difficult sewers. Mr. Pilecki described the differing
scopes of work of the three TV inspection efforts. The Sewer TV Service (design) effort
is spread all over the District service area, usually consists of short runs, and the level of
detail is less than the other efforts. It is performed by a contractor for utility coordination,
design investigations, and risk management. The Capital effort is a planning effort and
a much more detailed level of effort. It is a comprehensive effort to televise all District
sewers to create a reference condition database. The CSOD Maintenance Crew effort
uses in-house staff to televise lines in emergency situations, and for pipeline acceptance,
service call follow-up, locating for repairs, and cleaning report investigation. Mr. Pilecki
reviewed the Sewer TV Inspection relative costs, stating that the Capital effort averages
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$1.60 per linear foot for approximately $1,000,000 annually; the Service effort averages
$1.18 per linear foot for approximately $50,000 annually; and'the CSOD Maintenance
Crew effort averages $1.67 per linear foot for approximately $275,000 annually.
Mr. Pilecki stated that the majority of this work, contract T.V. inspections, is being done
by contract rather than using in-house staff because there are many new and pending
regulations focusing on asset management such as CMOM (Capacity, Management,
Operations and Maintenance). The District has been proactive as have many other
districts, and started a seven-year program to inspect all sewer lines. It is unclear
whether the District will be required to do a continuous inspection program. Since it is
unclear where the regulations are going, because of the large investment for TV
inspection equipment and staffing, and because of the changing technology, staff believes
that it is prudent to wait and see what efforts will be required and to proceed with a year-
to-year contract at this time for the Sewer TV Inspection Capital Program.
In response to questions from Member Lucey, Mr. Pilecki stated that it is recommended
that the District wait until the final regulations are promulgated before considering
whether to proceed with a full-scale in-house TV inspection program for capital.
Discussion followed with regard to the differing cost per linear foot for various terrains
and segmenting the contracts by areas, the training and ability of District staff to do this
type of work, OSHA safety issues, changing technology relating to TV inspection
cameras, and CSOD priorities of reduction in overflows and backlog folder work.
Mr. Batts stated that findings of the TV inspection work to date will be discussed at the
November 14, 2002 Board Capital Planning Workshop.
Member Lucey stated that he would be interested in receiving a staff proposal at the
November 14 Board Workshop for a surcharge for the Orinda area if the results of TV
inspection turn out to be as he expects.
It was moved by Member Nejedly and seconded by Member Hockett, that award of a
service contract be authorized to Roto-Rooter, the lowest responsible bidder in the amount
of $153,840, for providing TV inspection of sanitary sewers for a three-year period.
Motion approved with Member Lucey voting no.
Member Lucey stated that he voted no because he believes that the separate TV
inspection contracts should be combined into one contract to save the District ratepayers
money.
6. REPORTS
a.
GENERAL MANAGER
1 )
Mr. Batts, General Manager, stated that at the Board Outreach Committee
meeting in August, the Committee agreed that the District should produce
an annual report for the 2001-2002 fiscal year. Historically the District
prepared an annual report each fiscal year; however, the last District annual
report was in 1996. Staff is now in the process of developing a new annual
report format to reflect the goals of the District.
Mr. Batts introduced Ms. Harriette Heibel, Community Affairs Manager, who
stated that the purpose of the annual report is to provide an overview of
District accomplishments during the past year, financial highlights, and
historical perspective, and to communicate who the District is and what we
do. The proposed audience will include wastewater and water agencies
within California; local elected officials; related friends, partners, agencies,
and associations; District employees; and the media. It is proposed that the
theme build on the District's strengths, highlighting the four goal areas of
full regulatory compliance, excellent customer service, responsible rates,
and high performance organization. The annual report will be about 12
pages plus a cover, and will be produced in-house to the extent possible.
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The content will include information about the Board of Directors, a letter
or message from the General Manager, an overview of the District,
highlights of major activities organized by the four goal areas, and financial
and budgetary information. Ms. Heibel stated that under the goal of full
regulatory compliance, topics will include the District's new National
Pollutant Discharge Elimination System (NPDES) permit, the new
Environmental Laboratory, pollution prevention efforts, and the pretreatment
program. The goal of excellent customer service will include information on
public outreach on construction projects, serving the public at the
Household Hazardous Waste Collection Facility, serving customers at the
Permit Counter, and the web site. Under the goal of responsible rates,
finance and budgetary information, Capital Improvement Program, and cost-
cutting efforts and cost-effective solutions will be presented. The goal of
high performance organization will include information on the safety
program, strategic planning and continuous improvement, training, and how
we measure ourselves. Ms. Heibel stated that it is proposed that the annual
report be discussed in more detail with the Board Outreach Committee on
October 24, brought to the full Board for review at the November 21 Board
Meeting, and mailed out in early December.
Discussion followed with regard to the cost per capita of previous annual
reports compared to the proposed annual report, the need for consistency
in producing an annual report on an ongoing basis, showcasing the mission
of the District to protect public health and the environment and the costs
to carry out that mission, highlighting the fact that the District is a national
award-winning agency, and using the annual report as an educational tool
and marketing piece. When the final report is presented to the Board,
Member Lucey requested information on the costs including staff time.
Mr. Batts stated that the report will be low key, but all the work done by
Ms. Heibel and her staff is first rate. Mr. Batts noted that in addition to the
annual report, the District produces the Comprehensive Annual Financial
Report.
2)
Mr. Batts, General Manager, stated that at the last Board Meeting staff
briefed the Board on the proposed development of the IT Corporation Baker
site located just north of the District treatment plant. A vehicle storage and
maintenance yard is proposed by Conco Cement, and a rail storage and
transfer yard is being proposed by U.S. Development. On October 11,
2002, staff and the District's geotechnical consultant Heinz Berger of URS
Corporation, met with the two developers and their engineering consultants
to discuss the District's concerns about the impact of such development
and the impacts of traffic on District facilities such as the outfall pipeline.
Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services
Division Manager, who stated that no conclusions were reached at the
October 11 meeting with the developers but the District's concerns about
the proposals were presented and more information was received about the
proposals. Mr. Swanson stated that the District is concerned about impacts
on major District pipelines from construction damage, settlement,
differential settlement, and horizontal displacement. Additional concerns
relate to access issues. Access to the IT Corporation Baker site is currently
via an existing gravel road on 20- to 34-foot wide easements across
District-owned property. It is estimated that 130 truck per day will access
Conco Cement and 50 to 80 trucks per day will access U.S. Development
in addition to personal vehicles.
Discussion followed with regard to easement rights and the prohibition
against substantially changing the use of an easement.
Member Boneysteele indicated that the Board should view the site prior to
making any decisions.
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10
3)
4)
Mr. Swanson stated that Conco Cement is aware of the District pipelines
and has agreed that its buildings will be at least 80 feet away from the M-2
force mains; there will be no increase in loading on the pipelines; storage
and parking over the pipelines or within 50 to 100 feet of the pipelines will
be prohibited; and vehicle crossings will be engineered. Conco Cement
needs District approval of building and pipe crossing designs; a water line
easement across the District's Lagiss property, improvements to the access
road across District property; relocation of District access easements on
their property; sewer service; and recycled water.
Mr. Swanson stated that U.S. Development does not have any specific
commodity in mind right now. They have submitted a pre-application to
Contra Costa County with some alternatives but the ethanol storage plan
has been withdrawn for now. U.S. Development is also aware of the
District pipelines and set-back requirements; they have some ideas for rail
crossings of the District outfall, one option is to use soil cement "piers"
with concrete slab that spans the outfall. U.S. Development needs
improvements to the access road across District property; District approval
of the crossing design and storage locations; and perhaps recycled water.
Discussion followed in which Member Lucey questioned why the District is
pursuing this. To have 200 plus cement trucks a day going over major
District pipelines is a significant problem. If there is a problem, the District
will be cited. Can the District just say no?
Mr. Batts stated that staff would like to say no but the companies have
economic development rights to the parcels.
In response to questions from Member Hockett, Mr. Swanson stated that
he believes there are ways this could be engineered to protect the integrity
of the District pipelines. Being mindful of Member Lucey's comments, it
takes just one incident for there to be a significant problem. Mr. Swanson
stated that he has a personal interest in protecting the District pipelines in
this areas as he has worked on projects on these facilities through the
years. As indicated by the General Manager, the District's concerns are
first to protect the District pipelines and secondly access.
Mr. Kenton L. Aim, Counsel for the District, stated that the District could
fight this development and it mayor may not be successful; the District
could acquiesce and let other decision makers go forward; or the District
could negotiate with the developers because they need several things from
the District. There are a lot of things that must be worked out, but most of
those decisions will be made before the Planning Commission. The District
must decide what position to take before the Planning Commission.
Mr. Batts stated that the Secretary of the District will set up a tour of the
IT Corporation Baker site for interested Board Members.
Mr. Batts, General Manager, announced that the District is advertising the
Steam Turbine System Upgrade Project, DP 6158. The project will provide
a complete overhaul of the steam turbines by replacing most of the steam
path components subject to wear. It will upgrade and rehabilitate all of the
ancillary support systems and provide state of the art controls. Because of
the importance of the steam turbines to the treatment process, the
refurbishment is a high priority. The engineer's estimate for the
construction portion of the project is $1 million. The total project budget
is $2.45 million.
Mr. Batts, General Manager, stated that as discussed with the Board on
previous occasions, there is an industry-wide concern for developing future
leaders and staff for the wastewater utility industry. In response to this
concern, various professional organizations instituted the Water and
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Wastewater Leadership Center at the University of North Carolina with a
management curriculum focused on management skills and the challenges
facing our industry. The Center opened in March 2001. A brochure
describing the 1 2-day residential program was distributed. The program is
intense and demanding, targeted to the utility industry. The cost is
approximately $12,000 per attendee. Mr. Batts stated that with the
Board's concurrence he would like to discuss with the managers sending
two managers this year and in future years to this program. Mr. Batts
proposed that the cost of this program be covered by the unused portion of
the Managers' Education Reimbursement Account. This would require the
approval of the Board and the permission of the Management Group. A
review of this account for the past three years indicates that there is usually
enough unused funds within the existing budget to cover the cost of two
attendees. The proposal presented at this time would be budget neutral.
Mr. Batts stated that if more managers were to attend, additional funds
would have to be budgeted. Mr. Batts stated that he has contacted
individuals from Fairfield Suisun Sewer District, South Bayside Authority
District, and Delta Diablo Sanitation District who have attended the program
and they have indicated they found that it was very beneficial.
Member Hockett endorsed the proposal, stating that the more educational
opportunities available the better.
Member Nejedly indicated that he would like to take some time to think
about it.
President Menesini stated that discussion with the managers is appropriate,
stressing that the most important thing is how this meets with the District's
objectives for the future and the cost effectiveness of such a training
program.
Member Boneysteele asked if someone who has attended the program could
be available to present information to the Board.
Member Hockett stated that the District should take advantage of this
qualified program backed by the industry.
5)
Mr. Batts, General Manager, announced that the Solar cogeneration turbine,
which produces most of the electricity for the treatment plant failed at 6:00
p.m. on Monday, October 14, 2002. A Solar maintenance technician has
inspected the unit, determined that vane failure led to the shutdown, and
that the unit needed to be rebuilt. The turbine is currently on a truck to
Houston, Texas. A rebuilt unit will be returned to the District in two to
three weeks. The rebuild costs of the turbine are covered under the
District's maintenance contract with Solar; however, the failure will cost the
District between $60,000 to $90,000 for purchase of electricity and
demand charges from PG&E. The Board may recall a similar failure last
Spring, making this the second turbine to fail this year. Staff has begun
discussions with Solar Turbines regarding the quality control of their rebuilt
turbines, and the cost of installing a new turbine that might be more
reliable.
6)
Mr. Batts, General Manager, distributed the Household Hazardous Waste
Collection Facility (HHWCF) 2001-2002 Annual Report. At the next Board
Meeting, staff will present a summary of the report and answer any
questions that Board Members may have on its content. The HHWCF is
celebrating five years of service next week. Staff is planning to hang a
banner commemorating the event and to provide customers with a token in
recognition of the five years of service. A celebration with our agency
partners is being planned as well and will be discussed at the Board
Outreach Committee meeting on October 24, 2002. Since this concerns
the HHWCF, the Board Household Hazardous Waste Committee Members
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b.
might also like to attend the October 24 Outreach Committee meeting. The
agenda for the October 24 Outreach Committee meeting was distributed.
7)
Mr. Batts, General Manager, stated that as the Board is aware, Contra
Costa County had requested that the District operate Contra Costa County
Sanitation District No.6 (Stonehurst) through September 2002 until they
could contract for a new operator. The contractor who previously operated
the facility had resigned and the County was unable to secure a state-
licensed operator. The District took over operations July 1, 2002, under an
agreement with the County. The facility had not met its Waste Discharge
Permit requirements in over a year. By the end of July, District staff had
the facility in compliance, and it has been in compliance ever since. The
County has contracted with Phillip Brothers, a small operations firm from
Napa, to operate the facility effective October 1, 2002. Mr. Batts
distributed the thank you letter received from the Contra Costa County
Public Works Department, acknowledging the help of the District Operations
section, particularly Shift Supervisor George Fowler, Plant Operations
Superintendent Ted Smith, and Instrument Shop Supervisor Jim Kneis.
8)
Mr. Batts, General Manager, distributed the letter received from the Institute
of International Education thanking the District for hosting the Egyptian
study tour delegation on September 18, 2002.
9)
Mr. Batts, General Manager, announced that on Friday, October 18, 2002,
the District will host a thank-you lunch for the Master Gardeners and the 16
stores that have participated in the District's Integrated Pest Management
(lPM) Partnership Program. President Menesini will be attending the lunch
and any other Board Members who are interested are welcome. The event
is scheduled for tomorrow from 11 :30 a.m. to 1 :30 p.m. in the District's
Multipurpose Room.
10)
Mr. Batts, General Manager, reported that at the recent Water Environment
Federation Technical Conference, Capital Projects Division Manager Bill
Brennan met with representatives of vendors that manufacture clarifier
mechanisms relative to the District's patented Seismic Protection System
for Secondary Clarifier Feedwells. Mr. Batts distributed the sales literature
prepared by Senior Engineer Ba Than and produced in-house. The
manufacturers contacted were WesTech, Ondeo Degrement, EIMCO, and
HiTech. Mr. Brennan will send a follow up letter to see if there is any
interest.
11 )
Mr. Batts, General Manager, reported that on October 9 and 20, 2002, the
Regional Water Quality Control Board (RWQCB) conducted its annual Level
B inspection of the District treatment facilities. Mr. Ray Balcum was the
inspector and he spent the first day touring the plant, and the following day
reviewing Maintenance records and Laboratory records and procedures.
Based on Mr. Balcum's comments at the conclusion of the inspection, it
appears that he was impressed with both the operation and maintenance of
the plant, and that he will have a few comments and recommendations for
the District's consideration.
COUNSEL FOR THE DISTRICT
1 )
10
Mr. Kenton L. Aim, Counsel for the District, announced that unless the
Board objects he will be attending the Association of Metropolitan Sewerage
Agencies/American Water Works Association (AMSA/AWWA) Attorneys
Meeting in November in Denver, Colorado, so he will miss a Board Meeting.
Mr. Aim stated that he has attended the AMSA/AWWA Attorneys Meetings
in the past and found them to be superior. Mr. Aim stated that if this is
acceptable to the Board, he would intend to split the cost for the
conference between the District and his firm. The Board unanimously
concurred. Member Lucey requested that Mr. Aim bring back tapes of the
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session to share with interested Board Members and staff again this year if
they are available. Mr. Aim indicated that he would.
c.
SECRETARY OF THE DISTRICT
None
d.
BOARD MEMBERS
1 )
Member Boneysteele thanked staff for their assistance in duplicating and
distributing the memorial card from former District Counsel's John J.
Carniato's memorial service.
2)
President Menesini announced that the East Bay Regional Park District will
hold a dedication of the Waterbird Regional Preserve at AI McNabney Marsh
in Martinez at 11 :00 a.m. on Saturday, November 2, 2002. The Board and
staff are invited to attend.
BREAK
At 4:06 p.m., President Menesini declared a recess, reconvening at the hour of 4: 17 p.m.
with all parties present as previously designated.
7. TREATMENT PLANT
a.
ADOPT A RESOLUTION: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A
SOLE SOURCE CONTRACT FOR THE STEAM TURBINE SYSTEM UPGRADES
PROJECT. DP 6158. WITH DRESSER-RAND FOR AN AMOUNT NOT TO EXCEED
$200.000
Mr. Batts, General Manager, stated that as announced earlier in the meeting, the project
that will refurbish both steam aeration turbines will be advertised for bid. At the June 6,
2002 Board Meeting, sole source prepurchase of the parts required for the turbines was
authorized from Dresser-Rand, the original equipment manufacturer for Terry Turbine.
Dresser-Rand has unique product knowledge specific to Terry Turbine. Having the parts
installed by Dresser-Rand will provide a more enforceable warranty, and will allow the
District to better control the turbine upgrade project.
Mr. Batts introduced Mr. Craig Mizutani, Associate Engineer, who stated that the 2,500
horsepower steam-driven turbines use waste heat steam to produce aeration air. They
have been in continuous operation since 1975, and have provided reliable service until last
winter. The turbines failed last winter and Dresser-Rand, of Benicia, responded quickly
to restore the turbines and they have stood behind their work. Inspection of the turbines
revealed worn parts. A turbine refurbishment project including piping and structural
modifications and a control system upgrade was begun. The Board authorized sole source
prepurchase of turbine parts from Dresser-Rand on June 5, 2002, and the possibility of
sole sourcing installation by Dresser-Rand was also discussed at that time. Mr. Mizutani
stated that the turbines are large, fast, and complex. Dresser-Rand is the only local
authorized factory representative for Terry Turbine and performed well on the two turbine
repairs last winter. Dresser-Rand provides the unique knowledge and expertise to install
this proprietary equipment and will guarantee the overall performance of the turbine
system. Mr. Mizutani reviewed the costs for this project, including the recommended sole
source contract not to exceed $200,000 with Dresser-Rand, and the other turbine-related
work totaling $1 million to be performed by a general contractor.
Following discussion, it was moved by Member Nejedly and seconded by Member
Boneysteele, that Resolution No. 2002-074 be adopted, finding that pursuant to the
Public Contracts Code and District Purchasing Standard S-013, entering into a contract
with Dresser-Rand is required to provide the District with reliable steam turbines, and that
the public interest is best served by utilizing the unique technology that Dresser-Rand, the
authorized factory representative of the District's two existing Terry Turbines, has
developed to upgrade these specific machines; and that the Board of Directors further
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finds that under the circumstances Dresser-Rand is the only authorized factory
representative available for installing the Terry Turbine replacement equipment, that it is
in the best interest of the District to proceed with a sole source contract with Dresser-
Rand, and that the General Manager be authorized to execute a sole source contract with
Dresser-Rand in an amount not to exceed $200,000. The motion was unanimously
approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Nejedly, Boneysteele, Hockett, Lucey, Menesini
None
None
8. HUMAN RESOURCES
a.
ADOPT RESOLUTION APPOINTING DIANE WAGNER TO THE POSITION OF
PURCHASING AND MATERIALS MANAGER. M-35 ($6.677-$8.115), EFFECTIVE
OCTOBER 28. 2002
Mr. Batts, General Manager, stated that when the Purchasing and Materials Manager
position became vacant earlier this year, an extensive recruitment was conducted, and
an outstanding candidate was selected. Ms. Diane Wagner has an extensive background
in Purchasing and Materials Services, and experience in working at a wastewater
treatment facility.
It was moved by Member Nejedly and seconded by Member Hockett, that Resolution No.
2002-075 be adopted, appointing Ms. Diane Wagner to the position of Purchasing and
Materials Manager, M-35 ($6,677-$8,115), effective October 28, 2002. The motion was
unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Nejedly, Hockett, Lucey, Boneysteele, Menesini
None
None
On behalf of the Board of Directors, President Menesini extended apprecialion to Mr.
Randall Musgraves, Director of Operations, for his efforts in overseeing the Purchasing
Section during this recruitment.
9. APPROVAL OF MINUTES
a.
MINUTES OF SEPTEMBER 19. 2002
b.
MINUTES OF OCTOBER 3. 2002
It was moved by Member Hockett and seconded by Member Boneysteele, that the
minutes of September 19, 2002 and the minutes of October 3, 2002, be approved as
presented. There being no objection, the motion was unanimously approved.
10. APPROVAL OF EXPENDITURES
a.
EXPENDITURE LIST DATED OCTOBER 17. 2002
Notes were distributed from the October 14, 2002 Budget and Finance Committee
meeting at which the Expenditure List dated October 17, 2002 was reviewed.
It was moved by Member Boneysteele and seconded by Member Hockett, that the
Expenditure List dated October 17, 2002, including Self Insurance Check Nos. 101933-
101941, Running Expense Check Nos. 140924-141284, Sewer Construction Check Nos.
24969-25014, Payroll Manual Check Nos. 48874-48877, and Payroll Regular Check Nos.
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54251-54279, be approved as recommended. There being no objection, the motion was
unanimously approved.
11. BUDGET AND FINANCE
a.
RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED
JUNE 30. 2002
Ms. Deborah Ratcliff, Controller, stated that the firm of Hood and Strong has completed
the audit of the District Financial Statements for the Fiscal Year 2001-2002. The audited
financial statements were reviewed in detail with the Board Budget and Finance
Committee on September 30, 2002. The Board Budget and Finance Committee
recommended two minor changes to the Note Section of the financials and those have
been imbedded in the documents now being presented to the full Board. Ms. Ratcliff
reported that the District received an unqualified opinion, basically a clean audit with no
management letter. Ms. Ratcliff noted that this year the auditors reviewed the District's
investment returns. This is done once every four years as required by the District's
Investment Policy.
Ms. Ratcliff reviewed the audited financial results, stating that 2001-2002 actual Running
Expense Fund total revenue was $40,395,000 compared to budgeted revenue of
$40,992,000 resulting in an unfavorable variance of $597,000 or 1.5 percent. Actual
Running Expense Fund total expenses were $37,594,000 compared to budgeted
expenses of $40,209,000 resulting in a favorable variance of 6.5 percent. The Running
Expense Fund balance at June 30, 2002 was $6,172,000.
Ms. Ratcliff reported that 2001-2002 Sewer Construction Fund total revenues of
$16,992,000 compared to budgeted revenues of $20,577,000 were $3,585,000 less
than budget. Sewer Construction Fund actual total expenditures of $21,742,000
compared to budgeted revenues of $28,578,000 were $6,836,000 less than budget.
Sewer Construction Funds available at June 30, 2002 were $33,327,000 plus 2002 bond
financing of $15,121,000 resulting in total Sewer Construction Funds available at June
30, 2002 of $48,448,000. This is the result of a concerted effort on the part of staff to
defer expenditures to try to minimize the deficit. Some projects were deferred, several
came in under budget, and some were completed early. The result, was a $ 5 million cut
into Sewer Construction Fund reserves rather than the $8 million budgeted cut in
reserves. Ms. Ratcliff noted that the revenue and expense numbers presented do not
include $10,922,000 of reimbursed costs for the Dougherty Tunnel and Trunk Sewer
Project.
Ms. Ratcliff stated that on October 14, 2002, a Request for Proposals (RFP) was mailed
to 18 audit firms. One response has been received already. Staff will analyze the
responses and ask the Board Budget and Finance Committee to review the analysis and
recommend selection of an audit firm for 2002-2003 to the full Board for consideration.
Following discussion, President Menesini declared that the Audited Financial Statements
for the Fiscal Year ended June 30, 2002 were duly received.
12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None
13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS
None
14. CLOSED SESSION
PERSONNEL MATTERS
a.
The closed session was held to discuss personnel matters pursuant to Government Code
Section 54957 - Public Employee Discipline/Dismissal/Release.
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b.
INITIATION OF LITIGATION
Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on
existing facts and circumstances, the Board of Directors of the Central Contra Costa
Sanitary District has decided or is deciding whether to initiate litigation. One potential
matter is to be discussed.
At 4:41 p.m., President Menesini declared the closed session as noted above to discuss
personnel matters pursuant to Government Code Section 54957 and anticipated litigation
pursuant to Government Code Section 54956.9(c). At 5:48 p.m., President Menesini
concluded the closed session and reconvened the meeting into open session.
15. REPORT OF DISCUSSIONS IN CLOSED SESSION
No decisions were made or votes taken in closed session which require reporting at this
time.
16. ADJOURNMENT
There being no further business to come before the Board, President adjourned the
meeting at the hour of 5:50 p.m.
~ahO ~l1ß-£~
President of the Board of Directors,
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGNED:
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