HomeMy WebLinkAboutBOARD MINUTES 01-09-03
93
MINUTES OF THE ADJOURNED REGULAR BOARD MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON JANUARY 9, 2003
The District Board of the Central Contra Costa Sanitary District convened in an
adjourned 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 January 9, 2003.
President Nejedly called the meeting to order and requested that the Secretary call roll.
1. ROLL CALL
PRESENT: Members:
Menesini, Hockett, Lucey, Boneysteele, Nejedly
ABSENT:
Members:
None
a.
PLEDGE OF ALLEGIANCE TO THE FLAG
Board and staff joined in the Pledge of Allegiance to the Flag.
b.
INTRODUCTIONS
.
RECOGNIZE STEVE LARSEN ON HIS PROMOTION TO PUMPING
STATIONS SUPERVISOR
.
INTRODUCE LEO GONZALEZ, NEWLY HIRED PUMPING STATIONS
SUPERVISOR
.
INTRODUCE CHRIS JOHNSEN. NEWLY HIRED MAINTENANCE CREW
MEMBER I
President Nejedly and the Board of Directors congratulated Mr. Steve Larsen, Pumping
Stations Supervisor, on his recent promotion. Mr. Leo Gonzalez, Pumping Stations
Supervisor, and Mr. Chris Johnsen, Maintenance Crew Member I, were introduced and
welcomed to the District by President Nejedly and the Board of Directors.
2. PUBLIC COMMENTS
None
3. AWARDS AND COMMENDATIONS
a.
RESOLUTION COMMENDING MARIO M. MENESINI FOR HIS SERVICE AS
PRESIDENT OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
President Nejedly reviewed some of the accomplishments of the past year referenced in
the resolution and commended Member Menesini for his leadership during his term as
President of the Board of Directors.
It was moved by Member Hockett and seconded by President Nejedly, that Resolution
No. 2003-001 be adopted, commending Board Member Mario M. Menesini for his
service to the District as President of the Board of Directors. There being no objection,
the motion was unanimously approved.
President Nejedly presented a framed resolution to Member Menesini and was joined
by the Board and staff in commending him for his leadership. Member Menesini
accepted the proclamation, thanking the Board and staff for their support and
assistance during the past year.
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4. CONSENT CALENDAR
It was moved by Member Hockett and seconded by Member Lucey, that the Consent
Calendar, consisting of Items a. and b., be approved as recommended, resolutions
adopted as appropriate, and recordings duly authorized.
a.
The agreement between the District and Lloyd and Jane Carone
pertaining to a temporary private sanitary sewer connection for 2477
Reliez Valley Road, Martinez (APN 365-150-078), Job 3048, was
approved; staff was authorized to record said agreement; and Resolution
No. 2003-002 was adopted to that effect.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Hockett, Lucey, Menesini, Boneysteele. Nejedly
None
None
b.
The Board's regularly scheduled meeting on February 6, 2003 at 2:00
p.m. was set as the date and time for a public hearing to receive
comments on the proposed Reimbursement Fee for properties which
could directly connect to the sewer identified as Job 5480.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Hockett, Lucey, Menesini, Boneysteele, Nejedly
None
None
5. HEARINGS
a.
CONDUCT A HEARING TO RECEIVE COMMENTS ON AND CONSIDER
ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF
PUBLIC EASEMENTS FOR SANITARY SEWER PURPOSES AND
AUTHORIZING EMINENT DOMAIN PROCEEDINGS FOR THE WENDT
RANCH OFFSITE SEWER, DP 5436
Mr. Charles W. Batts, General Manager, stated that staff has been working for many
years to acquire easements needed for a public main sewer to serve the Wendt Ranch
development near Blackhawk. A recommended route for the sewer has been identified.
The developer has secured easements for this route over all but two properties. Staff
has made offers to the two property owners, but has not been able to conclude
purchase of the easements. The Wendt Ranch development has received all permits
and approvals required to begin construction. Grading, infrastructure installation and
model home construction is underway on the site and the first sewer connections are
anticipated in spring of 2003. Staff recommends that the District initiate eminent domain
proceedings to acquire the easements at this time to meet the schedule for connection
of these new homes to the public sewer system. The first step in the process is to hold
a hearing on the proposed Resolution of Necessity for the acquisition of the easements
where the affected property owners may appear and be heard.
Mr. Batts stated that on Monday staff learned that the Sius had hired an attorney,
Thomas Nagle, to represent them in the eminent domain proceedings. The District has
received a letter from Mr. Nagle requesting a continuance of the hearing to the January
23, 2003 Board Meeting. Staff recommends that the Board receive the staff report and
open the hearing today so that anyone who has come today may comment, and then
the Board can consider the request for continuance until the next Board Meeting. Mr.
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Richard Rypinski, the attorney representing the District in this matter, has asked to be
allowed to record today's hearing to ensure an accurate administrative record.
Mr. Batts introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who stated that the
purpose of the hearing today is to receive comments on the proposed Resolution of
Necessity for acquisition of easements for the Wendt Ranch Offsite Sewer. Planning for
possible service to the Wendt Ranch area began in the late 1980s. Preferred gravity
sewer routes were included in the Town of Danville's 1992 Specific Plan for the
Lawrence Road area, in Contra Costa County's Environmental Impact Report (EIR) for
the Wendt Ranch Development, in the District's 1997 Specific Facilities Plan for
Wastewater Utility Service to the Dougherty Valley and Tributary Areas, and in Contra
Costa County's 2001 EIR for the Camino Tassajara Combined General Plan
Amendment Study. Development potentially tributary to the Wendt Ranch Offsite
Sewer include the approved Wendt Ranch development of 323 units, and other
intervening areas that have been approved for 142 units but are currently under
litigation. Mr. Miyamoto-Mills used a map and described the properties and noted that it
is planned to sewer this area via the Lawrence Road Trunk Sewer to the Dougherty
Valley Tunnel and Trunk Sewer Project. The Lawrence Road Pumping Stations 1 and 2
are temporary and will be abandoned and removed when the trunk sewer is available to
the Dougherty Valley.
Mr. Miyamoto-Mills stated that the gravity alternative requires an off-site main sewer
across five private properties. The developer has secured easements over three of
these properties. Easements over the remaining two properties have not yet been
acquired. Staff recommends that the Board initiate eminent domain proceedings to
acquire those remaining easements at this time. The first step in eminent domain
proceedings is today's hearing on a proposed Resolution of Necessity to allow affected
property owners to appear and be heard.
Mr. Miyamoto-Mills stated that the first issue that the Board must consider is whether
the public interest and necessity require the proposed project. Mr. Miyamoto-Mills
stated that wastewater utility service is needed for new residents of the approved Wendt
Ranch development. The development area was annexed to the District in 1997. The
only alternative to the proposed project is a new pumping station, contrary to District
policy to avoid the economic and environmental costs of pumping.
The second issue the Board must consider is whether the proposed project is located in
a manner that will be most compatible with the greatest public good and the least
private injury and whether the proposed easements included in the Resolution of
Necessity are necessary for the proposed project. Mr. Miyamoto-Mills stated that five
alternative gravity sewer routes were evaluated with regard to the following issues:
1.
Compatible with the greatest public good?
.
Can service be provided to all potentially tributary area?
.
Can CCCSD design standards be met?
.
Is there potential to negatively impact sensitive habitats?
.
Can the schedule for needed connections be met?
.
What are the capital and O&M costs?
2.
Compatible with the least private injury?
.
How much private property must be taken?
.
How many properties must be crossed?
.
Would future development potential be impacted?
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.
How many manholes would be needed? To what degree would
access for routine maintenance and emergency repair be
disruptive?
Using a map, Mr. Miyamoto-Mills described each of the five gravity sewer route
alternatives considered. Mr. Miyamoto-Mills noted that Alternative Five was proposed
by the Sius, residents of the property, based on one possible subdivision layout they
were considering, and Alternative One is the staff-recommended route.
Member Lucey stated that the District has received a letter from Dr. Siu's attorney that
says no matter what the District does, he does not want the District to fill the pond, but
Dr. Siu had previously told the Board in a District Board Meeting that he wanted the
District to fill in the pond.
Mr. Miyamoto-Mills stated that is correct. Dr. Siu has a different opinion at this point.
Dr. Siu's attorney has asked to meet with staff. Mr. Miyamoto-Mills showed the parcel
map that Dr. Sui used as the basis in support of Alternative Five. Mr. Miyamoto-Mills
stated that in evaluating this staff determined that it is speculative that this particular
development alternative might be approved. There are a number of setbacks for flood
control that affect where subdivided lots could go; and therefore, where the road would
go to serve these properties that might be built.
With regard to the question of whether service can be provided to all potentially tributary
area, Mr. Miyamoto-Mills stated that all alternatives can accomplish this except
Alternative Four (Microtunnel option) which cannot serve the Siu and
Richards/Brockman properties. With regard to whether CCCSD design standards can
be met, Mr. Miyamoto-Mills stated that all alternatives would require special approval of
minor variances for the initial or potential future main extension. Alternative Four would
require a major variance for length and depth of the microtunnel. With regard to
whether there is potential to negatively impact sensitive habitats, Mr. Miyamoto-Mills
stated that while impacts would not be significant and these were addressed in the EIR,
the potential for negative impact declines as location is moved away from Alamo Creek.
Alternative One is farthest from Alamo Creek. With regard to whether the schedule for
needed connections can be met, Mr. Miyamoto-Mills stated that only Alternatives One
and Two can meet the schedule. Alternatives Three and Five would likely require
additional resource agency review and Alternative Four would require additional design
study and lengthy tunnel for the reach. With regard to capital and O&M costs, Mr.
Miyamoto-Mills reviewed the capital cost estimates for each alternative as follows:
. Alternative One $ 309,000
. Alternative Two $ 301,000
. Alternative Three $ 337,000
. Alternative Four $1,069,000
. Alternative Five $ 737,000
Mr. Miyamoto-Mills stated that O&M costs would be minimal for all alternatives, except
Alternative Four (Microtunnel). With regard to the amount of private property that must
be taken, Mr. Miyamoto-Mills reviewed the property that must be taken for each
alternative as follows:
. Alternative One 20,667 sq. ft.
. Alternative Two 21,916 sq. ft.
. Alternative Three 27,766 sq. ft.
. Alternative Four 22,275 sq. ft.
. Alternative Five 23,191 sq. ft.
With regard to how many properties must be crossed, Mr. Miyamoto-Mills stated that
Alternative One would cross two properties, the Siu property and the
Richards/Brockman property. All other alternatives would cross one property. With
regard to whether future development potential would be impacted, Mr. Miyamoto-Mills
stated that some possible subdivision layouts for the Siu property might require
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relocation of portions of Alternative Two, Three, and Five. Many different development
alternatives could be served without relocation. With regard to how many manholes
would be needed and to what degree accessJor maintenance would be disruptive, Mr.
Miyamoto-Mills stated that six new manholes would be needed for all alternatives,
except Alternative Four which would need two new manholes and two tunnel portal
structures. Expected routine maintenance would be on a seven-year cycle.
In conclusion, Mr. Miyamoto-Mills stated that Alternative One is recommended by staff
as the route most compatible with the greatest public good and the least private injury
because:
Service provided to all potentially tributary area;
Least potential for negative impacts on sensitive habitat;
Can meet the schedule for needed connections;
Minimal O&M costs;
Second lowest cost (slightly more ($8,000) than Alternative Two);
Requires the least easement area;
Does not impact future development potential; and
Impact of manholes and maintenance access similar to other alternatives.
Mr. Miyamoto-Mills stated that the last issue to be considered in this hearing is whether
offers suggested by Government Code Section 7267 have been made to the affected
property owners. While not required for acquisition of easements for subsurface sewer,
nonetheless, offers have been made. On November 5, 2002 an offer was made relating
to the Siu property and on November 27, 2002 an offer was made relating to the
Richards/Brockman property. The offers included summaries of the basis for the
amount established as just compensation in the form and containing all of the factual
disclosures listed in Government Code Section 7267.2(a) and (b). Mr. Miyamoto-Mills
stated that District Counsel Kenton L. Aim and Special Counsel Richard G. Rypinski
advise that the District has complied with all conditions and statutory requirements
necessary to exercise the power of eminent domain. California Health and Safety Code
Sections 6512 and 6514 authorize the District to acquire easements by eminent
domain. Mr. Miyamoto-Mills reviewed the schedule for acquisition of easements for the
Wendt Ranch Offsite Sewer calling for the hearing on the Resolution of Necessity on
January 9, 2003 with a possible continued hearing to January 23, 2003, filing of the
Order of Possession by January 24, 2003, and earliest date for possession being April
9,2003.
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At 2:37 p.m., President Nejedly opened the hearing to receive comments on and
consider adoption of a Resolution of Necessity for the acquisition of public easements
for sanitary sewer purposes and authorizing eminent domain proceedings for the Wendt
Ranch Offsite Sewer Project, DP 5436.
Mr. Jim Richards, 1463 Lawrence Road, Danville, provided a copy of his comments,
which was entered into the record, and addressed the Board, objecting to the proposed
Wendt Ranch Offsite Sewer Extension, DP 5436. Mr. Richards stated his primary
concern is that the proposed sewer line will be 27 feet from his fence line and 40 feet
from his water well. Mr. Richards stated that he does not think that a sewer should be
located that close to a water well and questioned if there are regulations on that. Mr.
Richards stated that he is an engineer himself and he questions the infallibility of any
system. It is his job to design environmental and biological detection sensors at
Lawrence Livermore National Labs. Mr. Richards stated that his wife is a veterinarian
and she is also concerned about having a sewer so close to a well.
Mr. Richards stated that his second concern deals with whether the easements sought
are necessary, particularly the temporary construction easement. Mr. Richards stated
that his concern is with the extent of disruption in the area of the temporary easement.
Next, Mr. Richards stated that there have been substantial changes and new
information regarding the Wendt Ranch development since the Environmental Impact
Report (EIR) was done in 1996. Mr. Richards stated that a subsequent EIR should be
done. In addition, the 1996 EIR failed to adequately address the issue of the sewer line.
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Mr. Richards stated that the only mention was of temporary construction; the issue of
the water well was omitted from the EIR even though he had sent two letters to the
County during the EIR process. To summarize, Mr. Richards stated that he prefers that
this project not be put in front of his house and he assumes anything damaged in
construction would be replaced as indicated in the contract received from the District.
Mr. Richards stated that he continues to worry about contamination of his water well;
and although he knows he can connect to the city water system, he does not want to do
that.
In response to questions from the Board, Mr. Richards stated that his home is currently
on a septic tank. The home is on a five-acre parcel and the leach field is more than 250
feet from the water well. Mr. Richards indicated that he did not know the depth of the
water well. Mr. Richards stated that a water softener is used to improve the quality of
the water but it gives it a salty taste. Mr. Richards stated that he has not had the water
well tested.
Ms. Christa Freihofner addressed the Board, in support of the remaining two property
owners. Ms. Freihofner stated that the District Board staff reports are very thorough,
but she questioned how the Board can make a conscientious decision concerning any
route without seeing the properties. Ms. Freihofner stated that she talked to Dr. Siu this
morning and he indicated that he prefers Alternative Two, the one that goes in front of
his house.
Member Menesini stated that he has visited Dr. Siu's property and discussed Dr. Siu's
concerns with him. Member Menesini stated that he has not yet visited Mr. Richards'
property.
In response to questions from Member Menesini, Mr. Miyamoto-Mills stated that the
recommended Alternative One would be designed for the proposed alignment at the
base of the steep grade. Alternative Two was the initial proposal made to the Sius in
May 2000. At that time, it was noted that Alternatives One and Three could also
achieve the technical goals of the project. At that time, the Sius directed staff to prepare
an offer on Alternative One as their preferred alternative. Then in May 2002, Dr. Siu
stated that he preferred alternative Five.
Member Nejedly stated that the letter from Dr. Siu's attorney stated they would not
delay the start date. Member Nejedly thanked Mr. Richards for attending this meeting
and providing his comments. Member Nejedly stated that he has visited the area but he
was not aware of the issue concerning the Richards/Brockman water well. Dr. Siu has
requested various options and has changed his mind several times. Member Nejedly
stated that it is very difficult for the Board to get a grasp on Dr. Siu's preferences. This
matter has been through the EIR process and it has been approved by the appropriate
agencies. It is now up to the District to provide service in the best way possible for the
health of the public.
Member Lucey questioned whether there is any reason to put this off for another two
weeks. Mr. Richard G. Rypinski, Special Counsel for the District, advised that it is
always prudent to allow the property owner to be heard, and it is clear by agreement in
the letter from Dr. Siu's attorney Thomas Nagle that continuing the hearing for two
weeks will not extend the date for possession.
Member Menesini stated that the District and the Board have been very patient with Dr.
Siu in this process. Member Menesini stated that he is willing to wait one more session
but not any longer. Dr. Siu has had multiple chances to express his position and he has
appeared before this Board several times. Member Menesini stated that he himself is
an environmental scientist and understands the issues raised by Dr. Siu. Member
Menesini stated that the only reason he would vote for Alternative One is because it is
farther from the pond and environmentally sensitive areas. Member Menesini stated
that he has met with Dr. Siu and he is ready to make a decision. This cannot be
delayed beyond the next Board Meeting date.
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Mr. Rypinski requested that the letter from Mr. Thomas Nagle dated January 6, 2003 be
entered as part of the record in this matter. As stated in the letter from Mr. Nagle,
January 23, 2003, is the final opportunity for Dr. Siu to be heard.
There being no further comments, at 3:10 p.m. President Nejedly continued the hearing
to 2:00 p.m. on January 23, 2003 for final comments from Dr. Siu. President Nejedly
thanked Mr. Richards for coming to the hearing and voicing his concerns.
6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
None
7. BIDS AND AWARDS
a.
DECLARE BID SUBMITTED BY FIRE & SECURITY ALARM COMPANY AS
NONRESPONSIVE AND AUTHORIZE AWARD OF A CONSTRUCTION
CONTRACT TO DEL MONTE ELECTRIC COMPANY, INC. FOR THE
TREATMENT PLANT FIRE ALARM PANEL IMPROVEMENTS. DP 6155
Mr. Batts, General Manager, stated that the scope of work for the Treatment Plant Fire
Alarm Panel Improvements Project consists of design and construction of a
replacement fire alarm control panel for the existing treatment plant fire alarm system.
Spare parts for the existing fire alarm control panel are no longer available. On
December 17, 2002, sealed bids were received and opened. Three bids, ranging from
$50,000 to $72,500, were received. Fire & Security Alarm Company, the apparent low
bidder, failed to submit the appropriate bidding documents. Staff would recommend
award to Del Monte Electric Company, the lowest responsive and responsible bidder.
Mr. Kenton L. Aim, Counsel for the District, stated that the package submitted by Fire &
Security Alarm Company does not meet the criteria set forth in the bid documents; and
therefore, the District cannot accept the bid.
Following discussion of the public bidding process and providing a contact person to
respond to questions from small contractors or potential bidders that are not familiar
with the public bidding process, it was moved by Member Lucey and seconded by
Member Menesini, that the bid submitted by Fire & Security Alarm Company be
declared nonresponsive; and that award of a construction contract in the amount of
$66,709 for the Treatment Plant Fire Alarm Panel Improvements Project, DP 6155, be
authorized to Del Monte Electric Company, Inc., the lowest responsive and responsible
bidder. There being no objection, the motion was unanimously approved.
7. BIDS AND AWARDS
a.
GENERAL MANAGER
1)
Mr. Batts, General Manager, stated that due to the rains in December,
completion of the San Ramon Pumping Station exterior has been delayed
until the end of January. No adverse contact has been received from San
Ramon City staff regarding this. There have been no public contacts
concerning this project in the period since the last Board meeting. Mr.
Batts introduced Mr. William E. Brennan, Capital Projects Division
Manager, who distributed and reviewed San Ramon Projects Status
Report No.7. Mr. Brennan stated that as Mr. Batts indicated, the rains
have caused the contractor a short delay, but work is getting back on
track. The biggest remaining design issue is getting PG&E power from
the street. Mr. Brennan showed photographs and described the
progress.
2)
Mr. Batts, General Manager, stated that the California Association of
Sanitation Agencies (CASA) has been representing the interests of its
members in several lawsuits, and is becoming more active in litigation on
environmental matters that could affect its membership. CASA has also
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established a biosolids program. These programs are funded by voluntary
member donations. The suggested level of funding for an agency the size
of the District is $15,000 to $20,000 per program. It had been suggested
that the Board consider funding at a lower level because while these
programs are of interest to the District they are of lesser importance
although they do have a statewide pertinence. Mr. Batts suggested that
this item be brought back to the Board for consideration after the January
CAS A conference where those Board Members attending will have an
opportunity to learn more about the programs.
3)
Mr. Batts, General Manager, stated that the State of California budget
deficit is $34.8 billion. There has been a 34 percent increase in State
spending. Changes in the economy and problems with the California tax
structure, have resulted in less revenue. The loss of the special districts'
portion of property tax revenue is not entirely unexpected. Compared to
other agencies, the District is in a much better position to respond. At the
January 30 Board Workshop, various budget and rate scenarios will be
presented for Board consideration. In addition to cost cutting and
containment, the strategy will require moderate, long-term rate increases.
Mr. Batts reviewed the State budget cycle ranging from a $14.1 billion
deficit in 1991-1992 to as much as a $12.3 billion surplus in 2000-2001 to
the $34.8 billion deficit in 2003-2004. In Governor Davis' speech
yesterday he indicated that he would like a reforming tax structure and the
ability to make mid-year cuts. A new State small business advocate is
proposed and the Public Utilities Commission is to have an Office of
Economic Development. The State is looking at business tax credits and
wants to generate more high-tech jobs. To date no new budget or
program cuts have been announced. Programs are being defended and
the Governor is talking of creating 500,000 jobs over the next four years.
New taxes are expected. In closing, Mr. Batts noted that Contra Costa
County is predicting a $50 million to $100 million shortfall.
4)
Mr. Batts, General Manager, stated that he is very pleased to announce to
the Board that the Plant had no National Pollutant Discharge Elimination
System (NPDES) permit violations in December. This makes 2002
another violation-free year, and the fifth consecutive year without
violations. This means that the District will receive the Association of
Metropolitan Sewerage Agencies (AMSA) Platinum Award at the annual
AMSA Conference in Washington, D.C. in May 2003. Over the past five
years, the Plant has processed over 75 billion gallons of wastewater with
no violations. The District's Laboratory has conducted almost 200,000
compliance analyses during this time period.
Mr. Batts stated that the AMSA Platinum Award is a great achievement for
the District. AMSA agencies have significantly fewer violations than non-
AMSA agencies; and of the 324 AMSA agencies, only 14 received this
award last year. The District will not be eligible for another Platinum
Award until 2007, as we will need another five consecutive years without a
violation.
5)
Mr. Batts, General Manager, announced that the annual Board Financial
Planning and Policy Workshop has been set for 2:00 p.m. on Thursday,
January 30, 2003 in the Multipurpose Room. Information will be
distributed for the Board's review in advance of the workshop.
6)
Mr. Batts, General Manager, announced that the Moraga/Orinda
Crossroads Pumping Stations pumps are still performing unsatisfactorily.
At Orinda Crossroads Pumping Station the pumps exceed the District's
vibration specification at the very high end speed and there appears to be
some internal damage to the pumps. At the Moraga Pumping Station the
pumps vibrate excessively at the low speed end. While there has been
some improvement, Morris Pumps was put on notice via letter on
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December 12, 2002 that the District would pursue other methods of
correcting the problems at the expense of Morris and GSE, the contractor.
Morris responded in a letter dated December 30,2002, that they proposed
an extension of the warranty to three years at the Orinda Crossroads
Pumping Station based on the improved performance; and they will
provide one complete spare pump rotating assembly and a credit of
$5,000. Morris proposes to replace all the pumps at the Moraga Pumping
Station. The District has given Morris until January 16, 2003 to provide a
submittal and details on the replacement pumps. In any case, the District
is pursuing alternative pumps and has told Morris we are doing so.
Mr. Batts stated that Cornell Pumps and Fairbanks Morse Pump
submittals have been received, although neither proposal specifically
mentions the 0.3 ips peak vibration specification. The Fairbanks Morse
submittal is $471,000 for six pumps. The Cornell submittal is substantially
less, $209,000. The District must now perform a technical comparison.
Next week, Cornell Pumps plans to visit the pumping stations to conduct a
site inspection. Staff has emphasized to both active vendors that they
must guarantee to meet the vibration specification and that performance
bonds may be required. They are both understandably cautious.
7)
Mr. Batts, General Manager, announced that during the rain there were
several minor overflows; and last night, there was a major overflow event
at the John Schueller residence at 3281 Brookside Avenue in Martinez.
b.
COUNSEL FOR THE DISTRICT
1)
Mr. Kenton L. Aim, Counsel for the District, announced that his law firm,
Meyers Nave, has moved to a new location in Oakland. Mr. Aim
distributed a card with the new address and telephone number.
2)
Mr. Aim, Counsel for the District, provided an update on the status of the
Alamo Creek lawsuit. All parties have agreed to allow this matter to trail
other matters on Alamo Creek. The lawsuit in which the District is
involved deals with California Environmental Quality Act (CEQA) and the
other lawsuits deal with the actual annexation.
c.
SECRETARY OF THE DISTRICT
None
d.
BOARD MEMBERS
1 )
President Nejedly presented the Board Committee assignments for 2003
as follows:
Budqet and Finance Committee
.
Gerald R. Lucey
James A. Nejedly
Personnel Committee
.
Mario M. Menesini
James A. Nejedly
Capital Proiects Committee
.
Parke L. Boneysteele
Gerald R. Lucey
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Household Hazardous Waste Committee
.
Gerald R. Lucey
Barbara D. Hockett
Outreach Committee
.
Mario M. Menesini
Parke L. Boneysteele
.
First named Member will serve as Committee Chair.
Board Liaison to Cities and Countv
Concord, Pacheco
James A. Nejedly
Danville, Alamo & San Ramon
Barbara D. Hockett
Lafayette, Walnut Creek
Parke L. Boneysteele
Martinez, Contra Costa County,
Pleasant Hill Mario M. Menesini
Orinda, Moraga
Gerald R. Lucey
California Special Districts Association
Contra Costa Countv Chapter
Mario M. Menesini
Parke L. Boneysteele - Alternate
Friends of the San Francisco Estuarv
Mario M. Menesini
Sanitation and Water AQencies of Contra Costa Countv
Barbara D. Hockett
Gerald R. Lucey - Alternate
2)
Member Menesini announced that the January 27, 2003 Environmental
Alliance Discussion Series will feature Mr. Phillip Ramsey, U.S.
Environmental Protection Agency, Region 9, Superfund Project Manager,
discussing the Concord Naval Weapons Station Environmental Cleanup
Work and Compliance with Superfund. The meeting begins at noon at the
John Muir National Historic Site, 4202 Alhambra Avenue, Martinez.
BREAK
President Nejedly declared a recess at the hour of 3:48 p.m., reconvening at the hour of
4:00 p.m., with all parties present as previously designated.
9. ADMINISTRATIVE
a.
CONSIDER NEAR TERM DISTRICT RESPONSE TO STATE OF CALIFORNIA
BUDGET CRISIS
Mr. Batts, General Manager, stated that at the last Board Meeting he reported to the
Board on the State budget crisis and the expected impact on District revenues. The
Board directed the General Manager to present recommendations for near term actions
to respond to the expected revenue loss. The position paper before the Board presents
several recommendations for an interim strategy that could be implemented during the
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second half of the current fiscal year. A longer term strategy will be part of the
discussion at the January 30 Board Financial Planning and Policy Workshop. Mr. Batts
stated that he has already met with the District's management team to discuss the
financial situation, and he is planning meetings with the various work groups later this
month and in early February so that every District employee will have an opportunity to
hear directly from the General Manager about this issue.
Mr. Batts presented the following near term strategy proposals for responding to the
anticipated loss of ad valorem tax revenue:
.
Conditional Hiring Freeze - Immediately initiate a hiring freeze. Filling any
position would be conditional upon management justifying the critical need
of the position to the Board Personnel Committee. Board concurrence
would be needed to initiate any recruitment process. Mr. Batts noted that
there are currently 17 unfilled positions. Nine of those are budgeted.
Roughly $1 million in salaries and benefits would be saved by not filling
those positions.
.
Review of Temporary and Contract Employees - The General Manager
will review all temporary positions with the Board Personnel Committee in
January or as soon thereafter as a meeting can be arranged. Temporary
and contract employees have been used to fill needed short term positions
critical to the District. The Board Personnel Committee would be
requested to provide guidance on whether critical need is being filled. The
retention of any existing temporaries, if supported by the Board Personnel
Committee, would be made known to the full Board. Any proposed new
temporary or contract employees would require Board Personnel
Committee approval. The use of summer students and co-ops would
continue. Mr. Batts noted that there are currently seven temporary
positions and one contract employee.
.
Reduction in Non-Critical Overtime - Department Directors would increase
scrutiny of overtime. Overtime would be limited to critical operations and
customer service functions. Shift relief and staffing accounts for much of
the overtime. The General Manager would provide an overtime report to
the Board on a regular basis. The overtime report would be against the
budgeted overtime line item. Mr. Batts noted that December overtime is
abnormally high due to several long holidays where Operators on shift get
overtime.
Member Lucey asked if there was a way to separate necessary, scheduled overtime
from other overtime. Mr. Batts stated that he will try to provide that information to the
Board.
.
Curtail Travel and Conferences - Department Directors would oversee
and work to reduce travel and conference expenses. The General
Manager would report to the Board on planned out-of-state travel. The
General Manager would report savings to the Board.
Member Boneysteele questioned the significance between in-state and out-of-state
travel and conferences. Mr. Batts indicated that in many cases the costs are higher for
out-of-state travel and conferences. Member Boneysteele stated that the Bay Area is
one of the highest cost areas. Member Boneysteele stated further that he does not see
the benefit in eliminating out-of-state travel and conferences, and he thinks it is
essential that training continue especially because of the number of new employees.
.
Reduce Operating Costs - Department Directors would reevaluate
budgeted expenses and purchases through June 2003. Some savings
can be realized, but they are a minor part of the O&M Budget. The
General Manager would report savings to the Board.
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.
Defer Major Maintenance - The Operations management team would
identify and analyze possible deferrals. Analysis would include current
and future costs, customer service issues, and operating risks. Permit
compliance and safety would continue to be central issues. Deferrals
would be decided on a case-by-case basis. The General Manager would
report savings to the Board.
.
Postpone Capital Projects - The Capital Program is the most flexible
instrument to balance cost and workload issues. Engineering and
Operations management would reevaluate projects to identify possible
deferrals. Critical factors would include future operating or compliance
risks, the need to interface with other agencies, future cost escalation,
staff availability, costs, and other appropriate items. Up to $4 million
would be deferred in the current fiscal year. Evaluations would be
presented at the January 30 Board Financial Planning and Policy
workshop and the Capital Improvement Budget (CIB) workshop later in the
spring.
.
Capital Project Cost Savings - A value engineering program would be
used to review current projects for cost savings, alternatives, and
reductions in scope. The Board Capital Projects Committee would be
given updates. Savings would be detailed in position papers. CIB reviews
would be used to show accumulated savings. Mr. Batts noted that there
has already some substantial work has been done on value engineering
both the Outfall and Aeration Projects.
.
Other Measures - Staff would actively look for other cost savings.
Proposals would be brought to the Board. Probable reductions would
result in customer service and public outreach, but staff would give high
priority to customer service issues. Additional cost recovery for services
provided to the public and developers would be considered. A fees and
charges review would be included in the spring budget process.
.
Delay Contract Negotiations? - Consider asking the employee bargaining
units to delay negotiations for six months or longer. At that time the
financial position might be clearer. This would require cooperation of all
employee bargaining groups.
Mr. Batts stated that these are possible short term strategies. Long term strategies will
be presented at the Board Financial Planning and Policy workshop on January 30.
Member Lucey thanked Mr. Batts for putting these short term strategies together so
quickly.
Mr. Tad Pilecki, representing the Management Support/Confidential Group (MS/CG)
addressed the Board. Mr. Pilecki introduced the MS/CG Executive Committee: Ruth
Bennett, Rich Boylan, Liz Charlton, Kim Greer, Ken Grubbs, Michael Penny, Dave
Robbins, Ted Smith, and Ba Than. Mr. Pilecki distributed and read a prepared
statement as follows. MS/CG has over the years demonstrated its willingness to work
with the Board and management to overcome challenges that have faced the District.
Central San is a better organization because of that teamwork. The membership is well
aware of the financial issues facing our District as a result of the State of California
budget crisis and our probable loss of ad valorem tax revenue. The membership is also
very concerned with how our District responds to this situation, both near term and long
term. The membership feels that the quality of employee work life, career development,
employee morale, our pride in Central San, and our economic well being are in the
balance.
Mr. Pilecki stated that the financial crisis facing the District was not caused by the Board
of Directors, its management team, the employees or supervisors. To the contrary,
since the loss of ad valorem tax revenue in 1992 the District has worked diligently to
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control costs and still provide our public with a high level of customer service. The
District asked for MS/CG's support and MS/CG willingly gave it. Since 1992 the District:
.
Did not raise rates for six straight years
.
Reduced the number of employees from 270 to 240, an 11 percent
reduction. Taking into account the 14 employees added for new programs
such as Household Hazardous Waste, Storm Water Pollution Prevention,
MIS, Recycled Water, and Public Outreach, the reduction is actually 44
employees or 16 percent.
.
Cut the Capital Improvement Budget from $28 million in 1992 to $23
million today, a reduction of almost 18 percent. Taking into account the
time value of money, the reduction is almost 40 percent (based on
Engineering News Records).
Mr. Pilecki stated that the employees participated in these budget cuts through work
redesign, continuous improvement, strategic planning, and moderate wage and benefit
requests. Employees became more efficient in doing their jobs, cross trained, and
learned new skills, and as the General Manager Mr. Batts would say, became a high
performance organization. Employees truly accomplished more with less.
Mr. Pilecki stated that the position paper before the Board today is not just about dollars
and cents. It is also about people, customer service, and the District's reputation in
protecting the environment. Our District has developed an overall program that has
proven to be highly successful.
Mr. Pilecki stated that the MS/CG membership asks the Board to carefully consider the
consequences of reducing the budgets in the following four areas:
1. The environment that is our mission to protect. We have all worked hard
to protect it and our efforts have resulted in our being eligible for the AMSA Platinum
Award for five years of no permit violations.
2. Our capital program that funds the improvement/renovations of our aging
infrastructure. Given the more stringent regulatory requirements, our aging
infrastructure and the recent results of our corrosion and small sewer TV inspections,
adequate funding is essential. The District's potential exposure is increasing and now
may not be the time to cut funding.
3. The customer service that we have worked hard to improve and expand.
Reducing staff, equipment budgets, and overtime may very well impact our ability to
continue to provide high quality customer service.
4. Our investment in our employees. The District has worked hard to attract,
train, and retain highly qualified and versatile employees. Their effort, in large part, is
the reason for the District's success. Our employees are also residents of the State of
California and they and their families are sure to be impacted heavily by the
unprecedented State budget crisis.
In conclusion, Mr. Pilecki stated that MS/CG will continue to do its job to support the
Board and management and accomplish the District's mission, while maintaining quality
customer service. MS/CG will continue to look for new ways to reduce costs and
become more efficient as they have over the last ten years.
Mr. Pilecki asked that as the Board begins its deliberation, consideration be given to
what kind of an organization the Board wants the District to be in five to ten years.
MS/CG asks that the Board also consider the points MS/CG raised: protection of the
environment, the need to maintain our aging infrastructure, increased customer service
needs, and our ability to attract and retain highly qualified employees to continue our
award winning performance.
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Mr. Pilecki stated that MS/CG asks the Board to consider the following MS/CG
recommendations:
1. Delay action on the recommendations in this position paper until after the
Board receives the important financial information at the January budget workshop; and
2.
increased.
Raise rates appropriately since the necessary cost of doing business has
Mr. Pilecki stated that Central San did not create this problem, but we do have to work
together to resolve it.
Mr. David Rolley, addressed the Board representing Public Employees Union Local 1
and the Central Contra Costa Sanitary District Employees Association (CCCSDEA).
Mr. Rolley stated that the suggestion to delay negotiations caught his attention. Mr.
Rolley stated that while he understands the thought behind the suggestion, he wants to
convey that it would be very problematic for himself and many of the CCCSDEA
members to have that happen. Mr. Rolley stated that the better idea would be to
engage with the District management and work on this together to solve the problems.
We all need to pitch in to find ways to solve the problems. Mr. Rolley stated that he is
looking into something called VEBA's, a retirement health care savings plan. Mr. Rolley
stated that rather than delaying negotiations, we need to sit down and begin
negotiations.
Mr. Rolley stated that with regard to the other things suggested in the position paper, he
would be very careful about things like postponing maintenance. Mr. Rolley stated that
he wants to see the District continue to be a first class operation, and he would not want
something to break or someone to be injured. Mr. Rolley stated that this is not
insurmountable. We can get through it together. The District is not in as bad a position
as some of the other agencies Local 1 represents. In the final analysis, we can raise
rates to take care of the loss of ad valorem tax revenue. The county and schools do not
have that option.
Mr. Carl Doolittle, Business Agent for Public Employees Union Local 1, addressed the
Board, cautioning the Board not to set up a situation for catastrophe. Putting together a
hiring freeze, reducing overtime and deferring maintenance is setting up a situation
where the District will face the likelihood of violations of regulations. The employees are
stressed. The employees must pay more for additional retirement costs. It has been
three years since the last negotiated contract. Local 1 is not interested in deferring
contract negotiations at this time. Local 1 wants to set down and help work out these
problems. Mr. Doolittle stated that the Board should look at the long term not the short
term. Mr. Doolittle stated further that it was pointed out that it is important to attract
good employees. The talent the District has now can leave and seek jobs in other
places. The District must have good wages, hours, and working conditions. Mr.
Doolittle asked the District not to cut its own throat by trying to do the quick fix.
Member Lucey asked if MS/CG had a position with regard to putting off negotiations.
Mr. Pilecki stated that is something MS/CG would meet and confer on. If retroactivity
and the like were part of the package, that is something that MS/CG would be willing to
talk about. The increased cost of living adjustment for retirement will impact employees.
Mr. Pilecki stated that MS/CG would be willing to talk but the Board must realize that
MS/CG must take care of its members' responsibilities to their family members.
Member Lucey stated that delaying negotiations would be beneficial because both the
District and the bargaining units would understand the financial issues. With regard to
employees paying additional retirement costs in July, Member Lucey stated that the
District must pay an additional $1.2 million in annual retirement costs beginning in
January and that cannot be negotiated. The District will likely loss $7 million in ad
valorem tax revenue and must pay an additional $1.2 million in retirement costs that
were not expected. Member Lucey stated that hopefully we can work it out, but it will be
a challenge.
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Member Boneysteele stated that the reason that deferring negotiations was suggested
was that the Board does not know what the financial situation will be. The Governor's
outline in his speech was not specific. The District can raise the Sewer Service Charge
but the general public will not be very receptive to that.
Member Hockett stated that she works in the private sector. Health care providers are
seeing many cuts. Her employer can no longer contribute to the 401 (k) Plan. Many
people in the private sector are losing benefits and will never enjoy the benefits Central
San employees receive.
Mr. Rolley stated that the majority of District employees appear to be well compensated
and have good benefits, but some Central San employees are not making it. That is
why Local 1 wants to get into negotiations as soon as possible and try to help the
District resolve these problems.
President Nejedly stated that the District is considering a hiring freeze and looking at
deferring capital projects. There is always something that can be done. We all must
bite the bullet. In the short term there are things that can be done or at least
investigated to save some money, but the District must keep running. There are
hundreds of thousands of people the Board must answer to. It is very difficult to plan or
negotiate when it appears likely the District will lose $7 million. That is where the notion
of delaying negotiations came from. It was brought up in the best interests of the
employees, management, and the Board. If we know we have ad valorem tax revenue,
it is to our advantage in negotiations.
Mr. Rolley stated that the District could go forward with negotiations under the
assumption that ad valorem tax revenue will be lost and then have a re-opener if the
District retains its ad valorem tax revenue.
Mr. Batts indicated that a closed session has been scheduled later in the agenda to
allow the Board to discuss some of these options.
Member Menesini thanked Messrs. Pilecki, Rolley, and Doolittle for their excellent
presentations and input.
Mr. Batts stated that staff will be presenting a great deal of information at the January
30 Board Financial Planning and Policy workshop. The near term actions will continue
by staff pending Board decision at the January 30 Board workshop with regard to the
strategies presented.
10. CORRESPONDENCE
a.
RECEIVE LETTER DATED DECEMBER 18,2002, FROM MR. AL BALTZ OF
ALAMO, TO MR. TIFTON GANTT, MAINTENANCE SUPERVISOR,
EXPRESSING HIS APPRECIATION AND THANKS FOR A JOB WELL DONE
TO THE CSO MAINENANCE DIVISION FOR THE PROFESSIONAL HANDLING
OF AN ISSUE OF ACCESS TO A MANHOLE IN HIS BACKYARD, ESPECIALLY
NOTING THANKS TO MAINTENANCE CREW LEADER STEVE SAUTER,
ADMINISTRATIVE SECRETARY ROSEANNA BARRETT, MAINTENANCE
CREW LEADER RON GALLOWAY, CONSTRUCTION EQUIPMENT
OPERATOR CHRIS KEITH, AND MAINTENANCE CREW MEMBER I HAMID
(ROD) TAHRANt
Receipt of the letter dated December 18, 2002 from Mr. AI Baltz was noted, and
Maintenance Supervisor Tifton Gantt, Maintenance Crew Leader Steve Sauter,
Administrative Secretary Roseanna Barrett, Maintenance Crew Leader Ron Galloway,
Construction Equipment Operator Chris Keith, and Maintenance Crew Member I Hamid
(Rod) Tehrani were commended for their efforts.
b.
RECEIVE LETTER POSTMARKED DECEMBER 23, 2002 FROM MS. PEGGY
WILSON AND FAMILY THANKING THE DISTRICT FOR THE HOUSEHOLD
HAZARDOUS WASTE COLLECTION FACILITY REUSE PROGRAM
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Receipt of the letter from Ms. Peggy Wilson and family was noted.
c.
RECEIVE LETTER POSTMARKED DECEMBER 23, 2002 FROM LOWELL AND
MAE RODEO THANKING THE DISTRICT FOR THE HOUSEHOLD
HAZARDOUS WASTE COLLECTION FACILITY REUSE PROGRAM
Receipt of the letter from Mrs. And Mrs. Lowell Rodeo was noted.
11. APPROVAL OF MINUTES
a.
MINUTES OF DECEMBER 5, 2002
It was moved by Member Boneysteele and seconded by Member Hockett, that the
minutes of December 5,2002 be approved as presented. There being no objection, the
motion was unanimously approved.
12. APPROVAL OF EXPENDITURES
a.
REPORT OF JANUARY 6, 2003 BUDGET AND FINANCE COMMITTEE
MEETING
The meeting notes of the January 6, 2003 Budget and Finance Committee were
distributed.
b.
EXPENDITURE LIST DATED JANUARY 9, 2003
It was moved by Member Boneysteele and seconded by Member Lucey, that the
Expenditure List dated January 9, 2003, including Self Insurance Fund Check Nos.
101965-101966, Running Expense Fund Check Nos. 142269-142590, and Sewer
Construction Fund Check Nos. 25193-25244, be approved as recommended. There
being no objection, the motion was unanimously approved.
13. BUDGET AND FINANCE
a.
RECEIVE NOVEMBER 2002 FINANCIAL STATEMENTS
Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance
(O&M) for the month of November 2002, noting that expenditures were $234,000 less
than budget, representing a 7 percent favorable variance. Year-to-date O&M expenses
were $1.8 million less than budget, representing an 11 percent favorable variance.
Year-to-date O&M revenue was $1,380,000 or $161,000 greater than budget.
Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were
$5,000,000, $5.5 million less than expenditures of $10,455,000. Ms. Ratcliff noted that
these figures do not include the Dougherty Valley. Approximately $3 million was
expended on the Dougherty Valley and recovered from the developers.
Ms. Ratcliff reported that the District's temporary investments were held in the District's
Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF
account through November 2002 was 2.3 percent.
President Nejedly declared that the November 2002 Financial Statements were duly
received.
14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None
15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS
None
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16. CLOSED SESSION
INITIATION OF LITIGATION
a.
The closed session to consider initiation of litigation pursuant to Government Code
Section 54957.6(c), two potential matters, was not held.
b.
LABOR NEGOTIATIONS
With respect to labor negotiations, the closed session was held pursuant to Government
Code Section 54957.6 to meet with designated representatives prior to and during
consultations and discussions with representatives of employee organizations regarding
the salary, salary schedules or compensation paid in the form of fringe benefits to
employees in order to review its position and instruct its designated representatives.
The District's negotiators are Labor Counsel Allison Woodall, Director of Administration
Randall M. Musgraves, and Human Resources Manager Cathryn Freitas, and the
pertinent employee organization is the Central Contra Costa Sanitary District
Employees Association Local 1.
At 4:48 p.m., President Nejedly declared the closed session to discuss labor
negotiations pursuant to Government Code Section 54957.6 as noted above. At 5:18
p.m., President Nejedly concluded the closed session and reconvened the meeting into
open session.
17. REPORT OF DISCUSSIONS IN CLOSED SESSION
No decisions were made or votes taken in closed session which require reporting at this
time.
18. ADJOURNMENT
There being no further business to come before the Board, President Nejedly adjourned
the meeting at the hour of 5:19 p.m., to reconvene at 2:00 p.m. on January 23,2003 for
an Adjourned Regular Board Meeting.
~ ~
Pr dent of the Board of rectors,
entral Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGND:
,.RO TEM
Secretary of the Ce ral ontra Costa
Sanitary District, County of Contra
Costa, State of California
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