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HomeMy WebLinkAboutBOARD MINUTES 02-06-03 131 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 6, 2003 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 February 6, 2003. President Pro T em Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Hockett, Boneysteele, Lucey ABSENT: Members: Nejedly President Nejedly had advised that he would be unable to attend this meeting and had requested to be excused. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. President Pro Tem Lucey stated that he has asked Senior Buyer Tammy Fong to sing the National Anthem in place of the Pledge of Allegiance to the Flag at the next Board Meeting. The District is fortunate to have many talented people. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF CALIFORNIA WATER ENVIRONMENT ASSOCIATION, SAN FRANCISCO BAY SECTION ANNUAL AWARDS FOR 2002 Mr. Charles W. Batts, General Manager, acknowledged the following District employees for being nominated for California Water Environment Association (CWEA) San Francisco Bay Section awards for 2002. They represent the excellence in an outstanding organization of high performance employees: . Maintenance Technician of the Year - Dean McNeely . Operator of the Year - Keith Gore . Electrical and Instrumentation Person of the Year - Don Parker Mr. Batts stated that Collection Systems Cleaning Section Supervisor Paul Louis received the Andy Stamatelos Memorial Service Award. This award is presented to individuals for their dedication and activities in promoting the CWEA San Francisco Bay Section. Mr. Louis is currently the Chairperson of the Awards Committee for Collection Systems and could not be here today. This item will be held over to a future Board Meeting. Mr. Batts stated that the District will also be presented with the awards for Treatment Plant of the Year and Collection System of the Year for large agencies by Mr. Leo Gonzalez, recently hired Pumping Stations Supervisor. Mr. Gonzalez is the immediate past President of the CWEA San Francisco Bay Section. Mr. Batts stated that he believes that this is the first time that one agency has received both of these awards in 02 06 03 132 the same year. These awards are the recognition of excellence by our peers in the industry who appreciate the efforts needed to be a leader in this field. Mr. Batts introduced Mr. Leo Gonzalez, immediate past President of the CWEA San Francisco Bay Section, who asked Chemist II Sue Hasselwander, Utility Worker Chuck Ortega, Plant Operator II Dave Taylor, Maintenance Crew Leader Dante Marchetti, Maintenance Crew Leader Rick Powell, and Pumping Stations Superintendent Steve Considine to come forward and present the CWEA San Francisco Bay Section 2002 Treatment Plant of the Year Award for Large Agencies and the CWEA San Francisco Bay Section 2002 Collection System of the Year Award for Large Agencies to the Board of Directors. Mr. Gonzalez recognized the District and its employees for their outstanding efforts and thanked the Board of Directors for their support of the CWEA San Francisco Bay Section. President Pro Tem Lucey accepted the awards and stated that it is truly impressive to receive both awards. President Pro T em Lucey commended staff for these two major awards recognizing the outstanding work of the District's two operating divisions. 4. CONSENT CALENDAR At the request of Mr. Ricardo Hernandez, Engineering Assistant III, Item 4.c. was removed from the Consent Calendar for discussion. It was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through d. excluding Item c., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution Nos. 2003-005 throuqh 2003-215 were adopted, accepting public sewer improvements and Grants of Easements for Rossmoor Development Project, Phase 7, DP 1001 and DP 5502, Parcels 134,136,137,141,142,144, 145, 146, 147, 148, and 149; and staff was authorized to record said Grants of Easement with the Contra Costa County Recorder. Motion approved on the following vote: AYES: Members: Hockett, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Nejedly b. Resolution No. 2003-016 was adopted, setting March 6, 2003 at 2:00 p.m. as the date and time for a public hearing to consider the establishment of the EI Pintado Road Contractual Assessment District No. 2002-8 pursuant to California Constitution, Article XIII D, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24. Motion approved on the following vote: AYES: Members: Hockett, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Nejedly d. Assistant Engineer Nathan W. Hodges was granted a one-step increase of his basic salary effective January 23, 2003, as the registration differential salary merit increase provided for in the Memorandum of Understanding (MOU) between the District and the Management Support/Confidential Group. Motion approved on the following vote: 02 06 133 AYES: Members: Hockett, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Nejedly Mr. Batts recognized Mr. Hodges, who was present in the audience for another agenda item, on successfully passing the Professional Engineer examination. At this time, President Pro Tem Lucey proceeded to Item 4.c., which was removed from the Consent Calendar for discussion. A memorandum and informational packet from Mr. Ricardo Hernandez, Engineering Assistant III, was distributed and Mr. Hernandez addressed the Board. Mr. Hernandez stated that he was recently made aware of the contents of the position paper and he feels that such an item would be better served if it were discussed in closed session unless there is something that prevents that. Mr. Hernandez stated that he also has a concern for his confidentiality rights with the way in which the position paper was prepared and presented to the Board. Mr. Hernandez requested that the position paper be moved to closed session. President Pro T em Lucey stated that the position paper before the Board for consideration is a Consent Calendar item to simply allow the Board to authorize appointment of an arbitrator. No other decision is being made. This is not the appropriate time to argue the merits or demerits of the issue but simply to appoint an arbitrator. Mr. Hernandez stated that he understands that but he wants to clarify some of the issues raised in the position paper and he wants to raise his confidentiality rights in this case because it is a personnel matter. Mr. Kenton L. Aim, Counsel for the District, stated that the closed session scheduled later in the agenda is for litigation. The two areas relating to personnel that may be discussed in closed session are labor negotiations and public employee evaluation. Mr. Hernandez asked if the Board understands his concern with confidentiality? President Pro Tem Lucey stated that he does not. Mr. Hernandez filed a grievance in accordance with the Memorandum of Understanding between the CCCSD Employees' Association, Public Employees' Union, Local 1 and the District. Mr. Hernandez has requested to have this matter heard by an arbitrator. The Board is prepared to grant that. The arbitrator is a neutral third party who will advise the Board. It was moved by President Pro T em Lucey and seconded by Member Hockett, that staff be authorized to secure the services of an arbitrator in accordance with the District's grievance appeal procedures in the matter of the grievance of Mr. Ricardo Hernandez, Engineering Assistant III. There being no objection, the motion was approved with President Nejedly being absent. President Pro Tem Lucey stated that the District will be appointing a neural third party. President Pro Tem Lucey advised Mr. Hernandez that he can present his case and the District can present its case to the arbitrator. President Pro Tem Lucey advised Mr. Hernandez that if he has further issues he should discuss them with Local 1. 5. HEARINGS a. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.20.300 SCHEDULE OF REIMBURSEMENT FEES, TO ESTABLISH A REIMBURSEMENT FEE APPLICABLE TO PROPERTY WHICH COULD CONNECT TO DISTRICT PROJECT 5480 SEWERS 02 06 03 134 Mr. Batts, General Manager, stated that when ratepayers, businesses, or developers request that a Reimbursement Account be opened for a sewer line they have installed, the District Code requires that a public hearing be held prior to the Board's setting of a Reimbursement Fee for the project. Two property owners in Lafayette have installed a main sewer that can serve other properties and have requested that a Reimbursement Fee be established. Mr. Batts introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who used a map to describe the locations of the sewer main installation and the properties that could be served. Mr. Miyamoto-Mills directed the Board's attention to Exhibit B of the position paper which shows the costs and Reimbursement Fee calculation. Staff audits those costs from invoices and cancelled checks to determine the unit reimbursement rate. In this case the reimbursement per unit is $31,726.27. The District Code requires publication, posting and mailing of notice to the owners of all affected properties. That was done. No calls or correspondence has been received. At 2:20 p.m., President Pro Tem Lucey opened the public hearing to receive comments on the proposed ordinance to amend District Code Section 6.20.300 Schedule of Reimbursement Fees. There being no comments, the public hearing was closed. It was moved by Member Boneysteele and seconded by Member Menesini, that Ordinance No. 224 be adopted, amending District Code Section 6.20.300 Schedule of Reimbursement Fees, to establish a reimbursement fee applicable to property which could directly connect to District Project 5480 sewers. The motion was approved on the following vote: AYES: Members: Boneysteele, Menesini, Hockett, Lucey NOES: Members: None ABSENT: Members: Nejedly 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 7. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO D'ARCY & HARTY CONSTRUCTION. INC. FOR THE COLLECTION SYSTEM RENOVATIONS- SPOT REPAIRS 2002-2003, DP 5622 Mr. Batts, General Manager, stated that the primary focus of this project is to reduce the number of pending priority sewer repairs in the District's collection system. Almost 40 point repairs in seven different cities will be addressed by this project in addition to several line replacements. This is one more effort by the District to reduce the number of potential overflows within the District collection system. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that award of a construction contract in the amount of $258,850 for the Collection System Renovations - Spot Repairs 2002-2003, DP 5622, be authorized to D'arcy & Harty Construction, Inc., the lowest responsible bidder. There being no objection, the motion was approved with President Nejedly being absent. b. APPROVE REQUEST OF RELIEF OF BID FROM BELLALANEY CONSTRUCTION AND AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO BILAND CONSTRUCTION COMPANY FOR THE TREATMENT PLANT CONCRETE REHABILITATION PROJECT, DP 7213 Mr. Batts, General Manager, stated that the Treatment Plant Concrete Rehabilitation Project will replace and repair a number of minor concrete structures around the plant site including curbs and gutters, sidewalks, a pump pedestal, light support, and some asphalt paving. On January 22, 2003, nine bids were received. The apparent low bidder, Bellalaney Construction, asked for bid relief after notifying staff of a clerical error 02 06 135 made in their bid. It is recommended that bid relief be granted and that award be authorized to Biland Construction Company as the lowest responsible and responsive bidder. Discussion followed with regard to the nature of the clerical error made in the Bellalaney Construction bid. Mr. Kenton L. Aim, Counsel for the District, stated that he and District staff have reviewed the bids and believe that there was a clerical error. It was moved by Member Menesini and seconded by Member Hockett, that the request for relief of bid from Bellalaney Construction be accepted, and that staff be directed to return Bellalaney Construction's bid bond; and that award of a construction contract in the amount of $38,635 for construction of the Treatment Plant Concrete Rehabilitation Project, DP 7213, be authorized to Biland Construction Company, the second lowest responsible and responsive bidder. There being no objection, the motion was approved with President Nejedly being absent. a. 8. REPORTS GENERAL MANAGER 1 ) Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who showed photographs and reported on the progress at the San Ramon Pumping Station. The roof is finished and the outside is nearly completed. PG&E is now installing power to the pumping station. Mr. Brennan stated that staff learned from a newspaper article that the Barclays have filed a lawsuit, but the District has not yet been served. A copy of the newspaper article was included in the packet provided to the Board. Following discussion, Member Menesini complimented Mr. Brennan and District staff, the architects, and the engineers for their work on this project. Mr. Batts stated that Mr. Brennan has worked closely with the San Ramon City Council and staff, and he is doing a great job. 2) Mr. Batts, General Manger, stated that the Board asked staff to look into the safety of the District's investments in the Local Agency Investment Fund (LAIF) in light of the State budget crisis. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that she spoke with both Mike Dillon and Bobbi Larson from the California Association of Sanitation Agencies (CASA) as well as reviewing existing California Government Code sections with regard to the safety of the District's investment in the LAIF and whether those funds can be appropriated or borrowed by the State. Ms. Ratcliff stated that the answer is no. California Government Code Section 16429.3 states that moneys placed with the Treasurer for deposit in LAIF by cities, counties, special districts, etc., shall not be subject to (1) Transfer or loan, (2) Impoundment or seizure by any State official or State agency. Ms. Ratcliff stated further that Senate Bill 68 was passed in 2002. This legislation did two things. First, it added Section 16305.9 clarifying that local government funds deposited in LAIF are not "State money" and that money shall be held in a trust account or accounts. , Secondly, Senate Bill 68 added Section 16429.4 to the Government Code, which states that the right of a city, county, special district, etc., to withdraw its deposited money from LAIF upon demand may not be altered, impaired or denied in any way by any State official or State agency based upon the State's failure to adopt a State Budget by July 1 each year. Ms. Ratcliff stated that she talked to Mike Dillon and Bobbi Larson about passage of legislation that could take this money. They felt it is unlikely because of the potential of litigation from the agencies. LAIF has its own lobbyist group and they will be watching this very closely and LAIF will keep its depositors updated. 02 06 03 136 02 The Board thanked Ms. Ratcliff for her report. 3) Mr. Batts, General Manager, introduced Mr. Don Berger, Associate Engineer, who provided an Industrial Water Recycling update. Mr. Berger provided background information, stating that the filter plant and industrial distribution facilities were constructed in the 1970's for industrial reuse. The original filter plant design capacity was approximately 30 MGD but that much has never been used. Industrial reuse was not implemented due to institutional constraints, costs, and water quality issues. The General Agreement with Contra Costa Water District (CCWD) negotiated in 1994 allowed the recycled water landscape irrigation program to move forward. Staff feels that industrial reuse is potentially viable, but there is limited or no interest from CCWD. Discussion followed with regard to the duplication of services penalties. The bill carried by Senator Torlakson had an initial proposal to remove that but it was taken out of the bill that was passed. Mr. Kenton L. Aim, Counsel for the District, stated that for the next four years while the District is still under the General Agreement with CCWD, the District would have to pay some of those costs in any case. Mr. Berger stated that CCWD is not interested in pursuing the industrial recycled water project. Regulatory objections include the Duplication of Services Law discussed earlier which allows CCWD to recover sunk capital costs, and the CCWD Delta modeling study that suggested increased water recycling will increase salinity at the CCWD fresh water intake. Mr. Berger stated that this is technically true but the salinity increase would be an infinitesimal amount occurring once every 50 years. When the District applied for its National Pollutant Discharge Elimination System (NPDES) discharge permit increase, CCWD commented that if the District increased flows it would harm CCWD water quality, so it appears there is some positioning going on. Industrial water sales provide CCWD with a large revenue source at minimal cost, and the refineries buffer supply during times of drought since CCWD can ask the refineries to cut use rather than going to residents. Member Menesini stated that there is a lot of money and a lot of politics involved. It would seem that the District should have some contact or interaction with the CCWD staff and/or Board. President Pro Tem Lucey suggested that when President Nejedly returns, he appoint a Board Committee to look at the issues raised by Member Menesini. President Pro Tem Lucey stated that this is not an engineering problem; it is a political problem. President Pro Tem Lucey stated that in addition to Board Members, the committee should have someone from Community Affairs and the Administrative Department. Member Boneysteele stated that he would be happy to serve as a resource to the committee. Further discussion followed with regard to the status of the State Recycled Water Plan. It was noted that the Governor put forward a mandate recently to look at recycled water and things that inhibit its use. Mr. Batts stated that one of the most political things in California is water. Staff could put together information for the Board on the status of recycled water use statewide, but with focus on the District's project specifically. Mr. Berger stated that the refineries have had several ownership changes in recent years, but they have expressed a general interest in using recycled water as long as the economics make sense. The refineries have a preference for recycled water due to its superior water quality and lack of seasonal variation. The refineries see using recycled water as an environmentally friendly thing that provides an opportunity to enhance their community image. In order to provide the recycled water, additional 06 0..'\...;\.'. ~"...~ ; " iJ 137 District treatment facilities would be required at an estimated project cost of $8.5 million. The District would have to purchase CCWD pipelines and storage tanks (estimated at $9 million) or construct new infrastructure. This would be an entirely new program for the District. Recycled water supply for landscaping is very different than industrial recycled water. Unlike recycled water for landscaping, industrial recycled water must be provided seven days a week, 24 hours a day all year long. Significant additional O&M expenditures would be anticipated due to monitoring and reliability requirements and ammonia removal facilities. Potential exists to have a viable industrial reuse program if the District is willing to commit significant financial and staffing resources. Senate Bill 1518 (Torlakson) discussed earlier, does not currently help the District but allows the District to operate without a General Agreement from the Water District in the future. Mr. Berger reviewed the estimated project costs. The District cost to deliver recycled water to industry is $218 per AF (current dollars). To that must be added the CCWD proposed duplication of services cost of $352 per AF and the CCWD charge for use of existing pipeline facilities of $65 per AF. The total recycled water cost with all CCWD charges would be $635 per AF, unless the District can work with CCWD to reduce the charges. The current canal water cost is $445 per AF, making the extra cost for recycled water approximately $200 per AF. In addition, Mr. Berger stated that there are some unknowns because this would be a new program for the District. Member Menesini asked what the chances are of receiving CalFed funding for this project. Mr. Batts stated that the District could explore that but it is likely that most of the CalFed funding for recycled water will go to Southern California. A Board committee would be a good vehicle for staff to come back and provide updates. Member Menesini stated that he is also interested in the Bay Area Recycled Water Plan being done by Mr. Randy Raines. Director of Engineering Ann Farrell stated that Mr. Raines is trying to get project funding, but Ms. Farrell stated that she does not think he has been successful. He is also trying to work with CalFed. President Pro T em Lucey stated that appointment of a Board Recycled Water Committee will be scheduled for the next Board Meeting. 4) Mr. Batts, General Manager, stated that each year the District must publish a notice in the newspaper of those commercial and industrial dischargers to the District in significant noncompliance with the Federal source control and the District's pretreatment requirements. Mr. Batts introduced Mr. Tim Potter, Source Control Program Superintendent, who stated that the District is obligated to produce a list of industrial users in significant noncompliance for the previous calendar year and publish it in the Contra Costa Times. The format of the report is consistent with prior years, listing businesses separately that fail to meet reporting requirements from those businesses that have actual discharge limit violations. Mr. Potter stated that the following are businesses with discharge quality violations: . BART Concord Shop - Discharge limit violation for Total Toxic Organics; . Contra Costa Regional Medical Center - Discharge limit violation for Total Toxic Organics; . Excel Linen Supply - Discharge limit violation for Total Toxic Organics; 02 06 fi... ~.~ " ,,} 138 b. c. d. 02 . John Muir Medical Center - Discharge limit violation for Total Toxic Organics; . Kaiser-Permanente Medical Center - Discharge limit violations for silver; and . Roto-Rooter - Discharge limit violations for eight metals. Discussion followed with regard to the nature of the Roto-Rooter discharge limit violations and the procedures for accepting domestic waste at the District treatment plant. Mr. Potter stated that the following businesses have reporting violations: . Parker West International, LLC - Failure to submit periodic compliance report within 30 days of due date; and . Certified Environmental Technologies - Failure to submit periodic compliance report within 30 days of due date. 5) President Pro Tem Lucey thanked Mr. Potter for his report. Mr. Batts, General Manager, stated that he indicated to the Board that the January California Association of Sanitation Agencies (CASA) conference would include information on both the Biosolids program and the Vacaville litigation. The District, together with the other CAS A members, was asked to aid financially in both matters. The Biosolids Program is to prevent a hardening of regulations on sludge management. Mr. Batts suggested that the District support that program. The Vacaville litigation deals with a variety of National Pollutant Discharge Elimination System (NPDES) permit issues including attainability and economic analysis for proposed permit requirements. Mr. Batts stated that if the Board has no objection, he will authorize $5,000 to each matter. The Board voiced no objection. 6) Mr. Batts, General Manager, announced that the District received the first of two Honda Civic hybrid vehicles. It will be available for Board inspection at the February 20, 2003 Board Meeting. 7) Mr. Batts, General Manager, announced that Mr. Tom Godsey, one of the District's collection system design engineers, will be attending the Annual No Dig Technology Conference in Las Vegas. This is a budgeted conference. Several employees were scheduled for this conference. Mr. Godsey will bring the information back to the District. 8) Mr. Batts, General Manager, announced that he will be on vacation and will miss the next Board Meeting. Mr. James Kelly, Director of Operations, will act as General Manager during his absence. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, stated that Mr. Benjamin Reyes was present earlier. Mr. Aim stated that Mr. Reyes will be assisting in his work for the District. SECRETARY OF THE DISTRICT None BOARD MEMBERS 1) Member Menesini reported on the January 27, 2003 Contra Costa Special Districts Association meeting at which Contra Costa County Treasurer 06 1"\\ t 1" 'ii. .w .,- 139 William Pollacek was the primary speaker. Most of the meeting dealt with the State budget crisis. 2) Member Menesini distributed and reviewed the notes from the February 5, 2003 Personnel Committee meeting at which topics of discussion included the conditional hiring freeze, the limited use of temporary and contract employees, receipt of the overtime report, and receipt of the 2002 Diversity Report. The Board of Directors concurred with the Personnel Committee recommendation to recruit for one Engineering Assistant I (Permits) and one Engineering Assistant III. All other hiring decisions will be put off until the Board considers the District staffing plan. The Board of Directors also concurred with the Personnel Committee recommendation that the current temporary and contract employees be retained for the short term. 3) President Pro Tem Lucey reported on the February 3 and 4, 2003 Budget and Finance Committee meetings. At the February 3 meeting, the expenditures were reviewed. Staff was asked to research a laboratory bill and develop of list of laboratory work done by the District for other agencies to determine if reimbursement is appropriate. The use of Roto Rooter at the Household Hazardous Waste Collection Facility and the Collection System Operations Division offices was also discussed. President Pro Tem Lucey stated that Roto Rooter will not be used unless the General Manager's approval has been received. At the February 4 meeting, firms were interviewed for appointment as the District's independent auditor. Four firms were interviewed and all of the firms were technically competent. Staff is checking references. This matter will be brought to the full Board for final approval. 4) Member Menesini reported on the Concord Naval Weapons Station Rehabilitation Advisory Board on which he serves. 5) Member Hockett voiced concern about decisions being made in Committee that are not brought to the full Board for consideration and input. Member Hockett stated that the committees are to do the work of the District, but the full Board should make the decisions. An example would be the Roto Rooter item mentioned earlier. President Pro T em Lucey stated that he and Member Hockett have philosophical differences. He believes that is the purpose of committees. BREAK At 3:43 p.m., President Pro Tem Lucey declared a recess, reconvening at the hour of 3:58 p.m. with all parties present as previously designated. 9. TREATMENT PLANT BOARD ACCEPTANCE OF THE 2002 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM. COLLECTION SYSTEM OVERFLOW MONITORING PROGRAM, AND RECYCLED WATER QUALITY AND DISTRIBUTION REPORTS a. Mr. Batts, General Manager, stated that as Mr. Craig will report, this is the District's fifth year with no violations. This is a remarkable record by District employees given the regulatory climate and the comprehensive nature of the District's National Pollutant Discharge Elimination System (NPDES) permit. Mr. Batts introduced Mr. Douglas J. Craig, Plant Operations Division Manager, who stated that the Annual NPDES, Collection System Overflow Monitoring Program, and Recycled Water Quality and Distribution Reports are a summary of the calendar year performance. Data from the 12 monthly reports submitted to the Regional Water Quality Control Board (RWQCB) is compiled into the annual report. In essence this is the District's report card to the RWQCB. The RWQCB Annual Report NPDES section contains information on 02 06 03 140 treatment plant waste characteristics and loading for influent, treated effluent, and the receiving water (Suisun Bay near the District's outfall); sludge disposal practices; and O&M manual status. The Collection System Overflow Monitoring Program section contains information on the site, volume, and cause of sewer system overflows. The Recycled Water Quality and Distribution section contains information on recycled water usage, water quality, and annual customer inspections. Mr. Craig reported that in calendar year 2002, the total flow treated was 16.1 billion gallons. The average daily flow was 44.3 million gallons. The peak hourly flow, occurring on December 16, 2002, was 181 million gallons. 5,438 tons (wet weight) of ash was disposed of for soil amendment. Approximately 15,000 analytical tests requiring approximately 11,000 hours of laboratory work were completed. The District was in 100 percent compliance with its NPDES permit requirements. In calendar year 2002, there were 39 total sewer overflows. None of those overflows were greater than 10,000 gallons. Four overflows were greater than 1,000 gallons. The most common cause of overflows was root intrusion. Grease, debris, and a broken pipe were also causes. In calendar year 2002, the District provided recycled water to 17 major customers, delivering 178 million gallons of recycled water. The peak month usage was 31.8 million gallons in July. Mr. Craig stated that the District's new NPDES permit requires certain special studies. Mr. Craig reviewed the status of the Ambient Monitoring Study, Cyanide Site-Specific Objectives Study, Dioxins Analytical Method Development Study, increased emphasis on Pollution Prevention and Minimization, Total Maximum Daily Loads (TMDLs), Mercury Analytical Method Development Study, and Copper and Nickel Delisting Effort. In closing, Mr. Craig thanked the Board of Directors for their support, and acknowledged the contributions of all the employees that made this possible. The Board commended staff on the outstanding job that resulted in 100 percent compliance with permit requirements. It was moved by Member Menesini and seconded by Member Hockett, that the 2002 National Pollutant Discharge Elimination System, Collection System Overflow Monitoring Program, and Recycled Water Quality and Distribution Reports be accepted and submitted to the Regional Water Quality Control Board. There being no objection, the motion was approved with President Nejedly being absent. 10. CORRESPONDENCE a. RECEIVE LETTER DATED JANUARY 20,2003 FROM MR. STEVEN CALLAWAY, PRESIDENT OF THE BOARD OF STONEHURST OF ALHAMBRA VALLEY, COMMENDING SHIFT SUPERVISOR GEORGE FOWLER AND CENTRAL CONTRA COSTA SANITARY DISTRICT FOR THEIR EXCELLENT WORK IN REPAIRING AND UPGRADING THE STONEHURST SEWER SYSTEM AND TREATMENT PLANT Mr. Batts, General Manager, stated that a letter has been received from the Stonehurst Homeowners Association commending the work that the District did during the three- month period that the District operated the Stonehurst facilities. Mr. Batts stated that this was a unique opportunity to work with the County, and to demonstrate the capabilities of the District as a good neighbor, a concerned public agency, and a strong technical organization. Shift Supervisor George Fowler's personal leadership and ability enabled the District to provide this level of service. Mr. Fowler had many employees working with him, including but not limited to Plant Operators Aaron Cortez and Jim Zeiger, Plant Operations Superintendent Ted Smith, and Plant Operations Division Manager Doug Craig. In response to questions from the Board, it was noted that the homeowners were billed on a time and materials basis for the work done by the District. The Board acknowledged receipt of the letter dated January 20,2003 from Mr. Steven Callaway, President of the Board of Stonehurst of Alhambra Valley. 02 06 ~) ~~}' 141 11. APPROVAL OF MINUTES a. MINUTES OF JANUARY 9,2003 It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of January 9,2003 be approved as presented. There being no objection, the motion was approved with President Nejedly being absent. 12. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FEBRUARY 6, 2003 President Pro Tem Lucey, Chair of the Budget and Finance Committee, stated that he and President Nejedly reviewed the expenditures. It was moved by President Pro Tem Lucey and seconded by Member Boneysteele, that the Expenditure List dated February 6, 2003, including Self Insurance Check Nos. 101972-101975, Running Expense Check Nos. 142671-143034, and Sewer Construction Check Nos. 25254-25323, be approved as recommended. There being no objection, the motion was approved with President Nejedly being absent. 13. BUDGET AND FINANCE a. RECEIVE THE 2002-2003 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31,2002 Mr. Batts, General Manager, introduced Ms. Deborah Ratcliff, Controller, who reviewed the financial position of the District for the first six months ending December 31,2002, and the projections for the full year, which were presented at the January Financial Planning and Policy Board workshop and on which the Five Year Plan was based. Ms. Ratcliff reviewed the results of operations and maintenance for the six months ended December 31,2002, reporting that actual expenses of $17.5 million were $2.1 million under budget. For the six months ended December 31,2002, actual revenues of $19.3 million were on budget. At December 31,2002, revenue over expense was $1.8 million. Ms. Ratcliff reported that for the full fiscal year, revenues are projected to be $41.9 million or $157,000 greater than budget. Expenses are projected to be $40.4 million or $1 million less than budget, representing a 2.4 percent favorable variance. At June 30, 2003, revenue over expense results i' á projected increase in O&M reserves of $1.5 million. Ms. Ratcliff showed a listing and reviewed the differences between the expense savings at six months and full year projections as detailed more fully in the position paper. The differences are primarily in the areas of Employee Benefits, Chemicals, Utilities, Repairs and Maintenance, and Hauling and Disposal. It was moved by Member Boneysteele and seconded by Member Hockett, that the 2002-2003 Operations and Maintenance Budget Review for the six months ended December 31,2002 and projections for the full fiscal year be received. There being no objection, the motion was approved with President Nejedly being absent. b. RECEIVE DECEMBER 2002 FINANCIAL STATEMENTS Ms. Ratcliff, Controller, reported that the District's temporary investments were held in a three-month Treasury bill, commercial paper, and the District's Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF account through December 2002 was 2.2 percent. President Pro Tem Lucey declared that the December 2002 Financial Statements and report of temporary investments were duly received. 02 06 03 142 2002-2003 CAPITAL IMPROVEMENT BUDGET MID-YEAR STATUS REPORT c. Mr. Batts, General Manager, stated that the Capital Improvement Budget is a significant part of the District's overall budget. As discussed with the Board, staff is making an effort to reduce and defer capital spending wherever possible in light of the present budget uncertainties. Mr. Batts introduced Ms. Ann E. Farrell, Director of Engineering, who presented the 2002-2003 Capital Improvement Budget (CIB) Mid Year Status Report. Ms. Farrell stated that approximately $28 million (excluding Dougherty) was approved by the Board of Directors for fiscal year 2002-2003. At June 30, 2003, CIB expenditures (excluding Dougherty) are projected to be approximately $24.5 million, approximately $4 million less than originally budgeted because of projected savings and deferrals. Ms. Farrell summarized CIB program components and the major differences between what the Board approved and the year end projections, stating that at June 30, 2003, Collection System Program expenditures (excluding Dougherty) are projected to be $17.4 million or $2.3 million less than budget and Treatment Plant Program expenditures are projected to be $5.7 million or $572,000 less than budget. Ms. Farrell reviewed the 2002-2003 Capital revenues are projected at $21.2 million, right on target. Staff is watching Facility Capacity Fee revenue closely and hopes to have an overage at year end, but revenues were down significantly in December 2002. Ms. Farrell stated that staff expects to achieve the $4 million reduction in spending discussed with the Board at the January Financial Planning and Policy Workshop. At June 30, 2003, Capital revenues are projected to be $21.3 million, Capital expenditures are projected to be $24.5 million plus debt retirement of $743,000, for a projected deficit of about $4 million. The Sewer Construction Fund will decrease from $49.7 million by approximately $4 million to $45.7 million at July 1, 2003. Ms. Farrell noted that the beginning Sewer Construction Fund balance of $49.7 million was $12 million greater than the prior year. This was due to the $15 million bond financing for the San Ramon projects, and deferral of projects. Following discussion of projected connections in the Dougherty Valley, President Pro Tem Lucey declared that the 2002-2003 Capital Improvement Budget Mid Year Status Report was duly received. 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 16. CLOSED SESSION a. SIGNIFICANT EXPOSURE TO LITIGATION This closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9 (b), one potential matter, was not held. 17. REPORTS OF DISCUSSIONS IN CLOSED SESSION None 02 06 /j" ~;"',), ¡: tI.'. ".'" Iii .'.' U ~:) 18. ADJOURNMENT There being no further business to come before the Board, President Pro Tem Lucey adjourned the meeting at the hour of 4:28 p.m. COUNTERSIGNED: pre~e B~~rd ~ors, Central Contra Costa Sanitary District, County of Contra Costa, State of California 02 06 143 03