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HomeMy WebLinkAboutBOARD MINUTES 06-05-03 226 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 5, 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 June 5, 2003. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Lucey, Hockett, 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 . INTRODUCE SCOTT KAHLOR, NEWLY HIRED ENGINEERING ASSISTANT III Mr. Scott Kahlor, Engineering Assistant III, was introduced and welcomed to the District by President Nejedly and the Board of Directors. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. PRESENTATION BY DEPARTMENT OF TOXIC SUBSTANCES CONTROL HEADQUARTERS BRANCH CHIEF KARL PALMER OF THE 2003 CALIEPA HOUSEHOLD HAZARDOUS WASTE/USED OIL PROGRAM - PROGRAM EXCELLENCE AWARD TO CENTRAL CONTRA COSTA SANITARY DISTRICT AND MT. VIEW SANITARY DISTRICT HOUSEHOLD HAZARDOUS WASTE COLLECTION FACILITY b. PRESENTATION OF THE CALIEPA HOUSEHOLD HAZARDOUS WASTE COLLECTION FACILITY PROGRAM MOST PICTURESQUE AWARD BY DEPARTMENT OF TOXIC SUBSTANCES CONTROL HEADQUARTERS BRANCH CHIEF KARL PALMER Mr. Charles W. Batts, General Manager, stated that Central San and our partner Mt. View Sanitary District were selected to receive CalEPA's Program Excellence Award and, on the lighter side, the Most Picturesque Award. The Program Excellence Award recognizes an outstanding program that addresses household and small business hazardous waste management at the local level, including promotion of pollution prevention and the reduction of hazardous components in municipal waste streams. The Most Picturesque Award was given to the facility for a customer who arrived on a bicycle with household hazardous waste in a box on a baby seat. Mr. Karl Palmer, Headquarters Branch Chief for the Department of Toxic Substances Control (DTSC), stated that he is honored to be here to present these awards. The Household Hazardous Waste Program is very important to DTSC and the California Integrated Waste Management Board, because it is in the front line of keeping hazardous materials out of the environment. Mr. Palmer stated that Central Contra 06 05 03 227 Costa Sanitary District and Mt. View Sanitary District have worked to establish a model program at the Household Hazardous Waste Collection Facility. In addition to homeowners, service is provided to small businesses. It is a full service program, with educational and outreach components, and partnerships with local business and other stakeholders in developing curriculum for schools. It is truly a model program. Last year 1.4 million pounds of household hazardous waste was collected, with 49 percent of that recycled or reused. The Integrated Pest Management (JPM) Program is another model program, including development of an excellent curriculum and a partnership with the Master Gardeners to give free classes to educate people. On behalf of the California Integrated Waste Management Board and the California Environmental Protection Agency in recognition of these impressive achievements, Mr. Palmer presented the 2003 CalfEPA Household Hazardous Waste fUsed Oil Program Excellence Award made from recycled glass to Central Contra Costa Sanitary District and Mt. View Sanitary District. Mr. Palmer displayed the photograph of a bicyclist dropping off items at the Household Hazardous Waste Collection Facility (HHWCF) and presented the CalfEPA Household Hazardous Waste Collection Facility Most Picturesque Award. Mr. Dave Contreras, District Manager of Mt. View Sanitary District, introduced Mr. Arthur Castro, Vice President of the Mt. View Sanitary District Board of Directors, and Dr. Teng-Chung Wu, Technical Services Director for Mt. View Sanitary District. On behalf of Mt. View Sanitary District, Dr. Wu thanked the Board for this opportunity to partner with Central Contra Costa Sanitary District. Household hazardous waste management can be traced back to more than ten years ago when the Bay Area started a Pollution Prevention Program. In the beginning it was directed toward industries that could discharge into the sewer system. Now we are focusing on dischargers to the storm drains, and the program has been extended to the residents as well. Dr. Wu stated that the Household Hazardous Waste Collection Facility is a great step taken by Central San and Mt. View together to reduce household hazardous waste. Mr. Henry Thom, Senior Engineer, introduced the Household Hazardous Waste Collection Facility staff, Steve Cavin, Loren Staggs, Dave Wyatt, James Minor, and Elaine Jacobs. Mr. Batts commended these individuals, stating that they have done an excellent job each and every day providing outstanding service to the public. c. RECEIVE ASSOCIATION OF METROPOLITAN SEWERAGE AGENCIES AMSA PLATINUM AWARD IN RECOGNITION OF FIVE CONSECUTIVE YEARS OF COMPLETE AND CONSISTENT NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NP~T COMP~ Mr. Batts, General Manager, stated that in 2002 the District completed another year of exceptional permit compliance with no violations. On May 19, 2003 at the Association of Metropolitan Sewerage Agencies (AMSA) Conference in Washington, D.C., the District received an AMSA Platinum Award for five consecutive years of no permit violations. This award represents an outstanding achievement on the part of the entire District and all the employees are to be commended for this significant accomplishment. Mr. Batts introduced Mr. Douglas J. Craig, Plant Operations Division Manager, who accepted the AMSA Platinum Award on behalf of the District at the AMSA Conference. Mr. Craig stated that in 2002, the District processed 16.2 billion gallons of wastewater, produced 5,438 tons of ash, and conducted 39,500 Laboratory compliance analyses, all with no permit violations, achieving 100 percent National Pollutant Discharge Elimination System (NPDES) permit compliance. Each year AMSA presents peak performance awards. Silver Awards are presented to AMSA member agency facilities having five or less NPDES permit violations during the calendar year. Gold Awards are presented to AMSA member agency facilities that achieve 100 percent compliance with their NPDES permit limits during the calendar year. Platinum Awards are presented to AMSA member agency facilities that have consistently met all NPDES permit limits for five consecutive years. There are 351 AMSA member agencies. In 2002, AMSA presented 132 Silver Awards, 203 Gold Awards, and 32 Platinum Awards. The 32 06 05 03 228 Platinum Awards represented only 26 agencies because some agencies have multiple treatment plants. Mr. Craig reviewed the District's past performance as follows: 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Silver Award Silver Award Silver Award Gold Award Silver Award None Gold Award Gold Award Gold Award Gold Award Platinum Award Mr. Craig stated that the District must start over again in 2003 and will not be eligible for another Platinum Award until five more consecutive years have been completed. In order to meet its NPDES permit requirements, the District must meet the challenges presented by construction impacts, mechanical breakdown of critical equipment, communication of activities, uncontrollable constituents, and new permit concerns including more stringent requirements. Mr. Craig thanked the Board for their support and acknowledged the outstanding efforts of the entire District. Everyone contributed to this effort. President Nejedly commended the entire District on the excellent compliance record and hard work represented by this Platinum Award. 4. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Lucey, that the Consent Calendar, consisting of Items a. through f., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. Resolution No. 2003-038 was adopted, authorizing the President of the District Board of Directors and the Secretary of the District to execute a Quitclaim Deed to East Bay Municipal Utility District for an unneeded easement at their Danville Pumping Plant, CCCSD Job 1583, Parcel 13, Sub-Parcel A (Portion), and authorizing staff to record said Quitclaim Deed with the Contra Costa County Recorder. a. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: b. Hockett, Lucey, Menesini, Boneysteele, Nejedly None None Resolution No. 2003-039 was adopted, confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the Office of the Contra Costa County Recorder for the Barbee Lane Contractual Assessment District No. 98-5, DP 5477. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: 06 05 03 Hockett, Lucey, Menesini, Boneysteele, Nejedly None None 229 c. Resolution No. 2003-040 was adopted, confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the Office of the Contra Costa County Recorder for the Regent Place Contractual Assessment District No. 2000-2, DP 5444. Motion unanimously approved on the following vote: AYES: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None d. Resolution No. 2003-041 was adopted, confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the Office of the Contra Costa County Recorder for the Angelo StreetlEI Sombro Contractual Assessment District No. 2000-3, DP 5548. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly None None e. Resolution No. 2003-042 was adopted, confirming and levying final assessments and authorizing a Notice of Assessment to be recorded in the Office of the Contra Costa County Recorder for the Corwin Drive/La Sonoma/Los Alamos Contractual Assessment District No. 2000-4, DP 5428. Motion unanimously approved on the following vote: AYES: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None f. Resolution No. 2003-043 was adopted, confirming publication of District Ordinance No. 225, amending District Code Section 6.20.300, Schedule of Reimbursement Fees to Establish a Reimbursement Fee Applicable to Property Which Could Directly Connect to Project 5515 Sewers (Finley Lane, Alamo). 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 PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS ON THE 2003-2004 OPERATIONS AND MAINTENANCE BUDGET AND THE SELF INSURANCE FUND BUDGET, AND ON PLACING THE 2003-2004 SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Mr. Batts, General Manager, stated that today the Board will be asked to approve the Operations and Maintenance (O&M) Budget and the Self Insurance Fund Budget, and to approve the collection of the Sewer Service Charges on the County tax roll. The 06 05 03 '. 230 budget process began with a Board Planning Workshop in January and workshops and updates on various aspects of the District budget throughout the spring. At the last Board meeting, the O&M Budget was discussed in detail, and the Capital Improvement Budget was summarized. The proposed Budget includes cost cuts where possible, yet strives to maintain a high standard of customer service. The Budget assumes the loss of ad valorem tax revenue and a Sewer Service Charge increase of $24, of which $11 will be allocated to O&M. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that she will review the O&M at a high level since it was reviewed in detail at the last Board meeting. Ms. Ratcliff provided a comparison of the 2002-2003 O&M Budget compared to the 2003- 2004 O&M Budget, noting that revenues are projected to increase by 2.9 percent from $41,761,000 in 2002-2003 to $42,986,000 in 2003-2004. O&M expenses are projected to increase by 6.3 percent from $41,422,000 in 2002-2003 to $44,033,000 in 2003- 2004. Ms. Ratcliff stated that it is projected that $1.6 million will be put into the O&M fund the current fiscal year ending June 30, 2003, but that the fund balance at June 30, 2004 will decrease by $1,047,000 to $6,782,000. Ms. Ratcliff highlighted changes in major expense categories from the 2002-2003 O&M Budget to the 2003-2004 O&M Budget, noting that $2.4 million of the $2.6 million increase is in salaries and benefits. Ms. Ratcliff discussed the increase in Workers Compensation cost which was raised at the last Board meeting. A 20 percent increase is projected for the current fiscal year. Workers Compensation is then applying a 20 percent rate increase to District salaries which are projected to increase by $1.2 million. Ms. Ratcliff reviewed the actual 2001-2002, the projected 2002-2003, and the proposed 2003-2004 Self Insurance Fund Budgets, stating that 2003-2004 revenues will decrease slightly to $307,100 and expenses are projected to increase significantly to $1,018,000, resulting in a decrease in reserves of $710,900. Ms. Ratcliff reviewed the Self Insurance Fund historic trends in loss payments and insurance premiums. Ms. Ratcliff stated that the O&M Budget included a $225,000 transfer to the Self Insurance Fund. In closing, Ms. Ratcliff recommended that the Board approve the O&M and Self Insurance Fund Budgets, and authorize collection of the Sewer Service Charge on the County tax roll. At 2:23 p.m., President Nejedly opened the public hearing to receive public comments on the 2003-2004 O&M Budget and Self Insurance Fund Budget. There being no comments, the public hearing was closed. It was moved by Member Hockett and seconded by Member Menesini, that the 2003- 2004 Operations and Maintenance Budget and the 2003-2004 Self Insurance Fund Budget be approved. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Boneysteele, Lucey, Nejedly None None At 2:24 p.m., President Nejedly opened the public hearing to receive public comments on placing the Sewer Service Charges on the County tax roll for collection. There being no comments, the public hearing was closed. It was moved by Member Hockett and seconded by Member Lucey, that Resolution No. 2003-044 be adopted, authorizing collection of the 2003-2004 Sewer Service Charges on the County tax roll. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly None None 06 05 03 231 b. CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS: ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION. ARTICLE XIIID. SECTION 4: ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENTS AND ORDERING IMPROVEMENTS: AND AUTHORIZE EXECUTION OF AGREEMENT WITH ECHO SPRINGS ROAD PARCEL OWNERS IN CONJUNCTION WITH THE ECHO SPRINGS ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2001-2 Mr. Batts, General Manager, stated that the Echo Springs Road Contractual Assessment District (CAD) No. 2001-2 in Lafayette is the first of two CAD projects that the Board will consider for funding today. Under the District's CAD Program, the Board considers approval of a CAD project at three specific times. These approvals are at the initiation of the CAD, following the election by the affected property owners, and at project completion to set final assessments. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that the Echo Springs Road CAD No. 2001-2 is at the second decision point. The Echo Springs Road CAD meets all the District CAD criteria. It benefits at least five properties, at least 60 percent are developed properties, and there are no more than two dwellings per property. Using a map, Mr. Swanson described the location of the proposed Echo Springs Road CAD project that will serve properties on Echo Springs Road in Lafayette. There are six participants and one non-participant. The CAD project will install 1,060 feet of 8-inch sewer and four manholes. The estimated cost of the CAD project is $155,965. The estimated cost is $25,994 per participant, or $3,495 annually for ten years. Mr. Swanson reported that this is the fourth CAD project that the Board will consider funding this fiscal year. If the Echo Springs Road CAD is approved, a total of $618,611 will have been authorized in the current fiscal year. At 2:28 p.m., President Nejedly opened the public hearing to receive comments on the proposed Echo Springs Road Contractual Assessment District No. 2001-2. Mr. Swanson announced the results of the ballots submitted by owners of each affected parcel in the Echo Springs Road CAD No. 2001-2. Six ballots were in favor of and one ballot was not returned so it is considered opposed to the proposed assessment. Mr. Paul Meredith, 1020 Park Place, Pleasant Hill, stated that he has been working on this project for over two years. The area is in desperate need of a sewer. The residents are ready to move forward. A contractor has been hired and has met with all of the neighbors. While no one is very happy about the cost to install the sewer, everyone thinks it is a good thing. There being no further comments, President Nejedly closed the public hearing at the hour of 2:32 p.m. It was moved by Member Hockett and seconded by Member Lucey, that Resolution No. 2003-045 overruling protests be adopted; that Resolution No. 2003-046 be adopted, confirming compliance with California Constitution Article XIIID, Section 4; that Resolution No. 2003-047 be adopted, approving the Engineer's Report, assessments, and ordering improvements; and that the General Manager be authorized to execute an agreement with the Echo Springs Road parcel owners in conjunction with the Echo Springs Road CAD No. 2001-2. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Menesini, Boneysteele, Nejedly None None c. CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS: ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION ARTICLE XIIID. SECTION 4: ADOPT A 06 05 03 232 RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENTS AND ORDERING IMPROVEMENTS; AND AUTHORIZE EXECUTION OF AGREEMENT WITH EL ALAMO. NATHAN PLACE. AND MICHAEL LANE PARCEL OWNERS IN CONJUNCTION WITH THE EL ALAMO CONTRACTUAL ASSESSMENT DISTRICT NO. 2002-2 Mr. Batts, General Manager, stated that the second CAD hearing is for the EI Alamo Contractual Assessment District (CAD) No. 2002-2 project located in Danville. Mr. Batts introduced Mr. Swanson, Environmental Services Division Manager, who stated that the EI Alamo CAD No. 2002-2 is also at the second decision point. The EI Alamo CAD meets all the District CAD formation criteria. It benefits at least five properties, at least 60 percent are developed properties, and there are no more than two dwellings per property. Using a map, Mr. Swanson described the location of the proposed EI Alamo CAD project that will serve properties on EI Alamo, Nathan Place, and Michael Lane in Danville. There are ten participants and two non-participants. The CAD project will install 2,247 feet of 8-inch sewer and eight manholes. The estimated cost of the CAD project is $263,308. The estimated cost per participant is $26,331, or $3,540 annually for ten years. Mr. Swanson reported that this is the fifth CAD project that the Board will consider funding this fiscal year. If the EI Alamo CAD is approved, a total of $881,919 will have been authorized in the current fiscal year. At 2:37 p.m., President Nejedly opened the public hearing to receive comments on the proposed EI Alamo Contractual Assessment District No. 2002-2. Mr. Swanson announced the results of the ballots submitted by owners of each affected parcel in the EI Alamo CAD No. 2002-2. Ten ballots were in favor of and two ballots were opposed to the proposed assessment and will not be included in the EI Alamo CAD. Mr. Doug Sharpe, 2 Shelby Hill Lane, Danville, stated that he has been working on this project for three years. Originally only three property owners were interested, but different routes were explored and now the proposed sewer will serve ten houses. Mr. Sharpe stated that this project could not have been done without the District's CAD Program. Mr. Sharpe stated that the District's CAD Program benefits property owners, but it also benefits the District in that it gives the District more control over how and where the sewer lines are installed. Mr. Sharpe commended the District on this excellent program. There being no further comments, President Nejedly closed the public hearing at the hour of 3:40 p.m. It was moved by Member Hockett and seconded by Member Menesini, that Resolution No. 2003-048 overruling protests be adopted; that Resolution No. 2003-049 be adopted, confirming compliance with California Constitution Article XIIID, Section 4; that Resolution No. 2003-050 be adopted, approving the Engineer's Report and assessments and ordering improvements; and that the General Manager be authorized to execute an agreement with the EI Alamo, Nathan Place, and Michael Lane parcel owners in conjunction with the EI Alamo CAD No. 2002-2. Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Boneysteele, Lucey, Nejedly NOES: Members: None ABSENT: Members: None President Nejedly thanked Messrs. Meredith and Sharpe for their comments and for taking the time to attend this meeting. 06 05 03 233 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Mr. Batts, General Manager, requested that Item 15.a., Closed Session, be taken out of order. Hearing no objection, President Nejedly proceeded to Item 15.a., Closed Session. 15. CLOSED SESSION a. 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 2:40 p.m., President Nejedly declared the closed session to discuss labor negotiations pursuant to Government Code Section 54957.6 as noted above. At 3:15 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. At this time, President Nejedly reverted to the order of the agenda. 7. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO OVERMILLER. INC.. DBA ROTO-ROOTER, FOR THE LAFAYETTE SEWER RENOVATION PROJECT. PHASE 4. DP 5661 Mr. Batts, General Manager, stated that bids for the Lafayette Sewer Renovation Project, Phase 4, were opened on May 27,2003. This project will reconstruct sewer lines at 17 locations, ten of which are easement sites that will involve close cooperation with customers for site access and restoration. Staff recommends award to Overmiller, Inc., dba Roto-Rooter, the lowest responsive bidder. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that award of a construction contract in the amount of $1,540,500 for the construction of the Lafayette Sewer Renovation Project, Phase 4, DP 5661, be authorized to Overmiller, Inc., dba Roto-Rooter, the lowest responsive bidder. There being no objection, the motion was unanimously approved. 8. REPORTS GENERAL MANAGER a. 1) Mr. Batts, General Manager, provided a State budget update, stating the Senate Democrats passed a draft budget plan that mirrors the $100 billion spending plan submitted by Governor Davis, but no spending is authorized due to the lack of Republication votes. There are many special interest groups fighting for various State programs making the job more difficult. Rumors indicate that local government will lose $500 million to $1 billion. Senator Tom Torlakson's bill to add ERAF (ad valorem tax) shift to special districts that currently do not contribute has been amended. At the local government level, most are waiting to see what comes down from Sacramento. An example of the impact of the State budget and the economic downturn is the recent San Francisco budget plan which shows a $347 million deficit requiring the elimination of 750 jobs, employees paying the 7.5 percent retirement, and program cuts equaling a 10 percent 06 05 OQ '0 234 2) 3) 06 05 decrease for each department. San Francisco is looking at additional revenue measures such as increasing fees and charges, and adding a payroll tax and vehicle fee. Mr. Batts, General Manager, stated that there is nothing new to report with regard to the status of the retirement system; however, several interesting news articles about public employee pensions and the Contra Costa County Employees Retirement Association were included in the news clips. Mr. Batts, General Manager, introduced Mr. James M. Kelly, Director of Operations, who provided an update on the District's National Pollutant Discharge Elimination System (NPDES) permit and studies. Mr. Kelly stated that the District NPDES permit was issued on June 21, 2001. The NPDES permit was appealed and the appeal was held in abeyance. The NPDES permit requires several special studies and continued support of existing programs. Mr. Kelly stated that the District has two years of compliance with the new NPDES permit. The appeal was with regard to future requirements that would likely be in the next permit. The Board- authorized request for extension has been presented by the District and the Bay Area Clean Water Agencies (BACWA). The District should hear in the next month whether it was granted. East Bay Municipal Utility District (EBMUD) and the Regional Water Quality Control Board (RWQCB) are in negotiations with regard to final limits to have two legacy pesticides pulled out of the EBMUD NPDES permit. The District has legacy pesticides in its NPDES permit also and may try to have them removed as well. Mr. Kelly reported on the special studies required in the District's NPDES permit. The Ambient Background Water Quality Characterization Study was completed by May 18, 2003. The study was conducted by BACWA and the District. This cooperative effort saved approximately $80,000. The study report was submitted on schedule with one more sampling event to be completed. There were no remarkable findings. The Cyanide Site-Specific Objective was completed as required by June 30,2003, and the final report has been submitted. It was conducted by BACWA with Dr. Gail Chesler as co-lead. This cooperative effort saved up to $100,000. The Dioxin Study requires that the District effluent be sampled two times per year for three years. The first effluent sample was clean. Mr. Kelly reported that the District continues to support existing program, including Pretreatment and Pollution Minimization/Pollution Prevention Regional Monitoring Program. The District is working with others in the Clean Estuary partnership on Total Maximum Daily Load (TMDL) development. Progress on the Mercury TMDL is slow. The Mercury TMDL sets the stage for all the other TMDL's to follow. President Nejedly thanked Mr. Kelly for the update. 4) Mr. Batts, General Manager, stated that as part of the District budget preparation this year, staff has reviewed the District fees and charges in order to ensure that the actual cost for these services is being recovered. Any cost recovered through fees reduces the District's reliance on Sewer Service Charges. These fees include charges for District-provided services outside normal maintenance. One important aspect of this is the District's Capacity Fee for new connections. The current method of calculating Capacity Fees is based on charging each new customer a fee for buying into District facilities. This method was used in 2001 when the Capacity Fees were last increased. This year, staff has reviewed the previous calculations and recommends adjustments which increase the Capacity Fees to more accurately reflect the value of District facilities. 03 235 Mr. Batts introduced Ms. Ann E. Farrell, Director of Engineering, who provided an update on Capacity Fees and Developer Rates and Charges. Ms. Farrell stated that the District's fees and rates and charges are being reviewed in an effort to mitigate the upward pressure on the Sewer Service Charge, to recover the actual cost of service, and to have fair and equitable charges for all ratepayers. It is proposed that the Capacity Fee be updated to reflect the increased value and extended life of new assets. It is proposed that a Main Buy-In Fee be considered for certain properties. Staff is also looking at the assessed value of the land but any proposed adjustments will be deferred until next year. Ms. Farrell reviewed the District Capacity Fee history. The Capacity Fee is a charge for buy-in to District facilities. In 1994, the approach used to set the Capacity Fee was to use buy-in to existing assets and future facilities. The Capacity Fee was $2,572 per Residential Unit Equivalent (RUE) for gravity zone and $2,920/RUE for pump zone. In 2001, the District adopted the current value of assets approach for the Capacity Fee which resulted in a Capacity Fee increase of 30 percent to $3,360/RUE for gravity zone and 40 percent to $4,070/RUE for pump zone. The current value is based on assumed asset life. Ms. Farrell stated that a two-year review of Capacity Fees was conducted. Using the current methodology, an increase is warranted based on the increased current value of the assets. The gravity zone fee would increase 6 percent from $3,360 to $3,559/RUE and the pump zone fee would increase 10 percent from $4,070 to $4,454/RUE. If an additional adjustment is made for the adjusted asset life, the gravity zone fee would increase 18 percent from the current $3,360 to $3,983/RUE and the pump zone fee would increase 22 percent from $4,070 to $4,971/RUE. Ms. Farrell stated that the Board Budget and Finance Committee has asked that the proposed increase in Capacity Fees be linked with the proposed increase in Developer Rates and Charges. The impact would be that new connections would also be assessed higher rates and charges for permits, plan review, and inspections, from existing total rates and charges of $562 to proposed total rates and charges of $982, a 75 percent increase. Ms. Farrell stated that this is a large percent increase, but the actual cost is a minor component. Ms. Farrell reviewed the recommended increase for a single connection, stating that in the gravity zone the existing Capacity Fee and Rates and Charges total $3,922/RUE would increase to $4,965/RUE, a 26 percent increase. A single connection in the pump zone would increase from a total of $4,632/RUE to $5,953/RUE, a 28 percent increase. Ms. Farrell provided a comparison of Capacity Fees of neighboring agencies, ranging from a low of $1,795 for West County Wastewater District to a high of $11,050 for Dublin San Ramon Services District. Ms. Farrell stated that staff strongly recommends the proposed increases. Based on 1,200 connections per year, the proposed Capacity Fee increase would produce $1 million revenue per year, equivalent to $6/RUE on the Sewer Service Charge. The proposed Developer Rates and Charges increase would produce approximately $250,000 per year, equivalent to $2/RUE on the Sewer Service Charge. Ms. Farrell reviewed the Main Buy-In Fee concept. Capacity Fees are to buy-in to plant, pumping stations, and interceptors. Mains are generally contributed by developers or installers. Connectors buy-in to mains through purchase of a new home where costs are included (70 percent), installation of their own main sewer (10 percent), or connection to installer sewer and reimbursement (10 percent). There is an equity issue. In 10 percent of the cases, connection is made to the sewer with no reimbursement, essentially a free connection. In these cases, a Main Buy-In Fee of $2,961/RUE could apply. A Main Buy-In Fee could be justified but it is complex because the mains were actually contributed by the developers. Staff recommends further study to see if any other agencies are doing this, whether it could withstand a potential protest, and 06 05 03 236 06 05 if it is the right thing to do? Assuming 10 percent would pay the Main Buy- In Fee, it would generate about $350,000 a year, equivalent to $2.50/RUE on the Sewer Service Charge. Ms. Farrell presented the following staff recommendation: . Begin outreach on . Developer Rates and Charges increases Capacity Fee increases using a model where service life is increased . . Set Public Hearings for August 7,2003 to consider . . . Defer . . . Increased Capacity Fees Increased Developer Rates and Charges Evaluation of Main Buy-In Fees Evaluation of Environmental Rates and Charges (except Cost of Living Adjustment) Investigation of land valuation and impact on Capacity Fees Ms. Farrell stated that the items recommended to be deferred will be brought back to the Board next year. 5) Mr. Batts, General Manager, announced that today at 4:00 p.m., the District is co-hosting an Environmental Sciences Collaborative meeting along with Cal State Hayward. Dr. Mario Menesini is Co-Chair of this inaugural meeting, the purpose of which is to begin discussions with the environmental and educational community to determine how best to strengthen environmental-based education programs in Contra Costa County. Because the meeting begins at 4:00 p.m., Member Menesini will have to leave the Board Meeting early. 6) Mr. Batts, General Manager, announced that the District just received the signed agreement from Howard and Lettie Toy Siu for the Went Ranch Offsite Sewer easement acquisition, outside the one week deadline set by the Board. Project construction has started with survey and pre-site evaluation. These new developments came up after the deadline for posting the Board meeting agenda and Board action is required prior to the next Board meeting. The Brown Act provides that an item can be added to the agenda by two-thirds vote of the Board, or unanimous vote if less than two-thirds of the Board Members are present, if the item came to the attention of the District subsequent to the deadline for posting the agenda and immediate action is required. It was moved by Member Boneysteele and seconded by President Nejedly, that in accordance with Government Code Section 54954.2(b)(2), the Board of Directors of the Central Contra Costa Sanitary District determines that new developments relating to the Siu agreement for the Wendt Ranch Offsite Sewer easement acquisition and the need to take immediate action came to the attention of the District subsequent to the agenda being posted, and that the item be added to the agenda for consideration by the Board in closed session. There being no objection, the motion was unanimously approved with all Board Members being present. This item will be considered in closed session later in the meeting. 0, (') ð 237 At this time, President Nejedly departed from the order of the agenda to consider Item 5.d., Board Member Reports. d. BOARD MEMBERS 2) 3) Member Menesini distributed and reviewed the notes from the May 29, 2003 Board Outreach Committee meeting at which topics of discussion included the Quarterly Community Outreach Report, the San Ramon Force Main Project survey, news releases and press coverage, the annual Pollution Prevention Awards, the Household Hazardous Waste Small Business brochure and survey, and status reports of various projects and activities including the Dental Outreach Program relative to Mercury and the Backwater Overflow Prevention Device outreach. Member Menesini distributed and reviewed notes from the May 29, 2003 Board Personnel Committee meeting, at which authorization to begin recruitment in accordance with the 2003-2004 Staffing Plan was requested and endorsed for two Plant Operator 1111 positions (both as Trainees), two Maintenance Crew Member 1111 positions (one as a Trainee), and one Pumping Stations Operator 1/11 position (as a Trainee). Member Menesini excused himself and left the meeting at the hour of 4:00 p.m. President Nejedly reverted to the order of the agenda. a. GENERAL MANAGER 7) 8) 9) Mr. Batts, General Manager, announced that the District is advertising for bids for the Contra Costa Boulevard Sliplining Project, DP 5678. Construction is expected to occur in mid to late August. The engineer's estimate for the work is $450,000. Mr. Batts, General Manager, announced that the District is advertising for bids for the Cured in Place Pipe Project, DP 5246. Construction for this project is also expected to occur in mid to late August. The engineer's estimate for the work is $270,000. Mr. Batts, General Manager, announced that Philip Services Corporation filed for Chapter 11 bankruptcy on June 3, 2003. Philip Services is the contractor for the District Household Hazardous Waste Collection Facility and the satellite collection events. Staff has been in contact with Philip Services to ascertain the impact to the District, and has been assured that the company will continue to fulfill their contractual obligation to the District and will continue to maintain their insurance coverage. 10) Mr. Batts, General Manager, announced that on June 14, 2003 the District will conduct a household hazardous waste mobile collection event in Danville. Like the past several mobile collection events, this will be a joint household hazardous waste and electronic waste collection event. The mobile collection event is by appointment. So far 720 customers have requested appointments out of the 850 available slots. 11 ) Mr. Batts, General Manager, reported on the May 27 San Ramon City Council meeting attended by Director of Engineering Ann Farrell and Capital Projects Division Manager Bill Brennan. Ms. Farrell and Mr. Brennan reported on the investigation of the roof fire at the San Ramon Pumping Station. Correspondence had already been sent to the San Ramon Public Works Director concerning the cause of the fire and the corrective actions taken by the District. 12) Mr. Batts, General Manager, announced that as part of their municipal services review, the Local Agency Formation Commission (LAFCO) has asked special districts to make brief presentations at the June 11 LAFCO 06 05 03 238 13) 14) b. meeting. Ms. Bette Boatmun, Chair of the Contra Costa Special Districts Association will introduce the presentations. Mr. Batts stated that he will be making a presentation at that meeting. Mr. Batts, General Manager, announced that the District is sponsoring training in Integrated Pest Management for the Master Gardeners on three Wednesdays in June. The training will qualify the Master Gardeners to give public workshops in Less Toxic Gardening and to distribute information to the public at garden fairs and other public events. Last year the Master Gardeners got the District's message on pesticides and water quality to thousands of residents. In response to a question from Member Lucey, Mr. Batts provided a brief report with regard to the Moraga and Orinda Crossroads Pumping Stations pump vibration issues. Letters have been sent to the manufacturer of the pumps. Two more modifications were tried by Morris Pump to bring the pumps into specifications. As the Board understands, two other pump manufacturers are being considered for this installation. Staff is trying to arrange for delivery and testing of a new Cornell pump. Mr. William E. Brennan, Capital Projects Division Manager, stated that this will be a no-cost rental. The pump is expected by the middle of July. If it meets the test conditions it could be installed before wet weather. Member Lucey asked that this item be calendared for a report each month until the issues are resolved. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1) 2) 3) Member Hockett reported on the May 22,2003 Sanitation and Water Agencies of Contra Costa County meeting at which new storm water requirements for development and redevelopment were discussed. Non- point source dischargers are now being required to collect and treat runoff for new development and redevelopment. Report of the May 29, 2003 Outreach Committee meeting was taken out of order earlier in the agenda. Report of the May 29, 2003 Personnel Committee was taken out of order earlier in the agenda. BREAK At 4:12 p.m., President Nejedly declared a recess, reconvening at the hour of 4:24 p.m. with all parties present as previously designated with the exception of Member Menesini who was absent. 06 05 0 '.:~ "0 239 9. HUMAN RESOURCES a. APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE MANAGEMENT GROUP EFFECTIVE APRIL 18. 2003 THROUGH APRIL 17, 2006 Member Lucey questioned the three-year term of the proposed Memorandum of Understanding with the Management Group and requested that consideration of this item be put off for two weeks. 10. CORRESPONDENCE a. RECEIVE E-MAIL DATED MAY 28.2003 FROM JAN ADAIR OF WALNUT CREEK COMMENDING AND THANKING CONTRACT ADMINISTRATOR KEN CLARK FOR HIS WORK IN OVERSEEING REPAIRS TO THE SEWER MAIN AND MANHOLE ON IRIS LANE IN WALNUT CREEK President Nejedly and the Board of Directors acknowledged receipt of the e-mail from Jan Adair of Walnut Creek and commended Mr. Ken Clark, Contract Administrator, for his work overseeing repairs to the sewer main and manhole on Iris Lane, Walnut Creek, and for his excellent customer service. 11. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED JUNE 5. 2003 Member Lucey, Chair of the Budget and Finance Committee, stated that he and President Nejedly reviewed the expenditures. It was moved by Member Lucey and seconded by President Nejedly, that the Expenditure List dated June 5,2003, including Self Insurance Check Nos. 102011- 102013, Running Expense Check Nos. 144743-144971, and Sewer Construction Check Nos. 25628-25681 J be approved as recommended. There being no objection, the motion was approved with Member Menesini being absent. 12. BUDGET AND FINANCE a. RECEIVE APRIL 2003 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance (O&M) for the month of April 2003, noting that expenditures were $144,000 less than budget, representing a 4.3 percent favorable variance. Year-to-date O&M expenditures were $3 million less than budget, representing an 8.9 percent favorable variance. Year- to-date O&M revenues were $32.9 million, 0.7 percent greater than budget. Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $18,442,000, $1.7 million less than expenditures of $20,176,000. Ms. Ratcliff noted that these figures are net of Dougherty Valley expenses and reimbursements. Ms. Ratcliff reported that the District's temporary investments were held in commercial paper and the District's Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF account through April 2003 was 1.86 percent. President Nejedly declared that the April 2003 Financial Statements were duly received. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 06 05 03 240 14. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS It was noted that earlier in the agenda, Member Lucey requested that a report be calendared each month on the Moraga/Orinda Crossroads Pumping Stations pump vibration issues until the matter is resolved. 15. CLOSED SESSION Member Lucey requested that a closed session be added to the agenda to instruct negotiators with regard to the Management Group Memorandum of Understanding. It was moved by Member Lucey and seconded by Member Hockett, that in accordance with Government Code Section 54954.2(b)(2), the Board of Directors of the Central Contra Costa Sanitary District determines that issues relating the Management Group labor contract proposal and the need to take immediate action came to the attention of the District subsequent to the agenda being posted, and that the item be added to the agenda for consideration by the Board in closed session. There being no objection, the motion was unanimously approved with Member Menesini being absent. It was noted that a closed session relating to existing litigation with Howard Siu and Lettie Toy Siu was added to the agenda earlier in the meeting. a. 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 Director of Administration Randall M. Musgraves and Secretary of the District Joyce E. Murphy, and the pertinent employee organizations are the Central Contra Costa Sanitary District Employees Association Local 1 and the Management Group. b. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation to be discussed is CCCSD v. Howard Siu and Lettie Toy Siu, et ai, Contra Costa County Superior Court Case No. C03-00968. At 4:30 p.m., President Nejedly declared the closed session to discuss labor negotiations pursuant to Government Code Section 54957.6 and existing litigation pursuant to Government Code Section 54956.9(c) as noted above. At 5:05 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. 16. REPORT OF DISCUSSIONS IN CLOSED SESSION President Nejedly reported that the Board did not adopt the Management Group Memorandum of Understanding, but sent it back to the negotiating committee. Mr. Kenton L. Aim, Counsel for the District, reported that the Board authorized execution of a stipulated judgment with Howard Siu and Lettie Toy Siu with a number of conditions including payment of $110,000 for easements required for the Wendt Ranch Offsite Sewer Project. 17. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 5:06 p.m. 06 05 OQ , .....,. c. Pre' Émt of the Board f Directors, C ntral Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Secre f the Central C tra Costa Sanitary District, County of Contra Costa, State of California 06 05 241 03