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HomeMy WebLinkAboutBOARD MINUTES 05-22-03 218 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 22, 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 May 22, 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. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. ACKNOWLEDGE RECEIPT OF ASSOCIATION OF METROPOLITAN SEWERAGE AGENCIES 2003 NATIONAL ENVIRONMENTAL ACHIEVEMENT PUBLIC SERVICE AWARD BY BOARD MEMBER PARKE L. BONEYSTEELE Mr. Charles W. Batts, General Manager, stated that it gives him great pleasure to acknowledge Board Member Parke L. Boneysteele who received the Association of Metropolitan Sewerage Agencies (AM SA) 2003 National Environmental Achievement Public Service Award in Washington, D.C. earlier this week. This award is for outstanding leadership and public service in a large (greater than 250,000) community. Member Boneysteele has helped to guide the District through more than 30 years of growth and expansion, as well as the many challenges accompanying organizational and regulatory change. Member Boneysteele stated that he gave an acceptance speech when he received the award in which he quoted Woody Allen, who stated that success was just 90 percent showing up, and the other 10 percent was knowing when to get off the stage. Member Boneysteele thanked the Board and staff for their support. The Board and staff congratulated Member Boneysteele. Mr. Batts stated that the AMSA meeting focused on the status and future of current proposed environmental legislation and regulation, with major concern for having the federal government share in the cost of infrastructure replacement, in much the same manner as the Clean Water Act. Mr. Batts distributed copies of a publication entitled Why Not Water? that makes that case. 4. CONSENT CALENDAR Following discussion of the East Bay Regional Park District exchange of easements, it was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. A Grant of Easement was accepted from the East Bay Regional Park District in connection with the Martinez Eastside Trunk Sewer Project, District Job 4950; 05 2~~ O.i..O.". , ( ti) 219 existing easements on the same land were quitclaimed to East Bay Regional Park District; staff was authorized to record said documents with the Contra Costa County Recorder; and Resolution Nos. 2003-034 and 2003-035 were adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: b. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None The contract work for the Treatment Plant Concrete Rehabilitation Project, DP 7213, was accepted, and filing of the Notice of Completion was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly None None June 5, 2003 at 2:00 p.m. was established as the date and time for a public hearing regarding the Echo Springs Road Contractual Assessment District No. 2001-2 pursuant to California Constitution, Article XIIID, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24 and Resolution No. 2003- 036 was adopted to that effect. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: d. Hockett, Menesini, Lucey, Boneysteele, Nejedly None None June 5, 2003 at 2:00 p.m. was established as the date and time for a public hearing regarding the EI Alamo Contractual Assessment District No. 2002-2 pursuant to California Constitution, Article XIIID, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24, and Resolution No. 2003-037 was adopted to that effect. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly None None 5. HEARINGS CONDUCT A PUBLIC HEARING ON THE DRAFT CAPITAL IMPROVEMENT BUDGET CIB FOR 2003-2004 AND THE DRAFT 2003 TEN-YEAR CAPITAL IMPROVEMENT PLAN CIP APPROVE THE 2003 CIP AND APPROVE THE CIB FOR INCLUSION IN THE 2003-2004 DISTRICT BUDGET a. Mr. Batts, General Manager, stated that workshops were held in November, January, and April where the Capital Improvement Budget and Plan were discussed with the Board and the public. The most recent workshop on April 24, 2003, included a detailed presentation of the Budget and Plan as well as project details. Mr. Batts introduced Ms. 05 2'1ì fd 03 220 Ann E. Farrell, Director of Engineering. Ms. Farrell provided an overview of Capital Program estimated revenue for 2003-2004 both with the loss of ad valorem revenue and the status quo and assuming an increase of $13 per residential unit equivalent (RUE) from the Sewer Service Charge going to the Capital Program. Total Capital Program revenue is projected to be $23.7 million in the status quo alternative and $16.8 million in the ad valorem loss alternative. Ms. Farrell presented two spending alternatives, showing expenditures of $25,873,000 for the status quo alternative and $18,700,000 for ad valorem loss alternative. Ms. Farrell stated that the question of whether to continue the District's Contractual Assessment District (CAD) Program was previously discussed with the Board given that the District will potentially lose its ad valorem revenue. When the District began the CAD Program 40 potential CAD areas with 600 homes were identified. Nineteen (19) CAD projects with 218 homes ($2.9 million) have been completed or are under construction. Five (5) more CAD projects with 43 homes are under design. These homeowners were notified that the CAD Program would be sunsetting after the Board workshop where this was discussed and four of the five have come forward and it appears they will finish their projects and the District will spend the $1 million budgeted this year and $300,000 next year as discussed with the Board. That will result in having completed more than 50 percent of the potential CAD's formed in the six years the program has been in place. Ms. Farrell stated that in anticipation of the potential loss of ad valorem tax revenue staff still recommends that the District discontinue the CAD Program at the end of fiscal year 2002-2003, but provide continued funding for all approved projects (estimated at $300,000). Staff would go out into neighborhoods and help facilitate but the District would not fund CAD's in the future. A second alternative would be to authorize $500,000 per year to continue the CAD Program and delete or defer $500,000 of other projects or approve additional funds. Ms. Farrell stated that staff recommends the first alternative and the staff concurred with this approach. Ms. Farrell provided a Capital Improvement Budget summary for fiscal year 2003-2004, stating that estimated program expenditures in the Capital Improvement Budget are $25,873,000 but noted that if ad valorem tax revenue is lost, staff has committed to deferring projects to offset this loss and reduce expenditures to a target amount of $18,700,000. In reality, these deferrals are already occurring in order to keep this option available to the District and not commit funds exceeding the $18,700,000 target. The estimated authorization carryover from the previous fiscal year is $17,949,000, the estimated additional authorization for the 2003-2004 fiscal year is $30,183,000, for a total proposed authorization for fiscal year 2003-2004 of $48,132,000. Ms. Farrell stated that $48.1 million would be needed for all of those projects to go forward, but all of those projects are not planned to go forward because staff is anticipating the District will lose its ad valorem tax revenue. The Board will have an opportunity to vote yes or not on each project as it goes forward. At 2:15 p.m., President Nejedly opened the public hearing to receive comments on the draft Capital Improvement Budget for 2003-2004 and the Draft 2003 Ten-Year Capital Improvement Plan. There being no comments, the public hearing was closed. Discussion followed with regard to the success of the CAD Program, the valuable service it has rendered to the community, and alternative sources of funding available to the community. It was moved by Member Menesini and seconded by Member Hockett, that the draft 2003 Capital Improvement Plan be approved, and that the draft 2003-2004 Capital Improvement Budget be approved for inclusion in the 2003-2004 District Budget. There being no objection, the motion was unanimously approved. b. CONTINUE THE PUBLIC HEARING TO RECEIVE COMMENTS ON ADOPTION OF A PROPOSED ORDINANCE TO AMEND CHAPTER 9.08 OF THE DISTRICT CODE REGARDING REQUIREMENTS FOR BACKWATER OVERFLOW PREVENTION DEVICES UNTIL JULY 17, 2003 Mr. Batts, General Manager, stated that the public hearing to receive comments on the proposed backwater overflow prevention device ordinance was continued to this 05 22 01"'...'.'. G"':.!ì . [' ",,"~~ ¡'v 221 meeting to allow staff time to discuss concerns about the proposed ordinance with representatives of the Contra Costa Board of Realtors. Staff has met with the realtors group who oppose the "point of sale" provisipn; pf the proposed ordinance. The realtors group recognizes the benefits of having a backwater overflow prevention device and has suggested several voluntary efforts they would assist in to educate the public about the importance of having such a device. To further explore such voluntary efforts, and possible amendment of the ordinance, staff requests that the public hearing be continued to July 17, 2003. Following discussion with regard to the District's intent to try to prevent overflows, it was moved by Member Menesini and seconded by Member Lucey, that the public hearing to consider adoption of a proposed ordinance to amend Chapter 9.08 of the District Code regarding requirements for backwater overflow prevention devices be continued to July 17,2003. There being no objection, the motion was unanimously approved. 6. CALL FOR REQUEST TO CONSIDER ITEMS OUT OF ORDER Mr. Batts, General Manager, requested that Item 14.b., Closed Session, be taken out of order. Hearing no objection, President Nejedly proceeded to Item 14.b., Closed Session. 14. CLOSED SESSION 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, Human Resources Manager Cathryn Freitas, and Secretary of the District Joyce E. Murphy. The pertinent employee organizations are the Central Contra Costa Sanitary District Employees Association Local 1 and the Management Group. At 2:25 p.m., President Nejedly declared the closed session to discuss labor negotiations pursuant to Government Code Section 54957.6 as noted above. At 2:48 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 CONSTRUCTION CONTRACT TO D. R. LEMINGS CONSTRUCTION FOR THE ROSSMOOR SEWER IMPROVEMENTS PROJECT, PHASE 8, DP 5638 Mr. Batts, General Manager, stated that four sealed bids were received for the Rossmoor Sewer Improvements Project, Phase 8. The engineer's estimate on the project was $320,000. Bids ranged from $282,000 to $317,000. Staff recommends award to the lowest responsive and responsible bidder D. R. Lemings Construction, Inc. in Concord. Following discussion with regard to outreach to Rossmoor residents, it was moved by Member Hockett and seconded by Member Lucey, that award of a construction contract in the amount of $282,180 for construction of the Rossmoor Sewer Improvements Project, Phase 8, DP 5638, be authorized to D. R. Lemings Construction, the lowest responsive and responsible bidder. There being no objection, the motion was unanimously approved. 05 22 03 222 a. 4) 5) 05 8. REPORTS GENERAL MANAGER 1) Mr. Batts, General Manager, reported that the Governor's May Revision of the State budget has been released and as predicted it is a significant change from the January budget strategy, and relies much more on borrowing and taxes. The State budget deficit is now estimated at $38 billion. The Governor proposes $11 billion in debt financing, $8 billion in new taxes, $16 billion in cuts and savings, and a $2 billion shift from local governments. The Governor has protected schools and local governments. While the Governor's budget revision did not include any additional property tax shifts, Senate Local Government Committee Chair Senator Tom Torlakson has proposed a bill that would apply the 1992- 1993 property tax shift to multi-county districts that did not initially contribute. 2) Mr. Batts, General Manager, stated that there is nothing new to report with regard to the Retirement System. 3) Mr. Batts, General Manager, introduced Ms. Deborah Ratcliff, Controller, who reported that the District's internal auditor Rosemary Belland has completed her review of both District petty cash accounts and travel expense reports. Ms. Belland met with the Board Budget and Finance committee and discussed the findings in detail, and copies of the audits were provided to the full Board. With regard to petty cash, Ms. Ratcliff reviewed the auditor recommendations and staff responses. The auditor recommended that the signature authority list be updated, and that has been completed. The auditor recommended that it is the supervisor's responsibility to ensure receipts are attached, and this was addressed in an employee memo. The auditor recommended that use of the petty cash fund be limited to petty cash transactions, and that was addressed in a memo to the petty cash custodians. The auditor recommended that petty cash be reconciled on a regular basis, and that was addressed in a memo to the petty cash custodians. With regard to travel expense, Ms. Ratcliff reported that the auditor recommended that approval signatures be streamlined. Following review with the General Manager and Department Directors, it was decided that Department Directors will continue to approve travel expense reports. The auditor recommended that a conference registration form be required for reimbursement, and that was addressed in an employee memo. Following discussion of petty cash functions, President Nejedly declared that the Internal Audits of Travel Expenses and Petty Cash be were accepted. Mr. Batts, General Manager, announced that the District's recycled water rates will be increasing 3 percent as of July 1 , 2003 in accordance with the recycled water ordinance adopted by the Board a year ago. This is an automatic annual increase that was built into the ordinance adopted by the Board. No Board action is needed at this time to implement the rate increase. Recycled water rates for customers previously on canal water will increase from $355 per acre foot to $365 per acre foot and customers previously on potable water will increase from $750 per acre foot to $772 per acre foot. Mr. Batts noted that these rates are set at about 80 percent of competing Contra Costa Water District rates. Letters will go out to customers by the end of May announcing the increase and giving the new rates. Mr. Batts, General Manager, reported that Contra Costa County is planning to build a pedestrian bridge on the Iron Horse Trail over Treat Boulevard by the Pleasant Hill BART station. The alignment of this bridge is parallel to and possibly in conflict with existing 60-inch and 30-inch 22 03 b. 223 sewers and within an easement that the District purchased from the County in 1986. None of these issues were covered in the draft mitigated negative declaration. District staffc has been meeting with County staff and attending public meetings on the proposed bridge over the last two years in order to protect the District's existing sewers and easement rights. At this time no official response has been received from the County concerning the District's comments to the negative declaration. District staff will attend the June 3, 2003 Board of Supervisors' meeting to voice the District's needs and concerns so they are addressed in the California Environmental Quality Act (CEQA) documents. 6) Mr. Batts, General Manager, announced that the California legislature has declared the week of May 18 through 24 as National Public Works Week, acknowledging the vital role and investment in California's infrastructure. 7) Mr. Batts, General Manager, announced that on Saturday, May 10, 2003 the District conducted a joint household hazardous waste and electronic waste mobile collection event in Lafayette. Like the past several events, the District paid for the costs of collection and disposal of the hazardous waste and the Central Contra Costa Solid Waste Authority paid for the costs of electronic waste collection and disposal. A total of 1,000 appointments were made. Of this total, 990 customers actually attended the event. Customers came from 12 different communities. Residents from Lafayette represented the largest participating community with 363 participants or 37 percent of the total participation. Senior Household. Hazardous Waste Technician Dave Wyatt worked at the event the entire day. Environmental Services Division Manager Curt Swanson worked at the event in the afternoon. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, stated as the Board is aware, two years ago the District received its new National Pollutant Discharge Elimination System (NPDES) permit. At that time, the District filed a petition for rehearing and asked to have it held in abeyance. The regulations only allow for it to be held in abeyance for two years. Mr. Aim stated that the District is attempting to have it continued to be held in abeyance. East Bay Municipal Utility District (EBMUD) is going through an appeal and there may be adjustments made in their permit that could be beneficial to the District. Staff will report back to the Board. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1) Member Menesini announced that he attended the Raines Melton & Carella open house. 9. APPROVAL OF MINUTES a. MINUTES OF APRIL 24, 2003 It was moved by Member Hockett and seconded by Member Menesini, that the minutes of the adjourned regular meeting of April 24, 2003 be approved as presented. There being no objection, the motion was unanimously approved. 05 2'1ì ..~ 03 224 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 22,3003 President Nejedly, member of the Budget and Finance Committee, stated that in the absence of Member Lucey, he reviewed the expenditures. It was moved by President Nejedly and seconded by Member Lucey, that the Expenditure List dated May 22, 2003, including Self Insurance Check Nos. 102008- 102010, Running Expense Check Nos. 144399-144742, Sewer Construction Check Nos. 25569-25627, Payroll Manual Check Nos. 48905-48907, and Payroll Regular Check Nos. 54499-54530, be approved as recommended. There being no objection, the motion was unanimously approved. 11. BUDGET AND FINANCE a. RECEIVE THE 2003-2004 OPERATIONS AND MAINTENANCE BUDGET Mr. Batts, General Manager, stated that staff met with the Board in January to review the District's Ten-Year Financial Plan. At that time staff discussed the need for a $24 Sewer Service Charge increase for fiscal year 2003-2004 and the likelihood of the loss of some or all of the District's ad valorem tax revenue. The Operations and Maintenance (O&M) Budget was developed with both of those assumptions in mind. A public hearing is scheduled for the first Board Meeting in June. Mr. Batts stated that today Controller Debbie Ratcliff will review the proposed 2003-2004 O&M Budget and Director of Engineering Ann Farrell will summarize the Capital Program revenues, expenditures, and expected Sewer Construction Fund impacts. Ms. Deborah Ratcliff, Controller, stated that the position paper included discussion about the projections for the full year 2002-2003 compared to projected budget for 2003-2004. If there were any significant variances, they were also included in the position paper. Ms. Ratcliff stated that her comments today focus on the budget to budget comparisons. Ms. Ratcliff summarized the 2001-2002 actual, 2002-2003 projected, and 2003-2004 budgeted O&M revenues, expenses, and reserves. Revenues for 2002-2003 are projected to be $41,681,000 at fiscal year end compared to 2003-2004 budgeted revenues of $42,986,000. Expenses for 2002-2003 are projected to be $40,024,000 at fiscal year end compared to 2003-2004 budgeted expenses of $44,033,000. The O&M fund balance at fiscal year end will drop from $7,829,000 to $6,782,000. Ms. Ratcliff provided a 2002-2003 budget to 2003-2004 budget comparison, noting that revenues are budgeted to increase 2.9 percent from $42,761,000 to $42,986,000; expenses are budgeted to increase 6.3 percent from $41,422,000 to $44,033,000; and reserves at the end of next fiscal year are budgeted to decrease by $1,047,000 bringing the O&M fund balance to $6,782,000. Ms. Ratcliff noted that these figures include the $24 increase in the Sewer Service Charge to $272, with $11 of that going to O&M and $13 going to the Sewer Construction Fund for the Capital Program. The O&M Sewer Service Charge used is $218 and the Capital component is $54. Ms. Ratcliff reviewed the key labor costs and the other key costs imbedded in the 2003-2004 O&M Budget as set forth in the handouts provided to the Board. In response to a question from Member Lucey concerning the Workers Compensation increase, Ms. Ratcliff stated that the increase is based on a budget to budget comparison. Ms. Ratcliff indicated that she would get back to Member Lucey with the specific answer to his question. Ms. Ratcliff noted that the District Capitalized Administrative Overhead, which is charged to capital projects and is credited to O&M expense, is being increased by 28.4 percent due to current review of the methodology used in calculating this charge. The proposed increase was presented to the Board at the May 8,2003 Board Meeting. Approval of the 2003-2004 O&M Budget will include approval of the increased Administrative Overhead percentage. 05 2c~ ¡;;; 0, t G"....i~ I ~ ","'ià I .. '<...7 225 Ms. Ann E. Farrell, Director of Engineering, reviewed the Capital Program expenditures for 2003-2004 for the status quo alternative and the ad valorem tax loss alternative. In the status quo alternative Capital Program expenditures are budgeted to be $25,973,000 and in the ad valorem tax loss alternative Capital Program expenditures are budgeted to be $18,700,000. Not only is a deficit projected on the O&M side, a deficit is projected on the Capital side as well. The Capital Program is running in the neighborhood of a $5 million deficit in both the status quo alternative and the ad valorem tax loss alternative. Approximately $2.6 million in debt service is charged to O&M so the deficit in the Sewer Construction Fund is projected to be approximately $3 million in either case, whether the District retains or losses ad valorem tax revenue. President Nejedly thanked staff for the informative presentations and declared that the 2003-2004 O&M Budget was duly received. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 14. CLOSED SESSION a. 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 was Central Contra Costa Sanitary District v. Howard Siu and Lettie Toy Siu, et ai, Contra Costa County Superior Court Case No. C03-00968. At 3:38 p.m., President Nejedly declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a) as noted above. At 4:13 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. b. LABOR NEGOTIATIONS This item was taken out of order earlier in the agenda. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. 16. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 4:14 p.m. COUNTERSIGNED: ~ CL ~-.-4< P Ident of the Board Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California 05 22 03 " ,