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HomeMy WebLinkAboutBOARD MINUTES 12-20-01 34 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 20, 2001 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 December 20, 2001. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Lucey, Boneysteele, Hockett ABSENT: Members: Menesini Member Menesini had advised staff 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. b. ELECTION OF DISTRICT BOARD PRESIDENT AND PRESIDENT PRO TEM FOR 2002 It was the consensus of the Board, with Member Menesini being absent, to continue the election of the District Board President and President pro tem to the January 10, 2002 Board Meeting when all Board Members can be present. c. RECOGNIZE DAVE ROBBINS ON HIS PROMOTION TO PLANT MAINTENANCE SUPERINTENDENT President Hockett and the Board of Directors congratulated Plant Maintenance Superintendent Dave Robbins on his recent promotion. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Boneysteele and seconded by Member Lucey, that the Consent Calendar, consisting of Items a. through d., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The Grant of Easement for a sanitary sewer easement at 3035 Castro Street, Martinez, from John G. Martinez and Sharon E. Martinez was accepted; staff was authorized to record said Grant of Easement with the Contra Costa County Recorder; and Resolution No. 2001-150 was adopted to that effect. Motion approved on the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini 12 20 01 None a. 35 b. The Grant of Easement from Marilouise S. Lewis for a sanitary sewer easement at 24 Southwood. Drive, Orinda, was accepted; staff was authorized to record saId G~an't of Easement with the Contra Costa County Recorder; and Resolution No. 2001-151 was adopted to that effect. Motion approved on the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini c. The real property agreement with James and Carolyn Mitchell, Job 1572, Orinda, was approved; the President of the Board of Directors and the Secretary of the District were authorized to execute said agreement; recording with the Contra Costa County Recorder was authorized; and Resolution No. 2001-152 was adopted to that effect. Motion approved on the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini d. The contract work for the Orinda Trunk Sewer Cured-in-Place (CIP) Pipe Project, DP 5551, was accepted and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Boneysteele, Lucey, Nejedly, Hockett NOES: Members: None ABSENT: Members: Menesini 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 5. REPORTS GENERAL MANAGER 1 ) Mr. Charles W. Batts, General Manager, introduced Ms. Ann E. Farrell, Director of Engineering, who provided an update on the San Ramon projects. Ms. Farrell reported that on December 11, 2001, the San Ramon City Council considered the District's San Ramon Pumping Station Renovation Project. District engineering and legal staff, consultants, and architect were prepared to answer any questions. The San Ramon City Council asked only two questions. The first was whether the District would be using the flood control road for access. The City Council was advised that the District would not be using the flood control road for access. The second question dealt with possible overflows from the pumping station during construction. The City Council was advised that there was language in the contract documents dealing with overflows and District staff did not believe that would be an issue. In addition, the Regional Water Quality Control Board would not permit overflows even during construction. The San Ramon City Council approved the San Ramon Pumping Station Renovation Project with 12 20 01 36 12 four Council Members voting yes and Council Member Abram Wilson being absent. Ms. Farrell reported that one resident submitted a letter after the City Council meeting with some concerns which District staff are addressing. Ms. Farrell reported that public meetings relative to the San Ramon Force Main Project have been scheduled for January 9, 11, and 12, 2002. Those meetings will be attended by District project staff and Community Affairs staff. Displays will be used and staff will be available to answer questions and get input from the public. District staff is also meeting with staff from Contra Costa County, East Bay Regional Park District, City of San Ramon, and Sunset Development, owners of Bishop Ranch relative to the project. Ms. Farrell stated that it appears that the pipeline can be installed beside the trail so there should be very little impact. 2) Mr. Batts, General Manager, introduced Dr. Gail Chesler, Associate Engineer, who provided an update on the District's Environmental Impact Report (EIR) process relating to the effluent discharge limit increase. The Draft EIR has been distributed to 101 addressees. A public meeting was held on December 12, 2001, at the District's Walnut Creek offices. No members of the public came to that meeting. Dr. Chesler stated that the project is an increase in the effluent discharge limit which will be used by the treatment plant, and noted that the Draft EIR previously distributed to the Board includes a short project description, direct and indirect effects and background information, discussion of the growth issues and secondary effects, other California Environmental Quality Act (CEQA) considerations, and references and persons/agencies consulted. Dr. Chesler reviewed the next steps and schedule which culminates with a public hearing and Board consideration and vote on March 22, 2002. A brief discussion followed in which it was noted that there have been no further comments from Fish and Wildlife. The only other comment received to date is a letter from CalTrans indicating that the project will have no impact on the transportation system. 3) Mr. Batts, General Manager, introduced Plant Operations Division Manager Doug Craig and Shift Supervisor Steve Colberg to provide an update on Electronic Operations and Maintenance Manuals. Mr. Batts stated that Mr. Colberg has devoted an admirable amount of talent and energy to this project. Mr. Doug Craig, Plant Operations Division Manager, stated that there are now regulatory requirements in the District's National Pollutant Discharge Elimination System (NPDES) permit requiring that Operations and Maintenance (O&M) manuals be kept up-to-date at all times. When the District's NPDES permit was being renegotiated, Regional Water Quality Control Board staff came out to the District and reviewed the O&M Manuals. Online electronic O&M manuals will provide rapid access to accurate and critical information, and can be used for interactive training anytime. Existing information is now being assessed and converted, and a website is being developed on the District's Online Total Information System (OTIS). Future efforts will include continuing update of information and conversion of manuals and data. The system architecture will be improved, a new server will be added, and the video system will be updated. Mr. Craig stated that the estimated equipment cost is $25,000 to $30,000. Mr. Steve Colberg, Shift Supervisor, described where the system is located how it works with the other District systems, and demonstrated the system. Internet technology was used to build the system. Operating procedures, operating guidelines, and a wealth of information that has been developed over time will be incorporated into the system. By this means, the people who need to use the information can get it. Mr. Colbert demonstrated the 20 01 4) b. c. 37 three ways the information can be accessed: 1) drill down, 2) pull down, and 3) search capability. The server will make an online connection or link t;' "....""",", '" ' '." to other existing data bases: 'Mr. Colberg stated that input was requested from potential users of the information, and additional features were added, such as out of service equipment, work orders, and associated material requisitions. Mr. Colberg stated that the system is being expanded to include the wealth of information available throughout the District. Discussion followed with regard to involvement of MIS and stakeholders through the Intranet Committee, and MIS coordination of all the District systems and related projects. MIS maintains oversight of the hardware and network, and departmental staff works with MIS to insure that software and uses are compatible with other District software and systems. Mr. Colberg continued the demonstration, demonstrating the use of the system as a training and supervision tool. Mr. Colberg stated that as many images as possible will be incorporated into the system with textual information. This system will allow information that is now maintained in various locations to be kept current and maintained in one place. It will also be possible in the future to incorporate the many District training and informational videos into the system, making the information more accessible and widely available to District staff. Mr. Batts thanked Messrs. Craig and Colberg for the update and indicated that this is similar to the Geographic Data Information work and information recently presented to the Board by Mr. Bill Clement, Engineering Support Supervisor. Mr. Batts, General Manager, stated that as part of the Moraga and Orinda Crossroads Pumping Stations Renovation Project, three new electric dry weather pumps were installed at each pumping station to provide increased pumping capacity. The value of the six pumps is $260,000. The pump supplier, Morris Pumps, was one of the named pump suppliers. The pumps do not meet the vibration specification and Morris Pumps has attempted "Band Aid" fixes since October 2001. The problems still exist and such fixes are not acceptable to the District. Engineering staff has now involved District Counsel Kent Aim in this matter. Mr. Aim's office has hired a vibration consultant to take independent measurements on the pumps and to advise the District as to the reliability of the proposed fixes from the manufacturer. The contractor GSE, the manufacturer, and District staff are working cooperatively to solve this problem. District staff will do their best to resolve this issue, but there is a possibility of litigation. Mr. Batts stated that he will keep the Board informed. 5) Mr. Batts, General Manager, announced that he will be on vacation from December 28, 2001 through January 5, 2002, returning to work on January 7, 2002. 6) Mr. Batts, General Manager, wished the Board the very best of holidays and stated that he is looking forward to working with the Board in the New Year. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, reported on Administrative Support Section staffing with the recent resignation of Administrative Support Supervisor Dianne Koutz. Member Boneysteele, Member of the Personnel Committee, stated that these issues were discussed by telephone 12 20 01 38 with the Personnel Committee and he and Member Menesini endorse the request to increase the Administrative Assistant position from three-quarters to full time. The request to increase Administrative Assistant position from three-quarters to full time was approved with Member Menesini being absent. 2) Ms. Murphy, Secretary of the District, distributed the Key Contract List dated December 2001 and indicated that the list will be updated quarterly. d. BOARD MEMBERS None 6. ADMINISTRATIVE a. ADOPT A RESOLUTION APPOINTING DIRECTOR OF ADMINISTRATION RANDALL M. MUSGRAVES SECRETARY PRO TEM Mr. Batts, General Manager, stated that it has been the District practice to delegate authority to the Director of Administration to act in the absence of the Secretary of the District. It is recommended that the Board adopt a resolution appointing Mr. Randall Musgraves, Director of Administration, Secretary pro tem. It was moved by Member Boneysteele and seconded by Member Nejedly, that Resolution No. 2001-153 be adopted, appointing Director of Administration Randall M. Musgraves Secretary pro tem. Motion approved on the following vote: AYES: Members: Boneysteele, Nejedly, Lucey, Hockett NOES: Members: None ABSENT: Members: Menesini b. RATIFY AND CONFIRM DELEGATION OF AUTHORITY TO GENERAL MANAGER Mr. Batts, General Manager, stated that as previously discussed with the Board, District Counsel has recommended that the Board adopt a resolution ratifying and confirming delegation of authority to the General Manager. Based on the Board's direction at the last Board Meeting, delegation of authority to the General Manager to sign the title page of specifications and all documents prepared and circulated as part of the public competitive bidding process was added to the position paper before the Board for consideration. Mr. Batts stated that he will continue to advise the Board of major upcoming capital projects, engineer's estimates, and bidding schedules. It was moved by Member Boneysteele and seconded by Member Nejedly, that Resolution No. 2001-154 be adopted, ratifying and confirming delegation of authority to the General Manager to execute documents for and on behalf of the District. Motion approved on the following vote: AYES: Members: Boneysteele, Nejedly, Lucey, Hockett NOES: Members: None ABSENT: Members: Menesini 12 20 01 39 7. HUMAN RESOURCES a. - . , CREATE ONE SOURCE CONTROL INSPECTOR 1/11 POSITION: RECLASSIFY KEN NULL TO THE POSITION OF SOURCE CONTROL INSPECTOR I (G-60. $3.859- $4.787): DELETE THE POSITION OF COLLECTION SYSTEM OPERATIONS TECHNICIAN (G-59. $3.771-$4.677) Mr. Batts, General Manager, stated that at a previous Board Meeting, the Board directed staff to meet with Mr. Ken Null, Collection System Operations Technician, about his request to be promoted to a Source Control Inspector II instead of a Source Control Inspector I. District staff met with Mr. Null and the Union on this issue and no agreement was reached. Staff explained the minimum qualifications required for the Source Control Inspector II level; and indicated that even with his extensive experience, Mr. Null does not meet those qualifications. Consequently, staff is recommending that Mr. Null be reclassified as Source Control Inspector I. Mr. Null will receive training and will have a promotional career ladder to the II level if he so chooses. Mr. David Rolley, of Public Employees Union Local One and the CCCSD Employees Association, addressed the Board, stating that Mr. Null is considered an expert in the field of grease control. People in the field consult Mr. Null. Mr. Null works quietly; he is a problem solver; and he has improved ways of controlling and eradicating grease. Mr. Rolley requested that the Board recognize where Mr. Null is in his career and promote him to the Source Control Inspector II level. Mr. Jere Copeland, Business Agent for Public Employees Union Local One, concurred with Mr. Rolley's statements. Mr. Copeland stated that he did meet with District staff on this issue. Unfortunately, District staff listened but did not change their position. Mr. Copeland requested that the Board consider appointing Mr. Null to the Source Control Inspector II level, recognizing his experience in place of the required education. Mr. Ken Null addressed the Board, reviewing his background and experience, his design of a computer program to manage the grease control program, and his skills as a problem solver and an out-of-the-box thinker. Discussion followed with regard to Mr. Null's preferences and career plans. Member Lucey stated that he has read all of the documents and Mr. Rolley's letter. Mr. Null is getting a promotion and he and the Union indicate it is not enough of a promotion. But it is a promotion; and Mr. Null has the opportunity to move to a higher level when he meets the requirements, just as the other employees in the same classification. Following discussion, it was moved by Member Lucey and seconded by Member Boneysteele, that one Source Control Inspector 1/11 position be created; that Mr. Ken Null be reclassified to the position of Source Control Inspector I (G-60, $3,859-$4,787); and that the position of Collection System Operations Technician (G-59, $3,771-$4,677) be deleted. There being no objection, the motion was approved with Member Menesini being absent. 8. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED DECEMBER 20. 2001 Member Lucey, Chair of the Budget and Finance Committee, stated that he and Member Nejedly reviewed the expenditures and all questions were answered. It was moved by Member Lucey and seconded by Member Nejedly, that the Expenditure list dated December 20, 2001, including Self Insurance Check Nos. 101810-101823, Running Expense Check Nos. 135625-136033, Sewer Construction Check Nos. 24042- 24106, Payroll Manual Check Nos. 48807-48808, and Payroll Regular Check Nos. 53903- 53940, be approved as recommended. There being no objection, the motion was approved with Member Menesini being absent. 12 20 01 40 9. BUDGET AND FINANCE a. BUDGET DISCUSSION WITH BOARD OF DIRECTORS Mr. Batts, General Manager, stated that in preparation for the upcoming budget workshop he would like to engage the Board in discussion of what the Board would like at the workshop in January. At the January budget workshop, staff will present the existing $24 Sewer Service Charge rate increase; staff will review proposed reductions in the Operations and Maintenance (O&M) Budget and District programs; staff will review capital projects deferred from the current Capital Improvement Budget; and staff will propose scenarios for possible debt financing of future capital projects. Mr. Batts stated that the goals of the discussion today are to lay the foundation for the workshop and budget process; to receive Board direction to staff; and to discuss possible budget options including review of the $24 Sewer Service Charge, the impact of rate changes on the rate setting process, possible reductions in O&M expenses, deferral of capital projects, and debt financing as rate relief. Mr. Batts stated that in the budget process, internal issues are considered, including the District's strategic goals. The strategic goal of reasonable, responsible rates is sometimes at odds with other District goals of excellent customer service and full regulatory compliance. The concept of "funds required" is being used to determine the minimum level of reserves that should be available. Calculations are being made of "funds required" to pay the District bills until revenues are received from the County. In recent years, District reserves have intentionally been drawn down. This has been done through deficit spending, accelerated projects, declining interest, and decreased connection fees. The impact of future Memoranda of Understanding (MOU) negotiations must be considered. Labor and benefits make up 70 percent of the District's O&M Budget. Medical benefits are expected to be up 12 to 14 percent next year and increases in retirement costs are anticipated as well. New and proposed regulations could impact the District budget, including Sanitary Sewer regulations and CMOM (Capacity, Management, Operations and Maintenance), The District's new National Pollutant Discharge Elimination System (NPDES) permit requires additional studies, and new pollutants and mass limits will likely impact the budget. The Regional Water Quality Control Board indicates that pollution prevention will be a strategy in future NPDES permits. Mr. Batts stated that external factors also must be taken into account. The State budget deficit has changed the expectations of other agencies that the District's deals with and more may be expected of the District. The potential for loss of ad valorem revenue continues. The slow economy means less capital revenue for the District. This in turn puts more pressure on the Sewer Service Charge. Interest used to be up to 10 percent of the income for the District. With decreasing interest rates and a decreased reserve balance, interest is now about 5 percent of District revenues and is continuing to fall. Delay in construction in the Dougherty Valley and the slow economy are significantly impacting connections and associated revenue. Mr. Batts stated that during the 2001-2002 rate setting process, a $24 Sewer Service Charge rate increase was approved for three years contingent on reviewing the need for the rate increase in subsequent years. At the time of rate setting, funds available equaled funds required, but the impact of moving the San Ramon projects up was unknown. Acceleration of the San Ramon projects in the settlement agreement with the City of San Ramon and the developers indicated a need for debt financing. Mr. Batts reviewed the situation as we begin the 2002-2003 rate setting process and consider the need for the $24 Sewer Service Charge rate increase. Funds available may not equal funds required. The San Ramon commitments will be met, and some capital projects will be deferred. Debt financing will still be needed. The cost increases in the 2002-2003 budget are due primarily to inflation and labor cost increases, and escalation of the San Ramon projects. Revenues are primarily lower because of deficit spending and decreased revenue from connection fees and interest income. Mr. Batts stated that other options are being looked at to cut discretionary spending in areas such as education programs, pollution prevention, training, and supplies. But there is only so much that can be cut, and all of these cuts would be less than 10 percent of the non-labor O&M Budget. Staff is looking at limiting major maintenance repairs and sewer repairs and replacements, but that also is less than 10 percent of the non-labor total. Mr. Batts stated further that he is reviewing all hiring decisions to determine if staffing can be reduced. Deferring major construction projects such as the Lower Orinda Pumping Station, M-4A Forcemain, and other sewer projects 12 20 01 41 is being evaluated. Consideration is being given to bond financing for future construction projects. Staff is working to develop a strategy for increasing revenues. Mr. Batts reviewed and requested Board input on the following proposed scenarios for the January budget workshop: . Presentation of proposed baseline budget without additional cuts in O&M or capital programs; . Presentation of budget with 10 percent reduction from baseline in both O&M non-labor and capital per Member Lucey's request; . Presentation of 5-year rate projections using $24 for 2002-2003 and 2003- 2004; . Projection of relief provided by bond financing for both scenarios; and . Presentation of any other Board requested projections. Mr. Batts reviewed the 2002 rate setting schedule, beginning today with any direction from the Board concerning budget or rate setting alternatives, a budget workshop on January 24, 2002, six-month review of variances to the 2001-2002 O&M Budget on February 24, 2002, inclusion of budget and rate story in Pipeline newsletter in April 2002, public notice of public hearing on budget and rate issues in May 2002, budget presentation to the Board on May 16, 2002, confirmation of the budget by the Board on June 6, 2002, and final adoption of the budget by the Board on June 20, 2002. Discussion followed with regard to the location and format for the January 24 proposed budget workshop. It was the consensus of the Board, with Member Menesini being absent, that the January 10, 2002 Board Meeting be adjourned to the multipurpose room for a budget workshop on January 24, 2002. There will not be a regular Board Meeting on January 24. Mr. Batts stated that at the two budget workshops held in the past two years, a great deal of information was covered. That information will be supplied to the Board again, but staff will not go into detail unless the Board wishes. It is proposed that budget workshop focus primarily on the various scenarios, what O&M cost reductions could be cut, capital projects that could be deferred, and Sewer Service Charge rate setting scenarios. Mr. Batts requested any additional direction from the Board or any other information the Board may wish to have for the January budget workshop. Member Lucey asked to have information on the amount that the average residential home in the District pays to the District in ad valorem taxes in addition to the Sewer Service Charge. Mr. Batts stated that information will be provided. Member Lucey stated that every year there are unanticipated items. This year it was escalation of the San Ramon projects. Last year it was the energy crisis. Now energy costs have dropped significantly. Member Lucey asked how much the District has saved over what was budgeted for natural gas and electricity. Mr. Batts indicated that that information can be provided. Discussion followed with regard to language in the Sewer Service Charge ordinance adopted by the Board last year. Mr. Kenton L Aim, Counsel for the District, read the pertinent sections of Ordinance No. 218. Mr. Aim stated that if the Board takes no action, the Sewer Service Charge rates would be set as approved by the Board last year with a $24 increase each year in years 2002-2003 and 2003-2004. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12 20 01 42 11. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Boneysteele, member of the Board Personnel Committee, announced that he has discussed staffing and technological issues relating to the District's Records Management Program with the Secretary of the District. This matter will be discussed further by the Board Personnel Committee. 12. ADJOURNMENT There being no further business to come before the Board, President Hockett wished everyone happy and safe holidays and adjourned the meeting at 3:40 p.m., to reconvene in Adjourned Regular Session at 2:00 p.m. on January 10, 2002. 41cUW ~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se re ar of the Central ontr, Costa Sa . ry District, County of Contra Costa, State of California 12 20 01