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HomeMy WebLinkAboutBOARD MINUTES 04-18-02 131 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 18, 2002 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 April 18, 2002. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Lucey, Boneysteele, Menesini ABSENT: Members: Hockett Member Hockett entered the meeting at the hour of 2:02 p.m. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . RECOGNIZE HEATH CULBREATH ON HIS PROMOTION TO ENGINEERING ASSISTANT III President Menesini and the Board of Directors congratulated Mr. Heath Culbreath, Engineering Assistant III, on his recent promotion. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF CALIFORNIA WATER ENVIRONMENT ASSOCIATION 2001 STATEWIDE AWARD FOR PUBLIC EDUCATION FOR JOINT PROJECT WITH CENTRAL CONTRA COSTA SANITARY DISTRICT. SOUTH BAYSIDE SYSTEM AUTHORITY. AND CITY OF PALO ALTO FOR THE SEWER SCIENCE WASTEWATER LABORATORY PROGRAM Mr. Charles W. Batts, General Manager, stated that the District is very proud to receive the California Water Environment Association (CWEA) 2001 Statewide Award for Public Education for the Sewer Science Wastewater Laboratory Program joint project with South Bayside System Authority and the City of Palo Alto. Mr. Batts introduced Ms. Harriette Heibel, Community Affairs Manager, who stated that she is very pleased that the District received this particular award because the high school program required a great deal of effort to get off the ground. This partnership with South Bayside System Authority and the City of Palo Alto has proved effective. President Menesini commended Ms. Heibel and all those who contributed to this successful program. President Menesini also acknowledged District employees Associate Engineer Andrew Antkowiak, Associate Engineer Don Berger, Associate Engineer Gail Chesler, Chemist II Susan Hasselwander, and Source Control Program Superintendent Tim Potter who gave papers at the CWEA Conference. 04 18 02 132 4. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Lucey, that the Consent Calendar, consisting of Items a. and b., be approved as recommended and resolutions adopted. a. Resolution No. 2002-020 was adopted, amending District Annexation 158 to include Proposed Annexation (P.A.) 02-12 and P.A. 02-11. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None b. Resolution No. 2002-021 was adopted, initiating proceedings to formally annex five separate areas under the title of District Annexation 160. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Lucey, Nejedly, Boneysteele, Menesini None None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONTRACT TO BELLALANEY CONSTRUCTION FOR IMPROVEMENTS AT THE WEST BRANCH PUMPING STATION lOP 6156), AND AUTHORIZE THE GENERAL MANAGER TO ALLOCATE $68.000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT Mr. Batts, General Manager, presented the staff recommendation to authorize award of a construction contract to Bellalaney Construction to install a permanent emergency generator facility at the West Branch Pumping Station. Due to this pumping station's remote location, limited storage capacity, and inclusion in the PG&E rotating outage program, staff recommends upgrading this pumping station to the standard required for larger District pumping stations. That standard is a permanently mounted generator and transfer switch that will automatically start and operate the pumping station during a loss of power. Following discussion, it was moved by Member Hockett and seconded by Member Lucey, that award of contract be authorized to Bellalaney Construction, the lowest responsible bidder, in the amount of $32,700 for the West Branch Pumping Station Improvements Project, DP 6156; and that the General Manager be authorized to allocate $68,000 from the Collection System Program Contingency Account for construction. There being no objection, the motion was unanimously approved. 04 18 o."..~... b..'%1\' . n " ¡¡I " ÆJ 133 b. APPROVE REQUEST FOR RELIEF OF BID FROM MILLARD TONG CONSTRUCTION COMPANY. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO GSE CONSTRUCTION COMPANY.. AND AUTHORIZE PROFESSIONAL SERVICES AGREEMENTS FOR THE SAN RAMON PUMPING STATION RENOVATIONS PROJECT. DP 5460 °, Mr. Batts, General Manager, stated that there are three actions for the Board to consider in the award of the San Ramon Pumping Station Renovations Project contract. First, is to award the project or reject all bids. The District is committed to the construction schedule dictated by the settlement agreement with the City of San Ramon and the Dougherty developers, and staff has gone to great efforts to have the required projects accelerated. The schedule has also been presented to the public as part of the District's outreach on this project. Staff believes that to meet this time schedule requirement, the contract must be awarded. If all bids are rejected, there would be difficulty completing the work during this construction season as required. The second action for Board consideration is the request for relief of bid from Millard Tong Construction Company. On April 3, 2002, sealed bids were opened for the San Ramon Pumping Station Renovations Project. The low bid was submitted by Millard Tong Construction Company of San Francisco. On April 5, 2002, staff received a letter from Millard Tong Construction Company providing explanation regarding a clerical error and requesting that its bid be withdrawn. The staff analysis of this request and the recommendation that Millard Tong Construction Company be granted relief from its bid are presented in the position paper. The third action, in the event that the Board should grant bid relief to Millard Tong Construction Company, is the requirement that the Board evaluate the remaining bids. Staff would recommend that the Board then award a construction contract to the then lowest responsible bidder, GSE Construction Company. Mr. Batts introduced Mr. Ba Than, Senior Engineer and Project Manager for the San Ramon Pumping Station Renovations Project. Mr. Than stated that bids were opened on April 3, 2002. The two lowest bidders were Millard Tong Construction at $3,952,000 and GSE Construction at $5,176,000. Two days after the bid opening, staff received information from Millard Tong Construction that a clerical error was made when entering the price of the four pumps in the spreadsheet. The figure $80,000 was inadvertently listed rather than the actual quotation of $800,000. Although Millard Tong Construction would still be the apparent low bidder, the law does not allow acceptance of the higher price, and the only allowable alternative is to withdraw Millard Tong Construction's original bid. Mr. Than stated that in the event the Board does grant relief to Millard Tong Construction, the next low bidder is GSE Construction in the amount of $5,176,000. This would be the third project GSE Construction has done for the District. The other two projects were the Recycled Water Project and the Moraga/Orinda Crossroads Pumping Stations Renovation Project. Staff has reviewed the GSE Construction bid and concluded that it is responsive. Representatives of both Millard Tong Construction and GSE Construction are present today to answer any questions the Board may have. Mr. Than stated that the difference between the lowest responsive bid and the engineering cost estimate is $1.1 million. It has been determined that there were two reasons for this difference: 1) the lack of vendors who could meet the pump specifications resulted in a lack of competition; and 2) special conditions required by the City of San Ramon in the Conditions of Approval for site construction constraints such as storage, parking, temporary odor control, noise control, and cleanup. Mr. Than stated that in order to bring the project cost down, staff recommends deleting the purchase of two spare pumps for a cost savings of approximately $400,000. Mr. Than stated that the schedule for this project is driven by the settlement agreement with the City of San Ramon and the Dougherty developers mentioned earlier. The proposed project schedule calls for the Board to authorize award of the construction contract at this meeting, issuance of the Notice to Award on April 19, 2002, start of construction approximately June 1, 2002, completion of exterior work by December 31, 2002, and project completion by December 31, 2003. 04 18 02 134 In response to questions from Member Lucey, Mr. Kenton L. Aim, Counsel for the District, stated that the Board is precluded from accepting the amended bid of Millard Tong Construction even though it would be the lowest bid with the clerical error corrected. The Board must either accept the Millard Tong Construction bid as submitted or disqualify it. In response to questions from Member Lucey, Mr. William E. Brennan, Capital Projects Division Manager, stated that GSE Construction is the contractor for the Moraga/Orinda Crossroads Pumping Stations Renovation Project. The pump vibration issues have not yet been resolved on that project. Mr. Brennan stated that until now, GSE has acted professionally to correct those problems. Mr. Orlando Gutierrez, President of GSE Construction, is present to answer any questions the Board may have. GSE Construction, is the contractor and Morris Pump is the supplier of the pumps on that project. Mr. Brennan stated that he does not believe that Morris Pump builds a pump that fits the specifications for the San Ramon Pumping Station Renovations Project. Worthington Pump was the only named supplier for the San Ramon Pumping Station Renovations Project. Mr. Brennan stated that it is District staff's opinion that to date, GSE Construction has behaved responsibly with regard to the pump vibration issues with Moraga/Orinda Crossroads Pumping Stations Renovation Project. The problems with the pumps came up late in the project. GSE Construction was put on notice and has taken action to try to resolve these problems. Attempts have been made to fix the pumps but Morris Pump has not been able to fix them yet. Mr. Aim stated that if the Board does not want to go forward with award of bid because the Board believes there is a substantial question as to whether GSE Construction is a responsible bidder, then a hearing must be scheduled and GSE Construction given an opportunity to present their arguments as to why they are a responsible bidder for this project. The Board then must determine whether or not GSE Construction is a responsible bidder. If the Board determines they are not, then award must be made to the third low bidder or all bids must be rejected. In response to questions from the Board, Mr. Orlando Gutierrez, President of GSE Construction, stated that GSE Construction has met all deadlines. The Moraga and Orinda Crossroads Pumping Stations are operating. The pump vibration issue is unfortunate. The pumps were tested at the factory. With the exception of the pump vibration issue, the project was completed on schedule. GSE Construction assigned Morris Pump the job of coming up with a solution. Meetings have been held to analyze the proposal for a fix with Morris Pump, Pretech (the District consultant), and District staff. On April 2 and 3, 2002, two pumps were retrofitted based on the proposed solution. The vibration diminished but it was still not within the required specifications. Morris Pump is now sending all the data on its testing. Mr. Gutierrez stated that throughout this project, GSE Construction has assured the District it will take care of the problem. Bidders on the Moraga/Orinda Crossroads project were given two choices of pumps and Morris Pump was one of those choices specified in the contract documents. Mr. Gutierrez stated that it is unfortunate there has been this problem, and he is working to try to solve it. At no point has GSE Construction said that it is the District's problem. Theoretically the pumps should not vibrate. The pumping stations can operate at the new capacity and they have operated throughout the winter period. All control systems and electrical systems are working. Efforts are being made to resolve the pump vibration issues. Morris Pump has been responsive to the problem but they are puzzled. This installation required a unique design. Morris Pump was chosen because it was one of the two named suppliers. Discussion followed with regard to the purpose and need for spare pumps, the evaluation of the Morris pumps for use in the Moraga/Orinda Crossroads project, and the use of this pump in many places throughout the country. Member Nejedly stated that this is a $5 million project. If it does not work, the public has a right to hold the Board responsible. District staff has indicated that GSE Construction has acted responsibly to date, but Member Nejedly stated he is not comfortable voting for award of this contract today to GSE Construction not because he does not have faith in the company but because there are issues that need to be addressed. Member Nejedly stated further that he does not agree that the spare pumps should be deleted from the 04 18 02 135 project. If something goes wrong with a working pump, it must be fixed quickly. That is part of the reason the District does not like to have pumping stations. Member Nejedly stated that he will not vote for award of this project to GSE Construction. Member Boneysteele stated that he is a licensed and registered mechanical engineer in the State of California and a graduate of the University of California Berkeley, School of Engineering. Member Boneysteele stated that he last worked on pumps in 1951 but his academic training is that pump vibrations are extremely complex situations. This situation is far above the knowledge of a general contractor who would install these pumps. The solution will come eventually through trial and error. Member Boneysteele stated that he does not think the general contractor is in the slightest way responsible for the pump vibration problem. In response to questions from President Menesini, Mr. Gutierrez described efforts made to date to resolve the pump vibration issues. Mr. Gutierrez stated that the vibration has been reduced but at certain frequencies the pumps have vibration problems within the range of the specifications. Efforts are being made to come up with a further solution. Following discussion, it was moved by Member Hockett and seconded by Member Boneysteele, that the request for relief of bid from Millard Tong Construction Company be accepted, and that staff be directed to return Millard Tong Construction Company's bid bond. The motion was approved with Member Nejedly voting no. It was moved by Member Hockett and seconded by Member Boneysteele, that award of a construction contract in the amount of $5,176,000 for construction of the San Ramon Pumping Station Renovations Project, DP 5460, be authorized to GSE Construction Company, the second lowest responsible bidder. The motion was approved with Member Nejedly voting no. It was moved by Member Boneysteele and seconded by Member Hockett, that the General Manager be authorized to execute a professional services agreement not to exceed $200,000 with Montgomery Watson Harza to review shop drawings and submittals, respond to design questions, evaluate change order requests, and perform site visits to verify compliance with the design intent; and that the General Manager be authorized to execute a professional services agreement not to exceed $50,000 for specialty electrical and instrumentation inspection by another consultant to be selected during the construction period. The motion was approved with Member Nejedly voting no. 7. REPORTS a. GENERAL MANAGER 1 ) Mr. Batts, General Manager, stated that as part of the outcome of the settlement agreement with the City of San Ramon and the Dougherty developers, the District accelerated its future projects near the San Ramon Pumping Station in order to avoid continuing upset and construction in the community. Since this settlement agreement was approved, there have been discussions with the Board as to the need for debt financing those projects in order to help cover the additional costs for accelerating the San Ramon Pumping Station Renovations and Forcemain Projects, and discussion of how fees for the debt financing would be recovered from the Dougherty developers. This infusion of financing is needed in order to have the minimum funds required to carry the District through the months when annual revenue is limited. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who reiterated that bond financing is needed to cover the costs of moving the San Ramon projects forward, to infuse dollars into the Capital Improvement Budget, and the maintain the fund balance required to meet the District's obligations. On April 15, 2002, the proposed financing program was reviewed with 04 18 02 1.36 2) 04 Member Hockett representing the Board Budget and Finance Committee. Member Boneysteele was unable to attend. Ms. Ratcliff reviewed the bond financing schedule which calls for Board review at this meeting, adoption of the required resolutions at the May 9, 2002 meeting, marketing the Preliminary Official Statement May 14, 2002, and sale of bonds on May 29, 2002. Ms. Ratcliff introduced Mr. Chick Adams, Bond Counsel with Jones Hall, and Mr. Tom Lockhard, Financial Advisor with Stone & Youngberg. Messrs. Adams and Lockhard advised the District in its two most recent financings. Mr. Tom Lockhard, of Stone & Youngberg, stated that he appeared before the Board in 1994 and 1998 and he has been acting as the District's Financial Advisor on matters of debt financing and public financing. Some prior work has been done on the part of staff and the Board as to the need for debt financing at this time, to come up with various approaches. Historically this Board has been very conservative as to issuing debt, minimizing the amount of interest paid. The Board must now consider balancing interest cost versus annual debt service. The objective is to raise $15 million for the District's Capital Improvement Program. The actual size of the bond issue will be closer to $16 million in order to pay for the cost of the financing and the reserve fund. Mr. Lockhard reviewed various approaches, stating that the lowest interest cost would be for a 10-year term with level annual debt service, the lowest annual debt service would be a 30-year term, the most predictable would be a 20-year deferred interest, and the most balanced would be a 20-year term. Mr. Lockhard stated that the recommended approach is a balanced 20-year term with level annual debt service. Mr. Lockhard reviewed a chart showing the 1998 debt service combined with the proposed 2002 debt service. The debt service with the recommended approach would be approximately $3.5 million per year until 2014. After 2014 debt service would drop to approximately $1.4 million per year. Mr. Lockhard reviewed a summary of calculations showing debt service including the 1998 debt service and interest for the various approaches. Total interest costs for the recommended approach over the 20-year period would be approximately $9.9 million. Mr. Lockhard stated that in preparation for the May 9, 2002 Board Meeting, the Board will receive the financing package including the Official Statement. The competitive sale ("sealed bid") would be done on May 29, 2002, and proceeds would be available in early June 2002. Following discussion, the Board thanked Mr. Lockhard for his presentation. Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who provided an update on the San Ramon projects. The San Ramon Pumping Station Renovations Project was discussed earlier in the agenda. Mr. Brennan stated that he, Member Hockett, and Director of Engineering Ann Farrell attended the April 9, 2002 San Ramon City Council. The City Council voted 4/0, with Councilmember Tatarka being absent, to approve the encroachment permit and temporary construction easement for the San Ramon Forcemain Project. The tunnel should be completed by next Monday or Tuesday and the tunneling subcontractor, Walter C. Smith Company, is planning a "hole out" catered dinner at 4:00 p.m. on April 23, 2002 immediately following the Board Capital Improvement Budget Workshop. Board Members are invited to attend. Following completion of the tunnel, the tunneling subcontractor must remove its equipment. Mountain Cascade will then go into the tunnel to finish the tunnel and install the pipe. All approvals have been received for the landscaping at the west portal. Staff is negotiating the cost of the landscaping as a change order. The final paving of Mangos and Estero is complete. 18 02 4) 137 Member Boneysteele requested that a video of the "holing out" be made if possible. Mr. Brennan stated that he will try to arrange that. President Menesini thanked Mr. Brennan for the update. 3) Mr. Batts, General Manager, stated that one of the mid-budget changes which will be discussed when the Board reviews the Capital Improvement Budget Addendum on April 23, 2002, is the inclusion of the Treatment Plant Aeration Steam Turbine Project. Mr. Batts introduced Mr. Jim Belcher, Senior Engineer, who stated that the aeration system is the heart of the secondary process. The aeration steam turbines run nonstop all year long. The equipment was installed in 1975 as part of the original 5A plant expansion. The units run alternately so each has been used for about 13.5 years. The units have been operating reliably until recently; but there were some known problems. The existing controls are obsolete and failing; the lube oil system is leaking and rusting; the turbine governors are worn; and partial load efficiency should be improved to reduce steam usage. Recent events have caused staff to evaluate the continued reliability of these units. Problems with erosion, cracking, and thinning of steam nozzles and diaphragms have recently been found. Mr. Belcher showed photographs of the equipment and described the problems. In early January 2002, Ingersoll Dresser came in to inspect the aeration steam turbines and develop a scope of work for a refurbishment project. It was fortuitous that they did because it was found that No.2 turbine has a damaged turbine wheel. The wheel was replaced with a spare unit. The diaphragms were also inspected and found to have problems. In April 2002, the No.1 turbine thrust bearing failed. The bearing was replaced and the internals of the turbine were inspected and additional problems were found. Mr. Belcher stated that the repair and inspection costs for the two turbines total $80,000. Based on the inspection the project elements have now been expanded to include replacing diaphragms; replacing steam nozzles; reconditioning rotor No.1 turbine; replacing and upgrading cabinet controls; installing a new electronic governor; replacing lube oil skid; installing automatic hand valves for increased part load efficiency; relocating adjacent ancillary piping for safer working area; inspecting, cleaning, and realigning roots blower; and replacing inlet guide vane controller on roots blower. The project costs are estimated at $1,975,000 :t 30 percent. It is proposed that in the May/June time frame the Board will be asked to consider approval of sole source prepurchase of long lead time items such as the diaphragms and steam nozzles and prepurchase of the lube oil skid. In July/August 2002 the District will be advertise for bids for the project and construction will begin in Fall 2002. Mr. Belcher stated that with these modifications, these units should have a 20-year life. Discussion followed with regard to the costs for new units as opposed to refurbishing the existing units, and the fact that Plant Operations has deferred the Solids Conditioning Building Ventilation Project estimated at $1.5 million in order to move forward with this project. President Menesini stated that the treatment plant is getting older and the District must look realistically at whether to rehabilitate or replace the equipment. Mr. Batts agrees, stating that the District is fortunate to have staff members like Mr. Belcher working on these complex systems. Mr. Batts, General Manager, stated that all Board Member should have received a copy of the Capital Improvement Budget (CIB) Addendum for Fiscal Years 2001-2002 and 2002-2003. This second year addendum includes projects that have been added or have changed significantly since the original CIB was approved by the Board approximately a year ago. This year is the midpoint of the two year CIB cycle and the addendum is meant to make minor changes to the previous document. Any significant changes in Capital Improvement Plan (CIP) direction are intended to be addressed next year when the next two-year CIB/CIP document is drafted. A 04 18 02 138 5) 6) b. 04 workshop to obtain input from the Board will be held on April 23, 2002 at 2:00 p.m. in the Second Floor Conference Room. All Board Members are invited to attend. Mr. Batts, General Manager, stated that the District will have a booth at the April 18, 2002 Concord Chamber of Commerce Trade Show. The Trade Show will be held from 5:00 p.m. to 8:00 p.m. at the Sheraton Hotel in Concord. The theme of the District booth will be Integrated Pest Management (lPM) gardening and the Household Hazardous Waste Collection Facility. The Trade Show is free to the public. Mr. Batts, General Manager, announced that on Saturday, April 20, 2002, the District will have a booth focused for children at the Mini Earth Day that will be celebrated at the waterfront in Martinez from 10:00 a.m. to 2:00 p.m. 7) Mr. Batts, General Manager, announced that no acceptable lease proposals were received by the March 28, 2002 deadline, in response to the advertisement for bids in relation to lease of District property for telecommunication equipment and antenna installation. However, on April 2, 2002, Sprint PCS sent a proposal which was lower than their original negotiated offer. Staff rejected the Spring PCS counter offer, and decided to wait until the new 3G technology, the next generation of wireless, creates a more viable opportunity for lease of the District's property. 8) Mr. Batts, General Manager, announced that the District was successful in the informal Public Utilities Commission (PUC) complaint process. The District will receive corrected invoices reflecting two rebates of $7,500 each for standby charges relating to the February 24, 2002 PG&E power outage. The Board commended Mr. Jim Belcher, Senior Engineer, for his efforts. 9) Mr. Batts, General Manager, announced that the District will be advertising for bids for the Rossmoor Sewer Improvements Project, Phase 7. District staff has reviewed the scope of work with the Rossmoor Sewer Board and the District Collection System Operations Division staff. The estimated construction cost is $358,000. 10) Mr. Batts, General Manager, stated that there will be a public hearing at the May 9, 2002 Board Meeting to consider proposed modifications to District Code Title 4, Personnel. The proposed update will include revisions to the District Code to make it consistent with Federal and State laws, as well as the Memoranda of Understanding with the District's bargaining units. 11 ) Mr. Batts, General Manager, announced that the Governor has declared the week of April 14-20, 2002 as "Wastewater Worker Recognition Week," which fits nicely with the District's employee recognition event scheduled for next Wednesday, April 24, 2002. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, provided an update on Senate Bill 1518 (Torlakson) regarding purveyorship of recycled water. The bill has two provisions. One amends the Sanitary District Act to remove requirements for consent from water districts for sanitary districts to purvey recycled water. The second adds provisions for urban water plans requiring indication of how recycled water will be used in the particular jurisdiction. The bill was scheduled for its first hearing in the Legislature on April 16, 2002. Mr. Aim stated that he attended and spoke on behalf of sanitary districts. The bill unanimously passed out of the Agriculture and Water Resources Committee. Ms. Bobbi Larson was also present and expressed 18 02 139 the support of the California Association of Sanitation Agencies (CASA) for the bill. 2) Mr. Aim, Counsel for the District, reported that the mandatory minimum penalty bill, with revisions sponsored by CASA, also passed out of committee with some modifications on April 16, 2002. That bill will provide some relief to agencies that may be having startup problems or problems from an upset that would keep it from meeting permit limits for a long period of time. The problem would be treated as one instance rather than a separate instance each day. 3) Mr. Aim, Counsel for the District, stated that in accordance with the provisions of the Brown Act, it is appropriate to announce completed actions previously discussed in closed session. Based on the authority provided by the Board in closed session on March 7, 2002, settlement has been reached with regard to the property damage claim of Ms. Donna Albertson for the overflow at 1098 Via Roble in Lafayette which occurred on August 29, 2001. The total amount of the final settlement was $31,000. 4) Mr. Aim, Counsel for the District, reported on two cases of some significance that just came down this week. The first deals with the procedures for Proposition 218, Right to Vote on Taxes. In the past the District has mailed notices to its citizens on rate increases. The case that came down this week tends to suggest that the appellate court would agree that those in our business would have to use mailed notices and Proposition 218 would apply. Mr. Aim stated that the second case that came down was a matter brought by Baykeeper against the U.S. Environmental Protection Agency (EPA) for not setting up the Total Maximum Daily Loads (TMDL's) process in a timely manner. The Ninth Circuit Court sustained a summary judgment motion in favor of the U.S. EPA. This was a case that the California Association of Sanitation Agencies (CASA) had joined in support of the U.S. EPA's position. The Court stated that what the U.S. EPA is doing on establishing TMDS's is acceptable and is being done at an acceptable pace. c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1 ) 2) Mr. Batts, General Manager, reported on the April 15, 2002 Contra Costa Special Districts Association (CCSDA) meeting at which topics of discussion included the cancellation of the election for special district representative to the Local Agency Formation Commission (LAFCO) since only two individuals, Dwight Meadows of Contra Costa Resource Conservation District and George Schmidt of West County Wastewater District, ran for the two seats; State reimbursement for compliance with the Brown Act; participation in Shaping Our Future, a comprehensive study to look at future growth and quality of life issues in Contra Costa County; and distribution of CCSDA informational booklets. Member Boneysteele announced that he may be unable to attend the April 23, 2002 Board Workshop as he has been called for jury duty. BREAK President Menesini declared a recess at the hour of 4: 12 p.m., reconvening at the hour of 4:27 p.m., with all parties present as previously designated. 04 02 18 140 8. HUMAN RESOURCES a. RECEIVE AND CONSIDER STAFFING PLAN FISCAL YEAR 2002-2003 Ms. Cathryn Freitas, Human Resources Manager, stated that this position paper and Staffing Plan Fiscal Year 2002-2003 reflect the personnel changes made by the Board during the current fiscal year. The position paper also includes requests for deleting one Landscape Specialist position and adding one Maintenance Technician III, Mechanical position in the Operations Department and underfilling two existing Assistant Engineer positions in the Engineering Department with Staff Engineers. The Board will be holding a workshop to consider the Collection System Operations Division workload and staffing. The Staffing Plan presented for the Board's approval at the May 9, 2002 Board Meeting will include changes, if any, made by the Board at that workshop. Ms. Freitas stated that the District's workforce began changing significantly about three years ago in 1999. The plant expansion was completed in 1979 and 20 years later, the District is faced with a number of retirements. In 1992 there were 271.5 employees and in 2002 there are 232.25 employees. In the last three years since 1999, the turnover rate has increased 2.5 times from what it was in the early 1990's. The District is losing a lot of institutional knowledge, but we are hiring a lot of well-skilled, older people. Ms. Freitas reviewed employee statistics, noting that 28.6 percent of District employees are 50-59 years of age and 77 percent of District employees will likely change in the next 10 years. Eighty-eight District employees, 36 percent, have 16 or more years of service. Ms. Freitas stated that with the reduction in staffing levels over the years, staff has attempted to replace vacancies with skilled employees, about half of District positions by promotions and about half from workers outside. Ms. Freitas stated that the District will have to face how to integrate new people into the District culture, ensure training and safety of new employees, and attract and maintain a skilled workforce in the future. Member Lucey stated that this is a win/win situation. Retired employees are happy and new employees are integrated into the workforce. However, there has not been the large increase in women and minority hiring that he would have hoped. Ms. Freitas distributed copies of the Employee Handbook which was recently produced to try to help employees integrate into the District culture. b. AUTHORIZATION TO HIRE SEASONAL EMPLOYEES It was moved by Member Hockett and seconded by Member Lucey, that the hiring of 24 students for seasonal employment be authorized. There being no objection, the motion was unanimously approved. 9. APPROVAL OF MINUTES a. MINUTES OF MARCH 21. 2002 It was moved by President Menesini and seconded by Member Hockett, that the minutes of March 21, 2002 be approved as presented. There being no objection, the motion was unanimously approved. 10. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED APRIL 18. 2002 It was moved by Member Hockett and seconded by President Menesini, that the Expenditure List dated April 18, 2002, including Self Insurance Check Nos. 101864- 101866, Running Expense Check Nos. 137678-138055, Sewer Construction Check Nos. 24402-24444, Payroll Manual Check Nos. 48828-48835, and Payroll Regular Check Nos. 54048-54071, be approved as recommended. There being no objection, the motion was unanimously approved. 04 18 0.;.. ì" G"'¡,j.i' j ~! /" fo4Id 141 11. BUDGET AND FINANCE a. ESTABLISH A SPECIFIC PERCENTAGE AND/OR DOLLAR LIMIT FOR REVISION TO AGREEMENTS FUNDED AND RECEIVE AN INFORMATIONAL COpy OF P-015. REVISION 1. FOR INCLUSION IN THE PURCHASING AND MATERIALS MANUAL AND TABLE A-5 FROM THE 2002-2003 CAPITAL IMPROVEMENT BUDGET ADDENDUM Mr. Batts, General Manager, stated that at the last Board Meeting, Director of Administration Randy Musgraves made a presentation on the current management and staff authorization limits and discussed the recommendations presented for the Board's consideration. One of the recommendations favored by the Board was to establish a percentage (15 percent) and/or dollar limit ($10,000) for revisions to contracts requiring Board approval, including Board approved contracts or revisions that increase contracts to that level. It was moved by Member Hockett and seconded by Member Nejedly, that the requirement be adopted to obtain Board approval for agreements when a revision to the agreement is above 15 percent or $10,000 of the authority limit amount required by Board approval, whichever limit is greater; and that Procedure No. P-015, Revision 1, for inclusion in the Purchasing and Materials Manual and Table A-5 from the 2002-2003 Capital Improvement Budget Addendum be received. There being no objection, the motion was unanimously approved. b. APPROVE THE 2002-2003 EQUIPMENT BUDGET FOR INCLUSION IN THE 2002- 2003 DISTRICT BUDGET Mr. Batts, General Manager, stated that the 2002-2003 Equipment Budget was submitted for review at a Board Capital Projects Committee Meeting/Board Workshop on April 9, 2002. In total the package was acceptable to the Board Members present. One item, Motorola radios, will be bought in the current fiscal year. Member Nejedly made staff aware of a current promotion price and funds are available in this year's budget. No other changes were made to the proposed Equipment Budget. It was moved by Member Nejedly and seconded by Member Lucey, that the 2002-2003 Equipment Budget be approved for inclusion in the 2002-2003 District Budget to be adopted at the June 20, 2002 Board Meeting. There being no objection, the motion was unanimously approved. 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None Member Hockett requested to be excused and left the meeting at the hour of 4:43 p.m. 14. CLOSED SESSION a. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. Two potential matters are to be discussed. At 4:43 p.m., President Menesini declared the closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b) as noted above. 04 18 02 142 At 5:09 p.m., President Menesini concluded the closed session and reconvened the meeting into open session. 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 Menesini adjourned the meeting at the hour of 5: 1 0 p.m., to reconvene at 2:00 p.m. on May 9, 2002, for an Adjourned Regular Board Meeting. ;Q;--- t:. ~J¿' Pr cent of the Board Directd'rs, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se re ar of the Central Cont Costa San ry District, County of Contra Costa, State of California 04 18 02