HomeMy WebLinkAboutBOARD MINUTES 05-09-02
157
MINUTES OF THE ADJOURNED REGULAR BOARD MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON MAY 9,2002
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 9, 2002.
President Menesini called the meeting to order and requested that the Secretary call roll.
1. ROLL CALL
PRESENT:
Members:
Nejedly, Hockett, Lucey, Boneysteele, Menesini
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.
PRESENTATION OF SAFETY SUGGESTION OF THE YEAR AWARDS FOR 2001 TO:
.
KEITH BRAUCH. ELECTRICAL TECHNICIAN
PLANT OPERATIONS DIVISION. OPERATIONS DEPARTMENT
.
DON BOTELLI. MAINTENANCE TECHNICIAN I AND
PJ TURNHAM. MAINTENANCE TECHNICIAN TRAINEE
PLANT OPERATIONS DIVISION. OPERATIONS DEPARTMENT
Mr. Charles W. Batts, General Manager, stated that each year the District presents an
annual Safety Suggestion Award. Mr. Randall M. Musgraves, Director of Administration,
introduced Ms. Kim Greer, Safety and Risk Management Specialist, who has taken on
new responsibilities and duties with the departure of Mr. David Clovis. Ms. Greer stated
that the purpose of the District's Safety Program is to be our eyes and ears to makes us
safer. In 2001, there were 18 award winners from the total 141 safety suggestions
submitted. The District Safety Committee then selects the top suggestion from those
award winners for receipt of the Safety Suggestion of the Year Award. This year there
are three recipients. Ms. Greer stated that normally the Chair of the District Safety
Committee presents the Annual Safety Suggestion Award. However, that does not seem
appropriate this year since Mr. Keith Brauch, the Chair of the District Safety Committee,
is one of the award recipients. Mr. Brauch, Electrical Technician in the Plant Operations
Division, suggested that a fence be erected around the Wagner School Pumping Station
to ensure that the electrical and other equipment is maintained inside the fenced area and
not accessible to children. Ms. PJ Turnham, Maintenance Technician Trainee, and Mr.
Don Botelli, Maintenance Technician I, co-authored the suggestion that a catwalk
extending along the side of the soot ash conveyor drives be built so that Technicians can
safely access, remove, and service the heavy equipment.
President Menesini presented the Safety Suggestion of the Year Award for 2001 to Mr.
Keith Brauch, Electrical Technician, and to Ms. PJ Turnham, Maintenance Technician
Trainee, and Mr. Don Botelli, Maintenance Technician I, and commended Ms. Turnham
and Messrs. Botelli and Brauch on their attention to safety.
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4. CONSENT CALENDAR
It was moved by Member Hockett and seconded by Member Nejedly, that the Consent
Calendar, consisting of Items a. through c., be approved as recommended, resolutions
adopted as appropriate, and recordings duly authorized.
The President of the Board of Directors and the Secretary of the District
were authorized to execute Quitclaim Deeds for seven easements in the
Orinda area, District Job 3242, Parcel Nos. 2, 3, 4, 5, 6, 7, and 8, to
Dierkes Family Revocable Trust, Marjorie M. Cook, Martin V. and Loretta C.
Jacobs, Edmund J. and Patricia A. Coyne, and Michael M. and Ziba F.
Rasooly; staff was authorized to record said Quitclaim Deeds with the
Contra Costa County Recorder; and Resolution Nos. 2002-022. 2002-023.
2002-024. 2002-025. 2002-026. 2002-027. and 2002-028 were adopted
to that effect.
a.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
b.
Hockett, Nejedly, Lucey, Boneysteele, Menesini
None
None
The public sewer improvements and an Offer of Dedication as shown on the
recorded final map of Subdivision 7941, Job 5197, Parcel 1, Walnut Creek
area, were accepted at no cost to the District; staff was authorized to
record said easement acceptance; and Resolution No. 2002-029 was
adopted to that effect.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
c.
Hockett, Nejedly, Lucey, Boneysteele, Menesini
None
None
May 23, 2002 at 2:00 p.m. was established as the date and time for a
public hearing to receive comments on the Draft Fiscal Years 2001-2002
and 2002-2003 Capital Improvement Budget/2001 Ten Year Capital
Improvement Plan Addendum.
Motion unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Hockett, Nejedly, Lucey, Boneysteele, Menesini
None
None
5. HEARINGS
a.
CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON ORDINANCE
MODIFYING DISTRICT CODE. TITLE 4. PERSONNEL
Mr. Batts, General Manager, stated that the District Code establishes the rules and
procedures of the District. Title 4, Personnel, has not been updated for a number of
years. Mr. Batts introduced Ms. Allison Woodall, the District's Labor Counsel, who
discussed the reasons for the changes, the meet and confer process, and the actual
changes that are proposed to Title 4 as a result of this process. Ms. Woodall stated that
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all the proposed changes were provided to the Board and it was not intended that they
would be reviewed in detail unless the Board has questions. Ms. Woodall stated that this
has been in the works for some time and first came up about 1999 when staff began
looking at updating the District Code to reflect changes in the law and in the Memoranda
of Understanding (MOU's) with the bargaining units. The District was going into
negotiations at that time so this was put off until those negotiations were concluded.
Following negotiations staff began working with District Labor Counsel to update Title 4
to reflect changes in such things as a policy against violence in the workplace, employee-
employer relations, position titles, and the MOU's with the employee organizations.
Ms. Woodall stated that the process of meeting began in late 2001 with all three of the
bargaining groups. The Management Support/Confidential Group (MS/CG) and Local 1
had their attorneys participate in these meetings, and Local 1 also had its business agent
participate. Ms. Woodall stated that five meetings were held with Local 1 in late 2001
and 2002. The meetings were very productive. There were many suggestions and ideas
and accommodations made in many areas. Ms. Woodall stated that most of the items
before the Board were agreeable to each of the employee organizations. Once meet and
confer had been concluded, the proposed modifications were finalized and copies were
sent to each of the employee organizations. Letters agreeing to the proposed changes
were received from the Management Group and MS/CG, and a letter was received from
Local 1 offering only several minor changes. Ms. Woodall stated that she understands
that Mr. David Rolley, President of Local 1 and the Central Contra Costa Sanitary District
(CCCSD) Employees Association, will be here to address the Board today with additional
comments. In closing, Ms. Woodall stated that it was a very productive process. The
document before the Board reflects the current legal requirements and practices of the
District today. Ms. Woodall stated that she would be happy to answer any questions.
Member Lucey asked if Mr. Rolley was the Local 1 representative in the meet and confer
process and was advised that he was.
At 2: 13 p.m., President Menesini opened the public hearing to receive comments on the
proposed modifications to District Code, Title 4, Personnel.
Mr. David Rolley, President of Local 1 and the CCCSD Employees Association, addressed
the Board, stating that the Employees Association did meet with the District on these
issues and did come to substantial agreement on most of them. However, there are six
items in Title 4 where the Employees Association still has concern. Mr. Rolley stated that
the meetings seemed to end rather abruptly. He thought they were going through a first
pass of the document to get understanding on changes. Mr. Rolley stated that when
agreement was not reached, the meeting just moved on and he thought these items
would come back to further review. Mr. Rolley relayed his concerns and requested that
the Board not approve the proposed ordinance as it relates to the following six items:
1.
2.
3.
4.
5.
6.
4.16.100
4.24.030
4.24.090(A.)(3.)
4.24.110(B.)
4.24.110(D)
4.24.110(F.)
Provisional Appointments
Representation Unit
Employees Meeting on District Time
District Rights
Annual Union Meetings
Union Business Agent Access to Premises
Mr. Rolley asked that the Board instruct management to go back and meet with the
Employees Association to work out language that the Employees Association is more
comfortable with.
There being no further comments, President Menesini closed the public hearing at the
hour of 2:35 p.m.
Board discussion followed concerning the number of meetings held, the process followed,
the length of time spent on this matter to date, the fact that Mr. Rolley did not provide
his concerns to the Board prior to the meeting, and questions relating to the nature of the
concerns raised.
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Following discussion, it was moved by Member Hockett that the ordinance adopting the
proposed modifications to Title Four, Personnel, be adopted. Motion died for lack of a
second.
Following further discussion, it was moved by Member Lucey and seconded by Member
Boneysteele, that the proposed modifications to District Code Title Four, Personnel, be
approved as recommended with the six exceptions listed above; and that staff be directed
to bring back definitions of those six issues for final decision at the next Board Meeting.
Following further discussion, the motion was approved on the following vote:
AYES: Members: Lucey, Boneysteele, Nejedly, Menesini
NOES: Members: Hockett
ABSENT: Members: None
b.
CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AN ORDINANCE TO
AMEND DISTRICT CODE CHAPTER 6.38. RECYCLED WATER CHARGES
Mr. Batts, General Manager, introduced Mr. Don Berger, Associate Engineer, who stated
that on April 4, 2002 a presentation was made to the Board on the existing recycled
water rate structure and the draft ordinance with the proposed changes to the recycled
water rates. There have been no recycled water rate changes since the original ordinance
was adopted in 1998. A rate increase is needed now to help recover expenses. In
addition, greater consideration should be given to the financial viability of each new
customer connection of the Recycled Water Project. Mr. Berger stated that the proposed
new ordinance sets all recycled water rates at 80 percent of comparable Contra Costa
Water District (CCWD) rates. It simplifies the recycled water rate structure from eight
levels to two levels: $750 per acre foot for previous potable water customers and $355
per acre foot for previous canal/well water customers. Some customers will see up to a
four-year catch up period before paying the full, new rate. The proposed ordinance also
includes an annual 3 percent increase in recycled water rates to cover increasing District
costs and inflation, and it clarifies the application of a cost/benefit analysis and
connection fees in the new customer connection process. Staff will revisit the recycled
water rates every year to be sure they are appropriate.
Mr. Berger stated that notice of the public hearing was published in the Contra Costa
Times. Mr. Berger stated that he personally contacted existing customers individually
regarding the proposed recycled water rate changes and follow up letters were sent to
confirm those discussions. Mr. Berger stated that everyone was accepting of the changes
although no one wants to see the rates go up. In response to questions from District
Counsel Kenton L. Aim, Mr. Berger stated that he did contact the school districts that are
District recycled water customers and advised them of the proposed recycled water rate
increase, including the capital portion, and they voiced no opposition to the proposed
increase.
At 3:00 p.m., President Menesini opened the public hearing to receive comments on the
proposed ordinance to amend recycled water charges. There being no comments, the
public hearing was closed.
It was moved by Member Lucey and seconded by Member Hockett, that Ordinance No.
221 be adopted, amending District Code Chapter 6.38, Recycled Water Charges. Motion
unanimously approved on the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Lucey, Hockett, Nejedly, Boneysteele, Menesini
None
None
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6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
Mr. Batts, General Manager, requested that Items 13.d and e., Budget and Finance, and
Item 9.a., Engineering, be taken out of order to accommodate interested persons in the
audience.
13. BUDGET AND FINANCE
d.
ADOPT RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF REVENUE
INSTALLMENT CERTIFICATES. AND AUTHORIZING THE DELIVERY OF AND
APPROVING THE PRELIMINARY OFFICIAL STATEMENT FOR 2002 REVENUE
INSTALLMENT CERTIFICATES
Mr. Batts, General Manager, distributed and reviewed a revised resolution in which
Section 2., Pledge of Property Tax Revenues, and Section 6., Consent to Bidding by
Financial Advisor, had been added.
Member Boneysteele stated that in the future all revisions should be indicated and dated
on the face of the document.
Ms. Deborah Ratcliff, Controller, stated that the proposed resolution has been reviewed
in detail by the District's Bond Counsel. Ms. Ratcliff stated further that at the Board
Financial Planning Workshop held in January 2002, staff discussed the need for bond
financing because of the escalation of the San Ramon projects, the need to infuse funds
into the Sewer Construction (Capital) Fund, and the need to maintain a prudent fund
balance for cash-flow management. In analyzing these needs, it became apparent that
the District needed not only a Sewer Service Charge rate increase but required bond
financing. It is recommended that Revenue Installment Certificates be issued and sold
in an amount not-to-exceed $17 million.
The District's Financial Advisor Mr. Thomas Lockard, of Stone and Youngberg, addressed
the Board. Mr. Lockard stated that an overview of the bond financing was provided at
the last Board Meeting. It has been determined that the District has a net financing need
of $15 million. It is expected that approximately $16.7 million in Revenue Installment
Certificates will be sold to net $15 million. The sale is tentatively scheduled for May 22,
2002 at 9:30 a.m. and will be conducted on the Internet. Mr. Lockard stated that it is
expected that the cost of funds on this 20-year borrowing will be well under 5 percent,
probably about 4.8 percent. Delivery is expected June 6, 2002.
The District's Bond Counsel Mr. David Oster, of Jones Hall, stated that he is representing
Mr. Charles Adams who has done most of the District's work in the past. Mr. Adams
was unable to attend this meeting. Mr. Oster stated that there are several different ways
of issuing securities to provide the needed funds. Certificates of Participation (COP) were
chosen rather than '33 Act Sewer Revenue Bonds or '41 Act Revenue Bonds because
they are the most effective for the District both in terms of time and revenue. A portion
of the COP revenue stream created is set aside and pledged to the buyers of the
certificates. The COP is a debt of the District secured by a Net Revenue Pledge and a
Rate Covenant, $1.25 in net revenue for every $1.00 of debt service. The Central Contra
Costa Sanitary District Facilities Financing Authority assumes all of the rights and the
Authority is necessary to create this transaction. In addition, the District will pledge its
property tax revenue. The proposed District Board resolution:
.
Adopts the Trust Indenture;
.
Adopts the Installment Sale Agreement which pledges property tax revenue;
.
Authorizes the award of the Bonds to the low cost bidder;
.
Authorizes, but does not require, Stone and Youngberg to bid at the sale;
.
Approves the Preliminary Official Statement, a key document; and
.
Commits to annual continuing disclosure for the bond market.
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Mr. Lockard noted that two changes will be made in the Official Statement. First, an
explicit pledge of the District's property tax revenue will be made in the Trust Indenture
and Official Statement. The other important point is that some numbers changed in the
available net revenue in the debt service. The numbers did not change in a significant
way, but they did change. In addition, some typographical errors were found and
corrected.
Mr. Oster stated that Section 2., Pledge of Property Tax Revenues, was added to the
proposed resolution for the Board's consideration. It is not an absolute guarantee that
this will protect the District's property tax revenue but the goal is to make this as
effective as possible as a first pledge of the District's property tax revenue in the event
there is some legislative change in the future. Mr. Oster stated further that now
continuing disclosure is required and must be approved.
With regard to Section 6., Consent to Bidding by Financial Advisor, Mr. Oster stated that
the California Government Code would preclude Stone and Youngberg from bidding on
these certificates because they are the District's Financial Advisor unless the Board
specifically takes action to allow it. The California Government Code is not a flat
prohibition. Stone and Youngberg is a leading underwriter in this area. The conflict of
interest issue has been recognized from the beginning and it has been discussed. There
is no advantage to Stone and Youngberg to bidding on the certificates but it would allow
the District to access a larger market. The real test will be the number of bids received,
but this is a matter for the Board to decide.
Mr. Tom Lockard again addressed the Board. Mr. Lockard reviewed the market conditions
and the District's existing ratings, which are some of the highest in the State. Mr.
Lockard stated that he expects to have those ratings maintained and to have a
commitment by early next week. There is also a commitment for insurance. It is
expected that the underwriter will buy insurance because the cost is so low. Four to six
bidders are expected. Mr. Lockard reviewed the existing 1998 debt service combined
with the proposed 2002 debt service. At its highest that number will be about $3.5
million. In closing, Mr. Lockard reviewed the bond pricing and interest rates in the market
today and indicated that the blended rate is expected to be 4.8 percent for the overall
cost of funds.
Discussion followed with regard to the pledge of District property tax revenue, and the
role of the CCCSD Facilities Financing Authority.
It was moved by Member Hockett and seconded by Member Lucey, that Resolution No.
2001-030 be adopted, authorizing staff to execute documents and authorizing the
delivery of and approving the Preliminary Official Statement for 2002 Revenue Installment
Certificates in an amount not-to-exceed $17 million. Motion approved on the following
vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Hockett, Lucey, Nejedly, Boneysteele, Menesini
None
None
e.
ADJOURN REGULAR BOARD MEETING AND CONVENE AS THE BOARD OF
DIRECTORS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES
FINANCING AUTHORITY
At 3:40 p.m., President Menesini adjourned the District Board Meeting and Member
Boneysteele, President of the Central Contra Costa Sanitary District (CCCSD) Facilities
Financing Authority, convened the special meeting of the CCCSD Facilities Financing
Authority.
President Boneysteele requested that the Secretary call roll.
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PRESENT:
Directors:
Nejedly, Hockett, Lucey, Menesini, Boneysteele
ABSENT:
Directors:
None
President Boneysteele requested public comments, and noted that there were none.
1 )
APPROVE CCCSD FACILITIES FINANCING AUTHORITY MINUTES OF
FEBRUARY 7. 2002
It was moved by Director Menesini and seconded by Director Nejedly, that the minutes
of the CCCSD Facilities Financing Authority annual meeting of February 7, 2002, be
approved as presented. There being no objection, the motion was unanimously approved.
2)
ADOPT RESOLUTION OF THE CCCSD FACILITIES FINANCING AUTHORITY
APPROVING THE ISSUANCE AND SALE OF 2002 REVENUE INSTALLMENT
CERTIFICA TES
It was moved by Director Menesini and seconded by Directory Lucey, that Resolution No.
2002-01 be adopted, approving the installment sale of wastewater facilities
improvements to the Central Contra Costa Sanitary District, authorizing execution of the
related Installment Sale Agreement, Trust Agreement, and approving delivery and sale
of not-to-exceed $17 million of 2002 Revenue Installment Certificates. Motion
unanimously approved on the following vote:
AYES: Directors:
NOES: Directors:
ABSENT: Directors:
Menesini, lucey, Nejedly, Hockett, Boneysteele
None
None
3)
ADJOURN CCCSD FACILITIES FINANCING AUTHORITY MEETING AND
RECONVENE AS THE BOARD OF DIRECTORS OF THE CENTRAL CONTRA
COSTA SANITARY DISTRICT
There being no further business to come before the CCCSD Facilities Financing Authority,
President Boneysteele adjourned the special meeting of the CCCSD Facilities Financing
Authority at the hour of 3:43 p.m., and turned the meeting back to President Menesini,
who reconvened the District Board Meeting.
At this time, President Menesini proceeded to Item 9.a., Engineering.
9. ENGINEERING
a.
AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH
SHAPELL INDUSTRIES OF NORTHERN CALIFORNIA FOR ACQUISITION OF
EASEMENTS FOR THE WENDT RANCH OFFSITE SEWER PROJECT. JOB 5436
Mr. Batts, General Manager, stated that planning for sewer service to the Wendt Ranch
property east of Lawrence Road on Camino Tassajara near Blackhawk has been underway
since the late 1980's. The preferred alternative for providing this service is for the
developer, Shapell Industries, to construct a gravity main sewer in easements across
private property to the District's trunk sewer in Lawrence Road in Danville. This item was
discussed in a presentation to the Board at the March 21, 2002 Board Meeting. Shapell
has obtained commitments for most of the needed easements, except for the most
downstream portion of the route nearest Lawrence Road. Shapell has requested that the
District assist in obtaining the remaining easements and has agreed to reimburse the
District for its costs. A similar approach was used to obtain an easement for the Gale
Ranch Phase 1 development through the Canyon lakes Country Club.
Mr. Kenton L. Aim, Counsel for the District, stated that the reason to bring this to the
Board now is that the District will be incurring costs and wanted it clear that those costs
would be reimbursed by Shapell. This is not in any way an agreement to pursue a
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condemnation process. No decision has been made on that and such a decision would
have to come back to the Board.
Dr. Howard Siu addressed the Board, indicating that he is the individual who has not
provided the easement to Shapell. Dr. Siu stated that he did not receive a notice of this
meeting today, and requested that in the future he receive notice. Dr. Siu thanked Ms.
Freihofner and Mr. Batts for inviting him to address the Board. Dr. Siu distributed
photographs and a written statement entitled CCCSD and Simpson Pond FAQ Sheet, and
reviewed the points outlined in the written statement. Dr. Siu encouraged the Board to
delay its decision on the agreement with Shapell Industries for acquisition of easements
for the Wendt Ranch Offsite Sewer Project until the lawsuits on this development have
been concluded. Dr. Siu stated further that he is developing a tentative map of his
property to pursue a planned unit development to try to protect Simpson Pond. Dr. Siu
stated that he met with the Town of Danville yesterday and he will be trying to form a
development on his property to share this pond with the community and other
homeowners.
Discussion followed with regard to a watershed study for the area, the proposed project
alignment and preferred alternative, and Dr. Siu's previous statement to staff that he
preferred a sewer route behind his house.
Dr. Siu stated that now he would like the District to delay its route decision so the sewer
route and the planned unit development would be compatible with each other.
Member Nejedly stated that the District does not approve these projects. It is the
District's obligation to provide sewer service, and to try to find the best route for the pipe.
The Wendt Ranch project has been approved by the appropriate land use planning agency.
The District now must provide sewer service.
In response to questions from Member Nejedly, Dr. Siu stated that he is not opposed to
the Wendt Ranch Project sewer line as long as it does not impact his project. Dr. Siu
stated further that he wants to ensure that the fish, ground water quality, and creek
water quality would be maintained.
Member Lucey stated that the District's purpose is to provide for the health and safety
of the community by providing sanitary sewers. The District did not approve the Wendt
Ranch project, the Gale Ranch project, or Dr. Siu's proposed development around
Simpson Pond.
Dr. Siu asked that the District wait three months before proceeding, stating that it is
important for the District not to give its tacit approval for something that might be illegal,
based on on-going lawsuits.
Member Boneysteele stated that the District provides sewer service to the people who will
be living in the Siu development. The District does not make land use decisions. The
County or the Town of Danville will decide where the houses will be built. Member
Boneysteele stated that thinks that if Dr. Siu can come up with a plan to provide cost
effective sewer service that is reasonable to him, the Board would be very interested, but
the Board cannot veto the whole development. Member Boneysteele asked Dr. Siu if he
had an alternative that he would propose that would be satisfactory to him and that
would be practical.
Dr. Siu stated that he would ask the District and the Board to obtain a biological opinion
to help answer that question. Dr. Siu stated that his concern is that the Wendt Ranch
Offsite Sewer Project is a violation of federal law and the concern of many environmental
groups that this project is being planned through critical habitat without any regulatory
permits.
Mr. Aim, Counsel for the District, stated that the only action before the Board is entering
into an agreement with Shapell Industries to reimburse the District to do some of the
things that Dr. Siu is asking the District to do.
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Dr. Siu stated that he understands that; and if approving this today is a way of getting
a biological opinion, perhaps it would be a win/win. Dr. Siu stated further that it is the
District's sewer and the District must answer whether it is violating federal law.
President Menesini stated that his background is very much as an environmentalist, and
he just finished a study of the Alhambra watershed and Alhambra Creek. President
Menesini stated that his background is in the field of environmental studies and he is very
concerned with these issues. President Menesini stated that Dr. Siu should realize that
the District complies with many laws and rules in addition to federal and state laws
including those of Fish and Game and the Regional Water Quality Control Board. A major
concern in the Alhambra Watershed Study was septic tanks and the poisoning of
underground water. President Menesini stated that he can understand the wish to keep
the area pristine by stopping development, but the development has been approved and
the District must move forward to provide sewer service.
Mr. Aim, Counsel for the District, stated that he had indicated that one of the things the
agreement before the Board could do was to provide funding for some of the tasks Dr.
Siu wants. A biological opinion is a term of art under the Endangered Species Act. Mr.
Aim stated that he was merely using that as an example and did not mean to imply that
the District would undertake a biological opinion.
Dr. Siu stated that he appreciated the Board and staff comments. Dr. Siu stated that no
matter what happens today, it is important to open a dialogue.
President Menesini invited Dr. Siu to attend the May 20, 2002 Environmental Alliance
Discussion Series at noon at the John Muir Home in Martinez. The topic of discussion will
be watershed programs.
Ms. Christa Freihofner addressed the Board, stating that she called Dr. Siu and invited him
to address the Board. Ms. Freihofner stated that she is interested because anything that
goes through Dr. Siu's property will come to the Dougherty Tunnel and Trunk Sewer. Dr.
Siu has indicated that he is willing to work with the District and Shapell. Ms. Freihofner
stated that she hopes a solution can be found that will make everyone happy.
Following discussion, it was moved by Member Lucey and seconded by Member Hockett,
that the General Manager be authorized to execute the proposed agreement with Shapell
Industries of Northern California for acquisition of needed easements for the Wendt Ranch
Offsite Sewer, Job 5436. There being no objection, the motion was unanimously
approved.
Mr. Batts noted that there is ongoing litigation that could impact any future action taken
by the District.
BREAK
At 4:48 p.m., President Menesini declared a recess, reconvening at the hour of 5:01 p.m.
with all parties present as previously designated.
At this time, President Menesini reverted to the order of the agenda.
7. BIDS AND AWARDS
a.
AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MOUNTAIN
CASCADE. INC.. AUTHORIZE CONSULTANT AGREEMENTS WITH CAROLLO
ENGINEERS. SOHA ENGINEERS. DCM/JOYAL ENGINEERING. AND FOR
INSPECTION SERVICES FOR THE SAN RAMON SCHEDULE "C" FORCE MAIN
PROJECT. DP 5554
Mr. Batts, General Manager, introduced Mr. Michael Penny, Associate Engineer, who
stated that bids for the San Ramon Force Main Schedule "C" Project were opened on April
25, 2002. Nine bids were received. The low bid of $2,748,725 was submitted by
Mountain Cascade, Inc. The engineer's estimate was $4,400,000. Mr. Penny stated that
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factors that contributed to the low bid included stiff competition between pipe suppliers,
stiff competition between tunneling contractors, a change in the pipe design, and stiff
competition between general contractors. Bidding this job at this time has saved the
District ratepayers money. Mr. Penny reviewed the budget for the project, stating that
the total cost of the project will be just under $4.5 million.
Mr. Penny stated that there are several key project issues. Because of multiple headings,
additional construction inspection may be needed. Because of the significant amount of
public contact on this project, $135,000 was included in the project budget for working
with residents and the public. Preconstruction damage assessment will be done. Mr.
Penny stated that the final key project issue is obtain right of entry from Contra Costa
County. The District's existing easement is under the Ironhorse Trail, a concrete path.
District staff is working with the County to swap easements with the County's light rail
corridor, and the General Manager has been working with senior County staff to try to
expedite this.
Following discussion, it was moved by Member Boneysteele and seconded by Member
Hockett, that award of a construction contract in the amount of $2,748,725 for
construction of the San Ramon Schedule "C" Force Main Project, DP 5554, be authorized
to Mountain Cascade, Inc., the lowest responsible bidder contingent on a Right to Enter
Permit being acquired from Contra Costa County; that consulting
agreements/amendments with Carollo Engineers, SOHA Engineers, and DCM/Joyal
Engineering be authorized; and that an agreement for additional inspection services for the
project be authorized, if required. There being no objection, the motion was unanimously
approved.
8. REPORTS
a.
GENERAL MANAGER
1 )
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Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital
Projects Division Manager, who reported that on April 23, 2002, the
tunneling subcontractor William C. Smith Company reached the west portal
of the Dougherty Tunnel. Photographs were distributed to the Board. The
tunneling machine is now being dismantled and removed. Following clean
up, Mountain Cascade will begin installing the pipe in the tunnel. There is
a significant amount of work to be done at the west portal. No additional
public contacts have been received.
Mr. Batts, General Manager, stated that in response to a presentation made
to the Board by Mr. John Pearl, the new Collection System Operations
(CSO) Division Manager, a workshop was held on April 29, 2002 to discuss
ways to reduce the increasing number of overflows and the large number
of construction backlog jobs. At the CSO Board Workshop on April 29,
2002, staff recommended the following near term actions as the initial
steps toward this goal:
.
Clean additional sewers especially in the overflow crescent to reduce
the total number of overflows; and
.
Reduce the construction backlog by mobilizing more construction
crews and by creating capital project(s) for contract spot sewer
repairs.
To accomplish these actions, staff recommended increasing staff by adding
two Maintenance Crew Leaders and two Maintenance Crew Members,
proposing that two positions be added this summer and the remaining two
be added later in the fall. Based on adding the additional positions, it is
estimated that in the next 12 months, an additional 500,000 feet of sewer
could be cleaned and the construction backlog of priority jobs could be
reduced to as low as 50. As indicated at the workshop, the proposed
approach may not initially result in fewer overflows since it will take several
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years to get sewer cleaning to the proper frequency and the sewer lines will
continue to deteriorate. During the next 12 months, staff will routinely
update the Board on the amount of sewer cleaned, the number of system
overflows, the repair backlog, and employment of improved techniques and
technology. Based on the progress of this strategy, the findings of the
Engineering Department's TV inspection program, and the status of
proposed new collection system regulations, staff may make additional
recommendations to the Board in the future. A position paper will be
presented for the Board consideration at the next Board meeting.
3)
Mr. Batts, General Manager, stated that due to the lateness of the hour the
update on National Pollutant Discharge Elimination System (NPDES) permit
appeals will be held over until the next Board Meeting.
4)
Mr. Batts, General Manager, announced that the sale of surplus District
equipment was held on April 6, 2002, and generated net proceeds of
$36,225. First Capitol Auction of Vallejo conducted the auction.
5)
Mr. Batts, General Manager, stated that at the April 4, 2002 Board Meeting
the District's purchasing agreement and contract authorization limits were
reviewed, and on April 18, 2002 the Board approved the policy and
procedure to implement Board direction on the modification to the
incremental authorization limit to 15 percent of the contract or $10,000,
whichever is greater. The Board did not alter the staff authorization limits.
To ensure that there is clarification on this, Mr. Batts stated that any
agreement exceeding the General Manager's authorization limit would
obviously require Board approval. Once Board approval is obtained, staff
was given the authority to revise the agreement by an additional 1 5 percent
or $10,000, whichever is greater. The Board agreed that was their
direction.
6)
Mr. Batts, General Manager, stated that at the recent Capital Improvement
Budget Board workshop there was a presentation on Management
Information System (MIS) projects which included an overview of the
computer projects being overseen by and coordinated with MIS for the
coming year. One project was inadvertently omitted from the discussion
since preliminary discussion had already begun. The District has been
considering the replacement of its sewer network analysis program, SNAP,
for a number of years. This program is a 17-year old computer model of the
District's sewer system and it is used almost daily to assess the capacity
and hydraulic characteristics of various parts of the District collection
system. The replacement of this program was budgeted in the original
2001-2002 Capital Improvement Budget and was also included in the
original MIS Plan presented to the Board last fiscal year. Staff will be
proceeding with this project and a position paper will be presented to the
Board in the next month.
7)
Mr. Batts, General Manager, announced that the District will be advertising
for bids for the Lafayette Sewer Renovation Project, Phase 3B. The
engineer's estimate for this work is $1.5 million.
8)
Mr. Batts, General Manager, announced that the District will be advertising
for bids for Nondestructive Potholing for Underground Utilities and for
Underground Utility Locating Services. These are three-year service
contracts that provide information for Engineering planning and design of
sewer construction capital projects.
Mr. Batts, General Manager, reported that on Saturday, April 20, 2002, the
District conducted a household hazardous waste mobile and e-waste
collection event in conjunction with the Central Contra Costa Solid Waste
Authority. The event was held in Danville. There were 725 appointments
scheduled and 644 customers actually showed up. Again there were some
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11 )
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b.
problems with the telephone appointment system used by Philips Services.
The mobile collection event did not affect participation at the permanent
Household Hazardous Waste (HHW) Collection Facility. On April 20, 134
customers were served at the HHW Collection Facility. That is the busiest
day since last August.
10)
Mr. Batts, General Manager, announced that staff has been asked to grant
a patent license for Fairfield-Suisun Sewer District to use the District's
design for pressure relief doors on the secondary clarifiers. The District
received a patent for this design in February 2002. In the past, staff has
requested the Board of Directors to authorize the General Manager to
execute a patent license agreement with other agencies for this purpose.
If there is no objection, that will be done. Fairfield-Suisun will reimburse the
District for staff and legal time in the amount of $1,000. The Board voiced
no objection.
Mr. Batts, General Manager, announced that the District has been selected
as one of three local businesses to receive Senator Tom Torlakson's "Fit
Business" Awards. The District is being recognized for its Wellness
Program which was started in 1990.
Mr. Batts, General Manager, reported that the Regional Water Quality
Control Board (RWQCB) conducted its annual inspection of the District's
treatment plant on May 7,2002. Due to time constraints by RWQCB staff,
the Level B inspection, which normally takes three days, was completed in
4 % hours. The inspection consisted of a plant tour, review of maintenance
activities and records, status of electronic operations and maintenance
(O&M) manuals, and review of laboratory procedures and records. The
inspection report will be completed in six to eight weeks. The inspector's
comments were very positive. In particular, he was impressed with the
backlog reduction in maintenance work orders, the substantial progress on
the O&M manuals, and the treatment plant performance. He indicated that
the District was one of the few treatment plants in the Bay Area that had
not received one or more mandatory minimum penalties for permit
violations.
COUNSEL FOR THE DISTRICT
None
c.
SECRETARY OF THE DISTRICT
None
d.
BOARD MEMBERS
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Member Lucey and Director of Operations Jim Kelly reported on the May 1-
4, 2002 California Association of Sanitation Agencies (CASA) conference.
Mr. Kelly distributed a written report and handouts from the conference. A
highlight of the conference was Principal Engineer Tad Pilecki's presentation
on micro tunneling experiences at the District.
Member Lucey reported on the May 8, 2002 Household Hazardous Waste
(HHW) Committee meeting. Topics of discussion included the Request for
Proposals for Procurement of Household Hazardous Waste Disposal and
Temporary Staffing Services, status of HHW Collection Facility operations
and participation levels, and the proposed reduction in the number of mobile
collection events from three per year to two per year to contain costs.
President Menesini invited all those interested to attend the May 20, 2002
Environmental Alliance Discussion Series which will feature a discussion of
the Clean Water Program and new requirements for development.
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9. ENGINEERING
a.
AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH
SHAPELL INDUSTRIES OF NORTHERN CALIFORNIA FOR ACQUISITION OF
EASEMENTS FOR THE WENDT RANCH OFFSITE SEWER PROJECT. JOB 5436
This item was taken out of order earlier in the agenda.
10. HUMAN RESOURCES
a.
APPROVE STAFFING PLAN FISCAL YEAR 2002-2003
Mr. Batts, General Manager, stated that the District Staffing Plan was reviewed with the
Board at the April 18, 2002 Board Meeting. The changes discussed at the recent
Collection System Operations (CSO) Division Board workshop and discussed earlier at this
meeting have not been included in the Staffing Plan. They will be presented in a separate
position paper at a future Board Meeting for the Board's consideration. The Board also
recently authorized hiring three Staff Engineers. The recruiting process yielded an
outstanding candidate pool. Two female Staff Engineers have been hired and an offer has
been extended to a third.
It was moved by Member Hockett and seconded by Member Nejedly, that the Staffing
Plan for Fiscal Year 2002-2003 be approved as recommended. There being no objection,
the motion was unanimously approved.
11. APPROVAL OF MINUTES
a.
MINUTES OF APRIL 4. 2002
It was moved by Member Hockett and seconded by Member Nejedly, that the minutes of
April 4, 2002 be approved as presented. There being no objection, the motion was
unanimously approved.
b.
MINUTES OF ADJOURNED REGULAR MEETING OF APRIL 9. 2002
It was moved by Member Nejedly and seconded by Member Hockett, that the minutes of
the adjourned regular meeting of April 9, 2002 be approved as presented. There being
no objection, the motion was unanimously approved.
12. APPROVAL OF EXPENDITURES
a.
EXPENDITURE LIST DATED MAY 9.2002
Member Boneysteele, Chair of the Budget and Finance Committee, stated that he and
Member Hockett reviewed the expenditures. Member Boneysteele drew the Board's
attention to Check No. 138188 to Hood and Strong in the amount of $937.50, noting
that this was Hood and Strong's cost to the District for reviewing its records retention
schedule and indicating it would not change its policy with regard to retention of records
relating to the District.
It was moved by Member Boneysteele and seconded by Member Hockett, that the
Expenditure List dated May 9, 2002, including Self Insurance Check Nos. 101867-
101874, Running Expense Check Nos. 138056-138256, and Sewer Construction Fund
Check Nos. 24445-24494, be approved as recommended. There being no objection, the
motion was unanimously approved.
Member Lucey requested that staff notify Hood and Strong that this item was singled out
by the Board and at least one Board member did not think it was reasonable.
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13. BUDGET AND FINANCE
a.
RECEIVE MARCH 2002 FINANCIAL STATEMENTS
Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance
(O&M) for the month of March 2002, noting that expenditures were $132,000 less than
budget, representing a 4.6 percent favorable variance. Year-to-date O&M expenditures
were $2.3 million less than budget, representing an 8 percent favorable variance. Year-
to-date O&M revenues of $23,543,000 were $404,000 less than budget, representing
a 1.7 percent unfavorable variance.
Ms. Ratcliff reported that year-to-date Sewer Construction Fund expenditures were
$23,170,000, and year-to-date Sewer Construction Fund revenues were $14,655,000,
reducing the Sewer Construction Fund balance by $8.5 million.
Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills
and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with
interest rates ranging from 1.7 percent to 6.7 percent. The latest interest rate as of
February 2002 was 1.7 percent. The average yield of the District's LAIF account through
February 2002 was 2.97 percent.
President Menesini declared that the March 2002 Financial Statements were duly
received.
b.
REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF INSURANCE FUND
AND APPROVE THE ALLOCATION OF $225.000 TO THE FUND FROM THE 2002-
2003 O&M BUDGET
Mr. Batts, General Manager, introduced Mr. Randall M. Musgraves, Director of
Administration, who reported on the status of the Self Insurance Fund and presented the
proposed Self Insurance Fund Budget for 2002-2003. Mr. Musgraves stated that the
insurance market is hardening and that will result in increased insurance costs of up to
$50,000 to $60,000 more for the same coverage, if it is even possible to get the same
coverage. Staff is working with a broker to finalize a proposal for insurance coverage and
costs. Mr. Musgraves stated that claims are also increasing in cost. Both of these issues
will reduce the Self Insurance Fund reserves by about $400,000 this year and
approximately the same amount next year.
Mr. Musgraves reviewed the proposed 2002-2003 Self Insurance Fund Budget and the
budgeted revenue and expense for Sub-Funds A, B, and C, noting that the total revenue
for 2002-2003 is budgeted to be $418,000 and total expense is budgeted to be
$975,000 based on historical projections. An actuarial evaluation will be conducted by
Advanced Risk Management Techniques, Inc. Government Accounting Standards Board
Statement No.1 0 (GASB-10) requires that an actuarial study be performed every two
years. Currently the recommended funding level for Fund A is expected to be in the range
of $1,066,000 and the recommended funding level for Fund B is expected to be in the
range of $2,450,000 based on an initial evaluation from Advanced Risk Management
Techniques, Inc., the same group that conducted the actuarial evaluation for the District
two years ago. Mr. Musgraves stated that if any significant changes occur, he will come
back to the Board. In closing, Mr. Musgraves requested that the Board receive the
proposed 2002-2003 Self Insurance Fund Budget and that $225,000 be allocated from
the O&M Budget to the Self Insurance Fund.
It was moved by Member Nejedly and seconded by Member Boneysteele, that the
proposed 2002-2003 Self Insurance Fund Budget be received and that allocation of
$225,000 from the 2002-2003 O&M Budget to the Self Insurance Fund be approved.
There being no objection, the motion was unanimously approved.
c.
SET A PUBLIC HEARING ON JUNE 6. 2002 TO CONSIDER THE COLLECTION OF
SEWER SERVICE CHARGES BY PLACING THEM ON THE COUNTY TAX ROLL AND
TO RECEIVE PUBLIC COMMENT ON THE 2002-2003 OPERATIONS AND
MAINTENANCE BUDGET AND THE SELF INSURANCE FUND BUDGET
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Mr. Batts, General Manager, stated that this position paper would normally be on the
Consent Calendar; however, staff has placed it on the agenda for several reasons. At the
November 15, 2001 and December 20, 2001 Board Meetings rate setting issues for the
2002-2003 fiscal year were discussed. At the January 24, 2002 Financial Planning Board
Workshop and the February 7, 2002 Board Meeting, Board input was provided that the
Sewer Service Charge for the 2002-2003 fiscal year will be set at the $248 per
residential unit equivalent (RUE) as set forth in the existing ordinance approved by the
Board in fiscal year 2001-2002. Mr. Batts stated that any change in the existing
ordinance to lower the Sewer Service Charge would require a public hearing, and direction
from the Board to set that public hearing must be given at this meeting in order to meet
the noticing requirements.
Member Lucey stated that he thinks the Sewer Service Charge should be lowered.
Member Hockett stated that the majority of the Board agreed that the $24 Sewer Service
Charge increase set forth in the existing ordinance should be made.
It was moved by Member Boneysteele and seconded by Member Hockett, that public
hearings be set for 2:00 p.m. on June 6, 2003 to receive public comment on the
collection of Sewer Service Charges by placing them on the County tax roll, and to
receive public comment on the 2002-2003 Operations and Maintenance Budget and Self
Insurance Fund Budget. Motion approved with Member Lucey abstaining.
d.
ADOPT RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF REVENUE
INSTALLMENT CERTIFICATES. AND AUTHORIZING THE DELIVERY OF AND
APPROVING THE PRELIMINARY OFFICIAL STATEMENT FOR 2002 REVENUE
INSTALLMENT CERTIFICATES
This item was taken out of order earlier in the agenda.
e.
ADJOURN REGULAR BOARD MEETING AND CONVENE AS THE BOARD OF
DIRECTORS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES
FINANCING AUTHORITY
This item was taken out of order earlier in the agenda.
14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None
15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS
None
16. ADJOURNMENT
There being no further business to come before the Board, President Menesini adjourned
the meeting at the hour of 5:53 p.m. to reconvene at 2:00 p.m. on May 23, 2002 for an
Adjourned Regular Board Meeting.
/ ~ L-1"1 1/- ."
{ lia I'Ve CÎ (. /L/~/~L!¿~
President of the Board of Directors,
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGNED:
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