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HomeMy WebLinkAboutBOARD MINUTES 05-23-02 172 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 23,2002 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 23, 2002. President Menesini called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Hockett, Boneysteele, Menesini ABSENT: Members: Lucey Member Lucey entered the meeting at the hour of 2:24 p.m. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS INTRODUCE ROBERT CLELAND. NEWLY HIRED MAINTENANCE CREW MEMBER I . INTRODUCE LUIS HERNANDEZ. NEWLY HIRED MAINTENANCE CREW MEMBER I . INTRODUCE GREGORY PALMER. NEWLY HIRED MAINTENANCE CREW MEMBER I . . JAMES ZATEZALO. VEHICLE AND EQUIPMENT SERVICE WORKER Mr. Robert Cleland, Maintenance Crew Member I, Mr. Luis Hernandez, Maintenance Crew Member I, Mr. Gregory Palmer, Maintenance Crew Member I, and Mr. James Zatezalo, Vehicle and Equipment Service Worker, were introduced and welcomed to the District by President Menesini and the Board of Directors. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. RECEIVE ASSOCIATION OF METROPOLITAN SEWERAGE AGENCIES (AM SA) NATIONAL ENVIRONMENTAL ACHIEVEMENT AWARD FOR PUBLIC INFORMATION AND EDUCATION FOR THE DISTRICT'S SEWER SCIENCE WASTEWATER LABORATORY PROGRAM Mr. Charles W. Batts, General Manager, introduced Mr. Randall M. Musgraves, Director of Administration, who stated that the Sewer Science Wastewater Laboratory Program was developed with the City of Palo Alto and the South Bayside System Authority. Program material was distributed to the Board. This program has reached 1,271 high school students at seven schools in four cities in the District's service area during its three years of operation. In addition, it has reached 1,140 high school students in Palo Alto and 2,725 high school students in South Bayside service areas. Mr. Musgraves stated 05 2Q U 02 173 that this has been a very successful program and he recognized District staff responsible for this program: Harriette Heibel, Ken Grubbs, Son Nguyen, and Chris Carpenter. President Menesini congratulated Ms. Heibel and Messrs. Grubbs, Nguyen, and Carpenter on receipt of the Association of Metropolitan Sewerage Agencies (AMSA) National Environmental Achievement Award for Public Information and Education for the Sewer Science Wastewater Laboratory Program, a joint project with South Bayside System Authority and the City of Palo Alto. b. RECEIVE CERTIFICATE OF RECOGNITION FROM SENATOR TOM TORLAKSON FOR THE DISTRICT'S WELLNESS PROGRAM Mr. Batts, General Manager, stated that the District was recognized by Senator Tom Torlakson for its Wellness Program. The Senator's Fit Business Award was also presented to two other local businesses, Dow Chemical Company and Cerus Corporation. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager and Chair of the District's Wellness Committee. Mr. Swanson stated that it was his pleasure to accept Senator Tom Torlakson's Fit Business Award for the District's Wellness Program. Mr. Swanson stated that this award is different than some awards the District receives because it was not for what the District has done but for how it was done. In 1 990 the Wellness Program began with the thought that healthier employees are safer and more productive employees. Over half the District employees participate in the program one way or another. The Wellness Program includes such things as an annual health fair, fitness challenges, brown bag lunches on wellnes9 topics, and quarterly blood pressure checks. Mr. Swanson presented the Certificate of Recognition from Senator Tom Torlakson to President Menesini. President Menesini commended Mr. Swanson for his leadership in this area and expressed his appreciation for this recognition from Senator Tom Torlakson. 4. CONSENT CALENDAR Mr. Batts, General Manager, stated that Consent Calendar Item e., attendance at the Agilent Technologies Gas Chromatograph/Mass Spectrometer training session, is being pulled from the agenda as the training session is full. It was moved by Member Boneysteele and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. through d. and excluding Item e. which was pulled from the agenda, be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The President of the District Board of Directors and the Secretary of the District were authorized to execute Quitclaim Deeds to Arthur A. Amos (APN 270-250-050), and Jonathan K. Lei and Diann L. Lei (APN 270-310- 010) for two easements in the Orinda area; staff was authorized to record said Quitclaim Deeds; and Resolution Nos. 2002-031 and 2002-032 were adopted to that effect. Motion approved on the following vote: AYES: Members: Boneysteele, Nejedly, Hockett, Menesini NOES: Members: None ABSENT: Members: Lucey b. The contract work for the Aeration Air Leaks Damage Assessment Project, DP 6157A, performed by D&D Construction Company was accepted; and the filing of the Notice of Completion was authorized. 05 23 02 174 ABSENT: d. Motion approved on the following vote: AYES: Members: Boneysteele, Nejedly, Hockett, Menesini NOES: Members: None ABSENT: Members: Lucey c. The contract work for the Filter Plant Rotary Wash and Drain-Back Channel Piping Upgrades Project, DP 7183C, by Kaweah Construction Company was accepted; and the filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Boneysteele, Nejedly, Hockett, Menesini NOES: Members: None Members: Lucey Formation of a contractual assessment district consisting of 1 2 properties in the EI Alamo area of Danville was authorized; Resolution No. 2002-033, a resolution of intention to create EI Alamo Contractual Assessment District (CAD) No. 2002-2 for the purpose of installing sewer improvements, was adopted; Resolution No. 2002-034 was adopted, approving the boundary of the assessment district; and Resolution No. 2002-035 was adopted, requesting consent from the Town of Danville for CCCSD to conduct proceedings for EI Alamo CAD No. 2002-2. Motion approved on the following vote: AYES: Members: Boneysteele, Nejedly, Hockett, Menesini NOES: Members: None ABSENT: Members: Lucey e. The request for authorization for Tri Nguyen to attend the Agilent Technologies Gas Chromatograph/Mass Spectrometer Training, May 29- 31,2002, in Foster City, California, at a cost not to exceed $1,700, was removed from the agenda since the training session is full. 5. HEARINGS CONDUCT A PUBLIC HEARING ON THE DRAFT FISCAL YEAR 2002-2003 CAPITAL IMPROVEMENT BUDGET ADDENDUM AND APPROVE THE ADDENDUM FOR INCLUSION IN THE 2002-2003 DISTRICT BUDGET a. Mr. Batts, General Manager, introduced Ms. Ann E. Farrell, Director of Engineering, who provided a comparison between the original two-year Capital Improvement Budget (CIB) and Addendum, noting that the budget numbers are quite similar. Staff tried to contain spending and was able to reduce the 2002-2003 CIB expenditures (without the San Ramon projects) by $2 million from the original $20.7 million in the 2002-2003 CIB, to $19.2 million in the 2002-2003 Addendum. Ms. Farrell stated that total expenditures for the San Ramon projects actually increased from $6.5 million to $9.0 million, but that figure does not account for the very favorable bid just received on the San Ramon Force Main Project. In the 2002-2003 CIB, revenues of $21.4 million were projected, less debt service of $1.3 million for total revenues of $20.0 million resulting in a projected budget deficit of nearly $7.5 million. In the 2002-2003 Addendum revenues are projected to be $20.3 million plus bond proceeds of $15 million and less debt service of $2 million for 05 23 02 175 total revenues of $33.3 million, resulting in nearly $5.1 million increase in the Sewer Construction Fund reserve. Ms. Farrell reviewed the 2002-2003 Capital Program expenditures for the individual programs. Planned expenditures for the Collection System Program total $25,179,000. The major projects planned for fiscal year 2002-2003 are: Dougherty Tunnel and Trunk Sewer ($5,500,000)* San Ramon Force Main ($5,480,000) San Ramon Pumping Station Renovations ($3,525,000) Collection System Renovation Program ($2,090,000) Pumping Station Supervisory Control and Data Acquisition (SCADA) and Power Management ($1,735,000) . Concord Industrial Force Main ($1,376,000) . Collection System Urgent Projects ($750,000) . TV Inspection Program ($700,000) . Development Projects Sewerage ($600,000) . Contractual Assessment Districts ($600,000) . A-Line Easement Acquisition ($540,000) . Rossmoor Sewer Improvements ($472,000) * Will be reimburse by developers . . . . . Planned expenditures for the Treatment Plant Program total $6,280,000. Major projects are: . . . . Aeration Blowers Reconditioning ($2,000,000) Influent Pump #5 Pipe Modifications ($570,000) Treatment Plant Soil Remediation - Basin A ($446,000) Aeration Air Leaks Damage Assessment ($421,000) Planned expenditures for the General Improvements Program total $1,924,000. Major projects are: . . Equipment Budget ($600,000) MIS Plan ($500,000) Planned expenditures for the Recycled Water Program total $310,000. Ms. Farrell stated that the Industrial Recycled Water Project was the main recycled water project. That project has been deferred due to the lack of interest by Contra Costa Water District, so just minor maintenance work is planned for fiscal year 2002-2003. Ms. Farrell stated that in order to contain spending, the following major 2002-2003 projects were deferred for a total expenditure reduction of $4,357,000: . . Solids Conditioning Building Ventilation Improvements ($017,000/$10,000) Lower Orinda Pumping Station Renovation ($2,000,000/$181,000) M4-A Force Main Relocation ($1,235,000/$126,000) Recycled Water Industrial Demonstration Project ($632,000/$10,000) . . Ms. Farrell stated that new projects will be added by Board approval of the Capital Improvement Budget Addendum. The costs listed are total project costs. The total amount will not necessarily be spent in 2002-2003. The 2002-2003 Treatment Plant Program new project list adds: . . . . . Aeration Air Renovations ($1,300,000) Fire Alarm Panel Replacement ($57,000) North Clarifiers Paving Improvements ($220,000) Plant Control System Improvements ($2,724,000) Standby Pumps Refurbishment ($825,000) 05 23 02 176 The 2002-2003 Collection System Program new project list adds: . . . Alhambra Valley Facilities Planning Study ($32,000) Concrete Corrosion Renovation ($2,065,000) Cement Sewer Evaluation ($64,000) The 2002-2003 General Improvements Program new project list adds: . . Collection System Operations Yard Paving ($138,000) Fuel System Modifications ($144,000) Headquarters Office Building HV AC and Roof Renovation ($481,000) . Ms. Farrell stated that the original two-year CIB projected that an additional Board authorization of $16,299,000 would be required for the 2002-2003 fiscal year. It is now recommended that $13,325,000 be authorized from the Sewer Construction Fund for the 2002-2003 fiscal year to supplement the authorized funds carried over from 2001-2002 for a total 2002-2003 proposed authorization of $43,070,000 of which $33,711,000 will be spent in the coming year. At 2:28 p.m., President Menesini opened the public hearing to receive comments on the draft Addendum to the Capital Improvement Budget for 2002-2003. There being no comments, the public hearing was closed. It was moved by Member Hockett and seconded by Member Boneysteele, that the Draft 2002-2003 Capital Improvement Budget Addendum be approved for inclusion in the 2002-2003 District Budget. The motion was approved with Member Lucey abstaining. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 6. BIDS AND AWARDS a. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO MCGUIRE AND HESTER. AUTHORIZE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH G.S. DODSON & ASSOCIATES. AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LICENSE AGREEMENT WITH EAST BAY MUNICIPAL UTILITY DISTRICT FOR THE CONCORD INDUSTRIAL FORCE MAIN. DP 5383 Mr. Batts, General Manager, stated that the Concord Industrial Pumping Station serves a portion of the City of Concord and an unincorporated area including the town of Clyde. The pumping station receives flow from the local collection system as well as from the Clyde Pumping Station and the Concord Naval Weapons Station. The pumping station currently has no backup force main. This project will install a new 14-inch force main that will provide increased capacity as well as redundancy in the Concord Industrial force main system. Eleven bids ranging from $715,515 to $1,700,000 were received. The lowest responsible bidder was McGuire and Hester. Following discussion of the area served and the revocable license agreement with East Bay Municipal Utility District, it was moved by Member Hockett and seconded by Member Boneysteele, that award of a construction contract in the amount of $715,515 for construction of the Concord Industrial Force Main, DP 5383, be authorized to McGuire and Hester, the lowest responsible bidder; that the General Manager be authorized to execute a professional engineering services agreement with G.S. Dodson & Associates 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 revocable license agreement with East Bay Municipal Utility District. There being no objection, the motion was unanimously approved. 05 23 02 177 b. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO RANGER PIPELINES. INC.. FOR THE ROSSMOOR SEWER IMPROVEMENTS PROJECT. PHASE 7. DP 5502 Mr. Batts, General Manager, stated that this is the seventh phase in a ten-year program established in 1995 to upgrade and repair existing sanitary sewer lines in the Rossmoor development for acceptance by the District. Upon completion of the work, these lines will become part of the District-maintained system. Mr. Batts noted that the District is experiencing a very favorable bidding climate on recent pipeline projects. Following discussion, it was moved by Member Hockett and seconded by Member Nejedly, that award of a construction contract in the amount of $266,000 for construction of the Rossmoor Sewer Improvements Project, Phase 7, DP 5502, be authorized to Ranger Pipelines, Inc., the lowest responsible bidder. There being no objection, the motion was unanimously approved. 7. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS a. ADOPT OUTSTANDING MODIFICATIONS TO ORDINANCE AMENDING DISTRICT CODE TITLE FOUR. PERSONNEL Mr. Batts, General Manager, stated that at the last Board Meeting, a public hearing was held and revisions to District Code Title 4, Personnel, were adopted with the exception of six concerns raised by Mr. David Rolley, President of the Central Contra Costa Sanitary District Employees Association. The Board requested a written explanation of the six items. Mr. Batts introduced Ms. Allison Woodall, the District's Labor Counsel, who stated that on May 16, 2002, she, Human Resources Manager Cathryn Freitas, Local One Business Agent Jere Copeland, Local One President David Rolley, and a Management Group representative Curt Swanson, met to discuss these issues. As a result of this meet and confer session, five of the six outstanding issues were resolved. . Local One withdrew its opposition to the proposed changes relating to 4.16.100 Provisional Appointments. . The District withdrew its proposed change relating to 4.24.030 Representation Unit, thereby keeping the phrase "broadest community of interest. " . Local One continues to object to the proposed revision relating to 4.24.090(A)(3) Employees Meeting on District Time. Staff recommends that the District's proposed revisions be adopted. . Local One withdrew its objection to the proposed change to 4.24.11 O(B) District Rights. . Local One has withdrawn its proposal relating to 4.24.11 O(D) Annual Union Meetings. . The District agreed to minor modification of the District's proposed changes to 4.24.11 O(F) Union Business Agent Access to Premises. Ms. Woodall stated that the parties could not reach agreement on the issue of letting more than one person off for the same purpose. The District felt it was its right to protect the business operation of the District. Local One felt they should be able to bring everyone that the Union felt was needed to a meeting and felt the District may abuse this by limiting personnel. Staff recommends that the District's proposed revisions be adopted. Ms. Woodall stated that she would be happy to answer any questions. It was moved by Member Nejedly and seconded by President Menesini, that Ordinance No. 222 be adopted, approving the proposed modifications to District Code Title Four, Personnel, as recommended with the exception that the word "broadest" will be deleted 05 23 02 178 in Section 4.24.030, and the words "without District authorization" will be added in Section 4.24.11 O(F). Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Nejedly, Menesini, Hockett, Lucey, Boneysteele None None 8. REPORTS a. GENERAL MANAGER 1 ) 05 23 Mr. Batts, General Manager, introduced Mr. William E. Brennan, Capital Projects Division Manager, who reported that two ductile iron bypass pipes are being placed inside the Dougherty Tunnel. This work is about half done. Mr. Brennan reported that one additional complaint has been received bringing the total number of public contacts to 51. Of those, 38 have been complaints, 11 were requests for information, and 2 were compliments. Mr. Brennan reported that the San Ramon Pumping Station preconstruction meeting was held and the Notice to Proceed was issued on May 15, 2002. Mr. Brennan stated that San Ramon Force Main right-of-way issues continue to be a focus. District staff is working with the County to resolve these issues. The County has indicated that the encroachment permit for approximately half of the project will be coming soon. On June 3, 2002, staff is expecting to issue a Notice to Proceed to the contractor. The District is trying to obtain this Right of Entry from the County for the portion of the project north of Bollinger Canyon. The District wishes to exchange its easement in this area with the County's. Mr. Brennan stated that efforts are being made by both the District and the County to expedite this, but it will take some time to get through the County process. 2) Mr. Batts, General Manager, stated that since 1997, the District has been under contract with Contra Costa County to provide stormwater inspection of commercial and industrial facilities for the County Clean Water Program. This agreement expires June 30, 2002. The County wishes to exercise the one-year extension provision in the agreement. Compensation for the inspection services covers the cost of approximately two District Source Control inspectors. Unless there is an objection by the Board, staff will proceed with extension of the existing agreement for one year. Discussion followed with regard to the manner of computing and payment of compensation provided by the agreement. It was noted that the contract is written based on a certain number of inspections being performed. This is intended to compensate the District for the total cost for District inspectors doing this work. If more inspections are done, the compensation goes up. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who described the Stormwater Inspection Program goals and approach. The District performs joint pretreatment and stormwater inspections. This is efficient for the County, the District, and the businesses. There is a 5-year inspection frequency goal, and a 1-year inspection frequency for businesses who have had recent violations. The District is currently in the fourth year of the first 5-year period and would like to extend the contract for the fifth year and begin work on developing a new contract. Mr. Swanson stated that the number of inspections performed each year since the program began has steadily increased from 492 in 1999 to a planned 609 in 2003. The District is reimbursed for 02 179 inspection, training, and administration costs. Labor costs include overhead, employee benefits, insurance, supplies and equipment. Revenue has increased as well, from $136,070 in 1999 to $200,000 budgeted in 2003. Mr. Swanson stated that unless there is objection from the Board, staff will proceed with the one-year extension to the contract. After the first of the year, staff will begin discussion on development of a new agreement with Mr. Don Freitas, the head of the County Clean Water Program. The possible scope of a future agreement would include continued inspections of restaurants, vehicle service facilities, and other permitted users; expansion of inspection focus to other business such as nurseries, lumberyards, fleet operations and corporation yards, concrete batch plants, pest control operators, and golf courses, parks and playfields; pollution prevention and educational efforts; and household hazardous waste collection efforts. Discussion followed with regard to inspections performed by the County rather than the District, and communication with the Regional Water Quality Control Board on this program. 3) Mr. Batts, General Manager, introduced Mr. James M. Kelly, Director of Operations, who provided an update on National Pollutant Discharge Elimination System (NPDES) permit appeals. Mr. Kelly stated that the District NPDES permit was issued on June 20, 2001. The District appealed the permit and asked that the appeal be held in abeyance. Other NPDES permits have also been appealed to the State Water Resources Control Board (SWRCB). Of the NPDES permits appealed, 21 were appealed by the permit holders, 3 were appealed by Baykeeper, 1 by Citizens for a Better Environment, and 1 by the Plumbers and Steamfitters Union. The recent remand of three permits indicates how the District would have fared. Mr. Kelly reviewed the issues relating to the NPDES permit State Water Resources Control Board remands of nearby dischargers including Tosco, Napa, and East Bay Municipal Utility District (EBMUD), including imposition of interim limits before the 303(d) list Total Maximum Daily Loads (TMDLs); first application of the California Toxic Rule/State Implementation Plan (CTR/SIP); and determination of reasonable potential, toxic standards, assimilative capacity, and dilution. Mr. Kelly stated that dilution is an important issue to the District because without dilution, the District would not meet its NPDES permit for many constituents. The East Bay Municipal Utility District (EBMUD) NPDES permit appeal related to imposition of interim limits before the 303(d) list TMDLs, assimilative capacity, and dilution. The EBMUD permit most resembles the District's, so it is an indication of how we would have fared had the District appealed and had the appeal been heard. The State Board remand was well reasoned and the appeal is uncertain. A restrictive definition of dilution could cause the District's limits to be more stringent. Mr. Kelly stressed that getting the TMDLs done quickly is also very important. With regard to the 303(d) list and TMDLs, mercury, PCB, selenium, legacy pesticides, and dioxin are of primary concern. Mr. Kelly stated that additional monitoring is required for copper, nickel, PAHs, and PBDPs. Staff believes that the District meets the requirements in these areas, but they are on the watch list. Copper and nickel have been taken off the 303(d) list and the cyanide limit has been proposed to be changed and that will help the District. Mr. Kelly stated that funds were requested from the Board earlier in the Fiscal Year 2002-2003 Budget to assist in getting the TMDL's done more quickly. Mr. Kelly stated that the District is still very concerned about the interim mass limits until the TMDLs are completed. EBMUD is considering whether or not to go ahead with its appeal. Bay Area Clean Water Agencies (BACW A) may also appeal or go forward with EBMUD as a partner. President Menesini thanked Mr. Kelly for the update. 05 23 02 180 5) 05 23 4) Mr. Batts, General Manager, stated that temporary staffing and waste disposal services for the District's Household Hazardous Waste Collection Facility has been provided by Philip Services Corporation since the facility was opened in 1997. The agreement with Philip Services expires on September 23, 2002. Requests for Proposals (RFPs), which were discussed on two occasions with the Board's Household Hazardous Waste Committee, will be going out in the near future. Mr. Batts stated that there is a separate budget issue relating to the number of mobile collection events. The Board directed staff to reduce the number of mobile collection events from three to two annually. Staff has prepared a draft letter to the Central Contra Costa Solid Waste Authority (CCCSWA) advising them of the planned reduction. Mr. Batts stated that the District should advise CCCSW A and the cities which may have an interest. Staff is seeking comments from the Board about the content of the draft letter. While not a partner with the District, CCCSWA is very interested in the mobile collection events. CCCSWA secured the grants to conduct the initial mobile collection events during the first two years of operation and most recently has conducted electronic waste collections in conjunction with the District's mobile collection events. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that an RFP for Disposal and Staffing Services for the Household Hazardous Waste Collection Facility will go out in the near future, seeking proposals from 12 potential contractors for a 3-year term with a 1-year extension provision if services are adequate. The proposals will be evaluated based on cost, experience, and technical factors. Mr. Swanson reviewed the schedule which calls for issuing the RFP on May 24, 2002, receipt of proposals by June 21, 2002, evaluation of proposals by July 19, 2002, Board approval on August 15, 2002, and award of the new contract on September 9, 2002 allowing for a couple weeks overlap with the existing contractor. Discussion followed with regard to requesting a discount in the disposal rate if the supplier has its own disposal site. Mr. Swanson stated that the second topic is the issue of mobile collection events. Since 1997, three mobile collection events have been conducted per year. One each in Danville, Lafayette, and San Ramon. The incremental cost for mobile collection events is $30,000 to $40,000. Electronic waste collection was conducted by CCCSW A at the Danville and Lafayette mobile collection events. Participation at the mobile collection events has increased each year due to different advertising and addition of electronic waste collection as follows: 1998 1999 2000 2001 2002 1 88 customers 441 customers 634 customers 1,258 customers 1,781 customers Mr. Swanson stated that participation in the mobile collection events has increased over the years, just as participation at the permanent Household Hazardous Waste Collection Facility has increased. Mr. Batts requested that the Board provide any comments they may have on the draft letter to him by the end of the week. Mr. Batts, General Manager, introduced Ms. Deborah Ratcliff, Controller, who reported that the sale of the District bonds took place on May 22, 2002 at 9:30 a.m. Mr. Tom Lockhard, the District's Financial Advisor, 02 181 joined staff for the formal bid process which was conducted on-line using a system called Parity. Six bids were received. Stone and Youngberg submitted the lowest bid, which was nine basis points below the highest bidder. Ms. Ratcliff stated that the interest rates will be between 4 to 5 percent, debt service will be approximately $1.3 million annually, and the District will receive approximately $15 million which will be invested in the District's Local Agency Investment Fund (LAIF) account on June 6, 2002. A reserve fund will be established and $1.3 million will be put into the reserve fund and kept there for 20 years until termination of the bonds, allowing for longer term investment. 6) Mr. Batts, General Manager, announced that the concern raised by Member Boneysteele, Chair of the Budget and Finance Committee, about the $937 charge from the District's external auditors, Hood and Strong, to respond to a Board question concerning retention schedules, was brought to the attention of a managing partner at Hood and Strong. As a result of that call, Hood and Strong has agreed to discount that invoice by 20 percent. 7) Mr. Batts, General Manager, announced that there will be a public workshop for the Lafayette Sewer Renovation Project, Phase 3B, on May 29, 2002 from 7:00 p.m. to 9:00 p.m. at the Lafayette Community Center, Manzanita Room, at 500 St. Mary's Road in Lafayette. This project differs significantly from previous phases in that there is a high percentage of sewer easement work that will involve close cooperation with residents for access and site restoration. In addition to the workshop, staff previously met individually with each property owner who has an easement sewer in the project. The engineer's estimate for the project is $1.5 million. 8) Mr. Batts, General Manager, announced that the District will be advertising for bids for the Headworks Facilities Improvement Project to add a bypass to increase the reliability of the primary effluent pumping system. The engineer's estimate for the project is $235,000. 9) Mr. Batts, General Manager, requested Board authorization to underfill an Associate Engineer position in the Plant Operations Division of the Operations Department. Mr. Jim Belcher, Senior Engineer, recently announced that he will be moving to the Seattle area in late June 2002. Mr. Belcher has been with the District for over 20 years, and he has played a key role in various plant and pumping station startup activities, energy management and procurement, and optimization of plant equipment and processes. Mr. Belcher has been a valued technical resource for the mechanical and electrical technicians. Mr. Belcher will be sorely missed and it will be difficult to replace him because of his detailed knowledge of the treatment plant, his broad range of technical knowledge, and his willingness to take on difficult tasks. Mr. Batts stated that in an effort to fill the void, staff would plan to underfill Mr. Belcher's position at the Associate Engineer level as soon as possible to allow some time for overlap. Staff is also working on an agreement to retain Mr. Belcher's services for a few months to help the transition of key projects and to coordinate activities with other District engineers. Energy management and procurement, as well as other key functions, are being assigned to current District personnel. 10) Mr. Batts, General Manager, stated that as mentioned by District Counsel at the last Board Meeting, as part of the District budget process and in compliance with state law regarding water and wastewater utility service to public schools, staff has sent a letter to each of the eight school districts served by the District, notifying them of the amount of the capital facilities component of the Sewer Service Charge. The letters also informed the school districts of the O&M and Capital Improvement Budget items on this agenda. No responses have been received to date. 05 23 02 182 05 11 ) b. c. 23 Mr. Batts, General Manager, introduced Mr. Bill Echols, Field Operations Superintendent, who reported on the Collection System Operations (CSO) repair work going on in Taylor Boulevard in Pleasant Hill. Mr. Echols showed a map and described the location of the work. The line was installed in the early 1970's. From 1995 through 1998, it has been on a three-month Hydroflush schedule because of heavy grease in a sag in the line. From 1998 to the present time, it has been on a two-month cleaning schedule. On April 10, 2002, the Hydroflush crew pulled back a large portion of clay pipe and could not get the nozzle back out. They called for a TV crew. Two tanks of water were put through to try to clean out the pipe. The water did not come back to the manhole. Mr. Echols stated that indicated there may be a void under Taylor Boulevard. An emergency repair was begun. It was found that there was no void under Taylor Boulevard. In the 1970's there was a project to bore under Taylor Boulevard and encase the pipe in an 18-inch steel casing. The water filled the casing and that is why the water did not come back. Principal Engineer Tad Pilecki and Supervising Engineering Assistant Lesley Klein assisted in finding the records of the 1970 project. Mr. Echols stated that a decision was made to replace the pipe because it had failed. At that time, CSO asked Mechanical Maintenance from the Plant to help with the steel casing. Mechanical Maintenance Technician III Don Botelli was released to work with CSO for this operation. Mr. Botelli was extremely helpful and easily saved two days on the job. The pipe had failed in several places inside the casement. Work proceeded on replacement of the pipe. To date, Taylor Boulevard traffic has not been stopped. No complaints have been received. CSO is removing the last piece of clay pipe this morning, May 23, 2002. CSO crews have worked hard to complete this project as quickly as possible and it should be completed in the near future. Mr. Echols stated that the project has had some benefits to the District. There is a closer working relationship between CSO and Mechanical Maintenance and the assistance provided by Engineering was very helpful. President Menesini and the Board commended the CSO team and all those who assisted on this project for their efforts. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, reported on recent actions concerning attorney-client confidentiality rules. An amendment was proposed to the Rules of Conduct for Attorneys dealing only with public agency attorneys. The proposed Rule was reviewed by the State Board of Governors and rejected because proposed modifications would be a conflict with the Business and Professions Code. SECRETARY OF THE DISTRICT 1 ) Ms. Joyce E. Murphy, Secretary of the District, distributed the District Key Contact List dated May 2002. 2) Mr. Murphy, Secretary of the District, announced that she will be out of town from May 25 through June 3, 2002. 3) Mr. Murphy, Secretary of the District, announced that there will be a presentation and tour of the District's Environmental Laboratory for the Sanitation and Water Agencies of Contra Costa County this evening at 6:00 p.m. The Board is invited to attend. 02 183 d. BOARD MEMBERS None BREAK At 4:02 p.m., President Menesini declared a recess, reconvening at the hour of 4: 17 p.m., with all parties present as previously designated. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH TALAVERA AND RICHARDSON FOR THE DESIGN AND IMPLEMENTATION OF THE REPLACEMENT SOFTWARE FOR COLLECTION SYSTEMS MODELING UPGRADE. DP 5915 Mr. Batts, General Manager, introduced Dr. Gail Chesler, Associate Engineer, who stated that the District's Sewer Network Analysis Program (SNAP) is an analytical tool that allows staff to model the collection system that carries sewage to the treatment plant. SNAP is used to examine the flow implications of proposed development projects, establish constraints on design for new and renovated sewers, plan for flow diversions and relief sewers, accommodate special discharge permits, and affirm regulatory responsiveness. Dr. Chesler showed an example of a SNAP pipe capacity analysis. SNAP uses a DOS program. The computer application is 18 years old and the operating system is obsolete. There is a continuing ongoing routine need for this analytical tool. Upgrading the program will provide some new functionality. The network will allow use by all stakeholders, giving designers the ability to run "what-if" scenarios to achieve the greatest cost savings and best design. Graphical User Interface will make additions of new sewers or changes in old sewers easier. The information can be displayed on the District's network. Land use codes and water consumption data will be available for the entire District. That information is now being incorporated by hand. Dr. Chesler reviewed the consultant selection process. Eight businesses with appropriate expertise received the request for a Statement of Qualifications (SOO). Three of those submitted an SOO. All three were invited to make a presentation. Two made presentations and Talavera and Richardson were selected based on their clear understanding of the District's needs, proposed approach to the project, reasonable cost, ability to work with the multiple District databases, and breadth of current experience writing user-oriented computer solutions to engineering problems. Dr. Chesler stated that this project has been discussed at great length with MIS. Following discussion, it was moved by Member Lucey and seconded by Member Boneysteele, that the General Manager be authorized to execute a professional services agreement with Talavera and Richardson in the amount of $195,000 for the design and implementation of a replacement application for Collection Systems Modeling Upgrade, DP 5915. There being no objection, the motion was unanimously approved. 10. HUMAN RESOURCES a. AUTHORIZE INCREASE IN COLLECTION SYSTEM OPERATIONS FIELD STAFF TO REDUCE OVERFLOWS AND CONSTRUCTION BACKLOG IN THE COLLECTION SYSTEM Mr. Batts, General Manager, stated that at the Collection System Operations (CSO) Board workshop held on April 29, 2002, staff recommended initial steps toward the near term goal of cleaning additional sewers especially in the overflow crescent to reduce the total number of overflows; and reducing the construction backlog by mobilizing additional construction crews and by creating capital project(s) for spot sewer repairs. 05 23 02 184 It is recommended that CSO field staff be increased by adding two Maintenance Crew Leaders and two Maintenance Crew Members. As discussed at the workshop, the proposed approach may not initially result in fewer overflows since it will take several years to get the sewer cleaning schedule to the proper frequency, and the sewer lines will continue to deteriorate. During the next 1 2 months, staff will routinely update the Board on the amount of sewer cleaned, the number of system overflows, the repair backlog, and improved techniques and technology employed. Based on the progress of this strategy, the findings of the Engineer Department's TV Inspection Program, and the status of proposed new regulations for collection system, staff may make additional recommendations to the Board in the future. It was moved by Member Nejedly and seconded by Member Hockett, that the addition of four field positions in the Collection System Operations Division be authorized: two Maintenance Crew Members 1/11 (I, G-53, $3,369.10 to $4,074.39, and II, G-59, $3,884.50 to $4,699.64) and two Maintenance Crew leaders (G-65, $4,474.90 to $5,423.12), increasing the CSOD field staff by four employees. There being no objection, the motion was unanimously approved. 11. APPROVAL OF MINUTES a. MINUTES OF APRIL 18. 2002 It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of April 18, 2002 be approved as presented. There being no objection, the motion was unanimously approved. 12. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 23. 2002 Member Boneysteele, Chair of the Budget and Finance Committee, stated that the committee met on May 19, 2002 and found no exception to any of the expenditures. It was moved by Member Boneysteele and seconded by Member Hockett, that the Expenditure List dated May 23, 2002, consisting of Self Insurance Check Nos. 101875- 101884, Running Expense Check Nos. 138257-138626, Sewer Construction Check Nos. 24495-24556, Payroll Manual Check No. 48836, and Payroll Regular Check Nos. 54072- 54094, be approved as recommended. There being no objection, the motion was unanimously approved. 13. BUDGET AND FINANCE a. RECEIVE THE 2002-2003 OPERATIONS AND MAINTENANCE BUDGET Mr. Batts, General Manager, stated that this is the scheduled Board Budget Workshop to receive the fiscal year 2002-2003 Operations and Maintenance (O&M) Budget which reflects a Sewer Service Charge increase of $24 established by the Board at the 2001- 2002 rate setting hearing and adopted by ordinance on June 21, 2001. Of the $24 Sewer Service Charge increase, $3 will be allocated to the O&M portion of the District's budget and $21 to the capital portion. As stated at the public hearing on the Capital Improvement Budget, the Sewer Service Charge is becoming an increasingly important source of revenue to the Capital Improvement Program. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who presented the comparison between the Ten Year Plan revenue and expense, and current budget projections for fiscal years 2001-2002 and 2002-2003. Ms. Ratcliff stated that revenues are very close to projections, and expenses are slightly lower, resulting in an overall favorable variance of about 1 percent for the two years. Ms. Ratcliff summarized the 2000-2001 actual, 2001-2002 projected, and 2002-2003 budgeted O&M revenues, expenses, and reserves. Revenues for 2001-2002 are projected to be $40,439,000 at fiscal year end compared to 2002-2003 budgeted revenues of $41,761,000. Expenses for 2001-2002 are 05 23 02 185 projected to be $38,629,000 at fiscal year end compared to 2002-2003 budgeted expenses of $41,422,000. The O&M fund balance at fiscal end year will grow from $3,372,000 to $5,182,000. Ms. Ratcliff provided a 2001-2002 budget to 2002-2003 budget comparison, noting that revenues are budgeted to increase from $40,992,000 to $41,761,000; expenses are budgeted to increase from $40,209,000 to $41,422,000; and reserves at the end of next year are budgeted to increase by $339,000, bringing the fund balance to $5,522,000. Ms. Ratcliff reviewed the key labor costs and the other key costs imbedded in the 2002-2003 O&M Budget as set forth in the handouts provided to the Board. Mr. Randall M. Musgraves, Director of Administration, stated that he did some reading and research to learn about the history and finances of the District. Mr. Musgraves provided a summary of what the District done over the last ten years since the employee count peaked in 1992-1993. In 1992-1993, the District had three core missions: wastewater collection, wastewater treatment, and solid waste franchising. Now in 2001- 2002, the District has seven core missions: wastewater collection, wastewater treatment, household hazardous waste collection, pollution prevention, recycled water, MIS, and stormwater inspections. In 1992-1993, there were 271.5 filled positions. There are currently 246 filled positions. This reduction and redeployment of staffing has resulted in cost savings since clearly salaries and benefits are the largest O&M expenses. Mr. Musgraves reviewed some major highlights from 1992 through 2001 as follows: . Transferred solid waste franchising to the Central Contra Costa Solid Waste Authority . Opened in-house (contract) copy center . Completed the Headworks Project . Started student education and public outreach programs . Began stormwater inspections . Opened Household Hazardous Waste Collection Facility . Opened new Environmental Laboratory . Began recycled water programs . Started using cogeneration for electricity Mr. Musgraves stated that also during this time there have been enhanced services and new programs, including: . Responsibility was assumed for more Rossmoor sewers . The Pollution Prevention Program was created in 1995 . Cogeneration was put on-line in 1996 . Chlorination and dechlorination were eliminated; and ultraviolet disinfection was added . The Communication Services Division was formed in 1996 . The Household Hazardous Waste Collection Facility was opened in 1997 . The County's Clean Water Program contract inspection program began in 1997 05 23 02 186 . The treatment plant started recycled water delivery in 1998 . The Management Information Systems (MIS) group was formed in 1998 . . . . Cogeneration of electricity (annual savings) Reduction in chemical use Revised ash contract in 1999 Reduction in natural and landfill gas usage Refinancing bonds over two years Reductions in hauling and spoils removal Outsourcing reprographics New NPDES permit limit for bacteria using fewer UV lamps Retirement cost prefunding . A new Environmental Laboratory was built in 2001 . The Household Hazardous Waste Collection Facility hours were increased in 2001 . . . . . Pollution Prevention and minimization (estimated) Total Maximum Daily Loads (cost of shared study program) Increased permit sampling and testing Increased odor control/corrosion control chemicals . Requirements in National Pollutant Discharge Elimination System (NPDES) permit were increased in 2001 . Mr. Musgraves stated that the District undertook various efforts to reduce costs including capitalizing on new technology. Some of the cost savings achieved were: 05 23 . New Title V air permit requirements began in 1999 $ 1,300,000 $ 525,000 $ 75,000 $ 400,000 $ 750,000 $ 90,000 $ 50,000 $ 220,000 $ 100,000 Mr. Musgraves stated that the District continues to perform its core missions as outlined earlier while working to meet the current District goals of full regulatory compliance, exceptional customer service, responsible rates, and high performance organization. This is being done in an arena of increased environmental regulations, loss of revenue coupled with increases in expenses, higher public scrutiny and expectations, and the need to maintain a skilled workforce. Through this, staff is trying to maintain or retain the past cost savings that were achieved, but greater refinements are required. In an effort to balance those challenges, staff is focusing on new technology and automation, partnerships, continuous improvement and innovation, and skill and knowledge training to maintain or increase the service level at the current staffing level or with fewer people. Mr. Musgraves stated that plans for the future include these enhanced services and new programs: $ $ $ $ 250,000 125,000 86,000 100,000 The following are planned non-labor cost reductions in the Plant Operations Division: Reassignment of two Plant Operators to be relief operators and to work on maintenance activities, reducing the maintenance work order backlog and overtime Partnered with Bay Area Clean Water Agencies (BACWA) to reduce cost of new NPDES-mandated ambient monitoring, Total Maximum Daily Loads studies, and studies required for interim limits . . Reduced use of outside services by doing additional work in-house for Laboratory services and Mechanical Maintenance 02 187 The following are planned non-labor cost reductions in the Collection System Operations Division: . Reduce vehicle inventory by improving vehicle assignments and utilization . Evaluate the use of chemical foam to reduce cleaning frequency on heavy root lines . . Work to further optimize CSO cleaning and construction work Reduced the number of hand-rod jobs, saving time and potential injuries . Increased use of crown spraying to prolong pipe life . Maintaining Pumping Stations staff while increasing the number of pumping stations to 23, up from 18 four years ago, and facilitating work on major capital projects at pumping stations . Reduction of support personnel, engineers, and administrators Mr. Musgraves stated that as vacancies come up, staff will constantly evaluate whether the positions can remain unfilled and evaluate whether they can be eliminated. Mr. Musgraves reviewed planned staffing by department stating that currently in the Administration Department, the Safety and Risk Manager position and Administrative Support Technician I position are vacant. In addition the Senior Building Maintenance Technician is vacant and unfunded. In the Engineering Department, Capital Projects Division, a Senior Engineer position and an Associate Engineer position are vacant. In the Operations Department there are eight vacant positions below baseline staffing. In addition, the Board just authorized addition of four positions to the Collection System Operations Division to meet service demands and requirements that the public and the Board have requested. Again, Mr. Musgraves stated that this is not just a cost savings issue. The District has the challenge of meeting service delivery and increasing regulatory requirements with an aging infrastructure. Ms. Ann E. Farrell, Director of Engineering, provided a comparison of Capital Improvement Budget (CIB) budgeted and projected expenditures for 2001-2002. Budgeted expenditures in 2001-2002 were $27,293,000 including the San Ramon Forcemain and Pumping Station Projects, and projected 2001-2002 expenditures including the San Ramon Forcemain and Pumping Station Projects are $21,076,000. In 2001-2002 revenues were budgeted at $19,214,000. Primarily because of a decrease in Connection Fee revenue and lower interest income, 2001-2002 revenues are now projected to be $14,898,000 at fiscal year end. Staff has made a concerted effort to defer expenditures to try to minimize the deficit, and did a good job of trying to manage the funds available. The 2002-2003 CIB expenditures of $20,976,000 were projected without the San Ramon projects and $27,538,000 with the San Ramon projects, compared to the 2002-2003 CIB Addendum budgeted expenditures of $19,206,000 without the San Ramon projects and $28,211,000 with the San Ramon projects. Ms. Farrell stated that in the 2002-2003 CIB, revenues of $21,364,000 were projected less debt service of $1.3 million for total revenues of $20,064,000 resulting in a projected deficit of $7,474,000. In the 2002- 2003 Addendum, revenues are projected to be $20,300,000 plus bond proceeds of $15,000,000 and less debt service of $2,000,000 for total revenues of $33,300,000 resulting in nearly $5.1 million being added to the Sewer Construction Fund reserve. Ms. Farrell stated that at the CIB Board Workshop, the following future revenue structure for capital projects was reviewed: . At current projections, the Capital program will be in a deficit mode until 2004-2005 . Need $15 million bond issue in 2002-2003 05 23 02 188 . Need $ 21 of the $ 24 Sewer Service Charge increase in 2002-2003 to bring the Capital Improvement Program (CIP) Sewer Service Charge to $41 per residential unit equivalent (RUE) . Need $12 of the $24 Sewer Service Charge increase in 2003-2004 to bring the CIP Sewer Service Charge to $53 per RUE . Need $4 of the $16 Sewer Service Charge increase estimated in 2004-2005 to bring the CIP Sewer Service Charge to $57 per RUE . Total of almost $40 per RUE increase in Sewer Service Charge over the next three years is needed . 2004-2005 CIP revenue equals expense at about $21 million per year with inflation . If spending is greater than $21 million per year, the CIP portion of the Sewer Service Charge must be further increased In closing, Ms. Farrell stated that the O&M reserve is looking better this year, but the District has still not infused enough revenue back into the Capital Improvement Program. President Menesini thanked staff for their presentations. 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None At 5:00 p.m., Member Nejedly requested to be excused and left the meeting. 16. CLOSED SESSION a. EXISTING LITIGATION The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation discussed was Central Contra Costa Sanitary District v. Orinda Moraga Disposal Service, Inc., et aI., Contra Costa County Superior Court No. C96-00562. At 5:00 p.m., President Menesini declared the closed session to discuss litigation pursuant to Government Code Section 54956.9(a) as noted above. At 5:28 p.m., President Menesini concluded the closed session and reconvened the meeting into open session. 17. REPORT OF DISCUSSION IN CLOSED SESSION On a 4/0 vote with Member Nejedly being absent, the Board authorized and approved settlement in the matter of William L. Lomow, an individual; Wilco Holdings, LLC, an Idaho limited liability company, Central Contra Costa Sanitary District, a public corporation (California); and Stephen E. Anderson, Receiver, pursuant to an Order Appointing Receiver in Central Contra Costa Sanitary District v. Orinda Moraga Disposal Service, Inc., et aI., Case No. CV OC 97-07178D, in the District Court of the Fourth Judicial District of the State of Idaho, in and for the County of Ada. 05 23 02 18. ADJOURNMENT There being no further business to come before the Board, President Menesini adjourned the meeting at the hour of 5:30 p.m. ~VJH ~) ~~ President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: S cre a of the Centr I ntra Costa Sa i ry District, County of Contra Costa, State of California 05 23 189 02