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HomeMy WebLinkAboutBOARD MINUTES 02-15-01 39 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 15, 2001 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on February 15, 2001. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Nejedly, Menesini, Lucey, Boneysteele, Hockett ABSENT: Members: None a. INTRODUCE NEW EMPLOYEES . JEREMIAH WALSH. VEHICLE AND EQUIPMENT SERVICE WORKER . ZOE POLLOCK. ASSISTANT LAND SURVEYOR Ms. Zoe Pollock, Assistant Land Surveyor, was introduced and welcomed to the District by President Hockett and the Board of Directors. Mr. Jeremiah Walsh, Vehicle and Equipment Service Worker, was unable to attend this meeting. 2. PUBLIC COMMENTS Mrs. Gayle Pulley, 1190 Glen Road, Lafayette, addressed the Board relative to work being done due to an overflow at 1190 Glen Road, Lafayette. Mrs. Pulley stated that she has written a couple letters to the District and has not had a response. Mrs. Pulley stated that the flooring for her home has arrived but installation has not been scheduled. Mrs. Pulley stated that there has been a miscommunication. She was told by a staff person from Supervisor Gayle Uilkema's office that the District had offered to replace the floor and roof. Mrs. Pulley stated that the floor was the fourth layer of vinyl on top of three other layers and she wants wood floors, and she would like a new roof. Mrs. Pulley showed a picture of a house near her home which is for sale for $3.5 million and stated that if the District would like to buy that home for her and take hers and try to sell it, that would be fine. Mrs. Pulley stated that she is fearful to go back into her house. In response to comments from Member Nejedly, Mr. Kenton L. Aim, Counsel for the District, stated that the District is not obligated to respond to any letters, but this District does respond to most letters. Mr. Aim stated that he does not think at this point it would be productive to get into a dialogue back and forth in letters on this matter. There being no further comments or questions, President Hockett thanked Mrs. Pulley for her comments. 3. CONSENT CALENDAR Following discussion in which Member Menesini requested maps showing the locations on Offers of Dedication in the future, it was moved by Member Menesini and seconded by Member Lucey, that the Consent Calendar, consisting of Items a. through z., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 2001-009 accepting work and Offer of Dedication at no cost to the District from Dayton Hudson Corporation, A Minnesota Corporation, Job 5025, Parcel 1, San Ramon area, was adopted and recording was authorized 02 15 01 40 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-010 accepting work and Offer of Dedication at no cost to the District from Dayton Hudson Corporation, A Minnesota Corporation, Job 5025, Parcel 2, San Ramon area, was adopted and recording was authorized. b. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution Nos. 2001-011 and 2001-012 accepting work and Offers of Dedication at no cost to the District from Alfred A. Affinito, Michael J. Affinito, and Mary T. Affinito, Job 5226, Parcels 1 and 3, Walnut Creek area, was adopted and recording was authorized. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-013 accepting work and Offer of Dedication at no cost to the District from William J. Green and Patricia D. Green, Job 5371, Parcel 2, Alamo area, was adopted and recording was authorized. d. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-014 accepting work and Offer of Dedication at no cost to the District from Herman Timmons and Patsy Ruth Timmons Tre, Job 5377, Parcel 2, Alamo area, was adopted and recording was authorized. e. Motion unanimously approved on the following vote: 02 AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-015 accepting work and Offer of Dedication at no cost to the District from Christopher Arai, Timothy R. Arai, Nathaniel Y. Arai, and Katherine A. First, all as tenants in common, Job 5377, Parcel 3, Alamo area, was adopted and recording was authorized. f. 15 01 41 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Meriësini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-016 accepting work and Offer of Dedication at no cost to the District from Shapellindustries, Inc., Job 5424, Parcel 1, San Ramon area, was adopted and recording was authorized. g. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-017 accepting work and Offer of Dedication at no cost to the District from Lawrence A. Schonberg and Belinda Schonberg, Job 5426, Parcel 1, Martinez area, was adopted and recording was authorized. h. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-018 accepting work and Offer of Dedication at no cost to the District from Brian F. Quinn and Kristine M. Quinn, Job 5430, Parcel 2, Lafayette area, was adopted and recording was authorized. I. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-019 accepting work and Offer of Dedication at no cost to the District from Theodore Barcelon and Ruth D. Barcelon, Job 5430, Parcel 3, Lafayette area, was adopted and recording was authorized. J. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-020 accepting work and Offer of Dedication at no cost to the District from Janin Associates, Job 5437, Parcel 2, Alamo area, was adopted and recording was authorized. k. 02 15 01 42 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: I. Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-021 accepting work and Offer of Dedication at no cost to the District from Mark Deppe, Job 5442, Parcel 2, Alamo area, was adopted and recording was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-022 accepting work and Offer of Dedication at no cost to the District from Clay Elwin and Joann Jai Selland, Job 5442, Parcel 3, Alamo area, was adopted and recording was authorized. m. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-023 accepting work and Offer of Dedication at no cost to the District from Lila E. Hart, Job 5442, Parcel 4, Alamo area, was adopted and recording was authorized. n. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-024 accepting work and Offer of Dedication at no cost to the District from Ellsworth Donald Swanson, Job 5442, Parcel 5, was adopted and recording was authorized. o. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-025 accepting work and Offer of Dedication at no cost to the District from Ann L. Barnes, Trustee of the Ann L. Barnes Trust, Job 5442, Parcel 6, was adopted and recording was authorized. p. 02 15 01 43 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-026 accepting work and Offer of Dedication at no cost to the District from Dale E. and Verlie M. Matson, Job 5442, Parcel 7, Alamo area, was adopted and recording was authorized. q. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-027 accepting work and Offer of Dedication at no cost to the District from Gary G. and Marilyn L. Meadors, Trustees of the Meadors Family Revocable Trust, Job 5442, Parcel 8, Alamo area, was adopted and recording was authorized. r. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-028 accepting work and Offer of Dedication at no cost to the District from Charles P. and Susan K. Wingard, Job 5442, Parcel 9, was adopted and recording was authorized. s. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-029 accepting work and Offer of Dedication at no cost to the District from Glenhall E. Taylor III and Vivica M. Taylor, Job 5442, Parcel 10, was adopted and recording was authorized. t. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-030 accepting work and Offer of Dedication at no cost to the District from Daniel G. and Catherine M. Aiello, Job 5442, Parcel 11, Alamo area, was adopted and recording was authorized. u. 02 15 01 44 02 Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-031 accepting work and Offer of Dedication at no cost to the District from Brian J. and Melissa A. Corcoran, Job 5442, Parcel 12, Alamo area, was adopted and recording was authorized. v. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-032 accepting work and Offer of Dedication at no cost to the District from John A. and Lianne M. Gildea, Trustees of the Gildea Family Trust, Job 5442, Parcel 13, was adopted and recording was authorized. w. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-033 accepting work and Offer of Dedication at no cost to the District from Robert F. and Susan c. Bosold, Job 5442, Parcel 14, Alamo area, was adopted and recording was authorized. x. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None Resolution No. 2001-034 accepting work and Offer of Dedication at no cost to the District from Carlos A. Efferson, Trustee Under That Certain Revocable Declaration of the Trust Dated March 14, 1983, recorded on March 14, 1983, in Book 11179 of the Official Records at Page 987, Contra Costa Records, Job 5442, Parcel 15, Alamo area, was adopted and recording was authorized. y. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: 15 01 Menesini, Lucey, Nejedly, Boneysteele, Hockett None None None a. 45 z. Resolution No. 2001-035 accepting work and Offer of Dedication at no cost to the District from Larry L. Stewart, Job 5442, Parcel 16, Alamo area, was adopted and recording wås authöfized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Nejedly, Boneysteele, Hockett None None 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 5. REPORTS GENERAL MANAGER 1 ) Mr. Charles W. Batts, General Manager, stated that due to the dynamic energy market and its significance to the District's Operations and Maintenance (O&M) Budget, staff will provide an energy update at each Board meeting. Mr. Batts introduced Mr. Jim Belcher, Senior Engineer and the District's "Energy Champion." Mr. Belcher stated that the District has formed an Energy Team. The first meeting was held on February 9, 2001, where discussion focused on the stated goals and roles of the Energy Committee, review of historical data, development of a proposed four prong action plan, and assignment of Subcommittee roles. The four Subcommittees are: . Procurement Strategies headed by Purchasing and Materials Manager Victoria Lamica and Senior Engineer Jim Belcher . Energy Conservation Opportunities headed by Director of Engineering Ann Farrell and Senior Engineer Jim Belcher . Energy Housekeeping, Indoors/Outdoors, headed by Purchasing and Materials Manager Victoria Lamica . Process Control headed by Plant Operations Division Manager Doug Craig and Plant Maintenance Division Manager John Pearl Mr. Belcher stated that the Subcommittees will be reporting back to the Board on their continuing progress. There has been strong interest from employees in other departments on how they can contribute to energy conservation. Mr. Belcher stated that the Energy Committee will be going back to look at energy conservation ideas that were not cost effective when prices were lower but might be now. Mr. Belcher stated that there has been a lot going on with regard to natural gas prices since the last Board Meeting on February 1, 2001. On February 1, 2001, the index price for natural gas was $12.20 per decatherm. Today the index price is $13.50 per decatherm. In that time period the index price dropped to the $11.00 per decatherm range, but it has come back up. Staff will continue to monitor prices daily. The District has a contract for natural gas which expires on March 31, 2001. The District will need to buy natural gas for both the short- and long-term and staff will be looking at natural gas prices very that carefully. Mr. Belcher stated that with regard to electrical power, PG&E rates are still subsidized. The District Energy Committee is also looking at long- and short- 02 15 01 46 2) 02 15 term electrical strategies. Discussions have been opened with Calpine for siting a merchant plant at the District treatment plant site. In the initial discussions Calpine has indicated there are four issues: . Transmission . Ability to connect to power and natural gas capability . Availability of water (recycled water) . Permitting and siting issues Member Lucey stated that staff should explore the Calpine proposal, looking carefully at how this would benefit the District ratepayers. Mr. Belcher stated that to date there has been no invoice from NEO for landfill gas, nor has NEO provided an alternative proposal. Mr. Kenton L. Aim, Counsel for the District, stated that Acme has indicated the contract with the District has been assigned to NEO, but the assignment is within the sales document to NEO. Acme is concerned that at or near the end of March 2001 , if NEO does not fulfill some of the other contract terms and make a significant payment, Acme would have the right to immediately terminate the contract. If that were to occur, Acme would view selling the District landfill gas to be very much in their interest but Acme cannot deal with the District now absent getting permission from NEO because the contract is with NEO. Discussion followed with regard to the terms of the contract and whether the District should give 90-day notice terminating the contract. Mr. Aim suggested that the District wait until it is billed. If the District is billed under the old (higher) rate, the District could indicate that the rate is disputed. Given the volatility of the current energy market, it is probably better to be in a contract that has an approximate 30 percent discount in cost than not to have any contract at all. Mr. Aim stated that it may be more difficult to negotiate, and it would increase the uncertainty rather than decrease the uncertainty. Mr. Aim stated that is why to date the contract has not been terminated. Members Nejedly and Menesini endorsed the present course of action. Mr. Batts, General Manager, introduced Ms. Ann E. Farrell, Director of Engineering, who reviewed the District's current consultant selection process and reported on engineering consultant use over the last three years. Ms. Farrell stated that the District's current consultant procurement policy, put in place in 1988, is as follows: . For consultant contracts exceeding $100,000 . . . . . Request for proposal Review/screening of proposals Interviews before selection committee Ranking of consultants Negotiations with top candidate Ms. Farrell stated that in most cases this procedure has been followed. . For consultant contracts between $30,000 and $100,000 . Informal telephone solicitation or letter proposal 01 47 . Recommend consultant to Division Manager and Department Manager Ms. Farrell stated that this is in the interest of expediting contracts and effectively using staff's time. . For consultant contracts less than $30,000 . Recommend consultant to Division Manager without informal solicitation Ms. Farrell stated that there are exceptions to the current consultant procurement policy allowing selection without solicitation: . When a preliminary stage of a project gives specialized knowledge; or If the consultant is a highly recognized authority in a specialized area. . If consultant costs exceed $100,000, Department Manager and General Manager approval are required for any exception. Ms. Farrell reviewed the historical size of contracts and the number of consultants used during the last three years, indicating that there were approximately 140 projects totaling $9,597,000 and utilizing approximately 95 consultants. Of those, 25 projects totaling $6,750,000 utilizing 15 consultants were greater than $100,000 with an average size of $270,000. In the $30,000 to $100,000 range, there were 35 projects totaling $1,625,000 utilizing 27 consultants (eight were included above) with an average cost of $46,000. There were 80 projects of less than $30,000 with a total cost of $1,222,000 and an average size of $15,000 utilizing 60 consultants (exclusive of those above). Ms. Farrell stated that the dollar expenses are really in the larger contracts and that is where staff is focusing its efforts. Ms. Farrell stated that 95 different consultants were used when the consultants with multiple contracts are subtracted out. While the Board tends to see the same consultant names over and over for the larger projects, there are a large number of consultants doing work for the District. Ms. Farrell stated that types of consultant contracts include technical studies, master planning, facility planning, predesign/design/engineering and services during construction, construction inspection services, and other types of services including geotechnical, corrosion, materials testing, database/computer programming, and right of way. Ms. Farrell reviewed the individual consultant contracts over $100,000 during the last three years. Of those projects, Ms. Farrell stated that on the South Orinda Sewer Improvement Project staff used their prior experiential knowledge to select Montgomery Watson. Another example of where staff used an exception was selection of Larry Walker Associates for the Treatment Plant Capacity Evaluation. Ms. Farrell stated that in the majority of the other projects over $100,000 the formal process was followed. Ms. Farrell stated that there are a number of ways consultant contracts come to the Board. Ms. Farrell reviewed the projects greater than $100,000 and the consultants selected for each project and each phase (predesign, design, or all phases). Using the Pleasant Hill Relief Interceptor Phase IV Project as an example, Ms. Farrell stated that the Board may have gotten the impression the contract was just given to Montgomery Watson but that was not the case. Consultant selection for this project went through a formal process. In reviewing the current consultant procurement policy, the following conclusions were reached: 02 15 01 48 02 15 3) 4) . The current policy focuses staff time where the dollars are, in projects greater than $100,000. . The current policy allows flexibility for smaller projects and specialized services. . The current policy received accolades from benchmarking partners because it was streamlined, reduced bureaucracy, and saved staff time. Ms. Farrell stated that in doing this research she learned that the District has a good policy. Ms. Farrell recommended that the current consultant procurement policy be continued, and that we look critically at exceptions and continue to encourage broad participation by the consultant community in District projects. Discussion followed with regard to ways of encouraging broad participation by the consultant community, and the need at the management level for more rigorous screening. Ms. Farrell stated that it does keep the cost pressure on consultant costs if the District has more variety in its consultants and gets ideas from other sources. Ms. Farrell stated that staff may feel more comfortable with firms they have dealt with for years, but as a public agency the District has an obligation to maintain a balance in choosing firms. Mr. Batts, General Manager, stated that as part of keeping the Board updated on the District's public outreach efforts, a report was prepared and included in the Board's agenda packet. Mr. Batts introduced Ms. Harriette Heibel, Community Affairs Manager, who stated that each year she has come to the Board and given an update on public outreach activities. As an alternative to this once-a-year report, what may be more helpful to the Board is to give quarterly updates. Ms. Heibel reviewed the CCCSD Community Outreach Report for the period September-December 2000, covering Construction Project Outreach, CSO Customer Feedback Results, Household Hazardous Waste (HHW) Collection Facility Customer Visits, Web Site, Student Education, Plant Tours, Community Events, Workshops/Presentations, and Other Items such as the CCCSD Pipeline newsletter. Member Menesini asked to be advised of upcoming community events in Martinez and Pleasant Hill so he might attend. Member Menesini stated that he would like to see the instrument used for CSO Customer Feedback. Discussion followed with regard to the decline in the number of customers accessing the Web Site and the reduction in use of the HHW Collection Facility during winter months, the cost of the Sewer Squad Program and a request to view a Sewer Squad presentation, expansion of the Sewer Science Program to include additional schools, a brief description of the "Decision-Making and Pollution Prevention Strategies". presentation, and the suggestion that more outreach be done with community groups, service clubs, and Chambers of Commerce. Mr. Batts, General Manager, asked Ms. Harriette Heibel, Community Affairs Manager, to review suggested materials for inclusion in the next issue of the District's Pipeline newsletter, which will be mailed in a time frame to provide public notice on the Board's consideration of the Sewer Service Charge and other rates. Ms. Heibel stated that the District's rate story, and the notice of proposed Sewer Service Charge increase will be the main focus of the upcoming Pipeline newsletter. In addition, it is proposed that the publication feature articles on Household Hazardous Waste Collection Facility usage statistics, current construction projects, the Green Business Program, and 01 49 Less Toxic Home and Garden Workshops. Ms. Heibel requested Board input and ideas. Member Boneysteele suggested that it be highlighted prominently on the outside of the mailing that "important information concerning your rates is included inside." Member Menesini stated that the impact of energy cost increases should be included. Mr. Batts thanked the Board for their input and stated that the suggestions will be incorporated. 5) Mr. Batts, General Manager, announced that the District intends to advertise for the second Phase of the Lafayette Sewer Renovation Project, DP 5166. This project consists of 4,500 feet of 8-inch and 1,120 feet of 12-inch sewer pipe to be installed by open cut and trenchless methods. These particular sewer improvements have been identified by the District as critical line segments and are being pursued at this time to coordinate with the City of Lafayette's 2001 Capital Improvement Program. The estimated construction cost is $1,125,000. A public workshop and community meeting with impacted residents is scheduled for Wednesday, February 28, 2001 at 7:00 p.m. at the Lafayette Community Center. Member Nejedly asked that staff place door hangers on the impacted residents doors to advise them of the community meeting and to notify them that the District is planning a construction project in their area. Member Lucey suggested that a preview of the presentations for the community meeting could be helpful. Members Nejedly and Lucey and President Hockett indicated that they would be pleased to participate in that. 6) Mr. Batts, General Manager, announced that District staff has tentatively scheduled a public workshop on the closure of Basin A South for late March at the District. The Department of Toxic Substances Control will be available to answer questions, but the District will be conducting the workshop. There will also be a briefing at the Pacheco Town Council meeting on Wednesday, March 14, 2001. 7) Mr. Batts, General Manager, stated that the Tentative Order on re-issuing the District's National Pollutant Discharge Elimination System (NPDES) permit has been received. The Tentative Order contains the proposed effluent and receiving water limitations, self-monitoring requirements, prohibitions, and special provisions for the District's discharge. Written comments are to be submitted by February 27, 2001. The Regional Water Quality Control Board (RWQCB) plans to consider adoption of the Tentative Order at their March 21, 2001 Board meeting. District staff and RWQCB staff have worked closely to fashion a permit that is protective of the environment, while not placing the District in inordinate jeopardy of violating the permit. The Tentative Order provides a clear path for the District to increase the treatment plant capacity to 53.8 MGD, and it includes bacteriological requirements of benefit to the District. However, the new permit mandates that the District participate in a site-specific objective standard setting process for cyanide, participate and partly fund the development of Total Maximum Daily Load (TMDL)/waste load allocations for 303(d) listed pollutants, and increases the monitoring requirem,ents and testing sensitivity for dioxin, furan, and mercury. The Tentative Order also requires that the District's contingency plan and O&M procedures be reviewed and updated, and that the Pollution Prevention Program continue to be implemented and improved to reduce pollutant loadings on the treatment plant and receiving waters. 02 15 01 50 8) 9) 02 15 Mr. Batts stated that while the Tentative Order establishes mass limits for 303(d) listed pollutants (as in the Tosco permit), the District is likely to meet those limits during the term of this permit; however, if the same method is used to establish mass limits for our next permit in 2006 (and RWQCB staff has indicated that is their intent), the District will be in serious jeopardy of violating the 2006 permit. For this and other reasons, the District may want to appeal this Tentative Order. Currently about 90 percent of the new permits being issued have been appealed. If the District chooses to file an appeal, it must be filed within 30 days of the adoption of the Tentative Order. The appeal would be referred to the State Water Resources Control Board, who would hear the appeal. More information on this process and the permit will be provided to the Board in March. Mr. Kenton L. Aim, Counsel for the District, stated that the permit does contain provisions from the Tosco permit. The District should preserve its appeal on those areas that may come out of the other appeals that may be favorable for the District. The District's Tentative Order contains provisions that others are appealing. Member Lucey stated that the District is viewed as one of the largest and one of the best run publicly owned treatment works. If the District does not appeal that will tell everyone that Central Contra Costa Sanitary District is able to meet all the provisions and so everyone else should be able to as well. Mr. James M. Kelly, Director of Plant Operations, stated that the Regional Board and staff may change the District's Tentative Order up until the actual day of the hearing. Mr. Kelly stated that he does not yet know what the final provisions will be, and he would recommend that the District wait until the Final Order is received. When the District files its letter on February 27, 2001, it will contain all the information and appropriate legal arguments for permit provisions such as those in the Tosco appeal. Mr. Batts, General Manager, announced that the District will be hosting a booth at the Walnut Creek Chamber of Commerce TradeFair on Thursday, February 22, 2001 from 5:00 p.m. to 7:00 p.m. at Blake's at Boundary Oaks in Walnut Creek. The theme is Teachers' Appreciation and the District hopes to get word out about our various student education programs to teachers at this event. The TradeFair is free to visitors and the Board is welcome to attend. Mr. Batts, General Manager, stated that the storm last weekend dropped from two to five inches of rain on the District's service area. The peak flow at the plant was 100 MGD; only two to four million gallons were stored in the ponds for a day before it was drained and treated. There were two minor problems, but no operating problems or violations resulted. First a Technician was called out to restart one of the final effluent pumps at the plant to discharge treated effluents. Second, there was also one call out at the Martinez Pumping Station because the wet weather pumps did not automatically start. The on-call Pumping Stations Operator responded and returned the pumps to service. 10) Mr. Batts, General Manager, distributed copies of the "Our Water Our World News" produced and published by the stormwater and wastewater agencies in the Bay Area that are implementing the District's Integrated Pest Management (IPM) partnership with stores and master gardeners. The target audience is the store employees and master gardeners as a way of providing continuing information on the IPM partnership, pesticides, and water quality. The plan is to publish two issues per year. If"';!" " ~J J~ b. c. d. 51 DISTRICT COUNSEL None SECRETARY OF THE DISTRICT None BOARD MEMBERS 1 ) Member Menesini stated that election of the Special Districts' representative to the Local Agency Formation Commission (LAFCO) is coming up. Mr. Dwight Meadows, Board Member of Regional Reclamation District, and Mr. Doug Hardcastle, newly elected Iron house Sanitary District Board Member, are running for the seat. Member Menesini asked if the Board had any input or guidance. Following discussion, it was the consensus of the Board, that the Central Contra Costa Sanitary District vote be cast for Mr. Dwight Meadows. 2) Member Menesini announced that Dr. Gary Fellers, United States Geological Survey Research Biologist, will be discussing Animals Big and Small: How to Count Them, at the February 26, 2001 Environmental Alliance Discussion Series at noon at the John Muir Historic Home in Martinez. Anyone interested is invited to attend. 3) Member Menesini recognized Associate Engineer Gail Chesler, Source Control Program Superintendent Tim Potter, Source Control Inspector II Beverly Baclig, Pollution Prevention Program Administrator Bart Brandenburg, and Director of Collection System Operations John Larson for their participation in the 28th Annual California Water Environment Association (CWEA) Industrial and Hazardous Waste Conference in Oakland, California, earlier this month. BREAK At 3:37 p.m., President Hockett declared a recess, reconvening at the hour of 3:57 p.m. with all parties present as previously designated. a. 6. ENGINEERING AUTHORIZE THE SUBSTITUTION OF GREEN GROWTH INDUSTRIES. THE LISTED SUBCONTRACTOR. WITH NIMCO LANDSCAPE SERVICES. A NEW SUBCONTRACTOR. FOR LANDSCAPE AND IRRIGATION WORK ON THE LABORATORY IMPROVEMENTS PROJECT. DP 7172 Following explanation by Mr. Batts, General Manager, it was moved by Member Nejedly and seconded by Member Menesini, that authorization be given for substitution of the listed subcontractor, Green Growth Industries, with a new subcontractor, Nimco Landscape Services, for landscape and irrigation work on the Laboratory Improvements Project, DP 7172. The being no objection, the motion was approved with Member Lucey abstaining because he is a labor arbitrator. b. CONSIDER FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON ENTRADA VERDE IN ALAMO FOR INSTALLATION OF SEWER IMPROVEMENTS: ADOPT RESOLUTIONS OF INTENTION TO CREATE ENTRADA VERDE CAD NO. 2001-1. FOR APPROVAL OF THE BOUNDARY. AND REQUESTING CONSENT OF CONTRA COSTA COUNTY FOR CCCSD TO CONDUCT PROCEEDINGS FOR THE CAD Mr. Batts, General Manager, introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that the Entrada Verde CAD is the first CAD to be formed under the new CAD Policy adopted by the Board at the last Board Meeting. Mr. Swanson 02 15 01 52 reviewed the Board decision points relating to the Contractual Assessment District (CAD) process. First the Board initiates formation of the CAD; then a public hearing is conducted to consider and approve the Engineer's Report and assessment and order improvement; and finally after construction has been completed and all the bills have been received, the final assessments are confirmed and levied. The proposed Entrada Verde CAD is at the first decision point. The Entrada Verde CAD is located between Livorna Road and Stone Valley Road in Alamo. The Entrada Verde CAD is close to the Laurenita Way CAD which is approximately 80 percent complete in terms of construction. Property owners on Entrada Verde in Alamo have requested that the District form a contractual assessment district for the purpose of financing and constructing a public sewer system to serve their properties. The Entrada Verde CAD meets all the CAD formation criteria. Twenty-three properties could potentially be served. Twenty-one properties have one dwelling, one property has two dwellings, and one property is vacant. To date, 20 owners have expressed an interest. The Entrada Verde CAD consists of 1,225 feet of 8-inch sewer, one trunk manhole, and three manholes. The estimated cost is $180,000. The lump sum cost per participant is $9,000 or $1,295 annually for ten years. It was moved by Member Boneysteele and seconded by Member Menesini, that the formation of a contractual assessment district consisting of 23 properties on Entrada Verde be authorized; that Resolution No. 2001-036, a resolution of intention to create Entrada Verde CAD No. 2001-1 for the purpose of installing sewer improvements, be adopted; that Resolution No. 2001-037 be adopted, approving the boundary of the assessment district; and that Resolution No. 2001-038 be adopted, requesting consent from Contra Costa County for CCCSD to conduct proceedings for Entrada Verde CAD No. 2001-1. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Menesini, Nejedly, Lucey, Hockett None None 7. CORRESPONDENCE a. NOTE RECEIPT OF LETTER DATED JANUARY 31. 2001 FROM MR. TONY GRANZOTTO. OF DANVILLE. CONCERNING STAFFING OF THE COLLECTION SYSTEM OPERATIONS DEPARTMENT: RECEIVE AND CONSIDER DRAFT RESPONSE Receipt of the letter dated January 31, 2001 from Mr. Tony Granzotto, of Danville, concerning staffing of the Collection System Operations Department, was noted and the draft response was approved by consensus of the Board. It was noted that Member Lucey indicated that he does not think that the District must respond but he had no objection to the draft response. 8. APPROVAL OF MINUTES a. MINUTES OF ADJOURNED REGULAR MEETING OF JANUARY 11. 2001 b. MINUTES OF ADJOURNED REGULAR MEETING OF JANUARY 25. 2001 It was moved by Member Menesini and seconded by Member Boneysteele, that the minutes of the Adjourned Regular Meetings of January 11, 2001 and January 25, 2001, be approved as presented. There being no objection, the motion was unanimously approved. 02 15 01 53 9. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED FËBRUARY 15. 2001 Member Nejedly, Chair of the Budget and Finance Committee, stated that he and Member Lucey reviewed the expenditures and found them to be satisfactory. Member Nejedly stated that the Budget and Finance Committee would suggest that the meeting to review expenditures be moved to the Monday afternoon prior to the Board Meeting so that the meeting would not be limited by the hour time period currently allowed for review of expenditures, and to allow sufficient time for staff to secure answers to questions should any arise that cannot be answered in the meeting. It was moved by Member Nejedly and seconded by Member Lucey, that Self Insurance Check Nos. 101693-101697, Running Expense Check Nos. 130090-130350, Sewer Construction Check Nos. 22997-23029, Payroll Manual Check Nos. 48750-48759, and Payroll Regular Check Nos. 53502-53540, be approved as recommended. There being no objection, the motion was unanimously approved. 10. BUDGET AND FINANCE a. RECEIVE DECEMBER 2000 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reported that 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 5.6 percent to 6.77 percent. The latest interest rate as of December 2000 was 5.9 percent. The average yield of the District's LAIF account through January 2001 was 6.5 percent. President Hockett declared that the December 2000 Financial Statements and report of temporary investments were duly received. b. RECEIVE THE 2000-2001 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31. 2000 Ms. Deborah Ratcliff, Controller, stated that she will review the financial position of the District at the end of the first six months of the 2000-2001 fiscal year and discuss projections for the full fiscal year. Ms. Ratcliff reviewed the results of operations and maintenance for the six months ended December 31, 2000, reporting that revenues of $18,395,000 were $75,467 greater than budget, representing a 0.4 percent favorable variance. For the six months ended December 31, 2000, actual expenditures of $17,575,000 were $482,000 less than budget, representing a 2.67 percent favorable variance. At December 31, 2000, revenue over expenditure is $557,477, well ahead of budget. ~- Ms. Ratcliff reported that for the full fiscal year, revenues are projected to be $36,973,000 or $600,900 greater than budget, representing a 1.7 percent favorable variance. Expenses are projected to be $37,246,000 or $1.4 million greater than budget, representing a 3.9 percent unfavorable variance. This will cut into reserves by about $300,000, instead of adding $500,000 to reserves as budgeted. At June 30, 2001, revenue over expense results in a projected budget deficit of $784,096. Ms. Ratcliff reviewed the significant expense variances projected at June 30, 2001, noting favorable variances in Salaries and Wages of approximately $200,000 due to the large number of retirements and in Retirement rates of approximately $400,000 due to the Retirement Board continuing to subsidize employer rates. Ms. Ratcliff stated that there are unfavorable variances in Utilities of approximately $1.5 million due to the increase in the price for natural gas, landfill gas, and electricity; in Repairs and Maintenance of approximately $337,000 due to unexpected repairs in the treatment plant; and in Outside Services of approximately $135,000 due to higher than expected number of employee recruitments, temporary help, and unbudgeted Title V (air permit) compliance testing. Ms. Ratcliff provided information on historical trends for the last three fiscal years, comparing six-month actual and budget to the full year actual and budget. Ms. Ratcliff 02 15 01 54 stated that typically at the six-month point we are ahead of budget because of delayed billings and putting things off until the second half of the fiscal year, but we typically catch up to budget by the end of the fiscal year. In 1997-1998, there was a cut into reserves of $286,000; in 1998-1999, there was a cut into reserves of $1,509,000; and in 1999-2000, there was a cut into reserves of $1,799,000. President Hockett thanked Ms. Ratcliff for her report and declared that the 2000-2001 Operations and Maintenance Budget review for the six months ended December 31, 2000 was duly received. c. 2000-2001 CAPITAL IMPROVEMENT BUDGET MID YEAR STATUS REPORT Ms. Ann E. Farrell, Director of Engineering, presented the 2000-2001 Capital Improvement Budget (CIB) Mid Year Status Report. Ms. Farrell stated that CIB expenditures (excluding Dougherty) at June 30, 2001, are projected to be $22 million rather than $24,875,000 as budgeted. Ms. Farrell reviewed the major Collection System Program expenditures (excluding Dougherty) which are projected to be $8,439,000 at June 30, 2001, approximately $1 million less than budget. Major Treatment Plant Program expenditures are projected to be $8,117,000 at June 30,2001, approximately $1.7 million less than budget. Ms. Farrell stated that this is because the Laboratory Improvements Project is somewhat behind the schedule that was originally projected. Major Recycled Water Program expenditures are projected to be $1,762,000 at June 30, 2001. Major General Improvements Program expenditures of $929,000 at June 30, 2001 is very close to budget but there are several smaller projects in this program that have been delayed. Ms. Farrell stated that all in all, we are tracking very close to the projections if Dougherty is excluded. Ms. Farrell reviewed the impacts of the shift in funds between Operations and Maintenance (O&M) and Capital made last year. While the O&M Budget is almost balanced, the District is looking at a large deficit in the Capital Improvement Budget. As stated earlier, the net change in O&M reserves is a decrease of $273,000 rather than an increase of $511,000 for projected O&M funds available at July 1, 2001 of $3,653,000. The Capital reserve will decease by approximately $6 million from $47,513,000 to $41,656,000 projected Capital funds available at July 1, 2001. President Hockett thanked Ms. Farrell and declared that the 2000-2001 Capital Improvement Budget Mid Year Status Report was duly received. d. FURTHER DISCUSSION OF RATE SETTING ISSUES/PROVIDE DIRECTION TO STAFF CONCERNING PUBLIC NOTICE DRAFT LANGUAGE Mr. Batts, General Manager, distributed draft language for the public notice of proposed increase in Sewer Service Charges and stated that Board input on the draft language will be requested at the next Board meeting. Mr. Batts stated that at a previous meeting, the Board requested information on West County Wastewater District (WCWD) rates. Mr. Batts distributed and reviewed pie charts from WCWD's Two Year Comprehensive Operating and Capital Budget for fiscal years 1999-2000 and 2000-2001, and compared those with Central Contra Costa Sanitary District (CCCSD) 2000-2001 O&M expenses and revenues. Mr. Batts stated that in an effort to normalize the costs of the two agencies, several issues were taken into account. WCWD serves approximately 90,000 people and CCCSD serves approximately 420,000 people; WCWD average flow is 7 MGD and CCCSD average flow is 40 MGD; the WCWD collection system is approximately 330 miles and the CCCSD collection system is approximately 1500 miles. Mr. Batts stated that these are roughly a 5 to 1 ratio. Mr. Batts reviewed a chart in which the data from WCWD was normalized to compare it to the CCCSD data. To normalize the data, 39.6 MGD was divided by 7.12 MGD for a multiplier of 5.56. That factor was then applied to the WCWD data for comparison purposes, resulting in WCWD normalized costs of $31,432,834 compared to CCCSD costs of $35,861,186 for a CCCSD unfavorable variance of $4,428,352. Mr. Batts stated that there are economies of scale with larger plants like CCCSD, which can be seen in areas like total staff. There are other differences as well such as CCCSD's Household 02 15 01 55 Hazardous Waste Collection Facility, debt service, and more complex treatment and solids handling processes. WCWD has paced its Sewer Use Charge with the Consumer Price Index (CPO, while CCCSD's Sewer Sérvlbê êhârge remained constant for six years until last year. While this comparison is very difficult to make, it would appear that WCWD has a 10 percent subsidy in its Sewer Service Charge compared to CCCSD, and also uses interest income from a $20 million plus reserve. If the multiplier factor was applied to the reserve balance, then CCCSD would receive interest income from a $120 million reserve. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION a. AUTHORIZE THE GENERAL MANAGER TO CONTINUE WITH THE EMERGENCY CONSTRUCTION CONTRACT TO MOUNTAIN CASCADE. INC. FOR THE REPAIR OF THE RECYCLED WATER PIPELINE IN BUCHANAN FIELD GOLF COURSE Mr. Batts, General Manager, stated that on February 2, 2001, a major leak was discovered in the 18-inch recycled water pipeline located in the Buchanan Field Golf Course. District personnel and contractors were immediately mobilized to locate, investigate, and repair the leak. An emergency condition was declared and the work is being performed under that emergency declaration because the leak threatens the A-Line Interceptor, the District's main interceptor sewer which is adjacent to the recycled water pipeline. When an emergency situation has been declared by the General Manager, the Board must review and approve emergency repair work greater than $25,000 at each Board meeting until it is completed. Mr. Batts introduced Mr. Jade Sullivan, Assistant Engineer, who stated that a visible leak was discovered on February 2, 2001 at the Buchanan Field Golf Course. The General Manager declared an emergency condition. Currently Mountain Cascade, Inc. is on site under the supervision of Senior Engineer Henry Thom. Mr. Sullivan reviewed the chronology of events. On February 2, 2001, Collection System Operations Department and Recycled Water staff were on site to assess the leak and isolate the pipeline. Recycled water customers were informed of the situation and when they might expect the system to be back on line. On February 5, the first contractor, D.R. Lemings, began investigative excavation. On February 6, the first contractor had excavated to 16 feet and was having trouble maintaining the safety of the A-Line pipe. It was at this point that the General Manager declared an emergency condition in accordance with Resolution No. 96- 107, which delegates authority to the General Manager to act under emergency conditions. Resolution No. 96-107 and the Public Contract Code define an emergency condition as fa sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property or essential services." Mr. Sullivan showed slides and described the emergency construction on Buchanan Field Golf Course. On February 7, the second contractor, Mountain Cascade, Inc., assessed the site. On February 8, a bridge was built to get large equipment across a small creek. The bridge will be left in place after the emergency repair as the request of Buchanan Field Golf Course. There was no construction from February 9 through 12, due to a rain and snow storm. On February 13 and 14, Mountain Cascade excavated to a 16-foot depth and tested the pipeline for leak location. Mr. Sullivan showed slides of the emergency construction. Mr. Sullivan stated that after being on the site and putting pressure on the pipeline, it would appear that it may be necessary to line the 290-foot portion of the pipeline under the freeway to ensure the leak is fixed. -- In response to questions from Member Lucey, Mr. Sullivan stated that Mountain Cascade was used because they were available and mobilized in the area. They were on site the next day and District staff has been happy with the work they have performed. In the discussion that followed it was noted that the recycled water pipeline has only been in place for seven years and there have been at least two other leaks. Staff was asked a number of questions, such as who performed the initial construction, who planned the project, the name of the design engineer, who provided the pipe, who did the soils engineering, and whether there are any warranties or obligations from the contractors, pipe suppliers, or others. Staff was also asked to report to the Board on the proposed repair method and technology. 02 15 01 56 It was moved by Member Boneysteele and seconded by Member Menesini, that the General Manager be authorized to continue with the emergency construction contract with Mountain Cascade, Inc. for extra costs associat.ed with location and repair of the recycled water line leak encountered in the Buchanan Field Golf Course. Member Nejedly proposed a modification to the motion, that no repairs be made to the recycled water pipe until the matter is brought back to the Board. Discussion followed with regard to the emergency nature of the situation and the need to proceed quickly. Member Nejedly agreed that the pipe should be repaired as soon as possible, but he expressed concern that there have been three leaks in seven years. Member Nejedly stated that he would vote for the original motion, but stressed that the situation must be carefully investigated and the pipe adequately repaired. President Hockett called for a vote on the above motion that the General Manager be authorized to continue with the emergency construction contract with Mountain Cascade, Inc. for extra costs associated with location and repair of the recycled water line leak encountered in the Buchanan Field Golf Course. The motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Boneysteele, Menesini, Nejedly, Lucey, Hockett None None Mr. Kenton L. Aim, Counsel for the District, stated that the action taken by the Board today will not affect whether the District has recourse with the contractor or designer or anyone else, but the Board has heightened attention to the fact that appropriate forensic work should be done. 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 13. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at the hour of 5:30 p.m. ~,£Uh President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 02 15 01