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HomeMy WebLinkAboutBOARD MINUTES 05-10-01 113 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 10, 2001 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on May 10, 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 EMPLOYEES . GERALD R. DAVIS. INTERIM DIRECTOR OF ADMINISTRA TJON . ALAN SIEGLE. ENGINEERING ASSISTANT III . GLEN BRADLEY. UTILITY WORKER . P.J. TURNHAM. MECHANICAL MAINTENANCE TECHNICIAN TRAINEE Mr. Gerald R. Davis, Interim Director of Administration, Mr. Alan Siegle, Engineering Assistant III, and Mr. Glen Bradley, Utility Worker, were introduced and welcomed to the District by President Hockett and the Board of Directors. Ms. P. J. Turnham, Mechanical Maintenance Technician Trainee, was congratulated on her acceptance into the trainee position. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF SAFETY SUGGESTION OF THE YEAR FOR 2000 TO: . TIFTON GANTT. MAINTENANCE CREW LEADER. COLLECTION SYSTEM OPERATIONS DEPARTMENT . DAVID STROUP. MACHINIST. PLANT OPERATIONS DEPARTMENT Mr. Charles W. Batts, General Manager, stated that at this time each year, the District Safety Program publicly recognizes the top safety suggestion of the year. Mr. Batts introduced Mr. David Clovis, Safety and Risk Manager, who stated that this year the suggestions submitted by Mr. Tifton Gantt and Mr. David Stroup were both selected to receive the Annual Safety Suggestion Award. Mr. David Stroup, Machinist in the Plant Operations Department, suggested that gas springs be installed on the Ultraviolet (UV) disinfection channel cover doors that are heavy and difficult to open and close. Mr. Tifton Gantt, Maintenance Crew Leader in the Collection System Operations Department, suggested that there is a need for flaggers, as the first line of defense for a construction crew, to have an audible device (a whistle or hand-held air horn) that can be heard over equipment noise to alert workers of a car that isn't stopping or that has penetrated cones and construction site. 05 10 01 114 President Hockett presented the Safety Suggestion of the Year Award for 2000 to Mr. David Stroup, Machinist, and to Mr. Tifton Gantt, Maintenance Crew Leader, and commended Messrs. Stroup and Gantt on their attention to safety. 4. CONSENT CALENDAR Following discussion of corrosion protection measures for Item a., it was moved by Member Menesini and seconded by Member Nejedly, that the Consent Calendar, consisting of Items a. through e., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. The contract work for the Mixed-Liquor Aeration Air Piping Replacement Project, DP 7183A, was accepted and filing of the Notice of Completion was authorized. a. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None b. The contract work for the Recycled Water Emergency Repair Project was accepted and the filing of the Notice of Completion was authorized. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None May 24, 2001 at 2:00 p.m. was established as the date and time for a public hearing to receive comments on the draft 2001-2002 and 2002-2003 Capital Improvement Budget and 2001 Ten-Year Capital Improvement Plan. c. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None Resolution No. 2001-055 was adopted, establishing June 21, 2001 at 2:00 p.m. as the date and time for a public hearing regarding Corwin Drive/La Sonoma/Los Alamos Contractual Assessment District No. 2000-4, pursuant to California Constitution, Article XIII D, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24. d. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: 05 10 01 Menesini, Nejedly, Lucey, Boneysteele, Hockett None None a. 115 e. Resolution No. 2001-056 was adopted, establishing June 21, 2001 at 2:00 p.m. as the date and time for a public hearing regarding Entrada Verde Contractual Assessment District No. 2001-1, pursuant to California Constitution, Article XIII D, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Nejedly, Lucey, Boneysteele, Hockett None None 5. HEARINGS CONTINUE THE PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO RETITLE AND AMEND CHAPTER 6.12 OF THE DISTRICT CODE REGARDING THE CAPACITY FEE PROGRAM. TO MAY 14. 2001 AT 2:00 P.M. Mr. Batts, General Manager, stated that staff would request that the public hearing to receive comments on the District Capacity Fee Program be held over to the next Board Meeting to give staff and District Counsel further time to review the proposed changes in the District Code and ordinance in light of the City of Concord's request to consider the extent of their capital contribution requirements. A full discussion of the issues relating to the City of Concord is scheduled as a General Manager's Report item later in the agenda but could be taken out of order at this time since Mr. Ed James, Concord City Manager, and Mr. Mike Vogan, Concord Public Works Director, are present. At this time, President Hockett departed from the order of the agenda to take Item 7.a .3), General Manager's Report. a. 7. REPORTS GENERAL MANAGER 3) Mr. Batts, General Manager, stated that the District reached agreement with the City of Concord in 1974 to take over treatment responsibility for their wastewater flows. This has been a relationship that has benefitted both parties, and has led to the District and Concord working together on other issues such as source control inspections and collection of household hazardous waste. This year there were a number of issues that have impacted Concord and its rate structure. Mr. Batts introduced Ms. Ann Farrell, Director of Engineering, who reviewed the history of the City of Concord contract. Initially, Concord owned and operated its own treatment plant; and in 1960, contracted with the District for treatment of excess flows. A new agreement was reached September 10, 1974, by which the District would treat all Concord flows at the request of the Environmental Protection Agency (EPA) during the grant period. That September 10, 1974 agreement between the District and Concord was amended in 1976, 1982, 1985, and 1987. Originally, Operations and Maintenance cost sharing was based on flow and strength, and capital cost sharing was based on assessed valuation. The use of assessed property values was changed with the passage of Proposition 13. The basic provisions of the 1985 amendment were that all cost sharing would be based on flow and strength, O&M costs would be prepaid equal to half year and reconciled at year end, and capital costs would be paid at the end of the year with interest. The current 25- year agreement self-renewed in 1999 for 25 years. Ms. Farrell reviewed the annual Sewer Service Charge history for the District and Concord from 1974-1975 through 2000-2001. The annual Sewer Service Charge ranged from$72 to the current $200 for the District and from $54 to the present $180 for Concord. In the late 1980's the District's annual Sewer Service 05 10 01 116 05 10 Charge was significantly less than Concord's. The District Sewer Service Charge was increased in 1991 with the loss of a portion of the ad valorem taxes, and this year's charge is $20 higher than Concord's. In 2001-2002 a $24 increase is proposed in the District's annual Sewer Service Charge and Concord is considering an $18 increase. With regard to long-term issues with Concord, Ms. Farrell stated that there have been a number of issues concerning timeliness of cost data. At the same time the District is determining its budget for the coming year, and Concord is determining its costs, so the District cannot give Concord final accurate numbers for the coming year's budget. There are variations in the District's capital spending and Concord has raised an issue on that topic. Ms. Farrell reviewed the history of actual billings for Concord's capital contributions from 1985-1986 through 1999-2000, showing the fluctuations. Finally, Concord has raised equity issues. What is meant by "equity"? Is the agreement between Concord and the District a partnership or a contract? What are the District's and Concord's responsibilities to each other under this agreement? In December 1998, a cost sharing analysis was done by Concord and a number of "small" issues were identified. District staff agrees with the recommendations to eliminate the District's newsletter charge and change O&M billing to the same method as capital. Discussions are still going on with regard to reviewing the IKON reproduction charges, and elimination of tax collection charge. Concord withdrew the recommendations to eliminate some retiree benefit charges and move renewal/replacement costs from capital to O&M. "Larger" issues from the December 1998 cost sharing analysis were also identified. Because Concord's system is older it might be thought that there would be more infiltration and inflow but actually there is less. Should an adjustment to related capital charges be made? Should Concord's share of capacity expansion related capital costs be capped since the Concord percentage of flow is decreasing with time? More recent Concord issues include: . Impact of cost sharing of Animal Control Facility purchase. The District took advantage of a buying opportunity from the County. It was unexpected and unbudgeted. Concord's portion of the cost is approximately $1 million. . Use of District January 2001 Board Workshop data for Concord ratesetting. The planning document used in the January 2001 Board Workshop was circulated to Concord. Concord used that document and as a result Concord's O&M costs for the current year are understated by $800,000; O&M costs for 2001-2002 are understated by $1 million; and capital costs for 2001-2002 are understated by $230,000. The Proposition 218 public notice of a proposed $1 8 rate increase issued by Concord understates revenue needs. While this was not something that was anyone's fault, by giving preliminary information to Concord, and by Concord using it in their rate determination process, Concord has been placed in an awkward position. Ms. Farrell reviewed the projections and significant differences in 1999 Capital Improvement Plan compared to the 2001 Capital Improvement Plan. Ms. Farrell stated that there are several issues that District staff believes can be resolved; and with the Board's permission, staff will work with Concord. District staff recommends installment payments be authorized for Concord's cost share of the Animal Control Facility. District staff is implementing a formal process for requesting and transmitting cost information. 01 117 With regard to unresolved issues, the City of Concord is looking for some cost relief based on the "larger" issues identified in the December 1998 cost sharing analysis. Distriét records have shown Concord 1/1 to be less than District 1/1 as a whole. Any cost adjustment regarding 1/1 effects only the head works and facilities sized for peak wet weather flows. District staff can work with Concord to develop an approach for addressing 1/1 and bring that back to the Board in the future. With regard to the Concord's decreasing flow percentage, Ms. Farrell stated that for the last 15 years, Concord has averaged 29.7 percent of treatment plant flow. At buildout in 2035, Concord is projected to be 26.5 percent of flow. Concord has raised the question as to whether its capital portion of long-term facilities at 29.7 percent is equitable. Should Concord receive credit for a percentage of facilities they have contributed to but will not use in the future? The issue is not specifically addressed in the contract. The contract does provide for either party to submit issues for resolution, and that is why we are here today. It is suggested that the Concord equity issue be evaluated and a report made back to the District Board. If all agree there is an equity issue, development of options for adjustment would proceed. Some ideas discussed to address the equity issue, if it is agreed there is an equity issue, could be: . Total capital adjustment that could be $2 to 4 million . Discounted contributions to capital projects until equity is reached . Credit portion of connection fee based on current valuation of assets to Concord In summary, Ms. Farrell requested that the Board authorize staff to negotiate installment payments with Concord for their share of the Animal Control Facility, that the potential equity issue be examined, and that staff be directed to work with Concord to develop options for Board consideration. Mr. Mike Vogan, Public Works Director of the City of Concord, addressed the Board. Mr. Vogan stated that he is in charge of the sewer enterprise. That budget is in extreme crisis for a number of reasons. One reason is the District's unbudgeted purchase of the Animal Control Facility, which is $1 million cost to the City. Mr. Vogan stated that in putting together this year's budget, he used data he got from District staff and the data used at the January 25, 2001 District Boàrd workshop. There were large errors in that data as far as Concord's proposed contribution. Mr. Vogan stated that he recognizes that those were preliminary numbers, but it was necessary for him to start his budgeting process in the December/January time frame. Based on those numbers, an $18 increase in the Concord Sewer Service Charge was proposed to fund Concord's share of the District process and Concord's own operations. Concord has an estimated $60 million in expenditures over the next 20 years for maintenance of its sewers. A $12 million bond issue was intended to take care of the first stage of that work. Based on the current numbers from the District, a $ 24 increase in the Concord Sewer Service Charge is needed. The Concord budget has been changed and maintenance projects moved out as far as three years to try to balance the budget and that does not include payment for the Animal Control Facility. Mr. Vogan stated that Concord's budget is in crisis and if anything unexpected happens, Concord would not be able to pay for it. Mr. Vogan stated that a few years ago, a cost analysis was done to be sure what Concord was paying the District was fair and equitable. Some small issues were identified and are being corrected. One of the biggest items that came out of that cost analysis was the 1/1 mentioned earlier. Concord also believes there should be a more equitable way to pay into future 05 10 01 118 05 10 facilities than by waiting until it is built out when Concord's flow rate is a lower percentage. Calculations could be done using past and future flow rates and the life cycle of the facilities built. Another way is a credit based on the present value of the assets as a credit against connection charges since the District is considering raising those based on the present value of the assets. Mr. Vogan stated that Concord will submit a formal letter to the District asking that those issues be reviewed and resolved. Mr. Vogan stated that he believes Concord has been overpaying for those facilities based on the flow rate. Concord and the District need to come to an equitable agreement on past, present, and future flow rates. Mr. Ed James, Concord City Manager, stated that Concord appreciates the work the District does. Mr. James stated that in the past he has had responsibility for water pollution control plants and he understands the complexity of the operation and the planning difficulties. Concord is looking at having to delay some very important rehabilitation projects. Concord did not know there would be a change in the District's Five-Year Capital Improvement Plan. Mr. James suggested that the District undertake a 20- year planning effort and amortization of equipment. Concord is trying to work with the District to resolve these issues. Concord will not walk away from this. Mr. James asked that the Board direct staff to do longer range planning so there are no surprises. Mr. James stated that we need to resolve these issues quickly and move on. Mr. James asked that the Board delay some of the capital expenditures that would be attributed to Concord so that Concord does not have to delay its rehabilitation project by three years. Discussion followed with regard to contract provisions relating to cost sharing based on flow for both O&M and capital expenditures, concerns with taking a portion of the connection fees, infiltration and inflow, the need for buffer property, and the need for staff to meet with Concord representatives as soon as possible to try to resolve this issue. Member Boneysteele stated that he is one of the few people still at the District that participated in the negotiation of this contract. The present situation cannot be separated from the historical context. This plant was one of the first plants financed through a grant from the Environmental Protection Agency (EPA) under the Clean Water Act. The EPA came and looked at the situation when the District applied for the grant. The EPA said they would not pay for new treatment plants for both the District and for the City of Concord. The EPA informed both the District and the City of Concord that we must reach an arrangement. The District's preferred solution was that Concord become part of the District and then these issues would not come up. Concord did not want to annex to this District so a contract was proposed. All of this was 30 years ago. Since that time, except for the incident over metering of Concord's flow, it has been a very harmonious arrangement until just a few days ago. Member Boneysteele requested that the history be reviewed to see what would have happened if Concord had annexed to the District, and bring it up to date to see if Concord has benefitted or been penalized from that decision they made. Perhaps that decision can be unraveled and the District and Concord can start on a new basis so these issues will not come up again in the future. Member Boneysteele stated that he does not know whether that would be Concord joining the District or some other arrangement. As Mr. Vogan mentioned, Concord has maintenance issues. The residents in other areas of the District may not be happy about financing that; but the decision to use a contract was Concord's, not the District's. Member Boneysteele stated that mediation can be a contentious process and we all want a fair resolution of this issue. Member Boneysteele asked that the District files, Concord files, and Contra Costa Times newspaper files be researched to find any historical information that may assist in resolving this issue. 01 119 Mr. Batts indicated that he and Director of Engineering Ann Farrell will be meeting with Concord staff tomorrow. Hopefully a quick resolution will be reached. Staff will keèp theaóard informed. Mr. Vogan stated that Concord looks at this as a partnership with the District and not a contract. If this matter could be resolved by July 1, 2001 that would be satisfactory. Member Boneysteele cautioned that the contract not be disregarded nor should hasty action be taken. The Board must conscientiously look out for all the people of the District. Mr. Batts agreed that we are all working toward a positive resolution of this. At this time, President Hockett reverted to the order of the agenda. 5. HEARINGS a. CONTINUE THE PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO RETITLE AND AMEND CHAPTER 6.12 OF THE DISTRICT CODE. REGARDING THE CAPACITY FEE PROGRAM TO MAY 14. 2001 AT 2:00 P.M. President Hockett asked if there was anyone present who wished to comment on the proposed ordinance regarding the Capacity Fee Program. Hearing no comments, President Hockett continued the public hearing to receive comments on the proposed ordinance to retitle and amend Chapter 6.12 of the District Code regarding the Capacity Fee Program which was originally noticed for May 10, 2001 to May 24, 2001 at 2:00 p.m. b. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO RETITLE AND AMEND DISTRICT CODE CHAPTER 6.30. AND TO ADOPT A REVISED SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT- RELATED RATES AND CHARGES Mr. Batts, General Manager, introduced Ms. Lesley Klein, Supervising Engineering Assistant in charge of the Permits and Sewer Service Charge Section, who stated that a presentation was made at a previous Board Meeting on the proposed changes to the schedule of environmental and development-related rates and charges. The proposed schedule of rates and charges has been adjusted by the cumulative effect of two general salary adjustments, which would result in an increase of 9.7 percent for the majority of categories. Services provided in the Development Plan Review and Inspection areas for which District costs have not been recovered historically were identified and several new fees are proposed as set forth in Attachment 1 to the position paper. Ms. Klein stated that on April 19, 2001, letters and information were sent to approximately 140 customers regularly doing business with the District and representatives of the Home Builders Association of Northern California, the Engineering and Utility Contractors' Association, contractors, architects and engineers, property owners doing smaller main line construction, and others who have requested to receive the proposed schedule. No comments or questions have been received to date. Staff recommends adoption of the proposed ordinance and revised schedule of environmental and development-related rates and charges. At 3:05 p.m., President Hockett opened the public hearing to receive comments on a proposed ordinance to retitle and amend District Code Chapter 6.30, and the revised schedule of environmental and development-related rates and charges. There being no comments, the public hearing was closed. It was moved by President Hockett and seconded by Member Boneysteele, that Ordinance No. 216 be adopted, retitling and amending District Code Chapter 6.30, and adopting a revised schedule of environmental and development-related rates and charges. Motion unanimously approved on the following vote: 05 10 01 120 AYES: Members: Hockett, Boneysteele, Nejedly, Menesini, Lucey NOES: Members: None ABSENT: Members: None 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 7.a .3), General Manager's Report, was taken out of order earlier in the agenda to accommodate persons in the audience. 7. REPORTS a. GENERAL MANAGER 1) 05 10 Mr. Batts, General Manager, introduced Mr. Jim Belcher, Senior Engineer, who reported that on Monday, Tuesday, and Wednesday, May 7,8, and 9, 2001, the District weathered stage 2 emergency electrical alerts. This is an indication of what the District is expecting this summer. Mr. Belcher reported that the Cogeneration Outdoor Air Inlet Project will be completed by May 31, 2001. The California Energy Commission approved a $60,000 grant for this project. Mr. Belcher reviewed the PG&E electrical rates now in effect for on peak, partial peak and off peak. Increases ranging from 155 percent for on peak to 45 percent for partial peak are expected. The Public Utilities Commission will conduct a public hearing to consider these proposed increases on May 14, 2001. Mr. Belcher reviewed the natural gas prices for this summer and indicated that the District will try running its cogeneration facility on landfill gas during the July through October time period. There was a window of opportunity to buy natural gas basis for April through October 2002 at $2.80 per decatherm for 20,000 decatherms. The cost is now $7 per decatherm and has been as high as $10 per decatherm. With regard to landfill gas, Mr. Belcher stated that no invoices have been received to date from NEO or Acme. The cogeneration turbine has been running successfully on a landfill gas trial and it is planned to run the turbine on blended fuel all summer. The landfill gas price this summer will be $4.00. The compressor facility at Acme was out of service last week. It is expected to be down until the end of next week, but should provide reliable landfill gas for the summer. District staff continues to look for energy conservation measures. Mr. Belcher stated that motion detectors and solar photovoltaic are currently being evaluated with regard to costs, annual savings, and payback period. Mr. James M. Kelly, Director of Plant Operations, stated that the District is still working out all of the operations details concerning the compressor's permit with the Bay Area Air Quality Management District. Mr. Batts commended all the staff who have worked on the cogeneration project and facility. Cogeneration has an approximate 98 percent up time and it has saved significant amounts through the years. 2) Mr. Batts, General Manager, introduced Mr. James M. Kelly, Director of Plant Operations, who provided an update on the National Pollutant Discharge Elimination System (NPDES) permit renewal process. Mr. Kelly stated that as reported to the Board previously, a workshop on how to set interim limits was held on March 27, 2001. The statistical methods were revised and interim limits recalculated. Meetings were held the week of April 30, 2001 at which representatives from the Environmental Protection Agency (EPA), State Water Resources Control Board (SWRCB), Regional Water Quality Control Board (RWQCB), and dischargers were present. There was a struggle between the EPA and SWRCB. The outcome was that to get an interim limit, a discharger must show it cannot immediately comply with a water quality based (WQB) limit for a particular pollutant, and the 01 121 discharger will have up to ten years to comply. The WQB limit will be included in a fact sheet, not the findings or permit (the State portion of the permit). Mr. Kelly stated that because this was a change in understanding of what needed to be done and because the District did not receive the WQB limits until 4: 15 p.m. on the day before the comments were due, no substantial comments were included on the limits in the District's May 8, 2001, comment letter. The District's May 8 comments on our permit related to interim performance-based limits, the use of minimum level for compliance determination, chronic toxicity, mass limits, and ambient monitoring and detection limits. The District's comment letter was distributed to the Board. Other discharger comments on the District Tentative Order related to opposition to DDE/Dieldrin limit, opposition to final copper limit, opposition to enterococci limit, and request for additional dilution credit language. Because of the need to show the District cannot immediately comply with certain WQB limits, the Regional Board will allow the District to submit a second comment letter which is due to the RWQCB by May 23, 2001. Discussion of the mass limit has been set for May 11, 2001. The hearing on the Tentative Order has been changed from May 23, 2001 to June 20, 2001. Four other permits are also scheduled for consideration on June 20, 2001. Mr. Kelly highlighted revised permit changes and the revised Tentative Order. In summary, Mr. Kelly stated that the revised Tentative Order resulted in more reasonable limits, the EPA and SWRCB have entered the picture, the Tentative Order limits are such that the District has a high statistical likelihood of compliance, but concern remains with long-term mercury requirements and all pollutants with interim limits. Mr. Kenton L. Aim, Counsel for the District, discussed issues relating to whether the District may want to appeal these limits or accept them. 3) The update on the meeting with the City of Concord concerning contract issues was taken out of order earlier in the agenda. 4) Mr. Batts, General Manager, stated that the Board is aware that the District, the City of San Ramon, and the Dougherty Valley developers have reached a settlement over the dispute relating to construction of the Dougherty Tunnel and Trunk Sewer Project. As part of that settlement, the District has agreed to proceed quickly with construction of the trunk sewer portion of the project. Mr. Batts introduced Mr. Curt Swanson, Environmental Services Division Manager, who stated that with approval of the settlement agreement by the City of San Ramon last week, the District is now poised to move ahead with the Dougherty Tunnel and Trunk Sewer Project, DP 5902. The project includes construction of a 4,800-foot long, ten-foot diameter tunnel and four pipelines including a 60-inch gravity sewer, twin 18-inch pipes, and a bundle of 6-inch pipes. The trunk sewer portion of the project is 3,300 feet long and 24 inches in diameter and connects to the San Ramon (Larwin) Pumping Station. The District will be advertising for bids for the project beginning May 18, 2001. The construction cost is $14.5 million. Mr. Swanson reviewed the project schedule which calls for completion of the trunk sewer by December 2001 and completion of the tunnel by October 2002. Mr. Swanson showed a map and described the project alignment. A single construction contract approach will be used and the District will be the contracting authority. A combination of District staff and consultant staff will perform construction management. The District has other projects going on, so it will be necessary to bring in inspectors for the project and specialty inspectors will be needed in any case for the tunneling portion of the project. Mr. Henry Thom, Senior Engineer, will serve as the District's project manager. He will be assisted by other District engineers. The project is moving forward quickly, and there are some elements still being worked on that will be finished during the bid phase. Those elements and the requirements of the City of San Ramon will be 05 10 01 122 05 10 added into the contract by addendum. In addition, District staff will be meeting with the residents to get their input which will be incorporated into the contract also by addendum. In response to questions from the Board, Mr. Kenton L. Aim, Counsel for the District, described the liquidated damages conditions on the Estero portion of the contract. If too much time is spent in front of a home, money will be assessed and come through the District to the residents. Ms. Ann E. Farrell, Director of Engineering, described the project management staff that will be in the field. Discussion followed with regard to communicating the time constraints, sequencing of operations, housekeeping requirements, and related matters to the contractor. 5) Mr. Batts, General Manager, announced that the District will be advertising for bids for the Project to Refurbish Standby Effluent Pumps, DP 6152, to provide long-term reliable pumping of the Outfall. The original engineer's estimate for this work was $1 million. The condition of the two existing pump drive trains was evaluated, and it was determined that it is possible to significantly reduce the near-term corrective costs. The revised engineer's estimate for the project is $600,000. 6) Mr. Batts, General Manager, announced that the District will be advertising for the Collection System Operations (CSO) Material Storage Project, DP 6916. The project will construct a new concrete bunker to store base rock. The engineer's estimate for this work is $25,000. 7) Mr. Batts, General Manager, announced that Ms. Victoria Lamica, Purchasing and Materials Manager, has successfully leased all vacant space at 4737 Imhoff Place, Martinez, the light industrial building owned by the District. Current tenants have renewed their three-year leases, and the two vacant bays have been leased for three years at very favorable market rates. 8) Mr. Batts, General Manager, announced that a mobile household hazardous waste collection event will be held in Danville on Saturday, May 12, 2001, at the Town of Danville corporation yard on Camino Tassajara. While the collection event will be operated by Philips Services staff under the agreement with the District, the District will have a full-time representative on site before, during, and after the collection event. Mr. Batts reported that the good weather and notices in the recent edition of the District Pipeline newsletter brought near record participation levels to the permanent Household Hazardous Waste Collection Facility over the past three weeks. The largest number of cars, 160 and 161, were on April 26 and April 19 respectively. The participation level on Sunday was 52 on April 29 and 71 on April 22. Sunday is a three-hour day versus the normal seven- hour day. Typical participation levels for this time of year would be more like 100 cars on Thursday and Saturday, 70 cars on Friday, and 40 cars on Sunday. 9) Mr. Batts reported that the District's Source Control Program has been nominated for the Environmental Protection Agency (EPA) 2001 National Pretreatment Program Excellence Award. The District received first place with this award program in 1998. Programs become eligible two years after winning a previous award in the same category. The Regional Water Quality Control Board and U.S. EPA Region IX staff are responsible for nominating exemplary pretreatment programs for consideration each year. It is an honor for the District to receive this nomination from these oversight agencies. Staff from all the District departments have contributed to this prestigious nomination, but the Source Control, Community Affairs, Household Hazardous Waste, and Collection System Operations Grease Program deserve special recognition. 01 10) 11 ) 12) 13) 14) 123 Mr. Batts, General Manager, reported that again this year, the District's Earth Day booth was very successful and received a great deal of interest from the public. Di$trict pollution prevention efforts were featured. Outreach to District employees is required as part of the public outreach for the Pollution Prevention Program. After Earth Day, staff decided to use extra materials as an opportunity to provide information to District employees about gardening the less toxic way. Mr. Batts distributed the materials provided to District employees. These materials are similar to what the public receives when they attend an Integrated Pest Management (IPM) workshop given by Master Gardeners. Mr. Batts, General Manager, announced that the National Foundation of Integrated Pest Management (lPM) Education has contacted the District expressing interest in promoting the District IPM program to other municipalities. This National Foundation awarded the District's its first grant for the IPM partnership several years ago. Staff will keep the Board advised. Mr. Batts, General Manager, announced that the staff is investigating the California Sanitation Risk Management Authority (CSRMA) Workers' Compensation Program. A position paper will be presented for Board consideration at the May 24, 2001 Board Meeting. Mr. Batts, General Manager, announced that work on the Orinda Trunk Sewer Urgent Repair Project will begin at 9:00 p.m. on May 18, 2001 by McGuire & Hester, the District's contractor. Work will be done at night to mitigate impacts to the public. Mr. Batts, General Manager, announced that the District's Sewer Science Teacher Evaluation dinner will be held on May 17,2001 at 4:00 p.m. at the Collection System Operations (CSO) Department building in Walnut Creek. Any interested Board Members are welcome to attend. The effectiveness of the Sewer Science Laboratory Program will be evaluated and scheduling for the coming year will be done. b. COUNSEL FOR THE DISTRICT 1 ) Mr. Kenton L. Aim, Counsel for the District, stated that in accordance with the provisions of the Brown Act, it is appropriate to announce completed actions previously discussed in closed session. Mr. Aim announced that based on the authority provided by the Board in closed session, settlement has been reached with regard to the claim of Algie and Gayle L. Pulley for an overflow which occurred on April 11, 2000 at 1190 Glen Road in Lafayette. The final settlement has been signed and payment in the amount of $225,000 has been made. Mr. Aim announced that settlement has been reached with regard to the construction contract claim of Bay Cities Paving against the City of Martinez and the District relating to the Pacheco Boulevard Project, a joint project with the City of Martinez. The total amount of the final settlement from the City of Martinez and the District was $354,720. Payment has been made and the documents have been executed. Mr. Aim reported that on April 19, 2001, the Board held a closed session to consider the matter entitled CCCSD v. City of San Ramon, Contra Costa County Superior Court Case No. COO-02560, and to review the document for the Framework for Settlement. At that time the Board voted 5-0 for approval of the proposed settlement to dismiss the appeal of the City of San Ramon on the conditions set forth in the settlement agreement. Mr. Aim noted that there was one change to the proposed settlement as a result of the San Ramon City Council meeting last week and that has been incorporated in an addendum to Section 3 of Framework for Settlement. 05 10 01 124 c. Mr. Aim reviewed the addendum relating to obligations of the District to meet with the residents of the neighborhood affected by the installation of the sewer line within 10 days of the execution of the Settlement Framework at a meeting to be conducted by the City to receive suggestions for conditions or amendments to be added to the Encroachment Permit. Mr. Aim indicated that report of the personnel matter will be held until after closed session. SECRETARY OF THE DISTRICT None BREAK President Hockett declared a recess at the hour of 4:05 p.m., reconvening at the hour of 4: 18 p.m., with all parties present as previously designated. d. a. BOARD MEMBERS 1 ) Member Boneysteele, Chair of the Capital Projects Committee, reported that he, President Hockett, and Member Menesini met with staff on April 27, 2001 to review the draft 2001-2002 and 2002-2003 Capital Improvement Budget, the 2001 Ten-Year Capital Improvement Plan, and the Information Technology Five-Year Master Plan. President Hockett noted that it will likely be necessary to move funds and/or projects because of the settlement agreement with the City of San Ramon to expedite the projects in the San Ramon area. 2) Member Boneysteele introduced Mr. James M. Kelly, Director of Plant Operations, who distributed and summarized conference materials from the May 3-5, 2001 California Association of Sanitation Agencies (CASA) Conference. Topics of discussion included changes to the Bylaws to include cities and public organizations (consultants) as equal members, the draft Strategic Plan for CASA, the California Toxics Rule and associated State Implementation Plan, and energy issues. Member Lucey stated that he thought this conference was one of the best he has attended. President Hockett reported on the California Sanitation Risk Management Authority (CSRMA) training session. 3) Member Menesini reported on the upcoming Environment Alliance Discussion Series featuring Director of Plant Operations Jim Kelly and a tour of District facilities. 8. ENGINEERING AUTHORIZE THE GENERAL MANAGER TO ALLOCATE $75.000 FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY ACCOUNT FOR THE COMPLETION OF THE REMAINING WORK ON THE REPAIR OF THE RECYCLED WATER PIPELINE IN BUCHANAN FIELD GOLF COURSE. DP 7202 Mr. Batts, General Manager, stated that in February the District began an emergency repair of the main recycled water distribution pipeline where it crosses Buchanan Field Golf Course and goes under Highway 680. At the time of the emergency declaration, the Board authorized $224,300 for the estimated cost to investigate, design, and repair the damaged pipeline. The line has been repaired and has been back in service for several weeks. The golf course restoration is progressing. Forensic and engineering investigations have been conducted. As this is an unbudgeted contingency project, the Board must authorize the funds needed to cover all of the repair costs and to allow completion and closeout of the project. 05 10 01 125 Mr. Batts introduced Mr. Curt Swanson, Environmental Services Division Manager, who distributed and reviewed the summary of the projects costs, totaling $299,200. Additional funds in the amount of $74,900 are needed to complete the repair and forensics project. The results of the initial forensics investigations will be presented to the Board in closed session. It was moved by Member Nejedly and seconded by President Hockett, that the General Manager be authorized to allocate $75,000 from the Collection System Program Contingency Account for the completion of work related to the Repair of the Recycled Water Pipeline in Buchanan Field Golf Course, DP 7202. There being no objection, the motion was unanimously approved. 9. COLLECTION SYSTEM a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH SUSSEX BUSINESS SYSTEMS FOR THE PURCHASE AND INSTALLATION OF SEWER MAINTENANCE MANAGEMENT SOFTWARE Mr. Batts, General Manager, stated that the maintenance of the District's collection system has benefitted from the use of a computer based maintenance program which can capture pipe and structure conditions, special needs, scheduling frequency, and repair and cleaning histories. With the direction of current regulation, such as the Sanitary Sewer Overflow (SSO) and Capacity, Management, Operations, and Maintenance (CMOM), greater emphasis will be placed on the use and compilations of this type of data. The existing system was purchased in 1988 and does not have the capabilities needed to track and store the immense amount of data the District will be gathering in the future. The Sussex system has been reviewed by the District MIS Section for compatibility and reliability with the District's network, as this will also become a tool for engineering work in the collection system. It was moved by Member Menesini and seconded by Member Nejedly, that the General Manager be authorized to execute an agreement with Sussex Business Systems with a cost ceiling of $90,000 for the purchase and installation of sewer maintenance management software. There being no objection, the motion was unanimously approved. 10. HUMAN RESOURCES a. AMEND THE JOB CLASSIFICATION ADMINISTRA TION DESCRIPTION FOR DIRECTOR OF Mr. Batts, General Manager, stated that the amended job classification for the Director of Administration position contains minor changes. The executive search has begun and it is hoped that the position will be filled by July 2001. It was moved by Member Menesini and seconded by Member Boneysteele, that the job classification description for the position of Director of Administration be adopted. There being no objection, the motion was unanimously approved. b. APPROVE STAFFING PLAN FISCAL YEAR 2001-2002 It was moved by Member Menesini and seconded by Member Boneysteele, that the Staffing Plan for Fiscal Year 2001-2002 as set forth in items 1 through 5 in the position paper, be approved, that the hiring of students to fill seven positions in the Co-op program be authorized, and that the salaries for co-op positions be increased to $18.00 per hour. There being no objection, the motion was unanimously approved. 05 10 01 126 11. APPROVAL OF MINUTES a. MINUTES OF APRIL 5. 2001 It was moved by Member ßoneysteele and seconded by President Hockett, that the minutes of April 5, 2001 be approved as presented. There being no objection, the motion was unanimously approved. 12. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 10. 2001 It was moved by Member Lucey and seconded by Member Nejedly, that the Expenditure List dated May 10, 2001, including Self Insurance Check Nos. 101723-101729, Running Expense Check Nos. 131476-131693, and Sewer Construction Check Nos. 23210- 23267, be approved as recommended. There being no objection, the motion was unanimously approved. 13. BUDGET AND FINANCE a. RECEIVE MARCH 2001 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance for the month of March 2001, noting that expenditures were $251,000 greater than budget, representing a 9.0 percent unfavorable variance. Year-to-date expenditures were $244,000 less than budget, representing a 0.9% favorable variance. Year-to-date revenues of $21,514,000 were right on target. Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills and Treasury notes and the District's Local Agency Investment Fund (LAIF) account with interest rates ranging from 5.6 percent to 6.8 percent. The latest interest rate as of December 2000 was 5.9 percent. The average yield of the District's LAIF account through February 2001 was 6.17 percent. President Hockett declared that the March 2001 Financial Statements were duly received. 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member ßoneysteele expressed appreciation for the outstanding staff work and preparation for this meeting. Mr. Aim, Counsel for the District, suggested that an update on changes to Conflict of Interest regulations be calendared for a future Board Meeting. 16. CLOSED SESSION a. INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(c), on the advice of Counsel based on existing facts and circumstances, the Board of Directors of the Central Contra Costa Sanitary District has decided or is deciding whether to initiate litigation. One potential matter is to be discussed. At 4:45 p.m., President Hockett declared the closed session to discuss initiation of litigation pursuant to Government Code Section 54956.9(c). At 5:16 p.m., President Hockett concluded the closed session and reconvened the meeting into open session. 05 10 01 127 17. REPORT OF DISCUSSIONS IN CLOSED SESSION At this time, President Hockett reverted to Item 7.b.1), Reports, Counsel for the District. 7. REPORTS b. COUNSEL FOR THE DISTRICT 1 ) Mr. Aim, Counsel for the District, stated that in accordance with the provisions of the Brown Act, it is appropriate to announce completed actions previously discussed in closed session. Mr. Aim announced the terms of the retirement agreement effective April 27, 2001 with former Director of Administration Paul Morsen. At this time, President Hockett reverted to the order of the agenda. 18. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at the hour of 5: 18 p.m. Pres ent of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Secr. t r of the Cen ral Co tra Costa Sani a y District, County of Contra Costa, State of California 05 10 01