Loading...
HomeMy WebLinkAboutBOARD MINUTES 04-17-03 185 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 17, 2003 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on April 17, 2003. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Hockett, Lucey, Boneysteele, Nejedly ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Menesini, that the Consent Calendar, consisting of Items a. through c., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. Resolution No. 2003-029 was adopted, accepting the Grant of Easement from Charles T. Green and Rosalind M. Green for the San Ramon Force Main Project, DP 5554, and authorizing staff to record said Grant of Easement with the Contra Costa County Recorder. Motion unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly None None b. The Board was advised of the close out of the Treatment Plant Seismic Upgrade Project, DP 7144, and return of $1.1 million to the Treatment Plant Program. This item was presented for the Board's information. No action was taken. May 22,2003 at 2:00 p.m. was set as the date and time for a public hearing to consider an ordinance to amend Chapter 6.30 of the District Code, Schedule of Environmental and Development-Related Rates and Charges. c. Motion unanimously approved on the following vote: AYES: Members: Hockett, Menesini, Lucey, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: None 04 17 03 186 4. HEARINGS a. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.20.300 SCHEDULE OF REIMBURSEMENT FEES TO ESTABLISH A REIMBURSEMENT FEE APPLICABLE TO PROPERTY WHICH COULD CONNECT TO PROJECT 5515 SEWERS (FINLEY LANE. ALAMO) President Nejedly stated that the purpose of the public hearing is to receive comments on the proposed ordinance establishing a reimbursement fee applicable to property which could connect to Project 5515 sewers on Finley Lane, Alamo. Mr. Charles W. Batts, General Manager, stated that the installer of a main sewer extension on Finley Lane in Alamo has applied to set up a reimbursement fee account. The District Code requires that the Board conduct a public hearing prior to considering adoption of the ordinance setting the fee. Mr. Batts introduced Mr. Jarred Miyamoto- Mills, Principal Engineering, who used a map to describe the locations of the sewer main installation and the properties that could be served. Mr. Miyamoto-Mills advised the Board that the property at 1450 Finley Lane is owned by two District employees, Debbie and Rob Hinkson. Mr. Miyamoto-Mills stated that the Hinkson's property was treated just the same as everyone else's in this process. Mr. Miyamoto-Mills directed the Board's attention to Exhibit B of the position paper which shows the costs and reimbursement fee calculation. The cost is $89,386.34. There are nine residential unit equivalents (RUE). The reimbursement fee per RUE is $9,931.82. Notice was posted and published in the Contra Costa Times. A separate mailed notice was sent to the owners of all of the affected properties. No calls or correspondence has been received. At 2:04 p.m., President Nejedly opened the public hearing to receive comments on the proposed ordinance to amend District Code Section 6.20.300 Schedule of Reimbursement Fees. There being no comments, the public hearing was closed. It was moved by Member Menesini and seconded by Member Lucey, that Ordinance No. 225 be adopted, amending District Code Section 6.20.300 Schedule of Reimbursement Fees, to establish a reimbursement fee applicable to property which could directly connect to Project 5515 sewers (Finley Lane, Alamo). The motion was unanimously approved on the following vote: AYES: Members: NOES: Members: ABSENT: Members: Menesini, Lucey, Hockett, Boneysteele, Nejedly None None b. CONTINUE THE PUBLIC HEARING TO CONSIDER THE ESTABLISHMENT OF THE ARBOR LANE CONTRACTUAL ASSESSMENT DISTRICT NO. 2002-4 UNTIL MAY 8. 2003 Mr. Batts, General Manager, stated that the public hearing for the Arbor Lane Contractual Assessment District (CAD) No. 2002-4 was originally scheduled for March 20, 2003 and continued to April 17 due to a design problem. The design problem is related to the location originally proposed for the sewer and the possible construction impact on nearby large trees. An alternate alignment has been identified and plans have been drawn up. The County is now reviewing the new proposed alignment. District staff proposes to continue the hearing until May 8 to allow the County to complete their review of the new alignment. The homeowners in the Arbor Lane CAD have been notified about the change in the public hearing date. There being no objection, President Nejedly continued the public hearing to consider the establishment of the Arbor Lane CAD No. 2002-4 pursuant to California Constitution, Article XIII D, Section 4, and Streets and Highways Code, Sections 5898.20 and 5898.24 until 2:00 p.m. on May 8, 2003. 04 17 0.;.. 3.'~.' " , 187 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Noting the presence of the District's Labor Counsel, Mr. Batts, General Manager, requested that Item 13.b., Closed Session relating to Labor Negotiations, be taken out of order. Hearing no objection, President Nejedly proceeded to Item 13.b., Closed Session. 13. CLOSED SESSION b. LABOR NEGOTIATIONS With respect to labor negotiations, the closed session was held pursuant to Government Code Section 54957.6 to meet with designated representatives prior to and during consultations and discussions with representatives of employee organizations regarding the salary, salary schedules or compensation paid in the form of fringe benefits to employees in order to review its position and instruct its designated representatives. The District's negotiators are Labor Counsel Allison Woodall, Director of Administration Randall M. Musgraves, and Human Resources Manager Cathryn Freitas, and the pertinent employee organizations are the Central Contra Costa Sanitary District Employees Association, Local 1 and the Management Support/Confidential Group. At 2:10p.m., President Nejedly declared the closed session to discuss labor negotiations pursuant to Government Code Section 54957.6 as noted above. At 2:38 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. 14. REPORT OF DISCUSSION IN CLOSED SESSION No decisions were made or votes taken in closed session which require reporting at this time. At this time, President Nejedly reverted to the order of the agenda. 6. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONTRACT FOR TELEVISION INSPECTION OF SANITARY SEWERS TO ROTO-ROOTER FOR THE TV INSPECTION PROGRAM PROJECT. DP 5547. PHASE 2 Mr. Batts, General Manager, stated that in the Fall 2001, the District began a comprehensive closed-circuit television inspection program of the entire collection system. This was done in part because of a long-term concern for the older areas of the District's collection system, and partly to position the District to meet the anticipated requirements of Capacity Assurance, Management, Operations, and Maintenance (CMOM) regulations. The first contract (Phase 1) of this effort has been completed. This proposed contract award is for Phase 2. Mr. Batts introduced Mr. Tom Godsey, Associate Engineer, to report on the project status, the information that has been collected to date, and how and where that information will be used. Mr. Godsey stated that 300,000 feet of sewer (54 miles) has been televised in Orinda North. District staff reviews the sewer TV inspection logs and has identified two stoppages, seven spot repairs, five pipe segments needing cleaning schedule adjustment, approximately 20 structure repairs, and 12 pipe segments in poor condition. The information is collected on videotape, videotape log, and digital videotape log in database on CD. Mr. Godsey showed examples of the inspection reports and the images that are collected. The information that is collected is used in development of the Capital Improvement Plan and Budget, adjustment of sewer cleaning efforts, identification of spot repairs, and focused sewer pipe material studiés. With regard to prioritization of work, Mr. Godsey reported that Collection System Operations (CSO) prioritizes sewer repairs using a 1 through 5 system, with 1 being high and 5 being low. Engineering also uses a prioritization system for entire sewer replacements not just segments. The past practice has been to use a 1 through 4 04 1 r, 03 188 system. A new system is being developed based on pipe condition and other factors. Mr. Godsey stated that pipe condition is just one of the factors in sewer renovation planning. Other factors include the number of sewer overflows, sewer location (sensitive watersheds), capacity issues, risk assessment, maintainability, utility coordination, and right-of-way issues. Mr. Godsey stated the future sewer TV inspection work will include finishing work in the Orinda area and moving to the next watershed/city, investigating the use of digital video instead of VHS, and examining the feasibility and benefits of putting sewer TV inspection data into the current sewer maintenance software. Discussion followed with regard to using the information generated to formulate costs for use in the decision making and financial planning processes, and the need for the Board to be aware of the overall status, anticipated future costs, and public outreach. It was moved by Member Hockett and seconded by Member Menesini, that award of a service contract in the amount of $336,270 for completion of the Television Inspection of Sanitary Sewers Project, DP 5547, Phase 2, be authorized to Roto-Rooter, the lowest responsible bidder. There being no objection, the motion was unanimously approved. b. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO AMERICAN CONSTRUCTION & SUPPLY. INC.. FOR THE CATHODIC PROTECTION IMPROVEMENTS PROJECT. DP 6141A Mr. Batts, General Manager, stated that cathodic protection systems for both the treatment plant and collection system are the primary means of protecting the District's buried pipelines and structures. These systems require periodic maintenance and upgrades to ensure the permanence of these buried structures. Periodic surveys of the cathodic protection systems are performed to identify areas in need of repair and improvement. DP 6141, the Cathodic Protection Improvements Project, addresses deficient areas that were identified in the latest survey. These areas include the recycled water pipeline, Fairview and Maltby Pumping Stations, and junction structures and natural gas piping at the plant. Project design was completed in February and bids were opened on April 4, 2003. The Engineer's estimate was $100,000. It is recommended that award of the construction contract be authorized to American Construction & Supply, Inc., the lowest responsible bidder. Following discussion, it was moved by Member Menesini and seconded by Member Hockett, that award of a construction contract in the amount of $71,735 for the Cathodic Protection Improvements Project, DP 6141A, be authorized to American Construction & Supply, Inc., the lowest responsible bidder. There being no objection, the motion was unanimously approved. 7. REPORTS a. GENERAL MANAGER 1 ) 2) 3) 04 17 Mr. Batts, General Manager, provided an update on the State budget situation. There is little progress to report as the legislature waits for the May revision. The State has not yet been able to move forward with the sale of State Pension Bonds. Bills were introduced recently to improve safety pensions and provide local tax for those benefits. Bills have been introduced to limit the race by local governments for sales tax revenue. It is pretty much business as usual. The general belief is that it will take five years for the State economy to recover and the State budget problems to be resolved. Mr. Batts, General Manager, stated that there is nothing new to report on the retirement system at this time. Mr. Batts, General Manager, stated that at the December 19, 2002 Board Meeting after a discussion of the State budget, the Board asked staff to look at a strategy to deal with the probable loss of future ad valorem tax 0.' b~ ¡' ;j 189 revenue. At the January 9 Board Meeting and the January 30 Financial Planning Workshop, staff presented a near-term plan to save $1 million in Operations and Maintenance (O&M) expenses against the 2002-2003 budget, and $4 million against capital spending. Mr. Batts stated that the District staff will meet this commitment to the Board. Mr. Batts stated that he had indicated staff would provide the Board with quarterly updates on the areas of focus. Mr. Batts stated that the near-term actions to achieve budget savings were as follows: . Conditional hiring freeze Review use of temporary and contract employees Reduce non-critical overtime Review travel and conference expenses Reduce operating costs Defer major maintenance Savings from capital projects . . . . . . Mr. Batts stated that the savings over budget are as of the end of March. The March financial statements will be presented to the Board at the May 8 Board Meeting. These figures represent 75 percent of the budget year. They do not account for end-of-year adjustments, late billings, and so on. The budgets are based on the Board Financial Planning and Policy Workshop. With regard to the near-term actions discussed with the Board in January, Mr. Batts stated that staff told the Board that an immediate hiring freeze would be initiated, that management and the Board Personnel Committee would work together on critical positions, and that Board concurrence would be needed to hire. On January 9, 2003, there were 17 unfilled positions, nine of which were positions currently budgeted, for a savings with benefits of $1 million. As of April 17, 2003, there are 22 unfilled positions, 14 of which are budgeted, for a savings as of April of $1 + million offset by increased benefit costs. With regard to temporary and contract employees, staff was to work with the Board Personnel Committee to approve any new temporary employees. The District's use of summer students and co-ops was to continue. On January 9, there were seven temporary positions and one contract employee. Mr. Batts reported that as of April 17, there are nine temporary positions. There is one additional CSO clerical temporary position to provide coverage during an employee's maternity leave, and one additional temporary construction inspection temporary position during recruitment for a vacant position. With regard to reduction in non-critical overtime, Mr. Batts stated that overtime was to be limited to critical operations and customer service functions, and he was to provide an overtime report to the Board. The overtime report is against the budgeted line item. The annual budget for overtime is $911,954. At the end of March, budgeted overtime was $683,000, actual overtime was $613,000 for a savings of $70,000. Mr. Batts stated that Department Directors were to oversee and reduce planned out-of-state travel, and savings were to be reported to the Board. At the end of March there was a $67,000 savings from budgeted travel and conferences of $185,000. Mr. Batts noted that there has been a steady reduction in the Training and Conference Summary quarterly reports provided to the Board. The total for the first quarter of the fiscal year was $48,000, the second quarter total was $33,000, and the third quarter total was $21,000. 04 17 O. , "'~ ;J'ð 190 04 With regard to reducing operating costs, Mr. Batts stated that Department Directors are re-evaluating budgeted expenses and purchases, and savings were to be reported to the Board. Some savings can qe realized, but they are a minor part of the budget. Out of the District's $41 million annual budget, $15 million is non-labor. At the end of March, the non- labor budget was $11 million, and the savings was $1.6 million. Mr. Batts stated that this savings is misleading because much of the expenses are incurred in the last quarter of the year. With regard to deferring major maintenance, the Operations management team was to identify and analyze possible deferrals, with permit compliance and safety being central issues. Savings were to be reported to the Board. Mr. Batts stated that the budget report will show savings in budgeted accounts. Repairs and Maintenance is down $400,000 year-to- date, but that figure will be less by yearend. The last quarter is when many large maintenance and cleaning projects are done. Work has been completed on six clarifiers, but work is still to be done on the large influent pumps in the plant, and crown spraying and root control in the collection system. Mr. Batts stated that major maintenance costs will be under budget or close to budget at the end of the fiscal year. With regard to postponing capital projects, Mr. Batts stated that the capital program is flexible in balancing cost and workload issues. Staff committed to deferral of $4 million in capital projects in the current fiscal year. Mr. Batts stated that he believes that staff will come very close to this goal. In addition to the $4 million deferral in the current fiscal year, $14 million in capital projects were to be deferred in future years. This will be discussed in greater detail at the Capital Improvement Budget Workshop on April 24. In summary, Mr. Batts stated that near-term budget savings should exceed $1 million over the fiscal year 2002-2003 O&M Budget. Savings are projected to be closer to $1.5 million. As staff goes through the budgeting process for 2003-2004, efforts are being made to reduce the future projections given to the Board at the January Workshop. The need to fill vacant positions is being weighed against existing savings as the budgeting process proceeds. Future costs are based on the ten-year projections. Capital projects will bear the largest impact in cost reductions at the District. Mr. Batts stressed that it is important that staff remain focused on the three other District goals of compliance, customer service, and high performance organization, as well as responsible rates. Mr. Batts stated that next steps include: . Continue efforts on near-term savings; . Incorporate savings into the budget process . Budget against 10-year plan projections Include projected savings in budget report Long-term goals as outlined in January Financial Planning Workshop; and . . . Provide Board with quarterly updates. Member Lucey thanked Mr. Batts for the timely report on budget savings. It is obvious that District staff is trying and succeeding in meeting the goals. Member Lucey stated that the eight unfilled, unbudgeted positions should be removed. If staff needs another position, they should come to the Board. Member Lucey stated that he would like to meet with the General Manager to discuss this. 17 03 4) b. c. d. 191 Member Menesini disagreed, stating that those positions provide a safety net. The flexibility they provide is a good thing. Member Menesini stated that the one thing he is concerned about is reducing the costs for travel. It is important to have up-to-date technology, and travel and conferences theoretically do that. Member Menesini suggested that in-service training be used more, where the person attending a conference would come back and share that knowledge with others at the District. Member Menesini stated that he would also suggest that Community Affairs Manager Harriette Heibel get more involved with educational technology that could produce the same result. Mr. Batts stated that some of that is already in place. Mr. Batts, General Manager, announced that the District is advertising for bids for the Rossmoor Sewer Improvements Project, Phase 8, DP 5638. The engineer's estimate for the work is $320,000. 5) Mr. Batts, General Manager, announced that there will be a public workshop for the Walnut Creek Renovations Project on May 7,2003 at 7 p.m. at the District Collection System Operations (CSO) Division office in Walnut Creek. 6) Mr. Batts, General Manager, announced that negotiations to acquire the easements needed from Dr. and Mrs. Siu, and Ms. Brockman for the Wendt Ranch Offsite Service are continuing. There are still a number of unresolved issues. The District's Special Counsel Richard Rypinski filed a complaint today in Contra Costa County Superior Court to initiate eminent domain proceedings to acquire the necessary easements. This action will ensure that construction of the project can be completed this summer. 7) Mr. Batts, General Manager, stated that on April 24, 2003, at 2:00 p.m. there will be a Board workshop to discuss the 2003-2004 Draft Capital Improvement Budget and Plan, including projects which have been selected for deferral. Staff will revisit the status of the Contractual Assessment District (CAD) program in light of current budget limitations. There will be a presentation on the Management Information System (MIS) plan. Staff is proposing that there be a break in the workshop agenda at this point. Those Board Members who wish to hear project details on any of the many projects in the budget and plan can remain for further discussion. Prior to the workshop, if Board Members would let Director of Engineering Ann Farrell or the General Manager know projects of particular interest, staff will be prepared to discussed those projects in more detail. COUNSEL FOR THE DISTRICT None SECRETARY OF THE DISTRICT 1) Ms. Joyce E. Murphy, Secretary of the District, announced that a meeting has been scheduled on April 23, 2003 for the District Board Household Hazardous Waste Committee Members Lucey and Hockett to meet with Central Contra Costa Solid Waste Authority Board representatives to discuss mobile collection events. Member Lucey stated that everything will be brought back to the full Board. BOARD MEMBERS 1 ) Member Menesini announced that Mr. Igor Skaredoff, retired Process Chemist for Shell Oil, will be featured at the April 21,2003 Environmental Alliance Discussion Series. Mr. Skaredoff will be discussing Watershed Management in Alhambra Creek. All those interested are invited to 04 17 03 192 attend. The meeting begins at noon at the John Muir National Historic Site, 4202 Alhambra Avenue in Martinez. 2) Member Menesini stated that he will be attending the Association of Bay Area Governments (ABAG) CalFed Task Force meeting on May 5, 2003. Member Menesini stated that this is an effort to get more funding for projects relevant to the needs of Northern California. Member Menesini stated that Environmental Services Division Manager Curt Swanson is his alternate on this task force. 3) Member Menesini reported that he and General Manager Charles Batts attended the Dublin San Ramon Services District 50th Anniversary reception at which the District's proclamation was presented. Member Boneysteele left the meeting at the hour of 3:35 p.m. 8. APPROVAL OF MINUTES MINUTES OF APRIL 3. 2003 a. It was moved by Member Hockett and seconded by Member Lucey, that the minutes of April 3, 2003 be approved as presented. There being no objection, the motion was approved with Member Boneysteele being absent. 9. APPROVAL OF EXPENDITURES EXPENDITURE LIST DATED APRIL 17. 2003 a. Member Lucey, Chair of the Budget and Finance Committee, stated that in the necessary absence of President Nejedly, he reviewed the expenditures. It was moved by Member Lucey and seconded by President Nejedly, that the Expenditure List dated April 17, 2003, including Self Insurance Check Nos. 102001- 102005. Running Expense Check Nos. 143989-144245, Sewer Construction Check Nos. 25507-25543, Payroll Manual Check Nos. 48896-48904, and Payroll Regular Check Nos. 54459-54498, be approved as recommended. There being no objection, the motion was approved with Member Boneysteele being absent. 10. BUDGET AND FINANCE a. RECEIVE THE 2002 ANNUAL REPORT OF THE DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE Mr. Batts, General Manager, stated that the 457 Deferred Compensation Plan is administered by the Deferred Compensation Advisory Committee established by the Board of Directors in January 1982. One of the committee's duties is to provide an annual report to the Board, which reviews the investment performance of the Plan. Attached to the position paper is an in depth report on all three Deferred Compensation providers. President Nejedly declared that the Annual Report of the Deferred Compensation Plan Advisory Committee for 2002 was duly received. b. APPROVE THE 2003-2004 EQUIPMENT BUDGET FOR INCLUSION IN THE 2003-2004 DISTRICT BUDGET Mr. Batts, General Manager, stated that the draft 2003-2004 Equipment Budget was reviewed with the Board Capital Projects Committee on March 27, 2003. The proposed Equipment Budget presented for 2003-2004 represents a historically modest request in light of the current budget situation. The Board Capital Projects Committee did not make any changes to the proposed Equipment Budget. Staff recommends approval of the Equipment Budget for inclusion in the 2003-2004 District Budget. 04 17 03 193 It was moved by Member Lucey and seconded by Member Hockett, that the 2003-2004 Equipment Budget be approved for inclusion in the 2003-2004 District Budget to be adopted at the June 19, 2003 Board Meeting. There being no objection, the motion was approved with Member Boneysteele being absent. c. REVIEW THE FINANCIAL STATUS AND BUDGET OF THE SELF INSURANCE FUND AND APPROVE THE ALLOCATION OF $225.000 TO Tlj£...B!~.P FROM THE 2003-2004 O&M BUDGET Mr. Batts, General Manager, stated that each year the Board reviews the Self Insurance Fund and considers funding recommendations from staff for the next fiscal year. The purpose of the Self Insurance Fund is to provide prudent reserves for funding District losses. Director of Administration Randall M. Musgraves would be happy to answer any questions the Board may have. There being no questions, it was moved by Member Lucey and seconded by Member Hockett, that the proposed 2003-2004 Self Insurance Fund Budget be received and that allocation of $225,000 from the 2003-2004 O&M Budget be approved. There being no objection, the motion was approved with Member Boneysteele being absent. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 12. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly requested an update on potential uses for the District's Kiewit property. Member Boneysteele returned to the meeting at the hour of 3:40 p.m. Mr. Batts, General Manager, stated that Director of Administration Randall M. Musgraves is looking at uses of various District properties. Staff would be happy to provide a report to the Board. 13. CLOSED SESSION a. EXISTING LITIGATION The closed session to discuss existing litigation pursuant to Government Code Section 54956.9(a) to discuss Central Contra Costa Sanitary District v. Orinda Moraga Disposal Service, Inc., et ai, Contra Costa Superior Court No. C96-00562, was not held. b. LABOR NEGOTIATIONS This item was taken out of order earlier in the agenda. 14. REPORT OF DISCUSSION IN CLOSED SESSION This item was taken out of order earlier in the agenda. 04 17 03 194 15. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 3:41 p.m. to reconvene at 2:00 p.m. on Thursday, April 24, 2003 in the Multipurpose Hoom for an Adjourned Regular Board Meeting and a Capital Projects Committee Meeting/Board Workshop to review the Draft Capital Improvement and MIS Information Technology Development Budgets for 2003-2004. ~I¿_- C. ~~ Pre' ent of the Board of D' ctors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 04 17 0, . 6"')) . ' , ~'1'íò. J..~