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HomeMy WebLinkAboutBOARD MINUTES 05-08-03 204 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 8,2003 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on May 8, 2003. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Hockett, Boneysteele, Nejedly ABSENT: Members: Lucey Member Lucey had previously advised that he would be unable to attend this meeting and had requested to be excused. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS None 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF CALIFORNIA WATER ENVIRONMENT ASSOCIATION íQ!1.EA) TREA1M.ENT Pb8.NT OF lJiE YEAR STATEWID!= AWARD FOR 2002 BY CWEA PRESIDENT LARRY TOLBY b. PRESENTATION OF CALIFORNIA WATER ENVIRONMENT ASSOCIATION (CWEA) COLL5.ÇIJON SYSl£M OF lJiE YEAß.MATEWID-E AWA8.P FOR 2002 BY CWEA PRESIDENT LARRY TOLBY c. PRESENTATION OF CALIFORNIA WATER ENVIRONMENT ASSOCIATION (CWEA) 2002 R!Q!:!ARD D. EQM.EROY AWAR!2IQ.MfL.PAUL LOUIS, MAINTENANCE SUPERVISOR BY CWEA PRESIDENT LARRY TOLBY Mr. Charles W. Batts, General Manager, introduced employees representing a range of activities at the District who helped win these awards: Garth Williams representing Control Systems, Randy Grieb representing Process Control, Ken Grubbs representing Communication Services, Ted Smith representing Operations, Mike Thornton representing Maintenance, Bhupinder Dhaliwal representing the Laboratory, Craig Mizutani representing Maintenance Engineering, Tim Potter representing Source Control, Elaine Jacobs representing Household Hazardous Waste Collection, Dorie Keifer representing Plant Operations Division Administration, Steve Co'1siaine representing Collection System Operations (CSO) Pumping Stations, Paul Louis representing CSO Field Operations (Cleaning), Tifton Gantt represr~nting CSO Field Operations (Construction), Rich Boylan representing CSO Fleet S~rvices, Ralph Bates representing CSO Technical Services, and Paul Crouch represer'ijng CSO Crew Leaders. Mr. Batts introduced Mr. Larry Tolby, President of California Water Environment Association (CWEA), who stated that he is honored to be present to re-present the CWEA awards. Mr. Tolby stated that he wanted to personally present the awards and to express the significance of the awards that District employees earned through their hard work and outstanding efforts. Some 350 awards were given State-wide at the local section level. This number is greatly reduced as winners advance to the state and 05 08 03 205 national level. Competition for a statewide award is very rigorous. This year it is quite phenomenal that Central Contra Costa Sanitary District received not one, but three awards: the Large (greater than 10 MGD) Treatment Plant of the Year Award and the Large Collection System of the Year Award. In addition, the very distinguished Richard D. Pomeroy Award was given to Mr. Paul Louis, Maintenance Supervisor, for his outstanding service in the collection system field. On behalf of the 7,400 CWEA members, Mr. Tolby presented the Large Treatment Plant of the Year Award and the Large Collection System of the Year Award to Central Contra Costa Sanitary District and commended all of the people in the room and all those in the field for their hard work and their support of CWEA. Mr. Tolby presented the prestigious Richard D. Pomeroy Award and a lapel pin to Mr. Paul Louis, Maintenance Supervisor, and thanked him for his is numerous contributions in the collection system field and to CWEA. Mr. Tolby stated that Mr. Louis will now compete for the national award with candidates from the other 49 states. President Nejedly thanked Mr. Tolby for taking the time to personally present the awards. President Nejedly commended the entire District staff for their efforts that resulted in the District receiving both the Collection System of the Year Award and the Treatment Plant of the Year Award, and congratulated Mr. Louis on receiving the Richard D. Pomeroy Award and wished him luck in the national competition. d. ACKNOWLEDGE SAFETY SUGGESTION OF THE YEAR AWARD FOR 2002 FOR SUGGESTION SUBMITTED BY RICARDO SMITH, MECHANICAL SUPERVISOR PLANT OPERATIONS DIVISION, OPERATIONS DEPARTMENT Mr. Batts, General Manager, acknowledged Mr. Ricardo Smith, Mechanical Maintenance Supervisor, whose safety suggestion was selected for the Most Significant Safety Suggestion of the Year Award. Mr. Smith suggested that the grating from Hearth No.2 be extended to the soot ash conveyor so employees can access the conveyor from the hearth. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Hockett, that the Consent Calendar, consisting of Items a. through h., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. a. The full Offer of Dedication from Larry Carre' and Judith Carre', Job 5256, Parcel 2, Alamo area, was accepted; staff was authorized to record said Offer of Dedication with the Contra Costa County Recorder; and Resolution No. 2003- 030 was adopted to that effect. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey b. --~ The contract work for the Influent Diversion Superstructure Demolition Project, DP 6167, was accepted and filing of the Notice of Completion was authorized. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey 05 08 03 206 c. The Board was advised of the close out of the Outfall Improvements Project, Phase 4, DP 7184, with a net underrun of $401 ,000. This item was presented for the Board's information. No action was taken. d. May 22, 2003 at 2:00 p.m. was established as the date and time for a public hearing to receive comments on the draft Fiscal Year 2003-2004 Capital Improvement Budget/2003 Ten-Year Capital Improvement Plan. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey e. A public notice was authorized to set public hearings on June 5, 2003 at 2:00 p.m. to receive public comment on the collection of the Sewer Service Charges by placing them on the County tax roll, and to receive public comment on the 2003-2004 Operations and Maintenance Budget and Self Insurance Fund Budget. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey f. Staff was directed to secure the services of an arbitrator to hear the Step Four grievance of Mr. Ricardo Hernandez, Engineering Assistant III. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey g. Staff was directed to secure the services of an arbitrator to hear the Step Four Grievance of Mr. David Rolley, President, Employees' Association, Public Employees' Union Local One, concerning interpretation of Memorandum of Understanding Article III, Section 5.1, Temporary Employees. Motion approved on the following vote: AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey h. Expenditure of Equipment Budget Contingency funds in the amount of $6,117 was authorized to purchase a postal mailing machine. Motion approved on the following vote: 05 08 03 207 AYES: Members: Menesini, Hockett, Boneysteele, Nejedly NOES: Members: None ABSENT: Members: Lucey 5. HEARINGS a. CONDUCT A PUBLIC HEARING: ADOPT A RESOLUTION OVERRULING PROTESTS: ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION ARTICLE XIIID, SECTION 4: ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT; AND AUTHORIZE EXECUTION OF AGREEMENT WITH ARBOR LANE PARCEL OWNERS IN CONJUNCTION WITH THE ARBOR LANE CONTRACTUAL ASSESSMENT DISTRICT NO. 2002-4 President Nejedly stated that the purpose of the public hearing is to receive comments regarding the proposed assessment, the Resolution of Intention, the Engineer's Report, annexation, and any other comments regarding the Arbor Lane Contractual Assessment District (CAD) No. 2002-4. Mr. Batts, General Manager, stated that the Board considers approval of CAD projects at three specific times. Under the District's Contractual Assessment District Program, these approvals are at the initiation of the CAD, following the election by affected property owners, and at project completion to set final assessments. Mr. Batts introduced Mr. Curtis W. Swanson, Environmental Services Division Manager, who stated that the Arbor Lane CAD No. 2002-4 is at the second decision point. The Arbor Lane CAD meets all the District CAD formation criteria. It benefits at least five properties, at least 60 percent are developed properties, and there are no more than two dwellings per property. Using a map, Mr. Swanson described the location of the proposed Arbor Lane CAD project that will serve properties on Arbor Lane and Bernie Lane in Alamo. There are ten participants and one non-participant. The CAD project will install 810 feet of 8-inch sewer and four manholes. The estimated cost of the CAD project is $142,111. The estimated cost for the Arbor Lane sewer is $14,937 per participant, or $2,008 annually for ten years. The estimated cost for the Bernie Lane sewer is $13,728 per participant, or $1 ,845 annually for ten years. Mr. Swanson reported that this is the third CAD project that the Board will consider funding this fiscal year. If the Arbor Lane CAD is approved, a total of $462,646 will have been authorized in the current fiscal year. At 2:18 p.m., President Nejedly opened the public hearing to receive comments on the proposed Arbor Lane Contractual Assessment District No. 2002-4. Mr. Swanson announced the results of the ballots submitted by owners of each affected parcel in the Arbor Lane CAD No. 2002-4. Seven ballots were in favor of and four ballots were opposed to the proposed assessment. -- Mr. Gerald Riley, 2618 Danville Boulevard, Alamo, distributed copies of his letter to Mr. Randall M. Musgraves dated May 8, 2003, protesting the current configuration of CAD No. 2002-4 proposed for the Bernie Lane sewer. Mr. Riley stated that he is not opposed to the sewer; rather he thinks that it must and should go in. Mr. Riley used a map to show the location of his home and the proposed Bernie Lane sewer. Mr. Riley stated that he has met with Mr. Eric Whan of the Contra Costa County Flood Control District because he would like to purchase or use the Flood Control property that abuts his property for planting additional trees and landscaping. If the Bernie Lane sewer is installed as proposed it will preclude that. Mr. Riley stated that he has asked Mr. Swanson if various existing utilities (East Bay Municipal Utility District line and Pacific Gas and Electric gas line) could be relocated so the new sewer line could be next to or much closer to the south side of the paved area on Bernie Lane. Mr. Swanson made little attempt to resolve these issues. Mr. Riley stated that he really does not want to hold up the project but he does not want to see the sewer line put in a location that will 05 08 03 208 impact his home forever. Mr. Riley stated that he is not opposed to the sewer, just to the location. Discussion followed in which Mr. Swanson explained the right-of-way uses and ownership of the Flood Control property. Mr. Swanson stated that Contra Costa County owns the land for access to San Ramon Creek, but it is also used for public right-of-way and utility access. Using a Bernie Lane cross section, Mr. Swanson stated that the original plan was to go on the north side, but there are several large trees located on that side of the road that could possibly be damaged by the excavation. For that reason, the pipeline was moved to the other side of the road avoiding the gas line and power line. The trees on Mr. Riley's property will also be avoided. In response to questions from the Board, Mr. Swanson stated that there is a need for separation between the water line and sewer line for health reasons and construction purposes. The easement with the appurtenant properties give property owners the right to use the easement for access and utilities. Mr. Swanson stated that any additional costs would be borne by the homeowners and they must be asked whether they are willing to finance additional costs as part of the CAD. Relocation of the utilities was discussed with PG&E, and they indicated they would probably replace the entire line because it is an older line. The estimated cost from PG&E was between $40,000 to $100,000 depending on how much had to be done. Mr. Swanson stated that he told PG&E they would not have to replace a portion of the line that would be replaced as part of the project. That brought the estimate to about $50,000. In response to questions from the Board, Mr. Riley stated that he initially was a proponent of the CAD but now it is not to his benefit. Mr. Riley stated that his home is already on the sewer, but he had thought he could use the CAD sewer as an alternative sewer if he ever wishes to. Ms. Jenny Sweetland, 1400 Bernie Lane, Alamo, addressed the Board representing the proponents of the proposed CAD and the homeowners on Bernie Lane. Ms. Sweetland stated that both as individuals and as a group, the residents are supporting the proposed CAD for two reasons. The bend on Mr. Riley's property connects to an existing trunk manhole on Danville Boulevard and eliminates the need for another manhole and connection. Also, the bend avoids large trees next to the Mayer property on Bernie Lane. An arborist looked at the trees and felt they were very valuable and the sewer should be moved as far as possible away from them. With regard to Mr. Riley's trees, the arborist gave the opinion that there were one or two trees that would probably be dead in a year or two. Ms. Sweetland stated that she appreciates Mr. Riley's concerns and would like to address them. Ms. Sweetland distributed a handout showing the ownership interest of the Flood Control District of 40 feet between the Mayer and Riley properties, then narrowing to 20 feet for the rest of the street, with access and utility rights for the entire length of the street. Ms. Sweetland stated that she is not willing to give up her access and utility rights for Mr. Riley to plant trees. Ms. Sweetland stated that Mr. Riley's second concern was that someday he would like to purchase part of the property from Flood Control and annex it to his property. Ms. Sweetland stated that is fine, but it would not extinguish her right of access. Mr. Riley requested that the CAD participants incur $50,000 to $100,000 more to move a gas line. Ms. Sweetland stated that she is not willing to do that. Discussion followed with regard to the existing trees and Mr. Riley's wish to plant additional trees. Mr. Riley stated that a fire lane only has to be 25 feet, so the access would still be over 30 feet wide even with what is on Mr. Mayer's property already. Mr. Riley stated that he has offered to buy 10 feet of the property or whatever it takes. Ms. Sweetland stated that she would encourage Mr. Riley to plant trees and improve his property, but she does not want that done on the Flood Control property and the utility easement. Discussion followed with regard to the location of the utilities, complications of moving lines, and the risk to trees from boring. President Nejedly stated that the District set up the CAD Program to help property owners put in sewers where there are failing septic 05 08 OQ .0 209 tanks. The District's goal is to put sewers in the best and least expensive location. President Nejedly stated that he understands Mr. Riley's concerns, but the District has an obligation to provide sewer service. There being no further comments, President Nejedly closed the public hearing at the hour of 3:08 p.m. Discussion followed in which the Board expressed understanding of Mr. Riley's positions, but underscored the need to maintain the access and utility easement. Following discussion, it was moved by Member Hockett and seconded by President Nejedly, that Resolution No. 2003-031 overruling protests be adopted; that Resolution No. 2003-032 be adopted, confirming compliance with California Constitution Article XIIID, Section 4; that Resolution No. 2003-033 be adopted, approving Engineer's Report, assessments, and ordering improvements; and that the General Manager be authorized to execute an agreement with the Arbor Lane owners in conjunction with the Arbor Lane CAD No. 2002-4. Motion approved on the following vote: AYES: Members: Hockett, Nejedly, Menesini, Boneysteele NOES: Members: None ABSENT: Members: Lucey 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 9.b., Human Resources, was taken out of order to accommodate interested persons in the audience. 9. HUMAN RESOURCES a. ADOPT MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE MANAGEMENT SUPPORT/CONFIDENTIAL GROUP, EFFECTIVE APRIL 18,2003 THROUGH APRIL 17,2009 Mr. Batts, General Manager, requested Board approval of the Memorandum of Understanding (MOU) between the District and the Management Support/Confidential Group. Mr. Tad Pilecki, President of the Management Support/Confidential Group (MS/CG), addressed the Board, stating that when he appeared before the Board on January 9, 2003 on behalf of MS/CG with respect to the financial state of the District, one of the key messages MS/CG sent was that the District and its employees did not create the financial problem, but MS/CG and the District would have to work together to solve it. One of the challenges facing the District was the pending labor negotiations. MS/CG and the Board's representatives met and negotiated the MOU before the Board today in good faith and in a professional manner. MS/CG's membership ratified the MOU overwhelmingly, in large part because it felt that the Board and its representatives treated MS/CG with fairness given the current economic climate. MS/CG appreciates the professional manner in which it was treated and hopes that the future brings the same. President Nejedly thanked Mr. Pilecki for his comments. It was moved by Member Menesini and seconded by Member Hockett, that the Memorandum of Understanding between the District and the Management Support/Confidential Group (MS/CG), effective April 18, 2003 through April 17, 2009, be approved. There being no objection, the motion was approved with Member Lucey being absent. At this time, President Nejedly reverted to the order of the agenda. 05 08 03 210 a. 05 7. REPORTS GENERAL MANAGER 1) Mr. Batts, General Manager, reported that the State budget deficit remains the main topic in Sacramento as problems continue to mount. The Assembly passed a bill trimming $6 billion off the deficit using $2.5 billion in local government funding and $2.2 billion in pension bonds. The cost to the State of not issuing pension bonds would be $656 million. So far the State has adopted $8 billion in cuts, a likely $4 billion in vehicle license fee revenue, and this bill for $6 billion for a total of $18 billion out of a $35 billion deficit. California is also looking at advancing itself $3.2 billion from future tobacco lawsuit payments. Talk continues with regard to additional borrowing, revenue from State income tax, and the Governor's May budget revision. 2) Mr. Batts reported that the District has investigated bond financing for the unfunded liability of the retirement benefit. Contra Costa County has completed pension obligation bond funding and is planning future funding; however, District staff recommends that the District not pursue bond financing at this time. After the District has finalized retirement benefits with the bargaining groups, and reviewed the actuarial report based on the retirement benefit and the impact of cost saving measures, staff will have a better understanding of the actual amount of the unfunded liability and this item will be brought back to the Board. 3) Mr. Batts, General Manager, stated that District staff has recently completed a rigorous review of rates and charges for developer fees, source control, and septage dumping services. Significant fee increases in some of these rates are necessary to recover the cost of service. This information was presented to the Board Budget and Finance Committee on Monday, May 5, 2003. The Committee has asked that a report be brought back to the full Board for input and direction prior to beginning outreach to the affected parties and community. One of the Committee's suggestions was that the proposed increase in rates and charges be conducted in parallel with the proposed increase in Capacity Fees, mainly because many of the same parties will be affected. Staff concurs with this suggestion and is recommending that the public hearing scheduled for May 22, 2003 on Environmental and Development-related Rates and Charges be canceled and rescheduled to a later date concurrent with the capacity fee public hearing. Mr. Batts indicated that this will be discussed and Board direction requested at the end of the presentation by Director of Engineering Ann Farrell. Ms. Ann E. Farrell, Director of Engineering, provided an overview of Environmental and Development-related Rates and Charges. Environmental and Development-related Rates and Charges pay for permit counter assistance, plan review, inspection of construction for laterals and main line extensions, enforcement of District Specifications and good construction practices, addition of new sewers to District maps, Source Control permits and inspections, and septic and grease haulers sampling and treatment. An update of the Rates and Charges is needed because the District is not recovering the full cost of service, because' there is a need to recover full overhead (20 percent increase), and because there is a need to adjust rates to cover the actual level of effort involved in providing service. Ms. Farrell reviewed the impact of the proposed increase on typical projects. For example, a single house connection would increase from the existing fee of $3,922 to the proposed fee of $4,342, including the current Capacity Fee of $3,360. An increase in the $1,000 to $1,500 range is expected in the Capacity Fee which would add to the increase noted above. A Budget and Finance Committee and Board presentation is planned in the June timeframe to review proposed changes to the Capacity Fee. Ms. Farrell provided a 08 03 211 comparison of the District's current and proposed Environmental and Development-related Rates and Charges with those of Mt. View Sanitary District, Dublin San Ramon Services District, Delta Diablo Sanitation District, and West County Wastewater District. Mt. View Sanitary District's approach is to recover all its costs and their costs are most similar to ours. Dublin San Ramon Services District, Delta Diablo Sanitation District and West County Wastewater District subsidize their rates by other charges. Ms. Farrell stated that this is coming to the Board prior to the public hearing because this is a Board policy matter. Board guidance is needed with regard to the following Board policy issues: . Recover full cost for District service functions? . Charge "full" overhead rate? . Limit service charges to those of other agencies? . Phase in "full" cost recovery? . Consider alternative proposal? Ms. Farrell stated that staff felt it was important to identify the full costs and then decide where to go from there. It is proposed to: . Adjust Rates and Charges schedule to parallel proposed Capacity Fee increase schedule (cancel May 22,2003 public hearing); . Begin outreach on Rates and Charges proposed increases but indicate that additional information relative to Capacity Fees will be coming next month; . Complete Capacity Fee recommendations and bring to Board Budget and Finance Committee and the full Board in the June timeframe; . Begin outreach on proposed Capacity Fee increase; . Hold public hearings on both issues in the July timeframe; and . Implement new Rates and Charges and new Capacity Fees, 60 days later. Mr. Kenton L. Aim, Counsel for the District, stated that this matter came up after the agenda was posted. If the Board wishes to consider putting off the public hearing, Section 54954.2(b)(2) of the Brown Act provides that an item can be added to the agenda by two-thirds vote of the Board, or unanimous vote if less than two-thirds of the Board Members are present, if the item came to the attention of the District subsequent to posting the agenda and action needs to be taken before the next regular Board Meeting. - It was moved by Member Menesini and seconded by President Nejedly, that in accordance with Government Code Section 54954.2(b )(2), the Board of Directors of the Central Contra Costa Sanitary District determines that the Board Committee suggestion that proposed changes to Environmental and Development-related Rates and Charges be considered in parallel with proposed changes to Capacity Fees and the need to take immediate action came to the attention of the District subsequent to the agenda being posted, and that this item be added to the agenda for consideration by the Board. By unanimous vote of the Board Members present, the motion was approved. Member Lucey was absent. 05 08 03 212 7) 8) 05 08 It was moved by President Nejedly and seconded by Member Hockett, that the public hearing set for May 22,2003 to consider revisions to the Environmental and Development-related Rates and Charges be cancelled, and rescheduled to a later date concurrent with the public hearing to consider proposed revisions to the Capacity Fees. There being no objection, the motion was unanimously approved with Member Lucey being absent. In the discussion that followed, it was the consensus of the Board with Member Lucey being absent, that outreach on proposed changes to the Environmental and Development-related Rates and Charges be delayed and done at the same time as outreach on the proposed changes to the Capacity Fees. 4) Mr. Batts, General Manager, introduced Mr. James M. Kelly, Director of Operations, who distributed and reviewed a report of the California Association of Sanitation Agencies (CASA) Spring Conference. Highlights included introduction of the new CASA Biosolids Program Manager Marlaigne Hudnall, biosolids issues, sewer system overflow issues, emerging pollutants including endocrine disrupting compounds, and the State budget woes. 5) Mr. Batts, General Manager, reported on recent public workshops for construction projects. A public workshop was held on May 1, 2003 for the Lafayette Sewer Renovation Project, Phase 4. Five members of the public attended the workshop with interest and questions about access during construction and various aspects of the construction. Member Boneysteele attended this workshop. A second public meeting was held on May 7,2003 for the Walnut Creek Renovation Project, Phase 1. Eleven people attended this workshop. Nine of the people came to discuss the sewer work and restoration on their private roads. The other two people came to discuss the tie in of their laterals on their neighbor's property. Board Members Boneysteele and Menesini attended this workshop. 6) Mr. Batts, General Manager, reported that CalTrans is beginning construction on the widening of 1-680 at Highway 4. RGW Construction of Livermore is the contractor. On April 24, 2003, District staff members Michael Penny and Steve Sauter met with RGW Construction to discuss potential conflicts with District sewers and the freeway-widening project. Subsequently, CSO located and marked a 12-inch sewer on the west side of 1-680 that was potentially in conflict with bridge piers; but it was later determined that no conflict exists. Michael Penny is working with the Survey Section to locate and mark the 84-inch sewer on the east side of 1- 680 and in Grayson Creek. Construction in Grayson Creek cannot start until June 15, 2003 so there is still time to do this work. All of the construction is expected to stay within the existing CalTrans right-of-way and will not have any impact on other District facilities. Mr. Batts, General Manager, reported that further investigation of the April 18 fire at the San Ramon Pumping Station confirms that the fire resulted from the contractor's field change. The engineer has determined that proper installation of an approved thimble will protect the roof. It is not necessary to use a non-combustible roof; however, the engineer is examining the method and cost of providing a non-combustible roof in the vicinity of the engine generator exhaust roof penetration. Mr. Batts, General Manager, reported that construction on the Collection System Spot Repair Project is progressing very well. With 50 percent of the allotted contract time elapsed, the contractor D'Arcy & Harty Construction has completed nearly 90 percent of the work. In addition to the original contract work, the contractor has also completed four additional spot repairs found during construction, including replacing 30 ,r~ G~ò U~ 9) 10) 11 ) b. 213 feet of 12-inch vitrified clay pipe in Broadway, Walnut Creek. The 12-inch sewer had numerous longitudinal cracks and it was feared to be near collapse. Repairs to the line were completed within one week of discovery. To further reduce the backlog of outstanding spot repairs, seven more sites have been added to the contract work. Mr. Batts, General Manager, announced that the District is advertising for bids for the Walnut Creek Sewer Renovations Project, Phase 1. The project consists of renovating approximately 5,000 feet of sewers ranging in size from 8- to 12-inch throughout the City of Walnut Creek and the unincorporated area. The engineer's estimate for the project is $1,100,000. The City of Walnut Creek has requested inclusion of an 18- inch storm drain at Bonanza and Mt. Diablo Boulevard in the project. Staff is currently working on a joint powers agreement with the City, and will request Board approval of the joint powers agreement at a future Board Meeting. Mr. Batts, General Manager, announced that the District is advertising for bids for the Lafayette Sewer Renovation Project, Phase 4. This work will replace approximately 10,000 feet of sewer primarily in the City of Lafayette. The engineer's estimate for the work is $1,200,000. Mr. Batts, General Manager, reported that on May 1, 2003, the Contra Costa County Superior Court issued an Order of Possession for easements for the Wendt Ranch Offsite Sewer on the Siu and Richards/Brockman properties effective June 2, 2003. Staff and Special Counsel Richard Rypinski will meet with the Siu's and their attorney tomorrow to continue the settlement negotiations. Work on this sewer will proceed as planned in June. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT 1) d. Ms. Joyce E. Murphy, Secretary of the District, announced that the District has received form letters signed by Public Employees Union Local 1 members concerning labor negotiations. A copy was distributed. The letters are available for Board review. BOARD MEMBERS 1) 2) Member Menesini reported on the April 21,2003 Contra Costa Special Districts Association meeting at which the major topics of discussion were how to select an attorney and the State budget situation. Member Hockett, member of the Household Hazardous Waste Committee, reported that on April 23, 2003 she and Member Lucey met with representatives of the Central Contra Costa Solid Waste Authority (CCCSW A) regarding household hazardous waste and electronic waste mobile collection events. Copies of the handouts from the meeting (HHW Program Participation and Cost and Bay Area HHW Program Comparison - April 2003) were distributed. It was noted that Assembly Bill 20 has to do with funding for electronic waste and puts the responsibility on the manufacturers so this issue may be taken care of in the future. Member Hockett stated that this was a productive meeting, and CCCSWA may be submitting a proposal for the Board's consideration. 05 08 03 214 BREAK At 4:06 p.m., President Nejedly declared a recess, reconvening at the hour of 4:20 p.m. with all parties present as previously designated with the exception of Member Hockett. a. 8. ENGINEERING AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT FOR THE CITY OF ORINDA TO INDEMNIFY AND HOLD THE DISTRICT HARMLESS FOR CONSTRUCTION OF JOB 5497, A MAIN SEWER EXTENSION PROPOSED BY PROPERTY OWNERS IN THE EL TOYONAL AREA Mr. Batts, General Manager, stated that property owners on Camino del Cielo, a private road off EI Toyonal in Orinda, have applied to extend a public main sewer to serve their property. The sewer will run up EI Toyonal through an area that shows some slope stability distress. The District has declined to issue a permit for the main extension until the slope distress issue is addressed. The City of Orinda has designed a slope stability improvement project for the area that is scheduled for construction in late summer or fall of 2003. The property owners and the City want the sewer to be installed before the slope stability work to facilitate coordination of the contractors, to allow construction of one new home and remodeling of another this year, and to avoid trenching in a newly paved road. The City has offered to indemnify the District for any claims arising from having the sewer project precede the City's work. Staff believes that the recommended agreement adequately addresses District concerns and would allow the sewer extension project to proceed this construction season. It was moved by President Nejedly and seconded by Member Boneysteele, that the General Manager be authorized to execute an agreement for the City of Orinda to indemnify and hold the District harmless for claims regarding Job 5497, a main sewer extension proposed by property owners in the EI Toyonal area. There being no objection, the motion was approved with Members Lucey and Hockett being absent. 9. HUMAN RESOURCES APPROVE THE STAFFING PLAN FISCAL YEAR 2003-2004 a. Mr. Batts, General Manager, stated that the Board is requested to approve the Staffing Plan for fiscal year 2003-2004. Staff recently met with representatives of Local 1 to discuss the Staffing Plan, and subsequently received the letter attached to the position paper listing a number of positions and salary increases that are part of Local 1 's demands in negotiations. Those demands are appropriate for negotiations, and should not be considered as part of the Staffing Plan. It was moved by President Nejedly and seconded by Member Menesini, that the Staffing Plan for fiscal year 2003-2004, Items 1 through 13 listed in the position paper, be approved. There being no objection, the motion was approved with Members Lucey and Hockett being absent. b. ADOPT MEMORANDUM OF UNDERSTANDING BETWEEN THE DISTRICT AND THE MANAGEMENT SUPPORT/CONFIDENTIAL GROUP, EFFECTIVE APRIL 18,2003 THROUGH APRIL 17,2009 This item was taken out of order earlier in the agenda. 10. REAL PROPERTY a. ACCEPT REPORT AND PROVIDE DIRECTION TO STAFF REGARDING THE LEASE OF DISTRICT PROPERTY Mr. Batts, General Manager, stated that at the last Board Meeting, President Nejedly requested that staff provide an update on lease income opportunities for the Kiewit and Lagiss properties. Mr. Batts introduced Mr. Randall M. Musgraves, Director of 05 08 O. ~.. ;. ;j 215 Administration. Using a map, Mr. Musgraves described the locations of the Kiewit and the Lagiss parcels. Mr. Musgraves provided an overview of the current property leases and income totaling $403,410 per year, noting~hat the list was not a comprehensive list of all District property. Mr. Musgraves stated that the goal is to increase lease revenue to $1 million per year. The District has contracted with David Deutscher and Larry Hazard for property management services. At 4:24 p.m., Member Hockett returned to the meeting. Mr. Musgraves stated that the District's strategy is to lease its property balancing the following criteria in priority order: . Lease income Property maintenance costs Property capital improvement costs Public access (buffer zone) Environmental impact Community concerns (traffic, noise, odors, sightliness of use) Recycled water usage . . . . . . Mr. Musgraves discussed the Lagiss property, noting that it was purchased for buffer. Mr. Musgraves reviewed a slide showing six options (keep uses the same, agricultural farming, public use, low commercial, medium commercial, and high commercial) and a criteria rating for each use. Property lease proposals have been received from for an auto flea market, Grower's Resource (greenhouses), tree wholesaler (chipping for ground cover, firewood processing), and Contra Costa Topsoil (to move to the Kiewit property). Mr. Musgraves stated that the Board's guidance is needed with regard to the goal, criteria, and priorities; and the Board's preferred use options. Discussion followed with regard to potential uses, lease term, and cost and responsibility for improvements. President Nejedly stated the consensus of the Board that this matter be discussed again in the fall and that proposals be brought to the Board for consideration at that time. 11. APPROVAL OF MINUTES a. MINUTES OF ADJOURNED REGULAR MEETING OF APRIL 10, 2003 MINUTES OF REGULAR MEETING OF APRIL 17,2003 b. It was moved by Member Menesini and seconded by Member Boneysteele, that the minutes of the adjourned regular meeting of April 1 0, 2003 and the minutes of the regular meeting of April 17, 2003, be approved as presented. There being no objection, the motion was approved with Member Lucey being absent. 12. APPROVAL OF EXPENDITURES a. EXPENDITURE LIST DATED MAY 8, 2003 President Nejedly, member of the Budget and Finance Committee, stated that he and Member Lucey reviewed the expenditures. It was moved by President Nejedly and seconded by Member Boneysteele, that the Expenditure List dated May 8, 2003, including Self Insurance Check Nos. 102006- 102007, Running Expense Check Nos. 144246-144398, and Sewer Construction Check Nos. 25544-25568, be approved as recommended. There being no objection, the motion was approved with Member Lucey being absent. 05 08 03 216 13. BUDGET AND FINANCE a. RECEIVE MARCH 2003 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance (O&M) for the month of March 2003, noting that expenditures were $165,000 less than budget, representing a 5 percent favorable variance. Year-to-date O&M expenditures were less $2.8 million less than budget, representing a 9.4 percent favorable variance. Year-to-date O&M revenues were $19,650,000. Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $13,630,000, $3 million less than expenditures of $16,618,000. Ms. Ratcliff reported that the District's temporary investments were held in Treasury bills, commercial paper, and the District's Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF account through March 2003 was 1.9 percent. President Nejedly declared that the March 2003 Financial Statements were duly received. 14. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 15. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 16. CLOSED SESSION EXISTING LITIGATION a. The closed session was held to discuss existing litigation pursuant to Government Code Section 54956.9(a). The title of the litigation to be discussed was Central Contra Costa Sanitary District (CCCSD) v. Orinda Moraga Disposal Service, Inc., (Doug Lomow) et al - Contra Costa Superior Court No. C96-00562. 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, Human Resources Manager Cathryn Freitas, and Secretary of the District Joyce E. Murphy, and the pertinent employee organizations are the Central Contra Costa Sanitary District Employees Association Local 1 and the Management Group. At 5:02 p.m., President Nejedly declared the closed session to discuss existing litigation pursuant to Government Code Section 54956.9(a) as noted above and labor negotiations pursuant to Government Code Section 54957.6 as noted above. At 6:12 p.m., President Nejedly concluded the closed session and reconvened the meeting into open session. 17. REPORT OF DISCUSSIONS IN CLOSED SESSION As a result of discussions in closed session concerning Item 16.a., Existing Litigation, CCCSD v. Orinda Moraga Disposal Service, Inc., (Doug Lomow) et al- Contra Costa Superior Court No. C96-00562, the Board authorized the filing of a complaint in the Lomow bankruptcy to prefect the District's judgment against Lomow. 05 08 00 r,~ Û 18. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at the hour of 6:13 p.m., to reconvene at 2:00 p.m. on Thursday, May 22, 2003 for an Adjourned Regular Board Meeting. COUNTERSIGNED: C. Pr .ttent of the Board Dire ors, Central Contra Costa Sanitary District, County of Contra Costa, State of California 05 08 217 03