Loading...
HomeMy WebLinkAboutBOARD MINUTES 09-03-09 MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 3, 2009 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of business, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, September 3, 2009. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, Lucey, McGill, Menesini, Nejedly ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF NATIONAL ASSOCIATION OF CLEAN WATER AGENCIES (NACWA) PLATINUM 11 PEAK PERFORMANCE AWARD Following a brief presentation by Plant Operations Division Manager Randy Grieb, the Board accepted the NACWA Platinum 11 Peak Performance Award and commended District staff for their work. b. CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA) 2009 TECHNICAL ACHIEVEMENT AWARD FOR THE AERATION AIR RENOVATIONS PROJECT Following a brief presentation by Senior Engineer Ba Than, the Board accepted the CASA 2009 Technical Achievement Award and commended District staff for their work. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member McGill to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. Book 59 - Page 76 Board Minutes of September 3, 2009 a. Approve expenditures dated September 3, 2009. Reviewed by Budget and Finance Committee. b. Approve minutes of August 6, 2009 Board meeting. c. Adopt Resolution 2009-054 establishing the Sewer Construction Fund appropriations limit in the amount of $78,814,305 for the 2009-2010 Fiscal Year, in accordance with Article XIII B of the California Constitution; and select the change in the California per capita personal income percentage for use in computing the appropriations limit. Approval recommended by Budget and Finance Committee. d. Adopt Resolution 2009-055 accepting grants of easements in the unincorporated area of Martinez, Job 5889 – Parcels 2 and 3, from Randal E. and Karin F. Wonnenberg, trustees of the Wonnenberg Trust, and John D. Curtis, and authorize staff to record documents with the Contra Costa County Recorder. e.Adopt Resolutions 2009-056 and 2009-057 accepting a grant of easement from the Presbytery of San Francisco, and authorizing execution of a quitclaim deed to the Presbytery of San Francisco regarding the property at 1601 Mary Drive, Pleasant Hill, District Project 4985, Parcels 22 and R-22, and authorize staff to record documents with the Contra Costa County Recorder. f. Adopt Resolution 2009-058 accepting offers of dedication from Contra Costa Real Estate Investors, LLC for easements in the unincorporated area of Danville, Job 5436, Parcels 4 through 6, and authorize staff to record documents with the Contra Costa County Recorder. g. Adopt Resolution 2009-059 accepting an offer of dedication from Shapell Industries, Inc. for an easement in the unincorporated area of Danville, Job 5436, Parcel 7, and authorize staff to record documents with the Contra Costa County Recorder. h. Adopt Resolution 2009-060 accepting an offer of dedication from Shapell Industries, Inc. for an easement in the unincorporated area of Danville, shown on the map of subdivision 8002, Job 5436, Parcel 8, and authorize staff to record documents with the Contra Costa County Recorder. i. Adopt Resolution 2009-061 accepting an offer of dedication from the 2000 Rhett Family Trust for an easement in the town of Danville shown on the map of subdivision 9058, Job 6404, Parcel 1, and authorize staff to record documents with the Contra Costa County Recorder. Book 59 - Page 77 Board Minutes of September 3, 2009 j. Adopt Resolution 2009-062 accepting an offer of dedication from Centex Homes for an easement in the city of San Ramon shown on the map of subdivision 9019, Job 6405, Parcel 1, and authorize staff to record documents with the Contra Costa County Recorder. k. Adopt Resolution 2009-063 accepting an offer of dedication from Braddock & Logan Group III LP for an easement in the unincorporated area of Walnut Creek shown on the map of subdivision 8939, Job 6416, Parcel 1, and authorize staff to record documents with the Contra Costa County Recorder. l. Adopt Resolution 2009-064 approving the revised 401(a) Money Purchase Plan document. Reviewed by Budget and Finance Committee. m. Adopt Resolution 2009-065 to approving the revised Section 457 Deferred Compensation Plan document. Reviewed by Budget and Finance Committee. n. Accept the contract work for the Miner Road Trunk Sewer Improvement Project, District Project 5951, completed by Insituform Technologies, Inc., and authorize filing of the Notice of Completion. o. Authorize an extended medical leave of absence without pay for Engineering Assistant II Erika Liskamm through December 3, 2009. p. Deny request for extended medical leave of absence without pay for John Censoplano, Network Coordinator. Denial of request recommended by Human Resources Committee. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 6. REPORTS a. GENERAL MANAGER 1) Sewer Service Charge Considerations Acting General Manager Ann Farrell reported on the sewer service charge and advantages and disadvantages of bond financing. She stated that, to process a sewer service charge increase retroactively and to bill customers this year, no Proposition 218 mailing would be needed if a sewer service charge increase of no more than $10 were proposed. A new public hearing would be necessary and rates would have to be collected via a special mailing from the County, which would cost approximately $12 per parcel - $2 Book 59 - Page 78 Board Minutes of September 3, 2009 more than the maximum noticed sewer service charge increase. This is not recommended. To raise the sewer service charge retroactively and to bill customers next year, no Proposition 218 mailing would be needed if a sewer service charge increase of no more than $10 were proposed. A new public hearing would be necessary and rates would be collected on next year’s tax bill at an additional cost if a separate line is used. This is also not recommended. The recommended approach is to issue a new Proposition 218 notice for next fiscal year (2010-11) and hold a public hearing, to include the raise from this year, explaining that the proposed sewer service charge increase is partly due to the property tax take by the State in FY 2009-10. She pointed out that revenues continue to decline: there was no sewer service charge increase in 2009-10, a partial loss of ad valorem tax, deferral of connection fees, reduced development fees, and low interest return on investments. The projected sewer service charge increases are growing, and expected to be approximately $30 per year over the next several years, even with some projects deferred. The amount would rise to $40 increase per year if projects were not deferred. With regard to bond financing, advantages include allowing the District to take advantage of the extremely competitive bid climate by moving forward with capital projects and reducing the needed sewer service charge increase. Bond financing would also allow the costs to be spread over current and future rate payers for long-lived projects, instead of having current rate payers bear the entire cost. Disadvantages include a significant increase in the total project cost due to the interest paid on the bonds, and debt repayment can become a financial burden. She stated that the District has historically made prudent use of bond sales, with a preference for the “pay as you go” approach. She stated that staff recommends returning to the Board at the September 17, 2009 Board meeting with the sewer service charge required under a range of scenarios for Board review and discussion. Member Lucey stated that the Budget and Finance Committee reviewed the bond issue, and recommended against using bond financing to pay for capital projects. Member Menesini stated that he would entertain the possibility of issuing bonds as he would prefer not to defer capital projects. He asked to see some alternatives and scenarios. Book 59 - Page 79 Board Minutes of September 3, 2009 President Nejedly stated that he supports the “pay as you go” approach. Member McGill stated that he supports the concept of using bond financing to fund certain capital projects and would like to see the various scenarios. The Board directed staff to return to the Board with sewer service charge increases required under different capital projects bond-financing scenarios. They also directed staff to return with resolutions to allow possible retroactive bond funding of several major capital projects under construction. 2) Acting General Manager Ann Farrell announced that staff will meet with Maylin Jue (Case Manager) and Philip Farah (Assistant Director of Applied Research and Method) from the Government Accountability Office (GAO) at 1 p.m. on Wednesday, September 23, 2009, to discuss how the District sets rates and makes decisions about changing rates, asset management process, past experiences with debt financing - including the State Revolving Fund (SRF) program, and issues considered when making decisions about debt financing for upcoming capital improvements. The GAO is currently looking at several financing options for wastewater infrastructure at the request of Representative Mica from the House Committee on Transportation and Infrastructure. The GAO has been asked to examine the advantages and disadvantages of various financing options, as well as barriers to their implementation. As part of their work, they are visiting several states to examine the challenges that municipalities face in identifying and accessing sources of financing for wastewater infrastructure projects. 3) Acting General Manager Ann Farrell announced that a ribbon-cutting ceremony celebrating the changeover from pump station to the A-Line Gravity Interceptor was held at the City of Concord pump station on August 26, 2009. Those in attendance included District Board Members Michael McGill and Barbara Hockett; County Supervisor Susan Bonilla; and Concord Mayor Laura Hoffmeister, City Manager Dan Keen, and Council Members William Shin and Mark Peterson. The event also marked the retirements of Public Works Director Qamar Khan and Manager of Infrastructure Bruce Good, both of whom were involved in the A-Line Project. On Monday, August 3, 2009, Concord sewage began flowing through the new venturi meter and A-Line Relief Interceptor. Currently, about half of the total flow is passing through the A-Line and half is still being pumped by the Concord pump station. The work required to divert all the flows is occurring during the low flow periods, late night - early morning. The Book 59 - Page 80 Board Minutes of September 3, 2009 diversion of all the flows into the new A-Line Relief Interceptor is expected to be completed this week. 4) Acting General Manager Ann Farrell announced that the Contra Costa Historical Society’s Exhibit on the history of the District opened on Monday, September 1, 2009, at the History Center located at 601 Main Street in Martinez. The exhibit is open through the end of November on Tuesdays, Wednesdays, and Thursdays from 10 a.m. to 4 p.m. A reception is scheduled for Sunday, September 13, 2009 from 3 p.m. to 5 p.m. Invitations have been sent to County and City officials, the Martinez Chamber of Commerce, and the families who were part of the Alhambra Valley Project. nd 5) Acting General Manager Ann Farrell announced that the 82 Annual Water Environmental Federation Technical Exhibition and Conference (WEFTEC) will be held in Orlando, Florida at the Orange County Convention Center from October 10 through October 14, 2009. This year, no employees from the District will attend. 6) Acting General Manager Ann Farrell announced that, on Wednesday, August 26, 2009, contractors began installation of piles for the new sludge truck loading facility. The pile driving activities will continue until approximately September 4, 2009. This activity, by its very nature, will be noisy at the construction site and will generate vibrations as the hammer contacts the piles. The District’s consultant and inspector will be monitoring the construction activities to make sure the noise and vibrations meet the project criteria. 7) Acting General Manager Ann Farrell announced that Tetra Tech, representing U.S. Environmental Protection Agency and S.F. Bay Regional Water Quality Control Board, contacted the District's Source Control Section to initiate a review of the District’s Source Control Ordinance (Title 10 of the District Code). Staff provided Tetra Tech with a clean copy of the current ordinance and a copy that includes the changes adopted in October 2008, indicated with strikeout/underline notations. The last Tetra Tech review of the Source Control Ordinance was during the Pretreatment Compliance Audit (PCA) conducted in January 2007. Many of the ordinance changes adopted in 2008 were in response to the findings of the 2007 PCA. Based on past practice, Tetra Tech conducting this review of the District's Source Control Ordinance would represent the agencies' oversight action for the fiscal year, so staff does not anticipate that there would be a field inspection of the pretreatment program this year. 8) Acting General Manager Ann Farrell announced that, with the August 31, 2009 City of Concord retirements, the City Manager, Daniel Keen, has Book 59 - Page 81 Board Minutes of September 3, 2009 done some official reorganization of departments. The notable change is that the Public Works and Engineering Department will be under the direction of the Public Works/City Engineer Alex Pascual since Public Works Director Qamar Khan has retired. 9) Acting General Manager Ann Farrell announced that Contra Costa County Television (CCCTV) has started to broadcast 5-minute information videos that the District has on its website. Topics covered include FOG, “Waste to Worth” about on-site cogeneration, and the Household Hazardous Waste Collection Facility. The videos serve as Public Service Announcements for the station. All of the videos were produced by the in- house Plant Operations Video Training Section and the Communication Services Division. As new videos are produced, they will be given to CCCTV for its use. 10) Acting General Manager Ann Farrell announced that a reception recognizing this year’s Pollution Prevention Award Winners will be held at 1:30 p.m. immediately prior to the September 17, 2009 Board meeting. b. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT No reports. d. BOARD MEMBERS 1) Board Member reports on future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses; recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses. Member Hockett Member Hockett reported on her attendance at the August 6, 2009 Contra Costa County Mayors’ Conference. Member Hockett reported on her attendance at the August 12 and 14, 2009 California Association of Sanitation Agencies (CASA) Executive Board Meetings and at the August 12-15, 2009 CASA Annual Conference in San Diego. Book 59 - Page 82 Board Minutes of September 3, 2009 Members Hockett and Lucey reported on the August 18, 2009 Human Resources Committee meeting and summarized the Action Summary. Board Members received the report without comments. Members Hockett and McGill reported on the August 25, 2009 Outreach Committee meeting and summarized the Action Summary. Board Members received the report without comments. CSDA Nomination of Representative As the Board Representative to the Contra Costa Chapter of the California Special Districts Association (CSDA), Member Hockett requested Board direction regarding nomination of one of the following candidates as representative to the California Special Districts Association (CSDA) Board for Region Three: ? Dr. James Kohnen (incumbent) ? Vincent C. Ferrante ? Kathryn Slater-Carter It was moved by Member Menesini and seconded by Member McGill to nominate Dr. James Kohnen as representative to the California Special Districts Association (CSDA) Board for Region Three. President Nejedly stated that he would abstain on the motion as he did not know any of the candidates and did not feel that he had sufficient information to make a recommendation. Motion passed by the following vote of the Board: AYES: Members: Hockett, Lucey, McGill, Menesini NOES: Members: None ABSTAIN: Members: Nejedly Member Lucey Member Lucey reported on his attendance at the August 12-15, 2009 CASA Conference in San Diego. Member Lucey and President Nejedly reported on the September 1, 2009 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comments. Book 59 - Page 83 Board Minutes of September 3, 2009 Member McGill Member McGill provided a written report on his attendance at meetings for which he received the stipend and for which the District paid his expenses. Member Menesini Member Menesini and President Nejedly reported on the August 24, 2009 Household Hazardous Waste Committee meeting and summarized the Action Summary. Board Members received the report without comments. 2) Announcements Member Menesini announced that the Contra Costa Historical Society Museum reception to showcase the Central Contra Costa Sanitary District history exhibition will be held on September 13, 2009. Member Menesini announced the upcoming Environmental Alliance meeting to be held on September 21, 2009, the topic of which will be “Oil Response in California.” 7. ENGINEERING a. UPDATE ON DISTRICT ANNEXATION BACKLOG ELIMINATION, AND ADOPTION OF THE FOLLOWING RESOLUTIONS OF APPLICATION TO THE CONTRA COSTA LOCAL AGENCY FORMATION COMMISSION (LAFCO): 1) Resolution of application 2009-066 to initiate Contra Costa LAFCO proceedings for District Annexation 167B, including the finding that annexation of each property in Annexation Areas 167-3, 167-4, and 167-5 is exempt from California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15319, and directing staff to conduct additional review and prepare appropriate CEQA documentation for Annexation Area 167-2 for the Board’s consideration prior to submitting a request for annexation of the area to LAFCO. 2) Resolution of application 2009-067 to initiate Contra Costa LAFCO proceedings for District Annexation 175, including the finding that annexation of each property in Annexation Areas 175-1 through 175-3 (inclusive), 175-5 through 175-7 (inclusive), and 175-9 through 175-11 (inclusive) is exempt from CEQA, and directing staff to conduct additional review and prepare appropriate CEQA documentation for Annexation Areas 175-4 and 175-8 for the Board’s consideration prior to submitting a request for annexation of these areas to LAFCO. Book 59 - Page 84 Board Minutes of September 3, 2009 Acting General Manager Ann Farrell stated that, in August 2007, a sizeable backlog of pending District annexation requests existed. In cooperation with Contra Costa LAFCO, the County Surveyor and the State Board of Equalization, a program that focused on eliminating the backlog within three years was developed. Principal Engineer Jarred Miyamoto-Mills presented a report, describing how the annexation backlog developed and how staff worked with LAFCO to reduce it. Backlogged properties are combined with adjacent and surrounding unannexed properties to eliminate islands. Once the backlog has been eliminated by the end of October 2009, a total of 990 properties will have been annexed. It was moved by Member Menesini and seconded by Member Hockett to adopt Resolutions of Application 2009-066 and 2009-067 to initiate Contra Costa LAFCO proceedings for District Annexations 167B and 175 as recommended. Motion passed by unanimous vote of the Board. b. APPROVE EXTENDING THE HOUSEHOLD HAZARDOUS WASTE COLLECTION FACILITY (HHWCF) OPERATING SCHEDULE TO INCLUDE MONDAYS ON A PERMANENT BASIS Acting General Manager Ann Farrell stated that the pilot program for opening the Household Hazardous Waste Collection Facility on Mondays concluded at the end of August. Because of the success of the program in providing improved customer access to facility services, staff and the Household Hazardous Waste Committee recommend that the Board approve extending regular operating days for the facility to include Mondays. President Nejedly, who originally requested that the facility be kept open on Mondays, stated his support for the increased operating hours and supported the recommendation to make it permanent. It was moved by President Nejedly and seconded by Member McGill to extend the HHWCF operating schedule to include Mondays on a permanent basis, the costs of the Monday operation to be spread over all District rate payers and other partners in the HHW program. Motion passed by unanimous vote of the Board. 8. CORRESPONDENCE a. RECEIVE LETTER DATED AUGUST 13, 2009 FROM EAST BAY MUNICIPAL UTILITY DISTRICT (EBMUD) BOARD PRESIDENT DOUG LINNEY REQUESTING COMMENTS ON THEIR DRAFT ENVIRONMENTAL IMPACT REPORT (EIR) AND WATER SUPPLY MANAGEMENT PROGRAM (WSMP) 2040, AND OFFERING TO ATTEND A DISTRICT BOARD MEETING Acting General Manager Ann Farrell noted that a similar letter was received earlier in the year and a presentation to the Board was made by EBMUD. Book 59 - Page 85 Board Minutes of September 3, 2009 The Board received the correspondence. 9. BUDGET AND FINANCE a. RECEIVE ADJUSTED OPERATIONS AND MAINTENANCE (O&M) JUNE 2009 YEAR-END FINANCIAL STATEMENTS Controller Deborah Ratcliff reported on the June 30, 2009 pre-audit financial statements for the Operations and Maintenance Fund. These have been reviewed and recommended for approval by the Budget and Finance Committee. She stated that revenues are less than expenses for Period 13 resulting in a deficit of ($2,626,000) which is $1,161,000 greater than the budgeted deficit and results in a greater draw down of the O&M reserve than budgeted. Total revenue for 2008-09 was $55,258,000, which is $1,773,000 less than budgeted. Total expenses for 2008-09 were $57,884,000, which is $612,000 less than budgeted. The Board received the report. b. CAPITAL IMPROVEMENT BUDGET YEAR-END REPORT Capital Projects Division Manager Tad Pilecki provided information on the Capital Improvement Budget Year-End Report. He described capital fund impacts and showed slides summarizing major project expenditure variances in the Treatment Plant Program, the Collection System Program, the General Improvements Program and the Recycled Water Program. He summarized by noting that the Sewer Construction Fund balance has been drawn down by $8,265,147 because expenditures of $41,476,409 significantly exceeded capital revenue of $33,211,262. c. REVIEW AND APPROVE THE STATEMENT OF INVESTMENT POLICY Controller Deborah Ratcliff reported that the Statement of Investment Policy has been reviewed and recommended for approval by the Budget and Finance Committee. The only change from prior years is that staff has included language in the policy to clarify that the Statement of Investment Policy does not include the GASB 45 Trust, and that the investment policy that governs the GASB 45 Trust will be brought to the Board annually in the future. It was moved by Member McGill and seconded by Member Hockett to approve the Statement of Investment Policy as recommended. Motion passed by unanimous vote of the Board. Book 59 - Page 86 Board Minutes of September 3, 2009 ' 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION a. RECEIVE REPORT ON EMERGENCY DECLARED ON MAY 21 2009 AND AUTHORIZE THE GENERAL MANAGER UNDER PUBLIC CONTRACT CODE 22050(b) TO CONTINUE WITH EMERGENCY REPAIRS ON THE RECYCLED WATER PIPELINE AT GRAYSON CREEK IN MARTINEZ. IF WORK HAS NOT BEEN COMPLETED Senior Engineer Ba Than presented an update on the emergency repairs on the recycled water pipeline at Grayson Creek. He stated that work is proceeding in accordance with encroachment permits from the Flood Control District and Contra Costa County. The contractor has installed pipe support anchors and is waiting for delivery of the supports. Completion is scheduled by September 30, 2009. It was moved by Member McGill and seconded by President Nejedly to continue the authorization for emergency repairs under Public Contract Code 22050(b). Motion passed by unanimous vote of the Board. 11. SUGGESTIONS FOR FUTURE AGENDA ITEMS None. ' 12. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:44 p.m. ,--~ .ja+~fes A. Nejedly / President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: ~~ ~~ Elaine R. Boehme Secretary of the Central Contra Costa ' Sanitary District, County of Contra Costa, State of California Book 59 -Page 87