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HomeMy WebLinkAboutBOARD MINUTES 10-15-09 MINUTES OF THE SPECIAL JOINT MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD AND CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY BOARD HELD ON OCTOBER 15, 2009 The District Board of the Central Contra Costa Sanitary District convened in a special joint meeting of the Central Contra Costa Sanitary District Board and Central Contra Costa Sanitary District Facilities Financing Authority Board at its regular place of business, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, October 15, 2009. President Nejedly called the meeting to order and asked the Secretary to 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. CONSENT CALENDAR It was moved by Member Lucey and seconded by Member McGill to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve expenditures dated October 15, 2009. Reviewed by Budget and Finance Committee. b. Approve minutes of September 17, 2009 Board meeting. c. Accept the contract work for the Headworks and Mechanical Shop Roofs, District Project 7211, completed by Best Contracting Services, and authorize filing of the Notice of Completion. d. Accept the contract work for the A-Line Relief Interceptor, Phase 2A, District Project 5980, completed by Mountain Cascade, Inc., and authorize filing of the Notice of Completion. Book 59 – Page 107 Board Minutes of October 15, 2009 e. Adopt Resolution 2009-097 accepting a grant of easement in the city of Orinda from Mary C. Searby, Job 29, Parcel 17, and authorize staff to record documents with the Contra Costa County Recorder. f. Adopt Resolution 2009-098 accepting an offer of dedication from Stephen Barbata for an easement in the city of Walnut Creek, Job 5732, Parcel 4, and authorize staff to record documents with the Contra Costa County Recorder. g. Adopt Resolution 2009-099 accepting an offer of dedication from Golden Buffalo, LLC for an easement in the town of Danville, Job 5736, Parcel 1, and authorize staff to record documents with the Contra Costa County Recorder. h. Adopt Resolution 2009-100 accepting an offer of dedication from Golden Buffalo, LLC for an easement in the town of Danville shown on the map of minor subdivision MS 851-2003, Job 5795, Parcel 1, and authorize staff to record documents with the Contra Costa County Recorder. i. Adopt Resolution 2009-101 accepting an offer of dedication from Montkarl, LLC for an easement in the town of Danville shown on the map of minor subdivision MS 858-2000, Job 5795, Parcel 2, and authorize staff to record documents with the Contra Costa County Recorder. j. Approve expansion of the pharmaceutical collection program and authorize the General Manager to execute Memoranda of Understanding with the City of Clayton, City of Concord, Town of Danville, City of Martinez, Town of Moraga, and City of Orinda to be partners in the District’s pharmaceutical collection program. k. Authorize the General Manager to execute property restoration and loss of revenue compensation agreements with Buchanan Fields Golf Course, Inc. for activities related to the A-Line Phase 2A Relief Interceptor, District Project 5980. 4. HEARINGS a. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED UNCODIFIED ORDINANCE TO ESTABLISH REIMBURSEMENT FEES FOR SANITARY SEWER FACILITIES IN ALHAMBRA VALLEY: DISTRICT PROJECT 5919 (ALHAMBRA VALLEY TRUNK SEWER AVAD 2007-1); AND JOBS 6412 (MONTEIRA AVAD 2007-4); 6439 (RELIEZ VALLEY AVAD 2007-3); 6441 (QUAIL AVAD 2007-6); AND 6442 (GORDON/MILLTHWAIT AVAD 2007-2) General Manager James Kelly stated that five of the Alhambra Valley Assessment District (AVAD) projects have been completed. The Board is being asked to establish reimbursement fees for properties that did not voluntarily participate. These fees will be payable to the District when these non-participating properties connect to the public sewer system. Book 59 – Page 108 Board Minutes of October 15, 2009 Environmental Services Principal Engineer Jarred Miyamoto-Mills stated that five AVAD sewers have been completed, and assessments for participants were previously established by the Board. Today’s public hearing is to consider reimbursement fees to charge non-participants when they connect to the AVAD public sewers. He listed the fees for each AVAD. The public hearing was opened and closed without comments. It was moved by Member Hockett and seconded by Member Menesini to adopt Uncodified Ordinance 257 establishing reimbursement fees for sanitary sewer facilities in Alhambra Valley: District Project 5919 (Alhambra Valley Trunk Sewer AVAD 2007-1); and Jobs 6412 (Monteira AVAD 2007-4); 6439 (Reliez Valley AVAD 2007-3); 6441 (Quail AVAD 2007-6); and 6442 (Gordon/Millthwait AVAD 2007-2). Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER General Manager James Kelly requested that Item 8 be taken immediately after Item 6. 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $8,455,000 TO BOBO CONSTRUCTION, INC., THE LOWEST RESPONSIVE BIDDER; AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AMENDMENTS TO EXISTING PROFESSIONAL SERVICES AGREEMENTS WITH CALPO HOM & DONG, DCM/GEOENGINEERS, AND SWINERTON MANAGEMENT AND CONSULTING IN AMOUNTS NOT TO EXCEED $470,000, $52,000, AND $115,000, RESPECTIVELY, FOR THE CONSTRUCTION OF THE COLLECTION SYSTEM OPERATIONS DEPARTMENT (CSOD) ADMINISTRATION, CREW, AND WAREHOUSE FACILITY, DISTRICT PROJECT 8208 General Manager James Kelly stated that, on October 6, 2009, bids were opened for the Collection System Operations Division Administration, Crew and Warehouse Facility. Due to the very competitive bid climate, a total of twenty-one bids were received and all were below the Engineer’s Estimate of $13 million. Fourteen bids were under $9 million, and the low bid was $8,455,000. The close grouping of the bids indicates a very complete set of bid documents was prepared by District staff and consultants. A protest was lodged by the second low bidder and is discussed in a memorandum provided to the Board. Staff and District Counsel reviewed the contents of the protest and found the discrepancies in the low bid that were noted by the protesting contractor to be immaterial. Therefore, staff is recommending that the Board Book 59 – Page 109 Board Minutes of October 15, 2009 deny the bid protest and award the contract to the lowest responsive bidder, Bobo Construction, Inc. It was moved by Member Menesini and seconded by Member Hockett to reject the bid protest submitted by Reeve-Knight Construction. Motion passed by unanimous vote of the Board. It was moved by Member Hockett and seconded by Member Menesini to award a construction contract in the amount of $8,455,000 to Bobo Construction, Inc., the lowest responsive bidder; to authorize the General Manager to execute the contract documents subject to submittal requirements; and to authorize the General Manager to execute amendments to existing professional services agreements with Calpo Hom & Dong, DCM/Geoengineers, and Swinerton Management and Consulting in amounts not to exceed $470,000, $52,000, and $115,000, respectively, for the construction of the Collection System Operations Department (CSOD) Administration, Crew, And Warehouse Facility, District Project 8208. Member Menesini commended staff and others for their work on the project. President Nejedly stated that he will not support the motion due to the current economic climate. He stated that the District will be looking at a large rate increase in the near future. Motion passed by the following roll call vote of the Board: AYES: Members: Hockett, McGill, Menesini NOES: Members: Lucey, Nejedly ABSTAIN: Members: None 7. REPORTS a. GENERAL MANAGER 1) General Manager James Kelly announced that the District was named winner of the Laserfiche Run Smarter Award. Laserfiche provides the document imaging system used by the District to store and manage documents. The award recognizes the District's use of Laserfiche to provide specific savings, efficiency, and service benefits. The award will be accepted by Information Technology Analyst John Phillips at the Los Angeles Laserfiche Conference in January 2010. John is the project coordinator for the District's Laserfiche implementation and is the key reason that the award was received. The award includes hotel accommodations and attendance at the conference, where John will deliver a presentation describing how the District utilizes Laserfiche. Book 59 – Page 110 Board Minutes of October 15, 2009 2) General Manager James Kelly announced that Environmental Compliance Inspector II John Ortega has been awarded a scholarship by the Western States Project (WSP) to attend a three-day training in Albuquerque, New Mexico from November 2 through November 4, 2009. This training is included in the Source Control training budget for fiscal year 2009-10 but was originally identified to be held in California. Most expenses will be paid directly by the WSP (e.g. registration, hotel) while the District will pay other expenses and then be reimbursed under the WSP scholarship (e.g. travel, meals, incidentals). The total amount the District will advance for future reimbursement will be less than $800 with the potential for up to $100 of the expenses not being covered by the WSP scholarship and therefore paid by the District. 3) General Manager James Kelly announced that, as part of its on-going efforts to cost-effectively evaluate and identify problems within the collection system, the District is conducting a pilot smoke testing project in three areas in Orinda involving approximately 21,000 feet of sewer. The smoke testing work will be performed by Veolia Environmental Services. The goal of smoke testing is to identify breaks in mains and private laterals, illegal connections such as roof leaders or storm drains, and deficient plumbing in residences. If identified, these conditions could reduce infiltration and inflow in the future. Correction would be addressed by future District projects or code enforcement. Smoke testing entails releasing a non-toxic, non-staining, and odorless smoke that is harmless to humans, animals, and material goods into the sewer system. The smoke moves through the sewer lines and will exit from any breaks in the line, from any collapsed sewers, or illegal connections. District staff will be present to address any issues that may arise. Notification letters were sent to the affected homeowners and door hangers will be distributed prior to the work. The Orinda Moraga Fire Department has been notified and will be updated on daily basis. The work is scheduled to begin on Wednesday, October 14, 2009 and will last for up to one week. Staff will report back to the Board on the results of the testing at a future Board Meeting. 4) General Manager James Kelly announced that the County Board of Supervisors voted to approve the Clean Water Program (CWP) Agreement renewal at their October 6, 2009 meeting. According to CWP staff, the participating cities need to sign a resolution before the agreement can be finalized. Unfortunately, due to a reassignment within the County Counsel's office, the drafting of this resolution has been delayed. CWP staff is working to finalize the agreement this month, but an actual date is uncertain at this time. Source Control staff continue to work on program initiatives (conducting dental inspections, initiating Best Management Practice (BMP) permit program for vehicle service facilities Book 59 – Page 111 Board Minutes of October 15, 2009 including follow-up site inspections). CWP staff has been informed that due to the extended delays in processing the agreement renewal, the annual inspection goals for the cities may not be met this fiscal year. 5) General Manager James Kelly announced that staff requested proposals from a dozen certified arborists to provide consulting services during design and construction of collection system projects. Six proposals were received and evaluated, and staff has selected the following three arborists based on experience, work product and cost: Joseph McNeil Arborists Tree Wise Horticultural Services Staff is proceeding to negotiate blanket agreements (under $50,000) with each of the three firms which will be in place through June 30, 2012. Work assignments will be made on the basis of availability, cost, and required expertise. The use of these blanket agreements will enable staff to cost-effectively respond to residents and city requests for evaluating and protecting trees on District projects. 6) General Manager James Kelly announced that, last year, staff attempted to replace the existing sewer main within the Green Street Neighborhood in Martinez in order to avoid continued overflows. Although most property owners supported the sewer project, staff could not obtain the necessary land rights from all nine property owners, and the project was placed on hold so alternatives could be considered. Since then, staff has completed their evaluation of the alternatives and has determined that the best renovation approach continues to be replacing the sewer and obtaining new easements from the same nine properties. Staff is ready to revisit the site to perform additional survey and design work. Staff is advising the Board, since some property owners may be concerned that we are coming back into their neighborhood. Staff will be updating the Board at a future meeting regarding the planned approach for obtaining the necessary easements. 7) General Manager James Kelly announced that, at the October 14, 2009 Contra Costa County Employees’ Retirement Association (CCCERA) Board of Directors meeting, CCCERA staff and the Actuary were directed to “depool” assets and liabilities by employer, retrospectively to December 31, 2008. The impact of this change will be reflected in the next rate study for implementation in 2010-11. Once CCCERA releases the “depooling” data and impacts in December 2009, staff will inform the Budget and Finance Committee and Board of the impact to the District. Even though this is a significant change, staff Book 59 – Page 112 Board Minutes of October 15, 2009 does not believe that there will be a significant financial impact to the District at this time. That said, the consultant hired to review this issue has commented to staff that it is very difficult to absolutely know the financial impact at this time because only the CCCERA Actuaries have the data. 8) General Manager James Kelly announced that the first storm of the season arrived on October 13, 2009, producing 3.9 inches of rain at the treatment plant. The peak flow during the storm was slightly over 140 million gallons per day (MGD). At the peak flow, 80 MGD was treated in the secondary process and 60 MGD was bypassed to the holding basins. This was the largest storm in October in many years. Approximately 11 million gallons of primary effluent was bypassed to the holding basins. All of the bypassed flows have been drained back and processed. The treatment plant had no major incidents. However, there were several roof leaks and some localized flooding. The treatment plant remained in compliance with all of the National Pollutant Discharge Elimination System requirements during the storm event. The pumping stations performed well during the rain event. For the period of the storm, the rainfall recorded at the pumping stations was 3.7 inches in Martinez, 3.5 inches in Sam Ramon, 5.2 inches in Moraga, and 5.0 inches in Orinda Crossroads. A diesel-driven wet weather pump was utilized at Orinda Crossroads. Electrically-driven wet weather pumps were utilized at Martinez, Lower Orinda, and San Ramon. There were no callouts for pumping stations personnel and only one for Collection System Operations Department personnel. There were no reported overflows. 9) General Manager James Kelly announced that staff has recently become aware of several products being marketed to promote disposal of pet waste to the public sanitary sewer. These products fall into two categories: (1) So-called “flushable” bags that pet owners are instructed to fill with pet waste, and then flush down the toilet. The claim that these bags are “biodegradable,” and so are appropriate for flushing is problematic. Though the bags may biodegrade over time, they would likely remain intact while in the sewer system posing the risk of plugging in both the customers lateral and the public sewer. In addition, the bags could worsen the plastic waste problems at pumping stations. (2) Pet waste receptacles are for installation on customers’ cleanouts or laterals to provide for discharge of waste and flushing water directly to the public sewer. These devices range from a simple Book 59 – Page 113 Board Minutes of October 15, 2009 funnel attachment to connect directly to a cleanout (similar to an Overflow Protection Device), to more elaborate toilet-like waste flushers. The instructions for use of these receptacles include flushing them with water from a garden hose or a directly connected waterline. In some cases, users are encouraged to use these receptacles to flush the flushable bags. Staff has discussed the pet waste disposal issue with solid waste authority staff, and jointly concluded that the most environmentally appropriate disposal method for pet waste is to place it with household garbage for weekly pick up. Staff intends to discourage the discharge of pet waste to the sewer system by adding discussion of the bags and pet waste receptacles to the “don’t flush” sections in the Pipeline Newsletter and on the website at centralsan.org. In addition, permits will not be issued for installation of receptacles on customers’ laterals. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm distributed a memorandum providing an update on the Matthew Parkinen claim against the District. Mr. Alm provided an update on the recent passage of AB 474 regarding contractual assessment districts. 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 October 9, 2009 Contra Costa Council Chronic Conditions Community Health Forum. Members Hockett and McGill reported on the October 12, 2009 Recycled Water Committee meeting and summarized the Action Summary. Member McGill stated that he would like the Committee to meet more frequently. The Board accepted the report without comments. Book 59 – Page 114 Board Minutes of October 15, 2009 Member Lucey Member Lucey and President Nejedly reported on the October 12, 2009 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comments. Member McGill Member McGill provided a written report on his attendance at meetings for which he received the stipend or for which the District paid his expenses. 2) Announcements Member Menesini announced the upcoming Environmental Alliance meeting to be held on October 19, 2009. 8. BUDGET AND FINANCE a. CONSIDER AUTHORIZING THE REFINANCING OF THE OUTSTANDING EXISTING 1998 AND 2002 REVENUE BONDS General Manager James Kelly stated that, at the October 1, 2009 Board meeting, staff presented information on refinancing the outstanding 1998 and 2002 bonds which would save the District approximately $1.3 million dollars in interest expense over the remaining terms of the bonds. Also, a presentation was made by Tom Lockard, Financial Advisor from Stone and Youngberg, regarding the issuance of $33 million of new debt to help cover the costs of the Capital Improvement Plan over the next three years, and to help smooth the Sewer Service Charge Rates. Mr. Lockard discussed the pros and cons of a negotiated vs. competitive sale of new debt. Director of Administration Randy Musgraves presented information on the steps to be taken and needed decision points regarding the refinancing of old debt and issuing of new debt. It was moved by Member Menesini and seconded by Member Hockett to authorize the refinancing of the outstanding existing 1998 and 2002 Revenue Bonds as recommended. Motion passed by unanimous vote of the Board. b. CONSIDER AUTHORIZING THE ISSUANCE AND SALE OF REVENUE CERTIFICATES OF PARTICIPATION FOR CENTRAL CONTRA COSTA SANITARY DISTRICT IN AN AMOUNT NOT TO EXCEED $33 MILLION President Nejedly noted that the District did not adopt a rate increase this year. He expressed a preference for a “pay-as-you-go” philosophy rather than incurring new debt, stating that the District is financially sound at this time. He expressed concern that issuing $33 million in new certificates may jeopardize that stability. Book 59 – Page 115 Board Minutes of October 15, 2009 Member Menesini disagreed, stating that the economic climate is favorable and the proposed actions could save the District money. It was moved by Member Hockett and seconded by Member Menesini to authorize the issuance and sale of Revenue Certificates of Participation for Central Contra Costa Sanitary District in an amount not to exceed $33 million as recommended. Motion passed by the following roll call vote of the Board: AYES: Members: Hockett, McGill, Menesini NOES: Members: Lucey, Nejedly ABSTAIN: Members: None c. ADOPT A RESOLUTION AUTHORIZING THE REFINANCING OF THE EXISTING 1998 AND 2002 REVENUE BONDS, OR ADOPT A RESOLUTION AUTHORIZING BOTH THE REFINANCING OF EXISTING REVENUE BONDS OF APPROXIMATELY $25 MILLION AND THE ISSUANCE AND SALE OF A MAXIMUM OF $33 MILLION IN REVENUE CERTIFICATES OF PARTICIPATION, USING EITHER A NEGOTIATED OR COMPETITIVE SALE, AND AUTHORIZING OTHER NECESSARY ACTIONS; AND AUTHORIZING STAFF TO EXECUTE THE APPROPRIATE DOCUMENTS It was moved by Member Menesini and seconded by Member Hockett to adopt Resolution 2009-102, authorizing both the refinancing of existing 1998 and 2002 Revenue Bonds and the issuance and sale of new Revenue Certificates of Participation as recommended, using a negotiated sale. Motion passed by the following roll call vote of the Board: AYES: Members: Hockett, McGill, Menesini NOES: Members: Lucey, Nejedly ABSTAIN: Members: None d. ADJOURN SPECIAL BOARD MEETING AND RECONVENE IN A SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY (CCCSDFFA). ADOPT A RESOLUTION OF THE CCCSDFFA AUTHORIZING THE ISSUANCE AND SALE OF 2009 REVENUE CERTIFICATES OF PARTICIPATION IN AN AMOUNT NOT TO EXCEED $58 MILLION, WHICH INCLUDES $25 MILLION IN REFINANCING EXISTING REVENUE BONDS AND THE ISSUANCE AND SALE OF UP TO $33 MILLION IN REVENUE CERTIFICATES OF PARTICIPATION President Nejedly adjourned the Board meeting and passed the gavel to Member Lucey, Chair of the Central Contra Costa Sanitary District Facilities Financing Authority. It was moved by Member Menesini and seconded by Member Hockett to adopt Resolution 2009-01 of the Central Contra Costa Sanitary District Facilities Financing Book 59 – Page 116 Board Minutes of October 15, 2009 Authority authorizing the issuance and sale of 2009 Revenue Certificates of Participation in an amount not to exceed $58 million, which includes $25 million in refinancing existing Revenue Bonds and the issuance and sale of up to $33 million in Revenue Certificates of Participation. Motion passed by the following roll call vote of the Authority: AYES: Members: Hockett, McGill, Menesini NOES: Members: Nejedly, Lucey ABSTAIN: Members: None e. RECEIVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 The statements were reviewed by the Budget and Finance Committee. Mr. John Cropper of Cropper Accountancy Corporation presented an overview of the audited financial statements. He stated that the District’s total ending net assets increased by $10.1 million, or 1.67 percent in 2008-09, when compared to Fiscal Year 2007-08. Total revenues were $82.6 million in 2008-09, compared with $82.2 million in 2007-08. Total 2008-09 expenses were $78.8 million, compared to $75.0 million in 2007-08. Capital contributions decreased from $10.7 million in 2007-08 to $6.3 million in 2008-09. He stated that this year GASB 45 has been formally implemented in the District’s financial statements. The Board has been providing $560,000 per month for GASB 45. He pointed out that this amount, however, may need to be increased. He concluded that there were no deficiencies or recommendations for improvements in internal controls this year. In accordance with Government Code Section 53891, information from the audit will be used to prepare a report to be sent to the Sate Controller’s Office. The audited financial statements are also sent to the County Auditor-Controller, Contra Costa County Board of Supervisors, and Bond Rating Agencies. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member McGill suggested that an analysis be presented comparing historical peak storm information. General Manager James Kelly offered to combine it with a presentation on the Collection Systems Master Plan at an upcoming Board meeting. Book 59 – Page 117 Board Minutes of October 15, 2009 Member Hockett requested a report on current or pending legislation/regulations pertaining to storm drains and the responsibility for their maintenance. ' 11. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 2:52 p.m. ~unr.w ~ ~/~i.i~ J s A. Nejedly President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: _~~,-- - -.~~ Eiaine~R. Bo~hme `~ = ~- Secretary of-the Central Contra Costa -~'`~-.Sanitary District, County of Contra Costa, ~State~~f D_alifornia 1 1 Book 59 -Page 118