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HomeMy WebLinkAboutBOARD MINUTES 11-12-09 MINUTES OF THE SPECIAL BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 12, 2009 The District Board of the Central Contra Costa Sanitary District convened in a special meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, November 12, 2009. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, Menesini, Lucey, Nejedly ABSENT: Members: McGill a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. 2. PUBLIC COMMENTS President Nejedly welcomed audience members Alex Pascual, Director of Public Works and Engineering Services and Mario Camorongan, Senior City Engineer from the City of Concord. 3. CAPITAL IMPROVEMENT BUDGET PLANNING WORKSHOP Director of Engineering Ann Farrell presented the preliminary proposal for Capital Expenditures for Fiscal Year 2010-11 and the Ten-Year Plan, including high priority projects and projects that are unfunded and not included in the budget because of regulatory uncertainties. Ms. Farrell stated that the Capital Plan expenditure scenario includes expenditure recommendations for 2010-2011 that are at a modest level of approximately $29 million per year. This is roughly enough to replace all assets over a one-hundred year lifetime. This includes $313 million in expenditures over the next ten years, which is reduced from $331 million in last year’s scenario. This was achieved partially by deferring projects, and partially because of the bid climate which has saved the District money on a number of recent projects. Included also is the 2009-10 bond issuance of $30 million and a recommended 2016-17 bond issuance of $32 million. Based on preliminary revenue and O&M Budget data, the annual Sewer Service Charge increase would be maintained between approximately $15 to $17 per year over the next ten years. This will be the subject of the January 2010 financial plan. Ms. Farrell described highlights of the Treatment Plant Program. The biggest project will be the Wet Weather Bypass Improvements Project. UV and outfall capacity has Book 59 – Page 128 Board Minutes of November 12, 2009 been upgraded to approximately 135 MGD. When 135 MGD is exceeded, flow must be routed to the ponds. Occasionally the ponds fill up and flow must be discharged to Walnut Creek. During a 50-year storm the flows would be so backed up from other storm water discharge that no flow could be released over the adjacent Conco property which is currently the only means of discharge. The $2.2 million Wet Weather Bypass Structure will allow discharge directly to Walnut Creek. Ms. Farrell updated the Board on Treatment Plant Program Planning and Innovations. She stated that the green house gas inventory has been completed and staff is currently developing a Green House Gas Management Plan. Information on the plan development will be presented to the Board at the November 19, 2009 Board Meeting. Ms. Farrell reported that testing is complete and results are available for the pilot testing of powdered carbon for mercury removal from incinerator air emissions and scrubber water. The amount of mercury has been reduced from 34.7 lb/yr plant influent several years ago to 11.9 lb/yr because of the mandatory dental amalgam separator program to reduce mercury. Air emissions have been reduced from 29.1 lb/yr to 9.9 lb/yr due to the dental program. An average of 80 percent removal of mercury was achieved in the powdered activated carbon pilot program, which would further reduce mercury emissions substantially if a full-scale system were installed. Sewage sludge incinerators emissions in the future may be regulated by Section 129 of the Clean Air Act instead of Section 112 making the emissions requirements for mercury, cadmium, carbon monoxide, dioxins, lead, NOX, PM, and SO2 more stringent. The extent of the possible emissions control improvements is not known and therefore not currently budgeted. Ms. Farrell reported on the Aeration Air Renovation and the correction of leaks from cracks in the aeration tank plenum. The tanks have been sealed and stabilized and the reduction in total air usage will defer the need for the $2.5 million Electric Blower Project. Ms. Farrell reported on the Treatment Plant Geographical Data Integration (GDI) which is in development. New aerial photography has been completed to increase the resolution from six inches to two inches. Treatment Plant GDI development will utilize surface features to locate underground pipes and will link to equipment information, making treatment plant information more accurate and more accessible to District staff. Ms. Farrell reviewed the Fiscal Year 2010-2011 Collection System program highlights. The program is reduced this year to make more money available for the General Improvements Program. There is approximately $10.5 million for Collection System Projects. The Collection System Master Plan is completed and listed Pleasant Hill- Pleasant Hill/Grayson Creek, Lafayette-Pleasant Hill Road, Moraga-Moraga Way, Walnut Creek-Walnut Bvld., San Ramon-San Ramon Schedule C as priority capacity projects. The highest priority projects identified in the Collection System Master Plan are budgeted in the Ten-Year Plan period and staff will be evaluating the order in which they should be constructed. Book 59 – Page 129 Board Minutes of November 12, 2009 Approximately $7 million is allotted for renovation projects in 2010-2011. Eighty-two percent of the District’s sewer lines have been TV’d. TV inspection is currently being performed in some of the newer areas in Moraga, San Ramon, and parts of Martinez. A total of 84 miles of pipe needs renovation. Given the information available, it is believed that renovation of all known deficient sewers can be completed within the Ten-Year Plan if the budgeted funds are made available. Ms. Farrell stated that the Collection System Program includes continued innovative use of trenchless technology, added functionality to state of the art geographical data integration platform for collection system, completing the Collection System Master Plan, providing road map for capacity projects needed over the next 30 years, and streamlined right-of-way acquisition process for easement jobs to ensure equitable/consistent offers. Ms. Farrell highlighted the $11 million General Improvements Program, noting that $2 million is budgeted to maintain basic programs such as Equipment, Information Technology Plan, and HOB/HHW/POD Miscellaneous Building Improvements. The budget will also fund the remainder of the Collection System Operations Building Improvements at approximately $6.5 million. $2.4 million is budgeted for Seismic Retrofit needs at 4737 Imhoff Place and the Headquarters Office Building. Over the next nine years approximately $11.8 million is allocated to seismic work needs, particularly in the Solids Conditioning Building, the Pump and Blower Building, and the Plant Operations Building. The total budgeted ten-year program is adequate for all identified seismic deficiencies. Ms. Farrell reported on the Recycled Water Program, stating that the ten-year program budget is recommended to be funded at $550,000 per year in this year’s plan. This will be reviewed again when next year’s plan is developed. This includes maintaining the basic landscape program, the Concord Landscape Irrigation Project, and continuing to promote recycled water service to the Martinez refineries. Ms. Farrell summarized that total recommended expenditures for Fiscal Year 2010-11 are $29.6 million. This continues the goal of spending a minimum of approximately 1 percent per year of facility replacement value on capital projects. This budget completes almost 100 percent of the identified sewer renovation needs in the next 10 years, funds needed seismic retrofit of District buildings, funds $46 million of the most critical collection system capacity projects, provides consistent revenue stream for treatment renovation needs, and funds the General Improvement Program. The recommended expenditure does not pay for additional incinerator emission controls over a budgeted $4 million, includes no budget for upgrades to achieve nitrification and/or nutrient removal, includes no funding for projects to reduce green house gas emissions, also includes no funding for construction of large recycled water projects. It does include $32 million in the year 2016-17 for a bond issue for an unidentified regulatory compliance project. The plan, over time, is roughly $29 - $30 million of baseline program with approximately $32 million in the bond issue which would be spent for an unidentified regulatory project. Under this plan the sewer service charge increase per year could be maintained between $15 to $17. Book 59 – Page 130 Board Minutes of November 12, 2009 Ms. Farrell concluded her presentation, stating that the Board is being asked to concur that proposed preliminary expenditure figures for Fiscal Year 2010-11 and the subsequent nine years are acceptable for inclusion in financial planning documents to be reviewed by the Board in January 2010. The Board is also being asked to concur that relative emphasis and allocation of expenditures among the four programs is acceptable for financial planning purposes and development of the detailed Fiscal Year 2010-11 Capital Improvement Budget and Ten Year Capital Plan. Board Members thanked Ms. Farrell for her comprehensive presentation and concurred with the recommendations as proposed. Member Lucey commented that he concurred with the recommendations, but would not be voting affirmatively for portions of it. Member Lucey stated that "modest or moderate" is the term being used by staff for anticipated sewer service charge increases, and he noted that a "modest or moderate" increase is in the eye of the beholder. He stated that staff is not considering what is going on in the real world with layoffs and 12 percent unemployment of the District's ratepayers. President Nejedly agreed with Member Lucey's comments. He stated that in concept the plan is good, but that some of the projects could be postponed because of current economic circumstances. 4. REPORTS/ANNOUNCEMENTS None. 5. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 2:37 p.m. Jas A. Nejedly ~ r resident of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: _. `~ , ~~ ~- Elairie,R. Boe'hme -; •~;. Secretary ofthe Central Contra Costa .,~,... Sanitary• District, County of Contra Costa, ' •~~,Sfate<o'f California Book 59 -Page 131