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HomeMy WebLinkAboutBOARD MINUTES 02-18-101 MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 18, 2010 The Board of Directors of the Central Contra Costa Sanitary District convened in a regular meeting at their regular place of business, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, February 18, 2010. President McGill called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL L PRESENT: Members: Hockett, Lucey, Menesini, Nejedly, McGill ABSENT: Members: None . a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance. b. INTRODUCTIONS The Board welcomed newly-hired Human Resources Analyst, Chris Ko. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR 1 It was moved by Member Menesini and seconded by Member Hockett to adopt the Consent Calendar with the exception of Item 3.h. Motion passed by unanimous vote of the Board. a. Approve expenditures dated February 18, 2010. Reviewed by Budget and Finance Committee. b. Receive December 2009 Financial Statements. Reviewed by Budget and Finance Committee. c. Approve minutes of January 21, 2010 Board meeting. Book 59 -Page 187 Board Minutes of February 18, 2010 d. Adopt Resolution 2010-008 accepting grants of easements from property owners in the Moraga Del Rey neighborhood, Orinda, District Project 5950 -Parcels 10, , 33 and 47; and authorize staff to record documents with the Contra Costa County Recorder. e. Authorize execution of the updated Pretreatment Memorandum of Understanding with the City of Concord for the District to continue conducting pretreatment program activities in the City of Concord's sewer service area. f. Deny claim from Encompass Insurance for repair costs to their insured's vehicle. g. Accept the contract work for the Pleasant Hill Sewer Renovations, Phase 1, District Project 5961, completed by McNamara and Smallman Construction, Inc., and authorize filing of the notice of completion. h. Authorize the substitution of Bailey Fence Company, Inc. and BR Acoustical, Inc., the listed subcontractors, with AJR Door Service, Inc. and Daley's Drywall for the fencing and acoustical ceiling work on the CSOD Administration, Crew, and Warehouse Facility, District Project 8208. Staff responded to Member Menesini's questions regarding the reason for the substitution request. It was moved by Member Menesini and seconded by Member Hockett to approve , Item 3.h. Motion passed by unanimous vote of the Board. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 5.a.2) was taken out of order immediately prior to Item 5.a.1). 5. REPORTS a. GENERAL MANAGER 1) Pollution Prevention Report for 2009 and Pollution Prevention Plan for 2010. General Manager James Kelly stated that the District's National Pollutant Discharge Elimination System (NPDES) permit requires staff to submit an annual report of pollution prevention activities for the previous year, and that this was reviewed by the Outreach Committee. Assistant Engineer Melody LaBella provided highlights from the 2009 Pollution Prevention Annual Report and the 2010 Pollution Prevention Plan. The Household Hazardous Waste Collection Program collected 1.8 million Ibs of ' household hazardous waste, over 60,000 Ibs of biocides and over 2,200 gallons Book 59 -Page 188 ~., T.. ~: ,,. r.-~ . Board Minutes of February 18, 2010 of cooking fats or oil. A total:of 4,700 Ibs of unwanted pharmaceuticals was also ' collected. She described the Source Control Program and stated that staff has continued the Industrial Users Academy and implementation of the Mandatory Dental Amalgam Program. The High School Mercury Minimization Program was also continued and the 17th Annual Pollution Prevention Awards were conducted. Community outreach included several Pollution Prevention and "green" articles in the three issues of "Pipeline" mailed to all customers. Over 324 plant tours were conducted. New goals for 2010 include working with Contra Costa Clean Water Program to ensure District standards are met for stormwater diversions; a residential fats, oil and grease pilot study; and the addition of pyrethroid pesticides as a pollutant of emerging concern in the 2010 Pollution Prevention Plan. 2) Contractual Assessment Districts (CAD) Financing Options Update. General Manager James Kelly stated that, last year, a group of property owners along Sunnybrook Road in Alamo requested that the District form a contractual assessment district to finance a public sewer to serve their neighborhood. Staff advised the Board that, because of a state law passed in 2008, the District was prohibited from forming CADS and that the CAD program had been discontinued in 2004. At the December 3, 2009 Board meeting, staff reported that the District would be able to initiate contractual assessment districts as of January 1, 2010, as a result of corrective legislation. Staff requested direction about restarting a contractual assessment district program. The Board asked staff to provide additional information about resuming a CAD program, including financing options. Environmental Services Division Manager Curt Swanson presented a report about financing options for a possible CAD program. He stated that the CAD program ran from 1997 to 2004, and in 2007 the District formed the Alhambra Valley Assessment District for the Alhambra Valley sewer connection project. There has been significant interest in forming a new CAD for the Sunnybrook Road area, which has 15 potential connections, and some interest from residents of Cordell/Harper Lane in Danville, La Sonoma Way in Alamo, Jackson Way in Alamo, and six other areas in Orinda, Lafayette and Walnut Creek. Mr. Swanson suggested that before a CAD program is reinstated, the Board should consider funding source and level, financing terms and length, and program rules. Previously, District reserves were used to finance CADs. Financing options also include bonds, loans, or a combination of bonds and ' loans. Book 59 -Page 189 Board Minutes of February 18, 2010 Mr. Swanson explained the CAD program rules that were in existence from 1997- 2004. He stated that staff recommends using the same rules for any future ' CADs, and also recommends using loans to finance the program rather than District reserves. Member Nejedly asked whether staff has a recommendation for a cap for the program. Staff responded that that matter has not been addressed. Member Nejedly stated his support for reinstating the CAD program, and expressed a preference for financing the program through District reserves rather than loans. Member Lucey concurred with Member Nejedly's position. Member Hockett stated that she would need more information comparing the use of loans versus District reserves before making a decision. Member Menesini also expressed support for reinstatement of the CAD program. President McGill asked questions concerning liens, loan rates, and how a loan would be collected from the property owner. He stressed the importance of flexibility and options for repayment. Steven Savage, resident of Sunnybrook Road, addressed the Board in support of reinstating the CAD program in his neighborhood. He stated that he knows of ' sixteen residents who support the CAD program. He requested that the District look at financing the fees that would be assessed. District Counsel Kent Alm confirmed that, in the earlier CAD program, fees were not to be financed. He stated that fees can in fact be financed, but not through an assessment district program. General Manager James Kelly stated that staff will bring the matter back to the Board with additional information for consideration. 3) Contra Costa County Employees' Retirement Association (CCCERA) Update. Director of Administration Randy Musgraves referred to his memorandum dated February 18, 2010 summarizing the recent CCCERA Board meeting. He stated that, at that meeting, the CCCERA Board adopted acost-of-living adjustment (COLA) of 2.5% as of April 1, 2010. Also at that meeting, the CCCERA Board directed their legal counsel to bring a proposal to the CCCERA Board that would modify their terminal compensation policy for new employees. The proposal would redefine compensation for retirement purposes to include pay for what is: earned, payable in cash, to the employee, during service, in the "final compensation" period. The definition of new employee was to be clearly defined , by their legal counsel, with the understanding that the employers have an Book 59 -Page 190 Board Minutes of February 18, 2010 opportunity to provide comment at the public Board meeting when the matter is ' discussed. He stated that nothing is being changed for retirees and active employees, but future employees will have limited ability to spike their retirement. He confirmed that the CCCERA Board has not yet taken a vote on the matter. 4) General Manager James Kelly announced that Environmental Services Division Manager Curt Swanson will be attending the Washington D.C. California Association of Sanitation Agencies (CASA) Conference from Sunday, March 7 through Wednesday, March 10, 2010, in place of himself. 5) General Manager James Kelly announced that the following is a list of past/expected retirements, thus far, for 2010: Dennis Almond, Construction Inspector -March date anticipated Rich Boylan, Vehicle & Equipment Maintenance Supervisor -March 30tH Bill Brennan, Director of Collection Systems -February 16tH Bill Clement, Engineering Support Supervisor -March Stn Doug Craig, Director of Plant Operations -March 30tH Sue Hasselwander, Chemist II -January 19tH Doris Keifer, Administrative Assistant -March 17tH Chris Keith, Construction Equipment Operator -January 21St ' Paul Louis, Maintenance Supervisor -March 24tH Darlene Ross, Human Resources Analyst -February 16tH Adela (Deily) Schwitters, Engineering Technician II -March 3`d Patricia Kast, Administrative Support Supervisor -March 17th For this same time frame in 2009, there was a total of four retirements. 6) General Manager James Kelly announced that Environmental Services Division staff will host a community meeting on Wednesday, March 3, 2010, in the Mt. Diablo Room at the Danville Library located at 400 Front Street in Danville. The meeting will begin at 7 p.m., and is being held to give residents an opportunity to learn more about the annexation process. Staff initiated the "open house" meeting process after the Local Agency Formation Commission (LAFCO) recommended that we expand our routine outreach to affected property owners who have not petitioned for annexation to the District. The recommendations were made by LAFCO's Commissioners at the public hearing for DA 170. The meeting information will include the availability of sewer service, and the procedures, and cost for connecting to the District's sewer system. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm provided an update on the Novato Sanitary District. Book 59 -Page 191 Board Minutes of February 18, 2010 c. SECRETARY OF THE DISTRICT ' Announced upcoming meetings of the Human Resources Committee and Recycled Water Committee. d. BOARD MEMBERS 1) Board Member reports on future meetings or conferences for which they will receive the stipend 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 announced that she will attend the upcoming meeting in Danville regarding District annexations. Member Neledly Members Nejedly and Hockett reported on the February 17, 2010 Budget and Finance Committee meeting. The Board received the report without ' comments. President McGill President McGill provided a written report on his meeting attendance. President McGill and Member Menesini reported on the February 9, 2010 Capital Projects Committee meeting and summarized the Action Summary. He noted that the Committee recommended increasing the General Manager's authority from $5,000 to $15,000 for equipment purchases. The Board received the report without comments. 2) Announcements President McGill provided a written report covering Announcements. President McGill announced his intention, with Board concurrence, to send a letter to Contra Costa Special Districts Association (CCSDA) Chair Bette Boatmun notifying her of the District's intent to hand over the administrative support of CCSDA to another agency once she has selected a replacement. The District has been providing administrative support to CCSDA for almost three years. i Book 59 -Page 192 Board Minutes of February 18, 2010 Member Lucey stated that he did not receive a copy of the letter from a ' District retiree that was published in the San Ramon Valley Times concerning himself and Member Hockett. He requested that when any such articles are published he be given a copy. Member Menesini announced the upcoming Environmental Alliance meeting to be held on February 22, 2010. 6. ADMINISTRATIVE a. RECEIVE THE 2009-2010 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31 2009 AND PROJECTIONS FOR THE FULL FISCAL YEAR General Manager James Kelly stated that staff provides a detailed financial report to the Board twice a year, once at the six month point, and again in May during the budget cycle. In addition, the Board receives monthly financial statements in their Board binder to review, and the Budget and Finance Committee reviews these also. Controller Debbie Ratcliff will present the financial status for the O&M Budget, and the Director of Engineering Ann Farrell will provide amid-year status report for the Capital Budget. Controller Debbie Ratcliff presented the financial status for the O&M Budget. She ' stated that the actual revenues for the six months ending December 31, 2009 are $27,463,660, compared with the projected revenues of $27,654,074. Total expenses were $26,831,215, compared with the projected expenses of $28,747,674. Total revenues for the full fiscal year are projected to be $60,400,696, compared with the budgeted $61,668,296. Total projected expenses for the full fiscal year are $58,035,857, compared with the budgeted $59,745,669. Favorable variances include the cost of labor, which is under budget due to vacant-~-' '--:, ` , , ~ . positions; repairs and maintenance; outside services; and materials and supplies.{~ _ ~~~~' ':; - _; b. 2009-2010 CAPITAL IMPROVEMENT BUDGET MID-YEAR"STATUS RESORT"'- _ ~ ,~ Director of Engineering Ann Farrell presented a brief status report on the mid=year '- - .. Capital Improvement Budget. She stated that total expenditures of $40.1 million were! . l budgeted for 2009-10, and are projected to be $32.5 million. Total revenue was budgeted at $25.2 million, and are projected to be $20 million. The reduction in revenue is due primarily to no sewer service charge increase and reductions in facility capacity fees, interest income, and property tax revenue. She presented charts showing the FY 2009-10 capital revenue by category, and by program. Total projected expenditures for 2009-10 are $32.5 million, which is a $7.6 million reduction of what was budgeted. However, because revenues are also ' significantly reduced, there will still be a projected $12.5 million draw down of the Sewer Construction Fund balance. Book 59 -Page 193 Board Minutes of February 18, 2010 She explained major variances in the Treatment Plant Program and the Collection ' System Program, which included a good bidding climate, increased scope in certain projects, deferring some projects, and unbudgeted emergency repairs. 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 8. SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 9. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 3:25 p.m. Michael R. McGill President oft oard of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: .-._ -_ _o _ .,'~ f ;:. '`,t^ Elaine R. 8oehme Secretary`of the Central Contra Costa ~'~ ~Sau~itary District, County of Contra Costa, State of California 1 1 Book 59 -Page 194