Loading...
HomeMy WebLinkAboutBOARD MINUTES 04-08-10MINUTES OF THE SPECIAL BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 8, 2010 The District Board of the Central Contra Costa Sanitary District convened in a special meeting at its regular place of meeting at the District Offices at 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on April 8, 2010. President McGill called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett (arrived at 2:31 p.m.), Lucey, Nejedly, McGill ABSENT: Members: Menesini 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. REPORTS/ANNOUNCEMENTS General Manager James Kelly announced that, the District has recently been certified as a green business through the Contra Costa Green Business Program (CCGBP). The certification, which took about a year to complete, involved submitting an application, then completing the following on-site audits: • Solid Waste (completed by Allied Waste staff) • Energy (completed by Pacific Gas and Electric staff) • Pollution Prevention (completed by District Source Control and CCGBP staff) • Water (completed by Contra Costa Water District staff) • Wastewater Compliance (completed by District Source Control staff) The most challenging requirements of this process were replacing District toilets with high-efficiency ones and the re-routing of several on-site storm drains. This certification covers all the buildings and operations at 5019 Imhoff Place. After the new Collection System Operations (CSO) facility is constructed, staff will pursue certification of that facility. Book 60 -Page 29 Board Minutes of April 8, 2010 As a new green business, the District is eligible to attend two upcoming recognition events: • Tuesday, April 20, 2010 -Contra Costa County Board of Supervisors' Recognition Ceremony during their regular Board Meeting. President McGill and General Manager James Kelly will attend and accept the recognition. • Thursday, July 15, 2010 -Association of Bay Area Governments' Recognition Ceremony before the regular evening Executive Board Meeting and acknowledgement during Executive Board Meeting. 4. CAPITAL PROJECTS BOARD WORKSHOP a. OVERVIEW OF THE FISCAL YEAR 2010-2011 DRAFT CAPITAL IMPROVEMENT BUDGET AND DRAFT 2010 TEN-YEAR CAPITAL IMPROVEMENT PLAN General Manager James Kelly introduced Director of Engineering Ann Farrell to present an overview of the Fiscal Year 2010-2011 Draft Capital Improvement Budget (CIB) and the Draft 2010 Ten-Year Capital Improvement Plan (CIP). Ms. Farrell gave an overview of her presentation, stating that she would review the Board's role in Capital planning and future challenges; the planned 2010-2011 Capital expenditures; individual programs and selected 2010-2011 Capital projects; the proposed Ten-Year Capital Improvement Plan; and the next steps in the Capital budgeting process. Ms. Farrell stated that the 2010-2011 expenditure recommendations total $28,464,000, which would require Board authorization of $37,466,000 in order to cover previously- authorized projects carried into the next fiscal year as well as new projects. She summarized the Board's ongoing role in the Capital program and stated that while its primary function is to authorize the budgets for the various Capital programs, it has many other opportunities during the year to approve specific expenditures. Ms. Farrell stated that the recommended expenditures for the Collection System are $10,508,000; $9,969,000 for General Improvements; $7,437,000 for the Treatment Plant; and $550,000 for Recycled Water. She noted that the General Improvements expenditures are relatively larger this year because of the inclusion of $6,080,000 for the Collection System Operations Facility Improvements. COLLECTION SYSTEM PROGRAM Ms. Farrell reviewed the Collection System Program. Approximately $105 million of the Ten-Year Plan's $305.8 million budget is dedicated to Collection System renovation, TV Program and related activities. The Ten-Year Plan also includes $20 million in high- Book 60 -Page 30 Board Minutes of April 8, 2010 priority capacity projects. Over the next ten years, 56.5 remaining miles of sewer will be renovated, which will achieve 100 percent completion of known defective lines. The TV program is estimated to complete inspection of the entire Collection System by June 2010. Plans for the next inspection are being developed. A-line easement acquisitions are budgeted less than last year, at $500,000 for 2010-2011. Ms. Farrell stated that Contractual Assessment Districts (CADs) is an unbudgeted effort, estimated to cost $4 million over the next ten years, should the Board vote to restart the program at a future meeting. If this occurred and were funded from the Sewer Construction Fund, the Sewer Service Charge (SSC) would have to increase about $1 per year for the first five years. For the subsequent ten years, the charge could decrease as much as $3 a year, given the six percent interest that would be received from the CADs. More information will be brought to the Board in the next meetings, prior to seeking a vote. TREATMENT PLANT PROGRAM Ms. Farrell stated that the Treatment Plant Program for the next year focuses mainly on renovation, rather than capacity or new regulations. She described the Piping Renovations, Phase 5, which will replace the failing aeration air headers in addition to some other improvements. The major project not involving renovation is the $2.2 million Dry/Wet Weather Flow Bypass Improvements, which will ensure a reliable method of bypassing flow to the creek, once environmental mitigation and permitting issues are resolved. RECYCLED WATER PROGRAM Ms. Farrell stated that $340,000 of the $550,000 Recycled Water Program is allocated to Zone 1 Recycled Water Continued Expansion, and $210,000 to Total Remaining Recycled Water Projects, including Industrial Concepts Planning and the Concord Naval Weapons Station. Staff is planning to hire a consultant via RFP by July 2010 to look at the cost and what facilities would be required to provide 2.7 mgd of recycled water to the Concord Naval Weapons Station. GENERAL IMPROVEMENTS PROGRAM The majority of the General Improvements budget is dedicated to the completion of the Collection System Operations Department (CSOD) Facility Improvements Project. The building has been demolished, and construction is underway. Ms. Farrell stated that staff recommends initiating seismic improvements to District facilities, starting with the Headquarters Office Building, to address seismic design code changes resulting from the 1994 Northridge earthquake analysis. The maximum ground acceleration at the Treatment Plant would result from the Concord Fault, which lies 709 feet from the CCCSD property line. The project uses a design earthquake of 6.71 Mw, which has a ten percent probability of occurring in fifty years. Book 60 -Page 31 Board Minutes of April 8, 2010 Member Lucey recommended considering Chile's building codes as a model, since their structures were less impacted when compared to similar quakes elsewhere. Upgrades to the Headquarters Office, Solids Conditioning, Pump and Blower, and Plant Operations Buildings have been incorporated into the Ten-Year Plan. Position papers to hire three different consultants for the seismic improvements will be brought to the Board in the future. Total project costs will be confirmed once pre-design information is obtained. Member Hockett arrived during discussion of this item. b. REVIEW OF SELECTED CAPITAL PROJECTS. Selected capital projects were reviewed within the previous items. c. SUMMARY Ms. Farrell summarized that total expenditures for 2010-2011 are budgeted at $28,464,000. Total Sewer Construction Fund revenues are budgeted at $22,369,000, assuming a SSC increase of $16.00, and $19,669,000 with no SSC increase. Because of the 2009 bond issuance, enough money is available to go forward with the 2010- 2011 Plan, regardless of the SSC decision, and adjust next year's budget as needed. Ms. Farrell reported that while the housing slowdown has resulted in a drop in District revenues from RUEs for the current fiscal year, the John Muir campus will connect earlier than expected, so the 2009-2010 budgeted total of 1,000 Residential Unit Equivalents (RUEs) is likely to be met before the end of the fiscal year. Depending on the SSC decision, reserves will need to be drawn down between $6,095,000 and $8,795,000 to fund the proposed Capital expenditures for Fiscal Year 2010-2011. The Ten-Year Plan has been reduced to $305.8 million from larger numbers in previous years. Significant projects have not been deferred, but estimates have been honed. Sixty percent is allocated to renovation projects, and abond-funded $32 million has been budgeted in 2016-2017 for an unidentified regulatory project. An additional $190 million in potential regulatory projects is unfunded, such as the removal of nitrogen, ammonia or phosphorous. Currently, there is not enough information to budget for them. However, there is a possibility that the $305.8 million, which focuses on renovation will increase, if significant changes in regulations occur. A public hearing to approve and adopt the Budget and Plan will be held on June 4, 2010, at the same time as other budget hearings. Closeouts of completed projects are scheduled for approval on June 17, 2010, and, if desired, a Capital Projects Committee meeting may be scheduled to review them in detail. Book 60 -Page 32 Board Minutes of April 8, 2010 Member Lucey stated his concerns with maintaining the Capital program despite reduced revenues. He cautioned against spending more money than is taken in and relying on bonds for funding. Ms. Farrell stated that the bonds were meant to fund specific projects. Member Lucey also questioned the need for an SSC increase when funding from bonds is expected, to which Ms. Farrell replied that the SSC helps maintain revenues to match expenditures. Mr. Kelly stated that the 2010-2011 base program of renovation is appropriate to keep the plant in good operating condition. If the SSC is not increased, staff will recommend how the Capital program may be decreased, though it is a key part of the District's compliance effort. Member Lucey stated that he was against not increasing the SSC this year, then doubling it next year. Member Nejedly stated that seismic retrofitting old, pre-existing buildings and substructures is a difficult expenditure to consider. Mr. Kelly responded that after the preliminary investigation of the costs for different structures, staff will seek direction from the Board based on a recommendation on the initial work. 5. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned C the meeting at 2:49 p.m. Michael R. M President df"the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: v .-w._ _ ~ 1. ~.: ~" ~~ =Eiairie ~.?Boehme `~'- _-Secretaiy of the Central Contra Costa ~~~ ~O ~It.C` ` ,~.~~nifary'District, County of Contra Costa, 'State of California Book 60 -Page 33