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HomeMy WebLinkAboutBOARD MINUTES 05-06-10MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 6, 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, May 6, 2010. President McGill called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL 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. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve expenditures dated May 6, 2010. Reviewed by Budget and Finance Committee. b. Receive March Financial Statements. Reviewed by Budget and Finance Committee. c. Approve minutes of April 1, 2010 and April 8, 2010 Board meetings. d. Establish June 3, 2010 at 2:00 p.m. as the date and time for a public hearing to consider the Draft Fiscal Year 2010-2011 Capital Improvement Budget and 2010 Ten-Year Capital Improvement Plan. e. Adopt Resolution 2010-019 accepting an offer of dedication from Edna J. Bingham for an easement in the city of Walnut Creek area, Job 6465, Parcel 2, and authorize staff to record documents with the Contra Costa County Recorder. Book 60 -Page 44 Board Minutes of May 6, 2010 Adopt Resolution 2010-020 accepting an offer of dedication from Plaza Escuela Holding Company, LLC for an easement in the city of Walnut Creek area, Job 5457, Parcel 2, and authorize staff to record documents with the Contra Costa County Recorder. g. Adopt Resolution 2010-021 accepting an offer of dedication from JoAnne E. Macomber for an easement in the unincorporated area of Alamo, Job 5444, Parcel 2, and authorize staff to record documents with the Contra Costa County Recorder. h. Adopt Resolution 2010-022 accepting an offer of dedication from Paul J. Famular and Michele Famular for an easement in the unincorporated area of Alamo, Job 5444, Parcel 3, and authorize staff to record documents with the Contra Costa County Recorder. Authorize medical leave of absence without pay for Administrative Assistant Marnie Brennan from May 18, 2010 through July 31, 2010. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Items 7.a. and 6.a.1) were taken out of order. 5. BIDS AND AWARDS a. CONSIDER REQUEST FOR BID RELIEF FROM KAWEAH CONSTRUCTION COMPANY AND DIRECT STAFF TO RETURN BID BOND; AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $2,077,440 TO NCCI, INC., THE SECOND LOWEST RESPONSIVE BIDDER FOR THE TREATMENT PLANT PIPING RENOVATIONS, PHASE 5, DISTRICT PROJECT 7276; FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA); AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS General Manager James Kelly stated that the Treatment Plant Piping Renovations, Phase 5, Project construction work will focus on replacing the 24-inch aeration air supply headers and downcomers on the aeration tanks, three Water High Pressure (WHP) pipelines in the West Gallery, condenser piping in the Pump and Blower Building, and sump pump drain piping in the tunnels. In addition, valves and gates that are leaking or have become inoperable are also being replaced as part of this project. He stated that eight bids were received. The bids ranged from $1,699,000 to $2,521,000, with the Engineer's Estimate being $2,225,000. On the morning of April 20, 2010, Kaweah Construction Company, the lowest responsive bidder, asked for relief of bid because they had made a clerical error, and have provided satisfactory documentation of the error. Book 60 -Page 45 Board Minutes of May 6, 2010 Staff recommends that the Board consider and accept the request for relief of bid from Kaweah Construction Company and award a construction contract in the amount of $2,077,440 to NCCI, Inc., the second lowest responsive bidder. District Counsel Kent Alm confirmed that the recommendation is legally appropriate. It was moved by Member Nejedly and seconded by Member Lucey to find that the project is exempt from CEQA; to grant the request for bid relief from Kaweah Construction Company and to direct staff to return bid bond; to award a construction contract to NCCI, Inc.; and to authorize the General Manager to execute the contract documents as recommended. Motion passed by unanimous vote of the Board. 6. REPORTS a. GENERAL MANAGER 1) Procedure for committing District capacity to development and sewering areas outside the Urban Limit Line General Manager James Kelly stated that Development Services and Planning staff regularly receive inquiries from property owners and developers regarding the availability of District sewer service for particular properties. The District can permit connections when the property is already annexed to the District and service has been planned for the level of development proposed. He stated that, if the property is not annexed, is outside of the District's Sphere- of-Influence (SOI), is outside the County's Urban Limit Line (ULL) or where there are no planned facilities for the level of development proposed, whether or not connection is possible must be conditioned on the completion of the appropriate land-use process and, where required, discretionary actions of the Board. He stated that staff wishes to ensure that staff responses to these inquiries are consistent and clearly reflect Board policy. Principal Engineer Jarred Miyamoto-Mills described the District's responses to requests for public sewer service for proposed development for five conditions: (a) within the District's annexed territory, (b) within both the District's Sphere of Influence (SOI) and County Urban Limit Line (ULL), (c) within the District's SOI but outside the ULL, (d) outside the District's SOI but within the ULL, and (e) outside the District's SOI and the ULL. He stated that the role of the Local Agency Formation Commission (LAFCO) is to set the District's SOI and boundaries, based on its determination of the most logical service provider considering multiple criteria per State law. LAFCO may find that the District is the logical service provider for an area, even if it is located outside the current SOI. Book 60 -Page 46 Board Minutes of May 6, 2010 Current requests for service outside the ULL are the County application for a General Plan Amendment for New Farm development and Alhambra Valley EIR. He stated that the New Farm engineer has proposed that the District serve the northern site via a pumping station and forcemain connecting to an existing public sewer in Camino Tassajara, and the southern site be served with septic tanks, an onsite community system, by Dublin San Ramon Services District, or by pumping to the District. New Farm is outside the District's SOI and the ULL (condition (e)). Tom Koch, New Farm project manager, addressed the Board in support of the District providing sewer service to the development. Member Nejedly and Lucey stated that it is the District's purpose to provide sewer service if it has the capacity, not make land use decisions. Member Lucey pointed out that the District is a public health agency, not a planning agency. Member Menesini concurred with Members Lucey and Nejedly. President McGill stated that if a property owner wishes to apply to be included in the sphere of influence and annexed, then the District should consider service after the necessary approvals have been obtained and it should not be constrained by the ULL. 2) Report on pending State legislation regarding recycled water including SB 1173 (Wolk) General Manager James Kelly stated that the State Legislature continues to attempt to encourage recycling of treated wastewater. He stated that Director of Engineering Ann Farrell will discuss the SB 1173 that Member Nejedly inquired about at a previous meeting, as well as several other bills regarding recycled water. Director of Engineering Ann Farrell described AB 1755 (Saldana), SB 918 (Pavley), and SB 1173 (Wolk) which relate to use of recycled water. She described barriers to the use of recycled water, noting that, to be successful, recycled water must compete on a cost basis. 3) Report on pending legislation regarding California Public Retirement Systems - AB 1987 and SB 1425 Director of Administration Randy Musgraves referred to his memorandum in the Board agenda packet concerning AB 1987 and SB 1425, which proposed to eliminate spiking and provide consistency in calculating the retirement benefit for public sector retirement systems. He stated that both bills have the same provisions and limitations and require that the other bill must be enacted and take effect by January 1, 2011 in order for the bill to become operative. The bills, as Book 60 -Page 47 Board Minutes of May 6, 2010 written, would eliminate spiking and create consistent calculation of an employee's retirement benefit. He noted that staff is continuing to monitor the progress of the bills and will keep the Board informed. Passage of these bills could result in 80-90 retirements between now and July 1, 2011. This, plus the 77 new employees hired in the past five years, could lead to approximately 60 percent of District employees being with the District six years or less. In response to a question from President McGill, Mr. Musgraves stated that CASA is not monitoring the bills. 4) Response from Contra Costa County Employees Retirement Association (CCCERA) regarding data request for de-pooling by employer Director of Administration Randy Musgraves provided an update on the District's request for depooling data from CCCERA. He stated that, at its recent meeting, the CCCERA Board acknowledged the need of member agencies for depooling data. He stated that the CCCERA Board will meet on May 17, 2010 to receive information from its actuary, Mr. Segal, and from CCCERA staff regarding the ability to depool at the employer level, or if the data can only support depooling to the Tier, or retirement benefit, level. He stated that staff will keep the Board informed as information becomes available. Member Nejedly noted that the lack of information and response by CCCERA is unacceptable, and pointed out that the District has repeatedly requested depooling data from CCCERA since January, 2010 with no result. 5) General Manager James Kelly announced that the District will host a public workshop at 7 p.m. on Wednesday, May 12, 2010 at Orinda Intermediate School located at 80 Ivy Drive regarding Hall Drive Sewer Renovations (Phase 2B), DP 5932. The project will renovate 2,600 linear feet of 6-inch sewer lines within public right-of-way and easements by using horizontal directional drilling, pipeburst, and open cut methods. 6) General Manager James Kelly announced that a community meeting on District Annexation 178 will be held at 7 p.m. on Wednesday, May 26, 2010, at Round Table Pizza located at 504 Center Avenue in Martinez. Staff will discuss the impacts and process for the annexation with the owners of affected properties and also with property owners and residents of the area surrounding the parcels proposed to be annexed. This meeting is part of the extensive outreach program for annexations that was developed in consultation with Contra Costa LAFCO. A letter inviting participation in the meeting will be mailed to 453 property owners and residents during the week of May 10, 2010. Book 60 -Page 48 Board Minutes of May 6, 2010 7) General Manager James Kelly announced that Kathleen West will be attending the International Right of Way Association (IRWA) 56t" Annual International Education Conference. As Vice President of the local Chapter 2 of IRWA, one of Senior Right-of-Way Agent Kathleen West's responsibilities is to attend the Annual Education Conference along with the Spring and Fall Forum. All costs associated with attending the meeting, including airfare, registration, food, and lodging are paid by the association. The only District expense is her time to attend. The conference will have a direct use and benefit to the District, which includes invaluable networking with other IRWA chapters and professionals, promoting and supporting the local IRWA chapter, and attending numerous educational sessions (right of way ethics, eminent domain updates, professional development, utilities, and international committee meetings). It is anticipated that she will be able to apply the new knowledge and insight to her current and future positions and responsibilities. 8) General Manager James Kelly announced that Associate Engineer Gail Chesler will be attending the U.S. Environmental Protection Agency (EPA) Technology Transfer Seminar -Nutrient Control at Municipal Wastewater Treatment Plants in Seattle, Washington on May 11 and 12, 2010. Dr. Chesler will be attending to gather information regarding updated, state-of the-art technology design on nitrogen and phosphorus control at municipal wastewater treatment plants and environment impacts of nutrients. Her expenses will be covered under the Environmental Services Division technical training and conferences O&M budget. 9) General Manager James Kelly announced that he will be on vacation May 20-21 and will be absent from the May 20, 2010 Board meeting. b. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT The Secretary of the District announced the Human Resources Committee meeting to be held on May 12, 2010. 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; Book 60 -Page 49 Board Minutes of May 6, 2010 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 April 28-30, 2010 California Association of Sanitation Agencies (CASA) Conference and CASA Executive Board meetings. Member Neiedl Members Nejedly and Hockett reported on the May 3, 2010 Budget and Finance Committee meeting and summarized the Action Summary. The Board accepted the report without comments. President McGill President McGill provided a written report on his attendance at the April 19, 2020, Contra Costa Special Districts Association meeting. He announced that Dwight Meadows was re-elected as Special District Representative to LAFCO, and George Schmidt was re-elected as Alternate. He provided a written report on his attendance at the April 28-30, 2010 California Association of Sanitation Agencies (CASA) Conference. 3) Announcements Member Menesini announced the upcoming Environmental Alliance Meeting to be held on May 17, 2010. President McGill provided a written report covering Announcements and upcoming meetings. Member Hockett commended Provisional Plant Operations Division Manager Ba Than on his presentation at the recent CASA Conference. 7. ENGINEERING a. CONSIDERATION OF AUTHORIZING FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) CONSISTING OF UP TO SIXTEEN PROPERTIES ON SUNNYBROOK ROAD IN ALAMO BY ADOPTING A RESOLUTION OF INTENTION TO CREATE SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 FOR THE PURPOSE OF INSTALLING SEWER IMPROVEMENTS; ADOPTING A RESOLUTION APPROVING THE BOUNDARY OF THE ASSESSMENT DISTRICT; AND Book 60 -Page 50 Board Minutes of May 6, 2010 ADOPTING A RESOLUTION REQUESTING CONSENT FROM CONTRA COSTA COUNTY FOR THE DISTRICT TO CONDUCT PROCEEDINGS FOR SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 General Manager James Kelly stated that the District formed its last Contractual Assessment District (CAD) in 2003. Interest in the CAD Program has increased during the past year. The Budget and Finance Committee reviewed the proposal for a Sunnybrook Road CAD and recommended approval. The cost is low, and therefore staff recommends use of District funds. He stated that staff recommends approval of the Sunnybrook CAD, and consideration of the overall CAD Program at a future date. Environmental Services Division Manager Curt Swanson presented the staff report for the proposed Sunnybrook Road CAD Project. He stated that it comprises 1,100 feet of 8-inch sewer, with a sewer main cost of $150,000. Laterals and other costs would range between $143,000 - $175,000. The estimated cost per property, without CAD financing, would be $18,326-$20,326. The proposed CAD meets the formation criteria of at least five properties, at least 60 percent of which are developed, and with no more than two dwellings on each property. He explained the cost per participant, which depends upon how many participants hook up. Costs ineligible for financing include the connection fee of $5,451, septic tank abandonment, and lateral sewer costs on private property. Ineligible costs range from $8,951 to $10,951 and are paid up front. He stated that staff recommends using Sewer Construction Fund Reserves for the Sunnybrook CAD project. An interest rate of 6 percent per year would generate interest income of $51,000 over 10 years. Member Lucey stated that he has no problem supporting the Sunnybrook CAD and the use of SCC reserves. However, he pointed out that his support for this particular CAD should not be considered as support for future CADS or District borrowing funds to do so. Member Nejedly concurred with comments made by Member Lucey and stated that he too opposes the District borrowing money to finance CADS. Tom Duley, Tumblingbrook Road resident in Orinda, stated that he represents a number of homeowners who are in support of the Sunnybrook CAD. He submitted a letter from homeowners in support of the CAD. Steven Savage, Sunnybrook Road resident, urged the Board to approve the CAD. He requested that the Board also consider allowing financing of the connection fees. Member Nejedly noted that the connection fee is appropriately part of the down payment paid by the participants and indicates a "buy-in" on the part of the participants. Book 60 -Page 51 Board Minutes of May 6, 2010 President McGill stated that he did not see connection fees mentioned in the three resolutions presented for adoption. District Counsel Kent Alm stated that the CAD policy was adopted by resolution in 2001 and that resolution discusses connection fees. President McGill asked if the Board could change the policy regarding the financing of connection fees, if it wished. Mr. Alm responded that there is a debate whether current assessment law allows the financing of private laterals. He indicated that this question may be resolved by pending legislation. He also noted that there are differing practices among public agencies as to whether to finance construction fees. However, if the Board wishes to finance connection fees, there are ways to do so. In response to question from Member Hockett, District Counsel Kent Alm stated that some connection fees were financed in the Alhambra Valley Assessment District project, which is different from a CAD. It was moved by Member Nejedly and seconded by Member Hockett to authorize formation of a CAD consisting of up to sixteen properties on Sunnybrook Road in Alamo by adopting Resolution of Intention 2010-023 to create Sunnybrook Road Contractual Assessment District No. 2010-1 for the purpose of installing sewer improvements; to adopt Resolution 2010-024 approving the boundary of the assessment district; and to adopt Resolution 2010-025 requesting consent from Contra Costa County for the District to conduct proceedings for Sunnybrook Road Contractual Assessment District No. 2010-1. Motion passed by unanimous vote of the Board. b. ADOPT A RESOLUTION OPPOSING THE CALIFORNIA WATER BOND PROPOSITION ENTITLED "SAFE, CLEAN, AND RELIABLE DRINKING WATER SUPPLY ACT OF 2010," WHICH HAS BEEN PLACED ON THE NOVEMBER 2, 2010 BALLOT General Manager James Kelly stated that, at the April 15, 2010 Board meeting, a summary of the Statewide Water Bond entitled "Safe, Clean, and Reliable Drinking Water Supply Act of 2010" was presented and Board input was sought. The Board discussed the issues and determined that they wished to go on record opposing the Act and delineating their reasons why in a resolution. Other agencies, such as EBMUD and Contra Costa County, have not yet taken a formal position. Therefore, if the Board would like significant changes made to the resolution, there is still adequate time to refine the document and bring it back to the next meeting. President McGill requested that two additional points be made in the resolution: that the District recognizes the value of the Delta; and that the resolution not state that the State cannot afford to finance the Bonds, but rather that there are just certain elements of the cost that are not warranted, since bond issuance may well be necessary in the future. Member Hockett noted that the resolution should stated that people who benefit should pay. Book 60 -Page 52 Board Minutes of May 6, 2010 President McGill requested that staff refine the wording in the resolution and bring it back to the Board for adoption at a future meeting, noting that by then EBMUD and Contra Costa Water District may have taken positions on the water bonds. 8. BUDGET AND FINANCE a. ESTABLISH JUNE 3. 2010 AT 2:00 P.M. AS THE DATE AND TIME FOR A PUBLIC HEARING ON THE FISCAL YEAR 2010-2011 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE FUND BUDGET AND THE SELF- INSURANCE FUND BUDGET, AND FOR THE ESTABLISHMENT OF THE FISCAL YEAR 2010-2011 SEWER SERVICE CHARGE RATES, AND ON THE COLLECTION OF CURRENT SEWER SERVICE CHARGES BY PLACING THEM ON THE CONTRA COSTA COUNTY TAX ROLL General Manager James Kelly gave an overview of previously-presented rate increase options, including regular increases of $16 over the next few years, and a scenario of no rate increase this year and $20 increases each subsequent year. He announced that 140,000 Proposition 218 Notices were mailed out, and some responses have been received. To date, the District has received 7 letters opposing a rate increase, and 62 e-mails, mostly negative. Several phone calls have been received, largely of a transactional nature. The Board will receive copies of the letters and a-mails as well as final numbers at the June 3, 2010 public hearing. President McGill noted that he understands that a-mails cannot be considered official protests, but pointed out that the language in the Proposition 218 Notice does not say that. He suggested that that be clarified in future Prop 218 Notices. District Counsel Kent Alm stated that the language in the Notice is broader than how the law is written. It was moved by Member Hockett and seconded by Member Lucey to establish June 3, 2010 at 2:00 p.m. as the date and time for a public hearing on the Fiscal Year 2010- 2011 Operations and Maintenance Budget, Debt Service Fund Budget and the Self- Insurance Fund Budget, and for the establishment of the Fiscal Year 2010-2011 Sewer Service Charge rates, and on the collection of current Sewer Service Charges by placing them on the Contra Costa County Tax Roll. Motion passed by unanimous vote of the Board. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS None. Book 60 -Page 53 Board Minutes of May 6, 2010 11. CLOSED SESSION ' a. The Board recessed at 3:38 p.m: to reconvene in closed session to confer with Legal Counsel -existing litigation pursuant to Government Code Section 54956.9(a): Matthew Parkinen v. Central Contra Costa Sanitary District, Contra Costa County Superior Court Case No. C09-01511. The Board reconvened in open session at 4:05 p.m. 12. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that the Board gave him instructions regarding Item 11.a. 13. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 4:07 p.m. Michael R. McGil President of the oard of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California ~CQUNTERSIGNED: _ . t ~~! ~~ ~. :~.~ :< < ~- - :'Elaine R. Boehme ~'~'=. . ~ Secretary of the Central Contra Costa ",,- Sanitary District, County of Contra Costa, ' •~State of California Book 60 -Page 54