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HomeMy WebLinkAboutBOARD MINUTES 05-20-10MINUTES OF THE REGULAR MEETING ' OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 20, 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 20, 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 1 There were no public comments. 3. CONSENT CALENDAR Member Lucey removed Item 3.h. for discussion. Member Lucey questioned why the District proposes to spend $200,000 on contract inspectors rather than hiring an additional employee. He asked whether stopping the engineer rotation during the summer would save money, and also asked whether District retirees will be used. Director of Engineering Ann Farrell responded that additional inspectors are usually required during summer months, and she understood that the use of retirees was permissible if only for a short period of time. President McGill asked that any such contracts be reviewed by the Human Resources Committee in the future. It was moved by Member Menesini and seconded by Member Hockett to adopt the Consent Calendar as recommended. Motion passed by the following vote of the Board: Book 60 -Page 55 Board Minutes of May 20, 2010 AYES: Members: Hockett, Menesini, Nejedly, McGill ' NOES: Members: Lucey ABSTAIN: Members: None a. Approve expenditures dated May 20, 2010. Reviewed by Budget and Finance Committee. Approve minutes of April 15, 2010 Board meeting. c. Adopt revised job classification descriptions for Director of Plant Operations and Director of Collection System Operations. Approval recommended by Human Resources Committee. Adopt Resolution 2010-026 accepting grants of easements from property owners in the Lafayette Oaks neighborhood, Lafayette (District Project 5958 -Parcels 4, 5, and 7), and authorize staff to record documents with the Contra Costa County Recorder. Adopt Resolution of Application 2010-027 requesting that Contra Costa Local Agency Formation Commission (LAFCO) initiate proceedings to annex ten separate annexation areas in Danville, District Annexation 179, including the finding that annexation of each property in Annexation Areas 179-1 through 179- 10 (inclusive) is exempt from CEQA. ' Adopt Resolution of Application 2010-028 requesting that Contra Costa Local Agency Formation Commission (LAFCO) initiate proceedings to annex eight separate annexation areas in Alamo, District Annexation 180, including the finding that annexation of each property in Annexation Areas 180-1 through 180- 8 (inclusive) is exempt from CEQA. Accept the contract work for the Walnut Creek Sewer Renovations, Phase 7, District Project 5974, completed by Ranger Pipelines, Inc., and authorize the filing of the Notice of Completion. Authorize the General Manager to execute agreements with Valley Engineering Group in the amount of $100,000 and JN Engineering in the amount of $100,000 to provide relief inspectors for the 2010-2011 construction of capital improvement projects. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. Book 60 -Page 56 Board Minutes of May 20, 2010 ' 5. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $741,870 TO MCNAMARA AND SMALLMAN CONSTRUCTION, INC., THE LOWEST RESPONSIVE BIDDER FOR HALL DRIVE SEWER RENOVATIONS, PHASE 2B DISTRICT PROJECT 5932• 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 Acting General Manager Randy Musgraves stated that, on May 5, 2010, the District received two bids for the construction of Hall Drive Sewer Renovations. This project consists of installing approximately 1,900 linear feet of 6-inch sewer lines within public right-of-way and private easements utilizing open cut, pipebursting and horizontal directional drilling construction methods. The Engineer's Estimate was $960,000. Staff reviewed the bids and recommends awarding the project to McNamara and Smallman Construction, Inc. for $741,870. It was moved by Member Hockett and seconded by Member Menesini to find that the project is exempt from CEQA; to award a construction contract to McNamara and Smallman Construction, 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) Retirement Update Acting General Manager Randy Musgraves summarized the memorandum in the Board agenda packet regarding depooling. He stated that there was lengthy discussion at the Contra Costa County Employees' Retirement Association (CCCERA) Board meeting. He stated that the CCCERA Board hopes to have reviewed the depooling data by June, after which the information will be provided to Segal, their actuary. CCCERA feels that employers should pay their fair share of the cost of spiking and will consider depooling at the employer level. He stated that the District will have the opportunity to review the information in August, and provide input to the CCCERA Board in September. Member Nejedly expressed his continuing frustration with the lack of availability of information for the District to review. 2) Acting General Manager Randy Musgraves announced that the District ' has been notified that the Comprehensive Annual Financial Report (CAFR) for fiscal year ending June 30, 2009, qualifies for the Certificate of Achievement for Excellence in Financial Reporting awarded by the Book 60 -Page 57 Board Minutes of May 20, 2010 Government Finance Officers Association. The CAFR is the highest form of recognition in governmental accounting and financial reporting. The ' Certificate of Achievement plaque will be received in about eight weeks, at which time a presentation will be made to the Board. This is the tenth consecutive year the District has received the award. 3) Acting General Manager Randy Musgraves announced that Harassment Avoidance Training is required by State law every two years for supervisors and managers. All District employees, including summer students and temporaries, receive the training and the Board is invited to participate. There are four available sessions scheduled; Wednesday, June 23, 2010 and Thursday, June 24, 2010 from 9:30 a.m. to 11:30 a.m. or 1:30 p.m. to 3:30 p.m. on both days. The trainers are from the Hanson, Bridgett Law Firm and have done an excellent job in the past. 4) Acting General Manager Randy Musgraves announced that the District will host a public workshop on Thursday, May 27, 2010 from 7 p.m. to 8 p.m. at the Martinez City Council meeting room regarding the Martinez Sewer Renovation (Phase 3). This is the third phase of sewer renovations in Martinez. Approximately 5,200 linear feet of 6 and 8 inch sewer line will be replaced using open-cut, pipe-bursting, and directional drilling techniques in various locations in the city. Additionally, the District will be working cooperatively with the City of Martinez to replace a storm drain ' along side one of our sewer mains being renovated. The project is scheduled to be awarded in July, and to begin construction in August. 5) Acting General Manager Randy Musgraves announced that the District hosted a public workshop on Hall Drive Sewer Renovations (Phase 2B) at Orinda Intermediate School on Wednesday, May 12, 2010 from 7 p.m. to 8 p.m. There were nine attendees who wanted general information but had no opposition to the project. Project topics discussed were construction impacts, paving and property restoration, lateral replacement, and construction schedule/notification. 6) Acting General Manager Randy Musgraves announced that, at the Local Agency Formation Commission (LAFCO) regular meeting on Wednesday, May 12, 2010, they approved District Annexation 174 for 92 Acres (80 properties) in the Town of Danville and unincorporated area of Alamo. 7) Acting General Manager Randy Musgraves announced that the Treatment Plant Cathodic Protection Improvement Project will implement recommendations from the 2007 Cathodic Protection Master Plan. The project will install seven deep well and three distributed bed anodes to protect the underground metal piping infrastructure of the Treatment Plant. , Additionally, the project will modify and replace worn components in the existing cathodic protection system. Book 60 -Page 58 Board Minutes of May 20, 2010 ' The project will be advertised on May 24 and 31, 2010. Bids will be opened on June 7, 2010. The construction cost is estimated at $400,000. More information will be presented when the Board is asked to approve the construction contract. 8) Acting General Manager Randy Musgraves announced that the Household Hazardous Waste Collection Facility (HHWCF) Reuse Room will be closed May 17, and May 19 through the 21, 2010 due to construction activities related to the HHWCF Improvements Project. On May 17, the contractor will be removing a temporary wall, shelving, and repairing conduit holes in the floor. The Reuse Room concrete floor will be refinished from the 19 through the 21. The Reuse Room will reopen on Saturday, May 22, 2010. In a later update, Mr. Musgraves announced that the closure has been postponed, and the Board will be notified of the new closure dates. 9) Acting General Manager Randy Musgraves announced that natural gas prices have been fairly flat for the past six weeks but appear to be starting their upward trend toward summer. On May 7, 2010, the District purchased the remaining one-third of the Treatment Plant natural gas for ' January through December 2011 at Pacific Gas and Electric Citygate price of $5.86 per decatherm (dth). The average Citygate price for our pre- purchased natural gas for 2011 is $5.90 per dth or $6.20 per dth burner tip. Staff is also looking for buying opportunities-for natural gas for 2012. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT The Secretary of the District announced the upcoming Recycled Water and Capital Projects Committee meetings. 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. J Book 60 -Page 59 Board Minutes of May 20, 2010 Member Hockett Member Hockett reported on her attendance at the May 14, 2010 Contra ' Costa Council meeting -Health Care Reform: What Legislation Means to You. Member Lucey Members Lucey and Menesini reported on the May 12, 2010 Human Resources Committee meeting and summarized the Action Summary. The Board accepted the report without comments. Member Neiedly Members Nejedly and Hockett reported on the May 17, 2010 Budget and Finance Committee meeting and summarized the Action Summary. Member Nejedly requested that consideration of continuation or termination of the Capacity Fee Deferral Program be placed on the next Board agenda. Member Menesini Member Menesini reported on his May 19, 2010 general business meeting ' with City of Martinez officials, stating that they had suggested more frequent meetings and a presentation to the Martinez City Council. President McGill President McGill provided a written report on his meeting attendance. 3) Announcements President McGill provided a written report covering Announcements and upcoming meetings. 7. BUDGET AND FINANCE a. RECEIVE THE FISCAL YEAR 2010-2011 OPERATIONS AND MAINTENANCE BUDGET AND THE FISCAL YEAR 2010-2011 DEBT SERVICE FUND BUDGET Controller Debbie Ratcliff presented information on the proposed FY 2010-2011 Operations and Maintenance Budget and the FY 2010-2011 Debt Service Fund Budget. She stated the revenue assumptions include the Sewer Service Charge of $311, which ' reflects no increase for 2010-11. Of that, $300 is allocated to Operations and Maintenance, and $11 to Sewer Construction. Total Ad Valorem tax is $12.9 million. Book 60 -Page 60 Board Minutes of May 20, 2010 Expense assumptions include the allocation of $7.5 million for GASB 45 post retirement ' benefits. This amount is an estimate as the actuary has not provided the final report yet. This does not reflect any reduction for the new Tier 3. A 1.31 percent increase in the rate for in retirement expenses is assumed, as well as increases to health care costs for active and retired employees. The Administrative Overhead percentage is assumed to be 117 percent of capitalized salary, and vacancy factors of 3 percent for salaries and 4 percent for benefits. Total District revenues are expected to be $81,996,000 without a sewer service charge increase, or $84,695,000 with a $16 rate increase. Expenses are expected to be $91,430,000. Projected revenues show an increase of 1.1 percent over 2009-10, and expenses an increase of 5.4 percent. She described key budgeted labor costs and key budgeted increases over the 2009-10 budget. Salaries are projected to increase by 4.0 percent, benefits by 18.5 percent, while utility rates are expected to decrease by 12.6 percent. The 2010-11 budget represents a 5.4 percent increase over the 2009-10 budgeted figures. 8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 9. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Nejedly requested that consideration of continuation or termination of the Capacity Fee Deferral Program be placed on the next Board agenda. 10. CLOSED SESSION The Board recessed at 2:40 p.m. to reconvene in closed session regarding the following matters: a. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: Director of Administration Randall Musgraves; Human Resources Manager Cathryn Freitas; Secretary of the District Elaine Boehme Employee Organizations: Employees' Association, Public Employees' Union, Local One; CCCSD Management SupporUConfidential Group (MS/CG); CCCSD Management Group b. Conference with Legal Counsel -Anticipated Litigation -initiation of litigation pursuant to Government Code Section 54956.9(c) -one potential case. ' The Board reconvened in open session at 3:03 p.m. Book 60 -Page 61 Board Minutes of May 20, 2010 11. REPORT OUT OF CLOSED SESSION , None. 12. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 3:04 p.m. ~1- Michael President of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: ~~~~ Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 60 -Page 62