HomeMy WebLinkAboutBOARD MINUTES 07-15-10
MINUTES OF THE REGULAR MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON JULY 15, 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, July 15, 2010.
President McGill called the meeting to order and requested that the Secretary call roll.
1. ROLL CALL
PRESENT: Members: Hockett, Lucey, Menesini, McGill
ABSENT: Members: Nejedly
a. PLEDGE OF ALLEGIANCE TO THE FLAG
Board and staff joined in the Pledge of Allegiance.
b. INTRODUCTIONS
Board Members welcomed newly-hired Construction Inspector, Scott Kahlor, and newly-
hired Plant Operator II, Jonathan Searcy.
2. PUBLIC COMMENTS
There were no public comments.
3. CONSENT CALENDAR
It was moved by Member Hockett and seconded by Member Menesini to adopt the
Consent Calendar as recommended. Motion passed by the following vote of the Board:
AYES: Members: Hockett, Lucey, Menesini, McGill
NOES: Members: None
ABSENT: Members: Nejedly
a. Approve expenditures dated July 15, 2010. Reviewed by Budget and Finance
Committee.
b. Approve minutes of June 17, 2010 Board meeting.
c. Adopt Resolution 2010-047 accepting an offer of dedication from Alhambra
Venture, LLC for an easement in the city of Martinez, shown on the map of
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Board Minutes of July 15, 2010
Subdivision 8330, Job 5520, Parcel 3, and authorize staff to record documents
with the Contra Costa County Recorder.
d. Adopt Resolution 2010-048 accepting an offer of dedication from Shapell
Industries, Inc. for an easement in the unincorporated area of Danville, shown on
the map of Subdivision 8002, Job 5456, Parcel 1, and authorize staff to record
documents with the Contra Costa County Recorder.
e. Confirm publication of a summary of uncodified District Ordinance No. 258
adopting a schedule of capacity fees, rates and charges in accordance with
District Code Chapter 6.12.
f. Confirm publication of a summary of uncodified District Ordinance No. 259
adopting a schedule of environmental and development-related rates and
charges in accordance with District Code Chapter 6.30.
4. PUBLIC HEARINGS
a. PUBLIC HEARING TO CONSIDER APPROVAL OF THE SUNNYBROOK ROAD
CONTRACTUAL ASSESSMENT DISTRICT (CAD) NO. 2010-1, DISTRICT
PROJECT 6476, IN ALAMO; FIND THE PROJECT EXEMPT FROM CEQA;
ADOPT A RESOLUTION OVERRULING PROTESTS; ADOPT A RESOLUTION
CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE
XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING THE ENGINEER’S
REPORT, ASSESSMENT AND ORDERING IMPROVEMENTS; AUTHORIZE A
$158,900 ALLOCATION FROM THE COLLECTION SYSTEM PROGRAM
CONTINGENCY; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE
AN AGREEMENT WITH THE SUNNYBROOK ROAD PARCEL OWNERS
General Manager James Kelly stated that this matter was reviewed and recommended
for approval by the Budget and Finance Committee. He stated that a group of property
owners on Sunnybrook Road in Alamo have requested that the District form a
contractual assessment district (CAD) to finance extension of a sewer main for their
neighborhood so they can connect to the District public sewer system. Formation of the
Sunnybrook Road CAD No. 2010-1 was initiated by the Board in May 2010. To
continue this process, the Board needs to conduct a public hearing, adopt resolutions,
authorize allocation of funds, and authorize execution of agreement with parcel owners.
Provisional Senior Engineer Sasha Mestetsky stated that the Board initiated the CAD
program on May 6, and this is the second step in the process. The Sunnybrook Road
main sewer extension is located in Alamo. The Engineer’s Report determined that it
meets the CAD criteria and would benefit 16 properties. It consists of 610 feet of 8-inch
sewer. The main sewer construction estimate is between $130,000 and $160,000, with
the cost per property ranging between $8,000 and $10,000. If all sixteen properties
participate, the cost per property will be $8,000-$10,000, or an annual payment of
$1,100 to $1,300. He noted that the District received nine votes in support of the CAD
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Board Minutes of July 15, 2010
and none opposed. A neighborhood meeting was held on June 24. He stated that staff
recommends approval of the CAD.
The public hearing was opened.
Steven Savage, resident of Sunnybrook Road, expressed support for formation of the
CAD, and stated that he would like construction to begin in August. He asked the Board
to consider authorizing the financing of connection fees. He stated that he is aware of
14 properties who would participate if the fees can be financed, and eight to nine of
those properties would hook up immediately. Whereas, perhaps only six or less would
participate if the connection fees are not financed.
Member Hockett, Member of the Budget and Finance Committee, stressed the
importance of people connecting to the sewer, and stated that the Committee reviewed
the matter at its last meeting and recommended authorizing financing of the connection
fees.
Director of Engineering Ann Farrell reviewed past policy and stated that, with regard to
the possible financing of capacity fees, it is industry standard and District past practice
to require payment of the capacity fee at the time of connection. For high demand
users, where the fees are prohibitively high, such as restaurants, the District and others
have allowed payment over time. In the case of the Alhambra Valley Assessment
District, the District made an exception because District funds were invested in
construction of the trunk sewer and therefore the District wanted to encourage
connections. The Board recently directed staff to establish a capacity fee deferral
program due to the poor economy, and that has received limited use. More recently,
the Board requested that staff develop a two-year payment plan for a capacity fee
delinquency.
She noted that assessments are only supposed to include costs for public facilities, and
therefore exclude laterals and possibly capacity fees. She stated that if fee deferral is
allowed for CADs, then there is no rationale for denying it to other residential
connectors, such as a neighbor down the street who is not part of the CAD. She stated
that the Board has often stated they wish to encourage septic tank abandonment. A
more rational policy would be to consider financing connection fees only for those
connectors abandoning septic tanks who have a financial hardship.
Member Lucey stated that he does not support financing the connection fees and
changing past District practice.
In response to a question from Member Hockett, Principal Engineer Jarred Miyamoto-
Mills stated that the Budget and Finance Committee supported the notion of financing
the capacity fee for the Sunnybrook CAD, but did not discuss whether it should be a
separate pilot program limited to septic conversions.
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Board Minutes of July 15, 2010
President McGill stated that he would like to finance the connection fee, and asked for
Counsel input. District Counsel Kent Alm stated that most attorneys would recommend
against financing the connection fees as part of an assessment district, but that it is
somewhat of a gray area. He stated that it may be better to include it as a fee deferral
program instead of an assessment, from a legal standpoint.
The public hearing was closed.
It was moved by Member Menesini and seconded by Member Hockett to find that the
project is exempt from CEQA; to adopt Resolution 2010-049 overruling protests; to
adopt Resolution 2010-050 confirming compliance with California Constitution, Article
XIIID, Section 4; to adopt Resolution 2010-051 approving the Engineer’s Report,
assessments, and ordering improvements; to authorize a $158,900 allocation from the
Collection System Program contingency; and to authorize the General Manager to
execute an agreement with the Sunnybrook Road parcel owners. The Board also
directed staff to schedule a public hearing to consider financing the connection fees for
property owners who are converting from septic to sewer.Motion passed by the
following vote of the Board:
AYES: Members: Hockett, Lucey, Menesini, McGill
NOES: Members: None
ABSENT: Members: Nejedly
b. PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION DIRECTING
THAT THE 2010-11 ASSESSMENT FOR VIA VAQUEROS ALHAMBRA
VALLEY ASSESSMENT DISTRICT (2008-7) BE COLLECTED ON THE
CONTRA COSTA COUNTY TAX ROLL
General Manager James Kelly stated that the Via Vaqueros Alhambra Valley
Assessment District project was completed this year and the Board has levied final
assessments on the benefiting properties. Of the five participating properties, four have
paid their assessments upfront and one is choosing to finance it over time on the
County Tax Roll. To accomplish this, the Board needs to conduct a public hearing and
adopt a resolution directing that the 2010-11 assessment for the Via Vaqueros
Alhambra Valley Assessment District (2008-7) be collected on the Contra Costa County
Tax Roll.
The public hearing was opened and closed without comments.
It was moved by Member Menesini and seconded by President McGill to adopt
Resolution 2010-052 directing that the 2010-11 assessment for Via Vaqueros Alhambra
Valley Assessment District (2008-7) be collected on the Contra Costa County tax roll.
Motion passed by the following vote of the Board:
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Board Minutes of July 15, 2010
AYES: Members: Hockett, Lucey, Menesini, McGill
NOES: Members: None
ABSENT: Members: Nejedly
5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
None.
6. REPORTS
a. GENERAL MANAGER
1) Board review of current District pay elements as recommended by Contra
Costa County Grand Jury Report dated May 18, 2010.
General Manager James Kelly stated that the 2009-2010 Contra Costa Grand
Jury has recommended that the District Board and the Contra Costa County
Employees’ Retirement Association Board review the list of current pay elements
and determine which elements are required to be included by law. The District is
to respond by July 17, 2010.
At the July 1, 2010 Board meeting, staff presented a draft response to the Contra
Costa County Grand Jury report. The Board concurred with all responses except
for item #3.
Director of Administration Randy Musgraves stated that the Board had reviewed
the draft response, and had directed staff to provide it with a review of the
District’s pay elements to fulfill the response to Recommendation #3:
“3. Within 120 days of this report CCCERA and its employer members shall
review the list of current pay elements to determine which elements are required
to be included by law, which are optional and which by law are to be excluded. If
a pay element is not permitted by law, action shall be taken to comply with the
law. Additionally, a review shall be done when employee labor contracts or
agreements are negotiated.
The recommendation has been implemented. A detailed listing of all terminal
pay codes and pay types has been provided to the Board (see Attachment). The
CCCERA staff reviewed all District pay codes for retirement benefit calculation
and directed CCCSD staff regarding their inclusion or exclusion for retirement
benefit calculations. CCCERA found all District pay elements included in the
final compensation are allowed by law.
Regarding the last sentence of this recommendation, our labor contracts run until
April 17, 2012. The District plans to review the pay codes and types before the
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Board Minutes of July 15, 2010
next negotiations to ensure that there have been no changes in law since the last
review was conducted.”
Mr. Musgraves explained the Recommendation and the District’s response. He
summarized the additional material presented to the Board, explaining that
CCCERA determined and directed District staff regarding the pay elements to
include in the final annual salary used for retirement benefit calculation while the
District’s Memoranda of Understanding with the three bargaining groups
contractually identify the amount paid for pay elements. The Board has little
ability to make changes because CCCERA has the authority over final annual
salary pay elements and the Memoranda of Understanding with the three
bargaining groups are contractually agreed to until April 17, 2012.
He stated that it has been suggested that part of the response should be revised
to say, “It is our understanding that CCCERA found all District pay elements
included in the final compensation are allowed by law.”
He noted that the Board could approve the final response as recommended, or it
could choose to defer review of the pay elements for up to 120 days, from the
date of the Grand Jury report.
The Board unanimously agreed that the response should be sent as proposed by
Mr. Musgraves, stating that the pay codes have been reviewed by the Board.
2) General Manager James Kelly announced that the Water Environment
Federation Technical Exhibition and Conference is being held from
October 2-6, 2010, at the New Orleans Morial Convention Center. This is
the largest such exhibition in the world and offers a wide array of
information from technical papers to demonstrations of new technology.
The deadline for early registration discounts is July 15, 2010. Associate
Engineer Craig Mizutani has had a paper accepted describing the
District’s mercury removal pilot test on the incinerators and staff is
recommending that he attend. In addition, Board Member Barbara
Hockett, General Manager James Kelly, Director of Engineering Ann
Farrell, and Plant Operations Division Manager Randy Grieb plan to
attend. Ms. Farrell, who is on the Water Environment Research
Foundation Board, has been asked to attend by the Foundation. Mr.
Kelly, Ms. Farrell, and Mr. Grieb will use their professional reimbursement
account funds.
3) General Manager James Kelly announced that the California Water Bond,
Proposition 18, is on the November 2, 2010 ballot in California as a
legislatively-referred proposition. If voters approve, the water bond
proposition will allow the State government to borrow $11.1 billion to make
improvements to the state's water system. On June 29, 2010, Governor
Arnold Schwarzenegger stated that he was going to ask the California
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Board Minutes of July 15, 2010
State Legislature to pull Proposition 18 from the November ballot due to a
lack of support from the electorate. The Governor will need a two-thirds
vote of the legislature to pull it. District staff has been holding off bringing
a revised position paper to the Board to take a formal position on the bond
while information is gathered on what positions others are taking. Due to
the possibility that the bond proposition will be pulled from the ballot, many
other jurisdictions are taking a wait-and-see approach and have not
adopted a formal position. Staff's recommendation is to wait another
month or two before bringing back a position paper regarding the bond
and wait to see what action the legislature takes.
Member Lucey noted that the Board had previously reviewed a resolution
opposing the California Water Bond and requested an update on the
status of that resolution.
President McGill stated that he had requested some modifications to the
content of the resolution when it was last reviewed by the Board.
General Manager James Kelly stated that he will place the matter on the
August 5, 2010 Board meeting agenda.
4) General Manager James Kelly announced that the existing elevators on
the Treatment Plant site were installed in 1975. They frequently require
repairs and are near the end of their useful life. Failure of any of these
elevators would cause safety and Plant reliability issues. This project will
upgrade the electronics and controls for both the passenger and freight
elevators in the Solids Control Building. Additionally, both will be updated
to current fire code standards. This project will be advertised on July 30
and August 6, 2010. The bids will be opened on August 18, 2010. The
construction cost is currently estimated at $500,000. More information will
be presented when the Board is asked to approve the construction
contract at the September 2, 2010 Board Meeting.
5) General Manager James Kelly announced that the District's Standard
Specifications for Design and Construction were last updated in 1993.
Staff comprehensively reviewed and reformatted the document to make it
more user-friendly and to incorporate the latest information on new
materials, methods and technology. During this period, a number of
interim revisions covering specific technologies and practices, such as
pipe bursting and directional drilling, were issued. The updated document
"CCCSD Standard Specifications for Design and Construction, 2010
Edition” is now ready for publication. Staff has conducted an extensive
outreach program to inform and solicit input from interested engineers,
contractors, developers and other like agencies. A public hearing for the
Board to receive comments and consider adopting the new document is
scheduled for August 5, 2010.
Book 60 – Page 103
Board Minutes of July 15, 2010
6) General Manager James Kelly announced that the District is participating
in a cooperative bid for sodium hypochlorite. The Bay Area Chemical
Consortium (BACC) is a cooperative group of public agencies acting
collectively to seek competitive sealed bids for the supply and delivery of
sodium hypochlorite. Sealed bids were received on June 11, 2010. Olin
Chlor Alkali Products was the low bidder at $0.639 per gallon. Four
vendors participated in this bid and the bids ranged from $0.639 per gallon
to $0.869 per gallon. If District usage remains consistent with previous
years, the District will save approximately $20,000 over the next year for
the supply and delivery.
7) General Manager James Kelly announced that, when the Martinez
Easement Acquisition Program began in the late 1980’s, approximately
200 existing sewer segments on private property were identified as not
having easements of record. Since that time, the number of segments
where easement rights need improvement has been reduced to less than
50. The reduction was accomplished through pursuing prior phases of
this program in collaboration with the City of Martinez; relocation of some
sewers from backyards to street alignments; easement evaluation and
acquisition for a number of sewer renovation projects; and through title
research that located easements of record for several segments.
Staff has begun discussions with the City of Martinez to initiate the next
phase of the program for resolution of the remaining sites. Priority if being
given to segments that will be included in upcoming sewer renovation
projects.
8) General Manager James Kelly announced that, on July 9, 2010, the
District purchased the first third of the Treatment Plant natural gas for
January through December 2012 at Pacific Gas and Electric Citygate price
of $6.00 per decatherm (dth). Natural gas prices have continued to
remain depressed as the economy struggles to recover and gas storage is
above average. The District’s consultant, Valtech Energy Systems, has
recommended purchasing 2012 gas at this time to lock in pricing to avoid
future escalating energy costs.
b. COUNSEL FOR THE DISTRICT
No reports.
c. SECRETARY OF THE DISTRICT
Secretary of the District Elaine Boehme announced the upcoming Outreach
Committee meeting on July 21, 2010.
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Board Minutes of July 15, 2010
Ms. Boehme also reminded Board Members that their Form 460s or Form 470s
are due by the end of the month.
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 reported on the July 12, 2010 Budget and Finance
Committee meeting and summarized the Action Summary. The Board
accepted the report without comments.
President McGill
President McGill reported on his attendance at the July 1, 2010 Contra
Costa County Mayors’ Conference meeting and provided a written report
on other meetings attended.
a. Provide direction regarding nomination of one of the following
candidates as representative to the California Special Districts
Association (CSDA) Board for Region Three, Seat B for a three-
year term.
Sherry Sterrett (incumbent)
o
Kathryn Slater-Carter
o
President McGill stated that there is an upcoming election of a
representative to CSDA Region Three, Seat B, and requested
direction from the Board.
The Board unanimously directed President McGill to nominate
Kathryn Slater-Carter as representative to the California Special
Districts Association (CSDA) Board for Region Three, Seat B.
b. Provide comments on proposed amendments to California Special
Districts Association Bylaws.
President McGill noted that CSDA is proposing changes to their by-
laws, which appear to be perfunctory. He stated that the Contra
Costa Chapter of the CSDA meets on Monday July 19, 2010, and
will discuss the proposed changes. He suggested that, unless the
Board had comments, he would submit the ballot in favor of or
Book 60 – Page 105
Board Minutes of July 15, 2010
opposing the changes following his attendance at the July 19
meeting. The Board concurred with his recommendation.
2) Announcements
President McGill provided a written report covering Announcements.
Member Menesini announced the upcoming Environmental Alliance
meeting on July 19, 2010.
7. ENGINEERING
a. ADOPT A RESOLUTION APPROVING EXTENSION OF THE TIME PERIOD
FOR PROPERTY OWNERS TO PARTICIPATE IN THE ALHAMBRA VALLEY
ASSESSMENT DISTRICT (AVAD) PROGRAM TO JUNE 30, 2015
Member Hockett announced that the Budget and Finance Committee reviewed this
matter and recommended approval.
General Manager James Kelly stated that staff is recommending that Alhambra Valley
property owners be allowed an additional five years to opt to participate in Alhambra
Valley Assessment District financing. There would be no added cost to the District to
make this opportunity available, and it is hoped that the time extension will encourage
some property owners to participate who might not otherwise do so. So far, one
property owner on Wanda Way has asked to finance AVAD payments.
It was moved by Member Hockett and seconded by Member Menesini to adopt
Resolution 2010-053 approving extension of the time period for property owners to
participate in the Alhambra Valley Assessment District (AVAD) Program to June 30,
2015. Motion passed by the following vote of the Board:
AYES: Members: Hockett, Lucey, Menesini, McGill
NOES: Members: None
ABSENT: Members: Nejedly
8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None.
9. SUGGESTIONS FOR FUTURE AGENDA ITEMS
Staff to schedule a public hearing to consider financing Connection Fees for the
Sunnybrook Road CAD.
Staff to bring back a resolution previously considered by the Board on May 6, 2010
opposing the California Water Bond Proposition entitled “Safe, Clean, and Reliable
Book 60 – Page 106
Board Minutes of July 15, 2010
Drinking Water Supply Act of 2010," which has been placed on the November 2, 2010
ballot.
10. CLOSED SESSION
The Board recessed at 3:00 p.m. to reconvene in the Caucus Room in closed session
regarding:
a. Conference 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 recessed at 3:12 p.m. to reconvene in the Board Room in open session.
11. REPORT OUT OF CLOSED SESSION
District Counsel Kent Alm reported that the Board voted unanimously (4-0) to approve a
settlement agreement with Matthew Parkinen in the amount of $10,000, case to be
dismissed, both parties to bear own attorney's fees, for a full and final settlement
including a Civil Code Section 1542 waiver by Mr. Parkinen.
12. ADJOURNMENT
' There being no further business to come before the Board, President McGill adjourned
the meeting at 3:13 p.m.
'%)
C., /''-
Michael R.
President of t~ Board of Directors,
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
- '~°~<t
~~ ~COUN~T"ERSIGNED:
.~~
~~
' % ~~~ --Efaine` R.;Boehme
^ Secretary of the Central Contra Costa
' ~ Sanitary District, County of Contra Costa,
State of California
Book 60 -Page 107