HomeMy WebLinkAboutBOARD MINUTES 11-04-10MINUTES OF THE REGULAR MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON NOVEMBER 4, 2010
The Board of Directors of the Central Contra Costa Sanitary District convened in a regular
meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of
California, at 2:00 p.m. on Thursday, November 4, 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
The Board and staff joined in the Pledge of Allegiance.
2. PUBLIC COMMENTS
Mt. View Sanitary District Board President and Contra Costa Special Districts Association
Chapter ( CCSDA) Member Stanley Caldwell thanked the Board for the District's work in
publishing the updated CCSDA membership directory and for past administrative support to .
the Chapter. He announced that the Chapter received the Chapter of the Year award from the
California Special Districts Association, and added that the Chapter will be celebrating its 20th
anniversary shortly.
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 November 4, 2010. Reviewed by Budget and Finance
Committee.
b. Receive September 2010 Financial Statements and Investment Reports. Reviewed by
Budget and Finance Committee.
C. Approve minutes of October 7, 2010 Board meeting.
d. Confirm publication of a summary of District Ordinance No. 261 (uncodified) —
establishing the "Standard Specifications for Design and Construction, 2010 Edition" as
the District's standard specifications in accordance with District Code Section 9.08.010.
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Board Minutes of November 4, 2010
e. Confirm publication of a summary of District Ordinance No. 262 (uncodified) —
' establishing reimbursement fees for the properties which could directly or indirectly
connect to District Project 5919 (Alhambra Valley Trunk Sewer AVAD 2007 -1); and
directly connect to Job 6412 (Monteira AVAD 2007 -4); Job 6439 (Reliez Valley AVAD
2007 -3); Job 6441 (Quail AVAD 2007 -6); Job 6442 Gordo n /Millthwait AVAD 2007 -2)
and Job 6450 (Via Vaqueros AVAD 2008 -7) in Alhambra Valley.
f. Confirm publication of a summary of District Ordinance No. 263 — adopting an
amendment to Chapter 6.12 of the District Code to provide an option for installment
payment of capacity fees when a property owner connects an existing home to the
District's public sewer system and concurrently abandons the septic tank system
serving the property.
g. Adopt Resolution 2010 -094 authorizing the execution and recording of quitclaim deeds
for sewer easements to James Jordan and Christie Batterman- Jordan, Cynthia Martin -
Field, Nathalie Musson, Allen Gruen, James and Linda Landau, Dedrick and Linda
Anderson, and Leonard and Louella Snyder (Job 165), and authorizing staff to record
documents with the Contra Costa County Recorder.
h. Adopt Resolution 2010 -095 accepting grants of easements from Wayne White, Harold
and Kathaleen Radke, Don Green and Laurel Gaiser, C. L. and Helen Ann Morris,
Ronald Vanes, Jeremy Kangas and Melissa Taylor, Amanda Cordero, Richard and
Nancy Del Fiorentino, property owners in the Green Street neighborhood, Martinez
(District Project 5952 — Parcels 1 -9'), and authorizing staff to record the documents with
the Contra Costa County Recorder.
4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
None.
5. BIDS AND AWARDS
a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $387,431 TO
ELEVATOR TECHNOLOGY, THE LOWEST RESPONSIVE BIDDER FOR THE
TREATMENT PLANT ELEVATOR MODERNIZATION DISTRICT PROJECT 7281
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 Elevator Modernization will
modernize the passenger and freight elevators in the Solids Conditioning Building. The
elevators were installed in the 1970s and have experienced increasing breakdowns. Four bids
were opened on October 14, 2010 ranging from $387,431 to $699,760. Staff conducted a
technical and commercial review of the bids and determined Elevator Technology the lowest
responsive bidder with a bid amount of $387,431. Staff recommends finding the project
exempt from CEQA, awarding a construction contract to Elevator Technology, and authorizing
the General Manger to execute the Contract Documents.
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Board Minutes of November 4, 2010
Member Nejedly asked why, if the low bid was $387,431, the project amount is $600,000, '
stating that $212,569 is a high figure for contingency, construction management and other
costs. He asked why such a large amount was included in the project cost. Director of
Engineering Ann Farrell stated that staff does not anticipate using the full amount for the
project. She stated that staff will look into the matter and obtain additional information.
It was moved by Member Menesini and seconded by Member Nejedly to continue the item to
November 18, 2010 to obtain additional information on the projected project cost. Motion
passed by unanimous vote of the Board.
6. REPORTS
a. GENERAL MANAGER
1) Report on most re cent CCCERA board meetin
General Manager James Kelly stated that, on November 3, 2010, the Contra Costa
County Employees' Retirement Association Board ( CCCERA) met and received a
presentation by the Segal Company on the Actuarial Valuation and Review as of
December 31, 2009, which included the effects of de- pooling.
Director of Administration Randy Musgraves provided a summary of the meeting and
the Actuarial Valuation. He noted that John Bartel, the District's Actuary, will follow with
'
a presentation with findings regarding his evaluation of Segal's calculations for de-
pooling.
Mr. Musgraves stated that the District's request for additional data was accepted by the
CCCERA Board and the CCCERA Board was asked to look at phase -in options to the
impact of de- pooling for those employers with significant increases.
Mr. Musgraves stated that the beginning Unfunded Actuarial Accrued Liability (UAAL)
as of December 31, 2009 was $35,151,461. Losses during 2008 and 2009 of
$3,708,278 and $10,118,261, respectively, together with a 2009 assumption change of
$2,003,000 and de- pooling costs of $20,037,235, resulted in an ending UAAL of
$71,018,235. He presented charts and graphs of the November 3, 2010 actuarial
valuation as of December 31, 2009, including valuation results for CCCERA, relative
values of market value, actuarial value of assets for years ended December 31, 2000
through 2009, and market, actuarial and valuation value rates of return for years ended
December 31, 2000 through 2009.
Changes in economic assumptions include changing the investment return from 7.8% to
7.75% and changing inflation from 3.75% to 3.5 %. Future administration /investment
expense was increased from 0.55% to 0.60 %.
'
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Board Minutes of November 4, 2010
Mr. Musgraves described other rate assumptions that lead to increases and decreases;
' they include an increase in retirement age and terminal pay, and decreases in mortality
rates, disability rates and individual salary increases.
Mr. Musgraves displayed a chart showing the impact of the proposed de- pooling on
various agencies, and explained the possible impact on the District. He then presented
the following chart reflecting the District's contributions for Fiscal Years 2006 -07 through
2009 -10, and projected contributions for Fiscal Years 2010 -11 and 2011 -12 if de-
pooling proceeds as proposed, including the possible impact on the District's Sewer
Service Charge:
District Impact on
Fiscal Year Contribution Sewer Service Charge
2006 -2007 $ 8,045,860 $50
2007 -2008 8,757,706 53
2008 -2009 9,085,451 54
2009 -2010 8,801,926 52
2010 -2011 9,848,291 58
2011 -2012 12,292,000 72
Member Lucey opined that the increase need not necessarily be offset by an increase in
' the Sewer Service Charge; a reduction in expenditures could be used to offset the
contribution increases.
Mr. Musgraves concluded his report, noting that the calculations have not been
completed as additional data is needed.
2) Report from District Actuary John Bartel on CCCERA de- pooling
Actuary John Bartel presented the findings of his review of the data provided to him
from the Segal Company as of December 31, 2008. He summarized his conclusions
stating that the methodologies and assumptions are reasonable and fair and do not
appear biased toward an employer, and provide a slightly favorable outcome for the
District. He also raised the policy question or issue of retroactive implementation at
December 31, 2002 and reported that the District's asset allocation is $14.5 million
more favorable for December 31, 2008 ($189.5 million) over December 31, 2002 ($175
million). On November 3, 2010, the District requested the data as of December 31,
2009. Mr. Bartel will evaluate the impact upon the District's asset allocation as of
December 31, 2009 and will report the results. Additional data regarding asset
allocation for all the CCCERA employers also has been requested. After receipt and
analysis of that data, Mr. Bartel can conclude his review of de- pooling methodologies,
assumptions and impacts, as well as the asset allocation impact as of December 31,
2002, 2008 and 2009.
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Board Minutes of November 4, 2010
Director of Administration Randy Musgraves identified the policy issue for the Board as I
to whether or not the Board wants to accept or object to the retroactive implementation
as of December 31, 2002, and if the District had a legal position for an objection.
In response to a question from Member Nejedly regarding whether the information
requested from CCCERA is public record, Mr. Bartel stated that, although he is not an
attorney, he believes it is, but suggested that Member Nejedly ask the District Counsel.
Mr. Bartel confirmed that receipt of information has been slow, due to the nature of the
process and the nature of CCCERA, and that sometimes all the requested information
is not received.
Member Nejedly expressed ongoing frustration with the District not being provided with
information. He requested that staff look into establishing its own, independent
retirement system. If mistakes were made in the past, he would support fixing them and
moving forward. He stated that he does not feel that he can trust the information being
provided by CCCERA. He would like to take action sooner rather than later.
Mr. Musgraves stated that staff is preparing a white paper setting forth multiple options.
He confirmed that it is difficult to obtain data from CCCERA as it has to be presented to
the CCCERA Board before being released.
General Manager James Kelly confirmed that the District only found out it was under- I
contributing in March 2010. Approximately 18 months ago Mr. Bartel was selected to
look at the situation. CCCERA was not interested in looking at it at that time.
Member Lucey suggested that the white paper contain information regarding the District
possibly establishing its own retirement system. He noted that, in his opinion, the
District has the financial strength to do so.
Member Menesini concurred with Member Lucey's comments.
President McGill stated that he would like more information about how retirement and
retirement systems work.
3) Update on Collection System Operations Facility, District Proiect 8208
Senior Engineer Alex Rozul presented an update on the CSO construction project. He
stated that, at the October 21, 2010 Board meeting, it was reported that the contractor
was 32 calendar days behind schedule. The contractor's work is progressing steadily,
with current activities focused on completing the building frame and exterior, and
preparing the site for the wet weather season. As of October 29, 2010, the contractor
remains at 32 days behind schedule, with 272 calendar days remaining. He showed
photographs of the construction site and the progress of the project. '
Member Menesini noted that he and President McGill had toured the site recently and
found it to be impressive.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Board Minutes of November 4, 2010
' 4) Report on homeless near District property
General Manager James Kelly stated that Member Nejedly requested a status report on
the homeless and recent clean -up efforts around District property. A report was
included in the Board agenda packet. In summary, the homeless primarily congregate
under the four bridges on Imhoff Drive and Highway 4 due to their shelter. A significant
amount of trash accumulates at those sites. The District has no legal authority to clean
up or request action because the owner of the property is the County Flood Control.
Staff is dependent upon the County Flood Control staff to contact the Sheriff
Department and request removal. A lengthy process ensues where the Health
Department is first notified to see if it can provide services to the homeless. After that
review is completed, the homeless are notified that the Sheriff will be out in usually
three days to evict them. By the time the Sheriff Deputies arrive, most if not all of the
homeless relocate to nearby areas, often returning soon after the Deputies leave.
District fences have been cut, and material and tools have been stolen. So far, minimal
theft has occurred. Staff remains aggressive in monitoring and contacting County Flood
Control staff as needed. However, staff is dependent upon County Flood Control staff.
At this time, it appears to be a low priority for the County.
Member Nejedly expressed concern regarding potential damage to District property and
impact on District operations. He requested that staff meet with the new Sheriff to
' discuss the problem, and asked that staff contact the Sheriffs Department regularly to
report the problem.
District Counsel Kent Alm stated that he has offered to look into the problem and
different approaches for attempted resolution of the matter.
5) Announcements
a) General Manager James Kelly announced that State Controller, John
Chiang, has announced that his office will now require independent
special districts to begin reporting compensation information for District
officials and staff. This compensation information will include both salaries
and benefits. Cities and counties were required to submit the same
information by October 2010. Special districts will be required to submit
data to the Controller by December 13, 2010. Letters are currently being
sent to special districts outlining the new reporting requirements. District
staff will compile the data and submit it by the deadline.
b) General Manager James Kelly announced that the US Environmental
Protection Agency ( USEPA) released proposed new air standards for
Multiple Hearth Furnaces on October 14, 2010. On October 29, 2010, the
District commented on those standards at USEPA offices in Research
' Triangle Park, North Carolina. The District made three main comments.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Board Minutes of November 4, 2010
The regulatory proposal states that the removal of mercury will yield '
a benefit ranging from $130 - $320 million in medical cost savings
annually. The District asked for a copy of the Health Risk
Assessment so that it could be reviewed. This document
supporting the claim was not part of the Regulatory Proposal.
2. The District provided information that the cost to treat mercury to
the very low levels suggested in the proposed regulation is
approximately $125,000 per pound versus the $6,000 per pound
stated in the proposed ruling. Thus, the nationwide cost is $2
billion per year, not the $105 million suggested in the proposed
regulation, making the cost -to- benefit ratio unjustifiable.
Finally, the District indicated that the Household Hazardous Waste
(HHW) Program and Dental Amalgam programs reduced the
amount of mercury in the plant influent by 70 %. If the total cost of
our HHW program were assigned solely to mercury removal, the
cost would be $24,000 per pound of mercury removed. This does
not consider the very significant benefit of all of the other materials
removed from the environment at our facility, such as paints,
pesticides and herbicides. The District suggested that enhanced
source control is a better mechanism for mercury removal than the
proposed rule. '
In closing, the District commented that by requiring existing
incinerators to remove mercury to these very low limits, wastewater
agencies will be incurring costs that are not justified by the benefits.
The District will submit written comments on the regulation for
delivery to USEPA by November 29, 2010.
COUNSEL FOR THE DISTRICT
District Counsel Kent Alm stated that he may not attend the next two Board meetings
due to scheduling conflicts.
C. SECRETARY OF THE DISTRICT
Secretary of the District Elaine Boehme gave an election update, stating that the official
results will be provided once the election is certified by the County Elections
Department, hopefully by the end of the month. Unofficially, David R. Williams was
elected to the Board and Michael R. McGill was re- elected.
d. BOARD MEMBERS
1) Board Member reports on future meetings or conferences for which they will I
receive the stipend or for which the District will pay their expenses; recent
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Board Minutes of November 4, 2010
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 October 25 -27, 2010
California Association of Sanitation Agencies (CASA) Executive Board Meeting.
Member Neiedly
Members Nejedly and Hockett reported on the November 1, 2010 Budget and
Finance Committee meeting and summarized the Action Summary. The Board
received the report without comments.
President McGill
President McGill and Member Menesini reported on the October 26, 2010
Outreach Committee meeting and the October 26, 2010 Capital Projects
Committee meeting and summarized the Action Summaries. The Board received
the reports without comments.
President McGill and Member Hockett reported on the November 3, 2010
' Recycled Water Committee meeting and summarized the Action Summary. The
Board received the report without comments.
2) Announcements
a) President McGill provided a written report covering Announcements and
other meetings.
b) Member Menesini congratulated President McGill on his re- election to the
District Board.
7. ADMINISTRATIVE
a. CONSIDER RENEWAL OF THE CONTRACT FOR LABOR AND EMPLOYMENT -
RELATED LEGAL SERVICES WITH DANIEL W. CLINTON ESQ. AND HANSON
BRIDGETT LLP FOR THE PERIOD OF JANUARY 1 2011 THROUGH
DECEMBER 31, 2012
General Manager James Kelly stated that the contract for legal services with Hanson Bridgett
LLP will end December 31, 2010. The term of the proposed renewal contract is two years
(January 1, 2011 through December 31, 2012). A contract renewal requires approval by the
Board of Directors. The current rate of $335 per hour for Mr. Clinton will increase to $365 per
' hour (a nine percent increase) in the first year, and $375 per hour (a three percent increase) in
the second year.
Book 6 — Page 169
CENTRAL CONTRA COSTA SANITARY DISTRICT
Board Minutes of November 4, 2010
The District has obtained labor and employment - related legal services from Mr. Clinton for I
over thirty years, and from his associates at Hanson Bridgett since 1998. Mr. Clinton and the
firm have provided outstanding services.
The Human Resources Committee reviewed the contract at its October 13, 2010 meeting and
has recommended Board approval.
It was moved by Member Nejedly and seconded by Member Menesini to approve renewal of
the contract for labor and employment related legal services with Daniel W. Clinton, Esq. and
associates with the law firm of Hanson Bridgett LLP for the period of January 1, 2011 through
December 31, 2012. Motion passed by unanimous vote of the Board.
b. CONSIDER RENEWAL OF THE CONTRACT FOR LEGAL SERVICES WITH
KENTON L. ALM, ESQ. AND MEYERS, NAVE, RIBACK, SILVER & WILSON FOR THE
PERIOD OF OCTOBER 1, 2010 THROUGH SEPTEMBER 30. 2012
General Manager James Kelly stated that renewal of the contract for legal services with
Kenton L. Alm and Meyers, Nave, Riback, Silver & Wilson requires approval by the Board of
Directors. The term of the proposed renewal contract is two years (October 1, 2010 through
September 30, 2012).
He stated that a small hourly rate increase for the Senior Principal, Mr. Alm, is reflected in the
contract. Other hourly rates either had a small CPI increase or remain the same based upon I
Meyers, Nave, Riback, Silver & Wilson rates.
A blended rate is used for calculating the charges for the specified retainer services and will
not be increased for the first year of the contract. Mr. Kelly stated that the retainer is a
substantial amount of the paid legal services and it is of benefit to the District for the retainer to
remain at the current level.
The District has been receiving general legal services and Counsel for the District services
from Mr. Alm since 1985 by a contractual arrangement.
The Budget and Finance Committee reviewed the proposed contract and requested it be sent
to the full Board for their consideration and approval.
It was moved by Member Nejedly and seconded by Member Hockett to approve renewal of the
contract for legal services with Kenton L. Alm, Esq. and associates with the law firm of Meyers,
Nave, Riback, Silver & Wilson for the period of October 1, 2010 through September 30, 2012.
Motion passed by unanimous vote of the Board.
8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
None.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Board Minutes of November 4, 2010
9. SUGGESTIONS FOR FUTURE AGENDA ITEMS
' None.
10. ADJOURNMENT
There being no further business to come before the Board, President McGill adjourned the
meeting at 3:53 p.m.
Michael R. Mc 4 , .
President of the Board of Directors,
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGNED:
--Elaine R. Boelime, CMC
gecfe-tary of the Central Contra Costa
' ,Sanitary District, County of Contra Costa,
.:State of California
Book 6 —Page 171