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HomeMy WebLinkAbout03.c. Approve Minutes of 2-3-11 Board Meeting3.c. MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 3, 2011 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, February 3, 2011. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: McGill, Menesini, Nejedly, Williams, Hockett ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF MAPS OF OLD MARTINEZ SEWER SYSTEM TO MARTINEZ MUSEUM AND MARTINEZ HISTORICAL SOCIETY Engineering Assistant I Kimberly Stahl stated that, with the historical records on loan from the Martinez Museum and Martinez Historical Society, District staff is compiling a database that will be accessible through the Geographical Data Interface. With gratitude for their assistance, the District put together a set of maps of the sewer system in Martinez as it existed before the District assumed responsibility for the majority of the system in the 1970s. President Hockett presented the maps to Ms. Bettye Bloom and Mr. Dunstan G ranshaw, Museum Volunteers for the Martinez Museum who are creating the index cards used to compile the historical resources into one source. 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Williams to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 a. Approve expenditures dated February 3, 2011. Reviewed by Budget and Finance Committee. b. Receive December 2010 Financial statements and Investment Reports. Reviewed by Budget and Finance Committee. C. Approve minutes of Board meetings held on the following dates: 1) December 16, 2010; and 2) January 6, 2011. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. a. GENERAL MANAGER 6. REPORTS 1) Update on Collections stem Operations Facilit District Project 8208 Senior Engineer Alex Rozul presented the regular construction progress update on the Collection System operation Facility project. He showed photos of the construction and reported that the concrete on the roof has been installed, architectural steel is in place, and interior improvements on the first and second floor are complete. The ongoing construction foci include the roof, exterior metal framing, metal stud framing, electrical, plumbing, HVAC and fire sprinkler and the middle yard permeable pavement. In response to a question by Member Nejedly, Mr. Rozul confirmed that the construction is currently twenty -eight days behind schedule. 2) Contra Costa County Employees' Retirement Association (CCCERA) Board update General Manager James Kelly stated that this item is part of Closed Session Item 9.a. to take place later in the meeting. The Board has been provided a copy of the response from Chief Executive Officer of CCCERA Marilyn Leedom to the District's December 27, 2010 letter regarding de- pooling and the CCCERA Board's authority. He stated that no Board action is needed at this point in the meeting. 3) Businesses in Significant Non - Compliance for 2010 General Manager James Kelly stated that two businesses were in significant non- E CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 compliance in 2010: Bay Area Rapid Transit and Saint Mary's College. The notice will be published in the February 9, 2011 issue of the. Contra Costa Times, in accordance with federal regulations. 4) Strategic Plan update General Manager James Kelly presented an update on the Board Strategic Plan, which was instituted on October 31, 2007 and reviewed by the Board on January 7 2010. He noted that a new component has been added to the Plan, entitled "New Challenges." With regard to Recycled Water, he reported that the District has canceled its General Agreement with Contra Costa Water District to provide for more flexibility in developing future projects; is continuing to pursue grant money for the Diamond Boulevard area in Concord; is working with the City of Concord to develop a plan to provide recycled water to the Naval Weapons Station; and is pursuing the Martinez Refinery Project, where cooperation from the Contra Costa Water District is key. There has been little change from last year in Education and Outreach. Three issues of Pipeline are published per year, which are received with favorable public feedback. Registering approximately 1,800 hits a month, the website has been redesigned and includes new informational videos. The pharmaceutical drop -off program now includes eleven sites; the Speakers Bureau and Plant Tours continue; and the City of Concord is using more Pipeline articles in their newsletter. The Board has adopted a policy recognizing the importance of Cultural Diversity. A consultant found that proper efforts have been made in the District's hiring practices, and her suggestions for improvement have been implemented. The importance of cultural diversity has also been included in New Employee Orientation Training. Responsible rates is defined as providing excellent customer service and full regulatory compliance. Overhead is included in all services to others providing for full recovery of costs, and processes and efficiency are continually being improved. Last year's target savings of $1.6 million was exceeded, as the District saved $2.8 million, and refinancing an existing $24 million worth of debt saved about $1 million. Through a favorable bid climate, not hiring non - essential positions, and various other methods of saving, the District has been able.to avoid raising rates for the past two years. Without new challenges, the necessary Sewer Service Charge rate increase for this year would be sixteen dollars, not the twenty discussed last year. The District continues to be an Industry Leader, with thirteen consecutive National Pollutant Discharge Elimination System (NPDES) Platinum Awards and a historic CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 low of forty -three sewer service overflows. The Engineering Department has garnered a number of awards; the District has received nine consecutive Comprehensive Annual Financial Report (CAFR) awards; staff and Board continue to participate in professional organizations; and the operator Training Program is still in effect, with two graduates hired by the District last year. With regard to controlling Cost of Retirement and Employee Benefits, staff compared the CCCERA system to the Public Employees Retirement System (PERS) and found that switching to PERS would be a significant cost to the District, due to the reduction of District assets from the drop in the investment market. In many areas, CCCERA has accepted District staff's comments on CCCERA's policies toward market loss averaging period and de- pooling funding. The District also created a Tier 3, which will reduce long -term exposure, and formed the GASB 45 Trust, which will be used only for health care costs. New Challenges include the AB32 regulations in place this year. As a result, the District will be paying more for energy natural gas and electrical costs. Section 123 regulations are expected to be released in February and may require upgrades to the existing incinerators. Delta discharge standards are driven by the Regional Water Quality control Board, and the District is partnering with Bay Area Clean Water Agencies and State water contractors to conduct studies on what impacts CCCSD's discharge may be having on Suisun Bay. Member Williams asked if there is a strategic plan document with objectives and strategies. General Manager James Kelly stated that staff has authored a business plan that has sought to implement many of the Board's strategic plans, and that this document can be provided to him in the following week. He explained that the Business Plan was an outgrowth of the staff effort that summarized direction from the Board. Member Williams suggested that the District develop an actual strategic plan with a vision, mission and goals, objectives that are near term and strategies to accomplish them. General Manager James Kelly responded that staff uses the business plan on an annual basis to lay out activities for implementation. Member Williams also suggested that infrastructure is critical to the core business of the District, .and perhaps should be added to the Board Strategic Plan. Member Williams stated his support for recycled water, but noted that District ratepayers in the East Bay Municipal Utility District (EBMUD) service are essentially paying double rates to support both CCCSD and EBMUD's recycled water programs. Furthermore, CCCSD ratepayers are subsidizing ratepayers of the Contra Costa Water District (CCWD), Antioch and Pittsburg who are not paying for a recycled water program for which their agency is actually responsible. He stated that recycled water is meeting a water supply need, and CCCSD is picking up obligations that should be funded by Contra Costa Water. District. As CCCSD has wants and needs of its own in terms of core business, Member Williams stated that he does not see the value for CCCSD. 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 Member Williams drew attention to Primary objective 1.b. of the Strategic Plan, which states "continue compliance that exceeds state and federal requirements." He stated that these requirements are set forth in permits and are designed to be protective of resources; therefore, the language should state "meets" as opposed to "exceeds," because it is the job of the regulators to set the standards, which, if they are met, protect the resources. Member Williams questioned if an assessment has been performed on CCCSD's incinerators, given the possible significant expenditure to treat multiple hearth air emissions in accordance with Section 129 of the clean Air Act. Specifically, he asked if there was an analysis of digestion, not looking only at sludge disposal but also potential revenue generation. General Manager James Kelly stated that there has been one such study in the past. An assessment of all three, multiple hearth incinerators, fluidized bed incinerators and digesters, will be conducted to see how best to comply with the anticipated new air regulations. Director of Engineering Ann Farrell added that a greenhouse model of the plant has been built, and staff is incorporating a digester alternative into the model. Staff will consider alternatives and report back to the Board once the Clean Air Act Section 129 regulations are available. Member McGill inquired what is next on CCCSD's docket related to the major headings of the Strategic Plan and what CCCSD is working on going forward into the next couple years. He added that there may be merit in another Board retreat, to take stock and consider the future of the District. Member Williams stated that he would support such a retreat. President Hockett responded to Member Williams' earlier comments on recycled water, stating that she has struggled with promoting the program for several years and has made little headway in terms of working with CCWD and overcoming its budget issues. She noted that her involvement in the Recycled Water Committee felt futile at times. Member Williams stated that he appreciates the work CCCSD has done, but perhaps CCCSD has inadvertently become an enabler for CCWD not to recycle water. President Hockett asked for Member Williams' input and insight, inviting him to attend a Recycled Water committee meeting, or meet with District counsel Kent Alm and General Manager James Kelly. 5) Update on AVADs and CADs General Manager James Kelly introduced Environmental Services Division Manager Curt Swanson to give a history and update on Alhambra Valley Assessment Districts (AVADs) and Contractual Assessment Districts (CADs). Mr. Swanson stated that last year, the Board decided to resume the CAD program on a case -by -case basis, following a six -year hiatus from the program due to declining interest and concerns about the District's budget. He explained that the 5 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2411 purpose of the program is to financially assist homeowners who want to extend the public sewer system to their neighborhoods. Seven CADS of twenty -three from the 1997 -2004 program have been closed out, and the remaining sixteen will be closed out in the next three to five years. There is an outstanding principal of $877,000, and 2010 -2011 payments total $290,000. AVADs, a special type of assessment district, were authorized to be formed in 2007 and extend a trunk sewer and sewer mains into Alhambra Valley. Six have been formed so far, financed at the cost of $1.53 million. Payments to date are $197,000 per year. Future AVADs will continue to be approved individually by the Board. Mr. Swanson noted that a public hearing for the Vista del orinda CAD in the El Toyonal area of orinda is planned for Board consideration in April or May 2011. There is also a $500,000 potential CAD at St. Mary's Road in Lafayette, where owners of twelve of the seventeen properties have shown interest. 6) Consider development of teleconferencing guidelines General Manager James Kelly stated that there has been some recent interest from the Board in teleconferencing following its use at a Special Board Meeting on December 22, 2010. Secretary of the District Elaine Boehme stated that according to sample policies available from other cities and districts, criteria may be established as to when teleconferencing would be permitted and whether Board approval would be needed prior to the teleconferencing event. District Counsel Kent Alm stated that there is one reading of the teleconferencing law that states that prior legislative body approval is required. While there are differing opinions whether this approval is needed on an event -by -event basis, Mr. Alm advised that a policy setting forth guidelines could be helpful. Member Williams expressed his interest in taking a look at developing guidelines. Member McGill noted that he found teleconferencing useful last December, but that the conversation was difficult to hear. He suggested getting a general policy in place to have the option for the Board to evaluate. Member Nejedly stated that teleconferencing is disruptive, takes staff and Board time, is sometimes inaudible, requires special equipment and faces legal issues. He stated that teleconferencing should be on a very occasional basis, as it opens too many doors for Board members and staff to be vacant, and the District would be expending costs for people to essentially be somewhere else. He offered the alternative that, occasionally when necessary, items can be moved for full Board consideration, as has been done in the past. Member Menesini stated that the District needs to be prepared for the emergency case where teleconferencing should be available. He agreed with Member s CENTRAL CONTRA COSTA SANITARY DISTRICT Board !Minutes of February 3, 2011 7) Nejedly that items can be moved as needed, but added that the technology should be available. General Manager James Kelly noted that in the Board room, phone jacks are accessible and the equipment has clearer audio capabilities than what was used at the December 22, 2010 meeting. President Hockett stated that a lot of communication is lost via telephone. While it can be accommodating, there is more value to moving items as needed than teleconferencing meetings. Member Williams asked if there is a planning document where a Board member might see what items might appear on future agendas. General Manager James Kelly stated that such a document exists for staff use and can be provided to the Board. President Hockett noted that she appreciates Member Williams' contributions to the world of water and wastewater and that the calendar of what has to be done in a certain timeframe would be helpful. She stated that items may be moved to accommodate the District's needs and his. Mr. Alm suggested that, at a minimum, a policy be presented to the Board which would give delegation to a chair or staff member to set teleconferencing meetings on an emergency basis to comply with legal guidelines mandating legislative body approval. General Manager James Kelly stated that staff will return to the Board with a draft procedure similar to that described by Mr. Alm. Announcements a) Director of Plant Operations Margaret Orr to Attend NACWA Winter Conference General Manager James Kelly announced that Director of Plant operations Margaret P. Orr, P.E., will travel to Fort Lauderdale, Florida, to attend the National Association of Glean Water Agencies' (NACWA) 2011 Winter Conference on Tuesday, February 1st and Wednesday, February 2n Ms. Orr will attend the Biosolids Management Committee and the Legal Affairs Committee meetings, where the national response to the anticipated sanitary sewer incineration Section 129 regulations, anticipated for release on February 21, 2011, will be discussed. b) Lafayette- Pleasant Hill Road Trunk Sewer Project Public Workshop General Manager James Kelly announced that the District will host a public workshop on Thursday, February 17 from 7:00 to 8:00 p.m. at the Acalanes High School Multi -Use Room located at 1200 Pleasant Hill Road in Lafayette. The work for the Lafayette Pleasant Hill Road Trunk Sewer Project will include the installation of 2,500 feet of new 15 -inch sewer within CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 Pleasant Hill Road and upsizing 3,000 feet of 12 -inch sewer to 18 -inch sewer within residential streets south of Acalanes High School between Stanley Boulevard and Highway 24. The project is scheduled to be awarded in April, and to begin construction in June. c) 2011 General Manager Annual Group Talks General Manager James Kelly announced that he will be conducting his Annual Group Talks in February. During the talks, he will update employees on the state of the District and answer questions. The talks were scheduled at various times so that each employee would have an opportunity to attend. All talks will take place in the Multi- Purpose Room, and an hour and a half has been set aside for each meeting. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced the two upcoming closed sessions scheduled for this Board meeting. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming Capital Projects Committee meeting, scheduled for February 7, and the Human Resources committee meeting, scheduled for February J. d. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses; future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses Member McGill Member McGill reported on the January 27, 2011 Contra Costa Council USA 2011 meeting with keynote speakers Bob Woodward (on the topic of Inside the Obama White House) and The Honorable Willie Brown. He also reported on the January 28, 2011 Pleasant Hill Mayor's Breakfast. Member Npj Member Nejedly and Member McGill reported on the January 27, 2011 Recycled Water committee meeting and summarized the Action Summary. The Board received the report without comments. s CENTRAL CONTRA COSTA SANITARY DISTRICT Board !Minutes of February 3, 2011 Member Nejedly and President Hockett reported on the January 31, 2011 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comments. Member Williams Member Williams reported on the January 24, 2011 Contra Costa Special Districts Association meeting (also Local Agency Formation Commission (LAFCO) election meeting), and stated that from six candidates, Member McGill was elected as the Contra Costa Special Districts representative to LAFCO. President Hockett President Hockett reported on the January 27, 2011 Contra Costa Council USA 2011 meeting with keynote speakers Bob Woodward (on the topic of Inside the Obama White House) and The Honorable Willie Brown. 2) Consider authorizina payment of 221 stipend for Board Member attendance at FebrgM 17 2011 "Pension Boot Camp for Elected officials" one-day conference in Irvine, CA President Hockett stated that this question was posed to her and she asked that it be placed on the Board agenda. She stated that she has already reached the maximum of six compensable meetings scheduled for the month of February. Member McGill, Member Nejedly and President Hockett plan to attend the event in question. It was moved by Member Williams and seconded by Member Menesini to authorize payment of $221 stipend for Board Member attendance at the February 17, 2011 "Pension Boot Camp for Elected Officials" one -day conference in Irvine, CA. Member Nejedly abstained, stating that it did not matter to him either way, as he too has reached the maximum compensable meetings. Motion passed by the following vote of the Board: AYES: Members: McGill, Menesini, Williams, Hockett NOES: Members: None ABSTAIN: Members: Nejedly 3) Announcements a) Announce LAFCO election results — President Hockett Member Williams announced previously in the meeting that Member McGill was elected as the Contra costa Special Districts representative to LAFCO. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 b) Member McGill provided a written report covering Announcements. He also announced that he has received a notice to report to jury duty on March 14, 2311, which may make him unavailable for the March 17 Board meeting. c) Member Williams announced that prior to his election, he scheduled a vacation which will preclude him from attending the February 24 and March 3 2311 Board meetings. He stated his specific interest in the Capital Program, to which General Manager James Kelly responded he would like to keep the Board Financial Plan Workshop as scheduled on March 3. The Proposition 218 notice requires Board approval at the March 17 or April 7 meeting. General Manager James Kelly suggested that staff could meet with Member Williams individually or provide him with the audio recording of the meeting. 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. S. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member McGill requested an assessment of the financial health of the District's ratepayers. Member Nejedly disagreed, stating that it would be a waste of staff time and it is a matter of general knowledge that the majority of people are in poor financial health. President Hockett agreed with Member Nejedly and inquired what difference it would make, to which Member McGill stated it might be useful to have foreclosure figures within the District in anticipation of the Board's future consideration of the Proposition 218 notice. Mr. Alm stated that the request was to place the item on the agenda. As such, the item may be agendized and the Board can decide whether staff should proceed with the request. Mr. Kelly stated that staff has looked at the unemployment rate in the service area on a city -by -city basis and the ad valorem income, which is a rough read on the status of the real estate market, and could provide these figures easily. Member Nejedly stated that Congressman John Garamendi conducted a meeting recently with EBMUD, CCWD, Delta Diablo and CCCSD staff. He stated that it is very important that CCCSD communicate to Mr. Garamendi its position, whether by meeting directly with him or sending him correspondence. He requested an item be placed on a future agenda for consideration of possible action and to move forward with pursuing recycled water projects. 9. CLOSED SESSION The Board recessed at 3:25 p.m. to reconvene in closed session in the Caucus _Room regarding the following matters: 10 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 3, 2011 a. Conference with Legal Counsel — Anticipated Litigation — initiation of litigation pursuant to Government Code Section 54955.9(c) — one potential case — CCCERA De- pooling issue b. Conference with Legal Counsel — Anticipated Litigation — significant exposure to litigation pursuant to Government Code Section 54955.9(b) — one potential case — Gregory Partners RCRA Notice Letter The Board recessed at 4:59 p.m. to reconvene in the Board Room in open session. 10. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that no action was taken in closed session. 11. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 5:00 p.m. Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California 11