HomeMy WebLinkAboutBOARD MINUTES 05-05-11MINUTES OF THE REGULAR MEETING
' OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON MAY 5, 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, May 5, 2011.
President Hockett called the meeting to order and requested that the Secretary call roll.
1. ROLL CALL
PRESENT: Members: McGill, Menesini, Nejedly (arrived at 2:21 p.m.), Williams, Hockett
ABSENT: Members: None
a. PLEDGE OF ALLEGIANCE TO THE FLAG
The Board and staff joined in the Pledge of Allegiance.
b. INTRODUCTION OF THE FOLLOWING NEW EMPLOYEE:
' Board Members welcomed Administrative Services Supervisor of Collection System
Operations, Susan Jocovic.
None.
2. PUBLIC COMMENTS
3. CONSENT CALENDAR
Member Williams requested that Item 3.g. be pulled from the Consent Calendar for separate
consideration.
It was moved by Member Menesini and seconded by Member Williams to adopt Items 3.a. —
V. and 3.h. as recommended. Motion passed by the following vote of the Board:
AYES: Members: McGill, Menesini, Williams, Hockett
NOES: Members: None
ABSENT: Members: Nejedly
' a. Approve minutes of April 7, 2011 Board meeting.
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b. Approve expenditures dated May 5, 2011. Reviewed by Budget and Finance '
Committee.
C. Receive March 2011 Financial Statements and Investment Reports. Reviewed by
Budget and Finance Committee.
d. Set June 2, 2011 at 2:00 p.m. as the date and time for a public hearing to
consider the draft Fiscal Year 2011 -12 Capital Improvement Budget (CIB) and
Ten -Year Capital Improvement Plan (CIP).
e. Set June 2, 2011 at 2:00 p.m. as the date and time for a public hearing to
consider:
1) Adopting the following budgets for Fiscal Year 2011 -12:
Operations and Maintenance Budget,
Debt Service Fund Budget, and
Self- Insurance Fund Budget;
2) Establishing Sewer Service Charge rates for Fiscal Years 2011 -12 and
2012 -13; and
3) Directing that the Fiscal Year 2011 -12 Sewer Service Charges be placed I
on the Contra Costa County tax roll for collection.
Authorize the General Manager to renew the Pollution Prevention Service
Agreement with Mt. View Sanitary District (MVSD) to provide source control
inspections and prepare MVSD's Pollution Prevention Annual Report for a period
of two years, through June 30, 2013, with an option to extend the agreement for
an additional two years.
Authorize the General Manager to extend the existing professional services
agreement with Federal Advocates for lobbying services for federal funding for the
Contra Costa County Refinery Recycled Water project for a period of 12 months,
through May 31, 2012, at a cost of $5,000 per month, increasing the cost ceiling
from $33,000 to $93,000.
Deny claim from National Subrogation Services on behalf of Fireman's Fund
Insurance Company seeking recovery of $12,632.31 paid in conjunction with a
sewage overflow in Diablo on February 20, 2011. Recommended by Budget and
Finance Committee.
With regard to Item 3.g., Member Williams stated that he supports recycling in the District's
service area, but the public should be charged fairly and equitably for public benefit, and he '
believes recycled water to be a public benefit. He reasoned that, by approving this contract,
the District would be double- charging members of the public in its service area who pay East
Bay Municipal Utility District (EBMUD) for its recycled water program. He added that members
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of the public in the District's service area who are Contra Costa Water District (CCWD)
'ratepayers are essentially subsidizing other members of the public in Antioch and Pittsburg.
On the basis that this violates the tenet of fair and equitable charging to the public for public
benefit, Member Williams stated that he would be voting no on Item 3.g.
It was moved by Member McGill and seconded by President Hockett to adopt Item 3.g. as
recommended. Motion passed by the following vote of the Board:
AYES: Members: McGill, Menesini, Hockett
NOES: Members: Williams
ABSENT: Members: Nejedly
4. PUBLIC HEARINGS
a. Conduct public hearings on the following matters:
1) Consider adopting Uncodified Ordinance No. 264 to replace the "Schedule of
Environmental and Development - Related Rates and Charges" adopted pursuant
to Ordinance No. 259 in accordance with District Code Chapter 6.30. Approval
recommended by Budget and Finance Committee. Data is available, as required
by Government Code Title 7, Division 1, Chapter 8, Section 66016.
' 2) Consider adopting Uncodified Ordinance No. 265 to replace the "Schedule of
Capacity Fees, Rates and Charges" adopted pursuant to Ordinance No. 258 in
accordance with District Code Chapter 6.12. Approval recommended by Budget
and Finance Committee. Data is available, as required by Government Code Title
7, Division 1, Chapter 8, Section 66016.
3) Consider adopting Resolution 2011 -014 directing that the following items for
Fiscal Year 2011 -12 be placed on the Contra Costa County tax roll for collection:
• Capacity Use Charges: and
• Assessments for:
• Contractual Assessment Districts (CADs),
• Alhambra Valley Assessment Districts (AVADs), and
• Fee Deferrals.
Principal Engineer Jarred Miyamoto -Mills explained that capacity fees are one -time buy -in fees
charged at the time of connection and are used for capital facility needs. Annual capacity fee
revenue has varied between fifteen and forty -five percent of total Sewer Construction Fund
revenue, since it is dependent on rate of development. Capacity fees are adjusted annually to
avoid larger increases that would be likely for multi -year adjustments. The updated fee
schedule would be effective July 5, 2011.
' Recommended Capacity Fees are $5,465 for Gravity Zone (currently $5,451) per Residential
Unit Equivalent (RUE) and $7,071 for Pumped Zone (currently $7,092). Mr. Miyamoto -Mills
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displayed a table ranking the District's Capacity Fees among other agencies', noting that '
District fees remain comparatively low. He stated that staff estimates that if the new fees are
adopted, 2011 -12 Capacity Fee revenue will be approximately $1,050 per RUE lower than
would be generated under the current rates (assuming 450 new units connect in the Gravity
Zone and 350 new units connect in the Pumped Zone).
Mr. Miyamoto -Mills stated that fifty -six of the environmental and development - related rates and
charges would be increased; twenty -five fees would remain the same; and two fee categories
would be deleted. He explained that the approach to setting the fees is to look at the actual
cost of the provided service. Generally, the adjustments account for changes in salaries,
benefits and overhead. The range of increases is from 1.4 to 15.8 percent. As with capacity
fees, the change in revenues from the environmental and development - related rates and
charges would be modest.
Findings need to be made that the District incurs substantial costs to provide environmental
and development - related services and has made a substantial investment in assets that benefit
new users; that there is a strong and reasonable relationship between the actual added
burden /District costs and the proposed fees, rates and charges; and that the proposed fees,
rates and charges are exempt from the California Environmental Quality Act (CEQA).
Legal notices were published and posted, and approximately 180 Letter Reports were sent to
interested customers. An outreach meeting was held on April 27, 2011 at 10:00 a.m. No
members of the public attended. '
Mr. Miyamoto -Mills stated that, in regard to the proposed resolution, placing items on the
County tax roll for collection is the most efficient way to collect money for the District. As the
County operates on the Teeter Plan, the District is paid for all amounts placed on the tax roll,
regardless of when payments are received by the County. As such, the County retains any
penalties, interest or other tax sale monies.
The public hearing was opened and closed without comments.
Member McGill stated that the building community supports the methodology used by the
District in setting fees and is anxious to see an item come before the Board at its June 16, 2011
meeting which would continue the program for deferral of fees for new development, which he
encouraged the Board to support.
It was moved by Member McGill and seconded by Member Williams to adopt Uncodified
Ordinance No. 264 to replace the "Schedule of Environmental and Development - Related Rates
and Charges" adopted pursuant to Ordinance No. 259 in accordance with District Code
Chapter 6.30; to adopt Uncodified Ordinance No. 265 to replace the "Schedule of Capacity
Fees, Rates and Charges" adopted pursuant to Ordinance No. 258 in accordance with District
Code Chapter 6.12; and to adopt Resolution 2011 -014 directing that the Capacity Use
Charges; and Assessments for Contractual Assessment Districts (CADs), Alhambra Valley ,
Assessment Districts (AVADs), and other installment payment programs for Fiscal Year
2011 -12 be placed on the Contra Costa County tax roll for collection. Motion passed by the
following vote of the Board:
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' AYES: Members: McGill, Menesini, Williams, Hockett
NOES: Members: None
ABSENT: Members: Nejedly
None.
5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
6. BIDS AND AWARDS
a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1.729,650 TO
MOUNTAIN CASCADE INC., THE LOWEST RESPONSIVE BIDDER FOR THE
LAFAYETTE /PLEASANT HILL ROAD TRUNK SEWER DISTRICT PROJECT 5994•
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
Member Nejedly arrived during consideration of this item.
It was moved by Member McGill and seconded by Member Menesini to award a
construction contract in the amount of $1,729,650 to Mountain Cascade, Inc., the lowest
responsive bidder for the Lafayette /Pleasant Hill Road Trunk Sewer, District Project
5994; 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. Motion passed by unanimous vote of the Board.
AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $543,000 TO EURO
STYLE MANAGEMENT INC. THE LOWEST RESPONSIVE BIDDER FOR
CONSTRUCTION OF THE TREATMENT PLANT PROTECTIVE COATINGS PHASE 4
DISTRICT PROJECT 7247: 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.
It was moved by Member Menesini and seconded by Member McGill to award a
construction contract in the amount of $543,000 to Euro Style Management, Inc., the
lowest responsive bidder for construction of the Treatment Plant Protective Coatings,
Phase 4, District Project 7247; 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. Motion passed by unanimous
vote of the Board.
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7. REPORTS I
GENERAL MANAGER
1)
2)
Update on Collection System Operations Department Facility District Proiect
8208
Associate Engineer Paul Seitz presented the regular construction progress
update on the Collection System Operations Facility project. He showed photos
of the construction and stated that the ongoing construction focus includes
installing wall insulation and drywall and continuing with the HVAC ducting. The
HVAC unit and building switchgear have been delivered, and the emergency
generator is on site. Work on the roof and building siding continues, and various
yard improvements are being made. Power is expected to be installed in the next
month.
Announcements
The following written announcements were included with the agenda packet:
a) Advertisement of Sewer TV Inspection Project, Phase 2
(DP 5948) '
General Manager James Kelly announced that the advertisement dates of
May 9 and May 16, 2011 which were included in the original
announcement have changed to May 12 and May 19, 2011.
b) Advertisement of the Treatment Plant Piping Renovations, Phase 6 (DP
7288)
c) Advertisement of Public Bidding for Lafayette Sewer Renovations, Phase 7
(DP 5990)
d) Lafayette Sewer Renovations, Phase 7 (DP 5990) - Public Workshop
e) Walnut Creek Sewer Renovation Project, Phase 8 (DP 5992) - Public
Workshop
f) Request for Quotations (RFQ) — Furniture for New CSOD Administration
Facility
g) Service Contract for Cleaning Siphons
h) Service Contract for Crown Spraying '
i) CCCSD Moraga Pumping Station Show Cause Letter and Follow up
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' The following additional written announcements were made at the meeting:
j) Update on Water/Wastewater Operator Training Program for 2011 -12
COUNSEL FOR THE DISTRICT
1) Report on voluntary default of NCCI Inc. contractor for the Treatment Plant
Piping Renovations (Phase 5) District Project 7276
District Counsel Kent Alm referred to his report in the agenda packet. He added
that the District has received and is in the process of reviewing a takeover
agreement from the bonding company, Old Republic Surety Company. The
agreement contains items requiring negotiation and asks that the timeframe for
completion be pushed back.
C. SECRETARY OF THE DISTRICT
Secretary of the District Elaine Boehme announced the receipt, to date, of fifty -five
legally valid protests, eleven other protests and one suggestion resulting from the
Proposition 218 Notice. Ms. Boehme also announced the upcoming May 11, 2011
' Human Resources and May 12, 2011 Household Hazardous Waste Committee
meetings.
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 April 27 -30, 2011 California Association of
Sanitation Agencies (CASA) Spring Conference in Sacramento.
Member McGill also reported that he will be attending the Contra Costa Resource
Conservation District (CCRCD) Board meeting on May 17, 2011. As the
CCRCD's jurisdiction includes the County, he has informed Contra Costa County
liaison, Member Nejedly, of the meeting.
Member Neiedly
' Member Nejedly and President Hockett reported on the May 2, 2011 Budget and
Finance Committee meeting and summarized the Action Summary. The Board
received the report without comments.
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President Hockett t
President Hockett reported on the April 27 -30, 2011 CASA Spring Conference
and Executive Board Meetings in Sacramento.
2) Consider request by Board Member Neiedly to receive report on Board health
benefits
General Manager James Kelly distributed to the Board a memo from the law firm
Trucker Huss. Director of Administration Randall Musgraves stated that staff
requested this legal opinion on benefits from Trucker Huss and has been
conferring with the firm Meyers Nave following expressed concerns regarding
health care premiums and the cost being somewhat excessive when used as
secondary coverage. The District currently offers three programs: Kaiser
Permanente HMO, Health Net HMO and Health Net PPO. Currently, the Board
receives benefits in health care, dental and a $50,000 insurance policy.
Considering the limitations on what may be offered to the Board, Mr. Musgraves
laid out two options. The first was to develop a Health Spending Account (HSA),
which by law must also be provided to employees. Creating the HSA would
require negotiation with the three bargaining units. The second option was to
offer the Board participation in the District's Cafeteria Plan. Currently, the Plan's ,
documents do not provide for this. If the Board chooses to pursue this option,
Trucker Huss and Meyers Nave would need to clarify if the District may pay into it
or if the money must come from the Board's compensation. Legally, the
maximum Plan amount would be $425 per month. The District would offer Board
Members the option of health care coverage or the Cafeteria Plan.
District Counsel Kent Alm stated that, while most local agencies have different
laws as to what kind of compensation its board may receive, medical benefits are
an exception to the total compensation, regardless of how compensation is
calculated.
Member Nejedly recommended that the Board continue pursuing the issue
further. He stated his belief that what the District pays for him and his family is
astronomical. He reported that he has since requested quotes on his health care
coverage from two insurance agencies. He also stated that the District spends a
lot of money on insurance. He explained that he was unaware of the cost of his
health care coverage, and he suspected that his peers probably did not know
either until recently.
Member Nejedly stated that health benefits are an incentive to serve on the
Board, and benefits are needed to encourage qualified people to serve on the I
Board. He stated that the meeting stipend Board Members receive is not
substantial.
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Member Nejedly expressed dissatisfaction with the April 24, 2011 article in the
' Contra Costa Times, entitled "Scores of elected officials receive free health care
on taxpayers' dime."
Member Nejedly requested that the matter be referred to the Human Resources
Committee for further consideration and review of options, noting that if no
alternatives can be developed, he will cancel the health coverage provided to him
by the District.
Member Williams stated that he is interested in the next steps, and the Board
needs to determine how to respond to the letter from the Grand Jury. General
Manager James Kelly noted that the Board's response to the Grand Jury was
requested by July 25, 2011.
Member McGill agreed that the Times article was not a fair characterization.
When he polled insurance costs for his employees, he found them to be in line
with what the District pays for anyone in Member Nejedly's position. Moreover,
an insurance broker from Contra Costa Taxpayers Association confirmed with him
that $32,000- 36,000 a year is the normal cost for a family of four. He supported
referring the matter to the Human Resources Committee to examine options.
President Hockett stated that staff will continue to work on the response to the
' Grand Jury, and the Board will have its input. The item will be referred to the
Human Resources Committee, who will discuss and bring the item back to Board.
3) Announcements
a) Member McGill provided a written report covering Announcements, and
announced that retired General Manager of Mountain View Sanitary District
(MVSD) David Contreras sends his regards and expresses appreciation for
the Board's participation in his retirement dinner.
8. ADMINISTRATIVE
CONSIDER ADOPTING TELECONFERENCING POLICY
Member Williams stated that he found the policy to be restrictive, and he does not
anticipate that it would be used very often.
Member Nejedly stated that he would not vote for adopting the policy because it opens
an avenue which makes it easier for people not to be present at meetings. He described
teleconferencing as disruptive and hard to control, and a cause of extra work for staff.
' Member Menesini stated that, having had experience with such meetings, he finds
nothing difficult about teleconferencing and endorses the fact that there are some times
when teleconferencing into meetings is needed.
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It was moved by Member Menesini and seconded by Member McGill to adopt the I
Teleconferencing Policy. Motion passed by the following vote of the Board:
AYES: Members: McGill, Menesini, Williams, Hockett
NOES: Members: Nejedly
ABSTAIN: Members: None
9. CLOSED SESSION
The Board recessed at 3:18 p.m. to reconvene in closed session in the Caucus Room
regarding Items 9.a. and 9.b. (excluding 536 Ward Street, Martinez) of the following matters:
a. Conference with Legal Counsel regarding existing litigation pursuant to
Government Code Section 54956.9(a):
• Gregory Village Partners L.P. v. Chevron U.S.A., Inc., M.B. Enterprises, and
Central Contra Costa Sanitary District, U.S. District Court, Northern District of
California, Case No. CV 11 1597 JCS.
b. Conference with Legal Counsel - Anticipated Litigation — significant exposure
to litigation pursuant to Government Code Section 54956.9(b) - three potential '
cases:
• 3320 Woodview Court, Lafayette
• 536 Ward Street, Martinez
• Schaeffer claim (Paladin Law Group)
C. Conference with labor negotiators pursuant to Government Code Section
54957.6:
District Negotiators: General Manager James Kelly, Director of Administration
Randall Musgraves, and Secretary of the District Elaine Boehme.
Employee Organizations: (1) Employees' Association, Public Employees'
Union, Local #1; (2) Management Support/Confidential Group (MS /CG);
and (3) Management Group.
The Board recessed at 3:57 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. I
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11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
' None.
None.
12. SUGGESTIONS FOR FUTURE AGENDA ITEMS
13. ADJOURNMENT
There being no further business to come before the Board, President Hockett adjourned the
meeting at 3:59 p.m.
�if ✓ /��% Hockeft
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
C
Elaine, R, BoeFime, CMC
- Secretary. of the Central Contra Costa
: Saritary ; District; County of Contra Costa,
State of,(alifornia
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