Loading...
HomeMy WebLinkAboutBOARD MINUTES 06-02-11MINUTES OF THE REGULAR MEETING ' OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 2, 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, June 2, 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 None. 3. AWARDS AND COMMENDATION (IPMA -HR) Provisional Human Resources Manager Christopher Ko presented the Board with the Western Regional Award for Excellence from the IPMA -HR. In April, the Board was given the Northern California Chapter of the IPMA -HR Agency of the Year Award for Excellence. The District's nomination was then forwarded to the Western Region, which consists of sixteen chapters spanning several states. With the award, the District was commended as a leader in automation and innovation, specifically for its leave management system that works in conjunction with safety and risk management procedures for on- the -job injuries and worker's compensation claims. Mr. Ko stated that the District will now be eligible for the national award, which will be presented at the ' IPMA -HR International Training Conference and Expo in September. Book 61— Page 1 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 4. CONSENT CALENDAR It was moved by Member McGill and seconded by Member Menesini to adopt the Consent Calendar as recommended. Motion passed by the following vote of the Board: AYES: Members: McGill, Menesini, Nejedly, Williams (Items 4.a.2) — 4.g. only), Hockett NOES: Members: None ABSTAIN: Members: Williams (Item 4.a.1) only) Member Williams noted that he abstained from Item 4.a.1) on the basis that he was not present at the April 21, 2011 Board meeting. a. Approve minutes of the following Board meetings: 1) April 21, 2011; and 2) May 5, 2011. Approve expenditures dated June 2, 2011. Reviewed by Budget and Finance Committee. C. Receive April 2011 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. Deny claim for damages submitted by Kathleen Daly. Reviewed by Budget and Finance Committee. e. Authorize the General Manager to renew insurance coverage for Fiscal Year 2011 -12 for excess liability, pollution (Household Hazardous Waste) liability, employment practices liability, property coverage, and Workers' Compensation coverage. Reviewed by Budget and Finance Committee. Authorize the General Manager to execute an amendment to increase the cost ceiling of an existing consulting services agreement with DKF Solutions from $23,000 to $75,000 to provide safety program consulting services. Reviewed by Budget and Finance Committee. g. Set July 7, 2011 as the date and time for a public hearing to approve the final assessments for Sunnybrook Road Contractual Assessment District (CAD) No. 2010 -1, and consider placing the 2011 -12 assessments on the Contra Costa County tax roll for collection. Reviewed by Budget and Finance Committee. Book 61 — Page 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 5. PUBLIC HEARINGS ' a. CONDUCT A PUBLIC HEARING ON THE FOLLOWING MATTER: 1) CONSIDER ADOPTING THE FISCAL YEAR 2011 -12 CAPITAL IMPROVEMENT BUDGET (CIB) FOR INCLUSION IN THE FISCAL YEAR 2011 -12 DISTRICT BUDGET: APPROVING THE 2011 TEN -YEAR CAPITAL IMPROVEMENT PLAN (CIP); AND MAKING THE FINDING THAT THESE DOCUMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The staff presentation was made by Director of Engineering Ann Farrell, who reviewed the information presented to the Board at its special meeting held April 14, 2011 on the draft CIB /CIP. Under Public Comments, Mr. Norman Ward, owner of a 24 -unit apartment house in Lafayette, stated that he pays the same per unit per year for sewer service to his one - bathroom apartments as other homeowners with more bathrooms pay. He noted that basing rates on the number of toilets would seem more fair and equitable and stated that, in regard to the proposed Sewer Service Charge rate increase, twenty percent over two years is out of line. Member Nejedly commented that Mr. Ward's point regarding the method of rate ' charging was of interest and should be examined by staff. Member Williams added that rates could be based on the number of toilets, flow or square footage and questioned what the most common practice in the Bay Area is. District Counsel Kent Alm replied that some jurisdictions charge thirty to forty percent less for apartment units, and the justification for this sometimes depends on the demographics. However, charging a standard fee for all residential units is probably more common than any other single means of measuring. In regard to the budget, Member Nejedly stated that the District has been running at a deficit for three to four years and has paid dearly for revenues lost during the two past years the Board did not institute a rate increase. Member Williams stated the need to maintain, upgrade and rehabilitate the District's equipment, meet regulatory requirements, meet permit limits and maintain the collection system to keep sanitary sewer overflows down. He noted that the District strives to be frugal but needs to maintain its assets. It was moved by Member McGill and seconded by Member Menesini to adopt the Fiscal Year 2011 -12 Capital Improvement Budget for inclusion in the Fiscal Year 2011 -12 District Budget; approve the 2011 Ten -Year Capital Improvement Plan ' and find that the documents are exempt from CEQA. Member Williams made a substitute motion to adopt the Fiscal Year 2011 -12 Capital Improvement Budget absent the Recycled Water Program. In doing so, Book 61 — Page 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 Member Williams stated that he was not against recycling water, but against double charging some of the District's ratepayers who already pay for recycled ' water through their water purveyor, East Bay Municipal Utility District (EBMUD). Motion failed for lack of a second. The motion to adopt the Fiscal Year 2011 -12 Capital Improvement Budget for inclusion in the Fiscal Year 2011 -12 District Budget; approve the 2011 Ten -Year Capital Improvement Plan and find that the documents are exempt from CEQA passed by unanimous vote of the Board. Member Williams supported the item but voiced his concern about funding recycled water when it is the responsibility of the water supply agency. b. CONDUCT A PUBLIC HEARING ON THE FOLLOWING MATTERS: These matters were reviewed by the Budget and Finance Committee. 1) CONSIDER ADOPTING THE FOLLOWING BUDGETS FOR FISCAL YEAR 2011 -12: • OPERATIONS AND MAINTENANCE BUDGET • DEBT SERVICE FUND BUDGET • SELF - INSURANCE FUND BUDGET , Controller Debbie Ratcliff stated that, as of 1:00 p.m. on June 2, 2011, a total of 101 legally -valid written protests out of 105,200 mailed notices were received. This represents less than a 0.1% response to the Proposition 218 notice. The total responses were categorized as follows: Opposition 128 Support 1 Seniors (Request Senior Rate) 1 Questions 10 Parcels on Septic 2 Otherlssues 7 Total 149 Ms. Wendy Lack of Pleasant Hill, who also serves on the Board and Executive Committee of the Contra Costa Taxpayers Association, stated her opinion that, while the District cannot control declining property values and construction activity, it can reduce its operating costs. She claimed that the District cannot afford to continue doing business as usual and must perform substantial cost - cutting to reduce key cost drivers, citing pension and benefits, before asking ratepayers to pay more for the same service. She stated that freezing positions is ' not sufficient; the proposed rate increase will not solve financial problems; and, left unchecked, the District's operating expenses will continue to escalate. She submitted a letter suggesting areas in which the Board might consider cutting Book 61 — Page 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 costs. In conclusion, she urged the Board to defer the rate increase until changes ' have been made to bring operating costs in line with revenues. Ms. Jan Warren of Walnut Creek expressed her concerns about hidden ongoing pension and medical costs. She requested more disclosure going forward in terms of sharing information about pension and medical cost increases. District Counsel Kent Alm noted that the motion needs to include the finding that there was not a majority protest as indicated by the 101 legally -valid letters received in opposition. It was moved by Member Nejedly and seconded by Member Williams to approve and adopt the Fiscal Year 2011 -12 Operations and Maintenance Budget, Debt Service Fund Budget and Self- Insurance Fund Budget and to find that there was not a majority protest as indicated by the receipt of only 101 legally -valid letters in opposition. Motion passed by unanimous vote of the Board. 2) CONSIDER ADOPTING UNCODIFIED ORDINANCE NO 266 ESTABLISHING AN INCREASE IN THE ANNUAL SEWER SERVICE CHARGE OF $30 FOR FISCAL YEAR 2011 -12, EFFECTIVE JULY 1 2011 FOR A TOTAL OF $341 PER RESIDENTIAL UNIT EQUIVALENT; AND AN ADDITIONAL $30 INCREASE FOR FISCAL YEAR 2012 -13 EFFECTIVE JULY 1 2012 FOR A TOTAL OF ' $371 PER RESIDENTIAL UNIT EQUIVALENT It was moved by Member Nejedly and seconded by Member McGill to adopt uncodified Ordinance No. 266 increasing the annual Sewer Service Charge by $30 for Fiscal Year 2011 -12, effective July 1, 2011, for a total of $341 per Residential Unit Equivalent; and an additional $30 increase for Fiscal Year 2012- 13, effective July 1, 2012, for a total of $371 per Residential Unit Equivalent. Motion passed by unanimous vote of the Board. 3) CONSIDER ADOPTING RESOLUTION 2011 -017 DIRECTING THAT THE SEWER SERVICE CHARGES FOR FISCAL YEARS 2011 -12 AND 2012 -13 BE PLACED ON THE CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION Controller Debbie Ratcliff noted that placing charges on the tax roll is the most cost - effective method of collection, and staff recommends continuing with this approach. It was moved by Member McGill and seconded by Member Williams to adopt Resolution No. 2011 -017 directing that the Sewer Service Charges for Fiscal Years 2011 -12 and 2012 -13 be placed on the Contra Costa County tax roll for collection. Motion passed by unanimous vote of the Board. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. Book 61— Page 5 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 7. BIDS AND AWARDS ' a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $110,605 TO GOLDEN BAY FENCE PLUS IRON WORKS THE LOWEST RESPONSIVE BIDDER FOR THE PERIMETER FENCING PROJECT DISTRICT PROJECT 7282; 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 this contract will replace 5,200 feet of chain - link fence on the east side of the plant. It was moved by Member McGill and seconded by Member Menesini to award a construction contract in the amount of $110,605 to Golden Bay Fence Plus Iron Works, the lowest responsive bidder for the Perimeter Fencing Project, District Project 7282; 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. b. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $672,285 TO ROTO ROOTER PLUMBING SERVICES, THE LOWEST RESPONSIVE BIDDER FOR THE SEWER TV INSPECTION PROJECT (PHASE 2), DISTRICT PROJECT 5948; FIND ' THAT THE PROJECT IS EXEMPT FROM CEQA; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS General Manager James Kelly stated that this contract will video inspect 750,000 linear feet of sewer lines in Lafayette and Orinda. It was moved by Member McGill and seconded by Member Nejedly to award a construction contract in the amount of $672,285 to Roto Rooter Plumbing Services, the lowest responsive bidder for the Sewer TV Inspection Project (Phase 2), District Project 5948; find that the project is exempt from CEQA; and authorize the General Manager to execute the contract documents subject to submittal requirements. Motion passed by unanimous vote of the Board. 8. REPORTS GENERAL MANAGER 1) Update on Collection System Operations Facility, District Protect 8208 Associate Engineer Paul Seitz presented the regular construction progress ' update on the Collection System Operations (CSO) Facility project. He showed photos of the construction and reported that the ongoing construction focus includes installation of wall insulation; drywall taping and finishing; continuation of Book 61— Page 6 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 mechanical, electrical and plumbing work; building siding and various yard ' improvements. The facility is on schedule with PG &E for power installation on June 15. 2) Update on pension reform legislation General Manager James Kelly referred to the memo in the Board agenda packet and stated that Director of Administration Randall Musgraves is available for questions. 3) Announcements The following written announcements were included with the agenda packet: a) District Receives the National Association of Clean Water Agencies (NACWA) 2010 Peak Performance Award b) Human Resources Committee Board Review Recommendations from the May 11, 2011 Meeting c) Staff Travel to Streater, Illinois from June 20 — 22, 2011 to Inspect New Vactor Jetter Equipment d) Bay Area Recycled Water Coalition Amended Agreement e) 2011 Annual Recycled Water Rate Increase f) Report of Waste Discharge (ROWD) to the San Francisco Regional Water Quality Control Board (RWQCB) g) United States Energy Information Administration (EIA) Annual Report h) Invitation to Join Bay Area Biosolids to Energy Coalition (BAB2E) i) Primary Effluent Control Valve Actuator Failure j) Field Demonstration Trial of T3 Motion's Electric Stand -up Vehicle The following additional written announcements were made at the meeting: k) Deferral of Amendment To Agreement With URS for Professional Engineering Services for the Alternative Energy and Greenhouse Gas Reduction Plan ' I) District - Concord Recycled Water Project State of California Proposition 84 Grant Funding Book 61 — Page 7 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced the closed sessions as indicated on the agenda. ' 1) SETTLEMENT OF CLAIM REGARDING SEWER OVERFLOW AT 3320 WOODVIEW COURT. LAFAYETTE (CONTINUED FROM MAY 19 2011) District Counsel Kent Alm reported that this claim was addressed in closed session and settled, with the District essentially paying the costs of remediating the damage to the house. The payment to the claimant, Ms. Cheryl Cohen, totaled approximately $135,000 and covered reconstruction and all other costs associated with it. Copies of the settlement agreement are available as a public record. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming Human Resources Committee meeting on June 9, 2011. 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 Menesini Member Menesini and Member Williams reported on the May 25, 2011 Outreach Committee meeting and summarized the Action Summary. The Board received the report without comments. Member Neiedly Member Nejedly and President Hockett reported on the May 31, 2011 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comments. Member Williams Member Williams reported that he was unable to attend the previous Board meeting because of his participation in a meeting of the Organization for International Standards (ISO), which was scheduled a year ago. Specifically, he served on a committee to develop standards for improving asset management for ' water and wastewater utilities. Fully funded by the National Association of Clean Water Agencies (NACWA), he represented the United States, one of sixty participating countries, as a wastewater technical expert. Book 61 — Page 8 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 2) Announcements a) Member McGill provided a written report covering Announcements. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $350,000, TO INCREASE THE COST CEILING FROM $235.000 TO $585,000, WITH URS FOR THE ALTERNATIVE ENERGY AND GREENHOUSE GAS REDUCTION PLAN DISTRICT PROJECT 7256 None. None. The Budget and Finance Committee reviewed this matter at its May 31, 2011 meeting, where Chair Nejedly expressed concern about spending money to conduct research for a treatment plant process that will not be funded in the Capital Improvement Plan (CIP) for several years, if at all. Director of Engineering Ann Farrell provided the Board with a copy of a presentation detailing staff's recommendation, per General Manager Announcement 8.a.3)k), that the work be deferred and the item be pulled from the agenda. 10. TREATMENT PLANT AUTHORIZE THE GENERAL MANAGER TO EXECUTE A COGENERATION SYSTEM MAINTENANCE CONTRACT WITH WOOD GROUP GTS (GAS TURBINE SERVICESI FOR $1,250,000 FOR A TERM OF FIVE YEARS The Budget and Finance Committee reviewed this matter at its May 31, 2011 meeting and recommended Board approval. It was moved by Member Nejedly and seconded by Member Williams to authorize the General Manager to execute a cogeneration system maintenance contract with Wood Group GTS (Gas Turbine Services) for $1,250,000 for a term of five years. Motion passed by unanimous vote of the Board. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 12. SUGGESTIONS FOR FUTURE AGENDA ITEMS Book 61— Page 9 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 2, 2011 13. CLOSED SESSION The Board recessed at 3:13 p.m. to reconvene in closed session in the Caucus Room regarding the following matters: 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. Conference with Legal Counsel - Anticipated Litigation — significant exposure to litigation pursuant to Government Code Section 54956.9(b): • Schaeffer claim (Paladin Law Group). C. Conference with Legal Counsel - Anticipated Litigation - initiation of litigation pursuant to Government Code Section 54956.9(c): • Chevron ad valorem tax reimbursement issue. The Board recessed at 3:50 p.m. to reconvene in the Board Room in open session. 14. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that no action was taken in closed session on Items 3.a. or 3.b. However, with regard to 3.c., the Board authorized joining a piece of litigation to contest the County's distribution methodology and join with other public agencies that are jointly bringing such a suit. 15. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 3:54 p.m. arbara D. Hockeft President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: -Z .o Elaine'R. B66hme -CMC Secretary of the District 'Central'Contra.Costa Sanitary District County:of;Contra Costa, State of California Book 61 — Page 10 1