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HomeMy WebLinkAboutBOARD MINUTES 09-01-11MINUTES OF THE REGULAR MEETING I OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 1, 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, September 1, 2011. President Hockett called the meeting to order and requested that the Secretary call roll. 1. 'ROLL CALL PRESENT: Members: McGill (arrived at 2:07 p.m.), Menesini, Nejedly, Williams, Hockett ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. ' UULLtI.I IUN JTJ I LIVI Urr-MA I • Justin Stoops • Jason Brown • Brian Stiltner • Joshua Whitman • Chris Tholcke None. Board Members welcomed the new employees. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. ADOPT RESOLUTION NUMBERS 2011 -035 THROUGH 2011 -049 RECOGNIZING 2011 SERVICE AWARD RECIPIENTS ' General Manager James Kelly stated that the proposed resolutions recognize the service of employees and Board Members who have been at the District for five to thirty years, at milestones of every five years. The resolutions will be part of the program for the Service Awards Luncheon in the Multi- Purpose Room on October 21, to which the Book 61- Page 55 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 Board has received invitations. It was moved by Member Menesini and seconded by Member Nejedly to adopt Resolution Numbers 2011 -035 through 2011 -049 recognizing ' 2011 Service Award recipients. Motion passed by the following vote of the Board: AYES: Members: Menesini, Nejedly, Williams, Hockett NOES: Members: None ABSENT: Members: McGill b. PRESENT THE NATIONAL ASSOCIATION OF CLEAN WATER AGENCIES ( NACWA) PLATINUM 13 PEAK PERFORMANCE AWARD Plant Operations Division Manager Randy Grieb presented the Board with the NACWA Platinum 13 Peak Performance Award, in recognition of thirteen years of complete and consistent NPDES permit compliance. In 2010, the Plant processed 14.8 billion gallons of water, produced 3,900 tons of ash and performed 36,000 laboratory analyses with zero permit violations. The District was one of only thirty -two recipients of the award in the country. Member McGill arrived during this presentation. 4. CONSENT CALENDAR It was moved by Member Williams and seconded by Member Menesini to adopt the Consent I Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve minutes of the following Board meetings: 1) July 21, 2011; and 2) August 4, 2011. b. Approve expenditures dated September 1, 2011. Reviewed by Budget and Finance Committee. C. Adopt Resolution No. 2011 -050 establishing the Sewer Construction Fund appropriations limit in the amount of $80,226,515 for Fiscal Year 2011 -12, in accordance with Article XIII B of the California Constitution and select the change in the California per capita personal income percentage for use in computing the appropriations limit. Reviewed by Budget and Finance Committee. d. Review and approve the Statement of Investment Policy for District assets and the Investment Guidelines Document for the GASB 45 Trust. Reviewed by Budget and Finance Committee. e. Accept contract work for Wet Weather Bypass Improvement Project, District Project 7241, completed by Siteworks Construction, Inc., and authorize filing of the Notice of I Completion. Book 61- Page 56 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 f. Accept contract work for Diablo Sewer Renovation (Phase 1), District Project 5953, ' completed by California Trenchless, Inc., and authorize filing of the Notice of Completion. g. Accept contract work for the Perimeter Fencing Project, District Project 7282, completed by Golden Bay Fence Plus Iron Works, Inc., and authorize filing of the Notice of Completion. h. Accept contract work for the Solids Handling Improvement Project, District Project 7260, completed by Manito Construction, Inc., and authorize filing of the Notice of Completion. i. Accept contract work for the Treatment Plant Piping Renovations (Phase 5), District Project 7276, completed by Trinet Construction, Inc., and authorize filing of the Notice of Completion. j. Approve initiating the formation of a Contractual Assessment District (CAD) for installation of sewer improvements to serve properties on Smith Road in Alamo by adopting two resolutions as follows: Resolution of Intention No. 2011 -051 to create the Smith Road CAD No. 2011 -1 for the purpose of installing sewer improvements, and Resolution No. 2011 -052 approving the boundary map for said CAD. k. Approve initiating the formation of a CAD for installation of sewer improvements to serve ' properties in the Harper Lane area of Alamo by adopting two resolutions as follows: Resolution of Intention No. 2011 -053 to create the Harper Lane CAD No. 2011 -2 for the purpose of installing sewer improvements, and Resolution No. 2011 -054 approving the boundary map for said CAD. Set October 6, 2011 at 2:00 p.m. as the date and time for public hearing to consider establishing reimbursement fees for the Sunnybrook Road CAD No. 2010 -1 in Alamo, District Project 6476. M. Deny claim for damages submitted by Connie Easterly. Reviewed by Budget and Finance Committee. n. Adopt changes to job classification of Graphic Technician III position and eliminate Graphic Technician I and II positions. 5. PUBLIC HEARINGS a. CONDUCT PUBLIC HEARING TO CONSIDER ADOPTING UNCODIFIED ORDINANCE NO. 268 ESTABLISHING THE "CCCSD STANDARD SPECIFICATIONS FOR DESIGN AND CONSTRUCTION, 2011 EDITION" AS THE DISTRICT'S STANDARD ' SPECIFICATIONS IN ACCORDANCE WITH DISTRICT CODE SECTION 9.08.010 Principal Engineer Jarred Miyamoto -Mills stated that, since the District's Standard Specifications for Design and Construction were updated in 2010, staff has collected Book 61- Page 57 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 errata, reviewed customer requests for clarification and revised the document to include corrections and incorporate the latest information on materials, methods, industry ' practices and technology. The updated document is ready for publication, once the Board of Directors establishes the standard specifications by ordinance after conducting a public hearing, by order of Section 9.08.010 of the District Code. The public hearing was opened and closed without comment. It was moved by Member Nejedly and seconded by Member McGill to adopt uncodified Ordinance No. 268 establishing the "CCCSD Standard Specifications for Design and Construction, 2011 Edition" as the District's standard specifications in accordance with District Code Section 9.08.010. Motion passed by unanimous vote of the Board. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Due to its subject matter, Items 13.a. and 14. were considered out of order, in concurrence with the related Item 7.a. 7. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS DIRECT STAFF TO SECURE THE SERVICES OF AN ARBITRATOR IN , ACCORDANCE WITH THE DISTRICT'S MEMORANDUM OF UNDERSTANDING (MOU). CONTINUED FROM AUGUST 4 2011 This item was continued from the August 4, 2011 meeting. President of Local One Public Employees Union David Rolley introduced Local One's newest Business Agent, Diane Dally. He requested that the Board instruct staff to issue a more lenient discipline for Maintenance Crew Leader Jose Plascencia and stated his belief that the issue could be settled without arbitration, thereby reducing costs for all parties involved. The Board recessed to hold Closed Session pursuant to Item 13.a. and reconvened in open session to consider Item 14. It was moved by Member Williams and seconded by President Hockett to direct staff to secure the services of an arbitrator in accordance with the District's MOU. Motion passed by the following vote of the Board: AYES: Members: Menesini, Williams, Hockett NOES: Members: McGill, Nejedly ABSENT: Members: None ' Member Williams stated that he moved the item because, when it was established, the procedure was agreed by both the Union and the District to be fair and equitable. He Book 61- Page 58 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 noted that each employee is entitled to go through that process, and, despite any ' potential cost savings, making one -time exceptions may break down that process. He suggested renegotiating the steps for the next MOU if needed, but stated that, as it stands, the procedure is in place and it ought to be followed. 8. REPORTS GENERAL MANAGER 1) Update on Collection System Operations Department Facility, District Project 8208 Senior Engineer Alex Rozul 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 elevator installation, drywall finish and painting, floor polishing and various yard improvements. In response to a question from Member Nejedly, Mr. Rozul stated that construction is fifty days behind, due in part to the poor performance by the listed drywall subcontractor, and the end date on the contractor's current schedule is November 16, 2011. Member Williams stated that he did not support being green simply for the purpose of being green. He spoke in favor of a more holistic approach to being environmentally friendly, not only with regard to projects at the District, but also across society. 2) Update on Contra Costa County Employees' Retirement Association (CCCERA) General Manager James Kelly reported that staff has provided the Board with copies of the last two CCCERA Board meeting agendas and correspondence, including the Actuarial Valuation report and the impact on the District's unfunded liability. Director of Administration Randy Musgraves provided a written summary and stated that, due to a misunderstanding of CCCERA's calculation methods, depooling is costing the District $31.5 million, not the $20 million previously reported. Unfunded liability has also increased, from $35 million to $70 million, most of which is investment loss. In addition, he anticipated another $18 to $20 million increase over the next several years, which is the last increase projected for the investment loss. This is not due to CCCERA's calculations, but to the five - year smoothing that will then drive the District's unfunded liabilities up to $120 million. Mr. Musgraves assured the Board that the CCCERA Board understands the District's concerns and did not approve the rate increase so the District's actuary, John Bartel, could facilitate District staffs review of the numbers. The CCCERA Board expects to consider the matter at their October 12 meeting. In the meantime, District and CCCERA staff and actuaries will inspect all assumptions Book 61- Page 59 3) a 5) CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 and calculations. The results of this study will be reported to the Board at the end of September. Not all of the District's concerns were addressed by CCCERA, so staff will continue monitoring their progress as they take action on the requested items. Member McGill stated his concern with the unfunded liabilities and 7.75 percent interest rate charged by CCCERA, which he stated was a poor use of money. He requested information from staff on how to lower the District's interest costs. Update on pension reform legislation General Manager James Kelly reported that the outcome of both Senate Bill (SB) 27 and Assembly Bill (AB) 340 would be known by September 9, 2011, the last day of the Legislative session. Discussion of expected outcomes for November 3 2011 Board Strategic Planning Workshop General Manager James Kelly reported staffs vision for the events leading up to the workshop. At the September 15 Board meeting, a General Manager Report will discuss strategic planning background, past efforts and current mission, vision, values and goals. It will also provide suggestions recommended by staff for Board policy direction and the results of the managers' workshop held last ' week. On September 20, each Board Member is scheduled to meet with facilitator Marilyn Manning to provide input. On October 6, the District's benefits consultant, Edward Kreisberg, Esq., will meet with the Board to begin discussions of the labor negotiations process. On November 3, the Board will hold its Strategic Planning Workshop. Announcements The following written announcements were included with the agenda packet: a) California Special Districts Association Election Results b) North American Hazardous Materials Management Association National Conference Attendance by Staff in Portland, Oregon — September 25 -29, 2011 c) Retirement of Plant Operations Division Manager d) CCCSD Awarded $1,030,000 State Proposition 84 Grant for Concord Recycled Water Landscape Project e) Whole Effluent Toxicity Policy f) Collection System Projects Meet All Interim Milestones Book 61- Page 60 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 ' g) Human Resources Hosts "Tools and Technology for Healthy Living Brown Bag Seminar" — September 14, 2011 The following additional written announcements were made at the meeting: h) SB 27 and AB 340 Pension Related Bill Updates Human Resources Manager Appointment General Manager James Kelly announced that, following interviews conducted by Director of Administration Randy Musgraves, Deputy General Manager /Director of Engineering Ann Farrell and himself, staff will be recommending the appointment of Provisional Human Resources Manager Chris Ko by way of a Position Paper on September 15. b. COUNSEL FOR THE DISTRICT No reports. C. SECRETARY OF THE DISTRICT ' No reports. 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 August 4, 2011 Contra Costa County Mayors' Conference hosted by the City of Pleasant Hill, whose program explored the disconnect between the efforts of the Conference and California cities in general and the actions of the current legislators. Member McGill also reported on the August 10 -13, 2011 CASA Annual Conference in San Diego and the August 19, 2011 Contra Costa Council luncheon with featured speaker Assemblymember Nancy Skinner in Lafayette. Member McGill and President Hockett reported on the August 30, 2011 Capital Projects Committee meeting and summarized the Action Summary. The Board concurred with the Committee's recommendation to increase General Manager authority in a number of areas, to be brought back to the Board for approval. Book 61- Page 61 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 Member McGill reported that he will be attending the California Workforce Association Annual Conference on September 7 and 8 as a panelist speaker for job creation, particularly in the area of water. Member Menesini Member Menesini and Member Williams reported on the August 23, 2011 Outreach Committee meeting. The Board concurred with the Committee's recommendation to post Committee agendas and labor agreements on the website. Member McGill recommended that any documents available to the public should be posted to the website, or at least that staffs contact information be posted should any member of the public need more information. Staff will monitor the number of hits received and return the matter to the Board if appropriate. Member Ngiedly Member Nejedly and Member McGill reported on the August 18, 2011 Recycled Water Committee meeting and summarized the Action Summary. The Board received the report without comments. Member Nejedly and President Hockett reported on the August 29, 2011 — Budget and Finance Committee meeting and summarized the Action Summary. ' The Board received the report without comments. President Hockett President Hockett reported on the August 10 -13, 2011 CASA Annual Conference and Executive Board Meetings in San Diego. She thanked General Manager James Kelly for his service as Program Committee Chair for the past two years and presented a pin to Member Nejedly in honor of his father, who was CASA's first president. Member McGill thanked President Hockett for her service as President of CASA. 2) Announcements a) Member McGill provided a written report covering Announcements. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO AN EXISTING AGREEMENT WITH COMPLETE PROJECT SOLUTIONS INC. TO INCREASE THE COST CEILING FROM $60,000 TO $280,000 FOR PROFESSIONAL ENGINEERING SERVICES FOR DESIGN OF SEISMIC UPGRADES FOR THE PUMP AND BLOWER BUILDING, DISTRICT PROJECT 7291 Book 61- Page 62 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 This matter was reviewed by the Capital Projects Committee at its August 30, 2011 meeting and recommended for Board authorization. It was moved by Member McGill and seconded by Member Williams to authorize the General Manager to execute an amendment to an existing agreement with Complete Project Solutions, Inc. to increase the cost ceiling from $60,000 to $280,000 for professional engineering services for design of seismic upgrades for the Pump and Blower Building, District Project 7291. Motion passed by the following vote of the Board: AYES: Members: McGill, Menesini, Williams, Hockett NOES: Members: Nejedly ABSENT: Members: None AUTHORIZE EXECUTION OF AN AGREEMENT WITH THE ORINDA UNION SCHOOL DISTRICT TO CONTINUE THE DISTRICT'S OPERATIONS AND MAINTENANCE . SERVICES FOR THE EXISTING WAGNER RANCH PUMPING STATION General Manager James Kelly stated that the District has provided operation and maintenance services for the Orinda Union School District (OUSD) pumping station under an informal letter agreement. Staff and District Counsel have prepared the formal written agreement with OUSD to clarify and memorialize terms and conditions for continuation of the service. ' It was moved by Member McGill and seconded by Member Menesini to authorize the execution of an agreement with the OUSD to continue the District's operations and maintenance services for the existing Wagner Ranch Pumping Station. Motion passed by unanimous vote of the Board. 10. BUDGET AND FINANCE RECEIVE ADJUSTED PERIOD 13 OPERATIONS AND MAINTENANCE (O &M) JUNE 2011 YEAR -END FINANCIAL STATEMENTS AND INVESTMENT REPORTS This matter was reviewed by the Capital Projects Committee at its August 30, 2011 meeting. Controller Debbie Ratcliff provided a review of the unaudited numbers, which have the potential for audit adjustments. She stated that revenues for Period 13 remained similar to those of Period 12. Two major transactions booked in the last thirty days were offset by a $1.1 million write -off from the un- depreciated asset of demolition of the Collection System Operations (CSO) Facility. Total revenue was $60,180,000, which was $2,146,000 less than budgeted, and total expenses were $62,966,000, which were $4,849,000 less than budgeted. With regard to the write -off from the CSO Facility, Member McGill asked to be apprised of such information in the future. Book 61- Page 63 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 RECEIVE CAPITAL IMPROVEMENT BUDGET (CIB) YEAR -END REPORT This matter was reviewed by the Capital Projects Committee at its August 30, 2011 meeting. Deputy General Manager /Director of Engineering Ann Farrell stated that the Capital Program came under its $28.5 million budget at $28 million, but revenues of $16.4 million were significantly lower than the budgeted $19.7 million. While $8.8 million was expected to be drawn down from the Sewer Construction Fund (SCF), in actuality, $11.6 million will be drawn down, resulting in a June 30, 2011 SCF balance of $54 million. Ms. Farrell added that, while 1,000 connections were budgeted, only 600 connections were made, bringing Facility Capacity /Pumped Zone Fees revenue to $3,998,000. She also discussed the Treatment Plant, Collection System, General Improvements and Recycled Water Programs' major projects and variances. C. APPROVE THE REVISED FISCAL YEAR (FY) 2011 -12 CIB FUNDING None. TOTAL FY 2011 -12 AUTHORIZATIONS This matter was reviewed by the Capital Projects Committee at its August 30, 2011 meeting and recommended for Board approval. It was moved by Member McGill and seconded by Member Nejedly to approve the ' revised Fiscal Year (FY) 2011 -12 CIB funding authorization table (Table 1) with actual rather than estimated authorized but unspent funds allocated to ongoing projects and total FY 2011 -12 authorizations. Motion passed by unanimous vote of the Board. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 12. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Nejedly suggested discontinuing the practice of holding only one Board meeting in August, citing the size of the agenda packet and amount of information that accumulates in the time between the Board meeting in August and the first one in September. The proposed 2012 calendar will be brought to the Board for consideration in October. 13. CLOSED SESSION This item was considered in concurrence with Item 7.a. Book 61- Page 64 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 1, 2011 The Board recessed at 2:18 p.m, to reconvene in closed session in the Caucus Room regarding the following matter: a. Closed Session pursuant to Section 54957 of the Government Code — Public Employee Discipline. The Board recessed at 2:37 p.m. to reconvene in the Board Room in open session. 14. REPORT OUT OF CLOSED SESSION District Labor Counsel Daniel Clinton reported that no action was taken in closed session. 15. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 3:50 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, CMC Sec etan ofAhE District ,Central Contra-Costa Sanitary District County of Contra Costa, State of California Book 61- Page 65