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HomeMy WebLinkAboutBOARD MINUTES 10-20-11 MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 20, 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, October 20, 2011. President Hockett called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: McGill, Nejedly, Williams, Hockett ABSENT: Members: Menesini a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. b. INTRODUCTIONS • Mike Klubben, Construction Equipment Operator, Central System Operations • Dulce Petagara, Administrative Assistant The Board Members welcomed the new employees. 2. PUBLIC COMMENTS James R. Hunt, President of Walden District Improvement Association, in reference to his letter dated October 18, 2011 to Member Nejedly (a copy of which was distributed just prior to the meeting), requested that the Board consider adding a future agenda item to discuss trees growing on the District easement along the Iron Horse Trail. 3. CONSENT CALENDAR It was moved by Member McGill and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by the following vote of the Board: AYES: Members: McGill, Nejedly, Williams, Hockett NOES: Members: None ABSENT: Members: Menesini a. Approve minutes of September 15, 2011 Board meeting. Book 61 — Page 81 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 b. Approve expenditures dated October 20, 2011. Reviewed by Budget and Finance Committee. C. Accept the contract work for the SCB Mechanical Room Improvements Project, District Project 7277, completed by R-E Corporation, and authorize filing of the Notice of Completion. d. Adopt Resolution 2011-059 suspending application of the "Demand Charge" from the Schedule of Sewer Service Charges adopted under Ordinance No. 266, in accordance with District Code Section 1.24.020. Reviewed by Budget and Finance Committee. e. Authorize the General Manager to execute ten-year license, with automatic extensions unless either party cancels, with Pacheco Commercial Properties for District-owned strip of land at Concord Commerce Center (APN 125-250-002-8). Approval recommended by Real Estate Committee. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. BIDS AND AWARDS a. AWARD A CONTRACT IN THE AMOUNT OF $929,000 TO PANTANO EXCAVATING, INC. THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE PRIMARY STRUCTURES DEMOLITION PROJECT DISTRICT PROJECT 7255• FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)• AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE (1) THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS AND (2) AN AMENDMENT IN THE AMOUNT OF $30,000 TO AN EXISTING PROFESSIONAL SERVICES AGREEMENT WITH COMPLETE PROJECT SOLUTIONS INC. INCREASING THE COST CEILING TO $75,000 FOR DESIGN AND CONSTRUCTION SUPPORT SERVICES RELATED TO SAID PROJECT General Manager James Kelly stated that on September 27, 2011 the District received six sealed bids for construction of the Primary Structures Demolition Project, District Project 7255. The project will demolish five abandoned primary tanks, as well as the lime storage building and lime silos. The project will also remove associated equipment and piping within the tunnels below. The Engineer's estimate was $1.4 million. Staff reviewed the bids and recommended awarding the project to the lowest responsive and responsible bidder, Pantano Excavating, Inc. for $929,000. General Manager James Kelly also stated that in 2008, staff entered into a professional engineering services agreement with Complete Project Solutions, Book 61 — Page 82 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 Inc. (CPS) to prepare design drawings and specifications to demolish the abandoned primary tanks. CPS has performed satisfactorily during the design phase of the project and staff recommends retaining CPS to provide construction support services during the demolition/construction phase of the project, as more fully outlined in the agenda packet. This would necessitate amending the original agreement with CPS by $30,000, increasing the cost ceiling from $45,000 to $75,000. It was moved by Member McGill and seconded by Member Williams to find that the project is exempt from the California Environmental Quality Act (CEQA); award a construction contract to Pantano Excavating, Inc.; and authorize the General Manager to execute (1) the contract documents as recommended and (2) an amendment in the amount of$30,000 to an existing professional services agreement with Complete Project Solutions, Inc., increasing the cost ceiling to $75,000 for design and construction support services related to said project. Motion passed by the following vote of the Board: AYES: Members: McGill, Nejedly, Williams, Hockett NOES: Members: None ABSENT: Members: Menesini 6. REPORTS a. GENERAL MANAGER 1) Review status of District Annexation 168C —Alhambra Valley outside urban limit line annexation General Manager James Kelly stated that the draft environmental impact report (EIR) for proposed District Annexation 168C, which includes nine properties in the Alhambra Valley outside of the County's Urban Limit Line, was circulated for public review in August and September 2010. During the review period, a community meeting was held to discuss the draft EIR, and several comment letters were received from concerned neighbors and agencies. Staff elected to spend the time needed to understand and address these comments before preparing the final EIR and holding a public hearing. Over the past year, significant new information has emerged. He called on Engineering Assistant Russ Leavitt to explain. Mr. Leavitt presented an overview of the proposed annexation, including a map of the area, and outlined the concerns raised in the comment letters received by the District, including a request by one owner of an undeveloped property to be excluded from the annexation. Given the potential for litigation if all nine properties are included in the annexation, he said staff was seeking direction from the Board as to whether the ` project description for the annexation should be modified to exclude one or more properties from the proposal. Book 61 — Page 83 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 Member Nejedly said the District's job is to provide sewer service and a clean environment by keeping properties off septic tanks, not decide which properties are to be developed. Member McGill agreed with this view and said he would recommend proceeding with all properties as planned; if a change becomes necessary, it can be made later. Member Nejedly agreed. While Member Williams agreed with the District's mission of providing sewer service, he asked what, if anything, an excluded property owner would have to do to be annexed at a later date. Mr. Leavitt said it was possible that the property owner would have to go through a subsequent CEQA process. President Hockett cautioned that including all nine properties in the annexation could potentially jeopardize the entire project. Member McGill noted that a potential challenge to the final EIR could be limited and relate to just a portion of the project, adding that it concerns him when the EIR process is used to challenge the District's ability to provide service when that is what it is charged to provide. Member Nejedly asked for the Board to receive a copy of all the letters in opposition before considering this matter again. Mr. Kelly thanked the Board Members for their input, noting that staff would take into consideration their comments before bringing the matter back to the Board in the near future with several specific options to consider. 2) Receive annual Household Hazardous Waste Report General Manager James Kelly stated that the Household Hazardous Waste (HHW) Program is an important element of the District's pollution prevention program. In July, the HHW Program completed its 13th year of operation. Senior Household Hazardous Waste Technician Winston Ingram presented a summary of the fiscal year 2010-11 HHW Program Annual Report. 3) Update on Collection System Operations 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 nearly completed construction project. Hand buffing of the floors, startup and balancing of the HVAC system, and other finish work is going well. Preparations are underway for the ribbon-cutting ceremony on November 16, 2011 followed by an open house for employees soon after move-in. In conclusion, Mr. Rozul reported that the contractor was 27 days behind schedule. 4) Update on Contra Costa County Employees' Retirement Association (CCCERA) General Manager James Kelly said a copy of the October 12, 2011 CCCERA Board meeting agenda and a brief explanatory memorandum Book 61 — Page 84 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 were included in the agenda packet. The Board received the information without comment. 5) Announcements The following written announcements were included with the agenda packet: a) Governor Signs Several Bills of Interest to the District b) 4th Quadrennial Contra Costa County Creek and Watershed Symposium c) Status of Contra Costa County Grand Jury Requests/ Responses d) Review of Board/District Policies and Procedures General Manager James Kelly reminded the Board that the annual Employee Service Awards Luncheon would take place on October 21, 2011 in the Multi-Purpose Room. The following additional written announcements were distributed at the meeting: e) Retired Board Member Parke L. Boneysteele's Health f) Information Technology Administrator Mark Greenawalt to Retire g) Pretreatment Compliance Audit h) Contractor Classification Allowed Permits for Building Sewer Work i) Trees in District Easements within the Iron Horse Corridor. b. COUNSEL FOR THE DISTRICT No report. C. SECRETARY OF THE DISTRICT 1) Reminder: Strategic Planning Workshop scheduled for November 3 2011 Secretary of the District Elaine Boehme reminded the Board Members that the Special Board Meeting/Strategic Planning Session would begin at noon on November 3, 2011 in the Multi-Purpose Room. 2) Final review of draft Board Calendar for 2012 Secretary of the District Elaine Boehme stated that the only item appearing to be in question on the draft 2012 Board Calendar was Book 61 — Page 85 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 whether to hold a second meeting in August. Member Williams stated his preference for holding a single meeting in August, which is in keeping with past practice. Member Nejedly disagreed on the premise that it can create too large an agenda for the first meeting in September. Member McGill said that while a lot of public agencies go dark for some or all of August, he did not feel strongly either way. President Hockett said a single August meeting was her preference so the second meeting in August 2012 was eliminated. She requested that staff do what it can to lighten the agenda packet for the first Board meeting in September. 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 October 6, 2011 Contra Costa Mayors' Conference hosted by the City of San Pablo, featuring a program on the challenges of implementing the new Federal Health Care Law. Member McGill reported on the October 11, 2011 Household Hazardous Waste Committee meeting which was also attended by Member Menesini. He summarized the Action Summary and the Board received the report without comment. Member McGill also reported on his attendance at the October 15-19, 2011 Water Environment Federation Technical Exhibition and Conference (WEFTEC) held at the Los Angeles Convention Center. Member Neiedly Member Nejedly and President Hockett reported on the October 17, 2011 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. Member Williams Member Williams and Member Nejedly reported on the October 10, 2011 Real Estate Committee meeting and summarized the Action Summary. The Board received the report without comment. Book 61 — Page 86 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 President Hockett President Hockett reported on the October 6, 2011 Contra Costa Mayors' Conference hosted by the City of San Pablo, featuring a program on the challenges of implementing the new Federal Health Care Law. 2) Announcements Member McGill provided a written report covering Announcements. 7. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A THREE-YEAR CONTRACT WITH ACME FILL CORPORATION THROUGH OCTOBER 31 2014 FOR THE DISCHARGED TREATED LANDFILL LEACHATE FROM THE ACME LANDFILL LOCATED IN MARTINEZ CALIFORNIA General Manager James Kelly stated that the Permit Contract used to authorize discharges from the Acme Fill Leachate Treatment Plant needs to be renewed. On September 15, 2011 the Board authorized a one-month extension through October 31, 2011 to enable staff to re-work certain portions of the Permit Contract where Acme had expressed concerns. Acme communicated its concerns earlier in the week and the District has responded. The current Permit Contract incorporates many changes requested by Acme but also includes additional monitoring that District staff believes is appropriate. Negotiations are continuing on these matters. Mr. Kelly said he was seeking permission to either execute a three-year contract with Acme Fill Corporation or extend the existing contract for another month or longer while negotiations continue. Member McGill clarified that the authorization being sought was to (1) extend the existing contract for a month or more as needed to finalize the new contract terms and keep a Permit Contract in place, and/or (2) authorize the Mr. Kelly to proceed with executing a three-year Permit Contract if the terms are in keeping with those previously discussed with the Board. If not, he said he would expect that Mr. Kelly will bring the matter back to the Board for additional discussion and/or guidance. It was moved by Member McGill and seconded by Member Nejedly to authorize the General Manager to extend the existing Permit Contract for another month or more while negotiations continue, and/or execute a three-year contract with Acme Fill Corporation for discharged treated landfill leachate from the Acme Landfill located in Martinez, California. Motion passed by the following vote of the Board: AYES: Members: McGill, Nejedly, Williams, Hockett NOES: Members: None ABSENT: Members: Menesini Book 61 — Page 87 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 8. BUDGET AND FINANCE a. CONCUR WITH STAFF RECOMMENDATION FOR A CONTRIBUTION OF $4,000 THIS YEAR, AND A SIMILAR CONTRIBUTION EACH YEAR GOING FORWARD, AT THE GENERAL MANAGER'S DISCRETION, TO DEFRAY THE COST OF FOOD FOR THE DISTRICT'S ANNUAL EMPLOYEE ACTIVITIES ORGANIZATION (EAO) HOLIDAY PARTY General Manager James Kelly explained that the Employee Activities Organization (EAO) is a non-profit, voluntary organization that exists to organize activities for District employees. Its primary event each year is the holiday party which is offered free to all District employees and generally attracts over 200 employees. In order to continue to offer this event free of charge, the EAO is requesting a donation toward the cost of food each year to supplement its fundraising activities. It was moved by Member McGill and seconded by Member Williams to concur with the recommendation for a contribution of$4,000 this year, and each year going forward, at the General Manager's discretion, to partially defray the cost of food for the District's annual EAO holiday party. Motion passed by the following vote of the Board: r AYES: Members: McGill, Williams, Hockett NOES: Members: Nejedly ABSENT: Members: Menesini b. RECEIVE AND ACCEPT AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2011, AND APPROVE EXTENDING THE CONTRACT FOR AUDIT SERVICES WITH CROPPER ACCOUNTANCY CORPORATION FOR A SIXTH YEAR, THROUGH NOVEMBER 30, 2012 General Manager James Kelly stated that Cropper Accountancy Corporation has completed its audit of the District's financial statements for the period ending June 30, 2011 and introduced John Cropper to provide an overview. John Cropper addressed the Board, stating that once again he was able to issue the District a clean, unqualified opinion. He introduced his associate, Paul Sasse, who managed this year's audit. Mr. Sasse said they had no difficulties with District staff in performing their audit procedures. Staff has been doing a good job of administering the District's resources and accounting for its financial position. He said the most sensitive estimate included in the financial statements is the calculation of the District's other post-employment benefits (OPEB) liability, currently set at $68.8 million and amortized over the next 30 years. In response to a question from Member McGill, Mr. Sasse said the figure is considered "sensitive" because it has been calculated by an actuary and there is a fair Book 61 — Page 88 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 amount of sensitivity due to its size and the fact that it is based on many assumptions. It was moved by Member Nejedly and seconded by Member McGill to accept the audited financial statements for the fiscal year ended June 30, 2011, and approve extending the contract for audit services with Cropper Accountancy Corporation for a sixth year, through November 30, 2012. Motion passed by the following vote of the Board: AYES: Members: McGill, Nejedly, Williams, Hockett NOES: Members: None ABSENT: Members: Menesini 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 11. CLOSED SESSION The Board recessed at 3:30 p.m. to reconvene in the Board Room in closed session to confer with Legal Counsel regarding the following matter: a. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6 District Negotiators: • Labor Negotiation and Benefits Counsel Edward L. Kreisberg, Esq. • General Manager James Kelly • Deputy General Manager/Director of Engineering Ann Farrell • Director of Administration Randall Musgraves • Human Resources Manager Christopher Ko • Secretary of the District Elaine Boehme Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS/CG) • Management Group The Board recessed at 4:50 p.m. to reconvene in the Board Room in open session. Book 61 — Page 89 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 20, 2011 12. REPORT OUT OF CLOSED SESSION None. 13. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 4:51 p.m. Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: (��p Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Book 61 — Page 90