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HomeMy WebLinkAbout03.a.1) Approve minutes of meeting held December 15, 2011MINUTES OF THE REGULAR MEETING 3, a . OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 15, 2011 J 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, December 15, 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 • Selina Zapien, Human Resources Analyst The Board Members welcomed new employee Selina Zapien. 2. PUBLIC COMMENTS There were no public comments 3. CONSENT CALENDAR It was moved by Member McGill and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve minutes of Board meetings held on the following dates: 1) November 17, 2011; 2) November 21, 2011; and 3) November 28, 2011. b. Approve expenditures dated December 15, 2011. Reviewed by Budget and Finance Committee. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 C. Adopt Resolution 2011 -063 setting January 26, 2012 at 2:00 p.m. as the date and time for a public hearing to consider the establishment of a St. Mary's Road Contractual Assessment District (CAD) No. 2011 -1 in Lafayette. d. Confirm publication of a summary of District Ordinance No. 269 (uncodified) establishing reimbursement fees for the properties which could connect to Job 9476 (Sunnybrook Road CAD No. 2010 -1) in Alamo. e. Adopt Resolution 2011 -064 accepting a grant of easement from Stanley Gerry and Nannette Wyler Rand, property owners at 119 El Centro in the Calle del Casarillo neighborhood in Diablo, District Project 5953, Parcel 13, and authorizing staff to record the documents with the Contra Costa County Recorder. Accept the contract work for the Treatment Plant Elevator Modernization, District Project 7281, performed by Elevator Technology, and authorize filing of the Notice of Completion. g. Authorize medical leave of absence without pay for Maintenance Crew Member II David Quintero through June 13, 2012. 4. PUBLIC HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION 2011 -066 TO (1) DECLARE THE DISTRICT'S KIEWIT PROPERTY LOCATED OFF IMHOFF DRIVE IN MARTINEZ (APN 159 - 140 -051) AS CURRENTLY UNNEEDED; AND (2) CONSIDER AMENDING THE CURRENT LEASE WITH _COUNTY QUARRY (FOR USE AS A CLEAN FILL SITE) TO EXTEND IT TO DECEMBER 31, 2012 Director of Administration Randall Musgraves stated that the Kiewit property is approximately 33 acres between Grayson and Walnut Creeks and used as a buffer zone. To raise revenue, the District leased the property five years ago to County Quarry for use as a clean fill operation. For the past ten months, County Quarry has performed in full compliance with District expectations but the Real Estate Committee wishes to monitor County Quarry's performance for another 12 months. He said the lease extension is consistent with the Real Estate Committee and Board direction and the Committee recently recommended Board approval of the proposed amendment. The public hearing was opened and closed without comments. It was moved by Member Nejedly and seconded by Member McGill to adopt Resolution 2011 -066 declaring the District's Kiewit property located off Imhoff Drive in Martinez (APN 159- 140 -051) as current unneeded, and amend the current lease with County Quarry (for use as a clean fill site) to extend it to December 31, 2012. Motion passed by unanimous vote of the Board. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 b. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION 2011 -067 TO (1) DECLARE THE DISTRICT'S PROPERTY LOCATED AT 5501 IMHOFF DRIVE IN MARTINEZ (APN 159 - 140 -052) AS CURRENTLY UNNEEDED; AND (2) CONSIDER AMENDING THE CURRENT LEASE WITH COUNTY QUARRY (FOR USE AS A CONCRETE /ASPHALT OPERATION AND FOR THE STORAGE OF CRUSHED ROCK) TO EXTEND IT TO DECEMBER 31, 2012. Mr. Musgraves noted that the property was purchased as a buffer and subsequently leased to County Quarry for the past 26 years for a concrete and asphalt materials recycling operation. The District's lease also provides for use of an additional 1.5 acres of the Kiewit site for additional storage of crushed rock on an as needed basis with additional rental payments. Mr. Musgraves explained that approximately two years ago, staff had some concerns about the lessee's performance in terms of pile height, dust, traffic and the storage of old equipment on the property. The District extended the lease for the calendar year 2011 with stipulated expectations and, for the past 10 months, County Quarry has been in complete compliance. Nevertheless, for reasons similar to those surrounding the Kiewit lease referenced in Item 4.a. above, the Real Estate Committee wishes to monitor the performance for a longer period of time and has recommended a one -year lease extension. The public hearing was opened and, closed without comments. It was moved by Member McGill and seconded by Member Nejedly to adopt Resolution 2011 -066 declaring the District's Kiewit property located at 5501 Imhoff Drive in Martinez (APN 159 - 140 -052) as current unneeded, and amend the current lease with County Quarry (for use as a concrete - asphalt operation and for the storage of crushed rock) to extend it to December 31, 2012. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 6. REPORTS a. GENERAL MANAGER 1) Update on pension reform legislation General Manager James Kelly referred to the update memorandum in the agenda packet. The Board received the information without comment. 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 2) Report on potential El Toyonal -Alta Vista -Dos Osos Contractual Assessment District General Manager James Kelly said that for several years a group of property owners in the El Toyonal area of the City of Orinda have been trying to garner enough support to form a Contractual Assessment District (CAD) to construct a public sanitary sewer in their neighborhood. The cost per property to construct a sewer in that area is higher than average primarily due to large lot sizes and a steep, narrow and winding access road. One of the coordinating owners, Mr. Russell. Cohn, requested that the Board consider providing greater District financial support for the CAD than is allowed under the current CAD policy. Engineering Assistant Russell Leavitt presented a map of the proposed CAD area, which includes 45 properties (25 of which are developed) in four adjoining neighborhoods -- El Toyonal, Camino Del Monte, Alta Vista and Dos Osos, collectively referred to as "El Toyonal." Should a sewer system be installed, it is likely that some of the lots would never be developed /connected to the sewer either because of an irregular shape or they are owned by an adjoining parcel owner and serve only as a buffer or backyard. All of the properties are in an East Bay Municipal Utility District (EBMUD) watershed that drains to a nearby reservoir and have been under a County Health Department Septic Moratorium since 1970. No new septic systems are allowed on undeveloped properties and only repairs and replacements are allowed on developed properties. He reviewed the District's current rules regarding CADs, as indicated in the agenda packet, and presented proposed ramifications and considerations of greater involvement by the District in the proposed project. Ultimately, he said the District could (1) maintain its current policy requiring that participants cover the costs for non - participants, (2) choose to cover the costs for the non - participants, or (3) consider alternative levels of District participation in this and future CADs. Mr. Kelly pointed out that the Capital Projects Committee was recently briefed on this issue. The Committee Members indicated a willingness to consider the property owners' requests for funding assistance, but their preliminary thoughts were that the District should require a critical mass of participants, for example, owners of significantly more than 50 percent of the properties, such that District funds at risk were minimized. District Counsel Kent Alm noted that if an El Toyonal CAD were to go forward with atypical funding, the issue of prevailing wages should be reviewed. Mr. Cohn explained that the Contra Costa Health Department imposed the septic moratorium in 1970 based on concerns about failing septic systems fouling the drinking water held in the local reservoirs. Some property owners believe that sewer access could promote growth in the area, to 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 which they are opposed. In the meantime, many pre- existing septic systems continue to operate in the area. For the past 10 years Mr. Cohn and others have attempted to split the area into several smaller CADs to facilitate bringing sewer access to those who desire it. Robert C. Cheasty of Cheasty & Cheasty, a Berkeley law firm, spoke on behalf of Robert and Ingrid Wander, two of the pro -sewer property owners in the El Toyonal area. He presented a letter dated December 13, 2011 addressed to the Board Members setting forth his clients' desire to develop their property and their proposed approach to accomplish that with the District's assistance. Member Williams asked Mr. Alm if he had any conflict of interest in acting on this matter due to his employment with EBMUD. Mr. Alm said this matter would have no financial impact on Member Williams so there was no conflict. Mr. Kelly acknowledged Member Williams' conclusion that if the District funded the shares for non - participants and they never joined the CAD in the future, it is conceivable that the District might never get repaid. Member Williams questioned whether District funding in this instance would set a precedent for future CADs. Provisional Environmental Services Division Manager Jarred Miyamoto -Mills said it could, but the Board could still deny funding to other CADs down the road. Member Williams also asked how the El Toyonal CAD factored into the District's overall budget. Mr. Miyamoto -Mills said there is approximately $5 million in prospective CAD work in the future, for which $500,000 has been allocated each year in the proposed 2012 Ten -Year Plan. It was the general consensus of the Board that additional information is needed in order to make any decisions about the proposed project. Specifically, the following information was requested: a) Refinement of the actual anticipated participation rate. b) Options for "phasing" in the CAD at different times. Mr. Kelly said staff would gather this information and report back to the Board. 3) Report on possible installment payments of past due connection fees General Manager James Kelly noted that from time to time, the Board is asked to approve installment payment agreements for business owners or homeowners who request special relief from payment of past due fees. Provisional Environmental Services Division Manager Jarred Miyamoto- Mills presented a current request from the owners of property located at 66 Alberta Terrace in Walnut Creek. He discussed the options for collection of past due fees, including the use of installment payment 9 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 agreements or continuing the District's current practice of placing delinquent fees on the County property tax roll. Mr. Miyamoto -Mills said the issue of collection of past due fees was recently discussed with members of the Budget and Finance Committee, who suggested that future installment payment recommendations continue to come to the Board rather than be delegated to staff, but that staff should develop guidelines regarding terms of installment payments for consideration by the Board. Possible guidelines might include (1) a set interest rate per the District's Schedule of Rates and Charges (currently 6 percent), and (2) varying repayment terms based on the amount owed. District Counsel Kent Alm said another option was to provide additional authority to staff for dealing with some of these past due fees (which would involve changes to the District Code). It was the consensus of the Board members present to continue with the current practice of bringing proposed installment payment recommendations for past due fees to the Board for consideration. President Hockett suggested that staff investigate ways it can minimize the occurrence of these situations going forward. Deputy General Manager /Director of Engineering Ann Farrell said that staff is reviewing methods used by other agencies in this regard and noted that more should be known upon conclusion of the audit currently being conducted by Bartle Wells Associates of the Environmental Services Division's application of policies, procedures and practices regarding fees, rates and charges. 4) Announcements The following written announcements were distributed at the meeting: a) General Manager vacation scheduled for next week b) Retirement of Dr. Gail Chesler, PhD, PE effective December 16, 2011 c) National Pollutant Discharge Elimination System ( NPDES) Compliance Evaluation Inspection held December 12, 2011 d) San Ramon City Council approves new HHW Collection Facility Agreement e) Update on NPDES Permit renewal General Manager James Kelly said the Permit, as written, is supported by the San Francisco Regional Water Quality Control Board ( RWQCB). The RWQCB wants to present it for approval at their February 8, 2012 meeting subject to certain conditions, including that the District would not contest either (1) a California CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 Water Code Section 13267 letter or (2) a letter written in conjunction with Bay Area Clean Water Agencies (BACWA) that commits the District to conducting further studies, many of which are already ongoing. A meeting has been arranged for January 4, 2012 with the State and Federal Contractors Water Agency (SFCWA) Executive Director and Scientific Director to discuss the ongoing collaborative efforts with regard to scientific work, their recent letter of protest, and to obtain information about their members' ongoing request for additional extension of their water contracts with the Bureau of Reclamation. D Anticipated receipt of annual RWQCB outfall maintenance letter General Manager James Kelly said the RWQCB is considering the District's request for approval to discharge to Walnut Creek for a period of time this summer while the outfall undergoes maintenance work. He said further details will be provided to the Board once the response is received. In response to a question from Member Williams, Mr. Kelly and Mr. Alm explained that while there is a bypass provision for essential maintenance, the regulatory agencies are not obliged to approve such requests. Seeking approval in advance would mitigate any regulatory issues. g) Transportation assistance for Member Menesini General Manager James Kelly noted that Member Menesini recently has been unable to walk on his own. Staff is considering different methods for transporting him back and forth to meetings while he is unable to walk, including securing the services of a handicapped licensed transportation company. 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 send; 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 rl 2) CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 Member Williams Member Williams reported on his participation as President of NACWA as moderator of a panel on the Environmental Protection Agency's (EPA) "Integrated Planning" initiative. Member Neiedly Member Nejedly reported on the December 12, 2011 Budget and Finance Committee meeting which was also attended by President Hockett. The Board received the report without comment. Member McGill noted that the Action Summary for the Budget and Finance Committee's December 12th meeting indicated that a closed session was scheduled. He asked how other Board Members are informed as to what transpires during Committee closed sessions. Mr. Alm said that while closed sessions have been scheduled for several recent Budget and Finance Committee meetings, only one ended up being held and they are a relatively rare occurrence at the Committee level. Nonetheless, he said there is no set procedure; however, there should be a confidential communication to the other Board members if the matter is not being presented to the full Board. Receive proposed 2012 Board Committee and other assignments - President -Elect Neiedly President -Elect Nejedly presented the following listing of proposed 2012 Board Committee and other assignments: Budget and Finance Committee Chair: Williams Member: Nejedly Capital Projects Committee Chair: McGill Member: Hockett Household Hazardous Waste Committee Chair: Williams Member: Menesini Human Resources Committee Chair: Hockett Member: Williams Outreach Committee Chair: Menesini Member: McGill Real Estate Committee Chair: Menesini Member: Nejedly CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 Recycled Water Committee Chair: Hockett Member: Nejedly California Special Districts Association Contra Costa Chapter Representative: McGill Alternate: Williams Board Liaisons to Cities and Count Concord, Contra Costa County Liaison: Nejedly Alamo, Danville, San Ramon Liaison: Hockett Pleasant Hill, Walnut Creek Liaison: McGill Martinez, Pacheco Liaison: Menesini Moraga, Orinda, Lafayette Liaison: Williams The Board received the assignments without comment or changes. 3) Announcements Member McGill provided a written report covering Announcements and other meetings. 7. ADMINISTRATIVE a. ADOPT RESOLUTION 2011 -065 SETTING FORTH AND DELEGATING CERTAIN AUTHORITIES TO THE GENERAL MANAGER AND RESCINDING PRIOR RESOLUTION 2010 -090; AUTHORIZE REVISION TO TABLE 3, "CAPITAL IMPROVEMENT PROGRAM AUTHORIZATION LIMITS ", OF THE 2011 -12 CAPITAL IMPROVEMENT BUDGET: AND AUTHORIZE REVISIONS TO THE CHAPTERS ENTITLED "APPROVALS AND AUTHORIZATIONS" AND "DISTRICT PROJECTS" OF THE DISTRICT'S PURCHASING POLICIES AND PROCEDURES MANUAL General Manager James Kelly referred to the position paper and supporting documentation that was included in the agenda packet and asked for comment. There being no questions or comments, it was moved by Member Williams and seconded by Member McGill to (1) adopt Resolution 2011 -065 setting forth and delegating certain authorities to the General Manager and rescinding prior Resolution 2010 -090; (2) authorize revision to Table 3, "Capital Improvement Program Authorization Limits," of the 2011 -12 Capital Improvement Budget as recommended; and (3) authorize revision to Chapters 3 and 12 entitled "Approvals and Authorizations" and "District Projects" of the District's Purchasing Policy and Procedures Manual as recommended. Motion passed by unanimous vote of the Board. 9 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 b. APPROVE UPDATED ADMINISTRATIVE OVERHEAD PERCENTAGE OF 194% FOR FISCAL YEAR 2012 -13 General Manager James Kelly reported that each year staff sets the administrative overhead rate and brings it to the Board for consideration in December. This overhead rate, which is used to recover costs for services the District provides to others such as the Clean Water Program and Household Hazardous Waste Program, is calculated to be 194 percent for Fiscal Year 2012- 13. It was moved by Member Nejedly and seconded by Member McGill to approve using 194 percent as the administrative overhead percentage for Fiscal Year 2012 -13. Motion passed by unanimous vote of the Board. 8. CAPITAL IMPROVEMENT BUDGET PLANNING WORKSHOP a. RECEIVE PRESENTATION AND DISCUSS DEVELOPMENT OF DRAFT FISCAL YEAR 2012 -13 CAPITAL IMPROVEMENT BUDGET (CIB) AND 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN (CIP) Ann Farrell, Deputy General Manager /Director of Engineering, presented a summary of the proposed 2012 Ten -Year Capital Improvement Plan and the Fiscal Year 2012 -13 Capital Improvement Budget (CIB). She noted that staff recently met with the Capital Projects Committee to present a preliminary version of this material. Ms. Farrell began by noting that the proposed 2012 Ten -Year Plan for the District's capital improvement program totals $358 million. Spending during the first seven years averages roughly $30 million per year. During the later three years, when budgeting begins for a $70 million treatment plant nitrification project for ammonia removal, the annual spending increases. She briefly reviewed the most significant capital projects envisioned for the treatment plant, collection system program and seismic improvements. In terms of capital project funding, Ms. Farrell recalled that at one time the capital component of the sewer service charge was adequate to fund the capital program but in recent years the District has been deficit spending on its capital program to avoid increasing the sewer service charge. That trend was expected to abate with the adoption last year of a two -year rate increase of $30 per household per year. Because of the rate increase, the capital component of the sewer service charge rose $28, from $11 in Fiscal Year 2010 -11 to $39 in Fiscal Year 2011 -12. However, for Fiscal Year 2012 -13, it will remain at $39 because all additional revenues from the second -year rate increase must be redirected to the operations and maintenance budget, primarily to cover increased unfunded pension liabilities stemming from the effects of de- pooling by Contra Costa County Employees' Retirement Association (CCCERA). It is estimated that a capital component amount of $84 -86 per household would be needed to fully 10 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 fund a $30 million annual capital program, which is more than $40 per household above the current funding level. Ms. Farrell explained that the minimum balance requirement for the Sewer Construction Fund, the District's source of funds for paying bills between revenue receipts, is $35 million. Based on projected revenues in Fiscal Year 2012 -13, the Sewer Construction Fund balance will decline to approximately $40 million, leaving little room beyond that needed to maintain the District's cash flow. On the positive side, Ms. Farrell said it appears that revenues for the current fiscal year may be a bit higher than budgeted due to capacity fees related to various upcoming developments. Assuming revenues as currently projected, Ms. Farrell said the capital component of the sewer service charge will need to increase by $20 per household in Fiscal Year 2013 -14 and another $20 per household in Fiscal Year 2014 -15 to bring capital funding to the baseline $30 million - per -year figure. Thereafter, only modest cost of living increments should suffice until Fiscal Year 2018 -19, when spending is expected to increase to fund soil remediation/ nitrification projects. She noted that these figures are strictly based on the capital program and include nothing to cover operations and maintenance. Ms. Farrell next addressed the issue of the District's bonding capacity. The District's total unfunded liabilities are approximately $257 million, roughly half of which are attributable to CCCERA pension costs. There has been preliminary discussion about using bond financing to pay down the unfunded pension liability and staff is in the process of evaluating that issue. However, in the past, she said the District has tried to preserve its bond funding capacity to cover unexpected regulatory capital projects. So, as the Board examines alternative methods of dealing with unfunded pension liabilities, she said it is important that the District's ability to sell bonds for unanticipated capital projects is not compromised. The Fiscal Year 2012 -13 Capital Improvement Budget includes $7.4 million for the treatment plant, $13.7 million for the collection system program, $7.3 million for general improvements (primarily seismic), and $3.9 million for the Recycled Water Program (including $3.4 million for the Concord Landscape Irrigation (of which $1 million is expected to be reimbursed). With regard to the treatment plant, she noted that several Board Members were interested in the outcome of the Treatment Plant of the Future exercise that took place earlier this year, which looked at how to sustainably treat wastewater for the next 50 years and beyond. The District invited two independent consultants to make presentations on what they thought the plant of the future might look like. Several university professors served as technical advisors to ask questions of the consultants. The exercise revealed that the District's treatment plant was state of the art when it was designed and it remains substantially that way to this day, with its emphasis on heat and phosphorus recovery. The wastewater industry is undergoing a lot of change as it "morphs" into one that focuses on ill CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 sustainability. Researchers are looking at ways to remove nitrogen and nutrients using less energy, and some Bay Area colleagues are looking at biosolids -to- energy conversion projects as an alternative to incineration. The recommendation after the Plant of the Future exercise was to maintain the District's current facility over the next five to seven years while monitoring the research in order to identify future technologies that would best meet the District's needs. That recommendation has been built into the proposed 2012 Ten -Year Capital Improvement Plan. With regard to solids handling methods, Ms. Farrell reminded the Board that staff developed a comprehensive integrated energy /greenhouse gas model to analyze different scenarios for planning purposes. The base model simulates greenhouse gas production, energy usage and costs for current operating conditions. Various scenarios that can be overlaid onto the model include switching to fluidized bed incinerators, continuing with multiple hearth furnaces, and switching to anaerobic digesters. Variables for a range of power and energy sources can be input to test the sensitivity of the different scenarios to energy prices. Preliminary findings, which were also reviewed by the Plant of the Future consultants, indicate that the most prudent approach for the District in terms of solids handling is to maintain the existing multiple hearth furnaces over the next five to ten years while keeping an eye on how solids handling technologies evolve. Ms. Farrell briefly reviewed capital asset management for the treatment plant. Condition assessments indicate that primary sedimentation tank renovations are considered a wise investment since the tanks likely will be used for a number of years. These renovations would include improvements to the scum spray system and the installation of baffles to improve solids capture and save energy. The grit handling facilities are odorous and reaching the end of their useful life. They would be rebuilt for better odor control and relocated further away from Highway 4. With regard to anticipated regulatory changes, specifically ammonia removal, Ms. Farrell recapped staff's efforts over the past year in terms of renewal of the District's NPDES permit. While ammonia removal is looking more and more likely within the next ten years, it is hoped that the Regional Water Quality Control Board will hold off imposing any mandates pending collaborative studies in the Suisun Bay over the next five years. Ms. Farrell said the 2012 Ten -Year Plan includes $70 million for ammonia removal starting in 2018 and she showed a slide indicating where the tanks would be located on the plant site. If nutrient removal becomes necessary, more tanks would be added. One issue with additional treatment is that the soil where the tanks would be located is contaminated and the cost to remediate the soil is high. The 2012 Ten -Year Plan includes $20 million for this purpose in 2019. In terms of the collection system program, Ms. Farrell said the proposed Fiscal Year 2012 -13 Capital Improvement Budget includes funds to continue television inspection of the sewer lines. Of the 82.8 miles of pipe identified by television 12 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 inspection as needing repair, a total of 36.9 miles will have been renovated by the end of the current fiscal year. The 2012 Ten -Year Plan includes funds to renovate the remaining 45.9 miles within the next six or seven years, after which pipe renovation will begin on damaged pipe discovered in the next round of television inspections. She noted that the District's pipe renovation program has contributed to reduced sewer service overflows. All high - priority capacity projects identified in the recent update of the Collection System Master Plan are included in the Ten -Year Plan, the first being the Grayson Creek area in Pleasant Hill. Another project will be installation of a gravity sewer from the Buchanan South Pump Station to the District's 96 -inch A -Line Interceptor, which will allow abandonment of that pump station. The General Improvements Program includes about $1.4 million for information technology (IT) improvement. Approximately $500,000 of that will be used for upgrading the District's Geographical Data Integration mapping system because the existing software is becoming outdated and beginning to not be supported. The balance of the IT budget is undefined pending the hiring of a new IT Administrator who will be meeting with District staff and reviewing his findings with the Capital Projects Committee to look at IT improvements. A significant part of the General Improvements Program, $4.75 million, includes seismic retrofitting of District facilities in Martinez due to their proximity to the Concord Fault. The facilities include the Headquarters Office Building (HOB), Pump and Blower Building, Plant Operations office area, Warehouse and Laboratory. Given that future solids handling methods are still uncertain, Ms. Farrell said the $7 to $8 million estimated cost of retrofitting of the Solids Conditioning Building is not included in the 2012 Ten -Year Plan. She explained the reasons for selecting an interior retrofit option for the HOB, despite the fact that staff will need to be relocated during the retrofit process. Finally, Ms. Farrell spoke with regard to the Fiscal Year 2012 -13 Recycled Water Program. The largest expense of the total $3.9 million budget is $3.4 million for the Concord Landscape Project, which was approved at the last Board meeting. She reminded the Board that a $1.2 million grant is anticipated, which will defray a portion of the project cost. The Martinez Refinery Project will be going forward with a feasibility study, which is also included in the budget. At this point, Ms. Farrell said the Board was being asked to concur that the proposed preliminary capital expenditure figures for Fiscal Year 2012 -13 and the subsequent nine years are acceptable for inclusion in the financial planning documents to be reviewed by the Board at workshops currently scheduled to take place in February and April 2012, and culminating in the Board's voting in June 2012 to set the capital budget for Fiscal Year 2012 -13 and beyond. She also sought the Board's acknowledgment that the funding gap for the capital program has not been closed and there is a need to look at future rate increases. The Board thanked Ms. Farrell for her presentation and concurred with the preliminary recommendations as proposed. However, Member Williams 13 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 commented that with all the funding pressures, budgeting nearly $2.5 million for recycled water when others should be paying for it is unwise in his opinion. He wondered how the District can articulate the value of such investments to the ratepayers other than goodwill and it being the "right thing to do." Ms. Farrell noted that it has been the Board's policy decision to pursue a recycled water program. 9. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT IN THE AMOUNT OF $275,000 TO A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH KPFF CONSULTING ENGINEERS, FOR A NEW COST CEILING OF $406,580, FOR SEISMIC IMPROVEMENTS FOR THE HEADQUARTERS OFFICE BUILDING (HOB), DISTRICT PROJECT 8226 None. None. General Manager James Kelly said this projects deals with final design of seismic retrofit work to be performed on the Headquarters Office Building (HOB). It seeks Board authorization of a $275,000 amendment to KPFF's existing agreement to complete the detailed design and prepare bid documents. In addition to the seismic retrofit, the project will include improvements such as carpeting, painting, and other items to improve the functionality of HOB. An interior retrofit scheme has been selected which will require the relocation of HOB staff during the retrofit process. Staff will work on relocation details and maintaining business operations as detailed design progresses, and will brief the Board as details are developed. Board and Committee meetings will continue to be held at the Martinez campus. Construction is estimated to cost $4.3 million. It was moved by Member McGill and seconded by Member Williams to authorize the General Manager to execute a $275,000 amendment to the existing professional services agreement with KPFF Consulting Engineers for the Seismic Improvements to the District's Headquarters Office Building, District Project 8226, to increase the cost ceiling to $406,580. Motion passed by the following vote of the Board: AYES: Members: McGill, Williams, Hockett NOES: Members: Nejedly ABSENT: Members: Menesini 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 11. SUGGESTIONS FOR FUTURE AGENDA ITEMS 14 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of December 15, 2011 12. ADJOURNMENT There being no further business to come before the Board, President Hockett adjourned the meeting at 4:13 p.m. James A. Nejedly 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 District Central Contra Costa Sanitary District County of Contra Costa, State of California 15