HomeMy WebLinkAboutBOARD MINUTES 04-05-12MINUTES OF THE REGULAR MEETING
OF THE DISTRICT BOARD OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
HELD ON APRIL 5, 2012
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, April 5, 2012.
President Nejedly called the meeting to order and requested that the Secretary call roll.
1. ROLL CALL
PRESENT: Members: Hockett, Menesini, Williams, Nejedly
ABSENT: Members: McGill
a. PLEDGE OF ALLEGIANCE TO THE FLAG
The Board and staff joined in the Pledge of Allegiance.
b. INTRODUCTIONS
None.
Board Members welcomed three newly hired Utility Workers in the Plant Operations
Department: Jason Atoigue, Brian Walters and Jon Nicolaus.
2. PUBLIC COMMENTS
3. CONSENT CALENDAR
It was moved by Member Hockett and seconded by Member Menesini 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) March 1, 2012; and
2) March 5, 2012.
b. Approve expenditures dated April 5, 2012. Reviewed by Budget and Finance
Committee.
C. Receive February 2012 Financial Statements and Investment Reports. Reviewed by
Budget and Finance Committee.
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d. Accept the financial status and budget of the Self- Insurance Fund and approve
allocation for Fiscal Year 2012 -13 Operations and Maintenance Budget. Reviewed
by Budget and Finance Committee.
e. Authorize modification of Controller job title to Finance Manager and adopt revised
job classification description.
4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER
Item 7. was taken out of order.
5. BIDS AND AWARDS
a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $270,000 TO
PACIFIC INFRASTRUCTURE CORPORATION, THE LOWEST RESPONSIVE AND
RESPONSIBLE BIDDER FOR THE SAN RAMON PUMPING STATION UPGRADES
DISTRICT PROJECT 6003
General Manager Ann Farrell noted that there was an error on the agenda, and the
Board does not need to find that the project is exempt from California Environmental
Quality Act (CEQA). CEQA was already completed as part of the Dougherty Valley
Development.
It was moved by Member Menesini and seconded by Member Williams to award a
construction contract in the amount of $270,000 to Pacific Infrastructure Corporation,
the lowest responsive and responsible bidder for the San Ramon Pumping Station
Upgrades, District Project 6003, and authorize the General Manager to execute the
contract documents subject to submittal requirements. Motion passed by unanimous
vote of the Board.
6. REPORTS
a. GENERAL MANAGER
1) Update on permit counter and connection fee collection matters
Senior Engineer Tom Godsey presented the regular update. He stated that
staff has had discussions with SunGard about the building permit application
use, analyzed the outstanding fees, updated the flow chart categorizing the
fees, created a possible fee scenario matrix for legal determination of what
fees are collectible under the statue of limitations, engaged a team of three
temporary accountants to review and categorize each application, and begun
meeting with city and county representatives to add the District to their building
permit sign -off forms prior to issuance of certificates of occupancy. He
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explained a scenario in which permit counter staff prepares detailed quotes for
customers that reside in the system, but fees are not due until construction is
completed on the project. If the time between the quote and permit issuance
exceeds twelve months, the quoted fees become part of the SunGard
outstanding fee report.
Member Williams asked if it would be possible to collect the fees up front.
General Manager Ann Farrell responded that staff will be looking into that
possibility. District Counsel Kent Alm noted that the possibility was considered
by the Board some years ago, when building industries were of the position
that, by law, the District could not collect those fees up front. At the time, he
opined that the law did not apply to sewer fees. Since then, it has been
clarified that his opinion was correct. Therefore, the District may theoretically
collect fees up front, as many agencies do.
Provisional Environmental Services Division Manager Jarred Miyamoto -Mills
noted that the same issue had arisen when the District instituted its fee deferral
program at the request of the Homebuilders Association three years ago.
2) Announcements
The following written announcements were included with the agenda packet:
a) Staff Retirements
• Information Technology Analyst John Phillips - April 7, 2012
• Pumping Stations Supervisor Steve Larsen - April 9, 2012
b) Promotions — Michael Penny promoted to Senior Engineer
(Environmental Services Division), effective March 26, 2012
c) Human Resources Manager Christopher Ko Elected Vice - President of
Northern California Chapter of International Public Management
Association
d) District Receives the Certificate of Achievement for Excellence in
Financial Reporting
e) Public Bidding for North Orinda Sewer Renovations (Phase 4), District
Project 5973
f) Contra Costa County Employees' Retirement Association Five -Year
Projection of Employer Rate Changes
The following additional written announcements were made at the meeting:
g) Update on Retirement of Information Systems Analyst John Phillips
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h) North Orinda Sewer Renovation Project (Phase 4), Public Workshop,
District Project 5973
i) Memo to Board re Segal five -year projections showing increases to
projections in the Ten -Year Plan of $770,000
j) Update on Solids Conditioning Building cogeneration incident of
March 29, 2012
Mr. Alm indicated that a closed session was included in the agenda with
regard to this matter and suggested that discussion of legal issues be
deferred until then.
Director of Plant Operations Margaret Orr stated that an explosion in the
exhaust system of the cogeneration unit in the Solids Conditioning
Building occurred on March 29, 2012. There were no injuries to District
staff or the employees of the contractor working on the equipment. The
incident occurred during a scheduled semi - annual maintenance, which
began Tuesday, March 27 with a shutdown of the co -gen unit at 9:00
a.m. During the fourth attempt to start the unit at 4:49 p.m. on
Thursday, March 29, there was an explosion in the exhaust system due
to fuel build up. Ms. Orr presented pictures of broken windows, damage
to the exhaust system, shifting of the exhaust stack, and damage to
structural support. She noted that broken glass from the windows has
been removed from the site and will be tested to determine the strength
of the explosion. She stated that staff has hired a firm to help perform a
root cause analysis, which is underway with all parties engaged.
Carollo Engineers is working in parallel with this analysis, with a
structural evaluation forthcoming. Meanwhile, the building has been
approved for occupancy.
b. COUNSEL FOR THE DISTRICT
District Counsel Kent Alm reported that a County appeals board rejected Chevron's
appeal of its 2007 -2009 property tax bills and ordered Chevron to pay an additional
$27 million in taxes for its Richmond refinery. He stated that this would likely impact
the current litigation in which the District is a plaintiff, City of Brentwood et al. v.
Robert Campbell, et al., Contra Costa County Superior Court Case No. N11 -1029.
He referred to a recent article in the Contra Costa Times, which indicated that the
District may receive a $169,887 refund of ad valorem tax based on the recent court
action. He stated that, at this point, it is likely that Chevron will file a lawsuit
contesting the appeal board's decision, but uncertain whether the money would be
redistributed or held by the County until completion of the anticipated litigation.
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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 Hockett
Member Hockett reported on the March 12 -14, 2012 California Association of
Sanitation Agencies (CASA) Legislative Conference in Washington, D.C. The
Board received the report without comments.
In Committee Chair McGill's absence, Member Hockett also reported on the
April 3, 2012 Capital Projects Committee meeting and summarized the Action
Summary. The Board received the report without comments.
President Ne'edl
In Committee Chair McGill's absence, President Nejedly reported on the
April 2, 2012 Budget and Finance Committee meeting and summarized the
Action Summary. The Board received the report without comments.
2) Announcements
No announcements.
7. ENGINEERING
a. CONSIDER AMENDING THE DISTRICT'S CONTRACTUAL ASSESSMENT
DISTRICT (CAD) POLICY TO ALLOW THE DISTRICT TO FUND THE COST OF
NON - PARTICIPANTS IN AREAS SUCH AS EL TOYONAL, WHERE THE COST OF
SEWERS IS COMPARATIVELY HIGH
Provisional Environmental Services Division Manager Jarred Miyamoto -Mills stated
that staff has been working with homeowners in the El Toyonal -Alta Vista -Dos Osos
area of Orinda for many years to extend public sewer service. He presented a map
showing the area and noted that there are 25 undeveloped and 20 vacant unsewered
properties in the area.
Mr. Miyamoto -Mills added that a number of participants have asked the District to
make exceptions to its CAD policy by funding the cost of non - participants' shares and
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later receive reimbursements as non - participants connect over time. If the Board
were to consider such an exception in the El Toyonal Matter, it would slow the
District's recovery of CAD funds, but the area is very costly and difficult to sewer due
to terrain. If sewered through a CAD, it is possible that some properties may not
connect for many years, if ever. There are also a number of residents in the El
Toyonal area who oppose extension of the sewer at this time because of objections to
development, paying the District's "carrying cost" as part of non - participants'
reimbursements, and potentially being required to connect to the sewer involuntarily.
Mr. Miyamoto -Mills summarized the Capital Projects Committee's recommendations
from its April 3, 2012 meeting: (1) to maintain the current CAD policy that requires
participating property owners to cover non - participants' shares, but allows requests
for the Board to consider exceptions under special circumstances; (2) in the case that
an exception is made, to reflect in the public record the justifying circumstances; and
(3) to consider the requested exception for the El Toyonal -Alta Vista -Dos Osos CAD.
Mr. Leo Lieber, 43 Dos Osos Road, Orinda, stated his opinion that it is important to
install a public sewer in the area due to the proximity to the watershed and the
number of homes with deteriorating septic tanks. He noted that, once these tanks are
replaced, property owners will be much less likely to hook up to a sewer. He stated
that failing septic systems are a health hazard, and this has been an issue in the area
for years.
Mr. Joe Lieber, trustee of property at 43 Dos Osos Road (two parcels) and brother of
Mr. Leo Lieber, encouraged the Board to authorize the CAD. He explained that his
property is at a fork in the road needing either a septic system repair or sewer
connection. He stated that he would like a decision to be made on the CAD fairly
soon, otherwise he must repair his septic system. He mentioned that he also owns a
small, undeveloped parcel adjacent to Alta Vista, which could be marketed with a
sewer to a buyer very likely to connect. He cited the District's mission to protect
public health and the environment.
Mr. Russell Cohn, property owner and long -time supporter of the CAD, stated that
since 1970, existing septic systems have been polluting the water supply downhill
from this area and continue to pollute the environment with no abatement. He noted
that the proposed CAD is an opportunity to complete a process that began in 1970 to
remedy a public health hazard. He stated his belief that Mr. Robert Cheasty's
estimated costs per participant over a 20 -year period are affordable for the whole
area. He was in favor of seeing the entire project completed at once, adding that
public health benefits would offset construction disruption concerns.
Mrs. Jill Cohn, wife of Mr. Russell Cohn, echoed her husband's sentiments and asked
that the Board consider solutions and vote in favor of adopting the CAD.
Mr. Robert Wander, a property owner in the area, stated that when the government
imposed a moratorium on septic tanks in the area in 1970, it did not realize it would
take this long to convert the area to sewer. He noted that the Contra Costa Clean
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Water Program has been tasked with implementing new State and Federal clean
water mandates, and the Flood Control and Water Conservation District has been
working with 19 cities to accomplish this. He stated his belief that, as a result of
pollution, local communities could be forced to pay fines and be subjected to third -
party lawsuits. Reading from a flyer he brought with him, he stated that not installing
sewers could lead to pollution. He stated that a sanitary system is long overdue in
the area; the number of people willing to join the CAD has grown over 10 years, and
the CAD should be formed now with this momentum.
Mr. Michael Bowen stated that he was not supportive of a CAD, adding that it is
important to recognize a real threat versus a perceived threat. He stated that much
rhetoric has been shared about the threat of violations of the Clean Water Act. He
stated that the support for the CAD comes mostly from those who wish to develop
vacant lots. There is very little support amongst homeowners for a number of
reasons, including inaccessibility for emergency services, unstable terrain, and
concerns of extensive development. He asked the Board to consider if the expense
to ratepayers is worth it if it brings 15 to 20 new homes on vacant lots, compared to
the cost of remedying three septic tanks.
In response to a question from Member Williams, District Counsel Kent Alm
confirmed that Member Williams did not have a conflict of interest in the matter
because of his position as Director of Wastewater at East Bay Municipal Utility District
( EBMUD). While EBMUD may have a position on the matter, it would have no
financial impact on Member Williams, so there was no conflict.
Mr. Robert Cheasty spoke on behalf of Robert and Ingrid Wander, property owners in
the area. He stated that the moratorium has created a problem for those who want to
have a home in the area. He suggested that a CAD that included gravity -fed sewer
lines on the downhill properties would protect the watershed at a reasonable cost. He
estimated a monthly cost of $179.11 per participant to install a $600,000 sewer line to
the Wander property, assuming 24- to 25 -lot participation and 20 -year financing at six
percent. He noted that the feasibility for the property owners was directly related to
price, and the City's building requirements would prohibit extensive development, and
would allow for the ability to expand and modernize. He stated that there would be no
significant or adverse effects on the neighborhood, but instead, better and significant
health benefits in protecting the watershed, and access to sanitary sewers for those
living there.
Member Williams stated that he appreciated the area with its unobstructed views, and
that those who live there would like to keep it that way. He noted there may be issues
with fire access and safety with development, but cited the District's fundamental
mission as a sanitary district to provide service to communities. The District has rules
and regulations it follows in pursuing that, and the Board has the opportunity to follow
its mission with people in the area who would like to see that happen. He stated that
he was leaning toward supporting the CAD, but also was sensitive to the issue of
picking up non - participants' costs as a use of District funds to help private individuals.
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Member Hockett stated that she was in favor of helping the public connect to sewers,
as that is what the District does, and supported financing of the project. She was in
support of staff's suggestion to link costs to refinancing, selling and transfers of
property, stating that connecting legal processes to the District's reimbursement is
critical for the District to be responsible. She asked about the possibility of expanding
the project, and if more feasible, to do so in two phases. She stated that she does
not want to see the CAD fail, or for the District to be too rigid.
President Nejedly stated that the Board provides sewer service, and it is not its role to
be pro- or anti - developer. He stated that he does not agree with sponsoring non-
participants for undeveloped properties. He believed that would be encumbering a
piece of property for all the wrong reasons. He noted that Mr. Cheasty's monthly
estimated cost of $179.11 may not be as doable for some as for others, and, for
CADs to go forward, generally a certain percentage of property owners have to
participate. He agreed with prior opinions that the area is a hazard, with heavy
rainfalls causing septic tank contents to flow into creeks. He agreed with Member
Hockett's suggestion to expand the project for everyone's sake, but noted that
participation levels need to be considered. He suggested that staff generate hard
numbers and bring the item back to the Board.
Member Menesini suggested looking at comparative numbers for the Alhambra Valley
Assessment District (AVAD), noting that at the moment, it seemed there are not
enough participants to warrant the District investing a large amount of money with a
questionable return. He asked for a comparative analysis with the AVAD and the
difference in how much it would cost the District to participate.
Mr. Miyamoto -Mills summarized that the Board would like to see alternatives for
extended service to all properties and phasing alternatives. District Counsel Kent Alm
confirmed the Board's interest in financing plans with different rates since the original
rates were set years ago. He confirmed the ability for staff to look at alternatives to
reduce costs and provide the Board with the information to weigh all its options.
b. ADOPT RESOLUTION 2012 -025 APPROVING A REVISED BOUNDARY TO
ACCOMMODATE 13 PROPERTIES FOR ST. MARY'S ROAD CAD NO. 2011 -1 IN
LAFAYETTE AND RESCINDING RESOLUTION 2011 -009 AND CONSIDER
REQUEST FOR THE DISTRICT TO COVER SOME OF THE NON - PARTICIPANT
COSTS
Provisional Environmental Services Division Manager Jarred Miyamoto -Mills
described the St. Mary's Road CAD and stated that the modification of the boundaries
will shorten the project in the light of insufficient initial participation. He stated that the
revised project excludes the four southernmost properties, leaving 13 properties at a
cost of approximately $378,000. As modified, the CAD meets the formation criteria.
If the CAD goes forward, the Board will consider a revised Engineer's Report and
order revised improvements. The Board will then set final assessments for the
financing.
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It was moved by Member Hockett and seconded by Member Williams to adopt
Resolution 2012 -025 approving a revised boundary to accommodate 13 properties for
St. Mary's Road CAD No. 2011 -1 in Lafayette and rescinding Resolution 2011 -009.
Motion passed by unanimous vote of the Board.
Mr. Miyamoto -Mills described St. Mary's Road as a busy street with traffic control
issues and a paving moratorium requiring substantial pavement restoration after
project completion. The sewer would be a multi -user pump system, so every
individual lot would be required to have a pump station and pressure sewer. Due to
unusually high costs for initial participants, there has been a request to cover the non-
participants' shares, resulting in a difference of $39,000- 66,000 per participant versus
$27,000 - 47,000 with the District covering 5.5 shares.
President Nejedly suggested bringing back the matter of covering the non-
participants' shares at a later date, since the Board will also consider the El Toyonal-
Alta Vista -Dos Osos at a later date.
Member Hockett moved the payment of the non - participants' shares, stating that she
did not need more information. Mr. Miyamoto -Mills stated that, in any case, staff will
need to redo the Engineer's Report. Following that, there will be a 45 -day review
period, so the item can be revisited by the Board in two months with financing issues
and other contract language for its consideration.
Member Menesini moved reviewing the item in two months as suggested by staff, and
the remaining Board Members concurred.
8. HUMAN RESOURCES
a. APPROVE STAFFING PLAN FOR FISCAL YEAR 2012 -13
Human Resources recommended Board approval of this item at its March 8, 2012
meeting.
It was moved by Member Hockett and seconded by Member Williams to approve the
Staffing Plan for Fiscal Year 2012 -13. Motion passed by unanimous vote of the
Board.
b. AUTHORIZE HIRING OF 36 STUDENTS FOR SEASONAL EMPLOYMENT FOR
FISCAL YEAR 2012 -13
It was moved by Member Hockett and seconded by Member Williams to authorize
hiring of 36 students for seasonal employment for Fiscal Year 2012 -13. Motion
passed by unanimous vote of the Board.
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None.
None.
CENTRAL CONTRA COSTA SANITARY DISTRICT
Board Minutes of April 5, 2012
9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION
10. SUGGESTIONS FOR FUTURE AGENDA ITEMS
11. CLOSED SESSION
The Board recessed at 3:39 p.m. to reconvene in closed session in the Caucus Room.
a. Conference with Legal Counsel — Existing Litigation pursuant to Government Code
Section 54956.9(a):
• Schaeffer, et al. v. Gregory Village Partners, L.P. Central Contra
Costa Sanitary District, et al., Contra Costa County Superior Court
Case No. MSC11- 01307.
b. Conference with Legal Counsel - 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.
C. Conference with Legal Counsel — Anticipated Litigation — initiation of litigation
pursuant to Government Code Section 54956.9(c).
• One Potential Case.
The Board recessed at 4:20 p.m. to reconvene in the Board Room in open session.
12. REPORT OUT OF CLOSED SESSION
District Counsel Kent Alm reported that the Board directed staff to reject the 998 Demand
received in connection with Item 11.a.
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Board Minutes of April 5, 2012
13. ADJOURNMENT
There being no further business to come before the Board, President Nejedly adjourned the
meeting at 4:20 p.m.
Ja A. Nejedly
resident 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
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