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HomeMy WebLinkAboutBOARD MINUTES 04-12-12 (Special)MINUTES OF THE SPECIAL MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON APRIL 12, 2012 The Board of Directors of the Central Contra Costa Sanitary District convened in a special meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, April 12, 2012. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, McGill, Menesini, Williams, Nejedly ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS There were no public comments. 3. CONSENT CALENDAR a. ADOPT RESOLUTION 2012 -026 APPOINTING ASSISTANT TO THE SECRETARY OF THE DISTRICT DONNA M. ANDERSON AS SECRETARY PRO TEM IN THE ABSENCE OF THE SECRETARY OF THE DISTRICT As explained in the position paper associated with this agenda item, President Nejedly said it was staff's recommendation to adopt a resolution appointing Assistant to the Secretary of the District Donna M. Anderson as Secretary Pro Tern in the absence of the Secretary of the District, and appointing the Finance Manager (or equivalent position) as Alternate. It was further recommended that Resolution No. 2001 -053 adopted December 20, 2001, appointing recently retired Director of Administration Randall M. Musgraves as Secretary Pro Tern, be rescinded. It was moved by Member McGill and seconded by Member Williams to adopt Resolution No. 2012 -026 appointing Assistant to the Secretary of the District Donna M. Anderson as Secretary Pro Tem, and appointing the Finance Manager (or equivalent position) as Alternate, and rescinding Resolution No. 2001 -153. Motion passed by unanimous vote of the Board. Book 61— Page 218 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 12, 2012 4. REPORTS AND ANNOUNCEMENTS a. GENERAL MANAGER No reports. b. COUNSEL FOR THE DISTRICT No reports. c. SECRETARY OF THE DISTRICT No reports. d. BOARD MEMBERS Member McGill announced that he has been selected for nomination to the California Local Area Formation Commission (CALAFCO). 5. CAPITAL PROJECTS BOARD WORKSHOP a. OVERVIEW OF THE FISCAL YEAR 2012 -13 DRAFT CAPITAL IMPROVEMENT BUDGET AND DRAFT 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN Provisional Capital Projects Division Manager Andrew Antkowiak presented an overview of the planned Fiscal Year (FY) 2012 -13 Draft Capital Improvement Budget (CIB) and the proposed Draft Ten -Year Capital Improvement Plan (CIP) Mr. Antkowiak stated that estimated capital expenditures over the next ten years are $358 million. With approximately $3 billion in District assets, the estimated expenditures equate to renovating roughly one percent of the District's assets every year. At that rate, the District is essentially replacing its assets once every 100 years. He briefly reviewed the major capital projects envisioned over the next ten years, including $125 million for identified piping renovations and $20 million for identified capacity needs for the Collection System Program, and $70 million for nitrification and $20 million for remediation of contaminated soils for the Treatment Plant Program. Expenditures of approximately $10.2 million are anticipated for seismic improvements to District facilities. With regard to FY 2012 -13 capital expenditures, CIB recommendations total $32.3 million, which will require Board authorization of roughly $40.9 million in order to cover $8.6 million from previously authorized projects carried into the next fiscal year, as well as new projects. The recommended expenditures for the various programs are as follows: Book 61— Page 219 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 12, 2012 Program Treatment Plant Collection System General Improvements Recycled Water TOTAL Estimated FY 2012 -13 Program Expenditures $ 7.4 million 13.7 million 7.3 million 3.9 million $32.3 million In terms of cash flow, FY 2012 -13 revenues are anticipated to be $21.8 million, creating a $10.5 million variance. While any variance will be drawn from the Sewer Construction Fund reserves, Mr. Antkowiak noted that reduced staffing due to recent retirements is expected to lower next year's variance because staffing limitations will affect the District's ability to go forward with some of the planned capital projects in the next fiscal year. Treatment Plant Proaram Mr. Antkowiak said the $7.4 million Treatment Plant Program for FY 2012 -13 CIB includes expenditures for one -time renovations at the Treatment Plant, including $3 million for seismic retrofit work for the Pump and Blower Building ($4.5 million total project budget), $1 million for improvements to the primary sedimentation process ($10 million total project budget), and $815,000 for improvements to the outfall ($3.3 million total project budget). Recurring projects include $1.2 million in piping renovations and miscellaneous other projects totaling $1.4 million. Collection System Program Mr. Antkowiak presented a breakdown by project of the $13.7 Collection System Program for the coming fiscal year. Piping renovations in North Orinda, Walnut Creek and Lafayette in the amount of $7.3 million represent the largest component of the budget ($124.6 million total project budget over ten years). Another $2 million is allocated to cured -in -place pipe (CIPP) renovations ($2.2 million total project budget) and $1 million for ongoing TV inspections ($9 million total project budget). He noted that the CIPP renovation work will line certain large diameter pipes (18- to 42- inches) located at the Treatment Plant, near the Shell Oil Refinery in Martinez, and in the South Main /Lancaster area of Walnut Creek. The District's ongoing TV inspection program helps with scheduling pipe renovation projects by identifying problematic sewer lines. Mr. Antkowiak said the remaining portion of the $13.7 capital budget for the Collection System Program is comprised of $1.7 for expansion /capacity renovation, $1.3 million for pumping station upgrades, and $400,000 for miscellaneous projects. Book 61 — Page 220 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 12, 2012 General Improvements Program Mr. Antkowiak said the majority of the $7.2 million budgeted for the General Improvements Program for the coming fiscal year is dedicated to seismic improvements in the Headquarters Office Building (HOB) and at 4737 Imhoff Place ($4.5 million, with a total project budget of $6 million) in Martinez. Another $1.4 million has been budgeted for Information Technology, for which a separate presentation was planned. The remaining $1.3 million includes $0.5 million for vehicles and equipment with the balance going toward miscellaneous items. Mr. Antkowiak also explained how and why the HOB seismic retrofit work would be done. Recycled Water Program With regard to the Recycled Water Program, Mr. Antkowiak said that the Concord Landscape Irrigation Project, at $3.4 million ($4.1 million total project budget), represents the largest portion of the recycled water budget for FY 2012- 13. That project will add 2.5 miles of new reclaimed water pipe and more than 34 new customers, utilizing 200 acre -feet of reclaimed water per year. He noted that the District will be receiving a $1.1 million grant from the U.S. Bureau of Reclamation for this project. The remaining balance of the $3.9 million budget includes projects in Pleasant Hill and Martinez. Mr. Antkowiak said staff will be coming back to the Board in June to consider (1) adopting the proposed FY 2012 -13 CIB, which will mean authorizing $32.3 million to fund the capital program for next year, and (2) the Ten -Year CIP. He noted that the Board's role in the capital program is ongoing; existing authorization levels dictate that staff will continue to bring to the Board awards of construction projects over $100,000 as well as any construction change orders or consultant contracts in excess of that amount. In response to a question from Member Hockett regarding the logistics of relocating HOB staff during the renovations, Mr. Antkowiak said several options are being explored, including moving some staff into other buildings on the premises and supplementing with trailers and /or renting off -site office space. He said there are pros and cons to each option and staff is still evaluating this issue. The latest information from the County is that utilization of trailers in the Annex and 4737 rental property area would require permits and ADA compliance, which could make this option not feasible due to the lengthy permitting process and prohibitive costs of the ADA improvements. President Nejedly took exception to the County's requirements for ADA compliance, noting that many trailers on County projects are not ADA compliant. He and Member Menesini agreed that while tailoring staff on site may be more expensive than other options, it certainly would be less disruptive to staff. General Manager Ann Farrell said staff intends to review the logistical details of the move with the Capital Projects Committee in May to receive the Committee's input. Book 61 — Page 221 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 12, 2012 Member Williams noted that the FY 2012 -13 CIB and 2012 Ten -Year CIP that will be presented to the Board for approval in June 2012 are unaffordable on the proceeds of the two $30 sewer service charge rate increases passed by the Board last year. Given his concern that the District is facing significant future rate increases in FY 2013 -14 and beyond to deal with the unfunded actuarial accrued liability issue, he said he would support deferring any capital projects that do not support the District's core business. b. DISCUSSION OF INFORMATION TECHNOLOGY DEVELOPMENT PLAN Information Technology Administrator Roy Li gave a presentation using a mind - mapping collaborative software to illustrate the $1.4 million Information Technology Development Plan which he anticipates implementing over the next two years. Mr. Li said there are four main areas of focus: (1) communication, (2) process improvement/automation, (3) business continuity, and (4) customer service. Proposed communication projects include installing wireless access throughout the HOB, the Treatment Plant offices adjacent to HOB, and the Collection Systems Operation (CSO) facility in Walnut Creek. This will allow staff to communicate in whatever way best fits their situation. The plan is to also investigate the potential to provide field workers with wireless access to this same network of information to improve their interactions with customers and to facilitate the inspection process. The process imp rovement/automation area includes transitioning to a streamlined, paperless Board agenda packet that will enable Board Members and staff to receive the most current information in an electronic format that is easy to use and will save staff time as well as reproduction and delivery costs. He presented a brief video to illustrate how an agenda uploaded to an iPad device might appear and be utilized for taking notes, etc. With regard to business continuity, Mr. Li said the focus will be on server replication and data backup. Currently, the only backup is to a tape which is stored offsite. In the event of a disaster, the District will need servers, computers and network switches to hold and restore data. There are many options in this regard, one of which is to utilize the CSO facility in Walnut Creek as an emergency site in the event the HOB becomes unavailable. This would involve building an infrastructure, increasing the network pipeline between the HOB site and CSO, and adding virtual services and storage devices. There is also a possibility to sync the data between this site and CSO so that no matter what happens, the most current information will be available to continue operations. The business continuity project will span two years. With regard to improving customer service, Mr. Li said his staff is looking at a hardware monitoring system that will alert Information Technology staff when computer issues occur, rather than having to wait for end users to call and report problems. This will allow IT staff to be proactive rather than reactive. Finally, he said a help desk system will be implemented to allow IT staff to keep track of all recurring issues so they can be mitigated. Book 61— Page 222 None. None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 12, 2012 Mr. Li said he would be looking for direction from the Board with regard to the Board portal. With the Board Members' concurrence, he said he would work with the Capital Projects Committee to prioritize available features and select a vendor before bringing to the Board any proposal to move toward a paperless agenda packet. The Board Members concurred with this approach. 6. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 7. SUGGESTIONS FOR FUTURE AGENDA ITEMS 8. CLOSED SESSION The Board convened in closed session at 2:34 p.m. 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 Ann Farrell • Human Resources Manager Christopher Ko • Director of Collection System Operations Curtis Swanson Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS /CG) • Management Group The Board recessed at 4:39 p.m. to reconvene in open session. 9. REPORT OUT OF CLOSED SESSION The Board provided direction to the District Negotiators. Book 61— Page 223 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of April 12, 2012 10. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:40 p.m. Ja A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Donna M. Anderson Secretary Pro Tern Central Contra Costa Sanitary District County of Contra Costa, State of California Book 61— Page 224