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HomeMy WebLinkAbout03.a. Approve minutes of meeting held June 7, 2012MINUTES OF THE REGULAR MEETING 3.a OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 7, 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, June 7, 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 ABSTAIN: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. b. INTRODUCTIONS None. The Board welcomed back District retiree and Interim Director of Plant Operations Doug Craig. The Board also welcomed new employees, Thomas Brightbill, Senior Engineer in the Environmental Services Division, and Fernando Dominguez, Vehicle and Equipment Mechanic in the Collection System Operations Department. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. RECEIVE THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FROM THE GOVERNMENT FINANCE OFFICERS ASSOCIATION FOR THE DISTRICT'S COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2011. Provisional Finance Manager Thea Vassallo presented the District's twelfth consecutive Certificate of Achievement for Excellence in Financial Reporting to President Nejedly. Ms. Vassallo stated that the award is issued by the Government Finance Officers Association (GFOA) of the United States and Canada to government units and public employee retirement systems whose CAFRs achieve the highest standards in government accounting and financial reporting. The Board commended staff for their work in earning the award. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 4. CONSENT CALENDAR It was moved by Member Williams and seconded by Member Hockett 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: May 3, 2012 and May 15, 2012. b. Approve expenditures dated June 7, 2012. Reviewed by Budget and Finance Committee. C. Receive April 2012 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. d. Rescind public hearing previously set for June 7, 2012 at 2:00 p.m. to consider placing the following on the Contra Costa County tax roll for collection, and set July 19, 2012 at 2:00 p.m. as the new date and time for said public hearing: • Fiscal Year 2012 -13 Capacity Use Charges; • Fiscal Year 2012 -13 Assessments for Contractual Assessment Districts and Alhambra Valley Assessment Districts; and • Fiscal Year 2012 -13 Assessments for Fee Installment Payment Programs. e. Adopt Resolution 2012 -038 accepting grants of easement from Richard F. and Joanne Lande, Richard A. and Christine T. Wolfe, Stephen W. and Catherine L. Lambert, Alicia Romero and Rene Langis, Alexander K. and Elvera M. Majewski, Richard W. and Rose F. Jang, Aleen Myers, George Sarkis, David and Helen Carman, Amer Adel and Anna E. Budayr, Anthony J. and Frances P. Bowles, and Willie Jr., and Evelyn M. Yee, property owners at 110 Moraga Way, 112 Moraga Way, 116 Moraga Way, 120 Moraga Way, 128 Moraga Way, 95 Camino Encinas, 136 Moraga Way, 179 Moraga Way, 181 Moraga Way, 183 Moraga Way, 21 Monte Veda Drive, and 32 Knickerbocker Lane, Orinda, respectively (South Orinda Sewer Renovations, Phase 5, District Project 5989 — Parcels 5 -8, 10 -12, 16 -18, 21 and 22), and authorizing staff to record documents with the Contra Costa County Recorder. Authorize Member McGill's attendance at California Special Districts Association (CSDA) Annual Conference to be held September 24 -27, 2012 in San Diego. g. Authorize extension of medical leave of absence without pay for Administrative Assistant Alma Hachey through September 30, 2012. h. Authorize the General Manager to renew insurance coverage for Fiscal Year 2012 -13 for excess liability, property, and Workers' Compensation, and bind coverage for pollution (Household Hazardous Waste) liability. Reviewed by Budget and Finance Committee. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 Adopt Resolution 2012 -039 calling for a November 6, 2012 election, requesting consolidation of the election of the District Board Members with the statewide general election, and setting forth District regulations for Candidate Statements. 5. PUBLIC HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER THE FOLLOWING MATTERS: ADOPTING THE FISCAL YEAR 2012 -13 CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2012 -13 DISTRICT BUDGET; APPROVING THE 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN; AND MAKING THE FINDING THAT THE DOCUMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). Provisional Capital Projects Division Manager Andrew Antkowiak presented an overview of the 2012 -13 Capital Improvement Budget and $358 million Ten -Year Plan funding various Treatment Plant, Collection System and General Improvement, and Recycled Water projects. He stated that the estimated required allocation is $29,601,000, with an estimated carryover of $11,349,000 from Fiscal Year 2011 -12, for a total proposed authorization of $40,950,000 to fund an estimated $32,343,000 in Fiscal Year 2012 -13 expenditures. The public hearing was opened and closed without comment. Member Williams requested that the Recycled Water Program be considered separately. It was moved by President Nejedly and seconded by Member Hockett to take the following actions, with the exclusion of the Recycled Water Program: adopt the Fiscal Year 2012 -13 Capital Improvement Budget for inclusion in the Fiscal Year 2012 -13 District Budget; approve the 2012 Ten -Year Capital Improvement Plan; and make the finding that these documents are exempt from CEQA. Motion passed by unanimous vote of the Board. It was moved by Member McGill and seconded by President Nejedly to approve the Recycled Water Program. Motion passed by the following vote of the Board: AYES: Members: Hockett, Menesini, McGill, Nejedly NOES: Members: Williams ABSTAIN: Members: None Member Williams stated that he was not against recycling water but was of the opinion that recycled water is a demand - reduction initiative under the purview of water districts (East Bay Municipal Utility District (EBMUD) and Contra Costa Water District (CCWD)), under the California Urban Water Management Act. He explained that EBMUD charges ratepayers to fund its recycled water program, and, because Central Contra Costa Sanitary District (CCCSD) also has a recycled water program, those ratepayers are double paying. In addition, there are people who are essentially subsidizing ratepayers CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 of CCWD in Antioch and Pittsburg: CCWD ratepayers who are funding the CCCSD recycled water program and Contra Costa residents who do not pay for recycled water, since CCWD does not have a recycled water program. He highlighted specifically the $3.93 million recycled water expenditure in the budget, noting the current tight financial times, with the possibility of more rate increases in the future due to unfunded pension liability. He concluded that, although he supports recycled water, he did not believe it to be in the best interest of CCCSD's ratepayers to go forward with the Recycled Water Program of the Capital Program. b. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTION OF THE FOLLOWING BUDGETS FOR FISCAL YEAR 2012 -13: OPERATIONS AND MAINTENANCE BUDGET: DEBT SERVICE FUND BUDGET; AND SELF - INSURANCE FUND BUDGET. Provisional Finance Manager Thea Vassallo presented an overview of the three budgets. She stated that O &M 2011 -12 expenses are expected to be under budget by $2,647,000, mainly due to labor and benefit savings from retirements and lowered usage or better pricing of chemicals and utilities. She added that $5,567,000 in Debt Service revenue is expected for 2012 -13. Total budgeted ad valorem tax is $12.9 million, of which $5.3 million is allocated to the Debt Service Fund. Self- Insurance revenues are budgeted at $900,000 with expenses of $1.1 million. Reserves of the Self Insurance Fund are projected to be $4,579,000 at the end of the 2012 -13 fiscal year. The public hearing was opened and closed without comment. It was moved by Member McGill and seconded by Member Williams to approve and adopt the Fiscal Year 2012 -13 Operations and Maintenance Budget, Debt Service Fund Budget and Self- Insurance Fund Budget. Motion passed by unanimous vote of the Board. C. CONDUCT A PUBLIC HEARING TO CONSIDER APPROVAL OF THE SMITH ROAD CONTRACTUAL ASSESSMENT DISTRICT (CAD) NO. 2012 -1 IN ALAMO, DISTRICT PROJECT 5773: ADOPT RESOLUTION 2012 -040 CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 (PROPOSITION 218); ADOPT RESOLUTION 2012 -041 APPROVING THE ENGINEER'S REPORT AND ASSESSMENTS, ORDERING IMPROVEMENT, AND FINDING THE PROJECT EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH THE SMITH ROAD CAD NO. 2012 -1 PARTICIPANTS. Engineering Assistant III Russ Leavitt stated that the proposed Smith Road CAD has an estimated project cost of $121,000, with an estimated cost per property of $23,000. The CAD meets the formation criteria with 7 benefiting properties, 100 percent of the properties developed, and 1 dwelling on each property. He stated staff's recommendation to use the Sewer Construction Fund to finance the project, which, with an annual interest rate of 6 percent, will generate an estimated $97,000 in interest if all assessments are financed over 10 years. He noted that there was 100 percent participation in the Proposition 218 ballot, and all votes were affirmative. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 The public hearing was opened and closed without comment. It was moved by Member Hockett and seconded by Member McGill to approve Smith Road CAD No. 2012 -1, District Project 5773; adopt Resolution 2012 -040 and Resolution 2012 -041 as presented; and authorize the General Manager to execute an agreement with CAD participants. Motion passed by unanimous vote of the Board. d. CONDUCT A PUBLIC HEARING TO CONSIDER RE- APPROVAL OF THE ST. MARY'S ROAD CAD NO. 2011 -1 IN LAFAYETTE, DISTRICT PROJECT 6513; ADOPT RESOLUTION 2012 -042 CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 (PROPOSITION 218); ADOPT RESOLUTION 2012 -043 APPROVING THE ENGINEER'S REPORT AND ASSESSMENTS, ORDERING IMPROVEMENT, AND FINDING THE PROJECT EXEMPT FROM (CEQA); AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH THE ST. MARY'S ROAD CAD NO. 2011 -1 PARTICIPANTS. Engineering Assistant III Russ Leavitt stated that, in mid -April 2012, a revised Engineer's Report incorporating the Board- modified CAD boundaries was distributed for public review. He stated staff's recommendation to use the Sewer Construction Fund to finance the project, which, with an annual interest rate of 6 percent, will generate an estimated $87,000 in interest if all private assessments are financed over 10 years. Two participants have agreed to pay an additional 0.75 reimbursable share each; the City of Lafayette has budgeted to pay for 2 additional reimbursable shares; and the District will cover 3.5 reimbursable shares. Given the restrictions on how certain funds in the Sewer Construction Fund may be spent, Member Williams requested information on the detail and frequency with which the allocation of the funds are tracked. The public hearing was opened and closed without comment. It was moved by President Nejedly and seconded by Member Hockett to re- approve the St. Mary's Road CAD No. 2011 -1 In Lafayette, District Project 6513; adopt Resolution 2012 -042 confirming compliance with California Constitution, Article XIIID, Section 4 (Proposition 218); adopt Resolution 2012 -043 approving the Engineer's Report and assessments, ordering improvement, and finding the project exempt from (CEQA); and authorize the General Manager to execute an agreement with the St. Mary's Road CAD No. 2011 -1 participants. Motion passed by unanimous vote of the Board. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 8.a. was taken out of order to accommodate the speakers present on the subject, and the related Item 5.d. was taken out of order and considered directly after 8.a. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 7. REPORTS a. GENERAL MANAGER 1) Update on permit counter and connection fee collection matters Senior Engineer Tom Godsey presented the regular update. He described a SunGard software glitch that was discovered, which creates additional fees for commercial applications when users review the fees in selected views. This can only be corrected by SunGard, with 37 corrected so far for a total value of $161.49. Mr. Godsey listed the progress of the audit as follows: 1,762 applications worth $21.4 million with fees entered, 1,309 applications worth $16.8 million with no fees owed; 272 applications worth $2.4 million with possible fees owed, pending research and a field check; and 181 applications worth $2.2 million yet to be reviewed. 2) Announcements The following written announcements were included with the agenda packet: a) Pre - treatment Compliance Audit (PCA) Report and Response b) City of Walnut Creek Reentering the Clean Water Program Service Agreement c) Recent Personnel Advancements — Maintenance Crew Leaders Don Comstock and Les Szmidt d) Recent Staff Retirements — Maintenance Crew Member II David Quintero e) Equipment Theft at Collection System Operations (CSO) Walnut Creek Facility There were no additional written announcements made at the meeting. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm stated that, during the May 3, 2012 Board meeting closed session, the Board delegated authority to settle a claim from Mr. J. Ernie Guerrero for an overflow that occurred at his place of business in Martinez on February 17, 2011. The District will pay $40,769.90 to Mr. Guerrero, who will, in turn, sign a full settlement release including a detailed business owner's acknowledgment with regard to the property owners' responsibility of maintaining the private sewer lateral and a device protecting against backflow. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced that a meeting of the Recycled Water Committee has been scheduled for June 14, 2012, and the agenda packet is at the Board Members' places. 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 May 29 and June 4, 2012 Budget and Finance Committee meetings and summarized the Action Summaries. Member McGill also reported on the June 6, 2012 Contra Costa Council Annual Installation Dinner in Pleasant Hill. 2) Announcements Member McGill submitted a written report covering Announcements. 8. ENGINEERING a. CONSIDER REQUEST FOR RECONSIDERATION OF THE MAY 17, 2012 BOARD ACTION GRANTING CONTRACTUAL ASSESSMENT DISTRICT (CAD) FINANCING POLICY EXCEPTIONS: General Manager Ann Farrell stated that some property owners in the El Toyonal area have requested that the Board reconsider its May 17, 2012 approval of the CAD Policy exception to pay for non- participants. Their reasons for doing so included the following: (1) the exception will inappropriately subsidize a few property owners who are capable of financing the public sewer via the traditional CAD process and defraying the non- participants' costs themselves; (2) notice to the affected community was insufficient; (3) the Position Paper did not accurately portray the amount of opposition to the project, which includes many owners of developed properties; and (4) the CAD program was designed to assist developed properties in switching from septic tanks and onto sewers, not to facilitate the development of undeveloped properties. Ms. Farrell noted that, in the past, staff did not make a recommendation regarding the potential CAD; however, staff now recommends the Board reconsider its approval of the CAD Policy exceptions and calendar reconsideration for the June 21, 2012 Board meeting. The recommendation was based on the following: (1) the potential CAD does not meet the criterion of at least 60 percent of tributary properties with existing homes on septic tanks; (2) subsidizing the development of properties by paying non- u CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 participants' shares, as the exceptions may be interpreted, may not be in the District's best interest; and (3) 57 percent of the properties are developed, and only 49 percent have expressed interest. Therefore, under the criteria of a traditional CAD, which requires 51 percent approval of tributary properties, it is possible the project would not proceed. Ms. Louise Benvenue asked that the Board's May 17th decision be reconsidered and reversed because it was made on what she deemed to be false assertions of the threat of septic tanks to human health. She referred the Board to documents she distributed, including an EBMUD report supporting her claim that septic tanks are not a source of pollution in the area. She also pointed to a survey she conducted, showing little support from resident homeowners. She opined that the real threat to public health is aging sewer pipes and suggested the Board direct its funds toward fixing existing infrastructure. She added that she was confident that the project supporters can use low borrowing costs to finance the CAD themselves. Mr. Michael Bowen stated that Ms. Benvenue covered his concerns well and relayed a conversation he had with EBMUD staff, indicating that they believed septic systems to be a non - issue, particularly in the El Toyonal area. Mr. Bowen added that there seemed to be more concern with human interface issues, such as fire risk. He provided materials to the Board. Mr. Mirek Olmer, a licensed civil engineer, cautioned the Board against building a sewer in an area subject to slides. He advised that, wherever there is risk, there should be risk assessment and noted that there are significant costs attached to the project. Mr. Tony Sgro encouraged the Board to reconsider and reverse its May 17th decision. He submitted topography photos, describing narrow roads and dry creeks that swell and flood, to explain how the area is different from Alhambra Valley, where a previous contractual assessment district exception was approved by the Board. He stated his fear that increased density and high -speed traffic from a sewer line and subsequent development could potentially bring danger to the area. Ms. Lucy Henderson stated that she was against the District subsidizing the sewer, and, as a senior citizen, she would have no ability to pay for a sewer extension or face the pressure to get rid of her septic tank. Mr. John Bowen stated that he was in favor of reconsidering and reversing the Board's May 17th decision, based on his reasoning that the proposed site of the CAD is a known slide area, with rainfall that can damage both homes and sewer lines. Mr. Adeeb Karam asked the Board not to reconsider its May 17th decision and grant him, a taxpayer in the area, the same right to a house as the area's current residents. He stated that the smell of septic tanks is detectable in a rainstorm and shared experiences in which his land, as a vacant lot, seemed to be misused as open space. He stated that the area residents want to keep their area undeveloped, but the open space is his land, and he wishes to build on it. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 Mr. Robert Marino commended the Board's May 17th decision as heroic and historic. He recognized that the residents want to keep their open space but noted that he pays taxes in the area and should be afforded the same rights as those who already live there, describing the matter as one of rights and fairness. He suggested that, if the residents are concerned with accessibility for emergency services, they make the roads wider. Mr. Marino also echoed Mr. Karam's claim that the smell of septic tanks is detectable in wet weather. Ms. Ksenija Olmer referred to her handout supporting the reconsideration and reversal of the Board's May 17th decision. She cited fire safety concerns, lack of evacuation routes, and the opinion of Moraga - Orinda Fire District Assistant Fire Marshall Kathy Leonard that increased development could endanger the residents and firefighters, as a result of lowered water resources. She also presented a map indicating that there were more against than for the project in a survey she conducted, and she submitted a petition with 48 signatures against the CAD. She claimed that the Board was initially misinformed of the amount of support for the project, stating that many lot owners are against it. She also maintained that elderly citizens in the area made their initial expression of support with a misunderstanding of the facts and costs. Mrs. Jill Cohn, owner of property in the area, stated that she has been waiting a long time to build her home. She shared experiences where her land, as a vacant lot, seemed to be misused as open space and asked that the Board uphold its original decision. Mr. Russell Cohn recalled that many of the project opponents cited the area's frequent slides in their arguments and commented that slides in general are not good for septic tanks. He stated that the open lots enjoyed by the area's residents belong to people who want to build homes. He cited the County's moratorium on septic tanks as evidence of the inherent dangers of septic tanks, and stated that fire and slide issues are outside the purview of the District Board. He concluded by saying, because of the moratorium, he could not think of an area more in need of sewer extension. Ms. Diane Anderson commended the Board's May 17th decision and stated her opinion that the Board has not been presented any new information relevant to sewer development or compelling them to reconsider. Therefore, she asked the Board to not reconsider and to adhere to its original decision. Mr. Tom Lavin stated that he has owned two lots off Dos Osos since 1981, and, in 1983, he sponsored the Environmental Impact Report which addresses some of the concerns of the opposition to the potential CAD. He clarified that, like fellow supporters of the project, he is not a developer, and his only intent is to build a home for his family. He applauded the Board's May 17th decision to pay the non participants' costs and listed possible benefits of a sewer extension to the area's residents, such as increased land values, having neighbors, the ability to expand existing homes. Mr. Brian Wieber stated that he was in favor of the El Toyonal CAD and thanked the Board for its May 17th decision to pay the non participants' costs. He stated that installing a sewer will benefit every property owner and eliminate the septic problem, CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 which, he noted, causes a smell in wet weather. He characterized the reasons given by those opposing the CAD to be red herrings, stating that the opponents simply do not want development. He added his belief that any resulting development would be moderate. Member McGill stated his conviction that sewers are good and septics are bad. He noted that adequate facilities and development should occur within urban growth boundaries, and properties in urban areas should not be on septic systems. He stated that, while septic system owners probably do not wish to be regulated, perhaps they should be. He stated that he was not in favor of reconsidering the matter and instead was in favor of moving forward with paying the non participants' costs if a CAD is formed. Member Hockett stated that she agreed with Member McGill's support of the CAD; however, her only hesitancy was with the funding of the non participants. She stated that, in hindsight, she had an opportunity to receive more and better information since the Board's May 17th vote. She described the conflict she faced between spending ratepayers' dollars and being sympathetic to the CAD's proponents who want the sewer but cannot afford to pay for it. She summarized that she fully supported sewers and funding them, but struggled with how much money to provide and what would be fair to the District's ratepayers. Member Williams noted that many of the public comments were regarding matters under other agencies' jurisdictions. He clarified that the Board's responsibility is sewers. He added his opinion that, in most situations, sewers are better than septic tanks, but there are places for septic tanks. He described the CAD Policy as an enlightened way for the District to complete its mission with little or no risk to ratepayers' money. He stated that he fully supported CADs, but, with the potential El Toyonal CAD, he has had concerns with making an exception to the CAD policy and paying the non participants' costs, given the tight financial times and the need to disburse ratepayers' money to finance those costs. He concluded that he was in favor of reconsideration. Member Menesini stated that he would reluctantly like to take another look, after being awakened to new ideas from the public comments. President Nejedly stated that he made his decision and intended to stick to it, but he would vote to relook at the matter because of his prior vote. He stated that it was unfortunate that people hold ransom the lots of those who want to build their homes and commented that all of the area's residents have been on the other side of the matter, when they built their homes in someone else's open space. He stated that, if residents want to keep their open space, he would advise buying the lots. He reasoned that the District's money is covering too many non participants, but if there were fewer non participants, financing those shares would be justifiable to relieve the area of septic tanks for the greater good. He predicted that, eventually, sewers will be installed and septic systems will fail. He stated that it would be better if people could work together and collect enough votes to form the CAD in the right way at the right time. 10 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 It was moved by Member Williams and seconded by Member Menesini to direct staff to calendar reconsideration of CAD Policy exceptions for a potential El Toyonal CAD approved on May 17, 2012 for the June 21, 2012 regular meeting and notify the interested parties that the matter will be reconsidered. Motion passed by the following vote of the Board: AYES: Members: Hockett, Menesini, Williams, Nejedly NOES: Members: McGill ABSTAIN: Members: None With regard to the St. Mary's CAD in Lafayette, General Manager Ann Farrell explained that staff does not recommend reconsidering the CAD Policy exceptions because (1) the project meets all CAD Policy criteria; (2) project proponents and the Lafayette City Council have agreed to partner in paying non - participants' costs; and (3) 92 percent of the properties are developed, with 9 of 10 having submitted Proposition 218 ballots approving the project. The Board did not elect to reconsider CAD Policy exceptions granted on May 17, 2012 for the St. Mary's Road CAD. b. AUTHORIZE THE GENERAL MANAGER TO AMEND THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH HDR ENGINEERING. INC. IN THE AMOUNT OF $180,000, INCREASING THE COST CEILING BY $640,000 FOR A NEW CONTRACT CEILING OF $820.000. FOR DESIGN OF THE PRIMARY TREATMENT RENOVATIONS, DISTRICT PROJECT 7285. General Manager Ann Farrell stated that the amendment is to include detailed design of the project, which has been discussed with the Capital Projects Committee. The tanks to be renovated were built in the 1960s and 1970s, and the total construction cost was estimated at $10 million. It was moved by Member Hockett and seconded by Member McGill to authorize the General Manager to amend the existing professional services agreement with HDR Engineering, Inc. for a new contract ceiling of $820,000 for design of the Primary Treatment Renovations, District Project 7285. Motion passed by unanimous vote of the Board. 9. TREATMENT PLANT a. ADOPT RESOLUTION 2012 -044 MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO ENTER INTO AGREEMENTS WITH THIRD PARTIES TO ALLOW FOR THE DESIGN AND REPAIR OF THE COGENERATION UNIT IN AMOUNTS TOTALING UP TO APPROXIMATELY $300.000. WITHOUT THE SOLICITATION OF COMPETITIVE BIDS. Senior Engineer Craig Mizutani presented an update on the restoration of the cogeneration system. He reported that the third party investigation contract with Exponent was suspended, and the investigation is being continued by the District's `si CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 insurance company's technical expert, Engineering Design and Testing. Valve testing at Solar Turbines has been completed, and a study of the control logic of the turbine system is being continued by District staff. The equipment needing repairs included the diverter valve, expansion joints, fuel system, exhaust bellows and enclosure of the cogeneration unit. The cogeneration outlet and economizer ductwork have been removed, and the effox diverter valve repair work has been completed. The Board deferred voting on this item until reconvening in open session after closed session, at which point it was moved by Member Williams and seconded by President Nejedly to adopt Resolution 2012 -044 authorizing the General Manager to enter into agreements with third parties to allow for the design and repair of the cogeneration unit in amounts totaling up to approximately $300,000, without the solicitation of competitive bids. Motion passed by unanimous vote of the Board. None. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 11. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member McGill noted that the Board has not formally adopted a parliamentary procedure. He stated that, after more information is gathered and presented to the Board, he would like the Board to consider moving forward in adopting one. 12. CLOSED SESSION The Board recessed at 4:07 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. • 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. b. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION — INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C) - ONE POTENTIAL CASE The Board recessed'at 4:40 p.m. to reconvene in the Board Room in open session 12 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 7, 2012 12. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that no reportable action was taken in closed session. 13. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:41 p.m. N!rA 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 13