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HomeMy WebLinkAbout03.a. Approve minutes of 9-6-12 Board Meeting3.a.. MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 6, 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, September 6, 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 The Board welcomed the following new employees: Human Resources Manager Teji O'Malley; Assistant Land Surveyor Gregory St. John; Maintenance Technician III, Mechanical, Paul Serrato; Utility Worker at Collection System Operations Scott Swan; and Plant Operator I Bret Greenwald. 2. PUBLIC COMMENTS Representing the Pleasant Hill Martinez Soccer Association ( PHMSA), Mr. Frank Gorham reiterated his organization's interest in leasing or using 6 to 10 acres of the Kiewit parcel (APN 159- 140 -051) as a youth athletic field. He described PHMSA as a 30 year old, non- profit organization bringing soccer to 2,100 local children, with a mission to provide world class youth soccer in a fun, family - filled environment. He stated that land opportunities are scarce and he was advised by District staff to present his request to the Board. President Nejedly suggested the matter be considered by the Real Estate Committee. 3. AWARDS AND COMMENDATIONS a. ADOPT RESOLUTIONS 2012 -057 THROUGH 2012 -072 RECOGNIZING 2012 SERVICE AWARD RECIPIENTS. General Manager Ann Farrell stated that the proposed resolutions recognize the service of 48 employees who have been at the District for 5 to 25 years, at milestones of every 5 years. They would also recognize the service of Board Members Hockett and Menesini, at CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 20 years each. The resolutions will be part of the program for the October 24, 2012 Service Awards Luncheon in the Multi- Purpose Room, to which the Board has received invitations. It was moved by Member Hockett and seconded by Member McGill to adopt Resolutions 2012 -057 through 2012 -072 recognizing the 2012 Service Award recipients. Motion passed by unanimous vote of the Board. b. RECEIVE THE NATIONAL ASSOCIATION OF CLEAN WATER AGENCIES (NACWA) PLATINUM 14 PEAK PERFORMANCE AWARD. Plant Operations Division Manager Ba Than stated that, in 2011, Plant Operations processed a flow of 14.8 billion gallons, produced 3,600 tons of ash, conducted 36,000 laboratory analyses, and had a 100 percent compliance record. Mr. Than explained that, for an agency to earn a Platinum 14 Award as the District has done, it must have zero violations over a consecutive fourteen -year period. Mr. Than thanked the Board for its direction and support and Plant Operations staff for maintaining and operating the facility. 4. CONSENT CALENDAR a. Approve minutes of Board meetings held on the following dates: July 19, 2012; August 2, 2012; and August 6, 2012. b. Approve expenditures dated September 6, 2012. Reviewed by Budget and Finance Committee. C. Adopt Resolution 2012 -073 establishing the Sewer Construction Fund and Debt Service Fund appropriations limit in the amount of $83,942,039 for Fiscal Year 2012- 13, in accordance with Article XIII B of the California Constitution and select the change in the California per capita personal income percentage for use in computing the appropriations limit. d. Approve the Statement of Investment Policy for District assets and the Investment Guidelines Document for the Government Accounting Standards Board (GASB) 45 Trust. Reviewed by Budget and Finance Committee. e. Authorize extension of medical leave of absence without pay for Senior Plant Operator Gordon Trapp through November 17, 2012. Adopt Resolution 2012 -074 accepting a grant of easement from Hedayat Rasti and Mitra Rasti (District Project 8401 — Parcel 6), owners of the property located at 1202 Mountain View Boulevard in Walnut Creek (APN 180 - 131 -001); and authorize staff to record documents with the Contra Costa County Recorder. g. Adopt Resolution 2012 -075 authorizing the execution of quitclaim deeds for abandoned sewer easements to Chicago Inland Empire, LLC, a California limited liability company, property owner of 2770 North Main Street in Walnut Creek CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 (APN 171- 070 -041); and authorize staff to record documents with the Contra Costa County Recorder. h. Set September 20, 2012 at 2:00 p.m. as the date and time for a public hearing to receive comments on increasing the construction contract retention amount to 10 percent for the Seismic Improvements for the Headquarters Office Building, District Project 8226, in accordance with Public Contract Code Section 7201. Set October 4, 2012 at 2:00 p.m. as the date and time for a public hearing to receive comments on proposed reimbursement fees for the properties which could directly connect to Job 6413 (Alhambra Valley Road) in unincorporated Martinez. j. Authorize the General Manager to execute a contract with West Coast Locators, Inc. to provide Underground Utility Locating Services, District Project 039700ENG, on an as- needed basis for a one -year period, with an optional extension for two additional one -year periods, in the amount of $110,000 per year; find that the project is exempt from California Environmental Quality Act (CEQA); and authorize the General Manager to execute the contract documents subject to submittal requirements. k. Adopt Resolution 2012 -076 authorizing the General Manager to execute certificates of unpaid charges on properties when delinquent charges are owed; and authorizing staff to record with the Contra Costa County Recorder (1) all such certificates of unpaid charges, and (2) releases of such certificates upon receipt of payment. Reviewed by Budget and Finance Committee. Adopt Fair Political Practices Commission (FPPC) Form 806, "Agency Report of Public Official Appointments," listing all appointments for which compensation is received and which were appointed by the Board, and directing the Secretary of the District to post and maintain the Form 806 on the District's website. M. Confirm publication of a summary of District Ordinance No. 273 establishing reimbursement fees for the properties which could directly connect to Job 6499 (Vista Del Orinda Contractual Assessment District (CAD)) in Orinda in accordance with District Code Chapter 6.20 (Reimbursement Fees) and the District's CAD Policy. It was moved by Member McGill and seconded by Member Menesini to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 7.b. was taken out of order to accommodate a member of the public who was present to speak on the item. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 6. REPORTS a. GENERAL MANAGER 1) Update on repair of Cogeneration System. Senior Engineer Craig Mizutani stated that the District's insurance company's technical consultant, Engineering Design and Testing (ED &T), found the main reason for the March 29, 2012 explosion to be uncombusted or partially - combusted fuel in the turbine exhaust system. In preparation for the anticipated startup date of September 24, 2012, ED &T has found that mechanical issues have all been addressed and suspect components replaced, controls issues such as the startup algorithm and purge sequence have been or are being reviewed, and the right team is working on rebuild and recommission. Repairs are complete, critical path parts are being awaited, and Solar Turbine is continuing its work. The insurance will cover equipment rebuild costs, less the $250,000 deductible. Per ED &T, the insurance can allow 100 percent reimbursement of additional power costs if the current schedule is held, and ED &T is working on additional cost verification. District Counsel Kent Alm added that there will likely be a subrogation claim from the insurance company against the party determined to be at fault. The District could withstand its losses, join the claim, or bring a separate action for the $250,000 deductible, plus other expenditures of about $160,000 and possibly more. 2) Announcements The following written announcements were included with the agenda packet: a) Recent Promotion — Kimberly Stahl to Development Services Supervisor in the Environmental Services Division. Recent Retirement — Associate Control Systems Engineer Bill McEachen on August 16, 2012, after 22 years of service. b) Recent Personnel Advancements — Robert Maroon to Senior Plant Operator, and Jolene Bertera to Engineering Assistant II. c) Purchasing and Materials Services Division Receives Achievement of Excellence in Procurement Award d) Comments from Readers on the Summer Issue of Pipeline CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 e) Public Bidding on Television Inspection of Sanitary Sewers, District Project 039680ENG f) Pretreatment Enforcement Action— St. Mary's College The following additional announcements were distributed at the meeting: g) Non -Injury Incident — Outfall Improvements Project (Phase 6) b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm reported that the Board had previously authorized an amount of $150,000 for joint repair of a landslide threatening a District sewer and improvements at 154 and 158 La Espiral in Orinda. Because 158 La Espiral is in foreclosure, it is unclear if it will be possible to exact a 25 percent contribution from that property. If not, the District cost of the repair may exceed $150,000 by approximately $15,000, to pay that property owner's share. Staff indicated at the August 13, 2012 Budget and Finance Committee meeting that it needed to proceed with the repair in order to complete stabilization of the sewer before the wet weather season. At that time, the Committee had no objection. The Board concurred with staff proceeding with the repair and received Counsel's report with no comment. C. SECRETARY OF THE DISTRICT None. 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 August 8 -11, 2012 California Association of Sanitation Agencies (CASA) Annual Conference and Executive Board Meeting. The Board received the report without comment. Member McGill Member McGill reported on the August 2, 2012 Contra Costa County Mayors' Conference hosted by the City of Orinda (Speaker: Bob Gleeson of the Public Policy Institute of California) and the August 8 -11, 2012 CASA Annual Conference in Monterey. He noted that Member Hockett received a special commendation award for her service to CASA and the Operator Training Program Bay Area Consortium for Water & Wastewater Education (BACWWE). The Board received the report without comment. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 Member McGill and Member Hockett reported on the August 16, 2012 Capital Projects Committee meeting and summarized the Action Summary. The Board received the report without comment. Member McGill and President Nejedly reported on the August 13, 2012 and September 4, 2012 Budget and Finance Committee meetings and summarized the Action Summaries. The Board received the report without comment. Member Menesini 44M i Member Menesini and Member Williams reported on the August 30, 2012 Outreach Committee meeting and summarized the Action Summary. Member Williams clarified that he was concerned with the rationale and consistency of the message associated with the Pipeline topic recommending that pet waste not be disposed in the sanitary sewer, not its scientific validity. He noted that human feces can contain parasites, as pet feces do, so the District should look into why it is not recommending the same approach toward both. The Board received the report without comment. Member Williams Member Williams reported on the August 2, 2012 Contra Costa County Mayors' Conference hosted by the City of Orinda (Speaker: Bob Gleeson of the Public Policy Institute of California). The Board received the report without comment. 2) Consider creation of an Ad Hoc Committee to review the provision of legal services to the District General Manager Ann Farrell stated that, at it its July 23, 2012 meeting, the Human Resources Committee recommended that the Board create and appoint two Board Members to an Ad Hoc Committee to review the provision of legal services to the District. She stated that, since the contract with Hanson Bridgett does not expire until the end of December 2012, staff will present a Position Paper at a future Board meeting to extend the contract with Meyers Nave to the same date. Both contracts could then be considered in tandem, as timing permits. As Chair of the Human Resources Committee, Member Hockett recommended that a member of the Human Resources Committee serve on the Ad Hoc Committee and nominated Human Resources Committee Member Williams for the position. She also nominated President Nejedly. It was moved by Member Hockett and seconded by Member McGill to establish an Ad Hoc Legal Services Committee to review legal services contracts and determine the legal services needs of the District and to appoint CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 Member Williams and President Nejedly to serve on the Committee. Motion passed by unanimous vote of the Board. 3) Announcements Member McGill submitted a written report covering Announcements. 7. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT IN THE AMOUNT OF $70,000 WITH CAROLLO ENGINEERS, INC., INCREASING THE CONTRACT AMOUNT BY $290,000 FOR A NEW CONTRACT CEILING OF $360,000, FOR ALTERNATIVE TREATMENT TECHNOLOGIES TO REMOVE AMMONIA FROM THE DISTRICT'S TREATMENT PLANT DISCHARGE PURSUANT TO TREATMENT PLANT PLANNING, DISTRICT PROJECT 7301; AND FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Senior Engineer Michael Penny stated that the District's 2012 National Pollutant Discharge Elimination System (NPDES) Permit Supplement requires the District to submit an Ammonia Removal Facility Plan to the San Francisco Regional Water Quality Control Board (RWQCB) by February 28, 2014. A work plan was submitted to the RWQCB on June 29, 2012 which includes evaluating the existing plant to determine if there are relatively inexpensive ways to modify the plant to improve the ammonia removal performance. Carollo Engineers, Inc. has been selected to assist with this effort. It was moved by Member Menesini and seconded by Member McGill to authorize the General Manager to execute an amendment to an existing professional engineering services agreement in the amount of $70,000 with Carollo Engineers, Inc., increasing the contract amount by $290,000 for a new contract ceiling of $360,000, for Treatment Plant Planning, District Project 7301; and find that the project is exempt from CEQA. Motion passed by unanimous vote of the Board. b. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A MEMORANDUM OF AGREEMENT FOR INSTALLMENT PAYMENT OF CAPACITY FEES; AND /OR AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CAPACITY USE AGREEMENT FOR PIZZA MY WAY AT 1300 CONTRA COSTA BOULEVARD IN PLEASANT HILL FOR A TERM OF LESS THAN FIFTEEN YEARS. Mr. Tareq Mashal, part owner of the Pizza My Way business, stated that the District's $15,000 capacity fee was problematic to his family business, and that the property owner (Mr. Mashal is a tenant) would not agree to the District's 15 -year payment program terms. He explained that the fee would delay his project by 2 months, or he would have to get a high- interest loan. He noted that his whole budget is $90,000 and proposed an installment payment plan to spread the capacity fee payment over 7 years instead of 15, offering to pay 1 to 2 years ahead. He CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 stated that he wanted to help the economy, open restaurants, and hire employees; however, if he and his partner had known of the fee, they would not have considered investing in Contra Costa County. Engineering Assistant III Earlene Millier described Mr. Mashal's proposed installment payment plan of about $200 a month. At a 6 percent interest rate, the loan would be paid off in 8 years. At $290 a month, it would be paid off in 5 years. She stated that the proposed plan would entail extra administrative work and an unsecured loan. Typically, in this situation, the District would enter into a capacity use agreement with the property owner, which would be a secured loan as the charge would be placed on the tax roll. The property owner was reluctant to sign a 15 -year agreement. Staff noted that the capacity use approach is more protective of the District because it is a secured loan. In view of the fact that the property owner is not cooperating, it was moved by President Nejedly and seconded by Member McGill to authorize the General Manager to execute a memorandum of agreement with the restaurant owner for installment payment of capacity fees for Pizza My Way at 1300 Contra Costa Boulevard in Pleasant Hill for a term of less than 15 years. Motion passed by unanimous vote of the Board. 8. BUDGET AND FINANCE a. RECEIVE ADJUSTED PERIOD 13 OPERATIONS AND MAINTENANCE (O &M) JUNE 2012 YEAR -END FINANCIAL STATEMENTS AND INVESTMENT REPORTS (PERIOD 13). The Budget and Finance Committee reviewed this matter at its September 4, 2012 meeting. Finance Manager Thea Vassallo reported that, as of June 30, 2012, the District had a favorable variance of $1.226 million in O &M revenues and accrued an additional $822,000 in expenses, the majority of which (roughly $780,000) were Plant Operations Department expenses. Period 13 ended with a favorable $404,000 variance, as compared to Period 12. In terms of budget versus actual revenue over expense, the District ended the year with a $3.13 million favorable O &M variance. Items not included in the Period 13 overview which may be included in the audit entries included an $80,000 Meyers Nave legal bill for June 2012, the permit counter adjustment, and an insurance reimbursement for the cogeneration system incident. b. RECEIVE CAPITAL IMPROVEMENT BUDGET (CIB) YEAR -END STATUS REPORT. The Capital Projects Committee reviewed this matter at its August 16, 2012 meeting. Provisional Capital Projects Division Manager Andrew Antkowiak stated that the Capital Program came under its $25.9 million budget at $24.8 million, but revenues CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 of $21.5 million were lower than the budgeted $22.2 million. The reduction in the Sewer Construction Fund balance was budgeted at $3.7 million but came in at $3.3 million, a favorable variance. He also discussed the Treatment Plant, Collection System, General Improvements and Recycled Water Programs' major projects and variances. The Board received the report without comment. C. APPROVE THE REVISED FISCAL YEAR (FY) 2012 -13 CAPITAL IMPROVEMENT BUDGET (CIB) FUNDING AUTHORIZATION TABLE (TABLE 1) WITH ACTUAL RATHER THAN ESTIMATED CARRYOVER OF UNSPENT FUNDS PREVIOUSLY ALLOCATED TO ONGOING PROJECTS AND REVISED TOTAL FY 2012 -13 AUTHORIZATIONS FOR EACH PROGRAM NEEDED FOR FY 2012 -13 BASED ON FY 2011 -12 YEAR -END FINANCIAL DATA. None. None. It was moved by Member McGill and seconded by Member Hockett to approve the revised FY 2012 -13 CIB funding authorization table (Table 1) with actual rather than estimated carryover of unspent funds previously, allocated to ongoing projects and revised total FY 2012 -13 authorizations for each program, needed for FY 2012 -13 based on FY 2011 -12 year -end financial data. Motion passed by unanimous vote of the Board. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS 11. CLOSED SESSION The Board recessed at 3:20 p.m. to reconvene in closed session in the Caucus Room. 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 • Director of Collection System Operations Curtis Swanson • Human Resources Manager Teji O'Malley • Secretary of the District Elaine Boehme Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS /CG) • Management Group CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 6, 2012 The Board recessed at 4:39 p.m. to reconvene in the Board Room in open session. 12. REPORT OUT OF CLOSED SESSION The Board directed Human Resources Manager Teji O'Malley to assist with selecting a facilitator to manage the process of performance evaluations for staff reporting directly to the Board. 13. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:45 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, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California 10