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HomeMy WebLinkAbout03.a.2) Approve minutes of meeting held February 7, 2013MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 7, 2013 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, February 7, 2013. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, Pilecki, 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. The Board welcomed the following new employees: Imran Chaudhary, Information Technology Analyst; Nohemi Sanchez, Engineering Assistant I; and Katherine Nasset, Engineering Assistant I. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. PRESENTATION OF 2012 CALIFORNIA WATER ENVIRONMENT ASSOCIATION (CWEA) SAN FRANCISCO BAY SECTION AWARDS BY TOM HENDREY, PAST SECTION PRESIDENT: TREATMENT PLANT OF THE YEAR AND COLLECTION SYSTEM OPERATION OF THE YEAR Tom Hendrey, past President of CWEA San Francisco Bay Section, presented the awards and commended the District for its consistent performance, noting that it has won an average of 2 awards a year over the last 13 years, for a total of 28 awards since 1999. Provisional General Manager Curt Swanson thanked the Board for its support and added that the District has automatically been entered into the State Awards, the winners of which will be announced at the CWEA Conference in April 2013. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 Member Causey requested that the awards be publicized to the District's ratepayers, to which staff responded that an announcement will be made in the next Pipeline newsletter, and notification made to the local press. 4. CONSENT CALENDAR a. Approve minutes of January 10, 2013 Board meeting. b. Approve expenditures dated February 7, 2013. Reviewed by Budget and Finance Committee. C. Receive December 2012 Financial Statements and Investment Reports, and receive six -month variance review of Operations and Maintenance Budget for Fiscal Year 2012 -13. Reviewed by Budget and Finance Committee. d. Approve proposed conference attendance of Board Members for the period February through December 2013. Reviewed by Budget and Finance Committee. e. Adopt Resolution 2013 -002 appointing Paul Seitz as Collection System Operations Division Manager, M -24 ($11,530 - $14,015), effective February 7, 2013. Adopt changes to job classification of General Manager. Approval recommended by Human Resources Committee. g. Delete a vacant Pumping Stations Supervisor position (S75, $7,521 - $9,106), and add and authorize the filling of two Pumping Stations Operator III positions (G70, $6,647 - $8,042). Approval recommended by Human Resources Committee. Continued from November 15 and December 6, 2012. h. Delete a vacant Plant Operations Trainer position (S79, $8,266- $9,994), abolish the job classification of Plant Operations Trainer, and add and authorize the filling of a Shift Supervisor position (S76, $7,698 - $9,322). Approval recommended by Human Resources Committee. Continued from November 15 and December 6, 2012. Delete a vacant Information Systems Specialist position (G64, $5,761- $6,970), retitle the Network Coordinator job classification to "System Administrator," retitle the Network Technician job classification to "Technical Support Analyst," and add and authorize the filling of one System Administrator position (G70, $6,647 - $8,042). Approval recommended by Human Resources Committee. Continued from December 6, 2012. Delete a vacant Electrical Technician position (G69, $6,489 - $7,846), establish the job classification of Plant Operations Training Coordinator (G68, $6,332 - $7,664), add a Plant Operations Training Coordinator position, and authorize the filling of the position. Approval recommended by Human Resources Committee. Continued from December 6, 2012. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 Member Causey suggested changes to be made to the job classification of the General Manager included in Item 4.f. Member Causey stated his belief that the next General Manager should have the opportunity to review the proposed staffing changes, as they may not be in keeping with his or her envisioned organizational structure. He noted that it would be helpful to understand the comprehensive changes staff wants. While he recognized the current number of vacancies at the District, he stated that an opportunity exists to comprehensively evaluate all staffing. It was moved by President Nejedly and seconded by Member Williams to adopt the Consent Calendar as recommended, with the changes requested by Member Causey to the job classification in Item 41 Motion passed by the following vote of the Board: AYES: Members: Causey (Items 4.a. -4.d. and 4.f. only), Pilecki, Williams, Nejedly NOES: Members: Causey (Items 4.e., 4.g., 4.h. -.j. only) ABSENT: Members: McGill 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 7.a.3) was taken out of order to accommodate a member of the public who was present to speak on the item. 6. PUBLIC HEARINGS a. HOLD PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION 2013 -003 FINDING THAT, IN ACCORDANCE WITH CALIFORNIA PUBLIC CONTRACT CODE SECTION 7201, THE PRIMARY TREATMENT RENOVATIONS, DISTRICT PROJECT 7285, ARE SUBSTANTIALLY COMPLEX TO JUSTIFY INCREASING THE CONTRACT RETENTION AMOUNT FROM 5 PERCENT TO 10 PERCENT Provisional General Manager Curt Swanson stated that the Primary Treatment Renovations project is scheduled to be bid in March 2013. Member Pilecki stated the complexities of the project, at an estimated cost of $10.5 million and construction term of 18 -24 months, involving instrumentation, complete replacement and relocation of electrical, a significant number of subcontractors, scum system and primary effluent pumps replacement, variable frequency drives, and grit handling facility construction. The public hearing was opened and closed without comment. It was moved by Member Pilecki and seconded by Member Williams to adopt Resolution 2013 -003 increasing the contract retention for the Primary Treatment Renovations, District Project 7285, and finding that the project is substantially complex to justify increasing the CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 retention amount from 5 percent to 10 percent, in accordance with California Public Contract Code Section 7201. Motion passed by unanimous vote of the Board. 7. REPORTS a. GENERAL MANAGER 1) Businesses in Significant Non - Compliance for 2012 Provisional General Manager Curt Swanson reported that federal regulations establish criteria for use by local wastewater agencies to determine if regulated businesses are in significant non - compliance. These regulations require the District to publish certain information in the newspaper at least once a year. This year, three businesses were in non - compliance: Acme Fill Corporation, Diablo Valley College, and Nu West Textiles Group. Pursuant to the federal requirements, a Notice of Significant Non - Compliance for 2012 will be published in the Contra Costa Times. 2) 2012 Title V Clean Air Act Annual Report Provisional General Manager Curt Swanson reported that the District has a regional permit to operate from the Bay Area Air Quality Management District (BAAQMD), as well as a Title V Major Facility Air Permit, approved by the United States Environmental Protection Agency (EPA) and implemented and handled by the BAAQMD. The District is required to prepare a report summarizing its compliance status, and this year it reported 100 percent compliance with its air permit. This report was submitted to the EPA and BAAQMD in January 2013, as required. 3) Update on source control issues involving Caffe Classico Foods in Concord Provisional General Manager Curt Swanson reported that the District initiated a formal enforcement action against Caffe Classico Foods for multiple violations of the District's Source Control Ordinance. A negotiated settlement was reached on January 23, 2013, elements of which are contained in the letter dated January 29, 2013, in the Board agenda packet. The final settlement is pending receipt of a signed letter from Caffe Classico, due February 12, 2013. Mr. Don Gaube of the Alamo Group, LLC, stated his belief that the settlement proposal on the table with Caffe Classico is not punitive enough for the alleged grievances, going over 10 years. He recommended that the Board deny the settlement. Environmental Compliance Superintendent Tim Potter stated that the objective of the District's enforcement actions is to compel compliance without jeopardizing the business in non - compliance, and the negotiated settlement CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 was pursued in that fashion. If the settlement is agreed to, Caffe Classico will have to achieve zero discharge to be in compliance, and there are incentives for them to do this by end of February or June 30, 2013. President Nejedly noted that Caffe Classico has had a history of making unfulfilled promises and noted that achieving zero discharge would be a costly endeavor. He questioned whether Caffe Classico intends to achieve compliance or if it is attempting to buy time. He noted that a significant amount of staff time has been spent on this matter. Mr. Potter explained that the settlement agreement was structured to allow for an alternative date associated with a higher penalty. Caffe Classico would have to pay leased capacity use charges starting February 1, so there is an incentive to reach February 28, which is the date to which they committed. The District has given them alternative dates, should permits be needed to achieve a better long -term solution in obtaining zero discharge. Member Williams asked whether the District is losing any opportunity while Caffe Classico is paying for operating charges and using capacity. Staff responded that, if zero discharge is achieved, Caffe Classico will no longer be using capacity. Staff is negotiating a separate settlement regarding capacity. In response to a question from Member Pilecki, Mr. Potter confirmed that if, by June 30, 2013, Caffe Classico is not in compliance, in addition to a $75,000 penalty, the Board may consider conducting a public hearing to disconnect its service. There is an option in the settlement to continue past June 30, 2013 if absolutely necessary, so staff was not absolute on the disconnection of service in the agreement. However, if Caffe Classico does not take the appropriate actions, the option to disconnect will be brought before the Board.. District Counsel Kent Alm stated that, with regard to the capacity issues, if Caffe Classico were to achieve zero discharge, the District will have lost money, and there may be statute of limitations issues in recovering those funds. Whether staff pursues overdue fees, or returns to the Board as a compromise of some sort, would be a separate matter not included in the proposed settlement agreement. Member Causey asked, if Caffe Classico achieved zero discharge, what its capacity rights going forward would be if someone moves into the building subsequent to their failure. Mr. Alm responded that no deal has been made yet, and, if they do not pay for capacity, they will have no rights going forward. Any proposition acceptable to staff would have the contingency of not creating rights in future property owners. Member Causey asked if the District would be creating a lien against the property for future capacity requirements, and if that would be tracked by staff. Mr. Alm responded that staff may not have reached that point, and the District would generally want to be made whole for a building and business of this size at zero industrial CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 discharge. That is all that would be attached to the property. Staff has not considered whether the property would be liened or a real property chain created; however, future owners would not obtain any capacity rights over what had been paid. Member Causey confirmed with Mr. Potter that the current letter is with the operator, not the property owner, and the former property owner has no responsibility for the current operations of the facility. Member Causey noted that any capacity fees are the responsibility of the previous owner, and staff added that, based on the statute of limitations, the District would like to receive about $566,000 in capacity fees. If pretreatment is used, that number may decrease and is flexible, depending on how the operator performs. Member Causey shared President Nejedly's concerns, noting that it could result in an extra six months of operation or bankruptcy for Caffe Classico, leaving the District empty handed. He directed staff to be firm with the June 30 deadline. Member Pilecki asked that, if the March 1 deadline outlined for a number of compliance issues is not met, the District consider setting the hearing and stopping service until payment of the capacity fees is received. 4) Announcements The following written announcements were included with the agenda packet: a) Public Bidding for Lafayette Sewer Renovations, Phase 8, District Project 8404 b) Provisional General Manager Curt Swanson to Attend California Association of Sanitation Agencies Conference in Washington, D.C. from February 23 -28, 2013 c) Collection System Operations (CSO) Employees Don Rhoads, Don Bartlett, Tifton Gantt, and Steve Sauter to Travel to Florida and Indiana for Vehicle Inspections d) CCCSD to Partner with County Flood Control District to Raise Height of Levees Around the Treatment Plant e) Assistance Provided to Delta Diablo Sanitation District The following additional announcements were made at the meeting: f) Refinery Recycled Water Project Update on Status of Possible Grant Funding from the Water Resources Development Act (WRDA) Recent Promotions CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 g) Short-Term Maintenance Agreement with Solar Turbines for the Cogeneration System h) HOB Staff relocation to the Annex and various sites on Martinez campus, and the leased Concord building b. COUNSEL FOR THE DISTRICT 1) Written Legal Update District Counsel Kent Alm stated that he provided a written legal update in the agenda packet. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the Enterprise Committee Meeting scheduled for February 11, 2013 and the Capital Projects Committee Meeting scheduled for February 14, 2013. 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 Williams Member Williams and Member Pilecki reported on the January 25, 2013 Human Resources Committee meeting and summarized the Action Summary. The Board received the report without comment. President Neiedly President Nejedly reported on the February 4, 2013 Budget and Finance Committee meeting, which was also attended by Member McGill, and summarized the Action Summary. The Board received the report without comment. 2) Announcements None. 8. ENGINEERING a. AUTHORIZE THE GENERAL MANAGER TO AMEND THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH HDR ENGINEERING, INC. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 FROM $45,000 TO A NEW CONTRACT CEILING OF $167,000, FOR TREATMENT PLANT PLANNING, DISTRICT PROJECT 7301 Provisional General Manager Curt Swanson stated that the District's 2012 National Pollutant Discharge Elimination System (NPDES) permit requires the District to evaluate traditional and alternative ammonia removal technologies by February 2014. Most of these methods are biological and contain site - specific microorganisms. The study will be used for evaluation of near -term plant optimization strategies, more accurate modeling of ammonia removal options, and cost estimating for future nutrient removal facilities. Member Causey stated concern with the increase in the contract amount and that it seemed this additional work should have been part of the original scope. He asked that the Board discuss contract extensions and consultant selections at the upcoming Board Workshop. Member Williams asked that, when there is an expectation of follow -up work in a contract being brought to the Board for approval, that work be noted in the Position Paper. Member Pilecki stated that receiving a periodic report identifying various agreements of this sort would be helpful to the Board. It was moved by Member Williams and seconded by Member Pilecki to authorize the General Manager to amend the existing professional services agreement with HDR Engineering, Inc. from $45,000 to a new contract ceiling of $167,000, for Treatment Plant Planning, District Project 7301. Motion passed by unanimous vote of the Board. 9. TREATMENT PLANT a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A TECHNICAL CONSULTING SERVICES AGREEMENT IN AN AMOUNT NOT TO EXCEED $140,000 WITH BLUE SKY ENVIRONMENTAL, INC., FOR ASSISTANCE WITH TESTING OF MULTIPLE HEARTH FURNACES (MHF) NO. 1 FOR COMPLIANCE WITH TITLE V AIR PERMIT REQUIREMENTS Provisional General Manager Curt Swanson stated that, as part of its Title V air permit, the District is required to perform compliance demonstration source testing on each multiple hearth furnace (MHF) every five years. Of the $140,000 cost ceiling, $40,000 is for the test of MHF No. 1. MHF No. 2 will be tested in 2014. The remaining $100,000 will be used to verify that MHF No. 1 can comply with the emission limits identified by Section 129 of the Clean Air Act before March 2016. It was moved by Member Pilecki and seconded by Member Causey to authorize the General Manager to execute a technical consulting services agreement in an amount not to exceed $140,000 with Blue Sky Environmental, Inc., for assistance None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 with testing of Multiple Hearth Furnaces (MHF) No. 1 for compliance with Title V Air Permit requirements. Motion passed by unanimous vote of the Board. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 11. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Williams requested that the Board discuss the possibility of staff providing a periodic report to the Board regarding the various agreements approved by the Board and consultant selection and extensions on contracts executed by the General Manager. This was discussed by the Board during consideration of Item 8.a. 12. CLOSED SESSION The Board recessed at 3:17 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): • Louis Pimentel v. Central Contra Costa Sanitary District, et al., Contra Costa County Superior Court No. C11- 01142. b. 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. MSC 11- 01307. The Board recessed at 4:11 p.m. to reconvene in the Board Room in open session. 13. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that no reportable action was taken in Closed Session. 14. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:11 p.m. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 7, 2013 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 W]