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HomeMy WebLinkAboutBOARD MINUTES 06-20-13MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 20, 2013 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 20, 2013. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, McGill, Pilecki, 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 Don Salladay, a ratepayer from Pleasant Hill, commented that holding the public hearing in the afternoon made it difficult for some people to attend and asked why the meeting was not scheduled for a later time. President Nejedly, who noted that the District's Board meetings have been held at 2:00 p.m. for as long as he can remember, said the Board would be glad to consider scheduling future public hearings to consider rate increases for later in the day if there was enough interest from the public in doing so. 3. CONSENT CALENDAR Provisional General Manager Curt Swanson stated that Item V. had not been agendized for review by the Budget and Finance Committee, and noted that the Board may pull it from the Consent Calendar to discuss separately if desired. It was the consensus of the Board Members that there was no need to pull the item for discussion. a. Approve minutes of Board meeting held on the following dates: May 16, 2013 (Regular); May 20, 2013 (Special); and May 31, 2013 (Special). b. Approve expenditures dated June 6, 2013. Reviewed by Budget and Finance Committee. C. Set July 25, 2013 at 2:00 p.m. as the date and time for a public hearing to consider placing the following on the Contra Costa County tax roll for collection: Fiscal Year Book 62 — Page 240 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 2013 -14 Capacity Use Charges; Fiscal Year 2013 -14 Assessments for Contractual Assessment Districts and Alhambra Valley Assessment Districts; and Fiscal Year 2013 -14 Assessments for other Fee Installment Payment Programs. d. Set July 25, 2013 at 2:00 p.m. as the date and time for a public hearing to consider placing delinquent charges on the Fiscal Year 2013 -14 Contra Costa County tax roll for collection. e. Set July 25, 2013 at 2:00 p.m. as the date and time for a public hearing to consider: (1) confirming and levying final assessments for St. Mary's Road Contractual Assessment District (CAD) No. 2011 -1 in Lafayette, (2) placing the Fiscal Year 2013 -14 assessments on the Contra Costa County tax roll for collection, and (3) adopting an uncodified ordinance establishing reimbursement fees for the properties which could directly connect to Job 6513. f. Authorize the General Manager to renew insurance coverage for Fiscal Year 2013- 14 for excess liability and property coverage. (This item was not reviewed by the Budget and Finance Committee as had been stated in the accompanying Position Paper.) g. Authorize the General Manager to execute a professional services agreement appointing Maze & Associates, Certified Public Accountants, as independent auditor to perform examination of the District's financial statements for Fiscal Years 2012 -13 through 2015 -16, with an option for a one -year extension. Approval recommended by Budget and Finance Committee. h. Adopt Resolution 2013 -012 authorizing the General Manager to enter into a three - month lease extension through September 30, 2013 with County Quarry Products, LLC for the concrete and asphalt recycling operation at 5501 Imhoff Drive (APN 159- 140 -052). Adopt Resolution 2013 -013 accepting a grant of easement from Alan C. Gould and Arlene I. Gould, property owners at 45 -47 Longridge Road in Orinda (APN 273 -063- 061), and authorizing the execution of a quitclaim deed to the specified property owners(Job 2645 — Parcel 1 -AIR); and authorize staff to record documents with the Contra Costa County Recorder. Adopt revisions to job classification of Plant Operations Superintendent. It was moved by Member Causey and seconded by Member Williams to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. None. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Book 62 — Page 241 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 5. PUBLIC HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER THE FOLLOWING MATTERS: • ADOPTING THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2013 -14 DISTRICT BUDGET • APPROVING THE 2013 TEN -YEAR CAPITAL IMPROVEMENT PLAN AND MAKING THE FINDING THAT THE DOCUMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Capital Projects Division Manager Andrew Antkowiak presented an overview of the $29.6 million draft Fiscal Year 2013 -14 Capital Improvement Budget (CIB) and $365 million 2013 Ten -Year Capital Improvement Plan (CIP) to fund the following four capital programs: Treatment Plant, Collection System, General Improvement, and Recycled Water. The District's capital program represents a replacement of all assets about once every hundred years (or one percent per year), based on an estimated replacement value of approximately $3 billion for the treatment plant, collection system, and pumping station facilities. That represents average annual expenditures of $30 million, or $300 million every ten years. He noted that, for contingency planning purposes, the 2013 Ten -Year CIP includes $70 million for an ammonia removal (nitrification) project; if the project does not go forward, capital expenditures over the next ten years would be reduced to an estimated $295 million. Member Causey noted that, by his estimation, since December 2012, the Board authorized $6.5 million for capital projects that exceeded the aggregate amount budgeted for the specified projects. He asked what changes had been made to the overall capital program to prevent a recurrence in the coming year's CIB. Mr. Antkowiak reiterated that the District's capital budget is developed on a program, not a project, basis. Each of the four programs referenced above is allocated a total dollar amount for all projects under that program, and staff expects to stay within the overall budget allocation for each program area during the coming fiscal year. Member Pilecki commented that, in addition to the $70 million included in the CIP for nitrification, another $20 million was allotted to remove contaminated soil. He inquired as to the likelihood of those projects taking place. Provisional General Manager Curt Swanson said that indications from the Regional and State Water Boards and the Environmental Protection Agency (EPA) are that nitrification likely will be required. There are no such indications, however, at this point with regard to nutrient removal, and no amount for nutrient removal was included in the CIP. In response to another question from Member Pilecki, Mr. Antkowiak said the CIB /CIP are predicated on $34 sewer service charge rate increases in each of the next two fiscal years as well as two $5 million annual prepayments toward the District's unfunded actuarial accrued liability (UAAL). With respect to the Recycled Water Program, Member Williams noted that the CIP included the expenditure of $8.4 million over the next ten years, including $3.4 Book 62 — Page 242 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 million during the coming fiscal year. Other than the roughly $1 million in Proposition 84 grant funding for the Concord Landscape Project, he asked if the District was being reimbursed by water purveyors for any of the budgeted project costs. Provisional General Manager Curt Swanson said the District will be reimbursed for some of the planning activities, but not for construction costs. The public hearing was opened and closed without comment. Member Williams requested that the Recycled Water Program be considered separately. It was moved by Member McGill and seconded by Member Causey to take the following actions: (1) adopt the Fiscal Year 2013 -14 Capital Improvement Budget (CIB), excluding the Recycled Water Program, for inclusion in the Fiscal Year 2013- 14 District Budget; (2) approve the 2013 Ten -Year Capital Improvement Plan (CIP), excluding the Recycled Water Program; and (3) make the finding that the CIB and CIP are exempt from CEQA. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Williams, Nejedly NOES: Members: Pilecki ABSTAIN: Members: None While he voted in favor of the CIB /CIP, Member Causey said he continued to be concerned about authorizing individual capital projects that appear to exceed the amount budgeted. He noted that he looked forward to understanding the process better after further discussion as part of the Capital Projects Committee. With regard to the Recycled Water Program, Member McGill commented that the District has a long history and a long -term obligation to deal with recycled water. That is not to say that the water purveyors should not be involved and have no obligation to utilize recycled water. However, the District received a sizeable grant from the EPA to do the Concord Recycled Water Project. President Nejedly echoed those sentiments and added that there is a moral obligation to use recycled water and prevent it from being pumped into the Suisun Bay. While he understood Member Williams' concerns, he said the District has made efforts over a long period of time to involve the water purveyors. Member Williams stated that he was going to vote against the Recycled Water Program, not because he is opposed to recycling water, but because he is a strong supporter of good government. The California Urban Water Management Act clearly states that water districts are required to plan for and implement the future needs of the water demand for their communities. There are two water agencies in the District's service area, East Bay Municipal Utility District ( EBMUD) and Contra Costa Water District (CCWD). EBMUD has an aggressive recycled water program and charges its customers accordingly, some of whom are in the District's service area. The District's ratepayers are paying double for recycled water - they are paying EBMUD and the District. District ratepayers in the CCWD service area are subsidizing ratepayers in Antioch and Pittsburg because they pay nothing for Book 62 — Page 243 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 recycled water. As a producer of wastewater treated at a higher level than water agencies, the District's mission is to cooperate with the water agencies because it produces the treated wastewater that ultimately ends up in the CCWD service area. In conclusion, Member Williams expressed the view that although he supports recycled water, it does not serve the best interests of the District's ratepayers to go forward with the Recycled Water portion of the capital expenditure program. While Member Causey concurred with Member Williams, he said he would vote for the Recycled Water Program; however, he recommended that a more active and aggressive role be taken with CCWD to determine whether recycled water should be a separate operating fund so it is clear who is footing the bill. He also suggested this issue be discussed at the upcoming Board Priorities Workshop. President Nejedly agreed with Member Williams' premise; however, he said it should not preclude the District from involving itself in recycling water when CCWD has been unwilling to do so up to this point. He added that, in his opinion, CCWD is double charging its ratepayers because, as the purveyor of the water, it charges customers for canal water and again when they provide customers with recycled water that the District has treated and sent back to them via the Suisun Bay. He said the District has an obligation to take advantage of the commodity it produces. Member Pilecki said he would be voting against the Recycled Water Program for many of the same reasons as Member Williams. He said he is a proponent of recycled water when it makes sense financially. Large - volume projects such as those proposed for the Martinez refineries and possibly at the Concord Naval Weapons Station make sense because they have reasonable payback periods and will put fewer pollutants in the Bay, which could ultimately reduce the District's costs by possibly not having to make certain improvements to plant treatment processes. In response to a question from Member Causey, District Counsel Kent Alm said that regardless of the Board's vote on the Recycled Water Program budget, the District would remain obligated under the recycled water contract for the recently commenced Concord Landscape Project. Member McGill also pointed out that, once the infrastructure for recycled water projects are in place, they generate revenue, and payback periods are always taken into consideration when evaluating such projects. In the case of the Concord Landscape Project, it was noted that the payback period is quite a bit less than 15 years due to the sizeable number of customers. Also, the City of Concord has contributed $1 million to this project because it benefits businesses in that city. 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: Causey, McGill, Nejedly NOES: Members: Pilecki, Williams ABSTAIN: Members: None Book 62 — Page 244 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 b. CONDUCT PUBLIC HEARINGS ON THE FOLLOWING MATTERS: 1) CONSIDER ADOPTING THE FOLLOWING BUDGETS FOR FISCAL YEAR 2013 -14: • OPERATIONS AND MAINTENANCE BUDGET • DEBT SERVICE FUND BUDGET • SELF - INSURANCE FUND BUDGET Before presenting an overview of the three budgets, Finance Manager Thea Vassallo stated that the average person generates 70 gallons of raw sewage and wastewater per day, and the average household produces three times that amount, or 210 gallons per day. She explained that the District's Sewer Service Charge (SSC) provides the following services with respect to that raw sewage and wastewater: collection and transport; treatment into clean water for recycling or discharge into the Suisun Bay; compliance with air, water and environmental regulations; infrastructure repair and replacement; cleaning and maintenance of 1,500 miles of sewer pipe; and disposal of household hazardous waste. She provided a cost comparison of other household bills, statistical facts on the District's operations, and a chart showing that, even with the proposed SSC increase, the District's rates still lie below the midrange with comparable agencies' rates. With respect to the budgets for Fiscal Year 2013 -14, Ms. Vassallo stated that projected total Operations and Maintenance (O &M) revenues and expenses to be $75.1 million and $77.8 million, respectively. This represents a $2.7 deficit, owing primarily to the $5 million payment toward the UAAL to be made in the next fiscal year. Budgeted benefits for the coming fiscal year total $27.6 million, a 9.7% increase from the prior year. Debt Service Fund revenue is expected to be $5.6 million, all of which will be covered by the $13.7 million anticipated ad valorem tax revenue. The remaining balance of the ad valorem tax will be added to the Sewer Construction Fund for use by the Capital Program. Self- Insurance Fund revenues are budgeted at $646,000. With anticipated expenses of $923,000, Self- Insurance Fund reserves are projected to be drawn down by $277,000 by the end of Fiscal Year 2013 -14, or $4.3 million. Ms. Vassallo also summarized the District's actions to reduce costs in the areas of salaries and benefits, administration and engineering, plant operations, and collection system and pumping stations. The public hearing was opened and closed without comment. It was moved by Member McGill and seconded by Member Causey to approve and adopt the Fiscal Year 2013 -14 O &M Budget, Debt Service Fund Budget and Self- Insurance Fund Budget. Motion passed by the following vote of the Board: Book 62 — Page 245 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 AYES: Members: Causey, McGill, Williams, Nejedly NOES: Members: Pilecki ABSTAIN: Members: None 2) CONSIDER ADOPTING UNCODIFIED ORDINANCE NO. 278 ESTABLISHING AN INCREASE IN THE ANNUAL SEWER SERVICE CHARGE FOR RESIDENTIAL AND NON - RESIDENTIAL CUSTOMERS OF $34 PER RESIDENTIAL UNIT EQUIVALENT (RUE) FOR FISCAL YEAR 2013 -14, EFFECTIVE JULY 1 2013 FOR A TOTAL OF $405 PER RUE; AND AN ADDITIONAL $34 PER RUE INCREASE FOR FISCAL YEAR 2014- 15, EFFECTIVE JULY 1, 2014 FOR A TOTAL OF $439 PER RUE Finance Manager Thea Vassallo stated that, as of 1:00 p.m., 67 legally valid written protests were received from 105,803 Proposition 218 notices mailed, representing a less than 0.1 % response. The public hearing was opened. Mike Arata, of the Alliance of Contra Costa Taxpayers and a ratepayer from Danville, handed out a chart of 2011 salaries and benefits put together by the Contra Costa Times. He noted that he believed the Spring Pipeline newsletter noticed an erroneous date for today's meeting, the Board Room was difficult to find, and the Proposition 218 notice contained fine print that discouraged people from action. He also stated his opinion that the salaries and benefits awarded by the Memorandum of Understanding (MOU) with the Public Employees Union, Local One, were overly generous and asked the Board to cut back on employee expenditures before seeking a rate increase. He noted his opinion that salaries and benefits are irrespective of the capital and maintenance needs of the District, and those needs were known in December 2012, when the majority of the Board should not have approved the MOU as it did. Faye Linton, a resident of Bay Point, stated that she has cut back on her personal spending. She stated her opinion that recycling water costs money and someone else would do it if the District did not. She acknowledged that she did not reside in the District's service area but was present to support her neighbors. Don Salladay, a resident of Pleasant Hill, cited employee salaries he believed to be high and asked the Board to tighten the District's budget. Gerry Joyce, a resident of Moraga, opposed general increases in taxes. Jan Warren, a resident of Walnut Creek, stated her concern that the District has no vision for the future; therefore, with the same employees, the problem will remain unsolved, rates will increase, and employees will continue to receive benefits that do not match the District's income. Book 62 — Page 246 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 The public hearing was closed Member Williams observed that the members of the public spoke mainly I about salaries and benefits. He noted that the District's current MOUs will be I in place for the next several years; the matter at hand was not the MOUs but a capital and an operating budget. It was his opinion that the District's budgeted staffing and replacement rate are appropriate and he intended to vote for the proposed SSC increase. Member Pilecki responded to comments made by Mr. Salladay and Mr. Arata, that perhaps the Board should discuss holding meetings at a more publicly - accessible time. He noted that the unfunded liability problem has been over 30 years in the making, and progress is being made, with employees already paying more of their prior share, new legislation being passed, and less generous benefits for newer employees. He suggested that the District look at not filling vacant positions. Member McGill stated that he has always been sensitive to rate increases, and the District has reduced costs, all while facing labor negotiations and pension depooling. He noted that, while the Board considers baseline studies and comparisons to other agencies, it must also consider the serious impact of a permit violation. Thus, he supported the staff recommendation. Member Causey stated his concerns about moving forward with no current General Manager, vacant management positions, and the need for leadership training. He stated the need for a long -term vision for the District, to address salaries and benefits, the spending of the Capital Program, and staffing. He noted that, at this time, he would be reluctant to go forward with the full two - year rate increase. He suggested the increases be bifurcated, noting that he could probably support the first year but not the second year, as he anticipated a significant amount of work to be done upon the arrival of the new General Manager. President Nejedly noted that he was conflicted in his forthcoming decision, having voted against almost three years' worth of rate increases in projects, which may have eliminated the need for a rate increase this year. He stated that, as a ratepayer, he is sympathetic to the public's concerns. In the last 20 years, the Board has increased rates only 12 times, with 5 years of no increases, followed by increases of $6, $12, and $11. He also spoke of the dangers of deferring rate increases. With respect to recent labor negotiations, he noted that the District is recovering from the loss of about 30 employees and stood to lose more if it cut more on salary and benefits. While the District has financial obligations through the retirement association, all of the Board Members have taken a stand against spiking. Member Causey stated that he could consider a two -year rate increase, provided there be a provision to require the Board to return in a year with a determination of what the second -year rate should be, at a noticed meeting Book 62 — Page 247 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 held at a time other than 2 p.m. that the public could attend. Under those circumstances, he would be willing to approve the second -year increase. Member Williams expressed interest in Member Causey's suggestion. He noted that salaries and benefits are set, so any protests to the rate increase would be against infrastructure improvements and other operations of the District funded by the SSC. It was moved by Member Pilecki to find that there was not a majority protest as indicated by receipt of only 67 legally -valid letters in opposition; adopt Uncodified Ordinance No. 278 increasing the annual SSC for residential and non - residential customers by $20 per RUE for Fiscal Year 2013 -14, effective July 1, 2013, for a total of $391 per RUE; and by up to an additional $20 per RUE for Fiscal Year 2014 -15, effective July 1, 2014, for a total of $411 per RUE. Member Pilecki stated upon making his motion that he has looked at the numbers, staffing, and financial obligations of the District, and looking toward doing this again next year, his motion forces the District to hire only half of its vacant positions (15, at an estimated cost of $1 per SSC each), take advantage of the $3 million unspent in the Capital Budget, and cut costs where possible. He believed the numbers would work and stated his intent to tackle only staffing costs, while not affecting the capital or operating budgets. Member Williams responded that the $20 increase seemed arbitrary, after staff performed its exhaustive analysis to formulate its recommendation over many months. Member McGill echoed Member Williams' concern and stated that he would be more comfortable addressing the issues at the Board Priorities Workshop, though the Board could ask staff to not fill positions until then. He stated that he would not second, and probably not vote for, the motion made by Member Pilecki. President Nejedly commented that it was important for the ordinance to allow the Board to lower the second year increase if necessary. Motion died for lack of a second. It was moved by Member McGill to find that there was not a majority protest as indicated by receipt of only 67 legally -valid letters in opposition; adopt Uncodified Ordinance No. 278 increasing the annual SSC for residential and non - residential customers by $34 per RUE for Fiscal Year 2013 -14, effective July 1, 2013, for a total of $405 per RUE; and by an additional $34 per RUE for Fiscal Year 2014 -15, effective July 1, 2014, for a total of $439 per RUE; with the additional condition that prior to imposing the rate for Fiscal Year 2014 -15, a noticed public hearing will be held to determine whether the full $34 increase is still necessary. Book 62 — Page 248 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of June 20, 2013 Member Causey stated that he was committed next year to not approving a $34 rate increase because, based on discussions with staff, he encouraged the District to do more with less. He stated that, with changes to come, he was against having to spend $50,000 issuing a Proposition 218 notice next year. Member Williams stated that, with the budget providing funding for projects that will keep sewage out of people's homes and protect the Bay, 27 positions which the Board will examine carefully to determine if they are still needed, and contracts in place setting salaries and benefits until 2017, he would vote yes on the motion. President Nejedly echoed Member Williams' sentiments. The above motion made by Member McGill was seconded by Member Causey. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Williams, Nejedly NOES: Members: Pilecki ABSTAIN: Members: None After considering this item, the Board recessed at 4:36 p.m. At 4:46 p.m., the Board reconvened the meeting. 6. BIDS AND AWARDS a. AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $316,582 TO NOR -CAL PIPELINE SERVICES THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR CONSTRUCTION OF THE CIPP (CURED-IN- PLACE PIPE) LINING OF SANITARY SEWERS DISTRICT PROJECT 5999; 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 Provisional General Manager Curt Swanson stated that the District received four bids for the blanket contract for Cured -In -Place Lining of Sanitary Sewers, District Project 5999. The project consists of installing a cured -in -place liner on an as- needed basis for urgent repair locations identified by the Collection System Operations Department. The contract will be open for three years and includes three initial required sites to be repaired. Staff reviewed the bids and recommended awarding the project to Nor -Cal Pipeline Services for $316,582. Book 62 — Page 249 a CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 Member Causey said the project appeared to be over budget and, since he was unsure where the additional funding would come from, he would vote against the project. It was moved by Member Pilecki and seconded by Member Williams to award a construction contract in the amount of $316,582 to Nor -Cal Pipeline Services, the lowest responsive and responsible bidder for construction of the CIPP (Cured -in- Place Pipe) Lining of Sanitary Sewers, District Project 5999; 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. Motion passed by the following vote of the Board: AYES: Members: McGill, Pilecki, Williams, Nejedly NOES: Members: Causey ABSTAIN: Members: None 7. REPORTS GENERAL MANAGER 1) Update on Seismic Improvements for Headquarters Office Building (HOB) District Project 8226 In the interest of time, this update was postponed to a future meeting. 2) Announcements The following written announcements were included with the agenda packet: a) 2013 National Association of Clean Water Agencies ( NACWA) Platinum Peak Performance Award — Plant Operations Division Manager Alan Weer to Attend NACWA Summer Conference from July 14 through July 17, 2013, in Cincinnati, Ohio b) Attendance at the Water Environment Federation /International Water Association (WEF /IWA) Nutrient Removal and Recovery Conference 2013 — July 28 through July 31, 2013, in Vancouver, British Columbia, Canada The following additional written announcements were handed out at the meeting: c) Mercury spilled by customer arrives at Household Hazardous Waste (HHW) Facility d) Recent Personnel Advancements — Chris Haisley and Greg Palmer advanced to Pumping Stations Operator Ills Book 62 — Page 250 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of June 20, 2013 e) Prop 1 E grant funding not received on joint project with Contra Costa County Flood Control District to raise height of levees surrounding the Treatment Plant for flood protection b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced Closed Sessions to be held at the next meeting to provide updates on the following two matters: • Contra Costa County DeDU1Y Sheriffs Association et al. v. Contra Costa Count Employees' Retirement Association (CCCERA) et al., Contra Costa County Superior Court Case No. MSN12 -1870. • California River Watch C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming June 24, 2013 Enterprise Committee Meeting and the June 27, 2013 Capital Projects Committee Meeting. d. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend, ipend, 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 (their expenses Member McGill Member McGill reported on the June 12, 2013 Industrial Association of Contra Costa County (IACCC) June Forum featuring Jack Stewart of California Manufacturers and Technology Association speaking on the California economy, and the June 13, 2013 East Bay Leadership Council (formerly Contra Costa Council) Installation Dinner to install officers for 2013- 14 and honoring Keith and Iris Archuleta with the Contra Costa Medal Award for their work in building healthy organizations and sustainable communities. Member McGill and President Nejedly also reported on the June 17, 2013 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. 2) Announcements Member McGill provided a written report covering Announcements and other meetings. Book 62 — Page 251 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION a. RECEIVE REPORT ON EMERGENCY DECLARED ON MAY 2 2013 AUTHORIZING REPAIRS TO THE DAMAGED DISSOLVED AIR FLOTATION (DAF) TANK, DISTRICT PROJECT 7265 TREATMENT PLANT EQUIPMENT REPLACEMENT PROJECT PURSUANT TO PUBLIC CONTRACT CODE 22050(B); AND TERMINATE THE EMERGENCY SITUATION IN ACCORDANCE WITH PUBLIC CONTRACT CODE 22050(C)(3) None. Associate Engineer Clint Shima presented an update on the status of the repairs on Dissolved Air Flotation (DAF) Tank No. 1, which failed catastrophically on April 19, 2013. He stated that, at the May 2, 2013 Board meeting, the Board declared an emergency to allow immediate repairs. At the May 16, 2013 Board meeting, the Board authorized an amount up to $250,000 for the repair work. All repair work has been completed and the damaged DAF Tank was returned to service on June 10, 2013. A final report on the cost of repairs will be given to the Board in July. At this point, he said it was recommended that the Board terminate the emergency situation. It was moved by President Nejedly and seconded by Member Causey to terminate the emergency situation in accordance with Public Contract Code 22050(c)(3). Motion passed by unanimous vote of the Board. 9. SUGGESTIONS FOR FUTURE AGENDA ITEMS 10. ANNOUNCEMENT OF CLOSED SESSION (Pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced Closed Session Item 11.a. 11. CLOSED SESSION The Board met in closed session with District Labor Counsel Daniel Clinton and District Counsel Kent Alm at 4:58 p.m. regarding the following matter: a. Personnel Matters pursuant to California Government Code Section 54957(b): • Public Employee Appointment Title: General Manager The Board recessed at 5:18 p.m. to reconvene in open session. Book 62 — Page 252 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of June 20, 2013 12. REPORT OUT OF CLOSED SESSION District Labor Counsel Dan Clinton 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 5:18 p.m. G, It JaavfA. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: (�S&a" Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Book 62 — Page 253