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HomeMy WebLinkAbout04.a. Approve minutes of meeting held September 5, 2013yQ MINUTES OF THE REGULAR MEETING • OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 5, 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, September 5, 2013. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, McGill, Pilecki, Nejedly (arrived at 2:25 p.m.) ABSENT: Members: Williams a. PLEDGE OF ALLEGIANCE TO THE FLAG None. The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. RECEIVE THE NATIONAL ASSOCIATION OF CLEAN WATER AGENCIES (NACWA) PLATINUM 15 PEAK PERFORMANCE AWARD. Plant Operations Division Manager Alan Weer stated that the District received the 2012 NACWA Peak Performance Award, Platinum 15, for its total processed flow of 13.8 billion gallons; 3,800 tons of total ash produced; 23,000 laboratory analyses performed; and zero permit violations incurred in 2012. Nationwide, only 20 facilities currently have active compliance streaks longer than the District's, and the District presently holds the third longest streak in California. Mr. Weer thanked the Board and staff for its support and presented the award to President Pro Tern McGill. 4. CONSENT CALENDAR a. Approve minutes of August 1, 2013 Board meeting. b. Approve expenditures dated September 5, 2013. Reviewed by Budget and Finance Committee. CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of September 5, 2013 C. Receive July 2013 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. d. Adopt Resolution 2013 -030 establishing the Sewer Construction Fund and Debt Service Fund appropriations limit in the amount of $88,919,318 for Fiscal Year 2013- 14, 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. It was moved by Member Pilecki and seconded by Member Causey to adopt the Consent Calendar as recommended. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki NOES: Members: None ABSENT: Members: Williams, Nejedly 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 6.a. was taken out of order, as it required four votes to pass, and only three Board Members were present at the time. 6. PUBLIC HEARINGS a. CONSIDER ADOPTING RESOLUTION 2013 -031 DIRECTING THAT DELINQUENT CHARGES RELATED TO THE PROPERTY LOCATED AT 3382 JOHNSON ROAD IN LAFAYETTE BE PLACED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL FOR COLLECTION IN FIVE ANNUAL INSTALLMENTS STARTING IN FISCAL YEAR 2013 -14. This item was continued from the July 25, 2013 Board meeting. On September 3, 2013, the Budget and Finance Committee recommended Board adoption of the resolution. Engineering Assistant III Earlene Millier stated that the property owner, Mrs. Nancy Martin, acknowledged the existence of a second living unit currently being used as a rental unit. She claimed, however, that she was unclear of the details of how the unit was built, since it was constructed by her now deceased husband. Staff recommended granting Mrs. Martin's request to waive the 10 percent delinquency fee of $459.50 and 1.5 percent per month penalty fee of $381.63, for a total of $841.13 in waived fees. Mrs. Martin also asked that the $7,595.00 in total permit fees be spread over 5 years on her property tax roll. The public hearing was opened and closed without comment. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 President Nejedly stated that the property owner is an elderly woman with financial hardship, who appeared to be genuinely unaware that the fees were owed. He stated his belief that the District bears some onus in making sure the property owner is aware when his contractor or other representative is charged fees at the permit counter on his behalf. He suggested waiving the fees Mrs. Martin requested the Board to waive and allowing her the 5 years to pay the delinquent fees. He stated that it would be fair to ratepayers to charge her the standard 6 percent interest rate the District uses to finance these. It was moved by President Nejedly and seconded by Member McGill to waive the 10 percent delinquency fee and penalty fees of 1.5 percent per month and give the property owner the option to 1) pay the total delinquent amount immediately, or 2) pay the delinquent amount via placement on the Contra Costa County property tax roll for collection in five annual installments starting in Fiscal Year 2013 -14, charged at the standard 6 percent interest rate; and adopt Resolution 2013 -031 directing that the delinquent charges be placed on the Contra Costa County property tax roll for collection. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Nejedly NOES: Members: None ABSENT: Members: Williams 7. BIDS AND AWARDS a. ADOPT RESOLUTION 2013 -032 AUTHORIZING THE GENERAL MANAGER TO ENTER INTO A SOLE - SOURCE CONTRACT WITH SOLAR TURBINES, INC. IN AN AMOUNT NOT TO EXCEED $650,000 FOR THE INSTALLATION OF FUEL AND CONTROL SYSTEM UPGRADES TO THE COGENERATION SYSTEM, COGEN CONTROLS UPGRADE, DISTRICT PROJECT 7308, PURSUANT TO PUBLIC CONTRACT CODE SECTION 3400(C)(3) AND PURCHASING PROCEDURES MANUAL SECTION 5.3.15; MAKING FINDINGS IN CONNECTION WITH SAID PROJECT: AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $800,000 TO THE TREATMENT PLANT PROGRAM OF THE FISCAL YEAR 2013- 14 CAPITAL IMPROVEMENT BUDGET. On August 30, 2013, the Capital Projects Committee recommended Board adoption of the resolution and approval of the supplemental authorization. Senior Engineer Craig Mizutani stated that the District's cogeneration system experienced an explosion in March 2012 and was down for 6 months, incurring additional utility costs of over $960,000, which have since been reimbursed from the District's insurance company. Re- commissioning was hampered by the fuel control valves and control system, which had become so aged that they were identified as obsolete. Upgrades to the fuel and control system are required, as Solar Turbines, Inc. is unable to support the current equipment under a long -term service agreement. The controls upgrade will cost a total of $1.3 million. 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 The proposed long -term service agreement would be a multi -year, all- inclusive contract, covering all parts and labor and guaranteed availability. Solar Turbines is the original equipment manufacturer and supplier; therefore, it has the necessary proprietary technical knowledge to complete the work. District staff is currently negotiating a contract with Solar Turbines for the upgrade. District Counsel Kent Alm recalled that staff has had difficulties contracting with and obtaining equal bids from other companies that are willing to perform the maintenance, and only Solar Turbines could perform the work that was needed after the explosion. He stated that, for these reasons and for those stated by Mr. Mizutani, he was comfortable with entering into the proposed sole- source contract. It was moved by Member Pilecki and seconded by Member Causey to adopt Resolution 2013 -032 authorizing the General Manager to enter into a sole- source contract with Solar Turbines, Inc. in an amount not to exceed $650,000 for the installation of fuel and control system upgrades to the cogeneration system, Cogen Controls Upgrade, District Project 7308, pursuant to Public Contract Code Section 3400(c)(3) and Purchasing Procedures Manual Section 5.3.15, making findings in connection with said project; and approve a supplemental authorization of $800,000 to the Treatment Plant Program of the Fiscal Year 2013 -14 Capital Improvement Budget. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki NOES: Members: None ABSENT: Members: Williams, Nejedly 8. REPORTS a. GENERAL MANAGER 1) Update on Treatment Plant Optimization Evaluation for Ammonia Removal. Assistant Engineer Samantha Engelage stated that the Plant Optimization for Ammonia Removal study is part of the Nutrient Facility Plan and Site Characterization. She stated that the objective is to evaluate modifications to the existing secondary treatment facilities that would enable ammonia removal in the near term with low capital investments and plant -wide facilities that would increase ammonia removal capacity. As a result of the study, staff recommended the use of Plug -Flow Activated Sludge, Split Treatment and Screenings Removal if the District is required to comply with interim ammonia limits that are larger than 15 mg /L monthly average or larger than 20 mg /L maximum daily average. The next step will be to field verify the assumptions and limiting parameters used in the project, 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 including modeling predictions for ammonia removal, clarifier capacities, site - specific nitrification rate, and complications in running two parallel systems. President Nejedly arrived during this presentation, at 2:25 p.m. Member Causey asked that, in the future, staff present the total lifecycle costs, because in his experience, 85 percent of the cost of projects such as these is in Operations and Maintenance (O &M) over the lifecycle, as opposed to just capital. That information may affect the Board's decisions, if there is a significant increase in O &M cost. 2) Update on closure of Cleanup and Abatement Order for Bollinger Canyon leachfield. General Manager Roger Bailey reported that the Cleanup and Abatement Order for the Bollinger Canyon leachfield represented a significant event in managing the District's liability for sites requiring environmental remediation. More than 23 years ago, the District was partially responsible for the release of chlorinated solvent to the Bollinger Canyon leachfield, and after more than 20 years of monitoring, closure was achieved this year. This was a result of staff working through a closure process with the Regional Water Quality Control Board (RWQCB), led by Environmental Compliance Superintendent Tim Potter for the last 15 years. 3) Announcements The following written announcements were included with the agenda packet: a) Recent Staff Retirement — Don Berger, Associate Engineer in the Environmental Services Division, retired on September 3, 2013, after more than 23 years of service b) Highway 680 billboard displays "Wipes Clog Pipes" pollution prevention message c) District receives the Certificate of Achievement for Excellence in Financial Reporting (CAFR) There were no additional written announcements handed out at the meeting. b. COUNSEL FOR THE DISTRICT 1) Request for waiver with regard to Meyers Nave's representation of the City of Walnut Creek. District Counsel Kent Alm referred to his memorandum in the agenda packet and explained that, since losing its attorney, the City of Walnut Creek has 4 103 n, CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 selected his firm, Meyers Nave, as its counsel in the interim. He was not involved in the process, but the District is one of his clients with a relationship with the City of Walnut Creek. He stated that he did not anticipate this matter being a practical problem or a long -term situation and assured the Board that, if there is a conflict, the Board would be notified and independent counsels could be retained as needed. It was moved by Member Causey and seconded by Member McGill to authorize the General Manager to execute the waiver. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Nejedly NOES: Members: None ABSENT: Members: Williams SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the meeting of the Enterprise Committee, scheduled for September 9, 2013. 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 Causey Member Causey reported on the August 21 -24, 2013 California Association of Sanitation Agencies (CASA) Conference in San Diego. Member McGill Member McGill and President Nejedly reported on the August 19, 2013 Enterprise Committee meeting and summarized the Action Summary. The Board received the report without comment. Member McGill reported on the August 21 -24, 2013 California Association of Sanitation Agencies (CASA) Conference in San Diego. Member McGill and President Nejedly reported on the September 3, 2013 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. Member McGill reported on the September 4, 2013 East Bay Leadership Council Luncheon with Congressman George Miller. L CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 Member Pilecki Member Pilecki and Member Williams reported on the August 27, 2013 Human Resources Committee meeting and summarized the Action Summary. The Board received the report without comment. Member Pilecki and Member Causey reported on the August 30, 2013 Environmental Services Committee meeting and summarized the Action Summary. The Board received the report without comment. Member Pilecki and Member Causey reported on the August 30, 2013 Capital Projects Committee meeting and summarized the Action Summary. The Board received the report without comment. 2) Announcements Member McGill provided a written report covering Announcements. 9. REAL PROPERTY a. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A NEW LEASE AGREEMENT WITH COUNTY QUARRY PRODUCTS LLC COMMENCING OCTOBER 1, 2013, WITH A POTENTIAL TERM OF NINE YEARS AND THREE MONTHS, THROUGH DECEMBER 31, 2022, FOR CONTINUED OPERATION OF A CONCRETE AND ASPHALT RECYCLING OPERATION ON THE PROPERTY LOCATED AT 5501 IMHOFF DRIVE IN MARTINEZ (APN 159 - 140 -052). At its August 19, 2013 meeting, the Enterprise Committee recommended that the Board authorize the General Manager to execute the lease agreement. Environmental Services Division Manager Danea Gemmell stated that the proposed agreement is for 2 years, with an option for another 7 years and 3 months. The lease rate increased by 8 percent, from $18,411 a month to $19,811 a month, and a new provision was added: a financial penalty of liquidated damages, to entice County Quarry to keep their operation clean and safe. If County Quarry has liquidated damages 4 times annually or 4 times in the first 2 years, the District will not go forward with the other 7 -year term of the lease. President Nejedly observed that County Quarry continues to present a safety hazard, and their trucks must be moved from the road and onto the gravel. It was moved by President Nejedly and seconded by Member McGill to authorize the General Manager to execute a new lease agreement with County Quarry Products LLC commencing October 1, 2013, with a potential term of 9 years and 3 months, through December 31, 2022, for continued operation of a concrete and asphalt 7 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 recycling operation on the property located at 5501 Imhoff Drive in Martinez (APN 159 - 140 -052). Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Nejedly NOES: Members: None ABSENT: Members: Williams 10. BUDGET AND FINANCE a. RECEIVE ADJUSTED OPERATIONS AND MAINTENANCE (O &M) JUNE 2013 YEAR -END FINANCIAL STATEMENTS AND INVESTMENT REPORT (PERIOD 13). On August 12, 2013, Budget and Finance Committee reviewed and recommended the Adjusted O &M June 2013 Year -End Financial Statements and Investment Report for Board receipt. Finance Manager Thea Vassallo reported that revenue over expenses for Period 12 versus Period 13 were a positive, favorable variance of $379,000. The Operations and Maintenance (O &M) budget versus actual was a $1.9 million favorable variance. The total amount under budget was $1,340,000. The Board received the Adjusted O &M June 2013 Year -End Financial Statements and Investment Report. b. RECEIVE CAPITAL IMPROVEMENT BUDGET (CIB) JUNE 30, 2013 YEAR -END STATUS REPORT. On August 30, 2013, the Capital Projects Committee reviewed and recommended the Capital Improvement Budget (CIB) June 30, 2013 Status Report for Board receipt. Capital Projects Division Manager Andrew Antkowiak stated that $32.3 million was budgeted for Fiscal Year 2012 -13 Capital Program activity, and only $26.8 million was spent. Revenues were budgeted at $21.8 million, and $22.3 million was received. Deficit spending was budgeted at $10.5 million, and the actual reduction in Sewer Construction Fund balance was $4.5 million. Mr. Antkowiak noted that the Treatment Plant program was overspent by about $400,000, while the Collection System, General Improvements, and Recycled Water Programs were underspent, due to project delays. The Recycled Water Program in particular was affected by the delayed start of construction for the Concord Landscape Project, resulting in a cost 36 percent under budget. 9 ,*Tin- CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 5, 2013 Member McGill and Member Causey questioned the District's philosophy regarding capacity fees, and it was noted by District Counsel Kent Alm that this would be a good topic for discussion at a later date. The Board received the CIB June 30, 2013 Year -End Status Report. 11. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 12. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Causey suggested that District Counsel Kent Alm provide a report to the Board regarding the philosophy behind the District's Capacity Fee program. 13. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:39 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, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Q