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HomeMy WebLinkAbout04.a.1) Draft minutes of October 17, 2013 Board meetingMINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON OCTOBER 17, 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, October 17, 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 There were no public comments. 3. CONSENT CALENDAR a. Approve minutes of September 19, 2013 Board meeting. b. Approve expenditures dated October 17, 2013. Reviewed by Budget and Finance Committee. C. Adopt Resolution 2013 -035 approving a Road Maintenance Agreement with Norris Canyon Estates Owners Association related to the Norris Canyon Estates Phase IV Development (APN 211 - 210 - 074 -4), and authorizing staff to record the agreement with the Contra Costa County Recorder. It was moved by Member McGill and seconded by Member Causey to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 5. REPORTS a. GENERAL MANAGER 1) Update on Seismic Improvements for Headquarters Office Building (HOB), District Project 8226 This matter was continued from the October 3, 2013 Board meeting. Associate Engineer Nathan Hodges presented construction photos and an update on the nearly complete HOB Seismic Improvements project, whose original contract amount was for $2,807,151. With five change orders, Mr. Hodges reported the total project amount to be $2,929,411, with $2,401,890 paid so far to the general contractor, D.L. Falk. Staff has received 105 requests for information (RFIs) and one stop notice for $157,857 from IBS Steel, the original structural steel provider and installer. D.L. Falk has been notified of the stop notice and is working to resolve it. Mr. Hodges also reported that structural welding has been completed, and the floors, walls, and ceilings have been rebuilt. Plumbing, HVAC, and electrical has been restored, and carpeting will be complete by end of the week. With painting almost finished, cleaning will begin shortly. The related Network Upgrades, District Project 8234, and Fire Protection, District Project 7283, are also nearing completion. The total project work is complete at 95 %, with time expired also at 95 %. Staff anticipates substantial completion by October 31, and November will consist of punch list items and moving coordination for staff to move back to the building in December 2013. Member Pilecki asked if a reopening ceremony has been scheduled, to which Mr. Hodges replied that one has not been planned. 2) Receive Fiscal Year 2012 -13 Household Hazardous Waste (HHW) Collection Facility Annual Report This matter, which was reviewed by Environmental Services Committee, was also continued from the October 3, 2013 Board meeting. Senior HHW Technician Winston Ingram reported that the HHW Program, in its 16" year of operation, is an important element of the District's pollution prevention program, and presented a summary of the Fiscal Year 2012 -13 HHW Program Annual Report. During this fiscal year, over 2 million pounds of waste was collected, the most since the facility has been in operation. Over 433,000 pounds of waste was given away to about 15,000 customers, which comprised 21 percent of the total volume of waste collected and saved the District over $151,000. The total operating cost per car has risen from $87 to $93. An average of 131 cars a day visited the facility on Saturdays, and participation in the Small Business Program was slightly down from 378 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 to 291 customers. This drop was attributed to stabilization of the housing market and use of new, free -to -use PaintCare dropoff sites. PaintCare products totaling 250,197 pounds were collected by the HHW Collection Facility from March 2013 to June 2013, providing rebate and cost savings to the District. Member Causey noted that the Environmental Services Committee has asked staff to explore ways to enhance the participation rates in the San Ramon area. Member Pilecki added that San Ramon's door -to -door program collected 57,000 pounds last year, representing a significant dropoff from the 72,000 pounds collected the prior year. For the 55,000 pounds collected last year, the District's spent about $20,000. For only two additional thousand pounds, San Ramon spent about $150,000. The Environmental Services Committee recommended that staff work with the City of San Ramon to better its collection program. 3) Update on Treatment Plant Surcharge Area Site Characterization - Part 1 — Soil Investigation General Manager Roger Bailey reported that the District's National Pollutant Discharge Elimination System (NPDES) Permit requires completion of a Site Characterization Study of the Treatment Plant Surcharge Fill Area, since the District identified the area as a possible location where future ammonia or nutrient removal treatment equipment would be located. This study would define the presence of contaminated material so a future decision to expand treatment equipment would not be delayed. Environmental Compliance Superintendent Tim Potter provided background on the project, which is the third element of the Nutrient Facility Plan and Site Characterization. He stated that, in the 1960s, the District accepted waste material from Shell Refinery and used it as fill and to stabilize the soil. It was found later that the material was contaminated with organic sludge, lead sulfate, sulfuric acid and tars. Pond A, the Surcharge Fill Area, and Undeveloped Areas were affected. The Department of Toxic Substances Control (DTSC) became the lead agency and performed studies from 1989 to 2002. In 1995, a voluntary cleanup agreement was signed, consolidating the impacted area to Pond A and the Surcharge Fill Area. In 2003, a 12 -inch soil cap was installed, and, in 2004, an enforceable agreement was signed with DTSC, putting land use restrictions on the property. Mr. Potter stated that the objectives of the project are limited to the Surcharge Fill Area, to define the extent of the waste material present for the nutrient studies, and to identify data gaps. WJ CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 4) Announcements The following written announcements were included with the agenda packet: a) Recent Promotions: 1) Glen Bradley promoted to Maintenance Planner effective September 23, 2013 2) Jason Atoigue promoted to Pumping Stations Operator I effective October 1, 2013 3) Rita Cheng promoted to Associate Engineer effective October 2, 2013 b) Recent Personnel Advancement — Janet Weeks advanced to Accounting Technician III effective October 9, 2013 c) Annual Employee Service Awards Luncheon to be held October 23, 2013 d) Reimbursement Account annual notices mailed e) Recap of contracts signed by General Manager during third quarter 2013 Member Causey requested that future contracts recaps include the District Project numbers. The following announcements were distributed at the meeting: f) Address of temporary Concord offices has changed to 1470 Civic Court effective immediately g) District Supports National Medicine Abuse Awareness Month h) Extended Shutdown for Treatment Plant Cogeneration Unit b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm reported that, at the last Board meeting, there was no formal vote on staff and Counsel's recommendation to form an ad hoc committee to negotiate the terms of a lease agreement with CoCo San Sustainable Farm for lease of a portion of the Kiewit property in Martinez. Staff will place an item on a future agenda for the Board to consider forming the committee. It has been past practice that, if stipends are to be paid as they will be to the members of the proposed ad hoc committee, the Board must approve the appointment, as an act of conformance to the Brown Act and the Fair Political Practices Commission (FPPC). Formation and M CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 meetings of this ad hoc committee would be in lieu of having the Enterprise Committee review the lease terms before bringing the matter back to the Board for final consideration. C. SECRETARY OF THE DISTRICT 1) Review draft Board Calendar for 2014 Secretary of the District Elaine Boehme stated that the Board received the draft 2014 Board Calendar in its agenda packets. Similar to prior years, meetings were added for Capital Projects. Workshops, and meetings in July were juggled to accommodate timing for placing Sewer Service Charges on the County Tax Roll. Member Pilecki noted that, at the last rate - setting meeting, the Board discussed holding the next meeting in the evening to allow for more public participation. Member Causey suggested that the rate - setting hearing be held in early 2014, in time for the Accounting Department to put together its Financial Plan. He also noted that the Board may want to hold workshops similar to the upcoming Board Priorities Workshop on an annual basis. 2) Announce District receipt of Transparency Certificate of Excellence from the California Special Districts Association (CSDA) Leadership Foundation Secretary of the District Elaine Boehme announced that the District was recently awarded the Transparency Certificate of Excellence from the CSDA Special Districts Leadership Foundation (SDLF). The Board has been given copies of the application packet, and Stanley R. Caldwell, CSDA Board President and Vice President of the Mt. View Sanitary District Board of Directors, will formally present the certificate to the District at the November 21, 2013 Board meeting. d. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses; future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses Member McGill Member McGill reported on the October 3, 2013 East Bay Leadership Council reception for Transportation Agency Secretary Brian P. Kelly, and the Contra Costa Mayors Conferenced hosted by the City of Clayton later that same day. Member McGill also reported on the Annual Water Environment Federation Technical Exhibition and Conference (WEFTEC) in Chicago held October 5 -9, 5 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 2013, and the October 9, 2013 Industrial Association of Contra Costa County (IACCC) Forum featuring speaker Gary Darling, General Manager of Delta Diablo Sanitation District Member McGill and President Nejedly reported on the October 14, 2013 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. Member Williams Member Williams reported on the Annual Water Environment Federation Technical Exhibition and Conference (WEFTEC) in Chicago held October 5 -9, 2013. He stated his belief that the Board should consider the issue of the Utility of the Future, weighing dollars versus risk, technologies involving digestion and analysis of digestion, and the potential for the District to generate more of its own energy. Member Williams and President Nejedly also reported on the October 15, 2013 Policy Development and Internal Operations Committee meeting. Member Causey noted that, given the proposed transition to paperless agenda packets and use of iPads, perhaps the Board Room should be revitalized and technology upgrades be considered in all aspects of the Board Meetings. 2) Announcements Member McGill provided a written report covering Announcements and other meetings. 6. BUDGET AND FINANCE a. ACCEPT AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2013 —AUDIT PERFORMED BY MAZE & ASSOCIATES The Budget and Finance Committee reviewed the draft financial statements with David Alvey, CPA, of Maze & Associates at its September 30, 2013 meeting and recommended Board acceptance. General Manager Roger Bailey stated that Maze & Associates has completed its first audit of the District's financial statements under its current contract. Maze & Associates had previously served as the District's auditors during Fiscal Years 1991- 95. He introduced Engagement Partner Vikki Rodriguez, CPA from Maze & Associates, to provide an overview of the District's audited financial statements for the fiscal year ended June 30, 2013. Ms. Rodriguez stated that she was pleased to issue the District a clean, unmodified opinion. During the audit, Governmental Accounting Standards Board (GASB) 1.1 None. None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 Statement No. 63 was implemented, whose only impact to the report was the change in title of "net assets" to "net position." The District's net income was found to be $9.1 million, and the audit was smooth, with accurate and timely responses from District staff. All reporting was found to be in compliance with Generally Accepted Accounting Principles (GAAP) and GASB Statements, and there was no indication of errors or misuse of funds. Internal controls were found to be adequate. Her firm had one comment on inventory, but it was not a significant deficiency. No material weaknesses were found, nor were there any significant deficiencies to report to the Board. Member Causey stated that he had questions, but they related more to the policies of the District than the audit itself. He requested that potential outside investment opportunities other than Local Agency Investment Fund (LAIF) be evaluated. Member McGill recalled that the Budget and Finance Committee has considered it in the past, but could reconsider it. Member Causey also noted that it might be worthwhile to review the contract with the City of Concord for flexibility in asking them to make regular, quarterly payments, even if on an estimated basis, for better cash flow. General Manager Roger Bailey stated that a summary of the major contract stipulations could be presented to the Board. The Board accepted the audited financial statements for the fiscal year ended June 30, 2013. Motion passed by unanimous vote of the Board. 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 8. SUGGESTIONS FOR FUTURE AGENDA ITEMS 9. ANNOUNCEMENT OF CLOSED SESSION District Counsel Kent Alm announced that no closed session was needed for Item 10.a. 10. CLOSED SESSION The Board did not hold the scheduled Closed Session on the following matter: 7 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of October 17, 2013 a. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b): None. • One Potential Case — California River Watch 11. REPORT OUT OF CLOSED SESSION 12. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:40 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 0