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HomeMy WebLinkAboutBOARD MINUTES 06-03-04 241 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JUNE 3, 2004 The District Board of the Central Contra Costa Sanitary District convened in a regular session at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on June 3, 2004. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: ABSENT: Menesini, Boneysteele, Hockett, Lucey Members: Nejedly Member Nejedly had advised staff that he would be unable to attend this meeting and had requested to be excused. a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS . INTRODUCE JAMES RICK GINN NEWLY HIRED UTILITY WORKER . INTRODUCE MARK LAFFERTY. NEWLY HIRED UTILITY WORKER . INTRODUCE HARRY WYLES. NEWLY HIRED UTILITY WORKER . INTRODUCE STEVE HUDSON. NEWLY HIRED PLANT OPERATOR II Utility Workers James (Rick) Ginn, Mark Lafferty, and Harry Wyles, and Plant Operator II Steve Hudson were introduced and welcomed to the District by President Lucey and the Board of Directors. 2. PUBLIC COMMENTS President Lucey noted that a member of the public wishes to address the Board on Item 8.a.3), Reports. There being no objection, President Lucey proceeded to Item 8.a.3), Reports. a. 8. REPORTS GENERAL MANAGER 3) Mr. Charles W. Batts, General Manager, stated that on Saturday, May 22, 2004, the District had a sewer overflow at the San Ramon Pumping Station. At approximately 7:00 p.m., sewage spilled into the street from two manholes and from the station overflow, a low point which is a storm drain located in the southwest corner of the station. The overflow was due to the accidental closure of the station's influent gate. This is a valve at the front end of the station that is used to stop the flow into the station's wet well. It is used to protect the station from flooding and for maintenance work. The station lost about 40,000 gallons of flow, with most going into the creek by the adjacent Iron Horse Trail. The two manholes that overflowed are part of the collection system serving the surrounding neighborhood, and not part of the trunk sewer from the Dougherty Valley. Those manholes are close to the same elevation as the 06 0,- ..~ 04 242 06 station's overflow point, so sewage also flowed into the street. This portion of the overflow went down both sides of Mangos Drive in the gutters, and flowed through the storm drains to the creek. The news story was in Tuesday's Contra Costa Times, and Wednesday's Tri-Valley Herald. Obviously, the District staff is deeply apologetic and terribly embarrassed by this incident. As the Board knows, the District built a state-of-the-art pumping station to provide the best and most reliable service to the San Ramon community. As part of the settlement agreement with the City of San Ramon, the station construction was expedited so that additional construction periods over the next several years could be avoided. The cause of the overflow was the closing of the influent gate to the station. The investigation to date indicates that the gate closed on a computer-generated signal, most probably caused by a voltage spike, that was not initiated by any operations or an alarm condition. The computer log summary shows no such command, and the gate had no mechanical defects. Staff has changed out and will replace the station's computer and staff has altered the station's alarm package to notify the District of such a future condition. The new Supervisory Control and Data Acquisition (SCADA) system now has the ability to require a time interval for initiating a gate closure signal to prevent transient signal problems. This feature was not on the existing system. Staff is also "locking out" the influent gate mechanically so that only an on-site operator can close it until all necessary safeguards are in place. The design of the station incorporates an influent gate, which is typical in all the District's large pumping stations. Initially, a gate closure was to be remotely alarmed to the treatment plant; however, it was only locally alarmed at the station when the overflow occurred. The existing station alarm system has 24 alarm inputs. When the gate became operational late in the construction process, all 24 alarm inputs were used for other critical equipment. The alarm strategy in place before May 22 was based on the fact that for the influent gate to close, one of the redundant high wet well level signals would alarm in the station and at the treatment plant. As the wet well was pumped down a low wet well level, a condition that was also alarmed to the treatment plant, the control system would open the gate, allowing the collection system to flow into the station. On May 22, the gate closed without a high wet well level signal, and there was no notification through the alarm package to the treatment plant. The gate also did not completely seal. An estimated 450 gallons per minute of flow came into the station through the gate. This is an issue that is still to be corrected by the construction contractor. The result of this leakage was that the low wet well level signal was not activated, and the gate remained shut. As a safeguard suggested by Operations and installed by Engineering, but not part of the original design, an agreement was reached with Dublin San Ramon Services District (DSRSD) to connect a bypass to their sewer system on the other side of the creek from the station. While this system has somewhat limited capacity, it would provide an alternate place for the wastewater to flow in an emergency. This bypass system was not available to the District on May 22 as the downstream line was out of service for repair by DSRSD at the time of the overflow. Since the overflow, DSRSD has completed their work and the system is again operational. The Pumping Station personnel knew of these issues, and were in the process of addressing them. Mr. Batts stated that the City of San Ramon staff specially asked about the busy signal at the telephone number for emergency response, and the apparent delay in the District response time. The response telephone number at the pumping station is the treatment plant supervisor's telephone that is staffed 24 hours a day. The first call about the overflow 03 04 243 came into the plant supervisor at 7:05 p.m. from Mrs. Sandy Barclay, a local resident and pumping station neighbor. After that call, the supervisor used that telephone to call the pumPing station on-call operator to respond, and then called the PUmping Stations Superintendent, and the Collection System Operations (CSO) overflow emergency number to report the problem and to initiate the cleanup process. There were also several calls to the regulatory agencies, and feedback to the responding personnel. Other callers may have gotten a busy signal. The Pumping Station Operator responded right away, and the CSO on-call crew reported to the Walnut Creek yard to get the proper equipment. That said, District staff is reviewing the telephone procedure to see if it needs to be revised based on the experience gained in this event. Mr. Batts stated that there were also questions about the length of time for the cleanup crew to respond to the overflow. While District records indicate the Pumping Station Operator arrived at the station at 7:45 p.m. to assess and address the problem, the cleanup personnel did not arrive until 9:00 p.m. The CSO on-call crew knew a first responder was on the way to the site, so they went directly from their homes in Antioch to the CSO yard to get the vehicles and equipment needed for the cleanup before proceeding to San Ramon. They had to stop in route to load the hydrovacs with clean water from a fire hydrant. The operator stopped the overflow immediately upon his arrival, and the CSO crew worked until nearly 1 :00 a.m. to clean up the street, the pumping station, and the overflow into the nearby creek. District personnel continued cleanup activities, water testing, and creek inspection on Sunday. Members of the District Board of Directors visited the site Sunday and Monday. This incident is indeed unfortunate. Hopefully, the District can rebuild trust with the San Ramon community, and continue cooperative efforts with San Ramon City staff. Mr. Batts stated that the District understands the deep concern of the community and is working to regain their confidence. Staff met with City and local response agencies last Friday to discuss the incident, work toward faster response and response coordination, and report on cleanup activities. The District will continue meeting with both the City and Regional Water Quality Control Board staff to resolve any outstanding issues from this incident. Ms. Christa Freihofner, representing the South San Ramon Neighborhood Organization, addressed the Board. Ms. Freihofner thanked President Lucey, Member Hockett and District staff that attended the San Ramon City Council meeting. Ms. Freihofner stated that all of the newspapers carried the overflow. It was the District's responsibility to address this situation. Those who attended the City Council meeting were quite surprised that District representatives were not given that opportunity. Ms. Freihofner stated that her neighborhood was concerned with two overflows in two years. It will be difficult to believe anything the District can say with this pumping station in the neighborhood. Residents were lucky the overflow didn't happen in the morning when people were sleeping. There seems to be discrepancies in the time it took to respond. Ms. Freihofner suggested that a 24-hour emergency number be added in the telephone book. Being able to contact a real person immediately in case of emergency is good customer service and that service is warranted. Ms. Freihofner stated that she talked to Dublin San Ramon Services District (DSRSD) and they would be willing to work out a cooperative agreement to respond to emergencies in the future since they are closer. Member Boneysteele stated that he visited the site on Sunday. Member Boneysteele stated that he realized as he traveled to the site, that the San Ramon Pumping Station is a long ways. The pumping station is 15 miles from the District's CSO yard on Springbrook Road in Walnut Creek and 22 miles from the treatment plant in Martinez. Member Boneysteele thanked 06 U' (. ';j 04 244 Ms. Freihofner for making the 45-mile round trip to address the Board. Member Boneysteele stated that he agrees wholeheartedly with Ms. Freihofner's thoughts that perhaps an emergency response cooperative agreement could be developed with DSRSD, as it is only 5 miles from DSRSD to the pumping station. Member Menesini apologized for not being at the San Ramon City Council meeting, indicating that he would have attended had he known about it. With the accident having happened, it is now the District's responsibility to make reparations. Member Menesini stated that he has given that considerable thought and talked to staff about what the District might do for the community. Member Menesini thanked Ms. Freihofner for coming today and for her insightful comments. President Lucey stated that he thinks he speaks for the entire Board when he says that we are embarrassed and apologetic. President Lucey thanked Ms. Freihofner for her comments. Ms. Freihofner stated that she will pass that on. At this time, President Lucey reverted to the order of the agenda. 3. AWARDS AND COMMENDATIONS a. RECEIVE AWARD - 2004 CONTRA COSTA COUNTY INDUSTRY PARTNER OF THE YEAR IN THE ENVIRONMENTAL SCIENCES INDUSTRY CLUSTER; AND RECOGNITION OF AWARD BY JOE CANCIAMILLA. ASSEMBL YMEMBER. 11TH DISTRICT Mr. Batts, General Manager, stated that the District and Cal State Hayward have co- sponsored an Environmental Sciences Collaborative. The purpose of the collaborative is to work with industry and education partners to strengthen existing and emerging environmental-based education programs in Contra Costa County. The District has helped guide the collaborative, and has hosted its meetings over the past year. To recognize these efforts, the Contra Costa Council/Contra Costa Economic Partnership awarded the District its Industry Partner of the Year Award. Mr. Batts introduced Ms. Darlene Ross, Human Resources Analyst, who stated that it is a pleasure to present this award to the Board. Ms. Ross stated that she, Board Member Mario M. Menesini, and Communication Services Manager Harriette Heibel have served for the past year on the Environmental Sciences Collaborative. Member Menesini has co-chaired the group. The goal of the Environmental Sciences Collaborative by forming a partnership with private and public agencies in the County including high schools and two- and four- year colleges is to assist industries by developing necessary curriculum so in the future highly trained technical employees will be available in the workforce. Ms. Ross presented the 2004 Contra Costa County Industry Partner of the Year Award in the Environmental Sciences Industry Cluster and the certificate recognizing that award by Joe Canciamilla, Assemblymember, 11 th District, to President Lucey and the Board of Directors. On behalf of the Board of Directors, President Lucey accepted the award and certificate, and thanked Dr. Menesini, Ms. Ross, and Ms. Heibel for their efforts. 4. CONSENT CALENDAR It was moved by Member Hockett and seconded by Member Boneysteele, that the Consent Calendar, consisting of Items a. through f., be approved as recommended, resolutions adopted as appropriate, and recordings duly authorized. 06 03 04 245 a. Public sewer improvements and an Offer of Dedication were accepted from C&Z Equity Investment Company for an easement shown on the recorded final map of Subdivision No. 7301 in the Town of Moraga, Job 5222, Parcel 1; staff was authorized to record the easement acceptances with the Contra Costa County Recorder; and Resolution No. 2004-036 was adopted to that effect. Motion approved on the following vote: AYES: Members: Hockett, Boneysteele, Menesini, Lucey NOES: Members: None ABSENT: Members: Nejedly b. Public sewer improvements and an Offer of Dedication were accepted from Burnham Pacific, Crescent Plaza, for an easement shown on the recorded final map of Subdivision No. 8240 in the City of Pleasant Hill, Job 5339, Parcel 1; staff was authorized to record the easement acceptances with the Contra Costa County Recorder; and Resolution No. 2004-037 was adopted to that effect. Motion approved on the following vote: AYES: Members: Hockett, Boneysteele, Menesini, Lucey NOES: Members: None ABSENT: Members: Nejedly c. Resolution No. 2004-038 was adopted, confirming publication of District Ordinance No. 230, an ordinance to amend District Code Section 6.20.300 Schedule of Reimbursement Fees to establish Reimbursement Fees applicable to properties that directly connect to Project 5332 (Shell Ridge Trail, Walnut Creek); Project 5427 (Camelia Lane, Lafayette); Project 5542 (Camino Monte Sol, Alamo) or Project 5156 (South Avenue, Alamo) Standard Sewer Facilities, or are tributary to Projects 5156,5252, and 5278 (Lawrence Road, Danville) Special Sewer Facilities. Motion approved on the following vote: AYES: Members: Hockett, Boneysteele, Menesini, Lucey NOES: Members: None ABSENT: Members: Nejedly d. The request by Derhyl Houck, Maintenance Technician III, Mechanical, for an emergency withdrawal of $14,000 from the Deferred Compensation Plan, was approved as recommended by the Deferred Compensation Plan Advisory Committee. Motion approved on the following vote: AYES: Members: Hockett, Boneysteele, Menesini, Lucey NOES: Members: None ABSENT: Members: Nejedly e. An extension of medical leave of absence without pay was authorized for Derhyl Houck, Maintenance Technician III, Mechanical, through July 30,2004. Motion approved on the following vote: 06 03 04 246 AYES: Members: Hockett, Boneysteele, Menesini, Lucey NOES: Members: None ABSENT: Members: Nejedly f. An extension of medical leave of absence without pay was authorized for Elaine Jacobs, Household Hazardous Waste Supervisor, through August 17, 2004. Motion approved on the following vote: AYES: Members: Hockett, Boneysteele, Menesini, Lucey NOES: Members: None ABSENT: Members: Nejedly 5. HEARINGS a. CONDUCT CONTINUED PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO AMEND DISTRICT CODE SECTION 6.20.300 SCHEDULE OF REIMBURSEMENT FEES. TO ESTABLISH REIMBURSEMENT FEES APPLICABLE TO PROPERTIES THAT ARE TRIBUTARY TO THE PROJECT 5503 SEWER Mr. Batts, General Manager, stated that on April 1, 2004, the Board conducted a public hearing to consider reimbursement fees for eight projects. One property owner on Crest View Court in Orinda objected to the fees proposed for Project 5503. The Board removed Project 5503 from the District Code amendment approved at that time and continued the hearing with regard to Project 5503 to a later date. Shortly after the public hearing, staff met with the property owner to discuss his concerns, and he has now withdrawn his objection and has submitted a letter to that effect. At 2:29 p.m., President Lucey opened the continued public hearing to receive comments on a proposed ordinance to amend District Code Section 6.20.300 Schedule of Reimbursement Fees, to establish reimbursement fees applicable to properties that are tributary to the Project 5503 sewer. Receipt was noted of a letter dated June 1, 2004 from Mr. Paul Bledsoe, withdrawing his objection, and supporting the reimbursement schedule as proposed. There being no other correspondence or comments, President Lucey closed the public hearing. It was moved by President Lucey and seconded by Member Hockett, that Ordinance No. 231 be adopted, amending District Code Section 6.20.300 Schedule of Reimbursement Fees, to establish reimbursement fees applicable to properties that are tributary to the Project 5503 sewer. Motion approved on the following vote: AYES: Members: Lucey, Hockett, Menesini, Boneysteele, NOES: Members: None ABSENT: Members: Nejedly 06 0- Cb... ~ O,.ir.Lj.'; .!', ~ 247 b. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE 2004-2005 OPERATIONS AND MAINTENANCE BUDGET. DEBT SERVICE FUND BUDGET. AND SELF-INSUBANCE:;FUND BUDGET AND FOR THE ESTABLISHMENT OF THE 2004-2005. 2005-2006. AND 2006-2007 SEWER SERVICE CHARGE RATES. AND ON PLACING CURRENT SEWER SERVICE CHARGES ON THE COUNTY TAX ROLL FOR COLLECTION Mr. Batts, General Manager, stated that District Code and State law require holding a public hearing for the establishment of the Sewer Service Charge rates and for placing the rates on the tax rolls for collection. Although not required by law, the District will also hold a public hearing to receive comments on the 2004-2005 Operations and Maintenance (O&M) Budget, Debt Service Fund Budget, and Self Insurance Fund Budget. The Board will be asked to approve the 2004-2005 O&M Budget, Debt Service Fund Budget, and Self Insurance Fund Budget; to adopt an ordinance establishing the Sewer Service Charge rate for three years; and to adopt a resolution authorizing collection of the 2004-2005 Sewer Service Charges on the County tax rolls. Mr. Batts introduced Ms. Deborah Ratcliff, Controller, who stated that the budgets before the Board were calculated based on a proposed Sewer Service Charge increase of $8 in 2004-2005 for a total of $280 per residential unit, allocating $204 to O&M and $76 to the Sewer Construction Fund to partially offset the deficit spending budgeted in the Capital Improvement Budget. An $8 Sewer Service Charge increase for fiscal year 2004-2005 would generate approximately $1.25 million additional revenue to be allocated between O&M and the Sewer Construction Fund. In years two and three, a Sewer Service Charge increase of $8 and $9 respectively is recommended. Ms. Ratcliff reviewed the 2003-2004 O&M Budget compared to the 2004-2005 O&M Budget, showing that total revenues are projected to decrease 2 percent to $42 million and total expenses are projected to decrease 0.3 percent to $43.9 million. The fund balance at June 30, 2005 is projected to decrease by $1.75 million to $8,997,000. Ms. Ratcliff stated that there would have been approximately $1 million or 2.2 percent increase in 2004-2005 if ad valorem tax revenue were not being shifted to establish the Debt Service Fund. Ms. Ratcliff reviewed key increases from the 2003-2004 O&M Budget to the 2004-2005 O&M Budget. Ms. Ratcliff stated that a new fund, the Debt Service Fund, will be established in 2004- 2005 to collect all the revenues and expenses related to debt service in one place. In 2004-2005, Debt Service Fund revenue, made up entirely of ad valorem tax revenue, is budgeted at $3,905,000. Debt Service Fund expenses include interest expense of $1,775,000 and principal payments of $2,125,000 for total expenses in 2004-2005 of $3,901,000. It is projected that a net of $4,000 will be returned to the Sewer Construction Fund at year end. Ms. Ratcliff stated that bond service for last year was $3.3 million. This was interest only for the first year for the 2002 bonds, so this figure will be a little higher this year. Ms. Ratcliff stated that if the District loses more than 50 percent of its ad valorem tax revenue which was budgeted in 2004-2005, revenue from Sewer Service Charges will be allocated to cover debt service payments. Ms. Ratcliff reviewed the 2004-2005 Self Insurance Fund Budget, stating that revenues are budgeted at $323,000 in 2004-2005 and expenses are budgeted at $1,073,000, resulting in a decrease in Self Insurance Fund reserves of $750,000. At June 30, 2005, the Self Insurance Fund balance is budgeted to be $3,121,474. Ms. Ratcliff stated that the budgets before the Board were calculated based on a proposed Sewer Service Charge increase of $8 in 2004-2005 for a total of $280 per residential unit, allocating $204 to O&M and $76 to the Sewer Construction Fund to partially offset the deficit spending budgeted in the Capital Improvement Budget. In years two and three, Sewer Service Charge increases of $8 and $9 respectively are recommended, for a 2005-2006 Sewer Service Charge rate of $288 and a 2006-2007 Sewer Service Charge rate of $297. At 2:40 p.m., President Lucey opened the public hearings to receive public comment on the 2004-2005 O&M Budget, Debt Service Fund Budget, and Self Insurance Fund Budget; for the establishment of the 2004-2005, 2005-2006, and 2006-2007 Sewer 06 Oð 04 248 Service Charge rates; and on placing the 2004-2005 Sewer Service Charges on the County tax roll for collection. It was noted that the following written correspondence was received and considered by the Board: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 06 Electronic mail received April 9, 2004 from Mr. Ralph Wood, 164 Springside Road, Walnut Creek, supporting the proposed increase. Letter received April 12, 2004 from Mr. Doug Crawford, 3187 Lucas Drive, Lafayette, supporting the proposed increase. Letter received April 14, 2004 from Dr. Evaldo L. Kothny, 3026 Stinson Circle, Walnut Creek, supporting the proposed increase. Electronic mails received April 8 and 9, 2004 from M. Little, 104 Brookline Street, Moraga, opposing the proposed increase. Electronic mail received April 8, 2004 from Mr. Elroy F. Holtmann, 3144 Ramada Court, Lafayette, opposing the proposed increase. Letter received April 9, 2004 from Mr. and Mrs. A. E. Givens, P. O. Box 769, Alamo, opposing the proposed increase. Electronic mail received April 22, 2004 from Ms. E. Katherine Hall, Walnut Creek, opposing the proposed increase. Electronic mail received April 13, 2004 from Mr. James Qiu, 332 Mare Lane, San Ramon, opposing the proposed increase. Electronic mail received April 13, 2004 from Mr. Mike Favetti, Martinez, opposing the proposed increase. Letter received April 16, 2004 from Ms. Millie Woodruff, 349 Scarlet Oak Court, Pleasant Hill, opposing the proposed increase. Electronic mail received April 16, 2004 from Ms. Alice Keane, opposing the proposed increase. Electronic mail received April 19, 2004 from Gurdip Birdee, opposing the proposed increase. Electronic mail received April 22, 2004 from Ms. Paige Meyer, opposing the proposed increase. Electronic mail received April 26, 2004 from Mr. Frank Burroughs, 1637 Siskiyou Drive, Walnut Creek, opposing the proposed increase. Electronic mail received April 26, 2004 from Ms. Annette Poon, Walnut Creek, opposing the proposed increase. Electronic mail received May 5, 2004 from Mr. Mike Gray, 438 Odin Drive, Pleasant Hill, opposing the proposed increase. Electronic mail received May 11, 2004 from Ms. Christine Armson, opposing the proposed increase. Electronic mail received May 16, 2004 from Mr. John Fitzgerald, opposing the proposed increase. 03 O. J~ ,I i ":it 19) 20) 21 ) 22) 23) 24) 25) 249 Postcard received June 1, 2004 from Ms. Gloria S. Duffy, Viking Park Apartments, 2095 Norse Drive, Pleasant Hill, opposing the proposed increase. Electronic mail received April 11, 2004 from Mr. Ulrich Luscher, indicating that the language regarding inflationary cost increases was misleading. Electronic mail received April 13, 2004 from Mr. Carl McCormick, confusing the proposed Sewer Service Charge increase with garbage rates. Electronic mail received April 24, 2004 from Ms. Nancy Caranica, confusing the proposed Sewer Service Charge increase with garbage rates. Electronic mail received May 26, 2004 from Tom and CZ Turner, confusing the proposed Sewer Service Charge increase with garbage rates. Electronic mail received June 2, 2004 from Ms. Carol Reade, 208 Poshard Street, Pleasant Hill, indicating that the language regarding inflationary cost increases was misleading and questioning what will be done if the rate of inflation is greater than 3 percent. Postcard received June 2, 2004 from Ms. Margaret Nichols, 2408 Pinnacle Drive, Martinez, confusing the proposed Sewer Service Charge increase with garbage rates. There being no comments, President Lucey closed the public hearing. Following discussion, it was moved by Member Hockett and seconded by Member Menesini, that the 2004-2005 Operations and Maintenance Budget, Debt Service Fund Budget, and Self Insurance Fund Budget be approved; that an $8 increase in the Sewer Service Charge for 2004-2005 to $280 per year, an $8 increase in the Sewer Service Charge in 2005-2006 and a $9 increase in the Sewer Service Charge in 2006-2007 be approved and that Ordinance No. 232 be adopted to that effect; and that Resolution No. 2004-039 be adopted, authorizing collection of the 2004-2005 Sewer Service Charges on the County tax roll. Motion approved on the following roll call vote: AYES: Members: Hockett, Menesini, Boneysteele, Lucey NOES: Members: None ABSENT: Members: Nejedly Member Boneysteele commended staff on the quality of work that went into the budget preparation and rate setting process, including the presentation and summary of correspondence received. 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 8.a.3) Report on San Ramon Pumping Station Overflow, was taken out of order earlier in the agenda to accommodate interested persons in the audience. a. 7. BIDS AND AWARDS AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO K. J. WOODS CONSTRUCTION. INC. FOR M3 SAG RENOVATION. DP 5630 Following explanation by Mr. Batts, General Manager, it was moved by Member Hockett and seconded by Member Menesini, that award of a construction contract in the amount of $628,000 for the M3 Sag Renovation, DP 5630, be authorized to K. J. Woods 06 o~ 04 250 Construction, Inc., the lowest responsive and responsible bidder. There being no objection, the motion was approved with Member Nejedly being absent. Member Menesini expressed interest in visiting the site. Staff indicated they would notify Member Menesini when work in being done. b. AUTHORIZE AWARD OF A CONSTRUCTION CONTRACT TO KAWEAH CONSTRUCTION COMPANY FOR THE CONSTRUCTION OF THE PIPING RENOVATIONS AND REPLACEMENT PROJECT. PHASE 2. DP 7208 It was moved by President Lucey and seconded by Member Hockett, that award of a construction contract in the amount of $836,638 for the Piping Renovations and Replacement Project, Phase 2, DP 7208, be authorized to Kaweah Construction Company, the lowest responsive and responsible bidder. There being no objection, the motion was approved with Member Nejedly being absent. c. REJECT ALL BIDS FOR THE ROSSMOOR SEWER IMPROVEMENT PROJECT. PHASE 9. DP 5724 Mr. Batts, General Manager, stated that on May 4, 2004, bids were opened for the Rossmoor Sewer Improvement Project, Phase 9. Staff recommends that the Board reject all bids for this project because of a potential legal issue concerning the low bidder that arose after the bids were opened. Because there is the issue of potential litigation, it is recommended that the Board discuss this item in closed session. President Lucey asked if anyone was present in the audience representing K. J. Woods Construction Company, Advantica, Inc., or British Gas. Hearing none, President Lucey proceeded to Item 14., Closed Session. 14. CLOSED SESSION a. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. One potential matter is to be discussed. At 2:49 p.m., President Lucey declared the closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b) as noted above. At 2:59 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. President Lucey returned to Item 7.c., Bids and Awards. 7. BIDS AND AWARDS c. REJECT ALL BIDS FOR THE ROSSMOOR SEWER IMPROVEMENT PROJECT. PHASE 9. DP 5724 It was moved by Member Menesini and seconded by Member Hockett, that all bids for the Rossmoor Sewer Improvement Project, Phase 9, DP 5724, be rejected and that staff be authorized to rebid the project. There being no objection, the motion was approved with Member Nejedly being absent. 06 03 04 a. 251 8. REPORTS GENERAL MANAGER 1) Mr. Batts, General Manager, reported that discussion is surprisingly quiet on the State budget. Legislative meetings on the budget are just beginning. It is interesting to note that under Gray Davis, State budget cuts were protested by interest groups to the politicians. The latest strategy is for interest groups, mainly education and health and welfare advocates, to take their case to the people in newspaper ads. The interest groups are proposing a higher income tax rate on wealthiest Californians. Republican lawmakers are also upset by Governor Schwarzenegger's reversing cuts to health and welfare programs. On the property tax side, there is little to report. Of significance is the Legislative Analyst's Office release of their report on the Governor's local government proposal. Their substitute plan would exempt cities and counties from the property tax shift, retain the two-year shift for redevelopment agencies, permanently take $220 million from special districts (mainly from enterprise districts), and provide for implementation by the County Boards of Supervisors. This proposal would generate significantly less revenue for the State. 2) Mr. Batts, General Manager, stated that in District project construction estimating, the engineer's estimate is a requirement for public bidding. An engineer's estimate must be posted when a project is advertised. This estimate is used both for internal budgeting purposes, and also by bidders to gauge the size or complexity of the project, and whether the project may be of interest to them. The practice of estimating project costs is always a challenge. From a planning perspective, the District's goal is to have estimates be reflective of the actual construction costs. Due to the variability of the bidding climate, driven by such things as material shortages, fuel prices, labor shortages, number of bidders, and competing projects, the accuracy of estimates varies from project to project. This year, while the District has experienced a wide range between estimates as compared to actual bids, on average actual construction bids are tracking about 16 percent or $2 million less than estimated construction costs. A summary of construction cost estimating performance was distributed for the Board's information. The good news is overall the engineer's estimates indicate that on average the District has obtained excellent pricing on District projects bid this year. 3) The report on the San Ramon Pumping Station overflow was taken out of order earlier in the agenda. 4) Mr. Batts, General Manager, stated that on Friday, May 21, 2004, the treatment plant's cogeneration turbine unexpectedly failed. This particular turbine had been in operation for one and a half years. A replacement turbine was installed on May 31 and the unit was returned to service on the morning of June 1. Mr. Batts introduced Mr. Craig Mizutani, Associate Engineer, to provide a brief presentation on the details of the failure and the rapid response by Solar Turbine to find and install another turbine. Mr. Mizutani stated that with the record high oil prices, PG&E power is at $0. 1 05/Kwh. The District cost of cogeneration power is $0.061/Kwh (natural gas cost is $5.14 per decatherm and includes value of steam) for an annual savings to the District (less the maintenance contract) of $950,000. Mr. Mizutani stated that the Solar Turbine contract is a five- year agreement that was signed in December 2000 and will be up for renewal in 2005. The contract calls for 95 percent availability (18 days per year down time) and includes an incentive or penalty clause. There are four scheduled maintenance shutdowns per year. Solar is responsible for unscheduled maintenance repairs. The District pays a bonus if Solar meets the 95 percent availability limit and they are penalized if they do 06 03 04 252 5) 6) 7) 8) 9) 10) not. Mr. Mizutani noted that Solar has received the bonus seven of the last ten years. Mr. Mizutani stated that the cogeneration unit failed on May 21, 2004. As Mr. Batts indicated, the turbine had been in service for one and a half years. The replacement unit was installed and operational by 10:00 a.m. on June 1, 2004. The District was able to get the turbine back up and running so quickly because of the excellent response by Solar Turbine and District staff. Because of the quick replacement, the District will not have an increased demand charge for June. The unit was replaced under the current maintenance agreement with Solar Turbine at no charge to the District. Discussion followed with regard to the cause of the failure. Mr. Mizutani showed photographs of the blade that failed and the damage that it caused. Mr. Batts, General Manager, announced that the Rossmoor Sewer Improvements Project, Phase 9, will be rebid. This project consists of installation of pipe by pipe bursting and open cut, construction of manholes, rerouting sewer laterals, and relocation of a 6-inch sewer line. The engineer's estimate is $315,000. Mr. Batts, General Manager, announced that the District is advertising for bids for the Television Inspection of Sanitary Sewers Project, Phase 3. The work is a one-year service contract that provides the continued TV inspection for the District-wide assessment of the sewer system. The estimated quantity of sewer to be inspected is approximately one million feet. Mr. Batts, General Manager, announced that the District is advertising for bids for the Cow Creek Crossing Renovations Project, DP 5672. This is a 12-inch sanitary sewer that crosses Cow Creek within the Town of Danville. Over the last several years the creek has eroded away the bank undermining one of the manholes. The manhole was temporarily reinforced last December to get through the winter storms. The project will re-grade the channel to its original configuration and place riprap on the bank to protect the manhole in the future. The engineer's estimate for construction of the project is $35,000. The Town of Danville is working with the District on restoration. Mr. Batts, General Manager, announced that a public workshop on the Vessing Road Project will be held on June 14, 2004, at 7:00 p.m. at the Pleasant Hill City Hall. Mr. Batts, General Manager, announced that Communication Services Manager Harriette Heibel was requested to make a presentation to the Regional Water Quality Control Board on the District's student education program. On May 19, 2004, Ms. Heibel provided information on Central San's Water Wizards 3rd and 5th grade programs, the Sewer Science high school laboratory program, and the District's plant tour program. The Regional Board was impressed with the District's innovative programs, especially commending the District for providing these programs without a "fine incentive." They said they wished other agencies would provide the same caliber of programs. Mr. Batts, General Manager, provided an update on Assembly Bill 55, relating to County Employee Retirement. If adopted by the County Board of Supervisors, it would allow members of the county retirement system to buy five years of additional unearned service credit if they are vested in the retirement system. The bill indicates that this benefit would be cost- neutral to the employer. The Contra Costa County Employee Retirement 06 U;.. <"'... .~ (r!¡~ /M U-l: 11) 253 Association (CCCERA) Board considered AB 55 at their last meeting. The item was tabled. The County is not interested in pursuing an additional retirement benefit at this ~irne:~~,wnty Administrator John Sweeten wrote a letter to the CCCERA Board indicating that the County does not intend to participate in this unearned retirement credit program for two reasons: 1) It is not possible to ensure that this benefit will not have additional costs for future retirees; and 2) This is a benefit which is subject to meet and confer and there has been no formal request to do so. Mr. Batts stated that staff will continue to monitor this bill and will inform the Board of any developments. Mr. Batts, General Manager, invited the Board to attend the District Open House on June 19,2004. Invitations were distributed. b. COUNSEL FOR THE DISTRICT None c. SECRETARY OF THE DISTRICT None d. BOARD MEMBERS 1) 2) 3) 4) Member Hockett, Chair of the Recycled Water Committee, reported that she and President Lucey met with staff on May 25, 2004. Member Hockett distributed and reviewed notes from that meeting, at which topics of discussion included extension and modification of the Contra Costa Water District General Agreement, an update on a potential District/East Bay Municipal Utility District joint project, discussion of the District's connection fee policy, an update on efforts to secure an O&M services agreement, and a customer operations update. Member Hockett reported on the June 3, 2004 meeting hosted by East Bay Municipal Utility District Board Member John Coleman. Member Boneysteele, Chair of the Budget and Finance Committee, stated that he and Member Menesini reviewed the expenditures and found them to be acceptable. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated June 3, 2004, including Self Insurance Check Nos. 102104-102107, Running Expense Check Nos. 150245-150423, and Sewer Construction Check Nos. 26729-26764, be approved as recommended. There being no objection, the motion was approved with Member Nejedly being absent. Member Menesini, Chair of Outreach Committee, reported that he and Member Nejedly met with staff on May 27, 2004. Member Menesini distributed and reviewed notes from that meeting, at which topics of discussion included an update on construction project outreach, dental informational permitting, the FOG (Fats, Oils and Grease) Pilot Program, a request from the Central Contra Costa Solid Waste Authority to contribute and participate in a telephone directory tab on recycling, the District's tour brochure that will be used for the upcoming open house, the CCCSD Community Outreach report for the period January through March 2004, and discussion of the recent San Ramon Pumping Station overflow in terms of an opportunity for directing fine monies to an education program or creek testing program that would be of benefit to the District as well as the benefit of San Ramon. 06 03 04 254 Mr. Batts stated that a suggestion was made by the Board Outreach Committee Members that the District consider waiving the Dental Informational Permit fees. This item will be brought to the Board at the next Board Meeting. Mr. Batts stated further that with regard to Ms. Christa Freihofner's suggestion for a 24-hour telephone service, the District does have two emergency lines that are staffed 24 hours a day 7 days a week and they are listed in the telephone book. 5) President Lucey thanked staff for the outstanding employee-sponsored event, Shine and Show at CSO, stating that the vehicles, the food, and the music were all terrific. 6) President Lucey stated that with the Board's permission, he would request that a letter be sent to California Association of Sanitation Agencies (CASA) Executive Director and Lobbyist Michael Dillon, commending him for his efforts with regard to Senate Bill 1272 (Ortiz) - Special District Governance. The Board concurred. 7) President Lucey requested that staff investigate installation of a series of lights at Board Members' places in the Board Room for use by the Board President to easily identify Board Members wishing to speak. 9. CORRESPONDENCE a. LETTER DATED MAY 26.2004 FROM MS. CHRISTA FREIHOFNER OF SAN RAMON. CONCERNING THE OVERFLOW AT THE SAN RAMON PUMPING STATION The Board noted receipt of the letter dated May 26, 2004 from Ms. Christa Freihofner of San Ramon, concerning the overflow at the San Ramon Pumping Station. This matter was discussed with Ms. Freihofner earlier in the agenda. 10. APPROVAL OF MINUTES a. MINUTES OF MAY 6.2004 It was moved by Member Hockett and seconded by Member Boneysteele, that the minutes of May 6,2004 be approved as presented. There being no objection, the motion was approved with Member Nejedly being absent. 11. BUDGET AND FINANCE a. RECEIVE APRIL 2004 FINANCIAL STATEMENTS Ms. Deborah Ratcliff, Controller, reviewed the results of operations and maintenance (O&M) for the month of April 2004, noting that expenditures were $299,000 less than budget, representing an 8.5 percent favorable variance. Year-to-date O&M expenditures were $2 million less than budget, representing a 5.7 percent favorable variance. Year-to-date O&M revenues of $35,730,000 were $1.7 million greater than budget, representing a 5.1 percent favorable variance. Ms. Ratcliff reported that year-to-date Sewer Construction Fund revenues were $23,416,000 and expenditures were $16,616,000, or $6,778,000 to the good. Ms. Ratcliff reported that the District's temporary investments were held in commercial paper, one banker's acceptance, and the District's Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF account was 1.445 percent. President Lucey declared that the April 2004 Financial Statements were duly received. 06 0 C') ð 04 255 ..' """"'" 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Menesini requested updates on the status of development in the Dougherty Valley, and the Walnut Creek North Main Street Project. BREAK At 3:40 p.m., President Lucey declared a recess, reconvening in closed session at the hour of 3:50 p.m., with all parties present as previously designated. 14. CLOSED SESSION a. SIGNIFICANT EXPOSURE TO LITIGATION Pursuant to Government Code Section 54956.9(b), a point has been reached where in the opinion of the Board of Directors of the Central Contra Costa Sanitary District, on the advice of its Counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the District. One potential matter is to be discussed at this time and one potential matter was discussed earlier in the meeting. At 4:50 p.m., President Lucey declared the closed session to discuss significant exposure to litigation pursuant to Government Code Section 54956.9(b) as noted above. At 4:06 p.m., President Lucey concluded the closed session and reconvened the meeting into open session. 15. REPORT OF DISCUSSIONS IN CLOSED SESSION No decisions were made or votes taken in closed session that require reporting at this time. 16. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 4:07 p.m. President of the Board of Directo s, Central Contra Costa Sanitary Di trict, County of Contra Costa, State of California COUNTERSIGNED: S r t of the Central on Costa Sa . ary District, County of Contra Costa, State of California 06 03 04