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HomeMy WebLinkAboutBOARD MINUTES 12-20-07 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON DECEMBER 20, 2007 The District Board of the Central Contra Costa Sanitary District convened in a regular meeting at its regular place of meeting, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, December 20, 2007. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, Lucey, McGill, Menesini, Nejedly ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS Board Members recognized Alex Benavidez on his promotion to Construction Equipment Operator. 2. PUBLIC COMMENTS There were no public comments. 3. AWARDS AND COMMENDATIONS a. RECEIVE PACIFIC GAS & ELECTRIC’S (PG&E) INDUSTRIAL ENERGY EFFICIENCY PROGRAM AWARD FOR 2007 FROM PG&E ACCOUNT EXECUTIVE CHRIS COLE. PG&E Account Executive Chris Cole and Service and Sales Supervisor James Monninger from PG&E presented the Board with the Energy Efficiency Program Award for 2007, and a rebate check in the amount of $88,300. This was in recognition of the Headquarters Office and Plant Operations Building HVAC Improvement Project, which replaced the old and deficient heating and air conditioning equipment within both buildings with new, more energy efficient equipment. Book 57 - Page 57 Board Minutes of December 20, 2007 4. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Lucey to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve expenditures dated December 20, 2007. Reviewed by Budget and Finance Committee. b. Approve minutes of October 31, 2007 Board Meeting. c. Adopt Resolution 2007-189 accepting an offer of dedication from Glacier Classics LP for an easement shown on the recorded final map of Subdivision 8347 in the City of Martinez, accepting Job 5562 - Parcel 1, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. d. Adopt Resolution 2007-190 accepting an offer of dedication from Western Pacific Housing-Windemere LLC for easements shown on the recorded final map of Subdivision 8646 in the Dougherty Valley area of San Ramon, accepting Job 5615 - Parcel 1, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. e. Adopt Resolution 2007-191 accepting an offer of dedication from Brookfield Ambridge LLC for easements shown on the recorded final map of Subdivision 8669 in the Dougherty Valley area of San Ramon, accepting Job 5620 - Parcel 1, public sewer improvements, and authorize staff to record documents with the Contra Costa County Recorder. f. Adopt Resolution 2007-192 accepting an offer of dedication and public sewer improvements from Gorman “B” Family Limited Partnership, Industrial Way, Concord, Job 5628 - Parcel 1, and authorize staff to record documents with the Contra Costa County Recorder. g. Adopt Resolution 2007-193 accepting an offer of dedication and public sewer improvements from John A. McHugh, Trustee, Industrial Way, Concord, Job 5628 - Parcel 2, and authorize staff to record documents with the Contra Costa County Recorder. h. Adopt Resolution 2007-194 accepting an offer of dedication and public sewer improvements from Romers RV Center, Industrial Way, Concord, Job 5628 - Parcel 3, and authorize staff to record documents with the Contra Costa County Recorder. Book 57 - Page 58 Board Minutes of December 20, 2007 i. Approve the formation of an Alhambra Valley Assessment District (AVAD) for properties on Monteira Lane and Reliez Valley Road in unincorporated Martinez for installation of sewer improvements; adopt Resolution of Intention 2007-195 to create Monteira AVAD No. 2007-4; adopt Resolution 2007-196 approving the boundary map, and adopt Resolution 2007-197 requesting consent of Contra Costa County for CCCSD to conduct proceedings for the AVAD. j. Approve the formation of an Alhambra Valley Assessment District (AVAD) for properties on Alhambra Valley Road, Fallen Oak Lane, and Quail Lane in unincorporated Martinez for installation of sewer improvements; adopt Resolution of Intention 2007-198 to create Quail AVAD No. 2007-6; adopt Resolution 2007- 199 approving the boundary map; and adopt Resolution 2007-200 requesting consent of Contra Costa County for CCCSD to conduct proceedings for the AVAD. k. Accept the contract work for the Vessing Sewer Renovation, District Project 5646, and authorize filing of the Notice of Completion. l. Accept the contract work for the A-Line Interceptor Rehabilitation, Phase 2, District Project 5806, and authorize filing of the Notice of Completion. m. Accept the contract work for the North Orinda Sewer Renovations, Phase 2.1, District Project 5968, and authorize filing of the Notice of Completion. n. Accept the contract work for the Plant Control System Improvements, District Project 7204. o. Authorize extension of medical leave of absence without pay for Utility Worker Felix Espinosa through January 18, 2008. p. Authorize extension of medical leave of absence without pay for Utility Worker Maralee Davi through January 4, 2008. q. Authorize extension of medical leave of absence without pay for Buildings and Grounds Supervisor Harry Wyles through February 22, 2008. r. Reject claim for damages by Joe Fitzpatrick. Book 57 - Page 59 Board Minutes of December 20, 2007 5. HEARINGS a. CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION APPROVING A MITIGATED NEGATIVE DECLARATION AND APPROVING THE PROPOSED COLLECTION SYSTEM OPERATIONS (CSO) FACILITIES IMPROVEMENTS PROJECT, DP 8208 General Manager James Kelly stated that the District is the lead agency for the new CSO Facilities. An Initial Study was conducted and staff has determined that a Mitigated Negative Declaration is the appropriate document to address the environmental effects of the project. The public hearing is being held to consider any comments received during the Mitigated Negative Declaration's thirty-day public review process. Engineering Assistant III Russ Leavitt presented a report, describing the proposed layout of the project and the CEQA and project approval process. The project consists of replacing existing CSO administration and warehouse building with new combined building, and adding more parking and landscaping. Staff has determined that a mitigated negative declaration is the appropriate environmental document for the project. One letter was received during the comment period, and as a result staff had a consultant evaluate the project site and confirm that the 51-year-old administration building does not appear to be potential historic resource. Director of Engineering Ann Farrell stated that the public review period for the CEQA document has ended, and after approval by the Board the District will submit a conditional use permit application to the City of Walnut Creek in January 2008. It is anticipated that the City will schedule a Design Review Board hearing in May or June of 2008, and a Planning Commission hearing in July. The conditional use permit may receive approval in August 2008, or, if not, another 2-3 months will be added to the schedule if the preferred design is rejected. She stated that staff is attempting to retain the current design of the building within the Measure A requirements. Ms. Farrell reported that Joe Bologna, architect and former Walnut Creek Design Review Board member, is assisting staff with the application. Staff is also working with the firm that conducted the green business review of the Walnut Creek library to make sure green ideas are being incorporated in the building design, while attempting to keep costs down. She stated that it is anticipated that the contract will be awarded in July/August 2009, and the new building occupied by December 2010, after which the existing administration/crew building will be demolished. In response to a question from Member Menesini, Ms. Farrell stated that if the application is rejected the building design would have be revised to incorporate a split- level design. Book 57 - Page 60 Board Minutes of December 20, 2007 Ms. Farrell stated that District Counsel is exploring other options also. The public hearing was opened and closed without comments. It was moved by Member Lucey and seconded by Member Menesini to adopt Resolution 2007-201, approving the mitigated negative declaration and approving the CSO Facilities Improvements Project as recommended. Motion passed by the following vote of the Board: AYES: Members: Lucey, McGill, Menesini, Nejedly NOES: Members: None ABSENT: Members: Hockett 6. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 7. BIDS AND AWARDS a. REJECT ALL BIDS SUBMITTED FOR THE INSTALLATION OF NEW MAIN GATE AT TREATMENT PLANT, RFB NO. 07-08-05, DISTRICT PROJECT 7251 General Manager James Kelly stated that, on December 5, 2007, the District opened two bids for the replacement of the main gate at the Treatment Plant. There were several inconsistencies in the apparent low bidder's bid, and the low bidder was also listed as a sub contractor by the second low bidder, which caused an inconsistency in the second low bidder’s bid. Staff recommends rejecting all bids and including this work in the Treatment Plant Site Improvements Project to be bid later this month. In response to questions, Associate Engineer Craig Mizutani described the proposed new gate and stated that it will be fabricated in steel, and be much stronger and heavier than the existing gate. It was moved by Member Menesini and seconded by Member Hockett to reject all bids submitted for the installation of new main gate at Treatment Plant, RFB No. 07-08-05, District Project 7251. Motion passed by unanimous vote of the Board. 8. ITEMS HELD OVER FROM PREVIOUS BOARD MEETINGS None. Book 57 - Page 61 Board Minutes of December 20, 2007 9. REPORTS a. GENERAL MANAGER 1) Report on GASB 45 General Manager James Kelly stated that the Board has received a copy of a white paper addressing GASB 45 and the funding options for post employment health benefits, as well as the AON Actuarial Report. The report discusses the District's unfunded liability and required annual contributions associated with retiree health care costs. Controller Debbie Ratcliff presented the results of the actuarial study. She stated that GASB 45 requires that an actuarial study and calculation of outstanding benefits costs be conducted every two years. In 2005 the study was done by AON. The District used them again for the 2007 study. Assumptions the actuary used are similar to County Retirement Association assumptions. The study used two interest rates - 5 percent and 8 percent. The 5 percent rate represents the pay-as you-go approach, not setting money aside. The 8 percent rate represents setting up a trust which earns interest. The Actuarial Accrued Liability (AAL) is the obligation of benefits to be paid in the future, which will change each year. Based on the 5 percent interest rate, the AAL is currently $68 million. Based on the 8 percent rate, it is $48 million. The difference illustrates the benefit of setting assets aside rather than using the pay-as-you-go approach. The Annual Required Contribution (ARC) at the 5 percent rate is $6.2 million, and is $5.2 million at the 8 percent rate. The study showed growth over two-year period. It did not include implicit rate subsidy in 2005 study which is now included. Ms. Ratcliff displayed graphs comparing pay-as-you-go vs. pre-funding, and showing growth in liability versus assets. She stated that, of several other agencies surveyed, three were moving forward to establish trusts and four were still undecided. She recommended that the Board direct staff to obtain additional information and alternatives for establishing a trust and to come back to the Board at a later date. In response to a question from Member Lucey, General Manager James Kelly confirmed that the Board was not being asked to make a decision today but just to direct staff to obtain more information regarding establishing a trust. Member Lucey asked why the $7,200,000 implicit rate subsidy had not been included in the 2005 study. Book 57 - Page 62 Board Minutes of December 20, 2007 Mr. Kelly responded to questions regarding actual premiums and liability increases as shown on the graphs. He stated that in 2023, the District would have approximately a $45 million liability if a trust had been established. Without a trust, the liability would be in the region of $200 million. Member McGill stated that the Budget and Finance Committee reviewed the information in detail. He stated that the Committee recommends that the Board direct staff to obtain more specific information regarding how a trust would work, different trust options, and policies regarding its administration. Board Members concurred with the staff recommendation to obtain more information and options regarding setting up a trust, and to come back to the Board at a future meeting. 2) Strategic Planning Update General Manager James Kelly gave a report on the Strategic Planning process, stating that the Strategic Planning Board Workshop held on October 31, 2007 identified the issues facing the Board as recycled water services; community outreach; cultural diversity; rates; and the District as an Industry Leader. The existing Strategic Plan will need to be revised to reflect input received at the workshop. With regard to recycled water services, the District will look at pursuing large recycled water projects, such as providing water to the refineries or industries close to Delta Diablo Sanitation District. Delta Diablo Sanitation District is proceeding with a joint study project, for which they have recently received a grant, and the District will be partnering with them, along with several other agencies. Staff has been looking at ways to provide recycled water to the refineries, but more time needs to be spent on examining water rights and legal issues. Member Lucey stated that there may be a need to have a legislative component to move the recycled water issue along, and the District may need its own lobbyist. Mr. Kelly stated that there is an existing plan to address District outreach efforts, and the Communications Services Manager is working on implementing the plan. At the workshop, the Board indicated it would like staff to audit recruitment processes to ensure there are no barriers, and to evaluate areas for improvement. Once a consultant has been selected and completed their review, a report will be provided to the Board. There was general satisfaction with rates, and staff will continue to use the capital plan and financial plans to guide the rate-setting process. Customer Book 57 - Page 63 Board Minutes of December 20, 2007 surveys to evaluate the quality of District services will continue. The Board also indicated an interest in looking at CalPers to determine whether the District could get better value for its retirement dollar. Finally, Mr. Kelly stated that staff needs to provide the Board with more information about staff’s professional accomplishments to demonstrate that the District continues to be an industry leader. Mr. Kelly concluded his report, stating that he will come back at end of the fiscal year for reaffirmation of the existing Mission, Vision and Values statement, and subsequent adoption of the revised Strategic Plan. 3) General Manager James Kelly announced that Collection System Operations Maintenance Supervisor Steve Sauter and Maintenance Crew Leader Ed Silva attended the Damage Prevention Conference and Expo Conference in Las Vegas, Nevada, on December 6, 2007. The conference detailed legislation and regulations regarding locating underground utilities, which have been strengthened since the November 2004 pipeline explosion in Walnut Creek. The disaster itself and the subsequent investigation and legislative changes were the topic of one of the workshops. 4) General Manager James Kelly announced that Assistant Engineer Nancy th Molina will be attending the 14 Annual Underground Construction Technology (UCT) Conference and Exhibition in Atlanta, Georgia, from January 29, 2008 through January 31, 2008. UCT attendees are exposed to new and diverse underground utility construction and rehabilitation methods. The conference helps attendees understand these varied methods and how to effectively integrate the options into the best possible project solution package. Previous District attendees have found the conference to be highly informative and a beneficial way to discuss new and innovative products with experts in the underground construction industry. 5) General Manager James Kelly announced staff visits to treatment plants in Minnesota and Michigan in relation to District Project 7237, Metal Removal Technology. He stated that, on July 19, 2007, the Board of Directors authorized a Professional Engineering Services Agreement with Black and Veatch Corporation (B&V) for the design of the Metals Removal Technology Project. B&V is currently under contract to perform an alternatives analysis and preliminary design to remove mercury from the furnace exhaust and plant effluent. Staff also plans to conduct two mercury removal pilot plant studies in conjunction with the work being performed by B&V. One of the pilot plant studies is very similar to the Metropolitan Wastewater Treatment Plant process in Saint Paul, Minnesota (MWTP), which contains full-scale mercury removal involving Book 57 - Page 64 Board Minutes of December 20, 2007 powdered activated carbon injection. MWTP recently encountered several problems with their mercury removal process. Staff will meet with MWTP staff to discuss the causes and solutions in order to take preventive measures during the design and construction of the Metals Removal Project and the pilot plant studies. The Ypsilanti Wastewater Treatment Plant in Ypsilanti, Michigan utilizes a packed carbon bed for mercury removal. This is one of the alternatives B&V is investigating for use at the District. Currently, there are no wastewater treatment plants in the western United States utilizing this method for mercury control. The Metals Removal Project may cost the District as much as $20 million to design and construct. It is prudent to send staff to evaluate processes and issues at these plants to insure a viable project for the District. Up to four staff members will be sent to visit these two treatment plants at an approximate cost of $6,000. Site visits are currently schedule for the week of January 14, 2008. 6) General Manager James Kelly announced that District staff recently met with the Martinez City Manager and the City Engineer about resolving a long-standing issue of missing sewer easements in the older areas of Martinez. Under a 1967 agreement, the District became responsible for the existing sewer system in the City of Martinez. At that time, the City and District were aware that not all of the existing sewers had sufficient easements or other property rights. The agreement provided for a process to acquire the necessary sewer easement rights with the City being responsible for the costs of acquisition. A significant number of these easement issues were resolved during the late 1980's and 1990's as part of District sewer replacement and renovation projects. Due to staff turnover and other priorities with both the City and District, work on resolving the missing easements stalled. Staff estimates that there are approximately 125 missing easements remaining to be acquired or resolved. During the next several years, the District will undertake another round of sewer renovation projects in the older areas of Martinez. District staff proposes to resolve all of the remaining missing easements over the next few years working with the City. District and City staff agreed to work together in an attempt to acquire the missing easements at the least cost. Staff will report periodically on the progress of this effort. 7) General Manager James Kelly announced that Assistant Engineer Raffi Moughamian in the Environmental Services Division has applied for participation in the 2008 Water Leaders Program sponsored by the Water Book 57 - Page 65 Board Minutes of December 20, 2007 Education Foundation. This year-long program educates about water quality and supply issues in the western United States. Participants are assigned to a mentor who is a major water stakeholder or policy-maker. Mr. Moughamian expects to hear whether or not he has been accepted into the program by the end of December 2007. If accepted, he will begin the program in early January 2008. The cost of the Water Leaders Program is $2500. Participation in this program was not specifically budgeted, however, there are sufficient funds in the Engineering Department training budget to cover this cost. 8) General Manager James Kelly announced that, on June 7, 2007, staff advised the Board that the District had undercharged developers of two subdivisions in Danville for capacity, reimbursement, and other related fees. The two developers are KB Home and Lennar Communities. The subdivisions are located in the “intervening properties” area near Lawrence Road and Camino Tassajara. Lennar Communities paid $258,083.70 in additional fees in September. KB Home owes an additional $133,287.87. During the summer, staff provided supporting information to KB Home representatives for the additional fees owed. On October 12, 2007, staff sent a formal invoice for the amount due, which was payable by November 27, 2007. KB Home requested an extension of the payment due date to allow further review and consultation with their attorney. Staff granted an extension to December 14, 2007. Staff has offered to allow KB Homes to pay over a one-year period. 9) General Manager James Kelly announced that, by December 19, 2007, staff anticipates that annexation of 243 properties in the Alhambra Valley will be completed. All of these properties are within the District sphere of influence and within the County Urban Limit Line (ULL). There are 16 properties in the Alhambra Valley that are outside of the ULL and have not been part of the previous annexation applications. Last May, the Board decided not to consider annexation of the properties outside the ULL until the other properties in the Alhambra Valley had been annexed. Staff will prepare a position paper about the issue of annexing the properties outside the ULL for Board consideration at a Board Meeting in early 2008. As this is a complex issue, staff will also prepare a memorandum to the Board that describes background information and possible alternatives. This memorandum will be distributed to the Board by early January 2007. Book 57 - Page 66 Board Minutes of December 20, 2007 10) General Manager James Kelly announced that Field Operations Superintendent Don Rhoads and Vehicle and Equipment Mechanic Nick Wright traveled to Indiana on December 17, 2007 to inspect the Collection Systems Operations new rodding truck, which is being assembled at the OK Champion manufacturing facility in Hammond, Indiana. The trip was financed by the vendor as part of the procurement of the rodder. Staff returned on December 18, 2007. Items 1-10 were provided as written announcements. 11) General Manager James Kelly announced that LAFCO staff conducted the protest hearing on December 18, 2007 for the District’s annexation of 242 properties in the Alhambra Valley. LAFCO staff received 17 written protests out of a possible 381 registered voters in the annexation area. On December 19, 2007 LAFCO unanimously overruled the protests and ordered the annexation of the 242 properties, encompassing approximately 302 acres, to CCCSD. 12) General Manager James Kelly announced that retired District employee Paul Morsen has served as Interim Executive Director of the Central Contra Costa Solid Waste Authority (CCCSWA) since the resignation of the Executive Director in June 2007. Recruitment of a permanent replacement was not successful. For the near term, the CCCSWA Board of Directors has decided to negotiate an extension of the contract with Mr. Morsen. Another recruitment for a permanent Executive Director will be conducted later. 13) General Manager James Kelly announced that a letter to the Editor appeared in yesterday’s Contra Costa Times complaining about the mercury in the new energy-efficient CFL bulbs. The writer stated that “our local recycling site in Martinez” does not accept these bulbs. Staff has sent a letter to the Editor noting that the HHW Collection Facility gladly accepts CFL bulbs, along with other household hazardous waste. 14) General Manager James Kelly announced that an Environmental Protection Agency (EPA) contractor, Tetra Tech, is scheduled to conduct a Pretreatment Compliance Audit (PCA) on January 16-17, 2008. The Tetra Tech audits are thorough and detail oriented. During the previous Pretreatment Compliance Inspection (which is not as detailed as a PCA), nine issues were identified which were responded to shortly after the inspection. The net result of the process was a recommendation to Region 9 EPA staff that the District be considered for the USEPA National Pretreatment Program Excellence Award. The District won this award. Book 57 - Page 67 Board Minutes of December 20, 2007 15) General Manager James Kelly announced that there was a schedule change for the RibLoc pipe liner installation. The current schedule is for the installation to be performed by the contractor on Monday January 7, 2008. The date and time of installation will be re-confirmed during the first week in January 2008. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm provided an update on the Gus Kramer quiet title action. c. SECRETARY OF THE DISTRICT No reports. d. BOARD MEMBERS 1) Member McGill reported on the December 17, 2007 Budget and Finance Committee meeting. The Board accepted the report without comments. 2) Member McGill reported on the December 12, 2007 Ad Hoc Code Review Committee meeting. He stated that two more meetings are scheduled, and a third may be needed to complete the review. 3) Member McGill reported his attendance at the December 6, 2007 Mayors’ Conference. Member Lucey reported on his attendance at the Mountain View Sanitary District Board Meeting at which the District presented its Household Hazardous Waste Annual Report. He stated that he has requested a tour of their facility and invited other Board Members to join him if they wished. 4) President-Elect Lucey distributed a memorandum announcing the proposed 2008 Board Committee assignments and asked Board Members to contact him if they had comments or questions. 5) Announcements President Nejedly stated that he received a request from the State Department of Fish and Game to store a boat and four-wheeler at the District’s Martinez Pumping Station. Staff is working on the request and the matter will be scheduled for review by the Real Estate Committee. Book 57 - Page 68 Board Minutes of December 20, 2007 10. ADMINISTRATIVE a. ADOPT A RESOLUTION AUTHORIZING THE GENERAL MANAGER TO EXECUTE THE CAL/WARN 2007 OMNIBUS MUTUAL ASSISTANCE AGREEMENT AND TO DESIGNATE APPROPRIATE STAFF AS AUTHORIZED OFFICIALS General Manager James Kelly stated that being a member of California Water/ Wastewater Agency Response Network allows members to lend personnel, equipment and other resources to each other in case of emergency. CalWARN also has a database of members’ resources so members can quickly identify and request use of those resources in order to improve its emergency response. The CalWARN program is consistent with State and Federal emergency management requirements for mutual assistance programs. Safety and Risk Management Administrator Shari Deutsch presented an overview of the program, stating that benefits include a process for sharing emergency resources among members statewide, although membership does not create an obligation to share resources. Designated District staff will evaluate any requests for mutual aid, and the same designated staff must make requests for aid. The requesting agency must reimburse the lending agency for use of any resource per the terms and conditions of the agreement. Employees borrowed by other agencies are covered under the home agency’s Workers’ Compensation program. It was moved by President Nejedly and seconded by Member Lucey to adopt Resolution 2007-202, authorizing the General Manager to execute the Cal/WARN 2007 Omnibus Mutual Assistance Agreement and to designate appropriate staff as authorized officials. Motion passed by unanimous vote of the Board. 11. ENGINEERING a. APPROVE THE FORMATION OF AN ALHAMBRA VALLEY ASSESSMENT DISTRICT (AVAD) FOR PROPERTIES ON ALHAMBRA VALLEY ROAD, CASTLE CREEK COURT, AND FALLEN OAK LANE IN UNINCORPORATED MARTINEZ FOR INSTALLATION OF SEWER IMPROVEMENTS; ADOPT RESOLUTION OF INTENTION 2007-203 TO CREATE CREEKSIDE OAKS AVAD NO. 2007-5; ADOPT RESOLUTION 2007-204 APPROVING THE BOUNDARY MAP; AND ADOPT RESOLUTION 2007-205 REQUESTING CONSENT OF CONTRA COSTA COUNTY FOR CCCSD TO CONDUCT PROCEEDINGS FOR THE AVAD General Manager James Kelly stated that the next item concerns initiation of one of the proposed Alhambra Valley Assessment Districts (AVAD). Because the circumstances about this assessment district are different from others, staff has placed it on the regular agenda for Board consideration. The primary difference is that a developer is the Book 57 - Page 69 Board Minutes of December 20, 2007 installer of the sewer extension to the neighborhood, rather than a group of residents as is the case with the other assessment districts. Financing of the sewer for the existing residents will involve a reimbursement of a portion of the sewer construction costs to the developer. Environmental Services Division Manager Curt Swanson described the details of the proposed Alhambra Valley Assessment District No. 2007-5, stating that the sewer extension has been constructed by the developer and serves nine existing properties along Alhambra Valley Road. There are nine potential participants, and 66 percent of them are interested in forming an AVAD. Staff proposes to reimburse the developer for the sewer portion of the sewer extension. The policy question is whether the District should finance the reimbursement owed to the developer. If it does not, residents must pay the reimbursement amount at the time of connection. If the District agrees to finance the reimbursement, there are two options: financing only the participant’s reimbursement, or financing both participant and non-participant reimbursements. He stated that staff recommends approving formation of the AVAD and financing both participant and non-participant reimbursements. Member Lucey objected to being asked to make a policy decision regarding how to address the reimbursements when the issue had not been addressed in the Position Paper. He stated that proceeding with the staff recommendation would set a precedent. Member McGill stated that it is his understanding that it is the District’s goal is to get as many people connected to sewers as possible. He concurred with Member Lucey that the issue was not addressed in the Position Paper. He expressed a preference for proceeding with the staff recommendation if it facilitates sewer hookups in the Alhambra Valley. President Nejedly concurred with Member McGill’s comments. In response to a question from Member Menesini, Mr. Swanson confirmed that the sewer has been installed in accordance with District standards. It was moved by Member Menesini and seconded by Member Hockett to approve the formation of an Alhambra Valley Assessment District (AVAD) for properties on Alhambra Valley Road, Castle Creek Court, and Fallen Oak Lane in unincorporated Martinez for installation of sewer improvements; adopted Resolutions 2007-203, 2007- 204 and 2007-205 as recommended; and to approve financing of both participant and non-participant sewer reimbursements owed to the developer. Member Lucey stated that he will abstain on the motion as he does not feel he has been provided with sufficient information. Motion passed by the following vote of the Board: Book 57 - Page 70 Board Minutes of December 20, 2007 AYES: NOES: ABSTAIN: Members: Members: Members: Hockett, McGill, Menesini, Nejedly None Lucey 12. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 13. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None. 14. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:22 p.m. iJaz/J~l~~ Barbara D. Hockett President Pro Tem of the Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Book 57 - Page 71