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HomeMy WebLinkAboutBOARD MINUTES 07-01-04 1 MINUTES OF THE REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JULY 1, 2004 I 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 July 1, 2004. President Lucey called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Menesini, Boneysteele, Nejedly, Hockett, Lucey ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance to the Flag. b. INTRODUCTIONS INTRODUCE ROBERT SPARE. NEWLY HIRED SOURCE CONTROL INSPECTOR I . Source Control Inspector I Robert Spare was introduced and welcomed to the District by President Lucey and the Board of Directors. I Mr. Kenton L. Aim, Counsel for the District, introduced Mr. Bryan Otake, his Associate who will be working with the District. Mr. Otake was welcomed to the District by President Lucey and the Board of Directors. 2. PUBLIC COMMENTS None 3. CONSENT CALENDAR It was moved by Member Menesini and seconded by Member Hockett, that the Consent Calendar, consisting of Item a., be approved as recommended, resolution adopted, and recording duly authorized. a. A Grant of Easement was accepted from the Thomas F. Ksenzulak Family Trust dated June 2, 1998; staff was authorized to record the Grant of Easement with the Contra Costa County Recorder; and Resolution No. 2004-043 was adopted to that effect. Motion unanimously approved on the following vote: I AYES: Members: NOES: Members: ABSENT: Members: Menesini, Hockett, Boneysteele, Nejedly, Lucey None None 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None 7 -1-04 2 5. BIDS AND AWARDS a. AUTHORIZE AWARD OF CONSTRUCTION CONTRACT TO PFISTER EXCAVATING INC. FOR THE ROSSMOOR SEWER IMPROVEMENTS PROJECT. PHASE 9. DP 5724 Mr. Charles W. Batts, General Manager, stated that the Board authorized advertisement of the Rossmoor Sewer Improvements Project, Phase 9, on April 15 and bids were opened on May 4,2004. Prior to awarding the contract, the District was made aware of a legal issue involving possible patent infringement on the pipe bursting technology involving the apparent low bidder, K. J. Woods. The Board elected to reject all bids and re-bid the project. The project was re-bid and two bids were received on June 22. Pfister Excavating was the lowest responsible bidder at $337,892. The engineer's estimate was $315,000, and the initial May bid by K. J. Woods was $218,000. The project scope of work includes installation of pipe by pipe bursting and open cut methods, construction of several manholes, rerouting a sewer lateral and some indoor plumbing, and relocating an existing sewer line in the lawn bowling area. Following discussion, it was moved by Member Hockett and seconded by Member Menesini, that award of a construction contract in the amount of $337,892.50 for the construction of the Rossmoor Sewer Improvements Project, Phase 9, DP 5724, be authorized to Pfister Excavating, Inc., the lowest responsive and responsible bidder. There being no objection, the motion was unanimously approved. 6. REPORTS a. GENERAL MANAGER 1) Mr. Batts, General Manager, stated that for the eighth time in ten years, the State of California has ended the fiscal year without an approved budget. The feeling in Sacramento is that while there are many problems with the Governor's proposed budget, there are few other options. The budget, in one form or another, should be completed soon. The Governor has put together various deals to solve the $12 billion shortfall and to get a $103 billion State budget without a major tax increase. The State borrowed $15 billion to solve the old shortfall problem. The Governor tried to nurture the economic recovery in California with actions like Workers' Compensation reform, resulting in an expected increase of $2-3 billion in State revenue. The Governor used his influence in the Bush administration to bring greater federal funding to California, resulting in an additional $1 billion. The Governor is trying to shift dedicated State funds, such as gasoline sales tax to the general fund, and cut highway spending, resulting in another $2 billion. The Governor plans to suspend Proposition 98, baseline public school funding, resulting in another $2 billion. The Governor has also made a deal with higher education, where the State could save another $600 million. The Governor has a deal with local government for another Education Relief Augmentation Fund (ERAF) shift from local government bringing another $1.3 billion to the State. The Governor has a deal where Indian tribes will get exclusive casino rights and give the State $1 billion. The Governor has used his power to reach a deal with the prison guards that will save $108 million. Finally, the Governor has also reached a deal with State employees involving pension reform saving the State $60 million and issuing $900 million in pension bonds. Mr. Batts stated that the concern of many in Sacramento is that all of these Governor-brokered deals commit the State to higher costs and less revenue in future years. There is no institutional fix for the State's financial problems. The Governor's hope seems to be that growing revenue from an economic upturn will carry the State in future years. 7-1-04 I I I I I I 3 Mr. Batts stated that on a local level, Contra Costa County expects a $53.5 million shortfall plus additional State cuts in the County's $1.1 billion budget. All departments were asked to cut an additional 10 percent from their budgets. Several social programs have been eliminated or reduced, the County eliminated 504 jobs, with 141 of those being actual layoffs. Alameda County approved a $2 billion budget eliminating 128 jobs to try to close a $98 million funding gap. 2) Mr. Batts, General Manager, announced that on June 21, 2004, the District received a Public Records Act request from Environmental Advocates, asking for the last five years of collection system records and related information. That information is now being collected. 3) Mr. Batts, General Manager, introduced Mr. Craig Mizutani, Associate Engineer, who provided a brief overview of the District's energy costs and usage for the last year, and projections for the coming year. As the Board is aware, the District is recognized as a leader in the field of energy conservation. Energy conservation has allowed the overall amount of energy used by the District to remain stable over the last several years. Dramatic increases in energy costs over the last year are expected to impact the District next year mainly due to increasing natural gas prices. Mr. Mizutani recapped the 2003-2004 budgeted utility costs compared to the 2004-2005 budgeted utility costs, noting that electricity is projected to decrease from $360,700 in 2003-2004 to $255,000 in 2004-2005; natural gas costs are projected to increase from $1,951,000 to $2,244,500, and landfill gas costs are projected to increase from $560,000 to $624,800. Mr. Mizutani stated that the price of crude oil is an indicator for all energy prices. The price of crude oil has increased sharply from about $14 per barrel in 1994 to over $36 dollars per barrel today. In 2004-2005, $2,244,500 has been budgeted for 420,000 decatherms of natural gas at an average of $5.34 per decatherm. As the Board knows, the District prepurchases natural gas. Approximately 60 percent of the natural gas has already been purchased for the coming year at $5.20 per decatherm. To meet budget, future purchases of the remaining 40 percent must not exceed $5.60 per decatherm. Mr. Mizutani stated that the current price of natural gas is $6.60 per decatherm. In order to meet budget, staff must wait to purchase natural gas until it drops about $1 per decatherm. In closing, Mr. Mizutani stated that future natural gas prices are volatile because they are tied to crude oil prices. Staff will be looking for an opportunity to purchase natural gas in the next three months. President Lucey thanked Mr. Mizutani for the update, stating that the bottom line is that the District has no control over gas prices. The District has been fortunate with some of the prices that we have gotten in the past. 4) Mr. Batts, General Manager, reported that at a second meeting in San Ramon on June 4,2004, Director of Operations James M. Kelly and other District personnel met with various officials to provide an update on the District's response to the overflow at the San Ramon Pumping Station. Resulting actions included sign off by the City of San Ramon on storm drain cleanup, increasing the overflow contact list for that station, improving response and coordination, providing additional barricades, conducting additional training for response to such events, and providing public information. Many of the initial recommendations have been implemented or the issues resolved within the last month. Mr. Batts distributed notice of the public meeting that will be held at 7:00 p.m. on Friday, July 2,2004 in the Pine Valley Middle School at 3000 Pine Valley Road in San Ramon. City officials as well as a representative from the Regional Water Quality Control Board will attend that public meeting. 7 -1-04 4 Following discussion of the Dublin San Ramon Services District (DSRSD) bypass line in which it was noted that the DSRSD bypass line has been closed for maintenance approximately seven weeks during the approximate three-year construction project, Member Nejedly requested that the Board entertain the idea of having someone present 24 hours a day, seven days a week to monitor the pumping station when the DSRSD bypass line is out of service. Members Hockett and Lucey concurred with Member Nejedly's suggestion. Mr. Kelly, Director of Operations, stated that is good guidance, and staff had also considered doing that. Member Nejedly stated further that it may be appropriate to have the San Ramon pumping station staffed 24 hours a day seven days a week during wet weather when there is increased flow. Member Nejedly stated that this would be a cheap insurance policy during peak wet weather flows. Member Menesini stated that he would vote against it although he shares Member Nejedly's concern. Member Menesini stated that he does not know if it is necessary given that the gate has been locked open ~nd the Supervisory Control and Data Acquisition (SCADA) system will soon be in place. Member Menesini stated that there was an accident at the San Ramon pumping station, so perhaps it is warranted, but he has confidence in the SCADA system and program which he has seen demonstrated. In response to a question from Member Hockett, Mr. Kelly stated that the final installation of the gate has taken place. The alarms are alarmed to the treatment plant. The way the gate closes has been changed in the computer. There are two computers at the pumping station. A new computer has been ordered to replace the one that was operating during the incident. Once the new computer is programmed, it will be changed out. Staff is reviewing whether the influent gate should be in automatic close mode, and may decide never to put the gate into automatic close mode. The District is notified by DSRSD by letter for planned maintenance of their collection system. DSRSD has currently put a cap on the flow of 3,000 gallons per minute during dry weather. This is a significant amount of flow and the District does not believe the flow will reach that level in the Dougherty Valley for some time. Mr. Kelly stated that District staff will be meeting with DSRSD representatives next week to discuss making the bypass arrangement permanent. Member Nejedly requested that staff look into having a backup cell phone for the alarms that would call if power is lost at the pumping station. Mr. Kelly stated that staff will look into that. There is a standby generator at the pumping station that supplies power in the event of power outage. Member Boneysteele agreed with Member Nejedly, stating that the District must put every degree of redundancy into the station that we can. Member Boneysteele stated that he thinks that having an operator on site when the DSRSD system is down is a prudent idea, stating further that the District must take the most prudent course. President Lucey stated that staff has responded as they should. Staff is looking at this from an engineering point of view. The Board is not. We have zero credibility with San Ramon. We said that it would be a state of the art pumping station. Then we had a problem. This District is an outstanding District, but we have zero credibility with San Ramon. We cannot have another problem in San Ramon. 7-1-04 I I I I I I 5 Member Hockett stated that she does not like to dictate to staff what they should do. Staff is well versed in public relations and engineering issues. Member Hockett stated that she would like to hear back from staff on what their proposal would be for San Ramon. Member Hockett stated that she would like to hear from staff what they think is the best fix for this situation. Mr. Batts stated that he cannot guarantee there will never be another overflow. An agreement will be worked out with DSRSD. If the DSRSD bypass line is shut down, the District will have someone at this station full- time. Having a full-time person at San Ramon during peak wet weather flow is more difficult. That is when there are likely to be problems in all of the areas of the District, and staff must be able to move around the various pumping station areas. Member Menesini supported this direction, but asked that a report be made to the Board in a month or two. President Lucey thanked staff for the update. 5) Mr. Batts, General Manager, reported that 188 people, including District employees and their families, retirees, and invited agencies, attended the District Open House event held on June 19, 2004. There were tours of the plant and various other District functions, and light refreshments. The departments did an exceptional job preparing. The plant was spotless, the laboratory sparkled, Collection System Operations (CSO) trucks and equipment looked exceptionally fine. Mr. Batts stated that he heard many favorable comments. Members Hockett and Menesini stated that they attended the event, and they joined in thanking all those who worked so hard to make the District Open House a success and everyone who came and enjoyed the event. 6) Mr. Batts, General Manager, announced that last week there were reports in the Contra Costa Times that Native American artifacts and remains had been discovered at the Hidden Oaks development site in Lafayette. ' Construction of streets, grading of lots, and installation of utilities including sewers, is currently underway. The planners knew of the presence of significant archeological resources early on, so the project's design included special features to protect and preserve those areas. When artifacts or remains are encountered, work is stopped. An archeologist and Native American representatives decide whether to remove and relocate what has been found, or allow it to remain. In some cases, .' relocation of the sewer is necessary. The developer and the District are working cooperatively to facilitate development that is respectful of the archeological and cultural resources. It is notable that the Native American representatives prefer development of homes on the site as the best way to avoid disturbance in the future. 7) Mr. Batts, General Manager, announced that all District employees and temporaries are participating in mandatory training on "Discrimination, Harassment, and Violence Prevention at Work." The trainer is Sue Ann VanDermyden, an attorney from the District's labor law firm of Hanson, Bridgett. 8) Mr. Batts, General Manager, reported that in the June 30, 2004 San Francisco Chronicle, there was an article about the City of San Francisco's aggressive program to control mercury from dentist offices. The District was contacted and mentioned in the article as considering its own program in the future. 9) Mr. Batts, General Manager, stated that on June 22, 2004, he made a presentation to the Grand Jury that covered the structure, organization, functions, and finances of the District. The presentation was well 7 -1-04 6 received. There were several questions about reclaimed water, sludge disposal, and similar districts within the County. b. COUNSEL FOR THE DISTRICT 1) Mr. Kenton L. Aim, Counsel for the District, announced that ABB, Inc. has complied with the terms of the settlement reach in August 2002, concerning the products defect and services dispute with the supplier for the District's ultraviolet disinfection equipment. ABB, Inc. has paid the District $39,000 and provided the District with the design drawings for the ballasts and a license to allow another supplier to produce the ballasts for the District. c. SECRETARY OF THE DISTRICT d. 7 -1-04 1) Following discussion, the July 29,2004 Board Meeting was cancelled. If something arises that requires the Board's attention, the President of the Board will call a meeting. Member Nejedly stated that he will be unable to attend the July 15, 2004 Board Meeting, and requested to be excused. BOARD MEMBERS 1) Member Boneysteele reported that he and Member Menesini met with staff on June 24, 2004 for an overview of Survey, Design, and Engineering Support. Notes and photographs from that meeting were distributed and reviewed. Member Boneysteele stated that the changes in technology have been revolutionary. Work that was previously done by a four-person crew, can now be done by one person in many cases. Wireless technology is used to collect and transmit field data through the various Survey, Design, and Engineering Support processes. Member Menesini agreed with Member Boneysteele that the presentations were excellent. Member Menesini underscored the outstanding degree of teamwork, open communication, and sharing of information. Member Menesini stated that while the technology is very impressive, the background discipline knowledge of the individuals is still necessary and important. 2) Member Boneysteele, Chair of the Budget and Finance Committee, reported that he and Member Menesini reviewed the expenditures and took no exception. It was moved by Member Boneysteele and seconded by Member Menesini, that the Expenditure List dated July 1, 2004, including Self Insurance Check Nos. 102114-102117, Running Expense Check Nos. 150613-150769, and Sewer Construction Check Nos. 26787-26816, be approved as recommended. There being no objection, the motion was unanimously approved. 3) Member Menesini and Member Hockett reported on the meeting on water issues hosted by Congresswoman Ellen Tauscher which they recently attended. Cal Fed funding for repair of dikes in the Delta and recycled water were major topics of discussion. I I I I I I 7 7. APPROVAL OF MINUTES a. MINUTES OF JUNE 3. 2004 It was moved by Member Hockett and seconded by Member Menesini, that the minutes of June 3,2004 be approved as presented. There being no objection, the motion was unanimously approved. 8. BUDGET AND FINANCE a. RECEIVE MAY 2004 FINANCIAL STATEMENTS In the absence of Controller Deborah Ratcliff, Ms. Colette Curtis-Brown, Finance Administrator, reviewed the results of operations and maintenance (O&M) for the month of May 2004, noting that revenues of $35.8 million were $1.8 million greater than budget. O&M expenditures for the month of May 2004 of $3.4 million were $100,000 less than budget. Year-to-date O&M expenditures of $36.9 million were $2.1 million less than budget. Ms. Curtis-Brown reported that year-to-date Sewer Construction Fund revenues were $24.6 million and expenditures were $17.5 million, or $7.1 million favorable. Ms. Curtis-Brown reported that the District's temporary investments were held in commercial paper, bankers' acceptances, and the District's Local Agency Investment Fund (LAIF) account. The average yield of the District's LAIF account through May 2004 was 1.426 percent. President Lucey declared that the May 2004 Financial Statements were duly received. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None 10. ANNOUNCEMENTS/SUGGESTIONS FOR FUTURE AGENDA ITEMS None 11. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meetin~ at the hour of 3:24 p.m. r .) , ff/;;K / ì ) /1 ,--;./"' jlo / I /' ':~¿/í&- /i,i' ~/{,~ President of th Board of Di ectors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: 7 -1-04