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HomeMy WebLinkAboutBOARD MINUTES 02-02-12MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON FEBRUARY 2, 2012 The Board of Directors of the Central Contra Costa Sanitary District convened in a regular meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, February 2, 2012. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, McGill, Menesini, Williams, Nejedly ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. b. INTRODUCTIONS None. Board Members welcomed Chemist II Jim Wan. 2. PUBLIC COMMENTS 3. CONSENT CALENDAR It was moved by Member McGill and seconded by Member Menesini to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. a. Approve minutes of Board meetings held on December 15, 2011; January 5, 2012; January 9, 2012; January 12, 2012; and January 16, 2012. b. Approve expenditures dated February 2, 2012. Reviewed by Budget and Finance Committee. C. Receive December 2011 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. d. Adopt Resolution 2012 -010 authorizing execution of a quitclaim deed to Charles A. O'Brien and Marie F. O'Brien, and Davidon Homes, a Limited Partnership, for Book 61— Page 161 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 sewer easements on properties located at 150 Hill Road and 610 Claire Place in Danville, respectively, and authorize staff to record documents with the Contra Costa County Recorder. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 7.a. was taken out of order. District Counsel Kent Aim stated that there was a need to add a Closed Session Item 10.c., regarding Contra Costa Superior Court Case No. MSC11 -01307 of Ryan Schaeffer, et al. v Gregory Village LP et al. He noted that this could be done by a four -fifths vote of the Board. He stated that action would need to be taken by the Board on this matter before the next regularly - scheduled Board Meeting of February 7, 2012 and that staff was unaware of the need for the item at the time of the agenda's legally- required time of posting. It was moved by Member McGill and seconded by Member Williams to add Item 10.c. to the agenda as recommended and to find that it was legal to do so under the requirements of the Brown Act. Motion passed by unanimous vote of the Board. 5. REPORTS a. GENERAL MANAGER 1) Contra Costa County Employees' Retirement Association ( CCCERA) Asset Smoothing and Market Stabilization Account Director of Administration Randy Musgraves summarized a presentation on asset smoothing and market stabilization given by actuary Paul Angelo, FSA, of The Segal Company at the January 25, 2012 CCCERA Board meeting. He stated that CCCERA's funding policy is comprised of (1) asset smoothing method, (2) amortization period and (3) actuarial cost method, which splits past and future based upon the actuarial formula of entry age normal method. Mr. Musgraves reported that the District has $40 million with 13 years left on amortization. De- pooling has 18 years, as does some of the loss -on- interest income, at 17 to 18 years. He defined asset smoothing as an attempt to remove the volatility of the market by stretching over a period to defer gains and losses. He explained that, in the retirement system, unfunded liability is equal to assets minus liability, and asset smoothing is about calculating a reasonable estimate of determining assets. President Nejedly added that there is difficulty in making decisions based on consistently- different numbers, all rooted in assumptions, fluctuating by millions of dollars at a time. Book 61— Page 162 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 Member McGill questioned, if the Board proceeded with a previously- considered option of refinancing, how the Board would know what it should refinance. Mr. Musgraves responded that he would try to address that in his Unfunded Actuarial Accrued Liability (UAAL) financing report. He stated that he had requested the assistance of Bartel & Associates, LLC with the District's projected unfunded liability. Staff contacted The Segal Company and confirmed that the UAAL will increase to $122.8 million; however, Mr. Musgraves noted that those numbers would inevitably change. He stated that, even if the Board debt financed and paid the $122.8 million, the District may have an unfunded liability because of the many changing assumptions. Member Williams stated his opinion that he is not expecting huge fluctuations in the market and that, while he was uncomfortable, the Board should go forward and try to cut the District's losses on a refinance. Mr. Musgraves noted that the District still has a normal cost and assumed, if the District overfunded its unfunded liability, that could offset the normal cost. If that were the case, the District's contributions to CCCERA would probably be reduced, rather than refunded. General Manager James Kelly stated that more information would be gathered to address Member Williams' question. 2) Announcements The following written announcements were included with the agenda packet: a) Member Hockett and Deputy General Manager /Director of Engineering Ann Farrell to Travel to California Association of Sanitation Agencies (CASA) Washington, D.C. Conference March 11 to 14, 2012 b) Deputy General Manager /Director of Engineering Ann Farrell to Attend Water Environmental Research Foundation (WERF) Meeting in Alexandria, Virginia from February 27 to 29, 2012 c) Promotions of Tammy Fong, Dana Lawson and Craig Mizutani d) No Businesses Found to be in Significant Non - Compliance (SNC) The following additional written announcements were made at the meeting: e) Retirement of Provisional Development Services Supervisor Brenda Wener f) District Pharmaceutical Disposal Program General Manager James Kelly distributed a February 1, 2012 press release regarding the three -year anniversary of the District's pharmaceutical disposal program, with 16 tons collected thus far. Book 61— Page 163 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 g) National Pollutant Discharge Elimination System ( NPDES) Permit renewal General Manager James Kelly updated the Board on the progress of the ongoing NPDES Permit renewal process. He stated that staff has reached a tentative agreement to perform collaborative studies with various agencies to address the concerns of the State and Federal Water Contractors. The agreement contains a scope which outlines the District's level of effort and schedules for studies such as the Suisun Bay and copepod collaborative efforts. General Manager James Kelly announced that a conference call has been scheduled with the Executive Officer of the State Water Contractors (SWC) and the Executive Officer of the San Luis and Delta Mendota Water Authority, the two signatories on the comment letter on the NPDES permit. The purpose of the call will be to agree upon a joint fact - finding approach. If an agreement is reached, the SWC will make its presentation at the Regional Water Quality Control Board hearing, but will not appeal the District's permit. The Water Contractors stated they cannot promise there will not be an appeal by one of their member agencies. General Manager James Kelly estimated that the studies should be completed in two to three years, with another year to synthesize information and modeling efforts. Therefore, it might be four to five years before the District would be faced with an effluent limit to remove ammonia. However, he noted, that while not anticipated, it is possible there may be a finding that ammonia is a more pressing issue. Staff plans to attend the Regional Water Quality Control Board ( RWQCB) meeting on February 8, 2012 to testify to the agreement with the water contractors and encourage the RWQCB to adopt the permit with the supplemental conditions agreed to with the water contractors. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced the Closed Session items. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming Special Board Meeting, scheduled for Tuesday, February 7, 2012 at 3:30 p.m. d. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend- and meetings or conferences for which the District paid their expenses: future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses Book 61— Page 164 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 Member Hockett Member Hockett reported on the January 26, 2012 26th Annual Contra Costa USA in Concord, a program held each year in Contra Costa County, drawing the attention of national, state and local leaders in business, politics, education and the community. She reported that she sat next to Bob Whitley and discussed his relationship with Stanford University and his design for a possible wastewater - research facility. Member McGill Member McGill reported on the January 26, 2012 26th Annual Contra Costa USA in Concord, a program held each year in Contra Costa County, drawing the attention of national, state and local leaders in business, politics, education and the community. Member McGill (Alternate) and President Nejedly reported on the January 30, 2012 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comments. 2) Consider Board Member McGill's request to adopt Resolution 2012 -009 nominating him for re- election as the Special District Representative on Contra Costa Local Agency Formation Commission ( LAFCO) It was moved by Member Hockett and seconded by President Nejedly to adopt Resolution 2012 -009 nominating Board Member McGill as requested. Motion passed by unanimous vote of the Board. 3) Appoint Voting Delegate and Alternate for Contra Costa LAFCO election to be held on April 16, 2012 Member McGill stated that, historically, the representative to the Contra Costa Special Districts Association (CCSDA) served as Voting Delegate and the alternate served as the Alternate. This year, those would be Member McGill and Member Williams, respectively. Member McGill added that the Board will be asked to provide direction to the Voting Delegate on for whom to vote at an upcoming Board Meeting. It was moved by Member McGill and seconded by President Nejedly to appoint Member McGill as Voting Delegate and Member Williams as Alternate for the Contra Costa LAFCO election to be held April 16, 2012. 4) Announcements a) Member McGill provided a written report covering Announcements. Book 61— Page 165 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 6. ADMINISTRATIVE a. CONSIDER SETTING A PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS AND CONSIDER ADOPTION OF A RESOLUTION ESTABLISHING REGULAR ANNUAL PUBLIC REVIEW General Manager James Kelly stated that, in April 2011, the District responded to the Contra Costa Grand Jury Report No. 1104, stating that it would conduct an annual public review of Board Member compensation and benefits. At its meeting on January 9, 2012, the Budget and Finance Committee reviewed options for addressing the annual public review and recommended the Board set a public hearing to discuss the matter and adopt a resolution establishing an annual public review. He explained the Board's options to set a public hearing to be heard as part of the ongoing budget process or to have a separate consideration. President Nejedly stated that, if this is to be an annual occurrence, it should be done sooner rather than later, at staffs convenience. Member McGill agreed and added that there was no need to time the discussion in concurrence with the budget adoption. He stated that the matter is important enough to be considered on its own, and the Board's input can then be incorporated into the budget. 7. ENGINEERING a. ADOPT RESOLUTION 2012 -011 ACCEPTING AN AMENDMENT TO A GRANT OF EASEMENT FROM CONTRA COSTA COUNTY FOR IRON HORSE CORRIDOR (IHC) PARCELS LOCATED WITHIN THE CITY OF WALNUT CREEK THE UNINCORPORATED AREA OF ALAMO, AND THE TOWN OF DANVILLE DISTRICT PROJECTS 4181, 4224 AND 4257, AND AUTHORIZE STAFF TO RECORD DOCUMENTS WITH THE CONTRA COSTA COUNTY RECORDER Associate Engineer Stephanie Gronlund explained that the County granted the District 19 miles of easements in exchange for the District's $5.4 million contribution to their 1985 purchase of 26 miles of Southern Pacific Railroad right -of -way, now IHC. At the time the original grants of easement were recorded, accurate survey descriptions were unavailable. Amending the easements now allows for more accurate title searches and increased efficiency of field - locating facilities and easements. Currently, 45 of 52 total IHC parcels have been reviewed and approved by the County Surveyor, in queue to be approved by both Boards and recorded in February 2012. One hundred percent completion is anticipated by June 30, 2012. Ms. Gronlund recognized the project team members in the audience: County Senior Real Property Agent Carla Peccianti, County Assistant Land Surveyor Janine Hampton and Land Surveyor Liz Chariton. It was moved by Member Williams and seconded by Member Menesini to adopt Resolution 2012 -011 accepting an amendment to a grant of easement from Contra Book 61— Page 166 None. None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 Costa County for specified Iron Horse Corridor parcels. Motion passed by unanimous vote of the Board. 8. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS 11. CLOSED SESSION The Board recessed at 3:00 p.m. to reconvene in closed session in the Caucus Room regarding Item 11.a. a. Personnel matter pursuant to Government Code Section 54957 — Performance Evaluation for General Manager. b. Conference with Legal Counsel — Anticipated Litigation — initiation of litigation pursuant to Government Code Section 54956.9(c). • One potential case. C. Conference with Legal Counsel — existing litigation pursuant to Government Code Section 54956.9(a). • Ryan Schaeffer, et al. v Gregory Village LP, et al., Contra Costa Superior Court Case No. MSC11- 01307. The Board recessed at 3:58 p.m. to reconvene in the Board Room in open session. 12. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that no reportable action was taken in closed session with regard to the two litigation matters. 13. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 4:00 p.m. Book 61— Page 167 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of February 2, 2012 1 Ja A. Nejedly F$-resident of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Book 61— Page 168