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Home My WebLink AboutBOARD MINUTES 01-09-14 (Special)MINUTES OF THE SPECIAL MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JANUARY 9, 2014 The Board of Directors of the Central Contra Costa Sanitary District convened in a special meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, January 9, 2014. President Williams called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, McGill, Nejedly, Pilecki, Williams ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG None. The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. ADOPT RESOLUTION 2014 -001 COMMENDING OUTGOING BOARD PRESIDENT JAMES A. NEJEDLY FOR HIS SERVICE President Williams read excerpts from the resolution, which described achievements during Member Nejedly's term as President. He noted that, under Member Nejedly's leadership, the District experienced the lowest number of overflows in its history, and the Treatment Plant received National Association of Clean Water Agencies (NACWA) Platinum 14 and Platinum 15 awards, for a total 15 consecutive years of 100 percent compliance with National Pollutant Discharge Elimination System (NPDES) requirements. Member Nejedly thanked staff for its efforts and noted that he was confident in the direction the District was headed under the leadership of President Williams and General Manager Roger Bailey. It was moved by Member Causey and seconded by Member Pilecki to adopt Resolution 2014 -001 commending outgoing Board President James A. Nejedly for his service. Motion passed by the following vote of the Board: Book 63 — Page 33 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 9, 2014 AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: None ABSTAIN: Members: Nejedly 4. CONSENT CALENDAR a. Approve minutes of December 5, 2013 Board meeting. b. Approve expenditures dated January 9, 2014. Reviewed by Finance Committee. C. Receive November 2013 Financial Statements and Investment Reports. Reviewed by Finance Committee. d. Adopt Resolution 2014 -002 accepting a grant of easement from Robert T. Ishii and Nancy S. Wallace for the property located at 25 Springhill Manor, Lafayette (APN 230 - 110 -022); adopt Resolution 2014 -003 authorizing the execution of a quitclaim deed for the property (District Project 1276, Parcel 2); and authorize staff to record the documents with the Contra Costa County Recorder. e. Adopt Resolution 2014 -004 authorizing the General Manager to execute a new 45- year General Lease Agreement with the State Lands Commission for a District sewer located on land at the Martinez Marina (APN 373 - 040 -003); and authorize staff to record the agreement with the Contra Costa County Recorder. f. Delete a vacant Assistant Engineer position (S73, $7,418 - $8,974) and add and authorize the filling of a new Maintenance Planner position (G71, $7,030 - $8,512). It was moved by Member McGill and seconded by Member Causey to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 6. REPORTS a. GENERAL MANAGER 1) Update on Unfunded Actuarial Accrued Liability (UAAL) Finance Manager Thea Vassallo stated that the 2012 -13 unfunded liabilities, totaling $266.6 million, included $142.5 million from CCCERA as of the 2012 valuation; $75.8 million from the Governmental Accounting Standards Board (GASB) 45 Other Post - Employment Benefits (OPEB) Trust, covering benefits Book 63 — Page 34 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of January 9, 2014 to retirees for medical, dental, and life insurance; $44.5 million in outstanding debt from the 2009 bonds; and $3.8 million in accrued compensated absences, which has decreased over the years as retirements have increased. Ms. Vassallo stated that three factors affect the CCCERA rates and UAAL: economic actuarial assumptions performed every three years, actuarial experience studies conducted every three years, and market volatility. In 2012 alone, the changes resulting from the 2012 economic actuarial assumptions increased the District's UAAL by approximately $15.8 million. The result of the 2012 actuarial experience study, based on demographical activities of members and retirees and other outside statistical information, increased the UAAL by another $6.7 million. There was a large market loss of 28.35 percent in 2008, as well as extraordinary losses due to smoothing, spread over five valuations. The District had the highest terminal compensation of all the agencies in CCCERA, which increased the District's rates from 12 to 24 percent of salary. Ms. Vassallo reported that, in 2007, the UAAL was 90 percent funded and totaled $32 million. The bulk of the increases since then were the result of de- pooling in 2009 and 2010 ($31 million) and actuarial losses exceeding the gains and assumption rate changes from December 31, 2008 to December 31, 2012 ($79 million), for a total UAAL as of December 31, 2012 of $142 million in CCCERA UAAL. She noted that the District prefunds its annual costs to CCCERA each year, rather than paying monthly, which allows the District to receive CCCERA's assumed rate of return on the amount prefunded. Ms. Vassallo noted that the last of the 2008 market losses were accounted for in the 2012 valuation, better investment market results in four of the last five years will help lower the UAAL, and annual rates should begin to decrease as the UAAL is funded. She stated that staff will continue to monitor CCCERA meetings and actuarial information, additional pay -downs to the UAAL will be reviewed annually in the Ten -Year Financial Plan, and, once the UAAL is closer to the full funding level, the money could be applied elsewhere. General Manager Roger Bailey stated that the Board will receive a similar presentation at least every year, so the District's position relative to assumptions can be evaluated and adjusted if necessary. The Board can also discuss levels and types of reserves in the context of the upcoming cost - of- service study. 2) Announcements The following written announcements were included with the agenda packet: Book 63 — Page 35 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of January 9, 2014 a) Registration differential for Assistant Engineer Justin Waples, effective December 18, 2013 b) Public bidding for Cogen Controls Upgrade, District Project 7308 c) District makes $5 million additional payment toward UAAL d) 2014 Health & Wellness Expo The following additional announcement was made at the meeting: e) Delta Discovery Voyage invitation General Manager Roger Bailey stated that he would be out of the office attending California Association of Sanitation Agencies (CASA) Conference in Indian Wells from January 15 through January 17, 2014. He also wished Member McGill a happy birthday. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm reported that Closed Session Items 12.a. and 12.b. would be held as scheduled. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming meeting of the Real Estate, Environmental & Planning Committee on January 13, 2014. d. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend: and meetings or conferences for which the District paid their expenses: future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses Member Cause Member Causey and Member Nejedly reported on the January 6, 2014 Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. President Williams President Williams reported that the schedules have been set for regular meetings of the four Board Committees for 2014, which will help the Board have more time to review the agenda packets in advance of the meetings. Book 63 — Page 36 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 9, 2014 President Williams suggested that the Board discuss the six -month review of the General Manager Performance Plan and possibly hiring the facilitator of the Board Priorities Workshop, Mr. Larry Bienati, to work with General Manager Roger Bailey to draft his vision for the upcoming year and obtain input from the Board Members. Staff was directed to place consideration of hiring Mr. Bienati for the six -month review on a future agenda. 2) Announcements Member McGill provided a written report covering Announcements and other meetings. He also announced that he would be unable to attend the February 20, 2014 Board Meeting. 7. ADMINISTRATIVE a. CONSIDER ADOPTING RESOLUTION 2014 -005 ADOPTING ROSENBERG'S RULES OF ORDER, AS REVISED BY DISTRICT COUNSEL AS THE DISTRICT'S PARLIAMENTARY PROCEDURES TO ASSIST IN THE CONDUCT OF FUTURE BOARD MEETINGS Approval of this item was recommended by the former Policy Development and Internal Operations Committee. District Counsel Kent Alm noted that he made modifications regarding counting votes and abstentions, as outlined in the Position Paper. It was moved by Member Causey and seconded by Member Nejedly to adopt Resolution 2014 -005 adopting Rosenberg's Rules of Order, as revised by District Counsel, as the District's parliamentary procedures to assist in the conduct of future Board meetings. Motion passed by unanimous vote of the Board. 8. BUDGET AND FINANCE a. ADJOURN BOARD MEETING AND RECONVENE AS THE CENTRAL CONTRA COSTA SANITARY DISTRICT FACILITIES FINANCING AUTHORITY (AUTHORITY) TO CONDUCT ITS ANNUAL MEETING The Board of Directors of the Central Contra Costa Sanitary District adjourned at 3:06 p.m. to reconvene immediately as the Board of Directors of the Central Contra Costa Sanitary District Facilities Financing Authority to conduct its Annual Meeting. In compliance with Assembly Bill 23, it was announced that Board Members did not receive a separate or increased stipend for attendance at this meeting. Book 63 — Page 37 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 9, 2014 Thereafter, the Board reconvened as Central Contra Costa Sanitary District Board of Directors at 3:09 p.m. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. See Item 6.d.1). 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS 11. ANNOUNCEMENT OF CLOSED SESSION (Pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced Closed Session Items 12.a. and 12.b. 12. CLOSED SESSION The Board recessed at 3:11 p.m. to reconvene in closed session in the Caucus Room regarding the following matters: a. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a): • Contra Costa County Deputy Sheriffs Association et al v Contra Costa County Employees' Retirement Association (CCCERA) et al., Contra Costa County Superior Court Case No. MSN12 -1870. b. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b): • One Potential Case — California River Watch The Board recessed at 4:00 p.m. to reconvene in the Board Room in open session. 13. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that the Board provided further instruction to District Counsel regarding Item 12.a. He also reported that authority to resolve the case was provided to District Counsel, conditioned upon California River Watch agreeing to some changes, regarding Item 12.b. Book 63 — Page 38 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 9, 2014 14. ADJOURNMENT There being no further business to come before the Board, President Williams adjourned the meeting at 4:05 p.m. -- - - , Ew David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Book 63 - Page 39