Loading...
HomeMy WebLinkAboutBOARD MINUTES 03-06-14MINUTES OF THE SPECIAL MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 6, 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, March 6, 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 0 The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS 3. CONSENT CALENDAR a. Approve minutes of February 6, 2014 Board meeting. b. Approve expenditures dated March 6, 2014. Approval recommended by Finance Committee. C. Receive January 2014 Financial Statements and Investment Reports. Approval recommended by Finance Committee. d. Approve an amendment to the District's Section 125 Cafeteria Plan adding a grace period option allowing employees to incur and be reimbursed for eligible expenses up to March 15 of the following plan year; and authorize the Board President to execute the revised contract to make this change effective with the 2014 plan year. Approval recommended by Administration Committee. It was moved by Member Causey and seconded by Member Nejedly to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board. Book 63 — Page 65 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of March 6, 2014 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 8.a. was taken out of order. 5. REPORTS a. General Manager 1) Receive information on condensed version of annual staffing plan General Manager Roger Bailey stated that a summary of the item was included in the agenda packet, and Human Resources Manager Teji O'Malley was available to answer questions. Member McGill noted that the Administration Committee concurred with staff's recommendation to present a condensed version of the staffing plan. 2) General Manager Announcements a) Promotion — PJ Turnham promoted to Maintenance Planner in the Engineering Department — Capital Projects Division effective February 18, 2014 b) Public bidding for North Orinda Sewer Renovations, Phase 5, District Project 8411 c) Walnut Creek Sewer Renovation Project, Phase 10, District Project 8413 — public workshop held February 20, 2014 d) Employees to attend California Water Environment Association (CWEA) Annual Conference in Santa Clara, CA from April 29 -May 2, 2014 e) Leak in recycled water pipeline serving CONCO and Maltby Pumping Station The following announcement was distributed at the meeting: f) North Orinda Sewer Renovations Project, Phase 5, District Project 8411 — public workshop held February 27, 2014 General Manager Roger Bailey announced that staff was in the final stages of developing the Strategic Plan based on feedback received at the Board Workshop in October 2013. He asked the Board to consider the possibility of forming an ad hoc committee to review the Strategic Plan before it is brought Book 63 — Page 66 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of March 6, 2014 back to the full Board. President Williams and Member McGill volunteered to serve on the proposed ad hoc committee. District Counsel Kent Alm noted that there should be a motion to form the committee, since a stipend would be paid to its members, and that motion should include the proposed members of the committee. Member Causey suggested that, in lieu of creating an ad hoc committee, the item be referred to the Administration Committee, which was comprised of President Williams and Member McGill. The Board Members concurred with the suggestion and directed that the item be included in a future Administration Committee agenda. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced that the two closed sessions on the agenda did not need to be held. The mediation on the Tannaz Heaney case, Item 12.a., was postponed until August 2014. A modified tentative decision regarding the Contra Costa County Employees' Retirement Association (CCCERA) case, Item 12.b., was released, but the hearing would not occur until March 7, 2014. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the following upcoming Board Committee meetings: Finance Committee on March 10, 2014; Administration on March 11, 2014; and Real Estate, Environmental and Planning on March 11, 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 reported on the February 24 -26, 2014 California Association of Sanitation Agencies (CASA) Legislative Conference in Washington, D.C. and the March 4, 2014 liaison meeting with Town of Danville Town Manager Calabrigo. He noted that he would be out of the country from March 14 to April 1, 2014. Member McGill Member McGill reported on the February 6, 2014 Contra Costa Mayors' Conference hosted by the City of San Pablo featuring Tom Barnidge, columnist for the Contra Costa Times, and the February 12, 2014 Industrial Book 63 — Page 67 a CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of March 6, 2014 Association of Contra Costa County (IACCC) February Forum featuring Mark Hughes, Director of Public Affairs of Phillips 66 Refinery in Rodeo. Member Nejedly Member Nejedly and Member Pilecki, who served as Alternate for Member Causey, reported on the February 24, 2014 Finance Committee meeting. The Board received the report without comment. President Williams President Williams handed out written notes and reported on the February 24 -26, 2014 California Association of Sanitation Agencies (CASA) Legislative Conference in Washington, D.C. 2) Announcements Member McGill provided a written report covering his announcements and other meetings. He noted that the March 2, 2014 grand opening of the Pleasant Hill Recreation and Park District (PHRPD) Pleasant Oaks Park appeared under meetings for which a stipend was paid, though it was still being evaluated as payable or unpayable at the time the report was produced. It was later determined that, since Member McGill was not designated as the District's representative to the PHRPD, the meeting was not eligible for stipend. 6. ADMINISTRATIVE CONSIDER ADOPTING BOARD POLICY (BP) 013 APPROVING CHARTERS FOR EACH OF THE FOUR STANDING COMMITTEES OF THE BOARD (ADMINISTRATION; ENGINEERING & OPERATIONS; FINANCE; AND REAL ESTATE, ENVIRONMENTAL AND PLANNING). Member Pilecki requested that a goal be copied from the Finance Committee Charter to the Engineering & Operations Committee Charter, to "ensure appropriate level of internal controls." Member Nejedly stated that he would vote against the item, noting his opinion that the Committees have functioned for many years without charters, changes have been made to the Committee structure as needed, staffing that is outlined in the charters is likely to change, and approving the charters limits the scope of the Committees. Member McGill recalled that the drafting of the charters resulted from discussions held by the Board at its October 2013 Workshop. Book 63 — Page 68 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of March 6, 2014 Member Causey requested adding recycled water to the Engineering & Operations Committee Charter, since all recycled water Capital Projects will be considered by the Committee. After discussion, it was agreed upon that, since other categories projects are not listed on the charter, it was not necessary to list recycled water specifically. Member Causey commented that, to save costs, perhaps the number of staff attendees at Committee meetings could be cut, while still conveying the necessary information to the Committee Members. President Williams agreed with the sentiments expressed by Member Nejedly but noted the work to prepare the charters was done, and the charters could prove beneficial over time. He suggested that, under the goals for the Real Estate, Environmental & Planning Committee, "maximize resource recovery and recycling activities" could be replaced with "cost- effectively engage in resource recovery and recycling activities." Member Pilecki noted his agreement with Member Nejedly's statements and said that he believed that, while it was an effort to produce the charters, they will ultimately assist the General Manager. It was moved by Member McGill and seconded by Member Pilecki to adopt BP 013 — Standing Committee Charters, including the changes suggested by Member Pilecki and President Williams to the Engineering & Operations and Real Estate, Environmental & Planning Committee charters, respectively. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: Nejedly ABSTAIN: Members: None 7. TREATMENT PLANT a. ACCEPT THE 2013 RECYCLED WATER QUALITY AND DISTRIBUTION ANNUAL REPORT. ACCEPTANCE RECOMMENDED BY REAL ESTATE, ENVIRONMENTAL & PLANNING COMMITTEE. Provisional Associate Engineer Melody LaBella stated that the Recycled Water Report contains all elements required by the General Order 96 -011, and it reported that recycled water quality was in compliance, with 200 million gallons sent to customers and 400 million gallons sent to the Treatment Plant. The Concord Recycled Water Project installed 2.3 miles of new pipe, providing 70 million gallons per year to up to 36 customers, with the help of state and federal grants totaling $1.2 million to date. Toilet and urinal flushing projects were installed at Diablo Valley College and District offices, and staff continued to work with Contra Costa Water District (CCWD) on the Refinery Recycled Water Project. Book 63 — Page 69 CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of March 6, 2014 Member Nejedly requested information on household average use to help calculate impact on savings. It was moved by Member Causey and seconded by Member McGill to accept the 2013 Recycled Water Quality and Distribution Annual Report. Motion passed by unanimous vote of the Board. 8. FINANCIAL PLANNING & POLICY WORKSHOP /BRIEFING a. HOLD FINANCIAL PLANNING AND POLICY WORKSHOP /BRIEFING, INCLUDING REVIEW OF 10 -YEAR FINANCIAL PROJECTIONS FOR RATE SETTING. REVIEWED BY FINANCE COMMITTEE. Finance Administrator Todd Smithey stated that, since the first rate - setting discussion by the Board on February 6, 2014, the Finance Committee made further suggestions which have been incorporated into the model. He reported that, since the Ten -Year Plan was distributed, a number of assumptions have changed. Contra Costa County Employees' Retirement Association (CCCERA) updated its five -year rate projection based on returns from 2013. The cumulative effect of that update was a decrease of 5.71 percent of payroll over five years starting in year two, and an $11.8 million reduction in ten -year retirement expenses. The most significant change was the debt service reserve account reduction, which was less than staff's estimate and starts one year earlier than the estimate. Also, the Capital Improvement Budget (CIB) increased by $190,000 for the Equipment Budget. Member Nejedly requested that percentages of Sewer Service Charge (SSC) increase be added to the scenarios for this year and the future. The Board concurred with the suggested change. Member Causey stated his opinion that, in the future, the model assumption should always be the Consumer Price Index (CPI) at a minimum and never a zero increase, as not increasing rates were generally problematic, in his experience. Member Pilecki noted his opinion that zero rate increases in a model would give the perception that the District was not planning future rate increases. Member McGill stated that he would always like to see a scenario run with a zero rate increase to illustrate in the model when, if ever, the District gets to a point where no rate increase is necessary. He noted, however, that requesting such a scenario was only for illustrative purposes; if did not signify his support for no rate increase. President Williams summarized that, in hopes of providing criteria which limits the number of scenarios staff has to run, in general, the Board directed that scenarios should include percentages and a minimum CPI increase with the exception of a base case, with no rate increase. Book 63 — Page 70 None. CENTRAL CONTRA COSTA SANITARYDISTRICT Board Minutes of March 6, 2014 Member Causey stated that the model projects CPI increases for staffing through ten years, but, due to possible changes at the end of the current memoranda of understanding (MOU), it seemed to him that the model should not project staffing and salary increases beyond that term. He asked that next year, for staffing levels, to only look at the costs through the current MOU, then a flat amount the rest of the years as the base. He also suggested having an earlier study session next year for the Board to review the models. Mr. Smithey noted that the contracts will not have any effect on rates for the first couple of years. President Williams summarized that staff should perform no additional scenario runs this year and only add percentages to the current ones. Regarding the issue of unfunded actuarial accrued liability (UAAL), he stated his opinion that, since there is time to readjust in the next few years until payments can be safely reduced, the District should continue with its current practice. Member McGill stated that he felt the Board should proceed with the $34 increase as planned and adjust in the future as needed, noting the importance of protecting pensions and the Board's obligation to its employees. Member Pilecki stated that he was not necessarily in support of pre - payment of the UAAL, and that, with many factors that have yet to be determined and studies to be conducted, the Board can take a wait - and -see approach. General Manager Roger Bailey suggested that these options be considered in the upcoming comprehensive cost -of- service study, and the Board can come back to the issue annually to evaluate whether it is under- or over - projecting. Member Causey stated his opinion that the fact that the District has operated short of a number of permanently - filled positions suggested that there are areas in which staffing can be cut. He stated that he was not necessarily in a position where he thought the $34 increase could be approved going forward, and he was more in favor of approving a smaller number, pending the cost -of- service study and staffing assessment. He stated that he recognized that may warrant a larger increase next year, but he did not have information that indicated the $34 proposed increase made complete sense. He requested a scenario in the budget with a ten percent reduction in the Operations and Maintenance (O &M) fund for next year. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION Book 63 — Page 71 None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 6, 2014 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS 11. ANNOUNCEMENT OF CLOSED SESSION (Pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that no closed session would be held. 12. CLOSED SESSION a. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A): TANNAZ HEANEY V. CITY OF WALNUT CREEK ET AL. , CONTRA COSTA COUNTY SUPERIOR COURT CASE NO. C13- 00538. b. 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. 13. REPORT OUT OF CLOSED SESSION Closed session was not held. 14. ADJOURNMENT There being no further business to come before the Board, President Williams adjourned the meeting at 3:57 p.m. David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUIITERSIGNED: 6 4? &:). 'C" Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Book 63 — Page 72