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HomeMy WebLinkAbout03.a. Approve minutes of May 15, 2014 Board meetingMINUTES OF THE REGULAR MEETING 3.a OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 15, 2014 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, May 15, 2014. President Williams called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, McGill, Pilecki, Williams ABSENT: Members: Nejedly 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. PRESENTATION BY THE DISTRICT OF WASTEWATER AND WATER AGENCIES "EXCELLENCE IN WATER RESEARCH" AWARD TO A STUDENT COMPETITOR IN THE CONTRA COSTA COUNTY SCIENCE AND ENGINEERING FAIR HELD IN MARCH Senior Engineer Thomas Brightbill stated that 260 students in grades 7 through 12 participated in this year's Contra Costa County Science and Engineering Fair, which was judged in part by three District staff members, including himself. As one of six judges for the Junior Engineering Division, Mr. Brightbill was impressed by the knowledge and effort of the 7th and 8th graders in his division. The regional Excellence in Water Research Awards were awarded for the second time, as a result of combined efforts by ten Alameda County and 11 Contra Costa County water and wastewater agencies. Mr. Robin Joseph, a sophomore at De La Salle High School in Concord, won second place in the Senior Division for his research on microbial fuel cells and for conducting a scientific experiment contributing to the field of water research for future generations. Mr. Joseph's teacher, Victoria Aquistapace, was unable to attend the meeting but will receive a monetary prize. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 Mr. Joseph described his project entitled, "Is Corn Stover Wastewater a More Efficient Fuel Source for the Microbial Fuel Cell than Wastewater from Meat ?" President Williams presented Mr. Joseph with his award and check, congratulating him and noting that alternative energy will be a field of great importance in the future. 4. CONSENT CALENDAR a. Approve minutes of Board meetings held on the following dates: April 10, 2014 (Special meeting); and April 17, 2014. b. Approve expenditures dated May 15, 2014. Approval recommended by Finance Committee. C. Set public hearing for June 19, 2014 at 2:00 p.m. to receive comments on confirming and levying final assessments for Smith Road Contractual Assessment District (CAD) No. 2012 -1, directing that the Fiscal Year 2014 -15 assessment be collected on the Contra Costa County tax roll; and considering adoption of an ordinance (uncodified) to establish reimbursement fees for the properties which could directly connect to District Project 5773 (Smith Road CAD 2012 -1) in Alamo. d. Adopt Resolution 2014 -011 rescinding Resolution 2008 -109 and setting forth updated procedures for appointment to and establishment of Board Committees, meeting compensation, and expense reimbursement for Board Members. Approval recommended by Administration Committee. It was moved by Member Causey and seconded by Member McGill to adopt the Consent Calendar as recommended. Motion passed by unanimous vote of the Board Members present. None. 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 6. BIDS AND AWARDS a. DECLARE BID FROM INDUSTRIAL COATING AND RESTORATION NON RESPONSIVE; AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $617,000 TO W.M. LYLES COMPANY, THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE DAF TANKS RENOVATION, DISTRICT PROJECT 7309; FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA); AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; APPROVE CONTINGENCY PROJECT FOR $866,550; AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $267,000 TO 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 THE TREATMENT PLANT PROGRAM CONTINGENCY ACCOUNT OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET (CIB) General Manager Roger Bailey stated that, in April 2013, Dissolved Air Flotation (DAF) Tank 1 required emergency repairs as a result of significant corrosion and failure of the rotating skimmer arms. The DAF system is used to thicken secondary sludge and plays a critical role in the furnace sludge process. Based on inspections, staff and consultants recommended that the other two tanks receive new protective coatings, structural repairs, arms replacement in Tank 2, and electrical upgrades. Overall, this project will increase the reliability and extend the useful life of the system and improve corrosion protection based on lessons learned last year. Staff recommended the project be exempt from the California Environmental Quality Act (CEQA) process and declare that the bid from the apparent low bidder, Industrial Coating and Restoration, was non - responsive because a form required by statute was not submitted with the bid packet. District Counsel reviewed the matter and concluded that the second lowest bid from W.M. Lyles Company was, in fact, the lowest responsive and responsible bid. Member Pilecki noted that the Engineering & Operations Committee received a report regarding this matter at its April 21, 2014 meeting and concurred with staff's recommendation. It was moved by Member Pilecki and seconded by Member Causey to declare the bid from Industrial Coating and Restoration non - responsive; award a construction contract in the amount of $617,000 to W.M. Lyles Company, the lowest responsive and responsible bidder for the DAF Tanks Renovation, District Project 7309; find that the project is exempt from California Environmental Quality Act (CEQA); authorize the General Manager to execute the contract documents subject to submittal requirements; approve contingency project for $866,550; and approve a supplemental authorization of $267,000 to the Treatment Plant Program contingency account of the Fiscal Year 2013 -14 Capital Improvement Budget (CIB). Motion passed by unanimous vote of the Board Members present. b. DECLARE BID FROM 3D DATACOM NON - RESPONSIVE; AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $305.327 TO MIKE BROWN ELECTRIC COMPANY, THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE PUMP STATION SECURITY UPGRADES, DISTRICT PROJECT 8406; FIND THAT THE PROJECT IS EXEMPT FROM CEQA; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS General Manager Roger Bailey stated that District staff identified safety and security concerns at several pumping stations. These stations have obsolete, inoperable, or nonexistent video surveillance, fire alarm, or intrusion alarm systems. Deficiencies with these systems result in significant safety and liability exposure to the District. Due to recent incidents and the remote locations of the pumping stations, staff decided to evaluate and design a project to improve these systems. The Pump Station Security Upgrades, District Project 8406, will add new or upgrade existing 3 a CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 video surveillance, fire alarm, and /or intrusion alarm systems at the highest priority pumping stations. As explained in the position paper, it was determined that the bid from the apparent low bidder, 3D Datacom, was non - responsive because a required form was not submitted with the bid packet. District Counsel reviewed the matter and concluded that the bid from Mike Brown Electric Company was in fact the lowest responsive and responsible bid. Responding to comments that the same form was missing from both of the bids being considered by the Board, Capital Projects Division Manager Andrew Antkowiak outlined plans to consult with legal counsel on how to make the form less likely to be missed in the future. He did note, however, that the two bidders in question were the only two who missed the form of all the bidders. In response to a question from Member Causey whether the Engineering & Operations Committee made a recommendation on the matter, Mr. Antkowiak stated the Committee reviewed the item but made no clear recommendation. It was moved by Member Pilecki and seconded by Member McGill to declare the bid from 3D Datacom non - responsive; award a construction contract in the amount of $305,327 to Mike Brown Electric Company, the lowest responsive and responsible bidder for the Pump Station Security Upgrades, District Project 8406; find that the project is exempt from CEQA; and authorize the General Manager to execute the contract documents subject to submittal requirements. Motion passed by the following vote of the Board: AYES: Members: McGill, Pilecki, Williams NOES. Members: Causey ABSENT: Members: Nejedly 7. REPORTS GENERAL MANAGER 1) Presentation by Association of California Water Agencies (ACWA) Executive Director Timothy Quinn on ACWA's Statewide Water Action Plan (SWAP) Mr. Timothy Quinn discussed the Association of California Water Agencies (ACWA)'s Statewide Water Action Plan (SWAP), which outlines 15 actions to improve water supply reliability, protect water rights, protect the integrity of the state's water system, and promote better stewardship. It also includes guiding principles for implementation of the plan to help ensure the actions benefit the entire state, respect water rights and contract terms, and reflect a new regulatory approach that can better meet the needs of California water users and ecosystems. He encouraged the District, as one of ACWA's member agencies, to support the plan. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 In response to questions asked by the Board regarding recycled water, Mr. Quinn stated the importance of recycled water to the SWAP and the state's water supply, and the role of the special districts. He stated the need to determine clearly how to finance these projects and move them forward, emphasizing that financing must not impede the ability to move forward with the SWAP. Member McGill stated his support for the Board to consider a resolution in support of the SWAP and asked that such an item be placed on a future agenda. He posed the question of where responsibility lies and stated that it is somebody's responsibility, and since everyone uses water collectively as a society, a solution must be reached. Member Causey stated that the industry is in a fractured state, and until a shared mindset can be reached, it is important to unite coalitions and other groups, including both clean water and wastewater agencies, to encourage the legislature to hear "one water" versus different waters. Member McGill requested that staff draft a sample resolution of support and recommended that the Board also consider encouraging the California Association of Sanitation Agencies (CASA) to adopt a similar resolution in support. Member Pilecki stated that some see recycled water at the District as a duplication of services issue, doubling the cost for the District to supply water. District Counsel Kent Alm explained there is a provision in the Public Utilities Code where an agency may regain lost profits if another agency duplicates its services. Mr. Quinn stated that he was not aware of any statutory impediments to agencies being able to provide recycled water and that ACWA would be interested in addressing such issues. Member Causey suggested that Delta Diablo General Manager Gary Darling be consulted, since duplication of services was once an issue for that agency. President Williams thanked Mr. Quinn for taking the time to present to the Board. 2) Provide direction to staff as to whether a comment letter should be prepared on the Bay -Delta Conservation Plan (BDCP) Environmental Impact Report (EIR) / Environmental Impact Statement (EIS) General Manager Roger Bailey stated that, if the Board would like to submit a public comment letter on the EIR /EIS of the BDCP, staff could draft one and bring it back to the Board for discussion. The deadline to submit comments is June 13, 2014; however, the Board is not under any obligation to take a position. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 Member McGill stated that the East Bay Leadership Council would be discussing the letter tomorrow, at which time he volunteered to relay comments from the Board. He stated that, in his opinion, the issue needs to be dealt with in a bigger context, but he would like to see the District have a voice and take a position on the matter. District Counsel Kent Alm stated that Provisional Associate Engineer Melody LaBella's recommended approach was to take no position for or against the BDCP, but to address the recycled water issue and /or raise technical issues that would be of interest to the District. Member Pilecki stated that, if the Board takes any action, he would support a comment to include recycled water in the EIR /EIS, as it is not currently included. General Manager Roger Bailey stated that staff could make a list of items it would like to see included in the BDCP. President Williams stated that the water issue in California is so complex, and, as a Board Member, he would be reluctant to weigh in on something he did not fully understand. That sort of understanding would take years of experience, which could not be substituted by a staff report. He stated that the Board could raise questions as appropriate, but even that would be unfamiliar to him. Member McGill echoed Member Pilecki's suggestion, stating that the Board could say it did not believe that recycled water was adequately addressed. General Manager Roger Bailey confirmed with the Board that its direction was to ask staff to draft a letter to submit as public comment, which would be brought back to the Board for consideration prior to submission. 3) Report on outcome of staff's efforts with customers and other agencies concerning improvements to the permitting process (resulting from changes implemented during the permit counter connection fee recovery process) General Manager Roger Bailey stated that, over the past 18 months, the Development Services staff has made many changes at the Permit Counter and in the working relationship with other agencies to rectify issues raised in 2012 during the connection fee recovery process. Senior Engineer in the Environmental Services Division, Tom Godsey, provided an update on the changes and the outcomes to this point. He stated that many vacancies were created by advancements and retirements; Kim Stahl was hired as Development Services Supervisor at the permit counter; SunGard provided specialized in -house training to staff in December 2013; staff revised procedures for fee collection and aging of permits; as part of seismic improvements, the permits were converted to a digital library, and the CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 vault was turned into a plan review room. In terms of outreach, he and Development Services Supervisor Paul Kelly met with other agencies throughout 2013 to talk about process improvements. President Williams suggested that the permit application process include a form or box to check, to which Mr. Godsey replied that jurisdictions have been open to that. In closing, Mr. Godsey reported that staff will host its first "Sewer Summit' later this month to increase the lines of communication on a variety of topics. Nearly 50 attendees representing nine agencies, including the City of Concord, have pre- registered. Member Causey suggested that staff evaluate the idea of doing the summit every year. 4) General Manager Announcements The following announcements were distributed with the agenda packet: a) Finance Manager Thea Vassallo to Attend Government Finance Officers Association (GFOA) 108th Annual Conference in Minneapolis, MN from May 18 -21, 2014 b) Public Bidding for Sewer CCTV Inspection Project No additional announcements were distributed at the meeting. b. COUNSEL FOR THE DISTRICT None. C. SECRETARY OF THE DISTRICT None. 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 McGill Member McGill stated the Administration Committee met on May 13, 2014 and the Action Summary would be included in the May 15, 2014 Board agenda packet. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 Member McGill reported on the May 1, 2014 Contra Costa County Mayors Conference hosted by the City of Concord featuring a presentation regarding homelessness in our communities. Member Pilecki Member Pilecki reported on the April 28, 2014 Engineering & Operations Committee meeting, which was also attended by Member Causey. The Board received the report without comment. Member Pilecki, who served as Alternate for Chair Causey, reported on the May 5, 2014 Finance Committee meeting, which was also attended by Member Nejedly. The Board received the report without comment. 2) Announcements Member McGill provided a written report covering his announcements and other meetings. 3) Board Member requests for advance authorization to receive a stipend for meeting attendance not specifically addressed in the current Board Compensation Resolution Member Causey stated that he would be making a short presentation to the Town of Danville Council on May 20, 2014. The Board Members present authorized a stipend by consensus. President Williams noted that the Board should be receiving award ceremony invitations from East Bay Municipal Utility District (EBMUD) shortly, an event for which a stipend will not be paid unless requested in advance. 4) Provide voting direction regarding proposed amendments to California Special Districts Association (CSDA) Bylaws Member McGill stated that he is the District's CSDA representative, and the proposed bylaw amendments included general clean -up to reflect updates and organizational changes over the last three years, clarifying language regarding the board nomination and election process, updates to various committee definitions and title, and clarification of CSDA affiliated chapters. He stated that he did not see any issues, nor did the Secretary of the District Elaine Boehme, when he consulted her, therefore, he requested he be authorized to vote in favor of the bylaw amendments. The Board Members present directed Member McGill to vote to approve the proposed amendments. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 8. BUDGET AND FINANCE a. RECEIVE THE FISCAL YEAR 2014 -15 OPERATIONS AND MAINTENANCE BUDGET AND DEBT SERVICE FUND BUDGET Finance Manager Thea Vassallo presented a summary of the proposed Fiscal Year 2014 -15 Operations and Maintenance (O &M) and Debt Service Fund Budgets, which were distributed to the Board at its May 1, 2014 meeting and reviewed by the Finance Committee at its May 5, 2014 meeting. Revenue assumptions include a Sewer Service Charge (SSC) rate of $439 per Residential Unit Equivalent (RUE), which includes the proposed $34 increase. Of that amount, $416 per RUE, or $69,447,000, is allocated to O &M. Anticipated O &M reimbursement revenue from the City of Concord is $13.5 million. Ms. Vassallo stated that the top expense assumptions include an $8.1 million allocation for Governmental Accounting Standards Board (GASB) 45 Other Post - Employment Benefits (OPEB) benefits; another $5 million early pay down of the Contra Costa County Employees' Retirement Association (CCCERA) Unfunded Actuarial Accrued Liability (UAAL); increases to healthcare costs for active employees and retirees; and vacancy factors of two percent for salaries and three percent for benefits, which is unchanged from last year. Total revenues are budgeted at $86,231,600 and expenses at $88,198,895, for a net O &M loss of $1,967,295. Ms. Vassallo said ad valorem tax is anticipated to be $12.4 million during Fiscal Year 2014 -15, $5.6 million of which will be allocated to the Debt Service Fund to cover interest and principal on the District's outstanding bonds. The remaining balance will go to the Sewer Construction Fund. O &M reserves at June 30, 2015 are expected to be $11.2 million. Public hearings on both the O &M and Debt Service Fund budgets will be held June 5, 2014. Member Causey expressed concerns with reducing the capital portion of the SSC below where it is, given the need to finance rehabilitation of assets. General Manager Roger Bailey stated that the cost -of- service study will provide an opportunity to look at that issue, and the Board will have to decide on its policies. He noted that the budget presented reflects what was requested by the Engineering Department for the upcoming fiscal year. No requests were sacrificed to balance the O &M budget, and every request was reflected in the rate model. Following discussion on the training budget, President Williams requested an overview of costs related to travel, training, conferences, and leadership events. Member Causey stated that he would like to see the District be more invested in the leadership institute in North Carolina. Member Pilecki noted that, since the Board will be setting rates next year, he encouraged completing the cost -of- service study as soon as possible. None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 Member Causey expressed concern over the lack of progress in certain areas, citing a list he had compiled of ongoing matters that he would like addressed by the Board sooner rather than later. The list included the cost -of- service study, financial transparency, Unfunded Actuarial Accrued Liability (UAAL) payments, a two -year budget, creation of a Recycled Water fund, staffing assessment, O &M versus capital funding, capital program transparency, training philosophy, and targeted increases for the O &M budget. He stated his opinion that the Board needs to hold a financial workshop in the near future to be sure these issues are addressed prior to the next budget cycle. General Manager Roger Bailey and President Williams requested that Member Causey furnish his list to the General Manager, who will provide the current status of each item so the Board may review and prioritize the issues as needed at the next meeting. Member Causey stated that the UAAL involves an advance payment at the beginning of each year, which brings the question for him if that drawdown on the cash flow is sustainable. He also stated his opinion that the Board should discuss a reserve policy. He stated that if the items are unresolved a year from now, he would be inclined to recommend freezing the budgets until they are completed. Regarding the UAAL, Member Pilecki recalled that he raised concerns at a previous meeting of paying the amount down too quickly, which could lead to superfunding, and that Member McGill made a suggestion, which he supported, to explore the option of creating a separate fund similar to how the District handles Governmental Accounting Standards Board (GASB) 45. He requested that Board consider that at the time of rate setting next year. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS As decided during Item 8., staff will provide a status report at the June 5, 2014 meeting on the list of issues that Member Causey raised as areas he would like staff to address sooner rather than later, so as to allow the Board Members an opportunity to prioritize the list. Member McGill suggested adopting a proposed resolution in support of the Association of California Water Agencies' (ACWA) Statewide Water Action Plan (SWAP). Member McGill also suggested considering whether to encourage that California Association of Sanitation Agencies (CASA) adopt a similar resolution in support of SWAP. Member Pilecki requested an update on the computer virus recently experienced at the District, of which the Board was notified on May 1, 2014 10 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 15, 2014 11. ANNOUNCEMENT OF CLOSED SESSION (Pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced Closed Session Item 12.a. 12. CLOSED SESSION The Board recessed at 4:07 p.m. to reconvene in closed session in the Caucus Room regarding the following matter: a. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A): SCHAEFFER. ET AL. V. GREGORY VILLAGE PARTNERS, L.P., CENTRAL CONTRA COSTA SANITARY DISTRICT, ET AL., CONTRA COSTA COUNTY SUPERIOR COURT CASE NO. MSC11- 01307. The Board recessed at 5:45 p.m. to reconvene in the Board Room in open session. None. 13. REPORT OUT OF CLOSED SESSION 14. ADJOURNMENT There being no further business to come before the Board, President Williams adjourned the meeting at 5:45 p.m. 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, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California M