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HomeMy WebLinkAboutBOARD MINUTES 08-14-14MINUTES OF THE SPECIAL MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 14, 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, August 14, 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. CONSENT CALENDAR a. Approve minutes of July 17, 2014 Board meeting. b. Approve expenditures dated August 14, 2014. Approval recommended by Finance Committee. C. Confirm the publication of summaries of uncodified District Ordinance Nos. 280, 281, and 282. d. Adopt Resolution 2014 -025 accepting a grant of easement (related to the North Orinda Sewer Renovation Project, Phase 5, District Project 8411) from Thomas Jean Appelbaum and Jeanne Appelbaum, owners of the property located at 19 Loma Vista Drive in Orinda; and authorizing staff to record the document with the Contra Costa County Recorder. 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. Book 63 — Page 174 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of August 14, 2014 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. REPORTS a. GENERAL MANAGER 1) Semi - annual report on status and pricing of natural gas purchases At the March 20, 2014 Board meeting, the Board requested semiannual updates on the status of natural gas purchases. Senior Engineer Craig Mizutani reported that natural gas is the District's largest non -labor Operations and Maintenance (O &M) expense, at $2.4 million during Fiscal Year (FY) 2014 -15. Currently, the District pre - purchases natural gas from Shell Energy. The General Manager is authorized to do this at a $6 per MMBtu limit, a system which allows staff to react to the market with checks and balances. The District recently completed the pre - purchase of natural gas for 2015, and the current prices are stabilizing at $4.65 per MMBtu for 2015 and $4.75 per MMBtu for 2016. For the remainder of 2014, the District will be purchasing one third of its natural gas on the spot market at $5.00 per MMBtu. The target price to meet the FY 2014 -15 budget is $4.80 per MMBtu. Member Causey encouraged staff to explore ways to reduce costs and the District's reliance on natural gas by exploring alternative energy sources. Member Pilecki noted that until the incinerators are replaced, alternative energy sources will not provide much impact as the District is a steam - driven plant. However, the Plant of the Future study will keep the need to consider alternative energy in mind. In response to a question from President Williams, Mr. Mizutani said approximately one third of the plant's natural gas needs are met with compressed landfill gas, which costs roughly 75 percent of the cost of natural gas. 2) General Manager Announcements The following announcements were included in the agenda packet: a) Professional Cleaning of the Solids Conditioning Building b) Compromise Reached on Reimbursement Fee for 20 Camino Monte Sol in Alamo Book 63 — Page 175 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of August 14, 2014 C) Update on Recent Election for California Special Districts Association Board Members The following announcements were made at the meeting: d) AT &T Outage Disrupts Phone and Internet Service to the District e) General Manager Roger Bailey announced that he received a message from Member Nejedly that, since he was out of town, he would not be able to attend the Board meeting and apologized for his absence. b. COUNSEL FOR THE DISTRICT 1) Written Legal Update District Counsel Kent Alm referred to his report in the agenda packet. He stated that it may or may not have noted that the dispute with Acme Landfill has been resolved. Other than that, there has been a normal flow of work for his office over the last few months. 2) Announce closed session (pursuant to Govemment Code Section 54957.7) District Counsel Kent Alm announced Closed Session Items 9.a. and 9.b. C. SECRETARY OF THE DISTRICT 1) Update on candidates running for District Board Member in the upcoming November election Secretary of the District Elaine Boehme announced that no election will be held because no other candidates filed nomination papers. Both incumbents, President Williams and Member McGill, will be appointed in lieu of election. 2) Upcoming Committee meetings Ms. Boehme announced the August 19, 2014 Administration Committee meeting at 8:00 a.m. in the Executive Conference Room and Real Estate, Environmental & Planning Committee meeting at 3:00 p.m. in the Second Floor Conference Room. 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 63 — Page 176 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of August 14, 2014 Member Causey Member Causey reported on the August 1, 2014 Finance Committee meeting. Member Nejedly was present at the Committee meeting but not at the Board meeting to report on it. The Board received the report without comment. Member Causey noted that he will be attending the upcoming California Association of Sanitation Agencies (CASA) Conference in Monterey, but not at District expense. Member McGill Member McGill reported on the August 7, 2014 Contra Costa County Mayors Conference hosted by the City of Lafayette featuring presentations by Joe Campbell of Contra Costa Water District and John Coleman of East Bay Municipal District on how the two agencies are working together to manage through the California drought, create jobs, and boost the local economy. Member McGill also noted that he will be attending the upcoming CASA Conference in Monterey. President Williams President Williams noted he will be attending the upcoming CASA Conference in Monterey, but not at District expense. 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 None. 6. COST OF SERVICE STUDY — BOARD WORKSHOP NO. 2 a. COST OF SERVICE PRICING OBJECTIVES AND STAFFING NEEDS ASSESSMENT UPDATE Mr. Sudhir Pardiwala, Executive Vice President of Raftelis Financial Consultants, described the pricing objectives study and discussed alternative sewer rate structures for residential and non - residential customers, as well as capacity fees. He identified various approaches to capacity fees, including a buy -in approach, incremental cost approach, and a hybrid combining the first two approaches. The Book 63 — Page 177 None. None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of August 14, 2014 hybrid approach is most commonly used by other agencies. In terms of asset valuation, Mr. Pardiwala said replacement cost less depreciation is the most commonly used method. Mr. Tom Am, Principal Consultant of Raftelis, briefly reviewed the ongoing Staffing Needs Assessment which is comprised of an electronic employee survey as well as small work group interviews. He said the focus of the Staffing Needs Assessment is to strengthen and optimize organization -wide processes, resource allocation and structure, and provide the means to meet emerging workforce support and succession management needs. Mr. Am equated the process to a "tune up," adding that organizations that undergo these types of assessment tend to be industry leaders. Member Causey suggested that the District obtain values from developers when it obtains easements, so their value may be added to the asset register. He also asked that a question be added in the employee survey to indicate the age range of the survey- taker. Member McGill noted that the ratepayers, employees, and environment are most important to him. While fiduciary responsibility must be exercised, he stated his opinion that it should not be done at the price of damaging or disrupting staff. He expressed concern about any misperceptions among staff that the Cost of Service Study and Staffing Needs Assessment were being conducted as a means to consider reducing staffing levels. He said that was not the case and emphasized his belief that the District's employees do a great job. President Williams stated the importance of conducting rate and staffing needs assessments periodically to make sure the District is properly aligned. Employee input is a key part of those studies and it is important to dispel the notion that the operation is being done with the purpose of cutting staff because that has never been a direction he has given. Member Pilecki echoed President Williams' comments, adding that the study is an opportunity for the employees to provide feedback to the Board. 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 8. SUGGESTIONS FOR FUTURE AGENDA ITEMS Book 63 — Page 178 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of August 14, 2014 9. CLOSED SESSION The Board recessed at 3:47 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): • 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. b. CLOSED SESSION PURSUANT GOVERNMENT CODE SECTION 54957(A) MATTERS POSING A THREAT TO SECURITY OF ESSENTIAL PUBLIC SERVICES - WASTEWATER: • Consultation with District Counsel and Information Technology (IT) consultant Joseph Blackwell, Principal, NexLevel, Inc. The Board recessed at 4:40 p.m. to reconvene in the Board Room in open session. None. 10. REPORT OUT OF CLOSED SESSION 11. ADJOURNMENT There being no further business to come before the Board, President Pro Tern McGill adjourned the meeting at 4:40 p.m. o ✓ COUNTERSIGNED: 01 David R. William b President of the Board of Directo s Central Contra Costa Sanitary District County of Contra Costa, State of California Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Book 63 — Page 179