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HomeMy WebLinkAboutBOARD MINUTES 09-04-14MINUTES OF THE MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON SEPTEMBER 4, 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, September 4, 2014. President Williams called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, Nejedly, Pilecki, McGill, Williams ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. b. INTRODUCTION None. Terrina Manor, Human Resources Analyst in the Administration Department effective September 3, 2014, was at a conference and was unable to attend the Board meeting, so she will be introduced at the September 18, 2014 Board meeting. 2. PUBLIC COMMENTS 3. AWARDS AND COMMENDATIONS a. RECEIVE THE NATIONAL ASSOCIATION OF CLEAN WATER AGENCIES (NACWA) PLATINUM 16 PEAK PERFORMANCE AWARD Plant Operations Superintendent Doug Little presented the award to President Williams for 16 consecutive years of 100 percent compliance with the District's National Pollutant Discharge Elimination System (NPDES) Permit. Mr. Little attributed the achievement to the District's proactive work culture and thanked current and past Board Members and staff for their contributions. 4. CONSENT CALENDAR a. Approve minutes of July 31, 2014 Board meeting. Book 63 — Page 180 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 b. Adopt Resolutions 2014 -026 through 2014 -030 recognizing 2014 Service Award recipients. C. Approve expenditures dated September 4, 2014. d. Receive July 2014 Financial Statements and Investment Reports. e. Adopt Resolution 2014 -031 establishing the Sewer Construction Fund and Debt Service Fund appropriations limit in the amount of $89,854,209 for Fiscal Year (FY) 2014 -15, in accordance with Article XIII B of the California Constitution and select the change in the California per capita personal income percentage for use in computing the appropriations limit. Readopt the Statement of Investment Policy (Board Policy No. BP 005) for District assets, with no changes; and approve the Investment Guidelines Document for the Government Accounting Standards Board (GASB) 45 Trust, also with no changes. g. Set October 2, 2014 at 2:00 p.m. as the date and time for a public hearing to consider adopting an uncodified ordinance to establish the document entitled: CCCSD Standard Specifications for Design and Construction, 2014 Edition, in accordance with District Code Section 9.08.010. h. Adopt Resolution 2014 -032 approving changes to the District's Conflict of Interest Code and directing the Secretary of the District to complete the 2014 Conflict of Interest Code Biennial Notice. Authorize General Manager's attendance at the Utility Executive Leadership Institute in Kirkland, Washington from September 10 -13, 2014. Authorize the General Manager to amend an existing professional consulting services agreement with NexLevel Information Technology, Inc., to increase the contract ceiling from $12,800 to $140,000 for security remediation resulting from the recent network vulnerability assessment, District Project 8195CY. k. Establish, add and authorize the filling of a Collection System Maintenance Scheduler position (G -67, $6,514 - $8,003); and delete a vacant Maintenance Crew Leader position (G -67, $6,514 - $8,003). Approval recommended by Administration Committee. Authorize implementation of Option 4B under the newly established Bay Area Commuter Benefit Program ( BACBP) to ensure the District's compliance with the BACBP as of September 30, 2014. Approval recommended by Administration Committee. m. Authorize the Board President to enter into a contract with Industrial Employers Distributors Association (IEDA) to provide labor negotiation services for the District Book 63 — Page 181 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 for the period October 2014 through January 2018 at an estimated cost of $90,000. Approval recommended by Administration Committee. Waive non - material omission and award a construction contract in the amount of $396,246 to Corrpro Companies, Inc., the lowest responsive and responsible bidder for construction of the Cathodic Protection, Phase 1, District Project 8425; find that the project is exempt from California Environmental Quality Act (CEQA); and authorize the General Manager to execute the contract documents subject to submittal requirements. Reviewed by Engineering & Operations Committee. Member Causey requested that Item 4.n. be pulled for separate consideration. Member Nejedly requested that Items 4.c. and 4.d. also be pulled. It was moved by Member Pilecki and seconded by Member Causey to adopt Items 4.a., 4.b., and 4.e.— 4.m. Motion passed by unanimous vote of the Board. Regarding Items 4.c. and 4.d., Member Nejedly stated that, since the Finance Committee did not meet as scheduled on August 25, 2014 to review the items, he did not have his questions answered and would abstain on both items. In response to a question from President Williams, General Manager Roger Bailey stated that Board approval of the Expenditures and Financial Statements and Investment Reports is not time sensitive, as confirmed to him by District Counsel Kent Alm. It was moved by Member McGill and Member Causey to continue Items 4.c. and 4.d. pending recommendation from the Finance Committee. Motion passed by unanimous vote of the Board. Member Causey noted that the project in Item 4.n. appears to be a combination of two projects. He asked how the costs will be allocated between the two and stated that it appeared there is not adequate money budgeted for construction. General Manager Roger Bailey stated that staff has the authority to move the money around, but bringing an item like this to the Board is a way to do this with transparency in mind for both the Board and the public. Member Pilecki proposed that the second full paragraph of page three of the Position Paper be struck, as it erroneously states that the Board authorized allocation budgets for the two projects. He clarified that the Board authorizes program budgets, not budgets on a project -by- project basis. Member Pilecki stated that the language is not consistent with the Capital Improvement Budget (CIB), and it limits staff's abilities to allocate funds within authorized limits. He also suggested that the Remaining Funds Returned to Program line be struck from the Post - B id /P reconstruction Estimate, because staff does not return funds that have never been allocated to a program. Book 63 — Page 182 None. N CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 It was moved by Member Pilecki to adopt Item 4.n. with the changes he proposed to the Position Paper. Motion died for lack of a second. President Williams agreed with Member Pilecki's comment regarding the inconsistency of the Position Paper with the CIB, adding that if the Board approved a policy for allocating funds via the CIB, there should be no backtracking on that policy. It was moved by Member McGill and seconded by Member Nejedly to adopt Item 4.n. as presented by staff in the Position Paper. Member Pilecki amended the motion made by Member McGill to include the understanding that the Board action would not set a precedent for the future. Members McGill and Nejedly accepted the amendment. Motion passed by the following vote of the Board: AYES: Members: McGill, Nejedly, Pilecki, Williams NOES: Members: Causey ABSTAIN: Members: None 5. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 6. REPORTS GENERAL MANAGER 1) General Manager Announcements The following announcements were included in the agenda packet: a) Associate Engineer Nathan Hodges to Attend the 29th Annual WateReuse Symposium in Dallas, Texas — September 7 -9, 2014 b) Napa Earthquake — CCCSD Condition Assessment and Aid Provided to Napa Sanitation District The following announcements were made at the meeting: C) Update on CCCSD Condition Assessment and Aid Provided to Napa Sanitation District in response to Napa Earthquake d) Kiewit Property and CoCo San Sustainable Farm Update Book 63 — Page 183 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 e) Payment Received for Concord Landscape Project Grant f) Board President Williams to Speak at Master Gardeners Sustainability Fair on Saturday, September 6, 2014 g) Board President Williams Assumed the Presidency of California Association of Sanitation Agencies (CASA) during the August 20 -23, 2014 CASA Conference in Monterey b. COUNSEL FOR THE DISTRICT 1) Announce closed session (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced Closed Session Items 11.a. and 11.b. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming meetings of the Finance Committee on September 8 at 3:00 p.m.; Real Estate, Environmental & Planning Committee on September 9 at 3:00 p.m.; and Administration Committee on September 11 at 8:00 a.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 Member McGill Member McGill and President Williams reported on the August 19, 2014 Administration Committee meeting. The Board received the report without comment. Member McGill also reported on the August 20 -23, 2014 California Association of Sanitation Agencies (CASA) Conference in Monterey. Member Neiedly Member Nejedly and Member McGill reported on the August 19, 2014 Real Estate, Environmental & Planning Committee meeting. The Board received the report without comment. Following a discussion regarding the proposed joint meeting with Contra Costa Water District (CCWD) officials, General Manager Roger Bailey stated Book 63 — Page 184 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 that he will develop an agenda and provide that agenda to the Board for its input prior to the meeting. Member Pilecki Member Pilecki and Member Causey reported on the August 25, 2014 Engineering & Operations Committee meeting. 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 None. 7. BUDGET AND FINANCE a. RECEIVE CAPITAL IMPROVEMENT BUDGET (CIB) JUNE 30, 2014 YEAR -END STATUS REPORT. REVIEWED AND RECEIPT RECOMMENDED BY ENGINEERING & OPERATIONS COMMITTEE Provisional Capital Projects Division Manager Edgar Lopez stated that $29.5 million was budgeted for FY 2013 -14 Capital Program activity, and only $26.8 million was spent, the same as Fiscal Year 2012 -13. Revenues were budgeted at $25.2 million, and $26.9 million was received. While deficit spending was budgeted at $4.3 million, the actual reduction in Sewer Construction Fund balance was only $0.1 million. Mr. Lopez briefly reviewed the major projects in each of the following four programs: Treatment Plant, Collection System, General Improvements, and Recycled Water. The Board received the CIB June 30, 2014 Year -End Status Report. b. RECEIVE PRE -AUDIT YEAR -END FINANCIAL RESULTS SUMMARY FOR FISCAL YEAR 2013 -14 Director of Administration David Heath compared budgeted versus actual results for Operations and Maintenance (O &M) revenue and expenses for FY 2013 -14. Actual revenues exceeded budget by $0.98 million and expenses were $0.42 million less than anticipated, for a total positive variance of $1.4 million. Book 63 — Page 185 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 As of June 30, 2014, the total favorable variance for the Sewer Construction Fund (SCF) was $4.46 million. For all four funds (SCF, O &M, Self- Insurance, and Debt Service), the combined favorable variance was $5.94 million. The Board received the Pre -Audit Year -End Financial Results Summary. 8. COST OF SERVICE STUDY — BOARD WORKSHOP NO. 3 a. COST OF SERVICE STUDY — DISCUSS POLICY ISSUES ASSOCIATED WITH RECYCLED WATER PROGRAM: 1) HISTORY OF RECYCLED WATER PROGRAM Environmental Services Division Manager Danea Gemmell presented a history of the District's Recycled Water Program, beginning in 1959 with the adoption into law of the Porter - Cologne Act, and continuing in 1972, when the Central San Board executed a Contra Costa Water District (CCWD) Water Supply Contract for 20 million gallons a day (MGD). On December 12, 1985, a pivotal Environmental Protection Agency (EPA) / State Water Resources Control Board (SWRCB) Settlement was signed for the 5A Project. In this termination agreement, due to major underutilization of Filtration Plant (Phase II facilities), the District agreed to a number of stipulations that now drive the current Recycled Water Program. Currently, via this settlement agreement commitment, the Recycled Water Program uses 1.1 MGD of recycled water in plant processing, 1.5 MGD in retail customers, and maintains 1.2 MGD in available capacity. In the future, wholesale supply could be provided to industrial refineries at 5 to 20 MGD and /or the Concord Naval Weapons Station at 5.8 MGD. 2) RECYCLED WATER POLICY Sudhir Pardiwala of Raftelis Financial Consultants gave a presentation on the current Recycled Water Program and options for future policies. He stated the current program is necessary to meet the requirements of the EPA / SWRCB settlement agreement. Recycled water sales revenue could be used to offset recycled water costs based on market conditions, but wastewater users pay for the remaining system costs, which is appropriate under Proposition 218. President Williams asked questions regarding the obligation under the settlement agreement, if rebuild costs are cost effective, the end date of the agreement, and the costs of the obligations. He asked about discussing expansion with CCWD and stated that he was not in favor of performing actions beyond what is required in the agreement. General Manager Roger Bailey stated that the District needs to maintain a defensible position regarding Proposition 218 and stated that this would need to be examined, as well as Board's interest in pursuing a different cost recovery model. Book 63 — Page 186 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 Mr. Pardiwala stated that Raftelis would return with current and future cost information. President Williams stated that he was not in favor of changing the status quo and he was concerned about going forward and the potential to spend more money. He encouraged District representatives to ask CCWD officials whether they believe they have a water supply problem. None. None. Member Pilecki and Member Causey both stated that they needed more data to formulate an opinion on how to change the Recycled Water Program, if at all. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS 11. CLOSED SESSION The Board recessed at 4 :39 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., Court of Appeal, 1St Appellate District, Division Four, Case No. A141913. b. CONFERENCE T EXPOSURE TO LITIGATION PURSUANT DTO GOVERNMENT SIGNIFICANT CODE SECTION 54956.9(8): • One potential case The Board recessed at 5 :31 p.m. to reconvene in the Board Room in open session. Book 63 — Page 187 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of September 4, 2014 12. ADJOURNMENT There being no further business to come before the Board, President Williams adjourned the meeting at 5:31 p.m. ;JA'te-'P /J(- 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 Book 63 — Page 188