Loading...
HomeMy WebLinkAboutBOARD MINUTES 03-05-15 (Special)MINUTES OF THE SPECIAL MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 5, 2015 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 1:00 p.m. on Thursday, March 5, 2015. President McGill called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, Nejedly, Pilecki, Williams, McGill ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. b. INTRODUCTION None. The Board welcomed new employee Alan T. Steingass, Utility Worker in the Operations /Collection System Operations Department, effective February 18, 2015. 2. PUBLIC COMMENTS 3. CONSENT CALENDAR a. Approve minutes of February 5, 2015 Board meeting. b. Approve expenditures dated March 5, 2015. Approval recommended by Finance Committee. C. Receive January, 2015 Financial Statements and Investment Reports. Approval recommended by Finance Committee. d. Adopt Resolution 2015 -005 accepting an easement relocation agreement related to the Martinez Sewer Renovations, Phase 4, District Project 8415, from Pacific Gas and Electric Company (PG &E); and authorizing recording of the document with the Contra Costa County Recorder. Book 64 — Page 18 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 e. Approve out -of -state conference attendance not previously budgeted for Chemist I, Chris Doornbos at the Agilent Technologies' Gas Chromatography /Mass Spectrometry Maintenance and Troubleshooting Training in Alpharetta, Georgia, from May 27 -29, 2015, at an approximate cost of $3,118. With respect to Item 3.a., Member Causey pointed out a minor correction to the wording on p. 3 of the February 5, 2015 Board minutes, and Member Williams pointed out a correction to the wording on the same page. It was moved by Member Causey and seconded by Member Williams to adopt the Consent Calendar as recommended, including the requested corrections to the February 5, 2015 minutes. Motion passed by unanimous vote. None. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 5. FINANCIAL PLANNING AND POLICY WORKSHOP, INCLUDING FINAL RESULTS OF COMPREHENSIVE WASTEWATER COST OF SERVICE STUDY a. HOLD FINANCIAL PLANNING AND POLICY WORKSHOP • Summary/Introductory Comments of General Manager • Assumptions - Reserves - Unfunded Actuarial Accrued Liability (UAAL) - Capital Improvement Plan (CIP) Update • Updated Financial Plan Scenarios • Cost of Service Analysis - Proposed Changes • Wastewater Rate Design - Residential Rates - Non - Residential Rates • Recycled Water • Wrap -Up General Manager Roger Bailey briefly reviewed five areas where staff was seeking direction and support from the Board in order to proceed with preparing the Proposition 218 Notice for proposed two -year rate increases and the Fiscal Year (FY) 2015 -16 budgets. The five areas included: 1) fiscal reserves, 2) strategies for addressing the District's UAAL, 3) recommended funding levels for the CIP, 4) acceptance of the Staffing Needs Assessment and approval of the staffing plan for FY 2015 -16, and 5) approval of and authorization to issue the Proposition 218 Notice. Book 64 — Page 19 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 Mr. Bailey recapped the input provided by the Board at the January 20, 2015 Cost of Service Study workshop with regard to developing a fiscal reserve policy, as illustrated in his presentation materials included with the agenda packet. Member Pilecki said the proposed $5 million target level for Emergency Reserves was inadequate, preferring instead that it be raised to $15 or $20 million. Member Causey suggested that the Capital Fund Working Capital Reserves be split into two funds; one for capital expansion, and the other for capital renewal and replacement. Upon discussion, it was the consensus of the Board that staff should proceed with reserve levels as recommended in the presentation materials and revisit some of the issues raised in two years, during the next rate cycle. With regard to the UAAL, it was the consensus of the Board to make additional payments of $2.5 million in each of the next two fiscal years. Finally, Mr. Bailey said staff recommended that the capital program be funded at the level set forth in updated Scenario B included with the agenda materials. Upon discussion, and after a roll call vote, the Board Members unanimously directed staff to finalize the Cost of Service Study consistent with Financial Plan Scenario B for purposes of preparing the Proposition 218 Notice and FY 2015 -16 budgets. Continuing with the Workshop, Sudhir Pardiwala of Raftelis Financial Consultants, Inc. summarized financial planning Scenarios A, B and C which had been updated based on feedback from the Board at the January 20 Workshop. He also presented the preliminary results of the Cost of Service Analysis, introduced a new proposed wastewater rate design for both residential and non - residential ratepayers, and explained that future recycled water rate increases will be subject to Proposition 218 Notice requirements. Mr. Pardiwala stated that Raftelis' analysis of the rate structure indicated that certain classes of ratepayers have been subsidizing others, and it became clear as the study progressed that adjustments need to be made in order to comply with Proposition 218. Raftelis has proposed separating the residential class into two categories - Single Family Residential (SFR) and Multi- Family Residential (MFR). Under the new proposed rate structure, those ratepayers in the MFR category would pay a slightly lower fixed rate than those in the SFR category because the data indicates they have a lower estimated wastewater flow than single - family homes. With non - residential ratepayers, Raftelis proposed removing certain classes of customers from the Standard Commercial class because industry standards indicate that these classes have higher loadings. Those groups most affected by the proposed changes include auto repair facilities, hotels and motels, mortuaries, supermarkets with food service, and intermediate and high schools. A discussion took place during which staff responded to multiple questions from the Board Members regarding potential outreach to those non - residential customers most affected by the proposed classification changes, and the possibility of phasing in the rate increases for those customers. While the Board Members were in agreement with the proposed new rate structure, they differed with respect to whether or not a phased -in approach was necessary or appropriate for certain non- Book 64 — Page 20 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 residential customers. Members Pilecki and Causey favored a phased approach and were interested in receiving information on how such an approach could be structured. b. RECEIVE FINAL ORGANIZATION AND STAFFING PLAN (STAFFING NEEDS ASSESSMENT) PREPARED BY RAFTELIS FINANCIAL CONSULTANTS INC IN CONJUNCTION WITH THE COST OF SERVICE STUDY; AND APPROVE THE STAFFING PLAN FOR FY 2015 -16 INCLUDING THE STAFFING RECOMMENDATIONS AS SUMMARIZED IN THE POSITION PAPER It was moved by Member Causey and seconded by Member Williams to accept the Staffing Needs Assessment and approve the Staffing Plan for FY 2015 -16, including the staffing recommendations as summarized in the position paper. Motion passed by unanimous vote of the Board. 6. ADMINISTRATIVE a. REVIEW DRAFT PROPOSITION 218 NOTICE AND AUTHORIZE THE SECRETARY OF THE DISTRICT TO PROVIDE PUBLIC NOTICE OF PROPOSED SEWER SERVICE CHARGE AND RECYCLED WATER RATE INCREASES FOR FY 2015 -16 AND FY 2016 -17 The Board Members provided comments with respect to the draft Proposition 218 Notice included with the agenda materials. Member Pilecki suggested that the public hearing on June 4, 2015 to consider the rate increases be held at 7:00 p.m. rather than the usual 2:00 p.m. Every Board Member agreed with this suggestion. Subsequently, it was moved by Member Williams and seconded by President McGill to accept the draft Proposition 218 Notice in form and concept, including the minor changes as suggested by the Board, and authorize staff to prepare a final draft consistent with Scenario B of the Cost of Service Study to bring back to the Board for final consideration at the next meeting on March 19, 2015. Motion passed by the following roll call vote of the Board: AYES: Members: McGill, Nejedly, Williams NOES: Members: Causey, Pilecki ABSTAIN: Members: None Member Causey voted against the motion because he believed staff could make the suggested changes to the Proposition 218 Notice without the need for further Board review. Member Pilecki voted no because he believed using the higher amounts in Scenario A would provide staff with more flexibility, as has been done in the past, to be able to adapt to anything that may come to light between now and the June 4 hearing. Book 64 — Page 21 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 7. BUDGET AND FINANCE a. CONSIDER MAKING A CONTRIBUTION AS REQUESTED BY THE WATEREUSE RESEARCH FOUNDATION IN SUPPORT OF ITS RESEARCH IN THE AREA OF DIRECT POTABLE REUSE [Continued from February 5, 2015.] General Manager Roger Bailey introduced the item, after which President McGill noted that the topic had been reviewed by the Real Estate, Environmental & Planning Committee last year. The Committee supported a contribution in concept, although no amount was specified. Member Williams said that after reviewing the rationale for the research, he would be willing to support a one -time $40,000 contribution. Member Nejedly said he would support a $150,000 contribution, payable over three years. Member Causey said he was comfortable with the $40,000 contribution level suggested by Member Williams. Member Pilecki suggested a $75,000 contribution, payable in three $25,000 increments over three years. It was moved by Member Williams and seconded by Member Causey to make a one -time $50,000 contribution to the WateReuse Research Foundation in support of its research in the area of direct potable reuse. Motion failed by the following vote of the Board: AYES: Members: Causey, Williams NOES: Members: McGill, Nejedly, Pilecki ABSTAIN: Members: None It was moved by Member Nejedly and seconded by President McGill to make a $150,000 contribution to the WateReuse Research Foundation in support of its research in the area of direct potable reuse, payable in equal increments over three years. Motion failed by the following vote of the Board: AYES: Members: McGill, Nejedly NOES: Members: Causey, Pilecki, Williams ABSTAIN: Members: None It was moved by Member Pilecki and seconded by Member Causey to make a $75,000 contribution to the WateReuse Research Foundation in support of its research in the area of direct potable reuse, payable in three $25,000 increments over three years. Motion passed by the following vote of the Board: Book 64 — Page 22 a 0 C. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 AYES: Members: Causey, McGill, Nejedly, Pilecki NOES: Members: Williams ABSTAIN: Members: None GENERAL MANAGER ff 2) 8. REPORTS Update on water damage to the District's Information Technology (IT) Data Center Director of Administration David Heath reviewed the presentation material included with the agenda packet and responded to several questions from Board Members regarding when the District's data backup system will be fully redundant. The estimated damages to IT equipment from the recent incident are estimated to be nearly $250,000. General Manager Announcements The following announcements were included in the agenda packet: a) Public bidding for Lafayette Sewer Renovations, Phase 9, District Project 8421 b) Inspection of the District's Source Control Program conducted by Tetra Tech on behalf of San Francisco Bay RWQCB and USEPA to assess compliance with Federal Pretreatment Standards No additional announcements were made at the meeting. COUNSEL FOR THE DISTRICT 1) Written Legal Update District Counsel Kent Alm stated that his written legal update was in the agenda packet. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming meetings of the Administration and Finance Committees on March 9, 2015, at 8:00 a.m. and 3:00 p.m., respectively; the Real Estate, Environmental & Planning Committee on March 10 at 3:00 p.m.; and the Engineering & Operations Committee on March 11 at 3:00 p.m. Book 64 — Page 23 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 d. BOARD MEMBERS None. 1) Board Member reports on recent meetings or conferences for which they received the stipend or for which the District paid their expenses: and future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses. Member Causey Member Causey reported on the February 23 -25, 2015 California Association of Sanitation Agencies (CASA) Legislative Conference, Washington, D.C. Member Nejedly a) Member Nejedly and Member Pilecki reported on the February 23, 2015 Finance Committee meeting. The Board received the report without comment. Member Pilecki Member Pilecki reported on the February 20, 2015 Pleasant Hill State of the City Address. Member Williams b) Member Williams and President McGill reported on the February 19, 2015 Administration Committee meeting. The Board received the report without comment. 2) Board Member 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 or expense reimbursement not specifically addressed in the current Board Compensation Resolution or authorization for conference attendance not previously approved by the Board None. 9. EMERGENCY SITUATIONS REQUIRING BOARD ACTION Book 64 — Page 24 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 5, 2015 10. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Causey suggested that staff prepare an outline of an equipment -based renewal and replacement program. Board President McGill and Members Nejedly and Pilecki felt such an outline was not necessary at this time, particularly given staff's focus on other more pressing matters. 11. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 4:32 p.m. i Michael R. Mc , P.E. 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 64 — Page 25