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HomeMy WebLinkAbout04.a.1) Approve minutes of Board meeting held 5-21-15MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MAY 21, 2015 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 21, 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 None. The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS 3. CONSENT CALENDAR a. Approve minutes of April 23, 2015 Board meeting. b. Approve expenditures dated May 21, 2015. Approval recommended by Finance Committee. C. Set public hearing for June 4, 2015 at 7:00 p.m. to consider: • Adopting an uncodified ordinance to amend the Schedule of Capacity Fees, effective July 1, 2015. • Adopting an uncodified ordinance to amend the Schedule of Environmental and Development Rates and Charges, effective July 1, 2015. d. Approve updated salary schedule for all District job classifications effective May 21, 2015 to meet disclosure requirements of a "publicly available pay schedule" under Public Employees' Pension Reform Act (PEPRA). e. Allow Connection Fee Deferral Program to sunset on June 30, 2015 due to lack of use. Finance Committee recommended letting the Program sunset. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 It was moved by Member Williams and seconded by Member Causey to adopt the Consent Calendar as recommended. Motion passed by unanimous vote. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. REPORTS a. GENERAL MANAGER 1) General Manager Announcements The following announcements were included in the agenda packet: a) Management Leadership Academy completes 2014 -15 Program b) Recap of Drought and Urban Farming Event held May 8, 2015 The following additional written announcements were distributed at the meeting: c) Retention payment received for Concord Landscape Project grant d) Contra Costa Local Area Formation Commission (LAFCO) continues District Annexation (DA) 168 — Magee Ranch (Danville) e) 2015 District population estimate The following additional announcements were made at the meeting: f) Edgar Lopez selected as new Capital Projects Division Manager g) New Environmental & Regulatory Compliance Division Manager scheduled to begin June 24, 2015 h) Final Wastewater Cost of Service Study to be distributed on May 22, 2015 b. COUNSEL FOR THE DISTRICT 1) Announce closed session (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 12.a. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 2) Report on Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano Appellate Decision filed April 20, 2015 — Proposition 218 Decision on Use of Tiered Water Rates Mr. Alm briefly commented on the Appellate Decision contained in the agenda packet during which it was noted that tiered rates are permissible under Proposition 218 as long as their rationale is justified. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme provided a current tally of Proposition 218 protests in advance of the June 4, 2015 public hearing on proposed rate increases. She also announced the following upcoming Committee meetings: Administration — Tuesday, May 26 at 8 a.m. Finance — Tuesday, May 26 at 3 p.m. Real Estate, Environmental & Planning — Wednesday, May 27 at 2:30 p.m. d. BOARD MEMBERS 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 a) Member Causey and Member Nejedly reported on the May 12, 2015 Engineering & Operations Committee meeting. The Board received the report without comment. Member Nejedly b) Member Nejedly and Member Pilecki reported on the May 13, 2015 Finance Committee meeting. The Board received the report without comment. Member Pilecki c) Member Pilecki and President McGill reported on the May 6, 2015 Real Estate, Environmental & Planning Committee meeting. The Board received the report without comment. 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 Member Williams d) Member Williams and President McGill reported on the May 11, 2015 Administration Committee meeting. The Board received the report without comment. President McGill President McGill reported on the May 7, 2015 Contra Costa County Mayors' Conference hosted by the City of Pittsburg featuring supervising naturalist Mike Moran, Big Break Visitor Center at the Delta, East Bay Regional Park District, speaking about Delta Gateways: Heritage and Habitat. President McGill reported on his May 11, 2015 Board Liaison meeting with City of Pleasant Hill officials, Mayor Ken Carlson and City Manager June Catalano. President McGill also reported that he attended the first day of the California Special Districts Association (CSDA) Special Districts Legislative Days in Sacramento on May 19, 2015. 2) Board Member Announcements Member Causey announced that he will be hosting a State of the District Talk in San Ramon on May 27, 2015 from 7:00 -10:30 a.m. as an outreach opportunity covering the San Ramon, Danville and Alamo communities. Member Causey also announced that the Rossmoor community appears to be interested in using recycled water, perhaps by creating a scalping plant. Ms. Boehme announced that she has been in touch with the Chief Executive Officer of Rossmoor's Golden Rain Foundation to set up a meeting with District representatives. Member Pilecki announced that with the increased interest in scalping plants, the District should consider developing a policy. President McGill said he believes staff has begun work in that regard. Member Pilecki also announced that he had attended the Drought and Urban Farming event held May 8, 2015 on the Kiewit property, the site of the CoCo San Sustainable Farm. The event, hosted by AgLantis and the District, was very well attended and provided an opportunity to discuss recycled water and sustainable living. President McGill provided a written report covering his announcements and other meetings. N CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 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. 6. ADMINISTRATIVE a. CONSIDER WHETHER TO CONVERT FROM DETAILED SUMMARY BOARD MINUTES TO ACTION MINUTES SUPPLEMENTED BY INDEXED, VIDEOTAPED RECORDINGS OF BOARD MEETINGS THAT WOULD BE MADE AVAILABLE ON THE DISTRICT'S WEBSITE AND RETAINED PERMANENTLY Ms. Boehme briefly reviewed the information contained in the agenda packet, noting that the expenditure of funds involved with switching to indexed, videotaped meeting recordings was within the General Manager's authority. She said the Administration Committee had reviewed the associated costs and recommended moving to action minutes and videotaping of Board meetings with a single- camera option to expedite the availability of Board minutes. She noted that such a change would address the following goals in the District's Strategic Plan: being an industry leader, providing exceptional customer service, and being transparent. Member Causey said he had experience with this concept with other agencies and has found it very useful. He supported making the change as quickly as possible. Upon viewing the single- camera video demonstration provided by Ms. Boehme during the meeting, Member Pilecki said it was hard to determine who was speaking. He also wondered if it would be difficult to locate specific agenda items on the videotape versus the word - searchable format of the District's current detailed summary minutes. Member Nejedly said he preferred to remain with the present methods. Ms. Boehme noted that a multiple- camera operation, which would allow the camera to zoom in on speakers, and therefore easily identify who is talking, was more expensive because it would require the services of a videographer. She also pointed out that the Board Room is in the process of being rewired so starting with a single- camera operation and transitioning to a multiple- camera operation would be easily facilitated at no additional cost from a wiring standpoint. At the suggestion of President McGill, staff was requested to draft a policy based on direction received from the Board, including a single- camera operation, to be reviewed by the Administration Committee with a view toward making a more formal recommendation to the Board at a future meeting. 7. ENGINEERING 5 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 a. PRESENTATION OF RECENT KTVU -2 VIDEO CLIP ON RESIDENTS USING FREE RECYCLED WATER FROM THE DISTRICT'S RECYCLED WATER FILL STATION TO KEEP LANDSCAPES GREEN Upon conclusion of the video clip, Member Williams commented that while providing a recycled water fill station is admirable, and the users appear to be extremely pleased that it has been made available, in the interest of full disclosure it is also important to recognize the overall potentially detrimental environmental impact of transporting recycled water via personal vehicles, sometimes for many miles. 8. TREATMENT PLANT a. ADOPT RESOLUTION 2015 -013 AUTHORIZING THE GENERAL MANAGER TO ENTER INTO A SOLE - SOURCE SERVICES CONTRACT WITH SOLAR TURBINES, INC. FOR A FIVE -YEAR TERM AT AN ESTIMATED COST OF $1.65 MILLION FOR THE LONG -TERM MAINTENANCE OF THE DISTRICT'S COGENERATION GAS TURBINE SYSTEM PURSUANT TO PUBLIC CONTRACT CODE SECTION 3400(C)(3) AND DISTRICT PURCHASING PROCEDURES MANUAL SECTION 5.3.15; AND MAKE THE FOLLOWING FINDINGS: 1) That the long -term services contract is exempt from California Environmental Quality Act (CEQA): 2) That the public interest is best served by utilizing the unique technology and proprietary knowledge that Solar Turbines, Inc., the original equipment manufacturer, has developed to maintain the Cogeneration Gas Turbine System; and 3) That under the circumstances, Solar Turbines, Inc. is the only qualified supplier to maintain the rebuilt Cogeneration Gas Turbine System equipment and that it is in the best interest of the District to proceed with a sole- source contract with Solar Turbines, Inc. Deputy General Manager Ann Sasaki stated that this matter was reviewed by the Engineering & Operations Committee on May 12, 2015 and the Committee requested that additional information concerning other options be presented to the full Board at this meeting. Such options were presented in the staff report included with the agenda material. She summarized the issue of providing long -term maintenance services for the District's aging cogen system over the next five- to seven -year period while the District undergoes a treatment plant master plan study, which may ultimately lead to utilizing a different technology. She reviewed the cost savings generated when the cogen system is running, maintenance history, and the need for maintaining an acceptable level of service while minimizing risk. She also reviewed steps staff has taken to help mitigate some of the liability issues. F CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 A lengthy discussion took place regarding how many overhauls would be conducted during the term of the contract and at whose discretion, the benefits of Solar Turbines' familiarity with the equipment, and insurability issues. District Counsel Kent Alm said that he had thoroughly reviewed the contract. He also pointed out that while his name is on the Positon Paper included in the agenda materials, and he drafted the second to last paragraph before the Committee Recommendation section. He wished the minutes to reflect that it has been very difficult for him to recommend approval of the contract because it is probably the most unbalanced contract in terms of liability that he has approved during his career. That said, he stated it was important for the Board to understand that the contract contains an absolute liability limitation which includes liability for Solar Turbines' own sole negligence. He noted that at the top of page 4 of the Position Paper there is the statement, "Solar Turbine's total liability, including liability for its own negligence, is limited to the annual fee of $216,720. This limit is cumulative and also applies to any insurance provided." However, since the position paper was drafted, Solar Turbines raised this limit to $750,000. Mr. Alm also commented that the second sentence of the quote is debatable; nevertheless, it is the expressed position of the representatives of Solar Turbines. No matter what happens or the amount of a claim, the District could only recover $750,000 from Solar Turbines, despite the fact it has $10 million worth of insurance. Mr. Alm wished to clarify that if there were a major claim under this contract, he asserted there is a very sound argument that the stated limitation does not apply to the insurance. Nevertheless, that may be Solar Turbines' position in any future dispute. A lengthy discussion took place, during which staff and counsel responded to numerous questions from the Board. Member Causey expressed a preference for the beneficial use option (Alternative 1 on p. 6 of the PowerPoint), because the District would not be prepaying for a second overhaul of the cogen system which may not be necessary during the term of the contract. It was moved by Member Nejedly and seconded by Member Pilecki to accept staffs recommendation to adopt Resolution 2015 -013 authorizing the General Manager to enter into a sole- source contract with Solar Turbines for long -term maintenance of the Cogeneration Gas Turbine System, and make the findings set forth above. Motion passed by the following roll call vote of the Board: AYES: Members: Nejedly, Pilecki, Williams, McGill NOES: Members: Causey ABSTAIN: Members: None 7 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 9. BUDGET AND FINANCE a. RECEIVE FY 2015 -16 OPERATIONS & MAINTENANCE (O &M) AND DEBT SERVICE FUND BUDGETS Director of Administration David Heath reviewed the PowerPoint included with the agenda materials. He noted that the draft budgets were reviewed by the Finance Committee on May 11, 2015. It was moved by Member Causey and seconded by Member Williams to receive the FY 2015 -16 Operations and Maintenance (O &M) and Debt Service Fund Budgets. Motion passed by unanimous vote of the Board. b. RECEIVE FY 2015 -16 CAPITAL IMPROVEMENT BUDGET (CIB) AND 2015 TEN - YEAR CAPITAL IMPROVEMENT PLAN (CIP) None. None. Capital Projects Division Manager Edgar Lopez reviewed the PowerPoint included with the agenda materials. He noted that the draft FY 2015 -16 CIB and 2015 Ten - Year CIP were reviewed by the Engineering & Operations Committee on May 12, 2015. In response to a question from Member Pilecki, Mr. Lopez explained that after reviewing the history of cost overruns on capital projects, program contingencies have been increased from five percent to ten percent for all but the Collection System projects. A flat contingency amount of $900,000 has been budgeted for contingencies in that program for next year. It was moved by Member Causey and seconded by Member Pilecki to receive the FY 2015 -16 CIB and 2015 Ten -Year CIP. Motion passed by unanimous vote of the Board. 10. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 11. SUGGESTIONS FOR FUTURE AGENDA ITEMS 12. CLOSED SESSION The Board recessed at 4:48 p.m. to reconvene in closed session in the Caucus Room regarding the following matter: 0 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of May 21, 2015 a. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.2(6 • 69 La Espiral in Orinda. The Board recessed at 5:26 p.m. to reconvene in the Board Room in open session. No reportable action. 13. REPORT OUT OF CLOSED SESSION 14. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 5:27 p.m. Michael R. McGill, P.E. 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 0