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HomeMy WebLinkAbout06.a.2) Approve minutes of Regular Meeting held August 6, 2015MINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON AUGUST 6, 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, August 6, 2015. President McGill called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, Pilecki, Williams, McGill ABSENT: Members: Nejedly a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported on the closed session held during the special Board meeting held immediately prior to this regular meeting: With regard to Item 3.a., direction was provided to District Labor Counsel Dan Clinton and staff. Item 3.b. was continued to the conclusion of the regular Board meeting. b. INTRODUCTIONS The Board welcomed the following new employees: • Tanya Erck, Administrative Technician in the Operations Department - Collection System Operations Division, effective July 20, 2015. • Joseph Stone, Utility Worker in the Operations Department - Plant Maintenance Division, effective July 20, 2015. • Keith Gellerman, Staff Engineer in the Engineering and Technical Services Department — Capital Projects Division, effective July 30, 2015. CENTRAL CONTRA COSTA SANITARY DISTRICT Regular Board Minutes of August 6, 2015 2. PUBLIC COMMENTS Mike Davis, Business Agent for Employees' Association, Public Employees Union, Local One, and David Rolley, Accounting Technician III, commented on an employee who was recently terminated on her last day of probation, allegedly without warning. Mr. Davis said the previous person in the same position was also terminated, although earlier in her probationary period, allegedly also without coaching or constructive guidance. He said such actions diminish trust between the Board and employees and waste ratepayer dollars. He requested that the Board demand accountability from its managers and direct them to treat employees with more respect. Mr. Rolley opined that District management has not been respecting or recognizing Local One as a partner. He stated that management often does not respond to questions, and promises to engage with the union before taking action, but often takes action first and then apologizes afterward. For these reasons, he said he has suspended Local One's participation in the District's Labor Management Committee until management can demonstrate flexibility and a willingness to work with Local One. Robin Anderson, a teacher and property owner from Orinda, asked for financial relief with regard to connecting her property to the sewer service. Her septic system is failing and she is unable to afford the projected costs associated with the connection. She distributed a letter to the Board in support of her comments. 3. CONSENT CALENDAR a. Approve minutes of July 23, 2015 Board meeting. b. Approve expenditures dated August 6, 2015. Approval recommended by Finance Committee. C. Receive June 2015 Financial Statements and Investment Reports. Approval recommended by Finance Committee. d. Authorize public notice for Appropriations Limit. e. Confirm publication of summaries of uncodified District Ordinance Nos. 285, 286, 287 and 288. f. Adopt Resolution Nos. 2015 -018 through 2015 -025 recognizing 2015 Service Award recipients. g. Adopt Resolution No. 2015 -026 accepting a grant of easement related to the North Orinda Sewer Renovation Project (Phase 5), District Project 8411, from Gareth D. Creasey and Melissa L. Creasey, Trustees of the Creasey Family Trust, owner of the property located at 19 Estates Drive in Orinda (APN 269- 021 -001); and authorizing staff to record the document with the Contra Costa County Recorder. 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Regular Board Minutes of August 6, 2015 h. Adopt Resolution No. 2015 -027 rescinding Resolution No. 2008 -111 and providing for concurrent annual performance evaluations of the Executive Management Team (General Manager, Secretary of the District, and District Counsel). Direct staff to secure the services of an arbitrator in accordance with the District's grievance procedure. It was moved by Member Williams and seconded by Member Causey to adopt the Consent Calendar. Motion passed by unanimous vote of the Board Members present. None. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER 5. PUBLIC HEARINGS a. CONDUCT PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION NO. 2015 -028 TO PLACE DELINQUENT CHARGES IN THE AMOUNT OF $114,970.47 FOR THE PROPERTY LOCATED AT 2500 ANNALISA DRIVE IN CONCORD (APN 159 - 362 -001) (CAFFE CLASSICO) ON THE FISCAL YEAR 2015 -16 CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION This matter was reviewed by the Finance Committee on July 27, 2015. Planning and Development Services Division Manager Danea Gemmell reviewed the PowerPoint distributed prior to the Board meeting. She explained that in 2000, Mr. Tom Heffernan was the property owner and operator of Caffe Classico, a gelato and sorbet manufacturer. As a result of enforcement actions taken by the District's Source Control group for discharge violations, Caffe Classico went to Zero Discharge in February 2013. However, no capacity fees have ever been paid for the creation of the business and the manner of their calculation, plus interest and penalties, remains at issue. In approximately 2007, the business was sold and subsequently operated by a group of investors, but Mr. Heffernan remained owner of the property. Staff has been attempting to collect capacity fees since 2012 and the account was declared delinquent in early 2013. Interest and penalties were suspended in May 2013 at the request of Mr. Heffernan pending the outcome of a legal proceeding between the group and Mr. Heffernan. Last year, the District was informed that the arbitration had concluded but the terms were confidential. Since that time, staff and District Counsel have been in contact with Mr. Heffernan about payment of the capacity fees, with no resolution. Ms. Gemmell and District Counsel Kent Alm responded to questions from Board Members during which it was clarified that the amount of capacity fees requested to be placed on the tax roll at this time ($114,970.47) represents an exact calculation of fees from 2012 to 2013, including penalties and interest, and is the down payment, 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Regular Board Minutes of August 6, 2015 based on square footage, for a capacity use agreement. The remaining balance, which represents the burden placed on the sewer system by Caffe Classico prior to 2012, is estimated to be a much larger amount. That amount is more difficult to calculate and further discussion with counsel in closed session is scheduled for August 26, 2015. In the meantime, the County deadline for submitting items for collection on the Fiscal Year 2015 -16 tax roll is August 10, 2015. Mr. Alm noted that if the Board decided to take some other course of action on August 26, the resolution could be rescinded. It was staff's recommendation that the amount of $114,970.47 be authorized via resolution at this meeting for collection on the tax roll. President McGill opened the public hearing. Mr. Heffernan stated his belief that the strength data the District is using to calculate capacity fees is inaccurate. If he could provide some of the information presented during the arbitration hearing, he believes the matter could be resolved. Unfortunately, under terms of the arbitration agreement, that information is confidential. A lengthy discussion took place during which the possibility of obtaining some of the confidential documents for closed session review was raised. Member Causey and Member Williams said they would like to know the actual fees accrued, including interest and penalties, had the District not suspended its efforts to collect in May 2013. Member Pilecki requested information as to the cost of staff time devoted to this matter. Member Williams also said he would like to know what is staff's understanding of any purported agreement reached with Mr. Heffernan with regard to the capacity fees for Caffe Classico. President McGill closed the public hearing. It was moved by Member Causey and seconded by Member Williams to adopt Resolution No. 2015 -028 to place delinquent charges in the amount of $114,970.47 for the property located at 2500 Annalisa Drive in Concord (APN 159- 362 -001) ( Caffe Classico) on the Fiscal Year 2015 -16 Contra Costa County tax roll for collection. Member Pilecki commented that the Finance Committee wanted to put a much larger amount on the tax roll but, given the impending County deadline and the fact that the Board will soon discuss the matter in more depth in closed session when all five Board Members are expected to be present, he said he would vote in favor of the motion. Motion passed by unanimous vote of the Board Members present. 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Regular Board Minutes of August 6, 2015 6. REPORTS a. GENERAL MANAGER 1) Update on Succession Planning Committee Associate Engineer Rita Cheng, Chair of the District's Succession Planning Committee, reviewed the PowerPoint contained in the agenda packet indicating the progress of the Committee's efforts since its formation in 2014. The Committee was formed with a mission to establish a formal succession plan to address future retirements and sudden changes related to staffing. She noted that this item had been reviewed by the Administration Committee on July 6, 2015. 2) General Manager Announcements The following announcements were included in the agenda packet: a) Public bidding for Caustic Soda Injection System, District Project 7297 b) Staff to Attend Water Environment Federation Technical Exhibition and Conference (WEFTEC) in Chicago, Illinois — September 26 -30, 2015 General Manager Roger Bailey announced that Dan Frost, the newly appointed Senior Engineering in Planning and Applied Research, will be filling the spot for the un -named attendee referenced in the announcement. c) Laboratory Chiller Failure on July 28, 2015 d) Update on Residential Recycled Water Fill Station No additional announcements were made at the meeting. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced that a closed session was not needed for Item 9.a., but one would be held for Item 9.b. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the following upcoming Committee meetings: Administration — Monday, August 10 at 8 a.m. Finance — Monday, August 10 at 3 p.m. Real Estate, Environmental & Planning — Tuesday, August 11 at 3:00 p.m. F CENTRAL CONTRA COSTA SANITARY DISTRICT Regular Board Minutes of August 6, 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 that he will be on vacation next week. Member Pilecki a) Member Pilecki reported on the July 27, 2015 Finance Committee meeting which was also attended by Member Nejedly. The Board received the report without comment. Member Williams Member Williams reported on the July 23 meeting he, President McGill and General Manager Roger Bailey had with Assemblywoman Catharine Baker regarding recycled water. He announced that he wished to decline the stipend for the above meeting as he was not originally scheduled to attend. President McGill President McGill reported on the July 24, 2015 presentation he gave on recycled water to the Economic Development Committee of the Walnut Creek Chamber of Commerce, which was also attended by Assemblywoman Baker. 2) Board Member Announcements President 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. 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION F CENTRAL CONTRA COSTA SANITARY DISTRICT Regular Board Minutes of August 6, 2015 8. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member Causey requested an update on the truck fill station on the Kiewit property and whether residents will be able to use it. 9. CLOSED SESSION The Board recessed at 3:39 p.m. to reconvene in closed session in the Caucus Room regarding the following matters: a. PERSONNEL MATTERS PURSUANT TO GOVERNMENT CODE SECTION 54957: PUBLIC EMPLOYEE DISCIPLINE /DISMISSAL /RELEASE b. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(W • One potential case — contractor claims on Lafayette Sewer Renovations, Phase 8, District Project 8404 The Board recessed at 4:54 p.m. to reconvene in the Board Room in open session. 10. REPORT OUT OF CLOSED SESSION No closed session was held with respect to Item 9.a. With respect to Item 9.b., direction was given to District Counsel. 11. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 4:55 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 7