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HomeMy WebLinkAbout05.a. Approve minutes of 3-17-16 meeting .57a, Central Contra Costa Sanitary District MINUTES* BOARD OF DIRECTORS: TAD J.PILECKI President Special Board Meeting SEY Thursday, March 17, 2016 P siden Pro Tem President Pro Tem MICHAEL R.MCGILL DRAFTJAMES A.NEJEDLY DAVID R.WILLIAMS Closed Session - Caucus Room 1 :00 1. ROLL CALL — Closed Session (not video recorded) A special meeting of the Board of Directors was called to order by President Pilecki at 1:00 p.m. in the Caucus Room. PRESENT.• Members: Causey, McGill, Nejedly, Williams, Pilecki ABSENT. Members None 2. PUBLIC COMMENTS None. 3. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 4.a. 4. CLOSED SESSION a. Conference with Legal Counsel - Existing Litigation - pursuant to Government Code Section 54956.9(d)(1): • 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. • Public Employees Union, Local No. 1, et al. v. Contra Costa County Employees' Retirement Association, et al., Contra Costa County Superior Court Case No. MSN14-1221. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes- Page 2 5. RECESS TO OPEN SESSION The Board recessed at 1:47 p.m. to reconvene in open session in the Board Room. Open Session - Board Room 6. ROLL CALL — Open Session At 1:48 p.m., Secreltary of the District Elaine Boehme called roll for thei open session: PRESENT.- Members: Causey, McGill, Nejedly, Williams, Pilecki ABSENT.• Members: None a. Pledge of Allegiance to the Flag The Board, staff and audience joined in the Pledge of Allegiance. 7. REPORT OUT OF CLOSED SESSION With regard to Closed Session Item 4.a., Mr. Alm reported there was no reportable action. 8. PUBLIC COMMENTS None. 9. CONSENT CALENDAR a. Approve minutes of March 3, 2016 Board meeting. b. Confirm publication of summary of codified District Ordinance No. 289, revising District Code Chapters 6.24.060 and 6.24.070. C. Award a construction contract in the amount of $2,148,000 to K. J. Woods Construction, Inc., the lowest responsive and responsible bidder for the Lafayette Sewer Renovations, Phase 10, District Project 8426; 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. Approval recommended by Engineering & Operations Committee. d. Award a construction contract in the amount of $1,967,491 to Pacific Trenchless, the lowest responsive and responsible bidder for the North Orinda Sewer Renovations, Phase 6, District Project 8423; find that the CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes- Page 3 project is exempt from CEQA; and authorize the General Manager to execute the contract documents subject to submittal requirements. Approval recommended by Engineering & Operations Committee. e. Authorize the General Manager to execute an amendment to an existing professional services agreement with RMC Water and Environment to increase the contract ceiling by $75,000 (from $95,000 to $170,000) to pursue further development of projects identified in the Wholesale Recycled Water Opportunities Study. Approval recommended by Real Estate, Environmental & Planning Committee. f. Adopt the following new Board Policies (BP); approval recommended by Administration Committee: 1) BP 019 — Recycled Water, and 2) BP 024 — Safe and Healthy Work Environment. Member Causey asked to pull Item 4.f. BOARD ACTION: Motion was made by Member Causey and seconded by Member Nejedly to adopt Consent Calendar Items 4.a. through 4.e. Motion passed by unanimous vote of the Board. [5-0] Member Causey said he had no comment with respect to proposed BP 019 - Recycled Water, but said the proposed policy for a Safe and Healthy Work Environment contained language relating to safety, but none specifically related to health. Either the title should be changed to remove "and Healthy,"or the policy language should be augmented. Member Williams, Chair of the Administration Committee which reviewed the draft policy, suggested taking it back to the Committee for another look given the fact that the District has wellness programs as well as a number of safety training programs that include elements of wellness and ergonomics. BOARD ACTION: It was the consensus of the Board that Item 4.f.2) be sent back to the Administration Committee for further review. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to adopt Consent Calendar Item 4.f.1). Motion passed by unanimous vote of the Board. [5-0] 10. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER Item 12 was taken out of order, prior to Item 11. CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes - Page 4 11. PUBLIC HEARING a. Hold public hearing to conduct annual public review of Board Member compensation and benefits. Reviewed by Administration Committee. The public hearing took place at 2:03 p.m. The public hearing was opened and closed without comment. Member Causey noted that the current stipend is below the mid-range compared with other agencies. Even so, he said he would consider lowering it. He also suggested eliminating mileage reimbursement for Board Members on the belief that it is de minimis, an administrative burden, and should be considered part of the stipend. Member Williams noted that the qualifications to sit on the District's Board are essentially the same as for cities; therefore Board compensation should mirror that of elected officials in the cities in the District's service area. Based on the survey material in the agenda packet, the current stipend appears appropriate and he was not in favor of increasing it. Unlike stipends, which he considered recognition of time provided by Board Members, he considers mileage reimbursement as a simple out-of-pocket cost reimbursement with minimal administrative burden, and he was not in favor of its elimination. Member McGill moved to leave Board Member compensation and benefits unchanged. Member Nejedly seconded the motion. He noted that the Board stipend was reduced several years ago from $221 to its current$185. He said Board Members should be reasonably compensated to enable those who may not be able to afford the substantial time it takes to prepare for and attend District meetings. With regard to mileage reimbursement, he said he has never collected it from the District and believes it should be built into the stipend to alleviate any administrative burden. Member Causey asked if Member McGill's motion could be amended to absorb the mileage reimbursement as part of the $185 stipend. Member McGill said his motion was to maintain the status quo. Upon motion duly made and seconded, the Board voted on Member McGill's motion, seconded by Member Nejedly, to leave Board Member compensation and benefits unchanged. Motion failed by the following roll call vote of the Board: AYES: Members: McGill, Nejedly NOES: Members: Causey, Pilecki, Williams ABSTAIN. Members: None CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes-Page 5 Member Causey moved to reduce the stipend to $175, and eliminate mileage reimbursement. The motion failed for lack of a second. BOARD ACTION: Motion was made by Member Williams and seconded by Member Causey to leave the stipend at $185, which amount would also cover mileage reimbursement except as related to conferences (reimbursement for which is governed by BP 008 - Travel and Expense Reimbursement Policy), effective immediately. Motion passed by the following roll call vote of the Board: AYES: Members: Causey, Pilecki, Williams NOES: Members: McGill, Nojedly ABSTAIN: Members: None 12. REPORTS a. General Manager 1) General Manager Announcements a) Employees to attend California Water Environment Association Annual Conference in Santa Clara, CA, from April 26-29, 2016. b) District sends letters in support of reinstating Clean Water State Revolving Fund (CWSRF) Monies No further announcements were made at the meeting. BOARD ACTION: Received the announcements. b. Counsel for the District 1) Written Legal Update. Mr. Alm said he was pleased to report that the California Supreme Court ruled earlier in the day in favor of the City of Los Angeles, holding that accidental or inadvertent release of privileged documents in response to Public Records Act requests does not waive the privilege. BOARD ACTION: Received the update. C. Secretary of the District Secretary of the District Elaine Boehme announced the following upcoming Committee meetings: CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes-Page 6 Administration —Monday, March 28 at 8:30 a.m. Finance — Monday, March 28 at 3:00 p.m. Ms. Boehme also announced Fair Political Practices Commission (FPPC) Form 700s are due by month end. 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 fob which they will receive the stipend or for which the District will pay their expenses. Member Nejedly — No report. Member Causey a) March 8, 2016 — Engineering & Operations Committee meeting - Member Causey and President Pilecki. Member Causey said he attended a Water Task Force meeting earlier in the week and learned that East Bay Municipal Utility District (EBMUD) and Contra Costa Water District (CCWD) have entered into an agreement for the wheeling of water between the two agencies related exclusively to the Freeport water, which might ultimately serve as a model for Central San. He said he also learned about a bill (SB 919) introduced by Senator Robert M. Hertzberg targeted toward water suppliers which seeks to have the California Public Utilities Commission establish more favorable daytime energy rates to encourage more energy use during those hours, and less during the evening hours, when energy demand is generally higher. Member McGill • March 3, 2016 - Contra Costa County Mayors Conference hosted by the City of Lafayette. b) March 8, 2016 — Real Estate, Environmental & Planning Committee meeting — Member McGill and Member Nejedly. • March 10, 2016 — State of the East Bay Luncheon hosted by the East Bay Leadership Council and Contra Costa Association of Realtors in San Ramon. CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes- Page 7 • March 13-15, 2016 —WateReuse California Annual Conference in Santa Rosa. Member Williams c) March 10,2016 — Administration Committee meeting — Member Williams and Member McGill. President Pilecki • March 3, 2016 — Contra Costa County Mayors Conference hosted by the City of Lafayette. BOARD ACTION: Received the reports. 2) Board Member Announcements Member McGill provided a written report covering his announcements and other meetings. BOARD ACTION: Received the announcements. 3) Board Member requests for 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. No requests. 13. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. 14. SUGGESTIONS FOR FUTURE AGENDA ITEMS None. The Board recessed at 2:16 p.m., and reconvened at 2:25 p.m. in the Multi-Purpose Room for the Budget Planning Workshop. 15. BUDGET PLANNING WORKSHOP (not video recorded) a. Hold Budget Planning Workshop. CENTRAL CONTRA COSTA SANITARY DISTRICT March 17,2016 Special Board Meeting Minutes-Page 8 General Manager Roger Bailey presented an overview of the items to be covered during the workshop, including summaries of current year revenues and expenses, projected fiscal year-end reserve balances, budget format changes (including a new line item for the Recycled Water Program), a review of unfunded liabilities for both the Other Post-Employment Benefits(OPEB) Trust and Contra Costa County Employees'Retirement Association (CCCERA)pension, the staffing plan for next fiscal year, overtime trending for the past several years, and planning for signature events. Finance Manager Thea Vassallo stated there could be as much as $2.8 million favorable variance between projected revenues and expenses at the end of this fiscal year. In looking ahead to next year's budget, she said both the Operations and Maintenance and Capital Improvement Budgets will be combined into a single document. The Recycled Water Program will be broken out as a separate line item and she illustrated how that would appear in the new budget document. Member Causey suggested that a separate Recycled Water fund would be more desirable than showing it as a separate department in the budget. Upon discussion, all Board Members except Member Causey agreed that staff should proceed as planned with a separate department for the Recycled Water Program for Fiscal Year(FY)2016-17 budget and revisit the merits of setting up a separate fund in sufficient time for consideration during the FY 2017-18 budget preparation cycle. Capital Projects Division Manager Edgar Lopez summarized the budget format changes for the Capital Improvement Program and responded to questions from Board Members. Ms. Vassallo explained that a new Vehicle Replacement Reserve will be considered and incorporated in future budgets as a sinking fund for vehicle replacement. John Bartel of Bartel Associates, LLC, addressed the unfunded liabilities for both CCCERA and OPEB. He noted that the estimated$88 million CCCERA unfunded actuarial accrued liability(UAAL) as of December 31, 2015 has an 18-year amortization period and is currently projected to be fully funded in 10 or 11 years. The OPEB unfunded liability is approximately$70 million with a 30-year amortization period and is projected to be fully funded in about 22 years. He presented various options for paying down these obligations, including pension obligation bonds, borrowing from District reserves, shortening amortization periods and making one-time payments. He also discussed how the creation of an Internal Service Fund or Irrevocable Supplemental(§115) Trust might be utilized to stabilize contribution rates. Member Nejedly left the meeting at 4;18 p.m. CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes - Page 9 Mr. Bartel said his advice would be, in order of priority, to consider paying down the OPEB unfunded liability, creating a supplemental trust, and paying additional monies toward the CCCERA URAL. Any one of these courses of action, or any combination thereof, deserves consideration in his opinion. He also mentioned that inter-generational responsibilities (the burden being placed on future generations by not addressing unfunded liabilities sooner rather than later) are a very important aspect of this discussion. Mr. Bartel said that from a policy standpoint, he would encourage the Board to consider how it wishes to apportion the budgeted$2.5 million additional payment currentlyslated for CCCERA in FY2016-17, as well as any budget surplus monies that may be available at the end of the current fiscal year. Mr. Bailey said staff will develop ways to optimize the budgeted$2.5 million contribution based on Mr. Bartel's input for discussion at a future meeting. Human Resources Manager Teji O'Malley reviewed the proposed staffing plan for FY 2016-17 as well as overtime trending for the past several years. Communication Services and Intergovernmental Relations Manager Emily Barnett reviewed the slide included with the agenda materials presenting options for commemorating the District's upcoming 70th Anniversary, which also engendered a discussion on signature events in general. She handed out information on the costs of the District's 50th and 60th Anniversary events as well as a debriefing from Union Sanitary District of an open house held last year. Upon discussion, Mr. Bailey said it appeared there was interest among the Board Members present to plan a 70th Anniversary event in line with Option 2, with a view toward making it cost neutral. The Board Members thanked staff and Mr. Bartel for the informative workshop, noting that the information presented was very helpful in preparing for the upcoming budget cycle. 16. ADJOURNMENT The meeting was adjourned at 5:35 p.m. Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California CENTRAL CONTRA COSTA SANITARY DISTRICT March 17, 2016 Special Board Meeting Minutes-Page 10 COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California