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HomeMy WebLinkAbout06.a.2) Approve minutes of Board Meeting held 02-02-17 6.a.2 Sanitary Disttict Central MINUTES* BOARD OF DIRECTORS: PAUL H.CAUSEY President REGULAR BOARD MEETING JAMES A.NEJEDLY President Pro Fern Board Room MICHAEL R.MCGILL Thursday, February 2, 2017 SAD J.WILLIAMSMI �{ry�� DAVID R. II..� IA 1.30 p.m. DRAFT Open Session --- Board Room (Video recorded) 1. ROLL CALL A regular meeting of the Board of Directors was called to order by President Causey at 1:30 p.m. secretary of the District Elaine Boehme called roll: PRESENT: Members: McGill, NeJedly, Pilecki, Williams, Causey ABSENT: Members: None 2. PLEDGE OF ALLEGIANCE The Board, staff and audience Joined in the Pledge of Allegiance. 3. INTRODUCTIONS a. First-term co-op students. BOARD ACTION: Welcomed the co-op students. 4. PUBLIC COMMENT PERIOD No comments. 5. REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. These summary minutes are supplemented by a corresponding video recording available on the District's website at cen tra lsan.org. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes-Page 2 8. AWARDS AND PRESENTATIONS a. Receive plaque from West County wastewater in recognition of mutual aid offered by Central San in providing temporary bypass flow during a recent force main leak at one of its pumping stations. BOARD ACTION: Field operations Superintendent Steve Sauter from the Collection System operations Division presented the recognition plaque to President Causey. 7. CONSENT CALENDAR a. Approve expenditures dated February 2, 2017. Approval recommended by Finance Committee. b. Receive December 2018 Financial Statements and Investment Reports. Approval recommended by Finance Committee. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Williams to adopt the Consent calendar as recommended. Motion passed by unanimous vote of the Board. 8. OTHER BOARD ACTION ITEMS a. Award a construction contract in the amount of $117,250 to Breneman, Inc., the lowest responsive and responsible bidder for District-Weide Patch Paving; find that the project is exempt from California Environmental Quality Act (CEQA); authorize the General Manager to execute the contract documents subject to submittal requirements; and authorize the General Manager to extend the contract up to a total of five years for the amount of $580,250 (not including Consumer Price Index (CPI) adjustments). Reviewed by Engineering & Operations Committee. [continued from January 26, 2017 meeting.] Capital Projects Division Manager Edgar Lopez reviewed the presentation includes► with the agenda materials. Member Nejedly expressed frustration at the constraints of public policy that prohibit an agency from utilizing a contractor that has performed very admirably over a long period of time, especially when the difference in bid price is so minimal, as in this instance. He said the costs of changing contractors may end up costing ratepayers more in the long run. Member Pilecki agreed with Member Nejedly. Members McGill and Williams were sympathetic with the situation but noted that as a public agency, Central San must follow the rules and obtain bids for capital projects. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting!Minutes-Page 3 District Counsel Kent Alm said it was his recommendation to proceed wi CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes-Page 4 C. For purposes of preparing Proposition 218 Notice, select preferred rate scenario for Sewer Service Charge (Scenario 1.0, 2.0, 2.11 2.1 blue, or another scenario). [continued from January 26, 2017 meeting.] Mr. Bailey said that the Board made good progress at the January 26, 2017 workshop toward determining the broad parameters for a necessary Sewer Service Charge rate adjustment, including a two-year horizon, and the use of debt. He said the discussion at this meeting was to decide the maximum rate adjustments for purposes of preparing the required Proposition 218 Notice,_ which will be brought before the Board at its next meeting for approval. Director of Finance and Administration Phil Leiber reviewed the presentation that was distributed at the meeting setting forth the factors that must be balanced in setting rates: 1) the level of spending needed to fund necessary capital projects;2) the level of debt/bond financing, if any, recognizing the long-term nature of the capital spending and the desire to avoid inter- generational inequiti'es; and 3) the level of rate adjustments and the desire to avoid spikes in any given year. He acknowledged there is no perfect answer toward determining the optimal mix. Planning and Development Services Manager Danea Gemmell presented the rate scenarios discussed at the January 26 workshop (reflecting a combination of pay-as-you-go and bona►financing)plus five additional scenarios (reflecting solely pay-as-you-go)per Board Member request. Member Pilecki said he will be meeting with officials from the City of Concord next week and asked the Board's indulgence to be able to present the new scenarios to them and obtain feedback before proceeding. Ms. Gemmell acknowledged that the new scenarios have not yet been shared with there, but the first two years of Central San's 10-Year Capital Improvement Plan are consistent with Concord's budget. Member McGill said he was inclined to select Scenario 2.0 for purposes of the Proposition 218 Notice (7.6 percent annual increase) but was not prepared to vote for anything larger. President Causey stated that he does not believe the higher rate increases illustrated under the five additional pay-as-you-go scenarios would be supported by ratepayers. He said he is relatively comfortable with Scenario 2.0 for the next two years, but acknowledged the need to clarify several issues for future years related to the City of Concord, including how the City would participate in the costs related to bond financing. Member Williams said he generally favors a pay-as-you-go approach for trunks and sewer mains, but when it comes to large, one-time treatment plant projects and major overhauls needed to keep a plant running, some of which may be driven by regulatory changes, he supports a blend of cash and debt. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes - Page 5 Financing such expenditures solely through rate increases puts the burden on current ratepayers for projects that will benefit ratepayers 20-30 years from now. Such action would amount to an intergenerational transfer, which he does not support. Member Williams said he preferred Scenario 2.1 (7.0 percent annual increase) over Scenario 2.0. Motion was made by Member McGill and seconded by President Causey to select Rate Scenario 2.0 (7.8 percent annual increase) for purposes of preparing the Proposition 218 Notice for the Sewer Service Charge. Motion failed by the following vote of the Board: AYES: Members: McGill, Causey NOES: Members: Nejedly, Pilecki, Williams ABSTAIN: Members: None BOARD ACTION: Motion was made by Member Williams and seconded by President Causey to select Rate Scenario 2.1 (7.0 percent annual increase) for purposes of preparing the Proposition 218 Notice for the Sewer Service Charge. Motion passed by the following roll call vote of the Board: AYES: Members: McGill, Williams, Causey NOES: Members: Nejedly, Pilecki ABSTAIN: Members: None Member McGill requested additional information at a future meeting about the "reduce ODM spending"notation in the description column for Scenario 2.1. d. Adopt approach with respect to vehicle replacement funding. [Continued from January 28, 2017 meeting.] Mr. Bailey stated that at the November 10, 2010 workshop the Board had requested a report on possibly establishing a vehicle replacement fund. A memorandum was included with the agenda materials for the January 26, 2017 workshop which addressed whether Central San's current practice of budgeting annually for fluctuating vehicle replacement needs should be replaced with a vehicle replacement reserve. The matter was deferred to this meeting due to time constraints. Director of Finance and Administration Phil Leiber explained that staff recommends switching to a vehicle replacement reserve for the reasons set forth in the memorandum. Member Nejedly said he saw no need to change from the current practice. Member McGill said he would support the staff-recommended approach but cautioned building up too much of a reserve. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes-Page 0 Member Williams generally agrees► with Member illejedly but said the recommended approach seems reasonable and does not appear to require a lot of extra staff effort. President Causey said he favored the recommended approach with respect to vehicle replacement funding, and suggested that staff look at doing something similar with respect to cyclical equipment maintenance. Mr. Bailey said it would be appropriate for all Board Members to consider President Causey's request under "Suggestions for Future Agenda Items" later In the meeting. Member Pilecki said he was not supportive of the recommended vehicle replacement funding approach because the current practice works well. BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill to adopt the recommended approach to vehicle replacement funding as described in the staff memorandum included with the agenda materials. Motion passed by the following vote of the Board: AYES: Members: McGill, Williams, Causey NOES: Members: Nejedly, Pilecki ABSTAIN: Members: None 9. LEGISLATIVE MATTERS a. Receive update on pending legislative matters. Communication and Intergovernmental Relations Manager Emily Barnett provided an update to the Board on state legislative matters. BOARD ACTION: Received the update. 19. REPORTS AND ANNOUNCEMENTS a. General Manager 1) Reports a) Update on Emergency Management Program. Reviewed by Administration Committee. Risk Administrator Shari Deutsch reviewed the presentation included with the agenda materials. BOARD ACTION: Received the update. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes-Page 7 b) Update on Contra Costa County Employees' Retirement Association's (CCCERA) recent Board actions related to economic and demographic assumptions. Reviewed by Administration Committee. Human Resources Manager Teii O'Malley reviewed the presentation included with the agenda materials. BOARD ACTION: Received the update. 2) Announcements a) Central San Citizens Academy accepting applications -� Spring 2017 session Begins April 4 b) No businesses in Significant Non-Compliance for 2016 c) Update on Central San's energy consumption for December 2016 No further announcements were made at the meeting. BOARD ACTION: Received the announcements. b. Counsel for the District - No report. C. Secretary of the District - No report. d. Board Members 1) Committee Minutes a) January 10, 2017— Engineering & operations Committee -- Member Nejedly and President Causey. b) January 17, 2017 —Administration Committee — Member McGill and Member Williams. c) January 18, 2017 — Finance Committee — Member Nejedly and Member Pilecki. 2) Reports and Announcements - Board Member reports on recent meetings or conferences for which they received the stipend or for which the District paid their expenses. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes -Page 8 Member McGill ■ January 12, 2017 - Contra Costa County Mayors' Conference hosted by the Town of Danville. Presenter: Carla Marinucci, Editor of the Politico California Playbook, reflecting on what the recent elections tell us about California, the Left Coast, and the rest of the nation. ■ January 18, 2017 - Industrial Association of Contra Costa County January Forum in Pleasant Hill. Topic: California's Manufacturing Muscle: Use it or Lose it. ■ January 20, 2017 - California Water Environment Association (CWEA) - San Francisco Bay Section Annual Awards Banquet in concord. • January 23, 2017 - California Special Districts Association (CSDA) - Contra Costa chapter Meeting in Martinez. ■ January 25, 201.7 - Dublin San Ramon Services District Celebration of Water Recycling Plant Improvements in Pleasanton. • January 25, 2017 - Pleasant Hill State of the City Mayor's Breakfast and Board Installation 2017. ■ January 30, 2017 - city of Walnut Creek State of the City Luncheon. Member McGill provided a written report covering his announcements and other meetings. Member Neiedly - No report. Member Pilecki ■ January 20, 2017 - California Water Environment Association (CWEA) - San Francisco Bay Section Annual Awards Banquet in Concord. ■ January 25, 2017 - City of concord - 32nd Annual Mayor's Luncheon. ■ January 30, 2017 - City of concord - Infrastructure and Franchise Committee meeting. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting!Minutes-Page 9 Member Williams • January 12, 2017 - Contra Costa County Mayors' Conference hosted by the Town of Danville. • January 18-20, 2017 - California Association of Sanitation Agencies (CASA) Mid-Year Conference in Palm Springs. President Causes • January 12, 2017 - Contra Costa County Mayors' Conference hosted by the Town of Danville. • January 31, 2017 - Lamorinda Liaison Event introducing new Councilmembers from Lafayette, Orinda and Moraga to agencies that provide municipal services to their citizens. BOARD ACTION: Received the reports and announcements. 3) Requests for Stipend/Reimbursement or Conference Attendance — 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. 11. EMERGENCY SITUATIONS Mr. Barley reported on the recent situation on Miner Road in orinda where a sinkhole had developed after severe storms, leading to an urgent need for road repairs. He said an announcement was made at yesterday's Administration Committee that an emergency item may need to be added at this meeting to authorize emergency road repairs. However, he said staff has since come up with an alternate solution and will keep the Board informed as the situation develops. 12. REQUESTS FOR FUTURE AGENDA ITEMS The Board Members were asked if they concurred with President Causey's suggestion made under!tern 8.d. that staff look into developing an approach to cyclical equipment maintenance similar to that adopted earlier in the meeting for vehicle replacement funding. A majority of the Board Members preferred not to proceed in that regard. CENTRAL CONTRA COSTA SANITARY DISTRICT February 2, 2017 Board Meeting Minutes-Page 10 13. ADJOURNMENT The meeting was adjourned at 4:00 p.m. Paul H. Causey 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