HomeMy WebLinkAbout07.a. Approve minutes of April 20, 2017 Board meeting 7.a.
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MIAUTr-dBOARD OF DIRECTORS:
PAIL,H CA USEY
President
REGULAR BOARD MEETING � ,
JAS,AL'S A.AL'JEDLY
President Pro Fern
Board Room - MICHAEL R.MCGILL
Th u rsda , ril 2o, 017 TAD J.PILECKI
�`" DAVID R.WILLIMI'S
1.30 p.m.
DRAFT .
Open Session — Board Room
(Video recorded)
1:3D p,.m.
1. ROLL CALL
A regular meetings of the Board.of Directors was called to order by President Ca osey
at 1:30 p.m. secretary of the District Elaine Boehme called roll:
PRESENT: Members: McGill, Nejedly, Pilec i, Williams, Causey
ABSENT: Members: None
2. PLEDGE of ALLEGIANCE
The Board, staff and audience joined In the fledge of Allegiance.
3. PUBLIC COMMENT PERIOD
William Vaughn of Lafayette submitted written comments to the Secretary of the
District regarding a Central San sewer renovation project near his home. He stated
that the timing of the public workshop was too late to raise concerns abort how the
project may affect paving on a private roam adjacent to his property. He requested
the District slurry seal the road to extend the pavement life, but his request was
rejected. He asked the Board to reconsider his request and schedule future public
workshops to allow time for public concerns to be addressed.
Member Nejedly asked for the Board's indulgence in requesting a brief staff report at
a future Board meeting to address the issues raised by lir. Vaughn. Member Pilecki
These summary minutes are supplemented by a corresponding video recording available on the District's
website at centralsan.org.
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20,2017 Board Meeting Minutes-Page 2
asked for the report to include information regarding contacts that Central San
employees have had with property owners ahead of the project.
4. REQUESTS TO CONSIDER MATTERS OUT OF ORDER
None.
5. CONSENT CALENDAR
a. Approve minutes of Board meetings held on the following dates:
1) April 8, 2017 (regular);
2) April 7, 2017 (special —tour of facility).
b. Adopt Resolution No. 2017-010 accepting a grant of irrevocable offer of
dedication for sanitary sewer easements from Discovery Builders, Inc., a
California corporation (ROW Parcel 2), as related to the Evergreen Project,
Minor Subdivision 05-0002, located in North Lafayette; and authorizing staff to
record documents with the Contra costa county Recorder.
C. Adopt Resolution No. 2017-011 accepting offers of dedication for sanitary
sewer easements from Shapell Industries, Inc., and Toll Brothers as related to
the Gale Ranch Phase 4, Road Acceptance 1250, subdivision 9341, 0528,
located in San Ramon; and authorizing staff to record documents with the
Contra Costa County Recorder.
d. Approve a new project in the amount of $200,000 for the Miner Road Sewer
Emergency Repairs in Qrinda, District Project 8439, and authorize the
General Manager to transfer$200,000 from the Self-Insurance Fund to fund
the project. Approval recommended by Engineering & operations
Committee.
General Manager Roger S. Bailey pulled Item 5.d. so that Capital Projects Division
Manager Edgar Lopez Gould provide the Board with updated information.
BOARD ACTION: Motion was made by Member Williams and seconded by
Member Nejedly to adopt the Consent calendar as recommended, except for
Item 5.d. Motion passed by unanimous vote of the Board.
With regard to Item 5.d., Mr. Lopez stated that the City of orinda commenced
repairs on the Miner Road culvert yesterday, but not on the sewer pipes. Staff
recently learned that Central San cannot use the City's contract with Bay Cities to
perform the sewer repair work, as originally envisioned. Therefore, staff is working
to find its own contractor. He noted that this change does not affect the staff-
recommended action as set forth in the agenda materials; his comments simply
were to apprise the Board of the most recent project status.
District Counsel said staff may need to come back to the Board at a future date to
approve award of the contract.
CENTRAL CONTRA COSTA SA N1 TA R Y DIS TRIC T
April 20, 2017 Board Meeting Minutes-Page 3
Member Nefedly expressed frustration at the amount of time it has taken to repair
the broken sewer lines, noting that the sinkhole has disrupted an entire
neighborhood.
BOARD ACTION: Motion was made by Member Nejedly and seconded by
Member McGill to adopt consent calendar Item 5.d. as recommended. Motion
passed by unanimous vote of the Board.
Member Williams requested a staff report on lessons that can be learned from the
Miner Road situation that could be helpful should something similar occur in the
future. The Board Members concurred with this request.
8. PUBLIC HEARINGS
a. Conduct a public hearing to receive comment and consider adopting,
Uncodified ordinance No. 294 establishing a schedule of sewer service
charge (SSC) rates in accordance with District Code Chapter 8.24.030
increasing the annual SSC for residential and non-residential customers for
the next two fiscal years consistent with the chart below:
FY 2017-18 FY 2018-19
Increase Annual SSC Increase Annual SSC
Single Family Residences $35 $838 $38 $578
Multi-Family Residences $34 $521 $37 $558
Effective Date July 1, 2017 July 1, 2018
(Residential rales shown in dollars per residential unit.)
Non-Residential As shown in the Proposition 218 Notice mailed to
property owners.
General Manager Roger Bailey reviewed the presentation included with the
agenda materials. in response to a question from Member Pilecki, he
presented an additional slide reflecting rate scenarios that, among other
variables, included an additional$2.7 million in operations and maintenance
savings.
President Causey opened the public hearing.
Sue Noe Welsh stated her belief that the Board and staff operate the District in
a consistently responsible manner by continuing to pay down pension
retirement debt and figure out ways to reduce expenses while at the same time
ensuring that Central San has the means to implement the Comprehensive
Wastewater Master Plan (CWMP) over the next 20 years. She said she was in
favor of the proposed rate increases.
Mary Bates of Pleasant Hill asked the Board to consider lowering the sewer
service charge for disabled citizens and lower income seniors.
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20, 2017 Board iVleeting Minutes-Page 4
President Causey closed the public hearing.
District Counsel Kent Alm stated that all classes of customers are required to
pay their respective cost of service.
Ms. Boehme stated than on March 6, 2017, a total of 107,755 Proposition 218
notices were mailed. As of the start of the public hearing, a total of 25
protests were received, 19 of which were legally valid (most that were not
legally valid did not contain required signatures).
in response to a question from Member Williams, Mr. Alm confirmed that
Proposition 218 requires that protests be signed. The signatures do not have
to be wet signatures; a copy or emailed PDP will suffice.
Member McGill noted that part of the rationale for maintaining a 7 percent
increase for both years was to avoid rate volatility and reduce the amount of
bonds needed in later years. He noted that while there are interest costs
associated with bonds, future ratepayers who will benefit from the envisioned
long-term capital.improvements will help share in the cost, rather than the
current ratepayers paying it all up front.. He commented that the Board has
given staff direction to avoid rate volatility and asked whether the difference
between 6.5 percent and 7 percent was considered volatile and if staff has a
preference.
Mr. Bailey said either would meet the revenue requirements in the near term.
In reviewing the 10 year Capital Improvement Plan, Member Pilecki
commented that there is uncertainty related to'both gasification (which could
have a $30-$40 million impact on the budget), and the need for digesters
(with a $60 million impact). He opined that staff might know a lot more on
these topics in the next couple of years.
Member Williams noted that over the course of the last year, the Board has
looked at a number of 10-year rate scenarios, with increases ranging from as
low as 6.8 percent to 18-19 percent, the variations being a function of bond
financing versus pay-as-you-go funding. ire said he is a proponent of pay-as-
you-go funding for ongoing maintenance and operations, including routine
pipe replacement, but for capital projects as outlined in the C WMP with a life
of 30-40 years, it does seem generally accepted that bond funding is
appropriate. He said no more funds should be collected than are needed to
run the District in a reasonable, high-quality fashion to comply with all
regulations.
Member Williams moved to approve a 6.5 percent rate increase in each
of the next two fiscal years.
The motion died for lack of a second.
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20,2017 Board Meeting Minutes-Page 5
Member Pilecki►roved to increase rales by 4.8 percent in each of the
next two years based on applying the following sources of funds toward
capital improvements:
(1) $2.5 million annual payments to the unfunded actuarial accrued
liability(UAAL) (on the premise that it will be fully funded in 10
years);
(2) $3.359 million fiscal year-end 2015-16 extra reserve fund balance
currently earmarked for establishing a new Internal Revenue
Code Section 115 Pension Trust; and
(3) Any unspent budgeted funds remaining at the end of the current
fiscal year.
The motion died for lack of a second.
Member Williams pointed out that the pension unfunded liabilities as well as
those associated with the District's Other Post-Employment Benefits (OPEB)
Trust are debts the District currently owes and he could not support a motion
that does not continue paying down those debts.
Mr. Bailey added that any concerns about superfunding would be addressed
by creation of the Section 115 Trust.
President Causey expressed concern that the public may not be able to
withstand the anticipated 18 percent rate increases needed if bonds are not
issued. He supported the staff recommendation of 7.0 percent rate increases
in each of the next two years, with the requirement that a public hearing►be
held before imposing the second-year increase.
Motion was made by Member McGill and seconded by Member Causey
to find that there was not a majority protest as indicated by the receipt
of only 19 legally valid letters in opposition from more than 1009000
property owners, and adopting Uncodified ordinance No. 294 (including
Section 3 requiring the holding of a public hearing before imposing any
second-year increase) establishing a schedule of SSC rates in
accordance with District Code Chapter 6.24.030 increasing the annual
SSC for residential and non-residential customers for each of the next
two fiscal years by 7.0 percent, as specified in the chart above. Motion
failed by following roll call vote of the Board:
AYES: Members: McGill, Causey
NOES: Members: Nejedly, Pilecki, Williams
ABSTAIN: Members: None
Motion was made by Member McGill and seconded by Member Williams
to find that there was not a majority protest as indicated by the receipt
of only 19 legally valid letters in opposition from more than 100,000
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20,2017 Board Meeting Minutes-Page 6
property owners, and adopt Uncodified Ordinance No. 294 (including
Section 3 requiring the holding of a public hearing before imposing any
second-year increase) establishing a schedule of SSC rates in
accordance with District Code Chapter 5.24.030 increasing the annual
SSC for residential and non-residential customers for each of the next
two fiscal years by 8.5 percent. Motion failed by following roll call vote
of the Board:
AYES: Members: McGill, Williams, Causey
NOES: Members: Nejedly, Pilecki
ABSTAIN: Members: None
Member Nejedly said he does not favor the use of bonds, preferring instead
pay-as-you-go methods. Also, he has been troubled by the wildly fluctuating
actuarially calculated►balances for unfunded liabilities over the past years but
is pleased with the efforts the Board has made in reducing► the UAAL. He
believes that too much has been spent on studies in the recent past, monies
that could have been used toward capital improvements. Despite projected
rate increases in the 18-percent range in the future, Member Nejedly said he
refuses to support bonds and believes costs can be cut.
Member McGill pointed out that the trea tment plant was built primarily with
federal and state grants. Those programs are no longer available and it is
incumbent upon the Board to figure out how to pay for maintenance and
improvements.
President Causey said studies and long►-term planning are necessary and
they pay off in the future. He cited central San's new asset management
program as an example.
Member Pilecki proposed a rate increase of 5.5 percent, predicated on
anticipated►budget savings for the current fiscal year. After some discussion,
he made the following motion:
BOARD ACTION: Motion was made by Member Pilecki and seconded by
President Causey to find that there was not a majority protest as
indicated by the receipt of only 19 legally valid letters in opposition from
more than 100,000 property owners, and adopt Uncodified Ordinance
No. 294 (including Section 3 requiring the holding of a public hearing
before imposing any second-year increase) establishing a schedule of
SSC rates in accordance with District Code Chapter 6.24.030 increasing
the annual SSC for residential and non-residential customers by 5.5
percent for Fiscal Year 2017-18 and by 7.0 percent for Fiscal Year 2018-
19. Motion passed by following roll call vote of the Board:
AYES: Members: McGill, Pilecki, Williams, Causey
NOES: Members: Nejedly
ABSTAIN: Members: None
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20, 2017 Board Meeting Minutes-Page 7
Mr. Alm noted that the figures in the proposed ordinance included with the
agenda materials will need to be readjusted to conform with the above action.
He suggested that an informational copy of Uncodified ordinance ilio. 294 be
presented at the next Board meeting for the Board's information. ilio further
Board action is needed.
b. Conduct a public hearing to receive comment and consider adopting
Uncodified Ordinance No. 295 establishing a schedule of recycled water
charges in accordance with District Code Chapter 5.38 increasing the
Recycled Water Charge for recycled water customers by three percent for
each of the next two years consistent with the chart below:
FY 2017-18 FY 2018-19
Service Service
User Group I ncrease Charge Increase Charge
Class I (former potable users) $0.10 $3.58 $0.11 $3.69
Class 11 (former canal/well users) $0.05 $1.71 $0.05 $1.76
Effective Date July 1, 2017 July 1, 2018
(Rales shown in dollars per 1,000 gallons)
Planning and Development Services Division Manager Danea Gemmell
reviewed the presentation included with the agenda materials.
President Gausey opened the public hearing. There being no public
comments, he closed the public hearing.
Ms. Boehme confirmed that there were no protests filed with regard to the
proposed rate increases for the recycled water user groups.
Member Williams recollected casting a dissenting vote at the January 26,
2017 Workshop when the Board authorized staff to prepare a Proposition 218
Notice for recycled water charges consistent with a 3 percent GPI (consumer
price index) increase in each of the next two fiscal years. He said the rate
increases should be increased to cover the actual cost of providing recycled
water to customers. He continues to hold the position that it is inappropriate
for a wastewater agency to subsidize recycled water rates.
President Causey said he was in favor of staff's original recommendation at
the Workshop to move toward bringing the Glass 11 rate closer to the Glass 1
rate, which would be a step toward full cost recovery for the Recycled Water
Program. However, in the interest of moving things along, he said he would
support the proposed 3 percent rate increases provided staff look very closely
at future rates.
BOARD ACTION: Motion was made by Member Pilecki and seconded
by Member Nejedly to find that there was not a majority protest and
adopt Uncodified Ordinance No. 295 establishing a schedule of recycled
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20, 2017 Board Meeting Minutes-Page S
water charges in accordance with District Code Chapter 6.38 increasing
the Recycled Water Charge for Class I (former potable water users) and
Class II (former canal/well users) user groups for the next two fiscal
years as specified in the chart above. Motion passed by following roll
call vote of the Board:
AYES: Members: McGill, Nejedly, Pilecki, Causey
NOES-: Members: Williams
ABSTAIN: Members: None
7. LEGISLATIVE MATTERS
a. Receive update on pending legislative matters and provide direction on
priority legislation.
Communication Services and Intergovernmental Relations Manager Emily
Barnett reviewed the Priority Legislation Tracking Sheet included with the
agenda materials, stating that Board direction was requested with regard to
the position to be taken by Central San on the identified priority legislation.
BOARD ACTION: Motion was made by Member McGill and seconded by
Member Williams to adopt the staff recommendation to support the five
pieces of priority legislation as identified on the Priority Legislation
Tracking Sheet. Motion passed by unanimous vote of the Board.
8. REPORTS AND ANNOUNCEMENTS
a. General Manager
1) Announcements
a) Awards Received at the California Association of Public
Information Officials (CAPIO)
b) General Manager Authorized Contracts, Agreements, Etc. - First
Quarter 2017
c) Request for Interest (RFI) in a public-private partnership (P3) for
development and implementation of a full-scale bioenergy
facility issued and posted on PlanetBid website
d) Sinkhole being repaired at St. Mary's College in Moraga
No further announcements were made at the meeting.
BOARD ACTION: Received the announcements.
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 29, 2017 Board Meeting Minutes-Page 9
Due to time constraints, Items 8.b., 8.c., and the entirety of Item S.d. were postponed
to the next meeting.
b. Counsel for the District
BOARD ACTION: Report postponed to next meeting.
C. Secretary of the District
BOARD ACTION: Report postponed to next meeting.
d. Board Members
1) committee Minutes
a) April 11, 2017 —Administration committee — Member McGill
and Member Williams.
b) April 11, 2017 — Engineering & Operations Committee —
Member Nejedly and President Causey.
BOARD ACTION: Postponed to next meeting.
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.
Member McGill
•
April 6, 2017— Contra Costa County Mayors' conference
hosted by the City of Orinda. Speaker: Larry Sly, Executive
Director of Food Bank of Contra Costa and Solano counties.
• April 17, 2017 —California Special Districts Association — Contra
Costa Chapter Meeting (CCSDA) in Martinez.
■ April_ 18, 2017 — Liaison meeting with Pleasant Hill Mayor and
City Manage..
April 19, 2017 — California Association of Sanitation Agencies
(CASA) Legislative Day in Sacramento.
April 20, 2017 — Industrial Association of Contra costa County
(IACCC) Forum. Speaker: Assembly Member Grayson
regarding state legislative and regulatory issues.
Member Nejedly
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20, 2017 Board Meeting./Minutes-Page 10
Member Pilecki
Member Williams.
President Causgy
BOARD ACTION: Reports postponed to next meeting.
3) Requests for Stigend/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 forconference attendance
not previously approved by the Board.
No requests. .
9. EMERGENCY SITUATIONS
None.
10. REQUESTS FOR FUTURE AGENDA ITEMS
Member Williams reiterated his request from earlier in the meeting for a staff report
on lessons that can be learned from the Miner Road situation in Orinda that could he
helpful should something similar occur in the future. The Board Members concurred
with this request.
11. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7)
District Counsel Kent Alm announced that a closed session would.be held for
Item 13.a.
12. RECESS TO CLOSED SESSION
The Board recessed at 3:52 p.m. to reconvene in closed session in the Third Floor
Informal Conference Room.
Closed Session — Third Floor Informal Conference Room
(Not video recorded)
13. CLOSED SESSION
a. Conference with labor negotiators pursuant to Government Code
Section 54957.5:
District Negotiators:
* I E DA
• Roger S. Bailey, General Manager
• Ann K. Sasaki, Deputy General Manager
CENTRAL CONTRA COSTA SANITARY DISTRICT
April 20,2017"Board Meeting Minutes-Page 11
• Philip R. Leiber, Director of Finance and Administration
• Teji O'Malley, Human Resources Manager
Employee organizations:
• Employees' Association, Public Employees Union, Local one
■ Management Support/Confidential Croup (MS/CG)
! Management Croup
14. RECESS To OPEN SESSION
The ward recessed at 4:50 p.m. to reconvene in open session.
15. REPORT OUT of CLOSED SESSION
None.
16. ADJOURNMENT
The meeting was adjourned at 4:50 p.m.
Paul H. Causey, 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