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HomeMy WebLinkAboutBOARD MINUTES 05-18-17 i nt� C ow entral Coa os a a r aDistri ct Protectingpublic health and the environment 5019 Imhoff Place,Martinez, CA 94553-4392 MINUTES* BOARD OF DIRECTORS: PAUL H CA USEY Prevident REGULAR BOARD MEETING JAMESA NEJEDLY President Pro Tern Board Room MICHAEL R MCGILL Thursday, May 18 2017 TAD J PILECKI v , DAVID R WILLIAMS 1:30 p.m. 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 1:34 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. INTRODUCTIONS • Chris Maze, Maintenance Crew Member I in the Collection System Operations Department, Operations Division, effective May 8, 2017. BOARD ACTION: Welcomed Mr. Maze. 4. PUBLIC COMMENT PERIOD No comments. . 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 centra lsan.org. Book 65— Page 196 CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes—Book 65-Page 197 0. AWARDS AND PRESENTATIONS a. Presentation by Ed O'Brien, President of California Water Environment Association (CWEA) San Francisco Bay Section, of the following CWEA State-level awards given to Central San at the April 28, 2017 CWEA Conference: First Place: - Plant of the Year (Large) - Film Festival Training Video of the Year— Semi Professional (Aeration Turbine Startup training video) - Safety Program of the Year - Film Festival Training Video of the Year—Amateur (DAF Thickener Shutdown Procedure training video) - Photo of the Year (wet weather pump pipe replacement) - Gadgets and Gizmos of the Year Second Place: - Film Festival, Public Education — Semi Professional (Maintaining the Flow video) Third Place: Community Engagement & Outreach Project of the Year (70t" Anniversary Community open House) - Collection System of the Year (Large) BOARD ACTION: Mr. O'Brien presented the awards to President Causey. b. Presentation of the 2017 Award of distinction-Excellence in Communications from the California Association of Public Information Officials (CAPIO) for the District's Lateral Connection employee newsletter. BOARD ACTION: Communications and Intergovernmental Relations Manager Emily Barnett will present the award to President Causey. C. View new Central San public service video re overflow protection devices (OPDs) named "OPD Superhero." BOARD ACTION: Viewed the video. d. Acknowledge efforts of IT staff in responding to April 21, 2017 server outage. BOARD ACTION: President Causey acknowledged the IT staff contributions. CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes—Book 65-Page 198 7. CONSENT CALENDAR a. Approve minutes of Board meetings held on the following dates: 1) May 4, 2017 (Regular); and 2) May 9, 2017 (Special — Central San Academy Graduation). b. Award a construction contract in the amount of$555,000 to D. W. Nicholson Corporation, the lowest responsive and responsible bidder for the Treatment Plant Energy— Cogeneration Unit Optimization, District Project 7320; 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 include up to 10 percent contingency; and authorize the General Manager to amend an existing agreement with Carollo Engineers (Agreement 044520) increasing the cost ceiling from $120,000 to $210,000 to provide as-needed construction support services for the project. Approval recommended by Engineering & Operations Committee. C. Grant bid relief to Bay Pacific Pipelines Inc. for construction of the Martinez Sewer Renovations, Phase 5, District Project 8437 and direct staff to return their bid bond; award a construction contract in the amount of$3,018,040 to K. J. Woods Construction, Inc., the next lowest responsive and responsible bidder for the project; find that the project is exempt from CEQA; and authorize the General Manager to execute the contract documents subject to submittal requirements and include up to 10 percent contingency. Approval recommended by Engineering & Operations Committee. d. Adopt Resolution Nos. 2017--14 throu h 2017--016 accepting grants of easement from Rose Rangel TRE, The Shirk Living Trust, and Stephen A. Hamill, TRE, et al. related to the Martinez Sewer Renovation Project, Phase 5, District Project 8437; adopt Resolution No. 2017-017 authorizing the execution of a quitclaim deed-easement to Stephan A. Hamill, TRE, et al.; and authorize staff to record documents with the Contra Costa County Recorder. e. Rescind prior award to Breneman, Inc. for District-Wide Patch Paving and authorize release of the bid security provided by Breneman; award a contract in the amount of$1'19,601 to Morgan-Bonanno Development, Inc., the second lowest responsive and responsible bidder for District-Wide Patch Paving; 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$598,005 not including Consumer Price Index (CPI) adjustments. Approval recommended by Engineering & Operations Committee. f. Authorize the General Manager to enter into a professional services agreement with Michael Willis Architects (MWA Architects) in an amount not to exceed $400,000 for architectural services for public facilities and security CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes—Book 65-Page 199 improvements at the Martinez campus, including relocation of the server room. Approval recommended by Engineering & Operations Committee. g. Authorize the General Manager to agree to purchase natural gas through an existing service agreement with Shell Energy North America, LP, for the period January 1, 2019 through December 31, 2019 up to 1,000 decatherms per day at a price not to exceed $4.25 per decatherm, not including transportation service costs. Approval recommended by Engineering & Operations committee. h. Approve updated salary schedule for all Central San job classifications effective April 18, 2017 to meet disclosure requirements of a "publicly available pay schedule" under Public Employees' Pension Reform Act (PEPRA). Member Pilecki pulled Items 7.b. and 7.c. for discussion and President Causey pulled item 7.f President Causey also requested that Item 7.c. be heard together with Item 8.a. BOARD ACTION: Motion was made by Member Williams and seconded by Member Nejedly to adopt the Consent calendar as recommended, except for Items 7.b., c. and f. Motion passed by unanimous vote of the Board. With regard to Items 7.b. and 7.c., Member Pilecki pointed out that the method of calculating construction costs appears to have been changed on both these projects from that historically used. He said he prefers the old method for consistency of data tracking. Member Williams concurred. General Manager Roger S. Bailey explained that the new method enables one to more clearly distinguish the hard costs from the soft costs of a project and noted that the change had no bearing on the policy issues before the Board at this meeting. 1-laving said that, he said staff will change back to the previous system for future projects. BOARD ACTION: Motion was made by Member Williams and seconded by Member Nejedly to adopt Item 7.b. as recommended. Motion passed by unanimous vote of the Board. with regard to item 7.f., President Causey stated that the Engineering & operations Committee made note that only one of the projects covered under the proposed agreement (server room relocation) for architectural services has been approved by the Board as it is part of the Fiscal Year 2018-17 Capital Improvement Budget (CIB); the remaining projects have not been approved since they are part of the upcoming CIB. He said approval of the agreement should be contingent upon Board approval of the remaining projects. District Counsel Kent Alm said the scope of work in the agreement could set forth such a contingency. He also noted that in the case of multiyear contracts, they can CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes---Book 65-Page Zoo be contingent upon subsequent years'budget approval, although the District has never included such contingencies in past agreements. BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill to adopt consent calendar Item 7.f. contingent upon authorization of the remaining four projects. Motion passed by unanimous vote of the Board. President Causey stated that Consent Calendar Item 7.c. would be heard together with Item 8.a. 8. OTHER BOARD ACTION ITEM a. Award a construction contract in the amount of$3,288,000 to K. J. Woods Construction, Inc., the lowest responsive and responsible bidder for the Lafayette Sewer Renovations, Phase 11, District Project 8430; find that the project is exempt from CEQA; authorize the General Manager to execute the contract documents subject to submittal requirements and include up to 5 percent contingency. Reviewed by Engineering & operations Committee. Capital Projects Division Manager Edgar Lopez reviewed the presentation for Item 8.a. included with the agenda materials. In response to a question from Member Williams, Mr. Lopez noted that the project scope includes upsizing certain pipes from 8"to 8" which is the District standard. President Causey expressed concern that the combined bids for Items 7.c. and 8.a. are $1.2 million over budget and, with more projects to follow that are of a similar nature, he is concerned that some of the projects will have to be scaled back. If that becomes necessary, some critical projects may be delayed. He suggested that in view of the changing bid climate staff should review its bidding processes to evaluate whether any changes might be in order to reduce overall project costs and improve efficiencies. He suggested the possibility of waiting until September or October to bid projects in the hope of getting lower bids. Mr. Lopez remarked that the projects are prioritized to address the most critical sewer lines and it is very difficult to remove anything already in the queue. He also showed historical project statistical data which illustrated that timing of bidding and awards do not appear correlated to bid amounts. The economy appears to have had a more direct impact on bid pricing. President Causey asked if KJ woods Construction, Inc., the lowest responsible and responsive bidder for both the Martinez Sewer Renovations, (Phase 5) and Lafayette Sewer Renovations (Phase 11), is capable of handling both projects simultaneously. Mr. Lopez said staff has begun discussions with the contractor on that subject and Mr. Alm noted that legal remedies are available should any significant issues arise. CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes—Book 65-Page 201 Member Williams expressed concern about President Cause 's suggestion Y 9'9' regarding bid timing, noting that it can be like trying to time the stock market. He said he was comfortable with staff using its best judgment in terms of the bidding process. Finally, with regard to the bids for these tworo ects coming p J g in over the Engineer's estimate, he said that because of the long lead time for planning capital projects, staff goes into this process knowing full well that some projects will be underbid and some will be overbid. Member Pilecki stated that a tremendous amount of capital dollars has been saved in recent years when the estimates came in under budget. Even though these two projects exceed the budget, he was comfortable with the staff recommendation to proceed. Member Nejedly expressed deep frustration with what he perceives as the . tendency of the Board to inhibit the work of staff by continuousl negating Y g g their efforts. In response to a question from Member Nejedly, Mr. Lopez said p staff has spent roughly half a million dollars in pre-bid work on the Lafayette . Y Sewer Renovation project. Member Nejedly said it is not the Board'sjob to . suggest how staff does its work. It should be sufficient that staff has identified these projects as needing to be done. By continuously questioning the work of staff, the Board is interrupting their process, and essentially trying t n to do the job of the General Manager. While he was not happy the bids for these two projects exceed the staff estimates, he said he would be voting in favor of both. Member McGill said he generally agreed with Member Nejedly, to which . Member Nejedly said the Board keeps saying that, but thus far the Board Memb ers'a ctions do not match their words. BOARD ACTION: With regard to Consent Calendar Item 7.c., motion was made by Member Nejedly and seconded by Member McGill to grant bid relief to Bay Pacific Pipelines Inc. for construction of the Martinez Sewer Renovations, Phase 5, and direct staff to return their bid bond; find that the project is exempt from CEQA; award the construction contract to the next lowest bidder, K. J. woods Construction, Inc.; and authorize the General Manager to execute the contract documents as recommended. Motion passed by the following vote of the Board: AYES: Members: McGill, Nejedly, Pilecki, Williams NOES: Members: Causey ABSTAIN: Members: None BOARD ACTION: with regard to Item 8.a., motion was made by Member Williams and seconded by Member McGill to find that theJro'ect is p exempt from CEQA; award the construction contract for the Lafayette Y Sewer Renovations, Phase 11, to K. J. woods Construction, Inc.; and authorize the General Manager to execute the contract documents as recommended. Motion passed by the following vote of the Board: CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes--Book 65-Page 202 AYES: Members: McGill, Nejedly, Pilecki, Williams NOES: Members: Causey ABSTAIN: Members: None 9. LEGISLATIVE MATTERS a. Receive update on pending legislative matters and provide direction on priority legislation. Ms. Barnett reviewed the Priority Legislation Tracking Sheet Included with the agenda materials, stating that Board direction was requested with regard to the positions to be taken by Central San on Item No. S (SB 100) and Item No. 7 (SB 231). BOARD ACTION: It was the consensus of the Board Members to support SB 100. BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to support SB 231. Motion passed by unanimous vote of the Board. 10. REPORTS AND ANNOUNCEMENTS a. General Manager } Rep o its a} Presentation on Strategic Plan Fiscal Year 2015-17 Current Year Achievements. Deputy General Manager Ann Sasaki reviewed the presentation included with the agenda materials. BOARD ACTION: Received the presentation. b} Receive District Budget for Fiscal Year 2017-18. Operations and Maintenance portion reviewed by Finance Committee; Capital portion reviewed by Engineering & Operations Committee. Director of Finance and Administration Phil Leiber and Capital Projects Division Manager Edgar Lopez reviewed the presentation included with the agenda materials. Member Pilecki reiterated the point he made at the May 9, 2017 Engineering & operations Committee meeting that some of the contracts in the Fiscal Year 2017-18 Budget will obligate the CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes--Book 65-Page 203 District in future years. He said he was uncomfortable making such a commitment without a system in place for encumbrances. Mr. Bailey said that part of running the District is to assure that recommended actions are consistent with industry best practices. in this case, he said it is standard for projects to span multiple years and there is nothing unique about the budget methodology as proposed. Staff has done its best to indicate the anticipated budget for each project in subsequent years but it is difficult to know the exact numbers. For those projects spanning multiple years, staff will include updated projected figures in future year budgets. Member Pilecki said his concerns would be alleviated if the project contracts contained language that completion of the project is contingent upon subsequent years'budget approval. Member Williams asked if by approving $42 million capital budget for next fiscal year, the Board is essentially committing $347 million over the next five years. Member McGill said things are always going to unfold incrementally. He said he was comfortable with the amounts budgeted by staff because they are consistent with the direction given by the Board as the result of the most recent financial planning workshop. Mr. Bailey said the budget figures are consistent with the Board's direction, and the projections over the first five years are fairly firm. There is room for savings in the second five-year period due to uncertainties such as digesters or gasification. BOARD ACTION: Received the Central San Budget for Fiscal Year 2017-18. C) Update on 2010-17 Winter Storms Damage, including status of sinkhole repairs in Central San's service area and lessons learned from the Miner Road sinkhole in Orinda. [Continued from May 4, 2017.] Mr. Lopez and Risk Management Administrator Shari Deutsch re vie wed the presentation included with the agenda materials. BOARD ACTION: Received the update. CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes—Book 65-Page 204 2) Announcements a) Public bidding for Fire Protection System, Phase 2, District Project 7322 b) Two employees to travel to Indiana and Ohio in May/June to tour air pollution control equipment and solids handling facilities c) Central San Blood Drive on May 31, 2017 d] Update on concerns expressed by William Vaughn during public comment period at April 20, 2017 Board meeting Mr. Bailey said he will be out of the office Monday through Wednesday of next week. BOARD ACTION: Received the announcements. b. Counsel for the District— No report. C. Secretary of the District Ms. Boehme announced the following upcoming Committee meetings: Administration-- Friday, May 26 at 3:00 p.m. Real Estate, Environmental & Planning-- Monday, May 22 at 9.00 a.m. d. Board Members 1) Committee Minutes a) May 9, 2017 —Administration Committee — Member McGill and Member Williams. b) May 9, 2017 --- Engineering & Operations committee— President Causey and Member Pilecki (Alternate). BOARD ACTION: Received the committee minutes. 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. s Member McGill � May 4, 2017 — Contra Costa County Mayors Conference hosted by the City of Walnut Creek. CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting Minutes—Book 65-Page 205 ■ May 15, 2017 — Board Liaison State of the District presentation to the Pleasant Hill city council. ■ May 18-17, 2017 — California Special Districts Association (CSDA) Legislative Days in Sacramento. ■ May 10, 2017 — Board Liaison State of the District presentation to'the Walnut Creek City council. • May 18, 2017 — Industrial Association of Contra Costa County (IACCC) Mayors Forum in Pleasant Hill. Member McGill provided a written report covering his announcements and other meetings. Member Ne'edI -- No report. Member Pilecki — No report. Member Williams ■ May 8, 2017 — Board Liaison State of the District presentation to the Lafayette City Council. President cause • May --10, 2017 Board Liaison Southern Area Briefing in San Ramon. BOARD ACTION: Received the reports and announcements. 3 Reguests 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 None. 12. REQUESTS FOR FUTURE AGENDA ITEMS Alone. CENTRAL CONTRA COSTA SANITARY DISTRICT May 18, 2017 Board Meeting!Minutes—Book 65-Page 206 13. ADJOURNMENT The meeting was adjourned at 4:30 p.m. Paul H. Causey, P.E. President of the Board of Dire ors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: �rn Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District Count] of Contra Costa, State of California