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HomeMy WebLinkAbout01.a. December 7, 2017 Regular Board meeting minutesPage 1 of 11 Item I.a. Central Contra Costa Sanitary District December 21, 2017 TO: HONORABLE BOARD OF DIRECTORS FROM: DONNA M. ANDERSON, PROVISIONAL SECRETARY OF THE DISTRICT SUBJECT: DECEMBER 7, 2017 REGULAR BOARD MEETING MINUTES Attached are the draft minutes of the above Board meeting. Strategic Plan Tie -In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Foster Customer Engagement and Awareness ATTACHMENTS: 1. Draft Minutes of 12-7-17 Board Meeting December 21, 2017 Regular Board Meeting Agenda Packet - Page 6 of 107 Page 2 of 11 11 Central Contra Costa Sanitary District MINUTES* REGULAR BOARD MEETING Board Room Thursday, December 7, 2017 1:30 p.m. DRAF- en Session — Board Room (Video recorded) ROLL CALL BOARD OF DIRECTORS: PAUL H CAUSEY President JAMES A. NEJEDLY President Pro Tem MICHAEL R. MCGILL TAD J PILECKI DAVID R. WILLIAMS A regular meeting of the Board of Directors was called to order by President Causey at 1:30 p.m. Provisional Secretary of the District Donna Anderson called roll: PRESENT: Members: McGill, Nejedly, Pilecki, Williams, Causey ABSENT. Members: None PLEDGE OF ALLEGIANCE The Board, staff and audience joined in the Pledge of Allegiance. PUBLIC COMMENT PERIOD No comments. REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. AWARDS AND PRESENTATIONS 1. Receive renewed District Transparency Certificate of Excellence from the California Special Districts Leadership Foundation (SDLF) This matter was taken out of order, immediately after Item. 8. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. December 21, 2017 Regular Board Meeting Agenda Packet - Page 7 of 107 Page 3 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 2 Colleen Haley, California SDLF Public Affairs Field Coordinator, briefly commented on the significance of the Certificate of Excellence and presented the award to Board President Causey. BOARD ACTION: Received the award. 2. Receive recognition for Central San becoming a member of the Leading Utilities of the World (LUOW) Network Senior Administrative Technician Christina Gee reviewed the presentation included with the agenda material. President Causey congratulated staff for their part in achieving this recognition, and acknowledged the Board for providing the necessary resources for the changes the District has undergone in recent years. BOARD ACTION: Received the Certificate of Membership and "Golden Tap" trophy. CONSENT CALENDAR 3. Approve the following: a. November 16, 2017 Board meeting minutes 4. Review October 2017 Financial Statements and Investment Reports. Approval recommended by Finance Committee. 5. Approve the addition of Option 1 to the Bay Area Commuter Benefits Program (BACBP). Approval recommended by Administration Committee. 6. Authorize the General Manager to execute a six-month extension for the current permit contract with Acme Fill Corporation (Acme) for discharge of treated landfill leachate from the Acme landfill located in Martinez through June 30, 2018. Approval recommended by Real Estate, Environmental & Planning Committee. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to adopt the Consent Calendar as recommended. Motion passed by unanimous vote. OTHER BOARD ACTION ITEMS 7. Review and approve Expenditures dated December 7, 2017. Approval recommended by Finance Committee. December 21, 2017 Regular Board Meeting Agenda Packet - Page 8 of 107 Page 4 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 3 President Causey recused himself from voting on this item because a full year has not yet elapsed since he consulted for recipients of several checks on the expenditures list on matters unrelated to Central San. President Causey exited the Board Room after which President Pro Tem Nejedly called for a vote on the item. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to approve the expenditures dated December 7, 2017. Motion passed by unanimous vote of the Board Members present. [4-0; Causey absent.] President Causey re-entered the Board Room. 8. Accept (1) the comparative audited Financial Statements for fiscal years ended June 30, 2017 and 2016 performed by Maze & Associates, and (2) the auditor's memorandum on internal control and required communications for the fiscal year ended June 30, 2017. Acceptance recommended by Finance Committee. In the absence of Vikki Rodrigues, David Alvey of Maze & Associates presented the audited financial statements for fiscal years ended June 30, 2016 and 2017, noting that the District received a clean opinion again this year. As stated in the memorandum on internal control and required communications, Maze found no material weaknesses or issues of non-compliance. The audit process was smooth, and staff responded to the auditors' requests in a timely manner. Mr. Alvey also responded to several questions from President Causey. BOARD ACTION: Motion was made by Member Nejedly and seconded by Member McGill to accept the audited Financial Statements for fiscal years ended June 30, 2017 and 2016, and the auditor's memorandum on internal control and required communications for fiscal year ended June 30, 2017. Motion passed by unanimous vote. 9. Authorize the General Manager to amend an existing professional engineering services agreement with CDM Smith to add scope and increase the cost ceiling from $97,900 to $433,000 for public-private partnership (P3) advisory services for Central San's Solids Handling P3 Project, District Project 7358. Reviewed by Real Estate, Environmental & Planning Committee. Director of Engineering and Technical Services Jean -Marc Petit reviewed the PowerPoint included with the agenda material and responded to questions from the Board Members. President Causey said he could not vote in favor of this item because of the potential long-term implications on the capital program. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to authorize amendment to the agreement with CDM Smith to December 21, 2017 Regular Board Meeting Agenda Packet - Page 9 of 107 Page 5 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 4 add scope and increase the cost ceiling from $97,900 to $433,000 for public- private partnership (P3) advisory services for Central San's Solids Handling P3 Project, District Project 7358. Motion passed by the following vote: AYES: Members: McGill, Nejedly, Pilecki, Williams NOES: Members: Causey ABSTAIN: Members: None 10. Review alternatives for utilizing $8.8 million Fiscal Year (FY) 2016-17 favorable budget variances and provide direction as to their allocation, and determine how to allocate the $2.5 million budgeted toward unfunded liabilities in FY 2017-18. Reviewed by Finance Committee. Director of Finance and Administration Phil Leiber reviewed the PowerPoint included with the agenda material after which he and Finance Manager Thea Vassallo responded to questions from the Board. Motion was made by Member Williams and seconded by Member McGill with regard to the FY 2016-17 budget variances to direct the General Manager to leave $6.8 million in the Sewer Construction Fund and allocate $2.0 million to the Pension Prefunding Trust; and, with regard to the amount budgeted for FY 2017-18 for unfunded liabilities, to direct the General Manager to allocate all $2.5 million to the Other Post -Employment Benefits (OPEB) Trust. Prior to the vote, Member Pilecki said he was comfortable with all but the proposed allocation of $2.5 million to the OPEB Trust. He recalled the Board's directive at the November 20, 2016 Board Workshop to make annual payments of $2.5 million toward unfunded liabilities in each of the next 10 years (with no specificity as to their allocation to Contra Costa County Employees' Retirement Association (CCCERA), the OPEB Trust, or the new Section 115 Pension Prefunding Trust), for a total $25 million in additional contributions. Given the good progress the District has made in reducing its unfunded liabilities, he said he would prefer that the $2.5 million be allocated toward the capital program, thus reducing pressure on future borrowings and/or rate increases. He requested that the Board consider modifying the motion made by Member Williams in this respect. Member Williams said he was not in favor of amending his motion because the OPEB Trust is still funded at a pretty low percentage. General Manager Roger S. Bailey noted that the Board's directive at the November 2016 workshop was to allocate $2.5 million annually for the next ten 10 years toward unfunded liabilities, with the understanding that staff will bring the item back each year for the Board to make a final decision on the payment before it is made. Member Pilecki requested that the motion be modified to require that allocation of the annual $2.5 million be revisited by the Board each year. December 21, 2017 Regular Board Meeting Agenda Packet - Page 10 of 107 Page 6 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 5 Member McGill said his understanding that the annual revisiting of this issue was included in the November 2016 directive, so incorporating it in the motion merely serves to reinforce the earlier directive. District Counsel called for Member Williams to restate his motion. Member Williams restated his motion and the Board voted as follows: BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill (1) with regard to the FY 2016-17 budget variances to direct the General Manager to leave $6.8 million in the Sewer Construction Fund and allocate $2.0 million to the Pension Prefunding Trust; (2) with regard to the amount budgeted for FY 2017-18 for unfunded liabilities to direct the General Manager to allocate all $2.5 million to the OPEB Trust; and (3) with regard to the additional annual payments of $2.5 million toward unfunded liabilities in each of the next nine years to bring matter of how those funds should be allocated to the Board for direction on an annual basis. Motion passed by unanimous vote. 11. Authorize the General Manager to execute two contracts with (1) Public Financial Management (PFM) and its associated firms and (2) Sperry Capital, Inc. in amounts not to exceed $462,000 and $100,000, respectively, to provide financial advisory services over a period of five years. Reviewed by Finance Committee. Director of Finance and Administration Phil Leiber reviewed the presentation included with the agenda material and responded to questions from the Board Members. In response to a question from Member McGill, Member Nejedly, as Chair of the Finance Committee, said this item appeared to him to be in order; however, given that he is fundamentally opposed to debt financing, he would be voting against the proposal. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to authorize execution of two contracts with (1) Public Financial Management (PFM) and its associated firms and (2) Sperry Capital, Inc. in amounts not to exceed $462,000 and $100,000, respectively, to provide financial advisory services over a period of five years. Motion passed by the following vote: AYES: Members: McGill, Pilecki, Williams, Causey NOES: Members: Nejedly ABSTAIN: Members: None December 21, 2017 Regular Board Meeting Agenda Packet - Page 11 of 107 Page 7 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 6 12. Consider alternative option for developing a formalized local vendor preference policy. Reviewed by Finance Committee. Director of Finance and Administration Phil Leiber reviewed the PowerPoint included with the agenda material. Member McGill moved to table this item indefinitely. The motion died for lack of a second. Member Williams stated that this is the third or fourth time the Board has revisited this issue and he is fundamentally opposed to a local vendor preference policy because businesses need to stand on their own, and it does not make economic sense in the overall scheme of economic growth. He said he would like for this to be the end of the discussion on this subject. Member Pilecki explained the reasoning behind the Finance Committee's recent review of the topic. Mr. Leiber said staff is willing to do whatever the Board wishes with regard to local vendor preference but would appreciate clarity from the Board on the subject. Member Pilecki moved to proceed with Option 2 as presented in the agenda materials. The motion died for lack of a second. President Causey moved that the Board cease any further consideration of a local vendor preference policy for at least two years. Member Williams said if the motion were amended to extend the time to three years, he would second the motion. President Causey agreed to amend his motion accordingly. Prior to voting on the motion, Member Pilecki suggested that the motion be amended to increase the purchasing threshold for obtaining quotes from $3,500 to $5,000 because he believes this would be advantageous to staff. District Counsel Kent Alm said it would be more clear to make two motions. Motion was made by President Causey and seconded by Member Williams for the Board to cease any further consideration of a local vendor preference policy for at least three years. Motion failed by the following vote: AYES: Members: Williams, Causey NOES: Members: McGill, Nejedly, Pilecki ABSTAIN: Members: None December 21, 2017 Regular Board Meeting Agenda Packet - Page 12 of 107 Page 8 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 7 Motion was made by Member Williams and seconded by Member Causey for the Board to cease consideration of a local vendor preference policy for at least two years. Motion failed by the following vote: AYES: Members: NOES: Members: ABSTAIN: Members: Williams, Causey McGill, Nejedly, Pilecki None BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to increase the purchasing threshold for obtaining quotes from $3,500 to $5,000. Mr. Leiber said that staff did not come to this meeting with a full analysis of such a proposal but would be comfortable with this increase and, in fact, there may be some advantages to increasing the limit in terms of administrative staff time. Motion passed by the following vote: AYES: Members: McGill, Pilecki, Williams, Causey NOES: Members: Nejedly ABSTAIN: Members: None The discussion continued briefly as to the merits of Standing Committees bringing forth items that have previously been voted on by the full Board. No conclusions were reached. 13. Authorize the Board President to execute a letter of support for water exchange between Central San, Contra Costa Water District, and Santa Clara Valley Water District (SCVWD). Approval recommended by Real Estate, Environmental & Planning Committee. Program Manager for Resource Recovery Melody LaBella reviewed the PowerPoint and draft letter of support included with the agenda material. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to authorize the Board President to execute a letter of support for water exchange as recommended. Motion passed by unanimous vote. 14. Appoint Board President for a one-year term commencing January 1, 2018 BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to appoint Member Nejedly as Board President for a one-year term commencing January 1, 2018. Motion passed by the following vote: AYES: Members: McGill, Pilecki, Williams, Causey NOES: Members: None ABSTAIN: Members: Nejedly December 21, 2017 Regular Board Meeting Agenda Packet - Page 13 of 107 Page 9 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 8 15. Appoint Board President Pro Tem for a one-year term commencing January 1, 2018 BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to appoint Member Williams as Board President Pro Tem for a one-year term commencing January 1, 2018. Motion passed by the following vote: AYES: Members: McGill, Nejedly, Pilecki, Causey NOES: Members: None ABSTAIN: Members: Williams REPORTS AND ANNOUNCEMENTS 16. General Manaaer —Announcements None. 17. Counsel for the District No report. 18. Secretary of the District Ms. Anderson announced the following upcoming Committee meetings: Administration — Tuesday, December 12 at 8:30 a.m. Engineering & Operations — Tuesday, December 12 at 1:00 p.m. Ms. Anderson also announced that a special Board meeting will be held Monday, December 11 at 10:00 a.m. in Concord for a Board Workshop on Strategic Planning followed by a closed session to conduct Secretary of the District interviews. BOARD ACTION: Received the announcements. 19. Board Members — Committee Minutes a. November 21, 2017 — Administration Committee — Member McGill and Member Williams b. November 21, 2017 — Finance Committee — Member Nejedly and Member Pilecki C. November 27, 2017 — Real Estate, Environmental & Planning Committee — President Causey and Member Pilecki BOARD ACTION: Received the Committee minutes. December 21, 2017 Regular Board Meeting Agenda Packet - Page 14 of 107 Page 10 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 9 20. Board Members - 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. a. Member McGill • December 4-7, 2017 — California Public Employers Labor Relations Association (CALPELRA) Conference in Monterey Member McGill provided a written report covering his announcements and other meetings. Member Neiedly Member Pilecki Member Williams President Causer • December 5, 2017 — Board Liaison event — Danville Mayor Renee Morgan's Installation and Community Service Awards BOARD ACTION: Received the reports and announcements. 21. 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. EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS None. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that closed sessions would be held for Items 22 and 23. RECESS TO CLOSED SESSION The Board recessed at 3:30 p.m. to reconvene in closed session in the Caucus Room. December 21, 2017 Regular Board Meeting Agenda Packet - Page 15 of 107 Page 11 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT December 7, 2017 Board Meeting Minutes - Page 10 Closed Session (Not video recorded) CLOSED SESSION 22. Personnel matters pursuant to Government Code Section 54957. Public Employment — Title: Secretary of the District 23. 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 RECESS TO OPEN SESSION The Board recessed at 4:20 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION Items 22 and 23 — None. ADJOURNMENT The meeting was adjourned at 4:21 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: Donna M. Anderson Provisional Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California December 21, 2017 Regular Board Meeting Agenda Packet - Page 16 of 107