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HomeMy WebLinkAbout03.a. Approve minutes of meeting held 07-05-18 Page 1 of 11 Item 3.a. CENTRALSAN CENTRAL CONTRA COSTA SANITARY DISTRICT July 19, 2018 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: JULY5, 2018 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 - Build external customer relationships and awareness ATTACHMENTS: 1. Draft Board Minutes 07-05-18 July 19, 2018 Regular Board Meeting Agenda Packet- Page 7 of 111 Page 2 of 11 CENTRAL SAN CENTRAL •NTRA COSTA SANITARY DISTRICT 5019 • MINUTES* BOARD OF DIRECTORS: JAMES A.NEJEDLY President REGULAR BOARD MEETING DAVID R. WILLIAMS President Pro Tent Board Room p PAUL CAUSEY Thursday, Jul 5, 2010 MICHAEL R.MCGILL y TAD J.PILECKI 1:30 p.m. DRAFT Open Session — Board Room (Video recorded) ROLL CALL A regular meeting of the Board of Directors was called to order by President Nejedly at 1:30 p.m. Secretary of the District Katie Young called roll: PRESENT. Members: Causey, McGill, Pilecki, Williams, Nejedly ABSENT.- Members: None PLEDGE OF ALLEGIANCE The Board, staff and audience joined in the Pledge of Allegiance. INTRODUCTIONS 1. New employees: • Joy Smith, Administrative Assistant, Operations/Collection System Operations, effective June 18, 2018 • Anthony Smith, Maintenance Technician III - Mechanical, Operations/Plant Maintenance Division effective June 25, 2018 • Geoff Niswander, Household Hazardous Waste Technician I, Engineering/Environmental and Regulatory Division, effective June 26, 2018 These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. July 19, 2018 Regular Board Meeting Agenda Packet- Page 8 of 111 Page 3 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes - Page 2 • Bryan McGloin, Management Analyst, Engineering/Planning & Development Services/Asset Management Group, effective June 29, 2018 BOARD ACTION: Welcomed new employees. PUBLIC COMMENT PERIOD No comments. REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. CONSENT CALENDAR 2. Approve the following: a. June 21 , 2018 Regular Board meeting minutes 3. Receive May 2018 Financial Statements and Investment Reports 4. Authorize the General Manager to enter into a three-year professional services agreement with Maze & Associates, Certified Public Accountants, to perform financial audit services for Fiscal Years 2017-18 through 2019-20, with the option to extend for two additional years 5. Receive Internal Audit Report on Payroll Controls 6. Adopt Resolution No. 2018-012 authorizing the execution of a new adoption agreement for the 457 Deferred Compensation Plan restating existing provisions and incorporating updates, and allowing Board Members the ability to benefit from the low-cost investment opportunities available through the Plan 7. Waive non-material irregularities; award a construction contract in the amount of $169,986 to Lamassu Utility Services, Inc., the lowest responsive bidder for the Cured-In-Place Pipe Contract 2018-2020, District Project 8441; and consider exemption from the California Environmental Quality Act (CEQA) 8. Authorize the General Manager to purchase electrical generation from Community Choice Aggregation, MCE, at MCE Light Green 50 Percent renewable service level President Nejedly said that Member Williams wished to pull Item 8 from the Consent Calendar for further discussion. BOARD ACTION: Motion was made by Member Causey and seconded by Member Pilecki to adopt Items 2 through 7 on the Consent Calendar as recommended. Motion passed by unanimous vote. July 19, 2018 Regular Board Meeting Agenda Packet- Page 9 of 111 Page 4 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes - Page 3 With regard to Item 8, Member Williams asked if Central San could opt out or switch providers in the future if Marin Clean Energy (MCE) contracts become more expensive. Plant Maintenance Division Manager Neil Meyer stated that the District can opt out at any time with a fee of$25 per account and a one-year commitment to PG&E after opting out. Member Williams requested a yearly update on the Marin Clean Energy contracts. BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill to authorize the General Manager to purchase electrical generation from Community Choice Aggregation, MCE, at MCE Light Green 50 Percent renewable service level. Motion passed by unanimous vote. OTHER BOARD ACTION ITEMS 9. Approve expenditures dated July 5, 2018 Member Causey recused himself from voting on this item because he has consulted for recipients of several checks on the expenditures list on matters unrelated to Central San. He exited the Board Room. President Nejedly called for a vote on the item. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to approve the expenditures dated July 5, 2018. Motion passed by unanimous vote of the Board Members present. [4-0-1; Causey absent.] Member Causey re-entered the Board Room. 10. Consider adopting Resolution No. 2018-013 appointing the Financing Team for refinancing of existing 2009 outstanding debt obligations and authorizing the negotiated sale of refinancing bonds Director of Finance and Administration Phil Leiber provided a brief overview of the Position Paper and other material included with the agenda packet. Member Causey inquired about the net savings expected from the 2009 bond refinancing. Mr. Leiber responded that potential net savings is estimated to be at least $1 million. BOARD ACTION: Motion was made by Member Williams and seconded by Member Pilecki to adopt the revised version of proposed Resolution No. 018- 013 that had been distributed prior to the meeting. Motion passed by unanimous vote. July 19, 2018 Regular Board Meeting Agenda Packet- Page 10 of 111 Page 5 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes - Page 4 11. Follow-up on May 17, 2018 Board request for a table comparing AgLantis/CoCo San Sustainable Farm progress to performance objectives Planning and Development Services Division Manager Danea Gemmell reviewed the comparison charts included with the agenda material. Member Causey expressed concern about the Annual Report and Strategic Plan (Annual Report) submitted by AgLantis and suggested rejecting the Annual Report and requiring resubmittal. He stated that the report needs to provide detailed information for compliance with the lease and acceptable deadlines for completion. He opined that staff needs to stop spending time on this project and that there has been no credit given to the District by AgLantis for time and money already spent on this project. Ms. Gemmell advised the Board that the District received the Title 22 Permit amendment for agriculture uses and the recycled water meter was recently installed for the farm. Member Pilecki suggested turning over the responsibility of lease compliance to staff and for the Board to only make policy decisions. Member Williams disagreed with Member Pilecki, stating that the Annual Report was unacceptable, and he agreed with Member Causey's suggestion to reject it and request resubmittal for Board approval. He stated that there was no quantification of when crops will be donated to the local Food Bank or schools, which had been a selling point from AgLantis at the time the lease was approved. He wanted to know when crops will be available. Member McGill inquired about the notification process for non-performance in the lease. District Counsel Kent Alm responded a 30-day cure period was included in the lease after notice was provided for any failures to meet the terms of the lease. President Nejedly expressed his frustration with the amount of time and effort staff has contributed to this project when no credit has been given to the District. He stated that he agreed with Members Causey and Williams and believes the District should stop spending money on the project. There was a discussion on whether to require quarterly reports and the timeline for resubmittal of a revised annual report. Member Causey recommended a 60-day timeline for resubmittal. Member Pilecki suggested review the history of the project and establishing a schedule that AgLantis can comply with and require any future report they submit. BOARD ACTION: Motion was made by Member Causey and seconded by Member Williams to direct staff to reject the Annual Report submitted by AgLantis and request AgLantis to resubmit an annual report within 60 days July 19, 2018 Regular Board Meeting Agenda Packet- Page 11 of 111 Page 6 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes - Page 5 with information that demonstrates compliance with the lease terms. Motion passed by the following vote: AYES: Members Causey, Nejedly, and Williams NOES: Members McGill and Pilecki ABSTAIN: None LEGISLATIVE MATTERS 12. Receive update on pending legislative matters and potential ballot propositions and provide direction on priority legislation Communications and Intergovernmental Relations Manager Emily Barnett advised that AB 2613 regarding paying wages and penalties for errors on a paycheck will likely not move forward. Member Pilecki requested staff provide potential propositions that would affect the District. Ms. Barnett stated that her thoughts in only including qualified propositions is that it would save the Board time not addressing measures that may not make it through the qualification process. Ms. Barnett stated that in the future, to address Member Pilecki's request, she would provide information to the Board on potential propositions that would have a direct impact on the District. BOARD ACTION: Received the update. REPORTS AND ANNOUNCEMENTS 13. General Manager— Reports a. Receive presentation on pre-selection process for key equipment in support of the Solids Handling Facility Improvements Project, District Project 7348 Director of Engineering and Technical Services Jean-Marc Petit reviewed the presentation included with the agenda material. Member Williams asked for clarification on the described bid process. Mr. Petit stated that contract will be awarded to a qualified and lowest bidder. BOARD ACTION: Received the presentation. b. Update on recent meeting with City of San Ramon officials to discuss Central San's recycled water opportunities Program Manager Melody LaBella reviewed the presentation included with the agenda material. President Nejedly expressed concern about the project and the previous difficulty caused by the overflow at the San Ramon Pumping Station, after the July 19, 2018 Regular Board Meeting Agenda Packet- Page 12 of 111 Page 7 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes- Page 6 Dougherty Valley development's wastewater flows were routed into the San Ramon Pumping Station. Member Williams agreed with his concerns. Mr. Alm added that the neighborhood surrounding the San Ramon Pumping Station funded and hired a lawyer at the time and the lawyer filed a lawsuit over the overflow, along with the City of San Ramon, against Central San. Member Williams expressed concern about both operational issues and Central San potentially never getting its wastewater flow back once this diversion is allowed, particularly when the new growth in the Tri-Valley is in East Dublin, which will not benefit Central San's customers. Mr. Bailey clarified that this project is not being pushed by staff but is rather a request that DERWA (Dublin San Ramon Services District-East Bay Municipal Utility District Recycled Water Authority) has made of the Board and the Board asked staff to proceed with evaluating a pilot diversion. Mr. Bailey referenced concerns about the potential financial impact that could result from Central San collecting revenues for a service it would not be providing if this diversion is allowed to proceed. Member McGill complimented staff for doing a good job at letting the DSRSD Liaison Committee members know that it is not just the physical connection, but also the community outreach that must be addressed properly. He highlighted some of the potential engineering issues and added that whatever agreement is put together if this project moves forward has to have absolute assurance that DERWA will give up the flow and Central San, on an annual basis, should have to recommit the wastewater flow or it automatically returns to Central San. Mr. Bailey advised that the City of San Ramon requested that Central San host a community meeting to inform the public should the project move forward. Member Causey suggested staff collect more information and evaluate the challenges and pros and cons of the recycled water project. The length of the contract term was discussed. Mr. Alm stated that the length and conditions could be added to an agreement. Mr. Bailey advised that staff will continue with the meeting with the City of San Ramon and that financial impacts would be further assessed for the project. BOARD ACTION: Received the update. 14. General Manager—Announcements a. Announcements — July 5, 2018 July 19, 2018 Regular Board Meeting Agenda Packet- Page 13 of 111 Page 8 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes- Page 7 1) Public Bidding for Solids Conditioning Building Chiller Replacement, District Project 7326-A 2) Employee Appreciation Picnic Scheduled for August 15, 2018 3) Staff Time Charged to CoCo San Sustainable Farm/AgLantis Project No further announcements were made during the meeting. BOARD ACTION: Received the announcements. 15. Counsel for the District Mr. Alm stated that there would be no closed session for Item 21. 16. Secretary of the District Ms. Young announced the following upcoming Committee meetings: Engineering & Operations— Monday, July 9 at 9:00 a.m. Administration — Tuesday, July 10 at 8:30 a.m. Real Estate, Environmental & Planning— Wednesday, July 19 at 2:00 p.m. Ms. Young also announced that the 2018 Election Nomination/Filing Period opens July 16. It will close August 10, 2018, unless extended by five days for non- incumbents only. BOARD ACTION: Received the announcements. 17. Board Members — Committee Minutes a. June 20, 2018 — Engineering & Operations Committee — Chair Causey and Member McGill b. June 20, 2018 — Real Estate, Environmental & Planning Committee — Chair Causey and President Nejedly C. June 26, 2018 — Finance Committee — President Nejedly and Member Pilecki BOARD ACTION: Received the Committee minutes. 18. 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 Causer - No report. Member McGill • East Bay Leadership Council 2018 Installation Dinner in Pleasant Hill July 19, 2018 Regular Board Meeting Agenda Packet- Page 14 of 111 Page 9 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes - Page 8 Member McGill also provided a written report covering his announcements and other meetings. Member Pilecki - No report. Member Williams - No report. President Nejedly - No report. BOARD ACTION: Received the reports and announcements. 19. Board Members - 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. 20. Board Members - Other Items a. Provide voting direction to Member McGill, the District's representative and voting delegate for the Contra Costa Chapter of the California Special Districts Association (CSDA), on how to vote at the upcoming CSDA election for a representative for the Bay Area Network, Seat A Member McGill suggested voting for Chad Davisson. President Nejedly abstained, stating that he did not know any of the candidates. BOARD ACTION: Motion was made by Member McGill and seconded by Member Williams to cast the District's vote for Chad Davisson. Motion passed by the following vote: AYES: Members Causey, McGill, Pilecki, Williams NOES: None ABSTAIN: Member Nejedly EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS None. ANNOUNCE CLOSED SESSION (pursuant to Government Code Section 54957.7) Mr. Alm announced that a closed session would be held for Items 22 through 24. He reiterated that no closed session would be held for Item 21. July 19, 2018 Regular Board Meeting Agenda Packet- Page 15 of 111 Page 10 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes - Page 9 RECESS TO CLOSED SESSION The Board recessed at 3:39 p.m. to reconvene in closed session in the Caucus Room. Closed Session (Not video recorded) CLOSED SESSION 21. Personnel matters pursuant to Government Code Section 54957(b)(1) - Performance Evaluations for following members of Executive Management Team: General Manager, Secretary of the District, and District Counsel 22. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • IEDA • Roger S. Bailey, General Manager • Ann K. Sasaki, Deputy General Manager • Philip R. Leiber, Director of Finance and Administration • Teji O'Malley, Human Resources Manager • The District's attorneys Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS/CG) • Management Group 23. Liability claim pursuant to Government Code Section 54954.5(e): • Claimant: Newell Village, Walnut Creek — Sewer Service Charge refund for APN 184-070-027 for portions of Fiscal Years 2014-15, 2015-16, 2016-17 and 2017-18 • Agency claimed against: Central Contra Costa Sanitary District Staff Recommendation: Review and recommend Board approval. 24. Conference with Legal Counsel — existing litigation pursuant to Government Code Section 54956.9(d)(1). • Settle v. Central Contra Costa Sanitary District, et al., Contra Costa County Superior Case No. MSC17-01691 July 19, 2018 Regular Board Meeting Agenda Packet- Page 16 of 111 Page 11 of 11 CENTRAL CONTRA COSTA SANITARY DISTRICT July 5, 2018 Board Meeting Minutes-Page 10 RECESS TO OPEN SESSION The Board recessed at 4:59 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION None. ADJOURNMENT The meeting was adjourned at 5:00 p.m. James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California July 19, 2018 Regular Board Meeting Agenda Packet- Page 17 of 111