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HomeMy WebLinkAboutBOARD MINUTES 08-16-18 CENTRALENTRAL SAN * • ■ COSTA SANITARYDISTRICT MINUTES* BOARD OF DIRECTORS: JAMES A.NEJEDL Y President REGULAR BOARD MEETING DAVID R. WILLIAMS Prevident Pro Tem Board Room PAUL H CAUSEY Thursday, August 16, 2018 MICHAEL R.MCGILL TAD J.PILECKI 1:30 p.m. 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.- oll:PRESENT: Members: Causey, McGill, Pilecki, Williams, Nejedly ABSENT.- Members: None J 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. CONSENT CALENDAR 1. Approve the following: a. August 2, 2013 Board meeting minutes 2. Set public hearing for October 4, 2018 at 1:30 p.m. to consider establishing Harper Lane Area Contractual Assessment District (CAD) No. 2018-1 in Danville These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 66— Page 144 CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes—Book 66-Page 146 3. Adopt the following three new Board Policies (BP) and proposed resolution: • BP 035 - Purchasing • BP 036 - Informal Bidding • BP 037 - Delegation of Authority to General Manager • Resolution No. 2018-016 delegating claims handling authority to the General Manager and rescinding Resolution No. 2016-046 4. Approve salary adjustment for General Manager Roger S. Bailey and Fourth Amendment to the July 11, 2013 Employment Agreement, effective August 1, 2018 . Approve salary adjustment for Secretary of the District Katherine Young and First Amendment to the February 11, 2018 Employment Agreement, effective August 1, 2018 6. Adopt proposed Resolution No. 2018-017 (1) including the positions of Director of Engineering and Technical Services and Director of Finance and Administration as unrepresented at-will employees, (2) outlining the employment benefits for unrepresented at-will positions, and (3) rescinding Resolution No. 2018-007 7. Adopt proposed Resolution No. 2018-018 (1) approving a salary adjustment for unrepresented at-will employees effective April 18, 2018, (2) outlining the employment benefits for unrepresented at-will positions, and (3) rescinding Resolution No. 2018-017 President Nejedly stated that Tim Potter, President of Central San's Management Support/Confidential Group (MS/CG) bargaining group, requested to pull the last several items from the Consent Calendar for discussion. Mr. Potter addressed the Board and expressed his frustration with the unsuccessful negotiations. He believes the contract presented to the Board by the MSICG group is a good faith effort and fair. He stated that although the employee contracts on the Consent Calendar for approval today are well deserved, he believes those employees should not receive a contract amendment until all bargaining groups have reached an agreement. Mr. Potter stated that the positive customer service and cost-effective reputation would not happen without members of MS/CG or other bargaining groups and asked that the Board Members consider the contractual changes provided to the Board by MS/CG and reach an agreement on the contract to start saving for the ratepayers. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to adopt all Items on the Consent Calendar. Motion passed by unanimous vote. CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes--Book fib-Page 146 PUBLIC HEARINGS 8. Conduct a public hearing to consider adopting the following for South Jackson Way Contractual Assessment District (CAD) No. 2016--1 in Alamo: Resolution No. 2018-019 confirming and levying final assessments; • Resolution No. 2018-020 directing that the Fiscal Year 2018-19 assessments be placed on the Contra Costa County property tax roll for collection; and • Uncodified Ordinance No. 303 establishing reimbursement fees for the properties which connect to District Project 6602 (South Jackson Way CAD No. 2016-1) President Nejedly opened the public hearing. There being no members of the public present, the public hearing was closed. Member Pilecki asked staff to locate Linden Court on a map as it was mentioned in the Position Paper. Senior Engineer Thomas Brightbill advised that it is between Lots #9 and#13 at the southern end of South Jackson Way. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Causey to adopt Resolution No. 2018-019, Resolution No. 2018-020, and uncodified ordinance No. 303. Motion passed by unanimous vote. OTHER BOARD ACTION ITEMS 9. Receive presentation by Matteo Crow, and consider endorsement of Proposition 3, The Water Supply and water Quality Act of 2018 Prior to the presentation Member Williams asked District Counsel!Cent Alm what are the limitations on outreach should Central San endorse this proposition. Mr. Alm advised that Central San cannot spend public funds to promote the proposition but it is not prohibited from taking a position as a supporter of the proposition. Mr. Crow, Campaign Manager for the proposition, reviewed the presentation included with the agenda material and answered several questions from Board i111embers. Member Williams asked if a thorough explanation of the distribution of the bond money would be included on the November ballot. Mr. Crow stated that a short summary would be Included but the full text is included on the website. Member Causey asked if any of the money indicated in the bond would support the Governor's WaterFix program. Mr. Crow stated that there is no specific language banning the use of the money for the Governor's WaterFix program. CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes—Book fib-Page 147 Member Williams staled that he appreciated the informative presentation but opined that endorsing the bond feels like advocacy and he would prefer to remain neutral. Member Pilecki concurred. Member Causey stated that the District could benefit in terms of funding included in the bond for recycled water programs. Member McGill stated that he is Willing to hear more on the bond but is hesitant to support it due to its complexity. President Nejedly believes that the public should make its own decision and is not in favor of Central San supporting the bond. No motion was made. 10. Consider Guiding Principles for a future temporary diversion agreement with Dublin San Ramon Services District (DSRSD) East Bay Municipal Utility District (EBMUD) Recycled Water Authority (DERWA) Resource Recovery Program Manager Melody LaBella and Planning and Development Services Division Manager Danea Gemmell reviewed the presentation included with the agenda material, which included nine proposed Guiding Principles. Member Causey asked if Central San might pay DERWA for any variable cost savings realized. Mr. Bailey responded that could be open for a conversation and clarified that he wanted to make sure that the Board is aware that Central San has a tremendous fixed cost to the extent of collecting revenues to cover that cost and need to be very careful about removing that from the revenue stream. Member Causey stated that he was under the impression that the Board already directed that there would be no additional cost to Central San, and that would mean not transferring any variable costs to DERWA. Mr. Bailey clarified that the two are not mutually exclusive and it would be a net zero for Central San to share saved variable costs. Member Pilecki added that this refers to the $243,Doo figure in the presentation that would be saved and not spent otherwise. Member Causey added that the $243,000 could be put into Central San's Recycled Water Program and benefit Central San ratepayers and advocated keeping any variable cost savings rather than sharing it with DERWA. Member Williams added that we are all public agencies and the concept is not to make any money on this. The concept is to do broadly what is good for our ratepayers and for the region and have everybody whole. Central San really should not be making money on this arrangement. Member Pilecki stated that he, Mr. Bailey and Ms. Gemmell had the opportunity to meet with the City of Concord last week and they were very clear that they do not want to incur any additional costs associated With diversions from Central San's collection system. CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes—Book 66-Page 148 There was a discussion on the potential for Proposition 218 challenges in the future and the need to be mindful of the issue if this project moves forward. Member Causey requested either broadening or deleting Guiding Principle eight, as it may be difficult to serve as much recycled water in Central San's service area as the amount of wastewater diverted from Central San's service area. Mr. Bailey stated that staff would like to keep the principle as broad as possible to make the diversion available to the extent of the demand and the freedom to use the water where DERWA sees fit and that it helps with Guiding Principle seven's community support. President Nejedly stated that a lot of work has been done towards this project and that he recalls that the Board was not too keen on the project. Mr. Bailey clarified that since there was never an official vote during the last discussion, he was moving forward on the original guidance of the Board to advance this project. Member McGill stated that he could accept the principles and would like to see the project continue forward. Member Williams advised he views this Board is looking after the ratepayers' interests primarily for wastewater service, but there is another layer of responsibility to look at the interest of the ratepayers and working with the water purveyors in the service area to provide this resource under the concept of those who benefit pays for it. He expressed that the principles are good to provide direction to staff to move forward. However, there are some very complex issues to resolve, and he is uncertain if we can meet all nine of these principles with an agreement. Mr. Bailey stated that staff would have to work with District Counsel to incorporate language into the agreement regarding the risk and violations of any of the principles presented. DERWA Authority Manager Mike Tognolini thanked Mr. Bailey for sending the presentation earlier this week and stated that staff had no concerns with the proposed Guiding Principles as presented and is optimistic that the issues can be resolved and create an agreement that works for all parties. Member Pilecki inquired about the timing of the agreement and DERWA's need for additional supply. Mr. Tognolini responded that this year's operational demands have been ►net, but there may be shortages as soon as next summer, so they would like to have it in place for next year. Mr. Tognolini added that if an agreement can be reached in the next several months, there should be plenty of time to build the project. Motion was made by Member McGill to support the project subject to the Guiding Principles as presented. Member Pilecki seconded the motion. CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes—Book 66-Page 149 Mr. Bailey and Member Causey requested that the motion be bifurcated into two motions, one to accept the Guiding Principles, and another to accept the project. Mr. Alar said the Board could direct staff to move forward with processing an agreement to bring the project to fruition. Member McGill clarified his motion by moving to accept the Guiding Principles and give staff the flexibility to do any nuances that came out of the discussion at this meeting and then move forward with the project. President Nejedly noted that the last time this potential project was discussed the Board was non-committal as to whether it wished to proceed. if the Board now wishes to accept the Guiding Principles, then he would entertain a motion. Member McGill's earlier motion was superseded by the following new motion: BOARD ACTION: Motion was made by Member Williams and seconded by Member McGill to accept the proposed Guiding Principles. Motion passed by the following vote: AYES: Members: McGill, Pilecki, Williams NOES: Members: Nejedly ABSTAIN: Members: Causey Motion was made by Member McGill and seconded by Member Causey to direct staff to draft an agreement consistent with the Guiding Principles for future consideration by the Board. Member Williams wanted the motion to be clear that to the extent staff is able to negotiate an agreement consistent with the Guiding Principles, that would not constitute approval of the project. Actual project approval would be an item for consideration by the Board at some future date, after a proposed agreement is presented. Member McGill and Member Causey agreed with this understanding. BOARD ACTION: Motion was made by Member McGill and seconded by Member Causey to direct staff to attempt to negotiate an agreement consistent with the Guiding Principles for future consideration by the Board. Motion passed by the following vote: AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: Nejedly CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes—Book 66-Page 150 REPORTS AND ANNOUNCEMENTS 11. General Manager--Announcements a. Announcements —August 15, 2018 1} Public Bidding for Plant Control System 1/0 Replacement Project, Phase 1, District Project 7339 2} Standard & Poors Issues Credit Ratings in Connection with Central San's Debt Refinancing Transaction 3} David Wyatt to Attend and Emily Barnett to Attend/Present at the 2018 North American Hazardous Materials Management Association (NAHMMA) National Conference in Portland, Maine from August 27- 30, 2018 4} Resource Recovery Program Manager to attend Annual WateReuse Symposium in Austin, Texas from September 9-12, 2018 5} Staff to Attend Water Environment Federation Technical Exhibition and Conference (WEFTEC) in New Orleans, Louisiana — September 29- October 2, 2018 5} District Receives Certificate of Achievement for Excellence in Financial Reporting (CAFR) Award 7} Second Quarter 2018 Update on Central San's Energy Usage 8} 2009 Bond Refinancing — Pricing for New Bonds General Manager Roger S. Bailey made the following announcement at the meeting: 9) Mr. Bailey announced that he will be away from the office on vacation the week starting August 20, 2018 BOARD ACTION: Received the announcements. 12. Counsel for the District No report. 13. Secretary—of the District Ms. Young announced the following upcoming Committee meetings: Administration -- Tuesday, August 21 at 8:30 a.m. CENTRAL CONTRA COSTA SANITARY DISTRICT August 1 fi, 2418 Board Meeting Minutes—Book 66-Page 151 Finance— Tuesday, August 21 at 2:00 p.m. Ms. Young announced that the 2018 Election NominationlFifing Period has closed. Both incumbents, Members McGill and Williams, have filed and Martinez resident ent Stephen Maris also filed. Ms. Young also announced that the randomized alphabet order for the names appearing on the ballot will be determined by the Secretary of State later in the day. BOARD ACTION: Received the announcements. 14. Board Members — Committee Minutes a. August 7, 2018 —Administration Committee — Chair McGill and Member Williams BOARD ACTION: Received the Committee minutes. 15. Board Members - Reports and Announcements Board Member reports on recent meetings or conferences for which they received the stipend or for p which the District paid their expenses. p a. Member Causev-- No report. Member McGill ■ August 2, 2018 - Contra Costa County Mayors' Conference hosted by y the Town of Danville • August 7, 2018 - Board Liaison presentation to Walnut Creek City Council ■ August 8-10, 2018 - California Association of Sanitation Agencies (CASA) Annual Conference in Monterey • August 15, 2018 - Tri-Valley Mayors' Summit in San Ramon Member McGill also provided a written report coveringhis announcements and other meetings. Member Pilecki • August 10, 2018 - Board Liaison meeting with Mayor and Cit Manager of Concord y Y g Member Pilecki informed the Board that he received an inquiry from the g � Mayor of the City of Concord who was wondering how to get representation n on Central Sans Board. He suggested possibly creating a non-voting position. President Nejedly noted that the City of Concord has not come to meetings g in recent years, in spite of being provided the agendas. CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes--Book 66-Page 152 Mr. Bailey stated that staff Includes the City of Concord in distributions lists for Committee and Board agendas currently and that he meets with the Mayor and City Manager a couple times a year and extends a personal Invitation to attend the meetings. Member Williams • July 23-28, 2018 - National Association of Clean Water Agencies (NACWA) Annual Conference in Boston, MA • August 8-10, 2018 - CASA Annual Conference in Monterey Member Williams also provided a written report covering the NACWA Conference. President Nejedly_ - No report. BOARD ACTION: Received the reports and announcements. 16. 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. Staff Recommendation: Consider any requests. 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 Item 17. RECESS TO CLOSED SESSION The Board recessed at 3:40 p.m. to reconvene in closed session in the Caucus Room. CENTRAL CONTRA COSTA SANITARY DISTRICT August 16, 2018 Board Meeting Minutes--Book 66-Page 153 Closed Session (Not video recorded) CLOSED SESSION 17. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • I EDA • 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 Employee Organizations: ■ Employees' Association, Public Employees Union, Local One ■ Management Support/Confidential Group (MS/CG) • Management Group RECESS TO OPEN SESSION The Board recessed at 5:01 p.m. to reconvene in open session in the Board Room. REPORT OUT OF CLOSED SESSION None. ADJOURNMENT The meeting was adjourned at 5:02 p.m. f Y James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie You. Secretary he District Cerltral Contra Costa Sanitary District County of Contra Costa, State of California