HomeMy WebLinkAbout01.a. Approve minutes of meeting held 11-01-18 Page 1 of 11
Item l.a.
CENTRALSAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
November 15, 2018
TO: HONORABLE BOARD OF DIRECTORS
FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT
SUBJECT: NOVEMBER 1, 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 Meeting Minutes 11-0 1-18
November 15, 2018 Regular Board Meeting Agenda Packet- Page 6 of 254
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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 PAUL CAUSEY
Thursday, November 1, 2018 MICHAEL R.MCGILL
TAD J.PILECKI
1:30 p.m. DRAFT
Open Session — Board Room
(Video recorded)
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.
PUBLIC COMMENT PERIOD
No comments.
REQUESTS TO CONSIDER MATTERS OUT OF ORDER
None.
AWARDS AND PRESENTATIONS
1. Receive the 2018 Excellence in Information Technology (IT) Practices Award from
Municipal Information Systems Association of California (MISAC)
Mr. Jeff Lewis, representing MISAC, presented the award to Board President
Nejedly.
BOARD ACTION: Received the award.
These summary minutes are supplemented by a corresponding video recording available on the District's
website at centralsan.org.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
November 1, 2018 Board Meeting Minutes-Page 2
CONSENT CALENDAR
2. Approve the following:
a. October 18, 2018 Regular Board meeting minutes
3. Receive September 2018 Financial Statements and Investment Reports
4. Adopt Resolution No. 2018-035 authorizing (1) execution of a real property
agreement for property located at 312 Railroad Avenue in Danville, and (2) recording
of the agreement with the Contra Costa County Recorder
5. Adopt Resolution No. 2018-036 authorizing (1) execution of a real property
agreement for property located at 230 Rheem Boulevard in Moraga, and
(2) recording of the agreement with the Contra Costa County Recorder
6. Authorize the General Manager to execute professional engineering services
agreements with TJC and Associates, Inc. and ArcSine Engineering in an amount
not to exceed $375,000 each to provide as-needed electrical, instrumentation, and
controls engineering services
7. Reject protest and award a construction contract in the amount of$5,665,000 to
CWS Construction Group, Inc., the lowest responsive bidder for the Plant
Operations Building Seismic Upgrades and Server Room Relocation, District
Projects 7362 and 8243; authorize the General Manager to execute agreements with
MWA Architects, Kleinfelder, Inc., and ComputerLand; consider exemption from the
California Environmental Quality Act (CEQA); include up to a 10-percent
contingency; and authorize the General Manager to transfer up to $1 million from the
Capital Program
President Nejedly stated that Board Member Causey requested Item #7 be removed
from the Consent Calendar.
BOARD ACTION: Motion was made by Member McGill and seconded by
Member Pilecki to adopt Consent Calendar Items 2-6 as recommended.
Motion passed by unanimous vote.
With regard to Item 7, Director of Engineering and Technical Services Jean-Marc
Petit provided the Board with a presentation included in the agenda materials.
Development Services Supervisor Kim Stahl answered questions from the Board
Members regarding the space capacity of the permit counter and the difference the
proposed improvements will make for the public.
Planning and Development Services Division Manager Danea Gemmell explained
that with the remodel their customers will be able to utilize a self-service kiosk to
obtain documents.
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November 1, 2018 Board Meeting Minutes-Page 3
Member Causey stated that he had no concerns with the seismic upgrade and the
server room relocation but was concerned about the need for the rest of the project,
including the movement of monies between projects.
Member Pilecki concurred with Member Causey and requested information
regarding the reason the project cost has apparently doubled. Capital Projects
Division Manager Edgar Lopez explained that when the Plant Operations Building
(POB) seismic project was evaluated back in 2009, the additional projects were not
included, and neither were the abatement and trailer costs.
Member Pilecki stated that there is a big discrepancy between the amount staff is
requesting and the amount in the budget. He would like alternative options for public
use of the Multi-Purpose Room, such as the Collection Systems Operations (CSO)
offices in Walnut Creek and believes portions of this project constitute wants versus
needs.
Member McGill stated that he does not support the idea of not allowing the public to
use the Multi-Purpose Room. He stated that if the General Manager recommends
the entire project, and he would support it.
General Manager Roger S. Bailey stated that he received a call from a Board
Members regarding complaints from constituents regarding the long wait periods to
process permits.
Member Causey asked for metrics on customer service of the permit counter.
Mr. Petit stated that metrics were presented at the Real Estate, Environmental &
Planning (RESP) Committee meeting in October, and that staff would be providing
updates on a quarterly basis going forward.
Tim Potter, President of Central San's Management Support/Confidential Group
(MS/CG) bargaining unit, addressed the Board regarding staff support of the project
and providing a safe work environment for the employees.
Winston Ingram, President of Central San's Local One bargaining group, expressed
staff's support of the project and the welfare and safety of the employees.
President Nejedly stated that he struggled with the project financially until staff's
presentation and believes that there are needs and wants for the public and for the
employees.
Member Causey asked for a Roll Call vote.
District Council Kent Alm reminded the Board that the motion also includes the
Board's rejection of the protest filed by Manito Construction.
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November 1, 2018 Board Meeting Minutes -Page 4
BOARD ACTION: Motion was made by Member Nejedly and seconded by
Member McGill to reject the protest and award a construction contract in the
amount of $5,665,000 to CWS Construction Group, Inc., the lowest responsive
bidder for the Plant Operations Building Seismic Upgrades and Server Room
Relocation, District Projects 7362 and 8243; authorize the General Manager to
execute agreements with MWA Architects, Kleinfelder, Inc., and
ComputerLand; find the project exempt from CEQA; include up to a 10-
percent contingency; and authorize the General Manager to transfer up to $1
million from the Capital Program. Motion passed by the following roll call vote
of the Board:
AYES: Members: McGill, Nejedly, Williams
NOES: Members: Causey, Pilecki
ABSTAIN: Members: None
Member Pilecki stated that he is supportive of the seismic project but has concerns
for staff's needs verses wants and the impact on the future rates.
PUBLIC HEARINGS
8. Conduct a public hearing to consider approval of the North Jackson Way Contractual
Assessment District (CAD) No. 2016-2 in Alamo, District Project 6647;
adopt Resolution No. 2018-037 confirming compliance with California Constitution,
Article XIIID, Section 4 (Proposition 218); adopt Resolution No. 2018-038 approving
the Engineer's Report and Assessments, ordering improvement, and finding the
project exempt from the California Environmental Quality Act (CEQA); and authorize
the General Manager to execute an agreement with the North Jackson Way CAD
No. 2016-2 participants
Engineering Assistant 111 Russell Leavitt reviewed the presentation included in the
agenda materials.
President Nejedly opened the public hearing. There being no members of the public
present to speak on the matter, the hearing was closed without comment.
BOARD ACTION: Motion was made by Member Pilecki and seconded by
Member Williams to approve the North Jackson Way CAD No. 2016-2, District
Project 6647; adopt the proposed resolutions; find the project exempt from
CEQA; and authorize the General Manager to execute an agreement with the
CAD participants. Motion passed by unanimous vote.
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November 1, 2018 Board Meeting Minutes -Page 5
OTHER BOARD ACTION ITEMS
9. Approve expenditures dated November 1 , 2018
BOARD ACTION: Motion was made by Member Pilecki and seconded by
Member Nejedly to approve the expenditures dated November 1, 2018. Motion
passed by unanimous vote of the Board.
10. Adopt the Memorandum of Understanding (MOU) between the District and the
Public Employees Union, Local One, effective December 18, 2017 through April 17,
2022
Member Williams read a prepared statement and expressed his appreciation
towards staff.
Member Causey also read from a prepared statement and stated that negotiations
were a stressful time for all, expressed his concerns about spikes in the unfunded
actuarial accrued liability and opined that staff does a great job.
Member Pilecki asked for staff to explain the $5 million health care cost savings from
switching to CaIPERS. Mr. Bailey stated that the net cost savings is expected to be
over$5 million once the transition is completed.
Member McGill stated that a salary increase in line with the Consumer Price Index
(CPI), such as that included with the new MOL/s, is not a raise to the employees; it is
just an effort to keep salaries whole.
BOARD ACTION: Motion was made by Member McGill and seconded by
Member Pilecki to adopt the MOU between the District and the Public
Employees Union, Local One, effective December 18, 2017 through April 17,
2022. Motion passed by the following roll call vote of the Board:
AYES: Members: McGill, Nejedly, Pilecki
NOES: Members: Causey, Williams
ABSTAIN: Members: None
11. Adopt the MOU between the District and the Management Support/Confidential
Group effective December 18, 2017 through April 17, 2022
BOARD ACTION: Motion was made by Member McGill and seconded by
Member Pilecki to adopt the MOU between the District and the Management
Support/Confidential Group effective December 18, 2017 through April 17,
2022. Motion passed by the following roll call vote of the Board:
AYES: Members: McGill, Nejedly, Pilecki
NOES: Members: Causey, Williams
ABSTAIN: Members: None
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November 1, 2018 Board Meeting Minutes -Page 6
12. Adopt the MOU between the District and the Management Group effective
December 18, 2017 through December 17, 2021
BOARD ACTION: Motion was made by Member McGill and seconded by
Member Pilecki to adopt the MOU between the District and the Management
Group effective December 18, 2017 through December 17, 2021. Motion
passed by the following roll call vote of the Board:
AYES: Members: McGill, Nejedly, Pilecki, Williams
NOES: Members: Causey
ABSTAIN: Members: None
REPORTS AND ANNOUNCEMENTS
13. General Manager— Reports
a. Receive Fiscal Year 2017-18 Household Hazardous Waste Program Annual
Report
Household Hazardous Waste Technician Matthew Thomas reviewed the
presentation included with the agenda material.
BOARD ACTION: Received the report.
14. General Manager— Announcements
a. Announcements — November 1, 2018
1) Industrial User Academy hosted by Central San Staff
2) Annual notices sent to Reimbursement Account Holders
3) General Manager Authorized Contracts, Agreements, Etc. — Third
Quarter 2018
4) Update on Personnel Actions — Third Quarter 2018
5) Central San letter sent in support of Bureau of Reclamation's Title XVI
Water Reclamation and Reuse Competitive Grant Program
No further announcements were made during the meeting.
BOARD ACTION: Received the announcements.
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November 1, 2018 Board Meeting Minutes -Page 7
15. Counsel for the District
None.
BOARD ACTION: Received the announcement.
16. Secretary of the District
Ms. Young announced the following upcoming Committee meetings:
Engineering & Operations — Monday, November 5 at 9:00 a.m.
Administration — Tuesday, November 6 at 8:30 a.m.
Real Estate, Environmental & Planning — Wednesday, November 14 at 2:00 p.m.
BOARD ACTION: Received the announcements.
17. Board Members — Committee Minutes
a. October 23, 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
• October 28, 2018 — Presentation to Pleasant Hill Instructional Garden
Member McGill also provided a written report covering his announcements
and other meetings.
Member Pilecki — No report.
Member Williams — No report.
President Neledly — No report.
BOARD ACTION: Received the reports and announcements.
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November 1, 2018 Board Meeting Minutes-Page 8
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.
FINANCIAL PLANNING WORKSHOP NO. 1
20. Receive updated Ten-Year Capital Financing Plan, and consider directing staff to
allocate (1) $11.7 million favorable Fiscal Year (FY) 2017-18 Budget variances to the
Sewer Construction Fund, and (2) $2.5 million in budgeted Operations and
Maintenance (O&M) expenditures in FY 2018-19 to the Pension Prefunding Trust
Director of Finance and Administration Phil Leiber led off the workshop by reviewing
the updated Ten-Year Capital Financing Plan Summary as well as the staff
recommendations with regard to allocating the FY 2017-18 favorable budget
variances and the $2.5 million budgeted in this fiscal year toward unfunded pension
liabilities. He noted that recent favorable developments resulted in a decreased
reliance on debt financing over the next five years from $185 million to $154 million,
and that the first required debt issuance was pushed back from FY 2019-20 to
FY 2020-21.
During the presentation, there was a discussion on debt financing and its potential
impact on reimbursements from the City of Concord. Mr. Leiber's portion of the
presentation was followed by financial consultants Sarah Hollenbeck, Managing
Director of PFM Financial Advisors, and Greg Swartz of Piper Jaffray, the senior
managing underwriter for the recent 2009 bond refinancing, who reviewed the
potential funding sources for the capital program.
Member Causey asked if there was considering of funding the improvements on
structures and new facilities through to address concerns of the users of the assets
paying for them over their useful life. Ms. Hollenbeck stated that long-term debt past
30 years is possible, and that the use of debt can appropriately allocate the costs of
projects over their expected useful lives, addressing concerns about inter-
generational equity. Numerous alternatives were compared, and several were
dismissed as not available to Central San. Promising alternatives to revenue bonds,
including California State Water Resources Control Board (SWRCB) State Revolving
Fund (SRF) loans and loans through the California Infrastructure and Economic
Development Bank (IBank) were presented. Water Infrastructure Finance and
Innovation Act (WIFIA) loans were also discussed and the circumstances under
which certain entities have found those loans attractive. WIFIA loans are not viewed
as attractive to Central San at this time given the interest rates and lack of capital
structure and rating issues at Central San that made those loans of interest to
others.
The presentation was concluded by Planning and Development Services Division
Manager Danea Gemmell who reviewed the alternative funding plan involving
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November 1, 2018 Board Meeting Minutes -Page 9
potential capital projects that may be eligible for SRF loans from the SWRCB. A
strategy was presented for packaging Central San projects into groupings that would
be competitive under the new SRF scoring approach that is currently being
implemented by the State.
President Nejedly left the meeting at 4:43 p.m.
Mr. Bailey advised that in January staff will come back to the Board at Financial
Planning Workshop No. 2 with various rate scenarios and debt financing options but
wanted to provide an overview at this time and obtain feedback from the Board
Members with respect to the Ten-Year Capital Financing Plan.
Member Causey requested that the Ten-Year Capital Financing Plan be part of the
future discussion, including the impact and the process of the funding.
Member Pilecki requested a scenario that reduces expenditures in the Ten-Year
Capital Improvement Plan (CIP) by 10 percent.
Member McGill asked staff to specify capital project "needs versus wants"when the
plan is next presented the Board.
BOARD ACTION:
a. Provided the following feedback to staff to aid in planning for the
scheduled January 15, 2019 Financial Planning Workshop No. 2:
• Provide Ten-Year Capital Financing Plan with funding options
• Provide scenario reducing capital expenditures (for example, by
10%) in the Ten-Year CIP
• Clarify staff's view of needs versus wants on proposed capital
projects in the Ten-Year CIP
b. Motion was made by Member McGill and seconded by Member Pilecki to
direct staff to allocate the $11.7 million favorable FY 2017-18 Budget
variances to the Sewer Construction Fund. Motion passed by the
following vote of the Board:
AYES: Members: Causey, McGill, Pilecki, Williams
NOES: Members: None
ABSTAIN: Members: None
ABSENT: Members: Nejedly
C. Motion was made by Member McGill and seconded by Member Causey
to direct staff to allocate the $2.5 million in budgeted O&M expenditures
in FY 2018-19 to the Pension Prefunding Trust. Motion passed by the
following vote of the Board:
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AYES: Members: Causey, McGill, Pilecki, Williams
NOES: Members: None
ABSTAIN: Members: None
ABSENT: Members: Nejedly
EMERGENCY SITUATIONS
None.
REQUESTS FOR FUTURE AGENDA ITEMS
None.
ADJOURNMENT
The meeting was adjourned at 5:18 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
November 15, 2018 Regular Board Meeting Agenda Packet- Page 16 of 254